/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090519.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, May 19, 2009, Vol. 12, No. 97 Headlines A U S T R A L I A BBP FINANCE: Fitch Puts 'BB+' Issuer Rating on Negative Watch BV CONSTRUCTIONS: Goes Into Administration; Liquidation Confirmed FAIRFAX MEDIA: Asks Staff to Consider Nine Day Fortnight Scheme GREAT SOUTHERN: Goes Into Administration PAPER BOND: S&P Downgrades Rating on Class B Notes to 'BB+' B O T S W A N A AFRICAN COPPER: Defaults on US$21 Million Loan C H I N A CHINA EASTERN: Opens First Office in Taiwan NEO-CHINA LAND: Moody's Maintains 'Caa3' Corporate Family Rating H O N G K O N G AFA SYSTEMS ET AL: Chen and Wong Step Down as Liquidators EXTRAWORLD INTERNATIONAL: Placed Under Voluntary Wind-Up FASTER CHINA: Creditors' Proofs of Debt Due on June 5 INFORMATION TECHNOLOGY: Creditors' Proofs of Debt Due on May 29 JING GANG: Members' Final Meeting Set for June 15 KO CHUN HING: Creditors' Meeting Set for May 26 TEEYANO TRADING ET AL: Placed Under Creditors' Voluntary Wind-Up TOP SUN: Inability to Pay Debts Prompts Wind-Up Y.M. LAU: Placed Under Voluntary Wind-Up * HONG KONG: April Bankruptcy Petitions Up 56% YOY to 1,490 I N D I A ABCI INFRASTRUCTURES: CRISIL Rates INR40 Mln Term Loan at 'BB-' ADVIN TRADEFIN: CRISIL Assigns 'B' Rating on INR95.0 Mln Term Loan AKSHATA MERCANTILE: CRISIL Puts 'BB' Rating on INR57.5MM LT Loan CHAMPALAL MOTILAL: CRISIL Rates INR100.0 Mln Cash Credit at 'BB' MAYTAS INFRA: Bankers to Discuss Debt Restructuring Package NETRA MERCANTILE: CRISIL Assigns 'P4' Rating on Letter of Credit PHEONIX IMPEX: CRISIL Places 'BB' Rating on INR200 Mln Cash Credit POSCHO STEELS: CRISIL Rates INR100.0 Million Cash Credit at 'BB' RUBICON RESEARCH: CRISIL Rates INR116.9MM Rupee Term Loan at 'BB' SHRI DAMODAR: CRISIL Puts 'B+' Ratings on Various Bank Facilities SOLUBLE SILICATES: Low Net Worth Cues CRISIL 'B+' Ratings J A P A N AOZORA BANK: Incurs US$2.5 Bln Annual Loss on U.S. Investments L-JAC 5: Moody's Continues Rating Review on Various Trusts ORSO ABS: S&P Affirms Ratings on Various Trust1-SFFC Interests PANASONIC: Predicts JPY195 Billion Loss This Year TOSHIBA CORP: Sues Eight DVD Makers for Patent Infringement M A L A Y S I A BSA INTERNATIONAL: Failure to File Plan Prompts Delisting Notice HO HUP: Below Mininum Equity Triggers Another PN17 Criterion NIKKO ELECTRONICS: EMMSB Seeks Payment of MYR61,900 Loan PANGLOBAL: Insurance Unit Changes Company Name N E W Z E A L A N D AIR NEW ZEALAND: To Freeze Pay on High Earning Staff for One Year PROPERTYFINANCE: Wins Back Trustee; Withdraws Court Injunction PROVINCIAL FINANCE: Delivers Final Payment to Investors WILLIAMS AND ADAMS: Liquidators Sell Wellington and Porirua Sites P H I L I P P I N E S GLOBAL STEEL: Receives Takeover Bids from Several Groups S I N G A P O R E ARMADA (SINGAPORE): Faces Judicial Management Petition BANK OF AMERICA: Temasek Sells Stake in Firm at a Loss CHARTERED SEMICONDUCTOR: Seeks Debt Restructuring CONTINENTAL CHEMICAL: Court to Hear Wind-Up Petition on May 29 COOL AIR: Court Enters Wind-Up Order GETECH INDUSTRIES: Creditors' Meeting Set for May 27 GOH HUP: Pays Second and Final Dividend S O U T H A F R I C A * Fitch Says South Africa's Mining Output is Expected to Decline X X X X X X X X * BOND PRICING: For the Week May 11 to May 15, 2009 - - - - - ================= A U S T R A L I A ================= BBP FINANCE: Fitch Puts 'BB+' Issuer Rating on Negative Watch ------------------------------------------------------------- Fitch Ratings has placed BBP Finance Australia Pty Limited's 'BB+' Long-term Issuer Default Rating and 'BBB-' secured multi-currency term and revolving syndicated facility rating on Rating Watch Negative. At the same time, the agency has placed Flinders Power Partnership's 'BB+' Long-term IDR on RWN. BBPF is a wholly owned subsidiary of Babcock & Brown Power Limited, an Australian Stock Exchange-listed energy generator and retailer. The RWN reflects BBP's announcement that it will be issuing revised FY09 EBITDA guidance and is in ongoing discussions with BBPF's banking syndicate as to the implications of the revised guidance. Flinders Power Partnership has been put on RWN as its credit profile is aligned to that of BBPF. The RWN will be resolved when Fitch has further information on the company's financial outlook and on the progress of the discussions between BBP and BBPF's banking syndicate. BV CONSTRUCTIONS: Goes Into Administration; Liquidation Confirmed ----------------------------------------------------------------- The Border Mail reports that BV Constructions Pty Ltd, trading as Brae-Villa Homes, has been placed in administration. The report says the decision was made in Queensland Supreme Court after action taken by timber company Hyne & Son Pty Ltd. According to the report, John Shanahan, of the Brisbane branch of Korda- Mentha, confirmed Brae-Villa Homes had gone into liquidation. The report relates the liquidator said it was too soon to tell how the company's finances were positioned and records requested from the directors would help ascertain the level of debt. Company directors, Philip Whiteman and Brian Lawrence, had until May 20 to provide the documents, he said. BV Constructions Pty Ltd, trading as Brae-Villa Homes, manufactures transportable homes. FAIRFAX MEDIA: Asks Staff to Consider Nine Day Fortnight Scheme --------------------------------------------------------------- Fairfax Magazines, a unit of Fairfax Media Limited, has given full time staff until this week to consider a nine day fortnight, Radio New Zealand reports. The report, citing Fairfax Magazines' general manager, Lynley Belton, says increasing printing costs and declining advertising revenue have forced the company to find ways to make savings. Radio New Zealand relates that Fairfax Magazines staff, which is just over 100, were asked to consider a voluntary arrangement which could save jobs. According to the report, Ms. Belton said vacancies will not be filled, staff will not receive pay rises this year and some will be redeployed. Freelance rates have also been cut by 15 percent, the report notes. Credit Ratings Downgrade The Troubled Company Reporter-Asia Pacific reported on May 18, 2009, that Standard & Poor's Ratings Services lowered its long-term corporate credit and debt ratings on Fairfax Media Ltd. to 'BB+' from 'BBB-'. In addition, the rating on Fairfax's stapled preference securities (which attract intermediate equity credit from Standard & Poor's) was lowered to 'B+' from 'BB'. The outlook is stable. "Although we are disappointed with the decision of Standard & Poor's we are confident that our diversified market positions, strong balance sheet and operational focus will allow us to weather the current economic conditions and to take advantage of any upturn when it occurs," Brian McCarthy, Chief Executive Officer and Managing Director of Fairfax Media Limited said in a statement. "The Company remains comfortably within its various financial covenants." Fairfax Media, however, said that due to this change in credit rating, some margins under certain financing facilities are increased with a consequential increase in net interest expense in the 2010 financial year of approximately AU$10 million. Headquartered in Sydney, Australia, Fairfax Media Limited (ASX:FXJ) -- http://www.fxj.com.au/-- is engaged in publishing of news, information and entertainment; advertising sales in newspaper, magazine and online formats; radio broadcasting, and film and television production and distribution. In Australia, the Company's mastheads include The Sydney Morning Herald, The Age, BRW, The Sun-Herald and The Land. Its New Zealand mastheads include The Dominion Post, The Press and Cuisine. Fairfax Media online businesses include Fairfax Digital in Australia (including the news sites, smh.com.au and theage.com.au, and classified and transaction Websites), and Trade Me and stuff.co.nz in New Zealand. On November 9, 2007, it acquired the former Southern Cross Broadcasting's radio business, (including metropolitan stations 2UE in Sydney, 3AW and Magic 1278 in Melbourne, 4BC and 4BH in Brisbane, and 6PR and 96FM in Perth), the Southern Star television production and distribution business, Satellite Music Australia and associated businesses from Macquarie Media Group. GREAT SOUTHERN: Goes Into Administration ---------------------------------------- Australia's biggest agribusiness investment company has been placed in administration with debts of about AU$600 million, The Australian reports. The directors of Great Southern Limited and Great Southern Managers Australia Limited have appointed Martin Jones, Andrew Saker, Darren Weaver and James Stewart of Ferrier Hodgson as joint and several administrators of the two companies and the majority of their subsidiaries. "The Directors have been left with no alternative but to take this sad and disappointing course of action after the group’s club banks declined to continue to support the company’s restructuring program," Great Southern’s managing director Cameron Rhodes said in a statement. Mr. Rhodes said Great Southern had been working on a restructure program for the past 15 months, recognising the need to diversify its earnings and cash flow, reduce its reliance on annual MIS sales, reduce its level of gearing and to derive more value from its strategic asset base. "Earlier this year, the company continued its restructuring program by implementing a clear and comprehensive 5 point plan we believe had the capacity to deliver maximum value for all stakeholders of the group. However, while advanced in this short term plan, the company still has some reliance on MIS sales to generate short term cash flow. "Because of the increasing market uncertainty surrounding MIS sales and the funding of those sales, which were no doubt compounded following Timbercorp’s appointment of voluntary administrators on April 23, the company had begun discussions with our banks in regards to working capital and a request for the provision of a short term bridging facility which would assist the company through to asset realisations, which we had expected would generate over AU$200 million over the coming months. Despite our comprehensive plans which included the listing of cattle stations for auction in June and the sale of other non-core land holdings and not withstanding the fact that the company remained within the terms of its facilities and no debt was currently due and payable, our banking syndicate declined our request for additional support. "We very much still believe in the strategic plan we had in place and are committed to working with the administrators to capitalize on the work already done and leverage value from the Company’s substantial asset base to ensure the best possible outcome for all stakeholders. Steven Cole, independent chairman of Great Southern Managers Limited as the responsible entity for the forestry, olive, viticultural and almond projects managed by the group wanted to assure project investors that Great Southern’s management team would work closely with the administrators to ensure all project investors interests were protected to the fullest extent possible. "The GSMAL directors note that the interests of MIS investors are separate from those of the Great Southern group and that the voluntary administrators, who now displace the GSMAL board, are obligated to the same duties as were the directors of GSMAL to act in the best interests of Project investors, and to give priority to those interests," he said. The group, which manages about 43,000 investors through 45 managed investment schemes, is believed to have collapsed with bank debt of about AU$600 million, The Australian relates. The financiers are Commonwealth Bank, ANZ and BankWest (owned by CBA). Ferrier Hodgson Partner Martin Jones said the Administrators' first job will be to review the group's financial position and communicate with key stakeholders. "The Administrators will be contacting creditors within the next few days to inform them of the details of the first meeting of creditors, to be in Melbourne on Wednesday, May 27," Mr. Jones said. Great Southern owns and leases approximately 240,000 hectares of land. It also owns more than 150,000 cattle across approximately 1.5 million hectares of owned and leased land. About