/raid1/www/Hosts/bankrupt/TCRAP_Public/100210.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, February 10, 2010, Vol. 13, No. 028
Headlines
A U S T R A L I A
BILL EXPRESS: Former Executives to Appear Before Public Probe
C H I N A
CHINA CONSTRUCTION: Sets Annual Quota for New Loans at CNY750 Bil.
CHINA EASTERN: Completes Merger; Seeks Strategic Investors
H O N G K O N G
GRAND BRIDGE: Ho and Man Step Down as Liquidators
GREATING MARINE: Chan and Chow Step Down as Liquidators
GREYMATCH COMPANY: Members' Final Meeting Set for March 15
HILLWAY LOGISTICS: Creditors' Proofs of Debt Due March 8
HK SHING: Creditors' Proofs of Debt Due March 8
HK TOSHIN: Members' Final Meeting Set for March 5
JETFLOW LIMITED: Ho and Man Step Down as Liquidators
KAM TAI: Members' Final General Meeting Set for March 18
KHIVA LIMITED: Members' Final Meeting Set for March 5
LADIE'S LAWN: Suen Su Chun Appointed as Liquidator
LONGWIND INTERNATIONAL: Members and Creditors to Meet on March 8
LUI HING: Members' Final Meeting Set for March 8
MEMEC ELECTRONIC: Lam and Toohey Step Down as Liquidators
NUCLEAR CONSTRUCTION: Stephen Briscoe Steps Down as Liquidator
PERFECT PARADISE: Creditors' Proofs of Debt Due March 11
I N D I A
DEVENTHIRA SPINNERS: CRISIL Puts 'BB+' Rating on INR54.2MM Loan
BOMMIDALA VENTURES: CRISIL Reaffirms 'P4+' Ratings
CCS INFOTECH: Small Net Worth Cues 'BB+' Rating on INR5MM Loan
KALPANA FASHIONS: CRISIL Assigns 'P4+' Ratings on Various Debts
KINGFISHER AIRLINES: Hires Seabury Aviation for Restructuring
KIRLOSKAR CONSTRUCTIONS: CRISIL Downgrades Ratings to 'BB'
L B KUNJIR: CRISIL Assigns 'BB+' Ratings on INR143.1MM Term Loans
LAXAI-AVANTI LIFE: Delay in Loan Repayment Cues CRISIL Junk Rating
MEGHDEV ENTERPRISES: Low Net Worth Cues CRISIL 'BB+' Ratings
MITTAL CLOTHING: CRISIL Reaffirms 'BB' Rating on INR50MM Loan
SHAREEN AUTO: CRISIL Assigns 'BB-' Rating on INR13 Mil. Term Loan
SPECTRUM ETHERS: CRISIL Puts 'BB' Rating on INR71.2MM Cash Credit
SWADESHI TEXTILE: Delay in Loan Repayment Cues CRISIL Junk Ratings
VAPI PRODUCTS: CRISIL Assigns 'BB+' Rating on INR91.7MM Term Loan
J A P A N
AIFUL CORP: ISDA to Hold Auction on March 18
ALL NIPPON: Launches Nighttime Cargo Delivery Service
AUTOBACS SEVEN: US Unit Completes Bankruptcy Procedures
JAPAN AIRLINES: Opts to Remain in Alliance with American
MOMENTUM CDO: S&P Corrects Rating on 2006-22 Notes to 'D'
K O R E A
HYNIX SEMICONDUCTOR: Korea Finance May Oppose a Block Share Sale
HYUNDAI MOTOR: Chairman Ordered to Pay KRW70BB to Hyundai
N E W Z E A L A N D
MONACO VILLAGE: Faces Liquidation Bid from Investor
SALTHOUSE MARINE: In Receivership; 51 Jobs Affected
SMART SERIES: S&P Raises Ratings on Four Classes of 2007-2 Notes
P H I L I P P I N E S
BELL TELECOM: NTC Approves Sale of Biz to Two Cassandra-CCI
T A I W A N
AU OPTRONICS: Reports January 2010 Consolidated Revenue
JIH SUN: Fitch Affirms Individual Rating at 'D'
T H A I L A N D
LEHMAN BROTHERS: Thailand Unit to Sell Resort This Month
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A U S T R A L I A
=================
BILL EXPRESS: Former Executives to Appear Before Public Probe
-------------------------------------------------------------
The Sydney Morning Herald reports that investors in collapsed
electronic payments provider Bill Express Ltd. will get a chance
to hear the company's executives give sworn testimony about what
happened to the missing funds.
According to the Herald, liquidator PPB has sought orders from the
Federal Court to force three former directors of Bill Express --
Ian Christiansen, Sean Slattery and Julian Little -- to provide
financial records and appear before a public examination to answer
questions under oath.
The report says the liquidator is seeking to get to the bottom of
a AU$250 million "black hole" in the accounts of Bill Express.
Eleven days of public examination are scheduled to start on
March 9 while questioning of executives will continue into April,
the Herald notes.
Bill Express Ltd. (ASX:BXP) -- http://www.billexpressltd.com/--
was engaged in the management and development of an electronic
distribution system for pre-paid products and services across in
excess of 14,000 locations around Australia, automated ordering,
delivery and inventory control for pre-paid services including
mobile, landline and Internet services. It also processed
payments for bills and services, including bills that are
presented for payment to its outlets across Australia. The
company had an in-store media, which is a network that promotes
Bill Express Limited's and other products at the point of sale
and in-store aisles.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
July 10, 2008, Bill Express went into administration with
AU$180 million in debts after a subsidiary of Saudi-based Al
Othman Group withdrew its proposal for the recapitalization and
restructuring of the company. The proposal was to include a
substantial capital injection and new bank guarantees combined
with a restructuring of the existing liabilities of the company.
In addition, the Board and management of the company were to be
substantially restructured.
The company then initiated talks with its financiers and major
suppliers, whom it has standstill agreements until Aug. 22,
2008. The suppliers and financiers indicated that they are not
willing to continue the standstill arrangements or otherwise
support the company's continued trading.
=========
C H I N A
=========
CHINA CONSTRUCTION: Sets Annual Quota for New Loans at CNY750 Bil.
------------------------------------------------------------------
China Construction Bank Corp. has set its annual quota for new
loans at CNY750 billion, about 20% less than last year, and set
limits for each quarter, The Wall Street Journal reports citing a
person familiar with the situation.
According to the report, the bank wants its new loans to total no
more than 30% of this year's loan ceiling in both the first
quarter and the second quarter. The Journal's source said lending
in both the third and fourth quarters should total no more than
20% of the annual limit.
The report relates that the bank set the quotas based on guidance
from the China Banking Regulatory Commission at the beginning of
this year.
For the past month, the Journal notes, China's central bank and
the China Banking Regulatory Commission have been urging lenders
to keep the pace of lending growth stable, in part due to rising
concern about inflation and asset bubbles.
About China Construction
Beijing-based China Construction Bank Corporation (HKG:0939) --
http://www.ccb.com/-- operates in three business segments:
corporate banking, personal banking and treasury business. Its
corporate banking products and services include corporate loans,
trade financing, deposit taking activities, agency services,
consulting and advisory services, cash management services,
remittance and settlement services, custody services, and
guarantee services. The Company's personal banking products and
services comprise personal loans, deposit taking activities, card
business, personal wealth management services, remittance services
and securities agency services. The Bank operates principally in
Mainland China with branches located in 31 provinces, autonomous
regions and municipalities directly under the central government,
and two subsidiaries located in the Bohai Rim. It also has bank
branch operations in Hong Kong, Singapore, Frankfurt,
Johannesburg, Tokyo and Seoul, and subsidiaries operating in
Hong Kong.
* * *
China Construction Bank continues to carry Moody's Investors
Service's 'D-' bank financial strength rating. Moody's Bank
Financial Strength Ratings represent Moody's opinion of a bank's
intrinsic safety and soundness and, as such, exclude certain
external credit risks and credit support elements that are
addressed by Moody's Bank Deposit Ratings.
CHINA EASTERN: Completes Merger; Seeks Strategic Investors
----------------------------------------------------------
China Eastern Airlines is seeking potential strategic investors
after completing a merger with former local rival Shanghai
Airlines, China Daily reports.
The Daily says the restructuring between China Eastern and
Shanghai Airlines was officially wrapped up on Monday for a total
of more than CNY150 billion. According to the report, the
consolidated new carrier has a fleet size of 331 aircraft and will
operate flights to 151 cities across the world, including New
York, Los Angeles, Paris and Frankfurt.
"The completion of the transfer of capital assets only marks the
first phase of restructuring and we expect China Eastern to
further enhance its international competitiveness through, for
example, strategic cooperation," the report quoted Meng Jianmin,
deputy chief of the State-owned Assets Supervision and
Administration Commission, as saying.
