/raid1/www/Hosts/bankrupt/TCRAP_Public/091007.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, October 7, 2009, Vol. 12, No. 198
Headlines
A U S T R A L I A
FINCORP INVESTMENTS: Former Executives Face Five Year Jail Term
GREAT SOUTHERN: Receivers Get 'Strong Interest' in Timber Assets
WESTPOINT GROUP: Former Chief Appears in Sydney Court
C A M B O D I A
* CAMBODIA: At Least 20,000 Garment Workers Lose Jobs This Year
C H I N A
CHINA MINSHENG: Mulls Plan to Increase Holdings in UCBH
INDUSTRIAL AND COMMERCIAL: Thailand to Consider ICBC Bid for ACL
SHIMAO PROPERTY: Moody's Affirms 'Ba3' Corporate Family Rating
H O N G K O N G
ASIAN CONCORD: In Voluntary Wind-Up Proceedings
CHINA AURAL-LASERPUNTURE: In Voluntary Wind-Up Proceedings
ERSTE VIENNA: Commences Wind-Up Proceedings
EF TECHNOLOGY: Commences Wind-Up Proceedings
GRAND SMOOTH: Creditors' Meeting Set for October 23
GREEN DRAGON: Earns US$30,900 in First Quarter Ended June 30
HA PAK: Placed Under Voluntary Wind-Up Proceedings
JET CHARTER: Placed Under Voluntary Wind-Up Proceedings
LEESPEED COMPANY: Creditors' Proofs of Debt Due on October 19
LINFAIR CAPITAL: Placed Under Voluntary Wind-Up Proceedings
LEGACY BULK: Members' Final Meeting Set for November 16
PROFIT HARBOUR: Placed Under Voluntary Wind-Up Proceedings
PARENT EDUCATION: Creditors' Proofs of Debt Due on November 6
STUBBINGTON LIMITED: Appoints Wadham and Paul as Liquidators
SAIMA AVANDERO: Commences Wind-Up Proceedings
SAINT SAAR: Placed Under Voluntary Wind-Up Proceedings
TOPASIA INTERNATIONAL: Creditors' Proofs of Debt Due on Nov. 5
WYNN RESORTS: Prices HongKong IPO at HK$10.08 Per Share
YUEN HUNG: Creditors' Proofs of Debt Due on October 16
YIP MOU: Placed Under Voluntary Wind-Up Proceedings
I N D I A
ACTIF CORPORATION: Fitch Assigns 'BB+' National Long-Term Rating
AMUL AUTO: CARE Assigns 'BB+ (SO)' Rating to Bank Facilities
AMUL CRANKCASE: CARE Rates INR9.19cr Bank Facilities at 'BB+ (SO)'
AMUL CRANKSHAFT: CARE Assigns 'BB+ (SO)' Rating to Bank Facilities
ANSAL PROPERTIES: Fitch Downgrades National Rating to 'D'
ADICO FORGE: CARE Places 'BB+ (SO)' Rating on LT Bank Facilities
PARSVNATH DEVELOPERS: Fitch Cuts National Long-Term Rating to 'D'
BEST INDIA: ICRA Assigns 'LBB' Rating on INR10MM Bank Facilities
MAGPPIE INTERNATIONAL: Stressed Liquidity Cues ICRA 'LBB' Ratings
VISHAL RETAIL: CARE Cuts Ratings on Long-Term Bank Debts to 'C'
I N D O N E S I A
BANK CENTURY: Changes Name to Bank Mutiara
BANK NEGARA: Shareholders OK Plan to Create Islamic Banking Unit
PT BERLIAN: Fitch Puts 'B' Issuer Default Rating on Negative Watch
J A P A N
GIANNI VERSACE: To Close Japan Stores; Review Business Strategy
JAPAN AIRLINES: To Shelve Tie-Up Talks with Delta, AMR
L-JAC 3: Fitch Downgrades Ratings on Eight Classes of Notes
L-JAC FIVE: S&P Puts Ratings on Notes on CreditWatch Negative
MAZDA MOTOR: Plans to Raise US$1.1 Billion; Cuts Loss Forecast
WMT GLOBAL: S&P Downgrades Ratings on Various Classes of Notes
T A I W A N
AU OPTRONICS: Faces NT$140,000 Fine on Environmental Law Violation
NANYA TECHNOLOGY: Posts Highest Monthly Sales in Two Years
TPO DISPLAYS: Acquired by Innolux in NT$21-Bil. Share Swap
T H A I L A N D
GENERAL MOTORS: Shutters Thai Assembly Plant Amid Strike
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
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A U S T R A L I A
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FINCORP INVESTMENTS: Former Executives Face Five Year Jail Term
---------------------------------------------------------------
The former Chairman and CEO of Fincorp Investments Limited,
Mr. Eric Krecichwost and the former finance director Mr. Jacob Lee
Quigley, appeared Tuesday in Downing Centre Local Court in Sydney
on charges brought by the Australian Securities and Investments
Commission (ASIC).
Mr. Krecichwost has been charged with three counts of dishonestly
using his position as a director of a company with the intention
of directly or indirectly gaining an advantage for himself and
others. Mr. Quigley faces one charge of the same count.
The charges against Mr. Krecichwost relate to three cheques for
AU$900,000, AU$825,000 and AU$1,980,000 ASIC alleges he signed in
September and October 2003. The charge against Mr. Quigley
involves the AU$1,980,000 cheque that Mr. Quigley is also alleged
to have signed in October 2003.
The maximum penalty for each offence is five years imprisonment or
AU$220,000 or both.
Mr. Krecichwost and Mr. Quigley pleaded not guilty to all charges
and were bailed to appear again on December 15, 2009.
The matter is being prosecuted by the Commonwealth Director of
Public Prosecutions.
About Fincorp
Fincorp Group -- http://www.fincorp.com.au/-- is a boutique
funds management and property development business that
focuses on mortgage-backed and property products. It is based
in Grosvenor Place, Sydney, with around 40 employees across New
South Wales, Victoria, and Queensland.
Two companies with the Fincorp Group (Fincorp Financial Services
Limited and Fincorp Managed Investments Limited) hold Australian
Financial Services Licenses and act as Responsible Entities
under the Corporations Act 2001. Fincorp and its Funds are
regulated by the Australian Securities and Investment
Commission.
* * *
On March 27, 2007, the Troubled Company Reporter-Asia Pacific
reported that Fincorp Group went into administration with
AU$290 million in debt, of which AU$200 million were owed to
investors and AU$90 million to external financiers.
David Winterbottom was appointed as administrator together with
Mark Korda and Lachlan McIntosh, partners at corporate recovery
firm KordaMentha.
Fincorp Group has reportedly been struggling under heavy inter-
company debt loads and negative cashflow, the TCR-AP cited a
report from The Australian, published on March 26, 2007.
GREAT SOUTHERN: Receivers Get 'Strong Interest' in Timber Assets
----------------------------------------------------------------
ABC News reports that McGrathNicol, the receiver of Great
Southern, said there has been strong interest in the company's
pulpwood timber assets, including those in South Australia's
south-east.
One of the companies expressing interest in certain forestry
managed investment schemes is timber group Gunns Ltd, the report
says.
ABC News notes the receiver said it is now sorting through the
offers, with binding offers expected to be finalised within six
weeks.
Meanwhile, Great Southern said in ASX filing that five directors
have resigned from its board. Directors David Charles Griffiths,
John Carlton Young, Alice McCleary, Peter Mansell and Mervyn
Peacock have resigned effective September 30, 2009.
About Great Southern
Based in West Perth, Australia, Great Southern Limited (ASX:GTP)
-- http://www.great-southern.com.au/-- is engaged in the
development, marketing, establishment and management of
agribusiness-based projects. The Company provides finance,
directly and through third party financiers, to approved investors
who wish to invest in the Company's projects. The Company also
acquires and manages farmland and other agribusiness related
properties which are held for long term investment. It operates
an agricultural investment services business offering two key
products: agricultural managed investment schemes, which is
provision of MIS products in the forestry and agribusiness sector,
and agricultural funds management, which are agricultural
investment funds providing investors exposure to a portfolio of
agricultural assets. Great Southern manages about 43,000
investors through 45 managed investment schemes. The group owns
and leases approximately 240,000 hectares of land. It also owns
more than 150,000 cattle across approximately 1.5 million hectares
of owned and leased land.
Great Southern entered into voluntary administration in May. The
directors of Great Southern Limited and Great Southern Managers
Australia Limited appointed Martin Jones, Andrew Saker, Darren
Weaver and James Stewart of Ferrier Hodgson as administrators of
the two companies and majority of their units. McGrathNicol was
appointed receivers to the company and certain of its subsidiaries
by a security trustee on behalf of a group of secured creditors.
As of April 30, 2009, Great Southern had total liabilities of
AU$996.4 million, including loans and borrowings of AU$833.9
million. The loans and borrowings included AU$375 million from
the group banks. The secured creditors include ANZ, Commonwealth
Bank and BankWest.
WESTPOINT GROUP: Former Chief Appears in Sydney Court
-----------------------------------------------------
Westpoint Group's former chief financial controller, Graeme
Rundle, appeared Tuesday in the Downing Centre Local Court,
Sydney, in relation to two criminal charges brought by the
Australian Securities & Investments Commission.
Mr. Rundle, 44, was charged with two offences of making a false
statement with intent to obtain a financial advantage in
contravention of section 178BB of the NSW Crimes Act.
Each offence carries a maximum penalty of five years’
imprisonment.
ASIC alleges that in May 2004, Mr. Rundle made false statements to
a financial institution in support of an application for a
AU$71 million credit facility to fund a Westpoint building project
known as the Scots Church Development on York Street in Sydney.
ASIC said that throughout the period relevant to the offences,
Mr. Rundle was the Chief Financial Controller of the Westpoint
Group of companies. He was also director and secretary of Scots
Church Development Ltd and secretary of York Street Mezzanine Pty
Ltd. Scots Church Development and York Street Mezzanine were
entities within the Westpoint Group of companies.
The matter, which is being prosecuted by the Commonwealth Director
of Public Prosecutions, returns to Court on November 24, 2009.
About Westpoint Group
Headquartered in Perth, Western Australia, the Westpoint Group
-- http://westpoint.com.au/-- is engaged in property
development and owns or manages retail and commercial properties
with a total value of over AU$300 million. The Group's troubles
began in 2005 when the Australian Securities and Investments
Commission commenced investigations on 160 companies within the
Westpoint Group. The ASIC's investigation led to ASIC
initiating action in late 2005 in the Federal Court of Australia
against a number of mezzanine companies in the Westpoint Group,
including winding up proceedings. The ASIC contends that
Westpoint projects are suffering from significant shortfall of
assets over liabilities so that hundreds of investors are at
serious risk of not receiving repayment of their investments.
The ASIC also sought wind-up orders after the Westpoint
companies failed to comply with its requirement to lodge
accounts for certain financial years. These wind-up actions are
still continuing.
In February 2006, the Federal Court in Perth issued a wind-up
order against Westpoint Corporation Pty Ltd. The ASIC had
applied to wind up the company on grounds of insolvency. The
ASIC believes that Westpoint Corporation is responsible for
arranging, managing and coordinating Westpoint Group's property
projects as well as holding money for other group companies.
The ASIC was concerned that Westpoint Corporation was unable to
pay its debts, including its obligations under the guarantees
given to the mezzanine companies to make good expected
shortfalls in the repayment of amounts owed to investors.
The Westpoint Group's collapse is considered by many as the
largest of its type in recent years, with small investors being
the biggest group affected. Investors are currently joining
forces to commence a class action against Westpoint and its
advisors.
