/raid1/www/Hosts/bankrupt/TCRAP_Public/080925.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, September 25, 2008, Vol. 11, No. 191
Headlines
A U S T R A L I A
ACN 000 384 565: To Declare Dividend on September 30
ACN 097 400 738: Joint Meeting Slate for September 30
ALLCO FINANCE: Sets 8th Annual Meeting on October 23
BABCOCK & BROWN: Asks ASIC to Investigate Damaging Speculation
BABCOCK & BROWN: Unit Receives Three Bid Offers
BARUMS HOLDINGS: Members to Hear Wind-Up Report on September 30
ELDERSLIE FINANCE: Owner Sells Luxury Yacht for AU$2.975 Mil.
HYPER TECHNOLOGY: Members and Creditors to Meet on September 30
IAN PRIDHAM: To Declare Dividend on October 7
KRISPY KREME: Posts US$1.9 Million Net Loss in Qtr. Ended Aug. 3
MEDCO ENERGI: Members' Final Meeting Set for September 29
NOVUS AUSTRALIA: Members to Hear Wind-Up Report on September 29
NOVUS EXPLORATION: Members' Final Meeting Set for September 29
NOVUS PETROLEUM: Liquidator to Give Wind-Up Report on September 29
PAN PHARMACEUTICALS: Fined AU$10 Million for Falsification
TOUKLEY DISTRICT: Members to Hear Wind-Up Report on September 30
TRONOX INC: Gary Pittman Has Option to Buy 100,000 Shares
C H I N A
AUTOCAM CORP: Moody's Changes PDR to 'Caa3/LD' from Caa3
GALAXY ENTERTAINMENT: Moody's Shifts B1 CFR Outlook to Negative
SHANGHAI PUDONG: Launches Integration Project Using Eximbills
* CHINA: Milk Industry Braces for Worst on Melamine Scandal
* CHINA: 7 Banks Post Combined US$721 Million in Lehman Exposure
* CHINA: Five Insurers Say They Hold No Lehman Bonds
H O N G K O N G
CROPWOOD LIMITED: Members' Final Meeting Slated for October 22
CYBER CENTRE: Members' Final Meeting Slated for October 20
FULLBON LIMITED: Members' Final Meeting Set for October 20
JUNE AGENTS: Annual Meetings Slated for October 10
MIDTOWN HOLDINGS: Annual Meetings Slated for October 10
PERMTEK LIMITED: Members to Hear Wind-Up Report on October 24
RICH PROGRESS: Members' General Meeting Slated for October 22
SIRUBA (HK): Members' Final Meeting Slated for October 20
SUMITOK-SUPER: Derek and Haughey Cease to Act as Liquidators
SWISSRE ADVISERS: Final General Meeting Set for October 20
I N D I A
CHARTERED FINANCE: RBI Cancels Certificate of Registration
GENERAL MOTORS: Diminishing Liquidity Cues Fitch to Junk IDR
RELIANCE PETROINVESTENTS: RBI Cancels Certificate of Registration
ROHE ASHTAMI: Insolvency Prompts Reserve Bank to Cancel License
I N D O N E S I A
INFOASIA TEKNOLOGI: Moody's Junks Rating to Caa1.id; Outlook Neg.
PERUSAHAAN GAS: Inks Gas Sales Contract with IP for IDR1.7 Tril.
PT PERTAMINA: To Invest US$500 Mil. in Oil and Gas Project in Cepu
* INDONESIA: Five Mining Companies Pay Portion of Royalties
J A P A N
ATARI INC: Stockholders Will Vote on Merger Deal on Oct. 8
ATARI INC: Offering to Buy Options Under 2005 Stock Incentive Plan
NOMURA HOLDINGS: Shares Rise After Buying Lehman Asia & Europe
* JAPAN: S&P Sees Little Potential for Improvement on Economy
K O R E A
HYNIX SEMICONDUCTOR: Cuts Memory Chip Production by 30%
M A L A Y S I A
FOREMOST HOLDINGS: Completes Restructuring Scheme
HO HUP: Receives Letter of Demand from RHB for MYR2.7 Mil. Payment
HO HUP: Receives Arbitral Award for MYR11.53 Million
NIKKO: Receives Summons from SCA for MYR49,174 of Claims
N E W Z E A L A N D
AUSTRAL PACIFIC: Unveils Strategic Alternatives Review
COVENANT TRUSTEE: Receives Purchase Offer, Puts Business for Sale
E-PLUMBING: Liquidators Fix September 29 As Claims Bar Date
BURKE DRAINAGE: Proofs of Debt Due on September 30
FRANCELLA LIMITED: Proofs of Debt Due on September 30
HIGHBROOK LAND: Parsons and Kenealy Appointed as Liquidators
JOHNSTON & MCKEOWN: Parsons and Kenealy Appointed as Liquidators
LOMBARD GROUP: Unit Unable to Pay Brokers Due to Loan Defaults
LS PACIFIC: Liquidators Set October 2 as Claims Bar Date
MCC CONSTRUCTION: Commences Liquidation Proceedings
SEVENSEAS MARINE: Parsons and Kenealy Appointed as Liquidators
SIGNGRAPHIX LIMITED: Wind-Up Petition Hearing Set for October 13
THE P.C.: Parsons and Kenealy Appointed as Liquidators
P A K I S T A N
* PAKISTAN: Moody's Shifts B2 Bond Rating Outlook to Negative
P H I L I P P I N E S
LEHMAN BROTHERS: 8 SPVs in Philippines Owe Php3.6BB from 2 Banks
T A I W A N
MEGA FIN: Expects Record Low Profit of T$5-6BB for 2008 on Lehman
X X X X X X X X
* Moody's Sees Negative Outlook for Global Pharmaceutical Sector
* Moody's: Global Paper Product Industry Still Holds Neg. Outlook
* S&P Drops Ratings on Asia-Pacific Synthetic CDO Transactions
- - - - -
=================
A U S T R A L I A
=================
ACN 000 384 565: To Declare Dividend on September 30
----------------------------------------------------
ACN 000 384 565 Pty Limited, which is subject to a deed of
company arrangement, will declare dividend on Sept. 30, 2008.
Creditors who were unable to prove their debts on Sept. 16, 2008,
are excluded from the dividend distribution.
The company's deed administrator is:
T. M. Pogroske
Grant Thornton
Level 17, 383 Kent Street
Sydney NSW 2000
ACN 097 400 738: Joint Meeting Slate for September 30
-----------------------------------------------------
ACN 097 400 738 Pty Ltd fka Inspired Life Pty Ltd will hold a
meeting for its members and creditors at 10:30 a.m. on Sept. 30,
2008. During the meeting, the company's liquidator, K. A.
Strickland, will provide the attendees with property disposal and
winding-up reports.
The liquidator can be reached at:
K. A. Strickland
WA Insolvency Solutions Pty Ltd
Level 12, 40 St George's Terrace
Perth WA 6000
ALLCO FINANCE: Sets 8th Annual Meeting on October 23
----------------------------------------------------
Allco Finance Group Limited will hold its eight annual general
meeting on October 23, 2008, at 10:00 a.m., at The Ballroom, Four
Seasons Hotel, 199 George Street in Sydney NSW 2000. At the
meeting, the members will be asked to:
-- receive and consider the financial and other reports
for the year ended June 30, 2008.
-- consider and, if thought fit, pass the following
resolution as an ordinary resolution:
* that the Remuneration Report for the financial year
ended June 30, 2008, as disclosed in the Directors’
Report be adopted.
* that Rod Eddington who retires in accordance with
rule 8.1(e) of the Company’s Constitution and,
being eligible, be reelected as a Director of the
Company.
* that Bob Mansfield who retires in accordance with
rule 8.1(e) of the Company’s Constitution and,
being eligible, be re-elected as a Director of the
Company.
* that with effect from the close of the Annual General
Meeting, the Company’s Constitution, as amended in the
manner set out in the Explanatory Notes accompanying
the Notice of Meeting, be approved.
* that the AESP, the principle terms of which are set
out in the Explanatory Notes that accompany the Notice
of Meeting, and the issue of shares under that plan,
be approved for all purposes, including for the purpose
of ASX Listing Rule 7.2 exception 9.
* that the EORP, the principle terms of which are set
out in the Explanatory Notes that accompany the Notice
of Meeting, and the issue of options and rights under
that plan, be approved for all purposes, including for
the purpose of ASX Listing Rule 7.2 exception 9.
* that the DSP, the principle terms of which are set
out in the Explanatory Notes that accompany the Notice
of Meeting, and the issue of rights and shares under
that plan, be approved for all purposes, including for
the purpose of ASX Listing Rule 7.2 exception 9.
* that the NEDSP, the principle terms of which are set
out in the Explanatory Notes that accompany the Notice
of Meeting, and the issue of shares under that plan,
be approved for all purposes, including for the purpose
of ASX Listing Rule 7.2 exception 9.
* that the participation by Mr. David Clarke in the EORP
for the financial year ending 30 June 2009 in the manner
set out in the Explanatory Notes that accompany the
Notice of Meeting, be approved for all purposes
including for the purpose of ASX Listing Rule 10.14.
* that the grant of 64 million options under the EORP
to select senior executives in the manner set out in
the Explanatory Notes that accompany the Notice of
Meeting, be approved for all purposes.
Voting Restrictions
The company will disregard any votes cast on resolutions 5 to 9
(inclusive) by any Director of the Company (except a Director who
is ineligible to participate in any employee incentive scheme in
relation to the entity) and any of their associates.
However, the Company need not disregard votes cast by:
** Any such person as proxy for a shareholder who is
entitled to vote, in accordance with the directions on
the proxy form; or
** The Chairperson of the meeting as proxy for a shareholder
who is entitled to vote, in accordance with their
direction on the proxy form to vote as the proxy decides.
About Allco Finance
Allco Finance Group Ltd. (ASX: AFG) -- http://www.allco.com.au/
-- is an integrated global financial services business,
specializing in asset origination, funds creation and funds
management. The company is a fund manager of alternative assets
in its core asset classes, which include aviation, rail,
shipping, infrastructure, property, private equity and financial
assets. Its primary focus is on commercial property,
predominately completed office buildings and select development
opportunities. It also purchases new and existing commercial
passenger and cargo aircraft for lease to commercial airlines.
In March 2007, Allco HIT Limited acquired Momentum Investment
Finance Pty Limited, Allco Financial Services and International
Mezzanine Funds Management (Australia) Limited. The company is
a vendor of Momentum Investment Finance Pty Limited and Allco
Financial Services. In July 2007, it acquired Allco Equity
Partners Ltd. In December 2007, it completed the acquisition of
the remaining 79.6% stake of Rubicon Holdings(Aust) Limited.
* * *
Published reports said that Allco is in the brink of insolvency
and is currently negotiating a new business plan that will avoid
putting its operations in the hands of administrators.
Allco disclosed a Net Loss After Tax of AU$1,731.6 million for the
12 months to June 30, 2008. The company said this is consistent
with an Australian Stock Exchange (ASX) announcement made on
May 1, 2008, where Allco advised an anticipated loss of in excess
on AU$1.5 billion. The result follows a critical review
of asset values across the business and primarily reflects non-
cash changes.
The Group was heavily impacted by the deterioration in the
financial markets and the resultant loss of value in recently
acquired businesses with non-cash impairments for goodwill,
management rights, loans and equity accounted investments.
BABCOCK & BROWN: Asks ASIC to Investigate Damaging Speculation
--------------------------------------------------------------
Katherine Jimenez of The Australian reports that Babcock & Brown
Ltd has asked the Australian Securities and Investments Commission
(ASIC) to investigate damaging speculation last week that the
company was about to go into administration.
"It's quite extraordinary," chief executive Michael Larkin told
The Australian.
"We've had to respond in the last week and we've responded
together with our banks that this whole rumour of administration
or the banks pulling the (loan) facility ... is a nonsense," the
report quotes Mr. Larkin as saying.
The Australian recounts that on Wednesday, Sept. 17, 2008, ASIC
said it was looking into alleged false rumors about a number of
companies noting that "pushing false rumors designed to harm a
company, such as by forcing a share price down, is illegal."
According to the report, Mr. Larkin fired a broadside at
Australian regulators for not acting sooner on the practice of
short-selling.
About Babcock & Brown Ltd
Headquartered in Sydney, Australia, Babcock & Brown Limited
(ASX:BNB) -- http://www.babcockbrown.com/-- creates, syndicates
and manages investment products for itself, as a principal, and
its investor clients; management of specialised listed and
unlisted funds, and advising and arranging leasing, project
financing and structured finance transactions. It has five
segments: real estate, which engages in principal investment and
investment management activities in the real estate sector;
infrastructure, which engages in financial advisory, principal
finance and funds management activities in the infrastructure and
project finance sector; corporate and structured finance, which is
engaged in the origination, structuring and participation in and
management of equity and debt investments, and operating leasing,
which is engaged in asset acquisition and syndication, and ongoing
management of portfolios of aircraft, railcars and semi-
conductor equipment. In October 2007, it acquired Bluewater.
