/raid1/www/Hosts/bankrupt/TCRAP_Public/091105.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
Thursday, November 5, 2009, Vol. 12, No. 219
Headlines
A U S T R A L I A
BNY TRUST: Moody's Confirms Ratings Assigned on Senior Notes
CENTREX METALS: Set to Gain FIRB Approval on Chinese Investment
CRUSADE ABS: Fitch Takes Rating Actions on Various 2008-1 Notes
DRYSDALE AGED: Voluntary Administrators Appointed
OCTAVIAR LIMITED: ASIC Starts Civil Suit Against 3 Units, Officers
ONE.TEL: McGrathNicol Chief to Chair Creditors Meeting on Nov. 10
R.R. & S.M.: Court Appoints Paul Cook as Liquidator
TRANSURBAN GROUP: Rejects Unsolicited Offer from Canada Pension
WESTPOINT GROUP: Courts Orders PIS to Pay AU$5.9MM to Investors
C H I N A
HOPSON DEVELOPMENT: Panyu Zhujiang Deal Won't Move Moody's Rating
H O N G K O N G
ECO SWISS CHINA: Inability to Pay Debts Prompts Wind-Up
EGANA FAR EAST: Inability to Pay Debts Prompts Wind-Up
EGANA FINANCE: Inability to Pay Debts Prompts Wind-Up
EISENBERG AND COMPANY: Members' Final Meeting Set for December 1
FIDELITY SUPPLIES: Creditors' Meeting Set for November 13
GENERAL ASSOCIATE: Inability to Pay Debts Prompts Wind-Up
GOLDEN ORIENT: Members' Final Meeting Set for December 7
GUANGZHOU THE 6TH: Placed Under Voluntary Wind-Up Proceedings
GUINNESS DISTILLERS: Members' Final Meeting Set for November 30
HANDSOME INTERNATIONAL: Placed Under Voluntary Wind-Up Proceedings
INTER RIVER: Placed Under Voluntary Wind-Up Proceedings
JUNGHANS ASIA: Inability to Pay Debts Prompts Wind-Up
KAI CHUN: Commences Wind-Up Proceedings
KAI-YIN LO: Inability to Pay Debts Prompts Wind-Up
LATTIMER ASSOCIATES: Members' Final Meeting Set for December 7
I N D I A
AIR INDIA: Gets INR500cr Loan to Pay Delayed Allowance, Incentives
ALPEX EXPORTS: CRISIL Assigns 'BB' Rating on INR70MM Term Loan
AMROON FOODS: CRISIL Places 'BB' Ratings on INR75 Mln Term Loan
AUTOTEC SYSTEMS: CRISIL Puts 'BB+' Rating on INR1.10 Mln LT Loan
FAIR EXPORTS: CRISIL Assigns 'BB' Rating on INR400MM Term Loan
GEECO ENERCON: CRISIL Rates INR1.6 Mln Long Term Loan at 'BB'
GVS PROJECTS: Delays in Loan Payment Cue CRISIL 'D' Ratings
KRISHNA COIL: CRISIL Rates INR100 Million Cash Credit at 'BB+'
LORD GANESH: Loan Defaults Prompt CRISIL to Assign Junk Ratings
MEGAFLEX PLASTICS: CRISIL Places 'BB-' Rating on INR68MM Term Loan
OM PRAKASH: Weak Liquidity Prompts CRISIL to Assign 'B+' Rating
PANDESARA INFRASTRUCTURE: CRISIL Rates INR215.4MM Term Loan at 'D'
RAJ IMPEX: CRISIL Assigns 'BB' Rating on INR60.0 Mln Term Loan
REFORM FERRO: Stretched Liquidity Cues CRISIL Junk Ratings
RK MINING: CRISIL Rates INR90.0 Million Cash Credit at 'BB-'
SACHETA METALS: CRISIL Assigns 'BB' Rating on INR7.30MM Term Loan
SARTHAK METALS: Low Net Worth Cues CRISIL 'BB+' Ratings
SHREE UMIYA: CRISIL Assigns 'B' Ratings on Various Bank Debts
TATA STEEL: Q2 Net Profit Down 49% to INR9.02 Billion
I N D O N E S I A
BUKIT MAKMUR: Moody's Affirms Corporate Family Rating at 'Ba3'
J A P A N
JAPAN AIRLINES: Delta Steps Up Talks w/ JAL for Possible Alliance
JAPAN AIRLINES: May Delay Air Cargo Operations Merger Plan
SAIZEN REIT: Moody's Affirms Caa1' Corporate Family Rating
K O R E A
HANJI GROUP: Urged to Increase Capital to Cut Debt Ratios
HYNIX SEMICONDUCTOR: Deadline for Bids Extended for Two Weeks
M A L A Y S I A
TALAM CORP: Provides Update on Default Status as of September 30
TENGGARA OIL: Has MYR21.25 Million Outstanding Debt as of Oct. 31
WONDERFUL WIRE: Total Default Reaches MYR80.58MM as of October 31
N E W Z E A L A N D
ASIA PACIFIC: Mount Maunganui Project Put Into Mortgagee Sale
S I N G A P O R E
BEARINGPOINT ASIA: Creditors' Proofs of Debt Due on November 30
BEARINGPOINT 2002 ASIA: Creditors' Proofs of Debt Due on Nov 30
BEARINGPOINT 2002: Creditors' Proofs of Debt Due on Nov 30
BEARINGPOINT PTE: Creditors' Proofs of Debt Due on Nov 30
CHINA PRINTING: Creditors' Proofs of Debt Due on November 30
CITICARE MANAGEMENT: Creditors' Proofs of Debt Due on Nov. 30
ENVIRONMENT MANAGEMENT: Creditors' Proofs of Debt Due on Nov. 30
INSERVE (S) PTE: Creditors' Proofs of Debt Due on December 2
INTEGRA ENGINEERING: Court Enters Wind-Up Order
LINGUAPHONE SINGAPORE: Members' Final Meeting Set for November 30
SOUTH CENTRAL: Creditors' Proofs of Debt Due on November 30
T A I W A N
AMERICAN INT'L: ChinaTrust May Sue AIG Over Taiwan Unit Sale
- - - - -
=================
A U S T R A L I A
=================
BNY TRUST: Moody's Confirms Ratings Assigned on Senior Notes
------------------------------------------------------------
Moody's Investors Service has confirmed the ratings assigned to
the senior notes issued by BNY Trust Company of Australia Limited
in its role as Trustee for the Mobius ELR-01 Trust.
The rating action follows stabilization in the performance of the
underlying portfolio. It also reflects an easing of concern with
regard to macroeconomic factors and potential financial pressures
faced by the sub-originators and primary servicers of the
receivables securitized through the transaction.
After a rapid deterioration in the transaction's performance from
Q4 2008 to Q2 2009, with cumulative charge offs ultimately
reaching approximately 22.0% of the initial pool balance, recent
months saw loss accumulation taper off. Moreover, 90 days past
due delinquency rates have decreased from 18.6% at their peak to
4.10% as at September 30, 2009. At the same time, Class A Notes
have continued to be repaid at a rapid pace, building up note
subordination and providing greater comfort with regard to their
ability to withstand any future shocks.
The most recent previous rating action on Mobius ELR-01 Trust took
place on February 23, 2009, when Moody's downgraded all rated
securities issues by the Trust and placed the Class A Notes on
review for a further possible downgrade. At the time, the rating
action followed further deterioration in the credit profile of the
underlying receivables. In addition, Moody's expressed some
concern with regard the deteriorating economic environment and
potential financial pressures faced by the sub-originators and
primary servicers of the receivables securitized through the
transaction.
The ratings assigned to Mobius ELR-01 Trust are:
-- Class A Notes, Confirmed at Ba1; previously on Feb 23, 2009
Downgraded to Ba1 and Placed Under Review for Possible
Downgrade
-- Class B Notes, Current rating Ca; previously on Feb 23, 2009
Downgraded to Ca;
-- Class C Notes, Current rating C; previously on Feb 23, 2009
Downgraded to C;
-- Class D Notes, Current rating C; previously on Feb 23, 2009
Downgraded to C.
Moody's has previously taken rating actions with regard to Mobius
ELR-01 Trust on December 11, 2007; March 26, 2008; July 22, 2008,
October 27, 2008, and February 23, 2009.
Moody's ratings address only the credit risks associated with the
transaction. Other non-credit risks have not been addressed, but
may have significant effect on yield to investors. Moody's
ratings are subject to revision, suspension or withdrawal at any
time at Moody's absolute discretion. The ratings are expressions
of opinion and not recommendations to purchase, sell or hold
securities.
CENTREX METALS: Set to Gain FIRB Approval on Chinese Investment
---------------------------------------------------------------
Sarah-Jane Tasker at The Australian reports that Centrex Metals
Ltd. is set to be the next company to be granted approval by the
Foreign Investment Review Board to allow Chinese investment in one
of its projects.
According to the report, Centrex went into a trading halt on
November 3, citing a decision from FIRB on Wuhan Iron & Steel
(Group) Co.'s $234 million investment for a 60% stake in a joint
venture project and a 12.9% stake in Centrex, was imminent.
Centrex, says The Australian, already has a Chinese firm on its
register, with another state-owned steelmaker, Baotau Iron and
Steel, holding an 8.13% stake in the junior.
Centrex in August signed a AU$40 million deal with Baotau to
jointly develop another group of South Australian magnetite iron
ore assets in a deal before the FIRB, The Australian recalls.
About Wuhan Iron
Wuhan Iron and Steel Company Limited is principally engaged in the
production and sale of iron and steel products. The company
primarily provides hot rolled products including hot rolled
plates, medium thick boards, heavy sections, high speed wires and
steel bars, as well as cold rolled products including cold rolled
and coating boards and cold rolled silicon steel, among others.
During the year ended December 31, 2007, the company obtained
approximately 49% and 46% of its total revenue from the sale of
cold rolled products and hot rolled products, respectively. In
2007, the company produced approximately 11.65 million metric tons
of iron, 11.9 million metric tons of steel and 10.56 million
metric tons of steel products. The company mainly distributes its
products in China's domestic market.
About Centrex Metals
Based in Australia, Centrex Metals Limited (ASX:CXM) --
http://www.centrexmetals.com.au/-- is engaged in exploration for
iron ore. The company has tenement holdings over iron ore
resources and exploration targets on Eyre Peninsula in the
southern Gawler Craton.
* * *
Centrex Metals Limited incurred three consecutive net losses of
AU$2.18 million, AU$1.25 million and AU$0.66 million for the years
ended June 30, 2009, 2008 and 2007, respectively.
CRUSADE ABS: Fitch Takes Rating Actions on Various 2008-1 Notes
---------------------------------------------------------------
Fitch Ratings has upgraded four and affirmed two classes of notes
from Crusade ABS Series 2008-1 Trust, assigned Outlooks and Loss
Severity Ratings as detailed below. This transaction is backed by
a pool of prime auto receivables originated by St. George Finance
Limited.
-- EUR49.0 million Class A-2 affirmed at 'AAA'; Outlook Stable;
Loss Severity Rating assigned at 'LS-1';
-- AUD34.3 million Class A-3 affirmed at 'AAA'; Outlook Stable;
Loss Severity Rating assigned at 'LS-1';
-- AUD8.0 million Class B upgraded to 'AA' from 'A'; Outlook
Stable; Loss Severity Rating assigned at 'LS-2';
-- AUD3.5 million Class C upgraded to 'A' from 'BBB'; Outlook
Stable; Loss Severity Rating assigned at 'LS-3'.