===============
C A M B O D I A
===============
* CAMBODIA: At Least 20,000 Garment Workers Lose Jobs This Year
---------------------------------------------------------------
At least 20,000 workers in Cambodia's garment industry lost their
jobs this year due to the global economic downturn, the AFP said
citing a labor ministry report.
According to the report obtained by AFP, 77 factories were closed
across the country resulting in the loss of 30,617 jobs between
January and September. AFP relates that the report showed
although 40 new factories opened in the same period and created
more employment, more than 20,000 job losses remained.
Another 53 factories also suspended operations during the period
but about half have reopened, the AFP adds.
"The closure of the factories is due to fewer purchase orders,"
Oum Mean, secretary of state at the Ministry of Labour, told AFP.
The AFP states that Cambodia's garment industry is the
impoverished country's largest source of income, providing 80% of
its foreign exchange earnings and employing an estimated 350,000
people last year.
=========
C H I N A
=========
CHINA MINSHENG: Mulls Plan to Increase Holdings in UCBH
-------------------------------------------------------
China Minsheng Banking Corp. is weighing plans to increase its
stake in UCBH Holdings Inc. to bolster its capital, Bloomberg News
reports citing two people briefed on the matter.
Minsheng plans to seek U.S. regulatory approval to boost its
holding in San Francisco-based UCBH to at least 50% from 9.6%, the
people told Bloomberg. Minsheng already has an option to raise
its stake, to about 20%, Bloomberg says.
According to the report, increasing Minsheng's investment would
allow it to learn more about the U.S. banking market and protect
its holding in UCBH, which is operating under an enforcement order
from banking regulators.
As reported by Troubled Company Reporter on September 10, 2009,
UCBH Holdings, Inc., the holding company of United Commercial Bank
(Bank), entered into an agreement with the Federal Deposit
Insurance Corporation and the California Department of
Financial Institutions (DFI) to enhance the strength and
stability of the Bank and its operations.
About UCBH Holdings, Inc.
UCBH Holdings, Inc. -- http://www.ucbh.com-- is the holding
company for United Commercial Bank, a state-chartered commercial
bank, which is a leading bank in the United States serving the
Chinese communities and American companies doing business in
Greater China. Together, the Bank and its subsidiaries, including
United Commercial Bank (China) Limited, operate 50 California
branches/offices located in the San Francisco Bay Area,
Sacramento, Stockton, Los Angeles and Orange counties, nine
branches in New York, five branches in metropolitan Atlanta, three
branches in New England, two branches in the Pacific Northwest, a
branch in Houston, branches in Hong Kong, Shanghai and Shantou,
China, and representative offices in Beijing, Guangzhou and
Shenzhen, China, and Taipei, Taiwan. UCB, with headquarters in
San Francisco, provides commercial banking services to small- and
medium-sized businesses and professionals in a variety of
industries, as well as consumer and private client services to
individuals. The Bank offers a full range of lending activities,
including commercial real estate and construction loans,
commercial credit facilities, international trade finance, asset-
based financing, cash management, loans guaranteed by the U.S.
Small Business Administration, commercial, multifamily and
residential mortgages, home equity lines of credit, and online
banking services for businesses and consumers.
As reported by the TCR on August 18, 2009, Fitch Ratings
downgraded the long-term Issuer Default Ratings of UCBH Holdings,
Inc., and its bank subsidiary, United Commercial Bank, to 'CC'.
About China Minsheng
Based in Beijing, China, China Minsheng Banking Corporation Ltd.'s
mainly provides commercial banking services that include absorbing
public deposits, providing short term, medium term, and long term
loans, making domestic and international settlement, discounting
bills and issuing financial bonds.
* * *
China Minsheng Banking Corporation Ltd continues to carry Fitch
Ratings' individual rating of "D" and support rating at "3".
INDUSTRIAL AND COMMERCIAL: Thailand to Consider ICBC Bid for ACL
----------------------------------------------------------------
Thailand will consider Industrial & Commercial Bank of China
Ltd.'s tender offer to buy a stake in ACL Bank Pcl at THB11.50 a
share if there is "no better" proposal from other potential
buyers, Bloomberg News reports citing Thailand's Finance Minister
Korn Chatikavanij.
As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 1, 2009, ICBC and Bangkok Bank Public Company Limited have
reached an agreement on the sale and purchase of shares in ACL
Bank Public Company Limited. At the same time, ICBC declared that
it will make a tender offer to all shareholders of ACL. The
transfer by BBL of its shares in ACL to ICBC under the agreement
above will be completed as part of the said tender offer.
Under the agreement between ICBC and BBL, BBL will sell its entire
19.26% stake in ACL to ICBC at the price of THB11.5 per share.
Meanwhile, ICBC will make a conditional tender offer to all
shareholders of ACL for all outstanding ACL shares at the same
price. The tender offer will become effective upon ICBC receiving
acceptances in respect of 51% or more of the outstanding ACL
shares. Through the above transaction, ICBC may be able to
acquire up to 100% shareholding of ACL.
About ACL Bank
ACL Bank Public Company Limited (BAK:ACL) --
http://www.aclbank.com/th/--formerly Asia Credit Public Company
Limited, is a Thailand-based commercial bank. ACL Bank offers a
variety of financial services, including lending and deposit
acceptance through the issuance of promissory notes, short-term
and long-term loans, project financing, and syndication loans. In
addition, it also offers the suite of services in international
trade finance through its import and export bill operations,
combined with a full foreign exchange capability. The Bank offers
all types of loans and investment products, effect money
transfers, and undertake all forms of import and export services
in international trade. ACL BANK also provides financial advisory
services. Its subsidiaries include ACL Securities Co., Ltd. and
Leasing Sinn Asia Co., Ltd.
About ICBC
The Industrial and Commercial Bank of China (ICBC) --
http://www.icbc.com.cn/-- is the largest state-owned commercial
bank, and is authorized by the State Council and the People's Bank
of China. ICBC conducts operations across China as well as in
major international financial centers.
* * *
ICBC continues to carry Fitch Ratings' Individual D rating.
On May 4, 2007, Moody's Investors Service affirmed Industrial &
Commercial Bank of China Ltd's Bank Financial Strength Rating at
D-. The outlook for BFSR is stable.
SHIMAO PROPERTY: Moody's Affirms 'Ba3' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has affirmed Shimao Property Holdings
Limited's Ba3 corporate family rating and its B1 senior unsecured
debt rating. At the same time, Moody's has changed the ratings
outlook to stable from negative.
"The change in Shimao's ratings outlook is supported by recent
favorable developments, including its improved near-term liquidity
position; better-than-expected contract sales in 1H 2009; and the
completion of its acquisition of Shanghai Shimao Co Ltd, a A-share
listed subsidiary that offers it a platform for raising new equity
in China," says Peter Choy, a Moody's Vice President and Senior
Credit Officer.
"At the same time, Moody's foresee heavy payment obligations
arising from more land acquisitions and larger scales of
development in the next 12 -- 18 months, which will weaken
Shimao's strong balance sheet liquidity with cash holdings of
around RMB9 billion as of June 30, 2009. Nevertheless, Moody's
draw comfort from the company's improved abilities in sales
execution and its demonstrated good access to the domestic bank
market," says Choy, also a lead analyst for Shimao.
Moody's notes that Shimao's Ba3 rating continues to reflect its
large scale of development, diversified and well-located land
bank, and steady income from a portfolio of quality investment
properties. It also reflects its ability to issue equity to keep
debt/capital leverage at a moderate 45% - 50%.
On the other hand, these strengths are counterbalanced by its
aggressive land acquisitions, which could weaken its liquidity
position, and its financial profile stays vulnerable to the
cyclical nature of China's property market.
"Shimao's profit margin has been weakened by projects in second-
tier cities in China, leading in turn to weaker credit metrics in
1H 2009," comments Choy, adding, "We expect Shimao's gross profit
margin of around 35% - 40% will be lower than the levels recorded
in 2007-2008. Moreover, the higher debt needed to fund its
projects would result in EBITDA/interest of 3.0 - 3.5x and
debt/total capitalization of 45% - 50%, which appropriately
position the company at the current rating level."
The ratings could experience pressure for an upgrade if Shimao
maintains its strong abilities in sales execution and its adequate
cash buffer, as well as adopt a cautious approach to land
acquisitions and prudent practices in regard to financial
management.
Under such circumstances, Moody's would expect (a) the company to
maintain a balance sheet with unrestricted cash of around 8% - 10%
of total assets to support its operations amid a cyclical
operating environment; (b) interest coverage to improve with
EBITDA/interest exceeding 4.0x - 4.5x; and (c) debt/total
capitalization of 40% - 45%.
On the other hand, the ratings could be downgraded if Shimao (a)
continues to fall short of its target sales; (b) experiences a
further weakening of its balance sheet liquidity; and/or (c)
pursues additional aggressive debt-funded land acquisitions.
Under such conditions, the company's operating cash flow would
weaken and interest coverage would deteriorate with
EBITDA/interest falling below 2.5x - 3.0x and debt/capitalization
rising above 50%.
The last rating action was on 9 June 2009 when Moody's affirmed
Shimao's corporate family rating of Ba3 and bond rating of B1 with
a negative outlook following its announcement of a land purchase
in Xiamen City for RMB 3.02 billion.
Shimao Property Holdings Ltd is a Grand Cayman-incorporated
Chinese property developer that was listed on the Hong Kong Stock
Exchange in July 2006. It has 34 projects in 22 cities in Eastern
and North Eastern China.
================
H O N G K O N G
================
ASIAN CONCORD: In Voluntary Wind-Up Proceedings
-----------------------------------------------
At an extraordinary general meeting held on September 24, 2009,
members of Asian Concord Investment Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Francis Wong Man Chung
Lockhart Road, 19/F, No.3
Wanchai, Hong Kong
CHINA AURAL-LASERPUNTURE: In Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on September 29, 2009,
members of China Aural-Laserpunture Physiotherapy Association (HK)
Limited resolved to voluntarily wind up the company's operations.
The company's liquidator is:
Lee King Yue
Hong Kong Trade Centre, 2201
161 Des Vouex Road
Central, Hong Kong
ERSTE VIENNA: Commences Wind-Up Proceedings
-------------------------------------------
Members of Erste Vienna (Asia/Pacific) Limited on September 21,
2009, passed a resolution that voluntarily winds up the company's
operations.
The company's liquidators are:
John Robert Lees
Mat Ng
c/o John Lees Associates
Henley Building, 20/F
5 Queen's Road
Central, Hong Kong
EF TECHNOLOGY: Commences Wind-Up Proceedings
--------------------------------------------
On September 22, 2009, the creditors of EF Technology (HK) Limited
passed a resolution that voluntarily winds up the company's
operations.
The company's liquidators are:
Alan Chung Wah Tang
Wong Kwok Man
Nexxus Building, 6th Floor
41 Connaught Road
Central, Hong Kong
GRAND SMOOTH: Creditors' Meeting Set for October 23
--------------------------------------------------
The creditors of Grand Smooth Shipping Limited will hold their
meeting on October 23, 2009, at 4:00 p.m., for the purposes
provided for in Sections 241, 242, 243, 244, 251, 255A and 283 of
the Companies Ordinance.
The meeting will be held at the Flat E, 15th Floor, Champion
Building, 287-291 Des Voeux Road Central, Hong Kong.