In November 2007, it acquired Coinmach Service Corp.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 19, 2008, Standard & Poor's Ratings Services lowered its
long-term issuer credit rating on Australia-based Babcock & Brown
International Pty Ltd. (BBIPL) to 'BB' from 'BB+'. The rating
outlook is negative.
BABCOCK & BROWN: Unit Receives Three Bid Offers
-----------------------------------------------
Babcock & Brown Ltd.'s Babcock & Brown Communities Group held
talks to assess the offers they have received for the business
after a two-month period of price discovery, The Sydney Morning
Herald reports.
The Morning Herald relates that the company received bids from
Lend Lease, which owns 7.6 per cent of B&B Communities, Stockland,
and Prime Retirement and Aged Care Trust, which has a unsolicited
40 per cent partial scrip offer on the table.
The offers, the report says, were delivered to the adviser ABN
Amro last Friday morning, Sept. 19, 2008.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 9, 2008, B&B Communities said it received an unsolicited
offer from Australian Property Custodian Holdings Limited as
responsible entity for The Prime Retirement and Aged Care Property
Trust (Prime Trust) in relation to a proportional scrip offer for
40% of the securities of B&B Communities.
The TCR-AP reported on Aug. 29, 2008, that B&B Communities
disclosed the key outcomes of the strategic review of its business
conducted by independent financial adviser ABN AMRO to identify
options for reducing the value gap between the company's
underlying assets and current security price.
Recognizing the current composition of the Board and the potential
conflict of interests of those Directors associated with Babcock &
Brown Limited, a committee of Independent Directors (Judith
Sloan, Andrew Love and Graeme Martin) was established and given
the authority to implement these approved initiatives to be run in
parallel with each other:
-- Price discovery process for the whole of B&B Communities.
-- Internalization of the management agreement,
debt reduction program and capital management
initiatives.
ABN AMRO has been appointed to advise the Board of B&B Communities
on these processes.
About Babcock & Brown Communities
Babcock & Brown Communities Limited (ASX:BBC) --
http://www.bbcommunities.com-- is an integrated owner, operator
and developer of senior living communities. It owns and manages
a portfolio of 56 retirement villages and 29 aged care
facilities across Australia and New Zealand comprising
approximately 10,000 retirement units and 2,200 residential aged
care beds. Within retirement portfolio, BBC has full exposure
to the deferred management fees of approximately 6,800 units and
receives management fees in relation to the remaining units.
BBC's growth is supported by its development pipeline of
approximately 2,200 retirement units and 344 aged care beds
which is expected to be delivered over the next six years.
About Babcock & Brown Ltd
Headquartered in Sydney, Australia, Babcock & Brown Limited
(ASX:BNB) -- http://www.babcockbrown.com/-- creates, syndicates
and manages investment products for itself, as a principal, and
its investor clients; management of specialised listed and
unlisted funds, and advising and arranging leasing, project
financing and structured finance transactions. It has five
segments: real estate, which engages in principal investment and
investment management activities in the real estate sector;
infrastructure, which engages in financial advisory, principal
finance and funds management activities in the infrastructure and
project finance sector; corporate and structured finance, which is
engaged in the origination, structuring and participation in and
management of equity and debt investments, and operating leasing,
which is engaged in asset acquisition and syndication, and ongoing
management of portfolios of aircraft, railcars and semi-
conductor equipment. In October 2007, it acquired Bluewater.
In November 2007, it acquired Coinmach Service Corp.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 19, 2008, Standard & Poor's Ratings Services lowered its
long-term issuer credit rating on Australia-based Babcock & Brown
International Pty Ltd. (BBIPL) to 'BB' from 'BB+'. The rating
outlook is negative.
BARUMS HOLDINGS: Members to Hear Wind-Up Report on September 30
---------------------------------------------------------------
David Carpenter, Barums Holdings Pty Limited's appointed estate
liquidator, will meet with the company's members on Sept. 30,
2008, to provide them with property disposal and winding-up
reports.
The liquidator can be reached at:
David Carpenter
Cutcher & Neale
PO Box 694
Newcastle NSW 2300
ELDERSLIE FINANCE: Owner Sells Luxury Yacht for AU$2.975 Mil.
-------------------------------------------------------------
Peter George, owner of Elderslie Finance Corporation, has put his
luxury 25m yacht Sirius on the market, Anthony Klan of The
Australian reports.
According to the report, Mr. George's Sirius -- which boasts four
en-suites, three bedrooms and separate crew quarters -- is
advertised for sale through Gold Coast agency Ensign Ship Brokers
with an asking price of AU$2.975 million.
The Australian relates that while Mr. George could pocket the
proceeds of the sale of his yacht within months, Elderslie's
10,000-plus investors are likely to have to wait several years
before they see any benefit from the wind-up sale of Elderslie's
assets.
PricewaterhouseCoopers declined to comment on whether Sirius was
bought with funds from Elderslie or whether any of the proceeds of
its sale would be directed to investors, the report says.
About Elderslie Finance
Elderslie Finance Corporation -- http://www.efc.com.au/index.php
-- is an independent, Australian-owned structured finance and
investment management group.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
July 3, 2008, Elderslie Finance Corporation has been placed into
receivership following a Federal Court order allowing its trustee,
Perpetual Trustees WA Ltd, to appoint a receiver, after several
rescue plans for the ailing company fell through.
Perpetual appointed Gregory Hall and Philip Carter of
PricewaterhouseCoopers as the receivers for Elderslie Finance.
HYPER TECHNOLOGY: Members and Creditors to Meet on September 30
---------------------------------------------------------------
Hyper Technology Pty Ltd will hold a meeting for its members and
creditors at 11:00 a.m. on Sept. 30, 2008. During the meeting,
the company's liquidator, Russell Peake, will provide the
attendees with property disposal and winding-up reports.
The liquidator can be reached at:
Russell Peake
Jenkins Peake
Chartered Accountants
PO Box 1570
Geelong VIC 3220
Telephone: (03) 5223 1000
Facsimile: (03) 5221 4938
IAN PRIDHAM: To Declare Dividend on October 7
---------------------------------------------
Ian Pridham Pty Ltd will declare dividend on Oct. 7, 2008.
Creditors who were unable to prove their debts on Sept. 17, 2008,
are excluded from the dividend distribution.
The company's liquidator is:
M. J. M. Smith
Smith Hancock
Level 4, 88 Phillip Street
Parramatta NSW 2150
KRISPY KREME: Posts US$1.9 Million Net Loss in Qtr. Ended Aug. 3
----------------------------------------------------------------
Krispy Kreme Doughnuts, Inc., reported that for the second quarter
of fiscal 2009, ended August 3, 2008, it incurred a net loss
US$1.9 million, compared to a net loss of US$27.0 million in the
second quarter last year. While a number of factors affected
results for the quarter compared to the second quarter of last
year, the largest single factor was that results for the second
quarter of last year included impairment charges and lease
termination costs of US$22.1 million.
Total revenues for the second quarter decreased 9.5% to
US$94.2 million compared to US$104.1 million in the second quarter
last year. The decline in revenues reflects decreases in Company
Stores and KK Supply Chain revenues, partially offset by an
increase in Franchise revenues. Company Stores revenues decreased
13.5% to US$65.1 million. Within this segment,
on-premises revenues fell 10.5% in total -- 4.1% on a same-store
basis -- and off-premises revenues fell 15.7% compared to the
second quarter last year. KK Supply Chain revenues declined 5.1%
to US$22.5 million, and Franchise revenues rose 30.1% to US$6.6
million.
As of August 3, 2008, the company's consolidated balance sheet
reflected cash and debt of approximately US$33.2 million and
US$75.4 million. The company's total assets reach US$208,617,000
while total shareholders' equity is US$63,719,000.
During the second quarter of fiscal 2009, 31 new Krispy Kreme
stores, comprised of five factory stores and 26 satellites, were
opened systemwide, and seven stores, comprised of five factory
stores and two satellites, were closed systemwide. This brings
the total number of stores systemwide at quarter end to 494,
consisting of 286 factory stores and 208 satellites. The net
increase of 24 stores in the quarter reflects a net increase of 29
international stores and a net decrease of five domestic stores.
All 31 new stores were opened by franchisees. Approximately 80% of
total stores are operated by franchisees, and over half are
located outside the United States.
Second quarter systemwide sales increased 3.9% from the second
quarter of last year. The growth in systemwide sales was entirely
attributable to growth in sales by international franchisees; the
domestic component of systemwide sales fell in the second quarter
compared to the second quarter last year, principally due to store
closures over the past 12 months.
"We are not satisfied with our financial results for the second
quarter," said Jim Morgan, Chairman, President and Chief Executive
Officer. "Some of the shortfall was due to external factors, but
we must move forward on implementing our key strategic initiatives
in order to achieve the positive long-term results we believe are
possible." Those initiatives are:
* Building new small retail concept shops in select company
markets to bring our signature doughnuts closer to consumers
and to establish the economics of the domestic hub-and-spoke
model;
* Bringing intense focus to the basics of shop operations to
improve both the consumer experience and our financial
results;
* Developing, testing and deploying new menu offerings to give
consumers more reasons to visit Krispy Kreme;
* Improving how we do business in the off-premises channel,
which has particular revenue and cost pressures;
* Building on our successes in international franchise
development, to which we are devoting additional resources;
* Enhancing franchisee operational support both domestically
and internationally; and
* Providing increased Supply Chain support to an increasingly
global business and improving franchisee service levels and
economics.
"A weakening economy, combined with rising fuel and agricultural
commodity prices adversely affected us in the quarter," Mr. Morgan
continued, "but it's our task to operate successfully no matter
the headwinds. Although our near term results may continue to be
uneven, we have talented and dedicated employees who are working
hard to implement the further improvements necessary for us to be
successful for the long term."
Many factors could adversely affect the company's business. In
particular, the company is vulnerable to further increases in the
cost of raw materials and fuel, which could adversely affect the
company's operating results and cash flows. In addition, several
franchisees have been experiencing financial pressures which, in
certain instances, have become exacerbated in recent quarters.
Royalty revenues and most of KK Supply Chain revenues are directly
related to sales by franchise stores and, accordingly, the success
of franchisees' operations has a direct effect on the company's
revenues, results of operations and cash flows.
Systemwide sales, a non-GAAP financial measure, include sales by
both company and franchise stores. The company believes systemwide
sales data are useful in assessing the overall performance of the
Krispy Kreme brand and, ultimately, the performance of the
company. The company's consolidated financial statements include
sales by company stores, sales to franchisees by the KK Supply
Chain business segment and royalties and fees received from
franchisees, but exclude sales by franchise stores to their
customers.
The company has guaranteed certain loans and leases from third-
party financial institutions on behalf of Equity Method
Franchisees, primarily to assist the franchisees in obtaining
third-party financing. The loans are collateralized by certain
assets of the franchisee, generally the Krispy Kreme store and
related equipment. The company's contingent liabilities related
to these guarantees totaled US$13.3 million and US$17.5 million at
August 3 and February 3, 2008. These guarantees require payment
from the company in the event of default on payment by the
respective debtor and, if the debtor defaults, the company may be
required to pay amounts outstanding under the related agreements
in addition to the principal amount guaranteed, including accrued
interest and related fees. At the time the guarantees were issued,
the company determined the fair value of the guarantees was
immaterial and, accordingly, no amount was reflected for the
liabilities in the consolidated balance sheet.
The aggregate recorded liability for loan and lease guarantees
totaled US$3.2 million as of August 3, 2008, and is included in
accrued liabilities in the accompanying consolidated balance
sheet.
One of the company's lenders had issued letters of credit on
behalf of the company totaling US$18.2 million at August 3, 2008,
the substantial majority of which secure the company's
reimbursement obligations to insurers under the company's self-
insurance arrangements.
A full-text copy of Krispy Kreme's Form 10-Q is available for free
at http://researcharchives.com/t/s?324c
About Krispy Kreme
Headquartered in Winston-Salem, North Carolina, Krispy Kreme
Doughnuts Inc. (NYSE: KKD) -- http://www.KrispyKreme.com/--
is a retailer and wholesaler of doughnuts. The company's
principal business, which began in 1937, is owning and franchising
Krispy Kreme doughnut stores where over 20 varieties of doughnuts
are made, sold and distributed and where a broad array of coffees
and other beverages are offered.
