/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100426.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 Monday, April 26, 2010, Vol. 13, No. 080 Headlines A U S T R A L I A MILLIWAYS MERCANTILE: Brisbane Supreme Court Orders Wind Up C H I N A NEW ENERGY SYSTEMS: Reports US$5,837,395 Net Income for 2009 H O N G K O N G RIGHT TOP: Placed Under Voluntary Wind-Up Proceedings RISE GROUP: Court to Hear Wind-Up Petition on May 26 SAKURA LIMITED: Court Enters Wind-Up Order SHOWA EUREX: Commences Wind-Up Proceedings SHOWA YUKI: Commences Wind-Up Proceedings SMART ASIA: Court Enters Wind-Up Order SMART ASIA HOLDINGS: Court Enters Wind-Up Order SOCIETY FOR THE PROMOTION: Members' Final Meeting Set for May 18 SUCCESS ELITE: Court Enters Wind-Up Order SUCCESS MASTER: Court Enters Wind-Up Order SUMORE CORPORATION: Court Enters Wind-Up Order TAKE FORTUNE: Court Enters Wind-Up Order TRESOR PUBLISHING: Members' Final Meeting Set for May 17 VIGERS HONG KONG: Court to Hear Wind-Up Petition on May 5 WAI SHING: Court to Hear Wind-Up Petition on June 2 WELMODE FASHION: Court to Hear Wind-Up Petition on May 19 WIDEST SKY: Court to Hear Wind-Up Petition on May 5 WILLING KNITWEAR: Court to Hear Wind-Up Petition on May 26 YAT WO: Members' Final General Meeting Set for May 17 ZTOYS LIMITED: Court Enters Wind-Up Order I N D I A ACCURA VALVES: Delays in Loan Repayment Cue CRISIL Junk Ratings AGGARWAL RICE: CRISIL Reaffirms 'B+' Rating on INR28.7MM Term Loan AIR INDIA: Payment of March Salary Delayed, Minister Patel Says ALLIED RECYCLING: CRISIL Assigns 'B' Ratings on Various Bank Debts ATLAS AUTOMOTIVE: CRISIL Places 'BB+' Rating on INR39.4M Term Loan BHUMIKA GEMS: CRISIL Reaffirms 'P4' Ratings on Various Bank Debts CLASSIC WEARS: Delay in Loan Repayment Cues CRISIL Junk Ratings DINESH JEWELLERS: CRISIL Rates INR60 Million Cash Credit at 'D' FAQIR CHAND: CRISIL Rates INR50.0 Mil. Cash Credit at 'BB+' IGC INDIA: CRISIL Rates INR50.0 Million Letter of Credit at 'P4+' JET AIRWAYS: To Add 3 to 4 ATR Planes JINDAL SUPER: CRISIL Puts 'BB+' Rating on INR50 Mil. Cash Credit NR INTERNATIONAL: CRISIL Upgrades Rating on INR150MM Cash Credit POOJA LEISURE: CRISIL Rates INR150 Mil. Long-Term Loan at 'BB-' J A P A N GEOS CORP: President Wants Bankruptcy Proceedings Halted GODO KAISHA: Moody's Withdraws Ratings on Mercury01 Notes JAPAN FINANCE: Moody's Reviews Ratings on Two Japan SME CLOs SOFTBANK CORP: S&P Raises Corporate Credit Rating to 'BB+' K O R E A HYUNDAI MOTOR: Posts KRW1.1 Trillion Net Profit in Q1 M A L A Y S I A AXIS INC: Has Until June 30 to Submit Regularization Plan MALAYSIAN MERCHANT: Bourse Orders Firm to Start Audit Soon MALAYSIAN MERCHANT: Served With Writs Of Summons RAMUNIA HOLDINGS: To Hold Scheme Creditors' Meeting on May 7 RAMUNIA HOLDINGS: Completes Sale of Fabrication Yard to Sime Darby RAMUNIA HOLDINGS: Expects to Step Out of PN17 by Year-End P H I L I P P I N E S LIBERTY TELECOMS: Appellate Court Junks Bid to Halt Rehabilitation S I N G A P O R E ASIAN MINERALS: Court Enters Wind-Up Order AUTOHUB ASIA: Court Enters Wind-Up Order CHUAN SIANG: Court Enters Wind-Up Order EASTERN ISLAND: Creditors' Proofs of Debt Due May 23 FORTUNE DESIGN: Court Enters Wind-Up Order IMAGEAIRE PTE: Court Enters Wind-Up Order INSERVE (S) PTE: Members' Final Meeting Set for May 24 L&M EQUIPMENT: Court to Hear Wind-Up Petition on May 7 L&M INFRATECH: Court to Hear Wind-Up Petition on May 7 L&M PETROMAS: Court to Hear Wind-Up Petition on May 7 M.E.I. ENGINEERS: Court Enters Wind-Up Order MOBILE & WIRELESS: Creditors Get 100% and 1.23% Recovery on Claims ORIENT NETWORKS: Creditors Get 0.78956% Recovery on Claims PRESTIGE BUILDING: Court Enters Wind-Up Order TW OILS: Court to Hear Wind-Up Petition on May 7 T A I W A N ASUSTEK COMPUTER: Sees Better-than Expected Q2 Business Prospects AU OPTRONICS: Swings to NT$7.27 Billion Net Profit in Q1 HANNSTAR DISPLAY: Obtains 4-Year NT$8 Billion Syndicated Loan - - - - - ================= A U S T R A L I A ================= MILLIWAYS MERCANTILE: Brisbane Supreme Court Orders Wind Up ----------------------------------------------------------- The Brisbane Supreme Court has ordered the liquidation of Milliways Mercantile Pty Ltd after an application from creditor Persal and Co., trading as Handy Hire. Persal alleged as grounds for its action the company's "failure to comply with a statutory demand" that the company pay a AU$3,231 debt, as ordered in Gympie Magistrates Court on February 4. Milliways Mercantile Pty Ltd owns the Gympie's Chambers Restaurant and Hotel, formerly known as the Commercial Hotel. The business occupies one of Gympie's significant heritage buildings, built in the 19th Century. Gympie publisher Anthony James Stower, of Rocky Ridge Road, Gympie, is named in Australian Securities and Investment Commission documents as the sole director of the company. ========= C H I N A ========= NEW ENERGY SYSTEMS: Reports US$5,837,395 Net Income for 2009 ------------------------------------------------------------ New Energy Systems Group has filed with the Securities and Exchange Commission its annual report on Form 10-K for the fiscal year ended December 31, 2009. The Company reported net income of US$5,837,395 for 2009 from net income of US$4,451,072 for 2008. Revenues were US$26,375,890 for 2009 from US$19,716,408 for 2008. As of December 31, 2009, the Company had total assets of US$53,380,185 against total liabilities of US$13,386,862, resulting in stockholders' equity of US$39,993,323. A full-text copy of the Company's annual report is available at no charge at http://ResearchArchives.com/t/s?607d A full-text copy of the Company's conference call transcript is available at no charge at http://ResearchArchives.com/t/s?607e In its quarterly report on Form 10-Q, the Company said it believes it has sufficient cash to continue its current business through September 30, 2010, due to expected increased sales revenue and net income from operations. "However we have suffered recurring losses in the past and have a large accumulated deficit. These conditions raise substantial doubt about the Company's ability to continue as a going concern," the Company said. The Company has taken certain restructuring steps to provide the necessary capital to continue its operations. These steps included 1) acquire profitable operations through issuance of equity instruments, and 2) to continue actively seeking additional funding and restructure the acquired subsidiaries to increase profits and minimize the liabilities. The April 9, 2010 report of Goldman Parks Kurland Mohidin LLP in Encino, California, the Company's independent auditor, does not include a negative going concern opinion about the Company. About New Energy Systems Group With offices in New York and Shenzhen, China, New Energy Systems Group (OTCBB: NEWN) -- http://www.chinadigitalcommunication.com/ -- manufactures and distributes lithium ion batteries. The company assembles and distributes finished batteries through its sales network and channel partners. The company also sells high- quality lithium-ion battery shell and cap products to major lithium-ion battery cell manufacturers in China. The company's products are used to power mobile phones, MP3 players, laptops, digital cameras, PDAs, camera recorders and other consumer electronic digital devices. This concludes the Troubled Company Reporter's coverage of New Energy Systems until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. ================ H O N G K O N G ================ RIGHT TOP: Placed Under Voluntary Wind-Up Proceedings ----------------------------------------------------- At an extraordinary general meeting held on April 8, 2010, creditors of Right Top Industrial Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Ho Lok Cheong Room 1912, West Tower Shun Tak Centre 168 Connaught Road Central, Hong Kong RISE GROUP: Court to Hear Wind-Up Petition on May 26 ---------------------------------------------------- A petition to wind up the operations of Rise Group Technology Limited will be heard before the High Court of Hong Kong on May 26, 2010, at 9:30 a.m. Industrial and Comercial Bank of China (Asia) Limited filed the petition against the company on March 15, 2010. The Petitioner's solicitors are: Y.T. Chan & Co. 5th Floor, The Chinese Bank Building 61-65 Des Voeux Road Central Hong Kong SAKURA LIMITED: Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on April 7, 2010, to wind up the operations of Sakura Limited. The official receiver is E T O' Connell. SHOWA EUREX: Commences Wind-Up Proceedings ------------------------------------------ Members of Showa Eurex (H.K.) Co., Limited, on April 8, 2010, passed a resolution to voluntarily wind-up the company's operations. The company's liquidator is: Hue Yat Lun Sansom Room 509 Bank of America Tower 12 Harcourt Road Central, Hong Kong SHOWA YUKI: Commences Wind-Up Proceedings ----------------------------------------- Members of Showa Yuki (H.K.) Co., Limited, on April 8, 2010, passed a resolution to voluntarily wind-up the company's operations. The company's liquidator is: Hue Yat Lun Sansom Room 509 Bank of America Tower 12 Harcourt Road Central, Hong Kong SMART ASIA: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on April 7, 2010, to wind up the operations of Smart Asia Watches Limited. The official receiver is E T O' Connell. SMART ASIA HOLDINGS: Court Enters Wind-Up Order ----------------------------------------------- The High Court of Hong Kong entered an order on April 7, 2010, to wind up the operations of Smart Asia Holdings Limited. The official receiver is E T O' Connell. SOCIETY FOR THE PROMOTION: Members' Final Meeting Set for May 18 ---------------------------------------------------------------- Members of The Society for the Promotion of the New Fourth Army History Limited will hold their final meeting on May 18, 2010, at 11:00 a.m., at the Room 1901-2, 19/F., Hong Kong Trade Centre, 161-167 Des Voeux Road, Central, in Hong Kong. At the meeting, Lai Ka Cheung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SUCCESS ELITE: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on March 31, 2010, to wind up the operations of Success Elite Limited. The official receiver is E T O' Connell. SUCCESS MASTER: Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on April 7, 2010, to wind up the operations of Success Master Limited. The official receiver is E T O' Connell. SUMORE CORPORATION: Court Enters Wind-Up Order ---------------------------------------------- The High Court of Hong Kong entered an order on March 30, 2010, to wind up the operations of Sumore Corporation Limited. The official receiver is E T O' Connell. TAKE FORTUNE: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on April 7, 2010, to