/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090616.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 Tuesday, June 16, 2009, Vol. 12, No. 117 Headlines A U S T R A L I A CITY PACIFIC: Trilogy Bid Gets Initial 36.5% Investors Vote FAIRFAX MEDIA: Merges Canberra Bureaux of SMH and The Age SUNCORP-METWAY: May Cut Up to 500 Jobs Amid Rising Bad Debts C H I N A CHINA PROPERTIES: S&P Downgrades Corporate Credit Rating to 'B-' HOPSON DEVELOPMENT: S&P Affirms 'BB-' Corporate Credit Rating SHENZHEN DEV'T: Ping An to Buy Up to 30% Stake in Bank XINHUA FINANCE: Moody's Withdraws 'B3' Corporate Family Rating H O N G K O N G CHINA LAW: Ho Wai Chi Steps Down as Liquidator GEORGE ZEE: Appoints Cheung Chui Ping Chaplin as Liquidator INNOPRISE INVESTMENT: Placed Under Voluntary Wind-Up KAWAMURA CO: Resets Creditors' Meeting to June 19 SENTROL LIFESAFETY: Chiu and Yuen Step Down as Liquidators THE GOLD CLUB: Members to Receive Wind-Up Report on July 13 I N D I A AIR INDIA: To Defer June Salary by 15 Days AHMEDABAD PACKAGING: Low Net Worth Cues CRISIL 'BB' Ratings BALAJI SOURCINGS: CRISIL Puts 'BB+' Rating on INR50MM Cash Credit CHAITANYA OILS: CRISIL Rates INR56.5 Mln Cash Credit Limit at 'B+' CT RAMANATHAN: CRISIL Assigns 'BB' Rating on INR5 Mln Term Loan KINGFISHER AIRLINES: To Roll Over INR8 Billion Short Term Debt PATEL INTEGRATED: Fitch Assigns 'BB+' National Long-Term Rating RITESH EXPORT: Weak Financial Risk Profile Cues CRISIL 'P4' Rating SUBBURAJ COTTON: Delays in Loan Payment Prompts CRISIL 'D' Ratings I N D O N E S I A TELEKOMUNIKASI: To Secure Loan and Issue Bonds to Finance Capex TELEKOMUNIKASI: To Pay Shareholders 55% of Profit for Dividend J A P A N ASTRA ALPHA: S&P Raises Ratings on 2005-01 Notes from 'CCC' ASYST TECHNOLOGIES: Can't File Quarterly Report on Time CAFES 2: Fitch Downgrades Ratings on Class E Notes to 'BB' CAFES 3: Moody's Cuts Ratings on Three Classes of Certificates GODO KAISHA: Moody's Changes Ratings on Class B to D Notes ELPIDA MEMORY: Taiwan Memory Plans to Buy Less 10% Stake in Firm L-JAC6 TRUST: Moody's Changes Ratings on Various Certificates MEDCA JAPAN: JCR Withdraws "BB-" Rating on Senior Debts ORSO FUNDING: Moody's Changes Ratings on Various 2005-2 Certs. * JAPAN: Two Securities Firms Go Under, Sell Unlisted Shares M A L A Y S I A PECD BERHAD: Perkasa Sutera Serves Windup Petition Against Unit RANHILL BERHAD: To Hold Extraordinary General Meeting on June 25 RHYTHM CONSOLIDATED: Penang Dev't. Okays Proposed Asset Disposal RHYTHM CONSOLIDATED: Reconciles Deviation of Financial Results TIME ENGINEERING: Completes MYR342-Million Loan Stock Issuance N E W Z E A L A N D GENEVA FINANCE: Posts NZ$6.99MM Loss for the Year Ended March 31 PLUS SMS: Clarifies Directors' Resignation, Shares Still Suspended P H I L I P P I N E S METRO BANK: Fitch Affirms 'B' Foreign Currency IDR SECURITY BANK: Fitch Affirms 'B' Short-Term Foreign Currency IDR S I N G A P O R E CHARTERED SEMICONDUCTOR: Temasek Seeks Better Offer for Stake DMC CHEMICALS: Court Enters Wind-Up Order S.C. CAPITAL: Pays First and Final Dividend SIEM SENG: Court to Hear Wind-Up Petition on June 26 UNIFONE PTE: Creditors' Proofs of Debt Due on June 29 X X X X X X X X * BOND PRICING: For the Week June 8 to June 12, 2009 - - - - - ================= A U S T R A L I A ================= CITY PACIFIC: Trilogy Bid Gets Initial 36.5% Investors Vote ----------------------------------------------------------- Trilogy Capital Group and Balmain Commercial have secured more than two-thirds of the 50 percent of votes required to take over the AU$640 million City Pacific mortgage fund, two weeks before unitholders meet to vote on the proposal, The Australian reports. According to the report, the joint venture said investors controlling about 36.5 percent of the 880 million units on issue had voted in favour of the takeover, which requires more than 50 percent of votes to proceed. The report, citing Trilogy executive chairman Rodger Bacon, says votes representing 328 million of the 880 million mortgage fund units had been received to date, with 97.5 percent of those supporting the move. Separately, The Australian reports that City Pacific has restructured its debt more than six months after the company breached the license it uses to manage the mortgage fund. City Pacific banker CBA, the report says, has agreed to subordinate AU$39 million of debt to allow the group to meet financial services license requirements. The Australian recalls that City Pacific announced in its December 31 accounts, issued in March, that it was in breach of the conditions of its financial services license because it had negative assets of AU$9 million. As at December 31, the report relates, City Pacific reported a half-year loss of AU$74.3 million. The company's auditor KPMG, at that time, warned the group may be in danger of collapse, the Australian notes. As reported in the Troubled Company Reporter-Asia Pacific on March 2, 2009, The Australian said that Trilogy will launch a hostile takeover bid for City Pacific's mortgage fund. The Australian related that Trilogy executive chairman Mr. Bacon said Trilogy would seek to replace City Pacific as the responsible entity controlling the fund. The Australian stated that the fund has about 11,000 investors and for Trilogy to gain control it requires support from voters controlling more than 50 percent of the fund's 887 million issued shares. Investors in the City Pacific mortgage fund will vote on June 25 whether to hand control of the fund to Trilogy, the TCR-AP reported on May 26, 2009. As reported in the TCR-AP on August 18, 2008, City Pacific said it took the necessary steps to preserve the value of the Fund's assets and protect unitholders investments in light of the rapidly changing market conditions. As a result of the significant market changes, City Pacific made the decision in March 2008 to defer the payment of redemptions from the Fund while continuing the payment of distributions to unitholders. 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 the previous year's operating profit of AU$133.42 million. FAIRFAX MEDIA: Merges Canberra Bureaux of SMH and The Age --------------------------------------------------------- Fairfax Media Limited is merging the Canberra bureaux of its two major newspapers - The Sydney Morning Herald and The Age - but says no jobs will be lost, the Australian Associated Press reports. The AAP says in a memo released on June 15, Fairfax chief executive and publisher Lloyd Whish-Wilson told staff of the "important changes" that would strengthen and broaden national coverage. The memo, as cited by AAP, stated that: -- reporters currently working separately for the Sydney and Melbourne newspapers will now form one team providing stories for both mastheads; -- the changes at Fairfax's Canberra bureau, based at Parliament House's press gallery, would maintain current staffing levels; -- stories written by the masthead-specific reporters will be published by all Fairfax online sites; and -- a remaining pool of some 12 reporters will work as a team providing copy for the SMH and The Age. The new structure will take effect from Monday, June 22, the report notes. Credit Ratings Downgrade The Troubled Company Reporter-Asia Pacific reported on May 18, 2009, that Standard & Poor's Ratings Services lowered its long-term corporate credit and debt ratings on Fairfax Media Ltd. to 'BB+' from 'BBB-'. In addition, the rating on Fairfax's stapled preference securities (which attract intermediate equity credit from Standard & Poor's) was lowered to 'B+' from 'BB'. The outlook is stable. "Although we are disappointed with the decision of Standard & Poor's we are confident that our diversified market positions, strong balance sheet and operational focus will allow us to weather the current economic conditions and to take advantage of any upturn when it occurs," Brian McCarthy, Chief Executive Officer and Managing Director of Fairfax Media Limited said in a statement. "The company remains comfortably within its various financial covenants." Fairfax Media, however, said that due to this change in credit rating, some margins under certain financing facilities are increased with a consequential increase in net interest expense in the 2010 financial year of approximately AU$10 million. About Fairfax Media Headquartered in Sydney, Australia, Fairfax Media Limited (ASX:FXJ) -- http://www.fxj.com.au/-- is engaged in publishing of news, information and entertainment; advertising sales in newspaper, magazine and online formats; radio broadcasting, and film and television production and distribution. In Australia, the company's mastheads include The Sydney Morning Herald, The Age, BRW, The Sun-Herald and The Land. Its New Zealand mastheads include The Dominion Post, The Press and Cuisine. Fairfax Media online businesses include Fairfax Digital in Australia (including the news sites, smh.com.au and theage.com.au, and classified and transaction Websites), and Trade Me and stuff.co.nz in New Zealand. On November 9, 2007, it acquired the former Southern Cross Broadcasting's radio business, (including metropolitan stations 2UE in Sydney, 3AW and Magic 1278 in Melbourne, 4BC and 4BH in Brisbane, and 6PR and 96FM in Perth), the Southern Star television production and distribution business, Satellite Music Australia and associated businesses from Macquarie Media Group. SUNCORP-METWAY: May Cut Up to 500 Jobs Amid Rising Bad Debts ------------------------------------------------------------ The Sydney Morning Herald reports that Suncorp-Metway Ltd may cut up to 500 jobs by September as it restructures its banking division amid increasing bad debts provisions in the commercial property sector. The job cuts may affect those lending operations from which Suncorp's banking arm is already withdrawing and which it may abandon, the Herald relates. A Suncorp spokesman, however, said the group was not in a position to say how many jobs would be affected by the review. "It's far too early to be specific about numbers or the time frame as we are still in the process of working through those issues," he told the Herald. The report says the bancassurance group has been reviewing its lending business since updating the market last month about its financial prospects for the financial year ending June 30. The company has had a hiring freeze in place for the past year as part of measures to control costs, and it hopes to minimize the number of actual staff axed, the Herald notes. Brisbane, Australia-based Suncorp-Metway Ltd. -- http://www.suncorp-metway.com.au/-- is engaged in the business of banking, insurance, investment and superannuation and focuses on retail customers and small to medium businesses. The Company’s banking division provides a range of banking services including loans, savings and investment accounts, credit cards, foreign currency services for retail and small- to medium-business customers. It includes general insurance group, which offers a range of covers across Personal, Commercial, Workers Compensation and CTP