/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090507.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, May 7, 2009, Vol. 12, No. 89 Headlines A U S T R A L I A AUSTRALIAN MOTOR: Lost Bid for Subsidiary's Loan Book CENTRO PROPERTIES: Sells 19 U.S. Assets for US$239 Million C H I N A CHINA CONSTRUCTION: BofA May Sell 13.5 Bln CCB Shares SANLU GROUP: Five More Companies Acquire Stake in Group H O N G K O N G BONDA KNITTING: Court to Hear Wind-Up Petition on May 20 GRIFFIN INDUSTRIES: Appoints Lui and Chun as Liquidators HOUSIN DEVELOPMENT: Appoints Lu and Kwok as Liquidators KITAKE DEVELOPMENT: Court to Hear Wind-Up Petition on June 17 LET-WIN PLASTIC: Court to Hear Wind-Up Petition on June 10 TERRA I: Moody's Downgrades Ratings on EUR37.5 Mil. Notes to 'Ba1' I N D I A AIRSERCO PRIVATE: Low Profitability Cues CRISIL 'BB-' Ratings KINGFISHER AIRLINES: Gets Rs 500cr Loan from State Bank of India NAMDHARI RICE: CRISIL Assigns 'B-' Rating on Rs.20.0 Mln Term Loan PERFECT RADIATORS: CRISIL Places 'B' Rating on Rs.62.5MM LT Loans SAAVI PACKERS: CRISIL Rates Rs.184.5 Million Long Term Loan at 'B' SHRI HARI: Low Net Worth Prompts CRISIL to Assign 'P4' Ratings VISHNU PRIYA: Debt Repayment Delays Spur CRISIL 'D' Rating J A P A N AMERICAN INT'L: Close to Selling Japan HQ for US$1-Bln, WSJ Says K O R E A HYUNDAI MOTOR: Overseas Output Surpasses Local Production in April SSANGYONG MOTOR: Court Says Firm Still Viable M A L A Y S I A ARK RESOURCES: Updates Bursa on Default Status as of April 2009 LITYAN HOLDINGS: Loan Default Totals MYR43.44 Mil. in April 2009 NEPLINE BHD: Reconciles Deviation of Financial Results NEPLINE BHD: Unable to Repay Bank Debts TENGGARA OIL: Fails to Pay MYR20.92 Million Debt as of April 30 N E W Z E A L A N D BLUE CHIP: Co-Founder Claims Parent Firm Solvent S I N G A P O R E ARMADA (SINGAPORE): Subject to Judicial Management Order INDEX HOLDINGS: Court to Hear Wind-Up Petition on May 15 T A I W A N ASUSTEK COMPUTER: Lays Off 400-500 Workers in April AU OPTRONICS: Plans to Build LCD Factory in Slovakia WAN HAI: Moody's Downgrades Corporate Family Rating to 'Ba2' - - - - - ================= A U S T R A L I A ================= AUSTRALIAN MOTOR: Lost Bid for Subsidiary's Loan Book ----------------------------------------------------- Australian Motor Finance Group Ltd (AMFG) said it has lost a bid to buy its subsidiary's loan book, The Age reports. According to the report, AMFG had participated in the first stage of the expression of interest process for the purchase of the loan book of its subsidiary, Australian Motor Finance Ltd ("AMFL"), which was being offered for sale by the receivers and managers. However, the Age relates the company said it had been advised that it would not be invited to participate in the second stage of the process. AMFG said the staff of AMFL would continue to manage the loan book pending the outcome of the sale of the loan book, the report relates. Meanwhile, the Age reports that AMFG said the Federal Court has discharged all orders against it pursuant to the receivership of a subsidiary. The report says Justice Tracey had dropped all orders against the business after it had been made a respondent to action initiated by the receivers and managers of Australian Motor Finance Ltd (AMFL) and Australian Motor Finance Corporate Pty Ltd (AMFC). The receivers were appointed by Adelaide Bank, the report notes. As reported in the Troubled Company Reporter-Asia Pacific on March 13, 2009, News.com.au said AMFG may regain control of the business of its subsidiary, Australian Motor Finance, after it went into receivership. The parent group said that the receivers had re-established the loan book and collection processes and was operating the business as a going concern, but only to manage and collect loan repayments, the report noted. The options included selling the loan portfolio to another party, allowing AMFG to refinance or purchase the loan book, managing the loan book into a refinance or taking the loan book under bank management and allowing AMFG to take back the staff and remaining company assets, the report said. Australian Motor Finance is a specialist motor vehicle financier, which provides finance to consumers and small business for the purchase or motor vehicles. CENTRO PROPERTIES: Sells 19 U.S. Assets for US$239 Million ---------------------------------------------------------- Centro Retail Trust (CER) said it has sold 19 assets in the United States since July 1, 2008. On an aggregate basis, the assets were sold for US$239 million representing a 3.6% discount to book values. After the repayment of mortgage debt and other costs, net proceeds of US$119 million were used to pay down debt related to the Centro Shopping America Trust (CSF) portfolio. This loan facility balance is now $50.0 million, the level at which operating profits can now flow from CSF to CER. This cash will be used to manage CER's current debt position. Centro Australia CEO Tony Clarke said: "The continued sale of selected assets in the US and the resultant repayment of debt will assist CER in managing its overall financial position and achieving its debt reduction goals." Centro Retail Trust (CER) is an Australian Securities Exchange (ASX) Listed Property Trust managed by Centro Properties Group. About Centro Properties Centro Properties Group (ASX:CNP)-- http://www.centro.com.au/-- is a retail investment organization specializing in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management of US$24.9 billion. * * * The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings on Centro Properties Group to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. On Jan. 16, 2009, the TCR-AP reported that Centro Properties obtained a three year extension on its AU$3.9 billion of the senior syndicated debt facility. It also obtained extension of the debt facilities within Super LLC (Centro's US joint venture investment with Centro Retail Trust (CER) and CMCS 40). ========= C H I N A ========= CHINA CONSTRUCTION: BofA May Sell 13.5 Bln CCB Shares ----------------------------------------------------- Bloomberg News' John Liu reports that China Construction Bank Corp. dropped in Hong Kong on concern Bank of America Corp. may sell part of its holding when a lockup on the stake expires today, May 7. Bank of America can sell as many as 13.5 billion shares of China Construction, or 6 percent of the Chinese lender's outstanding Hong Kong stock, according to a copy of an earlier agreement obtained by Bloomberg News. According to Bloomberg News, Bank of America owns 39.1 billion shares of China Construction, or 16.7 percent. Of those shares, 25.6 billion can't be sold before Aug. 29, 2011, the report notes. China Construction dropped 1.5 percent to HK$4.70 in Hong Kong as of 12:30 p.m., April 6, after the Financial Times said Bank of America is considering selling part of its stake, Bloomberg News says. China Construction Bank Corporation (HKG:0939) -- http://www.ccb.com/-- operates in three business segments: corporate banking, personal banking and treasury business. Its corporate banking products and services include corporate loans, trade financing, deposit taking activities, agency services, consulting and advisory services, cash management services, remittance and settlement services, custody services, and guarantee services. The Company's personal banking products and services comprise personal loans, deposit taking activities, card business, personal wealth management services, remittance services and securities agency services. The Bank operates principally in