/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/081215.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 Monday, December 15, 2008, Vol. 11, No. 248 Headlines A U S T R A L I A AREA HOMELOANS: Members and Creditors Hear Wind-Up Report CROSSML PTY: Members and Creditors Hear Wind-Up Report GLOBAL SECURE: Members and Creditors Hear Wind-Up Report HAYWARD TRUCKING: Members and Creditors Hear Wind-Up Report HOLOZ PTY: Placed Under Voluntary Liquidation KEYWEST COMMUNICATIONS: Commences Liquidation Proceedings MEGIPO #1: Placed Under Voluntary Liquidation MEGIPO #2: Placed Under Voluntary Liquidation MURLUKE INDUSTRIES: Members Receive Wind-Up Report NICE THREADS: Appoints Kugel and Warner as Liquidators SOUTHERN HIGHLANDS: Members and Creditors Hear Wind-Up Report TIAC PTY: Inability to Pay Debts Prompts Wind-Up VINCENT SERVENTY: Members' Receive Wind-Up Report WONSANA (AUST): Inability to Pay Debts Prompts Wind-Up WORLDWIDE WORKERS: Declares Dividend for Unsecured Creditors C H I N A CHINA CONSTRUCTION: Plans to Raise Over US$1.5 Bil. in Funds CHINA CONSTRUCTION: To Open First Branch in Europe * CHINA: Leading Power Firms May Incur CNY70 Bil. Losses This Year G U I N E A RIO TINTO: Guinea Gov't. Wants Northern Simandou Mine Relinquished H O N G K O N G ADVANTAGE CHINA: Members' Final Meeting Set for January 8 APEX YIELD: Placed Under Voluntary Liquidation ATTRACTION JEWELLERY: Creditors' Meeting Set for January 6 CHARLES SCHWAB: Sole Member to Hold Final Meeting on January 13 CHARLES SCHWAB: Members' Final Meeting Set for January 13 CLEARWATER CAPITAL: Fitch Says Average IDR Unchanged at "B-"/"CCC" CORAL HOLDINGS: Placed Under Voluntary Liquidation HONG KONG TECHNICAL: Members' Final Meeting Set for January 13 J&C INVESTMENTS: Creditors' Proofs of Debt Due on January 12 JADE SOURCE: Court to Hear Wind-Up Petition on January 7 TOTAL PERSON: Pui Chiu Wing Ceases to Act as Liquidator WHITE WAVE: Wing Ceases to Act as Liquidator I N D I A GENERAL MOTORS: Hires Lawyers & Bankers to Mull Chapter 11 Filing GENERAL MOTORS: Ind. Fiduciary Extends Share Trading Blackout GENERAL MOTORS: Suppliers Seek Advance Payments TATA STEEL: To Merge Corus Unit Next Year J A P A N CABS LTD: S&P Raises Rating on Class B Notes to 'B-' From 'CCC-' ELPIDA MEMORY: Major Shareholder Cuts Stake by 1% ELPIDA MEMORY: Resets Convertible Bond Buyback to January 9 EXCELLENT COLLABORATION: Moody's Cuts Rating on Cl. D Bonds to Ba3 JMAC4 TRUST: Fitch Places 'BB' Rating on Class E to Negative Watch NISSIN SERVICER: Fitch Downgrades Servicer Rating to 'CSS3-' K O R E A HYNIX SEMICONDUCTOR: Banks Deny Capital Cut HYUNDAI MOTOR: Reassigns 221 Jobless Workers * KOREA: 15 Insurance Firms' Solvency Ratios Drop L E B A N O N * Moody's Changes Outlook on 'B3' Sovereign Ratings to Positive * Moody's Changes 'B3' Rating Outlook on Four Lebanese Banks M O N G O L I A KHAN BANK: Fitch Affirms Long-Term Issuer Default Ratings at 'B+' N E W Z E A L A N D ARA MAHI: Court to Hear Wind-Up Petition on January 28 BOSTON FINANCE: 21c in the Dollar Payout, Below Forecasts CUT IT: Court Hears Wind-Up Petition EASTERN HI FI: Raising NZ$3 Million to Retire Debts ELLIS LOGGING: Court Hears Wind-Up Petition H. M. BURT: Court Hears Wind-Up Petition HYBRID HOMES: Court Hears Wind-Up Petition HYGIENE INTENSIVE: Court Hears Wind-Up Petition IGIENIX LTD: Court Hears Wind-Up Petition KENWYN TRUST: Court to Hear Wind-Up Petition on January 30 KIWI PROPERTY: Creditors' Proofs of Debt Due on December 19 PEGASUS PROPERTY: Court Hears Wind-Up Petition RANGITOTO HOLDINGS: Court Hears Wind-Up Petition SYDNEY PRODUCTIONS (NO. 3): Court Hears Wind-Up Petition SYDNEY PRODUCTIONS (NO. 2): Court Hears Wind-Up Petition TERRAFIRMA LANDSCAPING: Court Hears Wind-Up Petition THE HOUSE: Court Hears Wind-Up Petition * NEW ZEALAND: Total Retail Sales Drop 1.3% in October S I N G A P O R E CHARTERED SEMICONDUCTOR: Sees Wider Fourth Quarter Net Loss FONTERRA BRANDS: Creditors' Proofs of Debt Due on January 5 HOCK SOON: Court Enters Wind-Up Order MHC HOLDINGS: Creditors' Proofs of Debt Due on January 16 SLENDER SHAPES: Court Enters Wind-Up Order TMS SHIP: Court Enters Wind-Up Order T H A I L A N D TRUE CORP: S&P Cuts Corporate Credit Rating to 'B'; Outlook Neg. V I E T N A M VIETNAM: S&P Keeps 'BB/B' Sovereign Credit Ratings; Outlook Neg. X X X X X X X X * Credit Unions to Extend US$10 Billion in Loans to Detroit 3 - - - - - ================= A U S T R A L I A ================= AREA HOMELOANS: Members and Creditors Hear Wind-Up Report --------------------------------------------------------- The members and creditors of Area Home Loans Pty Ltd met on Nov. 24, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Brent Kijurina c\o Hall Chadwick 31 Market Street, Level 29 Sydney NSW 2000 CROSSML PTY: Members and Creditors Hear Wind-Up Report ------------------------------------------------------ The members and creditors of Crossml Pty Limited met on Nov. 10, 2008, and heard the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Blair Pleash Hall Chadwick 31 Market Street, Level 29 Sydney NSW 2000 GLOBAL SECURE: Members and Creditors Hear Wind-Up Report -------------------------------------------------------- The members and creditors of Global Secure Messaging Pty Limited met on November 13, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: M. J. M. Smith Smith Hancock 88 Phillip Street, Level 4 Parramatta NSW 2150 HAYWARD TRUCKING: Members and Creditors Hear Wind-Up Report ----------------------------------------------------------- The members and creditors of Hayward Trucking Pty Ltd met on November 20, 2008, and heard the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: A. R. Nicholls Nicholls & Co 459 Peel Street, Suite 6 Tamworth NSW 2340 HOLOZ PTY: Placed Under Voluntary Liquidation --------------------------------------------- During a general meeting held on October 7, 2008, the members of Holoz Pty Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Joseph Andrew Murphy Greg Rodgers & Associates Certified Practising Accountants 34 Allowrie Street Jamberoo NSW 2533 KEYWEST COMMUNICATIONS: Commences Liquidation Proceedings --------------------------------------------------------- The members of Keywest Communications Pty Limited met on Oct. 10, 2008, and resolved to voluntarily liquidate the company's business. The company's liquidator is: Kwai Fong Yip #400 North Tower 5811 Cooney Road Richmond British Columbia V6X 3M1 Canada MEGIPO #1: Placed Under Voluntary Liquidation --------------------------------------------- At an extraordinary general meeting held on October 8, 2008, the members of Megipo #1 Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Adam Farnsworth c/o Hills Insolvency Services Pty Ltd PO Box 915 Rockdale NSW 2216 Telephone:(02) 9599 7945 Facsimile:(02) 9599 7946 MEGIPO #2: Placed Under Voluntary Liquidation --------------------------------------------- At an extraordinary general meeting held on October 8, 2008, the members of Megipo #2 Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Adam Farnsworth c/o Hills Insolvency Services Pty Ltd PO Box 915 Rockdale NSW 2216 Telephone:(02) 9599 7945 Facsimile:(02) 9599 7946 MURLUKE INDUSTRIES: Members Receive Wind-Up Report -------------------------------------------------- The members of Murluke Industries Pty Ltd met on November 25, 2008, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: John Barry Murphy 6 Norfolk Place Carlingford NSW 2118 NICE THREADS: Appoints Kugel and Warner as Liquidators ------------------------------------------------------ On October 7, 2008, Steven Kugel and Anthony Warner were appointed as liquidators of Nice Threads Pty Limited. The Liquidators can be reached at: Steven Kugel Anthony Warner Telephone:(02) 8243 5200 Web site: http://www.liquidationdirect.com.au SOUTHERN HIGHLANDS: Members and Creditors Hear Wind-Up Report ------------------------------------------------------------- The members and creditors of Southern Highlands Rail Pty Limited met on Nov. 13, 2008, and heard the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Neil R. Cussen Deloitte Touche Tohmatsu Grosvenor Place 225 George Street Sydney NSW 2000 TIAC PTY: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------- The members of Tiac Pty Limited met on September 19, 2008, and resolved to voluntarily liquidate the company's business due to its inability to pay debts when it fall due. The company's liquidator is: Steven Gladman c/o Hall Chadwick 31 Market Street, Level 29 Sydney NSW 2000 VINCENT SERVENTY: Members' Receive Wind-Up Report ------------------------------------------------- The members of Vincent Serventy & Associates Pty Ltd met on November 7, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. Douglas Arthur Trood is the company's liquidator. WONSANA (AUST): Inability to Pay Debts Prompts Wind-Up ------------------------------------------------------ The members of Wonsana (Aust) Pty Limited met on October 1, 2008, and resolved to voluntarily liquidate the company's business due to its inability to pay debts when it fall due. The company's liquidator is: Steven Gladman c/o Hall Chadwick 31 Market Street, Level 29 Sydney NSW 2000 WORLDWIDE WORKERS: Declares Dividend for Unsecured Creditors ------------------------------------------------------------ Worldwide Workers Pty Limited, which is in liquidation, declared dividend for its unsecured creditors on November 18, 2008. Only creditors who were able to file their proofs of debt by Nov. 11, 2008, were included in the company's dividend distribution. The company's liquidator is: I. J. Purchas RMG Partners 88 Pitt Street, Level 12 Sydney NSW 2000 ========= C H I N A ========= CHINA CONSTRUCTION: Plans to Raise Over US$1.5 Bil. in Funds ------------------------------------------------------------ China Construction Bank plans to raise over US$1.5 billion in private equity and investment funds to invest in sectors from health care and consumption to aviation, Reuters reports citing head of China Construction Bank's investment arm. According to Reuters, Hu Zhanghong, chief executive of CCB International, told reporters his firm planned to raise a CNY5 billion ($730 million) health care investment fund, China's first. CCB International, Reuters says, will manage the fund jointly with a U.S. Firm. Reuters relates that the fund will focus on investing in companies producing medicine and medical equipment and providing medical services, targeting returns of over 20 percent annually. Meanwhile, Reuters notes, China Construction also planned to raise HK$800 million ($103.2 million) via a mutual fund in Hong Kong that will focus on Chinese consumer stocks listed in the city. According to the report, Wang Gui Ya, CCB International's general manager said, the bank will set up a CNY4-5 billion private equity fund before the end of the year that will target aviation companies. 