GREEN DRAGON: Earns US$30,900 in First Quarter Ended June 30
------------------------------------------------------------
Green Dragon Wood Products, Inc. reported net income of US$30,900
on net revenues of US$3,336,920 for the three months ended June
30, 2009, compared with net income of US$199,730 on net revenues
of US$5,097,927 in the same period last year. The revenue
decrease was attributed by the Company to the reduction in orders
from construction and renovation project customers.
At June 30, 2009, the Company's consolidated balance sheet showed
US$7,736,444 in total assets, US$5,842,693 in total liabilities,
and US$1,893,751 in total stockholders' equity.
Full-text copies of the Company's consolidated financial
statements for the first quarter ended June 30, 2009, are
available for free at http://researcharchives.com/t/s?4661
Going Concern Doubt
ZYCPA Company Limited, in Hong Kong, expressed substantial doubt
about Green Dragon Wood Products, Inc.'s ability to continue as a
going concern after auditing the Company's consolidated financial
statements for the year ended March 31, 2009. The auditing firm
said that for the year ended March 31, 2009, the Company incurred
a net loss of US$140,805 and suffered from a negative operating
cash flow of US$1,249,961. The continuation of the Company as a
going concern through March 31, 2010, is dependent upon the
continuing financial support of its shareholders and credit
facility from the banks.
About Green Dragon
Based in Kowloon, Hong Kong, Green Dragon Wood Products, Inc., was
incorporated under the laws of the State of Florida on
September 26, 2007. The Company, through its subsidiaries, mainly
engages in re-sale and trading of wood logs, wood lumber, wood
veneer and other wood products in Hong Kong.
HA PAK: Placed Under Voluntary Wind-Up Proceedings
--------------------------------------------------
At an extraordinary general meeting held on September 23, 2009,
members of Ha Pak Nai the Hall of the Goddess of Mercy, Buddhist
and Tin Hau Temple Limited resolved to voluntarily wind up the
company's operations.
The company's liquidator is:
Tang Yu On Be
Registered office
JET CHARTER: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------
At an extraordinary general meeting held on September 24, 2009,
the members of Jet Charter Development Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Cheung Fong Ming
Two International Finance Centre, 72-76/F
8 Finance Street
Central, Hong Kong
LEESPEED COMPANY: Creditors' Proofs of Debt Due on October 19
-------------------------------------------------------------
Creditors of Leespeed Company Limited are required to file their
proofs of debt by October 19, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on September 22, 2009.
The company's liquidator is:
Ting Chek Swee
#16-03 Bangkok Bank Bldg.
180 Cecil Street
Singapore 069546
LINFAIR CAPITAL: Placed Under Voluntary Wind-Up Proceedings
-----------------------------------------------------------
At an extraordinary general meeting held on September 15, 2009,
members of Linfair Capital Limited resolved to voluntarily wind up
the company's operations.
The company's liquidators are:
Ng Kwok Wai
Lui Chi Kit
JCG Building
Unit A, 14/F
16 Mongkok Road, Mongkok
Kowloon, Hong Kong
LEGACY BULK: Members' Final Meeting Set for November 16
-------------------------------------------------------
Members of Legacy Bulk Carriers Co Limited will hold their final
meeting on November 16, 2009, at 11:15 a.m., at the Room 4411,
44th Floor, Cosco Tower, 183 Queen's Road Central, Hong Kong.
At the meeting, Mak Kam Choi Simon, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
PROFIT HARBOUR: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on September 24, 2009,
members of Linfair Capital Limited resolved to voluntarily wind up
the company's operations.
The company's liquidators are:
Edward Simon Middleton
Patrick Cowley
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
PARENT EDUCATION: Creditors' Proofs of Debt Due on November 6
-------------------------------------------------------------
Creditors of Parent Education Promoters Limited are required to
file their proofs of debt by November 6, 2009, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on September 22, 2009.
The company's liquidator is:
Lau Kai Tai
Pico Tower, 13/F
66 Gloucester Road
Wanchai, Hong Kong
STUBBINGTON LIMITED: Appoints Wadham and Paul as Liquidators
------------------------------------------------------------
James Anthony Frank Wadham and Andrew Morrison Paul were appointed
as liquidators of Stubbington Limited on September 23, 2009.
The Liquidators can be reached at:
James Anthony Frank Wadham
Andrew Morrison Paul
Tung Hip Commercial Building, 23/F
244 Des Voeux Road
Central, Hong Kong
SAIMA AVANDERO: Commences Wind-Up Proceedings
---------------------------------------------
On September 25, 2009, members of Saima Avandero Hong Kong Limited
passed a resolution that voluntarily winds up the company's
operations.
The company's liquidator is:
Leslie Chang Shuk Chien
3 Lockhart Road, 12/F
Wanchai, Hong Kong
SAINT SAAR: Placed Under Voluntary Wind-Up Proceedings
------------------------------------------------------
At an extraordinary general meeting held on September 28, 2009,
members of Saint Saar Limited resolved to voluntarily wind up the
company's operations.
The company's liquidator is:
Lee King Yue
Two International Finance Centre, 72-76/F
8 Finance Street
Central, Hong Kong
TOPASIA INTERNATIONAL: Creditors' Proofs of Debt Due on Nov. 5
-------------------------------------------------------
Creditors of Topasia International Limited are required to file
their proofs of debt by November 5, 2009, to be included in the
company's dividend distribution.
The company's liquidator is:
Liu Chi Lai
Wah Kit Commercial Centre, 13/F
302 Des Voeux Road
Central, Hong Kong
WYNN RESORTS: Prices HongKong IPO at HK$10.08 Per Share
-------------------------------------------------------
Wynn Resorts, Limited said that Wynn Macau, Limited, a newly
formed and indirect wholly owned subsidiary of Wynn Resorts,
Limited and a developer, owner and operator of destination casino
gaming and entertainment resort facilities focused exclusively on
Macau, has determined the price for its proposed offering of
1,250,000,000 ordinary shares of Wynn Macau, Limited.
The offering price is HK$10.08 (equivalent to approximately
US$1.30) per share, representing proceeds of approximately
US$1.6 billion and 25% of the post-issuance capital base of Wynn
Macau, Limited. The offering is expected to close on or about
October 9, 2009, subject to the satisfaction of customary closing
conditions.
Headquartered in Las Vegas, Wynn Resorts Limited (Nasdaq: WYNN) --
http://www.wynnresorts.com/-- owns and operates Wynn Las Vegas
and Wynn Macau.
* * *
As reported by the TCR on August 20, 2009, Standard & Poor's
Ratings Services said it affirmed its 'BB' corporate credit rating
on Wynn Resorts Ltd. and its wholly owned subsidiary Wynn Las
Vegas LCC. The rating outlook is negative.
According to the TCR on August 11, 2009, Fitch Ratings assigned
'B+' issuer default rating to Wynn Resorts, Ltd.
The TCR reported on April 24, 2009, that Moody's Investors Service
said that Wynn Resorts, Limited's ratings weren't immediately
affected by the Company's announcement that Wynn Las Vegas, LLC,
entered into a bank loan amendment that provides additional
covenant flexibility and extends the expiration date of its
revolver to 2013 from 2011.
YUEN HUNG: Creditors' Proofs of Debt Due on October 16
------------------------------------------------------
Creditors of Yuen Hung Industries Limited are required to file
their proofs of debt by October 16, 2009, to be included in the
company's dividend distribution.
The company's liquidator is:
Tsang Yiu Wing
Flat C, 7/F
66 Broadway
Mei Fu Sun Chuen
Kowloon
YIP MOU: Placed Under Voluntary Wind-Up Proceedings
---------------------------------------------------
At an extraordinary general meeting held on September 28, 2009,
members of Yip Mou Investment Company Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Lee King Yue
Two International Finance Centre, 76/F
8 Finance Street
Central, Hong Kong
=========
I N D I A
=========
ACTIF CORPORATION: Fitch Assigns 'BB+' National Long-Term Rating
----------------------------------------------------------------
Fitch Ratings has assigned India-based Actif Corporation Limited
(formerly known as Deccan Mills Real Estate & Infrastructure) a
National Long-term rating of 'BB+(ind)'. The Outlook is Stable.
Fitch has also assigned ratings of 'BB+(ind)' to the company's
long-term bank loans aggregating INR1,926 million and cash credit
limits of INR320 million. Simultaneously, Fitch has assigned
F4(ind)' to its INR25 million non-fund based facilities.
The ratings reflect the integrated nature of Actif's operations
(from yarn to grey fabric), its focus on the more stable domestic
textile market, and the benefits derived from Krishna Group's raw
material sourcing strategy. The ratings are also supported by the
sponsors' vast experience in the textile industry and his
demonstrated performance in other companies of similar business
profile across the group. The ratings factor in the benefits
arising from the sizable subordinated loans (INR1130 million) from
the sponsor, although any material reduction could act as a
negative rating factor.
Nonetheless, the ratings are constrained by Actif`s high financial
leverage, which was 13.8x (excluding unsecured loan it was 8.6x)
as at FYE09. This reflects the completion of its large capex of
INR3.9 billion in March 2009, and the benefits of which have
started to accrue in the past five months of the current financial
year. The capex envisaged the modernisation of its spinning and
knitting equipment, as well as increases in capacity. Actif falls
under the same management as its parent, KSL Industries Limted
(KSL Industries), and was consolidated despite the parent holding
just 0.16% of Actif as at FYE09. KSL Industries has provided
Corporate Guarantee for Actif's term loan of INR2000 million;
however, Fitch has taken a standalone view of Actif.
In addition, the ratings are constrained by Fitch's expectation
that pressure on demand and prices will increase due to heightened
competition. Although Actif's sizable yarn capacity could add to
margin volatility, given its sensitivity to cotton prices, these
risks are partly offset by the company's combined sourcing
arrangement and its long track record in cotton purchasing. The
ratings are also constrained by the working capital-intensive
nature of the business, which could put pressure on the company's
liquidity and operating cash flows. With most of its sales being
undertaken through domestic distributors, the current tight
liquidity environment could adversely impact the company's
receivable cycle.
Negative rating factors include greater-than-expected pressure on
working capital and the announcement of additional debt-led capex
plans.. In any case, a net debt/EBITDA of more than 5.0x on a
sustained basis would result in downward rating actions. On the
other hand, a material and sustained improvement in revenues and
margins, resulting in deleveraging over the medium term could act
as a positive rating trigger. Fitch will continue to monitor the
credit profile of KSL Industries, and any deterioration in the
consolidated profile could potentially also act as a negative
trigger.
In FY09, Actif reported net sales of INR1659 million (2008: INR264
million), EBITDA margin of 12.9% (2008: 11.9%) and Net Debt to
EBITDA of 13.92x (2008: 48.27x). Actif is promoted by Mr Saurabh
Kumar Tayal and has the capacity to manufacture 18534 TPA of 30
count cotton yarn and 16640 TPA of 9/10 count coarse cotton yarn.
It also has the facilities to manufacture 19200 TPA of knitted
grey fabrics.
AMUL AUTO: CARE Assigns 'BB+ (SO)' Rating to Bank Facilities
------------------------------------------------------------
CARE has assigned 'CARE BB+ (SO)' [Double B Plus (Structured
Obligation)] rating to the Long-term Bank Facilities of Amul Auto
Components Pvt Ltd aggregating INR6.05 crore. Facilities with
this rating are considered to offer inadequate safety for timely
servicing of debt obligations. Such facilities carry high credit
risk.
CARE assigns '+' or '-' signs to be shown after the assigned
rating (wherever necessary) to indicate the relative position of
the firm within the band covered by the rating symbol.
Rating Rationale
Long-term rating is primarily based on the corporate guarantee
extended by Amul Industries Pvt Ltd (AIPL; rated CARE BB+ and PR4)
to the bank facilities of AAPL.