Mainland China with branches located in 31 provinces, autonomous regions and municipalities directly under the central government, and two subsidiaries located in the Bohai Rim. It also has bank branch operations in Hong Kong, Singapore, Frankfurt, Johannesburg, Tokyo and Seoul, and subsidiaries operating in Hong Kong. * * * China Construction Bank continues to carry Moody's Investors Service's 'D-' bank financial strength rating. Moody's Bank Financial Strength Ratings represent Moody's opinion of a bank's intrinsic safety and soundness and, as such, exclude certain external credit risks and credit support elements that are addressed by Moody's Bank Deposit Ratings. SANLU GROUP: Five More Companies Acquire Stake in Group ------------------------------------------------------- Five more companies bought shares previously owned by Sanlu Group Co at an auctin held Tuesday in Shijiazhuang, capital of the northern Hebei Province, Xinhua News Agency reports citing sources with the Jiahai Auction Co. Ltd. According to the report, the assets at the auction included Sanlu's shares in four Hebei-based companies and a Tianjin company -- the Tianjin Sanlu Ltd. Co, from which Sanlu held 51 percent of the shares. The report, citing an unnamed auctioneer with Jiahai, says most of the buyers were shareholders of the enterprises. According to Xinhua, two more auctions for Sanlu's remaining shares as well as trademarks and 12 patent rights, are expected to be held on May 8 and 12. As reported in the TCR-AP on Feb. 16, 2009, China Daily said Sanlu was declared bankrupt by a Chinese local court on Feb. 12, 2009. According to China Daily, the Intermediate People's Court of Shijiazhuang, capital of the northern Hebei Province, accepted the bankruptcy petition for Sanlu, who faced a CNY1.1 billion (US$161 million) debt, last December. On September 25, 2008, the TCR-AP reported that the number of children in China affected by melamine-contaminated milk has reached 53,000, with Sanlu's products found to contain the highest levels of the chemical. Melamine is used to make plastics and fertilizer, and can cause kidney stones and lead to kidney failure when consumed. The TCR-AP, citing the People's Daily Online, reported on Dec. 29, 2008, Sanlu stopped production in September last year and on Oct. 31 recalled more than 10,000 tonnes of baby formula products worth nearly CNY1 billion. About Sanlu Group Sanlu Group Co is a Chinese dairy products company based in Shijiazhuang, the capital city of Hebei Province. The state-owned company is one of the oldest and most popular brands of infant formula in China. Sanlu is 43% owned by Fonterra. ================ H O N G K O N G ================ BONDA KNITTING: Court to Hear Wind-Up Petition on May 20 -------------------------------------------------------- A petition to have Bonda Knitting Limited's operations wound up will be heard before the High Court of Hong Kong on May 20, 2009, at 9:30 a.m. Wing Hang Bank Limited filed the petition against the company on March 12, 2009. The Petitioner's solicitors are: W.K. To & Co. Wheelock House, 11th Floor 20 Pedder Street Central, Hong Kong GRIFFIN INDUSTRIES: Appoints Lui and Chun as Liquidators -------------------------------------------------------- On February 18, 2009, Kennic Lai Hang Lui and Yuen Tsz Chun Frank were appointed as liquidators of Griffin Industries Limited. The Liquidators can be reached at: Kennic Lai Hang Lui Yuen Tsz Chun Frank Messrs. Kennic L. H. Lui & Co. Ho Lee Commercial Building, 5th Floor 38-44 D'Aguilar Street Central, Hong Kong HOUSIN DEVELOPMENT: Appoints Lu and Kwok as Liquidators ------------------------------------------------------- On April 6, 2009, Lui Po San, Anthony and Kwok Tai Wi were appointed as liquidators of Housin Development Limited. The Liquidators can be reached at: Lui Po San, Anthony Kwok Tai Wi Integrity Corporate Reconstruction Limited Bel Trade Commercial Building, 18th Floor 3 Burrows Street Wanchai, Hong Kong KITAKE DEVELOPMENT: Court to Hear Wind-Up Petition on June 17 ------------------------------------------------------------- A petition to have Kitake Development Limited's operations wound up will be heard before the High Court of Hong Kong on June 17, 2009, at 9:30 a.m. Thye Nam Loong Holdings Sdn. Bhd. filed the petition against the company on April 19, 2009. The Petitioner's solicitors are: Messrs. Li, Chow & Company China Merchants Building Room 1501, 15th Floor 303 Des Voeux Road Central Hong Kong Telephone: 2840 0330 Facsimile: 2524 2555 LET-WIN PLASTIC: Court to Hear Wind-Up Petition on June 10 ---------------------------------------------------------- A petition to have Let-Win Plastic Products Factory Limited's operations wound up will be heard before the High Court of Hong Kong on June 10, 2009, at 9:30 a.m. Ko Ka Ki filed the petition against the company on April 6, 2009. The Petitioner's solicitors are: Eddie Lee & Company Nan Fung Tower Rooms 1710-12, 17th Floor 173 Des Voeux Road Central Hong Kong TERRA I: Moody's Downgrades Ratings on EUR37.5 Mil. Notes to 'Ba1' ------------------------------------------------------------------ Moody's Investors Service announced it has downgraded its rating of one class of notes issued by Terra I Mezzanine CLO, Ltd. The transaction is a replenishable synthetic Balance Sheet CDO referencing a pool of bank originated corporate loans. The credit quality of the reference portfolio has deteriorated, as indicated by the increase in the portfolio's weighted average rating factor by 30% since closing. The rating actions are the result of the revision of certain key assumptions that the agency uses to rate and monitor corporate CDOs. These revised assumptions incorporate Moody's expectation that global corporate default rates are likely to greatly exceed their historical long-term averages and reflect the heightened interdependence of credit markets in the current global economic contraction. Specifically, the changes include: (1) a 30% increase in the assumed likelihood of default for corporate credits in CDOs (2) an increase in the degree to which ratings are adjusted according to other credit indicators such as rating Reviews and Outlooks and (3) an increase in the default correlation applied to corporate portfolios as generated through a combination of higher default rates and increased asset correlations. These revised assumptions are described in greater detail in the press release published on 15 January 2009. Moody's notes that the global corporate loan sector currently has a negative outlook and has shown signs of increasing weakness in terms of credit performance. In addition, for the majority of the underlying referenced assets, the equivalent Moody's ratings used in Moody's analysis are obtained through a mapping process between the originator's internal rating scale and Moody's public rating scale. To compensate for the absence of credit indicators such as ratings reviews and outlooks in mapped ratings, a half notch stress was applied to the mapping scale. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology and its supplements for corporate synthetic CDOs as described in Moody's Special Reports and press releases below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (April 2009) -- Framework for De-Linking Hedge Counterparty Risks from Global Structured Finance Cashflow Transactions (May 2007) The rating action is: Terra I Mezzanine CLO, Ltd: (1) EUR37,500,000 Class C Floating Rate Credit-Linked Notes due 2017 -- Current Rating: Ba1 -- Prior Rating: A2 -- Prior Rating Date: January 31, 2008, assigned A2 ========= I N D I A ========= AIRSERCO PRIVATE: Low Profitability Cues CRISIL 'BB-' Ratings ------------------------------------------------------------- CRISIL has assigned its ratings of 'BB-/Negative/P4' to the bank facilities of Airserco Private Limited (Airserco). Rs.72.9 Million Long Term Loans BB-/Negative (Assigned) Rs.70.0 Million Cash Credit BB-/Negative (Assigned) Rs.20.0 Million Letter of Credit * P4 (Assigned) * Interchangeable with Bank Guarantee The ratings reflect Airserco's sub-par financial risk profile, low profitability due to intense competition, and limited ability to pass on impact of increase in project costs because of the fixed- cost nature of contracts. These rating weaknesses are mitigated by the company's average business risk profile with diversified revenue streams. Outlook: Negative CRISIL believes that the continuing competitive pressures will result in Airserco's cash flows remaining under pressure in the near to medium term, possibly leading to the need for refinancing a part of the upcoming repayment obligations. CRISIL expects support from the Fedders Lloyd group to be made available in case of financial exigencies. The rating may be downgraded in case of a slowdown in growth of revenue, also impacting profitability, or higher-than-anticipated debt-funded capital expenditure, or inability to meet upcoming term debt repayments. Conversely, the outlook may be revised to 'Stable' if the company is able to scale up operations, improve cash flow generation, and correct key debt protection metrics. About Airserco Airserco was incorporated in 1965 to provide after-sales maintenance service for the air-conditioners (ACs) sold by the group company Fedders Lloyd Corporation Ltd. Since 2005-06 (refers to financial year, April 1 to March 31), the company has diversified into three new segment: undertaking heating, ventilation, air-conditioning and refrigeration (HVAC) projects for commercial buildings, shopping malls, and indoor stadiums; installation of telecom towers; and undertaking overhead electrification (OHE) projects for the Indian Railways. For 2007-08, Airserco reported a net profit of Rs.7.06 million on net sales of Rs.853.9 million, as against a net profit of Rs.10.27 million on net sales of Rs.789.7 million in 2006-07. KINGFISHER AIRLINES: Gets Rs 500cr Loan from State Bank of India ------------------------------------------------------------------ The State Bank of India has provided Kingfisher Airlines a Rs 500 crore loan, a fourth of the Rs 2,000-crore which the airline is seeking from a consortium of banks, The Hindu Business Line reports. Sources told Business Line that the loan was sanctioned on April 30. The report relates that Kingfisher promoter Vijay Mallya held at least two meetings with senior SBI officials in Mumbai as before the loan was disbursed. The meeting between the bank and the airline comes in the backdrop of Kingfisher facing mounting losses, the report says. According to the Business Line, the airline has also been facing problems with various vendors over payment of outstanding dues. Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/ -- formerly known as Deccan Aviation Ltd, serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known for its United Breweries unit, and the carrier shares the Kingfisher brand with a popular Indian beer. UB Holdings also owns a stake in another domestic carrier, Air Deccan, whose operations it combined with Kingfisher Airlines in mid-2008. Kingfisher Airlines began flying in 2005. * * * In the financial year ended June 30, 2007, Deccan Aviation reported a net loss of INR4.2 billion, up 23% from the INR3.41 billion loss incurred in FY 2006. In the financial year ended March 31, 2008, Kingfisher Airlines reported a net loss of INR1.89 billion. NAMDHARI RICE: CRISIL Assigns 'B-' Rating on Rs.20.0 Mln Term Loan ------------------------------------------------------------------ CRISIL has assigned its ratings of 'B-/Negative/P4' to the various bank facilities of Namdhari Rice and General Mills (NRGM). Rs.50.0 Million Cash Credit Limit B-/Negative (Assigned) Rs.20.0 Million Term Loan B-/Negative (Assigned) Rs.350.0 Million Proposed Long Term B-/Negative (Assigned) Bank Loan Facility Rs.180.0 Million Export Packing Credit P4 (Assigned) The ratings reflect NRGM's weak financial risk profile, owing to the working-capital-intensive nature of the rice industry; the ratings also factor in the firm's exposure to risks relating to small scale of operations, unfavourable government policies, and increasing raw material prices. These weaknesses are, however, partially offset by the benefits that NRGM derives from the healthy growth prospects for the rice industry. Outlook: Negative CRISIL expects NRGM's financial risk profile to weaken over the medium term due to the high working capital intensity of its operations, and the debt-funded capital expenditure being undertaken by the firm. The rating maybe downgraded if there is significant deterioration in the company's financial risk profile leading to low cash accruals. The outlook may be revised to 'Stable' if the firm's profitability improves substantially with the commissioning of the new plant, or if fund infusions by promoters lead to improvement in its financial risk profile. About Namdhari Rice Set up in 1986, NRGM is a partnership firm engaged in milling, processing and selling of basmati and other rice. Exports contributed around 70 per cent to the firm's revenues in 2007-08 (refers to financial year, April 1 to March 31). The firm is also engaged in trading activities, whereby it procures rice from other mills, sorts it at its plant, and exports it. Its plant at Sirsa (Haryana) has milling and sorting capacities of 3 tonnes per hour (tph) and 8 tph, respectively. The firm is commissioning one more milling plant, with a capacity of 5 tph. For 2007-08, NRGM reported a profit after tax (PAT) of Rs. 1.8 million on net sales of Rs.407 million, as against a PAT of Rs. 0.7 million on net sales of Rs. 235 million for 2006-07. PERFECT RADIATORS: CRISIL Places 'B' Rating on Rs.62.5MM LT Loans ----------------------------------------------------------------- CRISIL has assigned its ratings of 'B/Stable/P4' to the bank facilities of Perfect Radiators & Oil Coolers Pvt Ltd (PROC). Rs.62.5 Million Long Term Loans B/Stable (Assigned) Rs.80.0 Million Cash Credit B/Stable (Assigned) Rs.40.0 Million Letter of Credit P4 (Assigned) The ratings reflect PROC's vulnerability to profitability because of volatile raw material prices and increasing competition, and the company's revenue concentration (Indian Railways accounted for over 75 per cent of its revenues in the year ended March 31, 2008). These rating weaknesses are mitigated by the company's established presence in the domestic market for locomotive radiators, and its adequate operating capabilities. Outlook: Stable CRISIL believes that PROC will gradually improve its business risk profile. The outlook may be revised to 'Positive' if PROC widens its customer base, thereby reducing dependence on Indian Railways, while maintaining a prudent capital structure. Conversely, the outlook may be revised to 'Negative' in case of a slowdown in revenue growth or if the company undertakes significant debt- funded capital expenditure. About Perfect Radiators PROC was incorporated in 1984 and taken over by the Fedders Lloyd group in 2003. The company makes radiators (both copper-brass and aluminium), radiator assemblies, and other heat exchangers for locomotive, and industrial and automotive applications, under the