/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080730.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 Wednesday, July 30, 2008, Vol. 11, No. 150 Headlines A U S T R A L I A A.C.N. 067 567 702: Joint Meeting Set for August 1 AHD REGIONAL: Members and Creditors to Meet on August 1 ALLCO FINANCE: Unit's Lower Asset Valuations Hint Default ANGELO CONCRETE: Members and Creditors to Meet on August 1 BABCOCK & BROWN LTD: Inks Supply Agreement With Sydney Water BEECHWOOD HOMES: Business Sold to Cavasinni BONT INTERNATIONAL: Joint Meeting Set for August 1 BONT SKATES: Members and Creditors to Meet on August 1 CSPI PTY: Members' Final Meeting Slated for July 31 HUNTER ENVIRONMENTAL: To Declare Dividend on July 31 JVM TRAVEL: Members and Creditors to Meet on August 1 LIFT CAPITAL: Creditors Not Impressed With Proposed DOCA PARIBAS GROUP: Members' Final Meeting Set for August 5 T INTERNATIONAL: Members and Creditors to Meet on August 4 C H I N A ORIGIN AGRITECH: Enters Notes Repurchase Deal With Citadel PORTOLA PACKAGING: Moody's Junks Ratings on Restructuring Plan SEMICONDUCTOR MANUFACTURING: Posts US$45.6MM Loss for 2Q 2008 SEMICONDUCTOR MANUFACTURING: Expects to End Loss in 4th Quarter SPECTRUM: Moody's Reinstates B1 Rating to $50MM LC Facility H O N G K O N G ABLEFOAM COMPANY: Wind-Up Petition Hearing Set for September 17 ASIA PACIFIC: Court to Hear Wind-Up Petition on September 3 CFM GLOBAL: Lees and Bancroft Quit as Liquidators EXCEL INTERNATIONAL: Taps Middleton and Jamieson as Liquidators HONEST MEDICAL: Placed Under Voluntary Liquidation INGREDIENTS RESTAURANTS: Subject to Radnor's Wind-Up Petition KAI WING: Lai and Wong Quit as Liquidators KINBERLY ENGINEERING: Wind-Up Petition Hearing Set for Sept. 17 OPTECH LIMITED: Wind-Up Petition Hearing Set for September 10 I N D I A DISH TV: Net Loss Increases to Rs. 1,254.40 Mil. in 1Q 2008 GLOBAL VECTRA: Customs Seizes Two Helicopters GUJARAT STATE FINANCIAL: ASE Delists Securities GUWAHATI MUNICIPAL: Fitch Puts Nat'l LT Issuer Rating at BB(ind) MAHARASHTRA POLYBUTENES: Mr. Srivastava Ceases to be Director RAMANA ACADEMY: Financial Weakness Spurs "Grade 4" from CRISIL RUBBER PRODUCTS: Annual General Meeting Scheduled on Sept. 11 SPENTEX IND: CARE Lowers Two “BBB-” Rated Facilities to “BB” * RBI: Hikes Repo Rate by 50 bsp & Cash Reserve Ratio by 25 bsp * S&P, CRISIL: RBI Policy to Impact Medium-Term Benefits I N D O N E S I A BANK MANDIRI: Posts IDR2.61 Tril. Net Profit in 2008 First Half PERUSAHAAN LISTRIK: Obtains US$1.1BB Loan to Develop Power Plant J A P A N CABS LTD: S&P Drops Rating on Master Trust Floating Rate Notes DELPHI: Appaloosa Balks at GM Participating in Adversary Suit DELPHI: Allowed to Pursue US$2.55B Fraud Claim vs. Appaloosa DELPHI : Negotiating New or Amended Plan with GM and Committee DELPHI CORP: WTC, Panel Want Plan Confirmation Order Revoked DELPHI CORP: Wants Plan-Filing Deadline Extended to October 31 NIPPON STEEL: Partly Halts Furnace Operations Due to Plant Fire SANYO ELECTRIC: Makes Battery Packs for Nintendo's Wii Consoles * JAPAN: Moody's Says Japanese Life Insurance Industry is Stable K O R E A SAMSUNG SDI: Back Into the Black in Second Quarter 2008 * KOREA: Apartment Units 22.8% Overvalued as of 1st Qtr 2008 M A L A Y S I A NIKKO ELECTRONIC: Gets Writ of Summons From Wictronics & Texchem NIKKO ELECTRONICS: Court Grants Ex-Parte Injunction for Hirel Co SYARIKAT KAYU: Incurs MYR1.14MM Net Loss in Qtr. Ended May 31 TALAM CORPORATION: Unit Served with Wind-Up Petition by Agnes TALAM: To Defer Tabling Proposed Provision of Assistance to LLE N E W Z E A L A N D A2 CORP: Shareholders Approve Rights Issue BARRY THOMAS: Shareholders Appointed Irwin as Liquidator BRIDGECORP LTD: Two Exec. Directors Released on Bail GM HOLDINGS: Commences Liquidation Proceedings GROOVE MERCHANTS: Commences Liquidation Proceedings KTG SECRETARIAL: Placed Under Liquidation LAKEVIEW INTERNATIONAL: Appointed Liquidators MORGANS CORNER: Placed Under Liquidation NATIONAL GOLF: Appointed Parsons and Kenealy as Liquidators PASK INVESTMENTS: Placed Under Liquidation PROPERTY VENTURES: Two Hotel Businesses Placed in Receivership RO'S CLEANERS: Commences Liquidation Proceedings SECA LTD: Shareholders Appointed Merlo as Liquidator * NEW ZEALAND: Demand for New Houses Falling Since June 2007 S I N G A P O R E EON BANK: Fitch Affirms 'BB+' Subordinated Debt Rating HANOVER FINANCE: Fitch Lowers FC Issuer Default Ratings at D STATS CHIPPAC: Ng Tiong Gee Tenders Resignation T A I W A N QUANTA COMPUTER: Turns Cautious on Laptop PC Demand QUANTA COMPUTER: Bags Budget-PC Orders from Sony Corp X X X X X X X X * Asia Remains Resilient Amidst US & European Woes, S&P Reports - - - - - ================= A U S T R A L I A ================= A.C.N. 067 567 702: Joint Meeting Set for August 1 -------------------------------------------------- A.C.N. 067 567 702 Pty Ltd will hold a final meeting for its members and creditors at 10:00 a.m. on Aug. 1, 2008. During the meeting, the company's liquidator, D. M. Morgan at Clout & Associates, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: D. M. Morgan Clout & Associates Level 1, 144-148 West High Street Coffs Harbour NSW 2450 Australia Telephone: (02) 6652 3288 Facsimile: (02) 6651 9393 AHD REGIONAL: Members and Creditors to Meet on August 1 ------------------------------------------------------- AHD Regional Pty Ltd will hold a final meeting for its members and creditors at 11:30 a.m. on Aug. 1, 2008. During the meeting, the company's liquidator, R. M. Sutherland at Jirsch Sutherland, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: R. M. Sutherland Jirsch Sutherland GPO Box 4256 Sydney NSW 2001 Australia Telephone: (02) 9236 8333 Facsimile: (02) 9236 8334 Email: admin@jirschsutherland.com.au ALLCO FINANCE: Unit's Lower Asset Valuations Hint Default --------------------------------------------------------- Allco Finance Group-managed Rubicon Europe Trust Group, in light of the continued dislocation of global credit markets and the consequential negative impact on asset valuations, has commissioned an independent valuation of all of the properties in its real estate portfolio. It has also undertaken an analysis of the impact of asset revaluations on Rubicon Europe's financing arrangements. Asset Valuations A valuation of the real estate portfolio has been undertaken by CBRE and JLL(including minority interests): Portfolio/ Location Number of Date Purchase Asset Properties Acquired Price EUR(mil) ---------------------------------------------------------- Tiago Germany 3 Dec 2005 362.0 portfolio(3) Hermes Plaza Belgium 2 Jul 2006 75.9(4) Nike HQ Netherlands 1 Aug 2006 90.4 Medicent Austria 2 Mar 2007 58.0 --------------------------------------------------------- Total(3) 8 586.3 --------------------------------------------------------- Port./ Original Prior Carrying Value 6/30/2008 Asset Valuation Valuation Dec. 31, 2007 Valuation EUR(mil) EUR(mil) EUR(mil) EUR(mil) ---------------------------------------------------------- Tiago 372.9 423.0 424.4 366.5 portfolio(3) Hermes Plaza 75.9(5) 84.2 84.2 65.6(6) Nike HQ 98.9 103.7 103.7 87.2 Medicent 60.2 60.2 60.2 48.7 ----------------------------------------------------------- Total(3) 607.9 671.1 672.5 568.0 ----------------------------------------------------------- (1) Purchase price excludes acquisition costs. (2) Tiago portfolio Feb. 2007; Hermes Plaza Dec. 2007; Nike HQ Feb. 2007; Medicent Austria Jan 2007. (3) After allowing for the 5% minority interest in the Tiago portfolio, REU's ownership interest across the entire real estate portfolio is valued at EUR549.7 million at 30 June 2008 versus the carrying value of EUR651.3 million at December 31, 2007. (4) Hermes Plaza was acquired as a guaranteed development project. Purchase price includes land and subsequent construction/building costs. (5) Purchase price assumed. (6) The June 30, 2008, valuation includes EUR8.0 million for the remaining development land. In the June 30, 2008, accounts, the real estate portfolio will be valued at approximately EUR568.0 million, representing a reduction of approximately EUR104.5 million (or 15.5%) relative to the carrying value as at December 31, 2007. Impact on Financing Arrangements The responsible entity has undertaken an analysis of the impact of the asset revaluations on: -- All senior debt at the property level; -- Credit Suisse (CS) warehouse facility to Rubicon Finance Europe (RFE); -- The EUR50 million of senior notes issued by Rubicon Finance Europe II (RFE II); and -- National Australia Bank (NAB) A$150 million corporate facility to Rubicon Europe Trust I (RET I). A summary of the impact is set out below: Debt Impact of asset revaluations ---- ---------------------------- Senior debt at the No impact property level CRE loan warehouse No impact (details below) facility RFE II notes Breach of financial covenants (details below) Corporate facility No impact (details below) The specific impact on the financial covenants of the asset revaluations is: Covenant Hurdle Est. as Affected Breach at 30 June Issuer/ 2008(1) Borrower ------------------------------------------------------------- Interest Cover >= 1.35 times (4.49) RFE II Yes ratio(2) times (3) Adjusted Tangible >= A$400 A$349 RFE II Yes Net Worth million million (ATNW)(4) Debt to ATNW <= 3.75 : 1 2.65 : 1 RFE II No Tangible Net Worth (TNW)(5) >= A$250 A$443 RFE No million million Total Debt <= 5.0 : 1 2.17 : 1 RFE No to TNW Senior Facility <= 0.60 0.56 RET I No Ratio Consolidated <= 0.70 0.65 RET I No Gearing Interest cover(6) >= 3 times 3.59 times RET I No (1) Based on unaudited financial information which is subject to, inter alia, finalisation of the accounts preparation process and an audit review by the auditors. (2) Calculated as Consolidated EBITDA divided by Consolidated Interest Expense. (3) The definition for EBITDA under AIFRS includes asset write downs. Excluding the impact of the asset writedowns and realised losses on the two CRE loans that were recently sold (DD Helsinki and Ashbourne) at 73% of par, the estimated outcome would be 2.20 times. (4) Calculated as Total Assets (excluding minority interests) less Liabilities. (5) Calculated as Net Worth plus subordinated debt (up to 25%). (6) Calculated as EBIT (after debt service on property level debt, CRE warehouse and note facility) and excluding gains/losses on fair value adjustments to property investments, derivatives and unrealised FX gains and losses divided by Interest Expense under the NAB facility. According to the company, as part of REU's ongoing asset management process, an impairment review is currently being finalized in relation to REU's CRE loan portfolio, as at June 30, 2008. Accordingly, the analysis set out above does not incorporate any conclusions from this review. Reflecting primarily the impact of falling real estate valuations across Europe, it is likely this review will result in potentially significant impairments to the CRE loan portfolio which, in turn, will have an associated significant impact upon REU's financial covenants. The anticipated consequences of the asset revaluations are: * In the case of the note facility (RFE II), a breach of the financial covenants (except to the extent that such breach is remediable and remedied within a 30 day grace period) results in there being an event of default under the notes issued by RFE II, giving each noteholder the right to accelerate the entire outstanding amount of the principal evidenced by the notes held by such noteholder. To the extent that RFE II does not(following the acceleration) pay the principal amount outstanding under the notes issued by it, each noteholder can claim under the guarantees provided by RET I and RET II which guarantee repayment of the notes by RFE II. In the note facility there is no cross default provision unless insolvency proceedings (including NAB appointing a receiver under its security) are initiated in respect of RET I or RET II. * In the case of the CS facility to RFE, a failure by RET I and/or RET II to pay amounts due and payable to RFE II noteholders under the Guarantees would result in there being an event of default under the CS facility. If the event of default subsists CS may declare that all amounts owing under the CS facility are immediately due and payable, and results in RFE being unable to pay dividends to its shareholders. Enforcement of the Guarantees and an event of default under the CS facility or the RFE II note facility will each constitute an event of default under the NAB Corporate facility. If the event of default subsists NAB may declare that all amounts owing under the NAB Corporate facility are immediately due and payable, and results in RET I and RET II being unable to pay distributions to the unit holders. The company said it is currently in discussions with the noteholders of the RFE II facility and CS (the warehouse debt provider to RFE) in relation to a restructuring of the financial covenants and the financial parameters of the respective debt facilities/securities. REU is also in discussions with NAB (the lender under the Corporate Facility) in respect of replacing the 364 day revolver with a longer term facility. There can be no assurance that a successful outcome with REU's lenders will be achieved. About Allco Finance Allco Finance Group Ltd. (ASX: AFG) -- http://www.allco.com.au/ -- is an integrated global financial services business, specializing in asset origination, funds creation and funds management. The company is a fund manager of alternative assets in its core asset classes, which include aviation, rail, shipping, infrastructure, property, private equity and financial assets. Its primary focus is on commercial property, predominately completed office buildings and select development opportunities. It also purchases new and existing commercial passenger and cargo aircraft for lease to commercial airlines. In March 2007, Allco HIT Limited acquired Momentum Investment Finance Pty Limited, Allco Financial Services and International Mezzanine Funds Management (Australia) Limited. The company is a vendor of Momentum Investment Finance Pty Limited and Allco Financial Services. In July 2007, it acquired Allco Equity Partners Ltd. In December 2007, it completed the acquisition of the remaining 79.6% stake of Rubicon Holdings(Aust) Limited. * * * Published reports said that Allco is in the brink of insolvency and is currently negotiating a new business plan that will avoid putting its operations in the hands of administrators. As reported in the Troubled Company Reporter-Asia Pacific, Allco Finance Group has until July 31, 2008, to pay its AU$250 million bridge facility. Allco's managed vehicle, Rubicon American Trust, anticipated breach of financial covenants as a consequence of its asset revaluations. The Trust, citing continued dislocation of global credit markets and the consequential negative impact on asset valuations, reduced the value of its real estate portfolio as of June 30, 2008, by approximately US$97.5 million (or 7%). As reported in the Troubled Company Reporter-Asia Pacific on July 18, 2008, Rubicon agreed to sell its GSA I portfolio, a 14 property portfolio covering 3.1 million square feet, to Urban America for US$515.0 million. The sale is projected to close on September 15, 2008. It is anticipated that the net proceeds, after providing for taxes payable, will be applied to reduce Rubicon's overall borrowing. ANGELO CONCRETE: Members and Creditors to Meet on August 1 ---------------------------------------------------------- Angelo Concrete Pty Ltd will convene a final meeting for its members and creditors at 9:30 a.m. on Aug. 1, 2008. During the meeting, the company's liquidator, R. M. Sutherland at Jirsch Sutherland, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: R. M. Sutherland Jirsch Sutherland GPO Box 4256 Sydney NSW 2001 Australia Telephone: (02) 9236 8333 Facsimile: (02) 9236 8334 Email: admin@jirschsutherland.com.au BABCOCK & BROWN LTD: Inks Supply Agreement With Sydney Water ------------------------------------------------------------ Babcock & Brown Wind Partners, a Babcock & Brown Limited unit, has entered into a renewable energy supply agreement with Sydney Water, with output from the Capital wind farm contracted to deliver the renewable energy requirements of Sydney Water's desalination plant. BBW said that the renewable energy supply agreement has a term of 20 years and includes a CPI escalation clause. The Capital wind farm is the first large, utility scale wind farm to be located in New South Wales. The wind farm is expected to be operational by mid-2009 and have an installed capacity of 132.3MW with long term mean energy production of over 400GWh per annum. Miles George, Chief Executive Officer said "The supply agreement represents an attractive contract for BBW and we are very pleased to be supplying the renewable energy requirements of Sydney Water's desalination plant. As Australia's leading wind farm owner and operator, BBW remains well positioned to participate in the expected strong growth in renewable energy generation in Australia which is underpinned by the Federal Governments 20% by 2020 national renewable energy target." 