/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080708.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, July 8, 2008, Vol. 11, No. 134 Headlines A U S T R A L I A ENRON AUSTRALIA: To Declare Dividend on July 21 HARRINGTON HOMES: Members' Meeting Slated for July 11 HARTZ GROUP: Sale of Company to Juicy Isle Completed HL DIAGNOSTICS: To Declare Dividend on July 25 INVESTIN SECURE: Creditors Have Until July 10 to File Claims JAKAMUNDI PTY: Members and Creditors to Meet on July 11 LATUADUNGAVEL PTY: Proofs of Debt Due July 10 NORTH SYDNEY: To Declare Dividend on July 25 SANDS PRINT: To Declare Dividend on July 24 SHARMAN SHEETMETAL: To Declare Dividend on July 23 UBS AG: Moody's Downgrades Financial Strength Rating to B- VIDLEY NOMINEES: To Declare Dividend on July 23 * AUSTRALIA: Construction Activity Declines in June 2008 * AUSTRALIA: Job Advertisements Continued to Fall in June 2008 C H I N A AGILE PROPERTY: Units Enter Subscription Agreement w/ Crystal I AGILE PROPERTY: Moody's Affirms Ba3 Corporate Family Rating CHINA SOUTHERN: Selling Four Boeing 777-200 Aircrafts * CHINA: Gov't May Inject Funds to Businesses Hit by Quake H O N G K O N G DANUBIO COMPANY: Liquidator Quits Post EVERGREEN DEV'T: Liquidator Quits Post ERISKERY COMPANY: Liquidator Quits Post ESTARCOL COMPANY: Liquidator Quits Post EPSOMMER LIMITED: Liquidator Quits Post FABERSON LIMITED: Liquidator Quits Post FINO COMPANY: Liquidator Quits Post FORTUNE MOON: Liquidator Quits Post GLADFORCE LMITED: Liquidator Quits Post GREATGRAND DEVELOPMENT: Liquidator Quits Post I N D I A AMBALAL SARABHAI: Sells Assets to Pay Employee Wages CORPORATION BANK: Fitch Cuts Individual Rating to 'C/D' from 'C' SHYAMAL HOLDINGS: Emperor Consultancy Acquires 9.96% Stake SINGER INDIA: To Appeal BIFR-Approved Rehabilitation Scheme SPICEJET: WL Ross Offers US$100 Mil. Working Capital Funding TATA POWER: Director Anil Kumar Sardana Quits Post I N D O N E S I A PT PERTAMINA: Aria Bima Disappointed Over LPG Price Increase * INDONESIA: Inflation Reaches 2.46% in June J A P A N MAGARA CONSTRUCTION: Files for Court-Supervised Rehabilitation N E W Z E A L A N D ADSTYLE BUILDING: Commences Liquidation Proceedings CATALYTIC NETWORK: Liquidators Set July 17 as Claims Bar Date CINDERELLA NZ: Liquidators Set July 16 as Claims Filing Deadline HELL NORTH: Liquidators Set July 18 as Claims Filing Deadline JAMPAC HOLDINGS: Commences Liquidation Proceedings KOREAN KIMCHI: Commences Liquidation Proceedings M.J.BLOMFIELD: Liquidators Set July 11 as Claims Bar Date STANTHOM HOLDINGS: Shareholders Appoint Liquidator * NEW ZEALAND: Consumer Confidence Reaches Record Low P H I L I P P I N E S COLLEGE ASSURANCE: To Sell Stake in Bank of Commerce to Arctic PICOP RESOURCES: Siguion Reyna to Quit from Board * MOODY'S: Gives Stable Outlook to San Miguel & Universal Robina * Fitch Says Phil. Banks Have Improved Fin'l Profile in 2 Years S R I L A N K A UNION BANK: Fitch Holds BB+(1ka) Rating on Improved AssetQuality X X X X X X X X * BOND PRICING: For the Week June 30 -July 4, 2008 - - - - - ================= A U S T R A L I A ================= ENRON AUSTRALIA: To Declare Dividend on July 21 ----------------------------------------------- Enron Australia Finance Pty Limited will declare dividend on July 21, 2008. Creditors are required to file their proofs of debt by July 19, 2008, to be included in the company's dividend distribution. The company's liquidator is: Anthony Milton Sims SimsPartners Chartered Accountants Level 5, 55 Hunter Street Sydney NSW 2000 HARRINGTON HOMES: Members' Meeting Slated for July 11 ----------------------------------------------------- Harrington Homes Pty limited will hold a general meeting for its members at 11:00 a.m. on July 11, 2008. During the meeting, the company's liquidator, John Crouch, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: John Crouch GPO Box 4395 Sydney NSW 2001 Australia HARTZ GROUP: Sale of Company to Juicy Isle Completed ---------------------------------------------------- After about four weeks of negotiations, Juicy Isle has finally completed its purchase of Hartz Group for an undisclosed sum. ABC News reports that one of the terms of the sale stated that creditor Business Expansion Capital stipulate that Hartz staff receive all their entitlements and any future dispute over the Hartz company, will be between Hartz owner, Stephen Powell, and BE Capital. BE Capital is the present managing controller of Hartz. In addition, ABC News says the deal provides that the majority of Hartz workers will be offered employment at Juicy Isle's Cambridge plant. In April, Mercury News relates, investment firm BE Capital appointed controllers to manage Hartz, less than seven months after it provided a AU$600,000 loan to the company. BE managing controllers, who claim Hartz broke the terms of the loan agreement, worked on selling the company to recoup their loan and a risk fee of at least AU$600,000, the report says. Mr. Powell sought an injunction order from the Supreme Court to stop the sale of his business going ahead, but lost the ruling to BE Capital, Mercury News says. About Hartz Group Based in Prince of Wales Bay, Australia, Hartz Group -- http://www.hartz.com.au/-- was initially formed as a manufacturer of chilled juices. It has developed its proprietary brands to include long-life fruit juices and mineral water. HL DIAGNOSTICS: To Declare Dividend on July 25 ---------------------------------------------- HL Diagnostics Pty Ltd will declare dividend on July 25, 2008. Creditors are required to file their proofs of debt by July 10, 2008, to be included in the company's dividend distribution. The company's liquidator is: Martin Jones Ferrier Hodgson Level 26, BankWest Tower 108 St Georges Terrace Perth WA 6000 Australia INVESTIN SECURE: Creditors Have Until July 10 to File Claims ------------------------------------------------------------ Investin Secure Developments Limited will declare first and final dividend for its creditors. Creditors are required to file their proofs of debt by July 10, 2008, to be included in the company's dividend distribution. The company's liquidator is: Geoffrey Mcdonald Hall Chadwick Level 1, 91 Upton Street Bundall QLD 4217 Australia JAKAMUNDI PTY: Members and Creditors to Meet on July 11 ------------------------------------------------------- Jakamundi Pty Limited will hold a general meeting for its members and creditors at 10:00 a.m. on July 11, 2008. During the meeting, the company's liquidator, Julie Williams, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Julie Williams Insolvency and Turnaround Solutions 360 Queen Street Brisbane QLD 4000 Telephone: (07) 3221 7433 Facsimile: (07) 3221 7437 Australia LATUADUNGAVEL PTY: Proofs of Debt Due July 10 --------------------------------------------- During a general meeting held on June 2, 2008, the members of Latuadungavel Pty Ltd resolved to voluntarily liquidate the company's business. Nicholas Giasoumi and Roger Darren Grant were appointed as liquidators. Creditors are required to file their proofs of debt by July 10, 2008, to be included in the company's dividend distribution. The Liquidator can be reached at: Dye & Co. Pty Ltd Chartered Accountants 165 Camberwell Road Hawthorn East VIC 3123 Australia NORTH SYDNEY: To Declare Dividend on July 25 -------------------------------------------- North Sydney Finance Pty Ltd will declare dividend on July 25, 2008. Creditors are required to file their proofs of debt by July 10, 2008, to be included in the company's dividend distribution. The company's liquidator is: Martin Jones Ferrier Hodgson Level 26, BankWest Tower 108 St Georges Terrace Perth WA 6000 Australia SANDS PRINT: To Declare Dividend on July 24 ------------------------------------------- Sands Print Group Ltd will declare dividend on July 24, 2008. Creditors are required to file their proofs of debt by July 10, 2008, to be included in the company's dividend distribution. The company's liquidator is: C. P. White HLB Mann Judd Chartered Accountants Level 1, 160 Queen Street Melbourne VIC 3000 Australia SHARMAN SHEETMETAL: To Declare Dividend on July 23 -------------------------------------------------- Sharman Sheetmetal Pty Limited will declare dividend on July 23, 2008. Creditors are required to file their proofs of debt by July 9, 2008, to be included