/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/080924.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, September 24, 2008, Vol. 11, No. 190 Headlines A U S T R A L I A ACCESS 31: License Cancelled, Winds-Up Business ANT DEVELOPMENTS: Members and Creditors to Meet on September 30 AK SERVICES: Liquidator to Give Wind-Up Report on September 29 ARMSFURY PTY: Members Opt to Liquidate Business AUSTRALIAN MOWER: Joint Meeting Set for September 29 BEDDIA PTY: Liquidator to Present Wind-Up Report on September 29 CONSTRUCTIONS METROPOLIS: Joint Meeting Set for September 30 COVENANT TRUSTEE: Receives Purchase Offer, Puts Business for Sale DELUXE PLUMBING: Members and Creditors to Meet on September 29 ENVIRONINVEST LTD: Appoints Administrator, Placed in Receivership GBS GOLD: Appoints Administrators to Australian Subsidiaries HAMPERS HOLDINGS: Members' Final Meeting Set for September 29 KANE'S CRANES: Members Opt to Liquidate Business NATURAL FUEL: Appoints Administrators to 50% Owned Joint Venture NOMURA HOLDINGS: To Buy Lehman Brothers' Unit in Australia PAN PHARMACEUTICALS: Fined AU$10 Million for Falsification THILKA PTY: Liquidator to Give Wind-Up Report on September 29 ULTIMATE CONCRETING: Joint Meeting Slated for September 29 WESTAFF INC: Has Until March 9 to Comply with Nasdaq's Price Rule * AUSTRAIA: ASIC's Clarifies Prohibition on Short Selling C H I N A CHINA MERCHANTS: Inks Deal to Buy 60.5% of Trust Investment SHANDONG ZHOUYUAN: Files Amended 2007 Annual Report SHANGHAI ZENDAI: Fitch Affirms 'B+' LT Issuer Default Rating SINOBIOMED INC: Names Lionel Choong as Chief Financial Officer * CHINA: Fitch Says Despite Profits, Banks Shows Emerging Strains H O N G K O N G CITILINK INVESTMENT: Members and Creditors to Meet on October 23 CYBERNET: Members' Final Meeting Set for October 20 FUEL AND MARINE: Placed Under Voluntary Liquidation HONG KONG ARCHITECTURAL: Creditors' Proofs of Debt Due on Oct. 24 MAXWING LOGISTICS: Placed Under Voluntary Liquidation NEW WORDLWIDE: Placed Under Voluntary Liquidation NGEI CHEONG: Creditors' Meeting Set for October 15 PLEXWOOD LIMITED: Members and Creditors to Meet on October 23 TOTAL PROPERTY: Members' and Creditors' Meeting Set for Oct. 23 WORLDWIDE TRANSPORT: Members and Creditors to Meet on Oct. 23 XINAO GAS: Moody's Downgrades Sr. Unsecured Bond Rating to Ba2 I N D I A ADHUNIK ALLOYS: Fitch Rates INR920MM Long-Term Loan 'BB+(ind)' LEHMAN BROTHERS: SK Bangur Eyes Buyback of Bank's West Coast Stake * INDIA: Banks May Weather Market Turmoil, S&P Says * INDIA: Study Reveals 1,200 Listed Companies Forged Results I N D O N E S I A PT PERTAMINA: To Invest US$500 Mil. in Oil and Gas Project in Cepu J A P A N NOMURA HOLDINGS: To Buy Lehman Brothers' Asia Pacific Franchise SHINSEI BANK: Sees 80% Drop in Full Year Profit on Lehman Exposure SHINSEI BANK: Acquires GE Consumer Finance for JPY580 Billion * JAPAN: S&P Cuts Rating on Various Synthetic CDO Transactions K O R E A HYUNDAI MOTOR: Union to Vote for New Tentative Wage Deal * KOREA: Government Aims to Give Financial Help to Smaller Firms N E W Z E A L A N D BRASS MAGAZINE: Proofs of Debt Due on September 30 HIGHLINE ROOFING: Commences Liquidation Proceedings LANDSCAPE CONCEPTS: Commences Liquidation Proceedings MT FYFFE: Liquidators Set September 30 as Claims Bar Date OHOKA MOUNTAIN: Shareholders Opt to Liquidate Business ORAKEI GROUP: Placed Under Liquidation PULSE EVENTS: Liquidators Set September 30 as Claims Bar Date SECA LTD: Proofs of Debt Due on September 30 TEPAKI GROUP: Commences Liquidation Proceedings * NEW ZEALAND: Central Bank Takes Actions to Alleviate Liquidity P H I L I P P I N E S LODESTAR INVESTMENT: Mulls Possible Investment in Abacus Coal LEHMAN BROTHERS: Metrobank Files Court Rehabilitation for 2 Units * PHILIPPINES: Asks Companies to Submit Plan to Address Deficiency * GOLDEN TOWER: PSE Lifts Trading Restriction S I N G A P O R E ASIAN PARTNERS: Creditors' Proofs of Debt Due on October 14 PEC TECHNOLOGY: Wind-Up Petition Hearing Set for October 17 PROJECTOR S.A.: Court to Hear Wind-Up Petition on October 3 SZU MING: Court to Hear Wind-Up Petition on October 3 X X X X X X X X * Fitch: Banks in Asia Achieved Good Levels of Profitability * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= ACCESS 31: License Cancelled, Winds-Up Business ----------------------------------------------- ACCESS 31's community television license has been cancelled, The Australian Communications and Media Authority said. The company ceased broadcasting on Aug. 6, 2008. "The loss of Perth's community television service is a disappointing outcome," said Chris Chapman, ACMA Chairman. "The decision to cancel the license was not taken lightly. "ACMA is charged with promoting the availability of a diverse range of television services throughout Australia, as well as ensuring that broadcasters meet all their statutory obligations. ACMA reached its decision after considerable deliberations and taking into account both these objectives," Mr. Chapman said. "ACMA will now move quickly to ensure the Perth community can once again have access to a community television service," he said. According to ACMA, a number of interested parties have contacted ACMA and/or the liquidator with a view to providing a community television service for Perth. ACMA will shortly invite applications to conduct a two year trial community television service for Perth. ACMA said community broadcasting licenses are subject to the condition that the licensee provides a service or services for community purposes. On Sept. 18, 2008, ACMA found that Channel 31 Educational Community Television Ltd, licensee of ACCESS 31, breached this license condition as it was no longer providing a service for the Perth community. ACCESS 31 ceased broadcasting at 5:00 p.m. on Wednesday, Aug. 6, 2008. A meeting of members of the licensee held on Sept. 1, 2008, voted to wind-up the company voluntarily and appointed Kim Holbrook as liquidator. Under the Broadcasting Services Act 1992 (the Act), ACMA may suspend the license, for a period up to three months, or cancel the license if the licensee breaches a condition of the license. ACMA decided to cancel ACCESS 31's license with effect from Sept. 18, 2008. ACCESS 31 is a licensed community television station broadcasting on Channel 31 Perth. ANT DEVELOPMENTS: Members and Creditors to Meet on September 30 --------------------------------------------------------------- Ant Developments Pty Limited will hold a meeting for its members and creditors at 10:00 a.m. on Sept. 30, 2008. During the meeting, the company's liquidator, P. Ngan, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: P. Ngan Ngan & Co. Level 5, 49 Market Street Sydney NSW 2000 AK SERVICES: Liquidator to Give Wind-Up Report on September 29 -------------------------------------------------------------- AK Services (SA) Pty Ltd will convene a meeting for its members and creditors at 10:00 a.m. on Sept. 29, 2008. During the meeting, the company's liquidator, Peter J. Lanthois, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Peter J. Lanthois KordaMentha Level 4, 70 Pirie Street Adelaide South Australia ARMSFURY PTY: Members Opt to Liquidate Business ----------------------------------------------- Armsfury Pty Ltd's members agreed on July 24, 2008, to voluntarily liquidate the company's business. Steven Nicols was appointed to facilitate the sale of its assets. The liquidator can be reached at: Steven Nicols Nicols + Brien Telephone: (02) 9299 2289 Website: www.bankrupt.com.au AUSTRALIAN MOWER: Joint Meeting Set for September 29 ---------------------------------------------------- Australian Mower Company (Sales) Pty Ltd will hold a meeting for its members and creditors at 9:30 a.m. on Sept. 29, 2008. During the meeting, the company's liquidators, Robyn Erskine and Peter Goodin, will provide the attendees with property disposal and winding-up reports. The liquidators can be reached at: Brooke Bird Insolvency Practitioners 471 Riversdale Road Hawthorn East VIC 3123 Telephone (03) 9882 6666 BEDDIA PTY: Liquidator to Present Wind-Up Report on September 29 ---------------------------------------------------------------- Beddia Pty Limited will hold a meeting for its members and creditors at 11:30 a.m. on Sept. 29, 2008. During the meeting, the company's liquidator, Ozem Kassem, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Ozem Kassem Cor Cordis Chartered Accountants Level 10, 76-80 Clarence Street Sydney CONSTRUCTIONS METROPOLIS: Joint Meeting Set for September 30 ------------------------------------------------------------ Constructions Metropolis Pty Limited will hold a meeting for its members and creditors at 10:15 a.m. on Sept. 30, 2008. During the meeting, the company's liquidator, P. Ngan, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: P. Ngan Ngan & Co. Level 5, 49 Market Street Sydney NSW 2000 COVENANT TRUSTEE: Receives Purchase Offer, Puts Business for Sale ----------------------------------------------------------------- Fiona Robertson of The National Business Review reports that Covenant Trustee Company Limited is up for sale. According to the report, Covenant Trustee director Graeme Miller said he decided to open up the bidding after the company was approached by an interested buyer. Mr. Miller said his age made sale a "sensible" option to explore but he has not yet committed to selling. The Business Review relates that Covenant has brought in advisers to take expressions of interest from potential buyers, but the process is not yet at a due diligence stage. Mr. Miller owns 80 per cent of the company with two other managers, Stewart Lockhart and Peter Orpin owning 15 per cent and 5 per cent, respectively, the report notes. About Covenant Trustee Covenant Trustee Company Limited -- http://www.covenant.co.nz/-- acts as trustee for secured and unsecured trust deeds, convertible notes deeds and bond issues. The company also act as statutory supervisor for a number of property proportionate ownership schemes, forestry and film partnerships, and other forms of participatory securities, and as trustee of unit trusts. It provides statutory supervision services to the retirement village industry and also the trustee for a number of debenture issues for finance companies in New Zealand. DELUXE PLUMBING: Members and Creditors to Meet on September 29 ------------------------------------------------------------ Deluxe Plumbing Services Pty Limited will hold a meeting for its members and creditors at 11:15 a.m. on Sept. 29, 2008. During the meeting, the company's liquidator, Ozem Kassem, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Ozem Kassem Cor Cordis Chartered Accountants Level 10, 76-80 Clarence Street Sydney ENVIRONINVEST LTD: Appoints Administrator, Placed in Receivership ----------------------------------------------------------------- The directors of Environinvest Ltd appointed James Downey as administrator of the company on Sept. 19, 2008. Mr. Downey is the principal of J P Downey & Co, Chartered Accountants. On Sept. 22, 2008, Commonwealth Bank of Australia appointed Craig Shepard and Mark Mentha of KordaMentha as joint and several receivers and managers of Environinvest. According to KordaMentha, in the past few months, Environinvest has been negotiating a sale of the land upon which three schemes operate, together with the trees growing on the land. The schemes are: -- Primary Yield Eucalypt Project ARSN 093 575 270; -- Primary Yield Eucalypt Project No. 7 ARSN 108 736 705; and -- Primary Yield Eucalypt Project No. 9 ARSN 117 062 601. Environinvest has stated that due to extenuating circumstances (in particular, drought conditions) it is necessary to sell the trees before they reach maturity. The receivers said they will likely continue the sale process. The receivers anticipate that finalising any sale process and winding up of these three schemes will take at least two months. For the other schemes, the receiver will undertake an assessment as to whether the schemes can be continued by a new responsible entity. If the purpose of a scheme has been accomplished or can no longer be accomplished then scheme assets, subject to liabilities, may be realised as a result of a sale or winding up. About Environinvest Ltd Headquartered in Melbourne, Victoria in Australia, Environinvest Limited -- http://www.environinvest.com.au/-- which trades as Primary Yield, holds a financial services licence to run several forestry and agricultural investment schemes. Since its inception in 1997, the company is currently responsible under ownership, lease, and agistment for 370,000 acres (148,857 hectares) of agricultural land in Victoria, Tasmania, South Australia, New South Wales, and Queensland. The company also offers Eucalyptus industry investment opportunities, cattle industry investment opportunities and blue gum investment information for Australian national markets and international clients. As at June 30, 2004, Environinvest and its subsidiaries had net assets of approximately AU$36 million. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 21, 2008, the Herald Sun said David Nairn of HLB Mann Judd expressed substantial doubt about Environinvest Ltd's ability to continue as a going concern pointing to the company's program to sell its forestry assets. According to the report, the auditor is concerned that "without such a program current liabilities would exceed current assets." The auditor's statement was made based on the company's 2007 financial accounts filed with the Australian Securities & Investments Commission on May 22. GBS GOLD: Appoints Administrators to Australian Subsidiaries ------------------------------------------------------------ GBS Gold International Inc. said that its indirect wholly-owned subsidiary, GBS Gold Australia Pty Ltd, has appointed Andrew Saker, Darren Weaver and Martin Jones of Ferrier Hodgson as joint and several voluntary administrators of GBS Australia and its Australian subsidiary entities. The appointment of the administrators is required under Australian law following the recent degradation of GBS Australia's financial position and places control of the Australian subsidiaries in the hands of the administrators. Claims of creditors are delayed with the principal aim of allowing the Australian subsidiaries to be restructured and recapitalized with a view to being able to continue their business. The appointment has arisen due to the company being unable within the time required to secure appropriate financing for recapitalizing its Australian subsidiaries. The appointment constitutes an event of default under the company's debt financing arrangements, including the existing CDN$46 million secured promissory note facility and secured Australian banking facilities. The security arrangements give the secured parties certain rights and decisions with respect to the company's assets. The amounts due under the promissory note facility have become repayable and discussions have commenced with the noteholders. The administrators are making immediate contact with the company's noteholders, banks and other creditors and, in consultation with the Board and management of GBS Gold, will review the company's operations and investigate production, restructuring and recapitalization plans. The Administrators has set out the process in Australia and the approach for seeking and agreeing to potential restructuring outcomes. If the Australian subsidiaries cannot ultimately be restructured or continue as a going concern, they may then be subject to liquidation proceedings. The appointment of the administrators is required as a result of production issues and weaker operating cashflows leading to a reduction in the company's cash resources. In particular, GBS Gold's Australian subsidiaries have recently suffered from lower production and cashflow losses as a result of the following: -- A stope failure experienced in the Brocks Creek underground mine in June and recent experiences within lower levels of this orebody. Following the stope failure, development of the underground workings continued into lower levels of this mine where it is now evident that ore tonnes and gold grades in these mining levels are below those experienced in the higher levels of the mine. As a result, the economics of the mine have deteriorated and additional drilling is required to confirm the geological interpretation that ore tonnes and grades will improve towards previous levels as mining progresses deeper. -- Mining of the Chinese South Extension open pit mine has recently required, and is expected to continue to require, removal of greater quantities of waste rock material than originally anticipated, resulting in reduced ore quantities available for the Union Reefs plant. Ore from other available open pit sources is not expected to cover this shortfall. -- In the course of ramping up production to in excess of 200,000 tonnes per month through the Union Reefs plant, the company incurred additional production and capital costs while experiencing significant cost increases in Australia, particularly in fuel, processing consumables and labour. -- Production delays and lower ore grades than planned at the Tom's Gully operation have led to increased start-up costs. Based on recent mining and processing activities, ore grades from the underground mine in the short term are expected to be less than budgeted until the higher grade veins of the orebody are accessed. -- The company's inability to secure appropriate financing in the current market conditions. The company is currently working closely with the administrators to assess the effect upon the future business and direction of the company and its Australian subsidiaries, and will provide further advice to shareholders in due course. Union Reefs Operations Update GBS Gold said that the administrators of the company's Australian subsidiaries have informed the company that they will be ceasing mining operations at the Union Reefs Operations Centre effective from Sept. 30, 2008 and wind down milling operations and eventually place the Union Reefs plant on care and maintenance. As a result, GBS Gold said it will cease gold production pending the outcome of the administration process. The value of the company's common shares is uncertain and will be dependent on the outcome of the administration process and any potential recapitalization of the company. About GBS Gold Based in Vancouver, BC, Canada, GBS Gold International Inc. (TSE:GBS)-- http://www.gbsgold.ca/-- is a gold producer with 2.4 million ounces (Moz) of measured and indicated resources, and 1.6Moz of inferred resources of gold at its Union Reefs operations centre located in the Northern Territory of Australia (Union Reefs Operations Centre). The Company produces gold at its 2.5 million tons per annum (Mtpa) Union Reefs processing plant (the Union Reefs Plant). During the year ended December 31, 2007, GBS Gold produced 91,186 ounces of gold, of which total production from the commencement of commercial production on April 1, 2007, was 80,092 ounces of gold. During 2007, ore was sourced from the Rising Tide and Fountain Head open pits, and from the high-grade Brocks Creek underground mine and nearby historic stockpiles. On July 25, 2007, the company acquired the Tom's Gully mine assets from Australian company Renison Consolidated Mines NL. HAMPERS HOLDINGS: Members' Final Meeting Set for September 29 ------------------------------------------------------------- Brad hutchesson, Hampers Holdings Pty Limited's appointed estate liquidator, will meet with the company's members on Sept. 29, 2008, at 4:00 p.m. to provide them with property disposal and winding-up reports. The liquidator can be reached at: Brad Hutchesson WHK Horwath Level 32, 80 Collins Street Melbourne VIC 3000 KANE'S CRANES: Members Opt to Liquidate Business ------------------------------------------------ Kane's Cranes Y Pty Limited's members agreed on July 24, 2008, to voluntarily liquidate the company's business. Steven Nicols was appointed to facilitate the sale of its assets. The liquidator can be reached at: Steven Nicols Nicols + Brien Telephone: (02) 9299 2289 Website: www.bankrupt.com.au NATURAL FUEL: Appoints Administrators to 50% Owned Joint Venture ---------------------------------------------------------------- Natural Fuels Australia Limited, a 50-50 joint venture between Natural Fuel Limited and Babcock and Brown Environmental Investments Limited, has appointed Peter Walker and Steven Sherman of Ferrier Hodgson as joint and several voluntary administrators under Part 5.3A of the Corporations Act 2001. Natural Fuels Australia and its subsidiary Natural Fuel Darwin Pty LTD own and operate the biodiesel production facility in Darwin. The directors of Natural Fuels Australia resolved to appoint administrators on Friday Sept. 19, 2008, following the withdrawal of funding support by Babcock and Brown Environmental Investments Limited, with the effect that the Sept. 30, 2008, repayment date for Natural Fuels Australia's secured loan to that shareholder would not be extended. Administrators have not been appointed to Natural Fuel Limited. The directors believe that Natural Fuel Limited's financial position remains sound and that the appointment of administrators to Natural Fuels Australia and Natural Fuel Darwin will not adversely affect it. Following an assessment of the recoverability of Natural Fuel Limited's secured loan to Natural Fuels Australia, Natural Fuel Limited raised a provision for impairment of AU$30.3 million in its Dec. 31, 2007, financial statements. In Natural Fuel Limited's preliminary final report as at June 30, 2008, that loan was valued at AU$13.8 million. Natural Fuel Limited considers it is likely that a further provision for impairment of its loan to Natural Fuels Australia will now be required and will determine the appropriate quantum of this as soon as possible. The directors of Natural Fuel Limited are disappointed with this development. They note, however, that Natural Fuel Limited will cease providing funding for Natural Fuels Australia, allowing it to focus on its wholly owned biodiesel production facility in Singapore. This is expected to have a positive impact on cashflow and earnings in the current year. About Babcock & Brown Environmental Babcock & Brown Environmental Investments Ltd. (BEI) is engaged in investment and management of businesses in the renewables sector. The company's portfolio consists of four businesses: Denco LLC (Denco), which is an ethanol producer in the United States; Natural Fuel Australia Limited, which has built a bio-diesel plant in Darwin, Australia; Southern Oil Refineries (SOR) that operates a 30 million liter per annum used oil recovery and refining operation at its refinery base at Wagg Wagga, New South Wales, and EarthPower Technologies Sydney, which operates an anaerobic digester facility in Camellia, Sydney, New South Wales. In August 2007, the company completed the sale of EarthPower Technologies Sydney Pty Limited to Veolia Environmental Services (Australia) Pty Limited and Transpacific Industries Group Ltd. As of April 20, 2008, Babcock & Brown Limited's subsidiary, Babcock & Brown Environmental Investments Holdings Pty Ltd and its associates, had acquired a 97.88% interest in BEI. About Natural Fuel Natural Fuel Limited (ASX:NFL)-- http://www.naturalfuel.com/ -- is engaged in the construction and commissioning of a biodiesel plant in Darwin, Australia with its 50% joint venture partner and the construction of a biodiesel plant in Singapore. It is engaged in the development of biodiesel plants with the plan to produce, market and distribute bio-diesel products in the future. It is organized on a global basis through three geographical segments: Australia, Singapore and United States of America. its subsidiaries are Natural Fuel Pte Ltd and Natural Fuel & Energy Inc. NOMURA HOLDINGS: To Buy Lehman Brothers' Unit in Australia ---------------------------------------------------------- Nomura Holdings Inc. has agreed to acquire Lehman Brothers' franchise in the Asia Pacific region including Japan and Australia. The transaction is subject to a number of conditions. As reported by the Troubled Company Reporter on September 16, 2008, Lehman Brothers Holdings Inc. filed a petition under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York early morning on September 15. The report said that none of the broker-dealer subsidiaries or other subsidiaries of the were included in the Chapter 11 filing and all of the broker-dealers will continue to operate. The deal includes all of Lehman Brothers' franchises and approximately 3,000 employees in multiple locations in the Asia- Pacific region. Lehman has been a strong player in the investment banking field, particularly M&A, execution services, non-cash business including derivatives, electronic trading and prime brokerage. By combining two strong client franchises, the partnership will enable Nomura to strengthen its wholesale business and to further realize its strategy of delivering Asia to the world. Under the terms of the transaction all employees in Asia Pacific will be offered employment with Nomura. The deal does not include any trading assets or trading liabilities. Kenichi Watanabe, Nomura's President and CEO, said: "This is a transformational deal that allows us to bring together the strengths of Nomura and Lehman Brothers to further deliver value to our clients. It will significantly extend our reach in Asia. We see immediate strategic benefits, delivering the scale and scope to realize our vision to be a world-class investment bank. "The businesses we are acquiring are hugely successful with excellent management and staff. This is a once in a generation opportunity and we are delighted to be able to partner with Lehman Brothers' talented people to create one of the biggest independent global financial institutions that provides world-class investment banking services to clients across the globe. Our ability to capitalize on this opportunity in spite of such volatile markets reflects our financial strength and demonstrates how well we have managed the credit crisis. This deal is validation for our strategy," said Mr. Watanabe. Jesse Bhattal, CEO of Lehman Brothers Asia, added: "To partner with such a reputable firm as Nomura is truly a remarkable opportunity for both firms, as it creates a completely complementary platform across an expanded range of products and services. We are honored to work with Nomura in building a platform which we believe offers tremendous potential." About Nomura Holdings Nomura Holdings, Inc. -- http://www.nomura.com/ -- is a securities and investment banking firm in Japan and has worldwide operations. Nomura is a holding company. The services it provides include trading, underwriting, and offering securities, asset management services, and others. As of March 31, 2008, it operated offices in about 30 countries and regions, including Japan, the United States, the United Kingdom, Singapore and Hong Kong through its subsidiaries. The company's customers include individuals, corporations, financial institutions, governments and governmental agencies. Nomura operates in five business divisions: domestic retail, global markets, global investment banking, global merchant banking and asset management. In February, 2007, Nomura acquired Instinet Incorporated. * * * Nomura Holdings still carries Fitch Ratings' 'C' individual rating. On Aug. 1, 2008, the Troubled Company Reporter - Asia pacific , citing the Wall Street Journal, reported that Nomura Holdings posted a JPY76.6 billion (US$712.8 million) net loss for its fiscal first quarter, from a JPY75.9 billion net profit a year earlier. The reported loss, the report said, came after write- downs of risky debt products, and a Japanese bank's expectation that difficult market conditions will continue. PAN PHARMACEUTICALS: Fined AU$10 Million for Falsification ---------------------------------------------------------- Pan Pharmaceuticals Limited has been fined AU$10 million for 51 offenses after pleading guilty to using false certificates and altering the ingredients of products it exported to Vietnam, The Age reports. According to the report, the NSW District Court said employees of Pan Pharmaceuticals knowingly used false Australian certification and counterfeited documents in order to get the drugs past Vietnamese authorities. Judge John Nield said the criminal offenses were serious enough to warrant prison terms had the offender been a person, not a company. "One serious consequence of the Pan Pharmaceuticals case is that it undermined Australia's standing in the world as an exporter of safe therapeutic goods," the report cites Judge Nield as saying. The Age relates that Mr. James Selim, former Chief Executive Officer and Managing Director of Pan Pharmaceuticals, said he felt vindicated by the court's decision. Mr. Selim said he would push ahead with preparations for a AU$200 million class action against the TGA over the collapse of the company in 2003. According to the Age, Andrew Thorpe, Mr. Selim's solicitor, said there was a "high degree of interest" from former customers and creditors of Pan Pharmaceuticals in pursuing a class action. There would most probably be hundreds of parties involved and a claim would be made on behalf of companies which lost money as a direct result of the Therapeutic Goods Administration's handling of the Pan matter, Mr. Thorpe said. About Pan Pharmaceuticals On May 22, 2003, Anthony Gregory McGrath & Christopher John Honey of McGrathNicol+Partners were appointed administrators for Pan Pharmaceuticals Limited and its subsidiaries: 1. Pan Pharmaceuticals Services Pty Limited; 2. Pan Pharmaceuticals Exports Pty Limited; 3. Pan Laboratories (Australia) Pty Limited; and 4. Pan Pharmaceuticals Technologies Pty Limited On Sept. 23, 2003, the creditors of