/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090302.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, March 2, 2009, Vol. 12, No. 42 Headlines A U S T R A L I A CITY PACIFIC: Trilogy Capital to Launch Takeover Bid for Fund DRIVETRAIN INTERNATIONAL: Sacks 222 Workers at its Albury Plant FORTESCUE METALS: Moody's Notes Equity Raising from Valin Sale OZ MINERALS: Gets Loan Extension; Posts AU$2.5 Bln. Full Year Loss PAPERLINX: Incurs $560.9 Million First Half Net Loss SEVEN NETWORK: Declared Worthless Due to Mountain of Debts C H I N A CHINA EASTERN: Shareholders Approve CNY7 Bln Share Placement CHINA EASTERN: Sells 35% Stake in Joy Air SHANGHAI AIRLINES: To Raise CNY1 Bln in Share Placement H O N G K O N G ADVANCED ELASTOMER ET AL: Members to Meet on March 23 ALLIANZ GLOBAL: Creditors' Meeting Set for March 10 BIL KWONG: Court to Hear Wind-Up Petition on April 8 DELUXE WAY: Members to Receive Wind-Up Report on March 23 GARTLETT INVESTMENTS: Court to Hear Wind-Up Petition on March 25 HUA FENG: Commences Wind-Up Proceedings KEEN BILLION: Court to Hear Wind-Up Petition on March 25 NEWTON COURT: Commences Wind-Up Proceedings ORIENTAL CHASE: Court to Hear Wind-Up Petition on March 11 OZ WING: Moody's Assigns Provisional Rating on Secured Notes PEACE MARK: Court to Hear Wind-Up Petition on April 15 RICH STANDARD: Court to Hear Wind-Up Petition on April 15 SOUTH HARBOUR: Members to Receive Wind-Up Report on March 24 WANNA INTERNATIONAL: Court to Hear Wind-Up Petition on March 18 WEALTH DRAGON: Members to Receive Wind-Up Report on March 24 WING MOU: Members & Creditors to Hold Annual Meetings on March 12 I N D I A SPICEJET LTD: Plans to Set Up Feeder Service TATA MOTORS: To Launch Nano Cars on March 23 I N D O N E S I A ARPENI PRATAMA: Fitch Downgrades Issuer Default Rating to 'B+' BANK MANDIRI: To Restructure IDR3 Trillion of Debts Owed by Firms BERLIAN LAJU: Fitch Downgrades Issuer Default Rating to 'B' FAJAR SURYA: Fitch Cuts Issuer Rating on US$100 Mil. Notes to 'B' INDOSAT: Net Profit Fell 8% to IDR1.8 Trillion in 2008 LIPPO KARAWACI: Fitch Gives Negative Outlook; Affirms 'B+' Rating PT CENTRAL: Fitch Affirms Long-Term Issuer Default Rating at 'B' PT PAKUWON: Weak Pre-sales Activities Cue Fitch's Junk Rating * INDONESIA: Approves IDR73.3 Trillion Stimulus Package J A P A N SAIZEN REIT: Moody's Downgrades Corporate Family Rating to 'Ba1' * S&P Cuts Ratings on 7 Tranches From 44 Japanese CDO Deals P H I L I P P I N E S ON-SITE SOURCING: March 27 Auction; Secured Lender Leads Bidding S I N G A P O R E 2 BROTHERS: Creditors' Proofs of Debt Due on March 27 INDOVER FORFAITING: Creditors' Proofs of Debt Due on March 25 JURONG HI-TECH: Placed Under Judicial Management Order PETROPOOL (S) PTE: Court Enters Wind-Up Order WEI INTERIOR: Court Enters Wind-Up Order S O U T H A F R I C A DEALSTREAM: Pretoria High Court Orders Final Liquidation X X X X X X X X * S&P Junks Ratings on 6 Tranches From 50 Asia-Pacific CDOs - - - - - ================= A U S T R A L I A ================= CITY PACIFIC: Trilogy Capital to Launch Takeover Bid for Fund ------------------------------------------------------------- The Australian reported that Trilogy Capital Group will launch a hostile takeover bid within weeks for City Pacific Limited's AU$1 billion City Pacific First Mortgage Fund. According to the report, Trilogy chairman Rodger Bacon said the fund manager had contacted "close to 1000" City Pacific fund investors and was close to launching an official takeover, seeking more than 50 per cent control. The Australian states that the fund has about 11,000 investors and for Trilogy to gain control it requires support from voters controlling more than 50 per cent of the fund's 887 million issued shares. Mr. Bacon, the Australian relates, said Trilogy would seek to replace City Pacific Limited as the responsible entity controlling the fund. The Troubled Company Reporter-Asia Pacific reported on Feb. 23, 2009, that City Pacific Limited disclosed that it has negotiated a 12 month extension to the repayment date for City Pacific's corporate facilities of AU$95.5 million and City Pacific First Mortgage Fund's ("the Fund") finance facility of AU$108 million. Both facilities have been extended from February 26, 2009 to February 26, 2010. City Pacific Limited (ASX: CIY) -- http://www.citypac.com.au/ -- is a diversified financial services company, providing finance and investment products. City Pacific, a non-bank loan provider, has AU$5 billion in mortgage assets under advice, comprising over AU$1 billion funds under management in the City Pacific First Mortgage Fund, City Pacific Income Fund, City Pacific Managed Fund and City Pacific Private Fund, a residential loan book of AU$3.3 billion and commercial mortgage assets under management of approximately AU$800 million. City Pacific originates nearly AU$3 billion per annum in loans to fund residential property, property development, commercial property investment, plant & equipment and business finance. * * * City Pacific reported a net loss after tax of AU$139.53 million for the financial year ended June 30, 2008, compared with a net profit of AU$73.21 million in the previous year. The company also reported an operating profit before impairment and tax of AU$55.5 million down 58.4% from previous year's operating profit of AU$133.42 million. DRIVETRAIN INTERNATIONAL: Sacks 222 Workers at its Albury Plant --------------------------------------------------------------- A total of 222 workers at Drivetrain Systems International's car factory in Albury have been laid off without receiving their full entitlements, various reports say. The job cuts, Heraldsun relates, were announced last week after workers were sent home without pay. The Heraldsun says that the remaining 167 employees were offered eight weeks of work on a contract with Ford Motor Company, which will start on March 9. However, the Heraldsun states, a workers' union said the jobs will continue if receiver PricewaterhouseCoopers finds a buyer for the plant. According to the Heraldsun, the Australian Manufacturing Workers Union (AMWU) said Drivetrain's failure to pay full redundancy entitlements was a "disgrace." ABC News reports that the union called on the federal government to ensure the displaced workers will get timely assistance. Paul Bastian from the union, as cited by ABC News, said normally, workers do not get help through the Federal Government's General Employee Entitlements and Redundancy Scheme (GEERS) until a company is liquidated. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 18, 2009, the SmartCompany said Drivetrain Systems was placed into receivership with debts of AU$30 million to AU$40 million. The company's production has been suspended for weeks with its 400 workers stood down. According to SmartCompany, receivers and manager Stephen Longley from PricewaterhouseCooopers will assess the company's financial position and attempt to sell the business as a going concern. Drivetrain Systems, SmartCompany said, has been hit hard by the collapse of Korean car maker SsangYong Motor. Its customers in India and Russia have also cut back in recent months, the report notes. Drivetrain Systems International is a car parts manufacturer. The company employs about 380 at Lavington in Albury and 20 in Melbourne, Australia. FORTESCUE METALS: Moody's Notes Equity Raising from Valin Sale -------------------------------------------------------------- Moody's Investors Service has noted Fortescue Metals Group Ltd's announcement of an equity raising from the Hunan Valin Iron & Steel Group Company Ltd in a share sale worth A$558 million. Fortescue is the owner of FMG Finance, the financing vehicle rated B1/negative by Moody's. "Moody's understands that the proceeds from the equity raising will be used for general corporate purposes at Fortescue, and are therefore not earmarked for immediate use in deleveraging and/or expansion programs at the rated project level," says Ian ChanChong, a Moody's VP/Senior Analyst. "As such, Moody's is not taking any rating action at this point in time, and will closely monitor developments and assess the rating as the company articulates further its intention over the of use of the proceeds and the potential expansion of its mining capacity for iron ore," says ChanChong. "Moody's will also be mindful of any potential changes to the ownership structure of Fortsecue if such changes signal a major shift in its business strategy." Moody's had previously highlighted the high level of leverage evident at Fortescue, taking into account that the company is in a ramp-up phase and the prevailing challenges evident in the steel market. The last rating action was on December 17, 2008 when the outlook on the B1 ratings of FMG Finance Pty Ltd was changed from stable to negative. Fortescue Metals Group, based in Perth, is an emerging iron ore producer engaged in the exploration and mining of iron ore for export mainly to China. OZ MINERALS: Gets Loan Extension; Posts AU$2.5 Bln. Full Year Loss ------------------------------------------------------------------ OZ Minerals Ltd. has received an extension to refinance its AU$1.2 billion (US$776 million) debt, clearing a hurdle for an agreed takeover by China Minmetals Group, Bloomberg News reports. In a filing to the Australian Securities Exchange, OZ Minerals said it has secured approval to extend the terms of its debt arrangements from Feb. 27 to March 31, 2009. Meanwhile, Bloomberg News says OZ Minerals reported a AU$2.5 billion ($1.6 billion) full-year loss after asset writedowns as commodity prices fall. In the 12 months ended Dec. 31, Bloomberg News says, the company writedowns totaled AU$2.3 billion. OZ Minerals, Bloomberg News relates, reported an underlying loss of AU$66.4 million. "This result was impacted by falls in prices across our major commodities, significant impairment of assets and other asset write downs, a number of one-off costs associated with the acquisition of Zinifex by Oxiana to form OZ Minerals and restructuring costs," OZ Minerals Managing Director and CEO Andrew Michelmore said in a statement. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 18, 2009, Minmetals offered to purchase all outstanding shares in OZ Minerals at a cash price of 82.5 cents per share. Bloomberg News related the extension of OZ Minerals's debt facilities is a condition of China Minmetals Group's AU$2.6 billion takeover offer. About China Minmetals China Minmetals is one of the largest metals and minerals trading companies in the world and the largest iron and steel trader in China. The company exports coke, coal, and ferroalloys; imports iron ore, steel scraps, and slabs and billets; and sells about 20 million tons of steel products annually. It has domestic iron ore mining operations and also helps steel producers abroad with facility construction and equipment supply. Other subsidiaries deal in financial services, real estate development, and transportation logistics. China Minmetals' sales network stretches through Africa, the Americas, Asia, Australia, and Europe. It operates more than 100 offices in China and more than 40 companies abroad. About OZ Minerals OZ Minerals Limited, formerly Oxiana Limited, -- http://www.ozminerals.com/-- is an Australia-based mining company. The company is a producer of zinc, copper, lead, gold and silver. OZ Minerals was formed through a merger of Australia- based international mining companies Oxiana Limited and Zinifex Limited. The company has five mining operations located in Australia and Asia, three new mining projects in development and a portfolio of advanced and early-stage exploration projects throughout Australia, Asia and North America. Its projects include the Century mine in Queensland, Sepon copper operation in Laos, the gold operation at Sepon, the Golden Grove underground base and precious metals mine in Western Australia, the Rosebery mine in Tasmania, the Avebury nickel mine in Tasmania, the Prominent Hill copper-gold project in South Australia, the Martabe gold project in Indonesia, the Dugald River deposit in Queensland, and the Izok Lake and High Lake copper and zinc deposits in the Nunavut territories of Canada. * * * As reported by the Troubled Company Reporter-Asia Pacific on December 12, 2008, Fitch Ratings downgraded OZ Minerals Limited's Long-term foreign currency Issuer Default Rating to 'CC' from 'BBB-' (BBB minus), and has simultaneously withdrawn it. The rating remained on Rating Watch Negative at the time of withdrawal. PAPERLINX: Incurs $560.9 Million First Half Net Loss ---------------------------------------------------- PaperlinX has reported a first half net loss of $560.9 million after a $567.5 million impairment charge on its Australian Paper unit, The Age News reports. According to the report, PaperlinX, which is selling Australian Paper to Nippon Paper for $700 million, placed an impairment on the carrying value of the unit of $567.5 million. "While we have incurred a significant loss this half as a result of this transaction, we have also taken an important step to secure the financial stability of the company", PaperlinX Chief Executive Officer Tom Park was quoted by the Age as saying. The company recorded revenue of $3.8 million, flat on the prior corresponding period, and declared no interim dividend, down from 3 cents in the prior first half, the report relates. PaperlinX, as cited by the report, said it had a reasonable operating result, reporting profit after tax but before significant items of $6.6 million. Divisional operating earnings (excluding Corporate) of $92 million was down eight per cent versus the prior corresponding period as market driven volume weakness was mitigated by favourable gross profit margins and accelerated expense reductions, the report discloses. "We have seen a difficult external environment depressing volumes by 7% versus the prior corresponding period and our returns in the first half were also impacted by the cost of carrying the upfront investment in the pulp mill upgrade ahead of the December 2008 start up," Mr. Park was quoted by the news agency as saying. Australia-based PaperlinX Limited (ASX:PPX) -- http://www.paperlinx.com.au/-- is a fine paper merchant and manufacturer of communication and packaging paper. PaperlinX employs over 9,600 people in 28 countries. SEVEN NETWORK: Declared Worthless Due to Mountain of Debts ---------------------------------------------------------- Seven Network has been declared worthless as it works to repay an estimated US$2.5 billion in debt, The Australian News reports. According to the report, the company said the revaluation reflected the "current global economic challenges and declines in the overall advertising market", being experienced by all media companies. The report relates Kerry Stokes, the biggest shareholder and executive chairman of Seven Network, confirmed it had cut the value of its 47 per cent stake in the Seven Media Group (SMG), from $793.9 million to zero. However, Mr. Stokes, as cited by the report, said "nothing in all of our testing would give us any indication" that SMG could breach on its debt covenants. The Australian News recounts that Seven Network received a $2.5 billion cash windfall in late 2006 from the sale to KKR of half its old media assets. But the sale also involved pumping a similar amount of debt into SMG. The Seven Network is an Australian television network owned by the Seven Media Group. It is currently the largest network in the country in terms of population reach. ========= C H I N A ========= CHINA EASTERN: Shareholders Approve CNY7 Bln Share Placement ------------------------------------------------------------ China Eastern Airlines Corporation Limited has won approval from shareholders for a share placement plan that will bring it a capital injection of CNY7 billion ($1.02 billion) from the government, China Daily reports. According to the report, China Eastern said it will issue to its state parent 1.44 billion new Shanghai-listed A shares at CNY3.87 each and 1.44 billion Hong Kong-listed H shares at CNY1 each. China Eastern, the report relates, said the funds will be used to improve its balance sheet and strengthen its ability to continue operations. Meanwhile, China Daily says, China Southern also announced a share placement to its parent in exchange for a CNY3 billion cash injection from the government in late 2008. Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com� principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. * * * China Eastern continues to carry Fitch Ratings' B+ foreign currency and local currency issuer default ratings, and Xinhua Far East China Ratings' BB+ issuer credit rating with a stable outlook. CHINA EASTERN: Sells 35% Stake in Joy Air ----------------------------------------- China Eastern Airlines Corporation Limited has agreed to sell a 35 percent stake in regional carrier Joy Air Co Ltd to Aviation Industry Corp of China (AVIC), Reuters reports citing China Eastern Chairman Liu Shaoyong. Citing company sources, Reuter says China Eastern wanted to sell a roughly 30 percent stake in Joy Air to bolster its strapped finances. According to the report, AVIC owns a majority of Joy Air while China Eastern holds a 40 percent stake. Joy Air, Reuters notes, is capitalised at CNY1 billion ($146.3 million). Headquartered in Shanghai, China, China Eastern Airlines Corporation Limited's -- http://www.ce-air.com� principal activity is operation of domestic and international commercial air transportation. The Group also is involved in the common aircraft industry. Other activities include general aviation, air catering, advertisement, import and export, equipment manufacturing, real estate, hotel business, finance and training. The fleet includes more than 60 large and medium size airplanes, Airbus and Boeing mostly. Its operation centering from Shanghai to the whole People's Republic of China and linking to Asia, Europe, America and Australia. * * * China Eastern continues to carry Fitch Ratings' B+ foreign currency and local currency issuer default ratings, and Xinhua Far East China Ratings' BB+ issuer credit rating with a stable outlook. SHANGHAI AIRLINES: To Raise CNY1 Bln in Share Placement ------------------------------------------------------- Shanghai Airlines Co. Limited plans to raise CNY1 billion (US$146 million) through the issuance of non-public shares to Jin Jiang International Holdings Co Ltd., China Daily reports. According to the report, the airline said it would issue 200 million additional shares to Jin Jiang International, currently its third largest shareholder, in a swap deal. With the deal, China Daily relates, Jin Jiang International would overtake Bank of China Group Investment Ltd as its second largest shareholder, next only to Shanghai Lianhe Investment Ltd, which holds 35.73 percent stake in the airlines. "This money would help lower Shanghai Airlines' debt-to-equity ratio by 5.9 percent, to 85.45 percent, and shore up its operational cash flow," the report quoted Li Lei, an analyst with CITIC China Securities, as saying. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 22, 2009, Reuters said Shanghai Airlines net loss for 2008 could be double than the previous year amid weak travel market. The carrier posted CNY435 million net loss in 2007. According to Reuters, the airline also reported CNY170 million in unrealised fuel hedging losses as of Dec. 31, 2008, following a tumble in fuel prices during the second half of the year. About Shanghai Airlines Shanghai Airlines Co., Limited -- http://www.shanghai-air.com -- is a China-based commercial airline company. The company mainly provides air passenger and air cargo transportation services and air mail services domestically and internationally. The company also develops traveling, import and export trading and advertising businesses. As of December 31, 2007, the company had 58 airplanes. In 2007, the company develops 10 new national airlines and three new international airlines. During the year ended December 31, 2007, the company transported approximately 9.45 million passengers and 327,400 metric tons of cargos. As of December 31, 2007, the company had 15 major subsidiaries and associates. ================ H O N G K O N G ================ ADVANCED ELASTOMER ET AL: Members to Meet on March 23 ----------------------------------------------------- On March 23, 2009, Wong Lung Tak, Patrick presented the companies wind-up report and property disposal to the members of: -- Advanced Elastomer Systems Hong Kong Limited; and -- Mei Foo Oil Limited. The Liquidator can be reached at: Wong Lung Tak, Patrick China Insurance Group Building Room 1101, 11th Floor 141 Des Voeux Road Central Hong Kong ALLIANZ GLOBAL: Creditors' Meeting Set for March 10 --------------------------------------------------- The creditors of Allianz Global Investors Pacific Limited are required to file their proofs of debt by March 10, 2009, to be included in the company's dividend distribution. The company's liquidators are: Derek Lai Darach Haughey Mark W. R. Smith One Pacific Place, 35th Floor 88 Queensway Hong Kong BIL KWONG: Court to Hear Wind-Up Petition on April 8 ---------------------------------------------------- A petition to have Bill Kwong Universal International Engineering Company Limited's operations wound up will be heard before the High Court of Hong Kong on April 8, 2009, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on February 3, 2009. The Petitioner's solicitors are: Tsang, Chan & Wong Wong On House, 16th Floor No. 71 Des Voeux Road Central Hong Kong DELUXE WAY: Members to Receive Wind-Up Report on March 23 --------------------------------------------------------- The members of Deluxe Way Investment Limited will receive the liquidator's report on the company's wind-up proceedings and property disposal on March 23, 2009, at 10:00 a.m., at Suite 1408 of Two Exchange Square, in 8 Connaught Place Hong Kong. GARTLETT INVESTMENTS: Court to Hear Wind-Up Petition on March 25 ---------------------------------------------------------------- A petition to have Gartlett Investments Limited's operations wound up will be heard before the High Court of Hong Kong on March 25, 2009, at 9:30 a.m. Securities and Futures Commission filed the petition against the company on January 20, 2009. The Petitioner's solicitor is: JSM Prince's Building, 18th Floor 10 Chater Road, Central Hong Kong HUA FENG: Commences Wind-Up Proceedings --------------------------------------- On February 12, 2009, the shareholders of Hua Feng Dah Company Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Chan Sun Kwong Beverley Commercial Centre Office No. 1818, 18th Floor 87-105 Chatham Road Tsimshatsui, Kowloon Hong Kong KEEN BILLION: Court to Hear Wind-Up Petition on March 25 -------------------------------------------------------- A petition to have Keen Billion Limited's operations wound up will be heard before the High Court of Hong Kong on March 25, 2009, at 9:30 a.m. Lam Kit Seng Pankie filed the petition against the company on January 21, 2009. NEWTON COURT: Commences Wind-Up Proceedings ------------------------------------------- At an extraordinary general meeting held on February 10, 2009, the members of Newton Court Seafood Restaurant Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Cheuk Yee Man Room 2810, 28th Floor 113 Argyle Street Kowloon ORIENTAL CHASE: Court to Hear Wind-Up Petition on March 11 ---------------------------------------------------------- A petition to have Oriental Chase Industrial Limited's operations wound up will be heard before the High Court of Hong Kong on March 11, 2009, at 9:30 a.m. Citic Ka Wah Bank Limited filed the petition against the company on January 5, 2009. The Petitioner's solicitors are: Li & Partners World Wide House Rooms 2201-03, 22nd Floor 19 Des Voeux Road Central Hong Kong Telephone: 2501 0088 Facsimile: 2501 0028 OZ WING: Moody's Assigns Provisional Rating on Secured Notes ------------------------------------------------------------ Moody's Investors Service has assigned a provisional rating of (P)A2 to the Secured Floating Rate Loan to be borrowed by OZ Wing Cayman Limited. The provisional rating is based on an unconditional and irrevocable credit facility as well as an interest rate swap to be provided by the Industrial Bank of Korea ("IBK", rated A2/Prime-1/D+). Deutsche Bank AG, Hong Kong Branch acts as the arranger of the deal. The rating addresses the expected loss posed to investors by the legal final maturity. In Moody's opinion, the structure allows for timely payment of interest and the scheduled principal repayments of the loan by the relevant loan payment date. The rating on the loan will be linked to the rating of IBK. The complete rating action is: Borrower: OZ Wing Cayman Limited -- JPY [4] Billion of Secured Floating Rate Loan due April 2012, rated (P)A2 In assigning the provisional rating, Moody's considered among other things, these factors: 1. The unconditional and irrevocable credit facility to be provided by IBK 2. The IRS with IBK as the swap counterparty 3. The legal and structural protections in the transaction 4. The adequate capacity of Deutsche Bank AG and its affiliate and subsidiaries as key transaction parties Transaction Summary At closing, the borrower - a newly established, bankruptcy remote, special purpose company to be incorporated in the Cayman Islands - will borrow the Yen [4] billion secured floating rate loan and use the loan proceeds to acquire a Yen-denominated variable rate bond to be issued by the bond issuer, a limited liability special securitization company to be incorporated in Korea. The bond issuer will then apply the proceeds to acquire an investor beneficiary certificate from the originator, Asiana Airlines, Inc. On the closing date, Asiana Airlines, Inc., Tokyo branch will entrust a portfolio of Yen-denominated future airline ticket receivables and a reserve fund to a Japanese Trust in exchange for an investor beneficiary certificate, a second investor beneficiary certificate, and a seller beneficiary certificate. Asiana Tokyo will then deliver the investor beneficiary certificate to Asiana based on an inter-branch memorandum. The payments to the investor beneficiary certificate and to the second investor beneficiary certificate will rank pari passu and will be senior to the seller beneficiary certificate. At closing, the second investor beneficiary certificate has zero balance and receives no payment. The loan will pay monthly Yen-Libor linked interest, and its principal will be repaid according to a pre-defined monthly amortization schedule. Upon satisfaction of certain conditions precedent, the borrower may increase the loan amount up to an additional Yen [6] billion by the first loan payment date in April 2009. The additional loan amount will ultimately be paid to Asiana in exchange for the second investor beneficiary certificate, whose balance will be increased from zero at closing to an amount equal to the additional loan amount. The loan will benefit from the unconditional and irrevocable credit facility and the IRS to be provided by IBK. The credit facility is Yen-denominated in an amount designed to cover the full amount of the loan principal repayment, the fixed swap payments payable by the borrower under the IRS, the scheduled senior fees and expenses, credit facility fees, and a cushion to cover extraordinary expenses. The commitment amount under the credit facility will decrease by an amount equal to the actual loan principal repayments, the swap payments, the senior fees and expenses, and the credit facility fees. The IRS to be entered with IBK is to mitigate the mismatch between the fixed commitment amount under the credit facility and floating amount payment obligation under the loan. IBK will take both the roles of the swap counterparty and the credit facility provider. In the event that IBK's rating changes, the rating of the loan will be affected. PEACE MARK: Court to Hear Wind-Up Petition on April 15 --------------------------------------------------------- A petition to have Peace Mark Production Limited's operations wound up will be heard before the High Court of Hong Kong on April 15, 2009, at 9:30 a.m. Corporoactive Limited filed the petition against the company on February 10, 2009. The Petitioner's solicitor is: Richards Butler Alexandra House, 20th Floor 16-20 Chater Road Central, Hong Kong RICH STANDARD: Court to Hear Wind-Up Petition on April 15 --------------------------------------------------------- A petition to have Rich Standard Investment Limited's operations wound up will be heard before the High Court of Hong Kong on April 15, 2009, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on February 10, 2009. The Petitioner's solicitors are: Tsang, Chan & Wong Wing On House, 16th Floor No. 71 Des Voeux Road Central Hong Kong SOUTH HARBOUR: Members to Receive Wind-Up Report on March 24 ------------------------------------------------------------ The members of South Harbour Holdings Limited will receive the liquidator's report on the company's wind-up proceedings and property disposal on March 24, 2009, at 11:30 a.m., at the 20th Floor of Tung Wai Commercial Building, 109-111 Gloucester Road, in Wanchai, Hong Kong. WANNA INTERNATIONAL: Court to Hear Wind-Up Petition on March 18 --------------------------------------------------------------- A petition to have Wanna International Limited's operations wound up will be heard before the High Court of Hong Kong on March 18, 2009, at 9:30 a.m. Mak Sheung Yim Limited filed the petition against the company on January 12, 2009. WEALTH DRAGON: Members to Receive Wind-Up Report on March 24 ------------------------------------------------------------ The members of Wealth Dragon Trading Limited will receive the liquidator's report on the company's wind-up proceedings and property disposal on March 24, 2009, at 10:00 a.m., at Flat A, 16th Floor of United Centre, in 95 Queensway, Hong Kong. WING MOU: Members & Creditors to Hold Annual Meetings on March 12 ----------------------------------------------------------------- The members and creditors of Wing Mou Construction Company Limited will hold their annual meetings on March 12, 2009, at 2:00 p.m. and 2:30 p.m., respectively, at the 18th Floor of 1801 Wing On House, 71 Des Voeux Road, in Central, Hong Kong. At the meeting, Stephen Briscoe, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= SPICEJET LTD: Plans to Set Up Feeder Service -------------------------------------------- SpiceJet Ltd is planning to set up an airline connecting smaller cities in the country to lure rail passengers, Bloomberg News reports. The plan, Bloomberg News says, will