/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090218.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, February 18, 2009, Vol. 12, No. 34 Headlines A U S T R A L I A ANGSANA TRAVEL: Placed Under Voluntary Wind-Up B & U FIRE: Inability to Pay Debts Prompts Wind-Up BHFME PTY ET AL: Commence Wind-Up Proceedings CASHPRO INTEGRATED ET AL: Commence Wind-Up Proceedings DRIVETRAIN INTERNATIONAL: Placed in Receivership ENVIRONINVEST LAND ET AL: Creditors Opt to Wind Up Operations ENVIRONINVEST LTD: Commences Wind-Up Proceedings GREENVALE PLASTER: Placed Under Voluntary Wind-Up GTP (NSW): Declares First and Final Dividend HELTON AUSTRALIA: Members and Creditors Receive Wind-Up Report I.D.C.S PTY: Creditors Opt to Wind Up Operations I.D.C.S SERVICES: Creditors Opt to Wind Up Operations LAVERTON TRANSPORT: Placed Under Voluntary Wind-Up MALDON NOMINEES: Members and Creditors Receive Wind-Up Report MASTRO CONCRETE: Placed Under Voluntary Wind-Up MECCA BAH ET AL: Placed Under Voluntary Wind-Up MERRYNGLEN PTY: Placed Under Voluntary Wind-Up OZ MINERALS: Receives AU$2.6 Billion Takeover Offer from Minmetals PINESDALE PTY ET AL: Members and Creditors Hear Wind-Up Report S.T.Y. (AFFORESTATION) ET AL: Placed Under Voluntary Wind-Up SELLMORE INVESTMENTS: Members Receive Wind-Up Report TRIDENT AIR: Declares Second and Final Dividend * AUSTRALIA: May Suffer Recession if Japan Economic Slump Worsens * S&P Puts 'B' Rating on Obelisk Trust 2006-3 Eden on WatchNeg. C H I N A ASIA ALUMINUM: Moody's Junks Corporate Ratings on Tender Offers ASIA ALUMINUM: Tender Offers Prompt S&P's Rating Cut to 'CC' UNIVERSAL FOG: Posts US$46,413 Net Loss in Quarter ended Dec. 31 H O N G K O N G CHAN'S SCAFFOLDING: Court to Hear Wind-Up Petition on March 4 DUNCAN INTERIOR: Court to Hear Wind-Up Petition on March 11 HIN FAI: Intends to Declare Dividend NFY NURSERY: Creditors' Proofs of Debt Due on February 27 OCEAN WAVE: Court to Hear Wind-Up Petition on March 11 PEAK QUALITY: Court to Hear Wind-Up Petition on March 18 REHM SUNEAST: Court to Hear Wind-Up Petition on April 1 SGA (HK): Appoints Middleton and Cowley as Liquidators SGA INTERNATIONAL: Appoints Middleton and Cowley as Liquidators SUNLINK INTERNATIONAL: Appoints Keung and Wai as Liquidators THE INCORPORATED: Contributories and Creditors Hold Meetings TOP SUCCESS: Court Hears Wind-Up Petition I N D I A GANGOTRI TEXTILES: Debt Servicing Delays Spur "D" CRISIL Ratings KAANE PACKAGING: CRISIL Rates Rs.50.0MM Cash Credit Limits at 'BB' MAYTAS INFRA: High Court Rejects Lenders' Receivership Application MAYTAS INFRA: Gammon India May Bid to Acquire Firm MULTI-FLEX LAMI: CRISIL Places 'B-' Ratings on Various Bank Loans SHANTHALA SPHEROCAST: CRISIL Rates Rs.78MM Long Term Loan at 'BB+' SHRI DNYANESHWAR: CRISIL Assigns 'BB+' Rating on Rs.236MM LT Loan NILANSHU HIRE: RBI Cancels Certificate of Registration SATYAM COMPUTER: To Speed Up Bidder Selection Process * INDIA: Sees Lower Budget Deficit in March 2010 J A P A N FUJI ELECTRIC: S&P Changes Outlook on 'BB+' Rating to Negative LOPRO CORP: Seeking Up to JPY20 Billion in Public Funding * JAPAN: Economy Shrinks 12.7% on Falling Exports, Rising Yen K O R E A * KOREA: Firms to Cut 2009 Spending, Looming Recession Seen K U W A I T GULF INVESTMENT: Moody's Slashes Financial Strength Rating to 'D' N E W Z E A L A N D AXIOM INTERNATIONAL: Appoints Chatfield & Tietjens as Liquidators CATRA PROPERTIES: Court Hears Wind-Up Petition CIVIL WORKS: Court Hears Wind-Up Petition GLOBAL VIRTUAL: Appoints van Delden and Finnigan as Liquidators HEARTLAND DEVELOPMENTS: Goes Into Liquidation KINGDOM RESIDENTIAL: Court Hears Wind-Up Petition M.F.U. HOLDINGS: Commeces Liquidation Proceedings MODA PIETRA: Court Hears Wind-Up Petition MT VAEA: Court Hears Wind-Up Petition NEXA NEW ZEALAND: Court Hears Wind-Up Petition FISHER & PAYKEL: May Receive Gov't. Bail Out, PM John Key Says FISHER & PAYKEL: Slashes Profit for FY2009; May Raise Capital VIP DAIRY: Court Hears Wind-Up Petition S I N G A P O R E ARIEL SINGAPORE: Creditors Hold Meeting COCOWOODS INTERNATIONAL: Members to Hold Final Meeting on March 12 CONDUIT MANAGEMENT: Member to Hold Final Meeting on March 12 HO SHING: Court Enters Wind-Up Order SYDUS PTE: Court to Hear Wind-Up Petition on February 20 * SINGAPORE: Exports Fell 3.2% in January on Weak Demand T A I W A N PROMOS TECHNOLOGIES: Banks Agree on NT$3 Billion Loan X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= ANGSANA TRAVEL: Placed Under Voluntary Wind-Up ---------------------------------------------- At an extraordinary general meeting held on October 14, 2008, the sole member of Angsana Travel Pty Ltd resolved that the company be wound up voluntarily. The company's liquidators are: Rod Slattery Warren White PPB, Chartered Accountants 90 Collins Street, Level 10 Melbourne, Victoria B & U FIRE: Inability to Pay Debts Prompts Wind-Up -------------------------------------------------- The members of B & U Fire Protection Pty Ltd met on October 23, 2008, and resolved to voluntarily wind up the company's operations due to its inability to pay debts when it fall due. The company's liquidator is: Gary Fettes Rodgers Reidy Chartered Accountants 200 Queen Street, Level 10 Melbourne VIC 3000 BHFME PTY ET AL: Commence Wind-Up Proceedings --------------------------------------------- During a general meeting held on October 30, 2008, it was resolved by the members to voluntarily wind up the operations of: -- BHFME Pty Ltd; -- EIS Ken910 Pty Ltd; -- Asam Australia Pty Limited; -- Michlake Pty Ltd; -- Badenoch & York Pty. Ltd; and -- A.C.N. 075 066 483 Pty Ltd. The company's liquidator is: Richard Judson Judson & Co Chartered Accountants Suite 4, Level 1 10 Park Road Cheltenham VIC 3192 Telephone: (03) 9585 4155 CASHPRO INTEGRATED ET AL: Commence Wind-Up Proceedings ------------------------------------------------------ During a general meeting held on October 17, 2008, it was resolved by the members to voluntarily wind up the operations of: -- Cashpro Integrated Group Pty Ltd; -- Utopia Collingwood Pty Ltd; -- Blue Earth Properties (Footscray) Pty Ltd; -- "Last Name" Pty Ltd; and -- DIB Properties Pty Ltd. The companies' liquidator is: Gregory Stuart Andrews G S Andrews & Associates 22 Drummond Street Carlton VIC 3053 Telephone: (03) 9662 2666 Facsimile: (03) 9662 9544 DRIVETRAIN INTERNATIONAL: Placed in Receivership ------------------------------------------------ Drivetrain Systems International (DSI) was placed into receivership with debts of AU$30 million to AU$40 million, the SmartCompany reports. The company's production has been suspended for weeks with its 400 workers stood down. According to the report, receivers and manager Stephen Longley from PricewaterhouseCooopers will assess the company's financial position and attempt to sell the business as a going concern. The report says production is expected to resume next week. SmartCompany meanwhile relates the Australian Manufacturing Workers Union expects at least 200 workers will lose their jobs. The union, the report says, is also concerned that the 400 workers may not get paid of the AU$25 million entitlements they are owed. Drivetrain Systems, the report says, has been hit hard by the collapse of Korean car maker SsangYong Motor. Its customers in India and Russia have also cut back in recent months, the report notes. Drivetrain Systems International is a car parts manufacturer. The company employs about 380 at Lavington in Albury and 20 in Melbourne, Australia. ENVIRONINVEST LAND ET AL: Creditors Opt to Wind Up Operations -------------------------------------------------------------- On October 23, 2008, the creditors opt to voluntarily wind up the operations of: -- Environinvest Land Lease Pty Ltd; -- Environinvest Pastoral Pty Ltd; -- Environinvest Northern Cattle Pty Ltd; -- Eenvironinvest King Island Pty Ltd; -- Eenvironinvest Cropping Pty Ltd; -- Environinvest Cattle Pty Ltd; -- Dinibili Pastoral Company Pty Ltd; -- BEP Finance Pty Ltd; -- BEP Management Pty Ltd; and -- Environinvest Securities Pty Ltd. The company's liquidator is: James Patrick Downey J P Downey & Co 22 William Street, Level 1 Melbourne Vic 3000 ENVIRONINVEST LTD: Commences Wind-Up Proceedings ------------------------------------------------ The creditors of Environinvest Ltd met on October 24, 2008, and resolved that the company be wound up voluntarily. The company's liquidator is: James Patrick Downey J P Downey & Co Level 1, 22 William Street Melbourne VIC 3000 GREENVALE PLASTER: Placed Under Voluntary Wind-Up ------------------------------------------------- During a general meeting held on October 22, 2008, the members of Greenvale Plaster Pty. Ltd. resolved that the company be wound up voluntarily. The company's liquidator is: Gregory Stuart Andrews G S Andrews & Associates 22 Drummond Street Carlton VIC 3053 Telephone: (03) 9662 2666 Facsimile: (03) 9662 9544 GTP (NSW): Declares First and Final Dividend -------------------------------------------- GTP (NSW) Pty Ltd declared the first and final dividend on November 21, 2008. Only creditors who were able to file their proofs of debt by that day were included in the company's dividend distribution. The company's liquidator is: Richard Judson Judson & Co Chartered Accountants Suite 4, Level 1 10 Park Road Cheltenham VIC 3192 Telephone: (03) 9585 4155 HELTON AUSTRALIA: Members and Creditors Receive Wind-Up Report -------------------------------------------------------------- The members and creditors of Helton Australia Pty Ltd met on December 9, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Con Kokkinos Worrells Solvency & Forensic Accountants 15 Queen Street, Level 5 Melbourne VIC 3000 Telephone: (03) 9613 5516 Facsimile: (03) 9614 3233 Website: http://www.worrells.net.au I.D.C.S PTY: Creditors Opt to Wind Up Operations ------------------------------------------------ On October 29, 2008, the creditors of I.D.C.S Pty Ltd resolved that the company be wound up voluntarily. The company's liquidator is: D. A. Turner PKF 140 William Street, Level 14 Melbourne VIC 3000 I.D.C.S SERVICES: Creditors Opt to Wind Up Operations ----------------------------------------------------- On October 29, 2008, the creditors of I.D.C.S Services Pty Ltd resolved that the company be wound up voluntarily. The company's liquidator is: D. A. Turner PKF 140 William Street, Level 14 Melbourne VIC 3000 LAVERTON TRANSPORT: Placed Under Voluntary Wind-Up -------------------------------------------------- At an extraordinary general meeting held on October 27, 2008, the members of Laverton Transport Pty Ltd resolved that the company be wound up voluntarily. The company's liquidator is: William Bernard Abeyratne c/o APL Insolvency 150 Albert Road, Level 5 South Melbourne VIC 3205 Telephone: (03) 9696 2885 MALDON NOMINEES: Members and Creditors Receive Wind-Up Report ------------------------------------------------------------- The members and creditors of Maldon Nominees Pty Ltd met on December 11, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. A. S. R. Hewitt is the company's liquidator. MASTRO CONCRETE: Placed Under Voluntary Wind-Up ----------------------------------------------- During a general meeting held on October 13, 2008, the members of Mastro Concrete Pumping Pty. Ltd. resolved that the company be wound up voluntarily. The company's liquidator is: Gregory Stuart Andrews G S Andrews & Associates 22 Drummond Street Carlton VIC 3053 Telephone: (03) 9662 2666 Facsimile: (03) 9662 9544 MECCA BAH ET AL: Placed Under Voluntary Wind-Up ----------------------------------------------- On October 29, 2008, the members resolved to voluntarily wind up the operations of: -- Mecca Bah (FV) Pty Ltd; -- Mecca BAH TMBDDTPTY Ltd; -- Livebait Docklands Pty Ltd; -- Mecca Victoria Pty Ltd; -- The Restaurant Management Group Pty Ltd; -- Trytell Holdings Pty Ltd; -- Trytell Holdings (FV) Pty Ltd; -- Claringbold Corporation (FV) Pty Ltd; and -- Janstar Pty Ltd. The company's liquidator is: James Patrick Downey J P Downey & Co Level 1, 22 William Street Melbourne VIC 3000 MERRYNGLEN PTY: Placed Under Voluntary Wind-Up ---------------------------------------------- At an extraordinary general meeting held on October 28, 2008, the members of Merrynglen Pty Ltd resolved that the company be wound up voluntarily. The company's liquidators are: Gess Michael Rambaldi David Raj Vasudevan Pitcher Partners 15 William Street, Level 19 Melbourne, Victoria 3000 OZ MINERALS: Receives AU$2.6 Billion Takeover Offer from Minmetals ------------------------------------------------------------------ OZ Minerals Limited said it has entered into a Scheme Implementation Agreement with China Minmetals Non-ferrous Metals Company Limited for the proposed acquisition through a scheme of arrangement of all outstanding shares in OZ Minerals by Minmetals at a cash price of 82.5 cents per share. The transaction is unanimously recommended by OZ Minerals' Board of Directors, subject to no superior competing proposal and confirmation by an independent expert that the transaction is in the best interest of OZ Minerals shareholders, the company said in a statement. Completion of the transaction is subject to a number of conditions including due diligence, the approval of regulatory authorities in Australia and the People's Republic of China as well as the approval of OZ Minerals' current lending banks. Breakup Fee Brett Foley at Bloomberg News reports that OZ Minerals is putting up few barriers to a higher bid after accepting China Minmetals's