According to the Daily, Ma Xulun, general manager of China
Eastern, said the carrier has been actively looking for strategic
partners. "We welcome all strategic partners who are committed to
investing and developing the new China Eastern," Ma added.
Meanwhile, Dow Jones Newswire reports that Ma Xulun also said the
carrier is also trying to remove its domestically listed shares
from the Shanghai bourse's "special treatment" list.
Dow Jones says the bourse downgraded China Eastern's Shanghai-
listed A-shares to the list of "special-treatment" stocks in
April, after the airline reported negative net assets in the
previous year.
China Eastern reported a net loss of CNY13.93 billion to the
Shanghai bourse in 2008 on losses from futures trading of fuel
contracts. It reported a net profit of CNY1.85 billion in the
first 10 months of 2009 after a management reshuffle, cost
reductions and a capital injection.
About China Eastern
Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- provides civil
aviation services, including passenger transportation, cargo
transportation and mail delivery services. The company operates
its businesses in domestic and overseas markets. As of Dec. 31,
2008, the company operated 423 airlines, of which 332 were
domestic passenger transportation lines, one domestic cargo
transportation line, 75 international passenger transportation
lines, 14 international cargo transportation lines, 16 regional
passenger transportation lines and one regional cargo
transportation line. The company also involves in operation of
five Taiwan chartered flight passenger transportation lines and
one cargo transportation line. As of December 31, 2008, the
company operated roughly 240 aircrafts, including 214 jumbo
jets and 11 cargo jets.
* * *
China Eastern continues to carry Xinhua Far East China Ratings'
BB+ issuer credit rating with a stable outlook.
================
H O N G K O N G
================
GRAND BRIDGE: Ho and Man Step Down as Liquidators
-------------------------------------------------
Lui Wan Ho and To Chi Man stepped down as liquidators of Grand
Bridge Trading Limited on February 1, 2010.
GREATING MARINE: Chan and Chow Step Down as Liquidators
-------------------------------------------------------
Chan Shu Kin and Chow Chi Tong stepped down as liquidators of
Greating Marine Limited on February 5, 2010.
GREYMATCH COMPANY: Members' Final Meeting Set for March 15
----------------------------------------------------------
Members of Greymatch Company Limited will hold their final meeting
on March 15, 2010, at 3:00 p.m., at the Suite No. A, 11th Floor,
Ritz Plaza, 122 Austin Road, Tsimshatsui, Kowloon, in Hong Kong.
At the meeting, Sung Mi Yin, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
HILLWAY LOGISTICS: Creditors' Proofs of Debt Due March 8
--------------------------------------------------------
Hillway Logistics Limited, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by March 8, 2010, to be included in the company's dividend
distribution.
The company's liquidator is:
Chan Man Chung
Room 2401, 24/F
280 Portland Street Commercial Building
276-280 Portland Street
Mongkok, Kowloon
Hong Kong
HK SHING: Creditors' Proofs of Debt Due March 8
-----------------------------------------------
Creditors of Hong Kong Shing Lee Yuen Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by March 8, 2010, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on February 5, 2010.
The company's liquidator is:
Zheng Weihao
Fee Tat Commercial Centre, 21/F
No. 613 Nathan Road
Kowloon, Hong Kong
HK TOSHIN: Members' Final Meeting Set for March 5
-------------------------------------------------
Members of Hong Kong Toshin Sea Foods Company Limited will hold
their final meeting on March 5, 2010, at 5:45 p.m., at the Toshin
Building, 1-21-21 Kamiogi, Suginami-ku, Tokyo, in Japan.
At the meeting, Akinori Orimo the company's liquidator will give a
report on the company's wind-up proceedings and property disposal.
JETFLOW LIMITED: Ho and Man Step Down as Liquidators
----------------------------------------------------
Lui Wan Ho and To Chi Man stepped down as liquidators of Jetflow
Limited on February 1, 2010.
KAM TAI: Members' Final General Meeting Set for March 18
--------------------------------------------------------
Members of Kam Tai Hong Enterprises Limited will hold their final
general meeting on March 18, 2010, at 5:00 p.m., at its registered
office.
At the meeting, Francis Yan Shui Lau, the company's liquidator
will give a report on the company's wind-up proceedings and
property disposal.
KHIVA LIMITED: Members' Final Meeting Set for March 5
-----------------------------------------------------
Members of Khiva Limited will hold their final meeting on March 5,
2010, at 10:00 a.m., at 8th Floor, Gloucester Tower, The Landmark,
18 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.
LADIE'S LAWN: Suen Su Chun Appointed as Liquidator
--------------------------------------------------
Suen Su Chun on January 27, 2010, was appointed as liquidator of
The Ladie's Lawn Bowls Associated of Hong Kong Limited.
The liquidator may be reached at:
Suen Su Chun
Rm 601 Kalok Building
720 Nathan Road
Kowloon, Hong Kong
LONGWIND INTERNATIONAL: Members and Creditors to Meet on March 8
----------------------------------------------------------------
Members and creditors of Longwind International Limited will hold
their final meetings on March 8, 2010, at 3:00 p.m., and
3:15 p.m., respectively at Unit B, 8/F, Eastern Flower Centre,
22-24 Cameron Road, Tsimhatsui, Kowloon, in Hong Kong.
At the meeting, Shek Kwok Choi, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
LUI HING: Members' Final Meeting Set for March 8
------------------------------------------------
Members of Lui Hing Hop Cheung Kee Finance Limited will hold their
final meeting on March 8, 2010, at 10:00 a.m., at 1001 Admiralty
Centre Tower 1, 18 Harcourt Road, in Hong Kong.
At the meeting, Chan Kim Chee and Chiu Fan Wa, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
MEMEC ELECTRONIC: Lam and Toohey Step Down as Liquidators
---------------------------------------------------------
Rainier Hok Chung Lam and John James Toohey stepped down as
liquidators of Memec Electronic Components (AP) Limited on
February 5, 2010.
NUCLEAR CONSTRUCTION: Stephen Briscoe Steps Down as Liquidator
--------------------------------------------------------------
Stephen Briscoe stepped down as liquidator of Nuclear Construction
and Engineering Company Limited on January 27, 2010.
PERFECT PARADISE: Creditors' Proofs of Debt Due March 11
--------------------------------------------------------
Creditors of Perfect Paradise International Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by March 11, 2010, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on January 26, 2010.
The company's liquidator is:
Chan Kit Wang
Dominion Centre, Rooms 604-7
43-59 Queen's Road East
Hong Kong
=========
I N D I A
=========
DEVENTHIRA SPINNERS: CRISIL Puts 'BB+' Rating on INR54.2MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to Deventhira Spinners
Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR45 Million Cash Credit BB+/Stable (Assigned)
INR54.2 Million Term Loan BB+/Stable (Assigned)
The rating reflects DSPL's relatively small scale of operations,
exposure to intense competition in the spinning industry,
susceptibility to fluctuations in raw material prices, and to the
risks related to high dependence on a single supplier. These
rating weaknesses are partially offset by DSPL's comfortable
financial risk profile, established relationships with customers,
and promoter's experience in the textile industry.
Outlook: Stable
CRISIL believes that DSPL will maintain its comfortable gearing
and steady cash accruals over the medium term. The outlook may be
revised to 'Positive' if the company significantly increases its
revenues and improves its margins. Conversely, the outlook may be
revised to 'Negative' in case DSPL's financial risk profile
deteriorates, most likely driven by significant erosion in net
worth because of capital outgo in case of share buy-back, large
debt-funded capital expenditure, or adverse movement in input
prices impacting operating profitability or dilution in family
group synergies.
About Deventhira Spinners
Incorporated in 1980, DSPL manufactures blended polyester viscose
yarn (65 per cent polyester and 35 per cent viscose). DSPL's sales
are primarily to local dealers in Bhiwandi (Maharashtra) and
Bhilwara (Rajasthan). It commenced operations with 6,000
spindles, which was increased to 30,000 spindles in 2003. The
company is owned by six different family groups and day to day
operations are managed by Mr. Vasanth, Director. Mr. G Subramaniam
and family, who own 14 per cent of the shares in the company, is
planning to relinquish his stake in the near term.
DSPL reported a profit after tax (PAT) of INR7.8 million on net
sales of INR400 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR8.1 million on net sales
of INR483 million for 2007-08.
BOMMIDALA VENTURES: CRISIL Reaffirms 'P4+' Ratings
--------------------------------------------------
CRISIL's rating on the bank facilities of Bommidala Ventures Pvt
Ltd continues to reflect BVPL's below-average financial risk
profile marked by low net worth and weak debt protection measures
because of low profitability, working-capital-intensive
operations, and exposure to risks relating to unfavorable
regulations and fluctuations in the value of the Indian rupee.
