/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100518.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 Tuesday, May 18, 2010, Vol. 13, No. 096 Headlines A U S T R A L I A ABC LEARNING: Administrators Set to Reconvene Creditors' Meeting H O N G K O N G CHEUNG WHO: Creditors' Proofs of Debt Due June 15 DRAGON KING: Creditors' Proofs of Debt Due June 15 EXPERT WHEEL: Creditors' Proofs of Debt Due June 14 FRANSISCO COMPANY: Ying and Chan Step Down as Liquidators FXMARKETSPACE ASIA: Ying and Chan Step Down as Liquidators HOI PO: Members and Creditors' Meetings Set for June 18 JAPAN HI-TECH: Members' Final Meeting Set for June 21 KENDRO LABORATORY: Lai and Haughey Step Down as Liquidators KRISPY KREME: Final Meetings Slated for June 22 LUEN FUNG: Lau Yip Leung Steps Down as Liquidator I N D I A AUTO FORGINGS: CRISIL Assigns 'B+' Rating on INR9.9MM Term Loan KINGFISHER AIRLINES: IDBI Bank Seeks Repayment on INR900cr Loan MADRAS FERTILIZERS: Fitch Assigns National Long-Term Rating of D MALANKARA ORTHODOX: CRISIL Rates INR322.9 Million Term Loan at 'B' MAA DURGA: CRISIL Rates INR121.7 Million Cash Credit at 'BB' MAKTEL SYSTEMS: CRISIL Reaffirms 'BB' Rating on INR8.5M Term Loan NILESH STEEL: CRISIL Assigns 'B+' Rating on INR65MM Cash Credit SOHUM SHOPPE: CRISIL Rates INR77.5 Million Cash Credit at 'BB' SAMRUDDHI INDUSTRIES: CRISIL Puts 'BB-' Rating on INR73M Term Loan TATA MOTORS: Aborts Planned $150-Mln Eco-Car Project in Thailand TATA MOTORS: Global Sales Up 53% in April 2010 TATA MOTORS: Head of Passenger Car Business Unit Resigns J A P A N JAPAN AIRLINES: Delays Early Retirement Program For Some Employees JAPAN AIRLINES: Faces Price-Fixing Charges From Aussie Regulator SOFTBANK CORP: Suspends Order-Taking For Apple's iPad K O R E A HYNIX SEMICONDUCTOR: Major Global Banks Backed Out From Bond Deals HYUNDAI GROUP: To Ink Financial Restructuring Plan With Creditors M A L A Y S I A DXN HOLDINGS: Reaches Settlement with Zapali Enterprise GULA PERAK: Classified as Affected Listed Issuer Under PN17 LIMAHSOON BERHAD: Appoints Alliance Investment as Adviser TALAM CORPORATION: Asks Bourse to Uplift Firm From PN17 Status N E W Z E A L A N D AIR NEW ZEALAND: Faces Price Fixing Charges From ACCC DORCHESTER PACIFIC: Capital Reconstruction Plan Finalized MERCER GROUP: Breaches Bank Covenant; Mulls Refinancing Options S I N G A P O R E OLYMPIC SHIPPING: Members' Final Meeting Set for June 17 X X X X X X X X * S&P Puts Ratings on 4 CDO Tranches on CreditWatch Positive * BOND PRICING: For the Week May 10 to May 14, 2010 - - - - - ================= A U S T R A L I A ================= ABC LEARNING: Administrators Set to Reconvene Creditors' Meeting ---------------------------------------------------------------- The Sydney Morning Herald reports that a proper account of ABC Learning Centre's financial state just before its collapse in November 2008 will finally be made available next week as the administrators prepare to reconvene a creditors' meeting and place the company into liquidation. According to the Herald, Greg Moloney, of Ferrier Hodgson, said his report to creditors would be available on May 24, with the meeting to be held in Brisbane on June 2. A vote to put ABC into liquidation will end the longest administration in Australian corporate history, the report says. About ABC Learning Based in Australia, ABC Learning Centers Limited (ASX: ABS) -- http://www.childcare.com.au/-- provides childcare services and education in more than 1,200 centers in Australia, New Zealand, the United States and the United Kingdom. The Company's subsidiaries include A.B.C. Developmental Learning Centers Pty Ltd., A.B.C. Early Childhood Training College Pty Ltd., Premier Early Learning Centers Pty Ltd., A.B.C. Developmental Learning Centers (NZ) Ltd., A.B.C. New Ideas Pty Ltd., A.B.C. Land Holdings (NZ) Limited and Child Care Centers Australia Ltd. On January 26, 2007, it acquired La Petite Holdings Inc. On February 2, 2007, it acquired Forward Steps Holdings Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In September 2007, the Company purchased the Nursery division (Leapfrog Nurseries) from Nord Anglia Education PLC. In June 2008, the Company completed the sale of a 60% stake in its United States business to Morgan Stanley Private Equity. * * * As reported in the Troubled Company Reporter-Asia Pacific on November 6, 2008, ABC Learning Centers Limited appointed Peter Walker and Greg Moloney of Ferrier Hodgson as voluntary administrators of the company and a number of its subsidiaries. Subsequent to the appointment of administrators, the company's banking syndicate appointed Chris Honey, Murray Smith and John Cronin of McGrathNicol as receivers. ================ H O N G K O N G ================ CHEUNG WHO: Creditors' Proofs of Debt Due June 15 ------------------------------------------------- Cheung Who Technologies (Hong Kong) Company Limited, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by June 15, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 5, 2010. The company's liquidator is: Wong Yun Wah Room 2510, 25/F, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong DRAGON KING: Creditors' Proofs of Debt Due June 15 -------------------------------------------------- Dragon King Development Limited, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by June 15, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 4, 2010. The company's liquidator is: Sun Fung Allan Ho Room 2702-3, CC Wu Building 302-8 Hennessy Road Wanchai, Hong Kong EXPERT WHEEL: Creditors' Proofs of Debt Due June 14 --------------------------------------------------- Creditors of Expert Wheel Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by June 14, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 6, 2010. The company's liquidator is: Sung Mi Yin Suite No. A, 11th Floor Ritz Plaza, 122 Austin Road Tsimshatsui, Kowloon FRANSISCO COMPANY: Ying and Chan Step Down as Liquidators --------------------------------------------------------- Ying Hing Chiu and Chan Mi Har stepped down as liquidators of Fransisco Company Limited on May 10, 2010. FXMARKETSPACE ASIA: Ying and Chan Step Down as Liquidators ---------------------------------------------------------- Ying Hing Chiu and Chan Mi Har stepped down as liquidators of Fxmarketspace Asia Limited on May 11, 2010. HOI PO: Members and Creditors' Meetings Set for June 18 ------------------------------------------------------- Members and creditors of Hoi Po Metal Manufactory Company Limited will hold their meetings on June 18, 2010, at 2:00 p.m., and 2:30 p.m., respectively at Room 32B2, 32nd Floor, One Pacific Place, 88 Queensway, in Hong Kong. At the meeting, Lai Kar Yan (Derek) and Yeung Lui Ming (Edmund), the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. JAPAN HI-TECH: Members' Final Meeting Set for June 21 ----------------------------------------------------- Members of Japan Hi-Tech. Company Limited will hold their final general meeting on June 21, 2010, at 11:00 a.m., at Suite 504, South Tower, World Finance Centre, Harbour City, 17-19 Canton Road, Tsimshatsui, Kowloon, in Hong Kong. At the meeting, Lam Tak Keung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KENDRO LABORATORY: Lai and Haughey Step Down as Liquidators ----------------------------------------------------------- Lai Kar Yan (Derek) and Darach