/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090525.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 Monday, May 25, 2009, Vol. 12, No. 101 Headlines A U S T R A L I A BRISCONNECTIONS: To Auction Up to 278 Million Defaulted Securities CENTRO NP: S&P Affirms Long-Term Corporate Credit Rating at 'CCC+' OZJET AIRLINES: Parent Calls In Administrators H O N G K O N G ASSET MANAGEMENT: Creditors' Proofs of Debt Due on June 22 CASTEL QIHUA: Creditors' Proofs of Debt Due on June 22 CHARTER CHALLENGE: Creditors' Proofs of Debt Due on June 22 FINE HORSE: Tang and Ying Step Down as Liquidators HESON ENTERPRISE: Commences Wind-Up Proceedings LAI YEE: Creditors' Proofs of Debt Due on June 25 MAK COMMEMORATIVE: Placed Under Voluntary Wind-Up ONYX FUNDING: Moody's Downgrades Ratings on 2006-1 Notes PEACHROSE AGENTS: Placed Under Voluntary Wind-Up PERIBIT NETWORKS: Creditors' Proofs of Debt Due on June 12 PRO-ONE: Inability to Pay Debts Prompts Wind-Up RUBY FINANCE: Moody's Downgrades Ratings on 2004-3 Notes SPREADFAITH INVESTMENT: Placed Under Voluntary Wind-Up U-RIGHT TRADING: Inability to Pay Debts Prompts Wind-Up WEALTHY BEST: Members to Receive Wind-Up Report on June 23 Y.M. LAU: Appoints Tang Tin Ying as Liquidator YUE HING: Members to Receive Wind-Up Report on June 24 I N D I A AHW STEELS: CRISIL Assigns 'BB+' Rating on Various Bank Facilities AMD INDUSTRIES: CARE Assigns 'CARE BB+' Rating on LT Bank Loans GNA DURAPARTS: CRISIL Places 'BB+' Rating on INR230.0MM Term Loan MANIPAL ACUNOVA: Stretched Liquidity Prompts CRISIL 'B+' Ratings PREMCO RAIL: CRISIL Assigns 'BB' Rating on INR143.90MM Cash Credit SRI JAYAJOTHI: CARE Places 'B' Rating on INR55.79cr LT Bank Loan SRI RAMNARAYAN: Low Net Worth Cues CRISIL To Assign 'B' Ratings TATA MOTORS: JLR Bridge Loan Refinancing to Be Completed This Week VITAL HEALTH: CRISIL Rates INR57.3 Million Long Term Loan at 'BB' VITAL LABORATORIES: CRISIL Puts 'BB' Rating on INR60MM Cash Credit I N D O N E S I A TELEKOMUNIKASI: Faces Woes on Iran Telecom Stake Acquisition J A P A N PEGASUS FUNDING: S&P Affirms 'B' Rating on Class B of Notes SONY CORP: To Slash Number of Suppliers by 50% K O R E A SSANGYONG MOTOR: Court Approves Restructuring Plan SSANGYONG MOTOR: Threatens to Close Plant if Strike Goes On N E W Z E A L A N D AUSTRAL PACIFIC: Infratil Incurs NZ$12.1-Mln Impairment Losses WILLIAM HILL: Placed in Receivership XERO LIMITED: Raises NZ$5.8 Million Through Share Purchase Plan S I N G A P O R E COB TECHNOLOGY: Court Enters Wind-Up Order * SINGAPORE: MTI Forecasts GDP Growth at -9.0% to -6.0% in 2009 - - - - - ================= A U S T R A L I A ================= BRISCONNECTIONS: To Auction Up to 278 Million Defaulted Securities ------------------------------------------------------------------ Approximately 278 million or over 70 percent BrisConnections stapled securities will be offered for sale after investors failed to pay the second installment by April 29. In a statement to the Australian Securities Exchange, BrisConnections Management Company Limited said these defaulted securities will be offered for sale at a public auction, unless the full amount owing in respect of the second installment is received prior to the auction date and the sale of those securities canceled by Brisconnections. The auction will be held at 10:00 a.m. on June 5, 2009 at HSBC Building, Ground Floor Conference Room, 300 Queen Street, in Brisbane, Queensland. In accordance with BMCL's obligations under the Underwriting Agreement, BMCL will set a reserve price of $1.00 per stapled security at the auction. Stapled securities will be offered in lots of no less than 500 stapled securities. "Although purchasers of the defaulted stapled securities sold at the public auction will not be liable to pay the second installment, they will be liable to pay the third installment of $1.00 per stapled security on January 29, 2010 if they hold the stapled securities on the record date for that installment," Brisconnections said. As reported in the Troubled Company Reporter-Asia Pacific on April 27, 2009, the Age said a major shareholder in BrisConnections has launched a AU$1.3 billion class action against the company and Macquarie Bank. The Age said the claim was filed in the Federal Court in Sydney on April 24, by lawyers for Brisbane Toll Road Link ("BTR")- owned by US-based New Hampton Distressed Asset Fund and represented by Jim Byrnes. BTR owns 15.2 percent of BrisConnections. According to the Age, Mr. Byrnes said the class action was launched on behalf of all past and present unit holders. The Age related that Mr. Byrnes said the action alleged misleading statements and errors in the product disclosure statement. Wind Up Bid As reported in the TCR-AP on April 15, 2009, The Australian said a vote to wind up BrisConnections failed after renegade investor Nicholas Bolton sold his voting rights to Leighton Holdings Ltd. The Australian, citing Leighton Holdings in a filing to the Australian stock exchange, said the company has agreed to pay AU$4.5 million for the voting rights associated with Mr. Bolton's 19.8 percent stake in BrisConnections. The Australian said Mr. Bolton voted against his own motion to wind up BrisConnections. The motion to wind the company up failed with 63.34% of votes against the motion and 35.66% of votes in favor, The Australian noted. Background BrisConnections was awarded a 45-year concession to design, construct, operate, maintain and finance the AU$4.8 billion Airport Link toll road in Brisbane, according to a report posted at Core Economics Web site by Sam Wylie. The Core Economics related the equity financing component of the AU$4.8 billion project is raised by issuing 390 million units at AU$3 each, AU$1 is paid in July and additional payments of AU$1 must be met by the unit holders on April 20, 2009 and January 29, 2010. According to the Core Economics, BrisConnections has promised a payment of 5.95c to unit holders in 2009 before the first AU$1 installment is due. However, the units fall in price to 41c on their first day of listing on the ASX. The issue was undersubscribed, as evidenced by the large number of shares held by the underwriters after the listing. The units continue to fall in price, falling below 5c per unit in mid September and reaching 0.1c per unit, the lowest possible price for a listing on the ASX, in November 2008. BrisConnections had announced that the first distribution to unit holders will not take place until after the receipt of the first AU$1 installment in April 2009. About BrisConnections BrisConnections Management Company Limited (ASX:BCSCA) -- http://www.brisconnections.com.au/-- is an Australia-based company. The company is engaged in designing, constructing, operating, maintaining and financing Airport Link in Australia. Airport Link is a 6.7 kilometer toll road, mainly underground, connecting the North-South Bypass Tunnel, Inner City Bypass and local road network at Bowen Hills, to the northern arterials of Gympie Road and Stafford Road at Kedron, Sandgate Road and the East West Arterial leading to the airport. CENTRO NP: S&P Affirms Long-Term Corporate Credit Rating at 'CCC+' ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'CCC+' long-term corporate credit rating on U.S.-based shopping-center owner Centro NP LLC. Centro NP's senior unsecured note ratings were also affirmed at 'CCC+', and a recovery rating of '3' was assigned to these notes, reflecting S&P's expectation of meaningful recovery prospects for bondholders in the event of a default. At the same time, the ratings were removed from CreditWatch with developing implications, where they were initially placed on Jan. 3, 2008. The rating outlook on the long-term rating is negative. These rating actions follow the recent agreement on debt stabilization between the lenders to Centro NP, its immediate parent—Super LLC, and the ultimate Australian parent—Centro Properties Group. The rating affirmation factors in: the vulnerability that Centro NP creditors face with sizeable near- term debt maturities; a U.S.