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. CHINA CONSTRUCTION: To Open First Branch in Europe -------------------------------------------------- Xinhua News Agency reported that China Construction Bank had won the approval of Britain's Financial Services Authority to establish a subsidiary in London. The proposed subsidiary, Xinhua relates, would offer deposit- taking, lending, trade finance, foreign exchange dealing and other banking services. According to the report, this is the first subsidiary bank for China Construction in Europe. 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. * CHINA: Leading Power Firms May Incur CNY70 Bil. Losses This Year ------------------------------------------------------------------ China's power companies may incur CNY70 billion losses this year due to rising fuel costs and slowing electricity demand, People's Daily Online reports citing an industry association official. Xue Jing, director of the department of statistics and information under China Electricity Council (CEC), was quoted by the Daily Online as saying: "By now the power companies have posted losses of over CNY20 billion, and I think their full-year losses will exceed CNY70 billion." Daily Online relates that according to a source with one of China's five leading power companies, the country's five biggest power generators posted total losses of CNY26.8 billion from January to October. These leading power companies are: -- China Huaneng Group lost CNY3.4 billion; -- China Guodian Corp had a deficit of CNY6.55 billion; -- China Datang Corp's losses were about CNY6 billion -- China Huadian Corp recorded a loss of CNY6.07 billion; and -- China Power Investment Corp's losses were about CNY4.85 billion. "Among the five companies' coal-fired power plants, 90 percent are loosing money right now and 70 percent of them have a deficit of more than 100 million yuan," the Daily Online cited the source as saying. "And I expect the percentage to grow later this year." =========== G U I N E A =========== RIO TINTO: Guinea Gov't. Wants Northern Simandou Mine Relinquished ------------------------------------------------------------------ Bloomberg News reported that Rio Tinto Group has been ordered by the government of Guinea to hand over half of the country's Simandou deposit to a company controlled by Israeli diamond investor Beny Steinmetz. Rio Tinto Group confirmed in a statement it has received correspondence from the Guinean Minister of Mines which appears to indicate that the Council of Ministers has instructed the Ministry of Mines and Geology to effect a compulsory relinquishment of the northern half of the Simandou Mining Concession whilst confirming Rio Tinto's entitlement to the southern half of that Concession. According to Rio Tinto, it has been in active negotiation in good faith with the Government of Guinea since August 2008 following receipt of correspondence from the President of Guinea purporting to rescind the Simandou Mining Concession. Rio Tinto said it remains of the view that it has complied with all its obligations in relation to the Concession such that it is entitled to hold and retain the entire Concession, and will continue working in good faith with the Government of Guinea to seek to resolve this matter on that basis. As reported in the Troubled Company Reporter-Europe on Dec. 11, 2008, Rio Tinto plans to further reduce its net debt by US$10 billion by the end of 2009. The Group's net debt has reduced by US$3.2 billion in the period from June 30 to October 31, 2008 to US$38.9 billion. Bloomberg News related BHP Billiton abandoned its hostile US$66 billion bid for Rio Tinto plc on Nov. 25 citing Rio's debt and slumping demand for commodities. BHP Billiton, in a November 27 statement, confirmed its offer for Rio Tinto plc has lapsed and that, given the inter-conditionality of its offers for Rio Tinto plc and Rio Tinto Limited, its offer for Rio Tinto Limited has also lapsed. Rio Tinto disclosed total capital expenditure for the Group in 2009 is forecast to reduce from over US$9 billion to US$4 billion, of which US$2 billion will be sustaining capital expenditure. There will be impacts on projects across the board and stakeholder engagements are currently underway. Some projects will be canceled and others deferred until markets recover, the Group said. To further reduce costs, Rio Tinto will be cutting its global headcount by 14,000, comprising 8,500 contractor jobs and 5,500 employee roles, will consolidate offices around the Group, including its London head office and will accelerate outsourcing and off-shoring of IT and procurement in 2009. About Rio Tinto Rio Tinto -- http://www.riotinto.com/-- is an international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed public company, and Rio Tinto Limited, which is a public company listed on the Australian Securities Exchange. Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa. =============== H O N G K O N G =============== ADVANTAGE CHINA: Members' Final Meeting Set for January 8 --------------------------------------------------------- The members of Advantage China Holdings Limited will meet hold their final meeting on January 8, 2009, at Room 1509C.C. Wu Building, 302-8 Hennessy Road, in Wanchai, Hong Kong. At the meeting, Seto Sau Kuen Christine, the company's liquidator, will give a report on the company's wind-up proceedings amd property disposal. APEX YIELD: Placed Under Voluntary Liquidation ---------------------------------------------- At an extraordinary general meeting held on December 5, 2008, the members of Apex Yield Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Yang Sih Yu, Samuel Sea View Estate, Room 1, 1st Floor, Block A Sea View Estate, 2-8 Watson Road North Point, Hong Kong ATTRACTION JEWELLERY: Creditors' Meeting Set for January 6 ---------------------------------------------------------- The creditors of Attraction Jewellery Co Limited will meet on January 6, 2009, at 10:00 a.m., for the purposes provided for in Sections 241, 242, 243, 244, 251 and 255A of the Companies Ordinance. CHARLES SCHWAB: Sole Member to Hold Final Meeting on January 13 --------------------------------------------------------------- The sole member of Charles Schwab Hong Kong Nominees Limited will hold the final general meeting on January 13, 2008, at 10:30 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cheng Pik Yuk Three Pacific Place, Level 28 1 Queen's Road East Hong Kong CHARLES SCHWAB: Members' Final Meeting Set for January 13 --------------------------------------------------------- The members of Charles Schwab Hong Kong Securities Limited will their final general meeting on January 13, 2008, at 10:00 a.m., to hear the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cheng Pik Yuk Three Pacific Place, Level 28 1 Queen's Road East Hong Kong CLEARWATER CAPITAL: Fitch Says Average IDR Unchanged at "B-"/"CCC" ------------------------------------------------------------------ Fitch Ratings has affirmed the ratings of Clearwater Capital Partners CLO I Pte. Ltd's issuance of floating-rate notes due 2014 and assigned Outlooks: -- US$10.70 million Class B senior secured notes affirmed at 'AA'; Stable Outlook; -- US$7.30 million Class C senior secured deferrable notes affirmed at 'A'; Stable Outlook; and -- US$5.84 million Class D senior secured deferrable notes affirmed at 'BBB'; Stable Outlook. The transaction, a static cash flow collateralized loan obligation, is a securitization of primarily Asian performing and restructured loans and high yield bonds. The portfolio is not granular - due to scheduled amortizations, the current portfolio contains just 16 obligors (US$95.21 million) as compared with 22 obligors (US$113.48 million) in November 2007. In addition, the portfolio is heavily concentrated in Asian emerging market countries, most notably the Philippines (21.64%), Malaysia (20.73%) and Indonesia (18.81%). Hong Kong currently represents a further 17.47% of the portfolio. Despite these risk factors, the transaction has continued to perform well. The Long-term Issuer Default ratings of each non- publicly rated asset have been reviewed by the agency's corporate ratings group as part of this surveillance review and the credit quality of the portfolio has remained stable, with the weighted average rating remaining unchanged at 'B-' (B minus)/'CCC'. Principal proceeds have been used to repay Class A in full and decrease the notional size of Class B to US$10.70 million from US$14.60 million at closing. The rating affirmations and Stable Outlooks reflect the high level of defaults (as measured by both obligor default and emerging market country default) and low levels of recovery that the transaction is able to withstand and still see Classes B, C, and D repaid in full. Class B currently represents just 11.24% of the current portfolio notional and Classes C and D 7.67% and 6.13% respectively. Should the current repayment schedule continue to be met, Fitch anticipates that Class B will be paid in full in just over six months and Classes C and D in just over one year. This headroom is reflected in the high over-collateralization and interest coverage levels of the rated notes. Since November 2007, Class B's reported OC has increased to 5.94x from 2.63x and Class C's to 3.53x from 2.26x. Fitch's estimate of the OC of Class D (not a reporting requirement) is currently 2.66x. The reported OC levels, in accordance with the transaction documentation, have made appropriate par-value adjustments for the 'CCC' and below rated assets, mainly based on the lower of Fitch's recovery rate assumptions and available market quotations. The balance in the issuer's interest reserve account has remained at US$4.3 million, which can be used to enhance the timely payment of senior expenses and interest payments. This amount can cover one year's worth of interest payments, based on the recent quarterly funding cost level of the issuer. The rating of Class B addresses the ultimate repayment of principal at maturity and the timely payment of interest according to the terms of the notes. For classes C and D, the ratings address the ultimate payment of principal and interest, including any deferred interest, at maturity according to the terms of the notes. CORAL HOLDINGS: Placed Under Voluntary Liquidation -------------------------------------------------- The members of Coral Holdings Limited met on December 4, 2008, and resolved to voluntarily liquidate the