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/raid1/www/Hosts/bankrupt/TCRAP_Public/090430.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 Thursday, April 30, 2009, Vol. 12, No. 84 Headlines A U S T R A L I A BABCOCK & BROWN: BBW Inks Agreement to Acquire Wind Energy Assets GENERAL MOTORS: Holden Workers Assured to Keep their Jobs HUNT RESORT: Goes Into Receivership LYNAS CORPORATION: Shares Put on Trading Halt C H I N A ALCATEL-LUCENT: Inks US$1.7 Bil. Contract in China HOPSON DEVELOPMENT: Moody's Cuts Corporate Family Rating to 'B2' H O N G K O N G CASATEX LIMITED ET AL: Members' Meeting Set for May 25 CENTURY REGENT: Members' Final Meeting Set for May 26 CONMAX ENGINEERING: Members' and Creditors' Meetings Set for May 7 DOUBLE HARVEST: Keung and See Step Down as Liquidators GALAXY CASINO: US$1.47 Bil. Net Loss Won't Affect S&P's 'B' Rating GRAND TOYS: Creditors' Meeting Set for May 18 ISMECA ASIA: Lai and Haughey Step Down as Liquidators MASTPOLE LIMITED: Members' Final Meeting Set for May 25 PO WAI: Members' Final Meeting Set for June 9 RUSTIC GARDEN: Members' Final Meeting Set for May 26 UNITED CHAMPION: Placed Under Voluntary Wind-Up I N D I A AHAMMED ROLLER: CRISIL Rates INR50 Million Cash Credit at 'BB' ANTHEM BIOSCIENCES: CRISIL Downgrades Cash Credit Rating to 'BB' G.S. FINANCE: RBI Cancels Certificate of Registration KANPUR LEATHER: CRISIL Puts 'B' Rating on INR200MM Working Capital MAGICRETE BUILDING: CRISIL Rates INR86.5 Mln Term Loan at 'BB-' PEEKAY ROLLER: CRISIL Places 'BB' Rating on INR60 Mln Cash Credit PEEKAY ROLLING MILLS: CRISIL Rates INR120 Mln Cash Credit at 'BB+' SESA INTERNATIONAL: CRISIL Rates INR350MM Cash Credit at 'BB' VENUS REMEDIES: CRISIL Cuts Ratings on Various Loans to 'BB+' J A P A N GODO KAISHA: Moody's Changes Ratings on Various JLOC36 Notes GODO KAISHA: Moody's Changes Ratings on Various JLOC37 Notes JAPAN AIRLINES: Doubles Annual Loss Forecast to JPY63 Bil. MARUI IMAI: Picks Isetan Mitsukoshi as Sponsor NOMURA HOLDINGS: Fitch Corrects Press Release on April 27 PIONEER CORP: Gets JPY2.5 Billion Funding From Honda Motor TAKARA LEBEN: JCR Withdraws 'BB+' Senior Debts Rating N E W Z E A L A N D LANE WALKER: Placed in Receivership S I N G A P O R E LABONE: Creditors' & Contributories' Meeting Set for May 11 X X X X X X X X * Asia Pacific Airlines Net Loss Totals US$4.3 Billion in 2008 - - - - - ================= A U S T R A L I A ================= BABCOCK & BROWN: BBW Inks Agreement to Acquire Wind Energy Assets ----------------------------------------------------------------- Babcock & Brown Wind Partners ("BBW") disclosed that it has signed an in principle agreement with Babcock & Brown International Pty Ltd ("BBIPL"), the holding company of Babcock & Brown Limited, to acquire its Australian and New Zealand wind energy project development assets, up to 100% of its US wind asset management business, and its minority interests in three of BBW's existing wind farms. In a statement, BBW said the total consideration for the acquisitions will be approximately $19.5 million. BBW will incur costs associated with the separation of these assets of approximately $8 million. Miles George, Managing Director said, "Since our separation from Babcock & Brown in December last year BBW has confirmed its strategy to be an independent, leading cost competitive provider of utility scale renewable energy, with capabilities in development, operation and management of wind farms. These acquisitions significantly enhance BBW's competitive position capturing attractive growth options for our business in Australia and securing a leading asset management capability in the US consistent with that strategy." "The outlook for renewable energy in Australia and the US remains very positive and the acquisitions will significantly add to the growth prospects and value of the Australian and US business over the medium term" he said. The acquisitions are subject to final legal documentation and regulatory approvals are required for the acquisition of the Australian and New Zealand wind energy project development assets and the minority interest in the Caprock wind farm. BBW expects to achieve financial close prior to June 30, 2009. Meanwhile, The Age reports that BBW shareholders have approved the company's name change, finalizing its separation from its troubled parent, Babcock & Brown Limited. The Age says the shareholders approved a motion for the company to become known as Infigen Energy at an extraordinary general meeting on April 28. The report, citing BBW chairman Graham Kelly, relates BBW will begin trading under the new name on the ASX within days. According to the report, the meeting also saw the approval of new incentive plans for the company's executives, who became directly employed by BBW on January 1. A motion to approve the participation of managing director Miles George in the performance rights and options plan was also passed, the report adds. The approval of the new name and pay incentives structure finalize the separation of BBW from Babcock & Brown, a process begun by the renewable energy provider late last year, the report says. About Babcock & Brown Wind Babcock & Brown Wind Partners (BBW)-- http://www.bbwindpartners.com/-- is a global wind energy company, which owns and operates a portfolio of wind farms. In December 2007, the company completed the acquisition of a 50% interest in the Enersis Portfolio of wind farms. BBW's portfolio comprises interests in 87 wind farms that have a total installed capacity of approximately 3,360 megawatts (MW). BBW is managed by Babcock & Brown Wind Partners Management Pty Limited. BBW's portfolio of assets includes wind farms in Europe, North America and the Asia Pacific. About Babcock & Brown Headquartered in Sydney, Australia, Babcock & Brown Limited (ASX:BNB) -- http://www.babcockbrown.com/-- creates, syndicates and manages investment products for itself, as a principal, and its investor clients; management of specialised listed and unlisted funds, and advising and arranging leasing, project financing and structured finance transactions. It has five segments: real estate, which engages in principal investment and investment management activities in the real estate sector; infrastructure, which engages in financial advisory, principal finance and funds management activities in the infrastructure and project finance sector; corporate and structured finance, which is engaged in the origination, structuring and participation in and management of equity and debt investments, and operating leasing, which is engaged in asset acquisition and syndication, and ongoing management of portfolios of aircraft, railcars and semi-conductor equipment. In October 2007, it acquired Bluewater. In November 2007, it acquired Coinmach Service Corp. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 13, 2009, Babcock & Brown appointed voluntary administrators after investors in the company's subordinated notes listed in New Zealand voted on March 13 against the special resolution to restructure the terms of the notes. Under the special resolution, the company's equity and subordinated note holders won't receive any return. Babcock & Brown appointed David Lombe and Simon Cathro of Deloitte Touche Tohmatsu as Voluntary Administrators. Babcock & Brown International Pty Ltd. is the holding company of Babcock & Brown Limited. GENERAL MOTORS: Holden Workers Assured to Keep their Jobs --------------------------------------------------------- General Motors Corp.'s Australian unit, Holden, has assured workers at its Adelaide factory that General Motors' decision to axe the Pontiac brand will not lead to local job losses, The Australian reports. The report, citing a Holden spokesman, says the company was "very confident" the developments in Detroit would not lead to job losses at the Elizabeth plant in Adelaide's northern suburbs. According to the report, the Elizabeth plant had previously devoted a large part of its production to making the Pontiac G8 -- a version of the Holden Commodore -- for export to the US. However, the report says Holden has drastically wound back production of the Pontiacs in a plunging US market. The Australian relates the spokesman said Holden was now focused on finding new export markets for the car. Australian Manufacturing Workers Union State Secretary John Camillo said the union was confident Holden would retain its 3,000 workers at the factory. GM has lately announced it would phase out the Pontiac brand by the end of 2010 to concentrate on its four core brands, Cadillac, Chevrolet, Buick and GMC. The company will also cut 21,000 US factory jobs by next year as part of a new viability plan to win an extension of US government aid, The Australian adds. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. For the 2008 calendar year, GM reported an adjusted net loss, excluding special items, of $16.8 billion. This compares to an adjusted net loss of $279 million. Including special items, the company reported a loss of $30.9 billion, compared to a reported loss of $43.3 billion in 2007, which included a non-cash special charge of $38.3 billion in the third quarter related to the valuation allowance against deferred tax assets. As of December 31, 2008, GM reported $91,047,000,000 in total assets, $176,387,000,000 in total liabilities, and $86,154,000,000 in stockholders' deficit. GM admitted in its viability plan submitted to the U.S. Treasury on February 17 that it considered bankruptcy scenarios, but ruled out the idea, citing that a Chapter 11 filing would result to plummeting sales, more loans required from the U.S. government, and the collapse of dealers and suppliers. Going Concern Doubt Deloitte & Touche LLP, has said there is substantial doubt about GM's ability to continue as a going concern after reviewing GM's 2008 financial report. Deloitte cited the Company's recurring losses from operations, stockholders' deficit and failure to generate sufficient cash flow to meet the Company's obligations and sustain the its operations. It said GM's future is dependent on the Company's ability to execute the Company's Viability Plan successfully or otherwise address these matters. If the Company fails to do so for any reason, the Company would not be able to continue as a going concern and could potentially be forced to seek relief through a filing under the U.S. Bankruptcy Code. Standard & Poor's Ratings Services on April 10 lowered its issue- level rating on GM's $4.5 billion senior secured revolving credit facility to 'CCC-' (one notch above the 'CC' corporate credit rating on the company) from 'CCC'. It revised the recovery rating on this facility to '2' from '1', indicating its view that lenders can expect substantial (70% to 90%) recovery in the event of a payment default. The corporate credit rating remains unchanged, at 'CC', reflecting its view of the likelihood that GM will default -- through either a bankruptcy or a distressed debt exchange. Moody's Investors Service said February 18 that the risk of a bankruptcy filing by GM and Chrysler remains high. The last rating action on GM and Chrysler was a downgrade of their Corporate Family Ratings to Ca on December 3, 2008. HUNT RESORT: Goes Into Receivership ----------------------------------- The Hunt Resort on Fitzroy Island in the Great Barrier Reef has been placed in receivership with debts of over AU$50 million, James Thomson at SmartCompany reports. The report says the resort, owned by property developer Joshua Hunt, has been undergoing a $100 million redevelopment since Mr. Hunt bought the island from Cairns tourism operator Raging Thunder for $18 million in November 2006. SmartCompany relates Raging Thunder claims Mr. Hunt still owes them $13 million after interest and penalties and subsequently called in administrators Jonathon McLeod & Partners. The report says Mr. Hunt's main lender, Bankwest, has also appointed Ferrier Hodgson as receivers. Mr. Hunt reportedly owe Bankwest just under $50 million. According to the report, Greg Moloney, from Ferrier Hodgson, told The Cairns Post that his firm will manage the resort and complete outstanding construction. "The resort will remain open and it is my intention to complete all necessary outstanding infrastructure works and to work closely with Wyndham (Wyndham Vacation Resorts is the manager)." Fitzroy Island Hunt Resort has received its fair share of publicity since opening, hosting the contestants of reality TV series The Biggest Loser and offering 500 victims of the Victorian bushfires a week's free holiday. LYNAS CORPORATION: Shares Put on Trading Halt --------------------------------------------- Shares in Lynas Corporation Ltd have gone into a trading halt pending an announcement about "additional financing" of the company, The Age reports. The report relates that Lynas requested the halt before the market opened on April 28, and will remain in place until the opening of trade tomorrow, May 1, or when the announcement is made. Lynas Corporation Limited (ASX:LYC) -- http://www.lynascorp.com/ -- is a mineral exploration company operating mainly in Australia. The Company's activities are focused primarily on the exploration and development of rare earths deposits and exploration for other mineral resources. Lynas Corporation Limited is also engaged in the planning, design and construction of a concentration plant and advanced materials processing plant. The Company's subsidiaries include Lynas Malaysia Sdn Bhd, Lynas Transales Pty Ltd, Mt Weld Niobium Pty Ltd, Mt Weld Holdings Pty Ltd, Mt Weld Rare Earths Pty Ltd, Lynas Chemet Australia Pty Ltd and Mt Weld Mining Pty Ltd. * * * The company incurred three consecutive annual net losses of AU$21.48 million, AU$6.20 million and AU$4.50 million for the year ended June 30, 2006, 2007 and 2008. ========= C H I N A ========= ALCATEL-LUCENT: Inks US$1.7 Bil. Contract in China -------------------------------------------------- Alcatel-Lucent disclosed that it has inked two framework agreements valued US$1.7 billion in total with China Mobile and China Telecom, to provide network upgrades, integration and maintenance services in 2009. As the leading operators in China, China Mobile and China Telecom were granted 3G licenses in January 2009, for TD-SCDMA and CDMA/EV-DO technologies, respectively. The agreements were secured through Alcatel-Lucent Shanghai Bell, Alcatel-Lucent's Chinese flagship company. The contracts were signed on April 27 in Washington D.C. in the presence of Li Yue,Vice President of China Mobile, Wu Andi, Chief Financial Officer of China Telecom and Mary Chan, President, Alcatel-Lucent's 4G/LTE end-to-end solutions and Dave Geary, President of Alcatel-Lucent's Wireline networks activities. Under an agreement valued approximately US$1 billion with China Mobile Alcatel-Lucent will provide its industry-leading GSM/EDGE solutions, TD-SCDMA wireless networking equipment, optical, microwave and IP transmission offerings, IP service routers, application platforms and related services In a comparable agreement with China Telecom, valued at approximately US$700 million, Alcatel-Lucent will supply its 3G CDMA/EV-DO networking equipment, application platforms, optical and IP transmission platforms, IP service routers and network maintenance services to support the rollout of the company's 3G wireless broadband network. Leveraging Alcatel-Lucent's industry leading technologies and solutions, China mobile and China Telecom will be able to further enhance their network capacity and performance, helping them provide end-users with a wide variety of high-quality mobile services. "We are honored to have been selected as a major provider of cutting-edge solutions for China Mobile and China Telecom. Alcatel-Lucent Shanghai Bell is fully committed to supporting their rapid transformation to 3G, and their smooth evolution to LTE/4G in the future," said Olivia Qiu, head of Alcatel-Lucent activities in East Asia and President of Alcatel-Lucent Shanghai Bell. "The agreements also set the stage for future collaboration with these customers on the ongoing improvement of their networks." About Alcatel-Lucent SA France-based Alcatel-Lucent SA (Euronext Paris and NYSE: ALU) -- http://www.alcatel-lucent.com/-- provides product offerings that enable service providers, enterprises and governments worldwide, to deliver voice, data and video communication services to end users. In the field of fixed, mobile and converged broadband networking, Internet protocol (IP) technologies, applications and services, the company offers the end-to-end product offerings that enable communications services for residential, business customers and customers. It has operations in more than 130 countries. It has three segments: Carrier, Enterprise and Services. The Carrier segment is organized into seven business divisions: IP, fixed access, optics, multicore, applications, code division multiple access networks and mobile access. Its Enterprise business segment provides software, hardware and services that interconnect networks, people, processes and knowledge. Its Services business segment integrates clients' networks. In October 2008, the company completed the acquisition of Motive, Inc. * * * As reported in the Troubled Company Reporter-Europe on March 5, 2009, Standard & Poor's Ratings Services lowered to 'B+' from 'BB-' its long-term corporate credit ratings and senior unsecured ratings on France-based telecom equipment and services supplier Alcatel Lucent and its subsidiary Alcatel-Lucent USA Inc. (formerly Lucent Technologies Inc.). The 'B' short-term rating on Alcatel Lucent has been affirmed. The outlook is negative. HOPSON DEVELOPMENT: Moody's Cuts Corporate Family Rating to 'B2' ---------------------------------------------------------------- Moody's