AU$2.6 billion ($1.7 billion) takeover offer. According to Bloomberg News, China Minmetals would get a AU$25.8 million fee if OZ Minerals abandons the deal. The report relates the 49 percent decline in the London Metal Exchange index in the past six months contributed to OZ's 70 percent collapse in Sydney trading, encouraging larger companies to seek takeovers. Evy Hambro, a managing director at BlackRock Investment Management Ltd. in London, as cited by the report, said the penalty payment is "small" and wouldn't stand in the way of another bidder. OZ's breakup fee is within the 1 percent to 2 percent range typical in deals recommended by the target company, according to data compiled by Bloomberg. Debt Facility As reported by the Troubled Company Reporter-Asia Pacific on Jan. 26, 2009, OZ Minerals said it secured a bridging finance facility of up to AU$140 million. Proceeds from the bridging facility are principally available to be used to cover expected short-term cash requirements in respect of the company's operations and projects at Golden Grove, Prominent Hill and Martabe. The bridging facility will terminate on February 27, 2009, and is repayable by that date. OZ Minerals previously disclosed it is working to achieve a refinancing of its debt facilities by February 27, 2009, with the agreement of its lenders and, in that context, is actively pursuing both an asset sale program and other initiatives. About China Minmetals China Minmetals is one of the largest metals and minerals trading companies in the world and the largest iron and steel trader in China. The company exports coke, coal, and ferroalloys; imports iron ore, steel scraps, and slabs and billets; and sells about 20 million tons of steel products annually. It has domestic iron ore mining operations and also helps steel producers abroad with facility construction and equipment supply. Other subsidiaries deal in financial services, real estate development, and transportation logistics. China Minmetals' sales network stretches through Africa, the Americas, Asia, Australia, and Europe. It operates more than 100 offices in China and more than 40 companies abroad. About OZ Minerals OZ Minerals Limited, formerly Oxiana Limited, -- http://www.ozminerals.com/-- is an Australia-based mining company. The company is a producer of zinc, copper, lead, gold and silver. OZ Minerals was formed through a merger of Australia- based international mining companies Oxiana Limited and Zinifex Limited. The company has five mining operations located in Australia and Asia, three new mining projects in development and a portfolio of advanced and early-stage exploration projects throughout Australia, Asia and North America. Its projects include the Century mine in Queensland, Sepon copper operation in Laos, the gold operation at Sepon, the Golden Grove underground base and precious metals mine in Western Australia, the Rosebery mine in Tasmania, the Avebury nickel mine in Tasmania, the Prominent Hill copper-gold project in South Australia, the Martabe gold project in Indonesia, the Dugald River deposit in Queensland, and the Izok Lake and High Lake copper and zinc deposits in the Nunavut territories of Canada. * * * As reported by the Troubled Company Reporter-Asia Pacific on December 12, 2008, Fitch Ratings downgraded OZ Minerals Limited's Long-term foreign currency Issuer Default Rating to 'CC' from 'BBB-' (BBB minus), and has simultaneously withdrawn it. The rating remained on Rating Watch Negative at the time of withdrawal. PINESDALE PTY ET AL: Members and Creditors Hear Wind-Up Report -------------------------------------------------------------- On December 15, 2008, Gideon Rathner presented the companies' wind-up report and property disposal to the members and creditors of: -- Pinesdale Pty Ltd; -- Ninety Second Macorp Nominees Pty Ltd; -- Polegate Pty Ltd; -- Glendive Pty Ltd; -- Servington Pty Ltd; -- Sixty-Fourth Shelley Nominees Pty Ltd; and -- Clear The Airconditioning Company Pty Ltd. The Liquidator can be reached at: Gideon Rathner Lowe Lippmann, Chartered Accountants 5 St. Kilda Road St. Kilda Vic 3182 e-mail: grathner@lowelippmann.com.au S.T.Y. (AFFORESTATION) ET AL: Placed Under Voluntary Wind-Up ------------------------------------------------------------ On October 24, 2008, the members resolved to voluntarily wind up the operations of: -- S.T.Y. (Afforestation) Pty Ltd; and -- Primary Yield Finance Pty Ltd. The company's liquidator is: James Patrick Downey J P Downey & Co Level 1, 22 William Street Melbourne VIC 3000 SELLMORE INVESTMENTS: Members Receive Wind-Up Report ---------------------------------------------------- The members of Sellmore Investments Pty Ltd met on Dec. 1, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: G. Sbarrato MCG Partners 18 Camberwell Road, 1st Floor Hawthorn East VIC 3123 TRIDENT AIR: Declares Second and Final Dividend ----------------------------------------------- Trident Air Conditioning Services Pty Ltd declared the second and final dividend on November 21, 2008. Only creditors who were able to file their proofs of debt by that day were included in the company's dividend distribution. The company's liquidator is: Richard Judson Judson & Co Chartered Accountants Suite 4, Level 1 10 Park Road Cheltenham VIC 3192 Telephone: (03) 9585 4155 * AUSTRALIA: May Suffer Recession if Japan Economic Slump Worsens ----------------------------------------------------------------- Australia could go into recession this year if economic slump in Japan continues to worsen, ABC News reports citing AMP Capital's chief economist Shane Oliver. According to the report, Japan's GDP shrank 12.7 per cent from December 2007 to the end of last year, the country's worst result in 35 years. Mr. Oliver, as cited by the news agency, said Japan is Australia's largest export market so it will be a terrible six months for the resources sector and local agricultural producers. "That in turn, I think, will make it very difficult for Australia to avoid a recession," ABC News quoted the chief economist as saying. "My view is that we will have a recession ... the stimulus package will help mute that recession but I don't think it will be enough to stop a recession, given the slump in exports that we're likely to see down the track." AU$42 Bln Stimulus Package As reported in the Troubled Company Reporter-Asia Pacific on Feb. 5, 2009, Australia announced a AU$42 billion plan to add around 1/2 of one per cent to GDP growth in 2008-09 and around 3/4 to 1 per cent to GDP growth in 2009-10. The new economic stimulus package, called "Nation Building and Jobs Plan", will support up to 90,000 jobs over the next 2 years, Treasurer of the Commonwealth of Australia Wayne Swan said in a statement. Under the plan, the government will: -- provide five key AU$950 one-off payments for low and middle income households and individuals; -- fund a AU$2.7 billion temporary business investment tax break for small and general businesses buying eligible assets; -- invest AU$14.7 billion for improvement of facilities in Australian schools; -- spend AU$890 million to improve community infrastructure; -- construct over 20,000 new homes; and -- install free ceiling insulation in around 2.7 million Australian homes. "In the midst of this global recession it would be irresponsible not to act swiftly and decisively to support jobs and invest in nation building," Treasurer Swan said, noting a AU$22.5 billion (1.9 per cent of GDP) budget deficit is now forecast for 2008-09. "The global recession has hit budgets hard all around the world, with the IMF now forecasting a collective budget deficit of 7 per cent of GDP for advanced economies," the Treasurer added. Rising Bad Debts The Wall Street Journal reports bad debts continue to climb in Australia after Commonwealth Bank of Australia Ltd said impairments for bad and doubtful debts rose almost fivefold to AU$1.61 billion (US$1.09 billion) from AU$333 million due to the bank's exposure to some failed or struggling businesses. National Australia Bank Ltd and Australia & New Zealand Banking Group Ltd earlier warned that rising bad debts are eroding profitability, the Journal relates. * S&P Puts 'B' Rating on Obelisk Trust 2006-3 Eden on WatchNeg. --------------------------------------------------------------- Standard & Poor's Ratings Services placed the ratings on two Australian synthetic collateralized debt obligations on CreditWatch with negative implications. This follows the recent rating actions taken by Standard & Poor's on Asia-Pacific (excluding Japan) synthetic CDOs on Feb. 13, 2009. The two CDOs were placed on CreditWatch negative because their synthetic rated overcollateralization levels fell below 100% at the current rating level in the end-of-month analysis for January 2009. When the SROC is below 100%, it indicates that there is insufficient credit enhancement to maintain a rating on a tranche. Related Research This article is based in part on these criteria articles: -- CDO Spotlight: Synthetic ROC and the Surveillance of Synthetic CDOs published on March 15, 2004 -- Refinements To Standard & Poor's Synthetic CDOs CreditWatch And Upgrade Policy published on Sept. 15, 2006 The rating actions taken on the affected transactions are: Deal Name Rating To Rating From --------- --------- ----------- Obelisk Trust 2006-3 Eden B/Watch Neg B SELECT ACCESS Investments Ltd. Series 2004-15 BBB-/Watch Neg BBB- ========= C H I N A ========= ASIA ALUMINUM: Moody's Junks Corporate Ratings on Tender Offers --------------------------------------------------------------- Moody's Investors Service has downgraded to Caa1 from B2 the corporate family rating (CFR) and to Ca from B3 the senior unsecured note ratings of Asia Aluminum Holdings Ltd's. The outlook for the ratings remains negative. "The rating action follows AA's announcement that it is commencing a tender offer and consent solicitation for its US$450 million senior notes due 2011, and US$535 million PIK notes due 2012 as part of its debt restructuring plan," says Wonnie Chu, a Moody's Analyst, adding, "The company will offer up to 27.5 cents to the dollar for the senior notes and 13.5 cents to the dollar for the PIK notes, representing a very deep discount to the face value." "Moody's views the transaction as a distressed exchange, and the Ca rating for the senior notes reflects the high economic loss and low recovery rate for the note holders," says Chu. The downgrade of the CFR to Caa1 reflects Moody's view that the company's deteriorated operating performance -- due to the materially weakening market conditions, delay in the ramp-up of its new flat roll product plant, and reliance on short-term financing for its large working capital requirements -- in the context of a tightening credit environment have adversely affected the company's credit profile. In addition, according to the company's announcement, its bank creditors may demand immediate repayment of all outstanding short- term debts should the company fail to consummate the tender offer and consent solicitation -- an obligation that the company will not be able to fulfill with its cash on hand. The negative outlook reflects the high degree of uncertainty over the successfully completion of the tender offer and consent solicitation. If the tender offer fails to go ahead, the ratings will be lowered further to reflect the higher probability of default and lower expected recovery rate. At the same time, Moody's recognizes that the completion of the transaction could result in a significant reduction in AA's debt and interest burden, which would be positive for the CFR or its rating outlook. Moody's will evaluate the rating impact upon completion of the tender offer process. The last rating action was on December 22, 2008, when the company's CFR was downgraded to B2 from B1 and the senior unsecured bond to B3 from B2 with a negative outlook. Asia Aluminum Holdings Ltd, founded in 1992, is the largest manufacturer of aluminum extrusion products in Asia, with 360,000 metric tons annual design capacity. The company also expects to fully commence its 400,000 MT flat-rolled product facility by FY2009. AAH was privatized in May 2006. The new holding company, Asia Aluminum Investment, is controlled by Mr. Kwong Wui Chun, the founder and chairman of AAH. ASIA ALUMINUM: Tender Offers Prompt S&P's Rating Cut to 'CC' ------------------------------------------------------------ Standard & Poor's Ratings Services said that it has lowered its long-term corporate credit rating on Chinese aluminum extruder Asia Aluminum Holdings Ltd. to 'CC' from 'B'. The outlook is negative. At the same time, Standard & Poor's lowered its issue rating on the company's US$450 million senior unsecured notes due 2011 to 'C' from 'B-'. "These actions follow the company's announcement of tender offers to buy back its outstanding bonds and to solicit bondholders' consent," said Standard & Poor's credit analyst Bei Fu. If completed, S&P would view the proposed transactions as being tantamount to default because: (1) the tender offers represent a substantial discount to the par amount (or face value) of the outstanding issues; and (2) in S&P's view, Asia Aluminum is uncertain to be able to service its current debt obligation over the next two to three years if its offer is not accepted. "If the alternative to such a tender is a general default, investors or counterparties could stand to fare even worse, which may partially motivate them to accept the offer," said Ms. Fu. Asia