-based retail asset portfolio that is being buffeted by weak economic conditions and fragile consumer sentiment; the potential for further tenant defaults to weaken the group's income and debt-servicing capacity; and a highly leveraged parent. "In our view, these debt extensions increase Centro NP management's ability to manage the assets through these difficult economic conditions," Standard & Poor's credit analyst Craig Parker said. "However, S&P note that Centro NP's access to readily available liquidity is dependant on the support from Super LLC." The negative rating outlook factors in S&P's expectation that the Centro NP rating will continue to come under pressure from these: tenants remain vulnerable to continued weak economic conditions; asset valuations may encounter further stress; refinancing of maturing indebtedness remains challenging; and debt covenants are tested at Centro NP and its parent entity. As Centro NP approaches the Dec. 31, 2010 maturity date for its revolving bank debt, S&P would look to evidence that management are able to position the company's capital structure on a more stable footing; if this occurs, the outlook may be revised to stable. OZJET AIRLINES: Parent Calls In Administrators ---------------------------------------------- OzJet Airlines has been placed in voluntary administration after abruptly suspending flights from Perth to Derby and Bali. According to Flightglobal, OzJet CEO, Willie O'Neill, told Air Transport Intelligence ("ATI") that the company was placed into administration by OzJet chairman Nicholas Leach on Wednesday, May 20. Peter Ngan, of Sydney accounting firm Ngan & Co, was appointed as administrator to the company. Mr. Leach is also CEO of HeavyLift Cargo Airlines, which bought OzJet in May 2008 from Paul Stoddart, the former owner of the Minardi Formula One race team, Flightglobal says. According to The Australian, Ozjet blamed the decision on problems with the Civil Aviation Safety Authority and Indojet Asia. The Australian, citing Perth airport chief executive Brad Geatches, says Ozjet had arrears amounting to hundreds of thousands of dollars and extending back to 2008. The Australian relates that Mr. Geatches said the Ozjet had broken "dozens of promises" and Ozjet had become a significant credit risk after parent Heavylift had told the airport it would no longer support the airline. Mr. O'Neill confirmed Alliance Airlines Fokker 100s are now being used to maintain OzJet's services from Perth to Derby in Western Australia but he declines to say which third-party airlines are being used for its services from Perth to Bali Denpasar and Perth to Christmas Island, Flightglobal relates. About OzJet Airlines Based in Melbourne, Australia, OzJet Airlines -- http://www.ozjet.com.au/-- operates a fleet of Boeing 737-200 aircraft and provides both charters and Regular Passenger Transport (RPT) services. ================ H O N G K O N G ================ ASSET MANAGEMENT: Creditors' Proofs of Debt Due on June 22 ---------------------------------------------------------- The creditors of Asset Management HK Limited are required to file their proofs of debt by June 22, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 12, 2009. The company's liquidators are: Thomas Andrew Corkhill Iain Ferguson Bruce Gloucester Tower, 8th Floor The Landmark 15 Queen's Road, Central Hong Kong CASTEL QIHUA: Creditors' Proofs of Debt Due on June 22 ------------------------------------------------------ The creditors of Castel Qihua Hi-Tech Investments Limited are required to file their proofs of debt by June 22, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 14, 2009. The company's liquidator is: Tam Kan Wing Millennium City Unit 2002, 20th Floor Millenium City 3 370 Kwun Tong Road, Kowloon Hong Kong CHARTER CHALLENGE: Creditors' Proofs of Debt Due on June 22 ----------------------------------------------------------- The creditors of Charter Challenge Limited are required to file their proofs of debt by June 22, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 14, 2009. The company's liquidators are: Cheng Kwok Wai David Chan Yuen Bik Jane Gloucester Tower, 31st Floor The Landmark 11 Pedder Street, Central Hong Kong FINE HORSE: Tang and Ying Step Down as Liquidators -------------------------------------------------- On May 11, 2009, Alan C W Tang and Alison Wong Lee Fung Ying stepped down as liquidators of Fine Horse Company Limited. HESON ENTERPRISE: Commences Wind-Up Proceedings ----------------------------------------------- Heson Enterprise Limited commenced wind-up proceedings on May 20, 2009. The company's provisional liquidator is: D.C. (CPA) Limited Ginza Square, 17th Floor 565-567 Nathan Road, Kowloon Hong Kong LAI YEE: Creditors' Proofs of Debt Due on June 25 ------------------------------------------------- The creditors of Lai Yee Kee Cotton Yarn Limited are required to file their proofs of debt by June 25, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 14, 2009. The company's liquidator is: Liu Chi Lai Wah Kit Commercial Centre, 13th Floor 302 Des Voeux Road Central Hong Kong MAK COMMEMORATIVE: Placed Under Voluntary Wind-Up ------------------------------------------------- At an extraordinary general meeting held on May 13, 2009, the members of Mak Commemorative Association Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Mak Lei Wun Dynasty Court Flat B, 36th Floor, Tower 4 23 Old Peak Road Hong Kong ONYX FUNDING: Moody's Downgrades Ratings on 2006-1 Notes -------------------------------------------------------- Moody's Investors Service announced that is has downgraded its rating of series 2006-1 notes issued by Onyx Funding Limited. The notes have exposure to Lehman Brothers Special Financing Inc. Moody's explained that LBSFI acts as a credit default swap counterparty in the transaction and that its obligations as such are guaranteed by Lehman Brothers Holdings Inc. The filing of a petition of bankruptcy by LBHI under Chapter 11 of the U.S. Bankruptcy Code on September 15, 2008 is expected to result in an Event of Default under the CDS in the transaction and an Event of Default of the Transaction itself under the applicable transaction documents. Moody's noted that following a Transaction Event of Default certain parties to the transaction may elect to accelerate the maturity of the notes and to liquidate collateral. The proceeds of such liquidation may not be sufficient to repay in full the principal amount and accrued and unpaid interest of notes. The rating action reflects the increased expected loss attributable to the notes. The severity of losses may be different, however, depending on the timing and choice of remedy to be pursued following the Event of Default. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology for corporate synthetic CDOs as described in Moody's Special Report below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (April 2009) The rating action is: Onyx Funding Limited: (1) US$15,000,000 Synthetic Portfolio Notes due 2014, Series 2006-1 -- Current Rating: Caa3 -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: 17 September 2008, A2 placed under review for possible downgrade PEACHROSE AGENTS: Placed Under Voluntary Wind-Up ------------------------------------------------ On May 15, 2009, the shareholders of Peachrose Agents Limited passed a resolution that voluntarily winds up the company's operations. The company's liquidator is: Chan Sun Kwong Beverley Commercial Centre Office 1818, 18th Floor 87-105 Chatham Road South Tsimshatsui, Kowloon Hong Kong PERIBIT NETWORKS: Creditors' Proofs of Debt Due on June 12 ---------------------------------------------------------- The creditors of Peribit Networks (Asia Pacific) Limited are required to file their proofs of debt by June 12, 2009, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 12, 2009. The company's liquidators are: Ying Hing Chiu Yeung Betty Yuen Three Pacific Place, Level 28 1 Queen's Road East Hong Kong PRO-ONE: Inability to Pay Debts Prompts Wind-Up ----------------------------------------------- On May 14, 2009, a special resolution was passed that voluntarily winds up Pro-One Computer Limited's operations due to its inability to pay debts when it fall due. The company's liquidators are Wong Sun Keung and Tsui Mei Yuk Janice. RUBY FINANCE: Moody's Downgrades Ratings on 2004-3 Notes -------------------------------------------------------- Moody's Investors Service announced that is has downgraded its rating of series 2004-3 notes issued by Ruby Finance Public Limited. The notes have exposure to Lehman Brothers Special Financing Inc. Moody's explained that LBSFI acts as a credit default swap counterparty in the