Perfect brand. PROC is a closely-held company and is a pioneer in India in the development and manufacture of mechanical bonded radiators for diesel locomotives. PROC reported a net profit of Rs.16 million on net sales of Rs.985 million in 2007-08 (refers to financial year, April 1 to March 31), against Rs.11 million and Rs.973 million respectively in the previous year. SAAVI PACKERS: CRISIL Rates Rs.184.5 Million Long Term Loan at 'B' ------------------------------------------------------------------ CRISIL has assigned its ratings of 'B/Stable/P4' to the bank facilities of Saavi Packers & Printers Pvt Ltd (Saavi). Rs.184.5 Million Long Term Loan B/Stable (Assigned) Rs.40.0 Million Cash Credit B/Stable (Assigned) Rs.8.5 Million Proposed Long Term B/Stable (Assigned) Bank Loan Facility Rs.10.0 Million Letter of Credit P4 (Assigned) Rs.7.0 Million Bank Guarantee P4 (Assigned) The ratings reflect Saavi's moderate financial risk profile, marked by a high gearing and low net worth, and the company's exposure to risks relating to customer and geographic concentration. These weaknesses are partially offset by the benefits that the company derives from its promoters' experience in the printing and packaging business. Outlook: Stable CRISIL expects Saavi's financial risk profile to remain moderate, and constrained by its high gearing and low net worth. The outlook may be revised to 'Positive' if the company increases its scale of operations while sustaining its profitability. Conversely, the outlook may be revised to 'Negative' in case the company undertakes any large, debt-funded capital expenditure. About Saavi Packers Saavi was set up in 1999 by members of the Patil family in Sangli. Mr. Shankar Kashid acquired the company in September 2006. The company is engaged in offset and digital printing. It also manufactures small cartons, which are typically used in the pharmaceutical industry. It has a production capacity of 1600 tonnes per annum. Saavi reported a profit after tax (PAT) of Rs. 7.2 million on net sales of Rs. 86.2 million for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of Rs. 4.9 million on net sales of Rs.41.1 million for 2006-07. SHRI HARI: Low Net Worth Prompts CRISIL to Assign 'P4' Ratings -------------------------------------------------------------- CRISIL has assigned its rating of 'P4' to the bank facilities of M/s Shri Hari Gems (SHG). Rs.150.0 Million Post Shipment Credit P4 (Assigned) Rs.60.0 Million Packing Credit P4 (Assigned) The rating reflects SHG's weak financial risk profile, marked by low net worth and below-average debt protection indicators, and moderate business risk profile, constrained by small scale of operations in the diamond industry, and weak global demand for polished diamonds. These weaknesses are, however, partially offset by the benefits that SHG derives from its promoters' experience in the diamond industry. About Shri Hari SHG, a partnership firm set up in 1999, manufactures and sells rough and polished round diamonds. The firm is head-quartered in Mumbai, and has a manufacturing facility at Surat (Gujarat). The firm had estimated sales and profit after tax (PAT) of Rs. 450 million and Rs. 2.6 million, respectively, for 2008-09 (refers to financial year, April 1 to March 31), as against sales and PAT of Rs. 460 million and Rs. 11.9 million, respectively, for 2007-08. VISHNU PRIYA: Debt Repayment Delays Spur CRISIL 'D' Rating ---------------------------------------------------------- CRISIL has downgraded its rating on the term loan of Vishnu Priya Hotels & Resorts Pvt Ltd (Vishnu Priya) to 'D' from 'BB-/Negative', as the company has defaulted on some of its rated debt obligations. Rs.370 Million Term Loan* D (Downgraded from 'BB-/Negative') * Includes proposed limit of Rs.70 million. Besides the credit strengths and weaknesses, the rating was earlier predicated on the Vishnu Priya management's declaration that the company had serviced, and would continue to service, all its financial obligations on a timely basis. However, CRISIL has now been informed that the company has been delaying on its debt obligations. This indicates that the company's management had provided incorrect declarations to CRISIL regarding timely debt servicing. About Vishnu Priya Hotels Incorporated in 2005, Vishnu Priya is developing an upscale, full- service, five-star hotel at Visakhapatnam. The hotel is aimed at the business segment, particularly foreign technicians engaged in oil and exploration, and shipping activities, in and around Visakhapatnam. The Visakhapatnam hotel, owned and developed by Vishnu Priya, will be managed and operated by JHM Interstate under the brand name 'Double Tree' by Hilton. The property will feature 124 rooms, three restaurants, a spa and gymnasium, and six presidential suites. ========= J A P A N ========= AMERICAN INT'L: Close to Selling Japan HQ for US$1-Bln, WSJ Says ---------------------------------------------------------------- American International Group Inc. is close to selling its Japanese headquarters for about US$1 billion to help pay off its government debt, The Wall Street Journal reports citing people familiar the matter. WSJ says the deal would mark as one of the largest divestitures the insurance company has made. According to WSJ, sources said a Japanese insurance company is expected to buy the 15-story building, which is located adjacent to the Imperial Palace. The report relates that AIG recently shelved plans to divest itself of its core insurance operations, including those in Asia. The company has continued to pursue the sale of real estate and other ancillary businesses, such as its aircraft-leasing unit, WSJ notes. AIG may also be nearing a deal to sell its airplane leasing business, International Lease Finance Corp., WSJ adds citing people familiar with the matter. About American International Based in New York, American International Group, Inc. (AIG), is the leading international insurance organization with operation in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. During the third quarter of 2008, requirements to post collateral in connection with AIG Financial Products Corp.'s credit default swap portfolio and other AIGFP transactions and to fund returns of securities lending collateral placed stress on AIG's liquidity. AIG's stock price declined from $22.76 on September 8, 2008, to $4.76 on September 15, 2008. On that date, AIG's long-term debt ratings were downgraded by Standard & Poor's, a division of The McGraw-Hill Companies, Inc., Moody's Investors Service and Fitch Ratings, which triggered additional requirements for liquidity. These and other events severely limited AIG's access to debt and equity markets. On September 22, 2008, AIG entered into an $85 billion revolving credit agreement with the Federal Reserve Bank of New York and, pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000 shares of Series C Perpetual, Convertible, Participating Preferred Stock to a trust for the benefit of the United States Treasury. At September 30, 2008, amounts owed under the facility created pursuant to the Fed Credit Agreement totaled $63 billion, including accrued fees and interest. Since September 30, AIG has borrowed additional amounts under the Fed Facility and has announced plans to sell assets and businesses to repay amounts owed in connection with the Fed Credit Agreement. In addition, subsequent to September 30, 2008, certain of AIG's domestic life insurance subsidiaries entered into an agreement with the NY Fed pursuant to which the NY Fed has borrowed, in return for cash collateral, investment