Aluminum is offering up to US$275 for every US$1,000 of the principal amount for the senior unsecured notes and up to US$135 for every US$1,000 of the principal amount of its payment- in-kind notes, including warrants. Currently, US$450 million of the principal amount of Asia Aluminum's senior unsecured notes are outstanding, compared with about US$727.53 million for the PIK notes. Business conditions for Asia Aluminum have weakened over the past two to three months as a result of the slowdown in the global economy. The company's sales volume by tonnage dropped 20% over the six months ended Dec. 31, 2008, while the cost of its sales per ton increased by 29% as it continued to prepare a new manufacturing facility for commercial production. S&P expects the prices of Asia Aluminum's products to have dropped during the same period, based on industry trends. The outlook is negative. The tender offer expires on May 18, 2009. If the proposed transaction is completed, S&P will lower the issue rating on the notes to 'D' and the corporate credit rating to 'SD' (for selective default). Thereafter, S&P will reassess Asia Aluminum's capital structure and assign new ratings based on the amount of notes successfully tendered. If Asia Aluminum's tender is not completed or it fails to solicit consent, its bank creditors may demand immediate repayment of all outstanding amounts and refuse to approve further drawdowns under the company's existing working capital facilities. S&P believes the company doesn't have sufficient financial resources to make such early repayments or to service the obligations under other notes. As a result, under such a scenario, S&P would be likely to lower the corporate credit rating and the issue rating to 'D'. UNIVERSAL FOG: Posts US$46,413 Net Loss in Quarter ended Dec. 31 -------------------------------------------------------------- Universal Fog, Inc., disclosed in a regulatory filing its financial results for the three and six months ended Dec. 31, 2008. Net loss for the three months ended Dec. 31, 2008, was US$46,413, an increase of US$41,822 compared with a net loss for the three months ended Dec. 31, 2007 of US$4,591. Net loss for the six months ended Dec. 31, 2008, was US$55,186, a decrease of US$7,080 or 11% compared to net loss for the six months ended December 31, 2007 of US$62,266. Liquidity and Capital Resources The company has a working capital deficit of US$860,611 as of Dec. 31, 2008. During the six months ended Dec. 31, 2008, net cash increased by US$91,368 or 259%, consisting of US$123,209 used in operating activities, US$35,627 used in investment activities, US$254,859 provided by financing activities and effects of foreign exchange on cash of US$4,655. Net cash used in operating activities increased US$41,119 or 50% during the six-month period ended Dec. 31, 2008, versus the comparable period in 2007. This increase was due to changes in working capital associated with the increase in inventory purchases, accounts receivable and prepaid expenses resulting from the increase of production and sales activities. The drivers of cash used in investing activities were capital spending. Cash used in investing activities was US$35,627 and US$1,917 for the six months ended Dec. 31, 2008, and 2007. During the six months ended Dec. 31, 2008, a total of US$35,627 cash outflow was used to purchase new equipment and additions to facilities. Net cash provided by financing activities for the six months ended Dec. 31, 2008, consisted of proceeds from related party debt of US$253,395, which is a critical source of its working capital funding. At Dec. 31, 2008, the company's balance sheet showed total assets of US$2,604,886, total liabilities of US$1,225,925, and stockholders' equity of US$1,378,961. Going Concern Doubt The Company had an accumulated deficit of US$254,614 and a working capital deficit of US$860,611 as of Dec. 31, 2008. Management has taken actions to revise its operating and financial requirements, which it believes are sufficient to provide the Company with the ability to continue as a going concern. During the inception period from Dec. 14, 2003 through Dec. 31, 2008, the Company relied for its financing needs on its majority owner; Xin Sun. A full-text copy of the 10-Q filing is available for free at: http://ResearchArchives.com/t/s?3984 About Universal Fog Inc. Headquartered in China, Universal Fog, Inc. (OTC:UVFO) -- http://www.unifog.com/-- was engaged in manufacturing systems for outdoor cooling United States. Pursuant to an Asset Purchase and Sale Agreement dated Sept. 10, 2007, the Company transferred all of its assets and liabilities to Universal Fog Systems, Inc., and the Company is no longer an operating company. As of December 31, 2007, the Company is no longer engaged in its businesses. It has no franchises as of December 31, 2007. ================ H O N G K O N G ================ CHAN'S SCAFFOLDING: Court to Hear Wind-Up Petition on March 4 ------------------------------------------------------------- A petition to have Chan's Scaffolding Company Limited's operations wound up will be heard before the High Court of Hong Kong on March 4, 2009, at 9:30 a.m. Cheung Shuk Yee filed the petition against the company on Dec. 30, 2009. DUNCAN INTERIOR: Court to Hear Wind-Up Petition on March 11 ----------------------------------------------------------- A petition to have Duncan Interior Limited's operations wound up will be heard before the High Court of Hong Kong on March 11, 2009, at 9:30 a.m. Kwok Hon Po, Anthony filed the petition against the company on January 5, 2009. The Petitioner's solicitors are: Chan, Lau & Wai Asia Standard Tower, 8th Floor Nos. 59-65 Queen's Road Central Hong Kong HIN FAI: Intends to Declare Dividend ------------------------------------ Hin Fai Limited intends to declare dividend. Only creditors who were able to file their proofs of debt by February 20, 2009, will be included in the company's dividend distribution. The company's liquidators are: Wong Man Chung, Francis Wong Wai Man, Cliff c/o AC & FW Consultants Limited 19th Floor, No. 3 Lockhart Road Wanchai, Hong Kong NFY NURSERY: Creditors' Proofs of Debt Due on February 27 --------------------------------------------------------- The creditors of NFY Nursery Limited are required to file their proofs of debt by February 27, 2009, to be included in the company's dividend distribution. The company's liquidators are: Stephen Briscoe Cosimo Borrelli 1801 Wong On House, 18th Floor 71 Des Voeux Road, Central Hong Kong OCEAN WAVE: Court to Hear Wind-Up Petition on March 11 ------------------------------------------------------ A petition to have Ocean Wave International Limited's operations wound up will be heard before the High Court of Hong Kong on March 11, 2009, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on December 23, 2009. The Petitioner's solicitors are: K.C. Ho & Fong Henley Building, 18th Floor 5 Queen's Road Central Hong Kong PEAK QUALITY: Court to Hear Wind-Up Petition on March 18 -------------------------------------------------------- A petition to have Peak Quality Limited's operations wound up will be heard before the High Court of Hong Kong on March 18, 2009, at 9:30 a.m. Dah Sing Bank, Limited filed the petition against the company on January 9, 2009. The Petitioner's solicitors are: Wilkinson & Grist Prince's Building, 6th Floor 10 Chater Road, Hong Kong Telephone: 2525-6011 Facsimile: 2520-2090 REHM SUNEAST: Court to Hear Wind-Up Petition on April 1 ------------------------------------------------------- A petition to have Rehm Suneast International Limited's operations wound up will be heard before the High Court of Hong Kong on April 1, 2009, at 9:30 a.m. Rehm Thermal Systems GmbH filed the petition against the company on Jan. 29, 2009. The Petitioner's solicitors are: Beiten Burkhardt 8 Queen's Road Central, 3rd Floor Hong Kong Telephone: 2524 6468 Facsimile: 2524 7028 SGA (HK): Appoints Middleton and Cowley as Liquidators ------------------------------------------------------ On November 17, 208, Edward Simon Middleton and Patrick Cowley were appointed as provisional liquidators of SGS (HK) Limited. The Liquidators can be reached at: Edward Simon Middleton Patrick Cowley KPMG Prince's Building, 8th Floor 10 Chater Road Central, Hong Kong SGA INTERNATIONAL: Appoints Middleton and Cowley as Liquidators --------------------------------------------------------------- On November 17, 208, Edward Simon Middleton and Patrick Cowley were appointed as provisional liquidators of SGA International Limited. The Liquidators can be reached at: Edward Simon Middleton Patrick Cowley KPMG Prince's Building, 8th Floor 10 Chater Road Central, Hong Kong SUNLINK INTERNATIONAL: Appoints Keung and Wai as Liquidators ------------------------------------------------------------ On December 24, 2008, Messrs. Stephen Liu Yiu Keung and David Yen Ching Wai were appointed as provisional liquidators of Sunlink International Holdings Limited. The Liquidators can be reached at: Stephen Liu Yiu Keung David Yen Ching Wai Ernst & Young Transactions Limited One Island East, 62nd Floor 18 Westlands Road Island East, Hong Kong THE INCORPORATED: Contributories and Creditors Hold Meetings ------------------------------------------------------------ The contributories and creditors of The Incorporated Owners of Kai Tak Mansion held a meeting on February 13, 2009, and discussed the filling two vacancies of the the committee of inspection. TOP SUCCESS: Court Hears Wind-Up Petition ----------------------------------------- On February 25, 2009, the High Court of Hong Kong heard a petition to have Top Success (Asia) International Limited's operations wound up. Zhuang Hong filed the petition against the company on Nov. 25, 2008. ========= I N D I A ========= GANGOTRI TEXTILES: Debt Servicing Delays Spur "D" CRISIL Ratings ---------------------------------------------------------------- CRISIL has assigned its ratings of 'D/P5' to the bank facilities of Gangotri Textiles Ltd (GTL). Rs.2826.5 Million Long Term Loan D (Assigned) Rs.900 Million Cash Credit D (Assigned) Rs.50 Million Letter of Credit P5 (Assigned) Rs.18.3 Million Bank Guarantee P5 (Assigned) The ratings reflect continued delays in debt servicing by GTL. The delays followed large losses because of sluggish textile markets, power interruptions affecting operations, and delays in stabilising operations subsequent to a large (about Rs.3.5 billion) debt-funded capital expenditure programme. The company is rescheduling its debt obligations through a corporate debt restructuring programme. About GTL GTL was promoted by Mr. Manoj Kumar Tibrewal in 1989. The company spins open-ended yarn and ring-spun yarn, and makes garments for the domestic market under the brand name 'Tibre'. As of March 2008, the company had a capacity of 5904 rotors and 17,376 spindles. Under a major expansion undertaken since mid-2006, the company has increased its spinning capacity besides adding weaving and processing facilities of 50,000 metres of fabric per day. For 2007-08 (refers to financial year, April 1 to March 31), the company reported a net loss of Rs.88 million on net sales of Rs.1.57 billion, as against a net profit of Rs.32 million on net sales of Rs.1.64 billion in the previous year. During the nine- month period ended December 31, 2008, the company reported a net loss of Rs.464 million on net sales of Rs.961 million, as against a net loss of Rs.50 million on net sales of Rs.1.18 billion during the corresponding period in the previous year. KAANE PACKAGING: CRISIL Rates Rs.50.0MM Cash Credit Limits at 'BB' ------------------------------------------------------------------ CRISIL has assigned its rating of 'BB/Stable' to the various bank facilities of Kaane Packaging Pvt Ltd (KPPL). Rs.50.0 Million Cash Credit Limits * BB/Stable (Assigned) Rs.120.0 Million Term Loan BB/Stable (Assigned) *Fungible with Letter of Credit upto Rs 10.0 Million The rating reflects KPPL's weak financial risk profile, low net worth, small scale of operations, and limited track record. These rating weaknesses are mitigated by the benefits that KPPL derives from the vast business experience of its promoters and their established relationships with customers. Outlook: Stable CRISIL expects KPPL to maintain its financial and business risk profiles on the back of promoters' vast experience in the industry. The outlook may be revised to 'Positive' in case of a sustained improvement in the company's profitability. Conversely, the outlook may be revised to 'Negative' if the company incurs more-than-expected, debt-funded capital expenditure, leading to further deterioration in its financial risk profile. About Kaane Packaging Incorporated in 1998, KPPL entered the business of manufacturing laminated rolls and pouches, used for packaging in the fast-moving consumer goods industry, in 2006. The company's facility at Haridwar has an installed laminated rolls manufacturing capacity of 2400 tonnes per annum (tpa). The plant is backward integrated with a polyfilm manufacturing capacity of 1200 tpa; thus, the company's entire polyfilm requirement is met in-house. KPPL reported a net loss of Rs.7 million on revenues of Rs.237 million in 2007-08 (refers to financial year, April 1 to March 31), as against a net loss of Rs.9 million on revenues of Rs.59 million in the previous year. MAYTAS INFRA: High Court Rejects Lenders' Receivership Application ------------------------------------------------------------------ The