/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090324.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 Tuesday, March 24, 2009, Vol. 12, No. 58 Headlines A U S T R A L I A AUSTRALIAN DISCOUNT: Receivers Sold Business; 10,000 Jobs Saved FORTESCUE METALS: Probe on Valin's Stake Purchase Offer Extended OZ MINERALS: Expects Ruling on China Minmetals's Bid This Month STORM FINANCIAL: Client Book Sale To Proceed Amid Liquidation C H I N A CHINA GLASS: Moody's Reviews 'B1' Corporate Family Rating ZTE CORP: 2008 Revenue Jumps 27.37%; Secures US$15BB Credit Line H O N G K O N G CHAU TAI: Commences Dissolution Proceedings DOLCE VITA: Creditors' Proofs of Debt Due on April 21 FRESH MIND: Members to Receive Wind-Up Report on April 21 GROOVER LIMITED: Creditors' Proofs of Debt Due on April 23 HONG KONG RESIDENTS: Creditors' Proofs of Debt Due on April 20 HUGO CHOICE: Creditors' Proofs of Debt Due on April 22 JACK MOON: Placed Under Voluntary Wind-Up JADA BIOTECH: Placed Under Voluntary Wind-Up JING GANG: Creditors' Proofs of Debt Due on April 20 NEW PROFIT: Creditors' Proofs of Debt Due on April 22 PACIFIC HARVEST: Creditors' Proofs of Debt Due on April 23 PIZZA PIZZA: Creditors' and Members' Meeting Set for April 30 SGA (HK) ET AL: Creditors and Contributories to Meet on April 22 TAI LIN ET AL: Court Enters Wind-Up Order TWIN FORTUNE: Creditors' Proofs of Debt Due on April 22 VINCELECTA INTERNATIONAL: Placed Under Voluntary Wind-Up I N D I A AIR INDIA: May Get Syndicated $1 Bil. Loan to Buy More Aircrafts BARNALA STEEL: CRISIL Assigns 'BB+' Rating on Various Bank Loans CITIGROUP INC: Won't Sell HDFC Unit in India COSMIC FERRO: Fitch Assigns 'BB+' National Long-Term Rating KHOKHAR INFRASTRUCTURE: CRISIL Rates Rs.50MM Cash Credit at 'BB+' MITTATEX EXPORTS: Weak Liquidity Prompts CRISIL 'P4' Ratings PREM MOTORS: CRISIL Assigns 'BB' Ratings on Various Bank Loans RAMA KRISHNA: Weak Financial Risk Profile Cues CRISIL 'B+' Ratings SAINSONS PULP: CRISIL Puts 'BB' Rating on Rs.322.5 Mln. Term Loan SAMRIDDHI EDUCATIONAL: CRISIL Rates Rs.168MM Term Loan at 'B+' SANGHVI & SONS: CRISIL Rates Rs.200.0 Mln Packing Credit at 'P4' I N D O N E S I A CENTRAL PROTEINAPRIMA: Makes New Bid for Rights Issue EXCELCOMINDO PRATAMA: Shareholders Approve US$400-Mil. Loans K E N Y A PAN AFRICAN: Placed in Receivership; 1,500 Permanent Jobs Affected K O R E A DAEWOO ELECTRONICS: Reduces Staff by 40%, Exits Two Business Units * KOREA: SMEs Loan Delinquency Ratio Rises to 45-Mo. High in Feb. N E W Z E A L A N D ATLAS SECURITIES: Liquidators Probe Related Party Advances COMPASS CAPITAL: Calls In Receivers HANOVER FINANCE: Reaches Settlement With Developer Over Loan P H I L I P P I N E S FORD MOTOR: Phil. Unit's Export Down by 15% in January - February PHILIPPINE LONG: Fitch Affirms Issuer Default Rating to 'BB+' S I N G A P O R E JACKLIE CONSTRUCTION: Creditors' Proofs of Debt Due on April 3 LANDMARK ENGINEERING: Creditors' Proofs of Debt Due on April 3 LTF ENGINEERING: Court to Hear Wind-Up Petition on April 3 SINGAPORE AIRPORT: Creditors' Proofs of Debt Due on April 20 THIS MOBILE: Court Enters Wind-Up Order S O U T H A F R I C A PAMODZI GOLD: Orkney Mine Under Provisional Liquidation S R I L A N K A FINANCE COMPANY: Fitch Cuts National Long-Term Rating to 'BB+' U N I T E D A R A B E M I R A T E S AMLAK FINANCE: U.A.E. Favors Merger Over Liquidation TAMWEEL PJSC: U.A.E. Doesn't Favor Liquidation, Bloomberg Says X X X X X X X X * BOND PRICING: For the Week March 16 to March 20, 2009 - - - - - ================= A U S T R A L I A ================= AUSTRALIAN DISCOUNT: Receivers Sold Business; 10,000 Jobs Saved --------------------------------------------------------------- The Advertiser reports that the receivers of Australian Discount Retail Pty Ltd has sold the company to Retail Adventures. According to the report, the sale also includes Chickenfeed, the 29-store Tasmania-based subsidiary which was not in receivership or administration. Ferrier Hodgson Partner James Stewart, as cited by the report, said the sale was great news for employees, suppliers and landlords who are seeking certainty from the process. The sale, the report relates, guarantees the 2,500 permanent and 7,500 casual jobs under ADR. The Advertiser discloses that Retail Adventures is owned by Tasmania-based Jan Cameron, the former owner of Kathmandu. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 22, 2009, The Australian said Australian Discount Retail ("ADR"), the company behind bargain retailers Go-Lo, Crazy Clark's and Sam's Warehouse, has gone into receivership. According to the Australian, a syndicate of three banks called in receiver James Stewart of Ferrier Hodgson after the company's board appointed David Lombe and Simon Cathro of Deloitte as voluntary administrators. The Australian related that ADR has debts amounting to AU$96 million. The company, the Australian said, also owes an estimated AU$105 million to trade creditors, taking its total debt position to AU$213 million, compared with gross assets of AU$270 million at the end of July last year. The ADR-owned Chickenfeed discount chain had not been placed in receivership or administration. Its 28 stores in Tasmania would continue to trade normally. ADR was formed by private equity firms Catalyst and Champ in 2005. The pair held negotiations with ADR's banking syndicate, which comprises of National Australia Bank, ANZ and HBOS in an attempt to save the business. Australian Discount Retail is a discount variety retailer in Australia with over 400 stores across the country. The business operates four brands: Crazy Clark's, Go-Lo, Sam's Warehouse and Chickenfeed. The company employs 2,700 staff. FORTESCUE METALS: Probe on Valin's Stake Purchase Offer Extended ---------------------------------------------------------------- Jesse Riseborough at Bloomberg News reports Australia's Foreign Investment Review Board will extend the review into Hunan Valin Iron & Steel Group Co. Ltd.'s planned investment in Fortescue Metals Group Ltd. by 30 days from March 25, 2009. According to the report, China's Valin proposed to purchase a 17.6 percent stake in Fortescue for AU$1.3 billion (US$895 million) as the Australian company faces a funding shortfall of AU$731 million for an expansion. The report relates Australian lawmakers has approved a probe into foreign investment laws, studying transactions by state-owned companies and sovereign wealth funds. The report recalls China last month announced US$22 billion of overseas investments in mining companies, prompting an inquiry by the Australian senate after a backlash from politicians and shareholders. About Hunan Valin China-based Hunan Valin Iron & Steel Group Co. Ltd. -- http://www.chinavalin.com/-- makes steel pipes, bars, wires, sectional products, and hot-rolled steel plates along with copper plate pipes and inner-twisted pipes. Its annual output is about 9 million tons of steel and 8 million tons of steel products; hot- rolled steel plate is the company's biggest revenue generator. Hunan Valin products are distributed in mainland China and exported throughout much of Asia as well as to the US. It was formed in 1999. In 2005, the company sold about a one-third stake in publicly listed subsidiary Hunan Valin Steel Tube & Wire Company to what is now ArcelorMittal. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited (ASX: FM) -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported consecutive net losses for the past three fiscal years. Net loss for the year ended June 30, 2008, was AU$2.52 billion, while net losses for FY2007 and FY2006 were AU$192.26 million and AU$2.15 million, respectively. OZ MINERALS: Expects Ruling on China Minmetals's Bid This Month --------------------------------------------------------------- OZ Minerals Ltd. said an Australian regulator may rule on China Minmetals Group's AU$2.6 billion (US$1.8 billion) takeover offer for the company by the end of the month, Jesse Riseborough at Bloomberg News reports. "We're hopeful of some indication from the government by the end of the month," Matthew Foran, spokesman for Melbourne- based OZ Minerals, told the news agency by phone. Bloomberg News relates the company last week said it was seeking an extension from its lenders on AU$1.2 billion in debt before a March 31 deadline. On Mar. 18, 2009, the Troubled Company Reporter-Asia Pacific, citing The Australian, reported OZ Minerals is seeking further bridging finance to cover any cash requirements that may arise during China Minmetals Group's bid period. A spokesman for the miner, as cited by Tthe Australian, said it is in talks with its existing lenders on a new facility that could be drawn on to meet any cash requirements that may emerge during the offer period. "We are seeking an interim financing arrangement just to be on the safe side," The Australian quoted the spokesman as saying. "It is a contingency plan in the event that the approval process takes longer, commodity prices come off or there is any delay in the asset sales programs." According to The Australian, the company is seeking an extension of its loans to September 15, which is two weeks after the Minmetals scheme of arrangement will terminate if it hasn't been implemented. OZ, the report said, didn't disclose the amount of interim financing it is seeking. A TCR-AP report on Mar. 2, 2009, citing Bloomberg News, said OZ Minerals received an extension to refinance its AU$1.2 billion (US$776 million) debt, clearing a hurdle for an agreed takeover by China Minmetals. In a filing to the Australian Securities Exchange, OZ Minerals said it has secured approval to extend the terms of its debt arrangements from Feb. 27 to March 31, 2009. As reported in the TCR-AP on Feb. 18, 2009, Minmetals offered to purchase all outstanding shares in OZ Minerals at a cash price of 82.5 cents per share. Bloomberg News said the extension of OZ Minerals's debt facilities is a condition of China Minmetals Group's AU$2.6 billion takeover offer. 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. STORM FINANCIAL: Client Book Sale To Proceed Amid Liquidation ------------------------------------------------------------- Kate Kachor at InvestorDaily reports that the sale of Storm Financial Limited's client book will not be affected by the firm being placed into liquidation. Citing Storm's receiver and KordaMentha partner Bill Buckby in an email to Kenyon Prendeville director Stephen Prendeville, the report says the receiver confirmed the sale of the client book would proceed. "The administrators Worrells have nothing to do with the assets of Storm, including the sale of the client book, even if they become the liquidators. ASIC's actions have nothing to do with the sale of the client book," the report quoted Mr. Buckby as saying. In late February, the InvestorDaily recalls, KordaMentha placed the client book of 10,230 Storm clients in the hands of financial planning business broking specialists Kenyon Prendeville. Mr. Prendeville, as cited by the report, said more than 60 businesses have shown serious interest in the book of clients when expressions of interest for the Storm client book closed on Friday, March 20. The Troubled Company Reporter-Asia Pacific, citing Herald Sun, reported on Mar. 20, 2009, that the Australian Securities and Investments Commission (ASIC) urgently applied to the Federal Court to put Storm Financial into liquidation. Separately, the report notes, Storm's wholly owned subsidiary, Victorian Families Retirement Investment Group, was placed in provisional liquidation on Thursday, March 19. About Storm Financial Storm Financial Limited -- http://www.stormfinancial.com.au/-- operates in the Australian wealth management industry that manages over one trillion dollars in investment fund assets for over nine