/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080904.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 Thursday, September 4, 2008, Vol. 11, No. 176 Headlines A U S T R A L I A BABCOCK & BROWN: Hires John Fanning as Chief Financial Officer BAYWATT PTY: Placed Under Voluntary Liquidation DAVID B ATKINSON: Members' Final Meeting Set for September 5 FORTESCUE METALS: Falcone's 10% Stake Triggers Short Selling FUTURIS CORP: Sells 50% Stake in Amcom to Pay Off Debts F.V. ELITE: Joint Meeting Slated for September 9 HAWTHORNE INVESTMENTS: Joint Meeting Set for September 15 INFINITE MONEY: Members and Creditors to Meet on September 12 INGLEBROOK PTY: Members' Final Meeting Set for September 12 MIDWAY STUDIOS: Joint Meeting Slated for September 8 PUZSAR JEWELLERY: Member's Final Meeting Set for September 8 TORONTO COUNTRY: Liquidator to Give Wind-Up Report on September 8 VANAMO PTY: Joint Meeting Slated for September 9 * AUSTRALIA: Cuts Cash Rates to 7.0%, First Rate Cut Since 2001 C H I N A ICBC: Overseas Assets Up 22% to US$43 Billion in First Half 2008 PORTOLA PACKAGING: Moody's Lowers POD Rating to D from Ca VISTEON: Ford Motor to Contribute US$50 Mil. in Escrow Account VISTEON CORP: Closes UK Facility Sale, Continues UK Restructuring XINHUA: Unit Hires Edward Liu as Investor Relations Professional H O N G K O N G GOLDFLAG LIMITED: Commences Liquidation Proceedings GRIFFIN INDUSTRIES: Wind-Up Petition Hearing Set for October 8 JEWELLERY COLLECTION: Creditors' Proofs of Debt Due on Sept. 19 LIBERTY HERO: Subject to Wong Yin Fan's Wind-Up Petition NEXIS COMPANY: Placed Under Voluntary Liquidation RAYDAR TRADING: Appoints Middleton and Muk as Liquidators SINCERITY ENGINEERING: Wind-Up Petition Hearing Set for October 8 SONITE LIMITED: Court to Hear Wind-Up Petition on October 8 W.R. GRACE: Placed Under Voluntary Liquidation WING YIP: Court to Hear Wind-Up Petition on October 8 I N D I A BAGADIYA BROS: Constrained Fin'l Risk Profile Cues CRISIL's 'P4' GENERAL MOTORS: Investing US$500 Mil. for New Compact Car in Ohio GENERAL MOTORS: Should Assume Delphi Pension Costs, PBGC Says KHATEMA FIBRES: CRISIL Cuts BB-Rated Rs.358.5 Mil. Term Loans to D SOUTH INDIA SPONGE: CRISIL Rates Rs. 250 Mil. Facilities at 'BB-' TATA MOTORS: Proposes Rs. 4,200 Crores Rights Issue TATA MOTORS: Suspends Work on Nano Plant in Singur TATA MOTORS: August 2008 Vehicle Exports Down 6% to 4,772 J A P A N DELPHI CORP: Court OKs Add'l US$4MM Defense Costs for Ex-Officers DELPHI CORP: Court Okays US$16.5MM Settlement With Furukawa FORD MOTOR: To Contribute US$50 Mil. to Visteon Escrow Account FORD MOTOR: David Mondragon Named Ford Canada President and CEO ELPIDA MEMORY: Shares Fall by Record Following Nomura's Rating Cut FUJI HEAVY: May Help Design Mitsubishi Heavy's Passenger Jets K O R E A * KOREA: Auto Production Drops 16.2% in August * KOREA: Government to Help Credit Defaulters M A L A Y S I A APL INDUSTRIES: Group Incurs MYR18.30MM Net Loss in 4th Quarter GOLD BRIDGE: Posts MYR844,000 Net Profit in Quarter Ended June 30 LUSTER INDUSTRIES: Posts MYR809,000 Net Loss in 2nd Qtr. 2008 WONDERFUL WIRE: Posts MYR14.11 Mil. Net Loss in Qtr. Ended June 30 N E W Z E A L A N D ADVANCE PAINTING: Liquidators Set September 5 as Claims Bar Date BLAKE RANCH: Proofs of Debt Due on September 10 BLAKE STATION: Liquidators Set September 10 as Claims Bar Date JATCOM PRINTING: Wind-Up Petition Hearing Set for September 8 MILLENNIUM CAFE: Liquidators Set September 12 as Claims Bar Date OCEANA GROUP: Proofs of Debt Due on September 12 PARTAGAS FOUNDATION: Proofs of Debt Due on September 15 PROVENCOCADMUS: Posts NZ$36.3 Mil. Net Loss in FY2008 TAURANGA VALENTINES: Placed in Receivership TWA LIMITED: Commences Liquidation Proceedings * NEW ZEALAND: Economy May Emerge From Recession, NZIER Says * NEW ZEALAND: Reserve Bank to Regulate Non-bank Deposit Takers P H I L I P P I N E S INDUSTRIAS METALURGICAS: Fitch Holds 'B' Foreign Currency IDR S I N G A P O R E E3 HOLDINGS: Posts SGD4.49 Mil. Net Loss in Full Year 2008 GOLDTRON LTD: Posts SGD3.60 Mil. Net Loss in Full Year 2008 HOUSING AND URBAN: Fitch Lifts LT ID Rating to 'BBB-' from 'BB+' ICONIC HOLDINGS: Posts SGD2.76 Mil. Net Loss in FY2008 MITSUBISHI ELECTRONICS: Fixes Sept. 29 as Last Day to File Claims RANHILL BERHAD: Fitch's Rating Unmoved by Full-Year Fin'l Results SINGAPORE LEASING: Creditors' Proofs of Debt Due on September 12 - - - - - ================= A U S T R A L I A ================= BABCOCK & BROWN: Hires John Fanning as Chief Financial Officer -------------------------------------------------------------- Babcock & Brown Limited has appointed John Fanning as Chief Financial Officer of Babcock & Brown effective immediately. Mr. Fanning replaces Michael Larkin who was appointed Chief Executive Officer and Managing Director on August 21 2008. Mr. Fanning joined Babcock & Brown in August 2005 in the Corporate and Structured Finance Division. Prior to joining Babcock & Brown, Mr. Fanning was a Partner at Ernst & Young and a Director of Ernst & Young Transaction Advisory Services. Mr. Fanning will retain his Board position on Babcock & Brown Capital Management Pty Limited, the manager of Babcock & Brown Capital Limited. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 21, 2008, Babcock & Brown Limited disclosed that as part of a broader strategic review process, it has adopted a number of changes to improve independence and governance and to support the next phase of the Group's evolution. The company said following 24 years with Babcock & Brown and nearly four years as Managing Director and Chief Executive Officer (CEO), Phil Green, has decided to step down from his executive role but will remain on the Board, and after a short transition period will become a Non-Executive Director. Mr. Green will be replaced by current CFO, Michael Larkin, who has been appointed Managing Director and CEO effective immediately. The company is in the process of selecting a new Chief Financial Officer (CFO) from a field of both internal and external candidates. Jim Babcock, Founder and Executive Chairman, is stepping down as Chairman but will remain on the Board and after a short transition period will become a Non-Executive Director. Deputy Chairman, Elizabeth Nosworthy, has been elected Chairman. For health reasons, the current Chairman of the Board's Audit & Risk Management Committee, Michael Sharpe, has retired as a Non Executive Director, he will be replaced in that role by Pat Handley. The remaining two Executive Directors, Jim Fantaci and Martin Rey have stepped down from the Board to increase the proportion of independent and non-executive directors on the board. The other independent directors, Joe Roby and Dieter Rampl, will continue in their roles and the Board has commenced a search to recruit further independent directors. The Babcock & Brown Board will after the noted transitions, have only one Executive Director being the Managing Director, Michael Larkin. 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 Aug. 25, 2008, Standard & Poor's Ratings Services affirmed its 'BB+/B' ratings on Babcock & Brown International Pty Ltd. (BBIPL) following the announcements by the company's parent', Babcock & Brown Limited (B&B Ltd., not rated), of a 30% fall in group net profit for the half-year to June 30, 2008, against half-year to June 30, 2007, and replacement of selected senior management. The rating outlook is stable. "We are not surprised that, in the current market environment, the group had had to make impairment charges against assets and investments, and the amount involved (AU$441 million) is not outside expectations," said S&P's credit analyst Ian Greer. "The changes in the board and senior management are a positive move for implementing the next stage in the evolution of B&B Ltd.'s, and thus BBIPL's, business model. This change has been and will be assisted by B&B Ltd.'s stoppage of dividends, decline in employee bonuses, and planned reductions in debt and staff headcount." BAYWATT PTY: Placed Under Voluntary Liquidation ----------------------------------------------- Baywatt Pty. Ltd.'s members agreed on July 14, 2008, to voluntarily liquidate the company's business. P. D. McCarthy was appointed to facilitate the sale of its assets. The liquidator can be reached at: P. D. McCarthy 65 Unley Road Parkside SA 5063 DAVID B ATKINSON: Members' Final Meeting Set for September 5 ----------------------------------------------------------- Sule Arnautovic, David B Atkinson Pty Limited's appointed estate liquidator, will meet with the company's members on Sept. 5, 2008, at 9:30 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: Sule Arnautovic Jirsch Sutherland GPO Box 4256 Sydney NSW 2001 Telephone (02) 9236 8333 Facsimile (02) 9236 8334 Website: Email admin@jirschsutherland.com.au FORTESCUE METALS: Falcone's 10% Stake Triggers Short Selling ------------------------------------------------------------ Fortescue Metals Group Ltd said it has been made aware that some 10% of the company's shares have been the subject of stock loans. Fortescue said in a regulatory filing that the stock loans were made by the owner's custodian and the owner has since advised the company that it will immediately rectify the situation. The West Australian reports that Phil Falcone, Billionaire New York investor, has inadvertently triggered a wave of short selling in Fortescue Metals Group after the custodian looking after some of his 15.6 per cent stake in the company lent the stock to other hedge funds. According to the West Australian, the shareholder in question is Mr. Falcone's Harbinger Capital, Fortescue's second-biggest shareholder and the only party apart from its founder Andrew Forrest (36.5 per cent) to own more than 10 per cent of the company. The report cited sources saying that Mr. Falcone had been unaware that his custodian had lent his Fortescue stock. It remains unclear how long it will take Mr. Falcone's custodian to unwind the transactions and recoup the lent stock, the report adds. The West Australian relates that the stock is thought to have been picked up by numerous hedge funds punting on sharp falls in Fortescue's share price. Mr. Forrest has been outspoken in his attacks on short sellers, who he has accused of triggering a Fortescue share price collapse from AU$13.15 only two months ago to as low as AU$7.15 two weeks ago by spreading damaging rumours about the company's Pilbara operation, the report says. Fortescue is expected to continue probing its share register movements in an attempt to find out which brokers and hedge funds were behind the Harbinger stock-lending exercise, the West Australian notes. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited (ASX:FM) -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * Fortescue reported consecutive net losses for the past three fiscal years. Net loss for the year ended June 30, 2007, was AU$68.43 million, while net losses for FY2006 and FY2005 were AU$2.15 million and AU$4.52 million respectively. FUTURIS CORP: Sells 50% Stake in Amcom to Pay Off Debts ------------------------------------------------------- Futuris Corporation disclosed that it has commenced the divestment of its 50% shareholding in Amcom Telecommunications. The sale process comprises a now completed selldown by Futuris of 170 million shares to institutional investors and a selective buyback and cancellation by Amcom of the remaining 99 million shares beneficially held by Futuris for an average price of 18 cents per share, equating to a total value of AU$48.5 million. Proceeds will be applied to debt reduction and the divestment will have a total net debt reduction benefit to Futuris of approximately AU$64 million, with the sale proceeds being supplemented by the deconsolidation of net debt attributable to Amcom. The institutional selldown, managed by Euroz Securities Limited, was successfully completed at 17 cents per share. The selldown has reduced Futuris' shareholding in Amcom to 18.6%. Amcom has agreed to buy back and cancel the remaining 99 million shares beneficially held by Futuris for AU$19.6 million, subject only to shareholder approval (excluding votes cast by Futuris and shareholders associated with Futuris). The transaction has the unanimous support of independent Amcom directors. In addition, an independent expert engaged by Amcom to assess the selective buyback in accordance with the requirements of the Corporations Act and ASX Listing Rules has concluded that the transaction is fair and reasonable to Amcom shareholders. Futuris Chief Executive Les Wozniczka said that the transaction was another step forward in the Company's strategy of divesting non-core assets and concentrating resources on its performing rural and regional operations. "Amcom is a great Company, with a bright future. Unfortunately, the decision by the incoming Federal Government to cancel funding for the OPEL rural and regional broadband network meant that pursuit of our telecommunications strategy became untenable and the Amcom shareholding non-core. "Accordingly we are realising our capital and reapplying it to our strategy of debt reduction and in reinvestment in our core performing rural and regional assets." Sale of the Amcom shareholding follows other transactions completed by Futuris in the 2008 financial year including the sale of its shareholding in Clean Seas Tuna, sale and leaseback of 15,000 hectares of plantation land and the divestment of the Rail and Bus thermal operations. In addition, wholly owned subsidiary Elders has announced the discontinuation of a number of non-core operations and projects. The transaction as proposed represents sale at book value. Futuris previously recognized a AU$9.9 million gain arising from discount on acquisition realised with the consolidation of Amcom into its FY08 full year accounts as a non-recurring item. Under the terms of the buyback agreement between Amcom and Futuris, payment of AU$7.0 million of the AU$19.6 million of the buy back consideration will be deferred until Jan. 31, 2009. Futuris has the right to terminate the proposed selective buy-back in certain circumstances, including where a superior proposal (compared to the proposed buy-back) emerges to acquire all of Amcom. About Amcom Amcom Telecommunications Limited (ASX:AMM) -- http://www.amcom.com.au -- is a fibre, digital subscriber line (DSL) broadband and Internet provider serving business customers of all sizes. The company operates through two divisions: Fiber division and Amnet division. As of June 30, 2007, Fiber division has deployed over 1,087 kilometer of high-speed metropolitan networks in Perth, Adelaide and Darwin, accessing 795 buildings. Amnet division offers DSL services and voice services to corporate, small and medium enterprises, and residential clients over the company owned fibre and DSL networks. The Amnet division also provides information technology services, including local area network and wide area network, data centre and Internet services provider services to larger corporate and government enterprises. In May 2006, it acquired a 19.3% stake in iiNet Limited. On March 31, 2007, the company purchased the WA Fibre business of People Telecommunications Ltd. About Futuris Corp. Adelaide, Australia-based Futuris Corporation Limited -- http://www.futuris.com.au/-- generates the major share of its income from the Australian primary production and rural sector, where it owns or has shareholdings in leading businesses. The company's interests include Elders, a rural service company and Integrated Tree Cropping -- manager of a hardwood plantation estate. The company also holds a 27% interest in Webster Limited which owns 28% of Australia's largest salmon aquaculture operation. Telecommunications is a growing contributor to the company's income through Amcom, which owns 22% stake in iinet, an independent service provider and Elders telecommunications, a