Bombay High Court has rejected an application made by IDBI Bank and ICICI Bank seeking appointment of a court receiver to oversee the administration of Maytas Infra Limited, India Infoline says citing a report. According to Infoline, Maytas is carrying out 62 infrastructure projects and has Rs40.45 billionn debt outstanding, in term loans and working capital facilities from various banks. The report says Maytas' financial health and its ability to complete the ongoing projects is crucial for the banks. On February 9, the report says a High Court judge had refused to grant ad-interim relief sought by the two banks. Legal Notice In a press statement, Maytas Infra said it has issued a legal notice to Vendanta Aluminum Limited for fraudulently and illegally encashing two Bank Guarantees worth Rs. 64 crores on Jan. 20, 2009, and for not clearing admitted dues. The Bank Guarantees were produced by Maytas Infra towards the contract awarded by Vedanta Aluminum to execute the construction of township for Vedanta Aluminium Limited on May 7, 2008. According to Maytas Infra, the legal notice was a result of the breach of contract by Vendanta due to the following: * Vedanta has encashed the Bank Guarantees without even terminating the contract or establishing any breach of the terms & conditions by Maytas Infra. The Bank Guarantee can be invoked only if the company provides a termination contract or establishes breach of terms and conditions. * Vedanta has not paid the undisputed amounts worth Rs. 29 crores towards the bills submitted by Maytas Infra Limited for the last 2 months by forcibly retaining them until Feb. 5, 2009. * Further, Vedanta in collusion with the local elements had illegally confined the employees of Maytas Infra Limited working at their Jharsuguda site from January 15, 2009 to January 25, 2009. Mr. Sudheer Mareddi, Vice President, Buildings & Structures, Maytas Infra, said, "Vedanta Aluminium Limited fraudulently encashed our Bank Guarantees and also did not settle our bills. Vedanta has not issued any termination notice to Maytas Infra as of today, neither has there been any intimation from their end on any breach of terms & conditions. It is a clear case of Vedanta taking advantage of the situation that Maytas Infra is currently in. Armed with money that lawfully belongs to Maytas Infra, Vendanta is in talks with other local contractors to complete its project." For non settlement of the admitted dues, Maytas Infra has served a statutory legal notice of company winding up to Vedanta Aluminium Limited under the Companies Act, and is in the process of filing company winding-up petition before the High Court at a time as stipulated by law. The total value of the project is Rs. 232 crores for construction of township, which is to be completed in all respects by December, 2009. Maytas Infra had already completed work amounting to Rs. 35 crores, and work is in progress for another Rs. 10 crores after mobilizing men, machineries, plant and equipment worth Rs. 30 crores. About Maytas Infra Maytas Infra Limited -- http://www.maytasinfra.com/-- is an India-based construction and infrastructure developer. The Company is primarily engaged in the business of construction of roads, irrigation projects, buildings, industrial structures, oil and gas infrastructure, railway infrastructure, power transmission and distribution lines, including rural electrification, power plants, and development of airports and seaports. The Company's construction business is classified into four sub-segments: transportation, which includes roads and railways; water projects; buildings and structures, and energy. Its infrastructure business is also classified into four sub-segments: power, ports, roads and airports. MAYTAS INFRA: Gammon India May Bid to Acquire Firm -------------------------------------------------- Gammon India is now in the race for taking over Maytas Infra Limited, The Economic Times reports citing highly placed sources. According to the report, the move follows declaration of the Raju family to the stock exchanges that their entire shareholding in Maytas Infra has been pledged to lenders. The report relates that Gammon India, whose under-construction flyover in Hyderabad collapsed two years ago, is supported by two small-time local players, Ritwik Projects and SEW Infrastructure to acquire Maytas. Citing an industry analyst, the Economic Times says financial institution IL&FS too is joining the three companies and is in talks for the purpose. IL&FS owns a part of the pledged shares of the Rajus, the report notes. However, the Economic Times's sources said suitors are seeking indemnity from actions taken by the previous management before they take the plunge. Maytas Infra Limited -- http://www.maytasinfra.com/-- is an India-based construction and infrastructure developer. The Company is primarily engaged in the business of construction of roads, irrigation projects, buildings, industrial structures, oil and gas infrastructure, railway infrastructure, power transmission and distribution lines, including rural electrification, power plants, and development of airports and seaports. The Company's construction business is classified into four sub-segments: transportation, which includes roads and railways; water projects; buildings and structures, and energy. Its infrastructure business is also classified into four sub-segments: power, ports, roads and airports. MULTI-FLEX LAMI: CRISIL Places 'B-' Ratings on Various Bank Loans ----------------------------------------------------------------- CRISIL has assigned its ratings of 'B-/Stable/P4' to the various bank facilities of Multi-Flex Lami Print Ltd (Multi-Flex). Rs.287.20 Million Cash Credit B-/Stable (Assigned) Rs.16.80 Million Working Capital B-/Stable (Assigned) Demand Loan Rs.229.00 Million Letter of Credit P4 (Assigned) The ratings reflect Multi-Flex's weak financial risk profile and exposure to risks relating to customer concentration and intense competition in the domestic flexible packaging industry. These weaknesses are, however, partially offset by the benefits that Multi-Flex derives from the long-standing experience of its promoters, and established relationships with key customers. Outlook: Stable CRISIL expects Multi-Flex to maintain a stable business risk profile on the back of established relations with key customers, and the growth prospects of the packaging industry. The outlook may be revised to 'Positive' if the company diversifies its customer profile, reduces gearing, and improves its operating margins and debt protection metrics. The outlook may, on the other hand, be revised to 'Negative' if the company's customer concentration risks increase, or it takes on significant, debt- funded capital expenditure, or reports a sharp decline in margins or faces a demand for heavy tax dues. About Multi-Flex Multi-Flex was incorporated in March 1991. It manufactures and sells the packaging laminates to the fast moving consumer goods (FMCG) and pesticide and agro-chemical companies. The company has two manufacturing facilities at Mahad (Maharashtra), with a laminates capacity of 14,400 tonnes per annum (tpa), and a polythene film capacity of 8520 tpa as on March 31, 2008. For 2007-08 (refers to financial year, April 1 to March 31), Multi- Flex reported a net loss of Rs.3.8 million on sales & other income of Rs.1071.3 million, as against a net loss of Rs.21.3 million on sales & other income of Rs.929.5 million for 2006-07. SHANTHALA SPHEROCAST: CRISIL Rates Rs.78MM Long Term Loan at 'BB+' ------------------------------------------------------------------ CRISIL has assigned its ratings of 'BB+/Stable/P4' to the various bank facilities of Shanthala Spherocast Pvt Ltd (SSPL). Rs.78.0 Million Long Term Loan BB+/Stable (Assigned) Rs.90.0 Million Cash Credit Limits BB+/Stable (Assigned) Rs.10.0 Million Letter of Credit P4 (Assigned) Limits Rs.2.0 Million Bank Guarantee Limits P4 (Assigned) The ratings reflect SSPL's limited financial flexibility marked by low net worth, high working capital requirements, and small scale of operations. However, these weaknesses are partially offset by SSPL's comfortable business risk profile backed by sound operating efficiencies. Outlook: Stable CRISIL believes that SSPL will maintain its current business and financial risk profiles over the medium term, on the back of healthy operating efficiencies and stable demand. The outlook may be revised to 'Positive' if the company's financial risk profile improves substantially driven by improvement in gearing and debt protection measures. Conversely, the outlook may be revised to 'Negative' if the company undertakes large, debt-funded capital expenditure, leading to deterioration in capital structure, or if a substantial decline in margins results in a weaker financial risk profile. About SSPL Set up in 1984, SSPL undertakes foundry job works, including casting and machining of components. The company manufactures ductile iron castings which are used in engineering, construction and automobile industries. SSPL's manufacturing facility at Shimoga (Karnataka) has capacity to manufacture 8500 tonnes of iron castings and components. The promoters of SSPL hold around 40 per cent stake in one of the group companies, Vijay Technocrats Pvt Ltd (VTPL) (CRISIL rated B/Stable/P4). VTPL manufactures intricate iron and high chrome castings. The promoters also own a machining facility, Shanthala Machining Private Ltd (SMPL). SMPL carries out machining activities for VTPL and SSPL. VTPL outsources 100 per cent and SSPL outsources nearly 50 per cent of its machining activities to SMPL. For 2007-08, (refers to financial year, April 1 to March 31) SSPL reported a profit after tax (PAT) of Rs. 14.6 million on net sales of Rs. 505.9 million, as against a PAT of Rs. 10.3 million on net sales of Rs. 393.7 million for 2006-07. SHRI DNYANESHWAR: CRISIL Assigns 'BB+' Rating on Rs.236MM LT Loan ----------------------------------------------------------------- CRISIL has assigned its ratings of 'BB+/Stable' to the various bank facilities of Shri Dnyaneshwar Sahakari Sakhar Karkhana Ltd (SDSSK). Rs.236.0 Million Long Term Loan BB+/Stable (Assigned) Rs.120.0 Million Cash Credit BB+/Stable (Assigned) The ratings reflect SDSSK's moderate financial risk profile marked by low net worth and high gearing due to aggressive debt-funded expansions, and exposure to regulatory risks governing the sugar industry. These weaknesses are, however, partially offset by the benefits that SDSSK derives from its healthy operational efficiencies supported by integrated nature of operations. Outlook: Stable CRISIL believes that SDSSK will maintain its existing business risk profile, backed by benefits derived from its forward integration initiatives. The outlook may be revised to 'Positive' if there is a significant improvement in the company's financial profile due to higher-than-expected cash accruals, coupled with a comfortable capital structure maintained over the medium term. Conversely, the outlook may be revised to 'Negative' in case of higher-than-expected debt-funded capital expenditure. About SDSSK SDSSK, incorporated in 1972, is a fully-integrated sugar manufacturer, with distillery and co-generation facilities. SDSSK, a co-operative society, functions as a non-profit organisation and distributes most its profits to the sugarcane farmers after considering maturing debt obligations. The company's facilities at Ahmednagar include capacity to crush 6000 tonnes of sugar per day, a distillery with 45 kilo litres per day, and a 4 mega watt captive power plant. Recently, the company set up its 12 MW co- generation plant which was commissioned in August 2007. The co- operative society, set up by the late Mr. Marutrao Ghule, is currently managed by his sons, Mr. Chandrasekhar Ghule and Mr. Narendra Ghule along with an elected Board. For 2007-08 (refers to financial year, April 1 to March 31), SDSSK reported a profit after tax (PAT) of Rs.2.6 million on net sales of Rs.1,578 million, as against a PAT of Rs.1.8 million on net sales of Rs.1,897 million for 2006-07. NILANSHU HIRE: RBI Cancels Certificate of Registration ------------------------------------------------------ The Reserve Bank of India cancelled the certificate of registration granted to Nilanshu Hire Purchase Ltd for carrying on the business of a non-banking financial institution as the company has opted to exit from the business of a non-banking financial institution. Following cancellation of the registration certificate, Microland Investments Private Limited, cannot transact the business of a non-banking financial institution. Under powers conferred by Section 45-IA (6) of the Reserve Bank of India Act, 1934, the Reserve Bank can cancel the registration certificate of a non-banking financial company. The business of a non-banking financial institution is defined in clause (a) of Section 45-I of the Reserve Bank of India Act, 1934. Nilanshu Hire Purchase Ltd.'s registered office is at Ayodhya Nagar, in Ujhani, Budaun. SATYAM COMPUTER: To Speed Up Bidder Selection Process ----------------------------------------------------- Satyam Computer Services Limited has begun considering purchase offers for the company, The Wall Street Journal reports citing new Chief Executive Officer A.S. Murty. Reuters relates Satyam said it would accelerate plans to find a bidder after India's market regulator amended its takeover rules. According to Reuters, the Securities and Exchange Board of India (SEBI) on Friday said it would relax its takeover rules if approached by a target firm that met certain conditions. The company has been approached by "numerous entities," Mr. Murty said in written responses to questions from the Journal. According to the Journal, entities who have expressed interest in Satyam include Larsen & Toubro Ltd., which holds a 12% stake in Satyam, HCL Technologies Ltd., the Hinduja Group, Tech Mahindra Ltd. and Spice Group. No specific date has been set for the any deal to close, the Journal discloses. "There is no timeline that we can commit [to] at this stage," Mr. Murty was quoted by the Journal as saying. On January 7, 2009, Satyam Chairman Ramalinga Raju resigned after saying he manipulated the company's accounts. Specifically, Mr. Raju said that as of September 30, 2008, the company's balance sheet carries: (1) inflated (non existent) cash and bank balances of 50.40 billion rupees (US$1.04 billion) (as against 53.61 billion reflected in the books); (2) an accrued interest of 3.76 billion rupees which is non existent; (3) an understated liability of 12.30 billion rupees on account of funds arranged by Mr. Raju; and (4) an overstated debtors position of 4.90 billion rupees (as against 26.51 billion reflected in the books). Mr. Raju's confession prompted investigations into the company by different entities including Andhra Pradesh state police, the U.S. Securities and Exchange Commission and SEBI. Several groups also considered filing class action suits against the company. A three-member board was subsequently created by the government which appointed KPMG and Deloitte Touche Tohmatsu for re- evaluation of the software company's books. Mr. Raju was later found to have invented more than one quarter of Satyam's workforce and used fictitious names to siphon Rs200 million (US$4.1 million) a month out of the company, The Financial Times said in a report last month. About Satyam Headquartered in Secunderabad, India, Satyam Computer Services Limited (BOM:500376) -- http://www.satyam.com/-- is a global information technology (IT) services provider, offering a range of services, including systems design, software development, system integration and application maintenance. It offers a range of IT services to its customers, including application development and maintenance, consulting and enterprise business solutions, extended engineering solutions and infrastructure management services. Satyam BPO Limited (Satyam BPO), a majority-owned subsidiary of the Company, is engaged in providing business process outsourcing (BPO) services. Satyam operates in two segments: IT services and BPO services. On January 4, 2008, the Company acquired Nitor global Solutions Ltd. On April 4, 2008, it acquired Bridge Strategy Group LLC. In November 2008, it announced the take over of Motorola Inc.'s software development centre in Malaysia. * INDIA: Sees Lower Budget Deficit in March 2010 ------------------------------------------------ India's budget deficit will narrow to 5.5 percent of gross domestic product by March 31, 2010 from an estimated 6 percent in the current fiscal year, Bloomberg News reports citing Foreign Minister Pranab Mukherjee during presentation of interim budget in parliament in New Delhi on Monday. The report notes the interim budget didn't contain any tax changes. Minister Mukherjee, as cited by the news agency, said "constitutional propriety" demanded the government didn't announce new tax rates or policies in the interim budget. The report relates the Minister noted the statement was aimed at obtaining parliamentary approval for spending in the first four months of the next fiscal year starting April 1. General elections may be held in April and May and soon thereafter the new government will unveil the budget for the remaining eight months of the year ending March 31, 2010, the report discloses. Minister Mukherjee, according to the report, said the new government must focus on reducing the budget deficit as soon as possible when the economy revives. Failure to cut the deficit "could undermine" India's economic growth prospects and put at risk its ability to continue to attract capital, James McCormack, head of Asia sovereign ratings at Fitch Ratings in Hong Kong, was cited by Bloomberg News as saying. ========= J A P A N ========= FUJI ELECTRIC: S&P Changes Outlook on 'BB+' Rating to Negative -------------------------------------------------------------- Standard & Poor's Ratings Services revised to negative from stable the outlook on its 'BB+' long-term corporate credit rating on Fuji Electric Holdings Co. Ltd. The outlook revision reflects a substantial weakening in the company's earnings, due mainly to a rapid decline in demand for electronic devices and electric systems. It also represents a deterioration of the company's debt-to-capital structure stemming from weakened profitability and structural reform-related losses. At the same time, Standard & Poor's affirmed the 'BB+' long-term corporate credit and the 'BBB-' long-term senior unsecured debt ratings on the company. On Feb. 13, 2009, Fuji Electric made substantial downward revisions to its consolidated earnings forecast for fiscal 2008 (ending March 31, 2009). The company now anticipates total sales of JPY760 billion (a 10.6% year-on-year drop), compared with the previously projected JPY850 billion. Operating income was previously projected at JPY10 billion, yet the company now anticipates an operating loss of JPY22 billion (against an operating profit of JPY35.9 billion in fiscal 2007). Similarly, Fuji Electric now expects a JPY70 billion net loss (against a JPY16.8 billion net profit in fiscal 2007), having previously forecast a net profit of JPY0. The weakness of its earnings is particularly evident in the Electronic Devices segment, which specializes in the production of power semiconductors and hard- disk media, and the Energy & Electric Systems segment, which engages in the manufacture of factory automation machinery and control instruments. The company's level of capitalization has also substantially eroded. As of Dec. 31, 2008, its net worth decreased by about JPY93 billion compared with March 31, 2008, to about JPY170 billion, due mainly to weakened earnings and in part to losses related to structural reform. During the same period, the company's outstanding balance of net debt increased by about JPY27 billion to about JPY361 billion. The affirmation of S&P's ratings on the company reflects these factors: -- Standard & Poor's has, to an extent, already incorporated the high business risk in the Electronic Devices segment into S&P's current ratings on the company. -- S&P expects the company to secure full-year profits in its other segments. -- S&P anticipate some positive effects from the ongoing business structural reform. Fuji Electric intends to carry out restructuring measures designed to shed fixed costs while restraining capital investments. Considering these measures, Standard & Poor's believes that the company is less likely to record huge losses in the next fiscal year and beyond. Nonetheless, it seems difficult for the company to quickly improve its earnings profile, in light of the increasingly challenging business environment and global economic downturn. The ratings on the company could come under downward pressure if earnings from its Electronic Devices and Energy & Electric Systems segments further weaken, if the slump in business conditions continues for a prolonged period, or if the positive effects on its earnings and financial profile from the restructuring measures and the efforts to restrain capital expenditures prove to be limited. Conversely, if the company demonstrates its ability to speedily improve profitability at the Electronic Devices and Energy & Electric Systems segments, or if the company comes up with large-scale financial improvement measures, this could precipitate upward movement in the outlook or a rating revision. However, in light of the challenging business environment, which S&P expects to continue for some time, the possibility of this scenario actually happening is slim, as the prospects for quick profit recovery are diminishing. The rating on the long-term senior unsecured debt is one notch higher than the corporate credit rating. This reflects the lower default risk of the company's debt than its bank loans based on the expectation for debt forgiveness by creditor banks in case of default. This unsolicited rating(s) was initiated by Standard & Poor's. It may be based solely on publicly available information and may or may not involve the participation of the issuer's management. Standard & Poor's has used information from sources believed to be reliable, but does not guarantee the accuracy, adequacy, or completeness of any information used. Ratings List Ratings Affirmed; CreditWatch/Outlook Action Fuji Electric Holdings Co. Ltd. (Unsolicited Ratings) To From -- ---- Corporate Credit Rating BB+/Negative/-- BB+/Stable/-- Senior Unsecured (8 issues) BBB- LOPRO CORP: Seeking Up to JPY20 Billion in Public Funding --------------------------------------------------------- Lopro Corp. plans to apply for a proposed government program aimed at providing public funds for companies with depleted capital, tradingmarkets.com reports citing Kyodo News. According to the report, Lopro President Masahiro Maeda said the company is considering accepting public funds worth JPY10 billion to JPY20 billion. "An infusion of public money to our company would be meaningful if we are to rescue minor companies that larger financial institutions do not dare lend money to," the report quoted Mr. Maeda as saying. The report says Lopro is also aiming to use the funds to bolster its capital base as its business has been badly hurt following demands by borrowers for the reimbursement of overpayments made under excessive interest rates. Lopro Corporation is a Japan-based company engaged in the provision of financial loan services. Lopro is involved in the provision of lending services and discount of commercial bill services, as well as the leasing services of real estate and the lease guarantee services. It principally offers its services to small- and medium-sized companies, as well as small-scale businesses. Its major products include commercial bill discounts, as well as unsecured loans on notes and deeds. The Company has one subsidiary. * * * Lopro Corporation incurred three consecutive net losses of JPY29.12 trillion, JPY23.98 trillion and JPY23.46 trillion for the years ended March 31, 2008, 2007 and 2006. * JAPAN: Economy Shrinks 12.7% on Falling Exports, Rising Yen ------------------------------------------------------------- Japan's economy shrank 12.7% on an annualized basis in the October-to-December period, or 3.3% from the previous quarter, Chris Oliver at MarketWatch reports citing preliminary data released Monday by the Cabinet Office. The decline, the report relates, was the biggest since a 13.1% annualized contraction in the January-to-March period in 1974. The report discloses in its outlook report on Jan. 22, the Bank of Japan forecast that the economy would contract 1.8% in the fiscal year ending in March. In the July-to-September quarter, Japan's economy contracted 2.3% annualized, the report notes. Citing Barclays Capital economist Kyohei Morita in Tokyo, the news agency says exports and household consumption appear set to weaken throughout the current quarter, hurting spending for new factory equipment and other capital- expenditure outlays. Exports, the country's primary business, was affected by the credit crunch and exacerbated by the increase in the yen's value. According to MarketWatch, exports were down a record 13.9% on quarter, business investment fell 5.3% and private consumption eased 0.4%. "As long as exports remain weak, I don't think we can expect positive growth in Japan's GDP," MarketWatch quoted Kyohei Morita as saying. Corporate Bankruptcies As reported in the Troubled Company Reporter-Asia Pacific on Feb. 11, 2009, BBC News said data from Tokyo Shoko Research showed Japanese corporate bankruptcies rose 15.8% to 1,360 cases in January from a year earlier, the eighth consecutive monthly increase. Bankruptcies at market listed companies meanwhile hit a record high of 35 for the year to March 31, the highest since World War II, BBC News noted. Bailout As reported in the Troubled Company Reporter-Asia Pacific on Feb. 5, 2009, Bloomberg News said the Bank of Japan will buy JPY1 trillion (US$11.1 billion) of shares owned by financial institutions, less than two weeks after the bank said it will buy up to JPY3 trillion of commercial paper and consider purchasing corporate bonds. According to Bloomberg News, the central bank will purchase stocks until April 2010 and will hold the shares until at least March 2012. The bank will only buy up to 250 billion in stocks from each lender, the new agency noted. The central bank, the report related, said it will buy stocks of companies with a credit rating of BBB- and higher. To be eligible, banks will need stockholdings exceeding JPY500 billion and a "capital adequacy ratio based on international standards," BoJ said in a statement obtained by Bloomberg News. "This measure aims to act as a safety net to stabilize the financial markets," BoJ Governor Masaaki Shirakawa was quoted by Bloomberg News as saying during a press briefing in Tokyo. "It's always appropriate to prepare for the worst factors and the worst- case scenario." Bloomberg