transaction and that its obligations as such are guaranteed by Lehman Brothers Holdings Inc. The filing of a petition of bankruptcy by LBHI under Chapter 11 of the U.S. Bankruptcy Code on September 15, 2008 is expected to result in an Event of Default under the CDS in the transaction and an Event of Default of the Transaction itself under the applicable transaction documents. Moody's noted that following a Transaction Event of Default certain parties to the transaction may elect to accelerate the maturity of the notes and to liquidate collateral. The proceeds of such liquidation may not be sufficient to repay in full the principal amount and accrued and unpaid interest of notes. The rating action reflects the increased expected loss attributable to the notes. The severity of losses may be different, however, depending on the timing and choice of remedy to be pursued following the Event of Default. Moody's initially analyzed and continues to monitor this transaction using primarily the methodology for corporate synthetic CDOs as described in Moody's Special Report below: -- Moody's Approach To Rating Corporate Collateralized Synthetic Obligations (April 2009) The rating action is: Ruby Finance Public Limited: (1) Series 2004-3 US$50,000,000 Credit-Linked Synthetic Portfolio Notes due 12 May 2011 -- Current Rating: Caa1 -- Prior Rating: A3, on review for possible downgrade -- Prior Rating Date: 17 September 2008, A3 placed under review for possible downgrade SPREADFAITH INVESTMENT: Placed Under Voluntary Wind-Up ------------------------------------------------------ At an extraordinary general meeting held on May 18, 2009, the members of Spreadfaith Investment Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Lee King Yue Two International Finance Centre 72-76th Floor 8 Finance Street, Central Hong Kong U-RIGHT TRADING: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------------- On May 13, 2009, the shareholders of U-Right Trading Limited passed a resolution that voluntarily winds up the company's operations due to its inability to pay debts when it fall due. The company's liquidators are: Messrs. Lai Kar Yan (Derek) Darach E. Haughey One Pacific Place, 35th Floor 88 Queensway Hong Kong WEALTHY BEST: Members to Receive Wind-Up Report on June 23 ---------------------------------------------------------- The members of Wealthy Best Development Limited will receive the liquidator's report on the company's wind-up proceedings and property disposal on June 23, 2009, at 10:00 a.m. The meeting will be held at Unit 402, 4th Floor of Malaysia Building, No. 50, Gloucester Road, in Wanchai, Hong Kong. Y.M. LAU: Appoints Tang Tin Ying as Liquidator ---------------------------------------------- On May 4, 2009, a special resolution was passed appointing Tang Tin Ying as the liquidator of Y.M. Lau Charity Fund Limited. The Liquidator can be reached at: Tang Tin Ying Hang Seng North Point Building Rooms 2305-8, 23rd Floor 341 King's Road Hong Kong YUE HING: Members to Receive Wind-Up Report on June 24 ------------------------------------------------------ The members of Yue Hing Land Investment Company, Limited will receive the liquidator's report on the company's wind-up proceedings and property disposal on June 24, 2009, at 12:00 noon. The meeting will be held at Room 1903 of New World Tower, in 18 Queen's Road Central, Hong Kong. ========= I N D I A ========= AHW STEELS: CRISIL Assigns 'BB+' Rating on Various Bank Facilities ------------------------------------------------------------------ CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank facilities of AHW Steels Ltd (AHW). INR320 Million Cash Credit BB+/Stable (Assigned) INR124.3 Million Term Loan BB+/Stable (Assigned) INR34.2 Million Proposed Long BB+/Stable (Assigned) Term Bank Loan Facility INR71.5 Million Packing Credit P4 (Assigned) INR150 Million Letter of Credit/ P4 (Assigned) Bank Guarantee The ratings reflect AHW's marginal market share and exposure to cyclicality, in the steel industry, and the lack of backward integration in its operations. These weaknesses are partially offset by AHW's established presence in the steel industry, and the benefits it derives from the experience of its promoters. Outlook: Stable CRISIL believes that AHW will maintain its moderate business risk profile on the back of their established experience in this industry. The outlook may be revised to 'Positive' if there is higher-than-expected increase in AHW's revenues and profitability, or if the company undertakes initiatives to integrate its operations. Conversely, the outlook may be revised to 'Negative' if the company undertakes large debt-funded capital expenditure (capex) or reports lower-than-expected capacity utilisation levels. About AHW Steels AHW Steels was formed in 1949 by the Beriwal family in Kolkata and was engaged in the business of manufacturing tor steel. The Bagadia family took over the company in 1982. The company's rolling mill commenced operations in 1985 with a capacity of 24,000 tonnes per annum (tpa) in Sodepur, West Bengal. The company currently has a capacity of 48,000 tpa. AHW started windmill operations in 2005-06 (refers to financial year, April 1 to March 31) in Maharashtra. It has two wind turbine generators with a combined capacity of 2.5 mega watts (MW). AHW reported a profit after tax (PAT) of INR30.7 million on net sales of INR2994 million for 2007-08, as against a PAT of INR10.9 million on net sales of INR2181 million for 2006-07. AMD INDUSTRIES: CARE Assigns 'CARE BB+' Rating on LT Bank Loans --------------------------------------------------------------- CARE assigned 'CARE BB+' [CARE Double B (Plus)] rating to the Long-term Bank Facilities of AMD Industries Limited (AMD). This rating is applicable for facilities having tenure of over one year. Facilities with this rating are considered to offer inadequate safety for timely servicing of debt obligations. Such facilities carry high credit risk. CARE assigns '+' or '-' signs to be shown after the assigned rating (wherever necessary) to indicate the relative position within the band covered by the rating symbol. Also, CARE assigned 'PR 4' [PR Four] rating to the Short-term Bank Facilities of AMD. This rating is applicable for facilities having tenure up to one year. Facilities with this rating would have inadequate capacity for timely payment of short-term debt obligations and carry very high credit risk. Such facilities are susceptible to default. These ratings are assigned to outstanding term loan facility of INR12.22 cr, outstanding short-term loan facility of INR9.00 cr, fund-based limits of INR16.00 cr and non-fund based limits of INR19.00 cr. The ratings take into account the company's high credit risk profile characterised by low profitability and high debt repayment obligations in the short term. The ratings also take into account the company's significant exposure to subsidiary companies engaged in real estate business which has a negative outlook in the near-term scenario. However, the risks are partially mitigated by experienced promoters & management team, long track record, reputed client base and comfortable gearing levels. Going forward, the ability of the company to improve its profitability, sufficiency & timeliness of proceeds from the proposed asset sale and to generate returns from real estate investment shall be the key rating sensitivities. The company was incorporated in 1983 as 'Ashoka Metal Décor Private Ltd' to carry out the business of manufacturing packaging products for the beverage industry. The name was changed to AMD Metplast Pvt. Limited in 2004 and subsequently to AMD Industries Ltd in 2007. The affairs of the business are managed by various divisional heads under the supervision of Mr. Harswarup Gupta (Chairman) and Mr. Ashok Gupta (Managing Director). AMD is mainly owned by the promoters with about 52.5% stake as on March 31, 2008. AMD made an Initial Public Offer (IPO) of equity shares in February 2007 aggregating INR76.25 cr. AMD is engaged in providing Beverage Packaging solutions with two sets of product line: 1. Crown caps (metallic closure) for glass bottles and 2. Polyethylene Terpthalate (PET) Preforms and Plastic Closures for PET bottles. The company has a long track of supplying caps and preforms to leading bottlers and soft drink manufacturers of India. AMD is having multi-location