Investors Service has downgraded Hopson Development Holdings Limited's corporate family rating to B2 from B1. At the same time, Moody's has downgraded Hopson's senior unsecured bond rating to B3 from B2. The outlook for both ratings remains negative. "The downgrades reflects Moody's concerns over Hopson's increasing liquidity pressure, as maturity of the RMB1.83 billion convertible bond is approaching and yet there remains no concrete refinancing plan," says Kaven Tsang, a Moody's AVP/Analyst. "This slow progress in refinancing the convertible bond and limited availability of financing options offshore exposes Hopson to significant refinancing risk," adds Tsang, also Moody's lead analyst for Hopson. "While Hopson could use internal reserves to repay the convertible bond, this would weaken the company's balance sheet liquidity and ability to support its working capital and contingent needs," he adds. Though Hopson has achieved satisfactory contracted sales in the first 4 months of 2009, its improved cash position remains insufficient to repay the convertible bond while at the same time maintaining balance sheet liquidity. It is also uncertain whether Hopson can maintain current sales progress throughout the year, given that the sustainability of the recent rebound in China's property market remains unconfirmed. Further pressuring its liquidity, Hopson has a sizable amount of committed obligations (apart from the convertible bond) which includes land payment, construction expenses and over HK$4 billion of short-term construction loan repayments within the next 12 months. The negative outlook continues to reflect Moody's concerns over the company's liquidity position in view of its significant committed expenditures and near-term refinancing needs. The ratings will be further downgraded if there is no material progress in securing committed funds or building up surplus liquidity within the next few months to service the convertible bonds. In addition, the ratings would come under pressure if Hopson (1) continues its aggressive land acquisition strategy further pressuring its liquidity position; and/or (2) sees further declines in balance sheet liquidity due to slowdown in sales or tighter bank credit. The ratings outlook, however, could return to stable if Hopson improves its liquidity position through 1) achieving sales targets; and 2) successfully refinancing or repaying maturing debt, including the convertible bond and bank loans, without impairing balance sheet liquidity. Moody's last rating action with regard to Hopson occurred on January 14, 2009, when the company's corporate family and senior unsecured ratings were downgraded to B1 and B2 respectively with a negative outlook. Hopson Development Company Holdings Limited is one of the largest property developers in China. Its principal business interests are residential developments in 4 major cities -- Guangzhou, Beijing, Shanghai and Tianjin -- and their surrounding areas. ================ H O N G K O N G ================ CASATEX LIMITED ET AL: Members' Meeting Set for May 25 ------------------------------------------------------ On May 25, 2009, a final meeting will be held for the members of: -- Casatex Limited; and -- Common Empire Investment (Hong Kong) Limited. The meeting will be held at the 10th Floor of Allied Kajima Building, 138 Gloucester Road, in Wanchai, Hong Kong. CENTURY REGENT: Members' Final Meeting Set for May 26 ----------------------------------------------------- The members of Century Regent Invesmtent Limited will hold their final meeting on May 26, 2009, at 11:30 a.m., at the 20th Floor of Tung Wai Commercial Building, 109-111 Gloucester Road, in Wanchai, Hong Kong. At the meeting, Francis Young, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CONMAX ENGINEERING: Members' and Creditors' Meetings Set for May 7 ------------------------------------------------------------------ The members and creditors of Conmax Engineering Limited will hold their final meeting on May 7, 2009, at 11:30 a.m. and 11:00 a.m., respectively, at the 12th Floor of Grand Building, 15-18 Connaught Road, in Central, Hong Kong. At the meeting, Tsang Man Hing, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. DOUBLE HARVEST: Keung and See Step Down as Liquidators ------------------------------------------------------ Au Wai Keung and Li Wai See stepped down as liquidators of Double Harvest (Asia) Limited. GALAXY CASINO: US$1.47 Bil. Net Loss Won't Affect S&P's 'B' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said that its rating and outlook on Galaxy Casino S.A. (B/Negative/--) are not immediately affected by the Hong Kong dollar 11.39 billion (US$1.47 billion) net loss of its parent, Galaxy Entertainment Group Ltd., that was mainly attributable to a HK$11 billion net writedown for Galaxy's gaming license. Although the writedown eroded the equity position of Galaxy's shareholders, the company's US$220 million debt buyback, completed in January 2009 and April 2009, minimized the impact on its leverage position. In addition, S&P's rating already factors in a writedown of the license value and the potential impact of a slowdown in Macau's gaming market from visa restrictions and an economic downturn. GRAND TOYS: Creditors' Meeting Set for May 18 --------------------------------------------- The creditors of Grand Toys International Limited will hold their meeting on May 18, 2009, at 10:30 a.m., for the purposes mentioned in Section 199, 241, 242, 243, 244, 251(1)(a), 255A(2) and 283 of the Companies Ordinance. The meeting will be held at the offices of Borrelli Walsh Limited at 1401, Level 14, Tower 1, Almiralty Centre, in 18 Harcourt Road, Hong Kong. ISMECA ASIA: Lai and Haughey Step Down as Liquidators ----------------------------------------------------- On April 15, 2009, Lai Kar Yan (Derek) and Darach E. Haughey stepped down as liquidators of Ismeca Asia, Limited. MASTPOLE LIMITED: Members' Final Meeting Set for May 25 ------------------------------------------------------- The members of Mastpole Limited will hold their final meeting on May 25, 2009, at 11:00 a.m., at Room 1305, Tower 1 of Harbour Centre, No. 1 Hok Cheung Street, Hunghom, in Kowloon, Hong Kong. At the meeting, Wong Kit Sang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PO WAI: Members' Final Meeting Set for June 9 --------------------------------------------- The members of Po Wai Kwun Yam Limited will hold their final meeting on June 9, 2009, at 3:00 p.m., at Room 1901 of CC Wu Building, 302 Hennessy Road, in Wanchai, Hong Kong. At the meeting, Liu Yiung Yi, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. RUSTIC GARDEN: Members' Final Meeting Set for May 26 ---------------------------------------------------- The members of Rustic Garden Limited will hold their final meeting on May 26, 2009, at 11:00 a.m., at 1902 MassMutual Tower, 38 Goucester Road, in Wanchai, Hong Kong. At the meeting, Ngan Lin Chun Esther, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. UNITED CHAMPION: Placed Under Voluntary Wind-Up ----------------------------------------------- At an extraordinary general meeting held on April 14, 2009, the members of United Champion Investment Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Chan Yim Wah Haven Commercial Building Flat B, 4th Floor Nos. 6-8 Tsing Fung Street, North Point Hong Kong ========= I N D I A ========= AHAMMED ROLLER: CRISIL Rates INR50 Million Cash Credit at 'BB' -------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to the bank facilities of Ahammed Roller Flour Mills Pvt Ltd (Ahammed), a Peekay group company. INR50 Million Cash Credit BB/Stable (Assigned) INR80 Million Letter of Credit P4 (Assigned) INR1 Million Bank Guarantee P4 (Assigned) The ratings reflect Ahammed's exposure to risks related to the commodity nature of its products, intense competition in the wheat products industry, and limited scale of operations. These weaknesses are mitigated by the company's long track record in the wheat flour business, and the group's above-average financial risk profile, marked by moderate gearing and debt protection measures. For arriving at the ratings, CRISIL has combined the financials of Ahammed, Peekay Steel Castings Pvt Ltd, Peekay Rolling Mills Pvt Ltd, Peekay Roller Flour Mills, and Pondy Roller Flour Mills Pvt Ltd, collectively referred to as the Peekay group. This is because all these entities have a common set of promoters and fungibility of funds. Outlook: Stable CRISIL believes that Ahammed will maintain a stable business risk profile, supported by its established track record in the North Kerala market. The outlook may be revised to 'Positive' if the company's business risk profile improves substantially on the back of improvement in its scale of operations. Conversely, the outlook may be revised to 'Negative' if reduced