-- AUD1.7 million Class D upgraded to 'BBB' from 'BB'; Outlook
Stable; Loss Severity Rating assigned at 'LS-3'; and
-- AUD1.0 million Class E upgraded to 'BB' from 'B'; Outlook
Stable; Loss Severity Rating assigned at 'LS-4'.
Class A-1 was paid in full in March 2009.
The rating actions and Stable Outlooks reflect Fitch's view that
the available credit enhancement is able to support the affirmed
and upgraded ratings of the transaction, and that the credit
quality and performance of the loans in the collateral pool remain
in line with the agency's expectations. This transaction was
closed in March 2008, and since then, 60% of the original
collateral balance has been used to pay down the principal of
Class A, B and C notes on a pro-rata basis. Subsequently, the
credit enhancement level for each class has reached almost twice
its respective level at closing.
"The realized loss rate (defined as the accumulated amount of
write-offs divided by the total collateral balance at closing) was
0.3% as at the end of September 2009, which is in line with
Fitch's expectations and assumptions set at closing," notes April
Chen, Associate Director in Fitch's Structured Finance team.
Losses experienced on sale of the collateral thus far have been
covered by the transaction's excess spread. As at 30 September
2009, the cumulative write-off was AUD1 million from 108 loans.
The 30+ day delinquencies have been below 2.4% since closing,
while the dollar value of these delinquencies has remained at
around AUD3.2 million. The stable credit quality and the steady
amortization of the notes' principal thus enhance the
subordination level to support the respective rating upgrades
above.
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.
DRYSDALE AGED: Voluntary Administrators Appointed
-------------------------------------------------
Deloitte partners Simon Wallace-Smith and Salvatore Algeri have
been appointed as Voluntary Administrators to Victorian nursing
home operator, Drysdale Aged Care Hostel Pty Ltd on October 23,
2009.
The appointment includes the management of one Victorian aged care
facility, Palmerston Court Hostel, that has just under 30
residents.
According to Mr. Wallace-Smith, the Voluntary Administrators have
formed a view that given the financial position of the business,
there was no alternative but to undertake an orderly closure of
the facility.
The Voluntary Administrators noted that prior to their appointment
an orderly sale process for the facility had been undertaken.
However, despite significant market exposure, no suitable offers
had been received for the facility and the Voluntary
Administrators had little option but to cease trading.
"The closure of this facility is driven by commercial
considerations and not as a result of care related issues,"
Mr. Wallace-Smith said. "Given the financial position of this
centre, we now have no alternative but to commence an orderly wind
down of the business. This will unfortunately adversely affect
some 25 residents and their dedicated staff."
"The Voluntary Administrators will continue to operate the
business whilst an orderly relocation of residents is undertaken."
The Voluntary Administrators have notified the Department of
Health and Ageing of the decision to close the centre. They have
commenced discussions with residents and employees regarding the
options available to them. The Receivers will continue to engage
with the Department throughout the notice period to ensure an
orderly relocation of all affected residents to alternative
accommodation.
"This decision is obviously not made lightly given the hardship
this will cause both residents, their families and staff," said
Mr. Wallace-Smith.
The company employs approximately 25 permanent staff.
Mr. Wallace-Smith confirmed that these staff will continue to be
paid on an ongoing basis until the relocation process is complete.
"The Voluntary Administrators and staff will continue to do as
much as they can to help residents with their search for new
accommodation," he said.
Located in Drysdale, Victoria, Drysdale Aged Care Hostel Pty Ltd.
provides aged care respite and permanent accommodation.
OCTAVIAR LIMITED: ASIC Starts Civil Suit Against 3 Units, Officers
------------------------------------------------------------------
The Australian Securities & Investments Commission has commenced
civil proceedings in the Supreme Court of Queensland against three
subsidiary companies of the formerly listed MFS Ltd (now known as
Octaviar Ltd) and four former officers and one manager of MFS
Investment Management Ltd.
The proceedings relate to the use of $147.5 million in funds of
the Premium Income Fund (PIF), for which MFS Investment Management
Ltd ('MFSIM', now known as Managed Investments Ltd) was the
responsible entity at the relevant time.
In taking this action, ASIC is addressing the core obligations of
a responsible entity and its directors and officers to operate the
fund with care and diligence, and in the best interest of the
fund's members.
The defendants in the matter are:
* Michael Christodoulou King of Canungra, Queensland,
former Chief Executive Officer (CEO) and Director of
MFS Ltd;
* Craig Robert White of Holland Park West, Queensland,
former Deputy CEO (and for a short period, CEO) and
director of MFS Ltd and MFSIM;
* Guy Hutchings of Paddington, NSW, former CEO and
director of MFSIM;
* David Mark Anderson of Robina, Queensland, former CFO
and Company Secretary of MFS Ltd;
* Marilyn Anne Watts of West Pennant Hills, NSW, former
fund manager of MFSIM;
* Managed Investments Ltd (formerly known as MFSIM and
Octaviar Investment Management Ltd);
* Octaviar Administration Pty Ltd (formerly MFS
Administration Pty Ltd) (In Liquidation); and
* Octaviar Castle Pty Ltd (formerly MFS Castle Pty Ltd
and MFS Investment Holdings No 17 Pty Ltd).
ASIC is seeking orders for declarations of contraventions,
pecuniary penalties, compensation and disqualifications from
managing corporations.
The transactions:
ASIC alleges that in November 2007, officers of MFSIM caused PIF
to transfer $130 million to MFS Administration Pty Ltd so that MFS
Administration could use those funds to pay financial obligations
of other MFS Ltd subsidiaries, including $103 million owed to
Fortress Credit Corporation (Australia) Pty Ltd by MFS Castle Pty
Ltd.
ASIC also alleges that in December 2007, officers of MFSIM caused
PIF to transfer $17.5 million to MFS Pacific Finance Ltd, a New
Zealand registered company (now known as OPI Pacific Finance Ltd
(Receivers and Managers Appointed)).
ASIC further alleges that in about January 2008, officers and the
fund manager of MFSIM created and used false documents, relating
to the use of the $147.5 million.
As a result of the funds being transferred, ASIC alleges that the
PIF suffered a loss of $147.5 million.
About Octaviar Limited
Headquartered in Queensland, Australia, Octaviar Limited (ASX:OCV)
-- http://www.mfsgroup.com.au-- formerly known as MFS Limited,
operates as an Investment Management business with a portfolio of
businesses and assets, including: operating businesses in the
leisure and childcare sectors; real estate portfolio; 35% interest
in the Stella Group; operating businesses which hold AFSL licenses
and act as Responsible Entity for a number of Managed Investment
Schemes.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 15, 2008, Octaviar Limited appointed John Greig and
Nicholas Harwood of Deloitte as Voluntary Administrators.
The directors of three Octaviar subsidiaries, Octaviar Financial
Services Pty Ltd, Octaviar Investment Notes Limited and Octaviar
Investment Bonds Limited, also appointed Messrs. Greig and Harwood
as Voluntary Administrators.
The TCR-AP reported on Sept. 17, 2008, that Fortress Credit
Corporation (Australia) II Pty Ltd., one of Octaviar Limited's
major creditors, appointed Stephen James Parbery and Anthony
Milton Sims of PPB as receivers and managers for Octaviar.
Octaviar's the creditors in December 2008 voted for a deed of
company arrangement over two entities in the Octaviar group,
Octaviar Limited and Octaviar Administration Pty Limited. The
three other companies in the group were subsequently wound up.
The TCR-AP reported on Aug. 4, 2009, that the Supreme Court of
Queensland placed Octaviar Limited into liquidation. Justice
Philip McMurdo terminated a deed of company arrangement
that has been in place since December, naming company
administrators John Greig and Nick Harwood at Deloitte, as
provisional liquidators.
Administrators and liquidators Greig and Harwood at Deloitte were
replaced by Bentleys Corporate Recovery under court order.
ONE.TEL: McGrathNicol Chief to Chair Creditors Meeting on Nov. 10
-----------------------------------------------------------------
The New South Wales Supreme Court has appointed McGrathNicol
chairman Tony McGrath to chair next week's One.Tel creditors'
meeting as an independent supervisor in an attempt to end the
bickering between the parties, The Sydney Morning Herald reports.
Mr. McGrath was on Tuesday given the green light by the NSW
Supreme Court to take up the position at the meeting on Nov. 10,
SMH says.
According to the report, the committee of inspection, which
represents all creditors, plans to propose a motion "of confidence
or no confidence" in One.Tel's special purpose liquidator, the
Pitcher Partners partner Paul Weston.
SMH notes NSW Supreme Court judge Reg Barrett said Mr. McGrath's
appointment will ensure "the reality and the perception of
impartiality".
SMH recalls that the court appointed Mr. Weston, a partner of
Pitcher Partners, in 2003 and gave him the sole role of
investigating whether One.Tel should sue News Ltd, Publishing and
Broadcasting Ltd and several professional advisory firms over the
abandonment of a $132 million capital raising shortly before
One.Tel's 2001 collapse.
As a fallback, says SMH, the committee has proposed a resolution
giving Mr. Weston a deadline of December 4 to secure litigation
funding for the potential suit against News and PBL (now
Consolidated Media Holdings).
While Mr. McGrath will act as chair of the meeting, Mr. Weston
will still be able to address creditors and present them with his
annual report, the report adds.
About One.Tel
One.Tel Limited is an Australian based telecommunications
company, belonging to One.Tel Group. One.Tel Ltd. was
established in 1995 soon after the deregulation of the
Australian telecommunications industry, most of which are
currently under external administration by court appointed
liquidators.
One.tel is currently in liquidation due to financial problems.
Ferrier Hodgson was appointed as voluntary administrator on
May 29, 2001. The administrator's report stated that the company
was insolvent as of March 2001. Accordingly, the administrator
terminated approximately 3,000 employees in June that same year.
Steve Sherman and Peter Walker of Ferrier Hodgson were then
named liquidators on July 24, 2001.
R.R. & S.M.: Court Appoints Paul Cook as Liquidator
---------------------------------------------------
The Australian Securities & Investments Commission has obtained
orders from the Federal Court in Tasmania to wind up R.R. & S.M.
Powell Holdings Pty Ltd.
Powell Holdings was formerly the operating company involved in the
manufacture and sale of Hartz Mineral Water.
On April 1, 2008, managing controllers were appointed to Powell
Holdings who subsequently sold the business to Juicy Isle Pty Ltd
in July 2008.
However, the proceeds from the realization of assets from the sale
were insufficient to allow any payout to employee creditors.
ASIC estimates that 38 employees are still owed approximately
AU$390,000 in unpaid wages, leave and redundancy pay. Through
ASIC's successful application, those employees will now be able to
access some of their entitlements through the General Employee
Entitlements and Redundancy Scheme (GEERS) administered by the
Department of Education, Employment and Workplace Relations.
GEERS is a basic payment scheme established to assist employees
who have lost their employment due to the liquidation or
bankruptcy of their employer and who are owed certain employee
entitlements. GEERS covers capped unpaid wages, annual and long
service leave, capped payment in lieu of notice and capped
redundancy pay.
Mr. Paul John Cook of Paul Cook & Associates was appointed by the
Court as the liquidator of Powell Holdings. Mr. Cook can be
contacted on (03) 6223 2555.
TRANSURBAN GROUP: Rejects Unsolicited Offer from Canada Pension
---------------------------------------------------------------
Transurban Group has rejected unsolicited takeover offer from
Canada Pension Plan Investment Board and Ontario Teachers' Pension
plan.
