/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080526.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, May 26, 2008, Vol. 11, No. 103 Headlines A U S T R A L I A ACN 001 245 441: Liquidator Presents Wind-Up Report AUSTRALASIAN ADMINISTRATIVE: Placed Under Voluntary Liquidation AVB PTY: Supreme Court Enters Wind-Up Order AWB LIMITED: Sets Aside AU$26.4 Million for U.S. Unit Dispute BABCOCK & BROWN POWER: Says Banks Support Debt Refinancing BEECHWOOD HOMES: No Receivers Present at 1st Creditors' Meeting BENS CLEANING: Placed Under Voluntary Liquidation BLUE BELLE: Appoints Andrew Johnson as Liquidator CHARTWELL ENTERPRISES: Founders Face Suit Over AU$3MM Loans GREENVALE CONSTRUCTIONS: Members Opt to Liquidate Business IPTR PTY: Supreme Court Enters Wind-Up Order K C PARK: To Declare Dividend on June 4 NANGILOC PTY: Undergoes Voluntary Liquidation NORMAK PTY: Appoints Grahame Hill as Liquidator NOUGAT LIMAR: Appoints S. Naidenov as Liquidator QUESTAR SECURITIES: Liquidator Presents Wind-Up Report RAWYA CONSTRUCTIONS: Members Opt to Liquidate Business SPARKLES CARWASH: Members Opt to Liquidate Business SEDGTRANS PTY: Liquidator Gives Wind-Up Report SPEEDLINK TRAVEL: Liquidator Presents Wind-Up Report TILDEN GATES: Undergoes Voluntary Liquidation * Fitch Says Australian Credit Health Sector In Good Condition C H I N A CHINA SOUTHERN: Moves Operations to Beijing Capital Airport CITIC RESOURCES: Mulls Selling Macarthur Coal Stake CITIC RESOURCES: Discovers Oil Reservoirs at Neif Utara-A1 Well H O N G K O N G BEST GLORY: Court to Hear Wind-Up Proceedings on July 2 CHINA TOURS: Court to Hear Wind-Up Proceedings on June 25 HANG LEE: Court to Hear Wind-Up Proceedings on June 18 HANGSON SIGN: Court to Hear Wind-Up Proceedings on June 25 LUEN SHING: Commences Liquidation Proceedings NOBLE GROUP: Moody's Rates Proposed 5-Year Senior Notes Ba1 OASIS HONG KONG: Court to Hear Wind-Up Proceedings on June 11 PARKSON RETAIL: HK Unit to Issue New Shares SOUTH BAY: Court to Hear Wind-Up Proceedings on June 18 TOM GROUP: S&P Keeps BB+ Ratings on Negative CreditWatch I N D I A RAIN CALCINING: S&P Withdraws B Corporate Credit Rating STATE BANK OF INDIA: To Resume Tractor and Farm Equipment Loans TATA STEEL: Goldman Sachs Rates Firm's Shares as "Buy" TATA STEEL: Secures Permit to Find Iron Ore in TATA STEEL: To Seek People Mandate Before Starting Construction I N D O N E S I A TAME INVESTMENTS: S&P Withdraws B Rating on Planned Sr. Notes J A P A N SANYO ELECTRIC: Returns to Profit in Fiscal Year 2007 UNY CO: Fitch Cuts Foreign and Local IDRs on Weak Performance * JAPAN: Economy Remained Resilient to U.S. Slowdown, IMF Says K O R E A BHK INC: Posts KRW2.6 Billion Pretax Loss for First Quarter 2008 HYUNDAI: Inks Infotainment Systems Dev't Deal With Microsoft N E W Z E A L A N D FAR NORTH ENGINEERING: Subject to CIR's Wind-Up Petition FORTE INTERNATIONAL: Fixes June 13 as Last Day to File Claims IAMBE PROPERTIES: Fixes May 30 as Last Day to File Claims LONE ARROW: Fixes June 2 as Last Day to File Claims LUMBERJACK SAWMILLS: Wind-Up Petition Hearing Set for Today NUGGET POINT: Wind-Up Petition Hearing Set for June 3 NVITING KITCHENS: Commences Liquidation Proceedings PLYMOUTH 22: Appoints Terence Charles Webb Bastion as Liquidator SKY BLUE: Fixes May 30 as Last Day to File Claims TT WOOD PRODUCTS: Faces Allied Pine's Wind-Up Petition P H I L I P P I N E S LIBERTY TELECOMS: Wants Rehabilitation to Continue T A I W A N ASE TEST: Intends to Delist From NASDAQ Market on ASE Buyout - - - - - ================= A U S T R A L I A ================= ACN 001 245 441: Liquidator Presents Wind-Up Report ------------------------------------------------------ A.C.N. 001 245 441 held a final meeting for its members on May 19, 2008. At the meeting, the company's liquidator, Anna Uliana at Griffin Associates, provided the attendees with property disposal and winding-up reports. The liquidator can be reached at: Anna Uliana Griffin Associates Shop 7, Albion Street Mittagong NSW 2575 Australia AUSTRALASIAN ADMINISTRATIVE: Placed Under Voluntary Liquidation --------------------------------------------------------------- Australasian Administrative Commercial Fund (2005) Pty. Ltd.'s members agreed on March 27,2008, to voluntarily liquidate the company's business. S. Naidenov was appointed to facilitate the sale of its assets. The liquidator can be reached at: S. Naidenov Naidenov Insolvency & Business Advisors Level 5, 49 Market Street Sydney NSW 2000 Australia AVB PTY: Supreme Court Enters Wind-Up Order ------------------------------------------- On April 3, 2008, the Supreme Court of New South Wales entered an order to have AVB Pty. Limited's operations wound up. Christopher J. Palmer was appointed as liquidator. The liquidator can be reached at: Christopher J. Palmer O'Brien Palmer Level 4, 23 Hunter Street Sydney NSW 2000 Australia AWB LIMITED: Sets Aside AU$26.4 Million for U.S. Unit Dispute ------------------------------------------------------------- For its six months ended March 31, 2008, AWB Limited's Board of Directors has decided to take a one-off provision of AU$26.4 million for a possible liability arising from the litigation brought by Standard Chartered Bank plc against AWB (USA) Limited. In February 2005, Standard Chartered Bank brought an action against AWB (USA) in the U.S. District Court for the Southern District of New York in respect of a promissory note dispute. The amount claimed was approximately US$35 million. On January 14, 2008, Judge Hellerstein issued his opinion directing the entry of judgment against AWB (USA) in the amount of approximately US$24.2 million. On January 23, 2008, AWB (USA) filed an appeal against the judgment and the appeal is pending. Covenant Breach and Waiver Due to AWB Limited's decision to raise a provision for the Standard Chartered Bank litigation, the company was considered in technical breach of a lending covenant relating to its leverage ratio as of March 31, 2008. A letter of waiver for the covenant breach has been obtained from the participating banks. The company's management is confident that the technical breach will be rectified in the normal course of operations by June 30, 2008. The waiver was provided over AWB Commercial Funding Ltd.'s AU$400 million syndicated credit facility. At March 31, 2008, the facility was drawn to AU$30 million. S&P Takes No Action Standard & Poor's Ratings Services said that its 'BBB-' long- term corporate credit rating on AWB Ltd. is unaffected by the announcement that AWB had breached a lending covenant relating to its leverage ratio. The outlook remains negative. The rating agency believes that the underlying operations of AWB remain sound, despite ongoing uncertainty surrounding AWB's future role in export-wheat marketing and the scope of AWB's long-term ability to earn finance and risk-management fees for marketing export wheat. In addition, S&P said AWB's recent earnings results have been adversely affected by significant charges taken for costs associated with the Cole inquiry, redundancies and restructuring, and other one-off items. 1st Half 2008 Results AWB Limited recorded a net profit after tax for the first half ended March 31, 2008, of AU$22.3 million, an 89 percent increase from AU$11.8 million in the previous corresponding period. The company's revenue increased 35.4 percent to AU$3,199.3 million from AU$2,363.0 million. AWB Limited's net profit after tax before significant items increased by AU$23.8 million, or 96 percent, to AU$48.7 million for the six months ended March 31, 2008, compared to AU$24.9 million in the same period last year. As of March 31, 2008, the company's balance sheet showed total assets of AU$6,160,311,000, total liabilities of AU$5,060,732,000 and total equity of AU$1,099,579,000. About AWB Limited Australia-based AWB Limited is enganged in agribusiness and wheat marketing. The company employs more than 2,200 people across more than 500 points of presence in Australia, India, Brazil, Switzerland and Singapore to the People’s Republic of China and Japan. Its client base extends to 110,000 customers, serviced by three core business streams: Landmark Rural Services, Financial Services and Commodity Management. The geographic spread of its activities sees 40% of earnings from outside of Australia. BABCOCK & BROWN POWER: Says Banks Support Debt Refinancing ---------------------------------------------------------- Babcock & Brown Power disclosed in a regulatory filing that it has received strong support from banks for its proposed debt refinancing program. The company said its total capital requirements comprised of refinancing of existing AU$3.1 billion of Alinta acquisition and project finance debt and equity capital funding for new development projects being undertaken through to mid 2009. Babcock & Brown said it has restructured the financing to a AU$2.7 billion level to ensure an investment credit rating will be achieved. The next step in the program, the company said, is the completion of a Corporate Debt Facility (BBPH Holdings level) of up to AU$0.36 billion providing total bank debt of approximately AU$3.06 billion. The company has aggregate capital requirements of approximately AU$0.3 billion in relation to the Tamar Project and Newman Expansion, AU$0.065 billion of which has already been funded from cash reserves. Earlier, Babcock & Brown confirmed that it is on track to finalize its debt refinancing. Accordingly, the company said it is considering its overall capital structure and appropriate gearing level. The company said there are a number of options available to fund the additional capital commitments including debt, asset sales, asset joint ventures or various forms of equity. Babcock & Brown intends to reach a decision on the optimal capital structure around the time of the close of the core refinancing with funding expected to occur in early June 2008. Mr. Paul Simshauser, CEO said " As stated previously we have been very pleased with the strong support we have received from a wide range of banks which in the current difficult credit environment is a strong endorsement of the quality of the BBP assets. We are all looking forward to the time when the focus will move away from our financing requirements to the strong industry dynamics in which BBP’s assets operate and the related long term growth prospects for BBP securityholders.” About Babcock & Brown Power Australia-based Babcock & Brown Power (ASX:BBP) is a power generation business, with assets diversified by geographic location, fuel source, customers, contract types and operating mode. The portfolio has interests in 14 operating power stations representing over 4,000MW of installed generation capacity and five power stations