/raid1/www/Hosts/bankrupt/TCRAP_Public/081118.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, November 18, 2008, Vol. 11, No. 229
Headlines
A U S T R A L I A
ACN 094 058 250 ET AL: Commences Liquidation Proceedings
BABCOCK & BROWN: U.S. Fund Asked to Pay Wachovia Loan Early
BC GAS: Placed Under Voluntary Liquidation
CHT PROPERTY: Members and Creditors Receive Wind-Up Report
DAVIDSONS ENVIRONMENTAL: Members Receive Wind-Up Report
DIBSENTA PTY: Members and Creditors Hear Wind-Up Report
FREIGHTLINK: Sale Fails, Appoints Voluntary Administrator
IRENE SIMPSON: Members Receive Wind-Up Report
JAMES HARDIE: Q2 Profit Drops 26% on Weak U.S. Housing Market
JIMI G PTY: Members and Creditors Receive Wind-Up Report
KEYLINK TECHNOLOGY: Members and Creditors Hear Wind-Up Report
MIKE'S ELECTRICS: Members and Creditors to Meet on December 12
TOP STATION: Placed Under Voluntary Liquidation
VALLEY RIDGE: Placed Under Voluntary Liquidation
VRE PTY: Placed Under Voluntary Liquidation
WALKER GOLF ET AL: Members Receive Wind-Up Report
WHITSEND PTY: Members and Creditors Receive Wind-Up Report
WORKPLACE RELATIONS: Placed Under Voluntary Liquidation
H O N G K O N G
AZIATECH ET AL: Members' Final Meeting Set for December 14
BASF CONSTRUCTION ET AL: Appoints Yan and Marcus as Liquidators
CHINA FAIR: Placed Under Voluntary Liquidation
CITIC GROUP: S&P Puts Ratings on Watch With Negative Implications
CITIC PACIFIC: Moody's Alters Rating Review to Direction Uncertain
CITIC PACIFIC: S&P Changes 'BB' Rating Outlook to Developing
COACTIVE TECHNOLOGIES: S&P Withdraws Low-B Public Ratings
COLLINS & LEAHY ET AL: Seng and Lo Cease to Act as Liquidators
COMMERZ SECURITIES: Tang and Man Quit as Liquidators
CORDIALITY LABEL: Placed Under Voluntary Liquidation
IGAI COMPANY: Commences Liquidation Proceedings
LEGG MASON ET AL: Members' Final Meeting Set for December 19
REDCHIP INTERNATIONAL: Creditors' Meeting Set for November 26
STAGE CAFE: Placed Under Voluntary Liquidation
I N D I A
ALCATEL-LUCENT: To Expand Operations in India
GINNI FILAMENTS: Fitch Long-Term Issuer Rating Tumbles to 'D'
* INDIA: Kingfisher's Mallya Calls for Foreign Tie-Ups to Survive
J A P A N
NOMURA HOLDINGS: Plans to Eliminate Jobs Among Ex-Lehman Staff
* S&P Puts Ratings on 20 Japanese CDO Deals on Negative Watch
M A L A Y S I A
PUTERA CAPITAL: Bourse to De-list Securities on November 26
TRIPLC BERHAD: Bourse Extends Regularization Plans to December 31
N E W Z E A L A N D
AUTO SALON: Faces CIR's Wind-Up Petition
BRENDO ENTERPRISES: Court Hears Wind-Up Petition
DISPENSING SYSTEMS: Court Hears Wind-Up Petition
GHCC DEVELOPMENT: Subject to Warren and Mahoney's Wind-Up Petition
INNOVATIVE PROJECTS: Faces Eliot Sinclair's Wind-Up Petition
ITI CONTRACTING: Subject to CIR's Wind-Up Petition
NORTH 2 SOUTH: Subject to CIR's Wind-Up Petition
PLUS SMS: Former CEO Files Legal Action in U.S. Court
PREMIER FLOORING: Court Hears Wind-Up Petition
SWASHBUCKLERS: Court to Hear Wind-Up Petition on Dec. 17
TRYPHENA INVESTMENTS: Wind-Up Petition Hearing Set for Dec. 17
WAIKATO CARPARK: Faces Brookfields' Wind-Up Petition
P A K I S T A N
PAKISTAN MOBILE: S&P Downgrades Corporate Credit Rating to 'B-'
* PAKISTAN: Obtains US$7.6 Billion Loan From IMF
* PAKISTAN: S&P Junks Long-Term Currency Ratings
P H I L I P P I N E S
FIRST GEN: Third Quarter Profit Falls 64.1%
FIRST GEN: Obtains US$544 Mil. Funding to Refinance Debts
* PHILIPPINES: Government Adjusts Growth Targets, BSP Says
* PHILIPPINES: Bank Lending Continues to Expand in September
S I N G A P O R E
* SINGAPORE: Exports Fell 15% in October Amid Slower Global Demand
S R I L A N K A
SEYLAN MERCHANT: Fitch Holds 'BB+' National Long-Term Rating
TRADE AND FINANCE: Fitch Keeps 'BB+' National Long-Term Rating
T A I W A N
JIH SUN: Fitch Changes Rating Outlook to Stable From Negative
TAISHIN CBO: Fitch Downgrades Ratings on Commercial Papers
WATERLAND FINANCIAL: Fitch Affirms All Ratings; Outlook Negative
X X X X X X X X
* BOND PRICING: For the Week November 10 to November 14, 2008
- - - - -
=================
A U S T R A L I A
=================
ACN 094 058 250 ET AL: Commences Liquidation Proceedings
--------------------------------------------------------
During a general meeting held on September 17, 2008, the members
of these companies agreed to voluntarily wind up the operations
of:
-- ACN 094 058 250 Pty Limited formerly called Yourhealth Group
Pty Limited;
-- ACN 097 253 908 Pty Limited formerly called Yourhealth Manly
Pty Limited;
-- ACN 101 519 877 Pty Limited formerly called Yourhealth
Camberwell Pty Limited; and
-- ACN 101 676 402 Pty Limited formerly called Yourhealth
Carina Pty Limited.
The companies' liquidator is:
John Morgan
Rodgers Reidy Chartered Accountants
333 George Street, Level 8
Sydney NSW 2000
BABCOCK & BROWN: U.S. Fund Asked to Pay Wachovia Loan Early
-----------------------------------------------------------
Babcock & Brown Limited's special purpose vehicle in the U.S., HTM
Fund 1 Subsidiary A LLC, received Friday, November 14, a notice
of acceleration under a debt facility provided by Wachovia Bank,
as a result of HTM's decision not to provide the additional
collateral requested by Wachovia Bank. The special purpose
vehicle holds U.S. loan asset investments on behalf of the Babcock
& Brown and GPT joint venture.
Discussions between the parties are ongoing, however, if these
talks are not resolved satisfactorily the joint venture may suffer
loss upon the liquidation of these loan assets by Wachovia Bank,
Babcock & Brown Limited said in a press statement.
The total amount of the Wachovia Bank loan is approximately US$112
million. It is a non-recourse loan and therefore the maximum
Babcock & Brown and GPT joint venture exposure as a result of this
action is limited to the equity invested in HTM by the Babcock &
Brown and GPT joint venture plus retained earnings and amounts to
approximately US$82 million. This represents approximately 4.0%
of the Babcock & Brown and GPT joint venture ordinary & preferred
equity (in AU$ terms).
Due to the requirement of the joint venture agreement for ordinary
equity to bear first loss across the portfolio, Babcock & Brown's
maximum exposure to any potential loss will be equivalent to 50%
of the joint venture's exposure or approximately US$41 million.
The book value of Babcock & Brown's net equity investment in the
joint venture with GPT stood at AU$169 million as of June 30,
2008.
About GPT
GPT Group (ASX:GPT)-- http://www.gpt.com.au -- is an Australia-
based company. Its segments comprise Retail, Office, Industrial,
Hotel & Tourism, Seniors Housing, Funds Management, Joint Venture
and Corporate. Its Retail segment includes regional, sub-regional
and community shopping centers, Homemaker City (bulky goods)
centers, retail re-developments and new retail developments.
Office segment includes office space with associated retail space
and office developments. Industrial segment includes traditional
industrial and business park assets. Hotel & Tourism segment
includes nature-based resorts and hotel assets. Seniors Housing
segment includes investments in a portfolio of established seniors
housing assets in the United States of America. Funds Management
segment includes asset and funds management in Australia by GPT
Funds Management Limited. Joint Venture segment includes
investments in the Babcock & Brown joint venture. The company
comprises General Property Trust and GPT Management Holdings
Limited.
About Babcock & Brown
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
November 12, 2008, Standard & Poor's Ratings Services lowered its
long-term issuer credit rating on Australia-based Babcock & Brown
International Pty Ltd. to 'BB-' from 'BB', reflecting the impact
of the financial market dislocation on the pace of asset sales
required for BBIPL's debt reduction plans. At the same time, the
'BB-' long-term and 'B' short-term ratings were placed on
CreditWatch with negative implications.
BC GAS: Placed Under Voluntary Liquidation
------------------------------------------
At an extraordinary general meeting held on September 18, 2008,
the members of BC Gas Installations Pty Limited resolved to
voluntarily liquidate the company's business.
The company's liquidator is:
Martin Green
Ferrier Green Krejci Silvia Chartered Accountants
1 Castlereagh Street, Level 13
Sydney NSW 2000
CHT PROPERTY: Members and Creditors Receive Wind-Up Report
----------------------------------------------------------
The members and creditors of CHT Property Pty Limited met Oct. 7,
2008, and heard the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Danny Vrkic
Jirsch Sutherland & Co - Wollongong
76 Market Street, Level 1
Wollongong, NSW 2500
Telephone:(02) 4225 2545
Facsimile:(02) 4225 2546
DAVIDSONS ENVIRONMENTAL: Members Receive Wind-Up Report
-------------------------------------------------------
The members of Davidsons Environmental Enterprises Pty Limited met
on November 7, 2008, and heard the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Ian Davidson
1 Sailors Bay Road
Willoughby NSW 2068
DIBSENTA PTY: Members and Creditors Hear Wind-Up Report
-------------------------------------------------------
The members and creditors of Dibsenta Pty Limited met on Nov. 7,
2008, and heard the liquidator's report on the company's wind-up
proceedings and property disposal.
FREIGHTLINK: Sale Fails, Appoints Voluntary Administrator
---------------------------------------------------------
FreightLink, the owner and operator of the Adelaide to Darwin
railway, has appointed a voluntary administrator after it was
unable to obtain all of the required consents for a voluntary sale
of the business, the company said in a statement. Receivers and
managers, KordaMentha, have also been appointed.
The company began a sale process in May this year on behalf of
shareholders and with the full support of the company's senior
banks.
In early September, a bidder who had made an offer significantly
higher than senior debt was named as preferred bidder. The
company stated although the transaction was approved by all
shareholders and a majority of mezzanine debt holders, the board
could not proceed with the sale because a small group of mezzanine
debt holders would not consent. This minority group had requested
that senior banks make some contribution to the mezzanine debt
holders. This was not acceptable to the senior banks as the offer
from the preferred bidder was well in excess of the senior debt,
said the company.
FreightLink chairman, Malcolm Kinnaird, said the board had been
very disappointed the sale process, which had yielded an
attractive bid, had been thwarted by the inability to achieve
consensus.
Mr. Kinnaird said the company had considerable debt which was
primarily incurred to help fund the construction phase of the
project.
"However, the operational success of the railway in converting 90%
of the general freight between Adelaide and Darwin to rail and in
capturing four minerals projects in its first five years of
operation is testament to the quality of the asset."
"The construction of the new railway has generated significant
economic benefits for the NT and SA and has been instrumental in
helping to establish a viable mining industry along the railway
corridor, providing the means to transport minerals cost
effectively for export overseas."
Mr. Kinnaird said the outlook for the business under a more
appropriate capital structure was positive and he was confident a
solution would be found to allow the business to continue to grow
and prosper.
The receivers and managers will now pursue a sale process and, as
before, there will be no impact on customers.
About FreightLink
FreightLink -- http://www.freightlink.com.au-- owns and operates
the railway between Tarcoola and Darwin under a 50-year concession
agreement, and provides transport services to Australia and
overseas markets centered on the Adelaide–Darwin corridor.
The company currently operates five train services a week
Adelaide–Darwin, with connecting rail services to other interstate
locations. In addition, it hauls bulk minerals destined for China
from mines on the Adelaide–Darwin railway to the Port of Darwin. A
track access agreement is in place with Great Southern Railway to
operate two weekly passenger services (The Ghan) between Adelaide
and Darwin.
IRENE SIMPSON: Members Receive Wind-Up Report
---------------------------------------------
The members of Irene Simpson Pty Ltd met on October 30, 2008, and
received the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
J. F. Taylor
c/o WHK Horwath Sydney
JAMES HARDIE: Q2 Profit Drops 26% on Weak U.S. Housing Market
-------------------------------------------------------------
James Hardie Industries N.V disclosed a US$36.2 million net
operating profit, excluding asbestos, ASIC expenses and tax
adjustments, for the quarter ended September 30, 2008, a decrease
of 26% compared to the same period last year.
For the quarter, net operating profit including asbestos, ASIC
expenses and tax adjustments was US$153.5 million (mainly due to
the effect of foreign exchange adjustments on the asbestos
liability which has been favorably impacted by the depreciation of
the AU$ against the US$), compared to US$19.1 million for the same
quarter last year.
For the half year, net operating profit excluding asbestos, ASIC
expenses and tax adjustments decreased 36% to US$76.2 million from
US$119.8 million. Including asbestos, ASIC expenses and tax
adjustments, net operating profit increased from US$58.2 million
to US$154.9 million.
Operating results were significantly affected by further declines
in the US housing market, where housing starts fell 35% in each of
the second quarter and the half year compared to the same periods
last year.
Operating Performance
Second quarter net sales decreased 12% to US$341.9 million, gross
profit was down 18% to US$113.2 million and EBIT excluding
asbestos and ASIC expenses was 26% lower at US$56.7 million. EBIT
including asbestos and ASIC expenses increased from US$44.7
million to US$192.2 million.
For the half year, net sales decreased 13% to US$706.9 million,
gross profit was down 22% to US$237.2 million and EBIT excluding
asbestos and ASIC expenses decreased 33% to US$122.2 million.
EBIT including asbestos and ASIC expenses increased 80% from
US$119.7 million to US$215.1 million.
Net sales of the USA and Europe Fibre Cement business decreased
16% for the quarter and 18% for the half year. USA and Europe
Fibre Cement EBIT was down 26% to US$61.1 million and 35% to
US$126.7 million for the quarter and half year, respectively, as a
result of lower volumes and higher costs, partially offset by
lower SG&A spending.
Asia Pacific Fibre Cement net sales were up 4% and 10% for the
quarter and half year, respectively. Asia Pacific EBIT increased
14% to US$14.1 million and 21% to US$29.9 million for the quarter
and half year, respectively, primarily due to favorable currency
exchange rate movements of the Asia Pacific business' currencies
compared to the US dollar.