million investors, distributed through investment administration providers and financial advisers. These funds are invested through different investment products and structures, including superannuation, nonsuperannuation managed funds and life insurance products. Non-superannuation managed funds, which form the majority of Storm's products, total approximately 26.5% of total investment fund assets in Australia, as of June 30, 2007. * * * As reported in the Troubled Company Reporter-Asia Pacific on Jan. 14, 2009, Storm appointed Worrells as voluntary administrators after the Commonwealth Bank of Australia Ltd (CBA) demanded debt repayment of around AU$20 million. Storm later closed its business and fired all of its 115 staff. The closure, the company's administrators said, was due to the significant reduction in Storm's income resulting in trading losses being incurred "at a rate which the company could no longer absorb." The TCR-AP, citing Sydney Morning Herald, reported on Jan. 22, 2009, that the Commonwealth Bank of Australia, Storm's largest creditor, lodged a AU$27.09 million debt claim at a first meeting of the company's creditors on January 20. According to the Herald, Administrators Worrells Solvency & Forensic Accountants said the group's remaining creditors are owed AU$51 million, plus a provision for dividends of AU$10 million. ========= C H I N A ========= CHINA GLASS: Moody's Reviews 'B1' Corporate Family Rating --------------------------------------------------------- Moody's Investors Service has put on review for possible downgrade the B1 corporate family rating and senior unsecured rating of China Glass Holdings Ltd. "The rating action is in response to China Glass' recent announcement that it is likely to experience a material decline in its profits for 2008," says Renee Lam, a Moody's Vice President and Senior Analyst. "While the magnitude of the decline is unknown at this point, Moody's is concerned that the company's debt coverage metrics -- which have been marginal for its rating and reflected in its existing negative rating outlook -- will further deteriorate significantly," adds Lam. China Glass was hit by a material rise in fuel costs and drop in product prices in 2008. Further aggravating the pressure is the company's significant planned investments -- not yet fully funded -- in new production lines for low emission glass in Dongtai, China. According to the company's announcement, a reorganization involving the acquisition and disposal of group companies is under consideration. The company has also proposed a HK$24 million share placement to senior management, subject to shareholders' approval, though this amount is modest compared to its total debt of RMB896 million as of June 2008. Moody's understands that the company is also arranging for other committed bank funding. Moody's review will focus on 1) the magnitude of its expected earnings decline in 2008 and the resultant impact on debt coverage metrics; 2) the company's earnings and cash flow generation ability in the next 12-18 months; 3) its latest capital expenditure and funding plans; and 4) group reorganization plans. The last rating action with respect to China Glass was on Nov 13, 2007 when the rating outlook was changed to negative. China Glass Holdings Ltd, publicly listed in Hong Kong, is the second largest flat glass manufacturer in China in terms of capacity, with 15 production lines across the country. The flat glass it produces is largely for use in the construction industry. ZTE CORP: 2008 Revenue Jumps 27.37%; Secures US$15BB Credit Line ---------------------------------------------------------------- ZTE Corporation disclosed its annual results for the year ended December 31, 2008. Based on HKAS, ZTE recorded a revenue of approximately RMB44,293 million in 2008, representing an increase of 27.37% against 2007. Net profit was RMB1,660 million. Basic earnings per share were RMB1.24. Applying PRC GAAP, during the year under review, the Group's revenue from principal operations was approximately RMB44,293 million and net profit was RMB1,660 million. Earnings per share amounted to RMB1.24. The Board of Directors recommended payment of a final dividend for the year ended 2008: Based on the total number of issued shares of 1,340 million as at December 31, 2008, by way of capitalization of capital reserves, every 10 shares will increase by 3 new shares. And for every 10 shares, RMB3 in cash (with tax) will be distributed. In sum, the total new issued capital will be amounted to RMB403 million and RMB403 million will be distributed in cash. During the year, the Group's revenue from domestic operations amounted to RMB17,466 million, representing a year-on-year growth of 18.93%. The Group continued to make significant gain in share in the infrastructure products market, riding on opportunities presented by 3G construction and broadband development in the PRC and thereby secured reasonable profit. It was also actively involved in network refinement, business integration and new business development, seizing the opportunities presented by telecommunications carriers transforming into integrated information service suppliers through network integration, business centralization and competition via differentiation. As for revenue from the international operations, it grew to RMB26,827 million, 33.53% more year-on-year, and accounted for 60.6% of the total revenue of the Group, 2.83 percentage points higher compared with the previous year. The Group maintained market shares in developing countries and steadily increased the proportion of income from sales in Europe and America in its effort to grow the two markets into an important income source. Mr. Hou Weigui, Chairman of ZTE, said, "In 2008, the Group made major breakthroughs and strong growth in the main product areas of GSM, WCDMA, FTTX and optical transmission. In China, we submitted bids for 3G projects of the three major carriers to prepare for undertaking the projects. Outside China, we have made major advances in strategic overseas markets and the multinational carrier market, paving the way for the Group to reach new heights in 2009." Mr. Hou concluded, "In the coming year, as carriers continue to push forward with works in relation to 3G operations, full-fledged servicing, VAS business, network transformation and optimization, the Group expects to see growth opportunities in the domestic market. In the international market, the impact of the financial crisis will continue to be felt and how to achieve major breakthroughs in developed countries and steady growth of business in developing countries will be the Group's priority." The rapid deployment of 3G networks in China is expected to establish about 660,000 3G carrier frequency by mid this year. In the 3G tender bids offered by China's three largest telecom operators, the Group obtained about 30% of the total local market, positioning the Group as the clear leader in China's 3G industry. Financing Deal In a separate statement, ZTE Corporation disclosed that it has entered into a strategic partnership with China Development Bank by signing a "Development of Financial Cooperation Agreement". According to a 5-year cooperation framework agreement, China Development Bank will provide ZTE a US$15 billion credit line, including ZTE's overseas project financing and ZTE's credit limits. ZTE said that both companies are currently in discussion to develop specific terms and procedures on financing project and how to effectively execute the business cooperation. About ZTE Corporation ZTE Corporation -- http://www.zte.com.cn --is a leading global provider of telecommunications equipment and network solutions. The ZTE product range is the most complete in the world - covering virtually every sector of the wireline, wireless, service and terminals markets. The company delivers innovative, custom-made products and services to customers in more than 135 countries, helping them to achieve continued revenue growth and to shape the future of the world's communications. ZTE commits around 10% of annual turnover to research and development and takes a leading role in a wide range of international bodies developing emerging telecoms standards. It is the fastest growing telecoms equipment company in the world, and is China's only listed telecoms manufacturer, with shares publicly traded on both the Hong Kong and Shenzhen Stock Exchanges. * * * ZTE Corporation continues to carry 'BB+' long-term foreign currency and local currency Issuer default ratings from Fitch with stable outlook. The ratings were affirmed in April 2008. ================ H O N G K O N G ================ CHAU TAI: Commences Dissolution Proceedings ------------------------------------------- Chau Tai Chun Holdings (No. 4) Limited commenced dissolution proceedings on March 6, 2009. Chow Tsz Yan, Amy is the company's liquidator. DOLCE VITA: Creditors' Proofs of Debt Due on April 21 ----------------------------------------------------- The creditors of Dolce Vita Company Limited are required to file their proofs of debt by April 21, 2009, to be included in the company's dividend distribution. The company's liquidator is: Ho Oi Suen Hing Yip Commercial Centre Room 502, 5th Floor 272-284 Des Voeux Road Central Hong Kong FRESH MIND: Members to Receive Wind-Up Report on April 21 --------------------------------------------------------- The members of Fresh Mind Investment Limited will hold a meeting on April 21, 2009, at 11:30 a.m., at the 12th Floor of 3 Lockhart Road, in Wanchai, Hong Kong. At the meeting, Chang Shuk Chien Leslie, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GROOVER LIMITED: Creditors' Proofs of Debt Due on April 23 ---------------------------------------------------------- The creditors of Groover Limited are required to file their proofs of debt by April 23, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 16, 2009. The company's liquidator is: Ng Kam Chiu 13A, Tak Lee Commercial Building 113-117 Wanchai Road Wanchai, Hong Kong HONG KONG RESIDENTS: Creditors' Proofs of Debt Due on April 20 -------------------------------------------------------------- The creditors of Hong Kong Residents of Tiu Yeong Sing Tshang Village Association Limited are required to file their proofs of debt by April 20, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 13, 2009. The company's liquidator is: Chan Kam Shing C.C. Wu Building, Room 2604, 26th Floor 302-308 Hennessy Road Wanchai, Hong Kong HUGO CHOICE: Creditors' Proofs of Debt Due on April 22 ------------------------------------------------------ The creditors of Hugo Choice Limited are required to file their proofs of debt by April 22, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 13, 2009. The company's liquidators are: Yip Chee Lan Li Wai Fan Dai Shun Street Tai Po Industrial Estate Tai Po, New Territories Hong Kong JACK MOON: Placed Under Voluntary Wind-Up ----------------------------------------- At an extraordinary general meeting held on March 9, 2009, the shareholders of Jack Moon Inc. (H.K) Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Leung Chi Wing Yue Xiu Building, Room 3, 8th Floor 160 Lockhart Road Wanchai, Hong Kong JADA BIOTECH: Placed Under Voluntary Wind-Up -------------------------------------------- At an extraordinary general meeting held on March 9, 2009, the shareholders of Jada Biotech Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Leung Chi Wing Yue Xiu Building, Room 3, 8th Floor 160 Lockhart Road Wan Chai, Hong Kong JING GANG: Creditors' Proofs of Debt Due on April 20 ---------------------------------------------------- The creditors of Jing Gang Entertainment Company Limited are required to file their proofs of debt by April 20, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 