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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
Tuesday, August 18, 2009, Vol. 12, No. 162
Headlines
A U S T R A L I A
ANNOUNCER GROUP: Owes More Than AU$400T to Advisers
AUSTRALIAN BIGHT: Investors Launch Bid to Keep Firm
FORTESCUE METALS: Swings to US$508.04 Mln. Net Income in FY2009
GOODMAN GROUP: Completes AU$1.5 Billion Capital Raising
PBL MEDIA: To Retain 49.3% Stake in Carsales.com
C H I N A
* Chinese Auto Suppliers Likely to Emerge as Global Consolidators
H O N G K O N G
AMERICAN INT'L: Has Deal to Sell Hong Kong Finance Unit
BETTER WAY: Placed Under Voluntary Wind-Up
HDS INTERNATIONAL: Appoints Nomura Yojiro as Liquidator
JOINT LEADER: Leung and Morrison Step Down as Liquidators
MATTEL VENDOR: Gilligan Steps Down as Liquidator
MOBILE ENTERTAINMENT: Creditors' Proofs of Debt Due on Sept. 14
SUNBEAM CHILD: Members' Final Meeting Set for September 15
TR INTERNATIONAL: Placed Under Voluntary Wind-Up
WAI LAM: Creditors' Meeting Set for September 7
* HONG KONG: Economy Grows 3.3% in Q2; Pulls Out of Recession
I N D I A
AMERICAN INT'L: Reaches Deal to Sell Indian IT Unit to MphasiS
DIRECT LOGISTICS: CRISIL Reaffirms 'C' Cash Credit Rating
GRS INDUSTRIES: Delay in Loan Servicing Cues CRISIL 'D' Ratings
KARTHIK INDUCTIONS: CRISIL Rates INR10MM Cash Credit at 'BB-'
KOTHARI WASPAP: CRISIL Assigns 'B' Rating on INR80 Mln Cash Credit
RUKMINIRAMA STEEL: CRISIL Rates INR31.60MM Long Term Loan at 'BB-'
SPAC TAPIOCA: CRISIL Places 'BB+' Rating on INR110 Cash Credit
TATA MOTORS: May Purchase 100% Stake in Thailand JV Thonburi
TATA STEEL: In Talks with Two Mining Firms in Vietnam, SA for JVs
WINDLASS STEELCRAFTS: Low Net Worth Prompts CRISIL 'P4' Ratings
J A P A N
LEHMAN BROTHERS: To Lose US$500MM if Shinsei Bank Controls Unit
M A L A Y S I A
RHYTHM CONSOLIDATED: Unit Gets Summons from Gov't. for Tax Claims
N E W Z E A L A N D
SOUTH CANTERBURY: Rating Cut Triggers US$100 Mln Facility Review
N I G E R I A
INTERCONTINENTAL BANK: Fitch Cuts Issuer Default Rating to 'B'
S I N G A P O R E
BLACK ICE: Court Enters Wind-Up Order
LOLA PROPERTIES: Creditors' Proofs of Debt Due on August 28
OCEAN PARK: Creditors' Proofs of Debt Due on September 14
SO SAY: Creditors' Meeting Set for August 28
* SINGAPORE: Retail Sales Down 8.2% in June 2009
S O U T H A F R I C A
MFP FINANCE: Moody's Takes Rating Action on Class A Notes
T A I W A N
AU OPTRONICS: Gets Up to 50% Subsidy for EPD Development
X X X X X X X X
DELPHI CORP: Exhaust Business Sale to Bienes Turgon Completed
* BOND PRICING: For the Week August 10 to August 14, 2009
- - - - -
=================
A U S T R A L I A
=================
ANNOUNCER GROUP: Owes More Than AU$400T to Advisers
---------------------------------------------------
InvestorsDaily reported that authorized representatives of
Announcer Group are claiming the company owes them more than
AU$400,000.
The report, citing a creditors register, says eight of the firm's
advisers are among around 120 creditors seeking payment from the
group and its advice subsidiary, Announcer Financial Planning.
According to InvestorsDaily, the register showed that of the eight
advisers, four are seeking monies equal to or greater than
AU$100,000.
Announcer Group went into administration in July due to money owed
to former business co-owner following his departure from the
business, the Troubled Company Reporter-Asia Pacific reported on
Aug. 4, 2009. Sule Arnautovic at the specialist insolvency firm
Jirsch Sutherland was appointed by Lindsay Yelland on July 14 to
handle the estate's affairs.
SmartCompany.com.au said Announcer Group co-founder and director
Andrew Rocks insisted the company is in no danger of collapse and
the business is trading as usual. Mr. Rocks, who started the
business in 1996, said he is in the process of splitting his
business interests from Mr. Yelland, his former business partner.
Mr. Rocks said the administrator will act as an independent third
party to oversee the separation of the former business partners
and allow the company to "start with a clean slate".
"We are pretty confident that the business will be restructured
through a deed of company arrangement or sold as going concern,"
the report quoted Mr. Arnautovic as saying.
Mr. Arnautovic expects a restructuring could be completed and the
business handed back to Mr. Rocks in the first week of September,
according to SmartCompany.com.au.
Headquartered in Sydney, Australia, Announcer Group --
http://www.announcergroup.com/-- is a financial planning firm.
AUSTRALIAN BIGHT: Investors Launch Bid to Keep Firm
---------------------------------------------------
Pia Akerman and Gavin Lower at The Australian report that
investors in aquaculture company Australian Bight Abalone, whose
abalone breeding programs were hit by mortality rates of up to
100%, have launched a bid to keep the venture going.
According to the report, a group of the growers has made a
AU$250,000 deposit so they can assess the state of the Company's
finances and its failed crops.
"The growers, as far as we're concerned, have put AU$45 million
into this company, and it's their company. If we can take over
the company . . . then we will," John Alford, one of the original
investors in ABA, told The Australian. "We look at it as a
company with a pile of assets that has a cash-flow problem. If we
can fix the cash-flow problem, that company can go forward."
The AU$250,000 deposit will not become binding until Wednesday
next week, The Australian notes.
The Troubled Company Reporter-Asia Pacific, citing Port Lincoln
Times, reported earlier that State Fisheries Minister Paul Caica
rejected the State Opposition's call for a parliamentary inquiry
into the company, which went into voluntary administration last
month.
According to the Lincoln Times, Elliston residents have questioned
for years how the business was allowed to set up and operate in a
sensitive environmental area.
Mr. Caica said he was confident that all transactions undertaken
with respect to leases and licences held by ABA had been in
accordance with the Aquaculture Act, the Lincoln Times related.
About ABA
Australian Bight Abalone -- http://australianbightabalone.com/--
is an aquaculture company based in Elliston, South Australia.
* * *
The Directors of Australian Bight Abalone called in McGrath Nicol
as voluntary administrators of the Company on July 2, 2009.
According to the Australian Food News, ABA said the issues
surrounding the industry, including the failure of two of the
largest companies in the sector, deteriorating general business
conditions, the last minute withdrawal of financiers from the
grower loan funding market and the subsequent reduction in
investment, had been the decisive factors in taking the decision
to move into voluntary administration.
CEO Andrew Ferguson had advised that the company would continue
trading while an acquirer was sought.
FORTESCUE METALS: Swings to US$508.04 Mln. Net Income in FY2009
---------------------------------------------------------------
Fortescue Metals Group swung to net income of US$508.04 million
for the year ended June 30, 2009, from a US$771.77 million net
loss in the prior year. Revenue also rose to US$1.83 billion,
from US$138.29 million.
As at June 30, 2009, the Company's consolidated balance sheet
showed total assets of US$4.41 billion, total liabilities of
US$3.55 billion and total stockholders' equity of US$850.69
million.
A copy of the company's financial results for the year ended
June 30, 2009, is available for free at:
http://ResearchArchives.com/t/s?41f8
Fortescue reported consecutive net losses for the past three
fiscal years. Net loss for the year ended June 30, 2008, was
AU$2.52 billion, while net losses for FY2007 and FY2006 were
AU$192.26 million and AU$2.15 million, respectively.
Headquartered in West Perth, Western Australia, Fortescue Metals
Group Limited (ASX: FM) -- http://fmgl.com.au/-- is involved in
the exploration of iron ore through a project to mine iron ore
in the Chichester Ranges, in the Pilbara region of Western
Australia and exporting it from Port Hedland.
* * *
This concludes the Troubled Company Reporter-Asia Pacific's
coverage of Fortescue Metals Group Limited until facts and
circumstances, if any, emerge that demonstrate financial or
operational strain or difficulty at a level sufficient to warrant
renewed coverage.
GOODMAN GROUP: Completes AU$1.5 Billion Capital Raising
-------------------------------------------------------
Goodman Group revealed last week it had sold about AU$1.5 billion
in shares, The Australian reports.
