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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, June 1, 2009, Vol. 12, No. 106
Headlines
A B U D H A B I
GOLDEN GATE: SCA Placed Firm Into Liquidation
H O N G K O N G
ART CONCORD: Court Enters Wind-Up Order
CFC DEVELOPMENT: Creditors' Proofs of Debt Due on June 12
CONTINENTAL DRAGON: Court Enters Wind-Up Order
DAI CHEONG: Court to Hear Wind-Up Petition on July 22
DE CORO: Contributories' and Creditors' Meeting Set for July 10
EXCEL WEALTHY: Court Enters Wind-Up Order
FREETRON GROUP: Court to Hear Wind-Up Petition on June 10
FREETRON LIMITED: Court to Hear Wind-Up Petition on June 17
HIP LEE: Court Enters Wind-Up Order
HONOUR JOIN: Court Enters Wind-Up Order
KAYTOM LIMITED: Court to Hear Wind-Up Petition on June 10
KING EXPRESS: Court Enters Wind-Up Order
LDB SALES: Court to Hear Wind-Up Petition on July 22
LEAD WELL: Court Enters Wind-Up Order
LEADER METRO: Court Enters Wind-Up Order
MIND FULL: Court Enters Wind-Up Order
OCEAN PROFIT: Court to Hear Wind-Up Petition on June 17
SPARKVIEW INVESTMENTS: Court Enters Wind-Up Order
TAI YUEN: Court Enters Wind-Up Order
TAMON INVESTMENT: Court Enters Wind-Up Order
WANG KWONG: Court Enters Wind-Up Order
WELL ORIENT: Court to Hear Wind-Up Petition on June 17
XPORT2CHINA MEDIA: Court to Hear Wind-Up Petition on June 24
YAT HING: Appoints Lau and Yuen as Liquidators
YUET CHOI: Pays First and Final Dividend
I N D I A
AADITIYA ASWIN: CRISIL Assigns 'B+' Rating on INR62.1 Mln LT Loan
ALOK INGOTS: Low Net Worth Prompts CRISIL 'BB+' Ratings
BERKELEY AUTOMOBILES: CRISIL Rates INR45.4 Mln Term Loan at 'B'
CAUVERY MOTORS: Limited Cash Accruals Cue CRISIL 'BB-' Ratings
CORAL REWINDING: CRISIL Puts 'B+' Rating on INR24 Mln Cash Credit
DAVANGERE SUGAR: CRISIL Rates INR489.10 Mln Cash Credit at 'BB+'
ELVE CORPORATION: Weak Financial Profile Cues CRISIL 'P4' Ratings
JESONS INDUSTRIES: Fitch Assigns 'BB' National Long-Term Rating
JET AIRWAYS: Freezes Fleet Addition; Defers Aircraft Deliveries
MA CHHINNAMASTIKA: Delay in Loan Payments Spurs CRISIL 'D' Ratings
MADHUSUDAN SPECIAL: CRISIL Rates INR14.375 Mln Term Loan at 'BB+'
METCUT TOOLINGS: CRISIL Places 'BB+' Rating on INR62.0MM Term Loan
RANBAXY LAB: U.S. Drug Regulator Reviews "Corrective Action" Plan
SATYAM COMPUTER: To Reduce Development Centers; Terminate Leases
TATA MOTORS: In Talks with Jharkhand Gov't. On Vendor Park
* Moody's Gives Stable Outlook on India's 'Ba2' Local Rating
* INDIA: Moody's May Downgrade Ratings on 13 Commercial Banks
I N D O N E S I A
ANEKA TAMBANG: Still Expects Low Prices for Nickel
INDIKA ENERGY: To Distribute IDR437 Billion of Dividend
INDIKA ENERGY: Appoints VP and Directors
J A P A N
AIFUL CORPORATION: Moody's Downgrades Senior Debt Rating to 'Ba2'
NISSHIN STEEL: To Slash Workforce by 9%; Expects Another Loss
SANYO ELECTRIC: Eyes JPY200-Bln Syndicated Loan to Payoff Debts
K O R E A
SSANGYONG MOTOR: Shuts Down Main Factory Amid Labor Strike
M A L A Y S I A
IDAMAN UNGGUL: BNM Appoints P.S. Keong to Help Manage Tahan
GOLD BRIDGE: Agrees to Extend MOU with HektarKlasik for 60 Days
PECD BERHAD: Unit's Wind-up Petition Hearing Moved to December 14
N E W Z E A L A N D
AIR NEW ZEALAND: To Cut Group Wide Capacity by Further 3%
LANE WALKER: Laid Off Workers Still Await Redundancy Payment
LOMBARD GROUP: Post NZ$1.5 Million Annual Loss
PLUS SMS: Extends Share Purchase Plan Cut-Off to June 5
N I G E R I A
FIRST CITY:S&P Affirms 'B+/B' Counterparty Credit Ratings
P A K I S T A N
HABIB BANK: Moody's Reviews 'Ba2' Currency Deposit Ratings
UNITED BANK: Moody's Puts Ba2/NP GLC Deposit Ratings on Review
P H I L I P P I N E S
NATIONAL POWER: Expects to Make Profit in 2009
S A U D I A R A B I A
AHMAD HAMAD: Misses Debt Payment on "Restructuring Exercise"
S I N G A P O R E
PRIMEPOWER SYSTEMS: Members' Final Meeting Set for June 29
- - - - -
================
A B U D H A B I
================
GOLDEN GATE: SCA Placed Firm Into Liquidation
---------------------------------------------
A judicial committee setup by official authorities in Dubai
resolved to dissolve and liquidate Golden Gate Securities, Khaleej
Times reports.
The Securities and Commodities Authority ("SCA"), according to the
report, found Golden Gate guilty of committing a series of
irregularities.
According to the report, Ghassan Al Saheb Public Accountants have
been appointed to carry out liquidation process under the
supervision of the committee. The company's creditors are
required to submit their claims to the liquidator within 45 days,
the report notes.
Golden Gate Securities a regional limited liability company
approved by Dubai Financial Market (DFM) and Abu Dhabi Stock
Market (ADSM). It specializes in brokerage services for
individual and institution.
================
H O N G K O N G
================
ART CONCORD: Court Enters Wind-Up Order
---------------------------------------
On April 28, 2009, the High Court of Hong Kong entered an order to
have Art Concord Limited's operations wound up.
Yuen Tsz Chun, Frank is the company's liquidator.
CFC DEVELOPMENT: Creditors' Proofs of Debt Due on June 12
---------------------------------------------------------
The creditors of CFC Development (Hong Kong) Company Limited are
required to file their proofs of debt by June 12, 2009, to be
included in the company's dividend distribution.
The company's liquidators are:
Kennic Lai Hang Lui
Lau Wu Kwai King Lauren
Ho Lee Commercial Building, 5th Floor
38-44 D'Aguilar Street
Central, Hong Kong
CONTINENTAL DRAGON: Court Enters Wind-Up Order
----------------------------------------------
On May 13, 2009, the High Court of Hong Kong entered an order to
have Continental Dragon Cleaning Services Limited's operations
wound up.
DAI CHEONG: Court to Hear Wind-Up Petition on July 22
-----------------------------------------------------
A petition to have Dai Cheong (Xin Hua) Printing Company Limited's
operations wound up will be heard before the High Court of
Hong Kong on July 22, 2009, at 9:30 a.m.
Ho Kwok Hung filed the petition against the company on May 8,
2009.
The Petitioner's solicitor is:
Pansy Leung Tang & Chua
Regent Centre, 21st Floor
88 Queen's Road Central
Hong Kong
DE CORO: Contributories' and Creditors' Meeting Set for July 10
---------------------------------------------------------------
The contributories and creditors of De Coro Limited will hold
their meeting on July 10, 2009, at 10:00 a.m. and 10:30 a.m.,
respectively, at 1401 Hutchison House, in 10 Harcourt Road,
Hong Kong.
EXCEL WEALTHY: Court Enters Wind-Up Order
-----------------------------------------
On May 11, 2009, the High Court of Hong Kong entered an order to
have Excel Wealthy Investment Limited's operations wound up.
FREETRON GROUP: Court to Hear Wind-Up Petition on June 10
---------------------------------------------------------
A petition to have Freetron Group Limited's operations wound up
will be heard before the High Court of Hong Kong on June 10, 2009,
at 9:30 a.m.
The Hongkong and Shanghai Banking Corporation Limited filed the
petition against the company on April 7, 2009.
The Petitioner's solicitor is:
Linklaters
Alexandra House, 10th Floor
Chater Road
Hong Kong
FREETRON LIMITED: Court to Hear Wind-Up Petition on June 17
-----------------------------------------------------------
A petition to have Freetron Limited's operations wound up will be
heard before the High Court of Hong Kong on June 17, 2009, at
9:30 a.m.
Hang Seng Bank Limited filed the petition against the company on
April 14, 2009.
The Petitioner's solicitor is:
Linklaters
Alexandra House, 10th Floor
Chater Road
Hong Kong
HIP LEE: Court Enters Wind-Up Order
-----------------------------------
On May 11, 2009, the High Court of Hong Kong entered an order to
have Hip Lee Company Limited's operations wound up.
HONOUR JOIN: Court Enters Wind-Up Order
---------------------------------------
On May 13, 2009, the High Court of Hong Kong entered an order to
have Honour Join Limited's operations wound up.
KAYTOM LIMITED: Court to Hear Wind-Up Petition on June 10
---------------------------------------------------------
A petition to have Kaytom Limited's operations wound up will be
heard before the High Court of Hong Kong on June 10, 2009, at
9:30 a.m.
The Hongkong and Shanghai Banking Corporation Limited filed the
petition against the company on April 7, 2009.
The Petitioner's solicitor is:
Linklaters
Alexandra House, 10th Floor
Chater Road
Hong Kong
KING EXPRESS: Court Enters Wind-Up Order
----------------------------------------
On May 13, 2009, the High Court of Hong Kong entered an order to
have King Express International Logistics Limited's operations
wound up.
LDB SALES: Court to Hear Wind-Up Petition on July 22
----------------------------------------------------
A petition to have LDB Sales Company Limited's operations wound up
will be heard before the High Court of Hong Kong on July 22, 2009,
at 9:30 a.m.
Germain Electronic Limited filed the petition against the company
on May 5, 2009.
The Petitioner's solicitor is:
Zeke Mok & Co.
Tower II, Lippo Centre
Room 1608
89 Queensway
Hong Kong
LEAD WELL: Court Enters Wind-Up Order
-------------------------------------
On March 30, 2009, the High Court of Hong Kong entered an order to
have Lead Well (Asia) Limited's operations wound up.
Yuen Tsz Chun, Frank is the company's liquidator.
LEADER METRO: Court Enters Wind-Up Order
----------------------------------------
On April 28, 2009, the High Court of Hong Kong entered an order to
have Leader Metro Limited's operations wound up.
Yuen Tsz Chun, Frank is the company's liquidator.
MIND FULL: Court Enters Wind-Up Order
-------------------------------------
On May 7, 2009, the High Court of Hong Kong entered an order to
have Mind Full Limited's operations wound up.
Yuen Tsz Chun, Frank is the company's liquidator.
OCEAN PROFIT: Court to Hear Wind-Up Petition on June 17
-------------------------------------------------------
A petition to have Ocean Profit Far East Limited's operations
wound up will be heard before the High Court of Hong Kong on
June 17, 2009, at 9:30 a.m.