capacity utilisation or realisations affect the company's margins and cash flows, or if it incurs large, debt-funded capital expenditure. About the Group The Peekay group, established in 1942 by Mr. Haji P K Moidu, commenced operations by trading in wheat, rice, and sugar. In 1971, Mr. P K Ahammed (son of Mr. Moidu) took over as managing director of the group. Subsequently, the group diversified into wheat flour processing and steel manufacturing. Currently, the group manufactures steel castings, and thermo-mechanically treated (TMT) and cold-twisted (CTD) bars; it also operates wheat flour mills, plantations and charitable institutions, and has interests in real estate, construction, education, and health care. For 2007-08 (refers to financial year, April 1 to March 31), the group reported a profit after tax (PAT) of INR61.4 million on a turnover of INR3.1 billion, as against a loss of INR1.2 million on a turnover of INR2.7 billion in the previous year. Ahammed manufactures wheat products, including maida, sooji, atta, and bran. The company has an installed capacity of 70 tonnes per day, with capacity utilisation of 45 to 50 per cent. The company sells its products in North Kerala. Ahammed reported a PAT of INR0.14 million on a turnover of INR235.6 million for 2007-08, as against a loss of INR0.9 million on a turnover of INR201.5 million for 2006-07. ANTHEM BIOSCIENCES: CRISIL Downgrades Cash Credit Rating to 'BB' ---------------------------------------------------------------- CRISIL has downgraded its ratings on the bank loan facilities of Anthem Biosciences Pvt Ltd (Anthem Biosciences) to 'BB/Stable/P4' from 'BBB-/Stable/P3'. The revision in ratings reflects Anthem Biosciences' stretched liquidity position, coupled with lumpy repayment obligations. INR42.5 Million Cash Credit BB/Stable (Downgraded from BBB-/Stable) INR200 Million Long-Term Loan BB/Stable (Downgraded from BBB-/Stable) INR15 Million Letter of Credit P4 (Downgraded from P3) INR10 Million Bank Guarantee P4 (Downgraded from P3) The ratings continue to reflect the successful track record of Anthem Biosciences' promoters in the fields of biotechnology and early stage drug discovery research. The ratings are also supported by the company's low-risk business model and its strong project pipeline with orders from large multinational pharmaceutical majors. These strengths are partially mitigated by the company's short track record and limited financial flexibility due to low networth and high debt levels. Outlook: Stable CRISIL believes that the extensive experience of Anthem Biosciences' promoters will help the company establish a strong market position in the contract research outsourcing segment. The outlook could be revised to 'Negative' if the company faces continued strain on its liquidity. Conversely, the outlook may be revised to 'Positive' if Anthem Biosciences generates higher-than- expected business volumes and profitability, and improves its capital structure. About Anthem Biosciences Incorporated in June 2006, Anthem Biosciences began commercial operations in October, 2007. The company provides early stage drug discovery services to international innovator pharmaceutical and biotechnology companies. The company is an export-oriented unit with facilities located at Bangalore. For the nine months ended December 31, 2008, the company reported a profit before tax of INR32 million on net sales of INR193 million. G.S. FINANCE: RBI Cancels Certificate of Registration ----------------------------------------------------- The Reserve Bank of India has cancelled the certificate of registration granted to G.S. Finance and Investments Limited for carrying on the business of a non-banking financial institution as the company has opted to exit from the business of a non-banking financial institution. Under powers conferred by Section 45-IA (6) of the Reserve Bank of India Act, 1934, the Reserve Bank can cancel the registration certificate of a non-banking financial company. The business of a non-banking financial institution is defined in clause (a) of Section 45-I of the Reserve Bank of India Act, 1934. G.S. Finance and Investments Limited's registered office is at: No.2941 7th Main, 1st Cross Rajajinagar, II Stage Bangalore-560010 KANPUR LEATHER: CRISIL Puts 'B' Rating on INR200MM Working Capital ------------------------------------------------------------------ CRISIL has assigned its ratings of 'B/Stable' to the bank facilities of Kanpur Leather House Pvt Ltd (KLH). INR200 Million Working Capital B/Stable (Assigned) * Out of this Rs80 Million is proposed The ratings reflect KLH's small scale of operations, and weak financial risk profile marked by high gearing and low net worth. The weaknesses are mitigated by the benefits that KLH derives from its strong customer base. Outlook: Stable CRISIL believes that KLH will continue to benefit from its promoters' extensive industry experience and its strong client base. The outlook may be revised to 'Positive' if there is significant increase KLH's revenues and profitability; or increase in net worth due to by capital infusion. Conversely, the outlook may be revised to 'Negative' if the company's profit margins decline sharply; or the company's capital structure weakens due to debt-funded capital expenditure. About Kanpur Leather KLH was set up in 1997 as a proprietary concern; it was converted into a closely-held company in 2004. KLH deals in luggage under its own brand 'KLH' and also supplies corporate gift items. It has 12 exclusive KLH showrooms in West Bengal. The company is a registered vendor for supplying corporate gifts to reputed companies. KLH reported a profit after tax (PAT) of INR4 million on net sales of INR882 million for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of INR2.5 million on net sales of INR556 million for 2006-07. MAGICRETE BUILDING: CRISIL Rates INR86.5 Mln Term Loan at 'BB-' --------------------------------------------------------------- CRISIL has assigned its ratings of 'BB-/Stable' to the various bank facilities of Magicrete Building Solutions Pvt Ltd (Magicrete). INR25.0 Million Cash Credit Limit BB-/Stable (Assigned) INR86.5 Million Term Loan * BB-/Stable (Assigned) * Includes onetime Project LC of INR4.15 Cr. The ratings reflect Magicrete's exposure to risks relating to the current slowdown in the real estate market, and the promoters' limited experience in the autoclaved aerated concrete (AAC) blocks industry. These weaknesses are, however, partially offset by the benefits that the company derives from the low technology and funding risks for its AAC blocks manufacturing project. Outlook: Stable CRISIL expects Magicrete to complete implementation of the common infrastructure facilities for its project without any time or cost overruns; however, the off-take of AAC blocks is expected to be affected by the current slowdown in the real estate market. The outlook may be revised to 'Positive' if the company generates stable revenues and cash accruals. Conversely, the outlook may be revised to 'Negative' if the company reports any time or cost overruns in the commissioning of its project. About Magicrete Building Set up in April 2008 as a private limited company by Mr. Saurabh Bansal, Mr. Siddharth Bansal, Mr. Sunil Roongta, and Mr. Vinod Mittal, Magicrete plans to manufacture and market AAC blocks, which are also known as cellular concrete (CELCON). The company is setting up a manufacturing facility with AAC capacity of 150,000 cubic metres in Navsari, Gujarat, which is likely to commence commercial operations in middle of financial year 2010. PEEKAY ROLLER: CRISIL Places 'BB' Rating on INR60 Mln Cash Credit ----------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to the bank facilities of Peekay Roller Flour Mills (Peekay Roller), a Peekay group firm. INR60.00 Million Cash Credit BB/Stable (Assigned) INR100.00 Million Letter of Credit P4 (Assigned) INR2.00 Million Bank Guarantee P4 (Assigned) The ratings reflect Peekay Roller's exposure to risks related to the commodity nature of its products, intense competition in the wheat products industry, and limited scale of operations. These weaknesses are mitigated by the firm's long track record in the wheat flour business, and the group's above-average financial risk profile, marked by moderate gearing and debt protection measures. For arriving at the ratings, CRISIL has combined the financials of Peekay Roller, Ahammed Roller Flour Mills Pvt Ltd, Peekay Steel Castings Pvt Ltd, Peekay Rolling Mills Pvt Ltd, and Pondy Roller Flour Mills Pvt Ltd, collectively referred to as the Peekay group. This is because all these entities have a common set of promoters and fungibility of funds. Outlook: Stable CRISIL believes that Peekay Roller will maintain a stable business risk profile, supported by its established track record in the North Kerala market. The outlook may be