specialist retailer of voice and data services to rural and regional Australia. Futuris is also engaged in automotive component manufacturing through Futuris (Air International), a supplier of seating and interior systems for passenger vehicles. Futuris has approximately 6,000 employees. The company is traded on the Australian Stock Exchange under the ticker code FCL. * * * On Nov. 20, 2007, the Troubled Company Reporter-Asia Pacific's distressed bonds column listed Futuris Corporation's bond with a 7.000% coupon, a December 31, 2007 maturity date, and a trading price of AU$2.46. F.V. ELITE: Joint Meeting Slated for September 9 ------------------------------------------------ F.V. Elite (Aust.) Pty Ltd will hold a final meeting for its members and creditors at 11:00 a.m. on Sept. 9, 2008. During the meeting, the company's liquidator, David H. Scott, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: David H. Scott Scott Partners Consulting Level 1, 173 Burke Road Glen Iris VIC 3146 HAWTHORNE INVESTMENTS: Joint Meeting Set for September 15 --------------------------------------------------------- R. B. McKern, Hawthorne Investments Pty Ltd's appointed estate liquidator, will meet with the company's members on Sept. 15, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: R. B. McKern McGrathNicol Level 8, IBM Centre 60 City Road Southbank VIC 3006 Telephone (03) 9038 3100 Website: www.mcgrathnicol.com INFINITE MONEY: Members and Creditors to Meet on September 12 ------------------------------------------------------------- Infinite Money Markets Pty Limited will hold a final meeting for its members and creditors at 10:00 a.m. on Sept. 12, 2008. During the meeting, the company's liquidator, Robert Moodie, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Robert Moodie Rodgers Reidy Level 8, 333 George Street Sydney NSW 2000 INGLEBROOK PTY: Members' Final Meeting Set for September 12 ---------------------------------------------------------- Tony Miskiewicz and Moira Carter, Inglebrook Pty Ltd's appointed estate liquidators, will meet with the company's members on Sept. 12, 2008, at 10:00 a.m. to provide them with property disposal and winding-up reports. The liquidators can be reached at: Jessup & Partners Accountants & Business Advisors Level 3, 155-157 Denham Street Townsville QLD 4810 Telephone (07) 4772 3515 Facsimile (07) 4721 4513 MIDWAY STUDIOS: Joint Meeting Slated for September 8 ---------------------------------------------------- Midway Studios � Australia Pty Ltd will hold a final meeting for its members and creditors at 10:00 a.m. on Sept. 8, 2008. During the meeting, the company's liquidator, John Melluish, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: John Melluish Ferrier Hodgson GPO Box 4114 Sydney NSW 2001 PUZSAR JEWELLERY: Member's Final Meeting Set for September 8 ------------------------------------------------------------ A. L. Dunner, Puzsar Jewellery Export Pty Ltd's appointed estate liquidator, will meet with the company's members on Sept. 8, 2008, at 10:00 a.m. to provide them with property disposal and winding- up reports. The liquidator can be reached at: A. L. Dunner Andrew Dunner & Associates Chartered Accountants 23 Erin Street, Richmond TORONTO COUNTRY: Liquidator to Give Wind-Up Report on September 8 ----------------------------------------------------------------- P. W. Gidley, Toronto Country Club Limited's appointed estate liquidator, will meet with the company's members on Sept. 8, 2008, at 9:00 a.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: P. W. Gidley Ferrier Hodgson (Newcastle) Chartered Accountants Level 3, 2 Market Street Newcastle NSW 2300 VANAMO PTY: Joint Meeting Slated for September 9 ------------------------------------------------ Vanamo Pty Limited will hold a joint meeting for its members and creditors at 10:30 a.m. on Sept. 9, 2008. During the meeting, the company's liquidator, Peter P. Krejci, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Peter P. Krejci Ferrier Green Krejci Silvia Level 13 1 Castlereagh Street Sydney NSW 2000 * AUSTRALIA: Cuts Cash Rates to 7.0%, First Rate Cut Since 2001 --------------------------------------------------------------- The Reserve Bank of Australia has cut its cash rate by 25 basis points to 7.0 per cent for the time since 2001. Reserve Bank governor Glenn Stevens said in a statement that inflation in Australia has been high over the past year in an environment of limited spare capacity and earlier strong growth in demand. In these circumstances, the Board has been seeking to restrain demand in order to reduce inflation over time. As a result of increases in the cash rate last year and early this year, additional rises in market interest rates and tougher credit standards, financial conditions have been quite tight. Some further tightening has occurred over the past couple of months. Conditions in international financial markets remain difficult, with heightened concerns over credit persisting, the statement says. The evidence is that the tight financial conditions, in conjunction with other factors including higher fuel costs and lower asset values, have exerted the needed restraint on demand. Indicators of household spending have recorded subdued outcomes over recent months, and credit expansion to both households and businesses has slowed. Surveys suggest a softening in business activity and growth in production has slowed. Indicators of capacity utilisation, while still high, are declining and there have also been some signs of an easing in labour market conditions. The rise in Australia's terms of trade that has occurred is working in the opposite direction, adding substantially to national income and ability to spend. Fixed investment spending by businesses continues to be very strong. At the same time, high prices of oil and a range of other commodities have added to global inflationary risks. They are also dampening growth in a number of countries. The Reserve Bank said that given the opposing forces at work, considerable uncertainty has surrounded the outlook for demand and inflation. On balance, however, it is looking more likely that household demand will remain subdued and overall economic growth slow over the period ahead. Inflation is likely to remain relatively high in the short term, with the CPI affected by the high global oil prices in mid year and other increases in raw materials prices. But looking further ahead, the outlook for demand suggests that inflation in both CPI and underlying terms is likely to decline over time, provided wages growth remains contained. The Bank's forecast remains that inflation will fall below 3 per cent during 2010. Weighing up the available domestic and international information, the Board judged that there was now scope for monetary policy to become less restrictive. The Board will continue to assess prospects for demand and inflation over the period ahead, and set monetary policy as needed to bring inflation back to the 2-3 per cent target over time, the statement says. ========= C H I N A ========= ICBC: Overseas Assets Up 22% to US$43 Billion in First Half 2008 ---------------------------------------------------------------- Industrial and Commercial Bank of China's overseas assets increased 22% to US$43 billion by the end of June, largely resulted from a deal finished in March with South Africa's Standard Bank, Xinhua News reports, citing a bank spokesman. On March 27, 2008, the Troubled Company Reporter-Asia Pacific, citing Reuters, reported that ICBC signed a final agreement with Standard Bank to jointly set up a US$1 billion global resource fund. The report said that ICBC recently bought a 20% stake in Standard Bank for about US$5.5 billion. Standard Bank has said in October that it and ICBC were discussing the launch of a global resource fund with a targeted size of US$1 billion. The fund would focus on opportunities in Africa and China, specifically in the junior mining and energy sectors, the report related. According to Xinhua, the ICBC spokesman also attributed the increase in overseas assets to the opportunity brought about by the expansion of Chinese companies into overseas markets. ICBC overseas institutions, the report notes, had provided an international settlement service for Chinese companies, involving a sum of US$97.3 billion, up 49.7% from the same period last year. Of the total, international settlement on trade amounted to US$23 billion, up by 96.5%, Xinhua says. The report relates the Chinese bank's overseas institutions posted a profit of US$240 million after deducting the provision for bad debt in the first half, up by 42% over the same period last year. The bank's non-performing loans ratio of its overseas institutions was 0.19%, down 0.15 percentage points from early this year. Xinhua adds that ICBC received a dividend of 588 million South African Rand (US$37.3 million) from the Standard Bank in the first half. About ICBC The Industrial and Commercial Bank of China -- http://www.icbc.com.cn/-- is the largest state-owned commercial bank, and is authorized by the State Council and the People's Bank of China. ICBC conducts operations across China as well as in major international financial centers. * * * ICBC continues to carry Fitch Ratings' Individual D/E rating. On May 4, 2007, Moody's Investors Service affirmed Industrial & Commercial Bank of China Ltd's Bank Financial Strength Rating at D-. The outlook for BFSR is stable. The outlook for the long- term deposit rating is positive. PORTOLA PACKAGING: Moody's Lowers POD Rating to D from Ca --------------------------------------------------------- Moody's Investors Service lowered the Probability of Default Rating for Portola Packaging, Inc. to D following the company's announcement that it filed a voluntary petition for Chapter 11 reorganization. Moody's will withdraw all the company's ratings within several days. Moody's took these rating actions: -- Downgraded, Probability of Default Rating, to D from Ca The company announced that holders of approximately 90% of the principal amount of its 8-1/4% Senior Notes due 2012 agreed to a restructuring of the company as outlined in the previously announced restructuring agreement dated July 24, 2008. According to the plan, holders of the Senior Notes will receive 100% of the common stock of reorganized Portola in exchange for their claims. Wayzata Investment Partners LLC is expected to be Portola's controlling shareholder upon its emergence from bankruptcy. The company anticipates completing its pre-packaged reorganization and emerging from Chapter 11 in mid-October 2008. Portola also announced that it has reached agreement with its existing secured lenders to provide a US$79 million debtor-in- possession facility to pay off the outstanding indebtedness under the existing secured facilities and finance its ongoing operations. Moody's had previously downgraded the Corporate Family Rating and other ratings of Portola on July 25, 2008, following the company's announcement that it intended to file for bankruptcy. 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. Headquartered in Batavia, Illinois, Portola had consolidated revenue of approximately US$280 million for the 12 months ended Feb. 29, 2008. VISTEON: Ford Motor to Contribute US$50 Mil. in Escrow Account -------------------------------------------------------------- Visteon Corporation, Ford Motor Company and Ford-managed entity Automotive Components Holdings, LLC, amended these agreements: 1) The Escrow Agreement, dated as of Oct. 1, 2005, among Ford, the company and Deutsche Bank Trust Company Americas, was amended to, among other things, provide that Ford will contribute an additional US$50 million into the escrow account, and to provide that such additional funds will be available to the company to fund restructuring and other qualifying costs, as defined within the Escrow Agreement, on a 100% basis. 2) The Reimbursement Agreement, dated as of Oct. 1, 2005, between Ford and the company, was amended and restated to, among other things, require Ford to reimburse the company for certain severance expenses and other qualifying termination benefits, as defined in such agreement, relating to the termination of salaried employees who were leased to ACH. Previously, the amount required to be reimbursed by Ford was capped at US$150 million, of which the first US$50 million was to be funded in total by Ford and the remaining US$100 million was to be matched by the company. Any unused portion of the US$150 million as of Dec. 31, 2009, was to be deposited into the escrow account governed by the Escrow Agreement. 3) The Master Services Agreement, dated as of Sept. 30, 2005, as amended, between the company and ACH, was amended to, among other things, extend the term that Visteon will provide certain services to ACH, Ford and others from Dec. 31, 2009, to Jan. 1, 2011. 4) The Visteon Salaried Employee Lease Agreement, dated as of Oct. 1, 2005, as amended, between the company and ACH was amended to, among other things, extend the term that ACH may lease salaried employees of the company from Dec. 31, 2010 to Dec. 31, 2014. 5) The Intellectual Property Contribution Agreement, dated as of Oct. 1, 2005, as amended, among the company, Visteon Global Technologies, Inc., Automotive Components Holdings, Inc. and ACH was amended to, among other things, to clarify the availability for use of certain patents, design tools and other proprietary information. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. About Visteon Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company also has corporate offices in Shanghai, China; and Kerpen, Germany; the company has facilities in 26 countries and employs approximately 38,500 people. Visteon Corporation's consolidated balance sheet at June 30, 2008, showed US$7.02 billion in total assets, US$6.93 billion in total liabilities, and US$295.0 million in minority interests, resulting in a US$207.0 million stockholders' deficit. * * * Fitch Ratings has affirmed Visteon Corporation's ratings as: issuer default rating at 'CCC'; senior secured bank facilities at 'B/RR1'; and unsecured notes at 'CC/RR6'. Fitch has also assigned a rating of 'CC/RR6' to Visteon's new 12.25% senior unsecured notes being issued as part of the company's debt exchange offer. The ratings cover approximately US$2.8 billion in debt. The rating outlook is negative. VISTEON CORP: Closes UK Facility Sale, Continues UK Restructuring ----------------------------------------------------------------- Visteon Corporation disclosed the sale of its facility in Halewood, United Kingdom, to International Automotive Components Group Europe (IAC Europe), a key automotive supplier for interior trim, carpet and acoustics systems, and exterior trim. The Halewood facility is dedicated to the assembly and sequencing of cockpit systems and consoles to Jaguar Land Rover's Halewood operation. The Halewood facility had 2007 sales of approximately US$150 million and operated on close to a break-even basis. Under the business purchase agreement, Visteon will transfer the assembly facility and associated assets including purchase and supply contracts to IAC Europe. The nearly 150 employees currently employed at the facility will also transfer to the new owner. Terms of the sale were not disclosed. "Following the recently announced customer agreements and the Swansea plant sale, the divestiture of our Halewood facility marks another important step in improving the financial performance of our UK operations," said Donald J. Stebbins, Visteon president and chief executive officer. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company also has corporate offices in Shanghai, China; and Kerpen, Germany; the company has facilities in 26 countries and employs approximately 38,500 people. Visteon Corporation's consolidated balance sheet at June 30, 2008, showed US$7.02 billion in total assets, US$6.93 billion in total liabilities, and US$295.0 million in minority interests, resulting in a US$207.0 million stockholders' deficit. * * * Fitch Ratings has affirmed Visteon Corporation's ratings as: (i) issuer default rating (IDR) at 'CCC'; (ii) senior secured bank facilities at 'B/RR1'; and (iii) unsecured notes at 'CC/RR6'. Fitch has also assigned a rating of 'CC/RR6' to Visteon's new 12.25% senior unsecured notes being issued as part of the company's debt exchange offer. The ratings cover approximately US$2.8 billion in debt. The rating outlook is negative. XINHUA: Unit Hires Edward Liu as Investor Relations Professional ---------------------------------------------------------------- XFMedia, a unit of Xinhua Finance Limited, has hired Edward Liu, an investor relations professional with broad experience in finance and emerging growth companies, to assist the company in streamlining and expanding its investor relations efforts. In addition, the company also retained the services of American Capital Ventures, a boutique investor relations firm specializing in creating awareness and increasing a company's exposure to the investment community. Mr. Edward Liu commented, "I am honored to join XFMedia, a company very well positioned to take advantage of the growth in China. Their diverse product offering and media services offer a total solution to their client advertisers. I look forward to the opportunity to apply my knowledge in an effort to help XFMedia reach its investor relations objectives." Mr. Gostfrand, President of American Capital Ventures, noted, "XFMedia's broad based advertising model within the massive Chinese market is both impressive and financially beneficial for investors looking to tap into the growing local media market. The company is enjoying strong top and bottom line growth and is lead by a talented management team who can maximize the emerging opportunities in China." Prior to joining XFMedia, Mr. Liu worked as Director of Corporate Development and Investor Relations at Linktone, a leading provider of wireless interactive entertainment products and services in China. Previously, he worked with Silicon Valley Bank in Santa Clara, California, where he co-managed a $100MM portfolio of venture backed, early stage technology and life science companies and helped consult on debt structures. Mr. Liu has more than 7 years experience in risk management, business development and investor relations. He graduated with a bachelor degree in finance and marketing from University of San Diego, and has an MBA with honors from Shanghai Jiao Tong University, one of the top five graduate schools in China. American Capital Ventures (ACV), founded in 1999, is a boutique investor relations firm based on the principals of hard work, professionalism and integrity. ACV offers emerging growth companies a different, more comprehensive approach to investor relations. ACV delivers highly effective investor communications counsel in conjunction with developing tangible brokerage relationships for their clients. Their unique blend of creating awareness while effectively increasing a company's exposure to the investment community has allowed them to continually expand their About Xinhua Finance Media Xinhua Finance Media, a unit of Xinhua Finance Limited, is a leading media group in China with nationwide access to the upwardly mobile demographic. Through its synergistic business groups, Broadcast, Print and Advertising, XFMedia offers a total solution empowering clients at every stage of the media process and connecting them with their target audience. Its unique platform covers a wide range of media. About Xinhua Finance Limited Xinhua Finance Limited � http://www.xinhuafinance.com/-- is China's premier financial information and media service provider and is listed on the Mothers Board of the Tokyo Stock Exchange. Xinhua Finance's proprietary content platform, comprising Indices, Ratings, Financial News, and Investor Relations, serves financial institutions, corporations and re-distributors worldwide. Through its subsidiary Xinhua Finance Media Limited, XFL leverages its content across multiple distribution channels in China including television, radio, newspaper, magazine and outdoor media. Founded in November 1999, XFL is headquartered in Shanghai, with offices and news bureaus spanning 12 countries worldwide. * * * Xinhua Finance Limited continues to carry Moody's "B2" LT Family and Senior Unsecured Debt Ratings. The company also carries S&P's "B" LT Credit Rating. =============== H O N G K O N G =============== GOLDFLAG LIMITED: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary general meeting held on August 21, 2008, the members of Goldflag Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Ricky P.O. Chong Cordelia Tang 905 Silvercord, Tower 2 30 Canton Road Tsimshatsui, Kowloon Hong Kong GRIFFIN INDUSTRIES: Wind-Up Petition Hearing Set for October 8 -------------------------------------------------------------- The High Court of Hong Kong will hear on October 8, 2008, at 9:30 a.m., a petition to have Griffin Industries Limited's operations wound up. The petition was filed by Jones Day on July 2, 2008. JEWELLERY COLLECTION: Creditors' Proofs of Debt Due on Sept. 19 --------------------------------------------------------------- The creditors of Jewellery Collection Group Limited are required to file their proofs of debt by September 19, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on August 18, 2008. The company's liquidator is: Wong Sun Keung Far East Consortium Building Unit 6, 20th Floor 121 Des Voeux Road Central, Hong Kong LIBERTY HERO: Subject to Wong Yin Fan's Wind-Up Petition -------------------------------------------------------- On July 14, 2008, Wong Yin Fan filed a petition to have Liberty Hero Enterprises Limited's operations wound up. The petition will be heard before the High Court of Hong Kong on September 17, 2008. NEXIS COMPANY: Placed Under Voluntary Liquidation ------------------------------------------------- At an extraordinary general meeting held on August 18, 2008, the shareholders of Nexis Company Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Chi Wai Tam Ocean Centre, 16th Floor Harbour City, Canton Road Kowloon, Hong Kong RAYDAR TRADING: Appoints Middleton and Muk as Liquidators --------------------------------------------------------- On July 29, 2008, Edward Simon Middleton and Jacky Chung Wing Muk were appointed liquidators of Raydar Trading (International) Limited. The Liquidators can be reached at: Edward Simon Middleton Jacky Chung Wing Muk KPMG, 8th Floor Prince's Building 10 Chater Road Central, Hong Kong SINCERITY ENGINEERING: Wind-Up Petition Hearing Set for October 8 ----------------------------------------------------------------- The High Court of Hong Kong will hear on October 8, 2008, at 9:30 a.m., a petition to have Sincerity Engineering International Limited's operations wound up. The petition was filed by Bank of China (Hong Kong) Limited on July 29, 2008. The Petitioner's solicitors are: Rowland Chow, Chan & Co. Wing Lung Bank Building, 15th Floor 45 Des Voeux Central Hong Kong SONITE LIMITED: Court to Hear Wind-Up Petition on October 8 ----------------------------------------------------------- The High Court of Hong Kong will hear on October 8, 2008, at 9:30 a.m., a petition to have Sonite Limited's operations wound up. The petition was filed by Malayan Banking Berhad on July 28, 2008. Malayan Banking's solicitors are: Charles Yeung Clement Lam Liu & Yip Grand Building, 13th Floor 18 Connaught Road Central, Hong Kong Telephone: 2521 3483 Facsimile: 2810 5581 W.R. GRACE: Placed Under Voluntary Liquidation ---------------------------------------------- On August 18, 2008, a special resolution was passed to voluntarily wind up the company's operations. The company's liquidator is: Kenny, Brian Edward K Wah Center, 19th Floor 1010 Hai Hai Zhong Road Shanghai 200031 P.R.C. WING YIP: Court to Hear Wind-Up Petition on October 8 ----------------------------------------------------- A petition to have Wing Yip Company Limited's operations wound up will be heard before the High Court of Hong Kong on October 8, 2008, at 9:30 a.m. Securities and Futures Commission filed the petition against the company on July 24, 2008. ========= I N D I A ========= BAGADIYA BROS: Constrained Fin'l Risk Profile Cues CRISIL's 'P4' ---------------------------------------------------------------- CRISIL has assigned its rating of 'P4' to the various bank facilities of Bagadiya Brothers Pvt Ltd (BBPL). Rs.1300 Million Export Packing Credit P4(Assigned) Rs.1117.5 Million Foreign Bills Negotiable P4(Assigned) Rs.350 Million Bank Guarantee P4(Assigned) The rating reflects BBPL's constrained financial risk profile on account of the working capital intensive nature of its business, and aggressive financial policy. The rating also factors in BBPL's exposure to risks relating to government regulations and the commodity and seasonal nature of the industry. These weaknesses are, however, partly offset by the promoters' long-standing experience in utilising established supply channels. About BBPL The promoters of BBPL began trading, mainly of food grains, in 1959 as a proprietorship concern, primarily in the domestic market. In 1991, the firm began export of food grains. The firm converted to a private limited company in August 2002. Over the past four years, BBPL has diversified into trading of iron ore fines, which now contributes around 80 per cent to its revenues. For 2006-07 (refers to financial year, April 1 to March 31), BBPL reported a profit after tax (PAT) of Rs.74.6 million on net sales of Rs.3443 million, against a PAT of Rs.21.3 million on net sales of Rs.8300 million for 2005-06. GENERAL MOTORS: Investing US$500 Mil. for New Compact Car in Ohio ----------------------------------------------------------------- General Motors Corp. Chairman and Chief Executive Officer Rick Wagoner disclosed that GM will invest more than US$500 million in the U.S. to build the Chevrolet Cruze, an all-new global compact car. The vehicle will be built at its Lordstown, Ohio plant. The Chevy Cruze will be officially unveiled at the Paris Motor Show in a few short weeks. In a surprise move, the investment announcement was accompanied by a glimpse of the Cruze life-size show property. The investment in Lordstown is one of several that have been announced at U.S. plants in the past five years, adding up to over US$2 billion total investment in Ohio and more than US$20 billion in the United States. "One of the key reasons for the success of the Chevrolet Cobalt and Pontiac G5 is the Lordstown workforce and the strong partnerships with the UAW and local and state officials," Mr. Wagoner said. "Based on the quality of work and these strong partnerships, we are pleased to announce our plans to invest another US$500 million in the Chevy Cruze product program in the U.S., including more than US$350 million in Lordstown." Ed Peper, GMNA vice president of Chevrolet, spoke to GM's strong position in delivering fuel-efficient vehicles that consumers want to buy. "The Cruze will build on the already successful Chevrolet Cobalt, Cobalt XFE and Cobalt SS, all of which are nearly sold out in dealer showrooms," Mr. Peper said. "Our dealers are asking for many more Cobalts than we can build." Chevrolet Cobalt sales are up 16%, year-to-date through July 2008, with an impressive 33 miles-per-gallon highway. The new Cobalt XFE model jumps to 37 miles-per-gallon and is selling almost as soon as it's unloaded from the delivery trucks to dealerships. The Chevrolet Cruze epitomizes the global nature of the automobile industry and GM's commitment to deliver fuel efficient, high- quality products. Cruze is the result of a development process harnessing GM's global design and engineering expertise. It is the first of a new family of compact Chevrolets that will continue the attention to quality, fuel efficiency, and strong value promise of the highly successful Malibu and all other vehicles under the Chevrolet brand. "The Chevrolet Cruze was designed and engineered by our global teams in Europe and Asia Pacific and will be manufactured in those regions in addition to the assembly plant here in Lordstown, Ohio," Mr. Wagoner said. "Our goal for the Chevrolet Cruze is to lead in fuel economy in this very competitive car segment." The new Cruze will be launched in Europe and Asia Pacific next year. It's scheduled to make its European debut at the Paris Motor Show in October. About General Motors Headquartered 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. General Motors Corporation offers products under the Chevrolet brand in India through its wholly owned subsidiary, General Motors India. GM India has 95 sales points and over 110 service centers. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. GENERAL MOTORS: Should Assume Delphi Pension Costs, PBGC Says ------------------------------------------------------------- Mike Ramsey and Christopher Scinta of Bloomberg News report that the Pension Benefit Guaranty Corp. has said General Motors should assume pension liabilities from Delphi Corp. by the end of September or risk bearing additional costs from its former auto parts subsidiary in bankruptcy. The agency is concerned that no resolution on a pension transfer seems imminent. Delphi had about US$3.3 billion in unfunded pension liabilities at the end of 2007, spokesman Lindsey Williams said, according to the report. About Delphi Corp. 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 June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 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) About General Motors Headquartered 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. General Motors Corporation offers products under the Chevrolet brand in India through its wholly owned subsidiary, General Motors India. GM India has 95 sales points and over 110 service centers. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. KHATEMA FIBRES: CRISIL Cuts BB-Rated Rs.358.5 Mil. Term Loans to D ------------------------------------------------------------------ CRISIL has revised its ratings on Khatema Fibres Limited's (Khatema Fibres') term loan facility to 'D' from 'BB/Stable', and on the company's cash credit facility to 'C' from 'BB/Stable'. Rs.358.5 Mil. Term Loans D (Downgraded from BB/Stable) Rs.460 Mil. Cash Credit Limit * C (Downgraded from BB/Stable) Rs.35 Mil. Letter of Credit Limit P4(Reaffirmed) * Includes Rs.60 million, which is fungible with letter of credit This follows delays in debt servicing on the term loans by the company. The rating on the company's letter of credit facility has been reaffirmed at 'P4'. Khatema Fibres' business is highly working capital intensive, primarily because of its dependence on imported waste paper and the long lead time between the placing of an order and receipt of raw material. The company maintains a very high inventory level, exceeding 170 days. High working capital requirements, limited flexibility to stretch creditors, and inadequate cash buffers, have also led to delays in the repayment of short-term borrowings by two to three days in the past. The restricted financial flexibility was further aggravated by the fact that raw material consignments of the company were held up at seaports which adversely impacted the production and the subsequent cash flow generations for the company leading to delays in term loan repayments. About Khatema Fibres Khatema Fibres was promoted by Mr. R C Rastogi in 1985. The company manufactures a range of industrial papers such as bleached and unbleached kraft liner boards, coloured kraft paper for applications such as packaging, electrical insulation, carry bags, and poster paper. It also makes newsprint and speciality papers such as crepe tissue. The company is held closely by the promoter's family and friends. For the year ended March 31, 2007, Khatema Fibres reported a net profit of Rs.77.9 million on net sales of Rs.1085.2 million, as against a net profit of Rs.93 million on net revenues of Rs.903.8 million in the previous year. SOUTH INDIA SPONGE: CRISIL Rates Rs. 250 Mil. Facilities at 'BB-' ----------------------------------------------------------------- CRISIL has assigned its bank loan ratings of 'BB-/Stable/P4' to the various bank facilities of South India Sponge Iron Pvt Ltd (SISIPL). Rs.145.2 Million Long-Term Loans BB-/Stable(Assigned) Rs.110.0 Million Cash Credit Limit BB-/Stable(Assigned) Rs.10 Million Letter of Credit Limit P4(Assigned) The rating reflects SISIPL's project implementation risks, aggressive financial risk profile, small scale of operations, and exposure to volatility in raw material prices. These rating weaknesses are, however, partly offset by SISIPL's good raw material sourcing capability and customer relationships. Outlook: Stable CRISIL believes that SISIPL's business risk profile will improve over the medium term backed by operational efficiencies and buoyant market conditions in the steel industry. However, its credit risk profile will remain constrained by project implementation risks and large debt-funded capital expenditure (capex). The outlook may be revised to 'Positive' if the capacity additions are completed in time and the margins improve. Conversely, the outlook may be revised to 'Negative' if SISIPL takes on more debt than expected to fund its capex, which could weaken its capital structure, or if its margins decline due to downturns in the industry. About SISIPL SISIPL is in the business of manufacturing sponge iron, and has a production capacity of 30,000 metric tonnes per annum (mtpa). It was promoted in 2006 by Mr. Rahul Khetan, who is currently the Managing Director. The company started commercial operations in March 2006, near Hosur in Karnataka. For 2006-07 (refers to financial year, April 1 to March 31), SISIPL reported a negative profit after tax (PAT) of Rs.25 million on net sales of Rs.190 million, as against a negative PAT of Rs.1 million on net sales of Rs.2 million for FY 2005-06. TATA MOTORS: Proposes Rs. 4,200 Crores Rights Issue --------------------------------------------------- The Committee of Directors of Tata Motors Limited has approved the terms of simultaneous and unlinked issue of: 1. Ordinary Shares on a Rights basis in the ratio of one Ordinary Share for every six shares held, The Ordinary Shares would be issued at a price of Rs.340/- per share of face value of Rs.10/- each aggregating Rs.2186 crores; and 2. 'A' Ordinary Shares on a Rights basis in the ratio of one Ordinary Share for every six shares held, The 'A' Ordinary Shares would be issued at a price of Rs.305/- per share of face value of Rs.10/- each aggregating Rs.1961 crores. The 'A' Ordinary Shares would have differential rights as to voting and dividend i.e. the 'A' Ordinary shareholder will be entitled to one vote for every ten 'A' Ordinary Shares held and will be entitled to receive dividend at 5 percentage points more than the rate of dividend declared on the Ordinary Shares. The proposed Issue, subject to the necessary regulatory approvals/process, is slated to open around end of September 2008. The proceeds of the Issue would be used to prepay part of the Short Term Bridge Loan availed by its subsidiary for financing the acquisition of Jaguar Land Rover from Ford which was completed on June 2, 2008. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 26, 2008, Tata Motors' Board reviewed the progress of the company's long-term financing plan which had been announced in May 2008, inter-alia for the Jaguar-Land Rover acquisition. At that time, the company had announced that a part of the total funds required would be raised through a rights issue to the shareholders of three simultaneous but unlinked securities namely: a) an issue of ordinary shares of a total amount of about Rs.2,200 crores; b) an issue of 'A' ordinary shares having differential voting rights (viz. 1 vote for every 10 shares held) of a total amount of about Rs.2,000 crores; and c) an issue of 0.5% 5-year convertible preference shares of a total amount of about Rs.3,000 crores, which would be convertible into 'A' ordinary shares at any time after 3 years but before 5 years from the date of allotment. The detailed terms on which the three securities involving a total amount of about Rs.7,200 crores would be issued was to be decided after the relevant procedure and process was completed and just before the company was ready to actually make the rights issue. Taking into account the current situation in the capital market and the change in the level of prices in the stock markets since May 2008, Tata Motor's Board of Directors reviewed the earlier fund raising proposal. With a view to keep the increase in the Share Capital as low as possible, the Board decided: 1. to restrict the Rights Issue only to two simultaneous but unlinked securities namely � (a) an issue of Ordinary Shares and (b) an issue of 'A' Ordinary Shares having differential voting rights; and 2. in place of the issue of Convertible Preference Shares, it is now proposed to raise the required resources by monetizing a part of the company's investments through a phased divestment of certain investments (preferably as inter-group sales wherever feasible) at prevailing market prices over the next 6 to 8 months. The funds released from such future divestments together with those already sold during the current financial year, will form part of the resources to be raised for repaying the bridging loan taken for the Jaguar-Land Rover acquisition. Tata Motors said the process for the Rights Issue is making satisfactory progress considering the complex information to be included in the Offer Document about the company, its subsidiaries and also the Jaguar-Land Rover acquisition. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2008, Standard & Poor's Ratings Services kept its 'BB' corporate credit rating on India's Tata Motors Ltd. on CreditWatch with negative implications, pending finalization of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--). At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', after the announcement of the agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover. Tata Motors has paid about US$2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford has contributed US$600 million to the Jaguar-Land Rover (JLR) pension plans. As reported in the Troubled Company Reporter-Asia Pacific on June 4, 2008, Moody's Investors Service downgraded the corporate family rating of Tata Motors Ltd to Ba2 from Ba1 following the completion of its acquisition of Ford's Jaguar Land Rover. The rating outlook is negative. TATA MOTORS: Suspends Work on Nano Plant in Singur -------------------------------------------------- Tata Motors Ltd said it has been constrained to suspend the construction and commissioning work at the Nano Plant in Singur in view of continued confrontation and agitation at the site. As reported in the Troubled Company Reporter-Asia Pacific, opposition party Trinamool Congress, against acquisition of land from "unwilling farmers�, started an indefinite protest Aug. 24 and reportedly threatened workers. On Aug. 28, attendance of contractual workers at the site fell below the prior day's level of around 15 per cent. Reports say that on a normal day, around 3,500-4,000 workers are engaged at work in the mother plant and at the vendor park. Information gathered by Hindu Business Line from Singur said supporters of the Trinamool Congress � and those opposed to the project � were intimidating workers engaged in the mother plant and in the vendor park while some were being physically prevented from entering their designated work areas. The company says the decision was taken in order to ensure the safety of its employees and contract labor, who have continued to be violently obstructed from reporting to work. The company has assessed the prevailing situation in Singur, after five continuous days of cancellation of work, and believes that there is no change in the volatile situation around the plant. The project's auto ancillary partners, who had commenced work at their respective plants in Singur, were also constrained to suspend work in line with Tata Motors' decision. In view of the current situation, the company is evaluating alternate options for manufacturing the Nano car at other company facilities and a detailed plan to relocate the plant and machinery to an alternate site is under preparation. To minimize the impact this may have on the recently recruited and trained people from West Bengal, the company is exploring the possibility of absorbing them at its other plant locations. According to the Indian automaker, construction of the plant has faced challenges at various points of time. There has however been a significant decline in the attendance of their staff and contractual labor since August 24, 2008. Some of the international consultants working on the plant have returned home and the construction work in the plant has been stalled since August 28, 2008. The company notes that the existing environment of obstruction, intimidation and confrontation has begun to impact the ability of the company to convince several of its experienced managers to relocate and work in the plant. Further, several persons engaged in the construction and commissioning work who had taken accommodation at Singur and nearby areas have since vacated and have gone away due to intimidation and fear. Tata Motors' Nano, dubbed the world's smallest car, was planned to be rolled out in October. Construction of the Nano project comprising of the Nano manufacturing facilities and the vendor park, a normal feature in modern auto plants, commenced in January 2007. The work on the construction and commissioning of the plant had been nearing completion in line with planned schedules. During construction, this project employed about 4000 employees at its peak including several hundred young residents from and around the region. Tata Motors has trained over 762 ITIs and other apprentices from the region and the state who have undergone retraining at the Tata Motors facilities in Jamshedpur and Pune. Tata Motors said its efforts to offer medical care in and around the region, which had handled over 17,000 medical cases, have been forcefully stopped by violent agitators. As part of the proposed integrated auto cluster in Singur, about 60 key auto ancillary suppliers to the Nano have taken possession of land in the integrated complex and have invested about Rs.500 crores towards construction of their plants and procurement of their equipment and machinery. Commenting on the situation, a Tata Motors spokesperson said, "The situation around the Nano plant continues to be hostile and intimidating. There is no way this plant could operate efficiently unless the environment became congenial and supportive of the project. We came to West Bengal hoping we could add value, prosperity and create job opportunities in the communities in the State.� About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2008, Standard & Poor's Ratings Services kept its 'BB' corporate credit rating on India's Tata Motors Ltd. on CreditWatch with negative implications, pending finalization of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--). At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', after the announcement of the agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover. Tata Motors has paid about US$2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford has contributed US$600 million to the Jaguar-Land Rover (JLR) pension plans. As reported in the Troubled Company Reporter-Asia Pacific on June 4, 2008, Moody's Investors Service downgraded the corporate family rating of Tata Motors Ltd to Ba2 from Ba1 following the completion of its acquisition of Ford's Jaguar Land Rover. The rating outlook is negative. TATA MOTORS: August 2008 Vehicle Exports Down 6% to 4,772 --------------------------------------------------------- Tata Motors Limited said its vehicle exports for August 2008 declined by 6% to 4,772 units compared to 5,093 vehicles in August 2007. The cumulative sales from exports for the fiscal at 17,627 nos. declined by 24% over 23,297 nos. in the same period last year. Total vehicle sale for the month of August 2008 is 43,576 units, a decline of 3% compared to 45,132 vehicles sold in August last year. Cumulative sales for the company at 216,038 nos., grew by 1%. Commercial Vehicles The company's sales of commercial vehicles in August 2008 in the domestic market were 23,231 nos., a decline of 1% compared to 23,419 vehicles sold in August last year. LCV sales were 13,088 nos., a growth of 11% over August 2007. M&HCV sales stood at 10,143 nos., a decline of 12.7% over August 2007. Cumulative sales of commercial vehicles in the domestic market for the fiscal were 117,092 nos., a growth of 11% over 105,825 vehicles sold last year. Cumulative M&HCV sales stood at 56,075 nos., a growth of 3% over last year, while LCV sales for the fiscal were 61,017 nos., a growth of 19% over last year. Passenger Vehicles Total sales of passenger vehicles were 15,573 nos. in the domestic market in August 2008, a decline of 6% over 16,620 vehicles sold in August last year. The Indica sales of 7,756 nos. declined by 31.9% over August 2007 on the back of the announcement of the next generation Indica Vista in the last week of August. The new generation Indica Vista, which went on showroom display in August, has received an extremely encouraging response from the market and the numbers of the Indica range should start looking up from September onwards as the retail activity commences in September. It is expected that demand of the Indica Vista will run ahead of availability in the next few months. The Indigo family recorded sales of 4,460 nos., a 104% growth over August 2007. The Sumo and Safari accounted for sales of 3,357 nos., a 11% growth compared to August 2007. Cumulative sales of passenger vehicles in the domestic market for the fiscal in the first five months were 81,319 nos., a decline of 4.9% over the same period last year. Cumulative sales of the Indica at 40,957 nos., reported a decline of 28%, driven by the maturity of the Indica range and news about the launch of the Indica Vista. Cumulative sales of the Indigo family were 21,999 nos., a growth of 84%. Cumulative sales of Sumo and Safari were 18,363 nos., a growth of 12%. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 9, 2008, Standard & Poor's Ratings Services kept its 'BB' corporate credit rating on India's Tata Motors Ltd. on CreditWatch with negative implications, pending finalization of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--). At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', after the announcement of the agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover. Tata Motors has paid about US$2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford has contributed US$600 million to the Jaguar-Land Rover (JLR) pension plans. As reported in the Troubled Company Reporter-Asia Pacific on June 4, 2008, Moody's Investors Service downgraded the corporate family rating of Tata Motors Ltd to Ba2 from Ba1 following the completion of its acquisition of Ford's Jaguar Land Rover. The rating outlook is negative. ========= J A P A N ========= DELPHI CORP: Court OKs Add'l US$4MM Defense Costs for Ex-Officers ----------------------------------------------------------------- On Aug. 31, 2007, Delphi Corp., Delphi Trust I, Delphi Trust II, certain former Delphi officers and employees, and certain of the Debtors' insurance companies entered into a Stipulation and Agreement of Insurance Settlement, which provided for the creation of a fund for the defense costs of the former Delphi officers and employees, administered by Delphi former Officers and employees as escrow agent. Pursuant to the Court-approved stipulation, the escrow agent was authorized to disburse up to US$1,000,000 to the Former Delphi Officers and Employees to be used solely for defense costs in connection with the lawsuit In re: Delphi Corporation Securities, Derivative and "ERISA" Litigation, 05-md-1725 (E.D. Mich.). Still, several of the former officers and employees continue to incur defense costs that require reimbursement. In this regard, the parties again stipulated that the Escrow Agent be authorized to disburse up to US$5,000,000, inclusive of the sums already disbursed, to the Delphi former officers and employees to be used solely for defense costs. The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York approved the stipulation. 