/raid1/www/Hosts/bankrupt/TCRAP_Public/090309.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 9, 2009, Vol. 12, No. 47
Headlines
A U S T R A L I A
MIRABELA NICKEL: Discloses Potential Shortfall in Funding
ONLINE SUPER: ASIC Winds Up Associated Companies
OPES PRIME: ASIC Unveils Proposed Settlement for Investors
RESORT CORP: Owes AU$300 Million to Bankers and Creditors
C H I N A
CHINA PROPERTIES: Moody's Junks Corporate Family Rating to 'B2'
CITIC BANK: Banco Bilbao May Raise Stake in Bank
XINJIANG SECURITIES: Urumqi Court Declares Firm Bankrupt
H O N G K O N G
APPSTREET TECHNOLOGIES: Creditors' Meeting Set for March 13
CORAL HOLDINGS: Creditors' Proofs of Debt Due on March 27
DBS ASIA: Placed Under Voluntary Wind-Up
JE FULFILMENT: Creditors' Proofs of Debt Due on April 6
KINSION UNITED: Creditors' Proofs of Debt Due on April 7
LIONSTAR LIMITED: Member to Hear Wind-Up Report on April 8
MAY & KAY: Creditors' Proofs of Debt Due on April 6
METRON LIMITED: Creditors' Proofs of Debt Due on April 17
PACKEN LIMITED: Placed Under Members' Voluntary Liquidation
PEARFORD INVESTMENT: Creditors' Proofs of Debt Due on April 6
RUSTIC GARDEN: Creditors' Proofs of Debt Due on March 23
SENATOR LINES: Creditors' Proofs of Debt Due on March 23
STAR OCEAN: Commences Wind-Up Proceedings
WORLD SHINE: Creditors' Proofs of Debt Due on April 24
YUANMINGYUAN SOCIETY: Creditors' Proofs of Debt Due on March 25
I N D I A
ADHUNIK ISPAT: Fitch Assigns National Long-Term Rating at 'BB+'
MAYTAS INFRA: Gov't. Appoints Two New Directors
SATYAM COMPUTER: Obtains SEBI Approval for 51% Stake Sale
TATA MOTORS: Moody's Downgrades Corporate Family Rating to 'B3'
I N D O N E S I A
MEDCO: Mulls on Selling Bonds, Seeks Bank Loans to Pay Debts
J A P A N
CABS LIMITED: Moody's Upgrades Ratings on Series 2005-1 Notes
EXCELLENT COLLABORATION: Moody's Downgrades Ratings on Three Bonds
PREMIER ASSET: Capmark Downgrade Cues Fitch's Servicer Rating Cut
SANYO ELECTRIC: Panasonic Begins Marketing of JPY400 Bln Bonds
M A L A Y S I A
EKRAN BERHAD: Posts MYR4.01 Mil. Net Loss in Qtr. Ended Dec. 31
IDAMAN UNGGUL: Bourse Extends Plan Filing Period to May 29
LIQUA HEALTH: Incurs MYR5.67 Mln. Net Loss in Qtr. Ended Dec. 31
PILECON: Posts MYR5.17 Mln. Net Loss in Qtr. Ended Dec. 31
WWE HOLDINGS: To Hold 20th Annual Meeting on March 25
N I G E R I A
ECOBANK TRANSNATIONAL: Fitch Comments on Rating Downgrade to 'B'
P H I L I P P I N E S
SAN MIGUEL: S&P Cuts Foreign Currency Corporate Rating to 'BB-'
S O U T H A F R I C A
PAMODZI GOLD: Waits on Loan to Pay Wages, Workers on Strike
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A U S T R A L I A
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MIRABELA NICKEL: Discloses Potential Shortfall in Funding
---------------------------------------------------------
Mirabela Nickel Limited said there was significant risk to the
continuation of the business because of a potential shortfall in
funding and uncertainty surrounding the success of a planned
equity raising, the Australian reports.
The Australian relates that the company is seeking to raise US$290
million through a senior loan and equity financing to fund current
obligations and complete the Santa Rita nickel project in Brazil.
"It is estimated by the Directors that US$290 million (A$422.8
million) is required to satisfy repayment of the bridge financing
loan, fund completion and commissioning of the Santa Rita Project
and meet working capital obligations,” Mirabela said in a
statement.
The company said it received commitments from each of the lenders,
Barclays, Credit Suisse, WestLB AG and Caterpillar Financial SARL
for a non revolving loan of US$150 million ("Commitment
Agreement”) and a possible additional loan by Bayerische Hypo-und
Vereinsbank AG for US$40 million under the same facility.
The Commitment Agreement is the precursor to a revised senior
secured loan between the lenders and the company. The conditions
precedent to the execution of a revised senior secured loan
include standard items together with the ability of the lenders to
cancel the Commitment Agreement should an adverse material event
impact the company and the requirement that the Company raise not
less than US$133 million (or US$95 million if HVB becomes a party
to the Commitment Agreement) from an issue of equity securities
with funds to be available to the company by no later than
March 31, 2009.
The Directors have a reasonable expectation that the combined
US$290 million senior loan and equity financing will be
successful and thereby allow the company to fund settlement of
current obligations and complete the Santa Rita Project.
However, as a result of the material uncertainty surrounding the
successful raising of sufficient equity, together with the
material uncertainties as to satisfaction of the conditions
attached to the entering of a revised senior secured loan
facility, there is significant doubt about the consolidated
entity’s ability to continue as a going concern and therefore
whether it will realize its assets and extinguish its liabilities
in the normal course of business.
Mirabela Nickel reported a net loss of AU$48.42 million for the
six months to December 31, from a profit of AU$9.75 million a year
ago.
At December 31, 2008 the company had a net working capital deficit
of AU$55.43 million consisting of cash of AU$13.05 million and
trade receivables of AU$1.42 million, less trade and other
payables of AU$69.91 million.
In addition, the company has current obligations under hedge
arrangements, tax and employee provisions and a bridge financing
loan of AU$180.82 million.
The company said it has interest bearing liabilities relating to
the Votorantim Offtake Prepayment and the Norilsk Offtake loan, in
each case for the construction of the Santa Rita Project,
amounting to AU$120.97 million (BRL 78.7 million and US$50.0
million respectively). These liabilities are subordinated in
security to the lenders of the bridge financing loan.
The company will convene a meeting of shareholders on March 19,
2009, to approve the issue of up to 120 million shares pursuant to
the proposed equity issue at a price of not less than 80% of a
volume weighted average market price, together with the approval
of past equity issues enabling the company to issue further
securities if required.
Mirabela Nickel Limited (ASX:MBN) -- http://www.mirabela.com.au/
-- is engaged in mineral exploration and development in Brazil.
The principal activity of the company during the fiscal year ended
June 30, 2008, consisted of the development of the Santa Rita
nickel sulfide project. The company’s other projects include
Serra Azul nickel saprolite resource, Palestina nickel sulfide
exploration and Sao Francisco nickel sulfide exploration. Serra
Azul is a nickel laterite resource with a high grade nickel
component (saprolite). Sao Francisco is an exploration project
that has identified the presence of nickel and copper sulfides,
about 400 kilometers north of Santa Rita in the State of Sergipe.
ONLINE SUPER: ASIC Winds Up Associated Companies
------------------------------------------------
The Supreme Court of New South Wales has wound up a number of
companies promoted by Online Super Pty Ltd (Online Super)
following an application by the Australian Securities &
Investments Commission (ASIC).
In a press statement, ASIC disclosed that the commission brought
its application following an investigation which raised concerns
that Mt Whitsunday Pty Ltd, Maxpower Mortgage Services Pty Ltd and
Maxwell Phillip Enterprises Pty Ltd:
* were insolvent;
* misapplied funds raised from investors;
* did not keep proper records; and
* operated unregistered managed investments schemes.
The application to wind up an additional company in the group, 115
Constitution Road Pty Ltd, was adjourned for 14 days following the
appointment of an administrator to the company on February 27,
2009.
ASIC alleged that between December 2002 and September 2005 the
four companies raised in the order of AU$9.5 million from
approximately 150 investors who were offered returns of up to 80
per cent per annum. The majority of these investors were
operating self managed superannuation funds and were introduced to
the companies during investment seminars held by Online Super
between 2002 and 2005.
OPES PRIME: ASIC Unveils Proposed Settlement for Investors
----------------------------------------------------------
The Australian Securities and Investments Commission (ASIC) has
unveiled proposed settlement for Opes Prime investors.
In a statement released Friday, March 6, ASIC said that it would
provide the necessary releases to allow a settlement offer to be
put to Opes Prime investors, which is expected to deliver a sum of
AU$253 million and a return of around 40 cents in the dollar to
creditors of Opes Prime, which includes investors.
The return is based on the value of potential creditors claims as
at March 27, 2008, when Opes Prime went into administration, ASIC
said in a statement.
This settlement offer is subject to both the approval by Opes
Prime creditors and court approval of a creditors scheme of
arrangement giving effect to the offer.
The proposed settlement follows mediation between ASIC, the ANZ
Banking Group Ltd, Merrill Lynch (International) Australia Pty Ltd
and the liquidator of Opes Prime Stockbroking Limited.
ASIC said major objective in encouraging the mediation was to
recover compensation for investors without the need for costly
litigation and multiple actions.