The report, citing sources, says the placement to raise AU$756
million from institutions was oversubscribed "multiple times".
Not unexpectedly, its AU$355 million retail offer, which opened on
Friday, Aug. 14, was fully underwritten.
According to The Australian, Goodman also sold AU$500 million
worth of securities to Chinese sovereign wealth fund China
Investment Corporation and formed a joint venture with Canada
Pension Plan Investment Board for projects in China.
Goodman will use the capital injection to reduce its net debt, the
report says.
Commenting on the successful raising, the report relates, Goodman
chief executive Greg Goodman said the response was an endorsement
of its "operating model". Mr. Goodman, according to the report,
reiterated the group would continue to focus on its core business
of owning, developing and managing industrial property.
Goodman Group (ASX:GMG) -- http://www.goodman.com/-- is engaged
in fund management, property services, development management and
investment in directly and indirectly held industrial property.
The Company is based in Australia and has operations in Asia
Pacific (primarily Australia, New Zealand, Hong Kong, People's
Republic of China and Japan) and Europe. On December 17, 2007, it
sold a 50% equity interest in Highbrook Developments Limited (HDL)
to Goodman Property Trust. On March 27, 2008, it completed the
disposal of its 40% interest in Ascendas MGM Funds Management
Limited (AMFM) and also sold its 6.8% stake in Ascendas Real
Estate Investment Trust (A-REIT). On May 31, 2008, the Company
sold its investment in Goodman Property Investors Limited (GPI).
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 10, 2009, Moody's Investors Service said it is maintaining
its review for possible downgrade on Goodman Group's Baa3 issuer
and senior unsecured ratings. It is also continuing its review
for possible downgrade on the subordinated "Ba1" rating on
Goodman's hybrid securities. The review will be concluded upon
the successful completion of the recapitalization.
This follows Goodman's announcement of its capital management plan
-- which involves the issuance of an underwritten equity of
AU$1.3 billion and preference securities of AU$500 million -- and
its extension of debt at the headstock as well as the managed
funds.
PBL MEDIA: To Retain 49.3% Stake in Carsales.com
------------------------------------------------
PBL Media Pty Ltd will retain its 49.3% interest in carsales.com
Ltd as the online automotive advertising business prepares for a
public sale of shares and listing on the local stock exchange, The
Sydney Morning Herald reports.
According to the report, carsales.com will offer between 42.9
million and 71.1 million shares representing up to 30.7% of its
existing stock through a broker firm offer to retail investors and
priority offer to its employees.
The report says the shares will be priced at AU$3.50 each,
resulting in an offer size valued between AU$150 million and
AU$248.7 million.
Upon listing, says the Herald, carsales.com will have a market
value of AU$811.8 million.
PBL Media, through its wholly owned subsidiary ACP Magazines Ltd
unit, plans to retain its entire holding and remain the largest
shareholder of carsales.com, citing the growth potential of the
business, according to the Herald.
The sole lead manager and underwriter of the offer is Macquarie
Capital Advisors.
As reported in the Troubled Company Reporter-Asia Pacific on
July 28, 2009, The Australian said PBL Media Pty Ltd was
considering for a possible AU$450 million float of its half-owned
carsales.com.au Web site. The Australian said the company was
also considering selling another non-core asset, the ticketing
agency Ticketek.
The Australian related that the moves to offload carsales.com.au
and Ticketek are seen as essential to lowering PBL Media's
AU$3.5 billion-plus debt, amid reports the group will have
difficulty meeting its banking covenants in September.
According to The Australian, Macquarie Bank is believed to be
working with PBL Media on preparations, with Fairfax Media and
News Limited (publisher of The Australian) both obvious suitors
for carsales.com.au.
The Australian, citing analysts, said the sales would help PBL
Media, owned by the private equity firm CVC Asia Pacific, to pay
down debt to closer to AU$3 billion.
The TCR-AP, citing Bloomberg News, reported on Dec. 18, 2008, that
PBL Media received a AU$445 million (US$294 million) refinancing
package from CVC Asia Pacific Ltd. to protect the media company
from default.
Bloomberg recalled PBL had been struggling to repay debt from
the 2006 buyout as the credit crunch pushes up interest costs and
slowing economic growth cuts advertising revenue. Bloomberg noted
that billionaire James Packer left the company's board in October
after his Consolidated Media Holdings Ltd. refused to provide more
capital as banks warned PBL was close to breaching covenants on
its loans.
PBL Media Pty Limited -- http://www.pblmedia.com.au/-- is an
Australian media and entertainment group. Its assets include the
Nine Network Australia, ACP Magazines, Ticketek, Acer Arena and
majority interests in carsales.com, NBN Television, a 50% interest
in ninemsn as well as interests in Mathletics and the Australian
News Channel (Sky News).
=========
C H I N A
=========
* Chinese Auto Suppliers Likely to Emerge as Global Consolidators
-----------------------------------------------------------------
PRTM is releasing the findings from its global study of more than
350 automotive suppliers to determine the winners and losers in
the consolidation of the automotive supply industry.
Chinese and the largest global European suppliers scored highest
on PRTM's global buyer scale, indicating these suppliers will
likely buy other suppliers that are distressed, as a result of the
global automotive industry downturn. For instance, Guangzhou
Automotive Components, a division of the highly profitable 51%
state-owned automobile manufacturer Guangzhou Automobile Industry
Group Co. in Guangzhou, China, and Weichai Power Co., a state-
owned diesel-engine manufacturer in Weifang, China, appear on
PRTM's global top 10 buyer list. Guangzhou already has an active
M&A history in buying automotive assemblers and suppliers. The
South Chinese company is also a joint-venture partner of Toyota
Motor Corp. and Honda Motor Co. in China.
Weichai Power and Toyota Keiretsu suppliers, such as Denso Corp.,
Toyota Boshoku Corp. and Aisin Seiki Co., are also on the top 10
buyer list, along with large, global European suppliers like ZF
Friedrichshafen AG, SKF Group, and BASF AG.
However, Dietmar Ostermann, global lead director for PRTM's
automotive industry practice and author of this study, adds:
"Despite the fact that Toyota Keiretsu suppliers show very well as
potential buyers in our study and have the financial strength and
capability to be a consolidator, we don't expect them to be very
busy with M&A activities. It is counter-cultural to Toyota, and I
expect they will continue to grow organically or engage in joint
ventures."
Only one U.S. supplier, PPG Industries, Inc., appears on the top
10 global buyer list. PPG, located in Pittsburgh, Pa., is a glass
and paint manufacturer that serves the auto industry, but is also
highly diversified into several other industry sectors. PRTM
predicts that several of the remaining 31 largest global North
American suppliers are most likely headed for bankruptcy or buy-
out. Earlier this year, Lear Corp., Metaldyne Corp. and Visteon
Corp., among others, filed for Chapter 11 bankruptcy protection.
Other prominent U.S. auto suppliers, such as American Axle &
Manufacturing Holdings, Inc., a large General Motors Co. axle and
drive shaft supplier, could follow suit, predicts PRTM.
Interestingly, in North America, the risk of failure is higher for
the 31 largest global 100 suppliers than the next largest 30
suppliers. "This is, in part, because the large, global North
American suppliers have been under more intense scrutiny from auto
manufacturers, and several of them are tied to Chrysler and
General Motors," says Ostermann.
The intensity of bankruptcies and consolidation is anticipated to
be strongest in the chassis (brakes, steering, axles, suspensions,
etc.) and electrical/electronics (wire harnesses, switches, door
systems, etc.). Chassis systems are usually capital investment-
intensive and, thus, more impacted by volume declines, whereas
electronic systems represent the future of the vehicle industry
and many suppliers are trying to add electronic capabilities to
their respective automotive systems. In fact, PRTM studied the
accelerating pace of the most recent 122 supplier bankruptcies and
found that a significant number were chassis system suppliers,
such as Metaldyne, Hayes Lemmerz International, Inc., Contech and
J.L. French.
"Pair that with the relatively unconsolidated supply base with
over 120 chassis suppliers of relevant size globally and the fact
that this segment has the largest number of strong potential
buyers and weak potential bankruptcy candidates, and it tells you
that the M&A pressure will be highest in chassis systems,"
Ostermann says.
The study covered 357 global suppliers from North America, Europe,
South America, China, India, Japan and South Korea and was
conducted by a global PRTM team between February and July 2009.
It evaluates more than 20 financial and qualitative criteria, such
as cash flow and ownership structure. For the complete findings
or to schedule a discussion with a PRTM automotive expert, contact
Danielle Bernier at dbernier@prtm.com or +1 781.434.1206.