manufacturing facilities with total installed capacity of 2,90,000 cases p.a, 440 million pieces p.a and 9,000 MTPA, respectively, for crown caps, plastic closures and PET preforms. AMD was also engaged in trading business of various products till FY08. Over the period FY06-08, the total income of the company had seen varied trends; it decreased in FY07 due to fluctuating trading income and decline in crown sales. However it increased in FY08 due to higher trading income and increase in PET sales. The PBILDT has declined over the years primarily on account of higher contribution of low-yield trading income and declining return from the crown division. The company also registered losses at PBT level (before other income) in preceding two years. The non- operating income (primarily interest income) helped the company to register net profit of INR3.2 cr in FY08. The company has considerable exposure in the real estate business through its subsidiaries which has impacted the risk profile of the company in the light of the negative outlook of the sector. The company posted sales of INR40.3 cr in H1FY09 and PAT of INR4.5 cr. The margins have improved in H1FY2009 as compared to H1FY2008 due to higher sales volume and higher contribution of manufacturing income as against trading income which has low margins. GNA DURAPARTS: CRISIL Places 'BB+' Rating on INR230.0MM Term Loan ----------------------------------------------------------------- CRISIL has assigned its ratings of 'BB+/Stable/P4' to the various bank facilities of GNA Duraparts Pvt Ltd (GNA Dura). INR220.0 Million Cash Credit Limit * BB+/Stable (Assigned) INR230.0 Million Term Loan BB+/Stable (Assigned) INR220.0 Million Bill Purchase/ P4 (Assigned) Discounting ** INR30.0 Million Letter of Credit P4 (Assigned) * Includes WCDL and Stock at Branches of INR170.0 million and 10.0 million respectively ** Includes WCDL and Bill Purchase Clean of INR 170.0 million and 5.0 million respectively The ratings reflect GNA Dura's exposure to risks relating to volatility in raw material prices, and its exposure to the commercial vehicle (CV) segment, which is cyclical in nature. However, these weaknesses are partially offset by the benefits that the company derives from its established relationships with original equipment manufacturers (OEMs), efficient working capital management, and average financial risk profile. Outlook: Stable CRISIL believes that GNA Dura will maintain a stable credit risk profile on the back of established presence in the transmission components industry and low concentration risk due to customer diversification. The outlook may be revised to 'Positive' if the company reports substantial growth in operating margins and improved working capital management. Conversely, the outlook may be revised to 'Negative' if the company undertakes large, debt- funded capital expenditure, or reports decline in operating margins. About GNA Duraparts Set up in Mehtiana, Punjab, GNA Dura converted to a private limited company in 2008. The company manufactures gears and allied products and sells them to the OEM and after-sales segments. The company is part of the GNA Group established in 1946, which manufactures transmission components for CVs, agricultural tractors, and off-highway equipments. GNA Dura reported a profit after tax (PAT) of INR37.8 million on sales of INR938.3 million for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of INR57.2 million on sales of INR868.7 million for 2006-07. MANIPAL ACUNOVA: Stretched Liquidity Prompts CRISIL 'B+' Ratings ---------------------------------------------------------------- CRISIL has assigned its ratings of 'B+/Negative/P4' to the bank facilities of Manipal Acunova Ltd (Manipal Acunova). INR75.0 Million Long Term Loan B+/Negative (Assigned) INR42.0 Million Proposed Long B+/Negative (Assigned) Term Loan INR50.0 Million Cash Credit Limit B+/Negative (Assigned) INR25.0 Million Letter of Credit Limit P4 (Assigned) INR308.0 Million Letter of Comfort Limit P4 (Assigned) (All the above bank facilities are with State Bank of India) The ratings reflect Manipal Acunova's stretched liquidity, and weak debt protection measures. The ratings also factor in small scale of operations and intense competition in the contract research industry and the company's exposure to risks relating to unfavourable changes in regulatory policies and sponsor contracts. These weaknesses are, however, partially offset by the benefit that the company derives from promoters' experience in the contract research industry, and healthy operating efficiencies. CRISIL has consolidated the business and financial risk profiles of Manipal Acunova, and its wholly-owned subsidiaries Acunova GmbH, Germany, Acunova Life Sciences Inc, USA, Acunova Life Sciences Ltd, UK, and Ecron Acunova GmbH, UK; this is because these companies have a common ownership, management and line of business. Outlook: Negative CRISIL expects Manipal Acunova's financial risk profile to remain weak on account of stretched liquidity, marked by negative net cash accruals and low profitability. The ratings may be downgraded if the company continues to report negative cash accruals, or undertakes large, debt-funded capital expenditure/acquisitions, thereby straining its capital structure. Conversely, the outlook may be revised to 'Stable' if Manipal Acunova's revenues and profitability improve substantially owing to stabilisation of operations/acquisitions, or if equity infusions improve its financial risk profile. About Manipal Acunova Set up in 2005 by MEMG International India Pvt Ltd and Acunova Life Sciences Pvt Ltd, Manipal Acunova is a contract research organisation providing services such as clinical trials, Bio- availability/Bio-equivalent studies, clinical data management, site management, and central reference lab. It has research facilities in Bangalore, Mangalore, and Manipal and overseas operations in Europe and USA through wholly-owned subsidiaries. Manipal Acunova reported a net loss of INR79.82 million on net sales of INR438.42 million for 2007-08 (refers to financial year, April 1 to March 31), as against a net loss of INR119.82 million on net sales of INR134.66 million for 2006-07. PREMCO RAIL: CRISIL Assigns 'BB' Rating on INR143.90MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its ratings of 'B/Stable/P4' to the bank facilities of Premco Rail Engineers Limited (Premco Rail). INR143.90 Million Cash Credit B/Stable (Assigned) INR206.10 Million Proposed Cash Credit B/Stable (Assigned) INR540.00 Million Bank Guarantee* P4 (Assigned) INR210.00 Million Proposed Bank Guarantee P4 (Assigned) * includes a sub-limit for Letter of Credit of INR30.00 million. The ratings reflect the recent overdrawals in the company's bank limits, and its working capital-intensive operations. The ratings also factor in the company's exposure to risks relating to revenue concentration in the rail infrastructure segment. These weaknesses are partially offset by Premco Rail's healthy gearing and debt protection measures, and the benefits that it derives from its promoters' experience. Outlook: Stable CRISIL believes that Premco Rail's liquidity profile will remain strained on account of its working capital requirements. The outlook may be revised to 'Positive' if the company's liquidity improves owing to enhancement in its bank limits or significant equity infusion. Conversely, the outlook may be revised to 'Negative' if the company reports lower-than-expected operating margins, or undertakes any large, debt-funded capital expenditure. About Premco Rail Set up in 1988 by Mr. Prem Kumar Lihala, Premco Rail renders integrated engineering, procurement, and construction services for construction of railway siding and main line railway tracks, and for overhead electrification, bridges, pavements and road works in India and abroad. The company is an approved consultant for design and construction of private sidings for all the 19 zonal railway authorities in the country. Premco Rail caters to both the private and public sector. It acquired propertiorship firm, Premco Traders, in 2006-07 (refers to financial year, April 1 to March 31). Premco Rail reported a profit after tax (PAT) of INR94.5 million on net sales of INR1.17 billion for 2007-08, as against a PAT of INR28.7 million on net sales of INR508 million for 2006-07. SRI JAYAJOTHI: CARE Places 'B' Rating