As of August 3, 2008, there were 494 Krispy Kreme stores operated
systemwide in the United States, Australia, Canada, Hong Kong,
Indonesia, Japan, Kuwait, Mexico, the Philippines, Puerto Rico,
Qatar, Saudi Arabia, South Korea, the United Arab Emirates and the
United Kingdom, of which 100 were owned by the company and 394
were owned by franchisees. Of the 494 stores, 286 were factory
stores and 208 were satellites; 234 stores were located in the
United States and 260 were located in other countries.
* * *
Standard & Poor's placed Krispy Kreme Doughnuts Inc.'s long term
foreign and local issuer credit ratings at 'B-' in September 2007.
The ratings still hold to date with a negative outlook.
MEDCO ENERGI: Members' Final Meeting Set for September 29
---------------------------------------------------------
David Clement Pratt and Gregory Winfield Hhall, Medco Energi
(Australia) No 2 Pty Ltd's appointed estate liquidators, will meet
with the company's members on Sept. 29, 2008, to provide them with
property disposal and winding-up reports.
The liquidators can be reached at:
PricewaterhouseCoopers
Level 15, 201 Sussex Street
Sydney NSW 1171
NOVUS AUSTRALIA: Members to Hear Wind-Up Report on September 29
---------------------------------------------------------------
David Clement Pratt and Gregory Winfield Hhall, Novus Australia
Energy Company Pty Limited's appointed estate liquidators, will
meet with the company's members on Sept. 29, 2008, to provide them
with property disposal and winding-up reports.
The liquidators can be reached at:
PricewaterhouseCoopers
Level 15, 201 Sussex Street
Sydney NSW 1171
NOVUS EXPLORATION: Members' Final Meeting Set for September 29
--------------------------------------------------------------
David Clement Pratt and Gregory Winfield Hhall, Novus Exploration
Holdings Pty Limited's appointed estate liquidators, will meet
with the company's members on Sept. 29, 2008, to provide them with
property disposal and winding-up reports.
The liquidators can be reached at:
PricewaterhouseCoopers
Level 15, 201 Sussex Street
Sydney NSW 1171
NOVUS PETROLEUM: Liquidator to Give Wind-Up Report on September 29
------------------------------------------------------------------
David Clement Pratt and Gregory Winfield Hall, Novus Petroleum
Limited's appointed estate liquidators, will meet with the
company's members on Sept. 29, 2008, to provide them with property
disposal and winding-up reports.
The liquidators can be reached at:
PricewaterhouseCoopers
Level 15, 201 Sussex Street
Sydney NSW 1171
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.
TOUKLEY DISTRICT: Members to Hear Wind-Up Report on September 30
----------------------------------------------------------------
P. W. Gidley, Toukley District Bowling Club Limited's appointed
estate liquidators, will meet with the company's members on Sept.
30, 2008, to provide them with property disposal and winding-up
reports. The meeting will be held at Bishop Collins, 5 Colony
Close, in Tuggerah NSW.
TRONOX INC: Gary Pittman Has Option to Buy 100,000 Shares
---------------------------------------------------------
Gary L. Pittman disclosed in a Securities and Exchange Commission
filing that, as of September 3, 2008, he has an option to acquire
100,000 shares of Class A common stock in Tronox Inc. The stock
options are part of his compensation package at Tronox and one-
third of the options will vest each year for three years,
beginning Sept. 3, 2009.
In a Form 4/A filing with the SEC, Mr. Pittman disclosed that the
options will expire on Sept. 3, 2018 and has an exercise price of
US$0.675.
Tronox named Mr. Pittman vice president of special projects on
September 3. The Company entered into an employment contract with
Mr. Pittman that is effective until September 3, 2009, and if not
terminated at the end of the term will automatically renew for
successive one-year periods. Pursuant to the agreement, among
other things, Mr. Pittman will receive a base salary of US$350,000
per annum and will be eligible for bonuses. Mr. Pittman will be
entitled to four weeks of vacation and the use of an apartment
leased in Oklahoma City. Upon termination, other than for
"cause," Mr. Pittman is eligible for a payment of twice his base
salary.
Headquartered in Oklahoma City, Tronox Incorporated (NYSE:TRX) --
http://www.tronox.com/-- is a producer and marketer of titanium
dioxide pigment. Titanium dioxide pigment is an inorganic white
pigment used in paint, coatings, plastics, paper and many other
everyday products. The company's five pigment plants, which are
located in the United States, Australia, Germany and the
Netherlands, supply performance products to approximately 1,100
customers in 100 countries. In addition, Tronox produces
electrolytic products, including sodium chlorate, electrolytic
manganese dioxide, boron trichloride, elemental boron and lithium
manganese oxide.
As reported by the Troubled Company Reporter on August 27, 2008,
Tronox said in a regulatory filing that it is evaluating all
strategic options for the company, including mitigation of
environmental liabilities and capital restructuring. Tronox
said it has experienced significant losses for the year ended
December 31, 2007, and the six months ended June 30, 2008, and has
generated negative cash flows from operations in the current year.
Tronox said that if it continues to experience negative impacts on
its operations, it may need to seek relief under Chapter 11 of the
United States Bankruptcy Code to allow the company to, among other
things, restructure its capital structure and reorganize its
business, including its environmental legacy issues.
The company has US$1.7 billion in total assets, including US$703.5
million in current assets, as at June 30. The company has
US$937.8 million in current debts and US$336.9 million in total
noncurrent debts.
Tronox has retained the investment banking firm Rothschild Inc. to
further assist the company in evaluating strategic options for the
business.
On May 22, 2008, the company announced an involuntary work force
reduction program as part of its ongoing efforts to reduce costs.
As a result of the program, the company's U.S. work force was
reduced by 31 employees. An additional 38 positions that were
vacant prior to the work force reduction will not be filled. There
were no costs associated with the elimination of vacant positions.
The program was substantially completed as of June 30, 2008.
On Aug. 28, 2008, the Company was notified by the New York Stock
Exchange that it is not in compliance with the NYSE's continued
listing standard regarding the average closing price of its Class
B Common Stock. The Company said it has not decided on what
action, if any, it will take with respect to its failure to
satisfy NYSE listing standards. If the Company fails to cure its
listing deficiencies, the NYSE will commence suspension and
delisting procedures.
The TCR said on Sept. 18 that Tronox has been sued by the U.S.
Government to recover costs related to hazardous substances at or
from the Federal Creosoting Superfund site located in the borough
of Manville, Somerset County, New Jersey. According to the
complaint, as of June 15, 2008, the government has incurred at
least US$280 million in unreimbursed response costs related to the
cleanup.
Moody's Investors Service has downgraded affiliate Tronox
Worldwide LLC's Corporate Family Rating to Caa3 from Caa2, and the
Probability of Default Rating was lowered to Ca from Caa3. In
addition, Moody's has downgraded the company's secured revolver
and term loan to B2 from B1 and its unsecured notes to Ca from
Caa3. Standard & Poor's Ratings Services has lowered its ratings
on Tronox, including its corporate credit rating to 'CCC-' from
'CCC+'.
=========
C H I N A
=========
AUTOCAM CORP: Moody's Changes PDR to 'Caa3/LD' from Caa3
--------------------------------------------------------
Moody's Investors Service changed Autocam Corporation's
Probability of Default rating to Caa3/LD from Caa3 and affirmed
the Corporate Family Rating of Caa3 and Caa2 rating of the senior
secured credit facilities. The rating action follows the
completion of a capital restructuring which included an exchange
of 20% of the senior secured debt for newly issued equity by its
parent Titan Holdings, Inc., a cash contribution by certain
shareholders of Titan of US$20 million and a credit agreement
amendment.
Moody's considers the transaction a distressed exchange of the
rated term loan debt, thus has changed the PDR to Caa3/LD. The
PDR will revert to Caa3 in approximately three days. The rating
outlook is negative.
The reduction of the debt of approximately 10% per Moody's
estimate does not materially alter the credit profile reflected in
Autocam's Caa3 CFR. The company's cash flow generation remains
weak and leverage remains high despite the positive effect of the
debt reduction and the cash infusion by its equity holders as a
result of the restructuring. The current rating reflects Moody's
continued concern on the company's weak operating performance
which has been impacted by reduced automotive production levels in
North American and Western Europe, as well as operational
difficulties at Autocam's French subsidiaries, among other
factors.
In Moody's opinion, the operating environment for automotive
supplier will remain challenged and Autocam's will likely persist,
offsetting the benefit from the restructuring.
The negative outlook continues to reflect the company's limited
prospect of near-term improvement in the operating performance in
light of a prolonged challenging operating environment for auto
suppliers which will continue for the next 12-18 months. The
outlook also contemplates the company's weak liquidity position in
spite of the enhancement due to the cash infusion.
The rating action is as follows:
Autocam Corporation
-- Corporate Family Rating: affirmed at Caa3
-- Probability of Default Rating: changed to Caa3/LD from Caa3
-- US denominated first lien term loan affirmed at Caa2
(LGD-3, 39%)
-- US denominated first lien revolving credit facility affirmed
at Caa2 (LGD-3, 39%)
-- Outlook, negative
Autocam Corporation France SARL
-- Euro denominated first lien revolving credit facility
affirmed at Caa2 (LGD-3, 39%)
Moody's last rating action was on August 15, 2008 when Autocam's
CFR was downgraded to Caa3 from B3 with negative outlook.
Autocam Corporation, headquartered in Kentwood, Michigan, is a
manufacturer of extremely close tolerance precision-machined,
metal alloy components, sub-assemblies, primarily for performance
and safety critical automotive applications. Revenues in 2007
were approximately US$387 million from operations in North
America, Europe, Brazil and China.
GALAXY ENTERTAINMENT: Moody's Shifts B1 CFR Outlook to Negative
---------------------------------------------------------------
Moody's Investors Service has changed to negative from stable the
outlook for the B1 corporate family rating and senior unsecured
rating of Galaxy Casino S.A. (Galaxy).
"The outlook change has been prompted by Galaxy's weaker than
expected 1H2008 results, with revenue lowering 18% y-o-y and
EBITDA margin dropping to 5% compared with 10.6% in 2007. This
has come about largely because of the underperformance of city
clubs, lower hold rates at StarWorld and intense market
competition resulting in increased commissions to junket
operators," says Kaven Tsang, Moody's lead analyst for Galaxy.
"The lower operating performance has weakened Galaxy's key credit
metrics -- including Debt/EBITDA and EBITDA interest coverage --
to the extent that they may not support the company's B1 rating
profile in the near term," says Mr. Tsang.
"The company may also need to raise more debt, including interest
free and subordinated debt from Galaxy Entertainment Group
Limited, Galaxy's parent company, to fund its committed capex in
the next 1-2 years if operating cash flow does not improve,"
continues Mr. Tsang.
"The opening of 50 new VIP tables in StarWorld by the end of
September 2008 and the commencement of the Cotai Mega Resort
project in mid-2009 could provide Galaxy with additional cash
flow. However, these new facilities still have to ramp up their
operations and develop a track record of realizing business
targets," he adds.
Market competition will remain intense in the near-to-medium term
in view of the scheduled opening of around 1,500 new tables by
2009, and the fact that visa restriction imposed by the Chinese
government could slow mainland tourist and gaming revenue growth.
However, the Macau government's measures to control the number of
concessionaires and new gaming tables, as well as junket
commission, could temper the impact somewhat.
Galaxy's ratings may come under downward pressure if the company's
operating and financial profile does not improve and/or the
company needs to incur more debt to support its capex so that
EBITDA interest coverage remains under 2-2.5x; and/or debt/EBITDA
fails to trend below 7x.
The up-streaming of funds to the parent entity -- via dividends,
share buyback's or loans -- during the construction phase of
various casino projects would also place negative pressure on the
company's financial profile and the rating.
The rating outlook could revert to stable if Galaxy's operating
performance improves as a result of: 1) stronger cash flow from
the existing properties; and 2) the Cotai Mega Resort commences
operation and realizes its business plan, such that EBITDA
interest coverage approaches 2.5x and Debt/EBITDA moves towards 6-
6.5x.
Galaxy Casino S.A. (Galaxy), incorporated in 2001, holds one of
six concessions/sub concessions licensing it to undertake gaming
activities in Macau. In July 2004, Galaxy opened the Waldo
Casino, which was the group's first casino operation. Since then
the company has opened four other casinos in Macau, with the
flagship StarWorld facility opening in October 2006. In addition,
Galaxy is constructing a large-scale resort in Macau which is
expected to open in mid-2009.
SHANGHAI PUDONG: Launches Integration Project Using Eximbills
-------------------------------------------------------------
Shanghai Pudong Development Bank Co. Ltd. has launched its
integration project, which will merge the bank's offshore banking
system with their local processing center system, into a single
Eximbills Enterprise based solution.
Eximbills Enterprise is an established global standard installed
by many international banks to meet their trade services
processing requirements. It combines a Rapid Application
Development toolkit with a flexible Base Business Model, providing
support for Open Account, Supply Chain Finance, Factoring and
Payments operations, aside from covering the full range of
traditional Import and Export Trade Services.