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 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. BEECHWOOD HOMES: Business Sold to Cavasinni ------------------------------------------- Beechwood Homes has been sold as a going concern to Resibuildco, which is funded by Cavasinni Constructions and the Cavasinni family, the Adelaidenow reports. According to the report, Beechwood's receivers Deloitte said the business had been sold for an undisclosed amount with all assets, including existing land, buildings, contracts and copyright. The business, the report relates, will continue to trade as Beechwood. The purchase was a "logical step towards expansion" of his family business, the report quoted Beechwood's new owner, Vic Cavasinni as saying. "We have and will continue to work closely with the Office of Fair Trading and the insurers Vero to work through the needs of individual homeowners and complete their homes," Mr. Cavasinni added. All current Beechwood customers, the report says, will receive information from the new owners shortly. As reported in the Troubled Company Reporter – Asia Pacific on July 21, 2008, ABC News said Beechwood Homes -- http://www.beechwoodhomes.com.au/-- is an Australian owned family home building company that was started in the early 1980s. Beechwood's collapse affected about 300 people who were building homes and approximately 500 who had project home plans prepared by the company. BONT INTERNATIONAL: Joint Meeting Set for August 1 -------------------------------------------------- Bont International Pty Ltd will hold a final meeting for its members and creditors at 11:00 a.m. on Aug. 1, 2008. During the meeting, the company's liquidator, R. M. Sutherland at Jirsch Sutherland, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: R. M. Sutherland Jirsch Sutherland GPO Box 4256 Sydney NSW 2001 Australia Telephone: (02) 9236 8333 Facsimile: (02) 9236 8334 Email: admin@jirschsutherland.com.au BONT SKATES: Members and Creditors to Meet on August 1 ------------------------------------------------------ Bont Skates Pty Ltd will hold a final meeting for its members and creditors at 10:30 a.m. on Aug. 1, 2008. During the meeting, the company's liquidator, R. M. Sutherland at Jirsch Sutherland, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: R. M. Sutherland Jirsch Sutherland GPO Box 4256 Sydney NSW 2001 Australia Telephone: (02) 9236 8333 Facsimile: (02) 9236 8334 Email: admin@jirschsutherland.com.au CSPI PTY: Members' Final Meeting Slated for July 31 --------------------------------------------------- Keiran William Hutchison and John Raymond Gibbons, CSPI Pty Limited's estate liquidator, will meet with the company's members at 10:00 a.m. on July 31, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: Keiran William Hutchison John Raymond Gibbons Ernst & Young Level 37, 680 George Street Sydney NSW 2000 Australia Telephone: (02) 9248 5555 HUNTER ENVIRONMENTAL: To Declare Dividend on July 31 ---------------------------------------------------- Hunter Environmental Solutions Pty Ltd will declare dividend on July 31, 2008. Only creditors who where able to file their proofs of debt by July 28, 2008, were included in the company's dividend distribution. The company's liquidator is J. A. Shaw. JVM TRAVEL: Members and Creditors to Meet on August 1 ----------------------------------------------------- JVM Travel Pty Ltd will hold a final meeting for its members and creditors at 9:00 a.m. on Aug. 1, 2008. During the meeting, the company's liquidator, R. M. Sutherland at Jirsch Sutherland, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: R. M. Sutherland Jirsch Sutherland GPO Box 4256 Sydney NSW 2001 Australia Telephone: (02) 9236 8333 Facsimile: (02) 9236 8334 Email: admin@jirschsutherland.com.au LIFT CAPITAL: Creditors Not Impressed With Proposed DOCA -------------------------------------------------------- Creditors of failed margin lender Lift Capital Pty Ltd have postponed a meeting to decide whether to agree to a payout proposal by its directors that also prevents legal action against them, the Age reports. The meeting was delayed to September 15 to give creditors time to read a report that outlines the proposed 'deed of company arrangement', which they received on July 11, the Age says. The deed, the Age relates, which was put to the meeting in Sydney by administrator McGrath Nicol, is estimated to return about three cents in the dollar more to unsecured creditors than if Lift were liquidated, and over a shorter timeframe, According to The Australian Business, under the deed, Lift directors will contribute AU$1.15 million to the Lift Fund, with financier Merrill Lynch tipping in another AU$1.4 million and reducing their commission fees to about AU$1 million -- translating to an additional 3c in a dollar dividend payment to unsecured creditors. That is expected to bump up the total dividend payment to 62.8c in the dollar for unsecured creditors who are classified category three. Of the total 1019 clients, there are 324 in category three. Under a liquidation scenario, the return is expected to be 59.7c, The Australian says. The Australian relates that creditors appeared unimpressed with the DOCA proposal, instead urging the administrator to apply more pressure on Merrill Lynch. However, the Australian notes, Mr. Tony McGrath at McGrath Nicol reassured creditors it was pushing hard for the best resolution and said it was possible it could re-engage Merrill to increase its offer. Loan to Options Trader Triggers Collapse Meanwhile, the Australian Business reports that a AU$331 million loan to options trader Tony Famularo has been identified as a trigger behind the collapse of Lift Capital. The most shocking revelation to creditors at the meeting, however, the Australian Business relates, was that Lift had provided 100 per cent of the finance over Mr. Famularo's loan. According to the Australian Business, a recovery process is under way to recover AU$32 million owed by Mr. Famularo -- the remaining amount left after Merrill closed out his account. The AU$331 million portfolio represented nearly half of Lift's stock-lending book, the Australian Business says. About Lift Capital Lift Capital -- http://www.liftcapital.com.au/-- is an Australian owned, independent (non-bank owned) financial services provider, specializing in lending against structured equity products principally against listed shares and interests in managed funds. The company's products enable its clients to borrow money to invest in a wide range of assets. Lift Capital may take a mortgage over these assets to secure the loan. * * * The Troubled Company Reporter-Asia Pacific reported on April 14, 2008, that Lift Capital was placed under voluntary administration after reports questioning its viability triggered a run of investors wanting to liquidate their assets. The administrators will focus on gathering information to convey to creditors and investors. PARIBAS GROUP: Members' Final Meeting Set for August 5 ------------------------------------------------------ John Melluish, Paribas Group Australia Limited's estate liquidator, will meet with the company's members at 10:30 a.m. on Aug. 5, 2008, to provide them with property disposal and winding-up reports. The liquidator can be reached at: John Melluish Ferrier Hodgson Level 13, 225 George Street Sydney NSW 2000 Australia T INTERNATIONAL: Members and Creditors to Meet on August 4 ---------------------------------------------------------- T International Pty Ltd will hold a final meeting for its members and creditors at 11:00 a.m. on Aug. 4, 2008. During the meeting, the company's liquidator, Ozem Kassem at Cor Cordis Chartered Accountants, will provide the attendees with property disposal and winding-up reports. The company's liquidator can be reached at: Ozem Kassem Cor Cordis Chartered Accountants Level 10 76-80 Clarence Street Sydney, Australia Telephone: (02) 8221 8433 ========= C H I N A ========= ORIGIN AGRITECH: Enters Notes Repurchase Deal With Citadel ---------------------------------------------------------- Origin Agritech Limited said it entered into a Notes Repurchase Agreement on July 28, 2008, with Citadel Equity Fund Ltd, providing for the repurchase by the company from Citadel of a portion of the company's outstanding 1% Guaranteed Senior Secured Convertible Notes due 2012. The company issued the Notes to Citadel in an aggregate principal amount of US$40 million. Pursuant to the Agreement, the company will repurchase from Citadel the Notes in an aggregate principal amount of US$18.7 million for a total repurchase price of US$20.0 million payable in cash. The Note repurchase will be completed in two tranches. The company expects to purchase US$14.0 million of the Notes on July 28, 2008, and US$4.7 million of the Notes by the end of 2008. Upon the completion of the repurchases, respectively, the repurchased Notes will be cancelled. The company intends to finance the repurchase of the Notes from its cash resources. As a result of lower interest expense, the company expects the repurchase to be accretive to net earnings by approximately US$0.01 per diluted share in fiscal 2008 and US$0.06 per diluted share in fiscal 2009, on a U.S. GAAP basis. In connection with the Notes repurchase, Citadel has agreed to waive past noncompliance by the company through June 30, 2008, under certain financial covenants, and to amend a covenant, contained in the indenture for the Notes. Citadel has not agreed to waive any future defaults under the Note indenture. Investors should refer to the Form 6-K furnished by the company to the Securities and Exchange Commission for additional information regarding the Notes repurchase transaction and the status of the company's past and future compliance with the covenants contained in the Note indenture. A copy of the Notes Repurchase Agreement is included as an exhibit to the Form 6-K, and a copy of the Note indenture is filed as an exhibit to the company's Annual Report on Form 20-F for its fiscal year ended September 30, 2007 filed with the Securities and Exchange Commission. This Note repurchase provides the company with the opportunity to increase equity shareholder value while continuing to streamline its operations and fund its GMO development through internally generated resources. About Origin Agritech Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (NasdaqGM:SEED)-- http://www.originagritech.com/ -- is one of China's leading, vertically-integrated agricultural technology company specializing in agri-biotech research, development and production to supply the growing populations of China. Origin develops, grows, processes, and markets crop seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,800 first-level distributors and 65,000 second-level distributors and retailers. The hybrid seed industry is estimated at US$2 billion and that is expected to double by 2010. The company currently operates facilities in 30 of China's 32 provinces as well as Beijing. Since Origin launched its first entirely internally developed seed in 2003, the company has developed and commercialized an internally developed proprietary seed portfolio of twelve corn hybrids, twelve rice hybrids and two canola hybrids as of 2007. PORTOLA PACKAGING: Moody's Junks Ratings on Restructuring Plan -------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of Portola Packaging, Inc. to Caa3 from Caa1 and changed the outlook for the ratings to negative from stable. The company's Probability of Default Rating was lowered to Ca from Caa1. Additional instrument ratings are detailed. The downgrades were prompted by Portola's statement that it intends to file for bankruptcy, which is reflective of deteriorating business conditions, higher input costs, and liquidity constraints. The company has disclosed its intention to seek a Chapter 11 bankruptcy. Portola also disclosed that it has reached an agreement with 80% of the holders of the senior notes due 2012 to exchange these notes for common stock in the reorganized company. Minnesota investment firm Wayzata Investment Partners LLC is expected to provide a US$10 million bridge loan to fund the restructuring. Portola has faced ongoing business challenges, including weak demand, negative changes in mix and inflationary pressures, which have pressured volumes and margins. In addition, on June 30, 2008, Portola received a notice of default and reservation of rights from the lender for its US$60 million senior secured revolving credit facility. The notice was prompted by the company's June 23, 2008 filing stating that it was investigating accounting irregularities at its China subsidiaries, which may require a restatement of financial statements which would lower net income by approximately US$2.5 million. Today, Moody's took these rating actions: -- Downgraded and withdrew the US$60 million Guaranteed Senior Secured Revolver due 2009, to B3 (LGD2, 13%) from B1 (LGD 2, 11%) -- Downgraded the US$180 million Guaranteed Senior Unsecured Notes due 2012, to Ca (LGD4, 56%) from Caa2 (LGD4, 65%) -- Downgraded the Corporate Family Rating to Caa3 from Caa1 -- Downgraded the Probability of Default Rating to Ca from Caa1 -- The rating outlook was changed to negative from stable. The Ca Probability of Default Rating (PDR) reflects the very high probability of default in the near-term. Moody's believes that the overall family recovery (Loss Given Default Assessment) for Portola will be approximately 60%, which is somewhat better than the standard 50% family recovery. As a result of the slightly-higher-than-average recovery rate, the Corporate Family Rating is, at Caa3, one notch higher than the PDR. The Ca rating on the Guaranteed Senior Unsecured Notes reflects a sizable expected loss for this class of debt. The B3 rating for the Senior Secured Revolver is one notch lower than that indicated by Moody's Loss-Given-Default methodology but is believed to be more indicative of the small losses likely to be incurred by the lender as a result of the company's bankruptcy and restructuring. The proximity to default was also a factor in adjusting the Revolver rating downward to B3. Headquartered in Batavia, Illinois, Portola Packaging, Inc. designs, manufactures, and markets a broad range of products and services including tamper evident plastic closures, bottles, and related equipment and services for the dairy, fruit juice, bottled water, sports drinks, and other non-carbonated beverage markets. Portola had consolidated revenue of approximately $280 million for the 12 months ended Feb. 29, 2008. SEMICONDUCTOR MANUFACTURING: Posts US$45.6MM Loss for 2Q 2008 ------------------------------------------------------------- Semiconductor Manufacturing International Corporation disclosed consolidated results of operations for the three months ended June 30, 2008. Second Quarter 2008 Highlights: -- The company recorded a net loss of US$45.6 million in 2Q08 as they were still in the transitional stage of converting the DRAM capacity in their Beijing facility into logic production. -- Non-DRAM revenue increased by 3.8% QoQ to US$330.7 million from 1Q08 and increased by 24% YoY from 2Q07. -- Overall revenue, however, decreased to US$342.9 million in 2Q08, down 5.4% QoQ from 1Q08 and down 8.5% YoY from 2Q07 due to reduced DRAM shipments following the decision in 1Q08 to exit the commodity DRAM business. -- DRAM as a proportion of total revenue fell to 3.6% in 2Q08 from 12.1% in 1Q08. -- Logic sales from 0.13 micron full-flow and 90 nanometer technology nodes have increased by 14.5% in 2Q08 QoQ. -- Gross margin was 6.1% in 2Q08 compared to -9.0% in 1Q08 -- Simplified ASP(1) increased by 6.9% QoQ to US$853 per wafer from US$798 in 1Q08 -- Fully diluted EPS was (US$0.1227) per ADS. First Quarter 2008 Result Revision During the first quarter of 2008, the company reached an agreement with our customers to exit the commodity DRAM business. The company considered this an indicator of impairment in regard to the long-lived assets of the company's Beijing facility in accordance with SFAS 144. The company has completed its analysis, and has recorded an impairment loss of US$105.8 million. The Q108 financial have been restated as shown on page 19 of this release. Over a conference call, Dr. Richard Chang, Chief Executive Officer of SMIC, spoke with analysts about the quarterly results. "Overall, as expected, our revenue for the second quarter of 2008 declined slightly to US$342.9 million, but due to our gain in logic foundry services, we were able to significantly narrow our quarterly losses to US$45.6 million. The losses in the second quarter were primarily due to the fact that we are still transitioning from majority DRAM production to pure logic production in our Beijing facility. The process of converting DRAM capacity into logic has been successful. Quite a number of new logic tape-outs with high yield are now in customer qualification, and a few have entered into production. The company's total logic wafer shipments increased by 7.8% in the second quarter, and are expected to increase at least 30% in 2008, as compared to 2007. The ramp-up of our logic capacity remains critical to our strategy, as it will better position us to match the market demand for our services. In the second quarter, we witnessed rather strong customer demand, despite the severe macroeconomic situation in the U.S. The demand for our 8-inch fab service has been very strong consecutively every month for the second quarter. We foresee persistently increased customer demand throughout the remainder of 2008, particularly in communications and consumer applications, such as DTV, mobile TV, and wireless networking ICs, which comprise the major portion of our business. On a regional basis, revenue from North America remains solid, while revenue from the Asia Pacific region, including Mainland China and Taiwan, has seen the highest growth. We are continuing our efforts in developing advanced technology nodes as more and more of our customers have migrated to finer line width technologies. Logic output for the 0.13um and 90nm technology nodes is expected to increase around 10% in the third quarter. We have also commenced its internal 65nm library and bit cell development, and their 45nm collaboration with IBM is proceeding smoothly in accordance to schedule. We are pleased to see strong progress being made by our Chinese customers. As we continue to serve them with our 90nm technology process, we have also engaged them at the 65nm technology node. The demand has been very strong extending to the rest of the year and beyond. Moving forward, we will continue to strengthen our local advantage in China by collaborating with these local fabless design houses. We are also pleased with our profitable solar business and approved expansion plan. We will expand our solar capacity five to six times our current production output in the first half of 2009. As we continue to execute our growth plans, we believe we will continue to create value for our customers worldwide and further enhance shareholder value for the coming years." About SMIC Headquartered in Shanghai, China, Semiconductor Manufacturing International Corporation -- http://www.smics.com/ -- is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) manufacturing service at 0.35 micron to 65 nanometer and finer line technologies. SMIC has a 300- millimeter wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, a Shenzhen facility under construction, and an assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation and a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. * * * According to the company's website, the company posted a net loss of US$44, 109 million for the year ended December 31, 2006, and a net loss of US$19, 468 million for the same period in 2007. SEMICONDUCTOR MANUFACTURING: Expects to End Loss in 4th Quarter --------------------------------------------------------------- Semiconductor