on INR55.79cr LT Bank Loan ---------------------------------------------------------------- CARE has assigned a 'CARE B' [Single B] rating to the Long-term Bank Facilities of Sri Jayajothi Textile Mills Pvt Limited (SJTM). This rating is applicable for facilities having tenure of over one year. Facilities with this rating are considered to offer low safety for timely servicing of debt obligations and carry very high credit risk. Such facilities are susceptible to default. Further, CARE has assigned 'PR4' [PR Four] rating to the Short- term Bank Facilities of SJTM. This rating is applicable for facilities having tenure up to one year. Facilities with this rating would have inadequate capacity for timely payment of short- term debt obligations and carry very high credit risk. Such facilities are susceptible to default. Amount Instrument (INR Crore) Rating ---------- ---------- ------ Long-term Bank Facilities 55.79 'B' Short-term Bank Facilities 41.82 'PR4' Rating Rationale The ratings primarily factor in SJTM's delays in servicing its debt obligations. Notwithstanding SJTM's presence in the spinning industry for over a decade, the ratings are also constrained by the weak financial position of the company characterized by high gearing levels, falling profits, tight liquidity position and inadequate operational cash flows to meet its debt obligations. The ratings also take into account the highly competitive nature of the textile industry, prevailing industry environment characterized by demand slowdown in the industry, increase in cotton costs and the unfavorable power situation in Tamil Nadu. About Sri Jayajothi Textile SJTML is a closely-held company set up in 1990 at Rajapalayam, Tamil Nadu as a wholly-owned subsidiary of Sri Jayajothi & Co Ltd. The company is engaged in the business of spinning cotton yarn (count ranging from 40s to 120s) and had an installed capacity of 1, 00,704 spindles as on March 31, 2008. The day-to-day activities of the company are currently managed by Mr. T.R. Jayaraman, Managing Director (son of Mr. T. Ramasamy Naicker) and he is assisted by his son Mr. J. Rajasekaran. During FY08, SJTM reported net sales of INR127 cr as against INR114 cr in FY07. However, PAT declined from INR2 cr in FY07 to 0.15 cr in FY08. Against the backdrop of increasing input costs, volatile currency markets along with the overall slowdown in the world economy, SJTM though an established player in the spinning industry is bound to face pressure on its operations. The ability of the company to ensure growth in volumes, maintain its margins and generate sufficient cash accruals to ensure timely debt servicing would remain the key rating sensitivities. SRI RAMNARAYAN: Low Net Worth Cues CRISIL To Assign 'B' Ratings --------------------------------------------------------------- CRISIL has assigned its ratings of 'B/Negative/P4' to the bank facilities of Sri Ramnarayan Mills Ltd (SRML). INR26 Million Cash Credit B/Negative (Assigned) INR32.8 Million Long Term Loan B/Negative (Assigned) INR1 Million Bank Guarantee P4 (Assigned) INR20 Million Letter of Credit P4 (Assigned) The ratings reflect SRML's weak financial risk profile marked by high gearing and low net worth, geographical concentration in its revenue profile, small scale of operations, and its exposure to risks relating to fluctuations in cotton prices. These weaknesses are partially offset by SRML's established presence in the textile spinning industry. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of SRML and its subsidiary, SM Textiles Ltd (SMTL), together referred to as the Sri Ramnarayan group. Both the entities are in the same line of business, under the same management, and have fungible funds. Outlook: Negative CRISIL believes that SRML's financial risk profile will weaken over the medium term, on account of the current unfavourable conditions in the textile spinning industry. The ratings may be downgraded in case the company reports significant deterioration in its financial risk profile, or undertakes large debt-funded capital expenditure, affecting its capital structure. Conversely, the outlook may be revised to 'Stable' if the company scales up its operations and considerably improves its financial risk profile. About Sri Ramnarayan The Sri Ramnarayan group was incorporated in 1954 and commenced operations in 1956. Promoted by Mr. N Velappan, in Coimbatore, Tamil Nadu, the group is currently managed by his son, Mr. V Jayaraman. The group manufactures combed cotton yarn in counts of 60s and 90s and has an installed capacity of 39,000 spindles. SRML reported a net loss of INR7.24 million on net sales of INR222.40 million for 2007-08 (refers to financial year, April 1 to March 31), as against a net loss of INR3.93 million on net sales of INR246.27 million for 2006-07. TATA MOTORS: JLR Bridge Loan Refinancing to Be Completed This Week ------------------------------------------------------------------ Vipin V. Nair at Bloomberg News reports that India's Tata Motors Ltd. is expected to complete the refinancing of a bridge loan used to buy its Jaguar and Land Rover luxury units early this week. Debasis Ray told Bloomberg News in a telephone interview on Thursday that Tata Motors is in the "final stages" of rolling over the remaining portion the loan after raising INR42 billion (US$887 million) by selling debt securities. Bloomberg News recalls the company sold the securities on Wednesday to mutual funds, banks, insurance companies and other investors to help repay the US$3 billion bridge loan. The debt securities, which were issued in four tranches with maturities ranging from 23 months to 83 months, are guaranteed by the State Bank of India, Bloomberg News says citing Tata Motors in a statement. On May 13, 2009, the Troubled Company Reporter-Europe, citing The Economic Times, reported that Tata Motors had raised about US$3 billion in bridge loans to acquire luxury carmaker Jaguar Land Rover (JLR) in 2008. The Economic Times stated that while about US$1 billion was repaid through a rights issue, the remaining US$2 billion has to be repaid by June. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 27, 2009, Standard & Poor's Ratings Services lowered its corporate credit rating on India-based automaker Tata Motors Ltd. to 'B+' from 'BB-'. The rating remains on CreditWatch with negative implications, where it was placed on Dec. 12, 2008. At the same time, S&P lowered its issue rating on the company's senior unsecured notes to 'B+' from 'BB-' and also kept the rating on CreditWatch with negative implications. S&P said the rating action follows material deterioration in Tata Motors' cash flows and related metrics on a consolidated basis, derived from an adverse operating environment, which, combined with significantly high debt levels, will affect its credit protection measures beyond those consistent with a 'BB' rating category. VITAL HEALTH: CRISIL Rates INR57.3 Million Long Term Loan at 'BB' ----------------------------------------------------------------- CRISIL has assigned ratings of 'BB/Stable P4' to the bank facilities of Vital Health Care Pvt Ltd (Vital Health Care). INR160.0 Million Cash Credit * BB/Stable (Assigned) INR57.3 Million Long Term Loan BB/Stable (Assigned) INR22.7 Million Proposed Long Term BB/Stable (Assigned) Bank Loan Facility INR60.0 Million Letter of Credit ** P4 (Assigned) *Sublimit for book debts INR60 Million. & Packing Credit INR120 Million. **Sublimit for Buyers Line of Credit INR60 Million. The ratings are constrained by the working capital intensity of the group's operations, its limited track record, and concentration of revenues in a few products. These weaknesses are, however, partly offset by the Vital group's comfortable financial risk profile. CRISIL has consolidated the business and financial profiles of Vital Health Care and Vital Laboratories Pvt Ltd (Vital Labs). This is because the two companies (together referred to herein as the Vital group) have a common set of promoters — Mr. Rajiv Bajaj and family. The Bajaj family has majority stakes (directly or indirectly) and management control in the companies. The companies are also in similar lines of business, have a common management team, and are managed as a single business. The management also intends to merge the two companies at an appropriate time in future. Outlook: Stable CRISIL expects the