Through Eximbills Enterprise, this integration project aims to
extend the reach of SPDB's processing center solution to include
their offshore trade finance operations in a secure, stable and
efficient way.
The project will be another milestone in SPDB and China Systems'
long standing business relationship.
Headquartered in Shanghai, China, Shanghai Pudong Development
Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial
bank involved in personal banking, corporate banking, and inter-
bank business. The bank also offers Internet banking and
telephone banking.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
Aug. 28, 2008, Fitch Ratings affirmed the Individual and Support
ratings of Shanghai Pudong Development Bank as SPDB: Individual
'D' and Support '3'.
The bank continues to carry Moody's Investors Service's "Ba1"
long-term bank deposit rating and "D" bank financial strength
rating. It also carries Fitch Ratings' "D" individual rating.
* CHINA: Milk Industry Braces for Worst on Melamine Scandal
-----------------------------------------------------------
The number of children in China affected by milk products found to
be contaminated with industrial chemical melamine has reached
53,000, various reports say.
A Sapa-AFP report posted on The Times says China's health ministry
disclosed that 52,857 children were taken to hospital after
drinking melamine-tainted milk. Most of them had "basically
recovered" after developing kidney stones, the main symptom of
drinking the tainted milk, but 12,892 children remained in
hospital, that report adds.
The surge in number of affected children prompted Li Changjiang,
head of China's product-quality assurance agency, to resign.
Earlier reports said nearly 13,000 Chinese infants got sick, with
four deaths, after drinking the tainted milk formula.
Reuters says, citing state news agency Xinhua News, the Chinese
government has blamed local officials for delays in reporting
problems with the milk powder, and an investigation has found that
Sanlu Group Co. began receiving customer complaints about its milk
powder as long ago as last December.
"Sanlu did not report (the problem) either to the Shijiazhuang
government or related authorities and did not take remedial
action, causing the incident to expand even further," Xinhua News
said in a report cited by Reuters.
Sanlu Group's products were found to contain the highest levels of
melamine, Lee Spears of Bloomberg News says. Its chairwoman, Tian
Wenhua, was fired, removed from her Communist Party of China post,
and detained by police earlier this week, the same report says,
citing Xinhua News Agency.
Recently, New Zealand based dairy exporter Fonterra Co-operative
Group has reduced the value of its 43% stake in China's Sanlu
dairy to about US$42 million, slashing the value of its Chinese
investment by nearly 70%, Food Business review reports.
"The Sanlu brand cannot be reconstructed. How you reconstruct the
assets is the key. We haven't written off the assets because we
think that there may be some way forward," Bloomberg News cited
Chief Executive Officer Andrew Ferrier as saying.
Gavin Evan of Bloomberg News relates Mr. Ferrier said China
remains a "core" part of Fonterra's strategy and Sanlu's plants
may be able to be reorganized to play a role in that. Fonterra
paid US$107 million for its stake in Sanlu in 2006 to access
China's domestic dairy industry.
The melamine scandal now involves 21 other Chinese dairy producers
including three biggest dairy producers by market value -- Yili,
China Mengniu Dairy Co. and Bright Dairy & Food Co., Bloomberg
News says.
Meanwhile, Bloomberg News cited UBS AG and JPMorgan Chase & Co. as
saying that plunging consumer confidence and increased spending on
quality control in the aftermath of the scandal will erode
earnings of Chinese dairy companies.
The Sapa-AFP report says a host of countries — Bangladesh, Brunei,
Burundi, Japan, Gabon, Malaysia, Burma, Taiwan, Hong Kong,
Singapore, Philippines and Tanzania — have barred Chinese milk
products or taken some other form of action to curb their
consumption.
In yet another blow to the country's dairy industry, China Mengniu
Dairy Co., the country's largest milk producer by market value,
plunged by a record in Hong Kong trading after some of its
products were tainted by an industrial chemical, Theresa Tang
writes for Bloomberg News. Bloomberg News reports that on
Sept. 23, Mengniu dropped as much as 66 percent, the most since
its debut in 2004, to HK$6.85, and traded down 58 percent to
HK$8.50 at 10:37 a.m. local time. Trading was suspended on Sept.
17.
The same report says that on on Sept. 23, Selina Sia, analyst at
JPMorgan Chase & Co., told investors "should avoid Mengniu as
there are so many uncertainties," adding that the company "may
incur a loss in the second half as the recalls are expected to
have a meaningful financial impact." The analyst cut her target
price to the book value HK$3.80.
Mengniu's board has apologized for the incident and has recalled
all products that were found to contain the chemical after
conducting tests on "each and every lot" of raw milk sourced and
on final products to check for melamine.
* CHINA: 7 Banks Post Combined US$721 Million in Lehman Exposure
----------------------------------------------------------------
Seven Chinese listed banks have disclosed bond holdings of US$721
million in the bankrupt U.S. investment bank Lehman Brothers as of
Monday, Sept. 22, 2008, Xinhua News reports, citing Securities
Daily.
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 individual exposures included:
* China Construction Bank (CCB) US$191.4 million
* Industrial and Commercial Bank
of China (ICBC) US$151.8 million
* Bank of China US$128.8 million
* CITIC Bank US$76.0 million
* China Merchants Bank US$70.0 million
* Bank of Communication US$70.02 million
* Industrial Bank US$33.60 million
According to the report, China Construction, with the largest
exposure, said earlier it would closely monitor developments,
prudently assess potential losses, make sufficient provision for
impairment losses and protect the bank's legal rights. The Lehman
Brothers bankruptcy would not have a significant impact on CCB's
financial situation, the bank said.
* CHINA: Five Insurers Say They Hold No Lehman Bonds
----------------------------------------------------
China Insurance Regulatory Commission, China's insurance
regulator, said that five listed insurers held no bonds related to
Lehman Brothers Holdings Inc., Bloomberg News reports, citing
Shanghai Securities News.
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.
According to Bloomberg News, China Life Insurance Co., Ping An
Insurance (Group) Co. and China Pacific Insurance (Group) Co. also
didn't hold debts related to American International Group Inc. or
Merrill Lynch & Co.
Aegon AV and MetLife Inc.'s China operations are also not
affected by the bankruptcy of Lehman Brothers and the bailout of
AIG by the U.S. government, the same report notes.
===============
H O N G K O N G
===============
CROPWOOD LIMITED: Members' Final Meeting Slated for October 22
--------------------------------------------------------------
The members of Cropwood Limited will meet on October 22, 2008, at
11:00 a.m., at 905 Silvercord, Tower 2, 30 Canton Road,
Tsimshatsui, in Kowloon, Hong Kong.
At the meeting, James T. Fulton and Cordelia Tang, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
CYBER CENTRE: Members' Final Meeting Slated for October 20
----------------------------------------------------------
A final meeting will be held for the members of Cyber Centre
Development Limited on October 20, 2008, at 2:00 p.m., at the 18th
Floor of Bel Trade Commercial Building, 1-3 Burrows Street, in
Wanchai, Hong Kong.
At the meeting, Chan Yat Lung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
FULLBON LIMITED: Members' Final Meeting Set for October 20
----------------------------------------------------------
A final meeting will be held for the members of Fullbon Limited on
October 20, 2008, at 10:00 a.m., at the 8th Floor of Gloucester
Tower, The Landmark, in 15 Queen's Road Central, Hong Kong.
At the meeting, Iain Ferguson Bruce, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
JUNE AGENTS: Annual Meetings Slated for October 10
--------------------------------------------------
The members and creditors of June Agents Limited will meet on
October 10, 2008, at 4:00 p.m. and 4:30 p.m., at Room 1610-02,
16th Floor of One Hysan Avenue, in Causeaway Bay, Hong Kong.
At the meeting, James Wardell, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
MIDTOWN HOLDINGS: Annual Meetings Slated for October 10
-------------------------------------------------------
The members and creditors of Midtown Holdings Limited will meet on
October 10, 2008, at 5:00 p.m. and 5:30 p.m., at Room 1610-02,
16th Floor of One Hysan Avenue, in Causeaway Bay, Hong Kong.
At the meeting, James Wardell, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
PERMTEK LIMITED: Members to Hear Wind-Up Report on October 24
-------------------------------------------------------------
The members of Permtek Limited will meet on October 24, 2008, at
1:30 p.m., to receive the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Natalia K M Seng
Three Pacific Place, Level 28
1 Queen's Road East
Hong Kong
RICH PROGRESS: Members' General Meeting Slated for October 22
-------------------------------------------------------------
The members of Rich Progress Enterprises Limited will hold their
general meeting on October 22, 2008, at 10:30 a.m., at 13A of Tak
Lee Commercial Building, in 113-117 Wanchai Road, Hong Kong.
At the meeting, Ng Kam Chiu, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
SIRUBA (HK): Members' Final Meeting Slated for October 20
---------------------------------------------------------
The members of Siruba (HK) Co., Limited will meet on October 20,
2008, at 11:00 a.m., at Room 509 of Bank of America Tower, 12
Harcourt Road, in Central, Hong Kong.
At the meeting, Tsang Kwok Fai, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
SUMITOK-SUPER: Derek and Haughey Cease to Act as Liquidators
------------------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey ceased to act as
liquidators of Sumitok-Super High-Tech (H.K.) Company Limited on
September 9, 2008.
The company's former Liquidators can be reached at:
Lai Kar Yan (Derek)
Darach E. Haughey
One Pacific Place, 35th Floor
88 Queensway
Hong Kong
SWISSRE ADVISERS: Final General Meeting Set for October 20
----------------------------------------------------------
A final general meeting will be held for the members of Swissre
Advisers, Limited on October 20, 2008, at 10:00 a.m., at Level 28
of Three Pacific Place, in 1 Queen's Road East, Hong Kong.
At the meeting, Paul David Stuart Moyes, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
=========
I N D I A
=========
CHARTERED FINANCE: RBI Cancels Certificate of Registration
----------------------------------------------------------
The Reserve Bank of India has cancelled the certificate of
registration granted to M/s. Chartered Finance Management Limited
carrying on the business of a non-banking financial institution as
the company has opted to exit from the business of a non-banking
financial institution.
Following cancellation of the registration certificate, M/s.
Chartered Finance Management Limited, cannot transact the business
of a non-banking financial institution.
Under powers conferred by Section 45-IA (6) of the Reserve Bank of
India Act, 1934, the Reserve Bank can cancel the registration
certificate of a non-banking financial company. The business of a
non-banking financial institution is defined in clause (a) of
Section 45-I of the Reserve Bank of India Act, 1934.
M/s. Chartered Finance Management Limited has its registered
office at 33, Sharada Sadan, 11, S.A. Brelvi Road, Fort in Mumbai.
GENERAL MOTORS: Diminishing Liquidity Cues Fitch to Junk IDR
------------------------------------------------------------
Fitch Ratings has downgraded the Issuer Default Rating of General
Motors by one notch to 'CCC' from 'B-', due to diminishing
liquidity and lack of access to capital. In Fitch's previous
downgrade, Fitch stated that diminished capacity to refinance
short-term maturities, or Fitch projections that GM would drop
below US$15 billion in cash could be cause for further downgrades.
Fitch believes that GM would reach minimum required levels of
available liquidity within the next 12 months without access to
external capital. Contributing factors include weakening overseas
results and the impact of the credit crisis on GM and GMAC's
ability to finance retail sales. Continuing operating losses,
restructuring costs and supplier issues will continue to drain
cash at least through 2009, and Fitch expects that General Motors
could reach minimum required levels of cash within the next 12
months without additional capital.
External sources of capital for GM remain limited, indicating that
liquidity drains will accelerate through year-end 2008. Although
GM's overseas operations remain profitable and growing, the state
of the capital markets and the automotive industry severely limit
the amount of capital that can be raised against these holdings.
Fitch also believes that General Motors will also seek additional
cooperation from the UAW in altering the financing structure and
timing of the VEBA trust. Fitch believes that this is likely due
to the fact that in all scenarios, the UAW's interests are best
served by keeping General Motors out of bankruptcy.
Fitch believes that the ability of GM to obtain federal financing
over the near term is highly probable, although the amount, terms,
structure and timing remain uncertain. Fitch's rating action
incorporates this expectation, indicating that approval of a
federal loan guarantee program is not expected to result in a
rating change. In all, Fitch believes that GM will be challenged
to raise financing in an amount that exceeds US$10 billion, and
will therefore be unable to offset expected liquidity drains over
the next 12 months.