In a statement to the Australian Stock Exchange, Transurban said
that the proposal received was incomplete, highly conditional and
non-binding, which if implemented, would involve a change of
control of the group through a scheme of arrangement.
"The Board of Transurban Group has evaluated with its advisers,
Lazard and Mallesons, the proposal and has rejected it on its
current terms," the company said.
"Consistent with its fiduciary duties, the Board
of Transurban remains willing to engage on bona fide proposals
which provide appropriate value and certainty to security holders
in a change of control transaction."
About Transurban Group
Melbourne, Australia-based Transurban Group (ASX:TCL)--
http://www.transurban.com.au/-- is engaged in the operation of
CityLink, Hills M2 and the Pocahontas Parkway, provision of the
tolling and customer management system for the Westlink M7
Motorway project, tendering for participation in and/or
acquisition of other toll roads, development of electronic
tolling and other intelligent transport systems for
implementation in both domestic and international markets, and
identification and development of infrastructure projects. The
company also has a controlling interest in the Sydney Roads
Group.
* * *
Transurban Group incurred net losses of AU$152.18 million,
AU$105.34 million and AU$16.13 million for the years ended
June 30, 2007 through 2009.
WESTPOINT GROUP: Courts Orders PIS to Pay AU$5.9MM to Investors
---------------------------------------------------------------
The Federal Court of Australia has approved the settlement of a
compensation claim, initiated by the Australian Securities &
Investments Commission, to clients who were advised by
Professional Investment Services Pty Ltd to invest in the failed
Westpoint Group. Under the settlement, PIS must pay eligible
investors AU$5.9 million.
ASIC said in a statement that the Court approved a distribution
mechanism whereby the settlement sum will be distributed equally
to Group Members based upon the total capital that they had
invested. This will result in Group Members receiving 62.5% of
the capital they invested.
On September 7, 2009, ASIC filed an application with the Federal
Court in Brisbane seeking final determination of the identity of
Group Members to whom compensation will be distributed and seeking
approval for it to communicate with those Group Members.
Subsequently, ASIC provided details of the compensation Group
Members would likely receive and provided them with an opportunity
to object to the settlement.
The settlement is now binding upon the Group Members adjudicated
by the Court as being eligible to receive the settlement sum of
AU$5,945,176. Under the terms of the settlement, PIS has until
November 30 to pay the settlement.
ASIC will distribute the settlement upon the expiration of the
Federal Court appeal period or if an appeal is filed, upon the
finalization of that appeal. The earliest ASIC could distribute
the settlement is December 14, 2009, if no appeal is filed.
Background
In December 2007, ASIC commenced action against PIS in the Federal
Court of Australia. ASIC alleged PIS was negligent in its
provision of advice to investors in relation to the Westpoint
Group, and breached its Australian financial services licence.
PIS was one of seven Australian financial service licensees
against whom ASIC commenced proceedings for compensation on behalf
of Westpoint investors.
The investors in Westpoint-related financial products had an
outstanding total capital invested of $393 million as at
January 2006 when the Group collapsed. Since November 2007, ASIC
has commenced 19 civil actions seeking to recover funds for
investors in the majority of the Westpoint companies, including:
* a claim against KPMG, the former auditors of the Westpoint
Group;
* claims against the directors of nine Westpoint mezzanine
companies, and various entities associated with a director;
* claims against seven financial planners; and
* a claim against State Trustees Limited.
ASIC subsequently obtained court orders for a global mediation of
the actions commenced by ASIC for compensation arising from the
failure of the Westpoint group.
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 H I N A
=========
HOPSON DEVELOPMENT: Panyu Zhujiang Deal Won't Move Moody's Rating
-----------------------------------------------------------------
Moody's Investors Service sees no immediate impact on Hopson
Development Holdings Limited's B2 corporate family and B3 senior
unsecured debt ratings -- or its negative ratings outlook -- from
the company's purchases of 100% of Panyu Zhujiang Real Estate
Limited. The company, which possesses several pieces of land in
Panyu, Guangzhou, will be acquired from a connected party for a
net consideration of between RMB2.39-2.64 billion.
Moody's also notes that the transaction is subject to various
conditions, including minority shareholder approval.
"Hopson's liquidity profile will not be affected as the
acquisition will be fully funded by new equity issuance to the
Chairman, who will provide the guarantee for the due and punctual
performance by the Vendor of its obligations subject to a maximum
liability of RMB3.6 billion," says Kaven Tsang, a Moody's
AVP/Analyst.
"Though Hopson may have to incur additional costs to negotiate
with the local government for re-designating part of the newly
acquired land to be used for commodity residential/commercial
housing purpose rather than for economic housing, it is difficult
to ascertain the amount of additional costs at this stage," says
Tsang, also Moody's lead analyst for Hopson.
"However, the ratings may come under pressure if the additional
investments turn out to be significant and adversely affect
Hopson's profitability and credit profile," comments Tsang,
adding, "Related party transaction could raise Moody's concern
over corporate governance and further transactions that involve
material fund leakage could also stress the ratings."
Moody's last rating action with regard to Hopson occurred on
April 28, 2009, when the company's corporate family and senior
unsecured ratings were downgraded to B2 and B3 respectively with a
negative outlook.
Hopson Development Company Holdings Limited is one of the largest
property developers in China. Its principal business interests
are residential developments in 4 major cities -- Guangzhou,
Beijing, Shanghai and Tianjin -- and their surrounding areas.
================
H O N G K O N G
================
ECO SWISS CHINA: Inability to Pay Debts Prompts Wind-Up
-------------------------------------------------------
Eco Swiss China Time Limited on October 14, 2009, resolved to
voluntarily wind up the company's operations due to its inability
to pay debts when it becomes due.
The company's liquidators are:
Edward Simon Middleton
Fergal Thomas Power
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
EGANA FAR EAST: Inability to Pay Debts Prompts Wind-Up
------------------------------------------------------
Egana Far East Procurement Services Limited on October 14, 2009,
resolved to voluntarily wind up the company's operations due to
its inability to pay debts when it becomes due.
The company's liquidators are:
Edward Simon Middleton
Fergal Thomas Power
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
EGANA FINANCE: Inability to Pay Debts Prompts Wind-Up
-----------------------------------------------------
Egana Finance Limited on October 14, 2009, resolved to voluntarily
wind up the company's operations due to its inability to pay debts
when it becomes due.
The company's liquidators are:
Edward Simon Middleton
Fergal Thomas Power
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
EISENBERG AND COMPANY: Members' Final Meeting Set for December 1
----------------------------------------------------------------
Members of Eisenberg and Company (Hong Kong) Limited, which is in
voluntary liquidation, will hold their final meeting on Dec. 1,
2009, at 10:00 a.m., at Wing On Centre, 25/F, 111 Connaught Road
Central, in Hong Kong.
At the meeting, Kong Chi How Johnson , the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
FIDELITY SUPPLIES: Creditors' Meeting Set for November 13
---------------------------------------------------------
Creditors of Fidelity Supplies Corporation Limited will hold their
meeting on November 13, 2009, at 3:15 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 Unit 36, 16/F., One Grand Tower,
639 Nathan Road, Kowloon, in Hong Kong.
GENERAL ASSOCIATE: Inability to Pay Debts Prompts Wind-Up
---------------------------------------------------------
At an extraordinary general meeting held on October 19, 2009,
members of General Associate (H.K.) Co., Limited resolved to
voluntarily wind up the company's operations.
The company's liquidators are:
Huen Ho Yin
Mok Hon Kwong Thomas
Li Po Chun Chambers
189 Des Voeux Road
Central, Hong Kong
GOLDEN ORIENT: Members' Final Meeting Set for December 7
----------------------------------------------------------
Members of Golden Orient Developments Limited, which is in
voluntary liquidation, will hold their final meeting on Dec. 7,
2009, at 11:00 a.m., at 2202 Bonham Trade Centre, 50 Bonham
Strand, Sheung Wan, in Hong Kong.
At the meeting, Chan Chung Wah Clement, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
GUANGZHOU THE 6TH: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------------
At an extraordinary general meeting held on October 30, 2009,
members of Guangzhou the 6th Secondary School Old Boy's
Association (Hong Kong) Limited resolved to voluntarily wind up
the company's operations.
The company's liquidator is:
Tsang Wai Kit
May May Building, 6/F
Nos. 683-685 Nathan Road
Mongkok, Hong Kong
GUINNESS DISTILLERS: Members' Final Meeting Set for November 30
---------------------------------------------------------------
Members of Guinness Distillers Holdings Limited will hold their
final meeting on November 30, 2009, at 12:00 p.m., at 8th Floor,
Gloucester Tower, The Landmark, 15 Queen's Road Central, in Hong
Kong.
At the meeting, Iain Ferguson Bruce, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
HANDSOME INTERNATIONAL: Placed Under Voluntary Wind-Up Proceedings
------------------------------------------------------------------
At an extraordinary general meeting held on October 22, 2009,
members of Handsome International Investment Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Cheung Tak Man
Desmond of Suites 908-912, 9th Floor
One Pacific Place
88 Queensway
Hong Kong
INTER RIVER: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------
At an extraordinary general meeting held on October 19, 2009,
members of Inter River Limited resolved to voluntarily wind up the
company's operations.
The company's liquidator is:
Wong Kit Sang
Tern Centre, 8th Floor, Tower 1
237 Queen's Road
Central, Hong Kong
JUNGHANS ASIA: Inability to Pay Debts Prompts Wind-Up
-----------------------------------------------------
Junghans Asia Limited on October 14, 2009, resolved to voluntarily
wind up the company's operations due to its inability to pay debts
when it becomes due.
The company's liquidators are:
Edward Simon Middleton
Fergal Thomas Power
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
KAI CHUN: Commences Wind-Up Proceedings
---------------------------------------
Members of Kai Chun Enterprises Limited on October 23, 2009,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Eddie Man King Chi
Amber Commercial Building, 13th Floor
70 Morrison Hill Road
Hong Kong
KAI-YIN LO: Inability to Pay Debts Prompts Wind-Up
--------------------------------------------------
Kai-Yin Lo Limited on October 14, 2009, resolved to voluntarily
wind up the company's operations due to its inability to pay debts
when it becomes due.
The company's liquidators are:
Edward Simon Middleton
Fergal Thomas Power
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
LATTIMER ASSOCIATES: Members' Final Meeting Set for December 7
--------------------------------------------------------------
Members of Lattimer Associates Limited, which is in voluntary
liquidation, will hold their final meeting on Dec. 7, 2009, at
2202 Bonham Trade Centre, 50 Bonham Strand, Sheung Wan, in
Hong Kong.
At the meeting, Chan Chung Wah Clement, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
=========
I N D I A
=========
AIR INDIA: Gets INR500cr Loan to Pay Delayed Allowance, Incentives
------------------------------------------------------------------
The Times of India reports that the planned strike for November 24
by Air India pilots may not take place as the airline has managed
to secure a loan of INR500 crore as working capital, which will go
towards payment of delayed allowance and incentives to its
employees.
"The airline has got INR500 crore as working capital loan from
the from State Bank of India," the report quoted an airline
spokesperson, adding that the pending dues would be paid by
November 10 as promised by the airline.
The report relates that Air India pilots had threatened to go
on a strike from November 24 if their flying allowances and
productivity-linked incentives pending since the last few months
were not cleared by November 10.
As reported in the Troubled Company Reporter-Asia Pacific on
June 10, 2009, the National Aviation Company of India Ltd., the
holding company for the carrier, was seeking INR14,000 crore in
equity infusion, soft loans and grants.