Manufacturing International Corp. forecasts that it will end losses in the fourth quarter on demand for customized chips used in consumer electronics, Mark Lee of Bloomberg News reports. Chief Executive Officer Richard Chang, the Bloomberg report relates, said the company expects to post a net profit in the three months ended December, reiterating an earlier forecast. According to Reuters, the company posted a loss of US$45.6 million for the second quarter, compared with a loss of US$2.05 million a year earlier, and revenue declined 8.5% to US$342.9 million. The loss was 12 cents per American Depositary Share, compared with a loss of about 1 cent a year earlier, Reuters relates. Six analysts polled by Reuters Estimates had forecast, on average, a loss of US$65.3 million. The company posted a net loss of US$44, 109 million for the year ended December 31, 2006, and a net loss of US$19, 468 million for the same period in 2007. The company, Bloomberg News notes, stopped production of dynamic random access memory chips in April to focus on making customized chips used in electronics such as music players and network equipment. About Semiconductor Manufacturing Headquartered in Shanghai, China, Semiconductor Manufacturing International Corporation -- http://www.smics.com/ -- is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) manufacturing service at 0.35 micron to 65 nanometer and finer line technologies. SMIC has a 300- millimeter wafer fabrication facility (fab) and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, a Shenzhen facility under construction, and an assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation and a 300mm wafer fab in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. SPECTRUM: Moody's Reinstates B1 Rating to $50MM LC Facility ------------------------------------------------------------ On July 22, 2008, Moody's Investors Service inadvertently withdrew its B2 rating on Spectrum Brands' $50 million synthetic letter of credit facility. Rather than being withdrawn, the synthetic LOC should have been upgraded to B1, consistent with the upgrade on Spectrum's secured credit facility. The rating action has no impact on any other rating or LGD assessment/point estimate, all of which are affirmed. This rating was reinstated and upgraded and assessment revised as: -- US$50 million synthetic letter of credit facility due 2013 to B1 (LGD 2, 13%) from B2 (LGD2, 29%); These ratings were affirmed and assessments revised: -- Corporate family rating at Caa1; -- Probability-of-default rating at Caa2; -- US$700 million 7.375% senior subordinated bonds due 2015 at Caa3 (LGD4, 62%); -- US$350 million variable rate toggle senior subordinated notes due 2013 at Caa3 (LGD4, 62%); and -- US$1.55 billion senior secured credit facility due 2013 at B1(LGD 2, 13%) Headquartered in Atlanta, Georgia, Spectrum Brands, Inc. is a global consumer products company with a diverse product portfolio that includes consumer batteries, lawn and garden chemicals, household insect control products, and electric shaving and grooming equipment. The company manufactures batteries, home and garden chemicals, and specialty pet supplies at 52 manufacturing facilities located in the U.S., Europe, Latin America, and China while rechargeable batteries, electric shaving and grooming equipment, and portable lighting products are mostly sourced from third party suppliers located in China and Japan. Spectrum reported sales of over $2 billion for the 12 months ended March 2008. =============== H O N G K O N G =============== ABLEFOAM COMPANY: Wind-Up Petition Hearing Set for September 17 --------------------------------------------------------------- The High Court of Hong Kong will hear on September 17, 2008, at 9:30 a.m., a petition to have Ablefoam Company Limited's operations wound up. The petition was filed by Success Gate Industries Limited on July 10, 2008. Success Gate's solicitors are: Deca Lin & Partners Hong Kong Diamond Exchange Building Room 901, 9th Floor Nos. 8-10 Duddell Street Central, Hong Kong ASIA PACIFIC: Court to Hear Wind-Up Petition on September 3 ----------------------------------------------------------- A petition to have Asia Pacific Systems Limited's operations wound up will be heard before the High Court of Hong Kong on September 3, 2008, at 9:30 a.m. Cheung Ka Kue filed the petition against the company on June 26, 2008. CFM GLOBAL: Lees and Bancroft Quit as Liquidators ------------------------------------------------- On July 16, 2008, John Robert Lees and Colum Sebastian Joseph Bancroft quit as liquidators of CFM Global Manufacturing Limited. The company's former Liquidators can be reached at: John Robert Lees Colum Sebastian Joseph Bancroft John Lees & Associates Limited 1904, Hong Kong Club Building 3A Chater Road Central, Hong Kong EXCEL INTERNATIONAL: Taps Middleton and Jamieson as Liquidators --------------------------------------------------------------- At an extraordinary general meeting held on July 15, 2008, the members of Excel International Holdings Limited appointed Edward Simon Middleton and Grant Andrew Jamieson as the company's liquidators. The Liquidators can be reached at: Edward Simon Middleton Grant Andrew Jamieson Duke of Windsor Social Service Building Room 202, 2nd Floor No. 15 Hennessy Road Wan Chai, Hong Kong HONEST MEDICAL: Placed Under Voluntary Liquidation -------------------------------------------------- At an extraordinary general meeting held on July 21, 2008, the shareholders of Honest Medical (H.K) Limited resolved to voluntarily liquidate the company's business. Lei Chi Weng was appointed as liquidator. The Liquidator can be reached at: Lei Chi Weng Cheung Ling Building, Flat G, 11th Floor 11 Nullah Road Kowloon, Hong Kong INGREDIENTS RESTAURANTS: Subject to Radnor's Wind-Up Petition ------------------------------------------------------------- On July 15, 2008, Radnor Limited filed a petition to have Ingredients Restaurants Limited's operations wound up. The petition will be heard before the High Court of Hong Kong on September 17, 2008, at 9:30 a.m. Radnor's solicitors are: Dominic Y.K. Lai & Co. Wing hang Finance Centre Unit B, 24th Floor No. 60 Gloucester Road Wan Chai, Hong Kong KAI WING: Lai and Wong Quit as Liquidators ------------------------------------------ On July 25, 2008, Lai Ching and Wong Yu Lau quit as liquidators of Kai Wing Estates Limited. The company's former Liquidators can be reached at: Lai Ching Wong Yu Lau Chow Sang Sang Building, 1st Floor 229 Nathan Road Kowloon, Hong Kong KINBERLY ENGINEERING: Wind-Up Petition Hearing Set for Sept. 17 --------------------------------------------------------------- The High Court of Hong Kong will hear on September 17, 2008, at 9:30 a.m., a petition to have Kinberly Engineering Company Limited's operations wound up. Bank of China (Hong Kong) Limited filed the petition against the company on July 11, 2008. Bank of China's solicitors are: Gallant Y. T. Ho & Co. Jardine House, 5th Floor No. 1 Connaught Place Central, Hong Kong OPTECH LIMITED: Wind-Up Petition Hearing Set for September 10 ------------------------------------------------------------- The High Court of Hong Kong will hear on September 10, 2008, at 9:30 a.m., a petition to have Optech Limited's operations wound up. The petitioner's solicitor is: Lovells One Pacific Place, 11th Floor 88 Queensway Hong Kong ========= I N D I A ========= DISH TV: Net Loss Increases to Rs. 1,254.40 Mil. in 1Q 2008 ----------------------------------------------------------- Dish TV India Ltd's net loss for the first quarter ended June 30, 2008, increased to Rs. 1,254.40 million from Rs. 897.64 million in the same period last year. Total sales increased to Rs. 1,644.59 million during the current quarter compared to Rs. 892.86 million in the first quarter ended June 30, 2007. For the current quarter, 4.01 lacs new subscribers were added, up from 2.85 lacs additions in the fourth quarter ended March 2008, an increase of 41%. In addition, gross operating revenue increased by 21% and subscription revenue increased by 20%. Meanwhile, gross subscriber base stands at 3.4 million as on June 30, 2008 and net subscriber base stands at 2.9 million as on June 30, 2008. Commenting on the results, Subhash Chandra, Chairman said, “Dishtv has delivered a robust performance in terms of revenue growth and market share driven by constant innovation and world- class services. We believe in foreseeing the future and have set a new benchmark in the DTH category by launching the much awaited, Box Free Offer. Going forward, the company will continue with a strategy that focuses both on subscriber growth and revenue enhancement. This is reflecting in a healthy 20% increase in subscription revenue. The revenue enhancement has come from multiple sources, new adoptions and higher rate of renewals as well as bandwidth charges that has now built into a steady stream.” Mr. Jawahar Goel, Managing Director, said, “Dishtv has maintained its leadership position through an improved market share of all DTH subscribers. Known for its innovation and unprecedented offerings Dishtv, has kept its league, by introducing the market defining consumer offer, Free Set Top Box. The Company has started the year well with robust operational and financial performance and, under the new management structure we are confident that the growth momentum would be sustained.” Box Free Scheme launched According to the company, research has showed that while awareness levels for the dishtv brand are high, the investment towards the box is a restraining factor that keeps customers from adopting into the category. The free STB offer addressed the need for the box investment to come down by introduction of a pack at which the box price was literally zero, upon lock in for a year for the maxi package. This was launched in the market with a fairly high decibel and immediately produced over 50% growth in acquisition rate. The content width has crossed the 200 mark with new channels added in the quarter like News X, 9X, NDTV Imagine, India News & CNEB. Recent Appointments In the month of June, dishtv appointed its CEO, Vinay Agarwal and COO, Salil Kapoor respectively. Vinay Agarwal brings along with him a rich and valuable experience of 28 years spanning Telecom, Consumer Durable, Consultancy Services and Engineering Industries in leading organizations across the country. Prior to joining Dish TV, Vinay was associated with Grindwell Norton Limited, a Saint-Gobain Group company, as the President- Abrasives, where he created new marketing models for the company and implemented a new project to increase the business thrust and profitability. He was also the member of the Global Management Committee for Saint-Gobain Abrasives and of the Apex Committee of Saint-Gobain India. Prior to joining Dish TV, Salil Kapoor was associated with Samsung Electronics Limited as the National Sales Head and was responsible for Consumer Electronics Revenue and Sales operations. He brings along with him a vast and valuable experience of over 17 years spanning Information Technology, Consumer Durable and Engineering Industries. About Dish TV India Limited Dish TV India Limited -- http://www.dishtvindia.in/-- is engaged in the distribution of multiple television channels and allied video/audio services to subscribers on a monthly subscription basis. * * * As reported in the TCR-AP, Dish TV India Ltd posted a net loss of Rs 4132.04 million for the year ended March 31, 2008, as compared to net loss of Rs 2518.82 million for the year ended March 31, 2007. Total Income has increased from Rs 1943.13 million for the year ended March 31, 2007 to Rs 4157.17 million for the year ended March 31, 2008. On a consolidated basis, the Group posted a net loss of Rs 4141.28 million for the year ended March 31, 2008 as compared to net loss of Rs 2400.71 million for the year ended March 31, 2007. Total Income has increased from Rs 1962.44 million for the year ended March 31, 2007 to Rs 4161.76 million for the year ended March 31, 2008. GLOBAL VECTRA: Customs Seizes Two Helicopters --------------------------------------------- Global Vectra Helicorp Ltd disclosed in a regulatory filing that the Custom Authority has seized two of its aircrafts -- VT-AZX and VT- AZY -- for alleged non compliance of the duty waivers given to non-scheduled operators. However, Global Vectra's management believes that further investigation will show these helicopters are complying the guidelines of custom and other relevant authorities and the same will be release at the earliest. Headquartered in Mumbai, India, Global Vectra Helicorp Limited -- http://www.globalhelicorp.com/-- is an offshore air- logistics company serving the oil & gas exploration and production sector. As of March 31, 2007, the Company’s total fleet size was 18 helicopters. As an airlogistics company its primary business is transportation of personnel and cargo to offshore locations across the east and west coastlines of the Indian sub-continent. The company’s main base is located at Juhu, Mumbai and the forward bases are located at Bhubanehswar, Vishakhapatnam, Rajamundry and Pondicherry. For the year ended March 31, 2008, the company incurred a net loss of Rs. 51.55 million on net sales of Rs. 1,795.37 million compared to net profit of Rs. 124.97 million on net sales of Rs. 1,493.69 in the year ended March 31, 2007. GUJARAT STATE FINANCIAL: ASE Delists Securities ----------------------------------------------- Gujarat State Financial Corporation disclosed in a regulatory filing that Ahmedabad Stock Exchange Ltd (ASE), vide their letter dated July 11, 2008, stated that the company's securities are removed from the list of the Exchange with effect from June 30, 2008. News of delisting came just few days since the company appointed Smt. Gauri Kumar, IAS, as chairperson. In May, the firm introduced a scheme of voluntary retirement to its employees to curtail expenses. The scheme will end on August 11, 2008. Gujarat State Financial Corporation -- http://gsfc.gujarat.gov.in/-- is a term lending development financial institution in the State of Gujarat. It was created under the State Financial Corporation Act, 1951 passed by Parliament. * * * The firm has been reporting consecutive quarterly net losses since June 30, 2006. For the quarter ended December 31, 2007, the company incurred a net loss of Rs. 281.40 million compared to a net loss of Rs. 272.80 million in the same period in 2006. GUWAHATI MUNICIPAL: Fitch Puts Nat'l LT Issuer Rating at BB(ind) ---------------------------------------------------------------- Fitch Ratings has assigned a National Long-term Issuer rating of 'BB(ind) to Guwahati Municipal Corporation. The Outlook on the rating is Stable. The rating is constrained by GMC's revenue deficit, limited ability to leverage its resources to provide core civic amenities, weak institutional and technical capabilities, poor financial management and reporting, and frail "cost recovery" policies. In addition, the capex plan of GMC is INR6.24 billion - a huge sum relative to its revenue. While this is a serious rating concern, Fitch does not consider this as having an adverse impact since the entire capital investment planned under Jawaharlal Nehru National Urban Renewal Mission will come as a grant from the state and central governments. Currently, GMC has no debt, nor is there any likelihood that it will incur debt in the medium term, as the entire capex will be borne by the governments. This places GMC in an advantageous position, as it gives it the chance to generate revenue without having to plan for capital investments. GMC also has the immense and unique advantage of owning, operating and recovering costs on capital, without investing in capex. However, unless GMC pursues strict cost-recovery measures, its ability to adequately operate and maintain the civic infrastructure will be constrained. Moreover, GMC's civic service delivery is poor. The water losses rate, ranging from 30% to 50%, is one of the highest in the country, while the cost recovery on water supply is a dismal 12.50%. There is virtually no sewerage system or treatment facility in the city, which consequently pollutes the river Brahmaputra. GMC has also been slow on reforms compared to other JNNURM cities; the accrual accounting and the e-governance reforms have just been initiated. Considering the backlog of GMC in the areas of user charges recovery, Fitch feels that the reforms relating to the enhancement of efficiency in the property tax collection and user charges recovery will take time before it gains momentum. GMC's finances during FY05-FY07 have substantially depended on grants (45% of total income) but the timing of receipt of the grant is uncertain. The compound annual growth rate of revenue income for FY01-FY07 is 6.93%, of which the single largest component is the property tax, which accounted for 30% of total revenue, on average during FY04-FY07, with a CAGR of 1%. Establishment expenses form about 70% of the total expenses on an average for FY01 to FY07 and grew at a CAGR of 7.68%. Guwahati is the only gateway to the north-eastern region from the rest of India. Owing to the Government of India's emphasis on the development of the north-east, the area's economic activity and related traffic is expected to rise and Fitch views that Guwahati is well-positioned to take advantage of this situation. MAHARASHTRA POLYBUTENES: Mr. Srivastava Ceases to be Director ------------------------------------------------------------- Maharashtra Polybutenes Ltd disclosed in a regulatory filing that Mr. I C Srivastava has ceased to be a special director in the company's Board. Mr. Srivastava was a special director nominee of the Board for Industrial and Financial Reconstruction. As reported in the Troubled Company Reporter-Asia Pacific on July 18, 2008, Maharashtra Polybutenes received an order dated May 11, 2004, from the BIFR sanctioning the Rehabilitation Scheme of the company granting various relief and concessions by Operating Agency viz. IDBI. In that disclosure, Maharashtra Polybutenes said that consequent to the non-renewal of a conversion contract by M/S IPCL/RIL negotiations were made with potential parties to enter into contract in order to restart the operations of the company. Pursuant to the BIFR's order, the company's Board approved the allotment of equity shares of Rs 10 each amounting to Rs 14,77,00,000 at par, to the incoming promoters of the company and their associates. On July 2, ISG Traders Limited and Duncans Industries Limited acquired 20,23,800 