wind up the operations of Take Fortune Limited. The official receiver is E T O' Connell. TRESOR PUBLISHING: Members' Final Meeting Set for May 17 -------------------------------------------------------- Members of Tresor Publishing Limited will hold their final general meeting on May 31, 2010, at 10:00 a.m., at the 2310 Dominion Centre, 43-59 Queen's Road East, in Hong Kong. At the meeting, J P Walsh, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. VIGERS HONG KONG: Court to Hear Wind-Up Petition on May 5 --------------------------------------------------------- A petition to wind up the operations of Vigers Hong Kong Limited will be heard before the High Court of Hong Kong on May 5, 2010, at 9:30 a.m. Zhuan PP Holdings Limited, Great Gains International Limited, East Champion Limited and Large Investments Limited filed the petition against the company on October 19, 2009. The Petitioner's solicitors are: Lam & Co. Room A, 19th Floor Harbour Commercial Building Nos. 122-124 Connaught Road Central Hong Kong WAI SHING: Court to Hear Wind-Up Petition on June 2 --------------------------------------------------- A petition to wind up the operations of Wai Shing Transportation Limited will be heard before the High Court of Hong Kong on June 2, 2010, at 9:30 a.m. WELMODE FASHION: Court to Hear Wind-Up Petition on May 19 --------------------------------------------------------- A petition to wind up the operations of Welmode Fashion Limited will be heard before the High Court of Hong Kong on May 19, 2010, at 9:30 a.m. WIDEST SKY: Court to Hear Wind-Up Petition on May 5 --------------------------------------------------- A petition to wind up the operations of Widest Sky Group Hong Kong Limited will be heard before the High Court of Hong Kong on May 19, 2010, at 9:30 a.m. WILLING KNITWEAR: Court to Hear Wind-Up Petition on May 26 ---------------------------------------------------------- A petition to wind up the operations of Willing Knitwear (Holdings) Limited will be heard before the High Court of Hong Kong on May 26, 2010, at 9:30 a.m. Industrial and Comercial Bank of China (Asia) Limited filed the petition against the company on March 5, 2010. The Petitioner's solicitors are: Y.T. Chan & Co. 5th Floor, The Chinese Bank Building 61-65 Des Voeux Road Central Hong Kong YAT WO: Members' Final General Meeting Set for May 17 ----------------------------------------------------- Members of Yat Wo Bleaching & Dyeing Limited will hold their final general meeting on May 17, 2010, at 10:00 a.m., at 21/F., Fee Tat Commercial Centre, No. 613 Nathan Road, Kowloon, in Hong Kong. At the meeting, Lee Kwok Hung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ZTOYS LIMITED: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on April 7, 2010, to wind up the operations of ZToys Limited. The official receiver is E T O' Connell. ========= I N D I A ========= ACCURA VALVES: Delays in Loan Repayment Cue CRISIL Junk Ratings --------------------------------------------------------------- CRISIL has assigned its ratings of 'D/P5' to the bank facilities of Accura Valves Pvt Ltd. Facilities Ratings ---------- ------- INR60.0 Million Cash Credit D (Assigned) INR20.0 Million Rupee Term Loan D (Assigned) INR17.5 Million Proposed Long Term D (Assigned) Bank Loan Facility INR2.5 Million Letter of Credit/ P5 (Assigned) Bank Guarantee The rating reflects delays by Accura in servicing loan instalments and interests on its term loan obligations; the delay has been caused by weak liquidity. Set up in 1993 by Mr. Sanjeev S Sadhale, Accura (formerly, Accura Valves Manufacturing Company (India) Pvt Ltd, commenced operations after acquiring existing business of Accura Valves, a proprietorship concern, in 2007. Accura Valves was engaged in manufacturing of automotive valves since 1995. Accura manufactures automotive valves and supplies tyre valves to leading tyre manufacturers in India. The company also manufactures carburettor products at its Pune unit for Hyundai Motor India Ltd. Accura is one of the top three automotive tyre valve manufacturers in India catering to the passenger car, truck, and tractor segments, with a market share of 20-22 per cent. Currently, the company has capacity to manufacture around 3 million valves per month; following the commissioning of new capacities, its capacity is expected to increase to around 3.8 million per month. Accura reported a profit after tax (PAT) of INR8.3 million on net sales of INR246.2 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR12.5 million on net sales of INR250.6 million for 2007-08. AGGARWAL RICE: CRISIL Reaffirms 'B+' Rating on INR28.7MM Term Loan ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Aggarwal Rice Mills continue reflect Aggarwal's weak financial risk profile marked by large working capital requirements, small scale of operations, customer concentration in revenue profile, and vulnerability to adverse regulatory changes and volatility in raw material prices. These weaknesses are partially offset by the benefits that Aggarwal derives from the industry experience of its promoters and the healthy growth prospects in the rice industry. Facilities Ratings ---------- ------- INR290.0 Million Cash Credit Limit B+/Stable (Reaffirmed) INR28.7 Million Term Loan B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that Aggarwal's financial risk profile will remain weak over the medium term because of the firm's large working capital requirements. The firm's scale of operations is expected to remain small over this period. The outlook may be revised to 'Positive' in case of significant improvement in the firm's capital structure and increase in scale of operations. Conversely, the outlook may be revised to 'Negative' if Aggarwal's capital structure or profitability deteriorates. Set up in 1982 as a partnership firm by Mr. Sunil Mittal and his family and friends, Aggarwal was converted into a proprietorship concern in 2007, with Mr. Mittal as proprietor. Aggarwal mills processes and sells basmati rice. It produces mainly parboiled rice, which has high demand in the Middle East. The firm's rice milling, grading and sorting unit at Baghapurana (Punjab) has capacity to process 10 tonnes of rice per hour. The firm also procures unsorted rice from other mills, and sorts the same for sale in the export markets. Aggarwal reported a profit after tax (PAT) of INR1.1 million on net sales of INR479.8 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR0.9 million on net sales of INR150.7 million for 2007-08. AIR INDIA: Payment of March Salary Delayed, Minister Patel Says --------------------------------------------------------------- The Press Trust of India reports that Air India delayed payment of March's salary to its employee by a month as it had to meet year- end expenses for various purposes. PTI relates Minister of State for Civil Aviation Praful Patel said "the salary for the month of March, 2010, was paid to the employees of Air India on April 7, 2010." According to the news agency, Mr. Patel said the postponement was necessitated due to committed March year-end payments to oil companies, Airports Authority of India, foreign and Indian vendors and because of repayment of loans. The minister also said Air India has decided to close its offices at Lahore and Karachi in Pakistan due to the lack of operations from these cities, the report adds. As reported in the Troubled Company Reporter-Asia Pacific on June 10, 2009, the National Aviation Co. of India Ltd was seeking INR14,000 crore in equity infusion, soft loans and grants to cope up with mounting losses. NACIL is the holding company formed after the merger of erstwhile Indian Airlines and Air India in 2007. The TCR-AP, citing the Hindustan Times, reported on June 19, 2009, that Air India has been bleeding cash due to excess capacity, lower yield, a drop in passenger numbers, an increase in fuel prices and the effects of the global slowdown. The carrier incurred net losses of INR2,226.16 crore in 2007-08 and INR5,548 crore in 2008-09. In December, the Air India board decided to initiate a series of major steps to cut costs and enhance savings. The carrier is focusing on cutting costs by INR1,500 crore and increasing revenues by INR1,200 crore as per its turnaround plan, according to the Business Standard. The airline's turnaround plan has been broadly divided into 0-9 months, 9-18 months and 18-36 months, and has been segregated under operational efficiency, product improvement, organization building and financial restructuring, the Business Standard said. About Air India Air India -- http://www.airindia.com/-- transports passengers throughout India and to more than 40 destinations throughout the world. Affiliate Air India Express operates as a low-fare carrier, mainly between India and destinations in the Middle East, and Air India Cargo provides freight transportation. The government of India has merged Air India with another state- controlled carrier, Indian Airlines, which has focused on domestic routes. The combined airline, part of a new holding company called National Aviation Company of India, uses the Air India brand. The new Air India and its affiliates have a fleet of more than 110 aircraft altogether. ALLIED RECYCLING: CRISIL Assigns 'B' Ratings on Various Bank Debts ------------------------------------------------------------------ CRISIL has assigned its 'B/Stable' rating to Allied Recycling Ltd's bank facilities. Facilities Ratings ---------- ------- INR90.0 Million Cash Credit Limit B/Stable (Assigned) INR50.4 Million Term Loan B/Stable (Assigned) INR159.6 Million Proposed Long-Term B/Stable (Assigned) Bank Loan Facility The rating reflects ARL's weak financial risk profile, marked by high gearing, small net worth and weak debt protection metrics, and exposure to risks related to implementation and commissioning of large rolling mill project, and to volatility in raw material prices. These rating weaknesses are partially offset by the benefits that ARL derives from its promoters' experience in the iron and steel industry. Outlook: Stable CRISIL believes that ARL's financial risk profile will remain constrained over the medium term because of low profitability and high gearing, as a result of its planned debt-funded capital expenditure. The outlook may be revised to 'Positive' if ARL's financial risk profile improves through better profitability or infusion of equity. Conversely, the outlook may be revised to 'Negative' in case of larger-than-expected debt funding leading to deterioration in financial risk profile, or significant delays in implementation of the rolling mill project. About Allied Recycling Set up in 2003 by Mr. Vijay Kumar Abrol, ARL manufactures billets at its facility in