under construction. BBP has interests in a number of other associated power assets including the WA retail assets Alinta. Babcock & Brown has been developing, operating and acquiring the generation portfolio over a period of 10 years. * * * For the half-year ended December 31, 2007, Babcock & Brown Power returned to profit after two consecutive losses in the prior comparable periods. The company posted a net profit of AU$90,806,000 for the current half year compared to net losses of AU$50,803,000 and AU$19,863,000 in the half years ended June 30, 2007 and December 31, 2006, respectively. The company's balance sheet as of December 31, 2007, showed strained liquidity with total current assets of AU$756,707,000 available to pay AU$2,630,670,000 in total current liabilities. BEECHWOOD HOMES: No Receivers Present at 1st Creditors' Meeting --------------------------------------------------------------- The Australian reports that the receivers appointed to oversee the assets of troubled Beechwood Homes failed to attend the company's first creditors' meeting held May 24, 2008. About 150 home buyers present at the meeting were "very pissed off," the report says, citing Beechwood administrator Andrew Wily of Armstrong Wily. On May 14, 2008, following the appointment of voluntary administrators by the Directors of Beechwood Homes, David Lombe and Chris Campbell from the Deloitte Corporate Reorganization Group were appointed by a secured creditor as receivers and managers of Beechwood Homes, being made up of L.E.D. Builders Pty Limited, L.E.D. (North Coast) Pty Limited, L.E.D. (South Coast) Pty Limited (All Receivers and Managers Appointed) (In Administration). According to The Australian, Deloitte spokeswoman Karina Randall denied the receivers were required to attend the meeting. "It's standard. It was a voluntary meeting held by the administrators," Ms. Randall was cited in the report as saying. The report says creditors were told Deloitte had decided against attending because it had yet to gather enough information about Beechwood since its collapse last week. The Australian relates that about 400 building subcontractors are owed about AU$10million by Beechwood and the property group's biggest creditor, BankWest, is owed a further AU$10 million. Meanwhile, Deloitte said in a press statement released on the day of their appointment that Beechwood's Directors appointed a voluntary administrator without the consent or knowledge of the secured creditor. As a consequence the secured creditor took steps to appoint receivers and managers. Deloitte stated that prior to its appointment, the company had preliminary discussions with a number of parties interested in buying the business. Deloitte said it is endeavouring to speak with those and other interested parties who may wish to purchase the assets of the company and will also be contacting the respective home buyers to inform them of the position of the company and its ability to complete their homes. Beechwood Homes is an Australian owned family company that was started in the early 1980s, and is currently building approximately 350 homes. BENS CLEANING: Placed Under Voluntary Liquidation --------------------------------------------------- Bens Cleaning Co. Pty. Ltd.'s members agreed on March 17,2008, to voluntarily liquidate the company's business. S. Naidenov was appointed to facilitate the sale of its assets. The liquidator can be reached at: S. Naidenov Naidenov Insolvency & Business Advisors Level 5, 49 Market Street Sydney NSW 2000 Australia BLUE BELLE: Appoints Andrew Johnson as Liquidator ------------------------------------------------- Blue Belle Pty. Ltd.'s members agreed on April 2,2008, to voluntarily liquidate the company's business. Andrew Johnson was appointed to facilitate the sale of its assets. The liquidator can be reached at: Andrew Johnson Johnsons Business Recovery & Insolvency Suite 3.05, Level 3 65 York Street Sydney NSW 2000 Australia CHARTWELL ENTERPRISES: Founders Face Suit Over AU$3MM Loans ----------------------------------------------------------- Chartwell Enterprises' administrators are hoping to retrieve, through a legal action, money loaned to the company's directors for personal expenses, ABC News reports. The report says Directors Graeme Hoy and Ian Rau allegedly borrowed more than AU$3 million to fund costs such as home renovations. Both directors also face the possibility of criminal charges of trading while insolvent, the report relates. Meanwhile, Aleks Devic of Geelong Advertiser says only 72 cents remained in Chartwell Enterprises' trading account of the AU$13.3 million investors poured in the last 10 months before its collapse. The figure owed to investors had climbed from AU$52.4 million to AU$80 million, Geelong Advertiser said citing Bruno Secatore, one of the administrators of Chartwell Enterprises. On May 7, 2008, the Troubled Company Reporter-Asia Pacific, citing The Australian Associated Press, reported that Mr. Secatore said he will recommend the liquidation of the company because he does not expect to retrieve any money. About 125 creditors, who invested between AU$10,000 to AU$5 million, attended a two-hour meeting in the Geelong West Town Hall on May 5, 2007, and many of them left very upset by what they learned, the AAP said. "There were a lot of disappointed people and many were holding back from crying," the AAP quoted a creditor who did not want to be named. According to the AAP, Mr. Secatore told creditors that Chartwell had not been audited for five years and had not paid any tax for five years. Another creditors' meeting is scheduled for May 28, at which time Mr. Secatore said he will make his recommendation, the AAP relates. About Chartwell Enterprises Based in Geelong, Australia, Chartwell Enterprises was founded by Ian Rau and Graeme Hoy. Mr. Hoy also owns a hospitality company which has recently been placed in receivership. The Troubled Company Reporter-Asia Pacific reported on April 30, 2008, that administrators have been appointed to look into the collapse of Chartwell Enterprises. The Australian Securities and Investments Commission is also investigating Chartwell Enterprises, which owes about 100 staff and investors millions of dollars. Bruno Secatore from Cor Cordis Chartered Accountants was appointed as one of the administrators. GREENVALE CONSTRUCTIONS: Members Opt to Liquidate Business ---------------------------------------------------------- Greenvale Constructions Pty. Ltd.'s members agreed on April 4, 2008, to voluntarily liquidate the company's business. David Anthony Hurst and Andrew Hugh Jenner Wily were appointed to facilitate the sale of its assets. The liquidator can be reached at: D. A. Hurst Armstrong Wily Chartered Accountants Level 5, 75 Castlereagh Street Sydney NSW 2000 Australia IPTR PTY: Supreme Court Enters Wind-Up Order -------------------------------------------- On March 17, 2008, the Supreme Court of New South Wales entered an order to have IPTR Pty. Limited's operations wound up. Ashton Brailey was appointed as liquidator. The liquidator can be reached at: Ashton Brailey Ashton Brailey & Co Accountants Suite 8, 14 Frenchs Forest Road Frenchs Forest NSW 2086 Australia Telephone: (02) 9453 5733 Facsimile: (02) 9453 2055 K C PARK: To Declare Dividend on June 4 --------------------------------------- K C Park Safe Group Pty. Ltd. will declare dividend on June 4, 2008. Only creditors who were able to file their proofs of debt by May 6, 2008, will be included in the company's dividend distribution. The company's liquidator is: A. R.Yeo Pitcher Partners Level 19, 15 William Street Melbourne VIC 3000 Australia NANGILOC PTY: Undergoes Voluntary Liquidation --------------------------------------------- Nangiloc Pty. Ltd.'s members agreed on April 2,2008, to voluntarily liquidate the company's business. Douglas Arthur Trood was appointed to facilitate the sale of its assets. NORMAK PTY: Appoints Grahame Hill as Liquidator ----------------------------------------------- Normak Pty. Ltd.'s members agreed on April 3,2008, to voluntarily liquidate the company's business. Grahame Hill was appointed to facilitate the sale of its assets. The liquidator can be reached at: Grahame Hill Hills Insolvency Services Pty Ltd PO Box 915 Rockdale NSW 2216 Australia Telephone: (02) 9599 7945 Facsimile: (02) 9599 7946 NOUGAT LIMAR: Appoints S. Naidenov as Liquidator ------------------------------------------------ Nougat Limar Pty. Ltd.'s members agreed on March 27,2008, to voluntarily liquidate the company's business. S. Naidenov was appointed to facilitate the sale of its assets. The liquidator can be reached at: S. Naidenov Naidenov Insolvency & Business Advisors Level 5, 49 Market Street Sydney NSW 2000 Australia QUESTAR SECURITIES: Liquidator Presents Wind-Up Report ------------ ----------------------------------------- Questar Securities Pty Ltd. held a final meeting for its members on May 19, 2008. At the meeting, the company's liquidator, Donald Dunlop at Cutcher & Neale, provided the attendees with property disposal and winding-up reports. The liquidator can be reached at: Donald Dunlop Cutcher & Neale PO Box 694 Newcastle NSW 2300 Australia RAWYA CONSTRUCTIONS: Members Opt to Liquidate Business ------------------------------------------------------ Rawya Constructions Pty. Ltd.'s members agreed on March 17,2008, to voluntarily liquidate the company's business. S. Naidenov was appointed to facilitate the sale of its assets. The liquidator can be reached at: S. Naidenov Naidenov Insolvency & Business Advisors Level 5, 49 Market Street Sydney NSW 2000 Australia SPARKLES CARWASH: Members Opt to Liquidate Business --------------------------------------------------- Sparkles Carwash Coffee Lounge Pty. Ltd.'s members agreed on April 2, 2008, to voluntarily liquidate the company's business. Mitchell Ball was appointed to facilitate the sale of its assets. The liquidator can be reached at: Mitchell Ball Paladin Partners Level 3, 120 Sussex St. Sydney NSW 2000 Australia Telephone (02) 9290 5300 Facsimile (02) 9290 5399 SEDGTRANS PTY: Liquidator Gives Wind-Up Report ---------------------------------------------- Sedgtrans Pty Ltd. held a joint meeting for its members and creditors on May 15, 2008. At the meeting, the company's liquidator, D. I. Mansfield at Moore Stephens, provided the attendees with property disposal and winding-up reports. The liquidator can be reached at: D. I. Mansfield Moore Stephens Level 6, 460 Church Street Parramatta NSW 2150 Australia SPEEDLINK TRAVEL: Liquidator Presents Wind-Up Report ---------------------------------------------------- Speedlink Travel Pty Ltd. held a joint meeting for its members and creditors on May 15, 2008. At the meeting, the