enable SpiceJet to win some of India's 15 million daily rail passengers. "For aviation to grow, we have to win customers from the trains," Bloomberg News cited Chief Executive Officer Sanjay Aggarwal as saying in an interview with Bloomberg Television from New Delhi. "To win the customers, we have to provide the connectivity that trains provide." But, according an analyst cited by the report, Spicejet has to overcome challenges including better train fares and the need to supplement a fleet of Boeing Co. 737 aircraft with smaller jets. "In smaller sectors, you have to keep your costs to a minimum, as you can�t really be much more expensive than trains," Binit Somaia, a Sydney-based director at Centre for Asia Pacific Aviation, told Bloomberg News in a phone interview. According to the report, Mr. Aggarwal said Spicejet, the only Indian discount airline to fly an all-Boeing fleet, may lease aircraft with a capacity of 40 to 60 seats to set up the feeder service. Mr. Aggarwal, Bloomberg News relates, said the carrier will also consider starting flights to the Middle East, Southeast Asia, Nepal and other neighboring countries when it gets permission to fly overseas in May 2010. SpiceJet Limited -- http://www.spicejet.com/-- is an airline carrier in India. During the fiscal year ended May 31, 2007 (fiscal 2007), the company increased its fleet size to 11 aircrafts covering 14 destinations and operating 83 daily flights. The aircrafts acquired during fiscal 2007, were the next generation Boeing737-800. The company has also integrated with Tata AIG Insurance Company Limited to commence travel insurance sales, which was launched in May 2007. * * * SpiceJet Limited booked annual net losses of Rs. 707.43 million in 2007 and Rs. 1,335.07 million in 2008. TATA MOTORS: To Launch Nano Cars on March 23 -------------------------------------------- Tata Motors Limited said it will launch its Tata Nano cars on March 23, 2009, in Mumbai. Tata Motors said the cars will be on display at Tata Motors dealerships from the first week of April 2009. The company will start accepting bookings in the second week of April 2009. Meanwhile, citing Bild newspaper in an interview with Tata, Bloomberg News reports the company will sell the Nano in Europe for 5,000 euros ($6,347). Tata Motors, the newspaper said, will present the European version of the Nano next month at the Geneva car show, Bloomberg News relates. As reported by the Troubled Company Reporter-Asia Pacific on Jan. 14, 2008, Tata Motors unveiled the much-hyped world's cheapest car, which Tata Group Chairman Ratan N. Tata hopes will get India's masses off motorbikes and into cars. The four-door People's Car or the Tata 'NANO,' can seat four persons and measures 3.1 meters in length, 1.5 meters in width and stands 1.6 meters. The TCR-AP on Sept. 22, 2008, reported that the plan to introduce the world's smallest car on September 2008 was derailed after Tata Motors suspended operations at Singur in response to violent protests conducted by Trinamool Congress at the site. The party, who is representing farmers affected by the Nano project, demanded return of 400 acres of land out of the 997 acres Tata Motors acquired. On Oct. 8, 2008, the TCR-AP reported that after a month-long work suspension, Tata Motors finally decided to move its Nano car project out of Singur in the State of West Bengal citing heightened level of agitation and hostility by opposition party, Trinamool Congress, led by Ms. Mamata Banerjee. The company then relocated the mother plant for its Nano car project to Sanand in Gujarat. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on Dec. 2, 2008, Moody's Investors Service downgraded the corporate family rating of Tata Motors Ltd to B1 from Ba2. The outlook remains negative. "The rating change reflects the slowdown in demand seen in both Tata Motors Ltd's domestic and overseas markets. This translates into pressure on profitability, and happens at a time when the company has increased its leverage. Tata Motors Ltd's financial flexibility is therefore significantly weakened," Elizabeth Allen, a Moody's Vice President/Senior Credit Officer said. The TCR-AP reported on July 9, 2008, that Standard & Poor's Ratings Services kept its 'BB' corporate credit rating on India's Tata Motors Ltd. On CreditWatch with negative implications, pending finalization of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co. (B/Watch Neg/--). At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', after the announcement of the agreement with Ford Motor Co. for the purchase of Jaguar and Land Rover. Tata Motors paid about US$2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford contributed US$600 million to the Jaguar-Land Rover (JLR) pension plans. ================= I N D O N E S I A ================= ARPENI PRATAMA: Fitch Downgrades Issuer Default Rating to 'B+' -------------------------------------------------------------- Fitch Ratings has downgraded PT Arpeni Pratama Ocean Line Tbk's Long-term foreign and local currency Issuer Default Ratings to 'B+' from 'BB-' (BB minus) and its National Long-term rating to 'A(idn)' from 'A+(idn)'. The rating on the US$160 million senior unsecured notes due 2013 has also been downgraded to 'B' from 'BB-' based on a recovery rating of 'RR5'. All ratings have been placed on Rating Watch Negative pending the conclusion of two newbuild product tanker sales in March 2009. The rating downgrades are based on Fitch's expectation that Arpeni's leverage will continue to remain higher than that appropriate for its previous ratings. Fitch understands that for 2009 Arpeni has renewed contracts for intra-Indonesian coal transportation on similar terms as in 2008, and will benefit from full year contributions from several new assets purchased in 2008. However, of concern is its increased exposure to the international shipping business, which will suffer as a result of significantly weakened demand and freight rates. Despite this, Fitch is of the view that Arpeni can maintain its net leverage below 4x, supported by its intra-Indonesian operations. Given the difficulties in credit markets, Fitch believes Arpeni will limit its capex in 2009 to currently committed amounts of around US$70m, which can be funded, to a large extent, with operating cash generation. Fitch will resolve the RWN pending the sale of two product tankers that are to be delivered in March 2009. Arpeni has sold three of five product tankers that were delivered in 2008. The same counterparty has agreed to purchase the remaining two vessels upon delivery. Any deviations from this arrangement can result in Arpeni having to pay around US$40 million to the shipyard, which will stretch its liquidity. If this transaction is concluded as expected by the company, the Outlook on the ratings is most likely to be revised to Stable. The downgrade of the senior unsecured rating below the IDR reflects the relatively high level of secured indebtedness limiting the available recovery value to Arpeni's senior unsecured creditors. BANK MANDIRI: To Restructure IDR3 Trillion of Debts Owed by Firms ----------------------------------------------------------------- The Jakarta Post reports that Bank Mandiri is to restructure IDR3 trillion (around US$225 million) in debts owed by a number of firms hard hit by the global downturn. The restructuring was being made at the request of the companies, which are mostly footwear and textile exporters, The Post cited Mandiri director Abdul Rachman as saying. The report, citing Mr. Abdul, relates that under the restructuring, which will start to take effect from March until June, each debtor would be given the chance to reschedule their debt payment of up to one year. Each debtor could delay payment on the debt principal instalments, but would still be required to pay the interest, the report noted. About Bank Mandiri PT Bank Mandiri -- http://www.bankmandiri.co.id/-- is Indonesia's largest and best capitalized bank in terms of assets, loans and deposits, and provides comprehensive financial services to more than six million corporate and individual consumers, as well as small and medium-sized enterprises in Indonesia. * * * The Troubled Company Reporter-Asia Pacific reported on Dec. 7, 2007, that Fitch Ratings upgraded the Individual Rating of PT Bank Mandiri (Persero) Tbk (Mandiri) to 'C/D' from 'D', and its National Long-term rating to 'AA+ (idn)' from 'AA (idn)'. The outlook on the national rating remains stable. At the same time, Fitch affirmed the company's Long-term foreign and local currency Issuer Default ratings at 'BB-' with a Positive Outlook, Short-term IDR at 'B' and Support Floor at 'B+'. On Oct. 19, 2007, Moody's Investors Service raised Bank Mandiri's foreign currency senior/subordinated debt ratings to Ba2/Ba2 from Ba3/Ba3 and foreign currency long- term deposit rating to B1 from B2. BERLIAN LAJU: Fitch Downgrades Issuer Default Rating to 'B' ----------------------------------------------------------- Fitch Ratings has downgraded PT Berlian Laju Tanker Tbk's Long- term foreign and local currency Issuer Default Ratings to 'B' from 'B+'. The Outlook has been revised to Negative from Stable. At the same time, the senior unsecured rating on the US$400 million notes due 2014 issued by BLT Finance B.V and guaranteed by BLT has been downgraded to 'CCC' from 'B' following the lowering of the recovery rating on the notes to 'RR6' from 'RR5'. These rating actions follow Fitch's expectation of BLT's leverage increasing over the short-to-medium-term following the rapid deterioration in the global shipping markets. The outlook for the chemical tanker segment is much weaker than initially expected due to weaker demand. The difficult shipping and credit market conditions will lead to higher newbuilding cancellations and increased scrapping. However, given the weak demand the sector will likely be plagued by overcapacity over the next several years. Although BLT will continue to benefit from having a young fleet, risk to its earnings are high given the company's high reliance on the spot market and on short-term charters. BLT's short-term liquidity appears sufficient with around US$200m cash and its short-term facilities currently rolled-over. Committed