revised to 'Positive' if the firm's business risk profile improves substantially on the back of improvement in its scale of operations. Conversely, the outlook may be revised to 'Negative' if reduced capacity utilisation or realisations affect the firm's margins and cash flows, or if it incurs large, debt-funded capital expenditure. About the Group The Peekay group, established in 1942 by Mr. Haji P K Moidu, commenced operations by trading in wheat, rice, and sugar. In 1971, Mr. P K Ahammed (son of Mr. Moidu) took over as managing director of the group. Subsequently, the group diversified into wheat flour processing and steel manufacturing. Currently, the group manufactures steel castings, and thermo-mechanically treated (TMT) and cold-twisted (CTD) bars; it also operates wheat flour mills, plantations and charitable institutions, and has interests in real estate, construction, education, and health care. For 2007-08 (refers to financial year, April 1 to March 31), the group reported a profit after tax (PAT) of INR61.4 million on a turnover of INR3.1 billion, as against a loss of INR1.2 million on a turnover of INR2.7 billion in the previous year. Peekay Roller manufactures wheat products, including maida, sooji, atta, and bran. The firm has an installed capacity of 110 tonnes per day, with capacity utilisation of 45 to 50 per cent. The firm sells its products in North Kerala. Peekay Roller reported a PAT of INR1.14 million on a turnover of INR347.0 million for 2007-08, as against a loss of INR3.9 million on a turnover of INR391.7 million for 2006-07. PEEKAY ROLLING MILLS: CRISIL Rates INR120 Mln Cash Credit at 'BB+' ----------------------------------------------------------------- CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank facilities of Peekay Rolling Mills Pvt Ltd (Peekay Rolling), a Peekay group company. INR120 Million Cash Credit BB+/Stable (Assigned) INR470 Million Letter of Credit P4 (Assigned) INR20 Million Bill Purchase P4 (Assigned) -Discounting Facility INR20 Million Bank Guarantee P4 (Assigned) The ratings reflect Peekay Rolling's exposure to risks related to volatility in raw material prices, the current economic slowdown, and cyclicality in the steel industry. These weaknesses are mitigated by the company's established presence in the thermo- mechanically treated (TMT) bars market in North Kerala, and the group's above-average financial risk profile, marked by moderate gearing and debt protection measures. For arriving at the ratings, CRISIL has combined the financials of Peekay Rolling, Peekay Steel Castings Pvt Ltd, Ahammed Roller Flour Mills Pvt Ltd, Peekay Roller Flour Mills, and Pondy Roller Flour Mills Pvt Ltd, collectively referred to as the Peekay group. This is because all these entities have a common set of promoters and fungibility of funds. Outlook: Stable CRISIL believes that Peekay Rolling will maintain a stable business risk profile over the medium term, supported by its strong track record in the rollings business in the North Kerala market. The outlook may be revised to 'Positive' if the company reports higher-than-expected revenue growth and profitability. Conversely, the outlook may be revised to 'Negative' if the company's margins and cash flows decline because of reduced capacity utilisation or realisations, or its inability to pass on increases in raw material prices to customers, or if it incurs large, debt-funded capital expenditure. About the Group The Peekay group, established in 1942 by Mr. Haji P K Moidu, commenced operations by trading in wheat, rice, and sugar. In 1971, Mr. P K Ahammed (son of Mr. Moidu) took over as managing director of the group. Subsequently, the group diversified into wheat flour processing and steel manufacturing. Currently, the group manufactures steel castings, and TMT and cold-twisted (CTD) bars; it also operates wheat flour mills, plantations and charitable institutions, and has interests in real estate, construction, education, and health care. For 2007-08 (refers to financial year, April 1 to March 31), the group reported a profit after tax (PAT) of INR61.4 million on a turnover of INR3.1 billion, as against a loss of INR1.2 million on a turnover of INR2.7 billion in the previous year. Established in 1993, Peekay Rolling manufactures TMT and CTD bars, and steel structural products. The company uses sophisticated tempcore technology imported from Belgium. For 2007-08, Peekay Rolling reported a PAT of INR 42.2 million on a turnover of INR1.3 billion, as against a PAT of INR4.7 million on a turnover of INR1.1 billion in the previous year. SESA INTERNATIONAL: CRISIL Rates INR350MM Cash Credit at 'BB' ------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to the various bank facilities of Sesa International Ltd (Sesa). INR350 Million Cash Credit/Packing BB/Stable (Assigned) Credit INR125 Million FUBP / FDBP P4 (Assigned) INR350 Million Proposed Bank Guarantee P4 (Assigned) The ratings reflect Sesa's weak financial risk profile marked by weak debt protection measures, and its inadequate risk management policies. These weaknesses are partially offset by Sesa's established presence in the steel intermediate products segment, and its established relationships with suppliers and customers. Outlook: Stable CRISIL believes that Sesa's strained financial risk profile will continue over the medium term, on account of its low profitability leading to weak debt protection measures. The outlook may be revised to 'Positive' if the company's profitability improves considerably leading to improvement in debt protection measures. Conversely, the outlook may be revised to 'Negative' if Sesa undertakes large debt-funded capital expenditure, or if there is a substantial increase in inventory levels. About Sesa International Sesa incorporated by Mr. Shankar Lal Bagri in 2002, is a star trading house. It is engaged in import and export of steel intermediate products such as sponge iron, ingots, and billets. The company imports steel intermediate products mainly from CIS, China, and Europe. Sesa reported a profit after tax (PAT) of INR9.7 million on net sales of INR1.47 billion for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of INR5.85 million on net sales of INR947.6 million for 2006-07. VENUS REMEDIES: CRISIL Cuts Ratings on Various Loans to 'BB+' ------------------------------------------------------------- CRISIL has downgraded its ratings on Venus Remedies Ltd's (VRL's) bank facilities to 'BB+/P4' from 'A-/Stable/P2+', and has placed the revised ratings on 'Rating Watch with Negative Implications'. The downgrade reflects the company's inability to refinance the upcoming payment of INR700 million on its Foreign Currency Convertible Bonds (FCCB) maturing on May 4, 2009; this is despite a comfortable gearing estimated at around 1 time as on March 31, 2009, and interest coverage estimated at 6 times in 2008-09 (refers to financial year, April 1 to March 31). According to VRL's management, the company is in discussions with FCCB investors for rollover of the repayment. INR310.00 Million Cash BB+ (Downgraded from 'A-/Stable'; Credit Limit Placed on 'Rating Watch with Negative Implications') INR30.00 Million Standby BB+ (Downgraded from 'A-/Stable'; Line of Credit Placed on 'Rating Watch with Negative Implications') INR333.10 Million Rupee BB+ (Downgraded from 'A-/Stable'; Term Loan Placed on 'Rating Watch with Negative Implications') INR6.90 Million Proposed BB+ (Downgraded from 'A-/Stable'; Long Term Bank Loan Placed on 'Rating Watch with Negative Implications') INR95.00 Million Letter P4 (Downgraded from P2+) of Credit INR25.00 Million Bank P4 (Downgraded from P2+) Guarantee The rating watch reflects uncertainty regarding the rollover of the FCCB, in the absence of any alternate funding options shared with CRISIL to meet the repayment. The ratings could be downgraded further, in case VRL fails to secure the rollover before the repayment date. The ratings continue to reflect VRL's established presence in high value critical care segment and the healthy growth in domestic and export sales. About Venus Remedies Set up in 1991 by Mr. Pawan Chaudhary, VRL manufactures both branded and generic products. The company is mainly present in the critical care segment. For 2007-08, VRL reported a profit after tax (PAT) of INR390 million on net sales of INR2130 million, against INR290 million and INR1400 million respectively in the previous year. For the nine months ended December 31, 2008, the company has reported a PAT of INR238 million on net sales of INR2 billion, compared with INR298 million and INR1.5 billion respectively during the corresponding period of the previous year. ========= J A P A N ========= GODO KAISHA: Moody's Changes Ratings on Various JLOC36 Notes ------------------------------------------------------------ Moody's Investors Service has changed the ratings for the Class B through