Ludhiana, Punjab. Till June 2009, it was manufacturing ingots and trading in hot rolled (HR) and cold rolled (CR) steel sheets. The ingots are now used for captive purpose and the trading business has been discontinued with. ARL reported a profit after tax (PAT) of INR3.3 million on net sales of INR779.1 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR1.9 million on net sales of INR560 million for 2007-08. ATLAS AUTOMOTIVE: CRISIL Places 'BB+' Rating on INR39.4M Term Loan ------------------------------------------------------------------ CRISIL has assigned its 'BB+/Positive/P4+' ratings to the bank facilities of Atlas Automotive Components Ltd. Facilities Ratings ---------- ------- INR100.00 Million Cash Credit* BB+/Positive (Assigned) INR39.40 Million Term Loan BB+/Positive (Assigned) INR43.10 Million Proposed LT BB+/Positive (Assigned) Bank Loan Facility INR16.50 Million Letter of Credit P4+ (Assigned) INR5.00 Million Bank Guarantee P4+ (Assigned) *includes a sublimit of INR5.00 Million for cheque purchases The ratings reflect AACL's small scale of operations, customer concentration in revenue profile, large working capital requirements, and exposure to volatility in raw material prices. These rating weaknesses are partially offset by the benefits that AACL derives from its promoters' experience in the aluminium castings industry and established customer relationships, and by the company's moderate gearing and debt protection metrics. Outlook: Positive CRISIL believes that sustenance of AACL's improved operating margin in 2009-10 (refers to financial year, April 1 to March 31), leading to higher cash accruals, will have a positive impact on the company's business and financial risk profiles. The ratings may be upgraded if the company sustains the improved operating margin. Conversely, the outlook may be revised to 'Stable' in case of deterioration in AACL's operating margin, or if the company undertakes a large, debt-funded capital expenditure program, thereby adversely affecting its financial risk profile. About Atlas Automotive Incorporated as a private limited company in 1966, AACL was reconstituted as a closely held public limited company in 2004-05. The company manufactures aluminium castings of various grades used in the automobile and engineering industry. It manufactures products using pressure, gravity, and sand die casting, mainly for original equipment manufacturers, such as Greaves Cotton Ltd, Maruti Suzuki India Ltd (rated 'AAA/Stable/P1+' by CRISIL), Tata Motors Ltd ('A+/Stable/P1+'), and others. AACL's manufacturing unit in Chinchwad, Pune (Maharashtra), has aluminium casting capacity of 3000 tonnes per annum. AACL's promoters also manage Enkei Castalloy Ltd (Enkei), which manufactures aluminium castings and alloy wheels, and Silicon Meadows Designs Ltd, which designs and manufactures dies and moulds required for aluminium casting. SMDL supplies dies and moulds only to group companies, AACL and Enkei. AACL reported a net loss of INR4.1 million on an operating income of INR473.7 million for 2008-09, against a profit after tax of INR21.3 million on an operating income of INR543.2 million for 2007-08. BHUMIKA GEMS: CRISIL Reaffirms 'P4' Ratings on Various Bank Debts ----------------------------------------------------------------- CRISIL's rating on the bank facilities of Bhumika Gems continues to reflect Bhumika's limited financial flexibility because of its small net worth and scale of operations, and supplier concentration risk. These rating weaknesses are partially offset by the benefits that Bhumika derives from its promoters' experience, of around two decades, in the diamond business. Facilities Ratings ---------- ------- INR40.0 Million Export Packing Credit P4 (Reaffirmed) INR95.0 Million Post Shipment Credit P4 (Reaffirmed) INR27.0 Million Standby Limit P4 (Reaffirmed) Set up in 1993 by brothers Mr. Ghanshyam Vaghani, Mr. Arvind Vaghani, and Mr. Mahesh Vaghani, Bhumika, a partnership firm, is engaged in the manufacture of, and trading in, polished diamonds. The firm specialises in diamonds of sizes ranging from 0.02 to 0.20 carats. Mr. Ghanshyam Vaghani manages the procurement of rough diamonds from Belgium, Mr. Arvind Vaghani manages the firm's manufacturing facilities in Surat and Ahmedabad, and Mr. Mahesh Vaghani manages the operations from Mumbai. The brothers have an equal share in the firm's capital. The firm has a branch office in Surat. For 2008-09 (refers to financial year, April 1 to March 31), Bhumika reported a profit after tax (PAT) of INR1.4 million on net sales of INR438 million, against a PAT of INR4.8 million on net sales of INR412 million for the previous year. CLASSIC WEARS: Delay in Loan Repayment Cues CRISIL Junk Ratings --------------------------------------------------------------- CRISIL has assigned its ratings of 'D/P5' to the bank facilities of Classic Wears Pvt Ltd, which is part of the Sobhagia group. The ratings reflect delay by the Sobhagia group in repayment of term loan obligations, owing to weak liquidity. Facilities Ratings ---------- ------- INR90.0 Million Cash Credit Limit D (Assigned) INR71.4 Million Term Loan D (Assigned) INR2.0 Million Bank Guarantee P5 (Assigned) For arriving at the ratings, CRISIL has combined the business and financial risk profiles of CWL and Sobhagia Sales Pvt Ltd, together referred to herein as the Sobhagia group. This is because SSL and CWL are under the same promoter, are engaged in the same lines of business, and have considerable operational, financial, and business synergies. About the Group Set up in 1984 by Mr. Raj Awasthy and his wife, CWL manufactures readymade woolen garments at its facility in Ludhiana (Punjab). CWL sells its products in retail through SSL's showrooms and its own network of five showrooms. Set up in 1993 by Mr. Raj Awasthy, SSL manufactures readymade garments for men, women, and children at its facility in Ludhiana (Punjab). The company sells its products through its 21 exclusive showrooms and 16 franchisees under its brand Sportking and Mentor. CWL reported a profit after tax (PAT) of INR3.3 million on net sales of INR295 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of Rs4.7 million on net sales of INR340.4 million for 2007-08. DINESH JEWELLERS: CRISIL Rates INR60 Million Cash Credit at 'D' --------------------------------------------------------------- CRISIL has assigned its 'D' rating to Dinesh Jewellers' bank facilities. The rating reflects continuous overdrawals in the firm's working capital facility, owing to weak liquidity. Facilities Ratings ---------- ------- INR60.00 Million Cash Credit* D (Assigned) * Includes a Proposed Limit of INR5 Million Established in 1991 as a proprietary concern by Late Mr. Mahesh Chandra Agarwal, Dinesh Jewellers is currently managed by his eldest son, Mr. Sailesh Agarwal (a certified gemmologist). DJ deals primarily in gem-studded gold jewellery and has one jewellery showroom in abids, Hyderabad, Andhra Pradesh. Dinesh Jewellers reported a profit after tax (PAT) of INR3.4 million on net sales of INR141 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR2.5 million on net sales of INR115 million for 2007-08. FAQIR CHAND: CRISIL Rates INR50.0 Mil. Cash Credit at 'BB+' ----------------------------------------------------------- CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank facilities of Faqir Chand Vinod Kumar & Company, which is part of the Jindal Dall group. Facilities Ratings ---------- ------- INR50.0 Million Cash Credit BB+/Stable (Assigned) INR25.0 Million Letter of Credit P4+ (Assigned) The ratings reflect the Jindal Dall group's weak financial risk profile, marked by a small net worth and poor debt protection metrics, small scale of operations, and exposure to risks related to intense competition in the agricultural commodities (agro- commodities) trading business, and to adverse changes in government regulations. These rating weaknesses are partially offset by the benefits that the Jindal Dall group derives from its promoters' extensive experience in the agro-commodities trading business. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of FCVK and Jindal Super Dall Mills (JSDM), together referred to as the Jindal Dall group. This is because the two entities are under a common ownership, and in the same line of business. Outlook: Stable CRISIL believes that the Jindal Dall group will continue to benefit from its strong track record in the agro-commodities trading business. The outlook may be revised to 'Positive' if there is a sharp, sustained increase in the group's profitability, leading to considerable increase in its net worth. Conversely, the outlook may be revised to 'Negative' if the group's financial risk profile deteriorates substantially, owing to significant withdrawal of capital or large debt-funded capital expenditure. About the Group The Jindal Dall group has been trading in pulses for more than four decades. Mr. Shiv Shanker Jindal and his son, Mr. Chirag Jindal, are partners in FCVK. Apart from FCVK, Mr. Shiv Shanker Jindal also owns and manages JSDM. JSDM also trades in pulses apart from processing pulses. Both the entities bid for government tenders to supply pulses for government programmes. The Jindal Dall group reported a profit after tax (PAT) of INR6.6 million on net sales of INR895.6 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR5 million on net sales of INR764.2 million for 2007-08. IGC INDIA: CRISIL Rates INR50.0 Million Letter of Credit at 'P4+' ----------------------------------------------------------------- CRISIL has assigned its 'P4+' rating to IGC India Mining & Trading Pvt Ltd's letter of credit facility. Facilities Ratings ---------- ------- INR50.0 Million Letter of Credit P4+ (Assigned) The rating reflects IGC-IMT's promoters' and management's limited experience in iron ore trading, small scale of operations in the intensely competitive iron ore trading industry, susceptibility to unfavorable changes in regulatory policies, geographical concentration in revenue profile, and susceptibility to volatility in the end-user industry. These rating weaknesses are partially offset by IGC-IMT's healthy financial risk profile, driven by support from its parent, India Globalisation Capital, Inc, and the benefits that IGC-IMT derives from its sound risk management policies. About IGC-IMT IGC-IMT was incorporated in December 2008, for export of iron ore fines to China. IGC-IMT is a 100-per-cent step-down subsidiary of India Globalisation Capital, Inc., through IGC-Mauritius. IGC- IMT's commercial operations started in July 2009. The company deals in iron ore fines with grades in the range of 50 to 55 Fe content. The company has set up its base in Goa and exports the goods