in the company's dividend distribution. The company's liquidator is: M. O. Basedow Basedows Chartered Accountants Business Advisors & Recovery Specialists 160 Greenhill Road Parkside SA 5063 Telephone: (08) 8373 5111 Facsimile: (08) 8373 5511 Australia UBS AG: Moody's Downgrades Financial Strength Rating to B- ---------------------------------------------------------- Moody's Investors Service downgraded to B- from B the financial strength rating (BFSR) and to Aa2 from Aa1 the senior debt and deposit ratings of UBS AG. The outlook for these ratings is stable. The short-term P-1 rating is affirmed. The bank's subordinated debt ratings as well as the backed long-term senior and subordinated debt and deposit ratings of UBS' rated subsidiaries have also been downgraded in line with the parent. The debt and deposit ratings of UBS Deutschland and UBS Loan Finance LLC have been downgraded to A1. The D+ BFSR and P-1 short-term rating of UBS Deutschland are affirmed. This concludes the review that was initiated on April 1 2008 when the bank's ratings were downgraded from B+/ Aaa to B/Aa1 and left on review for further downgrade. This downgrade reflects the challenges still facing the bank's management team to return UBS to a position of stability following the losses in its Investment Banking division. The bank's financial performance and risk management since the onset of the financial crisis have been below the level expected of a B (BFSR) / Aa1 (deposit & debt) rated bank. "The bank has initiated many changes to senior management, risk management, and, more recently, corporate governance, but it is not yet clear whether these changes will be effective considering the complexity of the task", said Elisabeth Rudman, a Moody's Senior Credit Officer. A robust risk management framework will be a vital factor for the bank's overall creditworthiness. UBS is still undertaking a strategic review of its investment banking operations and the future of the bank's FICC (fixed income, currencies and commodities) division is less clear. The bank remains a leading player in many areas, including advisory, equity capital markets and equity sales and trading, but the operating environment will remain tough for investment banking activities for some time. Moody's considers the core Wealth Management franchise to be resilient, and although the bank's very high profile difficulties have led to some outflows of assets under management, Moody's considers that the bank's franchise has not been permanently affected. Asset Management is facing issues regarding the performance of some its funds, but this is unrelated to the losses in the Investment Banking (IB) division. Net new money outflows in Wealth Management and Asset Management are not large in comparison to the bank's CHF2.8trn assets under management (AUM) at end March 2008, and most of the reduction in AUM (down from CHF3.2trn at end December 2007) has been related to currency effects, market downturn and poor performance of UBS' funds. Nevertheless, we expect the bank to continue to experience weaker net new money inflows in the short-medium term due to the bank's reputation issues as well as the potentially damaging tax investigations in the US. With regards to the bank's troubled US real estate and related structured credit position, Moody's has concluded that the current marks taken by the bank are prudent and in line with the rating agency's own estimate of current losses. Given the still high level of remaining exposures, the possibility remains that a further deterioration in market conditions will lead to new writedowns over the course of the year. The bank's pre- announcement today regarding earnings and writedowns in Q2 08 is in line with Moody's expectations, given market deterioration over the quarter. "However, importantly the bank has replenished capital to a high level, with the bank indicating a proforma Tier 1 of 11.5% at the end of June 2008, and therefore we expect that potential further writedowns can be absorbed by the bank without the need for additional recapitalisation", explained Elisabeth Rudman. At the time of its rating action on April 1, 2008, Moody's explained that the review would also consider the possibility of wider notching for the bank's hybrid instruments. These instruments have mandatory deferral triggers relating to the Bank of Switzerland's minimum capital requirements and the availability of distributable profits. Moody's has concluded it is not necessary to widen the notching as it expects that UBS will maintain high capital ratios and sufficient distributable reserves. However, if large losses reported by the bank deplete the bank's distributable reserves available to service the coupons on hybrid debt instruments, Moody's could reconsider the notching. About UBS AG UBS AG is headquartered in Zurich; as of 31 December 2007, it had total assets of CHF 2,273 billion and shareholders' equity of CHF36 billion. VIDLEY NOMINEES: To Declare Dividend on July 23 ------------------------------------------------ Sharman Sheetmetal Pty Limited will declare dividend on July 23, 2008. Creditors are required to file their proofs of debt by July 9, 2008, to be included in the company's dividend distribution. The company's liquidator is: M. O. Basedow Basedows Chartered Accountants Business Advisors & Recovery Specialists 160 Greenhill Road Parkside SA 5063 Telephone: (08) 8373 5111 Facsimile: (08) 8373 5511 Australia * AUSTRALIA: Construction Activity Declines in June 2008 -------------------------------------------------------- The national construction industry declined for a fourth consecutive month in June 2008, although the rate of decline was less marked than in the previous month. The Australian Industry Group - Housing Industry Association Performance of Construction Index registered 40.3, to remain below the critical 50.0 points level separating expansion from contraction. Australian Industry Group Associate Director, Economics and Research, Tony Pensabene said, "The findings confirm the intense and on-going pressures on the major construction sectors from higher interest rates and tighter liquidity. We are continuing to see weakness on a broad industry front, with falling demand, weaker economic conditions, and increased competition for work, cited as key factors by firms for the continued fall-off in activity. "Despite a moderation in the contraction of new business volumes in June, the outlook remains subdued, with further weakness in activity likely to persist over coming months," Mr. Pensabene said. HIA Chief Economist, Harley Dale, said "The 2008/09 financial year will be a flat one at best for new residential construction and this situation will place further pressure on already very tight rental markets, among other negative impacts. "Renewed cyclical weakness is embedded in the housing sector in the short term. That unfortunate situation is already in play as the Australian PCI(R) results over the first half of 2008 clearly indicate. "Structural constraints such as high fees, taxes, charges, and planning delays can, however, be acted upon by governments and it is vital such action is embarked upon now," Mr. Dale said. * AUSTRALIA: Job Advertisements Continued to Fall in June 2008 -------------------------------------------------------------- The total number of jobs advertised in major metropolitan newspapers and on the internet fell by a seasonally adjusted 3.0% in June to a weekly average of per week, the ANZ Banking Group survey said. This follows a 1.7% decrease in May. The total number of advertisements in June was 6.2% higher than 12 months ago. In trend terms the total number of job advertisements fell by 0.6% in June. Looking at the different channels for advertising jobs, the number of job advertisements in major metropolitan newspapers decreased by 3.5% in June to an average of per week. This followed a 13.5% decrease in May. Newspaper advertisements are now 17.9% lower than in June 2007. In trend terms, the number of newspaper job advertisements fell by 2.4% to be 15.1% lower than a year ago. The fall in newspaper job advertisements in June was driven by decreases in Victoria (-6.8%), the ACT (-5.7%), Queensland (-5.6%), New South Wales (-4.1%), and the Northern Territory (-2.3%). In contrast, South Australia (+1.0%), Western Australia (+0.3%) and Tasmania (+16.6%) bucked the trend. The number of internet job advertisements fell by 2.9% in June to average per week. In trend terms, internet job advertisements continued to fall by a modest 0.5% in June, although they remain 11.7% higher over the past year. ANZ Co-Head of Australian Economics Sally Auld, said �Total job advertisements have fallen in June, extending the declines we saw in May. In trend terms, we are now seeing a moderation in job advertising in both newspapers and on the internet. This is consistent with the trend easing in employment growth since the start of the year. Employment did fall in absolute terms in May, but given this was the first decline in 18 months, it is unlikely that this foreshadows a sustained downturn in employment. While employment growth should ease modestly over the next six months, we do not expect a significant slowing in labour market activity. Indeed, the risk may be that persistent skill shortages could encourage firms to hoard labour. This should ensure that while labour market conditions soften, the slowdown in employment growth and the rise in the unemployment rate will be reasonably measured.