Hang Seng Bank Limited filed the petition against the company on
April 14, 2009.
The Petitioner's solicitor is:
Linklaters
Alexandra House, 10th Floor
Chater Road
Hong Kong
SPARKVIEW INVESTMENTS: Court Enters Wind-Up Order
-------------------------------------------------
On May 13, 2009, the High Court of Hong Kong entered an order to
have Sparkview Investments Limited's operations wound up.
TAI YUEN: Court Enters Wind-Up Order
------------------------------------
On April 28, 2009, the High Court of Hong Kong entered an order to
have Tai Yuen Lin Kee Company Limited's operations wound up.
Yuen Tsz Chun, Frank is the company's liquidator.
TAMON INVESTMENT: Court Enters Wind-Up Order
--------------------------------------------
On May 13, 2009, the High Court of Hong Kong entered an order to
have Tamon Investment Limited's operations wound up.
WANG KWONG: Court Enters Wind-Up Order
--------------------------------------
On May 13, 2009, the High Court of Hong Kong entered an order to
have Wang Kwong Group Limited's operations wound up.
WELL ORIENT: Court to Hear Wind-Up Petition on June 17
------------------------------------------------------
A petition to have Well Orient International Limited's operations
wound up will be heard before the High Court of Hong Kong on
June 17, 2009, at 9:30 a.m.
Hang Seng Bank Limited filed the petition against the company on
April 14, 2009.
The Petitioner's solicitor is:
Linklaters
Alexandra House, 10th Floor
Chater Road
Hong Kong
XPORT2CHINA MEDIA: Court to Hear Wind-Up Petition on June 24
------------------------------------------------------------
A petition to have Xport2China Media Limited's operations wound up
will be heard before the High Court of Hong Kong on June 24, 2009,
at 9:30 a.m.
Poon Yau Lok filed the petition against the company on April 20,
2009.
The Petitioner's solicitor is:
Linklaters
Alexandra House, 10th Floor
Chater Road
Hong Kong
YAT HING: Appoints Lau and Yuen as Liquidators
----------------------------------------------
On April 9, 2009, Lau Wu Kwai King Lauren and Yuen Tsz Chun Frank
were appointed as liquidators of Yat Hing Poultry Limited.
The Liquidators can be reached at:
Lau Wu Kwai King Lauren
Yuen Tsz Chun Frank
Messrs. KLC Kennic Lui & Co.
Ho Lee Commercial Building, 5th Floor
38-44 D'Aguilar Street
Central, Hong Kong
YUET CHOI: Pays First and Final Dividend
----------------------------------------
Yuet Choi Limited paid the first and final dividend on May 22,
2009.
The company paid 2.567% to all received claims.
=========
I N D I A
=========
AADITIYA ASWIN: CRISIL Assigns 'B+' Rating on INR62.1 Mln LT Loan
------------------------------------------------------------------
CRISIL has assigned its rating of 'B+/Stable' to the bank
facilities of Aaditiya Aswin Paper Mills Pvt Ltd (Aaditiya Aswin).
INR62.1 Million Long Term Loan B+/Stable (Assigned)
INR30.0 Million Cash Credit Limit B+/Stable (Assigned)
The rating reflects Aaditiya Aswin's small scale of operations,
exposure to risks relating to fluctuations in paper prices, and
limited track record in the paper manufacturing business. These
weaknesses are mitigated by the company's above-average financial
risk profile, marked by healthy debt protection measures and a
moderate gearing, and the benefits that it derives from its
promoters' experience.
Outlook: Stable
CRISIL believes that Aaditiya Aswin will maintain its average
credit risk profile on the back of improving capacity utilisation
and the promoters' experience. The outlook may be revised to
'Positive' if the company scales up its operations substantially,
and strengthens its financial risk profile considerably.
Conversely, the outlook may be revised to 'Negative' if the
company reports a decline in operating margins or unexpected major
debt-funded capital expenditure.
About Aaditiya Aswin
Set up in 2006 by Mr. M Balasubramanian, Aaditiya Aswin
manufactures writing and printing paper (WPP) and newsprint (NP),
and derives 90 per cent of its revenues from sale of WPP. Its
manufacturing facilities in Sathyamangalam (Tamil Nadu) have an
installed capacity of 40 tonnes per day. The company commenced
commercial operations in April 2008.
ALOK INGOTS: Low Net Worth Prompts CRISIL 'BB+' Ratings
-------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Negative/P4' to the
various bank facilities of Alok Ingots (Mumbai) Pvt Ltd (Alok).
INR90.0 Million Cash Credit BB+/Negative (Assigned)
INR55.7 Million Term Loan BB+/Negative (Assigned)
INR40.0 Million Letter of P4 (Assigned)
Credit & Bank Guarantee
The ratings reflect the company's weak financial risk profile
marked by low net worth and high gearing, small scale of
operations in the steel billet industry, and exposure to risks
relating to expected decline in demand for billets. These
weaknesses are, however, partially offset by Alok's entry into
manufacture of specialised steel products.
Outlook: Negative
CRISIL believes that Alok will be exposed to volume and pricing
pressures on account of the ongoing economic slowdown, and the
resultant weakening in demand for steel products. The rating may
be revised downwards if Alok's capital structure deteriorates, or
if the company's profitability declines due to soft demand for its
products. The outlook may be revised to 'Stable' if, on the other
hand, the company infuses equity, thereby improving its capital
structure and if the company achieves improved profitability.
About Alok Ingots
Incorporated in July 2004, Alok manufactures steel billets, and
has an installed capacity of 43,000 tonnes per annum (tpa). The
company also produces specialised control chemistry steel products
and steel alloys — segments that have less competition and offer
higher realisations. Alok is promoted by Mr. Ashok Garodia, his
brother Mr. Deen Dayal Garodia and son Mr. Alok Garodia. The
company reported a profit after tax (PAT) of INR26.0 million on
net sales of INR779.6 million for 2007-08 (refers to financial
year, April 1 to March 31), as against a loss of INR0.3 million on
net sales of INR605.6 million for 2006-07.
BERKELEY AUTOMOBILES: CRISIL Rates INR45.4 Mln Term Loan at 'B'
---------------------------------------------------------------
CRISIL has assigned its rating of 'B/Stable' to the bank
facilities of Berkeley Automobiles Ltd (BAL).
INR80 Million Cash Credit B/Stable (Assigned)
INR290 Million Working Capital B/Stable (Assigned)
Demand Loan
INR45.4 Million Term Loan* B/Stable (Assigned)
*Includes proposed limit of INR39.4 million.
The rating reflects BAL's weak financial risk profile marked by
high gearing, and the expected pressure on the company's business
risk profile because of the current economic slowdown. These
weaknesses are mitigated by the company's established position in
the Chandigarh market.
Outlook: Stable
CRISIL expects BAL to maintain its business risk profile on the
back of its established market position. The outlook may be
revised to 'Positive' if BAL improves its capital structure or
operating margins on a sustained basis. Conversely, the outlook
may be revised to 'Negative' in case of a decline in the company's
cash accruals and profitability because of continued slowdown in
the automobile industry, or deterioration in its capital
structure.
About Berkeley Automobiles
BAL was incorporated in 2005 by Mr. Ranjeev Dahuja. BAL got its
first dealership from Maruti Suzuki India Ltd (MSIL) in June 2005
at Panchkula (Haryana). In October 2005, BAL opened another MSIL
showroom in Panchkula. Based on the performance of the Panchkula
dealership, BAL got an MSIL dealership for Chandigarh in 2006. The
company currently has three showrooms and two service stations of
MSIL.
For 2007-08 (refers to financial year, April 1 to March 31), BAL
reported a profit after tax of INR9.4 million on net revenues of
INR1836 million, against INR5 million and INR1362 million,
respectively, in the previous year.
CAUVERY MOTORS: Limited Cash Accruals Cue CRISIL 'BB-' Ratings
--------------------------------------------------------------
CRISIL has assigned its rating of 'BB-/Stable' to the bank
facilities of Cauvery Motors Pvt Ltd (CMPL).
INR20.00 Million Long Term Loan BB-/Stable (Assigned)
INR45.00 Million Cash Credit BB-/Stable (Assigned)
(The above facilities are with State Bank of India)
The rating reflects CMPL's weak financial risk profile, marked by
limited cash accruals and a relatively low net worth. The rating
also factors in the adverse impact of the current economic
slowdown on the company's revenue and profitability. These
weaknesses are mitigated by CMPL's established presence in the
automobile dealership market, and its improving revenue mix.
Outlook: Stable
CRISIL expects CMPL to maintain its favourable business risk
profile backed by its established position as a dealer of Ford
cars. The outlook may be revised to 'Positive' if CMPL improves
its scale of operations. Conversely, the outlook may be revised
to 'Negative' in case of a steep decline in the company's revenues
and profitability because of the economic slowdown, or if the
company undertakes a large, debt-funded capital expenditure
programme.
About Cauvery Motors
CMPL started operations in 1996 in Bengaluru, as one of the first
dealers of Ford cars in India. The company has three showrooms
and seven service centres across Karnataka and Tamil Nadu. CMPL
reported a profit after tax of INR4 million on net sales of
INR1.7 billion for 2007-08 (refers to financial year, April 1 to
March 31), against INR6 million and INR2 billion, respectively,
for 2006-07.
CORAL REWINDING: CRISIL Puts 'B+' Rating on INR24 Mln Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its ratings of 'B+/Stable/P4' to the bank
facilities of Coral Rewinding India Pvt Ltd (Coral Rewinding).
INR24 Million Cash Credit B+/Stable (Assigned)
INR62.5 Million Long Term Loan B+/Stable (Assigned)
INR10 Million Bank Guarantee P4 (Assigned)
The ratings reflect Coral Rewinding's small scale of operations in
the coil rewinding business, low net worth, and exposure to
fluctuations in copper prices. These weaknesses are mitigated by
the company's established market presence, in the coil rewinding
business, and its comfortable financial risk profile marked by
healthy debt protection measures and above-average gearing.
Outlook: Stable
CRISIL believes that Coral Rewinding will maintain its stable
business risk profile on the back of its established market
presence. The outlook may be revised to 'Positive' if the company
scales up its operations, while maintaining its profitability and
debt protection measures. Conversely, the outlook may be revised
to 'Negative' if the profit margins decline steeply or if the
company undertakes large, debt-funded capital expenditure, leading
to deterioration in its capital structure and debt protection
measures.
About Coral Rewinding
Set up in 1979 by Mr. P Rajarajan in Erode as a sole
proprietorship firm, Coral Rewinding was converted into a closely
held private limited company in 2006. It provides coil rewinding
services for motors and generators used by paper and sugar mills
and cement plants; it is also an authorised service centre for
products manufactured by Kirloskar Electric Company Ltd, Siemens
Ltd (AAA/Stable/P1+), and Bharat Bijlee Ltd.
Coral Rewinding reported a profit after tax (PAT) of INR5.67
million on net sales of INR92.18 million for 2007-08 (refers to
financial year, April 1 to March 31), as against a PAT of INR0.5
million on net sales of INR48.31 million for 2006-07.
DAVANGERE SUGAR: CRISIL Rates INR489.10 Mln Cash Credit at 'BB+'
----------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank
facilities of Davangere Sugar Company Ltd (DSCL).
INR489.10 Million Cash Credit BB+/Stable (Assigned)
INR440.00 Million Letter of Credit P4 (Assigned)
The ratings reflect DSCL's below-average financial risk profile
marked by high gearing, and its exposure to risks relating to
cyclicality in the sugar industry and to unfavourable changes in
government regulations. These weaknesses are mitigated by DSCL's
diversified revenue base, following forward integration
initiatives.