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 June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 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. 142; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Court Okays US$16.5MM Settlement With Furukawa ----------------------------------------------------------- Bankruptcy Law360 reports that the Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York approved Delphi Corporation's US$16.5 million settlement with Furukawa Electric Co. Ltd. The settlement resolves a dispute between Delphi and Furukawa Electric over a sales contract for torque and position sensors, Bankruptcy Law360 relates. As reported in the Troubled Company Reporter-Asia on May 22, 2007, Furukawa Electric previously manufactured a power steering sensor, called the Epsilon sensor for Delphi. In April 2004, Delphi terminated the Epsilon Sensor contracts, alleging that Furukawa breached certain product warranties. In October 2004, Delphi filed a lawsuit against Furukawa in the U.S. Circuit Court for the County of Saginaw, Michigan, asserting, among others, Epsilon Sensor-related claims and USUS$25,000,000 in damages. About Delphi Corporation 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 June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 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. FORD MOTOR: To Contribute US$50 Mil. to Visteon Escrow Account ------------------------------------------------------------ Visteon Corporation, Ford Motor Company and Ford-managed entity Automotive Components Holdings, LLC, amended these agreements: 1) The Escrow Agreement, dated as of Oct. 1, 2005, among Ford, the company and Deutsche Bank Trust Company Americas, was amended to, among other things, provide that Ford will contribute an additional US$50 million into the escrow account, and to provide that such additional funds will be available to the company to fund restructuring and other qualifying costs, as defined within the Escrow Agreement, on a 100% basis. 2) The Reimbursement Agreement, dated as of Oct. 1, 2005, between Ford and the company, was amended and restated to, among other things, require Ford to reimburse the company for certain severance expenses and other qualifying termination benefits, as defined in such agreement, relating to the termination of salaried employees who were leased to ACH. Previously, the amount required to be reimbursed by Ford was capped at US$150 million, of which the first US$50 million was to be funded in total by Ford and the remaining US$100 million was to be matched by the company. Any unused portion of the US$150 million as of Dec. 31, 2009, was to be deposited into the escrow account governed by the Escrow Agreement. 3) The Master Services Agreement, dated as of Sept. 30, 2005, as amended, between the company and ACH, was amended to, among other things, extend the term that Visteon will provide certain services to ACH, Ford and others from Dec. 31, 2009, to Jan. 1, 2011. 4) The Visteon Salaried Employee Lease Agreement, dated as of Oct. 1, 2005, as amended, between the company and ACH was amended to, among other things, extend the term that ACH may lease salaried employees of the company from Dec. 31, 2010 to Dec. 31, 2014. 5) The Intellectual Property Contribution Agreement, dated as of Oct. 1, 2005, as amended, among the company, Visteon Global Technologies, Inc., Automotive Components Holdings, Inc. and ACH was amended to, among other things, to clarify the availability for use of certain patents, design tools and other proprietary information. About Visteon Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is an automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company also has corporate offices in Shanghai, China; and Kerpen, Germany; the company has facilities in 26 countries and employs approximately 38,500 people. Visteon Corporation's consolidated balance sheet at June 30, 2008, showed US$7.02 billion in total assets, US$6.93 billion in total liabilities, and US$295.0 million in minority interests, resulting in a US$207.0 million stockholders' deficit. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Aug. 5, 2008, Fitch Ratings has downgraded the issuer default rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects these: (i) the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; (ii) portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and (iii) escalating commodity costs that will remain a significant offset to cost reduction efforts. FORD MOTOR: David Mondragon Named Ford Canada President and CEO --------------------------------------------------------------- Ford Motor Company of Canada, Ltd. appointed David Mondragon as president and CEO, effective Sept. 1, as the company introduces its expanded 2009 model lineup and commits to being the best or among the best in fuel economy with every new Ford product in its segment. "It's an exciting time to join Ford of Canada as we accelerate plans to introduce new fuel-efficient vehicles, especially small cars and crossovers, which are exactly what Canadian consumers are asking for," Mr. Mondragon said. "I look forward to working closely with the Ford of Canada dealers to ensure we are not only meeting, but exceeding customer expectations as we introduce the new products." During his 23 years with Ford, Mr. Mondragon has held a variety of roles in sales and marketing. He currently serves as general manager for the Southwest Region, Ford�s largest U.S. sales region. Mr. Mondragon began his Ford career in an entry-level administrative job at the Edison (New Jersey) Assembly Plant and moved on to serve in a variety of management positions in areas such as marketing programs, field operations, contests and incentives, and sales training. As manager of marketing programs and strategy, Mr. Mondragon directed national incentive programs and led the strategy for more than 80 auto shows across the U.S. "David is the right person to lead Ford of Canada as we launch our new model year. Ford's 2009 product lineup is the best we've ever produced and David has a proven track record of connecting with customers, energizing employees and partnering with our dealers to help drive sales," said Dave Schoch, executive director of Canada and South America, Ford Motor Company. Mr. Mondragon replaces Barry Engle, who announced last week that he is leaving the company to serve as president and CEO of New Holland Agricultural Equipment S.p.A., a unit of CNH Global N.V., effective Sept. 8. "I want to sincerely thank Barry for his many contributions to the Ford Motor Company and to wish him well in his new role," Mr. Schoch said. ELPIDA MEMORY: Shares Fall by Record Following Nomura's Rating Cut ------------------------------------------------------------------ Elpida Memory Inc.'s shares fell by a record in Tokyo trading after Nomura Securities Co. cut its rating on the stock, citing a longer-than-expected slump in demand for the devices, Pavel Alpeyev of Bloomberg News reports. The company's shares, the report relates, fell 11% to JPY2,050 as of 10:40 a.m., September 3, on the Tokyo Stock Exchange, the biggest decline since its listing on Nov. 15, 2004. The stock has fallen 47% this year, compared with a 17% drop for the benchmark Nikkei 225 Stock Average, the report notes. "Even with the seasonal swell in demand, there's no easing of the glut and it's hard to see the market improving soon," Bloomberg news cited Masaya Yamasaki, a Tokyo-based analyst at Nomura, as saying. Mr. Yamasaki cut its investment rating on Elpida to "neutral" from "buy. According to the report, Elpida last month joined Hynix Semiconductor Inc. and Powerchip Semiconductor Corp. in reporting losses in the most recent quarter after a glut drove down prices. Losses at the company will probably continue through the three months ending March 2009, Mr. Yamasaki forecast, the report says. About Elpida Memory Elpida Memory, Inc. -- http://www.elpida.com.-- is a leading manufacturer of Dynamic Random Access Memory (DRAM) integrated circuits. The company's design, manufacturing and sales operations are backed by world class technology expertise. Its 300mm manufacturing facilities, Hiroshima Plant and a Taiwan-based joint venture Rexchip Electronics, utilize the most advanced manufacturing technologies available. Elpida's advanced portfolio features such characteristics as high-density, high-speed, low power and small packaging profiles. The company provides DRAM solutions across a wide range of applications, including high-end servers, mobile phone and digital consumer electronics. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 10, 2007, that Standard & Poor's Rating Services assigned a BB- for Elpida Memory Inc.'s long-term corporate credit rating with a stable outlook reflecting the company's heavy financial burden, which is required to make regular large investments to maintain and improve its competitiveness. FUJI HEAVY: May Help Design Mitsubishi Heavy's Passenger Jets ------------------------------------------------------------- Fuji Heavy Industries Limited may help design Mitsubishi Heavy Industries Ltd.'s regional passenger jet, Makiko Kitamura and Tetsuya Komatsu of Bloomberg News report. Fuji Heavy spokesman Shinichi Murata told Bloomberg News the company is "considering providing support with [its] engineers� and "will not participate in production." According to the report, Fuji Heavy engineering support would follow Toyota Motor Corp.'s investment in the project. Toyota, Fuji Heavy's largest shareholder, is helping Mitsubishi Heavy compete with planes from Bombardier Inc. of Canada and Brazil's Empresa Brasileira de Aeronautica SA, the report says. "Fuji Heavy's participation is probably an extension of Toyota's involvement. Fuji Heavy has a wide range of expertise that includes both cars and planes," Bloomberg News cited Yuuki Sakurai, general manager of financial and investment planning in Tokyo at Fukoku Mutual Life Insurance Co., which oversees the equivalent of US$54 billion in assets, as saying. The company, the report relates, will buy JPY7 billion in common shares in Mitsubishi Aircraft Corp. After the transaction, Toyota will own 10% of the Mitsubishi Heavy unit. Toyota owns 16.5 percent of Fuji Heavy. About Fuji Heavy Headquartered in Tokyo, Japan, Fuji Heavy Industries Ltd. -- http://www.fhi.co.jp-- is manufacturing company engaged in four business segments. The Automobile segment is engaged in the manufacturing, repair and sale of light vehicles, compact cars and standard vehicles. The Industrial Machinery segment offers motors, machinery for agricultural, forestry and constructional use, as well as other machinery and equipment. The Aerospace segment offers airplanes, aerospace-related equipment and parts. The Others segment is engaged in the manufacturing, repair and sale of dustcarts, bus-related parts and houses, as well as the leasing of real estates. The Company distributes its products in both domestic and overseas markets. As of March 31, 2007, Fuji Heavy Industries has 109 subsidiaries and nine associated companies. The Company has a global network. * * * Standard & Poor's Ratings Services lowered its long-term credit rating on Fuji Heavy Industries Ltd. to 'BB+' from 'BBB-' based on diminished prospects for a recovery in profitability and cash flow over the near term along with intensifying competition in the global auto industry. ========= K O R E A ========= * KOREA: Auto Production Drops 16.2% in August ---------------------------------------------- South Korea's production of cars, trucks and buses fell 16.2% in August from the same month last year, hurt by a series of partial strikes over wage disputes and sluggish demand both at home and overseas, Yonhap News reports. Production, the report relates, fell to 243,143 units for the third consecutive month of declines, the Korea Automobile Manufacturers' Association said. According to the report, the association said partial strikes at Hyundai Motor Co. and its affiliate Kia Motors Corp. and weak exports to the United States and Europe were behind the drop. On August 29, 2008, the Troubled Company Reporter-Asia Pacific, citing Reuters, reported that unionized workers at Hyundai Motor Co and Kia Motors Corp had launched another round of partial strikes over a wage deal and working conditions. Union members also planned to stage further partial strikes if they fail to reach agreements with management, the report said. Hyundai's unionized workers started a two-hour walkout on Aug. 27, that is expected to cause the company 1,998 vehicles in lost production, the report noted. In the first eight months of this year, output skidded 2.6% from a year earlier to 2.57 million vehicles, the association told the news agency. * KOREA: Government to Help Credit Defaulters --------------------------------------------- The Korean government will actively implement projects to help credit delinquents repay their debts and start anew through a phased credit recovery program, KBS Global News reports. The Korea Asset Management Corporation, the report relates, said that as the first stage of the program, it will create a KRW200-billion fund this month to reduce the debts of credit defaulters. According to the report, about 460-thousand low-income credit delinquents with less than KRW10 million in loans who are more than three months behind on their debt payments will benefit from the program. =============== M A L A Y S I A =============== APL INDUSTRIES: Group Incurs MYR18.30MM Net Loss in 4th Quarter --------------------------------------------------------------- APL Industries Berhad disclosed that for the fourth quarter ended June 30, 2008, the group incurred MYR18.30 million net loss as compared with MYR21.09 million net loss in the same quarter of 2007. For the fourth quarter ended June 30, 2008, the Group recorded sales revenue of MYR34.4 million which was significantly (33.1%) lower compared to MYR51.4 million achieved during the corresponding quarter in the previous financial year. Operating losses were higher by MYR15.7 million (431.1%) while losses before tax increased by MYR15.1 million (277.1%). In addition to the operating difficulties, the Group also had to take up significant audit adjustments of a non-operating nature which contributed to further losses. Group turnover amounted to MYR34.4 million for the current quarter compared to MYR37.8 million in the preceding quarter. The Group also recorded operating loss of MYR19.3 million and loss before Tax of MYR20.5 million compared to operating profit of MYR1.6 million and profit before tax of MYR152,000 respectively. The drastic deterioration in the Group�s performance was largely due to it being caught in a vicious reducing cashflow cycle which was triggered by a steep rise in latex prices in a very short period of time. The Group�s working capital was further stretched by the sudden government announcement on increased electricity tariffs (by 26%) and fuel prices (gasoline and diesel pump prices rose by 41% and 63% respectively) which resulted in higher inland