Diluted earnings per share for the quarter and half year increased
to US35.5 cents and US35.8 cents per share, respectively, from
US4.1 cents and US12.4 cents per share in the same periods last
year.
Diluted earnings per share excluding asbestos, ASIC expenses and
tax adjustments decreased from US11.0 cents to US8.4 cents for the
quarter and decreased by 31% from US25.6 cents to US17.6 cents for
the half year.
CEO Commentary
"The US housing market continued to decline sharply during the
quarter and it now appears that US housing starts will fall below
the 800,000 level that our plant schedules were set for in
April 2008," said CEO Mr. Louis Gries. "Therefore, as announced
on November 4, 2008, we decided to temporarily cease production at
our Fontana, California and Summerville, South Carolina production
facilities. The available capacity at the seven plants that will
continue to operate will allow us to more economically service
demand in a sub 800,000 start market, and will also provide
necessary capacity to meet any unexpected short to medium term
increase in demand.
"Despite anticipated lower overall demand from both the new
construction and repair and remodel segments, we continue to fund
product and market initiatives designed to gain market share from
alternative products. As previously forecast, pricing has
remained relatively flat and planned reductions in the SG&A
expenses in our US business are being realized.
"In addition to continuing litigation on the 1999 disputed amended
assessment, we continue to negotiate with the Australian Taxation
Office regarding our tax years currently being audited. We remain
focused on resolving corporate legacy issues."
Dividend
In May 2007, the company announced a dividend policy of a payout
ratio of between 50% and 75% of net income before asbestos
adjustments, subject to funding requirements.
The company's United States business, which contributes
approximately three quarters of the Group's earnings, is now well
into the third year of a severe cyclical downturn in new
residential construction. On an annualized basis, new housing
starts are down approximately 65% from a peak of 2.2 million in
late 2005/early 2006 to approximately 800,000. More recently, the
US repair and remodel market has also been declining, as
homeowners have found it more difficult to access credit and to
justify upgrading properties when home values are declining.
Given these current conditions, the level of uncertainty
surrounding the global economy and future industry trends, and in
order to conserve capital, the Board has decided to omit the
interim dividend for the current fiscal year. The FY 2008 interim
dividend was US12.0 cents.
USA and Europe Fibre Cement
Second quarter net sales were down 16% compared to the same
quarter last year, to US$263.0 million. Sales volume decreased
17% to 429.9 million square feet, and the average net sales price
increased 1% from US$604 to US$612 per thousand square feet.
For the half year, net sales were down 18% compared to the same
period last year, to US$544.7 million. Sales volume decreased 19%
to 898.4 million square feet, and the average net sales price was
slightly higher at US$606 per thousand square feet.
Sales in USA and Europe Fibre Cement business continued to be
significantly affected by the ongoing weakness in the US housing
market, where housing starts fell 35% in the second quarter and
half year compared to the same periods last year.
Sales of exterior and interior products declined as sales were
lower across all divisions and in each key region, with the
exceptions of Canada, American Midwest and Europe. Products
featuring ColorPlus(R) technology increased as a percentage of
total exterior sales in the second quarter, compared to the same
quarter in the prior year.
EBIT for the quarter was 26% lower at US$61.1 million, primarily
due to reduced gross profit performance in the US, which resulted
from lower sales volume, higher freight costs and higher average
unit manufacturing costs. The higher average unit manufacturing
costs were a result of maintained variable cost levels and
relatively flat fixed costs spread over lower production levels.
The EBIT margin was 23.3% for the quarter compared to 27.4% for
the same period last year. For the half year, EBIT was 35% lower
at US$126.7 million and the EBIT margin was 23.2% compared to
30.4% for the same period last year.
Asia Pacific Fibre Cement
Net sales increased 4% to US$78.9 million for the quarter. In
Australian dollars, net sales decreased 1% due to a 2% decrease in
sales volume, partially offset by a 1% increase in the average
Australian dollar net sales price.
For the half year net sales increased 10% to US$162.2 million. In
Australian dollars, net sales increased 1% due to a 1% increase in
sales volume and a slightly higher average Australian dollar net
sales price.
The Australian business continued to outperform the overall market
downturn in the second quarter. The Australian Bureau of
Statistics (ABS) reported residential construction activity fell
5.1% in August on a seasonally-adjusted basis compared to last
year. Sales of ScyonTM products continued to build momentum.
Market pricing of flat sheet continued to decline due
to low priced imports and competitor activity. In New Zealand,
total residential building consents were down 20% compared to the
same period last year. In the Philippines, sales volumes and
revenue declined in local currency as a result of reduction in
export sales and a decline in the volume of higher-priced products
in the sales mix.
EBIT was 14% higher for the quarter at US$14.1 million and 21%
higher at US$29.9 million for the half year. Favorable currency
exchange rate movements in the Asia Pacific business'
currencies compared to the US dollar accounted for a large portion
of this increase. In Australian dollars, Asia Pacific Fibre
Cement EBIT decreased 9% for the quarter due to lower gross margin
performance and higher SG&A expenses. For the half year, EBIT
increased 1% due to an increased gross margin, partially offset by
increased SG&A expenses. The EBIT margin was 17.9% and 18.4% for
the quarter and half year, respectively, compared with 16.4% and
16.8% for the same periods last year.
Asbestos Adjustments
The effects of asbestos adjustments on EBIT for the quarter and
half year ended September 30, 2008 are:
US$ Millions Q2 FY 2009 Q2 FY 2008 HY FY 2009 HY FY 2008
------------ ---------- ---------- ---------- ----------
Effect of foreign $ 140.8 $ (27.0) $ 100.3 $ ( 60.2)
exchange movements
Other adjustments - (1.9) - 1.2
---------- ----------- ---------- ----------
Asbestos adj. $ 140.8 $ (28.9) $ 100.3 $ ( 59.0)
---------- ----------- ---------- ----------
ASIC Proceedings
In February 2007, the Australian Securities and Investments
Commission (ASIC) commenced civil proceedings against the company,
a former subsidiary and ten then-present or former officers and
directors of the James Hardie group. The civil proceedings
concern alleged contraventions of certain provisions of Australian
Corporations Law and/or the Corporations Act connected with the
affairs of the company and certain subsidiaries during the period
February 2001 to June 2003.
As disclosed by the company on September 4, 2008, ASIC has
withdrawn the part of its claim against the company whereby it
sought an order that the company execute a deed of indemnity in
favor of ABN 60 providing that the company indemnify ABN 60 for an
amount up to a maximum of AU$1.9 billion.
On September 5, 2008, ASIC stated that its investigations and the
Commonwealth Director of Public Prosecution's consideration were
complete and that no criminal proceedings were proposed.
The hearing of the proceedings in the Supreme Court of New South
Wales commenced on September 29, 2008, before his Honour Justice
Gzell. The company presently estimates that the hearing will be
completed before the end of fiscal year 2009 but that it is
expected that his Honour may reserve his decision.
For the three and six months ended September 30, 2008, the company
has incurred legal costs related to the defence costs, noted as
ASIC expenses, of US$5.0 million and US$6.5 million, respectively.
For the three and six months ended 30 September 2007, the company
incurred ASIC expenses of US$1.9 million and US$3.1 million,
respectively.
Cash Flow
Operating cash flow for the half year ended September 30, 2008,
decreased from US$231.0 million to US$93.3 million. The decrease
was driven primarily by the reduced contribution from the USA and
Europe Fibre Cement business and a quarterly installment payment
made to the AICF.
Capital expenditures for the purchase of property, plant and
equipment for the half year ended September 30, 2008, decreased
from US$24.2 million to US$9.4 million. The company anticipates
capital expenditures throughout fiscal year 2009 to be lower
compared to the previous fiscal year.
Income Tax
Income Tax Expense
Income tax expense for the quarter increased from US$27.6 million
to US$39.0 million. For the half year, income tax expense
decreased from US$64.0 million to US$59.4 million. The company's
effective tax rate on earnings excluding asbestos and tax
adjustments was 37.2% and 37.6% for the quarter and half year,
respectively, compared to 36.2% and 34.7% for the same quarter and
the first half of the prior year.
Tax adjustments
The company recorded unfavorable tax adjustments of US$20.5
million and US$17.4 million for the quarter and half year,
respectively, compared to US$0.8 million and US$1.6 million for
the quarter and half year in the prior fiscal year, respectively.
The tax adjustments made in fiscal years 2009 and 2008 relate to
adjustments made in accordance with Financial Accounting Standards
Board (FASB) Interpretation no. 48 (FIN 48) under US Generally
Accepted Accounting Principles.
ATO – 2002 Tax Audit
The ATO is auditing the company's Australian income tax returns
for the years ended March 31, 2002 and March 31, 2004 through
March 31, 2006.
On August 8, 2008, the Federal Court of Australia (Federal Court)
made orders providing for the reinstatement of the company's
former wholly-owned subsidiary James Hardie Australia Finance Pty
Limited (JHAF) to the register of companies and appointing
Max Donnelly of Ferrier Hodgson as the new liquidator of JHAF.
JHAF was deregistered on August 23, 2005, following a voluntary
winding up. The company understands that the reinstatement of
JHAF is a necessary pre-requisite to the ATO issuing an amended
assessment in respect of one of the issues that has been the focus
of the ATO's inquiries during the tax audit of fiscal year 2002.
The company is considering its position with respect to the ATO
proceedings, the merits of the potential amended assessment and
any obligations of JHAF to the ATO given its prior winding up.
ATO – 1999 Disputed Amended Assessment
As announced on March 22, 2006, RCI Pty Ltd (RCI), a wholly owned
subsidiary of the company, received an amended assessment from the
ATO in respect of RCI's income tax return for the year ended March
31, 1999. The amended assessment relates to the amount of
net capital gains arising as a result of an internal corporate
restructure carried out in 1998 and has been issued pursuant to
the discretion granted to the Commissioner of Taxation under
Part IVA of the Income Tax Assessment Act 1936.
On May 30, 2007, the ATO issued a Notice of Decision disallowing
the company's objection to the amended assessment. On July 11,
2007, the company filed an application appealing the Objection
Decision with the Federal Court of Australia. The hearing date
for RCI's trial scheduled to commence on December 8, 2008 has been
vacated by Court Order and is currently scheduled to be heard no
later than September 2009.
Internal Revenue Service (IRS) - Notice of Proposed Adjustment
(NOPA)
On June 23, 2008, the company announced that the IRS had issued it
with a NOPA that concludes that the company does not qualify for
the United States – Netherlands Treaty Limitations on Benefits
(LOB) provisions applicable from early 2006 and that accordingly
it is not entitled to beneficial withholding tax rates on payments
from the company's United States subsidiaries to its Netherlands
companies. The company does not agree with the conclusions
reached by the IRS, and the company is contesting the IRS'
findings. If the IRS position ultimately were to prevail, the
company would be liable for a 30% withholding tax on dividend,
interest and royalty payments made any time on or after 1 February
2006 by the company's US subsidiaries to JHI NV or the company's
Dutch finance subsidiary.
The company filed a formal protest on August 18, 2008, to exercise
its rights to an impartial hearing before the Appeals Division of
the IRS.
About James Hardie Industries N.V.
Headquartered in Sydney, Australia, James Hardie Industries N.V.
(ASX:JHX) -- http://www.ir.jameshardie.com.au/-- is an
international building materials group, which produces a range
of fiber cement building materials used in the exterior and
interior of residential and commercial buildings, from exterior
cladding and internal lining to pipes, bracing, decorative
elements and fencing. The company's segments include USA Fibre
Cement, Asia Pacific Fibre Cement and the Other segment. USA
Fibre Cement manufactures and sells fiber cement interior
linings, exterior siding and related accessories products in the
United States. Asia Pacific Fibre Cement includes all fiber
cement manufactured in Australia, New Zealand and the
Philippines and sold in Australia, New Zealand and Asia. Other
includes the manufacture and sale of fiber cement products in
Chile, the manufacture and sale of fiber cement reinforced pipes
in the United States, fiber cement operations in Europe and
roofing operations in the United States. The roofing plant was
closed and the business ceased opera.
James Hardie underwent a corporate restructuring and redomiciled
in the Netherlands in the second half of 2001. The company's
securities ceased trading under the Australian Securities
Exchange code 'HAH' on October 12, 2001, and commenced trading
under a new ASX code 'JHX' on October 15, 2004.
JIMI G PTY: Members and Creditors Receive Wind-Up Report
--------------------------------------------------------
The members and creditors of Jimi G Pty Limited met on Nov. 7,
2008, and heard the liquidator's report on the company's wind-up
proceedings and property disposal.
R. J. Dean-Willcocks is the company's liquidator.
KEYLINK TECHNOLOGY: Members and Creditors Hear Wind-Up Report
-------------------------------------------------------------
The members and creditors of Keylink Technology Pty Limited met on
November 7, 2008, and heard the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Geoffrey Mcdonald
Hall Chadwick
31 Market Street, Level 29
Sydney NSW 2000
MIKE'S ELECTRICS: Members and Creditors to Meet on December 12
--------------------------------------------------------------
The members and creditors of Mike's Electrics Pty Limited will
meet on December 12, 2008, at 10:30 a.m., to hear the liquidator's
report on the company's wind-up proceedings and property disposal.
The company's liquidator is:
M. J. M. Smith
Smith Hancock
Level 4, 88 Phillip Street
Parramatta NSW 2150
TOP STATION: Placed Under Voluntary Liquidation
-----------------------------------------------
At an extraordinary general meeting held on October 29, 2008, the
members of Top Station Grazing Co Pty Ltd agreed to voluntarily
liquidate the company's business.
The company's liquidator is:
Nicholas Preobrajensky
Nick Preo Accountant
43 King Street
Gloucester NSW 2422
VALLEY RIDGE: Placed Under Voluntary Liquidation
------------------------------------------------
During a general meeting held on October 29, 2008, the members of
Valley Ridge Investments Pty Limited agreed to voluntarily
liquidate the company's business.
The company's liquidator is:
P. Ngan
Ngan & Co Chartered Accountants
Level 5, 49 Market Street
Sydney NSW 2000
VRE PTY: Placed Under Voluntary Liquidation
-------------------------------------------
At an extraordinary general meeting held on September 23, 2008,
the members of VRE Pty Limited resolved to voluntarily liquidate
the company's business.
The company's liquidators are:
James Alexander Shaw
Scott Anthony Newton
Ferrier Hodgson
2 Market Street, Level 3
Newcastle NSW 2300
WALKER GOLF ET AL: Members Receive Wind-Up Report
-------------------------------------------------
On November 7, 2008, John Raymond Gibbons, a liquidator, presented
a report on the wind-up proceedings and property disposal for
these companies:
-- Walker Golf Pty Limited; and
-- Hope Island Resort Holdings Pty Limited.
The Liquidator can be reached at:
John Raymond Gibbons
Ernst & Young
Level 37, 680 George Street
Sydney, NSW 2000
Telephone:(02) 8295 6590
WHITSEND PTY: Members and Creditors Receive Wind-Up Report
----------------------------------------------------------
The members and creditors of Whitsend Pty Limited met on Nov. 7,
2008, and heard the liquidator's report on the company's wind-up
proceedings and property disposal.