E. Haughey stepped down as liquidators of Kendro Laboratory Products (H.K.) Limited on May 5, 2010. KRISPY KREME: Final Meetings Slated for June 22 ----------------------------------------------- Contributories and creditors of Krispy Kreme Hong Kong Limited will hold their final meetings on June 22, 2010, at 11:00 a.m., and 11:30 a.m., respectively at 602 The Chinese Bank Building, 61- 65 Des Voeux Road, Central, in Hong Kong At the meeting, Wong Teck Meng, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. LUEN FUNG: Lau Yip Leung Steps Down as Liquidator ------------------------------------------------- Lau Yip Leung stepped down as liquidator of Luen Fung Electric Wire and Cable Company Limited on April 27, 2010. ========= I N D I A ========= AUTO FORGINGS: CRISIL Assigns 'B+' Rating on INR9.9MM Term Loan --------------------------------------------------------------- CRISIL has assigned its 'B+/Stable' rating to the bank facilities of Auto Forgings. Facilities Ratings ---------- ------- INR42.5 Million Cash Credit Limit B+/Stable (Assigned) INR9.9 Million Term Loan B+/Stable (Assigned) The rating reflects AF's constrained financial risk profile, marked by weak debt protection measures, moderate gearing, and low net worth, small scale of operations, stagnant revenue growth over the past five years, and exposure to risks related to cyclicality and slowdown in the commercial vehicle segment. These rating weaknesses are partially offset by the benefits that AF derives from its promoters' experience in the forged auto components market. Outlook: Stable CRISIL believe that AF will continue to benefit over the medium term from its established customer base. However, AF's financial risk profile is expected to remain constrained over the medium term because of its working-capital-intensive operations and low cash accruals. The outlook may be revised to 'Positive' if the firm's financial risk profile improves because of higher-than- expected cash accruals or capital infusion by partners. Conversely, the outlook may be revised to 'Negative' if the firm's financial risk profile deteriorates because of lower-than-expected profitability. About Auto Forgings Set up in 1991 as a partnership firm by Mr. Vinod Kumar Gupta, AF manufactures forged automotive components. The firm's customers include auto ancillaries across the country. AF's plant in Ludhiana (Punjab) is equipped with five hammers, with capacity to forge 600 tonnes per month, and manufactures components of weights ranging from 200 grams to 20 kilograms. AF reported a profit after tax (PAT) of INR0.96 million on net sales of INR162 million for 2008-09 (refers to financial year, April 1 to March 31) against a PAT of INR2.52 million on net sales of INR158 million for 2007-08. KINGFISHER AIRLINES: IDBI Bank Seeks Repayment on INR900cr Loan --------------------------------------------------------------- IDBI Bank has asked Kingfisher Airlines to repay a total of INR900 crore loan after the company failed to stick to its repayment schedule, The Economic Times reports. According to the report, the bank has sent a notice to the airline asking it to pay a INR150-crore short-term loan on which the Vijay Mallya-owned company has missed some payments and a INR750-crore loan which will mature after some years, by the middle of this week. The Economic Times relates the bank said that it might invoke guarantees issued by holding company United Breweries Holding and by Vijay Mallya himself. Mr. Mallya however denied that IDBI was calling back the loan, the report notes. "The loan was given by a consortium led by SBI. So far, there is no problem. The information that IDBI is recalling the loan is incorrect," the report quoted Mr. Mallya as saying. Kingfisher Airlines has borrowed around INR3,000 crore from several banks, such as State Bank of India, Punjab National Bank, Bank of India, ICICI Bank and Axis Bank and has appointed SBI Capital Markets, an investment banking arm of SBI, to restructure these loans, according to the Economic Times. 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. MADRAS FERTILIZERS: Fitch Assigns National Long-Term Rating of D ---------------------------------------------------------------- Fitch Ratings has assigned India's Madras Fertilizers Limited a National Long-term rating of 'D(ind)'. The agency has also assigned ratings to the following bank loans: --Fund-based working capital limits of INR1914 million at 'D(ind)'/'F5(ind)'; and --Non-fund-based limits of INR300 million at 'D(ind)'/'F5(ind)' The ratings reflect the current default status in the repayment of MFL's debt obligations. The company has high levels of accumulated losses leading to negative net worth. The company was registered with the Board for Industrial and Financial Restructuring (BIFR) under the Sick Industrial Companies Act (SICA) in 2007, and was declared 'sick' in April 2009. State Bank of India is the operating agency working on the Debt Rehabilitation Scheme. Approval of the Debt Rehabilitation Scheme, the roadmap for its implementation, and MFL's return to normal operations and profitability would act as positive triggers to the ratings. Madras Fertilizers Limited is a Chennai-based Public Sector Enterprise (PSE) engaged in the manufacture of Urea and NPK fertilizers, with manufacturing facilities in Chennai. The government of India holds about 59.5 % of the company. For the first nine months of FY10, MFL reported revenues of INR8,678.2 million, operating EBITDA of INR523.9 million and a net loss of INR515.4 million. MALANKARA ORTHODOX: CRISIL Rates INR322.9 Million Term Loan at 'B' ------------------------------------------------------------------ CRISIL has assigned its 'B/Stable/P4' ratings to Malankara Orthodox Syrian Church Medical Mission's bank facilities. Facilities Ratings ---------- ------- INR50.0 Million Cash Credit B/Stable (Assigned) INR322.9 Million Term Loan B/Stable (Assigned) INR7.5 Million Letter of Credit P4 (Assigned) The ratings reflect MOSCMM's weak financial risk profile, marked by low profitability, and exposure to risks related to geographical concentration in revenue profile and regulatory nature of education segment. These rating weaknesses are partially offset by MOSCMM's established market position in the healthcare business in Kolenchery (Kerala). Outlook: Stable CRISIL believes that MOSCMM will maintain its business risk profile on the back of its long-standing presence and reputation. The outlook may be revised to 'Positive' in case of significant improvement in MOSCMM's capital structure and profitability resulting in higher cash accruals. Conversely, the outlook may be revised to 'Negative' if the society contracts large debt, or faces unfavorable changes in regulations or the legal framework. About the Society MOSCMM is a charitable society registered under the Travancore Cochin Literary Scientific and Charitable Societies Registration Act, 1955. The society was registered in 1968 and operations were started in with a 100-bed hospital in 1970 with a non-profit motive. The society also established a medical institute in 2004 offering MBBS course with an annual sanctioned intake of 100 students. MOSCMM reported a net loss of INR4.8 million on net sales of INR449 million for 2008-09 (refers to financial year, April 1 to March 31) against a net loss of INR5 