Outlook: Stable
CRISIL believes that DSCL will maintain a moderate business risk
profile, driven by revenue diversity achieved through power
generation. The outlook may be revised to 'Positive' if strong
cash accruals lead to improvement in DSCL's financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
DSCL undertakes large, debt-funded capital expenditure, or reports
lower-than-expected cash flows from power generation, or if non-
availability of sugarcane leads to increased input costs or low
capacity utilisation for the company.
About Davangere Sugar
Incorporated in 1970, DSCL manufactures white sugar, and has
capacity to crush 3500 tonnes of cane per day. The company has
forward integrated into co-generation of power, and has capacity
to generate 24.45 mega watts of power. DSCL reported a profit
after tax (PAT) of INR40 million on net sales of INR1.2 billion
for 2007-08 (refers to financial year, April 1 to March 31), as
against a PAT of INR50 million on net sales of INR980 million for
2006-07.
ELVE CORPORATION: Weak Financial Profile Cues CRISIL 'P4' Ratings
-----------------------------------------------------------------
CRISIL has assigned its rating of 'P4' to the bank facilities of
Elve Corporation (Elve).
INR110.00 Million Bill Discounting P4 (Assigned)
INR75.00 Million Packing Credit P4 (Assigned)
INR40.00 Million Letter of Credit P4 (Assigned)
The rating reflects Elve's weak financial profile, marked by
recurring losses, high gearing, and low net worth, and exposure to
risks relating to fluctuations in raw material prices and foreign
exchange rates. These weaknesses are, however, partially offset
by the benefits that the firm derives from its established
presence in the automobile replacement gears industry.
As part of this rating exercise, CRISIL has combined the business
and financial risk profiles of Elve, Gajra Gears Pvt Ltd (Gajra
Gears), and Gajra Differential Gears Pvt Ltd (Gajra Differential
Gears), together referred to as the Gajra group. This is because
all the entities are in the same line of business and are commonly
owned by the same promoter group. Also, there are significant
inter-party transactions within the group. Elve procures around 90
per cent of its raw material and finished goods requirement from
Gajra Gears and Gajra Differential Gears. Consequently, sales to
Elve account for around 45 per cent and 30 per cent of the
revenues of Gajra Gears and Gajra Differential Gears,
respectively.
About the Group
The Gajra group set up Gajra Gears in 1962, and Gajra Differential
Gears in 1991. Gajra Gears manufactures automobile transmission
gears and offers around 1700 types of gears for the major
commercial vehicle brands. It offers transmission gears, engine
gears, oil pump gears, automatic transmission parts, gear box
assemblies and castings. Its manufacturing plant at Dewas (Madhya
Pradesh) has capacity to produce around 4200 tonnes of gear
components per annum. Gajra Differential Gears manufactures a
wide range of crown wheel and pinions, bevel gears, bevel pinions,
spider kit assemblies, and differential cages for commercial
vehicles. Its manufacturing plant at Dewas, Madhya Pradesh has
capacity to produce around 3200 tonnes of automobile gears per
annum.
The Gajra group reported a net loss of INR144 million on sales of
INR1,637 million for 2007-08 (refers to financial year, April 1 to
March 31), as against a net loss of INR43 million on sales of
INR1,484 million for 2006-07.
About Elve Corporation
Elve is part of the Gajra group. In 1950, the group set up Elve
as a partnership firm for trading in diesel engines and spares.
It exports automobile transmission gears and differential gears,
which it procures from Gajra Gears and Gajra Differential Gears.
The firm sells to around 14 countries including USA, Canada,
Germany, UK, and Malaysia.
JESONS INDUSTRIES: Fitch Assigns 'BB' National Long-Term Rating
---------------------------------------------------------------
Fitch Ratings has assigned India's Jesons Industries Limited a
National Long-term rating of 'BB(ind)' with a Stable Outlook.
Fitch has also assigned ratings of 'BB(ind)' to JIL's INR184.6
million long-term bank loans and INR245 million cash credit
facilities, and a rating of 'F4(ind)' to its INR555 million short-
term bank loan facility.
The ratings reflect JIL's leadership position in the pressure
sensitive adhesive market, as well as its diversified presence in
the rubber-based adhesives, pigments and emulsions business with
low revenue concentration. Competition from imports is low given
the high cost of importing the finished product due to the added
bulkiness of the products. The PSA and pigments are supplied to
packing tapes manufacturers while rubber-based adhesives are
supplied to manufacturers of shoes, furniture etc. The emulsions
are supplied to paint manufacturers, which provide better margins.
Fitch notes that these segments have limited market size and
profitability, which results in limited competition from bigger
players. Moreover, given its leadership position in the PSA, JIL
is able to get scale advantage in raw material procurement.
Recently, JIL has launched a consumer adhesive by the name "Blue
Glue" -- although this market is highly competitive, the margins
are much better. As such, JIL has planned a total capex of 30m
for the "Blue Glue" project to do brand building.
The ratings remain constrained by the working capital intensive
nature of the business, low margins and JIL's dependence on
imported raw materials like butyl acrylate and vinyl acrylate
monomers (these are derivatives of crude oil and are produced only
by a limited number of companies worldwide, leading to the high
costs). Over the past six to eight months, there have been
fluctuations in both the raw material prices and foreign currency
rates, which together with increased receivables, have led to
considerable liquidity stress for JIL. However, although Fitch
expects that the liquidity of JIL will still remain stretched in
the next six months, the agency believes conditions will be better
than what prevailed in FY09. Fitch views that more than
anticipated capex in the "Blue Glue" project and/or working
capital pressure emanating from increased receivables leading to a
leverage above 6.0x and/or interest cover EBITDA/Interest below
1.5x on a sustained basis, will lead to a downward trigger of the
rating.
JIL is promoted by the Gosalia family, which is in the business of
manufacturing industrial adhesives and emulsions; recently it has
entered into consumer adhesive segment as well. The company has
manufacturing plants in Daman and Roorkee with a total
manufacturing capacity of 75000 TPA. Its revenues in FY08
increased to INR1907 million mainly due to an increase in
capacity, although the EBITDA margins were flat at 6.2% when
compared to FY07. In FY08, the EBITDA/ton was about INR3500/ton
compared to INR5000/ton in FY07, due to the lower proportion of
rubber based adhesives in the revenue. As per the unaudited
FY09 results, revenues were down 7% YoY to INR1758 million from
INR1907 million in FY08 due to lower demand, while the EBITDA
margins were down to 3.2% in FY09 compared to 6.2% in FY08 due to
higher raw material prices. The interest coverage also dropped to
1.0x in FY09 compared to 3.4x in FY08 due to higher working
capital requirements.
JET AIRWAYS: Freezes Fleet Addition; Defers Aircraft Deliveries
---------------------------------------------------------------
The Economic Times reported that Jet Airways (India) Ltd has
decided to put a freeze on the addition of new fleet, apart from
postponing future aircraft deliveries for two years.
"There will be no addition of fleet with the operating remaining
the same in the current financial year. We will expand our fleet
once operation stabilise," the report quoted Jet Airways chief
executive officer Wolfgang Prock-Schauer as saying.
Jet Airways operates a fleet of 86 aircraft that includes Boeing,
Airbus and ATR, the report discloses. Out of these, 38 are owned
by Jet with the other 48 being leased. The Jet-JetLite combine
has a total fleet of 110 aircraft.
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.
Jet Airways (India) Ltd (BOM:532617) -- http://www.jetairways.com/
-- is engaged in providing air transportation business. The
geographic segments of the Company are domestic (air
transportation within India) and international (air transportation
outside India). The Company has a frequent flyer programme named
Jet Privilege wherein the passengers who uses the services of the
airline become services of the airline become members of Jet
Privilege and accumulates miles to their credit. 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.
MA CHHINNAMASTIKA: Delay in Loan Payments Spurs CRISIL 'D' Ratings
------------------------------------------------------------------
CRISIL has assigned its bank loan ratings of 'D/P5' to the various
bank facilities of Ma Chhinnamastika Steel & Power Ltd (MCSPL).
INR120 Million Cash Credit D (Assigned)
INR320 Million Term Loan@ D (Assigned)
INR80 Million Packing Credit * P5 (Assigned)
INR10 Million Bank Guarantee P5 (Assigned)
*Interchangeable with Foreign Document Bank Purchase (FDBP).
@ Includes a proposed facility of INR 27.9 Million
The ratings reflect continuing delays by MCSPL in repayment of
term loan obligations.above-average financial risk profile.
About MCPSL
Incorporated in October 2001 by Mr. Pradip Bhardwaj, MCSPL
manufactures sponge iron, which is used as raw material in the
manufacture of steel ingots and billets. In 2002, the company set
up a steel plant in Purulia District, West Bengal. In 2005-06
(refers to financial year, April 1 to March 31), MCSPL
commissioned a new sponge iron kiln. Currently the company has
sponge iron capacity of 90,000 million tonnes per annum (mtpa).
For 2007-08, MCSPL reported a profit after tax (PAT) of INR9.8
million on operating income of INR599 million, as against a PAT of
INR30 million on operating income of INR 442 million for 2006-07.
MADHUSUDAN SPECIAL: CRISIL Rates INR14.375 Mln Term Loan at 'BB+'
-----------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable' to the bank
facilities of Madhusudan Special Section Pvt Ltd (MSSPL).
INR50.00 Million Cash Credit BB+/Stable (Assigned)
INR14.375 Million Term Loan BB+/Stable (Assigned)
The ratings reflect MSSPL's small scale of, and lack of backward
integration in, operations, in the highly-fragmented and
competitive structural steel industry, limited financial
flexibility owing to low net worth, and vulnerability of the
company's operating margins to fluctuations in raw material
prices. These weaknesses are mitigated by the benefits the
company derives from its comfortable regional presence in the
structural steel industry, backed by its promoters' experience in
both the domestic and export markets, and by its low gearing and
comfortable debt protection measures.
Outlook: Stable
CRISIL expects MSSPL to maintain its comfortable regional presence
in the structural steel segment. The outlook may be revised to
'Positive' if MSSPL improves its scale of operations and net worth
significantly. Conversely, the outlook may be revised to
'Negative' if MSSPL undertakes any large, debt-funded capital
expenditure, or faces significant pressure on its revenues and
margins, leading to deterioration in its financial risk profile.
About Madhusudan Special
Set up as a partnership firm in 1970, MSSPL was converted to a
private limited company in 1990. In 1997, Mr. Shivjibhai Patel
sold the company to Mr. Shyam Raghwani and Mr. Laljibhai Meghani.
MSSPL manufactures structural steel products such as sections,
bars, tees, and angles. Its manufacturing facility at Ahmedabad,
Gujarat, has a capacity of 12,000 tonnes per annum.
MSSPL reported a profit after tax (PAT) of INR18.69 million on net
sales of INR363.81 million for 2007-08 (refers to financial year,
April 1 to March 31), as against a PAT of INR10.22 million on net
sales of INR271.48 million for 2006-07.
METCUT TOOLINGS: CRISIL Places 'BB+' Rating on INR62.0MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable' to the bank
facilities of Metcut Toolings Pvt Ltd (MTPL).