� �On a state by state basis, Western Australia and South Australia both experienced moderate gains in newspaper job advertisements in June, consistent with a plateauing of job advertisements in those states. While Tasmania experienced strong growth in the month, the data are historically volatile due to the relatively small number of advertisements in the state.� ========= C H I N A ========= AGILE PROPERTY: Units Enter Subscription Agreement w/ Crystal I --------------------------------------------------------------- Agile Property Holdings Limited's units, Crown Golden and Forever Fame, entered into a subscription agreement with Crystal I. Under the agreement, Crystal I agreed to subscribe for the Subscriber Shares at the Consideration and Forever Fame agreed to subscribe for the New Shares at the Existing Shareholder Subscription Price. On completion of the Subscription and the subscription of the New Shares by Forever Fame, Forever Fame and Crystal I will have 70% and 30% shareholding interests in Crown Golden respectively. Forever Fame has also granted to Crystal I a first participation right to jointly develop other real estate projects in the Restricted Location at the same percentage shareholding as that in Crown Golden. Crystal I and the ultimate beneficial owner of Crystal I are third parties independent of the company and connected persons, as defined in the Listing Rules, of the company. The transaction contemplated under the Subscription constitutes discloseable transaction for the Company under the Listing Rules and will be subject to the disclosure requirements as set out in Chapter 14 of the Listing Rules. A circular relating to the transactions contemplated under the Subscription and the grant of the First Participation Right will be dispatched to the Shareholders in due course. About Agile Property With principal offices in Kowloon, Hong Kong, Agile Property Holdings Limited -- http://www.agile.com.cn-- is a land developer of Guangdong Province, China. It was established in 1985 as a furniture maker in Zhongshan City, and entered the property business in 1992. On December 15, 2005, Agile Property was listed on the Hong Kong Stock Exchange. Agile holds a range of properties, such as villas, duplexes, apartments and condominiums. Besides residential property business, Agile is also engaged in the development of commercial properties, including retail shops and commercial complexes. AGILE PROPERTY: Moody's Affirms Ba3 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service has affirmed Agile Property Holding Limited's (Agile) Ba3 corporate family and senior unsecured bond ratings. The ratings outlook is stable. The affirmation follows Agile's announcement that it has sold its 30% interest in Crown Golden Investments Limited (Crown Golden) to Crystal I for CNY5,283 million. Crown Golden holds 100% interests in two project companies, which in turn own the Hainan development projects. "The sales proceeds will provide Agile with part of its funding needs and somewhat offset the cashflow impact of a slowdown in property sales," says Kaven Tsang, Moody's lead analyst for the company, adding, "As a result, Agile's overall financial and liquidity profiles remain appropriate for its Ba3 ratings." Moody's notes that the completion of the transaction is subject to various conditions, including Agile obtaining all the land certificates. Any negative development that results in the termination of the agreement and Agile having to refund Crystal I would warrant a reassessment of the ratings. About Agile Property Agile Property Holdings Limited is one of the major property developers in China, targeting the mid-to-high end segment. It has a land bank with around 28.4 million sqm of gross floor area (GFA). CHINA SOUTHERN: Selling Four Boeing 777-200 Aircrafts ----------------------------------------------------- China Southern is soliciting bids for the purchase of its four Boeing B777-200A medium size aircrafts, the airline said on its web site. The airline currently operates a fleet of 10 Boeing 777 aircrafts, including six extended range models serving long-haul routes. Jeffrey Ng of Dow Jones Newswire writes that the list prices of the aircrafts were around US$115 million to US$143 million in the mid-1990s when purchased new. China Southern, Dow Jones relates, didn't say why it wants to retire the planes given their relative young age. About China Southern Headquartered in Guangzhou, China, China Southern Airlines Co. Ltd. -- http://www.cs-air.com-- engages in the operation of airlines, as well as in aircraft maintenance and air catering operations in the People's Republic of China and internationally. It provides commercial airlines, cargo services, logistics operations, air catering, utility service, hotel operation, travel services, aircraft leasing, and Internet services. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 3, 2008, Fitch Ratings affirmed China Southern Airlines Co. Ltd.'s "B+" Long-term Foreign Currency and Local Currency Issuer Default Ratings. The Outlook on the ratings is Stable. * CHINA: Gov't May Inject Funds to Businesses Hit by Quake ---------------------------------------------------------- State-owned Assets Supervision and Administration Commission (SASAC) said China may inject capital into state-run companies that incurred heavy losses from the May 12 earthquake, Zhang Dingmin of Bloomberg News reports, citing the China Securities Journal. The report says SASAC will consider recapitalizing companies affiliated with the central government that suffered after the quake in southwestern Sichuan. According to the report, Liu Nanchang, deputy performance assessment director of SASAC, said the money will come from returns on SASAC stakes in state-owned companies. Bloomberg says total quake losses at the so-called centrally administered companies exceeded CNY80 billion (US$11.7 billion). The commission may lower the performance targets set for some companies after evaluating their quake losses, the report cited Mr. Nanchang as saying. =============== H O N G K O N G =============== DANUBIO COMPANY: Liquidator Quits Post ---------------------------------------- On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator for Danubio Company Limited. EVERGREEN DEV'T: Liquidator Quits Post -------------------------------------- On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator for Evergreen Development Company Limited. ERISKERY COMPANY: Liquidator Quits Post --------------------------------------- On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator for Eriskery Company Limited. ESTARCOL COMPANY: Liquidator Quits Post --------------------------------------- On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator for Estracol Company Limited. EPSOMMER LIMITED: Liquidator Quits Post --------------------------------------- On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator for Epsommer Limited. FABERSON LIMITED: Liquidator Quits Post --------------------------------------- On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator for Faberson Limited. FINO COMPANY: Liquidator Quits Post --------------------------------------- On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator for Fino Company Limited. FORTUNE MOON: Liquidator Quits Post ----------------------------------- On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator for Fortune Moon Limited. GLADFORCE LMITED: Liquidator Quits Post ----------------------------------- On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator for Gladforce Limited. GREATGRAND DEVELOPMENT: Liquidator Quits Post --------------------------------------------- On July 4, 2008, Ernest Lai Ho Kai stepped down as liquidator for Greatgrand Development Limited. ========= I N D I A ========= AMBALAL SARABHAI: Sells Assets to Pay Employee Wages ---------------------------------------------------- As part of the ongoing rehabilitation process of its business, Ambalal Sarabhai Enterprises Ltd said it received permission from the Company Law Board (CLB) to sell a 3,63,000 sq. ft of land at its Baroda campus to Neptune Infrastructure and Monet Securities Pvt Ltd. In addition, CLB permitted the company to sell a 82,900 sq. ft of land also at its Baroda campus. Proceeds from the sale will be utilized for payment of workers dues. Because many employee of its accounts department have opted for this scheme, the company said it could not complete the audit of its annual accounts for the year ended March 31, 2008, in spite of its best efforts. The asset sale faced opposition from a group of shareholders who filed a litigation before the CLB seeking to restrain the company from selling its properties. The shareholders also sought removal of Shri. Kartikeya Sarabhai as Director of the company and the appointment of a new Director to take his place. Meanwhile, the company said it ended its manufacturing activities due to power source problems. Ambalal Sarabhai Enterprises Limited (BSE: AMBL) engages in the manufacture and marketing of pharmaceutical formulations and bulk drugs in India. It also manufactures electronic instruments. CORPORATION BANK: Fitch Cuts Individual Rating to 'C/D' from 'C' ---------------------------------------------------------------- Fitch Ratings has downgraded India-based Corporation Bank's Individual rating to 'C/D' from 'C'. The agency has affirmed CB's Support rating at '4'. CB in the past had the highest level of capitalisation among Indian banks and reported above average profitability. However, these parameters have gradually declined with growth in the loan portfolio and reduced margins. These factors, including the bank's limited income and portfolio diversity (compared to higher rated banks in India) are reflected in the downgrade. In FY08, the bank's loan portfolio grew at a significantly higher rate than the Indian banking system and the bank targets similar growth in FY09, particularly in the SME segment. In a less benign credit environment marked by rising interest rates, targeting aggressive growth could be challenging and may increase the risk profile of the bank. At FYE08, CB was the eighteenth-largest bank in India by assets. While Reserve Bank of India has a good track record of supporting banks in distress, support in an extreme situation may be prioritized for larger and systemically more important banks, which is reflected in CB's support rating of '4'. CB's capital adequacy ratio (CAR; FY08: 12.09%, FY07: 12.76%), an important indicator of financial strength, has been declining gradually since 2004 (FY04: 20%) and is now close to the system median. Nevertheless, Fitch expects the bank to be able to maintain CAR above its target of 12%, as the bank has a relatively high level of core capital (Tier 1 ratio was 9.63% in FY08; 11.3% in FY07), which provides the bank with ample headroom to raise Tier 2 capital to support growth and provide for operational risk charge under Basel II. CB's FY08 ROA of 1.23% improved from FY07 (1.15%), mainly due to lower provisions for loan loss as well as the result of write- backs of provisions for depreciation in investments. Net interest margin (FY08: 2.74%; FY07: 3.25%) would likely decline further as the bank targets strong growth and it may be difficult to fully pass on the rising cost of deposits. The bank's fee income is stable and contributes 10% of operating income, driven primarily by cash management services, but remains considerably lower than the best banks in India. Delinquencies in the retail and SME sector have been rising for Indian banks, and while CB's loan portfolio has been well managed, its loan loss provisions may have to increase from the current low level (FY08 loan loss provision/average loans ratio: 0.35%; FY07: 0.68%). Like most Indian banks, CB's gross (FY08: 1.47%; FY07: 2.05%) and net (FY08: 0.32%; FY07: 0.47%) NPL ratios have improved and compare well with the best banks in India. However, the ratios could increase in a less benign credit environment, as the result of a hike in lending rates, as well as the impact of seasoning of its rapidly grown loan portfolio. Nevertheless, the bank's asset quality and net NPL/equity ratio compare well with the higher-rated banks in India. Also, its risk management systems are improving and its IT infrastructure is one of the best amongst government banks. CB is 57%-owned by the government of India and another 27% is held by the Life Insurance Corporation of India (which is, in turn, wholly-owned by the government of India). The bank has a national presence with 981 branches and 957 ATMs. It traditionally catered to small businesses, and has recently increased its focus on the retail segment as well as large corporates. SHYAMAL HOLDINGS: Emperor Consultancy Acquires 9.96% Stake ---------------------------------------------------------- Shyamal Holdings & Trading Ltd disclosed in a regulatory filing with the Bombay Stock Exchange that it has entered into a share purchase agreement with Emperor Consultancy Services Pvt Ltd. Under the agreement, Emperor Consultancy will purchase 23,900 equity shares of the company representing 9.96% of the total paid up equity share capital at a price of Rs 6/- per share from the shareholders of the company. Headquartered in Mumbai, India, Shyamal Holdings & Trading Ltd is a finance and investments company. For four consecutive years, Shyamal Holdings reported constant net profit figure. For the year ended March 31, 2008, the company posted a net profit of Rs. 0.01 million on net sales of Rs. 0.28 million. For the year ended March 31, 2007, the company posted a net profit of Rs. 0.01 million on net sales of Rs. 0.27 million. For the year ended March 31, 2006, the company posted a net profit of Rs. 0.01 million on net sales of Rs. 0.25 million. For the year ended March 31, 2005, the company posted a net profit of Rs. 0.01 million on net sales of Rs. 0.24 million. SINGER INDIA: To Appeal BIFR-Approved Rehabilitation Scheme ----------------------------------------------------------- Singer India Ltd disclosed in a regulatory filing that its Rehabilitation Scheme dated May 6, 2008, has been approved by the Board for Industrial and Financial Reconstruction in their final hearing held on April 28, 2008. According to the company, it has preferred an appeal before the Appellate Authority for Industrial & Financial Reconstruction in respect of certain matters of the scheme. The company said it will start implementing the scheme pending disposal of appeal by the AAIFR. In an earlier filing, the company said that its Board of Directors, as part of implementing the sanctioned scheme, resolved that the existing equity share capital of the company be reduced by 90% and then every ten equity shares of Rs 1 each be consolidated into one equity share of Rs 10 each fully paid up. The Board also scheduled the next annual general meeting of the company on August 19, 2008, to consider these matters: 1. Allotting additional equity shares of Rs.10 each to the company's promoters viz. Singer (India) BV. Netherlands and/or its associates after receipt of the money equivalent to Rs 8.35 crores. 