/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090105.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, January 5, 2009, Vol. 12, No. 2 Headlines A N G O L A TAAG: Blames US$5 Million Monthly Losses on EU Ban A U S T R A L I A AGRIBUSINESS INSURANCE ET AL: Members Opt to Liquidate Businesses AUGUSTE DEVELOPMENTS: Members Receive Wind-Up Report AUSTRALIAN ZIRCON: Gets Debt Repayment Extension BAY VIEW: Placed Under Voluntary Liquidation CRANE TRUCKS: Placed Under Voluntary Liquidation COASTLINE PLASTERING: Declares Dividend DIESEL DOCTOR: Declares First and Final Dividend EXAIRTEC CORPORATION: Commences Liquidation Proceedings FMRA PTY: Inability to Pay Debts Prompts Wind-Up LAKE MACLEOD: Members Receive Wind-Up Report MACARTHURCOOK LTD: Unit Sells Two Shopping Centers to Pay Debts MCCURRY HOLDINGS: Commences Liquidation Proceedings NORTHWEST PROPERTY: Declares First and Final Dividend RADIOCOM AUST: Members Receive Wind-Up Report RIVER HOLIDAYS: Members Hear Wind-Up Report THE YO: Members and Creditors Hear Wind-Up Report WEST AUSTRALIAN: Placed Under Voluntary Liquidation WESTRALIA PROPERTY: Members Receive Wind-Up Report C H I N A LAS VEGAS SANDS: Bank Loan Sells at Substantial Discount SANLU GROUP: Inks Asset Rental Agreement With Beijing Sanyuan UBS AG: Sells 3.4 Billion Shares in Bank of China I N D I A CHEROKEE INT'L: Completes US$62.3MM Merger w/ Lineage Power's Unit CHEROKEE INTERNATIONAL: Pays US$46.6MM of 5.25% Senior Notes Debt CHERUKATTU: CRISIL Rates Rs.50.00MM Packing Credit Limits at 'P4' CITIGROUP INC: Completes US$512 Mil. Sale of CGSL to TCS EPITOME COMPONENTS: CRISIL Rates Rs.43.0MM Cash Credit at 'BB+' GENERAL MOTORS: Gets US$4 Billion in Low-Interest Loans From Gov't M. S. DYEING: CRISIL Rates Rs.70.84 Mil. Long Term Loan at 'B' VIMAL DAIRY: CRISIL Rates Rs 120.0MM Cash Credit at 'B+' WELSET PLAST: CRISIL Puts 'BB' Rating on Various Bank Facilities J A P A N NATIXIS SA: To Cut Workforce in Japan by 85% N E W Z E A L A N D NATHANS FINANCE: Receivers to Pursue Identified Claims * NEW ZEALAND: Electronic Card Spending Fell 2.8% in November 2008 O M A N * OMAN: Sees US$2.1 Bil. Budget Deficit on Low Oil Prices - - - - - =========== A N G O L A =========== TAAG: Blames US$5 Million Monthly Losses on EU Ban -------------------------------------------------- TAAG spokesman Rui Carreira said the airline is losing US$5 million a month because the European Union banned it from flying in its airspace, Bloomberg News reported citing the Angola Press Agency. According to Bloomberg News, the Luanda-based news agency said on its Web site the EU banned TAAG in July 2007, citing safety concerns. The Angolan government has given the airline one year to regain its certification to fly to Europe, Angola Press Agency said in the report cited by Bloomberg News. TAAG is Angola's state-owned airline. ================= A U S T R A L I A ================= AGRIBUSINESS INSURANCE ET AL: Members Opt to Liquidate Businesses ----------------------------------------------------------------- On November 21, 2008, the members resolve to voluntarily liquidate the businesses of: -- Agribusiness Insurance Brokers Pty Ltd; -- Costilla Pty Ltd; -- Elders Distribution Company Pty Ltd; and -- V.P. Services Pty Ltd. The company's liquidators are: Sam Davies Thea Eszenyi McGrathNicol 99 Gawler Place, Level 13 Adelaide SA 5000 Telephone +61 8 8468 3700 Website: http://www.mcgrathnicol.com AUGUSTE DEVELOPMENTS: Members Receive Wind-Up Report ---------------------------------------------------- The members of Auguste Developments Pty Ltd met on Nov. 17, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: K. A. Strickland WA Insolvency Solutions Pty Ltd 40 St Georges Terrace, Level 12 Perth WA 6000 AUSTRALIAN ZIRCON: Gets Debt Repayment Extension ------------------------------------------------ Australian Zircon NL has received extensions on its debt repayment from the Commonwealth Bank (CBA), The Australian reports. The Australian relates that CBA agreed to extend the repayment date of the company's AU$5 million temporary overdraft facility to June 30, 2009, from December 30, 2008. Under the agreement with the bank, the report says, CBA will have priority over shareholders and other creditors. Australian Zircon, the Australian notes, will also begin repaying AU$47 million advanced by CBA from September 30, and make earlier repayments from June 30 if the company's cash flow is higher than that set out in the term sheet agreed with the bank. The report says the deal with CBA comes as the company attempts to survive by agreeing to a AU$40 million debt for equity swap with Austrian commodity trading giant DCM DECOmetal GmbH, signed in November. The company's agreement with DCM still is conditional on government and shareholder approval, the report adds. About Australian Zircon Australian Zircon NL (ASX:AZC) -- http://www.auzircon.com.au/ -- is engaged in construction and commissioning of its Mindarie Zircon mine in the South Australian sector of the Murray Basin. In addition, the company has continued exploration for zircon and titanium minerals on its tenements in South Australia. The company has exploration regions in both Western Australia and New South Wales. * * * Australian Zircon NL reported three consecutive net losses of AU$15.83 million, AU$2.61 million and AU$1.96 million for the years ended June 30, 2008, 2007 and 2006, respectively. BAY VIEW: Placed Under Voluntary Liquidation -------------------------------------------- The members of Bay View Investments Pty Ltd met on September 28, 2008, and resolved to voluntarily liquidate the company's business. G.A. Lopez and E.R. Verge are the company's liquidators. CRANE TRUCKS: Placed Under Voluntary Liquidation ------------------------------------------------ During a general meeting held on October 8, 2008, the members of Crane Trucks Tasmania Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Barry Hamilton B K Hamilton & Associates Chartered Accountant Macquarie Street, Level 2/171 Hobart Tas 7000 COASTLINE PLASTERING: Declares Dividend --------------------------------------- Coastline Plastering Services Pty Ltd, which is in liquidation, declared dividend on November 25, 2008. Only creditors who were able to file their proofs of debt by Nov. 11, 2008, were included in the company's dividend distribution. DIESEL DOCTOR: Declares First and Final Dividend ------------------------------------------------ Diesel Doctor (Tas) Pty Ltd, which is in liquidation, declared the first and final ordinary dividend on November 24, 2008. Only creditors who were able to file their proofs of debt by Nov. 7, 2008, were included in the