/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/081211.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, December 11, 2008, Vol. 11, No. 246 Headlines A U S T R A L I A ABC LEARNING: To Close 55 Centres; Gets Gov't. Funds BAKHA NOMINEES: Placed Under Voluntary Liquidation CITY PACIFIC: Settles Sale Contract Dispute COLLECTIONS PTY: Members and Creditors Hear Wind-Up Report DAVCOL ENTERPRISES: Court Enters Wind-Up Order FAIRFAX MEDIA: Names Brian McCarthy as Chief Executive Officer FMA HOLDINGS: Inability to Pay Debts Prompts Wind-Up FUTURE INVESTMENTS: Members and Creditors Receive Wind-Up Report GRAVITYWELL PTY: Placed Under Voluntary Liquidation LANE COVE: S&P Rating on AU$1.14 Bil. Senior Bonds Tumbles to 'D' MACQUARIE OFFICE: Seeks to Raise AU$500 Million MAXIMUN PTY: Members and Creditors Receive Wind-Up Report MINCOR RESOURCES: Expects 1H Loss After Metal Prices Plunged NATIONWIDE STATIONERS: Inability to Pay Debts Prompts Wind-Up MTM COLLECTIONS: Members and Creditors Hear Wind-Up Report NORTHWEST FRESH: Placed Under Voluntary Liquidation OZ MINERALS: Faces IMF (Australia) Funded Class Action PESTRUCCI GREGSON: Declares Interim Ordinary Dividend SMART 2008-3: Moody's Assigns Low-B Ratings on Two Note Classes SMART PANEL: Commences Liquidation Proceedings TAYLOR SCREENS: Court Enters Wind-Up Order TOPLISS ENTERTAINMENT: Members and Creditors Hear Wind-Up Report WHITES MACROB: Members Receive Wind-Up Report C H I N A CHINA CONSTRUCTION: To Open First Branch in U.S. SINOPEC CORP: Raises Proven Reserves by 16% in 2008 H O N G K O N G DANASIA LIMITED: Inability to Pay Debts Prompts Wind-Up GRANDSUIT MACHINERY: Appoints Chan Man Chung as Liquidator KARJADE PROPERTIES: Creditors' Proofs of Debt Due on January 8 KONICA MINOLTA: Lam and Toohey Cease to Act as Liquidators PEC INTERNATIONAL: Derek and Haughey Cease to Act as Liquidators PRELOTUS DEVELOPMENT: Members' Final Meeting Set for January 20 REDWOOD INTERNATIONAL: Shareholders' Final Meeting Set for Jan. 8 THE WHITNEY: Creditors' Proofs of Debt Due on December 24 I N D I A BANGALORE ELEVATED: CRISIL Rates Rs.6.0 Bil. Term Loan at 'BB' WESTERN UP: CRISIL Rates Rs.3.80 Bil. Term Loan at 'BB-' * Indian Small Debt Funds Face Concentration Risk, CRISIL Says I N D O N E S I A INDOVER BANK: Declared Bankrupt PT BANK: Fitch Affirms Long-Term Issuer Default Ratings at 'BB' J A P A N CITIGROUP INC: To Cut 1,000 Jobs at Nikko Cordial JAPAN GENERAL: To Pay JPY1 Mil. Each to 53 Students MITSUBISHI MOTORS: Plans to Halt Illinois Plant for Seven Weeks MITSUBISHI MOTORS: To Recall 12,985 Vehicles in China K O R E A KOOKMIN BANK: May Close or Merge 60 Branches M A L A Y S I A RANHILL BHD: S&P Affirms 'B' Corporate Credit Rating; Outlook Neg. M O N G O L I A * Fitch Affirms Mongolia's 'B+' Currency Issuer Default Ratings N E W Z E A L A N D AIR NEW ZEALAND: Buys Stake in Australian Firm V3 CONCOURSE LTD: Creditors' Proofs of Debt Due on December 15 CTR2 LTD: Court to Hear Wind-Up Petition on December 15 ING GROEP: To Close New Zealand Funds, Bloomberg Says GLENN CONROY: Court to Hear Wind-Up Petition on December 17 GRUN-GREEN PRODUCTS: Commences Liquidation Proceedings INTREPID ENTERPRISES: Creditors' Proofs of Debt Due on December 19 LIVING ON: Court to Hear Wind-Up Petition on December 15 LOVITT'S NZ: Wind-Up Petition Hearing Set for December 15 MODERN PAVING: Subject to CIR's Wind-Up Petition ONEHUNGA INVESTMENTS: Court Hears Wind-Up Petition PLASTIC TREATMENTS: Creditors' Proofs of Debt Due on December 19 PRIVATE PROPERTY: Wind-Up Petition Hearing Set for December 17 ROBERT BROWN: Court Hears Wind-Up Petition SILVER FERN: Breaches Banking Covenants THE BBG: Wind-Up Petition Hearing Set for December 19 THRIVE PROPERTIES: Appoints Madsen-Ries and Vance as Liquidators WALKER SOMERVILLE: Court to Hear Wind-Up Petition on December 17 * NEW ZEALAND: Terms of Trade Fall 2.3% in September Quarter P H I L I P P I N E S SAN MIGUEL: Inks Option Agreement to Buy 50.1% Stake in Petron SAN MIGUEL: Moody's Changes Outlook on 'Ba2' CFR to Negative * PHILIPPINES: Nat'l. Gov't. Debt Reaches PHP4.1 Tril. in Sept. S I N G A P O R E AXS-ONE INC: Sells US$1.1MM Convertible Promissory Notes, Warrants LINGUAPHONE SINGAPORE: Placed Under Voluntary Liquidation NETTEST PTE: Creditors' Proofs of Debt Due on January 5 SAGAWA EXPRESS: Creditors' Proofs of Debt Due on January 5 TRIBOND TRADING: Creditors' Proofs of Debt Due on January 5 T A I W A N TA CHONG: Fitch Junks Ratings on NTD4.04 Billion Notes T H A I L A N D TMB BANK: S&P Keeps 'BB+/B' Counterparty Credit Rating X X X X X X X X * Former Chrysler Chief Opposes Ouster of Big 3 CEOs - - - - - ================= A U S T R A L I A ================= ABC LEARNING: To Close 55 Centres; Gets Gov't. Funds ---------------------------------------------------- ABC Learning Centres Ltd.'s receiver, Chris Honey of McGrathNicol, disclosed that a further 241 centres are unviable under the current business model but will trade into 2009 under an arrangement with the Australian government. Under the plan, 720 centres will remain within the ABC Learning Group and 55 will close and be consolidated into nearby ABC centres. New ABC Learning Group The new ABC Learning Group will comprise: -- An additional 64 centres that will continue trading into 2009 as part of the ABC Learning Group. This number is in addition to the previously announced 656 ongoing centres, bringing the total number of centres trading as normal into 2009 to 720 centres. -- A further 55 ABC Learning Centres that will close and be consolidated into the above group of ongoing centres. All children at these centres will be offered places at ABC centres, where there is additional capacity and which are within an average radius of 2.5km. In addition, the receivers are confident that they can redeploy approximately 80% of staff from these closing centres to nearby centres that are continuing into the New Year. "With the support of ABC Learning Group's banks and the Federal Government, we have devised a recovery plan to provide childcare places for every ABC family into 2009," Mr. Honey said. "Today we are in a much better position than we could ever have imagined just four weeks ago when we were first appointed as Receivers and Managers. "We can now shift our focus to transitioning the new ABC Learning Group business out of receivership in 2009. "We have undertaken a detailed review of the consolidating centres and identified capacity at neighbouring centres. We will work closely with parents to ensure their child's new ABC centre is as close as possible to the previous location. "I appreciate this solution is not perfect, as some children will need to move to other centres, however we have sought to minimize the impact on families and consider it is the best outcome in the circumstances," Mr. Honey said. Mr. Honey added that he would continue to work closely with the Government on the issue of employee entitlements. "I can confirm that around 80 per cent of centre staff at the consolidating centres will be able to be redeployed to nearby continuing centres to ensure the ABC Learning Group maintains the highest quality levels of care," he said. Centres Continuing Outside ABC Learning Group Mr. Honey said, the review process has found that 241 centres are not viable under ABC's business model and therefore cannot be part of an ongoing, sustainable ABC business. It is possible that some of these centres could be profitable and could also be transitioned out of receivership if operated under an alternative business model. These centres will continue to trade into 2009 under an arrangement to be announced by the Government later today. "We are extremely appreciative of the ongoing support of the Australian Government throughout this difficult process," Mr. Honey said. Government Funding Tim Smith at Bloomberg News reports that Australia's government will spend AU$34 million (US$22 million) to fund daycare for about 20,000 children next year after receivers of ABC Learning Centres Ltd. said almost one-quarter of its preschools were 'unviable'. Education Minister Julia Gillard, according to Bloomberg News, said the government will fund 241 centers until at least March 2009. ABC Learning, Bloomberg News says, will give up financial responsibility for almost one-fifth of the 110,000 children in its care before being seized after the global credit crisis forced up interest payments. The funding lifts the total pledged by the government to keep the daycare business open to AU$56 million. About ABC Learning Centres ABC Learning Centres Limited (ASX: ABS) -- http://www.childcare.com.au/-- provides childcare services and education in more than 1200 centres in Australia, New Zealand, the United States and the United Kingdom. The company's subsidiaries include ABC Developmental Learning Centres Pty Ltd, ABC Early Childhood Training College Pty Ltd, Premier Early Learning Centres Pty Ltd, ABC Developmental Learning Centres (NZ) Ltd., ABC New Ideas Pty. Ltd., ABC Land Holdings (NZ) Limited and Child Care Centres Australia Ltd. On September 25, 2006, the company acquired Hutchison Child Care Services Ltd. On September 7, 2006, it acquired The Children's Courtyard LLP. On December 18, 2006, it acquired Busy Bees Group Ltd. On January 26, 2007, it acquired La Petite Holdings Inc. On February 2, 2007, it acquired Forward Steps Holdings Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In September 2007, the company purchased the Nursery division (Leapfrog Nurseries) from Nord Anglia Education PLC. * * * As reported in the Troubled Company Reporter-Asia Pacific on November 6, 2008, ABC Learning Centres Limited appointed Peter Walker and Greg Moloney of Ferrier Hodgson as voluntary administrators of ABC and a number of its subsidiaries. ABC said subsequent to the appointment of administrators, the company's banking syndicate appointed Chris Honey, Murray Smith and John Cronin of McGrathNicol as receivers. BAKHA NOMINEES: Placed Under Voluntary Liquidation -------------------------------------------------- During a general meeting held on September 30, 2008, the members of Bakha Nominees Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidators are: Timothy James Clifton Mark Christopher Hall Chartered Accountants 26 Flinders Street, Level 10 Adelaide CITY PACIFIC: Settles Sale Contract Dispute ------------------------------------------- City Pacific Limited disclosed that it has successfully negotiated an "in principle" settlement with the other party to the court action, which will dispense with the court proceedings. Those proceedings, City Pacific said, relates to its obligations under a sale contract for a commercial building. City Pacific stated that the "in principle" agreement is subject to formal documentation of the settlement terms. Those terms are currently being documented by the parties' lawyers. City Pacific shares resumed trading Tuesday, December 9, after requesting for a trading halt on Friday, December 5, on the basis of the said negotiations. Sale of Financial Services Business City Pacific said it has executed a conditional agreement for the sale of its financial services business known as City Pacific Finance to OneLend Corporation Pty Ltd for a sum of AU$2.2 million. Subject to certain conditions being satisfied, settlement is anticipated to occur on December 12, 2008. In keeping with the company's focus on funds management and property, City Pacific continues to actively promote and negotiate with a number of interested parties in respect to the company's other financial services subsidiaries, the company said. About City Pacific City Pacific Limited (ASX: CIY) -- http://www.citypac.com.au/ -- is a diversified financial services company, providing finance and investment products. City Pacific, a non-bank loan provider, has AU$5 billion in mortgage assets under advice, comprising over AU$1 billion funds under management in the City Pacific First Mortgage Fund, City Pacific Income Fund, City Pacific Managed Fund and City Pacific Private Fund, a residential loan book of AU$3.3 billion and commercial mortgage assets under management of approximately AU$800 million. City Pacific originates nearly AU$3 billion per annum in loans to fund residential property, property development, commercial property investment, plant & equipment and business finance. * * * As reported in the Troubled Company Reporter-Asia Pacific on August 18, 2008, City Pacific Limited said it took the necessary steps to preserve the value of the Fund's assets and protect unitholders investments in light of the rapidly changing market conditions. As a result of the significant market changes City Pacific made the decision, in March 2008, to defer the payment of redemptions from the Fund whilst continuing the payment of distributions to unitholders. City Pacific said that due to the continued market volatility and the possible impact it may have on the value of the Fund's assets, it is anticipated that certain adjustments will be necessary. Management's review, in consultation with the Fund's auditors, indicates that an accounting provision of approximately 5% of the Fund's mortgage loan portfolio may be necessary. City Pacific reported a net