The TCR-AP reported on June 19, 2009, that the Hindustan Times
said Air India has been bleeding due to excess capacity, lower
yield, a drop in passenger numbers, an increase in fuel prices and
the effects of the global slowdown. Air India's losses have
almost doubled to over INR4,000 crore in 2008-09 (INR2,226 crore
in 2007-08), according to the Hindustan Times.
A TCR-AP report on July 10, 2009, said NACIL is working overtime
to prepare by the month-end a business plan and a financial
restructuring plan. NACIL is also expected to come up with plans
for the next six months, 12 months and 18 months for bringing in
cost reduction and improving revenue generation.
About Air India
Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world. Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation. The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes. The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand. The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.
ALPEX EXPORTS: CRISIL Assigns 'BB' Rating on INR70MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank
facilities of Alpex Exports Pvt Ltd.
Facilities Ratings
---------- -------
INR10.0 Million Cash Credit BB/Stable (Assigned)
INR70.0 Million Term Loan BB/Stable (Assigned)
INR20.0 Million Proposed Long BB/Stable (Assigned)
Term Bank Loan Facility
INR75.0 Million Letter of Credit P4+ (Assigned)
The ratings reflect AEPL's limited financial flexibility arising
out of significant investments in the solar panel business, and
vulnerability of operating margins to volatility in the value of
the Indian rupee. The impact of the rating weaknesses are
mitigated by the benefits that AEPL derives from the industry
experience of its promoters, and its moderate financial risk
profile.
Outlook: Stable
CRISIL believes that AEPL will maintain a stable credit risk
profile over the medium term backed by the industry experience of
its promoters and its moderate financial risk profile. The
outlook may be revised to 'Positive' if there is significant
improvement in the company's revenues from the solar panel
business, with improvement in operating margin. Conversely, the
outlook may be revised to 'Negative' in case AEPL generates lower-
than-expected revenues from the solar panel business, or the
company undertakes large, debt-funded capital expenditure, thereby
weakening its capital structure.
About Alpex Exports
AEPL, incorporated in 1993, trades in textile products, including
creora (lycra) spandex, Samsung knitting needles, and nylon and
polyester yarns. The company installed two wind mills of 0.75 mega
watt (MW) each in Tamil Nadu for which it has an energy purchase
agreement with Tamil Nadu Electricity Board.
AEPL diversified its operations into manufacturing and exporting
solar panels, the commercial production of which commenced in
2008-09 (refers to financial year, April 1 to March 31). The
plant, a 100 per cent export-oriented unit (EOU), located in
Himachal Pradesh, has manufacturing capacity of 15 MW.
AEPL reported a profit after tax (PAT) of INR23.6 million on net
sales of INR325.2 million for 2008-09, as against a PAT of INR22.9
million on net sales of INR388 million for 2007-08.
AMROON FOODS: CRISIL Places 'BB' Ratings on INR75 Mln Term Loan
---------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank
facilities of Amroon Foods Pvt Ltd , a part of the Fair group.
Facilities Ratings
---------- -------
INR75 Million Term Loan BB/Stable (Assigned)
INR108.8 Million Proposed Term Loan BB/Stable (Assigned)
INR200 Million Export Packing Credit P4+ (Assigned)
INR400 Million Bill Discounting P4+ (Assigned)
INR5 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the group's weak financial risk profile marked
by low debt protection measures, and the susceptibility of its
revenues to any adverse change in the Government regulations. The
impact of these weaknesses is mitigated by the experience of the
group's promoters in the meat-trading business, coupled with their
established relationships with overseas clients.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Amroon and Fair Exports (I) Pvt Ltd
(Fair), together referred to as the Fair group. Fair has extended
financial support to Amroon, its 100 per cent subsidiary, through
corporate guarantees and unsecured loans to meet short-term
requirements.
Outlook: Stable
CRISIL expects the Fair group to maintain its business risk
profile, given its established relationships with key clients and
marketing support from the EMKE group. The outlook may be revised
to 'Positive' in case of a significant and sustainable improvement
in Fair group's gearing on the back of faster-than-expected
increase in sales and operating margins. Conversely, any large,
fresh debt-funded capital expenditure, or increased pressure on
profitability, resulting in steep deterioration in the capital
structure, could trigger an outlook revision to 'Negative'.
About the Group
Incorporated in 1991, Fair is in the business of export of
processed and frozen halal meat of buffalo and sheep. The company
was promoted by Mr. M K Abdullah and Mr. Yousaf Ali M A.
Mr. Abdullah is the promoter of the EMKE group, EMKE group is
operational in Qatar, Oman, Bahrain, Kuwait, the United Arab
Emirates and Saudi Arabia, through a chain of shopping malls,
hypermarkets, supermarkets and department stores. Fair has four
meat-processing units, one each at Sahibabad (Uttar Pradesh), Navi
Mumbai (Maharashtra), Kochi (Kerala), and Angamaly (Kerala).
Amroon is also in the business of export of processed, frozen
halal meat. The company has an integrated meat-processing
facility at Lucknow (Uttar Pradesh). The Fair group has a
combined annual processing capacity of 60,000 tonnes of buffalo
meat and 8200 tonnes of sheep. Apart from meat processing, Fair is
engaged in trading of garments, vegetables, and fruits to
countries in the Middle East (18.3 per cent of total revenue in
2007-08 [refers to financial year, April 1 to March 31]).
For 2007-08, the Fair group reported a profit after tax of INR14.4
million on net sales of INR4251 million, against INR1.1 million
and INR3859 million, respectively, in the previous financial year.
AUTOTEC SYSTEMS: CRISIL Puts 'BB+' Rating on INR1.10 Mln LT Loan
-----------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4+' to the bank
facilities of Autotec Systems Pvt Ltd.
Facilities Ratings
---------- -------
INR1.10 Million Long Term Loan BB+/Stable (Assigned)
INR17.50 Million Cash Credit* BB+/Stable (Assigned)
INR10.00 Million Letter of Credit* P4+ (Assigned)
INR45.00 Million Bank Guarantee* P4+ (Assigned)
* Includes proposed limit -- INR7.50 Million of Cash Credit,
Rs2.50 Million of Lettter Credit & INR7.5 Million of Bank
Guarantee.
The ratings reflect Autotec's limited revenue diversity and
susceptibility of its margins to volatility in raw material prices
and foreign exchange rates. The ratings also reflect the
company's large working capital requirements and small scale of
operations. These weaknesses are partially offset by Autotec's
established presence in the defence hardware industry, and its
moderate financial risk profile.
Outlook: Stable
CRISIL expects Autotec to maintain a stable credit risk profile
over the medium term, on the back of its established presence in
the defense hardware industry and comfortable order book. The
outlook may be revised to 'Positive' if the company scales up its
operations, while maintaining a healthy financial risk profile,
and diversifying its revenue base. On the other hand, the outlook
may be revised to 'Negative' if the company undertakes large,
debt-funded capital expenditure, or if its revenues and margins
decline because of unfavorable changes in government regulations
or in its relationships with customers and suppliers.
About Autotec Systems
Autotec, established in 2000, is the flagship company of the Rass
group that provides products pertaining to hardware, software, and
related support services to the defence sector. The Bengaluru-
based company manufactures, assembles, and trades in defense
hardware. The company reported a net loss of INR0.04 million on
net sales of INR67 million for 2008-09 (refers to financial year,
April 1 to March 31), against a profit after tax of INR22 million
on net sales of INR165 million for 2007-08.
FAIR EXPORTS: CRISIL Assigns 'BB' Rating on INR400MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank
facilities of Fair Exports (I) Pvt Ltd.
Facilities Ratings
---------- -------
INR400 Million Term Loan BB/Stable (Assigned)
INR264 Million Export Packing Credit * P4+ (Assigned)
INR241.5 Million Bill Discounting P4+ (Assigned)
INR10 Million Bank Guarantee P4+ (Assigned)
* Includes standby line of credit of INR44 million
The ratings reflect the Fair group's weak financial risk profile
marked by low debt protection measures, and the susceptibility of
the group's revenues to any adverse change in the Government
regulations. The impact of these weaknesses is mitigated by the
extensive experience of the group's promoters in the meat-trading
business, coupled with their established relationships with
overseas clients.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Fair and its wholly owned subsidiary,
Amroon Foods Pvt Ltd (Amroon), together referred to as the Fair
group. Fair has extended financial support to Amroon through
corporate guarantees and unsecured loans to meet short-term
working capital requirements.
Outlook: Stable
CRISIL expects the Fair group to maintain its business risk
profile, given its established relationships with key clients and
marketing support from the EMKE group. The outlook may be revised
to 'Positive' in case of a significant and sustainable improvement
in Fair group's gearing on the back of faster-than-expected
increase in sales and operating margins. Conversely, any large,
fresh debt-funded capital expenditure, or increased pressure on
profitability, resulting in steep deterioration in the capital
structure, could trigger an outlook revision to 'Negative'.
About the Group
Incorporated in 1991, Fair is in the business of export of
processed and frozen halal meat of buffalo and sheep. The company
was promoted by Mr. M K Abdullah and Mr. Yousaf Ali M A.
Mr. Abdullah is the promoter of the EMKE group, EMKE group is
operational in Qatar, Oman, Bahrain, Kuwait, the United Arab
Emirates and Saudi Arabia, through a chain of shopping malls,
hypermarkets, supermarkets and department stores. Fair has four
meat-processing units, one each at Sahibabad (Uttar Pradesh), Navi
Mumbai (Maharashtra), Kochi (Kerala), and Angamaly (Kerala).
Amroon is also in the business of export of processed, frozen
halal meat. The company has an integrated meat-processing facility
at Lucknow (Uttar Pradesh). The Fair group has a combined annual
processing capacity of 60,000 tonnes of buffalo meat and 8200
tonnes of sheep. Apart from meat processing, Fair is engaged in
trading of garments, vegetables, and fruits to countries in the
Middle East (18.3 per cent of total revenue in 2007-08 [refers to
financial year, April 1 to March 31]).
For 2007-08, the Fair group reported a profit after tax of INR14.4
million on net sales of INR4251 million, against INR1.1 million
and INR3859 million, respectively, in the previous financial year.
GEECO ENERCON: CRISIL Rates INR1.6 Mln Long Term Loan at 'BB'
--------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank
facilities of Geeco Enercon Pvt Ltd.
Facilities Ratings
---------- -------
INR1.6 Million Long Term Loan BB/Stable (Assigned)
INR 47.5 Million Cash Credit BB/Stable (Assigned)
INR20.0 Million Export Packing Credit P4+ (Assigned)
INR2.5 Million Bill Discounting P4+ (Assigned)
INR20.0 Million Letter of Credit P4+ (Assigned)
INR 20.0 Million Bank Guarantee P4+ (Assigned)
The ratings reflect GEPL's limited diversity in earnings profile,
small scale of operations, susceptibility to intense competition
in the air pre-heater spares industry and volatility in prices of
key raw materials, and large working capital requirements. The
impact of these weaknesses is mitigated by GEPL's strong industry
track record and healthy financial risk profile.
Outlook: Stable
CRISIL believes that GEPL will maintain its healthy financial risk
profile over the medium term backed by steady cash accruals and a
healthy order book. The outlook may be revised to 'Positive' if
the company scales up its operations, while maintaining its
healthy operating profitability. Conversely, the outlook may be
revised to 'Negative' in case GEPL's capital structure
deteriorates because of large, debt-funded capital expenditure.