These weaknesses are partially offset by the benefits BVPL derives
from the experience of its promoters in the tobacco industry, and
the healthy business prospects for Indian tobacco exporters.
Facilities Ratings
---------- -------
INR450.0 Million Packing Credit P4+ (Reaffirmed)
INR17.5 Million Letter of Credit P4+ (Reaffirmed)
INR15.0 Million Bank Guarantee P4+ (Reaffirmed)
BVPL, established in 1996 and based in Guntur, Andhra Pradesh, is
one of the leading exporters of tobacco. The company exports
processed tobacco leaves.
BVPL reported a profit after tax (PAT) of INR5.7 million on net
sales of INR515 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR3.8 million on net sales
of INR268 million for 2007-08.
CCS INFOTECH: Small Net Worth Cues 'BB+' Rating on INR5MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of CCS Infotech Ltd
continue to reflect CCS Infotech's below-average financial risk
profile constrained by its small net worth and weak debt
protection measures, the pressure on the company's margins because
of the fragmented nature of the IT hardware industry and
competition from large players, and the working-capital-intensive
nature of its operations. These weaknesses are partially offset
by CCS Infotech's established position in the system integration
and computer hardware market with a strong clientele.
Facilities Ratings
---------- -------
INR5 Million Long-Term Loan BB+/Stable (Reaffirmed)
INR156.5 Million Proposed LT Loan BB+/Stable (Reaffirmed)
INR64 Million Cash Credit Limits BB+/Stable (Reaffirmed)
INR10 Million Letter of Credit Limits P4+ (Reaffirmed)
INR14.5 Million Bank Guarantee Limits P4+ (Reaffirmed)
As part of this rating exercise, CRISIL has combined the financial
risk profiles of CCS Infotech and its subsidiary, CCS Infotech
Singapore Pte Ltd. This is because CCS Singapore is managed by
the promoters of CCS Infotech, and both companies have a common
line of business and fungible funds.
Outlook: Stable
CRISIL believes that CCS Infotech will continue to benefit from
its established position in the system integration and computer
hardware market and its strong clientele. The outlook may be
revised to 'Positive' in case of a substantial improvement in the
company's cash flows and margins, resulting in a healthy financial
risk profile. Conversely, the outlook may be revised to
'Negative' in case of a significant decline in CCS Infotech's
operating margin and cash flows on account of intense competition
in the computer hardware market, adversely affecting its debt
protection metrics, or if the company takes up aggressive retail
expansion.
About CCS Infotech
Set up as a partnership firm in 1989 by Mr. H Ratnakumar and
Mr. M A Hasan Abdul Kadar, and incorporated as a public limited
company in 1997, CCS Infotech assembles desktops, servers, and
notebooks, and provides system integration and networking
solutions. CCS Infotech started its retail information technology
(IT) operations in March 2008 by opening six outlets in Chennai.
The company's retail outlets sell multi-branded IT and lifestyle
products.
For 2008-09, CCS Infotech (consolidated with CCS Singapore)
reported a profit after tax (PAT) of INR5.08 million on a turnover
of INR702 million, against a PAT of INR6.42 million on a turnover
of INR748 million for 2007-08. For the nine monthly ended December
2009, the company reported a PAT of INR5.6 million on net sales of
INR589 million, against a PAT of INR2.3 million on net sales of
INR485 million in the corresponding period of the previous year.
KALPANA FASHIONS: CRISIL Assigns 'P4+' Ratings on Various Debts
---------------------------------------------------------------
CRISIL has assigned its rating of 'P4+' to the bank facilities of
Kalpana Fashions Ltd.
Facilities Ratings
---------- -------
INR50.0 Million Packing Credit P4+ (Assigned)
INR100.0 Million Bill Purchase/ P4+ (Assigned)
Discounting
The rating reflects KFL's exposure to risks relating to customer
concentration in revenue profile, to small scale of operations in
the intensely-competitive readymade garments industry, and to
fluctuations in the value of the Indian rupee. These weaknesses
are, however, partially offset by KFL's average financial risk
profile, and the benefits that the company derives from its
promoters' experience in the readymade garments exports business.
Set up in 1992, KFL (formerly, Kalpana International, a
proprietorship firm) converted to a closely-held public limited
company in 2009. KFL manufactures and exports readymade garments
and textile fabrics. The company outsources around 85 per cent of
its manufacturing on job work basis. It also has a manufacturing
facility at Faridabad, Haryana. KFL reported a profit after tax
(PAT) of INR13.6 million on net sales of INR698.5 million for
2008-09 (refers to financial year, April 1 to March 31), as
against a PAT of INR5.1 million on net sales of INR137.2 million
for 2007-08.
KINGFISHER AIRLINES: Hires Seabury Aviation for Restructuring
-------------------------------------------------------------
Anirban Chowdhury at Dow Jones Newswires reports that Kingfisher
Airlines Ltd. has appointed a unit of U.S.-based investment
banking and advisory firm Seabury Group LLC to advise the company
on its operational and financial performance and steer the carrier
toward profitability.
"Kingfisher Airlines has engaged the services of Seabury Aviation
& Aerospace, a specialized advisory firm with unparalleled global
expertise and knowledge at its disposal," Prakash Mirpuri, vice
president of corporate communications at Kingfisher Airlines, told
Dow Jones Newswires. "Seabury has been hired to come in and
assist us in sustaining long-term profitability by further
strengthening the operational and financial performance of the
company," he added.
Mr. Mirpuri, according to Dow Jones, said the decision to appoint
Seabury comes close on the heels of Kingfisher posting a fiscal
third-quarter profit of INR110 million at earnings before
interest, taxes, depreciation and amortization levels on its
domestic operations, compared with a loss of INR1.22 billion in
the year-earlier period.
Dow Jones relates the airline, which has been in the red since it
began operations in 2005, however, widened its third-quarter net
loss to INR10.75 billion in the quarter from INR10.55 billion last
year.
About Kingfisher Airlines
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd, serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops. It maintains bases in major cities such as Delhi and
Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known
for its United Breweries unit, and the carrier shares the
Kingfisher brand with a popular Indian beer. UB Holdings also
owns a stake in another domestic carrier, Air Deccan, whose
operations it combined with Kingfisher Airlines in mid-2008.
Kingfisher Airlines began flying in 2005.
* * *
Kingfisher Airlines reported a net loss of INR16.09 billion for
the year ended March 31, 2009, compared with a net loss of
INR1.89 billion in the year ended March 31, 2008.
In the financial year ended June 30, 2007, Deccan Aviation
reported a net loss of INR4.2 billion, up 23% from the
INR3.41 billion loss incurred in FY 2006.
KIRLOSKAR CONSTRUCTIONS: CRISIL Downgrades Ratings to 'BB'
----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Kirloskar Constructions and Engineers Ltd to 'BB/Negative/P4+'
from 'A/Stable/P1'.
Facilities Ratings
---------- -------
INR200 Million Cash Credit BB/Negative (Downgraded from
'A/Stable')
INR300 Million Term Loan BB/Negative (Downgraded from
'A/Stable')
INR750 Million Letter of Credit P4+ (Downgraded from 'P1')
and Bank Guarantee
The downgrade reflects KCEL's stretched liquidity over the past
two quarters, and less-than-expected support forthcoming from its
parent, Kirloskar Brothers Ltd (KBL; rated 'AA+/Stable/P1+').
KCEL is currently facing a stretched debtor position, which has
resulted in reduced cash flows. Moreover, CRISIL's earlier
ratings on KCEL's facilities were based on the KBL's articulation
of continued support to KCEL, given the importance of the
subsidiary to the parent's plans of strengthening its capabilities
in construction activities that form an integral part of
irrigation- and water-supply-related projects; this was eventually
expected to cement KBL's position as a complete water solutions
provider.
Hence, CRISIL has now not factored in any financial support from
KBL to KCEL and accordingly has assessed KCEL on a standalone
basis for arriving at the ratings. The ratings reflect KCEL's
weak standalone financial risk profile and relatively small scale
of operations. However, the ratings still factor in the benefit
that KCEL may draw from operational synergies with its parent,
KBL.
Outlook: Negative
CRISIL believes that KCEL's liquidity will continue to be
stretched because of delays in debtor collection. The rating may
be downgraded further in case the liquidity position worsens.
Conversely, the outlook may be revised to 'Stable' if the company
improves its debt collection period and profitability, thus
leading to an improvement in its liquidity.