Great Southern Great Southern Limited (ASX:GTP) -- http://www.great- southern.com.au/ -- is engaged in the development, marketing, establishment and management of agribusiness-based projects. The Company provides finance, directly and through third party financiers, to approved investors who wish to invest in the Company's projects. The Company also acquires and manages farmland and other agribusiness related properties which are held for long term investment. It operates an agricultural investment services business offering two key products: agricultural managed investment schemes, which is provision of MIS products in the forestry and agribusiness sector, and agricultural funds management, which are agricultural investment funds providing investors exposure to a portfolio of agricultural assets. PAPER BOND: S&P Downgrades Rating on Class B Notes to 'BB+' ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on the AU$20 million Class B notes issued by Paper Bond Ltd. to 'BB+' from 'BBB-'. This rating action follows the lowering of the issuer credit rating on Fairfax Media Ltd. to 'BB+' from 'BBB', on May 14, 2009. The rating action reflects Fairfax's role as guarantor to the Class B notes. The 'AAA' rating on the Class A notes is not dependant on the rating on Fairfax as a letter of credit provided by the Commonwealth of Australia (AAA/Stable/A-1+) guarantees payment to Class A noteholders. Therefore, the rating on the Class A notes remains unaffected by the Fairfax rating downgrade. Ratings ------- Transaction To From ----------- -- ---- Paper Bond Ltd. Class B BB+ BBB- =============== B O T S W A N A =============== AFRICAN COPPER: Defaults on US$21 Million Loan ---------------------------------------------- African Copper Plc said it has received a demand calling for the immediate repayment of the entire principal amount of the bonds issued by its wholly owned subsidiary, Messina Copper (Botswana) (Proprietary) Limited, being approximately BWP150 million (US$21 million), as well as the accrued interest thereon on the basis of alleged defaults under the terms of the Bondholders Debt, the company said in a press statement Friday. The bonds were purchased by another party on May 14, African Copper said as cited by Bloomberg News. Meanwhile, the company said Natasa Mining Limited (one of the holders of the bonds issued by Messina) has lodged a petition with the High Court of Botswana for the winding up of Messina and the appointment of a provisional liquidator. Messina has been served with a copy of the petition. In addition, African Copper said there will be a short delay in filing its interim financial statements and related management discussion & analysis for the three-month period ended March 31, 2009. The company said the delay has arisen due to the company's inability to complete the planned transactions with Natasa Mining Ltd as a result of receiving less than the requisite level of shareholder approval required to proceed with completing the Natasa Transaction at the company's Extraordinary General Meeting held on May 7, 2009. The company disclosed that prior to the EGM, virtually all closing conditions to the Natasa Transaction were satisfied (except for shareholder approval) and management efforts had been predominantly focused on moving towards the successful completion of the Natasa Transaction and the necessary transitions thereafter. Following the unexpected results of the vote at the EGM, the company said despite their best efforts and in light of the significant resources required to be devoted to negotiating the ZCI transaction, management has not been able to prepare the Financial Statements and MD&A in time to meet the May 15, 2009 filing deadline. The company anticipates filing the Financial Statements and MD&A by June 5, 2009. Headquartered in London, England, African Copper plc (LON:ACU) --- http://www.africancopper.com/--- together with its subsidiaries, is engaged in the exploration and development of copper and other base metal deposits in Botswana. The Company is focused on the development of its copper mine at the Mowana Mine, and holds permits in exploration properties at the Matsitama Project. The Mowana Mine is located in the northeastern portion of Botswana and the Matsitama Project is contiguous to the southern boundary of the Mowana Mine. ========= C H I N A ========= CHINA EASTERN: Opens First Office in Taiwan ------------------------------------------- China Eastern Airlines Corp. opened its first Taiwan office in the capital Taipei on May 17 in an effort to better serve passengers on the cross-strait route, The China Post reports citing China Eastern in a statement. According to the Post, Taiwan and China in December resumed direct shipping, air and postal links as warmer relations eased a six- decade ban, shaving time and transport costs for two economies with US$125 billion in annual trade between them. Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com-- principal activity is operation of domestic and international commercial air transportation. The Group is also involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. * * * China Eastern continues to carry Fitch Ratings' B+ foreign currency and local currency issuer default ratings, and Xinhua Far East China Ratings' BB+ issuer credit rating with a stable outlook. NEO-CHINA LAND: Moody's Maintains 'Caa3' Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service says that it will maintain Neo-China Land Group (Holdings) Limited's Caa3 corporate family and senior unsecured ratings. The ratings outlook remains negative. This follows the company's announcement that it had obtained the consent of its bond holders to revise the terms of its convertible bonds, including a reduction of the put price to 63% of face value -- from 120% originally -- on the forthcoming put date of June 12, 2009. The amendment is still subject to the approval of the Stock Exchange of Hong Kong. "Moody's views this transaction as a distressed exchange, given that a failure to obtain bond-holder consent would have likely resulted in a default if investors put the convertible bonds back to Neo-China at the original price," says Kaven Tsang, a Moody's AVP/Analyst. "Although the successful restructuring could -- as Moody's believes -- mitigate the risk of imminent default, the Caa3 rating continues to reflect Neo-China's exposure to a high risk of default, as it has to meet the next coupon payment on its US$400 million bond due in July 2009 and it has short-term loan payables totaling around HK$2 billion," says Tsang. The negative outlook continues to reflect a high level of uncertainty surrounding Neo-China's ability to meet these obligations due to its very tight liquidity position. It also reflects uncertainties associated with the potential impact of the prolonged share trading suspension and ICAC investigation. Moody's last rating action occurred on February 20, 2009, when Neo-China's ratings were upgraded from Ca to Caa3 with a negative outlook after it made up the missed coupon payment within the grace period. Neo-China Land Group (Holdings) Limited is a Chinese property developer engaged in residential and mixed-use developments. It has 16 major projects under development in 12 cities in China and a land bank of around 14.8 million sqm in gross floor area. ================ H O N G K O N G ================ AFA SYSTEMS ET AL: Chen and Wong Step Down as Liquidators --------------------------------------------------------- On May 5, 2009, Chen Yung Ngai Kenneth and Wong Tak Man Stephen stepped down as liquidators of: -- Afa Systems (Asia) Limited; -- Best United Limited; -- Fag China Company Limited; -- Oriental Merchant Limited; -- South China Binding Limited; -- South China Printing Company (1988) Limited; -- Valiant Printing (Far East) Limited; and -- Fluidmaster/Bemis Asia Pacific Limited. EXTRAWORLD INTERNATIONAL: Placed Under Voluntary Wind-Up -------------------------------------------------------- At an extraordinary general meeting held on May 7, 2009, the members of Extraworld International Limited passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Chiu Fan Wa CKK Commercial Centre Unit A, 5th Floor 289 Hennessy Road Wanchai, Hong Kong FASTER CHINA: Creditors' Proofs of Debt Due on June 5 ----------------------------------------------------- The creditors of Faster China Development Limited are required to file their proofs of debt by June 5, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 8, 2009. The company's liquidators are: Ying Hing Chiu Chan Mi Har Three Pacific Place, Level 28 1 Queen's Road East Hong Kong INFORMATION TECHNOLOGY: Creditors' Proofs of Debt Due on May 29 --------------------------------------------------------------- The creditors of Information Technology Entrepreneurs Association Limited are required to file their proofs of debt by May 29, 2009, to be included in the company's dividend distribution. The company's liquidator is: Lo Yau Tak Langham Place Office Tower, Unit 2103, 21st Floor 8 Argyle Street Mongkok, Kowloon Hong Kong JING GANG: Members' Final Meeting Set for June 15 ------------------------------------------------- The members of Jing Gang Entertainment Company Limited will hold their final meeting on June 15, 2009, at 10:00 a.m., at Room 1903, 19th Floor of World-Wide House, 19 Des Voeux Road, in Central, Hong Kong. At the meeting, Yeung Tak Chun, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KO CHUN HING: Creditors' Meeting Set for May 26 ----------------------------------------------- The creditors of Ko Chun Hing Dyeing & Finishing Factory Limited will hold their meeting on May 26, 2009, at 2:30 p.m., for the purposes set out in Sections 241, 242, 243, 244, 251(1)(a), 255A(2) and 283 of the Companies Ordinance. The meeting will be held at the 29th Floor of Caroline Centre, Lee Gardens Two, in 28 Yun Ping Road, Hong Kong. TEEYANO TRADING ET AL: Placed Under Creditors' Voluntary Wind-Up ---------------------------------------------------------------- At the extraordinary general meeting held on May 8, 2009, a resolution was passed to voluntarily wind up the operations of: -- Teeyano Trading Limited; and -- Polerun Limited. The companies' liquidator is: Yau Kim Hung Wah Ying Cheong Central Building, Room 703 158-164 Queen's Road Central Hong Kong TOP SUN: Inability to Pay Debts Prompts Wind-Up ----------------------------------------------- At an extraordinary general meeting held on May 5, 2009, a resolution was passed to voluntarily wind up the operations of Top Sun Manufacturing Company Limited due to its inability to pay debts when it fall due. The company's liquidators are: Huen Ho Yin Mok Hon Kwong Thomas Li Po Chun Chambers, 8th Floor 189 Des Voeux Road Central Hong Kong Y.M. LAU: Placed Under Voluntary Wind-Up ---------------------------------------- At an extraordinary general meeting held on May 4, 2009, the members of Y.M. Lau Charity Fund Limited passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Tang Ting Ying Hang Seng North Point Building, Rooms 2305-8, 23rd Floor 341 King's Road Hong Kong * HONG KONG: April Bankruptcy Petitions Up 56% YOY to 1,490 ----------------------------------------------------------- Bankruptcy petitions in Hong Kong jumped 56 percent in April from a year earlier, Reuters reports citing government data. Reuters relates that the bankruptcy petitions filed in April this year reached 1,490 while bankruptcies in April a year ago amounted to 957. But it fell from a six-year high March bankruptcies that totalled 1,872. According to Reuters, the latest data marked only the second time since August that bankruptcy petitions had fallen from the previous month. ========= I N D I A ========= ABCI INFRASTRUCTURES: CRISIL Rates INR40 Mln Term Loan at 'BB-' --------------------------------------------------------------- CRISIL has assigned its rating of 'BB-/Negative/P4' to the various bank facilities of ABCI Infrastructures Pvt Ltd (ABCI). INR150 Million Cash Credit Limits BB-/Negative (Assigned) INR40 Million Term Loan BB-/Negative (Assigned) INR500 Million Bank Guarantee P4 (Assigned) The ratings reflect ABCI's working capital-intensive operations, and exposure to risks relating to geographical concentration and customer concentration in revenues. These weaknesses are, however, partially offset by ABCI's