About Geeco Enercon
Set up in 1987 by Mr. V Rajagopal and Mr. C Gunasekaran, GEPL
manufactures spares of air pre-heaters. The company's operates
mainly in the replacement market, since air pre-heaters are
corrosive in nature, and need to be replaced every three years.
GEPL reported a profit after tax (PAT) of INR25 million on net
sales of INR239 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR7 million on net sales
of INR174 million for 2007-08.
GVS PROJECTS: Delays in Loan Payment Cue CRISIL 'D' Ratings
-----------------------------------------------------------
CRISIL has assigned its ratings of 'D/P5' to the bank facilities
of GVS Projects Pvt Ltd.
Facilities Ratings
---------- -------
INR4.30 Million Long Term Loan D (Assigned)
INR20.00 Million Cash Credit D (Assigned)
INR35.70 Million Proposed Long D (Assigned)
Term Bank Loan Facility
INR40.00 Million Bank Guarantee P5 (Assigned)
The ratings reflect delays made by GVS Projects in repayment of
term loan obligations owing to constrained liquidity.
Set up in 2003 by Mr. G Balaji and Mrs. G Sai Rathnam, GVS
Projects undertakes electrical and engineering contracts and
projects. The company largely undertakes electrical projects such
as substation construction, laying of transmission lines, erection
of transformers, lighting and complete earthing work. It holds 33
kilo volt ampere (KVA) electrical licenses, and executes supply,
installation, testing and commissioning of high voltage indoor and
outdoor substations. GVS Projects also undertakes civil
construction and electrical engineering installations.
GVS Projects posted a profit after tax (PAT) of INR 12 million on
net sales of INR 227 million for 2008-09 (refers to financial
year, April 1 to March 31), as against a PAT of INR 2.6 million on
net sales of INR 76 million for 2007-08.
KRISHNA COIL: CRISIL Rates INR100 Million Cash Credit at 'BB+'
--------------------------------------------------------------
CRISIL has assigned its rating of 'BB+/Stable' to the cash credit
facility of Krishna Coil Cutters Pvt Ltd.
Facilities Ratings
---------- -------
INR100.0 Million Cash Credit BB+/ Stable (Assigned)
The rating reflects KCCPL's weak financial risk profile, and the
susceptibility of its operating profitability to volatility in
steel prices. The impact of these weaknesses is partially
mitigated by the experience of KCCPL's promoters in the steel
business, and the support it receives from its associate company,
Krishna Sheet Processors Pvt Ltd (KSPPL, CRISIL rated
BBB/Stable/P3+).
Outlook: Stable
CRISIL believes that KCCPL's financial risk profile will remain
weak over the medium term, and that its credit risk profile will
continue to be supported by financial support from KSPPL. The
outlook may be revised to 'Positive' if KCCPL reports significant
improvement in its operating income and profitability, and manages
to stabilise its rolling mill operations without time or cost
overruns. Conversely, the outlook may be revised to 'Negative' if
KCCPL's financial risk profile deteriorates because of
deterioration in its profitability amid volatility in steel
prices, if its debt levels increase significantly, or if KSPPL's
credit quality deteriorates.
About Krishna Coil
Incorporated in 2007, KCCPL is in the business of processing hot-
rolled and cold-rolled steel sheets, which are used in
automobiles, construction, steel furniture, and electric panels.
Its manufacturing unit is located at Barejagaon (Gujarat), and the
company caters to the Gujarat market. The current management team
comprises first generation entrepreneurs, with each member having
more than 30 years of relevant industry experience.
KCCPL reported a profit after tax (PAT) of INR5.64 million on net
sales of INR594.9 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR2.34 million on net
sales of INR129.8 million for 2007-08.
LORD GANESH: Loan Defaults Prompt CRISIL to Assign Junk Ratings
---------------------------------------------------------------
CRISIL has assigned ratings of 'D/P5' to the bank facilities of
Lord Ganesh Enterprise Pvt Ltd. The ratings factor in default by
LGEPL on its term loan obligations owing to weak liquidity.
Facilities Ratings
---------- -------
INR15 Million Cash Credit Limits D (Assigned)
INR7.6 Million Term Loan D (Assigned)
INR9.9 Million Proposed Long Term D (Assigned)
Bank Loan Facility
INR40 Million EPC/FBD P5 (Assigned)
INR7.5 Million Standby Line of Credit P5 (Assigned)
INR20 Million Letter of Credit P5 (Assigned)
For arriving at its ratings, CRISIL has combined the financial and
business risk profiles of LGEPL, and Reform Ferro Cast Pvt Ltd
(RFCPL). This is because the two companies, referred to as the
Lord Ganesh group, are in the same line of business and under a
common management.
About the Group
The Lord Ganesh group was set up by Mr. Basant Saha, his family,
and friend Mr. Shakti Adhikary. Set up in 2006, RFCPL produces
cast iron, ductile iron, and austempered ductile iron (ADI). The
foundry was set up at a total capital expenditure of INR318.9
million, funded at a debt-to-equity ratio of 1.68:1, and began
commercial operation in December 2008. The facility has a
consolidated capacity of 28780 tonnes per annum (tpa).
The Lord Ganesh group posted a provisional net profit of INR5
million on operating income of INR424 million for 2008-09 (refers
to financial year, April 1 to March 31), as against a profit after
tax (PAT) of INR4 million on operating income of INR206 million
for 2007-08.
About Lord Ganesh Enterprise
Mr. Basant Saha acquired LGEPL (formerly, Surya Iron Works Pvt
Ltd) in 2002. Since 2005-06, LGEPL has been manufacturing cast-
iron items particularly, manhole covers. It also trades in pig
iron, depending on market conditions. The company has capacity to
manufacture 12,000 tpa of cast iron.
MEGAFLEX PLASTICS: CRISIL Places 'BB-' Rating on INR68MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB-/Stable/P4+' to the bank
facilities of Megaflex Plastics Ltd.
Facilities Ratings
---------- -------
INR40 Million Cash Credit BB-/Stable (Assigned)
INR68 Million Term Loan BB-/Stable (Assigned)
INR8.8 Million Proposed Long BB-/Stable (Assigned)
Term Bank Loan Facility
INR3.2 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the small scale, and working-capital-intensive
nature, of MPL's operations, and its exposure to risks relating to
intense competition in the polypropylene bags industry. These
weaknesses are, however, partially offset by average growth in
MPL's revenues, supported by increased potential in the
polypropylene bags market.
Outlook: Stable
CRISIL believes that MPL will maintain a stable business risk
profile on the back of increasing growth prospects of the
industry. The outlook may be revised to 'Positive' if there is
substantial improvement in MPL's financial risk profile, supported
by capital infusion, and if the company maintains steady growth in
topline and operating margins. Conversely, outlook may be revised
to 'Negative' if MPL's financial profile deteriorates on account
of large, debt-funded capital expenditure.
About Megaflex Plastics
Set up in 2007 by Mr. Rakesh Sethia, MPL manufactures
polypropylene bags, which are used for packing bulk quantities of
fruits, vegetables and food grains. MPL has capacity to
manufacture 2400 tonnes of tapes per annum, and 27 leno looms for
making fabric. The company proposes to add 20 more looms over the
near term. MPL sells its products mostly through dealers and
distributors in West Bengal to various potato traders, farmers,
cold chains and bag traders.
MPL reported a profit after tax (PAT) of INR 1.2 million on net
sales of INR95 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR 2.4 million on net
sales of INR 50 million for 2007-08.
OM PRAKASH: Weak Liquidity Prompts CRISIL to Assign 'B+' Rating
---------------------------------------------------------------
CRISIL has assigned its ratings of 'B+/Stable/P4' to the bank
facilities of Om Prakash Surinder Mohan.
Facilities Ratings
---------- -------
INR70.0 Million Cash Credit Limit B+/Stable Assigned)
INR30.0 Million Bank Guarantee P4 (Assigned)
The ratings reflect OPSM's weak financial risk profile and
liquidity, and exposure to risks relating to small scale of
operations in the civil works industry, and limited diversity in
revenue profile. These weaknesses are mitigated by the firm's
established track record, and healthy order book.
Outlook: Stable
CRISIL believes that OPSM will maintain a stable business risk
profile because of an established track record and healthy order
book. However, OPSM's financial risk profile will remain weak
because of low net worth, and exposure to group entities. The
outlook may be revised to 'Positive' if the firm's capital
structure and net worth improve substantially. Conversely, the
outlook may be revised to 'Negative' if the firm undertakes large,
debt-funded capital expenditure, or an investment in a mall
project, leading to pressure on its financial risk profile.
Set up in 1979 as a proprietorship concern by Mr. Om Prakash
Khullar, OPSM was later converted into a partnership firm after
the induction of Mr. Surinder Mohan Khullar as partner. OPSM
undertakes various infrastructure-related construction activities
in Himachal Pradesh.
OPSM reported a book profit of INR20.6 million on net sales of
INR315.2 million for 2008-09 (refers to financial year, April 1 to
March 31), as against a book profit of INR7.2 million on net sales
of INR111.7 million for 2007-08.
PANDESARA INFRASTRUCTURE: CRISIL Rates INR215.4MM Term Loan at 'D'
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Pandesara Infrastructure Ltd to 'D/P5' from 'B/Stable/P4'.
Facilities Ratings
---------- -------
INR215.4 Million Term Loan D (Downgraded from 'B/Stable')
INR10.0 Million Bank Guarantee P5 (Downgraded from 'P4')
The downgrade reflects delay by PIL in repayment of term loan
obligations over the past few months owing to weak liquidity.
PIL's project -- to set up a common effluent treatment plant
(CETP) near Vadodara (Gujarat) -- is yet to be commissioned and
is, therefore, yet to generate revenues. PIL's interest on term
loan is about INR1.9 million per month, and is currently being
paid through funds infused by promoters.
Incorporated in June 2007, PIL is a special-purpose vehicle
promoted by Pandesara Green Environment and Water Welfare Co-
operative Society (PAGREW) to set up a common effluent treatment
plant (CETP) near Vadodara (Gujarat). The CETP will process
effluent discharge from Gujarat Industrial Development Corporation
(GIDC) at Pandesara (Gujarat). The total estimated capacity of
the CETP is 100 million litres per day. The project is being
implemented at an estimated cost of INR1.19 billion. PAGREW is a
cooperative society comprising members of GIDC, Pandesara, which
houses more than 600 manufacturing units, including 110 textile
and chemical units.
RAJ IMPEX: CRISIL Assigns 'BB' Rating on INR60.0 Mln Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Raj Impex (India).
Facilities Ratings
---------- -------
INR60.0 Million Term Loan BB/Stable(Assigned)
INR216.0 Million Packing Credit P4+ (Assigned)
The ratings reflect Raj Impex's dependence on the overseas markets
for revenue, susceptibility to volatility in foreign exchange
rates, moderate financial risk profile, and large working capital
requirements. The impact of these weaknesses is mitigated by Raj
Impex's strong track record in the human hair export business.
Outlook: Stable
CRISIL believes that Raj Impex will maintain its established
position in the hair export business on the back of its industry
experience. The outlook may be revised to 'Positive' if the firm's
financial risk profile improves because of reduction in its gross
current assets or improvement in its realizations and
profitability, driven by consolidation of its presence in the hair
export business by introduction of value-added products.
Conversely, the outlook may be revised to 'Negative' if Raj
Impex's financial risk profile deteriorates significantly because
of large, debt-funded capital expenditure and increased working
capital borrowings.
About Raj Impex
Raj Impex is a proprietorship firm established by Mr. R Benjamin
Cherian. The firm initially traded in granites, stones, and
ceramics, before venturing into processing and conditioning of
human hair, which it exports to the US, Europe, and China.