About Kirloskar Constructions
Kirloskar Constructions and Engineers Ltd specializes in
mechanical and civil engineering projects. It also undertakes
contracts for construction of offshore structures such as jetties,
naval bases, and offshore platforms (fabrication and erection).
KBL acquired KCEL from the Chennai-based Aban group in September
2006. KBL is India's largest manufacturer and exporter of
centrifugal pumps. To establish its position as a complete water
solutions provider, KBL intends to strengthen its capabilities in
civil construction, which forms an integral part of irrigation and
water supply-related projects. In the future, both companies plan
to bid for projects jointly.
For 2008-09 (refers to financial year, April 1 to March 31), KCEL
reported a net loss of Rs109 million on Total Income of Rs1.22
billion as against a net loss of INR42 million on total income of
INR990 million, in the previous year.
L B KUNJIR: CRISIL Assigns 'BB+' Ratings on INR143.1MM Term Loans
-----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of L B Kunjir.
Facilities Ratings
---------- -------
INR40.0 Million Cash Credit BB+/Stable (Assigned)
INR45.0 Million Overdraft facility BB+/Stable (Assigned)
INR143.10 Million Term Loans BB+/Stable (Assigned)
INR60.0 Million Proposed Long Term BB+/Stable (Assigned)
Bank Loan facilities
INR25.0 Million Letter of Credit and P4+ (Assigned)
Bank Guarantee
INR50.0 Million Proposed Short Term P4+ (Assigned)
Bank Loan Facilities
The ratings reflect LBK's limited geographical and earnings
diversity, small scale of operations, and large working capital
requirements. These weaknesses are partially offset by LBK's
healthy operating margin, and strong order book position.
Outlook: Stable
CRISIL believes that LBK will maintain its credit risk profile
over the medium term on the back of its strong order book, and
healthy operating margin. CRISIL may revise the outlook to
'Positive' if the firm increases its scale of operations and its
cash accruals. Conversely, the outlook may be revised to
'Negative' if there is deterioration in the firm's operating
margin, slowdown in orders, or if the partners do not maintain
capital as per their commitment.
About L B Kunjir
LBK, set up as a partnership firm in 2002, is engaged in
construction of earthen dams and canals. The firm also has
investments in wind turbine power generation, and has a 2.85-
megawatt (MW) generation capacity; it proposes to add another 1.5
MW in 2009-10 (refers to financial year, April 1 to March 31). The
promoters are expected to convert the firm into a private limited
company over the medium term.
LBK reported a profit after tax (PAT) of INR58.4 million on net
sales of INR546.9 million for 2008-09, against a PAT of INR24.5
million on net sales of INR231.6 million for 2007-08.
LAXAI-AVANTI LIFE: Delay in Loan Repayment Cues CRISIL Junk Rating
------------------------------------------------------------------
CRISIL has assigned its ratings of 'D/P5' to Laxai-Avanti Life
Sciences Pvt Ltd's bank facilities. The ratings reflect delay by
Laxai-Avanti in servicing its term loan repayment obligations; the
delay has been because of Laxai-Avanti's weak liquidity.
Facilities Ratings
---------- -------
INR6.0 Million Cash Credit D (Assigned)
INR37.7 Million Bank Guarantee P5 (Assigned)
Laxai-Avanti, incorporated in 2006, is jointly promoted by the
Avanti Feeds group (promoted by Mr. A. Indra Kumar and Srinivasa
Cystine Ltd and associates), and the OSR group (promoted by
Mr. Vamsi Maddiapatla, and OSR Solutions Inc and associates).
Laxai-Avanti provides contract research services, primarily drug
discovery services for the Indian and international pharmaceutical
companies, and has a research and development unit in Hyderabad.
Laxai-Avanti reported a net loss of INR44.3 million on net sales
of INR25.0 million for 2008-09 (refers to financial year, April 1
to March 31), against a net loss of INR4.4 million on net sales of
INR16.5 million for 2007-08.
MEGHDEV ENTERPRISES: Low Net Worth Cues CRISIL 'BB+' Ratings
------------------------------------------------------------
CRISIL's rating on the bank facilities of Meghdev Enterprises
continues to reflect Meghdev's small scale of operations, large
working capital requirements, and substantial capital withdrawals
by the partners leading to a low net worth. These rating
weaknesses are partially offset by Meghdev's above average
financial risk profile marked by low gearing and comfortable debt
protection measures, and the benefits the firm derives from its
strong brand value in the decorative laminates market in India.
Facilities Ratings
---------- -------
INR60.00 Million Cash Credit Limit BB+/Stable (Reaffirmed)
INR20.00 Million Letter of Credit* BB+/Stable (Reaffirmed)
INR12.50 Million Term Loan BB+/Stable (Reaffirmed)
* Fully fungible with cash credit limits
Outlook: Stable
CRISIL believes that Meghdev will continue to benefit from its
established brand presence, and maintain its above average
financial risk profile over the medium term marked by low gearing
and comfortable debt protection measures. The outlook may be
revised to 'Positive' if the firm is able to scale up its
operations while maintaining a healthy financial risk profile.
Conversely, the outlook may be revised to 'Negative' if Meghdev's
financial risk profile is adversely impacted by withdrawals by
partners or merger with Olympic Laminates.
About Meghdev Enterprises
Meghdev is a partnership firm formed in 1978 by two Patel families
for manufacturing paper-based high-pressure decorative laminates.
The manufacturing facilities are based at Wadhwan city in Gujarat
(120 kilometres from Ahmedabad). The firm has capacity to
manufacture 800,000 decorative laminate sheets per annum of
various designs and finishing. It has been marketing its products
under the brand Royale Touche for more than 20 years.
Meghdev reported a profit after tax (PAT) of INR12.9 million on
net sales of INR357.4 million for 2008-09 (refers to financial
year, April 1 to March 31), as against a PAT of INR1.3 million on
net sales of INR309 million for 2007-08.
MITTAL CLOTHING: CRISIL Reaffirms 'BB' Rating on INR50MM Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Mittal Clothing Company
continue to reflect Mittal Clothing's small scale of operations,
substantial capital withdrawals by the partners leading to low net
worth, and customer and geographic concentration in its revenue
profile. These weaknesses are partially offset by Mittal
Clothing's established presence in garment exports, and healthy
financial risk profile marked by low gearing and comfortable debt
protection measures
Facilities Ratings
---------- -------
INR50 Million Proposed Long-Term BB/Stable (Reaffirmed)
Bank Facility*
INR85.0 Million Export Packing P4+ (Reaffirmed)
Credit Limits
INR30.0 Million Foreign Bill P4+ (Reaffirmed)
Discounting Limits
INR15.0 Million Standby Line of P4+ (Reaffirmed)
Credit Limits
INR15.0 Million Letter of Credit P4+ (Reaffirmed)
Limits
INR5.0 Million Bank Guarantee Limits P4+ (Reaffirmed)
* Enhanced from INR41.1 million
Outlook: Stable
CRISIL believes that Mittal Clothing will maintain its healthy
financial risk profile on the back of strong cash accruals and the
absence of large capital expenditure (capex) plans. The outlook
may be revised to 'Positive' if the firm's sales and profitability
margins increase substantially, leading to an improvement in its
business risk profile, and there is a significant and sustained
improvement in the firm's net worth. Conversely, the outlook may
be revised to 'Negative' in case of large-scale order
cancellations or a significant decline in revenues and
profitability margins, or if Mittal Clothing undertakes a large,
debt-funded capex programme, resulting in a sharp deterioration in
its capital structure.
About Mittal Clothing
Incorporated in 1996 as a partnership firm by Mr. Gajanand Mittal
and his sons, Mittal Clothing manufactures and exports knitted and
woven garments. It has a total installed manufacturing capacity
of 5 million pieces per annum, spread across three facilities in
Bengaluru. It has in-house divisions for printing and sewing of
knitted garments, which use imported computer numerically
controlled (CNC) machines that yield cost efficiencies.
For 2008-09 (refers to financial year, April 1 to March 31),
Mittal Clothing reported a profit after tax (PAT) of INR0.18
million on net sales of INR369.8 million, as against a PAT of
INR27.08 million on net sales of INR318.8 million in the previous
year.
SHAREEN AUTO: CRISIL Assigns 'BB-' Rating on INR13 Mil. Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to Shareen Auto
Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR20.0 Million Cash Credit BB-/Stable (Assigned)
INR13.0 Million Term Loan BB-/Stable (Assigned)
INR0.6 Million Proposed Long Term Bank BB-/Stable (Assigned)
Bank Loan Facility
INR7.5 Million Bill Discounting Facility P4+ (Assigned)
INR0.3 Million Bank Guarantee P4+ (Assigned)
The ratings reflect Shareen's small scale of operations, customer
concentration in revenue profile, limited financial flexibility
because of high gearing and small net worth, large working capital
requirements, and the susceptibility of its operating margin to
fluctuations in raw material prices. These rating weaknesses are
partially offset by the benefits that Shareen derives from its
promoters' experience in the automobile transmission components
industry, and by its established customer relationships.
