/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100114.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, January 14, 2010, Vol. 13, No. 009 Headlines A U S T R A L I A GRIFFIN COAL: Administrators Get 26 Creditors Committee Nominees KLEENMAID GROUP: Compass Capital Offers Product to Customers C H I N A CITIGROUP INC: Discloses 9.9% Equity Stake in Wuhan (China) SHANGHAI AIRLINES: Seeks to Delist Shares from Shanghai Bourse H O N G K O N G GOLD HERO: Court Enters Wind-Up Order GREEN HARBOUR: Members' Final Meeting Set for February 11 GREENWOOD DESIGN: Court Enters Wind-Up Order GOLD RAMBO: Court Enters Wind-Up Order HEDWORTH LIMITED: Court Enters Wind-Up Order HK ASSOCIATION: Placed Under Voluntary Wind-Up Proceedings HK BREWING: Chan and Wong Step Down as Liquidators HOPEWILL ENGINEERING: Court Enters Wind-Up Order INTERBREW ZHEJIANG: Members' Final Meeting Set for February 9 INTERNATIONAL INSTITUTE: Members' Final Meeting Set for February 9 J'S PUBLICATIONS: Court Enters Wind-Up Order JOYFUL FALCON: Commences Wind-Up Proceedings JOYFUL LONG: Lees and Ng Appointed as Liquidators K.Y. CATERING: Court Enters Wind-Up Order KINGSWAY CORPORATION: Court Enters Wind-Up Order KONG HING: Court Enters Wind-Up Order KWONG YICK: Creditors and Contributories to Meet on Feb. 5 LABOUR BUILDINGS: Court to Hear Wind-Up Petition on February 24 LASALLE TRADE: Creditors' Proofs of Debt Due February 8 LEE DUNG: Court to Hear Wind-Up Petition on February 3 LEGEND PROFIT: Court to Hear Wind-Up Petition on February 24 LEVA (HK): Members' Final General Meeting Set for February 10 LIK PANG: Court Enters Wind-Up Order LONGSHAFT LIMITED: Placed Under Voluntary Wind-Up Proceedings LUCKY TECH: Court Enters Wind-Up Order I N D I A D A JHAVERI: CRISIL Reaffirms 'P4+' Ratings on Various Bank Debts DECCAN POLYPACKS: CRISIL Assigns 'B' Rating on INR55MM Bank Debts ECOHOMES CONSTRUCTIONS: CRISIL Rates INR132.5MM Term Loan at 'BB' EVEREADY SPINNING: CRISIL Puts 'BB+' Ratings on Various Bank Debts EVERGREEN VENEERS: CRISIL Puts 'BB-' Rating on INR25MM Cash Credit GARG INDUSTRIES: CRISIL Assigns 'BB' Rating on INR75.9MM Term Loan GOLDEN JUBILEE: ICRA Assigns 'LBB+' Rating on INR3.5BB LT Loans JCO GAS: CRISIL Downgrades Rating on INR350MM Term Loan to 'B-' HYT ENGINEERING: CRISIL Places 'C' Ratings on INR101.6MM Term Loan MANI SPINNING: CRISIL Reaffirms 'BB+' Rating on Cash Credit SUNSTAR PRECISION: ICRA Places 'LB' Rating on INR309MM Bank Debts VAYHAN COFFEE: ICRA Assigns 'LB' Rating on INR510MM Term Loans J A P A N BEST DENKI: To Wind-Up Sakuraya Unit Next Month Due to Losses FORD MOTOR: Japan Unit to Recall 13,729 Units of Explorer SUV JAPAN AIRLINES: Chapter 11-Type Restructuring Needed for Tie Up JAPAN AIRLINES: Looming Bankruptcy to Affect 10,000 Firms JAPAN AIRLINES: Qantas May Keep Codeshare Agreement JAPAN AIRLINES: Government Taps Inamori to Lead JAL's Revival JAPAN AIRLINES: Wins Retirees Approval for 30% Pension Cuts K O R E A HYNIX SEMICONDUCTOR: Credit Suisse Prefers Local Buyers for Stake KUMHO ASIANA: Fires 7 CEOs Amid Liquidity Crisis M A L A Y S I A AKN TECHNOLOGY: Enhanced Regularization Plan Submitted POLY TOWER: Fails to Submit Annual Financial Statement - - - - - ================= A U S T R A L I A ================= GRIFFIN COAL: Administrators Get 26 Creditors Committee Nominees ---------------------------------------------------------------- Jason Scott at Bloomberg News reports that Griffin Coal Mining Co. on Wednesday received 26 applicants to join a committee of creditors at a meeting in Perth. Bloomberg relates Brian McMaster of administrator KordaMentha said the number of applicants may make the committee "unworkable." Mr. McMaster would prefer the committee to be comprised of up to 10 members, The Sydney Morning Herald reports. The Herald says parties including Japan's Mitsui and Co. have been nominated to join the committee. Mr. McMaster adjourned the meeting briefly in a bid to reduce the amount of applicants, Bloomberg notes. As reported by the Troubled Company Reporter-Asia Pacific on January 4, 2010, Griffin Coal Mining Co. appointed Kordamentha as administrator with total debts amounting to about AU$700 million. The coal supplier defaulted on an interest payment in December to bondholders owed US$475 million and also missed a payment to Australia's tax authority. Based in Australia, The Griffin Coal Mining Company Pty Ltd -- http://www.griffincoal.com.au/-- is engaged in coal mining and processing. Griffin Coal operates major mines in the Collie area, approximately 220 kilometers south east of Perth. The Company is producing more than three million tons of coal per year. Griffin Coal has operations at Ewington Mine, Muja Mine and Buckingham Mine. KLEENMAID GROUP: Compass Capital Offers Product to Customers ------------------------------------------------------------ The Sydney Morning Herald reports that Compass Capital Partners, a private equity firm behind the new Kleenmaid venture, offered out- of-pocket customers the chance to buy the whitegoods again -- but at a "discount" rate. The Herald relates that about 4,500 customers paid deposits or the full price of kitchen and laundry goods before Kleenmaid Group went into administration nine months ago. These customers unlikely to get any of their money back from the administrators after creditors sent the group into liquidation. According to the report, Compass Capital, the company that bought the rights to the well-known brand name, is trying to drum up business by offering customers another chance to buy the products. Compass Capital describes the discount offer as a "goodwill gesture" designed to help repair the tarnished brand for future sales, the Herald says. According to the report, Compass Capital is also trying to sell some former customers new two-year warranties, after their previous warranties became invalid following the collapse. Founded in 1985, Kleenmaid Group -- http://www.kleenmaid.com.au/ -- sells kitchen and laundry appliances. The Troubled Company Reporter-Asia Pacific reported on April 13, 2009, that Kleenmaid Group has been placed into administration. The company appointed Deloitte partners John Greig, Richard Hughes and David Lombe as voluntary administrators. A TCR-AP report on May 26, 2009, said the creditors of Kleenmaid Group voted to wind up the company at a meeting in Brisbane. The TCR-AP, citing a report posted at news.com.au, said that the administrators had recommended that Kleenmaid be put into liquidation, saying the company may have been insolvent as early as June 2007. The administrators said Kleenmaid creditors are owed AU$102 million, which included AU$3 million owed to Kleenmaid employees. Liquidators from Deloitte have not yet finished their report on claims the former Kleenmaid Group may have been trading while insolvent for up to two years, according to The Sydney Morning Herald. ========= C H I N A ========= CITIGROUP INC: Discloses 9.9% Equity Stake in Wuhan (China) ----------------------------------------------------------- Citigroup Alternative Investments LLC; Citigroup Investments Inc.; and Citigroup Inc. disclose holding 2,701,924 shares or roughly 9.9% of the common stock of Wuhan General Group (China), Inc., as of December 31, 2009. Based in New York, Citigroup Inc. (NYSE: C) -- is a global diversified financial services holding company whose businesses provide a broad range of financial services to consumer and corporate customers. Citigroup has roughly 200 million customer accounts and does business in more than 140 countries. Citigroup's businesses are aligned in three reporting segments: (i) Citicorp, which consists of Regional Consumer Banking (in North America, EMEA, Asia, and Latin America) and the Institutional Clients Group (Securities and Banking, including the Private Bank, and Transaction Services); (ii) Citi Holdings, which consists of Brokerage and Asset Management, Local Consumer Lending, and a Special Asset Pool; and (iii) Corporate/Other. As reported in the Troubled Company Reporter on November 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. The U.S. Treasury and the Federal Deposit Insurance Corporation agreed to provide protection against the possibility of unusually large losses on an asset pool of roughly $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup issued preferred shares to the Treasury and FDIC. The Federal Reserve agreed to backstop residual risk in the asset pool through a non-recourse loan. Citigroup, the third-biggest U.S. bank, received $45 billion in bailout aid. Other bailed-out banks, including Bank of America Corp., Wells Fargo & Co., have pledged to repay TARP money. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, repaid TARP funds in June. Citigroup is selling assets to repay the bailout funds. Citigroup is one of the banks that, according to results of the government's stress test, need more capital. SHANGHAI AIRLINES: Seeks to Delist Shares from Shanghai Bourse -------------------------------------------------------------- China Daily reports that Shanghai Airlines, which is scheduled to merge with China Eastern Airlines, said it is seeking to delist its shares from the Shanghai Stock Exchange. The company's shares were suspended from trading following the notice, the report says. Despite the merger, Shanghai Airlines is expected to retain an independent operational license, China Daily discloses. According to the report, Shanghai Airlines' shareholders can choose between selling their Shanghai Airlines' shares to China Eastern for CNY5.5 each, or accepting 1.3 China Eastern shares for each Shanghai Airlines' share. Dissenting shareholders of China Eastern can also convert their stock to cash at a rate of CNY5.28 per share, the Daily notes. China Eastern shares will not be available to stakeholders until the merger is completed, according to the Daily. China Eastern said in July it would buy smaller rival Shanghai Airlines via a 9-billion-yuan (US1.3 billion) share swap that would give it a market share of more than 50% in Shanghai, China's financial hub. The Troubled Company Reporter-Asia Pacific reported on March 26, 2009, that Shanghai Airlines posted a CNY1.25 billion net loss in 2008, more than double from CNY435.12 million net loss it incurred in 2007. The company attributed the losses to plunging air travel demand and a significant rise in operating costs due to higher fuel prices for most of the year. At the end of the third quarter of 2009, total assets of Shanghai Airlines amounted to CNY16 billion, on a debt ratio of 93.1% and quarterly losses of CNY253 million, China Daily says. About Shanghai Airlines Shanghai Airlines Co., Limited -- http://www.shanghai-air.com/ -- is a China-based commercial airline company. The company mainly provides air passenger and air cargo transportation services and air mail services domestically and internationally. The company also develops traveling, import and export trading and advertising businesses. As of December 31, 2007, the company had 58 airplanes. In 2007, the company develops 10 new national airlines and three new international airlines. During the year ended December 31, 2007, the company transported approximately 9.45 million passengers and 327,400 metric tons of cargos. As of December 31, 2007, the company had 15 major subsidiaries and associates. ================ H O N G K O N G ================ GOLD HERO: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on December 30, 2009, to wind up the operations of Gold Hero (Asia) Limited. The official receiver is E T O'Connell. GREEN HARBOUR: Members' Final Meeting Set for February 11 --------------------------------------------------------- Members of Green Harbour Limited, which is in members' voluntary liquidation, will hold their final general meeting on February 11, 2010, at 10:00 a.m., at Room 2/F, Leader Centre, 37 Wong Chuk Hang Road, in Hong Kong. At the meeting, Thomas Chan King Tin, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GREENWOOD DESIGN: Court Enters Wind-Up Order -------------------------------------------- The High Court of Hong Kong entered an order on December 23, 2009, to wind up the operations of Greenwood Design & Decoration Limited. The official receiver is E T O'Connell. GOLD RAMBO: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on December 30, 2009, to wind up the operations of Gold Rambo Limited. The official receiver is E T O'Connell. HEDWORTH LIMITED: Court Enters Wind-Up Order -------------------------------------------- The High Court of Hong Kong entered an order on December 30, 2009, to wind up the operations of Hedworth Limited. The official receiver is E T O'Connell. HK ASSOCIATION: Placed Under Voluntary Wind-Up Proceedings ---------------------------------------------------------- At an extraordinary general meeting held on December 30, 2009, creditors of Hong Kong Association for the Protection of Water Resources Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Chiu Ming Chung Joe Tam Kwok Kong Room 1228, 12/F One Grand Tower 639 Nathan Road Kowloon HK BREWING: Chan and Wong Step Down as Liquidators -------------------------------------------------- Antonio Chan and Wong Kwok Man stepped down as liquidators of Hong Kong Brewing & Restaurants Limited on November 27, 2009. HOPEWILL ENGINEERING: Court Enters Wind-Up Order ------------------------------------------------ The High Court of Hong Kong entered an order on December 30, 2009, to wind up the operations of Hopewill Engineering Limited. The official receiver is E T O'Connell. INTERBREW ZHEJIANG: Members' Final Meeting Set for February 9 ------------------------------------------------------------- Members of Interbrew Zhejiang Holding Limited, which is in members' voluntary liquidation, will hold their final general meeting on February 9, 2010, at 10:00 a.m., at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong. At the meeting, Ying Hing Chiu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. INTERNATIONAL INSTITUTE: Members' Final Meeting Set for February 9 ------------------------------------------------------------------ Members of International Institute for Outsource Management Asia Pacific Limited, which is in members' voluntary liquidation, will hold their final general meeting on February 9, 2010, at 10:00 a.m., at Unit 511, Tower One, Silvercord, 30 Canton Road, Tsimshatsui, Kowloon, in Hong Kong. At the meeting, Ho Man Kit and Kong Sze Man Simone, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. J'S PUBLICATIONS: Court Enters Wind-Up Order -------------------------------------------- The High Court of Hong Kong entered an order on December 30, 2009, to wind up the operations of J'S Publications Limited. The official receiver is E T O'Connell. JOYFUL FALCON: Commences Wind-Up Proceedings -------------------------------------------- Members of Joyful Falcon Limited, on December 29, 2009, passed a resolution to voluntarily wind-up the company's operations. The company's liquidators are: Ho Mo Han Miranda Au Wai Keung China Insurance Group Building Unit 2601, 26/F 141 Des Voeux Road Central Hong Kong JOYFUL LONG: Lees and Ng Appointed as Liquidators ------------------------------------------------- John Robert Lees and Mat Ng on November 26, 2009, were appointed as liquidators of Joyful Long International Limited. The liquidators may be reached at: John Robert Lees Mat Ng Henley Building, 20/F 5 Queen's Road Central, Hong Kong K.Y. CATERING: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on December 30, 2009, to wind up the operations of K.Y. Catering (Holdings) Limited. The official receiver is E T O'Connell. KINGSWAY CORPORATION: Court Enters Wind-Up Order ------------------------------------------------ The High Court of Hong Kong entered an order on December 23, 2009, to wind up the operations of Kingsway Corporation Limited. The official receiver is E T O'Connell. KONG HING: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on December 23, 2009, to wind up the operations of Kong Hing Transportation Company Limited. The official receiver is E T O'Connell. KWONG YICK: Creditors and Contributories to Meet on Feb. 5 ---------------------------------------------------------- Creditors and contributories of Kwong Yick Metals Limited will hold their first meeting on February 5, 2010, at 10:30 a.m., and 10:0 a.m., respectively at Room 1601-1602, 16/F, CCIF Corporate Advisory Services Limited, One Hysan Avenue, Causeway Bay, in Hong Kong. At the meeting, James Wardell, the company's provisional liquidator, will give a report on the company's wind-up proceedings and property disposal. LABOUR BUILDINGS: Court to Hear Wind-Up Petition on February 24 --------------------------------------------------------------- A petition to wind up the operations of Labour Buildings Limited will be heard before the High Court of Hong Kong on February 24, 2010, at 9:30 a.m. LASALLE TRADE: Creditors' Proofs of Debt Due February 8 ------------------------------------------------------- LaSalle Trade Services Limited, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by February 8, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 28, 2009. The company's liquidators are: Robin Harris Ng Kit Ying Zelinda The Center, 31/F 99 Queen's Road Central, Hong Kong LEE DUNG: Court to Hear Wind-Up Petition on February 3 ------------------------------------------------------ A petition to wind up the operations of Lee Dung Food and Beverage Company Limited will be heard before the High Court of Hong Kong on February 3, 2010, at 9:30 a.m. LEGEND PROFIT: Court to Hear Wind-Up Petition on February 24 ------------------------------------------------------------ A petition to wind up the operations of Legend Profit Limited will be heard before the High Court of Hong Kong on February 24, 2010, at 9:30 a.m. The Petitioner's Solicitors are: Tsang, Chan & Wong Wing On House, 16/F No. 71 Des Voeux Road Central Hong Kong LEVA (HK): Members' Final General Meeting Set for February 10 ------------------------------------------------------------- Members of Leva (Hong Kong) Limited, which is in members' voluntary liquidation, will hold their final general meeting on February 10, 2010, at 10:00 a.m., at 4304, 43/F, China Resources Building, 26 Harbour Road, Wanchai, in Hong Kong. At the meeting, Heng Poi Cher, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. LIK PANG: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on December 30, 2009, to wind up the operations of Lik Pang Industrial Company Limited. The official receiver is E T O'Connell. LONGSHAFT LIMITED: Placed Under Voluntary Wind-Up Proceedings ------------------------------------------------------------- At an extraordinary general meeting held on December 29, 2009, creditors of Longshaft Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Messrs. Peter Raymond Griffiths Flat C, 10/F, Block C and D Medallion Heights 45 Conduit Road Hong Kong LUCKY TECH: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on December 23, 2009, to wind up the operations of Lucky Tech International Limited. The official receiver is E T O'Connell. ========= I N D I A ========= D A JHAVERI: CRISIL Reaffirms 'P4+' Ratings on Various Bank Debts ----------------------------------------------------------------- CRISIL's rating on the bank facility