13, 2009. The company's liquidator is: Yeung Tak Chun World-Wide House Room 1903, 19th Floor 19 Des Voeux Road Central Hong Kong NEW PROFIT: Creditors' Proofs of Debt Due on April 22 ----------------------------------------------------- The creditors of New Profit Enterprises Limited are required to file their proofs of debt by April 22, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 13, 2009. The company's liquidators are: Yip Chee Lan Li Wai Fan 6-22 Dai Shun Street Tai Po Estate Tai Po, New Territories Hong Kong PACIFIC HARVEST: Creditors' Proofs of Debt Due on April 23 ---------------------------------------------------------- The creditors of Pacific Harvest Limited are required to file their proofs of debt by April 23, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 13, 2009. The company's liquidator is: Lam Yat Chung Kong Ling Building, 2nd Floor 102 Jervois Street Sheung Wan, Hong Kong PIZZA PIZZA: Creditors' and Members' Meeting Set for April 30 ------------------------------------------------------------- The creditors and members of Pizza Pizza Limited will hold their meeting on April 30, 2009, at 10:00 a.m., at 2310, in 43-59 Queen's Road East, Hong Kong. At the meeting, J P Walsh, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SGA (HK) ET AL: Creditors and Contributories to Meet on April 22 ---------------------------------------------------------------- On April 22, 2009, a meeting will be held for the creditors and contributories of: -- SGA (HK) Limited; and -- SGA International Limited. At the meeting, the creditors and contributories will be asked to consider and nominate liquidators and members of a committee of inspection. TAI LIN ET AL: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order to wind up the operations of: -- Tai Lin Radio Service Limited on March 2, 2009; -- Peace Mark Production Limited on March 4, 2009; -- Peace Mark (B.V.I.) Limited on March 4, 2009; -- Lucky Dragon Boat (Sai Wan) Restaurant Limited on March 4; -- M & D Management Limited on March 4, 2009; -- Cheong Kee Special Food Product Limited on March 4, 2009; -- Sam Man Logistics Development Limited on March 4, 2009; -- LCW International Limited on March 4, 2009; -- Beauti Tools Limited on March 4, 2009; -- Big Luck Limited on December 29, 2008; -- Sumber Asia Holdings Limited on March 4, 2009; -- Views Eng Limited on March 4, 2009; -- Chan's Scaffolding Company Limited on March 4, 2009; -- Ask Global Enterprises Limited on March 4, 2009; -- Kingsway (HK) Limited on March 4, 2009; -- PBI-Dansensor (Far East) Limited on March 4, 2009; and -- Spirit Trade Limited on March 4, 2009. Lee Mei Yee May is acting as the companies' official receiver. TWIN FORTUNE: Creditors' Proofs of Debt Due on April 22 ------------------------------------------------------- The creditors of Twin Fortune International Limited are required to file their proofs of debt by April 22, 2009, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 13, 2009. The company's liquidators are: Yip Chee Lan Li Wai Fan Dai Shun Street, Tai Po Estate Tai Po, New Territories Hong Kong VINCELECTA INTERNATIONAL: Placed Under Voluntary Wind-Up -------------------------------------------------------- On March 10, 2009, the shareholder of Vincelecta International Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Cheung Chui Ping Chaplin Times Media Centre, 9th Floor 133 Wanchai Road, Wanchai Hong Kong ========= I N D I A ========= AIR INDIA: May Get Syndicated $1 Bil. Loan to Buy More Aircrafts ---------------------------------------------------------------- Air India is likely to get a $1 billion loan from a syndicate of over ten banks to help the airline acquire 12 aircrafts mainly for domestic operations, The Times of India reports. According to the report, IDBI Bank, which acts as the lead arranger for the fund raising programme, said it is negotiating with other entities to give national carrier Air India a loan. "We are syndicating the $1 billion loan for Air India. The process is already started. The loan will be arranged in the shortest possible time," the report quoted IDBI Bank deputy MD Jitender Balakrishnan as saying. Mr. Balakrishnan, the report relates, said that over 10 banks are understood to be part of the consortium, the size of which is likely to be expanded, with more lenders coming forward to participate in the deal. Air India, the report notes, intends to use the loan amount to purchase 12 out of the 43 aircraft it plans to acquire, including A-319, A-320 and A-321. Air India -- http://www.airindia.com/-- transports passengers throughout India and to more than 40 destinations throughout the world. Affiliate Air India Express operates as a low-fare carrier, mainly between India and destinations in the Middle East, and Air India Cargo provides freight transportation. The government of India has merged Air India with another state- controlled carrier, Indian Airlines, which has focused on domestic routes. The combined airline, part of a new holding company called National Aviation Company of India, uses the Air India brand. The new Air India and its affiliates have a fleet of more than 110 aircraft altogether. Air India and Indian Airlines posted a combined net loss of Rs.688 crore for the financial year ended March 2007, according to The Financial Express. BARNALA STEEL: CRISIL Assigns 'BB+' Rating on Various Bank Loans ---------------------------------------------------------------- CRISIL has assigned its ratings of 'BB+/Stable/P4' to the various bank facilities of Barnala Steel Industries Ltd (BSIL). Rs.56.50 Million Term Loan BB+/Stable (Assigned) Rs.175.00 Million Cash Credit BB+/Stable (Assigned) Rs.75.00 Million FCNR (B) BB+/Stable (Assigned) Rs.30.00 Million Letter of Credit P4 (Assigned) / Bank Guarantee The ratings reflect BSIL's small scale of operations in a fragmented industry, the vulnerability of its margins to fluctuations in raw material prices, and its moderate financial risk profile and operating efficiencies. These weaknesses are partially offset by BSIL's comfortable regional position in the steel rolled products industry, and strong brand name. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of BSIL, MQ Steels Pvt Ltd (MQSL), and Aswad Steel and Alloys Pvt Ltd (ASAPL), collectively referred to herein as the Barnala group. This is in view of the strong operational and financial linkages shared by the three companies. All these companies are under a common ownership and management, and are engaged in the same lines of business, with the output of MQSL and ASAPL being used as raw material by BSIL. Outlook: Stable CRISIL believes that the Barnala group's financial risk profile will remain moderate, and its scale of operations will remain small over the near to medium term. The outlook may be revised to 'Positive' if the group's financial risk profile improves significantly, most likely due to improvement in operating margins and cash accruals, or fresh equity infusions. Conversely, the outlook may be revised to 'Negative' if the group undertakes large, debt-funded capital expenditure. About Barnala Steel BSIL, incorporated in 1994, manufactures thermo-mechanically treated bars, mild steel bars, coils, wire rods, and other steel- rolled products. Its manufacturing plant at Muzaffarnagar (Uttar Pradesh) has a capacity of 70,000 tonnes per annum. BSIL procures its main raw materials � ingots and billets � largely from group companies MQSL and ASAPL. The group is promoted by Mr. Sajid Mian Nasir, Mr. Hasid Mustafa, and Mr. Ameed Ahmed Khan. For 2007-08 (refers to financial year, April 1 to March 31), the Barnala group reported a profit after tax (PAT) of Rs.12.8 million on net sales of Rs.1684.5 million, as against a PAT of Rs.12.2 million on net sales of Rs.1148.2 million for the previous year. CITIGROUP INC: Won't Sell HDFC Unit in India -------------------------------------------- At least four funds are willing to buy stake in Citigroup Inc.'s Indian unit, Housing Development Finance Corp., should the U.S.- based lender opt to sell, Bloomberg News reports citing Managing Director Keki Mistry. However, Mr. Mistry, as cited by the news agency, said Citigroup doesn't plan to sell its stake in HDFC noting the U.S. bank classified its 12 percent holding in the Indian firm under the group it refers to as Citicorp, which will hold businesses it wants to keep. Mr. Mistry, according to Bloomberg News, expects HDFC's loans to grow 20 percent in the fiscal year ending March 2010. According to Bloomberg News, Citigroup Chief Executive Officer Vikram Pandit, struggling to revive the business and repay US$45 billion of government aid, has been selling assets to raise capital. About Citigroup Based in New York, Citigroup (NYSE: C) -- http://www.citigroup.com -- is organized into four major segments -- Consumer Banking, Global Cards, Institutional Clients Group, and Global Wealth Management. Citigroup had $2.0 trillion in total assets on $1.9 trillion in total liabilities as of Sept. 30, 2008. As reported in the Troubled Company Reporter on Nov. 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. As part of the agreement, the U.S. Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of approximately $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup will issue preferred shares to the Treasury and FDIC. In addition and if necessary, the Federal Reserve will backstop residual risk in the asset pool through a non-recourse loan. COSMIC FERRO: Fitch Assigns 'BB+' National Long-Term Rating ----------------------------------------------------------- Fitch Ratings has assigned a 'BB+(ind)' National Long-term rating to Cosmic Ferro Alloys Ltd. The Outlook is Stable. At the same time, the agency has assigned these ratings to the CFAL's various bank loans: -- INR207.7 million outstanding long-term debt (as on December 31, 2008): 'BB+ (ind)'; -- INR328.5 million Cash Credit limit: 'BB+ (ind)'; and -- INR794.0 million non fund-based facilities: 'F4 (ind)' The rating reflects the relatively small size of the company's operations and the likely impact on revenues and profitability from a demand slowdown in the steel sector. Fitch believes that the decline in demand for ferro alloys coupled with inventory de-stocking by bigger manufacturers are likely to pose serious challenges for smaller manufacturers like CFAL, who have less than 2% market share in the ferro alloy industry. Over the last three years (FY06-FY08), CFAL has exported almost 60%-70% of its finished products to mainly European and Middle East Countries. However, with a slowdown in demand from these countries, CFAL's exports are likely to be under more pressure - which would also stretch cash conversion cycles as realisations are faster in the case of exports as compared to the domestic market. CFAL procures manganese ore, its main raw material, in the spot market. With manganese ore prices being volatile in nature, this carries high inventory cost risk in case CFAL is not able to pass on the price hike to its customers. Fitch believes that CFAL's ability to pass on the hike input prices to its end customers are limited and will be a key factor affecting its EBIDTA margins. The company reported net sales of INR2158.9 million in FY08, which was 134.8% higher compared with INR919.5 million in FY07. However, CFAL's Operating EBIDTA margins declined in FY08 to 6.6% as compared to 10.0% in FY07 primarily due to an adverse movement in raw material prices. CFAL's leverage (Total Adjusted Debt net of cash\Operating EBIDTA) also deteriorated in FY08 to 3.2x from 2.3x in FY07 and the company reported a negative free cash flow over the last four years (FY05-FY08) because of its debt funded capex plans. Nevertheless, the agency notes that CFAL over the years has increased its production, which