Outlook: Stable
CRISIL believes that Shareen will maintain its business risk
profile on the back of its established customer relationships. The
company's scale of operations will remain small, and its financial
risk profile weak. The outlook may be revised to 'Positive' in
case of substantial increase in the company's scale of operations,
and improvement in its financial flexibility, led by increase in
net worth. Conversely, the outlook may be revised to 'Negative' if
the company undertakes a large, debt-funded capital expenditure
programme, or if its operating margin deteriorates sharply.
About Shareen Auto
Incorporated in 1986 by Mr. S N Asnani, Shareen manufactures
automobile parts, mainly transmission components, including
propeller shafts, wheel-bearing spindles, rear and axle shafts,
and U-bolts. The company's products find application in utility
and commercial vehicles, and are supplied to original equipment
manufacturers, mainly Mahindra & Mahindra Ltd (rated
'AA/Stable/P1+' by CRISIL). The company has a manufacturing unit
in Satpur (Maharashtra). It is managed by Mr. N A Sahadevan and
Mr. P D Deore. A group partnership concern, Kay-Es Industries,
which was engaged in heat treatment job-work for Shareen, and
group companies Sameer Auto Pvt Ltd and Seven Star Engineering Pvt
Ltd (Seven) were merged with Shareen in April 2008. Sameer and
Seven are also engaged in manufacture of transmission components
for automobiles.
Shareen reported a profit after tax (PAT) of INR3.5 million on net
sales of INR118.3 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR3.5 million on net sales
of INR99.4 million for 2007-08.
SPECTRUM ETHERS: CRISIL Puts 'BB' Rating on INR71.2MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to Spectrum
Ethers Ltd's bank facilities.
Facilities Ratings
---------- -------
INR71.2 Million Cash Credit BB/Stable (Assigned)
INR35.4 Million Long-Term Loan BB/Stable (Assigned)
INR35.0 Million Letter of Credit P4+ (Assigned)
Facility
INR5.0 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the expected weakening of SEL's financial risk
profile due to large debt-funded capital expenditure (capex), and
the company's exposure to risks relating to its small scale of
operations. These weaknesses are partially offset by the benefits
that SEL derives from its established customer base.
Outlook: Stable
CRISIL expects SEL's credit risk profile to remain constrained due
to the company's large debt-funded capex plans. The outlook may
be revised to 'Positive' if the company materially scales up its
operations, with timely commissioning of the new facility, while
sustaining its profitability. Conversely, the outlook may be
revised to 'Negative' if SEL's receivables remain stretched, or
there are significant bad debts, which would further weaken the
company's liquidity.
About Spectrum Ethers
Incorporated in 1993 by Mr. Milind Kolhe, SEL manufactures
formulated and technical-grade organo-phosphorous pesticides such
as phorate, ethion, and profenofos. The company's plant in Nashik
(Maharashtra) has the capacity to manufacture 9600 tonnes per
annum (tpa) of formulations and 2500 tpa of technical-grade
pesticides.
SEL reported a profit after tax (PAT) of INR5.7 million on net
sales of INR426.6 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.9 million on net
sales of INR360.0 million for 2007-08.
SWADESHI TEXTILE: Delay in Loan Repayment Cues CRISIL Junk Ratings
------------------------------------------------------------------
CRISIL has assigned its ratings of 'D/P5' to Swadeshi Textile Pvt
Ltd's bank facilities. The ratings reflect delay by STPL in the
repayment of its term loan obligations because of weak liquidity.
Facilities Ratings
---------- -------
INR25.0 Million Cash Credit D (Assigned)
INR130.0 Million Term Loan^ D (Assigned)
INR45.0 Million Bank Guarantee P5 (Assigned)
^Including proposed limit of INR35.3 Million
Incorporated in 2001, STPL manufactures interlining fabric and
wide width fabric. It procures grey fabric from looms in South
India, and produces interlining fabrics through the use of powder
coatings and chemicals. STPL's plant in Saigram (Gujarat) has a
processing capacity of 0.7 million metres per month for
manufacturing interlining fabric. The company also has 214 looms
with a combined capacity of 1 million metres per month of wide
width fabric. The company plans to enhance its interlining
capacity by 3 times; the new capacity is expected to be
commissioned in early 2010-11 (refers to financial year, April 1
to March 31).
In 2008, the operations of group company Talreja Infotech Pvt Ltd
(TIPL) were amalgamated with that of STPL. TIPL also manufactures
interlining fabric. STPL, before the amalgamation, traded in
interlining fabric. In 2007-08, STPL acquired the plant of The
Bombay Dyeing and Manufacturing Company Ltd (Bombay Dyeing) for
manufacturing wide width fabric.
STPL reported a net loss of INR14.6 million on net sales of INR293
million for 2008-09, against a net loss of INR0.9 million on net
sales of INR2 million for 2007-08. The losses were due to
inability of Bombay Dyeing to purchase stock from STPL because of
economic slowdown.
VAPI PRODUCTS: CRISIL Assigns 'BB+' Rating on INR91.7MM Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Vapi Products Industries Pvt Ltd.
Facilities Ratings
---------- -------
INR50.0 Million Cash Credit Limit BB+/Stable (Assigned)
INR91.7 Million Term Loan BB+/Stable (Assigned)
INR20.0 Million Proposed LT Bank BB+/Stable (Assigned)
Loan Facility
INR5.0 Million Letter of Credit P4+ (Assigned)
INR2.5 Million Bank Guarantee P4+ (Assigned)
The ratings reflect VPIPL's exposure to risks relating to customer
concentration in its revenue profile and small scale of
operations. These weaknesses are partially offset by VPIPL's
moderate financial risk profile marked by comfortable debt
protection indicators and gearing levels.
Outlook: Stable
CRISIL believes that VPIPL will maintain a moderate financial risk
profile and continue to benefit from its established track record
in the polymer intermediaries industry. The outlook may be
revised to 'Positive' if VPIPL diversifies its client and
geographic base, and increases its profitability. Conversely, the
outlook may be revised to 'Negative' if VPIPL's profitability
deteriorates reducing its debt repayment ability, or if its
financial risk profile deteriorates due to debt-funded capital
expenditure.
About Vapi Products
Vapi Products Industries Pvt Ltd, set up in 1988, became a private
limited company in 2005. It manufactures intermediaries at its
two units in Vapi (Gujarat). One of VPIPL's units, which accounts
of 90 per cent of its revenues, manufactures polymer
intermediaries such as 4 NPI (primarily for SABIC Innovative
Plastics, USA), and 4,4'-dichlorodiphenyl sulfone for multiple
customers such as Vertellus Specialties UK, Atul ltd. The other
unit, which accounts for 10 per cent of its revenues, manufactures
acrylic emulsions primarily for CIBA Specialty Chemicals (India).
The company's manufacturing units were shut down for almost six
months in 2007-08 to facilitate expansion and modification.
VPIPL reported a profit after tax (PAT) of INR10.2 million on net
sales of INR187 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR4.2 million on net sales
of INR105.1 million for 2007-08.
=========
J A P A N
=========
AIFUL CORP: ISDA to Hold Auction on March 18
--------------------------------------------
Abigail Moses at Bloomberg News reports that the International
Swaps & Derivatives Association said credit-default swaps linked
to Aiful Corp. will be settled at auction on March 18
Dealers voted to postpone an auction planned for Feb. 18,
Bloomberg says.
The Troubled Company Reporter-Asia Pacific reported on January 4,
2010, that the International Swaps and Derivatives Association,
Inc., said its Japan Credit Derivatives Determinations Committee
resolved that a Restructuring Credit Event occurred in respect of
Aiful Corp. The Committee also voted to hold an auction for
Aiful.
ISDA will facilitate the process by publishing the auction terms
on its Web site http://www.isda.org/credit,in due course. The
auction will be administered by Markit and Creditex.
As reported in the TCR-AP on Dec. 29, 2009, Bloomberg News said
UBS AG's request for a ruling on credit contracts linked to Aiful
Corp. was accepted by an international group governing swaps and
derivatives, paving the way for debt holders of the Japanese
company to get repaid.
Holders of credit-default swaps on Aiful were roiled in October
last year after the committee rejected three requests to rule a
credit event had occurred, citing a lack of publicly available
information on which to make a judgment, according to Bloomberg.
Bloomberg said Zurich-based UBS had submitted a request to the
determinations committee of 15 dealers and investors including
Goldman Sachs Group Inc. and Mizuho Securities Co.
