/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090529.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 Friday, May 29, 2009, Vol. 12, No. 105 Headlines A U S T R A L I A CENTRO PROPERTIES: Launches Cross-Claim Against PwC FAIRFAX MEDIA: Buys Back AU$32 Million of 2011 Notes GREAT SOUTHERN: KMPG Under Probe Over Project Transform Deal SUNCORP-METWAY: Loss on Bad Assets Totals AU$136 Million C H I N A AES CHINA: Declining Financial Profile Prompts Moody's Junk Rating SINO-FOREST CORP: Share Placement Won't Affect Moody's Ba2 Rating H O N G K O N G ASIA ALUMINUM: Court to Hear Wind-Up Petition on July 8 BEST CONCORD: Members' Final Meeting Set for June 24 ETS TESTING: Creditors' Proofs of Debt Due on June 23 GROOVER LIMITED: Members' Final Meeting Set for June 24 HESON ENTERPRISE: Creditors' Meeting Set for June 1 JOHNSTONE LIMITED: Members' Final Meeting Set for June 23 KIN YUEN: Releases Kwan and Man as Liquidators MILLION CHEER: Members' Final Meeting Set for June 24 OMIZ INDUSTRIAL: Court to Hear Wind-Up Petition on July 8 OPTROM (HONG KONG): Court to Hear Wind-Up Petition on July 22 PETER CHAN: Members' and Creditors' Meeting Set for June 26 POWER SOLUTIONS: Court to Hear Wind-Up Petition on July 8 SMART GOOD: Creditors' Meeting Set for Today STYLATRADE INTERNATIONAL: Placed Under Voluntary Wind-Up WAI WAH: Court to Hear Wind-Up Petition on June 3 WORLD FLOWER: Court to Hear Wind-Up Petition on July 29 I N D I A ALCHEMIST HOSPITALS: Fitch Assigns 'BB-' National Long-Term Rating BRAND ALLOYS: CRISIL Reaffirms 'BB' Rating on INR56 Mln Term Loans EVEREADY SPINNING: CRISIL Rates INR110.00 Mln Cash Credit at 'BB+' HALDIA STEELS: CRISIL Reaffirms 'BB' Ratings on Various Bank Loans HI-TECH POWER: CRISIL Places 'BB+' Rating on INR25.7 Mln Term Loan ISPAT DAMODAR: CRISIL Reaffirms 'BB' Rating on INR1.80MM Term Loan JET AIRWAYS: Plans to Cut Domestic Flights by 10% in June LAHOTI OVERSEAS: Strained Liquidity Cues CRISIL 'P4' Ratings MANI SPINNING: CRISIL Assigns 'BB+' Rating on INR550MM Cash Credit SATYAM COMPUTER: Four Tech Mahindra Nominees Join Company's Board TATA MOTORS: Completes Refinancing of US$3 Billion JLR Bridge Loan I N D O N E S I A ANEKA TAMBANG: To Reduce Capex in 2009 Due to Economic Conditions GARUDA INDONESIA: Inks Debt Restructuring Deal with Some Creditors J A P A N BANK OF IKEDA: Fitch Affirms 'BB+' Long-Term Issuer Default Rating JAPAN AIRLINES: Inks Deal W/ Mitsui to Jointly Offer Cargo Service *S&P Cuts Ratings on 29 Tranches From 21 Japanese CDO Deals L E B A N O N BANK AUDI: Moody's Puts Currency Deposit Ratings on Review BLOM BANK: Moody's Puts Currency Deposit Ratings on Review BYBLOS BANK: Moody's Puts Currency Deposit Ratings on Review M A L A Y S I A HO HUP: Indera Files Wind Up Petition Against Unit PECD BERHAD: Unit's Wind-up Petition Hearing Moved to September 3 N E W Z E A L A N D BLIS TECHNOLOGIES: Posts NZ$488,000 Annual Net Loss FISHER & PAYKEL: Sells Stake to Haier, Gets New Bank Funding P H I L I P P I N E S GOTESCO LAND: SEC Revokes Licence Due to Non-Submission of Reports S I N G A P O R E DMC CHEMICALS: Court to Hear Wind-Up Petition on June 5 KIAN SENG: Creditors' Proofs of Debt Due on June 15 TINCEL PROPERTIES: Creditors' Proofs of Debt Due on June 25 VIRTUAL INNOVATIONS: Court to Hear Wind-Up Petition on June 5 T H A I L A N D TMB BANK: Moody's Reviews Debt & Deposit Ratings for Poss. Cut V I E T N A M ASIA COMMERCIAL: Moody's Puts Low-B Ratings on Review BIDV: Moody's Puts Low-B Ratings on Review for Poss. Downgrade TECHCOMBANK: Moody's Puts Currency Deposit Ratings on Review VIETNAM INTERNATIONAL: Moody's Places 'D-' BFSR on Review X X X X X X X X * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= CENTRO PROPERTIES: Launches Cross-Claim Against PwC --------------------------------------------------- Centro Properties Group has launched a cross-claim against PricewaterhouseCoopers in relation to the class action claims brought by Maurice Blackburn and Slater & Gordon. The Australian reports that Centro officially launched its cross- claim in the Federal Court on May 27, alleging PwC should assume part or all of the blame over claims it failed to disclose the debt that led to its near collapse. The Federal Court gave Centro until today, May 29, to serve a cost claim on PwC, which must now take part in a mediation scheduled for July 17, the report says. As reported by the Class Action Reporter on Aug. 27, 2008, Centro Properties executives appeared at a Melbourne Federal Court directions hearing on Aug. 25, 2008. Preliminary hearings for Maurice Blackburn's "opt in" claim and Slater & Gordon's traditional claim will be heard before Justice Ray Finkelstein as part of a billion-dollar-plus joint class action suit. Investors represented by Slater & Gordon and Maurice Blackburn have accused Centro of being involved in misleading and deceptive conduct, failing to adhere to accounting standards, breaching continuous disclosure obligations and deliberately misclassifying its debt position. The law firm Slater & Gordon lodged a class action suit in the Federal Court in Melbourne specifically against: -- Centro Properties Ltd, -- CPT Manager Ltd, the responsible entity for Centro Property Trust, -- Centro Retail Ltd, and -- Centro MCS Manager Ltd, the responsible entity for the Centro Retail Trust on behalf of Nicholas Vlachos, Monatex Pty Ltd and Ramon Franco (Class Action Reporter, May 27, 2008). The applicants are representative parties for persons who were not group members in the class action claim commenced against Centro Properties Ltd and CPT Manager Ltd by Maurice Blackburn on May 9, 2008, also in the Federal Court in Melbourne. Maurice Blackburn filed a shareholder class action suit against the property fund, with a claim value of at least AU$100 million, on behalf of litigation funder IMF Australia Ltd (Class Action Reporter, May 14, 2008). According to IMF, the claims relate to alleged misleading and deceptive conduct and breaches by Centro of its continuous disclosure obligations between August 9, 2007, and February 15, 2008. Maurice Blackburn's shareholder claim seek compensation over the price paid for securities inflated by Centro's alleged failure to properly disclose its circumstances. About Centro Properties Centro Properties Group (ASX:CNP)-- http://www.centro.com.au/-- is a retail investment organization specializing in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management of US$24.9 billion. * * * The Troubled Company Reporter-Asia Pacific reported on Jan. 4, 2008, that Standard & Poor's Ratings Services lowered its issuer credit, senior-unsecured debt and preferred stock ratings on Centro Properties Group to 'CCC+' with negative implications reflecting the potential of the group's assets to be sold in softening market conditions, particularly in the U.S. On Jan. 16, 2009, the TCR-AP reported that Centro Properties obtained a three year extension on its AU$3.9 billion of the senior syndicated debt facility. It also obtained extension of the debt facilities within Super LLC (Centro's US joint venture investment with Centro Retail Trust (CER) and CMCS 40). FAIRFAX MEDIA: Buys Back AU$32 Million of 2011 Notes ---------------------------------------------------- Fairfax Media has bought back AU$32.3 million of medium-term notes that mature in 2011, The Australian reports citing Dow Jones Newswire. Company treasurer Dale Bridle, according to the report, said the Fairfax Media buy-back was priced at 84 cents in the dollar. As reported in the Troubled Company Reporter-Asia Pacific on May 21, 2009, Fairfax Media Limited said that it is considering a buy back of its AU$200 million fixed rate notes due June 27, 2011. The company said it is under no obligation to buy back any of the 2011 AU$MTNs and will have the sole discretion in determining the quantum and price of any 2011 AU$MTNs to be bought back. Any 2011 AU$MTNs which are not repurchased as part of this process will, subject to their terms and conditions, be redeemed on their existing maturity of June 27, 2011. Westpac Banking Corporation is managing the buy back offer process. 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. About Fairfax Media 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: KMPG Under Probe Over Project Transform Deal ------------------------------------------------------------ The Australian reports that the administrators of Great Southern Limited will launch an investigation into a controversial capital raising exercise completed by Great Southern in January, just four months before it collapsed. The Australian says that under the deal, hundred of scheme investors handed the company AU$88 million worth of cattle in return for now worthless Great Southern shares. Ferrier Hodgson administrator Martin Jones, according to the Australian, said the administrators will also examine KMPG's role in the deal. KMPG had prepared an "independent expert's report" supporting the deal called Project Transform. The Herald Sun says that KPMG endorsed the deal last October and stood by it in a January 12 report, despite a plunge in Great Southern's share price from 43.5 to 17.5 and "inherent uncertainty regarding Great Southern's ability to continue as a going concern in its current form". Mr. Jones said Project Transform was "clearly an issue that needs to be looked at" and the actions of all parties involved, including KPMG, would be examined, the Sun relates. As reported in the Troubled Company Reporter-Asia Pacific on May 19, 2009, 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. On May 20, 2009, the TCR-AP, citing the Sydney Morning Herald reported that McGrathNicol had been appointed receivers to the company and certain of its subsidiaries by a security trustee on behalf of a group of secured creditors. Citing figures released by the administrators, the Sydney Morning Herald discloses that as of April 30, 2009, Great Southern had total liabilities of AU$996.4 million, including loans and borrowings of AU$833.9 million. The loans and borrowings included AU$375 million from the groups banks. The secured creditors include ANZ, Commonwealth Bank and BankWest. Great Southern manages about 43,000 investors through 45 managed investment schemes. The group 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 Based in West Perth, Australia, 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. SUNCORP-METWAY: Loss on Bad Assets Totals AU$136 Million -------------------------------------------------------- ABC News reports that Suncorp-Metway Limited has made a loss on bad assets of AU$136 million in the March quarter, with total bad assets now at AU$1.2 billion. According to ABC News, the bank said its bottom line has been hit by falling property values and bad debts, but, its capital position has improved, with its capital adequacy ratio rising. Suncorp-Metway's capital adequacy ratio rises to 13.24 percent, and its Tier 1 ratio increasing to 11.39 percent, the Herald Sun relates. Suncorp is also considering creating a listed holding company to own its banking, general insurance and wealth management subsidiaries, ABC News adds. Meanwhile, Suncorp said it has received a combined total of approximately 4,500 claims across all of its personal and commercial insurance brands as a result of severe weather in south-east Queensland and nothern New South Wales. Suncorp companies, including Vero, GIO, Suncorp, AAMI and Apia, have the number of claims staff, assessors and other support staff to help process claims as quickly as possible, Suncorp said in a statement. About Suncorp Brisbane, Australia-based Suncorp-Metway Ltd. -- http://www.suncorp-metway.com.au/-- is engaged in the business of banking, insurance, investment and superannuation and focuses on retail customers and small to medium businesses. The Company�s banking division provides a range of banking services including loans, savings and investment accounts, credit cards, foreign currency services for retail and small- to medium-business customers. It includes general insurance group, which offers a range of covers across Personal, Commercial, Workers Compensation and CTP insurance. Wealth Management covers life, super and managed investments. It also includes the funds management activities of the Company. Suncorp Metway Investment Management Limited (SMIML) is a wholly owned subsidiary of Suncorp-Metway Ltd. It is responsible for wholesale investment management of the Suncorp Group. On April 15, 2008, the Company acquired Prophet Financial Advice Pty Ltd. On March 20, 2007, it acquired Promina Group Limited. * * * As reported in the Troubled Company Reporter-Asia Pacific on Feb. 11, 2009, Fitch Ratings affirmed and removed from Rating Watch Evolving Suncorp-Metway Limited's and Suncorp Metway Insurance Limited's ratings. These rating actions have been taken: -- Individual rating: affirmed at 'B', removed from RWE -- Support Rating Floor affirmed at 'BB+'; removed from RWE At the same time, Fitch placed Suncorp's 'A+' Long- term Issuer Default Rating on Negative Outlook, and SMIL's Insurer Financial Strength Rating on Stable Outlook. The actions follow Suncorp's announcement that there has been a significant increase in bad debts, which will affect H109 profits. With signs that the Queensland and Australian economies are facing significant challenges, risks to asset quality are clearly on the downside. ========= C H I N A ========= AES CHINA: Declining Financial Profile Prompts Moody's Junk Rating ------------------------------------------------------------------ Moody's Investors Service has downgraded to Caa1 from B1 the senior unsecured bond rating of AES China Generating Company Limited. The rating outlook remains negative. "The downgrade was prompted by Moody's expectation of a material deterioration in AES Chigen's financial profile, as well as a heightened level of refinancing risk for the company's US$103 million bond," says Jennifer Wong, a Moody's AVP/Analyst. "In addition, AES Chigen's joint-venture projects' inability to pass through high fuel costs in FY2008 is expected to significantly impact dividend contributions to the company in FY2009, and result in a significant deterioration in its financial performance," says Wong, also Moody's lead analyst for the company. In particular, dividends from the Yangcheng project, which over 80% of AES Chigen's cash flow and capacity, are expected to only equal one third of its total dividend receipts in FY2009, down sharply from FY2008. "Accordingly, Moody's expects that the company's total operational cash inflow from joint-venture projects in FY2009 will be insufficient to service its interest payments, meaning it will need to rely on cash on hand as well as the cash generated from the Hefei liquidation to meet these obligations," says Wong. Although the disposal of the Jiaozuo Aluminum Power Plant has been completed, with the principal amount of the outstanding bonds reduced from US$175 million to US$103 million in January 2009, AES Chigen continues to face large refinancing requirements with its bond maturing on June 26, 2010. Moody's is concerned over the company's lack of concrete refinancing plans, particularly in light of the current state of the credit environment and the limited availability of refinancing options, and also by the company's reliance on cash flow from one minority-owned project, and over which it has no control. The negative outlook continues to reflect Moody's concerns over the company's refinancing risks amid the challenging economic and operating environments. Upward rating pressure on AES Chigen's rating is unlikely in the near term, given the current negative outlook. However, upward pressure could result from the establishment of an adequate and appropriate refinancing plan for its US$103 million bond. On the other hand, the rating will be further downgraded if AES Chigen fails to refinance the bond. Moody's last rating action with regard to AES Chigen occurred on August 26, 2008, when the outlook of the company's B1 senior unsecured bond rating was changed to negative from stable. AES Chigen's ratings were assigned by evaluating factors believed to be relevant to its credit profile, such as i) the business risk and competitive position of AES versus others within its industry or sector, ii) the capital structure and financial risk of AES, iii) the projected performance of AES over the near to intermediate term, and iv) AES' history of achieving consistent operating performances and meeting financial plan goals. These attributes were compared against those of other issuers both within and outside of AES Chigen's core peer group; and AES Chigen's ratings are believed to be comparable to ratings assigned to other issuers of similar credit risk. AES China Generating Company Limited is primarily a holding company engaged in the development, construction, operation and ownership of electric power generating facilities in China through its participation in joint-ventures. The company owns interests in five operating power plants with an aggregate capacity of approximately 2,592MW, of which 736MW are attributable to its stakes. SINO-FOREST CORP: Share Placement Won't Affect Moody's Ba2 Rating ----------------------------------------------------------------- Moody's Investors Service says that the recent share placement announced by Sino-Forest Corporation will have no immediate impact on the company's Ba2 corporate family and senior unsecured bond ratings. The outlook for the ratings remains stable. "The C$330 million share placement will further strengthen Sino Forest's equity base, and is consistent with the company's prudent financial policy of funding acquisitions and capex through a mixture of equity and debt," says Wonnie Chu, a Moody's Analyst. The net proceeds of the offering will be used primarily for the acquisition of commercial plantation forests in Jiangxi Province in the People's Republic of China, and for general corporate purposes. "While the share placement will mildly improve Sino-Forest's balance sheet leverage, Moody's notes that Sino-Forest's may raise additional debt to fund its expansion, including the potential investment in Mandra Forestry," adds Chu, also