Vital group to maintain its current financial risk profile, backed by moderate gearing and satisfactory debt protection measures. The outlook may be revised to 'Positive' if the group's financial risk profile improves considerably, on the back of sustained improvement in operating margins and working capital management. Conversely, the outlook may be revised to 'Negative' if the financial risk profile deteriorates due to large, debt-funded capital expenditure. About the Group The Vital group was established in 1998 with the incorporation of Vital Health Care, which was promoted by Mr. Shrigopal Bajaj and family, and supported by the Mehta family. In 2002, the Bajaj family also promoted Vital Labs. The Vital group manufactures and sells bulk drugs. The group's largest active pharmaceutical ingredients (APIs) include hyoscine butyl bromide, digoxin, quinine and artimisinin and their derivatives. For 2007-08 (refers to financial year, April 1 to March 31), the Vital group reported a profit after tax (PAT) of INR 18.5 million on net sales of INR 668.3 million, as against a PAT of INR 11.6 million on net sales of INR 598.7 million for 2006-07. VITAL LABORATORIES: CRISIL Puts 'BB' Rating on INR60MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned ratings of 'BB/Stable/P4' to the bank facilities of Vital Laboratories Pvt Ltd (Vital Labs). INR60.4 Million Long Term Loan BB/Stable (Assigned) INR60.0 Million Cash Credit BB/Stable (Assigned) INR29.6 Million Proposed Long Term BB/Stable (Assigned) Bank Loan Facility INR50.0 Million Packing Credit P4 (Assigned) INR70.0 Million Letter of Credit P4 (Assigned) The ratings are constrained by the working capital intensity of the group's operations, its limited track record, and concentration of revenues in a few products. These weaknesses are, however, partly offset by the Vital group's comfortable financial risk profile. CRISIL has consolidated the business and financial profiles of Vital Labs and Vital Health Care Pvt Ltd (Vital Health Care). This is because the two companies (together referred to herein as the Vital group) have a common set of promoters — Mr. Rajiv Bajaj and family. The Bajaj family has majority stakes (directly or indirectly) and management control in the two companies. The companies are also in similar lines of business, have a common management team, and are managed as a single business. The management also intends to merge the two companies at an appropriate time in future. Outlook: Stable CRISIL expects the Vital group to maintain its current financial risk profile, backed by moderate gearing and satisfactory debt protection measures. The outlook may be revised to 'Positive' if the group's financial risk profile improves considerably, on the back of sustained improvement in operating margins and working capital management. Conversely, the outlook may be revised to 'Negative' if the financial risk profile deteriorates due to large, debt-funded capital expenditure. About the Group The Vital group was established in 1998 with the incorporation of Vital Health Care, which was promoted by Mr. Shrigopal Bajaj and family, and supported by the Mehta family. In 2002, the Bajaj family also promoted Vital Labs. The Vital group manufactures and sells bulk drugs. The group's largest active pharmaceutical ingredients (APIs) include hyoscine butyl bromide, digoxin, quinine and artimisinin and their derivatives. For 2007-08 (refers to financial year, April 1 to March 31), the Vital group reported a profit after tax (PAT) of INR 18.5 million on net sales of INR 668.3 million, as against a PAT of INR 11.6 million on net sales of INR 598.7 million for 2006-07. ================= I N D O N E S I A ================= TELEKOMUNIKASI: Faces Woes on Iran Telecom Stake Acquisition ------------------------------------------------------------ PT Telekomunikasi Indonesia's (Telkom) plan to acquire a 30 to 50 percent stake in the Telecommunication Company of Iran (Iran Telecom) appear to have been thwarted by hostile Iran-United States relations and stiff competition from Chinese and Russian companies, Jakarta Globe reports citing some company officials. The report, citing Telkom's president director Rinaldi Firmansyah, says that the risk management factors were high as Iran barred US- based shareholders to participate in the tender scheme. Telkom shares are held by several US pension funds, the report discloses. If the investment went forward, there is a strong possibility that Telkom's US shareholders would be forced to sell their holdings, the report adds citing Telkom's vice president for investor relations Heri Supriyadi. On the other hand, Telkom is facing a strong competition for the stake acquisition as the Iranian company has since decided to put the stake up for tenders, drawing the attention of aggressive Chinese and Russian telecoms, the report recounts citing a high- level government official who is familiar with the matter but who requested not to be named. The acquisition plan also appears to have been stalled by Iranian politics, with the presidential election in June, the news agency noted. "Telkom now has to gauge its risk, and [the deal] is likely not going to happen", the report quoted a source as saying. About PT Telkom Indonesia Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. * * * P.T. Telekomunikasi Indonesia Tbk continues to carry 'BB' Long- term foreign and local currency Issuer Default ratings from Fitch Ratings with stable outlook. The ratings were affirmed by Fitch in November 2008. ========= J A P A N ========= PEGASUS FUNDING: S&P Affirms 'B' Rating on Class B of Notes ----------------------------------------------------------- Standard & Poor's Ratings Services kept its ratings on Pegasus Funding's class A1, A2, and class B asset-backed loans, issued in September 2006, on CreditWatch with negative implications. On Feb. 24, 2009, Standard & Poor's placed its ratings on the class A1, A2, and class B ABLs on CreditWatch with negative implications, reflecting increasing risks of negative impact on servicing activities from the civil rehabilitation proceedings commenced by the servicer, thus delaying collection from collateral assets or recovery from the sale of collateral real estate. (In February 2009, the servicer filed for commencement of civil rehabilitation proceedings, which were eventually ordered by the court to commence as bankruptcy proceedings.) The transaction's relevant parties are currently formulating a new servicing structure, including the sale plan for the collateral real estate, which will outline the targeted timing and the amount of recoveries from the collateral real estate sale. The new servicer will start servicing activities according to the sale plan once it is approved by the relevant parties. Currently, due to the low amount of collection from collateral assets and a delay in the sale of collateral real estate, the liquidity reserves are being drawn down to cover interest payments on the ABLs, and therefore, the liquidity reserve amount has fallen below the required amount. There is still a certain amount of liquidity reserves that can cover interest payments for a certain period even if there is a stall in collection or recovery from the sale of collateral real estate. Nevertheless, Standard & Poor's believes that liquidity risk or interest payment delays in this transaction will increase if the liquidity reserves are further drawn down to cover interest payment shortfalls and if the reserve amount continues to fall below the required amount. Standard & Poor's kept the ratings on Pegasus Funding's class A1, A2, and class B on CreditWatch with negative implications because S&P need to consider: 1) the sale plan's content, including the timing and the amount of recoveries from the collateral real estate sale, as well as whether the sale plan would soon be approved by the transaction's relevant parties; 2) the execution of servicing activities under the new servicing structure; and 3) the amount of liquidity reserves. Standard & Poor's will resolve the CreditWatch listings after monitoring the status of the aforementioned three factors and their impact on the ratings. A greater than one-notch downgrade may be possible, depending on the degree of impact that these factors may have on the transaction. The ratings address the full and timely payment of interest and the