company's dividend distribution. The company's liquidator is: Johnathan Murrell 105 Macquarie Street Hobart TAS 7000 Telephone:(03) 6223 2555 Facsimile:(03) 6223 2556 e-mail: info@pjc.com.au EXAIRTEC CORPORATION: Commences Liquidation Proceedings ------------------------------------------------------- During a general meeting held on October 1, 2008, the members of Exairtec Corporation (Asia) Pty Ltd resolved to voluntarily liquidate the company's business. The company's liquidator is: Sam Davies McGrathNicol 99 Gawler Place, Level 13 Adelaide SA 5000 Telephone: +61 8 846 3700 Website: http://www.mcgrathnicol.com FMRA PTY: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------ The members of FMRA Pty Ltd met on October 10, 2008, and resolved to voluntarily liquidate the company's business due to its inability to pay debts when it fall due. The company's liquidators are: Timothy James Clifton Mark Christopher Hall Chartered Accountants 26 Flinders Street, Level 10 Adelaide SA LAKE MACLEOD: Members Receive Wind-Up Report -------------------------------------------- The members of Lake Macleod Salt Company Pty Ltd met on Dec. 1, 2008, and received the liquidator's report on the company's wind- up proceedings and property disposal. MACARTHURCOOK LTD: Unit Sells Two Shopping Centers to Pay Debts --------------------------------------------------------------- MacarthurCook Funds Management Limited, an unlisted property fund managed by MacarthurCook Limited, may avoid losing its entire investment in the fund after the sale of its two shopping centers, The Australian reports. In September, the Australian relates, MacarthurCook Funds warned that investors in the MacarthurCook Retail Property Trust might lose the capital invested in the fund. According to the report, MacarthurCook's head of property, Russell Bullen, blamed contraction in asset value to the current state of the property market. The Australian notes that MacarthurCook Funds' shopping centers were valued at AU$77.9 million at the start of the last financial year, but that had fallen to AU$60.4 million by the end. As a result, the report relates, the trust's loan to value ratio (LVR) blew out to 94.5 per cent, from 69 per cent at the beginning of the 2008 financial year. MacarthurCook Retail, according industry sources cited by the report, also suffered from increased competition when new shopping centres popped up within their catchment areas. Mr. Bullen told the Australian that after discussions with its lender, Westpac Bank, it was decided to call for tenders to sell the shopping centres in Nunawading (Melbourne) and Kogarah (Sydney). Proceeds from the sale would be used to repay its debt to the bank. Mr. Bullen, the report says, would not disclose the offer price, except to reiterate the possibility that investors might not get their money back. However, the Australian notes, investors may avoid losing their entire investment after the sale of two shopping centers is finalized in coming weeks. Based in Melbourne, Australia, MacarthurCook Limited (ASX:MCK) -- http://www.macarthurcook.com.au-- is engaged in real estate investment management. The company is engaged in the investment management of direct property, real estate securities and mortgages. The company operates in Australia, Singapore and New Zealand and is an investment advisor to funds listed in the United States. Its subsidiaries include MacarthurCook Investment Managers Limited, Arc Funds Management Limited, MacarthurCook Fund Management Limited, MacarthurCook Investment Managers (Asia) Ltd, MacarthurCook Property Management Pte Ltd, MacarthurCook Property Investment Pte Ltd and MacarthurCook Real Estate Capital Limited. On February 1, 2008, the company acquired 33% interest in a New Zealand-based property funds management group Kinloch Funds Management Limited. MCCURRY HOLDINGS: Commences Liquidation Proceedings --------------------------------------------------- The members of Mccurry Holdings Pty Ltd met on September 19, 2008, and resolved to voluntarily liquidate the company's business. G.A. Lopez and E.R. Verge are the company's liquidators. NORTHWEST PROPERTY: Declares First and Final Dividend ----------------------------------------------------- Northwest Property Pty Ltd, which is in liquidation, declared the first and final dividend on November 26, 2008. Only creditors who were able to file their proofs of debt by Nov. 12, 2008, were included in the company's dividend distribution. The company's liquidator is: C. M. Williamson WA Insolvency Solutions Pty Ltd 40 St Georges Terrace, Level 12 Perth WA 6000 RADIOCOM AUST: Members Receive Wind-Up Report --------------------------------------------- The members of Radiocom Aust Pty Ltd met on Nov. 26, 2008, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Tarquin Koch Anthony Matthews & Associates Chartered Accountants 46 Fullarton Road Norwood SA 5067 Telephone:(08) 8363 9505 Facsimile:(08) 8363 9506 e-mail: info@matthewsassociates.com.au RIVER HOLIDAYS: Members Hear Wind-Up Report ------------------------------------------- The members of River Holidays (Holdings) Pty. Limited met on November 21, 2008, and heard the liquidator's report on the company's wind-up proceedings and property disposal. THE YO: Members and Creditors Hear Wind-Up Report ------------------------------------------------- The members and creditors of The Yo Bar Pty Ltd met on Nov. 21, 2008, and received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: M. O. Basedow Pitcher Partners 160 Greenhill Road Parkside SA 5063 Telephone:(08) 8179 2800 Facsimile:(08) 8179 2885 WEST AUSTRALIAN: Placed Under Voluntary Liquidation --------------------------------------------------- During a general meeting held on October 8, 2008, the members of West Australian Olive Company Pty Ltd resolved to voluntarily liquidate the company's business. David Macdonald Johnston is the company's liquidator. WESTRALIA PROPERTY: Members Receive Wind-Up Report -------------------------------------------------- The members of Westralia Property Group Pty Ltd met on Nov. 18, 2008, and received the liquidator's report on the company's wind- up proceedings and property disposal. Kim Wallman is the company's liquidator. ========= C H I N A ========= LAS VEGAS SANDS: Bank Loan Sells at Substantial Discount -------------------------------------------------------- Participations in a syndicated loan under which Las Vegas Sands is a borrower traded in the secondary market at 42.05 cents-on- the-dollar during the week ended December 26, 2008, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 3.64 percentage points from the previous week, the Journal