Moody's lead analyst for the company. Positive ratings drivers remain the company's ability to generate positive free cash flow and build on its track record for delivering on its business plan and growing its plantation base, while at the same time maintaining a strong financial profile. On the other hand, the ratings will come under downward pressure if: 1) the company fails to achieve its business plan and cash flow declines due to an inability to secure enough plantations; 2) its overall business risk rises substantially due to material acquisitions; and/or 3) changes occur in China's regulatory regime which fundamentally alter operating conditions with a consequence reduction in profitability. Credit metrics that Moody's would consider for a downgrade include retained cash flow/Adjusted Debt of below 15-20% and EBIT/Interest of less than 2.5-3.0x. The last rating action with regard to Sino-Forest was taken on 24th July, 2008, when the company's rating was affirmed with a stable outlook following its US$345m convertible bond issuance. Sino-Forest's ratings have been assigned based on factors that Moody's believe are relevant to the risk profile of Sino-Forest, such as the company's (i) business risk and competitive position compared with other firms within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside Sino-Forest's core industry; Moody's believes the company's ratings are comparable with those of other issuers of similar credit risk. Sino-Forest Corporation is a holding company listed in Toronto, Canada. The company is engaged in forestry plantation activities in China as well as in the sale of timber, wood logs and other wood products in China. ================ H O N G K O N G ================ ASIA ALUMINUM: Court to Hear Wind-Up Petition on July 8 ------------------------------------------------------- A petition to have Asia Aluminum Management Limited's operations wound up will be heard before the High Court of Hong Kong on July 8, 2009, at 9:30 a.m. Asia Aluminum Holdings Limited filed the petition against the company on April 27, 2009. The Petitioner's solicitors are: Wilkinson & Grist Prince's Building, 6th Floor 10 Chater Road Hong Kong Telephone: 2524-6011 Facsimile: 2520-2090 BEST CONCORD: Members' Final Meeting Set for June 24 ---------------------------------------------------- The members of Best Concord Limited will hold their final general meeting on June 24, 2009, at 10:00 a.m., at 13A, Tak Lee Commercial Building, 113-117 Wanchai Road, in Wanchai, Hong Kong. At the meeting, Ng Kam Chiu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ETS TESTING: Creditors' Proofs of Debt Due on June 23 ----------------------------------------------------- The creditors of ETS Testing Service Limited are required to file their proofs of debt by June 23, 2009, to be included in the company's dividend distribution. The company's liquidator is: Ko Tak Wing CRE Building, 303 Hennessy Road Wanchai Hong Kong GROOVER LIMITED: Members' Final Meeting Set for June 24 ------------------------------------------------------- The members of Groover Limited will hold their final general meeting on June 24, 2009, at 10:00 a.m., at 13A, Tak Lee Commercial Building, 113-117 Wanchai Road, in Wanchai, Hong Kong. At the meeting, Ng Kam Chiu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HESON ENTERPRISE: Creditors' Meeting Set for June 1 --------------------------------------------------- The creditors of Heson Enterprise Limited will hold their meeting on June 1, 2009, at 3:00 p.m. for the purposes mentioned in Sections 241, 242, 243, 244 and 255A of the Companies Ordinance. The meeting will be held at the 17th Floor of Ginza Square, 565-567 Nathan Road, in Kowloon, Hong Kong. JOHNSTONE LIMITED: Members' Final Meeting Set for June 23 --------------------------------------------------------- The members of Johnstone Limited will hold their final general meeting on June 23, 2009, at 2:00 p.m., at Office B, 26th Floor of United Centre, in 95 Queensway, Hong Kong. At the meeting, Cheng Mo Kit Katherine, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KIN YUEN: Releases Kwan and Man as Liquidators ---------------------------------------------- On May 7, 2009, Chiang Ping Kwan and Wu Wai Man were released as liquidators of Kin Yuen Construction Company Limited. MILLION CHEER: Members' Final Meeting Set for June 24 ----------------------------------------------------- The members of Million Cheer Limited will hold their final general meeting on June 24, 2009, at 10:00 a.m., at 13A, Tak Lee Commercial Building, 113-117 Wanchai Road, in Wanchai, Hong Kong. At the meeting, Ng Kam Chiu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. OMIZ INDUSTRIAL: Court to Hear Wind-Up Petition on July 8 --------------------------------------------------------- A petition to have Omiz Industrial (Hong Kong) Limited's operations wound up will be heard before the High Court of Hong Kong on July 8, 2009, at 9:30 a.m. Dah Sing Bank, Limited filed the petition against the company on April 21, 2009. The Petitioner's solicitors are: Wilkinson & Grist Prince's Building, 6th Floor 10 Chater Road Hong Kong Telephone: 2524-6011 Facsimile: 2520-2090 OPTROM (HONG KONG): Court to Hear Wind-Up Petition on July 22 ------------------------------------------------------------- A petition to have Optrom (Hong Kong) International Limited's operations wound up will be heard before the High Court of Hong Kong on July 22, 2009, at 9:30 a.m. Yip Kin Tim filed the petition against the company on May 11, 2009. The Petitioner's solicitors are: Cham & Co. Hong Kong Trade Centre, Room 2102 Nos. 164-167 Des Voeux Road Central, Hong Kong PETER CHAN: Members' and Creditors' Meeting Set for June 26 ----------------------------------------------------------- The members and creditors of Peter Chan Secretaries (International) Limited will hold their meeting on June 26, 2009, at 10:00 a.m. and 12:00 noon, respectively, at the 2nd Floor of Caltex House, in 258 Hennessy Road, Hong Kong. At the meeting, Chan Po Fun Peter, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. POWER SOLUTIONS: Court to Hear Wind-Up Petition on July 8 --------------------------------------------------------- A petition to have Power Solutions Asia Pacific Limited's operations wound up will be heard before the High Court of Hong Kong on July 8, 2009, at 9:30 a.m. The Petitioner's solicitor is: Tanner De Witt 1806, Tower Two, Lippo Centre 89 Queensway Hong Kong SMART GOOD: Creditors' Meeting Set for Today -------------------------------------------- The creditors of Smart Good Enterprises Limited will hold their meeting today, May 29, 2009, at 10:30 a.m., to appoint a liquidator and consider further matters voluntary to the creditors' wind-up. The meeting will be held at the Unit D, 6th Floor of Fu Cheong Centre, 5-7 Wong Chuk Yeung Street, Fotan, in New Territories, Hong Kong. STYLATRADE INTERNATIONAL: Placed Under Voluntary Wind-Up -------------------------------------------------------- At an extraordinary general meeting held on May 13, 2009, the shareholders of Stylatrade International Holdings Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Leung Chi Wing Yue Xiu Building Room 3, 8th Floor 160 Lockhart Road, Wan Chai Hong Kong WAI WAH: Court to Hear Wind-Up Petition on June 3 ------------------------------------------------- A petition to have Wai Wah Electronics Limited's operations wound up will be heard before the High Court of Hong Kong on June 3, 2009, at 9:30 a.m. Clifford Chance filed the petition against the company on April 1, 2009. WORLD FLOWER: Court to Hear Wind-Up Petition on July 29 ------------------------------------------------------- A petition to have World Flower Jewellery Limited's operations wound up will be heard before the High Court of Hong Kong on July 29, 2009, at 9:30 a.m. Au Tat Sang filed the petition against the company on May 11, 2009. The Petitioner's solicitors are: Benson Li & Co. Two Chinachem Plaza Unit B, 6th Floor 135 Des Voeux Road, Central Hong Kong ========= I N D I A ========= ALCHEMIST HOSPITALS: Fitch Assigns 'BB-' National Long-Term Rating ------------------------------------------------------------------ Fitch Ratings has assigned India's Alchemist Hospitals Limited a National Long-term rating of 'BB-(ind)' with Stable Outlook. Simultaneously, the agency has assigned rating of 'BB-(ind)' to AHL's bank term loan limits of INR550 million. The ratings reflect the wide range of services provided by AHL, its modern infrastructure and reputable doctors, which together enhance its ability to attract adequate patient volumes, and thus, to improve its cash flows. The ratings are also supported by the relative immunity of the healthcare sector against seasonal and economic factors. The ratings have been notched up by one level to reflect the financial support extended by The Alchemist Group, in the form of approximately INR299 million equity to date and INR253 million unsecured loans (as of March 31, 2009). The ratings are constrained by a lack of track record given its brief operational history after The Alchemist Group acquired it in November 2005. The ratings also reflect significant losses inherited from Kaiser Hospital, which was the original name of AHL before the acquisition. The ratings are also constrained by its stretched financial profile owing to the recently completed debt- funded capex, keen competition from reputable hospitals in the area, geographical concentration risk, the difficulty faced by start-up institutions in retaining quality medical staff, current low occupancy rates and a low revenue base. Fitch also concerned that financial leverage may come under further pressure from plans to expand bed capacity. Demonstrated growth in patient volumes leading to positive operating cash flows and a significant improvement in financial leverage could have positive implications on the ratings. Simultaneously, further deterioration in financial leverage, lower-than-expected patient volume growth and higher-than-expected debt-financed capex could put downward pressure on the ratings. Any indication of weakening financial support from The Alchemist Group, or loss of key personnel could also negatively impact the ratings. The current financial leverage of AHL is high due to the debt- funded capital expenditure and minimal operation till FY08. Total debt for FY08 was INR592.9 million, comprising INR214.93 million bank term loans and INR377.99 million unsecured loans from group companies, whereas the equity on book was INR77.62 million. The company had INR26.16 million as cash and cash equivalents in FY08. Reported revenues were INR3.95 million which excluded capitalized income of INR16.55 million from the hospital. Reported net income was INR0.75 million. Due to the hospital's facilities being under construction, the company had been capitalizing the income and expenses related to its hospital operations up to FY08. AHL is a 108-bed super-specialty hospital based in Panchukula. Originally known as Kaiser Hospital, it was acquired by The Alchemist Group in 2006 with the intention to turn around the loss-making entity. After nearly two years of renovating the hospital, it began operations in September 2008. The flagship company of The Alchemist Group, Alchemist Limited is a publicly listed diversified company with operations in agribusiness, pharmaceuticals & chemicals, and food processing. In FY08, AL generated revenues of INR3079 million with operating EBITDAR and net income of INR309 million and INR105 million respectively. It had INR171 million as cash and cash equivalents, and the financial leverage measured by total adjusted debt net of cash/operating EBITDAR was 3.7x. BRAND ALLOYS: CRISIL Reaffirms 'BB' Rating on INR56 Mln Term Loans ------------------------------------------------------------------ CRISIL's rating on the bank facilities of Brand Alloys Ltd (BAL), a Haldia group company, continue to reflect the Haldia group's constrained financial risk profile due to debt-funded capital expenditure (capex), limited risk management policies, and exposure to risks relating to marginal market share in the steel industry. These weaknesses are mitigated by the benefits that the Haldia group derives from its average forward-integration initiatives. INR40 Million Cash Credit BB/Stable (Reaffirmed) INR56 Million Term Loans BB/Stable (Reaffirmed) INR50 Million Letter of Credit * P4 (Reaffirmed) * Non-fund-based limits are interchangeable between letter of credit and bank guarantee CRISIL has combined the business and financial profiles of BAL, Haldia Steels Ltd (HSL), Ispat Damodar Ltd (IDL), and Sonic Thermal Pvt Ltd (STPL), together referred to as the Haldia group, as part of this rating exercise. This is because these companies have strong operational linkages, and a common management. Outlook: Stable CRISIL expects the Haldia group's profitability to remain strained over the medium term owing to its significant capex plan and the current slowdown in the economy. The Haldia group is expected to remain a small player in the domestic steel industry. The outlook may be revised to 'Positive' if there is substantial improvement in the Haldia group's profitability, or if the group is able to achieve linkages for raw material. Conversely, the outlook may be revised to 'Negative' if the group undertakes large, debt-funded capex, or reports reduced profitability. About Brand Alloys Established in 1994, the Haldia group commenced operations with an ingot manufacturing facility. Thereafter, the group expanded operations by setting up BAL in March 1994 as a steel and engineering unit. Subsequently, the promoters ventured into manufacturing ferro alloys and steel billets along with sponge iron in Durgapur, West Bengal, under HSL. The group also set up Brand Projects Ltd (later renamed as IDL) in April 1996. IDL began operations in December 2006, with sponge iron and steel ingot manufacturing facilities. STPL, incorporated in December 2002, is setting up two submerged electric arc furnaces with capacity of 7.5 megavolt amperes each, for the production of ferro manganese and silico manganese; it is also setting up pelletisation, bracketing, and beneficiation equipment. The Haldia group reported a profit after tax (PAT) of INR111 million on net sales of INR4.1 billion in 2007-08, as against a PAT of INR90 million on net sales of INR2.8 billion in 2006-07. EVEREADY SPINNING: CRISIL Rates INR110.00 Mln Cash Credit at 'BB+' ------------------------------------------------------------------ CRISIL has assigned its ratings of 'BB+/Stable/P4' to the various bank facilities of Eveready Spinning Mills Pvt Ltd (ESMPL), a Eveready group entity. INR72.30 Million Long Term Loan BB+/Stable (Assigned) INR110.00 Million Cash Credit BB+/Stable (Assigned) INR10.00 Million Bank Guarantee P4 (Assigned) The ratings reflect the group's below-average financial risk profile, marked by high gearing, and exposure to risks relating to fluctuations in the prices of raw materials. These weaknesses are, however, partially offset by the group's established presence in the spinning mills industry supported by extensive experience of group's promoters. For arriving at the ratings, CRISIL has combined the financials of ESMPL and Mani Spinning Mills Pvt Ltd (Mani Mills). This is because both ESMPL and Mani Mills (together referred to as the Eveready group) are under common management, are in the same line of business, and there exists fungibilty of funds between the companies. Outlook: Stable CRISIL believes that Eveready group will maintain a comfortable financial risk profile over the medium term backed by steady accruals. The outlook may be revised to 'Positive' if the group's financial risk profile enhances substantially on the back of improvement in gearing and higher profitability. The outlook may be revised to 'Negative' if the group undertakes large, debt- funded capital expenditure, or faces decline in revenues and profitability due to the ongoing economic slowdown. About the Group The Eveready group was established in 1998, when its flagship entity, ESMPL, was set up. ESMPL manufactures cotton yarn of count size ranging from 30s to 40s. The group set up Fisher Spinning Mills Pvt Ltd (Fisher Mills) to manufacture yarn of low count, and Mani Mills with a capacity of 60,000 spindles and 720 rotors to manufacture hosiery yarn. Fisher Mills was merged with Mani Mills in 2006. Eveready group reported a loss of INR103.1 million on a turnover of INR1.78 billion for 2007-08 (refers to financial year, April 1 to March 31), as against a Profit After Tax (PAT) of INR6.8 million on net sales of INR1.5 billion for 2006-07. HALDIA STEELS: CRISIL Reaffirms 'BB' Ratings on Various Bank Loans ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Haldia Steels Ltd (HSL), a Haldia group company, continue to reflect Haldia group's constrained financial risk profile due to debt-funded capital expenditure (capex), limited risk management policies, and exposure to risks relating to marginal market share in the steel industry. These weaknesses are mitigated by the benefits that the Haldia group derives from its average forward-integration initiatives. INR225 Million Cash Credit BB/Stable (Reaffirmed) INR356.8 Million Term Loans BB/Stable (Reaffirmed) INR200 Million Letter of Credit * P4 (Reaffirmed) * Non-fund-based limits are interchangeable between letter of credit and bank guarantee CRISIL has combined the business and financial profiles of HSL, Brand Alloys Ltd (BAL), Ispat Damodar Ltd (IDL), and Sonic Thermal Pvt Ltd (STPL), together referred to as the Haldia group, as part of this rating exercise. This is because these companies have strong operational linkages and a common management. Outlook: Stable CRISIL expects the Haldia group's profitability to remain strained over the medium term owing to its significant capex plan and the weak industrial scenario. The Haldia group is expected to remain a small player in the domestic steel industry. The outlook may be revised to 'Positive' if there is substantial improvement in the Haldia group's profitability, or if the group is able to achieve linkages for raw material. Conversely, the outlook may