of D A Jhaveri continues to reflect the firm's low net worth and the limitations arising from the partnership nature of the business. These rating weaknesses are partially offset by the firm's improving business and financial risk profiles, as the majority of the firm's sales are on cash-on-delivery (COD) basis, and its healthy relationships with customers and suppliers, backed by the experience of its promoters in the diamond business. Facilities Ratings ---------- ------- INR250 Million Pre-Shipment/ P4+ (Reaffirmed) Post-Shipment Facility INR100 Million Proposed Short P4+ (Reaffirmed) Term Bank Loan Facility For arriving at its rating, CRISIL has combined the business and financial risk profiles of D A Jhaveri and Alpa Diamond, together referred to as the D A Jhaveri group. This is because of the operational and financial linkages between the two entities, and their common management. D A Jhaveri, formed by Mr. Dilip Jhaveri in 1974 as a proprietorship concern, was converted into a partnership firm in 1982, with Mr. Dilip Jhaveri and his brother Mr. Sanath Jhaveri as equal partners. At present, Mr. Dilip Jhaveri's family has a 70 per cent stake, while Mr. Sanath Jhaveri's family holds the remainder. The firm manufactures and trades in polished diamonds; it commenced manufacturing operations in 1989. Over the years, it has built a customer base of more than 400 clients, and has an established presence in leading markets such as the US, Belgium, Israel, and Hong Kong. Alpa Diamond is a partnership concern based in Mumbai. It undertakes cutting and polishing operations for D A Jhaveri on a job-work basis. For 2008-09 (refers to financial year, from April 1 to March 31), the D A Jhaveri group reported a net profit of INR20 million on net sales of INR2.9 billion, against a net profit of INR78 million on net sales of INR2.6 billion for 2007-08. DECCAN POLYPACKS: CRISIL Assigns 'B' Rating on INR55MM Bank Debts ----------------------------------------------------------------- CRISIL has assigned its ratings of 'B/Stable/P4' to Deccan Polypacks Ltd's bank facilities. Facilities Ratings ---------- ------- INR55.0 Million Cash Credit Limit B/Stable (Assigned) INR45.0 Million Letter of Credit P4 (Assigned) INR2.0 Million Bank Guarantee P4 (Assigned) The ratings reflect DPL's weak financial risk profile, marked by weak debt protection measures and exposure to risks relating to intense competition, and small scale of operations, in the woven sacks industry. These rating weaknesses are partially offset by DPL's moderate business risk profile, marked by long track record in the industry. Outlook: Stable CRISIL expects DPL to maintain its business risk profile backed by long-term track record. However, its financial risk profile is expected to remain weak due to high gearing and weak debt protection measures. The outlook may be revised to 'Positive' if the company's financial risk profile improves substantially, supported by capital infusion and improvement in topline and operating margins. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile deteriorates on account of large, debt-funded capex and further deterioration in margin. About Deccan Polypacks Incorporated in 1984 as private limited company, DPL converted into public limited company in 1985. It manufactures woven sacks. The total capacity of the company's manufacturing unit at Medak (Andhra Pradesh) is 3243 tonnes per annum. DPL reported a profit after tax (PAT) of INR2.6 million on net sales of INR281.9 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR3.9 million on net sales of INR280.3 million for 2007-08. ECOHOMES CONSTRUCTIONS: CRISIL Rates INR132.5MM Term Loan at 'BB' ----------------------------------------------------------------- CRISIL has assigned its rating of 'BB/Negative' to Ecohomes Constructions Pvt Ltd's term loan facility. Facilities Ratings ---------- ------- INR132.5 Million Term Loan BB/Negative (Assigned) The rating reflects ECPL's exposure to risks relating to inadequate coverage for loan against securitization of lease rentals against its 'Ecolite' property, to geographical concentration in revenue profile, to high degree of lending to group companies for land purchases, and to cyclicality in the real estate sector. These rating weaknesses are partially offset by the benefits that ECPL derives from the absence of significant debt-funded project plans, and healthy saleability of its ongoing projects. Outlook: Negative CRISIL expects ECPL's financial risk profile to deteriorate over the medium term primarily on account of a weak capital structure and slowdown in the real estate sector. The outlook may be revised to 'Stable' if the company generates more than expected cash accruals from ongoing projects, and substantial advances for future projects, leading to improvement in its capital structure. Conversely, the ratings may be downgraded if ECPL takes on large debt for future projects, or if the company reports lower than expected off-take for current and future projects. About Ecohomes Constructions Incorporated in 2002 by the Monga and Patel families, ECPL (formerly, Dynamind Construction Pvt Ltd) ECPL undertakes development of mid-range residential and commercial properties. Over the last nine years, the company has executed six residential and three commercial projects in and around the Andheri region of Western Mumbai. ECPL reported a profit after tax (PAT) of INR51.7 million on net sales of INR180.5 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR68.4 million on net sales of INR145.3 million for 2007-08. EVEREADY SPINNING: CRISIL Puts 'BB+' Ratings on Various Bank Debts ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Eveready Spinning Mills Pvt Ltd, an Eveready group entity, continue to reflect the group's below-average financial risk profile marked by high gearing, its exposure to fluctuations in raw material prices, and its large working capital requirements. These weaknesses are partially offset by the group's established market position supported by longstanding relationships with customers. Facilities Ratings ---------- ------- INR171.00 Million Proposed Long BB+/Stable (Assigned) Term Bank Loan facility INR72.30 Million Long-Term Loan BB+/Stable (Reaffirmed) INR110.00 Million Cash Credit BB+/Stable (Reaffirmed) INR10.00 Million Bank Guarantee P4+ (Reclassified from 'P4') For arriving at its ratings, CRISIL has combined the financials of ESMPL and Mani Spinning Mills Pvt Ltd. This is because both ESMPL and Mani Mills, together referred to as the Eveready group, are under a common management, are in the same line of business, and have operational and financial linkages, including fungible funds, with each other. Outlook: Stable CRISIL believes that the Eveready group will maintain its financial risk profile over the medium term on the back of steady accruals. The outlook may be revised to 'Positive' if the group's gearing and profitability improve significantly, resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the group undertakes a large, debt-funded capital expenditure programme, or if its revenues decline and profitability deteriorates. About the Group Eveready Mills, set up in 1998, manufactures cotton yarn of count size ranging from 30s to 40s. The group set up Fisher Spinning Mills Pvt Ltd (Fisher Mills) to manufacture yarn of low count, and Mani Mills with a capacity of 60,000 spindles and 720 rotors to manufacture hosiery yarn. Fisher Mills was merged with Mani Mills in 2006. The Eveready group reported a loss of INR34.8 million on a turnover of INR1.73 billion for 2008-09 (refers to financial year, April 1 to March 31), against INR103.1 million and INR1.78 billion, respectively, for 2007-08. EVERGREEN VENEERS: CRISIL Puts 'BB-' Rating on INR25MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its ratings of 'BB-/Stable/P4+' to the various bank facilities of Evergreen Veneers Pvt Ltd. Facilities Ratings ---------- ------- INR25.00 Million Cash Credit BB-/Stable (Assigned) INR150.00 Million Letter of Credit P4+ (Assigned) INR0.50 Million Bank Guarantee P4+ (Assigned) The ratings reflect EVPL's small scale of operations in the intensively-competitive plywood and veneer industry coupled with its large working capital requirements. These weaknesses are, however, partially offset by EVPL's moderate financial risk profile, and the benefits it derives from the experience of its promoters. Outlook: Stable CRISIL believes that EVPL will maintain a stable credit risk profile over the medium term, on the back of its established presence in the plywood and veneer business. The outlook may be revised to 'Positive' if the company's financial risk profile improves significantly, supported by a sustainable scale-up in operations and margins. Conversely, the outlook may be revised to 'Negative' if the company undertakes large debt-funded capital expenditure. About Evergreen Veneers EVPL, set up in 1992 by Mr. Lakshmichand Garg, was acquired by Mr. Ashok Kumar Agarwal and Mr. Vijay Gupta in 2001. Based at Vishakhapatnam, the company manufactures veneers and plywood. The entire timber requirement is met by imports from Malaysia, Myanmar, and New Zealand. The company sells veneer to plywood manufacturers in South India. It sells plywood under its own brands, Du'k Ply, Monteck Ply, Imax Ply, Mount Ply. EVPL reported a profit after tax (PAT) of INR2.4 million on net sales of INR386.9 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR2.1 million on net sales of INR377.0 million for 2007-08. GARG INDUSTRIES: CRISIL Assigns 'BB' Rating on INR75.9MM Term Loan ------------------------------------------------------------------ CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank facilities of Garg Industries Ltd. Facilities Ratings ---------- ------- INR125 Million Cash Credit BB/Stable (Assigned) INR75.9 Million Term Loans BB/Stable (Assigned) INR55 Million Letter of Credit P4+ (Assigned) The ratings reflect GIL's diverse product mix, improving operating efficiency, and its promoters' industry experience. These rating strengths are partially offset by GIL's small scale of operations, exposure to intense competition, the vulnerability of its operating margin to raw material price volatility, and its average financial risk profile marked by low net worth. Outlook: Stable CRISIL believes that GIL will continue to benefit from its product diversity, established local market position, and improving operating efficiency. However, the company will remain highly leveraged over the medium term because of its large working capital borrowings and relatively low net cash accruals. The outlook may be revised to 'Negative' if GIL's gearing deteriorates, or if its operating profitability is below expectation. Conversely, the outlook may be revised to 'Positive' if the company reports higher-than-expected cash accruals on a sustained basis, or in case of fresh equity infusion into the company, leading to improvement in its financial risk profile. About Garg Industries Incorporated in 1991 by Mr. Balraj Garg, GIL is engaged in the production of wire rods, squares, Thermo-mechanical treatment (TMT) bars, steel ingots, and rounds. The company has two divisions: induction furnace and hot-rolling mill. The induction- furnace division has a total capacity of 6 tonnes per hour. The rolling mill has an installed capacity of 200 tonnes per day. For 2008-09 (refers to financial year, April 1 to March 31), GIL reported a profit after tax of INR4.2 million (INR15.1 million for 2007-08) on net sales of INR787 million (INR676 million). GOLDEN JUBILEE: ICRA Assigns 'LBB+' Rating on INR3.5BB LT Loans --------------------------------------------------------------- ICRA has assigned an 'LBB+' rating to the INR3,500 million long term loans of Golden Jubilee Hotels Limited. The outlook on the rating is stable. ICRA has also assigned an A4+ rating to the INR350 million non-fund based limits of the company. While the ratings reflect the strength and experience of the promoters and the lead developer-headed by Mr. LN Sharma in the field of hospitality, the project risk (timely and cost effective implementation of the project) and the market risk (the large expected addition to room inventory in the 5-star/Deluxe Hyderabad market) are issues of concern. The project also is yet to obtain a pending approval from the municipality which is expected shortly, as the project is a Public Private Project (PPP) and all clearances are covered under a single window clearance mechanism. The management tie-up with EIH Limited for operating the two properties under the established Trident and Oberoi brands is a source of comfort to the project. Additionally, the project is nearing financial closure having completed debt tie-up and significant equity infusion. The ratings also factor in the inherent cyclicality of the hotel industry. JCO GAS: CRISIL Downgrades Rating on INR350MM Term Loan to 'B-' --------------------------------------------------------------- CRISIL has downgraded its rating on JCO Gas Pipes Ltd's bank loan facilities to 'B-/Negative' from 'BB+/Positive'. Facilities Ratings ---------- ------- INR300.0 Million Cash Credit B-/Negative (Downgraded from BB+/Positive) INR350.0 Million Term Loan B-/Negative (Downgraded from BB+/Positive) The downgrade reflects JCO's inability to scale up the production as expected earlier, and consequent large losses expected to be incurred in its first year of operations. The downgrade also reflects CRISIL's belief that JCO's debt servicing ability, which has been adversely affected because of the losses, will remain constrained unless the promoters extend funding support or the company's loans are refinanced. CRISIL's previous rating had assumed timely completion of the project and subsequent scaling up of production. While the company completed its project in time, it could not scale up its production as expected, due to significant delays in product registration with the Bureau of Indian Standards (BIS) and in obtaining of approval from various Jal boards, who are the end- users of JCO's products. Significant losses expected to be incurred in 2009-10 (refers to financial year, April 1 to March 31) compared with CRISIL's earlier expectation have adversely impacted the company's ability to service debt on time resulting in stretched liquidity. Low scale of operations and the resultant losses are expected to result in debt service coverage ratio (DSCR) of less than 1 time for 2009-10. This is against CRISIL's earlier expectation of a DSCR of more than 1 time. On account of expected low DSCR during the initial years, JCO may face difficulty in meeting its debt obligations in this period without the additional support from its promoters or refinancing of its loans. The ratings reflect JCO's weak financial risk profile marked by weak liquidity, and small scale of operations and limited pricing power vis-�-vis larger players in the helical submerged arc-welded (HSAW) pipe manufacturing business. These rating weaknesses are partially offset by the benefits JCO is expected to derive from the strong growth prospects in the submerged arc-welded (SAW) pipe industry. For arriving at its ratings, CRISIL has treated the preference shares issued to the promoters (DP Jindal group) neither as debt nor as equity due to the bank loan agreement stipulation that these shares cannot be redeemed over the next 12 years, before the term debt is wholly repaid; furthermore, the management has stated that the dividend on these shares will not be paid until JCO has sufficient funds to repay its term debt installment. Outlook: Negative CRISIL believes that JCO's financial risk profile and liquidity will remain weak over the near to medium term due to the negative accruals expected in the initial year of operation. JCO's debt repayment ability in the month of March 2010, when the company is to pay its quarterly debt obligation of INR10.4 million, will be constrained unless promoters infuse funds or the debt repayment is rescheduled or refinanced. The rating will be downgraded in case of a delay in the repayment of term loan installments. Conversely, the outlook may be revised to 'Stable' if the company establishes a track record of increased cash flows from the project, thereby easing the pressure on liquidity. About JCO Gas JCO, a 50-50 joint venture between the DP Jindal group and the Chokhani group, was formed as part of the DP Jindal group's entry into the helical submerged arc-welded (HSAW) pipe manufacturing segment. The company has set up a 50,000 tonnes per annum (tpa) HSAW pipe facility in Chhindwara (Madhya Pradesh). The commercial production started from April 2009. The company currently caters to the domestic water transportation segment. HYT ENGINEERING: CRISIL Places 'C' Ratings on INR101.6MM Term Loan ------------------------------------------------------------------ CRISIL has assigned its ratings of 'C/P4' to the bank facilities of HYT Engineering Co Pvt Ltd, part of the HYT Group. Facilities Ratings ---------- ------- INR200 Million Cash Credit C (Assigned) INR101.6 Million Term Loan C (Assigned) INR15 Million Letter of Credit P4 (Assigned) INR480 Million Bank Guarantee P4 (Assigned) The ratings reflect HECPL's stretched liquidity with instance of delay by group companies in meeting term loan obligations. The ratings also reflect HYT group's exposure to risks relating to the ongoing investigation of corruption charges against the group, the group's small scale of operations, and high customer concentration in revenue profile. The impact of these weaknesses is mitigated by the benefits the group derives from the expected improvement in its financial risk profile because of private equity investment, and its promoter's extensive experience and established position in the special purpose railway machines segment. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of HECPL, HYT Machines Pvt Ltd and HYT Innovative Projects Pvt Ltd, collectively referred to, herein, as the HYT group. This is because HECPL, HMPL, and HIPPL are under the same management and have made intra-group investments. After the completion of private equity investment in HIPPL, HECPL and HMPL will collectively own a 27.3-per cent stake in HIPPL. Furthermore, HCEPL and HMPL are in the same line of business, as both companies manufacture machines for Indian Railways and have significant inter-company transactions. Moreover, these entities provide funding support to each other in the form of unsecured loans. All the entities have also provided cross-corporate guarantee for each other's bank facilities in the past. About the Group HECPL and HMPL manufacture special-purpose machines used to manufacture and maintain wheel and axle assemblies in railway locomotives, wagons, and coaches. The two companies, together, have six manufacturing units in Pune (Maharashtra). HIPPL manufactures precision tubes used in a wide range of defence projects such as missiles and nuclear reactors. The group's promoter, Mr. Bhojraj Hemraj Teli, has decided to sell a 50-per cent stake in HIPPL to a private equity fund, Cogent Global, for a total investment of INR250 million in 2009-10 (refers to financial year, April 1 to March 31). The HYT group reported a profit after tax (PAT) of INR29 million on net sales of INR505 million