/raid1/www/Hosts/bankrupt/TCRAP_Public/080627.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, June 27, 2008, Vol. 11, No. 127
Headlines
A U S T R A L I A
ABC LEARNING: Completes US$700 Million Sale of U.S. Business
ACMIL PTY : Liquidator Presents Wind-Up Report
BABCOCK & BROWN: Shares Rise on Plan to Reduce Debt
BEVERLEY ANN: Liquidator Presents Wind-Up Report
BILL EXPRESS: Risks Being Put Under Administration on Huge Debt
BONNYVALE PASTORAL: Final Meeting Slated for June 29
CENTRO PROPERTIES: Won't Make Payments on June 30 Note Coupon
DALLBROOK PROPRIETARY: Appoints Lear as Liquidator
DIRECT SECURITY: Appoints Gregory Jay Parker as Liquidator
GLENVALE SECURITIES: Placed Under Voluntary Liquidation
GOODYEAR TIRE: To Close Australian Tire Plant to Cut Mfg Cost
MCGEE INVESTMENT: Liquidators Present Wind-Up Report
OCTAVIAR LIMITED: Continues Talks with Lenders on AU$1 Bil. Debt
OPTISTOR (AUSTRALIA): Member's Final Meeting Set for Today
ST GEORGE: ACA Wants Proposed Merger With Wespac Rejected
VISION ONE: Placed Under Voluntary Liquidation
C H I N A
SHIMAO PROPERTY: To Slow Down in Acquiring Lands in 2H 2008
XINHUA FINANCE: To Sell Mergent and Kinetic to Carousel Capital
XINHUA FINANCE: XFMedia Hires Richard Young for Expansion Plans
H O N G K O N G
BLOOM TIDE: Commences Liquidation Proceedings
CKK INT'L: Members' Final Meeting Set on July 23
DEFOND SALES: Members' Final Meeting Set on July 21
DEFOND SWITCH: Members' Final Meeting Set on July 21
HENG JU: Members' Final Meeting Set on July 21
KEE MUN: Members' Final Meeting Set on July 25
PUI YEN: Members' Meeting Set on July 28
SURPLUS EXPRESS: Members' Final Meeting Set on July 22
VIRGIN HOLDINGS: Members' Final Meeting Set on July 21
VIRGIN RETAIL: Members' Final Meeting Set on July 21
ZENESIS SPC: Fitch Downgrades AAA Notes Rating to BB+
ZENESIS SPC: Fitch Slashes Two Notes Ratings to Low-B
I N D I A
BHARTI AIRTEL: Plans Alternative Acquisition Deal
JEYPORE SUGAR: Board to Consider FY 2008 Results on June 30
M/S. FORTIS: RBI Cancels Certificate of Registration
STARCHIK SPECIALTIES: Board Approves Capital Reduction
* S&P, CRISIL: Inflation over 8.5% Could Slow India's GDP Growth
I N D O N E S I A
ANEKA TAMBANG: Mining Deal with BHP Receives Backing from Lufti
PT SUMBER: S&P Affirms 'B-' Rating with Negative Outlook
* INDONESIA: Registers 6.32 Percent Growth in 2007 Full-Year
J A P A N
AIFUL CORP: Shares Hit Record Low on Lehman's Insolvency Report
NANTO BANK: Appoints Hiromune Nishiguchi as Board Chairman
* JAPAN: Moody's Says Life Insurers' Bond Portfolios Changing
M A L A Y S I A
CIMB BANK: S&P Holds “C+” Fund'l Strength Local Currency Rating
IDAMAN UNGGUL: Fairfax Interested to Acquire Stake in Tahan
TENGGARA OIL: SC Okays Proposed Exemptions But Gives Conditions
N E W Z E A L A N D
AUSTRAL PACIFIC: Completes NZ$5.61 Mil. Common Shares Placement
COAST TO COAST: Commences Liquidation Proceedings
ELLIOTT CONSULTING: Commences Liquidation Proceedings
DORCHESTER PACIFIC: Unit to Defer Repayment Plan
FAST MEDIAFLEX: Liquidation Hearing Scheduled Today
HARRIS TRANZ: Commences Liquidation Proceedings
PANMURE OFFICE: Proofs of Claim Due July 4
ROOF SOLUTIONS: Commences Liquidation Proceedings
STRATEGIC FINANCE: Business Up For Sale
* NEW ZEALAND: Mar. 2008 Qtrly Current Account Deficit Increases
P H I L I P P I N E S
* PHILIPPINES: To Borrow PHP85BB in 3rd Qtr. from Local Market
X X X X X X X X
* Moody's has Positive Outlook for Asian Palm-Oil Industry
* S&P: Lowers Ratings on 20 Asia-Pacific Synthetic CDOs
* Large Companies with Insolvent Balance Sheets
- - - - -
=================
A U S T R A L I A
=================
ABC LEARNING: Completes US$700 Million Sale of U.S. Business
------------------------------------------------------------
A.B.C. Learning Centres Limited said in a regulatory filing that
it completed sale of 60 percent of its U.S. Business to Morgan
Stanley Private Equity and has received the cash proceeds from
the sale.
According to the company, the transaction values 100% of the
U.S. business at US$700 million and ABC holds 40% of the U.S.
Joint Venture equity as well as a further US$20 million of
preferred equity.
The U.S. Joint Venture has successfully raised US$215 million of
senior debt, consisting of a US$175 million term loan, a
US$40 million unfunded revolver and a US$55 million mezzanine
facility.
ABC may receive a further US$30 million through an “earn out”
payment in June 2009. In addition, ABC retains a call option on
the sold portion of the U.S. business that can be exercised at
the end of the third year of the Joint Venture on the same terms
as previously disclosed.
Eddy Groves, CEO of ABC, said, “The sale of a majority stake in
our U.S. business enables us to significantly de-leveraged our
business while maintaining upside potential in the attractive
U.S. Market with Morgan Stanley Private Equity as our Joint
Venture partner.”
As reported in the Troubled Company Reporter – Asia Pacific on
April 23, 2008, A.B.C. Learning Centres Limited has signed a
definitive agreement with Morgan Stanley Private Equity for the
sale of a 60% interest in its US business, Learning Care Group
Inc., in a transaction that values 100% of the US business at
US$700 million.
The transaction will reduce ABC’s net debt by AU$485 million,
with an additional US$30 million payable shortly after June 30,
2009 by way of an earn-out. In addition to the net debt
reduction, ABC will retain US$185 million of ordinary equity and
US$20 million of preferred equity in the US joint venture. ABC
has a call option to buy back Morgan Stanley Private Equity’s
interest three years after closing.
ABC and Morgan Stanley Private Equity expect the transaction to
close within 90 days, following regulatory approval, funding of
the committed financing facility for the joint venture and
consent of ABC’s senior lenders.
Overview of Transaction
* Represents an Enterprise Value of US$700 million (AU$753
million), compared with US$775 million as per the
announcement on March 5, 2008, reflecting the deterioration
in credit markets since that time;
* Sale price implies a multiple of 12.7 times EBITDA of the
last twelve months, comparing favorably with recent
transactions in the sector;
* Will reduce net debt by AU$485 million, with an additional
US$30 million payable at the end of FY09 by way of an earn-
out;
* ABC retains a 40% interest in the US business and has a
call option to buy back Morgan Stanley Private Equity’s
interest three years after closing;
* Does not represent a trigger event which would allow the
holders of ABC’s existing reset convertible notes to
require an exchange of their notes
Funding of Joint Venture
The joint venture will be funded through an equity contribution
by the partners of US$432 million, comprising US$247 million
cash equity from Morgan Stanley Private Equity and a roll-over
of ABC’s 40% stake valued at US$185 million. In addition, ABC
will retain US$20 million of preferred equity.
In addition, Barclays Capital, the investment banking division
of Barclays Bank PLC, has committed to provide US$215 million of
first lien facilities comprised of a US$40 million revolving
facility and a US$175 million term loan. The revolving facility
will be undrawn at close.
Barclays Capital has also been engaged by ABC and Morgan Stanley
Private Equity to arrange up to US$55 million of potential
mezzanine financing which would reduce the partners’ equity
contribution and result in incremental cash proceeds to ABC of
approximately AU$24 million.
If the US joint venture is unsuccessful in securing mezzanine
financing with Barclays Capital, Morgan Stanley Private Equity
has the option to provide mezzanine financing of up to US$55
million resulting in incremental proceeds to ABC of
approximately AU$24 million as above, or decrease its equity
ownership in the joint venture to a minimum of 55% which would
result in a reduction in cash proceeds to ABC of approximately
AU$22 million (Under this scenario, Morgan Stanley Private
Equity would have an option to increase its stake back to 60%
within three years.)
No Convertible Notes will be Issued
After carefully considering a number of factors including
current market conditions and the prevailing ABC share price,
the Company has decided not to issue any convertible notes to
Morgan Stanley Private Equity.
Reduction of Net Debt
The reduction of ABC’s net debt resulting from this transaction
will amount to AU$485 million (compared to approximately AU$600
million assumed in the announcement on March 5, 2008). This
comprises Morgan Stanley Private Equity’s equity investment, the
new debt raised by the US joint venture and the transfer of
existing liabilities to the US joint venture. In addition, ABC
will retain US$20 million of preferred equity in the US joint
venture. The proceeds will increase by approximately AU$24
million (to AU$509 million) if the additional US$55 million of
mezzanine debt is raised by the joint venture. They could also
decrease by about AU$22 million (to AU$463 million) if no
mezzanine debt is raised and MSPE elects to let ABC increase its
stake to 45%.3 (Under this scenario, Morgan Stanley Private
Equity would have an option to increase its stake back to 60%
within three years.)
ABC has initiated a dialog with its senior lending banks whose
consent will be required prior to the closing of the
transaction.
ABC’s net debt balance is expected to be reduced further
following the sale of the UK Vouchers business and of ABC’s
property portfolios.
ABC has received expressions of interest in relation to its UK
Vouchers business and has opened a data room to selected
parties. The transaction is expected to close by end of FY08
and to generate a capital profit in excess of AU$100 million.
At the time of its 1H FY08 results presentation ABC announced
plans for the sale of property and related assets totaling
approximately AU$250 million. Since then, ABC has received
proceeds for the sale of approximately AU$40 million of the
AU$50 million Australia and New Zealand property portfolio and
US Property #1 (value of approximately AU$50 million) will be
transferred to the US business following the successful
completion of the joint venture with Morgan Stanley Private
Equity. ABC expects to sell the remaining property and related
assets of approximately AU$150-160 million in FY09.
ABC continues to be in compliance with all the financial
covenants under its existing banking facilities.
Partnership for Growth and Returns
This transaction represents an excellent opportunity for ABC to
realize significant value for its US business at an attractive
price, whilst retaining a material ongoing stake in an important
growth market. In addition, the transaction will significantly
reduce the Company’s net debt.
About ABC Learning
A.B.C. Learning Centres Limited (ASX: ABS) --
http://www.childcare.com.au/-- provides childcare services and
education. The company operates in Australia, New Zealand, the
United States and the United Kingdom. The company's
subsidiaries include A.B.C. Developmental Learning Centres Pty
Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier
Early Learning Centres Pty Ltd, A.B.C. Developmental Learning
Centres (NZ) Ltd., A.B.C. New Ideas Pty. Ltd., A.B.C. Land
Holdings (NZ) Limited and Child Care Centres Australia Ltd.
On September 25, 2006, the company acquired Hutchison Child Care
Services Ltd. On September 7, 2006, it acquired The Children's
Courtyard LLP. On December 18, 2006, it acquired Busy Bees
Group Ltd. On January 26, 2007, it acquired La Petite Holdings
Inc. On February 2, 2007, it acquired Forward Steps Holdings
Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In
September 2007, the company purchased the Nursery division
(Leapfrog Nurseries) from Nord Anglia Education PLC.
* * *
As reported by the Troubled Company Reporter-Asia Pacific, the
company's Sydney trading on Feb. 26, 2008, plunged 43% after a
slump in earnings raised concerns it may struggle to repay debt.
The drop to AU$2.14 triggered margin calls on stakes held by
some directors. Consequently, stock trading was halted as the
company entered talks on "indications of interest" for parts of
its business. More than 96% of the remaining 21.9 million ABC
Learning shares owned by directors, equivalent to 4.6% of stock
outstanding, are held in margin lending arrangements that may
result in forced sales.
ACMIL PTY : Liquidator Presents Wind-Up Report
----------------------------------------------
At the joint meeting of the members and creditors of ACMIL Pty
Ltd held May 28, 2008, Andrew H. J. Wily, the appointed
liquidator, presented an account showing the manner in which the
winding up has been conducted and the property of the company
disposed.
The liquidator can be reached at:
Andrew H. J. Wily
Armstrong Wily
Level 5, 75 Castlereagh Street
Sydney NSW 2000
Australia
BABCOCK & BROWN: Shares Rise on Plan to Reduce Debt
---------------------------------------------------
Babcock & Brown Ltd. gained in Sydney trading on news of the
company's plan to cut debt levels, Robert Fenner of Bloomberg
News reports.
According to Bloomberg, Babcock & Brown rose 5.2 percent after
the Australian newspaper said it may take on a cornerstone
investor to boost equity as bankers examine its borrowings.
Bloomberg says Babcock & Brown has slumped this year as
investors question the company's business model of piling on
debt to finance expansion.
As reported in the Troubled Company Reporter-Asia Pacific on
June 16, 2008, Babcock & Brown reconfirmed, following
commentaries in relation to its debt facility, that the market
capitalization clause in its corporate facility does not
constitute a default or breach of covenant.
Babcock & Brown's AU$2.8 billion three year evergreen facility
was reviewed, extended to 2011 and signed off by its banking
syndicate in April 2008.
The market capitalization clause, provides for the facility
banks to have the right to call for a review of their position
under the facility rather than any specified action. The
facility banks have not yet made a decision as to whether such a
review action is appropriate.
Babcock & Brown said it formally meets with its banks and will
update the market when it has further information. A decision
may take some time in line with normal banking syndicate
processes.
According to Babcock & Brown, if the banks call for a review it
would entail a four month consultation period with lenders
during which time the company would continue to operate as
normal with no impact on access to is corporate debt facility.