INR35.5 Million Cash Credit BB+/Stable (Assigned)
INR62.0 Million Term Loan * BB+/Stable (Assigned)
* Includes a proposed limit of INR21.5 million
The ratings reflect MTPL's moderate financial risk profile marked
by low net worth and below-average debt protection measures, small
scale of operations, and exposure to risks relating to intense
competition in the carbide cutting tools industry. These
weaknesses are partially offset by MTPL's healthy operating
efficiencies and diversified end-user industry base.
Outlook: Stable
CRISIL believes that MTPL will maintain stable business and
financial risk profiles over the medium term on the back of
healthy profitability and its established customer base. The
outlook may be revised to 'Positive' if the company registers
higher revenue growth and improves its net worth significantly.
Conversely, the outlook may be revised to 'Negative' if the
current economic slowdown results in significant decline in the
company's revenues or profitability, thereby leading to
deterioration in its financial risk profile.
About Metcut Toolings
Incorporated in 1989, MTPL is engaged in the manufacture of
carbide cutting tools which are used in industries such as
automotives and defence. The company deals in both standard and
customised tools, and provides complete cutting solutions. Its
plant in Karnataka has capacity to manufacture 50,000 components
per annum. The company also undertakes servicing of tools on job
work basis for its customers. MTPL reported a profit after tax
(PAT) of INR6.6 million on net sales of INR103 million for 2007-08
(refers to financial year, April 1 to March 31), as against a PAT
of INR6.7 million on net sales of INR82 million for 2006-07.
RANBAXY LAB: U.S. Drug Regulator Reviews "Corrective Action" Plan
-----------------------------------------------------------------
Catherine Larkin and Saikat Chatterjee at Bloomberg News reported
that the U.S. Food & Drug Administration said it received Ranbaxy
Laboratories Ltd.'s "corrective action" plan on May 18 and is
reviewing the plan after some medicines from the company's plants
in the South Asian nation were barred from being exported to the
U.S.
"The FDA is working very closely with the firm to ensure that all
the Ranbaxy products currently in the U.S. market are safe and
effective," FDA spokesman Christopher Kelly said in an e-mail
obtained by Bloomberg News. "The next steps will be dependent on
the actions identified" in the plan, he said.
U.S. Investigations
As reported in the Troubled Company Reporter-Asia Pacific on
March 3, 2009, the U.S. Food and Drug Administration said that a
facility owned by Ranbaxy Laboratories falsified data and test
results in approved and pending drug applications. The facility,
which is located in Paonta Sahib, India, has been under an FDA
Import Alert since September 2008. In a press statement, the FDA
disclosed it is continuing to investigate the matter to ensure the
safety and efficacy of marketed drugs associated with Ranbaxy's
Paonta Sahib site. To date, the FDA has no evidence that these
drugs do not meet their quality specifications and has not
identified any health risks associated with currently marketed
Ranbaxy products.
In July 2008, the TCR-AP reported that the U.S. Department of
Justice conducted a probe on Ranbaxy for allegedly bringing
adulterated and misbranded medications into the U.S. Accordingly,
the DOJ sought court permission to access privilege records of
Ranbaxy's internal audits and operations.
Ranbaxy, which derived 24% of its 2007's revenue in the U.S.,
denied the allegations.
In September 2008, sale of more than 30 Ranbaxy generic medicines
manufactured in its Dewas and Paonta Sahib plants in India were
blocked by the U.S. Food and Drug Administration due to
deficiencies in manufacturing processes, a TCR-AP report said.
Separately, a Sept. 26, 2008 TCR-AP report said the United States
President's Emergency Plan for AIDS Relief suspended funding for
three generic AIDS drugs made by Ranbaxy until deficiencies at its
plants are cleared. The three Ranbaxy drugs are zidovudine,
lamivudine and nevirapine. The program, which provided
US$8.9 million for Ranbaxy's AIDS drugs last fiscal year, said it
won't use funds to support new orders, according to Bloomberg
News.
On Oct. 10, 2008, the TCR-AP reported that the DOJ dropped its
legal action against Ranbaxy after the Indian drug maker handed
over documents relating to the regulators' concerns over its
manufacturing.
About Ranbaxy Laboratories
Ranbaxy Laboratories Limited -- http://www.ranbaxy.com/-- along
with its subsidiaries and associates, operates as an integrated
international pharmaceutical organization with businesses
encompassing the entire value chain in the production, marketing
and distribution of dosage forms and active pharmaceutical
ingredients. It has manufacturing facilities in 11 countries,
namely Brazil, China, India, Ireland, Japan, Malaysia, Nigeria,
Romania, South Africa, the United States and Vietnam. Its major
markets include the United States, India, Europe, Russia / CIS,
Brazil and South Africa. The major products include, inter alia,
Simvastatin, CoAmoxyclav, Amoxycillin, Ciprofloxacin, Isotretinon
and Cephalexin. Its research and development activities are
principally carried out at its facilities in Gurgaon, near New
Delhi, India. The company's segments include Pharmaceuticals and
Other businesses. In November 2008, Daiichi Sankyo Co., Ltd.
completed the takeover of RLL by buying a 63.9% stake.
SATYAM COMPUTER: To Reduce Development Centers; Terminate Leases
----------------------------------------------------------------
Satyam Computer Services Limited is evaluating options to downsize
operations at its overseas development centres and terminate lease
contracts for offices and other properties, The Hindu Business
Line reports.
The report, citing two persons close to the development, says
Satyam will be able to increase capacity utilisation and also
reduce overhead costs through consolidation of its offices and
delivery infrastructure.
"The concept of global delivery centres is good but all delivery
centres and offices will be right-sized both in terms of people
and physical infrastructure," one of the source told Business
Line.
This review of operations is part of Operation Phoenix, Tech
Mahindra Limited's plan of resurrecting Satyam, the Business Lines
states.
According to the report, another official said that Satyam is
likely to consolidate sales operations in the US as a section of
customers based there has severed ties with the company. The
report notes that the company has 14 offices in the U.S.
"We have identified several rented premises whose lease will be
terminated to provide sizeable savings. This space is anyway in
excess and was invested based on anticipated growth," the report
cited Mr. A. S. Murthy, Chief Executive Officer of Satyam, as
saying in an e-mail.
Satyam has seven development centres in China, Germany, Brazil,
Egypt and Malaysia, which act as near-shore destinations for
getting work done in the same time zone as places such as the US
and the UK, the Business Line discloses.
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: In Talks with Jharkhand Gov't. On Vendor Park
----------------------------------------------------------
Tata Motors Limited is in talks with the Jharkhand government to
acquire 300 acres of land in Jamshedpur to set up a vendor park, a
report posted in newkerala.com says.
The report, citing S B Borwankar, Head of the Tata Motor's
Jamshedpur plant, says though the state government had formally
signed an MoU on the allotment of land for Tata Motors, there is
no further moment despite company officials having discussions
with bureacrats.
The Economic Times relates that Tata Motors launched last week a
new range of premium trucks called the ‘World Truck’. The
product, the Times states, has been jointly developed by Tata
Motors and its two subsidiaries - Tata Daewoo Commercial Vehicle
Company in South Korea and the Tata Motors European Technical
Centre in the UK.
Tata Motors, which has made an investment of Rs 1,000 crore in
developing the world truck, would make its Jamshedpur plant the
main production centre for its new series of trucks, newkerala.com
relates.
The new most modern production line which would have an annual
capacity of 55,000 vehicles can ultimately reach a capacity of
150,000 vehicles a year, Mr. P M Telang, Executive Director of C
ommercial Vehicles Division of Tata Motors was cited by
newkerala.com as saying.
About Tata Motors
India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the company. The company's operating segments consists of
Automotive and Others. In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations. TML is listed on the Bombay Stock
Exchange, the National Stock Exchange of India and New York
Stock Exchange. It was ultimately 33.4% owned by the Tata Group
as of December 2007.
Tata Motors has operations in Russia and the United Kingdom.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
March 27, 2009, Standard & Poor's Ratings Services lowered its
corporate credit rating on India-based automaker Tata Motors Ltd.
to 'B+' from 'BB-'. The rating remains on CreditWatch with
negative implications, where it was placed on Dec. 12, 2008. At
the same time, S&P lowered its issue rating on the company's
senior unsecured notes to 'B+' from 'BB-' and also kept the rating
on CreditWatch with negative implications.
S&P said the rating action follows material deterioration in Tata
Motors' cash flows and related metrics on a consolidated basis,
derived from an adverse operating environment, which, combined
with significantly high debt levels, will affect its credit
protection measures beyond those consistent with a 'BB' rating
category.
* Moody's Gives Stable Outlook on India's 'Ba2' Local Rating
------------------------------------------------------------
In a new report, Moody's Investors Service says that its ratings
outlook for the Indian government's Baa3 foreign currency rating
and Ba2 local currency rating is stable, but the country at the
same time faces various challenges in the areas of macroeconomic
management and a backlog of structural reforms.
"India's ratings are based on Moody's assessment of the country's
moderate levels of economic and institutional strength that in
turn are supported by a large, rapidly growing, and well-
diversified economic structure," says Aninda Mitra, a Moody's Vice
President and Senior Analyst.
"Moreover, in comparison to many Ba-rated or Baa-rated countries,
India has a wide range of formal institutions and administrative
mechanisms to enact policies and regulations," says Mitra
"However, the country's track record of overall macro-policy
effectiveness is modest, while fiscal policy predictability and
credibility have deteriorated recently in absolute and relative
terms," says Mitra.
"Although external shocks have played a role, India's poor fiscal
fundamentals result from a deeply entrenched framework of
subsidies and the government's relatively weak expenditure
restraint," he added
"Our assessment of the government's low financial strength is also
premised on its poor debt affordability and fiscal space," says
Mitra, "but a comfortable external position and favorable debt
structure limits imminent risks," he added.
Mitra was speaking in conjunction with the release of the Moody's
report -- which he authored -- on India's sovereign ratings.
The report's key arguments include the constraint exerted on
India's economic potential by domestic imbalances and financial
fragilities; the risk posed to economic performance by the
confluence of potentially weak external liquidity and the
persistence of government deficits; and how improvements in the
government's financial strength have for now halted.
The new Moody's report also highlights that by and large economic
liberalization and de-licensing have facilitated a strong
productivity response and resulted in greater competition,
capacity building, and growth in several industry sectors.
However, in the aftermath of external shocks and a rising general
government debt overhang, India's medium-term prospects would
require more than (unconventional) short-term monetary
accommodation, and were increasingly contingent on fiscal
consolidation and structural reforms.
"Moreover, there is a low likelihood of economic or financial
shocks, and India also has an enormous capacity to absorb
political shocks," says Mitra.
* INDIA: Moody's May Downgrade Ratings on 13 Commercial Banks
-------------------------------------------------------------
Moody's Investors Service has placed the ratings of 13 Indian
commercial banks on review for possible downgrade in light of its
global review of systemic support indicators for the banking
systems.
Moody's previously used the local currency deposit ceiling as the
main input for its assessment of the ability of a national
government to support its banks. Although anchoring the
probability of support at the LCDC is appropriate in many
circumstances -- regarding the provision of liquidity to a
selected number of institutions over a short period of time --
this might overestimate the capacity of a central bank to support
financial institutions in the event of a banking crisis becoming
both truly systemic and protracted. This approach is outlined in
the Special Comment entitled "Financial Crisis More Closely Aligns
Bank Credit Risk and Government Ratings in Non-Aaa Countries",
which was published in May 2009.