relates. Las Vegas Sands pays interest at 175 basis points above LIBOR. The syndicated loan matures on May 1, 2014. The bank loan carries Moody's B2 rating and Standard & Poor's B+ rating. About Las Vegas Sands Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS) -- http://www.lasvegassands.com/-- owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo and convention center. The company also owns and operates the Sands Macao, the first Las Vegas-style casino in Macao, China. As of Sept. 30, 2008, the company has US$14.7 billion in total assets, and US$12.4 billion in total liabilities. Unrestricted cash balances as of September 30, stood at US$1.28 billion while restricted cash balances were US$239.1 million. Of the restricted cash balances, US$199.6 million is restricted for Macao-related construction and US$32.3 million is restricted for construction of Marina Bay Sands in Singapore. As of Sept. 30, total debt outstanding, including the current portion, was US$10.35 billion. * * * As reported by the Troubled company Reporter on November 14, 2008, Moody's Investors Service lowered the ratings of Las Vegas Sands, Corp. and its subsidiaries, including Venetian Casino Resort, LLC and Venetian Macao Limited. The ratings Moody's re also placed on review for possible further downgrade. The two-notch downgrade reflects Las Vegas Sands' considerable leverage, the continuation of significant negative trends in Las Vegas, and expectation that these trends will continue in the foreseeable future. The downgrade also considers recent visitation restrictions in Macao, China that will likely slow Las Vegas Sands' rate of growth in that market, at least until the Chinese government decides to relax these travel restrictions. Las Vegas Sands, Corp. ratings lowered and placed on review for possible downgrade: -- Corporate family rating to B2 from Ba3 -- Probability of default rating to B2 from Ba3 -- US$250 million 6.375% senior notes to B2 from Ba3 Venetian Casino Resort, LLC (and its co-issuer Las Vegas Sands, LLC) ratings lowered and placed on review for possible downgrade: -- US$1 billion revolver expiring 2012 to B2 from Ba3 -- US$3 billion term loan due 2014 to B2 from Ba3 -- US$600 million delay draw term loan due 2014 to B2 from Ba3 -- US$400 million delay draw term loan due 2013 to B2 from Ba3 Venetian Macao Limited ratings lowered and placed on review for possible downgrade: -- US$700 million revolver expiring 2011 to B2 from B1 -- US$1.8 billion term loan due 2013 to B2 from B1 -- US$100 million term loan due 2011 to B2 from B1 -- US$700 million delay draw term loan due 2012 to B2 from B1 SANLU GROUP: Inks Asset Rental Agreement With Beijing Sanyuan ------------------------------------------------------------- Jin Jing at Shanghai Daily reports that Beijing Sanyuan Foods Co has agreed to rent some assets from Sanlu Group Co. A subsidiary of Sanyuan, the Daily says, will be allowed to use manufacturing assets in six key plants of Sanlu to produce dairy products. According to the report, Shijiazhuang government spokesman said the move aims to prevent Sanlu's assets from devaluation as the company is undergoing bankruptcy proceedings. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 29, 2008, various reports said Sanlu Group Co was declared bankrupt by a Chinese court. According to People's Daily Online, Wang Jianguo, spokesman for the city government of Hebei provincial capital Shijiazhuang, said the Intermediate People's Court of Shijiazhuang City has accepted the petition made by the Heipingxi Road branch of Shijiazhuang City Commercial Bank - a creditor of Sanlu. Citing a spokesman, the Daily Online noted that as of Oct. 31, the group's total assets were worth CNY1.56 billion while its total debts were CNY1.76 billion. Sanlu, Daily Online said, stopped production on Sept. 12. As of Oct. 31, the group recalled more than 10,000 tonnes of baby formula products worth nearly CNY1 billion. Shanghai Daily reported that Fonterra, which has a 43 percent stake in Sanlu, said Sanlu will be managed by a court-appointed receiver to monitor the orderly sale of the company's assets and payment of creditors within six months. On September 25, 2008, the Troubled Company Reporter-Asia Pacific reported that the number of children in China affected by melamine-contaminated milk has reached 53,000, with Sanlu's products found to contain the highest levels of the chemical. Melamine is used to make plastics and fertilizer, and can cause kidney stones and lead to kidney failure when consumed. The Wall Street Journal related Fonterra said the events prompted it to book a NZ$139 million impairment charge against the carrying value of its investment in Sanlu, leaving a residual value of NZ$62 million in the Chinese company. WSJ cited Fonterra Chief Executive Officer Andrew Ferrier as saying the Sanlu brand was probably beyond repair. "Sanlu has been damaged very badly. It's hard to say how Sanlu could be reconstructed," he said. About Sanlu Group Sanlu Group is a Chinese dairy products company based in Shijiazhuang, the capital city of Hebei Province. The state-owned company is one of the oldest and most popular brands of infant formula in China. Sanlu is 43% owned by Fonterra. UBS AG: Sells 3.4 Billion Shares in Bank of China ------------------------------------------------- UBS AG has sold its investment of approximately 3.4 billion Bank of China Limited H-shares through a placing to institutional investors, the bank said in a December 31 statement. UBS acquired the approximately 3.4 billion Bank of China H-shares stake in 2005 in preparation for Bank of China's IPO to the international market. UBS said it remains committed to its business relationship with Bank of China and to its businesses in China as a whole, where UBS will continue to develop its already strong client franchise. The Financial Times reports that UBS, the first overseas investor to offload its holding in a major Chinese bank, raised US$835 million from the sale. According to the FT, dealmakers believe the move will herald similar divestments by foreign banks. About UBS AG Based in Zurich, Switzerland, UBS AG (VTX:UBSN) -- http://www.ubs.com/-- is a global provider of financial services for wealthy clients. UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments: Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each. The Industrial Holdings segment holds all industrial operations controlled by the Group. Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. The Investment Bank operates globally as a client-driven investment banking and securities firm. The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business, which primarily invests UBS and third-party funds in unlisted companies. * * * As reported in the Troubled Company Reporter-Europe on Dec. 1, 2008, Moody's Investors Service downgraded its ratings of one credit default swap entered into by UBS AG, London branch. Rating action: UBS AG, London Branch - Credit Default Swap (BLB1): GBP153,727,000 Credit Default Swap with scheduled termination date on October 2014 -- Current Rating: B2 -- Prior Rating: A3 -- Prior Rating Action Date: June 30, 2006 According to Moody's, the rating action is the result of deterioration in the credit quality of the transaction's reference portfolio, which includes but is not limited to exposure to Lehman Brothers Holdings Inc., which filed for protection under Chapter 11 of the U.S. Bankruptcy Code on Sept. 15, 2008, Washington Mutual Inc., which was seized by federal regulators on Sept. 25, 2008 and subsequently virtually all of its assets were sold to JPMorgan Chase, Fannie Mae and Freddie Mac, which were placed into the conservatorship of the U.S. government on Sept. 8, 2008 and one Icelandic bank, specifically Kaupthing Bank hf. ========= I N D I A ========= CHEROKEE INT'L: Completes US$62.3MM Merger w/ Lineage Power's Unit ------------------------------------------------------------------ Cherokee International Corporation disclosed in a filing with the Securities and Exchange Commission that Lineage Power Corporation has completed the acquisition of the company. Cherokee is now a subsidiary of Lineage Power Holdings, Inc. On Sept. 24, 2008, Cherokee entered into an Agreement and Plan of Merger with Lineage Power Holdings, Inc., a portfolio company of The Gores Group, LLC, and Birdie Merger Sub, Inc., a subsidiary of Lineage Power Holdings, Inc. Cherokee entered into a US$67,500,000 Credit Agreement with Wells Fargo Foothill, LLC, as lender and agent, Lineage Power Holdings, Inc., and Lineage Power Corporation. The proceeds from the Credit Agreement were used by Cherokee, among other ways, in connection with the consummation of the Merger, and for general corporate purposes. Cherokee's stockholders, at a special meeting held on Nov. 18, voted for the adoption and approval of the merger agreement, dated Sept. 24, 2008, with Lineage Power Holdings, Inc. and Birdie Merger Sub, Inc., and the transactions contemplated therein, including the merger of the company with Birdie Merger Sub, Inc. Pursuant to the terms of the Merger Agreement, at the Effective Time: 1) each share of common stock of Cherokee, other than shares owned by Cherokee, Lineage Power Holdings, Inc., Birdie Merger Sub, Inc. or any subsidiary of Cherokee, Lineage Power Holdings, Inc. or Birdie Merger Sub, Inc., par value US$0.001 per share, was canceled and automatically converted into the right to receive US$3.20, without interest; 2) each unexercised Cherokee stock option that was outstanding at the Effective Time of the Merger (whether or not then vested) was canceled and converted into the right to receive an amount in cash (subject to applicable withholding taxes) equal to (x) the excess, if any, of US$3.20 per share over the per share exercise or purchase price of such outstanding Cherokee stock option, multiplied by (y) the number of shares of Cherokee common stock underlying such Cherokee stock option; and 3) shares of Cherokee common stock purchased under Cherokee's Employee Stock Purchase Program were canceled and converted into the right to receive US$3.20 per share. As a result of the Merger, Cherokee no longer fulfills the numerical listing requirements of the Nasdaq Global Market. Accordingly, after completion of the Merger, Cherokee requested that Nasdaq (i) suspend trading in Cherokee's common stock starting Nov. 21, 2008, and (ii) file with the Securities and Exchange Commission an application on Form 25 to report that the Shares are no longer listed on Nasdaq. As a result, the Shares will no longer be listed on Nasdaq. Cherokee also intends to file with the SEC a certification on Form 15 under the Securities Exchange Act of 1934, as amended, requesting that the Shares be deregistered and that Cherokee's reporting obligations under Sections 13 and 15(d) of the Exchange Act be suspended. The aggregate consideration paid in respect of the Shares was approximately US$62,322,854. The aggregate consideration was funded by Lineage Power Holdings, Inc. and proceeds from the Credit Agreement. Pursuant to the terms of the Merger Agreement, the directors of Birdie Merger Sub, Inc. immediately prior to the Effective Time became the directors of Cherokee, the surviving corporation in the Merger. Accordingly, upon consummation of the Merger, each of Andrew P. Freedman, Timothy P. Meyer, Mark R. Stone, Frank Stefanik, Ryan D. Wald, Craig A. Witsoe and Steven C. Yager became members of the board of directors of Cherokee. As of the Effective Time, these individuals ceased to be members of the board: Raymond Meyer, Jeffrey M. Frank, John Michal Conaway, Clark Michael Crawford, Larry Schwerin, Edward Philip Smoot, and David H. Robbins. Moreover, effective as of the Effective Time, each of these resigned as an officer of Cherokee: Mr. Frank, Linster W. Fox, Mukesh Patel, Alex Patel, Howard Ribaudo and Michael Wagner. In connection with the consummation of the Merger, Cherokee's certificate of incorporation was amended, effective as of the Effective Time. About Cherokee International Corp. Based in Tustin, California, Cherokee International Corp. (NASDAQ:CHRK) -- http://www.cherokeellc.com/-- is a designer and manufacturer of a range of switch mode power supplies for original equipment manufacturers in the telecommunications, networking, high-end workstations and other electronic equipment industries. The company has offices and manufacturing plants in Tustin and Irvine, California, Wavre, Belgium, Bombay, India, Guadalajara, Mexico, and Penang, Malaysia. Net income for the third quarter of 2008 was US$126,000 compared to a net loss of US$1,309,000 for the third quarter a year ago. Net loss for the nine months ended Sept. 28, 2008, was US$431,000 compared to a net loss of US$4.9 million for the nine months ended Sept. 30, 2007. At Sept. 30, 2008, the company's balance sheet showed total assets of US$94.4 million, total liabilities of US$82.7 million and stockholders' equity of about US$11.7 million. As of Sept. 28, 2008, the company has cash and cash equivalents of US$15.3 million and negative working capital of US$2.8 million due to the US$46.6 million of senior notes in payment default as of Nov. 1, 2008, being classified to current liabilities. The company's revolving line of credit with General Electric Capital