be revised to 'Negative' if the group undertakes large, debt-funded capex, or reports reduced profitability. About the Group Established in 1994, the Haldia group commenced operations with an ingot manufacturing facility. Thereafter, the group expanded operations by setting up BAL in March 1994 as a steel and engineering unit. Subsequently, the promoters ventured into manufacturing ferro alloys and steel billets along with sponge iron in Durgapur, West Bengal, under HSL. The group also set up Brand Projects Ltd (later renamed as IDL) in April 1996. IDL began operations in December 2006, with sponge iron and steel ingot manufacturing facilities. STPL, incorporated in December 2002, is setting up two submerged electric arc furnaces with capacity of 7.5 megavolt amperes each, for the production of ferro manganese and silico manganese; it is also setting up pelletisation, bricketing and beneficiation equipment. The Haldia group reported a profit after tax (PAT) of INR111 million on net sales of INR4.1 billion in 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of INR90 million on net sales of INR2.8 billion in 2006-07. HI-TECH POWER: CRISIL Places 'BB+' Rating on INR25.7 Mln Term Loan ------------------------------------------------------------------ CRISIL has assigned its ratings of 'BB+/Negative/P4' to the various bank facilities of Hi-Tech Power & Steel Ltd (Hi-Tech). INR60 Million Cash Credit Limits BB+/Negative (Assigned) INR25.7 Million Term Loan BB+/Negative (Assigned) INR9 Million Standby Line of Credit P4 (Assigned) INR30 Million Letter of Credit P4 (Assigned) The ratings reflect Hi-Tech's marginal market share in the steel industry, and exposure to risks relating to non-integrated operations, and cyclicality in the steel industry. These weaknesses are, however, partially offset by Hi-Tech's above- average financial risk profile. Outlook: Negative CRISIL believes that Hi-Tech's business and financial risk profiles will be adversely impacted by the current slowdown in the steel industry, and by the company's planned debt-funded capital expenditure (capex). The rating may be downgraded if the company's operating margins decline significantly, or the company takes on more debt than expected to fund capex. Conversely, the outlook may be revised to 'Stable' if the company's revenues and profitability improve substantially, or if equity infusions enhance the company's financial risk profile. About Hi-Tech Power Hi-Tech was incorporated in 2000 by Mr. Ashok Kumar Agrawal, Mr. Binod Kumar Agarwal, Mr. Manoj Kumar Agarwal, Mr. Manoj Kumar Kariwalla and Mr Ashok Kumar Maskara. The company produces sponge iron at its unit at Raipur (Chattisgarh). Its two kilns have capacity to produce 100 tonnes of sponge iron per day. For 2007- 08 (refers to financial year, April 1 to March 31), Hi-Tech reported a profit after tax (PAT) of INR11 million on net sales of INR517 million, as against a PAT of INR0.2 million on net sales of INR339 million for 2006-07. ISPAT DAMODAR: CRISIL Reaffirms 'BB' Rating on INR1.80MM Term Loan ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Ispat Damodar Ltd (IDL), a Haldia group company, continue to reflect the Haldia group's constrained financial risk profile due to debt-funded capital expenditure (capex), limited risk management policies, and exposure to risks relating to marginal market share in the steel industry. These weaknesses are mitigated by the benefits that the Haldia group derives from its average forward-integration initiatives. INR28.8 Million Cash Credit BB/Stable (Reaffirmed) INR1.80 Million Term Loans BB/Stable (Reaffirmed) USD 2.36 Million FCNRB Term Loans BB/Stable (Reaffirmed) INR7.0 Million Letter of Credit * P4 (Reaffirmed) * Non-fund-based limits are interchangeable between letter of credit and bank guarantee CRISIL has combined the business and financial profiles of IDL, Brand Alloys Ltd (BAL), Haldia Steels Ltd (HSL), and Sonic Thermal Pvt Ltd (STPL), together referred to as the Haldia group, as part of this rating exercise. This is because these companies have strong operational linkages and a common management. Outlook: Stable CRISIL expects the Haldia group's profitability to remain strained over the medium term owing to its significant capex plan and the current slowdown in the economy. The Haldia group is expected to remain a small player in the domestic steel industry. The outlook may be revised to 'Positive' if there is substantial improvement in the Haldia group's profitability, or if the group is able to achieve linkages for raw material. Conversely, the outlook may be revised to 'Negative' if the group undertakes large, debt-funded capex, or reports reduced profitability. About the Group Established in 1994, the Haldia group commenced operations with an ingot manufacturing facility. Thereafter, the group expanded operations by setting up BAL in March 1994 as a steel and engineering unit. Subsequently, the promoters ventured into manufacturing ferro alloys and steel billets along with sponge iron in Durgapur, West Bengal, under HSL. The group also set up Brand Projects Ltd (later renamed as IDL) in April 1996. IDL began operations in December 2006, with sponge iron and steel ingot manufacturing facilities. STPL, incorporated in December 2002, is setting up two submerged electric arc furnaces with capacity of 7.5 megavolt amperes each, for the production of ferro manganese and silico manganese; it is also setting up pelletisation, bricketing, and beneficiation equipment. The Haldia group reported a profit after tax (PAT) of INR111 million on net sales of INR4.1 billion in 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of INR90 million on net sales of INR2.8 billion in 2006-07. JET AIRWAYS: Plans to Cut Domestic Flights by 10% in June --------------------------------------------------------- Jet Airways India Ltd plans to reduce domestic capacity by 10 percent in June on top of the 20 percent capacity cut it took from November to May, The Times of India reports. The report says the reduced capacity in domestic routes, however, will be added to the international operations where the airline is making profit. "Our EBIDTA growth on international sector is 24% in Q4 of 2008- 09, a figure that was negative on first two quarters of last fiscal and 12% in Q3. The improved result, though the overall condition is still challenging, is substantially due to international operations doing better. We are almost done with our international long-haul restructuring and there will be gradual expansion here," Jet CEO Wolfgang Prock-Schaeur was quoted by the Times as saying. The Times meanwhile says Jet expects to save US$330 million through route restructuring and cost-cutting programmes. The carrier also expect a cash release of US$270 million from restructuring of payment schedules to financial institutions and service providers. "So we have nearly US$600 million of cost saving and cash release for this fiscal," Mr. Prock-Schauer said. Jet Airways posted a consolidated net loss of INR9614.10 million for the year ended March 31, 2009, compared with consolidated net loss of INR6538.70 million for the year ended March 31, 2008. Consolidated total income increased from INR109907.20 million for the year ended March 31, 2008 to INR134488.60 million for the year ended March 31, 2009. About Jet Airways Jet Airways (India) Ltd (BOM:532617) -- http://www.jetairways.com/ -- currently operates a fleet of 85 aircraft, which includes 10 Boeing 777-300 ER aircraft, 10 Airbus A330-200 aircraft, 54 classic and next generation Boeing 737-400/700/800/900 aircraft and 11 modern ATR 72-500 turboprop aircraft. Flights to 63 destinations span the length and breadth of India and beyond, including New York (both JFK and Newark), San Francisco, Toronto, Brussels, London (Heathrow), Hong Kong, Singapore, Shanghai, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain, Muscat, Doha, Abu Dhabi and Dubai. The company's subsidiaries include Jet Lite (India) Limited, Jetair Private Limited, Jet Airways LLC, Trans Continental e Services Private Limited, Jet Enterprises Private Limited, Jet Airways of India Inc., India Jetairways Pty Limited and Jet Airways Europe Services N.V. On April 20, 2007, the Company acquired Sahara Airlines Limited. LAHOTI OVERSEAS: Strained Liquidity Cues CRISIL 'P4' Ratings ------------------------------------------------------------ CRISIL has assigned its ratings of 'P4' to the bank facilities of Lahoti Overseas Ltd. (Lahoti). INR87.5 Million Packing Credit P4 (Assigned) INR107.5 Million Bills Discounting P4 (Assigned) INR55.0 Million Proposed Short Term P4 (Assigned) Bank Loan Facility The ratings reflect Lahoti's strained short-term liquidity position. This is on account of the high sunk costs and losses incurred from its failed diversification initiatives into knitting and dyeing, and garment manufacturing businesses. The ratings also factor the company's modest size of trading operations. These weaknesses are, however, partially offset by the benefits derived from the promoters' long years of experience in cotton yarn trading. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Lahoti and Lahoti Terra Knitfab Ltd (LTKL), collectively referred to as the Lahoti group. This is because of the operational synergies and cash flow fungibility between the entities, and their common set of promoters. LTKL is 53 percent subsidiary of the company and is managed by the promoters of Lahoti. About Lahoti Overseas Incorporated in 1995, Lahoti is a trader of cotton yarn and related commodities primarily catering to the export market. Promoted by Mr. Umesh Lahoti and Mr. Ujwal Lahoti, the company is a government recognised three-star export house. In 2007, the company set up a garment manufacturing unit in Tirupur, Tamil Nadu which resulted in losses in 2008-09. Also, the company formed a 53 percent subsidiary in the same year to set up knitting and dyeing unit in Solapur, Maharashtra, which has been delayed. Lahoti reported a profit after tax (PAT) of INR26 million on net sales of INR1,985 million in 2007-08 as against a PAT of INR28 million on net sales of INR1,667 million for 2006-07. MANI SPINNING: CRISIL Assigns 'BB+' Rating on INR550MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its ratings of 'BB+/Stable/P4' to the various bank facilities of Mani Spinning Mills Pvt Ltd (MSMPL), a Eveready group entity. INR1063.30 Million Long Term Loan BB+/Stable (Assigned) INR550.00 Million Cash Credit BB+/Stable (Assigned) INR20.00 Million Bank Guarantee P4 (Assigned) The ratings reflect the group's below-average financial risk profile, marked by high gearing, and exposure to risks relating to fluctuations in the prices of raw materials. These weaknesses are, however, partially offset by the group's established presence in the spinning mills industry supported by extensive experience of group's promoters. For arriving at the ratings, CRISIL has combined the financials of MSMPL and Eveready Spinning Mills Pvt Ltd (Eveready Mills). This is because both MSMPL and Eveready Mills (together referred to as the Eveready group) are under common management, are in the same line of business, and there exists fungibilty of funds between the companies. Outlook: Stable CRISIL believes that Eveready group will maintain a comfortable financial risk profile over the medium term backed by steady accruals. The outlook may be revised to 'Positive' if the group's financial risk profile enhances substantially on the back of improvement in gearing and higher profitability. The outlook may be revised to 'Negative' if the group undertakes large, debt- funded capital expenditure, or faces decline in revenues and profitability due to the ongoing economic slowdown. About the Group The Eveready group was established in 1998, when its flagship entity, Eveready Mills, was set up. Eveready Mills manufactures cotton yarn of count size ranging from 30s to 40s. The group set up Fisher Spinning Mills Pvt Ltd (Fisher Mills) to manufacture yarn of low count, and MSMPL with a capacity of 60,000 spindles and 720 rotors to manufacture hosiery yarn. Fisher Mills was merged with MSMPL in 2006. Eveready group reported a loss of INR103.1 million on a turnover of INR1.78 billion for 2007-08 (refers to financial year, April 1 to March 31), as against a Profit After Tax (PAT) of INR6.8 million on net sales of INR1.5 billion for 2006-07. SATYAM COMPUTER: Four Tech Mahindra Nominees Join Company's Board ----------------------------------------------------------------- Satyam Computer Services Ltd. confirmed the appointment of the four nominee directors of Tech Mahindra's Venturbay Consultants Private Limited to the board of directors of the Company, effective May 27, 2009. The four nominee directors are: -- Mr. Vineet Nayyar, vice-chairman, managing director and chief executive officer of Tech Mahindra; -- Mr. C.P. Gurnani, head of Tech Mahindra�s global operations; -- Mr. Sanjay Kalra, President, Strategic Initiatives for Tech Mahindra; and -- Mr. Ulhas N. Yargop, President, IT Sector and group management board of Mahindra & Mahindra Ltd. Accordingly, Satyam's board now comprises ten directors, including six directors appointed in January by the Central Government pursuant to the orders of the Hon'ble Company Law Board. Mr. Vineet Nayyar has been designated as whole time director of the company effective as of June 1, 2009. Separately, The Wall Street Journal reports that Satyam Computer has seen some of its top executives leave the company over the past two months. According to WSJ, a company spokeswoman told Dow Jones Newswires that those who have quit include Virender Agarwal, business head of India, the Middle-East and the Asia-Pacific regions; Hetzel Folden, head of the strategic deals group; Naresh Jhangiani, human resources head of business process outsourcing, and Deepak Nangia, head of the Australian region. As reported in the Troubled Company Reporter-Asia Pacific, on January 7, 2009, former Satyam Chairman Ramalinga Raju resigned after saying he manipulated the company's accounts. Specifically, Mr. Raju said that as of September 30, 2008, the company's balance sheet carries: (1) inflated (non existent) cash and bank balances of 50.40 billion rupees (US$1.04 billion) (as against 53.61 billion reflected in the books); (2) an accrued interest of 3.76 billion rupees which is non existent; (3) an understated liability of 12.30 billion rupees on account of funds arranged by Mr. Raju; and (4) an overstated debtors position of 4.90 billion rupees (as against 26.51 billion reflected in the books). Mr. Raju's confession prompted investigations into the company by different entities including Andhra Pradesh state police, the U.S. Securities and Exchange Commission and the Securities and Exchange Board of India. Several groups also considered filing class action suits against the company. A three-member board was subsequently created by the government which appointed KPMG and Deloitte Touche Tohmatsu for re- evaluation of the software company's books. Mr. Raju was later found to have invented more than one quarter of Satyam's workforce and used fictitious names to siphon Rs200 million (US$4.1 million) a month out of the company, The Financial Times said in a report. The TCR-AP, citing Bloomberg News, reported on March 9, 2009, that Satyam won approval to sell stake in itself, as the company seeks to restore investor confidence and stem client defections. Satyam said it received approval from the Securities and Exchange Board of India ("SEBI") to facilitate a global competitive bidding process which, subject to receipt of all approvals, contemplates the selection of an investor to acquire a 51% interest in the company. On April 14, 2009, the TCR-AP, citing the Financial Express, reported that Tech Mahindra Limited emerged as the top bidder with an offer of INR58 a share for a 31 per cent stake in Satyam Computer Services Limited, beating strong rival L&T. Tech Mahindra would acquire the stake in an all-cash deal, followed by an open offer for a 20 percent stake to take management control of the company. About Satyam Headquartered in Secunderabad, India, Satyam Computer Services Limited (BOM:500376) -- http://www.satyam.com/-- is a global information technology (IT) services provider, offering a range of services, including systems design, software development, system integration and application maintenance. It offers a range of IT services to its customers, including application development and maintenance, consulting and enterprise business solutions, extended engineering solutions and infrastructure management services. Satyam BPO Limited (Satyam BPO), a majority-owned subsidiary of the Company, is engaged in providing business process outsourcing (BPO) services. Satyam operates in two segments: IT services and BPO services. On January 4, 2008, the Company acquired Nitor global Solutions Ltd. On April 4, 2008, it acquired Bridge Strategy Group LLC. In November 2008, it announced the take over of Motorola Inc.'s software development centre in Malaysia. TATA MOTORS: Completes Refinancing of US$3 Billion JLR Bridge Loan ------------------------------------------------------------------ Soyoung Kim at Reuters reports that Tata Motors Ltd said on Wednesday it has completed refinancing of the US$3 billion bridge loan it took out to acquire luxury car brands Jaguar and Land Rover from Ford Motor Co in 2008. Reuters relates Tata Motors said it has extended the final maturity of the remaining US$1 billion by 18 months up to the end of 2010. Tata Motors agreed to pay interest of 5 percentage points more than the London interbank offered rate for the 18-month loan, Times of India says citing two people with knowledge of the matter. Tata Motors, as cited by Reuters, said a total of 21 lenders participated in the agreement, leading to an oversubscription of 47 percent of the extended loan. Reuters notes Tata Motors had already repaid US$1.16 billion of the US$3 billion bridge loan last year. On May 25, 2009, the Troubled Company Reporter-Europe, citing Bloomberg News, reported Tata Motors raised INR42 billion (US$887 million) by selling debt securities. According to Bloomberg News, the company sold the securities Wednesday last week to mutual funds, banks, insurance companies and other investors to help repay the 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 said citing Tata Motors in a statement. 