haulage and logistics costs as well as bio-fuel costs. Overall, the Group has had to operate under extreme and harsh operating conditions due to financial constraints on working capital. As of June 30, 2008, the group's balance sheet showed MYR168.46 million of total assets and MYR141.93 million of total liabilities resulting in a shareholders' equity of MYR26.53 million. APL Industries Berhad is a Malaysia-based investment holding company. Through its subsidiaries, the Company operates in two business segments: Gloves, which is engaged in the manufacture and sale of gloves and other healthcare products, and Investments, which is engaged in investment holding. The gloves segment is operated in three other principal geographical areas apart from Malaysia, which include North America, Asia (other than Malaysia) and Europe. Its direct wholly owned subsidiaries include Asia Pacific Latex Sdn Bhd, which is engaged in manufacturing and sales of latex examination gloves, Medipure Corporation (M) Sdn Bhd, which is engaged in provision of chlorination services and trading of powder free latex gloves, and Norwell International Inc, which is engaged in marketing and distribution of healthcare products. * * * The APLI Group had triggered the Enhanced PN17 criteria and was classified as PN17 in 2007. Since then, the Group has been facing increasing difficulties in terms of its operations and business. The ability of the Group to continue as a going concern is dependent upon achieving future profitable results, generating positive cash flow and continuous financial support from its bankers to meet its liabilities when they fall due. GOLD BRIDGE: Posts MYR844,000 Net Profit in Quarter Ended June 30 ----------------------------------------------------------------- Gold Bridge Engineering & Construction Berhad earned MYR844,000 net profit in the quarter ended June 30, 2008, as compared with MYR21.43 million net loss in the same quarter of 2007. For the company's cumulative results, the group reported MYR1.65 million net loss as compared with MYR49.73 million net loss in the same period of 2007. The group reported a revenue for the current quarter at MYR20.1 million, which is slightly lower compared to the preceding year�s corresponding quarter. The profit before tax for the quarter at MYR0.7 million is a mark improvement compared to the preceding year corresponding period loss of MYR21.9 million. The improved performance is due mainly to less impairment losses provided during the current quarter as compared to the preceding year�s corresponding period. The increase in other operating income comprised of a waiver of interest by a bank where a provision was made in the previous year and the reversal of provision for doubtful debts which was no longer required. The loss after tax at MYR1.6 million for the year is substantially lower than the preceding year�s loss of MYR49.7 million due mainly to the substantial reduction in impairment losses, provision for doubtful debts and other operating expenses. As of June 30, 2008, the group's balance sheet showed MYR708.83 million of total assets and MYR614.96 million of total liabilities, resulting in a shareholders' equity of MYR93.87 million. Headquartered in Kuala Lumpur, Malaysia, Gold Bridge Engineering & Construction Berhad develops residential and commercial properties and provision of civil engineering and general construction services. The Company's other activities include boat building and repairing of ships, manufacturing and supplying of ready-mixed concrete and provision of related services, management of golf and beach resort and investment holding. Operations are carried out principally in Malaysia. The Company has incurred losses in the past. It also defaulted on several loan facilities, which caused it to fall under Bursa Malaysia Securities Berhad's Practice Note 1/2001 category. * * * Ernst & Young have expressed a significant doubt about the group's and the company's abilities to continue as going concerns after auditing annual consolidated audited accounts for the year ended June 30, 2007. The auditor pointed to the group and the company's net losses attributable to equity holders of MYR49,234,514 and MYR24,346,767 respectively and net current liabilities of the group and of the company of MYR115,806,799 and MYR25,919,289 respectively. Furthermore, the group and the company have defaulted in the repayment of bank borrowings totaling to MYR6,311,782 and MYR4,178,366 respectively, while the group and the company have also not paid their tax liabilities of MYR73,380,810 and MYR22,951,425 respectively. LUSTER INDUSTRIES: Posts MYR809,000 Net Loss in 2nd Qtr. 2008 ------------------------------------------------------------- In a filing with the Bursa Stock Exchange, Luster Industries Berhad disclosed that the company incurred MYR809,000 million net loss as compared with MYR1.79 million net loss incurred in the same quarter of 2007. Overall, the Group managed to record a lower loss after taxation of MYR2.2 million for the current period ended June 30, 2008, as compared to a loss after taxation of MYR3.9 million in the last corresponding period. The Group has recorded a revenue of MYR90.2 million for the current period ended June 30, 2008, as compared to the last corresponding period of MYR69.7 million. The increase is mainly due to the contribution from the OEM project in its subsidiary in Johor. The lower gross margin recorded was mainly due to the disposal and written-off of the company�s obsolete inventories. Overall, the company's contract manufacturing division has also recorded an improvement as compared to the last corresponding period. Measures taken to address the adverse financial performance last year has seen improvement and managed to contain further deterioration of the financial performance. As of June 30, 2008, the company's consolidated balance sheet showed MYR168.32 million of total assets, MYR143.62 million of total liabilities, resulting in a shareholders' equity of MYR24.71 million. Luster Industries Berhad is a Malaysia-based investment holding company that provides management services to its subsidiaries. The company is principally engaged in the manufacture of precision plastic parts and components, and sub assembly and full assembly of plastic parts and products. During the year ended December 31, 2005, the company acquired Mctronic Plastic Sdn. Bhd., Mature Step International Limited and Poly Link Limited. On June 29, 2006, the company disposed of its investment in its joint venture, Luster Nakazawa R&D Sdn Bhd, representing 51% of Luster Nakazawa R&D Sdn Bhd. * * * As reported by the Troubled Company Reporter-Asia Pacific on May 8, 2008, the company was considered as an affected listed issuer of the Practice Note No. 17/2005 of Bursa Malaysia Securities Berhad as the external auditors have expressed a modified opinion on the company�s going concern and on its consolidated shareholders� equity amounting to MYR25,191,597, which is less than 50% of its total issued and paid-up share capital of MYR61,183,000. WONDERFUL WIRE: Posts MYR14.11 Mil. Net Loss in Qtr. Ended June 30 ------------------------------------------------------------------ Wonderful Wire & Cable Berhad posted MYR14.11 million net loss in the second quarter ended June 30, 2008, as compared MYR1.06 million net loss recorded in the same quarter of 2007. For the current quarter, the group incurred MYR19.09 million net loss as compared with MYR3.60 million net loss reported in the same quarter of the preceding year. The current quarter results has recorded a revenue of MYR5.3 million compared to MYR7.56 million in the preceding quarter. The lower turnover was due to the group difficulties in accepting sales orders in view of working capital constraints. The group's current quarter revenue has decreased by MYR4.45 mil. From MYR9.7 million as compared to the previous year corresponding quarter to MYR5.30 million in this quarter. The group registered a loss before taxation of MYR14.12 million an increased of MYR13.06 million, compared to the preceding year corresponding quarter of MYR1.06 million. The significant drop in turnover was due to the group being unable to accept new sales orders as a result of its working capital constraint and higher copper cathode prices. The current production level is still below breakdown point. In the current quarter, the group made a provision of MYR3.22 million and MYR5.2 million, for the amount due from Transmission Resources Sdn Bhd, a former subsidiary company that was disposed and the balance of the disposal consideration due from the purchaser respectively. As of June 30, 2008, the company's balance sheet showed MYR56.43 million of total assets, MYR83.70 million of total liabilities, resulting in a shareholders' deficit of MYR27.27 million. About Wonderful Wire Wonderful Wire & Cable Berhad is a Malaysia-based company that is engaged in the manufacture and trading of all kinds of electrical wires and cables. The principal activities of the company's subsidiaries include the investment holding, provision for oil, gas and petroleum engineering, and design engineers and contractors. Its subsidiaries include Wonderful Industries Sdn. Bhd., WWC Oil & Gas (Malaysia) Sdn. Bhd., WWC Sealing (Malaysia) Sdn. Bhd., Transmission Resources Sdn. Bhd., WWC Engineering (M) Sdn. Bhd. and Wonderful Wire & Cable. In November 2006, the company acquired the remaining 40% interest in WWC Sealing (Malaysia) Sdn Bhd. The principal activity of WWC Sealing (Malaysia) Sdn Bhd is to design, manufacture and market different ranges of industrial seal and gasket. On December 3, 2007, the company was classified as an affected listed issuer pursuant to Bursa Malaysia Securities Berhad's Practice Note 17 category as the company's shareholders' equity on a consolidated basis for the unaudited results is less than 25% of the issued and paid-up capital for the third quarter ended Sept. 30, 2007. ==================== N E W Z E A L A N D ==================== ADVANCE PAINTING: Liquidators Set September 5 as Claims Bar Date ---------------------------------------------------------------- Pursuant to section 241(2)(c) of the Companies Act 1993, Damien Grant and Steven Khov, insolvency practitioners, were appointed liquidators of Advance Painting Limited on Aug. 5, 2008. The liquidators set Sept. 5, 2008, as the last day for creditors to file their proofs of debt. Creditors and shareholders may direct their inquiries to: Waterstone Insolvency PO Box 352 Auckland Freephone: 0800CLOSED Facsimile: 0800FAXWSI BLAKE RANCH: Proofs of Debt Due on September 10 ----------------------------------------------- Pursuant to Section 255(2)(a) of the Companies Act 1993, the shareholders of Blake Ranch Limited resolved that the company be liquidated and that Carlos da Silva, of Deloitte, Chartered Accountants, be appointed as liquidator. Creditors are required to file their proofs of debt by Sept. 10, 2008, to be included in the company's dividend distribution. The liquidator can be reached at: Carlos da Silva PO Box 17 Hamilton Telephone: (07) 838 4800 Facsimile: (07) 838 4810 BLAKE STATION: Liquidators Set September 10 as Claims Bar Date -------------------------------------------------------------- Pursuant to Section 255(2)(a) of the Companies Act 1993, the shareholders of Blake Station Limited resolved that the company be liquidated and that Carlos da Silva, of Deloitte, Chartered Accountants, be appointed as liquidator. Creditors are required to file their proofs of debt by Sept. 10, 2008, to be included in the company's dividend distribution. The liquidator can be reached at: Carlos da Silva PO Box 17 Hamilton Telephone: (07) 838 4800 Facsimile: (07) 838 4810 JATCOM PRINTING: Wind-Up Petition Hearing Set for September 8 ------------------------------------------------------------- The High Court at Rotorua will hold a hearing on Sept. 8, 2008, at 10:45 a.m., to consider putting Jatcom Printing Limited into liquidation. The application was filed on July 9, 2008, by the Commissioner of Inland Revenue. The plaintiff's address for service is at: Inland Revenue Department Legal and Technical Services 1 Bryce Street (PO Box 432) Hamilton Telephone: (07) 959 0416 Facsimile: (07) 959 7614 Rachel L. Scott is the plaintiff's solicitor. MILLENNIUM CAFE: Liquidators Set September 12 as Claims Bar Date ---------------------------------------------------------------- The High Court at Auckland has appointed Damien Grant and Steven Khov, insolvency practitioners, as liquidators of Millennium Cafe Limited. The liquidators set Sept. 12, 2008, as the last day for creditors to file their proofs of debt. Creditors and shareholders may direct their inquiries to: Waterstone Insolvency PO Box 352 Auckland Freephone: 0800CLOSED Facsimile: 0800FAXWSI OCEANA GROUP: Proofs of Debt Due on September 12 ------------------------------------------------ The High Court at Auckland has appointed Vivien Judith Madsen- Ries, insolvency specialist, and David Stuart Vance, chartered accountant, as liquidators of Oceana Group Limited. The liquidators set Sept. 12, 2008, as the last day for creditors to file their proofs of debt. Creditors and shareholders may direct their inquiries to: Liubov Medvedeva Level 8 Deloitte House 8 Nelson Street, Auckland Telephone: (09) 309 4944 Facsimile: (09) 309 4947 PARTAGAS FOUNDATION: Proofs of Debt Due on September 15 ------------------------------------------------------- Pursuant to Section 255(2)(a) of the Companies Act 1993, the shareholders of Partagas Foundation Limited resolved that the company be liquidated and that Grant Bruce Reynolds of Reynolds and Associates Limited, be appointed as liquidator. Creditors are required to file their proofs of debt by Sept. 15, 2008, to be included in the company's dividend distribution. The liquidator can be reached at: Grant Bruce Reynolds Reynolds and Associates Limited PO Box 259059 Greenmount, Auckland Telephone: (09) 526 0743 Facsimile: (09) 526 0748 PROVENCOCADMUS: Posts NZ$36.3 Mil. Net Loss in FY2008 ----------------------------------------------------- ProvencoCadmus Limited disclosed its financial results for the year ended June 30, 2008. The company reported a net loss of NZ$36.3 million after restructuring costs, IP impairment and write off of tax losses. The company said that merger between Provenco and Cadmus was finalised on May 8, 2008, and the annual result includes a full year for Provenco and the last two months of the 2008 financial year for Cadmus. The Group reported revenues of NZ$160.9 million and a positive operating cash flow position of NZ$9.8 million for the 12 months ended June 30, 2008. In line with market guidance given in June 2008, the Group delivered a NZ$9.9 million deficit before interest, tax, depreciation, amortisation and impairment (EBITDA and impairment). NZ$3 million of this amount represents costs associated with the merger, restructuring and acquisition activity. The balance of NZ$6.9 million represents the trading deficit for the year. Rick Christie, Chairman of ProvencoCadmus, said "the 2008 financial year has been challenging for the company and the overall financial loss of NZ$36.3 million, after asset impairment and adjustments to taxation assets, is very disappointing." Trading results for the year were impacted by a number of factors throughout the business. -- The Payments business was affected by the significant downturn in the retail sector, which resulted in an immediate reduction in sales for EFTPOS products and services. The technology integration side of the business also experienced a similar reduction with noticeable delays in orders from its retail customers. -- Potentially lucrative opportunities still exist for the internationally based retail oil business, but the business continued to experience delays with new orders. The costs associated with supporting this business ahead of firm orders is significant with a large part of the post-merger restructuring focused on reducing this cost base. -- Results for the Vantex distribution business was also lower than expected. Vantex achieved good results in New Zealand and Asia, but despite improving its market share, the Australian business experienced market softness in the later part of the year. Merger Activities Following some tough years for both Provenco and Cadmus, the two businesses merged in order to achieve synergies and the scale required to compete effectively in global markets. Restructuring and business realignment started immediately following the merger with very significant progress having been made, by balance date. The combined organisation has been realigned into two business units. This process was intensified in recognition of the need to realign the Group in the face of a material change in market conditions following the merger. This process of change was substantially completed by June 30, 2008. Post-merger restructuring will remove approximately NZ$20 million of cost on an annual basis, well above the NZ$7.6 million identified before the merger. As part of the business realignment, the Group has also completed the appointments of an additional independent director, Christchurch businessman and company director Bruce Irvine; and a new group CFO, Gavin Sebire, who has a strong background in accounting and finance with experience in the retail and service industries. 