News related Gov. Shirakawa said the plan isn't necessarily focused on boosting the stock market, rather, the central bank is concerned that banks will become reluctant to lend toward the fiscal year end, when companies settle accounts, out of fear that declining stock values will deplete their capital. On Feb. 16, 2009, the Associated Press said media reports over the weekend said Japan may be considering additional measures to shore up its economy with fresh spending likely to top US$109 billion. ========= K O R E A ========= * KOREA: Firms to Cut 2009 Spending, Looming Recession Seen ----------------------------------------------------------- Corporate capital spending in Korea will fall 2.5 percent this year from the same period a year ago as the economy heads for its first recession in 11 years, The Korea Herald reports citing survey data obtained by Yonhap News Agency. According to the Herald, citing the poll of the nation's top 600 firms by revenue, the Federation of Korean Industries said capital investment will decline to 86.7 trillion won, marking the first annual contraction in eight years. Particularly, companies specializing in semiconductors, flat-panel displays and shipbuilding considered cutting their capital expenditures by 42.5 percent, 40.9 percent and 26.5 percent, respectively, the federation said as cited by the Herald. Economy to Shrink Reuters reports a senior official at Standard & Poor's said Monday the rating agency forecasts South Korea's economy will contract by about 3.5 percent this year. Late last month, S&P had a zero growth forecast for the country. Missed Bond Sale Target Bloomberg News reports South Korea failed to meet its target at an auction of 10-year bonds for a second consecutive month on concern that the nation will increase debt sales to fund stimulus spending. The report relates Deputy Finance Minister Noh Dae Lae said Feb. 12 South Korea has already allocated KRW51 trillion in tax cuts and infrastructure projects to shore up the economy, and the government needs to increase its budget spending to revive growth. According to the report, the country's finance ministry said South Korea raised KRW584 billion (US$415 million) at a Feb. 16 sale, less than the KRW800 billion targeted, after investors offered to buy KRW604 billion. The securities were sold at an average yield of 5.2 percent, higher than the 5.1 percent the market expected, the news agency cited Kim Do Sung, a futures trader with PB Futures Co in Seoul, as saying. "The market has shown little interest in longer-dated debt," Mr. Kim said as quoted by Bloomberg News. "The trend may continue for a while as concern about oversupply lingers." The report states investors are avoiding long-term securities as governments fund extra spending by increasing debt sales. Asian nations have pledged an additional US$685 billion over the next five years to support growth after recessions in the U.S., Europe and Japan caused exports in the region to collapse, the report says. Bloomberg News recalls in a Jan. 19 auction, the Korean government sold KRW426 billion of similar-maturity debt, failing to raise a planned KRW800 billion. =========== K U W A I T =========== GULF INVESTMENT: Moody's Slashes Financial Strength Rating to 'D' ----------------------------------------------------------------- Moody's Investors Service downgraded the financial strength rating of Gulf Investment Corporation to D from D+. The D rating now maps to a Baseline Credit Assessment -- one of the company's key rating inputs under Moody's methodology for government-related issuers -- of 12, down from 11 (on a scale of 1 to 21, where 1 reflects the lowest level of risk). Consequently, Moody's downgraded GIC's long-term and short-term deposit ratings to Baa2/ Prime-2 from A3/Prime-1 and its senior unsecured debt rating to Baa2 from A3. All of GIC's ratings were placed on review for possible further downgrade, reflecting the company's ongoing high balance-sheet exposure to market risk, which, under the current volatile conditions, could lead to a further erosion of its already weakened capital base, particularly if poor global market conditions persist. The rating action has been prompted by the high market risk that the company has built up relative to its capital base and the increased volatility in its earnings, which are weighing on its ratings and challenging its business model. "In recent years, GIC's business model has led it to grow its equity investments, hedge funds and structured products. Given the recent dire performance of such instruments, necessary provisions and asset write-downs are inevitably leading to a material erosion of the company's capitalization," explains Stathis Kyriakides, AVP-Analyst and lead analyst at Moody's for GIC. At the same time, within the context of the global credit crunch, fluctuating and widening yields, as well as the deterioration in corporate issuers' credit standing (reflected in rating downgrades) are likely to have also resulted in mark-to-market write-downs and/or trading losses in GIC's bond portfolio. Moody's recognizes the company's efforts to manage its risks by diversifying its portfolio of financial instruments, in terms of both geographies and instrument types. However, correlations under current extreme market stresses have converged, causing a rapid deterioration in the company's performance. In addition, given GIC's very limited business diversification and narrow customer franchise, it lacks revenue streams unrelated to the financial markets' performance capable of generating sufficient income to buffer its capital base from market-related write-downs and losses. The performance of the company's investments in projects and equity participations is also sensitive to market conditions and it would be difficult to realize hidden value (if any) contained in this portfolio. Moody's review will focus on: (i) the scale of GIC's recorded losses and write-downs and the impact they have had on its capitalization in relation to its risk profile, as well as its plans for raising additional capital; (ii) stress-testing the sensitivity of the company's performance and capitalization to further market-related losses/write-downs; (iii) evidence of any forthcoming shareholder support; (iv) the company's plans for steering itself through the current difficulties and its strategy for the future; and (v) developments in the financial markets. Moody's notes that the company's six GCC country shareholders (through their representatives on GIC's board of directors) have committed to subscribing to the company's US$1.1 billion rights issue. The rating agency cautions that, although completion of the capital increase is important, it would not automatically address some of the fundamental issues facing GIC, namely those of weak business diversification, narrow scope of operations and small franchise. That said, excessive delays (or retraction) on the part of any or all shareholders in paying up capital could leave the company insufficiently capitalized and could have negative rating implications. Moody's previous rating action on GIC was on 9 October 2008, when its Baseline Credit Assessment was lowered to 11 from 10 and its long-term, issuer and deposit ratings were downgraded to A3 from A2. ==================== N E W Z E A L A N D ==================== AXIOM INTERNATIONAL: Appoints Chatfield & Tietjens as Liquidators ----------------------------------------------------------------- On December 19, 2008, Peter Charles Chatfield and Stephen Rex Tietjens were appointed as liquidators of Axiom International Ltd. Only creditors who were able to file their proofs of debt by January 22, 2009, will be included in the company's dividend distribution. The Liquidators can be reached at: Peter Charles Chatfield Stephen Rex Tietjens Accru Smith Chilcott Limited, Chartered Accountants South Canterbury Finance Building, Level 5 57 Fort Street Auckland 1010 Telephone: (09) 379 8035 Facsimile: (09) 307 8892 CATRA PROPERTIES: Court Hears Wind-Up Petition ---------------------------------------------- A petition to have Catra Properties Ltd.'s operations wound up was heard before the High Court at Hamilton on Feb. 2, 2009. The Commissioner of Inland Revenue filed the petition against the company on November 20, 2008. CIVIL WORKS: Court Hears Wind-Up Petition ----------------------------------------- A petition to have Civil Works Ltd.'s operations wound up was heard before the High Court at Auckland on Jan. 30, 2009. Fletcher Steel Limited filed the petition against the company on November 12, 2008. GLOBAL VIRTUAL: Appoints van Delden and Finnigan as Liquidators --------------------------------------------------------------- On December 19, 2008, the shareholders of Global Virtual Services Network Ltd. appointed Boris van Delden and Peri Micaela Finnigan as the company's liquidators. Only creditors who were able to file their proofs of debt by February 5, 2009, will be included in the company's dividend distribution. The Liquidators can be reached at: Boris van Delden Peri Micaela Finnigan McDonald Vague, Chartered Accountants PO Box 6092, Wellesley Street Auckland 1141 Facsimile: (09) 303 0508 HEARTLAND DEVELOPMENTS: Goes Into Liquidation --------------------------------------------- Ben Heather at The Southland Times reports that Heartland Developments Wanaka Ltd, a NZ$25 million Wanaka hotel development, has gone into liquidation after a contractor called in debt. According to the report, liquidator Colin Currie said the company had simply run out of money and now owed about NZ$1 million to its financier and a further NZ$1.5 million to contractors. Mr. Currie said the liquidation was ordered by the High Court at Hamilton after one of the contractors sought to recover between NZ$200,000 and NZ$300,000 in debts, the Southland Times relates. Mr. Currie, as cited by the report, said the project was consented in April 2007, but despite a big marketing push no pre-sales could be secured and by late last year there were no investors interested. Meanwhile, the report discloses development projects everywhere are feeling the fury of the economic crisis, evident in the high number of mortgagee sales. "It's probably typical of many developments we are seeing at the moment. There are no investors, no bankers, which means there are no developers," the report quoted Mr. Currie as saying. "Development projects in the South Island, in Wanaka and Queenstown in particular, are probably as hard hit as development projects in Auckland." The Southland Times notes that there are at least eight mortgagee sales in Queenstown listed on Trade Me, including four in the Esplanade Villa complex, where the apartments are valued at more than NZ$1 million. KINGDOM RESIDENTIAL: Court Hears Wind-Up Petition ------------------------------------------------- A petition to have Kingdom Residential Housing Nelson (1999) Ltd.'s operations wound up was heard before the High Court at Nelson on Jan. 28, 2009. The Commissioner of Inland Revenue filed the petition against the company on November 5, 2008. M.F.U. HOLDINGS: Commeces Liquidation Proceedings ------------------------------------------------- M.F.U. Holdings Ltd. commenced liquidation proceedings on Dec. 16, 2008. The company's liquidator is: Peta Jill Walker PO Box 11719, Wellington Telephone: (04) 385 8628 Facsimile: (04) 385 8708 MODA PIETRA: Court Hears Wind-Up Petition ----------------------------------------- A petition to have Moda Pietra Ltd.'s operations wound up was heard before the High Court at Christchurch on Jan. 19, 2009. Parbury Building Products (N.Z.) Limited filed the petition against the company on September 10, 2008. MT VAEA: Court Hears Wind-Up Petition ------------------------------------- A petition to have MT Vaea Investments Ltd.'s operations wound up was heard before the High Court at Auckland on Jan. 28, 2009. Body Corporate No. 211997 filed the petition against the company on November 6, 2008. NEXA NEW ZEALAND: Court Hears Wind-Up Petition ---------------------------------------------- A petition to have Nexa New Zealand Ltd.'s operations wound up was heard before the High Court at Auckland on Feb. 4, 2009. Compuvest Corporation filed the petition against the company on November 18, 2008. FISHER & PAYKEL: May Receive Gov't. Bail Out, PM John Key Says -------------------------------------------------------------- Adrian Bathgate and James Thornhill at Reuters report that Fisher & Paykel Appliances Ltd's shares fell as much as 42 percent to a record low on Monday, Feb. 16, after the company slashed its profit forecast and said it was looking to raise capital to pay off mounting debts. According to various reports, the surprise announcement has prompted New Zealand Prime Minister John Key to float the idea of a possible government bail-out. "If that meant the loss of jobs and the collapse of an iconic company, that would be unacceptable to me," Reuters quoted Prime Minister Key as saying on TV3's Sunrise programme. Prime Minister John Key, Reuters relates, said it was premature to discuss options for supporting Fisher & Paykel Appliances, but the government would not rule out taking an equity stake in the company, or acting as a banker. According to Reuters, Fisher & Paykel Appliances chief executive John Bongard said he had held talks with the Prime Minister on Monday, and outlined that availability of credit was the main issue facing the company. "The issue is that there aren't many lenders out