or 12.33% of shares in the company. For the year ended March 31, 2008, the company reported net profit of Rs.28.68 million on net sales of Rs.455.20 million compared to a net loss of Rs.143.66 million on net sales of Rs.75.16 million for the year ended March 31, 2007. About Maharashtra Polybutenes Maharashtra Polybutenes Ltd, fka Herdillia Polymers Ltd, -- http://www.maharashtrapolybutenes.com/-- manufactures polybutenes through its plant in Navi Mumbai. The company's polybutenes are marketed under brand name of “HERMAVIS”. RAMANA ACADEMY: Financial Weakness Spurs "Grade 4" from CRISIL -------------------------------------------------------------- CRISIL has assigned its maritime 'Grade 4' to the four Standards of Training, Certification and Watch-keeping (STCW) courses conducted by the Ramana Academy of Maritime Studies (Ramana Academy). Maritime grading indicates CRISIL's opinion on the extent to which an individual course meets the stated objectives of the Directorate General of Shipping (DGS). The evaluation is based on six critical components that determine the educational efficacy of the content of the courses. Courses are graded on a five-point scale, with 'Grade 1' being the highest, and 'Grade 5' the lowest. Name of the Course Grade ------------------ ----- Personal Survival Techniques (PST) Grade 4(Assigned) Elementary First Aid (EFA) Grade 4(Assigned) Fire Prevention and Fire Fighting (FPFF) Grade 4(Assigned) Personal Safety and Social Responsibilities (PSSR) Grade 4(Assigned) The grading is driven by Ramana Academy's limited track record, its lack of Training of Teachers and Assessors (TOTA) certification for some faculty members and instructors, and limited financial sustainability. These weaknesses are partially offset by Ramana Academy's adequate infrastructure. Ramana Academy has been in operations for only one years now: it was set up in January 2007, and the Ramana Trust, which runs the academy, was formed only in 2006. Moreover, two of Ramana Academy's faculty members are not certified under TOTA, an essential training programme for teachers in the marine industry. In addition, Ramana Academy is entirely dependent on Mr. Venkatesan and his family for funds. Though the institute posted a net profit of Rs.274,000 for the period ending February 28, 2008, its overall earnings are inadequate to meet any developmental expenditure. As a result, Ramana Academy will take some time before it develops financial sustainability. However, Ramana Academy has adequate infrastructure. It has all the necessary equipment, such as inflatable life rafts, life jackets, and immersion suits. The practical sessions for fire prevention and fire fighting and Personal survival techniques are held at Mariners Academy, Dombivili, and Navi Mumbai Sports Association, respectively. The institute has its own transport arrangements. The four classrooms can hold 20 students each. The institute is in the process of setting up mock-up facilities. It has acquired a 6000-square foot plot at Panvel for the purpose. About Ramana Academy Ramana Academy was established in 2007 by Mr. Venkatesan and his wife. Mr. Venkatesan has 25 years' sailing experience as communication officer and information technology manager in various flag vessels. The trust was formed in January 2006. RUBBER PRODUCTS: Annual General Meeting Scheduled on Sept. 11 ------------------------------------------------------------- Rubber Products Ltd's Board of Directors has fixed the company's 42nd annual general meeting on September 11, 2008. India-based Rubber Products Ltd – http://www.rubpro.com/-- manufactures industrial rubber products including hose pipes, rubber sheets, and molded and extruded items. The company incurred three consecutive annual net losses. For the year ended March 31, 2008, the company's net loss was Rs. 15.43 million, compared to Rs. 7.39 million in the year ended March 31, 2007 and Rs. 19.97 million in the year ended March 31, 2006. SPENTEX IND: CARE Lowers Two “BBB-” Rated Facilities to “BB” ------------------------------------------------------------ CARE has downgraded the rating of ‘CARE BBB-’ (triple B minus) to ‘CARE BB’(double B) assigned to the existing secured NCD (non-convertible debenture) issue for an outstanding (as on Mar.31, 2008) amount of Rs 38.1 cr of Spentex Industries Ltd (SIL). Further, CARE has downgraded the rating of ‘CARE BBB-’ (triple B minus) to ‘CARE BB’ (double B) assigned to the long term bank facilities of the company. Instruments with this rating are considered to offer inadequate safety for timely servicing of debt obligations. Such instruments carry high credit risk. CARE has also downgraded the rating of ‘PR 3’ (PR three)’ to ‘PR 4’ (PR four) assigned to the short term bank facilities of the company. Instruments with this rating would have inadequate capacity for timely payment of short-term debt obligations and carry very high credit risk. Such Instruments are susceptible to default. These ratings were assigned the bank facilities aggregating Rs.749.6 cr (inclusive of term loan outstanding, working capital limits, bill discounting facility and line of credit facility). The ratings revision takes into consideration declining profitability, cash losses and high financial risk profile primarily resulting from debt funded growth. The ratings also factor in unfavourable industry scenario resulting from high raw material prices and currency risk, price cycle risks associated with company’s product and exposure to currency risk in the light of high export orientation. SIL was originally promoted by RPG group as a 100% EOU (export- oriented unit) in 1991. It was taken over by CLC group in January 2004. CLC group was primarily involved in the trading of cotton yarns & fabrics, structural steel and providing textile indenting services for other manufacturers. The day-to- day affairs of the company are looked after by team of qualified professionals headed by Shri Mukund Choudhary, Managing Director. SIL’s business portfolio is spread over two segments, viz., manufacturing of cotton & synthetic yarns and trading activities. SIL, as on Mar. 31, 2007, had spindle capacity of 1.87 lakh (cotton) and 1.22 lakh (synthetic) manly built through inorganic route. Primarily debt funded growth had adversely affected the company’s financial profile, in the light declining profitability and firming up of interest rates. As per the audited (abridged) results for FY08, the overall income of the company stood at Rs.814.7 cr with net loss of Rs.34.5 cr. Higher cost of operations led by firm raw material costs, appreciated rupee and increase in interest burden led to the losses in the company. Constrained liquidity coupled with significant debt repayments in the near to medium term has adversely affected the debt servicing capability of the company. The company is expecting the inflow from part sale of assets (Ahemdabad unit) as well as fresh capital infusion to ease out the constrained cash flows in the near term. * RBI: Hikes Repo Rate by 50 bsp & Cash Reserve Ratio by 25 bsp --------------------------------------------------------------- The Reserve Bank of India presented Tuesday its first quarter review of annual statement on monetary policy for the Year 2008- 09. Highlights * Bank Rate kept unchanged. * Reverse Repo Rate under LAF kept unchanged. * Repo Rate increased by 50 basis points from 8.5 per cent to 9.00 per cent. * Cash Reserve Ratio to be increased by 25 basis points to 9.0 per cent with effect from the fortnight beginning August 30, 2008. * GDP growth projection for 2008-09 revised from the range of 8.0-8.5 per cent to around 8.0 per cent, barring domestic or external shocks. * While the policy actions would aim to bring down the current intolerable level of inflation to a tolerable level of below 5.0 per cent as soon as possible and around 3.0 per cent over the medium-term, at this juncture a realistic policy endeavour would be to bring down inflation from the current level of about 11.0-12.0 per cent to a level close to 7.0 per cent by March 31, 2009. * While there are early signs of some moderation in money supply and deposit growth, they continue to expand above the indicative projections warranting continuous vigilance and appropriate and timely policy responses. * In view of the evolving environment of heightened uncertainty in global markets and the dangers of potential spillovers to domestic markets, liquidity management will continue to receive priority in the hierarchy of policy objectives over the period ahead. * Barring the emergence of any adverse and unexpected developments in various sectors of the economy, assuming that capital flows are effectively managed, and keeping in view the current assessment of the economy including the outlook for growth and inflation, the overall stance of monetary policy in 2008-09 will broadly continue to be: -- To ensure a monetary and interest rate environment that accords high priority to price stability, well-anchored inflation expectations and orderly conditions in financial markets while being conducive to continuation of the growth momentum. -- To respond swiftly on a continuing basis to the evolving constellation of adverse international developments and to the domestic situation impinging on inflation expectations, financial stability and growth momentum, with both conventional and unconventional measures, as appropriate. -- To emphasise credit quality as well as credit delivery, in particular, for employment-intensive sectors, while pursuing financial inclusion. Domestic Developments * Real GDP growth in 2007-08 was revised upwards to 9.0 per cent by the Central Statistical Organisation (CSO) in its end-May 2008 estimates from the advance estimates of 8.7 per cent released in February 2008. * Inflation, measured by variations in the wholesale price index (WPI) on a year-on-year basis, increased to 11.89 per cent as on July 12, 2008 from 7.75 per cent as at end- March 2008 and 4.76 per cent a year ago. * On a year-on-year basis, inflation based on the consumer price index (CPI) for agricultural labourers and rural labourers increased to 8.8 per cent and 8.7 per cent, respectively, in June 2008 from 7.8 per cent and 7.5 per cent a year ago. * Year-on-year inflation based on CPI for industrial workers and urban non-manual employees stood at 7.8 per cent and 6.8 per cent, respectively, in May 2008 as compared with 6.6 per cent and 6.8 per cent a year ago. * The CPI-based inflation measures have increased in the range of 2.0-3.2 percentage points over their levels in January 2008. * The price of the Indian basket of crude oil increased from US$99.4 per barrel in March 2008 to US$ 129.8 in June 2008 and further to US$ 141.5 on July 3, 2008 before declining to US$ 121.9 on July 25, 2008. * Money supply (M3) increased by 20.5 per cent on a year-on- year basis on July 4, 2008, lower than 21.8 per cent a year ago. * The year-on-year growth in aggregate deposits of scheduled commercial banks (SCBs) at 21.7 per cent (Rs.5,89,646 crore) up to July 4, 2008 was lower than 24.6 per cent (Rs.5,36,617 crore) a year ago. * Up to July 4, 2008 non-food credit of scheduled commercial banks (SCBs) rose by 25.9 per cent (Rs.4,85,709 crore) on a year-on-year basis, higher than 24.6 per cent (Rs.3,69,109 crore) a year ago. * Public sector oil marketing companies have been provided US$4.3 billion (Rs.19,325 crore) against oil bonds purchased under the Special Market Operation (SMO) scheme up to July 25, 2008. * The total overhang of liquidity as reflected in the balances under the LAF, the MSS and the Central Government's cash balances taken together declined from an average of Rs.2,42,370 crore in April 2008 to Rs.2,12,201 crore in May 2008 and Rs.1,93,726 crore in June 2008 (with an intra-year peak of Rs.2,93,048 crore on April 8, 2008) before declining to Rs.1,45,200 crore on July 25, 2008. * Financial markets reflected the changes in liquidity conditions during the first quarter of 2008-09. * Yields in the Government securities market hardened substantially during the current financial year in both primary and secondary segments. * Deposit rates of SCBs increased, particularly at the longer end of the maturity spectrum, during the first four months of 2008-09 (up to July 25). * The equity markets witnessed a major downturn in both the primary and secondary segments during the current financial year so far, continuing the moderation that had set in by early January 2008. * Commercial banks' holdings of Government and other approved securities was 27.7 per cent of the banking system's net demand and time liabilities (NDTL) which was marginally lower than 27.8 per cent at end-March 2008 and 28.7 per cent a year ago. * Gross market borrowings of the Central Government through dated securities at Rs.72,000 crore (Rs.73,000 crore a year ago) during 2008-09 so far (up to July 25, 2008), constituted 41.0 per cent of the budget estimates (BE) whereas net market borrowings at Rs.47,982 crore (Rs.45,232 crore a year ago) constituted 48.5 per cent of the BE. External Developments * Information released by the DGCI&S indicates that exports increased by 21.7 per cent in US dollar terms during the first two months of the current financial year, as compared with 24.2 per cent in the corresponding period of the previous year. Imports rose by 31.8 per cent as compared with 37.9 per cent in the corresponding period of the previous year. * While non-POL imports moderated to 24.6 per cent from 43.8 per cent a year ago, POL imports increased by 48.6 per cent on account of the surge in crude oil prices as compared with 25.7 per cent in the corresponding period of the previous year. As a result, the merchandise trade deficit widened to US $20.7 billion during April-May 2008 from US$ 13.9 billion in the corresponding period last year. * Foreign exchange reserves declined marginally by US$2.6 billion during the current financial year so far and stood at US$307.1 billion on July 18, 2008. * During the current financial year up to July 25, 2008 the rupee depreciated by 5.4 per cent against the US dollar, by 5.0 per cent against the euro, by 5.2 per cent against the pound sterling and by 1.3 per cent against the Japanese yen. Global Developments * According to the update of World Economic Outlook (WEO) of the International Monetary Fund (IMF) released in July 2008, global real GDP growth on a purchasing power parity basis is expected to decelerate from 5.0 per cent in 2007 to 4.1 per cent in 2008 (3.7 per cent in WEO, April 2008) and further to 3.9 per cent in 2009 (3.8 per cent in WEO, April 2008). * Inflation has become a global phenomenon in recent months. Inflation pressures have raised serious concerns in emerging market economies (EMEs) across Asia, Latin America and Africa, mainly on account of supply-demand imbalances in food, fuel and commodity markets. * Prices of crude oil, which have rebounded since July 2007, increased by 60.0 per cent up to July 25, 2008 from their level a year ago. World oil markets have been particularly tight during the first half of 2008, with year-on-year growth in world oil consumption outstripping growth in non-Organisation of the Petroleum Exporting Countries (OPEC) production by over 1 million barrels per day. * In the global financial markets, sentiment has been adversely affected by concerns relating to a deep and prolonged recession in the US, somewhat alleviated by recent data on consumer sentiment, durable goods orders, consumer spending and oil prices. In addition, losses to the financial sector continue to mount in addition to rising debtdefaults. * Central banks have continued to work together and to consult regularly on liquidity conditions in financial markets. * The confluence of slowdown in growth and mounting inflation alongside financial vulnerabilities has complicated the task of monetary authorities across the world and rendered the future direction of policy setting highly uncertain. * Some central banks that have tightened their policy rates in the recent months include the ECB; the Reserve Bank of Australia; Bank Indonesia; Bank of Thailand; the Banco Central de Chile; Banco Central do Brasil and Banco de Mexico. Overall Assessment * Domestically, aggregate demand pressures appear to be strongly in evidence, exacerbated by the slack in supply response. * The upsurge in inflation during the current financial year reflects a combination of forces at work: the pass-through of international crude prices to domestic administered prices effected on June 5, 2008; inflationary pressures in addition to crude oil prices; and movements in international prices of key commodities indicating elevated upside pressures for domestic prices of a number of commodities with implications for the evolving scenario. * There are some signs of moderation in key monetary and banking aggregates in response to monetary measures, which have withdrawn liquidity from the system and tightened interest rates across the term structure. * The rates of money supply and deposit growth have started to moderate in consonance since June, edging towards the trajectory set for 2008-09. * The balancing of monetary and liquidity conditions has not, however, impacted the demand for bank credit which has accelerated on a year-on-year basis. * Downside risks to global economic prospects appear to have intensified since the Annual Policy Statement of April 2008 with slowdown of growth spreading from the US to several other advanced economies with housing and labour markets weakening sharply. * The deepening financial turbulence in major financial centres has worsened the macroeconomic outlook further by erosion of consumer and business sentiment and tightening of financing conditions with indications that a generalised credit squeeze may take hold. * The impact of the slowdown in developed economies on EMEs cannot but be adverse, but it has so far been limited by the strength of domestic demand, particularly investment, and consumption spending has remained stable. * The slowing of import demand from developed economies could, however, pose a risk to the growth outlook for these economies. * Inflation has emerged as the biggest risk to the global outlook, having risen to very high levels across the world, levels that have not been generally seen for a couple of decades. * Developed and emerging economies alike are reporting multi-year highs in inflation, driven mainly by escalating commodity prices, particularly of energy, food and metals amidst growing concerns across economies that rising food and energy