R. J. Dean-Willcocks is the company's liquidator.
WORKPLACE RELATIONS: Placed Under Voluntary Liquidation
-------------------------------------------------------
At an extraordinary general meeting held on September 26, 2008,
the members of Workplace Relations Consulting Pty Limited
resolved to voluntarily liquidate the company's business.
The company's liquidator is:
J. A. Shaw
Ferrier Hodgson
2 Market Street, Level 3
Newcastle NSW 2300
Telephone:(02) 4908 4444
Facsimile:(02) 4908 4499
===============
H O N G K O N G
===============
AZIATECH ET AL: Members' Final Meeting Set for December 14
----------------------------------------------------------
On December 14, 2008, a final meeting will be held for the members
of these companies:
-- Aziatech Communications Co., Limited;
-- Chanco Management Company Limited; and
-- Artalent Limited
The meeting will be held at 138 Gloucester Road, in Wanchai,
Hong Kong.
BASF CONSTRUCTION ET AL: Appoints Yan and Marcus as Liquidators
---------------------------------------------------------------
On November 4, 2008, Ng Wai Yan and Ha Man Kit, Marcus were
appointed liquidators of:
-- BASF Construction Chemicals (Hong Kong) Limited; and
-- Engelhart Asia Pacific (Hong Kong) Limited.
The Liquidators can be reached at:
Ng Wai Yan
Ha Man Kit, Marcus
Queen's Place, Room 1902, 19th Floor
74 Queen's Road Central
Hong Kong
CHINA FAIR: Placed Under Voluntary Liquidation
----------------------------------------------
At an extraordinary general meeting held on November 7, 2008, the
members of China Fair Investments Limited resolved to voluntarily
liquidate the company's business.
The company's liquidator is:
Xu Yajie
ING Tower, Room 1701-2, 17th Floor
308 Des Voeux Road Central
Hong Kong
CITIC GROUP: S&P Puts Ratings on Watch With Negative Implications
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'A-3' short-term
foreign currency counterparty credit ratings on CITIC Group and
CITIC International Financial Holdings Ltd. on CreditWatch with
negative implications on Oct. 21, 2008, as indicated in S&P's
article. However, due to a technical error, the CreditWatch
placement of these short-term ratings did not update or display
correctly in S&P's database.
Ratings List
CITIC Pacific Ltd.
Corporate credit rating BB/Watch Neg/--
CITIC Group
Counterparty credit rating
Foreign currency BBB-/Watch Neg/A-3
CITIC International Financial Holdings Ltd. (unsolicited ratings)
Counterparty credit rating BBB-/Watch Neg/A-3
CITIC Resources Holdings Ltd.
Corporate credit rating BB+/Watch Neg/--
-- This list does not include all ratings affected.
CITIC PACIFIC: Moody's Alters Rating Review to Direction Uncertain
------------------------------------------------------------------
Moody's Investors Service has changed the rating review to
direction uncertain for both CITIC Pacific Ltd's Ba2 corporate
family rating and the Ba2 rating of CITIC Pacific Finance (2001)
Ltd's US$450 million bonds, which are guaranteed by CITIC Pacific.
These ratings were previously downgraded to Ba2 from Ba1 and
placed under review for further possible downgrade on Oct. 21,
2008, following the company's report of material losses from
leveraged foreign exchange contracts.
This rating action follows CITIC Pacific's announcement that its
major shareholder, CITIC Group (Baa1/RFPD), has provided a US$1.5
billion standby facility to the company, and plans to subscribe to
a US$1.5 billion convertible bond (to be automatically converted
into shares) and to take over a significant portion of the
outstanding loss-making leveraged foreign exchange contracts,
subject to shareholders' approval.
"These transactions will ease CITIC Pacific's short-term liquidity
pressure and help stabilize the company's financial profile," says
Elizabeth Allen, a Moody's VP/Senior Credit Officer.
"The transfer of some of these foreign exchange contracts will
also reduce the uncertainty associated with cash flow needs and
mark-to-market losses under the contracts. However, about one-
third of the contracts still remain with CITIC Pacific and they
are deeply out of money. The company expects to restructure them
into plain vanilla forward contracts to meet the Australia iron
ore project's demand for Australian dollar," adds Allen, also
Moody's lead analyst for the company.
At the same time, these actions by CITIC Group, which is wholly
owned by the Chinese State Council, demonstrates its willingness
to support CITIC Pacific in case of need, thereby helping instill
confidence in the company. Upon full conversion of the
convertible bond, CITIC Group will own about 57.6% of CITIC
Pacific, up from 29% currently.
Moody's considers such majority ownership and tangible support
beneficial to CITIC Pacific. The expected support from the parent
could result in potential rating uplift. On the other hand,
failure to complete the transactions will pressure the rating.
In its review, Moody's will focus on evaluating CITIC Pacific's
(a) financial and liquidity profile going forward in light of it
maintaining some of the foreign exchange contracts on its
books, and the global economic slowdown which weakens the
operating environment in its key business sectors including
special steel manufacturing, iron ore mining and Chinese
property development;
(b) level of support from CITIC Group, whose rating is still under
review for possible downgrade; (c) internal control system;
and
(d) successful completion of the above transactions with CITIC
Group.
CITIC Pacific Ltd, listed in Hong Kong, is a conglomerate 29%
owned by CITIC Group. It was one of the first Chinese companies to
list and invest outside of China. It is engaged in a range of
businesses in China and Hong Kong, including special steel
manufacturing, property development and investment, iron ore
mining, power generation, aviation, infrastructure, communications
and distribution.
CITIC Group, headquartered in Beijing, is a conglomerate
investment company wholly owned by the State Council of the
Chinese government. As of end-2007, it had total consolidated
total assets of RMB1,322 billion (US$180.7 billion).
CITIC PACIFIC: S&P Changes 'BB' Rating Outlook to Developing
------------------------------------------------------------
Standard & Poor's Ratings Services revised the CreditWatch
implications to developing from negative on its 'BB' long-term
corporate credit rating on CITIC Pacific Ltd. and relevant issue
ratings. At the same time, Standard & Poor's kept its issuer
credit ratings, along with relevant issue ratings, on CITIC Group,
CITIC International Financial Holdings Ltd., and CITIC Resources
Holdings Ltd. on CreditWatch with negative implications.
All these ratings had been placed on CreditWatch with negative
implications on Oct. 21, 2008, after CITIC Pacific's disclosure
that it had made an approximately HK$15.5 billion loss in some
leveraged foreign exchange forward contracts and that CITIC Group
had agreed to coordinate the arrangement of a standby loan
facility of US$1.5 billion for it.
"This revision of the CreditWatch implications on the ratings on
CITIC Pacific follow its announcement on Nov. 12, 2008, that,
among other things, CITIC Group has extended it a US$1.5 billion
standby facility, and agreed to economically assume a major
portion of CITIC Pacific's loss-making leveraged foreign exchange
forward contracts and subscribe to HK$11.625 billion in
convertible bonds to be issued by CITIC Pacific," said Standard &
Poor's credit analyst Lawrence Lu.
The announced plan is subject to approval by CITIC Pacific's
minority shareholders.
S&P expects the announced measures, if they materialize, to have a
negative effect on the financial position of CITIC Group on a
consolidated basis. While the measures could alleviate the
immediate financial pressures on CITIC Pacific, the company will
still be exposed to the remaining open position of the leveraged
foreign exchange forward contracts. Meanwhile, CITIC Group's
subscription of convertible bonds and their ensuing conversion
into common shares of CITIC Pacific should eventually make CITIC
Group a controlling shareholder of CITIC Pacific, with its equity
interest in the Hong Kong conglomerate rising to 57.56% from
29.44%.
"We will evaluate the announced plan's overall financial impact on
CITIC Group and review the group status of CITIC Pacific within
CITIC Group before resolving the CreditWatch placements," said Mr.
Lu.
S&P will also reassess government support, an important rating
factor, to CITIC Group. The CreditWatch status should be resolved
within the next three months after S&P meet with CITIC Group and
CITIC Pacific.
S&P could lower the rating on CITIC Group if S&P concludes that
the support that it gives to CITIC Pacific would lead to a
significant deterioration in its own financial profile, including
its company financial leverage ratios. This could be caused by
the uncertainty over the exposure from the outstanding foreign
exchange contracts.
The rating on CITIC Pacific could move up or down, depending on
S&P's assessment of the change in CITIC Pacific's status within
CITIC Group, the potential financial impact of this planned group
support and the remaining open position of the leveraged foreign
exchange forward contracts, and CITIC Pacific's remedy actions
regarding internal controls and risk management.
In addition, S&P will reassess the appropriateness of the level of
parental support that is incorporated into the ratings on CIFH and
CRH. S&P could lower the ratings on CIFH and CRH if S&P lower the
rating on CITIC Group.
COACTIVE TECHNOLOGIES: S&P Withdraws Low-B Public Ratings
---------------------------------------------------------
Standard & Poor's Ratings Services said that it withdrew its
public ratings on Hong Kong-based CoActive Technologies Inc. at
the company's request. Withdrawn ratings include the 'B'
corporate credit rating, 'B+' revolver with a recovery rating of
'2', 'B+' first-lien term bank loan with a recovery rating of '2',
and 'B' second-lien term bank loan with a recovery rating of '4'.
CoActive was formerly known as DeltaTech Controls Inc.
COLLINS & LEAHY ET AL: Seng and Lo Cease to Act as Liquidators
--------------------------------------------------------------
On November 8, 2008, Natalia K M Seng and Susan Y H Lo ceased to
act as liquidators of:
-- Collins & Leahy Far East Limited; and
-- Rannis Company Limited.
The company's former Liquidator can be reached at:
Natalia K M Seng
Susan Y H Lo
Three Pacific Place, Level 28
1 Queen's Road East
Hong Kong
COMMERZ SECURITIES: Tang and Man Quit as Liquidators
----------------------------------------------------
Alan Chung Wah Tang and Wong Kwok Man ceased to act as liquidators
of Commerz Securities (Japan) Company Limited on Nov. 4, 2008.
The company's former Liquidators can be reached at:
Alan Chung Wah Tang
Wong Kwok Man
Gloucester Tower, 13th Floor
The Landmark
15 Queen's Road Central
Hong Kong
CORDIALITY LABEL: Placed Under Voluntary Liquidation
----------------------------------------------------
The members of Cordiality Label Electronics (Hong Kong) Co.
Limited met on November 14, 2008, and resolved to voluntarily
liquidate the company's business.
The company's liquidator is:
Fung Wing Yuen
Xiu Ping Comm. Bldg., 1st Floor
104 Jervois Street, Sheung Wan
Hong Kong
IGAI COMPANY: Commences Liquidation Proceedings
-----------------------------------------------
At an extraordinary general meeting held on October 23, 2008, the
members of Igai Company Limited resolved to voluntarily liquidate
the company's business.
Alan C W Tang and Peter Wong were appointed as liquidators.
LEGG MASON ET AL: Members' Final Meeting Set for December 19
------------------------------------------------------------
A final general meeting will be held for the members of these
companies:
-- Legg Mason Investments (Taiwan) Holdings Limited at
10:00 a.m.; and
-- Vicour Limited at 10:10 a.m.
At the meeting, Natalia K M Seng, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
REDCHIP INTERNATIONAL: Creditors' Meeting Set for November 26
-------------------------------------------------------------
The creditors of Redchip International Limited will meet on
Nov. 26, 2008, at 2:30 p.m., for the purposes set out in Sections
241, 242, 243, 244, 251(1)(a), 255A(2) and 283 of the Companies
Ordinance.
The meeting will be held at the 29th Floor of Caroline Centre,
Lee Gardens Two, in 28 Yun Ping Road, Hong Kong.
STAGE CAFE: Placed Under Voluntary Liquidation
----------------------------------------------
Stage Cafe Limited commenced liquidation proceedings on Nov. 10,
2008.
The company's liquidator is:
Chan Kin Hang, Danvil
Ginza Square, Room 2301, 23rd Floor
565-567 Nathan Road, Yaumatei
Kowloon, Hong Kong
=========
I N D I A
=========
ALCATEL-LUCENT: To Expand Operations in India
---------------------------------------------
Alcatel-Lucent is looking at expanding its India operations as it
sees a strong growth in telecom services and converged services in
the country, The Times of India reports.
The report cites Alcatel-Lucent CEO Ben Verwaayen as saying "Even
in the present economic climate there is growth in India...there
is a drive to quality here which is an important element for the
market."
The company, which has 5,000 workforce in India, has plans to
raise the headcount. The Times says Mr. Verwaayen declined
however to share specific figures and the timeline.
The report notes that Alcatel, which is a key wimax player,
globally has a research centre in India in partnership with C-DoT.
The centre completed first live wimax field trial using mobile
service provider Aircel's licence spectrum last year.
The company, the report adds, may utilize India for manufacturing
broadband and wimax equipment through a transfer of technology and
contract manufacturing arrangement with state-owned ITI, according
to industry sources.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the TCR-Europe on Aug. 4, 2008, Standard & Poor's
Ratings Services revised to negative from stable its outlook
on France-based telecommunications equipment supplier Alcatel
Lucent. At the same time, the 'BB-/B' long- and short-term
corporate credit ratings on Alcatel Lucent, the 'BB-/B-1' long
and short-term corporate credit ratings on subsidiary Lucent
Technologies Inc., and all issue ratings on both companies were
affirmed.
Alcatel-Lucent continues to carry Ba3 Corporate Family and
Senior Debt ratings, Not-Prime for short term debt, as well as
B2 ratings for subordinated debt with negative outlook from
Moody's Investors Service. The ratings were affirmed in
April 2008.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt still carry Standard & Poor's Ratings Services'
BB rating. Its Short-Term Corporate Credit rating stands at B.
GINNI FILAMENTS: Fitch Long-Term Issuer Rating Tumbles to 'D'
-------------------------------------------------------------
Fitch Ratings has downgraded India-based Ginni Filaments Limited's
National Long-term Issuer rating to 'D(ind)' from 'BB(ind)', as
the company has defaulted in repayment of its debt obligations.
Simultaneously, the agency has downgraded the ratings of Ginni's
bank loans:
* Fund-based working capital lines aggregating INR1,050m:
National Long-term rating downgraded to 'D(ind)' from
'BB(ind)' and National Short-term rating downgraded to
'F5(ind)' from 'F4(ind)';
* Non fund-based working capital bank lines amounting to
INR220m: National Short-term rating downgraded to
'F5(ind)'from 'F4(ind)'; and
* Outstanding term loans from banks aggregating INR2,554m:
National Long-term rating downgraded to 'D(ind)', from
'BB(ind)'.
The downgrade reflects the company's inability to repay its debt
obligations led by the downside scenario in the Indian textile
industry, on account of inflation-led high raw material costs,
power costs and wages as well as weaker global consumption.
Pricing pressure has also been high especially on the export
front, as buyers negotiate for price cuts. The company's
profitability has been hit by high cotton prices, forex losses on
derivative transactions and increases in interest rates,
offsetting the benefits from INR depreciation against the USD and
measures taken by the company to control its power costs via a
grid connection. Ginni is under the process of filing a Corporate
Debt Restructuring proposal. The company's liquidity was further
stressed by delays in recovery of receivables from the Government
claims department under the Technology Upgradation Fund Scheme,
duty drawback on exports and the Duty Entitlement Pass Book
Scheme.