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-'. S&P said 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. ================= I N D O N E S I A ================= ANEKA TAMBANG: To Reduce Capex in 2009 Due to Economic Conditions ----------------------------------------------------------------- PT Aneka Tambang (Antam) will significantly pare back its capital expenditure (Capex) this year, with a number of projects being cancelled due to low nickel prices and continuing global economic uncertainty, Jakarta Globe reports. The company previously planned to spend IDR3 trillion (US$291 million) on capex this year, the report recounts. "Given the current conditions, we will focus on three projects that are line with our strategy", Alwin Syah Loebis, Antam's president director, was quoted by the report as saying. The report, citing Mr. Loebis, says that the company will pursue diversification, acquisition of mining licences and cost-cutting this year. The company, which plans to diversify into coal, has entered into an agreement with PT Indika Energy to build a coal-fired power plant in Pomalaa [Southeast Sulawesi] to provide an alternative energy source for our ferronickel plant, the report adds citing Mr. Loebis. About Aneka Tambang PT Aneka Tambang Tbk (JAK:ANTM) -- http://www.antam.com/-- is an Indonesia-based diversified mining and metals company. The Company is engaged in the mining of natural deposits, manufacturing, trading, transportation and other related activities. The Company undertakes activities from exploration, excavation, processing to marketing of nickel ore, ferronickel, gold, silver, bauxite and iron sands. Its nickel operations are located in Southeast Sulawesi and North Maluku, its gold mine is in Pongkor in West Java, while its precious metal refinery is in Jakarta, its bauxite mine is in Riau province and its iron sands mine is in Central Java. Its largest bauxite deposit is located at Tayan, West Kalimantan and its largest nickel deposit is at Buli, North Maluku. * * * The company continues to carry Moody's Investors Service 'Ba3' long-term corporate family rating. It also carries S&P's 'B+' ratings on long-term foreign and local issuer credit. GARUDA INDONESIA: Inks Debt Restructuring Deal with Some Creditors ------------------------------------------------------------------ PT Garuda Indonesia has reached a debt restructuring agreement with several of its creditors to pay its debts worth US$600 million, Jakarta Globe reports. "Our creditors have agreed to extend all of their loans by seven years", the report quoted Eddy Porwanto, Garuda�s chief financial officer as saying. The report, citing Mr. Porwanto, says that the European Credit Agency (ECA), one of Garuda�s largest creditors, had agreed to extend the tenure of its US$450 million in outstanding loans by seven years. The company will start paying installments this June, the report adds citing Mr. Porwanto. According to the news agency, restructuring the airline's debt into a manageable package is a major prerequisite for holding its initial public offering. The company's total debts amount to about US$700 million, including US$450 million in dollar-denominated loans and a further US$200 million in rupiah, the report noted. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. ========= J A P A N ========= BANK OF IKEDA: Fitch Affirms 'BB+' Long-Term Issuer Default Rating ------------------------------------------------------------------ Fitch Ratings has affirmed Bank of Ikeda Ltd.'s ratings following an agreement on its integration with Senshu Bank, a subsidiary of Bank of Tokyo-Mitsubishi UFJ (BTMU, 'A'/Stable). The Outlook is Stable. Ikeda's ratings are: -- Long-term foreign and local currency Issuer Default Ratings affirmed at 'BB+'; Outlook Stable; -- Short-term foreign and local currency IDRs affirmed at 'B'; -- Individual rating affirmed at 'D'; -- Support Rating affirmed at '3'; -- Support Rating Floor affirmed at 'BB+'; and -- Dated subordinated debt affirmed at 'BB'. Based on the agreement, Ikeda and Senshu will form a joint holding company through a share transfer on 1 October 2009. BTMU will own approximately 36% of the new holding company, and the new entity will become an equity method affiliate of BTMU. However as BTMU intends to reduce its own stake to less than 10% latest by September 2014, and less than 15% after including stakes held by Mitsubishi UFG Financial Group (BTMU's parent) related companies, Fitch believes the consolidation and eventual merger are unlikely to trigger an increase in potential long-term support from MUFG. The consolidation will, nevertheless, increase the size and market share of the bank (holding company) in Osaka prefecture (around 4% of deposits and 5% of loans based on FYE08 figures). Therefore the agency expects a moderate probability of the support, in case of need, from the government, which underpins the Support Rating of '3'. Ikeda's 'BB+' Long-term foreign and local currency IDRs are at the Support Rating Floor. Barring a substantial weakening in either the ability or the willingness of the government to provide support, a further downgrade of the IDR is unlikely, hence the Stable Outlook. Ikeda posted a net loss (JPY37bn) again in the fiscal year to end- March 2009 (FYE09), mainly due to further sizable losses on securities investments and sharply higher loan loss charges. The net loan loss charges increased 31% yoy to JPY12bn, 5.7x its pre- provision operating profit. This created further pressure on Ikeda's already weak capitalization, together with unrealized losses on its securities investment (JPY5.6bn), causing its non- consolidated equity on its balance sheet to fall 15% yoy. The bank's non-consolidated Tier 1 capital ratio, which does not take into account the adverse effects of unrealized losses on the securities investment, stood at 5.17% at end-March 2009 versus 5.58% a year ago. JAPAN AIRLINES: Inks Deal W/ Mitsui to Jointly Offer Cargo Service ------------------------------------------------------------------ Japan Airlines Group ("JAL") and Mitsui & Co., Ltd ("Mitsui") have jointly agreed on a business alliance in the logistics field, with JAL offering its air cargo transport services and Mitsui offering logistics solution services centering on sea freight transport in what is a first of its kind cooperation between an airline and a general trading company in Japan. Under the agreement, both parties will complement each other with their respective strengths to further improve service and increase competitiveness. "Value-up Innovation Partners by Mitsui & JAL" is the one-stop service solution formulated as a result of their collaboration, and aims to offer customers an enhanced value chain with wider options in the areas of transportation modes, logistics processing, and other technique-based functions such as logistics financing. "At a time when global demand in the logistics sector is weak, and as the industry continues to face a challenging year ahead, JAL and Mitsui both recognize the need to expand service territories and to raise the level of convenience and service standards by providing a comprehensive and seamless transport process that will meet the needs of the customers. The companies hope that through the partnership, they can both transcend the frameworks of a logistics division in a general trading firm and of an airline, and integrate their respective features and functions to offer support to the businesses of their customers," JAL said in a statement. Both group companies will start sales activities from July 1, 2009. About Mitsui Mitsui & Co., Limited (Mitsui) and its subsidiaries are a general trading company engaged in a range of global business activities, including global trading of various commodities, arranging financing for customers and suppliers in connection with the trading activities, organizing and coordinating international industrial projects, participating in financing and investing arrangements, assisting in the procurement of raw materials and equipment, providing new technologies and processes for manufacturing, and coordinating transportation and marketing of finished goods. The trading activities of the Company include the sale, distribution, purchase, marketing and supply of and dealing in a range of products and services including iron and steel, non- ferrous metals , machinery, electronics, chemicals, energy-related commodities and products, food products, textiles, general merchandise and real estate. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan- based holding company that is active in five business segments through its 225 subsidiaries and 82 associated companies. The Air Transportation segment is engaged in the operation of passenger and cargo planes. The Air Transportation-Related segment is engaged in the transportation of passengers and cargoes, the preparation of in-flight food catering, the maintenance of aircraft and land equipment, as well as the fueling business. The Travel Planning and Marketing segment is involved in the planning and sale of travel packages. The Card and Leasing segment is engaged in the provision of finance, cards and leasing services. The Others segment is involved in businesses related to hotels, resorts, logistics, wholesale, retail, real estate, printing, construction, manpower dispatch, as well as information and communication. The Company has numerous global operating locations. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. * * * As reported in the Troubled Company Reporter-Asia Pacific on February 11, 2009, Moody's Investors Service changed the outlook on the Ba3 long-term debt rating and issuer rating of Japan Airlines International Co. Ltd. to negative from positive. The outlook change reflects Moody's view that JALI's profitability is likely to remain pressured amid the recent sharp decline in airline passenger demand. Japan Airlines Corporation continues to carry Standard & Poor's Ratings 'B+' LT Foreign & Local Issuer Credit. The outlook is positive. *S&P Cuts Ratings on 29 Tranches From 21 Japanese CDO Deals ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 29 tranches relating to 21 Japanese synthetic CDO transactions. At the same time, Standard & Poor's removed its ratings on 20 of the 29 tranches from CreditWatch, while keeping the ratings on the other nine on CreditWatch with negative implications. In addition, Standard & Poor's affirmed its ratings on four tranches and removed the ratings from CreditWatch with negative implications. The rating actions are part of S&P's regular monthly review of synthetic CDOs whose ratings have been placed on CreditWatch with positive or negative implications. The ratings assigned here are based on S&P's criteria for rating synthetic CDOs. As recently announced, however, this criteria is under review. S&P solicited feedback from market participants with regard to proposed changes to S&P's collateralized loan obligation and synthetic CDO criteria. S&P will evaluate the market feedback, which may result in changes to the criteria. Any such criteria changes may affect the rating(s) on the notes affected by the rating actions. Ratings List Corsair (Jersey) No. 2 Ltd. Floating rate secured portfolio credit-linked notes series 27 (Trinity) To From Issue Amount -- ---- ------------ AAA AAA/Watch Neg $10.0 mil. Fixed rate credit-linked loan series 58 To From Issue Amount -- ---- ------------ BBB A-/Watch Neg JPY3.0 bil. Floating rate secured portfolio credit-linked notes series 81 To From Issue Amount -- ---- ------------ CCC- CCC-/Watch Neg JPY1.0 bil. Eirles Two Ltd. Series 197 floating rate portfolio credit linked secured notes To From Issue Amount -- ---- ------------ A-/Watch Neg AA-/Watch Neg JPY4.0 bil. Helium Capital Ltd. Series 49 limited recourse secured synthetic CDO notes To From Issue Amount -- ---- ------------ B/Watch Neg BB-/Watch Neg $40.0 mil. Hummingbird Securitization Ltd. Series 2 loan Class To From Issue Amount ----- -- ---- ------------ #2 Loan B B+/Watch Neg JPY3.0 bil. J-Bear Funding Ltd. Limited recourse secured floating rate portfolio credit-linked notes series 36 To From Issue Amount -- ---- ------------ BB BB/Watch Neg $10.0 mil. Momentum CDO (Europe) Ltd. Secured credit-linked notes (Louvre CDO) series 2005-1 Class To From Issue Amount ----- -- ---- ------------ AF BB-/Watch Neg BB/Watch Neg JPY1.0 bil. AX BB-/Watch Neg BB/Watch Neg JPY1.5 bil. BF B-/Watch Neg B/Watch Neg JPY1.0 bil. BX B-/Watch Neg B/Watch Neg JPY200.0 mil. Secured credit-linked notes Louvre II CDO series 2005-2 Class To From Issue Amount ----- -- ---- ------------ AX BB+ BBB/Watch Neg JPY700.0 mil. BF BB+/Watch Neg BBB-/Watch Neg JPY1.5 bil. BX BB+/Watch Neg BBB-/Watch Neg JPY2.2 bil. Secured credit-linked loan Louvre CDO II series 2005-3 To From Issue Amount -- ---- ------------ BB+ BBB/Watch Neg JPY3.0 bil. Prelude III floating rate notes series 2005-4 To From Issue Amount -- ---- ------------ BB+/Watch Neg BBB-/Watch Neg JPY3.0 bil. SONATA notes series 2006-2 Class To From Issue Amount ----- -- ---- ------------ AF CCC B-/Watch Neg JPY2.0 bil. AX CCC B-/Watch Neg JPY1.1 bil. SONATA floating rate notes series 2006-5 Class To From Issue Amount ----- -- ---- ------------ AF CCC CCC+/Watch Neg EUR5.0 mil. SONATA notes series 2006-7 Class To From Issue Amount ----- -- ---- ------------ BF CCC- CCC+/Watch Neg JPY100.0 mil. BX CCC- CCC+/Watch Neg JPY700.0 mil. SONATA fixed-rate notes series 2006-10 Class To From Issue Amount ----- -- ---- ------------ AX CCC- CCC+/Watch Neg EUR20.0 mil. SONATA floating rate notes series 2006-11 Class To From Issue Amount ----- -- ---- ------------ AF CCC CCC+/Watch Neg $6.0 mil. Omega Capital Investments PLC Class A-1 series 11 secured 1.5% notes To From Issue Amount -- ---- ------------ BBB- BBB-/Watch Neg JPY2.2 bil. Secured multi rate notes series 32 Class To From Issue Amount ----- -- ---- ------------ A1 CCC- CCC+/Watch Neg JPY500.0 mil. A2 CCC- CCC+/Watch Neg JPY300.0 mil. Signum Vanguard Ltd. Class A secured fixed rate credit-linked loan series 2005-04 To From Issue Amount -- ---- ------------ B B+/Watch Neg JPY4.0 bil. Secured floating rate credit-linked notes series 2005-07 To From Issue Amount -- ---- ------------ B BB/Watch Neg JPY3.0 bil. Series 2006-05 secured floating rate credit-linked notes To From Issue Amount -- ---- ------------ CCC+ B-/Watch Neg JPY600.0 mil. Secured floating rate credit-linked notes series 2006-10 To From Issue Amount -- ---- ------------ CCC CCC+/Watch Neg JPY300.0 mil. Silk Road Plus PLC Limited recourse secured floating-rate credit-linked notes series 5 class C1-J To From Issue Amount -- ---- ------------ BB BBB-/Watch Neg JPY1.0 bil. Limited recourse secured floating rate credit-linked notes series 7 class A1-U To From Issue Amount -- ---- ------------ BBB BBB+/Watch Neg $0.1 mil. Limited recourse secured floating-rate credit-linked notes series 10 class A1-E To From Issue Amount -- ---- ------------ BBB BBB+/Watch Neg EUR10.0 mil. ============= L E B A N O N ============= BANK AUDI: Moody's Puts Currency Deposit Ratings on Review ---------------------------------------------------------- Moody's Investors Service has placed on review for possible downgrade the global local currency deposit ratings of three Lebanese banks (Bank Audi, Blom Bank and Byblos Bank). All other ratings assigned to these banks are not affected by this action. "The review of the three banks' ratings will look at the extent to which the Lebanese government's ability to provide support to its banking system, if needed, is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis. At present the GLC deposit ratings of the banks on review receive a one-notch uplift due to systemic support," says Stathis Kyriakides, a Limassol-based Moody's Assistant Vice President - Analyst, and lead analyst for these issuers. Moody's believes that most governments are at least as likely, if not more likely, to support their banking systems as they are to service their own debt, a view that has traditionally led to bank ratings often benefiting from significant uplift due to systemic support. However, as the financial crisis continues, the capacity of countries and their respective central banks to support their banks converges with, and is increasingly constrained by, each government's respective debt capacity. As such, Moody's will be reassessing the level of systemic support for the aforementioned Lebanese banks to determine whether the systemic support they receive needs to be further aligned to the government's local currency bond rating. Moody's will review the specific circumstances of Lebanon to determine the appropriate systemic support for Lebanese bank ratings and the implications for the three banks under review. Factors that Moody's will consider in its assessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to the government's political patterns and priorities. The rating agency expects to conclude the review over the next few weeks. Meanwhile, the BFSRs of Bank Audi, Blom Bank and Byblos Bank are unaffected as Moody's believes that their adequate capitalisation enables them to absorb a level of stress in line with Moody's expected loss assumptions. The detailed ratings and actions are listed below: Bank Audi: -- Bank financial strength rating of D- was unaffected and continues to carry a stable outlook -- Long-term global local currency (GLC) deposit rating of Ba2 was placed on review for possible downgrade -- Long-term foreign currency deposit rating of B2 was unaffected as it remains constrained by Lebanon's foreign currency deposit ceiling and continues to carry a stable outlook -- National Scale Rating of Aa1.lb was unaffected and continues to carry a stable outlook -- Short-term local- and foreign-currency deposit ratings of Not-Prime were unaffected and carry a stable outlook Blom Bank: -- Bank financial strength rating of D- was unaffected and continues to carry a stable outlook -- Long-term global local