Aiful said in September that it has begun preliminary
consultations with the Japanese Association of Turnaround
Professionals to apply for commencement of consensual business
revitalization alternative dispute resolution procedures. The
JATP has provisionally accepted the company's preliminary
application to utilize the business revitalization procedures.
The lender asked its financial institutions for the maintenance of
its debt balance for a certain period and then the debt
rescheduling.
About ISDA
ISDA -- http://www.isda.org/-- which represents participants in
the privately negotiated derivatives industry, is among the
world's largest global financial trade associations as measured by
number of member firms. ISDA was chartered in 1985, and today has
over 830 member institutions from 58 countries on six continents.
These members include most of the world's major institutions that
deal in privately negotiated derivatives, as well as many of the
businesses, governmental entities and other end users that rely on
over-the-counter derivatives to manage efficiently the financial
market risks inherent in their core economic activities.
About Aiful
Aiful Corporation (TYO:8515) -- http://www.ir-aiful.com/-- is
a Japan-based financial service provider. The company is
engaged in the provision of small-lot uncollateralized loan for
individual consumers, business loan for individuals, as well as
mortgage collateral and credit card services, in addition to the
collection and management of debts. Other business activities
the Company is involved in include the development, investment
and nurture of venture companies, as well as the leasing of real
estates. Headquartered in Kyoto, the Company has 29 subsidiaries
and two associated companies.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
September 29, 2009, Moody's Investors Service downgraded to Caa1
from B3 the long-term senior unsecured debt rating and unsecured
medium-term note rating of Aiful Corporation. At the same time,
Moody's continues to review the ratings for possible further
downgrade. In addition, Moody's says Aiful's issuer rating
remains at Caa1, but continues to review it for possible further
downgrade.
The TCR-AP reported on Dec. 29, 2009, that Standard & Poor's
Ratings Services revised its long-term and short-term counterparty
ratings on Aiful Corp. to 'CCC-' and 'C', respectively, from 'SD',
and placed the long-term counterparty rating on CreditWatch with
positive implications. The rating action follows an agreement by
Aiful's creditors on the rescheduling of debt repayments worth
JPY280 billion under alternative dispute resolution procedures.
Repayments will be suspended until September 2010. Standard &
Poor's considers that the creditors' agreement on the rescheduling
resolves the selective default status on Aiful. The revised
ratings also reflect S&P's review of the probability of debt
repayment under the new repayment schedule.
At the same time, S&P lowered its senior unsecured rating on Aiful
by one notch to 'CCC-' from 'CCC' and kept the rating on
CreditWatch with developing implications. Although the agreement
by creditors increases the overall probability of repayments,
Standard & Poor's sees a likelihood of Aiful undertaking bond
repurchases. According to S&P's rating criteria, such repurchases
may be regarded as distressed debt restructuring by an issuer in
difficulty, and may constitute a default. As such, S&P may lower
ratings on repurchased bonds on a issue-by-issue basis.
ALL NIPPON: Launches Nighttime Cargo Delivery Service
-----------------------------------------------------
Japan Today reports that All Nippon Airways Co. has launched a
nighttime cargo delivery service to five areas in Asia from
Hiroshima Airport via Tokyo's Haneda and Okinawa's Naha airports.
The report relates ANA said the new service shortens the air cargo
delivery time from Hiroshima by around half a day compared with
trucking cargo to Kansai International Airport near Osaka.
The service is part of ANA's "Okinawa cargo hub" service launched
last October linking Japan's Narita, Haneda and Kansai airports
with airports in Bangkok, Hong Kong, Seoul, Shanghai and Taipei
via Naha Airport, according to Japan Today.
About All Nippon Airways
All Nippon Airways Co. Ltd. -- http://www.ana.co.jp/-- is a
Japan-based company engaged in three business segments. Its Air
Transportation segment is engaged in the air transportation
business, as well as the provision of services at airports, the
provision of reservation services through telephones and the
maintenance of aircrafts in the country and overseas markets. The
Traveling segment develops, plans and sells tour packages under
the brand names ANA Hello Tour and ANA Sky Holiday. This segment
also offers services to travelers and sells travel products and
air tickets. The Others segment is involved in the information
communications, real estate, building management, land
transportation and airplane fixture repair businesses, among
others. The company has 112 subsidiaries and 40 associated
companies.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 23, 2009, Moody's Investors Service downgraded the long-term
debt ratings of All Nippon Airways Co., Ltd., to Ba2 from Baa3.
The outlook is stable.
AUTOBACS SEVEN: US Unit Completes Bankruptcy Procedures
-------------------------------------------------------
According to reporting by Gregory Turk at Bloomberg News, Autobacs
Seven Co. said its U.S. subsidiary completed bankruptcy
procedures. The Japanese parent said in statement to the Tokyo
Stock Exchange that Autobacs U.S.A. was ordered to complete
bankruptcy procedures by a U.S. federal court. The unit had
liabilities of US$3.8 million as of December 2008.
Autobacs USA sells auto-part accessories. The Debtor is a
subsidiary of Autobacs Seven Co. Ltd., auto-parts retailer of
Japan.
Autobacs U.S.A., Inc., filed for Chapter 11 on Feb. 4, 2009
(Bankr. C.D. Calif. Case No. 09-10898). Marc J. Winthrop, Esq.,
at Winthrop Couchot Pofressional Corporation, represents the
Debtor in its Chapter 11 effort. The petition says that assets
and debts are US$1 million to US$10 million.
JAPAN AIRLINES: Opts to Remain in Alliance with American
--------------------------------------------------------
Japan Airlines Corp. announced a decision to strengthen its
partnership with American Airlines. The carriers, both members of
the oneworld alliance, will jointly apply to the U.S Department of
Transportation and the Ministry of Land Infrastructure, Transport
and Tourism of Japan for the approval of antitrust immunity on
transpacific routes.
Upon receiving the approval from the relevant authorities, JAL and
American Airlines intend to enter a joint business venture which
will enhance their scope of cooperation on the routes between the
United States and Japan, through adjustments to their respective
networks, flight schedules, and other business activities,
allowing both carriers to better complement each other to develop
and offer competitive products and quality service to their
customers.
The JAL Group Chief Operating Officer and president, Masaru Onishi
said on this occasion: "We have analyzed this issue in great
detail, and we are excited at the prospects in terms of the
convenience and benefits for our customers. We also firmly believe
that the advantages of this development with American Airlines can
strongly support JAL at a time when we are striving towards the
revival of our business, which we are determined to achieve. We
certainly look forward to a deeper, more mutually-beneficial
relationship with our long-time partner."
As JAL undergoes the process of reorganization, it will seize the
opportunity presented by this partnership to strengthen its
network and further improve its offerings. From hence forth, in
addition to the joint business agreement with AMR, JAL will also
fortify its relationships with other partners in the oneworld
alliance, so as to provide customers a comprehensive range of
products and services, and become once again, the airline of
customer's choice.
In response to JAL's announcement, Delta said it is "well
positioned as the No. 1 carrier between the U.S. and Asia.
Customers can continue to count on Delta for unmatched access to
Japan, with nonstop service between 10 U.S. destinations and
Tokyo. With recently announced plans to invest $1 billion in our
product, Delta remains committed to providing a leading option for
travel across the Pacific. Delta's competitive Pacific presence,
along with our trans-Atlantic joint venture with Air France/KLM
and leading position in global markets, will continue to allow
Delta and our SkyTeam partners to meet demand worldwide."
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 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 company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
* * *
Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization January 19 in the
Tokyo District Court and filed a Chapter 15 petition in New York
(Bankr. S.D.N.Y. Case No. 10-10198). The Company said debt is
$28 billion.
Bankruptcy Creditors' Service, Inc., publishes Japan Airlines
Bankruptcy News. The newsletter tracks the Chapter 15 proceedings
and the bankruptcy proceedings in Tokyo undertaken by Japan
Airlines Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
MOMENTUM CDO: S&P Corrects Rating on 2006-22 Notes to 'D'
---------------------------------------------------------
Standard & Poor's Ratings Services corrected its rating on the
credit linked notes issued under Momentum CDO (Europe) Ltd.'s
series 2006-22 transaction by lowering its rating on the tranche
to 'D' from 'CCC-', following the receipt of a loss calculation
notice.
On Feb. 5, 2010, the calculation agent notified Standard & Poor's
that on Nov. 25, 2009, the losses from credit events in the
transaction's underlying portfolios had exceeded the available
credit enhancement. S&P lowered the rating on the notes to 'D'
based on the fact that noteholders have suffered a principal loss.