company's liquidator, R. J. Porter at Moore Stephens, provided the attendees with property disposal and winding-up reports. The liquidator can be reached at: R. J. Porter Moore Stephens Level 6, 460 Church Street Parramatta NSW 2150 Australia TILDEN GATES: Undergoes Voluntary Liquidation --------------------------------------------- Tilden Gates Pty. Ltd.'s members agreed on April 1,2008, to voluntarily liquidate the company's business. Tim Bryan was appointed to facilitate the sale of its assets. The liquidator can be reached at: Tim Bryan BCP Accounting and Business Advisors PO Box 417 Campbelltown NSW 2560 * Fitch Says Australian Credit Health Sector In Good Condition -------------------------------------------------------------- Fitch Ratings said, based on a new report of the credit health of Australian corporates entitled "A Tale of Three Sectors", that the sector is in generally good condition, with broad key credit ratios showing no material deterioration over the past few years. However, closer examination shows some material disparities between sectors. Three broad themes emerge. Firstly, the survey's findings, which the report is based on, confirm the strength of the materials sector, which includes miners BHP Billiton and Rio Tinto. Credit ratios for the sector have gone from strength to strength since the mid-2000s. Secondly and conversely, credit ratios for the financial sector, have deteriorated. It is perhaps not surprising that this sector, which includes Allco Finance Group and Centro Properties Group, has given rise to most of the corporate credit issues since the shake-up in the local debt market began in July 2007. The utilities sector has also become more highly geared over the past five years. Thirdly, credit ratios for the other sectors covered by the survey, which include Consumer Discretionary, Consumer Staples, Energy, Health Care, Industrials, IT and Telecommunications, are generally satisfactory and do not indicate any systemic credit concerns. On the key ratio of Net Debt/EBITDA, many of these sectors have trended down over the past five years or more, with none much above a comfortable 2x. One measure which has shown a gradual deterioration is Cash Flow from Operations to Net Interest Expense, which takes into account the effect of rising interest rates; this ratio has trended down since 2005, thanks predominantly to rising interest rates, but still remains at a reasonable 4x or more, for all sectors other than financials and utilities. While it is possible that we will continue to see sporadic examples of corporates getting into financial difficulties, the survey suggests that, to date, there is little to indicate a general malaise, particularly given the on-going strength of the materials sector. The survey covers over 2,600 listed Australian corporates and covers the period 1992 - 2007, with information sourced from company financial statements collated by Morningstar Research Pty Ltd. ========= C H I N A ========= CHINA SOUTHERN: Moves Operations to Beijing Capital Airport ----------------------------------------------------------- China Southern Airlines has moved its operations to Terminal-2 at the Beijing Capital Airport, Datamonitor News reports. According to the report, the airline has been using the Terminal-1 at the Beijing Capital Airport for almost four years but it can no longer meet the carrier's steadily increasing passenger numbers. In 2009, China Southern Airlines will receive five Airbus A380s and base all of them in Beijing, to service outbound international flights from the Chinese capital, the report relates. China Southern's move to Terminal-2 is expected to offer passengers an optimized departure and arrival process, offering them seamless services and numerous customized ground services, Datamonitor News adds. About China Southern Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 3, 2008, Fitch Ratings affirmed China Southern Airlines Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer Default Ratings at 'B+'. The Outlook on the ratings is Stable. CITIC RESOURCES: Mulls Selling Macarthur Coal Stake --------------------------------------------------- Citic Resources Holdings Limited is considering selling its 17.66% stake in Australia's Macarthur Coal Ltd. "if the price is right," various reports say. Aries Poon of Dow Jones reports that an unnamed source said a potential buyer has approached the company. "The talks are still going on. If the price is right, Citic is willing to sell it," the source told Dow Jones. Chen Zeng, managing director of Citic Australia Pty Ltd., told Bloomberg News that their stake in Macarthur is a strategic and long-term investment. Dow Jones' source relates that the company could also opt to its Macarthur shares and raise its holding by buying the stakes of existing shareholders. Meanwhile, Dow Jones says ArcelorMittal has taken a 14.9% stake in Macarthur. "ArcelorMittal has approached Macarthur Coal in respect of a potential transaction," Dow Jones cited Macarthur as saying. About CITIC Resources Incorporated in Bermuda in 1997, CITIC Resources has its shares listed on the Hong Kong Stock Exchange. The company positions itself as an integrated provider of key commodities and strategic natural resources with particular focus in oil business. The principal activities of the company and its subsidiaries are in the fields of oil, aluminium, coal, import and export of commodities, manganese and iron ore. CITIC Group (formerly China International Trust and Investment Corporation) became the majority controlling shareholder of the Company in March 2004, indirectly holding interest in the Company of over 54%. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 19, 2007, that Moody's Investors Service affirmed the Ba2 corporate family rating on CITIC Resources Holdings Ltd, and the Ba2 rating of the US$1 billion seven-year unsecured senior notes issued by CITIC Resources Finance (2007) Ltd and guaranteed by CITIC Resources. The Troubled Company Reporter-Asia Pacific reported on July 31, 2007, that Standard & Poor's Ratings Services raised the corporate credit rating on CITIC Resources Holdings Ltd. to 'BB+' from 'BB'. CITIC RESOURCES: Discovers Oil Reservoirs at Neif Utara-A1 Well --------------------------------------------------------------- CITIC Resources Holdings Limited discovered the Lower Nief and Manusela carbonate oil reservoirs at the Neif Utara-A1 drilling well located at Seram Island in Indonesia. Lower Nief oil reservoir is the first discovery in the region. The Original Oil in Place (OOIP) of the Neif Utara-A1 drilling well is over 60 million barrels. Thus, the current total Original Oil in Place exceeds 123.6 million barrels. The Nief Utara-A1 well's drilling prospect (Neif Utra A prospect) covers an area of approximately 4 square kilometer; Original Oil in Place is over 60 million barrels and the 3P recoverable reserves exceed 18 million barrels (Recoverable reserves of P1 + P2 are approximately 6 million barrels). With more wells to be drilled, it is expected to see an increase of the P1+P2 recoverable reserves. According to Schlumberger, an internationally renowned logging company, Lower Nief is an oil reservoir mainly composed of substrates with an average porosity of 5% and the effective thickness of the oil reservoir is close to 400 ft; as for Manusela, which has substrate and cleft stores oil, has an average porosity of 7% and the effective thickness of the oil reservoir is above 200 ft. Manusela made the initial test production in early May, under the 250psi draw down pressure, it got about 700 barrels per day (excluding water). Nief Utra A prospect is the first prospect being explored in the Seram Island Non-Bula Block with 5 other prospects remain unexplored. The Group plans to drill two more drilling wells and 2 exploration wells this year. The second Nief Utara –A2 well has been drilled on May 19 . The group will also execute the latest 2D seismic data collection project, which is believed to provide more and better exploration target. Mr. Sun Xinguo, the Chief Executive Officer of the Group, said, "The new discovery by the Nief Utara-A1 well is very encouraging. With the Group's own exploration techniques, the successful rate of further exploration has been raised substantially. The oil reserves in Seram Island Non-Bula Block will be increased significantly. The discovery of the new oil sheet Lower Nief has built a sound foundation for further oil production. We strongly believe that the whole Seram Island Non-Bula Block to have a very positive prospect." About CITIC Resources Incorporated in Bermuda in 1997, CITIC Resources has its shares listed on the Hong Kong Stock Exchange. The company positions itself as an integrated provider of key commodities and strategic natural resources with particular focus in oil business. The principal activities of the company and its subsidiaries are in the fields of oil, aluminium, coal, import and export of commodities, manganese and iron ore. CITIC Group (formerly China International Trust and Investment Corporation) became the majority controlling shareholder of the Company in March 2004, indirectly holding interest in the Company of over 54%. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 19, 2007, that Moody's Investors Service affirmed the Ba2 corporate family rating on CITIC Resources Holdings Ltd, and the Ba2 rating of the US$1 billion seven-year unsecured senior notes issued by CITIC Resources Finance (2007) Ltd and guaranteed by CITIC Resources. The Troubled Company Reporter-Asia Pacific reported on July 31, 2007, that Standard & Poor's Ratings Services raised the corporate credit rating on CITIC Resources Holdings Ltd. to 'BB+' from 'BB'. ================ H O N G K O N G ================ BEST GLORY: Court to Hear Wind-Up Proceedings on July 2 ------------------------------------------------------- On April 28, 2008, Bank of China (Hong Kong) Limited, filed a petition to have Best Glory International Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on July 2, 2008, to hear the petition. The petitioners' solicitor can be reached at: Arthur K.H. Chan & Co. 34th Floor, Hopewell Centre Unit C, 15th Floor, United Centre No. 95 Queensway, Hong Kong CHINA TOURS: Court to Hear Wind-Up Proceedings on June 25 --------------------------------------------------------- On April 23, 2008, Soares Carmen Maria Limited, filed a petition to have its operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on June 25, 2008, to hear the petition. The petitioners' solicitor can be reached at: Louis Chan & Co. Haleson Building, No. 1 Jubille Street Central, Hong Kong HANG LEE: Court to Hear Wind-Up Proceedings on June 18 ------------------------------------------------------ On April 14, 2008, Leung Suui Keung, filed a petition to have Hang Lee Development Holdings Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on June18, 2008, to hear the petition. The petitioners' solicitor can be reached at: Chong Yan-tung Chris 34th Floor, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong HANGSON SIGN: Court to Hear Wind-Up Proceedings on June 25 ---------------------------------------------------------- On April 22, 2008, Modern (International) Access & Scaffolding Limited, filed a petition to have Hangson Sign Production operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on June 11, 2008, to hear the petition. The petitioners' solicitor can be reached at: Chris H. M. Yuen & Co. World Wide House 19 Des Voeux Road Central Hong Kong LUEN SHING: Commences Liquidation Proceedings --------------------------------------------- Luen Shing Rice Company Limited's members agreed on May 7, 2008, to voluntarily liquidate the company's business. The company has appointed Tai Yuen Ling and Lu Chi Kit to facilitate the sale of its assets. The liquidators can be reached at: Tai Yuen Ling Lu Chi Kit JCG Building, 14th Floor 16 Mongkok Road, Mongkok Hong Kong NOBLE GROUP: Moody's Rates Proposed 5-Year Senior Notes Ba1 ----------------------------------------------------------- Moody's Investors Service has assigned a Ba1 rating to the proposed 5-year senior notes of Noble Group Ltd. At the same time, Moody's has affirmed Noble's Ba1 corporate family rating. The outlook for the ratings is stable. Noble expects to apply the proceeds from the notes for refinancing. Noble is a global trader and supply chain manager and the largest in Asia. It is involved in a diversified range of commodity products. It is engaged in the sourcing, storage, transportation and distribution of agricultural, energy and industrial products. Noble is also one of Asia's largest bulk charterers providing vessel chartering and other related services for its own commodity product divisions as well as for third party customers. Headquartered in Hong Kong, it is listed on the Singapore Stock Exchange. It has over 100 offices in more than 40 countries. OASIS HONG KONG: Court to Hear Wind-Up Proceedings on June 11 ------------------------------------------------------------- On April 28, 2008, Oasis Hong Kong Airlines Limited, filed a petition to have its operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on June 11, 2008, to hear the petition. The petitioners' solicitor can be reached at: Tanner De Witt 1806, Tower Two, Lippo Centre 89 Queensway, Hong Kong PARKSON RETAIL: HK Unit to Issue New Shares ------------------------------------------- Parkson Retail Group Limited is planning a new share issue, Soo Ai Peng of Reuters reports, citing its Malaysian holding company, Parkson Holdings Bhd. As reported by the Troubled Company Reporter-Asia Pacific on May 22, 2008, trading of Parkson Retail's shares on the Stock Exchange of Hong Kong Limited has been suspended pending the release of an announcement by the company in relation to a discloseable and connected transaction which contains price sensitive information of the company and involve issuance of new shares by the company. Parkson Holdings' stock fell 0.8% to INR6.60 (US$2.05) before the suspension, Reuters relates. About Parkson Retail Group Headquartered in Hong Kong, Parkson Retail Group Limited operates department stores including 37 "Parkson"branded department stores and 2 "Xtra"branded supercentres situated in 26 cities in the People's Republic of China. Other activities include provision of consultancy and management services, research and development of computer software and investment holding. * * * As of April 26, 2008, Parkson Retail Group Limited continues to carry Moody's "Ba1"Senior Unsecured Debt, Senior Secured Debt, and Long-Term Corporate Family Ratings with a Stable outlook. In addition, Parkson Retail still carries Standard & Poor's "BB" long-term local and foreign issuer credit ratings. SOUTH BAY: Court to Hear Wind-Up Proceedings on June 18 ------------------------------------------------------ On April 14, 2008, Leu Sau Chi, filed a petition to have South Bay Vietnamese Restaurant Limited's operations wound up. The High Court of Hong Kong will convene at 9:30 a.m. on June 18, 2008, to hear the petition. The petitioners' solicitor can be reached at: Chong Yan-tung Chris 34th Floor, Hopewell Centre 183 Queen's Road East Wanchai, Hong Kong TOM GROUP: S&P Keeps BB+ Ratings on Negative CreditWatch -------------------------------------------------------- Standard & Poor's Ratings Services said Friday that the ratings on TOM Group Ltd. will remain on CreditWatch with negative implications. Standard & Poor's placed its 'BB+' long-term corporate credit rating on TOM and the 'BB+' issue rating on US$150 million convertible bonds due 2008 issued by the company's subsidiary TOM Holdings Ltd. on CreditWatch with negative implications on Oct. 22. 2007. "We have still not received adequate information to resolve the CreditWatch placement," said Standard & Poor's credit analyst Ryan Tsang. "The ratings on the company are likely to be lowered unless we are satisfied that TOM's new strategy can mitigate the negative impact of several key issues on its operating performance." "The original CreditWatch placement reflected a weakening of TOM's wireless Internet service, which has historically accounted for more than 50% of its revenue. We are also awaiting clarification on management's response to the strategic alliance between China Mobile Ltd. (A/Positive/--) and several other mobile phone producers that has negatively affected its wireless Internet operations. Recent management restructuring at TOM has added to the uncertainty over the company's future business strategy," S&P said. The CreditWatch status will be resolved after Standard & Poor's can fully assess the implications of the recent structural changes to TOMs' overall business, particularly its wireless arm, and analyze the overall impact of its new strategy. ========= I N D I A ========= RAIN CALCINING: S&P Withdraws B Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services said Friday it withdrew its 'B' corporate credit rating on India-based calcined petroleum coke producer, Rain Calcining Ltd. (RCL). At the same time, Standard & Poor's also withdrew its 'B' rating on the US$395 million senior secured debt of RCL. This follows the completion of the corporate reorganization and documentation by the Rain group. The management of Rain CII Carbon (India) Ltd. (formerly called RCL) has confirmed that it has been transferred all of RCL's assets and liabilities, including the corporate guarantee provided to the creditors of Rain CII Carbon LLC (Rain CII LLC, not rated), under this reorganization. "We have therefore assigned our 'B' corporate credit rating to India-based Rain CII India. The outlook is stable. At the same time, we assigned our 'B' issue rating to the US$395 million senior secured debt co-borrowed by both Rain CII India and Rain CII LLC, with a recovery rating of '3', indicating that lenders can expect meaningful recovery (50%-70%) in the event of payment default," S&P said. Rain CII LLC (formerly called CII Carbon LLC) was acquired in 2007 and is now a wholly owned subsidiary of Rain CII India (see previous reports titled "CII Carbon LLC Ratings Withdrawn On Takeover By Rain Calcining, Repayment of Bank Facility" published Sept. 11, 2007, and "Rain Calcining Ltd., Subsidiary CII Carbon Rated 'B'; Notes Rated 'CCC+'" published Oct. 30, 2007, on RatingsDirect). The terms and conditions under the US$395 million senior secured debt facility and the US$235 million senior subordinated notes remain unchanged. The business activities of its ultimate parent, Rain Commodities Ltd., remain ring-fenced from Rain CII India. "We maintain our issue rating on Rain CII LLC's US$235 million senior subordinated notes at 'CCC+', with a recovery rating of '6', indicating the expectations of negligible (0%-10%) recovery in the event of payment default," S&P said. The ratings on Rain CII India incorporate a view of the consolidated entity including Rain CII LLC. Overall, based on current available information, the credit risk profile of the new entity remains consistent with the current rating. STATE BANK OF INDIA: To Resume Tractor and Farm Equipment Loans --------------------------------------------------------------- State Bank of India said that it would resume tractor and farm equipment loans with immediate effect, having earlier suspended new loans because of rising defaults, Reuters reports. "We regret that our circular dated May 16, concerning tractor loans has been misunderstood and has given rise to concern. The circular is withdrawn with immediate effect", said a statement from O.P Bhatt, the Bank's Chairman, as quoted by Reuters. On May 23, 2008, the Troubled Company Reporter-Asia Pacific, citing an article by Joe Leahy of the Financial Times, reported that India's state-owned banks reported a sharp rise in defaults by rural lenders since the government implemented its plan to waive US$15 billion (EUR9.59 billion, GBP7.62 billion) in loans to farmers, According to FT's report, the State Bank of India has been forced to suspend loans for tractors and other machinery after many farmers stopped paying their debts on news of the waiver. In the year ended March, the FT relates that bad loans at India’s biggest bank rose by about INR29 billion, of which about INR9 billion came in the final quarter largely from farmers. The FT report said the increase in non-performing assets from agriculture is not an immediate threat to the health of most banks, however, the trend could worsen until the government releases details of the new scheme. “The scheme was meant to be limited to the very small and marginal farmers,” Mangesh Kulkarni, banking analyst with Almondz Global Securities told the FT. “But the farmers have taken it wrongly. Everybody thinks everybody will get the benefit and they have stopped repayments.” About State Bank of India Headquartered in Mumbai, State Bank of India -- http://www.sbi.co.in/-- is a financial services group operating primarily in the banking industry. Its core operations include Treasury Operations, Corporate Banking Group, National Banking Group and International Banking Group. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 19, 2008, Fitch Ratings affirmed the State Bank of India's 'C' Individual rating and 'BB' USD400 million perpetual non- cumulative Tier 1 bonds rating. TATA STEEL: Goldman Sachs Rates Firm's Shares as "Buy" ------------------------------------------------------ Goldman Sachs Group Inc. raised Tata Steel Ltd.'s rating to 'buy' from 'neutral' with a positive outlook for prices in Europe, raising the target price by 51% to 1,120 rupees from 742 rupees, Bloomberg News reports. Tata Steel, the report says, sells more than two-thirds of its output in Europe after the company bought Corus Group Plc in January 2007 for US$13 billion. "With a high degree of leverage to European spot steel prices and roughly 70% of output sold in Europe, we believe this is a good vehicle for exposure to the current steel cycle," Bloomberg News quotes Goldman analysts Pritesh Vinay and Sandeep Pandya as saying. Bloomberg adds that Corus and ArcelorMittal have raised prices this year after agreeing to a threefold increase in benchmark annual coking coal prices and at least a 65% jump in the cost of iron ore. Corus is considering asking customers to pay a raw-material surcharge after iron-ore and coal prices reached records, London-based spokeswoman Annanya Sarin told Bloomberg in an interview. On July 1, prices for electric steel made by its Cogent Power division were also raised because of raw-material costs, the report says. About Tata Steel Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. * * * As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating was removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd., and changed the outlook to negative from stable. TATA STEEL: Secures Permit to Find Iron Ore in ---------------------------------------------- Tata Steel has secured a permit to find Iron Ore in the eastern Jharkhand state as it doubles production to 10 millon tons, the India Infoline News Service reports. According to Infoline News, a statement by the Ministry of Mines states that the permit allows Tata Steel to prospect an 1808- hectare (4,468 acres) area. In April 2008, Tata was allowed by the nation's highest court to seek the environment ministry's clearance to mine iron ore in a forest area in the Chhattisgarh state, where the company plans to build a 5 million-ton plant, the report said. About Tata Steel Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. * * * As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating was removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd., and changed the outlook to negative from stable. TATA STEEL: To Seek People Mandate Before Starting Construction --------------------------------------------------------------- TATA Steel will seek the people mandate before starting the construction work for its proposed INR15,400 crore six million tonne per annum integrated Greenfield steel plant in Kalinga Nagar, Steelguru News said. Earlier reports indicated that tribals from Kalinga Nagar are opposing the company's project. According to Steelguru, HM Nerurkar, COO of TATA Steel, said that the company is in continuous discussion with the local people and Visthapan Virodhi Manch, and is ready to talk to anyone to solve the problem. "I think there have been some mistakes let us say from our side, in not understanding the people. We will go for construction after getting positive approval from the people, mandate from the people in a peaceful manner, Steelguru cites HM Nerurkar as saying. About Tata Steel Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- manufactures steel, and ferro alloys and minerals. Tata Steel's products are targeted at the auto sector and construction industry. With wire manufacturing facilities in India, Sri Lanka and Thailand, the company plans to emerge as a major global player in the wire business. * * * As reported in the Troubled Company Reporter-Asia Pacific, Standard & Poor's Ratings Services, on July 10, 2007, lowered its corporate credit rating on Tata Steel to 'BB' from 'BBB.' The outlook is positive. The rating was removed from CreditWatch, where it was placed on Oct. 18, 2006, with negative implications after its announcement on acquiring Corus Group PLC (Corus, BB-/Stable/--). Moody's Investors Service, on Sept. 18, 2007, affirmed the Ba1 corporate family rating of Tata Steel Ltd., and changed the outlook to negative from stable. ================= I N D O N E S I A ================= TAME INVESTMENTS: S&P Withdraws B Rating on Planned Sr. Notes ------------------------------------------------------------- Standard & Poor's Ratings Services said Friday it withdrew these issue ratings: -- 'BB-' issue rating assigned to the proposed US$425 million senior secured notes by Listrindo Capital B.V., a fully owned subsidiary of PT Cikarang Listrindo incorporated in The Netherlands, established solely for issuing this debt instrument. -- 'B-' rating on the proposed US$300 million senior unsecured bond due in 2012 to be issued by S2P Power B.V., PT Sumber Segara Primadaya's (S2P) wholly owned subsidiary incorporated in The Netherlands, established solely for issuing this debt instrument. -- 'B' rating on Indonesia-based TAME Investments Pte. Ltd.'s planned senior guaranteed notes. The issue rating was assigned on April 25, with the proposed notes to be guaranteed by PT Truba Alam Manunggal Engineering Tbk and its operating subsidiaries. -- 'B-' rating and recovery rating of '6' on the proposed US$475 million second-lien notes due 2015 to be issued by Global A&T Electronics Ltd. These issue ratings, which were subject to final documentation, have been withdrawn after one of the following reasons: (1) cancellation by the company, or (2) protracted delay on the completion of their issuance and continuing uncertainties in the near term. ========= J A P A N ========= SANYO ELECTRIC: Returns to Profit in Fiscal Year 2007 ----------------------------------------------------- SANYO Electric Co. Ltd.'s consolidated sales total rose for the Fiscal Year 2007 ended March 31, 2008, by 7.2% to JPY2017.8 billion, compared to the last year. For the Japanese market, because of the unfavorable sales of home appliances products and commercial-use equipment such as showcases and kitchen instruments, there was an overall decrease of 5.0%, totaling JPY742.5 billion compared to last year. As for overseas markets, there were favorable and increased sales in digital cameras, rechargeable batteries and solar photovoltaic modules as well as strong sales in commercial-use air conditioners, showing a strong increase of 15.9% from the last year to total JPY1275.3 billion. As for operating profit, in spite of the escalating costs of raw materials and the appreciation of the Japanese yen, FY 2007 ended with an operating profit of JPY76.1 billion, an increase of 78.7% over the last year due to increased sales in digital cameras and rechargeable batteries, and electronic devices. Profit before tax for continuing operations, showed a strong recovery of JPY73.3 billion, reaching JPY57.2 billion. The net profit for the year after taxes was JPY28.7 billion, a recovery of JPY74.1 billion over the last fiscal year. For the 2006 Fiscal Year ended March 31, 2007, SANYO incurred a net loss of JPY45,362 million on net sales of JPY1,882,612 million. The company's balance sheet as of March 31, 2008, showed total assets of JPY 1,683,837 million, total liabilities of JPY1,349,400 million and total stockholders’ equity of JPY308,043 million. SANYO also launched its new ‘Mid-term Management Plan’, a new three-year (FY 2008 – FY 2010) plan based on the ‘Master Plan’ announced last November, making clear the path to profitability and ensuring future sustainable growth. Within the plan, more specific target goals were outlined, all focusing on completing the ‘Challenge 1000’, a challenge for the group to achieve an operating profit of 100 billion JPY within 1000 days (approximately three years). Seiichiro Sano, Executive Director & President of SANYO, commented, “The results of FY 2007 eclipsed the forecast in terms of profit, surging as much as 78.7% compared to last year, and have moved the balance sheet back into the black after four fiscal years.“ Though the business environment in the FY2008 will be expected to be difficult because of issues such as currency exchange rates, the elevating cost of raw materials among other factors, SANYO plans to position FY 2008 as a year for the prior investment needed to reach the goal of achieving an operating profit of JPY100 billion by the end of FY 2010, the last year of the newly outlined Mid-term Management Plan. President Sano added, “We will focus the majority of the JPY122.5 billion planned investment in the Energy Business Area, especially for products such as rechargeable batteries and solar photovoltaic modules. While we have forecast a reduction in operating profit for FY2008 compared with the previous year, it is an important year for investments to prepare for accomplishing the challenge goals of FY 2010.” About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed Sanyo Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. The company also carries Standard & Poor's 'BB-' long-term corporate credit rating. Both ratings still apply as of May 23, 2008. UNY CO: Fitch Cuts Foreign and Local IDRs on Weak Performance ------------------------------------------------------------- Fitch Ratings downgraded Uny Co., Ltd's ratings and simultaneously withdrawn them. Fitch will no longer provide ratings or analytical coverage on this issuer. The ratings are: -- Long-term foreign and local currency Issuer Default Ratings: downgraded to 'BB+' from 'BBB-' and simultaneously withdrawn; -- Short term foreign and local currency IDRs: downgraded to 'B' from 'F3' and simultaneously withdrawn; and, -- Senior unsecured debt rating: downgraded to 'BB+' from 'BBB-' and simultaneously withdrawn. The rating Outlook was changed to Negative in June 2007 due to Uny's gradually weakening consolidated financial leverage and operating performance in its convenience store operations, which is weaker than its peers' amid the harsher business environment. The rating downgrades are primarily driven by the continued weakening of Uny's operating performance and financial profile, especially its financial leverage. In FYE08, lagging performances of Circle K Sunkus convenience stores, Sagami speciality store-s, and UCS, a finance company, resulted in weak consolidated results for the company. Its non-financial-service leverage, as measured by adjusted net debt/EBITDAR (excluding UCS), continued to weaken to 5.4x from 5.1x last year and 4.8x two years earlier. Fitch's concern that the deterioration in credit metrics may not be temporary, given the uncertain outlook for the Japanese retail sector, has resulted in the rating downgrade. The agency considers that a leverage ratio below 5x is more appropriate for its previous rating of 'BBB-'. Uny is one of Japan's largest retailers with a dominant position in the Chukyo area. Uny operates general