D Notes issued by Godo Kaisha JLOC36. The notes will mature in February 2016. The individual rating actions are listed below. -- Class B, review for possible downgrade continues; previously, Aa2 placed under review for possible downgrade on April 14, 2009 -- Class C1 and Class C2, review for possible downgrade continues; previously, A2 placed under review for possible downgrade on January 16, 2009 -- Class D Note, downgraded to B2 from Baa2 and also placed under review for possible further downgrade; previously, Baa2 placed under review for possible downgrade on January 16, 2009 In January 2009, Moody's placed under review for possible downgrade the ratings of the Class C1 through D Notes, due to concerns about the collateral recovery of loans that had yet to mature, the payment at maturity of which was clouded with uncertainty at that point. These notes are also under review as part of a general review of Japanese CMBS, as announced in the press release, "Moody's places 228 tranches of 50 Japanese CMBS deals on review for possible downgrade" (April 14, 2009). Moody's additionally placed under review for possible downgrade the rating of the Class B Note on April 14, 2009. The current rating action was prompted by an Asset Business Plan (dated April 27, 2009) for one of the loans, that Moody's received from the Servicer. The action also reflects Moody's concern that the collateral recovery amount of the property may fall below the loan amount. Moody's has decided to keep under review for possible further downgrade the ratings of the Class B through D Notes. Moody's will review the other loans backing the deal, since this deal is subject to the general review of Japanese CMBS noted above. Moody's has requested additional data on the other underlying loans. Once this information has been received and examined, Moody's will decide whether to confirm or downgrade the ratings. JLOC36, effected in May 2007, represents the securitization of 34 non-recourse loans originated by Morgan Stanley Japan Securities Co., Ltd. Five of the loans have been paid in full; the transaction is currently secured by 29 loans backed by 79 properties. Moody's Investors Service is a publisher of rating opinions and research. It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold, or sell securities. GODO KAISHA: Moody's Changes Ratings on Various JLOC37 Notes ------------------------------------------------------------ Moody's Investors Service has changed the ratings for the Class A1 through D2 and Class X Notes issued by Godo Kaisha JLOC37, as follows. The notes will mature in January 2015. The individual rating actions are listed below. -- Class A1 and Class A2, review for possible downgrade continues; previously, Aaa placed under review for possible downgrade on January 20, 2009 -- Class B1 and Class B2, review for possible downgrade continues; previously, Aa2 placed under review for possible downgrade on January 20, 2009 -- Class C1 and Class C2, downgraded to Ba2 from Baa2 and also placed under review for possible further downgrade; previously, downgraded to Baa2 from A2 and placed under review for possible downgrade on March 27, 2009 -- Class D1 and Class D2, downgraded to Caa3 from B3 and also placed under review for possible further downgrade; previously, downgraded to B3 from Ba2 and placed under review for possible downgrade on March 27, 2009 -- Class X, review for possible downgrade continues; previously, Aaa placed under review for possible downgrade on January 20, 2009 Since October 2008, Moody's downgraded and maintained under review for possible further downgrade the ratings of the Class C1 through D2 Notes and placed under review for possible downgrade the ratings of the Class A1 through B2 and Class X Notes. These rating actions reflected Moody's reconsideration of its initial assumptions about the collateral recovery of residential properties and the change the rating agency made to its base case scenario for the disposition of liquidating loans. They also reflected concerns about the collateral recovery of a loan that was backed by hotel properties and matured in March 2009 ("Loan H"). These notes are also under review as part of a general review of Japanese CMBS, as announced in the press release, "Moody's places 228 tranches of 50 Japanese CMBS deals on review for possible downgrade" (April 14, 2009). The current rating actions were prompted by a Special Servicing Report (dated on April 22, 2009) that Moody's received from the Servicer, and also reflect Moody's concern that the collateral recovery of the hotels may fall far below the loan amount. The Special Servicer will develop an asset disposition report for Loan H; however, in Moody's view, collateral recovery may be considerably pressured, taking into account the locations and types of properties. Moody's has decided to keep under review for possible further downgrade the ratings of the Class A1 through D2 and Class X Notes. These current actions reflect Moody's concerns that the collateral recovery of Loan H may be subject to increasing stressed situations. Moody's will also review the other loans (in addition to Loan H) backing the deal, since this deal is subject to the general review of Japanese CMBS noted above. Moody's has requested additional data for the other underlying loans. Once this information has been received and examined, Moody's will decide whether to confirm or downgrade the ratings. JLOC37, effected in July 2007, represents the securitization of ten non-recourse loans originated by Morgan Stanley Japan Securities Co., Ltd. Three of the loans have been paid in full, and the transaction is currently secured by seven loans backed by 42 properties. Moody's Investors Service is a publisher of rating opinions and research. It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold, or sell securities. JAPAN AIRLINES: Doubles Annual Loss Forecast to JPY63 Bil. ---------------------------------------------------------- Japan Airlines has revised its consolidated financial forecast for FY2008, the year ending March 31, 2009. The Group said that due to the volatility of the economy in the last quarter of FY2008, the JAL Group has had to re-evaluate its financial forecast that was last revised on February 6, 2009. The airline said it would post a net loss of JPY63 billion for the fiscal year, which ended March 31, almost double than the previously forecasted annual net loss of JPY34 billion. The Group also expects an operating loss of JPY51 billion for the year, against a previous forecast of a JPY37 billion operating loss. The Group said the decrease in air transport demand on a global scale has been relentless has taken a toll on the JAL Group's international and domestic passenger revenue as well as international cargo revenue. Premium travel out from Japan slid against the backdrop of continuous cost-cutting measures by companies in this economic situation. Despite the pick up in outbound leisure demand from Japan as an effect of the decreased fuel surcharge and strong yen, the latter eroded both business and leisure demand from overseas, resulting in an overall drop in the operating revenue from international passengers. On the domestic front, JAL faced a decrease in the yield of individual travelers and in group passenger volume when the current recession started to affect spending in Japan. All in all, operating revenue was adjusted to JPY1.950 trillion, down JPY27 billion from the earlier forecast amidst declining passenger demands and the slump in export and import of cargo. Fervently trying to reduce cost within the company, JAL brought forward the implementation of cost-cutting measures that were originally planned to start at the beginning of FY2009. This urgency to cut costs has effectively led to a further decrease in operating expenses by JPY13 billion, cushioning to a degree, the decrease in overall operating income that is now estimated to be a loss of JPY51 billion. Deteriorating market conditions have also weakened the values of stocks held by the JAL Group. The ordinary income is revised down by a further JPY19 billion after taking into account the impairment loss on these stocks. In addition, extraordinary income from the planned sale of certain assets was included in the previous calculation of the net income estimates. However, due to the depreciation in value, sale of these assets will now not proceed as planned. Consequently, the JAL Group now expects to post an ordinary loss of JPY82 billion and a net loss of JPY63 billion. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan- based holding company that is active in five business segments through its 225 subsidiaries and 82 associated companies. The Air Transportation segment is engaged in the operation of passenger and cargo planes. The Air Transportation-Related segment is engaged in the transportation of passengers and cargoes, the preparation of in-flight food catering, the maintenance of aircraft and land equipment, as well as the fueling business. The Travel Planning and Marketing segment is involved in the planning and sale of travel packages. The Card and Leasing segment is engaged in the provision of finance, cards and leasing services. The Others segment is involved in businesses related to hotels, resorts, logistics, wholesale, retail, real estate, printing, construction, manpower dispatch, as well as information and communication. The Company has numerous global operating locations. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. * * * As reported in the Troubled Company Reporter-Asia Pacific on February 11, 2009, Moody's Investors Service changed the outlook on the Ba3 long-term debt rating and issuer rating of Japan Airlines International Co. Ltd. to negative from positive. The outlook change reflects Moody's view that JALI's profitability is likely to remain pressured amid the recent sharp decline in airline passenger demand. Japan Airlines Corporation continues to carry Standard & Poor's Ratings 'B+' LT Foreign & Local Issuer Credit. The outlook is positive. MARUI IMAI: Picks Isetan Mitsukoshi as Sponsor ------------------------------------------------ Marui Imai Inc has decided to pick Isetan Mitsukoshi Holdings Ltd to sponsor its rehabilitation efforts under court-supervised revival proceedings, Japan Today reports citing company sources. The report relates sources said the Sapporo-based retailer will announce the selection of the department store chain possibly today, April 30, when the company will endorse the decision at a board meeting. As reported in the Troubled Company Reporter-Asia Pacific on April 21, 2009, The Japan Times said financially distressed Marui Imai received rescue plans from both Takashimaya Co and Isetan Mitsukoshi Holdings Ltd. The company is expected to choose a sponsor for its rehabilitation efforts this month, at the earliest, the Times noted. Marui Imai Inc. operates department stores. Besides its flagship store in Sapporo, Marui Imai runs three other Hokkaido stores, in Hakodate, Asahikawa and Muroran. NOMURA HOLDINGS: Fitch Corrects Press Release on April 27 --------------------------------------------------------- This release clarifies the version released. In the ninth paragraph, it should be Tier 1 capital ratio of 11.3%, instead of Tier Capital ratio of 11.3%. A corrected version follows. Fitch Ratings has affirmed Nomura Holdings Inc.'s and Nomura Securities Co., Ltd.'s ratings: -- NHI: Long-term foreign and local currency Issuer Default ratings at 'BBB' with Stable Outlook, Short-term foreign and local currency IDRs at 'F2', Individual rating at 'C', Support rating at '5' and Support Rating Floor at 'NF'. -- Nomura Securities: Long-term foreign and local currency IDRs at 'BBB+' with Stable Outlook, Short-term foreign and local currency IDRs at 'F2', Individual rating at 'C', Support rating at '4' and Support Rating Floor at 'B'. In Q4FYE09, the net loss for NHI was JPY217 billion and within Fitch's expected range. As NHI raised fresh capital of JPY278 billion in March 2009, in the form of common equity, the group's capitalization remains adequate. While NHI has made net losses for five consecutive quarters and remains challenged in returning to profitability in the near term, the group's leverage and liquidity remain satisfactory. The volatility of the financial markets and the recession in Japan, together with slowing economic growth globally, will impede revenue growth while higher compensation and benefits expenses from the acquisition of Lehman Brothers business in Asia and Europe in September 2008 will pressure NHI's profitability. Though the acquisition costs of Lehman Brothers businesses are expected to decline from Q1FYE10, and NHI is focusing on costs cutting and restructuring its workforce, the difficult operating environment challenges management in translating gains from the expanded global network into sustainable profitability. The net loss in Q4FYE09 is mainly a result from write-downs of illiquid assets including real estate, impairment charges on equity holdings, acquisition costs related to Lehman Brothers acquisitions and restructuring expenses. Among NHI's five business segments, only the asset management segment was profitable making a small pre-tax profit of JPY500m; all other business segments had pre-tax losses. The 'fixed income and other' trading desks in its global market segment which made losses for past four quarters, turned profitable helping offset the losses in other trading desks (though the global markets segment overall remained in the red for the fifth consecutive quarter). NHI`s leverage and liquidity position remain adequate. It has disclosed preliminary capital ratios for the first time under Basel 2 framework, with Tier 1 Capital Ratio of 11.3% and total capital adequacy ratios of 18.1% as of FYE09. The gross leverage of 15.8x remains at a satisfactory level. Nomura Securities, the flagship broker-dealer subsidiary of the group in Japan, returned to profitability in 4QFYE09, after two quarters of losses, backed by large trading gains, though the financial markets turmoil continued to affect its commission income. The gross leverage of 17.7x is higher than the 15.3x at FYE08, but remains acceptable, while the regulatory capital adequacy ratio strengthened to 268.8% from 226.4% in FYE08. NHI is a prominent securities group in Japan with Nomura Securities as its lead unit, and the group's franchise has expanded after the acquisition of Lehman Brothers' businesses in Europe, Middle East and Asia. PIONEER CORP: Gets JPY2.5 Billion Funding From Honda Motor ---------------------------------------------------------- Pioneer Corp. said Tuesday it will receive JPY2.5 billion from Honda Motor Co. to shore up its worsening capital base and help rebuild its car electronics business, The Japan Times reports. According to the report, Pioneer will raise the funds through a third-party allocation of new shares to the automaker by the end of June. This will give Honda a 6.54 percent stake, making it Pioneer's second-largest shareholder after Sharp Corp., the Times says. "We are going to make car electronics our core business because it has high technology, quality and brand power," the Times cited Pioneer President Susumu Kotani as saying in a news conference. The Times relates that Mr. Kotani, however, warned that the company still needs to raise another JPY40 billion in the next three years and that it is mulling new partnerships to that end, without elaborating. The Wall Street Journal reports that Pioneer's reform plans for the three fiscal years ending March 2012 include closing nine of 30 group companies undertaking production in Japan and overseas and shrinking capacity at six others. The company, WSJ relates, is also laying off 5,800 full-time employees and 4,000 contract-based workers from this year. It will also reduce the total number of directors and executive officers this year to 19 from 25, WSJ adds. According to WSJ, Pioneer projected a net loss of JPY129 billion for the fiscal year that ended on March 31, slightly narrower than a JPY130 billion it projected in mid-February. It is to report full-year results May 13, WSJ says. The Troubled Company Reporter-Asia Pacific, citing AFP, reported on Apr. 23, 2009, that Pioneer Corp said it may seek an injection of public funds, amid reports the government is considering pumping about 300 million dollars into the company. About Honda Based in Japan, Honda Motor Co., Ltd. -- http://world.honda.com/ -- develops, produces and manufactures a variety of motor products, ranging from small general-purpose engines to specialty sports cars that incorporate Honda's internal combustion engine technology. Honda's business segments are motorcycle business, automobile business, financial services business, and power product and other businesses. Approximately 96% of Honda's overseas sales are made through its principal foreign sales subsidiaries, which distribute Honda's products to local wholesalers and retail dealers. Sales of Honda motorcycles, automobiles and power products in Japan are made through different distribution networks. Honda's products are sold to consumers primarily by independent retail dealers throughout Japan. About Pioneer Headquartered in Tokyo, Japan, Pioneer Corporation (TYO:6773) -- http://www.pioneer.co.jp/-- manufactures and sells electronic products. The company operates in four business segments. The Home Electronics segment offers plasma televisions, digital versatile disc players/recorders/drives, blu-ray disc players/drives, audio systems, telephones, cable television- related machines and peripheral equipment. The Car Electronics segment offers navigation systems, stereos, audio systems, speakers and peripheral