for 2007-08, as against a PAT of INR15 million on net sales of INR311 million for 2006-07. MANI SPINNING: CRISIL Reaffirms 'BB+' Rating on Cash Credit ----------------------------------------------------------- CRISIL's ratings on the bank facilities of Mani Spinning Mills Pvt Ltd, an Eveready group entity, continue to reflect the group's below-average financial risk profile marked by high gearing, its exposure to fluctuations in raw material prices, and its large working capital requirements. These weaknesses are partially offset by the group's established market position supported by longstanding relationships with customers. Facilities Ratings ---------- ------- INR56.00 Million Proposed Long BB+/Stable (Assigned) Term Bank Loan Facility INR1063.30 Million Long-Term Loan BB+/Stable (Reaffirmed) INR550.00 Million Cash Credit BB+/Stable (Reaffirmed) INR20.00 Million Bank Guarantee P4+ (Reaffirmed) For arriving at its ratings, CRISIL has combined the financials of MSMPL and Eveready Spinning Mills Pvt Ltd. This is because both MSMPL and Eveready Mills, together referred to as the Eveready group, are under a common management, are in the same line of business, and have operational and financial linkages, including fungible funds, with each other. Outlook: Stable CRISIL believes that the Eveready group will maintain its financial risk profile over the medium term on the back of steady accruals. The outlook may be revised to 'Positive' if the group's gearing and profitability improve significantly, resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the group undertakes a large, debt-funded capital expenditure programme, or if its revenues decline and profitability deteriorates. About the Group Eveready Mills, set up in 1998, manufactures cotton yarn of count size ranging from 30s to 40s. The group set up Fisher Spinning Mills Pvt Ltd to manufacture yarn of low count, and MSMPL with a capacity of 60,000 spindles and 720 rotors to manufacture hosiery yarn. Fisher Mills was merged with MSMPL in 2006. The Eveready group reported a loss of INR34.8 million on a turnover of INR1.73 billion for 2008-09 (refers to financial year, April 1 to March 31), against INR103.1 million and INR1.78 billion, respectively, for 2007-08. SUNSTAR PRECISION: ICRA Places 'LB' Rating on INR309MM Bank Debts ----------------------------------------------------------------- ICRA has assigned long term rating of 'LB' to the term loans of INR309 million and fund based limits of INR50 million of Sunstar Precision Forge Limited. ICRA has also assigned short term rating of A4 to the company's non-fund based facilities of INR5 million. The assigned ratings take into account the weak operating performance of the company during FY08 and FY09, weak financial profile due to accumulated losses & stretched liquidity position and high working capital intensity. The rating also factors in the continued financial support from promoters in the form of equity/unsecured loans and the improving outlook for global as well as domestic auto market. Sunstar Precision Forge Limited has been promoted by three families i.e. Gargs, Guptas and Goels. The company is involved in forging and machining of auto components for Indian as well as international players. The manufacturing facility is located in Greater Noida and has an area of around 80,000 sq. meters. Gargs and Goels are partners in manufacturing of katha for the last 12-13 years. This business is carried through 2 private companies namely, Shiva Katha Pvt Ltd.and Swastik Katha Pvt Ltd. Both o.10, 36th milestone Delhi-Rothak Road, District Rothak,Haryana. In addition to this, Garg family is engaged in wholesale trading of dry fruits, Kirana items, betel nut etc. This business is carried from Tilak Bazar, Khaari Baoli, Delhi office. They are engaged in this business for the last 30-40 years. Goels are also engaged in wholesale and retail trading of Iron and Steel and manufacturing of agricultural Implements. Both these business are carried at Sampla, Distt.Rothak, Haryana. Guptas are related to Gargs and are in forging business for the last 30 years. Mr.Sadhu Ram Gupta,a Director on our board is a Director of Sadhu Forging Limited, Faridabd for the last 30 years. Mr.Vinay Kumar Gupta has worked as Executive Director in Sadhu Forging Ltd. for 6 years. The Gupta family has exited from SPFL since February 2008 and Mr. Vijay Kumar Gupta & Mr.Sadhu Ram Gupta have ceased as Directors of the company. Recent Results The company has reported a net loss of around INR94.4 million on the operating income of around INR144.9 million during FY09. VAYHAN COFFEE: ICRA Assigns 'LB' Rating on INR510MM Term Loans -------------------------------------------------------------- ICRA has assigned an 'LB' rating to the INR510.0 million term loans and INR2.5 million non-fund based facilities of Vayhan Coffee Limited. ICRA has also assigned an A4 rating to INR120 million fund based limits and INR25 million non-fund based limits of VCL. The assigned ratings are constrained by VCL's limited operating history, its small scale of operations and its exposure to currency fluctuations and volatility in coffee bean prices. The rating is also constrained by the company's dependence on single product -- spray dried instant coffee, a segment that is characterized by high competitive intensity and lower contribution margin relative to freeze dried instant coffee. ICRA also notes that VCL's operations are still to stabilize as commercial production started towards the end of October 2008. In addition, there was a delay in sanction of working capacity limits. Thus, the company has been facing liquidity problems as evident from delays in payments of installments for the term loans taken for setting up the plant. The ratings, however, draws comfort from the extensive exposure of VCL's management to coffee industry and the good initial response that VCL's product has got from the market as reflected in an adequate order book position from international customers in the private labelling and trading house segments. ICRA notes that within ten months of the start of commercial production, VCL was able to attain over 80% capacity utilization in August 2009, and was able to market more than 60% of its output in first five months of 2009-10 to private labellers who offer higher realizations. About Vayhan Coffee Vayhan Coffee Limited was incorporated on December 22, 2005. The promoters of the company are D.R.S. Paramananda Raju, D. Rama Raju, K.V.K. Raju and H.N.Tarafdar. VCL manufactures and exports spray dried and agglomerated instant coffee to various countries in Asia, Europe and Africa. The company has setup an export oriented Instant Coffee plant at West Godavari District, Andhra Pradesh (AP) with an installed capacity of 3600 tons per annum (TPA). ========= J A P A N ========= BEST DENKI: To Wind-Up Sakuraya Unit Next Month Due to Losses ------------------------------------------------------------- Best Denki Co. Ltd. said Tuesday that Sakuraya Co., its consumer electronics retail unit, will pull the plug on its business by the end of the current business year to February 28, Japan Today reports. Sakuraya will subsequently be liquidated as it is unlikely to turn around its money-losing operations, the report says. According to the report, Best Denki also raised its group net loss projection for the current business year to JPY30.18 billion from JPY1.37 billion as it anticipates an extraordinary loss of around JPY22 billion partly in connection with deterioration in earnings at Sakuraya. Best Denki Co., Ltd. (TYO:8175) is a Japan-based company mainly engaged in the sale of home electric appliances and information communication equipment. It has five business segments. The Electrical Home Appliance Retailing segment is involved in the sale of electrical home appliances and information communications equipment, as well as the sale of broadband-related information technology products. The Electrical Home Appliance Wholesaling segment is engaged in the sale of products to its subsidiaries, associated companies and franchised stores. The Credit segment is involved in the consumer loan business. The Service segment is engaged in the delivery of goods and the provision of post-sale services, such as repair. The Others segment is involved in the construction, expansion and renovation of stores and houses, the sale of land and buildings, as well as the leasing, amusement, convenience store, printing and recruitment service businesses. * * * As reported in the Troubled Company Reporter-Asia Pacific on September 11, 2009, Japan Credit Rating Agency, Ltd. affirmed the 'BB+' rating on Best Denki Co., Ltd.'s senior debts and bonds, revising the rating outlook from Stable to Negative. FORD MOTOR: Japan Unit to Recall 13,729 Units of Explorer SUV ------------------------------------------------------------- Japan Today reports that Ford Motor Japan Ltd. will recall 13,729 units of its Explorer sport utility vehicles in Japan due to a defect in the speed control deactivation system. The Ministry of Land, Infrastructure, Transport and Tourism said the vehicles subject to the recall were manufactured between November 1994 and August 2002, the report relates. According to the report, Ford said an improper structure in the deactivation switch of the automated cruise control, which enables drivers to drive cars at a certain speed without stepping down on the pedal, could cause a fire as brake fluid may leak and produce heat. The ministry said that about 4.5 million units of the car have been subject to recall in the United States, the report adds. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company. At September 30, 2009, the Company had US$203.106 billion in total assets against US$210.376 billion in total liabilities. On March 4, 2009, Ford deferred future interest payments on its 6.50% Junior Subordinated Convertible Debentures due January 15, 2032, beginning with the April 15, 2009 quarterly interest payment. * * * As reported by the Troubled Company Reporter on November 4, 2009, Moody's Investors Service upgraded the senior unsecured rating of Ford Motor Credit Company LLC to B3 from Caa1. This follows Moody's upgrade of Ford Motor Company's corporate family rating to B3 from Caa1, with a stable outlook. Ford Credit's long-term ratings remain on review for further possible upgrade. On Nov. 3, 2009, S&P raised the corporate credit ratings on Ford Motor Co. and Ford Motor Credit Co. LLC to 'B-' from 'CCC+'. Ford Motor Co. carries a long-term issuer default rating of 'CCC', with a positive outlook, from Fitch Ratings. JAPAN AIRLINES: Chapter 11-Type Restructuring Needed for Tie Up --------------------------------------------------------------- Law360 reports that Japan Airlines Corp. may have to complete a Chapter 11-type restructuring before it can enter into a tie-up with American Airlines Inc. or Delta Air Lines Inc., both of which have been trying for months to negotiate a deal with the carrier. 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 December 4, 2009, Standard & Poor's Ratings Services lowered to 'SD' (selective default) from 'CC' its long-term corporate credit ratings on Japan Airlines Corp. and Japan Airlines International Co. Ltd., its wholly owned subsidiary, and removed the ratings from CreditWatch. At the same time, Standard & Poor's maintained its senior unsecured debt ratings on both companies at 'CCC' and kept the ratings on CreditWatch with developing implications. On Sept. 18, 2009, S&P placed the corporate credit and senior unsecured debt ratings on both companies on CreditWatch with negative implications and maintained the CreditWatch status on Oct. 16, 2009, and Nov. 4, 2009. On Nov. 13, 2009, S&P maintained its CreditWatch status on the corporate ratings on both companies and revised to developing its CreditWatch status on the senior unsecured debt ratings. The TCR-AP reported on Nov. 3, 2009, that Moody's Investors Service downgraded the long-term debt rating and issuer rating of Japan Airlines International Co., Ltd. to Caa1 from B1, and will continue to review both ratings for further possible downgrade. JAPAN AIRLINES: Looming Bankruptcy to Affect 10,000 Firms --------------------------------------------------------- Aki Ito at Bloomberg News reports Tokyo Shoko Research Ltd. said Wednesday that Japan Airlines Corp.'s bankruptcy would have a "nationwide" impact. The research agency estimated more than 10,000 companies have business tied to Asia's largest carrier, the report says. Citing Tokyo Shoko's report released yesterday, Bloomberg discloses that some 2,910 domestic firms cite a company within Japan Air's group as one of their five biggest clients in terms of sales. Those firms that do business with JAL also transact with 10,424 companies, the research organization said. According to Bloomberg, Tokyo Shoko said a reduction in JAL's routes may also depress sales for businesses that cater to the passengers at regional airports. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 12, 2010, Kyodo News reports that Japan Airlines is expected to cut 15,600 jobs, or about 30% of its group workforce, by the business year through March 2013 under a rehabilitation plan being compiled by state-backed Enterprise Turnaround Initiative Corp. of Japan. Sources told Kyodo that the layoffs, along with cuts in benefits and wages, will be carried out together with the sale of its subsidiaries including JAL Hotels Co. JAL's workforce will be trimmed to about 36,000 employees by fiscal 2012, Kyodo related. According to Kyodo, the ETIC plans to decide on its bailout package for JAL as early as January 19, at the same time the airline is expected to file for court-backed bankruptcy proceedings. The Wall Street Journal's Mariko Sanchanta reports JAL's main bank creditors, including Mizuho Corporate Bank, Bank of Tokyo- Mitsubishi UFJ and Sumitomo Mitsui Banking Corp., had been the most vocal opponents to a court-led rehabilitation plan as they feared it would wipe out most of their loans outstanding to JAL. People familiar with the situation have told the Journal the bank creditors now believe that such a plan is inevitable. The Journal reports that under the proposal drafted by the ETIC, loan waivers by the banks, including a debt-for-equity swap, would total more than JPY300 billion. According to the Journal, Mizuho Corporate Bank, which is part of Mizuho Financial Group Inc., and Bank of Tokyo-Mitsubishi UFJ, part of Mitsubishi UFJ Financial Group Inc., each have about JPY50 billion in loans outstanding to JAL. Sumitomo Mitsui, a unit of Sumitomo Mitsui Financial Group Inc., has about JPY30 billion in loans outstanding. About JAL 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 December 4, 2009, Standard & Poor's Ratings Services lowered to 'SD' (selective default) from 'CC' its long-term corporate credit ratings on Japan Airlines Corp. and Japan Airlines International Co. Ltd., its wholly owned subsidiary, and removed the ratings from CreditWatch. At the same time, Standard & Poor's maintained its senior unsecured debt ratings on both companies at 'CCC' and kept the ratings on CreditWatch with developing implications. On Sept. 18, 2009, S&P placed the corporate credit and senior unsecured debt ratings on both companies on CreditWatch with negative implications and maintained the CreditWatch status on Oct. 16, 2009, and Nov. 4, 2009. On Nov. 13, 2009, S&P maintained its CreditWatch status on the corporate ratings on both companies and revised to developing its CreditWatch status on the senior unsecured debt ratings. The TCR-AP reported on Nov. 3, 2009, that Moody's Investors Service downgraded the long-term debt rating and issuer rating of Japan Airlines International Co., Ltd. to Caa1 from B1, and will continue to review both ratings for further possible downgrade. JAPAN AIRLINES: Qantas May Keep Codeshare Agreement --------------------------------------------------- Robert Fenner at Bloomberg News reports that Qantas Airways Ltd. may keep codeshare arrangements with Japan Airlines Corp. even if the carrier defects to the rival SkyTeam airline alliance. The report, citing analysts at Macquarie Group Ltd. by Russell Shaw, relates that Qantas shares common flight numbers with airlines such as Air France-KLM, a member of SkyTeam, and similar arrangements may be kept if Tokyo-based Japan Air leaves their Oneworld coalition. "Qantas currently enjoys a longstanding codeshare arrangement with Japan Airlines, and would be eager to maintain this regardless of JAL's future allegiance," Bloomberg cited Mr. Shaw in its Jan. 12 client notes. Qantas is still likely to maintain the status quo, he wrote, affirming his "outperform" rating on the Sydney-based airline, according to Bloomberg. Macquarie said flights between Japan and Australia represent about 6% of Qantas' available capacity and the route is "material" to the company, Bloomberg notes. According to the report, Mr. Shaw said any defection to SkyTeam would be a "major dent" in Oneworld, leaving it the smallest of the three global associations that also includes Star Alliance. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 13, 2010, American Airlines, along with fellow oneworld Alliance founding members British Airways, Qantas Airways and Cathay Pacific Airways, outlined US$2 billion in commercial benefits to Japan Airlines over three years. The enhanced oneworld proposal would provide JAL the best path to future success while minimizing risk for the Japanese government and taxpayers and maximizing the benefits for air travelers. The group said that the enhanced, broad-based commercial offer would serve as a key component of a comprehensive, government-led restructuring plan for JAL. As part of the proposal, JAL would remain a key partner in oneworld, a collection of 11 of the most respected brands in the airline industry. The proposal also includes a pledge -- if welcomed -- to offer JAL guidance and expertise from partners that have successfully executed airline restructurings. Early in December, American's parent AMR Corp. said it could inject $1.1 billion into JAL with its partner TPG Inc., the private-equity group, and support from members of its oneworld alliance. According to the Wall Street Journal, the pledged support had previously been in the form of logistical and management help for JAL, but AMR Chief Executive Gerard Arpey hinted the partners could also provide capital. Delta and its partners in the rival SkyTeam alliance have said they may revise their proposal to inject $500 million into JAL and provide a $200 million loan and a $300 million revenue guarantee. Delta hasn't said whether other SkyTeam members would inject funds into JAL. The Journal said Richard Anderson, Delta's CEO, met with Seiji Maehara, Japan's Minister of Land, Infrastructure, Transport and Tourism, early in December to explain his company's proposal in more detail. The oneworld alliance includes British Airways, Qantas, Cathay Pacific, Iberia, LAN, Finnair and Mexicana. About AMR Corp. Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, including Brazil, Europe and Asia. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. * * * AMR carries a 'CCC' issuer default rating from Fitch Ratings. It has 'Caa1' corporate family and probability of default ratings from Moody's. It has 'B-' corporate credit rating, on watch negative, from Standard & Poor's. 