million on net sales of INR353 million for 2007-08. MAA DURGA: CRISIL Rates INR121.7 Million Cash Credit at 'BB' ------------------------------------------------------------ CRISIL has assigned its 'BB/Stable' rating to Maa Durga Flour Mills Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR121.7 Million Cash Credit BB/Stable (Assigned) *Includes proposed amount of INR6.7 million The rating reflects Maa Durga's below-average financial risk profile marked by small net worth and weak debt protection metrics, and exposure to risks related to fluctuations in raw material prices, and limited pricing power. These rating weaknesses are partially offset by the benefits that Maa Durga derives from its promoters' experience in the agricultural commodities industry, and established relationships with suppliers and traders. Outlook: Stable CRISIL believes that Maa Durga's financial risk profile will remain strained over the medium term, as a result of its weak debt protection metrics. The outlook may be revised to 'Positive' if Maa Durga's net worth improves backed by significant improvement in profitability and further infusion of equity. Conversely, the outlook may be revised to 'Negative' if Maa Durga undertakes any large debt-funded capital expenditure, or if its profitability declines sharply. About Maa Durga Maa Durga was set up as a closely held company in 1999 by Mr. Prasanta Chandra Rath and is engaged in the production of wheat, atta, maida and suji with their manufacturing facilities near Cuttack, Orissa. The installed capacity of the company is around 50,000 quintals per month. Procurement of wheat is from traders in Bihar and Uttar Pradesh. Sales of the company are mainly to traders and bakeries in Orissa. Maa Durga reported a profit after tax (PAT) of INR2.7 million on net sales of INR671 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR0.07 million on net sales of INR576 million for 2008-09. MAKTEL SYSTEMS: CRISIL Reaffirms 'BB' Rating on INR8.5M Term Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Maktel Systems (Maktel) continue to reflect the susceptibility of Maktel's operating margin to volatility in raw material prices, customer concentration in its revenue profile, and its small scale of operation and small net worth. These weaknesses are partially offset by Maktel's moderate gearing and debt protection metrics, and established position in the electrical equipment industry. Facilities Ratings ---------- ------- INR40.0 Million Cash Credit Limit BB/Stable (Reaffirmed) INR8.5 Million Term Loan BB/Stable (Reaffirmed) INR30.0 Million Letter of Credit P4+ (Reaffirmed) INR65.0 Million Bank Guarantee P4+ (Reaffirmed) Outlook: Stable CRISIL believes that Maktel will maintain its financial and business risk profiles over the medium term, backed by its sizeable order book, reputed customer portfolio, and stable cash accruals. The outlook maybe revised to 'Positive' if Maktel increases its scale of operations, leading to significant improvement in its net worth and capital structure. Conversely, the outlook may be revised to 'Negative' if the company undertakes an aggressive, debt-funded capital expenditure program, or reports lower-than-expected profitability, leading to deterioration in its financial risk profile. About Maktel Established in 1982, Maktel was a partnership between Mr. N M Patel and Mr. A K Nandi. In April 2009, it was reconstituted as a private limited company. The company is engaged in the manufacture of electrical equipment such as control and relay panel transformers, low-tension distribution boxes, and medium-voltage switchgear used in transmission and distribution of power. The company's plant, situated in Vadodara (Gujarat), has a capacity to manufacture 1320 control and relay panels per annum on a single shift basis, and 144,000 kilovolt amperes (kVA) of switch board and distribution boxes per annum. It has the flexibility to increase the production of control and relay panels by increasing the number of shifts. About 40 per cent of the company's revenue is contributed by control and relay panels, and 30 per cent each by distribution boxes and switchgears. For 2008-09 (refers to financial year, April 1 to March 31), Maktel reported a profit after tax of INR3.8 million on net sales of INR247.6 million, against a INR7.7 million and INR268.5 million, respectively, for 2007-08. NILESH STEEL: CRISIL Assigns 'B+' Rating on INR65MM Cash Credit --------------------------------------------------------------- CRISIL has assigned its 'B+/Stable/P4' ratings to the bank facilities of Nilesh Steel & Alloys Pvt Ltd, part of the Nilesh Steel group. Facilities Ratings ---------- ------- INR65.0 Million Cash Credit B+/Stable (Assigned) INR185.0 Million Proposed LT B+/Stable (Assigned) Bank Loan Facility INR15.0 Million Bank Guarantee P4 (Assigned) The ratings reflect the group's average financial risk profile, and its exposure to risks related to volatility in steel prices. These rating weaknesses are partially offset by the benefits that the group derives from its promoters' experience in the steel industry. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Nilesh Steel, and Dhanlaxmi Re-Rolling Mill (Dhanlaxmi); this is because these firms, together referred to as the Nilesh Steel group (NSG), have common promoters, significant operational linkages and financial fungibility. Outlook: Stable CRISIL believes that the NSG will continue to benefit over the medium term from its promoters' industry experience, and established relationships with customers. The outlook may be revised to 'Positive' if the group reports higher-than-expected growth in revenues, or significant and sustainable improvement in its operating margin, debt protection metrics, or operating cycle. Conversely, the outlook may be revised to 'Negative' in case of lower-than-expected increase in revenues, or steep deterioration in debt protection metrics or operating cycle. About Nilesh Steel Incorporated in 2002 by Mr. Sanjay Mantri and Mr. Nilesh Chechani, Nilesh Steel manufactures mild-steel ingots. The company has its manufacturing facility, in Jalna (Maharashtra), with an installed capacity of 36,000 tonnes per annum (tpa). Dhanlaxmi, a proprietorship concern of Mr. Sanjay Mantri, is engaged in the manufacture of thermo-mechanically treated bars; the firm has a manufacturing facility with an installed capacity of 75,000 tpa. Nilesh Steel reported a profit after tax (PAT) of INR1.1 million on net sales of INR707.7 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR10.8 million on net sales of INR491.2 million for 2007-08. SOHUM SHOPPE: CRISIL Rates INR77.5 Million Cash Credit at 'BB' -------------------------------------------------------------- CRISIL has assigned its 'BB/Stable' rating to Sohum Shoppe Ltd's bank facilities. Facilities Ratings ---------- ------- INR77.5 Million Cash Credit* BB/Stable (Assigned) *includes a sublimit for Bank Guarantee to the extent of INR1.1 Million The rating reflects Sohum's small scale of operations, low net worth and large working capital requirements marked by high inventory levels. These rating weaknesses are partially offset by the company's satisfactory financial risk profile, marked by low gearing and healthy debt protection indicators, and the benefits that the company derives from robust growth potential of