AIPL's ratings are constrained by its relatively weak financial
profile as indicated by moderate profitability, high debt level
and contingent liability in the form of corporate guarantee
extended to its group companies, putting stress on its liquidity
position.
AIPL's ratings also factor in the instances of delays by these
group companies in servicing their debt obligations. The ratings
however take in to account the well established operations of AIPL
in auto components business and its status as a preferred supplier
by leading OEM auto companies.
AAPL's rating is constrained by the instances of delays in
servicing its debt obligations, its short track record of
operations which made losses and weak financial profile due
to accumulated losses. The weaknesses were offset by corporate
guarantee extended by AIPL. Improvement in debt servicing track
record and scaling up the operations to a self sustaining level
with improvement in financial profile of AAPL and that of AIPL
are the key rating sensitivities for AAPL's rating.
AAPL was incorporated in 2006 with an objective to set up a
dedicated unit for manufacturing crankshafts and connecting rods
for Tata Motors Ltd (TML) at its Rudrapur facility. The unit is
setup in a Special Tata Vendor Park to produce finished
crankshafts and connecting rod. The Company started commercial
production in January 2008 with installed capacity of 2,40,000 Nos
for connecting rod.
Owing to weak industry scenario during FY09, AAPL, along with
other group companies, approached the State Bank of India (SBI) to
reschedule their loan which was granted in February 2009 by which
term loan installments were deferred by 1 year and 9 months
(September 2008 installment payable in June 2010 and so on).
AAPL has limited track record of operation of only three months in
FY08 during which company reported income of INR2.15 cr and made
cash loss due to high fixed cost and low sales volume. AAPL had
been very highly geared as on March 31, 2008 due to low net worth
base. For the nine month period ended December 2008 in FY09,
Company achieved improvement in sales volume and reported income
of INR5.98 cr with cash profit of INR0.16 crore.
About AIPL (Guarantor of AAPL's bank facilities)
AIPL is the flagship company Amul group of Rajkot, Gujarat,
engaged in various engineering business since 1965. AIPL is
engaged in supplying of auto components, mainly connecting rods,
crankshaft and camshaft, which are among the five building
blocks of an engine. AIPL is a leading supplier of connecting
rods in India and is also the sole supplier to many leading OEMs
including Tata Motors Ltd, Mahindra & Mahindra Ltd, Eicher Motors
Ltd, Ashok Leyland Ltd and Maruti Udyog Ltd. Also, AIPL
has stable and growing revenue from export, which constituted
around 23% of total income in FY09.
Total income of AIPL grew at a CAGR of 37% during four year period
till FY08 mainly due to positive industry scenario. However, for
FY09 (Provisional), AIPL reported total income of INR121.69 crore,
a decline by 15% compared to FY08 due to decline in demand from
OEMs. PBILDT margin and PAT margin also reduced to 9.94% and
1.89% respectively compared to 12.33% and 4.75% respectively in
FY08 due to increase in raw material prices and higher overheads.
Overall gearing (without considering unsecured loan from promoters
as a debt) stood moderately high at 1.89 times as on March 31,
2009.
AMUL CRANKCASE: CARE Rates INR9.19cr Bank Facilities at 'BB+ (SO)'
------------------------------------------------------------------
CARE has assigned 'CARE BB+ (SO)' rating to the Long-term Bank
Facilities of Amul Crankcase Pvt Ltd aggregating INR9.19 crore.
Facilities with this rating are considered to offer inadequate
safety for timely servicing of debt obligations. Such facilities
carry high credit risk.
CARE assigns '+' or '-' signs to be shown after the assigned
rating (wherever necessary) to indicate the relative position of
the firm within the band covered by the rating symbol.
Rating Rationale
Long-term rating is primarily based on the corporate guarantee
extended by Amul Industries Pvt Ltd (AIPL; rated CARE BB+ and PR4)
to the bank facilities of ACCL.
AIPL's ratings are constrained by its relatively weak financial
profile as indicated by moderate profitability, high debt level
and contingent liability in the form of corporate guarantee
extended to its group companies, putting stress on its liquidity
position.
AIPL's ratings also factor in the instances of delays by these
group companies in servicing their debt obligations. The ratings
however take in to account the well established operations of AIPL
in auto components business and its status as a preferred supplier
by leading OEM auto companies.
ACCL's rating is also constrained by the instances of delays in
servicing its debt obligations, its short track record of
operations which is exposed to client concentration risk and its
weak financial profile due to accumulated losses. These
weaknesses were largely offset by the corporate guarantee extended
by AIPL.
Improvement in debt servicing track record and improvement
financial profile of AIPL and its group companies including ACCL
to a self sustaining level are the key rating sensitivities for
ACCL's rating.
ACCL was incorporated in 2006 with an objective to cater the
requirement of Tata Motors Ltd (TML) for its Jamshedpur plant.
The Company started commercial production in Nov. 2006 and has
been involved in the machining of cylinder blocks on job work
basis where raw material is supplied by TML.
Owing to weak industry scenario during FY09, ACCL, along with
other group companies, approached the State Bank of India (SBI) to
reschedule their loan which was granted in February 2009 by which
term loan installments were deferred by 1 year and 9 months
(September 2008 installment payable in June 2010 and so on).
FY08 was the first full year of operation in which company
reported income of INR4.35 cr with PBILDT margin of 26%. However,
higher interest payment and depreciation has resulted in operating
loss of INR0.96 crore. Gearing ratios remained high due to high
term debt on low networth base having accumulated losses. As per
the provisional result for the nine month ended Dec. 2008 in FY09,
operating performance improved and company made marginal cash
profit on total income of INR4.12 cr.
About AIPL (Guarantor of ACCL's bank facilities)
AIPL is the flagship company Amul group of Rajkot, Gujarat,
engaged in various engineering business since 1965. AIPL is
engaged in supplying of auto components, mainly connecting rods,
crankshaft and camshaft, which are among the five building blocks
of an engine. AIPL is a leading supplier of connecting rods in
India and is also the sole supplier to many leading OEMs including
Tata Motors Ltd, Mahindra & Mahindra Ltd, Eicher Motors Ltd, Ashok
Leyland Ltd and Maruti Udyog Ltd. Also, AIPL has stable and
growing revenue from export, which constituted around 23% of total
income in FY09.
Total income of AIPL grew at a CAGR of 37% during four year period
till FY08 mainly due to positive industry scenario. However, for
FY09 (Provisional), AIPL reported total income of INR121.69 crore,
a decline by 15% compared to FY08 due to decline in demand from
OEMs. PBILDT margin and PAT margin also reduced to 9.94% and
1.89% respectively compared to 12.33% and 4.75% respectively in
FY08 due to increase in raw material prices and higher overheads.
Overall gearing (without considering unsecured loan from promoters
as a debt) stood moderately high at 1.89 times as on March 31,
2009.
AMUL CRANKSHAFT: CARE Assigns 'BB+ (SO)' Rating to Bank Facilities
------------------------------------------------------------------
CARE has assigned 'CARE BB+ (SO)' rating to the Long-term Bank
Facilities of Amul Crankshaft Pvt Ltd aggregating INR5.23 crore.
Facilities with this rating are considered to offer inadequate
safety for timely servicing of debt obligations. Such facilities
carry high credit risk.
CARE assigns '+' or '-' signs to be shown after the assigned
rating (wherever necessary) to indicate the relative position of
the firm within the band covered by the rating symbol.
Rating Rationale
Long-term rating is primarily based on the corporate guarantee
extended by Amul Industries Pvt Ltd (AIPL; rated CARE BB+ and PR4)
to the bank facilities of ACPL.
AIPL's ratings are constrained by its relatively weak financial
profile as indicated by moderate profitability, high debt level
and contingent liability in the form of corporate guarantee
extended to its group companies, putting stress on its liquidity
position.
AIPL's ratings also factor in the instances of delays by these
group companies in servicing their debt obligations. The ratings
however take in to account the well established operations of AIPL
in auto components business and its status as a preferred supplier
by leading OEM auto companies.
ACPL's ratings is also constrained by the instances of delays in
servicing its debt obligations, its short track record of
operations which is exposed to client concentration risk and its
weak financial profile due to accumulated losses. These
weaknesses were largely offset by the corporate guarantee extended
by AIPL.
Improvement in debt servicing track record and improvement
financial profile of AIPL and its group companies including ACPL
to a self sustaining level are the key rating sensitivities for
ACPL's rating.
Promoted by Amul group of Rajkot, ACPL was incorporated in 2005
with an objective to cater to the requirement of Tata Motors Ltd
(TML) for its Pune plant and in future as a satellite plant
serving to other OEMs in the region. The Company started
commercial production in 2006 and has been involved in the
machining of crankshaft on job work basis where raw material is
supplied by TML.
Owing to weak industry scenario during FY09, ACPL, along with
other group companies, approached the State Bank of India (SBI) to
reschedule their loan which was granted in February 2009 by which
term loan installments were deferred by 1 year and 9 months
(September 2008 installment payable in June 2010 and so on).
About AIPL (Guarantor of ACPL's bank facilities)
AIPL is the flagship company Amul group of Rajkot, Gujarat,
engaged in various engineering business since 1965. AIPL is
engaged in supplying of auto components, mainly connecting rods,
crankshaft and camshaft, which are among the five building blocks
of an engine. AIPL is a leading supplier of connecting rods in
India and is also the sole supplier to many leading OEMs including
Tata Motors Ltd, Mahindra & Mahindra Ltd, Eicher Motors Ltd, Ashok
Leyland Ltd and Maruti Udyog Ltd. Also, AIPL has stable and
growing revenue from export, which constituted around 23% of total
income in FY09.
Total income of AIPL grew at a CAGR of 37% during four year period
till FY08 mainly due to positive industry scenario. However, for
FY09 (Provisional), AIPL reported total income of INR121.69 crore,
a decline by 15% compared to FY08 due to decline in demand from
OEMs. PBILDT margin and PAT margin also reduced to 9.94% and
1.89% respectively compared to 12.33% and 4.75% respectively in
FY08 due to increase in raw material prices and higher overheads.
Overall gearing (without considering unsecured loan from promoters
as a debt) stood moderately high at 1.89 times as on March 31,
2009.
ANSAL PROPERTIES: Fitch Downgrades National Rating to 'D'
---------------------------------------------------------
Fitch Ratings has downgraded India's Ansal Properties &
Infrastructure Limited's National Long-term rating to 'D' from
'BB-(ind)' to reflect the agency's assessment of the company
undergoing a Coercive Debt Exchange. Simultaneously, the agency
has re-assigned the rating at 'B-(ind)', to reflect API's post-
restructuring credit profile. As a result of these actions, the
Rating Watch Negative on the National Long-term rating has been
resolved. The Outlook is Negative. The other ratings actions on
API are listed at the end of this release.
The downgrade of the National Long-term rating reflects Fitch's
treatment of API's financial restructuring with banks, financial
institutions and mutual funds as "coercive", in line with the
agency's criteria on treatment of such restructurings (for
additional context, please see Fitch's comment titled "India:
Impact of Restructurings on Corporate Ratings" dated 29 May 2009).
Fitch notes that the restructuring has not resulted in significant
impairment of the contractual terms for the creditors, with the
revised terms envisaging an extension in maturity profile and
keeping the other loan terms unchanged. However, in Fitch's view,
the restructuring was essential for API to avoid a liquidity
crunch and would have otherwise resulted in a default on its debt
obligations. Fitch has, therefore, treated the restructuring as
an effective default.