from Goa port. The company has also set up a crusher to convert solid iron ore into iron ore fines, as exporters need iron ore fines. JET AIRWAYS: To Add 3 to 4 ATR Planes ------------------------------------- Jet Airways (India) Ltd. will add 3 to 4 ATR aircraft to its existing fleet in 6 to 9 months, the Economic Times reports, citing a senior official at the carrier. The report says Jet Airways operates a fleet of 112 aircraft including 14 ATR 72-500 models. K G Vishwanath, vice president, commercial strategy and investor relations, said the firm had not finalized whether it would be purchasing the aircraft or taking them on lease, the Economic Times relates. "Currently all of the ATRs are operated on the Jet Konnect fleet. For the incremental ATRs we will look at which routes to put them on," the report quoted Vishwanath as saying. According to the report, Jet's Chief Commercial Officer Sudheer Raghavan said Jet Konnect, the economy service of the airline operating only on domestic routes, is expected to see load factors rise with the addition of a new premium service within the Konnect flights. "Our assessment is that revenues are likely to go up by 8-10% for Jet Konnect," Raghavan told ET. Jet Konnect contributes about half of the group's domestic revenues currently, the report notes. About Jet Airways Jet Airways (India) Ltd (BOM:532617) -- http://www.jetairways.com/ -- provides air transportation. The geographic segments of the company are domestic and international. The company has a frequent flyer program named Jet Privilege wherein the passengers who uses the services of the airline become services of the airline become members of Jet Privilege and accumulates miles to their credit. The company's subsidiaries include Jet Lite (India) Limited, Jetair Private Limited, Jet Airways LLC, Trans Continental e Services Private Limited, Jet Enterprises Private Limited, Jet Airways of India Inc., India Jetairways Pty Limited and Jet Airways Europe Services N.V. On April 20, 2007, the company acquired Sahara Airlines Limited. * * * Jet Airways posted a consolidated net loss of INR9614.10 million for the year ended March 31, 2009, compared with consolidated net loss of INR6538.70 million for the year ended March 31, 2008. Consolidated total sales increased from INR109907.20 million for the year ended March 31, 2008 to INR134488.60 million for the year ended March 31, 2009. JINDAL SUPER: CRISIL Puts 'BB+' Rating on INR50 Mil. Cash Credit ---------------------------------------------------------------- CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank facilities of Jindal Super Dall Mills, which is part of the Jindal Dall group. Facilities Ratings ---------- ------- INR50.0 Million Cash Credit BB+/Stable (Assigned) INR25.0 Million Letter of Credit P4+ (Assigned) The ratings reflect the Jindal Dall group's weak financial risk profile, marked by a small net worth and poor debt protection metrics, small scale of operations, and exposure to risks related to intense competition in the agricultural commodities (agro- commodities) trading business, and to adverse changes in government regulations. These rating weaknesses are partially offset by the benefits that the Jindal Dall group derives from its promoters' extensive experience in the agro-commodities trading business. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of JSDM and Faqir Chand Vinod Kumar and Company (FCVK), together referred to as the Jindal Dall group. This is because the two entities are under a common ownership, and in the same line of business. Outlook: Stable CRISIL believes that the Jindal Dall group will continue to benefit from its strong track record in the agro-commodities trading business. The outlook may be revised to 'Positive' if there is a sharp, sustained increase in the group's profitability, leading to considerable increase in its net worth. Conversely, the outlook may be revised to 'Negative' if the group's financial risk profile deteriorates substantially, owing to significant withdrawal of capital or large debt-funded capital expenditure. About the Group The Jindal Dall group has been trading in pulses for more than four decades. Mr. Shiv Shanker Jindal and his son, Mr. Chirag Jindal, are partners in FCVK. Apart from FCVK, Mr. Shiv Shanker Jindal also owns and manages JSDM. JSDM also trades in pulses, apart from processing pulses. Both the entities bid for government tenders to supply pulses for government programmes. The Jindal Dall group reported a profit after tax (PAT) of INR6.6 million on net sales of INR895.6 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR5 million on net sales of INR764.2 million for 2007-08. NR INTERNATIONAL: CRISIL Upgrades Rating on INR150MM Cash Credit ---------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of NR International Ltd, which is part of the NRIL group, to 'B- /Stable/P4' from 'D/P5'. Facilities Ratings ---------- ------- INR150 Million Cash Credit Limits B-/Stable (Upgraded from 'D') INR150 Million Letter of Credit P4 (Upgraded from 'P5') The rating upgrade has been driven by the regularization of cash credit limit utilization by NRIL. There has been no instance of continuous over-utilization of cash credit limits for more than 30 days in the recent past by NRIL. The ratings reflect the NRIL group's weak financial risk profile marked by weak liquidity and debt protection metrics, its marginal market share, and its susceptibility to downtrends in the steel industry. These rating weaknesses are partially offset by the group's diversified revenue profile. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of NRIL and Satyam Casting (P) Ltd, together referred to as the NRIL group. This is because the promoters of NRIL and SCPL are planning to merge both the companies over the near term. Outlook: Stable CRISIL believes that the NRIL group will continue to benefit over the medium term from its diversified revenue profile and promoter's sound experience in the ingot-manufacturing and coal- trading businesses. The outlook may be revised to 'Positive' in case of more-than-expected increase in the group's revenues and profitability, or a significant improvement in its liquidity. Conversely, the outlook may be revised to 'Negative' if the group's financial risk profile deteriorates, most likely because of lower-than-expected capacity utilization or larger-than- expected debt-funded capital expenditure, adversely affecting its liquidity. About the Group NRIL, incorporated in 1991 by Mr. Nirmal Modi, manufactures ingots, imports and trades in coal and coke, transports coal and other materials through rakes and ships, and operates a retail outlet for Hindustan Petroleum Corporation Ltd. NRIL is listed on the Bombay Stock Exchange. NRIL's promoters own around 58 per cent of the company. The company has manufacturing capacities of 43,200 tonnes per annum (tpa), 60,000 tpa, and 28,880 tpa for ingots, low-ash metallurgical (LAM) coke, and hard coke, respectively. NRIL reported a profit after tax (PAT) of INR4.5 million on net sales of INR890.6 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR7.34 million on net sales of INR1010.8 million for 2007-08. SCPL is engaged in production of ingots, with an installed capacity of 25,000 tpa. SCPL reported a net loss of INR25.3 million on net sales of INR111.9 million for 2008-09, against a PAT of INR0.16 million on net sales of INR225.6 million for 2007-08. The NRIL group reported a net loss of INR20.8 million on net sales of INR1002.5 million for 2008-09, against a net profit of INR7.5 million on net sales of INR1236.5 million for 2007-08. POOJA LEISURE: CRISIL Rates INR150 Mil. Long-Term Loan at 'BB-' --------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable' rating to Pooja Leisure and Lifestyle's term loan facility. Facilities Ratings ---------- ------- INR150.0 Million Long-Term Loan BB-/Stable (Assigned) The rating reflects PLL's exposure to risks related to insufficient demand and absence of binding lease agreements for its upcoming commercial real estate project. These rating weaknesses are partially offset by PLL's moderate financial risk profile, supported by regular equity infusion by the partners, and expected healthy liquidity. Outlook: Stable CRISIL believes that PLL will continue to benefit over the medium term from the regular and timely funding support from the partners. The outlook may be revised to 'Positive' in case the firm stabilizes its operations (leasing of properties) successfully, resulting in stable cash flows. Conversely, the outlook may be revised to 'Negative' if the firm's financial risk profile deteriorates and it contracts further debt to fund its capital expenditure. The outlook may also be revised to 'Negative' if PLL is unable to market its inventories in a time- bound manner, there are significant delays in completion of the project, and in case of a slump in the demand for commercial real estate. About Pooja Leisure PLL is a partnership firm incorporated in 2007 for setting up a commercial project in the Juhu area of Mumbai. Mr. Vashu Bhagnani (the proprietor of POOJA Constructions), his wife Mrs. Puja Bhagnani, and his son Mr. Jacky Bhagnani are the three partners of the firm; however, day to day operations are looked after by Mr. Vashu Bhagnani. Initially, the partners had planned to set up a luxury hotel; however, within months of project commencement, they decided to develop a commercial (office/retail) complex for leasing out. ========= J A P A N ========= GEOS CORP: President Wants Bankruptcy Proceedings Halted -------------------------------------------------------- Tsuneo Kusunoki, the founder and president of Geos Corp., said Thursday he will ask the Tokyo District Court to avert bankruptcy proceedings for the major language school operator, Japan Today reports. Japan Today says Mr. Kusunoki expressed his intention a day after Geos' bankruptcy filing. "A company has come forward to extend financial support to Geos, so it does not have to go bankrupt," the report quoted Mr. Kusunoki as saying. Japan Today relates Mr. Kusunoki said an executive in charge of financial affairs, who is one of the three board members at Geos including Kusunoki, decided to file for bankruptcy protection. Mr. Kusunoki said he considering taking countermeasures as he did not agree with the executive's decision, the report adds. According to the report, the financial executive and some other Geos officials, who filed for bankruptcy, told reporters Wednesday that although there was disagreement in the company's management over whether it should go bankrupt, the application for court protection was legal. But a lawyer for Mr. Kusunoki said the application may have constituted an abuse of