Since 1976, PRTM has created a competitive advantage for its
clients by changing the way companies operate. PRTM's management
consultants work with senior executives to develop and implement
innovative operational strategies that deliver breakthrough
results. The firm is a leader in operational strategy, supply
chain, product development, and customer value management. PRTM
has 18 offices worldwide and serves major industry and global
public sectors.
================
H O N G K O N G
================
AMERICAN INT'L: Has Deal to Sell Hong Kong Finance Unit
-------------------------------------------------------
American International Group Inc. has entered into an agreement to
sell 100 percent of its shares of AIG Finance (Hong Kong) Limited
to China Construction Bank Asia for US$70 million in cash, subject
to typical closing adjustments, plus the repayment of intra-group
indebtedness and deposits of approximately US$557 million.
The transaction is subject to the satisfaction of certain
conditions, including approvals by appropriate regulatory
authorities.
AIG Finance is a leading issuer of credit cards in Hong Kong,
operating as a restricted license bank that offers a variety of
financial products and services. As of June 30, 2009, AIG Finance
had more than 500,000 customers, total net loan receivables of
HK$4.8 billion and a retail deposits balance of HK$1 billion.
Deutsche Bank acted as financial advisor to AIG on this
transaction.
About American Int'l
Based in New York, American International Group, Inc., is the
leading international insurance organization with operation in
more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance
networks of any insurer. In addition, AIG companies are leading
providers of retirement services, financial services and asset
management around the world. AIG's common stock is listed on the
New York Stock Exchange, as well as the stock exchanges in Ireland
and Tokyo.
In September 2008, AIG experienced a liquidity crunch when its
credit ratings were downgraded below "AA" levels by Standard &
Poor's, Moody's Investors Service and Fitch Ratings. On
September 16, 2008, the Federal Reserve Bank created an
US$85 billion credit facility to enable AIG to meet increased
collateral obligations consequent to the ratings downgrade, in
exchange for the issuance of a stock warrant to the Fed for 79.9%
of the equity of AIG. The credit facility was eventually
increased to as much as US$182.5 billion. AIG has sold a number
of its subsidiaries and other assets to pay down loans received,
and continues to seek buyers of its assets.
At March 31, 2009, AIG had US$819.75 billion in total assets and
US$765.53 billion in total liabilities. At September 30, 2008,
AIG had US$1.022 trillion in total assets and US$950.9 billion in
total debts.
The Troubled Company Reporter reported on March 4, 2009, that
Moody's Investors Service confirmed the A3 senior unsecured debt
and Prime-1 short-term debt ratings of American International
Group. AIG's subordinated debt rating has been downgraded to Ba2
from Baa1. The rating outlook for AIG is negative. This rating
action follows AIG's announcement of net losses of US$62 billion
for the fourth quarter and US$99 billion for the full year of
2008, along with a revised restructuring plan supported by the
U.S. Treasury and the Federal Reserve. This concludes a review
for possible downgrade that was initiated on September 15, 2008.
BETTER WAY: Placed Under Voluntary Wind-Up
------------------------------------------
On August 1, 2009, the sole shareholder of Better Way Limited
passed a resolution that voluntarily winds up the company's
operations.
The company's liquidator is:
Chan Kim Fai
CLI Building, Unit 1902, 19th Floor
No. 313 Hennessy Road
Wanchai, Hong Kong
HDS INTERNATIONAL: Appoints Nomura Yojiro as Liquidator
-------------------------------------------------------
On August 7, 2009, a special resolution was passed appointing
Nomura Yojiro as the liquidator of HDS International (HK) Limited.
The Liquidator can be reached at:
Nomura Yojiro
Lippo Centre, Tower 2
c/o Suite 2408, 24th Floor
89 Queensway, Hong Kong
JOINT LEADER: Leung and Morrison Step Down as Liquidators
---------------------------------------------------------
On August 10, 2009, Man Mo Leung and Kenneth Graeme Morrison
stepped down as liquidators of Joint Leader Limited.
MATTEL VENDOR: Gilligan Steps Down as Liquidator
------------------------------------------------
On August 5, 2009, Philip Brendan Gilligan stepped down as
liquidator of Mattel Vendor Operations Asia Limited.
MOBILE ENTERTAINMENT: Creditors' Proofs of Debt Due on Sept. 14
---------------------------------------------------------------
The creditors of Mobile Entertainment Forum Asia Limited are
required to file their proofs of debt by September 14, 2009, to be
included in the company's dividend distribution.
The company's liquidator is:
Lau Ka Yee Coco
Double Building, Room 1501
22 Stanley Street, Central
Hong Kong
SUNBEAM CHILD: Members' Final Meeting Set for September 15
----------------------------------------------------------
The members of Sunbeam Child Care Education Limited will hold
their final meeting on September 15, 2009, at 11:00 a.m., at the
5th Floor of Far East Consortium Bldg., 121 Des Voeux Road, in
Central, Hong Kong.
At the meeting, Chan Cheuk Chi, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
TR INTERNATIONAL: Placed Under Voluntary Wind-Up
------------------------------------------------
At an extraordinary general meeting held on July 31, 2009, the
members of TR International Limited resolved to voluntarily wind
up the company's operations.
Messrs. Wong Poh Weng and Wong Tak Man Stephen were appointed as
the company's liquidators.
WAI LAM: Creditors' Meeting Set for September 7
-----------------------------------------------
The creditors of Wai Lam Printing Factory Limited will hold their
meeting on September 7, 2009, at 3:00 p.m., for the purposes
mentioned in Section 241, 242, 243, 244, 251, 255A and 283 of the
Companies Ordinance.
The meeting will be held at the 8th Floor of Richmond Commercial
Building, 109 Argyle Street, Mongkok, in Kowloon, Hong Kong.
* HONG KONG: Economy Grows 3.3% in Q2; Pulls Out of Recession
-------------------------------------------------------------
Hong Kong's economy pulled out of recession in the second quarter
as the territory benefited from strong growth in mainland China
and better conditions in the West, the Associated Press reports
citing the government.
According to the AP, the government said the southern Chinese
territory's economy, slammed four straight quarters by free-
falling world demand for exports, grew by 3.3% on a seasonally
adjusted quarter-to-quarter basis.
With the global economy starting to level out, the AP relates,
Hong Kong made a less pessimistic forecast for all of 2009, saying
gross domestic product was set to contract between 3.5% and 4.5%
rather than 5.5% to 6.5%.
=========
I N D I A
=========
AMERICAN INT'L: Reaches Deal to Sell Indian IT Unit to MphasiS
--------------------------------------------------------------
American International Group reached a deal to sell its IT unit in
India, the Associated Press reports.
According to the report, the insurance group will sell its AIG
Systems Solutions Pvt. Ltd., an India-based company that provides
information technology services to AIG companies around the world,
to MphasiS, of Chennai, India.
MphasiS, a unit of Hewlett Packard's Electronic Data Systems, said
about 39% of its revenue comes from financial services and
insurance companies, the AP relates.
The report says the terms of the deal were not disclosed.
AIG Systems Solutions is based in Chennai and Kolkata, India. It
has about 800 employees.
About American Int'l
Based in New York, American International Group, Inc., is the
leading international insurance organization with operation in
more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance
networks of any insurer. In addition, AIG companies are leading
providers of retirement services, financial services and asset
management around the world. AIG's common stock is listed on the
New York Stock Exchange, as well as the stock exchanges in Ireland
and Tokyo.
In September 2008, AIG experienced a liquidity crunch when its
credit ratings were downgraded below "AA" levels by Standard &
Poor's, Moody's Investors Service and Fitch Ratings. On
September 16, 2008, the Federal Reserve Bank created an
US$85 billion credit facility to enable AIG to meet increased
collateral obligations consequent to the ratings downgrade, in
exchange for the issuance of a stock warrant to the Fed for 79.9%
of the equity of AIG. The credit facility was eventually
increased to as much as US$182.5 billion. AIG has sold a number
of
its subsidiaries and other assets to pay down loans received, and
continues to seek buyers of its assets.
At March 31, 2009, AIG had US$819.75 billion in total assets and
US$765.53 billion in total liabilities. At September 30, 2008,
AIG had US$1.022 trillion in total assets and US$950.9 billion in
total debts.
The Troubled Company Reporter reported on March 4, 2009, that
Moody's Investors Service confirmed the A3 senior unsecured debt
and Prime-1 short-term debt ratings of American International
Group. AIG's subordinated debt rating has been downgraded to Ba2
from Baa1. The rating outlook for AIG is negative. This rating
action follows AIG's announcement of net losses of US$62 billion
for the fourth quarter and US$99 billion for the full year of
2008, along with a revised restructuring plan supported by the
U.S. Treasury and the Federal Reserve. This concludes a review
for possible downgrade that was initiated on September 15, 2008.