2. Conversion of 10% of the ECB of US$1.7 million, received from Singer Asia to equity shares capital to be allotted at par to Singer as per the sanctioned scheme. In January, Singer India said it made one time settlement of Rs 700 lacs with consortium of bankers lead by State Bank of Travancore and the full amount has been paid. As of January 29, 2008, the company said it has no outstanding dues to banks and financial institutions. Following limited review of Singer India's report for the quarter ended December 31, 2007, the company's auditors noted, among others, that the net worth at the company as at December 31, 2007, has been completely eroded. The auditors also noted that the company has been declared a sick industrial unit in terms of Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985. Singer India recently returned to profit after incurring consecutive annual net losses since March 31, 2002. For the year ended March 31, 2008, the company posted net profit of Rs. 273.20 million on net sales of Rs. 495.50 million. Singer India Limited principally manufactures sewing machines and sewing machine accessories. The company also manufactures small appliances and consumer durables like irons, toasters, kettles, fans, televisions, refrigerators and washing machines. SPICEJET: WL Ross Offers US$100 Mil. Working Capital Funding ------------------------------------------------------------ SpiceJet Limited has received a US$100 million offer from private equity investor, WL Ross & Co LLC, for the airline�s working capital requirements, The Hindu Business Line reports. According to the report, SpiceJet is learnt to be keen on accepting the offer from WL Ross as the company is known to be a turnaround specialist -- something the airline needs badly after three straight years of losses. Reports say that Paramount Airways, Jet Airways and Anil Dhirubhai Ambani Group have previously indicated their interest in SpiceJet, however, Spicejet clarified in a regulatory filing that �the Company has till date not received any formal communication from any party.� Meanwhile, the Troubled Company Reporter-Asia Pacific reported yesterday that SpiceJet is close to sealing a share-swap deal with Kingfisher Airlines that would give SpiceJet shareholders one share of the merged entity for every three SpiceJet shares they own. Reuters said shares of SpiceJet rose as much as 14 percent on Friday on news of the share-swap deal. The Times of India reported that Kingfisher's executive vice president Hitesh Patel said he would not comment on the issue, but added: "I can see additional consolidation in the industry in next 12 to 18 months. All these airlines won't be hanging around that long. If as predicted, crude hits US$178 to a barrel in September, it will kill some players.... The access to funds of Kingfisher is strong and the backing of UB Group is a strong plus." SpiceJet Limited -- http://www.spicejet.com/-- is an airline carrier in India. During the fiscal year ended May 31, 2007 (fiscal 2007), the company increased its fleet size to 11 aircrafts covering 14 destinations and operating 83 daily flights. The aircrafts acquired during fiscal 2007, were the next generation Boeing737-800. The company has also integrated with Tata AIG Insurance Company Limited to commence travel insurance sales, which was launched in May 2007. * * * Spicejet incurred net losses for at least two consecutive years -- INR414.2 million in the year ended May 31, 2006, and INR287.05 million in the year ended May 31, 2005. The company changed its financial year from June-May to April-March. For the ten months ended March 31, 2007, the airline carrier booked a net loss of INR707.43 million. The Hindu Business Line reported that SpiceJet posted a loss of Rs 133.51 crore during 2007-08, which was about 98 per cent more than the previous year. TATA POWER: Director Anil Kumar Sardana Quits Post -------------------------------------------------- Tata Power Company Ltd disclosed in a regulatory filing with the Bombay Stock Exchange that Mr. Anil Kumar Sardana has resigned as Director of the company with effect from July 2, 2008. Following Mr. Sardana's resignation, the company appointed Dr. R H Patil and Mr. P G Mankad as Additional Directors with effect from July 3, 2008. Tata Power Company Ltd. -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81-MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Standard & Poor's Ratings Services, on Aug. 24, 2007, lowered its corporate credit rating on India's Tata Power Co. Ltd. to 'BB-' from 'BB+'. S&P said the outlook is stable. At the same time, the rating on Tata Power's US$300 million senior unsecured bonds have been lowered to 'BB-' from 'BB+'. Moody's Investors Service, on July 3, 2007, downgraded the corporate family rating of Tata Power Company to Ba3 from Ba1. At the same time, Moody's downgraded its senior unsecured bond rating to B1 from Ba2. Moody's said the ratings outlook is negative. All ratings still hold to date. ================= I N D O N E S I A ================= PT PERTAMINA: Aria Bima Disappointed Over LPG Price Increase ------------------------------------------------------------ Aria Bima of the Indonesian Democratic Party of Struggle (PDI) has expressed disappointment on Pertamina's price increase of 12-kg LPG, IOGNews reports. "Imagine, it was only last month that the government increased the oil prices putting a heavy burden on the people, and now Pertamina had raised the price of 12-kg LPG starting July 1," Mr. Bima was quoted by IOGNews as saying. Mr. Bima also told the news agency that the company should have postponed the LPG price hike, and wait for the recovery of the people's purchasing power. Mr. Bima added that Pertamina should consider the people's weakening purchasing power following the 28.7 percent increase in the fuel prices recently. About PT Pertamina PT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in November 2001 and Government Regulation No.31/2003 has changed its legal status from a special state owned enterprise into a Limited Liability Company. In carrying out its activities, PT Pertamina implements an integrated system from upstream to downstream. Pertamina operates seven oil refineries with a total output capacity of around 1 million barrels per day. However, these refineries only cover about three-quarters of domestic oil demand, the rest is supplied by imports. Despite reporting a net profit of IDR3.03 trillion for the first six months of 2005, Pertamina's failure to service its financial obligations was pegged as one of the contributors to Indonesia's decreased income for the year. In August 2005, Pertamina's debt to United States firm Karaha Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion. The debt had increased when, in 2003, a U.S. court ordered the Company to pay compensation to KBC, relating to an international arbitration decision, when the Indonesian Government halted a geothermal project in Karaha Bodas, East Java. Since that time, the debt has steadily risen due to the Company's failure to pay the compensation immediately. * INDONESIA: Inflation Reaches 2.46% in June -------------------------------------------- Indonesia's inflation rate for the month of June reached 2.46%, higher than the recorded 1.41% in May, Indahnesia reports citing Ali Rosidi, a member of the State Statistics Agency BPS. According to Indahnesia, Mr. Ali said the inflation was higher than the previous months because of the rise in fuel prices late May. The inflation occurred in almost all products and services and because of the size of the country, various regions have their own inflation rate. The report notes that the biggest inflation took place in Kendari, Central Sulawesi. Prices there rose 6.49 percent. The lowest inflation was in Bogor, which saw prices rise just 1.1 percent. The inflation over the first half of 2008 now already reached 7.37 percent, while the year-on-year inflation is slightly above 11 percent now. ========= J A P A N ========= MAGARA CONSTRUCTION: Files for Court-Supervised Rehabilitation -------------------------------------------------------------- Magara Construction Co., a Japanese general contractor with JPY34.8 billion (US$326 million) in liabilities, has filed for court-supervised rehabilitation, Norie Kuboyama of Bloomberg News reports. According to the report, the Osaka District Court granted protection for the liabilities of Magara Construction, based in Kanazawa, Ishikawa Prefecture. The company, the report relates, has been restructuring with the aid of a local bank since December, when it disclosed accounting irregularities. The company filed for protection because it