company's business. The company's liquidator is: John Robert Lees John Lees & Associates Limited 1904 Hong Kong Club Building 3A Chater Road Central, Hong Kong HONG KONG TECHNICAL: Members' Final Meeting Set for January 13 -------------------------------------------------------------- The members of Hong Kong Technical Services Limited will hold their final meeting on January 13, 2008, at 10:00 a.m., at the 6th Floor of Sunning Plaza, 10 Hysan Avenue, in Causeway Bay, Hong Kong. At the meeting, Alan Chung Wah Tang and Wong Kwok Man, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. J&C INVESTMENTS: Creditors' Proofs of Debt Due on January 12 ------------------------------------------------------------ The creditors of J&C Investments Limited are required to file their proofs of debt by January 12, 2008, to be included in the company's dividend distribution. The company commenced liquidation proceedings on December 2, 2008. The company's liquidator is: Ng Kin Yung, Tony Greenwich Centre, 6th Floor 260 King's Road North Point, Hong Kong JADE SOURCE: Court to Hear Wind-Up Petition on January 7 -------------------------------------------------------- A petition to have Jade Source International Group Limited's operations wound up will be heard before the High Court of Singapore on January 7, 2008, at 9:30 a.m. Chan Kong Ping filed the petition against the company on Nov. 5, 2008. TOTAL PERSON: Pui Chiu Wing Ceases to Act as Liquidator ------------------------------------------------------ On December 10, 2008, Pui Chiu Wing ceased to act as liquidator of Total Person International Limited. The company's former Liquidator can be reached at: Pui Chiu Wing Parklane Centre, Room 10, 16th Floor 25 Kin Wing Street Tuen Mun, N.T. WHITE WAVE: Wing Ceases to Act as Liquidator -------------------------------------------- On December 10, 2008, Pui Chiu Wing ceased to act as liquidator of White Wave International Limited. The company's former Liquidator can be reached at: Pui Chiu Wing Parklane Centre, Room 10, 16th Floor 25 Kin Wing Street Tuen Mun, N.T. ========= I N D I A ========= GENERAL MOTORS: Hires Lawyers & Bankers to Mull Chapter 11 Filing ----------------------------------------------------------------- Jeffrey McCracken, John D. Stoll, and Greg Hitt at The Wall Street Journal report that people familiar with the matter said General Motors Corp. has hired lawyers and bankers to mull over a possible Chapter 11 filing by the company. According to WSJ, GM has retained Harvey Miller of Weil Gotshal & Manges LP as bankruptcy counsel. GM, says the report, has also hired: -- restructuring veteran Jay Alix, -- Evercore Partners' William Repko, and -- Blackstone Group's Arthur Newman. WSJ relates that the hiring of bankruptcy experts indicates GM's increasing desperation as it waits for government financial assistance, which is being considered in the Congress. WSJ states that while Senate Majority Leader Harry Reid hopes to push a bill through this week, Sen. John Thune says that there is a lot of resistance on the bailout. Citing a source, WSJ reports that GM CEO Rick Wagoner has been hesitant to consider the company's possible bankruptcy on fears that it would discourage potential car buyers. A bankruptcy filing, according to the report, would also be very expensive and difficult due to tight credit markets. Mr. Wagoner is still against filing for Chapter 11, the report states. The board is keeping all options open, says WSJ, citing GM director Kent Kresa. GM's board is putting Mr. Wagoner to deepening scrutiny, meeting three times a week and receiving constant updates on the financial situation, the report states. Mr. Kresa, according to the report, said that the GM management was constantly caught off guard by auto sale drops. Executives kept changing sales projections, but the managers never fully understood how bad the situation could get, the report syas, citing Mr. Kresa. WSJ states that GM now operates near its minimum-required funding options, and GM executives are worried that suppliers could tighten credit terms and the government could swiftly take back its loans. "This is an urgent situation and we need to deal with it," the report quoted Mr. Kresa as saying. GM will be meeting with its dealers this week to discuss a new advertising campaign to increase sales, WSJ report. According to WSJ, GM will also discuss the possible closure of its Saturn division or put it into bankruptcy protection, as it is a separate entity. Peter A. McKay at WSJ relates that GM led in stock declines on Thursday, sliding 10.4%. Ellen Kullman Leaves Board for DuPont CEO Post DuPont President Ellen J. Kullman has resigned from GM's Board of Directors, effective Dec. 11, 2008, to focus on her new responsibilities at DuPont. Ms. Kullman will become chief executive officer of DuPont on Jan. 1, 2009. "I have been proud to serve on GM's Board for four years," Ms. Kullman said. "GM has made important advancements across a number of fronts and I wish the GM team continued success as they work to overcome the current challenges." "I understand and respect Ellen's need to focus on DuPont right now," noted George M.C. Fisher, presiding director of GM's Board. "She's been a great Board member for GM, and we'll miss her." Ms. Kullman served on GM's Audit Committee and Investment Funds Committee. There are no immediate plans to replace her on those committees. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Corporation offers products under the Chevrolet brand in India through its wholly owned subsidiary, General Motors India. GM India has 95 sales points and over 110 service centers. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. As reported in the Troubled Company Reporter on Nov. 10, 2008, General Motors Corporation's balance sheet at Sept. 30, 2008, showed total assets of US$110.425 billion, total liabilities of US$170.3 billion, resulting in a stockholders' deficit of US$59.9 billion. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GENERAL MOTORS: Ind. Fiduciary Extends Share Trading Blackout ------------------------------------------------------------- General Motors Corp. disclosed in a regulatory filing with the Securities and Exchange Commission that State Street Bank and Trust Company, which serves as the independent fiduciary of the GM Common Stock Fund in the Plans, has extended until further notice the temporary suspension on purchases of the GM Common Stock Fund that began on September 30. General Motors disclosed on Sept. 30, 2008, that it had suspended purchases of its common stock, par value $1-2/3 per share, by employees in GM's Savings-Stock Purchase Plan and the Personal Savings Plan. All purchases of Common Stock under the Plans were suspended because the Plans had issued all of their registered shares of Common Stock. This suspension was the result of recent unexpectedly high demand among the Plans' participants due to increased employee interest and a lower market price for the Common Stock. The demand significantly exceeded the usual volume and exhausted the supply of registered stock more quickly than the administrators of the Plans foresaw. This trading blackout began on Sept. 30, 2008, and was expected to end the week of Nov. 9, 2008, when GM planned to file a registration statement with the SEC registering additional shares for the Plans. State Street determined that, due to GM's earnings announcement and related information about GM's business, it was not ppropriate to allow additional investments by participants into the GM Common Stock Fund. As independent fiduciary, State Street is specifically authorized pursuant to its agreements with GM and the Plan documents to impose restrictions on purchases or exchanges into and out of the GM Common Stock Fund at any time. GM has not registered additional shares of GM Common Stock for the Plans with the SEC. Plan participants, other than directors and officers, are not prevented from selling Common Stock through the Plans, or buying or selling Common Stock outside the Plans, during the blackout period. Based on the provisions of the Plans, these participants may also at any time exchange shares in the Common Stock Fund for other investment options or change their contribution election. The contributions of participants directed to the GM Common Stock Fund, will be invested in the default fund for the Plan in which they participate, unless they provide new instructions. This means that, until the temporary suspension for Common Stock purchases is removed, that contributions to the S-SPP will be invested in the Pyramis Strategic Balanced Commingled Pool investment option and that contributions to the PSP will be invested in the Pyramis Active Lifecycle Commingled Pool Investment option closest to the year that the participant will attain the age of 65. On Nov. 21, 2008, GM sent a notice to its directors and executive officers informing them of the trading restrictions in the Common Stock Fund imposed by State Street and that the blackout period instituted on Sept. 30, 2008, would continue. During the blackout period, GM's directors and executive officers will be prohibited from directly acquiring, disposing of or transferring any equity securities of GM acquired by them in connection with their service and employment with GM in such capacities. The notice was sent to ensure compliance with Section 306(a) of the Sarbanes-Oxley Act of 2002. In accordance with the unforeseeable circumstance exemption under Section 306(a) GM determined that it was unable to give advance notice of the blackout period to the directors and executive officers. A full-text copy of the notice is available for free at http://ResearchArchives.com/t/s?360e About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Corporation offers products under the Chevrolet brand in India through its wholly owned subsidiary, General Motors India. GM India has 95 sales points and over 110 service centers. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. As reported in the Troubled Company Reporter on Nov. 10, 2008, General Motors Corporation's balance sheet at Sept. 30, 2008, showed total assets of US$110.425 billion, total liabilities of US$170.3 billion, resulting in a stockholders' deficit of US$59.9 billion. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of US$16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. GENERAL MOTORS: Suppliers Seek Advance Payments ----------------------------------------------- Some auto-parts suppliers have asked General Motors Corp. for advance payments, after the company warned that it would run out if it fails to secure loans from the government, Jeff Green at Bloomberg News reports, citing people familiar with the matter. According to Bloomberg, the sources said that GM has rejected the requests. The report says that GM pays its 3,600 suppliers about 45 days after getting an invoice. Advance payment requests started in the last several weeks but have not disrupted vehicle production, the report states, citing a person familiar with the matter. GM Purchasing Vice President Bo Andersson denied to the trade publication Automotive News on Nov. 25 that suppliers were seeking payment in advance or shorter turnarounds on invoices. GM spokesperson Dan Flores, Bloomberg relates, said, "Despite the current economic challenges, GM remains committed to maintaining a strong, open relationship with our suppliers. GM remains focused on maintaining payment terms and being a prompt payer." Car Czar Appointment May Spur Holders' Demand for Payouts Banc of America Securities analyst Glen Taksler said that the appointment of a "car czar" to supervise the government bailout program has raised the possibility of a bankruptcy event for credit-default swaps. A car czar might trigger "what's known as an event in the vast market for credit-default swaps," which would cause holders of GM and Ford Motor Co. credit protection to demand payouts, WSJ says, citing Banc of America. Mr. Taksler said that The International Swaps and Derivatives Association, a standard-setter for credit-derivatives trading, identified the appointment of an administrator, trustee, or similar official to oversee all or most of an entity's assets as a trigger event for a bankruptcy filing, WSJ relates. WSJ quoted Mr. Taksler as saying, "The result may depend on the exact wording of a potential bailout package. We find arguments both for and against an autos czar triggering CDS. ... The actual process is likely to be determined through ISDA." According to WSJ, the Depository Trust & Clearing Corp. said that institutions like banks and insurance firms hold $43.15 billion in credit protection on GM debt. WSJ relates that excluding contracts sold by the same institutions holding GM DCS, there is about $3.3 billion in GM CDS outstanding, while the DTCC said that for Ford Motor debt, there is about $34 billion in gross CDS and about $2.8 billion in net swaps outstanding. Chrysler LLC, according to the report, is a private company and doesn't trade in the CDS market. Corey Boles, Patrick Yoest, and Josh Mitchell posted on The Wall Street Journal blog that the government financial bailout bill being considered in the House of Representatives would require Chrysler's parent, Cerberus Capital Management, to put up equity warrants for Chrysler to get an emergency loan, because Chrysler is a private company. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Corporation offers products under the Chevrolet brand in India through its wholly owned subsidiary, General Motors India. GM India has 95 sales points and over 110 service centers. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. As reported in the Troubled Company Reporter on Nov. 10, 2008, General Motors Corporation's balance sheet at Sept. 30, 2008, showed total assets of $110.425 billion, total liabilities of $170.3 billion, resulting in a stockholders' deficit of $59.9 billion. * * * As reported in the Troubled Company Reporter on Nov. 11, 2008, Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on General Motors Corp. to 'CCC+' from 'B-' and removed them from CreditWatch, where they had been placed with negative implications on Oct. 9, 2008. S&P said that the outlook is negative. Fitch Ratings, as reported in the Troubled Company Reporter on Nov. 11, 2008, placed the Issuer Default Rating of General Motors on Rating Watch Negative as a result of the company's rapidly diminishing liquidity position. Given the current liquidity level of $16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default. With virtually no further access to external capital and little potential for material asset sales, cash holdings are expected to shortly reach minimum required operating levels. Fitch placed these on Rating Watch Negative: -- Senior secured at 'B/RR1'; -- Senior unsecured at 'CCC-/RR5'. As reported in the Troubled Company Reporter on June 24, 2008, DBRS has placed the ratings of General Motors Corp. and General Motors of Canada Limited Under Review with Negative Implications. The rating action reflects the structural deterioration of the company's operations in North America brought on by high oil prices and a slowing U.S. Economy. TATA STEEL: To Merge Corus Unit Next Year ----------------------------------------- Tata Steel Limited plans to merge its Corus subsidiary next year in a move to cut cost in its UK operations, The Times of India reports citing British Sunday newspaper. According to the Times, the newspaper said that the plan could cause plant closures and job losses across the UK at a time when Corus and unions are trying to prevent redundancies by discussing potential pay cuts of up to 10% for the firm's 25,000 workers. The proposed merger, the Time recalls, was part of the company's plans to cut costs in the UK by GBP350 million (US$521 million) following its acquisition of Corus, which was agreed in 2006. Meanwhile, citing the Independent newspaper, the Time adds Corus was threatening to move its European operations to China unless governments overhauled carbon emission regulations. About Tata Steel Limited Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- is a diversified steel producer. It has operations in 24 countries and commercial presence in over 50 countries. Its operations predominantly relate to manufacture of steel and ferro alloys and minerals business. Other business segments comprises of tubes and bearings. Tata Metaliks Limited, which is engaged in the business of manufacturing and selling pig iron, became a subsidiary of the Company with effect from Feb. 1, 2008. * * * Tata Steel Limited continues to carry a "BB" Standard & Poor's rating on its of US$750 million and US$500 million senior unsecured bank loans. As reported in the Troubled Company Reporter-Asia Pacific on October 24, 2008, Moody's Investors Service changed Tata Steel Ltd's outlook on its Ba1 corporate family rating to negative from stable. This reflects the change in outlook for Tata Steel UK's rating (formerly Corus) from stable to negative and the close linkages between the credit profiles of the two entities. "The change in outlook reflects the more challenging operating conditions now facing Tata Steel UK as a result of the likely deterioration in demand in Europe and the UK in the next 18 months, with declining steel prices and reduced production volumes," said Ivan Palacios, a Moody's AVP Analyst and lead analyst for Tata Steel. ========= J A P A N ========= CABS LTD: S&P Raises Rating on Class B Notes to 'B-' From 'CCC-' ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its rating on CABS Ltd. Master Trust Series 2005-1's class A floating-rate notes to 'BBB' from 'B', and its rating on the class B floating-rate notes to 'B-' from 'CCC-'. The upgrades reflect the signing of an agreement by the transaction parties that will introduce changes to the priority of payments, or the waterfall, among different series of transactions issued under the CABS Master Trust agreement. The aforementioned changes are expected to raise the amount of collections that would be distributed to payments for the Series 2005-1 transaction and boost credit enhancement for the rated notes. The underlying asset pool's default rate is declining due to a decrease in the amount of claims for refunds of overpaid interest. Nevertheless, S&P is concerned that obligors' creditworthiness could decline amid worsening economic conditions, causing the transaction's performance to deteriorate over the medium to long term. S&P will closely monitor whether the default rate would continue to decline with the decrease in the amount of refunds of overpaid interest, and how much impact deteriorating economic conditions would have on obligors' creditworthiness and the transaction's performance. On Sept. 14, 2007, originator Credia Co. Ltd. (the company's name has been changed to Phlox Co. Ltd.) filed for civil rehabilitation proceedings, which were applied on Sept. 21, 2007. Credia selected Kazaka Finance (the company's name has been changed to Neoline Capital Co. Ltd.) as a sponsor on April 25, 2008, and submitted a rehabilitation plan on May 21, 2008. (The rehabilitation plan was amended on June 27, 2008.) At a meeting on Aug. 20, 2008, creditors adopted the rehabilitation plan, which was approved by the Court on the same day. Approval of the rehabilitation plan was finalized on Sept. 17, 2008. Phlox Co. Ltd. took over all of Credia's operations on Oct. 1, 2008. The floating-rate notes issued under this transaction are ultimately secured by a pool of uncollateralized consumer loan receivables originated by Credia (Phlox Co. Ltd.). Ratings Raised CABS Ltd. Master Trust Series 2005-1 Floating rate notes due August 2014 Class To From Initial Issue Amount ----- -- ---- -------------------- A BBB B JPY8.7 bil. B B- CCC- JPY1.3 bil. ELPIDA MEMORY: Major Shareholder Cuts Stake by 1% ------------------------------------------------- Investment management firm AllianceBernstein L.P. is no longer Elpida Memory Inc's leading major shareholder after a reduction in the New York-based company's shareholding ratio on December 8, 2008, the Japanese DRAM supplier said in a statement. AllianceBernstein reduced its Elpida stake to 9.49% from 10.49% as of November 25, 2008. Elpida said it does not expect the change in ownership of the company's shares to affect its business performance. Japan-based Elpida Memory Inc. -- http://www.elpida.com.