grade fixed maturity securities from the insurance subsidiaries. On November 10, 2008, the U.S. Treasury agreed to purchase, through its Troubled Asset Relief Program, $40 billion of newly issued AIG perpetual preferred shares and warrants to purchase a number of shares of common stock of AIG equal to 2% of the issued and outstanding shares as of the purchase date. All of the proceeds will be used to pay down a portion of the Federal Reserve Bank of New York credit facility. The perpetual preferred shares will carry a 10% coupon with cumulative dividends. AIG and the Fed also agreed to revise the existing FRBNY credit facility. The loan terms were extended from two to five years to give AIG time to complete its planned asset sales in an orderly manner. The equity interest that taxpayers will hold in AIG, coupled with the warrants, will total 79.9%. At September 30, 2008, AIG had $1.022 trillion in total consolidated assets and $950.9 billion in total debts. Shareholders' equity was $71.18 billion, including the addition of $23 billion of consideration received for preferred stock not yet issued. The Troubled Company Reporter reported on March 4, 2009, that Moody's Investors Service confirmed the A3 senior unsecured debt and Prime-1 short-term debt ratings of American International Group, Inc. AIG's subordinated debt rating has been downgraded to Ba2 from Baa1. The rating outlook for AIG is negative. This rating action follows AIG's announcement of net losses of $62 billion for the fourth quarter and $99 billion for the full year of 2008, along with a revised restructuring plan supported by the U.S. Treasury and the Federal Reserve. This concludes a review for possible downgrade that was initiated on September 15, 2008. ========= K O R E A ========= HYUNDAI MOTOR: Overseas Output Surpasses Local Production in April ------------------------------------------------------------------ Hyundai Motor Co.'s overseas production surpassed exports from local plants last month, underscoring the South Korean carmaker's goal of global expansion, Yonhap News Agency reports citing company data. Hyundai's overseas output stood at 125,364 units in April, compared with 117,978 units produced domestically, according to the data obtained by the news agency. Headquartered in Seoul, South Korea, Hyundai Motor Company (SEO:005380) -- http://www.hyundai-motor.com/-- is an automobile manufacturer in Korea. The company markets the Atoz Prime, Getz, Accent, Elantra, Hyundai Coupe, Sonata, Grandeur XG and Centennial passenger cars; the Trajet, Terracan, Tucson, Santa Fe, H-1 and Matrix recreational vehicles, and commercial vehicles, which include trucks, buses, tractors, and specialty vehicles, such as refrigerated vans, ready mixed concrete (remicon) mixers and oil tankers. It operates overseas plants in North America, India and China, and research and development centers in North America, Japan and Europe. During the year ended December 31, 2007, the company produced 1,706,727 vehicles sold around the globe. * * * As reported by the Troubled Company Reporter-Asia Pacific on Jan. 16, 2009, Fitch Ratings downgraded Hyundai Motor's long-term foreign currency Issuer Default Ratings to 'BB+' from 'BBB-' (BBB minus), and the Short-term ratings to 'B' from 'F3'. The agency revised the Outlook to Negative from Stable. SSANGYONG MOTOR: Court Says Firm Still Viable --------------------------------------------- Yonhap News Agency reports that a South Korean court said Wednesday that Ssangyong Motor Co. is viable, raising hopes for the company's survival. "Ssangyong Motor's continued existence is valuable," the news agency cited the court as saying after reviewing results of audit by accounting firm Samjong KPMG Inc. Yonhap discloses that the company posted a net loss of KRW709.7 billion (US$554 million) in 2008 on sales of KRW2.5 trillion, down 20 percent from a year earlier. In the first three months of this year, Ssangyong's vehicle sales dived 76 percent to 6,471 units, the report adds. Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd. -- http://www.smotor.com/kr/index.jsp/-- is a manufacturer of automobiles primarily engaged in production of sports utility vehicles (SUVs) and recreational vehicles (RVs). The company's production is grouped into four lines: SUVs under brand names REXTON, KYRON and ACTYON; sports utility trucks (SUTs) under the brand name ACTYON Sports; passenger cars under brand name Chairman, and multi-purpose vehicles (MPVs) under the brand name Rodius. It also provides automobile parts such as coolers, engine oil filters, headlamp bulb and others. During the year ended December 31, 2007, the company had a production capacity of 219,220 units of vehicles and its actual production output was 122,857 units of vehicles. The company has two manufacturing factories in Pyeongtaek and Changwon. * * * As reported in Troubled Company Reporter-Asia Pacific on Jan. 12, 2009, the International Herald Tribune said Ssangyong filed for receivership with a Seoul district court in a bid to stave off a complete collapse. The Tribune related that the decision to file for receivership, which is similar to bankruptcy protection in the United States, came a day after the Ssangyong board met in Shanghai. "After our talks with the banks failed to produce an agreement, it became inevitable to file for court receivership to ease the critical cash flow problem," the company said in a statement obtained by the Tribune. =============== M A L A Y S I A =============== ARK RESOURCES: Updates Bursa on Default Status as of April 2009 --------------------------------------------------------------- Ark Resources Bhd and its subsidiaries disclosed with the Bursa Malaysia Securities Bhd its status on default payments to several lenders as of April 30, 2009: Lender Borrower Amount Claimed ------ -------- -------------- CIMB Bank Bhd Lankhorst Pancabumi 25,321,245 Bank Berhad Contractors S/B 39,278,848 ("LPC") 441,488 Prokhas Sdn Bhd Lankhorst Pancabumi 526,156 Contractors S/B Maybank Lankhorst Pancabumi 15,632,230 Contractors S/B Affin-ACF Finance Bhd ARK M&E Sdn Bhd 136,114 CIMB Bank, Prokhas and Maybank are exposures to LPC but secured against ARK's corporate guarantee. Under the salient terms and conditions of the Proposed Corporate Restructuring Exercise, which was approved by the Securities Commission through its letter dated April 30, 2007, these will be addressed: * the debts of Scheme Companies namely, the debt of ARK, ARK Hartanah Sdn Bhd, ARK M&E Sdn Bhd and ARK Development Sdn Bhd; * the debts of the Non-Scheme Companies but secured against ARK's corporate guarantee; and * the liquidation of Non-Scheme Companies which will result in its debts being addressed by the respective liquidator. ARK, on April 7, 2008, obtained an Order from the High Court of Malaya at Kuala Lumpur sanctioning the Proposed Corporate Restructuring Exercise pursuant to Section 176(3) of the Companies Act, 1965. About ARK Resources Berhad ARK Resources Berhad, formerly known as Lankhorst Berhad -- http://www.lankhorst.com.my/-- is an investment holding company with headquarters in Shah Alam, Malaysia. Through its subsidiaries, the Company provides civil and geotechnical engineering * * * On April 24, 2006, Lankhorst was classified as an affected listed issuer under the Bourse's Practice Note 17/2005. It was, therefore, required to submit and implement a plan to regularize its financial condition category. LITYAN HOLDINGS: Loan Default Totals MYR43.44 Mil. in April 2009 ---------------------------------------------------------------- In