Corporation matured on Aug. 25, 2008. The company does not have an existing line of credit for its US domestic company. Going Concern Doubt Mayer Hoffman McCann P.C. in Orange County, California, expressed substantial doubt about the company's ability to continue as a going concern after auditing the consolidated financial statements of Cherokee International Corporation and subsidiaries as of Dec. 30, 2007, and Dec. 31, 2006. The company's management anticipates that there will be insufficient cash balances available to repay the outstanding debt at its maturity. On Nov. 1, 2008, the US$46.6 million aggregate principal amount outstanding under the company's 5.25% Senior Notes will become due and payable. The company does not expect to have sufficient cash available at the time of maturity to repay this indebtedness and are currently working on a variety of possible alternatives to satisfy this obligation. The company also cannot be certain that it will have sufficient assets or cash flow available to support refinancing these notes at current market rates or on terms that are satisfactory to the company. If the company is unable to refinance on terms satisfactory to it, it may be forced to refinance on terms that are materially less favorable, seek funds through other means such as a sale of some of assets, or otherwise significantly alter its operating plan, any of which could have a material adverse effect on its business, financial condition and results of operation. These circumstances create substantial doubt about the company's ability to continue as a going concern. CHEROKEE INTERNATIONAL: Pays US$46.6MM of 5.25% Senior Notes Debt ----------------------------------------------------------------- Cherokee International Corporation anticipates that the outstanding amounts due and payable under the 5.25% Senior Notes, together with default interest on overdue principal, will be paid after the closing of the merger with Birdie Merger Sub, Inc., a subsidiary of Lineage Power Holdings, Inc. The company related that the senior notes will remain an obligation of the company even after the merger transaction. On Nov. 1, 2008, the US$46.6 million aggregate principal amount outstanding under the 5.25% Senior Notes of Cherokee became due and payable. The company did not have sufficient cash available to repay this indebtedness. The company made the interest payment due on November 1 but was unable to pay the principal amount outstanding at maturity and a payment default occurred. As a result of the payment default, in addition to the aggregate principal amount outstanding under the Senior Notes, the company is required to pay interest on overdue principal at the default rate of 6.25% per annum. About Cherokee International Corp. Based in Tustin, California, Cherokee International Corp. (NASDAQ:CHRK) -- http://www.cherokeellc.com/-- is a designer and manufacturer of a range of switch mode power supplies for original equipment manufacturers in the telecommunications, networking, high-end workstations and other electronic equipment industries. The company has offices and manufacturing plants in Tustin and Irvine, California, Wavre, Belgium, Bombay, India, Guadalajara, Mexico, and Penang, Malaysia. Net income for the third quarter of 2008 was US$126,000 compared to a net loss of US$1,309,000 for the third quarter a year ago. Net loss for the nine months ended Sept. 28, 2008, was US$431,000 compared to a net loss of US$4.9 million for the nine months ended Sept. 30, 2007. At Sept. 30, 2008, the company's balance sheet showed total assets of US$94.4 million, total liabilities of US$82.7 million and stockholders' equity of about US$11.7 million. As of Sept. 28, 2008, the company has cash and cash equivalents of US$15.3 million and negative working capital of US$2.8 million due to the US$46.6 million of senior notes in payment default as of Nov. 1, 2008, being classified to current liabilities. The company's revolving line of credit with General Electric Capital Corporation matured on Aug. 25, 2008. The company does not have an existing line of credit for its US domestic company. Going Concern Doubt Mayer Hoffman McCann P.C. in Orange County, California, expressed substantial doubt about the company's ability to continue as a going concern after auditing the consolidated financial statements of Cherokee International Corporation and subsidiaries as of Dec. 30, 2007, and Dec. 31, 2006. The company's management anticipates that there will be insufficient cash balances available to repay the outstanding debt at its maturity. On Nov. 1, 2008, the US$46.6 million aggregate principal amount outstanding under the company's 5.25% Senior Notes will become due and payable. The company does not expect to have sufficient cash available at the time of maturity to repay this indebtedness and are currently working on a variety of possible alternatives to satisfy this obligation. The company also cannot be certain that it will have sufficient assets or cash flow available to support refinancing these notes at current market rates or on terms that are satisfactory to the company. If the company is unable to refinance on terms satisfactory to it, it may be forced to refinance on terms that are materially less favorable, seek funds through other means such as a sale of some of assets, or otherwise significantly alter its operating plan, any of which could have a material adverse effect on its business, financial condition and results of operation. These circumstances create substantial doubt about the company's ability to continue as a going concern. CHERUKATTU: CRISIL Rates Rs.50.00MM Packing Credit Limits at 'P4' ----------------------------------------------------------------- CRISIL has assigned its rating of 'P4' to the various bank facilities of Cherukattu Industries (Cherukattu). Rs.50.00 Million Packing Credit Limits P4(Assigned) Rs.100.00 Million FDBP/FUBP (LC) Limits P4(Assigned) The rating reflects the susceptibility of Cherukattu's margins to fluctuations in foreign exchange rates, and its exposure to risks inherent to the seafood industry which is more pronounced on the supply side as sea food is a depleting commodity and its availability is also impacted due to climatic changes. These weaknesses are, however, partially mitigated by Cherukattu's average financial risk profile and healthy operating efficiencies. About Cherukattu Cherukattu was set up by Mr C M Ahammedkutty; the firm was registered in 1995. Mr. C A Nazer, the eldest son of Mr. Ahammedkutty, is the current managing partner of the firm. The firm is an exporter of seafood, which includes shrimps, cuttlefish, squid, tuna and