Ginni registered revenues of INR1,909 million during half-year
ended on September 2008 (H109), growing by 43.8% over H108.
However, the EBITDA profitability deteriorated to 6.5% from 8.9%
in H108. It incurred a net loss of INR131.2m during H109 which
includes INR36.8m foreign exchange losses on derivative
transactions. The company had recorded a net loss of INR176.3m in
FY08, which included INR134.8m losses on forex derivative
transactions.
Ginni was set up as a 100% Export-Oriented Unit in 1990 with a
production capacity of 26,208 spindles to produce ultra fine
combed cotton yarn. Ginni is now a vertically integrated textile
manufacturer across the value chain from yarn to knit fabrics to
apparel; although its major revenue source comes from its yarn
segment. Recently, the company underwent debonding - exiting from
the EOU scheme - to expand its presence into the domestic market.
* INDIA: Kingfisher's Mallya Calls for Foreign Tie-Ups to Survive
-----------------------------------------------------------------
Kingfisher Airlines Chairman Vijay Mallya is lobbying the
government to ease a "very restrictive" policy regarding foreign
ownership of Indian airlines, the Financial Times reports.
According to the FT, Mr. Mallya has urged New Delhi to allow
foreign airlines to take stakes of up to 25 per cent in Indian
carriers to help the ailing aviation industry survive pressing
financial difficulties.
Mr. Mallya told the FT in an interview that he was "approached
constantly" by foreign carriers seeking tie-ups with Kingfisher.
However, the FT says New Delhi prohibits international airlines
from taking stakes in Indian carriers, even though it allows
investors such as funds to take stakes of up to 49 per cent.
Indian carriers, the FT relates, are forecast to lose a combined
US$2 billion this financial year. Particularly, India's private
airlines, including Jet, the premium carrier, and IndiGo and
SpiceJet, the low-cost carriers, are scrambling for cash to help
them cope with a squeeze stemming from rising costs and declining
traffic, the FT says.
=========
J A P A N
=========
NOMURA HOLDINGS: Plans to Eliminate Jobs Among Ex-Lehman Staff
--------------------------------------------------------------
Nomura Holdings Inc. plans to cut jobs after taking over bankrupt
Lehman Brothers Holdings Inc.'s operations in Asia, Europe and the
Middle East last month, Takahiko Hyuga of Bloomberg News reports
citing four people familiar with the matter.
According to the report, two of the unnamed sources said, Nomura
may eliminate at least 30 positions in Tokyo, mainly among former
Lehman employees. Tetsu Serizawa, former deputy president of
Lehman's Japan operations and co-head of fixed-income sales in
Asia, will leave, they said.
Bloomberg News relates that the job cuts come a month after Nomura
agreed to take over Lehman's operations outside the Americas,
pledging to guarantee bonuses in an attempt to keep the 8,000
workers from joining other firms.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide. Through its team of more than 25,000 employees, Lehman
Brothers offers a full array of financial services in equity and
fixed income sales, trading and research, investment banking,
asset management, private investment management and private
equity. Its worldwide headquarters in New York and regional
headquarters in London and Tokyo are complemented by a network of
offices in North America, Europe, the Middle East, Latin America
and the Asia Pacific region. The firm, through predecessor
entities, was founded in 1850.
Lehman filed for chapter 11 bankruptcy Sept. 15, 2008 (Bankr.
S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed
$639 billion in assets and $613 billion in debts, effectively
making the firm's bankruptcy filing the largest in U.S. history.
The September 15 Chapter 11 filing by Lehman Brothers Holdings,
Inc., does not include any of its subsidiaries.
Subsidiary LB 745 LLC, submitted a Chapter 11 petition on
September 16 (Case No. 08-13600).
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
Dennis F. Dunne, Esq., Luc A. Despins, Esq., and Wilbur F. Foster,
Jr., Esq., at Milbank, Tweed, Hadley & Mccloy LLP, in New York,
and Paul Aronzon, Esq., and Gregory A. Bray, Esq., at Milbank in
Los Angeles, California, represent the official unsecured
creditors committee.
About Nomura Holdings
Headquartered in Tokyo, Japan, Nomura Holdings Inc. --
http://www.nomura.com/-- is a securities and investment banking
firm in Japan and has worldwide operations. Nomura is a holding
company. The services it provides include trading, underwriting,
and offering securities, asset management services, and others. As
of March 31, 2008, it operated offices in about 30 countries and
regions, including Japan, the United States, the United Kingdom,
Singapore and Hong Kong through its subsidiaries. The Company's
customers include individuals, corporations, financial
institutions, governments and governmental agencies. Nomura
operates in five business divisions: domestic retail, global
markets, global investment banking, global merchant banking and
asset management. In February 2007, Nomura acquired Instinet
Incorporated. Effective Oct. 1, 2008, Nomura Holdings Inc.
acquired Lehman Brothers Holdings Inc.'s European equities and
investment-banking business, and decided not to take on the fixed-
income unit.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
November 7, 2008, Fitch Ratings affirmed its ratings on Nomura
Holdings Inc. (NHI) and Nomura Securities Co., Ltd. (Nomura
Securities), and revised the Outlooks to Negative from Stable on
their Long-term Issuer Default Ratings. This action follows the
announcement by NHI of a JPY72.9 billion net loss for second
quarter of the fiscal year ended March 2009 (Q2FYE09), as well as
a net loss of JPY149.5 billion for the half year ended September
2008 (H1FYE09).
The TCR-AP reported on October 29, 2008 that Nomura Holdings
incurred a net loss of JPY72,872 million for the three
months ended Sept. 30, 2008, from a net loss of JPY11,707 million
in the same period last year. Net revenue for the current quarter
was JPY128,065 million, a decrease of 5.2% from JPY176,700 million
in the same period last year, the same report said.
* S&P Puts Ratings on 20 Japanese CDO Deals on Negative Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on 25
tranches relating to 20 Japanese synthetic CDO transactions on
CreditWatch with negative implications. At the same time,
Standard & Poor's affirmed its ratings on four tranches relating
to three Japanese synthetic CDO transactions and removed them from
CreditWatch with negative implications.
The 25 tranches that have been placed on CreditWatch with negative
implications had SROC (synthetic rated overcollateralization)
levels that fell below 100% during S&P's monthly run on
November 7. The ratings on the other four tranches have been
affirmed and removed from CreditWatch with negative implications
because their SROC levels have recovered to 100% or above during
S&P's monthly run on Nov. 7.
The monthly run was rescheduled to Nov. 7 from the end of October
to reflect the auction results of the International Swaps and
Derivatives Association's protocols for three Iceland-based banks
(Kaupthing Bank, Landsbanki Islands, and Glitnir Bank). The
auctions were held from Nov. 4 to Nov. 6. Regarding entities that
have been exposed to credit events during the past few months, S&P
has considered the auction results in S&P's analysis of their
recovery assumptions.
The rating actions and CreditWatch placements reflect revisions
that S&P has adopted in certain assumptions, including revisions
of S&P's assumptions over probabilities of default, industry
classifications, and correlation assumptions applied to real
estate investment trusts, real estate operating companies, and the
insurance sector in rating collateralized debt obligations and
credit default swaps.
SROC is the key measurement used to determine whether a rating
action is required. It captures the major influences on portfolio
performance: events of default, asset migration, amortization of
assets, and time decay.
The tranches listed below that have been placed on CreditWatch,
along with any other tranches with ratings that are currently on
CreditWatch with negative or positive implications, will be taken
to committee in the later part of this month for further rating
actions.
Ratings Placed on CreditWatch Negative
Andante Ltd.
Credit-linked secured notes series 3
Class To From Issue Amount
----- -- ---- ------------
A-1 B-/Watch Neg B- JPY700.0 mil.
A-2 B-/Watch Neg B- JPY300.0 mil.
B CCC/Watch Neg CCC JPY3.0 bil.
C CCC+/Watch Neg CCC+ $10.0 mil.
Corsair (Jersey) No. 2 Ltd.
Fixed rate secured portfolio credit-linked loan series 53
To From Issue Amount
-- ---- ------------
AA/Watch Neg AA JPY3.0 bil.
Floating-rate secured portfolio credit-linked notes series 78
To From Issue Amount
-- ---- ------------
BBB-/Watch Neg BBB- JPY3.0 bil.
Floating rate secured portfolio credit-linked notes series 81
To From Issue Amount
-- ---- ------------
B-/Watch Neg B- JPY1.0 bil.
Eirles Two Ltd.
Portfolio credit linked secured notes series 310
Class To From Issue Amount
----- -- ---- ------------
A A-/Watch Neg A- JPY5.0 bil.
ELM B.V.
Global portfolio CDO secured notes series 43
To From Issue Amount
-- ---- ------------
BBB-/Watch Neg BBB- $20.0 mil.
Helium Capital Ltd.
Corporate basket limited recourse secured credit-linked
extendable notes
(Scarborough) series 64
To From Issue Amount
-- ---- ------------
CCC+/Watch Neg CCC+ A$100.0 mil.
Momentum CDO (Europe) Ltd.
SONATA notes series 2006-2
Class To From Issue Amount
----- -- ---- ------------
AF BBB/Watch Neg BBB JPY2.0 bil.
AX BBB/Watch Neg BBB JPY1.1 bil.
SONATA notes series 2006-7
Class To From Issue Amount
----- -- ---- ------------
BF BBB-/Watch Neg BBB- JPY100.0 mil.
BX BBB-/Watch Neg BBB- JPY700.0 mil.
SONATA fixed-rate notes series 2006-10
Class To From Issue Amount
----- -- ---- ------------
AX BBB-/Watch Neg BBB- EUR20.0 mil.
Signum Vanguard Ltd.
Secured floating rate credit-linked notes series 2005-07
To From Issue Amount
-- ---- ------------
BBB-/Watch Neg BBB- JPY3.0 bil.
Series 2006-07 secured fixed rate credit-linked notes
To From Issue Amount
-- ---- ------------
BB-/Watch Neg BB- JPY500.0 mil.
Secured floating rate credit-linked notes series 2006-08
To From Issue Amount
-- ---- ------------
CCC+/Watch Neg CCC+ JPY1.0 bil.
Secured floating rate credit-linked notes series 2006-10
To From Issue Amount
-- ---- ------------
BB/Watch Neg BB JPY300.0 mil.
Secured floating rate credit-linked notes series 2006-11
To From Issue Amount
-- ---- ------------
B-/Watch Neg B- JPY2.0 bil.
Series 2007-02 secured fixed rate credit-linked notes
To From Issue Amount
-- ---- ------------
B-/Watch Neg B- JPY1.0 bil.
Silk Road Plus PLC
Series 13 limited recourse secured fixed rate credit-linked notes
To From Issue Amount
-- ---- ------------
BBB+/Watch Neg BBB+ S$8.064 mil.
Series 14 limited recourse secured fixed rate credit-linked notes
To From Issue Amount
-- ---- ------------
BBB+/Watch Neg BBB+ S$8.5 mil.
Series 15 limited recourse secured fixed-rate credit-linked notes
To From Issue Amount
-- ---- ------------
BBB+/Watch Neg BBB+ S$8.0 mil.
Series 16 limited recourse secured fixed-rate credit-linked notes
To From Issue Amount
-- ---- ------------
BBB+/Watch Neg BBB+ S$9.0 mil.
Ratings Affirmed and Removed From CreditWatch
Andante Ltd.
Credit linked secured notes series 4
Class To From Issue Amount
----- -- ---- ------------
F CCC CCC/Watch Neg JPY300.0 mil.
Helium Capital Ltd.
Series 49 limited recourse secured synthetic CDO notes
To From Issue Amount
-- ---- ------------
BB+ BB+/Watch Neg $40.0 mil.
Skylark Ltd.
Secured credit-linked notes series 2004-2 (Aska)
Class To From Issue Amount
----- -- ---- ------------
B AAA AAA/Watch Neg JPY3.0 bil.
C AAA AAA/Watch Neg JPY1.5 bil.
===============
M A L A Y S I A
===============
PUTERA CAPITAL: Bourse to De-list Securities on November 26
-----------------------------------------------------------
Putera Capital Berhad's securities will be removed from the
Official List of Bursa Securities at 9:.00 a.m. on November 26,
2008, unless an appeal is made by to Bursa Securities by November
21, 2008.
After due consideration of all facts and circumstances of the
matter, Bursa Securities said it has decided to de-list the
securities of Putera from the Official List of Bursa Securities as
the company does not have an adequate level of financial condition
to warrant continued listing on the Official List of Bursa
Securities.
About Putera Capital
Headquartered in Kamunting-Taiping, Malaysia, Putera Capital
Berhad is principally involved in the investment and development
of properties. Its other activities include the manufacture and
sale of yarn and woven fabrics, construction and management of
water and sewage treatment plant, contractor of construction
projects, distribution of marble, tiles, and related business
and investment holding.
* * *
The company is classified as an Affected Listed Issuer due to
these reasons:
a) The shareholders' equity of the company on a
consolidated basis has fallen below 25% of its issued
and paid up capital as per its unaudited 3rd quarter
financial results as announced on April 28, 2006. As
such its shareholders equity is less than the minimum
issued and paid up capital.
b) The auditors have expressed a modified opinion with
emphasis on Putera's going concern in its audited
accounts as of May 31, 2005.
c) There are defaults in repayment of certain debt
obligation by Putera and its subsidiaries and Putera is
unable to provide a solvency declaration to Bursa
Malaysia Securities Berhad.
As of Feb. 29, 2008, Putera Capital's consolidated balance sheet
went upside down by MYR22.18 million, on total assets of
MYR31.53 million and total liabilities of MYR53.71 million.
TRIPLC BERHAD: Bourse Extends Regularization Plans to December 31
-----------------------------------------------------------------
Bursa Malaysia Securities Berhad disclosed that it granted TRIPLC
Berhad an extension of time until December 31, 2008, to submit the
company's regularization plans to the Securities Commission and
other relevant authorities for approval.
Bursa Securities had commenced de-listing procedures against
TRIPLC on October 24, 2008, as the Securities Commission had
rejected the company's appeal against SC's earlier decision to
reject the company's regularization plans.
After due consideration of all facts and circumstances of the
matter including the company's representation on its revised
scheme involving the proposed development of Phase 2 of the
University Teknologi Mara's Puncak Alam Campus Selangor which
would address the Securities Commission's concerns on the
viability of the core business of the company, Bursa Securities
has decided to grant TRIPLC an extension of time until Dec. 31,
2008 as requested to submit the company's regularization plans to
the Approving Authorities for approval.
The extension of time granted to TRIPLC is without prejudice to
Bursa Securities' right to proceed to de-list the securities of
the company from the Official List of Bursa Securities in the
event:
1. TRIPLC fails to submit the company's regularisation
plans to the Approving Authorities for approval by
December 31, 2008;
2. TRIPLC fails to obtain the approval from any of the
Approving Authorities necessary for the implementation
of the company's regularization plans and does not
appeal to the Approving Authorities within the timeframe
(or extended timeframe, as the case may be) prescribed
to lodge an appeal;
3. TRIPLC does not succeed in the company's appeal against
the decision of the Approving Authorities; or
4. TRIPLC fails to implement the company's regularization
plans within the timeframe or extended timeframes
stipulated by the Approving Authorities.