capex in 2009 is not high at around US$60m. However, Fitch is concerned over the company's high capex and relatively high debt maturities in 2010. Its committed capex for 2010 is around US$140m and holders of its US$125 million convertible bond have an option to put the notes to the issuer. Committed capex in 2011 is higher at around US$300m. The Negative Outlook reflects the possibility of further negative rating actions should the shipping markets continue to deteriorate and affect BLT's cash generation and debt servicing ability. Further negative rating actions may also be taken if the aforementioned issues relating to liquidity and high capex are not addressed adequately in a timely fashion. The downgrading of the recovery rating on the notes reflects BLT's higher-than-expected secured indebtedness. The new secured credit facilities obtained in 2008 remain fully drawn and are expected to remain so. FAJAR SURYA: Fitch Cuts Issuer Rating on US$100 Mil. Notes to 'B' ----------------------------------------------------------------- Fitch Ratings has downgraded PT Fajar Surya Wisesa Tbk's Long-term foreign currency and local currency Issuer Default Ratings and the issue rating of its US$100 million senior notes to 'B' from 'B+', and affirmed the recovery rating of the senior notes at 'RR4'. At the same time, the agency has downgraded Fajar's National Long- term rating to 'BBB(idn)' from 'A-(idn)' (A minus(idn)). The Outlook is Negative. The rating downgrades reflect Fajar's deteriorating financial profile due to a significant drop in its sales volumes Q408, to about 149 kilo tonnes compared to an average of 175 KT in each previous quarter of the year. Also, towards the end of 2008 average selling prices in US$-terms had decreased by 34%, compared to the beginning of the year, and decreased by 20% in Indonesian Rupiah-terms. Weak demand and currently low selling prices are expected to continue in 2009, while a possible recovery will rely mainly on a recovery in the global economy. Fitch acknowledges that as a step towards preserving cash and not leveraging further, Fajar has decided to postpone capex for its Paper Machine (PM-5) expansion project. The project cost is estimated to be around US$85 million, for which Fajar had secured a syndicated loan of US$70 million. The project has not commenced and the only costs that Fajar has incurred are loan commitment fees and a down payment on the machineries amounting to US$2.55 million. In view of continuous weak demand, Fajar's future cash flow generation is expected to fall significantly. Coupled with revenue and margin pressures, the agency expects leverage to remain high at above 3x in FY2009 and FY2010. The Negative Outlook reflects Fitch's concern that Fajar's profitability and cash flow generation could be under further pressure due to prolonged weak economic conditions and the volatility in raw material prices. A continued decline in demand and selling price could result in significantly higher leverage levels. The company's rating could face downward pressure if net adjusted debt/EBITDAR is sustained above 5.5x or interest coverage ratio (measured by Operating EBITDA/gross interest expenses) is sustained below 1.5x. Other potential negative rating triggers include a resumption of its PM-5 expansion project, without a significant improvement in domestic demand and difficulty in renewing its revolving facilities. Established in 1988, Fajar is one of the largest non-integrated producers of industrial paper in Indonesia with total installed capacity of 700,000 tonnes per annum. Mr. Winarko Sulistyo owns a 69.9% beneficial interest in the company. INDOSAT: Net Profit Fell 8% to IDR1.8 Trillion in 2008 ------------------------------------------------------ PT Indosat disclosed that its 2008 net profit declined by 8% to IDR1.8 trillion (US$151.2 million) from IDR2.04 trillion a year earlier, due to stiffer competition and losses from the weakening rupiah, The Jakarta Post reports. According to the report, the fall in the rupiah contributed to the 55 percent overall increase in Indosat�s expenses during the year. Of the total IDR2.4 trillion spent in 2008, at least IDR885.7 billion simply reflected foreign exchange losses. However, as Indosat hedged 52 percent of its dollar-denominated loans and bonds, the company managed to reduce the impact of potential losses and even managed to gain IDR136.6 billion from hedging in 2008, up by 100 percent on hedging gains of IDR68 billion in 2007, the report relates. Despite a drop in profit growth, the company�s fundamentals remained strong, with revenue growing at 13.2 percent to IDR18.66 trillion in 2008 even under unfavorable conditions in the last quarter of the year, according to Jakarta Post. The report adds Indosat�s cellular business, which contributed 76 percent to the company�s revenue, grew 11 percent to IDR14.1 trillion, while its multimedia and fixed telephone businesses rose by 26 percent and 11.3 percent respectively to IDR2.7 trillion and IDR1.7 trillion. About Indosat PT Indosat Tbk -- http://www.indosat.com/-- is a telecommunication and information service provider in Indonesia that provides cellular services (Mentari, Matrix and IM3), fixed telecommunication services or fixed voice (IDD 001, IDD 008 and FlatCall 01016, fixed wireless service StarOne and I-Phone). Indosat also provides Multimedia, Internet & Data Communication Services (MIDI) through its subsidiary company, Indosat Mega Media (IM2) and Lintasarta. Indosat also provides 3.5 G with HSDPA technology. Indosat's shares are listed in the Indonesia Stock Exchange (IDX:ISAT) and its American Depository Shares are listed in the New York Stock Exchange (NYSE:IIT). * * * As reported by the Troubled Company Reporter-Asia Pacific on February 27, 2009, Fitch Ratings upgraded PT Indosat Tbk's Long- term foreign currency Issuer Default Rating to 'BB+' from 'BB-' (BB minus) and Long-term local currency IDR to 'BBB-' (BBB minus) from 'BB-' (BB minus). The Outlook is Stable. At the same time, the ratings on Indosat's senior unsecured notes programme have been upgraded to 'BB+' from 'BB-' (BB minus). The TCR-AP also reported on October 8, 2008, that Moody's Investors Service confirmed the Ba1 local currency corporate family rating of PT Indosat, and the Ba2 foreign currency senior unsecured bond rating of Indosat Finance Company B.V. and Indosat International Finance Company B.V. The outlook on all ratings is stable. LIPPO KARAWACI: Fitch Gives Negative Outlook; Affirms 'B+' Rating ----------------------------------------------------------------- Fitch Ratings has revised the Outlook on PT Lippo Karawaci Tbk's ratings to Negative from Stable and affirmed the Long-term foreign currency and local currency Issuer Default Ratings at 'B+', and National Long-term rating at 'BBB+(idn)'. At the same time, Fitch has affirmed the rating of 'B+' and recovery rating of 'RR4' on the US$250 million senior unsecured notes due 2011 issued by Lippo Karawaci Finance B.V. and guaranteed by LK. The Outlook revision reflects Fitch's concern that the company's cash flow generation may be affected by the slowdown in the Jakarta property market, which is more severe and protracted than initially expected. Although LK may be able to mitigate some of this risk by re-phasing some of its development projects, the agency believes that a low take-up rate could possibly weaken the company's credit profile. Fitch notes that as a remedial step to preserve cash and not leverage further, LK has decided to scale down its capex programme by deferring the commencement of its major investment projects such as hospitals, lease malls and hotels. In the mean time, the company will only focus on the development of major projects that have already been launched (Superblock Kemang Village and Superblock St. Moritz). Launches to date in both Kemang Village and St. Moritz have achieved take-up rates that enable them to be profitable. However, the company will likely face a slowing demand for new launches as the market remains subdued due to weakening economic fundamentals. LK's ratings are supported by its position as one of the leading property developers in Indonesia with a diversified revenue base and project portfolio, strong liquidity position and significant cash flow from recurring businesses. In the first nine month of 2008 (9M08), around 57% of LK's EBITDA was derived from its recurring businesses, i.e. healthcare, hospitality, township infrastructure and property management, which partially mitigates the risks arising from the lumpiness of the cash flow generated from property development. At end-September 2008, LK had cash balance of IDR1,614bn which implies that it will be able to fund its near term capex programme. The company has modest debt repayment obligations until the US$250 million notes mature in 2011 but has annual operating lease commitments of at least SGD24.1 million, arising from a sale and leaseback transaction completed in December 2006. LK also derives some financial flexibility from the large land bank inventory it owns, though the ability to monetise land bank is usually constrained during periods of stress. LK is the largest listed property company in Indonesia with business interests in housing and land development, healthcare and hospitals, and hospitality and infrastructure. Its major shareholders are the Lippo Group companies (24%), China Resources (Holdings) Co. Ltd. (13%) and the investment banking real estate arm of Austrian Raiffeisen Bank, CP Inlandsimmobilien-Holding GmbH (7%). Note to editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(idn)' for National ratings in Indonesia. Specific letter grades are not therefore internationally comparable. PT CENTRAL: Fitch Affirms Long-Term Issuer Default Rating at 'B' ---------------------------------------------------------------- Fitch Ratings has affirmed Indonesia's PT Central Proteinaprima Tbk's Long-term foreign currency Issuer Default Rating and senior unsecured ratings at 'B'. The Outlook is Negative. The ratings have been affirmed despite CPP's shrimp exports being investigated by the United States Customs and Border Protection agency. In Q408, the US Customs held 41 containers of CPP's frozen shrimp