Fitch has simultaneously re-assigned the National Long-term rating
at 'B-(ind)', with API's short term issuance ratings re-assigned
'F4(ind)' ratings to reflect the successful execution of
restructuring. However liquidity risk continues as API, post-
restructuring, has substantial repayments in Q310-Q410 and in
FY11. The company's cash flow, and consequent deleveraging of the
balance sheet, could potentially be aided by the proposed equity
issuance; however, this has not been factored into the rating.
The Negative Outlook reflects that the operating environment in
the Indian real estate sector, though slightly improved, still
remains subdued making asset monetization and project sales slow
to achieve. Fitch notes that these are crucial in facilitating
debt repayments in line with the restructured schedule. Any
shortfall in cash flows from asset monetization or project sales
could affect the extent of de-leveraging and exert renewed
pressure on liquidity, thereby acting as a negative driver for the
rating. In any event, further restructuring of its debt
obligations that Fitch deems to be "coercive" in line with its
criteria, could again see the rating migrate to default.
The Outlook may be revised to Stable if there is a significant
deleveraging of the balance sheet through monetization of its
assets or through raising of additional equity, and/or an
improvement in the operating environment.
The agency has also downgraded and then re-assigned the ratings of
its debt instruments:
* INR1000 million long-term debt program: downgraded to 'D' from
'BB-(ind)' and re-assigned at 'B-(ind)';
* INR710 million long-term bank loans: downgraded to 'D' from
'BB-(ind)' and re-assigned at 'B-(ind)';
* INR1721.5 million of fund-based working capital limits
consisting of cash credit and overdraft: downgraded to 'D' from
'BB-(ind)' and re-assigned at 'B-(ind)';
* INR200 million short-term bank loans: downgraded to 'F5(ind)'
from 'F4(ind)' and re-assigned at 'F4(ind)';
* INR1,500 million non-fund based working capital limits:
downgraded to 'F5(ind)' from 'F4(ind)' and re-assigned at
'F4(ind)'; and
* INR1000 million short-term debt rating of which INR500m is to
be carved out of fund-based working capital limits: downgraded
to 'F5(ind)' from 'F4(ind)' and re-assigned at 'F4(ind)'.
The RWN has been removed from all ratings.
API, founded in 1967, is a real estate development company based
in Delhi. In FY09, on a consolidated basis it had revenue of
INR6.8 billion with EBIDTA of INR0.9bn and net income of
INR0.3 billion. The net adjusted debt/EBIDTA in FY09 was 15.8x,
with total debt/equity of 1.2x. In the three months ended
June 2009, API had revenue of INR1.4 billion and net income of
INR0.1 billion.
ADICO FORGE: CARE Places 'BB+ (SO)' Rating on LT Bank Facilities
----------------------------------------------------------------
CARE has assigned a 'CARE BB+ (SO)' rating to the Long-term Bank
Facilities of Adico Forge Pvt Ltd aggregating INR10.18 crore.
Facilities with this rating are considered to offer inadequate
safety for timely servicing of debt obligations. Such facilities
carry high credit risk.
Further, CARE has assigned a 'PR4 (SO)' rating to the Shortterm
Bank Facilities of AFPL aggregating INR3.75 crore. This rating is
applicable for facilities having tenure up to one year.
Facilities with this rating would have inadequate capacity for
timely payment of short-term debt obligations and carry very high
credit risk. Such facilities are susceptible to default.
CARE assigns '+' or '-' signs to be shown after the assigned
rating (wherever necessary) to indicate the relative position of
the firm within the band covered by the rating symbol.
Rating Rationale
Both long-term and short-term ratings are primarily based on the
corporate guarantee extended by Amul Industries Pvt Ltd (AIPL;
rated CARE BB+ and PR4) to the bank facilities of AFPL.
AIPL's ratings are constrained by its relatively weak financial
profile as indicated by moderate profitability, high debt level
and contingent liability in the form of corporate guarantee
extended to its group companies, putting stress on its liquidity
position.
AIPL's ratings also factor in the instances of delays by these
group companies in servicing their debt obligations. The ratings
however take in to account the well established operations of AIPL
in auto components business and its status as a preferred supplier
by leading OEM auto companies.
AFPL's ratings are also constrained by the instances of delays in
servicing its debt obligations, its short track record of
operations and weak financial profile along with the stressed
liquidity position which were largely offset by the corporate
guarantee extended by AIPL. The ratings also take in to
consideration the operational synergy of AFPL with AIPL.
Improvement in debt servicing track record and improvement
financial profile of AIPL and its group companies including AFPL
to a self sustaining level are the key rating sensitivities for
AFPL's rating.
AFPL was established in 2004 as a measure of backward integration
for operations of AIPL, the flagship Company of Amul group, having
manufacturing facility at Pune. AFPL manufactures forged
connected rods (semi-finished products) and supplies to
AIPL who in turn supplies machined connecting rods (finished
product) to automobile companies/ engine manufacturers.
AFPL has three presses with capacity of 1000 ton, 1600 ton and
2500 ton which can produce forged components that weigh from
0.6 kg to 5 kg. Capacity utilization has remained in the range
of 70-76% during last three years ended March 2009.
Owing to weak industry scenario during FY09, AFPL, along with
other group companies, approached their bankers to reschedule
their loan. The bankers, in February 2009, agreed to defer the
term loan installments by 1 year and 9 months (September 2008
installment payable in June 2010 and so on).
Total income of AFPL grew to INR 22.10 crore for FY08 from a low
level of INR5.45 crore in FY06. Increase in scale of operation
resulted into improvement in PBILDT margin from 7.98% in FY06 to
13.57% in FY08. The Company remained highly geared with Long term
debt equity ratio and overall gearing ratio respectively at 4.03
times and 4.90 times as on March 31, 2008. As per provisional
result for 9MFY09, the Company reported total income of INR18
crore with PBILDT margin of 8.97 %. PBILDT margin declined during
9MFY09 due to steep increase in raw material prices coupled with
slow down in demand off-take.
About AIPL (Guarantor of AFPL's bank facilities)
AIPL is the flagship company Amul group of Rajkot, Gujarat,
engaged in various engineering business since 1965. AIPL is
engaged in supplying of auto components, mainly connecting rods,
crankshaft and camshaft, which are among the five building blocks
of an engine. AIPL is a leading supplier of connecting rods in
India and is also the sole supplier to many leading OEMs including
Tata Motors Ltd, Mahindra & Mahindra Ltd, Eicher Motors Ltd, Ashok
Leyland Ltd and Maruti Udyog Ltd. Also, AIPL has stable and
growing revenue from export, which constituted around 23% of total
income in FY09.
Total income of AIPL grew at a CAGR of 37% during four year period
till FY08 mainly due to positive industry scenario. However, for
FY09 (Provisional), AIPL reported total income of INR121.69 crore,
a decline by 15% compared to FY08 due to decline in demand from
OEMs. PBILDT margin and PAT margin also reduced to 9.94% and
1.89% respectively compared to 12.33% and 4.75% respectively in
FY08 due to increase in raw material prices and higher overheads.
Overall gearing (without considering unsecured loan from promoters
as a debt) stood moderately high at 1.89 times as on March 31,
2009.
PARSVNATH DEVELOPERS: Fitch Cuts National Long-Term Rating to 'D'
-----------------------------------------------------------------
Fitch Ratings has downgraded India's Parsvnath Developers
Limited's National Long-term rating to 'D' from 'BB-(ind)' to
reflect the agency's assessment of company undergoing a Coercive
Debt Exchange Simultaneously, the agency has re-assigned PDL a 'B-
(ind)' National Long-term rating to reflect its post-restructuring
credit profile. As a result of these actions, the Rating Watch
Negative on the National Long-term rating has been resolved. The
Outlook is Negative.
The downgrade of the National Long-term rating reflects Fitch's
treatment of PDL's financial restructuring with banks, financial
institutions and mutual funds as "coercive", in line with the
agency's criteria on treatment of such restructurings (for
additional context, please see Fitch's comment titled "India:
Impact of Restructurings on Corporate Ratings" dated 29 May 2009).
Fitch notes that the restructuring has not resulted in significant
impairment of the contractual terms for the creditors, with the
revised terms envisaging an extension in maturity profile keeping
the other loan terms unchanged. However, in Fitch's view, the
restructuring was essential for PDL to avoid a liquidity crunch
and would have otherwise resulted in a default on its debt
obligations. Fitch has, therefore, treated the restructuring as
an effective default.
Fitch has simultaneously re-assigned the National Long-term rating
at 'B-(ind)', with the short term issuance ratings re-assigned
'F4(ind)' ratings, reflecting the successful execution of
restructuring. PDL's financial profile has also been aided by its
recent asset monetization, equity raising (through a qualified
institutional placement - QIP, aggregating INR1680m) and project
level stake sale. However liquidity risk continues as PDL, post-
restructuring, has substantial repayments in Q310-Q410 and in
FY11.
The Negative Outlook reflects that the operating environment in
the Indian real estate sector, though slightly improved, remains
subdued making asset monetisation and project sales slow to
achieve. Fitch notes that these are crucial in facilitating debt
repayments in line with the restructured schedule. Any shortfall
in cash flows from asset monetisation or project sales could
constrain the extent of de-leveraging and exert renewed pressure
on liquidity, thereby acting as a negative driver for the rating.
In any event, further restructuring of its debt obligations that
Fitch deems to be "coercive" in line with its criteria, could
again see the rating migrate to default.
The Outlook may be revised to Stable if there is significant
deleveraging of the balance sheet through monetization of its
assets or through raising of additional equity, and/or an
improvement in the operating environment could result in.
The agency has also downgraded and then re-assigned the ratings of
its debt instruments:
-- INR2 billion long-term debt and INR9bn loan term bank loan:
downgraded to 'D' from 'BB-(ind)' and re-assigned at 'B-
(ind)';
-- INR2 billion short-term debt: downgraded to 'F5(ind)' from
'F4(ind)'
and re-assigned at 'F4(ind)';
The RWN has been removed from all ratings.
PDL is among the larger real estate developers in India. Having
started as a real estate marketing company in 1990, it has
operated as a builder-developer since 1994. The company made
INR2.1bn in operating EBITDAR on revenue of INR7bn in FYE09. The
corresponding figures for Q110 were INR431m and INR1137m,
respectively.
BEST INDIA: ICRA Assigns 'LBB' Rating on INR10MM Bank Facilities
----------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR10 million fund-based
sub-limit of Best India Tobacco Suppliers Private Limited. ICRA
has also assigned an A4 rating to INR175 million fund based bank
limits and INR10 million non-fund based bank limits of BITL.
The ratings are constrained by the Company's small scale of
operations restricting economies of scale and financial
flexibility. The ratings are also tempered by the weak financial
profile of BITL characterized by stressed net margins, low
accruals and high working capital intensity. The Company faces
high business risk from heavy customer and geographic
concentration of sales. Operating margins of BITL are exposed to
volatility in raw tobacco prices and exchange rate fluctuations.
The ratings however take note of the significant experience of
promoters of over five decades in the tobacco industry. The
ratings also take into consideration the favorable market
environment for Indian tobacco exports due to anticipated decline
in tobacco production in countries like Zimbabwe, China and
competitive production and conversion costs of Indian tobacco
vis-a-vis tobacco from other nations.
About Best India
Best India Tobacco Suppliers Private Limited was incorporated in
the year 1981-82 in Guntur, Andhra Pradesh. The Company is
primarily engaged in exporting processed tobacco. Promoters and
their relatives hold 100% stake in the Company. BITL procures raw
tobacco, processes it and exports it to various countries like
Tunisia, Algeria and Morocco. The Company is currently dealing
primarily with Flue Cured Virginia (FCV), Burley and Rustica
varieties of tobacco.