above-average financial profile, marked by low gearing and healthy debt protection measures, and healthy order book, leading to strong revenue visibility. Outlook: Negative CRISIL expects ABCI's financial risk profile to deteriorate on account of constrained liquidity, marked by high utilisation of fund-based limits. The ratings may be downgraded if the company reports low operating margins, or undertakes large, debt-funded capital expenditure. Conversely, the outlook may be revised to 'Stable' if ABCI's revenues and profitability improve substantially, or if equity infusions improve its financial risk profile, or enhanced fund-based limits improve its liquidity. About ABCI Infrastructures Set up in 1993 ABCI (formerly, Maxxom Vyapaar Pvt Ltd) undertakes infrastructure-related construction activities for government entities. In 2002, ABCI took over the existing business of another promoter firm, Anupam Bricks and Concrete Industries. ABCI, managed by Mr. Budhmal Baid and Mr. Jodhraj Baid, constructs roads, bridges, tunnels and buildings, and undertakes border fencing. ABCI reported a profit after tax (PAT) of INR27 million on sales of INR955 million for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of INR34 million on sales of INR767 million for 2006-07. ADVIN TRADEFIN: CRISIL Assigns 'B' Rating on INR95.0 Mln Term Loan ------------------------------------------------------------------ CRISIL has assigned its ratings of 'B/Stable/P4' to the various bank facilities of Advin Tradefin Pvt Ltd (Advin). INR95.0 Million Term Loan B/Stable (Assigned) INR15.0 Million Cash Credit B/Stable (Assigned) INR5.0 Million Letter of Credit P4 (Assigned) The ratings reflect Advin's exposure to risks relating to successful commissioning and commercialisation of its monofilament dyed polyester (mono-dyed) yarn facility and current slowdown in the textile industry. These weaknesses are, however, partially offset by Advin's limited exposure to funding risks on its project. Outlook: Stable CRISIL believes that Advin's credit risk profile will remain moderate until commencement and stabilisation of operations of its proposed mono-dyed yarn plant. The outlook may be revised to 'Negative' if the company faces further delay in commissioning of the plant, and/or generates lower-than-expected revenues and profitability after the plant gets commissioned. Conversely, the outlook may be revised to 'Positive' if the company is able to commence and stabilize operations as scheduled, and demonstrate sustained profitability and healthy cash accruals. About Advin Tradefin Incorporated in 1995, Advin is implementing a project for manufacturing 20-denier mono-dyed yarn. The company is promoted by Mr Ashok Biyani and Mr Arvind Biyani. The proposed plant will be located at Silvassa, and have an overall capacity to manufacture 2400 tonnes of yarn per annum. The total cost of the project is estimated to be INR180.0 million. It is in the final stage of commissioning and is expected to commence trials by May 2009 and commercial production by June 2009. AKSHATA MERCANTILE: CRISIL Puts 'BB' Rating on INR57.5MM LT Loan ---------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Negative/P4' to the various bank facilities of Akshata Mercantile Pvt Ltd, part of the Topworth Group. INR57.5 Million Long Term Loan BB/Negative (Assigned) INR450.0 Million Cash Credit BB/Negative (Assigned) INR800.0 Million Letter of Credit P4 (Assigned) The ratings reflect the company's exposure to risks arising from volatility in steel prices coupled with limited financial flexibility which results in high dependence on bank lines to support its increasing working capital requirements. These weaknesses are, however, partially offset by the benefits that Akshata group derives from its established relationships with suppliers and customers. For arriving at the ratings, CRISIL has combined the business and financial risk profile of Akshata Mercantile Pvt Ltd, Champalal Motilal Steel Co Pvt Ltd, Netra Mercantile Pvt Ltd, Pheonix Impex Pvt Ltd and Poscho Steels Pvt Ltd (collectively referred to as the Akshata group); this is in view of the common line of trading business, cash flow fungibility and common management control in respect of these companies. CRISIL has not consolidated the financials of the three manufacturing companies, which are also part of Topworth Group, engaged in the production of sponge iron and billets. This approach is on account of the significantly different business risk profiles and management's stated intention to keep the operations of manufacturing and trading companies separate. Outlook: Negative CRISIL believes that the volatility in steel prices may put pressure on the business risk profile of steel trading companies like Akshata group; consequently the business volumes, revenues and accruals of the group may be constrained over the near to medium term. The rating may be downgraded if there is a substantial fall in the revenues and profitability of the group or if the group undertakes any large, debt-funded capital expenditure. The outlook may be revised to 'Stable' if the group is able to generate higher than expected cash accruals on a sustainable basis over the medium term. About the Group The Topworth group of companies was promoted by Mr. Abhay Lodha, a first generation entrepreneur. The group started its trading activities in 1999 dealing primarily in hot-rolled and cold-rolled coils and sheets. The other manufacturing companies of the group produce sponge iron and billets at their plants in Durg and Nagpur. For 2007-08 (refers to financial year, April 1 to March 31), the Akshata group reported a profit after tax (PAT) of INR168 million on net sales of INR19.74 billion, as against a PAT of INR90 million on net sales of INR10.23 billion for 2006-07. CHAMPALAL MOTILAL: CRISIL Rates INR100.0 Mln Cash Credit at 'BB' ---------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Negative/P4' to the various bank facilities of Champalal Motilal Steel Co. Pvt Ltd, part of the Topworth Group. INR100.0 Million Cash Credit BB/Negative (Assigned) INR400.0 Million Letter of Credit P4 (Assigned) The ratings reflect the company's exposure to risks arising from volatility in steel prices coupled with limited financial flexibility which results in high dependence on bank lines to support its increasing working capital requirements. These weaknesses are, however, partially offset by the benefits that Akshata group derives from its established relationships with suppliers and customers. For arriving at the ratings, CRISIL has combined the business and financial risk profile of Akshata Mercantile Pvt Ltd, Champalal Motilal Steel Co Pvt Ltd, Netra Mercantile Pvt Ltd, Pheonix Impex Pvt Ltd and Poscho Steels Pvt Ltd (collectively referred to as the Akshata group); this is in view of the common line of trading business, cash flow fungibility and common management control in respect of these companies. CRISIL has not consolidated the financials of the three manufacturing companies, which are also part of Topworth Group, engaged in the production of sponge iron and billets. This approach is on account of the significantly different business risk profiles and management's stated intention to keep the operations of manufacturing and trading companies separate. Outlook: Negative CRISIL believes that the volatility in steel prices may put pressure on the business risk profile of steel trading companies like Akshata group; consequently the business volumes, revenues and accruals of the group may be constrained over the near to medium term. The rating may be downgraded if there is a substantial fall in the revenues and profitability of the group or if the group undertakes any large, debt-funded capital expenditure. The outlook may be revised to 'Stable' if the group is able to generate higher than expected cash accruals on a sustainable basis over the medium term. About the Group The Topworth group of companies was promoted by Mr. Abhay Lodha, a first generation entrepreneur. The group started its trading activities in 1999 dealing primarily in hot-rolled and cold-rolled coils and sheets. The other manufacturing companies of the group produce sponge iron and billets at their plants in Durg and Nagpur. For 2007-08 (refers to financial year, April 1 to March 31), the Akshata group reported a profit after tax (PAT) of INR168 million on net sales of INR19.74 billion, as against a PAT of INR90 million on net sales of INR10.23 billion for 2006-07 MAYTAS INFRA: Bankers to Discuss Debt Restructuring Package ----------------------------------------------------------- Bankers will likely hold a meeting with Maytas Infra Ltd, a firm promoted by the kin of Satyam Computer B. Ramalinga Raju, to discuss the company's corporate debt restructuring package after it was approved by its board, The Economic Times reports. "The bankers may call for a meeting to further discuss the CDR package, which is likely to be scheduled during next week," the report cited Maytas in filing to the Bombay Stock Exchange. The report says the board also reviewed the build-operate-transfer projects, the Hyderabad Metro Rail project and the future course of action for the company. According to the report, the statement said the board took stock of the human capital situation of the company and the requirement in the current scenario. Meanwhile, the Express Buzz, citing sources, reports that Maytas newly recruited board members are evaluating the possibilities of downsizing its staff. "Due to the financial crisis, employees are not being paid salaries since February," the Express Buzz cited a company official as saying. While it is unclear as to the percentage of employees who'll be shown the door, employees, however, apprehend that more than 700 people may be given pink slips, the Express Buzz states. The Express Buzz relates that Maytas currently employs about 1,500 employees across four states working on irrigation and other construction-related activities. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 20, 2009, the Financial Express said the government called on the Company Law Board ("CLB") to supercede the present boards of Maytas Infra Ltd and Maytas Properties Ltd. "In order to prevent further acts of fraud against the said companies (two Maytas companies) and to safeguard operations of these companies in public interest, the government has moved the CLB to remove the existing directors of these companies," the Financial Express quoted Corporate Affairs Minister Prem Chand Gupta as saying. The Hindu Busines Line related that the application to the CLB was based on the information given by the Serious Fraud Investigation Office (SFIO), which showed that the present management of the two companies had worked with fraudulent intent, breached stakeholders' trust, persistently neglected its obligations and functions 'to the serious detriment of the business and operations of these two companies and stakeholders'. According to the Hindu Business Line, the board of Maytas Infra comprises Dr. R. P. Raju (Independent director), Mr. B. Teja Raju (Vice- Chairman and son of Mr B. Ramalinga Raju), and Mr. B. Narasimha Rao (who was inducted on January 30, 2009). Receivership Application As reported in the TCR-AP on Feb. 18, 2009, India Infoline, citing a report, said the Bombay High Court has rejected an application made by IDBI Bank and ICICI Bank seeking appointment of a court receiver to oversee the administration of Maytas Infra Limited. According to Infoline, Maytas is carrying out 62 infrastructure projects and has Rs40.45 billion debt outstanding, in term loans and working capital facilities from various banks. Infoline said Maytas's financial health and its ability to complete the ongoing projects is crucial for the banks. On February 9, Infoline said a High Court judge had refused to grant ad-interim relief sought by the two banks. About Maytas Infra Maytas Infra Limited -- http://www.maytasinfra.com/-- is an India-based construction and infrastructure developer. The Company is primarily engaged in the business of construction of roads, irrigation projects, buildings, industrial structures, oil and gas infrastructure, railway infrastructure, power transmission and distribution lines, including rural electrification, power plants, and development of airports and