insurance. Wealth Management covers life, super and managed investments. It also includes the funds management activities of the Company. Suncorp Metway Investment Management Limited (SMIML) is a wholly owned subsidiary of Suncorp-Metway Ltd. It is responsible for wholesale investment management of the Suncorp Group. On April 15, 2008, the Company acquired Prophet Financial Advice Pty Ltd. On March 20, 2007, it acquired Promina Group Limited. * * * As reported in the Troubled Company Reporter-Asia Pacific on Feb. 11, 2009, Fitch Ratings affirmed and removed from Rating Watch Evolving Suncorp-Metway Limited's and Suncorp Metway Insurance Limited's ratings. These rating actions have been taken: -- Individual rating: affirmed at 'B', removed from RWE -- Support Rating Floor affirmed at 'BB+'; removed from RWE At the same time, Fitch placed Suncorp's 'A+' Long- term Issuer Default Rating on Negative Outlook, and SMIL's Insurer Financial Strength Rating on Stable Outlook. The actions follow Suncorp's announcement that there has been a significant increase in bad debts, which will affect H109 profits. With signs that the Queensland and Australian economies are facing significant challenges, risks to asset quality are clearly on the downside. ========= C H I N A ========= CHINA PROPERTIES: S&P Downgrades Corporate Credit Rating to 'B-' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on China-based property developer China Properties Group Ltd. to 'B-' from 'B'. The outlook is negative. At the same time, Standard & Poor's lowered the issue rating on China Properties' US$300 million 9.125% senior unsecured notes due 2014 to 'B-' from 'B'. All the ratings were removed from CreditWatch, where they were placed with negative implications on Sept. 24, 2008 due to uncertainty over the company's refinancing and weak liquidity. "We lowered the rating to reflect China Properties' vulnerable liquidity and a lack of visibility over the company's likely financial performance in 2009," said Standard & Poor's credit analyst Bei Fu. "We removed the ratings from CreditWatch because the company renewed a bank loan of approximately Hong Kong dollar 508 million for a further two years to mature in March 2011. Although S&P is not able to confirm whether there has been any major change in the loan terms, S&P believes the renewal alleviates imminent liquidity risk." S&P expects the company's liquidity to remain tight in 2009, given its limited projects for sale and low level of cash holdings relative to its daily operational and project development needs. The company could face greater difficulty in 2010 if construction and sales slow down. Its two Shanghai projects have limited gross floor area for sale, and S&P expects limited completions from its two Chongqing projects as construction only commenced recently. In addition to tight liquidity, the rating on China Properties reflects key-man risk, project concentration risk, and the competitive and cyclical nature of the Chinese real estate market. These risks are slightly tempered by the good location of its commercial projects and generally low-cost land bank. Currently, S&P has limited access to China Properties' management team. S&P's analysis is based on publicly available information. The negative outlook reflects: (1) China Properties' continued low cash balance; (2) uncertainty over bank support to carry out its property developments, both in Shanghai and Chongqing; and (3) execution risk for its two Chongqing projects. Chongqing is a competitive and fragmented market. As China Properties is newcomer with limited brand recognition in Chongqing, S&P believes it's questionable whether it can achieve its planned sales target--even though the property market seems to be warming up in China. HOPSON DEVELOPMENT: S&P Affirms 'BB-' Corporate Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that it had affirmed its 'BB-' long-term corporate credit rating on China-based property developer Hopson Development Holdings Ltd. The outlook is negative. At the same time, Standard & Poor's affirmed its 'B+' issue ratings on Hopson's US$350 million 8.125% notes due 2012 and on its convertible bond. All the ratings were removed from CreditWatch, where they had been placed with negative implications on Feb. 25, 2009. "We affirmed the ratings and removed them from CreditWatch due to signs that Hopson's liquidity is improving and its land acquisition activities have become less aggressive so far this year. The company recently raised equity of close to Hong Kong dollar 1.6 billion, which should support liquidity. The slowdown in land acquisitions since late last year has also helped to preserve cash," said Standard & Poor's credit analyst Bei Fu. The affirmed rating on Hopson also reflects S&P's opinion that the company's risk appetite, particularly regarding land expansion, has remained aggressive even though market conditions are as challenging as those in 2008. The company added 3.2 million square meters in gross floor area to its land bank in 2008. Many peers, in contrast, slowed down or suspended their land bank replenishment programs last year. The rating also reflects Hopson's relatively tight but improving liquidity, its weakened financial performance, and the cyclical and competitive nature of the Chinese real estate market, which has high regulatory risks. Hopson's financial metrics are weak for the rating category, as a result of lower sales and higher debt to support its aggressive growth in a challenging market. Despite price cuts, Hopson's average selling price and margin improved in 2008 as the company launched more high-end projects. However, its EBITDA interest coverage and ratio of debt to EBITDA weakened to 3.1x and 4.7x, respectively. S&P expects these ratios to improve in 2009 such that they remain consistent with a 'BB-' rating. The sector outlook remains uncertain for the second half of 2009, although sales and funding access have significantly improved this year for most large-scale Chinese developers. These weaknesses are somewhat tempered by Hopson's proven track record and well-known brand name, particularly in major tier-one cities, and its diverse revenue stream from a large number of saleable property projects. Sales were evenly distributed among its three key markets of Guangdong, Beijing and Shanghai in the first quarter of 2009. The negative outlook reflects the risk, in S&P's view, that Hopson's aggressive risk appetite could put further pressure on its liquidity and financial metrics, such that they may not be sufficient for the current rating level. The company's established market position and somewhat diversified development portfolio support the current rating. SHENZHEN DEV'T: Ping An to Buy Up to 30% Stake in Bank ------------------------------------------------------ Xinhua News Agency reports that China Ping An Insurance (Group), said that it planned to purchase stake worth up to a combined CNY22 billion (US$3.2 billion) in Shenzhen Development Bank. Citing Ping An in an online statement, the news agency says that the company had agreed to purchase up to 585 million new shares from Shenzhen Development Bank for CNY10.7 billion, or CNY18.26 per share. According to Xinhua, Ping An said it would also buy 520 million shares from the U.S.-based TPG's Asian arm Newbridge Capital for CNY11.45 billion by the end of 2010. Newbridge Capital is currently the top shareholder in Shenzhen Development Bank, Xinhua notes. Ping An, according to the news agency, would acquire no more than a 30 percent stake in Shenzhen Development Bank after the deal, and become the top shareholder instead. Reuters relates that shares in Shenzhen Development Bank rallied on Monday, June 15, after Ping An said it will increase its stake in the mid-sized lender to close to 30 percent, from the under 5 percent it holds. Ping An shares, however, rose to a lesser degree as some analysts deemed the deal expensive and not greatly value accretive to the insurer's banking aspirations, Reuters states. Reuters says Shenzhen Bank which has been seeking new funding to bolster its capital and meet regulatory requirements is expected to benefit from the deal. "The investment by Ping An, a new shareholder with strong financial strength, can bolster Shenzhen Bank's capital, enabling the lender to enter a phase of rapid growth," China International Capital Corp analyst Mao Junhua was quoted by Reuters as saying in a report. About Shenzhen Development Headquartered in Shenzhen, Guangdong, People's Republic of China, Shenzhen Development Bank Company Ltd.'s -- http://www.sdb.com.cn/-- provides local and foreign currency deposits and loan services. Other activities include foreign currencies exchanging, foreign currency deposit and remittances, acts as an agent for issuing foreign currency value-bearing securities, management of letters of credit and operation of both an international and a domestic discounting service. * * * As reported by the Troubled Company Reporter-Asia Pacific on Sept. 1, 2008, Moody's Investors Service upgraded Shenzhen Development Bank's (SZDB) bank financial strength rating (BFSR) from E+ to D-. At the same time, the rating agency upgraded the bank's long-term foreign currency deposit rating from Ba3 to Ba2; its short-term foreign currency deposit rating remains unaffected at Not-Prime. The outlook for all ratings is stable. XINHUA FINANCE: Moody's Withdraws 'B3' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service has withdrawn the B3 corporate family rating and Caa1 senior unsecured bond rating of Xinhua Finance Ltd. The ratings have been withdrawn for business reasons. Moody's last rating action with regard to XFL was taken on Oct. 24, 2008, when the company's corporate family and senior unsecured bond ratings were downgraded to B3 and Caa1 respectively. XFL's ratings had been assigned by evaluating factors Moody's believes are relevant to the company's credit profile, such as its i) business risk and competitive position compared with others within the industry; ii) capital structure and financial risk; iii) projected performance over the near to intermediate term; and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of XFL's core industry; its ratings are believed to be comparable to those of other issuers of similar credit risk. XFL is a provider of media services in China. ================ H O N G K O N G ================ CHINA LAW: Ho Wai Chi Steps Down as Liquidator ---------------------------------------------- On June 1, 2009, Ho Wai Chi stepped down as liquidator of China Law Council. GEORGE ZEE: Appoints Cheung Chui Ping Chaplin as Liquidator ----------------------------------------------------------- At an extraordinary general meeting held on June 5, 2009, the members of George Zee and Company, Limited appointed Cheung Chui Ping Chaplin as the company's liquidator. The Liquidator can be reached at: Cheung Chui Ping Chaplin Times Media Centre, 9th Floor 133 Wanchai Road Wanchai, Hong Kong INNOPRISE INVESTMENT: Placed Under Voluntary Wind-Up ---------------------------------------------------- At an extraordinary general meeting held on June 5, 2009, the members of Innoprise Investment (HK) Limited resolved voluntarily wind up the company's operations. The company's liquidators are: Natalia K M Seng Susan Y H Lo Three Pacific Place, Level 28 1 Queen's Road East Hong Kong KAWAMURA CO: Resets Creditors' Meeting to June 19 ------------------------------------------------- The annual meeting of Kawamura Co., Limited's creditors which was initially set for June 5, 2009, was adjourned to June 19, 2009, at 10:00 a.m., at Room 1005 of Allied Kajima Building, 138 Gloucester Road, in Wanchai, Hong Kong. At the meeting, the creditors will be asked to determine whether or not to accept certain accounts receivable to be bad debt. SENTROL LIFESAFETY: Chiu and Yuen Step Down as Liquidators ---------------------------------------------------------- On June 8, 2009, Ying Hing Chiu and Yeung Betty Yuen stepped down as liquidators of Sentrol LifeSafety China Limited. THE GOLD CLUB: Members to Receive Wind-Up Report on July 13 ----------------------------------------------------------- The members of The Gold Club Hong Kong Limited will receive on July 13, 2009, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator: Chu Wing Sze Jenny New Tech Plaza Room 2602-7, 26th Floor 34 Tai Yau Street San Po Kong, Kowloon ========= I N D I A ========= AIR INDIA: To Defer June Salary by 15 Days ------------------------------------------ The Financial Express reports that Air India Ltd will defer the payment of salaries for the month of June of about 30,000 employees by 15 days. The report relates that an AI spokesperson said that "the salaries of June will be paid on July 15 due to the resource crunch that the company is facing." Citing a previous report by The Financial Express, the Troubled Company Reporter-Asia Pacific said on June 10, 2009, that the National Aviation Company of India Ltd (Nacil), the company that operates Air India, is seeking Rs 14,000 crore in equity infusion, soft loans and grants. However, the Express related, the airline is unlikely to get the amount that it is seeking, and may have to settle for around US$1-1.5 billion (Rs 5,000-5,500 crore) as indicated by the government. "An equity infusion of up to Rs 1,500 crore, plus a soft loan of Rs 3,000-3,500 crore will be considered on a priority basis. There is no chance of the airline receiving a package of Rs 14,000 to 15,000-crore package," the Express quoted a very senior source in the civil aviation ministry as saying. The report disclosed that a hectic reworking of the capital restructuring possibilities is underway and is expected to be submitted by June 22. Civil aviation minister Praful Patel, according to the Express, had already said an initial public offering of shares in Air India could be considered in the near future. The report noted that any decision in this regard, however, will be considered once the markets revive. Though auditors are still vetting Nacil's 2008-09 accounts, the airline's losses are in the range of Rs 5,000 crore instead of the expected Rs 3,000 crore, the report said. Air India -- http://www.airindia.com/-- transports passengers throughout India and to more than 40 destinations throughout the world. Affiliate Air India Express operates as a low-fare carrier, mainly between India and destinations in the Middle East, and Air India Cargo provides freight transportation. The government of India has merged Air India with another state- controlled carrier, Indian Airlines, which has focused on domestic routes. The combined airline, part of a new holding company called National Aviation Company of India, uses the Air India brand. The new Air India and its affiliates have a fleet of more than 110 aircraft altogether. Air India and Indian Airlines posted a combined net loss of Rs.688 crore for the financial year ended March 2007, according to The Financial Express. AHMEDABAD PACKAGING: Low Net Worth Cues CRISIL 'BB' Ratings ----------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to the bank facilities of Ahmedabad Packaging Industries Ltd (Ahmedabad Packaging). INR48.0 Million Cash Credit Limit BB/Stable (Assigned) INR24.3 Million Term Loan BB/Stable (Assigned) INR9.6 Million Working Capital BB/Stable (Assigned) Demand Loan INR4.0 Million Letter of Credit P4/Stable (Assigned) INR8.0 Million Bank Guarantee P4/Stable (Assigned) The ratings reflect Ahmedabad Packaging's weak financial risk profile due to low net worth, and exposure to intense competition in the highly-fragmented, high-density polyethylene (HDPE) and polypropylene (PP) fabrics industry. These rating weaknesses are, however, partially offset by the benefits that Ahmedabad Packaging derives from its status as an established regional player, and its diversified product portfolio. Outlook: Stable CRISIL believes that Ahmedabad Packaging will maintain strong growth in sales backed by its promoters' experience, and its established customer base. The company's financial risk profile may, however, remain constrained by low net worth. The outlook may be revised to 'Positive' if the company's revenues, profitability and net worth improve substantially; or to 'Negative' if inability to maintain profit margins leads to lower-than-expected cash accruals. About Ahmedabad Packaging Incorporated in 1980 as a private limited company, Ahmedabad Packaging converted to a closely-held public limited company in 1994. The company manufactures a variety of PP and HDPE-woven fabric used in sacks and bags, and as packaging material. Its unit at Ahmedabad has capacity to manufacture 4800 tonnes per annum. Ahmedabad Packaging reported a profit after tax (PAT) of INR9.9 million on net sales of INR233 million for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of INR1.9 million on net sales of INR223.2 million for 2006-07. BALAJI SOURCINGS: CRISIL Puts 'BB+' Rating on INR50MM Cash Credit ----------------------------------------------------------------- CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank facilities of Balaji Sourcings Pvt Ltd (BSPL). INR50.0 Million Cash Credit BB+/Stable (Assigned) INR150.0 Million Letter of Credit P4(Assigned) The ratings reflect BSPL's small scale of operations and limited track record in chemical imports, and exposure to debtor and inventory risks relating to the trading business. These weaknesses are, however, partially offset by BSPL's satisfactory financial risk profile, marked by low gearing, and comfortable debt protection measures, and the benefits that the company derives from established supplier and customer relationships owing to association with Balaji Amines Ltd (BAL, rated 'BBB+/Stable/P2' by CRISIL) Outlook: Stable CRISIL expects BSPL to maintain a stable business risk profile, backed by its association with BAL. The outlook may be revised to 'Positive' if BSPL's net worth improves substantially, led by sustained improvement in profitability, or fresh equity infusions. Conversely, the outlook may be revised to 'Negative' if BSPL's capital structure deteriorates materially, led by debt-funded capital expenditure, decline in profitability, or devolvement of non-fund-based facilities. About Balaji Sourcings Incorporated in 2006, by Mr. D Ram Reddy, Mr. A Prathap Reddy, Mr. Vikas Shah and BAL, BSPL is a merchant importer of methanol and other key chemicals used by the pharmaceutical and agro- chemical industries. BSPL imports products from the Gulf countries, primarily Saudi Arabia, and sells them in India. The company has storage facilities in Mumbai and Kandla. BSPL reported a profit after tax (PAT) of INR5.4 million on net sales of INR459.5 million for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of INR1.1 million on net sales of INR129.1 million for 2006-07. CHAITANYA OILS: CRISIL Rates INR56.5 Mln Cash Credit Limit at 'B+' ------------------------------------------------------------------ CRISIL has assigned its rating of 'B+/Stable' to the cash credit limit facility of Chaitanya Oils Ltd (Chaitanya). INR56.5 Million Cash Credit Limit B+/Stable (Assigned) The rating reflects Chaitanya's weak financial risk profile marked by high gearing, weak debt protection measures, and declining revenues on account of sub-optimal capacity utilisation. The rating also factors in the company's small scale of operations in the edible oil and rice mill businesses. These weaknesses are partially offset by the benefits that Chaitanya derives from its diversified business profile, and its promoters' experience in the edible oil and rice mill businesses. Outlook: Stable CRISIL believes that Chaitanya will maintain a stable credit risk profile backed by its established relationships with its customers and suppliers. The outlook may be revised to 'Positive' if the company significantly improves its scale of operations, profitability, and debt protection measures. Conversely, the outlook may be revised to 'Negative' if Chaitanya's profit margins reduce significantly, or if it undertakes large, debt-funded capital expenditure. About Chaitanya Oils Incorporated in 1984 by Mr. Visweshwara Rao, Chaitanya manufactures crude rice bran oil, de-oiled bran cakes, and rice. Its manufacturing facility at Kurumadalli (Andhra Pradesh) has capacity to produce 54,000 tonnes per annum (TPA) of crude rice bran; it also has a rice mill with a capacity of 48,000 TPA. Chaitanya reported a profit after tax (PAT) of INR2.1 million on net sales of INR441.6 million for 2007-08 (refers to financial year, April 1 to March 31), as against a PAT of INR1.3 million on net sales of INR392.7 million for 2006-07. CT RAMANATHAN: CRISIL Assigns 'BB' Rating on INR5 Mln Term Loan --------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to the bank facilities of CT Ramanathan Infrastructure Pvt Ltd (CTR). INR5 Million Term Loan BB/Stable (Assigned) INR145 Million Cash Credit BB/Stable (Assigned) INR150 Million Proposed Cash BB/Stable (Assigned) Credit Facility INR150 Million Bank Guarantee P4 (Assigned) INR50 Million Proposed Bank P4 (Assigned) Guarantee Facility The ratings reflect CTR's weak financial risk profile marked by low net worth and high gearing, and exposure to risks relating to high customer and geographical concentration in its revenue profile. These weaknesses are partially offset by CTR's established track record in the civil construction business. Outlook: Stable CRISIL believes that CTR will maintain a stable business risk profile over the medium term on the back of its large order book position. The outlook may be revised to 'Positive' if the company improves its operating profitability, capital structure, and debt protection measures. Conversely, the outlook may be revised to 'Negative' if the company faces any time or cost overruns in its projects, or undertakes large, debt-funded capital expenditure. About CT Ramanathan CTR was set up in 1975 as a partnership firm engaged in civil construction work. It was converted to a private limited company in April 2008. For the past 10 years, the company has been executing