faced difficulties obtaining accounts receivable from a client that filed for bankruptcy protection in late June, the report says. About Magara Construction Magara Construction Co., Limited -- http://www.magara.co.jp/ -- is a Japan-based construction company. The company operates in three business segments. The Construction segment is involved in the construction and civil engineering businesses, including steel sash, pile and facility constructions. The segment, though the company's associated companies, is also engaged in the sale of construction materials such as ready-mixed concrete, concrete secondly products and reinforcing steels. The Real Estate segment is engaged in the brokerage, leasing and management of real estate properties, as well as the development of housing sites. The Others segment is involved in the provision of non-life insurance agency services and the operation of golf courses. Headquartered in Ishikawa Prefecture, the Company has four associated companies. ==================== N E W Z E A L A N D ==================== ADSTYLE BUILDING: Commences Liquidation Proceedings --------------------------------------------------- The High Court at Auckland convened a hearing on July 4, 2008, to consider an application putting Adstyle Building & Construction Limited into liquidation. The application was filed on March 17, 2008, by the Commissioner of Inland Revenue. The plaintiff's address for service is at: Inland Revenue Department Legal and Technical Services 5-7 Byron Avenue PO Box 33150 Takapuna, Auckland Telephone: (09) 984 1514 Facsimile: (09) 984 3116 Michael Kinlim Yan is the plaintiff's solicitor. CATALYTIC NETWORK: Liquidators Set July 17 as Claims Bar Date ------------------------------------------------------------- The High Court at Auckland has appointed John Trevor Whittfield and Victoria Toon, insolvency practitioners of Auckland, as liquidators of Catalytic Network Limited. The Liquidators set July 17, 2008, as the last day for creditors to file their proofs of debt. The Liquidators can be reached at: McDonald Vague PO Box 6092 Wellesley Street Post Office Auckland Telephone: (09) 303 0506 Facsimile: (09) 303 0508 Website: www.mvp.co.nz CINDERELLA NZ: Liquidators Set July 16 as Claims Filing Deadline ---------------------------------------------------------------- Pursuant to Section 3, 255(2)(a) of the Companies Act 1993, the shareholders of Cinderella NZ Limited, resolved that the company be liquidated and that John Albert Price, insolvency practitioner, and Christopher Robert Ross Horton, chartered accountant, be appointed liquidators. The Liquidators set July 16, 2008, as the last day for creditors to file their proofs of debt. Creditors and shareholders may direct their inquiries to: Cinderella NZ Limited c/o Horton Price Limited PO Box 9125, Newmarket Auckland Telephone: (09) 366 3700 Facsimile: (09) 366 3705 Email: jprice@hortonprice.co.nz HELL NORTH: Liquidators Set July 18 as Claims Filing Deadline ------------------------------------------------------------- Pursuant to Section 3, 255(2)(a) of the Companies Act 1993, the shareholders of Hell North Shore Limited fka Hell Birkenhead Limited, resolved that the company be liquidated and that John Albert Price, insolvency practitioner, be appointed liquidator. The Liquidators set July 18, 2008, as the last day for creditors to file their proofs of debt. Creditors and shareholders may direct their inquiries to: Hell North Shore Limited c/o Horton Price Limited PO Box 9125, Newmarket Auckland Telephone: (09) 366 3700 Facsimile: (09) 366 3705 Email: jprice@hortonprice.co.nz JAMPAC HOLDINGS: Commences Liquidation Proceedings -------------------------------------------------- The High Court at Wellington convened a hearing on June 30, 2008, to consider an application putting Jampac Holdings Limited, trading as Pitstop Petone, into liquidation. The application was filed on May 14, 2008, by Repco Limited. The plaintiff's address for service is at: Credit Services (NZ) Limited Level 6, 138 Victoria Street Christchurch, New Zealand Amy Marie Hutton, is the plaintiff's solicitor. KOREAN KIMCHI: Commences Liquidation Proceedings ------------------------------------------------ The High Court at Auckland convened a hearing on July 4, 2008, to consider an application putting Korean Kimchi Co. Limited, into liquidation. The application was filed on March 17, 2008, by the Commissioner of Inland Revenue The plaintiff's address for service is at: Inland Revenue Department Legal and Technical Services 5-7 Byron Avenue PO Box 33150 Takapuna, Auckland Telephone: (09) 984 1514 Facsimile: (09) 984 3116. Michael Kinlim Yan is the plaintiff's solicitor. M.J.BLOMFIELD: Liquidators Set July 11 as Claims Bar Date ---------------------------------------------------------- Pursuant to Section 3, 255(2)(a) of the Companies Act 1993, the shareholders of M.J.Blomfield Limited resolved that the company be liquidated and that John Albert Price, insolvency practitioner, be appointed liquidator. The Liquidators set July 11, 2008, as the last day for creditors to file their proofs of debt. Creditors and shareholders may direct their inquiries to: M.J.Blomfield Limited c/o Horton Price Limited PO Box 9125, Newmarket Auckland Telephone: (09) 366 3700 Facsimile: (09) 366 3705 Email: jprice@hortonprice.co.nz STANTHOM HOLDINGS: Shareholders Appoint Liquidator -------------------------------------------------- Pursuant to Section 241(2) of the Companies Act 1993, the shareholders of Stanthom Holdings Limited resolved that the company be liquidated and that Clive Ashley Johnson, insolvency practitioner of Auckland, be appointed liquidator. Creditors who were not able to file their proof of debts by July 7, 2008, were excluded from any dividend distribution. Creditors and shareholders may direct their inquiries to: C. A. Johnson, Accountant & Insolvency Practitioner PO Box 33171 Auckland Telephone: (09) 377 5536 Facsimile: (09) 377 5537 * NEW ZEALAND: Consumer Confidence Reaches Record Low ----------------------------------------------------- New Zealand's consumer confidence rating is at a record low of 82 points, down 5.6 points since mid June and 39.4 points lower than this time last year, research group Roy Morgan said. A record 64% (up 2%) of New Zealanders expect New Zealand to have bad times financially in the next 12 months, while only 16% (unchanged) look forward to good times. More New Zealanders (58% - up 8%) than ever before are feeling worse off financially since this time last year, and just 22% (down 3%) say they are better off. The highest number of New Zealanders to date (49% - up 4%) say that now is a bad time to buy major household items, and 35% (down 2%) think it�s a good time to buy. During the next five years 37% (down 1%) of New Zealanders expect bad times for New Zealand as a whole, while a record number (36%) of New Zealanders expect bad times. Although 40% (up 1%) of New Zealanders are expecting to be better off financially in the next 12 months, a record high (33%) are expecting to be worse off. Gary Morgan said �The New Zealand Roy Morgan Consumer Confidence Rating has never been so low.� �Rising petrol and fuel prices mean that New Zealanders are concerned about their personal financial situations and their country�s economy. New Zealanders are feeling worse off than last year and expecting bad times in both the next twelve months and five years.