DIRECT LOGISTICS: CRISIL Reaffirms 'C' Cash Credit Rating
---------------------------------------------------------
CRISIL's ratings on the bank facilities of Direct Logistics India
Pvt Ltd continue to reflect Direct Logistics' strained financial
risk profile, small scale of operations, and working capital-
intensive operations. The impact of these weaknesses is mitigated
by the strong growth in the company's operating income and
expanding market presence.
Facilities Ratings
---------- -------
INR120.0 Million Cash Credit C (Reaffirmed)
INR20.0 Million Bank Guarantee P4 (Reaffirmed)
INR18.0 Million Line of Credit P4 (Reaffirmed)
About Direct Logistics
Set up in 1997 by Mr. Sunil Devrani, Direct Logistics provides
container-freight forwarding and clearing agency services. The
company, headquartered in Mumbai, has offices in Bengaluru, Pune,
Ahmedabad, New Delhi, Kolkata, Chennai, and Tuticorin, and agents
in many countries. Direct Logistics focuses on ocean freight and
provides services across geographies.
For the year ended March 31, 2008, Direct Logistics reported a net
loss of INR35.1 million on sales of INR721.3 million, against a
net loss of INR0.1 million on sales of INR620.0 million in the
preceding year.
GRS INDUSTRIES: Delay in Loan Servicing Cues CRISIL 'D' Ratings
---------------------------------------------------------------
CRISIL has assigned its rating of 'D/P5' to the bank facilities of
GRS Industries Ltd.
Facilities Ratings
---------- -------
INR135.0 Million Cash Credit Limit D (Assigned)
INR350.0 Million Term Loan D (Assigned)
INR7.9 Million Proposed Long Term D (Assigned)
Bank Loan Facility
INR2.1 Million Bank Guarantee P5 (Assigned)
The rating reflects instances of delay in term loan servicing by
GRSIL over the past 12 months, because of stressed liquidity.
About GRS Industries
GRS Industries Ltd. was incorporated in 2005 by Mr. Kaushal Gupta
and his family members. The company set up a cotton spinning unit
in 2007 with an installed capacity of 14.5 tonnes of cotton yarn
per day. For this, it has put up 14,376 spindles in its plant
situated at Ludhiana (Punjab). The company has also installed 24
shuttleless looms/weaving machines for manufacture of cotton
fabrics. GRSIL is currently under project phase, but has
partially commissioned its capacities since 2007, though the
utilization level remains low.
KARTHIK INDUCTIONS: CRISIL Rates INR10MM Cash Credit at 'BB-'
-------------------------------------------------------------
CRISIL has assigned its ratings of 'BB-/Stable/P4' to the various
bank facilities of the Karthik Inductions Ltd.
Facilities Ratings
---------- -------
INR10.00 Million Cash Credit BB-/Stable (Assigned)
INR20.00 Million Bills Discounting P4 (Assigned)
INR20.00 Million Letter of Credit P4 (Assigned)
INR17.50 Million Bank Guarantee P4 (Assigned)
The ratings reflect the group's exposure to risks relating to
project implementation, limited financial flexibility, and modest
scale of operations. These weaknesses are, however, partially
offset by the benefit the group derives from the promoters' vast
experience in the steel industry.
For arriving at the ratings, CRISIL has combined the business and
financial profiles of Karthik Inductions Ltd and Rukminirama Steel
Rollings Pvt Ltd. These companies, collectively referred to as
the Rukminirama group, are in the same line of business and under
a common management, and have significant inter-company
transactions, and derive considerable business synergies from each
other.
Outlook: Stable
CRISIL believes that Rukminirama group's business risk profile
will continue to be supported by the vast industry experience of
the promoters. The outlook may be revised to 'Positive' if the
group's operating revenues & margins improve substantially from
current levels. Conversely, the outlook may be revised to
'Negative' if there are significant time or cost overruns in the
pelletisation project, or if there is a material deterioration in
the debt protection indicators.
About the Rukminirama group
The Rukminirama group has been in the steel products business
since 1995, when the promoters set up an induction furnace for
production of ingots under KIL at Kundaim, Goa. Subsequently, as
part of a forward integration initiative, the promoters set up a
rolling mill under RSRPL in 1998, for manufacture of steel long
products. The group proposes to set up a 0.3 million tonne per
annum (mtpa) pelletisation plant at Hospet (Karnataka) and to
commence production by December 2009.
About Karthik Inductions Ltd.
For the year ended March 31, 2009,, KIL reported a profit after
tax (PAT) of INR 0.22 million on net sales of INR 584.08 million,
as against a PAT of INR 5.37 million on net sales of INR 511.76
million in the preceding year.
KOTHARI WASPAP: CRISIL Assigns 'B' Rating on INR80 Mln Cash Credit
------------------------------------------------------------------
CRISIL has assigned its ratings of 'B/Stable/P4' to the bank
facilities of Kothari Waspap Pvt Ltd.
Facilities Ratings
---------- -------
INR80.0 Million Cash Credit B/Stable (Assigned)
INR10.0 Million Letter of Credit P4 (Assigned)
The ratings reflect Kothari Waspap's weak financial risk profile,
and exposure to customer concentration risks in its revenue
profile. These weaknesses are, however, partially offset by the
benefits that Kothari Waspap derives from its stable operating
margins and established sourcing network.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Kothari Waspap, with those of Kothari
Paper Agencies, Kothari Papers, and Kothari Enterprises
(collectively, referred to as the Kothari group), because of the
significant financial and management linkages that the companies
share. The group's management has indicated plans to merge these
entities over the next few years.
Outlook: Stable
CRISIL believes that the Kothari group will maintain a stable
credit risk profile over the medium term, supported by a wide
operating network and the extensive experience of the promoters in
the paper industry. The outlook may be revised to 'Positive' if
improvement in the group's gearing leads to a stronger financial
risk profile. Conversely, the outlook may be revised to
'Negative' if the Kothari group's financial risk profile weakens
as a result of deterioration in debtor profile, or of liquidity
constraints, or intake of large debt to fund capital expenditure.
About Kothari Waspap
Kothari Waspap trades in waste paper and scrap products. It
procures waste paper and metal scrap from retailers and semi-
wholesalers, and sells them to paper manufacturing and recycling
mills. It also procures newsprint from paper mills and sells the
same to regional dailies in Gujarat. The company trades in waste
and scrap paper, and plastic, wooden and metal scrap. Kothari
Waspap reported a profit after tax (PAT) of INR6 million on net
sales of INR360 million for the year ended March 31, 2009, as
against a PAT of INR4.3 million on net sales of INR250 million for
the year ended March 31, 2008.
RUKMINIRAMA STEEL: CRISIL Rates INR31.60MM Long Term Loan at 'BB-'
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB-/Stable/P4' to the various
bank facilities of the Rukminirama Steel Rollings Pvt Ltd.
Facilities Ratings
---------- -------
INR31.60 Million Long Term Loan BB-/Stable (Assigned)
INR40.00 Million Cash Credit BB-/Stable (Assigned)
INR50.00 Million Letter of Credit P4 (Assigned)
INR30.00 Million Bank Guarantee P4 (Assigned)
The ratings reflect the group's exposure to risks relating to
project implementation of its proposed pelletisation plant, modest
scale of operations and susceptibility of margins to cyclicality
in steel industry. These weaknesses are, however, partially
offset by the benefit the group derives from the promoters' vast
experience in the steel industry.
For arriving at the ratings, CRISIL has combined the business and
financial profiles of Karthik Inductions Ltd and Rukminirama Steel
Rollings Pvt Ltd. These companies, collectively referred to as
the Rukminirama group, are in the same line of business and under
a common management, and have significant inter-company
transactions, and derive considerable business synergies from each
other.
Outlook: Stable
CRISIL believes that Rukminirama group's business risk profile
will continue to be supported by the vast industry experience of
the promoters. The outlook may be revised to 'Positive' if the
group's operating revenues & margins improve substantially from
current levels. Conversely, the outlook may be revised to
'Negative' if there are significant time or cost overruns in the
pelletisation project, or if there is a material deterioration in
the debt protection indicators.
About the Rukminirama group
The Rukminirama group has been in the steel products business
since 1995, when the promoters set up an induction furnace for
production of ingots under KIL at Kundaim, Goa. Subsequently, as
part of a forward integration initiative, the promoters set up a
rolling mill under RSRPL in 1998, for manufacture of steel long
products. The group proposes to set up a 0.3 million tonne per
annum (mtpa) pelletisation plant at Hospet (Karnataka) and to
commence production by December 2009.
About Rukminirama Steel Rollings Pvt Ltd.
For the year ended March 31, 2009, RSRPL reported a profit after
tax (PAT) of INR13.66 million on net sales of INR1768 million, as
against a PAT of INR10.30 million on net sales of INR1378 million
for 2007-08.