2009 Financial Year Budget The Group has developed a base case budget for the 2009 financial year which reflects core business that is readily visible at this time. The company is aware of and working towards further potential revenue, but this will only be factored in when there is a high level of certainty of securing it. Even with the Group's more conservative revenue approach, budget assumptions still show a return to profitable trading in the 2009 financial year. Mr. Christie said the merged company has been very realistic in its assessment of the current market conditions and hence has removed a significant level of cost from the business. Impairment Review In the context of a base case budget for the 2009 financial year, the board has undertaken a fundamental review of the Group's intellectual property assets. This approach has an impact on the carrying value of these assets, as their value must meet strict criteria in terms of certainty of recovery within a limited time frame. As a result, the NZ$12.7 million intellectual property assets relating to the international oil forecourt business have been written down by NZ$11.2 million in the 2008 financial year. Additionally, the carrying value of the taxation asset of NZ$5.6 million (as at Dec. 31, 2007) relating to accumulated losses in the New Zealand businesses has been written back. This adjustment is a reflection of the uncertainty around profit projections for the New Zealand businesses. The Group's pre-tax earnings are largely domiciled in Australia and Asia during the 2009 financial year and are not eligible for offset against the New Zealand tax losses. While having an impact on the results now, these write-offs will assist the Group's future earning potential. Business Recapitalisation With the realignment of the business well advanced and a return to profitability budgeted, the directors are now considering a range of funding options. A capital raising opportunity was foreseen earlier, but based on expert advice and current equity market conditions; the directors are exploring other funding options, including the sale of certain assets. Mr Christie said the Group expects to be able to advise the market of specifics in this regard, by late September. The Group said it has secured in July 2008 an additional NZ$8 million of working capital facility underwritten by cornerstone shareholders Todd Capital and Peter Maire. This facility provides a bridge while the Group progresses with the recapitalisation exercise. About ProvencoCadmus Based in New Zealand, ProvencoCadmus Limited formerly Provenco Group Limited (NZX:PVO)-- http://www.provencocadmus.com/ -- designs, builds, distributes and services payment and transaction solutions. In Australasia, the company supplies payments and transaction technology, countertop, mobile and wireless retail hardware, and globally it supplies transaction, forecourt and site management systems for the retail oil industry. It has operations in 25 countries across five continents. On May 8, 2008, Provenco Group Limited (PVO) and Cadmus Technology Limited (CTL) completed their merger, with the merged company adopting the interim name of ProvencoCadmus. TAURANGA VALENTINES: Placed in Receivership ------------------------------------------- Tauranga Valentines went into receivership, taking the Valentines buffet restaurant chain down to 11 outlets across the North Island, Fiona Robertson of the National Business Review reports. According to the report, receiver Stephen Tietjens said he had only just taken up the assignment and could not comment on the circumstances. The Business Review relates that the closure comes some months after Valentines founders Geoff and Marina MacRae added a majority stake in the Cobb & Co franchise chain of 12 restaurants to their empire. The Tauranga Valentines was one of the newest outlets, opened in 2004 and offering both indoor and outdoor dining, the report says. TWA LIMITED: Commences Liquidation Proceedings ---------------------------------------------- The High Court at Auckland held a hearing on Aug. 27, 2008, to consider an application putting TWA Limited into liquidation. The application was filed on April 29, 2008, by the Commissioner of Inland Revenue. The plaintiff's address for service is at: Inland Revenue Department Legal and Technical Services 17 Putney Way (PO Box 76198) Manukau, Auckland 2241 Telephone: (09) 985 7274 Facsimile: (09) 985 9473 Sandra Joy North is the plaintiff's solicitor. * NEW ZEALAND: Economy May Emerge From Recession, NZIER Says ------------------------------------------------------------ New Zealand's economy will probably emerge from a nine-month recession in the fourth quarter, Tracy Withers of Bloomberg News reports, citing forecasts from the New Zealand Institute of Economic Research Inc. Indications are that New Zealand is currently experiencing a recession with real GDP likely to decline for the three consecutive quarters starting in March 2008, Brent Layton, executive director of NZIER said in a statement. In the March 2008 quarter, real GDP declined 0.3%, which was the first negative quarterly growth for the past two years. Most recent domestic trading activity indicators from NZIER�s Quarterly Survey of Business Opinion (QSBO) suggest that real GDP declined in the June quarter, and is likely to decline again in the September quarter, the statement says. The current recession is unusual in that the slowdown in economic activity has been spread across the major areas of expenditure. Often one of either consumption, investment or the external sector leads the way. This time, all three areas of expenditure have chimed in together. The economy has been hit by a salvo of self- inflicted and external negative factors. Private consumption has been affected by high prices of energy and food and higher interest rates and falling house prices. Real private consumption declined 0.4% in the March 2008 quarter, which is the first contraction in this component of GDP in the past three years. Total investment declined 2.0% in the March 2008 quarter, which is the first negative growth for this activity in two years. Housing investment has fallen as house prices have fallen and net migration has dropped. Although export prices have remained relatively good, the volume of exports of goods and services declined 1.8% in the March 2008 quarter. This was driven mainly by a 3.8% decline in the volume of dairy products exports due to lower production as a result of last season�s North Island drought. On the other hand, import volumes have remained strong. Mr. Layton said "We believe the bottom of the cycle has been reached. The increases in energy and food prices appear to be past their peak. Interest rates have started to ease, albeit slowly. Wage growth, which always lags behind the conditions in the labour market, will remain high. The tax cuts in October will boost consumer confidence and spending. All these factors will support a return to growth in private consumption." "Moreover, we think the property market will not fall much further from around current levels. We think it will be supported by private investors looking for safe havens for their funds which they are now very reluctant to leave with finance companies. The share market is unlikely to be an attractive alternative to many of these people," Mr. Layton said. Mr. Layton added "While we think the bottom has probably been reached and the economy will get better in the short-term, we do not think full recovery to robust economic health will be quick and without further adjustments. Inflation is still high, and likely to go higher. More importantly, we think the Reserve Bank in lowering rates in July has fed inflationary expectations and as a result the ability of the Bank to move rates much lower is constrained. We are likely to have relatively high rates for some considerable time and this will tend to support the value of the currency and constrain investment and job growth." * NEW ZEALAND: Reserve Bank to Regulate Non-bank Deposit Takers --------------------------------------------------------------- Non-bank deposit takers such as finance companies, building societies, and credit unions will be required to disclose financial information to the Reserve Bank under new legislation passed yesterday, Sept. 3, 2008, Aaron Lim of the BusinessDay.co.nz reports. Reserve Bank Governor Alan Bollard said in a statement "Today represents a significant step forward in helping improve the future resilience of New Zealand�s non-bank financial sector." The Reserve Bank's new responsibilities come after a spate of finance company failures, which has affected approximately NZ$3.7 billion of investors money, the BusinessDay.co.nz says. The Reserve Bank Amendment Bill (No 3) was passed making the Reserve Bank the regulator of non-bank deposit takers. Dr. Bollard said he is confident that the new legislation will provide a strong basis for confidence in the deposit-taking sector, which includes finance companies, building societies and credit unions. The Bank�s role will be to require information from trustees of deposit takers, to develop and enforce minimum prudential and governance requirements and to administer credit rating requirements. "We are encouraging non-bank deposit takers to move towards adopting the new regulatory standards as soon as possible. Trustees will continue to be front-line supervisors of deposit takers, and we look forward to working proactively with trustees as they work towards a more enduring role in the sector," Dr. Bollard said. "Credit ratings from reputable rating agencies will play an important role in the new regulatory arrangements. Credit ratings assist depositors to compare the level of risk they are taking with the return they are getting when they invest in a deposit taker," commented Dr. Bollard. The Reserve Bank will engage with stakeholders, including deposit takers and trustees, in developing the regulations once the legislation has been enacted. The Bank will also work with the Securities Commission to revise and simplify public disclosure requirements for deposit-takers. The Bank will be working to develop and introduce new regulations for the industry over the next two years. These regulations will introduce consistent standards for key risk areas such as financial strength (capital), access to cash (liquidity) and lending to associated parties. It is expected that these new rules will be introduced in 2010. ===================== P H I L I P P I N E S ===================== INDUSTRIAS METALURGICAS: Fitch Holds 'B' Foreign Currency IDR ------------------------------------------------------------- Fitch Ratings has affirmed these ratings of Industrias Metalurgicas Pescarmona S.A.: -- Foreign currency Issuer Default Rating at 'B'; -- Local currency IDR at 'B'; -- US$225 million notes due in 2014 at 'B/RR4'; -- US$65 million notes due in 2009 at 'B/RR4'; -- National Scale Ratings at 'A-(arg)'. The Recovery Rating of 'RR4' assigned to the notes indicates average recovery prospects in the event of default. The Rating Outlook is Stable. IMPSA's ratings are supported by strong global demand for hydroelectric and wind technology and equipment, which has boosted IMPSA's backlog to US$1.8 billion as of April 2008 from $481 million as of April 2006. The renewable energy projects of the company often take 30 months to complete. Revenues are booked according to percentage of completion of the project, and most contracts include pricing adjustment clauses that protect the company's profit margins against increases in construction costs. Consequently, the increase in backlog adds certainty to the company's cash generation in the medium term. Also considered in IMPSA's ratings are its geographic revenue and asset diversification. This diversification hedges the company's cash flow against the volatile Argentine economy and allows it to generate hard currency which can be used for debt repayment. For the fiscal year ended Jan. 31, 2008, U.S. dollar-denominated sales accounted for approximately 70% of its total revenue. This percentage should increase in the future due to the composition of most of the company's backlog. Balanced against these strengths are the company's high leverage and the concentration of its cash flow in a few large projects in developing countries - namely Brazil, Venezuela, Colombia, and Malaysia. Also considered in the company's rating is its rapid pace of growth, which leads to high working capital needs. While market conditions are considered favorable for IMPSA at this moment, a sudden downturn in some of its key markets would have a negative effect IMPSA's ability to add new contracts. Additionally, even though Argentina is not an important sales market for IMPSA, an increase in economic uncertainty in that country could lead to a decline in backlog as potential customers shy away from doing business with the company due to concerns about its ability to finance its working capital needs. In the last few years, the company has accessed international markets for working capital financing. For the 12 months ended Jan. 31, 2008, IMPSA's revenues grew to US$285 million from US$267 million in the prior year, while its EBITDA grew to US$67 million from US$57 million. This growth was the result of the maturity of several projects. During this time period, IMPSA's cash flow from operations was negative due to the large working capital needs that were required to fund the development of several projects. IMPSA had US$415 million of debt and US$154 million of cash and marketable securities as of Jan. 31, 2008. US$57 million of IMPSA's debt was structured without recourse as project finance debt for wind farm projects in Brazil. These figures translate into a total debt-to-EBITDA ratio of 5.2 times and a net debt-to-EBITDA ratio of 3.1x. For the quarter ended April 30, 2008, IMPSA's total debt remained relatively unchanged at US$417 million (US$66 million structured as project finance). Cash and marketable securities balance fell to US$53 million, however, due to the high working capital needs of its projects. The company's debt increased during June as it issued US$65 million of notes due 2009 to finance the working capital needs for the year. Fitch expects the company will roll this debt over. An improvement in credit metrics is foreseen as the company's EBITDA level is expected to reach US$120 million during the fiscal year ended