the organized retail industry. Outlook: Stable CRISIL believes that Sohum will maintain a stable financial risk profile over the medium term, backed by low gearing and strong debt protection indicators. The outlook may be revised to 'Positive' if Sohum's financial risk profile improves significantly led by equity infusion, or in case of more-than- expected increase in the company's revenue and profitability. Conversely, the outlook may be revised to 'Negative' if Sohum's financial risk profile deteriorates, if its profitability declines significantly, or if it undertakes large, debt-funded capital expenditure programs. About Sohum Shoppe Incorporated as a closely held company in 2000 by Mr. Manohar Jalan and Mr. Bajrang Lohia, Sohum is engaged in the retail business of various brands of accessories, toys, and ready-made garments for men, women, and children. The company has three retail multi-brand outlets in Guwahati and one in Dibrugarh (both in Assam). Sohum reported a profit after tax (PAT) of INR2.59 million on net sales of INR239.30 million for 2008-09 (refers to financial year, April 1 to March 31) against a PAT of INR2.55 million on net sales of INR213.20 million for 2007-08. SAMRUDDHI INDUSTRIES: CRISIL Puts 'BB-' Rating on INR73M Term Loan ------------------------------------------------------------------ CRISIL has assigned its 'BB-/Stable/P4+' ratings to Samruddhi Industries Ltd's bank facilities. Facilities Ratings ---------- ------- INR120.0 Million Cash Credit BB-/Stable (Assigned) INR73.0 Million Term Loan BB-/Stable (Assigned) INR4.0 Million Letter of Credit P4+ (Assigned) The ratings reflect SIL's average financial risk profile, constrained by weak liquidity and large working capital requirements, and exposure to risks related to fluctuations in raw material prices, small scale of operations, and intense competition in the moulded plastic products industry. These rating weaknesses are partially offset by SIL's comfortable market position in the plastic containers industry, and the benefits that the company derives from the extensive experience of its promoters in the industry. Outlook: Stable CRISIL believes that SIL will continue to benefit from its comfortable position in the plastic containers industry; SIL's scale of operations will, however, remain small and its liquidity weak over the medium term. The outlook may be revised to 'Positive' in case of improvement in its liquidity profile driven by higher than expected cash accruals or fresh equity infusion. Conversely, the outlook may be revised to 'Negative' in case of further pressure on liquidity because of lower than expected cash accruals or large incremental working capital requirements. About Samruddhi Industries Incorporated in 1993 by Mr. Ramakant Malu, SIL (formerly, Malsons Organics Ltd) is a closely held public limited company that manufactures and markets moulded plastic consumer products. Initially, the company manufactured crates for the dairy industry at Sangli (Maharashtra) on a tender basis. In 2006 the company commissioned another manufacturing facility at Rudrapur in Uttarakhand. The product range of the company now includes tubs, kettles, fruit-crates, buckets, dustbins, furniture, step ladders, horticulture pots, mugs, and glasses. The name of the company was changed to SIL in 2004. SIL reported a profit after tax (PAT) of INR27.7 million on net sales of INR582.2 million for 2008-09 (refers to financial year, April 1 to March 31) against a PAT of INR23.7 million on net sales of INR580.5 million for 2007-08. TATA MOTORS: Aborts Planned $150-Mln Eco-Car Project in Thailand ---------------------------------------------------------------- The Times of India reports that Tata Motors has aborted its $150-million eco-car project in Thailand. People familiar with Tatas' plans said the company could instead launch the Nano, the world's smallest and cheapest car, in Thailand next year, the report notes. According to the report, Tata Motors officials said the company has alternative plans for the Thai market, but remained tight- lipped about the reasons for the pullout. The Times of India relates Tata Motors spokesperson Debasis Ray confirmed the decision to drop out of the project 18 months after the company's Thailand offshoot received an investment promotion certificate from the country's Board of Investment. Mr. Ray, according to the report, did not comment on the Nano's launch in Thailand, but said the company will introduce a "highly fuel-efficient and environmentally-friendly car with appropriate investments for local production in Thailand." 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 April 21, 2010, Moody's Investors Service upgraded Tata Motors Ltd's corporate family rating to B2 from B3. The outlook on the rating is positive. This rating action completes the rating review for possible upgrade initiated on March 2, 2010, when TML announced its consolidated Q3 FY2010 results. TATA MOTORS: Global Sales Up 53% in April 2010 ---------------------------------------------- Tata Motors Ltd said its global sales in April 2010 increases 53% from April 2009 to 77,732 units. The sales comprises of Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, Tata passenger vehicles along with distributed brands in India, and Jaguar and Land Rover. Sales of all commercial vehicles were 34,470 nos. in April 2010, a growth of 40%. Sales of all passenger vehicles were 43,262 nos. in April 2010, a growth of 66%. Tata passenger vehicle sales, including those distributed, were 25,353 nos. for the month, a growth of 71%. Jaguar Land Rover global sales in April 2010 were 17,909 vehicles, higher by 61%. Jaguar sales for the month were 3,559 nos., almost the same as last year inspite of the withdrawal of X-Type. The Jaguar XF sales were up by 23%, while Land Rover sales were 14,350 nos., higher by 89%. 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 April 21, 2010, Moody's Investors Service upgraded Tata Motors Ltd's corporate family rating to B2 from B3. The outlook on the rating is positive. This rating action completes the rating review for possible upgrade initiated on March 2, 2010, when TML announced its consolidated Q3 FY2010 results. TATA MOTORS: Head of Passenger Car Business Unit Resigns -------------------------------------------------------- Tata Motors Ltd. said Monday that Rajiv Dube, president of the Passenger Car Business Unit, has decided to resign from the Company to pursue other interests outside the Tata Group. With immediate effect, Mr. S. Krishnan, Senior Vice President (Commercial), responsible for sales, marketing and customer support functions of the business, will also take charge of the Premier Car Division in addition to his current responsibilities. Girish Wagh, head of Small Car Project, will take on the additional responsibility of the passenger car business' manufacturing operations and product development activities. Mr. Dube, who joined the Tata Group in 1983, began his career in the manufacturing operations of Tata Motors at Jamshedpur. He joined the Tata Administrative Services in 1990 and was assigned to Tata Industries in 1991. He was reassigned to Tata Motors in 1998, when the passenger car division was formed. 