About Babcock & Brown Ltd
Headquartered in Sydney, Australia, Babcock & Brown Limited
(ASX:BNB) -- http://www.babcockbrown.com/-- is engaged in the
creation, syndication and management of investment products for
itself, as a principal, and its investor clients; management of
specialised listed and unlisted funds, and advising and
arranging leasing, project financing and structured finance
transactions. It has five segments: real estate, which engages
in principal investment and investment management activities in
the real estate sector; infrastructure, which engages in
financial advisory, principal finance and funds management
activities in the infrastructure and project finance sector;
corporate and structured finance, which is engaged in the
origination, structuring and participation in and management of
equity and debt investments, and operating leasing, which is
engaged in asset acquisition and syndication, and ongoing
management of portfolios of aircraft, railcars and semi-
conductor equipment. In October 2007, it acquired Bluewater.
In November 2007, it acquired Coinmach Service Corp.
* * *
As reported in the Troubled Company Reporter-Asia Pacific
on June 16, 2008, Standard & Poor's Ratings Services lowered its
ratings on Babcock & Brown International Pty Ltd. to 'BB+/Watch
Neg/B' from 'BBB/Watch Neg/A-3' following a continued rapid
slide in the share price of its listed parent Babcock & Brown
Ltd. The ratings remain on CreditWatch with negative
implications, where they were initially placed on June 12, 2008.
Babcock & Brown Comments
Commenting on Standard & Poor's rating action, Babcock & Brown
said the downgrade was not based on any information provided to
S&P by Babcock & Brown or the facility lenders. The change in
S&P rating, the company says, does not constitute a review event
or event of default, or otherwise entitle any lender to require
a prepayment of any financing facility with the Babcock & Brown
Group. The downgrade according to Babcock & Brown was
consistent with S&P's move to downgrade other financial related
stocks around the world.
BEVERLEY ANN: Liquidator Presents Wind-Up Report
------------------------------------------------
Alan Douglas Charles Pears, Beverley Ann Pty. Ltd.'s estate
liquidator, met with the company's members on June 19, 2008,
and provided them with property disposal and winding-up reports.
The liquidator can be reached at:
Alan Douglas Charles Pears
Pears & Co.
Chartered Accountants
Suite 3, 24 Ross Street
North Parramatta
Australia
BILL EXPRESS: Risks Being Put Under Administration on Huge Debt
---------------------------------------------------------------
Bill Express Ltd is facing more than AU$180 million in debts
amid claims and counterclaims of suspect deals and related-party
transactions at board level that resulted in cash allegedly
being siphoned off into private companies and bank accounts not
controlled by the company, Mark Hawthorne of The Age reports.
Ian Christiansen, the company's chief executive, denied that the
company's debt was in excess of AU$180 million.
The report relates that Australia and New Zealand Banking Group
Limited, one of the company's key creditors, has appointed a
team led by Ben Steinberg to investigate the financial situation
of Bill Express and its holding company, On Q, after both listed
companies have been suspended from trading since April, with no
announcement to shareholders or the market about the financial
position of either company.
In addition, the Age says Craig Crosby, of administrator PPB,
has been employed to assess the financial situation of Bill
Express on behalf of the board, and assist with an equity and
cash injection into the company by a new investor. Unless that
deal is successful, Bill Express and On Q face being placed in
administration, the report notes.
The Bill Express board has also established an electronic data
room and is seeking an investor to try to salvage the Australian
operations of the company, which has 14,000 point-of-sale
terminals at newsagents and shops across the country, the Age
says.
Bill Express Ltd. (ASX:BXP) -- http://www.billexpressltd.com/--
is engaged in the management and development of an electronic
distribution system for pre-paid products and services across in
excess of 14,000 locations around Australia, automated ordering,
delivery and inventory control for pre-paid services including
mobile, landline and Internet services. It also processes
payments for bills and services, including bills that are
presented for payment to its outlets across Australia. The
company has an in-store media, which is a network that promotes
Bill Express Limited's and other products at the point of sale
and in-store aisles.
BONNYVALE PASTORAL: Final Meeting Slated for June 29
----------------------------------------------------
Bonnyvale Pastoral Co. Pty Ltd will hold a final meeting for its
members at 10:00 a.m. on June 29, 2008, at 466 Crest Hill Road
in Mooliabeenee.
During the meeting, the company's members will consider the
following resolutions:
1. To receive and adopt the report of the liquidator's
act and dealings during the conduct of the winding up;
2. to receive and adopt Australian Securities and
Investments Commission Form 524 Accounts and Statement
by a Liquidator; and
3. to transact any other business which may properly be
brought forward at the meeting.
The company's liquidator is William Robert Mattingly.
CENTRO PROPERTIES: Won't Make Payments on June 30 Note Coupon
-------------------------------------------------------------
Centro Properties Group disclosed in a regulatory filing that in
May 2007, it raised US$500 million through the issue of
exchangeable notes. The coupon on the notes is payable half
yearly on June 30 and December 31. The coupon rate is 5.5% per
annum, of which 2% per annum accrues and is added to the
principal amount of the exchangeable notes. In relation to the
remaining 3.5% per annum, Centro has the right, at its sole
election, to either pay it in cash or elect not to make the
payment.
In the past, Centro said it elected to pay the notes in cash,
however, the company advises that, to conserve liquidity and
against a background of Centro declaring a nil distribution to
ordinary securityholders for the six months to June 30, 2008, it
has resolved not to make any payments for the June 30, 2008
coupon. As a result of electing this option, a “capital and
distribution stopper” will be triggered. This means that Centro
will be prohibited from making any distributions to ordinary
stapled securityholders until such time as the missed 3.5% per
annum payment amounting to US$8.75 million has been paid.
According to Centro, the non-payment of the cash component of
the coupon is not an event of default under the exchangeable
notes, any of Centro's financing facilities or those of Centro
Retail Trust or any of Centro's managed funds.
Shares Rise on Debt Cut Plan
Robert Fenner of Bloomberg News reports that Centro gained in
Sydney trading on reports it will cut debt levels.
According to Bloomberg, Centro rose 19 percent at 12:24 p.m. in
Sydney after the Sydney Morning Herald reported the company
plans to sell stakes in AU$1.15 billion (US$1.1 billion) of
shopping centers to cut debt.
Centro is seeking buyers for a 50 percent stake in its
Colonnades mall in South Australia state, Galleria and Halls
Head centers in Western Australia, and a 100 percent interest in
the Bankstown mall in Sydney, Bloomberg says citing the Herald.
The sale of the assets is being managed by Jones Lang LaSalle
Inc. and is contingent on Centro remaining as manager of the
properties, the newspaper said as quoted by Bloomberg.
Dividend Payment Cut
As reported in the Troubled Company Reporter-Asia Pacific on
June 23, 2008, Centro said it won't be paying a distribution to
ordinary security holders for the six months ended June 30,
2008.
While Centro expects to record an operating distributable profit
for the year, it has incurred significant non-operating
refinancing and adviser fees. In addition, Centro's financial
arrangements are such that it is not in a position to fund a
distribution.
Centro currently anticipates filing its annual report on
August 28, 2008.
About Centro Properties
Centro Properties Group (ASX:CNP)-- http://www.centro.com.au/--
is a retail investment organisation specialising in the
ownership, management and development of retail shopping
centres. Centro manages both listed and unlisted retail
property and has an extensive portfolio of shopping centres
across Australia, New Zealand and the United States. Centro has
funds under management of $24.9 billion.
Centro owes its creditors as much as AU$6.6 billion and its
deadline to repay these debts has been extended four times since
December 2007, when the company's market value plunged. The
recent deadline extension given to the Group is December 15,
2008.
* * *
The Troubled Company Reporter-Asia Pacific reported on Jan. 4,
2008, that Standard & Poor's Ratings Services lowered its issuer
credit, senior-unsecured debt and preferred stock ratings to
'CCC+' with negative implications reflecting the potential of
the group's assets to be sold in softening market conditions,
particularly in the U.S.
DALLBROOK PROPRIETARY: Appoints Lear as Liquidator
---------------------------------------------------
During a general meeting held on April 22, 2008, the members
of Dallbrook Proprietary Ltd resolved to voluntarily liquidate
the company's business.
Dennis Charles Lear was appointed as liquidator.
The Liquidator can be reached at:
Dennis Charles Lear
Suite 4, Level 27
363 George Street
Sydney NSW 2000
Australia
DIRECT SECURITY: Appoints Gregory Jay Parker as Liquidator
-----------------------------------------------------------
Direct Security Contractors Pty. Ltd.'s members agreed on
April 21, 2008, to voluntarily liquidate the company's business.
Gregory Jay Parker was appointed to facilitate the sale of its
assets.
The liquidator can be reached at:
G. J. Parker
Parker Insolvency
Level 5, 49 Market Street
Sydney NSW 2000
Australia
GLENVALE SECURITIES: Placed Under Voluntary Liquidation
-------------------------------------------------------
Glenvale Securities Pty. Ltd.'s members agreed on April 15,
2008, to voluntarily liquidate the company's business. Stephen
Humphrys was appointed to facilitate the sale of its assets.
GOODYEAR TIRE: To Close Australian Tire Plant to Cut Mfg Cost
-------------------------------------------------------------
The Goodyear Tire & Rubber Company said it plans to close its
Australian manufacturing facility as part of its strategy to
reduce high-cost manufacturing capacity globally and provide
cost effective high-value-added products that the market is
demanding.
This action will eliminate approximately 3 million units of
high-cost capacity and provide Goodyear with annual cost savings
of approximately US$35 million.
"This completes our commitment to reduce high-cost capacity by
about 25 million units and achieve annual cost savings of more
than US$150 million," said Goodyear Chairman and Chief Executive
Officer Robert J. Keegan. "Going forward, our efforts will be
focused on increasing production of high-value-added tires in
low-cost operations to support growth in these segments in Asia-
Pacific markets, including Australia and New Zealand."
South Pacific Tyres (SPT) will immediately initiate
communications with its 600 associates and union representatives
regarding the plan to close the plant in Somerton, Victoria by
Dec. 31, 2008.
"Goodyear and South Pacific Tyres remain committed to their
customers and a strong and ongoing product, retail and wholesale
presence in Australia," said SPT Chief Executive Officer Judith
Swales.
Total restructuring and accelerated depreciation charges for
this action are estimated to be approximately US$125 million
after tax, of which approximately US$85 million is for cash
charges. Goodyear anticipates recording charges of
approximately US$75 million after tax in the second quarter of
2008.
About South Pacific Tyres
Formed in 1987 as a joint venture, South Pacific Tyres has been
wholly owned by Goodyear since 2006. The leading tire maker and
marketer in Australia, it has more than 3,000 associates. Its
results have been consolidated with those of Goodyear’s Asia
Pacific region since 2004.
About Goodyear Tire & Rubber Company
Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE:GT) -- http://www.goodyear.com/-- is a manufacturer of
tires and rubber products, engaging in operations in most
regions of the world. As of June 25, 2008, Goodyear employs
about 70,000 people and manufactures its products in more than
60 facilities in 25 countries around the world.
* * *
As of June 26, 2008, Goodyear Tire & Rubber Company continues
to carry Moody's “Ba3” senior secured debt, senior unsecured
debt, probability of default and long term corporate family
ratings.
In addition, the company still carries Standard & Poor's “BB-”
long term local and foreign issuer credit ratings and Fitch's
“B+” senior unsecured debt rating.
MCGEE INVESTMENT: Liquidators Present Wind-Up Report
----------------------------------------------------
Peter Woods and Samantha Bennett, Mcgee Investment Co Pty.
Ltd.'s estate liquidators, met with the company's members on
May 30, 2008, and provided them with property disposal and
winding-up reports.
The liquidators can be reached at:
Peter Woods
Samantha Bennett
Peter Woods & Associates
86 Currajong Street
Parkes NSW 2870
Australia
OCTAVIAR LIMITED: Continues Talks with Lenders on AU$1 Bil. Debt
----------------------------------------------------------------
Octaviar Limited disclosed in a regulatory filing that it needs
to reach an accommodation with its large creditors so as to
align the obligations to those creditors with the realization of
the company's assets.
The company said it continues discussions with the large
creditors regarding such an accommodation.
Listed Notes
Octaviar said that the Public Trustee of Queensland (PTQ)is
seeking winding up orders against Octaviar Limited and three
subsidiaries in relation to unsecured notes and interest
totalling approximately AU$351 million.
The Octaviar companies deny that the monies currently due and
are opposing the winding up applications. At an initial court
hearing on June 20, 2008, the applications were transferred to
the Commercial Causes List of the Supreme Court of Queensland
and have been set down for hearing September 9 and 10, 2008.
Australian Taxation Office (ATO)
Octaviar recognized a liability of AU$52.5 million in its
financial accounts at December 31, 2007, regarding income tax
for the year ended June 30, 2007. No assessment has been
received from the ATO.
On June 19, 2008, the company received a statutory demand from
the ATO for approximately AU$56 million, being deemed unpaid
income tax due and approximately AU$4 million in general
interest charges.
Premium Income Fund (PIF)
In addition to the AU$50 million claimed under the Support
Mechanism, the Responsible entity for PIF has now claimed
damages against Octaviar Limited and an Octaviar subsidiary for
AU$147.5 million in relation to investments made by PIF. A
claim of this nature was noted as a possibility in the notes to
the financial statements at December 31, 2007.
OPI Pacific Finance Limited
Provisions was made in the financial statements of the Octaviar
Group at December 31, 2007, for an obligation of AU$246 million
to OPI Pacific Finance Limited under a Put Option. An initial
amount of AU$20 million was paid by Octaviar Limited in March
2008.
On June 19, 2008, OPI Pacific Limited advised of a damages claim
for approximately AU$270 million against both Octaviar Limited
and an Octaviar subsidiary which provides managements and other
services.
Unlisted Bonds
An Octaviar subsidiary issued AU$100 million in unlisted bonds
originally due to mature in 2011 and the Bondholders have
commenced legal action in relation to these unlisted bonds. The
hearing date was set for July 21, 2008.
The winding up applications subsequently brought by the PTQ have
triggered an event of default in relation to the unlisted bonds
and the company has agreed with the Bondholders that the
Bondholders now have the ability to make the bonds due and
payable. The litigation regarding additional guarantees that
the Bondholders assert they are entitled to received continues.