loss after tax of AU$139.53 million for the financial year ended June 30, 2008, compared with a net profit of AU$73.21 million in the previous year. The company also reported an operating profit before impairment and tax of AU$55.5 million down 58.4% from previous year's operating profit of AU$133.42 million. On November 3, 2008, the TCR-AP reported that City Pacific confirmed it has negotiated an extension of its finance facilities to February 27, 2009. The facilities which total AU$114 million were due on October 31, 2008. It also negotiated an extension of City Pacific First Mortgage Fund's finance facility to February 27, 2009. The extended facility for AU$121.5 million was due on October 31, 2008. COLLECTIONS PTY: Members and Creditors Hear Wind-Up Report ---------------------------------------------------------- The members and creditors of Collections Pty Ltd met on Nov. 14, 2008, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: M. O. Basedow Pitcher Partners 160 Greenhill Road Parkside SA 5063 Telephone:(08) 8179 2800 Facsimile:(08) 8179 2885 DAVCOL ENTERPRISES: Court Enters Wind-Up Order ---------------------------------------------- On October 2, 2008, the Federal Court of Australia of Tasmania entered an order to have Davcol Enterprises Pty Ltd's operations wound up. The company's liquidator is: Paul Cook Paul Cook & Associates 105 Macquarie Street Hobart TAS 7000 FAIRFAX MEDIA: Names Brian McCarthy as Chief Executive Officer -------------------------------------------------------------- Fairfax Media Limited has appointed Brian McCarthy as its Chief Executive Officer and Managing Director effective immediately. Mr. McCarthy replaces David Kirk who has resigned from his post Friday last week. Commenting on the appointment, Chairman of the Board Ronald Walker said: "Brian McCarthy is an excellent choice given his deep and extensive media experience and very successful track record as Managing Director of Rural Press Limited for 13 years. Fairfax Media has benefited enormously by his achievements as Deputy CEO and CEO, Australia, where he has managed the Australian publishing and printing assets. Mr McCarthy is the right person with the right experience at this time to run the Company." As reported in the Troubled Company Reporter-Asia Pacific on Dec. 8, 2008, Bloomberg News said Mr. Kirk quit after failing to turn around circulation declines amid the slowest economic growth in eight years. Bloomberg News said the company has fired the editors of its metropolitan broadsheets in Sydney and Melbourne in the past six months. Fairfax, Bloomberg News noted, has slumped 69 percent in Sydney trading this year because of concern about its AU$2.5 billion (US$1.6 billion) of debt, declining newspaper sales and a loss of classified advertising to online rivals. Dividend Reduction Fairfax Media's Board has decided to temporarily reduce its dividend payout ratio to approximately 20% for the interim dividend payable in March 2009 to preserve capital to facilitate debt reduction. The Board intends to be able to return to its policy of a payout ratio of approximately 80% through the cycle as soon as economic conditions permit. Bloomberg News meanwhile reported that according to the Sydney Morning Herald, Fairfax's biggest shareholder, Marinya Media, indicated it would support a reduction in the dividend after other large investors urged the board to use the funds to cut debt. Major shareholders 452 Capital and Perpetual Investments have already called for a reduction in the dividend payout to reduce the company's AU$2.5 billion (US$1.6 billion) of debt, Bloomberg News said. About Fairfax Media Limited Headquartered in Sydney, Australia, Fairfax Media Limited (ASX:FXJ) -- http://www.fxj.com.au/-- is engaged in publishing of news, information and entertainment; advertising sales in newspaper, magazine and online formats; radio broadcasting, and film and television production and distribution. In Australia, the Company's mastheads include The Sydney Morning Herald, The Age, BRW, The Sun-Herald and The Land. Its New Zealand mastheads include The Dominion Post, The Press and Cuisine. Fairfax Media online businesses include Fairfax Digital in Australia (including the news sites, smh.com.au and theage.com.au, and classified and transaction Websites), and Trade Me and stuff.co.nz in New Zealand. On November 9, 2007, it acquired the former Southern Cross Broadcasting's radio business, (including metropolitan stations 2UE in Sydney, 3AW and Magic 1278 in Melbourne, 4BC and 4BH in Brisbane, and 6PR and 96FM in Perth), the Southern Star television production and distribution business, Satellite Music Australia and associated businesses from Macquarie Media Group. FMA HOLDINGS: Inability to Pay Debts Prompts Wind-Up ---------------------------------------------------- The members of FMA Holdings Pty Ltd met on September 30, 2008, and resolved to voluntarily liquidate the company's business due to its inability to pay debts when it fall due. The company's liquidators are: Mark Christopher Hall Timothy James Clifton Chartered Accountants 26 Flinders Street, Level 10 Adelaide SA FUTURE INVESTMENTS: Members and Creditors Receive Wind-Up Report ---------------------------------------------------------------- The members and creditors of Future Investments Pty Ltd met on Nov. 14, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robert Lanzilli MGI Adelaide 212 Greenhill Road Eastwood SA 5063 GRAVITYWELL PTY: Placed Under Voluntary Liquidation --------------------------------------------------- At an extraordinary general meeting held on September 15, 2008, the members of Gravitywell Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidators are: Kimberley Andrew Strickland Christopher Michael Williamson WA Insolvency Solutions Pty Ltd 40 St Georges Terrace, Level 12 Perth WA 6000 LANE COVE: S&P Rating on AU$1.14 Bil. Senior Bonds Tumbles to 'D' ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered its underlying rating on the A$1.14 billion senior secured bonds issued by Lane Cove Tunnel Finance Co. Pty Ltd. to 'D', from 'CC'. The 'AA/Negative/--' insured rating on LCTF was unchanged, given bondholders continue to have the benefit of insurance for scheduled payments provided by MBIA Insurance Corp. (MBIA: AA/Negative/--). The downgrade of the SPUR comes after LCTF confirmed that MBIA would be contributing about A$9.4 million to the scheduled bond and swap payment of about A$37 million, through a drawing under the insurer's guarantee. "Notwithstanding the arrangement between LCTF and MBIA�which involves MBIA contributing to the bond payment to enable LCTF to preserve six months' debt service in the debt-service reserve account, S&P consider LCTF's partial payment of the bond as a failure to pay," S&P's credit analyst Philip Grundy said. "Consequently, S&P has lowered the SPUR to 'D'." MACQUARIE OFFICE: Seeks to Raise AU$500 Million ----------------------------------------------- Macquarie Office Trust went into a trading halt Tuesday, December 9, as it sought to raise about AU$500 million, The Australian reports. Macquarie Office, the Australian relates, is believed to be making a one-for-one entitlement offer in addition to a placement issue priced at about 20c a unit, to raise AU$100 million. The stock closed at 21c on Monday, December 8, the report says. The report notes that while the Trust hopes to raise the bulk from institutions, there will be a AU$120 million retail offer, expected to be fully underwritten by Macquarie Bank. Macquarie Office, the Australian says, is also understood to have sold a US asset, the 55-storey Wachovia Finance Centre in Florida and expected to raise AU$170 million from the sale. According to industry sources cited by the Australian, Macquarie Office had to be close to breaching debt covenants to be conducting a capital raising at this price. Macquarie Office Trust (ASX:MOF) is an investment trust primarily engaged in property investment. The Trust's activities include property investment in prime Australian, United States, European office buildings. On July 23, 2007, the Trust acquired 59 Goulburn Street, Sydney. On August 2, 2007, the Trust acquired the remaining 25% interest in SunTrust Center, Orlando and Pasadena Towers, Pasadena. On August 24, 2007, the Trust sold its 25% interest in 10 & 30 South Wacker Drive, Chicago. On March 30, 2008, the Trust sold its interest in The Lang Centre, Parramatta. On April 30, 2008, the Trust sold its interest in 505 Little Collins Street, Melbourne. MAXIMUN PTY: Members and Creditors Receive Wind-Up Report --------------------------------------------------------- The members and creditors of Maximun Pty Ltd met on Nov. 14, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: M. O. Basedow Pitcher Partners 160 Greenhill Road Parkside SA 5063 Telephone:(08) 8179 2800 Facsimile:(08) 8179 2885 MINCOR RESOURCES: Expects 1H Loss After Metal Prices Plunged ------------------------------------------------------------ Mincor Resources NL expects to post a first-half loss after metal prices plunged, Bloomberg News reports. According to the report, Nickel prices have plunged 64 percent this year as the global recession cut demand for industrial metals and steel. Mincor is "unlikely" to post a profit for the six months ending Dec. 31 because of the nickel price, the company said in a regulatory filing obtained by Bloomberg News. Miitel Mine Suspension Bloomberg News relates Mincor will suspend mining operations at its Miitel project from Christmas affecting about 100 workers. "Miitel's closure is only temporary, and it will certainly get back into production," Managing Director David Moore told Bloomberg News in a phone interview. "The timeframe for that is not certain but it should be within three to six months, depending on the nickel price." About Mincor Resources Headquartered in West Perth, Australia, Mincor Resources NL (ASX:MCR) -- http://www.mincor.com.au/-- is engaged in mining and exploration of mineral resources. During the fiscal year end June 30, 2008, the Company's South Kambalda Operations (including Miitel, Mariners, Redross and Wannaway Nickel Operations) produced 585,684 dry metric tons at an average grade of 2.36%, to produce 11,782 tons of nickel-in-concentrate. The Company's North Kambalda Operations (including Otter Juan, Coronet and McMahon Nickel Operations and Mincor's 70% interest in the Carnilya Hill Nickel Operation) produced 136,931 dry metric tons at an average grade of 3.77%, to produce 4,880 tons of nickel-in-concentrate. The Company's subsidiaries include Oribi Resources Inc, Mincor Operations Pty Limited, Mincor Holdings Pty Ltd, Mincor Gold Pty Ltd, Mincor Copper Pty Ltd, Mincor Tungsten Pty Ltd, Mincor Zinc Pty Ltd and Goldfields Mine Management Pty Ltd. NATIONWIDE STATIONERS: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------------------- The members of Nationwide Stationers Pty Ltd met on July 30, 2008, and resolved to voluntarily liquidate the company's business due to its inability to pay debts when it fall due. The company's liquidators are: Mark Christopher Hall Timothy James Clifton Chartered Accountants 26 Flinders Street, Level 10 Adelaide SA MTM COLLECTIONS: Members and Creditors Hear Wind-Up Report ---------------------------------------------------------- The members and creditors of MTM Collections Pty Ltd met on November 14, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: M. O. Basedow Pitcher Partners 160 Greenhill Road Parkside SA 5063 Telephone:(08) 8179 2800 Facsimile:(08) 8179 2885 NORTHWEST FRESH: Placed Under Voluntary Liquidation --------------------------------------------------- During a general meeting held on September 30, 2008, the members of Northwest Fresh Pty Ltd resolved to voluntarily liquidate the company's business. OZ MINERALS: Faces IMF (Australia) Funded Class Action ------------------------------------------------------ IMF (Australia) Ltd said it proposes to fund claims that certain and former OZ Minerals Limited shareholders have against the company. According to IMF, the claims relate to alleged misleading and deceptive conduct and alleged breaches by OZ Limited of its continuous disclosure obligations between February 28, 2008, and December 3, 2008. In particular, the proposed proceedings are for failure to disclose information regarding OZ Minerals' obligations pursuant to a refinance agreement entered into three days before it announced its proposed merger with Zinifex Limited. IMF said all shareholders who purchased OZ Minerals securities in the period, or who swapped their Zinifex shares for OZL shares, are eligible to participate in the claim which IMF will fund subject to a level participation acceptable to IMF. IMF added it would reveal the claim value in its quarterly case investment reports. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 3, 2008, the Herald Sun said OZ Minerals took the extraordinary step of suspending trading in its shares until December 29 as it scrambles to refinance some of its debt. In a regulatory filing to the Australian Securities Exchange, OZ Minerals disclosed it has not been able to extend the time by which it is required to refinance facilities in the amount of US$560 million to January 31, 2009, as it was seeking to do. The company said it has accepted an offer from its lenders to extend the date by which it is required to refinance these facilities to December 29, 2008, with an option, subject to certain conditions being satisfied, for the extension to run until December 29, 2008, but given continuing volatility in commodity markets and state of global crisis market, believes there is a risk it may have to exercise the option to extend the refinancing date to January 31, 2009. The company added that it requires time to continue negotiations with the counter-parties to the refinancing and believes that these negotiations may be jeopardized if they took place during a period of potentially extreme share price volatility. According to the Herald, banks on the syndicate include ANZ, BOS International, NAB, Royal Bank of Scotland, Commonwealth Bank and Societe Generale. Citing sources close to the talks with the syndicate, the Herald said BOS International was presenting the biggest obstacle to the refinancing of the facility. About OZ Minerals OZ Minerals Limited, formerly Oxiana Limited, -- http://www.ozminerals.com/-- is an Australia-based mining company. The company is a producer of zinc, copper, lead, gold and silver. OZ Minerals was formed through a merger of Australia- based international mining companies Oxiana Limited and Zinifex Limited. The company has five mining operations located in Australia and Asia, three new mining projects in development and a portfolio of advanced and early-stage exploration projects throughout Australia, Asia and North America. Its projects include the Century mine in Queensland, Sepon copper operation in Laos, the gold operation at Sepon, the Golden Grove underground base and precious metals mine in Western Australia, the Rosebery mine in Tasmania, the Avebury nickel mine in Tasmania, the Prominent Hill copper-gold project in South Australia, the Martabe gold project in Indonesia, the Dugald River deposit in Queensland, and the Izok Lake and High Lake copper and zinc deposits in the Nunavut territories of Canada. PESTRUCCI GREGSON: Declares Interim Ordinary Dividend ----------------------------------------------------- Pestrucci Gregson Constructions Pty Ltd, which is in liquidation, declared an interim ordinary dividend on November 14, 2008. Only creditors who were able to file their proofs of debt by that day were included in the company's dividend distribution. The company's liquidator is: Terry O'Connor 105 Macquarie Street Hobart TAS 7000 Telephone:(03) 6223 2555 Facsimile:(03) 6223 2556 e-mail: info@pjc.com.au SMART 2008-3: Moody's Assigns Low-B Ratings on Two Note Classes --------------------------------------------------------------- Moody's Investors Service has assigned provisional ratings to notes issued by SMART Series 2008-3 Trust. The transaction is a securitisation of a portfolio of Australian commercial hire purchase agreements, chattel mortgages, finance leases and novated leases secured by motor vehicles and other commercial equipment originated by Macquarie Leasing Pty Limited. Complete Rating Action - (P)P-1 to the Class A-1 Notes; - (P)Aaa to the Class A-2 Notes; - (P)Aa1 to the Class B Notes; - (P)A2 to the Class C Notes; - (P)Baa3 to the Class D Notes; - (P)Ba2 to the Class E Notes; - (P)B2 to the Class F Notes; The Seller Notes are not rated by Moody's. The ratings address the expected loss posed to investors by the legal final maturity. The structure allows for timely payment of interest and ultimate payment of principal with respect to the Notes by the legal final maturity. Moody's issues provisional ratings in advance of the final sale of securities and these ratings reflect Moody's preliminary credit opinion regarding the transaction. Upon a conclusive review of the final versions of all the documents and legal opinions, Moody's will endeavour to assign a definitive rating to the transaction. A definitive rating may differ from a provisional rating. As part of its modelling in accordance with Moody's log-normal curve approach Moody's assumed a mean default rate on the collateral portfolio of approximately 1.25%-1.50% with a volatility of 67%-75%. Recoveries were modelled using a fixed recovery assumption in the 40% range. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have significant effect on yield to investors. Moody's ratings are subject to revision, suspension or withdrawal at any time at Moody's absolute discretion. The ratings are expressions of opinion and not recommendations to purchase, sell or hold securities. SMART PANEL: Commences Liquidation Proceedings ---------------------------------------------- During a general meeting held on September 29, 2008, the members of Smart Panel Systems Pty Limited agreed to voluntarily liquidate the company's business. The company's liquidators are: Andrew Heard Anthony Phillips Heard Phillips Chartered Accountants 45 Grenfell Street, Level 2 Adelaide SA 5000 Telephone:(08) 8212 3433 TAYLOR SCREENS: Court Enters Wind-Up Order ------------------------------------------ On October 2, 2008, the Federal Court of Australia of Tasmania entered an order to have Taylor Screens Pty Ltd's operations wound up. The company's liquidator is: Paul Cook Paul Cook & Associates 105 Macquarie Street Hobart TAS 7000 TOPLISS ENTERTAINMENT: Members and Creditors Hear Wind-Up Report ---------------------------------------------------------------- The members and creditors of Topliss Entertainment Pty Ltd met on November 17, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: C. Huxtable summerscorporate Level 5, Read Building 16 Milligan Street Perth WA 6000 WHITES MACROB: Members Receive Wind-Up Report --------------------------------------------- The members of Whites Macrob Furniture Pty Ltd met on Nov. 17, 2008, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: G. N. Huddleston 67 Greenhill Road Wayville SA 5034 ========= C H I N A ========= CHINA CONSTRUCTION: To Open First Branch in U.S. ------------------------------------------------ Xinhua News Agency reported that China Construction Bank Corp. has been approved by the U.S. Federal Reserve to establish a branch in New York. According to Xinhua, the Federal Reserve said the proposed branch would engage in wholesale deposit-taking, lending, trade finance, and other banking services. The proposed New York branch would be CCB's first branch in the U.S. About China Construction Bank The China Construction Bank -- http://www.ccb.cn/-- is one of the "big four" banks in the People's Republic of China. It was founded on October 1, 1954, under the name of "People's Construction Bank of China" and later changed to "China Construction Bank" on March 26, 1996. * * * China Construction Bank continues to carry Moody's 'D-' bank financial strength rating. Moody's Bank Financial Strength Ratings (BFSRs) represent Moody's opinion of a bank's intrinsic safety and soundness and, as such, exclude certain external credit risks and credit support elements that are addressed by Moody's Bank Deposit Ratings. SINOPEC CORP: Raises Proven Reserves by 16% in 2008 --------------------------------------------------- China Petroleum and Chemical Corp. (Sinopec) boosted its proven oil and gas reserves at its second-biggest field by 16 percent this year after making "significant" progress in exploration, Shanghai Daily reports citing Sinopec's parent company China Petrochemical Corp. In a newsletter cited by Shanghai Daily, China Petrochemical said Sinopec added 135 million tons of proven reserves at the Tahe field in Xinjiang Uygur Autonomous Region this year, increasing the accumulative deposits to 996 million tons. Sinopec Corp. is the first Chinese company that has been listed in Hong Kong, New York, London and Shanghai. The company is an integrated energy and chemical company with upstream, midstream and downstream operations. The principal operations of Sinopec Corp. and its subsidiaries include: exploring, developing, producing and trading crude oil and natural gas; processing crude oil into refined oil products; producing, trading, transporting, distributing and marketing refined oil products; and producing and distributing chemical products. Based on 2007 turnover, Sinopec Corp. is the largest listed company in China. The company is one of the largest crude oil and petrochemical companies in China and Asia. It is also one of the largest gasoline, diesel and jet fuel and other major chemical products producers and distributors in China and Asia. * * * The working capital deficit of China Petroleum & Chemical Corp. rose by 15%, or CNY10.357 billion, from CNY69.882 billion at Dec. 31, 2006 to CNY80.239 billion at Dec. 31, 2007. The company had CNY185.116 billion in current assets and CNY265.355 billion in current liabilities at Dec. 31, 2007, compared to CNY146.490 billion in current assets and CNY216.372 billion in current liabilities at Dec. 31, 2006. =============== H O N G K O N G =============== DANASIA LIMITED: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------------- On November 27, 2008, the sole member of Danasia Limited resolved to voluntarily liquidate the company's business due to its inability to pay debts when it fall due. The company's liquidators are: Michael John Lintern-Smith Christopher Edwin Michael Lambert The Center, 57th Floor The Center 99 Queen's Road Central Hong Kong GRANDSUIT MACHINERY: Appoints Chan Man Chung as Liquidator ---------------------------------------------------------- On November 25, 2008, the creditors of Grandsuit Machinery (H.K.) Limited appointed Chan Man Chung as the company's liquidator. The Liquidator can be reached at: Chan Man Chung 280 Portland Street, Room 2401 Mongkok, Kowloon KARJADE PROPERTIES: Creditors' Proofs of Debt Due on January 8 -------------------------------------------------------------- The creditors of Karjade Properties Limited are required to file their proofs of debt by January 8, 2008, to be included in the company's dividend distribution. The company's liquidator is: Hsu Shin Cheung Cheong Kee Building Rooms 1201-4 84-86 Des Voeux Road Central Hong Kong KONICA MINOLTA: Lam and Toohey Cease to Act as Liquidators ---------------------------------------------------------- On December 5, 2008, Rainier Hok Chung Lam and John James Toohey ceased to act as liquidators of Konica Minolta Photo Imaging (HK) Limited. The company's former Liquidators can be reached at: Rainier Hok Chung Lam John James Toohey Prince's Building, 22nd Floor Central, Hong Kong PEC INTERNATIONAL: Derek and Haughey Cease to Act as Liquidators ---------------------------------------------------------------- On November 26, 2008, Lai Kar Yan (Derek) and Darach E. Haughey cease to act as liquidators of PEC International (Hong Kong) Limited. The company's former Liquidators can be reached at: Lai Kar Yan (Derek) Darach E. Haughey One Pacific Place, 35th Floor 88 Queensway Hong Kong PRELOTUS DEVELOPMENT: Members' Final Meeting Set for January 20 --------------------------------------------------------------- The members of Prelotus Development Limited will hold their final meeting on January 20, 2009, at 11:00 a.m., at Units 1901-02 of Millennium City 3, 370 Kwun Tong Road, in Kwun Tong, Hong Kong. At the meeting, Chong Shi Ming John, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. REDWOOD INTERNATIONAL: Shareholders' Final Meeting Set for Jan. 8 ----------------------------------------------------------------- The shareholders of Redwood International Limited will hold their final general meeting on January 8, 2008, at 10:00 a.m., at the 31st Floor of Chinachem Century Tower, 178 Gloucester Road, in Wanchai, Hong Kong. At the meeting, To Fung Wo, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. THE WHITNEY: Creditors' Proofs of Debt Due on December 24 --------------------------------------------------------- The creditors of The Whitney Group (Asia) Limited are required to file their proofs of debt by December 24, 2008, to be included in the company's dividend distribution. The company's liquidators are: Lau Wu Kwai King, Lauren Yuen Tsz Chun, Frank Messrs. Kennic L. H. Lui & Co. Ho Lee Commercial Building, 5th Floor 38-44 D'Aguilar Street Central, Hong Kong ========= I N D I A ========= BANGALORE ELEVATED: CRISIL Rates Rs.6.0 Bil. Term Loan at 'BB' -------------------------------------------------------------- CRISIL has assigned its rating of 'BB/Stable' to the term loan facility of Bangalore Elevated Tollway Ltd (BETL). Rs.6.0 Billion Term Loan BB/Stable(Assigned) The rating reflects the significant time overrun, of over four months from the original commercial operation date, in the company's road project, and the revenue risk related to toll collection-based projects. The rating also considers the fact that around 85 per cent of the project work has been completed. Outlook: Stable CRISIL expects BETL to complete the project as per the revised completion schedule. The outlook could be revised to 'Positive' once the project becomes operational and generates revenues. Conversely, it may be revised to 'Negative' in case of delays in achieving the revised targeted commercial operation