products for automobile uses. The Special Permission segment offers license agreement for optical discs. The Others segment offers electroluminescence (EL) displays, factory automation (FA) equipment, electronic components and commercial audio and visual (AV) systems. The company has a global network. The company merged with its subsidiary, Pioneer Design Corporation and another Tokyo-based subsidiary, on Dec. 1, 2008. * * * As reported by the Troubled Company Reporter-Asia Pacific on April 22, 2009, Moody's Investors Service downgraded to B1 from Ba3 the local currency issuer rating for Pioneer Corporation. The ratings outlook is negative. The TCR-AP also reported on February 17, 2009, that Standard & Poor's Ratings Services lowered to 'BB-' from 'BB+' its long-term corporate credit and senior unsecured ratings on Pioneer Corp. due to rapid capital erosion experienced by the company in fiscal 2008 (ending March 31, 2009). The ratings action also reflects the risk of further deterioration in the company's financial profile due to expected net losses through fiscal 2009, related to the cost burden of structural reform. At the same time, Standard & Poor's placed the long-term corporate credit and senior unsecured debt ratings on the company on CreditWatch with negative implications. TAKARA LEBEN: JCR Withdraws 'BB+' Senior Debts Rating ----------------------------------------------------- Japan Credit Rating Agency Ltd. (JCR) has withdrawn the BB+/Stable and the J-3 ratings on senior debts and CP program of Takara Leben at the company's request. Senior debts: BB+/Stable CP: J-3 Maximum: JPY2 billion Backup Line: 0% Takara Leben is a condominium developer that was established in 1972. ==================== N E W Z E A L A N D ==================== LANE WALKER: Placed in Receivership ----------------------------------- Hundreds of staff are facing uncertain future as Lane Walker Rudkin Industries ("LWR") goes into receivership owing more than $50 million, various reports say. In a press statement released on April 28, BDO Spicers disclosed that Brian Mayo-Smith and Stephen Tubbs, partners at the firm, have been appointed joint receivers and managers of LWR. The appointment was made by LWR's bankers to protect the financial position of LWR and its subsidiary Pod while issues facing the group are resolved. The LWR operations are currently unprofitable and have incurred a substantial increase in bank debt. While the receivers now have full control over all the businesses, Mr. Tubbs noted that there would be a clear distinction in direction and day-to-day management between the LWR and Pod operations. "Information available up to this point would appear to indicate that the Pod operations are profitable and cash positive," Mr Tubbs said. "These operations will be 'ring-fenced' under a dedicated board and management structure reporting to the receivers. The current Chief Executive and Chief Financial Officer, Malcolm Walkinshaw and George Gin, will remain in place under these arrangements. We understand that the bank will provide additional finance to ensure the short-term liquidity and flexibility of the Pod businesses." Mr. Tubbs said the position was less clear in regard to the LWR businesses, and there was a need for further information before any future action could be decided. "What we can be sure of is that the decision to appoint receivers has not been taken lightly � it has become unavoidable through a significant deterioration in the overall financial position of the LWR businesses," he said. Mr. Tubbs said that until an assessment of the LWR operations had been made no decisions would be made about the ongoing trading operations. Meanwhile, continued support from employees, suppliers, customers and other stakeholders would be vital to maximise the chances of recovery for each business in the group. Mr. Tubbs said the receivers would make a further statement as soon as possible. "We understand the need of everyone involved with LWR � especially staff � for greater clarity on the issues raised by the receivership. I hope that we will be in a position to make further information available within the next two weeks." Lane Walker Rudkin Industries Limited (LWR) -- http://www.lwr.co.nz/history.htm-- is a diversified manufacturer of clothing and textiles with operations in several locations in New Zealand and Australia. Approximately 470 people are employed in textile, hosiery, underwear and garment factories in Christchurch; garment manufacture in Greytown and Pahiatua; a sock factory in Timaru; and a sports apparel factory in Brisbane. Its subsidiary Pod comprises fabric maker Designer Textiles International, clothing designer and manufacturer Michele Ann and Mollers Homewares, all located in Auckland. The group is owned by Christchurch businessman Ken Anderson, who purchased LWR in 2001 and Pod in 2007. ================= S I N G A P O R E ================= LABONE: Creditors' & Contributories' Meeting Set for May 11 ----------------------------------------------------------- The contributories and creditors of Labone Singapore Pte Ltd will hold their meeting on May 11, 2009, at 3:00 p.m. and 4:00 p.m., respectively, at 8 Wilkie Road #03-08, in Wilkie Edge Singapore 228095. At the meeting, the contributories and creditors will be asked to: -- receive an update on the status of liquidation; -- consider and if thought fit to appoint a committee of inspection; and -- discuss other business. The company's liquidators are: Chee Yoh Chuang Lim Lee Meng c/o 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 =============== X X X X X X X X =============== * Asia Pacific Airlines Net Loss Totals US$4.3 Billion in 2008 -------------------------------------------------------------- Preliminary financial performance figures for 2008 released on April 28 by the Association of Asia Pacific Airlines showed that many leading Asia Pacific airlines suffered significant losses as a result of slowing traffic volumes and sharply higher fuel costs. Combined revenues for AAPA carriers reached US$109 billion, 6% higher than the US$103 billion reported in 2007, but failed to keep pace with higher fuel costs. Oil prices for the year averaged US$97 per barrel, compared to US$72 per barrel in 2007. As a result, the AAPA fuel bill increased by almost US$10 billion, to US$38.1 billion in 2008, accounting for 35% of total costs. Since revenues failed to match the increase in fuel costs, airline profitability suffered a sharp reversal. For 2008, AAPA member airlines reported an aggregate net loss of US$4.3 billion, in marked contrast to the solid profits earned in 2007. In some cases, the results were exacerbated by losses on fuel hedging contracts and adverse currency exchange movements. Following several years of sustained growth in travel demand, the trend reversed in the second half of 2008, with figures for the full year showing AAPA international passenger numbers down 2.2%, whilst the average passenger load factor fell two percentage points to 75%. AAPA international air cargo traffic for 2008 declined by 6.7%. Commenting on the 2008 results, Mr. Andrew Herdman, AAPA's Director General said, "Airlines began the year in good heart, following record traffic levels and solidly positive financial results in 2007. Unfortunately, in 2008, we were hit by skyrocketing oil prices followed by rapidly weakening demand in the second half of the year as a result of the global economic slowdown. Consequently, revenues failed to keep pace with higher fuel costs, squeezing margins and causing many airlines to report significant losses for the year." Turning to the current outlook, Mr. Herdman added: "Oil prices have fallen back, but in every other respect the challenges we are currently facing in 2009 are even tougher than last year. In the first quarter, international air cargo volumes were down 25%, while international passenger traffic was down 11%. Airlines are taking necessary steps to respond to the crisis, whilst calling on governments, regulatory authorities and other industry partners to work cooperatively towards a sustainable recovery. The current swine flu outbreak adds a further element of unpredictability to the situation." About AAPA The Association of Asia Pacific Airlines (AAPA) is the trade association of major scheduled international airlines based in the Asia-Pacific region. The AAPA permanent secretariat is headquartered in Kuala Lumpur, Malaysia with international representation in Brussels and Washington, D.C. Collectively, the 17 AAPA member airlines carry 290 million passengers and 10 million tonnes of cargo representing approximately one-fifth of global passenger traffic and one-third of global air cargo traffic respectively, and thus play a critically important role in the ongoing development of global aviation. ********* 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 ***