The Company reported a net profit after tax of INR13.7 million on
operating income of INR129.9 million for the year ending March 31,
2009, against profit after tax of INR 0.6 million on operating
income of INR117.1 million for the year ended March 31, 2008.
MAGPPIE INTERNATIONAL: Stressed Liquidity Cues ICRA 'LBB' Ratings
-----------------------------------------------------------------
ICRA has assigned 'LBB' rating to the INR150 million fund based
limits and INR140 million term loan of Magppie International
Limited. ICRA has also assigned A4 rating to the INR170 million
non-fund based limits MIL.
The ratings take into account significant experience of the
promoters in stainless steel industry, MIL's established brand
name in the stainless steel kitchenware products and its strong
presence in the export market. The ratings are however
constrained by competitive nature of stainless steel kitchenware
industry; susceptibility of MIL's profitability to adverse
movements in raw material prices and exchange rates and adverse
financial profile of the company as reflected by its low
profitability (company reported losses of around INR40 million in
FY2009) and its relatively high gearing level of 3.58 times as on
March 31, 2009. Further, the ratings also take into account
stressed liquidity position of the company as reflected by recent
debt restructuring undertaken by MIL.
VISHAL RETAIL: CARE Cuts Ratings on Long-Term Bank Debts to 'C'
---------------------------------------------------------------
CARE has revised the rating assigned to the Long-term Bank
Facilities aggregating INR292.04 cr of Vishal Retail Limited from
'CARE BB' to 'CARE C'. This rating is applicable for facilities
having tenure of over one year. Facilities with this rating are
considered to be having very high likelihood of default in
the payment of interest and principal.
Rating Rationale
The rating revision takes into consideration the acute liquidity
constraints faced by the company consequent upon steep
deterioration in operational and financial performance and the
resultant restructuring of the company's debt. Going forward, the
impact of debt restructuring exercise on the overall credit
profile of the company would be the key rating sensitivity.
About Vishal Retail
Vishal Retail Ltd incorporated in the year 2001, is engaged in the
retailing of apparels, household merchandise and consumer good
items. The company is promoted by Mr. Ram Chandra Agarwal, the
Chairman and Managing Director (CMD), having over two decades of
experience in the retail sector. The Company started off as a
retailer of readymade apparels in 2001 and subsequently
diversified its product offering to include a variety of household
and consumer durable items in its portfolio. The company
consistently scaled up the retail area over the years and had 170
stores covering a retail space of 3 mn sq. ft. as on July 24,
2009.
VRL reported a total income of INR1,332cr and incurred a net loss
of INR94cr in FY09, the loss primarily on account of the stock
revaluation exercise taken up by the Company for its slow-moving
and obsolete stock. Due to adverse market conditions, the company
registered a dip in income in Q1FY10 as well and posted net losses
of INR90cr. Due to the deterioration in financial performance
characterized by cash losses, VRL has approached its lenders to
reschedule its entire debt portfolio.
=================
I N D O N E S I A
=================
BANK CENTURY: Changes Name to Bank Mutiara
------------------------------------------
PT Bank Century Tbk has officially changed its name to Bank
Mutiara, as part of efforts to rebuild its image, according to The
Jakarta Post.
According to the report, Bank Century President Director Maryono
said Mutiara, or pearl, was chosen as the new name for the bank
because it reflected "valuable lessons to produce pearls". The
name change cost the bank IDR1.8 billion (US$180,000), Mr. Maryono
added.
As reported in Troubled Company Reporter-Asia Pacific on Sept. 17,
2009, The Jakarta Post said that the BPK aims to conclude its
final report in the audit of Bank Century's bailout that has
swollen to IDR6.76 trillion (US$676 million) before Oct. 19.
BPK Chairman Anwar Nasution said he would focus on examining Bank
Century since its establishment in 2004 from the merger of three
banks -- Bank Danpac, Bank Pikko and Bank CIC -- until the bank
received an injection of IDR6.76 trillion from the Deposit
Insurance Corporation (LPS).
The BPK would scrutinize Bank Century's balance of payments, which
turned negative in November last year and caused the government to
intervene via the LPS.
Bank Century is a relatively small lender with total assets of
IDR15 trillion (US$1.3 billion). The Post said the government
decided to take over Bank Century -- the first such move since the
1997-1998 crisis -- to save it from collapse and restore
confidence in the banking sector.
About Bank Century
Headquartered in Jakarta, Indonesia, PT Bank Century Tbk --
http://www.centurybank.co.id/-- is a financial institution. The
Bank's products and services include deposits, savings, loans,
mutual funds, bank notes, export and import financing, credit and
commercial banking. The Bank is supported by 27 branch offices,
30 supporting offices and eight cash offices nationwide.
BANK NEGARA: Shareholders OK Plan to Create Islamic Banking Unit
---------------------------------------------------------------
The Jakarta Post reports that the shareholders of PT Bank Negara
Indonesia has approved a plan to separate the bank's sharia
banking division.
The Post relates BNI president director Gatot Suwondo said the
separated unit, to be called BNI Syariah, will be equipped with a
paid-up capital of IDR1 trillion (around US$104 million).
According to the report, BNI will control a 99.9% stake in the
company, contributing 99.9% of the investment needed — around
IDR999 billion. The report says that the remaining 0.1% will be
covered by the bank's insurance unit, PT BNI Life Insurance.
The bank, the report notes, is now in the process of waiting for
permission from the central bank to transfer assets and employees
to the new company. It is expected that BNI Syariah will be
officially independent by early next year, the Post notes.
As reported in the Troubled Company Reporter-Asia Pacific on
September 17, 2009, Bloomberg News said Bank Negara will separate
its Islamic-banking unit and seek investors to boost the new
entity's capital.
Bloomberg disclosed that Indonesia, with the world's largest
Muslim population, aims to broaden its Islamic banking industry to
attract more investment from the Middle East and overtake Malaysia
as the Asia-Pacific region's Islamic finance hub. According to
Bloomberg, Shariah law bans the payment and receipt of interest,
prohibits investment in businesses such as gambling and alcohol,
and stresses profit-sharing.
About Bank Negara
Headquartered in Jakarta, Indonesia, PT Bank Negara Indonesia
(Persero) Tbk -- http://www.bni.co.id/-- is a financial
institution with products and services that include: Individual,
Business, Syariah, Micro Banking, and Online Feature. The Bank
has approximately 700 correspondent banks, 914 local branches
and five oversea branches located in New York, London, Tokyo,
Hong Kong and Singapore. The bank has five subsidiaries: PT BNI
Multi Finance, a financial services company; PT BNI Securities,
securities company; PT BNI Life Insurance, an insurance
provider; PT BNI Nomura Jafco Manajemen Ventura, a venture
capital company, and PT BNJI Ventura Satu, a venture capital
company.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
Dec. 11, 2008, Fitch Ratings affirmed PT Bank Negara Indonesia
Tbk's Long- term foreign and local currency Issuer Default Ratings
at 'BB' with a Stable Outlook, Short-term foreign currency IDR at
'B', National Long-term Rating at 'AA-(idn)' (AA minus(idn)) with
a Stable Outlook, Individual rating at 'D', Support rating at '3',
and Support rating floor at 'BB-' (BB minus).
PT BERLIAN: Fitch Puts 'B' Issuer Default Rating on Negative Watch
------------------------------------------------------------------
Fitch Ratings has placed Indonesia-based PT Berlian Laju Tanker
Tbk's Long-term foreign and local currency Issuer Default Ratings
of 'B' on Rating Watch Negative, following the company's
announcement on October 5, 2009, that it plans to acquire Camillo
Eitzen & Co ASA, an Oslo-based financially distressed shipping
company. Fitch has also placed the 'CCC' rating of the
US$400 million senior unsecured notes due 2014 issued by BLT
Finance B.V. and guaranteed by BLT on RWN. CECO is a large ship
operator involved in chemical, gas and bulk shipping. If the
transaction goes through, the combined entity will become the
world's largest chemical tanker operator.
The RWN reflects Fitch's concerns that the proposed acquisition
may further weaken BLT's already weak financial profile. CECO is
already in the process of restructuring its debt (US$1.4 billion
at June 2009) following a decline in asset values and lower cash
generation due to weak conditions in the shipping markets. CECO's
unadjusted leverage net of cash at H109 was 9.3x compared to BLT's
adjusted leverage net of cash of 6.7x. CECO's profitability is
much weaker compared to BLT. In the six months ended 30 June
2009, CECO reported revenues and EBITDA of US$539 million and
US$74.6 million respectively, compared to BLT's US$305 million in
revenue and US$127 million in EBITDA. Fitch also believes that
the proposed acquisition demonstrates BLT management's high risk
appetite.
However, Fitch notes that BLT plans to structure the transaction
in a manner that will lower risks to the company. The plan
includes an all-share offer for the shareholders of CECO (via
mandatorily exchangeable bonds), raising an additional
US$200 million in equity at BLT, and further re-structuring of
CECO's debt. Nonetheless, financial performance of CECO can
deteriorate further given the weak shipping markets and the
company may require further support from its shareholders.
The transaction is subject to shareholder approval, BLT's ability
to raise US$200 million via mandatorily exchangeable bonds, a due
diligence on CECO by BLT, and agreements with CECO's lenders on
the terms of restructuring CECO's debt to the satisfaction of BLT.
If BLT acquires CECO, Fitch will evaluate the final structure of
the transaction for additional risks stemming from the
acquisition, such as the debt burden assumed, potential financial
support that may have to be provided to CECO and compliance with
loan covenants. Given the non-cash nature of the offer and BLT's
plan to raise additional equity, the proposed structure is
immediately positive for its liquidity. However, even if CECO's
debt is ring-fenced, Fitch's evaluation may take into account the
debt of all CECO-group companies in order to capture integration
risks and potential for future cash calls on shareholders of CECO.
If the deal is aborted, BLT's ratings will likely be affirmed with
a Negative Outlook. BLT has improved its liquidity position via
asset sales, and the issuance of new debt and equity to date in
2009. As at June 2009, the company had cash reserves of
US$317 million (without the new equity proceeds of around
US$60 million). The potential Negative Outlook reflects BLT's
high debt maturities in 2010, its heavy committed capex pipeline
through 2012, and the continued weak conditions expected in
shipping markets until 2011.
=========
J A P A N
=========
GIANNI VERSACE: To Close Japan Stores; Review Business Strategy
---------------------------------------------------------------
Gianni Versace S.p.A. will close its Japanese stores and review
its entire business strategy as newly appointed Chief Executive
Officer Gian Giacomo Ferraris makes his mark on the business,
Chris Staiti at Bloomberg News reports.
"The Versace boutiques in Japan no longer represented the brand
image and it was felt to be more advantageous for the company to
close them and start with a clean slate," Bloomberg quoted
Federico Steiner, an outside spokesman for Versace in Milan, as
saying in a statement. Mr. Steiner told Bloomberg that the stores
are now in the process of being closed.
According to Bloomberg, Mr. Steiner wouldn’t comment on a report
by Nikkei English News that Versace will liquidate the Japanese
unit by the end of the year, other than to say the company is
"exploring its options."
Gianni Versace S.p.A. -- http://www.versace.com/-- is an Italian-
based international fashion house. The company produces
accessories, fragrances, makeup and home furnishings as well as
clothes.
JAPAN AIRLINES: To Shelve Tie-Up Talks with Delta, AMR
------------------------------------------------------
Japan Airlines Corp. plans to put on hold alliance talks held
separately with Delta Air Lines and AMR Corp's American Airlines,
Reuters reports citing Kyodo news agency.