rights, the report notes. Japan Today states that stopping the bankruptcy proceedings, however, may be difficult as it has already been decided that of the 329 schools operated by Tokyo-based Geos, 230 will be handed over to G.communication Co. "I would like to protect as many students and employees as possible," Mr. Kusunoki said, adding that the transfer of so many schools to G.communication would make it difficult to save them. According to the report, Mr. Kusunoki is expected to voice his opposition when the Tokyo court holds a hearing with parties concerned to decide whether it should order the launch of bankruptcy proceedings. Classes Resume The Yomiuri Shimbun reports that G.communication said 201 of the 230 schools it will take over from Geos resumed classes on Friday. Classes at the remaining schools will restart soon, according to G.communication. As reported in the Troubled Company Reporter-Asia Pacific, Geos filed for bankruptcy proceeding with the Tokyo District Court on April 21, 2010. It has debts of about JPY75 billion. The English school operator will hand over 230 schools in Japan to subsidiary G.communication and the rest will be closed. About Geos Corp. Based in Tokyo, Japan, Geos Corp. operates 329 language schools and has approximately 36,800 students. Geos also runs language schools in the United States, Canada, France, Thailand and other countries. GODO KAISHA: Moody's Withdraws Ratings on Mercury01 Notes --------------------------------------------------------- Moody's Investor Service announced it has withdrawn the ratings of Mercury01 following the termination of the transaction and full redemption of the Loan. Issuer: Godo Kaisha Mercury01 -- JPY29,235,000,000, Class A, Withdrawn; previously on April 27, 2009 Downgraded to A2 -- JPY300,000,000, Class B-1, Withdrawn; previously on December 18, 2009 Downgraded to B3 -- JPY3,000,000,000, Class B-2, Withdrawn; previously on December 18, 2009 Downgraded to B3 -- JPY3,000,000,000, Loan, Withdrawn; previously on December 18, 2009 Downgraded to B3 This is a risk transfer CDO transaction referencing a pool of J- REIT debt obligations held by Mitsubishi UFJ Trust and Banking Corporation. The withdrawal of the ratings follows the termination of the transaction and full redemption of the Loan on April 20, 2010, prior to the scheduled maturity date, according to the agreement between Mitsubishi UFJ Trust Banking, Godo Kaisha Mercury01, and all loan lenders. Moody's Investors Service is a publisher of rating opinions and research. It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold, or sell securities. JAPAN FINANCE: Moody's Reviews Ratings on Two Japan SME CLOs ------------------------------------------------------------ Moody's Investors Service announced that it has placed under review for possible upgrade its ratings of two Japan SME CLOs by the Japan Finance Corporation (formerly, Japan Finance Corporation for Small and Medium Enterprise): The rating actions are: -- CLO in September 2006 of Regional Financial Institutions * JPY10,500,000,000 Senior Trust Certificates, A1 placed under review for possible upgrade; previously on November 13, 2009, upgraded to A1 from A3 * JPY250,000,000 Mezzanine Trust Certificates, Ba2 placed under review for possible upgrade; previously on November 13, 2009, upgraded to Ba2 from B2 -- CLO in June 2007 of Regional Financial Institutions * JPY11,900,000,000 Senior Trust Certificates, A3 placed under review for possible upgrade; previously on February 5, 2010, upgraded to A3 from Baa3 * JPY180,000,000 Mezzanine Trust Certificates, B1 placed under review for possible upgrade; previously on February 5, 2010, upgraded to B1 from Caa3 These are cash CLO transactions backed by corporate loans in the form of (1) SME loans originated by regional financial institutions and purchased by JFC under its "purchase scheme" securitization program and (2) SME loans originated by JFC under its "self-origination scheme" securitization program. In both cases, the SME loans were originated with the intention of securitizing them. The actions reflect the growing likelihood of a ratings upgrade because of the transaction's improved credit profile stemming from a lower-than-expected number of recent assets defaulting and the ongoing amortization of the senior tranches. According to the originator's collection reports and the trustee's reports for April, in the first quarter of calendar 2010, only two transactions, amounting to JPY24 million, in this cash CLO series defaulted -- both in the CLO in June 2007. Moody's notes that while the defaults have been lower than expected, new delinquencies in the six transactions of this cash CLO series (including the two transactions affected by the actions) keep occurring generally. While the effects from lower- than-expected defaults and the rise in delinquency must be analyzed, Moody's believes that the ratings of these two transactions are likely to be upgraded as the positive effect from low default experience and ongoing amortization is expected to outweigh the negative effect from rising delinquencies. Moody's plans to update the expected default rate assumption for each transaction in the coming weeks, taking into account the trends in default rates and delinquencies. Additional considerations will also be given to the overall Japanese macro economy and the business environment and financing situation for SMEs. SOFTBANK CORP: S&P Raises Corporate Credit Rating to 'BB+' ---------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit and senior unsecured debt ratings on Softbank Corp. to 'BB+' from 'BB'. The upgrade reflects S&P's expectation to see steady improvement in Softbank's financial risk profile in coming years, based on: 1) increased stability in Softbank's earnings base through steady improvements in its profitability and cash flow generation, and 2) the company's clear financial policy to improve its debt leverage and credit profile by reducing its debt. The outlook on the long-term corporate credit rating is stable. Softbank has maintained its solid operating and financial performance and the company reported increased sales and profits during the nine months ended December 2009, while its two major competitors, Nippon Telegraph & Telephone Corp. (AA/Stable/A-1+) and KDDI Corp. reported a drop in sales and profits for the same period. Standard & Poor's believes that the stability of Softbank's earnings base has increased steadily, as the company's major business segments continue to make profit contributions from stable profits. The Mobile Communications segment, which accounts for about 60% of Softbank's consolidated revenues and roughly half of consolidated operating profit, has maintained a steady increase in its subscriber base and has reversed its declining trend in ARPU (monthly average revenue per user). The Broadband Infrastructure segment, which faces a shrinking asymmetric digital subscriber line service market, continues to make stable contributions to profit and cash flow through rigorous cost cutting and reduced capital expenditures. The other business segments are also recording steady operating and financial performances; The Fixed-Telecommunications segment has reported profits since March 2008, and the Internet Culture segment also continues to report high profits amid the weak economic recovery. Softbank is projected to report another record profit in fiscal 2009 (ended March 31, 2010). Standard & Poor's believes that the company will maintain its solid operating and financial performance in the medium term. S&P also expects to see steady improvement in the company's financial risk profile in coming years, based on the company's clear financial policy to improve its debt leverage and credit profile by reducing its debt. Softbank has announced that its financial target is to be net debt-free (excluding lease obligations) by fiscal 2014 (ending March 31, 2015). S&P also believes that the company has strengthened its relationships with major domestic banks in the past few years and S&P view this as a positive factor for the company's financial risk profile. On the other hand, however, Standard & Poor's believes that Softbank's aggregate debt level, including lease and other debt- like obligations, is high, although the company has gradually reduced its debt over the past two years. Even after incorporating Softbank's steady improvement in cash flow generation in recent years, S&P expects Softbank's target of becoming net debt free by March 31, 2015, to be a key challenge. S&P does not expect to see an accelerated improvement in Softbank's capital structure within the next year or so, as S&P believes the company is likely to increase its capital expenditures in fiscal 2010 to accommodate an increase in subscribers and data traffic in its Mobile Communications operations. Therefore, for the company to accelerate debt reduction to achieve its financial target, S&P believes the company may need to take additional measures, such as asset sales, in addition to continuous improvement in its cash flow generation. Softbank raised capital to acquire Softbank Mobile through a whole business securitization. Standard & Poor's recognizes that the cash flow generated from this business will be prioritized as repayment funds for the whole business securitization transaction. As a result, cash flows generated from Softbank Mobile will not benefit the company as long as the securitization transaction exists. Although advantages such as stronger collaboration and synergy effects between the Mobile Communications operations and Softbank's other businesses are incorporated into S&P's business risk profile analysis, Standard & Poor's believes that the rating analysis of Softbank requires segregation of the financial profiles of the mobile business and other businesses. However, S&P also believes that there is an increasing possibility that Softbank will replace the existing WBS loans with other refinancing schemes in the next few years, given the solid operating performance of the mobile business and a track record of progress in the repayment of WBS loans. Therefore, S&P believes it necessary to incorporate operating and financial performance, as well as funding plans, of the mobile business into S&P's analysis of Softbank's financial risk profile for the medium term. The outlook on the long-term corporate credit rating is stable. The competitive environment among the three major Japanese telecommunications providers is expected to remain generally stable in the near to medium term, and Standard & Poor's believes it is likely that the company will maintain its solid operating and financial performance in the medium term. While Standard & Poor's believes that the