under the suspicion that the shrimps had been transhipped from China. The US Customs released all the containers in December 2008, allowing CPP to re-package and re-export the shrimps to other markets. Subsequently, CPP appealed to the US Government and in January 2009, the company invited the US Customs to audit its ponds in Indonesia. The outcome of the investigation is expected to be released shortly. If the transhipment is proven, some of the importers of CPP's shrimps into the US would have to pay an antidumping import duty of 112.8%. Although this action may affect only a portion of CPP's exports to the US (which accounts for roughly 60% of CPP's exports), Fitch will closely monitor this issue and its impact to CPP's sales volume and cash flow generation going forwards. CPP's rating reflects the company's highly leveraged position which did not improve as previously expected. Financial leverage (measured by adjusted debt net of cash to operating EBITDAR) was 4.8x for the first nine months of 2008. As demand for shrimp is expected to slow down due to the economic recession in main consuming countries such as the US, Europe and Japan, the agency expects cash flow generation will be lower than previously expected and leverage to remain high in FY2009 and FY2010. The Negative Outlook reflects Fitch's concern that CPP's profitability and cash flow generation will be under further pressure due to a weakening global economy. Given its low operating margins, continued decline in frozen shrimp price and/or a material reduction in sales volume from projected level could result in significantly higher leverage levels. The company's rating could face downward pressure if net adjusted debt/EBITDAR is sustained above 5.5x or interest coverage ratio (measured by Operating EBITDA/gross interest expenses) is sustained below 1.5x. Other potential negative rating triggers include a decline of frozen shrimp prices of more than 5% from the FY2008 average; unplanned new material capital outflow; and difficulty in renewing its revolving bank facilities Founded in 1980 by the Charoen Pokphand Group, a conglomerate engaged in agro-industrial and aquaculture businesses in Thailand, CPP is one of the world's largest shrimp producers and processors. The Jiaravanon family, which is the controlling shareholder of CPG, has a majority beneficial interest in the company. PT PAKUWON: Weak Pre-sales Activities Cue Fitch's Junk Rating ------------------------------------------------------------- Fitch Ratings has downgraded PT Pakuwon Jati Tbk's Long-term foreign and local currency Issuer Default Ratings to 'CCC' from 'B-' (B minus) and its National Long-term rating to 'B(idn)' from 'BB(idn)'. At the same time, the rating of the US$110 million senior notes due 2011, issued by Pakuwon Jati Finance B.V. and guaranteed by Pakuwon and its subsidiaries, has been downgraded to 'CCC' from 'B-' (B minus) and affirmed the recovery rating at 'RR4'. Fitch has also downgraded the rating of Pakuwon's Senior Bond I due 2011 (outstanding IDR71.4 billion) to 'B(idn)' from 'BB(idn)'. The agency has simultaneously removed all the ratings from Rating Watch Negative and assigned a Negative Outlook. The rating actions reflect further weak pre-sales activities from its Superblock development project in Gandaria, South Jakarta and Fitch's expectations that the Jakarta property market will continue to worsen materially in 2009. In the last two months of 2008, the company had registered minimal pre-sales from its strata-title condominium and office tower at Gandaria of about IDR8 billion. Fitch notes that the company's debt amortisation and interest payment in 2009 can be adequately met by its cash position, from the collection from its pre-sales activities and recurring cash flows from Superblock Tunjungan City, its mature retail mall in Surabaya. However, Pakuwon's ability to meet subsequent amortisation of US$27.5 million and capex programme for Gandaria's construction of IDR303 billion in 2010 is mainly reliant on Gandaria's pre-sales and additional bank funding. Fitch acknowledges that the company had postponed the development of a hotel tower at Gandaria to preserve cash. However, since the capex planned for the hotel is only around 10% of the total development cost of the project of around IDR1.7 trillion (excluding land acquisition cost), this action is insufficient to improve liquidity. Fitch notes that at the end of 2008, Pakuwon had obtained additional long-term bank loan of IDR45 billion (outstanding IDR3.6 billion). Nonetheless, based on the company's calculations, it needs additional external debt of around IDR200 billion in 2010 in order to finance Gandaria's capex and to meet its debt amortisation. This additional debt requirement might further increase if the prevailing weak pre-sales continues further. The Negative Outlook reflects Fitch's concern that the company's liquidity position will be under further pressure particularly in meeting the scheduled debt amortisation in 2010 onwards, especially given the increased difficulty of obtaining bank funding. Further delays in the Gandaria project, a significant deterioration in pre-sales from projected levels and/or difficulty in obtaining bank funding may result in a negative rating action. Pakuwon is a listed property company in Indonesia with a presence in commercial property investment and development (retail, hotel and office segments) and residential property development, primarily in Surabaya but expanding into Jakarta. Pakuwon achieved revenues of IDR444 billion and EBITDA of IDR234 billion in 2007. Founder Alexander Tedja's family has a 72.7% beneficial interest in the company. * INDONESIA: Approves IDR73.3 Trillion Stimulus Package ------------------------------------------------------- After weeks of debate, Indonesia's parliament budget committee has approved a IDR73.3 trillion (US$6.15 billion) stimulus package to protect its economy from the worst of the global economic crisis, The China Post reports citing lawmakers. "We hope that the stimulus can prevent rising unemployment, sustain consumer spending capability and strengthen businesses," Committee Deputy Chairman Suharso Monoarfa was quoted by The Post as saying. Indonesia's economy has slowed due to falling commodity prices and plunging demand for its exports from major buyers such as Japan and the United States, the report noted. ========= J A P A N ========= SAIZEN REIT: Moody's Downgrades Corporate Family Rating to 'Ba1' ---------------------------------------------------------------- Moody's Investors Service has downgraded Saizen REIT's corporate family rating to Ba1 from Baa3. At the same time, the rating remains on review for possible downgrade. "The downgrade reflects Moody's expectation that Saizen is unlikely to achieve the operating scale built into its originally assigned Baa3 rating, as the credit market remains tight, and could deteriorate further in view of the de-leveraging evident in the banking system," says Kaven Tsang, a Moody's AVP/Analyst. "Meanwhile, Saizen is exposed to a high level of refinancing risk in 4Q2009 and asset devaluation risk. The latter could narrow the headroom for loan covenant compliance," adds Tsang, also Moody's lead analyst for the trust. "Saizen's internal reserves can cover the debt maturing in 1H2009, but it still has to secure additional financing, including the rights issues announced at end-2008, to meet a total of JPY13.4 billion in CMBS maturing in 4Q2009." "The tightened nature of the global credit environment and the distressed state of the banking sector add material uncertainty to the company's refinancing process, while it is also exposed to the weakening in the operating environment as Japan's recession deepens," he continues. Partly mitigating these concerns is the fact that its properties are in cities whose rental housing markets display fairly stable histories, even during the downturns of the late 1990s and early 2000s. Saizen's temporary suspension of cash dividend payouts would also help preserve liquidity. Saizen's rating remains on review for possible downgrade and the review will focus on the company's financing risk exposure, and abilities to raise new equity fund and complete the refinancing of its maturing CMBS against the backdrop of turbulence in the financial markets. Further downward rating pressure would evolve if Saizen's liquidity position weakens, in the event that 1) Saizen fails to complete its rights issues, 2) there is no material progress in securing committed funds -- over the next 3 months -- to refinance the debt maturing in November and December 2009, or 3) it makes a cash dividend payout beyond expectations. Additionally, the rating could be downgraded if Sazien's projected financial profile weakens with Debt/EBITDA above 9x on a sustained basis. The last rating action was on 2 February 2008 when Saizen's rating was put on review for possible downgrade. Saizen REIT is a multi-family REIT investing in Japanese regional residential properties. It listed on the Singapore Stock Exchange in November 2007. Its portfolio has 166 residential properties in 13 Japanese regional cities. The total value of properties under management is around JPY49 billion (US$500 million). By revenue, Sapporo is the largest contributor, representing 26%, followed by Hiroshima (17%), and Kumamoto (14.7%). * S&P Cuts Ratings on 7 Tranches From 44 Japanese CDO Deals ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 51 tranches relating to 44 Japanese synthetic CDO transactions. Standard & Poor's also removed its ratings on 35 of the 51 tranches from CreditWatch, while keeping the ratings on the other 16 on CreditWatch with negative implications. At the same time, Standard & Poor's raised its ratings on two tranches relating to two Japanese synthetic CDO transactions, and removed the ratings from CreditWatch with positive implications. The rating actions are part of S&P's regular monthly review of synthetic CDOs whose ratings have been placed on CreditWatch with positive or negative implications. The upgrades are mainly attributable to the rating migration of reference entities including, among other things, the rating upgrade of GMAC LLC. from 'SD' to 'CCC' on