The review of the local currency deposit ratings will look at the
extent to which India'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. Moody's will refine its assessment of systemic support
available from the Indian government to capture the impact of the
erosion of the local economy's underlying credit fundamentals and
the reduced fiscal policy flexibility on the government's ability
to support the banking sector.
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 system relative to
the government's own foreign exchange resources and changes to the
government's political patterns.
These rating actions were taken:
(i) State Bank of India's A1/P-1 GLC deposit ratings were placed
on review for downgrade. The FC subordinated (Lower Tier 2),
junior subordinated (Upper Tier 2) and perpetual hybrid Tier 1
ratings of Baa2 under its MTN programme were also placed on review
for downgrade.
All the other ratings, including the C- BFSR (mapping to a Baa2
baseline credit assessment -- BCA), Ba2/NP FC deposit ratings
(constrained by the FC deposit sovereign ceiling) and Baa2 FC
senior unsecured debt rating under its MTN programme, remain
unchanged with a stable outlook.
(ii) ICICI Bank's A2/P-1 GLC deposit ratings were placed on review
for downgrade. The FC subordinated (Lower Tier 2), junior
subordinated (Upper Tier 2) and perpetual hybrid Tier 1 ratings of
Baa2 under its MTN programme were also placed on review for
downgrade.
All the other ratings, including the C- BFSR (mapping to a Baa2
BCA), Ba2/NP FC deposit ratings (constrained by the FC deposit
sovereign ceiling) and Baa2 FC senior unsecured debt rating under
its MTN programme, remain unchanged with a stable outlook.
(iii) Punjab National Bank's A2/P-1 GLC deposit ratings were
placed on review for downgrade. All the other ratings, including
the D+ BFSR (mapping to a Baa3 BCA), Ba2/NP FC deposit ratings
(constrained by the FC deposit sovereign ceiling) and Baa2 FC debt
issuer rating, remain unchanged with a stable outlook.
(iv) Bank of Baroda's A3/P-1 GLC deposit ratings were placed on
review for downgrade. The Baa2 FC subordinated (Lower Tier 2) and
junior subordinated (Upper Tier 2) ratings and the Baa3 perpetual
hybrid Tier 1 rating under its MTN programme were also placed on
review for downgrade.
All the other ratings, including the D+ BFSR (mapping to a Ba1
BCA), Ba2/NP FC deposit ratings (constrained by the FC deposit
sovereign ceiling) and Baa2 FC senior unsecured debt rating under
its MTN programme, remain unchanged with a stable outlook.
(v) Bank of India's A3/P-1 GLC deposit ratings were placed on
review for downgrade. The Baa2 FC subordinated (Lower Tier 2) and
junior subordinated (Upper Tier 2) ratings and the Baa3 perpetual
hybrid Tier 1 rating under its MTN programme were also placed on
review for downgrade.
All the other ratings, including the D+ BFSR (mapping to a Ba1
BCA), Ba2/NP FC deposit ratings (constrained by the FC deposit
sovereign ceiling) and Baa2 FC senior unsecured debt rating under
its MTN programme, remain unchanged with a stable outlook.
(vi) Canara Bank's A2/P-1 GLC deposit ratings were placed on
review for downgrade. The Baa2 FC subordinated (Lower Tier 2),
junior subordinated (Upper Tier 2) and perpetual hybrid Tier 1
ratings under its MTN programme were also placed on review for
downgrade.
All the other ratings, including the D+ BFSR (mapping to a Baa3
BCA), Ba2/NP FC deposit ratings (constrained by the FC deposit
sovereign ceiling) and Baa2 FC senior unsecured debt rating under
its MTN programme, remain unchanged with a stable outlook.
(vii) HDFC Bank's A3/P-1 GLC deposit ratings were placed on review
for downgrade. The Baa2 FC subordinated (Lower Tier 2), junior
subordinated (Upper Tier 2) and perpetual hybrid Tier 1 ratings
under its MTN programme were also placed on review for downgrade.
All the other ratings, including the C- BFSR (mapping to a Baa2
BCA), Ba2/NP FC deposit ratings (constrained by the FC deposit
sovereign ceiling) and Baa2 FC senior unsecured debt rating under
its MTN programme, remain unchanged with a stable outlook.
(viii) IDBI Bank's GLC Baa2/P-2 deposit ratings were placed on
review for downgrade. The Baa2 FC senior debt rating was also
placed on review for downgrade.
All the other ratings, including the D- BFSR (mapping to a Ba3
BCA) and Ba2/NP FC deposit ratings (constrained by the FC deposit
sovereign ceiling), remain unchanged with a stable outlook.
(ix) Union Bank of India's A3/P-1 GLC deposit ratings were placed
on review for downgrade. The Baa2 FC subordinated (Lower Tier 2)
and junior subordinated (Upper Tier 2) ratings and the Baa3
perpetual hybrid Tier 1 rating under its MTN programme were also
placed on review for downgrade.
All the other ratings, including the D+ BFSR (mapping to a Ba1
BCA), Ba2/NP FC deposit ratings (constrained by the FC deposit
sovereign ceiling) and Baa2 FC senior unsecured debt rating under
its MTN programme, remain unchanged with a stable outlook.
(x) Axis Bank's A3/P-1 GLC deposit ratings were placed on review
for downgrade. The Baa2 FC subordinated (Lower Tier 2), junior
subordinated (Upper Tier 2) and perpetual hybrid Tier 1 ratings
under its MTN programme were also placed on review for downgrade.
All the other ratings, including the C- BFSR (mapping to a Baa2
BCA), Ba2/NP FC deposit ratings (constrained by the FC deposit
sovereign ceiling) and Baa2 FC senior unsecured debt rating under
its MTN programme, remain unchanged with a stable outlook.
(xi) Central Bank of India's Baa2/P-2 GLC deposit ratings were
placed on review for downgrade. All the other ratings, including
the D- BFSR (mapping to a Ba3 BCA) and Ba2/NP FC deposit ratings
(constrained by the FC deposit sovereign ceiling), remain
unchanged with a stable outlook.
(xii) Syndicate Bank's A3/P-1 GLC deposit ratings were placed on
review for downgrade. All the other ratings, including the D+
BFSR (mapping to a Ba1 BCA) and Ba2/NP FC deposit ratings
(constrained by the FC deposit sovereign ceiling), remain
unchanged with a stable outlook, except for the BFSR, which
continues to carry a negative outlook.
(xiii) Oriental Bank of Commerce's GLC A3/P-1 deposit ratings were
placed on review for downgrade. All the other ratings, including
the D+ BFSR (mapping to a Ba1 BCA) and Ba2/NP FC deposit ratings
(constrained by the FC deposit sovereign ceiling), remain
unchanged with a stable outlook, except for the BFSR, which
continues to carry a negative outlook.
The last rating action on State Bank of India was taken in
April 2007 when its BFSR was upgraded to C- from D+.
The last rating action on ICICI Bank Ltd was taken in
November 2008 when its BCA was changed to Baa2 from Baa1.
The last rating action on Punjab National Bank was taken in
April 2007 when its BFSR was upgraded to D+ from D.
The last rating action on Bank of Baroda was taken in April 2007
when its BFSR was upgraded to D+ from D.
The last rating action on Bank of India was taken in April 2007
when its BFSR was upgraded to D+ from D.
The last rating action on Canara Bank was taken in January 2009
when the outlook on its A2/P-1 GLC deposit ratings was changed to
negative from stable.
The last rating action on HDFC Bank Ltd was taken in March 2008
when its GLC deposit ratings were upgraded to A3/P-1 from
Baa1/P-2.
The last rating action on IDBI Bank was taken in April 2007 when
its BFSR was affirmed at D-.
The last rating action on Union Bank of India was taken in April
2007 when its BFSR was upgraded to D+ from D-.
The last rating action on Axis Bank Ltd was taken in April 2007
when its BFSR was upgraded to C- from D+.
The last rating action on Central Bank of India was taken in
April 2007 when its BFSR was upgraded to D- from E+.
The last rating action on Syndicate Bank was taken in January 2009
when the outlook on its D+ BFSR was changed to negative from
stable.
The last rating action on Oriental Bank of Commerce was taken in
January 2009 when the outlook on its D+ BFSR was changed to
negative from stable.
State Bank of India, headquartered in Mumbai, had assets of
INR9,644 billion (US$184.8 billion) as of end-March 2009.
ICICI Bank Ltd, headquartered in Mumbai, had assets of
INR3,793 billion (US$72.7 billion) as of end-March 2009.
Punjab National Bank, headquartered in New Delhi, had assets of
INR2,469 billion (US$47.3 billion) as of end-March 2009.
Bank of Baroda, headquartered in Mumbai, had assets of
INR2,274 billion (US$43.6 billion) as of end-March 2009.
Bank of India, headquartered in Mumbai, had assets of
INR2,255 billion (US$43.2 billion) as of end-March 2009.
Canara Bank, headquartered in Bangalore, had assets of
INR2,175 billion (US$41.7 billion) as of end-March 2009.
HDFC Bank Ltd, headquartered in Mumbai, had assets of
INR1,833 billion (US$35.1 billion) as of end-March 2009.
IDBI Bank Ltd, headquartered in Mumbai, had assets of
INR1,724 billion (US$33 billion) as of end-March 2009.
Union Bank of India, headquartered in Mumbai, had assets of
INR1,610 billion (US$30.9 billion) as of end-March 2009.
Axis Bank Ltd, headquartered in Mumbai, had assets of
INR1,477 billion (US$28.3 billion) as of end-March 2009.
Central Bank of India, headquartered in Mumbai, had assets of
INR1,338 billion (US$27.2 billion) as of end-December 2008.
Syndicate Bank, headquartered in Bangalore, had assets of
INR1,303 billion (US$25 billion) as of end-March 2009.
Oriental Bank of Commerce, headquartered in New Delhi, had assets
of INR1,126 billion (US$21.6 billion) as of end-March 2009.
=================
I N D O N E S I A
=================
ANEKA TAMBANG: Still Expects Low Prices for Nickel
--------------------------------------------------
PT Aneka Tambang (Antam) expects that the prices of nickel will be
relatively stagnant at around US$6 per pound until the year-end,
not far away from around US$5.5 per pound currently, Jakarta Post
reports citing Antam's President Director Alwinsyah Loebis.
The US$6 per pound prices will be lower than the average prices of
the metal in 2008, when prices stood at US$9.9 per pound, the
report recounts. Moreover the 2008 figure already represented a
37% decline from 2007, The Post relates.
According to the report, despite the relatively low nickel prices,
Antam decided against revising its output target for this year,
which has been set at 12,000 tons of nickel.
The company is thus embarking on cost-cutting measures to enable
it to squeeze out profits amid tighter margins, 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.
INDIKA ENERGY: To Distribute IDR437 Billion of Dividend
-------------------------------------------------------
The shareholders of PT Indika Energy have approved the
distribution of dividends worth IDR84 per share, Jakarta Post
reports.
According to the report, the dividend is equal to IDR437 billion
(US$42 million) or 40.3% of the company's 2008 net profit.
The company posted IDR1.08 trillion net profit last year, The Post
noted.
Established in 2002, Indika is a privately-owned investment
holding company with two major investment assets - a 46% stake in
Kideco and a 100% stake in Tripatra.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
March 4, 2009, Fitch Ratings affirmed PT Indika Energy Tbk's Long-
term foreign and local currency Issuer Default Ratings at 'B',
following the company's announcement on February 26, 2009 that it
plans to acquire a 81.95% stake in PT Petrosea Tbk (an engineering
and construction contractor with mining capability) for an
indicative purchase price of US$83.8 million. The Outlook remains
Positive. Fitch also affirmed its 'B' senior unsecured rating on
Indika's US$250 million senior notes due in 2012, with a recovery
rating of 'RR4'.