company's current key financial ratios, such as debt to capital or FFO to debt, are weak for the current ratings level, S&P expects to see steady improvement in Softbank's financial risk profile. For the rating to experience upward movement, S&P believes that clearer prospects for an improvement in the company's financial profile are necessary. S&P also believe it essential to see a more formal and clearer plan of its refinancing of WBS loans, as S&P believes that there is an increasing possibility for Softbank to replace the existing WBS loans with other refinancing schemes. Conversely, S&P would consider a downgrade if: 1) the competitive environment for the telecommunication industry deteriorates rapidly, 2) the competitiveness and profitability of the Mobile Communications and other segments face rapid deterioration, or 3) the company's financial improvement is overly delayed or becomes increasingly less likely due to increased capital expenditures or other reasons. ========= K O R E A ========= HYUNDAI MOTOR: Posts KRW1.1 Trillion Net Profit in Q1 ----------------------------------------------------- Hyundai Motor Co. sold 842,037 units globally in the first quarter, a 36.6% increase from a year earlier, helped by the launch of new models and strong demand in overseas markets. Net profit increased almost five-fold to KRW1.13 trillion, boosted by a surge in equity earnings from overseas subsidiaries such as China and India. Operating profit also rose to KRW702.7 billion compared to KRW153.8 billion a year earlier, while sales increased 39.6% to KRW8.4 trillion. Hyundai's jump in first-quarter earnings can be attributed to the successful launch of its new models such as the all-new Sonata and Tucson ix (named Tucson/ix35 in other regions). Global auto demand, especially in emerging markets, is also showing signs of a recovery, boosting sales. Hyundai's operating profit margin also rose to 8.3% from 2.5% during the same period a year earlier. Headquartered in Seoul, South Korea, Hyundai Motor Company (SEO:005380) -- http://worldwide.hyundai.com/-- is an automobile manufacturer. The company markets the Genesis, Genesis Coupe, Azera, Sonata, Elantra, Accent, Getz, i30, i30cw, i20 and i10 passenger cars; the Veracruz, Santa Fe, Tucson, Matrix, H-1 recreational vehicles, and commercial vehicles, which include medium and heavy duty trucks, van trucks, tank lorries, bulk cement carriers, bulk cement tractors and others. * * * As reported in the Troubled Company Reporter-Asia Pacific on December 11, 2009, Fitch Ratings revised the Outlook on Hyundai Motor's and Kia Motors' foreign currency Long-term Issuer Default Ratings to Positive from Negative, and simultaneously affirmed them at 'BB+'. The agency also affirmed the 'BB+' rating on both companies' senior unsecured debt and the Short-term IDRs at 'B'. HMC's and Kia's Long-term IDR was downgraded to 'BB+' with Negative Outlook in January 2009, due to concerns that the global auto market downturn would negatively impact the profitability and key credit metrics of the companies to an extent that is not commensurate to investment grade levels. =============== M A L A Y S I A =============== AXIS INC: Has Until June 30 to Submit Regularization Plan --------------------------------------------------------- Bursa Malaysia Securities Berhad has granted Axis Incorporation Berhad an extension of time until June 30, 2010, to undertake a regularization plan that complies with paragraph 3.1 of Practice Note 17 of the Main Market Listing Requirements and submit the regularization plan to Bursa Securities for approval. Axis is also required to comply with paragraph 5.2(c) of Practice Note 17 of the Main Market LR to record a net profit in two consecutive quarterly results immediately after the completion of the implementation of the regularization plan. The bourse said Axis must ensure that the relevant quarterly results are subjected to a limited review by an external auditor before they are announced to Bursa Securities. Bursa Securities further decided that the extension of time is without prejudice to Bursa Securities' right to exercise its power under paragraph 8.14C(1) of the Listing Requirements of Bursa Securities read together with paragraph 4.1 of Practice Note 29 of the Main Market LR to proceed to de-list the securities of the Company in the event: (i) the Company fails to submit the regularization plan to Bursa Securities for approval within the Extended Timeframe; (ii) the Company fails to obtain the approval for the implementation of its regularization plan and does not appeal within the timeframe (or extended timeframe, as the case may be) prescribed to lodge an appeal; (iii) the Company does not succeed in its appeal; or (iv) the Company fails to implement its regularization plan within the timeframe or extended timeframe stipulated by Bursa Securities. Upon occurrence of any of the events set out in (i) to (iv), the securities of the Company shall be removed from the Official List of Bursa Securities upon the expiry of 7 market days from the date the Company is notified by Bursa Securities or such other date as may be specified by Bursa Securities. About Axis Inc. Based in Johor Bahru, Malaysia, Axis Incorporation Berhad (KUL:AXIS) -- http://www.chongee.com.my-- is principally engaged in the business of investment holding. The company, through its subsidiaries, is engaged in fabric knitting and dyeing, and manufacturer of garments. Its subsidiaries include Asiapin Sdn. Bhd., Chongee Enterprise Sdn. Bhd. and GBC Marketing Pte. Ltd. In June 2008, Axis Incorporation Berhad announced the disposal of the entire equity interest in Ganad Corporation Bhd. On May 23, 2009, Axis Incorporation Berhad was classified as an affected issuer under the Amended Practice Note No. 17/2005 and Paragraph 8.14C of the Listing Requirements of Bursa Malaysia Securities Berhad as the Company was unable to provide a solvency declaration to Bursa Securities. MALAYSIAN MERCHANT: Bourse Orders Firm to Start Audit Soon ---------------------------------------------------------- Bursa Malaysia Securities Berhad has directed Malaysian Merchant Marine Berhad to immediately engage Messrs. Ernst & Young to commence its audit of MMM' s financial statement for the financial year ended March 31, 2010, to ensure timely submission of its financial statements in accordance with the Main Market Listing Requirements. In addition, the Company is required to provide Bursa Malaysia with a written confirmation as to the details of the appointment of the external auditors including the date of appointment and audit timeframes. Malaysian Merchant Marine Berhad is a Malaysia-based investment holding company engaged in transportation of goods by sea and the provision of ship management services. The principal activities of the subsidiary companies are those of transportation of goods by sea and provision of logistics services. The Company's operating subsidiaries include MMM Panama Inc., MMM Suez Inc., Splendid Eminent Sdn. Bhd., Oceanwealth Fountain Sdn. Bhd., Malaysian Pacific Ocean Line Sdn. Bhd., Pan Asia Ocean Line Sdn. Bhd., Prestige Splendour Sdn. Bhd., Ample Remark Sdn. Bhd., Edgewise Fairway Sdn. Bhd., and Malaysian Ocean Line Sdn. Bhd. * * * Malaysian Merchant Marine Berhad has been classified as an affected listed issuer as the Company's wholly-owned subsidiary, Erayear Solution Sdn Bhd, is unable to complete the purchase of a chemical tanker under a Memorandum of Agreement signed with Uniships Pte Ltd on January 8, 2010. MALAYSIAN MERCHANT: Served With Writs Of Summons ------------------------------------------------ Malaysian Merchant Marine Berhad has been served with a Writ of Summons and a Statement of Claim by Siew & Partners on behalf of Dato' Ramesh Rajaratnam, the Executive Deputy Chairman of MMM. The Writ and Statement relates to Dato' Ramesh Rajaratnam's employment contract. Dato' Ramesh Rajaratnam is claiming for the of MYR5,630,710 including interest at 8% per annum and the related legal costs and any other costs that the court deems fit. At present, the Company does not have sufficient funds to pay the amount claimed. The Company is considering all options, including seeking legal advice on the said claim. About Malaysian Merchant Malaysian Merchant Marine Berhad is a Malaysia-based investment holding company engaged in transportation of goods by sea and the provision of ship management services. The principal activities of the subsidiary companies are those of transportation of goods by sea and provision of logistics services. The Company's operating subsidiaries include MMM Panama Inc., MMM Suez Inc., Splendid Eminent Sdn. Bhd., Oceanwealth Fountain Sdn. Bhd., Malaysian Pacific Ocean Line Sdn. Bhd., Pan Asia Ocean Line Sdn. Bhd., Prestige Splendour Sdn. Bhd., Ample Remark Sdn. Bhd., Edgewise Fairway Sdn. Bhd., and Malaysian Ocean Line Sdn. Bhd. * * * Malaysian Merchant Marine Berhad has been classified as an affected listed issuer as the Company's wholly-owned subsidiary, Erayear Solution Sdn Bhd, is unable to complete the purchase of a chemical tanker under a Memorandum of Agreement signed with Uniships Pte Ltd on January 8, 2010. RAMUNIA HOLDINGS: To Hold Scheme Creditors' Meeting on May 7 ------------------------------------------------------------ The High Court of Malaya has directed a Meeting of the Scheme Creditors of Ramunia Fabricators Sdn Bhd, a wholly owned subsidiary of Ramunia Holdings, to be convened on May 7, 2010 at 10:30 a.m. The meeting will be held at Dewan Seroja, Kelab Golf Perkhidmatan Awam, Bukit Kiara, Off Jalan Damansara, 60000, in Kuala Lumpur. On April 16, 2010, RFSB issued and despatched an explanatory statement to its unsecured creditors to deliberate and approve the proposed scheme of arrangement pursuant to Section 176 (1) of the Companies Act, 1965. The Proposed Scheme will not have any effect on the group structure, share capital and substantial shareholders structure of RFSB. The Proposed Scheme is also not expected to have any material effect on the net assets, earnings or gearing of the Group. However, it is envisaged that with the repayment of the proposed settlement to Scheme Creditors, RFSB will be able to recognize a one-time gain, representing the amount of debt waived from the proposed settlement. The implementation of the Proposed Scheme is conditional upon: (a) Completion of the proof of debt exercise; (b) the Scheme Creditors approving the Proposed Scheme by the requisite majority at the CCM to be convened on May 7, 2010; (c) the approval and order of the High Court of the Proposed Scheme pursuant to Section 176(3) of the Act within thirty (30) days of condition (b) being achieved; (d) the lodgment of the Order with the