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/raid1/www/Hosts/bankrupt/TCRAP_Public/100226.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 Friday, February 26, 2010, Vol. 13, No. 040 Headlines A U S T R A L I A CENTRO PROPERTIES: First Half Net Loss Narrows to AU$63.2 Million OCCUPATIONAL & MEDICAL: Chapter 15 Case Summary STORM FINANCIAL: BoQ Won't Follow CBA with Compensation Scheme C H I N A CHINA ARCHITECTURAL: Enters Into Conditional Waiver Deal CHINA EASTERN: In Talks with Three Global Airline Alliances GENERAL MOTORS: Considers Several Potential Bidders for Hummer H O N G K O N G ALLIED SERVICES: Court Enters Wind-Up Order ASIA MASTER: Court to Hear Wind-Up Petition on March 10 BIG INCOME: Court to Hear Wind-Up Petition on March 17 BOMEITI LIMITED: Court Enters Wind-Up Order CEDAR BASE: Wardell and Chan Step Down as Liquidators CHECKERS LIMITED: Provisional Liquidators Appointed DIANOOR INTERNATIONAL: Provisional Liquidators Appointed DIANOOR JEWELCRAFT: Provisional Liquidators Appointed EASEFUL STRATEGIC: Li and Tsang Appointed as Liquidators FTE LOGISTICS: Arboit and Blade Appointed as Liquidators LEHMAN BROTHERS: Hong Kong Agency Probing 1,056 Remaining Cases I N D I A AMIT MOTORCYCLES: CRISIL Places 'B+' Rating on INR40MM Cash Credit BAAHUBALI FERRO: CRISIL Assigns 'B-' Rating on Various Bank Debts BENARA BEARINGS: CRISIL Assigns Junk Ratings on Various Debts FAIRY FOOD: Weak Liquidity Prompts CRISIL 'C' Ratings HAYATH FOODS: Delays in Loan Repayment Cues CRISIL Junk Ratings INFOSPECTRUM INDIA: CRISIL Puts 'BB+' Rating on INR42.9MM Loan INTELLIGENT INFRASTRUCTURE: Fitch Assigns 'BB-' National Rating JAI SHIV: Delay in Loan Repayment Cues CRISIL Junk Ratings KINGFISHER AIRLINES: Set to Join oneworld Alliance MAHIMA FIBRESL: CRISIL Reaffirms 'BB-' Rating on Various Loans MERRILL IMPEX: Low Profitability Cues CRISIL 'BB-' Ratings PANSURIYA IMPEX: CRISIL Assigns 'P4' Rating on Various Bank Debts RAINBOW PACKAGING: Low Net Worth Prompts CRISIL 'B' Ratings SUMEET GEMS: Small Net Worth Prompts CRISIL 'BB' Ratings SUNDARAM JEWELRY: CRISIL Rates Post Shipment Credit at 'P4+' TATA MOTORS: Jaguar Land Rover Gets GBP340MM European Bank Loan J A P A N ELPIDA MEMORY: Plans to Take Taiwan Subsidiary Public Next Year JAPAN AIRLINES: Applies Antitrust Immunity With American Air JAPAN AIRLINES: M. Ventress Wants Lift Stay to Continue Appeal JAPAN AIRLINES: US Court Recognizes Tokyo Case as Main Proceeding NOMURA HOLDINGS: Fitch Affirms Ratings; Gives Positive Outlook PIONEER CORPORATION: Moody's Gives Stable Outlook on 'B2' Rating WILLCOM INC: ISDA Rules Willcom Bankruptcy is Credit Event K O R E A HYNIX SEMICONDUCTOR: Creditors to Sell Up to 13% Hynix Stake KUMHO ASIANA: Creditors to Double Support to Kumho Petrochemical SSANGYONG MOTOR: Seeks KRW100BB Loans Due to Cash Shortage, Report * SOUTH KOREA: Creditor Banks to Start Assessing Troubled Firms M A L A Y S I A OCI BERHAD: Incurs MYR1.32-Mil. Net Loss for Qtr. to Dec. 31 N E W Z E A L A N D LOMBARD GROUP: ACIL Shareholders Get 98% Stake in Reverse Takeover NZF MONEY: Fails to Qualify for Gov't. Retail Deposit Guarantee NZF MONEY: S&P Assigns 'B' Long-Term Counterparty Credit Rating P H I L I P P I N E S BENGUET CORP: Files Injunction Case Against Nadecor Over Project S I N G A P O R E G A CAPITAL: Members' Final Meeting Set for March 26 GOLDEN AARON: Creditors' Proofs of Debt Due March 26 SAGE INTERNATIONAL: Creditors' Proofs of Debt Due March 24 X X X X X X X X * S&P Raises Ratings on Five Tranches of Asia-Pacific CDOs * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= CENTRO PROPERTIES: First Half Net Loss Narrows to AU$63.2 Million ----------------------------------------------------------------- Centro Properties Group reported a net loss of AU$63.2 million for the half year ended December 31, 2009, compared with a net loss of AU$2.4 billion a year earlier. The company reported underlying profit of AU$82.7 million for the half year, up 15% compared to AU$71.6 million for the previous corresponding period. Centro Chief Executive Officer Glenn Rufrano said "It has been a busy and significant period for Centro. Having stabilized the business on many fronts and renewed the Board, we have now taken the next steps required to move Centro forward. "The appointment of Robert Tsenin as new Group CEO and the appointment of advisers to undertake an assessment of a potential restructure provide the basis of long term strategies. We expect the assessment phase to be completed by mid calendar year 2010." During the period, Centro successfully completed the extension and refinancing of AU$1.4 billion of debt across its managed funds. "These refinancings are a pleasing result for the group and we are already in discussions with our lenders around debt maturities over the coming 12 months, the most significant of which is the Super LLC debt maturity in December 2010," Mr. Rufrano said. Key Financial Information Centro's balance sheet was more stable for the half year, with the impact of the significantly lower asset revaluations slightly exceeded by gains attributable to foreign exchange movements. Net tangible assets per ordinary security (NTA) was -$2.87 at Dec. 31, 2009, a 4% improvement from -$2.91 at June 30, 2009. Net cash flow prior to debt repayment for the six months ended December 31, 2009, was AU$42 million and AU$33 million of senior debt was repaid during the period. Managed Property Portfolio Information Centro's Australasian portfolio continued to perform solidly despite the challenging operating environment. A stabilized NOI growth of almost 2% for the half year ended December 31, 2009, is at the higher end of the range forecast in June 2009 of between one and two per cent. Occupancy levels increased to 99.2% from 99.0% at June 2009 and are now at a comparable level to those of 12 months ago. Centro General Manager of Property Operations for Australia Mark Wilson said: "NOI growth can be attributed to growth from annual rent reviews and management of controllable costs. Our improved occupancy levels can be directly attributed to having an experienced and now fully resourced leasing team in place which has been strongly focused on improving occupancy at centres." "We anticipate that the next six months will remain challenging in the absence of further government stimulus which had a positive impact on our portfolio in 2009. We will continue to build on the solid foundation achieved in the first half of FY10 and remain focused on further improving occupancy levels and sustaining NOI growth." Centro's US stabilized portfolio at December 31, 2009, was 88.6% leased compared with 88.7% for June. Although same store NOI growth was -5.2% for the half year there has been a steadily improving trend during this period. Property Valuations Between June 2009 and December 2009 property values in the US declined by 4.5%. Australian property values decreased by 1.1% over the same period. "The Australian and US valuation declines for the half year ended December 31, 2009, compared with -5.9% and -13.9% over the prior six months respectively, indicates a substantial change in market sentiment," Mr. Rufrano said. About Centro Properties Centro Properties Group (ASX:CNP)-- http://www.centro.com.au/-- is a retail investment organization specializing in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management of US$24.9 billion. * * * Centro owes its creditors as much as AU$6.6 billion and its deadline to repay these debts has been extended four times since December 2007, when the company's market value plunged. On Jan. 16, 2009, the TCR-AP reported that Centro Properties Group obtained a three-year extension on its AU$3.9 billion of the senior syndicated debt facility. It also obtained extension of the debt facilities within Super LLC (Centro's US joint venture investment with Centro Retail Trust (CER) and CMCS 40). OCCUPATIONAL & MEDICAL: Chapter 15 Case Summary ----------------------------------------------- Chapter 15 Petitioner: David Stimpson, foreign representative Chapter 15 Debtor: Occupational & Medical Innovations Limited Unit 1, 12 Booran Drive Slacks Creek Brisbane,Queensland 4127 Australia Chapter 15 Case No.: 10-60181 Chapter 15 Petition Date: February 23, 2010 Court: Eastern District of Texas (Tyler) Chapter 15 Petitioner's Counsel: Bradley L. Drell, Esq. Gold, Weems, Bruser, Sues & Rundell P.O. Box 6118 Alexandria, LA 71307-6118 Tel: (318) 445-6471 Fax: (318) 445-6476 Email: bdrell@goldweems.com Estimated Assets: US$1,000,001 to US$10,000,000 Estimated Debts: US$100,000,001 to US$500,000,000 STORM FINANCIAL: BoQ Won't Follow CBA with Compensation Scheme -------------------------------------------------------------- Sara Rich at The Australian reports the Bank of Queensland will not follow the Commonwealth Bank's move to enter into a AU$200 million compensation scheme for clients of the failed Storm Financial group, raising the prospect of a court challenge. According to The Australian, a spokeswoman for the bank said BoQ had been dealing with its Storm-affected customers, said to be about 260, individually for some time and believed that a personal approach was the most appropriate. "To date we have provided hardship relief to more than 90 Storm- affected BoQ customers, more than half of whom have been granted long-term loan variations outside our normal hardship process, and we will continue to assist customers who are experiencing genuine financial hardship as a result of the collapse of Storm," the spokeswoman told The Australian. But Damian Scattini, a lawyer with Slater & Gordon, which is suing BoQ on behalf of former Storm clients for alleged inappropriate lending practices, urged the bank "to adopt a sensible attitude to their responsibilities," The Australian relates. The Troubled Company Reporter-Asia Pacific reported Wednesday that the Commonwealth Bank of Australia said it has finalized a framework to resolve claims brought by customers affected by the collapse of Storm Financial Ltd. The framework will operate within the Storm Resolution Scheme, announced by the Bank in June 2009, in which over 2,000 affected customers are participating. The Bank agreed the framework with law firm Slater & Gordon based on an assessment of six test cases, representing a variety of scenarios across home and margin lending, by the Independent Panel established by the Bank to oversee the Scheme. The Panel, comprising retired High Court Justice Ian Callinan AC, retired Federal Court Justice Roger Gyles AO QC and Robert Gotterson QC, has stated that, in its opinion, the framework constitutes a fair and reasonable basis for the resolution of claims. Commonwealth Bank CEO Ralph Norris said recipients of offers would still retain all their rights under the Scheme, including the ability to have their claim evaluated and determined by the Independent Panel if they wish. The Storm Investors Consumer Action Group gave a cautious endorsement of the settlement -- urging recipients to read the fine print before agreeing -- and called for other banks involved with Storm Financial, including the Bank of Queensland and the Macquarie Group, to follow the Commonwealth Bank's lead, The Australian reported. About Storm Financial Storm Financial Limited -- http://www.stormfinancial.com.au/-- operates in the Australian wealth management industry. The company manages over one trillion dollars in investment fund assets for over nine million investors, distributed through investment administration providers and financial adviser. The funds are invested through different investment products and structures, including superannuation, nonsuperannuation managed funds and life insurance products. Non-superannuation managed funds, which form the majority of Storm's products, total approximately 26.5% of total investment fund assets in Australia, as of June 30, 2007. * * * As reported in the Troubled Company Reporter-Asia Pacific on Jan. 14, 2009, Storm Financial appointed Worrells Solvency & Forensic Accountants as voluntary administrators after the Commonwealth Bank of Australia demanded debt repayment of around AU$20 million. Storm later closed its business and fired all of its 115 staff. The closure, the company's administrators said, was due to the significant reduction in Storm's income resulting in trading losses being incurred "at a rate which the company could no longer absorb." The TCR-AP reported on Jan. 22, 2009, that the CBA, Storm's largest creditor, lodged a AU$27.09 million debt claim at a first meeting of the company's creditors on January 20. The group's remaining creditors are owed AU$51 million, plus a provision for dividends of AU$10 million. On March 27, 2009, the TCR-AP reported that the Australian Securities and Investments Commission won its bid to liquidate Storm Financial Group after the Federal Court ruled that the Company be wound up. Federal court Justice John Logan appointed Ivor Worrell and Raj Khatri of Worrells Solvency and Forensic Accountants as liquidators for the Company. ========= C H I N A ========= CHINA ARCHITECTURAL: Enters Into Conditional Waiver Deal -------------------------------------------------------- China Architectural Engineering, Inc., has entered into a waiver agreement with the bondholders applicable to the proposed acquisition of a majority stake in Shanghai ConnGame Network Co. Ltd. As stated in the Company's previous press release dated December 14, 2009, the acquisition of a 60% equity interest of ConnGame and the issuance of the 25 million CAEI shares are subject to a number of closing conditions, including but not limited to the bondholders' waiver of their rights to a reduction in the conversion price of the Company's outstanding convertible bonds and exercise price of the related warrants as a result of the proposed acquisition. On February 24, 2010, the bondholders entered into an Amendment and Waiver Agreement and agreed to waive their rights to a reduction in the bond conversion prices and warrant exercise prices for up to three months. In exchange, the Company agreed to make payments of the bonds' interest in arrears and interest due in April 2010, in addition to repayment of a separate banking facility. Completion of the proposed acquisition is subject to negotiation and execution of a definitive equity transfer agreement, regulatory approvals, and other customary closing conditions. At closing of the acquisition and upon receiving 25 million CAEI shares, First Jet will become CAE's largest shareholder, and it is expected that Mr. Jun Tang, who is First Jet's largest shareholder, will be appointed CAE's new Chairman of the Board. Mr. Tang commented, "I greatly look forward to