Pan rejected a proposal for a Deed of Company Arrangement submitted by Fred Bart and Jim Selim. Subsequently on the same day, the creditors of Pan and Laboratories resolved that these two companies be wound-up. On Oct. 21, 2003, the creditors of Services, Exports, and Technologies resolved to place these three companies into liquidation. Sale of business Since their appointment, the Administrators and the Liquidators have overseen a major upgrade of Pan's facilities, processes, and documentation. On Oct. 1, 2003, the Therapeutic Goods Administration advised that it was satisfied that Pan was compliant with the Australian Code of GMP for Medicinal Products with respect to the manufacture of soft gelatine capsules that are required to be listed in the Australian Register of Therapeutic Goods, and that reinstatement of the company's soft- gel license could be recommended. The TGA issued the soft-gel license on Nov. 4, 2003. After the reinstatement of the soft-gel license, the Liquidators recommenced the sale process for the Pan business. The Liquidators offered the assets as a going concern and accepted an offer of AU$20 million. Settlement occurred on Dec. 15, 2003. The business and assets of Pan have been sold to Sphere Healthcare Pty Ltd. THILKA PTY: Liquidator to Give Wind-Up Report on September 29 ------------------------------------------------------------- Thilka Pty Limited will hold a meeting for its members and creditors at 11:45 a.m. on Sept. 29, 2008. During the meeting, the company's liquidator, Ozem Kassem, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Ozem Kassem Cor Cordis Chartered Accountants Level 10, 76-80 Clarence Street Sydney ULTIMATE CONCRETING: Joint Meeting Slated for September 29 ---------------------------------------------------------- Ultimate Concreting and Landscaping Pty Ltd will hold a meeting for its members and creditors at 11:00 a.m. on Sept. 29, 2008. During the meeting, the company's liquidator, Bruno A. Secatore, will provide the attendees with property disposal and winding-up reports. The liquidator can be reached at: Bruno A. Secatore Cor Cordis Chartered Accountants 406 Collins Street Melbourne VIC 3000 WESTAFF INC: Has Until March 9 to Comply with Nasdaq's Price Rule ----------------------------------------------------------------- Westaff Inc. received a letter from The Nasdaq Stock Market indicating that, for the last 30 consecutive business days, the bid price of Westaff's common stock had closed below the minimum US$1.00 per share requirement for continued inclusion under Nasdaq Marketplace Rule 4450(a)(5). As Sept. 16, 2008, Westaff's common stock has not been delisted and continues to be listed on the Nasdaq Global Market. In accordance with Nasdaq Marketplace Rule 4450(e)(2), Westaff has 180 calendar days from the date of the Nasdaq letter, or until March 9, 2009, for the bid price of its common stock to close at US$1.00 per share or more for a minimum of 10 consecutive business days to regain compliance. In the event that Westaff does not regain compliance by March 9, 2009, Nasdaq will provide notice to Westaff that its common stock will be delisted. At that time, Westaff would be permitted to appeal Nasdaq's determination to delist Westaff's common stock to a Nasdaq Listing Qualifications Panel. Alternatively, Nasdaq Marketplace Rule 4310(c) may permit, upon approval by Nasdaq, Westaff to transfer its common stock to the Nasdaq Capital Market if Westaff's common stock satisfies all criteria, other than compliance with the minimum bid price rule, for initial inclusion on such market. In the event of such a transfer, the Nasdaq Marketplace Rules provide that Westaff would be afforded an additional 180 calendar days to comply with the minimum closing bid price rule while listed on the Nasdaq Capital Market. About Westaff Inc. Based in Walnut Creek, California, Westaff Inc. (Nasdaq: WSTF) -- http://www.westaff.com/-- provides staffing services and employment opportunities for businesses in global markets. Westaff annually employs in excess of 125,000 people and services more than 20,000 client accounts from more than 177 offices located throughout the United States, Australia and New Zealand. Forbearance Agreement As reported in the Troubled Company Reporter on Sept 4, 2008, Westaff Inc. entered into a Forbearance Agreement with U.S. Bank National Association and Wells Fargo Bank, National Association, effective Aug. 27, 2008. The agreement relates to bank covenant defaults which occurred on April 19, 2008, under the Financing Agreement dated Feb. 14, 2008. Under the terms of this Forbearance Agreement, the banks have agreed to forebear from exercising any remedies that they may have against the company as a result of such events of default through Sept. 30, 2008. * AUSTRAIA: ASIC's Clarifies Prohibition on Short Selling --------------------------------------------------------- The Australian Securities and Investments Commission (ASIC) has issued further clarification to market participants regarding the prohibition on short-selling to ensure that fair and ordinary markets continue. Prohibition ASIC has prohibited naked and covered short selling of all securities, managed investment products and stapled securities quoted on licensed markets in Australia, subject to certain exceptions. This prohibition came into effect on 19 and 22 September 2008. Permitted Exceptions ASIC has reviewed the operation of the market since its announcements and had opportunity to consult with ASX and industry. This document summarises decisions of ASIC to exempt some market operations from the short selling prohibition, in line with overseas developments. The prohibition on covered short sales does not apply to the following: * Hedging for existing positions ASIC has provided relief for hedging of pre-22 September positions of market makers arising from their client business, to the effect that the prohibitions on covered short sales will not apply to hedging a position that was taken by an entity prior to Sept. 22, 2008, as part of its business of dealing as principal in equities, options or derivatives (whether OTC or exchange-traded) to fulfil orders received from clients or to respond to a client's request to trade, in each case before that date. * Dual listed entities ASIC has provided relief to enable persons engaging in arbitrage transactions in relation to the securities of dual listed entities to make covered short sales of the relevant securities in Australia. * All exchange-traded options ASIC has provided relief for sales resulting from the exercise of exchange-traded options issued before or after Sept. 22, 2008. * Index arbitrage transactions Covered short sales as part of an index arbitrage are not currently permitted under ASIC's class orders. However, ASIC considers index arbitrage transactions that are unlikely to be a mechanism for market abuse should be allowed. ASIC has provided relief that will apply to index arbitrage. * Market makers Certain covered short sales made by market makers are exempt from the prohibition relating to covered short sales. ASIC has determined to widen the relief for market makers in line with overseas decisions. ASIC will provide relief for transactions that satisfy all of the following requirements: a) the market maker must be an entity that makes a market as set out in section 766D of the Corporations Act 2001; b) the market maker must hold an Australian financial services licence relating to making a market or relies upon an exemption so it does not need an Australian financial services licence; c) the covered short sale is a bona fide transaction to manage the entity's risk arising from its market making activities; and d) the market maker must not enter into a short sale in respect of a product if it knows the client's transaction for which it is making the market will result in the client or counterparty establishing or increasing an economic net short position in respect of a product covered by the ASIC Class Orders. Therefore the market makers exemption will cover some activities such as: a) client facilitation ie. selling stock to a client thereby "filling" the client demand at a price which is certain, prior to the broker covering the position in the market (at the broker's own risk); b) hedging certain OTC equity swaps; c) guaranteeing VWAP to a client, where the broker will short throughout the day and then cross with the client at the end of day at guaranteed VWAP price; and d) enabling market making to hedge CFD products where the client holds a long position. * Covered short sales to manage risk associated with underwriting of dividend reinvestment plans, share purchase plans and convertible bonds and hybrids ASIC said it will grant relief where covered short sales occur to manage risk of underwriting these corporate transactions at the request of the relevant entity. Disclosure Where covered short selling is permitted (in limited circumstances) the short selling transaction needs to be disclosed in accordance with ASIC Class Order [CO 08/751]. These reporting requirements are equivalent to end of trading day net short sale position disclosure under the ASX Market Rules. The reporting requirements came into effect on Sept. 19, 2008, and apply to trading from Sept. 22, 2008. ========= C H I N A ========= CHINA MERCHANTS: Inks Deal to Buy 60.5% of Trust Investment ----------------------------------------------------------- China Merchants Bank has signed an agreement to buy 60.5% of Trust Investment Corp of Tibet from the region's government, aimed at diversifying its sources of revenue, Langi Chiang of Reuters reports. According to the report, net fee and commission income, including commissions from trust operations, rose 53.7% to CNY4.1 billion (US$600 million) in the first half of 2008 and accounted for 14% of the bank's operating net income. China Merchants Bank -- http://www.cmbchina.com/-- is the second largest bank among China's 12 nationwide shareholding commercial banks. It was established in 1987 and listed on the Shanghai Stock Exchange in 2002. The Ministry of Communications-owned China Merchants Group is the bank's main shareholder with a 26 percent stake (through various companies). The bank had 410 banking outlets nationwide and 17,829 employees at end-2004. * * * China Merchants Bank continues to carry Moody's "D+" bank financial strength rating. The outlook is stable. On August 3, 2006, the Troubled Company Reporter-Asia Pacific reported that Fitch Ratings upgraded its Individual rating on China Merchants Bank to 'D' from 'D/E'. At the same time, the bank's Support rating was affirmed at '3'. SHANDONG ZHOUYUAN: Files Amended 2007 Annual Report --------------------------------------------------- Shandong Zhouyuan Seed and Nursery Co. Ltd., filed Sept. 8, 2008, an amended annual report for the year ended Dec. 31, 2007, with the U.S. Securities and Exchange Commission. The annual report was originally filed on April 15, 2008. The company's management evaluated the effectiveness of the design and operation of its disclosure controls and procedures. Based upon the evaluation, its chief executive officer and its chief financial officer have concluded that for the year ended Dec. 31, 2007, the company's disclosure controls and procedures were effective. Management also revised the Consolidated Financial Statements to reflect the business combination between Infolink Pacific Limited and Zhouyuan as reorganization of entities under common control. A copy of the consent of the company's auditors, Kempisty & Company CPAs PC, was filed with the SEC together with the amended documents. Shandong Zhouyuan posted US$843,695 in net losses on US$702,602 in net revenues for the year ended Dec. 31, 2007, compared with US$347,706 in net losses on US$424,709 in net revenues for the year ended Dec. 31, 2006. At Dec. 31, 2007, Shandong Zhouyuan had US$3,495,009 in total assets, US$3,083,171 in total liabilities, US$248,020 in minority interest, and US$163,818 in stockholders' equity. The company's balance sheet at Dec. 31, 2007, showed strained liquidity with US$343,532 in total current assets available to pay US$3,083,171 in total current liabilities. A full-text copy of the company's amended 2007 annual report is available for free at http://ResearchArchives.com/t/s?322a Going Concern Doubt Kempisty & Company CPAs PC in New York expressed substantial doubt about Shandong Zhouyuan Seed & Nursery Co. Ltd.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm said that the company had net losses of US$813,341 and US$322,586 for the years ended Dec. 31, 2007, and 2006, respectively, and an accumulated deficit of US$2,636,401 at Dec. 31, 2007. The auditing firm added that the company was in default on its bank loans as of Dec. 31, 2007, totaling US$1,764,834, as of Dec. 31, 2007. Management said the recoverability of a major portion of the company's recorded asset is dependent upon its continued operations, which in turn is dependent upon the its ability to raise additional capital, obtain financing and succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the company be unable to continue as a going concern. The company is actively pursuing additional funding and a potential merger or acquisition candidate and strategic partners, which would enhance stockholders' investment. About Shandong Zhouyuan Shandong Zhouyuan Seed and Nursery Co. Ltd. (OTC BB: SZSN) -- http://www.chinaseedcorp.com/-- was originally incorporated in the State of North Carolina. The company, through its consolidated subsidiary, Shandong Zhouyuan Seed and Nursery Co. Ltd., a company formed under the laws of the People's Republic of China, is engaged in the business of developing, distributing and selling agricultural seeds in China. The company's executive offices are located at Laizhou, Shandong Province, People's Republic of China. SHANGHAI ZENDAI: Fitch Affirms 'B+' LT Issuer Default Rating ------------------------------------------------------------ Fitch Ratings has affirmed China-based Shanghai Zendai Property Limited's Long-term foreign currency Issuer Default Rating at 'B+'. The Outlook remains Stable. Fitch has also affirmed the issue rating of 'B+' and the recovery rating of 'RR4' on the US$150m senior notes due 2012. SZP's ratings continue to be constrained by its operating scale and level of diversification. Currently there are 14 projects under development or for future development, which is a relatively small-sized portfolio, compared with its peers rated at the 'BB' category. In 2007 and H108, its several projects in Shanghai - in particular, Mandarin Palace, Zendai Cube Tower and Wudaokou Financial Centre - remained the key sources of its profit and cash flow. However, Fitch observes that SZP has acquired some new integrated or commercial projects in its non-traditional markets since 2007. The acquisitions reflect the company's continuous efforts to diversify its portfolio outside its