prices are triggering a more generalised inflation spiral through second-round effects. * In the global financial system, while a possible crisis in global finance seems to have been averted, several vulnerabilities persist in the leading financial centres heightening the uncertainty characterising the outlook. * Central bank interventions in this context have also been extraordinary and on a scale not seen since the Great Depression, demonstrating a resolve to act decisively against threats to financial stability. * In some developed countries, the policy response to inflation has been constrained by relatively overarching concerns for financial stability in the context of the ongoing financial turmoil. * In the overall assessment, several risks looming over the global economy at the time of the Annual Policy Statement of April 2008 have either materialised or intensified with implications for every national economy, including India, warranting heightened vigilance and stress testing of the preparedness to deal with these developments. Stance of Monetary Policy for the Remaining Period of 2008-09 * Taking into account aggregate demand management and supply prospects, the projection of real GDP growth of the Indian economy in 2008-09 in the range of 8.0 to 8.5 per cent as set out in the Annual Policy Statement of April 2008 may prove to be optimistic and hence for policy purposes, a projection of around 8.0 per cent appears a more realistic central scenario at this juncture, barring domestic or external shocks. * While the policy actions would aim to bring down the current intolerable level of inflation to a tolerable level of below 5.0 per cent as soon as possible and around 3.0 per cent over the medium-term, at this juncture a realistic policy endeavour would be to bring down inflation from the current level of about 11.0-12.0 per cent to a level close to 7.0 per cent by March 31, 2009. * It is necessary to moderate monetary expansion and plan for a rate of money supply growth in the range of around 17.0 per cent in 2008-09 in consonance with the outlook on growth and inflation so as to ensure macroeconomic and financial stability in the period ahead. * Consistent with the projection of money supply, the growth in aggregate deposits in 2008-09 is now placed at around 17.5 per cent or around Rs.6,00,000 crore. * The growth of non-food credit including investments in bonds/debentures/shares of public sector undertakings and private corporate sector and CP is placed at around 20.0 per cent in 2008-09, as indicated in the Annual Policy Statement, consistent with the monetary projections. * In view of the evolving environment of heightened uncertainty, volatility in global markets and the dangers of potential spillovers to domestic equity and currency markets, liquidity management will continue to receive priority in the hierarchy of policy objectives over the period ahead. * There is headroom available with the Reserve Bank in terms of the flexibility in the deployment of instruments, complemented by prudential regulations and instruments for capital account management. * In 2008-09 so far, some banks that have expanded credit rapidly in relation to the system level growth with attendant worsening of their credit-deposit ratios are urged to review their business strategies so that they are in a position to combine longer term viable financing with profitability in operations, recognising the reality of business cycles and countercyclical monetary policy responses. * If necessary, the Reserve Bank would consider undertaking supervisory review of those select banks which are over extended in terms of their credit portfolios relative to their sources of funds. * Banks should focus on stricter credit appraisals on a sectoral basis, monitor loan to value ratios and generally ensure the health of credit portfolios on a durable basis without encountering undue asset-liability mismatches. * In view of growing off-budget liabilities and enhanced expenditures on subsidies, loan waivers and salaries in the rest of the year, fiscal developments warrant close and careful monitoring. * The overriding priority for monetary policy is to eschew any further intensification of inflationary pressures and to firmly anchor inflation expectations. * As stated in the Annual Policy Statement of April 2008, it is critical at this juncture to demonstrate on a continuing basis a determination to act decisively, effectively and swiftly to curb any signs of adverse developments in regard to inflation expectations. * In view of the above unprecedented uncertainties and dilemmas, it is important to take informed judgements with regard to the timing and magnitude of policy actions; and such judgements need to have the benefit of evaluation of incoming information on a continuous basis. * The Reserve Bank will continue with its policy of active demand management of liquidity through appropriate use of the CRR stipulations and open market operations (OMO) including the MSS and LAF, using all the policy instruments at its disposal flexibly, as and when the situation warrants. * Barring the emergence of any adverse and unexpected developments in various sectors of the economy, assuming that capital flows are effectively managed, and keeping in view the current assessment of the economy including the outlook for growth and inflation, the overall stance of monetary policy in 2008-09 will broadly continue to be: -- To ensure a monetary and interest rate environment that accords high priority to price stability, well-anchored inflation expectations and orderly conditions in financial markets while being conducive to continuation of the growth momentum. -- To respond swiftly on a continuing basis to the evolving constellation of adverse international developments and to the domestic situation impinging on inflation expectations, financial stability and growth momentum, with both conventional and unconventional measures, as appropriate. -- To emphasise credit quality as well as credit delivery, in particular, for employment-intensive sectors, while pursuing financial inclusion. Monetary Measures * Bank Rate kept unchanged at 6.0 per cent. * Reverse Repo Rate under the LAF kept unchanged at 6.00 per cent. * The fixed Repo Rate under the LAF increased by 50 basis points from 8.5 per cent to 9.0 per cent with immediate effect. * The Reserve Bank retains the option to conduct overnight or longer term repo/reverse repo under the LAF depending on market conditions and other relevant factors. The Reserve Bank will continue to use this flexibility including the right to accept or reject tender(s) under the LAF, wholly or partially, if deemed fit, so as to make efficient use of the LAF in daily liquidity management. * On a review of the current liquidity situation, it is considered desirable to increase the CRR by 25 basis points to 9.0 per cent with effect from the fortnight beginning August 30, 2008. The mid-term review of the annual policy statement for the year 2008-09 will be announced on October 24, 2008. * S&P, CRISIL: RBI Policy to Impact Medium-Term Benefits -------------------------------------------------------- Although the increase in the repo rate by 50 bps was unexpected, the firmness of its anti-inflationary stance sends a strong signal to the markets that the Reserve Bank of India (RBI) sees spiraling inflation as a far greater threat than slowing growth, Standard & Poor's and CRISIL said. Coming soon after a similar move last month, RBI's announcement leaves no one in any doubt about the central bank's determination to bring the rate of inflation down as quickly as possible. While the measures will have an adverse impact on demand through higher interest rates, which are bound to increase, given the tight liquidity conditions, the threat that rising inflationary expectations poses to medium-term growth performance is real and justifies the aggressive anti- inflationary stance taken by the RBI, even if it comes at some cost in the form of slower growth in the immediate future. Dr. Subir Gokarn, Chief Economist, Standard & Poor's Asia Pacific, said: "We have to accept the fact that a trade-off between growth and inflation in the current circumstances is inevitable. Despite the clear signs that growth is slowing, as seen in the recent industrial production numbers, it is far too early for the Reserve Bank of India to move to a neutral position, let alone reverse course. Even after all that has been done, inflationary pressures may still be aggravated by global developments but, for the moment, the current policy stance is the most appropriate one." Mr. Dharmakirti Joshi, Principal Economist, CRISIL, added: "The decision to raise the repo rate by 50 bps rather than the much- anticipated 25 bps was motivated by two factors. One, the fiscal situation, particularly on account of the loan waiver and the implementation of Pay Commission recommendations, is providing a demand stimulus, which can only intensify the inflationary pressure. Two, since domestic fuel prices do not fully reflect the global price scenario, energy prices are not helping to reduce demand to the fullest possible extent. This also adds to demand-side inflationary pressures." With high inflation rates likely to persist over the next few months, CRISIL and S&P do expect further tightening in or before the next scheduled announcement at the end of October. CRISIL and S&P's current outlook for key macroeconomic indicators for 2008-09 are: -- GDP growth at 7.8 per cent; -- average wholesale inflation for the year at 11.5-12 per cent, although this will fall sharply in March 2009; -- year-end yield on 10-year government securities in the range of 8.8-9 per cent; and -- the year-end rupee-dollar exchange rate at Rs.41.5-42/$. The policy stance will clearly have a negative bearing on the growth outlook for 2009-10, but this is an expected part of the adjustment process, which will help to preserve a favourable medium- term trend, the rating agencies noted. ================= I N D O N E S I A ================= BANK MANDIRI: Posts IDR2.61 Tril. Net Profit in 2008 First Half --------------------------------------------------------------- PT Bank Mandiri reported IDR2.61 trillion (US$283 million) in net profit in the first half of this year, up by 22 percent from IDR2.14 trillion recorded in the same period last year, Antara News reports. According to the report, Agus Martowardojo said that a cut in costs with the growing use of cheap funds made up 64 percent of its total funds contributed to the increase in net profit. The report added that the bank's outstanding credit grew sharply by IDR33.3 trillion to IDR149.6 trillion from IDR116.3 trillion, with credits for small and medium enterprises growing the sharpest by 44.62 percent. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 7, 2007, that Fitch Ratings upgraded the Individual Rating of PT Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The outlook on the national rating remains stable. At the same time, Fitch affirmed the company's Long-term foreign and local currency Issuer Default ratings at 'BB-' with a Positive Outlook, Short-term IDR at 'B' and Support Floor at 'B+'. On Oct. 19, 2007, Moody's Investors Service raised Bank Mandiri's foreign currency senior/subordinated debt ratings to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2. PERUSAHAAN LISTRIK: Obtains US$1.1BB Loan to Develop Power Plant ---------------------------------------------------------------- PT Perusahaan Listrik Negara (PLN), signed six long-term credit facilities with a combined value of IDR10 trillion (US$1.1 billion) from major domestic banks to fund its power plant projects, Antara News reports. Yogo Pratomo, PLN official who chairs the program, told Antara News that the loan facilities will be used to fund the development of coal-fired steam power plants in the town of Pacitan in Java island, Teluk Naga and Pelabuhan Ratu; Gorontalo and North Sulawesi in Sulawesi island; as well as in Riau island, East Nusa Tenggara and Central Kalimantan. The loan facilities, which have a tenor of between 10 to 13 years, were extended by Bank Negara Indonesia, Bank Rakyat Indonesia, Bank Bukopin and Bank Mega, the report says. The loans were fully guaranteed by the Ministry of Finance, Antara News notes. About Perusahaan Listrik Indonesian state utility firm PT Perusahaan Listrik Negara -- http://www.pln.co.id/-- transmits and distributes electricity to around 30 million customers, roughly 60% of Indonesia's population. The Indonesian Government decided to end PLN's power supply monopoly to attract independents to build more capacity for sale directly to consumers, as many areas of the country are experiencing power shortages. * * * The Troubled Company Reporter-Asia Pacific reported on June 18, 2007, that Standard & Poor's Ratings Services affirmed its 'BB-' foreign currency rating and 'BB' local currency rating on Indonesia's PT Perusahaan Listrik Negara (Persero). The outlook is stable. At the same time, Standard & Poor's assigned its 'BB-' issue rating to the proposed senior unsecured notes to be issued by PLN's wholly owned subsidiary, Majapahit Holding B.V. ========= J A P A N ========= CABS LTD: S&P Drops Rating on Master Trust Floating Rate Notes -------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its ratings on CABS Ltd. Master Trust Series 2005-1's class A floating rate notes and class B floating rate notes. S&P said the rating on the class A floating rate notes would remain on CreditWatch with negative implications, while the rating on the class B floating rate notes had been removed from CreditWatch with negative implications. In addition, S&P said that it had removed its ratings on CABS Ltd.'s Master Trust Series 2003-1 class A-1 fixed rate notes and class A-2 floating rate notes from CreditWatch with negative implications. The ratings on CABS Ltd.'s Master Trust Series 2003-1 notes were affirmed. The ratings on the relevant notes were initially placed on CreditWatch with negative implications on June 15, 2007. S&P subsequently lowered the ratings and kept them on CreditWatch with negative implications. On April 28, 2008, the rating agency again lowered the ratings on CABS Ltd. Master Trust Series 2005-1's class A floating rate notes and class B floating rate notes, and maintained the ratings on CreditWatch with negative implications. On the same day, S&P kept its ratings on CABS Ltd.'s Master Trust Series 2003-1 class A-1 fixed rate notes and class A-2 floating rate notes on CreditWatch with negative implications. This was because the default ratios of the underlying assets, which had surged due to refund claims on overpaid interest, had risen above expected levels based on previously available information, and also due to uncertainty in the sponsor's future policy, the status of the rehabilitation proceedings, and the restructuring plan. On Sept. 14, 2007, originator Credia Co. Ltd. filed for civil rehabilitation proceedings, which were applied on Sept. 21, 2007. Credia Co. Ltd. selected Kazaka Finance as a sponsor on April 25, 2008, and submitted a restructuring plan on May 21. (The restructuring plan was amended on June 27, 2008.) The meeting of creditors is scheduled to be held on Aug. 20, 2008. The downgrades on CABS Ltd. Master Trust Series 2005-1's class A floating rate notes and class B floating rate notes reflect uncertainty in the sponsor's future policy, which is important for the improvement of the underlying asset pool's performance. In addition, overcollateralization for the class B floating rate notes has fallen to zero. Meanwhile, S&P removed the ratings on CABS Ltd.'s Master Trust Series 2003-1 class A-1 fixed rate notes and class A-2 floating rate notes from CreditWatch because principal repayment has boosted the level of credit support for the rated tranches, although the restructuring plan has not been decided and the performance of the underlying asset pool is still weak. S&P kept the rating on CABS Ltd. Master Trust Series 2005-1's class A floating rate notes on CreditWatch with negative implications because it is focused on the results of the meeting of creditors. The rating agency considers that the approval of the restructuring plan in the meeting of creditors is important for the recovery and stability in the underlying asset pool's future performance. S&P will reexamine the possibility of removing the rating on CABS Ltd. Master Trust Series 2005-1's class A floating rate notes from CreditWatch after the results of the meeting of creditors are confirmed. The notes are ultimately secured by unsecured consumer loan receivables originated by Credia Co. Ltd. Ratings Lowered, Still on CreditWatch: CABS Ltd. Master Trust Series 2005-1 Floating rate notes due 2014 Class To From Issue amount ------------------------------------------------- A B/Watch Neg BB-/Watch Neg JPY8.7 bil. Ratings Lowered, Off CreditWatch: Class To From Issue amount ------------------------------------------------ B CCC- CCC+/Watch Neg JPY1.3 bil. Ratings Affirmed, Off CreditWatch: CABS Ltd. Master Trust Series 2003-1 Notes due 2012 Class Rating Issue amount ----------------------------- A-1 AA- JPY1.5 bil. A-2 AA- JPY8.5 bil. DELPHI: Appaloosa Balks at GM Participating in Adversary Suit ------------------------------------------------------------- A-D Acquisition Holdings, LLC, and Appaloosa Management L.P. oppose the participation of General Motors Corporation as party- in-interest with respect to Delphi Corp.'s $2,550,000,000 adversary complaint against Appaloosa and other Plan Investors. As disclosed in the Troubled Company Reporter on July 15, 2008, GM sought authority from the U.S. Bankruptcy Court for the Southern District of New York to participate in the adversary proceedings filed by Delphi Corp. against Appaloosa, Management, L.P., et al. GM wants to participate in the proceedings as a "party-in-interest." Delphi's ties with Appaloosa, et al., soured after Delphi sought funding of the US$2,825,000,000 of its US$6,100,000,000 exit debt financing facility from General Motors, its primary customer. The lenders, including GM, were ready to close April 4, but the financing agreements have been terminated after Appaloosa, et al., pulled out from their commitment to provide US$2,550,000,000 of equity financing to Delphi. Douglas P. Baumstein, Esq., at White & Case LLP, in New York, says that ADAD and AMLP anchor their opposition on GM's failure to adequately define what a "party in interest" means, given that it seeks to participate in the adversary