SPAC TAPIOCA: CRISIL Places 'BB+' Rating on INR110 Cash Credit
--------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank
facilities of Spac Tapioca Products (India) Ltd.
Facilities Ratings
---------- -------
INR110.0 Million Cash Credit * BB+/Stable (Assigned)
INR58.1 Million Long Term Loans # BB+/Stable (Assigned)
INR5 Million Export Packing Credit P4 (Assigned)
INR5 Million Bank Guarantee P4 (Assigned)
INR25 Million Line of Credit ^ P4 (Assigned)
* includes proposed Cash Credit of INR 20 million,
# includes proposed Long Term Loan of INR 9 million ,
^ includes proposed Line of Credit of INR 10 million
The ratings are constrained by the susceptibility of Spac's
performance to the volatility associated with agricultural
produce, and by Spac's modest financial risk profile, reflected in
its high gearing, and its working capital-intensive operations.
These rating weaknesses are mitigated by Spac's adequate operating
capabilities and the extensive experience of its promoters in the
tapioca-starch business.
Outlook: Stable
CRISIL believes that Spac's credit risk profile will improve
gradually over the medium term, on the back of its healthy
operating capabilities and the expected steady improvement in its
financial risk profile, especially in its gearing and key debt
protection metrics. The outlook may be revised to 'Positive' in
case of a significant improvement in the company's financial risk
profile, including by way of equity infusions, or in case the
company improves its utilization levels. Conversely, the outlook
may be revised to 'Negative' in case the company undertakes fresh,
significant debt-funded capital expenditure, preventing the
envisaged improvement in its gearing and key debt protection
measures, or in case of significant decline in its business
performance.
About Spac Tapioca
Spac Tapioca Products (India) Ltd was set up in 1996 to
manufacture tapioca-based starch (both native and modified
starch). Its manufacturing facility is situated in Erode, Tamil
Nadu, and enjoys proximity to the tapioca growing belt of the
state. The company is among the largest manufacturers of tapioca-
based starch in the country, with an installed capacity of 45,000
tonnes per annum as on March 31, 2009.
For the year ended March 31, 2008, Spac reported a net profit of
INR13.9 million on net sales of INR313.2 million, against a net
profit of INR23.6 million on net sales of INR345.5 million in the
previous year.
TATA MOTORS: May Purchase 100% Stake in Thailand JV Thonburi
------------------------------------------------------------
The Economic Times reports that Tata Motors Limited may buy the
entire stake of its partner Thonburi Automotive in the Thailand
venture in case the overseas entity is unable to raise fresh
equity.
The Indian carmaker may have to purchase Thonburi's 20% stake in
Tata Motors (Thailand) Ltd (TMTL), in case the JV is not able to
raise fresh equity for its operations, the ET says citing Tata
Motors in its annual report for 2008-09.
According to the ET, the JV company is seeking loans of
Rs 121.71 crore from Citibank NA, for which Tata Motors has to
give guarantee worth Rs 85.20 crore. Tata Motors, says the ET,
has given a letter of comfort to the lender against the short-term
and long-term loans in accordance to Rupee-Bhat exchange rate as
on March 31, 2009.
"The company (Tata Motors) has given a letter of comfort to
Citibank NA against the short-term and long-term loans aggregating
THB 850 million (Rs 121.71 crore as on March 31, 2009) given by
Citibank NA to Tata Motors (Thailand) Ltd (TMTL)," the ET cited
Tata's annual report.
The letter of comfort is restricted to 70% of the total equity,
amounting to THB595 million (Rs 85.20 crore as on March 31, 2009),
the report added.
The ET discloses that Tata Motors has given an undertaking to
Citibank NA stating that it would not dilute its stake in TMTL to
below 51 per cent during the tenure of the loan. It has also
given an unsecured subordinated loan of about Rs 106.95 crore as
on March 31, 2009, to TMTL, the ET notes.
Tata Motors (Thailand) Ltd (TMTL) is a joint venture formed in
December 2006. It is 70% owned by Tata Motors while 20% is with
Thonburi Automotive and the rest 10% is controlled by a Thonburi
subsidiary, according to the ET. In 2006, the ET recalls, TMTL
announced plans to invest US$39 million to produce up to 35,000
units of one-tonne trucks a year.
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
Aug. 6, 2009, Standard & Poor's Ratings Services said that it had
lowered its long term corporate credit rating on India-based Tata
Motors Ltd. to 'B' from 'B+'. The outlook is negative. At the
same time, Standard & Poor's lowered the issue rating on the
company's senior unsecured notes to 'B' from 'B+'. Both ratings
were removed from CreditWatch, where they were placed with
negative implications on December 18, 2009, and refreshed in
March 2009.
TATA STEEL: In Talks with Two Mining Firms in Vietnam, SA for JVs
-----------------------------------------------------------------
Tata Steel Limited is scouting for iron ore and coking coal mines
worldwide and is in talks with two mining firms in Vietnam and
South Africa for joint ventures, according to the Economic Times.
The company is aiming for raw material security primarily for its
global operations, the report says.
"We have an option in a South African iron ore mine to enter into
a joint venture with the promoters. This project is currently
under evaluation," the ET cited Tata Steel in its annual report
for 2008-09.
According to the ET, Tata Steel will also take a minority stake in
an iron ore mine in Vietnam to feed its proposed JV steel unit
there.
The report relates that the steelmaker in 2007 entered into an
agreement with Vietnam Steel Corporation to set up a mill. Tata
Steel, says the ET, will have a 65% stake in the JV.
The South African mine would primarily cater to its European steel
firm Corus, which lacks raw material security, the report notes.
According to the company's annual report cited by the ET, Tata
Steel is also evaluating mineral projects in Brazil and Australia.
Tata Steel also has a joint venture with New Millennium Capital
Corp. in Canada, with an option to acquire 80% in the direct
shipping ore project, the ET says.
Apart from India, the ET relates, Tata Steel has operations in
Thailand, Singapore, Vietnam, and the European continent.
About Tata Steel Limited
Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/-- is a diversified steel producer. It
has operations in 24 countries and commercial presence in over 50
countries. Its operations predominantly relate to manufacture of
steel and ferro alloys and minerals business. Other business
segments comprises of tubes and bearings. On April 2, 2007, Tata
Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1,
which in turn is a subsidiary of Tata Steel completed the
acquisition of Corus Group plc. Tata Metaliks Limited, which is
engaged in the business of manufacturing and selling pig iron,
became a subsidiary of the Company with effect from February 1,
2008. In September 2008, the Company acquired a 7.3% interest in
Riversdale Mining Ltd.
* * *
As reported in the Troubled Company Reporter-Asia on June 10,
2009, Moody's Investors Service downgraded the corporate family
rating of Tata Steel Ltd to Ba3 from Ba2. Moody's said the rating
outlook is stable.
WINDLASS STEELCRAFTS: Low Net Worth Prompts CRISIL 'P4' Ratings
---------------------------------------------------------------
CRISIL has assigned its rating of 'P4' to the bank facilities of
Windlass Steelcrafts (WSC), which is part of the Windlass group.
Facilities Ratings
---------- -------
INR35.00 Million Export Packing Credit* P4 (Assigned)
INR80.00 Bill Discounting P4 (Assigned)
INR15.00 Million Stand-by Line of Credit P4 (Assigned)
*contains a proposed limit of INR5.0 million and is
interchangeable with Bill Discounting for INR10 million
The ratings reflect the Windlass group's small scale of operations
in the steel craft and oil field equipment industries, weak
financial risk profile, marked by low net worth, high gearing, and
below-average debt protection measures, and working capital-
intensive operations. The ratings also factor in Windlass
Engineers and Services Pvt Ltd's exposure to risks relating to
fluctuations in crude oil prices and to uncertainties in the
business environment. These weaknesses are partially offset by
the benefits that the group derives from the extensive experience
of its promoters, its established distribution network in
steelcraft business, and diversification of business through
WESPL.
As part of this rating exercise, CRISIL has combined the business
and financial risk profiles of WSC and WESPL; this is because the
two entities, together referred to as the Windlass group, have
common ownership and management teams, shared premises, and
fungible funds, despite the absence of business linkages between
them. In 2008-09, the partners withdrew INR38 million from WSC,
and invested the same in WESPL as interest-bearing unsecured debt.
About the Group
Set up in 1943 by the late Mr. V P Windlass, WSC produces replicas
of swords, bayonets, daggers, sabres, and other historical arms
and armour. The firm is the flagship entity of the Windlass
group, and the official contractor to the United States Marine
Corps for ceremonial swords; it also supplies its products for
movie productions. WESPL and WSC share common premises at
Dehradun (Uttarakhand).
WESPL, promoted by the Windlass family, was incorporated in 2007.