date or if there are cost overruns. About Bangalore Elevated BETL is a special purpose vehicle (SPV) promoted by Soma Enterprises Ltd (33.5 per cent stake), Nagarjuna Construction Company Ltd (33.5 per cent), and Maytas Infra Ltd (33 per cent). The company has signed a 20-year concession agreement with the National Highways Authority of India Ltd (NHAI) for undertaking the construction and maintenance of the project on a build, operate, transfer (BOT) basis at a total project cost of Rs.7.76 billion. The project involves a 10-kilometre (km)-long access- controlled elevated four-lane road on the Bangalore-Hosur section of National Highway 7, from Silk Board Junction to Electronic City in Bangalore. BETL has, in turn, signed a fixed-cost, fixed-duration engineering, procurement, and construction (EPC) contract with its promoters for the project. The project also involves widening of the existing ground-level section of the elevated road, and operating and maintaining the entire stretch, along with the 14-km Hosur section (from Electronic City to Tamil Nadu border) of the highway. As per the revised schedule, the project will commence operations on April 1, 2009; as on October 31, 2008, about 85 per cent completion had been achieved. WESTERN UP: CRISIL Rates Rs.3.80 Bil. Term Loan at 'BB-' -------------------------------------------------------- CRISIL has assigned its rating of 'BB-/Stable' to the term loan facility of Western UP Tollway Ltd (WUPTL). Rs.3.80 Billion Term Loan BB-/Stable(Assigned) The rating reflects the time overrun, of over three months from the original commercial operation date, in the company's road project, the fact that 35 per cent of the project work was pending as on October 31, 2008, and the revenue risk related to toll collection-based projects. Outlook: Stable CRISIL expects WUTPL to complete the project as per the revised completion schedule. The outlook could be revised to 'Positive' once the project becomes operational and generates revenues. Conversely, it may be revised to 'Negative' in case of delays in achieving the revised targeted commercial operation date or if there are cost overruns. About Western UP WUPTL is a special purpose vehicle (SPV) jointly promoted by Nagarjuna Construction Company Ltd (30 per cent stake), Gayatri Projects Ltd (40 per cent), and Maytas Infra Ltd (30 per cent). The company has signed a 20-year concession agreement with the National Highways Authority of India (NHAI) for undertaking the construction and maintenance of a road project on a build, operate, transfer (BOT) basis at a total project cost of Rs.5.35 billion. WUPTL has, in turn, signed a fixed-cost, fixed-duration engineering, procurement, and construction (EPC) contract with its promoters for the project. The project involves widening the existing two-lane, 79-kiliometre (km)-long stretch of National Highway 58, between Meerut and Muzzaffarnagar, and improving the stretch. WUTPL will also collect toll from vehicles using the stretch. This stretch forms a part of National Highway Development Programme Phase 3A, being undertaken by NHAI. As per the revised schedule, the project will commence commercial operations in September 2009. * Indian Small Debt Funds Face Concentration Risk, CRISIL Says -------------------------------------------------------------- CRISIL's analysis reveals that the portfolio credit quality of most Indian debt mutual fund schemes is strong. However, a majority of schemes have single-industry concentration, and many small schemes have single-company concentration. Funds with large and illiquid single-company exposures could be affected by redemption pressure: single-company exposures could increase as these funds sell the more liquid assets in their portfolios to meet redemptions. The high credit quality of most debt funds' investments, though, partly offsets the risks arising from concentrated holdings. The 860 schemes analyzed cover 96 per cent of the assets under management (AUM) of Indian debt mutual funds; gilt schemes are excluded, since they do not have sector or company exposure. Investments that are rated 'AAA' and 'P1+', the highest rating categories, constitute 82 per cent of the portfolios analysed for the study; the 'AA' category adds another 6 per cent to this figure. Says Roopa Kudva, Managing Director & CEO, CRISIL, "Most debt funds have not compromised on credit quality in search of returns, and investors therefore have little reason to fear defaults eroding the value of their investments. Nevertheless, lack of adequate portfolio diversification does remain an issue." A concentrated portfolio increases the risk of investors losing a large chunk of their capital in the event of a single default. CRISIL has defined portfolios where more than 25 per cent of AUM is exposed to a single industry or company as 'significantly exposed'. By this definition, almost all debt schemes have significant exposure to at least one sector. Half of the schemes have a significant exposure to the banking sector, and 38 per cent have a significant exposure to the non-bank financial company (NBFC) sector. Contrary to widespread perception, exposure to the real estate sector is relatively low. Says Tarun Bhatia, Head, Financial Sector Ratings, CRISIL: "We estimate that only 5 per cent of debt mutual funds' AUM consists of real estate sector debt. More importantly, not more than 3 per cent of debt mutual funds have significant exposure to the real estate sector." More risky than single-industry exposure is single-company exposure, because it implies even lower diversity. Of the 58 debt schemes that have AUMs of Rs.10 billion and above, only two are significantly exposed to single companies. However, of the remaining 802 schemes in the study, 249 have significant exposure to at least one company. This means that, while the larger schemes are welldiversified as far as single-company exposure is concerned, 30 per cent of the smaller schemes have significant single-company exposure. These concentration levels reflect the limited investment opportunities in the Indian debt market. Most funds have worked towards mitigating concentration risk by investing in highly-rated credits as the rating distribution statistics above indicate. Adds Ms. Kudva, "Over the longer term, the solution to concentration risk lies in having a more vibrant debt market with a much wider issuer base than exists in the country today". ================= I N D O N E S I A ================= INDOVER BANK: Declared Bankrupt ------------------------------- De Indonesische Overzeese Bank N.V. (Indover), Bank Indonesia (BI)'s subsidiary based in Netherlands, has been declared bankrupt by a local court, Antara News reports citing BI Governor Boediono. Antara News quoted Governor Boediono as saying "on December 1, 2008, Indover Bank's administrator submitted a bankruptcy application to the court and it seems the court has met the request. So, Indover Bank's bankruptcy is based on Dutch laws." Gov. Boediono, according to Antara News, said BI was still waiting for the next process. "We are waiting for the next legal process to know what we can do to secure our interest," he said. As cited by Antara News, Gov. Boediono added he was also still waiting for the next bankruptcy process on other banks' funds invested in Indover Bank. As reported by the Troubled Company Reporter-Asia Pacific on October 10, 2008, the District Court of Amsterdam, on Oct. 6, 2008, declared the emergency regulations applicable to Indover Bank at Amsterdam and appointed T. van Hees (Stibbe lawyers) and H. de Haan as administrators. Indover is mainly active in the professional and interbanking markets. Regarding the EUR11 million deposits of private parties, it may be decided to declare the deposit guarantee scheme applicable to Indover if the bank's activities no longer prove sustainable. Citing a spokesman at the Dutch central bank, Reuters said the assets and liabilities of Indover will be frozen as a result of the court order. According to The Jakarta Post, BI announced on Oct. 31 it would let Indover fold, after failing to execute a planned EUR545.6 million bailout. The central bank had earlier failed to secure written approval for the bailout from legislators before a deadline set by the Dutch authorities. About Bank Indonesia Bank Sentral Republik Indonesia -- http://www.bi.go.id/-- was created by a new Central Bank Act, the UU No. 23/1999 on Bank Indonesia, enacted on May 17, 1999. The Act confers it the status and position as an independent state institution and freedom from interference by the Government or any other external parties. About Indover Bank A specialized wholesale bank active in trade finance, Indover Bank is fully owned by the Indonesian central bank, Bank Indonesia. Indover Bank is based in Amsterdam, has a branch in Hamburg, wholly-owned subsidiaries in Hong Kong and Singapore, and a representative office in Jakarta. * * * As reported by Troubled Company Reporter-Europe on October 13, 2008, Fitch Ratings downgraded Indover Bank's Long-term Issuer Default Rating to 'D' from 'BB-', Short-term IDR to 'D' from 'B', Individual rating to 'F' from 'D/E' and Support rating to '5' from '3'. These rating actions follow the announcement that Indover Bank has been placed under administration, which Fitch considers to be a default. PT BANK: Fitch Affirms Long-Term Issuer Default Ratings at 'BB' --------------------------------------------------------------- Fitch Ratings has affirmed PT Bank Negara Indonesia Tbk's Long- term foreign and local currency Issuer Default Ratings at 'BB' with a Stable Outlook, Short-term foreign currency IDR at 'B', National Long-term Rating at 'AA-(idn)' (AA minus(idn)) with a Stable Outlook, Individual rating at 'D', Support rating at '3', and Support rating floor at 'BB-' (BB minus). BNI's ratings reflect its improved and better-reserved NPL position, which should provide some cushion against an expected deterioration caused by more challanging operating conditions in 2009. The ratings also take into account its majority state- ownership and size (8.5% of system assets at end-September 2008). However, BNI's NPL ratio was still higher than the industry average at end-Q308, while its capital ratio was relatively lower. BNI's underlying profitability measured by pre-tax ROA improved slightly to 0.9% in 9M08 from 0.8% in 2007, but remained below the peer average of 2.6% in 2007 as provisions were raised; provision cover on NPLs reached 105%. The net interest margin (according to Fitch calculations) rose to 5.5% in 9M08 due to improved asset mix and funding structure but remained below its peer average of 6.1% in 2007. Loans grew by a strong 21% ytd in 9M08 with exposure to better-yielding SME and consumer loans (including sharia) increasing to 64% of total loans from 28% at end-2001. BNI's foreign currency loans fell to 19.6% of total loans at end-9M08 (2007: 26.3%) and were mainly funded by foreign currency deposits. NPLs fell to 6.7% of gross loans at end-Q308 due to lower NPLs in all the major segments and a larger loan base, but were still above the industry average of 4.1% at end-H108. However, loan growth and asset quality are likely to weaken given tougher operating conditions. As such, the new management took a more prudent approach towards provisioning by raising provision cover on NPLs to 105% at end-September 2008. BNI's total CAR and tier I declined to 13.9% and 10.4%, respectively, at end-September 2008 and below the industry's total CAR of 17.6% due partly to rapid loan expansion. Fitch notes that the bank's holdings of non IDR-donominated securities amounted to IDR2.4trn (1.3% of total assets and 16.2% of total equity) at end- September 2008 including some exposure to Lehman Brothers papers of which management advises that full provisions have been set aside. BNI, incorporated in 1946, is one of five state-owned banks and the fourth-largest bank in Indonesia by total assets. After the divestment program in August 2007, government ownership fell to 76.36% at end-September 2008, from 99.1% previously. ========= J A P A N ========= CITIGROUP INC: To Cut 1,000 Jobs at Nikko Cordial ------------------------------------------------- Citigroup Inc. will shed about 1,000 of 7,000 workers at its Japanese retail brokerage unit Nikko Cordial Securities Inc., Bloomberg News reports citing two company officials. Workers at Nikko Cordial accepted Citigroup's offer to take early retirement by a Dec. 8 deadline, the officials told Bloomberg News. Bloomberg News meanwhile recalls that according to two people familiar with the situation, Nikko Cordial offered early retirement to employees over the age of 40 in a Nov. 21 memo from President Eiji Watanabe. The offer includes about two years of pay, the people said. In Japan, Bloomberg News relates, Citigroup is cutting jobs in investment banking and consumer finance and is selling its local trust banking unit. According to Bloomberg News, Nikko Cordial, which was acquired by Citigroup for about JPY1.6 trillion (US$17 billion) last year, has 111 branches in Japan, and held JPY28.2 trillion of client assets as of September. The Tokyo-based brokerage on Oct. 27 posted JPY12.1 billion of profit for the six months ended Sept. 30, compared with JPY20.2 billion a year earlier, Bloomberg News adds. Headquartered in New York, Citigroup Inc. (NYSE: C) -- http://www.citigroup.com-- is organized into four major segments -- Consumer Banking, Global Cards, Institutional Clients Group, and Global Wealth Management. Citi had US$2.0 trillion in total assets on US$1.9 trillion in total liabilities as of Sept. 30, 2008. As reported in the Troubled Company Reporter on Nov. 