The hearing date of July 21, 2008, remains relevant for these
remaining matters.
National Australia Bank Limited (NAB)
The NAB demand for AU$40 million from Octaviar Limited pursuant
to a guarantee regarding the NAB advance to Octaviar's former
unit, Living and Leisure Australia Group, remains unsatisfied.
LLA have recently announced further developments in the Arctic
Capital proposal to recapitalize LLA and refinance its NAB debt.
The company has reached an in principle agreement with Arctic
Capital regarding the sale to Arctic Capital of the Octaviar
subsidiary which is the responsible entity of the LLA Trust.
That agreement is conditional on the release of the Octaviar
Limited guarantee to NAB.
About LLA
Living and Leisure Australia Group, formerly MFS Living and
Leisure Group, is a stapled group comprising MFS Living and
Leisure Trust (Trust), and MFS Living and Leisure Limited. The
Trust is managed by the Responsible Entity, MFS L&L Management
Limited. Living and Leisure Australia Group owns and operates
leisure businesses globally, including aquariums, ski field
leases and tree top walks. In July 2006, the company acquired
the Oceanis Group, an owner and operator of aquariums, and
Australian Alpine Enterprises Holdings Pty Ltd, an owner of ski
resorts.
About Octaviar Limited
Headquartered in Southport, Queensland, Australia, Octaviar
Limited (ASX:OCV) -- http://www.mfsgroup.com.au-- operates as
an Investment Management business with a portfolio of businesses
and assets, including: operating businesses in the leisure and
childcare sectors; real estate portfolio; 35% interest in the
Stella Group; operating businesses which hold AFSL licenses and
act as Responsible Entity for a number of Managed Investment
Schemes.
OPTISTOR (AUSTRALIA): Member's Final Meeting Set for Today
----------------------------------------------------------
Optistor (Australia) Pty Limited will hold a joint meeting for
its members at 10:30 a.m., today, June 27, 2008. During the
meeting, the company's liquidators, S. J. Hundy and E. M.
Senatore at SBR Insolvency + Reconstruction, will provide the
attendees with property disposal and winding-up reports.
The company's liquidators can be reached at:
S. J. Hundy
E. M. Senatore
SBR Insolvency + Reconstruction
Level 7, 28 University Avenue
Canberra ACT 2601
Australia
ST GEORGE: ACA Wants Proposed Merger With Wespac Rejected
---------------------------------------------------------
The Australian Consumers Association asked the Australian
Consumer and Competition Commission to reject the proposed
merger between St George Bank Limited and Westpac Banking
Corporation, Katherine Jimenez of The Australian reports.
According to the report, the ACA told the Commission that
previous bank mergers had resulted in branch closures, reduced
customer service and higher fees.
Citing need for additional action to improve competition in the
banking sector, the ACA said the St George-Westpac merger "is
likely to leave consumers worse off again."
As reported in the Troubled Company Reporter-Asia Pacific
on May 12, 2008, Westpac said in a media release that it is
in merger discussions with St George concerning an all-scrip
merger to create Australia's leading financial services company.
Westpac's proposed merger stated that:
* All Westpac and St.George brands, including Bank SA, and
branch/ATM networks would be retained. The intention is
that there will be no net reduction in branch or ATM
numbers. The focus will be on investing more in front-line
services;
* The combined 10 million customers would benefit from an
enhanced offering in terms of product range, expanded
distribution and financial strength while preserving their
relationships with employees, products, customer
touchpoints and branding; and
* Shareholders would own the premier AA rated financial
institution in Australia, with leading market positions
across key lines of business, and share in the benefits of
substantial revenue synergies going forward.
Westpac also outlined that the combined business would be a
market leader in Australia. Specifically, St.George and Westpac
would be:
* Australia's leading provider of home lending, with a
market share of 25%
* Australia's largest wealth platform provider with funds
under administration of $108 billion
The deal received objections from the union representing
Australia's bank workers
which vowed to stop the transaction through a national campaign,
complaining
that the merger will put 5,000 jobs are at risk.
Almost half of the 30,000 people employed by the two banks are
members of the Finance Sector Union.
About Westpac
Headquartered in Sydney, New South Wales, Australia --
http://www.westpac.com.au/-- Westpac Banking Corporation
provides a range of banking and financial services, including
retail, commercial, and institutional banking, as well as wealth
management services to individuals and business customers in
Australia, New Zealand, and the Pacific region.
About St George Bank
Headquartered in Kogarah, New South Wales, Australia --
http://www.stgeorge.com.au-- St. George Bank Limited is a
banking company. The Company operates in four business
segments: Retail Bank (RB), Institutional and Business Banking
(IBB), BankSA (BSA) and Wealth Management (WM). RB is
responsible for residential and consumer lending, provision of
personal financial services including transaction services, call
and term deposits, small business banking and financial
planners. This division manages retail branches, call centers,
agency networks and electronic channels, such as electronic
funds transfer at point of sale (EFTPOS) terminals, automated
teller machines (ATMs) and Internet banking.
On September 28, 2007, it disposed of its 100% interest in
Scottish Pacific Business Finance Holdings Pty. Limited.
* * *
As reported in the Troubled Company Reporter-Asia Pacific
on May 13, 2008, Moody's Investors Service reviewed, with
direction uncertain, the ratings of St.George Bank. It is rated
Aa2 for deposits and senior debt, Prime-1 for short-term
obligations and carries a bank financial strength rating (BFSR)
of B.
In addition, Fitch Ratings placed St.George Bank Limited's
'B' Individual Rating and 'BB+' Support Rating Floor on Rating
Watch Positive.
VISION ONE: Placed Under Voluntary Liquidation
-----------------------------------------------
Vision One Pty. Ltd.'s members agreed on April 21, 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
=========
C H I N A
=========
SHIMAO PROPERTY: To Slow Down in Acquiring Lands in 2H 2008
-----------------------------------------------------------
Shimao Property Holdings Ltd. plans to slow down in acquiring
lands in the second half of 2008, Sinocast News reports, citing
Vice Chairman Xu Shitan.
The company, the report says, initially plans to spend
CNY3.5 billion on acquisition of lands this year.
According to the report, for the first half 2008, the company
got sales income of CNY4 billion, half of the figure for entire
2007, and one quarter of the full-year goal for 2008.
The wild correction of mainland property market is considered
the key reason for the reduction of the goal in the wake of
severer macro control measures, the report notes.
However, Sinocast says, Mr. Shitan holds positive outlook for
the mainland property market in the face of solid demands.
Meanwhile, the report says Mr. Shitan believed mainland real
estate developers will still confront financial strain, so
Shimao Property expects to control its debt-asset ratio to 35%,
the same as that in 2007, or even lower level.
About Shimao Property
Shimao Property Holdings Limited -- http://www.shimaogroup.com/
-- is a large-scale developer of real estate projects in China,
specializing in high-end developments in prime locations. The
company's business portfolio comprises the development of
residential properties, retail properties, offices and hotels.
The company has 15 projects at various stages of development
located in Shanghai, Beijing, Harbin, Wuhan, Nanjing, Fuzhou,
Kunshan, Changshu, Shaoxing and Wuhu.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 17, 2008, Moody's Investors Service changed the outlook for
Shimao Property Holdings Limited's Baa3 issuer and bond ratings
to negative from stable. The rating action followed Shimao's
announcement that it acquired new property projects in Hangzhou
and Dalian for CNY3.07 billion and CNY1.65 billion respectively.
"The negative outlook is due to concerns that the aggressive
nature of Shimao's strategy for acquiring land could increase
its financial leverage and weaken its liquidity profile in the
near term," said Peter Choy, a Moody's Vice President and Senior
Credit Officer.
In July 2007, Fitch Ratings assigned a Long-term Foreign
Currency Issuer Default Rating of 'BB+' to China-based Shimao
Property Holdings Limited. Simultaneously,Fitch assigned issue
ratings of 'BB+' to Shimao's US$350 million senior notes due
2016 and USD250m senior floating rate notes due 2011,
respectively. The Outlook for the IDR is Stable.
In June 2007, Standard & Poor's Ratings Services said
that its rating on Shimao Property Holdings Ltd. (BB+/Stable/--)
was not immediately affected by the company's recent proposal to
inject most of its retail and commercial assets into A-
sharelisted Chinese property company, Shanghai Shimao Co. Ltd.,
in return for ultimate controlling ownership in the company.
XINHUA FINANCE: To Sell Mergent and Kinetic to Carousel Capital
---------------------------------------------------------------
Xinhua Finance Limited has signed an agreement to sell Mergent,
Inc., a US-based financial data company, and Kinetic Information
System Services Limited, a UK-based index calculation company,
to Carousel Capital Partners III, L.P., a private equity fund.
XFL Chief Executive Officer Jae Lie said "This transaction is
the initial result of the review of our operations which we have
undertaken in recent months in consultation with our financial
advisor Gleacher Partners. The sale of Mergent and Kinetic is
the first step in our overall strategy to unlock shareholder
value by focusing our resources on our core competency, which is
providing valuable information to China's financial information
sector. We continue to be committed to streamlining our
operations and focusing on growing our core businesses in
China."
Pursuant to the terms of the Agreement, the aggregate purchase
price will be US$93.5 million in cash, and the transaction is
expected to close in July, 2008. Within 45 days of the closing,
XFL will make an offer to repurchase approximately $50 million
of its outstanding US$100,000,000 10% Senior Guaranteed Notes
due 2011.
XFL Chief Financial Officer David Wang commented "We are pleased
with the successful sale of Mergent and Kinetic to Carousel
Capital, a leading private equity investor. Given the
challenging economic conditions in the US, we intend to apply a
portion of the sale proceeds to high growth opportunities in
China. We also plan to increase shareholder value by reducing
our long term indebtedness through the redemption of bonds. If
our offer to repurchase bonds is accepted by bondholders, we
expect that this redemption will decrease interest expense on
the bond by approximately US$5 million annually."
Completion of the transaction is subject to the fulfillment of
certain conditions, including the completion of financing
arrangements by the purchaser.
About Xinhua Finance Limited
Xinhua Finance Limited – http://www.xinhuafinance.com/-- is
China's premier financial information and media service provider
and is listed on the Mothers Board of the Tokyo Stock Exchange
(symbol: 9399) (OTC ADRs: XHFNY). Xinhua Finance's proprietary
content platform, comprising Indices, Ratings, Financial News,
and Investor Relations, serves financial institutions,
corporations and re-distributors worldwide. Through its
subsidiary Xinhua Finance Media Limited (NASDAQ: XFML), XFL
leverages its content across multiple distribution channels in
China including television, radio, newspaper, magazine and
outdoor media. Founded in November 1999, XFL is headquartered
in Shanghai, with offices and news bureaus spanning 12 countries
worldwide.
* * *
As of June 17, 2008, the company still holds Moody's "B2" LT
Family and Senior Unsecured Debt Ratings. It also currently
holds S&P's LT Credit Rating at "B."
XINHUA FINANCE: XFMedia Hires Richard Young for Expansion Plans
---------------------------------------------------------------
Xinhua Finance Media, a unit of Xinhua Finance Limited, hired
Mr. Richard Young, an executive with broad experience in sports
television rights, to assist the company as it expands further
its sports content focused broadcast assets.
Mr. Young holds the new title of Managing Director of the Xinhua
Sports Division, leveraging XFMedia's unique position and
resources in China to build sports content for its broadcast,
print and production assets. Xinhua Sports intends to provide
an integrated marketing solution for advertisers focusing on
China's growing number of sports viewers while offering access
into China's market for the international sports leagues.
"As interest in sports grows in China so does the need for a
sports broadcast operation with numerous ways to reach sports
fans, as ESPN has in the US," said XFMedia CEO Fredy Bush.
"The international sports leagues want access to
China's TV audience, and distribution is hard to get, especially
nationwide. I believe Richard will play a significant role in
helping XFMedia to expand its activities in this area."
In February, XFMedia arranged for the NFL's Superbowl to be
broadcast in China through the national satellite television
channel NMTV, the only nationwide broadcaster to carry the game
live.
Ms. Bush said XFMedia is planning to add to its assets in the
broadcasting area. "In terms of expansion, we will focus
particularly on sports and finance broadcasting. Television is
one of our larger margin businesses and the opportunities are
significant.
According to CTR Market Research, the estimated total
advertising revenue of four major nationwide and provincial
sports channels in China from January to May 2008, is around
CNY8.2 billion (i.e. approximately US$1.2 billion) with 59%
year-over-year growth." she said.
"XFMedia has the assets and resources to create an impressive
sports offering to the growing number of sports fans in China,"
said Mr. Young. "This 360 degree approach creates an integrated
solution for advertisers to reach their target and for major
sports rights holders to reach viewers in China."
Prior to joining XFMedia, Mr. Young founded and managed a
company providing television consulting services in production,
distribution and media rights in China for sports leagues,
broadcasters and other clients. Previously, he worked with ESPN
STAR Sports in Singapore, a joint venture between ESPN and Star
TV, where he held a number of senior positions including Vice-
President of Operations and Client Services and Vice-President
of Event Management Group and Program Development. His
experience also includes a number of years working for Sports
International, Entertainment Plus Ltd at a time when it was the
largest professional sports management group in Taiwan.
Mr. Young has more than 15 years experience in event management,
sales, acquisition, marketing and integration, with deep
experience in television rights and client service in 15 Asian
countries. He graduated Cum Laude with a dual-bachelor degree
in International Relations and East Asian Studies from Boston
University and has an MBA from University of Chicago. He
speaks, reads and writes Mandarin Chinese.
About Xinhua Finance Media
Xinhua Finance Media, a unit of Xinhua Finance Limited, is a
leading media group in China with nationwide access to the
upwardly mobile demographic. Through its synergistic business
groups, Broadcast, Print and Advertising, XFMedia offers a total
solution empowering clients at every stage of the media process
and connecting them with their target audience. Its unique
platform covers a wide range of media
About Xinhua Finance Limited
Xinhua Finance Limited – http://www.xinhuafinance.com/-- is
China's premier financial information and media service provider
and is listed on the Mothers Board of the Tokyo Stock Exchange
(symbol: 9399) (OTC ADRs: XHFNY). Xinhua Finance's proprietary
content platform, comprising Indices, Ratings, Financial News,
and Investor Relations, serves financial institutions,
corporations and re-distributors worldwide. Through its
subsidiary Xinhua Finance Media Limited (NASDAQ: XFML), XFL
leverages its content across multiple distribution channels in
China including television, radio, newspaper, magazine and
outdoor media. Founded in November 1999, XFL is headquartered
in Shanghai, with offices and news bureaus spanning 12 countries
worldwide.