It manufactures a variety of oil-field equipment, catering mainly
to the oil exploration industry. Its product portfolio consists of
blow out-preventer (BOP) control units, hammer unions, high-
pressure test units, gaskets, and spools.
The Windlass group reported a profit after tax (PAT) of INR27
million on net sales of INR177 million for 2007-08, as against a
PAT of INR37 million on net sales of INR157 million for 2006-07.
For 2007-08, WSC reported a profit after tax (PAT) of INR41.5
million on net sales of INR176 million, as against a PAT of
INR37.4 million on net sales of INR157 million for 2006-07.
=========
J A P A N
=========
LEHMAN BROTHERS: To Lose US$500MM if Shinsei Bank Controls Unit
---------------------------------------------------------------
Lehman Brothers Holdings Inc. asks the U.S. Bankruptcy Court for
the Southern District of New York to enter an order enforcing the
automatic stay against Shinsei Bank Ltd. LBHI tells the
Bankruptcy Court that it may lose US$500 million if Japan's
Shinsei Bank Ltd. gains control of the reorganization of an Asian
Lehman unit.
LBHI and its Hong Kong affiliate, Lehman Brothers Asia Holdings
Limited, have an intercompany claim in the Japanese insolvency
proceedings of their affiliate, Sunrise Finance Co., Ltd. Shinsei
Bank, one of LBHI's largest unsecured creditors and a co-chair of
the Asia sub-committee within the Creditors Committee, recently
has proposed an alternative plan of liquidation in the Sunrise
insolvency proceeding designed to preclude entirely LBHI's and LB
Asia's recoveries from Sunrise, so that Shinsei Bank may recover
virtually 100% of its Sunrise claims.
Richard L. Levine, Esq., at Weil, Gotshal & Manges LLP, asserts
that Shinsei Bank's actions in Japan constitute a willful and
knowing violation of the automatic stay. Shinsei Bank not only is
aware of the automatic stay provided for in Section 362(a) of the
Bankruptcy Code, but also, being an active participant in these
cases and on the Asia sub-committee within the Creditors
Committee, is acutely aware of the devastating impact that its
actions in Sunrise's insolvency proceeding could have on the
Debtors' estates.
Accordingly, the Debtors request that Shinsei Bank be directed to
comply with the automatic stay and cease any further attempts to
block LBHI's and LB Asia's recoveries from Sunrise. Furthermore,
the Debtors request that Shinsei Bank be held in contempt of this
Court for willfully and knowingly violating the automatic stay.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed $639 billion in assets and $613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion. Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for $2 dollars plus
the retention of most of employees. Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33
billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)
===============
M A L A Y S I A
===============
RHYTHM CONSOLIDATED: Unit Gets Summons from Gov't. for Tax Claims
-----------------------------------------------------------------
Rhythm Consolidated Berhad disclosed that its wholly owned
subsidiary Monosetia Sdn Bhd has been served with summons from
Lembaga Hasil Dalam Negeri, acting for the Malaysia Government,
claiming MYR682,359.53 as income tax payment overdue for
assessment year 2001.
Interest penalties of 10%, 10% and 5% had been charged on the
outstanding amount at each due date.
MSB is a major subsidiary of Rhythm Consolidated, however, the
cost of investment in MSB had been fully impaired based on the
RCB's audited financial statements as at June 30, 2008.
RCB said there is no material operational impact arising from the
said summons on the RCB group. Apart from the amount claimed, the
expected losses arising from the summons would be the interest on
the amount claimed and costs to be awarded by the court, if any.
MSB intends to take step to negotiate with Lembaga Hasil Dalam
Negeri and to settle the debts through the group's corporate and
debt restructuring exercise.
About Rhythm Consolidated
Based in Malaysia, Rhythm Consolidated Bhd is an investment
holding company. The Company operates in five business segments:
publishing, trading and distribution of books, paper stationery,
printing paper and instruction manuals; manufacturing of music
books, novels, educational books and paper stationery; import,
wholesale and retail of paper products; marketing of diaries,
organizers, leather and polyvinyl chloride (PVC) folders, wallets,
bags, rain coats and others, and information and communication
technology, which includes credit cards terminal development and
solutions, and system application developer and system support.
During the fiscal year ended June 30, 2007 (fiscal 2007), the
Company acquired an additional 15% of interest in its associated
company namely, Rhythm ICT Services Sdn. Bhd., formerly known as
IQ Card Services Sdn Bhd, (ICT). As a result, the Company owns
55% interest in ICT, and ICT became a subsidiary of the Company.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
May 1, 2009, Rhythm Consolidated Berhad was considered as an
Affected Listed Issuer under Practice Note No. 17/2005 of the
Bursa Malaysia Securities Berhad as the company was unable to
provide a solvency declaration to Bursa as per the announcement of
default in payment by Monosetia Sdn Bhd.
====================
N E W Z E A L A N D
====================
SOUTH CANTERBURY: Rating Cut Triggers US$100 Mln Facility Review
----------------------------------------------------------------
The New Zealand Herald reports that the downgrade of South
Canterbury Finance's credit rating to junk level by Standard &
Poor's will trigger a review of a US$100 million ($147 million)
private placement facility in the United States.
The report says US investors have the option of requiring South
Canterbury Finance to repay the facility. There are five
investors in the facility, the report notes.
According to the report, SCF chief executive Lachie McLeod said
the company had been keeping in contact with the investors, which
it normally did. Mr. McLeod confirmed that the downgrade
triggered a review period of the facility but said the period of
the review was confidential, the Herald said.
Mr. McLeod, as cited by the Herald, said the company was
disappointed at the timing of the downgrade by S&P.
Credit Ratings Downgrade
As reported int Troubled Company Reporter-Asia Pacific on Aug. 17,
2009, Standard & Poor's Ratings Services said that it had lowered
its long-term rating on South Canterbury Finance Ltd. to 'BB+'
from 'BBB-'. The rating outlook is negative. At the same time,
the short-term rating was also lowered to 'B' from 'A-3'. The
ratings were also removed from CreditWatch with negative
implications, where they were placed on July 7, 2009. The
negative outlook implies a one-in-three likelihood of a rating
downgrade within the next 12 months.
"The downgrade reflects S&P's view that SCF's credit profile has
weakened because of asset quality pressures within the New Zealand
property development sector," Standard & Poor's credit analyst
Derryl D'silva said. In S&P's view, this deterioration is outside
its tolerances of the 'BBB-' rating and has occurred amid a weak
industry environment, where the potential for lending losses is
exacerbated by the softening trends in the New Zealand economy.
The property development sector is currently experiencing very low
business confidence and faces reduced investor demand and limited
refinancing options. With this downgrade, a rating trigger on
SCF's US$100 million private-placement facility may be invoked.
Private placement investors have an option to review their funding
support for SCF after the downgrade, which if it resulted in a
requirement to repay the facility, has the potential to
exacerbate SCF's already modest liquidity position.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on-
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance. Southbury Group
Limited holds a controlling interest interest in the Company. Its
subsidiaries include Ashburtin Finance Ltd, Auckland Fianace Ltd,
Canterbury Finance Ltd, Coversure Guarantee Ltd, Face Finance Ltd,
Helicopter Nominees Ltd, Hotnchurch Ltd, Otage Finance Ltd,
Palmerston North Finance Ltd, Rental cars Ltd, ZSCFG Systems Ltd,
Walkato Finance Ltd and Wellington Finance Ltd.
=============
N I G E R I A
=============
INTERCONTINENTAL BANK: Fitch Cuts Issuer Default Rating to 'B'
--------------------------------------------------------------
Fitch Ratings has downgraded Intercontinental Bank Plc's Long-term
Issuer Default rating to 'B' from 'B+'. The Long-term IDR has a
Stable Outlook.
Its Support Rating Floor has also been revised to 'B' from 'B+'.
The Individual rating has been downgraded to 'D/E' from 'D'. In
addition, Fitch has downgraded Intercontinental's National Long-
term rating to 'A-(nga)' from 'A+(nga)' and National Short-term
rating to 'F2(nga)' from 'F1(nga)'. Intercontinental's Short-term
IDR is affirmed at 'B' and its Support rating at '4'.
Intercontinental's IDRs, Support Rating, Support Rating Floor and
National ratings are based solely on the potential for support by
the authorities. While Fitch believes there is a strong
willingness from the authorities to support in case of need, the
ability is constrained by Nigeria's IDR of 'BB-'.
The downgrades reflect the liquidity pressures that
Intercontinental has been facing since 2008, which in Fitch's view
have negatively affected the bank. These issues are balanced by
the bank's size in the domestic market and capital adequacy
levels, which continue to be above 20%. The pressures on funding
and liquidity have coincided with a downturn in the economy and
the local stock market. Increased funding costs and higher
impairment charges relating to share-backed lending as well as
other sectors have impacted overall profitability. Fitch expects
the operating environment to remain challenging and to weigh on
the bank's revenue generation during the rest of 2009 and possibly
into 2010, although the bank's capitalization continues to be
viewed as adequate by the agency.