Companies Commission of Malaysia within seven (7) days of condition (c) being achieved; and (e) The completion of the Proposed Disposal of the Teluk Ramunia Fabrication Yard together with all movable and immovable assets located thereon to Sime Darby Engineering Sdn Bhd. The Proposed Scheme is to be subject to such modifications or conditions as the High Court may approve or impose and RFSB may consent on behalf of all concerned to any modifications or additions to the Proposed Scheme. The Proposed Scheme only involves RFSB and does not involve RAHB and/or its other subsidiaries. About Ramunia Holdings Based in Kuala Lumpur, Malaysia, Ramunia Holdings Berhad is engaged in investment holding and provision of management services. Its wholly owned subsidiaries include Ramunia Fabricators Sdn. Bhd., which is engaged in fabrication of offshore oil and gas related structure and other related civil works; Ramunia International Holdings Ltd., which is engaged in offshore investment holding; Ramunia International Services Ltd., which is engaged in upstream activities of the oil and gas industry; Ramunia Optima Sdn. Bhd., which is engaged asset owning company, specifically holding ownership of marine vessels; Globe World Realty Sdn. Bhd., which is engaged in yard development and management of the Company's fabrication yards; Ramunia Training Services Sdn. Bhd., which is provision of training and related services, and O & G Works Sdn. Bhd., which is engaged in provision of management and administration services. * * * Ramunia Holdings Berhad has been considered as an Affected Listed Issuer under Practice Note No. 17 of the Bursa Malaysia Securities Berhad. The Company triggered the PN 17/2005 listing since auditors have expressed a modified opinion with emphasis on the company's going concern status in the latest audited accounts for the financial year ended October 31, 2009, and the company's shareholders equity on a consolidated basis is equal to or less than 50% of the issued and paid-up capital of the company. RAMUNIA HOLDINGS: Completes Sale of Fabrication Yard to Sime Darby ------------------------------------------------------------------ Ramunia Holdings Berhad disclosed that it has completed the proposed disposal of Teluk Ramunia Fabrication Yard together with all moveable and immoveable assets located thereon to Sime Darby Engineering Sdn Bhd for a final disposal consideration of MYR515 million which has been agreed upon between RAHB, Ramunia Optima Sdn Bhd and SDE subsequent to the completion of the asset tagging exercise. Based in Kuala Lumpur, Malaysia, Ramunia Holdings Berhad is engaged in investment holding and provision of management services. Its wholly owned subsidiaries include Ramunia Fabricators Sdn. Bhd., which is engaged in fabrication of offshore oil and gas related structure and other related civil works; Ramunia International Holdings Ltd., which is engaged in offshore investment holding; Ramunia International Services Ltd., which is engaged in upstream activities of the oil and gas industry; Ramunia Optima Sdn. Bhd., which is engaged asset owning company, specifically holding ownership of marine vessels; Globe World Realty Sdn. Bhd., which is engaged in yard development and management of the Company's fabrication yards; Ramunia Training Services Sdn. Bhd., which is provision of training and related services, and O & G Works Sdn. Bhd., which is engaged in provision of management and administration services. * * * Ramunia Holdings Berhad has been considered as an Affected Listed Issuer under Practice Note No. 17 of the Bursa Malaysia Securities Berhad. The Company triggered the PN 17/2005 listing since auditors have expressed a modified opinion with emphasis on the company's going concern status in the latest audited accounts for the financial year ended October 31, 2009, and the company's shareholders equity on a consolidated basis is equal to or less than 50% of the issued and paid-up capital of the company. RAMUNIA HOLDINGS: Expects to Step Out of PN17 by Year-End --------------------------------------------------------- Ramunia Holdings Bhd hopes to get over from Practice Note 17 status by the end of year, according to BERNAMA.com. "We have 12 months to pull in the financial regularisation plan, hopefully we can get over it as soon as possible," the report quoted Ramunia Chairman Datul Azizan Abdul Rahman as saying at a press conference after the company's annual general meeting. Ramunia currently has borrowings of MYR347 million, BERNAMA.com notes. "We will meet with unsecured creditors on May 7 to carry out the payment scheme," Azizan said. Based in Kuala Lumpur, Malaysia, Ramunia Holdings Berhad is engaged in investment holding and provision of management services. Its wholly owned subsidiaries include Ramunia Fabricators Sdn. Bhd., which is engaged in fabrication of offshore oil and gas related structure and other related civil works; Ramunia International Holdings Ltd., which is engaged in offshore investment holding; Ramunia International Services Ltd., which is engaged in upstream activities of the oil and gas industry; Ramunia Optima Sdn. Bhd., which is engaged asset owning company, specifically holding ownership of marine vessels; Globe World Realty Sdn. Bhd., which is engaged in yard development and management of the Company's fabrication yards; Ramunia Training Services Sdn. Bhd., which is provision of training and related services, and O & G Works Sdn. Bhd., which is engaged in provision of management and administration services. * * * Ramunia Holdings Berhad has been considered as an Affected Listed Issuer under Practice Note No. 17 of the Bursa Malaysia Securities Berhad. The Company triggered the PN 17/2005 listing since auditors have expressed a modified opinion with emphasis on the company's going concern status in the latest audited accounts for the financial year ended October 31, 2009, and the company's shareholders equity on a consolidated basis is equal to or less than 50% of the issued and paid-up capital of the company. ===================== P H I L I P P I N E S ===================== LIBERTY TELECOMS: Appellate Court Junks Bid to Halt Rehabilitation ------------------------------------------------------------------ The Manila Times reports that the Court of Appeals has denied Rizal Commercial Banking Corp.'s petition to terminate the implementation of Liberty Telecoms Holdings Inc.'s rehabilitation. The Troubled Company Reporter-Asia Pacific, citing the Business World, reported on May 26, 2008, that Liberty Telecoms asked a Makati regional trial court to reject RCBC's motion to terminate the company's rehabilitation and have it liquidated, saying it goes against the purpose of corporate rehabilitation. According to Business World, RCBC filed the motion arguing that the company has lost the opportunity to revive its operations. Business World said Liberty Telecoms in 2005 promised the court it could resuscitate itself by operating a nationwide voice and data network or with an assigned 700-Mhz frequency from the National Telecommunications Commission. RCBC said in the report that the frequency supposedly assigned to Liberty Telecoms had been assigned to Smart Broadband Inc. and asked the court to summon the NTC to clarify the issues hounding the telco's case. Liberty Telecoms, however, denied that the 700MHz frequency had been assigned to SBI and claimed the frequency was still in the company's name. About Liberty Telecoms Manila-based Liberty Telecoms Holdings Inc. was incorporated on January 14, 1994, and designed primarily to be the holding company for Liberty Broadcasting Network Inc. and Skyphone Logistics Inc. LIB was listed as a public company at the Philippine Stock Exchange on October 17, 1994. In April 2005, the management of LIB decided to suspend its business operations due to lack of capital required to operate and grow the business. In August 2005, the group of companies filed with a Regional Trial Court in Makati City a petition for corporate rehabilitation as part of LIB's plan to resolve and to continue normal operations. The Court issued a stay order of all the outstanding liabilities of LIB and its affiliates and prevented creditors from foreclosing its assets. The Makati City Regional Trial Court approved Liberty's rehabilitation plan in December 2006. ================= S I N G A P O R E ================= ASIAN MINERALS: Court Enters Wind-Up Order ------------------------------------------ The High Court of Singapore entered an order on April 16, 2010, to wind up the operations of Asian Minerals & Ores Pte Ltd. Chahaya Shipping & Trading Co Pte Ltd filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road, #05-11/#06-11 Singapore 069118 AUTOHUB ASIA: Court Enters Wind-Up Order ---------------------------------------- The High Court of Singapore entered an order on April 9, 2010, to wind up the operations of Autohub Asia Pte Ltd. DBS Bank Ltd filed the petition against the company. The company's liquidator is: Official Receiver The URA Centre East Wing #06-11 45 Maxwell Road Singapore 069118 CHUAN SIANG: Court Enters Wind-Up Order --------------------------------------- The High Court of Singapore entered an order on April 9, 2010, to wind up the operations of Chuan Siang Enterprises(s) Pte Ltd. NSC Management Services Pte Ltd filed the petition against the company. The company's liquidator is: Mr Wee Koon San C/o M/s Wee Koon San & Co. 51 Bukit Batok Crescent #08-04 Unity Centre Singapore 658077 EASTERN ISLAND: Creditors' Proofs of Debt Due May 23 ---------------------------------------------------- Eastern Island Base Pte Ltd, which is in liquidation, requires its creditors to file their proofs of debt by May 23, 2010, to be included in the company's dividend distribution. The company's liquidator is: Lau Chin Huat C/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 FORTUNE DESIGN: Court Enters Wind-Up Order ------------------------------------------ The High Court of Singapore entered an order on April 9, 2010, to wind up the operations of Fortune Design & Renovation Pte Ltd. NSC Management Services Pte Ltd filed the petition against the company. The company's liquidator is: Mr Wee Koon San C/o M/s Wee Koon San & Co. 51 Bukit Batok Crescent #08-04 Unity Centre Singapore 658077 IMAGEAIRE PTE: Court Enters Wind-Up Order ----------------------------------------- The High Court of Singapore entered an order on April 9, 2010, to wind up the operations of Imageaire Pte Ltd. Lantrovision(s) Ltd filed the petition against the company. The company's liquidator is: The Official Receiver 45 Maxwell Road #06-11 The URA Centre (East Wing) Singapore 069118 INSERVE (S) PTE: Members' Final Meeting Set for May 24 ------------------------------------------------------ Members of Inserve (s) Pte Ltd, will hold their final meeting on May 24, 2010, at 11:00 a.m., at the 1 Scotts Road, #21-08 Shaw Centre, Singapore 228208. At the meeting, Chia Lay Beng, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. L&M EQUIPMENT: Court to Hear Wind-Up Petition on May 7 ------------------------------------------------------ A petition to wind up the operations of L&M Equipment Pte Ltd (formerly known as L&M Engineering Logistics Pte Ltd) will be heard before the High Court of Singapore on May 7, 2010, at 10:00 a.m. L&M.Com Pte Ltd (formerly known as L&M Holdings Pte Ltd) filed the petition against the company on February 12, 2010. The Petitioner's solicitor is: Ng Chong & Hue LLC 96 Robinson Road #15-01/02 SIF Building Singapore 068899 L&M INFRATECH: Court to Hear Wind-Up Petition on May 7 ------------------------------------------------------ A petition to wind up the operations of L&M Infratech Pte Ltd (formerly known as L&M Envirocare Pte Ltd) will be heard before the High Court of Singapore on May 7, 2010, at 10:00 a.m. L&M.Com Pte Ltd (formerly known as L&M Holdings Pte Ltd) filed the petition against the company on February 12, 2010. The Petitioner's solicitor is: Ng Chong & Hue LLC 96 Robinson Road #15-01/02 SIF Building Singapore 068899 L&M PETROMAS: Court to Hear Wind-Up Petition on May 7 ----------------------------------------------------- A petition to wind up the operations of L&M Petromas Pte Ltd (formerly known as L&M Impex Pte Ltd) will be heard before the High Court of Singapore on May 7, 2010, at 10:00 a.m. L&M.Com Pte Ltd (formerly known as L&M Holdings Pte Ltd) filed the petition against the company on February 12, 2010. The Petitioner's solicitor is: Ng Chong & Hue LLC 96 Robinson Road #15-01/02 SIF Building Singapore 068899 M.E.I. ENGINEERS: Court Enters Wind-Up Order -------------------------------------------- The High Court of Singapore entered an order on April 16, 2010, to wind up the operations of M.E.I. Engineers Pte Ltd. Gea Batignolles Thermal Technologies (Changshu) Co., Ltd filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road, #05-11/#06-11 Singapore 069118 MOBILE & WIRELESS: Creditors Get 100% and 1.23% Recovery on Claims ------------------------------------------------------------------ Mobile & Wireless Group Pte Ltd will declare the final dividend on April 29, 2010. The company will pay 100% to the received preferential claims and 1.23% for the ordinary claims. The company's liquidators are: Chee Yoh Chuang Lim Lee Meng c/o Stone Forest Corporate Advisory Pte Ltd 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 ORIENT NETWORKS: Creditors Get 0.78956% Recovery on Claims ---------------------------------------------------------- Orient Networks Holdings Limited declared the first and final dividend on April 23, 2010. The company paid 0.78956% to the received claims. The company's liquidator is: Kon Yin Tong 47 Hill Street #05-01 Singapore Chinese Chamber of Commerce & Industry Building Singapore 179365 PRESTIGE BUILDING: Court Enters Wind-Up Order --------------------------------------------- The High Court of Singapore entered an order on April 16, 2010, to wind up the operations of Prestige Building Maintenance Services Pte Ltd. United Overseas Bank Limited filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road, #05-11/#06-11 Singapore 069118 TW OILS: Court to Hear Wind-Up Petition on May 7 ------------------------------------------------ A petition to wind up the operations of TW Oils & Fats (Singapore) Pte Ltd will be heard before the High Court of Singapore on May 7, 2010, at 10:00 a.m. Carotino SDN BHD filed the petition against the company on April 12, 2010. The Petitioner's solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00 AIA Tower Singapore 048542 =========== T A I W A N =========== ASUSTEK COMPUTER: Sees Better-than Expected Q2 Business Prospects ----------------------------------------------------------------- ASUSTeK Computer Inc. is optimistic about its business prospects in the second quarter due to better-than expected performance in the first quarter, the China Post reports citing company executives. According to the Post, Asustek CEO Jerry Shen said the company's first quarter revenue totaled NT$74.807 billion (US$2.38 billion), only a 6.24% drop from its fourth quarter revenue -- better than the previous forecast of a 10% to 20% contraction. The Post relates the company's March revenue hit NT$31.71 billion, an increase of 56% from February and a 71% year-on-year growth. Mr. Shen also sees Asustek's revenue to expand from quarter to quarter this year, thanks to rebounding business around the world, particularly in eastern Europe, according to the Post. Meanwhile, Dow Jones Newswires, citing the Economic Daily News, reports that Mr. Shen said Asustek Computer expects its monthly revenue in year 2011 to be NT$10 billion to NT$20 billion higher than the year-earlier month. ASUSTeK Computer Inc. -- http://www.asus.com.tw/-- is principally engaged in the provision of computers, communications and consumer electronics solutions. The Company offers desktop motherboards, server motherboards, three-dimension graphics display cards, audio cards, laptops, servers, smart personal digital assistant mobile phones, liquid crystal displays, LCD televisions, broadband communication products, compact disc read-only memory drives, digital versatile disc drives, disc carving machines and Eee personal computers, among others. The Company distributes its products in domestic market and to overseas markets, including the United States, Canada, Asia Pacific, Europe and Africa. * * * Asustek Computer continues to carry Fitch Ratings 'BB+' long-term foreign currency issuer default ratings. AU OPTRONICS: Swings to NT$7.27 Billion Net Profit in Q1 -------------------------------------------------------- AU Optronics Corp. announced its unaudited results for the first quarter of 2010. AUO swung to a net income of NT$7.27 billion (US$229 million) in the first quarter of 2010 from a net loss of NT$20 billion a year earlier. For the first quarter ended March 31, 2010, AUO posted consolidated revenue of NT$111.56 billion (US$3.51 billion), down 2.9% from the previous quarter. Gross profit improved 62.8% quarter-over-quarter to NT$14.27 billion (US$450 million), representing a gross margin of 12.8%. Operating income, on the other hand, reached NT$8.12 billion (US$256 million), with an impressive quarterly growth rate of 327.9% and an operating margin of 7.3%. For the first quarter, AUO's large-sized panels totaled 27.22 million units, down 0.6% quarter-over-quarter but up significantly 107.1% year-over-year. In terms of small- and medium-sized panels, the shipment was over 56.99 million units, down 5.2% quarter-over- quarter but up 32.7% year-over-year. "Although the first quarter was the traditional low season, we have seen relatively stable panel prices thanks to recovering global demand and healthy inventory levels in the channel," said Mr. Andy Yang, Chief Financial Officer of AUO. "As a result, the Company's average selling price per square meter dropped by merely 1.6% from the previous quarter. In addition, the management team has taken a proactive approach toward product mix improvements. On rising high-end product mix and the design efforts which helped lower our costs effectively, our gross margin picked up from last quarter's 7.6% to 12.8% this quarter. Meanwhile, our operating margin also increased considerably from 1.7% last quarter to 7.3%. Being noteworthy, our EBITDA margin expanded to 27.6% for the first quarter." About AU Optronics Based in Taiwan, AU Optronics Corp. -- http://www.auo.com/-- designs, develops, manufactures, assembles and markets flat panel displays. The Company's principal products are thin-film transistor-liquid crystal display (TFT-LCD) panels. Its panels are used in computer products, such as notebook computers and desktop monitors; consumer electronics products, such as mobile phones, digital photo frames, digital still cameras, portable navigation display, portable digital video disc players, LCD televisions, and industrial displays. The Company sells its panels primarily to original equipment manufacturing service providers or brand customers. The Company groups its business into three marketing channels: Information Technology Displays, Consumer Products Displays and Television Displays. In March 2008 and June 2008, the Company acquired 45% and 26% of equity interests in Verticil Electronic Corp. and Dazzo Technology Corporation, respectively. * * * As reported in the Troubled Company Reporter-Asia Pacific on Dec. 14, 2009, Fitch Ratings upgraded AU Optronics Corporation's Long-term foreign and local currency Issuer Default Ratings to 'BB-' from 'B+', and its National Long-term rating to 'BBB(twn)' from 'BBB-(twn)'. The Outlook is revised to Stable from Negative. HANNSTAR DISPLAY: Obtains 4-Year NT$8 Billion Syndicated Loan ------------------------------------------------------------- HannStar Display Corp. obtained a NT$8-billion, four-year loan from a group of 20 banks, including the state-run Bank of Taiwan, to repay loans and strengthen working capital, the China Post reports. The company has the right to extend the loan for an additional year, the report says. As reported in the Troubled Company Reporter-Asia Pacific on February 3, 2010, The Taipei Times said HannStar Display sank into the red in the fourth quarter due partly to antitrust lawsuit costs. Taipei Times said the company posted loss of NT$4.3 billion in the fourth quarter of 2009, an improvement from a loss of NT$8.2 billion in the same period in 2008. The company wrote off litigation costs of NT$1.6 billion for the price-fixing probes, including one initiated by the US Department of Justice, the report noted. About Hannstar Display Based in Taipei, Taiwan, Hannstar Display Corp. (TPE:6116) -- http://www.hannstar.com-- is principally engaged in the research, development, design, manufacture, sale and maintenance of thin film transistor liquid crystal display (TFT-LCD) products. The Company's principal product portfolio consists of TFT-LCDs for notebook personal computers (PCs), monitors, LCD televisions, automobile navigation systems, open access (OA) products, audiovisual (AV) products, Internet access (IA) products, netbooks, digital photo frames, language learning machines, smart mobile phones, portable media players (PMPs), personal navigation systems, portable digital video disc (DVD) players, automobile screens, industrial screens and others. ********* 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 T. Fernandez, 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 ***