joining China Architectural Engineering's board of directors as its new Chairman. I am highly impressed with Mr. Luo's business and technical vision to leverage the unique, complementary strengths of CAE and ConnGame to transform CAE into a high-end architectural design consultant and service provider, while also expanding into China's growing online game market. I am convinced that CAE and ConnGame share a common culture of technical excellence, and therefore, I am confident that the eventual integration of our businesses and technologies will result in a greater new CAE." Mr. Ken Yi Luo, the Company's Chief Executive Officer and Chairman, commented, "We are appreciative of the support of our bondholders and excited by the prospect of soon welcoming Mr. Tang as our new Chairman. Mr. Tang's proven leadership, deep technical expertise, and prior success in the gaming industry will be invaluable in helping to integrate and transform the new CAE, enabling us to not only continue to take greater advantage of our core architectural engineering and design market but also China's large and rapidly growing online game market. I truly look forward to working closely with Mr. Tang to grow our combined businesses and to deliver greater value to our supportive shareholders." Overview of Conversion Price of the Bonds Pursuant to the trust deeds that govern the Company's outstanding Variable Rate Convertible Bonds due 2012 (the "2007 Bonds") and 12% Convertible Bonds due 2011 (the "2008 bonds," and collectively with the 2007 Bonds, the "Bonds") and the warrants to purchase 300,000 shares of common stock of the Company expiring 2013 (the "2008 Warrants"), the conversion price of the Bonds and the exercise price of the 2008 Warrants shall adjust downward if the Company issues shares at a per share price that is less than the current conversion price of the Bonds or exercise price of the 2008 Warrants. The 2007 Bonds are currently exercisable at $2.45 per share and the 2008 Bonds and 2008 Warrants are currently convertible and exercisable at $6.35 per share. According to the agreed upon terms of the acquisition, one of the conditions to the acquisition is the bondholders agreeing to waive their rights to a reduction in the conversion price of the Bonds and exercise price of the 2008 Warrants due to the issuance of the Shares. About Shanghai ConnGame Shanghai ConnGame, founded and led by seasoned experts with extensive previous success in China's online game industry, develops and operates MMORPGs in China. Leveraging its innovative game engines, scalable development platforms, and accomplished production teams, ConnGame focuses on self-developed MMORPGs game titles that are based on China's iconic characters and nostalgic epochs. About China Architectural China Architectural Engineering, Inc. is a leader in the design, engineering, fabrication and installation of high-end curtain wall systems, roofing systems, steel construction systems, and eco- energy systems. Founded in 1992, CAEI has maintained its market leadership by providing timely, high-quality, reliable, fully integrated, and cost-effective solutions. Collaborating with world-renowned architects and building engineers, the Company has successfully completed over one hundred large, complex and unique projects worldwide, including numerous award-winning landmarks across Asia's major cities. CHINA EASTERN: In Talks with Three Global Airline Alliances ----------------------------------------------------------- China Eastern Airlines Corp. is in talks with Star Alliance and the other two global airline industry alliances as it moves to boost its profile, Reuters reports citing a senior company executive. The executive, who asked not to be identified because of the sensitivity of the matter, told Reuters that China Eastern, the only one of the country's top three carries without a global affiliation, is exploring opportunity to join one of the industry alliances, which also includes Star Alliance and SkyTeam Alliance. AMR Corp., the parent of American Airlines Inc., is in advanced talks with China Eastern Airlines to bring the latter into the Oneworld Alliance, AMR's CFO Tom Horton told Reuters earlier this week. But the China Eastern executive said the carrier did not have a preferred partner so far, Reuters relates. "We are holding parallel discussions with all three groups currently. We hope to join one of them eventually but we don't know which one yet," Reuters quoted the China Eastern executive as saying. January Pre-Tax Loss Dow Jones Newswires that China Eastern Airlines recorded a pretax loss of CNY143 million (US$20.9 million) in January, narrowing by CNY101 million from a year earlier. A person familiar with the situation told Dow Jones Newswires that the preliminary financial results include those of Shanghai Airlines Co., which China Eastern has recently taken over. Denies Stake Sale China Eastern Board Secretary Luo Zhuping denied an Emirates Business report that the carrier plans to sell a 20% stake to investors in the Middle East and Europe, according to Bloomberg News. 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. GENERAL MOTORS: Considers Several Potential Bidders for Hummer -------------------------------------------------------------- General Motors Co. is considering expressions of interest from several potential buyers for its Hummer brand after the planned sale to China's Sichuan Tengzhong Heavy Industrial Machinery collapsed, Bloomberg News reports citing five people briefed on the discussions. Dow Jones Newswires, citing a person familiar with the situation, says the two of the latest suitors previously submitted bids for Hummer, which GM turned down in favor of a deal with Sichuan Tengzhong. Dow Jones' source declined to say who the offers are from. According to Bloomberg, sources said the automaker may still wind down Hummer because most of those interested have done little or no due diligence on the unit. GM expects some of the parties to drop out soon, the people said. Nick Richards, a Hummer spokesman, told Bloomberg that GM won't comment on speculation about possible buyers. "If there are viable alternatives for all or part of the brand during wind down, we will consider them," Bloomberg quoted Mr. Richards as saying. Bloomberg relates one of the people, a GM executive, said none of the interested parties has shown that they have cash in hand. The automaker won't sell Hummer without seeing some money up front, as GM mandated when it was negotiating an agreement to sell the Saab brand to Spyker Cars NV, the executive said. As reported yesterday by the Troubled Company Reporter-Asia Pacific, Bloomberg said General Motors will close Hummer, the maker of military-inspired sport-utility vehicles, after Sichuan Tengzhong couldn't win Chinese approval to buy the unit. According to Bloomberg, Mr. Richards said winding down the brand will take several months. Some of the 3,000 people now employed at Hummer work on other vehicles, so GM doesn't know how many jobs will be lost, he said. Tengzhong said Thursday it was "unable to obtain clearance of the transaction from the Chinese regulators within the proposed deal time frame." The Troubled Company Reporter reported on Feb. 12, 2010, that China's Sichuan Tengzhong Heavy Industrial Machinery Co., and General Motors Co. have agreed to postpone until the end of February 2010 a definitive agreement that will allow the Chinese car manufacturer to acquire GM's all-terrain Hummer brand, GM officials told Bloomberg on January 31, 2010. The parties have agreed to extend the January 31 deadline as they await Beijing's approval for the deal to proceed. Sources close to the deal commented that one major challenge that the sale has to go through is to convince Chinese regulators that Hummer can make trucks that are better in terms of fuel and environment conservation than its current lineup, The Wall Street Journal said on February 2. About General Motors General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At September 30, 2009, GM had US$107.45 billion in total assets against US$135.60 billion in total liabilities. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ================ H O N G K O N G ================ ALLIED SERVICES: Court Enters Wind-Up Order ------------------------------------------- The High Court of Hong Kong entered an order January 11, 2010, to wind up the operations of Allied Services Company Limited. The company's liquidators are Ho Man Kit Horace and Kong Sze Man Simone. ASIA MASTER: Court to Hear Wind-Up Petition on March 10 ------------------------------------------------------- A petition to wind up the operations of Asia Master Limited will be heard before the High Court of Hong Kong on March 10, 2010, at 9:30 a.m. The Petitioner's solicitor is: Matthew Cheung Department of Justice 2nd Floor, High Block Queensway Government Offices 66 Queensway, Hong Kong BIG INCOME: Court to Hear Wind-Up Petition on March 17 ------------------------------------------------------ A petition to wind up the operations of Big Income Investment Limited will be heard before the High Court of Hong Kong on March 17, 2010, at 9:30 a.m. BOMEITI LIMITED: Court Enters Wind-Up Order ------------------------------------------- The High Court of Hong Kong entered an order February 1, 2010, to wind up the operations of Bomeiti Limited. The company's liquidators are Ho Man Kit Horace and Kong Sze Man Simone. CEDAR BASE: Wardell and Chan Step Down as Liquidators ----------------------------------------------------- James Wardell and Chan Wai Dune Charles stepped down as liquidators of Cedar Base Electronic Limited on February 23, 2010. CHECKERS LIMITED: Provisional Liquidators Appointed --------------------------------------------------- Edward Simon Middleton, Patrick Cowley and Kevin Roy Mawer of KPMG LLP on December 23, 2009, were appointed as provisional liquidators of Checkers Limited. The liquidators may be reached at: Edward Simon Middleton Patrick Cowley Prince's Building, 8th Floor 10 Chater Road Central, Hong Kong Kevin Roy Mawer One Embankment Neville Street, Leeds LSA 4DW United Kingdom DIANOOR INTERNATIONAL: Provisional Liquidators Appointed -------------------------------------------------------- Edward Simon Middleton, Patrick Cowley and Kevin Roy Mawer of KPMG LLP on December 23, 2009, were appointed as provisional liquidators of Dianoor International Limited. The liquidators may be reached at: Edward Simon Middleton Patrick Cowley Prince's Building, 8th Floor 10 Chater Road Central, Hong Kong Kevin Roy Mawer One Embankment Neville Street, Leeds LSA 4DW United Kingdom DIANOOR JEWELCRAFT: Provisional Liquidators Appointed ----------------------------------------------------- Edward Simon Middleton, Patrick Cowley and Kevin Roy Mawer of KPMG LLP on December 23, 2009, were appointed as provisional liquidators of Dianoor Jewelcraft Limited. The liquidators may be reached at: Edward Simon Middleton Patrick Cowley KMPG Prince's Building, 8th Floor 10 Chater Road Central, Hong Kong Kevin Roy Mawer KMPG LLP One Embankment Neville Street, Leeds LSA 4DW United Kingdom EASEFUL STRATEGIC: Li and Tsang Appointed as Liquidators -------------------------------------------------------- Li Man Wai and Tsang Lai Fun of Raymond Li & Co. on February 3, 2010, were appointed as liquidators of Easeful Strategic Limited. The liquidators may be reached at: Li Man Wai Tsang Lai Fun Room 1001, 10th Floor Tai Yau Building 181 Johnston Road Wanchai, Hong Kong FTE LOGISTICS: Arboit and Blade Appointed as Liquidators -------------------------------------------------------- Bruno Arboit and Simon Richard Blade on January 22, 2010, were appointed as liquidators of FTE Logistics International Limited. The liquidators may be reached at: Bruno Arboit Simon Richard Blade China Merchants Tower, 12/F Shun Tak Centre 168-200 Connaught Road Central, Hong Kong LEHMAN BROTHERS: Hong Kong Agency Probing 1,056 Remaining Cases --------------------------------------------------------------- The Hong Kong Monetary Authority (HKMA) announced that up to 11 February 2010, there were 12,923 complaint cases concerning Lehman-Brothers-related investment products which have been resolved by a settlement agreement reached under section 201 of the Securities and Futures Ordinance and 819 cases through the enhanced complaint-handling procedures required by the settlement agreement. Together with the 2,812 cases closed because insufficient prima facie evidence of misconduct was found after assessment or no sufficient grounds and evidence were found after investigation, the handling of 16,554 complaints received have now been completed. Currently, 1,056 Lehman-Brothers-related complaint cases (including minibond cases) are under disciplinary consideration after detailed investigation by the HKMA. Proposed disciplinary notices are being prepared in respect of 757 such cases and proposed disciplinary notices or decision notices have been issued in respect of another 299 cases. Adding these 1,056 cases to those the handling of which has already been completed, investigation work has finished for 81% of complaint cases received. 