Although General Motors continues to make dramatic reductions in
its cost structure, this progress has not been able to keep pace
with the decline in revenues and has led to accelerated operating
losses. Fitch expects that losses from operations will extend into
2010, as GM attempts to complete the restructuring of its labor
force, manufacturing footprint and product lineup. With the rapid
migration of the market to more fuel-efficient vehicles, GM's
product lineup will remain misaligned with market demand over the
near term. International operations continue to add strength to
GM's credit profile, although market weakness in Europe and China
are expected to moderate recent operating results.
In 2010, the industry could benefit from a rebound in economic
conditions and a cyclical trough in industry sales. In
particular, sales of pickup trucks, where the U.S. manufacturers
continue to dominate the market and reap healthy contribution
margins, could benefit from any improvement in the housing market,
although pickup truck sales are not expected to reach previous
levels. GM will also benefit from the terms of the UAW health
care agreement in 2010, and more fully realize the fixed-cost
improvements currently being implemented.
The recent drop in fuel and other commodity prices will also
benefit margins over the near term. However, the company's debt
load, and the associated financing costs, will continue to
escalate, and will represent a material claim on cash flows going
forward, even as GM's earning capacity diminishes. Even in the
event of longer term stabilization in negative cash flows, GM is
not expected to be in a position to reduce its debt load over the
near term, a debt load that is expected to exceed US$50 billion.
Fitch also remains concerned about the state of the asset-backed
securitization market. In a period of deteriorating performance,
a weakening consumer, and highly uncertain capital markets, any
limitation on the ability of domestic manufacturers to
economically access this market and/or offer competitive retail
financing could serve to further ratchet down sales and production
volumes, as did the pullback in leasing activity.
Fitch downgraded these:
General Motors
-- IDR to 'CCC' from 'B-';
-- Senior Secured to 'B/RR1' from 'BB-/RR1'
-- Senior unsecured debt to 'CCC-/RR5' from 'CCC+/RR5'.
General Motors of Canada
-- IDR to 'CCC' from 'B-';
-- Senior unsecured debt to 'CCC-/RR5' from 'CCC+/RR5'.
RELIANCE PETROINVESTENTS: RBI Cancels Certificate of Registration
-----------------------------------------------------------------
The Reserve Bank of India has cancelled the certificate of
registration granted to M/s. Reliance Petroinvetments Limited
carrying on the business of a non-banking financial institution as
the company has opted to exit from the business of a non-banking
financial institution.
Following cancellation of the registration certificate, M/s.
Reliance Petroinvestments Limited, cannot transact the business of
a non-banking financial institution.
Under powers conferred by Section 45-IA (6) of the Reserve Bank of
India Act, 1934, the Reserve Bank can cancel the registration
certificate of a non-banking financial company. The business of a
non-banking financial institution is defined in clause (a) of
Section 45-I of the Reserve Bank of India Act, 1934.
M/s. Reliance Petroinvestments Limited has its registered office
at Maker Chambers IV, 3rd Floor, 222, Nariman Point in Mumbai.
ROHE ASHTAMI: Insolvency Prompts Reserve Bank to Cancel License
---------------------------------------------------------------
The Reserve Bank of India has cancelled the licence of The Rohe
Ashtami Sahakari Urban Bank Ltd., Roha, Dist. Raigad, Maharashtra.
According to the RBI, the bank had ceased to be solvent, and all
efforts to revive it in close consultation with the Government of
Maharashtra had failed and the depositors were being
inconvenienced by continued uncertainty. The Registrar of Co-
operative Societies has also been requested to issue an order for
winding up the bank and appoint a liquidator.
On liquidation, the RBI says every depositor is entitled to
repayment of his/her deposits up to a ceiling of Rs. 1,00,000/-
(Rupees one lakh only) from the Deposit Insurance and Credit
Guarantee Corporation (DICGC) under usual terms and conditions.
The bank was granted licence to commence banking business on
October 26, 1987. The statutory inspection of the bank as on
March 31, 2006 indicated that its financial position was impaired
on which certain operational instructions were issued. The next
inspection of bank with reference to its financial position as on
March 31, 2007 revealed overall deterioration in its financial
position. In order to conserve its liquidity and prevent
preferential payments, the bank was issued directions under
Section 35 A of the Banking Regulation Act, 1949 (As applicable to
Co-operative Societies) restricting its operations, including
placing a ceiling of Rs. 500/- on withdrawal of deposits.
The bank was served a notice on May 2, 2008 to show cause as to
why the licence granted to it should not be cancelled and why
steps should not be taken to wind up the bank. The reply
submitted by the bank was not found satisfactory and hence not
acceptable.
The RBI says keeping in view the impaired financial position of
the bank and the absence of any concrete proposal for merger, the
possibility of revival of the bank was remote, hence, it took the
extreme measure of cancelling the licence in the interest of the
bank's depositors. With the cancellation of its licence and
commencement of liquidation proceedings, the process of paying the
depositors of the bank will be set in motion subject to the terms
and conditions of the Deposit Insurance Scheme.
Consequent to the cancellation of its licence, The Rohe Ashtami
Sahakari Urban Bank Ltd., is prohibited from carrying on ‘banking
business’ as defined in Section 5(b) of the Banking Regulation
Act, 1949 (As applicable to Co-operative Societies).
For any clarifications, depositors may approach:
Shri P.K.Arora
Deputy General Manager
Urban Banks Department
Reserve Bank of India
Mumbai Regional Office
Second Floor, Garment House
Mumbai 400 018
Tel: (022) 2493 5348
Fax: (022) 2493 5495
=================
I N D O N E S I A
=================
INFOASIA TEKNOLOGI: Moody's Junks Rating to Caa1.id; Outlook Neg.
-----------------------------------------------------------------
PT Moody's Indonesia has downgraded PT Infoasia Teknologi Global
Tbk's (Infoasia) national scale corporate family and bond ratings
to Caa1.id from B1.id. The ratings outlook is negative.
This concludes the ratings review initiated on June 23, 2008.
"The ratings downgrade follows Infoasia missing the 15th coupon
payment on its IDR bonds due on September 23," says Joko Widodo,
Moody's lead analyst for the company, adding "The company's
liquidity profile has further deteriorated, such that it remains a
challenge for it to meet those of its financial obligations
maturing in the next 6-12 months."
According to its trustee agreement, the company now has a 14-day
grace period from September 23 to meet the coupon payment before
its bondholders can make any calls, including for early repayment
of the bonds.
However, given its tight balance sheet liquidity, the chance for
making up the coupon payment and meeting other maturing bond
obligations -- including the IDR10 billion in series B bonds due
December this year -- is not high.
The negative outlook reflects Infoasia's tight liquidity profile
and its likelihood of default on its bond repayments in the near
term.
The ratings are unlikely to be upgraded, given the current
negative outlook. The ratings would further be downgraded if
bondholders accelerate the repayment and/or Infoasia fails to meet
its payment obligations.
Infoasia started life as a distributor for IBM Computer Hardware
in 1996 under the name of PT Sejahtera Mandiri. It is now a
telecommunications company, providing network services and system
integration, network provider/internet services, as well as
telecommunications services and voice/data traffic wholesaling
from one country to another. As at June 30, 2008, Infoasia was
owned by PT Infoasia Inti (51.39%), Eurochina Capital Pte Ltd
(15%), Soony Widjaja Wong (0.28%) and the public (33.3%).
Moody's National Scale Ratings are not intended to be globally
comparable. Moody's also emphasizes that its National Scale
Ratings are not opinions on absolute default risk. In this
respect, they are different to the Moody's global scale ratings
which have been assigned to Indonesian or other national
institutions, and which do not carry the ".id" suffix.
PERUSAHAAN GAS: Inks Gas Sales Contract with IP for IDR1.7 Tril.
----------------------------------------------------------------
Last week, PT Perusahaan Gas Negara (PGN) and electricity supplier
PT Indonesia Power (IP) signed a gas sales contract worth
IDR1.7 trillion (US$181.24 million) to help secure power supply in
West Java, Jakarta Post reports.
The report, citing PGN's Corporate Secretary Heri Yusup, says the
deal will allow PGN to supply 30 million cubic feet of gas per day
to IP's power plant in Tanjung Priok, North Jakarta, for the next
three years.
"The gas is coming from South Sumatra and it will be supplied to
Tanjung Priok power plant via the South Sumatra-West Java gas
pipeline," Mr. Heri was cited by the report as saying.
Mr. Heri was also cited by The Post as saying that PGN and IP will
immediately build infrastructure and other facilities to support
the gas distribution activity and that the delivery will begin as
soon as the two firms complete the infrastructure project.
The report noted that PLN expects that the program will reduce its
oil-based fuel consumption by 955,993 kiloliters per year, which
would lighten the 2009 electricity subsidy by IDR5.33 trillion.
About Perusahaan Gas
Headquartered in Jakarta, Indonesia, Perusahaan Gas Negara Tbk--
http://www.pgn.co.id/-- is a gas and energy company that is
comprised of two core businesses: distribution and transmission.
For distribution, PGN signs long-term supply agreements with
upstream operators, which give the company scheduled and
reliable gas volumes and fixed gas prices. These volumes are
subsequently sold to commercial and industrial customers under
gas sales agreements. Under these agreements, sales volumes are
take-or-pay and the gas pricing is fixed and in US dollar. On
the transmission business, PGN ships gas on behalf of the
upstream suppliers under a fixed US dollar tariff with ship-or-
pay volumes agreements. The company is 59.4% owned by the
Government of Indonesia.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 26, 2007, Standard & Poor's Ratings Services raised its
corporate credit ratings on PT Perusahaan Gas Negara (Persero)
Tbk. to 'BB-' from 'B+'. The outlook on the rating is stable.
At the same time, Standard & Poor's raised the rating on the
senior unsecured debt issued by PGN Euro Finance 2003 Ltd.
(guaranteed by PGN) to 'BB-' from 'B+'.
The TCR-AP also reported on Jan. 18, 2007, that Moody's Investors
Service affirmed the Ba2 corporate family rating of PT Perusahaan
Gas Negara (Persero) Tbk. At the same time, Moody's affirmed the
Ba3 debt ratings of PGN Euro Finance 2003 Ltd, which is guaranteed
by PGN. The ratings outlook is stable.
The TCR-AP also noted on June 28, 2006, that Fitch Ratings Agency
placed PT Perusahaan Gas Negara Tbk's Long-term foreign and local
currency Issuer Default Ratings at 'BB-'. Fitch also placed PGN
Euro Finance 2003 Limited's IDR1.12-trillion notes due 2014 and
IDR1.35-trillion notes due 2013 guaranteed by PGN and its
subsidiaries at 'BB-'.
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).
* INDONESIA: Five Mining Companies Pay Portion of Royalties
-----------------------------------------------------------
Jakarta Post reports that as an act of goodwill with Indonesia's
authorities, an advance payment amounting to IDR600 billion (US$65
million) in royalty debts was paid to the government by five
mining companies, namely:
* PT Kideco Jaya Agung -- IDR110 billion;
* PT Kaltim Prima Coal (KPC) -- IDR150 billion;
* PT Arutmin Indonesia -- IDR100 billion;
* PT Berau Coal -- IDR90 billion; and
* PT Adaro -- IDR150 billion.
According to the report, the five coal producers were accused of
withholding the government royalties and the payment was meant to
resolve the dispute, which has gone on for more than three years.
Meanwhile, the report says another company, PT Kendilo Coal
Indonesia, currently in talks with the government over its
obligation to pay its royalty debts, has decided not to respect
the goodwill commitment, as it may discontinue production.
The Post recounts the dispute between the coal producers and the
government escalated in early August when the government banned 14
executives from traveling overseas over allegations the six
companies failed to pay royalties amounting to IDR7 trillion
(US$769 million) between 2001 and 2007.
The mining companies, however, have denied any wrongdoing, saying
the royalties were withheld to compensate for value-added tax
(VAT) refunds owed to them by the government, the report said.
=========
J A P A N
=========
ATARI INC: Stockholders Will Vote on Merger Deal on Oct. 8
----------------------------------------------------------
Atari, Inc., will hold a special meeting of stockholders on
Oct. 8 , 2008 at 10:00 a.m., at Atari's offices at 417 Fifth
Avenue in New York. The purpose of the meeting is:
1. to consider and vote upon a proposal to adopt and approve
the Agreement and Plan of Merger, dated as of April 30,
2008, by and among Atari, Infogrames Entertainment S.A.,
and Irata Acquisition Corp.; and
2. to transact other business as may properly come before the
special meeting or any adjournments or postponements of the
special meeting.
The record date to determine stockholders entitled to vote at the
special meeting is August 22, 2008. Only holders of Atari common
stock at the close of business on the record date are entitled to
notice of, and to vote at, the special meeting.
Atari filed a definitive proxy statement under Regulation 14A of
the Securities Exchange Act of 1934, as amended, relating to a
special meeting of the stockholders. A full-text copy of the
Proxy Statement is available for free at:
http://researcharchives.com/t/s?324b
The stockholder vote required for the adoption of the Merger
Agreement is the affirmative vote of at least a majority of the
Company's outstanding Common Stock entitled to vote on the merger.