a regulatory filing with the Bursa Malaysia Securities Bhd, Lityan Holdings Berhad disclosed the status of its default on its credit facilities as of April 30, 2009. As of end-April 2009, Lityan Holdings owes its creditors MYR43.44 million in aggregate: Total Principal and Lender Type of Facility Interest in Default ------ ---------------- ------------------- RHB Bank Berhad Overdraft Facility MYR361,666.06 of MYR225,000/- RHB Bank Berhad Overdraft Facility 725,127.74 of MYR450,000/- Bank Islam Malaysia Letter of Credit 25,584,300.41 Berhad Labuan Facility/ Murabah Offshore Branch Working Capital (Formerly known as Financing/ Revolving Bank Islam (L) Ltd) Al-Bai-Bithaman-Ajil Facility of US$10-Mil. (Secured) Bank Islam Malaysia Revolving Al-Bai- 15,171,214.51 Berhad Labuan Bithaman-Ajil Facility Offshore Branch of US$5 million (secured) Ambank Berhad Overdraft Facility 1,595,386.24 of MYR1 million ---------------- MYR43,437,694.96 The three subsidiaries of Lityan, namely Lityan Systems Sdn. Berhad, Digital Transmission Systems Sdn. Bhd. and Lityan (L) Incorporated who have defaulted in various credit facilities to the financial institutions are not major subsidiaries of the company. Lityan is in the midst of submitting its Proposed Restructuring Scheme to the authorities for approval, looking into other business opportunities within its core activities to address its PN17 status. Headquartered in Selangor Darul Ehsan, Malaysia, Lityan Holdings Berhad -- http://www.lityan.com.my/-- sells and provides maintenance services and rental of computer equipment, peripherals, telecommunication equipment and related services. The Company's other activities include provision of building maintenance and management services, developing and marketing of new client-server programming tools and application software, operation of public mobile data network, property investment and investment holding. The Group carries out its operations in Malaysia and the Philippines. On May 10, 2005, the company was classified as an affected listed issuer pursuant to Bursa Malaysia Securities Berhad's Practice Note 17 category. On January 16, 2006, the Company entered into a conditional Restructuring Agreement to undertake the Proposed Restructuring Scheme with the intention of restoring itself onto stronger financial footing via an injection of new viable businesses. NEPLINE BHD: Reconciles Deviation of Financial Results ------------------------------------------------------ In accordance with paragraph 9.19 (34) of the Listing Requirements of Bursa Malaysia Securities Berhad, the board of directors of Nepline Berhad advised the bourse that the company's loss before taxation for the financial year ended December 31, 2008 has deviated by 2404% from the unaudited loss after taxation and minority interest of MYR5.521 million as announced on February 27, 2009. The audited total loss after taxation and minority interest stated in the aduited accounts now stands at MYR138.229 million. The deviation is due to the following circumstances: -- Allowance for Doubtful Debts and Reversal of Disposal of Investments: As recommended by the auditors, there is a provision on the Allowance for Doubtful Debts amounting to MYR27.4 million on the Trade receivables in lieu of the company�s non-collections of the debts due to the non-performing of the debtors position in the current economic global scenario. Also, in relation to the non-materialization of the Memorandum of Agreement Memorandum of Understanding entered into between Nepline Berhad with the Messrs. United Base Ventures Berhad and Messrs Trinity Marine Limited. The auditors had recommended that the reversal of MYR58,835,000.00 being the selling price for the disposal of one (1) unit of shipping vessel which had been accounted for in the consolidated accounts of Nepline Group in the financial year ending 31 December 2007 and the gains on disposal of the entire issued and paid up share capital of the company's wholly owned subsidiary, Nepline International Limited ("NIL") for the amount of MYR12,183,450 be written of from the consolidated accounts of Nepline Group in the financial year ending December 31, 2008. Though, the company had not officially terminated the agreements until pending the police investigations. -- Impairment loss on the valuation of the assets of the company. As advised by the auditors, the adjustments on the valuation of the vessels amounts to MYR17.847 million. -- Write-off on the Research & Development expenditure. There is a write-off of on the amount of MYR7.8 million on the Research & Development by the company, as recommended by the auditors. -- Provision on the Terminated and Retrenched benefit for the laid-off Employees: The company has downsized its� staff since February 2009 and had made a provision for payments of the terminated employees together the retrenchment benefits to be paid to the affected staff amounting to MYR3.640 million. The auditors had recommended to make a provision for this amount. -- Impairment loss on goodwill on consolidation and others: The auditors had recommended a provision on the impairment of loss on goodwill on consolidation amounting to MYR821,000 and for others amounting to MYR3.975 million. About Nepline Berhad Based in Kuala Lumpur, Malaysia, Nepline Berhad is engaged in the provision of transportation of goods by sea and provision of ship management services. The company operates in three segments: shipping, which involves transportation of goods by sea and provision of ship management services; land, which involves transportation of goods by land, and biotechnology, which is engaged in Extraction of lecithin from vegetable oil using high- powered ultrasound technology. Its subsidiaries include Direct holding Nepline Haulage Sdn. Bhd., Nepline Zenergy Sdn.Bhd., Nepline (Singapore) Pte. Ltd, Nepline Biotechnology Sdn. Bhd. and Nepline SPV Sdn. Bhd. On November 9, 2007, the Company acquired the remaining 10% of existing issued and paid-up capital of Nepline Zenergy Sdn Bhd (NZSB) making NZSB its 100%-owned subsidiary. On March 10, 2008, the company disposed of its interest in Nepline International Limited. * * * Nepline Berhad has been considered as an Affected Listed Issuer under Practice Note No. 17/2005 of the Bursa Malaysia Securities Berhad as: -- the company was unable to provide a solvency declaration; and -- the company's current situation with regards to the global economic scenario, which had implicated all the vessels as non-performing and the company is unable to generate any income/trades. Nepline Berhad had on Jan. 9, 2009, been served with a notice for the appointment of a Receiver over the charged assets of Nepline Berhad pursuant to three (3) Debentures dated Sept. 12, 2007, with Bank Pembangunan Malaysia Berhad. NEPLINE BHD: Unable to Repay Bank Debts --------------------------------------- In compliance with Paragraph 3.2 of PN 1, Nepline Berhad disclosed that the company is still not able to service and repay its debts with the relevant Banks and is still unable to discuss with the relevant Banks on any amicable solution for the time-being. There has been no negotiations with the relevant Banks for on any payments or restructuring of the banking facilities, since April 1, 2009. The details of the outstanding due payments as had been defaulted are: Lender Borrower Amount Due ------ -------- ---------------- Alliance Investment Bank Nepline Berhad As at May 30,2008 Berhad & Malaysian MYR1,635,506.85 Trustees Berhad (interest) As stated in the Statement of Claims MYR44,857,380.19 EXIM Bank