octopus. All products are exported, mainly to Japan and Europe. Cherukattu reported a profit after tax (PAT) of Rs. 25.60 million on net sales of Rs. 662.07 million in 2007-08 (refers to financial year, April 1 to March 31) as against a PAT of Rs. 51.08 million on net sales of Rs. 804.29 million in 2006-07. CITIGROUP INC: Completes US$512 Mil. Sale of CGSL to TCS -------------------------------------------------------- Citigroup Inc. has successfully completed the sale of Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing business, to Tata Consultancy Services for all cash consideration of US$512 million. In addition to the sale, Citigroup has signed an agreement for TCS to provide through CGSL, process outsourcing services to Citigroup and its affiliates over a period of 9.5 years. The agreement builds upon the existing relationship between Citigroup and TCS whereby TCS provides application development, infrastructure support, help desk and other process outsourcing services to Citigroup. The transaction is expected to help reduce operating expenses related to business processing and will allow Citigroup to focus on its core financial services competencies. Further, it will reduce Citigroup's total headcount by more than 12,000 employees, all of whom are located in India. About Citigroup Based in New York, Citigroup Inc. (NYSE: C) -- http://www.citigroup.com-- is organized into four major segments -- Consumer Banking, Global Cards, Institutional Clients Group, and Global Wealth Management. Citi had $2.0 trillion in total assets on $1.9 trillion in total liabilities as of Sept. 30, 2008. As reported in the Troubled Company Reporter on Nov. 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. As part of the agreement, the U.S. Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of approximately US$306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup will issue preferred shares to the Treasury and FDIC. In addition and if necessary, the Federal Reserve will backstop residual risk in the asset pool through a non-recourse loan. EPITOME COMPONENTS: CRISIL Rates Rs.43.0MM Cash Credit at 'BB+' --------------------------------------------------------------- CRISIL has assigned its rating of 'BB+/Stable/P4' to the various bank facilities of Epitome Components Ltd (Epitome). Rs.43.0 Million Cash Credit BB+/Stable(Assigned) Rs.25.0 Million Proposed Cash Credit BB+/Stable(Assigned) Rs.87.9 Million Existing Term Loan BB+/Stable(Assigned) Rs.137.2 Million Proposed Term Loan BB+/Stable(Assigned) Rs.100.0 Million Letter of Credit P4(Assigned) and Bank Guarantee Rs.30.0 Million Proposed Letter of P4(Assigned) Credit and Bank Guarantee The rating reflects Epitome's high leverage, its exposure to risks relating to project execution, intense competition in the single- sided printed circuit board (PCB) industry, small scale of operations, and limited earnings diversity. These weaknesses are, however, partially offset by Epitome's established presence in the single-sided PCB segment, good prospects for the end-user industry, and strong profile of its customers. Outlook: Stable CRISIL believes that Epitome will maintain and enhance its market position with the implementation of its capacity expansion project. The outlook may be revised to 'Positive' if the company's business risk profile improves considerably, or its debt levels reduce. Conversely, the outlook may be revised to 'Negative' if the debt levels increase beyond current expectations. About Epitome Promoted by Mr. Shrigopal Dhoot, Epitome manufactures single-sided PCBs. The company has two plants located at Ahmednagar (Maharashtra), with a combined installed capacity of 1.2 million square metres per annum. PCBs are used in computer monitors and keyboards, telecom products, home appliances, set top boxes, and lighting products. As part of its growth strategy, Epitome is currently implementing a project to manufacture double-sided and multi-layered PCBs. For 2007-08 (refers to financial year, April 1 to March 31), Epitome reported a profit after tax (PAT) of Rs.13.7 million on net sales of Rs.460 million, as against a PAT of Rs.8.3 million on net sales of Rs.395 million for 2006-07. For the six months ended September 30, 2008, Epitome had a PAT of around Rs.3.7 million on net sales of Rs.258 million. GENERAL MOTORS: Gets US$4 Billion in Low-Interest Loans From Gov't ------------------------------------------------------------------ Jeff Bennett at The Wall Street Journal reports that General Motors Corp. said it received US$4 billion in low-interest loans from the federal government on Wednesday, the first installment of US$9.4 billion in loans that the company would receive through January. According to WSJ, GM secured loan guarantees earlier in December 2008 after President George W. Bush gave automakers permission to use the US$700 billion bank bailout passed by Congress in September. The report says that the loans will last for three years and will be called by the government if the companies haven't proven their viability by March 31, 2009. WSJ relates that GM will use the money to fund its continuing operations. The company will receive another US$4 billion loan in February, says the report. GM said in a statement, "We appreciate the administration extending a financial bridge to GM at this critical time for the U.S. auto industry. We are committed to successfully executing the viability plan we submitted on Dec. 2 and remain confident in the future of GM." New Reduced Rate Financing GM disclosed a new reduced rate financing as low as 0% APR for up to 60 months on select new cars and trucks. The reduced rate financing is available to qualified buyers through Jan. 5, 2009 on many 2008 and select 2009MY vehicles. Of note, many of the GM vehicles have stackable bonus cash and/or dealer cash ranging from US$500 to US$4,250. "We're very excited to offer this reduced rate financing through GMAC to encourage our customers to get back into the game," said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. "This enables even more qualified customers to finance through GMAC at their local GM dealership, and provides additional financing capacity with conventional and reduced rate APRs for our dealers to make sales. With GM's Financing That Fits, and the Red Tag Sale now underway that offers supplier pricing, customers have an opportunity to get a variety of extremely attractive offers through the end of the year." 2008MY vehicles and offers for qualified buyers: -- 0% APR for up to 60 months on '08 Chevrolet TrailBlazer; GMC Envoy; and Saab 9-3, 9-5, 9-7X; -- 0.9% APR for up to 60 months on '08 Buick Lucerne; -- 1.9% APR