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. As part of the agreement, the U.S. Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of approximately US$306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup will issue preferred shares to the Treasury and FDIC. In addition and if necessary, the Federal Reserve will backstop residual risk in the asset pool through a non-recourse loan. JAPAN GENERAL: To Pay JPY1 Mil. Each to 53 Students --------------------------------------------------- Japan General Estate Co. said it will pay JPY1 million each in compensation to 53 people whose job offers it canceled, Japan Today reports. As reported by the Troubled Company Reporter-Asia Pacific on December 3, 2008, The Mainichi Daily News said Japan General Estate withdrawn all 53 employment offers it gave to university students. According to Bloomberg News, Japan General fell 14 percent on Monday, December 1, after the job offer cancellation. "With the outlook still so uncertain, we must focus on improving our balance sheet quickly," Bloomberg News cited Seiji Matsumoto, a spokesman at Japan General Estate as saying. The Mainichi Daily said the Tokyo Labor Bureau and the Tokyo Tobu branch of the National Union of General Workers intend to press the company for an explanation. It is extremely unusual for a company to withdraw such a large number of job offers at one time, The Mainichi Daily noted. Japan General Estate Co., Ltd. is a Japan-based company engaged in the real estate business in the metropolitan area. The company has five business segments. The Real Estate Sales segment sells condominiums directly to consumers and on consignment through realtors in the metropolitan area. The Real Estate Leasing segment is engaged in the leasing of real estate in metropolitan and Kansai areas. The Real Estate Management segment is engaged in the management of real estate. The Advertising segment is engaged in the planning and production of advertisement, as well as the construction of interior works. The Others segment is engaged in the facility management, hotel operation, food service, manpower dispatching business, the operation of hot spring facilities and the sale of cosmetics. The company has nine subsidiaries and one associated company. MITSUBISHI MOTORS: Plans to Halt Illinois Plant for Seven Weeks --------------------------------------------------------------- Alan Ohnsman at Bloomberg News reports that Mitsubishi Motors Corporation plans halt producing vehicles at its Illinois plant for seven weeks starting in mid-February, as the company struggles with a 25 percent drop in U.S. sales this year. According to Bloomberg News, Mitsubishi spokesman Dan Irvin said assembly of Galant sedans, Spyder and Eclipse coupes and Endeavor sport-utility vehicles at the Normal factory will be halted beginning Feb. 16, 2009. However, Mr. Irvin said the employees will be kept on for maintenance duty and training. Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the Mitsubishi Motors Revitalization Plan on Jan. 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. * * * As reported by the Troubled Company Reporter - Asia Pacific on August 11, 2008, JCR affirmed the BB/Stable, J-3 and BB- ratings on senior debts, CP program and Euro Medium Term Note Programme of the issuer, respectively. On May 29, 2008, Moody's Investors Service upgraded the senior unsecured ratings of Mitsubishi Motors Corporation (MMC) and its supported subsidiaries, Mitsubishi Motors Credit of America, Inc., and MMC International Finance (Netherlands) B.V., to Ba2 from Ba3. The rating outlook is positive. MITSUBISHI MOTORS: To Recall 12,985 Vehicles in China ----------------------------------------------------- Mitsubishi Motors Corporation will recall 12,985 vehicles imported to China starting Dec. 18 due to problems with the brake lights, Xinhua News Agency reports citing General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ). According to Xinhua, the recalled vehicles include 6,090 Grandis produced between Nov. 23, 2006 and Dec. 28, 2008 and 6,895 Outlander EX produced between Nov. 7, 2007 and April 15, 2008. Xinhua relates that according to GAQSIQ, the brake lights problems may pose a potential danger to drivers because of a short circuit in the switch. Mitsubishi vehicle owners, GAQSIQ said, can have their cars examined for free at the company's service centers across China. Repair work will be done free of charge. Headquartered in Tokyo, Japan, Mitsubishi Motors Corporation -- http://www.mitsubishi-motors.co.jp/-- is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer-financing services and provides this to its customer base. MMC adopted the Mitsubishi Motors Revitalization Plan on Jan. 28, 2005, as its three- year business plan covering fiscal 2005 through 2007, after investor DaimlerChrysler backed out from the company. The main objectives of the plan are "Regaining Trust" and "Business Revitalization." The company has operations worldwide, covering the United States, Germany, the United Kingdom, Italy, the Netherlands, the Philippines, Indonesia, Malaysia, China and Australia. Its products are sold in over 170 countries. * * * As reported by the Troubled Company Reporter - Asia Pacific on August 11, 2008, JCR affirmed the BB/Stable, J-3 and BB- ratings on senior debts, CP program and Euro Medium Term Note Programme of the issuer, respectively. On May 29, 2008, Moody's Investors Service upgraded the senior unsecured ratings of Mitsubishi Motors Corporation (MMC) and its supported subsidiaries, Mitsubishi Motors Credit of America, Inc., and MMC International Finance (Netherlands) B.V., to Ba2 from Ba3. The rating outlook is positive. ========= K O R E A ========= KOOKMIN BANK: May Close or Merge 60 Branches -------------------------------------------- The Korean Herald reported that Kookmin Bank will close or merge 60 branches as part of its efforts to reduce costs as its capital base weakens amid soaring bad loan charges. The move, the report said, comes as Korean banks scramble to enhance their financial soundness, which has fallen amid the global financial crisis. Seoul-based Kookmin Bank -- http://inf.kbstar.com/-- provides various commercial banking services, such as deposits, credit cards, trust funds, foreign exchange transactions, and corporate finance. The bank also offers Internet banking services. The Troubled Company Reporter - Asia Pacific reported on May 8, 2007, that Moody's Investors Service, as part of the application of its refined joint default analysis and updated bank financial strength rating methodologies, revised Kookmin Bank's ratings: * BFSR is changed to C from D+ * Global Local Currency Deposit Ratings assigned are Aa3/Prime-1 * Foreign Currency Deposit Ratings are unchanged at A3/Prime-2 * Foreign Currency Debt Rating for senior obligations is changed to A1 from A3 and for subordinated obligations to A1 from Baa1 * Foreign Currency Short Term Debt Rating is unchanged at Prime-1 On October 1, 2008, Moody's changed the outlook on Kookmin Bank's C bank financial strength rating (BFSR) to negative from stable. The bank's debt and deposit ratings are unaffected and carry a stable outlook. =============== M A L A Y S I A =============== RANHILL BHD: S&P Affirms 'B' Corporate Credit Rating; Outlook Neg. ------------------------------------------------------------------ Standard & Poor's Rating Services affirmed the 'B' corporate credit rating on Malaysia-based Ranhill Bhd. and removed it from CreditWatch with negative implications. The outlook is negative. At the same time, the 'B-' issue rating on Ranhill's US$220 million senior unsecured notes was also affirmed and removed from Creditwatch with negative implications. The ratings were placed on CreditWatch on Sept. 2, 2008, after the diversified group's announcement of its fiscal 2008 results, which was significantly worse than expected. "Ranhill continues to be exposed to project-related risks, with several projects facing completion delays and culminating in the recent provisioning in fiscal 2008," said S&P's credit analyst Andrew Wong. Ranhill management said it will continue to work on improving future profitability in its engineering & construction business. "However, S&P understand that these are yet to translate into formal agreements. Standard & Poor's considers the formalization of improved contractual arrangements to be critical in improving cash flow from these projects and reducing potential strain on liquidity," Mr. Wong said. Ranhill's actions to focus on existing core operations and projects help mitigate the project risks. It provides some clarity to the group's future business strategy and investment outlays. Standard & Poor's expects that Ranhill will continue to focus on its existing projects and limit further exposure to challenging operating environments. "Containment of these risks is vital, given Ranhill's highly leveraged financial risk profile," Mr. Wong noted. Any deviation from S&P's expectations, further cost overruns, or project delays in E&C is likely to place additional stress on the weak financial profile of the company and put pressure on its rating. =============== M O N G O L I A =============== * Fitch Affirms Mongolia's 'B+' Currency Issuer Default Ratings --------------------------------------------------------------- Fitch Ratings has affirmed Mongolia's Long-term foreign and local currency Issuer Default Ratings at 'B+' and revised the Outlook to Negative from Stable. At the same time, the agency has affirmed the country's Short-term foreign currency IDR at 'B' and Country Ceiling at 'B+'. "The revision of Mongolia's Outlook is based on a probable deterioration in sovereign creditworthiness associated with high inflation and a large current account deficit, both of which are putting pressure on the exchange rate resulting in a sizeable reduction in foreign exchange reserves," says Vincent Ho, Associate Director in Fitch's Sovereign group. "Moreover, the change in the commodity price cycle underscores an urgent need to improve economic policy coordination and implementation, which have been beset by uncertainty and inconsistencies, particularly regarding important mining projects," adds Mr. Ho. Mongolia's external financial position is deteriorating. The current account has been in deficit since Q307, driven primarily by very strong import growth, which is in turn a result of large FDI inflows into the mining sector. For 2008, Fitch forecasts import growth of 69% and a current account deficit equivalent to 9.5% of GDP. While FDI is expected to more than finance the current account shortfall, official foreign exchange reserves have fallen sharply this year as the Bank of Mongolia intervened aggressively in the foreign exchange market to prevent a more pronounced depreciation of the Mongolian currency. However, with inflation still at 28% in October, Fitch believes the currency is likely to remain under pressure. Indeed, the MNT has depreciated 7% against USD since the beginning of November 2008. Net international reserves were USD606m at end-November 2008, down from USD975m at end-2007. Fitch expects net reserves to reach USD560m at end-2008 and gross reserves (including gold) to be USD911m (equivalent to 2.6 months of current external payments (lower than the 'B' peer group median)). A continued reduction in foreign exchange reserves would likely result in a sovereign rating downgrade. The Mongolian banking sector is exposed indirectly to currency depreciation, since dollarisation in the system is relatively high. Foreign currency deposits account for approximately 35% of total deposits, and much of the lending related to the property market, for example, is denominated in foreign currency, even though borrowers may not have foreign-currency income. The contingent liability posed by the banking sector is further evident in the blanket deposit guarantee recently extended by the government. Fitch expects fiscal surpluses that were generated between 2005 and 2007 to be transformed into deficits from 2008 to 2010, ranging from 1.7%-6.2% of GDP. The non-mineral fiscal deficit is widening, and the agency forecasts a reduction in mineral revenue due to falling commodity prices. Mongolian fiscal financing sources are mainly medium- and long-term concessional project loans, and despite the deficits, government debt should remain steady at about 30% of GDP (close to the 'B' peer group median) in the medium term. ==================== N E W Z E A L A N D ==================== AIR NEW ZEALAND: Buys Stake in Australian Firm V3 ------------------------------------------------- David Hagreaves at the BusinessDay.co.nz reports that Air New Zealand Ltd has taken a "cornerstone shareholding" in