Raj Impex reported a profit after tax (PAT) of INR58.5 million on
net sales of INR400.9 million for 2007-08 (refers to financial
year, April 1 to March 31), against a PAT of INR18.1 million on
net sales of INR336.6 million for 2006-07.
REFORM FERRO: Stretched Liquidity Cues CRISIL Junk Ratings
----------------------------------------------------------
CRISIL has assigned ratings of 'D/P5' to the bank facilities of
Reform Ferro Cast Pvt Ltd.
Facilities Ratings
---------- -------
INR22.1 Million Cash Credit Limits D (Assigned)
INR200 Million Term Loan D (Assigned)
INR120 Million EPC/FBD P5 (Assigned)
INR8 Million Bank Guarantee P5 (Assigned)
The ratings reflect the company's stretched liquidity, leading to
recent overdrawn in working capital limits.
For arriving at its ratings, CRISIL has combined the financial and
business risk profiles of RFCPL and Lord Ganesh Enterprise Pvt Ltd
(LGEPL). This is because the two companies, referred to as the
Lord Ganesh group, are in the same line of business and under a
common management.
About the Group
The Lord Ganesh group was set up by Mr. Basant Saha, his family,
and friend Mr. Shakti Adhikary. Mr. Saha acquired LGEPL (formerly,
Surya Iron Works Pvt Ltd) in 2002. Since 2005-06 (refers to
financial year, April 1 to March 31), LGEPL has been manufacturing
cast-iron items particularly, manhole covers. It also trades in
pig iron, depending on market conditions. The company has
capacity to manufacture 12,000 tonnes per annum (tpa) of cast
iron.
The Lord Ganesh group posted a provisional net profit of INR5
million on operating income of INR424 million for 2008-09 (refers
to financial year, April 1 to March 31), as against a profit after
tax (PAT) of INR4 million on operating income of INR206 million
for 2007-08.
About Reform Ferro
Set up in 2006, RFCPL produces cast iron, ductile iron, and
austempered ductile iron (ADI). The foundry was set up at a total
capital expenditure of INR318.9 million, funded at a debt-to-
equity ratio of 1.68:1, and began commercial operation in
December 2008. The facility has a consolidated capacity of 28780
tpa.
RK MINING: CRISIL Rates INR90.0 Million Cash Credit at 'BB-'
------------------------------------------------------------
CRISIL has assigned its rating of 'BB-/Stable' to the cash credit
facility of RK Mining Pvt Ltd.
Facilities Ratings
---------- -------
INR90.0 Million Cash Credit BB-/Stable (Assigned)
The rating reflects RK Mining's exposure to risks relating to
customer concentration in revenue profile, and its limited track
record in the mining industry. These weaknesses are, however,
partially offset by the company's average financial risk profile.
Outlook: Stable
CRISIL believes that RK Mining will maintain a stable credit risk
profile over medium term, backed by its average financial risk
profile. The outlook may be revised to 'Positive' if the company
diversifies its client base, and scales up its operations.
Conversely, the outlook may be revised to 'Negative' if the
company's revenues decline sharply, or it undertakes any major
debt-funded capital expenditure, weakening its financial risk
profile.
Set up in April 2008 by Mr. B Ravi Kalyan Reddy, RK Mining
commenced operations in July 2008. The company undertakes
excavation and transportation of iron ore for Obulapuram Mining Co
Pvt Ltd. RK Mining has recently also entered into a contract with
Devi Hospet in Karnataka for excavation, transportation and
crushing of iron ore. RK Mining reported a profit after tax (PAT)
of INR30 million on operating income of INR383 million for 2008-09
(refers to financial year, April 1 to March 31).
SACHETA METALS: CRISIL Assigns 'BB' Rating on INR7.30MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank
facilities of Sacheta Metals Ltd.
Facilities Ratings
---------- -------
INR7.30 Million Term Loan BB/ Stable (Assigned)
INR60.00 Million Packing Credit P4+ (Assigned)
INR15.00 Million Letter of Credit P4+ (Assigned)
The ratings reflect Sacheta's small scale of operations in the
fragmented aluminium products industry, its large working capital
requirements, and vulnerability to volatility in raw material
prices and foreign exchange rates. The impact of these weaknesses
is mitigated by Sacheta's moderate financial risk profile, its
promoters' experience in the aluminium industry, and its presence
in both the domestic and export markets.
Outlook: Stable
CRISIL believes that Sacheta's scale of operations will remain
small, and its financial risk profile, moderate, over the medium
term. The outlook may be revised to 'Positive' if the company's
scale of operations increases significantly, or if its financial
flexibility improves, most likely through fresh equity infusion.
Conversely, the outlook may be revised to 'Negative' in case
Sacheta's financial risk profile deteriorates because of decline
in cash accruals or operating margin, or large debt-funded capital
expenditure.
About Sacheta Metals
Incorporated in 1988 as a private limited company, Sacheta is in
the business of manufacturing aluminium utensils and sheet coil
products. The company went public in 1995. It has two units at
Sabarkantha (Gujarat), one for manufacturing aluminium utensils,
and the other for aluminium sheet coil products, with capacities
of 800 tonnes per annum (tpa) and 6000 tpa, respectively.
Sacheta's profit after tax (PAT) is estimated at INR4.5 million on
net sales of INR359 million for 2008-09 (refers to financial year,
April 1 to March 31); it reported a PAT of INR4.1 million on net
sales of INR285.5 million for 2007-08.
SARTHAK METALS: Low Net Worth Cues CRISIL 'BB+' Ratings
-------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4+' to the bank
facilities of Sarthak Metals Marketing Pvt Ltd.
Facilities Ratings
---------- -------
INR50 Million Cash Credit BB+/Stable (Assigned)
INR1 Million Term Loan BB+/Stable (Assigned)
INR10 Million Short Term Bank Facility P4+ (Assigned)
INR6 Million Standby Line of Credit P4+ (Assigned)
INR35 Million Letter of Credit P4+ (Assigned)
INR5 Million Bank Guarantee* P4+ (Assigned)
* One way interchangeability with LC
The ratings reflect SMMPL's moderate financial risk profile marked
by low net worth, and susceptibility of margins to competitive and
fragmented nature of the wire industry. These weaknesses are,
however, partially offset by the benefits that SMMPL derives from
its promoters' experience in business and its established
relationships.
Outlook: Stable
CRISIL believes that SMMPL will maintain a stable business risk
profile on the back of benefits derived from the experience of its
promoters. The outlook may be revised to 'Positive' if SMMPL
enhances its revenues and profitability significantly; or to
'Negative' if it undertakes large, debt-funded capital expenditure
leading to deterioration in its financial risk profile.
About Sarthak Metals
SMMPL, set up in 1995, manufactures industrial gases. In 2003, the
company also began manufacturing cored and aluminum wires. The
company has capacities to produce 1 million cubic metres (CM) of
industrial gas and 3600 tonnes of cored wires per annum.
SMMPL reported a profit after tax (PAT) of INR 12 million on net
sales of INR657 million for 2007-08 (refers to financial year,
April 1 to March 31), as against a PAT of INR10 million on net
sales of INR452 million for 2006-07.
SHREE UMIYA: CRISIL Assigns 'B' Ratings on Various Bank Debts
-------------------------------------------------------------
CRISIL has assigned its ratings of 'B/Stable' to the bank
facilities of Shree Umiya Cotton Ginning and Pressing Pvt Ltd
(Shree Umiya).
Facilities Ratings
---------- -------
INR80.0 Million Cash Credit Limit B/Stable(Assigned)
INR10.0 Million Working Capital B/Stable(Assigned)
Demand Loan
INR7.5 Million Term Loan Facility B/Stable(Assigned)
The ratings reflect Shree Umiya's weak financial risk profile, and
exposure to risks relating to unfavorable changes in regulatory
policies governing the cotton industry. These weaknesses are,
however, partially offset by the benefits that the company derives
from its promoters' experience in the cotton industry.
Outlook: Stable
CRISIL believes that Shree Umiya will maintain a stable business
risk profile over the medium term, on the back of its promoters'
industry experience. The outlook may be revised to 'Positive', if
the company achieves high growth, while maintaining profitability.
Conversely, the outlook may be revised to 'Negative', if the
company's financial risk profile deteriorates due to the working-
capital-intensive nature of its operations, or large, debt-funded
capital expenditure.
About Shree Umiya
Set up in 2006, Shree Umiya undertakes cotton ginning and pressing
in Amreli (Gujarat). The company's plant has capacity to process
75,000 bales of cotton per annum, and operates at a capacity
utilization of around 50 per cent.
Shree Umiya reported a profit after tax (PAT) of INR0.96 million
on net sales of INR551 million for 2008-09 (refers to financial
year, April 1 to March 31), as against a PAT of INR0.18 million on
net sales of INR502 million for 2007-08.
TATA STEEL: Q2 Net Profit Down 49% to INR9.02 Billion
------------------------------------------------------
Tata Steel Ltd disclosed audited results for the quarter ended
September 30, 2009.
The Company posted a net profit of INR9.02 billion for the quarter
ended September 30, 2009, as compared to INR17.87 billion for the
quarter ended September 30, 2008. Total Income decreased from
INR70.54 billion for the quarter ended September 30, 2008 to
INR57.68 billion for the quarter ended September 30, 2009.
A full-text copy of the Company's audited financial results for
the quarter ended September 30, 2009, is available for free at
http://ResearchArchives.com/t/s?4840
Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/-- is a diversified steel producer. It
has operations in 24 countries and commercial presence in over 50
countries. Its operations predominantly relate to manufacture of
steel and ferro alloys and minerals business. Other business
segments comprises of tubes and bearings. On April 2, 2007, Tata
Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1,
which in turn is a subsidiary of Tata Steel completed the
acquisition of Corus Group plc. Tata Metaliks Limited, which is
engaged in the business of manufacturing and selling pig iron,
became a subsidiary of the Company with effect from February 1,
2008. In September 2008, the Company acquired a 7.3% interest in
Riversdale Mining Ltd.
* * *
As reported in the Troubled Company Reporter-Asia on June 10,
2009, Moody's Investors Service downgraded the corporate family
rating of Tata Steel Ltd to Ba3 from Ba2. Moody's said the rating
outlook is stable.
=================
I N D O N E S I A
=================
BUKIT MAKMUR: Moody's Affirms Corporate Family Rating at 'Ba3'
--------------------------------------------------------------
Moody's Investors Service has affirmed its Ba3 corporate family
rating for PT Bukit Makmur Mandiri Utama and the Ba3 senior
secured rating on the US$315 million 5-year notes issued by Prime
Dig Pte Ltd, an entity wholly owned by and whose bonds are also
guaranteed by Buma. These ratings have been removed from their
provisional status following the completion of the bond issuance.
The outlook on both ratings is stable.
The proceeds from the bond issue, along with a co-ordinated
US$285 million bank loan facility, will be used to refinance
outstandings under an existing US$366 million bank facility at the
Buma level as well as on-lend US$260 million to parent company PT
Delta Dunia Petroindo Tbk to retire indebtedness incurred by Delta
in connection with the acquisition of Buma.
Buma's ratings were assigned by evaluating factors Moody's believe
are relevant to the credit profile of the issuer, such as i) the
business risk and competitive position of the company versus
others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk. These
attributes were compared against other issuers both within and
outside of Buma's core industry and Buma's ratings are believed to
be comparable to those of other issuers of similar credit risk.