INDIKA ENERGY: Appoints VP and Directors
----------------------------------------
During the annual meeting, the shareholders of PT Indika Energy
agreed to promote Wishnu Wardhana as the company's vice president,
The Jakarta Post reports.
On the other hand, Richard Bruce Ness and Eddy Junaedy Danu were
appointed as the company's directors, the report adds.
Established in 2002, Indika is a privately-owned investment
holding company with two major investment assets - a 46% stake in
Kideco and a 100% stake in Tripatra.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
March 4, 2009, Fitch Ratings affirmed PT Indika Energy Tbk's Long-
term foreign and local currency Issuer Default Ratings at 'B',
following the company's announcement on February 26, 2009 that it
plans to acquire a 81.95% stake in PT Petrosea Tbk (an engineering
and construction contractor with mining capability) for an
indicative purchase price of US$83.8 million. The Outlook remains
Positive. Fitch also affirmed its 'B' senior unsecured rating on
Indika's US$250 million senior notes due in 2012, with a recovery
rating of 'RR4'.
=========
J A P A N
=========
AIFUL CORPORATION: Moody's Downgrades Senior Debt Rating to 'Ba2'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the long-term senior
unsecured debt rating and issuer rating of Aiful Corporation to
Ba2 from Baa3 and assigned a negative outlook.
This action concludes the review initiated on March 5, 2009, and
incorporates Moody's revision to its stress simulation assumptions
for the consumer loan specialists, and a concomitant re-assessment
of Aiful's stand-alone financial strengths.
Since June 2007, Moody's has monitored the difference between the
simulation's annualized three-year "risk chunk" and the rated
firms' annual overpaid interest claims cash out plus write-offs,
including the impact of loan amount caps, as well as changes in
ROA, to verify their progress in stabilizing operations, given the
severe operating environment. Through its monitoring, Moody's has
confirmed the sufficiency of the rated firms' risk tolerance thus
far. The number of overpaid interest claims filed has been high
since the latter half of 2007, but since actual losses have been
within the risk estimate, Moody's view that the companies'
reserves are sufficient to cover the estimated risk remains the
same.
However, the filing of overpaid interest claims may continue for
some time, for these reasons: (1) given the practical
difficulties, the rated companies' portfolios will not be
completely "cleaned up" (of the assets subject to an interest rate
over 18%) immediately after full enforcement of the revised Money-
Lending Business Control and Regulation Law; (2) of the claims
filed, the number of those already paid out is growing, suggesting
that the filing of claims may decline, even though they will
likely continue even after full enforcement; (3) a campaign by
legal and judicial advocates that encourages borrowers to file
claims will likely continue until at least full enforcement; and
(4) given the ongoing downturn in the economy, more borrowers may
become financially distressed and file claims.
In light of these concerns, Moody's has taken a "conservative"
approach -- conservative in that the assumptions are set at a
level sufficient to provide all around coverage -- in adjusting
the risk chunk. Specifically, Moody's added 1.5 years to the
original three, reflecting the assumption that the filing of
claims will continue for one to two years after full enforcement.
The revised risk chunk may seem overly stressed, given that the
original stress assumptions and actual losses have been lower than
the annualized risk chunk -- in the process providing a buffer for
remaining risk. However, given the growing uncertainty over the
regulatory environment, as well as the weakening environment for
financial institutions, Moody's believes the adjustment is
reasonably conservative.
Moody's has also revised several of its simulation assumptions,
including the one for top-line revenue, which reflects the rated
firms' conservative lending stance. The revisions also reflect
the restructuring cost effects the rated companies have achieved,
which had not previously been incorporated.
The rating downgrade reflects Moody's view that Aiful's current
reserves are not sufficient to fully cover the revised risk chunk,
which could negatively impact the company's profitability-- hence,
the concern over the lengthening process to stabilize operations.
In Moody's view, Aiful has also become even more stringent in
extending loans, viz. downsizing of its operation, where the
overall market has been shrinking, the associated decline in
revenue could give rise to downward pressures on the franchise
over the medium term.
In addition, in light of the lengthened stabilizing process,
Moody's is of the view that the company's less flexible funding
profile may pose a challenge to management given the increasingly
severe operating environment, not just for Aiful but also for
financial institutions in general. Its funding and liquidity
remains less flexible, as 1) the number of domestic borrowing
sources is limited, 2) debt duration is relatively shorter than
that of its peers, and 3) the market's appetite to provide funding
through credit facilities with covenants is limited.
Moody's retains its negative ratings outlook, based on the view
that operating stabilization may take longer than expected if the
number of overpaid interest claims remains high, and that the
company's reserves are insufficient to cover the revised risk
chunk in full. The negative outlook also incorporates the
constraints to funding in a persistently severe operating
environment.
Given the need for closely monitoring the actual changes on
borrowers' debt relief, the prospect of the rated firms facing
upward rating pressure is limited.
Downward triggers include 1) ongoing, consistently high declines
in the reserves compared to Moody's revised risk chunk --
resulting from actual losses (due to claims cash out and write-
offs, including additional credit costs emerging from LAC) -- or
declines that increase to a point that risk coverage is further
jeopardized; 2) deterioration in the process of stabilizing
operations -- in other words, a lack of improvement in ROA because
the dynamic between top-line revenue and broadly defined credit
costs, including claims cash out, has not stabilized; and 3) a
lack of material improvement in funding flexibility, such that the
company's operations are harmed further.
The ratings outlook may revert to stable if Aiful can demonstrate
that its operating stabilization is evolving smoothly -- more
specifically, that it is improving its risk tolerance -- and that
it is also improving its funding profile.
Moody's will soon publish a Special Comment elaborating its
revised simulation assumptions for Japan's consumer loan
specialists, including Aiful.
Moody's last rating action with respect to Aiful was taken on
March 5, 2009, when the long-term senior unsecured debt rating and
issuer rating were downgraded to Baa3 from Baa2 and placed under
further review for possible downgrade.
Aiful's rating was assigned by evaluating factors Moody's believe
are relevant to its credit profile, such as franchise value, risk
positioning, operating and regulatory environment, and financial
fundamentals versus its competitors, as well as the company's
projected performance in the near to medium term. These
attributes were compared to those of other issuers both inside and
outside its core industry. Thus, Moody's believes Aiful's rating
to be comparable to those of other issuers with similar credit
risk.
Aiful Corporation, headquartered in Kyoto, was established in
1967. It is a major specialized consumer finance company in
Japan, with about JPY1.6 trillion in total assets on a
consolidated basis as of March 31, 2009.
NISSHIN STEEL: To Slash Workforce by 9%; Expects Another Loss
-------------------------------------------------------------
Nisshin Steel Co. plans to shed 9 percent of its workforce, or
about 350 jobs, by 2011 through natural attrition due to a serious
decline in demand, Antara News reports.
According to the report, the reduction will affect administrative
positions, which total about 1,450 of the firm's present work
force of 3,700 or so.
Nisshin Steel expects to incur a JPY51 billion net loss for the
year ending March 2010, wider than the JPY25.5 billion net loss
incurred in the previous year.
Nisshin Steel Co., Ltd. -- http://www.nisshin-steel.co.jp-- is a
Japan-based steel manufacturer. The Company is primarily engaged
in the manufacture and sale of steel products. The Company also
provides materials to its subsidiaries, which are engaged in the
manufacture of steel products. N isshin Steel has subsidiaries and
associated companies, which are involved in the manufacture,
processing and sale of steel products, stainless steel products,
metal finishing products, as well as the collection of information
and the provision of other services. The Company has 38 group
companies.
SANYO ELECTRIC: Eyes JPY200-Bln Syndicated Loan to Payoff Debts
---------------------------------------------------------------
Sanyo Electric Co. said it will take out a syndicated loan of
JPY200 billion to partly invest in a hybrid car battery factory
and pay off outstanding loans, The Japan Times reports citing
Kyodo News.
The Japanese electronics maker, according to the report, signed an
agreement with a syndicate of banks led by Sumitomo Mitsui Banking
Corp.
The report says Sanyo plans to spend JPY70 billion to finance its
envisioned capital outlays for a range of battery projects,
including those associated with solar cell production and the
lithium-ion batteries used in hybrid motor vehicles.
The company also plans to spend JPY50 billion to redeem bonds and
JPY80 billion to pay off outstanding loans, the report adds.
Headquartered in Osaka, Japan, Sanyo Electric Co. Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
November 14, 2008, Fitch Ratings placed Sanyo Electric Co. Ltd.'s
'BB+' Long-term foreign and local currency IDRs and senior
unsecured ratings on Rating Watch Positive.
=========
K O R E A
=========
SSANGYONG MOTOR: Shuts Down Main Factory Amid Labor Strike
----------------------------------------------------------
JoongAng Daily reported that Ssangyong Motor Co. closed its main
factory in Pyeongtaek, Gyeonggi Province, on Sunday, May 31. The
Daily says the move came in response to the ongoing labor strike
against the company's plans to lay off around 36 percent of its
workforce.
The Korea Times relates that the company, which has been refusing
to talk with union officials, said it will request police
intervention should the workers refuse to leave the plant.
"The lockout was an inevitable decision, as the union has been
blocking office personnel from entering the Pyeongtaek factory and
forcing a complete halt of industrial activities since the strike
started on May 21. We concluded that the business losses related
to these actions were severe enough to threaten the company's
survival," the Times cited Ssangyon in a statement.
According to the Daily, Ssangyong hopes to receive KRW250 billion
(US$199.5 million) in new loans by cutting its workforce and
offering its main plant in Pyeongtaek as collateral.
"It was inevitable," the Daiyl quoted Lee Yoo-il, one of two
court-appointed managers at Ssangyong, as saying. "The company
will do its utmost to normalize management through rapid
completion of restructuring and stabilizing labor-management
relations."
The Troubled Company Reporter-Asia Pacific, citing The Auto
Channel, reported on May 25, 2009, that a South Korean court
approved Ssangyong Motor Co's restructuring plan.
The Auto Channel said the court confirmed a recent Samil
PricewaterhouseCoopers assessment that the manufacturer had a
greater value as a going concern than its liquidated value, and
ordered Ssangyong to submit its full restructuring plan by mid-
September.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 12, 2009, the International Herald Tribune said Ssangyong
filed for receivership with a Seoul district court in a bid to
stave off a complete collapse. The Tribune related that the
decision to file for receivership, which is similar to bankruptcy
protection in the United States, came a day after the Ssangyong
board met in Shanghai. "After our talks with the banks failed to
produce an agreement, it became inevitable to file for court
receivership to ease the critical cash flow problem," the company
said in a statement obtained by the Tribune.
On Feb. 6, 2009, the TCR-AP, citing the International Herald
Tribune, reported that court spokesman Hong Jun-ho said the Seoul
Central District Court accepted Ssangyong's application to
rehabilitate under court protection. Mr. Hong said the court
named former Hyundai Motor Co. executive Lee Yoo-il and Ssangyong
executive Park Young-tae to run the automaker, the Tribune
related.
About Ssangyong Motor
Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co.