Upon occurrence of any of the events set out in (1) to (4) above,
the securities of the company shall be removed from the Official
List of Bursa Securities upon the expiry of 7 market days from the
date the company is notified by Bursa Securities or such other
date as may be specified by Bursa Securities.
About TRIPLC
TRIPLC Berhad operates in four segments: property development,
which is engaged in the development of residential and
commercial properties; property construction, which is involved
in the construction of commercial properties; manufacturing and
trading, engaged in the manufacturing and trading of plywood,
blockboard and timber products, and others, which is engaged in
investment holding and investment of property.
On May 8, 2006, the company was classified as an affected listed
issuer of the Amended Practice Note 17 category of the Bursa
Malaysia Securities Bhd. Accordingly, as stipulated in the
listing requirements of the bourse, the company is required to
submit a regularization plan to relevant authorities which is
aimed at stabilizing the company's financial condition.
On January 5, 2007, the company submitted an application on a
regularization plan to the relevant authorities which was
subsequently rejected by the Securities Commission on May 3, 2007.
The Company's appeal on the SC's decision was also rejected on
October 9, 2008. Currently, the company submitted an appeal to
Bursa Securities for an extension of time until December 31, 2008,
for TRIPLC to make the necessary applications to the relevant
authorities.
====================
N E W Z E A L A N D
====================
AUTO SALON: Faces CIR's Wind-Up Petition
----------------------------------------
A petition to have Auto Salon Ltd.'s operations wound up was filed
by the Commissioner of Inland Revenue on July 21, 2008.
The petition will be heard before the High Court at Auckland on
November 19, 2008, at 10:00 a.m.
Michael Kinlim Yan is the solicitor for the Commissioner of Inland
Revenue.
BRENDO ENTERPRISES: Court Hears Wind-Up Petition
------------------------------------------------
On October 6, 2008, the High Court at Hamilton heard a petition to
have Brendo Enterprises Ltd.'s operations wound up.
AML Limited filed the petition against the company on Oct. 6,
2008.
DISPENSING SYSTEMS: Court Hears Wind-Up Petition
------------------------------------------------
On November 14, 2008, the High Court at Auckland heard a petition
to have Dispensing Systems Ltd.'s operations wound up.
Mainfreight International Limited filed the petition against the
company on July 14, 2008.
C. N. Lord is the solicitor for the Mainfreight International.
GHCC DEVELOPMENT: Subject to Warren and Mahoney's Wind-Up Petition
------------------------------------------------------------------
On August 7, 2008, Warren and Mahoney Limited filed a petition to
have GHCC Development Ltd.'s operations wound up.
The petition will be heard before the High Court at Auckland on
November 19, 2008, at 10:45 a.m.
A. M. Hutton is the solicitor of Warren and Mahoney.
INNOVATIVE PROJECTS: Faces Eliot Sinclair's Wind-Up Petition
------------------------------------------------------------
On October 2, 2008, Eliot Sinclair & Partners Limited filed a
petition to have Innovative Projects Ltd.'s operations wound up.
The petition will be heard before the High Court of Christchurch
on November 17, 2008, at 10:00 a.m.
J. Forsey is Eliot Sinclair's solicitor.
ITI CONTRACTING: Subject to CIR's Wind-Up Petition
--------------------------------------------------
On July 21, 2008, the Commissioner of Inland Revenue filed a
petition to have ITI Contracting 2007 Ltd.'s operations wound up.
The petition will be heard before the High Court at Auckland on
November 19, 2008, at 10:00 a.m.
Michael Kinlim Yan is the solicitor for the Commissioner of Inland
Revenue.
NORTH 2 SOUTH: Subject to CIR's Wind-Up Petition
------------------------------------------------
On July 21, 2008, the Commissioner of Inland Revenue filed a
petition to have North 2 South Relocations Ltd.'s operations wound
up.
The petition will be heard before the High Court of Auckland on
November 19, 2008, at 10:00 a.m.
Michael Kinlim Yan is the company's liquidator.
PLUS SMS: Former CEO Files Legal Action in U.S. Court
-----------------------------------------------------
Former SMS Plus Holdings Ltd CEO Chris Tiensch filed legal action
against the company and several directors, alleging wrongful
dismissal and defamation, Tim Hunter of Sunday Star Times reports.
According to the report, Mr. Tiensch filed a suit seeking
unspecified damages on October 23, 2008, in a Texas court.
The report relates that the Texas court, last week, granted
Mr. Tiensch an injunction barring Plus SMS from transferring
assets or documents out of Texas "because there is an immediate
threat that assets will be transferred that cannot freely be
transferred back and that documents will be destroyed".
As reported by the Troubled Company Reporter-Asia Pacific on
Sept. 17, 2008, Mr. Tiensch resigned as Chairman and Director and
given the company six months notice of his intention to resign
from his roles a CEO.
On October 13, 2008, the TCR-AP related that Plus SMS terminated
its employment agreements with Mr. Tiensch, and its Chief
Financial Officer, L. F. Coates, due to material and fundamental
breaches of their employment duties, obligations and agreements.
Citing Aaron Lim of BusinessDay.co.nz, the TCR-AP reported on
Sept. 26, 2008, that Plus SMS appears to be headed into a
legal battle with its outgoing CEO and Chairman, Christopher
Tiensch, over the validity of the proposed issue of 13,481,838 new
ordinary shares to Mr. Tiensch as part of his employment contract.
About Plus SMS
Plus SMS Holdings Ltd. (NZX: PLS) -- http://www.cre-eight.com/
-- is the parent company of Plus SMS Limited. It provides
access to businesses to the number ranges required for the
routing of short message service and multimedia messaging system
messages worldwide using a single short number. On July 4,
2005, Plus SMS Limited acquired Plus SMS Holdings Limited in a
reverse acquisition.
* * *
The company incurred three consecutive net losses of NZ$6.96
million, NZ$11.89 million, and NZ$4.49 million for the financial
years ended March 31, 2008, 2007 and 2006, respectively.
PREMIER FLOORING: Court Hears Wind-Up Petition
----------------------------------------------
On November 17, 2008, the High Court at Tauranga heard a petition
to have Premier Flooring Limited Ltd.'s operations wound up.
The Commissioner of Inland Revenue filed the petition against the
company on September 4, 2008.
A. Murphy is the solicitor for the Commissioner of Inland Revenue.
SWASHBUCKLERS: Court to Hear Wind-Up Petition on Dec. 17
--------------------------------------------------------
A petition to have Swashbucklers Restaurant Ltd.'s operations
wound up will be heard before the High Court of Auckland on
Dec. 17, 2008, at 10:45 a.m.
Marac Finance Limited filed the petition against the company on
August 18, 2008.
M. J. Tingey is Marac Finance's solicitor.
TRYPHENA INVESTMENTS: Wind-Up Petition Hearing Set for Dec. 17
--------------------------------------------------------------
A petition to have Tryphena Investments Ltd.'s operations wound up
will be heard before the High Court of Auckland on Dec. 17, 2008,
at 10:45 a.m.
Marac Finance Limited filed the petition against the company on
August 18, 2008.
M. J. Tingey is Marac Finance's solicitor.
WAIKATO CARPARK: Faces Brookfields' Wind-Up Petition
----------------------------------------------------
On July 31, 2008, Brookfields Lawyers filed a petition to have
Waikato Carpark Ltd.'s operations wound up.
The petition will be heard before the High Court of Auckland on
November 19, 2008, at 10:45 a.m.
D. J. Neutze is Brookfields' solicitor.
===============
P A K I S T A N
===============
PAKISTAN MOBILE: S&P Downgrades Corporate Credit Rating to 'B-'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on Pakistan Mobile Communications Ltd. to 'B-' from
'B'. The outlook on the rating remains negative. At the same
time, Standard & Poor's lowered its issue rating on Mobilink's
senior unsecured notes to 'B-' from 'B'.
The rating actions follow Standard & Poor's decision to lower the
long-term and short-term sovereign credit ratings on Pakistan
(Islamic Republic of) (foreign currency CCC/Developing/C; local
currency CCC+/Developing/C) with a developing outlook. In tandem
with lowering of the sovereign rating, Pakistan's transfer and
convertibility (T&C) rating has been moved to 'B-' from 'B'.
"The rating downgrade reflects Mobilink's heightened exposure to
funding risks, further deterioration of the country's economic
situation and more difficult operating conditions," said Standard
& Poor's credit analyst Yasmin Wirjawan.
The rating on Mobilink also reflects the expected decline in
cash-flow-protection measures, increased competition, and high
management fees to its shareholder, Orascom Telecom Holdings
S.A.E. (B+/Negative/--). These risks are partly offset by
strategic benefits, likely funding support from its parent, the
company's leading market position, and its first-mover advantage.
The negative rating outlook on Mobilink reflects the risk factors
on Pakistan, its business environment and the possibility of a
further deterioration due to the government's current fiscal
situation. In the near to medium term, Standard & Poor's expects
the rating on Mobilink to be driven by the country's risk
environment and the company's ability to maintain adequate
internal cash generation and liquidity.
* PAKISTAN: Obtains US$7.6 Billion Loan From IMF
------------------------------------------------
The International Monetary Fund (IMF) and Pakistan have reached an
agreement in principle on the key elements of an economic program
to be supported by an SDR5.17 billion (about US$7.6 billion) 23-
month Stand-By Arrangement, subject to the approval of the IMF
Executive Board, IMF Managing Director Dominique Strauss-Kahn
said in a press statement Saturday.
According to Mr. Strauss-Kahn, the policy package is intended to
help the country meet its serious balance of payments
difficulties. The program, he said, has two main objectives:
(i) to restore the confidence of domestic and
external investors by addressing macroeconomic
imbalances through a tightening of fiscal
and monetary policies; and
(ii) to protect the poor and preserve social
stability through a well-targeted and
adequately funded social safety net.
The support, Mr. Strauss-Kahn noted, is part of a broader package
that includes financing from other multilateral institutions and
regional development banks.
Mr. Strauss-Kahn added "The IMF is prepared to help Pakistan by
providing a high level of financial support on the order of 500
percent of the country's quota in the Fund."
Pakistan, which joined the Fund on July 11, 1950, has a quota of
SDR 1,033.7 million (about US$1,526.3 million).
Bloomberg News relates Pakistan was forced to seek assistance from
the IMF after its foreign-exchange reserves shrank 75 percent in
the past year to US$3.5 billion, raising concern about its ability
to repay debt.
According to Bloomberg News, the Asian Development Bank is
optimistic that Pakistan's US$7.6 billion rescue from the IMF will
help the nation overcome a "crisis of confidence" and improve its
debt rating.
"There is no reason why it should not" lead to an upgrade in
Pakistan's credit rating, ADB Managing Director Rajat Nag told
Bloomberg News. "The IMF program will bolster confidence and I am
optimistic Pakistan will be able to undertake the reforms required
for the bailout package."
The Wall Street Journal adds to this report that the IMF's package
falls well short of the US$10 billion to US$15 billion that
Pakistani officials have said they need over the next two years to
fix the economy. Some of that shortfall will be made up by loans
from the World Bank and the Asian Development Bank, the Journal
says.
The rest of the needed financing could come from the so-called
Friends of Democratic Pakistan, a group of allies such as the
U.S., China, European powers and Saudi Arabia, the Journal
discloses.
* PAKISTAN: S&P Junks Long-Term Currency Ratings
------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term foreign
currency sovereign credit rating on the Islamic Republic of
Pakistan to 'CCC' from 'CCC+' and its long-term local currency
rating to 'CCC+' from 'B-'. The outlook on the long-term rating
is developing.
The rating on Pakistan's senior unsecured local currency debt has
also been lowered to 'CCC+' from 'B-', while the foreign currency
debt rating has been lowered to 'CCC' from 'CCC+'. In tandem with
lowering of the sovereign rating, Pakistan's transfer and
convertibility rating has moved to 'B-' from 'B'. Likewise, the
foreign currency issue rating on Pakistan International Sukuk Co.
has been lowered to 'CCC' from 'CCC+'.
"The downgrade reflects S&P's view that ongoing delay by Pakistan
in securing external assistance essential for the immediate
stabilization of its balance of payments position has further
increased the prospect of near-term debt service difficulties,
heralding either a rescheduling of commercial external debt or an
outright payment default," said Standard & Poor's credit analyst
Agost Benard.
Despite numerous attempts over the recent months, the
administration has only been able to secure minimal multilateral
and bilateral aid, including from countries deemed to have a
strategic interest in Pakistan's economic and political stability.
Without a formal macroeconomic stabilization program--likely
within the framework of an International Monetary Fund loan
program--it appears that no substantive material assistance from
such sources will be forthcoming. Although the administration
sees an IMF program as inevitable, it is being delayed by
political considerations.
"Both the ruling PPP and opposition parties appear unwilling to
undertake the necessary fiscal correction to make an external
adjustment credible," Mr. Benard said.
The current rating and developing outlook also take into account
Standard & Poor's view that, while an IMF program and resultant
fund inflows should halt further balance of payments deterioration
and avert default in the near term, Pakistan's fluid internal
political situation means there is no assurance that a
stabilization program will succeed. The PPP-led coalition
government is faced with a hostile and effective opposition in the
PML-N, as well as popular discontent that may only rise once
austerity measures begin.
"Both the political compulsions and risks to implementing
necessary but unpopular measures are aptly illustrated by the
government's delay in raising electricity tariffs (needed to curb
both subsidies and energy imports) and its reported decision to
reinstate several thousand public servants sacked at various times
during the 1990s," Mr. Benard said.
A developing outlook indicates that the next rating action could
be either upward or downward. "The sovereign ratings on Pakistan
could be raised back to 'CCC+' if a macroeconomic stabilization
program--possibly IMF endorsed--is signed and the government
appears able to implement it. Conversely, further reserve
depletion or fiscal slippage could eliminate the government's room
to maneuver, raising further the risk of default," Mr. Benard
concluded.
=====================
P H I L I P P I N E S
=====================
FIRST GEN: Third Quarter Profit Falls 64.1%
-------------------------------------------
First Gen Corporation reported lower profits in the third quarter
of 2008 with net income attributable to parent of US$35.6 million,
down by 64.1 percent compared to the net income for the same
period in 2007 of US$99.1 million.
The decrease was primarily driven by an increase in interest and
financing costs resulting from debt taken on for the purchase of
its controlling stake in Energy Development Corporation (EDC),
formerly known as PNOC-Energy Development Corporation; the income
tax payments of its 1,000MW Santa Rita Power Plant, whose income
tax holiday ended in May 2007; and the lower net income of First
Gen Hydro Power Corporation (FGHPC), the company that owns the
112MW Pantabangan/Masiway hydroelectric power plant complex.