origins, Shanghai. "The purchase of these projects is consistent with the company's strategy to strengthen its position as an integrated developer and help alleviate the variability in terms of sales and cash flow during the downturn in the residential market," commented Matthew Kong, Associate Director in Fitch's Asia Corporates team. The ratings take into account the vulnerability of SZP's sales to regulatory and market changes. Fitch notes that SZP's residential property sales in Jilin and Changchun have fallen due to weak market sentiment affected by tightening mortgages and soaring property prices, which will put uncertainty over its FY08 sales. However, as the contracted sales from commercial properties constituted 68% of total in H108, SZP, as an integrated developer, should be less affected by the residential market downturn than those residential-focused developers. Fitch also notes the impact of corporate governance issues on SZP's credit quality. In particular, although the ownership restructuring made by SZP and Shanghai Zendai Investment Development Co., Ltd in the Himalaya project - likely to remain a net cash drain over the coming few years - has resulted in the project not being consolidated any more in SZP's accounts, Fitch considers that it remains possible that financial resources will be transferred out of SZP if the Himalaya project were to require significant capital injection; given that both SZP and SZI are being controlled by the same ultimate shareholder. SZP's ratings are supported by its sound financial profile. While the potential price volatility in the residential market may exert pressure on profit margins, the agency does not view profitability as a major concern, as more multi-use and commercial properties are coming on stream and these usually command high margins and have solid demand. At the same time, the company's leverage and coverage ratios remain comfortable; its FFO adjusted net leverage and FFO net interest coverage read 1.2x and 5.2x at end-07. SZP's liquidity is also viewed as adequate as cash and equivalents was HK$1.2 billion at end-H108 and further enhanced by an estimated HK$800 million-900 million in contracted sales in H208, which is more than sufficient to cover its outstanding short-term debt of HK$243.6 million at end-H108 and investment needs of approximately HK$950 million in H208. SZP is a mainland China-based integrated property developer principally engaged in the property development in some selected cities in the Yangtze River Delta and northeast China, now expanding into the Bohai Bay Rim, Inner Mongolia and Hainan. In its recently released interim results, SZP posted a turnover of HKD935m, up 42% year on year, and an operating profit of HK$426 million in H108. Giant Glory Limited, a private company wholly- owned by SZP's Chairman, Dai Zhikang, is the controlling shareholder with a 59% stake in SZP. SINOBIOMED INC: Names Lionel Choong as Chief Financial Officer -------------------------------------------------------------- Sinobiomed Inc. has appointed Lionel Choong as Chief Financial Officer beginning Sept. 1, 2008. The current CFO of Sinobiomed, Mr. Asher Zwebner, has resigned effective Aug. 31, 2008. As CFO, Mr. Choong will oversee the Company's various financial functions, including finance and accounting, financial planning and analysis, regulatory and risk management, and facilities and strategic growth. He will also be involved with other corporate activities and serve as a strategic partner with the CEO as the Company develops its unique strategies and tactics for long-term impact. Mr. Choong, 46, most recently led the corporate finance department of Kennic L.H. Lui & Co, a Certified Public Accounting firm in Hong Kong. A former partner with Deloitte Touche Tohmatsu in Hong Kong and former CFO of Byford International Ltd., a company listed on the Hong Kong Stock Exchange, he has more than 20 years of experience in corporate finance, business development, IPO and M&A, and financial management and reporting in a variety of industries in Hong Kong, China and overseas. A Chartered Accountant with an Institute of Chartered Accountants in England and Wales Advanced Diploma in Corporate Finance, Mr. Choong has an MBA from J. L. Kellogg School of Management at Northwestern University. "I am looking forward to helping Sinobiomed achieve its full potential as a public company," said Mr. Choong. "The Company team is first rate and there is tremendous scope for growth both in Asia and around the world. It is my intention to work with the team to effectively implement strategy and further strengthen the Company's finance team, transparency and corporate governance". "With the current new funding from Accelera Ventures, and anticipated intermediate-term funding to prepare for the next phase of growth, it is imperative to have a solid finance team," Banyun Yang, Sinobiomed CEO, commented. "Lionel's deep experience will create the cornerstone for that." Sinobiomed extends its sincere thanks to Mr. Zwebner for his services to the Company as Chief Financial Officer and wishes him every success as he pursues other interests. About Sinobiomed Inc. Sinobiomed Inc. formerly CDoor Corp. (OTC BB: SOBM) -- http://www.sinobiomed.com/-- was incorporated in the State of Delaware. The company is a leading Chinese developer of genetically engineered recombinant protein drugs and vaccines. Based in Shanghai, Sinobiomed currently has 10 products approved or in development: three on the market, four in clinical trials and three in research and development. The company's products respond to a wide range of diseases and conditions, including: malaria, hepatitis, surgical bleeding, cancer, rheumatoid arthritis, diabetic ulcers and burns, and blood cell regeneration. Going Concern Doubt Schumacher & Associates Inc., in Denver, expressed substantial doubt about Sinobiomed Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm reported that the company has experienced losses since commencement of operations and has negative working capital and a stockholders' deficit. The company is in the process of researching, developing, testing and evaluating proposed new pharmaceutical products and has not yet determined whether these products are technically or economically feasible. Management's plan is to actively search for new sources of capital, including government and non- government grants toward research projects and new equity investment. Sinobiomed Inc.'s consolidated balance sheet at June 30, 2008, showed US$8.6 million in total assets, including US$1.9 million in current assets, and US$16.1 million in liabilities all due within the next 12 months, resulting in a US$7.4 million stockholders' deficit. The company reported a net loss of US$1,2 million on sales of US$359,228, for the second quarter ended June 30, 2008. * CHINA: Fitch Says Despite Profits, Banks Shows Emerging Strains ----------------------------------------------------------------- Fitch Ratings said that despite the strong profit figures posted by Chinese banks in H108, there are a number of strains emerging in the banking sector that point to an increasingly difficult road ahead, including rising borrower stress, escalating credit leakage, and tightening excess liquidity. In a special report on Chinese banks entitled "Chinese Banks: Signs of Strain Emerging, Despite Strong H108", the agency highlights that weakening global demand, rising inflation, and intensifying domestic economic pressures are taking a toll on borrowers and placing growing strains on banks. "Pressures within the banking system are mounting, and this carries important consequences for Chinese banks' future earnings, asset quality, and capital," said Charlene Chu, Senior Director with Fitch's Financial Institutions team in Beijing. The agency notes that despite a fall in the aggregate NPL ratio for China's listed banks at end-June 2008, there are early signs of a rise in loan delinquencies. The amount of loans recorded as overdue from one day to one year increased almost across-the-board for listed banks in H108, while at the same time the assessment rates for the amount of loan loss reserves that should be set aside for performing loans also rose. "Certain data is starting to indicate that the benign credit environment of the last few years may be turning, although it remains too early to draw solid conclusions," said Chu. The agency highlights that recent earnings growth has been primarily driven by two new noteworthy trends evolving out of the tight credit environment, including higher loan pricing and the rapid rise in the sale and re-packaging of loans into wealth management products that are then re-sold to investors. Fitch notes that although sales of these products have helped banks' fee income accelerate at a time when mutual fund sales have plummeted, this activity should be viewed with a considerable amount of caution due to extremely poor transparency and disclosure, and uncertainty about the amount of residual exposure banks retain on the underlying loans that have been sold. "If nothing else, recent international experience underscores the necessity of clear and transparent reporting by banks, and the hazards of permitting hidden risks to grow," added Chu. =============== H O N G K O N G =============== CITILINK INVESTMENT: Members and Creditors to Meet on October 23 ---------------------------------------------------------------- The members and creditors of Citilink Investment Limited will meet on October 23, 2008, at 10:30 a.m. and 10:45 a.m., respectively, at 1401, Level 14 of Tower 1, Admiralty Centre, in 18 Harcourt Raod, Hong Kong. At the meeting, Cosimo Borrelli, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CYBERNET: Members' Final Meeting Set for October 20 --------------------------------------------------- The members of Cybernet (Asia Pacific) Limited will hold their final meeting on October 20, 2008, at 10:00 a.m., at the office of John Lees & Associates Limited, 1904 Hong Kong Club Building, 3A Chater Road, in Central, Hong Kong.. At the meeting, John Robert Lees, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. FUEL AND MARINE: Placed Under Voluntary Liquidation --------------------------------------------------- Fuel and Marine Marketing Hong Kong Limited commenced liquidation proceedings on September 11, 2008. Leung Fung Yee Alice was appointed as liquidator. The Liquidator can be reached at: Leung Fung Yee Alice Jardine House, 5th Floor 1 Connaught Place Central, Hong Kong HONG KONG ARCHITECTURAL: Creditors' Proofs of Debt Due on Oct. 24 ----------------------------------------------------------------- The creditors of Hong Kong Architectural Aluminum Association Limited are required to file their proofs of debt by October 24, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on September 10, 2008. The company's liquidator is: Chan Lok Sang Tai Yau Building, 21st Floor 181 Johnston Road Wanchai, Hong Kong MAXWING LOGISTICS: Placed Under Voluntary Liquidation ----------------------------------------------------- At an extraordinary general meeting held on September 19, 2008, the members of Maxwing Logistics Limited resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt by October 21, 2008, to be included in the company's dividend distribution. The company's liquidator is: Kong Wing Cheung Fee Tat Commercial Centre, 21st Floor No. 613 Nathan Road Kowloon, Hong Kong NEW WORDLWIDE: Placed Under Voluntary Liquidation ------------------------------------------------- At an extraordinary general meeting held on September 9, 2008, the members of New Worldwide Corporation Co., Limited agreed to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt by Nov. 7, 2008, to be included in the company's dividend distribution. The company's liquidator is: Tseng Yih Sun Kingsford Industrial Centre Unit 2, 8th Floor No. 13 Wang Hoi Road Kowloon Bay Kowloon, Hong Kong NGEI CHEONG: Creditors' Meeting Set for October 15 -------------------------------------------------- The creditors of Ngei Cheong Hong International Limited will meet on October 15, 2008, at 10:15 a.m., for the purposes provided for in Sections 241, 242, 243, 244 and 251 of the Companies Ordinance. The meeting will be held at Room 2429, 24th Floor of Sun Hung Kai Centre, 30 Harbour Road in Wanchai, Hong Kong. PLEXWOOD LIMITED: Members and Creditors to Meet on October 23 ------------------------------------------------------------- The members and creditors of Plexwood Limited will meet on October 23, 2008, at 11:00 a.m. and 11:15 a.m., respectively, at 1401, Level 14 of Tower 1, Admiralty Centre, in 18 Harcourt Raod, Hong Kong. At the meeting, Cosimo Borrelli, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. TOTAL PROPERTY: Members' and Creditors' Meeting Set for Oct. 23 --------------------------------------------------------------- The members and creditors of Total Property Services Limited will meet on October 23, 2008, at 11:30 a.m. and 11:45 a.m., respectively, at 1401, Level 14 of Tower 1, Admiralty Centre, in 18 Harcourt Raod, Hong Kong. At the meeting, Cosimo Borrelli, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. WORLDWIDE TRANSPORT: Members and Creditors to Meet on Oct. 23 ------------------------------------------------------------- The members and creditors of Worldwide Transport (Far East) Limited will meet on October 23, 2008, at 12:00 noon and 12:15 a.m., respectively, at 1401, Level 14 of Tower 1, Admiralty Centre, in 18 Harcourt Raod, Hong Kong. At the meeting, Cosimo Borrelli, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. XINAO GAS: Moody's Downgrades Sr. Unsecured Bond Rating to Ba2 -------------------------------------------------------------- Moody's Investors Service has downgraded to Ba2 from Ba1 of Xinao Gas Holdings' (Xinao) senior unsecured bond rating. At the same time, Moody's has affirmed the company's corporate family rating at Ba1. The outlook for both ratings is stable. "The downgrade of the bond rating mainly reflects structural subordination risk as Xinao's subsidiary debt to total debt and total asset has shown an increasing trend in the past few years and is above 75% and 30% respectively as of 1H2008," says Jennifer Wong, Moody's lead analyst for the company, adding "Moody's considers such high level of subsidiary debts would impair the priority of claims for the senior unsecured bondholders at the holding company." "Although Xinao has indicated its intention to lower subsidiary level debt, given its reliance on on-shore borrowings at the subsidiary or project level to fund its operations in China, such ratios are likely to remain at a high level in the next year or two," adds Ms. Wong. Currently, the Ba1 corporate family rating continues to reflect Xinao's geographically diversified piped gas operations and large market presence - often involving monopoly positions - to distribute gas for 30 years and favorable industry trends that