proceeding in a limited capacity, yet it seeks rights afforded only to full parties to a proceeding without undertaking the obligations of a party. Mr. Baumstein admits that some of the relief sought by GM is acceptable, "but much of the relief it seeks goes well beyond that to which a party in interest is entitled," Mr. Baunstein says. Mr. Baumstein anticipates that at this time, GM does not seek to intervene in the proceedings, however, it seeks court authority to (i) appear before the Court on any matter arising in the Adversary Proceeding, including hearings and chamber conferences, (ii) participate in any settlement discussions, mediation sessions and arbitrations regarding the Adversary Proceeding, and (iii) participate in the discovery process, including through the review of documents produced and attendance at depositions. Mr. Baumstein argues that GM is not entitled to participate so as to fully monitor the progress and status of the Adversary Proceeding and to permit involvement in activities likely to affect or overlap with a new plan, contrary to the relief it seeks. Mr. Baumstein then cites the grounds for ADAH and AMLP's objections: (1) GM should only be permitted to appear in the litigation so long as it limits itself to the role of observer and does not duplicate effort or unduly burden the parties. It is not clear that GM is willing to limit its role, as GM seeks to participate in the action by appearing before the Court on "any matter arising in the Adversary Proceeding" including by appearing at the chambers' conferences. This right is inconsistent with the monitoring function GM purports to seek. (2) There is no basis for GM's request to participate in any settlement negotiations. GM has articulated no concrete interest or right of its own that is at stake in this proceeding. Instead, GM purports to seek participation on a limited basis in order to inform its own position in negotiations of a modified or new plan of reorganization that is not before this Court in this proceeding. (3) GM should not be permitted to seek discovery without first intervening as a party. The right to serve discovery requests is one reserved to full parties at an action, which GM is not and does not seek. Harbinger Del-Auto Investment Company Ltd. and Merrill Lynch, Pierce, Fenner & Smith Incorporated have joined in Appaloosa's objection. Both parties request the Court to deny GM's motion to participate in the adversary proceeding as party-in-interest. About GM Based in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. At March 31, 2008, GM's balance sheet showed total assets of US$145,741,000,000 and total debts of US$186,784,000,000, resulting in a stockholders' deficit of US$41,043,000,000. Deficit, at ]Dec. 31, 2007, and March 31, 2007, was US$37,094,000,000 and US$4,558,000,000, respectively. About Delphi Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 138; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI: Allowed to Pursue US$2.55B Fraud Claim vs. Appaloosa ------------------------------------------------------------ Judge Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York denied Appaloosa Management, L.P., and other investors' motions for dismissal of the US$2.55 billion lawsuits filed by Delphi Corporation against them. Delphi sued Appaloosa and seven other parties, which include Merrill Lynch, UBS Securities and Goldman Sachs, after they withdrew from their commitment to provide exit equity financing for Delphi, which was supposed to exit bankruptcy in April 2008. The David Tepper-led Appaloosa terminated their US$2.55-billion investment agreement after Delphi allowed General Motors Corp. to fund up to US$2,825,000,000 of its US$6,100,000,000 exit debt financing. Appaloosa, et al., argued that Delphi was barred under their Equity Purchase and Commitment Agreement to enter into transactions with GM outside the ordinary course of business. Appaloosa moved for the dismissal of the lawsuits, saying that Delphi cannot seek specific performance of the Plan Investors under the EPCA because Delphi itself cannot allege that it is presently ready, willing and able to perform under the EPCA. Delphi terminated its US$6-billion debt financing agreements with other investors after Appaloosa, et al., terminated the EPCA on April 4. According to The Wall Street Journal, Judge Drain ruled that Delphi can pursue its fraud claim against Appaloosa. Judge Drain, according to the report, dismissed a portion of Delphi's complaint, but he rejected most of the defendants' arguments. Delphi said that Appaloosa defrauded the Court, the Debtors and various stakeholders by affirmatively stating that it had every intention of performing its obligations to the Debtors under the EPCA when, in fact, it had no such intention. David Tepper testified before the Court that the Plan Investors will fully honor their commitments, which led to the Court's approval of Delphi's Joint Plan of Reorganization, which consummation required the US$2.55 billion financing from the Plan Investors. About Delphi Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI : Negotiating New or Amended Plan with GM and Committee -------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the bankruptcy cases of Delphi Corp. and its debtor-affiliates says it is actively negotiating with the Debtors to reach mutually acceptable modification of the current Joint Plan of Reorganization of the Debtors, following Appaloosa Management, L.P., et al.'s decision to back out from their US$2,550,000,000 exit financing agreement, and in light of the Debtors' pending lawsuit against Appaloosa, et al. Committee counsel Edward M. Fox, Esq., at K&L Gates, LLP, in New York, says that if the negotiations don't achieve the resolution, it will pursue its adversary proceeding, seeking the revocation of the order confirming the Plan, which the Committee says it accepted based upon the "promissory fraud of Appaloosa." As reported in the Troubled Company Reporter on July 15, 2008, General Motors Corp., in its request to join as party-in- interest in Delphi's adversary proceedings against Appaloosa, et al., said it is a major constituent of a new plan under negotiation together with Delphi and Creditors Committee. GM has been asked to provide major support through financial contributions, subsidies and loans, its counsel Michael P. Kessler, Esq., at Weil, Gotshal & Manges LLP, in New York, disclosed. GM also had said its interest in participating in the US$2,550,000,000 lawsuits is in the litigation's representation of a significant asset of the Debtors' estates. The terms and conditions of a modified or new plan will depend, in part, on the value ascribed to the litigation and the disposition of any recoveries from the litigation, Mr. Kessler said. About GM Based in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. At March 31, 2008, GM's balance sheet showed total assets of US$145,741,000,000 and total debts of US$186,784,000,000, resulting in a stockholders' deficit of US$41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was US$37,094,000,000 and US$4,558,000,000, respectively. About Delphi Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 138; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: WTC, Panel Want Plan Confirmation Order Revoked ------------------------------------------------------------ Wilmington Trust Company, as indenture trustee to $2,000,000,000 of notes issued by Delphi Corp. and its debtor-affiliates, and the Official Committee of Unsecured Creditors in the case asks the Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York to revoke his January 25, 2008 order confirming the Debtors' Joint Plan of Reorganization after allegations that Appaloosa Management, L.P., et al., had engaged in fraudulent conduct that would not enable Delphi to consummate the Plan. Wilmington Trust points out that the Court, in its July 18, 2007 order signing the EPCA, acknowledged that the Plan Investors' investment was an "integral . . . component of the Plan." The Debtors, however, have been unable to emerge from bankruptcy pursuant to the terms of the Plan after Appaloosa and other parties terminated their commitment to provide US$2,550,000,000 in equity exit financing pursuant to the Equity Purchase and Commitment Agreement. On behalf of WTC, Edward M. Fox, Esq., at K&L Gates LLP, in New York, argues the Plan Confirmation Order should be revoked, noting that Debtors acknowledge and concede, in their lawsuits against the Plan Investors, that the Order was procured by fraud. Mr. Fox notes the Debtors have alleged that ADAH defrauded the Court, the Debtors and various stakeholders by affirmatively stating that it had every intention of performing its obligations to the Debtors under the EPCA when, in fact, it had no such intention. Aside from several agreements that expressly obligate ADAH and the other Plan Investors to provide equity financing, Mr. Fox notes that David Tepper, the principal of ADAH and Appaloosa, at a Dec. 6, 2007 hearing to consider approval of amendments to the EPCA, testified that the Plan Investors will use their reasonable best effort to consummate the transactions. "But in the fact that, and the same thing I said before, you know, you make a handshake you make a handshake, it's what it is," Mr. Tepper said. WTC notes that the Court, in approving the EPCA and thereafter confirming the Plan, relied on Mr. Tepper's statements that ADAH fully intended to honor its commitments. Wilmington Trust is the successor indenture trustee for senior notes and debentures issued by Delphi pursuant to an Indenture dated as of April 28, 1999, all of which remain outstanding: (i) US$500,000,000 in aggregate principal amount of 6.55% Notes Due 2006; (ii) US$500,000,000 in aggregate principal amount of 6.5% Notes Due May 1, 2009; (iii) US$500,000,000 in aggregate principal amount of 6.50% Notes Due 2013; and (iv) US$500,000,000 in aggregate principal amount of 7.125% Debentures Due May 1, 2029. The Committee tells the Court that Appaloosa and its principal David Tepper has defrauded Delphi, the Committee, all other parties-in-interest, and the Court by making numerous promises to remain committed to the Plan and to use its best efforts to consummate the Plan while at the same time, covertly discussing and then executing a strategy to ensure the Plan's demise. For falsely promising to be an equity investor in the reorganized Debtors, Appaloosa has extracted from the estate and its stakeholders in excess of US$60,000,000 in fees and millions more in expense reimbursements, with a claim pending for another US$82,500,000 on account of Alternative Transaction Fee. The committee says that Appaloosa's motive was greed. The fraud occurred when Appaloosa made numerous promises that were untrue about its commitment to the Plan and the emergence of the Debtors from bankruptcy. "Known as the "king" of "vulture investors," or those who capitalize on distressed assets for financial gain, Appaloosa and Mr. Tepper in particular, has amassed a fortune by investing in companies in Chapter 11 and then realizing a healthy financial gain as a result," the Committee states. "Although such tactics could be hailed as reflecting shrewd business sense, the law stops short of sanctioning them where, as here, they are based upon fraud." As per terms of the EPCA, Appaloosa recouped another $21,200,000 in commitment fees from the Debtors, for a total of $35,000,000 in fees even before any capital had been committed. Appaloosa anticipated receiving the balance of its fees once the disclosure statement was approved, the Committee points out. To avoid having to comply with its promised commitments under the August EPCA, Appaloosa stalled by using the financial markets as an excuse to spend the next five months renegotiating the August EPCA. Appaloosa had no intention of living up to its promises - it was simply using the worsening financial markets as cover for its pre-planned exit. By inducing Delphi, its stakeholders, and the Court to rely on its promises, Appaloosa both secured the court approval, and clinched multi-million dollar payday for itself, the Committee states. About Delphi Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 138; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Wants Plan-Filing Deadline Extended to October 31 -------------------------------------------------------------- Delphi Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to extend their exclusive periods to: (a) file a plan of reorganization through and including Oct. 31, 2008; and (b) solicit acceptances of that Plan through and including Dec. 31, 2008. John Wm. Butler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, tells the Court that on April 4, 2008, the Debtors announced that although they had met the conditions required to substantially consummate the Plan, including obtaining US$6,100,000,000 of exit financing, Delphi's Plan Investors refused to participate in a closing. As disclosed in the Troubled Company Reporter on May 7, 2007, the Debtors obtained an extension, subject to certain exceptions, of their exclusive right under Section 1121 of the Bankruptcy Code to file one or more reorganization plans until 30 days after substantial consummation of the Plan and the exclusive right to solicit and obtain acceptances for those plans 90 days after substantial consummation of the plan by entry of the Order Under Section 1121(d) of the Bankruptcy Code. The Order, however, extended the Debtors' exclusive right to file a plan, as between the Debtors and the Statutory Committees, through and including Aug. 31, 2008, and the right to solicit a plan, as between the Debtors and the Statutory Committees, through and including Oct. 31, 2008, Mr. Butler recalls. On May 16, 2008, Delphi filed complaints for damages and specific performance against the Plan Investors who refused to participate in the closing that would have led to Delphi's successful emergence from Chapter 11. The Debtors nevertheless continue to work with their stakeholders to achieve their goal of emerging from Chapter 11 as soon as practicable, Mr. Butler says. Out of an abundance of caution and to ensure clarity with their stakeholders, including their customers and suppliers, the Debtors seek an extension of the Exclusive Periods to prevent any lapse in exclusivity between the Debtors and the Statutory Committees, Mr. Butler clarifies. Mr. Butler explains that a further extension of the Exclusive Periods, Mr. Butler says, is justified by the significant progress the Debtors have made toward emerging from Chapter 11. After obtaining confirmation of the First Amended Plan, the Debtors secured exit financing and met all other conditions to the effectiveness of the Plan and Investment Agreement and were prepared to emerge from Chapter 11. Since April 30, 2008, Mr. Butler notes, the Debtors have continued to make progress toward emerging from Chapter 11 in three major areas: (i) The Debtors have engaged in a reaffirmation process with respect to the business plan contained in the DisclosureStatement. That process includes an analysis, among other things, of the impact of an unprecedented increase in global commodity costs and reduction of projected North American automobile industry production volumes; (ii) The Debtors have explored their exit financing possibilities in capital markets that remain turbulent; and (iii) The Debtors have entered into complex negotiations with the Statutory Committees and General Motors Corp. with respect to potential modifications of the Plan that will enable Delphi to emerge from chapter 11 as soon as reasonably practicable, thereby moving forward so that the Debtors can focus solely on their business operations and mitigate the damages caused by the Plan Investors. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide $2,550,000,000 in equity financing to Delphi. (Delphi Bankruptcy News, Issue No. 137; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) NIPPON STEEL: Partly Halts Furnace Operations Due to Plant Fire --------------------------------------------------------------- Nippon Sheet Glass Company Limited was forced to halt some of its blast furnace operations in Yawata Works, yesterday, starting 11:00 a.m. due to a fire incident, Reuters reports. According to the report, a company spokesman said not one of the 2,950 workers obtained injuries from the fire. The plant, which makes a range of products such as bar steel, steel pipes and steel sheets, had crude steel output of about 4 million tonnes in 2007, accounting for 12% of the group's total output. The report says Nippon Steel had not decided whether to halt all production lines at the Yawata Works. A local police spokesman told the news agency that firefighters were no longer trying to put out the fire, but were instead letting the flames die out to prevent the spread of gases. "We expect it will take about 20 hours for the flames to go out. Carbon monoxide levels were safe for now, but officials were checking for other gases" he said. About Nippon Sheet Headquartered in Tokyo, Nippon Sheet Glass Company, Limited -- http://www.nsg.co.jp-- Company operates in four business divisions. Its Glass and Construction Material division manufactures, processes and sells various types of glasses, such as float plate, polished wire, heat absorbing, heat reflecting, reinforced, laminated, double-layer, vacuum, fireproof, template, mirror and ornamental glass, as well as sashes. It also supplies construction materials, and interior accessories for stores. The Information and Electronics division offers optical products, fine glass products, industrial glass products, liquid crystal display (LCD) products and others. Its Glass Fiber division is engaged in the manufacture, processing and sale of special glass fiber products, air filter-related items and others. The Others division is involved in the facility engineering and the test analysis businesses, among others. * * * Nippon Sheet continues to carry Mikuni Credit Rating's "BB" rating. SANYO ELECTRIC: Makes Battery Packs for Nintendo's Wii Consoles --------------------------------------------------------------- Sanyo Electric Co. Ltd. has launched a new rechargeable battery pack exclusive for Nintendo Wii, Associated Press reports. Sanyo's device will go on sale in Japan on Aug. 25 and is officially licensed by Nintendo, the report says. No plans for overseas sales were announced. Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * The company continues to carry Standard & Poor's Ratings' 'BB' long-term corporate credit rating. The company also carries Fitch Ratings' BB+ LT Issuer Credit and Unsecured Debt ratings. * JAPAN: Moody's Says Japanese Life Insurance Industry is Stable ---------------------------------------------------------------- The outlook for the Japanese life insurance business environment overall is stable, although companies are more vulnerable to equity market drops and declining interest rate risk, according to a new report from Moody's Investors Services. "Industry Outlook: Japanese Life Insurance" comments that although third sector insurance consists of only around 20% of total annualized premiums of policies-in-force, it comprises more than half of all total mortality/mobility gains in some cases. Given that more than 70% of core profits at the major Japanese life insurers are attributable to mortality/mobility gains, the third sector business has become vital to profit solidity. So far, the third sector business has been growing gradually, underpinning insurers' profitability as a whole. The variable annuities with minimum guarantees business weakened somewhat, due to the poor equity market and the introduction of the Financial Instruments and Exchange Law, which discourages aggressive sales of financial products by banks. That being said, minimum guarantees may be more acceptable for customers, given the current uncertainty in the equity market -- hence, sales are unlikely to fall. "What is vital to credit fundamentals will be how well product risk management works and whether pricing is consistent with underwriting risk. As with a volatile market, hedging costs are likely to be high; thus, we will carefully monitor profitability," comments Masahiko Miwa, Moody's AVP-Analyst and author of the report. As some insurers have increased their reserves for variable annuities with minimum guarantees, minimum guarantee risks were a focus of attention in FYE3/2008 results. However, equity holdings in general account assets have exhibited much higher risk, especially at the major Japanese life insurers. The domestic equity market declined by around 30% during FYE3/2008, resulting in large drops in unrealized gains on securities. With a smaller unrealized gains risk buffer, any further market drops could hurt insurers' financial fundamentals more easily than before. "The plunge in the equity markets in FYE3/2008 negatively affected insurers, but not beyond current ratings expectations. However, another decline of the same magnitude in FYE3/2009 would be beyond current ratings expectations, and thus could result in negative ratings actions" Miwa comments. "On the other hand, there were positive changes at the major Japanese life insurers. They have lengthened the duration of their bond portfolios more significantly than before, which seems to have decreased interest rate risk stemming from mismatches between bond portfolios and insurance liabilities." ========= K O R E A ========= SAMSUNG SDI: Back Into the Black in Second Quarter 2008 ------------------------------------------------------- Samsung SDI Co. Ltd. recorded its first profit after suffering losses for six consecutive quarters, thanks to better performances of rechargeable batteries and increased sales of its large-sized plasma panels, Kim Yoo-chul writes for The Korea Times. According to the Times, for the current quarter, the company recorded a net profit of KRW49.6 billion, a major turnaround from KRW138.1 billion in losses on a yearly basis and a KRW30.6 billion in losses in the previous quarter. The company last recorded a quarterly net profit in the third quarter of 2006, when it achieved KRW40 billion in net profit, the Times says. Sales during the second quarter period on a consolidated basis rose 43 percent from a year ago to reach KRW1.64 trillion, while operating profit was KRW10.8 billion over the same period, the Times adds. The Times relates that with strong confidence in its battery business, the company raised this year's sales target to KRW7.1 trillion from an initial KRW6.3 trillion. “Rechargeable batteries for IT applications sold more, helping us,” CEO Kim Soon-taek was quoted by the Times as saying. Reuters relates that Samsung SDI has suffered falling TV panel prices and tough competition from rival liquid crystal display (LCD) makers. Now, the Times says the company hopes to take advantage of its battery business to maintain the profit momentum. “The battery business will grow to reach KRW10 trillion in sales by 2013, which will propel the company's growth as a 'cash-cow' together with the next generation of organic displays,” Mr. Kim added. In June, the Times says Samsung SDI signed a deal with German- based Robert Bosch to create a 50:50 joint venture for hybrid electric vehicle batteries. Headquartered in Kyeonggi-Do, South Korea, Samsung SDI Co. Ltd. -- http://www.samsungsdi.com/-- is engaged in the manufacturing of digital display devices. The Company produces plasma display panels (PDPs), color picture tubes (CPTs) and color display tubes (CDTs) used for televisions and monitors, and liquid crystal displays (LCDs) and organic light-emitting diodes (OLEDs) used for cellular phones, personal digital assistants (PDAs) and electronic appliances. It also provides rechargeable batteries used for cellular phones and laptop computers, vacuum fluorescent displays (VFDs) used for automobiles and audios, and others. It has three domestic factories in Suwon, Busan and Cheonan. The Company has six overseas offices in Taiwan, Japan, China and the United States. * * * This concludes the Troubled Company Reporter-Asia Pacific's coverage of Samsung SDI Co. Ltd. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. * KOREA: Apartment Units 22.8% Overvalued as of 1st Qtr 2008 ------------------------------------------------------------ The current prices of apartment units in Korea are 22.8 percent overvalued as of the first quarter of this year, Shinyoung Securities Co. said in a report cited by The Korea Herald. The prices of houses are 7.9 percent overpriced than their proper values, which indicates that the prices of the country's apartment homes are nearly three times overvalued than houses after having factored in the price pickup this year, the report cited by the Herald said. According to the Herald, Shinyoung's report also showed that the price of houses in Seoul jumped an average 111.6 percent from that of year 2000 while the price of apartment units in Seoul increased 166.2 percent. Prices of houses nationwide showed a 64.3 percent increase while prices of apartment houses jumped 96.1 percent from eight years ago, the report added. =============== M A L A Y S I A =============== NIKKO ELECTRONIC: Gets Writ of Summons From Wictronics & Texchem ---------------------------------------------------------------- Nikko Electronics Bhd. has been served a Writ of Summons from: (a) Lio & Partners Advocates and Solicitors acting for Wictronics Sdn Bhd, in which it is alleged that Nikko owes MYR52,123.75; and (b) Kek Ooi & Lee Hong Advocates and Solicitors acting for Texchem Materials Sdn Bhd, in which it is alleged that Nikko owes MYR224,553.75., both for the supply of products. The company is seeking the necessary legal advice to resolve the matter. Nikko Electronics Berhad manufactures sells radio controlled toys, electronic and toy related products. The Group operates in Malaysia, United States of America, France, Japan, United Kingdom, Netherlands, Italy, Norway, Hong Kong, Denmark, Austria, Spain, Australia and other countries. * * * On June 30, 2008, Nikko Electronics Bhd. was classified as an affected listed issuer under Practice Note 1/2001 (PN1/2001) of the Listing Requirements of Bursa Malaysia Securities Berhad because it had defaulted on a bankers' acceptance facility due on June 27, 2008, for an amount of MYR1,457,084 due to Malayan Banking Berhad. Nikko is unable to repay the liability to the bank due to the difficult cash flow position as a result of the contraction in the remote-control toys industry. The company had been loss-making and its ventures to manufacture new products had also failed to make a profitable contribution to it. Nikko will also be suspending its business activities to prevent incurring further losses. NIKKO ELECTRONICS: Court Grants Ex-Parte Injunction for Hirel Co ---------------------------------------------------------------- The High Court of Pulau Pinang granted an Ex-parte injunction restraining Hirel Co. Ltd (Singapore Branch), a supplier of Nikko Electronics Bhd., from filing a winding up petition against the company until further order. Nikko previously disclosed that it has received a statutory notice of demand from Hirel demanding the payment of US$736,250, the amount owed as of June 2, 2008, for the supply of goods. Nikko Electronics Berhad manufactures sells radio controlled toys, electronic and toy related products. The Group operates in Malaysia, United States of America, France, Japan, United Kingdom, Netherlands, Italy, Norway, Hong Kong, Denmark, Austria, Spain, Australia and other countries. * * * On June 30, 2008, Nikko Electronics Bhd. was classified as an affected listed issuer under Practice Note 1/2001 (PN1/2001) of the Listing Requirements of Bursa Malaysia Securities Berhad because it had defaulted on a bankers' acceptance facility due on June 27, 2008, for an amount of MYR1,457,084 due to Malayan Banking Berhad. Nikko is unable to repay the liability to the bank due to the difficult cash flow position as a result of the contraction in the remote-control toys industry. The company had been loss-making and its ventures to manufacture new products had also failed to make a profitable contribution to it. Nikko will also be suspending its business activities to prevent incurring further losses. SYARIKAT KAYU: Incurs MYR1.14MM Net Loss in Qtr. Ended May 31 ------------------------------------------------------------- Syarikat Kayu Wangi Berhad has incurred MYR1.14 million net loss on MYR5.39 million of revenues in the second quarter ended May 31, 2008, as compared to the MYR824,000 net loss on MYR5.63 million of revenues recorded in the same quarter of 2007. As of May 31, 2008, the company's balance sheet showed MYR90.8 million of total assets and MYR74.11 million of total liabilities, resulting in a shareholders' equity of MYR16.68 million. Headquartered in Johor, Malaysia, Syarikat Kayu Wangi Berhad is principally involved in the development of residential and commercial projects. Its other activities include housing construction, production of sawn timber, manufacture of prefabricated timber rooftrusses and timber trading. The Company first made a loss in 1999 when it defaulted on its first bond payment. The company has failed to turn its finances around and has been suffering continuous losses since then. The company was classified as an affected listed issuer of the Amended PN17/2005 on May 8, 2006, since its latest audited financial statements for the year ended Nov. 30, 2005, showed that the company's shareholders' equity is MYR7,189,000, which is less than 25% of the company's issued and paid up capital. Syarikat Kayu is currently in the process of preparing its Regularization Plan. Once completed, the Requisite Announcement outlining the Regularization Plan will be made to the Bursa Securities. TALAM CORPORATION: Unit Served with Wind-Up Petition by Agnes ------------------------------------------------------------- Kenshine Corporation Sdn Bhd, a subsidiary of Talam Corporation Berhad, has been served with a wind-up petition by Agnes Hor Po Lian. Agnes Hor alleges that Kenshine is indebted with a sum of MYR55,408.20 together with interest of 8% per annum and the cost of MYR3,882. Kenshine had filed an injunction to injunct the Petitioner's solicitors from proceeding with the winding-up as it has turned down Kenshine's offer to pay them the judgment sum of MYR8,584.52 together with interest and cost as per the actual liquidated ascertained damages payable under clause 20 of the sale and purchase agreement in accordance with Schedule G of the Housing Developers' Act, 1966 and the balance would be paid upon the final outcome of Kenshine's appeal. The Petitioner's solicitors had obtained judgment on April 7, 2006, in the Kuala Lumpur Sessions Court for the LAD of MYR34,815 together with interest of 8% per annum on MYR34,815.00 from April 1, 2001, to full settlement and cost of MYR3,882. Kenshine is not a major subsidiary of Talam and the company do not foresee the amount claimed to have material financial nor operational impact on the Group. Headquartered in Kuala Lumpur, Malaysia, Talam Corporation Berhad -- http://www.talam.com.my/-- is principally engaged in property development. Its other activities include trading building materials, manufacturing of ready mixed concrete, provision for higher educational programs, development and management of hotel, golf and country club horticulturists, agriculturists and landscaping designers and contractors and investment holding. Operations of the group are carried out in Malaysia and China. The Troubled Company Reporter-Asia Pacific reported on Sept. 11, 2006, that based on the Audited Financial Statements of Talam Corporation for the financial year ended Jan. 31, 2006, the Auditors Ernst & Young were unable to express their opinion on the Company's Audited Accounts. As such, the Company is an affected listed issuer of the Amended Practice Note 17 category. In accordance with PN 17, the company is required to submit and implement a plan to regularize its financial condition. TALAM: To Defer Tabling Proposed Provision of Assistance to LLE ---------------------------------------------------------------- Talam Corporation Berhad will defer the tabling of the proposed provision of financial assistance to Larut Leisure Enterprise (Hong Kong) Limited (LLE), a 49.99%-associated company of Talam, at an extraordinary general meeting to be convened for the shareholders' approval, as LLE is currently deliberating and finalizing the principal terms and conditions with its potential financiers. However, Talam will proceed to table the ratification of proposed provision of Financial Assistance in the form of Proportionate Corporate Guarantee by Talam amounting to MYR68 million pursuant to the Credit Facilities granted to Cekap Tropikal Sdn Bhd, a 49.99%-associated company of Talam. The company has appointed Messrs. FHMH Corporate Advisory Sdn Bhd as the independent adviser to advise the minority shareholders of Talam on the Proposed Ratification. Headquartered in Kuala Lumpur, Malaysia, Talam Corporation Berhad -- http://www.talam.com.my/-- is principally engaged in property development. Its other activities include trading building materials, manufacturing of ready mixed concrete, provision for higher educational programs, development and management of hotel, golf and country club horticulturists, agriculturists and landscaping designers and contractors and investment holding. Operations of the group are carried out in Malaysia and China. The Troubled Company Reporter-Asia Pacific reported on Sept. 11, 2006, that based on the Audited Financial Statements of Talam Corporation for the financial year ended Jan. 31, 2006, the Auditors Ernst & Young were unable to express their opinion on the Company's Audited Accounts. As such, the Company is an affected listed issuer of the Amended Practice Note 17 category. In accordance with PN 17, the company is required to submit and implement a plan to regularize its financial condition. ==================== N E W Z E A L A N D ==================== A2 CORP: Shareholders Approve Rights Issue ------------------------------------------ A2 Corporation Limited said that underwriting of the previously announced rights issue was formally approved by shareholders at the Special Meeting held on July 18, 2008. This rights issue will be fully underwritten by Mountain Road Investments Limited (MRI), the majority shareholder of A2C. Anthony Lawler, CEO of A2C said that the full underwriting by the company's majority shareholder is a reflection of MRI's long-term confidence in A2C. "Our recent sales increase in our largest market Australia, our upcoming South Korean launch and our test market in the US provides us with an exciting next 12 months ahead". The 3 for 4 renounceable rights issue of ordinary shares to all New Zealand resident shareholders, at an offer price of 10 cents per share, will raise net proceeds of approximately NZ$10.8 million. The net proceeds of the offer will be used to retire A2C's bank debt and provide for working capital. Mr. Lawler added that the rights issue will incorporate an over- subscriptions facility which will allow shareholders to submit applications for shares in excess of their rights entitlements. "We felt that it was important to provide the facility for our shareholders to potentially take up more than their pro-rata rights issue," Mr. Lawler said. The prospectus was registered with the Companies Office on July 22, 2008. Shareholders will receive a copy of the offer document within the next week. The company said shareholders who do not wish to participate in the issue can sell their rights, which will be separately tradable on the NZAX under code ATMRC. The trading period will be from July 28 to Aug. 20, 2008, with the offer closing on Aug. 22, 2008. As reported in the Troubled Company Reporter – Asia Pacific on July 7, 2008, A2 Corporation said it will raised net proceeds of approximately NZ$10.8 million through a 3 for 4 renounceable rights issue of ordinary shares to all shareholders, at an offer price of 10 cents per share. The company said that the net proceeds of the offer will be used to reduce its bank debt and provide for working capital. Waivers have been granted by NZX and The Takeovers Panel to permit this sub-underwriting. About A2 Corporation New Zealand-based A2 Corporation Ltd. (NZAX: ATM) -- http://www.a2corporation.com/-- is engaged in the sale and production of beta-casein A2 milk products. The company owns and licenses intellectual property that enables the identification of cattle for the production and subsequent marketing of A2 Milk. a2 milk is naturally produced to contain maximum amounts of a milk protein variant that is associated by a number of studies with potential benefits in some individuals. A2 Corporation Ltd receives royalty income from sales of A2 Milk products and testing for A2 cattle, and shares in the profits or losses of associates and subsidiaries formed for those purposes. * * * The company suffered consecutive net losses of NZ$6.3 