* * *
As of June 17, 2008, the company still holds Moody's "B2" LT
Family and Senior Unsecured Debt Ratings. It also currently
holds S&P's LT Credit Rating at "B."
================
H O N G K O N G
================
BLOOM TIDE: Commences Liquidation Proceedings
---------------------------------------------
Bloom Tide Limited's members agreed on June 18, 2008, to
voluntarily liquidate the company's business. The company has
appointed Ma Yui Choi to facilitate the sale of its assets.
The liquidator can be reached at:
Ma Yui Choi
House F, Casa Del Mar, Lot 1211
DD 253, Clear Water Bay
Kowloon, Hong Kong
CKK INT'L: Members' Final Meeting Set on July 23
------------------------------------------------
The members of CKK International Limited will have their final
general meeting on July 23, 2008, at 5th Floor, Ho Lee
Commercial Building, 38-44 D'Aguilar Street, Central, in Hong
Kong to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator can be reached at:
Frank Tsz Chun Yuen
5th Floor, Ho Lee Commercial Building
38-44 D'Aguilar Street
Central, Hong Kong
DEFOND SALES: Members' Final Meeting Set on July 21
---------------------------------------------------
The members of Defond Sales Company Limited will have their
final general meeting on July 21, 2008, at 5th Floor, Chaiwan
Industrial Centre, 20 Lee Chung Street, Chai Wan, in Hong Kong
to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator can be reached at:
Tsang Ming Chit Stanley
5th Floor, Chaiwan Industrial Centre
20 Lee Chung Street, Chai Wan
Hong Kong
DEFOND SWITCH: Members' Final Meeting Set on July 21
----------------------------------------------------
The members of Defond Switch Company Limited will have their
final general meeting on July 21, 2008, at 5th Floor, Chaiwan
Industrial Centre, 20 Lee Chung Street, Chai Wan, in Hong Kong
to hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator can be reached at:
Tsang Ming Chit Stanley
5th Floor, Chaiwan Industrial Centre
20 Lee Chung Street, Chai Wan
Hong Kong
HENG JU: Members' Final Meeting Set on July 21
----------------------------------------------
The members of Heng Ju New Town Development Limited will have
their final general meeting on July 21, 2008, at Unit 1202, 12th
Floor, Malaysia Building, No. 50, Gloucester Road, Wanchai, in
Hong Kong to hear the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidators can be reached at:
Chan Chi Bor
Li Fat Chung
Unit 1202, 12th Floor, Malaysia Building
No. 50, Gloucester Road
Wanchai, Hong Kong
KEE MUN: Members' Final Meeting Set on July 25
----------------------------------------------
The members of Kee Mun Company Limited will have their final
general meeting on July 25, 2008, at 10th Floor, Yat Sang
Industrial Building, 13 Tai Yip Street, Kwun Tong, in Kowloon to
hear the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator can be reached at:
Lo Wai Ling Rita
10th Floor, Yat Sang Industrial Building
13 Tai Yip Street, Kwun Tong
Kowloon
PUI YEN: Members' Meeting Set on July 28
----------------------------------------
The members of Pui Yen Nursery Limited will have their final
general meeting on July 28, 2008, at Conference Room, 9th Floor,
Block D, in Hong Kong to hear the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator can be reached at:
Ng Kay Lam
Conference Room, 9th Floor
Block D, Hong Kong
SURPLUS EXPRESS: Members' Final Meeting Set on July 22
------------------------------------------------------
The members of Virgin Retail Holdings (Pacific) Limited will
have their final general meeting on July 22, 2008, at SUP Tower,
23rd Floor, Room 2301-2, 75-83 King's Road, Fortress Hill, in
Hong Kong to hear the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator can be reached at:
Cheung Ka Ho
SUP Tower, 23rd Floor, Room 2301-2
75-83 King's Road, Fortress Hill
Hong Kong
VIRGIN HOLDINGS: Members' Final Meeting Set on July 21
------------------------------------------------------
The members of Virgin Holdings (Hong Kong) Limited will have
their final general meeting on July 21, 2008, at 8th Floor,
Gloucester Tower, The Landmark, 15 Queen's Road, Central, in
Hong Kong to hear the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator can be reached at:
Iain Fegurson Bruce
8th Floor, Gloucester Tower
The Landmark, 15 Queen's Road
Central, Hong Kong
VIRGIN RETAIL: Members' Final Meeting Set on July 21
-----------------------------------------------------
The members of Virgin Retail Holdings (Pacific) Limited will
have their final general meeting on July 21, 2008, at 8th Floor,
Gloucester Tower, The Landmark, 15 Queen's Road, Central, in
Hong Kong to hear the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator can be reached at:
Iain Fegurson Bruce
8th Floor, Gloucester Tower
The Landmark, 15 Queen's Road
Central, Hong Kong
ZENESIS SPC: Fitch Downgrades AAA Notes Rating to BB+
-----------------------------------------------------
Fitch Ratings has downgraded two notes issued by Zenesis SPC
Series 2007-5 and removed them from Rating Watch Negative, as:
-- Series 2007-5/12 US$8,027,985 Class A floating rate notes
due 2012: downgraded to 'BB+' from 'AAA', removed from RWN;
and
-- Series 2007-5/14 US$24,217,497 Class A floating rate notes
due 2014: downgraded to 'BBB-' from 'AAA', removed from
RWN.
The two transactions are synthetic corporate single-tranche CDOs
referencing the same portfolio of primarily investment grade
corporate obligations, and managed by DBS Bank Ltd., which acts
as the transactions' substitution agent. There have been no
substitutions in the portfolio since closing in May 2007.
Since the transactions were placed on RWN on May 15, 2008 the
portfolio has experienced further negative rating migration,
mainly due to the downgrades of three reference entities in the
Buildings and Materials sector which reflects the challenges
afflicting the US homebuilders: Centex Corporation, Lennar
Corporation and Pulte Homes, Inc. All three companies, together
with another reference entity in the same sector, Toll Brothers
Inc, are on Negative Outlook.
Other key drivers of the transactions' credit risk include:
-- 16.0% of the portfolio is rated below investment grade
compared with 6.3% at closing, of which 3.5% is in the 'B'
rating category, and 12.5% in the 'BB' rating category.
-- Portfolio migration risk with 4.3% of the portfolio on RWN
and 24.5% of the portfolio on Negative Outlook.
-- Industry concentration of 42.9% in the three largest
industries, made up of 24.1% in Banking & Finance, 11.6% in
Telecommunications and 7.2% in Transportation.
-- The portfolio is heavily concentrated in the US which
represents 59.9% of the portfolio.
Given Fitch's view of concentration and the current credit
quality of the portfolio, the credit enhancement levels of 4.55%
for Series 2007-5/12 and 6.0% for Series 2007-5/14 are not
sufficient to justify the current ratings of these notes.
At close, proceeds from the issuance of both notes were
deposited as cash with DBS Bank Ltd. ('AA-'/'F1+'/Stable
Outlook) to collateralise CDS between the issuer and DBS Bank
Ltd.
Fitch released updated criteria on April 30, 2008 for corporate
CDOs and, at that time, noted it would be reviewing its ratings
accordingly to establish consistency for existing and new
transactions. As part of this review, Fitch makes standard
adjustments for any names on RWN or Negative Outlook, reducing
such ratings for default analysis purposes by two and one notch,
respectively.
Fitch has noted its review will be focused first on ratings most
exposed to risks it has highlighted in its updated criteria. As
such, these two transactions were placed on RWN on May 15, 2008.
As previously indicated, resolution of the Rating Watch status
depends on any plans managers/arrangers may choose to modify
either the structure or the portfolio. In this case, the
manager has confirmed that it does not intend to make any
modifications.
ZENESIS SPC: Fitch Slashes Two Notes Ratings to Low-B
-----------------------------------------------------
Fitch Ratings has downgraded two notes issued by Zenesis SPC
Series 2007-7 and removed them from Rating Watch Negative, as:
-- Zenesis Series 2007-7/12 US$5,866,770 Class A floating rate
notes due 2012: downgraded to 'BB-' from 'AAA', removed
from RWN; and
-- Zenesis Series 2007-7/14 US$12,582,718 Class A floating
rate notes due 2014: downgraded to 'BB+' from 'AAA',
removed from RWN.
The two transactions are synthetic corporate single-tranche CDOs
referencing the same portfolio of primarily investment grade
corporate obligations, and managed by DBS Bank Ltd., which acts
as the transactions' substitution agent. There has been no
substitution in the portfolio since closing in July 2007.
Since the transactions were placed on RWN on May 15, 2008 the
portfolio has experienced further negative rating migration,
mainly due to the downgrades of two reference entities in the
Buildings and Materials sector, Centex Corporation and Lennar
Corporation, which reflects the challenges afflicting the US
homebuilders. Both companies are on Negative Outlook.
Other key drivers of the transactions' credit risk include:
-- Portfolio credit risk deteriorating to an average portfolio
quality of 'BBB' from 'A'/'A-' at closing.
-- 7.0% of the portfolio is rated below investment grade,
compared with 0% at closing. Of the current non-investment
grade constituents, 0.8% of the portfolio is in the 'CCC'
and below categories, 0.8% of the portfolio in the 'B'
category and 5.4% in the 'BB' category.
-- Portfolio migration risk with 6.9% of the portfolio on RWN
and 19.2% of the portfolio on Negative Outlook.
-- Industry concentration of 37.7% in the three largest
industries, made up of 24.6% in Banking & Finance, 6.9% in
Telecommunications and 6.2% in General Retail.
-- The portfolio is heavily concentrated in the US which
represents 74.6% of the portfolio.
Given Fitch's view of concentration and the current credit
quality of the portfolio, the credit enhancement levels of 2.8%
for Series 2007-7/12 and 4.1% for Series 2007-7/14 are not
sufficient to justify the current ratings of these notes. Fitch
notes that these credit enhancement levels are likely to be
eroded should there be a credit event called on Residential
Capital LLC (rated 'D').
At close, proceeds from the issuance of both notes were
deposited as cash with DBS Bank Ltd. ('AA-'/'F1+'/Stable
Outlook) to collateralise credit default swaps between the
issuer and DBS Bank Ltd.
Fitch released updated criteria on April 30, 2008 for corporate
CDOs and, at that time, noted it would be reviewing its ratings
accordingly to establish consistency for existing and new
transactions. As part of this review, Fitch makes standard
adjustments for any names on RWN or Negative Outlook, reducing
such ratings for default analysis purposes by two and one notch,
respectively. Fitch has noted its review will be focused first
on ratings most exposed to risks it has highlighted in its
updated criteria. As such, these two transactions were placed
on RWN on May 15, 2008. As previously indicated, resolution of
the Rating Watch status depends on any plans managers/arrangers
may choose to modify either the structure or the portfolio. In
this case, the manager has confirmed that it does not intend to
make any modifications.
=========
I N D I A
=========
BHARTI AIRTEL: Plans Alternative Acquisition Deal
-------------------------------------------------
Bharti Airtel Limited is considering alternative acquisitions
after missing out to its closest rival in the race for MTN Group
Limited, Africa's largest wireless carrier, Harichandan Arakali
of Bloomberg News reports.
“The first preference is the emerging markets,” Bharti's
Managing Director Akhil Gupta told Bloomberg in a telephone
interview. “The philosophy is we can take this low-cost, low-
tariff model to many other parts of the world and dramatically
change the penetration levels there.”
Rajesh Jain, a senior partner at KPMG International's Indian
unit, told Bloomberg that an acquisition internationally is an
imperative for Bharti Airtel but not an urgent necessity.
As reported in the Troubled Company Reporter-Asia Pacific on
May 27, 2008, Bharti Airtel decided to disengage from its
ongoing talks with MTN saying that "MTN has. . . presented a
completely different structure, from what was agreed."
The company said the new structure envisages Bharti Airtel
becoming a subsidiary of MTN and exchange of majority shares of
Bharti Airtel held by the Bharti family and Singtel, in exchange
for a controlling stake in MTN.
Bharti called the structure as a "convoluted way of getting an
indirect control of the combined entity [which] would have
compromised the minority shareholders of Bharti Airtel and also
would not capture the synergies of a combined entity."
Bharti said it remains keen to expand in the international
arena.
Following the ended negotiations with Bharti, MTN spokeswoman
Nozipho January-Bardill told Bloomberg News that Chief Executive
Phutuma Nhleko is open to talks with other companies and that
this remains the case.
Bloomberg says Bharti shares have fallen 8.1 percent in Mumbai
trading since it abandoned the bid for MTN.
About Bharti Airtel Limited
Bharti Airtel Limited -- http://www.bhartiairtel.in/-- a group
company of Bharti Enterprises, is an integrated telecom services
provider with an aggregate of over 69.15 million customers as of
end of May 2008, consisting of 66.82 million mobile customers.
Bharti Airtel has been rated among the best performing companies
in the world in the BusinessWeek IT 100 list 2007.
Bharti Airtel is structured into three strategic business units
-- Mobile services, Telemedia services and Enterprise services.
The mobile business provides mobile & fixed wireless services
using GSM technology across 23 telecom circles. The Telemedia
business provides broadband & telephone services in 94 cities
and is foraying into the IPTV and DTH segments. The Enterprise
business provides end-to-end telecom solutions to corporate
customers and national & international long distance services to
carriers. All these services are provided under the Airtel
brand. Airtel's high-speed optic fibre network currently spans
over 73,787 kms covering all the major cities in the country.
The company has two international landing stations in Chennai
that connects two submarine cable systems -- i2i to
Singapore and SEA- ME-WE-4 to Europe.
* * *
As of June 6, 2008, Bharti Airtel continues to carry a “BB+”
Long Term Issuer Default Rating placed by Fitch on Nov. 19, 2007
with a Stable outlook.
JEYPORE SUGAR: Board to Consider FY 2008 Results on June 30
-----------------------------------------------------------
The meeting of Jeypore Sugar Company Ltd's Board of Directors
set on June 25, 2008, was adjourned to June 30, 2008.