an Australian online tourism business V3 (Vcubed Pty) for an undisclosed sum. The report says Air NZ's deputy chief executive Norm Thompson said V3 operates a patented open booking exchange system called OBX, which allows distributors "to access live, book-able inventory from tourism operators in a real-time marketplace." The system, the report relates, currently operating in Australia, would now be made available in New Zealand in a joint venture deal, but through a separate, stand-alone company. According to the report, Mr. Thompson said former Air New Zealand General Manager Chris Hunter had been appointed chief executive Officer of the new business that would offer a similar tourism exchange service in New Zealand. About Air New Zealand Based in Auckland, New Zealand, Air New Zealand Ltd -- http://www.airnewzealand.com/--is the country's flag air carrier, with domestic and international passenger and freight operations, and an aviation engineering business. Air New Zealand flies to the United States, United Kingdom, Canada, Europe and other Asian cities. * * * On Aug. 5, 2008, Moody's Investor's Service affirmed Air New Zealand Limited's Ba1 Senior Unsecured Issuer rating. At the same time, it changed the outlook on the rating to stable from positive. CONCOURSE LTD: Creditors' Proofs of Debt Due on December 15 ----------------------------------------------------------- The creditors of Concourse Ltd. are required to file their proofs of debt by December 15, 2008, to be included in the company's dividend distribution. The company's liquidator is: Robert James Taylor Christmas Gouwland & Co, PO Box 106090, Auckland Telephone:(09) 309 1799 Facsimile:(09) 307 3113 CTR2 LTD: Court to Hear Wind-Up Petition on December 15 ------------------------------------------------------- A petition to have CTR2 Ltd.'s operations wound up will be heard before the High Court of Auckland on Dec. 15, 2008, at 11:45 a.m. Auckland City Council filed the petition against the company on September 30, 2008. The Petitioner's solicitor is: Richard B. Lange Simpson Grierson, Solicitors 88 Shortland Street, Level 27 Auckland ING GROEP: To Close New Zealand Funds, Bloomberg Says ----------------------------------------------------- Bloomberg News reports ING Groep NV plans to shut down New Zealand funds managing more than NZ$537 million (US$353 million) as plunging stock markets sparked a rise in investor withdrawals. The report, citing a statement from the Auckland-based asset manager, says ING (NZ) Ltd. will recommend winding up the Diversified Yield Fund and the Regular Income Fund, which had more than NZ$500 million invested in them when they were suspended in March. ING, the report relates, will close the Credit Opportunities Fund and the Enhanced Yield Fund, which together have about NZ$37 million invested. According to the report, ING, which had difficulty in pricing assets or selling them to fund withdrawals from the funds, said no further withdrawals or applications will be processed for the Credit Opportunities or the Enhanced Yield funds, and investors will be asked whether they want an immediate or managed wind up. The funds, both created in October 2006, invested in corporate bonds, mortgage-based securities and collateralized debt obligations, Bloomberg News says. Bloomberg News adds ING will make NZ$100 million available to provide investors in the Diversified Yield Fund and the Regular Income Fund with some cash immediately, and the loan would be paid back from the sale of assets before further cash could be returned to investors. According to Bloomberg News, ING's detailed proposal will be put to the trustee representing investors and a meeting of investors will be held before March 31 to outline the plan. Dutch Emergency Recapitalization As reported in the Troubled Company Reporter-Europe on Nov. 17, 2008, the European Commission approved, under EC Treaty state aid rules, an emergency intervention in the form of recapitalization, that the Dutch authorities intended to grant to ING Groep N.V. On October 22, 2008, the Dutch authorities notified their plans to recapitalize ING Groep N.V. with EUR10 billion via a special type of securities. The securities were scheduled for issuance on November 12, 2008. About ING Groep N.V. ING Groep N.V. -- http://www.ing.com/-- is a global financial institution of Dutch origin offering banking, insurance and asset management to over 85 million private, corporate and institutional clients in more than 50 countries. With a diverse workforce of about 130,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand. GLENN CONROY: Court to Hear Wind-Up Petition on December 17 ----------------------------------------------------------- A petition to have Glenn Conroy Creative Ltd.'s operations wound up will be heard before the High Court of Auckland on Dec. 17, 2008, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on August 11, 2008. The CIR's solicitor is: Sandra Joy North Inland Revenue Department Legal and Technical Services 17 Putney Way PO Box 76198, Manukau Auckland 2241 Telephone:(09) 985 7274 Facsimile:(09) 985 9473 GRUN-GREEN PRODUCTS: Commences Liquidation Proceedings ------------------------------------------------------ On November 5, 2008, Grun-Green Products Ltd. commenced liquidation proceedings. The company's liquidators are: Wayne John Deuchrass Paul William Gerrard Jenkins c/o Insolvency Management Limited 148 Victoria Street, Level 1 PO Box 13401, Christchurch INTREPID ENTERPRISES: Creditors' Proofs of Debt Due on December 19 ------------------------------------------------------------------ The creditors of Intrepid Enterprises (2005) Ltd. are required to file their proofs of debt by December 19, 2008, to be included in the company's dividend distribution. The company's liquidator is: Trevor Laing Trevor Laing & Associates PO Box 2468, Dunedin Telephone:(03) 454 4559 LIVING ON: Court to Hear Wind-Up Petition on December 15 -------------------------------------------------------- A petition to have Living On Selwyn Ltd.'s operations wound up will be heard before the High Court of Christchurch on Dec. 15, 2008, at 10:00 a.m. Christchurch City Council filed the petition against the company on October 21, 2008. Christchurch City's solicitor is: N. S. Elsmore Anderson Lloyd, Lawyers Clarendon Tower, Level 10 corner of Oxford Terrace and Worcester Street Christchurch 8011 LOVITT'S NZ: Wind-Up Petition Hearing Set for December 15 --------------------------------------------------------- A petition to have Lovitt's NZ Ltd.'s operations wound up will be heard before the High Court of Auckland on Dec. 15, 2008, at 11:45 a.m. Taylor Preston Limited filed the petition against the company on October 9, 2008. Taylor Preston's solicitor is: Michael Leggat Wakefield House, Level 7 90 The Terrace, Wellington MODERN PAVING: Subject to CIR's Wind-Up Petition ------------------------------------------------ On August 4, 2008, the Commissioner of Inland Revenue filed a petition to have Modern Paving Ltd.'s operations wound up. The petition will be heard before the High Court at Auckland on December 12, 2008, at 10:45 a.m. The CIR's solicitor is: Sandra Joy North Inland Revenue Department Legal and Technical Services 17 Putney Way PO Box 76198, Manukau Auckland 2241 Telephone:(09) 985 7274 Facsimile:(09) 985 9473 ONEHUNGA INVESTMENTS: Court Hears Wind-Up Petition -------------------------------------------------- On December 5, 2008, the High Court at Auckland heard a petition to have Onehunga Investments Ltd.'s operations wound up. City Cleaning Services Limited filed the petition against the company on August 7, 2008. The Petitioner's solicitor is: C. N. Lord Corporate Collections Limited 187 Mt Eden Road Mt Eden, Auckland PLASTIC TREATMENTS: Creditors' Proofs of Debt Due on December 19 ---------------------------------------------------------------- The creditors of Plastic Treatments Ltd. are required to file their proofs of debt by December 19, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Nov. 12, 2008. The company's liquidator is: Graeme G. Mcdonald Apex Accounting Limited 3A/517 Mt Wellington Highway Mt Wellington, Auckland 1060 Telephone:(09) 573 5840 Facsimile:(09) 573 5359 PRIVATE PROPERTY: Wind-Up Petition Hearing Set for December 17 -------------------------------------------------------------- A petition to have Private Property Partners Ltd.'s operations wound up will be heard before the High Court of Auckland on Dec. 17, 2008, at 10:00 a.m. Westpac New Zealand Limited filed the petition against the company on August 4, 2008. The Petitioner's solicitor is: M. V. Robinson Simpson Grierson 88 Shortland Street, Level 27 Auckland ROBERT BROWN: Court Hears Wind-Up Petition ------------------------------------------ On December 5, 2008, the High Court at Auckland heard a petition to have Robert Brown Developments (Napier) Ltd.'s operations wound up. Bridgecorp Limited filed the petition against the company on July 22, 2008. Bridgecorp's solicitor is: Michael David Arthur Chapman Tripp Sheffield Young ANZ Centre, Level 35 23-29 Albert Street, Auckland SILVER FERN: Breaches Banking Covenants --------------------------------------- Silver Fern Farms, formerly PPCS, said it has breached its banking covenant due to the recent rapid decline of the New Zealand dollar against the US dollar. In a disclosure to the New Zealand Stock Exchange, Silver Fern said "In accordance with Silver Fern Farms accounting policies foreign currency derivative instruments are taken directly to profit or loss for the year. As a result of this, and due to the recent rapid decline of the New Zealand dollar against the US dollar, Silver Fern Farms has advised its banks, subsequent to balance date that it is not currently in compliance with its minimum shareholders funds covenant." Silver Fern added that it has accordingly requested a waiver from its banks and its banks are considering revising the covenant to accommodate such volatility. This non-compliance, the company said, relates only to Silver Fern Farms' banking facilities and not to either of its SFF020 or SFF030 Bonds. Based in Dunedin, New Zealand, Silver Fern Farms Limited -- http://www.silverfernfarms.co.nz/-- is a meat-marketing and processing company, exporting sheep meat, beef, venison and associated products to about 60 countries. The company employs more than 6,000 staff. THE BBG: Wind-Up Petition Hearing Set for December 19 ----------------------------------------------------- A petition to have The BBG Trust Ltd.'s operations wound up will be heard before the High Court of Auckland on Dec. 19, 2008, at 10:00 a.m. Auckland City Council Limited filed the petition against the company on August 8, 2008. The Petitioner's solicitor is: Richard B. Lange Simpson Grierson, Solicitors Level 27, 88 Shortland Street Auckland THRIVE PROPERTIES: Appoints Madsen-Ries and Vance as Liquidators ---------------------------------------------------------------- On October 24, 2008, Vivien Judith Madsen-Ries and David Stuart Vance were appointed as liquidators of Thrive Properties Ltd. Only creditors who were able to file their proofs of debt by December 9, 2008, will be included in the company's dividend distribution. The Liquidators can be reached at: Vivien Judith Madsen-Ries David Stuart Vance c/o Kamna Jagdale Deloitte Deloitte House, Level 8 8 Nelson Street, Auckland 1010 Telephone:(09) 309 4944 Facsimile:(09) 309 4947 WALKER SOMERVILLE: Court to Hear Wind-Up Petition on December 17 ---------------------------------------------------------------- A petition to have Walker Somerville Ltd.'s operations wound up will be heard before the High Court of Auckland on Dec. 17, 2008, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on August 15, 2008. The CIR's solicitor is: Sandra Joy North Inland Revenue Department Legal and Technical Services 17 Putney Way PO Box 76198, Manukau Auckland 2241 Telephone:(09) 985 7274 Facsimile:(09) 985 9473 * NEW ZEALAND: Terms of Trade Fall 2.3% in September Quarter ------------------------------------------------------------ The merchandise terms of trade fell 2.3 percent in the September 2008 quarter, due to import prices rising more than export prices, Statistics New Zealand said. The latest fall followed a 0.4 percent fall in the June 2008 quarter. However, the terms of trade remain 4.4 percent higher than one year ago and over one- fifth higher than five years ago. The latest fall means 2.3 percent less merchandise imports could be funded by a fixed quantity of merchandise exports than in the June 2008 quarter. According to the Reserve Bank Trade Weighted Index, the New Zealand dollar depreciated by 5.4 percent and this made a significant contribution to September 2008 quarter rises in the import and export price indexes. The import price index rose 11.1 percent, while seasonally adjusted import volumes fell 5.0 percent in the September 2008 quarter. The rise in prices was the largest quarterly rise for merchandise imports since the September 1984 quarter. The price index was driven up by a 31.0 percent rise in the petroleum and petroleum products index, the largest increase since a 66.3 percent rise in the December 1990 quarter. When