Under the terms of the mediated settlement, ASIC has agreed, if
the offer is approved by Opes Prime creditors and the Court, not
to pursue these actions against ANZ and Merrill Lynch, who are
parties to the settlement offer.
ASIC Releases Granted Under
Proposed Settlement Agreement
As part of the settlement process, ASIC was requested, and has
agreed:
-- to release ANZ from potential claims arising from
both the managed investment scheme and s181
investigations; and
-- to release Merrill Lynch from the potential claim
arising from the managed investment investigation.
ASIC’s agreement to release ANZ and Merrill Lynch is subject to
ASIC being satisfied with the content of the scheme documentation
which will give effect to the proposed settlement, the proposed
settlement being accepted by the Opes Prime creditors at a scheme
meeting and approval of the scheme by the Court.
Tony D'Aloisio, Chairman of ASIC, said that in litigation of this
nature, there are significant risks and costs for all sides.
'Weighing up the benefits of litigation against those risks, ASIC
believes that a compromise settlement which is acceptable to Opes
Prime creditors and approved by the Court makes commercial sense
and hence ASIC will provide the necessary releases to allow the
settlement to move forward and be considered by creditors and the
Court,' he said.
ANZ and Merrill Lynch have agreed to the terms of the releases to
be provided by ASIC but have made no admissions in respect to
ASIC's concerns.
ASIC acknowledges the co-operation of ANZ and Merrill Lynch
throughout its investigations and the mediation process.
‘In the event that creditors or the Court do not approve the
settlement, the releases do not apply and ASIC will reassess its
position and weigh up public interest and other considerations to
determine if it will commence any civil proceedings', Mr D’Aloisio
said.
Enforceable Undertaking
ASIC also announced that it has put in place an Enforceable
Undertaking (EU) from the ANZ in relation to ASIC's investigation
into ANZ Custodial Services, a division of the ANZ Group.
The EU will require ANZ to complete a program to remedy
deficiencies in operational procedures across the ANZ Custodian
Services business, including its securities lending operations.
The program will be thoroughly reviewed by an expert who will
regularly report to ASIC over the next year.
ANZ has agreed to improve compliance in various areas addressed in
the EU, including to review, and where necessary, remedy:
* poor reconciliation processes;
* a breakdown in proper compliance processes;
* inadequate resourcing and risk management;
* inaccurate and delayed responses to beneficial tracing
notices; and
* a poor compliance culture, meaning that deficiencies
in processes were not identified, escalated or remedied
in an appropriate or timely manner.
In addition, the EU sets out ASIC's concerns that ANZ:
* failed to account for interests in securities acquired
in the course of its securities lending business for
the purpose of making substantial shareholding
notifications; and
* failed to report any of these areas of concern to
ASIC on a timely basis.
ANZ does not concede that these particular concerns give rise to a
contravention of any law or obligation by ANZ.
ASIC considered that the deficiencies impacted on ANZ’s ability to
meet its obligations as an Australian financial services licensee
under the Act. ANZ Nominees Limited, a wholly owned subsidiary
and authorised representative of ANZ that holds assets on behalf
of ANZ and its clients, is also a party to the EU.
In the event that ANZ fails to comply with the requirements of the
EU or the expert determines that ANZ has failed to complete the
remediation program, and such failures are significant, ASIC will
assess whether it should take action to vary the conditions of
ANZ’s AFSL.
ANZ Custodian Services provides custodial and asset services to
ANZ’s clients and conducts settlements and trade processing,
investment accounting and securities lending. ANZ’s securities
lending business has been the subject of significant scrutiny in
the aftermath of the collapse of Opes Prime.
About Opes Prime
Opes Prime Group Ltd is an Australian unlisted public company
providing a range of financial services and products for high
net worth individuals, stockbrokers and financial advisors,
asset managers, banks and other firms, both for themselves and
their clients. The Group conducts business via a number of
operating subsidiaries based in Melbourne, Sydney and Singapore:
1) Opes Prime Stockbroking Limited is a full Market
Participant of the Australian Stock Exchange Ltd, and
holds an Australian Financial Services Licence (#247408)
which enables it to deal and advise in financial
services and products to retail and wholesale clients. The
company was first registered on 10 March 1999, and started
business with its current shareholders in 2005. Opes
Prime Stockbroking is a specialist provider of
securities lending and equity financing services. In
Singapore, the firm operates through Opes Prime Group's
wholly owned subsidiary, Opes Prime International Pte Ltd.
In Australia, Opes Prime Stockbroking has granted
Authorized Representative status to Trader Dealer Pty Ltd,
an on-line non-advisory trading execution service for the
semi-professional and professional trader.
2) Opes Prime Structured Products Pty Ltd develops, manages
and markets specialized leveraged products for the high
net worth market, providing outstanding risk protection
and return potential.
3) Opes Prime Paradigm Pty Ltd, is a corporate finance and
advisory firm specializing in small and mid cap stocks.
4) In Singapore, Opes Prime Asset Management Pte Ltd provides
specialist hedge fund incubation, advisory and trade
management services, and Five Pillars Associates Pte Ltd
provides Islamic finance consultancy.
* * *
The Troubled Company Reporter-Asia Pacific reported on April 1,
2008, that Opes Prime was placed under receivership after
directors became aware of a number of cash and stock movement
irregularities in relation to a small number of accounts.
Ferrier Hodgson Partners John Lindholm, Peter McCluskey and
Adrian Brown have been appointed Administrators by the directors
of Opes Prime Group Limited and a number of its subsidiaries and
related entities including, Opes Prime Stockbroking Limited.
Initial investigations indicate that the solvency of the
business was under pressure due to a number of major clients not
meeting significant margin calls. The Administrators are
currently examining the Group's affairs to quantify the likely
liability to OPSL's clients.
At the same time, Sal Algeri and Chris Campbell from the
Deloitte Corporate Reorganisation Group were appointed by a
secured creditor, ANZ Banking Group Ltd., as Receivers and
Managers of Opes Prime Group Ltd, Opes Prime Stockbroking Ltd,
Leveraged Capital Pty Ltd and Hawkswood Investments Pty Ltd.
The TCR-AP reported on October 17, 2008, that Opes Prime's
creditors voted on Tuesday, October 15, to liquidate the company.
According to the Australian Associated Press, the decision of the
creditors will allow the liquidator to pursue claims against Opes
Prime's secured creditors -- ANZ Bank and Merrill Lynch -- that
were not available to the administrator.
The AAP related that about 1,200 Opes clients lost shares they had
placed with Opes in return for margin loans, when the major
secured creditors of Opes -- ANZ, Merrill Lynch, Dresdner
Kleinwort -- began selling a pool of nearly AU$1.6 billion in
shares soon after the Opes collapse, in a bid to recover money
owed to them by Opes.
Opes Prime owed clients about AU$585 million at the time of the
collapse, but due to fluctuations in the share market that figure
had fallen to about AU$400 million on September 22, the AAP noted
citing Ferrier Hodgson.
RESORT CORP: Owes AU$300 Million to Bankers and Creditors
---------------------------------------------------------
Resort Corp owes about AU$300 million to its bankers and
creditors, The Australian News reports.
According to the report, the company was hit by the financial
crises but has the assets to cover its debts.
A group of 14 Resort Corp companies had sought voluntary
administration last Monday, the report said, citing Administrator
David Clout of David Clout & Associates.
The report relates the company's projects expected to be axed
include:
-- the AU$500 million Saltwater resort, the residential and
retail precinct that Resort Corp planned to build next to
the Jupiters Casino and Convention Centre in Townsville; and
-- AU$500 million integrated resort on former farmland at
Funnell Bay near Airlie Beach.
"The directors plan to apply for a Part 10 arrangement, which
means that they hope to sell every asset that the company has for
the benefit of its creditors,” Andrew Robinson, the solicitor from
Robinson Legal in Sydney representing the company's directors, was
quoted by Tweed Daily News as saying.
Australia based Resort Corp -- http://www.resortcorp.com.au/--
was established in 2001. The company is involved in luxury
beachside lifestyle developments.
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C H I N A
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CHINA PROPERTIES: Moody's Junks Corporate Family Rating to 'B2'
---------------------------------------------------------------
Moody's Investors Service has downgraded to Caa1 from B2 the
corporate family and senior unsecured bond ratings of China
Properties Group Limited. The outlook on the ratings is negative.
"The rating action has been driven by Moody's concern that China
Properties' has yet to confirm its refinancing plan for the
RMB520 million bilateral bank loan which will fall due before the
end of March," says Peter Choy, a Moody's Vice President & Senior
Credit Officer.
"This has greatly heightened the company's liquidity risk which
has already been adversely affected by its weaker-than-expected
property pre-sales and accelerating land premium payments in
2008," says Choy, also Moody's lead analyst for the company.
The rating downgrade has also been driven by concerns over China
Properties' very limited ability to secure sufficient bank
facilities, both onshore and offshore, to support its development
activities.
"As a result, Moody's see slow construction progress on its
already concentrated projects in Shanghai and Chongqing, and which
will likely impair its pre-sales performance," adds Choy.
While Moody's expects the company may be able to seek a temporary
extension of the upcoming matured bank loan, its liquidity profile
will remain weak. It remains a challenge for it to generate
adequate cash flow from its projects or to arrange sufficient bank
funding to meet its ongoing payment obligations amid a tough
property market and economic downturn.