On that date, the Board will consider the company's accounts for
year ended March 31, 2008.
Jeypore earlier said that it anticipates filing its fiscal year
2008 results by the end of this month.
Meanwhile, for the last four quarters, Jeypore Sugar Company
Ltd. incurred consecutive net losses. For the quarter ended
Dec. 31, 2007, the company incurred a net loss of Rs. 26.40
million on net sales of Rs. 449.93 million. For the quarter
ended Sept. 30, 2007, the company incurred a net loss of Rs.
58.22 million on net sales of Rs. 360.50 million. For the
quarter ended June 30, 2007, the company incurred a net loss of
Rs. 33.17 million on net sales of Rs. 566.64 million. For the
quarter ended March 31, 2007, the company incurred a net loss of
Rs. 114.62 million on net sales of Rs. 487.85 million.
Headquartered in Chennai, India, Jeypore Sugar Company Ltd.
(BOM:590054) -- http://www.kcp.co.in/-- manufactures sugar,
molasses and industrial alcohol. The company is part of the KCP
Group.
M/S. FORTIS: RBI Cancels Certificate of Registration
----------------------------------------------------
The Reserve Bank of India canceled the certificate of
registration granted to M/s. Fortis Financial Services Limited
for carrying on the business of a non-banking financial
institution.
Following cancellation of the registration certificate, M/s.
Fortis Financial Services Limited cannot transact the business
of a non-banking financial institution.
By the powers conferred under Section 45-IA (6) of the Reserve
Bank of India Act, 1934, the Reserve Bank can cancel the
registration certificate of a non-banking financial company.
The business of a non-banking financial institution is defined
in clause (a) of Section 45-I of the Reserve Bank of India Act,
1934.
M/s. Fortis Financial Services Limited has its registered office
at 255, First Floor, Okhla Industrial Estate, Phase-III, in New
Delhi.
STARCHIK SPECIALTIES: Board Approves Capital Reduction
------------------------------------------------------
Starchik Specialities Ltd's Board of Directors, at its meeting
held June 25, 2008, inter alia, approved the draft Scheme of
Reconstruction of Capital involving Reduction of Capital with
simultaneous Preferential Issue of up to 46,00,000 shares
/warrants u/s 391- 394 of the Companies Act, 1956.
The Board authorized Shri. Sanjay Kumar Sanghi, Managing
Director and Shri. Ritesh Kumar Sanghi, Director, to take all
necessary steps for filing the scheme with the Stock Exchanges
and the High Court of Andhra Pradesh.
Last month, Starchik's Board considered plans to approach the
Honorable High Court of Andhra Pradesh for a Scheme of
Reconstruction and appointed V. Harish Kumar and Associates,
Advocates to draft the said scheme and place before the Board
for consideration.
In Wednesday's meeting, the Board finalized the appointment of
Advocate for the High Court process.
Starchik Specialities Ltd is in the business of meat and poultry
food manufacturing and distribution.
On April, 25 2005, Starchik Specialities disclosed that because
the company could not create demand for its product and finding
it difficult to sustain in the market, the management decided to
close the operations of the plant from the year 2001-02 to
enable curtailing losses and costs.
Since then the company said it carried on the trading activity
with very low margins at least to cover the operational costs,
with the hope that it can convince the consumers and bring
awareness among them about the hygienic and quality superiority
of the frozen product over the conventional product while still
maintaining the freshness of the product, in the near future.
According to the company, very low margins in the trading
activity lead to huge accruals of financial charges and there
seems to be no possibility to create market for the frozen
product. Hence, to safeguard the interests of the company and
its members, the management proposed to sell the land and the
plant of the company with a view to clear all its debts and pay
the balance if any to the shareholders proportionately. The
management has also obtained members' approval for the said
proposal through postal ballot, the result of which was declared
on December 9, 2004.
Because it is not feasible for the company to solely depend on
the trading activity, it closed down its trading operations with
effect from April 1, 2005.
In October 2006, following the acquisition of Starchik by
Messrs. Ritesh Sanghi and Sanjay Sanghi, the company's
registered office was moved to Hyderguda, Hyderabad.
Starchik Specialities recently returned to profit after
incurring three consecutive annual losses. For the year ended
March 31, 2008, the company reported a net profit of Rs. 4.75
million on net sales of Rs. 68.81 million. For the years ended
March 31, 2007, March 31, 2006 and March 31, 2005, the company
incurred net losses of Rs. 2.96 million, Rs. 15.53 million and
Rs. 5.93 million respectively.
* S&P, CRISIL: Inflation over 8.5% Could Slow India's GDP Growth
----------------------------------------------------------------
Standard & Poor's and CRISIL said in a press statement that the
Indian economy is expected to be adversely affected by the surge
in inflation fuelled by energy and commodity prices. Despite
signs of growth slowing down from last year, the Reserve Bank of
India has already hiked interest rates twice during June to deal
with inflationary pressures and may well do so again. Higher
interest rates are expected to moderate growth even further.
Dr. Subir Gokarn, Chief Economist, Standard & Poor's Asia
Pacific, said: "We expect the inflation rate to average 8.5% to
9.0% during 2008-09. Food price scenarios have improved
somewhat, given comfortable levels of wheat stocks and
expectations of a normal monsoon this year. However, high oil
prices, strong input costs, and a depreciating rupee continue to
exacerbate inflationary and other pressures. High interest
rates, along with a slowing global economy, will trim GDP growth
to 7.8% in 2008-09. We see the yield on 10-year government
securities at 8.5% to 8.7% by fiscal year-end."
According to the rating agencies, rising inflation, a forecast
slowdown in economic growth, and turmoil in the global financial
markets have dampened investor confidence and led to foreign
capital outflow. This has led the rupee, which was already
under pressure from a rising oil import bill, to depreciate as
sharply this year as it appreciated in 2007.
S&P and CRISIL expects India's current account deficit to swell
to about 2.6% of GDP. The rupee should remain at about its
current level for the major part of the current financial year,
before appreciating to INR41-41.5/US$ towards the end of the
fiscal year, as global market conditions become more stable and
oil prices moderate, they said.
The rating agencies relate that fiscal improvements in the past
few years are likely to be reversed this year, due to a surge in
oil, fertilizer, and food subsidies. The central government's
fiscal deficit (including off-budget liabilities) is an
estimated 6.2% of GDP, compared with the budgeted 2.5%
(excluding off-budget liabilities). The consolidated fiscal
deficit of central government and states should touch 8.5% of
GDP.
Mr. Dharmakirti Joshi, Principal Economist, CRISIL, added:
"After four years of noteworthy fiscal consolidation, a reversal
is on the cards in 2008-09. The fiscal improvement was
supported by very strong revenue gains, particularly from direct
tax. These gains are now being offset by the sharp surge in the
subsidy burden from petroleum products and fertilizers. The
Sixth Pay Commission and a farm loan waiver will add to the
fiscal stress this year. Despite the deterioration, the
situation is not yet as bad as it was in the beginning of this
decade when the consolidated deficit of the centre and states
was above 10% of GDP."
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies
(NYSE:MHP), is a provider of financial market intelligence,
including independent credit ratings, indices, risk evaluation,
investment research and data. With approximately 8,500
employees, including wholly owned affiliates, located in 23
countries and markets, Standard & Poor's is an essential part of
the world's financial infrastructure and has played a leading
role for more than 140 years in providing investors with the
independent benchmarks they need to feel more confident about
their investment and financial decisions.
About CRISIL Limited
CRISIL is India's leading Ratings, Research, Risk and Policy
Advisory Company. CRISIL offers domestic and international
customers a unique combination of local insights and global
perspectives, delivering independent information, opinions and
solutions that help them make better informed business and
investment decisions, improve the efficiency of markets and
market participants, and help shape infrastructure policy and
projects. Our integrated range of capabilities includes credit
ratings and risk assessment; research on India's economy,
industries and companies; investment research outsourcing; fund
services; risk management and infrastructure advisory services.
=================
I N D O N E S I A
=================
ANEKA TAMBANG: Mining Deal with BHP Receives Backing from Lufti
---------------------------------------------------------------
Investment coordinating board head, Muhammad Lufti, said that
the nickel mining partnership between PT Aneka Tambang and BHP
Billiton at Gag Island in West Papua province has "strategic"
importance and should proceed, AFP reports.
As reported by the Troubled Company Reporter-Asia Pacific on
June 23, 2008, environmentalists have raised concerns for the
marine life in the Gag Island saying that it could pose a major
risk to the entire ecosystem.
"I understand that Gag Island is environmentally sensitive and
that's why we have to think about developing the smelting and
refining not on Gag Island but on the Halmahera side," Mr. Lufti
was quoted by AFP as saying.
Mr. Lufti told the news agency that he was ready for a backlash
but argued the economic interests to the impoverished region far
outweighed the potential damage to the ecosystem.
"We will do it responsibly and my board will do whatever it can
to make sure that (the joint venture) materialises," Mr. Lufti
told AFP.
About Aneka Tambang
PT Aneka Tambang Tbk -- http://www.antam.com/-- mines,
processes, develops, and explores natural deposits. The company
operates six mines. They are located in Riau (bauxite),
Sulawesi and Maluku (nickel), Central Java (iron sand), and
WestJava (gold). The company also operates a precious metal
refinery and a geology unit in Jakarta.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 17, 2008, Moody's Investors Service upgraded PT Aneka
Tambang (Persero) Tbk's corporate family rating to Ba3 from B1.
The action concluded the review for possible upgrade which
commenced on October 22, 2007.
On Dec. 4, 2006, that Standard & Poor's Ratings Services raised
its long-term corporate credit rating on Indonesian state-owned
miningcompany PT Antam Tbk. to 'B+' from 'B'. The outlook is
stable. At the same time, Standard & Poor's also raised to
'B+', from 'B', the rating on the senior unsecured notes issued
by Antam Finance Ltd. and guaranteed by Antam.
PT SUMBER: S&P Affirms 'B-' Rating with Negative Outlook
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed the 'B-' corporate
credit rating on Indonesian power generating entity PT Sumber
Segara Primadaya (S2P). The outlook is negative. Following
that, the rating is being withdrawn as there has been a lack of
timely updates from the privately-held company, which is crucial
given its weak liquidity. The withdrawal is also being done at
the company's request.
The rating is removed from CreditWatch, where it was placed on
March 12, 2008, with negative implications after its sustained
delay in attaining operational standards, resulting in lower
cash flows for servicing its debt-repayment arrangements.
"S2P has informed us that there are currently no overdue
interests or principal payments," said Standard & Poor's credit
analyst Joey Chew.
While the next installment due in July 2008 is expected to be
met by a US$50 million letter of credit facility backed fully by
cash collateral, the rating agency believes that the company's
cash flow is likely to be insufficient for servicing the near-
term maturing debt obligations, including the US$50 million
installment due in March 2009 and other near-term maturing loans
(about US$23 million outstanding as of end May 2008). This is a
result of longer-than-anticipated maintenance schedule.
Nonetheless, the immediate pressure on the ratings is partially
mitigated by the rating agency's expectation of some level of
support, based on the affirmations made by shareholders of the
company and track record of equity infusions so far. These,
however, remain uncertain and the amount falling due will be
increasing.
"Potential default concerns remain, given poor track record of
operations and very weak liquidity, despite S2P's current effort
to re-schedule the loan falling due in March 2009, which itself
manifests these concerns," Ms. Chew said.
While the outlook is negative, the near-term pressure on S2P's
cash flows and maturing debt obligations are likely to
precipitate into more immediate credit erosion on the company.
S2P has indicated that in-principle approvals are in place for
the rescheduling of the installment due in March 2009.
Furthermore, S&P views the likelihood of rescheduling as
somewhat high, given the shareholders' profile and the concerned
lenders. However, in our current assessment, if this
re-scheduling exercise is not concluded by September 2008,
the credit profile would rapidly deteriorate.
* INDONESIA: Registers 6.32 Percent Growth in 2007 Full-Year
------------------------------------------------------------
Indonesia's full-year growth for 2007 clocked in at 6.32%, the
fastest rate since the country was hit by the Asian financial
crisis 11 years ago, Antara News reports citing an official
data.
According to the report, the figure was slightly higher than the
government forecast of 6.30 percent, but remained lower than the
pre-crisis level of 7.8 percent recorded in 1996.
Slamet Sutomo was cited by Antara News as saying that the
Indonesian economy contracted 2.15 percent however in the last
quarter of 2007 compared to a year earlier, but grew 6.25
percent compared to the same quarter in 2006.
"Some external and domestic factors have resulted in a
contraction in the fourth quarter but full-year growth was
slightly better than the government's forecast," Mr. Sutomo told
Antara News and other reporters during a press briefing.
=========
J A P A N
=========
AIFUL CORP: Shares Hit Record Low on Lehman's Insolvency Report
---------------------------------------------------------------
Aiful Corporation fell for a second day Wednesday following a
Lehman Brothers report that said Aiful’s parent company could be
insolvent, Michiyo Nakamoto writes for The Financial Times.
According to FT, the company's shares closed down nearly 11 per
cent at JPY1,345, its lowest since the company was listed on
the Tokyo Stock Exchange in 1998.
FT relates that Lehman indicated in its report that Aiful had
not disclosed sufficient information to allay concerns that on a
parent basis it might in fact be insolvent.
“As of March 2008, Aiful had only JPY818 billion in parent loans
to cover JPY1,051 billion in debt. Looking solely at the parent
loan balance, Aiful is arguably insolvent,” FT Walter Altherr,
Lehman analyst, was cited by FT as saying.
Aiful spokesman Tomomasa Ito told Bloomberg that “Aiful is not
insolvent” and the company isn't having any trouble accessing
funds.
Bloomberg News relates, citing Mr. Altherr's report, that about
22 percent of loans at Aiful's parent company are non-
performing, and bad loans have risen for at least the last 19
quarters.
Aiful's ability to service debts depends on inter-company loan
repayments from subsidiaries, Mr. Altherr said in the report
cited by Bloomberg.
Lehman, according to FT, said that Aiful’s revenues were likely
to continue declining since two of its six big businesses were
slated for liquidation.
FT says this year Yoshitaka Fukuda, Aiful founder and president,
put JPY50 billion (US$462 million) of his own and his relatives’
money into the company to help bolster its capital base. Mr.