merchandise stores, supermarkets, convenience stores and specialty retail shops, mainly in Japan. * JAPAN: Economy Remained Resilient to U.S. Slowdown, IMF Says -------------------------------------------------------------- The Japanese economy has remained resilient to the slowdown in the United States and global market turmoil, the International Monetary Fund said. First quarter GDP growth was robust, led by strong exports and steady household spending. Nevertheless, the outlook is more mixed, with growth expected to moderate amid uncertainties regarding the global economy and the deteriorating terms of trade. In these circumstances, the IMF agrees with the authorities that policies should remain accommodative and with continued efforts to strengthen financial stability. Outlook The IMF shares the authorities' view that Japan's growth is likely to moderate in the near-term. Baseline: IMF projects GDP growth to moderate to around 1-1/2 percent in 2008 and 2009, somewhat below potential. Private consumption and business investment should slow, offset in part by a turnaround in construction and robust exports to non-U.S. destinations. Headline CPI inflation is expected to rise to around 1 percent in 2008 and 2009, reflecting higher commodity and fuel prices, but core inflation will likely remain low. Risks: Compared to several months ago, the risks to the outlook appear more evenly balanced, as concerns over a global credit squeeze have eased and growth outside the United States has so far held firm. However, the outlook is still subject to considerable uncertainty surrounding the depth of the U.S. slowdown and future developments in commodity prices and financial conditions. Domestically, the weak SME sector is a concern, while the deterioration in the terms of trade is weighing on corporate profits and household incomes. On the other hand, growth in exports to emerging markets could continue to surprise on the upside. Macroeconomic and Financial Policies The current policy mix is broadly appropriate for the near-term. Fiscal policy is governed by the already high debt burden and the growing demands associated with an aging population. Given the uncertainties in the outlook, monetary policy should remain accommodative and interest rates held steady until concerns over domestic activity and the global environment have eased. Financial policies should guard against spillovers from the global market turmoil and risks from a slowing economy. According to the IMF, Japan's fiscal policy is rightly focused on reducing the high level of public debt. Over the past several years, the IMF says buoyant tax revenue and public investment cuts have led to a large reduction in the general government primary deficit (excluding social security)-to an estimated 3/4 percent of GDP in FY2007. This improvement is welcome, but the revised medium-term fiscal plan fails to build on the progress as it targets a broadly unchanged deficit for FY2008 and no more than primary balance (excluding social security) by FY2011. This would imply that the net public debt ratio would remain high and begin to rise thereafter in the absence of a sharp fiscal adjustment. For this reason, the IMF recommends a faster pace of adjustment supported by comprehensive tax reform. Near-term fiscal stance: The FY2008 budget targets a broadly neutral stance with a slight increase in total expenditures and lower tax buoyancy. Notwithstanding the uncertain growth outlook, the IMF believes a somewhat more ambitious budget aimed at reducing the primary deficit would have been desirable. In the event that revenues fall short of the budget target, it would be prudent to constrain spending (and avoid a supplementary budget) in order to prevent undermining fiscal consolidation. Pace of consolidation over the medium-term: Starting in FY2009, the IMF recommends an adjustment of the primary balance (excluding social security) of 3/4 percent of GDP per year, or about 1/2 percent of GDP more than in the authorities' reference path. If maintained, the IMF says this is projected to lead to a primary surplus of 1-1/2 percent of GDP in FY2011 and put the public net debt ratio firmly on a downward path. Faster consolidation would take advantage of the current low interest rates and help dispel concerns over the pension system that may be weighing on consumption. Fiscal reforms: With expenditure cuts nearing their limit, the focus of fiscal consolidation should shift towards tax measures, including raising the consumption tax and broadening the income tax base. These actions should be part of a comprehensive reform of the tax system that aims to improve efficiency and secure fiscal sustainability. The proposal to discontinue the earmarking of tax revenues to road construction beginning in FY2009 may provide an opportunity to discuss broader tax reform options. Also, additional revenues are needed to finance the government's plan to raise its funding share for the basic national pension program from one-third to one-half starting in FY2009. Strengthening social security: The pension system review planned next year should lead to reforms that support medium-term fiscal sustainability. At the same time, reforms will need to address the challenges created by rapid aging and concerns over increasing inequality in pension benefits between generations, as well as between those covered and not covered by the system. Given the uncertainties surrounding the outlook, the IMF agrees with the BoJ on its flexible "wait and see" approach to the conduct of policy. Background: Monetary conditions remain accommodative with headline inflation now above the policy rate. Despite the increase in commodity and fuel prices, wage pressures and core inflation (excluding food and fuel) remain weak and inflation expectations seem to be contained. Conduct of monetary policy: Under IMF's baseline scenario, growth is expected to moderate to somewhat below potential while headline CPI inflation would stabilize at around 1 percent. At the same time, there are no indications of growing imbalances under the "second perspective" and the risks that low interest rates in Japan are fueling carry trades and complicating monetary management elsewhere have diminished. Given the uncertain outlook, the IMF agrees that the policy rate should be maintained at the current level until concerns over domestic activity and the external environment have eased. The IMF team has several observations relating to communications under the monetary framework and ways to strengthen the BoJ's role in helping to secure financial stability. Communications under the monetary framework: With inflation now moving towards the center of the "understanding of medium- to long-term price stability" and pressures on global commodity prices, there are new challenges to guiding inflation expectations. The greater discussion of the risks to the outlook and of the views of the Policy Board Members on growth and CPI inflation in the BoJ's April "Outlook for Economic Activity and Prices," should be useful in enhancing public understanding of the outlook and conduct of monetary policy. Moreover, the greater emphasis on the 1 percent median of the "understanding of price stability" could help firms and households adjust to the new price environment and anchor inflation expectations. Securing financial stability: The BoJ's flexible approach to liquidity operations has helped stabilize money market conditions and ensure market stability. Nonetheless, it may be useful to strengthen the BoJ's monitoring of the overall financial system by expanding the sharing of information between the BoJ and the FSA on activities of systemically important financial institutions outside the banking system. The market-determined exchange rate policy remains appropriate. Notwithstanding the appreciation since mid-2007, the yen in real effective terms remains below its level at the beginning of the expansion in 2002. The IMF said it continues to support the official policy that the yen exchange rate should be market determined with intervention only justified to counter disruptive exchange rate movements. A sharper-than-expected slowdown and rising global inflation are also potential scenarios to consider, said the IMF. A sharp slowdown: Under an alternative scenario where the economy slows substantially, the scope for countercyclical fiscal policy would be constrained by the need to bring down the high debt ratio. Moreover, the unsuccessful experience with the 1990s fiscal stimulus casts doubt on the effectiveness of boosting public spending. For monetary policy, in addition to reducing interest rates, the BoJ has a wide arsenal to meet exceptional liquidity needs and maintain market stability. Global monetary tightening: Rising global inflation that triggers a tightening international response could complicate monetary policy in Japan. In this case, the BoJ may need to consider normalizing interest rates at a faster pace than might be warranted by domestic conditions alone. Financial Policies to Safeguard Stability The IMF relates that the impact of the global market turmoil on Japan's financial system has so far been manageable, but risks remain. Japanese banks' reported subprime-related losses have increased but remain well within their capital and operating earnings. However, the financial system still faces risks from the global market turmoil and a slowing domestic economy. The reverberations through various markets in Japan from the financial turbulence have highlighted how closely integrated global financial markets have become. Financial policies are appropriately focused on guarding against spillovers from the global market turmoil. The authorities have taken a number of useful steps, including disclosing banks' subprime holdings and providing exceptional liquidity, which have helped support market confidence. Looking ahead, the IMF would highlight these policy priorities—consistent with those recommended by the Financial Stability Forum—for further strengthening the financial system. * Greater disclosure for structured holdings: Following subprime write-downs, attention has shifted to Japanese banks' holdings of other structured credits where losses so far have been more limited. Greater disclosure of structured holdings, including on the underlying assets and hedging coverage, and of off-balance sheet vehicles would strengthen market confidence and discipline. Consideration could also be given to extending enhanced disclosure to nonbanks, such as insurers, with the understanding that the accounting and regulatory treatments may differ from banks. * Adequacy of capital cushions: Japanese major banks should be encouraged to continue efforts to