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) ========= I N D I A ========= AMIT MOTORCYCLES: CRISIL Places 'B+' Rating on INR40MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its 'B+/Stable' rating to Amit Motorcycles Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR40 Million Cash Credit Facility B+/Stable (Assigned) INR50 Million Inventory Funding B+/Stable (Assigned) Facility The rating reflects AMPL's below-average capital structure and debt protection metrics, limited bargaining power with its principal, Hero Honda Motors Ltd, and exposure to intense competition in the automotive dealership market. These rating weaknesses are partially offset by the benefits that AMPL derives from its promoters' experience, and by its established relationship with HHML. Outlook: Stable CRISIL believes that AMPL will continue to benefit from its strong market position as HHML's dealer in Kolkata. The outlook may be revised to 'Positive' in case of a significant and sustained increase in AMPL's sales and operating margin, or improvement in capital structure. Conversely, the outlook may be revised to 'Negative' if there is a steep decline in the company's revenue and profitability, or if it undertakes a large debt-funded capital expenditure programme, thereby adversely affecting its financial risk profile. Amit Motorcycles Pvt Ltd is an authorized dealer of two-wheelers for HHML in Howrah (West Bengal) and Kolkata. Incorporated in 1992, the company set up its first authorised HHML two-wheeler dealership in Howrah, and a second dealership in South Kolkata in 1996. Currently the company has 25 HHML showrooms across Howrah and Kolkata. AMPL reported a profit after tax (PAT) of INR0.20 million on net sales of INR680 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR1.30 million on net sales of INR712 million for 2007-08. BAAHUBALI FERRO: CRISIL Assigns 'B-' Rating on Various Bank Debts ----------------------------------------------------------------- CRISIL has assigned its 'B-/Stable/P4' ratings to the bank facilities of Baahubali Ferro Tech & Power Pvt Ltd. Facilities Ratings ---------- ------- INR80.0 Million Overdraft B-/Stable (Assigned) INR75.0 Million Term Loan B-/Stable (Assigned) INR35.0 Million Proposed LT Bank Loan Facility B-/Stable (Assigned) INR10.0 Million Letter of Credit P4 (Assigned) The ratings reflect BFTPL's exposure to risks relating to a modest scale of operations, volatility in raw material prices, and cyclicality in the ferro alloy industry. These weaknesses are partially offset by the benefits BFTPL derives from its promoters' experience in the ferro alloy industry and from its established customer base. Outlook: Stable CRISIL believes that BFTPL will maintain a stable business profile over the medium term backed by the promoters' experience and expertise in the ferro alloy industry. The outlook may be revised to 'Positive' if BFTPL's cash accruals increase significantly, backed by steady and significant improvement in its operating margin. Conversely, the outlook may be revised to 'Negative' if the company's deterioration in the company profitability results in weakening of debt protection measures. About Baahubali Ferro Incorporated in 2003 by Mr. Ratanlal Jain, his son, Mr. Ashok Jain, and their family, Baahubali Ferro Tech & Power Pvt Ltd. manufactures silico manganese, mild steel ingots, ferro silicon, ferro manganese, and thermo-mechanically treated (TMT) bars. The company's only manufacturing unit, with an installed capacity of 5000 million tonnes of mild steel ingots per month and 8500 million tonnes of ferro alloys per month, is in Durgapur (West Bengal). BFPL reported a profit after tax (PAT) of INR1.3 million on net sales of INR887 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR1.3 million on net sales of INR251 million for 2007-08. BENARA BEARINGS: CRISIL Assigns Junk Ratings on Various Debts ------------------------------------------------------------- CRISIL has assigned its ratings of 'D/P5' to the bank facilities of Benara Bearings & Pistons Ltd. The ratings reflect delay by BBPL in repayment of term loan obligations owing to weak liquidity. Facilities Ratings ---------- ------- INR45.0 Million Cash Credit Limit D (Assigned) INR25.0 Million Cash Credit Book Debt D (Assigned) INR10.0 Million Standby Line of Credit D (Assigned) INR9.7 Million Term Loan D (Assigned) INR2.5 Million Long Term Facility D (Assigned) INR6.0 Million Export Packing Credit P5 (Assigned) INR6.0 Million Foreign Bill Purchase P5 (Assigned) INR21.5 Million Bank Guarantee P5 (Assigned) INR1.0 Million Letter of Credit P5 (Assigned) BBPL, a part of the Benara group, manufactures engine bearings, bushes, pistons, and pins for stationary diesel engines, primarily, used in the agriculture segment. The company also trades in engine parts for two- and three-wheelers. BBPL reported a net loss of INR1.9 million on net sales of INR225 million for 2008-09 (refers to financial year, April 1 to March 31), as against a profit after tax (PAT) of INR3.4 million on net sales of INR232 million for 2007-08. FAIRY FOOD: Weak Liquidity Prompts CRISIL 'C' Ratings ----------------------------------------------------- CRISIL has assigned its 'C/P4' ratings to the bank facilities of Fairy Food Products Pvt Ltd, which is part of the Fairy group. Facilities Ratings ---------- ------- INR30.00 Million Cash Credit C (Assigned) INR10.00 Million Packing Credit* C (Assigned) INR100.00 Million Packing Credit P4 (Assigned) INR80.00 Million Bill Purchase- P4 (Assigned) Discounting Facility INR75.00 Million Letter of Credit P4 (Assigned) INR2.50 Million Bank Guarantee P4 (Assigned) * Interchangeable with cash credit facility The ratings reflect the delays by one of its group entities Hayath Foods in servicing its term loans; the delays have been caused by weak liquidity because of low cash accruals and large working capital requirements. The ratings also reflect the Fairy group's below-average financial risk profile and concentration in revenue profile. These rating weaknesses are partially offset by the Fairy group's established market position in the fruit processing industry. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Fairy Food, Hayath Foods, Navaras Food Products Ltd, Safa Food Products Pvt Ltd, and Sreenivasa Processed Foods, collectively referred to as the Fairy group. This is because all these entities are in the same line of business, have intra-group operational and financial linkages, including fungible cash flows, and are under a common management. About the Group The Fairy group consists of five entities that manufacture fruit pulp from mango and guava. The Bengaluru-based group has a total capacity of 80,640 tonnes per annum. It is part of the larger Aga group, formed in 1968 by Mr. Syed Mateen Aga, which is into trading in fruits and manufacturing fruit pulp. Around 75 per cent of the Fairy group's revenues come from exports, almost entirely to the Middle East. The Fairy group reported a profit after tax of INR10 million on net sales of INR487 million for 2008-09 (refers to financial year, April 1 to March 31), against a net loss of INR2 million on net sales of INR217 million for 2007-08. HAYATH FOODS: Delays in Loan Repayment Cues CRISIL Junk Ratings --------------------------------------------------------------- CRISIL has assigned its 'D/P5' ratings to the bank facilities of Hayath Foods, which is part of the Fairy group. Facilities Ratings ---------- ------- INR51.60 Million Long-Term Loan D (Assigned) INR10.00 Million Cash Credit D (Assigned) INR45.00 Million Packing Credit P5 (Assigned) INR50.00 Million Bill Purchase- P5 (Assigned) Discounting Facility INR45.00 Million Letter of Credit P5 (Assigned) INR15.00 Million Bank Guarantee* P5 (Assigned) *Includes Proposed Limit of INR20 million The ratings reflect the delays by the firm in servicing its term loans; the delays have been caused by weak liquidity because of the firm's low cash accruals and large working capital requirements. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Hayath Foods, Fairy Food Products Pvt Ltd, Navaras Food Products Ltd, Safa Food Products Pvt Ltd, and Sreenivasa Processed Foods, collectively referred to as the Fairy group. This is because all these entities are in the same line of business, have intra-group operational and financial linkages, including fungible cash flows, and are under a common management. About the Group The Fairy group consists of five entities that manufacture fruit pulp from mango and guava. The Bengaluru-based group has a total capacity of 80,640 tonnes per annum. It is part of the larger Aga group, formed in 1968 by Mr. Syed Mateen Aga, which is into trading in fruits and manufacturing fruit pulp. Around 75% of the Fairy group's revenues come from exports, almost entirely to the Middle East. The Fairy group reported a profit after tax of INR10 million on net sales of INR487 million for 2008-09 (refers to financial year, April 1 to March 31), against a net loss of INR2 million on net sales of INR217 million for 2007-08. INFOSPECTRUM INDIA: CRISIL Puts 'BB+' Rating on INR42.9MM Loan -------------------------------------------------------------- CRISIL has assigned its ratings of 'BB+/Stable/P4+' to the bank facilities of Infospectrum India Pvt Ltd. Facilities Ratings ---------- ------- INR42.9 Million Rupee Term Loan BB+/Stable (Assigned) INR40.0 Million Cash Credit BB+/Stable (Assigned) INR36.1 Million Proposed LT Bank BB+/Stable (Assigned) Loan Facility INR1.0 Million Bank Guarantee P4+ (Assigned) The ratings reflect Infospectrum's small net worth and average scale of operations in information technology (IT) products and services field. This rating weakness is partially offset by Infospectrum's strong financial risk profile and its business risk profile supported by strong customer relationships. Outlook: Stable CRISIL believes that Infospectrum will continue to benefit from stable relationships with key clients and generate comfortable operating margins over the medium term. The outlook may be revised to 'Positive' if Infospectrum's scale of operations increases substantially while maintaining its profitability. Conversely, the outlook may be revised to 'Negative' if Infospectrum's profitability deteriorates, or if it contracts large debt to fund its planned capital expenditure, thereby adversely affecting its financial risk profile. About Infospectrum India Incorporated in 2000 as Concretio India Pvt Ltd, Infospectrum acquired its current name in September 2003. The company undertakes outsourced IT product development projects, catering to numerous product development entities in the US and Europe, operating in the fields of marine logistics, science, and engineering. Infospectrum has also developed an enterprise resource planning tool, Quick School, for academic institutions. Infospectrum reported a profit after tax (PAT) of INR21 million on net sales of INR245 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR20 million on net sales of INR166 million for 2007-08. INTELLIGENT INFRASTRUCTURE: Fitch Assigns 'BB-' National Rating --------------------------------------------------------------- Fitch Ratings has assigned India-based Intelligent Infrastructure Ltd a National Long-term rating of 'BB-(ind)'. The Outlook is Stable. Fitch has also assigned a rating of 'BB-(ind)' to IIL's long-term loan aggregating INR280.09 million. The rating reflects the expected completion of the second tower of IIL's Globsyn Crystal project by March 2010, In addition, IIL's rating benefits from good quality clients like Airtel ('BBB-'/Stable) and the location advantage enjoyed by the Globsyn Crystal project, which is located at Saltlake Kolkata Electronic Complex. It touts excellent connectivity and is in the neighborhood of top IT (Information Technology) firms. However, IIL's rating remains constrained by the insufficiency of cash flows from the area the company has leased out to date (126,925 square feet) affecting its ability to service loans within the scheduled timeframe. Though 69% of the total rentable area for the Globsyn Crystal project has yet to be leased out, term sheets for two floors consisting 65,790 square feet have been signed. The transaction is expected to be completed by March 2010, upon when IIL will receive six-month rent as a deposit and register the lease deed, which will reduce the area not leased to 52%. IIL's rating was further constrained by the downturn of India's real estate sector, particularly the commercial property segment, which has been impacted from the lack of demand from corporate clients mainly in the IT/ITES sector. At the same time, the commercial segment is witnessing signs of over supply, which may lead to a decline in rental rates during FY10. The agency will continue to monitor the progress of the Globsyn Crystal project. Should there be any material delay in the completion of construction, lower than expected leasing/selling out the constructed spaces, a fall in rentals rates and/or cancellation of any existing contracts, a negative rating action may be taken. On the other hand, the successful leasing of unsold area that leads to a sustained increase in revenues, stable profitability and increase in rentals rates, will be positive for IIL's rating. IIL is a special purpose vehicle formed to execute a project called Globsyn Crystals by the four partners - Sureka group (26.7% stake), Shrachi group (22.5% stake), New Vernon Private Equity Ltd. (50% stake) and Pawan Choriwal (0.8% stake). One of the two towers has been completed and 40% of it has already been occupied. The second tower is expected to be completed by the end of March 2010. The estimated project cost is INR976.4 million, which is financed by promoter's contribution of INR402.5 million, bank loans of INR280.1 million and balance sum of INR293.1 million by internal accruals through sale/lease of constructed area. The project has a total area of 493,128 sq. ft, of which 86,987 sq. ft has been given to Globsyn Technologies Ltd., along with the premium of INR107.33 million as consideration for land through the under-lease agreement between GTL and IIL. In addition, a balance area of 406,141 sq. ft will be given to IIL for leasing out. IIL booked revenues for the first time in FY09 (INR280.5 million) with high EBITDA margin of 61.3%. JAI SHIV: Delay in Loan Repayment Cues CRISIL Junk Ratings ---------------------------------------------------------- CRISIL has assigned its ratings of 'D/P5' to Jai Shiv Aluminium Pvt Ltd's bank facilities. The ratings reflect the delay by JSAPL in the repayment of its term loan obligations because of weak liquidity. Facilities Ratings ---------- ------- INR100.0 Million Cash Credit Limit D (Assigned) INR63.3 Million Term Loan* D (Assigned) INR10.0 Million Letter of Credit P5 (Assigned) INR5.5 Million Bank Guarantee P5 (Assigned) * Including a proposed amount of INR7.30 Million Incorporated in 2006, JSAPL (formerly JSK Aluminium Pvt Ltd) manufactures aluminium extrusion profiles used in industrial, automotive, railways, household, and other applications. The company's manufacturing facility in Dera Bassi (Punjab) has capacity of 3600 metric tonnes per annum. JSAPL reported a profit after tax (PAT) of INR1.8 million on net sales of INR242 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR6.8 million on net sales of INR188 million for 2007-08. KINGFISHER AIRLINES: Set to Join oneworld Alliance -------------------------------------------------- Kingfisher Airlines is set to join oneworld after signing a memorandum of understanding as its first step towards full membership of the airline alliance, subject to Indian regulatory approval. "The agreement was concluded at a meeting between Kingfisher Airlines' Chairman Vijay Mallya and Chief Executives from oneworld's 11 existing member airlines," Kingfisher said in a statement. Kingfisher Airlines also applied Tuesday to India's Ministry of Civil Aviation for authority to proceed with its membership of oneworld. A target date for Kingfisher Airlines to join the alliance will be confirmed once this approval is gained. The process to bring any airline on board normally takes around 18 months to complete, so Kingfisher Airlines could be expected to start flying as part of oneworld during 2011. Kingfisher Airlines' addition to oneworld will link India's most extensive domestic network with oneworld's unrivalled global network, as the only alliance with airlines based on every continent. It will add 58 cities to the oneworld map ? all of them in India. This will expand oneworld's network to 800 destinations in almost 150 countries, served by a combined fleet of 2,350 aircraft operating some 9,000 flights a day, carrying some 340 million passengers a year. British Airways will support Kingfisher Airlines through its alliance implementation programme, as its oneworld sponsor. 