Fukuda and his family control about 23 percent of the company as
of Feb. 28, according to Bloomberg data.
Aiful Corporation (TYO:8515) -- http://www.ir-aiful.com/-- is
a Japan-based financial service provider. The company is
engaged in the provision of small-lot uncollateralized loan for
individual consumers, business loan for individuals, as well as
mortgage collateral and credit card services, in addition to the
collection and management of debts. Other business activities
the Company is involved in include the development, investment
and nurture of venture companies, as well as the leasing of real
estates. Headquartered in Kyoto, the Company has 29
subsidiaries and two associated companies.
NANTO BANK: Appoints Hiromune Nishiguchi as Board Chairman
----------------------------------------------------------
Nanto Bank Ltd. appointed Hiromune Nishiguchi as Chairman of the
Board and Representative Director, effective June 27, 2008,
Reuters reports.
Headquartered in Nara Prefecture, The Nanto Bank, Ltd. --
http://www.nantobank.co.jp/-- is a regional bank principally
engaged in the provision of a range of banking and financial
products and services. The bank operates in six main business
segments. The Banking segment provides banking, loan, stock
investment and currency exchange services through a network of
112 branches. The Securities segment is engaged in the stock
investment business. The Credit Guarantee segment provides
credit guarantee services for various loans, including housing
loan. The Leasing segment leases a range of products including
office automation equipments, industrial machinery and
automobiles. The Software Development segment develops and
sells computer systems for office automation backup and business
streamlining. The Credit Card segment provides various credit
card services. Other businesses include building management and
real estate-related services. Nanto Bank has 10 subsidiaries.
The Troubled Company Reporter - Asia Pacific reported on Mar. 9,
2007, that Fitch Ratings affirmed Nanto Bank's 'C' Individual
rating.
* JAPAN: Moody's Says Life Insurers' Bond Portfolios Changing
-------------------------------------------------------------
Although risks stemming from equity holdings remain, bond
portfolios are changing in a positive way at major Japanese life
insurers, according to a new report from Moody's Investors
Services.
"In FYE3/08, the major Japanese life insurers demonstrated that
the domestic business environment is not bad -- surrender and
lapse rates have been dropping and in most cases annualized
premiums of policies-in-force for third-sector and annuity
insurance edged up," writes Masahiko Miwa, Moody's AVP-Analyst
and author of the report. "However in the same fiscal year,
investment risk - which was already high - grew, as insurers'
unrealized gains plunged."
In contrast to the US and Europe, the impact of subprime-related
investments was limited, but the indirect impact of subprime or
the impact of the domestic equity market was not. The report,
"Special Comment: Changes in bond portfolios at major Japanese
life insurers, aiming at increasing sophistication of ALM,"
comments that the risk from equity holdings is not difficult to
measure and that those risks that have emerged thus far fall
within current ratings expectations - for now.
"In the last fiscal year, the major Japanese life insurers
lengthened the duration of their domestic bond portfolios much
more so than in the past. This seems to have decreased interest
rate risks stemming from mismatch between bond portfolio and
insurance liabilities, or interest rate risks due to volatility
of fair value of insurance liability," Miwa writes.
Due to international trends with regard to fair value-based
insurance liability, and expected changes to economic value-
based regulatory solvency evaluations in Japan, insurers are
likely to continue the move to longer durations in their
domestic bond portfolios -- which, along with lower high-risk
asset exposure to equities for example, could have a positive
impact on ratings.
===============
M A L A Y S I A
===============
CIMB BANK: S&P Holds “C+” Fund'l Strength Local Currency Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its long-term
counterparty credit ratings on Bumiputra-Commerce Holdings Bhd.
(BCHB; 'BBB-'), CIMB Bank Bhd. (CIMB Bank; 'BBB+') and CIMB
Investment Bank Bhd. (CIMB IB; 'BBB') on CreditWatch with
negative implications. At the same time, the issue ratings have
similarly been placed on CreditWatch with negative implications.
This comes after the announcement that the CIMB group will
purchase a 42% stake in BankThai Public Co. Ltd. (BankThai; not
rated) from Thailand's Financial Institutions Development Fund
and make a mandatory general offer.
BCHB is the ultimate holding company of the CIMB Group with CIMB
Bank, Malaysia's third-largest commercial bank, and CIMB IB
being core operating entities of the group.
The acquisition, which requires shareholder and regulatory
approval, is likely to be completed in the third quarter of
2008. CIMB Group would then be required under Thai laws to make
a tender offer to acquire all the remaining BankThai shares,
bringing the total possible acquisition cost to MYR 1.4 billion.
Including the full utilization of the standby facility for
buying shares from minority shareholders of Bank Niaga and PT
Lippo Bank Tbk, the total cash outlay could amount to
MYR3.4 billion.
"We expect to resolve the CreditWatch placement within the next
few weeks after discussing acquisition funding and integration
plans with CIMB group management and assessing the group's
emerging credit profile," said Standard & Poor's credit analyst
Ivan Tan.
Ratings List
Ratings Affirmed; CreditWatch/Outlook Action
To From
-- ----
CIMB Bank Bhd.
Bank Fundamental Strength Rating
Local Currency C+
CIMB Investment Bank Bhd.
Bank Fundamental Strength Rating
Local Currency C
Bumiputra-Commerce Holdings Bhd.
Counterparty Credit Rating BBB-/Watch Neg/A-3 BBB-
/Stable/A-3
Senior Unsecured
Foreign Currency BBB-/Watch Neg BBB-
CIMB Bank Bhd.
Counterparty Credit Rating BBB+/Watch Neg/A-2
BBB+/Stable/A-2
Subordinated
Foreign Currency BBB/Watch Neg BBB
CIMB Investment Bank Bhd.
Counterparty Credit Rating BBB/Watch Neg/A-2
BBB/Stable/A-2
Subordinated
Foreign Currency BBB-/Watch Neg BBB-
IDAMAN UNGGUL: Fairfax Interested to Acquire Stake in Tahan
-----------------------------------------------------------
Idaman Unggul Berhad has received a letter from Fairfax Asia
Limited expressing its interest to acquire an equity stake in
Tahan, a wholly owned subsidiary of the company.
The company is in the midst of securing the approval from BNM to
commence negotiations with Fairfax.
With this offer from Fairfax, the number of parties negotiating
with Idaman for the sale of Tahan is back to three.
About Idaman Unggul
Idaman Unggul Berhad is an investment holding company, whose
principal activity is the provision of corporate, administrative
and management support to its subsidiaries. The company
operates in two segments: insurance, which includes underwriting
of life insurance and all classes of general insurance business,
and other, which includes investment holding. Idaman Unggul's
subsidiaries include Tahan Insurance Malaysia Berhad, F.T. Land
Sdn. Bhd., PCM Synergy Sdn. Bhd., PICT Solution Sdn. Bhd. and
Straight Effort Sdn. Bhd. On July 12, 2006, the company
disposed Advanced Electronics (M) Sdn. Bhd. to Elevale Temasek
Sdn. Bhd. On July 3, 2006, Tahan Insurance Malaysia Berhad
disposed of its Life Insurance Business to AXA Affin Life
Insurance Berhad. Waikiki Beach Hotel Sdn. Bhd., a wholly owned
subsidiary of Idaman Unggul, was also divested as part of the
Life Insurance Business disposal. On January 17, 2007, the
company disposed IUB Asset Management Sdn Bhd to Capital
Intelligence Holdings Sdn Bhd.
* * *
As reported by Troubled Company Reporter-Asia Pacific on
March 6, 2008, the company was classified as an Affected
Listed Issuer under Amended Practice Note 17/2005 of the Listing
Requirements of Bursa Malaysia Securities Berhad, since the
company's shareholders' fund has dropped to MYR41.204 million
which is lower than the 25% of the paid-up share capital and
minimum issued and paid up capital of MYR60 milion required
under the Listing Requirements.
TENGGARA OIL: SC Okays Proposed Exemptions But Gives Conditions
---------------------------------------------------------------
In relation to Tenggara Oil Berhad's Proposed Exemptions,
wherein Pantomac Corporation Sdn Bhd, Tajam Daya Sdn Bhd, Tiong
Tack Kieng, Chan Ai Chin and Lau Mee King are exempted from the
obligation to undertake a mandatory offer for the remaining
Newco shares not already owned by them, the Securities
Commission has approved the company's Proposed Exemptions, but
gave these conditions:
(a)Pantomac and the parties acting in concert must at all
times disclose to the Securities Commission on all the
dealings in the securities of Tenggara and/or the Newco
made by them in the 12-month period from the date of the
granting of this exemption, as required under paragraph 11
of Practice Note 2.9.1 of the Code; and
(b)PM Securities/Pantomac and the parties acting in concert
to inform Securities Commission upon the completion of the
Proposed Acquisition of the Acquiree Companies.
About Tenggara Oil
Tenggara Oil Berhad is undertaking a divestment and
restructuring exercise, which will reposition it as a service-
oriented and trading group from its current resource-based
businesses. Current businesses include investment holding,
supply of ready mixed concrete, property holding, management and
construction. As part of a corporate revamp exercise, the
Company has repositioned itself in the oil and gas business,
which will be its core business. The Company is headquartered
in Kuala Lumpur, Malaysia.
Tenggara is in the process of implementing a debt restructuring
scheme with relevant parties.
====================
N E W Z E A L A N D
====================
AUSTRAL PACIFIC: Completes NZ$5.61 Mil. Common Shares Placement
---------------------------------------------------------------
Austral Pacific Energy Ltd. confirmed that it has completed the
placement of 11,222,360 common (ordinary) shares with attached
half-warrants, sold as units at NZ$0.50 per unit, for total
proceeds of NZ$5,611,180. Two half-warrants are exercisable for
one common share of the company's capital for 15 months after
closing at an exercise price of NZ$1.00.
The company said that the funds will be used to fund its current
and future drilling programs and other working capital. Results
from the Cheal A6 well are expected within the next week.
The shares and any shares issuable on exercise of the warrants
will be subject to a four month resale restricted period in
Canada. These securities are not being offered or sold in the
United States and will not be registered under the US Securities
Act of 1933. They will not be eligible for resale within the
United States except in accordance with available exemptions
from registration under that Act.
About Austral Pacific Energy
Headquartered in Wellington, New Zealand, Austral Pacific Energy
Ltd (NZE:APX)-- http://www.austral-pacific.com/-- is primarily
engaged in the acquisition, exploration, appraisal and
development of oil and gas properties in New Zealand and Papua
New Guinea.
Going Concern Doubt
As reported in Troubled Company Reporter–Asia Pacific on
April 7, 2008, KMPG in Wellington, New Zealand, Austral Pacific
Energy Ltd.'s auditor, noted that for the year ended
December 31, 2007, the company had a net loss of $22,030,249 and
accumulated deficit of $63,118,912; the company had a working
capital deficit of $29,982,748 and a shareholders' deficit of
$3,290,102 as at December 31, 2007; the company has been unable
to generate net cash from operating activities for each of the
years in the three year period ended December 31, 2007; the
company's cash balances and working capital are not sufficient
to fund all of its obligations with respect to its ongoing work
program requirements related to certain exploration permits; and
the company is in breach of several covenants relating to its
Investec Bank (Australia) Ltd loan facility following delays in
completing a project in accordance with established timelines.
Accordingly the loan facility and hedging arrangements have been
disclosed as current liabilities. These factors raise
substantial doubt about the company's ability to continue as a
going concern for a reasonable period of time, KMPG said.
COAST TO COAST: Commences Liquidation Proceedings
-------------------------------------------------
The High Court at Whangarei convened a hearing on June 23, 2008,
to consider an application putting Coast to Coast Bakery Limited
into liquidation.
The application was filed on May 13, 2008, by the Commissioner
of Inland Revenue.
The plaintiff's address for service is at the office of:
M. B. Smith, Crown Solicitor
Marsden Woods Inskip & Smith, Solicitors
122 Bank Street (PO Box 146), Whangarei
P.J. MAGEE is the plaintiff’s solicitor.
ELLIOTT CONSULTING: Commences Liquidation Proceedings
-----------------------------------------------------
The High Court at Whangarei convened a hearing on June 23, 2008,
to consider an application putting Elliott Consulting Limited
into liquidation.
The application was filed on April 16, 2008, by the Commissioner
of Inland Revenue.
The plaintiff's address for service is at the office of:
M. B. Smith, Crown Solicitor
Marsden Woods Inskip & Smith, Solicitors
122 Bank Street (PO Box 146), Whangarei
P.J. MAGEE is the plaintiff’s solicitor.
DORCHESTER PACIFIC: Unit to Defer Repayment Plan
------------------------------------------------
Dorchester Finance Ltd, a unit of Dorchester Pacific Limited,
will withdraw and not renew its prospectus and will seek the
approval of debenture holders and note holders to a deferred
repayment plan, but with continued interest payments.
Chairman of Dorchester Finance, Mr. Barry Graham said: “As a
result of the rapid decline in the property finance market and a
continuing fall in reinvestment rates the Board has formed the
view that there is now a risk of a cash flow shortfall arising
in future months.”
Mr. Graham added: “A deferred repayment plan should give us time
to realize property loan positions in an orderly way and ensure
full repayment to debenture holders and note holders.”
As at June 24, 2008, Dorchester Finance had NZ$168 million in
debenture stock secured against total assets of NZ$212 million,
including $18 million in cash. In addition it had NZ$8 million
in subordinated notes on issue.
The Board intends to work closely with both trustees, Perpetual
Trust Limited and New Zealand Permanent Trustees Limited, and
has engaged Grant Samuel and Associates Limited as an
independent adviser to assist in the preparation of a proposal
for investors to consider as soon as practicable.
Mr. Graham said: “The intention of the deferred repayment plan
is to allow us to repay principal owed to investors over a
period of approximately two years. Although the details are yet
to be formulated and agreed with the Trustees, Dorchester
Finance intends to continue to make interest payments.
Repayments of debenture and subordinated note maturities will be
suspended from June 26, 2008.
“Clearly, taking proactive measures in the current economic
environment is the best way to ensure full return of investors’
funds and to preserve value for stakeholders.”