Ltd. -- http://www.smotor.com/-- is a manufacturer of automobiles
primarily engaged in production of sports utility vehicles (SUVs)
and recreational vehicles (RVs). The company's production is
grouped into four lines: SUVs under brand names REXTON, KYRON and
ACTYON; sports utility trucks (SUTs) under the brand name ACTYON
Sports; passenger cars under brand name Chairman, and multi-
purpose vehicles (MPVs) under the brand name Rodius. It also
provides automobile parts such as coolers, diesel engines and
others.
===============
M A L A Y S I A
===============
IDAMAN UNGGUL: BNM Appoints P.S. Keong to Help Manage Tahan
-----------------------------------------------------------
Bank Negara Malaysia has appointed Mr. Phoon Soon Keong, an
Executive Director of PricewaterhouseCoopers Capital Sdn. Bhd., to
assist Idaman Unggul Berhad in managing the property, business and
affairs of Tahan Insurance Malaysia Berhad, a wholly owned
subsidiary of the company.
Idaman Unggul Berhad is an investment holding company, whose
principal activity is the provision of corporate, administrative
and management support to its subsidiaries. The company
operates in two segments: insurance, which includes underwriting
of life insurance and all classes of general insurance business,
and other, which includes investment holding. Idaman Unggul's
subsidiaries include Tahan Insurance Malaysia Berhad, F.T. Land
Sdn. Bhd., PCM Synergy Sdn. Bhd., PICT Solution Sdn. Bhd. and
Straight Effort Sdn. Bhd. On July 12, 2006, the company
disposed Advanced Electronics (M) Sdn. Bhd. to Elevale Temasek
Sdn. Bhd. On July 3, 2006, Tahan Insurance Malaysia Berhad
disposed of its Life Insurance Business to AXA Affin Life
Insurance Berhad. Waikiki Beach Hotel Sdn. Bhd., a wholly owned
subsidiary of Idaman Unggul, was also divested as part of the
Life Insurance Business disposal. On January 17, 2007, the
company disposed IUB Asset Management Sdn Bhd to Capital
Intelligence Holdings Sdn Bhd.
* * *
As reported by Troubled Company Reporter-Asia Pacific on
March 6, 2008, the company was classified as an Affected
Listed Issuer under Amended Practice Note 17/2005 of the Listing
Requirements of Bursa Malaysia Securities Berhad, since the
company's shareholders' fund has dropped to MYR41.204 million
which is lower than the 25% of the paid-up share capital and
minimum issued and paid up capital of MYR60 milion required
under the Listing Requirements.
GOLD BRIDGE: Agrees to Extend MOU with HektarKlasik for 60 Days
---------------------------------------------------------------
As reported in the Troubled Company Reporter-Asia Pacific on
December 16, 2009, Gold Bridge Engineering & Construction Berhad
disclosed that its wholly owned subsidiary, Aseania Development
Sdn Bhd (ADSB), entered into a Memorandum of Understanding (MOU)
with HektarKlasik Sdn Bhd to a joint venture to invest in, manage
and operate a 3-storey shopping complex together with a basement
floor upon the terms and conditions as may be agreed by Hektar and
ADSB.
The Shopping Mall was developed and constructed by a wholly owned
subsidiary of D'Aseania Mall Sdn Bhd on all that piece of land
held under HSM 378, Mukim 07, PT802, Daerah Seberang Perai Tengah,
Negeri Pulau Pinang.
Hektar and ADSB have agreed to enter into the MOU to define the
basic terms of the Proposed Joint Venture and to regulate their
interest in D'Aseania.
In an update, Gold Bridge said it has agreed to extend the said
MOU for a further period of sixty (60) days from the last date of
expiry, May 24, 2009.
About Gold Bridge
Headquartered in Kuala Lumpur, Malaysia, Gold Bridge Engineering
& Construction Berhad develops residential and commercial
properties and provision of civil engineering and general
construction services. The Company's other activities include
boat building and repairing of ships, manufacturing and
supplying of ready-mixed concrete and provision of related
services, management of golf and beach resort and investment
holding. Operations are carried out principally in Malaysia.
The Company has incurred losses in the past. It also defaulted
on several loan facilities, which caused it to fall under Bursa
Malaysia Securities Berhad's Practice Note 1/2001 category.
* * *
For the fiscal year ended June 30, 2008, Gold Bridge Engineering
Berhad reported a MYR1.65 million loss after tax, which is
substantially lower than the preceding year's loss of MYR49.73
million. The reduction was mainly due to the substantial
reduction in impairment losses, provision for doubtful debts and
other operating expenses.
Gold Bridge Engineering Berhad is currently listed as an affected
listed issuer under the an Amended Practice Note No. 17/2005 List
of Companies of the Bursa Malaysia Securities Bhd, and is
therefore required to submit a regularization plan.
PECD BERHAD: Unit's Wind-up Petition Hearing Moved to December 14
-----------------------------------------------------------------
PECD Berhad said the winding-up petition by Pembinaan Jurubina
Sdn. Bhd. against PECD Construction Sdn. Bhd., the company's
subsidiary, which was fixed for hearing on Feb. 12, 2009, had been
further adjourned to December 14, 2009.
As reported in the Troubled Company Reporter-Asia Pacific on
July 7, 2008, PECD Berhad disclosed that the company's subsidiary,
PECD Construction Sdn Bhd, received a wind-up petition from
Pembinaan Jurubina Sdn Bhd.
Pembinaan claimed for a sum MYR379,724.89, the alleged amount
owed by PECD Construction.
Circumstances Leading to
Filing of the Petition
PECD Construction received a notice on March 26, 2008, from
Pembinaan's solicitors, Messrs. Kamaruddin & Partners, demanding
payment of MYR379,724.89, being monies allegedly due and owing
under the Pemindahan Air dari Sungai Muar ke Empangan Talang,
Kuala Pilah Negeri Sembilan Darul Khusus project.
The petition was presented when payments 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
====================
AIR NEW ZEALAND: To Cut Group Wide Capacity by Further 3%
---------------------------------------------------------
Air New Zealand said it would cut its group wide capacity for the
2010 financial year by a further three percent in response to
reducing demand as consumers tighten their belts in the face of
the global economic recession.
Air New Zealand said it has entered discussions with unions on how
to minimize any potential job losses from the cuts, which come off
the back of the difficult demand environment confronting the
airline for the next six months.
The airline will reduce its Hong Kong to London service from daily
to five-days-a-week from mid-October. It would also reduce
frequency on some domestic routes serviced by the regional
airlines.
A review of crewing requirements to meet existing customer demand
has identified a potential surplus of up to 40 cabin crew and
pilots in regional airline and domestic jet operations, the
airline said.
There may be a further loss of around 40 airport handling roles in
Auckland and Christchurch as a result of Qantas terminating its
domestic services.
Air New Zealand said it will be strongly lobbying the Government
over coming weeks to increase its funding for tourism promotion.
The airline shares in the widespread industry disappointment that
the Government is yet to increase its support for New Zealand’s
number one export earner.
"While Air New Zealand continues to spend in excess of
NZ$100 million selling and marketing New Zealand and Air New
Zealand overseas, the severe economic conditions and increased
budgets from competing destinations are reducing the impact of the
airline’s efforts," Air New Zealand said.
About Air New Zealand
Based in Auckland, New Zealand, Air New Zealand Ltd --
http://www.airnewzealand.com/--is the country's flag air carrier,
with domestic and international passenger and freight operations,
and an aviation engineering business. Air New Zealand flies to
the United States, United Kingdom, Canada, Europe and other Asian
cities.
* * *
As of May 11, 2009, Air New Zealand Ltd continues to carry Moody's
Investor's Service "Ba1" Senior Unsecured Issuer rating with
stable outlook.
LANE WALKER: Laid Off Workers Still Await Redundancy Payment
------------------------------------------------------------
Laid off workers at Lane Walker Rudkin (LWR) are yet to see any
redundancy money, two weeks after losing their jobs, The New
Zealand Herald reports citing the National Distribution Union
(NDU).
According to the report, NDU president Robert Reid said that the
first payments to union members since then were not from the
receivers, the Government or the company's bankers Westpac but
from union trust funds and public donations.
"This is a horrendous week without any income at all for these
people. That is why the union is making payments to workers from
its own funds and public donations," the Herald quoted Mr. Reid as
saying.
Mr. Reid, as cited by the Herald, said most workers were owed
holiday pay and redundancy pay around the cap of NZ$16,420 but
none of that was guaranteed.
As reported in the Troubled Company Reporter-Asia Pacific on
May 15, 2009, The Press said the LWR receivers made 186 workers
redundant. According to the Press, closures and consequent
redundancies were announced at LWR's clothing factories in
Pahiatua (19 jobs) on May 14 and Greytown (61 jobs) and
Christchurch (102 jobs) on May 15. Four Auckland sales workers
were also affected, the Press noted.
The TCR-AP reported on April 30, 2009, that hundreds of staff are
facing uncertain future as Lane Walker Rudkin Industries went into
receivership with debt of more than NZ$50 million.
In a press statement released on April 28, BDO Spicers disclosed
that Brian Mayo-Smith and Stephen Tubbs, partners at the firm,
have been appointed joint receivers and managers of LWR. The
appointment was made by LWR's bankers to protect the financial
position of LWR and its subsidiary Pod while issues facing the
group are resolved. The LWR operations are currently unprofitable
and have incurred a substantial increase in bank debt.
Lane Walker Rudkin Industries Limited (LWR) --
http://www.lwr.co.nz/history.htm-- is a diversified manufacturer
of clothing and textiles with operations in several locations in
New Zealand and Australia. Approximately 470 people are employed
in textile, hosiery, underwear and garment factories in
Christchurch; garment manufacture in Greytown and Pahiatua; a sock
factory in Timaru; and a sports apparel factory in Brisbane. Its
subsidiary Pod comprises fabric maker Designer Textiles
International, clothing designer and manufacturer Michele Ann and
Mollers Homewares, all located in Auckland. The group is owned
by Christchurch businessman Ken Anderson, who purchased LWR in
2001 and Pod in 2007.
LOMBARD GROUP: Post NZ$1.5 Million Annual Loss
----------------------------------------------
Lombard Group Ltd disclosed it unaudited consolidated financial
results for the year ended March 31, 2009.
The unaudited consolidated pro-forma after-tax result for the year
ended March 31, 2009 is a loss of NZ$1.5 million. This includes
an impairment loss of NZ$1.43 million resulting from the write
down of goodwill on the acquisition of United Home Mortgages
Limited and an additional impairment of the secured debenture
stock held by the parent company in its subsidiary (in
receivership) of NZ$0.26 million.
Recognizing the fundamentally changed economic environment, the
Board has elected to impair all of the goodwill on the acquisition
of United Home Mortgages Limited.
The Board has resolved that no dividend be declared.
Headquartered in Wellington, New Zealand, Lombard Group Limited
(NZE:LOM) -- http://www.lombardgroup.co.nz/-- is primarily
engaged in the provision of finance to small and medium-sized
businesses for a range of purposes. In March 2008, the Company’s
wholly owned subsidiary, Lombard Mortgages Limited, acquired the
remaining 30% interest in Tasman Mortgages Limited. Tasman
Mortgages Limited is a mortgage arranger and mortgage broking
company. Lombard Mortgages operates as a mortgage broker. The
Company’s principal subsidiary is Lombard Finance & Investments
Limited.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
July 10, 2008, Lombard Group said that its financial performance
for the year ended March 31, 2008, has been dramatically affected
by the receivership of the Group's significant subsidiary, Lombard
Finance & Investments Limited, which occurred on April 10, 2008.
While the audited Group result is a loss of NZ$3.26 million, the
Board recognizes that does not reflect the full impact of the
receivership.