million and NZ$5.08 million for the years ended March 31, 2008 and 2007, respectively. BARRY THOMAS: Shareholders Appointed Irwin as Liquidator -------------------------------------------------------- Pursuant to Section 241(2)(a) of the Companies Act 1993, the shareholders of Barry Thomas Antiques Limited has appointed Lyle Richmond Irwin, chartered accountant of Auckland, as liquidator of the company. Only creditors who were able to file their proofs of debt by July 18, 2008, were included in the company's dividend distribution. Creditors and shareholders may direct their inquiries to: Prince & Partners PO Box 3685 Auckland 1001 Telephone: (09) 379 5324 Facsimile: (09) 307 0778 Email: office@prince.co.nz BRIDGECORP LTD: Two Exec. Directors Released on Bail ---------------------------------------------------- The executive directors of Bridgecorp Ltd. have been granted bail after appearing in the Auckland District Court yesterday morning, Mitchell Hall of The National Business Review reports. The executives are facing charges under the Securities Act and the Companies Act, particularly with making a false statement to the trustee for the debenture holders when they signed a directors' certificate on April 30, 2007. According to the Business Review, bail was not opposed for both Messrs. Rodney Petricevic and Robert Roest, although Mr. Petricevic has to surrender his passport. Neither man wished to comment on the allegations and would not say if they would defend the charges, the report says. As reported in the Troubled Company Reporter – Asia Pacific on June 25, 2008, the New Zealand Herald said the Registrar of Companies' National Enforcement Unit carried out the prosecution of Messrs. Petricevic and Roest. About Bridgecorp New Zealand-based Bridgecorp was placed in receivership on July 2, 2007, after failing to pay principal due to debenture holders. John Waller and Colin McCloy, partners at PricewaterhouseCoopers, were appointed as receivers. The company owes around 1,800 debenture holders, which liquidators estimate hold approximately NZ$500 million. GM HOLDINGS: Commences Liquidation Proceedings ---------------------------------------------- The High Court at Hamilton held a hearing on July 28, 2008, to consider an application putting GM Holdings (NZ) Ltd. into liquidation. The application was filed on May 26, 2008, by Te Rapa Outlet Centre Limited. The plaintiff's address for service is at: Blank Singh & Associates Level 15, Rifleman Tower 120 Albert Street Auckland Postal Address: PO Box 5644 Wellesley Street, Auckland Telephone: (09) 909 4440 Facsimile: (09) 909 4441. P. H. Blank is the plaintiff's solicitor. GROOVE MERCHANTS: Commences Liquidation Proceedings --------------------------------------------------- The High Court at Auckland convened a hearing on July 18, 2008, to consider an application putting Groove Merchants Limited into liquidation. The application was filed on March 20, 2008, by Jands Electronics (NZ) Limited. The plaintiff's address for service is at: Craig Griffin & Lord 187 Mt Eden Road Mt Eden, Auckland Postal Address: PO Box 9049 Newmarket, Auckland C. N. Lord is the plaintiff's solicitor. KTG SECRETARIAL: Placed Under Liquidation ----------------------------------------- Pursuant to Section 255(2) of the Companies Act 1993, the shareholders of KTG Secretarial Services Limited fka Office Elves Group Limited resolved that the company be liquidated and appointed Grant Bruce Reynolds, as liquidator. Only creditors who were able to file their proofs of debt by July 20, 2008, were included in the company's dividend distribution. Creditors and shareholders may direct their inquiries to: Grant Reynolds Insolvency Practitioners PO Box 259059 Greenmount, Auckland Telephone: (09) 526 0743 Facsimile: (09) 526 0748 LAKEVIEW INTERNATIONAL: Appointed Liquidators --------------------------------------------- Pursuant to Section 255(2)(a) of the Companies Act 1993, Dennis Clifford Parsons and Katherine Louise Kenealy were appointed as liquidators of Lakeview International Golf Resort Limited on June 16, 2008. The Liquidators can be reached at: Indepth Forensic Limited PO Box 278 Hamilton Telephone: (07) 957 8674 Website: www.indepth.co.nz MORGANS CORNER: Placed Under Liquidation ---------------------------------------- Pursuant to Section 255(2) of the Companies Act 1993, the shareholders of Morgans Corner Winery Limited resolved that the company be liquidated and appointed Grant Bruce Reynolds, as liquidator. Only creditors who were able to file their proofs of debt by July 20, 2008, were included in the company's dividend distribution. Creditors and shareholders may direct their inquiries to: Grant Reynolds Insolvency Practitioners PO Box 259059 Greenmount, Auckland Telephone: (09) 526 0743 Facsimile: (09) 526 0748 NATIONAL GOLF: Appointed Parsons and Kenealy as Liquidators ----------------------------------------------------------- Pursuant to Section 255(2)(a) of the Companies Act 1993, Dennis Clifford Parsons and Katherine Louise Kenealy were appointed as liquidators of The National Golf Club Limited on June 16, 2008. The Liquidators can be reached at: Indepth Forensic Limited PO Box 278 Hamilton Telephone: (07) 957 8674 Website: www.indepth.co.nz PASK INVESTMENTS: Placed Under Liquidation ------------------------------------------ Pursuant to Section 255(2) of the Companies Act 1993, the shareholders of Pask Investments Limited resolved that the company be liquidated and appointed Kevin John Gilligan, of Auckland, as liquidator. Only creditors who were able to file their proofs of debt by July 18, 2008, were included in the company's dividend distribution. Creditors and shareholders may direct their inquiries to: Kevin John Gilligan PO Box 26022 Epsom, Auckland 1344 Telephone: (09) 834 4486 Facsimile: (09) 834 4990 Email: kgill@ihug.co.nz PROPERTY VENTURES: Two Hotel Businesses Placed in Receivership -------------------------------------------------------------- Two more companies of embattled entrepreneur Dave Henderson have been placed in receivership at the request of its project financiers, the Otago Daily Times reports. According to the Daily, the Living Space hotels in Dunedin, which operates under Mr. Henderson's company Castle St Ventures and another in Invercargill, under Tay Ventures, were placed in the hands of Auckland receivers from accountancy firm Grant Thornton. Auckland financiers Equitable Group placed the two hotel companies in receivership, owing an undisclosed sum, for payment defaults, the Daily cited receiver Tim Downes as saying. Meanwhile, the report says Mr. Downes declined to give further details until the receivers' first report next month. About Property Ventures New Zealand-based Property Ventures Limited -- http://www.propertyventures.co.nz/-- is real estate development and investment company. RO'S CLEANERS: Commences Liquidation Proceedings ------------------------------------------------ The High Court at Wellington convened a hearing on July 7, 2008, to consider an application putting Ro's Cleaners Limited into liquidation. The application was filed on June 5, 2008, by Steam Hire and Service (2006) Limited. The plaintiff's address for service is at: Peter C. Gilbert Dransfield House 335 Willis Street (PO Box 2420) Wellington Telephone: (04) 385 2507 Facsimile: (04) 385 2505 Peter C. Gilbert is the plaintiff's solicitor. SECA LTD: Shareholders Appointed Merlo as Liquidator ---------------------------------------------------- Pursuant to Section 241 (2)(a) of the Companies Act 1993, the shareholders of Seca Limited fka New Zealand Seniors Card Limited has appointed Robert Laurie Merlo, insolvency practitioner of Auckland, as liquidator of the company. Only creditors who were able to file their proofs of debt by July 17, 2008, were included in the company's dividend distribution. Creditors and shareholders may direct their inquiries to: Merlo Burgess & Co. Limited PO Box 51486 Pakuranga, Auckland Telephone: (09) 520 7101 Facsimile: (09) 529 1360 Email: merloburgess@xtra.co.nz * NEW ZEALAND: Demand for New Houses Falling Since June 2007 ------------------------------------------------------------ Building consent statistics show the trend for the number of new housing units has been declining since June 2007, Statistics New Zealand said. There were 1,362 new housing units authorized in June 2008, the lowest monthly number since January 2001. In 15 of New Zealand's 16 regions, fewer new housing units were authorised in June 2008 compared with June 2007, while Tasman authorised the same number. Residential building consents issued in June 2008 were valued at NZ$455 million, down NZ$236 million from June 2007. This month's total is the lowest since April 2006. Non-residential building consents issued in June 2008 were valued at NZ$313 million, down NZ$69 million from June 2007. For the year ended June 2008, the value of consents issued for residential buildings fell NZ$458 million, while non-residential buildings rose NZ$298 million. ================= S I N G A P O R E ================= EON BANK: Fitch Affirms 'BB+' Subordinated Debt Rating ------------------------------------------------------ Fitch Ratings has affirmed Malaysia-based EON Bank's Long-term foreign currency Issuer Default Rating at 'BBB-', Short-term IDR at 'F3', Individual rating at 'C/D', Support rating at '3', Support Rating Floor at 'BB' and subordinated debt rating at 'BB+'. The Outlook is Stable. EON Bank's ratings reflect its below-average profitability and less diversified business profile compared with higher-rated and better-performing Malaysian banks, but also take into account its satisfactory balance sheet strength. Although the bank's asset quality and/or profitability may be affected due to weaker economic outlook and increased uncertainty in the domestic political environment, the Outlook on balance remains Stable and the prospects of a rating downgrade are low at this stage. Given higher loan loss provisions since 2006, EON Bank's ROA stayed low at 0.6% in 2007 (2005: 0.8%), and considerably below the system average of 1.1%. However, loan loss reserve coverage for NPLs has improved to 62% at end-Q108 (end-2005: 45%), albeit still below the industry average of 77%. The bank's NPLs were relatively unchanged at MYR1.9 billion at end-2007 compared with end-2006, but the net NPL formation rate increased from 0.6% to 1.1% in 2007 and is likely to increase in 2008 as the credit environment has become less benign although it is less vulnerable to lumpy NPLs given the high proportion of retail loans. At end-Q108, its gross NPL ratio stood at 6.5% (end- 2007: 6.3%; end-2006: 6.8%), higher than the industry's 5.3%. Capital is satisfactory with Tier 1 and total CARs of 11.7% and 12.9%, respectively, at end-2007. Established in 1963, EON Bank has 135 branches and 192 ATMs in Malaysia. Through its bank holding company, EON Capital, the key shareholders are a private equity fund, Primus Pacific Partner (20.2% stake acquired from DRB-HICOM earlier this year), government-owned institutions (17% through Khazanah Nasional Berhad and Employees Provident Fund) and directors Mr Rin Kin Mei (15.4%) and Dr Tiong Ik King (17.1%). HANOVER FINANCE: Fitch Lowers FC Issuer Default Ratings at D ------------------------------------------------------------ Fitch Ratings has downgraded New Zealand-based Hanover Finance Limited's Long- and Short-term foreign currency Issuer Default Ratings to 'D' from 'C', Individual rating to 'F' from 'E', and simultaneously removed them from Rating Watch Negative. At the same time, Fitch has affirmed HFL's Support rating at '5' and the Support Rating Floor at 'NF'. A Long-term foreign currency IDR of 'D' indicates that HFL has defaulted on its financial obligations. This rating action reflects confirmation from HFL management that it failed to meet financial obligations by 5pm on Friday 25 July 2008 (the end of the applicable grace period), which resulted in an event of default as defined in its debenture trust deed. Furthermore, the company has suspended all future payments of interest and principal repayments with effect from Wednesday 23 July 2008, and intends to propose a restructuring plan to its trustee and its investors in a bid to allow itself time to work through its problems "in an orderly way" and to "realize value from all borrowers". Prior to the recent downgrades, Fitch had assigned a Long-term foreign currency IDR of 'BB+' which it defines as 'Speculative'. HFL's ratings reflected its small size and exposure to relatively high-risk property development loans in New Zealand and, to a lesser extent, Australia. STATS CHIPPAC: Ng Tiong Gee Tenders Resignation ----------------------------------------------- In a disclosure with the Singapore Stock Exchange, STATS ChipPAC Ltd. said that Ng Tiong Gee has tendered his resignation as the company's Chief Information Officer and Senior Vice President of Human Resources. Mr. Ng will pursue other career opportunities. "Tiong Gee has made significant contributions to our company over the years. It has truly been a pleasure to work with Tiong Gee and we appreciate the important contributions he has made to our company. I would like to personally thank him for his dedication and wish him every success in his future endeavors," said STATS ChipPAC's President and Chief Executive Officer. Justin Lim will be appointed as Chief Information Officer. Tan Lay Koon continued, "Justin has been with our company since 2001 and I am confident that with his 25 years of IT experience in the semiconductor industry, and his intimate familiarity with our business requirements, Justin is well qualified to lead our IT organization worldwide to the next level of leadership." About STATS ChipPAC Ltd. Headquartered in Singapore, STATS ChipPAC Ltd. -- http://www.statschippac.com.-- is a service provider of semiconductor packaging design, assembly, test and distribution solutions in diverse end market applications including communications, digital consumer and computing. With global headquarters in Singapore, STATS ChipPAC has design, research and development, manufacturing or customer support offices in ten different countries. * * * As reported by the Troubled Company Reporter-Asia Pacific on June 24, 2008, Standard & Poor's Ratings Services assigned its 'BB+' issue rating to the proposed issue of medium-term benchmark-sized senior unsecured notes by STATS ChipPAC Ltd. (BB+/Stable/--). =========== T A I W A N =========== QUANTA COMPUTER: Turns Cautious on Laptop PC Demand --------------------------------------------------- Quanta Computer Inc. turned cautious on laptop PC demand for the second half of the year due to a global economic slowdown, Baker Li of Reuters reports, citing Economic Daily News. According to the report, Quanta Computer Inc. Vice Chairman C.C. Leung had expressed concerns over the laptop market if the global economy deteriorates. However, Reuters says, Quanta's shipment target of a 15% rise in the third quarter from the second quarter remained unchanged and Quanta still expects to ship 40 million units this year. Headquartered in Taoyuan, Taiwan, Quanta Computer Inc. -- http://www.quantatw.com/-- is principally engaged in the manufacture, research, development and sale of laptop computers and components. The company offers laptops, cellular telephones, liquid crystal display televisions, servers, LCD monitors, computer peripherals, computer components, wireless local area network (WLAN) bridges and communications products. It serves overseas markets, predominantly the Americas, Asia and Europe. * * * The company continues to carry Fitch Ratings's BB long-term foreign currency issuer default rating. QUANTA COMPUTER: Bags Budget-PC Orders from Sony Corp ------------------------------------------------------ Quanta Computer Inc. has secured contracts for 10-inch budget personal computers from Sony Corp, XFN-ASIA News reports, citing the Commercial Times. Sony laptops, the report relates, will adopt the C7-M microprocessor from VIA Technologies Inc and liquid crystal display panels from AU Optronics Corp. The PCs will be launched in the fourth quarter. Headquartered in Taoyuan, Taiwan, Quanta Computer Inc. -- http://www.quantatw.com/-- is principally engaged in the manufacture, research, development and sale of laptop computers and components. The company offers laptops, cellular telephones, liquid crystal display televisions, servers, LCD monitors, computer peripherals, computer components, wireless local area network (WLAN) bridges and communications products. It serves overseas markets, predominantly the Americas, Asia and Europe. * * * The company continues to carry Fitch Ratings's BB long-term foreign currency issuer default rating. =============== X X X X X X X X =============== * Asia Remains Resilient Amidst US & European Woes, S&P Reports --------------------------------------------------------------- To date, Asia has largely avoided the doom and gloom enveloping its counterparts in the United States and, increasingly, Europe, said an article published by Standard & Poor's Ratings Services. The article, which is titled "Asia Credit Comment: Can It Stay Above The Fray? (Premium)" says that macroeconomic fundamentals in the region still appear sound, and although pressure is undoubtedly increasing in light of global frailties, there appear to be no major threats to macroeconomic stability. Exports continue to be resilient, in part benefiting from reduced dependence on the U.S. compared with a decade ago. In addition, regional domestic demand is accelerating -- notably in large markets such as China and India -- and the region's net creditor profile and cumulative foreign reserve position are peerless. "However, the outlook for regional credit markets is not cloudless," said head of S&P's Global Fixed Income Research Group, Diane Vazza. "It would be inappropriate to gloss over the emerging risks." Even though Asia will continue to benefit from higher economic growth rates vis-a-vis its global counterparts, regional credit markets face headwinds from domestic and external factors. These include: -- Inflationary concerns. -- Unfavorable interest rate dynamics. -- Financial exposure. -- Rising import bill. Indeed, evidence from S&P's proprietary ratings-based indicators suggests that the negative tone in regional corporate credit quality is slightly more elevated in comparison with prior quarters, even though it is still below the levels observed in the U.S. or Europe. ********* 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 ***