Feb. 4, 2009, and that of Clear Channel Communications Inc. from 'SD' to 'B' on Dec. 24, 2008. Ratings List Corsair (Jersey) No. 2 Ltd. Floating-rate credit-linked notes series 56 To From Issue Amount -- ---- ----- ------ BB- B/Watch Pos JPY2.2 bil. Fixed rate credit-linked notes series 64 To From Issue Amount -- ---- ----- ------ B CCC+/Watch Pos $50.0 mil. Floating-rate secured portfolio credit-linked notes series 76 To From Issue Amount -- ---- ----- ------ CCC B-/Watch Neg $20.0 mil. Floating-rate secured portfolio credit-linked notes series 78 To From Issue Amount -- ---- ----- ------ CCC/Watch Neg B/Watch Neg JPY3.0 bil. Floating rate secured portfolio credit-linked notes series 86 To From Issue Amount -- ---- ----- ------ CCC- CCC/Watch Neg $10.0 mil. Eirles Two Ltd. L1 credit linked secured loan 2004-4 To From Issue Amount -- ---- ----- ------ AA/Watch Neg AAA/Watch Neg JPY4.0 bil. Portfolio credit linked secured notes series 310 Class To From Issue Amount ----- -- ---- ----- ------ A BBB- BBB/Watch Neg JPY5.0 bil. B B+ BB-/Watch Neg JPY1.0 bil. ELM B.V. Global portfolio CDO secured notes series 43 To From Issue Amount -- ---- ----- ------ CCC B/Watch Neg $20.0 mil. Elysium class B secured credit linked notes series 97 To From Issue Amount -- ---- ----- ------ CCC-/Watch Neg CCC/Watch Neg $20.0 mil. Ethical CDO I (Jersey No. 1) Ltd. Floating-rate extendible maturity secured portfolio credit-linked notes series 2 To From Issue Amount -- ---- ----- ------ CCC CCC+/Watch Neg A$50.0 mil. Helium Capital Ltd. Corporate basket credit-linked note series 60 (Esperance) To From Issue Amount -- ---- ----- ------ CCC+ B-/Watch Neg A$85.0 mil. Limited recourse secured floating rate credit-linked notes series 65 To From Issue Amount -- ---- ----- ------ CCC- CCC+/Watch Neg JPY2.0 bil. J-Bear Funding Ltd. Limited recourse secured floating rate portfolio credit-linked notes ( Series 31) To From Issue Amount -- ---- ----- ------ BB-/Watch Neg BB+/Watch Neg JPY3.0 bil. Limited recourse secured floating rate portfolio credit-linked notes series 36 To From Issue Amount -- ---- ----- ------ BB/Watch Neg BBB-/Watch Neg $10.0 mil. Momentum CDO (Europe) Ltd. SONATA notes series 2006-2 Class To From Issue Amount ----- -- ---- ----- ------ AF BB-/Watch Neg BB+/Watch Neg JPY2.0 bil. AX BB-/Watch Neg BB+/Watch Neg JPY1.1 bil. SONATA floating rate notes series 2006-5 Class To From Issue Amount ----- -- ---- ----- ------ AF B+/Watch Neg BBB-/Watch Neg EUR5.0 mil. SONATA notes series 2006-7 Class To From Issue Amount ----- -- ---- ----- ------ BF B- BB-/Watch Neg JPY100.0 mil. BX B- BB-/Watch Neg JPY700.0 mil. SONATA fixed-rate notes series 2006-10 Class To From Issue Amount ----- -- ---- ----- ------ AX B- BB-/Watch Neg EUR20.0 mil. SONATA floating rate notes series 2006-11 To From Issue Amount -- ---- ----- ------ BB+/Watch Neg BBB-/Watch Neg $6.0mil. OPALE floating and fixed-rate credit linked notes series 2006-12 Class To From Issue Amount ----- -- ---- ------------ AF CCC-/Watch Neg CCC+/Watch Neg JPY1.0 bil. AX CCC-/Watch Neg CCC+/Watch Neg JPY600.0 mil. Floating-rate credit-linked notes series 2006-20 To From Issue Amount -- ---- ------------ CCC- CCC/Watch Neg JPY1.0 bil. SONATA 4 floating rate notes series 2006-21 To From Issue Amount -- ---- ------------ CCC- CCC/Watch Neg $20.0 mil. SONATA 5 floating rate notes series 2006-22 To From Issue Amount -- ---- ------------ CCC CCC+/Watch Neg $10.0 mil. Omega Capital Investments PLC Class A-1 series 11 secured 1.5% notes To From Issue Amount -- ---- ------------ BBB AA-/Watch Neg JPY2.2 bil. Secured multi rate notes series 21 Class To From Issue Amount ----- -- ---- ------------ A1 B/Watch Neg BB-/Watch Neg $20 mil. A2 B/Watch Neg BB-/Watch Neg JPY300.0 mil. Secured multi rate notes series 32 Class To From Issue Amount ----- -- ---- ------------ A1 CCC+ B-/Watch Neg JPY500.0 mil. A2 CCC+ B-/Watch Neg JPY300.0 mil. Series 48 secured notes Class To From Issue Amount ----- -- ---- ------------ 5Y-A1 B B+/Watch Neg JPY1.3 bil. 5Y-A2 B B+/Watch Neg JPY1.2 bil. Signum Vanguard Ltd. Class A secured fixed rate credit-linked loan series 2005-04 To From Issue Amount -- ---- ------------ BB+/Watch Neg BBB-/Watch Neg JPY4.0 bil. Secured floating rate credit-linked notes 2006-01 To From Issue Amount -- ---- ------------ BB+/Watch Neg BBB-/Watch Neg JPY2.0 bil. Secured floating rate credit-linked notes series 2006-02 To From Issue Amount -- ---- ------------ CCC+ B/Watch Neg JPY2.0 bil. Secured floating rate credit-linked notes series 2006-03 To From Issue Amount -- ---- ------------ B+/Watch Neg BB+/Watch Neg $10.0 mil. Series 2006-05 secured floating rate credit-linked notes To From Issue Amount -- ---- ------------ B- BB/Watch Neg JPY600.0 mil. Series 2006-06 secured fixed rate credit-linked notes To From Issue Amount -- ---- ------------ CCC+ BB-/Watch Neg JPY500.0 mil. Series 2006-07 secured fixed rate credit-linked notes To From Issue Amount -- ---- ------------ CCC B-/Watch Neg JPY500.0 mil. Secured floating rate credit-linked notes series 2006-10 To From Issue Amount -- ---- ------------ CCC+ B/Watch Neg JPY300.0 mil. Secured floating rate credit-linked notes series 2006-11 To From Issue Amount -- ---- ------------ CCC- CCC+/Watch Neg JPY2.0 bil. Series 2007-01 secured floating rate credit-linked notes To From Issue Amount -- ---- ------------ CCC- CCC/Watch Neg JPY500.0 mil. Series 2007-02 secured fixed rate credit-linked notes To From Issue Amount -- ---- ------------ CCC- CCC/Watch Neg JPY1.0 bil. Silk Road Plus PLC Limited-recourse secured floating-rate credit-linked notes series 2 class B1-U To From Issue Amount -- ---- ------------ BBB- BBB+/Watch Neg $70.0 mil. Limited-recourse secured variable return combination credit-linked notes series 6 class B3-U To From Issue Amount -- ---- ------------ BBB-pNRi BBB+pNRi/Watch Neg $14.0 mil. Limited recourse secured floating rate credit-linked notes series 7 class A1-U To From Issue Amount -- ---- ------------ BBB+ A+/Watch Neg $0.1 mil. Limited recourse secured floating-rate credit-linked notes series 10 class A1-E To From Issue Amount -- ---- ------------ BBB+ A+/Watch Neg EUR10.0 mil. Series 13 limited recourse secured fixed rate credit-linked notes To From Issue Amount -- ---- ------------ BBB- BBB+/Watch Neg S$8.064 mil. Series 14 limited recourse secured fixed rate credit-linked notes To From Issue Amount -- ---- ------------ BBB- BBB+/Watch Neg S$8.5 mil. Series 15 limited recourse secured fixed-rate credit-linked notes To From Issue Amount -- ---- ------------ BBB- BBB+/Watch Neg S$8.0 mil. Series 16 limited recourse secured fixed-rate credit-linked notes To From Issue Amount -- ---- ------------ BBB- BBB+/Watch Neg S$9.0 mil. ===================== P H I L I P P I N E S ===================== ON-SITE SOURCING: March 27 Auction; Secured Lender Leads Bidding ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Virginia has approved a proposed auction for On-Site Sourcing Inc.'s assets. According to Bloomberg's Bill Rochelle, On-Site Sourcing Inc. will hold an auction on March 27, with Integreon Managed Solutions Inc. under contract. Integreon has offered a $28 million credit bid using the secured debt it purchased prior to ONSITE3's filing. On-Site will pursue the sale to Integreon, absent higher and better bids at the auction. Competing bids are due March 23. The sale hearing is on March 31. ONSITE3 disclosed its entry into an asset purchase agreement with Integreon on February 5, when it announced its Chapter 11 filing. As part of the transaction, ONSITE3 said Integreon completed the acquisition of ONSITE3's outstanding pre-bankruptcy secured debt and has agreed to provide debtor-in-possession financing to assure ONSITE3's continued operation throughout the reorganization process. ONSITE3 Expands BPO Portfolio Robert Ballou, CEO of ONSITE3, said on February 5, "Integreon's planned acquisition of ONSITE3's electronic discovery business will create an unrivaled end-to-end 'enterprise' set of litigation and compliance services for law firms and corporations under one roof. The expanded scope will include forensics and collection, proprietary E3(TM) processing and eView(TM) hosted review applications, and will be coupled with Integreon's onshore and offshore document review. "Our plan is to focus on our growing e-discovery business. We will close our declining paper discovery support operations, but preserve the continuity of our e-discovery operations around the U.S. We plan to immediately transition paper projects to other vendors, allowing us to focus on the core electronic offerings that our clients value most." Liam Brown, CEO of Integreon, said, "The comprehensive range of ONSITE3's electronic discovery services and proprietary technologies dovetail well with our document review capability and significantly increases the scale and U.S. footprint of our own EDD capabilities. "This planned transaction will result in the creation of a $40 million national electronic discovery division of Integreon with industrial-scale processing centers in Washington, D.C. and New York City, along with review centers in the U.S., India and the Philippines." About Integreon Managed Solutions Integreon Managed Solutions Inc. -- http://www.integreon.com/-- provides a range of knowledge support services to professionals, such as research and analytics, legal and financial document services, legal and discovery services, and finance and accounting services, which transform the Middle Office and allow professionals to focus their time and energy on their 'highest and best use'. Its customers include the world's leading financial services institutions, international law firms, and Global 2000 corporations. Integreon is the business-process-outsourcing unit by Philippines- based Ayala Corp. Fred Ayala serves as chairman of the board of Integreon and CEO of LiveIt Solutions, Inc., Ayala Corp.'s holding company for its investments in the BPO sector. He is also the non-executive Chairman and former CEO of eTelecare, one of the leading customer care companies in Asia. LiveIt recently acquired a significant shareholding in eTelecare. Mr. Ayala was also formerly Chairman of SPi, one of the leading non-voice BPO companies in Asia. About On-Site