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 April 21, 2010, Moody's Investors Service upgraded Tata Motors Ltd's corporate family rating to B2 from B3. The outlook on the rating is positive. This rating action completes the rating review for possible upgrade initiated on March 2, 2010, when TML announced its consolidated Q3 FY2010 results. ========= J A P A N ========= JAPAN AIRLINES: Delays Early Retirement Program For Some Employees ------------------------------------------------------------------ Japan Today reports that sources close to the matter said Japan Airlines Corp. has decided to delay part of its early retirement program amid fears that the larger number of applicants than expected could adversely affect its operations in the busy summer season. Source said although employees who have applied were scheduled to retire by the end of May, the retirement of some of them including pilots and cabin attendants will be put off until after the summer, Japan Today relates. JAL solicited 2,700 applications for the program in March and received applications from some 3,610 employees including about 160 pilots and around 1,370 cabin attendants. 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: Faces Price-Fixing Charges From Aussie Regulator ---------------------------------------------------------------- The Australian Competition and Consumer Commission said it instituted proceedings in the Federal Court on May 17 against Japan Airlines International Co., Ltd. Japan Airlines International Co., Ltd. is the 14th airline to be the subject of ACCC proceedings for alleged price fixing in the air cargo industry. The ACCC alleges that between 2002 and 2006, Japan Airlines International Co., Ltd. entered into arrangements or understandings with other international air cargo carriers that had the purpose or effect of fixing the price of a fuel surcharge and a security surcharge that were applied to air cargo carried by them and other airlines. The competition watchdog alleges that arrangements or understandings were reached in Singapore, Hong Kong and Japan for fuel surcharges applied to cargo originating in those countries. The ACCC also alleges arrangements or understandings were reached in Singapore and Hong Kong for a security surcharge applied to cargo originating in those countries. The ACCC is seeking declarations, injunctive relief, pecuniary penalties, and costs. A directions hearing has been set down for June 10, 2010, before Justice Jacobson in the Federal Court, Sydney. Proceedings have also been instituted against Singapore Airlines Cargo Pte Ltd, Cathay Pacific Airways Ltd, Emirates, PT Garuda Indonesia Ltd, Thai Airways International Public Company Limited, Korean Air Lines Co. Ltd, Malaysian Airline System Berhad and its wholly-owned cargo subsidiary Malaysia Airlines Cargo Sdn Bhd and Air New Zealand Limited. 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) SOFTBANK CORP: Suspends Order-Taking For Apple's iPad ----------------------------------------------------- Softbank Mobile Corp., a mobile phone service unit of Softbank Corp., has stopped taking orders for Apple Inc.'s iPad tablet computer due to a worldwide supply shortage, The Japan Times reports. According to the report, the suspension came just two days after the Softbank Mobile started taking orders ahead of the iPad launch in Japan on May 28 under a partnership with the U.S. computer maker. The Japan Times says Softbank Mobile was chosen as Apple's partner for the iPad sales in Japan as it has been serving as the exclusive provider of Apple's iPhone in Japan. It is not known whether Softbank Mobile will resume taking orders, the report notes. Apple said it has sold more than 1 million iPad units in the United States since its debut in April. The iPad will also be available on May 28 in eight other countries, including Australia, Germany and Italy. Softbank Corp. (TYO:9984) -- http://www.softbank.co.jp/-- is a Japan-based company that provides digital information services. The Company has six business segments. The Mobile Communication segment provides cellular phone services and sells attached cellular phone terminals. The Broadband and Infrastructure segment provides high-speed Internet access services, Internet protocol (IP) phone service, and contents. The Fixed Communication segment provides transmission services for audio and data, as well as exclusive line and data center services. The Internet Culture segment is engaged in the Internet advertising, broadband portal and auction businesses. The Electronic Commerce (E-Commerce) segment sells personal computers (PCs), peripheral devices and software for PC use, as well as provides business-to- business and business-to-customer e-commerce services. The Others segment is involved in the broadcasting media, technology service, media marketing and overseas fund businesses. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 26, 2010, 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. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Major Global Banks Backed Out From Bond Deals ------------------------------------------------------------------ Yonhap News Agency, citing a report by Hong Kong-based FinanceAsia, says that some global banks have withdrawn their plans to participate in deals to sell convertible bonds issued by Hynix Semiconductor Inc. As reported in the Troubled Company Reporter-Asia Pacific on May 7, 2010, Hynix Semiconductor plans to sell KRW557.9 billion (US$500 million) worth of convertible bonds in Europe and other overseas markets sometime this year. The five-year bond sale is aimed at securing operational fees and expanding its production capacity. Yonhap relates FinanceAsia said financial giants such as Goldman Sachs, J.P. Morgan and the Bank of America Merrill Lynch, however, backed away from working on deals for Hynix as bookrunners. FinanceAsia said Goldman Sachs, the final bank to drop out, decided to call it quits "supposedly because it didn't feel comfortable with either the size or the price, or indeed the two in combination," according to Yonhap. "While most other issuers are staying on the sidelines, pondering the continuing volatility in global equity markets, Hynix Semiconductor pushed through a $500 million convertible bond late on Tuesday [May 12]," FinanceAsia said. The participating bookrunners are Credit Suisse and the Royal Bank of Scotland in addition to the South Korean banks, including Korea Development Bank, Korea Exchange Bank and Woori Investment & Securities Co. About Hynix Semiconductor Hynix Semiconductor Inc. -- http://www.hynix.com/-- is an Icheon, South Korea-based memory semiconductor supplier offering Dynamic Random Access Memory chips and Flash memory chips to a wide range of established international customers. The Company's shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. * * * As reported in the Troubled Company Reporter-Asia Pacific on Jan. 27, 2010, Moody's Investors Service changed to stable from negative the outlook for Hynix Semiconductor Inc's B1 corporate family and senior unsecured bond ratings. The rating action has been prompted by the sharp rebound in the company's operating performance and improved liquidity profile. Standard & Poor's Ratings Services, on Nov. 17, 2009, revised to stable from negative the outlook on its long-term corporate credit rating on Hynix Semiconductor Inc. following the recovery of the DRAM market and