there that are prepared to increase their borrowings by that much," Mr. Bongard told Radio New Zealand. Shares in Fisher & Paykel appliances bounced 10.8 percent, or 7 cents, to NZ$0.72 on Tuesday, Feb. 17, recovering from Monday's trough of NZ$0.58, the lowest since the company was created in 2001, according to Reuters. Reuters says the company expects a normalised net profit of NZ$25 to NZ$30 million (US$13 - $15.5 million) in the year to end-March, down from NZ$54.2 million in the previous year. About Fisher & Paykel Fisher & Paykel Appliances Holdings Ltd. -- http://www.fisherpaykel.com/-- is a New Zealand-based company, which has two principal areas of business: Appliance manufacturer, distributor and marketer (Appliances Group) and Financial services in New Zealand (Finance Group). The principal activity of the Appliances business is the design, manufacture and marketing of household appliances. Its major markets are New Zealand, Australia, North America and Europe. The Appliances business has manufacturing operations in New Zealand, Australia, North America, Italy and Thailand. The Finance business is a provider of retail point of sale consumer finance (including the Farmers Finance Card), insurance services, and rental and leasing finance. FISHER & PAYKEL: Slashes Profit for FY2009; May Raise Capital ------------------------------------------------------------- Fisher & Paykel Appliances Holdings Ltd disclosed trading update to the New Zealand Stock Exchange on Feb. 16, 2009: Fisher & Paykel said that subsequent to reporting the Interim Result on November 13, 2008, unprecedented and difficult trading conditions have been experienced in all markets. Slowing consumer demand as a direct result of the Global Credit Crisis has significantly impacted sales, particularly late in the second fiscal half. Slow Christmas sales and very weak macro conditions have led to a reduction in revenue for all markets. In addition competition for volume has also impacted margins. New Zealand and Australia In New Zealand, the overall market contracted during the current April-January period by 15% in unit terms, when compared with the previous corresponding period. The deepening recession in the second half of the year resulted in the market size reducing 19% in unit terms between October 2008 and January 2009, over the previous corresponding period. As consumers' preference has moved from the top end of the market towards lower priced and less featured products, the Elba brand has performed well, gaining market share in New Zealand. Australian sales levels have reduced in line with falling consumer confidence. The company's market shares have declined in some product categories partly due to the price increase implemented in September and October last year, while competitors chose to defer increasing prices until early in the 2009 calendar year. Similar to the New Zealand market, this has been compounded by consumers increasingly preferring lower priced products. North America The North American market remained in severe decline. The market has noticeably receded since the last release, with the Oct-Dec 08 quarter falling 18% when compared with the previous corresponding period. The Fisher & Paykel and DCS brands continue to perform well against the market. Combined revenue for these 2 brands in the fiscal year to date was down 6.1% on the previous corresponding period, reflecting resilience in the marketplace and an increased product portfolio. Ongoing pressure at the high end though is hindering not only existing sales growth but also sales levels of new product introductions including the recently launched CoolDrawer refrigerator. With intense market competition continuing and competitors fighting to retain sales volumes, margins have been put under increasing pressure. Europe European sales suffered similarly, as sales slowed, particularly in Great Britain. The weakening of the British pound against the Euro also contributed to weakening sales levels and eroded margins. Rest of World The weakening of the NZD against the USD has assisted revenues during the second half but business remains challenging in all markets. This currency movement has also helped make the brand more attractive to overseas distributors. General Comments To address the immediate issues of declining demand in global markets and the trend for consumers to trade down in their purchase decision, the Company said it is committed to introducing a second tier brand to some of its major markets. The success experienced with Elba as an entry point brand in New Zealand, has instilled confidence that a similar offering would succeed in other markets, given the current economic climate. This strategy will be quickly replicated opening the way for greater opportunity to the present consumer preference purchase direction. In a move to further expand its reach into the North American market, the Company will launch a range of products under the Elba brand exclusively distributed through Sears Outlet stores, commencing in April. The Elba brand will be manufactured in the Company's North American manufacturing facilities and sold in Sears outlet stores nationally. Fisher & Paykel is currently in negotiation with Australian customers for introduction of the Company's entry point Elba branded products. Production Facilities The consistent results being achieved from the new manufacturing facility in Thailand are exceeding initial saving expectations, the company said. The Rayong facility in Thailand is now fully functioning and producing Laundry products for the Australian, New Zealand, Asian and Rest of World markets. The Electronics factory, which was relocated from Auckland, New Zealand last year, is now fully commissioned within the facility and is providing components direct to line in Thailand as well as to our other manufacturing sites globally. The second factory, being built adjacent to the Laundry plant for housing the Brisbane refrigeration line, is on time and nearing completion. The Reynosa facility in Mexico is now manufacturing initial release quantities of the new DishDrawer Tall product for introduction into the North American market in March. The inventory required for this launch will be completed by late February, at which time the factory will have the capability to manufacture all versions of DishDrawer for global markets including New Zealand and Australia as well as Europe. Production rates will increase as demand requires. The Range & Dishwasher facility in Dunedin, New Zealand, is now in the final stages of shutdown. The freestanding range line, along with a limited number of built in ovens and cooktops will continue to be manufactured through until April, at which time all production will transfer to the Italian and Mexican plants. The site in Mosgiel, Dunedin, which has been sold to the Fonterra Co- operative Group, will be vacated by June 30, 2009. The Cleveland refrigeration factory in Brisbane, Australia is on schedule for closure in early April. The inventory build to allow for the relocation is on target and the shipment of the plant and equipment will commence shortly after closure. The North American Laundry production facility in Clyde, Ohio has been under recent review. With falling global demand, washer production requirements for North America will now be consolidated and wholly supplied out of the Thailand factory in Rayong. The company expects the factory efficiency gains from the increased production, combined with lower labour and material costs, will more than offset the increased cost of freight, duty and working capital. The additional production required will be accommodated using the existing equipment in Thailand. The North American washer line will remain closed on the Clyde site until such time as market conditions improve. The SmartLoad dryer line, a facility producing a product designed specifically for the North American market will be relocated to the Reynosa facility in Mexico. This will consolidate all North American finished products manufacturing onto a single site thereby optimising freight and warehousing efficiencies. These Laundry production lines will discontinue manufacturing at Clyde during the second quarter 2009. The motor line will remain on the Clyde site and continue supplying components to Whirlpool Corporation located near by. Costs associated with implementing the global relocation of manufacturing facilities are now expected to exceed the previous guidance by $5 million - $10 million, partly due to currency effects. Cost Cutting The Company has recently initiated a number of internal cost down measures in response to the current global economic conditions. These include an immediate salary reduction for the CEO of 7.5% and Executive staff of 5%. The Company is finalising a scheme with all salaried employees whereby staff will take one rostered day off a month. They will have the option to substitute this day with annual leave, thereby ensuring continuity of income. These new initiatives are over and above the ongoing cost down programmes currently operating within the business. Raw Materials Raw material pricing has reduced significantly over the past few months as global demand lessens. Spot rates for plastics, chemicals and copper are considerably lower than 6 months ago. Steel prices have also fallen recently and will be reflected in forward contracts for deliveries commencing April 2009. Finance The Finance business continues to trade satisfactorily given the volatile economic conditions it is operating in. Notwithstanding increasing bad debts that have eroded earnings over the past 4 months, the cost to income ratio remains within budget and on forecast at 42%. Net receivables as at January 31, 2009 exceeded that of the previous year, reflecting the continued growth of both Q Card and Farmers Finance Card. Participation in the Crown Deposit Guarantee Scheme has allowed the Finance business to significantly increase retail deposits by over $100 million and reduce reliance on Bank funding facilities. In addition, reinvestment rates on retail debentures have been strong since November 2008 and for January 2009 exceeded 90%. The Finance business has maintained a sound diversified funding base. Committed, undrawn Bank facilities at January 31, 2009 exceeded $275 million. In addition, the retail debenture book now exceeds $195 million, providing significant funding to the finance business during uncertain times. As a result of recent regulatory changes and proposed regulatory changes introduced by the Reserve Bank of New Zealand, the Finance business will be seeking a credit rating with an approved credit rating agency and will be subject to minimum capital ratio requirements. The best current estimate is a requirement for approximately $50 million of additional capital some time in early 2010. Balance Sheet Gearing The Group has substantial investments in appliance manufacturing operations in North America, Italy and Thailand which are in the main debt funded in US dollars, Euro and Thai Baht respectively. Due to the rapid depreciation in the value of the New Zealand dollar, foreign currency denominated debt has increased in New Zealand dollar terms by approximately $122 million since March 31, 2008. As at January 31, 2009, total bank debt was $512 million and the deferred consideration in respect of the Reynosa facility was approximately $49 million. As a result of this and the temporary peak of inventory build required as part of the Appliances Global Manufacturing Strategy, the debt to debt plus equity ratio for the Appliances business has increased beyond the Group's target range of between 25% and 35%, to 43% as at 31 January 2009. Debt is projected to be at approximately $570 million at March 31, 2009, after which levels will be progressively reduced by approximately $230 million over the next 9 months as the relocation stock build is sold out, working capital levels are realigned to the current sales levels and properties are sold. In light of the increase in the Group's debt, the Directors believe that it is prudent that the Group strengthen its balance sheet and are therefore considering a range of alternatives. These include advancing the marketing of the 14.5 hectare site at East Tamaki, Auckland as a sale and lease back arrangement. The Company is continuing to market its Cleveland site in Australia and several parties have expressed interest. Due to the adverse financial market conditions, the Company will not proceed with a Capital Note issue. However, the Company is reviewing the Group's capital structure and examining alternative sources of capital. As part of this review, the Directors are considering the merits of issuing equity, including to a strategic cornerstone investor. Group Outlook As consumer demand slows in all markets, the Company said it has been taking proactive measures to address the economic environment it is now operating in. For the Finance business, as the impact of lower interest rates permeates through the economy, customers will gain relief from the cost of servicing home mortgages and while there will be ongoing uncertainty, the Company expects consumer confidence will gradually improve. This period of adjustment is likely to take some time, requiring a continuation of intensive credit management, operating cost control, and security in funding. For the Appliances business, the Company believes it is well positioned to take advantage of any improvement in