Sourcing Los Angeles, California-based ONSITE3 -- 1-877-433-5227 or http://www.onsite3.com/-- is widely recognized in the industry as a top provider of electronic discovery services and has been in the litigation support and legal discovery business since 1991. Its innovative approach to evidence management focuses on the need to manage both the risk and cost associated with complex litigation and regulatory compliance. The combination of its proprietary and integrated technology-enabled solutions enables law firms and corporations to achieve a greater return on their investments in evidence management. On-Site Sourcing Inc. and two affiliates filed for Chapter 11 on February 4, 2009(Bankr. E.D. Va. Lead Case No. 09-10816). In its bankruptcy petition, it estimated assets and debts of $10 million to $50 million each. Michael A. Condyles, Esq., at Kutak Rock LLP, in Richmond, Virginia, handles the case. ================= S I N G A P O R E ================= 2 BROTHERS: Creditors' Proofs of Debt Due on March 27 ----------------------------------------------------- The creditors of 2 Brothers Resources Pte. Ltd. are required to file their proofs of debt by March 27, 2009, to be included in the company's dividend distribution. The company's liquidators are: Chia Soo Hien Leow Quek Shiong c/o BDO Raffles 19 Keppel Road #02-01 Jit Poh Building Singapore 089058 INDOVER FORFAITING: Creditors' Proofs of Debt Due on March 25 ------------------------------------------------------------- The creditors of Indover Forfaiting & Trade Services Pte Ltd are required to file their proofs of debt by March 25, 2009, to be included in the company's dividend distribution. The company's liquidators are: Kon Yin Tong Wong Kian Kok Aw Eng Hai c/o 47 Hill Street #05-01 Singapore Chinese Chamber of Commerce & Industry Building Singapore 179365 JURONG HI-TECH: Placed Under Judicial Management Order ------------------------------------------------------ On February 20, 2009, the High Court of Singapore entered a judicial management order for Jurong Hi-Tech Industries Pte Ltd. The Applicant's solicitors are: Messrs. Allen & Gledhill LLP One Marina Boulevard #28-00 Singapore 018989 PETROPOOL (S) PTE: Court Enters Wind-Up Order --------------------------------------------- On February 13, 2009, the High Court of Singapore entered an order to have Petropool (S) Pte. Ltd.'s operations wound up. S. L. Development Pte. Limited filed the petition against the company. The company's liquidator is: The Official Receiver 45 Maxwell Road #05-11/#06-11 The URA Centre (East Wing) Singapore 069118 WEI INTERIOR: Court Enters Wind-Up Order ---------------------------------------- On February 20, 2009, the High Court of Singapore entered an order to have Wei Interior Pte. Ltd.'s operations wound up. HL Timber Pte Ltd filed the petition against the company. The company's liquidator is: The Official Receiver 45 Maxwell Road #05-11/#06-11 The URA Centre (East Wing) Singapore 069118 ====================== S O U T H A F R I C A ====================== DEALSTREAM: Pretoria High Court Orders Final Liquidation -------------------------------------------------------- The Pretoria High Court has ordered the final liquidation of Dealstream, MoneyWeb reports. The report says Dube Tshidi, executive officer of the Financial Services Board, had applied for the liquidation of Dealstream, which was placed under curatorship in October 2008, after evidence emerged that CEO Russell Leigh had plundered the accounts of his clients. According to the report, executive officer Tshidi noted in his motivating affidavit that Dealstream was "hopelessly insolvent". MoneyWeb relates Dealstream curator Bernard Levenstein filed his report with the High Court on February 20, 2009. According to MoneyWeb, the findings of the report are summarized by Mr. Tshidi as: -- Dealstream failed to prepare audited financial statements since its incorporation in 2004 and the available accounting records cannot be relied upon. -- There is sufficient evidence to show that there was intermingling of client funds in contravention of the Financial Intelligence Centre Act. -- Mr. Leigh used client funds to finance Dealstream's business and also to cover losses incurred in its own trading account. -- Mr. Leigh arbitrarily withdrew funds from clients' trust accounts to finance losses of other investors. -- Mr. Leigh transferred personal negative positions to other accounts. -- Dealstream's liabilities exceed its assets by about R118 million and it is insolvent with no prospect of recovery. Executive officer Tshidi noted that the liquidation would allow the liquidator to pursue claims against Leigh and other identifiable wrongdoers. Based in Melrose Arch, South Africa, Dealstream is an online stockbroker dealing primarily in single stock futures and contracts for difference (CFDs). =============== X X X X X X X X =============== * S&P Junks Ratings on 6 Tranches From 50 Asia-Pacific CDOs ----------------------------------------------------------- Standard & Poor's Ratings Services lowered 51 ratings on 50 tranches of Asia-Pacific (excluding Japan) synthetic collateralized debt obligations. The ratings on two other CDOs were raised and removed from CreditWatch with positive implications. At the same time, 23 ratings of the downgraded CDO tranches were kept on CreditWatch negative and 28 ratings of the downgraded CDO tranches were removed from CreditWatch negative. The downgrades reflect the increased credit risk of underlying portfolios in the respective transactions. The synthetic rated overcollateralization levels for tranches that have been downgraded fell below 100% at their current rating levels during the SROC analysis for the month of February. This indicates that the available credit enhancement for each of the tranches is lower than the level required to maintain its current rating. Where the SROC is less than 100%, scenarios that project the current portfolio 90 days into the future are run, assuming no asset rating migration. Where this projection indicates that the SROC would return to a level above 100%, the rating is maintained, but placed on CreditWatch negative. If the projection indicates that the SROC would remain below 100%, the rating is immediately lowered. The synthetic rated overcollateralization levels for the ratings that were raised rose above 100% at a higher rating level, indicating positive rating migration within the reference portfolio. Related Research This article is based in part on these criteria articles: -- CDO Spotlight: Synthetic ROC and the Surveillance of Synthetic CDOs, published on March 15, 2004 -- Refinements To Standard & Poor's Synthetic CDOs CreditWatch And Upgrade Policy, published on Sept. 15, 2006 The rating actions taken on the affected transactions are: Australian And New Zealand Cdo Deals Deal Name Rating To Rating From --------- --------- ----------- Echo Funding Pty Ltd. Series 18 BB-/Watch Neg BBB-/Watch Neg Echo Funding Pty Ltd. Series 19 CCC+/Watch Neg B+/Watch Neg Echo Funding Pty Ltd. Series 20 CCC+ BB-/Watch Neg Echo Funding Pty Ltd. Series 21 B+/Watch Neg BB+/Watch Neg Mahogany Capital Ltd. Series II B-pNRi/Watch Neg BpNRi/Watch Neg Obelisk Trust 2005-1 BBB+/Watch Neg A/Watch Neg Obelisk Trust 2006-1 Eden CCC CCC+/Watch Neg Obelisk Trust 2006-2 Eden CCC+ B/Watch Neg Obelisk Trust 2006-3 Eden CCC+ B/Watch Neg SELECT ACCESS Investments Ltd. Series 2005-2 BB BB+/Watch Neg SELECT ACCESS New Zealand Ltd. Series 2004-3 AA/Watch Neg AA+/Watch Neg NRi�Interest is not rated. p--principal Asian (Excluding Japan) Deals Deal Name Rating To Rating From --------- --------- ----------- Aphex Pacific Capital Ltd. Series 5 DESIGN 2006 BB-/Watch Neg BB/Watch Neg ARLO IX Ltd. 2007 (Pascal SCO A-1) BB+ BBB-/Watch Neg Athenee CDO PLC Series 2007-11 BBB+ A+/Watch Neg Athenee CDO PLC Series 2007-12 BBB A-/Watch Neg Athenee CDO PLC Series 2007-14 BBB/Watch Neg A-/Watch Neg Athenee CDO PLC Series 2007-15 BBB+ AA-/Watch Neg Athenee CDO PLC Series 2007-2 BBB+ A+/Watch Neg Athenee CDO PLC Series 2007-3 BBB+ A+/Watch Neg Athenee CDO PLC Series 2007-4 BBB/Watch Neg A-/Watch Neg Athenee CDO PLC Series 2007-5 BBB A-/Watch Neg Athenee CDO PLC Series 2007-6 BBB/Watch Neg A-/Watch Neg Athenee CDO PLC Series 2007-7 BBB/Watch Neg A-/Watch Neg Athenee CDO PLC Series 2007-8 BBB+ A+/Watch Neg Athenee CDO PLC Series 2007-9 BBB+ A+/Watch Neg Beryl Finance Ltd. Series 2007-13 CCC-pNRi/Watch Neg CCC+pNRi/Watch Neg Beryl Finance Ltd. Series 2008-4 ApNRi/Watch Neg AApNRi/Watch Neg Castle Finance I Ltd. Series 1 BBB- BBB/Watch Neg Corsair (Cayman Islands) 4 Ltd. Series 5 CCC- CCC/Watch Neg Corsair (Jersey) No. 2 Ltd. Series 72 B- BB-/Watch Neg Corsair (Jersey) No. 2 Ltd. Series 89 CCC CCC+/Watch Neg Corsair (Jersey) No. 2 Ltd. Series 91 CCC CCC+/Watch Neg Diadem City CDO Ltd. Series 2008-3 CCC-pNRi/Watch Neg CCC+pNRi/Watch Neg Dragon A (CDS BNP) BBB+srp/Watch Neg A-srp/Watch Neg Dragon AA (CDS BNP) AA-srp/Watch Neg AA+srp/Watch Neg Eirles Two Ltd. Series 241 B+/Watch Neg BB/Watch Neg Eirles Two Ltd Series 148 AA-/Watch Neg AA/Watch Neg Hercules Global CDO I Trust BBB BB/Watch Pos Magnolia Finance I PLC Series 2006-21 B+/Watch Neg BB+/Watch Neg Magnolia Finance I PLC Series 2006-22 B+/Watch Neg BB+/Watch Neg Morgan Stanley ACES SPC 2007-29 BB BBB-/Watch Neg Morgan Stanley ACES SPC 2007-38 Class I BBB- BBB/Watch Neg Morgan Stanley ACES SPC 2007-9 Class III (Interest) CCC+i/Watch Neg B-i/Watch Neg Morgan Stanley ACES SPC 2007-9 Class III (Principal) Bp BBp/Watch Neg Morgan Stanley Managed ACES SPC Series 2006-12 Class IA CCC+ B/Watch Neg Morgan Stanley Managed ACES SPC Series 2006-12 Class IIIA CCC- CCC/Watch Neg Morgan Stanley Managed ACES SPC Series 2006-7 Class IA B/Watch Neg B+/Watch Neg Morgan Stanley Managed ACES SPC Series 2006-7 Class IIA CCC CCC+/Watch Neg Salisbury International Investments Ltd. Series 2006-18 CCC- CCC/Watch Neg Saphir Finance PLC Series 2006-5 B-pNRi/Watch Neg BpNRi/Watch Neg Sceptre Capital B.V. Series 2007-2 B BB-/Watch Neg Sceptre Capital B.V. Series 2005-3 BBB+ BBB-/Watch Pos STARTS (Cayman) Ltd. Series 2007-35 CCC+ B/Watch Neg NRi � Interest is not rated. P � principal. Srp � swap risk rating. ********* 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 ***