was supported by almost 90% utilisation of its working capital limits. The increasing trend in working capital from INR35.2 million in FY05 to INR249.5 million in FY08 was mainly due to the hike in raw materials prices (which is volatile in nature). In addition, CFAL has a policy of entering into forward contracts while importing raw materials with most of its customers in the export market to protect its receivables. Substantial debt-funded acquisitions/capex and a deterioration in leverage (net debt/operating EBITDA) could affect CFAL's key credit metrics and apply downward rating pressure. CFAL was incorporated in 2003 to manufacture ferro alloys with mainly two products, silico manganese and ferro manganese. Due to an upswing in the steel industry, CFAL has grown with a compound annual growth rate of 80% between FY06-FY08, and increased its capacity for manufacturing ferro alloys over the last four years. Presently the company has four electric arc furnace of 9MVA each, with a cumulative installed capacity of 75,900MTPA (silico manganese - 31,600MTPA and ferro manganese � 44,300MTPA). KHOKHAR INFRASTRUCTURE: CRISIL Rates Rs.50MM Cash Credit at 'BB+' ----------------------------------------------------------------- CRISIL has assigned its ratings of 'BB+/Stable/P4' to the various bank facilities of Khokhar Infrastructure Pvt Ltd (Khokhar). Rs.50 Million Cash Credit BB+/Stable (Assigned) Rs.300 Million Bank Guarantee * P4 (Assigned) * Includes proposed limit of Rs.150 Million. The ratings reflect Khokhar's low net worth, and exposure to risks relating to geographical and customer concentration in its revenue profile. These weaknesses are, however, partially offset by Khokhar's strong growth in revenues, healthy order book, and above-average financial risk profile. For arriving at the ratings, CRISIL has combined the financial and business risk profiles of Khokhar and the partnership firm Bharat Construction. This is because both entities are under a common management, and in the same line of business. Moreover, the management intends to merge the two entities in future. Outlook: Stable CRISIL believes that Khokhar will benefit from the growth prospects in the civil construction industry. The outlook may be revised to 'Positive' if Khokhar strengthens its business risk profile through wider geographical reach, while maintaining stable operating margins. Conversely, the outlook may be revised to 'Negative' if large, debt-funded capital expenditure or acquisitions lead to deterioration in Khokhar's financial risk profile. About Bharat and Khokhar Bharat Constructions was set up as a partnership concern by Mr. Harbhajan Singh Khokhar and his three brothers in 2001, while Khokhar was incorporated in 2007. Khokhar is engaged in civil construction activities, including construction of roads, bridges and buildings in Jharkhand and Bihar. The merged entities reported a profit after tax (PAT) of Rs.13.7 million on net sales of Rs.314.4 million for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of Rs.6.3 million on net sales of Rs.153.2 million for 2006-07. MITTATEX EXPORTS: Weak Liquidity Prompts CRISIL 'P4' Ratings ------------------------------------------------------------ CRISIL has assigned its ratings of 'P4' to the various bank facilities of Mittatex Exports Pvt Ltd (Mittatex). Rs.350.0 Million Packing Credit P4 (Assigned) Rs.250.0 Million Short Term Loan P4 (Assigned) The ratings reflect Mittatex's moderate financial risk profile and weak liquidity marked by insufficient cash accruals to repay the maturing debt obligations arising in its joint venture concern, MEP Cotton Pvt Ltd. The ratings also reflect Mittatex's aggressive expansion plans, limited product and geographical diversification, and its exposure to risks relating to changes in the government regulations regarding the cotton industry. These rating weaknesses are, however, partially mitigated by Mittatex's established market position in the cotton trading business, and its sound risk management policies. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Mittatex and MEP Cotton Pvt Ltd (MEP Cotton), collectively referred to as the MEP group. This is because of the operational synergies and cash flow fungibility between the entities, and their common set of promoters. MEP Cotton is a 50-50 joint venture between Mittatex and Welspun India Ltd (Welspun India). MEP Cotton is managed by the promoters of Mittatex; Welspun India primarily functions as a financial investor in MEP Cotton. Also, Mittatex has provided corporate guarantees for MEP Cotton's bank facilities. About Mittatex Exports Incorporated in 1992 by Mr. K K Mittal, Mittatex trades in raw cotton and caters primarily to China, Vietnam, Taiwan, and Malaysia. The company is managed by Mr. K K Mittal and his son Mr. Anuj Mittal. In 2007, Mittatex entered into a 50-50 joint venture with Welspun India and set up MEP Cotton. MEP Cotton has three ginning units and is currently implementing a cottonseed crushing and refining mill which is expected to be implemented in 2009-10 (refers to financial year, April 1 to March 31). Mr. Ashish Mittal, younger son of K K Mittal, supervises the MEP Cotton project. For 2007-08, MEP Group reported a profit after tax (PAT) of Rs.11 million on net sales of Rs.3.74 billion, as against a PAT of Rs.16 million on net sales of Rs.2.23 billion for 2006-07. PREM MOTORS: CRISIL Assigns 'BB' Ratings on Various Bank Loans -------------------------------------------------------------- CRISIL has assigned its rating of 'BB/Stable' to the bank facilities of Prem Motors Pvt Ltd (PML). Rs.107.5 Million Cash Credit * BB/Stable (Assigned) Rs.234 Million Working Capital BB/Stable (Assigned) Demand Loan Rs.225 Million Term Loan BB/Stable (Assigned) * Includes Standby line of credit of Rs.37.5 Million. The rating reflects PML's weak financial risk profile marked by high gearing; further, the current economic slowdown is expected to exert pressure on the company's business risk profile over the medium term. These weaknesses are partially offset by PML's established position in its selected automobile dealership market, reflected in its high operating profitability. Outlook: Stable CRISIL expects PML to maintain its business risk profile backed by its established market position. The outlook may be revised to 'Positive' if PML is able to improve its capital structure from current levels or in case of any significant improvement in the operating margins. Conversely, the outlook may be revised to 'Negative' in case of a slowdown in the automobile industry, significantly impacting its revenue and profitability, or any large debt-funded capital expenditure, adversely affecting its capital structure, or a decline in PML's cash accruals. About Prem Motors PML was incorporated in 1990 after Mr. Charanjeet Nagpal took over Prem Motors, a dealership for Rajdoot Motorcycles in Gwalior. PML obtained the first dealership of Maruti Suzuki India Ltd (MSIL) in 2001 at Gwalior. Presently, the company has 4 dealership at Jaipur (2 nos.), Gwalior (1) and Guna (1), out of which 3 have 3S setup (Sales, Service and Spares). MSIL dealership at Gwalior and Guna are exclusive dealerships in the region. PML also has dealership of TVS motors (Gwalior) and dealership of Piaggio (Gwalior). In 2007-08 (refers to financial year, April 1 to March 31), MSIL dealerships contributed about 80 per cent of PML's total revenue. For 2007-08, PML reported a profit after tax (PAT) of Rs.17.4 million on net revenues of Rs.1.14 billion, as against a PAT of Rs.14.1 million on net revenues of Rs.952 million in the previous year. RAMA KRISHNA: Weak Financial Risk Profile Cues CRISIL 'B+' Ratings ------------------------------------------------------------------ CRISIL has assigned its ratings of 'B+/Stable' to the various bank facilities of Rama Krishna Spintex Pvt Ltd (Rama Krishna). Rs.50.0 Million Cash Credit Limit B+/Stable (Assigned) Rs.144.0 Million Term Loan B+/Stable (Assigned) Rs.7.5 Million Standby Line of B+/Stable (Assigned) Credit The ratings reflect Rama Krishna's weak financial risk profile and limited presence in the cotton yarn industry. These weaknesses are, however, partially offset by the benefits that Rama Krishna derives from its promoters' vast experience in the cotton yarn industry. Outlook: Stable CRISIL believes that the financial risk profile of Rama Krishna Spintex Pvt Ltd (Rama Krishna) will remain weak over the medium term due to its high gearing and weak debt protection measures. The outlook may be revised to 'Positive' if the company's cash accruals improve significantly, thereby, significantly improving its capital structure. Conversely, the outlook may be revised to 'Negative' if Rama Krishna's profitability and cash accruals decline, thereby, resulting in a sharp deterioration in its financial risk profile. About Rama Krishna Rama Krishna was incorporated in February 2007, by Mr. Makhan Lal Mangla to manufacture cotton yarn. The company started production in February 2008. It has a manufacturing facility at Bhatinda with an installed capacity of 13000 spindles and a ginning plant. Mr. Mangla is also a partner in Krishna Oil and General Mills, a firm engaged in oil extraction and cotton ginning. For 2007-08 (refers to financial year, April 1 to March 31), Rama Krishna reported a profit after tax (PAT) of Rs. 0.06 million on net sales of Rs. 10.3 million. SAINSONS PULP: CRISIL Puts 'BB' Rating on Rs.322.5 Mln. Term Loan ----------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to Sainsons Pulp & Papers Ltd's (SPPL's) bank facilities. Rs.60 Million Cash Credit Limit BB/Stable (Assigned) Rs.322.5 Million Term Loan BB/Stable (Assigned) Rs.100 Million Letter of Credit P4 (Assigned) Rs.27 Million Bank Guarantee P4 (Assigned) The ratings reflect the technical and logistical risks associated with the company's ongoing project, and the fluctuations in the price of paper. These risks are partially offset by the promoter's experience in the operation and management of paper mills, and the availability of requisite funding for the project. Outlook: Stable CRISIL believes that SPPL will service its long-term debt and gradually improve its capital structure, on setting up the plant and commencement of operations on schedule. The outlook may be revised to 'Positive' if the company completes the project on time, and stabilises its operations faster than expected. Conversely, the outlook may be revised to 'Negative' in case of cost overruns or delays in the project. Lower-than-expected profitability could also result in a revision in the outlook to 'Negative'. About Sainsons Pulp SPPL was incorporated in 2005 for setting up a Rs.480-million, waste paper-based writing and printing paper mill with a production capacity of 150 tonnes per day. The company has acquired land at Taliwal-Nichla in Una district of Himachal Pradesh, and has constructed the necessary buildings. It has also bought the required machines and machine parts, and installation is expected to commence shortly. The plant is scheduled to commence operations by October 2009. The company is promoted by Mr. Ramesh Kumar Saini, who has more than 17 years of experience in the paper industry. SAMRIDDHI EDUCATIONAL: CRISIL Rates Rs.168MM Term Loan at 'B+' -------------------------------------------------------------- CRISIL has assigned its rating of 'B+/Negative' to the Rs.168 million term loan facility of Samriddhi Educational Trust (Samriddhi). The rating reflects Samriddhi's weak financial risk profile, and limited experience in the educational sector. These weaknesses are, however, partially offset by Samriddhi's strong prospects in the education sector, backed by stable demand. Outlook: Negative CRISIL believes that Samriddhi financial risk profile