the company's profitability. At the same time, Standard & Poor's affirmed its 'B+' long-term corporate and 'B' senior unsecured debt ratings on Hynix. HYUNDAI GROUP: To Ink Financial Restructuring Plan With Creditors ----------------------------------------------------------------- Bloomberg News, citing Yonhap News Agency, reports that the Hyundai Group will be asked by creditors to show its commitments to improving its finances. The Korean-language news provider said Hyundai and its creditors will sign an agreement on a financial plan by May 31, according to Bloomberg News. The Chosun Ilbo reports that Hyundai Group is likely to sign a memorandum of understanding with creditors to improve its financial structure. The group is struggling as its North Korea tourism projects are on ice and its main subsidiary Hyundai Merchant Marine is performing badly, Chosun Ilbo says. Chosun Ilbo discloses that such MOUs, signed between large companies at risk of insolvency and creditors are written promises of intense restructuring and contain a timeline to pay off debts. About Hyundai Group Hyundai, once South Korea's largest conglomerate, has shrunk to become a minor player since the Asian financial crisis of 1997 prompted the spin-off of key auto and shipbuilding units. It now has five firms -- Hyundai Elevator, Hyundai Merchant Marine, Hyundai Logistics, Hyundai Securities and Hyundai Asan, which is engaged in inter-Korean projects in North Korea. =============== M A L A Y S I A =============== DXN HOLDINGS: Reaches Settlement with Zapali Enterprise ------------------------------------------------------- DXN Holdings Bhd said that Zafali Enterprise has withdrawn its winding up petition against DXN Marketing Sdn. Bhd., a wholly owned subsidiary of DXN. The Company said that both parties on May 16, 2010, reached an amicable settlement whereby DMSB paid MYR180,000 to Zapali Enterprise as an agreed settlement. Zafali Enterprise has filed a winding up petition to the High Court of Malaya in Penang against DXN Marketing. Zafali Enterprise asserts a MYR200,000 claim together with interest at a rate of 8% per annum calculated from June 11, 2000, until date of full settlement, together with court cost of MYR7,312 pursuant to the Judgment obtained on December 3, 2009, in Alor Setar Sessions Court Summons No: 52-211-00. About DXN Holdings DXN Holdings Berhad is a Malaysia-based investment holding and provision of management services company. The Company operates in five business segments: multi-level marketing, which is engaged in the manufacture and sale of health supplements, and other products on a multi-level marketing basis; property development, which is engaged in housing developing and contracting; energy, which is engaged in the manufacture and sale of biodiesel, and other incidental products; investment holding, which is engaged in investment holding and provision of management services, and others, which is engaged in travel agency and tour operation, information technology consultancy and advisory wholesale and retail of stationeries, household items, gifts and accessories. On February 29, 2008, the Company's wholly owned subsidiary, DXN Land Sdn. Bhd. acquired Bio Synergy Engineering Sdn. Bhd. GULA PERAK: Classified as Affected Listed Issuer Under PN17 ----------------------------------------------------------- Gula Perak Berhad is now listed as an Amended Practice Note 17 company based on the criteria set by the Bursa Malaysia Securities Bhd. According to a disclosure statement with the bourse, Gula Perak triggered the PN17 listing as the Company was not able to provide a solvency declaration to Bursa Malaysia. As a listed Company under the Amended PN17 of the Bursa Securities, Gula Perak is required to submit a reform plan to regularize its financial condition. The plan will be submitted for approval to the Securities Commission and other relevant authorities. In the event the Company fails to comply with all the provisions of PN 17, Bursa Securities may commence delisting proceedings against the company. About Gula Perak Gula Perak Berhad is a Malaysia-based company. The Company is engaged in construction works, trading in construction materials and property development. The principal activities of the subsidiary companies consist of hotel operations and management, service apartment operations and management and property development. The Company operates in two segments: Hotel operations, which the Company owns and operates the Dynasty Hotel, Kuala Lumpur and Empress Hotel, Sepang, Selangor, and Construction and property development, which the Company is engaged in construction and development of industrial properties. Its subsidiaries include Dynawell Corporation (M) Sdn. Bhd., KSB Requirements & Rest Sdn. Bhd., Gula Perak Land Sdn. Bhd. and Dyna Enterprise International Ltd. LIMAHSOON BERHAD: Appoints Alliance Investment as Adviser --------------------------------------------------------- Limahsoon Berhad has appointed Alliance Investment Bank Berhad as adviser for its Proposed Regularization Plan. Limahsoon Berhad (KUL:LIMAHSN) -- http://www.limahsoon.com/-- is a Malaysia-based company engaged in investment holding and the provision of management services to its subsidiaries. The Company operates in two business segments: manufacturing of laminated board, which includes pressure treatment, kiln drying and the manufacture of laminated boards and mouldings, and sawmilling, which includes sawmilling of green rubberwood. Limahsoon Berhad has been classified a Practice Note No. 17 company based on the criteria set by the Bursa Malaysia Securities Bhd after as the Company defaulted in payment and is unable to provide a Solvency Declaration to Bursa Securities. TALAM CORPORATION: Asks Bourse to Uplift Firm From PN17 Status -------------------------------------------------------------- Talam Corporation Berhad has asked Bursa Malaysia Securities Berhad for its approval to uplift the Company from the PN17 status. Talam said the proposals under its Regularization Plan as approved by the Securities Commission on April 29, 2008, has been completed upon the listing and quotation of the RCPS, RCSLS-B, RCSLS-C and RCSLS-D on the Main Board of Bursa Malaysia Securities Berhad on July 1, 2009. Talam's proposed divestment program, which did not require the approval of the Securities Commission, is still on-going. Talam had entered into agreements with Menteri Besar Selangor Inc. through which a portion of the proceeds will be used to make partial settlement of the Term Loan Facilities granted by TA First Credit Sdn Bhd and Insas Credit & Leasing Sdn Bhd, respectively. Talam said its adviser, RHB Investment Bank Berhad, are still collating the necessary information/documents as requested by Bursa Securities and expects this to be done by early June 2010. About Talam Corp. Headquartered in Kuala Lumpur, Malaysia, Talam Corporation Berhad -- http://www.talam.com.my/-- is principally engaged in property development. Its other activities include trading building materials, manufacturing of ready mixed concrete, provision for higher educational programs, development and management of hotel, golf and country club horticulturists, agriculturists and landscaping designers and contractors and investment holding. Operations of the group are carried out in Malaysia