-- is a leading manufacturer of Dynamic Random Access Memory (DRAM) integrated circuits. The company's design, manufacturing and sales operations are backed by world class technology expertise. Its 300mm manufacturing facilities, Hiroshima Plant and a Taiwan-based joint venture Rexchip Electronics, utilize the most advanced manufacturing technologies available. Elpida's advanced portfolio features such characteristics as high-density, high-speed, low power and small packaging profiles. The company provides DRAM solutions across a wide range of applications, including high-end servers, mobile phone and digital consumer electronics. * * * On September 16, 2008, the Troubled Company Reporter-Asia Pacific, reported that Standard & Poor's Ratings Services revised the outlook on its long-term corporate credit rating on Elpida Memory Inc. to negative from stable. The downward revision is based on the increasing uncertainty over prospects for a future earnings recovery, as well as the company's ability to maintain its financial soundness over the next two to three years, amid further stagnation in the Dynamic Random Access Memory (DRAM) market. At the same time, S&P affirmed its 'BB-' long-term corporate credit rating and long-term senior unsecured debt ratings on the company. ELPIDA MEMORY: Resets Convertible Bond Buyback to January 9 ----------------------------------------------------------- Elpida Memory Inc. said it will accelerate the redemption of the outstanding Unsecured Convertible Bond Type Bonds with Stock Acquisition Rights issued on November 4, 2008. The redemption date of Elpida's 1st Series Unsecured Convertible Bond Type Bonds with Stock Acquisition Rights has been moved from November 4, 2009 to January 9, 2009. Face value of the early redemption is JPY100 per face value of JPY100. The company said it does not expect the move to affect its business performance in fiscal year 2008. Elpida meanwhile said it will review its capital expenditures plan for FY 2009 based on market conditions and competition in the DRAM industry. Overview of the bond issuance (1) Issue date: November 4, 2008 (2) Issue amount: JPY50 billion (3) Outstanding Bonds as of December 11: JPY50 billion (4) Interest rate: The Bonds will not bear any interest. (5) Original redemption date: November 4, 2009 About Elpida Memory Inc Japan-based Elpida Memory Inc. -- http://www.elpida.com.-- is a leading manufacturer of Dynamic Random Access Memory (DRAM) integrated circuits. The company's design, manufacturing and sales operations are backed by world class technology expertise. Its 300mm manufacturing facilities, Hiroshima Plant and a Taiwan-based joint venture Rexchip Electronics, utilize the most advanced manufacturing technologies available. Elpida's advanced portfolio features such characteristics as high-density, high-speed, low power and small packaging profiles. The company provides DRAM solutions across a wide range of applications, including high-end servers, mobile phone and digital consumer electronics. * * * On September 16, 2008, the Troubled Company Reporter-Asia Pacific, reported that Standard & Poor's Ratings Services revised the outlook on its long-term corporate credit rating on Elpida Memory Inc. to negative from stable. The downward revision is based on the increasing uncertainty over prospects for a future earnings recovery, as well as the company's ability to maintain its financial soundness over the next two to three years, amid further stagnation in the Dynamic Random Access Memory (DRAM) market. At the same time, S&P affirmed its 'BB-' long-term corporate credit rating and long-term senior unsecured debt ratings on the company. EXCELLENT COLLABORATION: Moody's Cuts Rating on Cl. D Bonds to Ba3 ------------------------------------------------------------------ Moody's Investors Service has downgraded the Series 1 Class B, C, and D specified bonds (final maturity July 7, 2010) issued by Excellent Collaboration Tokutei Mokuteki Kaisha. The complete rating action: Class B Specified Bonds -- Prior Rating: Aaa Prior Rating Action Date: March 23, 2007 -- Current Rating: Aa2 Class C Specified Bonds -- Prior Rating: A2 Prior Rating Action Date: March 23, 2007 -- Current Rating: Baa2 Class D Specified Bonds -- Prior Rating: Baa2 Prior Rating Action Date: March 23, 2007 -- Current Rating: Ba3 The downgrade does not affect the Class A bonds (rated Aaa), which are the most senior class. This is a CBO transaction subject to the SME-related financial policies of Tokyo and eight other municipalities (Osaka Prefecture, and the cities of Chiba, Yokohama, Kawasaki, Shizuoka, Osaka, Sakai, and Kobe), and arranged by Mizuho Bank, Ltd. The downgrade reflects the decline in the current credit enhancement to below the required prior rating levels, resulting from the default of two assets in the pool in November 2008. Unlike typical SME CDOs in Japan, which are backed by amortizing assets, this transaction is backed by bullet assets, wherein all of the principal is to be paid down in a single payment at maturity. Therefore, deterioration in the pool performance is more likely to result in credit decline of this transaction. The pool's performance was stable until February 2008, but four assets defaulted during March and June 2008, after which, there were no defaults in the pool until October 2008. The ongoing economic slump has led to the bankruptcy of a growing number of SMEs. To rescue these SMEs, the government is now developing and implementing measures to address the financial institutions' credit squeeze and expand guarantee programs. Moody's will maintain a close watch on the performance of this pool. JMAC4 TRUST: Fitch Places 'BB' Rating on Class E to Negative Watch ------------------------------------------------------------------ Fitch Ratings has placed two classes of JMAC4 Trust's trust beneficiary interests due February 2013 on Rating Watch Negative, affirmed the remaining classes and assigned Outlooks: -- JPY4.5 billion* Class A TBIs affirmed at 'AAA'; Outlook Stable; -- JPY1.0 billion* Class B TBIs affirmed at 'AAA'; Outlook Stable; -- JPY0.9 billion* Class C TBIs affirmed at 'A+'; Outlook Stable; -- JPY0.8 billion* Class D TBIs rated 'BBB'; placed on RWN; -- JPY0.5 billion* Class E TBIs rated 'BB'; placed on RWN; and -- Class X1 TBIs (dividend-only) affirmed at 'AAA'; Outlook Stable. * as of December 10, 2008 Fitch received information from the trustee on December 10, 2008, that one of the loans backed by multiple properties located in regional cities is highly likely to default. The subsequent rating action is due to the agency's concerns about the probability of loan recovery from the property sale in the current real estate market and the characteristics of the property portfolio. Fitch will resolve the RWN status after it carefully reviews additional information to be provided by the servicer, including the latest on the loan collection status, and the probability of recovery stemming from sale of properties from the servicer. As the other underlying loans, except the above loan, are performing in line with expectations and credit enhancement are improved by the prepayments of the loans, the agency has affirmed the ratings on Classes A through C and Class X1 TBIs and assigned a Stable Outlook. Currently, the transaction is secured by five loans backed by 14 properties as well as prepaid principals currently held at the trust account. Rating Outlooks have been published for all newly issued Asia Pacific Structured Finance tranches since June 2008, and concurrently with rating actions for tranches issued prior to June 2008. Unlike a Rating Watch which notifies investors that there is a reasonable probability of a rating change in the short term as a result of a specific event, rating outlooks indicate the likely direction of any rating change over a one- to two-year period. NISSIN SERVICER: Fitch Downgrades Servicer Rating to 'CSS3-' ------------------------------------------------------------ Fitch Ratings has downgraded Nissin Servicer Co., Ltd.'s asset- backed special servicer rating to 'ABSS3(JPN)' from 'ABSS3+(JPN)' and its commercial mortgage special servicer rating to 'CSS3- (JPN)' from 'CSS3+(JPN)'. The ratings have been placed on Rating Watch Negative. The rating actions are based on the continued financial difficulties faced by Nissin and its parent, NIS Group Co., Ltd., in part due to the current operating environment. Fitch does not publicly rate the credit and financial strength of NISG. However, a company's financial condition is an important component of Fitch's servicer rating analysis. Fitch recently performed an annual review of Nissin, and confirms that the servicer maintains its servicing capability at the level equivalent to the assigned ratings. The agency also notes that the servicer retains the strength of its experienced and stable management and continues its efforts to improve its servicing efficiency, including the enhancement of its internal control. Nissin is a consolidated subsidiary of NISG, and is listed on the Mothers section of the Tokyo Stock Exchange (NISG recently announced its intention to sell a portion of its stock holdings in Nissin). Established in July 2001, Nissin has been handling both unsecured and secured loan receivables with a license, obtained in October 2001, from the Minister of Justice. As at end-March 2008, Nissin serviced over 44,000 secured and unsecured loans with the unpaid principal balance of JPY1,057 billion. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Banks Deny Capital Cut ------------------------------------------- Leading shareholders of Hynix Semiconductor Inc. denied rumor that the company's capital could be reduced, Reuters reports. Controlling shareholders of Hynix, including Korea Exchange Bank (KEB) and Korea Development Bank, Reuters notes, are discussing an KRW800 billion funding for the firm. "We never discussed reducing capital and there's no need to" said the shareholders' committee in a statement provided by KEB as cited by Reuters. However, Reuters says analysts are concerned the funding would cover only a few more quarters for loss-making Hynix and it would eventually need more funds in a prolonged industry downturn. According to the report, UBS said Hynix could require close to KRW2 trillion to see it through the downturn. About Hynix Semiconductor Hynix Semiconductor Inc. (HSI) of Icheon, Korea -- http://www.hynix.com/-- is a memory semiconductor supplier offering Dynamic Random Access Memory chips ("DRAMs") and Flash memory chips to a wide range of established international customers. The company's shares are traded on the Korea Stock Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. * * * As reported by Troubled Company Reporter-Asia Pacific on Nov. 3, 2008, Standard & Poor's Ratings Services revised to negative from stable the outlook on its long-term corporate credit rating on Korea-based Hynix Semiconductor Inc., reflecting the current challenging market situation and increasing uncertainty in the memory semiconductor market. At the same time, S&P affirmed its 'BB-' long-term corporate credit rating and long-term senior unsecured debt ratings on the company. On November 5, 2008, Moody's Investors Service downgraded to Ba3 from Ba2 Hynix Semiconductor, Inc.'s corporate family rating and senior unsecured bond rating. The outlook for the ratings remains negative. HYUNDAI MOTOR: Reassigns 221 Jobless Workers -------------------------------------------- Hyundai Motor Company's management and the union has agreed to reassign 221 laborers to other factories after the closure of Equus production, english.chosun.com reports. The move, english.chosun.com relates, ended Hyundai's reassignment of all 498 laborers to other factories after losing their jobs due to Equus production closure. Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/-- has been selling cars in the U.S. since 1986, but it only started selling its heavy trucks stateside in 1998. Hyundai produces 14 models of cars, SUVs, and minivans, as well as trucks, buses, and other commercial vehicles. The company reestablished itself as South Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors (since reduced to about 43%). Hyundai's models for the North American market include the Accent and Sonata; models sold elsewhere include the GRD and Equus. The company also manufactures machine tools for factory automation and material- handling equipment. The Troubled Company Reporter-Asia Pacific reported that the Hyundai Automotive Group is facing its deepest crisis since chairman Chung Mong-koo took over in 1999, with problems like the steep drop of the United States dollar, high oil prices and union demands aggravated by a sweeping criminal investigation regarding the carmaker's alleged creation of slush funds that were used by at least two lobbyists to bribe government officials for business favors, including having KRW55 billion of Hyundai's bad debts written off. Chairman Chung was indicted early in May 2006 for fraud charges. Some of the group's official business has been on hold since the probe on the slush fund started and several top executives were summoned for questioning. On Feb. 5, 2007, a South Korean court handed down the sentence to Mr. Chung for illegally raising US$110 million in slush funds and bribing government officials. Mr. Chung was released on bond and continues to run the auto conglomerate. In May 2008, Yonhap News reported that a group of the company's shareholders filed a civil case against Mr. Chung to claim damages for heavy losses allegedly suffered through his mismanagement and other corporate shenanigans. According to the report, the shareholders, led by a civic group called Solidarity for Economic Reform, filed the lawsuit with the Seoul Central District Court, asking Mr. Chung to pay KRW563 billion (US$537 million) in damages to Hyundai Motor. The lawsuit came a day after prosecutors again demanded a six- year jail term for Mr. Chung for embezzlement and breach of trust, Yonhap said. * KOREA: 15 Insurance Firms' Solvency Ratios Drop ------------------------------------------------- The solvency margin ratios of 15 insurance companies have dropped below the level recommended by the nation's financial watchdog, Jeong Hyeon-ji of the Korean Herald reports citing industry sources. According to the report, the Financial Supervisory Service has found 15 insurance companies with solvency ratios lower than 150 percent. Nine of these insurance companies are life insurers while six are general insurance companies, including: -- Netherlands-based ING Life -- Hana HSBC Life -- KB Life -- AIG Life -- AIG General Insurance -- Kyobo AXA General Insurance -- Hyundai Hi Car Direct Insurance Co. Ltd. The report relates insurance companies operating in Korea are advised to maintain their solvency ratios at 150 percent or higher. Those companies with ratios lower than 150 percent are recommended to reinforce capital by the financial regulator, while the watchdog orders immediate corrections to companies with solvency ratios lower than the 100-percent level. Solvency margin ratios, the Korean Herald notes, indicate how readily insurance firms can pay insurance benefits to their subscribers and is considered to represent insurance companies' capital adequacy status in general. ============= L E B A N O N ============= * Moody's Changes Outlook on 'B3' Sovereign Ratings to Positive --------------------------------------------------------------- Moody's Investors Service has changed the outlook on Lebanon's sovereign ratings to positive from stable. These ratings are the country's B3 local and foreign currency government bond ratings, the B3 country ceiling for foreign currency bank deposits, and the B2 country ceiling for foreign currency bonds. "The change in outlook was motivated by the proven resilience of the public finances to shocks, which have been severe in recent years. The improvement in Lebanon's political and economic environments since the signature of the Doha Agreement in May are also reassuring," explains Tristan Cooper, a Vice President-Senior Analyst in Moody's Sovereigns Group. Under the Doha Agreement, Lebanon's hostile political factions agreed to: (i) elect a new president; (ii) form a national unity government; and (iii) pass a new electoral law in advance of the 2009 parliamentary elections. All three actions have been achieved: a consensus president was appointed in late May (the presidency had been vacant since November 2007); a new government that includes Hezbollah and representatives of other opposition parties was formed in July; and a revised electoral law was approved by parliament in September. These actions appear to have assuaged Lebanon's volatile political environment, which was nearing civil war in May. "Moody's recognizes that Lebanon's calmer political environment has allowed the country's economy to regain momentum but also notes that the public finances would likely be durable should the improvement falter, as shown during previous episodes of political turmoil," says Mr. Cooper. This summer was Lebanon's best in terms of tourism inflows since 2004. The IMF is projecting that the Lebanese economy will grow by 6% this year and the country's very large public debt overhang has continued to ease. Furthermore, Moody's notes that Lebanon is one of the few countries to have so far benefited from the global financial turmoil, as members of the large Lebanese diaspora have moved funds into Lebanon's banks, viewing them as relatively safe havens. Due to strict regulation, Lebanese banks have not been exposed to toxic sub-prime assets and did not hold significant assets with failed Western banks. Thus, largely due to these deposit inflows, the central bank's foreign currency reserves jumped by 57% over the first nine months of this year. At end- September, they amounted to US$15.3 billion or 60% of 2007 GDP. Lebanon's commercial banks also retain a high level of foreign currency liquidity. Moody's notes the banking system therefore remains willing and able to roll over and buy new government paper in both local and foreign currency. Despite these improvements, Moody's points out that Lebanon still has substantial credit risks. The political situation is fragile and tensions could well resurface before the parliamentary elections next May. There is also the looming threat of renewed conflict between Israel and Hezbollah. A return to serious political turmoil would quickly set back the economy and could lead to a withdrawal of bank deposits, although these have been highly resistant to political shocks in the past, as have the government's poor finances. Lebanon's economy is also likely to be negatively affected by the global economic downturn, as external demand falls and remittances and inward investment potentially suffer. The level of remittances from Lebanese workers in the Gulf are already reported to be falling. Nevertheless, Moody's believes that these downside risks are already well captured by Lebanon's low ratings. Moody's would upgrade Lebanon's sovereign ratings if the current relative political calm can be sustained through the electoral cycle, some much-needed economic reforms are passed and the public debt burden continues to ease. Lebanon has a GDP per capita in purchasing power terms of around US$12,000, mid-range among countries rated by Moody's, although the absolute size of the economy is relatively small. The last rating action took place on March 25, 2008, when Moody's changed the outlook on Lebanon's ratings to stable from negative owing to the resilience of Lebanon's public finances in the face of numerous political shocks. * Moody's Changes 'B3' Rating Outlook on Four Lebanese Banks ------------------------------------------------------------ Moody's Investors Service has changed the outlook on the B3 long- term foreign currency deposit rating of the four Lebanese banks, BLOM Bank, Byblos Bank, Bank Audi, and Bank of Beirut, to positive from stable. In addition, the outlook on Byblos Bank's B2 foreign currency senior and subordinated bond ratings has changed to positive from stable. This rating action has been prompted by the recent change in outlook to positive from stable of Lebanon's B3 foreign currency deposit ceiling and the B2 foreign currency bonds ceiling. The rating agency notes that the change in outlook was motivated by the proven resilience of the public finances to shocks, which have been severe in recent years. Moody's also finds reassuring the improvement in Lebanon's political and economic environments since the signature of the Doha Agreement in May 2008. "The affected ratings were, and remain constrained by the country ceilings, while the banks' respective bank financial strength ratings, global local currency deposit ratings, local-and foreign- currency short-term ratings and national scale ratings are not affected by this rating action," says Stathis Kyriakides, a Limassol-based Moody's Assistant Vice President - Analyst, and lead analyst for Lebanese banks. Moody's previous rating action on the four Lebanese banks was on March 27, 2008, when it changed the outlook of Lebanese banks' long-term foreign-currency deposit rating to stable from negative. All four Moody's rated banks are headquartered in Beirut: - Bank Audi had total assets of LBP28.1 trillion (US$18.6 billion) at the end of June 2008. - BLOM Bank had total assets of LBP26.6 trillion (US$17.6 billion) at the end of June 2008. - Byblos Bank had total assets of LBP15.4 trillion (US$10.2 billion) at the end of June 2008. - Bank of Beirut had total assets of LBP8.4 trillion (US$5.6 billion) at the end of June 2008. =============== M O N G O L I A =============== KHAN BANK: Fitch Affirms Long-Term Issuer Default Ratings at 'B+' ----------------------------------------------------------------- Fitch Ratings has affirmed Mongolia's Khan Bank and XacBank LLC's Long-term foreign and local currency Issuer Default Ratings at 'B+' and revised the Outlooks to Negative from Stable. These rating actions follow Fitch's revision of the Outlook on the Mongolian Sovereign's 'B+' IDRs to Negative from Stable, noting that Khan Bank and XacBank's IDRs are capped by that on the Sovereign. ==================== N E W Z E A L A