According to Reuters, the news agency said JAL has decided to
focus first on putting together a restructuring plan with the
government task force that is overseeing the airline's revival
after the government backed a JPY100 billion (US$1.11 billion)
loan.
The Japan Times relates that JAL changed course after transport
minister Seiji Maehara recently launched a new task force
comprised of corporate turnaround experts who will evaluate the
assets of the airline and review the rehabilitation plan it
submitted last month.
The Times, citing unnamed sources, says the company hopes to
resume negotiations with Delta and American after it draws up a
road map for turning around its operations.
Under the guidance of the new task force, which replaced an expert
panel set up by the previous administration, says the Times, JAL
will hammer out an outline of its new business improvement plan by
around late October and finalize it around the end of November.
As reported by the TCR on Sept. 15, 2009, AMR Corp. and Delta Air
are reportedly in separate talks with Japan Airlines to forge an
expansive joint venture with the carrier. The Wall Street Journal
said that American Airlines would also consider taking a minority
stake in JAL, although any such investment would likely be capped
at hundreds of millions of dollars. Delta is also negotiating to
acquire a minority stake of around $300 million in JAL. The
Journal relates that Delta wants JAL to join its rival SkyTeam
alliance.
About Japan Airlines
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-
based holding company that is active in five business segments
through its 225 subsidiaries and 82 associated companies. The Air
Transportation segment is engaged in the operation of passenger
and cargo planes. The Air Transportation-Related segment is
engaged in the transportation of passengers and cargoes, the
preparation of in-flight food catering, the maintenance of
aircraft and land equipment, as well as the fueling business. The
Travel Planning and Marketing segment is involved in the planning
and sale of travel packages. The Card and Leasing segment is
engaged in the provision of finance, cards and leasing services.
The Others segment is involved in businesses related to hotels,
resorts, logistics, wholesale, retail, real estate, printing,
construction, manpower dispatch, as well as information and
communication. The Company has numerous global operating
locations.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
February 11, 2009, Moody's Investors Service changed the outlook
on the Ba3 long-term debt rating and issuer rating of Japan
Airlines International Co. Ltd. to negative from positive. The
outlook change reflects Moody's view that JALI's profitability is
likely to remain pressured amid the recent sharp decline in
airline passenger demand.
Japan Airlines continues to carry Standard & Poor's Ratings 'B+'
LT Foreign & Local Issuer Credit. The outlook is positive.
L-JAC 3: Fitch Downgrades Ratings on Eight Classes of Notes
-----------------------------------------------------------
Fitch Ratings has downgraded eight classes of L-JAC 3 Trust's
trust beneficiary interests due April 2013 and removed all from
Rating Watch Negative, following the implementation of the
recently published criteria for Japanese CMBS surveillance. Full
details of the rating actions are given below:
-- JPY19.93 billion* Class A TBIs affirmed at 'AAA'; off RWN;
Outlook Stable;
-- JPY4.0 billion* Class B TBIs downgraded to 'A' from 'AA';
off RWN; Outlook Stable;
-- JPY4.0 billion* Class C TBIs downgraded to 'BBB' from 'A';
off RWN; Outlook Negative;
-- JPY4.0 billion* Class D-1 TBIs downgraded to 'BB-' from
'BBB'; off RWN; Outlook Negative;
-- JPY1.4 billion* Class E-1 TBIs downgraded to 'B' from 'BBB-';
off
RWN; Outlook Negative;
-- JPY1.4 billion* Class F-1 TBIs downgraded to 'CCC' from
'BB+'; off RWN; assigned a Recovery Rating of 'RR4';
-- JPY1.5 billion* Class G-1 TBIs downgraded to 'CCC' from 'BB';
off RWN; assigned a Recovery Rating of 'RR6';
-- JPY1.0 billion* Class H-1 TBIs downgraded to 'CCC' from
'BB-'; off RWN; assigned a Recovery Rating of 'RR6';
-- JPY0.583 billion* Class I TBIs downgraded to 'CCC' from 'B+';
off RWN; assigned a Recovery Rating of 'RR6';
-- Interest (dividend) -only Class X-2 TBIs affirmed at 'AAA';
Outlook Stable.
* as of October 2, 2009
Fitch downgraded all rated classes except classes A and X-2,
reflecting the agency's view over the potential recovery amounts
from the underlying loans. The agency affirmed the ratings on the
Class A TBIs given the low loan to value ratio.
Fitch revised the cap rates of the underlying properties, taking
into consideration the remaining period to maturity of each of the
loans and the current stressed commercial real estate market in
Japan. As a result, Fitch has adopted values for the underlying
properties that are 31.7% lower than the initial value on average,
for the purpose of this review. The actual cash flows of the
underlying collateral properties are generally in line with
Fitch's initial expectations.
Fitch has resolved the RWN status on all classes, since the
likelihood of additional rating action has reduced given the
relatively stable operational status of the underlying properties,
and the conservative property revaluations.
The agency has assigned Negative Outlooks to classes C, D-1, and
E-1 TBIs, reflecting the risk that the value of one underlying
property may decline further under severe market conditions as the
loan maturity approaches.
Fitch assigned ratings to this transaction in October 2006. At
closing, the TBIs were secured by seven loans collateralized by 17
properties. Currently, the TBIs are ultimately secured by three
loans collateralized by three properties. Six classes of TBIs
have been already paid in full.
The ratings on the dividend-only Class X-2 TBIs only address the
likelihood of receiving dividend payments, while principal on the
related underlying assets remain outstanding.
Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to June
2008. Unlike a Rating Watch which notifies investors that there
is a reasonable probability of a rating change in the short term
as a result of a specific event, rating Outlooks indicate the
likely direction of any rating change over a one- to two-year
period.
L-JAC FIVE: S&P Puts Ratings on Notes on CreditWatch Negative
-------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on the class
A and B trust certificates issued under the L-JAC Five Trust
Beneficial Interest transaction on CreditWatch with negative
implications. At the same time, Standard & Poor's kept its
ratings on classes C to D-2 and classes E-1 to J-1 on CreditWatch
with negative implications, where they had been placed on July 6,
2009. In addition, S&P also affirmed the ratings on classes D-3
and X.
Standard & Poor's reviewed the repayment prospects of about 100
loans (total outstanding loan balance: about JPY660 billion)
backing rated CMBS transactions that are due to mature by the end
of August 2010. Following the review, on July 6, 2009, S&P placed
the ratings on 93 tranches of 23 CMBS transactions, including
those on classes C to D-2 and classes E-1 to J-1 of L-JAC Five, on
CreditWatch with negative implications.
Three of the transaction's underlying nonrecourse loans
(representing a combined 10.2% or so of the total initial issuance
amount of the trust certificates) are due to mature by the end of
August 2010 and are "loans considered to be in default," as stated
in the aforementioned report. In addition, another two underlying
loans (representing a combined 28.2% or so of the total initial
issuance amount of the trust certificates) had defaulted, and
collection procedures are underway, in accordance with the
transaction agreement.
Standard & Poor's placed its ratings on classes A and B on
CreditWatch negative and maintained its ratings on classes C to D-
2 and classes E-1 to J-1 on CreditWatch negative because: (1) the
three "loans considered to be in default" are backed by regional
retail properties, and there is a possibility that S&P may need to
lower its assumptions, with regard to the recovery prospects of
the collateral properties, made during the aforementioned
CreditWatch placements (on July 6, 2009) to reflect information
obtained through a meeting with the loan asset manager; and (2)
with regard to one of the two loans that had already defaulted,
S&P need to lower its assumption with respect to the recovery
amount from the collateral property to reflect various
information, including those in the servicer's collection plan.
Moreover, there appears to be uncertainty over the recovery
prospects of the other defaulted loan.
Standard & Poor's intends to review its ratings on the trust
certificates after considering: (1) the performance of the
collateral properties backing the three "loans considered to be in
default" and their recovery prospects, based on the possibility
that the loans may indeed not be repaid and the properties may
need to be liquidated; and (2) the recovery prospects considering
information that S&P received during the collection process
relating to the two defaulted loans.
At this point, S&P has affirmed the ratings on classes D3 and X.
However, S&P is considering amending the rating methodology for
interest-only certificates, which include class X of this
transaction. If the proposal is adopted, it could affect the
rating on class X. L-JAC Five is a multi-borrower CMBS
transaction. The trust certificates were originally backed by
loans extended to 13 obligors. The loans were originally backed
by 81 real estate properties and real estate beneficial interests.
The transaction was arranged by Lehman Brothers Japan Inc. Premier
Asset Management Co. is the transaction servicer.
Ratings Placed On Creditwatch Negative
L-JAC Five Trust Beneficial Interest
Floating-rate trust certificates due August 2015
Class To From Initial issue amount Coupon type
----- -- ---- -------------------- -----------
A AAA/Watch Neg AAA JPY41.5 bil. Floating Rate
B AA/Watch Neg AA JPY7.2 bil. Floating Rate
Ratings Kept On Creditwatch Negative
L-JAC Five Trust Beneficial Interest
Class Rating Initial issue amount Coupon type
----- ------ -------------------- -----------
C A/Watch Neg JPY6.1 bil. Floating Rate
D-1 BBB/Watch Neg JPY1.7 bil. Floating Rate
D-2 BB+/Watch Neg JPY1.75 bil. Floating Rate
E-1 BBB-/Watch Neg JPY0.5 bil. Floating Rate
E-2 BB-/Watch Neg JPY0.8 bil. Floating Rate
F-1 BB+/Watch Neg JPY0.5 bil. Floating Rate
F-2 B+/Watch Neg JPY0.58 bil. Floating Rate
G-1 BB/Watch Neg JPY0.5 bil. Floating Rate
G-2 B-/Watch Neg JPY0.4 bil. Floating Rate
H-1 BB-/Watch Neg JPY0.53 bil. Floating Rate
I-1 B+/Watch Neg JPY0.56 bil. Floating Rate
J-1 B/Watch Neg JPY0.37 bil. Floating Rate
Ratings Affirmed
L-JAC Five Trust Beneficial Interest
Class Rating Initial issue amount Coupon type
----- ------ -------------------- -----------
D-3 BBB JPY0.64 bil. Floating Rate
X* AAA JPY63.63 bil. (Initial notional principal)
* Interest-only
MAZDA MOTOR: Plans to Raise US$1.1 Billion; Cuts Loss Forecast
--------------------------------------------------------------
Mazda Motor Corp. plans to raise JPY96 billion (US$1.1 billion) in
a share sale to fund development of hybrid vehicles, The Financial
Times reports.
According to the report, Mazda said it would offer 363 million new
shares to investors, equivalent to one-quarter of its outstanding
stock, and sell an additional 97 million existing shares that it
bought about a year ago from Ford Motor, its long-time US partner.
Of the new shares, the FT says, 315 million are to be sold through
a public offering and 48 million shares may be issued to Nomura
Securities, one of the deal's underwriters, depending on demand.
The FT notes Mazda said it planned to spend JPY60 billion of the
new cash on technological innovation. According to the FT, Mazda
also plans to raise the average fuel-efficiency of its fleet by
30% by 2015 compared with 2008, by introducing next-generation
drives and improving the performance of its petrol-burning
internal-combustion engines.
Earnings Forecast Revision
Mazda Motor on Monday disclosed upwardly revised projections for
the full fiscal year through March 2010.