economic conditions. The near completion of its Global Manufacturing Strategy, first announced in April 2007, will ensure the Company will be able to produce whiteware products on a more competitive basis. The shift of manufacturing facilities to lower cost countries has progressed well, with resulting savings ahead of expectations. The remaining relocations to Thailand, Mexico and Italy, are expected to be completed on time. Full production from all offshore facilities is likely to be on stream by the commencement of the second half 2009. These moves will deliver significantly lower manufacturing costs than have applied in the past and will offer extra capacity capability without significant additional cost. Appliances is looking to expand its distribution channels and brand offerings in Australia and North America. The release of a second tier brand will present opportunities for increased sales levels and distribution exposure. The implementation of this arrangement will be executed in a short time frame within the existing manufacturing and warehouse framework. Overall reductions in raw material prices are expected to begin to flow through in the first quarter of the 2009/10 financial year. This will to some extent offset contracting margins being experienced in all markets. Plastics cost decreases of between 30% � 50% are currently being observed in the market. Normalised Group net profit after tax is projected at $25 million to $30 million for the current 2008/09 financial year. Subject to the completion of the Cleveland land sale, Group net profit after tax and costs associated with the Global Manufacturing Strategy, is projected to be approximately break-even. The Company is confident that following the completion of the Global Manufacturing Strategy and the associated restructuring processes, it will be well positioned to manage current market conditions and benefit from any improvement in global economies. The Company is pleased that these relocations have thus far been completed seamlessly during a time of economic turmoil and will be fully functional and will enable the Company to seize upon any growth opportunities that present themselves in the future. Potential Equity Capital Raising The Directors of the Company are reviewing the Group's capital structure and examining a range of potential sources of capital. If an equity raising is conducted, the Company expects it would include a pro rata entitlement offer to eligible shareholders. The securities issued under any pro rata entitlement offer would be ordinary shares, having the same rights as the existing ordinary shares of the Company. The proceeds would be used to repay debt. The Directors expect to provide a further update on the timing of any pro rata entitlement offer to investors and the market in early March. About Fisher & Paykel Fisher & Paykel Appliances Holdings Ltd. -- http://www.fisherpaykel.com/-- is a New Zealand-based company, which has two principal areas of business: Appliance manufacturer, distributor and marketer (Appliances Group) and Financial services in New Zealand (Finance Group). The principal activity of the Appliances business is the design, manufacture and marketing of household appliances. Its major markets are New Zealand, Australia, North America and Europe. The Appliances business has manufacturing operations in New Zealand, Australia, North America, Italy and Thailand. The Finance business is a provider of retail point of sale consumer finance (including the Farmers Finance Card), insurance services, and rental and leasing finance. VIP DAIRY: Court Hears Wind-Up Petition --------------------------------------- A petition to have VIP Dairy Ltd.'s operations wound up was heard before the High Court at Whangarei on Feb. 9, 2009. ANZ National Bank Limited filed the petition against the company on November 10, 2008. ================= S I N G A P O R E ================= ARIEL SINGAPORE: Creditors Hold Meeting --------------------------------------- The creditors of Ariel Singapore Pte Ltd met on February 27, 2009, and receives a full statement of the company's affairs together with a list of creditors and the estimated amount of their claims. COCOWOODS INTERNATIONAL: Members to Hold Final Meeting on March 12 ------------------------------------------------------------------ The members of Cocowoods International Pte. Ltd. will hold meeting on March 12, 2009, at 3:00 p.m., for the purposes stated in Section 308 of the Companies Act, Cap. 50. The meeting will be held at 1 Scotts Road, #21-07/08/09 Shaw Centre, Singapore 228208. CONDUIT MANAGEMENT: Member to Hold Final Meeting on March 12 ------------------------------------------------------------ The member of Conduit Management Services Pte Ltd will hold meeting on March 12, 2009, at 11:00 a.m., for the purposes stated in Section 308 of the Companies Act, Cap. 50. The meeting will be held at 1 Scotts Road, #21-07/08/09 Shaw Centre, Singapore 228208. HO SHING: Court Enters Wind-Up Order ------------------------------------ On January 5, 2009, the High Court of Singapore entered an order to have Ho Shing Construction Co. (Pte.) Ltd's operations wound up. Aw Chye Leng filed the petition against the company. The company's liquidators are: Chee Yoh Chuang Lim Lee Meng RSM Chio Lim LLP/Stone Forest Corporate Advisory Pte Ltd 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 SYDUS PTE: Court to Hear Wind-Up Petition on February 20 -------------------------------------------------------- A petition to have Sydus Pte Ltd's operations wound up will be heard before the High Court of Singapore on February 20, 2009, at 10:00 a.m. AN Steel Corp filed the petition against the company on Jan. 24, 2009. The Petitioner's solicitors are: Messrs. Joseph Chen & Co. No. 101 Upper Cross Street #05-33 People's Park Centre Singapore 058357 * SINGAPORE: Exports Fell 3.2% in January on Weak Demand -------------------------------------------------------- Declining demand due to the global financial crisis took a beating on Singapore's exports last month. The city-state's exports fell a seasonally adjusted 3.2 percent to SG$10.0 billion (US$6.6 billion) in January from December, The International Herald Tribune reports citing Trade and Industry Ministry figures. According to Bloomberg News, in January, Singapore's: --- Non-oil domestic exports dropped 34.8 percent from a year earlier, after contracting 20.8 percent in December; --- Electronics shipments plunged 38.4 percent from a year earlier, the 24th consecutive drop, following a 25.4 percent decline in December; --- Non-electronics shipments, which include petrochemicals and pharmaceuticals, fell 32.4 percent from a year earlier; and --- Pharmaceutical shipments dropped 4.5 percent. Bloomberg News relates Singapore, whose exports industry account for two-thirds of its gross domestic product, said last month it expects overseas shipments to fall as much as 11 percent in 2009 after a 7.9 percent decline last year. Singapore in October became the first Asian economy to enter recession, according to AFP. The Herald discloses Singapore's economy contracted a seasonally adjusted, annualized 16.9 percent decline in the fourth quarter. Economic growth, the Herald notes, slowed to 1.5 percent last year from 7.7 percent in 2007. The government expects GDP to contract as much as 5 percent this year, the Herald says. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 26, 2009, Reuters said Singapore announced a SG$20.5 billion (US$13.74 billion) stimulus package to help companies and save jobs along with a 1 percentage point cut in corporate tax. According to Reuters, the package, which comes on top of regular government spending, included SG$5.1 billion on training and other measures to save jobs and SG$5.8 billion to stimulate bank lending. The resilience package won't get the country "out of recession" but "will help avert an even sharper downturn, and more lasting damage to the economy," Finance Minister Tharman Shanmugaratnam was quoted by Reuters as saying as he unveiled the 2009/2010 budget. =========== T A I W A N =========== PROMOS TECHNOLOGIES: Banks Agree on NT$3 Billion Loan ----------------------------------------------------- A consortium of Taiwanese banks have tentatively agreed to provide a new NT$3 billion (US$88.23 million) loan to ProMOS Technologies Inc, AFP reports citing Bank of Taiwan, the lead bank in the eight creditor banks syndicate. According to the report, the state Bank of Taiwan said "they had reached a tentative agreement to grant a NT$3 billion loan to ProMOS," -- two billion dollars short of the amount sought by the company. The agreement, the bank said, requires final approval of the banks' separate boards, AFP relates. Without the loan, AFP notes, it was feared that ProMOS would not have sufficient funds to pay its bondholders and sustain operations, leading to a possible default. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 20, 2009, the Taipei Times said ProMos was facing mounting pressure to repay US$330 million in overseas corporate debt that matured on Feb. 14. For the first nine months of 2008, ProMOS lost NT$22.5 billion amid a slump in demand for memory chips. The company reported a net loss of NT$7.32 billion for the year ended December 31, 2007. About ProMOS ProMOS Technologies Inc. -- http://www.promos.com.tw-- is a semiconductor memory solution provider in Taiwan. The Company is principally engaged in the research, design, development, manufacture and sale of synchronous dynamic random access memories (SDRAMs), as well as the related import and export businesses. The Company provides 64 megabytes (Mb), 128 Mb and 256Mb SDRAMs, 128Mb, 256Mb and 512Mb double data rate (DDR) SDRAMs and others. The Company distributes its products within the domestic market and to overseas markets. As of December 31, 2007, the Company had six wholly owned subsidiaries, including United Memories, Inc, ProMOS Technologies Pte. Ltd, Flourishing Moment Limited, ProMOS Technologies Japan Limited and ProImage Technologies Inc. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Feb. 25-27, 2009 AMERICAN BANKRUPTCY INSTITUTE Valcon Four Seasons, Las Vegas, Nevada Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 2, 2009 ASSOCIATION OF INSOLVENCY AND RESTRUCTURING ADVISORS Chicago Regional Conference Union League Club of Chicago, Chicago, Illinois Contact: 1-541-858-1665; http://www.airacira.org/ Mar. 13, 2009 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Beverly Wilshire, Beverly Hills, California Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 14-16, 2009 AMERICAN BANKRUPTCY INSTITUTE Conrad Duberstein Moot Court Competition St. John's University School of Law, New York City Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 1-4, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 16-19, 2009 COMMERICAL LAW LEAGUE OF AMERICA 2009 Chicago/Spring Meeting Westin Hotel on Michigan Ave., Chicago, Ill. Contact: (312) 781-2000; http://www.clla.org/ Apr. 17-18, 2009 NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES NABT Spring Seminar The Peabody, Orlando, Florida Contact: http://www.nabt.com/ Apr. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference John Adams Courthouse, Boston, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 27-28, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org Apr. 28-30, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org May 1, 2009 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners Alexander Hamilton Custom House, New York City Contact: 1-703-739-0800; http://www.abiworld.org/ May 4, 2009 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference New York Marriott Marquis, New York City Contact: 1-703-739-0800; http://www.abiworld.org/ May 7-8, 2009 RENASSANCE AMERICAN MANAGEMENT, INC. 6th Annual Conference on Distressted Investing - Europe The Le Meridien Piccadilly Hotel, London, U.K. Contact: 1-903-595-3800 or http://www.renaissanceamerican.com/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ May 12-15, 2009 AMERICAN BANKRUPTCY INSTITUTE Litigation Skills Symposium Tulane University, New Orleans, La. Contact: http://www.abiworld.org/ May 14-16, 2009 ALI-ABA Chapter 11 Business Reorganizations Langham Hotel, Boston, Massachusetts Contact: http://www.ali-aba.org June 11-14, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ July 29-Aug. 1, 2009 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Westin Hilton Head Island Resort & Spa, Hilton Head Island, S.C. Contact: http://www.abiworld.org/ Aug. 6-8, 2009 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Conference Hotel Hershey, Hershey, Pa. Contact: http://www.abiworld.org/ Sept. 10-11, 2009 AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 2, 2009 AMERICAN BANKRUPTCY INSTITUTE ABI/GULC "Views from the Bench" Georgetown University Law Center, Washington, D.C. Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Oct. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Paris Las Vegas, Las Vegas, Nev. Contact: http://www.abiworld.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 29-May 2, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2010 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Conference The Ritz-Carlton Amelia Island, Amelia, Fla. Contact: http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Pius Xerxes V. Tovilla, Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante, Marie Therese V. Profetana, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***