Nepline Berhad As stated in their letter dated March 3, 2009 US$12,950,461.64 Bank Pembangunan Malaysia Nepline Berhad As at March 31, 2009 Berhad MYR10,548,787.64 Bank Pembangunan Malaysia Nepline Berhad As at March 31, 2009 Berhad MYR29,366,321.50 In addition to the announcements made on the Default of Payments by Export-Import Bank of Malaysia ("EXIM Bank") and Bank Pembangunan Malaysia Berhad; is the outstanding due of the Default of Payment for the Collatarised Loan Obligations (CLO) with Alliance Investment Bank Berhad & Malaysian Trustees Berhad (whereby the company had defaulted on the interest payments amounting to 1,644,493.15 for May 2008). At present, the company had been served with a Writ of Summons and Statement of Claims by Kerisma Berhad and Malaysian Trustees Berhad. Nepline said it has not been able to appoint any financial consultant to assist the company with the restructuring of the its financial obligations and for the preparation of the Regularisation Plan to be submitted to the authorities due to the critical cashflow constraint faced by the Company. However, Nepline is in the midst of completing the business plan as part of the Regularisation Plan to be submitted to the authorities for approval. About Nepline Berhad Based in Kuala Lumpur, Malaysia, Nepline Berhad is engaged in the provision of transportation of goods by sea and provision of ship management services. The company operates in three segments: shipping, which involves transportation of goods by sea and provision of ship management services; land, which involves transportation of goods by land, and biotechnology, which is engaged in Extraction of lecithin from vegetable oil using high- powered ultrasound technology. Its subsidiaries include Direct holding Nepline Haulage Sdn. Bhd., Nepline Zenergy Sdn.Bhd., Nepline (Singapore) Pte. Ltd, Nepline Biotechnology Sdn. Bhd. and Nepline SPV Sdn. Bhd. On November 9, 2007, the Company acquired the remaining 10% of existing issued and paid-up capital of Nepline Zenergy Sdn Bhd (NZSB) making NZSB its 100%-owned subsidiary. On March 10, 2008, the company disposed of its interest in Nepline International Limited. * * * Nepline Berhad has been considered as an Affected Listed Issuer under Practice Note No. 17/2005 of the Bursa Malaysia Securities Berhad as: -- the company was unable to provide a solvency declaration; and -- the company's current situation with regards to the global economic scenario, which had implicated all the vessels as non-performing and the company is unable to generate any income/trades. Nepline Berhad had on Jan. 9, 2009, been served with a notice for the appointment of a Receiver over the charged assets of Nepline Berhad pursuant to three (3) Debentures dated Sept. 12, 2007, with Bank Pembangunan Malaysia Berhad. TENGGARA OIL: Fails to Pay MYR20.92 Million Debt as of April 30 --------------------------------------------------------------- Tenggara Oil Bhd and its subsidiary company, Tenggara Concrete Sdn Bhd, have been unable to pay the amount of principal and interest in respect of its credit facilities as at April 30, 2009. Lender Borrower Amount Due ------ -------- ---------------- CIMB Bank Bhd TOB MYR6,622,576.33 (Southern Bank Berhad) CIMB Bnk Bhd TOB 1,388,172.41 (Bumiputra-Commerce Bank Bhd) Malayan Banking Bhd TCSB 12,904,815.62 ---------------- MYR20,915,564.36 Tenggara Oil Berhad is undertaking a divestment and restructuring exercise, which will reposition it as a service- oriented and trading group from its current resource-based businesses. Current businesses include investment holding, supply of ready mixed concrete, property holding, management and construction. As part of a corporate revamp exercise, the Company has repositioned itself in the oil and gas business, which will be its core business. The company is headquartered in Kuala Lumpur, Malaysia. Tenggara is in the process of implementing a debt-restructuring scheme with relevant parties. ==================== N E W Z E A L A N D ==================== BLUE CHIP: Co-Founder Claims Parent Firm Solvent ------------------------------------------------ The lawyers of Blue Chip co-founder Mark Bryers argued that Northern Crest Investment Limited is solvent even though the company reported a $146 million net loss in the 15 months to last March and its equity has been wiped out, The National Business Review reports. The Business Review relates that at the first liquidation hearing of Northern Crest on May 5, Mr. Bryer's lawyer argued that the books would prove that the company was solvent and should be allowed to continue operating. However, the Business Review says the company's 2008 financial statements showed that the company made a $146.2 million loss in the 15 months to March 31 and the previous 12 months were no better, with a loss of $125.4 million. Northern Crest had negative equity at March 31 of $23.4 million and also had negative cashflow from operating activities of $31.1 million. According to the report, Northern Crest financial report notes possible litigation from Robt Jones Holdings over the damages for the termination of the lease for Blue Chip's office at Qantas House and from former investor Phyllis Hudson who is claiming $280,000 in damages. In addition, the Business Review relates, accountants BDO Spicers, who audited Northern Crest financial statements, said there is not sufficient evidence in the report to satisfy them to the solvency of the company. Following a court hearing on May 5, the hearing over the Northern Crest's liquidation has been adjourned until June 2009, the report adds. As reported in the Troubled Company Reporter-Asia Pacific on March 20, 2009, The National Business Review said the Registrar of Companies filed an application to liquidate Mr. Bryers' remaining investment vehicle, Northern Crest Investments Limited, on February 18. Northern Crest Investment Limited (ASX:NOC), formerly Blue Chip Financial Solutions Limited, is a financial planning specialist, providing wealth creation opportunities for clients in Australasia using residential property solutions. The company operated in two divisions: financial services and leasing services. The financial services division is engaged in the provision of financial structuring services and investment product to a variety of clients. The leasing activities division is engaged in rental of residential property. The company sources its clients through a network of licensees and advisers in New Zealand and Australia. During the year ended December 31, 2006, the company disposed TIBL, Blue Chip Finance Limited and Enform Limited. In April 2008, the company placed its New Zealand arm into voluntary liquidation. About Blue Chip NZ Blue Chip New Zealand Ltd. is a financial services company with offices throughout New Zealand. It is a subsidiary of Blue Chip Financial Solutions Limited, now known as Northern Crest Investments. Northern Crest operates in two divisions: financial services and leasing services. The financial services division is engaged in the provision of financial structuring services and investment product to a variety of clients. The leasing activities division is engaged in rental of residential property. * * * As reported by the Troubled Company Reporter-Asia Pacific on April 15, 2008, Blue Chip New Zealand Ltd. is in voluntary liquidation, joining 20 other Blue Chip companies that are now being wound up. Blue Chip New Zealand is a subsidiary of the company of Northern Crest Investment Limited, formerly known as Blue Chip Financial Solutions Limited. ================= S I N G