N D ==================== ARA MAHI: Court to Hear Wind-Up Petition on January 28 ------------------------------------------------------ A petition to have Ara Mahi Ltd.'s operations wound up will be heard before the High Court at Tauranga on January 28, 2009, at 10:45 a.m. The Commissioner of Inland Revenue filed the petition against the company on October 15, 2008. The CIR's solicitor is: Rachel L. Scott Inland Revenue Department Legal and Technical Services 1 Bryce Street PO Box 432, Hamilton Telephone:(07) 959 0416 Facsimile:(07) 959 7614 BOSTON FINANCE: 21c in the Dollar Payout, Below Forecasts --------------------------------------------------------- Fiona Robertson at The National Business Review reported that Boston Finance has repaid investors another NZ$2.9 million of their capital as part of a moratorium. Boston Finance, the Business Review recounted, won investors' vote for a moratorium back in March, based on forecasts that it would have repaid 77c in the dollar of investors' NZ$38.5 million by the end of this year. However, the report related, last week's payout took their total returns to just 21c in the dollar, well behind the forecasts. The moratorium was meant to last only 20 months and return full capital plus 9% interest, the Business Review noted. According to the report, insolvency experts KordaMentha, who are supervising the moratorium, wrote to investors in September noting that the moratorium might not return all investors' capital if conditions deteriorated further, though it still expected a full return. CUT IT: Court Hears Wind-Up Petition ------------------------------------ On December 8, 2008, the High Court at Rotorua heard a petition to have Cut It Out (Taupo) Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on September 19, 2008. EASTERN HI FI: Raising NZ$3 Million to Retire Debts --------------------------------------------------- Eastern Hi Fi Group Limited is raising approximately NZ$3 million through rights issue to pay off debts. The new issue will be two shares for every one share currently held at a value of 15 cents each, the company said in a regulatory filing. Eastern Hi Fi said it has received a convertible interest free loan from its second largest shareholder James Ian Urquhart in the sum of NZ$1 million, which it is proposed will convert to equity in the new issue. According to Eastern Hi Fi, the loan would ordinarily require shareholder approval as a related party transaction and because of its size relative to the company's current market capitalisation, however the company said NZX has granted a waiver for this requirement. Based in New Zealand, Eastern Hi Fi Group Limited - http://www.easternhifigroup.com-- is engaged in importation, wholesaling and retailing of audio visual equipment. It operates retail outlets in New Zealand, in Greater Auckland area and in Tauranga, Napier and Wellington. The company operates through its subsidiaries Pacific Audio Limited, Eastern Hi Fi Ltd, Avalon Pacific Marketing Ltd and Avalon Audio Corporation Limited. Avalon Pacific Marketing Ltd has sole New Zealand distribution rights for a select portfolio of brands. This portfolio includes KEF, Polk Audio, Audioquest, Dynaudio, Goldring and Hitachi. These brands are marketed throughout the country. Approximately 60% of the product imported by Avalon Pacific Marketing Ltd is sold at retail by the Company. Eastern HiFi Ltd operates six stores with outlets in Auckland (North Shore, Mt Eden, Newmarket and Howick), Tauranga and Napier. Eastern HiFi Ltd markets brands, such as Denon, Loewe, Bose, Rotel, Perreaux and Image. * * * In its unaudited financial report for the six months ended June 30, 2008, Eastern Hi Fi Group Limited reported a net loss of NZ$569,091 compared to a NZ$174,014 net loss in the same period last year. For the year ended December 30, 2007, Eastern Hi Fi reported a net loss of NZ$971,283. ELLIS LOGGING: Court Hears Wind-Up Petition ------------------------------------------- On December 8, 2008, the High Court at Rotorua heard a petition to have Ellis Logging Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on September 29, 2008. H. M. BURT: Court Hears Wind-Up Petition ---------------------------------------- On December 8, 2008, the High Court at Rotorua heard a petition to have H. M. Burt Joinery Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on July 25, 2008. HYBRID HOMES: Court Hears Wind-Up Petition ------------------------------------------ On December 11, 2008, the High Court at Napier heard a petition to have Hybrid Homes Ltd.'s operations wound up. Intoit Limited filed the petition against the company on Aug. 27, 2008. HYGIENE INTENSIVE: Court Hears Wind-Up Petition ----------------------------------------------- On November 28, 2008, the High Court at Auckland heard a petition to have Hygiene Intensive Treatments Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on September 17, 2008. IGIENIX LTD: Court Hears Wind-Up Petition ----------------------------------------- On December 8, 2008, the High Court at Rotorua heard a petition to have Igienix Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on October 8, 2008. KENWYN TRUST: Court to Hear Wind-Up Petition on January 30 ---------------------------------------------------------- A petition to have Kenwyn Trust Ltd.'s operations wound up will be heard before the High Court at Auckland on January 30, 2009, at 10:45 a.m. Harrison Grierson Consultants Limited filed the petition against the company on August 28, 2008. Harrison Grierson's solicitor is: R. G. Hay Morgan Coakle, Solicitors Gosling Chapman Tower 1 51-53 Shortland Street, Level 12 Auckland KIWI PROPERTY: Creditors' Proofs of Debt Due on December 19 ----------------------------------------------------------- The creditors of Kiwi Property Investments Group 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. 17, 2008. The company's liquidators are: Peri Micaela Finnigan Victoria Toon McDonald Vague PO Box 6092, Wellesley Street Auckland 1141 Telephone:(09) 303 0506 Facsimile:(09) 303 0508 Web site: http://www.mvp.co.nz PEGASUS PROPERTY: Court Hears Wind-Up Petition ---------------------------------------------- On December 1, 2008, the High Court at Christchurch heard a petition to have Pegasus Property Ltd.'s operations wound up. Mont Baker Limited filed the petition against the company on October 16, 2008. Mont Baker's solicitor is: N. S. Elsmore Anderson Lloyd, Lawyers Clarendon Tower, Level 10 corner of Oxford Terrace and Worcester Street Christchurch 8011 RANGITOTO HOLDINGS: Court Hears Wind-Up Petition ------------------------------------------------ On November 28, 2008, the High Court at Auckland heard a petition to have Rangitoto Holdings Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on September 17, 2008. SYDNEY PRODUCTIONS (NO. 3): Court Hears Wind-Up Petition -------------------------------------------------------- On December 5, 2008, the High Court at Auckland heard a petition to have Sydney Productions (No. 3) Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on July 28, 2008. SYDNEY PRODUCTIONS (NO. 2): Court Hears Wind-Up Petition -------------------------------------------------------- On December 5, 2008, the High Court at Auckland heard a petition to have Sydney Productions (No. 2) Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on July 28, 2008. TERRAFIRMA LANDSCAPING: Court Hears Wind-Up Petition ---------------------------------------------------- On November 28, 2008, the High Court at Auckland heard a petition to have Terrafirma Landscaping Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on September 17, 2008. THE HOUSE: Court Hears Wind-Up Petition --------------------------------------- On December 8, 2008, the High Court at Rotorua heard a petition to have The House Of Rhythm And Soul Ltd.'s operations wound up. The Commissioner of Inland Revenue filed the petition against the company on September 19, 2008. * NEW ZEALAND: Total Retail Sales Drop 1.3% in October ------------------------------------------------------ Seasonally adjusted total retail sales fell 1.3 percent (NZ$69 million) in October 2008, Statistics New Zealand said. This drop was dominated by the vehicle-related industries, particularly a 14.5 percent (NZ$90 million) fall in motor vehicle retailing. The trend in motor vehicle retailing sales has fallen 19.6 percent since September 2007 and is at its lowest level since September 2001. Automotive fuel retailing was also down (2.2 percent or $14 million), consistent with lower petrol and diesel prices in October. Core retailing, which excludes the four vehicle-related industries, rose 0.8 percent (NZ$34 million) in October 2008, with 13 of the 20 core industries having increased sales compared with September 2008. These increases were led by appliance retailing (up 7.6 percent or NZ$15 million), accommodation (up 5.3 percent or NZ$12 million), and clothing and softgoods retailing (up 5.5 percent or NZ$11 million). The largest offsetter to the rise in core retailing was supermarket and grocery stores, with a 1.2 percent (NZ$14 million) fall. Monthly movements in the total retail sales trend have been close to flat throughout 2008 but have been trending downwards, with October showing a 0.9 percent fall from the start of the year. The core retail sales trend has been rising continually since September 1995, but since mid-2007 has slowed to an average monthly growth of just 0.1 percent. In October 2008, sales fell overall in the North Island and were flat in the South Island. ================= S I N G A P O R E ================= CHARTERED SEMICONDUCTOR: Sees Wider Fourth Quarter Net Loss ----------------------------------------------------------- Chartered Semiconductor Manufacturing Ltd expects its fourth quarter 2008 net loss to widen to $80 million from an earlier expectation of $57 million. The company incurred a net loss of $24.4 million in the third quarter 2008. The company also expects its revenue for the fourth quarter 2008 to lower to $348 million from previous estimate of $368 million. In the third quarter 2008, the company recorded $463.7 million in revenues. Commenting on the revised earnings guidance, George Thomas, senior vice president & CFO of Chartered, said: "As the quarter is progressing, we are seeing some of our customers postponing their deliveries due to, what we believe are, weaker market conditions and their intent to keep inventories low. We are therefore revising our outlook for the fourth quarter. Due to the uncertain business environment that continues to cloud our business visibility, we are aggressively identifying additional areas for cost reduction in addition to those that are being implemented currently," Chartered plans to release fourth quarter 2008 results on January 30, 2009, Singapore time, before the Singapore market opens. About Chartered Singapore-based Chartered Semiconductor Manufacturing Ltd. (Nasdaq: CHRT, SGX-ST: CHARTERED) -- http://www.charteredsemi.com/ -- is a semiconductor foundry, which provides wafer fabrication services and technologies to semiconductor suppliers and systems companies. The Company focuses on providing foundry services to customers that serve technologically advanced applications for the communication, computer and consumer sectors. As of December 31, 2007, Chartered owns, or have an interest in, five fabrication facilities, Fabs 2, 3, 5, 6 and 7, all of which are located in Singapore. Fab 7 is its only 300-mm facility. During the year ended December 31, 2007, the Company manufactured semiconductors for over 150 different active customers. During 2007, its top five customers collectively accounted for approximately 61% of the Company's total net revenue. In March 2008, the Company completed the acquisition of Hitachi Semiconductor Singapore Pte Ltd, from Hitachi, Ltd and Hitachi Asia Ltd. * * * As reported in the Troubled Company Reporter-Asia Pacific on Aug. 26, 2008, Standard & Poor's Ratings Services lowered the corporate credit rating on Chartered Semiconductor Manufacturing Ltd to 'BB+' from 'BBB-'. The outlook is negative. At the same time, S&P lowered the issue ratings on all Chartered's senior unsecured notes to 'BB+' from 'BBB-'. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 18, 2008, Fitch Ratings downgraded Chartered Semiconductor Manufacturing Ltd's Long-term foreign currency Issuer Default rating and its outstanding senior unsecured debt to 'BB+' from 'BBB-'. The Outlook is Stable. FONTERRA BRANDS: Creditors' Proofs of Debt Due on January 5 ----------------------------------------------------------- The creditors of Fonterra Brands (Trading Singapore) Pte Ltd are required to file their proofs of debt by January 5, 2009, to be included in the company's dividend distribution. The company's liquidator is: Chee Yoh Chuang Lim Lee Meng c/o 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 HOCK SOON: Court Enters Wind-Up Order ------------------------------------ On November 28, 2008, the High Court of Singapore entered an order to have Hock Soon & Company (Pte) Limited's operations wound up. Corporate Compliance Services Pte Ltd filed the petition against the company. The company's liquidator is: Lok Lai Cheng 1 Scotts Road #21-07/08 Shaw Centre Singapore 228208 MHC HOLDINGS: Creditors' Proofs of Debt Due on January 16 --------------------------------------------------------- The creditors of MHC Holdings Pte Ltd are required to file their proofs of debt by January 16, 2009, to be included in the company's dividend distribution. The company's liquidator is: Heng Lee Seng 15 Hoe Chiang Road #12-02 Tower Fifteen Singapore 089316 SLENDER SHAPES: Court Enters Wind-Up Order ------------------------------------------ On November 28, 2008, the High Court of Singapore entered an order to have Slender Shapes Singapore Pte. Ltd.'s operations wound up. Lowe Richard Christopher filed the petition against the company. The company's liquidator is: The Official Receiver 45 Maxwell Road #06-11 The URA Centre (East Wing) Singapore 069118 TMS SHIP: Court Enters Wind-Up Order ------------------------------------ On November 28, 2008, the High Court of Singapore entered an order to have TMS Ship Repairs Pte Ltd's operations wound up. Kwong Soon Engineering Company Pte Ltd filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 =============== T H A I L A N D =============== TRUE CORP: S&P Cuts Corporate Credit Rating to 'B'; Outlook Neg. ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit ratings on True Corp. Public Co. Ltd. and its cellular subsidiary True Move Co. Ltd. to 'B' from 'B+ '. The outlooks on the ratings are negative. At the same time, S&P lowered the issue rating on True Move's senior unsecured notes to 'B-' from 'B'. "The rating actions reflect a weakening of the group's credit profile due to lower-than-expected earnings visibility as a result of further profitability pressure on True Move. In addition, True Move may face difficulties meeting its near-term financial covenants, given the challenging operating environment," said S&P's credit analyst Yasmin Wirjawan. The lower issue rating reflects Standard & Poor's expectation that True Move's ratio of priority debt to total assets will remain between 15% and 30% on a sustainable basis. As at Sept. 30, 2008, the group is in compliance with its covenants as these ratios stood at 3.7x for True Corp. and 4.2x for True Move, based on EBITDA for the past four quarters. There is no cross default among the True group companies. From fiscal 2008 onwards, however, True Corp.'s stand-alone ratio of senior debt to EBITDA cannot reach more than 4.0x and True Move's ratio of net debt to EBITDA cannot reach more than 4.0x based on the group's existing financial covenants. There is a reasonable possibility, that the group's relevant creditors may consider a waiver, extension, or novation of such requirements. The rating on True Corp. reflects the group's highly leveraged financial risk profile, intense competition in Thailand's wireless market, and regulatory uncertainties. These risks are partly mitigated by the company's leading position in the country's fixed-line, broadband, and pay-TV markets, its established presence as the third-largest player in the domestic wireless market, and its diversified services. As at Sept. 30, 2008, True Corp.'s consolidated credit measures had deteriorated compared with the first quarter of 2008. Its ratio of total debt to EBITDA stood at 4.6x (annualized) from 4.0x due to the pressure on profitability margins. The turnaround in the profitability of True Corp.'s wireless segment has been hampered by intense competition, which is likely to continue as revenue growth has subsided, lower average revenue per user, and a penetration rate of about 90%. The rating on True Move reflects the company's high leverage position, intense competition, and regulatory uncertainties. These risks are partially offset by its strategic importance to True Corp. and its presence as the third-largest operator in the Thai cellular market. True Move's consolidated credit measures have deteriorated due to strong competition, as revenue growth has subsided and the penetration rate has reached about 90%. The pressure on profitability margins should persist and could weaken True Move's cash flow position further, as its ratio of debt to EBITDA reached almost 6x (annualized) as at Sept. 30, 2008. ============= V I E T N A M ============= VIETNAM: S&P Keeps 'BB/B' Sovereign Credit Ratings; Outlook Neg. ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB/B' foreign currency and 'BB+/B' local currency sovereign credit ratings on the Socialist Republic of Vietnam. The outlook is negative. The ratings on Vietnam reflect the country's low-income economy and developing financial system. These weaknesses increase the vulnerability of the economy to severe shocks that could significantly increase the public financial burden. Recent developments highlight the risks associated with this vulnerability in the economy. Hectic investment activity of recent years, fueled in part by strong credit growth, appears to have pushed the economy to the limits. "The banking sector now faces a global economic slowdown with its balance sheet weakened by excessive credit growth," Mr. Tan said. If the economy suffers a prolonged downturn, financial pressure on the banking sector will mount to exacerbate asset quality deterioration. The government may have to support the banks to preserve financial stability. This would damage the sovereign balance sheet. Despite the near-term risks, good prospects for sustained economic growth provide fundamental support for sovereign creditworthiness in Vietnam. The government's ongoing structural reforms have led to a resurgence of investor confidence. S&P expects investment from both public and private sector investors to sustain economic growth at an average 7% annually in the medium term, Mr. Tan said. In recent years, foreign investment in Vietnam has also lifted the level of foreign reserves held by the central bank. S&P forecasts reserves at approximately US$21 billion by the end of 2008. Vietnam's positive net external credit position should help the economy withstand a large adverse economic shock. The negative outlook on the ratings reflects the risks to financial stability as banks face near-term asset quality deterioration with weakened balance sheets. The credit ratings on the government could be lowered if the probability that the situation would develop into a widespread economic and financial system distress increases. The likelihood of the sovereign rating remaining at the current level could rise on indications that the economy will return to a sustainable growth path and that the financial fallout of economic rebalancing will be confined to a small number of systemically unimportant institutions. This would allow the outlook to revert to stable. =============== X X X X X X X X =============== * Credit Unions to Extend US$10 Billion in Loans to Detroit 3 ------------------------------------------------------------- Sharon Terlep at The Wall Street Journal reports that a group of 1,300 credit unions have pledged to extend about $10 billion in auto loans. According to WSJ, the credit unions are aiming to win new borrowers while providing General Motors Corp., Ford Motor Co., and Chrysler LLC financial assistance. Tom Henderson at Crain's Detroit Business relates that GM and the Michigan Credit Union League said on Dec. 10 that a consortium of credit unions in Michigan, Ohio, Indiana, and Illinois have agreed to provide up to US$10 billion to finance the sale of new GM vehicles through June 2009, in exchange for supplier discounts from GM to more than 12 million credit union members in the Midwest. According to a statement posted at Lovemycreditunion.org, credit union members will be able to get an additional US$250 bonus cash between Dec. 10, 2008 and Jan. 5, 2009, on their eligible new GM vehicle purchase. The GM price discount program includes these brands: Buick, Cadillac, Hummer, Saab, Chevrolet, GMC, Saturn, and Pontiac. The program runs from Dec. 8, 2008, through June 30, 2009. WSJ relates that the credit union group said that it's working with Ford Motor Co. and Chrysler LLC on a similar arrangement. ********* 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 ***