will be affected adversely by the debt-funded capital expenditure (capex) planned by the trust. The rating may be downgraded if there is a significant drop in student intake in the trust's colleges, or if the company takes on substantial debt to fund its capex. Conversely, the outlook may be revised to 'Stable', if Samriddhi improves its revenues by increasing the number of seats on offer, or fees charged, in its colleges. About the Trust Samriddhi is an educational trust set up in 2005-06 (refers to financial year, April 1 to March 31) in Bhubaneswar (Orissa). The trust manages Raajdhani Engineering College (REC) which offers courses in engineering and computer applications; the courses are affiliated to Biju Patnaik University of Technology. For 2007-08 (refers to financial year, April 1 to March 31), Samriddhi reported a profit after tax (PAT) of Rs.16 million on net sales of Rs.545 million, as against a PAT of Rs.1.6 million on net sales of Rs.293 million for 2006-07. SANGHVI & SONS: CRISIL Rates Rs.200.0 Mln Packing Credit at 'P4' ---------------------------------------------------------------- CRISIL has assigned its rating of 'P4' to the bank facilities of Sanghvi & Sons (Sanghvi). Rs.200.0 Million Packing Credit P4 (Assigned) Rs.400.0 Million Post Shipment Credit P4 (Assigned) The rating reflects Sanghvi's weak financial risk profile, business concentration risks and expected pressures on revenues and profitability due to the slowdown in global demand for diamonds and diamond jewellery. These weaknesses are, however, partially offset by the benefits that the firm derives from its promoter's experience in the diamond business. About Sanghvi Sanghvi, set up by Mr. Tarachand Sanghvi, Mr. Mohanlal Sanghvi and Mr. Lalit Sanghvi in 1982, is in the business of manufacturing and trading in diamonds. Sanghvi has its own manufacturing facility at Surat. Sanghvi reported a profit after tax (PAT) of Rs.21 million on net sales of Rs.1459 million for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of Rs.23 million on net sales of Rs.1497 million for 2006-07. ================= I N D O N E S I A ================= CENTRAL PROTEINAPRIMA: Makes New Bid for Rights Issue ----------------------------------------------------- PT Central Proteinaprima Tbk (CP Prima) is making another bid to secure approval for a rights issue from the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK), the Jakarta Globe reports citing CP Prima's Corporate Communications Manager Fajar Reksoprodjo. Citing the news agency, the Troubled Company Reporter-Asia Pacific reported on March 17, 2009, that Bapepam-LK cancelled CP Prima's IDR1.75 trillion rights issue on the grounds that the company had failed to satisfy the attendance quorum for minority shareholders at an extraordinary general meeting held on Nov. 28. However, the company has maintained that it had satisfied all requirements for the rights issue, the Jakarta Globe noted. "I think there was intervention by the foreign investors on CP Prima's rights issue," an unnamed source at the company told the Jakarta Globe. In a response to the speculation, Bapepam-LK's Head of Legal and Regulatory Affairs Robinson Simbolon, as cited by the report, as said that the agency had launched an investigation of the matter under its own initiative. PT Central Proteinaprima, headquartered in Jakarta, is Indonesia's largest exporter of frozen shrimp to the US, the world's largest market. It is Indonesia's leader in shrimp fry, shrimp feed and fish feed production. Its products also include poultry feed, day-old chicks and probiotics. * * * As reported by the Troubled Company Reporter-Asia Pacific on March 6, 2009, Moody's Investors Service downgraded to B3 from B2 the corporate family rating and senior secured bond rating of PT Central Proteinaprima. At the same time, PT Moody's Indonesia downgraded CPP's national scale issuer rating to Ba1.id from Baa2.id. The outlook on all ratings is negative. The TCR-AP also reported on March 2, 2009, that Fitch Ratings affirmed Indonesia's PT Central Proteinaprima Tbk's Long-term foreign currency Issuer Default Rating and senior unsecured ratings at 'B'. The Outlook is Negative. EXCELCOMINDO PRATAMA: Shareholders Approve US$400-Mil. Loans ------------------------------------------------------------ The shareholders of PT Excelcomindo Pratama (XL) have approved the the company's plan to seek US$400 million worth of loans this year to help refinance its debts, Jakarta Post reports citing XL's Finance Director Willem Lucas Timmersmans. Mr. Timmersmans, as cited by the Post, said the new loans would be used to pay up US$130 million in debt due to mature throughout this year, while "the remaining proceeds would be used to accelerate debt payments" in the following years. Beyond 2009, XL has loans of US$300 million maturing in 2010 and 2011, the report discloses. According to the report, the refinancing program is part of XL's strategy to lower its debt-to-equity ratio, which stood at the level of 4.1 percent by the end of last year. "The idea is to reduce exposure to dollar debts and replace them with rupiah debts," Hasnul was quoted by The Post as saying. The Post, citing previous reports, says that XL's outstanding debts stood at around US$1 billion by the end of 2008, about 90% of which was dollar denominated. The Post recalls the company was hit last year by higher spending on network expansion and on dollar-debt servicing as the local currency weakened, slumping to post a IDR15 billion (US$1.26 million) loss as against IDR251 billion in net profits a year earlier. About Excelcomindo Pratama Headquartered in Jakarta, Indonesia, PT Excelcomindo Pratama Tbk -- http://www.xl.co.id/-- provides wireless telecommunications services, leased lines and corporate services, which include Internet Service Provider and Voice over Internet Protocol services. In addition, Excelcomindo provides voice, data and other value-added cellular telecommunications services. Its product lines include jempol, bebas and xplor. The company also provides services that allow its customers to purchase electronic voucher reloads at all of its centers and outlets, automated teller machines of various major banks and through its all centers. Excelcomindo starter packs and voucher reloads are also sold by independent retailers. * * * The Troubled Company Reporter-Asia Pacific reported on March 3, 2009, that Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on the company and its 'BB-' rating on the US$250 million (US$127.7 million currently outstanding) 7.125% notes due 2013 issued by Excelcomindo Finance Co. B.V., a fully owned company incorporated in The Netherlands, and which are unconditionally and irrevocably guaranteed by XL. S&P also revised its down its outlook on the company's long-term corporate credit rating to negative from stable. The TCR-AP also reported on Feb. 27, 2009, that Moody's Investors Service has changed the outlook on PT Excelcomindo Pratama Tbk's Ba2 local currency issuer rating and senior unsecured foreign currency rating to negative from stable. On September 2, 2008, the TCR-AP reported that Fitch Ratings affirmed PT Excelcomindo Pratama Tbk's Long-term foreign currency and local currency Issuer Default Ratings at 'BB-'. The Outlook on the ratings is Stable. At the same time, Fitch has affirmed the rating on XL's outstanding senior unsecured notes programme at 'BB-'. ========= K E N Y A ========= PAN AFRICAN: Placed in Receivership; 1,500 Permanent Jobs Affected ------------------------------------------------------------------ The Daily Nation reported Friday that Pan African Paper Mills Limited (Panpaper) has been placed in receivership by the company's debenture holders. The company has debts amounting to Sh7 billion. It also owes about Sh100 million and Sh200 million to its fuel supplier, Kenya Power and Lighting Company. The report says four creditor banks have appointed Kieran Day and Ian Small of Begbies Traynor Group to be the receiver managers for the company's floating assets, which include book debts and stocks. The four banks are Kenya Commercial Bank, Bank of Baroda, Barclays Bank of Kenya and EcoBank. According to the report, Messrs. Day and Small were appointed as joint receivers and managers over the floating assets charged by debentures that were created on various dates by Panpaper. The move, the Daily notes, gives authority to the receiver managers to manage floating charged assets, which is expected to turnaround the company. The Daily Nation recalls that the 40-year-old factory went under last month, sending home 1,500 permanent employees, 30,000 casual labourers and leaving the economy of Webuye, a mono-industrial town, to imminent death. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 26, 2009, the Business Daily said Panpaper held a shareholders' meeting to discuss rescue plans for the company amid a major disruption last month. According to the Business Daily, Panpaper chief executive officer, Mr. Niranjan Saha, said the operations were suspended because of a "host of problems." The rescue plan, Mr. Saha said, would include "fiscal support measures" from the government. The Daily Nation stated that the Kenyan government has imposed a three-month suspension of operations to enable it come up with a concrete revival plan for the firm. However, the Daily Nation noted without any profit from operations, the company has accumulated debts that now run to about Sh8 billion. Host of Problems The Standard related that Panpaper's operations were also suspended following power disconnection to the firm late in January this year. In May last year, the Standard recalled, the Kenya Power and Lighting Company disconnected power to the company over a Sh30 million bill, but was re-connected after part of it was cleared. Aside from power disconnection, Panpaper also faces difficulty in securing capital because the company does not have a valid logging licence, according to the Standard. According to the Standard, Mr. Saha said the licence had not been renewed since 2003, leading to the disruption of wood supply, the factory's core raw material. The Standard disclosed that PanPaper has for some years been facing financial problems, attributed by the management to high fuel and power costs and difficulties in accessing raw materials. About Pan African Pan African Paper Limited operates a paper mill and forestry operation in Western Kenya in the town of Webuye, near the Uganda border. The industry began in the mid 1970's as a project of the Kenyan government with support and financing of the World Bank. Orient Paper Mills, part of the Birhla group from India, bought major shareholdings in the operation. ========= K O R E A ========= DAEWOO ELECTRONICS: Reduces Staff by 40%, Exits Two Business Units ------------------------------------------------------------------ Daewoo Electronics Corporation is planning to sell or spin off its TV and air conditioner businesses and dismiss 1,000 to 1,200 employees as part of restructuring, the Chosun Ilbo reports. "As the workout terminates this month, it needs to be extended by the creditors again. To get an extension from the creditors, we have submitted a measure to cut back on employees by 40 percent," a senior official with the firm was quoted by the report as saying. The report says the company plans to retain the profitable sectors, including refrigerators and washing machines businesses. Daewoo Electronics currently employs 2,500 staff, the report notes. Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation -- http://www.dwe.co.kr/-- is the third largest Korean consumer electronics company. It manufactures and sells a variety of products including televisions, DVD players, refrigerators, air conditioners, washing machines, microwaves, vacuum cleaners and car audio systems in over 105 countries. According to the Troubled Company Reporter-Asia Pacific, Daewoo Electronics has been under a debt workout program since January 2000, months after its parent group -- the Daewoo Group -- collapsed under debts of nearly US$80 billion in 1999. * KOREA: SMEs Loan Delinquency Ratio Rises to 45-Mo. High in Feb. ----------------------------------------------------------------- The delinquency ratio of loans given to small and medium-sized South Korean companies has hit a 45-month high amid deteriorating financial soundness of banks as smaller businesses struggle to repay their debts, the KBS World Radio reports citing the Financial Supervisory Service. According to the report, the financial watchdog said the delinquency ratio for local bank loans stood at about two-point- seven percent in February, up around one-point-three percent compared to the previous year. The loan default rate for the banks, KBS World Radio relates, rose to an average of nearly one-point-seven percent last month, the highest since October 2005. ==================== N E W Z E A L A N D ==================== ATLAS SECURITIES: Liquidators Probe Related Party Advances ---------------------------------------------------------- Liquidators for Atlas Securities, a company formerly owned by property developer Dave Henderson, is conducting investigation on a NZ$21-million related party advances, Marta Steeman at The Press reports. The liquidator's first report, as cited by the Press, said the company was placed in liquidation by an order of the High Court last month. The Press notes that the Inland Revenue Department, which is estimated to be owed $2.09 million, filed winding up petition against the company after it fell behind on its payments. According to the Press, liquidator Keiran Horne of HFK said there were still several issues to investigate, including a $21.24 million of related company advances. The report states that the liquidators had not been advised of any other creditors except for Secured Lending, which holds a general security agreement with Atlas Securities and South Canterbury Finance. The liquidators' report, the Press discloses, estimated that no funds would be available to unsecured creditors because preferential and secured creditors, such as employee and IRD claims, had to be paid first. At this stage, the report notes, there were insufficient funds to pay preferential and secured creditors. However, recovery actions might bring additional funds, the report says. The liquidation should be completed by next March, although there could be unexpected delays, the Press adds citing the liquidator's report. According to the Press, Atlas Securities is shown on the Companies Office website as the single largest shareholder in Property Ventures, the property development company of which Mr. Henderson is managing director. Mr. Henderson had resigned as a director of Atlas Securities on August 30 last year. COMPASS CAPITAL: Calls In Receivers ----------------------------------- Compass Capital Limited has been placed in receivership, David Hargreaves at BusinessDay reports. The report says the company, once an offshoot of Bridgecorp, has appointed Grant Graham and Brendon Gibson of KordaMentha as receivers. According to the report, Compass Capital still owed about 500 investors between NZ$13 million and NZ$14 million. The company's loan book, the report notes, now consists of just a small number of mortgages. The Troubled Company Reporter-Asia Pacific, citing Dominion Post, reported on Aug. 22, 2008, that Compass Capital stopped repaying its investors, blaming the deteriorating credit and property markets in recent months. In a letter dated Aug. 13, 2008, cited by the Post, the company told investors that borrowers had struggled to repay their loans which, in turn, impacted on Compass' ability to repay bond holders. Executive director Ian Gladwell said repayment of principal and interest had been suspended and directors were preparing a proposal to repay all existing bondholders. According to the report, Compass was set up in May 2006 to buy some of Bridgecorp Limited's best loans and provide the now doomed company with liquidity. Compass, the Post noted, stopped taking new investments on August 17 last year and withdrew its prospectus to raise up to NZ$100 million. As reported in the TCR-Asia Pacific, New Zealand-based Bridgecorp Limited was placed in receivership on July 2, 2007, after failing to pay principal due to debenture holders. John Waller and Colin McCloy, partners at PricewaterhouseCoopers, were appointed as receivers. The company owes around 1,800 debenture holders, which liquidators estimate hold approximately NZ$500 million. HANOVER FINANCE: Reaches Settlement With Developer Over Loan ------------------------------------------------------------ Hanover Finance and property developer Andrew Krukziener have reached a settlement over money Mr. Krukziener owed to the company, The Age reports. The terms of the confidential settlement required all current proceedings between the parties to be discontinued, the report discloses citing Hanover and Mr. Krukziener in a joint statement. The statement said the agreed payments represented a fair and reasonable settlement given the alternative, the report relates. According to the Age, since a judgment in April 2007 for a sum of NZ$6.98 million (AU$5.6 million) including interest, Hanover had been in negotiation with Mr. Krukziener for repayment of the amount, and had brought bankruptcy proceedings against him. The statement, as cited by the report, said Hanover had been pursuing Mr. Krukziener for repayment of a loan originally made in 1988. The Age states that Mr. Krukziener, best known for building Auckland's Metropolis Tower, had made a claim against Hanover relating to that loan and a subsequent joint venture property development. Hanover said in a statement Monday last week, that the first principal repayment to secured investors under the debt restructure plan was being made on schedule. In addition, Hanover said David Henry's appointment as new independent director and Chairman to the boards of both companies, as well as Hanover Capital Limited, has been approved by the respective trustees. David Henry was formerly an Executive Director and the Chief Financial Officer of Fisher & Paykel Industries Limited Group (prior to the Appliances/Healthcare split), and is a director of a number of private companies. While at Fisher & Paykel, Mr. Henry was a director of Fisher & Paykel Finance for 15 years, and consequently has an in-depth knowledge of the finance company sector. Among Mr. Henry's initial tasks will be to assist in the recruitment of a second independent director as foreshadowed in the debt restructuring plan. As previously signalled, incumbent Chairman Greg Muir will resign effective upon Mr. Henry's appointment. The Troubled Company Reporter-Asia Pacific on Dec. 10, 2008, reported that Hanover Finance's investors have voted in favor of the company's Debt Restructure Proposals, including a plan to fully repay NZ$552.6 million principal it owes over five years. About HFL Hanover Finance Limited -- http://www.hanover.co.nz/-- is NZ's third-largest privately-owned finance company with total assets of NZ$796 million at December 31, 2007. The company was established in 1984 to provide finance to the rural sector and began lending to property developers and investors in 1995. The loan portfolio has been gradually downsized since 2006 as a result of a more cautious approach to lending in the face of retail funding constraints. * * * As reported in the Troubled Company Reporter-Asia Pacific on Sept. 2, 2008, Fitch Ratings affirmed and simultaneously withdrawn the ratings of Hanover Finance Limited's Long-term and Short-term foreign currency Issuer Default Ratings of 'D', Individual rating of 'F', Support rating of '5' and the Support Rating Floor of 'NF'. A Long-term foreign currency IDR of 'D' indicates that HFL has defaulted on its financial obligations. The withdrawal of the ratings recognizes that HFL is no longer accepting new debentures and is seeking to implement a debt restructure plan for existing debenture holders. As a result, Fitch said it will no longer provide analytical coverage. ===================== P H I L I P P I N E S ===================== FORD MOTOR: Phil. Unit's Export Down by 15% in January - February ----------------------------------------------------------------- The Philippine unit of Ford Motor Co., Ford Group Philippines, exported 15% less cars in the first two months of the year compared to the same period in 2008, BusinessWorld reports citing Ford Philippines's President, Richard C. Baker. "As a result of decreased regional demand, we have reduced our production of CBU (completely built units) exports by approximately 15%," Mr. Baker said in an e-mail obtained BusinessWorld. The firm has shipped 58,000 vehicles abroad as of last year since it started production in 2002, the news agency notes. Ford Philippines counts Thailand, Indonesia, Malaysia, and Vietnam as its export markets, the report discloses. Meanwhile, sales to the domestic market also contracted in January and February, falling by nearly a quarter to 945 units, the report adds citing an industry data. However, Mr. Baker, as cited by the report, said that while production has been reduced in line with domestic and regional demand, the firm will be retaining its workforce. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * Moody's Investors Service in December 2008 lowered the Corporate Family Rating and Probability of Default Rating of Ford Motor Company to Caa3 from Caa1 and lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade reflects the increased risk that Ford will have to undertake some form of balance sheet restructuring in order to achieve the same UAW concessions that General Motors and Chrysler are likely to achieve as a result of the recently- approved government bailout loans. Such a balance sheet restructuring would likely entail a loss for bond holders and would be viewed by Moody's as a distressed exchange and consequently treated as a default for analytic purposes. PHILIPPINE LONG: Fitch Affirms Issuer Default Rating to 'BB+' ------------------------------------------------------------- Fitch Ratings has affirmed Philippine Long Distance Telephone Company's Long-term foreign currency Issuer Default Rating and outstanding global bonds and senior notes at 'BB+', and its National Long-term rating at 'AAA(phl)'. The rating Outlook is Stable. At the same time, Fitch has affirmed PLDT's Long-term local currency IDR at 'BBB' but revised the rating Outlook to Negative from Stable. The rating action follows the company's agreement to acquire a 20% stake in electricity utility, Manila Electric Company from the Lopez Group, for PHP20.0bn in cash which represents approximately 40% of the group's pre-dividend free cash flow. The proposed transaction will be executed through PLDT's 92.8%-owned subsidiary Piltel, and is in addition to a 10.17% stake purchased by the group's Beneficial Trust Fund during February and March 2009. PLDT expects BTF's stake to be transferred to affiliate Metro Pacific Investment Corporation over time, also the vehicle for any future Meralco stake acquisitions. Meralco is the largest distributor of electricity in the Philippines with a customer base of 4.5 million and population coverage of about 25%. In addition to electricity distribution, its subsidiary e-Meralco Ventures Inc provides data services over a 1000-kilometre fibre-optic network. Potential telecom synergies arising from the acquisition include provision of broadband over electricity lines, access to eMVI's fibre optic network, power- poles