and China. The Troubled Company Reporter-Asia Pacific reported on Sept. 11, 2006, that based on the Audited Financial Statements of Talam Corporation for the financial year ended Jan. 31, 2006, the auditors Ernst & Young were unable to express their opinion on the Company's Audited Accounts. As such, the company is an affected listed issuer of the Amended Practice Note 17 category. In accordance with PN 17, the company is required to submit and implement a plan to regularize its financial condition. ==================== N E W Z E A L A N D ==================== AIR NEW ZEALAND: Faces Price Fixing Charges From ACCC ----------------------------------------------------- The Australian Competition and Consumer Commission instituted proceedings in the Federal Court against Air New Zealand Ltd on May 17. Air New Zealand Ltd is the 15th airline to be the subject of ACCC proceedings for alleged price fixing in the air cargo industry. The ACCC alleges that between 2002 and 2006, Air New Zealand Ltd entered into arrangements or understandings with other international air cargo carriers that had the purpose or effect of fixing the price of a fuel surcharge and a security surcharge that were applied to air cargo carried by them and other airlines. The competition watchdog alleges that arrangements or understandings were reached in Singapore, Hong Kong and Japan for fuel surcharges applied to cargo originating in those countries. The ACCC also alleges arrangements or understandings were reached in Singapore and Hong Kong for a security surcharge applied to cargo originating in those countries. The ACCC is seeking declarations, injunctive relief, pecuniary penalties, and costs. A directions hearing has been set down for June 10, 2010, before Justice Jacobson in the Federal Court, Sydney. Proceedings have also been instituted against Singapore Airlines Cargo Pte Ltd, Cathay Pacific Airways Ltd, Emirates, PT Garuda Indonesia Ltd, Thai Airways International Public Company Limited, Korean Air Lines Co. Ltd, Malaysian Airline System Berhad and its wholly-owned cargo subsidiary Malaysia Airlines Cargo Sdn Bhd and Japan Airlines International Co., Ltd. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand Ltd. -- http://www.airnewzealand.com/--is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. Air New Zealand flies to the United States, United Kingdom, Canada, Europe and other Asian cities. * * * Air New Zealand Ltd. continues to carry Moody's Investors Service "Ba1" Senior Unsecured Issuer rating with stable outlook. DORCHESTER PACIFIC: Capital Reconstruction Plan Finalized --------------------------------------------------------- Dorchester Pacific Ltd said it is awaiting final confirmation from its trustee Perpetual Trust so that its capital reconstruction plan can be put to Debenture holders. If the plan is approved Dorchester Finance will be out of Moratorium by July 1. Dorchester Pacific said it has finalized its capital reconstruction plan. The company has been working closely with the Trustees and their independent advisors since March 10. The Plan and an Independent Report from PWC are now with the Trustees Perpetual Trust and the Public Trust. "Dorchester believes that the relevant documents should be able to be mailed out to investors around the May 26 and that an Investor Meeting should be able to take place on June 17, 2010," Dorchester said. "Whether that timetable can be met depends on how long it takes to get final confirmation from Perpetual Trust. A number of Investor Roadshows will be held around the country before the formal Meeting." The structure of the Plan is in line with earlier announcements, although one important requirement, repayment of 50 cents in the dollar to Debentureholders, has already been achieved. Dorchester said four securities will be issued to Debentureholders in exchange for their outstanding Debenture Stock: (a) Units in a Property Trust which will hold $33 million of hotel properties; (b) Interest Bearing Secured Notes ($20 million in total); (c) 36.5 million shares in Dorchester Pacific, the same number as currently on issue, and so representing 50% ownership prior to any further capital raising; and (d) Options to purchase Dorchester Pacific Shares in 3 years at a set price. The Plan is conditional on Dorchester Pacific raising a minimum of NZ$8 million new capital from a proposed rights issue of NZ$10 million (100 million shares at 10 cents per share). It is also conditional on shareholder approval and subordinated noteholder approval. "The delay in getting the proposal to this stage has been frustrating for everyone and we apologise to investors for the uncertainty that this may have created," Executive Director Paul Byrnes said. "But, if the Plan is approved and the capital raising successfully completed the Board believes that there is every possibility that Debenture Stockholders could ultimately receive 100 cents or more in the dollar of their original Debenture Stock," Mr. Byrnes added. About Dorchester Pacific Headquartered in Auckland, New Zealand, Dorchester Pacific Limited (NZE:DPC)-- http://www.dorchester.co.nz--is a financial solutions provider, offering complementary products and services across finance, insurance, savings and investments. The Finance division provides investment opportunities through secured debenture stock and subordinated unsecured notes, and financing solutions for the property, business, equipment, motor vehicle and personal finance sectors. Its insurance and savings division provides a range of savings, life insurance, reverse annuity mortgages, home equity release loans and other financial products and services. The Investment Service division includes equity investment advisers and sharebrokers, MoneyOnline and NZ Investor Magazine, which provide professional, independent investment advice, sharebroking and financial planning services. Dorchester Pacific holds a 25% shareholding in St. Laurence Limited, the holding company for a property-based investment and finance group of companies, which manages assets for over 16,000 investors. * * * Dorchester Pacific disclosed a proposal for an early end of the Deferred Repayment Plan approved by Debentureholders and Noteholders in December 2008. The proposal is recognition of the changed circumstances since the Deferred Repayment Plan was approved and of the need to achieve a settlement which would ensure the best outcome for investors under these changed circumstances. The proposal has been put to Trustees for their consideration prior to being sent to investors. The proposal includes a NZ$10 million capital raising to support a restructured Dorchester. "A restructuring and recapitalization proposal which will achieve full settlement with investors and take Dorchester out of Moratorium has been developed and presented to Trustees for their Consideration," Dorchester said December 18. Dorchester Pacific reported a net loss of NZ$25.4 million in the year to March 31, 2009, compared to a NZ$18.1 million loss in the previous year. Net revenue of NZ$24.6 million was significantly down on 2008 net revenue of NZ$64.4 million. MERCER GROUP: Breaches Bank Covenant; Mulls Refinancing Options --------------------------------------------------------------- Mercer Group said it is considering a number of refinancing options after breaching