offers growth potential. The company has also demonstrated its ability to grow rapidly under favorable conditions and generate a more stable revenue structure by gradually increasing the proportion of piped gas sales as compared to one-off connection fees. At the same time, balancing these strengths are the following key credit concerns: a relatively short track record at managing the financial and operational business challenges at its current scale; the company's exposure to China's evolving regulatory and operating environments and execution risk in acquiring projects. Furthermore, downward pressure on connection fees may increase cash flow volatility, while negative free cash flow (FCF) and high capex limit its financial flexibility. Xinao's projected financial metrics -- EBIT/Int of 3.5-4.5x and RCF/TD of 13-20% in the next two years -- remain in line with a Ba1 rating, after taking into consideration the increasing proportion of cash flow generated from the more stable piped gas sales. Upward rating pressure would evolve over time if Xinao demonstrates the ability to generate FCF on a consistent basis; and achieves a track record for raising piped gas penetration for its projects in different provinces, such that the more stable piped gas sales account for most of its revenue and gross profit. Consistent and transparent regulation over tariffs would also be positive for the rating. Key credit metrics that Moody's would consider for a rating upgrade include: EBIT/Int greater than 5.0- 5.5x and RCF/TD above 20% on a sustainable basis. On the other hand, the rating may experience a downward trend if: (1) the expected ramp-up in the penetration rate is consistently slower than expected; (2) adverse changes in regulatory environments negatively affect its cash-generating ability; or (3) aggressive capital expenditure for new initiatives such as overseas expansion emerges. The key credit metrics that Moody's would consider for a rating downgrade include: EBIT/Int below 3.0- 3.5x and RCF/TD below 10-12%. Xinao Gas Holdings Ltd (Xinao), listed on the Hong Kong Stock Exchange, is principally engaged in the construction and operation of facilities for piped natural gas distribution to residential and commercial/industrial customers in various cities in China. ========= I N D I A ========= ADHUNIK ALLOYS: Fitch Rates INR920MM Long-Term Loan 'BB+(ind)' -------------------------------------------------------------- Fitch Ratings has affirmed India's Adhunik Alloys & Power Limited's National Long-term issuer rating at 'BB+(ind)'. The Outlook is Stable. Simultaneously, Fitch has assigned the following ratings to its bank loans: -- Outstanding long-term loans aggregating INR2920 million: 'BB+(ind)'; -- Sanctioned non-fund based limits aggregating INR250 million: National Short-term rating of 'F4 (ind)'; and -- Cash Credit Limits aggregating INR350m: National Long-term rating of 'BB+(ind)'. This rating action updates the same published by the agency on 13 August 2008, and reflects AAPL's higher debt/limits as sanctioned by the banking system. AAPL presently operates a sponge iron facility with a capacity of 210,000 MTPA. The company has a single unit with all the facilities located at Jamshedpur in Jharkhand. AAPL is setting up an Integrated Steel Plant for production of high value-added steel products to be utilized by the power and telecommunication industries and their ancillaries. The project is expected to be completed by FY09E and will involve a total project cost of INR5239.3 million. Fitch expects leverage to peak in FY09 and deleverage once the benefits of the capex start accruing. The successful completion of its expansion projects resulting in an improvement in the margins and a debt/EBIDTA ratio lower than 5.5x could potentially act as a positive ratings trigger. Overruns in its expansion plans or a major debt-funded investment that results in the Debt/EBIDTA ratio moving in the range of 7x after FY2009 may be downgrade triggers. LEHMAN BROTHERS: SK Bangur Eyes Buyback of Bank's West Coast Stake ------------------------------------------------------------------ S K Bangur group has expressed interest to buy back Lehman Brothers Holdings Inc.'s stake in West Coast Paper Mills Ltd., The Times of India reports. Lehman Brothers holds close to 6% in the company through two investment arms Lehman Brothers Asia Ltd (LBAL) and LB India Holdings Mauritius Ltd (LIHML), the report says. The West Coast Paper Mills is the flagship company of SK Bangur Group, based in Kolkata, India. "As far as we know, the majority of the Lehman's holding in West Coast Paper is still intact. We are definitely interested in the shares. But we have to check whether we can buy the entire Lehman stake in West Coast Paper as Sebi has imposed a 55% cap on promoters' holding," Bangur sources told The Times of India. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 18, 2008, Lehman has been offloading its assets in India since late last month. According to The Economic Times, Lehman offloaded around Rs 400 crore of its equity holding in nearly 10 companies, most of which were purchased by Deutsche Bank. Prior to the sell-off, Lehman's Indian equity portfolio is estimated to have been worth more than Rs 1,000 crore, which has now nearly halved to about Rs 500 crore, the news agency said. Separately, Japan's Nomura Holdings Inc., which agreed to buy Lehman Brothers Holdings Inc.'s Asian operations, has not included the failed bank's Powai operations in India, The Economic Times reports. The unit employs more than 2,000. A source in Lehman Brothers' Powai office told The Economic Times that the outsourcing facility in India is not included in the deal because it falls under the management of New York, rather than Asia Pacific. However, ET's source said the Japanese bank is soliciting information about the Powai operations. According to The Times, in Mumbai, Lehman had offices in Worli which housed the investment bankers and in Powai which looked after the back-end operations of Lehman Brothers, USA. About S K Bangur Group S K Bangur Group is the sponsor and promoter of West Coast Paper Mills Limited (WCPM), an integrated pulp and paper mill. About Nomura Holdings Headquartered in Tokyo, Japan, Nomura Holdings Inc. -- http://www.nomura.com/-- is a securities and investment banking firm in Japan and has worldwide operations. Nomura is a holding company. The services it provides include trading, underwriting, and offering securities, asset management services, and others. As of March 31, 2008, it operated offices in about 30 countries and regions, including Japan, the United States, the United Kingdom, Singapore and Hong Kong through its subsidiaries. The Company�s customers include individuals, corporations, financial institutions, governments and governmental agencies. Nomura operates in five business divisions: domestic retail, global markets, global investment banking, global merchant banking and asset management. In February, 2007, Nomura acquired Instinet Incorporated. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed $639 billion in assets and $613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16, 2008 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Luc A. Despins, Esq., and Wilbur F. Foster, Jr., Esq., at MILBANK, TWEED, HADLEY & McCLOY LLP, in New York, and Paul Aronzon, Esq., and Gregory A. Bray, Esq., at MILBANK in Los Angeles, California, represent the official unsecured creditors committee. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd., LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which have filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. * INDIA: Banks May Weather Market Turmoil, S&P Says --------------------------------------------------- Standard & Poor's expects India's banking industry to stay afloat despite slow down of growth in core industries and lowered GDP targets, The Times of India reports. The likely impact of slower growth on Indian banks is expected to be "mild", the rating agency said in a report cited by The Times. S&P, the Times relates, said India is also expected to continue to be one of the engines of the world by growing 7.8% in 2008. According to The Times, S&P's report noted that at a broad level, it (the sensitivity of a banking system to economic decline) will depend on the total debt in the system and the strength of the banking industry to withstand or respond to changes in the environment. "The Asian banking systems learned in the financial crisis of the late 1990s that the unsustainable portion of leverage precipitates as nonperforming loans and needs to be addressed by recapitalization and restructuring of the banking system," Ritesh Maheshwari, S&P Primary Credit Analyst of financial market intelligence provider said in the rating agency's report. * INDIA: Study Reveals 1,200 Listed Companies Forged Results ------------------------------------------------------------ A study conducted by Pune-based Indiaforensic Consultancy Services (ICS) said that with recession tightening its grip on global economy and the stock market in a state of flux, more and more Indian companies are tinkering with their financial statements to meet market expectations, The Times of India reports. According to the report, the study, called 'Early Warning Signals of Corporate Frauds', said at least 1,200 companies listed on domestic stock exchanges have forged their financial results by deferring revenue and inflating expenses. The Times says the ICS study, which examined more than 6,000 companies listed on the BSE and the NSE, involved 340 chartered accountants and some chartered accountancy students as respondents. The survey cited by The Times showed that as many as 73% of respondents said the motive for committing accounting statement frauds was to exceed expectations of stock market analysts. Meanwhile, the report says PwC associate director (forensic services) Sumit Makhija and Haribhakti & Company's Arijit Chakraborty believe that accounting frauds are on the rise. ================= I N D O N E S I A ================= PT PERTAMINA: To Invest US$500 Mil. in Oil and Gas Project in Cepu ------------------------------------------------------------------ Jakarta Post reports that PT Pertamina plans to spend US$500 million next year on its 50%-owned oil and gas project in Cepu, East Java. The remaining 50% is held U.S.-based oil company ExxonMobil. The Post, citing Pertamina Finance Director Frederick Siahaan, says the company will fund the project through the use of internal revenues due to the current unfavorable market conditions. The report noted that Pertamina had planned to seek loans of up to US$1 billion from foreign banks to finance the estimated US$2 billion project. About PT Pertamina PT Pertamina (Persero) -- http://www.pertamina.com/-- is a wholly state-owned enterprise. The enactment of Oil and Gas Law No. 22/2001 in November 2001 and Government Regulation No.31/2003 has changed its legal status from a special state owned enterprise into a Limited Liability Company. In carrying out its activities, PT Pertamina implements an integrated system from upstream to downstream. Pertamina operates seven oil refineries with a total output capacity of around 1 million barrels per day. However, these refineries only cover about three-quarters of domestic oil demand, the rest is supplied by imports. * * * In August 2005, Pertamina's debt to United States firm Karaha Bodas Company rose from IDR2.54 trillion to IDR2.99 trillion. The debt had increased when, in 2003, a U.S. court ordered the Company to pay compensation to KBC, relating to an international arbitration decision, when the Indonesian Government halted a geothermal project in Karaha Bodas, East Java. Since that time, the debt has steadily risen due to the Company's failure to pay the compensation immediately. A report by the Troubled Company Reporter-Asia Pacific on August 21, 2008, said the company owes more than IDR300 billion (US$32.72 million) to Indonesian Steel Cylinder Producers Association (Asitab), and the Indonesian Gas Stove Producers Association (Apkogi). ========= J A P A N ========= NOMURA HOLDINGS: To Buy Lehman Brothers' Asia Pacific Franchise --------------------------------------------------------------- Nomura Holdings Inc. has agreed to acquire Lehman Brothers' franchise in the Asia Pacific region including Japan and Australia. The transaction is subject to a number of conditions. As reported by the Troubled Company Reporter on September 16, 2008, Lehman Brothers Holdings Inc. filed a petition under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York early morning on September 15. The report said that none of the broker-dealer subsidiaries or other subsidiaries of the were included in the Chapter 11 filing and all of the broker-dealers will continue to operate. The deal includes all of Lehman Brothers' franchises and approximately 3,000 employees in multiple locations in the Asia- Pacific region. Lehman has been a strong player in the investment banking field, particularly M&A, execution services, non-cash business including derivatives, electronic trading and prime brokerage. By combining two strong client franchises, the partnership will enable Nomura to strengthen its wholesale business and to further realize its strategy of delivering Asia to the world. Under the terms of the transaction all employees in Asia Pacific will be offered employment with Nomura. The deal does not include any trading assets or trading liabilities. Kenichi Watanabe, Nomura's President and CEO, said: "This is a transformational deal that allows us to bring together the strengths of Nomura and Lehman Brothers to further deliver value to our clients. It will significantly extend our reach in Asia. We see immediate strategic benefits, delivering the scale and scope to realize our vision to be a world-class investment bank. "The businesses we are acquiring are hugely successful with excellent management and staff. This is a once in a generation opportunity and we are delighted to be able to partner with Lehman Brothers' talented people to create one of the biggest independent global financial institutions that provides world-class investment banking services to clients across the globe. Our ability to capitalize on this opportunity in spite of such volatile markets reflects our financial strength and demonstrates how well we have managed the credit crisis. This deal is validation for our strategy," said Mr. Watanabe. Jesse Bhattal, CEO of Lehman Brothers Asia, added: "To partner with such a reputable firm as Nomura is truly a remarkable opportunity for both firms, as it creates a completely complementary platform across an expanded range of products and services. We are honored to work with Nomura in building a platform which we believe offers tremendous potential." About Nomura Holdings Nomura Holdings, Inc. -- http://www.nomura.com/ -- is a securities and investment