According to Bloomberg, Dorchester Pacific shares slumped 32
percent to 21 cents on Wednesday. The company owns 25 percent
of St. Laurence Ltd., which announced June 24 that it had
stopped lending and will ask for approval to pay back investors
by installment.
About Dorchester Pacific
Headquartered in Auckland, New Zealand, Dorchester Pacific
Limited (NZE:DPC)-- http://www.dorchester.co.nz--is a financial
solutions provider, offering complementary products and services
across finance, insurance, savings and investments. The Finance
division provides investment opportunities through secured
debenture stock and subordinated unsecured notes, and financing
solutions for the property, business, equipment, motor vehicle
and personal finance sectors. Its insurance and savings
division provides a range of savings, life insurance, reverse
annuity mortgages, home equity release loans and other financial
products and services. The Investment Service division includes
equity investment advisers and sharebrokers, MoneyOnline and NZ
Investor Magazine, which provide professional, independent
investment advice, sharebroking and financial planning services.
Dorchester Pacific holds a 25% shareholding in St. Laurence
Limited, the holding company for a property-based investment and
finance group of companies, which manages assets for over 16,000
investors.
FAST MEDIAFLEX: Liquidation Hearing Scheduled Today
---------------------------------------------------
The High Court at Auckland scheduled a hearing at 10:00 a.m.
today, June 27, 2008, to consider an application putting Fast
Mediaflex Limited into liquidation.
The application was filed on March 18, 2008, by MTR Limited.
The plaintiff's address for service is at:
Credit Consultants Debt Services NZ Limited
Level 3, 3-9 Church Street
(PO Box 213 or DX SX 10069), Wellington
Telephone: (04) 470 5972
DIANNE S. LESTER is the plaintiff’s solicitor.
HARRIS TRANZ: Commences Liquidation Proceedings
-----------------------------------------------
The High Court at Whangarei held a hearing on June 23, 2008, to
consider an application putting Harris Tranz Haulz Limited into
liquidation.
The application was filed on April 21, 2008, by the Commissioner
of Inland Revenue.
The plaintiff's address for service is at the office of:
M. B. Smith, Crown Solicitor
Marsden Woods Inskip & Smith, Solicitors
122 Bank Street (PO Box 146), Whangarei.
P.J. MAGEE is the plaintiff’s solicitor.
PANMURE OFFICE: Proofs of Claim Due July 4
------------------------------------------
Creditors of Panmure Office Products Limited have until July 4,
2008, to prove their debts or claims and to establish any title
they may have to priority under section 312 of the Companies Act
1993.
Damien Grant and Steven Khov, insolvency practitioners, are the
appointed liquidators of the company.
The Liquidators can be reached at:
Waterstone Insolvency
PO Box 352, Auckland
Freephone: 0800CLOSED
Facsimile: 0800FAXWSI
ROOF SOLUTIONS: Commences Liquidation Proceedings
-------------------------------------------------
The High Court at Whangarei convened a hearing on June 23, 2008,
to consider an application putting Roof Solutions Limited into
liquidation.
The application was filed on April 21, 2008, by the Commissioner
of Inland Revenue.
The plaintiff's address for service is at the office of:
M. B. Smith, Crown Solicitor
Marsden Woods Inskip & Smith, Solicitors
122 Bank Street (PO Box 146), Whangarei
P.J. MAGEE is the plaintiff’s solicitor.
STRATEGIC FINANCE: Business Up For Sale
---------------------------------------
Strategic Finance Limited, a wholly owned subsidiary of Allco
HIT Limited, disclosed in a regulatory filing that Allco HIT's
has held high level discussions with a consortium of management
and other parties regarding the potential sale of its business.
According to the company, no formal agreements have been entered
into at this time and further notification to the market will
follow if a formal offer is received.
Allco HIT's Board intends to seek shareholder approval if the
sale of Strategic Finance is to occur.
About Strategic Finance
Headquartered in Wellington, New Zealand, Strategic Finance
Limited (NZE:SFLHA) -- http://www.strategicfinance.co.nz/--
operates as a specialist finance company offering financial
services, primarily to the property sector. It has four main
business activities: Lending within the property sector; Non-
property lending and investments; Corporate advisory and
management services, and Underwriting services. Lending within
the property sector is its primary activity with a focus on
providing finance for property development and property
investment activities. It was offering motor vehicle lending
under non-property lending and investments. The Company, and in
some circumstances through its wholly owned subsidiary Strategic
Advisory Limited, provides specialist advisory and management
services to the property and corporate sectors for which it
receives fee income. It may provide underwriting services.
These services include the underwriting of property related
share or debt securities offered by a promoter through a
registered prospectus. It receives fees for such services.
* NEW ZEALAND: Mar. 2008 Qtrly Current Account Deficit Increases
----------------------------------------------------------------
The seasonally adjusted current account deficit increased by
NZ$410 million in the March 2008 quarter, to reach NZ$3,527
million, Statistics New Zealand said. This increase was mainly
due to larger deficits on investment income and trade in goods.
The investment income deficit was NZ$3,580 million in the March
2008 quarter, an increase of NZ$315 million. Income from New
Zealand investment abroad dropped NZ$346 million this quarter,
mainly due to lower earnings by overseas subsidiaries of New
Zealand companies. Income from foreign investment in New Zealand
also fell this quarter, down NZ$31 million.
The seasonally adjusted balance on goods was a deficit of NZ$158
million in the March 2008 quarter, NZ$139 million larger than
the December 2007 quarter deficit. The larger deficit was a
result of imports increasing more than exports, taking both
exports and imports of goods to their highest recorded values.
The rise in the value of goods imports was mainly due to an
increase in the value of petroleum and petroleum products. The
rise in the value of exports was mainly because of record high
prices for dairy products, although the rise in dairy prices was
partly offset by a fall in dairy export volumes.
For the year ended March 2008, the current account deficit was
NZ$13.8 billion. This is 7.8 percent of GDP, compared with 7.9
percent of GDP for the year ended December 2007 and 8.2 percent
of GDP for the year ended March 2007. From the March 2007 year
to the March 2008 year, the goods deficit fell by NZ$1.1
billion. This fall was a result of export values increasing by
more than import values. However, the investment income deficit
increased by NZ$1.3 billion over this time, as income from
foreign investments in New Zealand increased more than income
from New Zealand investment abroad.
The inflow of foreign funds needed to finance New Zealand's
current account deficit has caused net liabilities to the rest
of the world to continue to grow. At 31 March 2008, New
Zealand's overseas liabilities exceeded its assets abroad by
NZ$153.2 billion – an increase of NZ$10.2 billion from March 31,
2007. Rising net overseas debt is the key feature of growth in
the net overseas liability position. From March 31, 2007 to
March 31, 2008, net overseas debt increased by 11.4 percent.
=====================
P H I L I P P I N E S
=====================
* PHILIPPINES: To Borrow PHP85BB in 3rd Qtr. from Local Market
--------------------------------------------------------------
The government of the Philippines will borrow PHP85 billion from
the local debt market in third quarter through the issuance of
government securities, Business World reports.
Citing National Treasurer Roberto B. Tan, the report states that
PHP36 billion worth of Treasury bills will be sold along with
PHp49 billion worth of five- and seven-year bonds.
The news agency notes that the third quarter program of the
government, which borrows money to plug the deficit and pay off
debts, is a 3.66% rise from the PHP82 billion programmed the
same period last year, and is 1.19% more than PHP84 billion
programmed in the second quarter of 2008.
Business World adds that the government had paused from offering
the three-month debt paper, used by banks in pricing loans, and
182-day Treasury bills after banks submitted "unreasonably" high
bids.
===============
X X X X X X X X
===============
* Moody's has Positive Outlook for Asian Palm-Oil Industry
----------------------------------------------------------
Moody's Investors Service has a positive rating outlook for Asia
Pacific's rated palm-oil industry over the next 12-18 months.
In a new report, Moody's says that a rapid rise and continued
high prices for crude palm oil (CPO) during the past 18 months
have strengthened balance sheets of Asian palm-oil producers,
who responded by buying more plantations and increased planting
of greenfield properties.
The report's lead author, Peter Choy, is a Moody's vice
president and senior credit officer. Choy says, "Execution
risks from expansion in 2009 are likely to be lower than in the
past year."
He explains that most issuers are now more inclined to focus on
organic growth, to delay their downstream, bio-diesel projects
due to higher feedstock costs, and to avoid new purchases amid
higher asset prices.
Choy says, "The positive outlook for the sector will not
necessarily translate into upgrades for rated firms because the
market is at a cyclical peak, and some issuers are still
integrating earlier expansions or are still small." He adds,
"Moody's will also continue to monitor issuers' corporate
governance and financial strategies, which affect their rating
outlook."
The report's second author, Wonnie Chu, a Moody's analyst, says,
"Recent regulatory changes may have a negative impact on bio-
diesel prospects, but such output accounts for a negligible
share of issuers' earnings."
Chu adds, "By contrast, a sharp reduction in India's import duty
on both refined and crude palm oil should support demand from
the Malaysian and Indonesian issuers." Chu also notes that
rated palm-oil companies face no imminent refinancing risks and
generally have good intrinsic liquidity.
* S&P: Lowers Ratings on 20 Asia-Pacific Synthetic CDOs
-------------------------------------------------------
Standard & Poor's Ratings Services lowered the ratings on 20
Asia-Pacific synthetic collateralized debt obligations (CDOs),
three of which remain on CreditWatch with negative implications.
The ratings on three CDOs were raised, seven CDOs were taken off
Credit Watch with negative implications, and two CDOs were taken
off CreditWatch with positive implications. Additionally, the
rating on one CDO was revised from CreditWatch with negative
implications to CreditWatch with developing implications.
The CDOs that had their ratings lowered have synthetic rated
over collateralization (SROC) levels that are less than 100%.
This indicates that they have insufficient credit support to
retain their former ratings following negative rating migration
within their reference portfolios.
For the transactions that had their ratings raised, their SROCs
have stayed above 100% at the higher rating level. For the
transactions that had their ratings affirmed and removed from
CreditWatch with positive implications, the review indicated
that they had insufficient credit support to be raised to the
higher level. Transactions that had their ratings removed
from CreditWatch with negative implications have SROC levels
that are more than 100% at the current rating, due to positive
rating migration in their portfolios. The revision of the
CreditWatch status from negative implications to developing
implications is a result of scenario analysis on defaulted
entities referenced in the CDO portfolio.
Where the SROC is less than 100%, scenarios that project the
current portfolio 90 days into the future are run, assuming no
asset rating migration. Where this projection indicates that
the SROC would return to a level above 100%, the rating is
maintained, but placed on CreditWatch negative. If the
projection indicates that the SROC would remain below 100%, the
rating is immediately lowered.
The rating actions taken on the affected transactions are as
follows:
Name Rating To Rating From SROC
----- --------- ----------- ----
Aphex Pacific
Capital Ltd.
Series 5
DESIGN 2006 A- A-/Watch Neg 100.0029%
ARLO Ltd. Series
2006 (SKL CDO
Series 11) AApNRi AA+pNRi/Watch Neg 100.3419%
Beryl Finance
Ltd. Series
2005-10 BBB- BBB/Watch Neg 100.3609%
Beryl Finance
Ltd. Series
2005-11 BBB- BBB/Watch Neg 100.3537%
Beryl Finance
Ltd. Series
2005-12 BBB BBB+/Watch Neg 100.0907%
Beryl Finance
Ltd. Series
2005-15 BBB BBB+/Watch Neg 100.0218%
Beryl Finance
Ltd. Series
2008-6 AA-pNRi AA-pNRi/Watch Neg 100.1321%
Corsair (Jersey)
No.2 Ltd.
Series 72 BBB+ A-/Watch Neg 100.1478%
Corsair (Jersey)
No.2 Ltd.
Series 88 A- A-/Watch Pos 100.1431%
Corsair (Jersey)
No.2 Ltd.
Series 90 A- A-/Watch Pos 100.1435%
Echo Funding
Pty Ltd.
Series 18 BBB BBB/Watch Neg 100.1649%
Eirles Two Ltd.
Series 241 A- A/Watch Neg 100.0449%
ELM B.V.
Series 112 BBB+ A-/Watch Neg 100.1103%
ELM B.V.
Series 99 BB+/Watch Neg BBB-/Watch Neg 99.9648%
HY-FI Securities
Ltd. Series 2 BBB+ BBB-/Watch Pos 100.4080%
Lion City CDO
Ltd. Series
2006-6 A- A-/Watch Neg 100.0489%
Lunar Funding
V PLC Series
2006-24 A+ A+/Watch Neg 100.1643%
Momentum CDO
(Europe) Ltd.
Series 2006-16 BBB+ BBB+/Watch Neg 100.0096%
Momentum CDO
(Europe) Ltd.