The negative outlook reflects Moody's concern over China
Properties' tight liquidity position and weak operating profile in
the context of challenging property market conditions.
Further downward rating pressure could emerge if the company fails
to refinance the bank loan and defaults on its debt obligations.
The last rating action with regard to China Properties was taken
on 9 February, 2009, when the company's ratings were placed under
review for possible downgrade.
Incorporated in Grand Cayman, China Properties Group Limited was
listed on the Hong Kong Stock Exchange in February 2007, and is
engaged in property investment and development in China.
CITIC BANK: Banco Bilbao May Raise Stake in Bank
------------------------------------------------
Banco Bilbao Vizcaya Argentaria SA (BBVA), Spain's second largest
bank, is eager to raise its stake in CITIC Bank, China Daily
reports citing Kong Dan, the chairman of parent CITIC Group.
According to the report, Chairman Kong said China CITIC Bank and
BBVA executives signed an agreement earlier this year to extend
their cooperation to include auto financing and private banking.
In 2008, China Daily recalls, BBVA agreed to raise its stake in
CITIC International Financial Holding to about 30 percent, and its
holding in CITIC Bank from 4.83 percent to 10.07 percent. BBVA,
the report notes, was also given the option to buy another 5
percent in the bank.
Mr. Kong also said there were no plans to inject capital into
CITIC Pacific beyond the $1.5 billion rescue package already
promised, the report relates.
CITIC Bank Co Ltd, formerly China CITIC Bank, is a wholly owned
subsidiary of the state conglomerate Citic Group (S&P: BB+ long-
term and B short-term foreign currency counterparty credit
rating). With 41 branches, CITIC Bank had total assets of
CNY689.5 billion at the end of September 2006.
* * *
As of March 6, 2009, China CITIC Bank continues to carry Moody's
'D' bank financial strength rating.
XINJIANG SECURITIES: Urumqi Court Declares Firm Bankrupt
--------------------------------------------------------
Xinjiang Securities Co has been declared bankrupt by a court in
Urumqi, China Daily reports.
The order, the report says, came after its chairman and five other
senior executives were convicted of embezzlement.
According to the report, the court found Gao Hu, Xinjiang
Securities' chairman, and other five executives illegally accepted
about CNY18.2 billion of deposit between 1997 and 2005 from the
public.
Xinjiang Securities filed a bankruptcy petition in August 2007
after China's securities regulator withdrawn its business license
in November 2006. As of Feb. 21, 2008, the company's liabilities
amounted to CNY1.69 billion against assets of CNY423 million,
China Daily says citing court documents.
Xinjiang Securities Co is one of the oldest and largest stock
brokerages in China's western regions, according to China Daily.
================
H O N G K O N G
================
APPSTREET TECHNOLOGIES: Creditors' Meeting Set for March 13
-----------------------------------------------------------
The creditors of Appstreet Technologies Limited will hold their
meeting on March 13, 2009, at 11:00 a.m., for the purposes
mentioned in Sections 241, 242, 243, 244, 255A and 283 of the
Companies Ordinance.
The meeting, will be held at the 7th Floor of Sunning Plaza, 10
Hysan Avenue, in Causeway Bay, Hong Kong.
CORAL HOLDINGS: Creditors' Proofs of Debt Due on March 27
---------------------------------------------------------
The creditors of Coral Holdings Limited are required to file their
proofs of debt by March 27, 2009, to be included in the company's
dividend distribution.
The company's liquidator is:
J R Lees
1904 Hong Kong Club Building
3A Chater Road, Central
Hong Kong
DBS ASIA: Placed Under Voluntary Wind-Up
----------------------------------------
On February 28, 2009, a special resolution was passed that
voluntarily wind up the operations of DBS Asia Limited.
The company's liquidators are:
Rainier Hok Chung Lam
John James Toohey
Prince's Building, 22nd Floor
Central, Hong Kong
JE FULFILMENT: Creditors' Proofs of Debt Due on April 6
-------------------------------------------------------
The creditors of JE Fulfilment Limited are required to file their
proofs of debt by April 6, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 27, 2009.
The company's liquidator is:
Christopher John Hasson
12 Science Park East Avenue
Hong Kong Science Park, 6th Floor
Shatin, New Territories
Hong Kong
KINSION UNITED: Creditors' Proofs of Debt Due on April 7
--------------------------------------------------------
The creditors of Kinsion United Enterprises Limited are required
to file their proofs of debt by April 7, 2009, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on March 2, 2009.
The company's liquidator is:
Li Wai Chi Franky
Champion Building, Room 1213
301-309 Nathan Road
Jordan, Kowloon
LIONSTAR LIMITED: Member to Hear Wind-Up Report on April 8
----------------------------------------------------------
The member of Lionstar Limited will hear the liquidator's report
on the company's wind-up proceedings and property disposal on
April 8, 2009, at 9:30 a.m.
The meeting will be held at the 35th Floor of One Pacific Place,
in 88 Queensway, Hong Kong.
MAY & KAY: Creditors' Proofs of Debt Due on April 6
---------------------------------------------------
The creditors of May & Kay Investment Company Limited are required
to file their proofs of debt by April 6, 2009, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 23, 2009.
The company's liquidator is:
Yeh King Yeung Albrecht Carl
Wing Hang Finance Centre, 23rd Floor
60 Gloucester Road
Wanchai, Hong Kong
METRON LIMITED: Creditors' Proofs of Debt Due on April 17
---------------------------------------------------------
The creditors of Metron Limited are required to file their proofs
of debt by April 17, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 23, 2009.
The company's liquidator is:
Mak Kay Lung, Dantes
China Insurance Group Building, Rooms 2101-3
141 Des Voeux Road
Central, Hong Kong
PACKEN LIMITED: Placed Under Members' Voluntary Liquidation
-----------------------------------------------------------
At an extraordinary general meeting held on February 26, 2009, the
members of Packen Limited resolved to voluntarily liquidate the
company's business.
The company's liquidator is:
Ng Kwok Cheung, Bernard
Empire Land Commercial Centre
Flat B, 16th Floor
81-85 Lockhart Road
Wanchai, Hong Kong
PEARFORD INVESTMENT: Creditors' Proofs of Debt Due on April 6
-------------------------------------------------------------
The creditors of Pearford Investment Company Limited are required
to file their proofs of debt by April 6, 2009, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 23, 2009.
The company's liquidator is:
Yeh King Yeung Albrecht Carl
Wing Hang Finance Centre, 23rd Floor
60 Gloucester Road
Wanchai, Hong Kong
RUSTIC GARDEN: Creditors' Proofs of Debt Due on March 23
--------------------------------------------------------
The creditors of Rustic Garden Limited are required to file their
proofs of debt by March 23, 2009, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 26, 2009.
The company's liquidator is:
Wong Wai Pui Ricky
Ngan Lin Chun Esther
1902 MassMutual Tower
38 Gloucester Road
Wanchai, Hong Kong
SENATOR LINES: Creditors' Proofs of Debt Due on March 23
--------------------------------------------------------
The creditors of Senator Lines (Asia) Limited are required to file
their proofs of debt by March 23, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Feb. 25, 2009.
The company's liquidators are:
Kan Shun Ming
Ngan Lin Chun Esther
1902 MassMutual Tower
38 Gloucester Road
Wanchai, Hong Kong
STAR OCEAN: Commences Wind-Up Proceedings
-----------------------------------------
On February 27, 2009, the members of Star Ocean Limited passed a
resolution that voluntarily wind up the company's operations.
The company's liquidator is:
Lau Hin Chi
Cameron Commercial Centre, 19th Floor
468 Hennessy Road
Causeway Bay
Hong Kong
WORLD SHINE: Creditors' Proofs of Debt Due on April 24
------------------------------------------------------
The creditors of World Shine Enterprises Limited are required to
file their proofs of debt by April 24, 2009, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Feb. 17, 2009.
The company's liquidator is:
Tseng Yip Sun
Kingsford Industrial Centre
Unit 2, 8th Floor
No. 13 Wang Hoi Road, Kowloon Bay
Kowloon, Hong Kong
YUANMINGYUAN SOCIETY: Creditors' Proofs of Debt Due on March 25
---------------------------------------------------------------
The creditors of Yuanmingyuan Society of China Foundation Limited
are required to file their proofs of debt by March 25, 2009, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 24, 2009.
The company's liquidator is:
Shiu Suk Yin
Sunbeam Commercial Building, 18th Floor
469-471 Nathan Road
Kowloon, Hong Kong
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I N D I A
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ADHUNIK ISPAT: Fitch Assigns National Long-Term Rating at 'BB+'
----------------------------------------------------------------
Fitch Ratings has assigned India's Adhunik Ispat Limited a
National Long-term rating of 'BB+(ind)'. The Outlook is Stable.
Fitch has also assigned these ratings to AIL's bank loans:
-- Outstanding long-term loans aggregating INR74.84 million:
'BB+(ind)';
-- Sanctioned non-fund based limits aggregating INR339 million:
National Short-term rating of 'F4(ind)'; and
-- Cash Credit Limits aggregating INR450m: National Long-term
rating of 'BB+(ind)'.
The ratings reflect AIL's position as a value-added manufacturer
that caters primarily to the construction sector, the easy
availability of raw materials from its group companies, and the
established presence of the group in the eastern region of India.