A P O R E ================= ARMADA (SINGAPORE): Subject to Judicial Management Order -------------------------------------------------------- On April 16, 2009, Global Maritime Investments Limited, Oceanbulk Shipping & Trading SA, AS Klaveness Chartering, Charbons Et Fuels S.A.S, Augustea Atlantica SRL, Castalia Springs Limited, Cayman Islands and Bocimar International NV filed a petition to place Armada (Singapore) Pte Ltd under judicial management. The petition will be heard before the High Court of Singapore on May 8, 2009. The Applicants' solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00, AIA Tower Singapore 048542 INDEX HOLDINGS: Court to Hear Wind-Up Petition on May 15 -------------------------------------------------------- A petition to have Index Holdings Pte Ltd's operations wound up will be heard before the High Court of Singapore on May 15, 2009, at 10:00 a.m. United Overseas Bank Limited filed the petition against the company on April 24, 2009. The Petitioner's solicitors are: Allen & Gledhill LLP One Marina Boulevard, #28-00 Singapore 018989 =========== T A I W A N =========== ASUSTEK COMPUTER: Lays Off 400-500 Workers in April --------------------------------------------------- Asustek Computer Inc. dismissed around 400 to 500 employees in April as it began the process of reorganizing its business, DigiTimes reports citing Chinese-language Commercial Times. According to the report, the paper said the layoffs accounted for 10 percent of the company's total staff and were mostly in the company's optical drive department. Based in Taipei, Taiwan, ASUSTeK Computer Inc. -- http://www.asus.com.tw-- is principally engaged in the provision of computers, communications and consumer electronics (3C) solutions. The company offers desktop motherboards, server motherboards, three-dimension graphics display cards, audio cards, laptops, servers, ultra mobile personal computers (PCs), mobile telephones, liquid crystal display (LCD) monitors, broadband products, pocket PCs, peripherals, optical storages and Eee PCs. In 2007, the company sold approximately 59 million pieces of motherboards and 7.1 million notebook computers. The company distributes its products within the domestic market and to overseas markets, including Asia-Pacific, the United States, Canada, Europe and Africa. As of December 31, 2007, the company had 19 wholly owned subsidiaries. * * * As reported by the Troubled Company Reporter-Asia Pacific on March 11, 2009, Fitch Ratings downgraded ASUSTeK Computer Inc.'s long-term foreign currency issuer default ratings to 'BB+' from 'BBB-' (BBB minus); placed on Rating Watch Negative. AU OPTRONICS: Plans to Build LCD Factory in Slovakia ---------------------------------------------------- AU Optronics Corp is near reaching a deal to build a factory for LCD panels in Slovakia, Reuters reports citing a Slovak source close to the deal. Reuters relates that the source said AU Optronics plans to invest EUR200 million ($265 million). "The project is agreed. Final details are being negotiated now," Reuter quoted the source as saying. According to the report, the source said the new factory should create 3,000 jobs, which would help ease the pain of the global financial crisis in the euro zone's new member country which has lost thousands of jobs due to weakening demand for its products in its main European markets. AU Optronics Corp. (AUO) -- http://auo.com/-- manufactures thin film transistor liquid crystal display panels (TFT-LCD). AUO provides customers a full range of panel sizes and comprehensive applications, offering TFT-LCD panels in sizes ranging from 1.5 inches to greater than 65 inches. AUO generated NT$480.2 billion (US$14.8 billion) in sales revenue in 2007 and now houses the staff of more than 42,000 employees throughout its global operations spreading across Taiwan, Mainland China, Japan, Singapore, South Korea, the U.S., and Europe. Additionally, AUO is the first pure TFT-LCD manufacturer to successfully list at the New York Stock Exchange (NYSE). WAN HAI: Moody's Downgrades Corporate Family Rating to 'Ba2' ------------------------------------------------------------ Moody's Investors Service has downgraded the corporate family rating of Wan Hai Lines Ltd. to Ba2 from Ba1. At the same time, Moody's has downgraded Wan Hai's senior unsecured bond rating to Ba3 from Ba2. The outlook for all ratings is negative. This concludes the rating review for possible downgrade initiated on 2 April 2009. "The downgrade is driven by Wan Hai's weaker-than-expected performance -- which includes a narrowing operating profit margin and a net loss -- in FY 2008 against the backdrop of the global economic slowdown and weak liner market," says Peter Choy, a Moody's Vice President and Senior Credit Officer. "Moreover, Moody's expects Wan Hai will remain exposed to such a challenging operating environment for the next one to two years; a situation which will further pressure its current financial profile," adds Choy. "Its projected credit metrics -- EBITDAR/interest of 3x -- 4.5x and Net Debt/EBITDAR of over 6.0x -- remain weak for the Ba2 rating level," says Choy. "However, Moody's draws comfort from the company's track record of operating through shipping cycles; its good access to the domestic banking market, and its leading position in the intra-Asian liner market, an area which is expected to recover faster than other sectors," says Choy. "The Ba2 rating also reflects Wan Hai's solid balance sheet liquidity and Moody's expectation that it can resolve its current non-compliance with one of the financial covenants in its loans, given its strong banking relationships," says Choy. The negative outlook reflects the downward pressure now evident on Wan Hai's operating performance, due to challenging liner market conditions in the near term. Additionally, its liquidity position could be affected by losses from its currency and oil hedging activities as well as its funding needs to pay for new vessels to be delivered in 2010. The prospect of any upward rating pressure is limited, given the negative outlook. However, the outlook could return to stable if Wan Hai can stabilize its funding arrangements and obtain adequate financing to cover payments for the new vessels to be delivered within the next 12 months. Additionally, the company has to demonstrate improvements in its operations, such that its financial profile strengthens and Net Debt/EBITDAR trends below 5.0x. Wan Hai's ratings could come under downgrade pressure relatively quickly if it appears that its non-compliance with the financial covenants in its loans cannot be resolved satisfactorily in the next 2-3 months. Furthermore, Moody's would downgrade the ratings if its EBITDAR margin remains week; or material losses arise from its derivatives or oil transactions; and/or debt leverage increases materially due to the delivery of its new vessels. Under such a scenario, EBITDAR/Interest could fall below 2.5x and Net Debt/EBITDAR rise above 6.0 -- 6.5x on a consistent basis. The last rating action was taken on April 2, 2009, when Moody's placed the ratings of Wan Hai under review for possible downgrade. Wan Hai Lines Ltd was established in February 1965 in Taiwan as a log transportation company. It was subsequently transformed into a container liner company in 1976 and was listed on the Taiwan Stock Exchange in May 1996. * * * The company continues to carry Fitch Ratings' 'BB+' long-term foreign and local currency Issuer Default ratings. The Outlook is Positive. ********* 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 ***