contracts for Southern Railways for construction of station buildings, buildings for staff quarters, locomotive sheds, and bridges, besides engineering works such as gauge conversion and laying of new lines. CTR reported profit after tax (PAT) of INR11.5 million on net sales of INR396.8 million for 2007-08 (refers to financial year, April 1 to March 31), as against PAT of INR8.8 million on net sales of INR298.3 million for 2006-07. KINGFISHER AIRLINES: To Roll Over INR8 Billion Short Term Debt -------------------------------------------------------------- Kingfisher Airlines Ltd is looking to roll over INR8 billion of its short term debt, Reuters reports citing the Business Standard. According to Reuters, the Business Standard said the airline has short term debt of around INR25 billion and a third of that is due for repayment this fiscal. The Business Standard said the airline has a cumulative debt of close to INR60 billion and is leveraged around 13 times, Reuters relates. The paper, as cited by Reuters, said corporate loans of around INR25 billion are mainly secured against cash flows from the airline operations and is backed by a corporate guarantee from UB Holdings, which controls around 67 percent of Kingfisher Airlines. Meanwhile, The Wall Street Journal reports that Kingfisher denied a report on a possible equity partnership with Singapore Airlines Ltd. WSJ says that India's NDTV.com had earlier cited unnamed sources as saying the two airlines were in talks over a possible sale of a 25 percent to 26 percent stake in the Indian airline. Prakash Mirpuri, a spokesman for the UB Group, said the airline "denies the speculative media reports stating we are in talks with Singapore Airlines," WSJ relates. Kingfisher Airlines and other Indian carriers have been forced to cut flights, defer the delivery of new planes and consolidate among themselves to cut costs amid declining air travel demand in India, WSJ notes. Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/ -- formerly known as Deccan Aviation Ltd, serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known for its United Breweries unit, and the carrier shares the Kingfisher brand with a popular Indian beer. UB Holdings also owns a stake in another domestic carrier, Air Deccan, whose operations it combined with Kingfisher Airlines in mid-2008. Kingfisher Airlines began flying in 2005. * * * In the financial year ended June 30, 2007, Deccan Aviation reported a net loss of INR4.2 billion, up 23% from the INR3.41 billion loss incurred in FY 2006. In the financial year ended March 31, 2008, Kingfisher Airlines reported a net loss of INR1.89 billion. PATEL INTEGRATED: Fitch Assigns 'BB+' National Long-Term Rating --------------------------------------------------------------- Fitch Ratings has assigned Patel Integrated Logistics Limited a 'BB+(ind) National Long-term rating with a Stable Outlook. The agency has also assigned 'BB+(ind)' ratings to its long-term bank loans of INR7.5 million, to its cash credit limits of INR239 million and to its INR52 million financial lease obligations, as well as a 'F4(ind)' rating to its INR155 million non-fund based limits. The rating reflects the company's long track record, its diversified revenue streams, and market leadership in its courier consolidation business. PILL has a well-established network of franchisee offices across the country for its divisions through Patel Roadways and Patel on Board courier service. With most of its truck fleet hired on short-term contracts, PILL retains flexibility in the event of lower volumes which provides some margin protection. PILL currently has a fleet of 80 owned and 250-300 hired trucks. Fitch further notes that the company has upgraded its trans-shipment centres in anticipation of increased volumes from its retail business, although the benefits have yet to materialize. Fitch expects these benefits to materialize over the longer term, given the current pressure on costs and retail volumes. The ratings are constrained by thin EBITDA margins due to high competition from the unorganized segment and low utilization levels across the logistics sector, as well as increased working capital requirements for its POBC segment. Working capital pressures have risen in the form of higher receivables and shorter credit periods from suppliers (primarily airlines), which has put pressure on PILL's operating liquidity. Also, in FY09 there was a drop in EBITDA margins to 3.8% (FY08: 4.5%) due to increased competition and limited demand, while interest cover (EBITDA/Interest) declined due to higher utilization of debt limits to meet working capital requirements. The agency expects that these pressures are likely to continue over the near term, until economic conditions improve. The ratings are also constrained by the cyclicality of the company's business, whereby volumes and margins are linked to the economic cycles. In the current economic environment characterized by slowing growth rates, Fitch believes that the company's operating metrics and liquidity will remain under pressure over the near term. Enhancements in PILL's bank facilities to cover the working capital pressure will be essential in maintaining its ratings, while further liquidity stress leading to interest cover below 1.5x or net debt/EBITDA above 3.5x can act as downward rating triggers. PILL is the merged entity of PRL and POBC. It is in the business of surface transportation and door-to-door retail cargo transportation and courier/cargo consolidation that involve domestic and international air transportation of courier/cargo consignments of courier companies. In FY09 PILL's revenue declined yoy 3.7% to INR2814.8 million, EBITDA margins declined to 3.8% in FY09 from 4.5% in FY08 and net leverage declined to 2.2x in FY09 from 1.4x in FY08. The interest cover was at 2.1x in FY09 (FY08: 3.3x). RITESH EXPORT: Weak Financial Risk Profile Cues CRISIL 'P4' Rating ----------------------------------------------------------------- CRISIL has assigned its rating of 'P4' to the bank facilities of Ritesh Export. INR122.00 Million Packing Credit P4 (Assigned) INR278.00 Million Post Shipment P4 (Assigned) Credit INR80.00 Million Line of Credit P4 (Assigned) The rating reflects Ritesh Export's weak financial risk profile, limited competitiveness due to lack of sight-holder status, and exposure to risks relating to intense competition in the diamond cutting and polishing business. The impact of these weaknesses is mitigated by the promoters' experience in the business. About Ritesh Export Established as a partnership firm in 1986, Ritesh Export processes and trades in diamonds. The firm's manufacturing facility in Surat employs 150 workers, and has capacity to process 105,000 pieces of diamond every month. Due to lack of sight-holder status, the firm procures rough diamonds from sight holders; the rough diamond is cut into shapes and sizes, and polished at the firm's unit. The exports are primarily to South-East Asia and Europe. Ritesh Export reported a profit after tax of INR53.29 million on net revenues of INR1.54 billion for 2008-09 (refers to financial year, April 1 to March 31), against INR28.8 million and INR1.22 billion in the previous financial year. SUBBURAJ COTTON: Delays in Loan Payment Prompts CRISIL 'D' Ratings ------------------------------------------------------------------ CRISIL has assigned its ratings of 'D/P5' to the bank facilities of Subburaj Cotton Mills Pvt Ltd (Subburaj Cotton). This is because the company has delayed its term loan obligations, owing to weak liquidity. Subburaj Cotton has approached the banks for restructuring the term loan instalments, which is still pending approval. The company has not paid the term loan instalments from February 2009. INR460.70 Million Long Term Loan D (Assigned) INR267.50 Million Cash Credit D (Assigned) INR10.00 Million Overdraft Facility D (Assigned) INR5.00 Million Line of Credit D (Assigned) INR40.00 Million Bank Guarantee P5 (Assigned) About Subburaj Cotton Established in 1980 as a partnership firm by Mr. K Venkadaswamy, Subburaj Cotton was converted to a private limited company in 1995. It manufactures cotton yarn, and has capacity of 65,000 spindles. For 2007-08 (refers to financial year, April 1 to March 31), Subburaj Cotton reported a profit after tax (PAT) of INR14.3 million on net sales of INR800.2 million, as against a PAT of INR53 million on net sales of INR660 million for 2006-07. ================= I N D O N E S I A ================= TELEKOMUNIKASI: To Secure Loan and Issue Bonds to Finance Capex --------------------------------------------------------------- PT Telekomunikasi Indonesia (Telkom) will next week ink a loan agreement worth IDR2 trillion with Bank Rakyat Indonesia, Bank Negara Indonesia and the Government Investment Center, to finance part of the company's capital expenditure (capex) this year, The Jakarta Post reports citing Telkom finance director Sudiro Asno as saying after an annual meeting of the company's shareholders on Friday. The report, citing Telkom president director Rinaldi Firmansyah, says the company would use its internal cash reserves to finance up to 70 percent of the proposed capex while the remaining 30 percent, would be mobilized from bank loans. Moreover, to support Telkom's capex, the company is also planning to issue IDR3-trillion rupiah-denominated bonds by the end of this year or early 2010, the report adds. About PT Telkom Indonesia Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. * * * P.T. Telekomunikasi Indonesia Tbk continues to carry 'BB' Long- term foreign and local currency Issuer Default ratings from Fitch Ratings with stable outlook. The ratings were affirmed by Fitch in November 2008. TELEKOMUNIKASI: To Pay Shareholders 55% of Profit for Dividend -------------------------------------------------------------- During the annual meeting of PT Telekomunikasi Indonesia's (Telkom) shareholders held last Friday, the company approved to allocate 55 percent of last year's net profit for dividends, The Jakarta Post reports. According to The Post, the company will pay dividends worth IDR5.84 trillion in total, or about IDR296.94 a share, to its shareholders on July 27, 2009. About PT Telkom Indonesia Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. * * * P.T. Telekomunikasi Indonesia Tbk continues to carry 'BB' Long- term foreign and local currency Issuer Default ratings from Fitch Ratings with stable outlook. The ratings were affirmed by Fitch in November 2008. ========= J A P A N ========= ASTRA ALPHA: S&P Raises Ratings on 2005-01 Notes from 'CCC' ----------------------------------------------------------- Standard & Poor's Ratings Services raised to 'AA' from 'CCC' its rating on Astra Alpha Ltd.'s series 2005-01 credit-linked notes, issued in December 2005. The upgrade reflects an increase in the transaction's credit enhancement after a noteholder's option was exercised. Rating Raised Astra Alpha Ltd. Multi-issuer obligation programme series 2005-01 credit-linked notes To From Issue amount Legal Final