"Our lower net income was expected considering the amount of debt
we had to take on in acquiring a controlling stake in EDC. The
company is currently focused on a number of fund raising exercises
and is already on its way to normalizing its financials," First
Gen Chief Finance Officer Giles Puno said.
With the closing and funding of the US$544 million term loan of
First Gas Power Corporation and the sale of the stake in
Pantabangan/Masiway hydro power plant, we have addressed most of
the bridge loans coming due in November. The First Gas term loan
was completed amidst an extremely challenging financial
environment. This confirms the belief of the international
commercial banks in the fundamentals and creditworthiness of our
projects, he added.
Based on the most recent unaudited consolidated financial
statements, First Gen's consolidated revenues rose to US$1.3
billion, higher by 64.3 percent from last year's revenues of
US$0.8 billion for the same period. Correspondingly, income from
operations also increased to US$373.0 million or by 76.2 percent.
The increase was due to the consolidation of EDC's financials,
following the November 2007 purchase of the geothermal company's
shares from the Government. The said increase in income from
operations fully offset the decrease in earnings of FGHPC as it
delivered lower earnings for year-to-date September 2008 resulting
from reduced irrigation requirements that led to lower generation
output and the lower prices at the Wholesale Electricity Spot
Market.
The increase in income from operations was, however, diminished by
higher consolidated interest expenses and financing charges of
US$141.0 million, or an incremental difference of 150.2Â percentÂ
as compared to last year's US$56.4 million, mainly resulting from
the debt for the EDC purchase and the consolidation of interest
expense from EDC's existing loans. This was exacerbated by
unrealized foreign exchange losses due to the depreciation of the
Philippine Peso and the Japanese Yen's appreciation.
First Gen and its subsidiaries have recently announced a stream of
positive news aimed at addressing the debt it took on for the
purchase of the world's second largest geothermal company. These
include the closing of the US$544.0 million debt at First Gas
Power Corporation, which netted the company US$215.0 million; the
sale of a 60.0 percent stake in FGHPC amounting to proceeds of
US$104.1 million and the signing of an agreement with a consortium
headed by Marubeni Corporation for the sale of an up to 40.0
percent stake in Red Vulcan Holdings Corporation (Red Vulcan), the
holding company for First Gen's shares in EDC. Part of the
proceeds from the Marubeni consortium will be used to fully pay
the remaining debt at Red Vulcan.
About First Gen
First Gen Corporation (FGEN) was incorporated on Dec. 22, 1998, as
an independent power producer in the Philippines. It listed its
shares at the Philippine Stock Exchange on Feb. 10, 2006.
FGEN is engaged in the business of power generation through
several companies, namely, First Gas Power Corporation, which
operates the 1000 MW Santa Rita power plant; FGP Corporation,
which operates the 500 MW San Lorenzo power plant; Bauang Private
Power Corporation, which operates the 225 MW Bauang power plant;
First Gen Hydro Power Corporation, which operates the 112 MW
Pantabangan-Masiway hydroelectric power plants; and FG Bukidnon
Power Corporation, which operates the 1.6 MW Agusan power plant.
FGEN also intends to expand into businesses that complement its
power generation operations. In particular, the company expects
to play a major role in the development of downstream natural gas
transmission and distribution facilities, which is among the
flagship projects of the Department of Energy.
FIRST GEN: Obtains US$544 Mil. Funding to Refinance Debts
---------------------------------------------------------
First Gen Corporation disclosed in regulatory filing that First
Gas Power Corporation has signed a US$544 million term loan
facility to refinance its maturing debts.
According to First Gen, the term loan facility will come from nine
foreign banks: The Bank of Tokyo-Mitsubishi UFJ Ltd., Calyon, KfW
IPEX Bank GmbH, ING Bank N.V. Singapore Branch, Bayerische Hypo-
und Vereinsbank AG Hong Kong Branch, Malayan Banking Berhad,
Standard Chartered Bank, Societe Generale and Kreditanstalt fur
Wiederaufbau.
The company said the loan proceeds will be used to repay First
Gas' existing debt of US$132 million.
First Gas is a wholly-owned subsidiary of First Gas Holdings
Corp., which is in turn owned 60 percent by publicly-listed First
Gen Corp., with the remaining 40 percent owned by BG Consolidated
Holdings (Philippines), Inc.
The term loan consists of two tranches: an uncovered facility with
a 10-year tenor and a political risk - covered facility with a
12.5-year tenor.
Out of the proceeds of the refinancing, First Gen will receive the
amount of US$215 million, which amount will be used to pay down a
significant portion of First Gen's maturing debts.
"Despite the volatility of today's financial market, the US$544-
million long-term debt facility obtained by First Gas is a
testimony to the lenders' continuing confidence and commitment to
our group and the projects that we undertake," Federico R. Lopez,
president and CEO of both First Gen and First Gas said.
As reported by the Troubled Company Reporter-Asia Pacific on
October 15, 2008, Malaya News related that First Gen Corporation
is likely to miss payment on US$442 million debts due Nov. 20,
2008.
Reuters reported First Gen President and Chief Executive Officer
Federico Lopez said it may borrow less than the US$700 million it
needs from banks to refinance debt because of pricing difficulties
and could sell some assets.
According to Reuters, the debt was incurred by First Gen's
US$1.35 billion purchase last year for a majority 60% stake in
geothermal power producer Energy Development Corp (EDC) and also
investment in a 1,000-MW natural gas-fired plant on the main Luzon
island.
About First Gen
First Gen Corporation (FGEN) was incorporated on Dec. 22, 1998, as
an independent power producer in the Philippines. It listed its
shares at the Philippine Stock Exchange on Feb. 10, 2006.
FGEN is engaged in the business of power generation through
several companies, namely, First Gas Power Corporation, which
operates the 1000 MW Santa Rita power plant; FGP Corporation,
which operates the 500 MW San Lorenzo power plant; Bauang Private
Power Corporation, which operates the 225 MW Bauang power plant;
First Gen Hydro Power Corporation, which operates the 112 MW
Pantabangan-Masiway hydroelectric power plants; and FG Bukidnon
Power Corporation, which operates the 1.6 MW Agusan power plant.
FGEN also intends to expand into businesses that complement its
power generation operations. In particular, the company expects
to play a major role in the development of downstream natural gas
transmission and distribution facilities, which is among the
flagship projects of the Department of Energy.
* PHILIPPINES: Government Adjusts Growth Targets, BSP Says
----------------------------------------------------------
The Philippine Government has adjusted the country's growth
targets for this year and next following a continuing and careful
assessment by the Cabinet-level Development Budget Coordination
Committee (DBCC) of the possible effects of adverse global
developments on the domestic economy, Bangko Sentral ng Pilipinas
said in a statement.
"Given the extreme volatility in the global economy, we are taking
a very conservative stance in our economic projections and,
because of this, we have chosen to align our growth targets with
recent external developments that may generate knock-on impact on
our overall economic activity," DBCC Chairman and Budget Secretary
Rolando Andaya said.
In doing this, BSP said DBCC changed this year's target GDP growth
range to between 4.1-4.8% from the previous 5.5-6.4% range
submitted to Congress in August. The DBCC also considered global
economic data regarding projections for 2009 and revised the GDP
growth target for next year to between 3.7-4.7% from the previous
6.1- 7.1% range, which was made before the severe unwinding of the
global financial crisis. These targets are a downward adjustment
from the initial adjustments made in September.
"Against a backdrop of recession expected in some of the world's
largest markets, we have to be realistic with our expectations for
our economy now and in the coming year. Having said that, what we
are projecting is a respectable level of growth that has been made
possible by the economic reforms that our government has
instituted in recent years. Those reforms have helped to make our
economy more diversified and more resilient than before,"
Secretary Andaya added.
National Economic and Development Authority (NEDA) Director
General Ralph Recto said that the Philippine economy expects to
benefit from the increase in government spending on agriculture
and infrastructure. "We also see bright spots in areas such as
halal exports, telecommunications, real estate, utilities, and the
very successful BPO industry that is already expanding as
companies around the world seek more cost-effective outsourcing
alternatives," he said.
Finance Secretary Gary Teves said that the adjustments in the
growth targets will result in a small reduction in government
revenues and a slight increase in expenditures arising from higher
interest payments but he agreed that the conservative approach to
projecting GDP growth is prudent during this period of global
economic uncertainty.
With the change in the growth target, the government revised the
2009 programmed budget deficit to Php102 billion from Php75
billion this year. Secretary Teves said much of this deficit
increase is due largely to "the need for additional government
capital outlay to take up the expected slack in private
investments."
Secretary Teves added that while the Government has had to make
minor adjustments to its fiscal program in view of continued
challenges in the global economy, "our commitment to fiscal reform
and deficit reduction remains unchanged and we will continue to
strike the appropriate balance in meeting these objectives in a
way that will address the real needs of our people and at the same
time maintain fiscal discipline."
In line with the revisions on GDP growth and fiscal program, the
DBCC has also revisited other key macroeconomic indicators.
Export growth has been revised from 5% to between 2-4% in 2008 and
from 7% to 1-3% in 2009 while imports growth is expected to grow
between 10-12% in 2008, which is largely consistent with the
original forecast of 10%. Imports are forecast to grow between 4-
6% in 2009, a revision from the original projection of 10%.
The forecast for the average Peso/USD exchange rate for 2008
remains unchanged at Php42-45 while for 2009, the DBCC's earlier
forecast of Php42-45 has been revised to Php45-48. Inflation
forecasts also remain largely unchanged at 9-11% for this year and
6-8% in 2009 as global oil and food prices have started to
decline.
Commenting on the change in the projection for the Philippine
economy, Bangko Sentral ng Pilipinas (BSP) Deputy Governor
Diwa Guinigundo noted that such is broadly consistent with the
projection of the International Monetary Fund (IMF) which showed a
lower world growth forecast of 2.2% in 2009 from 3%. For the
ASEAN region, the IMF is now projecting a growth rate of 4.2% for
2009.
Secretary Andaya said that the DBCC and the other members of the
Economic Team will continue to closely watch the global economic
situation to ensure that the country's macroeconomic assumptions
and targets are attuned with external developments.
* PHILIPPINES: Bank Lending Continues to Expand in September
------------------------------------------------------------
Outstanding loans of commercial banks including reverse repurchase
agreements or RRPs increased in September by 24.1 percent year-on-
year, growing at the same pace as in August, Bangko Sentral ng
Pilipinas said. Bank lending net of banks' RRP placements with
the BSP accelerated to 24.8 percent in September from 22.1 percent
in August.
Preliminary data for September were obtained from the new system
of bank reporting under the Financial Reporting Package (FRP),
which replaced the Consolidated Statement of Condition (CSOC)
reports. The FRP adopts the detailed classification of the
amended 1994 Philippine Standard Industrial Classification (PSIC)
for international comparability. The FRP also classifies lending
by production activities (which covers 16 economic sectors) and by
household consumption purposes (with three economic categories).
Previously, BSP said, bank reports classified loans into only nine
economic sectors.
Loans for production activities drove the expansion, as these grew
by 22.4 percent in September compared to 19.8 percent in August.
The following production sectors contributed significantly to
lending growth: wholesale and retail trade (which grew by 49.4
percent); agriculture, hunting, and forestry (37.8 percent);
transportation, storage and communication (82.1 percent);
electricity, gas and water (54.4 percent); real estate, renting,
and business services (15.4 percent); and manufacturing (8.5
percent).
The growth of consumption loans also accelerated in September,
rising by 23.4 percent from 20.2 percent in August. Consumption
loan growth came mostly from credit card receivables which
expanded by 26.3 percent, down slightly from 27.0 percent in
August. Auto loans rose by 12.2 percent in September from 10.6
percent in the previous month. The growth of other household
loans accelerated to 29.6 percent from 4.6 percent over the same
period.
BSP Governor Amando M. Tetangco, Jr. said that the BSP monitors
bank lending trends in order to generate an advance indicator on
the direction of future economic activity. He noted that data on
lending indicate that there is sufficient liquidity in the economy
that could support growth despite current tight conditions in
global financial markets.
=================
S I N G A P O R E
=================
* SINGAPORE: Exports Fell 15% in October Amid Slower Global Demand
------------------------------------------------------------------
Singapore's key exports slumped more by a larger-than-expected
margin in October compared to a year ago, as both electronic and
non-electronic exports fell on the back of slower global demand,
Channel NewsAsia reports.
Citing data from International Enterprise Singapore (IE
Singapore), the report says the country's non-oil domestic exports
fell 15 per cent on-year, versus a milder decline of 5.7 per cent
in September.
The report notes that shipment of electronic products contracted
15 per cent on-year. This was due to declines in the shipment of
consumer electronics and parts for integrated circuits.
Meanwhile, the report adds, non-electronic exports also fell 15
per cent, led by reduced shipment of pharmaceuticals, ships and
boats, petrochemicals and primary chemicals.
Exports to Singapore's top 10 markets recorded contractions,
according Channel NewsAsia citing IE Singapore.
================
S R I L A N K A
================
SEYLAN MERCHANT: Fitch Holds 'BB+' National Long-Term Rating
------------------------------------------------------------
Fitch Ratings Lanka has affirmed Seylan Merchant Leasing PLC's
National Long-term rating at 'BB+(lka)'. The Outlook is Stable.
SML's rating reflects its modest financial profile, short
operating history and small asset base. The rating also factors
in the implied support assumed to be available from its ultimate
parent, Seylan Bank PLC (SB, 'BBB+(lka)'/ Stable).
In February 2007, SML obtained a license to operate as a
Registered Finance Company, enabling it to raise fixed and savings
deposits from the public. As a result, deposits increased to 57%
of the funding base at FYE07. Funding from borrowings decreased
to 19% at FYE07 from 75% at FYE06, mainly through the conversion
of a majority of promissory notes - hitherto the main source of
funding - to deposits. The company has satisfied the statutory
liquid assets requirement on deposits since May 2007.
SML's portfolio contracted by 2.6% in FY07 as challenging economic
conditions prompted the company to reduce growth. Leases
dominated its portfolio at 96% at FYE07, contrary to the growth in
hire purchase observed throughout industry. The company's
profitability in terms of ROA decreased to 1.8% in FY07 from 2.3%
in FY06, which was below the sector's 2.3%, due to higher interest
costs and operating expenses.
The gross NPL ratio (NPLs are defined by Fitch Ratings as advances
in arrears for more than three months) increased to 16.8% at FYE07
from 9.6% at FYE06. However, the ratio improved to about 13.6% at
Q308 due to enhanced recovery efforts and infrastructure
implemented in Q108 (13.8% for the sector at June 2008). Since
50% or more of NPLs fall into the three- to- six- months in
arrears category, the ratio is more favourable at the six-month
regulatory threshold. Consequently, at the six-month regulatory
threshold, the gross NPL ratio stood at 7.1% at FYE07 and 9.6% at
Q308 (5.1% for the sector at June 2008).
SML's capital base of LKR375m exceeded the minimum capital
requirement of LKR200m; its core and total capital adequacy ratios
of 20.03%, stood above the minimum 5% and 10% thresholds,
respectively, at FYE07. Equity/assets decreased to 18% at FYE07
from 19.2% at FYE06, affected by a dividend payout of 65%. The
company's solvency measured by net NPL/equity weakened to 67% at
FYE07 from 37.6% at FYE06, but improved to about 51.6% at Q308
(54.1% for the sector at June 2008).