petroleum and petroleum products are excluded, the price index for merchandise imports rose 7.4 percent. The fall in import volumes was driven by a fall in the capital goods index (down 18.2 percent). The capital goods index was also the main contributor to a rise in import volumes rise in the June 2008 quarter � an oil rig and floating platform valued at $477 million were imported and took the index to a new high. The export price index rose 8.6 percent, while seasonally adjusted export volumes fell 2.3 percent in the September 2008 quarter. The export price has increased for five consecutive quarters, and is 29.2 percent higher than in the June 2007 quarter, when it last fell. An 8.4 percent rise in the food and beverages index, driven by meat (up 11.5 percent) and dairy products (up 7.4 percent), was the main contributor to the overall increase in prices. The fall in export volumes was mainly due to dairy products and to petroleum and petroleum products. The volume of dairy products has fallen for the last three quarters. ===================== P H I L I P P I N E S ===================== SAN MIGUEL: Inks Option Agreement to Buy 50.1% Stake in Petron -------------------------------------------------------------- San Miguel Corporation disclosed that it has entered into an option agreement with Ashmore Group for the purchase of up to a 50.1% stake of Ashmore's interest in Petron Corporation. The deal is expected to cost San Miguel some Php32.8 billion, BusinessWorld reports. Citing unnamed sources, Philippine Daily Inquirer relates that San Miguel will acquire stake in Petron at the price that Ashmore was paying to acquire the government's 40 percent stake. Ashmore reportedly paid Php25.7 billion, or Php6.85 a share, for the 40 percent of Petron held by state-owned Philippine National Oil Co, the report added. San Miguel Vice Chairman and President Ramon Ang told the Daily Inquirer in a text message that the company will pay no premium to the acquisition. The deal will allow San Miguel to finally follow through with a 2007 announcement that it wanted to go into businesses outside of food and beverages, BusinessWorld said. About San Miguel Corporation San Miguel Corporation is a food, beverage and packaging company established in 1890 initially as a single-product brewery. Today, SMC has over 100 facilities in the Philippines, Southeast Asia, China, and Australia. SMC's extensive product portfolio includes beer, hard liquor, carbonated and non-carbonated non- alcoholic beverages, processed and packaged food products, meat, poultry, dairy products and a number of packaging products. SMC's flagship product, San Miguel Beer, is among the world's largest selling beers. From its original cerveza, SMC now owns a wide range of popular beverage brands and products that extends from beer to hard liquor, soft drinks, bottled water, powdered juice and juice drinks. The company's food operations involve poultry and livestock operations, the production and marketing of fresh, ready-to-cook and processed meats as well as milk, butter, cheese, margarine, ice cream, flour and flour- based products, snack foods, coffee, cooking oil, coconut oil, pet food and animal and aquatic feeds. Through the partnerships it has forged with major international companies, SMC has gained access to the latest technologies and expertise. SMC's strategic partnerships with international companies include Nihon Yamamura Glass Company, Ltd. and Rengo Co., Ltd. of Japan, and Hormel Foods Corporation of the United States. Kirin Brewery Co. Ltd., one of the largest beer manufacturing companies in Japan, has a significant stake in SMC. * * * San Miguel Corp. continues to carry Standard & Poor's "BB" Issuer Credit Rating (Foreign Currency) with a Negative outlook. The Troubled Company Reporter-Asia Pacific reported on November 7, 2008, that Standard & Poor's Ratings Services said San Miguel Corp.'s (foreign currency BB/Negative/--) recent announcement on an agreement to acquire 27% of Manila Electric Co. (Meralco, B- /Stable/--) does not have an immediate rating impact on both companies. SAN MIGUEL: Moody's Changes Outlook on 'Ba2' CFR to Negative ------------------------------------------------------------ Moody's Investor Service has changed the outlook for the Ba2 local currency corporate family rating of San Miguel Corporation to negative from stable. The rating action is in response to SMC's announcement that it has an option to purchase up to 50.1% in Petron Corporation, the leading oil refining and marketing company in the Philippines. SMC has also announced its intention to explore opportunities in wireless broadband, mobile and mobile broadband in the Philippines through the formation of a joint venture with Qatar Telecom. Furthermore, these investment plans follow soon after SMC's decision in October to invest in 27% of Manila Electric Corp for a cost of PHP27 billion. "While SMC has strong liquidity on hand to fund its investments, visibility surrounding the company's business risk profile has fallen, as the asset contributions from its new and riskier businesses will likely surpass Moody's expectations, thus prompting the outlook change," says Renee Lam, a Moody's VP/Senior Analyst. "SMC's new energy businesses, including Manila Electric Corp and likely Petron Corp, are more cyclical than the relatively stable beverage and food businesses in which SMC has established a long and successful track record," adds Lam. "Further adding to the uncertainties is the company's continued active evaluation of acquisition opportunities in various unrelated sectors and outside its core competencies, including telecommunications and mining," adds Lam. Moody's expects that SMC's combined investments in Manila Electric Corp and likely Petron Corp could result in investment costs surpassing the previously envisaged PHP35 billion, or 10% of total assets. The rating could be downgraded if 1) SMC exercises its option to partially acquire Petron Corp, which in turn would negatively impact its consolidated credit profile, given Petron Corp's higher business risk and more aggressive financial profile; or 2) other major new investments materialize; or 3) SMC significantly raises its debt leverage to fund its investments, or 4) there is a deterioration in its operating performance. Financial indicators that Moody's would consider for a downgrade include adjusted retained cash flow to net debt consistently below 12-15% and Adjusted Debt/EBITDA consistently above 4.0x. Given the negative outlook, the possibility of an upgrade is limited. However, the outlook could stabilize on evidence that SMC's business transformation strategy is prudently executed, including a more certain business profile, while the company at the same time maintains a sound liquidity and financial position. The last rating action with respect to SMC was on August 21, 2007 when it was downgraded to Ba2 from Ba1, with a stable outlook. San Miguel Corp, based in the Philippines, is one of the largest food and beverages companies in Southeast Asia. It is engaged in the production, processing and marketing of beverages, food, and packaging products. It reported revenue of about US$3.6 billion in 2007, excluding revenue from assets disposed during the year. * PHILIPPINES: Nat'l. Gov't. Debt Reaches PHP4.1 Tril. in Sept. --------------------------------------------------------------- As of September 2008, the National Government debt increased by 1.9 % or PHP76 billion from the August 2008 level. Total outstanding debt stood at PHP4.100 trillion of which, PHP1.731 trillion or 42% is owed to foreign creditors and PHP2.369 trillion or 58% to domestic creditors, according to the Bureau of the Treasury. The domestic debt increased by 0.4% or PHP10 billion from the recorded end August 2008 level arising from net issuances of government securities. The increase in NG's foreign debt of PHP66 billion or 4.0% from the level as of end August 2008 was due to the PHP51 billion and PHP19 billion depreciation of the peso and the third currencies against the US dollar, respectively. However, this was partially offset by the PHP4 billion net repayments. The contingent debt of the National Government, composed mainly of guarantees issued by the National Government, dropped to PHP512 billion from end August 2008 level of PHP519 billion. This is a decline of PHP7 billion resulting from the combined effects of PHP13 billion net repayments, PHP8 billion prepayment of NPC loans and PHP14 billion net depreciation of the peso against the US dollar. ================= S I N G A P O R E ================= AXS-ONE INC: Sells US$1.1MM Convertible Promissory Notes, Warrants ------------------------------------------------------------------ AXS-One Inc. entered into a Convertible Note and Warrant Purchase Agreement pursuant to which it sold and issued an aggregate of US$1,100,000 of Series E 6% Secured Convertible Promissory Notes due May 29, 2009, together with warrants to purchase an aggregate of 3,300,000 shares of common stock of the company at an exercise price of US$.01 per share. Net proceeds to the company after transaction expenses were approximately US$1,050,000. The Series E notes and warrants were sold in a private placement under Rule 506 promulgated under the Securities Act of 1933, as amended, to eight accredited investors, including two members of the company's board of directors. The Series E Notes will mature on May 29, 2009, and principal and interest thereunder are convertible into the company's common stock at a fixed conversion rate of US$1.00 per share, bear interest of 6% per annum and are secured by substantially all the assets of the company. The Series E Notes may be converted at the option of the Series E Note holder at any time prior to maturity. The Series E Notes rank pari passu in priority of payment and in all other respects with all of the Series D 6% Secured Convertible Promissory Notes sold and issued by the company for the aggregate amount of US$2,100,000 on July 24, 2008, the Series C 6% Secured Convertible Promissory Notes sold and issued by the company for the aggregate amount of US$3,750,000 on Nov. 16, 2007, and the Series A 6% Secured Convertible Promissory Notes and Series B 6% Secured Convertible Promissory Notes sold and issued by the company for the aggregate amount of US$5,000,000 on May 29, 2007. The security interest of the Series E Note holders has been subordinated to the security interest of Sand Hill Finance, the company's current senior lender, pursuant to a Second Amended and Restated Subordination Agreement dated as of Oct. 30, 2008. Pursuant to the terms of a Third Security Agreement Amendment dated Oct. 30, 2008, among the company and the other secured parties set forth therein, the security interest of the Series E Notes ranks pari passu with the security interest granted in connection with the Prior Notes. In addition, pursuant to a Waiver and Termination of Participation Rights and Joinder to New Participation Rights Agreement the holders of the Prior Notes (i) have agreed to waive their Participation Rights held pursuant to Section 4.7 of the Convertible Note and Warrant Purchase Agreement, dated as of July 24, 2008; (ii) have agreed that upon execution of the Purchase Agreement, all of their Participation Rights held pursuant to the July 2008 Agreement terminated and are of no further force and effect; and (iii) have agreed, pursuant to Section 4.7 of the Purchase Agreement to join, become party to and be bound by Section 4.7 of the Purchase Agreement regarding rights of participation and the miscellaneous provisions of Article VI of the Purchase Agreement, effective upon execution of the Purchase Agreement. Each Series E Note holder also received a warrant to purchase three shares of AXS-One common stock for each US$1 of the principal amount of Series E Notes purchased. Each Warrant has an exercise price of US$0.01 per share and is exercisable at any time during the seven-year period following the closing. In addition, in connection with the financing under the Purchase Agreement, the company entered into an Investor Rights Agreement on Oct. 30, 2008, which sets forth the company's obligations relating to the registration of the shares of common stock underlying the Series E Notes and Warrants, including a requirement that the Company file a registration statement with respect to such common stock no later than May 29, 2009. In addition, in connection with the financing under the Purchase Agreement, each of the Prior Notes was amended pursuant to note amendments to provide that any event of default under the Series E Notes will constitute an event of default under the Prior Notes. The proceeds from this financing will be used to fund the company's operations. About AXS-One Inc. Headquartered in Rutherford, New Jersey, AXS-One (OTC BB: AXSO) -- http://www.axsone.com/-- provides "records compliance management" software solutions. The AXS-One Compliance Platform enables organizations to implement secure, scalable and enforceable policies that address records management for corporate governance, legal discovery and industry regulations such as SEC17a-4, NASD 3010, Sarbanes-Oxley, HIPAA, The Patriot