Maturity -- ---- ------------ -------------------- AA CCC JPY15.0 bil. September 2009 The transaction's closing date was Dec. 6, 2005. ASYST TECHNOLOGIES: Can't File Quarterly Report on Time ------------------------------------------------------- Steve Debenham, senior vice president, general counsel and secretary of Asyst Technologies, Inc., disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that the company is unable to file timely its Form 10-K for its fiscal year ended March 31, 2009, without unreasonable effort or expense, due primarily to the United States bankruptcy and Japanese reorganization proceedings, associated lack of financial and other resources necessary to prepare the Form 10-K, and the inability of the company to obtain and prepare financial information on a consolidated basis and in accordance with generally accepted accounting principles that includes its Japanese subsidiaries. Mr. Debenham relates that Asyst's common stock may have no future value and may be cancelled in connection with the bankruptcy proceeding. "Asyst does not currently expect that it will reorganize and continue as a publicly traded company after completion of the bankruptcy proceedings." Mr. Debenham adds that Asyst is not able to estimate the anticipated change in results of operations on a consolidated basis in accordance with generally accepted accounting principles. Asyst believes it is unlikely that it will be able to report results of operations on a consolidated basis for the fiscal year ending March 31, 2009. Headquartered in Fremont, California, Asyst Technologies, Inc. -- http://www.asyst.com/-- makes, sells and supports integrated hardware and software systems primarily for semiconductor and flat panel display manufacturing industries. The Company filed for Chapter 11 on April 20, 2009 (Bankr. N.D. Calif. Case No. 09-43246). Ali M.M. Mojdehi, Esq., at the Law Offices of Baker and McKenzie, represents the Debtor in its restructuring efforts. As of December 31, 2008, the Debtor reported total assets of $295,782,000 and total debts of $315,364,000. The company's Japanese subsidiaries, Asyst Technologies Japan Holdings Company, Inc., and Asyst Technologies Japan, Inc., entered into related voluntary proceedings under Japan's Corporate Reorganization Law (Kaisha Kosei Ho) on April 20, 2009. CAFES 2: Fitch Downgrades Ratings on Class E Notes to 'BB' ---------------------------------------------------------- Fitch Ratings has downgraded Cafes 2 Trust's Class D and E Trust Beneficiary Interests due August 2013 and placed both classes on Rating Watch Negative. The remaining classes have been affirmed and Outlooks assigned: -- JPY5.49 billion* Class A TBIs affirmed at 'AAA'; Outlook Stable; -- JPY1.5 billion* Class B TBIs affirmed at 'AA'; Outlook Stable; -- JPY1.45 billion* Class C TBIs affirmed at 'A'; Outlook Negative; -- JPY0.96 billion* Class D TBIs downgraded to 'BBB-' from 'BBB'; placed on RWN; -- JPY0.16 billion* Class E TBIs downgraded to 'BB' from 'BBB'; placed on RWN; and -- Dividends-only Class X TBIs affirmed at 'AAA'; Outlook Stable. * as of June 11, 2009 The rating actions reflect Fitch's revised view on the expectation of recovery from the loan that defaulted on its maturity date in May 2009. The defaulted loan is backed by 14 properties, mainly residential, whose performance to date has generally been in line with the agency's expectations. However, if the properties are to be sold in the current distressed real estate market, sales prices could be subject to strong downward pressure. At this point, Fitch considers the full recovery of the outstanding amount on the defaulted loan can be reasonably assumed. However, the default risk of the Class E TBIs is viewed to have elevated compared to the agency's initial analysis and Fitch has therefore downgraded the Class E TBIs to 'BB' from 'BBB'. The Class D TBIs were downgraded to 'BBB-' on concern that credit enhancement levels could deteriorate under stressed collection scenarios. Furthermore, the agency has placed both classes on RWN to reflect the possibility that it may change its view on the likelihood of full loan recovery, depending on the servicer's collection activities and progress made on the defaulted loan. In addition, another loan is due to mature in July 2009. Fitch will resolve the RWN status once it has reviewed further information of these loans to be provided by the servicer. Since credit enhancement levels have substantially improved on the back of repayment of other underlying loans since closing, Classes A to C TBIs and Class X TBI have been affirmed. However, the Negative Outlook assigned to the Class C TBIs reflects the agency's general concerns about the current real estate market and the availability of finance. The TBIs were issued in October 2006, and the transaction was initially a securitization of nine loans backed by 29 property and property TBIs. Four loans have been fully repaid to date, and the transaction is currently backed by 20 property TBIs. Rating Outlooks have been published for all newly issued Asia Pacific Structured Finance tranches since June 2008, and concurrently with rating actions for tranches issued prior to June 2008. Unlike a Rating Watch which notifies investors there is a reasonable probability of a rating change in the short term as a result of a specific event, rating Outlooks indicate the likely direction of any rating change over a one- to two-year period. CAFES 3: Moody's Cuts Ratings on Three Classes of Certificates -------------------------------------------------------------- Moody's Investors Service has changed the ratings for the Class A through F and X trust certificates issued by Cafes 3. The final maturity of the trust certificates will take place in August 2014. The individual rating actions are listed below. -- Class A, Confirmed at Aaa; previously, Aaa Placed Under Review for Possible Downgrade on April 14, 2009 -- Class B, Downgraded to Aa3 from Aa2; previously, Aa2 Placed Under Review for Possible Downgrade on April 14, 2009 -- Class C, Downgraded to A3 from A2; previously, A2 Placed Under Review for Possible Downgrade on April 14, 2009 -- Class D, Downgraded to Ba1 from Baa2; previously, Baa2 Placed Under Review for Possible Downgrade on April 14, 2009 -- Class E, Downgraded to B2 from Baa3; previously, Baa3 Placed Under Review for Possible Downgrade on April 14, 2009 -- Class F, Downgraded to B2 from Ba2; previously, Ba2 Placed Under Review for Possible Downgrade on April 14, 2009 -- Class X, Confirmed at Aaa; previously, Aaa Placed Under Review for Possible Downgrade on April 14, 2009 Cafes 3, effected in November 2007, represents the securitization of six non-recourse loans and four specified bonds (collectively, "Loan"). One of the non-recourse loans has been paid in full, and the transaction is currently secured by nine Loans backed by 19 properties. Moody's has updated its key surveillance assumptions for the monitoring of Japanese CMBS ratings and on April 14, 2009, started reviewing for possible downgrade 228 tranches in 50 Japanese CMBS deals. As a result, the number of tranches on review for possible downgrade comes to 339, in 57 deals -- including deals that had already been on review for possible downgrade. This is one of the transactions that had been placed under review because of the update. In light of Japan's current liquidity crisis, Moody's is concerned that refinancing possibilities for existing CMBS borrowers are declining precipitously, and that real estate prices will remain stressed. Moody's is thus applying higher stress to its recovery assumptions for those loans that are more likely to default than in normal market conditions. To incorporate this influence into its CMBS ratings, Moody's has classified all CMBS loans into three categories -- plus special servicing loans -- according to the likelihood of refinancing. Moody's has also re-evaluated recovery assumptions for other loans that are not characterized as having a high likelihood of default, depending on a necessity based on collateral performance such as rents and occupancy rates. Category 1 Loans 0% of the loan pool Moody's considers these loans as having a high likelihood of refinancing based on (1) the sponsor's characteristics, (2) the quality of the collateral, and (3) the amount of leverage. Category 2 Loans 39% of the loan pool Moody's considers these loans as having a high likelihood of default, based on the sponsor's characteristics and the short period until maturity. Category 3 Loans 61% of the loan pool These are loans that do not fit the criteria for Categories 1 and 2. Special Servicing Loans 0% of the loan pool Moody's received relevant information such as PM reports and rent rolls. Accordingly, Moody's estimated recovery stress in the range of 11% to 21% and 15% for the weighted average (excluding the specially serviced loans), in light of these factors. 1) Rents and occupancy rates, among others, for some of properties are less than originally assumed. 2) 6% of the Loans is a liquidating loan. The rating actions reflect the changes made to Moody's scenario, which take into the account the progress of property disposition as well as the types of property. GODO KAISHA: Moody's Changes Ratings on Class B to D Notes ---------------------------------------------------------- Moody's Investors Service has changed the ratings for the Class B through D Notes issued by Godo Kaisha JLOC36,. The notes will mature in February 2016. The individual rating actions are listed below. -- Class B, confirmed at Aa2; previously, Aa2 placed under review for possible downgrade on April 14, 2009 -- Class C1 and Class C2, downgraded to Baa1 from A2; previously, A2 placed under review for possible downgrade on January 16, 2009 -- Class D, downgraded to Caa1 from B2; previously, downgraded to B2 from Baa2 and placed under review for possible downgrade on April 28, 2009 JLOC36, effected in May 2007, represents the securitization of 34 non-recourse loans. Moody's has updated its key surveillance assumptions for the monitoring of Japanese CMBS ratings and on April 14, 2009, started reviewing for possible downgrade 228 tranches in 50 Japanese CMBS deals. As a result, the number of tranches on review for possible downgrade comes to 339, in 57 deals -- including deals that had already been on review for possible downgrade. This is one of the transactions that had been placed under review because of the update. In light of Japan's current liquidity crisis, Moody's is concerned that refinancing possibilities for existing CMBS borrowers are declining precipitously, and that real estate prices will remain stressed. Moody's is thus applying higher stress to its recovery assumptions for those loans that are more likely to default than in normal market conditions. To incorporate this influence into its CMBS ratings, Moody's has classified all CMBS loans into three categories -- plus special servicing loans -- according to the likelihood of refinancing. Moody's has also re-evaluated recovery assumptions for other loans that are not characterized as having a high likelihood of default, based on collateral performance such as rents and occupancy rates. Category 1 Loans 0% of the loan pool Moody's considers these loans as having a high likelihood of refinancing based on (1) the sponsor's characteristics, (2) the quality of the collateral, and (3) the amount of leverage. Category 2 Loans 17% of the loan pool Moody's considers these loans as having a high likelihood of default, based on the sponsor's characteristics and the short period until maturity. Category 3 Loans 69% of the loan pool These are loans that do not fit the criteria for Categories 1 and 2. Special Servicing Loans 14% of the loan pool Moody's received relevant information such as PM reports and rent rolls. Accordingly, recovery stress ranges from 8% to 23% and is estimated at 14% for the weighted average (excluding the specially serviced loans), reflecting these factors. 