Established in 2000 and listed on the Colombo Stock Exchange in
2005, SML initially operated as a Specialised Leasing Company
(SLC). SML is an 83.95%-owned subsidiary of Seylan Merchant Bank
PLC, which is in turn a 51.84% subsidiary of SB.
TRADE AND FINANCE: Fitch Keeps 'BB+' National Long-Term Rating
--------------------------------------------------------------
Fitch Ratings Lanka has affirmed Sri Lanka's Trade Finance &
Investments Ltd's National Long-term rating at 'BB+(lka)'. The
Outlook is Stable.
TFI's rating factors its high capitalization in terms of its size
of operations and good profitability. The rating is constrained
by TFI's small asset base, limited product diversity and its
narrow funding base.
TFI has been in operation for over 30 years and has established a
franchise in financing (lease and hire purchase) mainly three-
wheelers (also called auto-rickshaws). Three-wheelers accounted
for approximately 90% of assets financed at the six-month period
ended September 2008 (H109). In 2007, due to emission concerns,
the government of Sri Lanka imposed a ban on the imports of two-
stroke Bajaj three-wheelers with effect from early 2008, with a
further ban on spare part imports from 2011; this restricted fresh
imports to just the four-stroke three-wheelers. Despite the ban,
the second hand market for the two-stroke three wheelers remains
robust due to perceived cost considerations in maintenance vis-a-
vis the four-stroke engine and significant market stocks of spare
parts. Fitch expects this demand to ultimately decline and be
replaced by the Four Stroke product. Given this context, TFI's
loan book shrank by 4.7% in H109, with incremental lending coming
from repeat customers. As such, Fitch will monitor the
development of the second hand four stroke market and TFI's
incremental growth with respect to financing such, and any
progress with regard to lending diversification.
ROA at 5.8% in H109 (FYE08: 6.2%) was well above the sector
average. Net interest margins are expected to tighten somewhat
due to competitive pressure but remain high (H109: 25%), due to
the high proportion of equity.
Historically, NPLs at the three-month level have been high, with
gross NPLs/gross loans of 29% at end-H109, partly reflecting the
risk profile of the target clientele and the company's business
strategy. However, NPL ageing was satisfactory, with 73% of NPLs
falling into the three to six months in arrears bucket, for which
regulatory provisioning is not required. Provision coverage for
NPLs was 20% at end-H109, while provision coverage of NPLs in
arrears over six months was 72%. The net NPL/equity ratio was
good at 20% at end-H109 (2% with six month NPLs), which was
significantly better than the sector average.
Funding is predominantly from equity, deposits and loans from its
shareholders and related parties. Equity/assets ratio was high at
62% at end-H108, which was well above the sector average. Capital
is expected to remain comfortable, in light of the good
profitability and the high earnings retention policy.
TFI is a finance company established in 1978 with an asset base of
LKR458m at end-H109. The Cooray family (owners of the Jetwing
Group) acquired TFI in the early 1990s, and currently owns around
93%.
===========
T A I W A N
===========
JIH SUN: Fitch Changes Rating Outlook to Stable From Negative
-------------------------------------------------------------
Fitch Ratings has revised the Long-term foreign currency Issuer
Default Rating and National Long-term rating Outlooks on Jih Sun
Group, namely Jih Sun Financial Holding Co., Ltd and its
subsidiaries, Jih Sun International Bank and Jih Sun Securities
Corp., Ltd to Negative from Stable. At the same time, the agency
has downgraded most of Jih Sun Group's ratings, including JSH's
subordinated debt issuance:
JSH:
-- Long-term foreign currency IDR downgraded to 'BB' from 'BB+';
-- Short-term foreign currency IDR affirmed at 'B';
-- National Long-term rating downgraded to 'BBB+(twn)' from
'A-(twn)' (A minus(twn));
-- National Short-term rating affirmed at 'F2 (twn)';
-- Individual rating: downgraded to 'D/E' from 'D';
-- Support rating affirmed at '5';
-- Support Rating Floor affirmed at 'NF'; and
-- Senior Unsecured Debt rating downgraded to 'BBB(twn)' from
'BBB+(twn)'.
JSIB:
-- Long-term foreign currency IDR downgraded to 'BB' from 'BB+';
-- Short-term foreign currency IDR affirmed at 'B';
-- National Long-term rating downgraded to 'BBB+(twn)' from
'A-(twn)' (A minus(twn));
-- National Short-term rating affirmed at 'F2 (twn)';
-- Individual rating downgraded to 'D/E' from 'D'; and
-- Support rating affirmed at '3'.
JSS:
-- Long-term foreign currency IDR downgraded to 'BB+' from
'BBB-' (BBB minus);
-- Short-term foreign currency IDR downgraded to 'B' from 'F3';
-- National Long-term rating downgraded to 'A-(twn)'
(A minus(twn)) from 'A(twn)';
-- National Short-term rating downgraded to 'F2(twn)' from
'F1(twn)';
-- Individual rating affirmed at 'C/D';
-- Support rating affirmed at '5'; and
-- Support Rating Floor affirmed at 'NF'.
The downgrade of Jih Sun Group's ratings reflects the
deterioration of its already weak profitability and a prolonged
weakness in asset quality of its banking subsidiary JSIB, which is
putting pressure on the capital strength of the group. Fitch
views the improvement in earnings and asset quality at JSIB, or
the injection of fresh capital to be positive factors to improve
credit ratings. However, a substantial loss at JSIB, resulting in
a severe deterioration in JSH's capitalisation, would lead to a
further rating downgrade.
JSIB's ratings are underpinned by the group support from its major
earnings contributor, JSS. Its Individual rating considers the
continued deterioration of its already poor profitability as well
as weak asset quality and a weakening capital base while the bank
manages to maintain a satisfactory liquidity position. Weakened
core earnings and increased provision charges amid the adverse
economic environment continued to undermine its profitability in
H108. The company's loan book remained relatively weak, albeit
improved; its NPL ratio was relatively high at 3.7% (Industry
average: 1.5%) while its loan loss reserve coverage ratio appeared
low at only 35% at end-H108 (2007: 26.8%). JSIB reported an
acceptable Tier 1 ratio of 7.9% and CAR of 8.8% at end-H108. The
ratio would decline substantially if a lower NPL ratio and higher
loan loss reserves for NPLs were incorporated. The company has a
satisfactory liquidity position, evidenced in its relatively high
liquidity reserve and low loan-to-deposit ratio.
JSS's IDR is negatively impacted by the continuous capital needs
by its bank affiliate JSIB. Its Individual rating nonetheless
reflects its consistent profitability, reasonably controlled risk
exposures, adequate capital position and liquid balance sheet but
it also considers the records of its volatile earnings streams
associated with the often erratic capital market movements. JSS
delivered positive ROE of 3.1% in H108 despite the inclement stock
market conditions. Fitch expects limited risk to arise from its
investment portfolio as JSS has substantially managed down its
proprietary trading positions, in which stock investments
represented only 15%. The company is adequately capitalized with
CAR of 405% at end-H108.
There has been large speculation about a possible merger between
Fubon Financial Holdings and JSH. Fubon is one of the most
comprehensive financial services providers in Taiwan with
operations across the banking, insurance, securities and asset
management sectors. If the merger with Fubon materialises, Fitch
believes JSH could benefit from the enlarged franchise and
potential support from Fubon on liquidity and capitalisation,
pending Fubon's eventual capital allocations, and hence likely
improve JSH and its subsidiaries' rating levels.
Established in February 2002, JSH is a securities firm-centric
financial holding company with several subsidiaries, including
large securities firm, JSS and JSIB. JSS was ranked the fourth
largest securities firms by stock brokerage (4.0%) at end-H108 and
JSIB is a small bank with a market share of 0.9% by deposits at
end-August 2008.
TAISHIN CBO: Fitch Downgrades Ratings on Commercial Papers
----------------------------------------------------------
Fitch Ratings has downgraded the New Taiwan Dollar denominated
commercial papers, issued by Taishin CBO Special Purpose Trust 4
to 'C(twn)' from 'F2(twn)'. Simultaneously, Fitch has withdrawn
the ratings assigned to the CP issued by Taishin CBO SPT 1, 2, 3,
4 and 5:
-- NT$2.4bn Taishin CBO SPT1 CP affirmed at 'C(twn)', withdrawn;
-- NT$3.7bn Taishin CBO SPT2 CP affirmed at 'C(twn)', withdrawn;
-- NT$2.6bn Taishin CBO SPT3 CP affirmed at 'C(twn)', withdrawn;
-- NT$3.0bn Taishin CBO SPT4 CP downgraded to 'C(twn)' from
'F2(twn)', removed from Rating Watch Negative (RWN),
withdrawn; and
-- NT$2.3bn Taishin CBO SPT5 CP affirmed at 'C(twn)', withdrawn.
Each Taishin CBO is a bankruptcy-remote special purpose trust,
established in 2005 and 2006 to fund a onetime purchase of NTD
corporate bonds and one USD synthetic CDO through an asset-backed
programme.
These rating actions follow the Rating Action Commentary published
Nov. 13, 2008, where the rating actions are outlined:
-- Beryl Finance Limited Series 2005-10, representing 63% of
SPT1's outstanding collateral, downgraded to 'C' from 'CCC',
withdrawn;
-- Beryl Finance Limited Series 2005-11, representing 56% of
SPT2's outstanding collateral, downgraded to 'C' from 'CCC',
withdrawn;
-- Beryl Finance Limited Series 2005-12, representing 50% of
SPT3's outstanding collateral, downgraded to 'C' from 'CCC',
withdrawn;
-- Beryl Finance Limited Series 2005-14, representing 68% of
SPT4's outstanding collateral, downgraded to 'C' from 'AA',
removed from RWN, withdrawn;
-- Beryl Finance Limited Series 2005-15, representing 65% of the
SPT5's outstanding collateral, downgraded to 'C' from 'CCC',
withdrawn.
Beryl Finance Limited Series 2005-10 and 2005-15 have missed a
coupon payment, which has resulted in SPT1 and SPT5's failure to
make a USD payment to the Cross Currency Swap counterparty of both
transactions, Mega International Commercial Bank Company Limited.
This has triggered a Stop-Issuance Event for SPT1 and SPT5. For
the remainder of the Beryl synthetic CDOs mentioned above, no
further coupon payments are expected to be made when they fall
due. Thus, Fitch expects that Stop-Issuance Events will occur in
SPT2, SPT3 and SPT4 in the following weeks.
Fitch highlights that the recovery prospects for the Beryl Finance
CDOs are likely to vary, partly depending on the charged asset.
The charged asset of Beryl Finance Limited Series 2005-10, 2005-
11, 2005-12 and 2005-15 is a senior unsecured obligation of Lehman
Brothers Holdings Inc. (withdrawn at 'CCC/RR4' on Oct. 27, 2008),
whilst the charged asset of Beryl Finance Limited Series 2005-14
is a senior unsecured obligation of Principal Financial Group
(rated 'A+/Stable Outlook').
The trustee, Land Bank of Taiwan, following a meeting of the
existing CP investors held on October 13, 2008, has decided to
terminate these five CBO transactions. As a result, the current
CP noteholders have legal claim over the respective outstanding
collateral. The ultimate recovery rate of the outstanding CP in
each transaction is subject to the realized value of the remaining
collateral, the cost of unwinding the swaps and the distribution
priority of the CP in the post-enforcement waterfall. The
recovery rate of the outstanding CP in SPT 4 is currently expected
to be higher than the recovery rate of SPT1, 2, 3 and 5.
WATERLAND FINANCIAL: Fitch Affirms All Ratings; Outlook Negative
----------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of Taiwan's Waterland
Financial Holdings and its subsidiaries International Bills
Finance Corporation and Waterland Securities Corporation.
Simultaneously, the agency has revised the Outlooks on WFH and
WSC's Long-term foreign currency Issuer Default Ratings and
National Long-term ratings to Negative from Stable. This follows
Fitch's revision of IBF's (the group's principal subsidiary) IDR
and National Long-term rating Outlooks to Negative from Stable on
Oct. 14, 2008.
The Outlook revision reflects Fitch's concern that the subsequent
credit losses arising from IBF's ABCP underwriting position (of
which NT$4.3 billion relates to relatively high-risk synthetic
CDOs) and the economic slowdown could negatively affect IBF and
the group's new business writing capacity and financial
performance in 2008 - 2009. However, the agency notes that even
after assuming very hefty losses on the ABCPs, IBF and the group's
overall credit profile, particularly their liquidity and capital
adequacy, remains quite comfortable. The agency may downgrade IBF
and the group's IDRs if there is reduced liquidity and asset
quality and/or severely weakened capitalization relative to its
risk profile. On the other hand, the agency may revise IBF and
the group's Outlooks to Stable if they are able to demonstrate
consistent improvement in earnings quality and maintenance of
solid capitalisation and liquidity.
WFH's ratings reflect its satisfactory capital position, limited
leverage and adequate liquidity; its IDRs are mainly offset by its
relatively weak profitability and vulnerability to any capital and
money market disruptions. Fitch expects WFH to incur a net loss
in 2008 as its main subsidiary IBF, booked an impairment loss of
NT$2.15 billion in October 2008, to reflect the weaker credit
profile of the ABCP programmes. The company has adequate
liquidity; the cash dividend inflows from subsidiaries are
sufficient to cover its stand-alone operating expenses and
interest payments. WFH's sum-of-parts capital adequacy ratio was
159.5% at end-June 2008, much higher than the minimal regulatory
requirement of 100%, and its double leverage ratio remained
limited at 109.4% at end-June 2008.
IBF's ratings reflect its solid capitalisation, good asset quality
as well as adequate liquidity. Its relatively weak earning
performance and vulnerability to any market disruptions due to the
economic slowdown are the major offsetting factors. The company
reported a net loss of NT$1.3 billion for the first 10 months of
2008 primarily due to the ABCP impairment losses. Following the
credit losses from ABCP programmes, IBF notably decreased its
guarantee offering to maintain a comfortable capital buffer. Its
latest reported CAR has risen to 15.2% at end-October 2008 from
12.8% at end-2007. Meanwhile, IBF's asset quality is good and its
total impairment ratio remained stable at 3.5% at end-June 2008;
the total problem exposures were sufficiently covered by its
reserves and good-quality underlying collateral in real estate and
listed stocks. The company has adequate liquidity with its long-
term funding comfortably covering its less liquid assets and ABCP
position.
WSC's IDRs are mainly based on group support and its Individual
rating primarily reflects its good capital and liquidity, while
its relatively weak and volatile profitability and lack of scale
are the major offsetting factors. The company has worked on
raising its equity brokerage market shares and the productivity of
its brokerage distribution channel. On November 11, 2008, WSC
announced its acquisition of small local broker, Great Wall
Securities (average brokerage market share of around 0.5%), aiming
to boost its equity brokerage market share to above 2%. The
acquisition had a very limited financial impact to the company.