Jan. 31, 2009. The growth in EBITDA should come from the completion of several projects that are currently in backlog. The main hydro projects are Porce III (Colombia), Bakun (Malaysia), Dardanelos (Brazil), Simplicio (Brazil), Macagua (Venezuela) and Tocoma (Venezuela). IMPSA major wind projects are Caera and Santa Catarina, both located in Brazil. The Percarmona family owns 93.73% of Industrias Metalurgicas Percarmona S.A.I.C. y F (IMPSA) through Corporacion IMPSA S.A. IMPSA is engaged in providing integrated solutions for renewable energy, including hydroelectric and wind power projects and associated equipment, as well as the Port Systems, auto parts and environmental services industries. IMPSA has a solid international presence, marketing and distributing its products and services from its branches and representative offices in Argentina, Brazil, China, Colombia, Ecuador, U.S., the Philippines, India, Malaysia and Venezuela. ================= S I N G A P O R E ================= E3 HOLDINGS: Posts SGD4.49 Mil. Net Loss in Full Year 2008 ---------------------------------------------------------- E3 Holdings Limited disclosed with the Singapore Stock Exchange Limited its annual report for the financial year ended June 30, 2008. The group incurred two consecutive net year loss of SGD4.49 million and SGD2.37 million respectively in 2008 and 2007. The group's revenue increased by 73% from SGD511,000 in the previous financial year ended June 30, 2007, (FY2007) to SGD884,000 in the current financial year ended June 30, 2008 (FY2008). The increase was mainly due to increase in trading sales. Cost of sales increased by 111.3% to SGD581,000 due to increase in trading sales which has a lower margin. Increase in other operating income of 791.9% to SGD660,000 was due to income accrued for expenses relating to China project recoverable from third party. The increase of 55.8% to SGD3.30 million in administrative expenses was mainly due to expenses incurred in developing new businesses, especially the real estate segment in PRC as well building up of the renewable energy division and education division. While the increase in other operating expenses of 480.9% to SGD2.04 million was mainly due to writing off of deposit, project expenses and management fees incurred in relation to the project. As of June 30, 2008, the group's balance sheet showed SGD30.55 million of total assets, SGD10.71 million of total liabilities, resulting in a shareholders' equity of SGD19.84 million. E3 Holdings Ltd., formerly ei-Nets Limited, is a Singapore-based investment holding company. The company operates in two segments: information technology (IT) consultancy services (Consultancy) and selling of computer equipment and products (Trading). The company's wholly owned subsidiary, Ei-Infocomm Pte Ltd Provides system integration solutions and distributes telecommunication- related equipment. The foreign subsidiary of the company is Ei- Nets (Beijing) Ltd. In April 2007, Englo Real Estate Development Pte Ltd (Englo), a wholly owned subsidiary of the company, entered into a Cooperation Agreement with Changchun JingYue Economic Development Zone to co-develop a Bio-tech Business Centre in Changchun. In January 2008, the company incorporated two subsidiaries, E3 Solar Technologies Pte Ltd and E3 Solar Marketing Pte Ltd. GOLDTRON LTD: Posts SGD3.60 Mil. Net Loss in Full Year 2008 ----------------------------------------------------------- In a filing with the Singapore Stock Exchange Limited, Goldtron Ltd disclosed that the group posted two consecutive net year loss of SGD3.60 million and SGD3.76 million in the years ended June 30, 2008, and 2007 respectively. The revenue for the group for FY2008 was SGD112.3 million, relatively unchanged as compared to SGD112.60 million in FY2007. The trading segment, which consists of trading in electronics components although under intense competitive market contributed a slight increase of 0.6% to SGD95.8 million in FY2008 as compared to SGD95.2 million in FY2007. The other remaining manufacturing segment representing electroplating services, aluminum extrusion, die casting and machining manufacturing services contributed SGD16.5 million in FY2008 as compared to FY2007 of SGD17 million, a slight decrease due to lower loading from customers. Overall gross profit margin decreased from 13.2% in FY2007 to 12.4% in FY2008. Dynamic competitive market, aggressive price reduction to customers and the weakening of US dollar against currency operating in different countries have contributed to price erosion resulting in lower gross profit. Other operating income included gain on disposal of a leased building held for sale of SGD0.9 million and disposal of financial assets at fair value through profit and loss of SGD0.9 million. Higher distribution and administrative expenses were mainly due to additional operating costs incurred by the new business in dental products distribution as well as exploring new businesses for the group. Other operating expenses included foreign exchange loss of SGD1.5 million, which was attributable to the weakening of the US dollar against the operating currency in the group's subsidiary companies operating in different countries. Finance costs were lower by 50% declining from SGD4 million in FY2007 to SGD2 million in FY2008. The repayment of subsidiaries' bank loans have resulted in a decrease in the finance costs. Tax charged for FY2008 of SGD1.6 million as compared in FY2007 of SGD.6 million showed an increase of SGD1 million. This was due to group tax relief on transfer of losses between subsidiary companies disallowed by IRAS. As of June 30, 2008, the company's balance sheet showed SGD120.25 million of total assets, SGD70.07 million of total liabilities, resulting in a shareholders' equity of SGD50.18 million. Goldtron Limited is an investment holding and management company. The two segments of the company's business are the manufacturing segment , which represents electronic manufacturing services (EMS), electroplating services, aluminum extrusion, die casting and machining manufacturing services, and trading segment, which represents trading and distribution of electronic components, hard disk drive components and other computer related products. In June 2008, the company announced that Life Glow Asia Pte Ltd (LGA) was a subsidiary of Life Glow Corporation Pte Ltd (LGC), which became a subsidiary of the company. In July 2008, Dynamar Holdings Pte Ltd, the company's wholly owned subsidiary, sold its subsidiaries Dynamar Taiwan Co. Ltd and Dynamar Computer Products (Hong Kong) Limited, to Yosun Industrial Corporation. In August 2008, the company announced that Premech Holdings Limited became a 60%-owned subsidiary of the company. HOUSING AND URBAN: Fitch Lifts LT ID Rating to 'BBB-' from 'BB+' ---------------------------------------------------------------- Fitch Ratings has upgraded the Long term Issuer Default Rating of India-based Housing and Urban Development Corporation Ltd. to 'BBB-' from 'BB+' and the Short term IDR to 'F3' from 'B'. These ratings have been upgraded as a consequence of upgrading HUDCO's Support rating to '2' from '3' and the Support Rating Floor revised to 'BBB-' from 'BB+'. The agency has consequently upgraded HUDCO's National Long-term rating to 'AA+(ind)' from 'AA(ind)', while affirming the National Short-term rating at 'F1+(ind)'. The Rating Outlook is currently Stable. The ratings upgrade reflects Fitch's expectations of more tangible forms of future government (which owns 100% of HUDCO's equity) support that will enable HUDCO to more effectively implement its public policy role of financing low cost housing and urban infrastructure in India. Such government support could take various forms including tax concessions for HUDCO's borrowings, an interest rate subsidy for borrowings invested in low-cost housing, periodic government equity infusions and even explicit 'support letters' to help HUDCO raise domestic funds more efficiently. Fitch expects the enhanced support to revive HUDCO's funding competitiveness, which had suffered compared with commercial Indian banks in the last 3-4 years, resulting in its loan portfolio shrinking. The proposals are currently being examined by the government and the initial indications are that there is recognition of the need for more concrete forms of government support in order to enable HUDCO discharge its role effectively. The enhanced support level as reflected in its new Support rating of "2" results in an upgrade in its international rating to "BBB-", which is the same as that of the Indian sovereign. The agency notes that if there is a change in the government's stance to support HUDCO or a downgrade in India's Local Currency Long Term IDR (BBB- with Negative Outlook), Fitch's rating of HUDCO could be downgraded. HUDCO's National Long-term rating of 'AA+(ind)' is upgraded given the relative mapping between international and national ratings and while reflective of what Fitch expects to be the enhanced level of government support in future, it also reflects HUDCO's weaker financial position compared with the highest rated Indian entities. About 70% of HUDCO's loans are to state government entities or carry guarantees from state governments, some of which are in poor financial health. This, together with the concentration risk in the loan portfolio, has resulted in higher non-performing loan ratios compared with commercial banks in India. However, the close working relationship with the government has meant that recoveries are ultimately made, and to date HUDCO has not registered any losses on its state government guaranteed portfolio. HUDCO is engaged in financing urban infrastructure (72% of total loans at FYE08) and the housing needs primarily of weaker sections of society. It operates through regional offices in 20 cities across India. ICONIC HOLDINGS: Posts SGD2.76 Mil. Net Loss in FY2008 ------------------------------------------------------ Iconic Holdings Limited incurred SGD2.76 million net loss in the full year ended June 30, 2008, as compared with SGD1.86 million net loss in the recorded in the previous year. Continuing Operations Revenues from continuing operations was flat at SGD652,000 mainly from Hernon (Asia) Pte Ltd. Administration expenses had increased from 949,000 to SGD2.56 million as a result of expenses relating to the disposal of our coatings business. Discontinued Operations Revenue had decreased marginally from SGD39.1 million to SGD38.8 million. Global economic uncertainties brought about by the sub-prime loan crisis and rising energy prices affected out sales revenues in all our operating units. With the completion of the sale of the sale of the coatings business as announced on July 31, 2008, the company does not have any core business and its assets consists mainly cash. The company is currently exploring acquiring new assets and/or businesses to fulfill the SGX-ST's listing requirements. Distribution & selling as well as the technical expenses had increased by 13% from SGD4 million to SGD4.5 million as a result of the acquisition of a new Chinese subsidiary in July 2007. Administrative expenses had decreased 2% from SGD3.2 million to SGD3.1 million. This was mainly due to the higher doubtful debts provisions made and the higher exchange losses incurred in FY2007. If not for these, there would be an increase of SGD676,000 brought about by the acquisition of the new subsidiary. Net assets had decreased from SGD23 million to SGD21.5 million as a result of the losses incurred and higher translation losses due to the depreciating Vietnamese Dong and Malaysian Ringgit vis- a-vis the Singapore Dollar, this was offset by proceeds from issue of new shares during the financial year. There was a cash outflow as a result of the losses incurred and the purchases of property, plant and equipment for FY2008. Iconic Holdings Limited, formerly known as Inchem Holdings International Limited is an investment holding company. The company provides management services and purchasing of raw materials for its subsidiaries. The company's primarily derived its revenue from the manufacture and sale of wood surface coatings. The company's subsidiaries include Intelchem Coatings Pte Ltd, Inchem Technology Centre Pte Ltd, Inchem (HK) Limited, Hernon (Asia) Pte Ltd and Colorman Coatings Pte Ltd. In July 2008, The Sherwin-Williams Company acquired the Liquid Coatings subsidiaries of Inchem Holdings of Inchem Holdings International Limited. MITSUBISHI ELECTRONICS: Fixes Sept. 29 as Last Day to File Claims ----------------------------------------------------------------- Mitsubishi Electronics Manufacturing Singapore Private Limited, which is voluntary liquidation, fixes September 29, 2008, to be included in the company's dividend distribution. The company's liquidators are: Yeo Chin Hoo Takashi Kobayashi c/o 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 RANHILL BERHAD: Fitch's Rating Unmoved by Full-Year Fin'l Results ----------------------------------------------------------------- Fitch Ratings has said there will be no immediate change to Malaysia-based Ranhill Berhad's Issuer Default Rating of 'B' with a Stable Outlook following the company's announcement of its full- year results. Ranhill reported a net loss after tax of MYR719 million in the financial year ended 30 June 2008. Ranhill's reported losses are attributable to non-cash items which have no immediate impact on its debt servicing ability; the majority of such non-cash charges relate to the Melut-basin development project in Sudan. In Q408, Ranhill provided MYR316 million on account of cost overruns incurred on this project, and a further MYR240 million due from its JV partner in this project. Fitch highlights that when Ranhill's ratings were affirmed in February 2008, no upside from this project was considered. In addition to the aforesaid provisions, Ranhill also registered a loss of MYR48 million arising from the disposal of some of its investments in the oil and gas exploration segment. Ranhill's liquidity continues to be weak with the profitability of Ranhill's Engineering and Construction segment in FY08 affected by cost overruns and delays in several other projects, including the largest project on its orderbook, a housing project in Libya which is valued at MYR13 billion (approximately 70% of its orderbook). The agency understands that the company is currently having negotiations with the Libyan government for the amendment of contract value to reflect the increased costs. Given the significant size of this project, Ranhill failing to make positive cash generation from this project will adversely affect its ratings. The management has taken several initiatives to improve the liquidity of the company. Chief among them is the restructuring of the power and utilities businesses. Following the privatization of Ranhill Utitilites Berhad in Q408, Ranhill now has access to RUB's excess cash generation post-debt servicing, which will improve its liquidity. In addition, there has been some rationalization in Ranhill's investment portfolio in FY08, including the divestment of investments in the energy exploration space. Given Ranhill's weak liquidity and the uncertainties concerning the investments required and the success of such exploratory projects, exiting from these ventures is viewed by Fitch as positive for its financial and operating profile. SINGAPORE LEASING: Creditors' Proofs of Debt Due on September 12 ---------------------------------------------------------------- The creditors of Singapore Leasing International (Pte) Ltd, which is in liquidation, requires its creditors to file their proofs of debt by September 12, 2008, to be included in the company's dividend distribution. The company's liquidator is: Ong Yew Huat One Raffles Quay North Tower, Level 18 Singapore 048583 ********* 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 ***