currency deposit rating of Ba2 was placed on review for possible downgrade -- Long-term foreign currency deposit rating of B2 was unaffected as it remains constrained by Lebanon's foreign currency deposit ceiling and continues to carry a stable outlook -- National Scale rating of Aa1.lb was unaffected and continues to carry a stable outlook -- Short-term local- and foreign-currency deposit ratings of Not-Prime were unaffected and carry a stable outlook Byblos Bank: -- Bank financial strength rating of D- was unaffected and continues to carry a stable outlook -- Long-term global local currency (GLC) deposit rating of Ba2 was placed on review for possible downgrade -- Long-term foreign currency deposit rating of B2 was unaffected as it remains constrained by Lebanon's foreign currency deposit ceiling and continues to carry a stable outlook -- Foreign currency senior unsecured debt rating of B1 was unaffected as it remains constrained by Lebanon's foreign currency debt ceiling and continues to carry a stable outlook. -- Foreign currency subordinated debt rating of B1 was unaffected as it remains constrained by Lebanon's foreign currency debt ceiling and continues to carry a stable outlook -- National Scale rating of Aa2.lb was unaffected and continues to carry a stable outlook -- Short term local- and foreign-currency deposit ratings of Not-Prime were unaffected and carry a stable outlook Moody's previous rating action on Bank Audi, Blom Bank and Byblos Bank was on April 2, 2009, when the rating agency upgraded to B2 from B3 the constrained long-term foreign currency deposit ratings of these issuers. Moody's also upgraded Byblos Bank's constrained foreign currency senior and subordinated bond ratings to B1 from B2. BLOM BANK: Moody's Puts Currency Deposit Ratings on Review ---------------------------------------------------------- Moody's Investors Service has placed on review for possible downgrade the global local currency deposit ratings of three Lebanese banks (Bank Audi, Blom Bank and Byblos Bank). All other ratings assigned to these banks are not affected by this action. "The review of the three banks' ratings will look at the extent to which the Lebanese government's ability to provide support to its banking system, if needed, is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis. At present the GLC deposit ratings of the banks on review receive a one-notch uplift due to systemic support," says Stathis Kyriakides, a Limassol-based Moody's Assistant Vice President - Analyst, and lead analyst for these issuers. Moody's believes that most governments are at least as likely, if not more likely, to support their banking systems as they are to service their own debt, a view that has traditionally led to bank ratings often benefiting from significant uplift due to systemic support. However, as the financial crisis continues, the capacity of countries and their respective central banks to support their banks converges with, and is increasingly constrained by, each government's respective debt capacity. As such, Moody's will be reassessing the level of systemic support for the aforementioned Lebanese banks to determine whether the systemic support they receive needs to be further aligned to the government's local currency bond rating. Moody's will review the specific circumstances of Lebanon to determine the appropriate systemic support for Lebanese bank ratings and the implications for the three banks under review. Factors that Moody's will consider in its assessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to the government's political patterns and priorities. The rating agency expects to conclude the review over the next few weeks. Meanwhile, the BFSRs of Bank Audi, Blom Bank and Byblos Bank are unaffected as Moody's believes that their adequate capitalisation enables them to absorb a level of stress in line with Moody's expected loss assumptions. The detailed ratings and actions are listed below: Bank Audi: -- Bank financial strength rating of D- was unaffected and continues to carry a stable outlook -- Long-term global local currency (GLC) deposit rating of Ba2 was placed on review for possible downgrade -- Long-term foreign currency deposit rating of B2 was unaffected as it remains constrained by Lebanon's foreign currency deposit ceiling and continues to carry a stable outlook -- National Scale Rating of Aa1.lb was unaffected and continues to carry a stable outlook -- Short-term local- and foreign-currency deposit ratings of Not-Prime were unaffected and carry a stable outlook Blom Bank: -- Bank financial strength rating of D- was unaffected and continues to carry a stable outlook -- Long-term global local currency deposit rating of Ba2 was placed on review for possible downgrade -- Long-term foreign currency deposit rating of B2 was unaffected as it remains constrained by Lebanon's foreign currency deposit ceiling and continues to carry a stable outlook -- National Scale rating of Aa1.lb was unaffected and continues to carry a stable outlook -- Short-term local- and foreign-currency deposit ratings of Not-Prime were unaffected and carry a stable outlook Byblos Bank: -- Bank financial strength rating of D- was unaffected and continues to carry a stable outlook -- Long-term global local currency (GLC) deposit rating of Ba2 was placed on review for possible downgrade -- Long-term foreign currency deposit rating of B2 was unaffected as it remains constrained by Lebanon's foreign currency deposit ceiling and continues to carry a stable outlook -- Foreign currency senior unsecured debt rating of B1 was unaffected as it remains constrained by Lebanon's foreign currency debt ceiling and continues to carry a stable outlook. -- Foreign currency subordinated debt rating of B1 was unaffected as it remains constrained by Lebanon's foreign currency debt ceiling and continues to carry a stable outlook -- National Scale rating of Aa2.lb was unaffected and continues to carry a stable outlook -- Short term local- and foreign-currency deposit ratings of Not-Prime were unaffected and carry a stable outlook Moody's previous rating action on Bank Audi, Blom Bank and Byblos Bank was on April 2, 2009, when the rating agency upgraded to B2 from B3 the constrained long-term foreign currency deposit ratings of these issuers. Moody's also upgraded Byblos Bank's constrained foreign currency senior and subordinated bond ratings to B1 from B2. BYBLOS BANK: Moody's Puts Currency Deposit Ratings on Review ------------------------------------------------------------ Moody's Investors Service has placed on review for possible downgrade the global local currency deposit ratings of three Lebanese banks (Bank Audi, Blom Bank and Byblos Bank). All other ratings assigned to these banks are not affected by this action. "The review of the three banks' ratings will look at the extent to which the Lebanese government's ability to provide support to its banking system, if needed, is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis. At present the GLC deposit ratings of the banks on review receive a one-notch uplift due to systemic support," says Stathis Kyriakides, a Limassol-based Moody's Assistant Vice President - Analyst, and lead analyst for these issuers. Moody's believes that most governments are at least as likely, if not more likely, to support their banking systems as they are to service their own debt, a view that has traditionally led to bank ratings often benefiting from significant uplift due to systemic support. However, as the financial crisis continues, the capacity of countries and their respective central banks to support their banks converges with, and is increasingly constrained by, each government's respective debt capacity. As such, Moody's will be reassessing the level of systemic support for the aforementioned Lebanese banks to determine whether the systemic support they receive needs to be further aligned to the government's local currency bond rating. Moody's will review the specific circumstances of Lebanon to determine the appropriate systemic support for Lebanese bank ratings and the implications for the three banks under review. Factors that Moody's will consider in its assessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to the government's political patterns and priorities. The rating agency expects to conclude the review over the next few weeks. Meanwhile, the BFSRs of Bank Audi, Blom Bank and Byblos Bank are unaffected as Moody's believes that their adequate capitalisation enables them to absorb a level of stress in line with Moody's expected loss assumptions. The detailed ratings and actions are listed below: Bank Audi: -- Bank financial strength rating of D- was unaffected and continues to carry a stable outlook -- Long-term global local currency (GLC) deposit rating of Ba2 was placed on review for possible downgrade -- Long-term foreign currency deposit rating of B2 was unaffected as it remains constrained by Lebanon's foreign currency deposit ceiling and continues to carry a stable outlook -- National Scale Rating of Aa1.lb was unaffected and continues to carry a stable outlook -- Short-term local- and foreign-currency deposit ratings of Not-Prime were unaffected and carry a stable outlook Blom Bank: -- Bank financial strength rating of D- was unaffected and continues to carry a stable outlook -- Long-term global local currency deposit rating of Ba2 was placed on review for possible downgrade -- Long-term foreign currency deposit rating of B2 was unaffected as it remains constrained by Lebanon's foreign currency deposit ceiling and continues to carry a stable outlook -- National Scale rating of Aa1.lb was unaffected and continues to carry a stable outlook -- Short-term local- and foreign-currency deposit ratings of Not-Prime were unaffected and carry a stable outlook Byblos Bank: -- Bank financial strength rating of D- was unaffected and continues to carry a stable outlook -- Long-term global local currency (GLC) deposit rating of Ba2 was placed on review for possible downgrade -- Long-term foreign currency deposit rating of B2 was unaffected as it remains constrained by Lebanon's foreign currency deposit ceiling and continues to carry a stable outlook -- Foreign currency senior unsecured debt rating of B1 was unaffected as it remains constrained by Lebanon's foreign currency debt ceiling and continues to carry a stable outlook. -- Foreign currency subordinated debt rating of B1 was unaffected as it remains constrained by Lebanon's foreign currency debt ceiling and continues to carry a stable outlook -- National Scale rating of Aa2.lb was unaffected and continues to carry a stable outlook -- Short term local- and foreign-currency deposit ratings of Not-Prime were unaffected and carry a stable outlook Moody's previous rating action on Bank Audi, Blom Bank and Byblos Bank was on April 2, 2009, when the rating agency upgraded to B2 from B3 the constrained long-term foreign currency deposit ratings of these issuers. Moody's also upgraded Byblos Bank's constrained foreign currency senior and subordinated bond ratings to B1 from B2. =============== M A L A Y S I A =============== HO HUP: Indera Files Wind Up Petition Against Unit -------------------------------------------------- Ho Hup Construction Company Bhd disclosed in a regulatory filing that a winding-up petition has been served on Bukit Jalil Development Sdn. Bhd. ("BJD"), a major subsidiary of the company, by Indera Management Services (KL) Sdn. Bhd. The High Court at Kuala Lumpur will hear the petition on July 2, 2009. The company said Indera Management Services alleges BJD of non- payment of property management fee due amounting to MYR190,665.50 as at June 30, 2008. The company is seeking legal advice on the strength of the winding-up petition. The directors of the company do not envisage the impact of winding-up petition on the Group, financially or operationally, to be very significant. 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. PECD BERHAD: Unit's Wind-up Petition Hearing Moved to September 3 ----------------------------------------------------------------- PECD Berhad said the winding-up petition by Tacam Jaya Technologies Sdn. Bhd. against PECD Construction Sdn. Bhd., the company's subsidiary, which was fixed for hearing on Feb. 17, 2009, had been further adjourned to September 3, 2009. As reported in the Troubled Company Reporter-Asia Pacific on July 3, 2008, PECD Berhad disclosed that the company's subsidiary, PECD Construction Sdn Bhd, received a wind-up petition from TacamJaya Technologies Sdn Bhd. TacamJaya claimed for a sum MYR926,929.11, the alleged amount owed by PECD Construction. Circumstances Leading to Filing of the Petition 1) PECD Construction received a Notice pursuant to Section 218 (2) (a) of the Companies Act, 1965 on March 28, 2008, from the petitioner's solicitors, Messrs. Goh Haslinda & Partners demanding payment of MYR926,929.11, the alleged amount due and owed under The Construction and Completion of the Proposed 6 Storey Private Hospital 3-Basement car park on Lot 290 & 291 Section 63, Jalan Tun Razak, Kuala Lumpur project; and 2) The Petition was presented when payment were not made. About PECD Berhad PECD Berhad is engaged in investment holding and provision of management services. The company operates in four business segments: construction, EPCC oil and gas, property development and others. Its wholly owned subsidiaries include Peremba Construction Sdn. Bhd., which is engaged in general construction and investment holding and Wong Heng Engineering Sdn. Bhd., which is engaged in investment holding and engineering, procurement, construction and commissioning emphasizing in the oil and gas, as well as the power sectors. PECD Berhad's 70%- owned subsidiary is Peremba Jaya Holdings Sdn. Bhd., which is engaged in property development, construction and investment holding. * * * The Troubled Company Reporter-Asia Pacific reported on March 7, 2008, that the company was classified as an Affected Listed Issuer under Practice Note No. 17/2005 of the Listing Requirements of Bursa Malaysia Securities Berhad, since the company's shareholders' equity deficit reached MYR914.9 million as at December 31, 2007. ==================== N E W Z E A L A N D ==================== BLIS TECHNOLOGIES: Posts NZ$488,000 Annual Net Loss --------------------------------------------------- Blis Technologies reported a net loss of NZ$488,000 for the year ended March 31, 2009, an improvement on the previous year's loss of NZ$617,000. Revenue for the year increased 31 percent to NZ$1.15 million while product sales were down 7 percent to NZ$609,000 primarily due to the reduction in sales in Australia and New Zealand. Licensing revenue from Nestle Nutrition for the year was NZ$155,000 compared with nothing in the previous year. The overall reduction in product sales occurred despite the marked lift in sales in the USA following the appointment of Frutarom Ltd as the global distributor in October 2008. US sales were NZ$325,000 with international revenue amounting to NZ$462,000. NZ revenue was lower than the previous year by 28 percent, but that was now being reversed in the current year as a result of the marketing campaign developed with Pharmabroker NZ. Shareholder funds currently stand at NZ$1.919 million, compared to NZ$1.923 million the previous year. No tax is payable and no dividend will be paid. Based in New Zealand, BLIS Technologies Limited (NZE:BLT) -- http://www.blis.co.nz/-- develops healthcare products based on strains of bacteria that produce bacteriocin like inhibitory substances (BLIS). These BLIS probiotics are selective and target disease causing bacteria. BLIS K12 lozenges contain Streptococcus salivarius K12, which have been shown to assist in maintaining throat health. BLIS Bio RESTORE is a course of specially selected intestinal and oral bacteria designed to help repopulate the body with beneficial bacteria. BLIS Throat Spray contains natural oils specially selected for their individual properties, and which as a combination help soothe and moisten a dry irritated throat. BLIS K12 Travel Guard lozenges contain Streptococcus salivarius K12, which has been shown to support the throat's natural immune defense system. * * * BLIS Technologies reported three consecutive net losses of NZ$616,811; NZ$964,253; and NZ$1,107,851 for the years ended March 31, 2008, 2007 and 2006, respectively. FISHER & PAYKEL: Sells Stake to Haier, Gets New Bank Funding ------------------------------------------------------------ Gavin Evans at Bloomberg News reports that Fisher & Paykel Appliances Holdings Ltd. has sold a stake to China�s Haier Group and arranged new bank funding. According to Bloomberg News, Fisher & Paykel said China�s biggest appliance maker will invest NZ$46 million (US$29 million) for a 17 percent stake and participate in a rights offer raising at least another NZ$143 million. As part of the refinancing package, investors, including Haier, will be offered another share for every one held at 41 N.Z. cents each, Bloomberg News says. The offer is being underwritten by the local units of Deutsche Bank AG and Credit Suisse. Agence France-Presse relates Fisher & Paykel and Haier have also struck a co-operation deal where they will share market resources, develop products and co-ordinate their manufacturing facilities. Haier will have exclusive marketing and distribution rights for Fisher & Paykel products in China and Fisher & Paykel will have the same rights for Haier products in Australasia, AFP says. New Bank Funding The company arranged a new NZ$575 million, three- year banking package, Bloomberg News discloses. Of this, NZ$235 million has to be repaid by the end of April next year, AFP says. Bloomberg News relates Fisher & Paykel posted a NZ$95.3 million full-year loss Wednesday after sales in Europe and the U.S. plunged and it was forced to sell properties to reduce debt. The same report recalls the company warned investors in February it may need to raise capital after a plant closure in the U.S. and a slump in the New Zealand dollar increased debts incurred shifting output overseas. AFP says the New Zealand white goods manufacturer's debt ballooned to US$323.5 