banking firm in Japan and has worldwide operations. Nomura is a holding company. The services it provides include trading, underwriting, and offering securities, asset management services, and others. As of March 31, 2008, it operated offices in about 30 countries and regions, including Japan, the United States, the United Kingdom, Singapore and Hong Kong through its subsidiaries. The company's customers include individuals, corporations, financial institutions, governments and governmental agencies. Nomura operates in five business divisions: domestic retail, global markets, global investment banking, global merchant banking and asset management. In February, 2007, Nomura acquired Instinet Incorporated. * * * Nomura Holdings still carries Fitch Ratings' 'C' individual rating. On Aug. 1, 2008, the Troubled Company Reporter - Asia pacific , citing the Wall Street Journal, reported that Nomura Holdings posted a JPY76.6 billion (US$712.8 million) net loss for its fiscal first quarter, from a JPY75.9 billion net profit a year earlier. The reported loss, the report said, came after write- downs of risky debt products, and a Japanese bank's expectation that difficult market conditions will continue. SHINSEI BANK: Sees 80% Drop in Full Year Profit on Lehman Exposure ------------------------------------------------------------------ In a company press release, Shinsei Bank Limited has revised its forecasts for consolidated earnings for the interim period ending September 30, 2008; the fiscal year ending March 31, 2009, and its non-consolidated earnings forecast for the fiscal year ending March 31, 2009. The company revised its full year consolidated forecast for net income for the fiscal year ending March 31, 2009 from JPY62.0 billion to JPY12.0 billion due primarily to the impact on its Institutional Group that included the expected losses to entities of Lehman Brothers Holdings Inc. As reported by the Troubled Company Reporter on September 16, 2008, Lehman Brothers Holdings Inc. filed a petition under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the Southern District of New York early morning on September 15. The report said that none of the broker-dealer subsidiaries or other subsidiaries of the were included in the Chapter 11 filing and all of the broker-dealers will continue to operate. In a separate company disclosure, the company said its maximum exposure to Lehman Brothers is approximately JPY38 billion, largely comprised of an unsecured loan of JPY25 billion to a Japanese entity guaranteed by Lehman Brothers, JPY9 billion in bonds (notional amount), and market counterparty risk of JPY1 billion. The company added that it is taking prompt action to manage its exposure and maximize recovery. In addition, the bank has International Swaps and Derivatives Association/CSA agreements in place. "These figures leave a very bad impression. The JPY38 billion to Lehman was already announced but the size of the downward revision is much bigger than expected," Bloomberg News cited Hiromichi Tsuyukubo, a hedge-fund manager in Tokyo at Myojo Asset Management Japan Co., which oversees about US$150 million, as saying. Meanwhile, the company said that the Individual Group, which now includes the operations of GE Consumer Finance that is expected to contribute JPY30 billion to the above forecast, contributed in part to offset the lower performance of the Institutional Group. Accordingly, Shinsei Bank also revised its full year non- consolidated forecast for net income for the fiscal year ending March 31, 2009 from CNY60.0 billion to CNY12.0 billion. Shinsei Bank revised its interim consolidated forecast for net income for the interim period ending September 30, 2008 from JPY28.0 billion to a loss of JPY15.0 billion due largely to the expected losses to entities of Lehman Brothers Holdings, Inc., which filed for bankruptcy. This forecast does not include any contribution from the newly acquired GE Consumer Finance that is expected to contribute to earnings only from the second half of this fiscal year. According to Bloomberg News, the bank will make additional provisions on European asset-backed securities and investments. Chief Executive Officer Thierry Porte is betting that Japan's consumer finance industry, after contracting since a 2006 crackdown by authorities on interest rates and collection tactics, is poised to recover, Bloomberg News relates. About Shinsei Bank Headquartered in Tokyo, Japan, Shinsei Bank Ltd -- http://www.shinseibank.com/-- is a financial institution providing a full range of financial products and services to both institutional and retail customers based on a three-pillar strategic business model comprising institutional banking, consumer and commercial finance and retail banking. The Bank has total assets of JPY11.5 trillion (US$115 billion) on a consolidated basis (as of March 2008) and a network of 41 outlets that includes 35 Shinsei Financial Centers, 2 Platinum Centers and 4 BankSpots in Japan. * * * The bank continues to carry Fitch Ratings affirmed Shinsei Bank Ltd's Short-term foreign and local currency IDRs at 'F2', Individual 'C', Support '3', and Support Rating Floor 'BB+'. Shinsei Bank Ltd also continues to carry a "BB" Subordinated Debt rating, which was placed by Mikuni Credit Ratings on October 25, 2006. SHINSEI BANK: Acquires GE Consumer Finance for JPY580 Billion ------------------------------------------------------------- Shinsei Bank Limited has acquired GE Consumer Finance Co. Ltd. (GECF) and its subsidiaries for an all cash consideration of JPY580 billion from GE Japan Holdings Corporation. Shota Umeda, who has over 20 years experience in GE in Japan, has been appointed as the president of this new subsidiary. With this acquisition, Shinsei has taken a contrarian approach to consumer finance which is currently undergoing an unprecedented transformation. GECF brings additional scale in personal loans, credit cards, mortgage and sales finance to Shinsei's existing related operations in Shinsei Bank, APLUS and Shinki. The newly acquired company will contribute immediately to Shinsei's earnings from October 2008 with an estimated JPY30 billion earnings contribution in this fiscal year. "Stable consumer credit is an integral component of every developed economy. Shinsei has the opportunity now to be a leader in bringing together highly-trusted retail banking and responsible consumer lending � lending that is sustainable for both lenders and customers alike," said Thierry Porte, President and Chief Executive Officer of Shinsei Bank. "We believe we have made the right choice to capitalize on the current market dislocation which allows us to accelerate our development as a leading responsible lender with a current customer base that is now expected to exceed 12 million accounts. This acquisition will increase both the scale and competencies of our Individual Group and opens up further opportunity for synergy between our retail banking and consumer finance operations � all built upon Shinsei's foundation of best-in-class corporate governance, compliance, risk management and IT expertise." Shinsei believes this acquisition will increase shareholder value for three main reasons: (a) "we are acquiring a high quality customer base originated under a highly-regarded Lake brand and built upon consistently sound underwriting. This acquisition also brings to Shinsei a highly effective management team and workforce. (b) this is a very attractive acquisition from a financial perspective. We are acquiring JPY879 billion in assets (personal loans (JPY647 billion), mortgage loans (JPY105 billion), credit card/sales receivables (JPY81 billion) and other assets (JPY44 billion)) for a total debt and equity consideration of JPY580 billion yen funded entirely by our internal funding sources of mainly stable retail deposits. Capital optimization will be carried out after closing with no impact on a consolidated basis. This consideration provides for JPY221 billion of provisions for future grey zone claims as well as JPY64 billion in credit reserves for losses unrelated to grey zone. The purchase agreement includes an indemnity from GE that provides protection for potential losses beyond JPY203.9 billion from the majority of the legacy accounts with grey zone interest exposure. Total goodwill from the acquisition is expected to be a modest JPY15 billion and other intangible assets will be recorded at approximately JPY27 billion upon consolidation with Shinsei Bank as at September 30, 2008. The consolidated earnings contribution to Shinsei from GECF is forecasted at JPY30 billion for the fiscal year ending March 31, 2009. (c) there are significant opportunities for both expense and revenue synergies across the related operating entities. While much of the potential impact has not been factored into current forecasts, the opportunities for further profitability include the ability to utilize retail deposits for the funding of GECF, potential cross selling of deposit services, consumer, mortgage and auto loans, credit cards and insurance brokerage services to 12 million existing accounts, and further operational efficiencies leveraging Shinsei's technology and operating platforms." The demands and preferences for consumer financial services will continue to grow in both diversity and sophistication, and the provision of responsible consumer credit solutions will be an important part of meeting the future needs of its individual customers. With this strategic, transformational acquisition, Shinsei is well positioned to be a leader in redefining retail and consumer finance in Japan. About Shinsei Bank Headquartered in Tokyo, Japan, Shinsei Bank Ltd -- http://www.shinseibank.com/-- is a financial institution providing a full range of financial products and services to both institutional and retail customers based on a three-pillar strategic business model comprising institutional banking, consumer and commercial finance and retail banking. The Bank has total assets of JPY11.5 trillion (US$115 billion) on a consolidated basis (as of March 2008) and a network of 41 outlets that includes 35 Shinsei Financial Centers, 2 Platinum Centers and 4 BankSpots in Japan. * * * The bank continues to carry Fitch Ratings affirmed Shinsei Bank Ltd's Short-term foreign and local currency IDRs at 'F2', Individual 'C', Support '3', and Support Rating Floor 'BB+'. Shinsei Bank Ltd also continues to carry a "BB" Subordinated Debt rating, which was placed by Mikuni Credit Ratings on October 25, 2006. * JAPAN: S&P Cuts Rating on Various Synthetic CDO Transactions -------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its ratings on 80 tranches relating to 56 Japanese synthetic CDO transactions. At the same time, S&P placed its ratings on seven tranches relating to six Japanese synthetic CDO transactions on CreditWatch with negative implications. The downgrades and CreditWatch placements reflect a review of Japanese synthetic CDO tranches that had already been placed on CreditWatch, plus a review of synthetic CDO tranches with exposure to any one of Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc. (Lehman; D/--/D), American International Group Inc. (AIG; A-/Watch Dev/A-1), Bank of America Corp. (BofA; AA-/Watch Neg/A-1+), Washington Mutual, Inc. (WAMU; BB-/Negative/B), or any of their subsidiaries. The downgrades and CreditWatch placements reflect the impact on the relevant portfolios of several events that have occurred since the start of September: the placement of Fannie Mae and Freddie Mac under regulatory conservatorship; Lehman's Chapter 11 bankruptcy filing; and negative rating migration that reflects, but is not limited to, the downgrades and CreditWatch placements of AIG, BofA, and WAMU. Synthetic Rated Overcollateralization (SROC) is the key measurement used to determine whether a rating action is required. It captures the major influences on portfolio performance: events of default, asset migration, amortization of assets, and time decay. Ratings Lowered: Helium Capital Ltd.: Corporate basket limited recourse secured credit-linked extendable notes (Scarborough) series 64 To From Issue Amount SROC (%) BB- A-/Watch Neg AU$100 million 98.3916 Limited recourse secured floating rate credit-linked notes series 65 To From Issue Amount SROC (%) B BBB JPY2 billion 98.7907 Series 79 limited recourse secured floating rate credit-linked notes To From Issue Amount SROC (%) BB/Watch Neg BBB- US$20 million 99.4535 Beryl Finance Ltd.: Floating rate secured portfolio credit-linked notes series 86 To From Issue Amount SROC (%) BB BBB US$10 million 99.5576 Hummingbird Securitisation Ltd.: Series 2 loan To From Issue Amount SROC (%) AA AAA/Watch Neg JPY3 billion 57.5301 Series 2005-10 secured floating rate credit-linked notes To From Issue Amount SROC (%) BB-/Watch Neg BB+ JPY2 billion 99.7345 Andante Ltd.: Credit-linked secured notes series 2 Class To From Issue Amount SROC (%) A-1 B+ AA- JPY1.7 billion 95.4955 A-2 B+ AA- JPY1.3 billion 95.4955 Credit linked secured notes series 4 Class To From Issue Amount SROC (%) A-1 A-/Watch Neg AA- JPY4.1 billion 99.4628 A-2 A-/Watch Neg AA- JPY500 million 99.4628 B BBB/Watch Neg AA- JPY500 million 98.9346 C BBB/Watch Neg AA- US$10 million 98.9449 D-1 BBB-/Watch Neg AA- JPY3.3 billion 98.7392 D-2 BBB-/Watch Neg AA- JPY300 million 98.7392 E-1 BB+/Watch Neg A- JPY500 million 98.7380 E-2 BB+/Watch Neg A- JPY300 million 98.7380 F BBB+/Watch Neg AA- JPY300 million 99.0238 G BBB-/Watch Neg A- JPY1.2 billion 99.0414 ========= K O R E A ========= HYUNDAI MOTOR: Union to Vote for New Tentative Wage Deal -------------------------------------------------------- Hyundai Motor Company's unionized worker will hold a vote to approve the new preliminary wage deal reached by the company and the group on Thursday, Cheon Jong-woo of Reuters reports. According to the report, the deal, which still needs to be approved by union members, includes a 5.61% rise in base salary, a one-off payment of KRW4 million (US$3,548) and a bonus for 2008 of 300% of monthly salary for each employee. Earlier this month, the report recounts, Hyundai's unionized employees vetoed a deal that included a 5.61% rise in base salary, a one-off payment of KRW3 million and a bonus of 300% of monthly salary. That compares with last year's 5.8% base rise and KRW2 million bonus per employee, the same report points out. The report relates the company and the union also agreed to reduce total working hours to 17 hours a day from 20 hours from next year, but to keep production volumes steady. On August 29, 2008, the Troubled Company Reporter - Asia Pacific, citing Reuters, reported that unionized workers at Hyundai and Kia Motors Corp launched another round of partial strikes over a wage deal and working conditions. Union members then told Reuters they also planned to stage further partial strikes if they fail to reach agreements with management. That report said Hyundai's unionized workers