1) Five loans are now classified as "Specially Serviced Loans." Given the location and type of properties, recovery of these loans will likely be hampered by the stressed environment for the commercial real estate market. 2) Rents and occupancy rates, among others, for some of properties are less than originally assumed. ELPIDA MEMORY: Taiwan Memory Plans to Buy Less 10% Stake in Firm ---------------------------------------------------------------- Taiwan Memory Co., a memory-chip company set up by the Taiwan government, plans to buy "less than" a 10 percent stake in Japan's Elpida Memory Inc., Chinmei Sung at Bloomberg News reports citing a government official. "The investment will take place after the venture is formed, possibly in September," Bloomberg News quoted Woody Duh, head of the Industrial Development Bureau in Taiwan's Ministry of Economic Affairs, as saying. Mr. Duh said Taiwan Memory plans to submit its business plan to the National Development Fund for less than NT$10 billion (US$305 million) of startup capital next month, the report relates. As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2009, Bloomberg News said Elpida may consider selling a stake of about 10 percent to Taiwan Memory after the state-led semiconductor company named it as its technology partner. Elpida is considering a private stock placement and may ask Taiwan Memory to underwrite preferred shares and loans, Kumi Higuchi, an Elpida spokeswoman, told Bloomberg News by telephone. Taiwan Memory, which was set up by the island's government to rescue the country's US$23.6 billion industry, will develop dynamic random access memory with Elpida and will jointly own intellectual property rights to new technologies, the Troubled Company Reporter-Asia Pacific reported on April 3, 2009, citing the Bloomberg News. 5th Quarterly Loss As reported in the TCR-AP on Feb. 10, 2009, Elpida posted its fifth straight quarterly loss after "an accelerated fall in consumer spending, manufacturing adjustments and higher rates of unemployment resulting from the intensified financial crisis worsened global economy drastically in the third quarter." The company's net loss for the third quarter ended Dec. 31, 2008, widened to JPY72.3 billion (US$795 million) from JPY12.1 billion in the same period in 2007. Sales dropped 34 percent to JPY61.8 billion from JPY94.0 billion. The company incurred gross losses of JPY42.9 billion (compared with an JPY8 billion loss in the previous quarter) and operating losses of JPY57.9 billion (a JPY24.5 billion yen loss in the previous quarter) since selling prices continued to run well below manufacturing costs and the yen grew stronger, Elpida said in a Feb. 6 statement. Ordinary losses came to JPY66.1 billion (a JPY30.3 billion loss in the previous quarter) partly due to equity method investment losses of JPY7.4 billion that mainly concerned Rexchip Electronics Corporation ("Rexchip"). An extraordinary loss of JPY5.4 billion in connection with an accrued provision to cover litigation settlement costs was a factor in a net loss of JPY72.3 billion (a JPY31.9 billion loss in the previous quarter). Rating Downgrade As reported in the TCR-Asia Pacific on Feb. 23, 2009, Standard & Poor's Ratings Services lowered to 'B+' from 'BB-' its long-term corporate credit and senior unsecured ratings on Elpida Memory Inc., and placed the ratings on CreditWatch with negative implications. According to the rating agency, the downgrade and CreditWatch placement reflect the material weakening of the company's financial soundness, due to continued losses stemming from deteriorating market conditions and uncertainty over the company's short-term liquidity. About Elpida Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a Japan-based company principally engaged in the development, design, manufacture and sale of semiconductor products, with a focus on dynamic random access memory (DRAM) silicon chips. The main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile RAM and XDR DRAM, among others. The Company distributes its products to both domestic and overseas markets, including the United States, Europe, Singapore, Taiwan, Hong Kong and others. The company has eight subsidiaries and two associated companies. L-JAC6 TRUST: Moody's Changes Ratings on Various Certificates ------------------------------------------------------------- Moody's Investors Service has changed the ratings for the Class B- 1 through G-1 trust certificates issued by L-JAC6 Trust. The final maturity of the trust certificates will take place in October 2016. The individual rating actions are listed below. -- Class B-1, confirmed at Aa2; previously, Aa2 placed under review for possible downgrade on April 14, 2009 -- Class C-1, downgraded to A3 from A2; previously, A2 placed under review for possible downgrade on April 14, 2009 -- Class D-1, downgraded to Baa3 from Baa2; previously, Baa2 placed under review for possible downgrade on April 14, 2009 -- Class E-1, downgraded to Ba2 from Baa3; previously, Baa3 placed under review for possible downgrade on April 14, 2009 -- Class F-1, downgraded to Ba3 from Ba1; previously, Ba1 placed under review for possible downgrade on April 14, 2009 -- Class G-1, downgraded to B1 from Ba2; previously, Ba2 placed under review for possible downgrade on April 14, 2009 L-JAC6 Trust, effected in November 2007, represents the securitization of two non-recourse loans. Moody's has updated its key surveillance assumptions for the monitoring of Japanese CMBS ratings and on April 14, 2009, started reviewing for possible downgrade 228 tranches in 50 Japanese CMBS deals. As a result, the number of tranches on review for possible downgrade comes to 339, in 57 deals -- including deals that had already been on review for possible downgrade. This is one of the transactions that had been placed under review because of the update. In light of Japan's current liquidity crisis, Moody's is concerned that refinancing possibilities for existing CMBS borrowers are declining precipitously, and that real estate prices will remain stressed. Moody's is thus applying higher stress to its recovery assumptions for those loans that are more likely to default than in normal market conditions. To incorporate this influence into its CMBS ratings, Moody's has classified all CMBS loans into three categories -- plus special servicing loans -- according to the likelihood of refinancing. Moody's has also re-evaluated its recovery assumptions for other loans that are not characterized as having a high likelihood of default, based on collateral performance such as rents and occupancy rates. Category 1 Loans 0% of the loan pool Moody's considers these loans as having a high likelihood of refinancing based on (1) the sponsor's characteristics, (2) the quality of the collateral, and (3) the amount of leverage. Category 2 Loans 84% of the loan pool Moody's considers these loans as having a high likelihood of default, based on the sponsor's characteristics and the short period until maturity. Category 3 Loans 16% of the loan pool These are loans that do not fit the criteria for Categories 1 and 2. Special Servicing Loans 0% of the loan pool Moody's received relevant information such as PM reports and rent rolls. Accordingly, Moody's estimated recovery stress in the range of 7% to 12% and 11% for the weighted average in light of these factors. 1) 84% of the loan portfolio will mature in 2010. Loans that will need to be refinanced in a stressed market account for a higher percentage of the loan pool. MEDCA JAPAN: JCR Withdraws "BB-" Rating on Senior Debts ------------------------------------------------------- Japan Credit Rating Agency Ltd. ("JCR") has withdrawn the #BB-/Negative rating on senior debts of Medca Japan Co. Ltd. at the request of the company. Medca Japan Co. Limited is a Japan-based company mainly engaged in the medical business. The company operates in four business segments. The Nursing Care segment provides home care services, as well as operates and maintains care centers and long-stay centers. The Clinical Examination segment is engaged in the provision of clinical examinations, as well as the collection and distribution of blood and urinal examination materials. The Product Sales segment offers medical equipment and consumable medical supplies to nursing care and medical institutions. The Others segment is involved in the leasing of real estate; the provision of medical waste transportation from medical institutions; the operation and management of hotels and hot springs, as well as the operation and management of condominiums for elderly people. Headquartered in Saitama Prefecture, the company has nine subsidiaries and six associated companies. ORSO FUNDING: Moody's Changes Ratings on Various 2005-2 Certs. -------------------------------------------------------------- Moody's Investors Service has changed the ratings for the Class B through G Trust Certificates issued by Orso Funding CMBS 2005-2 Trust. The final maturity of the trust certificates will take place in July 2012. The individual rating actions are listed below. -- Class B, confirmed at Aa2; previously, Aa2 placed under review for possible downgrade on April 14, 2009 -- Class C, downgraded to A3 from A2; previously, A2 placed under review for possible downgrade on April 14, 2009 -- Class D, downgraded to Baa3 from Baa2; previously, Baa2 placed under review for possible downgrade on April 14, 2009 -- Class E, downgraded to Ba3 from Ba2; previously, Ba2 placed under review for possible downgrade on April 14, 2009 -- Class F, downgraded to B1 from Ba3; previously, Ba3 placed under review for possible downgrade on April 14, 2009 -- Class G, downgraded to B2 from B1; previously, B1 placed under review for possible downgrade on April 14, 2009 Orso Funding CMBS 2005-2 Trust, effected in July 2005, represents the securitization of non-recourse loans and specified bonds to seven borrowers. The transaction is currently secured by two non- recourse loans. Moody's has updated its key surveillance assumptions for the monitoring of Japanese CMBS ratings and on April 14, 2009, started reviewing