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. Northwest and 12 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). On May 21, 2007, the Court confirmed the Northwest Debtors' amended plan. That amended plan took effect May 31, 2007. Delta and 18 affiliates filed for Chapter 11 protection on September 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represented the Delta Debtors in their restructuring efforts. On April 25, 2007, the Court confirmed the Delta Debtors' plan. That plan became effective on April 30, 2007. (Bankruptcy Creditors Service Inc. publishes Delta Air Lines Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000). * * * Delta Air Lines has $44,480,000,000 in assets against total debts of $43,500,000,000 in debts as of June 30, 2009. Delta Air Lines and Northwest Airlines carry a 'B/Negative/--' corporate ratings from Standard & Poor's. They also continue to carry 'B2' corporate family ratings from Moody's. About JAL 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 December 4, 2009, Standard & Poor's Ratings Services lowered to 'SD' (selective default) from 'CC' its long-term corporate credit ratings on Japan Airlines Corp. and Japan Airlines International Co. Ltd., its wholly owned subsidiary, and removed the ratings from CreditWatch. At the same time, Standard & Poor's maintained its senior unsecured debt ratings on both companies at 'CCC' and kept the ratings on CreditWatch with developing implications. On Sept. 18, 2009, S&P placed the corporate credit and senior unsecured debt ratings on both companies on CreditWatch with negative implications and maintained the CreditWatch status on Oct. 16, 2009, and Nov. 4, 2009. On Nov. 13, 2009, S&P maintained its CreditWatch status on the corporate ratings on both companies and revised to developing its CreditWatch status on the senior unsecured debt ratings. The TCR-AP reported on Nov. 3, 2009, that Moody's Investors Service downgraded the long-term debt rating and issuer rating of Japan Airlines International Co., Ltd. to Caa1 from B1, and will continue to review both ratings for further possible downgrade. JAPAN AIRLINES: Government Taps Inamori to Lead JAL's Revival ------------------------------------------------------------- Jonathan Soble at The Financial Times reports that the Japanese government has asked Kazuo Inamori, founder of the Kyocera Corp., to lead Japan Airlines Corp. out of its looming bankruptcy. The FT relates that Japan Prime Minister Yukio Hatoyama on Wednesday asked Mr. Inamori to take over as JAL chief executive after current boss Haruka Nishimatsu steps down possibly next week, when JAL is expected to file a formal request for court protection from holders of its more than JPY1.4 trillion in liabilities. Mr. Inamori, who also founded mobile phone operator KDDI Corp., accepted the request, adding that he would work without pay and planned to choose a chief operating officer from within JAL's management, the FT says. Mr. Inamori told reporters in Tokyo yesterday that "I'm a total novice when it comes to the transportation industry," according to Bloomberg News. "I've decided to accept because the government and the turnaround body want to prevent JAL's failure by any means," he said. "The revival of Japan Airlines is deeply connected to the revival to the Japanese economy," the FT quoted Mr. Hatoyama as saying. "I have great expectations for a man whose managerial skill built Kyocera and KDDI in a single lifetime." Bloomberg discloses that Mr. Inamori, worth US$920 million, according to Forbes, founded Kyocera, a Japanese maker of solar cells and electronic devices, in 1959. Mr. Inamori also set up one of the three companies that merged in 2000 to become KDDI Corp., Japan's second-biggest wireless operator, Bloomberg relates citing a profile on the Inamori Foundation Web site. He founded a chain of management schools to teach his business philosophy and became a Buddhist priest in 1997, Bloomberg adds. The FT states that JAL's fate is now in the hands of the government and the Enterprise Turnaround Initiative Corporation, the state-backed investment fund that is finalizing a restructuring plan for the airline. The FT, citing people familiar with the matter, says it is likely to include a JPY300 billion capital injection from the fund and several hundred billion yen in loan forgiveness from JAL's banks. Delta Air Lines and American Airlines, the FT notes, have tabled rival proposals to invest in JAL to broaden their reach in Asia. According to the FT, transport minister Seiji Maehara said Tuesday that JAL's three main commercial lenders -- Mizuho Financial, Mitsubishi UFJ Financial and Sumitomo Mitsui Financial -- have broadly agreed to a restructuring that would cut JAL's debt while keeping it flying. About JAL 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 December 4, 2009, Standard & Poor's Ratings Services lowered to 'SD' (selective default) from 'CC' its long-term corporate credit ratings on Japan Airlines Corp. and Japan Airlines International Co. Ltd., its wholly owned subsidiary, and removed the ratings from CreditWatch. At the same time, Standard & Poor's maintained its senior unsecured debt ratings on both companies at 'CCC' and kept the ratings on CreditWatch with developing implications. On Sept. 18, 2009, S&P placed the corporate credit and senior unsecured debt ratings on both companies on CreditWatch with negative implications and maintained the CreditWatch status on Oct. 16, 2009, and Nov. 4, 2009. On Nov. 13, 2009, S&P maintained its CreditWatch status on the corporate ratings on both companies and revised to developing its CreditWatch status on the senior unsecured debt ratings. The TCR-AP reported on Nov. 3, 2009, that Moody's Investors Service downgraded the long-term debt rating and issuer rating of Japan Airlines International Co., Ltd. to Caa1 from B1, and will continue to review both ratings for further possible downgrade. JAPAN AIRLINES: Wins Retirees Approval for 30% Pension Cuts ----------------------------------------------------------- Lindsay Whipp and Robin Harding at The Financial Times report that Japan Airlines Corp. on Tuesday finally won the two-thirds of support it needs from its retirees to sharply cut their pensions. According to the FT, the carrier said that 67% of its existing retirees, or 5,991 out of 8,936 already retired employees, had now agreed to the requested 30% cut in pension pay-outs. The FT relates that JAL last week won approval from 91% of the 15,742 existing employees on the same pension scheme that was introduced in 1992, after the company was privatized. The scheme includes about a third of JAL's workforce, the FT notes. The agreement, the FT relates, should significantly help JAL, whose pension-related obligations account for more than a quarter of its JPY1,400 billion (US$15 billion) in interest-bearing debt. It is also seen as crucial for the loss making airline's future as well as being a key demand of bankers who have been asked to forgive several hundred billion yen in loans, the FT adds. About JAL 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 December 4, 2009, Standard & Poor's Ratings Services lowered to 'SD' (selective default) from 'CC' its long-term corporate credit ratings on Japan Airlines Corp. and Japan Airlines International Co. Ltd., its wholly owned subsidiary, and removed the ratings from CreditWatch. At the same time, Standard & Poor's maintained its senior unsecured debt ratings on both companies at 'CCC' and kept the ratings on CreditWatch with developing implications. On Sept. 18, 2009, S&P placed the corporate credit and senior unsecured debt ratings on both companies on CreditWatch with negative implications and maintained the CreditWatch status on Oct. 16, 2009, and Nov. 4, 2009. On Nov. 13, 2009, S&P maintained its CreditWatch status on the corporate ratings on both companies and revised to developing its CreditWatch status on the senior unsecured debt ratings. The TCR-AP reported on Nov. 3, 2009, that Moody's Investors Service downgraded the long-term debt rating and issuer rating of Japan Airlines International Co., Ltd. to Caa1 from B1, and will continue to review both ratings for further possible downgrade. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Credit Suisse Prefers Local Buyers for Stake ----------------------------------------------------------------- Jung-Ah Lee at Dow Jones Newswires reports that Credit Suisse Ltd. said it is appropriate to sell the stake held by the creditors of Hynix Semiconductor Inc. only to domestic investors. According to Dow Jones, Kim Kwang-joon, director of Credit Suisse's investment banking department, said once local companies show an interest in acquiring the stake by the end of this month, the creditors will choose the preferred bidder in the second quarter of this year. Dow Jones, citing an executive of the Korea Finance Corporation, relates that the potential buyer for the stake can only purchase a minimum stake of 15%. Kevin Cho at Bloomberg News, meanwhile, reports that Credit Suisse said Hynix's creditors may help finance an acquisition of their controlling stake in the company. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 27, 2009, Hynix Semiconductor Inc.'s creditors re-invited fresh bids for a major stake in the chipmaker and receive letters of intent from potential investors by January after Hyosung Corp. dropped its bid. Invitational notices for South Korean companies to submit bids went out Dec. 20. Letters of intent to buy Hynix will be accepted by Jan. 29, Kyodo News said. No local company has so far shown any interest in the offer. The stake sale, which is estimated to be worth KRW4.5 trillion is being managed by Credit Suisse Ltd., Woori Investment & Securities Co. and state-run Korea Development Bank. Jung-Ah Lee and Shin Jung-Won at Dow Jones Newswires, citing the Electronic Times, reported last week that the United Arab Emirates government has shown an interest in buying a stake in Hynix Semiconductor. A Korean government official said the UAE government showed an interest in acquiring (at least) a part of the stake, if it proves difficult to acquire the entire stake, Dow Jones related. 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 November 17, 2009, Standard & Poor's Ratings Services revised to stable from negative the outlook on its long-term corporate credit rating on Hynix Semiconductor Inc. following the recovery of the DRAM market and the company's profitability. At the same time, Standard & Poor's affirmed its 'B+' long-term corporate and 'B' senior unsecured debt ratings on Hynix. Fitch Ratings, on July 6, 2009, affirmed Hynix Semiconductor'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, Fitch downgraded the ratings for its outstanding senior unsecured debt to 'B'/'RR5' from 'B+' and removed it from RWN. KUMHO ASIANA: Fires 7 CEOs Amid Liquidity Crisis ------------------------------------------------ Kumho Asiana Group dismissed seven key executives at its affiliates Tuesday as it grappled with a liquidity crisis due to weak earnings and high financial leverage, according to Yonhap News. According to the news agency, the reshuffle saw seven out of 18 CEO-level positions at Kumho Asiana affiliates leave the group. The group said in a statement they included Oh Nam-soo, head of the group's strategic management division. Ki Ok, chief executive officer of Kumho Petrochemical Co., will replace Oh, Yonhap says. Kumho Industrial to Remain Listed Kumho Industrial, a unit of cash-strapped Kumho Asiana Group, will likely remain as a publicly traded company as the state-run Korea Development Bank and other creditors have decided to keep it listed on the local bourse, The Korea Times reports. The Times relates that Kumho Industrial's capital has completely evaporated due to the put option deal that it signed with financial investors when taking over Daewoo Engineering & Construction (E&C) in 2006 in return for investments. Based on the Korea Exchange (KRX) rules, the report notes, listed firms that have insufficient capital or those under a debt repayment program will be delisted from the market. According to the report, the creditors are planning to keep it listed in order to smoothly carry out a debt rescheduling program and minimize their losses. This can be done by forcing Kumho Industrial to convert its debt into equity, reduce its capital and implement drastic restructuring measures to bring down its debt level, the Times states. "We decided to keep Kumho Industrial listed because if it was kicked out, we would be saddled with equities and bonds of an unlisted entity, which is too risky for us. Before the company issues its fiscal 2009 business report in March, we will finalize a debt retooling scheme to resolve its capital erosion and other financial issues," an official at one of creditor banks was quoted as saying by The Korea Times. As reported in the Troubled Company Reporter-Asia Pacific on January 7, 2010, Yonhap News said creditor banks of Kumho Industrial agreed to freeze debt repayments by the builder for three months. During the period, the creditors will come up with a plan to put Kumho Industrial back on track after a due diligence is conducted on the builder. According to Yonhap, Woori Bank said Kumho Industrial will be required to carry out a self-rescue plan that includes the sale of non-core assets and cost-cutting efforts in return for the three-month debt freeze. The creditors plan to provide fresh loans to Kumho Industrial to help revive the company as soon as possible, Yonhap added. The Korea Times also reported that state-run Korea Development Bank and other financial firms have decided to freeze debts of Kumho Petrochemical and Asiana Airlines for one year to help the Kumho Asiana tide over its worsening cash flow problem. Kumho Asiana unveiled a restructuring plan on January 5 that involves raising KRW1.3 trillion (US$1.1 billion) by selling off assets, while cutting costs via a 20% reduction in executive positions and wages, Yonhap reported. According to Bloomberg data, the group's net debt was KRW2.21 trillion as of September 30, 2009 -- more than double the KRW998.5 billion it had at the end of 2005 before Kumho Asiana bought 72% of Daewoo Engineering for KRW6.43 trillion. Kumho Tire's net debt stood at KRW1.71 trillion at the end of September 2009. About Kumho Asiana Established in 1946, Kumho Asiana Group is a large South Korean conglomerate, with subsidiaries in the automotive, industry, leisure, logistic, chemical and airline fields. The group is headquartered at the Kumho Asiana Main Tower in Sinmunno 1-ga, Jongno-gu, Seoul, South Korea. =============== M A L A Y S I A =============== AKN TECHNOLOGY: Enhanced Regularization Plan Submitted ------------------------------------------------------ HwangDBS Investment Bank Berhad, on behalf of AKN Technology Berhad, disclosed that an enhanced regularization plan has been submitted to Bursa Malaysia Securities Berhad. The regularization plan now comprises: (a) existing businesses of AKN and its subsidiaries; and (b) corporate proposals, details of which are set out below: (i) share capital reduction of AKN's existing issued and paid-up share capital which entails the cancellation of MYR0.60 of the par value of AKN pursuant to Section 64 of the Companies Act, 1965; (ii) reduction of the capital redemption reserve of AKN pursuant to Section 64 of the act; (iii) reduction of the share premium account pursuant to Section 64 and Section 60(2) of the Act; (iv) set off of credit arising from the Proposed Capital Reduction, Proposed CRR Reduction and Proposed Share Premium Reduction against the accumulated losses of AKN; and (v) amendments to the Memorandum of Association of AKN. KN Technology Berhad -- http://www.akn.com.my/-- is engaged in manufacturing and trading of coating products. Its manufacturing segment comprises electroplating and provision of metal surface protection services, recycling of parts and components, manufacturing and trading of coating products. This segment offers products and services mainly in areas of electronics, consumer and healthcare industry. On July 31, 2006, the company acquired Paramount Discovery Sdn. Bhd. (PDSB). PDSB is involved in the manufacturing of polymer coating solutions for the production of powder-free gloves, particularly medical examination and surgical gloves. On May 17, 2007, the company completed the disposal of Dragon Trading (Shanghai) Company Limited and the business operation of Dragon Technology Distribution Company Limited, which comprised designing, development and engineering of application systems, and distribution of related semiconductor chips/products and application software. Poly Tower Ventures Berhad has been considered as an Affected Listed Issuer under Practice Note No. 17/2005 of the Bursa Malaysia Securities Berhad as the Company defaulted in its principal and interest payments pursuant to Practice Note No.1/2001 and is unable to provide a solvency declaration. AKN Technology Berhad has been listed as an Amended Practice Note 17 company as its auditors have expressed disclaimer opinion on the company's annual audited accounts for the financial year ended June 30, 2008. POLY TOWER: Fails to Submit Annual Financial Statement ------------------------------------------------------ Poly Tower Ventures Berhad disclosed that the Company has failed to submit its Annual Audited Financial Statements for the financial year ended August 31, 2009. The Company said it is still working with the external auditors to expedite the finalizing of the said Annual Audited Financial Statements. PTV is expected to issue and submit its outstanding Annual Audited Financial Statements for the year ended August 31, 2009, tentatively by January 31, 2010. Bursa Securities Securities Berhad on November 2, 2009, suspended the trading of the securities of Poly Tower Ventures after the Company failed to submit its quarterly report for the financial period ended May 31, 2009, to Bursa Malaysia on or before Oct. 30, 2009. Trading in the shares of Poly Tower will remain suspended. Based in Malaysia, Poly Tower Ventures Berhad (KUL:POLYTWR) -- http://www.polytowerventures.com/-- is an investment holding Company. The Company's segments include investment holding and property investment, manufacturing, and trading. The Company is engaged in manufacturing, marketing and exportation of plastic bags, films, related products, trading of plastic packaging, recycling of materials used by plastic industry, and property investment. The Company's subsidiaries include Poly Carriers Industries (Malaysia) Sdn. Bhd, Poly Packaging Products Pty. Ltd., Kinsplastic Sdn. Bhd., Kinsplastic Vietnam Co. Ltd, and Bestari Palms Sdn. Bhd. Poly Tower Ventures Berhad has been considered as an Affected Listed Issuer under Practice Note No. 17/2005 of the Bursa Malaysia Securities Berhad as the Company defaulted in its principal and interest payments pursuant to Practice Note No.1/2001 and is unable to provide a solvency declaration. ********* 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 2010. 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 ***