million as it shifted manufacturing to cheaper countries such as Thailand and Mexico. About Fisher & Paykel Fisher & Paykel Appliances Holdings Ltd. -- http://www.fisherpaykel.com/-- is a New Zealand-based company, which has two principal areas of business: Appliance manufacturer, distributor and marketer (Appliances Group) and Financial services in New Zealand (Finance Group). The principal activity of the Appliances business is the design, manufacture and marketing of household appliances. Its major markets are New Zealand, Australia, North America and Europe. The Appliances business has manufacturing operations in New Zealand, Australia, North America, Italy and Thailand. The Finance business is a provider of retail point of sale consumer finance (including the Farmers Finance Card), insurance services, and rental and leasing finance. ===================== P H I L I P P I N E S ===================== GOTESCO LAND: SEC Revokes Licence Due to Non-Submission of Reports ------------------------------------------------------------------ The Philippine Stock Exchange (PSE) received an order from the Securities and Exchange Commission revoking the license of Gotesco Land, (Inc.) due to its non-compliance of Structured Repertorial Requirements. According to the PSE's disclosure, Gotesco Land failed to file: -- 2007 Annual Report (SEC Form 17-A); -- 2008 1st Quarter Report (SEC Form 17-Q); -- 2008 2nd Quarter Report (SEC Form 17-Q); and -- 2008 3rd Quarter Report (SEC Form 17-Q). Headquartered in Manila, Philippines, Gotesco Land, Inc. is the holding company of the Ever-Gotesco Group of Companies for its property development projects. As a real estate company, it acquired various interests principally involved in leisure/tourist estate developments. The company was partially successful in the early part of the three-year period but was hit by the 1997 Asian economic crisis that led to the temporary suspension of some of its affiliates' various on-going real estate projects. ================= S I N G A P O R E ================= DMC CHEMICALS: Court to Hear Wind-Up Petition on June 5 ------------------------------------------------------- A petition to have DMC Chemicals Pte Ltd's operations wound up will be heard before the High Court of Singapore on June 5, 2009, at 10:00 a.m. The petitioner's solicitor is: Cheryl-Ann Yeo Wen Si Messrs Pacific Law Corporation No. 133 New Bridge Road #22-02 Chinatown Point Singapore 059413 KIAN SENG: Creditors' Proofs of Debt Due on June 15 --------------------------------------------------- Kian Seng Lee (1488) Food Manufacturers Pte Ltd, which is in liquidation, requires its creditors to file their proofs of debt by June 15, 2009, to be included in the company's dividend distribution. The company's liquidator is: Don M Ho, FCPA c/o Don Ho & Associates c/o Certified Public Accountants Corporate Advisory & Recoveries Equity Plaza 20 Cecil Street #12-02 Singapore 049705 TINCEL PROPERTIES: Creditors' Proofs of Debt Due on June 25 ----------------------------------------------------------- The creditors of Tincel Properties (Private) Limited are required to file their proofs of debt by June 25, 2009, to be included in the company's dividend distribution. The company's liquidator is: Tam Chee Chong 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 VIRTUAL INNOVATIONS: Court to Hear Wind-Up Petition on June 5 ------------------------------------------------------------- A petition to have Virtual Innovations Private Limited's operations wound up will be heard before the High Court of Singapore on June 5, 2009, at 10:00 a.m. Panju Zulfikarali filed the petition against the company on May 13, 2009. The Petitioner's solicitors are: Messrs WongPartnership LLP One George Street #20-01 Singapore 049145 =============== T H A I L A N D =============== TMB BANK: Moody's Reviews Debt & Deposit Ratings for Poss. Cut -------------------------------------------------------------- Moody's Investors Service has placed the debt and deposit ratings of 11 banks in Thailand on review for possible downgrade. The banks affected are Bangkok Bank, Bank of Ayudhya, Export- Import Bank of Thailand, Government Housing Bank, Kasikornbank, Krung Thai Bank, Siam City Bank, Siam Commercial Bank, Standard Chartered Bank Thailand, TMB Bank and United Overseas Bank Thailand. "The review of their debt and deposit ratings will look at the extent to which Thailand's ability to provide support to its banking system, if needed, is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis," says Karolyn Seet, a Moody's Assistant Vice President and Analyst. "Moody's believes that most governments are at least as likely, if not more likely, to support their banking systems as they are to service their own debt -- a view that has traditionally led to bank ratings often benefiting from significant uplift due to systemic support," says Seet. "However, as the financial crisis continues, the capacity of a country and its central bank to support its banks converges with, and is increasingly constrained by, the government's own debt capacity," says Seet. In this respect, please see Moody's recent report "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries" available on www.moodys.com. "As such, Moody's will be reassessing the level of systemic support for the banks listed above to determine whether the systemic support they receive needs to be more closely aligned to the government's local currency bond rating," says Seet. Moody's will review the specific circumstances of Thailand to determine the appropriate systemic support for Thailand's bank ratings and the implications for the 11 banks that have been identified as being potentially affected. Factors that Moody's will consider in its assessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to the government's political patterns and priorities. Moody's assesses Thailand to be a high support country. This guideline takes into consideration the history of support for banks, the size, strength and the degree of fragmentation of the Thai banking system. Thai banking assets equal around 90% of GDP. Thailand's government debt, low relative to the country's GDP, is underpinned by the hardiness of the domestic banking and financial system, allowing the government a high degree of flexibility in extending support to the banking system through liquidity and capital assistance, as exemplified in the past. The banking system does not rely substantially on the supply of foreign currency to fund its operations. The credit stress evident in the Thai banking system is low relative to other Asian countries, following the worldwide economic recession and domestic political unrest. Banking system NPLs have remained rather resilient to the global downturn and have shown signs of only a gradual increase to date (approximately 0.5% on average). Thai banking system loans have experienced tepid growth in the past 10 years, and are expected to continue to grow during the course of 2009. The rating review has been prompted by the severity and longevity of the global economic crisis and the country's political turmoil -- as reflected by Moody's negative credit outlook on the Thai banking system. Over the next two years, banks are likely to experience higher credit-related write-downs, lower growth and lower revenue, which in turn may pressure the banks' current capitalization levels. With regard to political and historical patterns, necessary procedures and policy instruments to deal with banking system problems have been established and tested since the 1997 Asian Financial Crisis. In Moody's view, in case of need, support is likely to be provided for the system's banks. The support framework for problematic banks will likely aim to maintain ordinary banking functions and to avoid the liquidation of any bank. Moody's notes that the review is unlikely to lead to more than a one-notch change in the debt and deposit ratings of the institutions under review. It expects to conclude the review over the next few weeks. All other bank ratings in Thailand are not impacted by the reassessment of the systemic support level. The last rating actions for BBL, EXIMT, GHB, KBank, KTB, SCB, SCBT and UOBT, were on December 5, 2008, when the outlook of their foreign currency debt and deposit ratings was revised to negative from stable; The last rating action for BAY was on April 10, 2008 when the BFSR was upgraded to D from D-; The last rating action for KTB was on December 8, 2008, when the outlook on its D- BFSR, A3/Prime-1 local currency deposit ratings and the Baa3 rating for its preferred stock were changed to negative from stable; The last rating action for SCIB was on May 4, 2007, when its BFSR was affirmed at D. Its long-term foreign currency deposit rating was changed to Baa2 from Baa3 and short-term foreign currency deposit rating was left unchanged at P-3. Its foreign currency debt rating for senior unsecured MTN was changed to Baa2 from Baa3. Its foreign currency debt rating for subordinate MTN obligations was changed to Baa3 from Ba1; The last rating action for TMB was on June 20, 2007, when its B1 Hybrid Tier 1 securities was affirmed. These ratings were placed on review for downgrade: (i) BBL: the foreign currency long-term deposit rating of Baa1 with a negative outlook; the foreign currency short-term deposit rating of P-2 with a stable outlook; the foreign currency subordinated debt rating of Baa2 with a stable outlook; (ii) BAY: the foreign currency long-term deposit rating of Baa2; the foreign currency senior unsecured debt rating of Baa2; the foreign currency short-term deposit rating of P-2; all with a stable outlook; (iii) EXIMT: The foreign currency issuer rating of A3 with a negative outlook; (iv) GHB: the foreign currency long-term deposit rating of Baa1 with a negative outlook and the foreign currency short-term deposit rating of P-2 with a stable outlook; (v) KBank: the foreign currency long-term deposit rating of Baa1 with a negative outlook; the foreign currency short-term deposit rating of P-2 with a stable outlook; the local currency deposit ratings of A3/P-1 with stable outlooks; the foreign currency subordinated debt rating of Baa1 with a negative outlook; (vi) KTB: the foreign currency long-term deposit rating of Baa1 with a negative outlook; the foreign currency short-term deposit rating of P-2 with a stable outlook; the local currency deposit ratings of A3/P-1 with negative outlooks; the foreign currency certificate of deposit program rating of Baa1 and the foreign currency preferred stock rating of Baa3 with negative outlooks; (vii) SCIB: the foreign currency long-term deposit rating of Baa2, the foreign currency senior unsecured debt ratings of Baa2/P-3; the foreign currency subordinated debt rating of Baa3; the foreign currency short-term deposit rating of P-3; all with stable outlooks; (viii) SCB: the foreign currency long-term deposit rating of Baa1 with a negative outlook; the foreign currency short-term deposit rating of P-2 with a stable outlook; the local currency deposit ratings of A3/P-1 with stable outlooks; (ix) SCBT: the foreign currency long-term deposit rating of Baa1 with a negative outlook; the foreign currency short-term deposit rating of P-2 with a stable outlook; the foreign currency issuer ratings of A3/P-2; the local currency issuer ratings of A3/P-1; the local currency deposit ratings of A3/P-1 with stable outlooks; (x) TMB: the foreign currency long-term deposit rating of Baa2; the foreign currency short-term deposit rating of P-2; the foreign currency preferred stock rating of B1; all with stable outlooks; (xi) UOBT: the foreign currency long term deposit rating of Baa1 with a negative outlook; the foreign currency short-term deposit rating of P-2 with a stable outlook. BBL, headquartered in Bangkok, had total assets of Bt1,677 billion as of end-2008. BAY, headquartered in Bangkok, had total assets of Bt745 billion as of end-2008. EXIMT, headquartered in Bangkok, had total assets of Bt60 billion as of end-2008. GHB, headquartered in Bangkok, had total assets of Bt664 billion as of end-2008. KBank, headquartered in Bangkok, had total assets of Bt1,303 billion as of end-2008. KTB, headquartered in Bangkok, had total assets of Bt1,330 billion as of end-2008. SCIB, headquartered in Bangkok, had total assets of Bt420 billion as of end-2008. SCB, headquartered in Bangkok, had total assets of Bt1,241 billion as of end-2008. SCBT, headquartered in Bangkok, had total assets of Bt290 billion as of end-2008. TMB, headquartered in Bangkok, had total assets of Bt602 billion as of end-2008. UOBT, headquartered in Bangkok, had total assets of Bt217 billion as of end-2008. ============= V I E T N A M ============= ASIA COMMERCIAL: Moody's Puts Low-B Ratings on Review ------------------------------------------------------ Moody's Investors Service has placed the deposit and issuer ratings of four Vietnamese banks on review for possible downgrade. The banks affected are Asia Commercial Bank, Bank for Investment and Development, Techcombank and Vietnam International Bank. At the same time, Moody's has placed the bank financial strength rating of VIB on review for possible downgrade. Review Of BFSR "The review of VIB's D- BFSR will focus on the likely deterioration of the Vietnamese operating environment and its potential impact on the bank's financial fundamentals and its overall creditworthiness," says Karolyn Seet, a Moody's Assistant Vice President and Analyst. "Although currently its profitability and capital levels seem adequate, Moody's believes that these factors are likely to prove less resilient to stressed conditions than those of its D- rated peers." Moody's cautions that these factors may translate into a significant deterioration of the bank's capital adequacy and earnings generation over the course of 2009: (i) the deteriorating macro-economic environment in Vietnam, which is expected to lead to higher default rates among borrowers, (ii) the ongoing global crisis, which continues to weigh negatively on export markets, unemployment levels and property prices, and (iii) reduced profitability due to elevated credit costs, a lower interest rate environment, and weaker loan growth. In determining VIB's BFSR, Moody's will also assess its capital level after incorporating expected losses in its risk assets using scenario analysis. This approach is consistent with the Moody's special comment titled "Calibrating Bank Ratings in the Context of the Global Financial Crisis," February 2009. Review Of Debt And Deposit Ratings On the issue of government support: "The review of the banks' debt and deposit ratings will look at the extent to which Vietnam's ability to provide support to its banking system - if needed - is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis," says Seet. "Moody's believes that most governments are at least as likely, if not more likely, to support their banking systems as they are to service their own debt -- a view that has traditionally led to bank ratings often benefiting from significant uplift due to systemic support," says Seet. "However, as the financial crisis continues, the capacity of a country and its central bank to support its banks converges with, and is increasingly constrained by, the government's own debt capacity," says Seet. In this respect, please see Moody's recent report "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries" available on www.moodys.com. "As such, Moody's will be reassessing the level of systemic support for the banks listed above to determine whether the systemic support they receive needs to be more closely aligned to the government's local currency bond rating," says Seet. Moody's will review the specific circumstances of Vietnam to determine the appropriate systemic support for Vietnam's bank ratings and the implications for the four banks that have been identified as being potentially affected. Factors that Moody's will consider in its assessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to the government's political patterns and priorities. Moody's assesses Vietnam to be a medium support country. This guideline takes into consideration the history of support for banks, the size, strength and the degree of fragmentation of the Vietnamese banking system. Vietnamese banking assets equal around 120% of GDP. Vietnam's government debt, low relative to the country's GDP, is underpinned by the evolving domestic banking and financial system, allowing the government a high degree of flexibility in extending support to the banking system through liquidity and capital assistance, as exemplified in the past. The banking system does not rely substantially on the supply of foreign currency to fund its operations. The credit stress evident in the banking system is low, following the worldwide economic recession. The Vietnamese banking system's loans have experienced robust double-digit growth in the past 10 years, and are expected to continue to grow during the course of 2009. Banking system NPLs have shown signs of only a gradual increase to date (approximately 1% on average). On the down side, as a result of the high loan growth, pressure on asset quality across all asset classes is expected to continue throughout 2009 and into 2010. Banks with lower tier-1 and tangible common equity ratios and higher expected losses on their risk assets, are likely to experience more significant pressure on their BFSRs. This rating review has been prompted by the severity and longevity of the global economic crisis -- as reflected by Moody's negative credit outlook on the Vietnamese banking system. With regard to political and historical patterns, necessary procedures and policy instruments to deal with banking system problems have been established since the 1997 Asian Financial Crisis. In Moody's view, in case of need, support is likely to be provided for the system's key banks. The support framework for problematic banks aims to maintain ordinary banking functions and to avoid the liquidation of any major bank. Moody's notes that the review is unlikely to lead to more than a one-notch change in the debt and deposit ratings of ACB, BIDV and TCB. It expects to conclude