for up to 60 months on '08 GMC Yukon and Yukon XL; Chevrolet Tahoe, Suburban and Avalanche; Cadillac CTS, SRX, Escalade, DTS, STS and XLR; -- 2.9% APR for up to 60 months on '08 Buick Lacrosse; HUMMER H2 and H3; -- 3.9% APR for up to 60 months on '08 Chevrolet Equinox, Colorado Ext and Crew cab and Light Duty Silverado; Pontiac Torrent; GMC Canyon Ext and Crew cab, and Light Duty Sierra; and -- 4.9% APR for up to 60 months on '08 Saturn Astra and Sky; Pontiac Solstice; Chevrolet Corvette and Heavy Duty Silverado; and Heavy Duty GMC Sierra 2009MY vehicles and offers for qualified buyers: -- 3.9% APR for up to 60 months on '09 Chevrolet Cobalt; Pontiac G5; and Cadillac CTS; -- 4.9% APR for up to 60 months on '09 Pontiac G6; Chevrolet Malibu, Light Duty Silverado and HHR; Saturn Aura; and Light Duty GMC Sierra; and -- 5.9% APR for up to 60 months on '09 Chevrolet Avalanche and Heavy Duty Silverado; and Heavy Duty GMC Sierra. Seeks Ways to Eliminate Dealerships GM wants to eliminate dealerships, WXYZ.com reports. The report says that a glut of dealers are limiting profits and crimping spending on marketing, facilities, and vehicles. According to WXYZ.com, GM wants to close about 1,750 showrooms, about 27% of its total dealership ranks. The report states that GM is negotiating dealership closures on a market by market basis, offering cash payments as incentives. 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. M. S. DYEING: CRISIL Rates Rs.70.84 Mil. Long Term Loan at 'B' -------------------------------------------------------------- CRISIL has assigned its ratings of 'B/Stable/P4' to the various bank facilities of M. S. Dyeing Company (MS Dyeing). Rs.70.84 Million Long Term Loan B/Stable (Assigned) Rs.2.50 Million Overdraft Limit B/Stable (Assigned) Rs.3.86 Million Bank Guarantee Limits P4(Assigned) The ratings reflect MS Dyeing's exposure to risks relating to concentration of revenues, and small scale of operations. These weaknesses are, however, partially mitigated by MS Dyeing's established presence in the dyeing industry and moderate financial risk profile underpinned by low gearing and comfortable debt protection measures. Outlook: Stable CRISIL expects MS Dyeing to maintain its current business and financial risk profiles over the medium term backed by its established presence in Tirupur textile market. The outlook may be revised to 'Positive' if the company significantly scales up and diversifies its operations and customer profile, leading to better than expected cash accruals and significant improvement in financial and business risk profiles. Conversely, the outlook may be revised to 'Negative' if the company undertakes greater-than- expected debt-funded capex, which will affect its capital structure, or if there is substantial decline in volumes or margins, resulting in a weaker financial risk profile. About MS Dyeing MS Dyeing was established in 1983 by Mr. Shanmugasundharam in Tirupur, Tamil Nadu. It is into dyeing of cotton and polyester fabrics. It has a dyeing capacity of around 6-8 tons of fabric per day. For 2007-08 (refers to financial year, April 1 to March 31), MS Dyeing reported a profit after tax (PAT) of Rs.7.9 million on net sales of Rs.88.4 million as against a PAT of Rs.5.1 million on net sales of Rs.75.1 million for 2006-07. VIMAL DAIRY: CRISIL Rates Rs 120.0MM Cash Credit at 'B+' ----------------------------------------------------------- CRISIL has assigned its ratings of 'B+/Stable/P4' to the bank facilities of Vimal Dairy Ltd (Vimal Dairy). Rs 120.0 Million Cash Credit B+/Stable (Assigned) Rs.22.5 Million Long Term Loans B+/Stable (Assigned) Rs.1.0 Million Bank Guarantee P4 (Assigned) The ratings reflect limited geographical diversity in Vimal Dairy's revenues, its weak financial risk profile, and the moderate level of regulatory control in the dairy industry in India. These rating weaknesses are mitigated by the strategic location of Vimal Dairy's plant, and the company's moderate level of product diversity and healthy industry prospects. Outlook: Stable CRISIL expects Vimal Dairy to maintain its average business risk profile over the medium term. The company's financial risk profile too will remain weak during this period. The outlook could be revised to 'Positive' in case of a significant improvement in the company's credit profile, through reduction in debt or through guarantees from group company Vimal Oil and Foods Ltd (rated 'BB+/Stable/P4' by CRISIL). Conversely, the outlook could be revised to 'Negative' if the company incurs more debt- funded capital expenditure, adversely affecting its credit risk profile. About Vimal Dairy Vimal Dairy is part of the Gujarat-based Vimal group. The group has varied interests including edible oils, dairy and dairy products, cables and winding wires, capacitors and transformers, submersible pumps, resins and paints, and micronised mineral powder. Vimal Dairy is an established player in dairy and dairy products in Gujarat. The company has 115 distributors, largely in Gujarat. Vimal Dairy also sells through wholesale traders and supplies to organised retail players. The company has a fully- integrated plant at Mehsana for processing milk and milk products. For 2007-08 (refers to financial year, April 1 to March 31), Vimal Dairy reported a profit after tax (PAT) of Rs.3.1 million (Rs.3.6 million in the previous year) on net revenues of Rs.585.0 million (Rs.460.6 million). For the six months ended September 30, 2008, the company reported a profit before tax (PBT) of Rs 3.5 million on net revenues of Rs.425.6 million. WELSET PLAST: CRISIL Puts 'BB' Rating on Various Bank Facilities ---------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Negative/P4' to the various bank facilities of Welset Plast Extrusions Pvt Ltd (Welset). Rs.110.0 Million Cash Credit BB/Negative(Assigned) Rs.25.3 Million Term Loan BB/Negative(Assigned) Rs.114.7 Million Proposed Long BB/Negative(Assigned) Term Facilities Rs.30.0 Million Letter of Credit P4(Assigned) Rs.5.0 Million Bank Guarantee P4(Assigned) Rs.15.0 Million Proposed Short P4(Assigned) Term Facilities The ratings reflect Welset's exposure to risks relating to low bargaining power with customers, and its moderate financial risk profile marked by low net worth, high working capital requirements and weak debt protection measures. These weaknesses are, however, partially mitigated by Welset's established presence in the business and longstanding relationships with customers. Outlook: Negative CRISIL believes that Welset Plast Extrusions Pvt Ltd's (Welset's) financial risk profile is likely to remain weak marked by low net worth and weak debt protection