The rating recognizes the increasing integration among the group
entities leading to improvement in market position and also draws
strength from location advantage in terms of proximity to ports,
railways and roads for transportation of raw materials and
finished goods.
AIL's ratings are moderated by relatively low margins, compared to
peers, along with raw material price volatility risks due to the
absence of captive backward integration and lack of long term
price agreement with any of its suppliers. The company has
consistently generated negative free cash flow on account of its
capex plans which exposes it to significant liquidity risks.
Revenues for FY08 was INR3472 million (FY07: INR2561.9m) with a
growth of 35% in the topline and a net income of INR80.3 million
in FY08 (FY07: INR51.2 million). The net margins increased
marginally to 2.3% in FY08 from 2% in FY07. The EBITDA margins
were consistent around 5% for the last two years.
Fitch notes that a favorable demand for steel products along with
sustained improvement in operating margins and low financial
leverage below 3.0x can be a reason for an upgrade. Any major
debt-funded capex deteriorating financial leverage above 4.0x can
be a reason for a downgrade trigger.
The total debt of the company in FY08 was INR574.7 million. The
debt-equity ratio stood at 2.53x in FY08 compared to 1.67x in
FY07. AIL's higher working capital requirement resulting from an
increase in scale of operations to 67.8% in FY08 from 55.7% in
FY07 was supported by 90%-95% utilization of its fund based limits
of INR450 million. The debt protection measures indicated by
total adjusted debt/operating EBITDA improved marginally to 3.1x
in FY08 from 3.7x in FY07 and total adjusted debt/total adjusted
capitalization was 57.7% in FY08.
AIL is in the business of manufacturing TMT Bars and wire rods
with an installed capacity of 132,000 MTPA. The company has a
single unit with its facilities located in West Bengal. The
finished products cater the real estate, construction and
engineering sectors and its demand is driven by the performance of
these sectors.
MAYTAS INFRA: Gov't. Appoints Two New Directors
-----------------------------------------------
The government has appointed two new directors on the board of
Maytas Infra Ltd, a firm promoted by the kin of Satyam Computer B.
Ramalinga Raju, the Financial Express reports.
According to the report, the two government-appointed directors
are former ICAI President Ved Jain and tax lawyer O P Vaish.
Mr. Jain has also been appointed director on the board of Maytas
Properties, another company promoted by the Raju family.
"Two other directors including chairman of Maytas Infra will be
appointed later," the report quoted Corporate Affairs Minister
Prem Chand Gupta as saying.
The Company Law Board (CLB), the report recalls, earlier allowed
the government to appoint four directors on the board of Maytas
Infra and one on the board of Maytas Properties.
As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 20, 2009, the Financial Express said the government has
called on the CLB to supercede the present boards of Maytas
Infra Ltd and Maytas Properties Ltd.
"In order to prevent further acts of fraud against the said
companies (two Maytas companies) and to safeguard operations of
these companies in public interest, the government has moved the
CLB to remove the existing directors of these companies," the
Financial Express quoted Corporate Affairs Minister Prem Chand
Gupta as saying.
The Minister, as cited by the Financial Express, said the
government also requested CLB to restrain all the current
directors of these companies from disposing properties and bar
them from becoming directors in any other company.
The Hindu Busines Line related the application to the CLB was
based on the information given by the Serious Fraud Investigation
Office (SFIO), which showed that the present management of the two
companies had worked with fraudulent intent, breached
stakeholders' trust, persistently neglected its obligations and
functions 'to the serious detriment of the business and operations
of these two companies and stakeholders'.
According to the Hindu Business Line, the board of Maytas Infra
comprises Dr. R. P. Raju (Independent director), Mr. B. Teja Raju
(Vice- Chairman and son of Mr B. Ramalinga Raju), and Mr. B.
Narasimha Rao (who was inducted on January 30, 2009).
Receivership Application
As reported in the TCR-AP on Feb. 18, 2009, India Infoline, citing
a report, said the Bombay High Court has rejected an application
made by IDBI Bank and ICICI Bank seeking appointment of a court
receiver to oversee the administration of Maytas Infra Limited.
According to Infoline, Maytas is carrying out 62 infrastructure
projects and has Rs40.45 billion debt outstanding, in term loans
and working capital facilities from various banks.
Infoline said Maytas's financial health and its ability to
complete the ongoing projects is crucial for the banks.
On February 9, Infoline said a High Court judge had refused to
grant ad-interim relief sought by the two banks.
About Maytas Infra
Maytas Infra Limited -- http://www.maytasinfra.com/-- is an
India-based construction and infrastructure developer. The
Company is primarily engaged in the business of construction of
roads, irrigation projects, buildings, industrial structures, oil
and gas infrastructure, railway infrastructure, power transmission
and distribution lines, including rural electrification, power
plants, and development of airports and seaports. The Company's
construction business is classified into four sub-segments:
transportation, which includes roads and railways; water projects;
buildings and structures, and energy. Its infrastructure business
is also classified into four sub-segments: power, ports, roads and
airports.
SATYAM COMPUTER: Obtains SEBI Approval for 51% Stake Sale
---------------------------------------------------------
Satyam Computer Limited has won approval to sell stake in itself,
as the company seeks to restore investor confidence and stem
client defections, Harichandan Arakali at Bloomberg News reports.
Satyam Computer said it received approval from the Securities and
Exchange Board of India ("SEBI”) to facilitate a global
competitive bidding process which, subject to receipt of all
approvals, contemplates the selection of an investor to acquire a
51% interest in the company.
The process is expected to include the following:
* a subscription by the selected investor of newly issued
equity shares representing 31% of the company’s share
capital;
* upon a successful closing of the subscription, in
accordance with the applicable Indian law the investor
will be required to make a mandatory minimum public open
offer to purchase a minimum of 20% of the company’s share
capital. The open offer will be made at the same share
price as the price paid by the investor for the
subscription.
* If upon the closing of the open offer, the investor would
have acquired less than 51% of the share capital of the
company through the subscription and the open offer, the
investor would have the right to subscribe to additional
newly issued equity shares, such that the shares acquired
by the investor through the three related steps, the
initial subscription, open offer and the subsequent
subscription (if any) will result in the investor
acquiring 51% of the share capital of the company. The
subsequent subscription, if any, will not result in
requiring a further open offer.
* In accordance with applicable Indian law, the investor
will not be permitted to sell any equity shares acquired
for a period of three years from the date of the
acquisition, although the investor would be able to
subscribe for additional equity shares.
* The company expects to invite expressions of interest
from qualified investors shortly in a global competitive
bidding process. Qualified investors are expected to have
total net assets in excess of US$150 million.
"This means that the process can now move forward because the more
Satyam delays, the greater the risk that customers will desert
it,” Bloomberg News cited Apurva Shah, head of research at Mumbai-
based Prabhudas Lilladher Pvt., as saying in a telephone
interview.
According to Bloomberg News, Global Equities Research LLC said in
a Feb. 24 report that International Business Machines Corp. (IBM)
and Larsen & Toubro Ltd., India’s biggest engineering firm, are
the leading contenders to buy Satyam.
Meanwhile, Bloomberg News says bidders, aiming to gain a workforce
of about 50,000 employees and customers including Cisco Systems
Inc., may face the challenge of making offers before the Indian
company restates its financials.
Market Value
The Troubled Company Reporter-Asia Pacific, citing the Economic
Times, reported on March 4, 2009, that the market value of
the assets of Satyam has been estimated at around Rs 4,000 crore
after netting out the current and long-term liabilities. The
company's fixed assets, the report notes, have been valued at
around Rs 5,000 crore.
The Economic Times stated that the major current assets and
liabilities of the firm have been projected at Rs 700-800 crore
each. Long-term liabilities, the report says, have been estimated
at around Rs 1,000 crore and the amount includes a bridge loan of
Rs 600 crore for meeting working capital requirements.
"Prospective bidders are set to be furnished with the gross market
value of assets that is roughly around Rs 3,500-4,000 crore," the
Economic Times quoted an unknown source as saying.
However, the Economic Times noted that potential bidders may have
to independently estimate legal liabilities arising from the class
action suits filed in the US. The company is also locked in a
legal tussle with a UK-based mobile services provider Upaid, the
Economic Times added.
"The valuation of Satyam will be a challenge for prospective
bidders given that the actual amount of receivables and payables
will remain uncertain till the time the accounts of the company
are re-stated. Besides, the uncertainty on liabilities arising
from the US action suits could make it more difficult for
potential bidders to come close to the actual valuation of the
firm," the Economic Times quoted Nishith Desai Associates head M&A
Nishchal Joshipura as saying.
According to the Economic Times, KPMG and Deloitte have been given
the mandate to re-state Satyam's accounts over the seven years or
so, but the process could take a while. The Economic Times noted
that the board cannot wait for a re-statement of the accounts to
arrive at an enterprise valuation, as it could lead to further
loss of clients and employees.
As reported in the Troubled Company Reporter-Asia Pacific, on
January 7, 2009, former Satyam Chairman Ramalinga Raju resigned
after saying he manipulated the company's accounts. Specifically,
Mr. Raju said that as of September 30, 2008, the company's balance
sheet carries:
(1) inflated (non existent) cash and bank
balances of 50.40 billion rupees (US$1.04 billion)
(as against 53.61 billion reflected in the books);
(2) an accrued interest of 3.76 billion rupees which
is non existent;
(3) an understated liability of 12.30 billion rupees
on account of funds arranged by Mr. Raju; and
(4) an overstated debtors position of
4.90 billion rupees (as against 26.51 billion
reflected in the books).