Infogrames and its affiliates control 51.6% of the outstanding
voting securities of Atari, which is sufficient to adopt and
approve the merger and the merger agreement.
Atari also delivered to the Securities and Exchange Commission on
Sept. 5, 2008, Amendment No. 3 to the Schedule 13E-3 it filed in
June. The amendment was filed together with:
-- Infogrames Entertainment S.A.,
-- California U.S. Holdings, Inc., and
-- Irata Acquisition Corp.
Schedule 13E-3 is a document filed with the SEC to report going
private transactions. A full-text copy of Atari's amended
Schedule 13E-3 is available for free at:
http://researcharchives.com/t/s?324a
As reported by the Troubled Company Reporter on May 6, 2008,
Atari, Inc., and Infogrames Entertainment entered into a
definitive agreement to merge, in order to:
* bring to a close a period of financial underperformance for
Atari;
* strengthen Atari under Infogrames' new management team; and
* deliver a platform for future growth in the U.S.
About Atari Inc.
New York City-based Atari Inc. is a publisher of video game
software that is distributed throughout the world and a
distributor of video game software in North America. Most of the
products it publishes and distributes are games developed by or
for Infogrames Entertainment S.A., or IESA, a French corporation
listed on Euronext, which owns approximately 51% of its stock.
Atari has offices in Brazil, the United Kingdom and Japan.
Going Concern Doubt
As reported in the Troubled Company Reporter on July 16, 2008,
J.H. Cohn LLP raised substantial doubt about Atari Inc.'s
ability to continue as a going concern after it audited the
company's financial statements for the year ended March 31, 2008.
The auditor pointed to the company's significant operating losses.
ATARI INC: Offering to Buy Options Under 2005 Stock Incentive Plan
------------------------------------------------------------------
Atari, Inc., delivered to the Securities and Exchange Commission a
tender offer statement on Sept. 5, 2008, which was amended on
Sept. 12. Atari wants to purchase for cash all outstanding vested
and unvested options to purchase its common stock granted under
the Atari, Inc. 2005 Stock Incentive Plan.
The company estimates buying options to acquire 165,593 shares of
common stock, each with an exercise price greater than US$1.68,
for US$0.10 per option.
The offer is being made in connection with the proposed merger of
Irata Acquisition Corp., a Delaware corporation and a wholly owned
indirect subsidiary of Infogrames Entertainment S.A., Atari's
majority shareholder, with and into Atari, with Atari continuing
as the surviving corporation in the merger as a wholly owned
indirect subsidiary of Infogrames, and pursuant to which each
outstanding share of Atari common stock will be converted into the
right to receive US$1.68 in cash.
The offer will expire at 5:00 p.m., New York City Time, on October
8, 2008, unless extended or the offer is terminated.
A full-text copy of the Amended Offer to Purchase is available for
free at http://researcharchives.com/t/s?3249
About Atari Inc.
New York City-based Atari Inc. is a publisher of video game
software that is distributed throughout the world and a
distributor of video game software in North America. Most of the
products it publishes and distributes are games developed by or
for Infogrames Entertainment S.A., or IESA, a French corporation
listed on Euronext, which owns approximately 51% of its stock.
Atari has offices in Brazil, the United Kingdom and Japan.
Going Concern Doubt
As reported in the Troubled Company Reporter on July 16, 2008,
J.H. Cohn LLP raised substantial doubt about Atari Inc.'s
ability to continue as a going concern after it audited the
company's financial statements for the year ended March 31, 2008.
The auditor pointed to the company's significant operating losses.
NOMURA HOLDINGS: Shares Rise After Buying Lehman Asia & Europe
--------------------------------------------------------------
Nomura Holdings Inc.'s shares rose in Tokyo on Sept. 24 after
agreeing to pay less than a month's revenue for units of bankrupt
Lehman Brothers Holdings Inc. in Asia and Europe, Takahiko Hyuga
of Bloomberg News reports.
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.
According to Bloomberg News, Nomura gained as much as 5.5% and
traded 1.9% higher at JPY1,458 as of 9:45 a.m. local time on Sept.
24.
Sadeq Sayeed, Nomura special adviser, said the company will pay a
"nominal" amount for Lehman's investment banking and equities
businesses in Europe, Bloomberg News relates. Before that, the
report says, the company agreed to pay US$225 million to take over
Lehman's Asian-Pacific unit.
"It's a positive for Nomura as they can hang their sign throughout
Asia, Europe and the Middle East. Nomura managed to get both name
value and a franchise from Lehman," Bloomberg News cited Makoto
Haga, a Tokyo-based hedge fund manager at Wing Asset Management
Co., as saying.
The same report says the Asia transaction includes 3,000 employees
in Tokyo, Seoul, Beijing, Shanghai, Hong Kong, Taiwan, Thailand,
Singapore, Mumbai, Sydney and Melbourne. The company would also
keep most of Lehman's 2,500 workers in the U.K., Germany,
Switzerland, Spain, the Middle East, Sweden and Russia, the report
adds.
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.
* JAPAN: S&P Sees Little Potential for Improvement on Economy
-------------------------------------------------------------
Japan (AA/Stable/A-1+), a nation seemingly caught in a web of
political stalemate and slowing growth, for now, finds itself
stuck -- with little potential for economic improvement in the
near term. Another recent change in political leadership further
delays structural reforms in Japan, while weakening near-term
growth prospects and political pressures dilute the government's
efforts for fiscal consolidation. In Standard & Poor's Ratings
Services' opinion, Japan's overall growth prospects will be weak
in 2008 and 2009.
"The struggles in parliament come at time when the country's near-
term economic prospects are bleak," S&P's credit analyst
Takahira Ogawa said.
Higher oil and food prices, slower global economic growth, and
declining real disposable income are limiting the growth rate of
Japan's domestic demands, particularly since the second quarter
of 2008.
Japan's GDP growth for fiscal 2008 ending March 31, 2009, is
expected to be 0.7%, which is lower than S&P's earlier forecast
of 1.2%. Higher global oil, commodity, and food prices, combined
with the slower global economy, are adversely affecting Japan's
economy.
=========
K O R E A
=========
HYNIX SEMICONDUCTOR: Cuts Memory Chip Production by 30%
-------------------------------------------------------
Hynix Semiconductor Inc. has decided to cut back production of
memory chips by 30% until the early next year, following Elpida
Memory and Taiwan's Powerchip Semiconductor recently announced
decision, Chosun News reports.
As major semiconductor companies decided to drastically reduce
production, the chronic oversupply problem in the global industry
is expected to improve by the end of this year, the report notes.
According to the report, of five production lines of 200 mm wafers
which lack productivity, Hynix suspended operation of Hynix
Semiconductor Manufacturing America in Eugene, Oregon, in August,
and decided to stop operating three manufacturing lines in Icheon
and Cheongju in Korea and in Wuxi, China.
Hynix Semiconductor Inc. (HSI) of Icheon, Korea --
http://www.hynix.com/-- is a memory semiconductor supplier
offering Dynamic Random Access Memory chips ("DRAMs") and Flash
memory chips to a wide range of established international
customers. The company's shares are traded on the Korea Stock
Exchange, and the Global Depository shares are listed on the
Luxemburg Stock Exchange.
* * *
As reported by the Troubled Company Reporter-Asia pacific on
August 6, 2008, Moody's Investors Service changed to negative from
stable the outlook for both Hynix Semiconductor Inc's Ba2
corporate family rating and senior unsecured bond rating.
===============
M A L A Y S I A
===============
FOREMOST HOLDINGS: Completes Restructuring Scheme
-------------------------------------------------
In a letter dated September 22, 2008, Bursa Malaysia Securities
Berhad has approved Foremost Holdings Berhad's application to be
uplifted from the Amended Practice Note No. 17/2005 (PN17)
criteria.
The company has completed its restructuring scheme when the Rights
Issue with Warrants and the Debt Settlement was completed on
September 4, 2008, upon:
-- the listing of and quotation for the 13,155,000 Rights
Shares and the 15,400,000 new ordinary shares of MYR0.50
each, pursuant to the Debt Settlement on the Second Board of
Bursa Malaysia Securities Berhad; and
-- the admission to the Official List and the listing of and
quotation for the 39,465,000 Warrants on the Second Board of
Bursa Securities.
Foremost Holdings Berhad manufactures and sells automobile
speakers, home audio speakers, general-purpose speakers and
speaker wooden cabinets. The Company is also engaged in the
trading of auto accessories, investment holdings and the
provision of management services. Products are distributed in
Malaysia, Singapore, United Kingdom, Italy, Taiwan, the United
States, other Asian countries, other European countries and
other countries.
HO HUP: Receives Letter of Demand from RHB for MYR2.7 Mil. Payment
------------------------------------------------------------------
Ho Hup Construction Company Bhd has received a Letter of Demand
from Messrs. Che Mokhtar & Ling, acting on behalf of RHB Bank
Berhad (RHB) for the repayment of MYR2,722,301.90 due and owed as
at September 5, 2008. The repayment involves the Revolving Credit
Facility granted to the company.
The Letter of Demand states that the company shall have 14 days
from September 15, 2008, to pay the amount due together with legal
costs of MYR52.50. Failing which, RHB shall exercise their legal
rights without further reference to the company.
Ho Hup Construction Company Bhd is engaged in foundation
engineering, civil engineering, building contracting works and
hire of plant and machinery. The company operates in three
segments: construction, which is engaged in foundation and civil
engineering, building contracting works and engineering,
procurement, construction and commissioning of pipeline system;
property development, which includes the development of
residential and commercial properties, and manufacturing, which
includes manufacturing and distribution of ready-mixed concrete
and concrete spun piles. The company's subsidiaries include Ho
Hup Construction Company (India) Private Limited, Ho Hup
Construction Company Berhad (Madagascar Branch), Ho Hup
Corporation (Mauritius) Ltd, Ho Hup Corporation (South Africa) Pty
Ltd, Ho Hup Equipment Rental Sdn Bhd, Ho Hup Geotechnics Sdn Bhd,
Ho Hup Jaya Sdn Bhd, Mekarani Heights Sdn Bhd, Intermax Resources
Sdn Bhd and Timeless Element Sdn Bhd.
* * *
Messrs. Ernst & Young have expressed a disclaimer opinion in the
company's 2007 audited financial statements. As a result, the
company became an affected listed issuer pursuant to paragraph 2.1
of the PN17/2005. The auditors cited these factors that indicate
the existence of material uncertainties, which may cast
significant doubt on the ability of the group and the company to
continue as a going concerns:
* the group and the company reported a net loss of
MYR46.16 mil. and MYR19.04 mil. respectively during the year
ended December 31, 2007. As of that date, the group's
current liabilities exceeded its current assets by
MYR83.62 mil. In addition, the recognition of the liability
may increase the group's net current liabilities by
MYR43.9 million;
* Should the outcome of the arbitration case between the
company and the Government of Madagascar be unfavorable to
the company, the liquidity of the group and the company would
be adversely affected;
* the Secured Bank Guarantees amounting to MYR43.41 mil. have
been called upon by the Govt. of Madagascar from the
Guarantor Bank following the dismissal of the company's
application for leave to the Federal Courts on July 8, 2008.
On July 25, 2008, the Guarantor Bank has paid MYR43.41 mil.
to the Govt. of Madagascar. No provision has been made for
the amounts of bank guarantees demanded by the Govt. of
Madagascar but the amounts have been disclosed as Contingent
Liabilities. The non-recognition of the liability arising
from the demand of bank guarantees by the Govt. of Madagascar
is not in accordance with Financial Reporting Standards in
Malaysia. The auditors were unable to perform sufficient
appropriate audit procedures to ascertain whether the
corresponding debit represents a recoverable amount or an
expense in the income statement.
HO HUP: Receives Arbitral Award for MYR11.53 Million
----------------------------------------------------
Ho Hup Construction Company Berhad has received an Arbitral Award
amounting to MYR11,536,660.95, before the Regional Centre for
Arbitration Kuala Lumpur, in respect of the Arbitration between
the company and:
* Revolutionary Technology Holdings Sdn Bhd
* Seri Siantan Sdn Bhd; and
* Syarikat Pembinaan Al-Joffrie Sdn Bhd
The Arbitrator, Ong Hock Tek, also ordered that the money will be
paid to Ho Hup within 30 days failing which, interest would
accrue. In addition costs have also been awarded in favor of Ho
Hup.
Ho Hup has instructed its lawyers to pursue the collection of the
Award.