The FY2009 first half initial projections were for sales revenue
of JPY930 billion, an operating loss of JPY60 billion, and a
JPY50 billion net loss. With the revised outlook, Mazda now
forecasts sales revenue to be JPY1 trillion, a JPY70 billion
increase. Operating loss is now projected to be JPY23 billion,
a JPY37 billion improvement, and net loss to be JPY26 billion, a
JPY24 billion improvement. These revised figures mainly reflect
increased sales volumes since the initial forecasts. The revisions
also reflect the depreciation of the yen against major currencies
including the Euro.
Global sales are now expected to be 572,000 units in the first
half, an increase of 29,000 units over the initial figure. This
is due to expanded demand resulting from government economic
stimulus measures in Japan, the United States, Europe, and other
nations, and from the strong sales of the new Mazda3 (known as the
Mazda Axela in Japan).
Mazda's return to profitability in operating profit/loss,
initially forecasted to be in the second half of the fiscal year,
is now projected to be achieved ahead of schedule and occur in the
second quarter. This is attributable to contributions from
further cost reduction actions in addition to the abovementioned
factors.
Projections for Full Year FY2009
Mazda is also revising its full-year outlook for FY2009. Global
sales are now projected to be 1,155,000 units, an increase of
55,000 units over the initial full-year estimate of 1.1 million
units. Although the end of scrappage incentives in Europe are
expected to adversely impact on the market in the second half,
Mazda now expects to narrow the decline in global sales to 8
percent year-on-year on the full contribution of the new Mazda3's
global launch.
Based on the upward revisions to the first half and projections
for the second half, the full-year outlook is for improved
performance in each area, with revenue projected to be JPY2.13
trillion, an operating loss of JPY13 billion, and a net loss of
JPY26 billion. Operating loss would be an estimated JPY37 billion
improvement compared to the initial operating loss forecast of
JPY50 billion.
About Mazda Motor
Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor
Corporation -- http://www.mazda.co.jp/-- together with its
subsidiaries and associates, is primarily involved in the
manufacture and distribution of automobiles. The company
manufactures passenger cars and commercial vehicles. Mazda
Motor distributes its products in both domestic and overseas
markets. The company has 58 subsidiaries. It has overseas
operations in the United States, Canada, Mexico, Germany,
Belgium, France, the United Kingdom, Switzerland, Portugal,
Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand,
Indonesia and China. The company has a global network.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
March 23, 2009, Standard & Poor's Ratings Services revised to
negative from stable the outlook on its 'BB' long-term corporate
credit rating on Mazda Motor Corp., reflecting increased pressure
on the company's profitability and cash flow amid ongoing
turbulence in global auto markets. At the same time, Standard &
Poor's affirmed its long-term corporate credit and 'BB+' senior
unsecured debt ratings on Mazda.
WMT GLOBAL: S&P Downgrades Ratings on Various Classes of Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class A to E fixed-rate notes issued under the WMT Global Funding
I Inc. transaction. At the same time, Standard & Poor's kept the
ratings on the class A to C notes on CreditWatch with negative
implications, and removed the ratings on classes D and E from
CreditWatch negative. The ratings on classes A to E had been
placed on CreditWatch negative on April 9, 2009.
S&P downgraded classes A and B and kept the ratings on classes A
to C on CreditWatch with negative implications because S&P hold
the view that uncertainty is mounting over the recovery prospects
of the transaction's underlying loan that defaulted in October
2008. Specifically, a number of factors, including procedures
described in the notes' agreement and the type of properties
(extended-stay limited-service apartments), are causing delays in
the sale of the related collateral properties. Standard & Poor's
believes that delays may hamper recovery by the transaction's
legal final maturity date in November 2010, given the limited
remaining period of time (one year and one month).
The rating actions on the class A and B notes are based on what
S&P view as uncertainty over principal and interest payments on
the notes by the legal final maturity date in November 2010.
Nevertheless, even if principal and interest payments on the class
A and B notes are not made by the legal final maturity date, S&P
believes that there is still a significant likelihood that the
principal and interest payments will ultimately be made. Yet, S&P
may need to consider further rating actions on classes A to C if
the prospects of note repayment remain uncertain and the legal
final maturity date draws closer.
Meanwhile, S&P downgraded classes C to E because S&P believes that
there is also uncertainty over the recovery prospects of the
collateral properties that ultimately secure the aforementioned
defaulted loan. This view is based on S&P's assessment of the
collateral properties' characteristics.
Standard & Poor's also removed the ratings on classes D and E from
CreditWatch with negative implications. S&P intend to examine
reports submitted by the servicer, and assess a number of factors,
including progress in the implementation of the collection plan,
as well as the performance and recovery prospects of the
collateral properties.
WMTGF I is a single-borrower multi-asset CMBS (commercial
mortgage-backed securities) transaction. The notes issued under
this transaction are backed by a loan extended to a single
borrower. The loan was originally secured by eight extended-stay
limited-service apartment properties. The transaction was
arranged by Lehman Brothers Japan Inc. Capital Servicing Co. Ltd.
acts as the servicer for this transaction.
Ratings Lowered And Kept On Creditwatch Negative
WMT Global Funding I Inc.
JPY10.7 billion commercial mortgage backed notes due November 2010
Class To From Initial Issue Amount
----- -- ---- --------------------
A A/Watch Neg AA/Watch Neg JPY5.9 bil.
B A/Watch Neg AA/Watch Neg JPY1.4 bil.
C A-/Watch Neg A/Watch Neg JPY1.2 bil.
Ratings Lowered, Off Creditwatch Negative
Class To From Initial Issue Amount
----- -- ---- --------------------
D BB BBB/Watch Neg JPY1.0 bil.
E B- BB/Watch Neg JPY1.2 bil.
===========
T A I W A N
===========
AU OPTRONICS: Faces NT$140,000 Fine on Environmental Law Violation
------------------------------------------------------------------
Reuters reports that AU Optronics Corp. announced it was imposed a
fine of NT$140,000 by Environmental Protection Bureau of Taoyuan
County, due to the Company's violation of environmental protection
law.
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.
NANYA TECHNOLOGY: Posts Highest Monthly Sales in Two Years
----------------------------------------------------------
Lisa Wang at Taipei Times reports that Nanya Technology Corp.
posted its highest monthly sales in two years after prices
rebounded amid reduced supply.
The Times says Nanya Technology's sales jumped almost 39% in
September to NT$4.56 billion (US$141.18 million), compared with
NT$3.29 billion in the same period last year. This was the
strongest monthly sales figure since August 2007, when the
Taoyuan-based chipmaker made NT$4.84 billion, the report notes.
According to the report, Nanya said it had yet to make a profit
despite the improvement. Nanya, the Times state, rose contract
prices by between 10% and 15% month-on-month last month and
expects more increases this month.
Nanya reported a net loss of NT$6.5 billion for the second quarter
ended June 30, 2009, compared with a net loss of NT$7.29 billion
in the period in 2008.
For the 2008 fiscal year, the company posted a net loss of
NT$35.23 billion, or NT$7.54 per diluted share, compared with a
net loss of NT$12.46 billion in the prior year. The company
reported net sales of NT$36.31 billion in the fiscal year ended
Dec. 31, 2008, compared with a net sales of NT$52.89 billion in
fiscal year 2007.
Based in Taiwan, Nanya Technology Corp. (TPE:2408) --
http://www.nanya.com/-- is principally engaged in the
manufacture, development and sale of memory products. The company
primarily offers dynamic random access memory (DRAM) chips,
including double data rate (DDR) DRAM chips, DDR2 DRAM chips and
DDR3 DRAM chips; DRAM modules, such as 200-pin DDR small outline
(SO) dual in-line memory modules (DIMMs), 184-pin registered and
unbuffered DDR synchronous dynamic random access memory (SDRAM)
DIMMs, 200-pin DDR2 SODIMMs, 240-pin unbuffered and registered
DDR2 SDRAM DIMMs and others. DRAMs are used as data storage units
for computer, communications and consumer (3C) products.
TPO DISPLAYS: Acquired by Innolux in NT$21-Bil. Share Swap
----------------------------------------------------------
Innolux Display Corp., will acquire TPO Displays Corp. in a share
swap deal valued at about NT$21 billion, The China Post reports.
Inolux said Monday each Innolux share will be exchanged for eight
TPO shares.
According to the report, the acquisition will make it easier for
Innolux to obtain supplies of mobile-phone screens and broaden its
business to include handset makers.
TPO, a unit of Compal Electronics Inc., posted losses from 2003 to
2008 and reported a net loss of NT$1.98 billion, or 47 cents a
share, in the first six months of the year, the Post discloses.
About InnoLux Display
InnoLux Display Corporation is principally engaged in the
manufacture of thin film transistor-liquid crystal display (TFT-
LCD) panel modules and LCD monitors, mainly used for desktop
monitors, laptops, mobile phones and portable audio/video players.
During the year ended December 31, 2008, approximately 87% and 12%
of the Company's total revenue was from LCD monitors and TFT-LCD
panel modules, respectively. The Company distributes its products
in the domestic market and to overseas markets, including the rest
of Asia, the Americas and Europe.
About TPO Displays
Taiwan-based TPO Displays Corp. -- http://www.tpo.biz-- is
principally engaged in the research, development, production and
sale of thin film transistor liquid crystal displays (TFT LCDs).
The main products of the Company are low temperature
polycrystalline silicon TFT LCDs (LTPS TFT LCDs) and super twisted
nematic/ TFT LCDs (STN/TFT LCDs). The Company's products are used
for digital cameras, mobile phones, smart phones, personal digital
assistants (PDAs), digital video cameras, automobile televisions,
portable navigation devices (PNDs) and LCD monitors, among others.
The Company distributes its products within the domestic market
and to overseas markets, including Asia and Europe.
===============
T H A I L A N D
===============
GENERAL MOTORS: Shutters Thai Assembly Plant Amid Strike
--------------------------------------------------------
General Motors Thailand has temporarily shut its assembly plant in
southeast Rayong province due to a strike by workers.
Bangkok Post reports that about 200 union workers filed a notice
with GM on Saturday of their intention to strike Monday to demand
higher wages, welfare and benefits but GM management rushed to
close the plant before the strike began to ensure the safety and
security of all employees and property.
Citing a GM statement, the Post says that during the temporary
closure, the company would continue to pay all wages - and
variable bonus payments, welfare and benefits - to most of its
employees, except to those striking unionized employees.
The Post notes GM said it would endeavor to conduct further
negotiations with the union members to seek an amicable solution
to their demands as soon as possible.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp.
(NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM
employs about 266,000 people around the world and manufactures
cars and trucks in 35 countries. In 2007, nearly 9.37 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.
GM Europe is based in Zurich, Switzerland, while General Motors
Latin America, Africa and Middle East is headquartered in Miramar,
Florida.
As reported by the Troubled Company Reporter, GM reported net loss
of US$6.0 billion, including special items, in the first quarter
of 2009. This compares with a reported net loss of US$3.3 billion
in the year-ago quarter. As of March 31, 2009, GM had
US$82.2 billion in total assets and US$172.8 billion in total
liabilities, resulting in US$90.5 billion in stockholders'
deficit.
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Oct. 7-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Desert Ridge, Phoenix, Arizona
Contact: 312-578-6900; http://www.turnaround.org/
Oct. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Paris Las Vegas, Las Vegas, Nev.
Contact: http://www.abiworld.org/
Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
21st Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
Feb. 21-23, 2010
INSOL
International Annual Regional Conference
Madinat Jumeirah, Dubai, UAE
Contact: 44-0-20-7929-6679 or http://www.insol.org/
Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Ritz-Carlton Amelia Island, Amelia, Fla.
Contact: http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Contact: http://www.abiworld.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
*********
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 ***