Mr. Raju's confession prompted investigations into the company by
different entities including Andhra Pradesh state police, the U.S.
Securities and Exchange Commission and the Securities and Exchange
Board of India. Several groups also considered filing class
action suits against the company.
A three-member board was subsequently created by the government
which appointed KPMG and Deloitte Touche Tohmatsu for re-
evaluation of the software company's books.
Mr. Raju was later found to have invented more than one quarter of
Satyam's workforce and used fictitious names to siphon Rs200
million (US$4.1 million) a month out of the company, The Financial
Times said in a report last month.
About Satyam
Headquartered in Secunderabad, India, Satyam Computer Services
Limited (BOM:500376) -- http://www.satyam.com/-- is a global
information technology (IT) services provider, offering a range of
services, including systems design, software development, system
integration and application maintenance. It offers a range of IT
services to its customers, including application development and
maintenance, consulting and enterprise business solutions,
extended engineering solutions and infrastructure management
services. Satyam BPO Limited (Satyam BPO), a majority-owned
subsidiary of the Company, is engaged in providing business
process outsourcing (BPO) services. Satyam operates in two
segments: IT services and BPO services. On January 4, 2008, the
Company acquired Nitor global Solutions Ltd. On April 4, 2008, it
acquired Bridge Strategy Group LLC. In November 2008, it
announced the take over of Motorola Inc.'s software development
centre in Malaysia.
TATA MOTORS: Moody's Downgrades Corporate Family Rating to 'B3'
---------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Tata Motors Ltd to B3 from B1. The outlook remains
negative.
"The rating change reflects TML's limited financial flexibility,
high gearing as well as imminent refinancing risk in the context
of weak market conditions in India and overseas," says Elizabeth
Allen, a Moody's Vice President/Senior Credit Officer.
"The significant decline in sales volume challenges the company's
ability to achieve cash flow and profitability breakeven and thus
a reliance on debt funding," says Allen.
The Indian commercial and passenger vehicle markets declined
significantly by 44% and 16% year-on-year respectively during
4Q2008. Although TML increased its market share, it reported
sharp decline in profitability for the quarter and the 9 months
ended December 2008.
Some improvements were seen in January and February. TML reported
year-on-year domestic sales volume decline of 25% for commercial
vehicles in February while volume for passenger cars was similar
to the previous year. The commercial vehicle segment is not
expected to rebound to near historical levels in the near term. As
a result, any cost savings and reduction in raw material prices
may not be sufficient to offset the impact of volume reduction.
At the same time, TML overseas operation, Jaguar Land Rover, also
reported a material decline in overall sales. Since global auto
market conditions are likely to remain depressed in 2009, JLR's
performance will remain under significant pressure.
While TML has reviewed and cut back its capital expenditure, it
expects to maintain R&D spending on new product introduction as
well as investment in the Nano project in order to maintain its
competitiveness. As a result, until any equity raising or asset
divestment is completed, the prospect of de-leveraging in the next
12-18 months is very limited. Moody's expects TML's leverage to
remain at a high level which is more commensurate with (or below)
a B3 rating.
TML's capital structure also has a very high proportion of short-
term debt. The US$2bn bridge loan (paid down from US$3bn) that
TML raised for the acquisition of JLR will fall due in early June.
TML started the negotiation with key lenders for its refinancing,
but the timeframe to complete such refinancing is yet to be
finalized. Given the very tight credit conditions globally, the
refinancing poses a significant risk to the company.
Excluding the bridge loan, TML relies on uncommitted renewable
bank lines for funding, a common practice in India. Moody's
acknowledges TML's recognition in the Indian market and the fact
that, as part of the broader Tata Group, it has good access to the
Indian banking system. Therefore the current rating assumes that
these domestic bank credit facilities will be rolled-over as in
the past.
The rating also incorporates TML's strong market position in India
as well as support from Tata Sons Ltd (unrated). While the
broader Tata Group faces significant challenges given the group's
expansion in recent years, being part of the group helps TML's
access to funding.
The negative outlook reflects TML's imminent refinancing needs,
tight liquidity position, weak capital structure and challenging
market conditions. As such, a rating upgrade is unlikely in the
near term.
The rating could revert to stable if 1) the bridge loan is
successfully funded by appropriate long-term funding; 2) the
reliance on short-term debt funding is reduced such that the
overall capital structure of the group is more balanced; and 3)
operating performance stabilizes. The completion of asset sales
or equity-related fund raising, which would result in a material
and lasting reduction in the company's leverage, could also
benefit the rating.
On the other hand, the rating would experience downward pressure
if: 1) TML fails to effectively refinance the bridge loan; 2)
there is further deterioration in the motor industry's or TML's
fundamentals; and/or 3) signs emerge that access to funding is
proving difficult.
Moody's last rating action with regard to TML was a downgrade to
B1 with a negative outlook taken on 28 November, 2008.
Tata Motors Ltd, incorporated in 1945, is India's largest
manufacturer of commercial vehicles and second largest of
passenger vehicles. Its products include light, medium and heavy
commercial vehicles (trucks, pick-ups and buses), utility vehicles
and cars.
TML is listed on the Bombay Stock Exchange, National Stock
Exchange of India and New York Stock Exchange. It was ultimately
42% owned by the Tata Group as of Decembers 2008.
=================
I N D O N E S I A
=================
MEDCO: Mulls on Selling Bonds, Seeks Bank Loans to Pay Debts
------------------------------------------------------------
PT Medco Energi Internasional Tbk may sell bonds and seek bank
loans to refinance about $244 million of debt maturing in the next
12 months, The Jakarta Globe reports.
"We may pay using a combination of cash and debt,” President
Commissioner Hilmi Panigoro was quoted by the report as saying.
The report, citing Mr. Panigoro, said that the company will decide
how to fund its debt refinancing by the end of March.
Headquartered in Jakarta, Indonesia, Medco Energi Internasional
Tbk PT (JAK:MEDC) -- http://www.medcoenergi.com/-- is an
integrated energy company. The company is engaged in oil and
gas exploration and production, drilling services, methanol
production and the power generation industry. The company holds
working interests in various exploration and production blocks
in Indonesia and overseas, producing more than 21 million barrel
of oil and 61 million cubic feet of gas annually. In addition,
it has 10 onshore rigs and four offshore rigs (swamp barge) and
operates one methanol plant, one liquefied petroleum gas plant
and three power plants. The company's Indonesian operations
span from Aceh in Indonesia's western border to Papua in the
eastern territory.
The company's subsidiary, PT Apexindo Pratama Duta Tbk, is a
heavy equipment provider. Apexindo Pratama has five
subsidiaries, namely PT Antareja Jasatama, Apexindo Asia Pacific
B.V., Apexindo Khatulistiwa B.V., Apexindo Offshore Pte. Ltd.
and Apexindo Raniworo Pte. Ltd.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
March 6, 2009, Moody's Investors Service downgraded PT Medco
Energi Internasional Tbk's corporate family rating to B2 from B1
and its senior unsecured rating (Senior 8.75% bonds due 2010
issued by MEI Euro Finance Limited) to B3 from B2. The outlook
for the ratings is negative.
=========
J A P A N
=========
CABS LIMITED: Moody's Upgrades Ratings on Series 2005-1 Notes
-------------------------------------------------------------
Moody's Investors Service has upgraded the rating of the Series
2005-1 Class A Notes issued by CABS Limited. The Notes were issued
in July 2005 and are backed by a pool of unsecured consumer
finance loan receivables originated by Credia Co., Ltd.
(currently, Phlox Co., Ltd.).
The complete rating action:
Deal Name: CABS Limited Series 2005-1
-- Class A Notes, Upgraded to Ba1; previously on November 28,
2008, Ba2 Placed Under Review for Possible Upgrade
On September 14, 2007, Credia Co., Ltd. filed for civil
rehabilitation (minji saisei). On April 25, 2008, KAZAKA Finance
Co., Ltd. (currently, NEOLINE CAPITAL Co., Ltd.) was appointed
sponsor, and on October 1, Phlox Co., Ltd acquired and assumed the
rights and obligations arising from all of Credia's businesses,
and started operations. Since then, Phlox has also begun
servicing operations.
With regard to the performance of the underlying pool, although
the default rate had spiked because of the growing number of
claims for refunds of overpaid interest after Credia's filing, it
is declining. In November 2008, credit enhancement rose
significantly, due mainly to the other series' over-
collateralization from the same master trust to be used as
enhancement for Series 2005-1. Since then, enhancement has risen
following the sequential pay process.
Meanwhile, since Moody's previous review, the delinquency ratio
has been somewhat volatile, and the medium-term delinquency ratio
has not recovered to the level it was just before the filing.
However, even if the medium-term delinquency ratio remains at the
current level and results in a higher default rate, and regardless
of the risk stemming from overpaid interest, Moody's believes that
the current credit enhancement of the Class A Notes is sufficient
for the Ba1 rating -- hence, Moody's upgrade to the rating for the
Class A Notes.