� Roy Morgan Consumer Confidence Rating was conducted from June 16 � 29, 2008, across New Zealand by telephone with a cross section of 1,119 people aged 14 and over. ===================== P H I L I P P I N E S ===================== COLLEGE ASSURANCE: To Sell Stake in Bank of Commerce to Arctic -------------------------------------------------------------- College Assurance Plans (CAP) is reportedly selling its entire shareholding in Bank of Commerce -- equivalent to 17 percent or 27 percent -- to Arctic Capital, a private equity fund owned by Packer, Philippine Star reports citing sources familiar with the transaction. Philippine Star's sources say that the sale has already been cleared by the Securities and Exchange Commission (SEC) and is just awaiting approval of the Bangko Sentral ng Pilipinas (BSP. The sources told the news agency that CAP�s stake in Bank of Commerce is equivalent to two board seats. The Philippine Star noted that the divestment forms part of CAP�s approved revised rehabilitation plan, which calls for the sale of non-core assets to raise funds to service maturing plans. About College Assurance Plans College Assurance Plans Philippines, Incorporated -- http://www.cap.com.ph/-- began in 1980 with the birth of its parent firm - College Assurance Plan. CAP has since expanded its business to the areas of Pre-need Pension, Distance Learning, Health Maintenance, Life Insurance, Information Technology, Financing, Communications and General Insurance. As of end-2003, CAP's trust fund deficiency amounted to PHP17.2 billion. According to the Securities and Exchange Commission, the Company's trust fund assets, which were managed by trustee banks, had not grown sufficiently to match its total actuarial reserve liabilities, or its net liability to plan holders worth PHP25.6 billion. CAP recorded a PHP2.8 billion loss in 2003, up from PHP403.3 million in 2002. As stated in a September 5, 2005 report by Troubled Company Reporter - Asia Pacific, CAP blamed its financial difficulties on the SEC's imposition of the Pre-need Uniform Chart of Accounts in 2002, claiming that it resulted in CAP's "bloated yet theoretical" trust fund deficiency. The SEC suspended the Company's license in 2004 due to its alleged trust fund deficiency from the application of the PNUCA. CAP filed a rehabilitation petition with the Makati Regional Trial Court last year. PICOP RESOURCES: Siguion Reyna to Quit from Board ------------------------------------------------- Picop Resources Inc. disclosed that Siguion Reyna has tendered his resignation as the company's chairman and director for health reasons. Mr. Reyna's resignation will take effect on July 31, 2008. PICOP Resources Inc. was incorporated in 1952 as Bislig Industries Inc. It was renamed Paper Industries Corporation of the Philippines in 1963 and to Picop Resources, Inc. in 1994. The company was privatized in March 1994 through a public bidding that covered 183.1 million shares representing 90% of the government's stakes. Since 1994, control of the company changed hands three more times. At present, the company is under the control of TP Holdings, Inc. The company has two wholly owned subsidiaries, namely New Paper Industries Corporation and Hinatuan Forest Plantations, Inc. The financial reports of these subsidiaries are consolidated with the financial report of the parent company Picop Resources, Inc. NPIC was incorporated in the Philippines to buy and sell pulp, paper, and paper boards of every kind and description, and the supplies used in the manufacture of thereof. In 2003, the parent company and NPIC entered into a Deed of Exchange whereby the parent company will transfer and unto NPIC all titles, rights and interests to certain assets and equipment as payment for the parent company's subscription to the latter's shares of stock. This resulted to parent company gaining control of NPIC by owning 99% of the total voting stocks effective upon issuance of the shares of stock. Hinatuan, on the other hand, was formed to engage in the production of plywood material sourced from its plantation. Hinatuan temporarily suspended operations in January 1997 and management is currently evaluating the status and prospects of the company. * * * PICOP Resources Inc. posted a net loss of PHP1.72 billion for the year ending December 31, 2007, against PHP31.385 million net loss for the year ending December 31, 2006. For the years ending 2005 and 2004, the company also incurred PHP366.574 million and PHP237.609 million net losses, respectively. * MOODY'S: Gives Stable Outlook to San Miguel & Universal Robina ---------------------------------------------------------------- Moody�s gave a "stable" outlook on San Miguel Corp. and Universal Robina along with 10 other Asian consumer products and retail firms, saying their businesses were practically assured by strong domestic demand despite turmoil in the United States and Europe, the Business World reports. According to the report, Danding Cojuangco-led San Miguel and the Gokongwei flagship won�t have cash problems and should find it easy to borrow money in the next year and a half since most earnings come from "non-discretionary food and beverage items, which provide a measure of protection in a weakening economy." The report states that Moody�s noted that San Miguel and Universal Robina have been adding new product lines partly through acquisitions, to maintain or increase margins. San Miguel received credit for developing new nonalcoholic drinks, but not for its recent diversification into energy, mining, and infrastructure, which Moody�s said "poses greater risks, and hence more downward drag on ratings", the report says. "San Miguel hopes the investments outside its core competencies will yield higher margins and growth, but its subsequent failure in two bids to acquire energy assets leaves its strategic direction uncertain. Compared to San Miguel�s traditional food and beverage activities, the proposed new business lines are also more capital intensive, have longer gestation periods, and are subject to higher potential regulatory risk", Moody's was quoted by the Business World as saying. Moody's also recounts that snack food and beverage producer Universal Robina, which has the same Ba2 credit rating, is also expanding, with the company increasing capital expenditures for 2008 by 28% to P3.8 billion, Business World says. The rating agency noted that the company booked 84% higher profits in 2007 with its food and beverage businesses growing by 7% and 50%, respectively. Business world reports that according to Moody's, [Universal Robina�s] high capex has resulted in multiple years of negative free cash flow despite solid funds from consistently growing operations, a strong balance sheet, and sound profit margins, the . Moody�s added that Asian retailers and consumer products firms have managed to pass on costs to buyers or keep margins from shrinking through innovative packaging, but "rated issuers [are expected] to maintain financial discipline and not pursue the kinds of leveraged acquisitions that occurred in previous years during a more tolerant and predictable credit and macro environment", the report adds. * Fitch Says Phil. Banks Have Improved Fin'l Profile in 2 Years --------------------------------------------------------------- Fitch Ratings has said that Philippine banks have improved their financial profile over the past two to three years, thanks to better asset quality and enhanced capitalization, though the less benign economic environment is expected to result in weaker performance with slower growth in lending and underlying profits, as well as a modest deterioration in asset quality. In the agency's opinion, these risks are largely reflected in the banks' relatively moderate to weak Individual Ratings and the Banking Systemic Risk Indicator of 'D' (which denotes low intrinsic quality or strength of the banking system). After a long period of weak credit demand, loan activity in the Philippines picked up amid the improved economic conditions of 2006-2007, spurred mainly by consumer financing, followed by corporate loans. The share of corporate loans has slightly fallen but still forms a high 75% of total loans at end-2007, compared with 13% and 12% for consumer loans and SME loans, respectively. Fee income opportunities have increased in the businesses of remittance, cash management and wealth management. More importantly, these revenues are more recurring in nature than the volatile trading gains Philippine banks used to enjoy and depend on. NPLs have fallen, mostly by way of disposals and write-offs in addition to recoveries in recent years. NPLs were 6% of total loans and had satisfactory reserve coverage of 82% at end-2007. The improved buoyancy of the equity and debt capital markets until a few months ago enabled banks to raise new capital securities to bolster their capital and to also cushion the decline in capital ratios due to Basel II. The GDP growth forecast of 5%-6% over 2008-2009 still suggests an environment that broadly supports some growth, albeit at a more moderate pace than in 2006-2007. That said, some slowdown in credit demand is likely to arise from the curtailing of consumption spending, particularly in