the review over the next few weeks. For VIB, its BFSR review for possible downgrade is expected to be concluded within the next three months. All other bank ratings in Vietnam are not impacted by the reassessment of the systemic support level. The last rating action for BIDV and ACB was on June 4, 2008 when the rating outlook for their B1 foreign currency deposits was revised to negative from positive. The revision followed the sovereign rating action taken on the outlook for Vietnam's B1 foreign currency deposit ceiling to negative from positive; The last rating action for TCB was on June 12, 2008 when the outlook on its BFSR was changed to stable from positive; The last rating action for VIB was on July 2, 2008 when the bank's ratings were first assigned. These ratings were placed on review for possible downgrade: (i) ACB: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (ii) BIDV: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (iii) TCB: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (iv) VIB: BFSR of D-; the local currency long-term deposit rating of Ba2; the local currency long-term issuer rating of Ba2; the foreign currency long-term issuer rating of Ba2; ACB, headquartered in Ho Chi Minh City, had total assets of VND105 trillion as of end-2008. BIDV, headquartered in Hanoi, had total assets of VND242 trillion as of end-2008. TCB, headquartered in Hanoi, had total assets of VND59 trillion as of end-2008. VIB, headquartered in Hanoi, had total assets of VND35 trillion as of end-2008. BIDV: Moody's Puts Low-B Ratings on Review for Poss. Downgrade -------------------------------------------------------------- Moody's Investors Service has placed the deposit and issuer ratings of four Vietnamese banks on review for possible downgrade. The banks affected are Asia Commercial Bank, Bank for Investment and Development, Techcombank and Vietnam International Bank. At the same time, Moody's has placed the bank financial strength rating of VIB on review for possible downgrade. Review Of BFSR "The review of VIB's D- BFSR will focus on the likely deterioration of the Vietnamese operating environment and its potential impact on the bank's financial fundamentals and its overall creditworthiness," says Karolyn Seet, a Moody's Assistant Vice President and Analyst. "Although currently its profitability and capital levels seem adequate, Moody's believes that these factors are likely to prove less resilient to stressed conditions than those of its D- rated peers." Moody's cautions that these factors may translate into a significant deterioration of the bank's capital adequacy and earnings generation over the course of 2009: (i) the deteriorating macro-economic environment in Vietnam, which is expected to lead to higher default rates among borrowers, (ii) the ongoing global crisis, which continues to weigh negatively on export markets, unemployment levels and property prices, and (iii) reduced profitability due to elevated credit costs, a lower interest rate environment, and weaker loan growth. In determining VIB's BFSR, Moody's will also assess its capital level after incorporating expected losses in its risk assets using scenario analysis. This approach is consistent with the Moody's special comment titled "Calibrating Bank Ratings in the Context of the Global Financial Crisis," February 2009. Review Of Debt And Deposit Ratings On the issue of government support: "The review of the banks' debt and deposit ratings will look at the extent to which Vietnam's ability to provide support to its banking system - if needed - is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis," says Seet. "Moody's believes that most governments are at least as likely, if not more likely, to support their banking systems as they are to service their own debt -- a view that has traditionally led to bank ratings often benefiting from significant uplift due to systemic support," says Seet. "However, as the financial crisis continues, the capacity of a country and its central bank to support its banks converges with, and is increasingly constrained by, the government's own debt capacity," says Seet. In this respect, please see Moody's recent report "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries" available on www.moodys.com. "As such, Moody's will be reassessing the level of systemic support for the banks listed above to determine whether the systemic support they receive needs to be more closely aligned to the government's local currency bond rating," says Seet. Moody's will review the specific circumstances of Vietnam to determine the appropriate systemic support for Vietnam's bank ratings and the implications for the four banks that have been identified as being potentially affected. Factors that Moody's will consider in its assessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to the government's political patterns and priorities. Moody's assesses Vietnam to be a medium support country. This guideline takes into consideration the history of support for banks, the size, strength and the degree of fragmentation of the Vietnamese banking system. Vietnamese banking assets equal around 120% of GDP. Vietnam's government debt, low relative to the country's GDP, is underpinned by the evolving domestic banking and financial system, allowing the government a high degree of flexibility in extending support to the banking system through liquidity and capital assistance, as exemplified in the past. The banking system does not rely substantially on the supply of foreign currency to fund its operations. The credit stress evident in the banking system is low, following the worldwide economic recession. The Vietnamese banking system's loans have experienced robust double-digit growth in the past 10 years, and are expected to continue to grow during the course of 2009. Banking system NPLs have shown signs of only a gradual increase to date (approximately 1% on average). On the down side, as a result of the high loan growth, pressure on asset quality across all asset classes is expected to continue throughout 2009 and into 2010. Banks with lower tier-1 and tangible common equity ratios and higher expected losses on their risk assets, are likely to experience more significant pressure on their BFSRs. This rating review has been prompted by the severity and longevity of the global economic crisis -- as reflected by Moody's negative credit outlook on the Vietnamese banking system. With regard to political and historical patterns, necessary procedures and policy instruments to deal with banking system problems have been established since the 1997 Asian Financial Crisis. In Moody's view, in case of need, support is likely to be provided for the system's key banks. The support framework for problematic banks aims to maintain ordinary banking functions and to avoid the liquidation of any major bank. Moody's notes that the review is unlikely to lead to more than a one-notch change in the debt and deposit ratings of ACB, BIDV and TCB. It expects to conclude the review over the next few weeks. For VIB, its BFSR review for possible downgrade is expected to be concluded within the next three months. All other bank ratings in Vietnam are not impacted by the reassessment of the systemic support level. The last rating action for BIDV and ACB was on June 4, 2008 when the rating outlook for their B1 foreign currency deposits was revised to negative from positive. The revision followed the sovereign rating action taken on the outlook for Vietnam's B1 foreign currency deposit ceiling to negative from positive; The last rating action for TCB was on June 12, 2008 when the outlook on its BFSR was changed to stable from positive; The last rating action for VIB was on July 2, 2008 when the bank's ratings were first assigned. These ratings were placed on review for possible downgrade: (i) ACB: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (ii) BIDV: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (iii) TCB: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (iv) VIB: BFSR of D-; the local currency long-term deposit rating of Ba2; the local currency long-term issuer rating of Ba2; the foreign currency long-term issuer rating of Ba2; ACB, headquartered in Ho Chi Minh City, had total assets of VND105 trillion as of end-2008. BIDV, headquartered in Hanoi, had total assets of VND242 trillion as of end-2008. TCB, headquartered in Hanoi, had total assets of VND59 trillion as of end-2008. VIB, headquartered in Hanoi, had total assets of VND35 trillion as of end-2008. TECHCOMBANK: Moody's Puts Currency Deposit Ratings on Review ------------------------------------------------------------- Moody's Investors Service has placed the deposit and issuer ratings of four Vietnamese banks on review for possible downgrade. The banks affected are Asia Commercial Bank, Bank for Investment and Development, Techcombank and Vietnam International Bank. At the same time, Moody's has placed the bank financial strength rating of VIB on review for possible downgrade. Review Of BFSR "The review of VIB's D- BFSR will focus on the likely deterioration of the Vietnamese operating environment and its potential impact on the bank's financial fundamentals and its overall creditworthiness," says Karolyn Seet, a Moody's Assistant Vice President and Analyst. "Although currently its profitability and capital levels seem adequate, Moody's believes that these factors are likely to prove less resilient to stressed conditions than those of its D- rated peers." Moody's cautions that these factors may translate into a significant deterioration of the bank's capital adequacy and earnings generation over the course of 2009: (i) the deteriorating macro-economic environment in Vietnam, which is expected to lead to higher default rates among borrowers, (ii) the ongoing global crisis, which continues to weigh negatively on export markets, unemployment levels and property prices, and (iii) reduced profitability due to elevated credit costs, a lower interest rate environment, and weaker loan growth. In determining VIB's BFSR, Moody's will also assess its capital level after incorporating expected losses in its risk assets using scenario analysis. This approach is consistent with the Moody's special comment titled "Calibrating Bank Ratings in the Context of the Global Financial Crisis," February 2009. Review Of Debt And Deposit Ratings On the issue of government support: "The review of the banks' debt and deposit ratings will look at the extent to which Vietnam's ability to provide support to its banking system - if needed - is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis," says Seet. "Moody's believes that most governments are at least as likely, if not more likely, to support their banking systems as they are to service their own debt -- a view that has traditionally led to bank ratings often benefiting from significant uplift due to systemic support," says Seet. "However, as the financial crisis continues, the capacity of a country and its central bank to support its banks converges with, and is increasingly constrained by, the government's own debt capacity," says Seet. In this respect, please see Moody's recent report "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries" available on www.moodys.com. "As such, Moody's will be reassessing the level of systemic support for the banks listed above to determine whether the systemic support they receive needs to be more closely aligned to the government's local currency bond rating," says Seet. Moody's will review the specific circumstances of Vietnam to determine the appropriate systemic support for Vietnam's bank ratings and the implications for the four banks that have been identified as being potentially affected. Factors that Moody's will consider in its assessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to the government's political patterns and priorities. Moody's assesses Vietnam to be a medium support country. This guideline takes into consideration the history of support for banks, the size, strength and the degree of fragmentation of the Vietnamese banking system. Vietnamese banking assets equal around 120% of GDP. Vietnam's government debt, low relative to the country's GDP, is underpinned by the evolving domestic banking and financial system, allowing the government a high degree of flexibility in extending support to the banking system through liquidity and capital assistance, as exemplified in the past. The banking system does not rely substantially on the supply of foreign currency to fund its operations. The credit stress evident in the banking system is low, following the worldwide economic recession. The Vietnamese banking system's loans have experienced robust double-digit growth in the past 10 years, and are expected to continue to grow during the course of 2009. Banking system NPLs have shown signs of only a gradual increase to date (approximately 1% on average). On the down side, as a result of the high loan growth, pressure on asset quality across all asset classes is expected to continue throughout 2009 and into 2010. Banks with lower tier-1 and tangible common equity ratios and higher expected losses on their risk assets, are likely to experience more significant pressure on their BFSRs. This rating review has been prompted by the severity and longevity of the global economic crisis -- as reflected by Moody's negative credit outlook on the Vietnamese banking system. With regard to political and historical patterns, necessary procedures and policy instruments to deal with banking system problems have been established since the 1997 Asian Financial Crisis. In Moody's view, in case of need, support is likely to be provided for the system's key banks. The support framework for problematic banks aims to maintain ordinary banking functions and to avoid the liquidation of any major bank. Moody's notes that the review is unlikely to lead to more than a one-notch change in the debt and deposit ratings of ACB, BIDV and TCB. It expects to conclude the review over the next few weeks. For VIB, its BFSR review for possible downgrade is expected to be concluded within the next three months. All other bank ratings in Vietnam are not impacted by the reassessment of the systemic support level. The last rating action for BIDV and ACB was on June 4, 2008 when the rating outlook for their B1 foreign currency deposits was revised to negative from positive. The revision followed the sovereign rating action taken on the outlook for Vietnam's B1 foreign currency deposit ceiling to negative from positive; The last rating action for TCB was on June 12, 2008 when the outlook on its BFSR was changed to stable from positive; The last rating action for VIB was on July 2, 2008 when the bank's ratings were first assigned. These ratings were placed on review for possible downgrade: (i) ACB: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (ii) BIDV: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (iii) TCB: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (iv) VIB: BFSR of D-; the local currency long-term deposit rating of Ba2; the local currency long-term issuer rating of Ba2; the foreign currency long-term issuer rating of Ba2; ACB, headquartered in Ho Chi Minh City, had total assets of VND105 trillion as of end-2008. BIDV, headquartered in Hanoi, had total assets of VND242 trillion as of end-2008. TCB, headquartered in Hanoi, had total assets of VND59 trillion as of end-2008. VIB, headquartered in Hanoi, had total assets of VND35 trillion as of end-2008. VIETNAM INTERNATIONAL: Moody's Places 'D-' BFSR on Review --------------------------------------------------------- Moody's Investors Service has placed the deposit and issuer ratings of four Vietnamese banks on review for possible downgrade. The banks affected are Asia Commercial Bank, Bank for Investment and Development, Techcombank and Vietnam International Bank. At the same time, Moody's has placed the bank financial strength rating of VIB on review for possible downgrade. Review Of BFSR "The review of VIB's D- BFSR will focus on the likely deterioration of the Vietnamese operating environment and its potential impact on the bank's financial fundamentals and its overall creditworthiness," says Karolyn Seet, a Moody's Assistant Vice President and Analyst. "Although currently its profitability and capital levels seem adequate, Moody's believes that these factors are likely to prove less resilient to stressed conditions than those of its D- rated peers." Moody's cautions that these factors may translate into a significant deterioration of the bank's capital adequacy and earnings generation over the course of 2009: (i) the deteriorating macro-economic environment in Vietnam, which is expected to lead to higher default rates among borrowers, (ii) the ongoing global crisis, which continues to weigh negatively on export markets, unemployment levels and property prices, and (iii) reduced profitability due to elevated credit costs, a lower interest rate environment, and weaker loan growth. In determining VIB's BFSR, Moody's will also assess its capital level after incorporating expected losses in its risk assets using scenario analysis. This approach is consistent with the Moody's special comment titled "Calibrating Bank Ratings in the Context of the Global Financial Crisis," February 2009. Review Of Debt And Deposit Ratings On the issue of government support: "The review of the banks' debt and deposit ratings will look at the extent to which Vietnam's ability to provide support to its banking system - if needed - is converging with the government's own debt capacity as a result of the ongoing global economic and credit crisis," says Seet. "Moody's believes that most governments are at least as likely, if not more likely, to support their banking systems as they are to service their own debt -- a view that has traditionally led to bank ratings often benefiting from significant uplift due to systemic support," says Seet. "However, as the financial crisis continues, the capacity of a country and its central bank to support its banks converges with, and is increasingly constrained by, the government's own debt capacity," says