However, Moody's also believes that the proportion of heavily
indebted obligors in consumer finance loan receivables is high and
that the asset is susceptible, to the worsening employment
situation, for example. Moody's is concerned that the worsening
financial environment will affect the performance of the
underlying pool, which would be a negative factor for the rating.
Moody's Investors Service is a publisher of rating opinions and
research. It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.
This release is not a solicitation or a recommendation to buy,
hold, or sell securities.
EXCELLENT COLLABORATION: Moody's Downgrades Ratings on Three Bonds
------------------------------------------------------------------
Moody's Investors Service announced it has downgraded and left on
review for further possible downgrade its ratings on the Series 1
Class B, C, and D bonds issued by Excellent Collaboration TMK.
The rating actions do not affect the Class A bonds (rated Aaa),
which are the most senior class.
This is a CBO transaction subject to the SME-related financial
policies of Tokyo and eight other municipalities (Osaka
Prefecture, and the cities of Chiba, Yokohama, Kawasaki, Shizuoka,
Osaka, Sakai, and Kobe), and arranged by Mizuho Bank, Ltd.
On January 30, 2009, Moody's announced that it had reviewed the
ratings of the Class B, C, and D bonds, as the likelihood of
further deterioration had grown because of the recent slump in
demand. Moody's also said that further assessment was needed,
particularly with regard to the effects of the worsening economic
environment and the Japanese government's policy to expand its
guarantee programs to support SME financing.
The rating actions reflect the effects on the underlying pool of
the worsening economic environment as well as the Japanese
government's policy. Furthermore, Moody's is keeping the ratings
under review for possible further downgrade because of factors
that could affect the performance of the transaction's pool, as
the end of the fiscal year approaches -- March 31st is the fiscal
year-end for many Japanese corporates.
Unlike typical SME CDOs in Japan, which are backed by amortizing
assets, this transaction is backed by bullet assets, wherein all
of the principal is to be paid down in a single payment at
maturity. Therefore, deterioration in the pool performance is
more likely to result in a decline in the credit of this
transaction.
The rating actions follow:
Excellent Collaboration Tokutei Mokuteki Kaisha
JPY10,400,000,000 Series 1 Class B Specified Bonds (Final
Maturity: July 7, 2010)
-- Current Rating: Baa1, on review for possible downgrade
-- Prior Rating: Aa2, on review for possible downgrade
-- Prior Rating Action Date: January 30, 2009, Aa2 placed under
review for possible downgrade
JPY500,000,000 Series 1 Class C Specified Bonds (Final Maturity:
July 7, 2010),
-- Current Rating: B2, on review for possible downgrade
-- Prior Rating: Baa2, on review for possible downgrade
-- Prior Rating Action Date: January 30, 2009, Baa2 placed under
review for possible downgrade
JPY500,000,000 Series 1 Class D Specified Bonds (Final Maturity:
July 7, 2010),
-- Current Rating: Caa3, on review for possible downgrade
-- Prior Rating: Ba3, on review for possible downgrade
-- Prior Rating Action Date: January 30, 2009, Ba3 placed under
review for possible downgrade
Moody's Investors Service is a publisher of rating opinions and
research. It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.
This release is not a solicitation or a recommendation to buy,
hold, or sell securities.
PREMIER ASSET: Capmark Downgrade Cues Fitch's Servicer Rating Cut
-----------------------------------------------------------------
Fitch Ratings has downgraded Premier Asset Management Company's
commercial mortgage special servicer rating to 'CSS2 (JPN)' from
'CSS2+ (JPN)' and has placed it on Rating Watch Negative.
The rating actions follow Fitch's recent downgrade on Capmark
Financial Group's Long-term Issuer Default Rating to 'B-' (B
minus) from 'BBB-' (BBB minus), and its simultaneous placement on
RWN following the company's announcement of significant Q408
charges and the withdrawal of its application to become a bank
holding company. Capmark Financial Group is an indirect parent
company of Premier. Fitch will continue to closely monitor the
financial condition of Capmark Financial Group and operational
performance of Premier and will take rating actions or provide
further commentary, as necessary.
Premier is a full product-line servicer based in Tokyo, offering
master, primary, and special servicing. As of the end of
February 2009, Premier's servicing portfolio handled by its
special servicing division amounted to JPY200.9 billion in unpaid
principal balance. Premier has increased the portion of third
party business since September 2008.
Premier is a 100%-owned subsidiary of Capmark Finance, Inc., a US
commercial mortgage servicer which has a master servicer rating, a
primary servicer rating and a special servicer rating by Fitch.
Capmark Finance, Inc. is a part of the Capmark Financial Group,
Inc.
SANYO ELECTRIC: Panasonic Begins Marketing of JPY400 Bln Bonds
--------------------------------------------------------------
Panasonic Corp. has started marketing JPY400 billion (US$4.1
billion) in bonds to help pay for its purchase of Sanyo Electric
Co., Bloomberg News reported.
The company is selling JPY100 billion in three- year 1.14 percent
bonds, JPY200 billion in five-year 1.404 percent bonds and JPY100
billion in 2.05 percent 10-year notes, the report said citing a
March 4 filing.
Panasonic will use money raised from the bonds to bolster its
balance sheet after it buys Sanyo, Makoto Mihara, head of investor
relations, told Bloomberg News in a phone interview last week.
According to the news agency, Panasonic hired Nomura Securities
Co., Goldman Sachs, Daiwa Securities, Nikko Citigroup Ltd. and
Mizuho Securities Co. to manage the bond sale.
Bloomberg News recalls Panasonic on Dec. 19 said it will pay as
much as JPY806.7 billion to buy Sanyo.
As reported in the Troubled Company Reporter-Asia Pacific on
Mar. 5, 2009, Bloomberg News said Panasonic gained Sanyo's
endorsement on Nov. 7 to take over the company. Goldman Sachs
Group Inc., Daiwa Securities Group Inc. and Sumitomo Mitsui
Financial Group Inc., Sanyo's three biggest shareholders, bailed
out the company for JPY300 billion in 2006 and agreed to hold
their shares until March 2009, the new agency disclosed.
The takeover requires antitrust clearance in 11 countries,
including Japan and China, Panasonic said as cited by Bloomberg
News.
As reported in the Troubled Company Reporter-Asia Pacific on
March 4, 2009, Japan Today said Panasonic is postponing its US$9
billion public tender offer to buy Sanyo due to legal process in
the U.S. and other countries.
"Pursuant to domestic and foreign competition laws and
regulations, all procedures in Japan, the U.S., Europe, China and
other countries required for the launch of the tender offer are in
progress," a joint company statement obtained by Japan Today said.
According to Japan Today, the timing of the launch will be
announced "around late April."
About Sanyo
Headquartered in Osaka, Japan, Sanyo Electric Co. Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
November 14, 2008, Fitch Ratings placed Sanyo Electric Co. Ltd.'s
'BB+' Long-term foreign and local currency IDRs and senior
unsecured ratings on Rating Watch Positive.
===============
M A L A Y S I A
===============
EKRAN BERHAD: Posts MYR4.01 Mil. Net Loss in Qtr. Ended Dec. 31
---------------------------------------------------------------
Ekran Berhad disclosed its financial report for the second quarter
ended December 31, 2008. For the current period, the company
incurred MYR4.01 million net loss on MYR3.37 million of revenues
as compared with MYR3.92 million net profit on MYR20.54 million of
revenues in the same quarter of the preceding year.
As of December 31, 2008, the company's balance sheet showed
MYR1.05 million of total assets, MYR317,448 of total liabilities
and total shareholders' equity of MYR730,116.
Ekran Berhad is a Malaysian company engaged in investment
holding and the provision of management services to its
subsidiary companies. Through its subsidiaries, the company is
engaged in property development; the provision of property
management services; timber logging and saw milling; the sale of
timber products, and the operation of oil palm plantations. The
company's operations are mainly concentrated in Malaysia, China
and the Philippines.
* * *
Ekran has been classified as an affected listed issuer under
Amended Practice Note 17, when auditors expressed a disclaimer
opinion on the company's audited financial report for the
financial year ended June 30, 2005, and for defaulting on
various credit facilities.
IDAMAN UNGGUL: Bourse Extends Plan Filing Period to May 29
----------------------------------------------------------
Idaman Unggul Berhad disclosed in a regulatory filing that Bursa
Malaysia Securities Berhad has granted the company an extension of
time until May 29, 2009, to submit its regularization plan to the
Securities Commission and other relevant authorities for approval.
Bursa Securities will commence to de-list the securities of
Idaman in the event:
-- Idaman fails to submit its regularization plan to
the relevant authorities for approval within the
Extended Timeframe;
-- the company fails to obtain the approval from any of the
Approving Authorities necessary for the implementation
of its regularization plan and does not appeal to the
Approving Authorities within the timeframe to lodge an
appeal;
-- the company does not succeed in its appeal against the
decision of the Approving Authority; or
-- the company fails to implement its regularization plan
within the timeframe or extended timeframes stipulated
by the Approving Authorities.