its banking covenant. The company said in a regulatory filing that it has been advised by its bank that it is in breach of its interest cover covenant. The covenant is that earnings are to be no less than 2.25 times the funding costs for the 6 month period ending December 31, 2009. The actual achieved ratio was 1.9 times. The bank has advised that it reserves its rights in respect of the breach. The Company said it subsequently drew down $1.5 million from Gresham Finance Limited as authorized by its shareholders at the Annual General Meeting held on November 24, 2009. The funds have been used to reduce bank debt as previously agreed. Principal payments to non bank lenders are on hold. Interest payments are being made in compliance with loan agreements. Established in 1882, Mercer Group designs, makes and distributes stainless steel products for the industrial, dairy, commercial, food processing, healthcare and residential buildings industries. The Mercer group of companies are subsidiaries of the New Zealand listed company Broadway Industries Limited (NZE:BWY). ================= S I N G A P O R E ================= OLYMPIC SHIPPING: Members' Final Meeting Set for June 17 -------------------------------------------------------- Members of Olympic Shipping Pte Ltd will hold their final meeting on June 17, 2010, at 10:30 a.m., at 8 Wilkie Road, #03-08, Wilkie Edge, Singapore 228095. At the meeting, Chee Yoh Chuang and Lim Lee Meng, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. =============== X X X X X X X X =============== * S&P Puts Ratings on 4 CDO Tranches on CreditWatch Positive ------------------------------------------------------------ Standard & Poor's Ratings Services placed the ratings on four Asia-Pacific (excluding Japan) collateralized debt obligation (CDO) tranches on CreditWatch with positive implications. At the same time, the rating on one collateralized loan obligation (CLO) tranche was placed on CreditWatch negative. "To assess the creditworthiness of each class, we reviewed the credit quality of the securitized assets using the synthetic rated overcollateralization (SROC) scores and results from supplemental 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 tranches that were placed on CreditWatch positive had SROC scores greater than 100% at the current rating level and at a higher rating level (based on the maximum of the scenario loss rate (SLR), largest obligor test, and largest industry test). SROC scores rising above 100% reflect an improvement in the credit quality of the underlying portfolio. The swap-risk rating on AsiaMea CLO Mezz CDS1 was placed on CreditWatch negative as its SROC fell below 100% as at the end of April 2010." Transaction Rating To Rating From Zenesis SPC Series 2005-3 A-/Watch Pos A- Zenesis SPC Series 2005-4 A-/Watch Pos A- Castle Finance I Ltd. Series 1 B-/Watch Pos B- Zenesis SPC Series 2006-1 BB+/Watch Pos BB+ AsiaMea CLO Mezz CDS 1 AA-srp/Watch Neg AA-srp * BOND PRICING: For the Week May 10 to May 14, 2010 --------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- ADVANCED ENERGY 9.50 01/04/2015 AUD 1.05 AINSWORTH GAME 8.00 12/31/2011 AUD 0.86 AMP GROUP FINANC 9.80 04/01/2019 NZD 0.95 ANTARES ENERGY 10.00 10/31/2013 AUD 2.01 AUROX RESOURCES 7.00 06/30/2010 AUD 0.95 BECTON PROP GR 9.50 06/30/2010 AUD 0.31 CBD ENERGY LTD 12.50 01/29/2011 AUD 0.15 CHINA CENTURY 12.00 09/30/2010 AUD 0.75 COM BK AUSTRALIA 5.00 10/15/2019 AUD 69.08 FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.41 GRIFFIN COAL MIN 9.50 12/01/2016 USD 65.00 HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.24 JPM AU ENF NOM 1 3.50 06/30/2010 USD 6.83 MINERALS CORP 10.50 09/30/2011 AUD 0.26 NEW S WALES TREA 1.00 09/02/2019 AUD 64.32 PRAECO P/L 7.13 07/28/2020 AUD 72.24 RESOLUTE MINING 12.00 12/31/2012 AUD 1.22 SUN RESOURCES NL 12.00 06/30/2011 AUD 0.45 HONG KONG --------- RESPARCS FUNDING 8.00 12/29/2049 USD 39.50 INDIA ----- AFTEK INFOSYS 1.00 06/25/2010 USD 70.00 GEMINI COMMUNICATION 6.00 07/18/2012 EUR 66.75 INDONESIA --------- TRUBA JAYA 11.75 07/08/2010 IDR 66.50 JAPAN ----- AIFUL CORP 1.20 01/26/2012 JPY 73.71 AIFUL CORP 1.99 03/23/2012 JPY 70.86 AIFUL CORP 1.22 04/20/2012 JPY 69.93 AIFUL CORP 1.63 11/22/2012 JPY 62.02 AIFUL CORP 1.74 05/28/2013 JPY 55.83 AIFUL CORP 1.99 10/19/2015 JPY 44.65 COVALENT MATERIALS 2.87 02/18/2013 JPY 73.57 JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 58.64 JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 58.45 JPN HOUSING FIN 1.40 03/19/2020 JPY 21.61 NIS GROUP 8.06 06/20/2012 USD 42.12 TAKEFUJI CORP 9.20 04/15/2011 USD 70.62 TAKEFUJI CORP 9.20 04/15/2011 USD 70.62 TAKEFUJI CORP 4.00 06/05/2022 JPY 52.72 MALAYSIA -------- ADVANCED SYNERY 2.00 01/26/2018 MYR 0.07 ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.11 CRESENDO CORP B 3.75 01/11/2016 MYR 1.02 DUTALAND BHD 6.00 04/11/2013 MYR 0.32 DUTALAND BHD 6.00 04/11/2013 MYR 0.32 EASTERN & ORIENT 8.00 07/25/2011 MYR 0.96 EASTERN & ORIENT 8.00 11/16/2019 MYR 0.95 KRETAM HOLDINGS 1.00 08/10/2010 MYR 1.25 KUMPULAN JETSON 5.00 11/27/2012 MYR 1.70 MITHRIL BHD 3.00 04/05/2012 MYR 0.67 NAM FATT CORP 2.00 06/24/2011 MYR 0.09 OLYMPIA INDUSTRI 2.80 04/11/2013 MYR 0.22 OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.51 OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.27 PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.63 REDTONE INTL 2.75 03/04/2020 MYR 0.07 RUBBEREX CORP 4.00 08/14/2012 MYR 1.25 SCOMI ENGINEERING 4.00 03/19/2013 MYR 1.11 SCOMI GROUP 4.00 03/19/2013 MYR 0.11 TRADEWINDS PLANT 2.00 02/08/2012 MYR 0.70 TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.10 TRC SYNERGY 5.00 01/20/2012 MYR 0.98 WAH SEONG CORP 3.00 05/21/2012 MYR 2.21 WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.31 YTL CEMENT BHD 5.00 11/10/2015 MYR 2.01 NEW ZEALAND ----------- ALLIED FARMERS 9.60 11/15/2011 NZD 49.46 ALLIED NATIONWIDE 11.52 12/29/2049 NZD 20.50 CONTACT ENERGY 8.00 05/15/2014 NZD 1.03 FLETCHER BUI 8.50 03/15/2015 NZD 8.00 FLETCHER BUI 7.55 03/15/2011 NZD 6.90 GMT BOND ISSUER 7.75 06/19/2015 NZD 0.11 INFRATIL LTD 8.50 11/15/2015 NZD 8.50 INFRATIL LTD 8.50 11/15/2015 NZD 11.00 INFRATIL LTD 10.18 12/29/2049 NZD 66.00 KIWI INCOME PROP 8.95 12/20/2014 NZD 1.35 MANUKAU CITY 6.15 09/15/2013 NZD 1.00 MANUKAU CITY 6.90 09/15/2015 NZD 1.01 MARAC FINANCE 10.50 07/15/2013 NZD 0.91 SKY NETWORK TV 4.01 10/16/2016 NZD 57.03 SOUTH CANTERBURY 10.50 06/15/2011 NZD 1.01 SOUTH CANTERBURY 10.43 12/15/2012 NZD 0.53 ST LAURENCE PROP 9.25 07/15/2010 NZD 41.69 TOWER CAPITAL 8.50 04/15/2014 NZD 1.02 TRUSTPOWER LTD 8.50 09/15/2012 NZD 7.05 TRUSTPOWER LTD 8.50 03/15/2014 NZD 7.00 TRUSTPOWER LTD 7.60 12/15/2014 NZD 1.00 TRUSTPOWER LTD 8.60 12/15/2016 NZD 1.00 UNI OF CANTERBUR 7.25 12/15/2019 NZD 1.02 VECTOR LTD 7.80 10/15/2014 NZD 1.00 VECTOR LTD 8.00 12/29/2049 NZD 7.10 SINGAPORE --------- BLUE OCEAN 11.00 06/28/2012 USD 36.00 SENGKANG MALL 8.00 11/20/2012 SGD 0.50 SENGKANG MALL 4.88 11/20/2012 SGD 0.50 UNITED ENG LTD 1.00 03/03/2014 SGD 1.60 WBL CORPORATION 2.50 06/10/2014 SGD 2.06 SOUTH KOREA ----------- DAEWOO MTR SALES 6.55 03/17/2011 KRW 71.29 DAEWOO MTR SALES 5.88 06/21/2012 KRW 60.53 ILKYUNG CO 6.00 09/07/2012 KRW 70.49 SRI LANKA --------- SRI LANKA GOVT 7.00 10/01/2023 LKR 70.94 THAILAND -------- THAILAND GOVT 0.75 01/04/2022 THB 71.35 ********* 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 ***