The last rating action was taken on 14th September 2009 when
Moody's assigned Buma's provisional Ba3 corporate family and bond
ratings.
Buma is wholly owned by Delta which is in turn 88% owned by a
consortium led by Northstar. Delta's principal asset is a 100%
stake in Buma. Buma is one of Indonesia's leading mining services
contractors providing full mine services to many of Indonesia's
largest coal mine companies.
=========
J A P A N
=========
JAPAN AIRLINES: Delta Steps Up Talks w/ JAL for Possible Alliance
-----------------------------------------------------------------
Delta Air Lines Inc. has hired investment bank Goldman Sachs
Group Inc. and public relations firm Fleishman-Hillard as its
advisor on "a possible alliance with Japan Airlines Corp.,"
people familiar with the negotiations told The Wall Street
Journal, indicating Delta's strengthened efforts to tie-up with
the ailing company.
Delta officers and executives are slated to visit Japan during
the first week of November 2009 to discuss the situation.
Similarly, American Airlines' parent AMR Corp.'s representatives
have been in Tokyo in October for separate talks with JAL, with
more executives scheduled to arrive in coming weeks, according to
the report.
Delta is reportedly eyeing to infuse "a couple hundred million
dollars" in JAL in exchange for a stake in Asia's largest airline
by revenue. JAL is seeking a capital injection of "about
JPY50 billion" from Delta, according to reports.
JAL also confirmed on-going negotiations with AMR, and indicated
that British Airways and the Australian carrier Qantas Airways
are also potential investors.
JAL had said it may consider "a breakup of the company along with
a range of other options." A special team was launched to draw
up restructuring plans for JAL by the end of November 2009.
About Delta Air Lines
With its acquisition of Northwest Airlines, Atlanta, Georgia-based
Delta Air Lines (NYSE: DAL) -- http://www.delta.com/or
http://www.nwa.com/-- became the world's largest airline
following merger with Northwest Airlines in 2008. From its hubs
in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul,
New York-JFK, Salt Lake City and Tokyo-Narita, Delta, its
Northwest subsidiary and Delta Connection carriers offer service
to more than 376 destinations worldwide in 66 countries and serves
more than 170 million passengers each year. The merger closed on
October 29, 2008.
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
October 20, 2009, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Japan Airlines Corp. and
Japan Airlines International Co. Ltd., its wholly owned
subsidiary, by two notches to 'B-' from 'B+' and its senior
unsecured rating by one notch to 'B' from 'B+'. The ratings
remain on CreditWatch with negative implications, where they were
placed on Sept. 18, 2009.
The rating actions reflect S&P's view that there is an increased
likelihood that the restructuring plan, overseen by the new
Democratic Party of Japan-led government, will include debt burden
reductions in the form of debt-for-equity swaps, debt forgiveness,
or legal protection, which negatively affect ratings according to
Standard & Poor's ratings definitions.
JAPAN AIRLINES: May Delay Air Cargo Operations Merger Plan
----------------------------------------------------------
Nippon Yusen KK and Japan Airlines Corp may delay the planned
integration of their air cargo operations, Japan Today reports,
citing Nippon Yusen President Yasumi Kudo.
The report says Mr. Kudo told reporters that "In-depth
negotiations have been somewhat delayed" and the details of the
possible deal have yet to be worked out. The April 1 launch of
integration "is not something we must realize at any cost," he
added.
As reported in the Troubled Company Reporter-Asia Pacific on
August 21, 2009, Reuters said Japan Airlines and Nippon Yusen
planned to integrate their air cargo businesses in April 2010.
Reuters said the most likely plan would be for Japan Airlines to
spin off its air cargo business and merge it with Nippon Yusen
unit, Nippon Cargo Airlines Co, in an effort to turn around their
unprofitable operations.
According to Reuters, Japan Airlines and Nippon Yusen will each
take a stake of slightly more than 45% in the new firm, with the
rest to be held by Nippon Cargo shareholders such as Nippon
Express Co and Yamato Holdings Co.
Nippon Yusen KK is a Japan-based shipping and transportation
company.
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
October 20, 2009, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Japan Airlines Corp. and
Japan Airlines International Co. Ltd., its wholly owned
subsidiary, by two notches to 'B-' from 'B+' and its senior
unsecured rating by one notch to 'B' from 'B+'. The ratings
remain on CreditWatch with negative implications, where they were
placed on Sept. 18, 2009.
The rating actions reflect S&P's view that there is an increased
likelihood that the restructuring plan, overseen by the new
Democratic Party of Japan-led government, will include debt burden
reductions in the form of debt-for-equity swaps, debt forgiveness,
or legal protection, which negatively affect ratings according to
Standard & Poor's ratings definitions.
SAIZEN REIT: Moody's Affirms Caa1' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has affirmed Saizen REIT's Caa1
corporate family rating. The rating outlook is negative.
"The affirmation reflects Moody's view that the failure of YK
Shintoku, one of Saizen's operating special purpose vehicles, to
pay a JPY7.3 billion Commercial Mortgage Backed Securities
obligation upon maturity on November 2, 2009, will have a limited
impact on Saizen's rating," says Kaven Tsang, a Moody's
AVP/Analyst.
"Saizen operates its properties through nine SPVs. Each SPV is
ring-fenced, and there are no cross-default clauses in YK
Shintoku's CMBS obligation. Therefore, the default will not have
a direct impact on the other SPVs' operations," says Tsang, also
Moody's lead analyst for Saizen.
"However, Saizen will lose control over approximately 21.6% of the
assets in its portfolio, and will also lose 22.4% of its rental
income due to the default. While this will weaken Saizen's
operating position and cash flow, the impact has been factored
into its existing Caa1 rating," adds Tsang.
The negative outlook reflects Saizen's weak liquidity,
characterized by the risk of a potential covenant breach due to
the risk of asset devaluation.
For the outlook to revert to stable, Saizen would have to
strengthen its banking relationships. Stabilization of Japan's
property market, which would prevent further declines in property
valuations and in turn mitigate the risk of covenant breaches,
would also support Saizen's rating outlook.
The last rating action was on 25 May 2009, when Saizen's rating
was downgraded to Caa1 with a negative outlook.
Saizen REIT is a multi-family REIT investing in Japanese regional
residential properties. It listed on the Singapore Stock Exchange
in November 2007. Its portfolio has 161 residential properties in
13 Japanese regional cities. The total value of properties under
management is around JPY42 billion (US$460 million). By revenue,
Sapporo is the largest contributor, representing 25%, followed by
Hiroshima (18%), and Kumamoto (15%).
=========
K O R E A
=========
HANJI GROUP: Urged to Increase Capital to Cut Debt Ratios
---------------------------------------------------------
Bloomberg News, citing the Maeil Business Newspaper, reports that
creditors called on Korean Air Lines Co. and Hanjin Shipping Co.
to increase capital in order to lower their debt ratios and secure
liquidity.
According to the report, the Korean-language publication said
Korean Air may increase capital by KRW200 billion (US$169.7
million) while Hanjin Shipping may raise KRW100 billion.
Officials at both companies have said they have no plans to
increase capital, Maeil said.
The Hanjin Group is a South Korean conglomerate. The group is a
holding company that includes a shipping company, Hanjin Shipping
(including Hanjin Logistics), and Korean Air (KAL), which was
acquired in 1969.
As reported in the Troubled Company Reporter-Asia Pacific on
October 19, 2009, The Korea Times said Hanjin Group will face
a creditor-initiated restructuring after failing a credit
assessment as a result of poor corporate performance.
The main creditor Korea Development Bank said it will sign a
memorandum of understanding with the conglomerate aimed at
strengthening its financial health.
"We have decided to sign a restructuring pact with Hanjin to turn
it around. The group failed our evaluation for the second time.
It would be unfair for six other business groups that already
signed the MOU with us in May if we did not apply the same
standard to Hanjin," the Times quoted a KDB official as saying.
HYNIX SEMICONDUCTOR: Deadline for Bids Extended for Two Weeks
-------------------------------------------------------------
Shinhye Kang at Bloomberg News reports that Hynix Semiconductor
Inc.’s creditors have extended a deadline for bids to gain control
of the South Korean chipmaker at the request of the sole bidder
Hyosung Corp.
Bloomberg relates Korea Exchange Bank said in an e-mailed
statement that the deadline is extended for two weeks from Nov. 2.
Hynix’s creditors planned to receive bids in October and select a
preferred bidder by the end of November, Korea Exchange Bank said
on Sept. 22.
Hynix Semiconductor Inc. -- http://www.hynix.com/-- is an Icheon,
South Korea-based memory semiconductor supplier offering Dynamic
Random Access Memory chips and Flash memory chips to a wide range
of established international customers. The Company's shares are
traded on the Korea Stock Exchange, and the Global Depository
shares are listed on the Luxemburg Stock Exchange.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
July 6, 2009, Fitch Ratings affirmed Hynix Semiconductor Inc.'s
Long-term foreign currency Issuer Default Rating at 'B+' and
assigned a Negative Outlook. Accordingly, the Rating Watch
Negative status previously assigned to the company's IDR on
December 12, 2008, has now been resolved. At the same time, the
agency downgraded the ratings for its outstanding senior unsecured
debt to 'B'/'RR5' from 'B+' and removed it from RWN.
Moody's Investors Service downgraded to B1 from Ba3 Hynix
Semiconductor Inc's corporate family and senior unsecured bond
ratings on Dec. 26, 2008. The outlook for both ratings remains
negative.
===============
M A L A Y S I A
===============
TALAM CORP: Provides Update on Default Status as of September 30
----------------------------------------------------------------
Talam Corporation Berhad disclosed with the Bursa Malaysia
Securities Bhd its default status to various credit facilities as
of September 30, 2009.
Default Status
A. These companies are in the midst of finalizing the sales and
purchase agreement for the disposal of the asset to repay the
banking facilities:
Amt. Outstanding
Subsidiary Lender of 09/30/2009
---------- ------ ----------------
Maxisegar Realty TA First Credit MYR27,803,390
Sdn Bhd Sdn Bhd MYR70,826,140
MYR76,441,642
B. These companies are finalizing the joint venture agreement
with the reputable developers where the joint venture
company will repay the loan:
Amt. Outstanding
Subsidiary Lender of 09/30/2009
---------- ------ ----------------
Zhinmun Sdn Bhd Insas Credit & MYR5,509,161
Leasing Sdn Bhd MYR22,806,662
Ukay Land Sdn Bhd Insas Credit & MYR14,877,584
Leasing Sdn Bhd
C. This company is in the midst of negotiating with financial
institutions to reschedule the banking facilities:
Amt. Outstanding
Subsidiary Lender of 09/30/2009
---------- ------ ----------------
Talam Corporation Bhd Pengurusan MYR3,312,139
Danaharta Nasional
Headquartered in Kuala Lumpur, Malaysia, Talam Corporation
Berhad -- http://www.talam.com.my/-- is principally engaged in
property development. Its other activities include trading
building materials, manufacturing of ready mixed concrete,
provision for higher educational programs, development and
management of hotel, golf and country club horticulturists,
agriculturists and landscaping designers and contractors and
investment holding. Operations of the group are carried out in
Malaysia and China.
The Troubled Company Reporter-Asia Pacific reported on Sept. 11,
2006, that based on the Audited Financial Statements of Talam
Corporation for the financial year ended Jan. 31, 2006, the
Auditors Ernst & Young were unable to express their opinion on the
Company's Audited Accounts. As such, the company is an affected
listed issuer of the Amended Practice Note 17 category. In
accordance with PN 17, the company is required to submit and
implement a plan to regularize its financial condition.