to serve last-mile requirements and access to Meralco's rights of way. Fitch acknowledges the inherent synergies, but believes they are moderate and will take time to deliver value. The agency views the transaction primarily as a tactical move in light of San Miguel Corporation's planned entry into telecommunications, in partnership with Qatar Telecom. With an estimated stake of 27%, SMC is a major shareholder of Meralco, and expects to leverage Meralco's infrastructure to offer telecom services. Following the acquisition, PLDT's cellular business will be consolidated under wholly-owned subsidiary Smart, which will then undertake a tender offer for shares held by Piltel minority shareholders. With regard to capital management, the proposed acquisition will not impact cash-dividend payouts in 2009 and the group remains committed to its share buyback program for about 3 million common shares in 2009/10. "On aggregate, the acquisition of an effective 30.17% stake in Meralco can be accommodated within PLDT's local currency rating of 'BBB', with net adjusted leverage for FY09 expected to remain below the maximum threshold of 1.0x set by the agency," said Priya Gupta, director in Fitch's Asia- Pacific telecommunications, media and technology team. However, the Negative Outlook on the local currency rating reflects limited headroom for a further increase in net leverage, and in this regard, the agency maintains a cautious view with respect to Meralco's weak financial position and the potential financial support that it may require. PLDT is the Philippines' incumbent and leading diversified operator, with leading market shares of cellular (c.52% at FYE08) and fixed-line (c.60% at FYE08), and a dominant share of the nascent broadband market. Its local currency rating of 'BBB'/Stable (which exceeds the sovereign local currency rating by two notches) ignores foreign currency transfer and convertibility risk, and is more reflective of its stand-alone credit profile. In terms of its foreign currency IDR, PLDT remains constrained by the country ceiling of the Republic of the Philippines, which is currently 'BB+'. The National rating of 'AAA(phl)' incorporates all the above factors and is indicative of PLDT's relative credit strength among all Philippine companies. ================= S I N G A P O R E ================= JACKLIE CONSTRUCTION: Creditors' Proofs of Debt Due on April 3 -------------------------------------------------------------- The creditors of Jacklie Construction Pte Ltd. are required to file their proofs of debt by April 3, 2009, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 LANDMARK ENGINEERING: Creditors' Proofs of Debt Due on April 3 -------------------------------------------------------------- The creditors of Landmark Engineering & Water Service Pte Ltd. are required to file their proofs of debt by April 3, 2009, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 LTF ENGINEERING: Court to Hear Wind-Up Petition on April 3 ---------------------------------------------------------- A petition to have LTF Engineering Construction Pte Ltd's operations wound up will be heard before the High Court of Singapore on April 3, 2009, at 10:00 a.m. United Overseas Bank Limited filed the petition against the company on March 12, 2009. The Plaintiff's solicitors are: Messrs Rajah & Tann LLP 4 Battery Road #15-01 Bank of China Building Singapore 049908 SINGAPORE AIRPORT: Creditors' Proofs of Debt Due on April 20 ------------------------------------------------------------ The creditors of Singapore Airport Logistics Center 2 Pte. Ltd. are required to file their proofs of debt by April 20, 2009, to be included in the company's dividend distribution. The company's liquidator is: Lau Chin Huat c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 THIS MOBILE: Court Enters Wind-Up Order --------------------------------------- On March 13, 2009, the High Court of Singapore entered an order to have This Mobile Pte Ltd's operations wound up. Standard Chartered Bank filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office 45 Maxwell Road #06-11 The URA Centre (East Wing) Singapore 069118 ====================== S O U T H A F R I C A ====================== PAMODZI GOLD: Orkney Mine Under Provisional Liquidation ------------------------------------------------------- Pamodzi Gold Ltd. said its Orkney mine received a provisional liquidation order from the High Court in Pretoria, Ron Derby and Carli Lourens at Bloomberg News report. The gold producer has until April 14 to turn Orkney around, Jan Van den Berg, co-founder of contractor Engineering Labour Hire and Mining Supplies, told Bloomberg News in an interview from Pretoria. According to the Business Report, Judge Bill Prinsloo has ruled in favour of three creditors that were seeking the provisional liquidation of the mine instead of placing the company under judicial management, which the Industrial Development Corporation (IDC) sought before the North Gauteng High Court in Pretoria. The three Orkney creditors applying for liquidation are Engineering Labour Hire and Mining Supplies, Accurate Drilling and Safety Training Practitioners, the Business Report relates. Henk Strydom, a lawyer with Strydom and Bredenkamp, as cited by the Business Report, said that a provisional liquidator could be appointed this week. As reported in the Troubled Company Reporter-Asia Pacific on Mar. 18, 2009, Bloomberg News's Ron Derby said Pamodzi is seeking funds after failing to receive an expected sum of 200 million rand (US$20 million) from Best Rock Investments LLP. The report recalled the company said Oct. 24 it completed the terms of a final 200 million rand of necessary fund raising. On Dec. 29, the report related Pamodzi said the fund raising would include an issue of call options to Best Rock Investments (Pty) Ltd. Pamodzi added in a Feb. 18 statement obtained by Bloomberg News that it hadn't received a "definitive timeline" for the receipt of funds from Best Rock. Meanwhile, Bloomberg News reported Pamodzi spokeswoman Bongi Radebe said the company will oppose a 21.8 million-rand claim in South Africa's High Court against its Orkney mine from contractor Engineering Labour Hire and Mining Supplies. The demand is in connection with outstanding payments, Jan Van den Berg told the news agency by mobile phone from Pretoria. As reported in the Troubled Company Reporter-Asia Pacific on Mar. 9, 2009, around 4,000 workers at Pamodzi Gold's Free State province mines went on strike over unpaid wages. Pamodzi, which employs 5,014 workers in South Africa, ended the 10-day strike on March 13 after paying February wages, Bloomberg News said. Mounting Losses For the nine months ended September 30, 2008, Pamodzi incurred a net loss of R427,673,000. The company recorded a R208,488,000 loss in the year ended December 31, 2007. According to Business Report, Pamodzi incurred mounting losses after selling gold below market price and with the acquisition of two gold mines early last year. As of September 30, 2008, the company's total assets and total liabilities stood at R1,917,030,000 and R1,757,518,000 respectively. Pamodzi said it will use the R400 million fund from the IDC and Pamodzi Resources for these purposes: -- R180 million to settle long outstanding creditors; -- settle the loan from MC Resources Limited and Casten Holdings Limited, shareholders of Thistle, amounting to R34.2 million; -- settle the RMB revolving credit facility of R26.8 million; and -- R160 million for future capital expansion and assumed to be split evenly between IDC loan and Pamodzi Resources loan. About Pamodzi Gold Pamodzi Gold Limited (JNB:PZG) -- http://www.pamodzigold.co.za/-- is a junior gold mining company with assets on the Witwatersrand gold basin in South Africa. The Company has gold mining operations in the East and West Rand of Gauteng Province in South Africa. The Company has acquired operations in Orkney, in the North West Province, and the President Gold mine in the Free State province. The West Rand operation consists of Pamodzi Gold West Rand (Pty) Limited (PGWR)'s Middelvlei opencast mine situated 55 kilometers southwest of Johannesburg, extracting the Black Reef ore body. The East Rand Operations consist of three underground operations, namely Grootvlei Proprietary Mines Limited (Grootvlei), Consolidated Modderfontein Mines Limited (Cons Modder) and Nigel Gold Mining Company (Pty) Limited situated on the East Rand, some 40 kilometers east of Johannesburg. The PGWR operations are an early-stage gold mining project. The PGER operations are located approximately 40 kilometers east of Johannesburg in the Springs area. ================ S R I L A N K A ================ FINANCE COMPANY: Fitch Cuts National Long-Term Rating to 'BB+' -------------------------------------------------------------- Fitch Ratings has downgraded Sri Lanka's The Finance Company PLC's National Long-term rating to 'BB+(lka)' from 'BBB(lka)', and its subordinated debentures to 'BB-(lka)' (BB minus(lka)) from 'BBB- (lka)' (BBB minus(lka)). The ratings have been placed on Rating Watch Negative. The RWN indicates that TFC's rating could be downgraded further or affirmed. The downgrade reflects the liquidity stresses faced by TFC due to adverse public perceptions on the Ceylinco Group. These perceptions are tied to the liquidity problems faced by, and subsequent collapse of, the Golden Key Credit Card Company Ltd. TFC and GK are both entities within the Ceylinco group, a large local conglomerate. GK, a specialized credit card issuer, which faced liquidity stresses in order to repay "guaranteed return investments" to its customers, went into court administered insolvency in order to structure and implement a repayment schedule for investors. GK is not regulated by the Central Bank of Sri Lanka and is not licensed to accept retail deposits. TFC, however, is regulated by the CBSL as a registered finance company and is monitored with respect to liquidity, capital adequacy, and asset quality, among other parameters. On December 27, 2008, CBSL announced that it would act under the Monetary Law Act in the event of an imminent risk to any licensed or registered financial institution, and on February 20, 2009, it announced an LKR4.2 billion stimulus package to support liquidity for distressed entities in the RFC sector. On March 18, 2009, CBSL disclosed a specific series of actions it has taken to ameliorate the situation at TFC, namely placing Lankaputhra Development Bank (a state- owned bank) as a management agent of TFC, appointment of key executives to TFC, removal of executive powers of some of the previous directors, and administrative support via a panel of experts approved by the Cabinet of Ministers. While Fitch takes some comfort in the measures announced by CBSL, it notes that the current trajectory of deposit renewals may require further liquidity and capital support. The timeliness and the quantum of such support would be critical factors in determining TFC's long-term liquidity profile and stability. Fitch also notes that TFC accounts for approximately 24% of the RFC sector, and together with its large exposure to real-estate, can be deemed as sufficiently systemically important within the RFC sector. TFC's profitability has also worsened as lending was constrained due to liquidity considerations, while asset quality remained challenged due to current macroeconomic conditions. Prior to this rating action, Fitch on December 4, 2008, revised TFC's Outlook to Negative from Stable to reflect the company's deteriorating profitability due to increased funding costs and the lack of a commensurate increase in real-estate related income. TFC is a listed RFC, with an asset base of LKR42b at December 2008 and a network of 46 branches. The Ceylinco group holds over 50% of TFC's equity. Established in 1940, TFC has primarily undertaken vehicle financing and property development financing. ===================================== U N I T E D A R A B E M I R A T E S ===================================== AMLAK FINANCE: U.A.E. Favors Merger Over Liquidation ---------------------------------------------------- Camilla Hall at Bloomberg News reports United Arab Emirates economy minister Sultan Bin Saeed al-Mansouri said merging Amlak Finance PJSC and Tamweel PJSC would be a "good option" rather than liquidating them. According to the report, the government rescued the two lenders in November, taking them into state control, after they suspended new home loans. The state set up a committee last month to decide whether to merge, liquidate or restructure the two companies separately, the report says. Dubai, U.A.E.