PLUS SMS: Extends Share Purchase Plan Cut-Off to June 5
-------------------------------------------------------
The National Business Review reported that Plus SMS Holdings Ltd
has again extended the closing date for its share purchase plan
for a third time to June 5.
The company initially made 1.2 million shares available on
April 14 until May 5, however, Plus SMS had moved the cut-off
date for applying out to May 19 and then moved it to May 29,
according to a Troubled Company Reporter-Asia Pacific report on
May 21, 2009.
Under the offer, the Business Review noted, eligible shareholders
can buy between NZ$500 and NZ$5000 worth of ordinary shares at a
64.4 percent discount to the price that prevailed between
February 11 and March 24.
The Business Review related that the NZ$626,084 Plus SMS hoped to
get for selling the shares, would "fund the company's working
capital and continued product development."
Plus SMS Holdings Ltd. (NZX: PLS) -- http://www.cre-eight.com/
-- along with its subsidiaries, is principally engaged in the
provision of mobile entertainment and network services. Some of
its wholly owned subsidiaries include CRE8 Limited, which is
engaged in content and network services; Content Technology, S A
De C V, which is engaged in content services, and CRE8
Consultoria, which is engaged in administration services.
* * *
The company incurred three consecutive net losses of NZ$6.96
million, NZ$11.89 million, and NZ$4.49 million for the financial
years ended March 31, 2008, 2007 and 2006, respectively.
=============
N I G E R I A
=============
FIRST CITY:S&P Affirms 'B+/B' Counterparty Credit Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
'ngA-/ngA-2' long- and short-term Nigeria national scale ratings
to First City Monument Bank. At the same time, the 'B+/B'
counterparty credit ratings were affirmed. The outlook remains
stable.
The ratings on FCMB reflect the high credit risks from rapid
lending growth in 2008 and deteriorating asset-quality indicators,
the short-term funding profile, and inherently high economic and
industry risks of operating in the Federal Republic of Nigeria
(Nigeria; foreign currency BB-/Negative/B, local currency
BB/Negative/B). "The ratings also take into account sound levels
of capitalization, moderate profitability, and the bank's
investment banking niche that supports its market position," said
Standard & Poor's credit analyst Matthew Pirnie. The ratings on
FCMB reflect the bank's stand-alone credit profile and do not
factor in extraordinary support.
"The stable outlook on FCMB balances the bank's increasing credit
risk with its sound capitalization and moderate financial
performance," added Mr. Pirnie. Nonperforming loans and
associated provisioning are expected to rise throughout 2009 and
into 2010 as the economic downturn continues, although S&P does
not currently expect this to threaten bottom-line earnings or
capital. Indeed, capitalization is expected to remain sound in
2009 as risk asset growth slows, despite moderating internal
capital generation. Funding and liquidity could also come under
increased strain in the event that corporate and public sectors
withdraw deposits, although the bank is expected to be flexible
enough to shrink the balance sheet without damaging its franchise
or lowering liquid ratios to below regulatory levels.
Negative rating action will follow any large erosion in liquidity,
including from an outflow of deposits, or if asset quality were to
deteriorate substantially, threatening profitability and
capitalization. However, if economic and industry risks in
Nigeria reduce, and FCMB proves successful in improving its
funding profile and reducing risk asset growth and concentrations
while keeping NPLs at manageable levels and maintaining sound
capitalization, there could be upward ratings momentum.
===============
P A K I S T A N
===============
HABIB BANK: Moody's Reviews 'Ba2' Currency Deposit Ratings
----------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the Ba2 global local currency deposit ratings of Habib
Bank Ltd and United Bank Ltd in light of its global review of
systemic support indicators for the banking systems.
Moody's previously used the local currency deposit ceiling as the
main input for its assessment of the ability of a national
government to support its banks. Although anchoring the
probability of support at the LCDC is appropriate in many
circumstances -- regarding the provision of liquidity to a
selected number of institutions over a short period of time --
this might overestimate the capacity of a central bank to support
financial institutions in the event of a banking crisis becoming
both truly systemic and protracted. This approach is outlined in
the Special Comment entitled "Financial Crisis More Closely Aligns
Bank Credit Risk and Government Ratings in Non-Aaa Countries",
which was published in May 2009.
The review of the local currency deposit ratings will look at the
extent to which Pakistan'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. Moody's will refine its assessment of systemic
support available from the Pakistani state to capture the impact
of the erosion of the local economy's underlying credit
fundamentals and the reduced fiscal policy flexibility on the
government's ability to support the banking sector.
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 system relative to
the government's own foreign exchange resources and changes to the
government's political patterns.
Moody's took these rating actions:
(i) Habib Bank's Ba2/NP GLC deposit ratings were placed on review
for downgrade. The D- BFSR (mapping to a Ba3 BCA) remains
unchanged with a stable outlook. The B3/NP foreign currency
deposit ratings (constrained by the foreign currency deposit
sovereign ceiling) are also unchanged, with a negative outlook.
(ii) United Bank's Ba2/NP GLC deposit ratings were placed on
review for downgrade. The D- BFSR (Ba3 BCA) remains unchanged
with a stable outlook. The B3/NP foreign currency deposit ratings
(constrained by the foreign currency deposit sovereign ceiling)
are also unchanged, with a negative outlook.
The last rating actions on Habib Bank and United Bank were
implemented on 15 December 2008 when Moody's confirmed with a
negative outlook the B3 long-term foreign currency deposit ratings
of all four Pakistani banks rated by Moody's (including MCB Bank
Ltd and National Bank of Pakistan).
Habib Bank Ltd, headquartered in Karachi, reported assets of
PKR749.8 billion (US$9.3 billion) as of the end of March 2009.
United Bank Ltd, headquartered in Karachi, reported assets of
PKR642.0 billion (US$8.0 billion) as of the end of March 2009.
UNITED BANK: Moody's Puts Ba2/NP GLC Deposit Ratings on Review
--------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the Ba2 global local currency deposit ratings of Habib
Bank Ltd and United Bank Ltd in light of its global review of
systemic support indicators for the banking systems.
Moody's previously used the local currency deposit ceiling as the
main input for its assessment of the ability of a national
government to support its banks. Although anchoring the
probability of support at the LCDC is appropriate in many
circumstances -- regarding the provision of liquidity to a
selected number of institutions over a short period of time --
this might overestimate the capacity of a central bank to support
financial institutions in the event of a banking crisis becoming
both truly systemic and protracted. This approach is outlined in
the Special Comment entitled "Financial Crisis More Closely Aligns
Bank Credit Risk and Government Ratings in Non-Aaa Countries",
which was published in May 2009.
The review of the local currency deposit ratings will look at the
extent to which Pakistan'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. Moody's will refine its assessment of systemic
support available from the Pakistani state to capture the impact
of the erosion of the local economy's underlying credit
fundamentals and the reduced fiscal policy flexibility on the
government's ability to support the banking sector.
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 system relative to
the government's own foreign exchange resources and changes to the
government's political patterns.
Moody's took these rating actions:
(i) Habib Bank's Ba2/NP GLC deposit ratings were placed on review
for downgrade. The D- BFSR (mapping to a Ba3 BCA) remains
unchanged with a stable outlook. The B3/NP foreign currency
deposit ratings (constrained by the foreign currency deposit
sovereign ceiling) are also unchanged, with a negative outlook.
(ii) United Bank's Ba2/NP GLC deposit ratings were placed on
review for downgrade. The D- BFSR (Ba3 BCA) remains unchanged
with a stable outlook. The B3/NP foreign currency deposit ratings
(constrained by the foreign currency deposit sovereign ceiling)
are also unchanged, with a negative outlook.
The last rating actions on Habib Bank and United Bank were
implemented on 15 December 2008 when Moody's confirmed with a
negative outlook the B3 long-term foreign currency deposit ratings
of all four Pakistani banks rated by Moody's (including MCB Bank
Ltd and National Bank of Pakistan).
Habib Bank Ltd, headquartered in Karachi, reported assets of
PKR749.8 billion (US$9.3 billion) as of the end of March 2009.
United Bank Ltd, headquartered in Karachi, reported assets of
PKR642.0 billion (US$8.0 billion) as of the end of March 2009.
=====================
P H I L I P P I N E S
=====================
NATIONAL POWER: Expects to Make Profit in 2009
----------------------------------------------
The Philippine National Power Corporation (Napocor) is expecting
to post a profit by end of this year after recording a net loss in
2008, Sunstar reports citing Napocor President Froilan Tampinco.
The report, citing Mr. Tampinco, says that the successful outcome
of a billion global bonds issued by the Power Sector Assets and
Liabilities Management (PSALM) is a clear indication that the year
2009 is expected be good despite the ongoing financial crisis.
The proceeds from the bonds will be used to refinance maturing
debts of Napocor which stood at US$6.8 billion as of end 2008, the
report recounts.
Morover, other factors expected to reverse the company's financial
standing for 2009 is the filing of their 13th Generation Rate
Adjustment Mechanism (Gram) and 12th Incremental Currency Exchange
Rate Adjustment (Icera), respectively, covering the period of
October to December 2008 as well as the adjustments in the tariff,
the report adds citing Mr. Tampinco.
Headquartered in Quezon City, Philippines, National Power
Corporation -- http://www.napocor.gov.ph/-- is a state-owned
utility that builds and operates nuclear, hydroelectric,
thermal, and alternative power generating facilities. It works
with independent producers under a build-operate-transfer
program. With a generating capacity of more than 11,500
megawatts, Napocor sells electricity to distributors and
industrial companies. To comply with the privatization bill
approved by the Philippine Congress, the company has begun
selling off its generation assets to help pay for its estimated
debt of PHP600 billion. It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
Sept. 5, 2008, Fitch Ratings affirmed the rating of 'BB' to the
US$500 million floating rate notes issued by National Power
Corporation in 2006.
The TCR-AP reported on January 29, 2008, that Moody's Investors
Service changed the outlook of National Power Corporation's B1
senior unsecured debt rating to positive from stable. This
rating action follows Moody's decision to change the outlook of
Philippines' B1 long-term government foreign currency rating to
positive from stable.
======================
S A U D I A R A B I A
======================
AHMAD HAMAD: Misses Debt Payment on "Restructuring Exercise"
------------------------------------------------------------
Camilla Hall at Bloomberg News reported that Ahmad Hamad Algosaibi
& Brothers Co said it didn't make payments to creditors of its
Bahrain-based lender The International Banking Corp. "pending a
debt restructuring exercise."
Bloomberg News relates the Middle East Economic Digest, citing
unidentified bankers, put the default figure at US$1 billion in a
May 23 report, saying Algosaibi defaulted on foreign exchange
transactions, trade finance loans and swap agreements.
There's also concern that the next payment, due in November, of a
US$700 million-loan facility arranged by BNP Paribas SA and
Germany's WestLB AG in 2007 may not be met, the magazine said as
cited by Bloomberg News.
Algosaibi, a Saudi holding company, however said it's "financially
solid and capable of meeting obligations", according to Bloomberg
News.
=================
S I N G A P O R E
=================
PRIMEPOWER SYSTEMS: Members' Final Meeting Set for June 29
----------------------------------------------------------
The members of Primepower Systems Pte. Ltd. will hold their final
general meeting on June 29, 2009, at 10:30 a.m., at 1 North Bridge
Road #13-03 High Street Centre, Singapore 179094.
At the meeting, Tay Joo Soon, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
*********
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 ***