In the light of these events, Fitch has also reappraised its view
of the relative strength of Intercontinental's domestic franchise
and, as a result, the likelihood of support from the authorities,
and has revised down the Support Rating Floor to 'B'.
Intercontinental is one of the largest banks in Nigeria by system
assets and capitalization. The bank commenced operations in
February 1989 and provides universal banking services to
multinationals, large domestic corporates, SMEs, and individuals.
In Fitch's rating criteria, a bank's stand-alone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings. Collectively, these
ratings drive Fitch's Long- and Short-term IDRs.
=================
S I N G A P O R E
=================
BLACK ICE: Court Enters Wind-Up Order
-------------------------------------
On August 7, 2009, the High Court of Singapore entered an order to
wind up the operations of Black Ice Capital Pte Ltd.
Phillip Futures Pte Ltd filed the petition against the company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee’s Office
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
LOLA PROPERTIES: Creditors' Proofs of Debt Due on August 28
-----------------------------------------------------------
Lola Properties Pte. Ltd., which is in liquidation, requires its
creditors to file their proofs of debt by August 28, 2009, to be
included in the company's dividend distribution.
The company's liquidators are:
Shirley Lim Guat Hua
Lim Peng Huat
c/o 10 Anson Road
#15-07 International Plaza
Singapore 079903
OCEAN PARK: Creditors' Proofs of Debt Due on September 14
---------------------------------------------------------
Ocean Park Seafood Restaurant Pte Ltd, which is under members'
voluntary liquidation, requires its creditors to file their proofs
of debt by September 14, 2009, to be included in the company's
dividend distribution.
The company's liquidators are:
Kelvin Thio
Terence Ng
c/o Ardent Business Advisory Pte Ltd
19 Kim Keat Road
#01-03 Fu Tsu Building
Singapore 328804
SO SAY: Creditors' Meeting Set for August 28
--------------------------------------------
So Say Cheong Pte Ltd, which is under judicial management, will
hold a meeting for its creditors on August 28, 2009, at 3:00 p.m.
The company's judicial managers are:
Chee Yoh Chuang
Eu Chee Wei David
c/o Stone Forest Corporate Advisory Pte Ltd
8 Wilkie Road #03-08
Wilkie Edge
Singapore 228095
* SINGAPORE: Retail Sales Down 8.2% in June 2009
------------------------------------------------
Singapore retail sales dropped for the ninth consecutive month in
June as the city-state slowly emerges from a severe recession, the
Associated Press reports.
Citing statistics data released by Singapore's statistics
department, the AP relates that retail sales fell 8.2% from a year
earlier after dropping 10.4% in May and 11.7% in April.
The AP says rising job losses and a slump in tourist arrivals have
undermined retail sales. According to the AP, Singapore's economy
grew for the first quarter in a year in the April to June period
as gross domestic product expanded an annualized seasonally
adjusted 20.7 percent.
The department, according to the AP, said sales of motor vehicles
fell 23%, jewelry and watches dropped 13%, and apparel and
footwear slid 2.5%%. Computer and telecom equipment sales jumped
14% as retailers slashed prices, the department stated.
======================
S O U T H A F R I C A
======================
MFP FINANCE: Moody's Takes Rating Action on Class A Notes
---------------------------------------------------------
Moody's Investors Service has taken this rating action on the
notes issued by MfP Finance (Pty) Ltd:
-- the ratings have been withdrawn on the Class A Notes.
These ratings were previously on July 31, 2009, downgraded to
Ba3.za and placed under review for possible downgrade. The Ba3.za
national scale rating on the notes can be translated into a B3
rating on the global scale.
The rating of the Class A notes has been withdrawn at the request
of the trustee, the investors and the issuer.
MfP Finance (Pty) Ltd is a securitization of trade receivables
originated by MfP Logistics and other group companies in South
Africa. The originator is currently in liquidation.
===========
T A I W A N
===========
AU OPTRONICS: Gets Up to 50% Subsidy for EPD Development
--------------------------------------------------------
Taiwan's Ministry of Economic Affairs has agreed to subsidize
AU Optronics Corp. for its development 3.5G flexible high-end
electrophoretic display, DIGITIMES reports.
According to the report, the MOEA said the government will
subsidize up to 50% of the EPD project, which is expected to help
expand the LCD panel maker's share in the EPD market.
The report relates the project is led by AUO, with cooperation
coming from color filter maker Cando, LCD component supplier Daxin
Materials and equipment supplier Gallant Precision Machining
(GPM).
Based in Taiwan, AU Optronics Corp. -- http://www.auo.com/--
designs, develops, manufactures, assembles and markets flat panel
displays. The Company's principal products are thin-film
transistor-liquid crystal display (TFT-LCD) panels. Its panels
are used in computer products, such as notebook computers and
desktop monitors; consumer electronics products, such as mobile
phones, digital photo frames, digital still cameras, portable
navigation display, portable digital video disc players, LCD
televisions, and industrial displays. The Company sells its
panels primarily to original equipment manufacturing service
providers or brand customers. The Company groups its business
into three marketing channels: Information Technology Displays,
Consumer Products Displays and Television Displays. In March 2008
and June 2008, the Company acquired 45% and 26% of equity
interests in Verticil Electronic Corp. and Dazzo Technology
Corporation, respectively.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
July 6, 2009, Fitch Ratings downgraded AU Optronics Corporation's
Long-term foreign and local currency Issuer Default Ratings to
'B+' from 'BB-', and its National Long-term Rating to 'BBB-(twn)'
from 'BBB(twn)'. The Outlook remains Negative. The rating
actions reflect the agency's view that the company's projected
credit metrics for 2009 will not be comparable to its peers in the
'BB' category.
===============
X X X X X X X X
===============
DELPHI CORP: Exhaust Business Sale to Bienes Turgon Completed
-------------------------------------------------------------
Delphi Corporation has closed the sale to Mexican company Bienes
Turgon of assets and shares related to the company's global
exhaust business in Shanghai, China and Gurgaon, India. Bienes
Turgon officially begins operation of this business in China and
India on August 1, 2009, under the name Katcon Global. Bienes
Turgon had previously purchased assets and shares related to the
company's global exhaust business in Blonie, Poland; Clayton,
Australia; Port Elizabeth, South Africa; joint venture interests
in Monterrey, Mexico; technical centers in Auburn Hills, Mich.
USA; and Bascharage, Luxembourg.
As announced in December 2008, Delphi received approval from the
U.S. Bankruptcy Court for the Southern District of New York for
the sale of assets related to the company's global exhaust
business to Bienes Turgon.
Although the company is divesting its exhaust business, Delphi
Powertrain Systems continues to provide full engine
management systems (EMS) -- including air and fuel management,
combustion and valve train technology -- through its gas EMS
product business unit.
About Delphi Corp
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is a global supplier of mobile
electronics and transportation systems, including powertrain,
safety, steering, thermal, and controls & security systems,
electrical/electronic architecture, and in-car entertainment
technologies. Delphi technology is also found in computing,
communications, consumer accessories, energy and medical
applications. Delphi has approximately 146,600 employees and
operates 150 wholly owned manufacturing sites in 34 countries with
sales of $18.1 billion in 2008.
The Company filed for Chapter 11 protection on October 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court confirmed Delphi's plan on January 25, 2008. The Plan
was not consummated after a group led by Appaloosa Management,
L.P., backed out from their proposal to provide US$2,550,000,000
in equity financing to Delphi.
At the end of July 2009, Delphi obtained confirmation of a revised
plan, build upon a sale of the assets to a entity formed by some
of the lenders who provided $4 billion of debtor-in-possession
financing, and General Motors Company.
Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy
News. The newsletter tracks the Chapter 11 proceedings of Delphi
Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/
or 215/945-7000)
* BOND PRICING: For the Week August 10 to August 14, 2009
-------------------------------------------------------
AUSTRALIA
---------
Ainsworth Game 8.000% 12/31/09 AUD 0.65
AMP Group Financ 9.803% 04/01/19 NZD 0.88
Antares Energy 10.000% 10/31/13 AUD 1.85
Babcock & Brown Pty 8.500% 11/17/09 NZD 45.89
Becton Property Group 9.500% 06/30/10 AUD 0.36
Bemax Resources 9.375% 07/15/14 USD 67.50
Bemax Resources 9.375% 07/15/14 USD 67.50
Bounty Industries Ltd 10.000% 06/30/10 AUD 0.03
Capral Aluminum 10.000% 03/29/12 AUD 19.00
CBD Energy Ltd 12.500% 01/29/11 AUD 0.10
Centaur Mining 11.000% 12/01/07 USD 0.00
China Century 12.000% 09/30/10 AUD 0.55
CIT Group Au Ltd 6.000% 03/03/11 AUD 72.57
Djerriwarrh Inv 6.500% 09/30/09 AUD 4.11
First Australian 15.000% 01/31/12 AUD 0.70
Griffin Coal Min 9.500% 12/01/16 USD 52.25
Griffin Coal Min 9.500% 12/01/16 USD 52.25
Heemskirk Consol 8.000% 04/29/11 AUD 2.20
Insurance Austra 5.625% 12/21/26 GBP 66.00
Jpm Au Enf Nom 1 3.500% 06/30/10 USD 1.81
Macquarie Bank 6.500% 05/31/17 AUD 50.18
Minerals Corp 10.500% 09/30/09 AUD 0.55
Metal Storm 10.000% 09/01/09 AUD 0.10
Nylex Ltd 10.000% 12/08/09 AUD 0.84
Orchard Invest 9.000% 12/15/10 AUD 29.50
Resolute Mining 12.000% 12/31/12 AUD 0.70
Sun Resources NL 12.000% 06/30/11 AUD 0.30
Suncorp-Metway 6.500% 06/22/16 AUD 67.12
Timbercorp Ltd 8.900% 12/01/10 AUD 26.10
CHINA
-----
China Govt Bond 4.860% 08/10/14 CNY 0.00
Chinatrust Comm 5.625% 03/29/49 CNY 72.50
Jiangxi Copper 1.000% 09/22/16 CNY 70.93
INDIA
-----
Aftek Infosys 1.000% 06/25/10 USD 62.50
AKSH Optifibre 1.000% 01/29/10 USD 58.00
Flex Industries 4.000% 03/09/12 USD 59.25
Gemini Commnica 6.000% 07/18/12 EUR 57.50
Hindustan Cons 10.000% 10/25/09 INR 20.00
ICICI Bank Ltd 7.250% 08/29/49 USD 72.12
Kei Industries 1.000% 11/30/11 USD 66.75
Sterling Biotech 0.500% 09/30/10 USD 64.41
Subex Azure 2.000% 03/09/12 USD 29.33
Wanbury Ltd 1.000% 04/23/12 EUR 69.50
JAPAN
-----
Aiful Corp 4.450% 02/16/10 USD 69.00
Aiful Corp 4.450% 02/16/10 USD 69.00
Aiful Corp 5.000% 08/10/10 USD 48.50
Aiful Corp 5.000% 08/10/10 USD 48.50
Aiful Corp 1.580% 05/26/11 USD 73.08
Aiful Corp 1.500% 10/20/11 JPY 55.92
Aiful Corp 6.000% 12/12/11 USD 38.00
Aiful Corp 6.000% 12/12/11 USD 38.00
Aiful Corp 1.200% 01/26/12 JPY 54.04
Aiful Corp 1.990% 03/23/12 JPY 51.07
Aiful Corp 1.220% 04/20/12 JPY 63.72
Aiful Corp 1.630% 11/22/12 JPY 60.14
Belluna Co. Ltd. 1.100% 03/31/21 JPY 74.21
CSK Corporation 0.250% 09/30/13 JPY 49.00
Daikyo Inc. 1.880% 03/12/12 JPY 70.06
Japan Airlines 3.100% 01/22/18 JPY 73.97
JPN Exp Hld/Debt 0.500% 09/17/38 JPY 55.96
Nippon Residentl 0.840% 09/24/10 JPY 73.86
Nippon Residentl 1.840% 02/09/12 JPY 73.00
Nippon Residentl 1.900% 09/13/12 JPY 72.90
Nippon Residentl 1.280% 09/24/12 JPY 72.59
Nis Group 8.060% 06/20/12 USD 46.62
Orix Corp 2.190% 04/18/17 JPY 73.40
Shinsei Bank 3.750% 02/23/16 JPY 68.75
Shinsei Bank 5.625% 12/29/49 GBP 55.00
Takefuji Corp 9.200% 04/15/11 JPY 48.37
Takefuji Corp 9.200% 04/15/11 USD 48.37
Takefuji Corp 8.000% 11/01/17 USD 40.12
Takefuji Corp 4.000% 06/05/22 JPY 64.63
Takefuji Corp 4.500% 10/22/32 JPY 58.12
MALAYSIA
--------
Advance Synergy Berhad 2.000% 01/26/18 MYR 0.07
Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 1.00
Berjaya Land Bhd 5.000% 12/30/09 MYR 3.51
Crescendo Corp B 3.750% 01/11/16 MYR 0.82
Dutaland Bhd 4.000% 04/11/13 MYR 0.77
Dutaland Bhd 4.000% 04/11/13 MYR 0.47
Eastern & Orient 8.000% 07/25/11 MYR 1.27
EG Industries 5.000% 06/06/10 MYR 0.38
Huat Lai Resources 5.000% 03/28/10 MYR 0.22
Kamdar Group Bhd 3.000% 11/09/09 MYR 0.26
Kretam Holdings 1.000% 08/10/10 MYR 1.12
Kumpulan Jetson 5.000% 11/27/12 MYR 0.49
LBS Bina Group 4.000% 12/31/09 MYR 0.45
Lion Diversified 4.000% 12/17/13 MYR 0.93
Mithril Bhd 3.000% 04/05/12 MYR 0.54
Nam Fatt Corp 2.000% 06/24/11 MYR 0.22
Olympia Industri 2.800% 04/11/13 MYR 0.21
Olympia Industri 4.000% 04/11/13 MYR 0.23
Plus SPV Bhd 2.000% 06/27/18 MYR 74.55
Plus SPV Bhd 2.000% 03/11/19 MYR 72.94
Puncak Niaga Hld 2.500% 11/18/16 MYR 0.70
Rubberex Corp 4.000% 08/14/12 MYR 1.04
Talam Corp Bhd 2.000% 06/28/19 MYR 23.39
Tradewinds Corp 2.000% 02/08/12 MYR 0.80
Tradewinds Plant 3.000% 02/28/16 MYR 1.10
TRC Synergy 5.000% 01/20/12 MYR 1.10
Wah Seong Corp 3.000% 05/21/12 MYR 2.30
Wijaya Baru Glob 7.000% 09/17/12 MYR 0.38
YTL Cement Bhd 4.000% 11/10/15 MYR 2.07
NEW ZEALAND
-----------
Allied Farmers 9.600% 11/15/11 NZD 74.16
Allied Nationwid 11.520% 12/29/49 NZD 41.00
BBI Ntwrks NZ Ltd 8.000% 11/30/12 NZD 0.42
Blue Star Print 9.100% 09/15/12 NZD 18.99
Capital Prop NZ 8.000% 04/15/10 NZD 14.50
Contact Energy 8.000% 05/15/14 NZD 1.01
Fidelity Capital 9.250% 07/15/13 NZD 73.90
Fletcher Buildin 7.550% 03/15/11 NZD 8.45
Fletch Build Fin 8.850% 03/15/10 NZD 8.70
Fletcher Bui 8.500% 03/15/15 NZD 9.25
Fonterra 8.740% 11/29/49 NZD 71.00
Infrastr & Util 8.500% 09/15/13 NZD 9.70
Infratil Ltd 8.500% 11/15/15 NZD 10.10
Infratil Ltd 10.180% 12/29/49 NZD 66.00
Marac Finance 10.500% 07/15/13 NZD 0.55
Provencocadmus 2.000% 04/15/10 NZD 0.68
South Canterbury 10.500% 06/15/11 NZD 0.73
South Canterbury 10.430% 12/15/12 NZD 0.59
St Laurence Prop 9.250% 05/15/11 NZD 67.48
Tower Capital 8.500% 04/15/14 NZD 0.99
Trustpower Ltd 8.500% 09/15/12 NZD 7.60
Trustpower Ltd 8.500% 03/15/14 NZD 8.00
Vector Ltd 7.800% 10/15/14 NZD 1.00
Vector Ltd 8.000% 12/29/49 NZD 7.65
SINGAPORE
---------
Capitaland Ltd 2.950% 05/20/22 SGD 74.80
Sengkang Mall 8.000% 11/20/12 SGD 1.20
WBL Corporation 2.500% 06/10/14 SGD 1.79
SOUTH KOREA
-----------
United Eng 1.000% 03/03/14 SGD 1.30
Woori Bank 6.208% 05/02/37 USD 74.04
SRI LANKA
---------
Sri Lanka Govt 7.500% 08/15/18 LKR 71.48
Sri Lanka Govt 7.000% 10/01/23 LKR 61.88
*********
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. Valerie C. Udtuhan, Marites O. Claro,
Rousel Elaine C. Tumanda, Joy A. Agravante, 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 ***