-based Amlak Finance PJSC (DFM:AMLAK) --- http://www.amlakfinance.com/--- provides financial solutions in accordance to the Islamic Sharia principals. The Company is primarily engaged in financing and investment activities, such as Ijara, Murabaha, Mudaraba and Musharaka. Its products and services include a range of tailor-made short, long and medium- term financial solutions, such as Home Finance, Amlak Bonus Re- financing, Amlak Bayti � Home Building Finance and Amlak Buy-To- Rent services. The Company has three wholly owned subsidiaries, Amlak Finance & Real Estate Investment SAE, Egypt; Amlak International LLC � Dubai, United Arab Emirates, and Amlak Holding FZCo, United Arab Emirates. It also operates three wholly owned special purpose vehicles based in the United Arab Emirates, namely Park Investment LLC, Tasabeeh Investment LLC and Waraqaa Heights LLC. On November 24, 2008, Amlak Finance PJSC and Tamweel PJSC announced that the two companies will merge to create the UAE Real Estate Bank. TAMWEEL PJSC: U.A.E. Doesn't Favor Liquidation, Bloomberg Says -------------------------------------------------------------- Camilla Hall at Bloomberg News reports United Arab Emirates economy minister Sultan Bin Saeed al-Mansouri said merging Amlak Finance PJSC and Tamweel PJSC would be a "good option" rather than liquidating them. According to the report, the government rescued the two lenders in November, taking them into state control, after they suspended new home loans. The state set up a committee last month to decide whether to merge, liquidate or restructure the two companies separately, the report says. Dubai, U.A.E.-based Tamweel PJSC (DFM:TAMWEEL) --- http://www.tamweel.ae/--- provides financial solutions in accordance to the Islamic Sharia principals. The Company is primarily engaged in financing and investing activities, as well as involved in the business of property development and trading. Its finance solutions include Forward Ijara, a finance solution for homes under construction; Flexi Ijara, a finance solution for payments on flexible profit basis; Fixed Ijara, a finance solution for payments on fixed profit basis; Pre-Approval Finance Facility, a finance approval before selection of a home; Murabaha, a finance solution for a ready property on deferred payment terms; Yusr, a Sharia-compliant adjustable repayment mortgage product for up to three years, and Baiti, a product specially designed for buying or building a house for United Arab Emirates nationals. On November 24, 2008, Tamweel PJSC and Amlak Finance PJSC announced that the two companies will merge to create the UAE Real Estate Bank. =============== X X X X X X X X =============== * BOND PRICING: For the Week March 16 to March 20, 2009 ------------------------------------------------------- AUSTRALIA --------- A&R Whitcoulls 9.500% 12/15/10 NZS 54.91 Ainsworth Game 8.000% 12/31/09 AUD 0.60 Alumina Finance 2.000% 05/16/13 USD 66.30 Antares Energy 10.000% 10/31/13 AUD 1.20 Babcock & Brown Pty 8.500% 11/17/09 NZD 7.25 Becton Property Group 9.500% 06/30/10 AUD 0.14 Bemax Resources 9.375% 07/15/14 USD 39.50 Bemax Resources 9.375% 07/15/14 USD 39.50 Bounty Industries Ltd 10.000% 06/30/10 AUD 0.10 Capral Aluminum 10.000% 03/29/12 AUD 1.00 China Century 12.000% 09/30/10 AUD 0.84 CIT Group AU Ltd 6.000% 03/03/11 AUD 70.35 Com BK Australia 4.875% 12/19/23 GBP 67.30 Djerriwarrh Inv 6.500% 09/30/09 AUD 3.85 First Australian 15.000% 01/31/12 AUD 0.60 FMG Finance 9.750% 09/01/13 EUR 74.37 FMG Finance 9.750% 09/01/13 EUR 73.00 GE Cap Australia 6.000% 03/15/19 AUD 57.62 Griffin Coal Min 9.500% 12/01/16 USD 33.25 Griffin Coal Min 9.500% 12/01/16 USD 33.25 Hanson Australia 5.250% 03/15/13 USD 42.84 Heemskirk Consol 8.000% 04/29/11 AUD 2.50 Insurance Austra 5.625% 12/21/26 GBP 61.49 Jpm Au Enf Nom 1 3.500% 06/30/10 USD 1.50 Macquarie Bank 5.500% 09/19/16 GBP 71.82 Macquarie Bank 6.500% 05/31/17 GBP 35.65 Metal Storm 10.000% 09/01/09 AUD 0.08 Minerals Corp 10.500% 03/31/09 AUD 0.40 Myer Group Fin 10.194% 03/15/13 AUD 60.50 Natl Australiabk 6.750% 06/26/23 EUR 62.15 National Wealth 6.750% 06/16/26 AUD 42.34 Paladin Energy 4.500% 12/15/11 USD 73.75 Paladin Energy 5.000% 03/11/13 USD 66.81 CHINA ----- China Govt Bond 4.860% 08/10/14 CNY 00.00 Chinatrust Comm 5.625% 03/29/49 CNY 55.27 Jiangxi Copper 1.000% 09/22/16 CNY 73.55 HONG KONG --------- Bank East Asia 6.125% 03/29/49 GBP 62.37 Resparcs Funding 8.000% 12/29/49 USD 12.97 INDIA ----- Adani Enterprise 6.000% 01/27/12 USD 51.75 Aftek Infosys 1.000% 06/25/10 USD 70.00 AKSH Optifibre 1.000% 01/29/10 USD 57.50 Amtek India Ltd 0.500% 11/12/10 USD 62.95 Amtek Auto 0.500% 06/03/10 USD 74.57 Bank of Baroda 6.625% 05/25/22 USD 72.75 Canara Bank 6.365% 11/28/21 USD 73.00 Gemini Commnica 6.000% 07/18/12 EUR 52.00 Gitanjali Gems 1.000% 11/25/11 USD 37.83 Hindustan Cons 10.000% 10/25/09 INR 33.35 ICICI Bank Ltd 6.375% 04/30/22 USD 55.17 ICICI Bank Ltd 6.375% 04/30/22 USD 55.27 ICICI Bank Ltd 7.250% 08/29/49 USD 42.00 ICICI Bank Ltd 7.250% 08/29/49 USD 41.50 JCT Ltd 2.500% 04/08/11 USD 19.50 Kalindee Rail NI 0.500% 03/07/12 USD 75.00 Kei Industries 1.000% 11/30/11 USD 47.50 Radico Khaitan L 3.500% 07/27/11 USD 61.16 UTI Bank Ltd 7.250% 08/12/21 USD 70.74 INDONESIA --------- Bank Lippo TB PT 7.375% 11/22/16 USD 69.87 Indonesia Gov't 9.750% 05/15/37 IDR 74.29 Indonesia (Rep) 6.625% 02/17/37 USD 67.07 Indonesia (Rep) 6.625% 02/17/37 USD 66.00 Indonesia (Rep) 7.750% 01/17/38 USD 75.00 JAPAN ----- Aozora Bank 0.560% 06/27/12 JPY 74.79 Aozora Bank 0.660% 07/12/12 JPY 74.79 Aozora Bank 0.660% 07/27/12 JPY 74.52 Aozora Bank 0.660% 08/12/12 JPY 74.27 Aozora Bank 0.660% 08/27/12 JPY 73.96 Aozora Bank 0.660% 09/12/12 JPY 73.66 Aozora Bank 0.660% 09/27/12 JPY 73.41 Aozora Bank 0.660% 10/12/12 JPY 73.12 Aozora Bank 0.660% 10/27/12 JPY 72.87 Aozora Bank 0.660% 11/12/12 JPY 72.56 Aozora Bank 0.660% 11/27/12 JPY 72.30 Aozora Bank 1.350% 11/27/12 JPY 74.40 Aozora Bank 0.660% 12/12/12 JPY 72.03 Aozora Bank 0.660% 12/27/12 JPY 71.76 Aozora Bank 1.450% 12/27/12 JPY 74.21 Aozora Bank 0.660% 01/12/13 JPY 71.50 Aozora Bank 1.250% 01/25/13 JPY 73.10 Aozora Bank 0.660% 01/27/13 JPY 71.26 Aozora Bank 0.560% 02/12/13 JPY 70.62 Aozora Bank 0.560% 02/27/13 JPY 70.35 Aozora Bank 1.300% 02/27/13 JPY 72.73 Aozora Bank 0.560% 03/12/13 JPY 70.12 Aozora Bank 0.560% 03/27/13 JPY 69.88 Aozora Bank 0.250% 03/27/13 JPY 72.13 Aozora Bank 0.560% 04/12/13 JPY 69.59 Aozora Bank 1.300% 04/26/13 JPY 71.82 Aozora Bank 0.560% 04/27/13 JPY 69.36 Aozora Bank 0.560% 05/12/13 JPY 69.13 Aozora Bank 0.560% 05/27/13 JPY 68.85 Aozora Bank 1.600% 05/27/13 JPY 72.36 Aozora Bank 0.560% 06/12/13 JPY 68.58 Aozora Bank 0.560% 06/27/13 JPY 68.33 Aozora Bank 1.650% 06/27/13 JPY 72.07 Aozora Bank 0.560% 07/12/13 JPY 68.09 Aozora Bank 1.700% 07/26/13 JPY 71.83 Aozora Bank 0.560% 07/27/13 JPY 67.86 Aozora Bank 0.560% 08/12/13 JPY 67.59 Aozora Bank 0.560% 08/27/13 JPY 67.34 Aozora Bank 1.600% 08/27/13 JPY 71.03 Aozora Bank 0.560% 09/12/13 JPY 67.08 Aozora Bank 0.560% 09/27/13 JPY 66.86 Aozora Bank 1.800% 09/27/13 JPY 71.31 Aozora Bank 0.560% 10/12/13 JPY 66.62 Aozora Bank 0.560% 10/25/13 JPY 66.39 Aozora Bank 0.560% 11/12/13 JPY 66.11 Aozora Bank 0.560% 11/27/13 JPY 65.87 Aozora Bank 0.400% 12/12/13 JPY 65.04 Aozora Bank 0.400% 12/27/13 JPY 64.80 Aozora Bank 0.400% 01/12/14 JPY 64.58 Aozora Bank 0.400% 01/12/14 JPY 64.31 Aozora Bank 0.400% 02/12/14 JPY 64.06 Aozora Bank 0.400% 02/27/14 JPY 63.82 Aozora Bank 0.400% 03/12/14 JPY 62.62 Aozora Bank 0.400% 03/27/14 JPY 63.40 Belluna Co Ltd 1.100% 03/21/12 JPY 60.33 CSK Corporation 0.250% 09/30/13 JPY 18.50 Ebara Corp 1.700% 09/30/11 JPY 53.83 Ebara Corp 1.300% 09/30/13 JPY 40.09 ES-Con Japan Ltd 3.360% 05/10/10 JPY 44.52 Fukoku Mutual 4.500% 09/28/25 EUR 47.66 Hiroshima Bank 2.150% 05/24/13 JPY 74.36 Hiroshima Bank 1.720% 05/14/14 JPY 67.89 Hitachi Zosen 1.500% 09/30/12 JPY 59.83 JACCS Co Ltd 1.820% 09/28/15 JPY 74.26 JPN Exp Hld/Debt 0.500% 09/17/38 JPY 58.47 Kirayaka Holding 2.590% 03/22/16 JPY 66.59 NIS Group 8.060% 06/20/12 USD 41.12 Orix Corp 5.480% 11/22/11 USD 66.50 Orix Corp 2.190% 04/18/17 JPY 70.78 Pacific Golf Gro 1.000% 05/01/12 JPY 63.06 Pacific Manageme 2.800% 03/16/11 JPY 6.25 Resona Bank 3.750% 04/15/15 EUR 63.50 Resona Bank 5.986% 08/29/49 GBP 41.61 SOUTH KOREA ----------- GS Caltex Corp 6.000% 08/08/16 USD 72.83 GS Caltex Corp 5.500% 04/24/17 USD 69.75 Hynix Semi Inc. 4.500% 12/14/12 USD 71.87 Hynix Semi Inc. 7.875% 06/27/17 KRW 36.87 Hynix Semi Inc. 7.857% 06/27/17 USD 38.00 Korea Dev Bank 7.400% 10/27/21 KRW 51.47 Korea Dev Bank 7.400% 11/02/21 KRW 51.42 Korea Dev Bank 8.450% 12/15/26 KRW 74.28 Korea Elec Pwr 6.000% 12/01/26 USD 69.12 NACF 5.375% 04/26/17 USD 70.11 MALAYSIA -------- Advance Synergy Berhad 2.000% 01/26/18 MYR 0.04 Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.81 Berjaya Land Bhd 5.000% 12/30/09 MYR 2.93 Cagamas Berhad 3.640% 05/05/09 MYR 2.70 Crescendo Corp B 3.750% 01/11/16 MYR 0.07 EG Industries 5.000% 06/16/10 MYR 0.71 Huat Lai Resources 5.000% 03/28/10 MYR 0.32 Insas Berhad 8.000% 04/19/09 MYR 0.24 Kamdar Group Bhd 3.000% 11/09/09 MYR 0.10 Kretam Holdings 1.000% 08/10/10 MYR 0.99 Kumpulan Jetson 5.000% 11/27/12 MYR 0.43 Mithril Bhd 8.000% 04/05/09 MYR 0.11 Mithril Bhd 3.000% 04/05/12 MYR 0.60 Nam Fatt Corp 2.000% 06/24/11 MYR 0.17 Puncak Niaga Hld 2.500% 11/18/16 MYR 0.71 Ranhill Labuan 12.500% 10/26/11 USD 59.87 Rubberex Corp 4.000% 08/14/12 MYR 0.64 MARSHALL ISLANDS ---------------- Navios Maritime 9.500% 12/15/14 USD 54.00 NEW ZEALAND ----------- Allied Farmers 9.600% 11/15/11 NZD 36.76 Allied Nationwid 11.520% 12/29/49 NZD 35.50 BBI Ntwrks NZ Ltd 8.000% 11/30/12 NZD 15.94 Blue Star Print 9.100% 09/15/12 NZD 16.84 Capital Prop NZ 8.500% 04/15/09 NZD 20.00 Capital Prop NZ 8.000% 04/15/10 NZD 25.00 Fidelity Capital 9.250% 07/15/13 NZD 61.73 Fletcher Buildin 7.800% 03/15/09 NZD 12.50 Fletcher Buildin 7.550% 03/15/11 NZD 8.50 Fonterra 8.740% 11/29/49 NZD 62.00 Hellaby Holdings 8.500% 06/15/11 NZD 37.62 Infrastr & Util 8.500% 11/15/13 NZD 17.50 Infratil Ltd 8.500% 02/15/20 NZD 56.51 Infratil Ltd 10.180% 12/29/49 NZD 55.00 Marac Finance 10.500% 07/15/13 NZD 0.62 Nuplex Industrie 9.300% 09/15/12 NZD 43.66 Pins Securities 9.250% 01/31/14 NZD 26.74 PHILIPPINES ----------- First Gen Corp 2.500% 02/11/13 USD 56.78 Rizal Comm Bank 9.875% 10/29/49 USD 75.00 SINGAPORE --------- Avago Tech Fin 11.875% 12/01/15 USD 74.87 Capitaland Ltd. 2.950% 06/20/22 SGD 61.36 Chartered Semico 6.250% 04/04/13 USD 74.20 Chartered Semico 6.375% 08/03/15 USD 59.87 Ciliandra P Fin 10.750% 12/08/11 USD 72.00 Davomas Intl Fin 11.000% 05/09/11 USD 14.48 Empire Cap Res 9.375% 12/15/11 USD 73.00 SRI LANKA --------- Sri Lanka Govt 8.500% 01/15/12 LKR 72.86 Sri Lanka Govt 8.500% 07/15/13 LKR 74.00 Sri Lanka Govt 7.500% 08/01/13 LKR 70.86 Sri Lanka Govt 7.500% 11/01/13 LKR 69.89 THAILAND -------- Italian-Thai Dey 4.500% 06/10/13 USD 47.35 ********* 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 ***