full and timely payment of principal of the ABLs by December 2014. Ratings On Creditwatch Negative Pegasus Funding JPY120 billion total extendable amount due December 2014 Class To From Initial Issue Amount ----- -- ---- -------------------- Class A1 BBB-/Watch Neg BBB-/Watch Neg JPY40.0 bil. A2 BBB-/Watch Neg BBB-/Watch Neg JPY51.9 bil. Class B B/Watch Neg B/Watch Neg JPY28.1 bil. Issue date Sept. 29, 2006. SONY CORP: To Slash Number of Suppliers by 50% ----------------------------------------------- Sony Corp will cut the number of its suppliers by 50 percent in the next two years and aims to slash procurement costs by 20 percent this year, in an effort to turn around business amid mounting losses, Reuters reports. According to the report, Sony spokeswoman Mami Imada said the company plans to cut its suppliers to about 1,200 from the current 2,500 by March 2011. It will cut costs by increasing the volume of parts and materials purchased from each supplier, the report notes. Reuters says the consolidation of suppliers will include video game subsidiary Sony Computer Entertainment Inc, which has enjoyed considerable freedom in purchasing supplies. As reported in the Troubled Company Reporter-Asia Pacific on May 18, 2009, Bloomberg News said Sony Corp.'s net loss may widen to JPY120 billion (US$1.26 billion) in the 12 months ending March 31, from a JPY98.9 billion deficit a year earlier. The company projected its operating loss may more than halve to JPY110 billion and sales may drop 5.6 percent to JPY7.3 trillion, Bloomberg News related. In December, Sony said it has embarked on a series of measures to strengthen its corporate structure and bolster profitability across the Sony Group. These measures include review of investment plan; realignment of manufacturing sites; and rorkforce reallocation and headcount reduction. Sony plans to reduce the total number of manufacturing sites by approximately 10%, from the current total of 57, by March 31, 2010. Sony also plans to reduce headcount in the electronics business worldwide by approximately 8,000, out of approximately 160,000 as of September 30, 2008. At the same time, Sony plans to reduce headcount in its seasonal and temporary workforces. Japan-based Sony Corporation (TYO:6758) -- http://www.sony.co.jp/ -- is the ultimate parent company of the Sony Group. The company is primarily focused on Electronics, such as audiovisual/ information technology products & components; Game, such as PlayStation; Entertainment, such as motion pictures and music, and Financial Services, such as insurance and banking sectors. It has five segments: Electronics, Games, Pictures, Financial Services and All Other. In the Electronics segment, it develops, designs, manufactures and sells various kinds of electronic equipment, instruments and devices for consumer and professional markets. In the Games segment, Sony Computer Entertainment Inc. (SCEI) develops, produces, markets and distributes PlayStation Portable (PSP), PlayStation 2 and the PLAYSTATION 3 computer entertainment systems. In the Entertainment segment, operations encompass motion picture, television and home entertainment production, acquisition and distribution; television broadcasting, and digital content creation. ========= K O R E A ========= SSANGYONG MOTOR: Court Approves Restructuring Plan -------------------------------------------------- A South Korean court approved on Friday, May 22, Ssangyong Motor Co's restructuring plan, The Auto Channel reports. The report says the court confirmed a recent Samil PricewaterhouseCoopers assessment that the manufacturer had a greater value as a going concern than its liquidated value, and ordered Ssangyong to submit its full restructuring plan by mid- September. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 12, 2009, the International Herald Tribune said Ssangyong filed for receivership with a Seoul district court in a bid to stave off a complete collapse. The Tribune related that the decision to file for receivership, which is similar to bankruptcy protection in the United States, came a day after the Ssangyong board met in Shanghai. "After our talks with the banks failed to produce an agreement, it became inevitable to file for court receivership to ease the critical cash flow problem," the company said in a statement obtained by the Tribune. On Feb. 6, 2009, the TCR-AP, citing the International Herald Tribune, reported that court spokesman Hong Jun-ho said the Seoul Central District Court accepted Ssangyong's application to rehabilitate under court protection. Mr. Hong said the court named former Hyundai Motor Co. executive Lee Yoo-il and Ssangyong executive Park Young-tae to run the automaker, the Tribune related. Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd. -- http://www.smotor.com/-- is a manufacturer of automobiles primarily engaged in production of sports utility vehicles (SUVs) and recreational vehicles (RVs). The company's production is grouped into four lines: SUVs under brand names REXTON, KYRON and ACTYON; sports utility trucks (SUTs) under the brand name ACTYON Sports; passenger cars under brand name Chairman, and multi- purpose vehicles (MPVs) under the brand name Rodius. It also provides automobile parts such as coolers, diesel engines and others. SSANGYONG MOTOR: Threatens to Close Plant if Strike Goes On ----------------------------------------------------------- Ssangyong Motor Co. is threatening plant closure as unionized workers staged full strike against massive job-cut plan, the Chosul Ilbo reports. The report, citing Ssangyong Motor in a statement, says restructuring is "unavoidable" for the company's revival. Ssangyong threatened to close the plant if the union continues to take illegal action, the report states. According to the report, industry experts said the chances are slim if the strike continues, since both court and creditors regard personnel restructuring as the primary precondition for the company's survival. The Troubled Company Reporter-Asia Pacific, citing Yonhap News Agency, reported on May 22, 2009, that unionized workers at SsangyongMotor Co. launched a full strike against the company's massive job-cut plan. According to the news agency, the work stoppage came a day before a bankruptcy court in Seoul held its first meeting with creditors of Ssangyong to discuss the company's restructuring plan. As reported in the TCR-AP on April 8, 2009, The Chosun Ilbo said Ssangyong planned to cut some 2,800 employees or 40 percent of its entire workforce in a bid to revive the company. About Ssangyong Motor Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd. -- http://www.smotor.com/ -- is a manufacturer of automobiles primarily engaged in production of sports utility vehicles (SUVs) and recreational vehicles (RVs). The company's production is grouped into four lines: SUVs under brand names REXTON, KYRON and ACTYON; sports utility trucks (SUTs) under the brand name ACTYON Sports; passenger cars under brand name Chairman, and multi-purpose vehicles (MPVs) under the brand name Rodius. It also provides automobile parts such as coolers, diesel engines and others. * * * As reported in Troubled Company Reporter-Asia Pacific on Jan. 12, 2009, the International Herald Tribune said Ssangyong filed for receivership with a Seoul district court in a bid to stave off a complete collapse. The Tribune related that the decision to file for receivership, which is similar to bankruptcy protection in the United States, came a day after the Ssangyong board met in Shanghai. "After our talks with the banks failed to produce an agreement, it became inevitable to file for court receivership to ease the critical cash flow problem," the company said in a statement obtained by the Tribune. On Feb. 6, 2009, the TCR-AP, citing the International Herald Tribune, reported that court spokesman Hong Jun-ho said the Seoul Central District Court accepted Ssangyong's application to rehabilitate under court protection. Mr. Hong said the court named former Hyundai Motor Co. executive Lee Yoo-il and Ssangyong executive Park Young-tae to run the automaker, the Tribune related. ==================== N E W Z E A L A N D ==================== AUSTRAL PACIFIC: Infratil Incurs NZ$12.1-Mln Impairment Losses -------------------------------------------------------------- Infratil Ltd has written off a total of NZ$12.1 million