About Idaman Unggul
Idaman Unggul Berhad is an investment holding company, whose
principal activity is the provision of corporate, administrative
and management support to its subsidiaries. The company
operates in two segments: insurance, which includes underwriting
of life insurance and all classes of general insurance business,
and other, which includes investment holding. Idaman Unggul's
subsidiaries include Tahan Insurance Malaysia Berhad, F.T. Land
Sdn. Bhd., PCM Synergy Sdn. Bhd., PICT Solution Sdn. Bhd. and
Straight Effort Sdn. Bhd. On July 12, 2006, the company
disposed Advanced Electronics (M) Sdn. Bhd. to Elevale Temasek
Sdn. Bhd. On July 3, 2006, Tahan Insurance Malaysia Berhad
disposed of its Life Insurance Business to AXA Affin Life
Insurance Berhad. Waikiki Beach Hotel Sdn. Bhd., a wholly owned
subsidiary of Idaman Unggul, was also divested as part of the
Life Insurance Business disposal. On January 17, 2007, the
company disposed IUB Asset Management Sdn Bhd to Capital
Intelligence Holdings Sdn Bhd.
* * *
As reported by Troubled Company Reporter-Asia Pacific on
March 6, 2008, the company was classified as an Affected
Listed Issuer under Amended Practice Note 17/2005 of the Listing
Requirements of Bursa Malaysia Securities Berhad, since the
company's shareholders' fund has dropped to MYR41.204 million
which is lower than the 25% of the paid-up share capital and
minimum issued and paid up capital of MYR60 milion required
under the Listing Requirements.
LIQUA HEALTH: Incurs MYR5.67 Mln. Net Loss in Qtr. Ended Dec. 31
----------------------------------------------------------------
Liqua Health Corporation Berhad posted a MYR5.67 million net loss
on MYR6.91 million of revenues in the quarter ended Dec. 31, 2008,
as compared with a MYR45.18 million net loss on MYR9.22 million of
revenues in the same quarter of 2007.
The Group's sales for the current quarter decreased by 16.7% from
MYR8.3 million to MYR6.9 million over the preceding quarter,
mainly due to lower sales activities. As a result, the Group
registered a higher pretax loss of RM5.7 million as compared to
RM0.7 million of loss before tax in the preceding quarter.
The Group's balance sheet as at December 31, 2008, showed
total assets of MYR22.16 million and total liabilities aggregating
to MYR25.09 million resulting to a shareholders' deficit of
MYR2.93 million.
As of December 31, 2008, the Group's consolidated balance
sheet also showed strained liquidity with current assets of
MYR14.75 million, available to pay total current liabilities of
MYR23.26 million coming due within the next twelve months.
About Liqua Health
Liqua Health Corporation Berhad is principally engaged in the
businesses of investment holding and provision of management
services. Its core business is direct selling of health food
and related products, through its subsidiaries. Liqua Health
and Liqua Spirulina are the two core health products of the
company. The company's subsidiaries include Liqua Health
Marketing (M) Sdn. Bhd., which is engaged in direct selling of
health food and general merchandise; Packcon (Asia) Sdn. Bhd,
which is engaged in marketing packaging materials and general
trading; Liqua Biotech Sdn. Bhd formerly known as Liqua Heath
Dairy Marketing & Supplies Sdn. Bhd.), which is engaged in
research and development; Quantum Healing Centre Sdn. Bhd
(dormant), which is engaged in the trading and marketing of
health food and general merchandise. In February 2007, Liqua
Health Marketing acquired the remaining 51% interest in Liqua
Health Chain.
* * *
The company was classified as an Affected Listed Issuer as it
has triggered Paragraph 2.1 of the Amended PN17 as the
consolidated shareholders' fund has dropped to approximately
MYR5.9 million which is below the 25% of the paid-up share
capital which stands at MYR144.3 million and the minimum issued
and paid up capital of MYR60 million required under paragraph
8.16A(1) of the Listing Requirements.
PILECON: Posts MYR5.17 Mln. Net Loss in Qtr. Ended Dec. 31
----------------------------------------------------------
Pilecon Engineering Berhad reported a net loss of MYR5.17 million
in the quarter ended December 31, 2008, as compared to the
recorded MYR171,000 net loss in the same quarter of 2007.
The company posted MYR9.87 million of revenues in the quarter
ended December 31, 2008, lower as compared to the MYR13.78 million
of revenues recorded in the first quarter of 2007.
As of December 31, 2008, the company's balance sheet showed
MYR526.04 million of total assets and MYR266.07 million of total
liabilities resulting in a shareholders' equity of
MYR259.97 million.
For the twelve months ended December 31, 2008, the company posted
a net loss of MYR798,00 on MYR37.86 million of revenues, compared
with a MYR8.66 million net profit on MYR35.91 million of revenues
in the corresponding period in 2007.
Headquartered in Selangor Darul Ehsan, Pilecon Engineering
Berhad is engaged in building construction and civil engineering
works. The Company is also involved in trading and hiring of
plant and equipment for foundation engineering and civil
engineering works. It also undertakes resort operation and
complex management services. The Group operates in Malaysia,
Hong Kong and Singapore.
The company was classified as an Affected Listed Issuer of the
Amended Practice Note No. 17/2005 of the Listing Requirements of
Bursa Malaysia Securities, as the company defaulted in its
payment and was unable to provide a solvency declaration to the
Bursa Securities.
WWE HOLDINGS: To Hold 20th Annual Meeting on March 25
-----------------------------------------------------
WWE Holdings Bhd will hold its 20th annual general meeting at
9:30 a.m. on March 25, 2009, at Concorde Hotel Shah Alam, Concorde
II (Level 2), No. 3 Jalan Tengku Ampuan Zabedah C9/C, 40100 Shah
Alam, in Selangor Darul Ehsan.
At the meeting, the members will be asked to:
-- receive the Audited Financial Statements of the Company
for the financial year ended September 30, 2008, and the
Reports of the Directors and Auditors thereon;
-- approve the payment of Directors' fees of MYR30,354.00
for the financial year ended September 30, 2008;
-- re-elect this director retiring in accordance with Article
98 of the Company's Articles of Association:
(a) YBhg Tan Sri Rozali Ismail;
-- re-elect these directors retiring in accordance with Article
103 of the Company’s Articles of Association:
(a) Ir Ausamah Darwish Bin Mohd Daud
(b) Puan Nurjannah Binti Ali
(c) Ir Syed Ismail Syed Yusoff
(d) YM Raja Nazrin Bin Raja Ghazilla;
-- appoint Messrs BDO Binder (AF 0206) as the Auditors of
the Company and to authorize the Directors to fix their
remuneration.
Special Business:
To consider and if thought fit, to pass this resolution as
Ordinary Resolution:
-- Authority to allot shares
About WWE Holdings
WWE Holdings Bhd is engaged in investment holding and is a
contractor for the provision of engineering services related to
design, fabrication, installation and commissioning of water,
wastewater treatment, environmental facilities and construction
activities. The company's subsidiaries include WWE Construction
Sdn. Bhd., a contractor for the provision of engineering
services related to design, fabrication, installation and
commissioning of water, wastewater treatment, environmental
facilities and construction activities; WWE Industries Sdn.
Bhd., which provides installation of mechanical and electrical
works connected with water, wastewater treatment and
environmental engineering, and Quality Water Technology Sdn.
Bhd., which undertakes research and development activities to
develop new technologies related to water and wastewater. On
March 23, 2006, WWE acquired the remaining 30% equity interest
in Quality Water.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
March 7, 2008, the company was classified as an Affected Listed
Issuer under PN 17 of Bursa Malaysia Securities Berhad's Listing
Requirements because the company's auditors were unable to
ascertain the recoverability of the amounts and the outcome of
the legal suit brought against the company. Thus, the auditors
are unable to form an opinion on the financial statements of the
Group for the financial year ended September 30, 2007.
=============
N I G E R I A
=============
ECOBANK TRANSNATIONAL: Fitch Comments on Rating Downgrade to 'B'
----------------------------------------------------------------
Fitch Ratings provides the following rationale which explains its
3 March 2009 downgrade of Ecobank Transnational Incorporated's
Long-term Issuer Default Rating to 'B' from 'B+' and other related
rating actions.
The downgrade of ETI's Long-term IDR reflects its growing and
concentrated exposure to Nigeria through its local subsidiary,
Ecobank Nigeria, and the potential for deteriorating asset quality
as a result of Ecobank Nigeria's exposure to the Nigerian Stock
Exchange through its share lending activities. ETI's ratings also
reflect its weak capitalization despite a recent capital increase,
increasing leverage at the holding company, and high levels of
operational risk arising from rapid growth and the weak economic
environments where the group operates. ETI's Long- and Short-term
IDRs and Individual Rating also factor in its acceptable liquidity
and satisfactory profitability. The revision of the Outlook to
Negative on March 3 on ETI's IDR reflects Fitch's view that ETI
and Ecobank Nigeria's IDR ratings are increasingly converging
given ETI's increased exposure to its Nigerian subsidiary and the
potential impact that Ecobank Nigeria may have on ETI.
ETI is a bank holding company and the parent of a group of banks,
the Ecobank group, currently operating in 26 African countries.
Rapid expansion in Nigeria resulted in Ecobank Nigeria, the
largest operating subsidiary, representing 36% of ETI's
consolidated assets at end-H108 (versus 31% at end-H107), 40% of
profit before tax (versus 29% at end-H107) and an estimated 50.8%
of equity at end-2008. Ecobank group's profitability continued to
be strong in 2008, reflecting robust growth in business volume,
largely driven by the Nigerian market. Operating ROAE and ROAA
remained at a satisfactory 32% and 3% respectively at end-Q308.