It reported a net loss of NT$342 million in the first 9 months of
2008 as the sharp market decline since H108 resulted in an
unfavourable trading performance. WSC has a liquid balance sheet
with current assets/current liability ratio of 152% at end-June
2008 and is well capitalised; its capital adequacy ratio stood at
527% at end-June 2008, markedly above the regulatory requirement
of 150%.
Established in March 2002, WFH is the only financial holding group
in Taiwan whose core business is bills finance. It is the
smallest of the 15 domestic financial holding companies by
consolidated assets (NT$231 billion) at end-June 2008. IBF is a
wholly-owned subsidiary of WFH and is the second largest bills
finance company by assets (22% of the sector, including
guarantees, at end-August 2008) in Taiwan. WSC had a 1.4% market
share of equity brokerage and runs 33 branches in Taiwan at end-
H108.
The affirmed ratings and revised Outlooks are:
WFH:
-- Long-term foreign currency IDR affirmed at 'BBB-'
(BBB minus); Outlook revised to Negative from Stable;
-- Short-term foreign currency IDR affirmed at 'F3';
-- National Long-term rating affirmed at 'A(twn)'; Outlook
revised to Negative from Stable;
-- National Short-term rating affirmed at 'F1(twn)';
-- Individual rating affirmed at 'C';
-- Support affirmed at '5'; and
-- Support Rating Floor affirmed at 'NF'.
IBF:
-- Long-term foreign currency IDR affirmed at 'BBB'; Outlook
Negative;
-- Short-term foreign currency IDR affirmed at 'F3';
-- National Long-term rating affirmed at 'A+(twn)'; Outlook
Negative;
-- National Short-term rating affirmed at 'F1(twn)';
-- Individual rating affirmed at 'C';
-- Support affirmed at '4'; and
-- Support Rating Floor affirmed at 'B+'.
WSC:
-- Long-term foreign currency IDR affirmed at 'BBB-'
(BBB minus); Outlook revised to Negative from Stable;
-- Short-term foreign currency IDR affirmed at 'F3';
-- National Long-term rating affirmed at 'A(twn)'; Outlook
revised to Negative from Stable;
-- National Short-term rating affirmed at 'F1(twn)';
-- Individual rating affirmed at 'D'; and
-- Support affirmed at '2'.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week November 10 to November 14, 2008
-------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA &
NEW ZEALAND
-----------
Ainsworth Game Technology Ltd 8.000% 12/31/09 AUD 0.65
A&R Whitcoulls Group 9.500% 12/15/10 NZD 10.65
Allco Hit Ltd 9.000% 08/17/09 AUD 24.10
Alumna Finance 2.000% 05/16/13 USD 54.77
Antares Energy 10.000% 10/31/13 AUD 0.75
Babcock & Brown Pty Ltd 8.500% 11/17/09 NZD 44.69
BBI Ntwrks NZ Limited 8.000% 11/30/12 NZD 30.00
Becton Property Group 9.500% 06/30/10 AUD 0.35
Bounty Industries Limited 10.000% 06/30/10 AUD 0.04
Capital Properties NZ Ltd 8.500% 04/15/09 NZD 13.50
Capital Properties NZ Ltd 8.000% 04/15/10 NZD 13.50
Carpal Aluminum 10.000% 03/29/12 AUD 65.10
China Century 12.000% 09/30/10 AUD 0.70
Cit Group Au Limited 6.000% 03/03/11 NZD 55.23
Djerriwarrh Investments Ltd 6.500% 09/30/09 AUD 3.96
FBG Finance Limited 5.875% 06/15/35 USD 72.53
Fletcher Building Ltd 7.550% 03/15/11 NZD 9.40
Fletcher Building Ltd 7.800% 03/15/09 NZD 10.50
Ge Cap Australia 6.000% 04/15/15 AUD 73.06
Ge Cap Australia 6.000% 03/15/19 AUD 60.08
Gpt Management 6.500% 08/22/13 AUD 73.97
Heemskirk Consolidated
Limited 8.000% 04/29/11 AUD 2.20
Infrastructure & Utilities 8.500% 09/15/13 NZD 10.50
Insurance Australia 5.625% 12/21/26 GBP 73.44
Jpm Au Enf Nom 1 3.500% 06/30/10 USD 1.41
Lane Cove Tunnel 6.800% 12/09/15 AUD 60.76
LongReach Group Limited 10.000% 10/31/08 AUD 0.36
Nylex Ltd. 10.000% 12/08/09 AUD 1.11
Macquarie Bank 6.500% 05/31/17 AUD 42.65
Macquarie Comm 2.500% 08/23/13 USD 69.63
Marac Finance 10.500% 07/15/13 NZD 1.02
Metal Storm Ltd 10.000% 09/01/09 AUD 0.09
Minerals Corp 10.500% 03/31/09 AUD 0.20
Paladin Energy 4.500% 12/15/11 USD 46.81
Paladin Energy 5.000% 03/11/13 USD 44.51
Publ & Broad Fin 6.280% 05/06/11 AUD 8.59
South Canterbury 10.430% 12/15/12 NZD 1.01
St. Laurence Prop 9.250% 07/15/01 NZD 72.93
Suncorp Metway I 6.750% 09/23/24 AUD 72.47
Suncorp Metway I 6.750% 10/06/26 AUD 71.90
Sun Resources NL 12.000% 06/30/11 AUD 0.25
TrustPower Ltd 8.300% 12/15/08 NZD 10.00
TrustPower Ltd 8.500% 09/15/12 NZD 8.36
TrustPower Ltd 8.500% 03/15/14 NZD 8.50
Westfield Fin 5.500% 06/27/17 GBP 72.12
CHINA
-----
China Govt Bond 4.860% 08/10/14 CNY 0.00
Jianxi Copper 1.000% 09/22/16 CNY 69.13
HONG KONG
---------
Chinatrust Comm 5.625% 03/29/49 USD 73.52
Noble Group Ltd 6.625% 03/17/15 USD 39.80
Noble Group Ltd 6.625% 03/17/15 USD 72.62
Respacrcs Funding 8.000% 12/29/49 USD 26.95
Treasure Source 2.000% 05/23/11 HKD 66.57
INDIA
-----
Amtek Auto 0.500% 06/03/10 USD 71.20
Astrazeneca Phar 8.000% 01/11/09 INR 25.00
Hindustan Cons 10.000% 10/25/09 INR 33.35
JCT Limited 2.500% 04/08/11 USD 69.25
State Bank India 6.439% 02/28/49 USD 45.77
Tata Motors 1.000% 04/27/11 USD 73.45
Tata Steel Limited 1.000% 09/05/12 USD 67.36
UTI Bank Limited 7.250% 08/12/21 USD 62.10
Videocon Industry 4.500% 07/25/11 USD 54.75
INDONESIA
---------
Indonesia (Rep) 6.625 02/17/37 USD 43.50
Indonesia (Rep) 6.750 03/10/14 USD 66.50
Indonesia (Rep) 6.875 01/17/18 USD 58.58
Indonesia (Rep) 7.750 01/17/18 USD 56.00
Indonesia (Rep) 7.250 04/20/15 USD 65.00
Indonesia (Rep) 7.500 01/15/16 USD 69.28
Indonesia (Rep) 7.750 01/17/38 USD 58.50
Indonesia (Rep) 8.500 10/12/35 USD 53.85
Indonesia (Rep) 8.500 10/12/35 USD 54.57
Indonesia Government 9.000% 09/15/13 IDR 74.78
Indonesia Government 9.000% 09/15/18 IDR 62.52
Indonesia Government 9.500% 06/15/15 IDR 71.32
Indonesia Government 9.500% 07/15/23 IDR 60.20
Indonesia Government 9.750% 05/15/37 IDR 57.49
Indonesia Government 10.000% 07/15/17 IDR 68.75
Indonesia Government 10.000% 09/15/24 IDR 61.90
Indonesia Government 10.000% 02/15/28 IDR 65.58
Indonesia Government 10.250% 07/15/22 IDR 64.83
Indonesia Government 10.250% 07/15/27 IDR 62.57
Indonesia Government 10.500% 07/15/38 IDR 60.60
Indonesia Government 10.750% 05/15/16 IDR 74.79
Indonesia Government 11.000% 11/15/20 IDR 69.89
Indonesia Government 11.000% 09/15/25 IDR 67.15
Indonesia Government 11.500% 09/15/19 IDR 73.58
Indonesia Government 11.600% 08/15/18 IDR 74.61
Indonesia Government 11.750% 08/15/23 IDR 71.67
Indonesia Government 12.000% 09/15/26 IDR 72.56
JAPAN
-----
Belluna Co Limited 1.100% 03/31/12 JPY 72.62
Chuo Mitsui 5.506% 12/29/49 USD 69.79
Csk Corporation 0.250% 09/3013 JPY 75.00
ES-Con Japan Limited 3.260% 05/10/10 JPY 45.12
Fukoku Mutual 4.500% 09/28/25 EUR 70.23
Hiroshima Bank 1.890 09/20/17 JPY 67.73
Resona Bank 4.125% 09/29/49 EUR 73.16
Resona Bank 5.850% 09/29/49 EUR 61.70
Shinsei Bank Ltd. 2.010% 10/20/17 JPY 67.73
Shinsei Bank Ltd. 3.750% 02/23/16 GBP 48.75
Shinsei Bank Ltd. 5.625% 12/29/49 GBP 30.24
Sumitomo Mitsui 4.375% 07/29/49 EUR 62.87
Sumitomo Mitsui 5.625% 07/29/49 EUR 65.91
KOREA
-----
Exp-Imp Bk Korea 5.375% 10/04/16 USD 72.65
GS Caltex Corp 5.500% 04/24/17 KRW 70.75
GS Caltex Corp 5.500% 10/15/15 KRW 70.76
GS Caltex Corp 5.500% 04/24/17 KRW 72.03
Korea Dev. Bank 7.310% 11/08/21 KRW 43.30
Korea Dev. Bank 7.350% 10/27/21 KRW 43.40
Korea Dev. Bank 7.400% 10/27/21 KRW 43.40
Korea Dev. Bank 7.400% 11/02/21 KRW 43.35
Korea Dev. Bank 7.450% 10/31/21 KRW 43.37
Korea Dev. Bank 8.450% 12/15/26 KRW 70.22
Hanarotelecom 7.000% 02/01/12 USD 57.52
Hynix Semi Inc. 7.875% 06/27/17 USD 46.38
Rep of Korea 5.625% 11/03/25 USD 64.71
Woori Bank 6.208% 05/02/37 USD 56.57
MALAYSIA
--------
Advance Synergy Berhad 2.000% 01/26/18 MYR 0.03
Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.87
Berjaya Land Bhd 5.000% 12/30/09 MYR 3.50
Cagamas Berhad 3.640% 05/05/09 MYR 4.07
Cheating Capital 2.000% 07/05/12 USD 71.00
Eastern & Orient 8.000% 07/25/11 MYR 0.65
EG Industries 5.000% 06/16/10 MYR 0.16
Greatpac Holdings 2.000% 12/11/08 MYR 0.11
Huat Lai Resources 5.000% 03/28/10 MYR 0.45
Insas Berhad 8.000% 04/19/09 MYR 0.28
Kamdar Group Bhd 3.000% 11/09/09 MYR 0.17
Kretam Holdings Bhd 1.000% 08/10/10 MYR 0.70
Kumpulan Jetson Berhad 5.000% 11/27/12 MYR 0.45
LBS Bina Group Bhd 4.000% 12/31/08 MYR 0.23
Mithril Bhd 3.000% 04/05/12 MYR 0.50
Mithril Bhd 8.000% 04/05/09 MYR 0.11
Nam Fatt Corp 2.000% 06/24/11 MYR 0.25
Pelikan International 3.000% 04/08/10 MYR 1.10
Pilecon Engineering Bhd 5.000% 12/19/11 MYR 0.08
Plus Spv Bhd 2.000% 06/27/17 MYR 70.31
Plus Spv Bhd 2.000% 06/27/18 MYR 67.12
Plus Spv Bhd 2.000% 06/27/19 MYR 68.32
Puncak Niaga Holdings Bhd 2.500% 11/18/16 MYR 0.77
Rhythm Consolidated Berhad 5.000% 12/17/08 MYR 0.06
Rubberex Corporation Berhad 4.000% 08/14/12 MYR 0.63
Tenaga Nasional Bhd 3.050% 05/10/09 MYR 0.91
Tradewinds Corp. 2.000% 02/08/12 MYR 0.69
Wah Seong Corp. 3.000% 05/21/12 MYR 2.01
Wijaya Baru Global Berhad 7.000% 09/17/12 MYR 0.33
YTL Cement Bhd 4.000% 11/10/15 MYR 1.10
PHILIPPINES
-----------
First Gen Corp 2.500% 02/11/13 USD 53.75
Philippines (Rep) 6.375% 01/15/32 USD 59.00
Philippines (Rep) 7.500% 09/25/24 USD 67.50
Philippines (Rep) 7.750% 01/14/31 USD 65.50
National Power Corporation 6.875% 11/02/16 USD 73.81
National Power Corporation 6.875% 11/02/16 USD 71.09
SINGAPORE
---------
Capitaland Ltd. 2.100% 11/15/16 SGD 57.87
Capitaland Ltd. 2.950% 06/20/22 SGD 51.81
Capitaland Trust 1.000% 07/14/31 SGD 65.50
Flextronics International 6.250% 11/15/14 USD 74.09
Hynix Semiconductor Inc. 4.500% 12/14/12 USD 36.75
ICICI Bank Limited 5.875% 10/20/11 USD 74.28
Olam International Limited 1.000% 07/03/13 SGD 48.81
Sengkang Mall 8.000% 11/20/12 SGD 1.65
Wah Hai S Pte 5.000% 06/29/15 USD 69.13
SRI LANKA
---------
Sri Lanka Govt 7.500% 08/01/13 LKR 64.72
Sri Lanka Govt 7.500% 08/15/18 LKR 54.89
Sri Lanka Govt 7.500% 11/01/13 LKR 64.00
Sri Lanka Govt 6.850% 04/15/12 LKR 68.84
Sri Lanka Govt 6.850% 10/15/12 LKR 65.91
Sri Lanka Govt 7.000% 08/01/11 LKR 73.87
Sri Lanka Govt 7.000% 10/15/11 LKR 72.43
Sri Lanka Govt 7.000% 10/01/23 LKR 47.08
Sri Lanka Govt 8.500% 01/15/13 LKR 69.37
Sri Lanka Govt 8.500% 02/01/18 LKR 60.08
Sri Lanka Govt 8.500% 07/15/13 LKR 67.86
Sri Lanka Govt 8.500% 07/15/18 LKR 59.48
Sri Lanka Govt 10.500% 04/01/13 LKR 74.46
TAIWAN
------
Cathay United 5.500% 10/05/20 USD 72.99
THAILAND
--------
Italian-Thai Dey 4.500% 06/10/13 USD 44.50
Ptt Pcl 5.875% 08/03/35 USD 71.71
VIETNAM
-------
Vietnam (Rep of) 6.875% 01/15/16 USD 67.25
*********
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. Pius Xerxes V. Tovilla, Valerie C. Udtuhan,
Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante,
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 ***