Ho Hup Construction Company Bhd is engaged in foundation
engineering, civil engineering, building contracting works and
hire of plant and machinery. The company operates in three
segments: construction, which is engaged in foundation and civil
engineering, building contracting works and engineering,
procurement, construction and commissioning of pipeline system;
property development, which includes the development of
residential and commercial properties, and manufacturing, which
includes manufacturing and distribution of ready-mixed concrete
and concrete spun piles. The company's subsidiaries include Ho
Hup Construction Company (India) Private Limited, Ho Hup
Construction Company Berhad (Madagascar Branch), Ho Hup
Corporation (Mauritius) Ltd, Ho Hup Corporation (South Africa) Pty
Ltd, Ho Hup Equipment Rental Sdn Bhd, Ho Hup Geotechnics Sdn Bhd,
Ho Hup Jaya Sdn Bhd, Mekarani Heights Sdn Bhd, Intermax Resources
Sdn Bhd and Timeless Element Sdn Bhd.
* * *
Messrs. Ernst & Young have expressed a disclaimer opinion in the
company's 2007 audited financial statements. As a result, the
company became an affected listed issuer pursuant to paragraph 2.1
of the PN17/2005. The auditors cited these factors that indicate
the existence of material uncertainties, which may cast
significant doubt on the ability of the group and the company to
continue as a going concerns:
* the group and the company reported a net loss of
MYR46.16 mil. and MYR19.04 mil. respectively during the year
ended December 31, 2007. As of that date, the group's
current liabilities exceeded its current assets by
MYR83.62 mil. In addition, the recognition of the liability
may increase the group's net current liabilities by
MYR43.9 million;
* Should the outcome of the arbitration case between the
company and the Government of Madagascar be unfavorable to
the company, the liquidity of the group and the company would
be adversely affected;
* the Secured Bank Guarantees amounting to MYR43.41 mil. have
been called upon by the Govt. of Madagascar from the
Guarantor Bank following the dismissal of the company's
application for leave to the Federal Courts on July 8, 2008.
On July 25, 2008, the Guarantor Bank has paid MYR43.41 mil.
to the Govt. of Madagascar. No provision has been made for
the amounts of bank guarantees demanded by the Govt. of
Madagascar but the amounts have been disclosed as Contingent
Liabilities. The non-recognition of the liability arising
from the demand of bank guarantees by the Govt. of Madagascar
is not in accordance with Financial Reporting Standards in
Malaysia. The auditors were unable to perform sufficient
appropriate audit procedures to ascertain whether the
corresponding debit represents a recoverable amount or an
expense in the income statement.
NIKKO: Receives Summons from SCA for MYR49,174 of Claims
--------------------------------------------------------
Nikko Electronics Bhd. has been served a Summons dated Sept. 16,
2008 from Messrs Raja, Darryl & Loh, Advocates and Solicitors
acting for SCA Packaging Malaysia (Penang) Sdn Bhd (SCA) claiming
MYR49,174.89 purportedly being monies due and owed to SCA for
goods sold and delivered to Nikko.
Nikko is seeking the necessary legal advise to resolve this
matter.
About Nikko
Nikko Electronics Berhad manufactures sells radio controlled
toys, electronic and toy related products. The Group operates
in Malaysia, United States of America, France, Japan, United
Kingdom, Netherlands, Italy, Norway, Hong Kong, Denmark,
Austria, Spain, Australia and other countries.
* * *
On June 30, 2008, Nikko Electronics Bhd. was classified as an
affected listed issuer under Practice Note 1/2001 (PN1/2001) of
the Listing Requirements of Bursa Malaysia Securities Berhad
because it had defaulted on a bankers' acceptance facility due
on June 27, 2008, for an amount of MYR1,457,084 due to Malayan
Banking Berhad. Nikko is unable to repay the liability to the
bank due to the difficult cash flow position as a result of the
contraction in the remote-control toys industry.
The company had been loss-making and its ventures to manufacture
new products had also failed to make a profitable contribution
to it. Nikko will also be suspending its business activities to
prevent incurring further losses.
====================
N E W Z E A L A N D
====================
AUSTRAL PACIFIC: Unveils Strategic Alternatives Review
------------------------------------------------------
Austral Pacific Energy Ltd. announces that it has decided to
initiate a strategic alternatives review of its business.
Austral CEO and President Thompson Jewell said, "In light of the
low share price, Austral Pacific has initiated a strategic review
to consider all options available to the company to maximise value
for its shareholders".
In conjunction with the strategic review, Austral Pacific has
appointed Australasian investment banking firm McDouall Stuart as
the company's Financial Advisor.
The strategic review will be comprehensive, and will consider new
capital investments as well as third-party approaches for asset
sales and/or merger proposals.
The company said that no decision on any particular alternative
has been reached at this time and there can be no assurance that
the process will result in any change in the company's current
plans to seek additional capital in order to refinance its
existing credit facility or that the company will pursue any
particular transaction.
Austral said it does not intend to make any further announcement
regarding the process unless and until its board of directors has
approved a specific transaction or other course of action or
otherwise deems disclosure of developments is appropriate.
About Austral Pacific
Austral Pacific Energy Ltd. -- http://www.austral-pacific.com/--
is a limited liability company incorporated in British Columbia
under the Business Corporations Act (British Columbia). The
company is domiciled in New Zealand. The company is primarily
engaged in the acquisition, exploration, appraisal and development
and production from oil and gas properties in New Zealand (and
until the end of May 2008, Papua New Guinea).
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
July 10, 2008, KPMG LLP raised substantial doubt about Austral
Pacific's ability to continue as a going concern after it audited
the company's financial statements for the year ended
Dec. 31, 2007.
The auditor reported that the company has suffered recurring
losses from operations, has a working capital deficit and a net
capital deficiency and has also been unable to generate net cash
from operating activities. In addition, the company is in breach
of several covenants relating to its bank loan facility.
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.
E-PLUMBING: Liquidators Fix September 29 As Claims Bar Date
-----------------------------------------------------------
In accordance with section 241 of the Companies Act 1993, the
shareholders of E-Plumbing & Hardware Limited appointed Peter
Charles Chatfield, chartered accountant, and Stephen Rex Tietjens,
both of Auckland, as liquidators on Aug. 28, 2008.
The liquidators set Sept. 29, 2008, as the last day for creditors
to file their proofs of debt.
The liquidators can be reached at:
Accru Smith Chilcott Limited
Chartered Accountants
Level 5, Auckland Finance Building
57 Fort Street, Auckland 1010
Telephone: (09) 379 8035
Facsimile: (09) 307 8892
BURKE DRAINAGE: Proofs of Debt Due on September 30
--------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
shareholders of Burke Drainage Limited resolved that the company
be liquidated and that Murray G. Allott, chartered accountant of
Christchurch, be appointed as liquidator.
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:
Murray G. Allott
111 Bealey Avenue
Christchurch 8013
Telephone: (03) 365 1028
Facsimile: (03) 365 6400
Email: murray@profitco.co.nz
FRANCELLA LIMITED: Proofs of Debt Due on September 30
-----------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, the
shareholders of Francella Limited fka C & R Equipment Limited
resolved that the company be liquidated and that Stephen John
Tubbs, chartered accountant, and
Colin Anthony Gower, insolvency practitioner, both of
Christchurch, be appointed as liquidators.
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
HIGHBROOK LAND: Parsons and Kenealy Appointed as Liquidators
------------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Dennis
Clifford Parsons and Katherine Louise Kenealy were appointed as
liquidators of Highbrook Land Co Limited on Aug. 25, 2008.
The liquidators can be reached at:
D. C. Parsons
Indepth Forensic Limited
PO Box 278
Hamilton, New Zealand
Telephone: (07) 957 8674
Website: www.indepth.co.nz
JOHNSTON & MCKEOWN: Parsons and Kenealy Appointed as Liquidators
----------------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Dennis
Clifford Parsons and Katherine Louise Kenealy were appointed as
liquidators of Johnston & McKeown Limited on Aug. 25, 2008.
The liquidators can be reached at:
D. C. Parsons
Indepth Forensic Limited
PO Box 278
Hamilton, New Zealand
Telephone: (07) 957 8674
Website: www.indepth.co.nz
LOMBARD GROUP: Unit Unable to Pay Brokers Due to Loan Defaults
--------------------------------------------------------------
Lombard Group Limited’s subsidiary, United Home Mortgages, is
losing out on trail commission payments as more mortgages it
arranged head into default, The National Business Review reports.
In a newsletter cited by the Business Review, United Home notes
that a significant number of loans are in arrears and that it has
been unable to pay brokers their portion of trail income on those
loans.
United Home said its recoveries team are working hard to manage
delinquent loans and bring them back into line saying this is a
frustrating and difficult task as you can imagine.
According to the Business Review, United Home’s NZ$500 million
loan business also includes Tasman Mortgage Group, which Lombard
Group bought from Blue Chip in May 2007.
Lombard Group bought what was then called United Home Loans from
the Hanover Group at the end of last year, the report says.
United is currently Lombard Group’s only surviving business after
Lombard Finance went into receivership earlier this year, the
report notes.
About Lombard Group
Headquartered in Wellington, New Zealand, Lombard Group Limited
(NZE:LOM) -- http://www.lombardgroup.co.nz/-- is primarily
engaged in the business of investment in a portfolio of
mortgage-secured loan advances and other advances. This is
carried out through the Company's principal subsidiary, Lombard
Finance & Investments Limited. Lombard Finance provides
property finance to selected customers. Lombard Group's lending
within the property sector is secured by property and includes
lending for residential and commercial property investment,
property development, bridging loans and mezzanine finance. The
company’s subsidiary, Lombard Asset Finance Limited, provides
loans to business customers, including hire purchase, lease
finance and general business funding. In March 2008, the
company’s wholly owned subsidiary, Lombard Mortgages Limited,
acquired the remaining 30% interest in Tasman Mortgages Limited.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
July 10, 2008, Lombard Group said that its financial performance
for the year ended March 31, 2008, has been dramatically affected
by the receivership of the Group's significant subsidiary, Lombard
Finance & Investments Limited, which occurred on April 10, 2008.
While the audited Group result is a loss of NZ$3.26 million, the
Board recognizes that does not reflect the full impact of the
receivership.
LS PACIFIC: Liquidators Set October 2 as Claims Bar Date
--------------------------------------------------------
Pursuant to Section 241(2)(a) of the Companies Act 1993,
Michael John Turner and Stephen Alan Dunbar, chartered accountants
of Polson Higgs, were appointed as liquidators of LS Pacific
Limited on Aug. 27, 2008.
The liquidators set Oct. 2, 2008, as the last day for creditors to
file their proofs of debt.
The liquidators can be reached at:
Su Jiahua
139 Moray Place
Dunedin
Telephone: (03) 479 4823
MCC CONSTRUCTION: Commences Liquidation Proceedings
---------------------------------------------------
The High Court at Napier held a hearing on Sept. 18, 2008,
to consider an application putting MCC Construction Limited into
liquidation.
The application was filed on July 25, 2008, by Cowley
Refrigeration Limited.
The plaintiff's address for service is at:
Keesing McLeod
5th Floor, Westfield Tower
45 Knights Road
Lower Hutt
J. A. Steele is the plaintiff's solicitor.
SEVENSEAS MARINE: Parsons and Kenealy Appointed as Liquidators
--------------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Dennis
Clifford Parsons and Katherine Louise Kenealy were appointed as
liquidators of Sevenseas Marine Limited on Aug. 25, 2008.
The liquidators can be reached at:
D. C. Parsons
Indepth Forensic Limited
PO Box 278
Hamilton, New Zealand
Telephone: (07) 957 8674
Website: www.indepth.co.nz
SIGNGRAPHIX LIMITED: Wind-Up Petition Hearing Set for October 13
----------------------------------------------------------------
The High Court at Dunedin will hold a hearing on Oct. 13, 2008, at
10:00 a.m., to consider putting Signgraphix Limited into
liquidation.
The application was filed on July 28, 2008, by 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.
THE P.C.: Parsons and Kenealy Appointed as Liquidators
------------------------------------------------------
Pursuant to Section 255(2)(a) of the Companies Act 1993, Dennis
Clifford Parsons and Katherine Louise Kenealy were appointed as
liquidators of The P.C. Company Limited on Aug. 25, 2008.
The liquidators can be reached at:
D. C. Parsons
Indepth Forensic Limited
PO Box 278
Hamilton, New Zealand
Telephone: (07) 957 8674
Website: www.indepth.co.nz
===============
P A K I S T A N
===============
* PAKISTAN: Moody's Shifts B2 Bond Rating Outlook to Negative
-------------------------------------------------------------
Moody's Investors Service has changed the outlook on the Pakistani
government's B2 bond ratings to negative from stable.
At the same time, Moody's has lowered the outlook on its B3
foreign currency bank deposit ceiling to negative. Meanwhile, the
outlook on the Ba3 foreign currency bond ceiling remains negative.