Series 2006-19 A- A/Watch Neg 100.0873%
Morgan Stanley
ACES SPC
2007-21 Class I AA- AA/Watch Neg 100.0363%
Morgan Stanley
ACES SPC
2007-29 AA+ AAA/Watch Neg 100.2306%
Morgan Stanley
ACES SPC
2007-9 Class
III (Principal) Ap/Watch Dev Ap/Watch Neg 100.0689%
Morgan Stanley
Managed ACES
SPC Series
2006-12
Class IA A+ A+/Watch Neg 100.2584%
Morgan Stanley
Managed ACES
SPC Series
2006-12
Class IIIA BBB BBB/Watch Neg 100.1682%
Morgan Stanley
Managed ACES
SPC Series
2006-7
Class IIA BBB BBB+/Watch Neg 100.0205%
Motif Finance
(Ireland) PLC
Series 2007-1 BBB+ A/Watch Neg 106.8776%
Motif Finance
(Ireland) PLC
Series 2007-5 BBB- BBB/Watch Neg 113.7980%
Rembrandt
Australia Trust
2003-10 AA+ AA/Watch Pos 100.9578%
Sceptre Capital
B.V Series
2007-4 BBB- BBB/Watch Neg 100.3764%
SELECT ACCESS
New Zealand
Series 2003-3 AAA AA/Watch Pos 100.5929%
Signum Platinum
I Ltd. Series
2006-1 A-/Watch Neg A/Watch Neg 99.9652%
Signum Platinum
II Ltd. Series
2006-1 BBB+ A-/Watch Neg 100.2602%
Signum Platinum
III Ltd Series
2007-1 A-/Watch Neg A+/Watch Neg 99.9911%
The subscript 'N.R.i' means that the interest payable on the
notes is not rated.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
ADVANCE HEALTHCA AHG 15.65 -6.78
ALLSTATE EXPLORA ALX 18.20 -42.78
AUSTINDO RES ARX 62.77 -15.88
AUSTAR UNITED AUN 525.67 -234.87
ANTARES ENERGY L AZZ 16.20 -4.36
BIRON APPAREL LT BIC 19.71 -2.22
CROESUS MINING CRS 16.00 -13.81
EVANS & TATE LTD ETWDA 103.76 -50.22
INTELLECT HLDGS IHG 15.25 -10.88
KH FOODS LTD KHF 38.40 -6.79
LAFAYETTE MIN LAF 105.24 -190.86
METAL STORM LTD MST 16.47 -2.90
RENISON CONSOLID RSN 38.83 -3.94
TOOTH & CO LTD TTH 120.47 -87.64
CHINA
HISENSE ELEC-H 921 604.98 -86.3
SHENZ SEG DASH-A 000007 101.02 -1.14
SHENZ CHINA BI-A 000017 29.38 -244.53
SHENZHEN SHENXIN 000034 44.99 -113.37
CHINA KEJIAN-A 000035 65.12 -167.31
SHENZHEN KONDA-A 000048 155.01 -24.45
HUNAN ANPLAS CO 000156 84.00 -81.35
ZHANGJIAJIE TO-A 000430 51.01 -8.25
DANDONG CHEM F-A 000498 115.94 -91.60
SUCCESS INFORMAT 000517 30.12 -14.83
GUANGDONG MEIYA 000529 66.44 -62.41
GUANGXIA YINCH-A 000557 53.46 -61.33
CHANG LING GROUP 000561 49.68 -115.81
QINGHAI SALT L-A 000578 105.64 -4.91
GUANGMING GRP FU 000587 62.37 -12.08
FUJIAN CFC IND-A 000592 24.20 -19.62
YUEYANG HENGLI-A 000622 40.27 -14.34
LAN BAO TECH INF 000631 29.44 -22.70
CHINA LIAONING-A 000638 15.43 -5.70
CHENGDU UNION-A 000693 59.53 -0.19
JIAOZUO XIN'AN-A 000719 50.82 -25.45
FUJIAN SANNONG-A 000732 64.42 -90.24
CHONGWING INTL-A 000736 24.75 -13.38
SICHUAN DIRECT-A 000757 128.55 -102.62
CHINESE.COM LOGI 000805 12.72 -20.57
SHENZHEN DAWNC-A 000863 36.85 -142.58
STELLAR MEGAUNIO 000892 64.93 -162.46
HUNAN AVA HOLDIN 000918 176.94 -11.26
GUANGDONG KEL-A 000921 604.98 -86.30
ANHUI KOYO GROUP 000979 64.28 -30.78
SHENZ CHINA BI-B 200017 29.38 -244.53
AMOI ELECTRONICS 600057 414.93 -30.4
SUNTIME INTERN-A 600084 372.80 -50.59
SHANG WORLDBES-A 600094 327.98 -175.17
MIANYANG GAO-A 600139 30.66 -12.44
HEBEI BAOSHUO CO 600155 313.38 -212.29
HUATONG TIANXI-A 600225 73.84 -41.14
TAIYUAN TIANLON 600234 12.69 -51.58
TIBET SUMMIT IND 600338 73.5 -16.42
CHONGQING CHANG 600369 98.87 -0.06
QINGHAI SUNSHI-A 600381 47.31 -49.66
WINOWNER GROUP C 600681 21.50 -81.28
HEBEI JINNIU C-A 600722 379.3 -2.89
SUNTEK TECHNOLOG 600728 44.69 -22.95
FUJIAN START-A 600734 105.66 -14.34
TIANJIN MARINE 600751 75.44 -26.6
TOPSUN SCIENCE-A 600771 232.68 -131.98
XIAMEN OVERSEAS 600870 433.19 -13.78
HUDA TECHNOLOG-A 600892 18.46 -1.9
TIANJIN MARINE-B 900938 75.44 -26.6
SHANG WORLDBES-B 900940 327.98 -17.17
HONG KONG
CHIA TAI ENTERPR 121 316.11 -40.95
CHINA BEST GROUP 370 55.54 -1.84
ASIA TELEMEDIA L 376 16.97 -7.53
WELLING HOLDING 382 303.95 -44.65
NEW CITY CHINA 456 110.83 -6.78
PALADIN LTD 495 167.43 -6.23
MAXX BIOSCIENCE 512 25.48 -5.36
CHINA HEALTHCARE 673 25.44 -3.37
PLUS HOLDINGS LT 1013 10.40 -10.21
SUNCORP TECH LTD 1063 31.94 -35.07
FE GOLDEN RES 1188 52.49 -9.92
WAH SANG GAS 8035 53.52 -87.70
BRILLIANT ARTS 8130 11.62 -2.32
VIAGOLD CAPITAL VIA 15.49 -3.11
INDONESIA
ARGO PANTES ARGO 217.96 -15.70
PRIMARINDO ASIA BIMA 11.56 -22.57
BUKAKA TEKNIK UT BUKK 44.45 -107.00
DAYA SAKTI UNGGU DSUC 30.76 -6.51
ERATEX DJAJA ERTX 31.06 -2.42
FATRAPOLINDO NUS FPNI 25.81 -0.72
JAKARTA KYOEI ST JKSW 30.89 -41.37
KARWELL INDONESI KARW 32.21 -2.26
PANCA WIRATAMA PWSI 31.46 -31.94
STEADY SAFE TBK SAFE 22.30 -8.31
SURABAYA AGUNG SAIP 283.40 -75.78
TEIJIN INDONESIA TFCO 279.56 -10.58
TRI POLYTA INDON TPIA 234.49 -51.58
UNITEX TBK UNTX 17.77 -18.88
INDIA
ANDREW YULE & CO ANY 81.41 -30.90
ARTSON ENGR ART 10.31 -0.71
ASHIMA LTD ASHM 96.57 -42.59
BHAGHEERATHA ENG BGEL 22.65 -28.20
BALAJI DISTILLER BLD 45.66 -74.20
CFL CAPITAL FIN CEATF 24.03 -43.8
CORE HEALTHCARE CPAR 185.37 241.91
DIGJAM LTD DGJM 98.77 -14.62
DISH TV INDIA DITV 239.48 -12.62
ELQUE POLYESTERS ELQP 13.04 -22.66
GANESH BENZOPLST GBP 82.16 -38.25
SURAT TEXTILE MI GCTY 15.97 -8.85
GUJARAT SIDHEE GSCL 59.44 -0.66
GUJARAT STATE FI GSF 43.60 -195.24
HIMACHAL FUTURIS HMFC 603.36 -13.34
HMT LTD HMT 316.41 -175.33
HINDUSTAN PHOTO HPHT 95.12 -953.35
IFB INDS LTD IFBI 40.50 -70.82
INDIA STEEL WORK ISI 56.76 -1.47
JCT ELECTRONICS JCTE 117.60 -50.17
JK SYNTHETICS JKS 17.99 -2.61
JENSON & NIC LTD JN 14.81 -81.79
KALYANPUR CEMENT KCEM 38.11 -48.48
LML LTD LML 86.80 -27.97
LLOYDS METALS LYDM 70.72 -10.25
LLOYDS STEEL IND LYDS 404.38 -86.45
MODI RUBBER LTD MDR 39.76 -24.30
MAFATLAL INDS MFI 95.67 -85.81
MILLENNIUM BEER MLB 38.26 -3.52
PAREKH PLATINUM PKPL 59.66 -75.55
PANCHMAHAL STEEL PMS 51.02 -0.33
PANYAM CEMENTS PYC 17.18 -18.32
ROLLATAINERS LTD RLT 22.97 -22.24
REMI METALS GUJA RMM 45.06 -51.10
RPG CABLES LTD RPG 51.43 -20.19
SIL BUSINESS ENT SILB 12.46 -19.96
SANDUR MANGANESE SMIO 32.57 -2.61
SIMPLEX REALTY SPLX 16.49 -0.44
SHREE RAMA MULTI SRMT 71.22 -29.91
TATA TELESERVICE TTLS 657.28 -73.89
TVS ELECTRONICS TVSEL 30.73 -1.57
UB ENGINEERING UBE 31.43 -2.86
USHA INDIA LTD USHA 12.06 -54.51
JOG ENGINEERING VMJ 50.08 -10.08
VXL INSTRUMENT VXLI 12.20 -0.62
YASHRAJ CONTAINE YRCT 17.49 -2.09
JAPAN
HEIWA OKUDA CO L 1790 82.68 -6.66
CHOYA CORP 3592 75.46 -2.24
CASIO MICRONICS 6760 184.29 -31.13
AIREX INC 6944 44.25 -7.05
SUMIYA CO 9939 70.82 -10.21
MALAYSIA
CNLT FAR EAST CNLT 42.36 -6.34
FOREMOST HLDGS FMST 11.04 -0.11
HARVEST COURT HAR 10.68 -5.71
LITYAN HLDGS BHD LIT 23.33 -26.71
MANGIUM INDUSTRI MANG 14.36 -18.65
PUTERA CAP BHD PCAP 10.56 -4.70
PANGLOBAL BHD PGL 179.11 -170.79
SUNWAY INFRASTRU SIB 399.84 -10.80
TECHVENTURE BHD TECH 37.23 -11.29
WEMBLEY INDS WMY 125.94 -283.62
WONDERFUL WIRE WW 22.80 -2.47
PHILIPPINES
APEX MINING-A APX 55.27 -1.97
APEX MINING 'B' APXB 55.27 -1.97
BENGUET CORP-A BC 83.36 -30.59
BENGUET CORP 'B' BCB 83.36 -30.59
CENTRAL AZUC TAR CAT 35.74 -1.80
CYBER BAY CORP CYBR 14.85 -74.30
FIL ESTATE CORP FC 43.03 -10.93
FILSYN CORP "A" FYN 24.84 -11.37
FILSYN CORP. "B" FYNB 24.84 -11.37
GOTESCO LAND-A GO 18.68 -10.86
GOTESCO LAND-B GOB 18.68 -10.86
MRC ALLIED MRC 14.95 -0.75
PICOP RESOURCES PCP 105.66 -23.33
PRIME ORION PHIL POPI 99.69 -82.12
EAST ASIA POWER PWR 72.74 -136.68
UNIVERSAL RIGHTF UP 45.12 -13.48
UNITED PARAGON UPM 27.11 -36.05
UNIWIDE HOLDINGS UW 65.66 -57.31
VICTORIAS MILL VMC 175.01 -38.64
SINGAPORE
ADV SYSTEMS AUTO ASA 21.96 -7.54
CHUAN SOON HUAT CSH 42.09 -3.64
FALMAC LTD FAL 10.57 -4.70
GUL TECHNOLOGIES GUL 172.80 -3.04
HL GLOBAL ENTERP HLGE 123.41 -7.36
INFORMATICS EDU INFO 29.09 -3.48
LINDETEVES-JACOB LJ 198.91 -66.97
L&M GROUP INV LNM 56.91 -10.59
PACIFIC CENTURY PAC 80.01 -10.54
SOUTH KOREA
ORICOM INC 010470 82.65 -40.04
UNICK CORP 011320 36.54 -4.45
STARMAX CO LTD 017050 73.13 -5.54
DAISHIN INFO 020180 740.50 -158.45
TONG YANG MAGIC 023020 355.15 -25.77
NANO MINING CO L 036270 26.64 -29.46
E-RAE ELECTRONIC 045310 45.47 -10.37
COSMOS PLC 053170 19.31 -4.95
SEJI CO LTD 053330 37.25 -0.31
MEDIACORP INC 053890 53.31 -32.22
DAHUI CO LTD 055250 186.00 -1.50
TAIWAN
CHIEN TAI CEMENT 1107 213.25 -8.62
PROTOP TECHNOLOG 2410 55.69 -13.46
YEU TYAN MACHINE 8702 39.57 -271.07
THAILAND
BANGKOK RUBBER BRC 89.62 -81.26
BANGKOK RUBBER-F BRC/F 89.62 -81.26
BANGKOK STEEL IN BSI 458.73 -136.44
BANGKOK STEEL-F BSI/F 458.73 -136.44
CIRCUIT ELEC PCL CIRKIT 24.60 -94.26
CIRCUIT ELEC-FRN CIRKIT/F 24.60 -94.26
CENTRAL PAPER IN CPICO 13.25 -241.78
CENTRAL PAPER-F CPICO/F 13.25 -241.78
THAI-DENMARK PCL DMARK 19.57 -3.20
THAI-DENMARK-F DMARK/F 19.57 -3.20
DATAMAT PCL DTM 17.55 -1.72
DATAMAT PLC-F DTM/F 17.55 -1.72
ITV PCL ITV 44.70 -73.07
ITV PCL-FOREIGN ITV/F 44.70 -73.07
K-TECH CONSTRUCT KTECH/F 83.20 -5.69
NEW PLUS KNITT NPK 10.08 -2.03
NEW PLUS KNITT-F NPK/F 10.08 -2.03
KUANG PEI SAN POMPUI 18.78 -14.07
KUANG PEI SAN-F POMPUI/F 18.78 -14.07
QUALITY CONSTRUC QCON 76.13 -293.83
QUALITY CONSTR-F QCON/F 76.13 -293.83
SAFARI WORLD PUB SAFARI 128.58 -13.64
SAFARI WORLD-FOR SAFARI/F 128.58 -13.64
SIAM GEN FACTOR SGF 30.18 -6.79
SIAM GEN FACT-F SGF/F 30.18 -6.79
SAHAMITR PRESSUR SMPC 27.26 -34.59
SAHAMITR PRESS-F SMPC/F 27.26 -34.59
SRI THAI FOOD & SRI 18.29 -43.37
SRI THAI FOOD -F SRI/F 18.29 -43.37
TUNTEX THAILAND TUNTEX 252.49 -41.58
TUNTEX THAILAN-F TUNTEX/F 252.49 -41.58
UNIVERSAL STARCH USC 103.61 -48.62
UNIVERSAL STAR-F USC/F 103.61 -48.62
*********
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. Marites M. Claro, 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.
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