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. MAHIMA FIBRESL: CRISIL Reaffirms 'BB-' Rating on Various Loans -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Mahima Fibres Pvt Ltd continue to reflect MFPL's weak financial risk profile marked by small net worth, high gearing, weak debt protection metrics and low operating margin, and vulnerability to volatility in cotton prices. These rating weaknesses are partially offset by MFPL's promoters' experience in the textile industry. Facilities Ratings ---------- ------- INR150.0 Million Cash Credit Limit BB-/Stable (Reaffirmed) INR509.7 Million Term Loan BB-/Stable (Reaffirmed) INR30.3 Million Proposed LT Facility BB-/Stable (Reaffirmed) INR140.0 Million Letter of Credit P4+ (Reaffirmed) Outlook: Stable CRISIL expects MFPL's financial risk profile to remain weak over the medium term because of MFPL's high gearing and weak debt protection metrics. The outlook may be revised to 'Positive' in case of more-than-expected improvement in MFPL's profitability, leading to more-than-expected cash accruals, and consequently, improvement in capital structure. Conversely, the outlook may be revised to 'Negative' if the company's profitability declines, or if it undertakes a larger-than-expected debt-funded capital expenditure program, resulting in deterioration in its financial risk profile. About Mahima Fibres Incorporated in 1998, Mahima Fibres Pvt Ltd was initially into cotton ginning business. The company promotes organic cotton farming. The promoter, Mr. Ashok Kumar Doshi, has been in the business since 1974. In 2005-06 (refers to financial year, April 1 to March 31), MFPL ventured into cotton spinning by establishing a spinning unit with 13 ring frames and 15,600 spindles. Over the past few years, the company has been actively trading in cotton and yarn; it primarily caters to the markets of Bangladesh, Pakistan, Israel, Germany, the UK, and other European nations. During 2008-09, the company enhanced its spinning capacity by 10,800 spindles. It plans to add 15,600 spindles in 2010-11 at a total outlay of around INR400 million. For 2008-09, MFPL reported a profit after tax (PAT) of INR34.1 million on revenues of INR1271.4 million, against a PAT of INR24.3 million on revenues of INR1282.5 million for 2007-08. MERRILL IMPEX: Low Profitability Cues CRISIL 'BB-' Ratings ---------------------------------------------------------- CRISIL has assigned its ratings of 'BB-/Stable/P4' to the bank facilities of Merrill Impex Pvt Ltd. Facilities Ratings ---------- ------- INR15 Million Cash Credit BB-/Stable (assigned) INR90 Million Letter of Credit* BB-/Stable (assigned) INR90 Million Letter of Credit P4 (Assigned) *Interchangeable with cash credit The ratings reflect Merrill's working-capital-intensive operations with high debtor risk, and weak financial risk profile marked by low profitability and small scale of operations, and lack of stable product profile and customer base. These weaknesses are partially offset by Merrill's promoters' extensive industry experience, the company's healthy revenue growth, and exposure to limited inventory risk. Outlook: Stable CRISIL believes that Merrill's financial risk profile will remain weak over the medium term because of its working-capital-intensive operations and low profitability. The outlook may be revised to 'Positive' if the company's capital structure or profitability improves significantly. Conversely, the outlook may be revised to 'Negative' in case the company contracts substantial debt for funding its investments, or in case its profitability declines. About Merrill Impex Incorporated in 2000, Merrill trades in products such as timber, coking coal, steel, and duty entitlement pass book (DEPB) licenses. It also undertakes sub-contracting work such as land development and road construction in the civil construction space. The company is managed by its promoter, Mr. U K Bagaria. Merrill's registered office is in Kolkata (West Bengal). Merrill reported a profit after tax (PAT) of INR3.3 million on an operating income of INR850.8 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR2.2 million on an operating income of INR525.2 million for 2007-08. PANSURIYA IMPEX: CRISIL Assigns 'P4' Rating on Various Bank Debts ----------------------------------------------------------------- CRISIL has assigned its 'P4+' rating to Pansuriya Impex's bank facilities. Facilities Ratings ---------- ------- INR172.0 Million Post Shipment Credit P4+ (Assigned) INR88.0 Million Packing Credit P4+ (Assigned) The rating reflects Pansuriya Impex's average financial risk profile and modest scale of operations in the intensely competitive global diamond industry. These rating weaknesses are partially offset by the benefits that Pansuriya Impex derives from its promoters' industry experience. Pansuriya Impex, set up in 2000 as a proprietorship concern by Mr. Paresh Pansuriya, was converted into a partnership firm in 2005, with members of Mr. Pansuriya's family as partners. The firm manufactures and sells cut and polished diamonds. Its manufacturing unit is at Surat, Gujarat. Pansuriya Impex reported a profit after tax (PAT) of INR8.3 million on net sales of INR1061.4 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR11.3 million on net sales of INR855.8 million for 2007-08. RAINBOW PACKAGING: Low Net Worth Prompts CRISIL 'B' Ratings ----------------------------------------------------------- CRISIL has assigned its 'B/Stable/P4' ratings to Rainbow Packaging Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR75.0 Million Cash Credit Limit B/Stable (Assigned) INR7.6 Million Term Loan B/Stable (Assigned) INR15.0 Million Letter of Credit P4 (Assigned) The ratings reflect RPPL's weak financial risk profile marked by weak debt protection measures, high gearing, and low net worth, and its small scale of operations. These rating weaknesses are partially offset by RPPL's stable, albeit low, operating margin, established relationships with customers, and strong revenue visibility. Outlook: Stable CRISIL believes that RPPL will maintain its stable revenues and operating margin backed by stable demand. However, RPPL's financial risk profile is expected to remain constrained because of its weak debt protection measures and high gearing. The outlook may be revised to 'Positive' in case of significant improvement in RPPL's capital structure, most likely because of equity infusion or improvement in operating margin. Conversely, the outlook may be revised to 'Negative' if the company takes up large debt-funded capital expenditure, leading to increased gearing and deterioration in operating margin, and consequently, cash accruals, over the medium term. About Rainbow Packaging Incorporated in 1994, Rainbow Packaging Pvt Ltd manufactures co- extruded polyethylene films (multi-layer films and lamination poly), and plastic barrels (plastic containers with storage capacity of 220 litres). The company's plant in Ahmedabad (Gujarat) has capacity to manufacture 4800 tonnes per annum (tpa) of co-extruded polyethylene films and 900 tpa of plastic barrels. The company is also involved in trading of polymer products. It can currently manufacture only three-layer films that are used for packaging of liquids with low shelf life, such as milk. RPPL is setting up a five-layer film manufacturing plant and a coating line at a total project cost of around INR9 million. The proposed capacity of this plant is 3600 tpa. RPPL reported a profit after tax (PAT) of INR3.3 million on net sales of INR315.1 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR1.5 million on net sales of INR224.4 million for 2007-08. SUMEET GEMS: Small Net Worth Prompts CRISIL 'BB' Ratings -------------------------------------------------------- CRISIL has assigned its 'BB/Stable' rating to Sumeet Gems and Jewellers Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR135.0 Million Cash Credit * BB/Stable (Assigned) * INR105.0 million of the Cash Credit limit is completely convertible into FCNR (B) The rating reflects Sumeet Gems' weak financial risk profile marked by small net worth, high gearing, and weak debt protection metrics, and susceptibility to volatility in gold prices and foreign exchange rates. The rating also factors in the company's exposure to risks related to intense competition in the gems and jewellery market. These rating weaknesses are partially offset by Sumeet Gems' strong risk mitigation strategies in its bullion trading operations. Outlook: Stable CRISIL believes that Sumeet Gems will continue to benefit from its prudent risk mitigation strategies in bullion trading operations. However, the company's financial risk profile will remain weak over the medium term. The outlook may be revised to 'Positive' if Sumeet Gems generates more-than-expected cash accruals, leading to a significant improvement in its capital structure and debt protection metrics. Conversely, the outlook may be revised to 'Negative' in case of deterioration in the company's risk mitigation strategies, or in case of further deterioration in its financial risk profile. About Sumeet Gems Sumeet Gems (formerly Sumeet Cloth Pvt Ltd) was incorporated by the Kankariya family in 2004-05 (refers to financial year, April 1 to March 31). The company markets crafted jewellery in Chhattisgarh and sells gold and silver bullion to other jewellers. Sumeet Gems was originally incorporated for undertaking the textile business, but commenced operations only in May 2005 after it was reconstituted. The company runs a three-storey jewellery showroom in Raipur (Chhattisgarh). The bullion trading business accounted for 87 per cent of Sumeet Gems' revenues, while the jewellery business accounted for around 13 per cent of its revenues, in 2008-09. Sumeet Gems reported a profit after tax (PAT) of INR6.07 million on net sales of INR4038.3 million for 2008-09, against a PAT of INR3.35 million on net sales of INR2743.2 million for 2007-08. SUNDARAM JEWELRY: CRISIL Rates Post Shipment Credit at 'P4+' ------------------------------------------------------------ CRISIL has assigned its 'P4+' rating to Sundaram Jewelry's bank facilities. Facilities Ratings ---------- ------- INR70.0 Million Post Shipment Credit P4+ (Assigned) *Includes sublimits for Bill Discounting of INR35.0 Million, Packing Credit of INR12.0 Million and Gold Loan of INR12.0 Million The rating reflects Sundaram's modest scale of operations in the diamond and jewellery industry, and exposure to risks relating to customer concentration and high build up of receivables. These rating weaknesses are partially offset by the benefits that the firm derives from its promoters' experience in the diamond trading and jewellery business. Sundaram, set up in 2005 by Mr. Vinod Desai and his nephew, Mr. Pushpak Desai as a partnership firm, is engaged in manufacture of diamond-studded gold and silver jewellery. It has a manufacturing facility in Mumbai with a capacity of around 50,000 pieces per annum. Sundaram reported a profit after tax (PAT) of INR11.8 million on net sales of INR178 million for 2008-09 (refers to financial year, April 1 to March 31) against a PAT of INR13.4 million on net sales of INR244 million for 2007-08. TATA MOTORS: Jaguar Land Rover Gets GBP340MM European Bank Loan --------------------------------------------------------------- Tata Motors said Thursday its Jaguar Land Rover unit has received a GBP340 million loan from the European Investment Bank. The facility is an 8 year amortizing loan to finance development of micro and full hybrid drive trains and research into more energy efficient car bodies for the premium car segment by Jaguar Land Rover. These activities will contribute to lower CO2 emissions and the loan was granted under the European Clean Transport Facility. The loan is structured with guarantee support from banks, with Credit Suisse working in the lead with Jaguar Land Rover and Tata Motors in arranging the structure. State Bank of India played a key role in the facility, providing a guarantee along with Bank of India and Bank of Baroda. Credit Suisse, Standard Chartered Bank, Deutsche Bank and JP Morgan are providing additional guarantees to meet EIB credit requirements. Mr. Ravi Kant, Vice Chairman of Tata Motors, said: "We are very happy with the support extended to us by the European Investment Bank, State Bank of India, Credit Suisse, and other banks. This will support the progress of turnaround in Jaguar Land Rover's business in challenging market conditions, alongside cost cutting measures, increase of volumes and the improved margins strategy currently being implemented by Jaguar Land Rover. We view Jaguar Land Rover as a key part of Tata Motors and we feel confident about its outlook for the future." Mr. Simon Brooks, European Investment Bank Vice President responsible for lending operations in the United Kingdom, said: "The EIB is pleased to be able to work closely with Tata Motors and Jaguar Land Rover to make a lasting contribution to automotive research that will enable the production of more environmentally friendly and energy efficient vehicles at a time of significant challenges for the European car industry." The EIB loan completes the last major element of the funding plan for Jaguar Land Rover, which has been an important part of Tata Motors' efforts to strengthen its group balance sheet over the past year. In 2009, the company secured over GBP500 million of funding for Jaguar Land Rover, including facilities from State Bank of India, Standard Chartered Bank, Bank of Baroda, ABC International bank, GE Capital, and Burdale Financial Limited, a subsidiary of the Bank of Ireland. Moreover, despite the very difficult financial environment since June 2008 when Jaguar Land Rover was acquired, Tata Motors had, by October 2009, completely repaid the USD 3.0 billion bridge finance facility for the acquisition of Jaguar Land Rover, through a combination of Rights Issue in 2008, issue of long maturity Non- convertible Rupee Debentures, internal cash flows, sale of investments, and issue of Global Depository Shares and Convertible Notes in October 2009. Commenting on the overall financing efforts being made by Tata Motors, Mr. C. Ramakrishnan, Chief Financial Officer of the company, said: "We have taken significant steps to meet our financing requirements and strengthen our balance sheet over a short timeframe in challenging and adverse market conditions. We are thankful to have received the support of Tata Sons, all investors and relationship banks. The business performance of our Indian and international operations have improved significantly and we feel comfortably positioned for the future." About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on Aug. 6, 2009, Standard & Poor's Ratings Services said that it had lowered its long term corporate credit rating on India-based Tata Motors Ltd. to 'B' from 'B+'. The outlook is negative. At the same time, Standard & Poor's lowered the issue rating on the company's senior unsecured notes to 'B' from 'B+'. Both ratings were removed from CreditWatch, where they were placed with negative implications on December 18, 2009, and refreshed in March 2009. The TCR-AP reported on Oct. 26, 2009, that Standard & Poor's Ratings Services assigned its 'B' rating to the US$375 million 5- year 4% convertible notes issued by Tata Motors Ltd. (B/Negative/--) on Oct. 15, 2009. ========= J A P A N ========= ELPIDA MEMORY: Plans to Take Taiwan Subsidiary Public Next Year --------------------------------------------------------------- Elpida Memory Inc. plans to list its Taiwanese unit Rexchip Electronics Corp. on the Taiwan stock exchange in the second half of next fiscal year, Bloomberg News reports citing the Nikkei English News. Elpida spokesman Hiroshi Tsuboi said in response to the Nikkei report that there's been no decision on the timing of a possible listing of Rexchip, Bloomberg relates. Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a Japan-based company principally engaged in the development, design, manufacture and sale of semiconductor products, with a focus on dynamic random access memory (DRAM) silicon chips. The main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile RAM and XDR DRAM, among others. The Company distributes its products to both domestic and overseas markets, including the United States, Europe, Singapore, Taiwan, Hong Kong and others. The company has eight subsidiaries and two associated companies. * * * Elpida Memory Inc. posted net losses of JPY23.54 billion and JPY178.87 billion for the years ended March 31, 2008, and 2009, respectively. JAPAN AIRLINES: Applies Antitrust Immunity With American Air ------------------------------------------------------------ American Airlines and Japan Airlines (JAL) filed an application with the U.S. Department of Transportation (DOT) for antitrust immunity to forge a closer relationship and implement a Joint Business Agreement (JBA) governing the operation of their flights between North America and Asia. The airlines also will notify the Ministry of Land, Infrastructure, Transport and Tourism in Japan of the transaction. "An immunized JBA will benefit the public, offer new competition in the fast-growing Asian aviation marketplace and strengthen the relationship between American and Japan Airlines, which will support JAL's successful restructuring," said Gerard Arpey, American's Chairman and CEO. "It will improve customer choice by giving the oneworld(R) Alliance, of which American and JAL are key members, strong hub operations at Tokyo, thus allowing more vibrant competition with other global alliances in northeast Asia and beyond." "With immunity to enter a JBA, Japan Airlines and American Airlines will be able to cooperate more tightly in raising the quality of our services and thus encourage healthy competition in this promising region for the industry," said JAL Group Chief Operating Officer and President Masaru Onishi. "Furthermore, not only will both carriers be able to improve operational efficiency but most importantly, our valued customers will receive greater benefits and convenience which we hope will place us in a position to always be the airlines of their choice." Antitrust immunity between American and JAL is made possible by the Open Skies accord reached by the United States and Japan in December 2009. When that agreement becomes effective, it will eliminate the restraints on competition. More Consumer Benefits, Choices and Travel Options Under an immunized JBA, American and JAL will cooperate commercially on flights while continuing to operate as separate legal entities. They will coordinate fares, services and schedules in order to attract new customers and boost revenues. By more closely integrating their networks, the airlines will be able to improve efficiency, find opportunities to lower costs and have greater ability to invest in products, services and fleets. By working together to provide links for connecting passengers, the airlines can expand customer choice by offering new routes and supporting existing routes that would not be economically viable for the airlines individually. American and JAL expect more opportunities to expand their codeshare arrangements on flights within and beyond Japan and the U.S. and to create new competition in the trans-Pacific marketplace. Consumers also will continue to receive reciprocal frequent flyer benefits, and eligible customers will continue to have access to the airport lounges of both airlines. Employees and other stakeholders are expected to benefit from the airlines' improved competitive position and financial stability. The JBA will be "metal neutral," meaning American and JAL will benefit from a customer's ticket purchase regardless of which one carries the passenger, as the airlines will share revenue on all JBA flights. The revenue growth resulting from the JBA will provide both airlines with substantial support towards improving profitability. Enhanced Trans-Pacific Competition The closer cooperation between oneworld Alliance members American and JAL will improve network competition with the other alliances. Through the JBA, the two airlines will offer a fully-integrated network between trans-Pacific gateway airports, ensuring all customers a third robust global airline alliance from which to choose, and more options for time-sensitive business travelers. About American Airlines American Airlines, American Eagle and AmericanConnection(R) serve 250 cities in 40 countries with, on average, more than 3,400 daily flights. The combined network fleet numbers more than 900 aircraft. American's award-winning Web site, AA.com(R), provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld(R) Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve nearly 700 destinations in more than 130 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation (NYSE: AMR). About Japan Airlines 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) JAPAN AIRLINES: M. Ventress Wants Lift Stay to Continue Appeal -------------------------------------------------------------- Martin Ventress asks the U.S. Bankruptcy Court for the Southern District of New York to lift the automatic stay in order to continue an appeal pending in the United States Court of Appeals for the Ninth Circuit. Mr. Ventress asks that the automatic stay imposed by Section 362 of the Bankruptcy Code be lifted to permit the Ninth Circuit Court of Appeals to enter judgment regarding certain appellate litigation currently pending between the Japan Airlines Corporation, Japan Airlines International Co., Ltd., and JAL Capital Co., Ltd., and Mr. Ventress. Mr. Ventress is signed an employment contract with Hawaii Aviation Contract Services, Inc., to fly airplanes for JALways Co., Ltd., not Japan Airlines Corporation. Mr. Ventress submitted Safety Reports describing violations against JAL and JALways for instructing pilot, Jeff Bicknell, to fly passenger flights despite being extremely ill. Mr. Ventress, a Flight Engineer, warned the Japanese Captain of Bicknell's illness prior to flights they operated for both JAL and JALways. Bicknell had been flying with a cancerous tumor lodged in the base of his brain and nearly crashed a commercial DC-10 aircraft with passengers and crew, Mr. Ventress relates. Mr. Ventress says he was retaliated against after submitting Safety Reports of Mr. Bicknell's health, to JAL, JALways, HACS and U.S. Federal Agencies that included the FAA. Mr. Ventress was fired and named JAL, JALways, and HACS in a wrongful termination lawsuit in the U. S. District Court of Central California in December 2002 (Case No. 02-09762NM - SHX). In July 2003, the case was transferred to the USDC of Hawaii (Case No. 03-00451 - SPK/LEK). The case was dismissed on the grounds that a 1953 Friendship, Commerce and Navigation Treaty allowed Japanese companies an absolute right to employ employees covered by the FCN Treaty without regard for U.S. Federal employment laws. Mr. Ventress appealed in the 9th Circuit which reversed USDC ruling for JAL and JALways and remanded the case back to Hawaii for further proceedings that included instructions to amend the complaint from California State Law to Hawaii State Law. The USDC denied the Motion to amend the complaint; but instead granted JAL and JALways summary judgment to dismiss the case, this time under the Federal Airline Deregulation Act. In April 2008, Mr. Ventress filed another appeal in the 9th Circuit Court, which is currently pending. Mr. Ventress' employment contract with HACS incorporated an arbitration provision that was not negotiable. The arbitration is being appealed as scandalous at best, because it was procured by fraud; and too, awaits 9th Circuit determination. Mr. Ventress requests relief from the automatic stay so that it may proceed by whatever means are appropriate and consistent with the 9th Circuit schedule to have those issues and claims determined. Mr. Ventress asserts that the Debtor's bankruptcy petition should not stop the long overdue decision by the 9th Circuit in a lawsuit that involves multiple parties and the Bankruptcy Court should be so inclined as to allow the lawsuit to go forward, considering JALways and HACS, currently in business, have not filed a petition for bankruptcy, neither named as Debtors in the Chapter 15 case. Foreign Representative Objects Eiji Katayama, the foreign representative of the Debtors, objects to the Lift Stay Motion. The Foreign Representative says he intends to resolve the Lift Stay Motion amicably with Mr. Ventress and has been in contact with him in the days subsequent to receipt of the Lift Stay Motion to attempt to reach a mutual resolution. However, out of an abundance of caution, the Foreign Representative files an Objection to preserve any rights it may have with respect to the Lift Stay Motion. About Japan Airlines 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) JAPAN AIRLINES: US Court Recognizes Tokyo Case as Main Proceeding ----------------------------------------------------------------- Judge James M. Peck of the United States Bankruptcy Court for the Southern District of New York issued an order on February 17, 2010, recognizing the proceedings of Japan Airlines Corporation, Japan Airlines International Co., Ltd., and JAL Capital Co., Ltd., in the Tokyo District Court as foreign main proceedings pursuant to Sections 1517(a) and 1517(b)(1) of the U.S. Bankruptcy Code. Judge Peck held that all provisions of Section 1520 of the U.S. Bankruptcy Code apply in the Chapter 15 cases, including the stay under Section 362 and the provisions of Section 363 throughout the duration of the Chapter 15 cases or until otherwise ordered by the U.S. Court. Pursuant to Section 1520 of the U.S. Bankruptcy Code, the Japan Proceeding will be given its full force and effect, and, among other things: (a) the protections of Sections 361 and 362 of the U.S. Bankruptcy Code apply with respect to the Debtors and the property of the Debtors in the territorial jurisdiction of the United States; (b) all persons and entities are enjoined from seizing, attaching or enforcing or executing liens or judgments against the Debtors' property in the United States or from transferring, encumbering or otherwise disposing of or interfering with the Debtors' assets or agreements in the United States without the express consent of the Foreign Representative; and (c) all persons and entities are enjoined from commencing or continuing, including the issuance or employment of process of, any judicial, administrative or any other action or proceeding involving or against the Debtors or their assets or proceeds thereof that are located in the United States, or to recover a claim or enforce any judicial, quasi-judicial, regulatory, administrative or other judgment, assessment, order, lien or arbitration award against the Debtors or their assets or proceeds thereof that are located in the United States. Notwithstanding anything to the contrary to the provisions of Section 1520, any party may move the U.S. Court for relief from those restrictions for good cause shown. The U.S. Court recognized Eiji Katayama, Esq., at Abe, Ikubo & Katayama, as "foreign representative" as defined in Section 101(24) of the Bankruptcy Code. The Debtors will be entitled to the full protections and rights enumerated under Section 1521(a)(4) and (5) of the Bankruptcy Code. The Foreign Representative: (a) is entrusted with the administration or realization of all or part of the Debtors' assets located in the United States; and (b) has the right and power to examine witnesses, take evidence or deliver information concerning the Debtors' assets, affairs, rights, obligations, or liabilities. The Foreign Representative is established as the representative of the Debtors with full authority to administer the Debtors' assets and affairs in the United States, including making payments on account of the Debtors' prepetition and postpetition obligations. The banks and financial institutions with which the Debtors maintain bank accounts or on which checks are drawn or electronic payment requests made in payment of prepetition or postpetition obligations are authorized and directed to continue to service and administer the Debtors' bank accounts without interruption and in the ordinary course and to receive, process, honor and pay any checks, drafts, wires and automatic clearing house transfers issued, whether before or after the Petition Date and drawn on the Debtors' bank accounts by respective holders and makers thereof and at the direction of the Foreign Representative or the Debtors, as the case may be. The Foreign Representative having confirmed