The rating action did not occur contemporaneously with the loss
realization because the loss calculation notice was not delivered
to us until February 2010.
Rating Lowered
Momentum CDO (Europe) Ltd.
SONATA 5 floating rate notes series 2006-22
To From Issue Amount
-- ---- ------------
D CCC- $10.0 mil.
=========
K O R E A
=========
HYNIX SEMICONDUCTOR: Korea Finance May Oppose a Block Share Sale
----------------------------------------------------------------
Korea Finance Corp. and other state-run financial companies may
oppose a block sale of Hynix Semiconductor Inc. shares if the
company fails to attract a bidder for a controlling stake,
Bloomberg News reports citing Edaily.
Bloomberg says Hynix Semiconductor Inc. gained the most in almost
four weeks in Seoul trading on Edaily report.
Hynix rose 4.8% to KRW22,750 won at 2:44 p.m. on the Korea
Exchange on February 9, heading for the biggest advance since Jan.
14, Bloomberg notes.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 27, 2009, Hynix Semiconductor's creditors re-invited fresh
bids for the sale of a combined 28% holding in the chipmaker and
received letters of intent from potential investors by January
after Hyosung Corp. dropped its bid.
Hynix's creditors last week extended the deadline for accepting
bids for a controlling stake in the memory chipmaker until
February 12 after failing to receive any bids by the January 29
deadline.
Dow Jones News reported that a person familiar with the matter
said the creditors may consider a block sale if bidding fails for
the second time, which analysts agree is the right move.
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.
About Hynix
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
Jan. 27, 2010, Moody's Investors Service changed to stable from
negative the outlook for Hynix Semiconductor Inc's B1 corporate
family and senior unsecured bond ratings. The rating action has
been prompted by the sharp rebound in the company's operating
performance and improved liquidity profile.
Standard & Poor's Ratings Services, on Nov. 17, 2009, 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.
HYUNDAI MOTOR: Chairman Ordered to Pay KRW70BB to Hyundai
---------------------------------------------------------
Hyundai Motor Chairman Chung Mong-koo has been ordered to pay
KRW70 billion (US$59.7 million) to the automaker for causing
financial damages, The Chosun Ilbo reports.
The Seoul Central District Court also ordered the company's former
vice chairman Kim Dong-jin to pay KRW55 billion to Hyundai, the
report says.
Chosun Ilbo recalls that a group of minority shareholders filed a
suit against Messrs. Chung and Kim in 2008 seeking payment of some
KRW563 billion from the top executives for losses the company
suffered in 2001 stemming from its participation in highly risky
stake sales of its affiliates.
Mr. Chung was given a three-year jail sentence in June 2008 for
embezzling company funds and breach of duty but was pardoned by
South Korean President Lee Myung-bak two months later, Chosun Ilbo
states.
Solidarity for Economic Reform, which led shareholders suing for
damages, said it would appeal to a higher court to seek more
money, according to Bloomberg News.
About Hyundai Motor
Headquartered in Seoul, South Korea, Hyundai Motor Company
(SEO:005380) -- http://www.hyundai-motor.com/-- is an automobile
manufacturer. The company markets the Genesis, Genesis Coupe,
Azera, Sonata, Elantra, Accent, Getz, i30, i30cw, i20 and i10
passenger cars; the Veracruz, Santa Fe, Tucson, Matrix, H-1
recreational vehicles, and commercial vehicles, which include
medium and heavy duty trucks, van trucks, tank lorries, bulk
cement carriers, bulk cement tractors and others.
* * *
The TCR-AP reported on December 11, 2009, that Fitch Ratings
revised the Outlook on Hyundai Motor's and Kia Motors' foreign
currency Long-term Issuer Default Ratings to Positive from
Negative, and simultaneously affirmed them at 'BB+'. The agency
also affirmed the 'BB+' rating on both companies' senior unsecured
debt and the Short-term IDRs at 'B'.
HMC's and Kia's Long-term IDR was downgraded to 'BB+' with
Negative Outlook in January 2009, due to concerns that the global
auto market downturn would negatively impact the profitability and
key credit metrics of the companies to an extent that is not
commensurate to investment grade levels.
====================
N E W Z E A L A N D
====================
MONACO VILLAGE: Faces Liquidation Bid from Investor
---------------------------------------------------
The Press reports that a Wellington-based investor has filed an
application to liquidate Monaco Village Ltd., a Nelson company
that developed the NZ$60 million Grand Mercure Nelson Monaco.
According to The Press, Warwick Walbran, who purchased a unit in
the resort with a "guaranteed" 8% return, said his consultancy
company bought the one-bedroom unit about two years ago for
NZ$270,000. "None of the guaranteed returns has been paid that I
know of," he said.
The Press relates Mr. Walbran said that other investors had
supported him in filing the application, as they were also being
held liable for ongoing costs associated with the units without
receiving the promised income.
Scott Sanders, the developer and part-owner of the Grand Mercure
Nelson Monaco, told the Nelson Mail the guaranteed 8% return had
been based on a commitment from Lombard Finance, which then went
into receivership.
The Press notes Mr. Sanders did not believe the liquidation
application would be damaging to the resort, which is operated by
a different company.
The liquidation application for Monaco Village Ltd is set to be
heard by the High Court at Christchurch on February 15, the Press
adds.
SALTHOUSE MARINE: In Receivership; 51 Jobs Affected
---------------------------------------------------
Salthouse Marine Ltd. has been placed in receivership and is
closing the business, a report posted at tvnz.co.nz says. About
51 jobs will be affected, the report says.
According to the report, receiver John Price of HPL Partners was
appointed on February 4 by a private investor.
Two boats near completion were being finished and a decision was
yet to be made on a large project, the report says.
The report relates Mr. Price declined to put a figure on the size
of the receivership.
Salthouse Marine Ltd. -- http://www.salthousemarine.com/-- is a
New Zealand maker of motor yachts.
SMART SERIES: S&P Raises Ratings on Four Classes of 2007-2 Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on class B,
C, D, and E notes issued by SMART Series 2007-2 Trust. At the
same time, Standard & Poor's affirmed the 'AAA' rating on the
class A-2 notes. SMART Series 2007-2 Trust's A$1 billion of
floating-rate notes were issued in July 2007 and are backed by
commercial hire purchase, chattel mortgage contracts, novated
leases, and finance leases originated by Macquarie Leasing Pty
Ltd., for the purchase or lease of a variety of vehicles and
equipment.
The upgrades reflect the strong asset performance over the life of
the transaction and increases in the subordination as a percentage
of outstanding balance for each class of notes. To date,
cumulative net losses are equal to 0.55% of the original
receivables balance and have been absorbed by excess spread; there
is currently no charge-offs to the notes. The proportion of loans
in arrears remains low, with loans in arrears greater than 30 days
totaling 0.37% of the current receivables balance. The portfolio
is well seasoned; 79% of the underlying receivables have paid down
and the weighted average term to maturity of the remaining
receivables is 14 months.
Ratings Raised
Name Class Rating to Rating from
---- ----- --------- -----------
SMART Series 2007-2 Trust B AA A
SMART Series 2007-2 Trust C A BBB
SMART Series 2007-2 Trust D BBB BB
SMART Series 2007-2 Trust E BB B
Ratings Affirmed
Name Class Rating
---- ----- ------
SMART Series 2007-2 Trust A-2 AAA
=====================
P H I L I P P I N E S
=====================
BELL TELECOM: NTC Approves Sale of Biz to Two Cassandra-CCI
-----------------------------------------------------------
The National Telecommunications Commission has approved the sale
of Bell Telecommunications Philippines to Two Cassandra-CCI
Conglomerates Inc., the Manila Standard Today reports.
Citing NTC's order dated Feb. 3, the Standard Today relates that
the entry of Two Cassandra will give BellTel "needed capital to
expand its existing infrastructure and build new infrastructures
to be able to contend in the highly competitive telecommunications
market."
BellTel, which has PHP650 million in deficit, did not cite the
cost of the full acquisition of shares, the Standard Today says.
According to the report, listed firms South China Resources Inc.
and Liberty Flour Mills Inc. in December sold their 3.24 million
shares for PHP227 million and 600,000 shares for PHP1.23 billion
in BellTel, respectively. Two Cassandra in the same month also
agreed to acquire the balance of 60% after the NTC approved the
change in ownership, the Standard Today relates.
Two Cassandra is a shareholder of Liberty Telecoms Holdings, which
is partly owned by SMC and Qatar Telecom.