TENGGARA OIL: Has MYR21.25 Million Outstanding Debt as of Oct. 31
------------------------------------------------------------------
Tenggara Oil Bhd and its subsidiary company, Tenggara Concrete Sdn
Bhd, have been unable to pay the amount of principal and interest
in respect of its credit facilities as of September 30, 2009:
Lender Borrower Amount Due
------ -------- ----------------
CIMB Bank Bhd TOB MYR6,894,290.41
(Southern Bank Berhad)
CIMB Bank Bhd TOB 1,452,719.59
(Bumiputra-Commerce Bank
Bhd)
Malayan Banking Bhd TCSB 12,904,815.62
----------------
MYR21,251,825.62
Tenggara Oil Berhad is a Malaysia-based investment holding company
engaged in provision of management services. The principal
activities of the subsidiaries are filling, blending and
processing of lubricants. The Company's subsidiaries include
Tenggara Lubricant Sdn. Bhd., which is engaged in filling,
blending and processing lubricants; Tenggara Plaza Sdn. Bhd.,
which is engaged in letting and managing of property, and Tenggara
Concrete Sdn. Bhd., which is engaged in manufacturing and
supplying of ready-mixed concrete.
Tenggara is in the process of implementing a debt-restructuring
scheme with relevant parties.
WONDERFUL WIRE: Total Default Reaches MYR80.58MM as of October 31
-----------------------------------------------------------------
Wonderful Wire Berhad disclosed with the Bursa Stock Exchange
that the company's total default reached MYR80,585,185.79 as of
October 31, 2009, which comprises of:
Wonderful Wire's loans:
Principal & Interest
Lender Facility Outstanding (MYR)
------- -------- --------------------
CIMB Bank Berhad Short Term Advance 11,034,864.43
Overdraft 2,471,662.25
CIMB Factor Lease Berhad Leasing 4,198,993.35
Malayan Banking Berhad Term Loan 34,238,198.60
Overdraft 5,565,866.38
RHB Islamic Bank Berhad Term Financing 20,411,480.56
Revolving Credit 2,314,148.93
Bank Muamalat Malaysia Hire Purchase Car Loan 20,386.00
Orix Rentec (M) Rental of office
Sdn. Bhd. equipment 71,144.00
-------------
Total: 80,326,744.49
WWC Oil & Gas (Malaysia) Sdn. Bhd.'s loan:
Principal & Interest
Lender Facility Outstanding (MYR)
------- -------- --------------------
CIMB Factor Lease Bhd. Leasing 258,441.30
About Wonderful Wire
Wonderful Wire & Cable Berhad is a Malaysia-based company that
is engaged in the manufacture and trading of all kinds of
electrical wires and cables. The principal activities of the
company's subsidiaries include the investment holding, provision
for oil, gas and petroleum engineering, and design engineers and
contractors. Its subsidiaries include Wonderful Industries Sdn.
Bhd., WWC Oil & Gas (Malaysia) Sdn. Bhd., WWC Sealing (Malaysia)
Sdn. Bhd., Transmission Resources Sdn. Bhd., WWC Engineering (M)
Sdn. Bhd. and Wonderful Wire & Cable. In November 2006, the
company acquired the remaining 40% interest in WWC Sealing
(Malaysia) Sdn Bhd. The principal activity of WWC Sealing
(Malaysia) Sdn Bhd is to design, manufacture and market
different ranges of industrial seal and gasket.
On December 3, 2007, the company was classified as an affected
listed issuer pursuant to Bursa Malaysia Securities Berhad's
Practice Note 17 category as the company's shareholders' equity
on a consolidated basis for the unaudited results is less than
25% of the issued and paid-up capital for the third quarter
ended Sept. 30, 2007.
====================
N E W Z E A L A N D
====================
ASIA PACIFIC: Mount Maunganui Project Put Into Mortgagee Sale
-------------------------------------------------------------
Westpac bank has clamped down on property developer Philip
Lindsey's company Asia Pacific Management for failing to front up
to its mortgage payments for a Mount Maunganui project, The
National Business Review reports.
NBR says that almost an entire apartment building funded largely
by Westpac is going under the hammer at mortgagee auction.
According to the report, Asia Pacific Management could not find
buyers to purchase its Pacific Apartments off the plans. Only 17
of the total 70 apartments in the complex had been sold prior to
Westpac calling the rest be flogged off at mortgagee auction, NBR
notes.
The report says two commercial units on the ground floor will also
be offered at the mortgagee auction.
Bayleys were appointed by first mortgage holder Westpac to market
the property.
=================
S I N G A P O R E
=================
BEARINGPOINT ASIA: Creditors' Proofs of Debt Due on November 30
---------------------------------------------------------------
Creditors of Bearingpoint (Asia Pacific) Pte. Ltd. are required to
file their proofs of debt by November 30, 2009, to be included in
the company's dividend distribution.
The company's liquidators are:
Low Sok Lee Mona
Teo Chai Choo
Low, Yap & Associates
#04-01 SGX Centre 2
Singapore 068807
BEARINGPOINT 2002 ASIA: Creditors' Proofs of Debt Due on Nov 30
---------------------------------------------------------------
Creditors of Bearingpoint 2002 Asia Pacific Pte. Ltd. are required
to file their proofs of debt by November 30, 2009, to be included
in the company's dividend distribution.
The company's liquidators are:
Low Sok Lee Mona
Teo Chai Choo
Low, Yap & Associates
#04-01 SGX Centre 2
Singapore 068807
BEARINGPOINT 2002: Creditors' Proofs of Debt Due on Nov 30
----------------------------------------------------------
Creditors of Bearingpoint 2002 Singapore Pte. Ltd. are required to
file their proofs of debt by November 30, 2009, to be included in
the company's dividend distribution.
The company's liquidators are:
Low Sok Lee Mona
Teo Chai Choo
Low, Yap & Associates
#04-01 SGX Centre 2
Singapore 068807
BEARINGPOINT PTE: Creditors' Proofs of Debt Due on Nov 30
---------------------------------------------------------
Creditors of Bearingpoint Pte. Ltd. are required to file their
proofs of debt by November 30, 2009, to be included in the
company's dividend distribution.
The company's liquidators are:
Low Sok Lee Mona
Teo Chai Choo
Low, Yap & Associates
#04-01 SGX Centre 2
Singapore 068807
CHINA PRINTING: Creditors' Proofs of Debt Due on November 30
------------------------------------------------------------
Creditors of China Printing & Dyeing Holding Limited are required
to file their proofs of debt by November 30, 2009, to be included
in the company's dividend distribution.
The company's liquidators are:
Tay Puay Cheng
Chay Fook Yuen
KPMG Advisory Services Pte. Ltd.
16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
CITICARE MANAGEMENT: Creditors' Proofs of Debt Due on Nov. 30
-------------------------------------------------------------
Creditors of Citicare Management Pte. Ltd. are required to file
their proofs of debt by November 30, 2009, to be included in the
company's dividend distribution.
The company's liquidators are:
Teo Boon Tieng
c/o Blk 336 Smith St #04-306
New Bridge Centre
Singapore 050336
ENVIRONMENT MANAGEMENT: Creditors' Proofs of Debt Due on Nov. 30
----------------------------------------------------------------
Creditors of Environment Management Technologies Pte. Ltd. are
required to file their proofs of debt by November 30, 2009, to be
included in the company's dividend distribution.
The company's liquidators are:
Neo Ban Chuan
Cameron Duncan
KordaMenthaNeo Pte Ltd
30 Robinson Road
Robinson Towers, #12-01
Singapore 048546
INSERVE (S) PTE: Creditors' Proofs of Debt Due on December 2
------------------------------------------------------------
Creditors of Inserve (s) Pte. Ltd. are required to file their
proofs of debt by December 2, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on November 2, 2009.
The company's liquidator is:
Mdm Chia Lay Beng
1 Scotts Road
#21-08 Shaw Centre
Singapore 228208
INTEGRA ENGINEERING: Court Enters Wind-Up Order
-----------------------------------------------
The High Court of Singapore entered an order on October 23, 2009,
to have Integra Engineering Pte. Ltd's operations wound up.
Inter Power Engineering Pte Ltd filed the petition against the
company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's office
The URA Centre (East Wing)
45 Maxwell Road, #05-11/#06-11
Singapore 069118
LINGUAPHONE SINGAPORE: Members' Final Meeting Set for November 30
-----------------------------------------------------------------
Members of Linguaphone Singapore Pte Ltd will hold their final
meeting on November 30, 2009, at 10:00 a.m., at 25 International
Business Park, #04-22/26 German Centre, in Singapore.
At the meeting, Steven Tan Chee Chuan and Douglas Tan Kay Yeow,
the company's liquidators, will give a report on the company's
wind-up proceedings and property disposal.
SOUTH CENTRAL: Creditors' Proofs of Debt Due on November 30
-----------------------------------------------------------
Creditors of South Central Rubber (Private) Limited are required
to file their proofs of debt by November 30, 2009, to be included
in the company's dividend distribution.
The company commenced wind-up proceedings on October 28, 2009.
The company's liquidator is:
Mdm Chia Lay Beng
1 Scotts Road
#21-08 Shaw Centre
Singapore 228208
===========
T A I W A N
===========
AMERICAN INT'L: ChinaTrust May Sue AIG Over Taiwan Unit Sale
------------------------------------------------------------
The China Post reports that ChinaTrust Financial Holding Co. has
threatened to sue American International Group Inc. for violating
international practices during its sale of its Taiwanese
subsidiary.
The Troubled Company Reporter-Asia Pacific reported on Oct. 15,
2009, that AIG agreed to sell its 97.57% share of Nan Shan Life
Insurance Company, Ltd., to a consortium comprising Primus
Financial Holdings Limited, the Hong Kong-based financial services
firm, and China Strategic Holdings Limited, the Hong Kong Stock
Exchange-listed investment company, for approximately US$2.15
billion.
According to the Post, ChinaTrust spokesman Wu Yi-kuei said
Primus' bid was lower than the bid made by ChinaTrust.
The Post relates Mr. Wu said that in addition to bidding more for
Nan Shan, ChinaTrust also agreed to accept the conditions set down
by the local life insurer's union. AIG's rejection of more
favorable conditions has led ChinaTrust to consider suing the
financially troubled American insurance company, the Post states.
"AIG has apparently reneged upon common practice in international
corporate mergers by ignoring ChinaTrust's better offer," the Post
quoted Mr. Wu as saying.
The American insurer's public relations arm in Taiwan declined to
comment on the potential lawsuit Monday, saying only that it needs
to gain a better understanding of the matter, the Post adds.
Based in New York, American International Group, Inc., is the
leading international insurance organization with operation in
more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance
networks of any insurer. In addition, AIG companies are leading
providers of retirement services, financial services and asset
management around the world. AIG's common stock is listed on the
New York Stock Exchange, as well as the stock exchanges in Ireland
and Tokyo.
In September 2008, AIG experienced a liquidity crunch when its
credit ratings were downgraded below "AA" levels by Standard &
Poor's, Moody's Investors Service and Fitch Ratings. On
September 16, 2008, the Federal Reserve Bank created an
$85 billion credit facility to enable AIG to meet increased
collateral obligations consequent to the ratings downgrade, in
exchange for the issuance of a stock warrant to the Fed for 79.9%
of the equity of AIG. The credit facility was eventually
increased to as much as $182.5 billion.
AIG has sold a number of its subsidiaries and other assets to pay
down loans received from the U.S. government, and continues to
seek buyers of its assets.
*********
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 ***