started a two- hour walkout on Aug. 27 which was expected to cost the company 1,998 vehicles in lost production. Reuters says that the 12 partial strikes from July 2 during the wage negotiations, caused the company 44,645 vehicles in lost output. Union members at the companies usually make up production losses with overtime work once they reach wage deals. About Hyundai Motor Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/-- has been selling cars in the US since 1986, but it only started selling its heavy trucks stateside in 1998. Hyundai produces 14 models of cars, SUVs, and minivans, as well as trucks, buses, and other commercial vehicles. The company reestablished itself as South Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors (since reduced to about 43%). Hyundai's models for the North American market include the Accent and Sonata; models sold elsewhere include the GRD and Equus. The company also manufactures machine tools for factory automation and material- handling equipment. The Troubled Company Reporter-Asia Pacific reported that the Hyundai Automotive Group is facing its deepest crisis since chairman Chung Mong-koo took over in 1999, with problems like the steep drop of the United States dollar, high oil prices and union demands aggravated by a sweeping criminal investigation regarding the carmaker's alleged creation of slush funds that were used by at least two lobbyists to bribe government officials for business favors, including having KRW55 billion of Hyundai's bad debts written off. Chairman Chung was indicted early in May 2006 for fraud charges. Some of the group's official business has been on hold since the probe on the slush fund started and several top executives were summoned for questioning. On Feb. 5, 2007, a South Korean court handed down the sentence to Mr. Chung for illegally raising US$110 million in slush funds and bribing government officials. Mr. Chung was released on bond and continues to run the auto conglomerate. In May 2008, Yonhap News reported that a group of the company's shareholders filed a civil case against Mr. Chung to claim damages for heavy losses allegedly suffered through his mismanagement and other corporate shenanigans. According to the report, the shareholders, led by a civic group called Solidarity for Economic Reform, filed the lawsuit with the Seoul Central District Court, asking Mr. Chung to pay KRW563 billion (US$537 million) in damages to Hyundai Motor. The lawsuit came a day after prosecutors again demanded a six- year jail term for Mr. Chung for embezzlement and breach of trust, Yonhap said. * KOREA: Government Aims to Give Financial Help to Smaller Firms ---------------------------------------------------------------- South Korea will help keep smaller companies from failing due to temporary cash shortages, despite healthy business performances, with the central bank ready to supply funds, Reuters reports, citing Finance Minister Kang Man-soo. According to the report, the Financial Services Commission will soon unveil detailed measures to help small and medium-sized enterprises, Minister Kang told reporters after a special meeting with the heads of the commission and the Bank of Korea. Minister Kang, the report relates, said there was no problem with foreign-currency liquidity at financial institutions operating in the country but that authorities would keep closely watching the situation and take pre-emptive measures when necessary. ==================== N E W Z E A L A N D ==================== BRASS MAGAZINE: Proofs of Debt Due on September 30 -------------------------------------------------- The High Court at Auckland has appointed Damien Grant and Steven Khov, insolvency practitioners of Auckland, as liquidators of Brass Magazine Limited. Creditors are required to file their proofs of debt by Sept. 30, 2008, to be included in the company's dividend distribution. Creditors and shareholders may direct their inquiries to: Waterstone Insolvency PO Box 352, Auckland Freephone: 0800CLOSED Facsimile: 0800FAXWSI Email: enquiries@waterstone.co.nz HIGHLINE ROOFING: Commences Liquidation Proceedings --------------------------------------------------- The High Court at Wellington convened a hearing on Sept. 8, 2008, to consider an application putting Highline Roofing Limited into liquidation. The application was filed on July 22, 2008, by the Commissioner of Inland Revenue. The plaintiff's address for service is at: Inland Revenue Department Legal and Technical Services 7-27 Waterloo Quay Wellington Telephone: (04) 890 1127 Facsimile: (04) 890 0009 Julia Marie Snelson is the plaintiff's solicitor. LANDSCAPE CONCEPTS: Commences Liquidation Proceedings ----------------------------------------------------- The High Court at Invercargill convened a hearing on Sept. 10, 2008, to consider an application putting Landscape Concepts Limited into liquidation. The application was filed on June 26, 2008, by the Commissioner of Inland Revenue. The plaintiff's address for service is at: Inland Revenue Department Legal and Technical Services 1st Floor Reception 224 Cashel Street (PO Box 1782) Christchurch 8140 Telephone: (03) 968 0807 Facsimile: (03) 977 9853 Julie Newton is the plaintiff's solicitor. MT FYFFE: Liquidators Set September 30 as Claims Bar Date -------------------------------------------------------- The High Court has appointed Stephen John Tubbs, chartered accountant, and Colin Anthony Gower, insolvency practitioner, both of Christchurch, as liquidators of Mt Fyffe Developments Limited. Creditors are required to file their proofs of debt by Sept. 30, 2008, to be included in the company's dividend distribution. Creditors and shareholders may direct their inquiries to: Barbara King BDO Spicers Level 6, Spicer House 148 Victoria Street Christchurch 8013 Telephone: (03) 353 5528 Facsimile: (03) 353 5526 Email: barbara.king@chc.bdospicers.com OHOKA MOUNTAIN: Shareholders Opt to Liquidate Business ------------------------------------------------------ Pursuant to Section 241(2)(a) of the Companies Act 1993, the shareholders of Ohoka Mountain Views Limited resolved that the company be liquidated and appointed Iain Andrew Nellies and Wayne John Deuchrass, as liquidators. Creditors and shareholders may direct their inquiries to: Iain Andrew Nellies Wayne John Deuchrass Insolvency Management Limited Level 1, 148 Victoria Street PO Box 13401 Christchurch ORAKEI GROUP: Placed Under Liquidation -------------------------------------- Pursuant to Section 241(2)(a) of the Companies Act 1993, the shareholders of Orakei Group Limited resolved that the company be liquidated and appointed Grant Bruce Reynolds, insolvency practitioner of Auckland, as liquidator. Creditors and shareholders may direct their inquiries to: Grant Reynolds Reynolds and Associates Limited PO Box 259059 Greenmount, Auckland Telephone: (09) 526 0743 Facsimile: (09) 526 0748 PULSE EVENTS: Liquidators Set September 30 as Claims Bar Date ------------------------------------------------------------- The High Court at Hamilton has appointed Damien Grant and Steven Khov, insolvency practitioners of Auckland, as liquidators of Pulse Events Limited. Creditors are required to file their proofs of debt by Sept. 30, 2008, to be included in the company's dividend distribution. Creditors and shareholders may direct their inquiries to: Waterstone Insolvency PO Box 352, Auckland Freephone: 0800CLOSED Facsimile: 0800FAXWSI Email: enquiries@waterstone.co.nz SECA LTD: Proofs of Debt Due on September 30 -------------------------------------------- The High Court at Auckland has appointed Damien Grant and Steven Khov, insolvency practitioners of Auckland, as liquidators of Seca Limited. Messrs. Grant and Khov replaced Robert Laurie Merlo who had been appointed liquidator on June 17, 2008. Creditors are required to file their proofs of debt by Sept. 30, 2008, to be included in the company's dividend distribution. Creditors and shareholders may direct their inquiries to: Waterstone Insolvency PO Box 352, Auckland Freephone: 0800CLOSED Facsimile: 0800FAXWSI Email: enquiries@waterstone.co.nz TEPAKI GROUP: Commences Liquidation Proceedings ----------------------------------------------- The High Court at Wellington convened a hearing on Sept. 8, 2008, to consider an application putting Tepaki Group Limited into liquidation. The application was filed on July 10, 2008, by V & R Consultants Limited. The plaintiff's address for service is at: Credit Consultants Debt Services NZ Limited Level 3, 3-9 Church Street PO Box 213 or DX SX 10069 Wellington Telephone: (04) 470 5972 Dianne S. Lester is the plaintiff's solicitor. * NEW ZEALAND: Central Bank Takes Actions to Alleviate Liquidity ---------------------------------------------------------------- The Reserve Bank reiterated its confidence that the New Zealand banking system remains sound, despite significant further turbulence in the US and global financial markets over the past week. Reserve Bank Governor Alan Bollard said disruptions in the US markets are reverberating around the world. New Zealand banks are not directly involved, although there are indirect adverse effects on liquidity in New Zealand's financial markets. "Financial prices have become volatile and, with heightened uncertainty, investors are becoming more risk averse,"Dr Bollard said. "While New Zealand will inevitably feel the effects of major financial shocks such as this, New Zealand banks are not involved in the sort of complex financial transactions that have caused significant losses in many of the large global institutions. "However, as stated in the Bank's May Financial Stability Report, the New Zealand banks have seen a tightening in the availability of funding in global debt markets, on which they are relatively reliant. These pressures are exacerbated by recent events. "There is no immediate problem, but the Reserve Bank always stands ready to support the liquidity of the New Zealand financial system," Mr. Bollard said. Deputy Governor Grant Spencer said two new measures are being introduced which will assist in alleviating the current liquidity pressures. First, the Reserve Bank proposes to facilitate the injection of funds into the banking system by accepting bank paper in its daily market operations. "While bank paper is already eligible for use in our standing facility, it has not been accepted to date in the Bank's open market operations," Mr. Spencer said. "This measure should take some pressure off the FX swap market which is the usual channel for injecting Reserve Bank funds. "It is our intention to offer longer terms than usual in our operations, up to six months, in order to help ease pressure at the short end of the market. "Second, the Reserve Bank is intending to introduce a new facility which will make certain Asset Backed Securities (ABS) eligible as collateral in its domestic liquidity facilities. This is intended to further broaden the range of assets and institutions that have access to Reserve Bank liquidity. The proposed terms for this facility will be released separately and will be subject to industry consultation before they are finalised." In addition, the Bank will soon be releasing a consultation document on a proposed revised policy for banks in regards to the management of their own liquidity and funding. This policy is aimed at ensuring that the banks are less vulnerable to future liquidity shocks and disruptions in global funding markets. "While these measures will assist in promoting a more stable liquidity situation, the Reserve Bank retains full confidence in the underlying solvency of the New Zealand banking system," Mr. Spencer said. ===================== P H I L I P P I N E S ===================== LODESTAR INVESTMENT: Mulls Possible Investment in Abacus Coal ------------------------------------------------------------- During a special meeting held on September 22, 2008, the Board of Directors of Lodestar Investment Holdings Corporation (LIHC) passed a resolution authorizing the company to explore and consider a possible investment into Abacus Coal Exploration Development Corporation. Moreover, the Board authorized LIHC President Alfonso S. Anggala, to execute appropriate agreements to carry out the mentioned resolution subject to other requisite approvals. In the same meeting, the members of the Board of Directors still constituting a quorum, nominated and appointed Chi Ho Co director, to serve as such until his successor has been elected and qualified. LEHMAN BROTHERS: Metrobank Files Court Rehabilitation for 2 Units ----------------------------------------------------------------- Philippine-based Metropolitan Bank & Trust Company (Metrobank), has submitted to the Regional Trial Court of Makati, petitions for Philippine Investment One, Inc. and Philippine Investment Two, Inc. to be placed under corporate rehabilitation. The two companies are subsidiaries of Singaporean company Lehman Brothers South East Asia Pte Limited. The petitions were filed to ensure the continued normal operations of the companies and defer all claims, actions, and proceedings against them. Metrobank executive vice president, Vicente R. Cuna said, "This creditor-led rehabilitation is a preemptive move to protect the Bank against possible dissipation of assets by foreign claimants." Metrobank earlier disclosed its aggregate loan exposure amounting to Php2.4 billion to the Lehman subsidiaries based in the Philippines. To date, the loan is current and both companies are operating normally. In its petition, Metrobank said that unless a stay order is issued by the Court, the companies will suffer setbacks in meeting their financial obligations while they are being beleaguered by the attempts of some creditors to enforce payment of their claims to the detriment of other creditors, especially with the recent act of default by Lehman Brothers. The Bank said the filing is necessary to prevent any undue preference to certain creditors, and to ensure that the assets of both companies are properly preserved for the benefit of all the creditors during the period of rehabilitation. Philippine Investment One and Two are in the business of investing in non-performing assets of financial institutions under the terms of the Special Purpose Vehicle Act of 2002. Metrobank is confident that it will recover in full its loan principal, given the amount and quality of assets that the two companies are holding. The loan was used to purchase the foreclosed properties and NPLs of Development Bank of the Philippines and sequestered United Coconut Planters Bank. * PHILIPPINES: Asks Companies to Submit Plan to Address Deficiency ------------------------------------------------------------------ The Philippine Stock Exchange requested some of its listed companies to submit their business plans to address their capital deficiencies. These companies include: a) AGP Industrial Corporation (AGP); b) Apex Mining Co., Inc. (APX); c) Central Azucarera de Tarlac (CAT); d) Lodestar Investment Holdings Corporation (LIHC); e) Nexstage, Inc. (NXT); f) NiHAO Mineral Resources International, Inc. (NI); g) PICOP Resources, Inc. (PCP); and h) Unioil Resources & Holdings Company, Inc. (UNI) * GOLDEN TOWER: PSE Lifts Trading Restriction --------------------------------------------- The Philippine Stock Exchange (PSE) has lifted the trading restrictions imposed on brokerage firm Golden Tower Securities and Holdings, Inc. immediately after the company rectified all the audit findings of the Market Regulation Division (MRD). "We are pleased to inform the public that Golden Tower has resolved the audit findings, including a 100 percent buyback of its short position. Golden Tower has taken immediate measures to address company issues, which I think should put to rest any cause of alarm among its investors," PSE president and Chief Executive Officer Francis Lim said. Based on MRD's post audit report, Golden Tower has rectified its violations of the Securities Regulation Code and has been recommended to resume to its regular trading. In the meantime, the PSE is still waiting for HK Securities, Inc., to fulfill its promise to infuse at least the equivalent of US$1 million by September 19, 2008, to cure its short security position. PSE has earlier imposed trade restrictions on HK Securities based on MRD's findings that the company had short security position and misstatement of cash balance. The principal owner of HK Securities, Mr. Rodolfo V. Cruz has agreed that if they are not able to infuse the required amounts within the period agreed upon, HK Securities will immediately be placed under suspension and takeover proceedings to further protect the investing public. ================= S I N G A P O R E ================= ASIAN PARTNERS: Creditors' Proofs of Debt Due on October 14 ----------------------------------------------------------- Asian Partners Asia Pacific (Singapore) Pte. Ltd., which is in voluntary liquidation, requires its creditors to file their proofs of debt by October 14, 2008, to be included in the company's dividend distribution. The company's liquidator is: Chua Keng Khng 89 Short Street #08-11 Golden Wall Centre Singapore 188216 PEC TECHNOLOGY: Wind-Up Petition Hearing Set for October 17 ----------------------------------------------------------- A petition to have PEC Technology (S) Pte Ltd's operations wound up will be heard before the High Court of Singapore on October 17, 2008, at 10:00 a.m. Johnson Controls (S) Pte Ltd filed the petition against the company on September 8, 2008. Johnson Controls' solicitors are: M/S Sim Mong Teck & Partners 7500A Beach Road #09-301 The Plaza Singapore 199591 PROJECTOR S.A.: Court to Hear Wind-Up Petition on October 3 ----------------------------------------------------------- A petition to have Projector S.A.'s operations wound up will be heard before the High Court of Singapore on October 3, 2008, at 10:00 a.m. ING Belgium N.V. filed the petition against the company on Sept. 9, 2008. ING Belgium's solicitors are: Shook Lin & Bok LLP 1 Robinson Road #18-00 AIA Tower Singapore 048542 SZU MING: Court to Hear Wind-Up Petition on October 3 ----------------------------------------------------- A petition to have Szu Ming Trading Pte Ltd's operations wound up will be heard before the High Court of Singapore on October 3, 2008, at 10:00 a.m. Hawley & Hazel Chemical Co., (S) Pte Ltd filed the petition against the company on September 8, 2008. Hawley & Hazel's solicitors are: Drew & Napier LLC 20 Raffles Place #17-00 Ocean Towers Singapore 048620 =============== X X X X X X X X =============== * Fitch: Banks in Asia Achieved Good Levels of Profitability ------------------------------------------------------------ Fitch has reviewed the key trends for banks in Asia, ex-Japan and found that they have remained generally good - for the most part, banks in Asia achieved good levels of profitability, stable or improving asset quality and adequate or strong capitalization. In January this year, the agency issued a report discussing the prospects for Asian banks in 2008, and noted that despite the credit crisis economic growth remained strong in Emerging Asia. Fitch expected growth to slow in Emerging Asia in 2008 but to a still robust 8%, led by growth in China. Based on this outlook, Fitch expected to see, as a regional trend, slower growth in lending and underlying earnings and a modest increase in NPLs from their recent lows. There was, however, little sign of this in the first half numbers with results mostly in line with or exceeding the agency's somewhat cautious forecasts. However, Fitch notes that global growth has slowed more than it initially expected in 2008 and that growth will be slow in the developed economies in 2009. Fitch's forecast for 2008 growth rates for Emerging Asia have also come down, but only slightly, in part because actual growth for 2007 came in well above previous expectations. It was the agency's expectation that negative trends would be more apparent in the second half of 2008 and the recent turmoil in global financial markets, stemming from the ongoing credit crisis centred on the US, is likely to exacerbate these. So far in 2008 in Asia Fitch have seen some adverse developments: Vietnam is experiencing high inflation and some stress in its financial system; India's Long-term local currency Issuer Default Rating has been placed on Negative Outlook due to high domestic debt and a weak fiscal position; Thailand is experiencing a political crisis although this has yet to impact its banks which got off to a good start in 2008; China has seen its stock markets crash and signs of weakness emerge in its property markets; and concerns have revived over Korea's external borrowings. Exposure to Lehman Brothers will result in some additional credit costs during 2008 but for most banks in Asia ex-Japan, such exposures are not very material. In summary, banks in Asia generally continued to perform well in the first half of 2008 but they face growing challenges arising from external shocks and the slowdown in both their domestic economies and in global growth. The extent of this slowdown is not yet clear as it depends on how the credit crisis plays out and how seriously troubles in the financial sector impact the real economy. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Featured Conference Oct. 30-31, 2008 Physician Agreements & Ventures The Millennium Knickerbocker Hotel - Chicago Brochure will be available soon! * * * Beard Audio Conferences presents Bankruptcy and Restructuring Audio Conference CDs More information and list of available titles at: http://beardaudioconferences.com/bin/topics?category_id=BAR * * * Sept. 24, 2008 TURNAROUND MANAGEMENT ASSOCIATION 13 Week Cash Flow Workshop: An Overview McCormick & Schmick's, Las Vegas, Nevada Contact: www.turnaround.org Sept. 24-25, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Florida Annual Golf Tournament Champions Gate Golf Club, Orlando, Florida Contact: 561-882-1331 or www.turnaround.org Sept. 24-26, 2008 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC 15th Annual Fall Conference Scottsdale, Arizona Contact: http://www.ncbj.org/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Desert Ridge Marriott, Scottsdale, Arizona Contact: http://www.iwirc.org/ Sept. 25, 2008 TURNAROUND MANAGEMENT ASSOCIATION Case Study with Tom Kim, TMA Small Business of the Year Turnaround Award - TMA Arizona Chapter Meeting TBD, Phoenix, Arizona Contact: www.turnaround.org Sept. 26, 2008 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Marriott Desert Ridge, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 30, 2008 TURNAROUND MANAGEMENT ASSOCIATION Private Equity Panel Centre Club, Tampa, Florida Contact: www.turnaround.org/ Oct. 3, 2008 AMERICAN BANKRUPTCY INSTITUTE ABI/UMKC Midwestern Bankruptcy Institute H. Roe Bartle Hall Convention Center, Kansas City Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Luncheon - Chapter 11 University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ Oct. 13, 2008 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference Standard Club, Chicago, Illinois Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2008 TURNAROUND MANAGEMENT ASSOCIATION Annual Charity Golf Event Forest Park Golf Course, St. Louis, Missouri Contact: www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION Billiards Networking Night Herbert's Billiards, Secaucus, New Jersey Contact: 908-575-7333 or www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Member Social Davenport Press, Mineola, New York Contact: 631-251-6296 or www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting TBD, Calgary, Alberta Contact: 503-768-4299 or www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION View from the Bench - Bankruptcy Update Summit Club, Birmingham, Alabama Contact: www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION How to Contract with a Turnaround Manager University Club, Portland, Oregon Contact: www.turnaround.org Oct. 22, 2008 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Nevada Award Night McCormick & Schmick's, Las Vegas, Nevada Contact: www.turnaround.org Oct. 23, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting - Election Oriented TBD, Phoenix, Arizona Contact: www.turnaround.org Oct. 23, 2008 TURNAROUND MANAGEMENT ASSOCIATION Effective Turnarounds: A Panel of Professionals TBA, Rochester, New York Contact: www.turnaround.org Oct. 23-24, 2008 AMERICAN CONFERENCE INSTITUTE Distressed Assets Boot Camp TBD, London, United Kingdom Contact: www.americanconference.com Oct. 28, 2008 TURNAROUND MANAGEMENT ASSOCIATION State of the Capital Markets Citrus Club, Orlando, Florida Contact: www.turnaround.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Oct. 29-30, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Corporate Governance Meetings Marriott, New Orleans, Louisiana Contact: www.turnaround.org Oct. 30 & 31, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Physicians Agreements and Ventures Contact: 800-726-2524; 903-595-3800; www.renaissanceamerican.com Oct. 31, 2008 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Hilton, Frankfurt, Germany Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 6, 2008 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Coach House Diner & Restaurant, Hackensack, New Jersey Contact: 908-575-7333 or www.turnaround.org Nov. 11, 2008 AMERICAN BANKRUPTCY INSTITUTE Detroit Consumer Bankruptcy Conference Marriott, Troy, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Case Study Summit Club, Birmingham, Alabama Contact: www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Effective Turnarounds:A View From Workout Consultants TBA, Buffalo, New York Contact: www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Social TBD, Melville, New York Contact: 631-251-6296 or www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Dinner Meeting TBD, Calgary, Alberta Contact: 503-768-4299 or www.turnaround.org Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Special Program Tournament Players Club at Jasna Polana, New Jersey Contact: 908-575-7333 or www.turnaround.org Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Interaction Between Professionals in a Restructuring/Bankruptcy Bankers Club, Miami, Florida Contact: 312-578-6900; http://www.turnaround.org/ Nov. 20, 2008 TURNAROUND MANAGEMENT ASSOCIATION Senior Housing & Long Term Care Washington Athletic Club,Seattle, Washington Contact: www.turnaround.org Nov. 27, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting - Chris Kaup TBD, Phoenix, Arizona Contact: www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Party McCormick & Schmick's, Las Vegas, Nevada Contact: 702-952-2480 or www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function Terminal City Club, Vancouver, British Columbia Contact: 503-768-4299 or www.turnaround.org Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ Dec. 8, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Gathering TBD, Long Island, New York Contact: 631-251-6296 or www.turnaround.org Dec. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer Washington Athletic Club, Seattle, Washington Contact: 503-768-4299 or www.turnaround.org Dec. 11, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer University Club, Portland, Oregon Contact: 503-768-4299 or www.turnaround.org Dec. 18, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer TBD, Phoenix, Arizona Contact: 623-581-3597 or www.turnaround.org Dec. 31, 2008 TURNAROUND MANAGEMENT ASSOCIATION Sponsorships - Annual Golf Outing, Various Events TBA, New Jersey Contact: 908-575-7333 or www.turnaround.org Jan. 21-22, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Conference Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colorado Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 5-7, 2009 AMERICAN BANKRUPTCY INSTITUTE Caribbean Insolvency Symposium Westin Casurina, Grand Cayman Island, AL Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 25-27, 2009 AMERICAN BANKRUPTCY INSTITUTE Valcon Four Seasons, Las Vegas, Nevada Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 13, 2009 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Beverly Wilshire, Beverly Hills, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 17-18, 2009 NATIONAL ASSOCIATION OFBANKRUPTCY TRUSTEES NABT Spring Seminar The Peabody, Orlando, Florida Contact: http://www.nabt.com/ Apr. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference John Adams Courthouse, Boston, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 27-28, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org Apr. 28-30, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ May 14-16, 2009 ALI-ABA Chapter 11 Business Reorganizations Langham Hotel, Boston, Massachusetts Contact: http://www.ali-aba.org June 11-13, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 15-18, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Carve-Out Agreements for Unsecured Creditors Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES China's New Enterprise Bankruptcy Law Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Corporate Bankruptcy Bootcamp: A Nuts & Bolts Primer for Navigating the Restructuring Process Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency � Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Examining the Examiners: Pros and Cons of Using Examiners in Chapter 11 Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES New 'Red Flag' Identity Theft Rules Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers�the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Today's Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Battle of Green & Red: Effect of Bankruptcy on Obligations to Clean Up Contaminated Property Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite Corporate Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ ********* 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 ***