Commercially launched in January 2002, BellTel is a full-service
telecommunications company. BellTel holds the necessary licenses
and authorizations to install, operate and maintain local exchange
and wireless in the local loop (WiLL) networks in several areas
including special economic zones, inter-exchange networks,
nationwide VSAT network, international gateway facilities and
cellular mobile telecommunications network. The company also has
franchises to install, operate and maintain wireless networks for
mobile telecommunications
===========
T A I W A N
===========
AU OPTRONICS: Reports January 2010 Consolidated Revenue
-------------------------------------------------------
AU Optronics Corp. announced its preliminary consolidated January
2010 revenue of NT$38.22 billion, up by 3.8% from December 2009.
Consolidated revenue last month also surged by 188.6% year-over-
year.
Large-sized panel shipments for January 2010, with applications on
desktop monitor, notebook PC, and LCD TV, totaled 9.45 million
units, a 3.8% month-over-month growth. As to small-and-medium-
sized panels, the shipments were close to 19.52 million units, a
23.4% increase from the previous month.
Based in Taiwan, AU Optronics Corp. -- http://www.auo.com/--
designs, develops, manufactures, assembles and markets flat panel
displays. The Company's principal products are thin-film
transistor-liquid crystal display (TFT-LCD) panels. Its panels
are used in computer products, such as notebook computers and
desktop monitors; consumer electronics products, such as mobile
phones, digital photo frames, digital still cameras, portable
navigation display, portable digital video disc players, LCD
televisions, and industrial displays. The Company sells its
panels primarily to original equipment manufacturing service
providers or brand customers. The Company groups its business
into three marketing channels: Information Technology Displays,
Consumer Products Displays and Television Displays. In March 2008
and June 2008, the Company acquired 45% and 26% of equity
interests in Verticil Electronic Corp. and Dazzo Technology
Corporation, respectively.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 14, 2009, Fitch Ratings upgraded AU Optronics Corporation's
Long-term foreign and local currency Issuer Default Ratings to
'BB-' from 'B+', and its National Long-term rating to 'BBB(twn)'
from 'BBB-(twn)'. The Outlook is revised to Stable from Negative.
JIH SUN: Fitch Affirms Individual Rating at 'D'
-----------------------------------------------
Fitch Ratings has affirmed the ratings of Taiwan's Jih Sun group,
namely Jih Sun Financial Holding Co., Ltd, and its wholly-owned
subsidiaries, Jih Sun International Bank and Jih Sun Securities
Corp., Ltd. The Outlooks on the Long-term Issuer Default Ratings
and National Long-term ratings for these companies remain Stable.
The affirmations of Jih Sun group's ratings reflect the
improvement in the group's overall financial profile, following
the recapitalization in April 2009. However, the ratings also
consider the vulnerability of the group's asset quality arising
from its banking franchise, JSIB (81.9% of group assets at end-
Q309), given the tough domestic economic environment and the
challenge it faces in turning its operations around. Fitch notes
that JSH's management is planning to issue long-dated senior debt
to enhance its funding structure and reduce its reliance on short-
term borrowings, which have increased since the beginning of
2008's disruptive global financial crisis.
JSIB's ratings reflect its improving asset quality, albeit still
weak, acceptable capitalization and adequate liquidity. Following
an ownership change in April 2009, a new management team joined
JSH to revamp its credit risk management and clean up its loan
portfolio. Despite the strengthening of JSIB's asset quality
following the bank's stepped-up effort to charge-off bad loans in
2009, the bank's non-performing loan ratio of 2.0% and loan loss
reserve coverage of 47.8% at end-2009 remained relatively weak as
compared to industry average. Furthermore, Fitch notes that some
restructured loans at JSIB, in relation to the government debt
relief programme, are not accounted in the reported NPLs. That
said, JSIB's capitalization is acceptable with Tier 1 ratio at
9.2% as of end-Q309, providing a cushion against potential bad
loan losses in 2010. Liquidity profile of JSIB also remains
adequate, as the bank deliberately increased its liquidity reserve
(to 33% at end-Q309) and lowered its loan-deposit ratio (to 70.6%
at end-Q309) to guard against a potential liquidity squeeze.
JSS's Individual rating mainly reflects its consistent
profitability, manageable risk exposures, adequate capitalization
and satisfactory liquidity position. However, its IDR factors in
the potential need to support its bank affiliate, JSIB, should the
latest capital injection in April 2009 fail to brace up the bank's
sagging financial strength. JSS reported a reasonably good
bottom-line profitability with a return-on-equity of 7.0% in 9M09,
thanks to the earnings improvement in proprietary trading and
brokerage income during the period. Fitch expects limited risk to
arise from its investment portfolio as JSS has substantially
decreased its proprietary trading positions, in which bonds and
stock investments accounted for 29.2% and 11.6% of its total
equity respectively at end-Q309. The company is adequately
capitalized with capital adequacy ratio of 477% as at end-Q309.
Established in 2002, JSH was the second smallest financial holding
company in Taiwan with consolidated assets of TWD238.9 billion at
end-Q309. JSIB and JSS are JSH's two main operating subsidiaries,
and JSH's major shareholders are Capital Target and Shinsei Bank,
with respective equity interest of 26.1% and 30.5%. JSS is one of
the larger securities companies in Taiwan, with a stock brokerage
market share of 4.43% in 9M09. Meanwhile, JSIB is a small private
bank in Taiwan with a deposits market share of 0.63% at end-
November 2009.
JSH:
-- Long-term Foreign Currency IDR affirmed at 'BB';
-- Short-term Foreign Currency IDR affirmed at 'B';
-- National Long-term rating affirmed at 'BBB+(twn)';
-- National Short-term rating affirmed at 'F2 (twn)';
-- Individual rating affirmed at 'D';
-- Support rating affirmed at '5';
-- Support Rating Floor affirmed at 'NF'; and
-- Subordinated debt rating affirmed at 'BBB(twn)'
JSIB:
-- Long-term Foreign Currency IDR affirmed at 'BB';
-- Short-term Foreign Currency IDR affirmed at 'B';
-- National Long-term rating affirmed at 'BBB+(twn)';
-- National Short-term rating affirmed at 'F2 (twn)';
-- Individual rating affirmed at 'D'; and
-- Support rating affirmed at '3'.
JSS:
-- Long-term Foreign Currency IDR affirmed at 'BB+';
-- Short-term Foreign Currency IDR affirmed at 'B';
-- National Long-term rating affirmed at 'A-(twn)' (A
minus(twn));
-- National Short-term rating affirmed at 'F2(twn)';
-- Individual rating affirmed at 'C/D';
-- Support rating affirmed at '5'; and
-- Support Rating Floor affirmed at 'NF'.
===============
T H A I L A N D
===============
LEHMAN BROTHERS: Thailand Unit to Sell Resort This Month
--------------------------------------------------------
Bangkok Post reports that Baan Taling Ngam Resort on Koh Samui,
owned by Lehman Brothers (Thailand), will be offered for tender
later this month.
It will be the bank's first asset in Thailand to be sold as an
open-market transaction since the Wall Street investment bank
collapsed in late 2008, the Post says.
According to the report, Binswanger Brooker (Thailand), a property
consultancy, has been reviewing Lehman's local assets for the past
three months as a consultant for potential investors.
"[Lehman Brothers] assets that we're looking at mainly are hotel
and hospitality businesses," the Post quoted Nigel Cornick, CEO of
Binswanger Brooker (Thailand), as saying. "We have studied the
opportunity for our clients to buy debt or stakes held by Lehman
Brothers."
The Post discloses that Baan Taling Ngam Resort was one of four
assets Lehman Brothers (Thailand) purchased from listed developer
Natural Park Plc's subsidiary Pacific Assets Plc in October 2005
in a transaction totalling THB3.22 billion.
Lehman Brothers (Thailand), according to the Post, also owned two
leasehold office buildings -- One Pacific Place and Two Pacific
Place on Sukhumvit Road -- as well as Pantip Court Executive
Residence on Sathon Road and Le Royal Meridien Phuket Yacht Club
in Phuket.
The report relates Mr. Cornick said Lehman's investment in
Thailand totalled about US$1 billion, representing about 0.33% of
worldwide assets of US$300 billion.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also
bought Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Feb. 21-23, 2010
INSOL
International Annual Regional Conference
Madinat Jumeirah, Dubai, UAE
Contact: 44-0-20-7929-6679 or http://www.insol.org/
April 20-22, 2010
TURNAROUND MANAGEMENT ASSOCIATION
Sheraton New York Hotel and Towers, New York, NY
Contact: http://www.turnaround.org/
Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Ritz-Carlton Amelia Island, Amelia, Fla.
Contact: http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Contact: http://www.abiworld.org/
October 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Valerie C. Udtuhan, Marites O. Claro,
Rousel Elaine C. Tumanda, Joy A. Agravante, Frauline S. Abangan,
and Peter A. Chapman, Editors.
Copyright 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 ***