The rating actions were prompted by a substantial erosion in the
country's external liquidity position, and which is not likely to
be adequately reversed by prospective external assistance or
ongoing efforts at macro-economic stabilization.
The negative outlook on the government's bond ratings reflects, in
particular, a worsening in access to foreign currency, raising a
heightened prospect of arrears and missed repayments.
"After the election of President Zardari, domestic political
stability may improve somewhat, but underlying tensions will be
difficult to remedy", says Aninda Mitra, Moody's sovereign analyst
for Pakistan. "Moreover, economic stabilization measures are
expected to remain under pressure from deteriorating socio-
economic conditions as well as a worsening external environment,
and key macroeconomic objectives may not be met."
"Anticipated foreign assistance from official creditors may not
prove timely or sufficient to avert near-term financing problems,
while considerable delays in disbursements have already
contributed to a greater-than-expected erosion of Pakistan's
foreign-exchange reserves," says Mr. Mitra.
"As a result, it remains unclear how Pakistan would rebuild its
external liquidity in the medium-term, unless either considerably
larger amounts of foreign assistance were disbursed, or foreign
investor sentiment improved sharply."
Mitra emphasizes that the deterioration in the credit outlook also
reflected the lack of a credible medium-term macro-economic
framework that could sustainably reduce the country's imbalances
and reassure investors.
"Moreover, the likelihood of further domestic political tumult
amidst a growing tide of religious extremism and high inflation
could slow structural reform and fundamentally weaken much-needed
capacity to generate higher savings, tax revenue and foreign
exchange," adds Mr. Mitra, who is based in Singapore.
"However, if the depletion in unencumbered foreign exchange
reserves were to reverse, with reserves rising substantially
towards previously high levels, the outlook could be restored to
stable," says Mr. Mitra. "This would also have to be supported by
sustained improvements in Pakistan's current account balance and
net capital inflows over the next year or so."
"Pakistan's B2 rating also already reflects a recent weakening of
the government's finances, so evidence of a structural
improvement, including a reversal of deficit monetization, and a
substantial deceleration of inflation could support the shift to a
stable outlook," he adds.
"However, the balance of short-term and now even medium-term
economic and external financial risks confronting the Pakistani
government has tilted to the downside, prompting the negative
outlook," he concludes.
=====================
P H I L I P P I N E S
=====================
LEHMAN BROTHERS: 8 SPVs in Philippines Owe Php3.6BB from 2 Banks
----------------------------------------------------------------
Citing top banking sources, Philippine Daily Inquirer reports that
Lehman Brothers Holdings Inc. has at least eight Philippine
special purpose vehicles (SPVs) that has taken out soured loans
and foreclosed property at a steep discount from various
Philippine banks.
PDI noted that Lehman borrowed about Php3.6 billion from two banks
-- Metropolitan Bank and Trust Co. (Metrobank) and the local
branch of UK-based Standard Chartered Bank -- to pay for the
soured assets.
The eight SPV's were identified as:
* Philippine Investment One;
* Philippine Investment Two;
* Argoman Real Estate Investments Inc.;
* Galli Poli I Real;
* Galli Poli Real;
* Lobos Real Estate;
* Saturn Investment; and
* Teak Real Investment.
According to the report, the eight SPVs, whose underlying assets
local creditors are now running after, were not included in the
petition for protection against creditors filed by Lehman in the
US when it recently declared bankruptcy. They contain the assets
sold by various banks to Lehman during the past four years.
"The banks with loans to SPVs can recover some of their exposure
by simply foreclosing on the underlying assets," an investment
banker was quoted by PDI as saying.
As reported by the Troubled Company Reporter-Asia Pacific on
Sept. 24, 2008, Metrobank has filed petitions for Philippine
Investment One and Philippine Investment Two to be placed under
corporate rehabilitation to ensure that the bank can recover its
investments.
===========
T A I W A N
===========
MEGA FIN: Expects Record Low Profit of T$5-6BB for 2008 on Lehman
-----------------------------------------------------------------
Taiwan's Mega Financial Holding Co. Ltd. expects to post a record
low net profit of NT$5-6 billion for 2008, due to the company's
exposure to bankrupt Lehman Brothes Holdings Inc., Faith Hung of
Reuters reports, citing Simon Ozeng, first executive vice
president.
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.
According to Reuters, the company has about US$200 million in
exposure to Lehman Brothers, about a third of which it has written
off with more to potentially follow by year end. The company's
unit, Mega International Commercial Bank Co., has a US$115.7
million exposure to notes related to Lehman Brothers, Dow Jones
Newswires relates, citing the parent company.
Mega Financial Holding's exposure is also coupled with a NT$7
billion (US$219 million)write-off earlier this year related to
U.S. subprime products, Reuters says. Mr. Ozeng, Reuters relates,
said Mega Financial has already written down NT$1.9 billion (US$59
million) against its investment in Lehman's bonds.
Moreover, Reuters points out that Mr. Ozeng said the company had
another US$138 million in exposure to the troubled U.S. firm in
the form of combined investments by its banking and brokerage
units that it planned to divest later this year. It was not yet
clear how much of that amount would have to be written off, he
said.
The report says based on disclosures as of September 23, Mega has
the most exposure to Lehman among Taiwan's financial holding
companies. Filings made to the stock exchange last week showed
that Shin Kong Financial had the second biggest exposure, at US$80
million, followed by Taishin Financial at US$56 million.
According to Dow Jones, Taiwan's Financial Supervisory Commission
said Monday that Taiwan's banks, insurers, fund management firms
and brokerages have invested roughly NT$40 billion in paper
related to the collapsed U.S. bank.
About Mega Financial
Mega Financial Holding Co., Ltd. -- http://www.megaholdings.com.tw
-- is principally engaged in the provision of financial services
through its eight subsidiaries. The company's products and
services include banking, comprising deposits, loans, guarantees,
foreign exchange, safe deposit boxes, credit cards, Internet
banking and venture capital investment; securities, such as
brokerage, underwriting and financing of domestic and foreign
securities, as well as trading services of futures; bills and
bonds, such as underwriting, brokerage and guarantee services of
short-term bills and proprietary trading of corporate bonds and
government bonds; property and casualty insurance, such as fire,
car, aviation, fishing vessel, engineering, marine hull and marine
insurance; securities investment trusts, such as issuance of
beneficiary certificates and management of investment funds; asset
management comprising evaluation, auction and management services;
life insurance agency business, and investments on enterprises.
===============
X X X X X X X X
===============
* Moody's Sees Negative Outlook for Global Pharmaceutical Sector
----------------------------------------------------------------
Moody's Investors Service commented that the outlook for the
global pharmaceutical sector is negative. This outlook expresses
Moody's expectations for the fundamental credit conditions in the
industry over the next 12 to 18 months.
Moody's view reflects significant patent expirations in the years
2010 through 2013, a tougher regulatory climate resulting in a
slower rate of new product approvals, as well as global cost
containment efforts that may target pharmaceutical pricing or
access. In addition, event risk related to product safety, patent
challenges from generic manufacturers and other litigation issues
remains somewhat high. Moody's anticipates that global
consolidation is likely to continue, pressuring credit ratings for
companies that opt to substantially increase financial leverage to
pursue acquisitions. Moody's expects continued global interest in
the acquisition of U.S.-based drug companies, as well as further
investment in emerging market economies.
In spite of business development strategies, Moody's expects
growth rates for branded drug companies to moderate, especially as
large patent expirations occur. The growth outlook for
biotechnology companies is stronger because generic threats are
less imminent. Generic drug companies also face good growth
prospects globally, although the segment of the industry faces
continuing pricing pressure, and even greater likelihood of global
consolidation, potentially debt-financed.
Helping to offset these risks, the pharmaceutical industry still
benefits from favorable demographic trends, supporting the
increasing utilization of pharmaceutical products. In addition,
the pharmaceutical industry should remain relatively less exposed
to economic weakness in the U.S. and Europe compared to many other
industries. If economic pressures significantly persist or
spread, however, healthcare cost containment efforts are likely to
intensify.
Branded pharmaceutical companies best able to maintain high credit
ratings will be those with significant product and geographic
diversity, a healthy relationship between patent expirations and
pipeline strength, and highly liquid balance sheets. Currently,
balance sheets tend to be strong for U.S.-based and Japanese-based
pharmaceutical companies, whereas balance sheets of some European
companies have somewhat weakened following recent acquisitions.
In general, however, U.S.-based pharmaceutical companies have less
revenue diversity and face larger patent expirations over the next
several years.
* Moody's: Global Paper Product Industry Still Holds Neg. Outlook
-----------------------------------------------------------------
The global paper and forest products industry continues to have a
negative outlook as negative credit trends in North America and
Europe are expected to outweigh the relatively stable credit
performance anticipated for both Asia-Pacific and Latin American
issuers, says Moody's Investors Service.
"Declining demand and volatile input costs are the main concerns
underlying our continued negative outlook for the global paper and
forest products industry," says Moody's VP/Senior Analyst Ed
Sustar.
This trend is most pronounced in North America, Europe and Japan,
where the appetite for most paper and forest products continues to
decline and companies face volatile energy, chemical,
transportation and fiber costs, says Moody's.
However, credit performance is expected to remain positive for
Latin American and many Asian producers, as the emerging middle
class and increasing literacy rates in these regions spur demand
for paper, notes the analyst.
With no sign of a bottom in the US housing market, makers of wood-
based building products remain under pressure. "They are
responding to the adverse market environment by preserving
liquidity through scaled back capital expenditure programs and
dividend reductions," says Sustar.
In addition, the economic slowdown in mature markets and the
migration to electronic media from paper has also led to a decline
in paper demand.
Thus, the availability and cost of fiber continues to shift
production capacity to regions that can supply and process it at
the lowest cost, says Moody's.
Overall, credit quality is expected to remain under pressure in
the North American paper and forest products sector as companies
continue to cope with volatile fiber, energy and transportation
costs and declining product demand, says the analyst. However,
some issuers may benefit from the flow through of recent price
increases and the moderation of recycled fiber and energy costs.
* S&P Drops Ratings on Asia-Pacific Synthetic CDO Transactions
--------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its ratings on 74
tranches relating to 60 Asia-Pacific (ex-Japan) synthetic CDO
transactions. Ten of the downgraded CDO tranches were also
placed on CreditWatch with negative implications. At the same
time, ratings on four other tranches relating to Asia-Pacific
(ex-Japan) synthetic CDO transactions were placed on CreditWatch
with negative implications only.
The downgrades and CreditWatch placements follow a review of Asia-
Pacific (ex-Japan) synthetic CDO tranches that had already
been placed on CreditWatch. The review also included synthetic
CDO tranches with exposure to any one of these entities and their
subsidiaries: Fannie Mae (NR), Freddie Mac (NR), 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), and
Tembec Industries Inc. (Tembec; NR/--/--).
The rating actions reflect the impact on the relevant CDO
portfolios of several events that have occurred since the start
of September 2008: the placement of Fannie Mae and Freddie Mac
under regulatory conservatorship; Lehman's Chapter 11 bankruptcy
filing; Tembec's Chapter 15 bankruptcy filing; and negative rating
migration that reflects, but is not limited to, the
downgrades and CreditWatch placements of AIG, BofA, and WAMU.
Ratings Lowered:
Transaction Rationg To Rating From
----------------------------------------------------------------
AROSA Funding Ltd.
Series 2006-9 CCC+ BBB-
Corsair (Jersey) No.2 Ltd.
Series 69 BB+ BBB-
Corsair (Jersey) No.2 Ltd.
Series 70 B+ BBB-
Corsair (Jersey) No.2 Ltd.
Series 87 CCC+ BBB-
ELM B.V. Series 99 B+ BBB-/Watch Neg
Mahogany Capital Ltd.
Series II BB+pNRi/Watch Neg BBB-pNRi/WatchNeg
Morgan Stanley Managed ACES SPC
Series 2006-7 Class IIA BB BBB+
Motif Finance (Ireland) PLC
Series 2007-5 BB- BBB/Watch Neg
Obelisk Trust 2006-1 Eden BB+ BBB/Watch Neg
Omega Capital Investments PLC due Dec 2012
Series 49 Class D5 BB- BBB-
Omega Capital Investments PLC due Dec 2014
Series 49 Class D-10 BB BBB-
Omega Capital Investments PLC due Dec 2014
Series 49 Class D-7 BB BBB-
Omega Capital Investments PLC due Dec 2014
Series 49 Class E-7 B BB-
Saphir Finance PLC
Series 2006-5 BB+pNRi/Watch Neg BBB-pNRi/WatchNeg
Sceptre Capital B.V.
Series 2007-4 BB- BBB-
Script Securitisation Ltd. Constellation
Series 2007-1 BBpNRi BBB-pNRi
*********
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 ***