measures. The rating may be revised downwards if further deterioration in the company's financial risk profile led by losses on high inventory levels results in liquidity pressures, and impacts its debt-servicing ability. The outlook could be revised to 'Stable' if there is improvement in the company's financial risk profile led by sustained improvement in profitability, better working capital management and equity infusion. About Welset Welset, promoted by Mr. Arvind Mehta and family, is a manufacturer of colour masterbatches, medical grade poly vinyl chloride (PVC) compounds and thermoplastic elastomers. The company caters to diverse customer segments and also exports to a number of countries. The company's manufacturing facilities are located at Silvassa in Gujarat. Welset recorded a profit after tax (PAT) of Rs.9.9 million on net revenues of Rs.516 million in 2007-08 (refers to financial year ending March 31) as against a PAT of Rs.10 million on net revenues of Rs.396 million for 2006-07. ========= J A P A N ========= NATIXIS SA: To Cut Workforce in Japan by 85% -------------------------------------------- Natixis SA plans to slash 85 per cent of jobs at its Tokyo branch, Japan Today reports citing a bank spokeswoman. The spokeswoman, Japan Today relates, however denied that the bank was planning to close down its Tokyo offices altogether as reported in the French economy daily La Tribune. Japan Today quoted the spokeswoman as saying "We will not close our Tokyo operations but we explained on Dec. 18 that we would end our activity in complex markets." "We will remain active on the shares markets in Japan, which requires a local presence," the spokeswoman said. Japan Today recalls Natixis announced earlier this month that it stood to lose up to EUR450 million (US$605 million) in "indirect exposure" to the scandal surrounding New York investment manager Bernard Madoff. Natixis SA -- http://www.natixis.com/-- formerly Natexis Banques Populaires, is a France-based bank listed on the Euronext Paris Stock Exchange. The Bank is involved in the banking sector and offers five main types of services: financing and investment banking, asset management, services, receivables management, private equity and private banking. Natixis also consolidates a proportion of the earnings of the retail banking activities of the Caisse d'Epargne Group and the Banque Populaire Group, its main shareholders. The Bank clientele comprises large corporations, medium-sized companies, institutions and the Banque Populaire retail-banking network. The Bank operates in 68 countries located in France, Europe, the Americas, Africa, Asia and Oceania. ==================== N E W Z E A L A N D ==================== NATHANS FINANCE: Receivers to Pursue Identified Claims ------------------------------------------------------ Receivers of Nathans Finance NZ Ltd said they have identified potential claims that can be made against various parties associated with Nathans and its parent VTL Group Limited. In an update to investors, Colin McCloy and John Waller of PriceWaterHouseCoopers said legal action on the claims is to be commenced shortly. The receivers have also notified the U.S. Securities and Exchange Commission ("SEC") with respect to matters of concern relating to dealings in the US. The receivers said they will continue to investigate the affairs of both Nathans and VTL and assist various Government agencies with their investigations. As reported by the Troubled Company Reporter-Asia Pacific on Dec. 29, 2008, the Securities Commission laid charges against Nathans Finance Ltd's directors for allegedly making false statements in company prospectuses. In a news release, the Securities Commission said it laid criminal charges and issued civil proceedings against Nathans Finance directors John Hotchin, Donald Young and Kenneth Moses. Criminal charges and civil proceedings have also been filed against a fourth director believed to be resident in Australia. In addition, The New Zealand Press Association (NZPA) reported that the Serious Fraud Office (SFO) confirmed it is investigating Nathans Finance. According to the report, SFO director Grant Liddell said the investigation followed a complaint made by the receivers, PricewaterhouseCoopers. About Nathans Finance and VTL Nathans Finance Ltd went into receivership when the finance company's trustee, Perpetual Trust Limited, appointed receivers on Aug. 20, 2007. Nathans is a subsidiary of VTL Group Limited, which has declared itself insolvent. Trading in VTL Group Limited shares is currently suspended. VTL Group Limited owns a number of vending machine related businesses which operate in New Zealand, Australia, North America and Europe. * NEW ZEALAND: Electronic Card Spending Fell 2.8% in November 2008 ------------------------------------------------------------------ The seasonally adjusted value of the total Electronic Card Transaction (ECT) series decreased 2.8 percent in November 2008 compared with October 2008, Statistics New Zealand said today. This was the largest monthly drop since the series began in October 2002. The main contributor to the drop was a substantial decrease in the value of fuel sales, while fuel prices continued to decline. The rate of growth in the total ECT trend series has eased since August 2008 and is now almost flat. After adjusting for seasonal effects, the value of the retail ECT series was down 2.3 percent in November 2008 compared with October 2008, led by the drop in fuel sales. Smaller falls in the hospitality and durables industries were offset by a rise in the consumables industry. The seasonally adjusted core retail ECT series (which excludes the motor vehicle-related industries) decreased 0.5 percent in November 2008, following an increase of 0.9 percent in October. There were 88 million electronic transactions in November 2008 with a value of NZ$4.8 billion. ======= O M A N ======= * OMAN: Sees US$2.1 Bil. Budget Deficit on Low Oil Prices --------------------------------------------------------- Oman will record a budget deficit of OMR810 million (US$2.1 billion) this year as oil prices decline, Bloomberg News reported citing state-run Oman News Agency. According to the report, Oman News Agency said the sultanate's budget for 2009 is based on an average oil price of US$45 a barrel, with revenue seen at OMR5.614 billion and expenditure at OMR6.424 billion. Bloomberg News relates oil prices have tumbled 70 percent from a record US$147.27 on July 11, 2008, while futures declined 54 percent last year. ********* 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 2009. 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 ***