that it has elected in accordance with applicable Japanese insolvency law to assume, accept, validate and perform the Debtors' obligations under the Debtors' interline agreements and clearinghouse agreements and billing and settlement agreements administered by the International Air Transport Association (IATA), the IATA Clearing House, Airlines Clearing House, Inc. and Universal Air Travel Plan, Inc. -- Industry Agreements -- the Debtors and the Foreign Representative, as the case may be, are authorized to perform in accordance with the Industry Agreements, including (a) to honor and pay outstanding prepetition and postpetition claims arising in the ordinary course of business under the Industry Agreements, and (b) to process customary payments and transfers and to honor customary transfer requests made by Debtors and other participants pursuant to the Industry Agreements. Notwithstanding anything, the provisions of Sections 362 and 1520 of the U.S. Bankruptcy Code are modified, nunc pro tunc to January 19, 2010, solely to the extent necessary to permit performance of, and under, the Industry Agreements by the Debtors and other parties to the agreements and by financial institutions involved in implementing the agreements. A full-text copy of the Recognition Order is available for free at http://bankrupt.com/misc/JAL_OrdRecognitionMO.pdf About Japan Airlines 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) NOMURA HOLDINGS: Fitch Affirms Ratings; Gives Positive Outlook -------------------------------------------------------------- Fitch Ratings has affirmed all the ratings on Nomura Holdings Inc., and Nomura Securities Co., Ltd., and has revised the Outlook on both companies' Long-term Issuer Default Ratings to Positive from Stable. The rating actions follow Fitch's review of NHI and Nomura Securities, and reflect Fitch's positive assessment of the group's performance and prospects. NHI has seen revenue growth across its retail and wholesale business lines, amid an improving operating environment, while cost controls also seem to be taking effect. However, profitability remains weak, partly owing to fair value adjustments on its own liabilities. That said, the agency believes that NHI's expanding global presence and geographical revenue diversity, stemming from its acquisitions of the bulk of the former Lehman Brothers' non-US employees and platforms, is starting to contribute to NHI's market position, performance and franchise. In addition, Fitch notes NHI's capitalization has been further strengthened by the two rounds of fresh common equity raisings in 2009, with high disclosed preliminary tier 1 capital and total capital ratios under the Basel II framework at 17.8% and 25.0% respectively, as of end-December 2009. The net adjusted leverage is at a low of 8.7x. Furthermore, NHI's liquidity position remains strong, with its 'disclosed liquidity' of JPY4.4trillion - - an amount that can adequately cover short-term debt. Nomura Securities, the operating broker-dealer subsidiary in Japan, maintained its strong market position and its operating performance was strong in the nine months to end-December 2009 (Q3FYE10). With a revived strong risk appetite in Japanese retail customers for investment trusts and other risk products, a favorable capital markets environment and lower market volatility, the business prospects for Nomura Securities are favorable. NHI is Japan's largest securities group and Nomura Securities has a strong franchise in the domestic investment banking market. The group's franchise has expanded after the acquisition of the bulk of Lehman Brothers' employees/platforms in Europe, Middle East and Asia-Pacific. The ratings are: NHI: -- Long-term foreign currency IDR affirmed at 'BBB'; Outlook revised to Positive from Stable; -- Long-term local currency IDR affirmed at 'BBB'; Outlook revised to Positive from Stable; -- Short-term foreign currency IDR affirmed at 'F2'; -- Short-term local currency IDR affirmed at 'F2'; -- Individual rating affirmed at 'C'; -- Support rating affirmed at '5'; and -- Support Rating Floor affirmed at 'NF' Nomura Securities: -- Long-term foreign currency IDR affirmed at 'BBB+'; Outlook revised to Positive from Stable; -- Long-term local currency IDR affirmed at 'BBB+'; Outlook revised to Positive from Stable; -- Short-term foreign currency IDR affirmed at 'F2'; -- Short-term local currency IDR affirmed at 'F2'; -- Individual rating affirmed at 'C'; -- Support rating affirmed at '4'; and -- Support Rating Floor affirmed at 'B' PIONEER CORPORATION: Moody's Gives Stable Outlook on 'B2' Rating ---------------------------------------------------------------- Moody's Investors Service has changed to stable from negative its outlook for the B2 local currency issuer rating of Pioneer Corporation. This rating action follows Pioneer's announcement on February 24, 2010, that the net proceeds from its common stock issuance have been fixed at about JPY29 billion. The company also plans to issue its new shares through a third- party allotment, and will raise about JPY5.6 billion in March. Accordingly, the company will likely receive approximately JPY35 billion in total by the end of this fiscal year, FYE 03/2010. The rating action reflects Moody's expectation that Pioneer's stock issuance will help the company mitigate the negative impact on its balance sheet of a net loss during this fiscal year. The result will be a reduction in downside risk. Pioneer expects this net loss to total JPY54 billion, mainly because of a large operating loss and restructuring costs. The net loss could have damaged its balance sheet significantly in the absence of any capital injections. In Moody's estimation, its adjusted debt to capitalization may have surpassed 85% during FYE03/2010 from 73.6% in FYE03/2009. But, the new stock issuance would help keep the ratio around 75%. The funds which Pioneer will receive through the new stock issuance will be used mainly for strengthening its car electronics business. Since Pioneer has decided to focus on this segment, withdrawing from its loss-making flat panel display TV business, keeping its competitive edge in car electronics is strategically important. Without these new funds, Pioneer would likely have to reduce its investment for the growth of this business, and which could result in a decline in its competitiveness. Nevertheless, Moody's notes that Pioneer still needs to deal with the challenge of meeting its short-term funding needs and restoring profitability. Moody's will continue to monitor progress on these points. At the same time, Moody's recognizes that Pioneer has made steady progress, something which also supports the stable outlook. Regarding its short-term funding needs, Pioneer originally estimated that it would need to finance JPY40 billion, including the funds for the redemption of about JPY 60 billion in euro-yen zero coupon convertible bonds due in March 2011. However, Pioneer may be able to generate sufficient funds to cover its funding requirements through reductions in its operating loss and restructuring costs, as well as the sale of assets. For example, Pioneer expects to reduce its net loss by JPY29 billion -- from its original forecast of a net loss of about JPY83 billion for FYE03/2010 -- and which will make significant savings for its cash flow. Pioneer also plans to sell its assets, such as its former head office and investment securities, to generate about JPY20 billion. To expedite the process, it moved its head office last year. Pioneer's operating performance is also recovering. It recorded an operating profit in its car electronics segment as well as overall in the third quarter of FYE03/2010. Pioneer's alliances with Honda Motor Co., Ltd. (A1), Mitsubishi Electric Corporation (A1), and Shanghai Automotive Industry Corporation (Group) (unrated) in its car electronics business will help it save on development costs and increase sales in the future. Besides these factors, Moody's believes that financial support from its major lenders remains strong, mitigating its short-term liquidity concerns. This uplifts the company's rating by two notches from its fundamental level of creditworthiness. Moody's notes the current rating incorporates the subordination of unsecured debt to secured bank loans. If the company can further improve its financial flexibility, for instance, through the sale of assets and the improvement of loan conditions, while keeping its overall profitability, its ratings could be positively pressured. For instance, if Pioneer maintains operational profitability and keeps adjusted debt to capitalization below 75%, the outlook could change to positive. Any event that could negatively affect its financial flexibility, such as a significant deterioration in profitability and cash flow and its failure to generate necessary funds, could lead to a downgrade of its ratings. For example, if Pioneer would seem to require more time to restore its profitability or adjusted debt to capitalization is expected to exceed 80%, the outlook could change to negative. Significant changes in its banking relationships would lead to a downgrade of two notches. The last rating action for Pioneer took place on October 2, 2009, when Moody's downgraded the company's local currency issuer rating from B1 to B2 with negative outlook. Pioneer Corporation, headquartered in Kanagawa, is world leading manufacturer of car electronics. WILLCOM INC: ISDA Rules Willcom Bankruptcy is Credit Event ---------------------------------------------------------- Bloomberg News reports that the International Swaps & Derivatives Association said that a committee of credit-default swap dealers and investors ruled that the bankruptcy of Willcom Inc. is a credit event. ISDA said that credit-default swaps on Willcom won't be settled at auction, according to Bloomberg. Meanwhile, Bloomberg News, citing Nikkei English News, reports that the Enterprise Turnaround Initiative Corp. of Japan, a state- backed turnaround agency, postponed until at least next week a decision on whether to provide support for the rehabilitation of Willcom. About WILLCOM WILLCOM provides wireless data and voice services to corporate and consumer customers in Japan. The company launched its service in 1995 and is the largest operator employing Personal Handyphone System (PHS) technology. PHS is a kind of stripped-down cellular service with relatively low charges; the technology was developed in Japan and most of its users live in Japan and China. WILLCOM provides mobile service nationwide in Japan, serving more than 4 million subscribers. The Carlyle Group owns 60% of WILLCOM; Kyocera Corporation owns 30%. Willcom filed for bankruptcy protection with the Tokyo District Court with liabilities of JPY206 billion. Willcom in September said it was unable to agree on a revival plan with all creditors after failing to reschedule debt payments. According to Bloomberg, wireless carrier Willcom has been losing subscribers as rivals offer faster mobile-phone services. Willcom may seek investment from Softbank Corp., Japan's third-largest mobile-phone company, and a Japanese investment fund, to revive its businesses, Asahi said. Researcher Teikoku Databank Ltd. said the filing by Willcom is the biggest in Japan's telecommunications industry. Heisei Denden Co. was the previous biggest failure in October 2005 with liabilities of JPY120 billion. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Creditors to Sell Up to 13% Hynix Stake ------------------------------------------------------------ Hynix Semiconductor Inc.'s creditors will sell as much as 13% stake in the company by the end of this year, Yonhap News reports. The news agency says the creditors, led by Korea Exchange Bank, plan to sell an 8% stake in Hynix by the end of June and 5% in the second half. The decision came after the creditors, which own a controlling 28% stake worth around US$3 billion in Hynix, failed in their third attempt to find a domestic buyer for the stake, Yonhap notes. 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. KUMHO ASIANA: Creditors to Double Support to Kumho Petrochemical ---------------------------------------------------------------- Bloomberg News, citing a report from MoneyToday, says Korea Kumho Petrochemical Co.'s creditors plan to double financial support for the rubber maker to about KRW200 billion ($173 million). The Troubled Company Reporter-Asia Pacific reported on Thursday that Yonhap News said Kumho Asiana Group's creditor banks are set to provide fresh funds to its petrochemical and airline units in a bid to help them ease a liquidity squeeze. Yonhap, citing financial sources, said the Korea Development Bank, Kumho Asiana's main creditor, plans to seek agreements from other creditor banks starting this week over whether to supply KRW120 billion in funds to Asiana Airlines. Sources also told Yonhap that the KDB is in the process of seeking agreement among creditors over whether to provide a fresh KRW60 billion to Korea Kumho Petrochemical Co. The creditors decided on Dec. 30 to put two other ailing units -- Kumho Industrial Co. and Kumho Tire Co. -- under a debt rescheduling program. Meanwhile, the group's other two units -- Korea Kumho Petrochemical Co. and Asiana Airlines Inc. -- will have to improve their financial health through rigorous self- restructuring efforts as earlier agreed with creditors. The creditors would offer a total of KRW560 billion in funds to Kumho Asiana Group's four affiliates if the plan goes smoothly, according to Yonhap. As reported in the Troubled Company Reporter-Asia Pacific on August 6, 2009, The Korea Herald said Kumho Asiana has been suffering from a liquidity crisis, which observers describe as a typical case of acquisition indigestion. In a bid to ease a cash shortage, the conglomerate in July decided to re-sell the controlling stakes and management rights of Daewoo Engineering, after acquiring it in 2006 for KRW6.4 trillion. Bloomberg said creditors including Shinhan Bank may force the company to repay KRW3.9 trillion (US$3.2 billion) by June if they exercise an option to sell Daewoo Engineering shares they hold back to Kumho Asiana. 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. SSANGYONG MOTOR: Seeks KRW100BB Loans Due to Cash Shortage, Report ------------------------------------------------------------------ Saeromi Shin at Bloomberg News reports that Ssangyong Motor Co. on Feb. 25 fell in Seoul trading after the Korea Economic Daily said the company will pay half of workers' February wages and is seeking about KRW100 billion ($87 million) in loans because of a cash shortage. Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd. -- http://www.smotor.com/-- is a manufacturer of automobiles primarily engaged in production of sports utility vehicles (SUVs) and recreational vehicles (RVs). The company's production is grouped into four lines: SUVs under brand names REXTON, KYRON and ACTYON; sports utility trucks (SUTs) under the brand name ACTYON Sports; passenger cars under brand name Chairman, and multi- purpose vehicles (MPVs) under the brand name Rodius. It also provides automobile parts such as coolers, diesel engines and others. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 12, 2009, Ssangyong Motor Co. filed for receivership with the Seoul Central District Court to stave off a complete collapse. In February, the Seoul Central District Court accepted Ssangyong's application to rehabilitate under court protection. The court named former Hyundai Motor Co. executive Lee Yoo-il and Ssangyong executive Park Young-tae to run the automaker. A TCR-AP report on Sept. 16, 2009, said Ssangyong Motor submitted a revival plans to the Seoul Central District Court seeking capital reduction and a debt-for-equity swap by creditors. A South Korean bankruptcy court approved in December Ssangyong Motor's restructuring plan despite opposition by some bondholders, the TCR-AP reported on Dec. 18, 2009. Yonhap News said Ssangyong vowed to get itself in order over the next three years. * SOUTH KOREA: Creditor Banks to Start Assessing Troubled Firms --------------------------------------------------------------- The Korea Herald reports that creditor banks are expected to start pushing financially-troubled companies to shore up their balance sheets through a debt-workout program or force them out of the market from April in earnest. The move, the Herald says, comes as companies' financial statements on the fiscal year 2009 are to be closed by March. The report, citing industry sources, relates that firms in the construction, shipbuilding and shipping industries will face the intense scrutiny of creditor banks as they have yet to recover from the impact of the global recession last year. The report says the Financial Supervisory Service is to complete selecting conglomerates to be assessed by creditor banks, whose credit facilities make up more than 0.1% of financial sector's total credit facilities, by the end of March. According to the Herald, an FSS official said that while creditor banks mainly looked into the debt-to-equity ratio in the last year's assessment of companies, they will also take into account liquidity levels and cash flow this year. Sources told the Herald that builders, shipbuilders and shipping industries which suffered a rigorous restructuring last year are likely to face another checkup this time. =============== M A L A Y S I A =============== OCI BERHAD: Incurs MYR1.32-Mil. Net Loss for Qtr. to Dec. 31 ------------------------------------------------------------ OCI Berhad reported a net loss of MYR1.32 million for the quarter ended December 31, 2009, compared with a net loss of MYR1.56 million in the same period in 2008. For the second quarter ended December 31, 2009, the company recorded MYR1.58 million of total revenues, slightly higher the revenues of MYR1.37 million recorded in the same quarter of 2008. As of December 31, 2009, the company's balance sheet showed strained liquidity with MYR3.88 million in current assets available to pay MYR69.05 million in current liabilities coming due within the next twelve months. The company's balance sheet as of end-December also showed MYR25.27 million in total assets and MYR69.05 million in total liabilities, resulting in a MYR43.77-million shareholders' deficit. OCI Berhad manufactures adhesives used in the production of shoes for the footwear, toy making, building/construction, automotive, furniture and packaging industries. OCI manufactures and markets a range of sealants and adhesives for various consumer and industrial purposes in 70 countries around the world. On January 24, 2006, the Company disposed off its entire 51% equity interest in Tongyong Resin Chemical Industry Co. Ltd. The company is an affected listed issuer as Ernst & Young expressed substantial doubt regarding the company's ability to continue as a going concern after having audited the company's financial statements for the year ended June 30, 2007. The auditor points to the company's losses and, together with its subsidiaries, the default on the repayment of various financial obligations. ==================== N E W Z E A L A N D ==================== LOMBARD GROUP: ACIL Shareholders Get 98% Stake in Reverse Takeover ------------------------------------------------------------------ The Lombard Group, the parent of failed Lombard Finance, will go to its shareholders this week with details of a reverse takeover deal that could see it becoming 98.5% owned by shareholders of Perth-based insurer Australian Consolidated Insurance, The National Business Review reports. Under the reverse takeover deal, Lombard proposes to make a takeover offer to ACIL shareholders for all ACIL's existing 42.8 million shares. It will then offer 1.48 billion new shares in Lombard as consideration for the ACIL shares, or 34.6 Lombard shares for each ACIL share. According to the report, the deal has obtained approval from NZX and is subject to approval from Lombard shareholders, who will be posted details of the deal this week. The report relates Lombard chief executive Michael Reeves said a reverse takeover by ACIL would be positive for all Lombard stakeholders. As reported in the Troubled Company Reporter-Asia Pacific on July 6, 2009, Lombard entered into a conditional arrangement with ACIL which, subject to shareholder and regulatory consents, will result in LOM acquiring all the shares in ACIL. This "reverse takeover" will result in ACIL's businesses becoming part of a listed group, Lombard Group said in a statement to the stock exchange. About ACIL ACIL is an Australasian company that provides differentiated insurance products and services to insurance purchasers. The ACIL group has 18 subsidiary companies in these specialized insurance segments: -- Insurance Broking -- Underwriting Agency -- Risk Management -- Insurance Premium Funding ACIL currently manages in excess of AU$80 million of insurance premiums from offices in Perth, Sydney, Melbourne, Brisbane, Auckland and Hamilton. About Lombard Group Headquartered in Wellington, New Zealand, Lombard Group Limited (NZE:LOM) -- http://www.lombardgroup.co.nz/-- is primarily engaged in the provision of finance to small and medium-sized businesses for a range of purposes. In March 2008, the Company's wholly owned subsidiary, Lombard Mortgages Limited, acquired the remaining 30% interest in Tasman Mortgages Limited. Tasman Mortgages Limited is a mortgage arranger and mortgage broking company. Lombard Mortgages operates as a mortgage broker. The Company's principal subsidiary is Lombard Finance & Investments Limited. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 10, 2008, Lombard Group said that its financial performance for the year ended March 31, 2008, has been dramatically affected by the receivership of the Group's significant subsidiary, Lombard Finance & Investments Limited, which occurred on April 10, 2008. While the audited Group result is a loss of NZ$3.26 million, the Board recognizes that does not reflect the full impact of the receivership. NZF MONEY: Fails to Qualify for Gov't. Retail Deposit Guarantee --------------------------------------------------------------- The New Zealand Herald reports that NZF Money Limited expects to lose half of its retail debenture support after failing to qualify for the Government's extended retail deposit guarantee scheme but says that will not be the end of the business. NZF Money, a subsidiary of NZX-listed NZF Group, was the latest finance company to get a credit rating before the March 1 deadline set by the Government, the report says. So far only Avanti Finance, Asset Finance and now NZF Money have missed out on qualifying, the Herald notes. The Herald relates that finance companies with liabilities of more than $20 million have to gain a credit rating of BB or above to qualify for the guarantee, which rolls over in October, before an expected phase-out by the end of next year, but NZF Money received only a B rating. According to the Herald, Standard & Poor's analyst Gavin Gunning said NZF Money had received a B rating because its parent company was weakly capitalized, the company was vulnerable to liquidity issues and it had some large lending exposures relative to its size. Mr. Gunning, as cited by the Herald, said NZF Group had total equity of only $3.9 million -- just 1.4 per cent of its assets -- and there was a risk that if it came under stress it could put financial pressure on the subsidiary. The Herald notes that the lack of capital also meant if the finance company got into trouble its parent would not be in a position to bail it out. According to the report, NZF Group managing director John Callaghan, who is indirectly the largest shareholder at 23%, said the rating had come in where the company had expected it to. NZF Group Limited (NZE:NZF), formerly New Zealand Finance Holdings Limited, is a provider of financial services with its core activity being a diversified range of services including, investment, lending, insurance, and mortgage broking. All operations of the Company are carried out within New Zealand. The Company's subsidiaries include NZF Money Limited, NZF Homeloans Limited, New Zealand Finance Securitisation Limited, NZF Mortgages Limited, New Zealand Mortgage Finance Limited, Approved Mortgage Brokers Limited and Finance Direct Limited. NZF MONEY: S&P Assigns 'B' Long-Term Counterparty Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said it has assigned its 'B' long-term counterparty credit rating to NZF Money Ltd., a wholly owned subsidiary of New Zealand-based NZF Group Ltd. (unrated). At the same time, S&P assigned its 'B' short-term rating to NZF. The outlook is negative. "The ratings on NZF reflect the company's status as a wholly owned subsidiary of weakly capitalized parent, NZF Group Ltd. and also recognize vulnerability potentially affecting NZF's liquidity over the coming 12 months, and some large lending exposures relative to size," Standard & Poor's credit analyst Gavin Gunning said. "S&P is of the view that the rating assigned to NZF Money Ltd. is constrained by its ownership by NZF Group Ltd., in particular because of NZF Group Ltd.'s weak capitalization." On the other hand, favorable features of NZF's credit profile include its moderate loan quality and profitability, by domestic standards. NZF's primary focus is on first-mortgage property lending and while its nonperforming assets and credit costs have increased, NZF has managed a recent period of difficult operating conditions better than most New Zealand finance companies specializing in property lending. "The negative rating outlook mainly reflects uncertainties concerning NZF's liquidity through 2010," said Mr. Gunning. A revision of the rating outlook to stable would require a track record showing that NZF was successful in managing its liquidity, funding, and asset quality risks through 2010 in what continues to be a challenging industry environment. "Upwards rating momentum is most likely to depend on a significant improvement in capitalization with no diminution in liquidity or other elements of NZF's financial profile." ===================== P H I L I P P I N E S ===================== BENGUET CORP: Files Injunction Case Against Nadecor Over Project ---------------------------------------------------------------- The Philippine Daily Inquirer reports that Benguet Corp. has filed an injunction case against its partner, Nationwide Development Corp. (Nadecor), in the Kingking gold project. The Inquirer relates Benguet said in a stock exchange statement that the issue of cancellation of the operating agreement between the two companies "is a judicial question that should be brought to the regular court, instead of [an] arbitration case." Raymond H. Ricafort, Nadecor's financial consultant, told Business World Online in a phone interview that the arbitration request Nadecor filed earlier this month was in line with the agreement that both companies had signed. "The arbitration is faster and is more efficient. I do not understand why they are filing for an injunction in the court," BusinessWorld quoted Mr. Ricafort as saying. "[The request for injunction] is creating a delaying scenario which is not good for the mining industry," he said. According to the BusinessWorld, Nadecor wants arbitration to facilitate the termination of its three-decade-old operating agreement with the Romualdez firm, which the former claims has been unable to fulfill its obligations. Mr. Ricafort said Nadecor would push for the arbitration case, BusinessWorld notes. Kingking, located in Pantukan town, Compostela Valley, has reserves of about 353 million metric tons (MT) of ore containing 0.385% copper grade and 0.439 grams of gold per MT. It is one of the priority mining projects of the government, which is aiming to raise $11 billion in mining investments by 2013. About Benguet Corp. Benguet Corporation (PSE:BC) -- http://www.benguetcorp.com/-- is engaged in chromite and gold mining and production, exploration, research and development, and water projects. The Company explores for mines, produces and markets gold, refractory chromite, nickel laterite ore, limestone and aggregates, and through its subsidiaries, provides eco-tourism, engineering and construction, reforestation, trucking and warehousing services, sells industrial equipment and supplies, develops water resources and real estate projects. * * * Jaime F. Del Rosario at Sycip Gorres Velayo and Co. raised significant doubt on Benguet Corporation's ability to continue as a going concern saying that the group has incurred cumulative losses of PHP4.8 billion and PHP4.3 billion in 2008 and 2007, respectively, which resulted to a capital deficiency of PHP1.6 billion and PHP1.3 billion as of December 31, 2008, and 2007, respectively. The Group's current liabilities exceeded its current assets by PHP3.8 billion and PHP3.1 billion as of Dec. 31, 2008 and 2007, respectively. In addition, the Group was unable to pay its maturing bank loans and related interests of PHP3.6 billion and PHP3.1 billion as of December 31, 2008 and 2007, respectively. ================= S I N G A P O R E ================= G A CAPITAL: Members' Final Meeting Set for March 26 ---------------------------------------------------- G A Capital Pte Ltd, which is in members' voluntary liquidation, will