view of rising interest rates, and increased operating costs for businesses. Together with very limited trading opportunities on government securities amid rising yields and possibly mark-to-market losses, Fitch expects this to weaken banks' profitability. NPLs too may rise amid the more challenging operating environment, stemming from rising inflation and interest rates. Foreclosed properties may also be more difficult to dispose of, and will continue to pose a threat to capital. Foreclosed properties were 40% of core equity at end-2007, with low reserve coverage of only 9%. ================ S R I L A N K A ================ UNION BANK: Fitch Holds BB+(1ka) Rating on Improved AssetQuality ---------------------------------------------------------------- Fitch Ratings has affirmed Union Bank of Colombo Ltd's National Long-term rating at 'BB+(lka)', reflecting its improved asset quality, constrained profitability and lack of a broad deposit base. The rating remains constrained by the requirement for meeting the minimum capital requirement set by Central Bank of Sri Lanka by FYE09, its profitability, and challenges to the scalability of its operations. The Outlook remains Positive. UB was restructured after posting negative equity in 2002, which involved the bank transferring LKR600 million in cash and LKR978 million of NPLs to a special-purpose vehicle, in return for a 20-year deep-discounted bond which is guaranteed by Sampath Bank PLC (SB, 'AA-(lka)'/Stable Outlook); SB was involved in the restructuring process and also made equity infusions. Thereafter, CBSL in 2006 increased the MCR for licensed commercial banks from LKR0.5 billion to LKR2.5 billion, to be met by FYE09. Several equity infusions occurred from FY03-FY07, from both existing and new shareholders which increased equity to LKR1.33 billion at FYE07 (FYE06: LKR0.75 billion). Given UB's low profitability due to the low yielding DDB (20% of interest earning assets at FYE07 and yield of 4%) and the resulting constraints in generating internal capital, Fitch notes that achieving the LKR2.5bn MCR by end-2009 would require a further equity infusion of around LKR1bn. UB's management has informed the agency that investors are committed to infusing this balance equity in Q309. UB's loan book grew by 18% yoy in FY07 (FY06: 21%) which was below the sector (FYE07: 20%). UB's existing loan book has had significant segmental concentrations to the export-import and wholesale trader segments - via overdraft facilities (39% of loans at FYE07) but risks were somewhat mitigated in view of availability of readily realisable liquid security (27% of UB's loans). Asset quality subsequent to the transfer of legacy NPLs to the SPV have been good relative to the sector and on an improving trend. NPLs/Gross loans was 3.1% at FYE07 (1.8% at Q108, 5.0% at FYE06). Due to UB's low branch penetration, deposit growth was below sector at 14% in FY07, with a noticeable shift to more expensive time deposits which was typical of the sector. Fitch notes deposit concentrations with the 20-largest depositors accounting for 12% of deposits at June 2008. This situation could improve once more branches are added to the network. Established in 1995, UB is a small commercial bank (0.4% of system assets) with 14 branches at May 2008. SB was the single largest shareholder in UB and held 16.9% of UB's issued capital at Q108. =============== X X X X X X X X =============== * BOND PRICING: For the Week June 30 -July 4, 2008 -------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA & NEW ZEALAND ----------- Ainsworth Game Technology Ltd 8.000% 12/31/09 AUD 0.65 A&R Whitcoulls Group 9.500% 12/15/10 NZD 10.95 Allco Hit Ltd 9.000% 08/17/09 AUD 19.55 Antares Energy 10.000% 10/31/13 AUD 0.51 Babcock & Brown Pty Ltd 9.010% 09/15/16 NZD 29.00 BBI Ntwrks NZ Limited 8.000% 11/30/12 NZD 34.50 Becton Property Group 9.500% 06/30/10 AUD 0.55 Bounty Industries Limited 10.000% 06/30/10 AUD 0.16 Capital Properties NZ Ltd 8.500% 04/15/09 NZD 11.00 Capital Properties NZ Ltd 8.000% 04/15/10 NZD 10.70 China Century 12.000% 09/30/10 AUD 0.66 Cit Group Au Ltd 6.000% 03/03/11 AUD 73.83 Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 4.01 Fletcher Building Ltd 7.550% 03/15/11 NZD 12.50 Heemskirk Consolidated Limited 8.000% 04/29/11 AUD 3.20 Hy-Fi Securities Ltd 8.750% 08/15/08 NZD 10.25 Hy-Fi Securities Ltd 7.000% 08/15/08 NZD 15.00 Infrastructure & Utilities 8.500% 09/15/13 NZD 9.50 Jem Warehouse 3.000% 08/01/14 AUD 71.63 LongReach Group Limited 10.000% 10/31/08 AUD 0.34 Nylex Ltd. 10.000% 12/08/09 AUD 1.51 Macquarie Comm 2.500% 08/23/13 AUD 73.85 Metal Storm Ltd 10.000% 09/01/09 AUD 0.10 Minerals Corp 10.500% 09/30/08 AUD 0.75 Publ & Broad Fin 6.280% 05/06/11 AUD 9.74 Record Funds Man 11.000% 09/01/10 AUD 46.65 Speirs Group Ltd. 13.160% 06/30/49 NZD 55.00 South Canterbury 10.430% 12/15/12 NZD 0.94 St. Laurence Prop 9.250% 07/15/01 NZD 64.87 TrustPower Ltd 8.300% 12/15/08 NZD 11.50 TrustPower Ltd 8.500% 09/15/12 NZD 8.50 TrustPower Ltd 8.500% 03/15/14 NZD 9.20 CHINA ----- Baoshan Iron 8.000% 06/20/14 CNY 74.86 China Govt Bond 4.860% 08/10/14 CNY 0.00 Cosco Shipping 0.800% 01/28/14 CNY 72.78 GD Power Develop 1.000% 05/07/14 CNY 72.87 Kangmei Pharm 0.800% 05/08/14 CNY 71.15 Tsingtao Brewery 0.800% 04/02/14 CNY 71.88 INDIA ----- Ghcl Ltd 1.000% 03/21/11 USD 67.50 India Gov't 5.870% 03/28/22 INR 72.66 India Gov't 6.970% 09/25/25 INR 69.84 India Gov't 6.010% 03/25/28 INR 68.10 India Gov't 6.130% 06/04/28 INR 69.03 India Gov't 6.170% 06/12/23 INR 73.73 INDONESIA --------- Indonesia Gov't 9.750% 05/15/37 IDR 70.61 Indonesia Gov't 9.500% 07/15/23 IDR 73.10 Indonesia Gov't 10.000% 02/15/28 IDR 74.66 JAPAN ----- Cent Japan Rail 1.310% 03/18/33 JPY 74.71 Nichielei Co Ltd 1.750% 03/31/14 JPY 59.75 Shinsei Bank Ltd. 5.625% 12/29/49 GBP 72.74 Zephyr Co Ltd 2.940% 06/21/10 JPY 40.12 KOREA ----- Korea Dev. Bank 7.310% 11/08/21 KRW 44.58 Korea Dev. Bank 7.350% 10/27/21 KRW 44.68 Korea Dev. Bank 7.400% 11/02/21 KRW 44.63 Korea Dev. Bank 7.450% 10/31/21 KRW 44.65 Korea Dev. Bank 8.450% 12/15/26 KRW 69.78 MALAYSIA -------- Advance Synergy Berhad 2.000% 01/26/18 MYR 0.04 Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.91 Berjaya Land Bhd 5.000% 12/30/09 MYR 3.66 Bumiputra-Commerce Holdings Bhd 2.500% 07/16/08 MYR 1.13 Eastern & Orient 8.000% 07/25/11 MYR 2.45 EG Industries Berhad 5.000% 06/16/10 MYR 0.25 Equine Capital 3.000% 08/26/08 MYR 1.63 Greatpac Holdings 2.000% 12/11/08 MYR 0.12 Huat Lai Resources Bhd 5.000% 03/28/10 MYR 0.30 Insas Berhad 8.000% 04/19/09 MYR 0.40 Kamdar Group Bhd 3.000% 11/09/09 MYR 0.21 Kretam Holdings Bhd 1.000% 08/10/10 MYR 1.11 Kumpulan Jetson Berhad 5.000% 11/27/12 MYR 0.50 LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.29 Media Prima Bhd 2.000% 07/18/08 MYR 1.16 Mithril Bhd 3.000% 04/05/12 MYR 0.57 Mithril Bhd 8.000% 04/05/09 MYR 0.10 Nam Fatt Corp 2.000% 06/24/11 MYR 0.35 Pelikan International 3.000% 04/08/10 MYR 1.31 Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.09 Plus Spv Bhd 2.000% 06/27/17 MYR 68.75 Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.78 Rhythm Consolidated Berhad 5.000% 12/17/08 MYR 0.10 Rubberex Corporation Berhad 4.000% 08/14/12 MYR 0.60 Silver Bird Group 1.000% 02/15/09 MYR 0.56 Southern Steel 5.500% 07/31/08 MYR 2.61 Tenaga Nasional Bhd 3.050% 05/10/09 MYR 0.84 Tradewinds Corp. 2.000% 02/08/12 MYR 0.50 Tradewinds Plantation Berhad 3.000% 02/28/16 MYR 1.20 TRC Synergy Berhad 5.000% 01/20/12 MYR 1.25 Wah Seong Corp. 3.000% 05/21/12 MYR 4.14 Wijaya Baru Global Berhad 7.000% 09/17/12 MYR 0.45 YTL Cement Bhd 4.000% 11/10/15 MYR 1.20 SINGAPORE --------- Sengkang Mall 4.880% 11/20/12 SGD 1.50 Sengkang Mall 8.000% 11/20/12 SGD 1.00 SRI LANKA --------- Sri Lanka Govt 7.500% 08/15/18 LKR 60.15 Sri Lanka Govt 6.850% 04/15/12 LKR 70.57 Sri Lanka Govt 6.850% 10/15/12 LKR 68.18 Sri Lanka Govt 7.000% 10/15/11 LKR 73.94 Sri Lanka Govt 8.500% 07/15/13 LKR 72.31 Sri Lanka Govt 8.500% 07/15/13 LKR 72.31 Sri Lanka Govt 8.500% 07/15/18 LKR 72.31 Sri Lanka Govt 8.500% 02/15/13 LKR 65.11 Sri Lanka Govt 8.500% 02/01/18 LKR 65.50 Sri Lanka Govt 7.500% 08/01/13 LKR 67.70 Sri Lanka Govt 7.500% 11/01/13 LKR 66.93 Sri Lanka Govt 7.000% 10/01/23 LKR 53.35 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. 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. *** End of Transmission ***