Act and Gramm-Leach Bliley. AXS-One has offices worldwide including in the United States, Australia, Singapore, United Kingdom and South Africa. As reported in the Troubled Company Reporter on Nov. 5, 2008, AXS-One Inc.'s balance sheet at Sept. 30, 2008, showed total assets of US$4.8 million, total liabilities of US$18.2 million and shareholders' deficit of US$13.4 million. Going Concern Doubt As reported in the Troubled Company Reporter on April 25, 2008, Amper, Politziner, & Mattia, P.C., in Edison, N.J., expressed substantial doubt about AXS-One Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm pointed to the company's losses from operations and working capital deficiency. The company generated losses from operations of US$1,752,000 for the three months ended March 31, 2008. Additionally, the company was not in compliance with its quarterly license revenue covenant as of March 31, 2008. The bank waived such violation and changed the covenants for future periods from a minimum license revenue covenant and minimum three month rolling net loss covenant to (a) a minimum three month rolling EBITDA covenant, (b) minimum cash and accounts receivable availability covenant and (c) a minimum equity infusion covenant of US$500,000. LINGUAPHONE SINGAPORE: Placed Under Voluntary Liquidation --------------------------------------------------------- At an extraordinary general meeting held on Nov. 28, 2008, the members of Linguaphone Singapore Pte Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt by Jan. 6, 2008, to be included in the company's dividend distribution. The company's liquidators are: Steven Tan Chee Chuan Douglas Tan Kay Yeow 25 International Business Park #04-22/26 German Centre Singapore 609916 NETTEST PTE: Creditors' Proofs of Debt Due on January 5 ------------------------------------------------------- The creditors of Nettest Pte Ltd are required to file their proofs of debt by January 5, 2008, to be included in the company's dividend distribution. The company's liquidator is: Lai Seng Kwoon c/o 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 SAGAWA EXPRESS: Creditors' Proofs of Debt Due on January 5 ---------------------------------------------------------- The creditors of Sagawa Express Asia Pte., Ltd. are required to file their proofs of debt by January 5, 2008, to be included in the company's dividend distribution. The company's liquidator is: Mitani Masatoshi c/o 89 Short Street #08-11 Golden Wall Centre Singapore 188216 TRIBOND TRADING: Creditors' Proofs of Debt Due on January 5 ----------------------------------------------------------- The creditors of Tribond Trading Company Pte Ltd are required to file their proofs of debt by January 5, 2008, to be included in the company's dividend distribution. The company's liquidators are: Chee Yoh Chuang Lim Lee Meng c/o 8 Wilkie Road, #03-08 Wilkie Edge Singapore 228095 =========== T A I W A N =========== TA CHONG: Fitch Junks Ratings on NTD4.04 Billion Notes ------------------------------------------------------ Fitch Ratings has downgraded some of the rated tranches of Ta Chong Bank 2006-1 Collateralised Bond Obligation Special Purpose Trust: -- NTD1,498m Class A-1 Commercial Paper (CP): downgraded to 'C(twn)' from 'F2(twn)', removed from RWN; -- NTD2,150m Class A-2 CP: affirmed at 'C(twn)'; -- NTD320m Class B CP: affirmed at 'C(twn)'; and -- NTD80m subordinated term note due February 2013: downgraded to 'C(twn)' from 'CC(twn)'. SPT1 is a bankruptcy-remote special purpose trust, established in 2006, to fund a one-time purchase of NTD corporate bonds and a USD single tranche synthetic CDO, through the issuance of three classes of NTD CP and a subordinated term note. Following recent collateral repayments, the outstanding collateral consists of NTD1.4bn in notional of corporate bonds and a USD76m synthetic CDO, Castle Finance III Ltd's Series 1 (Castle Finance, rated 'C'). The NTD assets are rated at least 'BBB-' (BBB minus) and have a remaining weighted average life of less than one year. On November 28, 2008, SPT1 failed to make a USD payment to the Cross Currency Swap counterparty, ABN AMRO Bank, because of its reliance on the USD interest of Castle Finance to make such CCS payment. This triggered a Stop Issuance Event. The downgrade of Class A-1 reflects SPT1's expected failure to make due payment to all the rated CP notes at its next payment date on 17 December 2008 following this Stop Issuance Event. Castle Finance has, in total, experienced seven Credit Events in its reference portfolio that represent 7% of the total reference portfolio notional, exceeding the available credit enhancement of 2.82% and the detachment point of 3.82%. While the settlement processes are in progress for these seven reference entities, Castle Finance will not pay interest to SPT1. The downgrade of the subordinated term note also follows the agency's rating downgrade of Castle Finance to 'C' from 'CC'. This rating action reflects the agency's view on the low recovery prospects of three referenced Icelandic banks recently subject to a Bankruptcy Credit Event, namely, Landsbanki Islands, Kaupthing Bank hf. and Glitnir Banki hf. Therefore, the credit enhancement level of Castle Finance is expected to reduce to a negative level that will result in principal losses to the noteholders (for more information, please refer to "Fitch Downgrades 10 CDO Notes on Low Recovery Prospects of 3 Icelandic Banks" published on 19 November 2008). Current noteholders have legal claims over the outstanding collateral. The ultimate recovery rate of the outstanding notes is subject to the realised value of the remaining collateral minus any costs related to the unwinding of the swaps and the distribution priority of the notes in the post-enforcement waterfall. The recovery prospects for the outstanding Class A-1 CP is currently expected to be high, however, for the Class A-2, B and subordinated notes the current expected recovery amounts are likely to be negligible. The ratings of the CP address the timely payment of interest and principal in accordance with the terms of the transaction documents. The rating on the subordinated term note addresses the ultimate payment of principal in accordance with the terms of the transaction documents. However, the ratings do not address the possibility of any changes in Taiwanese law or regulatory framework, or early termination of the transaction driven by investors. =============== T H A I L A N D =============== TMB BANK: S&P Keeps 'BB+/B' Counterparty Credit Rating ------------------------------------------------------ Standard & Poor's Ratings Services revised the outlook on Thailand's TMB Bank Public Co. Ltd. to stable from negative, reflecting a sustained improvement in the company's credit profile, which is supported by the bank's strengthened management team and its improved financial profile. At the same time, S&P affirmed its 'BB+/B' counterparty credit ratings on the bank. "The bank's adjusted total equity ratio has improved, driven mainly by a capital investment of about 25.2% provided by ING Bank," said S&P's credit analyst Paul Clarkson. "The collaboration with ING has also strengthened TMB's management team." The stable outlook reflects S&P's expectation that TMB will continue to improve its financial profile, albeit at a slower rate given the more difficult operating environment. The rating could be raised if TMB demonstrates a significant improvement in its financial profile, namely in asset quality, capital, and core profitability. Conversely, the rating could be lowered if the bank's nonperforming assets increase substantially or the bank's core operating performance deteriorates significantly. =============== X X X X X X X X =============== * Former Chrysler Chief Opposes Ouster of Big 3 CEOs ---------------------------------------------------- Mike Spector posted on The Wall Street Journal blog that former Chrysler LLC chairperson and chief executive Lee Iacocca doesn't agree with calls from the Congress that CEOs of Chrysler, Ford Motor Co., and General Motors Corp. be laid off as a condition of a government financial bailout. According to the blog, Mr. Iacocca had persuaded the Congress to extend Chrysler about US$1.5 billion in loans in 1979, and those loans had been paid back, with interest. According to Mr. Spector, Mr. Iacocca was also president of Ford Motor. Mr. Iacocca said in a statement, "Having been there, I do not agree with the sentiment now coming out of Congress that the management should be changed as a condition of granting loans to the Detroit auto makers. "You don't change coaches in the middle of the game, especially when things are so volatile . . . . The industry has been brutalized by a totally unpredictable series of events over which it had little control and that is beating it unmercifully into the ground. The companies may not be perfect but the guys who are running them now are the only ones with the experience and the in-depth knowledge and understanding of how the car business really works. They're by far the best shot we have for success. I say give them their marching orders and then let them march. They're the right people to get the job done." Corey Boles posted on the WSJ blog that a senior congressional aide said on Monday that the CEOs of Ford Motor, Chrysler, and GM wouldn't lose their jobs as part of a government bailout. A proposal, says Mr. Boles, is being considered that would require the firms to hire separate chairpersons to oversee management. GM Seeks Workers' Support for CEO John D. Stoll and Sharon Terlep posted in the WSJ blog that GM officials sent salaried engineers an e-mail on Tuesday asking them to sign on to a letter asking that CEO Rick Wagoner and other managers stay at the company. Mr. Stoll and Ms. Terlep say that the letter would be sent to Sen. Christopher J. Dodd and the Senate Banking Finance Committee. According to the blog, Sen. Dodd's committee wqould vote this week on a US$15 billion bailout package for GM, Ford Motor Co. and Chrysler LLC. The blog says that Sen. Dodd suggested on Sunday that Mr. Wagoner step aside. Mr. Stoll and Ms. Terlep quoted GM spokesperson Tom Wilkinson as saying, "There is generally a lot of support for Rick among employees at GM." The lobbying effort wasn't initiated by Mr. Wagoner or other ranking executives, the blog states, citing Mr. Wilkinson. Bailout Has Lukewarm Support From Public Easha Anand at WSJ reports that the lukewarm support that GM, Ford Motor, and Chrysler's government loan request gets from the public reflects the situation in the Congress. According to WSJ, the requested government bailout has backers in the Congress, but few "champions." A new Wall Street Journal/NBC News poll, conducted from Dec. 5 to Dec. 8 and which had a margin of error of plus or minus three percentage points, indicates that about 46% of U.S. citizens approve of giving aid to the three auto companies, while about 42% disapprove. "It would be nice to bail them out, but you have to take into consideration what auto workers and executives have been paid for years. The country seems to be spending money they do not have, we're going further and further into debt," WSJ quoted Philip Hall, a 56-year-old mason who drives a GMC truck, as saying. Josh Mitchell at WSJ relates that while the White House and top Democrats have reached an agreement on the principles of a US$15 billion short-term aid package to the automakers, Republicans are torn between the need to bail out those companies and opposition based on fiscal principles. According to the report, rank-and- file Democrats said they are in favor of a bailout, while some conservative Republicans are against any package that didn't include the firms' bankruptcy filing. WSJ reports that Senate Majority Leader Harry Reid said he hoped for a vote by Wednesday on the legislative proposals for the bailout. Among the conditions in the bailout is that the government would acquire a stake in the companies. Congressman Opposes Bailout for Chrysler Greg Hitt at WSJ reports that Congressman Steve Kagen has opposed a bailout for Chrysler LLC, arguing that a take over by parent company Cerberus Capital Management LP of NewPage Corp. led to closures of two factories in Northeast Wisconsin, eliminating 750 jobs, Alex P. Kellogg at WSJ states. WSJ relates that Chrysler CEO Robert Nardelli was also questioned during congressional hearings last week on why he doesn't seek help from Cerberus Capital. Mr. Nardelli, according to the report, said that he already did but was turned down. Mr. Kagen urged Cerberus Capital to put some of its "billions of dollars in assets" on the table before Congress offers Chrysler any kind of bailout, the report says. According to WSJ, Mr. Kagen suggested that Cerberus Capital could sell the mills it closed in Wisconsin and use that money to boost Chrysler. "If Cerberus truly believes Chrysler is a good investment, then Cerberus should put up some of their own money. The question is... why are you coming to taxpayers if it's not such a good deal?" Mr. Kagen supports a bailout for General Motors Corp. and Ford Motor Co., WSJ reports. ********* 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 ***