seaports. The Company's construction business is classified into four sub-segments: transportation, which includes roads and railways; water projects; buildings and structures, and energy. Its infrastructure business is also classified into four sub-segments: power, ports, roads and airports. NETRA MERCANTILE: CRISIL Assigns 'P4' Rating on Letter of Credit ---------------------------------------------------------------- CRISIL has assigned its rating of 'P4' to the letter of credit facility of Netra Mercantile Pvt Ltd, part of the Topworth Group. INR200.0 Million Letter of Credit P4 (Assigned) The rating reflects the company's exposure to risks arising from volatility in steel prices coupled with limited financial flexibility which results in high dependence on bank lines to support its increasing working capital requirements. These weaknesses are, however, partially offset by the benefits that Akshata group derives from its established relationships with suppliers and customers. For arriving at the ratings, CRISIL has combined the business and financial risk profile of Akshata Mercantile Pvt Ltd, Champalal Motilal Steel Co Pvt Ltd, Netra Mercantile Pvt Ltd, Pheonix Impex Pvt Ltd and Poscho Steels Pvt Ltd (collectively referred to as the Akshata group); this is in view of the common line of trading business, cash flow fungibility and common management control in respect of these companies. CRISIL has not consolidated the financials of the three manufacturing companies, which are also part of Topworth Group, engaged in the production of sponge iron and billets. This approach is on account of the significantly different business risk profiles and management's stated intention to keep the operations of manufacturing and trading companies separate. About the Group The Topworth group of companies was promoted by Mr. Abhay Lodha, a first generation entrepreneur. The group started its trading activities in 1999 dealing primarily in hot-rolled and cold-rolled coils and sheets. The other manufacturing companies of the group produce sponge iron and billets at their plants in Durg and Nagpur. For 2007-08 (refers to financial year, April 1 to March 31), the Akshata group reported a profit after tax (PAT) of INR168 million on net sales of INR19.74 billion, as against a PAT of INR90 million on net sales of INR10.23 billion for 2006-07. PHEONIX IMPEX: CRISIL Places 'BB' Rating on INR200 Mln Cash Credit ------------------------------------------------------------------ CRISIL has assigned its ratings of 'BB/Negative/P4' to the various bank facilities of Pheonix Impex Pvt Ltd, part of the Topworth Group. INR200.0 Million Cash Credit BB/Negative (Assigned) INR250.0 Million Letter of Credit P4 (Assigned) The ratings reflect the company's exposure to risks arising from volatility in steel prices coupled with limited financial flexibility which results in high dependence on bank lines to support its increasing working capital requirements. These weaknesses are, however, partially offset by the benefits that Akshata group derives from its established relationships with suppliers and customers. For arriving at the ratings, CRISIL has combined the business and financial risk profile of Akshata Mercantile Pvt Ltd, Champalal Motilal Steel Co Pvt Ltd, Netra Mercantile Pvt Ltd, Pheonix Impex Pvt Ltd and Poscho Steels Pvt Ltd (collectively referred to as the Akshata group); this is in view of the common line of trading business, cash flow fungibility and common management control in respect of these companies. CRISIL has not consolidated the financials of the three manufacturing companies, which are also part of Topworth Group, engaged in the production of sponge iron and billets. This approach is on account of the significantly different business risk profiles and management's stated intention to keep the operations of manufacturing and trading companies separate. Outlook: Negative CRISIL believes that the volatility in steel prices may put pressure on the business risk profile of steel trading companies like Akshata group; consequently the business volumes, revenues and accruals of the group may be constrained over the near to medium term. The rating may be downgraded if there is a substantial fall in the revenues and profitability of the group or if the group undertakes any large, debt-funded capital expenditure. The outlook may be revised to 'Stable' if the group is able to generate higher than expected cash accruals on a sustainable basis over the medium term. About the Group The Topworth group of companies was promoted by Mr. Abhay Lodha, a first generation entrepreneur. The group started its trading activities in 1999 dealing primarily in hot-rolled and cold-rolled coils and sheets. The other manufacturing companies of the group produce sponge iron and billets at their plants in Durg and Nagpur. For 2007-08 (refers to financial year, April 1 to March 31), the Akshata group reported a profit after tax (PAT) of INR168 million on net sales of INR19.74 billion, as against a PAT of INR90 million on net sales of INR10.23 billion for 2006-07. POSCHO STEELS: CRISIL Rates INR100.0 Million Cash Credit at 'BB' ---------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Negative/P4' to the various bank facilities of Poscho Steels Pvt Ltd, part of the Topworth Group. INR100.0 Million Cash Credit BB/Negative (Assigned) INR300.0 Million Letter of Credit P4 (Assigned) The ratings reflect the company's exposure to risks arising from volatility in steel prices coupled with limited financial flexibility which results in high dependence on bank lines to support its increasing working capital requirements. These weaknesses are, however, partially offset by the benefits that Akshata group derives from its established relationships with suppliers and customers. For arriving at the ratings, CRISIL has combined the business and financial risk profile of Akshata Mercantile Pvt Ltd, Champalal Motilal Steel Co Pvt Ltd, Netra Mercantile Pvt Ltd, Pheonix Impex Pvt Ltd and Poscho Steels Pvt Ltd (collectively referred to as the Akshata group); this is in view of the common line of trading business, cash flow fungibility and common management control in respect of these companies. CRISIL has not consolidated the financials of the three manufacturing companies, which are also part of Topworth Group, engaged in the production of sponge iron and billets. This approach is on account of the significantly different business risk profiles and management's stated intention to keep the operations of manufacturing and trading companies separate. Outlook: Negative CRISIL believes that the volatility in steel prices may put pressure on the business risk profile of steel trading companies like Akshata group; consequently the business volumes, revenues and accruals of the group may be constrained over the near to medium term. The rating may be downgraded if there is a substantial fall in the revenues and profitability of the group or if the group undertakes any large, debt-funded capital expenditure. The outlook may be revised to 'Stable' if the group is able to generate higher than expected cash accruals on a sustainable basis over the medium term. About the Group The Topworth group of companies was promoted by Mr. Abhay Lodha, a first generation entrepreneur. The group started its trading activities in 1999 dealing primarily in hot-rolled and cold-rolled coils and sheets. The other manufacturing companies of the group produce sponge iron and billets at their plants in Durg and Nagpur. For 2007-08 (refers to financial year, April 1 to March 31), the Akshata group reported a profit after tax (PAT) of INR168 million on net sales of INR19.74 billion, as against a PAT of INR90 million on net sales of INR10.23 billion for 2006-07 RUBICON RESEARCH: CRISIL Rates INR116.9MM Rupee Term Loan at 'BB' ----------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to the various bank facilities of Rubicon Research Pvt Ltd (Rubicon). INR116.9 Million Rupee Term Loan BB/Stable (Assigned) INR12.0 Million Cash Credit BB/Stable (Assigned) INR2.3 Million Bank Guarantee P4 (Assigned) The ratings reflect Rubicon's moderate financial risk profile, modest scale of operations in contract research services, and exposure to risks relating to commercialisation of its manufacturing facility being set up at Ambernath (Maharashtra). These weaknesses are, however, partially offset by the benefits that Rubicon derives from the experience of its promoters in the pharmaceutical industry. Outlook: Stable CRISIL expects Rubicon's business risk profile to remain stable over the near term on the back of established relations with reputed pharmaceutical players, resulting in steady inflow of orders. The outlook may be revised to 'Positive' if Rubicon reports sustainable and substantial improvement in revenues; or to 'Negative' if accruals from the Ambernath plant are insufficient to meet debt obligations, thereby straining the company's financial risk profile. About Rubicon Research Rubicon was set up as an independent contract research organisation by promoters, Ms. Pratibha Pilgaonkar, Ms. Maharukh Rustomjee, and Mr. Sudhir Pilgaonkar. The company offers research services in drug delivery systems, and operates out of its office at Bhandup, Mumbai and caters to innovator and generic pharma companies. Rubicon reported a profit after tax (PAT) of INR16.6 million on net sales of INR111.8 million for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of INR18.8 million on net sales of INR82.8 million for 2006-07. SHRI DAMODAR: CRISIL Puts 'B+' Ratings on Various Bank Facilities ----------------------------------------------------------------- CRISIL has assigned its ratings of 'B+/Negative/P4' to the various bank facilities of Shri Damodar Yarn Manufacturing Pvt Ltd (Shri Damodar Yarn). INR135.0 Million Term Loan B+/Negative (Assigned) INR59.0 Million Cash Credit B+/Negative (Assigned) INR73.5 Million Proposed Long B+/Negative (Assigned) Term Bank Facility INR10.0 Million Packing Credit P4 (Assigned) INR7.5 Million Bills Discounting P4 (Assigned) INR10.0 Million Letter of Credit P4 (Assigned) INR5.0 Million Bank Guarantee P4 (Assigned) The ratings reflect Shri Damodar Yarn's small scale of operations in the synthetic yarns business, and moderate financial risk profile marked by high gearing and weak debt protection measures. These weaknesses are, however, partially offset by the benefits that the company derives from its stable business risk profile, driven by strong customer base and established presence in yarn manufacturing. Outlook: Negative CRISIL believes that Shri Damodar Yarn's financial risk profile will remain moderate on account of large debt-funded capital expenditure. The rating may be revised downwards if the company's debt servicing ability deteriorates owing to low accruals, as a result of the ongoing slowdown in demand. Conversely, the outlook may be revised to 'Stable' if Shri Damodar Yarn achieves strong growth in revenues post commissioning of its new plant, while sustaining its current profitability. About Shri Damodar Incorporated in 1984, Shri Damodar Yarn primarily processes synthetic yarn. The company, promoted by Mr. Arvind Biyani, has manufacturing units at Sarigam and Vapi (Gujarat), and Tarapur (Maharashtra). During 2006-07 (refers to financial year, April 1 to March 31), three group companies (Arnar Synthetics Pvt. Ltd., Shri Damodar Silk Mills Pvt. Ltd., Aman Synthetics Pvt. Ltd.) engaged in the similar line of business were amalgamated with Shri Damodar Yarn. Shri Damodar Yarn reported a profit after tax (PAT) of INR16.97 million on net sales of INR256.40 million for 2007-08, as against a PAT of INR2.98 million on net sales of INR270.98 million for 2006-07. SOLUBLE SILICATES: Low Net Worth Cues CRISIL 'B+' Ratings --------------------------------------------------------- CRISIL has assigned its ratings of 'B+/Negative/P4' to the bank facilities of Soluble Silicates Pvt Ltd (SSPL). INR55 Million Cash Credit B+/Negative (Assigned) INR10 Million Term Loan B+/Negative (Assigned) INR10 Proposed Long Term Facility B+/Negative (Assigned) INR2.5 Million Bank Guarantee P4 (Assigned) INR22.5 Million Letter of Credit P4 (Assigned) The ratings reflect SSPL's small scale of operations, and its weak financial risk profile marked by a high gearing and low net worth. These weaknesses are mitigated by SSPL's strong and established clientele. Outlook: Negative CRISIL expects SSPL's financial risk profile to remain weak over the medium term, given the company's low net worth and weak debt protection measures. The rating may be downgraded in case of a steep decline in the company's profitability. Conversely, the outlook may be revised to 'Stable' in case of a sustained improvement in the profitability or a significant increase in the net worth, through fresh equity infusion. About Soluble Silicates Established in 1998 by Mr. Naresh Poddar, SSPL is engaged in the business of manufacture and sale of sodium silicates. It also trades in soda ash. The company's manufacturing facilities are located in West Bengal and Orissa. SSPL reported a profit after tax (PAT) of INR1.6 million on net sales of INR166 million in 2007-08 (refers to financial year, April 1 to March 31), against INR1.1 million and INR136 million, respectively, in 2006-07. ========= J A P A N ========= AOZORA BANK: Incurs US$2.5 Bln Annual Loss on U.S. Investments -------------------------------------------------------------- Finbarr Flynn at Bloomberg News reports that Aozora Bank Ltd posted its first loss in a decade, after investments in U.S. lender GMAC LLC and Bernard Madoff soured. Aozora booked a JPY242.6 billion (US$2.5 billion) deficit in the year ended March 31, compared with a profit of JPY5.93 billion a year earlier, the bank said in a statement obtained by Bloomberg News. The report relates the bank said it lost JPY35.8 billion on U.S. auto financing company GMAC and JPY11.7 billion on investments tied to Madoff in February. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 16, 2009, Moody's Investors Service downgraded Aozora's base line credit assessment to Ba1 from Baa3. Moody's said the downgrade reflects increased concerns that Aozora will face significant challenges before it can restore the confidence of the market and its profitability in view of the difficult nature of the operating environment for banking institutions funded by wholesale funds. As reported in the Troubled Company Reporter-Asia Pacific on April 2, 2008, Fitch Ratings affirmed Aozora's Support Rating Floor rating at 'BB+'. The Outlook remains Stable. About Aozora Bank Aozora Bank Ltd. (TYO:8304) -- http://www.aozorabank.co.jp/-- is a Japan-based regional bank that provides a range of banking services. The Bank operates in two business divisions. The Banking division is engaged in the provision of banking services, including deposit, loan, domestic and foreign currency exchange, as well as debt services for individual and corporate customers. The Others segment is engaged in the securities business, such as securities trading and securities investment services, as well as the trust business, debt management and collection, venture capital investment, and system development. The Bank has 16 subsidiaries and 18 branch offices. L-JAC 5: Moody's Continues Rating Review on Various Trusts ---------------------------------------------------------- Moody's Investors Service has announced the continuation of a review for possible downgrade of the ratings of L-JAC 5 Trust and L-JAC 7 Trust. Moody's had originally placed the ratings under review for possible downgrade on September 17, 2008, as a result of the Lehman Brothers Holdings Inc. bankruptcy on September 15, 2008 and a subsequent rating downgrade. As hedge counterparties, the reviewed classes were exposed to either Lehman or its subsidiaries. On April 14, 2009, Moody's also placed under review for possible downgrade the ratings of a number of Japanese CMBS transactions, prompted by the view that the turmoil affecting the Japanese CMBS market might continue for a sustained period of time. Moody's had announced its intention to conclude this review, as well as others on ratings that it had already placed under review for possible downgrade, including the ratings of the affected classes of the L-JAC 5 and L-JAC 7 Trusts. The relevant parties to the two transactions have selected a substitute for the hedge counterparty, and new hedge contracts have been finalized. However, although Moody's believes that the potential interest rate risks of the transactions have been hedged by the contracts, the review of the two transaction ratings, as well as of the Japanese CMBS ratings, will continue. - L-JAC 5 Trust -- Class A, Aaa still under review for possible downgrade; previously, Aaa had been placed under review for possible downgrade on September 17, 2008 -- Class B, Aa2 still under review for possible downgrade; previously, Aa2 had been placed under review for possible downgrade on September 17, 2008 -- Class C, A2 still under review for possible downgrade; previously, A2 had been placed under review for possible downgrade on September 17, 2008 -- Class D-1, Baa2 still under review for possible downgrade; previously, Baa2 had been placed under review for possible downgrade on September 17, 2008 -- Class E-1, Baa3 still under review for possible downgrade; previously, Baa3 had been placed under review for possible downgrade on September 17, 2008 -- Class F-1, Ba1 still under review for possible downgrade; previously, Ba1 had been placed under review for possible downgrade on September 17, 2008 -- Class G-1, Ba2 still under review for possible downgrade; previously, Ba2 had been placed under review for possible downgrade on September 17, 2008 -- Class H-1, Ba3 still under review for possible downgrade; previously, Ba3 had been placed under review for possible downgrade on September 17, 2008 -- Class I-1, B1 still under review for possible downgrade; previously, B1 had been placed under review for possible downgrade on September 17, 2008 -- Class J-1, B2 still under review for possible downgrade; previously, B2 had been placed under review for possible downgrade on September 17, 2008 -- Class X-1, Aaa still under review for possible downgrade; previously, Aaa had been placed under review for possible downgrade on September 17, 2008 -- Class X-2, Aaa still under review for possible downgrade; previously, Aaa had been placed under review for possible downgrade on September 17, 2008 - L-JAC 7 Trust -- Class A, Aaa still under review for possible downgrade; previously, Aaa had been placed under review for possible downgrade on September 17, 2008 -- Class B, Aa2 still under review for possible downgrade; previously, Aa2 had been placed under review for possible downgrade on September 17, 2008 -- Class C, A2 still under review for possible downgrade; previously, A2 had been placed under review for possible downgrade on September 17, 2008 -- Class D-1, Baa2 still under review for possible downgrade; previously, Baa2 had been placed under review for possible downgrade on September 17, 2008 -- Class E-1, Baa3 still under review for possible downgrade; previously, Baa3 had been placed under review for possible downgrade on September 17, 2008 -- Class F-1, Ba1 still under review for possible downgrade; previously, Ba1 had been placed under review for possible downgrade on September 17, 2008 -- Class G-1, Ba2 still under review for possible downgrade; previously, Ba2 had been placed under review for possible downgrade on September 17, 2008 -- Class H-1, Ba3 still under review for possible downgrade; previously, Ba3 had been placed under review for possible downgrade on September 17, 2008 -- Class I-1, B1 still under review for possible downgrade; previously, B1 had been placed under review for possible downgrade on September 17, 2008 -- Class J-1, B2 still under review for possible downgrade; previously, B2 had been placed under review for possible downgrade on September 17, 2008 -- Class K-1, B3 still under review for possible downgrade; previously, B3 had been placed under review for possible downgrade on September 17, 2008 -- Class X, Aaa still under review for possible downgrade; previously, Aaa had been placed under review for possible downgrade on September 17, 2008 -- CMBL, Aaa still under review for possible downgrade; previously, Aaa had been placed under review for possible downgrade on September 17, 2008 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. ORSO ABS: S&P Affirms Ratings on Various Trust1-SFFC Interests -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on ORSO ABS Funding Trust1-SFFC's class A to class D beneficiary interests, issued in September 2007, and removed the ratings from CreditWatch with negative implications. At the same time, Standard & Poor's affirmed its ratings on the class E-Deferral beneficiary interests and the class X–IO beneficiary interests. On Feb. 24, 2009, Standard & Poor's lowered its ratings on the class A to class E-Deferral beneficiary interests, reflecting deterioration in the credit quality of the debtors of collateral real estate loan receivables, as well as a potential decline in the recovery amount from collateral real estate, due to recent difficult conditions in the Japanese real estate market. At the same time, Standard & Poor's kept its ratings on the class A to class D beneficiary interests on CreditWatch with negative implications, reflecting needs to consider the execution of the sale plan for collateral real estate and to consider the impact on the transaction from the commencement of legal insolvency proceedings on SFCG Co. Ltd., the relevant party of this transaction. (In February 2009, SFCG filed for commencement of civil rehabilitation proceedings, which were eventually ordered by the court to commence as bankruptcy proceedings.) Standard & Poor's affirmed the ratings on the class A to class D beneficiary interests and removed them from CreditWatch with negative implications due to these: 1) The completion of the sale plan for collateral real estate marks a step forward for the back- up servicer to collect recoveries expeditiously by selling collateral real estate under certain conditions allowed in the sale plan, and 2) The collection from collateral real estate loans will be solely led by the back-up servicer, limiting any negative impact on the transaction from the commencement of the bankruptcy proceedings on SFCG. In this transaction, liquidity risk is limited since predetermined cash reserves allow dividend payments on beneficiary interests during a certain period even if there is a stall in recovery from the sale of collateral real estate. However, Standard & Poor's believes that it is necessary to consider the timing of recovery from the collateral real estate sale because: 1) There is a possibility that the cash reserve could be exhausted if the sale of collateral real estate is delayed, and 2) Negative carry risk may arise if a portion of principal collections is allocated to the payment of dividends and transaction costs prior to principal payment of beneficiary interests, thus decreasing the amount allocated to principal payment. While Standard & Poor's resolved the CreditWatch placements on the class A to class D beneficiary interests S&P is there is a possibility that S&P may consider negative rating actions if the back-up servicer fails to collect the targeted amount from collateral real estate loans as outlined in the sale plan. Currently, only class A beneficiary interests are being repaid and the outstanding balances as of are approximately JPY7.9 billion for the class A beneficiary interests and approximately JPY22.0 billion for the sum of the class A to E-Deferral beneficiary interests. The class A to E-Deferral and X-IO beneficiary interests are ultimately backed by: 1) Real estate-backed loan receivables originated by Real Estate Credit Co. Ltd. (the former SF Real Estate Credit Co. Ltd.), a newly established company that took over the real estate-backed loan business of SFCG Co. Ltd. through a company spin-off; and 2) Real estate-backed loans originated by SFCG prior to the company spin-off. Ratings Affirmed, Off Creditwatch Negative ORSO ABS Funding Trust 1-SFFC JPY30 billion beneficiary interests due September 2012 Class To From Initial Issue Amount Coupon Type ----- -- ---- -------------------- ----------- A A A/Watch Neg JPY15.9 bil. Floating B BBB BBB/Watch Neg JPY4.6 bil. Floating C BB BB/Watch Neg JPY3.1 bil. Floating D B- B-/Watch Neg JPY2.8 bil. Floating Ratings Affirmed Class Rating Initial Amount Coupon Type ----- ------ -------------- ----------- E-Deferral* CCC JPY3.6 bil. Floating X-IO** AAA JPY30 bil.