on the investment in Austral Pacific Energy, since buying its initial 11 percent stake in 2005, The National Business Review reports citing Infratil executive Tim Brown. According to the report, Infratil marked a NZ$7.1 million impairment loss on the investment in its financial 2008 accounts and another NZ$5 million in its just released 2009 result. "The best we can say of that unfortunate investment is that we didn't support their last few capital raisings, so while a bad outcome it could have been worse," Mr. Brown told NBR. The report relates that Infratil bought its original stake of 2.45 million shares for NZ$8.84 million and increased its holding to nearly 20 percent after converting a further 1.2 million warrants at NZ$4.29 a piece. However, NBR states, Infratil's holding was diluted back to 13.5%. after a series of share placements that it did not take part in. Meanwhile, Austral Pacific disclosed that company directors Thompson Jewell and Douglas Ellenor have resigned from the board of directors of the company, Mr. Jewell with effect from May 18, 2009, and Dr. Ellenor with effect from May 12, 2009. The board of directors now comprises Peter Hill, David Newman, Peter Hazledine and Bernhard Zinkhofer. About Infratil Infratil Limited (NZE:IFT) -- http://www.infratil.com-- is a New Zealand-based infrastructure investor. The Company provides energy (renewable and waste-derived electricity) airports and public transport. The Company owns infrastructure investments in Europe, the United Kingdom, Australia and New Zealand, and operates in four areas: investment in infrastructure and utility companies, airport, transport and energy operations. In January 2007, 51% of Perth Energy Pty Ltd was acquired by the Company. In April 2007, the Company acquired Victoria Electricity. About Austral Pacific Based in Wellington, New Zealand, Austral Pacific Energy Ltd. (CA:APX) -- http://www.austral-pacific.com/-- is an oil exploration and production company. Austral Pacific shares are traded in the New Zealand and Toronto stock exchanges. * * * As reported in the Troubled Company Reporter-Asia Pacific, Austral Pacific Energy was placed in receivership on May 1, 2009. The company said it agreed with the group's senior secured creditor, Investec Bank (Australia) Limited, to the appointment of receivers to Austral Pacific Energy Ltd., the publicly traded Canadian corporation, and two of its New Zealand subsidiaries, Austral Pacific Energy (NZ) Limited and Totara Energy Limited. The appointed receivers are Michael Ryan and Ian Francis of Taylor Woodings of Perth and Paul Sargison of Gerry Rea Partners of Auckland. Investec is owed approximately US$16.8 million, which amount is now due for payment due to the expiry of the previously announced standstill arrangements. WILLIAM HILL: Placed in Receivership ------------------------------------ William Hill Winery Ltd, one of Central Otago's pioneering vineyards, was placed in receivership last week, the Otago Daily Times reports. The report says Wanaka accountant Alistair King and Invercargill chartered accountant Peter Heenan, of WHK Cook Adam Ward Wilson, have been appointed as receivers and managers of the company in respect of all rights, titles and interests in the undertaking, property, assets and revenues of the winery. According to the report, Mr. King said the receivers had secured all of William Hill's assets and were starting an assessment of the company's financial position. In the meantime, Mr. King said, no employees of William Hill had lost their jobs as the company continued to trade, the Otago Daily relates. William Hill -- http://www.williamhill.co.nz/-- was established in 1973 when founders Bill and Gillian Grant planted the first pinot noir vines. Its first commercial production was in 1987. William Hill Wine's are marketed worldwide under the brand name Shaky Bridge. XERO LIMITED: Raises NZ$5.8 Million Through Share Purchase Plan --------------------------------------------------------------- The National Business Review reports that Xero Limited raised NZ$5.8 million in a share purchase plan that closed on May 18. The company, as cited by the report, said 70 percent of shareholders opted to buy up to NZ$5,000 worth of shares at a purchase price of NZ$0.90 cents. The report says the plan took to NZ$29 million the amount of capital raised recently by Xero, which last month reported raising NZ$23.2 million through a strategic placement. Xero Limited (NZE:XRO) -- http://www.xero.com/-- formerly Xero Live Limited, is a New Zealand-based company. The Company is principally engaged in the provision of a platform for online accounting and business services to small and medium sized enterprises. The Company's subsidiaries include Xero Live Limited, Xero Live Pty Limited and Xero Trustee Limited. * * * Xero Limited reported a net loss of NZ$6.75 million for the year ended March 31, 2009, its third consecutive annual loss. In 2008, the company posted a net loss of NZ$4.31 million. Xero reported a NZ$1.05 million net loss for 2007. ================= S I N G A P O R E ================= COB TECHNOLOGY: Court Enters Wind-Up Order ------------------------------------------ On May 15, 2009, the High Court of Singapore entered an order to wind up the operations of COB Technology Pte Ltd. The company's liquidator is: Official Receiver Insolvency & Public Trustee’s Office The URA Centre, East Wing 45 Maxwell Road, #05-11 & #06-11 Singapore 069118 * SINGAPORE: MTI Forecasts GDP Growth at -9.0% to -6.0% in 2009 --------------------------------------------------------------- Singapore's Ministry of Trade and Industry said that it will maintain the GDP growth forecast for 2009 at -9.0 to -6.0 percent. The economy contracted by 14.6 percent on a quarter-on-quarter, seasonally adjusted annualised basis in first quarter of 2009, compared to the decline of 16.4 percent recorded in the last quarter of 2008. In year-on-year terms, real GDP contracted by 10.1 percent in the first quarter of 2009. Except for construction and financial services, all major sectors of the economy experienced further quarter-on-quarter declines. Weighed down by continued weakness in electronics, biomedical manufacturing, precision engineering and chemicals, manufacturing contracted by 26.6 percent, worse than the previous quarter’s contraction of 21.3 percent. The services producing industries contracted by 10.3 percent, less than the 15.0 percent decline in the previous quarter. Financial services provided a small boost for the services sector in the first quarter, but the rest of the services sector registered large declines, mainly because of the collapse in global trade in early 2009. Tourist arrivals have also slumped, affecting the tourism-related segments of the services sector. The preliminary estimates for the first quarter present a less pessimistic picture of the economy compared to the advance estimates released on April 14. 2009. In particular, the advance estimates projected that the Singapore GDP would contract by 19.7 percent in quarter-on-quarter terms and 11.5 percent in year- on-year terms. The changes in the preliminary estimates reflect the impact of revisions in output of the manufacturing sector and the performance of the financial sector. MTI last revised the 2009 GDP growth forecast on April 14, 2009, based on the advance estimates for the first quarter of 2009. Since then, apart from the outbreak of Influenza A(H1N1), no new major systemic risks to global economic growth have emerged. The sharp collapse in global trade in late 2008 and early 2009 has tapered off. While trade is still expected to be weak for the rest of 2009, further declines of the magnitude seen earlier this year seem unlikely. CPI inflation has slowed significantly to 2.1 percent in the first quarter of 2009, down from 5.4 percent in the fourth quarter of 2008. The slowdown in CPI inflation falls within expectations and has mainly been due to a downward correction of global commodity prices from the peaks in 2008. Domestic cost pressures have started to ease in line with the recession and lower commodity prices. These trends are expected to persist and CPI inflation is estimated to continue to fall in the coming months. For 2009, the forecast for CPI inflation is maintained at -1.0 to 0 percent. ********* 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 ***