improve the quality of their "core" capital as their Tier 1 capital ratios remain below those of other leading banks. For regional banks, in light of their expansion into securities and overseas investments, consideration could be given to raising the minimum capital requirement for domestic banks above the current 4 percent level (compared to the 8 percent required for internationally active banks under the Basel framework). This would not only be more in line with current trends (most regional banks are already above 8 percent), but also give the supervisor more flexibility in dealing with distressed banks at an earlier stage. Gradually raising the minimum capital requirement would give banks sufficient time to adjust. * Strengthening the market for securitization: Although securitization has grow steadily since the late 1990s, the market remains small with the volume of secondary trading limited. Greater disclosure by the originator on the underlying assets, such as for SME-ABSs, and the creation of reliable market benchmarks (e.g., for commercial real estate) would improve price discovery and liquidity in the secondary market. A slowing domestic economy also presents risks. Widening credit spreads for low-rated companies and rising corporate bankruptcies, led by SMEs, suggest the need for vigilance against credit risk, particularly for regional banks with their greater domestic exposure and higher levels of nonperforming loans (NPLs). Strengthening risk management: Supervisors will need to ensure that banks, particularly regional banks with exposure to weak SMEs, have appropriately classified and provisioned against problem loans. At the same time, the subprime crisis has created an opportunity for Japanese banks to expand into overseas markets to fill in lending space created by European and U.S. banks. Having in place robust credit risk assessment systems to manage overseas portfolios will help Japanese banks to take advantage of new lending opportunities while guarding against possible risks. Reducing market risk: Japanese banks' large equity holdings expose the banking system to considerable market risk and exacerbate the procyclicality of capital ratios. Banks should be encouraged to continue efforts to reduce their stockholdings as part of an overall strategy for improving their risk-return profile. This reduction will be promoted by the increase in capital charge for existing equity holdings to the same level as that for new equity purchases, which is set for 2014. Over the longer-term, the IMF says further reforms are needed to improve financial intermediation and promote stability. These would include: encouraging further bank consolidation to boost core profitability; managing the privatization of Japan Post to ensure a level playing field for all institutions, and promoting a broader sharing of credit information to strengthen risk pricing and financial stability. Further development of the capital markets would also help enhance Tokyo's appeal as an international financial center. Structural Reforms to Enhance Potential Growth The IMF believes that it would be highly desirable to reinvigorate structural reforms. In the near-term, reforms would support growth by providing a boost to investment and confidence. Over the longer-run, broader reforms would raise potential growth and help address widening economic dualities arising from globalization. There has been some progress in implementing initiatives under the IMF's Multilateral Consultation, but more needs to be done. The priorities remain to enhance labor market flexibility and promote competition through further deregulation and market opening. Enhancing labor market flexibility: Labor utilization would improve with more flexible work arrangements, easier rules for dismissal, greater portability of pensions, and more balanced employment conditions for regular and temporary workers. A more liberal and bolder approach to immigration policy would also address special labor needs and shortages. In this regard, the IMF looks forward to the recommendations of the government panel for accepting more skilled professionals into Japan. Promoting competition: Further deregulation and market opening, particularly in agriculture, retail, and services, would give a boost to productivity and make Japan a more attractive destination for foreign investment. Applying successful reforms in the Special Zones on a nationwide basis and opening further "government-driven" markets to the private sector could build support for deeper reforms. Structural reforms would also support an orderly adjustment in global imbalances and contribute to external stability. Japan's current account surplus is expected to narrow over the medium- term, as population aging reduces household savings and pushes firms to substitute capital for labor. This adjustment would be facilitated by far-reaching reforms that raise labor participation rates, enhance productivity, and increase the return on capital. It would also likely be associated with a strengthening of the yen over the medium-term and contribute to an orderly reduction of global imbalances. Conclusion The IMF states that Japan faces significant economic policy challenges over the medium-term. Stabilizing the public finances, managing the return to more normal monetary conditions, strengthening the financial sector, and boosting productivity through labor reforms and deregulation would lay the foundation for a sustained expansion and allow Japan to benefit more fully from its close integration with the global economy. The IMF encourages the government to spare no efforts in helping to create a more resilient, competitive, and dynamic economy whose benefits would be shared with the rest of the world. ========= K O R E A ========= BHK INC: Posts KRW2.6 Billion Pretax Loss for First Quarter 2008 ---------------------------------------------------------------- BHK Inc. posted a wider first quarter pretax loss with lower sales, Thomson Financial reports. According to the report, the company posted a pretax loss of KRW2.6 billion for the three months to end-March compared with a loss of KRW1.3 billion in the year-ago period. Total sales declined to KRW1.2 billion from KRW2.4 billion last year, the report notes. Seoul, Korea-based BHK Inc. is engaged in international trading. The company's products consist of liquid crystal display televisions (LCD-TV's), electronic products, bed sheets, pillows, pillowcases, curtains and clothing. The company sells its bedding products in the department stores under the brand name Pierre Cardin. Currently, the company is also in the development stage for launching of a new business segment, which specializes in biomedical products, namely MyoCell, for heart muscle regeneration. * * * The Troubled Company Reporter-Asia Pacific reported on Sept. 14, 2007, that the company has a shareholders' equity deficit of US$17.38 million on total assets of US$24.36 million. HYUNDAI: Inks Infotainment Systems Dev't Deal With Microsoft ------------------------------------------------------------ Hyundai-Kia Automotive Group and Microsoft Corp. entered into a long-term agreement to co-develop the next generation of in-car infotainment systems. Bill Gates, chairman of Microsoft and Euisun Chung, president of HKAG were present as Martin Thall, general manager of Microsoft's Automotive Business Unit, and Hyun Soon Lee, president and chief technology officer of HKAG, signed the agreement in Seoul. Together, Microsoft and HKAG will deliver new and innovative solutions based on the Microsoft Auto software platform, bringing the future of in-car technology to Hyundai-Kia drivers worldwide. "These new systems will redefine consumer experiences in the car," Thall said. "Since the spring of 2006, HKAG and Microsoft have been sharing their vision for the future of in-car technology. We're now aligned to develop the next generation of in-car infotainment systems." "HKAG's strategic vision is to become a global leader in automotive and information technology convergence" Chung said, "the partnership with Microsoft will form the foundation for achieving that vision." The first product, a next-generation infotainment system that provides voice-controlled connectivity between mobile devices, will be introduced in the North American market in 2010. It will further apply to Asian and European markets, and expand into multimedia and navigation devices. These easy-to-use infotainment systems will allow consumers to enjoy music in various digital formats. The next-generation infotainment systems are comparable to mini- PCs. Even after product launch, new functions can be added or upgraded in the form of software program updates, an innovation to existing in-car multimedia technology. The Hyundai-Kia Automotive Group's adoption of the Microsoft Auto software platform increases Microsoft's presence in the Asian car market and enhances the global automotive business. The engineering and marketing teams of Microsoft's Automotive Business Unit in Redmond, Wash., will be working directly with counterparts at HKAG in Seoul to support this goal. Systems powered by the current version of Microsoft Auto are available in Fiat Auto Group vehicles in Europe and South America and Ford Motor Co. vehicles in North America. In a related announcement, Microsoft and Hyundai-Kia, along with the Institute for Information Technology Advancement (IITA), signed a memorandum of understanding (MOU) to co-establish an automotive IT innovation center with the goal of promoting innovation and opportunities for Korean software and device vendors in the global market. Hyundai-Kia will invest $166 million over the next five years to bring IT technology advancements into the car and to develop new in-car services. Hyundai-Kia will invest US$166 million over the next five years to bring IT technology advancements into the car and to develop new in-car services. Microsoft Automotive Business Unit The Microsoft Automotive Business Unit partners with the auto industry by providing innovative technologies and flexible software platforms to help deliver simple, more reliable and cost-effective in-car infotainment systems. Developed closely with automakers and automotive suppliers, the award-winning Microsoft Auto and Windows Automotive software platforms connect drivers with a wide range of devices, services and technology while on the go, including hands-free communication, mobile device integration, customized navigation and high-fidelity digital entertainment. About Hyundai Motor Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/-- has been selling cars in the US since 1986, but it only started selling its heavy trucks stateside in 1998. Hyundai