Seet. In this respect, please see Moody's recent report "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries" available on www.moodys.com. "As such, Moody's will be reassessing the level of systemic support for the banks listed above to determine whether the systemic support they receive needs to be more closely aligned to the government's local currency bond rating," says Seet. Moody's will review the specific circumstances of Vietnam to determine the appropriate systemic support for Vietnam's bank ratings and the implications for the four banks that have been identified as being potentially affected. Factors that Moody's will consider in its assessment of systemic support include the size of the banking system in relation to government resources, the level of stress in the banking system, the foreign currency obligations of the banking systems relative to the government's own foreign exchange resources, and changes to the government's political patterns and priorities. Moody's assesses Vietnam to be a medium support country. This guideline takes into consideration the history of support for banks, the size, strength and the degree of fragmentation of the Vietnamese banking system. Vietnamese banking assets equal around 120% of GDP. Vietnam's government debt, low relative to the country's GDP, is underpinned by the evolving domestic banking and financial system, allowing the government a high degree of flexibility in extending support to the banking system through liquidity and capital assistance, as exemplified in the past. The banking system does not rely substantially on the supply of foreign currency to fund its operations. The credit stress evident in the banking system is low, following the worldwide economic recession. The Vietnamese banking system's loans have experienced robust double-digit growth in the past 10 years, and are expected to continue to grow during the course of 2009. Banking system NPLs have shown signs of only a gradual increase to date (approximately 1% on average). On the down side, as a result of the high loan growth, pressure on asset quality across all asset classes is expected to continue throughout 2009 and into 2010. Banks with lower tier-1 and tangible common equity ratios and higher expected losses on their risk assets, are likely to experience more significant pressure on their BFSRs. This rating review has been prompted by the severity and longevity of the global economic crisis -- as reflected by Moody's negative credit outlook on the Vietnamese banking system. With regard to political and historical patterns, necessary procedures and policy instruments to deal with banking system problems have been established since the 1997 Asian Financial Crisis. In Moody's view, in case of need, support is likely to be provided for the system's key banks. The support framework for problematic banks aims to maintain ordinary banking functions and to avoid the liquidation of any major bank. Moody's notes that the review is unlikely to lead to more than a one-notch change in the debt and deposit ratings of ACB, BIDV and TCB. It expects to conclude the review over the next few weeks. For VIB, its BFSR review for possible downgrade is expected to be concluded within the next three months. All other bank ratings in Vietnam are not impacted by the reassessment of the systemic support level. The last rating action for BIDV and ACB was on June 4, 2008 when the rating outlook for their B1 foreign currency deposits was revised to negative from positive. The revision followed the sovereign rating action taken on the outlook for Vietnam's B1 foreign currency deposit ceiling to negative from positive; The last rating action for TCB was on June 12, 2008 when the outlook on its BFSR was changed to stable from positive; The last rating action for VIB was on July 2, 2008 when the bank's ratings were first assigned. These ratings were placed on review for possible downgrade: (i) ACB: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (ii) BIDV: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (iii) TCB: the local currency long-term deposit rating of Ba1; the local currency long-term issuer rating of Ba1; the foreign currency long-term issuer rating of Ba2; (iv) VIB: BFSR of D-; the local currency long-term deposit rating of Ba2; the local currency long-term issuer rating of Ba2; the foreign currency long-term issuer rating of Ba2; ACB, headquartered in Ho Chi Minh City, had total assets of VND105 trillion as of end-2008. BIDV, headquartered in Hanoi, had total assets of VND242 trillion as of end-2008. TCB, headquartered in Hanoi, had total assets of VND59 trillion as of end-2008. VIB, headquartered in Hanoi, had total assets of VND35 trillion as of end-2008. =============== X X X X X X X X =============== * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Company Ticker Assets Equity ------- ------ ------ ------------ AUSTRALIA ADVANCE HEAL-NEW AHGN 16933460.19 -8226075.95 ADVANCE HEALTHCA AHG 16933460.19 -8226075.95 ALLOMAK LTD AMA 40685785.47 -5913422.67 ALLSTATE EXPLORA ALX 16169603.20 -50619940.96 ALLSTATE EXPL-PP ALXCC 16169603.20 -50619940.96 ANTARES ENERGY L AZZ 14174189.76 -6756494.56 ARC EXPLORATION ARX 58544299.40 -15958771.93 AUSMELT LTD AET 10421943.80 -1558622.35 AUSTAR UNITED AUN 448602007.58 -261905005.38 AUSTRAILIAN Z-PP AZCCA 77741918.88 -2566335.24 AUSTRALIAN ZIRC AZC 77741918.88 -2566335.24 BIRON APPAREL LT BIC 19706738.17 -2220069.83 BISALLOY STEEL G BIS 54556820.43 -7472108.44 CHEMEQ LIMITED CMQ 25194855.59 -24254413.72 CITY PACIFIC LTD CIY 171501648.08 -6383353.75 EIRCOM HOLDINGS ERC 7921901248.89 -381294562.59 ELLECT HOLDINGS EHG 18245003.37 -15487781.92 ETW CORP LTD ETW 83708786.34 -58673955.65 FORTESCUE METALS FMG 4293524492.00 -378456209.91 FULCRUM EQUITY L FUL 19209266.15 -3664831.35 JAMES HARDIE NV JHXCC 1827000064.00 -37500000.00 JAMES HARDIE-CDI JHX 1827000064.00 -37500000.00 LAFAYETTE MIN LAF 105239389.93 -190859526.77 MAC COMM INFR-CD MCGCD 8104415200.76 -103343256.49 MACQUARIE COMMUN MCG 8104415200.76 -103343256.49 RESIDUAL ASSC-EE RAGXF 597329874.01 -126963316.48 RUBICON AMERICA RAT 649532285.57 -100605696.94 TOOTH & CO LTD TTH 108860665.87 -69404500.26 VERTICON GROUP VGP 21729291.58 -11591492.96 VIDELLI LTD VID 78516329.21 -5679479.23 CHINA ALONG TIBET CO-A 600773 10333935.67 -913954.99 AMOI ELECTRONICS 600057 232705737.25 -54492563.65 ANHUI KOYO GROUP 000979 60298626.62 -47685854.30 BAO LONG ORIENTA 600988 15467573.79 -1560369.16 CHANG LING GROUP 000561 43077849.74 -10486820.00 CHINA EAST AIR-A 600115 10702789177.41 -1851807066.86 CHINA EAST AIR-H 670 10702789177.41 -1851807066.86 CHINA KEJIAN-A 000035 78570187.73 -180331094.29 CHINESE.COM LOGI 000805 13883647.68 -8947568.12 DANDONG CHEM F-A 000498 108580649.97 -96583109.33 DONGXIN ELECTR-A 600691 20502873.62 -3038531.89 FUJIAN SANNONG-A 000732 65238961.39 -54995633.00 DONGXIN ELECTR-A 600691 20502873.62 -3038531.89 FUJIAN SANNONG-A 000732 65238961.39 -54995633.00 GAOXIN ZHANGTO-A 002075 132630368.70 -9869752.84 GUANGDONG HUAL-A 600242 22465173.76 -2740933.18 GUANGDONG KEL-A 000921 553672005.51 -123382591.66 GUANGMING GRP -A 000587 49483133.27 -38236098.22 GUANGXI BEISHE-A 600556 127731806.69 -151971279.72 GUANGXIA YINCH-A 000557 50935704.91 -104988061.10 HEBEI BAOSHUO CO 600155 142966656.73 -343290007.70 HEBEI JINNIU C-A 600722 223470984.32 -222746304.24 HISENSE ELEC-H 921 553672005.51 -123382591.66 HUATONG TIANXI-A 600225 71967700.19 -34586375.37 HUDA TECHNOLOG-A 600892 20117117.87 -1494139.58 HUNAN ANPLAS CO 000156 51664398.17 -84057853.53 HUNAN AVA HOLDIN 000918 194225793.46 -69811133.26 JIAOZUO XIN'AN-A 000719 16467080.91 -2586535.71 MUDAN AUTOMOBI-H 8188 32224095.17 -1211266.54 QINGHAI SUNSHI-A 600381 52481259.62 -33816335.98 SHANG HONGSHENG 600817 20571020.42 -395924551.33 SHANG LIANHUA-A 600617 17393631.02 -1326976.74 SHANG LIANHUA-B 900913 17393631.02 -1326976.74 SHANG WORLDBES-A 600094 327982181.09 -175167931.11 SHANG WORLDBES-B 900940 327982181.09 -175167931.11 SHANGHAI WORLDBE 600757 228103550.88 -102348116.27 SHENZ CHINA BI-A 200017 27968310.96 -264106065.10 SHENZ CHINA BI-B 200017 27968310.96 -264106065.10 SHENZ SEG DASH-A 000007 89466024.49 -10969846.28 SHENZHEN DAWNC-A 000863 29007400.22 -151962203.17 SHENZHEN KONDA-A 000048 184040609.38 -19817331.48 SHENZHEN SHENXIN 000034 27017593.82 -165994719.64 SICHUAN DIRECT-A 000757 121583277.97 -107533583.56 SUNTEK TECHNOLOG 600728 36559320.30 -22153556.46 SUNTIME INTERN-A 600084 355378023.17 -100009910.49 TAIYUAN TIANLON 600234 13532912.36 -59849665.53 TIANJIN MARINE 600751 82399198.24 -30394356.74 TIANJIN MARINE-B 900938 82399198.24 -30394356.74 TIBET SUMMIT I-A 600338 63612758.53 -10426824.98 TOPSUN SCIENCE-A 600771 200297068.36 -121751109.77 WINOWNER GROUP C 600681 21498115.00 -81284231.50 WUHAN BOILER-B 200770 420171281.85 -31431673.83 WUHAN GUOYAO-A 600421 11572781.73 -36641609.36 XIAMEN OVERSEAS 600870 203753040.13 -161726321.55 YUEYANG HENGLI-A 000622 39549992.25 -14748281.75 ZHANGJIAJIE TO-A 000430 46479019.96 -4406094.66 HONG KONG APTUS HLDGS LTD 8212 54183295.49 -5233351.51 ASIA TELEMEDIA L 376 16618871.08 -5369335.42 CHINA HEALTHCARE 673 29513119.73 -7815705.47 CORE HEALTHCARE 8250 27890609.26 -11660364.96 EGANAGOLDPFEIL 48 557892423.39 -132858951.98 EMPEROR ENTERTAI 8078 35493733.40 -2976735.60 HUTCHISON TELE 215 2386395819.88 -363969917.68 NEW CITY CHINA 456 113178595.41 -9932226.54 PALADIN LTD 495 186461196.61 -9780904.71 PALADIN LTD -PRE 642 186461196.61 -9780904.71 SANYUAN GROUP LT 140 17768260.98 -2131329.68 INDIA ALCOBEX METALS AML 26047761.96 -22443296.68 APPLE FINANCE APL 70832103.73 -29253849.19 ARTSON ENGR ART 10310745.75 -705781.13 ASHIMA LTD ASHM 83553376.09 -43417749.51 BALAJI DISTILLER BLD 59974008.41 -50890026.26 BELLARY STEELS BSAL 512415670.40 -101442229.54 BHAGHEERATHA ENG BGEL 22646453.72 -28195273.09 CFL CAPITAL FIN CEATF 20637497.85 -48884440.84 CORE HEALTHCARE CPAR 185364966.99 -241912027.81 DIGJAM LTD DGJM 98769193.78 -14623833.58 DISH TV IND-PP DITVPP 310351828.22 -117439484.91 DISH TV INDIA DITV 310351828.22 -117439484.91 DUNCANS INDUS DAI 164653351.85 -220922929.88 GANESH BENZOPLST GBP 77840261.61 -41865917.86 GUJARAT SIDHEE GSCL 59440728.18 -660003.43 GUJARAT STATE FI GSF 30159595.18 -234918081.46 HFCL INFOTEL LTD HFCL 187858492.73 -20403289.30 HIMACHAL FUTURIS HMFC 633329926.05 -104792044.71 HINDUSTAN PHOTO HPHT 93725753.93 -1229352757.43 HMT LTD HMT 206932743.85 -263572925.12 ICDS ICDS 13300348.69 -6171079.46 IFB INDS LTD IFBI 50668510.63 -65490798.77 JCT ELECTRONICS JCTE 122542558.60 -49996834.55 JENSON & NIC LTD JN 15734678.26 -92089109.12 JK SYNTHETICS JKS 20208078.76 -2171303.89 JOG ENGINEERING VMJ 50080964.36 -10076436.07 KALYANPUR CEMENT KCEM 37538318.01 -41771703.35 LLOYDS METALS LYDM 76625324.31 -409399.15 LLOYDS STEEL IND LYDS 392561769.16 -102160401.76 MILLENNIUM BEER MLB 39726352.09 -732186.48 NATH PULP & PAP NPPM 11602126.35 -34768739.20 ORIENT PRESS LTD OP 16699814.52 -94789.33 PANCHMAHAL STEEL PMS 51024827.03 -325116.26 PANYAM CEMENTS PYC 30241162.87 -9403739.61 PARASRAMPUR SYN PPS 111971290.89 -317111727.95 PAREKH PLATINUM PKPL 61081050.43 -88849040.15 PTL ENTERPRIESES PTLE 54293986.93 -397481.92 RATHI ISPAT LTD RTIS 44555929.56 -3933592.50 REMI METALS GUJA RMM 82273746.28 -1650461.11 ROLLATAINERS LTD RLT 22965755.05 -22244556.92 ROYAL CUSHION RCVP 29192373.45 -73115309.68 RPG CABLES LTD RPG 51431409.37 -20192930.18 SEN PET INDIA LT SPEN 13283611.52 -25431862.10 SHREE RAMA MULTI SRMT 81405835.45 -64134056.23 SIL BUSINESS ENT SILB 12461159.02 -19961202.41 SPICE COMMUNICAT SPCM 263692459.52 -19679192.67 STI INDIA LTD STIB 44107456.00 -300149.59 TAMILNADU TELE TNT 11680819.22 -3373123.87 TRANS FREIGHT TFC 14196928.74 -9623049.18 TRIVENI GLASS TRSG 34542881.89 -6209872.78 UNIWORTH LTD WW 178225972.59 -131624807.91 USHA INDIA LTD USHA 12064900.61 -54512967.31 WINDSOR MACHINES WML 14500894.45 -28144999.02 WIRE AND WIRELES WNW 106984536.93 -23622538.56 INDONESIA BUKAKA TEKNIK UT BUKK 73759284.09 -88378100.23 DAYA SAKTI UNGGU DSUC 20925717.25 -12275407.90 ERATEX DJAJA ERTX 22390016.89 -5709537.72 JAKARTA KYOEI ST JKSW 23855890.79 -36519229.92 KARWELL INDONESI KARW 13459944.34 -7208303.23 MULIA INDUSTRIND MLIA 329626279.29 -438147831.29 PANCA WIRATAMA PWSI 24440350.75 -28494642.10 POLYSINDO EKA PE POLY 433818115.13 -814874663.33 SEKAR BUMI TBK SKBM 16733314.21 -2444090.09 STEADY SAFE TBK SAFE 10838828.11 -4030148.54 SURABAYA AGUNG SAIP 222819808.76 -101236552.84 TEIJIN INDONESIA TFCO 199177024.00 -55412900.00 UNITEX TBK UNTX 13522871.92 -14918402.46 JAPAN APRECIO CO LTD 2460 15981315.82 -2395526.71 ATRIUM CO LTD 8993 3004532577.65 -555330991.82 FDK CORP 6955 465071545.70 -85901797.18 G-TRADING 3348 53439073.69 -19823380.51 GREEN FOODS CO 3367 87003396.49 -48040344.74 L CREATE CO LTD 3247 42344509.56 -9146496.90 LIFE STAGE CO LT 8991 140521332.90 -4256881.43 LINK CONSULTING 4798 20858257.56 -22890695.36 LINK ONE 2403 12290544.83 -5772835.00 MORISHITA CO LTD 3594 168223801.88 -2415401.06 NESTAGE CO LTD 7633 15532484.72 -6808781.92 OPEN INTERFACE I 4302 32715547.40 -5699491.16 PION CO LTD 2799 50289757.53 -4685410.43 PLACO CO LTD 6347 26260220.44 -997325.51 SOWA JISHO CO LT 3239 54007939.02 -15643863.67 TERRANETZ CO LTD 2140 11633353.37 -4293462.63 KOREA CL LCD CO LTD 035710 55585277.13 -14793655.63 CORE INFO SYSTEM 039990 18137662.12 -7700051.48 DAHUI CO LTD 055250 186003859.24 -1504246.54 DAISHIN INFO 020180 740500919.30 -158453978.78 ELIM EDU CO LTD 046240 34029159.88 -3747735.09 FIRST FIRE & MAR 000610 2044031310.36 -1780221.91 HECENAT CO LTD 036270 26642811.85 -29463868.53 KYSYS CO LTD 015390 10671544.09 -6267111.24 MOBILINK TELECOM 041310 52665694.67 -11474605.44 MOBO CO LTD 051810 196643340.38 -11979182.85 ORICOM INC 010470 82645454.13 -40039161.33 PAXMEDU CO LTD 035500 32757713.75 -7323573.46 PRIME ENTMT 017170 31473002.90 -19371600.20 ROCKET ELEC-PFD 000425 68584186.91 -2140474.00 ROCKET ELECTRIC 000420 68584186.91 -2140474.00 SAMT CO LTD 031330 303858255.56 -77572655.65 SARACOM CO LTD 040020 26655055.92 -2791385.72 SIMM TECH CO LTD 036710 314177541.38 -34486443.29 SOLAR & TECH CO 030390 11466591.81 -588035.38 STARMAX CO LTD 017050 50131660.74 -25436154.88 TAESAN LCD CO 036210 187935112.10 -546263614.46 TONG YANG MAGIC 023020 355147750.92 -25767007.75 YOUILENSYS CORP 038720 166697877.68 -12337148.33 MALAYSIA BSA INTERNATIONA BSAI 64645666.63 -41780061.34 ENERGREEN CORP ECB 24169075.85 -33192197.50 LITYAN HLDGS BHD LIT 22219653.83 -28844509.51 NIKKO ELECTRONIC NIKKO 11848555.26 -8049133.18 PANGLOBAL BHD PGL 154526312.03 -196600884.35 PECD BHD PECD 192983533.96 -369308385.35 WONDERFUL WIRE WW 13595954.15 -12213873.19 WWE HOLDINGS BHD WWE 67986614.2 -3400656.26 NEW ZEALAND DOMINION FINANCE DFH 258902749.12 -55312405.88 PHILIPPINES APEX MINING-A APX 51256351.82 -8972145.85 APEX MINING 'B' APXB 51256351.82 -8972145.85 BENGUET CORP-A BC 76582504.46 -34018154.09 BENGUET CORP 'B' BCB 76582504.46 -34018154.09 CENTRAL AZUC TAR CAT 37806902.52 -2588843.76 CYBER BAY CORP CYBR 12926776.59 -79228223.36 EAST ASIA POWER PWR 72744279.35 -136684406.25 FIL ESTATE CORP FC 37286935.14 -11355841.65 FILSYN CORP A FYN 22000423.4 -10278638.86 FILSYN CORP. B FYNB 22000423.4 -10278638.86 GOTESCO LAND-A GO 18684576.24 -10863822.41 GOTESCO LAND-B GOB 18684576.24 -10863822.41 MRC ALLIED MRC 13040098.81 -3682026.54 PICOP RESOURCES PCP 105659068.50 -23332404.14 UNIVERSAL RIGHTF UP 45118524.67 -13478675.99 UNIWIDE HOLDINGS UW 52802040.71 -56176026.28 VICTORIAS MILL VMC 178060236.02 -36659989.09 SINGAPORE ADV SYSTEMS AUTO ASA 15738651.44 -8778195.07 CHUAN SOON HUAT CSH 35287522.69 -11167501.56 FALMAC LTD FAL 10907421.75 -5669361.14 HL GLOBAL ENTERP HLGE 92915826.56 -8391185.82 INFORMATICS EDU INFO 24731271.45 -5096073.27 LINDETEVES-JACOB LJ 160168482.84 -79374132.79 OCEAN INTERNATIO OCEAN 61659949.85 -13720313.13 SUNMOON FOOD COM SMOON 16158450.92 -13753828.36 WESTECH ELECTRON WTE 28098021.50 -12602338.58 TAIWAN CHIEN TAI CEMENT 1107 213252699.79 -8622456.43 HELIX TECHNOL-EC 2479S 29014861.50 -18177223.18 HELIX TECH-EC 2479T 29014861.50 -18177223.18 HELIX TECH-EC IS 2479U 29014861.50 -18177223.18 YEU TYAN MACHINE 8702 39574168.04 -271070409.72 THAILAND ABICO HOLDINGS ABICO 16687406.79 -9849452.81 ABICO HOLD-NVDR ABICO-R 16687406.79 -9849452.81 ABICO HLDGS-F ABICO/F 16687406.79 -9849452.81 BANGKOK RUB-NVDR BRC-R 86059276.81 -66357490.80 BANGKOK RUBBER BRC 86059276.81 -66357490.80 BANGKOK RUBBER-F BRC/F 86059276.81 -66357490.80 CENTRAL PAPER IN CPICO 10220356.04 -216074904.26 CENTRAL PAPER-NV CPICO-R 10220356.04 -216074904.26 CENTRAL PAPER-F CPICO/F 10220356.04 -216074904.26 CIRCUIT ELEC PCL CIRKIT 61295807.28 -25886476.66 CIRCUIT ELE-NVDR CIRKIT-RTB 61295807.28 -25886476.66 CIRCUIT ELEC-FRN CIRKIT/F 61295807.28 -25886476.66 DATAMAT PCL DTM 12690638.93 -6132014.29 DATAMAT PCL-NVDR DTM-R 12690638.93 -6132014.29 DATAMAT PLC-F DTM/F 12690638.93 -6132014.29 ITV PCL ITV 32184803.45 -75222598.62 ITV PCL-NVDR ITV-R 32184803.45 -75222598.62 ITV PCL-FOREIGN ITV/F 32184803.45 -75222598.62 K-TECH CONSTRUCT KTECH 83204235.85 -5693045.29 K-TECH CONTRU-R KTECH-R 83204235.85 -5693045.29 K-TECH CONSTRUCT KTECH/F 83204235.85 -5693045.29 KUANG PEI SAN POMPUI 17146363.89 -12117287.24 KUANG PEI-NVDR POMPUI-RTB 17146363.89 -12117287.24 KUANG PEI SAN-F POMPUI/F 17146363.89 -12117287.24 MALEE SAMPRAN MALEE 56829657.96 -6993880.74 MALEE SAMPR-NVDR MALEE-R 56829657.96 -6993880.74 MALEE SAMPRAN-F MALEE/F 56829657.96 -6993880.74 SAFARI WORLD PUB SAFARI 101174462.93 -16589186.57 SAFARI WORL-NVDR SAFARI-RTB 101174462.93 -16589186.57 SAFARI WORLD-FOR SAFARI/F 101174462.93 -16589186.57 SAHAMITR PRESSUR SMPC 31177710.43 -14940579.60 SAHAMITR PR-NVDR SMPC-R 31177710.43 -14940579.60 SAHAMITR PRESS-F SMPC/F 31177710.43 -14940579.60 SUNWOOD INDS PCL SUN 29427364.98 -6703524.31 SUNWOOD INDS-NVD SUN-R 29427364.98 -6703524.31 SUNWOOD INDS-F SUN/F 29427364.98 -6703524.31 THAI-DENMARK PCL DMARK 15715462.27 -10102519.69 THAI-DENMARK-F DMARK/F 15715462.27 -10102519.69 THAI-DENMARK-NVD DMARK-R 15715462.27 -10102519.69 UNIVERSAL STARCH USC 80642846.98 -54988407.82 UNIVERSAL S-NVDR USC-R 80642846.98 -54988407.82 UNIVERSAL STAR-F USC/F 80642846.98 -54988407.82 ********* 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 ***