hold a final meeting for its members on March 26, 2010, at 10:00 a.m., at #21-08 Shaw Centre, in Singapore 228208. The company's liquidator is: Madam Chia Lay Beng 1 Scotts Road #21-08 Shaw Centre Singapore 228208 GOLDEN AARON: Creditors' Proofs of Debt Due March 26 ---------------------------------------------------- Creditors of Golden Aaron Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by March 26, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 23, 2009. The company's liquidator is: Mdm Chia Lay Beng 1 Scotts Road #21-08 Shaw Centre Singapore 228208 SAGE INTERNATIONAL: Creditors' Proofs of Debt Due March 24 ---------------------------------------------------------- Creditors of Sage International Asia Pacific Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by March 24, 2010, to be included in the company's dividend distribution. The company's liquidators are: Chee Yoh Chuang Eu Chee Wei David c/o 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 =============== X X X X X X X X =============== * S&P Raises Ratings on Five Tranches of Asia-Pacific CDOs ---------------------------------------------------------- Standard & Poor's Ratings Services said that is had raised its rating on five tranches of Asia-Pacific (ex-Japan) CDO tranches. At the same time, the ratings were removed from CreditWatch with positive implications, where they were placed on Feb. 11, 2010. S&P reviewed the credit quality of the securitized assets using the synthetic rated overcollateralization scores and results from its supplemental tests: the largest obligor and largest industry tests. These results measure the degree by which the credit enhancement of a tranche exceeds the stressed loss rate assumed for a given rating scenario. The SROC scores and test results show an improvement in the credit quality of the underlying portfolios, which, along with a higher- than-expected recovery on defaulted reference names in the portfolios, indicate sufficient credit support at the higher rating levels. DBS Bank Ltd. S$100 million Portfolio Credit-Link Notes Deal name To From --------- -- ---- A+ A-/Watch Pos Zenesis SPC Series 2005-3 A- BBB-/Watch Pos Zenesis SPC Series 2005-4 A- BBB/Watch Pos ARLO Limited Series 2006 (SKL CDO Series 11) Deal name To From --------- -- ---- BB-pNRi BpNRi/Watch Pos Obelisk Trust 2005-3 - Mica B+ CCC+/Watch Pos Notes: Where the final price on defaulted reference names in CDO portfolios is not known, S&P's analysis takes into consideration the auction results for these names from the International Swaps and Derivatives Association, Inc. In accordance with the criteria for rating CDO transactions certain factors such as credit stability and rating sensitivity to modeling parameters may be considered in assigning ratings to CDO tranches, in addition to the supplemental tests, the Monte Carlo default simulation results, and the associated cash flow modeling. Such risks in transactions may be assessed on a case-by-case basis and the ratings may be qualitatively adjusted to a rating level different than that indicated by the various quantitative results. The tranches' final ratings reflect the result of any such qualitative adjustments. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ ------ ------------ AUSTRALIA ADVANCE HEAL-NEW AHGN 16.93 -8.23 AMA GROUP LTD AMA 39.03 -0.86 ANTARES ENERGY L AZZ 13.71 -1.96 ARC EXPLORATION ARX 56.83 -15.05 AUSTAR UNITED AUN 568.69 -325.83 AUSTRAILIAN Z-PP AZCCA 77.74 -2.57 AUSTRALIAN ZIRC AZC 77.74 -2.57 BCD RESOURCES OP BCO 22.09 -61.19 BCD RESOURCES-PP BCOCC 22.09 -61.19 BIRON APPAREL LT BIC 19.71 -2.22 CENTRO PROPERTIE CNP 14,725.10 -495.30 CHALLENGER INF-A CIF 2,307.01 -104.58 CHEMEQ LTD CMQ 25.19 -24.25 CITY PACIFIC LTD CIY 171.50 -6.38 ELLECT HOLDINGS EHG 18.25 -15.49 HEALTH CORP LTD HEA 13.26 -0.01 HYRO LTD HYO 21.50 -14.83 JAMES HARDIE NV JHXCC 2,130.90 -131.10 JAMES HARDIE-CDI JHX 2,130.90 -131.10 MAC COMM INFR-CD MCGCD 8,104.42 -103.34 RESIDUAL ASSC-EE RAGXF 597.33 -126.96 SHELL VILLAGES A SVC 13.47 -1.66 STRATHFIELD GRP SRA 32.79 -0.94 TERRITORY RESOUR TTY 78.23 -3.34 VERTICON GROUP VGP 14.22 -24.60 CHINA AMOI ELECTRONI-A 600057 186.72 -176.17 ANHUI KOYO GROUP 979 43.55 -32.06 BAO LONG ORIENTA 600988 16.38 -3.24 CHANG LING GROUP 561 33.36 -13.70 CHENGDU UNION-A 693 52.17 -7.60 CHINA EAST AIR-A 600115 10,663.62 -669.02 CHINA KEJIAN-A 35 83.78 -182.39 DANDONG CHEM F-A 498 100.50 -111.14 DONGGUAN FANGD-A 600656 62.02 -10.11 DONGXIN ELECTR-A 600691 20.72 -6.13 GAOXIN ZHANGTO-A 2075 119.52 -30.48 GUANGDONG HUAL-A 600242 19.85 -1.62 GUANGDONG KEL-A 921 650.07 -103.76 GUANGMING GRP -A 587 48.72 -47.59 GUANGXI BEISHE-A 600556 103.12 -138.38 GUANGXIA YINCH-A 557 19.31 -37.90 HEBEI BAOSHUO -A 600155 133.67 -361.69 HEBEI JINNIU C-A 600722 241.28 -228.12 HUDA TECHNOLOG-A 600892 21.31 -2.90 HUNAN ANPLAS CO 156 51.58 -70.84 JIANGSU CHINES-A 805 12.86 -10.34 LIAOYUAN DEHENG 600699 138.72 -6.69 QINGHAI SUNSHI-A 600381 50.90 -26.09 SHAANXI QINLIN-A 600217 233.97 -21.07 SHANG HONGSHENG 600817 17.94 -396.97 SHANG LIANHUA-A 600617 15.68 -1.54 SHANG LIANHUA-B 900913 15.68 -1.54 SHANGHAI WORLDBE 600757 181.37 -127.60 SHENZ CHINA BI-A 17 27.97 -264.11 SHENZ CHINA BI-B 200017 27.97 -264.11 SHENZHEN DAWNC-A 863 28.09 -157.71 SHENZHEN KONDA-A 48 195.27 -14.90 SHENZHEN SHENX-A 34 23.96 -166.32 SHENZHEN ZERO-A 7 61.82 -3.40 SHIJIAZHUANG D-A 958 235.06 -54.14 SICHUAN DIRECT-A 757 128.39 -118.67 SUNTEK TECHNOL-A 600728 37.92 -21.21 TAIYUAN TIANLO-A 600234 50.40 -25.24 TIANJIN MARINE 600751 82.40 -30.39 TIANJIN MARINE-B 900938 82.40 -30.39 TIBET SUMMIT I-A 600338 86.47 -0.05 TOPSUN SCIENCE-A 600771 183.02 -138.22 WINOWNER GROUP C 600681 10.72 -71.85 WUHAN BOILER-B 200770 349.55 -74.89 WUHAN GUOYAO-A 600421 11.45 -39.41 XIAMEN OVERSEA-A 600870 286.40 -145.07 YUEYANG HENGLI-A 622 37.27 -15.53 YUNNAN MALONG-A 600792 145.38 -30.28 ZHANGJIAJIE TO-A 430 45.95 -4.59 HONG KONG 21 HOLDINGS LTD 1003 43.65 -4.26 ASIA TELEMEDIA L 376 16.62 -5.37 CHAOYUE GROUP LT 147 42.69 -127.80 CHINA EAST AIR-H 670 10,663.62 -669.02 CHINA GOLDEN DEV 162 253.00 -2.72 EGANAGOLDPFEIL 48 557.89 -132.86 EMPEROR ENTERTAI 8078 39.23 -5.35 FULBOND HLDGS 1041 60.26 -14.42 HISENSE ELEC-H 921 650.07 -103.76 HUTCHISON TELE H 215 2,400.10 -366.06 MITSUMARU EAST K 2358 38.17 -1.45 NEW CITY CHINA 456 113.18 -9.93 NGAI LIK INDL 332 132.82 -4.76 PAC PLYWOOD 767 75.64 -5.41 PALADIN LTD 495 157.69 -6.23 PALADIN LTD -PRE 642 157.69 -6.23 PCCW LTD 8 5,990.93 -394.97 PERCEPTION DIG 8248 31.21 -4.64 PROVIEW INTL HLD 334 412.85 -191.26 WAI CHUN MINING 660 12.79 -14.60 WAYTUNG GLOBAL G 21 12.33 -2.96 INDONESIA ASIA PACIFIC POLY 481.76 -847.67 DAVOMAS ABADI DAVO 272.59 -17.19 ERATEX DJAJA ERTX 10.05 -15.29 JAKARTA KYOEI ST JKSW 28.00 -39.75 KARWELL INDONESI KARW 10.28 -8.09 MULIA INDUSTRIND MLIA 349.54 -393.20 PANASIA FILAMENT PAFI 51.27 -4.30 PANCA WIRATAMA PWSI 28.57 -34.35 PRIMARINDO ASIA BIMA 10.97 -20.00 STEADY SAFE TBK SAFE 12.27 -4.84 SURABAYA AGUNG SAIP 248.50 -92.41 TEIJIN INDONESIA TFCO 185.09 -14.27 UNITEX TBK UNTX 15.67 -14.25 INDIA ALCOBEX METALS AML 16.59 -21.47 ASHIMA LTD ASHM 59.92 -47.15 BALAJI DISTILLER BLD 51.16 -38.38 BELLARY STEELS BSAL 451.68 -108.50 BHAGHEERATHA ENG BGEL 22.65 -28.20 CFL CAPITAL FIN CEATF 14.31 -40.04 COMPUTERSKILL CPS 14.90 -7.56 CORE HEALTHCARE CPAR 185.36 -241.91 DCM FINANCIAL SE DCMFS 16.54 -10.99 DIGJAM LTD DGJM 98.77 -14.62 DISH TV INDIA DITV 422.08 -127.61 DUNCANS INDUS DAI 116.96 -183.24 GANESH BENZOPLST GBP 77.84 -41.87 GEM SPINNERS LTD GEMS 15.23 -0.11 GLOBAL BOARDS GLB 25.15 -0.79 GSL INDIA LTD GSL 37.04 -42.34 GSL NOVA PETROCH GSLN 44.39 -0.93 GUJARAT SIDHEE GSCL 59.44 -0.66 HARYANA STEEL HYSA 10.83 -5.91 HENKEL INDIA LTD HNKL 102.05 -10.24 HFCL INFOTEL LTD HFCL 151.65 -85.81 HIMACHAL FUTURIS HMFC 406.63 -210.98 HINDUSTAN PHOTO HPHT 68.94 -1147.18 HINDUSTAN SYNTEX HSYN 12.68 -1.79 HMT LTD HMT 139.31 -277.69 ICDS ICDS 13.30 -6.17 INDIA FOILS LTD IF 22.01 -2.04 INFOMEDIA 18 LTD INF18 35.80 -1.94 INTEGRAT FINANCE IFC 45.56 -43.27 ITI LTD ITI 1,116.21 -0.80 JCT ELECTRONICS JCTE 122.54 -50.00 JD ORGOCHEM LTD JDO 10.46 -1.60 JENSON & NIC LTD JN 15.93 -74.33 JIK INDUS LTD KFS 20.63 -5.62 JK SYNTHETICS JKS 13.51 -3.03 JOG ENGINEERING VMJ 50.08 -10.08 KALYANPUR CEMENT KCEM 32.04 -26.76 KERALA AYURVEDA KRAP 13.41 -0.59 KINGFISHER AIR KAIR 1,458.64 -418.91 LLOYDS FINANCE LYDF 27.68 -8.64 LLOYDS STEEL IND LYDS 358.94 -83.14 MILLENNIUM BEER MLB 36.39 -3.20 MILTON PLASTICS MILT 18.31 -40.44 NATH PULP & PAP NPPM 13.59 -39.13 NICCO UCO ALLIAN NICU 28.84 -56.77 ORIENT PRESS LTD OP 16.70 -0.09 PANCHMAHAL STEEL PMS 51.02 -0.33 PANYAM CEMENTS PYC 38.84 -0.64 PARASRAMPUR SYN PPS 111.97 -317.11 PAREKH PLATINUM PKPL 61.08 -88.85 PEACOCK INDS LTD PCOK 11.40 -14.40 PIRAMAL LIFE SC PLSL 32.05 -3.73 POLAR INDS LTD PLI 11.61 -22.28 RAMA PHOSPHATES RMPH 34.07 -1.19 RATHI ISPAT LTD RTIS 44.56 -3.93 RELIGARE TECHNOV RTCL 44.13 -1.46 RENOWNED AUTO PR RAP 14.12 -1.25 ROLLATAINERS LTD RLT 22.97 -22.24 ROYAL CUSHION RCVP 20.22 -62.97 RPG CABLES LTD RPG 51.43 -20.19 SCOOTERS INDIA SCTR 13.29 -0.58 SHALIMAR WIRES SWRI 24.49 -49.90 SHAMKEN COTSYN SHC 23.13 -6.17 SHAMKEN MULTIFAB SHM 60.55 -13.26 SHAMKEN SPINNERS SSP 42.18 -16.76 SHREE RAMA MULTI SRMT 63.73 -52.93 SIDDHARTHA TUBES SDT 70.93 -12.09 SIL BUSINESS ENT SILB 12.46 -19.96 SOUTHERN PETROCH SPET 1,543.61 -35.61 SPICE COMMUNICAT SPCM 263.69 -19.68 SPICEJET LTD SJET 147.98 -84.65 STERLING HOL RES SLHR 52.91 -0.63 STI INDIA LTD STIB 28.05 -8.04 TAMILNADU TELE TNT 10.26 -4.14 TATA TELESERVICE TTLS 793.63 -74.64 TRIUMPH INTL OXIF 58.46 -14.18 TRIVENI GLASS TRSG 24.39 -8.90 UNIWORTH LTD WW 145.71 -114.87 USHA INDIA LTD USHA 12.06 -54.51 VENTURA TEXTILES VRTL 14.25 -0.33 WINDSOR MACHINES WML 14.50 -28.14 WIRE AND WIRELES WNW 102.42 -37.06 WIRE AND WIRE-PP WNWPP 102.42 -37.06 JAPAN ARDEPRO 8925 345.61 -207.11 COMMERCIAL RE 8866 296.85 -0.35 COSMOS INITIA CO 8844 1,652.69 -564.01 FLIGHT SYS CONSU 3753 14.88 -1.07 HARAKOSAN CO 8894 265.03 -21.41 ICHITAN CO LTD 5645 99.16 -4.38 JIPANGU HOLDINGS 2684 15.05 -8.38 L CREATE CO LTD 3247 42.34 -9.15 LCA HOLDINGS COR 4798 49.52 -2.24 NESTAGE CO LTD 7633 11.77 -12.20 PROPERST CO LTD 3236 303.29 -415.76 RAYTEX CORP 6672 61.49 -3.49 SAIKAYA CO LTD 8254 398.46 -17.56 SHINWA OX CORP 2654 61.39 -12.95 SOWA JISHO CO LT 3239 17.45 -33.84 TERRANETZ CO LTD 2140 11.63 -4.29 KOREA AJU MEDIA SOL-PF 44775 13.82 -1.25 CL LCD CO LTD 35710 55.59 -14.79 DAHUI CO LTD 55250 186.00 -1.50 DAISHIN INFO 20180 740.50 -158.45 ELIM EDU CO LTD 46240 34.03 -3.75 KYSYS CO LTD 15390 10.67 -6.27 MOBO CO LTD 51810 196.64 -11.98 ORICOM INC 10470 82.65 -40.04 PAPERCOREA INC 1020 310.53 -154.09 PRIME ENTMT 17170 31.47 -19.37 ROCKET ELEC-PFD 425 68.58 -2.14 ROCKET ELECTRIC 420 68.58 -2.14 SAMT CO LTD 31330 303.86 -77.57 SOLAR & TECH CO 30390 11.47 -0.59 STARMAX CO LTD 17050 50.13 -25.44 TAESAN LCD CO 36210 187.94 -546.26 TONG YANG MAGIC 23020 355.15 -25.77 UTX CO LTD 45880 19.76 -2.85 YOUILENSYS CORP 38720 166.70 -12.34 MALAYSIA AXIS INCORPORATI AXIS 35.44 -79.33 HARVEST COURT HAR 11.12 -7.48 HO HUP CONSTR CO HO 71.66 -1.27 LITYAN HLDGS BHD LIT 14.28 -29.49 POLY TOWER VENTU PTV 58.06 -5.45 SINOTOP HOLDING SNHB 22.80 -0.41 WONDERFUL WIRE WW 11.54 -15.64 WWE HOLDINGS BHD WWE 66.48 -1.52 NEW ZEALAND DOMINION FINANCE DFH 258.90 -55.31 PHILIPPINES APEX MINING 'B' APXB 51.26 -8.97 APEX MINING-A APX 51.26 -8.97 BENGUET CORP 'B' BCB 75.49 -37.05 BENGUET CORP-A BC 75.49 -37.05 CYBER BAY CORP CYBR 12.93 -79.23 EAST ASIA POWER PWR 50.80 -139.42 FIL ESTATE CORP FC 37.29 -11.36 FILSYN CORP A FYN 22.00 -10.28 FILSYN CORP. B FYNB 22.00 -10.28 GOTESCO LAND-A GO 18.68 -10.86 GOTESCO LAND-B GOB 18.68 -10.86 MRC ALLIED MRC 13.04 -3.68 PICOP RESOURCES PCP 105.66 -23.33 PRIME ORION PHIL POPI 90.35 -5.12 STENIEL MFG STN 28.67 -1.48 UNIVERSAL RIGHTF UP 45.12 -13.48 UNIWIDE HOLDINGS UW 52.80 -56.18 VICTORIAS MILL VMC 178.06 -36.66 SINGAPORE 0.00 0.00 ADV SYSTEMS AUTO ASA 11.79 -12.81 ADVANCE SCT LTD ASCT 67.58 -14.05 CARRIERNET GLOBA CARG 14.29 -0.02 CHUAN SOON HUAT CSH 29.97 -19.29 FALMAC LTD FAL 10.12 -6.80 HL GLOBAL ENTERP HLGE 93.30 -12.86 INFORMATICS EDU INFO 24.56 -0.01 JURONG TECH IND JTL 98.76 -227.28 LINDETEVES-JACOB LJ 160.48 -86.70 OCEAN INTERNATIO OCEAN 61.66 -13.72 PACIFIC CENTURY PAC 17.86 -4.52 SUNMOON FOOD COM SMOON 19.29 -10.67 TIGER AIRWAYS TGR 122.90 -71.92 TT INTERNATIONAL TTI 287.51 -38.28 WESTECH ELECTRON WTE 28.29 -12.86 THAILAND ABICO HLDGS-F ABICO/F 12.07 -9.54 ABICO HOLDINGS ABICO 12.07 -9.54 ABICO HOLD-NVDR ABICO-R 12.07 -9.54 BANGKOK RUBBER BRC 87.00 -64.96 BANGKOK RUBBER-F BRC/F 87.00 -64.96 BANGKOK RUB-NVDR BRC-R 87.00 -64.96 CENTRAL PAPER IN CPICO 10.22 -216.07 CENTRAL PAPER-F CPICO/F 10.22 -216.07 CENTRAL PAPER-NV CPICO-R 10.22 -216.07 CIRCUIT ELEC PCL CIRKIT 17.39 -88.00 CIRCUIT ELEC-FRN CIRKIT/F 17.39 -88.00 CIRCUIT ELE-NVDR CIRKIT-R 17.39 -88.00 DATAMAT PCL DTM 12.69 -6.13 DATAMAT PCL-NVDR DTM-R 12.69 -6.13 DATAMAT PLC-F DTM/F 12.69 -6.13 ITV PCL ITV 33.88 -90.93 ITV PCL-FOREIGN ITV/F 33.88 -90.93 ITV PCL-NVDR ITV-R 33.88 -90.93 K-TECH CONSTRUCT KTECH 39.74 -33.07 K-TECH CONSTRUCT KTECH/F 39.74 -33.07 K-TECH CONTRU-R KTECH-R 39.74 -33.07 KUANG PEI SAN POMPUI 17.15 -12.12 KUANG PEI SAN-F POMPUI/F 17.15 -12.12 KUANG PEI-NVDR POMPUI-R 17.15 -12.12 MALEE SAMPRAN MALEE 56.30 -3.46 MALEE SAMPRAN-F MALEE/F 56.30 -3.46 MALEE SAMPR-NVDR MALEE-R 56.30 -3.46 PATKOL PCL PATKL 51.03 -29.87 PATKOL PCL-FORGN PATKL/F 51.03 -29.87 PATKOL PCL-NVDR PATKL-R 51.03 -29.87 PICNIC CORPORATI PICNI 162.04 -79.86 PICNIC CORPORATI PICNI/F 162.04 -79.86 PICNIC CORPORATI PICNI-R 162.04 -79.86 PONGSAAP PCL PSAAP 25.97 -4.74 PONGSAAP PCL PSAAP/F 25.97 -4.74 PONGSAAP PCL-NVD PSAAP-R 25.97 -4.74 SAFARI WORLD PUB SAFARI 102.74 -23.19 SAFARI WORLD-FOR SAFARI/F 102.74 -23.19 SAFARI WORL-NVDR SAFARI-R 102.74 -23.19 SAHAMITR PRESS-F SMPC/F 31.18 -14.94 SAHAMITR PRESSUR SMPC 31.18 -14.94 SAHAMITR PR-NVDR SMPC-R 31.18 -14.94 SUNWOOD INDS PCL SUN 19.86 -13.03 SUNWOOD INDS-F SUN/F 19.86 -13.03 SUNWOOD INDS-NVD SUN-R 19.86 -13.03 THAI-DENMARK PCL DMARK 15.72 -10.10 THAI-DENMARK-F DMARK/F 15.72 -10.10 THAI-DENMARK-NVD DMARK-R 15.72 -10.10 TRANG SEAFOOD TRS 11.52 -1.25 TRANG SEAFOOD-F TRS/F 11.52 -1.25 TRANG SFD-NVDR TRS-R 11.52 -1.25 UNIVERSAL S-NVDR USC-R 97.74 -40.29 UNIVERSAL STARCH USC 97.74 -40.29 UNIVERSAL STAR-F USC/F 97.74 -40.29 TAIWAN CHIEN TAI CEMENT 1107 202.45 -22.41 HELIX TECH-EC 2479T 23.39 -24.12 HELIX TECH-EC IS 2479U 23.39 -24.12 HELIX TECHNOL-EC 2479S 23.39 -24.12 TAIWAN KOL-E CRT 1606U 507.21 -147.14 TAIWAN KOLIN-EN 1606V 507.21 -147.14 TAIWAN KOLIN-ENT 1606W 507.21 -147.14 VERTEX PREC-ENTL 5318T 43.04 -2.31 VERTEX PRECISION 5318 43.04 -2.31 YEU TYAN MACHINE 8702 39.57 -271.07 ********* 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 ***