Impairment charges, which accounted for a growing 20% of pre-
impairment operating profit at that date, were largely related to
the Nigerian subsidiary.
Ecobank group's asset quality is weak and deteriorated in 2008
despite a slight improvement in Q408 due to an increased focus on
bad loan recoveries. The impaired loan ratio increased to 8% at
end-2008 from 6% at end-2007, with the increase in impaired loans
outpacing the strong loan growth. The coverage ratio stood at 65%,
with unreserved impaired loans representing 9% of equity at end-
2008. ETI's exposure to share lending arises from Ecobank Nigeria,
which had a combination of on- and off-balance sheet exposures
amounting to US$440 million to stockbrokers and individuals at
end-January 2009. Management estimated that the average coverage
ratio for this exposure was around 80% at the same date. Fitch
believes that Ecobank group performance may suffer in 2009 because
of the tougher economic conditions in the main countries in which
it operates, particularly in Nigeria, and from subsequent credit
quality deterioration.
Following a planned US$2.5 billion rights issue (combined with a
subscription offer) launched in August 2008, ETI managed to raise
only US$550.8 million of fresh capital at end-December 2008,
partly as the issue coincided with major turbulence on global
capital markets. The bulk of the new equity will be used to
recapitalize Ecobank Nigeria due to the strong growth of the
latter's risk-weighted assets during 2008. ETI's double leverage
ratio (defined as ETI equity investment in subsidiaries/ETI common
equity) will therefore increase to 110% at end-2008 from 99% at
end-2006. Fitch considers that Ecobank group's capitalization
remains low given the potential for increased impairments arising
from Ecobank Nigeria's share lending activities.
On a stand alone basis, ETI has an acceptable liquidity profile.
The holding company depends mainly on cash flows from
subsidiaries' dividends to cover repayment of borrowed funds. Its
liquid assets are considered satisfactory relative to the cash
needed to service and redeem the outstanding debt and pay
dividends.
ETI was established in Togo in 1985. Its main activity is
wholesale and SME banking, although the bank is seeking to expand
its personal banking activities. ETI's shares are listed in
Ghana, Ivory Coast and Nigeria. There is no controlling interest.
The largest shareholder, an institutional investor, holds 14.2%.
The rating actions taken on 3 March 2009 were:
ETI
-- Long-term foreign currency IDR: downgraded to 'B' from 'B+';
Outlook revised to Negative from Stable
-- Short-term foreign currency IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D'
-- Support Rating: affirmed at '5'
-- Support Rating Floor: affirmed at 'NF'
Ecobank Nigeria
-- Long-term foreign currency IDR: downgraded to 'B-' (B minus)
from 'B'; Outlook Stable
-- Short-term foreign currency IDR: affirmed at 'B'
-- Individual Rating: affirmed at 'D/E'
-- Support Rating: downgraded to '5' from '4'.
-- National Long-term: downgraded to 'BBB-(nga)' (BBB minus)
from 'BBB+(nga)'
-- National Short-term: downgraded to 'F3(nga)' from 'F2(nga)'
=====================
P H I L I P P I N E S
=====================
SAN MIGUEL: S&P Cuts Foreign Currency Corporate Rating to 'BB-'
---------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered the long-term
foreign currency corporate credit rating on Philippines-based San
Miguel Corp. to 'BB-' from 'BB'. The outlook is stable.
The rating downgrade reflects the weakening credit profile of San
Miguel as a result of recent actions taken by the company which
will effectively (1) reduce its stake in its core domestic brewery
business; and (2) increase its penetration or exposure into the
utilities and infrastructure sectors in the Philippines.
"In our opinion, San Miguel is expanding into sectors that are
exposed to more uncertain operating and regulatory domestic
environment," said Standard & Poor's credit analyst Allan
Redimerio. In addition, S&P believes these sectors are capital
intensive, riskier, and have lower profit margins than San
Miguel's traditional beer business, he added.
In S&P's analysis, Standard & Poor's has also taken into account
Kirin Holdings Co. Ltd. (Kirin, A+/Stable/--) potentially taking a
significant stake in San Miguel's domestic brewery subsidiary.
The domestic brewery subsidiary, San Miguel Brewery Inc.,
contributes a majority of the company's operational income. If
Kirin acquires the stake successfully, San Miguel's holding will
be lowered to 51% in SMB from 94.25% currently. S&P believes the
reduced access to SMB's cash flows weakens the company's credit
metrics.
On Feb. 20, 2009, Japanese food and beverage company Kirin
announced it will purchase 43.25% in SMB from San Miguel. The
acquisition is pending, among other things, on the completion of
SMB's purchase of San Miguel's interest in its wholly owned
subsidiaries that owns the domestic beer brands and other
intellectual property rights related to beer, and parcels of lands
used in the brewery operations. In addition, Kirin is also
looking to acquire 5.75% stake in SMB from the public through a
tender offer. Kirin will sell its 19.9% stake in San Miguel to a
Philippine-based investment firm to partly finance the acquisition
cost of SMB.
======================
S O U T H A F R I C A
======================
PAMODZI GOLD: Waits on Loan to Pay Wages, Workers on Strike
-----------------------------------------------------------
Around 4,000 workers at Pamodzi Gold Ltd.'s Free State province
mines went on strike last week over unpaid wages, Bloomberg News
reported citing a labor union official.
The management told workers they are "waiting for a loan” to pay
the salaries, the report cited David Spunzi, a regional secretary
for the National Union of Mineworkers, as saying.
Workers have yet to receive pay that was due Feb. 28, the
Solidarity labor union said separately in an e-mail message
obtained by the news agency. It’s the third time pay for workers
at the Free State mines has been late, the union said as cited by
the report.
The report recalls the company said Feb. 18 it had yet to be
notified when it might receive a 200 million-rand (US$18.8
million) loan from Best Rock Investments LLC.
According to Bloomberg News, Friday last week, Pamodzi expected to
hear from Best Rock when it will receive the loan.
"They just gave notice that in the last two days progress has been
made getting the money allocated,” the report quoted Pamodzi Chief
Executive Officer Peter Steenkamp as saying on March 6. "It’s
really hurt us that they haven’t provided the loan within the
timeframe indicated,” he said, adding that the payment was due
late last year.
As reported in the Troubled Company Reporter-Asia Pacific on Jan.
14, 2009,
Justin Brown at Business Report wrote Mr. Steenkamp said the
company will avoid bankruptcy with an injection of up to R676
million.
According to the Johannesburg newspaper, Pamodzi was arranging
R400 million in five-year loans from the Industrial Development
Corporation (IDC) and Pamodzi Resources. Both loans carry an
effective interest rate of 35 percent.
The company also planned to raise R103 million by March through a
rights issue and a further US$18 million (R170 million) by
converting an outstanding hedge payment into a loan, the newspaper
said.
JSE Delisting
Mr. Steenkamp, Business Report said, downplayed African exchange
JSE Limited's threat to delist the company unless two loan
agreements were amended, stating that the risk is remote.
The report recalled in December, the JSE said Pamodzi would have
to change the conditions of its loans with the IDC and Pamodzi
Resources. The agreements as they stand require that any material
acquisitions and disposals must have prior approval from the
lenders, the report stated. The JSE, the report noted, said it
will consider suspending or terminating Pamodzi's listing unless
this condition is removed.
Mounting Losses
For the nine months ended September 30, 2008, Pamodzi incurred a
net loss of R427,673,000. The company recorded a R208,488,000
loss in the year ended December 31, 2007.
According to Business Report, Pamodzi Gold incurred mounting
losses after selling gold below market price and with the
acquisition of two gold mines early last year.
As of September 30, 2008, the company's total assets and total
liabilities stood at R1,917,030,000 and R1,757,518,000
respectively.
Pamodzi Gold said it will use the R400 million fund from the IDC
and Pamodzi Resources for these purposes:
-- R180 million to settle long outstanding creditors;
-- settle the loan from MC Resources Limited and Casten
Holdings Limited, shareholders of Thistle, amounting
to R34.2 million;
-- settle the RMB revolving credit facility of
R26.8 million; and
-- R160 million for future capital expansion and assumed
to be split evenly between IDC loan and Pamodzi
Resources loan.
About Pamodzi Gold
Pamodzi Gold Limited (JNB:PZG) -- http://www.pamodzigold.co.za/--
is a junior gold mining company with assets on the Witwatersrand
gold basin in South Africa. The Company has gold mining
operations in the East and West Rand of Gauteng Province in South
Africa. The Company has acquired operations in Orkney, in the
North West Province, and the President Gold mine in the Free State
province. The West Rand operation consists of Pamodzi Gold West
Rand (Pty) Limited (PGWR)'s Middelvlei opencast mine situated 55
kilometers southwest of Johannesburg, extracting the Black Reef
ore body. The East Rand Operations consist of three underground
operations, namely Grootvlei Proprietary Mines Limited
(Grootvlei), Consolidated Modderfontein Mines Limited (Cons
Modder) and Nigel Gold Mining Company (Pty) Limited situated on
the East Rand, some 40 kilometers east of Johannesburg. The PGWR
operations are an early-stage gold mining project. The PGER
operations are located approximately 40 kilometers east of
Johannesburg in the Springs area.
*********
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
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Information contained herein is obtained from sources believed
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*** End of Transmission ***