produces 14 models of cars, SUVs, and minivans, as well as trucks, buses, and other commercial vehicles. The company reestablished itself as South Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors (since reduced to about 43%). Hyundai's models for the North American market include the Accent and Sonata; models sold elsewhere include the GRD and Equus. The company also manufactures machine tools for factory automation and material- handling equipment. The Troubled Company Reporter-Asia Pacific reported that the Hyundai Automotive Group is facing its deepest crisis since chairman Chung Mong-koo took over in 1999, with problems like the falling United States dollar, high oil prices and union demands aggravated by a sweeping criminal investigation regarding the carmaker's alleged creation of slush funds that were used by at least two lobbyists to bribe government officials for business favors, including having KRW55 billion of Hyundai's bad debts written off. Chairman Chung was indicted early in May 2006 for fraud charges. Some of the group's official business has been on hold since the probe on the slush fund started and several top executives were summoned for questioning. On Feb. 5, 2007, a South Korean court handed down the sentence to Mr. Chung for illegally raising US$110 million in slush funds and bribing government officials. Mr. Chung was released on bond and continues to run the auto conglomerate. ==================== N E W Z E A L A N D ==================== FAR NORTH ENGINEERING: Subject to CIR's Wind-Up Petition -------------------------------------------------------- On March 13, 2008, the Commissioner of Inland Revenue filed a petition to have Far North Engineering Ltd.'s operations wound up. The petition will be heard before the High Court of Whangarei today, May 26, 2008, at 10:00 a.m. The CIR's solicitor is: M. B. Smith Marsden Woods Inskip & Smith 122 Bank Street PO Box 146, Whangarei New Zealand FORTE INTERNATIONAL: Fixes June 13 as Last Day to File Claims ------------------------------------------------------------- Forte International Ltd. requires its creditors to file their proofs of debt by June 13, 2008, to be included in the company's dividend distribution. The company's liquidators are: Peri Micaela Finnigan Victoria Toon McDonald Vague PO Box 6092, Wellesley Street Post Office Auckland New Zealand Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Web site: http://www.mvp.co.nz IAMBE PROPERTIES: Fixes May 30 as Last Day to File Claims --------------------------------------------------------- The creditors of Iambe Properties Ltd. are required to file their proofs of debt by May 30, 2008, to be included in the company's dividend distribution. The company's liquidators are: Arron Leslie Heath Michael Lamacraft c/o Meltzer Mason Heath Chartered Accountants PO Box 6302, Wellesley Street Auckland 1141 New Zealand Telephone:(09) 357 6150 Facsimile:(09) 357 6152 LONE ARROW: Fixes June 2 as Last Day to File Claims --------------------------------------------------- Lone Arrow Stud Ltd. requires its creditors to file their proofs of debt by June 2, 2008, to be included in the company's dividend distribution. The company's liquidator is: Shamal Kumar Waterstone Insolvency PO Box 352, Auckland New Zealand Freephone: 0800CLOSED Facsimile: 0800FAXWSI e-mail: enquiries@waterstone.co.nz LUMBERJACK SAWMILLS: Wind-Up Petition Hearing Set for Today ----------------------------------------------------------- A petition to have Lumberjack Sawmills Ltd.'s operations wound up will be heard before the High Court of Whangarei today, May 26, 2008, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition on March 27, 2008. The CIR's solicitor is: M. B. Smith Marsden Woods Inskip & Smith 122 Bank Street PO Box 146, Whangarei New Zealand NUGGET POINT: Wind-Up Petition Hearing Set for June 3 ----------------------------------------------------- A petition to have Nugget Point Ltd.'s operations wound up will be heard before the High Court of Hamilton on June 3, 2008, at 10:45 a.m. Choice Hotels Australasia Pty Limited filed the petition on April 4, 2008. Choice Hotels' solicitor is: P. D. Barrett c/o Luke, Cunningham & Clere, Solicitors 89 The Terrace, Level 10 Wellington New Zealand NVITING KITCHENS: Commences Liquidation Proceedings --------------------------------------------------- Nviting Kitchens and Joinery Ltd. commenced liquidation proceedings on April 22, 2008. Iain Andrew Nellies and Wayne John Deuchrass were appointed as liquidators. The Liquidators can be reached at: Iain Andrew Nellies Wayne John Deuchrass c/o Insolvency Management Limited Level 1, 148 Victoria Street PO Box 13401, Christchurch New Zealand PLYMOUTH 22: Appoints Terence Charles Webb Bastion as Liquidator ---------------------------------------------------------------- The shareholders of Plymouth 22 West Ltd., on May 1, 2008, appointed Terence Charles Webb Bastion the company's liquidator. Only creditors who were able to file their proofs of debt by May 19, 2008, will be included in the company's dividend distribution. The Liquidator can be reached at: Terence Charles Webb Bastion KBC House 272 Karori Road, Karori Wellington New Zealand Telephone:(04) 476 5775 Facsimile:(04) 476 5778 SKY BLUE: Fixes May 30 as Last Day to File Claims ------------------------------------------------- The creditors of Sky Blue Enterprises Ltd. are required to file their proofs of debt by May 30, 2008, to be included in the company's dividend distribution. The company's liquidator is: Douglas Kim Fisher Private Bag MBE M215, Auckland New Zealand Telephone:(09) 630 0491 Facsimile:(09) 638 6283 TT WOOD PRODUCTS: Faces Allied Pine's Wind-Up Petition ------------------------------------------------------ On April 8, 2008, Allied Pine Limited filed a petition to have TT Wood Products Ltd.'s operations wound up. The petition will be heard before the High Court of Napier on May 29, 2008, at 10:00 a.m. Allied Pine's solicitor is: Malcolm David Whitlock Whitlock & Co. c/o Baycorp House, Level 2 15 Hopetoun Street Auckland New Zealand ===================== P H I L I P P I N E S ===================== LIBERTY TELECOMS: Wants Rehabilitation to Continue -------------------------------------------------- Liberty Telecoms Holdings Inc. asked a Makati regional trial court to reject a creditor’s motion to terminate its rehabilitation and have it liquidated, saying it goes against the purpose of corporate rehabilitation, Anna Barbara L. Lorenzo of Business World reports. According to the report, creditor Rizal Commercial Banking Corp. filed the motion arguing that the company has lost the opportunity to revive its operations. In 2005, Business World says Liberty Telecoms promised the court that 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. Regulators however asked the court to reset the hearing to June, the report says. Business World relates that Liberty Telecoms owes its creditors Php1.7 billion while RCBC holds a Php33 million claim. Meanwhile, the Business Mirror reported on May 22, 2008, that Commissioner Ruel Canobas of the NTC and three other department heads were subpoenaed by a Makati court in connection with RCBC's motion. In response to Business Mirror's report, the telco said in a May 22 regulatory filing with the Philippine Stock Exchange that it “has yet to receive any notice.” About Liberty Telecoms Manila-based Liberty Telecoms Holdings Inc. (LIB) was incorporated on January 14, 1994, and designed primarily to be the holding company for Liberty Broadcasting Network Inc. (LBNI) 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. At present, the management of LIB is looking for a prospective investor who will invest resources to bring back the company to its normal operations and earn money with its planned services of the affiliated company, LBNI. =========== T A I W A N =========== ASE TEST: Intends to Delist From NASDAQ Market on ASE Buyout ------------------------------------------------------------ ASE Test Limited intends to delist its ordinary shares from The NASDAQ Global Market in connection with the proposed ''going private'' acquisition by Advanced Semiconductor Engineering, Inc. ("ASE Inc.") of the outstanding ordinary shares of ASE Test that ASE Inc. does not directly or indirectly own, by way of a scheme of arrangement under the Companies Act, Chapter 50 of Singapore. The Scheme was approved by the requisite majority of unaffiliated shareholders of ASE Test at the May 6, 2008, shareholder meeting convened by an Order of the High Court of the Republic of Singapore. The Court has issued an order sanctioning the Scheme. The Scheme is expected to become effective on May 30, and thereafter ASE Test will become an indirect wholly owned subsidiary of ASE Inc. In accordance with the rules of the Securities and Exchange Commission (the "SEC") and NASDAQ, ASE Test has provided written notice to NASDAQ of its intent to delist and expects to file a Form 25 with the SEC to effect the delisting on or about June 2, 2008. The delisting of ASE Test's ordinary shares will be effective ten days after the filing of the Form 25. ASE Test has not arranged for the listing or quotation of its ordinary shares on another national securities exchange or for the quotation of its ordinary shares in a quotation medium. About Advanced Semiconductor Advanced Semiconductor Engineering Inc. -- http://www.asetwn.com.tw/-- is principally engaged in the provision of packaging and testing services of semiconductors. The Company's products and services include dual-in-line packages; quad packages, such as plastic leaded chip carriers (PLCCs) and quad flat packages (QFPs); ball-grid arrays (BGAs), such as flip chip BGAs; chip scale packages (CSPs); wafer bumping service, and green packaging. The Company distributes its products in the domestic market and to overseas markets, including the rest of Asia, the Americas and Europe. About ASE Test ASE Test -- http://www.asetest.com-- is one of the world's largest independent providers of semiconductor testing services. It provides customers with a complete range of semiconductor testing services, including front-end engineering test, wafer probe, final test and other test-related services. The ordinary shares of ASE Test are quoted for trading on The NASDAQ Global Market under the symbol "ASTSF". ASE Test's Taiwan Depository Shares, which represent its ordinary shares, are listed for trading on the Taiwan Stock Exchange under the symbol "9101". ********* 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. Rousel Elaine C. Tumanda, Valerie C. Udtuhan, Marie Therese V. Profetana, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2008. 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 ***