*** Floating * Conditional deferred dividends ** Performance-linked dividends *** Notional principal of interest-only beneficiary interests Issue date Sept. 21, 2007. PANASONIC: Predicts JPY195 Billion Loss This Year ------------------------------------------------- Panasonic Corp said Friday it predicts to incur its second annual loss of JPY195 billion in the 12 months ending March 31, 2010, Bloomberg News reports. The company posted JPY379 billion net loss in the year ending March 31, 2009, the report says. The report relates Panasonic forecasts sales will fall 9.9% to JPY7 trillion this year and revenue will fall 10% to JPY3.37 trillion. Meanwhile, the report, citing the company's statement, says the company's profit at the main consumer-electronics division will probably increase to JPY16 billion this year from JPY3.2 billion while operating profit may rise 2.9% to JPY75 billion. On the other hand, Panasonic plans to cut the full-year dividend payment to JPY10 a share from JPY30 a year earlier, Bloomberg News adds. Panasonic also plans to close about 20 plants this fiscal year, about the same number as 2008, the report cited Makoto Uenoyama, director in charge of finance, as saying. Panasonic Corporation, formerly Matsushita Electric Industrial Co., Ltd., -- http://www.panasonic.co.jp/-- is engaged in the production and sales of electronic and electric products in an array of business areas. It offers products, systems and components for consumer, business and industrial use. Most of the company's products are marketed under the Panasonic brand name worldwide, along with other product, or region, specific brand names, including National primarily for home appliances and household electric equipment sold in Japan, and Technics for certain high-fidelity products. Some of its subsidiaries also use their own brand names, such as PanaHome. The company's segments comprise audiovisual connection networks, home appliances, components and devices, Matsushita Electric Works, Ltd. and PanaHome Corporation. In August 2007, Victor Company of Japan Ltd. and its consolidated subsidiaries became associated companies from consolidated subsidiaries. The company merged with two subsidiaries on October 1, 2008. TOSHIBA CORP: Sues Eight DVD Makers for Patent Infringement ----------------------------------------------------------- The China Post reports that Toshiba Corp. has filed a lawsuit in the United States against eight firms for alleged DVD patent infringement. According to the report, Toshiba filed a suit at a district court in Wisconsin, asking for compensations and an order to stop the firms from producing the DVDs that are sold under Imation and Memorex in the United States. The eight firms include Taiwan's CMC Magnetics and Ritek, U.S.'s Imation, and India's Moser Baer. Toshiba Corporation (TYO:6502) --- http://www.toshiba.co.jp/--- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large-scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 12, 2009, Moody's Investors Service assigned a rating of (P)Ba1 to The 1st Series Unsecured Interest Deferrable and Early Redeemable Subordinated Bonds Solely For Qualified Institutional Investors (Tekikaku Kikan Toshika Gentei) issued by Toshiba Corporation. The rating outlook is negative. =============== M A L A Y S I A =============== BSA INTERNATIONAL: Failure to File Plan Prompts Delisting Notice ---------------------------------------------------------------- BSA International Berhad said it has received a notice to show cause on de-listing of securities of the Company from Bursa Malaysia Securities Berhad ("Bursa Securities") for failing to submit its regularisation plan to the Securities Commission and other relevant authorities for approval within the extended timeframe granted by Bursa Securities. The Company also said that: (a) BSA has been accorded 5 market days by Bursa Securities to make written representations to Bursa Securities as to why its securities should not be removed from the Official List of Bursa Securities; (b) In the event Bursa Securities decides to de-list the Company, the securities of the Company shall be removed from the Official List of Bursa Securities upon the expiry of 7 market days from the date of notification of the decision to de-list the Company or upon such other date as may be specified by Bursa Securities unless an appeal is made within the prescribed timeframe; and (c) In the event Bursa Securities decides not to de-list the Company, other appropriate action/penalty(ies) may be imposed pursuant to paragraph 16.17 of the Listing Requirements. On May 8, 2009, Bursa Malaysia Securities Berhad rejected the company's application for a further extension of time for a period of 6 months up to November 8, 2009, to submit a regularization plan. About BSA International BSA International Berhad is a Malaysia-based investment holding company. The company operates in two business segments: manufacturing, which is engaged in manufacturing of alloy wheels and related accessories, and trading, which is engaged in trading of alloy wheels, tires and related accessories. Other business segments include investment holding, provision of services and promotion of motor sport events. The company's subsidiaries include BSA International (Labuan) Plc., CAM International Limited, BS Automotive (M) Sdn. Bhd., BSA Motorsports Sdn. Bhd., CAM Automotive Inc., PT CAM Automotive and BSA Racing Team Sdn. Bhd. * * * BSA Group said it defaulted in payments under Practice Note No. 1/2001 of the Listing Requirements of Bursa Malaysia Securities Berhad on June 2, 2008. Moreover, it triggered the requirement under Practice Note No. 17/2005 of the Listing Requirements of Bursa Malaysia on June 9, 2008. HO HUP: Below Mininum Equity Triggers Another PN17 Criterion ------------------------------------------------------------ Based on the company’s audited financial statements for the financial year ended December 31, 2008, Ho Hup Construction Company Bhd said it also triggered paragraph 2.1(a) of the Amended PN 17/2005, in addition to the paragraph 2.1(d) of the Amended PN 17/2005 as announced on July 31, 2008. The company said that as of financial year ended December 31, 2008, Ho Hup's consolidated shareholders equity stands at MYR18.769 million which is below 25% of the paid-up share capital of MYR102,000,408 and such shareholders’ equity is less than the minimum issued and paid up capital of MYR60 million as required under paragraph 8.16A(1) of the Listing Requirements. As such, in addition to the criterion on 2.1(d) of Amended PN 17/2005, the Company is also an affected issuer in accordance with criterion set out in 2.1(a) of Amended PN17/2005. Ho Hup Construction Company Bhd is engaged in foundation engineering, civil engineering, building contracting works and hire of plant and machinery. The company operates in three segments: construction, which is engaged in foundation and civil engineering, building contracting works and engineering, procurement, construction and commissioning of pipeline system; property development, which includes the development of residential and commercial properties, and manufacturing, which includes manufacturing and distribution of ready-mixed concrete and concrete spun piles. The company's subsidiaries include Ho Hup Construction Company (India) Private Limited, Ho Hup Construction Company Berhad (Madagascar Branch), Ho Hup Corporation (Mauritius) Ltd, Ho Hup Corporation (South Africa) Pty Ltd, Ho Hup Equipment Rental Sdn Bhd, Ho Hup Geotechnics Sdn Bhd, Ho Hup Jaya Sdn Bhd, Mekarani Heights Sdn Bhd, Intermax Resources Sdn Bhd and Timeless Element Sdn Bhd. * * * Messrs. Ernst & Young have expressed a disclaimer opinion in the company's 2007 audited financial statements. As a result, the company became an affected listed issuer pursuant to paragraph 2.1 of the PN17/2005. The auditors cited these factors that indicate the existence of material uncertainties, which may cast significant doubt on the ability of the group and the company to continue as a going concerns: * the group and the company reported a net loss of MYR46.16 mil. and MYR19.04 mil. respectively during the year ended December 31, 2007. As of that date, the group's current liabilities exceeded its current assets by MYR83.62 mil. In addition, the recognition of the liability may increase the group's net current liabilities by MYR43.9 million; * Should the outcome of the arbitration case between the company and the Government of Madagascar be unfavorable to the company, the liquidity of the group and the company would be adversely affected; and * the Secured Bank Guarantees amounting to MYR43.41 mil. have been called upon by the Govt. of Madagascar from the Guarantor Bank following the dismissal of the company's application for leave to the Federal Courts on July 8, 2008. On July 25, 2008, the Guarantor Bank has paid MYR43.41 mil. to the Govt. of Madagascar. No provision has been made for the amounts of bank guarantees demanded by the Govt. of Madagascar but the amounts have been disclosed as Contingent Liabilities. The non-recognition of the liability arising from the demand of bank guarantees by the Govt. of Madagascar is not in accordance with Financial Reporting Standards in Malaysia. The auditors were unable to perform sufficient appropriate audit procedures to ascertain whether the corresponding debit represents a recoverable amount or an expense in the income statement. NIKKO ELECTRONICS: EMMSB Seeks Payment of MYR61,900 Loan -------------------------------------------------------- On May 15, 2009, Nikko Nikko Electronics Berhad has been served with a sealed copy of an originating motion filed by Messrs Wong- Chooi & Mohd. Nor, Advocates and Solicitors acting for Exceptional Mould Manufacturing Sdn Bhd ("EMMSB") to obtain leave of Court to enable EMMSB to proceed with the action filed by them against Nikko for payment of outstanding sum of MYR61,900.00. The action, vide Butterworth Session's Court (1) Summons No. 52- 1314-2008, is now fixed for mention on August 12, 2009. The Originating Motion is fixed for hearing on August 7, 2009 at 9:00 a.m. at Penang High Court. Nikko Electronics Berhad manufactures sells radio controlled toys, electronic and toy related products. The Group operates in Malaysia, United States of America, France, Japan, United Kingdom, Netherlands, Italy, Norway, Hong Kong, Denmark, Austria, Spain, Australia and other countries. * * * On June 30, 2008, Nikko Electronics Bhd. was classified as an affected listed issuer under Practice Note 1/2001 (PN1/2001) of the Listing Requirements of Bursa Malaysia Securities Berhad because it had defaulted on a bankers' acceptance facility due on June 27, 2008, for an amount of MYR1,457,084 due to Malayan Banking Berhad. Nikko is unable to repay the liability to the bank due to the difficult cash flow position as a result of the contraction in the remote-control toys industry. The company had been loss-making and its ventures to manufacture new products had also failed to make a profitable contribution to it. Nikko will also be suspending its business activities to prevent incurring further losses. PANGLOBAL: Insurance Unit Changes Company Name ---------------------------------------------- PanGlobal Berhad disclosed that PanGlobal Insurance Berhad, a 99.97% owned-subsidiary of the Company, has changed its name to PanGlobal Marketing Berhad. Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad -- http://home.panglobal.com.my/-- is engaged in underwriting all classes of general insurance business, extracting of logs, sawmilling, manufacturing of veneer and extraction of coal. Other activities include property investment and development and leasing of real estate, investment holding, business management, building and fitness club management. PanGlobal is listed under Practice Note 4/2001. The Bursa Malaysia Securities has required the company to regularize its financial condition, curb huge losses and settle debts in order to continue operating. The company has already submitted a Proposed Restructuring Scheme to the Securities Commission on Sept. 9, 2005. On April 6, 2006, the Securities Commission approved PanGlobal Berhad's proposed restructuring scheme for implementation. ==================== N E W Z E A L A N D ==================== AIR NEW ZEALAND: To Freeze Pay on High Earning Staff for One Year ----------------------------------------------------------------- Air New Zealand will implement a pay freeze for staff who earned more than NZ$80,000 as it looks to cut costs amid slump in demand for air travel, The New Zealand Herald reports. According to the Herald, Air New Zealand chief executive Rob Fyfe said the freeze will affect to about 1,000 of its 11,000-strong workforce. The Herald says the pay freeze will apply to those on individual contracts for a year from July but does not affect collective employment contracts already in force or pay increases committed to within those agreements. Radio New Zealand relates the company has also set guidelines on pay increases for those on individual contracts of less than NZ$80,000. Air New Zealand will limit raises to an average of 2.5 percent on those earning up to NZ$50,000, 2 percent on those between NZ$50,000 and NZ$70,000 and 1 percent on those between NZ$70,000 and NZ$80,000, Radio New Zealand discloses. Radio New Zealand, citing Mr. Fyfe, says Air New Zealand is also looking to cut more flights on all its routes. Based in Auckland, New Zealand, Air New Zealand Ltd -- http://www.airnewzealand.com/--is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. Air New Zealand flies to the United States, United Kingdom, Canada, Europe and other Asian cities. * * * As of May 11, 2009, Air New Zealand Ltd continues to carry Moody's Investor's Service "Ba1" Senior Unsecured Issuer rating with stable outlook. PROPERTYFINANCE: Wins Back Trustee; Withdraws Court Injunction -------------------------------------------------------------- The National Business Review reports that Propertyfinance Securities has its trustee, Covenant Trustee Company Limited, onside again as it prepares a restructure of its moratorium. The report relates that this means Propertyfinance has withdrawn its High Court injunction seeking to stop Covenant appointing a receiver to the firm. Propertyfinance expects to put revised plans for a restructure to investors for a vote by June 30, the report says. As reported in the Troubled Company Reporter-Asia Pacific on April 24, 2009, Propertyfinance Securities applied for a High Court injunction to prevent its trustee, Covenant Trustee Company Limited, from being able to appoint receivers on the company. About Propertyfinance Group Based in Christchurch, New Zealand (NZE:PFG) -- http://www.propertyfinance.co.nz/-- Propertyfinance Group Limited is engaged in lending on first mortgage. The company is also involved in property related financial services. Some of the company's subsidiaries include Property Finance Securities Limited, Property Finance Holdings Limited, Property Finance Operations CM-2006 Ltd, Property Finance Operations LS-2005 Ltd, Property Finance Operations RML-2005 Ltd, Property Finance Operations CM-2005 Ltd, Property Finance Operations RM-2005 Ltd, Avon Number One Investments Limited and Avon Indemnity Company Limited. * * * Propertyfinance Group Limited reported three consecutive annual net losses of NZ$6.7 million, NZ$134,000 and NZ$935,000 for the years ended March 31, 2008, 2007 and 2006, respectively. The company's primary subsidiary, Propertyfinance Securities Limited (PFSL), went into receivership last August 2007, owing about 4000 retail investors NZ$79 million in debentures. The parent company managed to pull its subsidiary out of receivership in February 2008. PROVINCIAL FINANCE: Delivers Final Payment to Investors ------------------------------------------------------- The receivers of Provincial Finance Ltd have announced a final payment of 1.7c in the dollar, taking total payments to 92.2c, The New Zealand Herald reports. According to the report, receiver Maurice Noone of PricewaterhouseCoopers said that all the assets of Provincial Finance had now been realized, and a claim against Veda Advantage had been settled. "I am pleased to see the receivership reach its conclusion with a significant return for debenture holders," the report quoted Mr. Noone as saying. The total cash repaid to secured debenture holders from the receivership will be NZ$273 million, the Herald notes. Provincial Finance Limited -- http://www.provincialfinance.co.nz/ -- is a New Zealand finance company that provides consumer and commercial finance to individuals and businesses across New Zealand, and promote a range of investment opportunities. As reported in the Troubled Company Reporter-Asia Pacific, Provincial Finance was put into receivership on June 2, 2006, due to breach of covenants and ratios in its Trust Deed, as well as a multi-million write-down for bad debts. The company owes NZ$300 million to 14,000 small investors. WILLIAMS AND ADAMS: Liquidators Sell Wellington and Porirua Sites ----------------------------------------------------------------- David Hargreaves at the BusinessDay reports that liquidators of car dealer Williams and Adams have sold the company's Wellington and Porirua Holden businesses. The report relates that the two sites were sold to a newly formed company Team Capital for an undisclosed amount. According to the report, the liquidators said the sale will save 51 jobs and provide a better outcome for creditors than if the business had been closed down. The liquidators are in the process of selling the headquarters building, the report notes. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 6, 2009, the National Business Review said Williams and Adams, Wellington's largest and long-established car dealership, has gone into liquidation. According to the Business Review, John Fisk of PricewaterhouseCoopers said the business failed due to declining sales amid economic downturn. Williams and Adams -- http://www.williamsandadams.co.nz/-- is a 4th Generation Wellington family owned and operated motor vehicle group that has supplied the greater Wellington region for more than 80 years. It employs 115 staff and has 10 sites. ===================== P H I L I P P I N E S ===================== GLOBAL STEEL: Receives Takeover Bids from Several Groups -------------------------------------------------------- Global Steel Philippines Inc. is now the subject of a takeover bid from several groups, but its Mumbai-based owners, Global Ispat Holdings, are not keen on selling it, Manila Standard reports citing Trade Secretary Peter Favila. "I told them the company should explore such opportunities. If it makes good business sense and the price is right, then they can decide whether to sell it or not", Sec. Favila was quoted by the report as saying. The report, citing Sec. Favila, relates that Global Steel had been operating intermittently for the past two months and only operates when there are orders. Aside from the sluggish demand, the company also had to deal with billions of pesos in unpaid debt to creditor-banks and millions of pesos in overdue electricity bills and city taxes, the report notes. Several banks declared Global Steel in default in October 2005, when it failed to pay its debt, while renegotiating the terms of a PHP12.25-billion loan, according to Manila Standard. Global Steel is a supplier of flat products in the Philippines and other markets in Southeast Asia. Its products include hot rolled coils, hot rolled plates, cold rolled coils and tinplates. ================= S I N G A P O R E ================= ARMADA (SINGAPORE): Faces Judicial Management Petition ------------------------------------------------------ A petition to place Armada (Singapore) Pte Ltd under judicial management will be heard before the High Court of Singapore on May 26, 2009, at 10:00 a.m. The petition were filed by: -- 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. The Applicants' solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00 AIA Tower Singapore 048542 BANK OF AMERICA: Temasek Sells Stake in Firm at a Loss ------------------------------------------------------ Chen Shiyin at Bloomberg News reports that Singapore state-owned fund Temasek Holdings Pte sold its 3.8 percent stake in Bank of America Corp. at a loss that may total US$4.6 billion. The report says the sale may have raised about US$1.27 billion, based on the average price of Bank of America stock in the first quarter. The divestment was completed by March 31, the report relates citing a U.S. filing. Temasek declined to comment on the price, the report notes. About Bank of America Based in Charlotte, North Carolina, Bank of America -- http://www.bankofamerica.com/-- is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company serves more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 18,700 ATMs and online banking with nearly 29 million active users. Following the acquisition of Merrill Lynch on January 1, 2009, Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world. Bank of America offers support to more than 4 million small business owners. The company serves clients in more than 150 countries. Bank of America Corporation stock is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange. The bank needed the government's financial help in completing its acquisition of Merrill Lynch. Merrill Lynch & Co. Inc. -- http://www.ml.com/-- is a wealth management, capital markets and advisory companies with offices in 40 countries and territories. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world's largest publicly traded investment management companies with more than $1 trillion in assets under management. Merrill Lynch's operations are organized into two business segments: Global Markets and Investment Banking (GMI) and Global Wealth Management (GWM). As reported by the Troubled Company Reporter on March 27, 2009, Moody's Investors Service lowered the senior debt rating of Bank of America Corporation to A2 from A1, the senior subordinated debt rating to A3 from A2, and the junior subordinated debt rating to Baa3 from A2. The preferred stock rating was downgraded to B3 from Baa1. The holding company's short-term rating was affirmed at Prime-1. CHARTERED SEMICONDUCTOR: Seeks Debt Restructuring ------------------------------------------------- Katrina Nicholas at Bloomberg News reports that Chartered Semiconductor Manufacturing Ltd is in talks with lenders to change terms of debt due after 2010 as the global recession hurts earnings. Chartered Semi has SG$3.9 billion (US$2.7 billion) of loans and bonds outstanding, including US$390 million of bonds due August 2010, the report says citing data compiled by Bloomberg. The report recalls the company on April 9 said investors bid for more than the stock it offered in a US$300 million share sale to pay down debt and finance investments. Bloomberg News relates Chartered Semi on April 24 reported a US$98.8 million net loss for the first quarter compared with net income of $2.4 million a year earlier. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 2, 2009, for the year ended December 31, 2008, Chartered Semi incurred a net loss of US$92.6 million compared to a net income of US$101.7 million in 2007. As reported in the Troubled Company Reporter-Asia Pacific on April 21, 2009, Moody's Investors Service confirmed the Ba2 corporate family and senior unsecured bond ratings of Chartered Semiconductor. The rating outlook is negative. On March 12, 2009, the TCR-AP reported that Fitch Ratings downgraded Chartered Semiconductor's Long-term foreign currency Issuer Default rating and outstanding senior unsecured debt to 'BB-' (BB minus) from 'BB+'. The Outlook has been revised to Negative from Stable. A TCR-AP report on Feb. 27, 2009, said Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Chartered Semiconductor to 'BB' from 'BB+'. The outlook is negative. At the same time, Standard & Poor's lowered the issue ratings on all of Chartered's senior unsecured notes to 'BB' from 'BB+'. About Chartered Semiconductor Singapore-based Chartered Semiconductor Manufacturing Ltd. (Nasdaq: CHRT and SGX-ST: CHARTERED) -- http://www.charteredsemi.com/-- is a semiconductor foundry, which provides wafer fabrication services and technologies to semiconductor suppliers and systems companies. The company focuses on providing foundry services to customers that serve technologically advanced applications for the communication, computer and consumer sectors. As of December 31, 2007, Chartered owns, or have an interest in, five fabrication facilities, Fabs 2, 3, 5, 6 and 7, all of which are located in Singapore. Fab 7 is its only 300-mm facility. During the year ended December 31, 2007, the company manufactured semiconductors for over 150 different active customers. During 2007, its top five customers collectively accounted for approximately 61% of the company's total net revenue. In March 2008, the company completed the acquisition of Hitachi Semiconductor Singapore Pte Ltd, from Hitachi, Ltd and Hitachi Asia Ltd. CONTINENTAL CHEMICAL: Court to Hear Wind-Up Petition on May 29 -------------------------------------------------------------- A petition to have Continental Chemical Corporation Pte Ltd's operations wound up will be heard before the High Court of Singapore on May 29, 2009, at 10:00 a.m. Raiffeisen Zentralbank Osterreich Aktiengesellschaft filed the petition against the company on May 7, 2009. The Petitioner's solicitors are: Allen & Gledhill LLP One Marina Boulevard #28-00 Singapore 018989 COOL AIR: Court Enters Wind-Up Order ------------------------------------ On May 8, 2009, the High Court of Singapore entered an order to wind up the operations of Cool Air Marine Engineering Pte Ltd. Yong Chan Metal Engineering Pte Ltd filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee’s Office The URA Centre (East Wing) 45 Maxwell Road #06-00 Singapore 069118 GETECH INDUSTRIES: Creditors' Meeting Set for May 27 ---------------------------------------------------- The creditors of Getech Industries Pte Ltd will hold their meeting on May 27, 2009, at 10:00 a.m., at 19 Keppel Road #03-07 Jit Poh Building, Singapore 089058. At the meeting, the creditors will be asked to: -- receive an update on the status of the liquidation of the company; -- appoint a Committee of Inspection, if thought fit; and -- discuss other business. The company's liquidators are: Chia Soo Hien Leow Quek Shiong c/o 19 Keppel Road #02-01 Jit Poh Building Singapore 089058 GOH HUP: Pays Second and Final Dividend --------------------------------------- Goh Hup Heng Electrical Pte Ltd, which is compulsory liquidation, paid the second and final dividend on May 18, 2009. The company paid 100% to all admitted preferential claims, while 6.5% to all admitted unsecured claims. ====================== S O U T H A F R I C A ====================== * Fitch Says South Africa's Mining Output is Expected to Decline ---------------------------------------------------------------- Fitch Ratings says in a report that South Africa's mining output is expected to decline further during 2009 on the back of the global economic downturn. Weak demand for gold, diamonds, copper, iron ore and platinum is expected to continue in the short-term, with a recovery in demand and market conditions not expected prior to 2011. "The adverse effects of the downturn are expected to worsen across emerging market economies during 2009, including South Africa, as reduced exports and continued negative quarterly GDP growth impact credit profiles of manufacturing and mining companies," says Roelof Steenekamp, Associate Director in Fitch's South African Corporate team. The agency notes that companies that continue to display stronger cash generation, to retain conservative debt profiles and focus on liquidity management are better positioned to cope with the impact of the downturn. Official statistics indicated a decline in gold output of 7.6% yoy in March 2009, and a decline of 4.1% in non-gold mining output. Fitch expects that high input costs will persist during 2009 and into 2010, affecting profitability negatively. Fitch rates Impala Platinum Holdings Ltd 'BBB+'/'AA(zaf)'/Negative, AngloGold Ashanti Ltd 'AA-(zaf)'/'F1+ (zaf)'/Stable, and Harmony Gold Mining Company Ltd 'BB'/'BBB- (zaf)'/Stable. =============== X X X X X X X X =============== * BOND PRICING: For the Week May 11 to May 15, 2009 --------------------------------------------------- AUSTRALIA --------- A&R Whitcoulls 9.500% 12/15/10 NZS 64.98 Ainsworth Game 8.000% 12/31/09 AUD 0.70 AMP Group Financ 9.803% 04/01/19 NZD 9.50 AMP Group Financ 6.875% 08/23/22 GBP 66.52 Antares Energy 10.000% 10/31/13 AUD 1.25 Aust & NZ Bank 6.540% 06/29/49 GBP 56.27 Babcock & Brown Pty 8.500% 11/17/09 NZD 24.82 Becton Property Group 9.500% 06/30/10 AUD 0.40 Bemax Resources 9.375% 07/15/14 USD 36.37 Bemax Resources 9.375% 07/15/14 USD 36.37 Bounty Industries Ltd 10.000% 06/30/10 AUD 0.02 Capral Aluminum 10.000% 03/29/12 AUD 1.05 China Century 12.000% 09/30/10 AUD 0.90 Com BK Australia 4.875% 12/19/23 GBP 68.01 Djerriwarrh Inv 6.500% 09/30/09 AUD 3.88 First Australian 15.000% 01/31/12 AUD 0.30 GE Cap Australia 6.000% 03/15/19 AUD 56.18 Goodman Aust Fin 9.750% 07/16/18 GBP 66.79 GPT Management 6.500% 08/22/13 AUD 66.72 Griffin Coal Min 9.500% 12/01/16 USD 37.25 Griffin Coal Min 9.500% 12/01/16 USD 37.25 Hanson Australia 5.250% 03/15/13 USD 58.00 Heemskirk Consol 8.000% 04/29/11 AUD 2.15 Insurance Austra 5.625% 12/21/26 GBP 62.50 Jpm Au Enf Nom 1 3.500% 06/30/10 USD 1.62 Macquarie Bank 5.500% 09/19/16 GBP 72.22 Macquarie Bank 6.500% 05/31/17 GBP 35.61 Minerals Corp 10.500% 09/30/09 AUD 0.55 Metal Storm 10.000% 09/01/09 AUD 0.09 Natl Australiabk 6.750% 06/26/23 EUR 72.48 Nylex Ltd 10.000% 12/08/19 AUD 0.84 Orchard Invest 9.000% 12/15/10 AUD 29.50 Resolute Mining 12.000% 12/31/12 AUD 0.70 Sun Resources NL 12.000% 06/30/11 AUD 0.10 Suncorp-Metway 6.500% 06/22/16 AUD 70.36 Suncorp-Metway 6.625% 10/23/17 GBP 62.56 Suncorp Insuran 6.250% 06/13/27 GBP 55.00 Timbercorp Ltd 8.900% 12/01/10 AUD 26.10 Westfield Fin 5.500% 06/27/17 GBP 64.02 CHINA ----- China Govt Bond 4.860% 08/10/14 CNY 00.00 Chinatrust Comm 5.625% 03/29/49 CNY 59.41 Jiangxi Copper 1.000% 09/22/16 CNY 73.01 HONG KONG --------- City Telecom HK 8.750% 02/01/15 USD 74.73 INDIA ----- Aftek Infosys 1.000% 06/25/10 USD 70.00 AKSH Optifibre 1.000% 01/29/10 USD 57.50 Gemini Commnica 6.000% 07/18/12 EUR 54.50 Hindustan Cons 10.000% 10/25/09 INR 20.00 ICICI Bank Ltd 7.250% 08/29/49 USD 58.00 Jindal Saw Ltd 0.750% 07/01/11 JPY 66.50 Kei Industries 1.000% 11/30/11 USD 45.50 State BK India 6.439% 02/28/49 USD 70.00 Strides Arcolab 0.500% 04/19/10 USD 72.00 Wanbury Ltd 1.000% 04/23/12 EUR 62.50 INDONESIA --------- Indonesia (Rep) 6.625% 02/17/37 USD 73.03 JAPAN ----- Aozora Bank 0.400% 04/27/12 JPY 74.78 Aozora Bank 0.660% 10/27/12 JPY 74.53 Aozora Bank 0.660% 11/12/132 JPY 74.22 Aozora Bank 0.660% 11/27/12 JPY 73.94 Aozora Bank 0.660% 12/12/12 JPY 73.66 Aozora Bank 0.660% 12/27/12 JPY 73.39 Aozora Bank 0.660% 01/12/13 JPY 73.12 Aozora Bank 1.250% 01/25/13 JPY 73.86 Aozora Bank 0.660% 01/27/13 JPY 72.87 Aozora Bank 0.560% 02/12/13 JPY 72.23 Aozora Bank 0.560% 02/27/13 JPY 71.95 Aozora Bank 1.300% 02/27/13 JPY 73.44 Aozora Bank 0.560% 03/12/13 JPY 71.72 Aozora Bank 0.560% 03/27/13 JPY 71.45 Aozora Bank 1.250% 03/27/13 JPY 72.80 Aozora Bank 0.560% 04/12/13 JPY 71.16 Aozora Bank 1.300% 04/26/13 JPY 72.44 Aozora Bank 0.560% 04/27/13 JPY 70.91 Aozora Bank 0.560% 05/12/13 JPY 70.66 Aozora Bank 0.560% 05/27/13 JPY 70.35 Aozora Bank 1.600% 05/27/13 JPY 72.89 Aozora Bank 0.560% 06/12/13 JPY 70.05 Aozora Bank 0.560% 06/27/13 JPY 69.78 Aozora Bank 1.650% 06/27/13 JPY 72.54 Aozora Bank 0.560% 07/12/13 JPY 69.51 Aozora Bank 1.700% 07/26/13 JPY 72.23 Aozora Bank 0.560% 07/27/13 JPY 69.26 Aozora Bank 0.560% 08/12/13 JPY 68.95 Aozora Bank 0.560% 08/27/13 JPY 68.68 Aozora Bank 1.600% 08/27/13 JPY 71.68 Aozora Bank 0.560% 09/12/13 JPY 68.39 Aozora Bank 0.560% 09/27/13 JPY 68.12 Aozora Bank 1.800% 09/27/13 JPY 71.87 Aozora Bank 0.560% 10/12/13 JPY 67.87 Aozora Bank 0.560% 10/25/13 JPY 67.62 Aozora Bank 0.560% 11/12/13 JPY 67.31 Aozora Bank 0.560% 11/27/13 JPY 67.04 Aozora Bank 0.400% 12/12/13 JPY 66.19 Aozora Bank 0.400% 12/27/13 JPY 65.92 Aozora Bank 0.400% 01/12/14 JPY 65.67 Aozora Bank 0.100% 01/27/11 JPY 65.36 Aozora Bank 0.400% 02/12/14 JPY 65.08 Aozora Bank 0.400% 02/27/14 JPY 64.81 Aozora Bank 0.400% 03/12/14 JPY 64.58 Aozora Bank 0.400% 03/27/14 JPY 65.32 Aozora Bank 0.400% 04/12/14 JPY 64.05 Aozora Bank 0.400% 04/27/14 JPY 63.81 Aozora Bank 0.400% 05/12/14 JPY 63.51 Belluna Co Ltd 1.100% 03/21/12 JPY 57.25 CSK Corporation 0.250% 09/30/13 JPY 36.00 Daikyo Inc. 1.880% 03/12/12 JPY 71.75 Ebara Corp 1.300% 09/30/13 JPY 60.23 Elpida Memory In 2.100% 11/29/12 JPY 72.44 Elpida Memory 2.290% 12/07/12 JPY 72.35 ES-Con Japan Ltd 3.360% 05/10/10 JPY 42.28 Hitachi Zosen 1.500% 09/30/12 JPY 72.68 JACCS Co Ltd 1.820% 09/28/15 JPY 71.62 JPN Exp Hld/Debt 0.500% 09/17/38 JPY 57.76 Kenedix Realty I 2.370% 03/15/17 JPY 74.70 Kirayaka Holding 2.590% 03/22/16 JPY 66.12 NIS Group 8.060% 06/20/12 USD 65.37 Orix Corp 2.110% 03/18/16 JPY 73.43 Orix Corp 2.190% 04/18/17 JPY 70.03 Pacific Golf Gro 1.000% 05/01/12 JPY 65.27 Resona Bank 5.986% 08/29/49 GBP 45.31 Resona Bank 4.125% 09/29/49 GBP 48.62 Shinsei Bank 6.819% 09/20/36 USD 62.52 Shinsei Bank 1.600% 08/27/13 JPY 74.48 Shinsei Bank 1.700% 09/27/13 JPY 74.38 Shinsei Bank 1.960% 03/25/13 JPY 66.24 Shinsei Bank 2.010% 10/30/15 JPY 63.76 Shinsei Bank 3.750% 02/23/16 EUR 49.00 Shinsei Bank 5.625% 12/26/49 GBP 37.33 Softbank Corp 7.750% 10/15/13 EUR 59.00 Sumitomo Mitsui 4.375% 07/29/49 EUR 57.00 MALAYSIA -------- Advance Synergy Berhad 2.000% 01/26/18 MYR 0.06 Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.95 Berjaya Land Bhd 5.000% 12/30/09 MYR 3.14 Cagamas Berhad 3.640% 05/05/09 MYR 2.60 Crescendo Corp B 3.750% 01/11/16 MYR 0.70 Dutaland Bhd 4.000% 04/11/13 MYR 0.31 Dutaland Bhd 4.000% 04/11/13 MYR 0.73 Eastern & Orient 8.000% 04/25/11 MYR 0.64 Huat Lai Resources 5.000% 03/28/10 MYR 0.20 Kamdar Group Bhd 3.000% 11/09/09 MYR 0.20 Kretam Holdings 1.000% 08/10/10 MYR 1.06 Kumpulan Jetson 5.000% 11/27/12 MYR 0.46 Lion Diversified 4.000% 12/17/13 MYR 0.60 Mithril Bhd 3.000% 04/05/12 MYR 0.66 Nam Fatt Corp 2.000% 06/24/11 MYR 0.19 Olympia Industri 2.800% 04/11/13 MYR 0.30 Plus SPV Bhd 2.000% 03/11/19 MYR 72.36 Public Bank Berh 6.840% 08/22/36 MYR 69.32 Puncak Niaga Hld 2.500% 11/18/16 MYR 0.71 Rubberex Corp 4.000% 08/14/12 MYR 0.75 Senai-Desaru Exp 3.500% 12/09/19 MYR 65.87 Tenaga Nasional 3.050% 05/10/09 MYR 0.96 Tradewinds Corp 2.000% 02/08/12 MYR 0.57 Tradewinds Plant 3.000% 02/28/16 MYR 1.10 Wah Seong Corp 3.000% 05/21/12 MYR 2.00 Wijaya Baru Glob 7.000% 09/17/12 MYR 0.40 YTL Cement Bhd 4.000% 11/10/15 MYR 1.26 MARSHALL ISLANDS ---------------- Navios Maritime 9.500% 12/15/14 USD 65.87 NEW ZEALAND ----------- Allied Farmers 9.600% 11/15/11 NZD 48.08 Allied Nationwid 11.520% 12/29/49 NZD 40.00 BBI Ntwrks NZ Ltd 8.000% 11/30/12 NZD 17.36 Blue Star Print 9.100% 09/15/12 NZD 22.05 Cadmus Devt Ltd 9.900% 01/15/10 NZD 51.22 Capital Prop NZ 8.000% 04/15/10 NZD 15.70 Contact Energy 8.000% 05/15/14 NZD 0.99 Fidelity Capital 9.250% 07/15/13 NZD 64.94 Fletcher Buildin 7.550% 03/15/11 NZD 9.25 Fletcher Buildin 8.500% 03/15/15 NZD 12.50 Fonterra 8.740% 11/29/49 NZD 70.00 Generator Bonds 8.200% 09/07/11 NZD 44.13 Hellaby Holdings 8.500% 06/15/11 NZD 61.54 Infrastr & Util 8.500% 09/15/13 NZD 15.00 Infratil Ltd 8.500% 02/15/20 NZD 59.14 Infratil Ltd 10.180% 12/29/49 NZD 53.50 Marac Finance 10.500% 07/15/13 NZD 0.89 Rabobank Ned NZ 7.449% 01/29/49 NZD 75.00 Sky Network TV 9.370% 10/16/16 NZD 71.00 South Canterbury 10.430% 12/15/12 NZD 0.96 South Canterbury 10.430% 12/15/12 NZD 0.90 St Laurence Prop 9.250% 07/15/10 NZD 64.90 Shinsei Bank 9.250% 05/15/11 NZD 54.06 Trustpower Ltd 8.500% 09/15/12 NZD 8.00 Trustpower Ltd 8.500% 03/15/14 NZD 12.50 Vector Ltd 8.000% 12/29/49 NZD 8.35 PHILIPPINES ----------- First Gen Corp 2.500% 02/11/13 USD 69.81 SINGAPORE --------- Capitaland Ltd. 2.950% 06/20/22 SGD 66.82 Chartered Semico 6.250% 04/04/13 USD 67.45 Chartered Semico 6.375% 08/03/15 USD 64.33 United ENG Ltd 1.000% 03/03/14 SGD 1.00 SOUTH KOREA ----------- Hynix Semi Inc. 7.875% 06/27/17 KRW 64.63 Hynix Semi Inc. 7.857% 06/27/17 USD 65.52 Korea Elec Pwr 6.000% 12/01/26 USD 66.41 Korea Elec Pwr 7.000% 02/01/27 USD 74.65 Korea Elec Pwr 6.750% 08/01/27 USD 72.21 Rep of Korea 4.250% 12/07/21 EUR 72.29 Shinhan Bank 5.663% 03/02/25 USD 56.64 SRI LANKA --------- Sri Lanka Govt 8.500% 02/01/18 LKR 72.20 Sri Lanka Govt 8.500% 07/15/18 LKR 71.72 Sri Lanka Govt 7.500% 08/15/18 LKR 66.59 Sri Lanka Govt 7.000% 10/01/23 LKR 60.23 THAILAND -------- Advance Agro Pub 11.000% 12/19/12 USD 61.18 Krung Thai Bank 7.378% 10/29/49 USD 59.87 True Move 10.375% 08/01/14 USD 59.54 ********* 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 ***