for possible downgrade 228 tranches in 50 Japanese CMBS deals. As a result, the number of tranches on review for possible downgrade comes to 339, in 57 deals -- including deals that had already been on review for possible downgrade. This is one of the transactions that had been placed under review because of the update. In light of Japan's current liquidity crisis, Moody's is concerned that refinancing possibilities for existing CMBS borrowers are declining precipitously, and that real estate prices will remain stressed. Moody's is thus applying higher stress to its recovery assumptions for those loans that are more likely to default than in normal market conditions. To incorporate this influence into its CMBS ratings, Moody's has classified all CMBS loans into three categories -- plus special servicing loans -- according to the likelihood of refinancing. Moody's has also re-evaluated recovery assumptions for other loans that are not characterized as having a high likelihood of default, depending on a necessity based on collateral performance such as rents and occupancy rates. Category 1 Loans 0% of the loan pool Moody's considers these loans as having a high likelihood of refinancing based on (1) the sponsor's characteristics, (2) the quality of the collateral, and (3) the amount of leverage. Category 2 Loans 100% of the loan pool Moody's considers these loans as having a high likelihood of default, based on the sponsor's characteristics and the short period until maturity. Category 3 Loans 0% of the loan pool These are loans that do not fit the criteria for Categories 1 and 2. Special Servicing Loans 0% of the loan pool Moody's received relevant information such as PM reports and rent rolls. Accordingly, Moody's estimated recovery stress in the range of 8% to 10% and 9% for the weighted average, in light of these factors. 1) Given stressed environment for the commercial real estate market, the properties are likely to be less attractive to potential buyers in terms of property type and location. 2) 100% of the loan portfolio will mature in 2010. Loans that will need to be refinanced in a stressed market account for a higher percentage of the loan pool. 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. * JAPAN: Two Securities Firms Go Under, Sell Unlisted Shares ------------------------------------------------------------ Two unregistered securities firms in Tokyo have gone under after selling unlisted shares for about JPY20 billion to several thousand investors nationwide since 2003, Kyodo News reports citing lawyers and former employees of the brokerage houses. According to the report, the lawyers and former employees said that the two firms and their affiliates solicited purchases of unlisted shares in various venture companies over the phone, saying the shares would be listed and their prices would go up in the future. Those who purchased the shares suffered massive losses because none of the stocks were listed, they said. The lawyers and former employees, as cited by the news agency, said the two securities firms were established in 2003 by the same person and headquartered in the same building in Tokyo's Minato Ward, with branch offices located in Sendai, Osaka and Fukuoka. One of the companies continued operations until around 2006 but can no longer be found in the building where its headquarters is registered, while the other one has been undergoing bankruptcy procedures since May, Kyodo News says. =============== M A L A Y S I A =============== PECD BERHAD: Perkasa Sutera Serves Windup Petition Against Unit --------------------------------------------------------------- PECD Berhad said a winding up petition has been served against PECD Jaya Engineering Sdn. Bhd. by Perkasa Sutera Sdn. Bhd. PECD Jaya Engineering Sdn. Bhd. is a 70 percent subsidiary of PECD Jaya Holdings Sdn. Bhd., which is a wholly owned subsidiary of the company. On February 27, 2009, PECD Berhad discloses, PECD Jaya received a notice from Perkasa Sutera's solicitors, Messrs. Shearn Delamore & Co., demanding payment of MYR1,725,613.97 being monies allegedly due and owing vide a judgement dated May 26, 2008, in Kuala Lumpur High Court Civil Suit No. D1-22-1170-2007. The winding up petition was presented at the Shah Alam High Court MT5-28-70-2009 on March 24, 2009. The winding up petition is fixed for hearing on July 21, 2009. PECD Berhad's total costs of investment in PECD Jaya is MYR2,000,002.00. Most debts accumulated by PECD Jaya Engineering are largely owed by PECD Jaya and its associated company, Arif Cerah Sdn. Bhd. ("ACSB"). ACSB is the wholly-owned subsidiary of PECD Jaya and a winding-up order has been made against ACSB and the Official Receiver has been appointed as the liquidator. ACSB together with PECD Jaya has filed suit against Putrajaya Holdings Sdn. Bhd. for amount due and owing under Precinct 11 development. About PECD Berhad PECD Berhad is engaged in investment holding and provision of management services. The company operates in four business segments: construction, EPCC oil and gas, property development and others. Its wholly owned subsidiaries include Peremba Construction Sdn. Bhd., which is engaged in general construction and investment holding and Wong Heng Engineering Sdn. Bhd., which is engaged in investment holding and engineering, procurement, construction and commissioning emphasizing in the oil and gas, as well as the power sectors. PECD Berhad's 70%- owned subsidiary is Peremba Jaya Holdings Sdn. Bhd., which is engaged in property development, construction and investment holding. * * * The Troubled Company Reporter-Asia Pacific reported on March 7, 2008, that the company was classified as an Affected Listed Issuer under Practice Note No. 17/2005 of the Listing Requirements of Bursa Malaysia Securities Berhad, since the company's shareholders' equity deficit reached MYR914.9 million as at December 31, 2007. RANHILL BERHAD: To Hold Extraordinary General Meeting on June 25 ---------------------------------------------------------------- Ranhill Berhad will hold an extraordinary general meeting on June 25, 2009, at 2:30 p.m., at Concorde Ballroom, Lobby Level, Concorde Hotel Kuala Lumpur, No. 2 Jalan Sultan Ismail, in Kuala Lumpur. At the meeting, the members will be asked to: -- approve the proposed disposal by SAJ Holdings Sdn Bhd, an indirect subsidiary of Ranhill Berhad, of its water assets and corresponding liabilities to Pengurusan Aset Air Berhad, a company wholly owned by the Minister of Finance Incorporated pursuant to the National Water Services Industry Restructuring Initiatives; and -- approve new shareholders' mandate for additional recurrent related party transactions of a revenue or trading nature. About Ranhill Berhad Ranhill Berhad is a Malaysia-based company. The company is engaged in the business of investment holding, provision of management services to its subsidiaries, and provision of engineering, procurement and construction services. It is engaged in the provision of engineering and construction services, as well as asset management and ownership, with focus on power, utilities and other infrastructure and resource assets. It has also undertaken oil and gas exploration, development and production activities. Ranhill Berhad is organized into four business segments: EPC & EPCM/PMC, power generation, transmission and distribution, water and others. In January 2008, the company acquired a dormant company, Ranhill Global Systems Sdn Bhd, making it a wholly owned subsidiary of the company. On June 20, 2008, the company disposed its entire equity interest in Bumi Parahyangan Ranhill Energi Citarum Pte Ltd and BPE became a 72.72% subsidiary of the Company through West Java Energy Pte Ltd (WJE). * * * As reported by the Troubled Company Reporter-Asia Pacific on March 26, 2009, Fitch Ratings affirmed Ranhill Berhad's Long-term foreign currency Issuer Default rating at 'B'. The Outlook is Stable. At the same time, the agency has affirmed the 'B-' (B minus) senior unsecured rating on the US$220 million notes due 2011 issued by Ranhill (L) Limited and guaranteed by Ranhill and its subsidiaries. On Dec. 11, 2008, the TCR-AP reported that Standard & Poor's Rating Services affirmed the 'B' corporate credit rating on Malaysia-based Ranhill Bhd and removed it from CreditWatch with negative implications. The outlook is negative. RHYTHM CONSOLIDATED: Penang Dev't. Okays Proposed Asset Disposal ---------------------------------------------------------------- AmInvestment Bank, on behalf of Rhythm Consolidated Berhad, disclosed that the Penang Development Corporation had no objection to the transfer of the property to UPP Paper Industries Sdn Bhd. The proposed disposal of the property, comprising of a piece of land held under HS(d) No. 16472, Lot No. 3839 (previously known as Lot No. PT 184), Mukim 13, Daerah Seberang Perai Tengah, Negeri Pulau Pinang together with an industrial complex erected, to UPP Paper for a cash consideration of MYR7 million is subject to final approval of the State Authority (Pihak Berkuasa Negeri) and the Department Of Environment (Jabatan Alam Sekitar). Based in Malaysia, Rhythm Consolidated Bhd is an investment holding company. The Company operates in five business segments: publishing, trading and distribution of books, paper stationery, printing paper and instruction manuals; manufacturing of music books, novels, educational books and paper stationery; import, wholesale and retail of paper products; marketing of diaries, organizers, leather and polyvinyl chloride (PVC) folders, wallets, bags, rain coats and others, and information and communication technology, which includes credit cards terminal development and solutions, and system application developer and system support. During the fiscal year ended June 30, 2007 (fiscal 2007), the Company acquired an additional 15% of interest in its associated company namely, Rhythm ICT Services Sdn. Bhd., formerly known as IQ Card Services Sdn Bhd, (ICT). As a result, the Company owns 55% interest in ICT, and ICT became a subsidiary of the Company. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 1, 2009, Rhythm Consolidated Berhad was considered as an Affected Listed Issuer under Practice Note No. 17/2005 of the Bursa Malaysia Securities Berhad as the company was unable to provide a solvency declaration to Bursa as per the announcement of default in payment by Monosetia Sdn Bhd. RHYTHM CONSOLIDATED: Reconciles Deviation of Financial Results ----------------------------------------------------------- Rhythm Consolidated Berhad advised Bursa Malaysia Securities Berhad that there was a variance of more than 10 percent in the unaudited fourth quarterly report ended June 30, 2008, compared to the audited Financial Statements for the year ended June 30, 2008. The reconciliation of the deviation and the explanations are set out in this table: Unaudited Adjustment Audited Results Results Variance Variance MYR'000 MYR'000 MYR'000 MYR'000 % ------- ---------- ------- -------- -------- Revenue 23,386 (2,406) 20,980 (2,406) 10 Profit/(Loss) (8,639) (18,896) (27,535) (18,896) 218 Profit/(Loss) (8,548) (19,220) (27,768) (19,060) 219 -------- ----------- ------- -------- -------- The variance in loss after taxation is due to: MYR'000 ------- (a) Allowance for impairment of property, plant and 3,583 equipment of RM3.58 million which was mainly due to the adjustments put through to reflect the estimated recoverable amount as a result of (i) the proposed disposal of a plot of industrial land held under Lot No. PT184 (New Lot No. 3839) HS(D) No. 16472, Mukim 13, Province Wellesley Central, Penang together with the factory cum office building and warehouse erected thereon for a cash consideration of RM7.00 million. The Company had entered into a conditional sale and purchase agreement on February 25, 2009, which is subsequent to the financial year; (ii) certain machinery under hire-purchase arrangements were repossessed and disposed off by the lending institutions subsequent to the financial year end. (b) Inventories written off of RM4.70 million which 4,701 was mainly due to additional write off during the audit process. (c) Allowance for doubtful debts and bad debts 4,466 written off of MYR1.18 million and MYR3.29 million respectively which was mainly due to addition provision/written off during the audit process. (d) Impairment of goodwill of MYR1.28 million which 1,282 was mainly due to the immediate recognition of all unamortized balance of goodwill arising from the acquisition of additional equity of Rhythm ICT Sdn Bhd in previous year after taking into consideration the legal cases against Rhythm ICT Sdn Bhd initiated subsequent to financial year end. (e) Project revenue over recognised of MYR1.89 million 1,421 and project cost over taken up of MYR0.47 million. (f) Property, plant and equipment written off of 1,219 MYR1.22 million which was mainly due to the asset review exercise carried-out during the audit process. (g) Others items. 2,548 --------------------------------------------------- ------- Total 19,220 About Rhythm Consolidated Based in Malaysia, Rhythm Consolidated Bhd is an investment holding company. The Company operates in five business segments: publishing, trading and distribution of books, paper stationery, printing paper and instruction manuals; manufacturing of music books, novels, educational books and paper stationery; import, wholesale and retail of paper products; marketing of diaries, organizers, leather and polyvinyl chloride (PVC) folders, wallets, bags, rain coats and others, and information and communication technology, which includes credit cards terminal development and solutions, and system application developer and system support. During the fiscal year ended June 30, 2007 (fiscal 2007), the Company acquired an additional 15% of interest in its associated company namely, Rhythm ICT Services Sdn. Bhd., formerly known as IQ Card Services Sdn Bhd, (ICT). As a result, the Company owns 55% interest in ICT, and ICT became a subsidiary of the Company. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 1, 2009, Rhythm Consolidated Berhad was considered as an Affected Listed Issuer under Practice Note No. 17/2005 of the Bursa Malaysia Securities Berhad as the company was unable to provide a solvency declaration to Bursa as per the announcement of default in payment by Monosetia Sdn Bhd. TIME ENGINEERING: Completes MYR342-Million Loan Stock Issuance -------------------------------------------------------------- Public Investment Bank Berhad disclosed that TIME Engineering Berhad has completed the issuance of 712,500,000 nominal value redeemable secured loan stocks at MYR0.48 each totaling MYR342,000,000 ("TIME RSLS") pursuant to the Debt Restructuring in accordance with the principal terms and conditions which were approved by the Securities Commission (Private Debt Securities) on March 16, 2009. The TIME RSLS was issued as settlement for the company's outstanding term loan facilities owing to Bank Pembangunan Malaysia Berhad ("BPMB") as prescribed by the Debt Restructuring Agreement and the RSLS Subscription Agreement entered into between the company and BPMB on February 27, 2009. The TIME RSLS will be for a period of up to seven (7) years commencing on and including the date of issue and shall mature on December 31, 2015, unless earlier redeemed by the company in accordance with the provisions of the terms and conditions attached to the TIME RSLS. The TIME RSLS was implemented pursuant to the Debt Restructuring and this forms part of the proposals within the Proposed Restructuring Exercise of the company. Time Engineering Berhad is an investment holding company engaged in information technology, telecommunications and engineering services. The company operates through three segments. The information communication technology segment is engaged in the supply, delivery, installation, testing, commissioning and maintenance of teaching aids equipment; development, management and provision of business to business e-commerce, and computerized transaction facilitation services; provision of media and electronic communications services; provisioning of managed and Internet-related services, and total systems integrators and information technology consultancy. The telecommunication segment is engaged in the provision of telecommunications, Internet and multimedia facilities, and services of an associate. The others segment is engaged in the supply, installation and maintenance of engineering and other equipment for expressways, telecommunications network and other general engineering works. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 9, 2008, Time Engineering Berhad was considered as an affected listed issuer of the Practice Note No. 17/2005 of Bursa Malaysia Securities Berhad as the auditors have expressed a modified opinion on the company's going concern status and on its shareholders' equity, which is less than 50% of its total issued and paid-up share capital. ==================== N E W Z E A L A N D ==================== GENEVA FINANCE: Posts NZ$6.99MM Loss for the Year Ended March 31 ---------------------------------------------------------------- Geneva Finance Limited disclosed in a regulatory filing with NZX its financial result for the year ended March 31, 2009. The company reported a NZ$6.99 million net loss for the year ended March 31, 2009, compared with a NZ$7.9 million net loss reported in 2008. Revenue was down 14 percent to NZ$38.75 million. Geneva said it delivered an audited pretax profit of NZ$636,000 in the last six months. This return to profit is a function of the benefits of the improved business model and the acquisitions of both Stellar Collections Limited and Quest Insurance Group Limited during the course of the year. Restructuring and Rebuilding The finance company said that during the last twelve months the company's focus has been on bedding down the new procedures and systems, as well as making ongoing improvements to its business model. Further reductions in head count have been achieved and the business has now lowered overhead costs by approximately NZ$12.7 million per annum. Capital Reconstruction Since approval of the capital reconstruction in May 2008, the company has met all its obligations under that proposal, including the repayment of NZ$48.0 million principal to stockholders together with interest in full at each month end. Revised Forecasts Geneva said it revised its forecasts for the periods to March 31, 2011, which was disclosed in its capital reconstruction document, due the severity of the world-wide recession. The company forecast a tax-paid profit of NZ$1.5 million in the year to March 31, 2010, down from the previous forecast of NZ$3.25 million. The company also forecast tax-paid profit of NZ$2.62 million for March 31, 2011, down from NZ$3.36 million. Geneva Finance Limited -- http://www.genevafinance.co.nz/-- provides finance and financial services to the consumer credit and small to medium business markets. The company provides hire purchase finance and personal loans secured by registered security interests over personal assets such as motor vehicles, household goods and residential property. Geneva Finance's loans are originated through three distribution channels (Direct, Retail and Dealer), processed by the central sales desk and mobile sign-up managers then administered through a national operations centre located at Mt Wellington, Auckland. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 1, 2008, Standard & Poor's Ratings raised its long-term counterparty credit rating on New Zealand finance company Geneva Finance Ltd. (Geneva) to 'CCC' from 'CC'. The three-rating- notch upgrade follows Geneva debtholders' acceptance of a recapitalization and new funding proposal, and Geneva's banker support to the proposal. The proposal will provide more funding certainty in the short term, and will materially strengthen the company's capitalization. At the same time, the rating was removed from CreditWatch with developing implications, where it was initially placed on November 5, 2007. The outlook on the rating is negative. PLUS SMS: Clarifies Directors' Resignation, Shares Still Suspended ------------------------------------------------------------------ Plus SMS Holdings Ltd said that some of the directors resignations announcements released on June 11, 2009, were results of error and miscommunication. In a statement to the stock exchange, the company said "the market was erroneously advised that Mr. Robert K. Hunter had resigned from the Board of Directors. Mr. Hunter did not table his resignation from the Board and his position as Chairman remains unaltered." The company also said Mr. Murray Allot and Mr. Clive Thomas remain as directors of the company. "The Board has been unable to contact Mr. Hans Hawinkles at this point in time and further information will be provided when his position is clarified." Trading in Plus SMS shares remains suspended until the company can proved that it has an appropriate corporate governance structures in place to ensure compliance with the NZAX Listing Rules and to prevent such an error occurring again. As reported in the Troubled Company Reporter-Asia Pacific on June 12, 2009, Plus SMS disclosed that Murray G Allott and Robert K. Hunter have resigned as directors of the company, effective June 11, 2009. In a separate stock exchange statement, Plus SMS said company director Hans Hawinkels also tendered his resignation as director effective immediately. The National Business Review reported that excluding recently announce departures, company Office records show Plus SMS has 11 former directors since 2000. The NZAX-listed company has farewelled its chief commercial officer, chief executive and chief financial officer in the last year and has been in dispute with a founder, the report noted. Plus SMS Holdings Ltd. (NZX: PLS) -- http://www.cre-eight.com/ -- along with its subsidiaries, is principally engaged in the provision of mobile entertainment and network services. Some of its wholly owned subsidiaries include CRE8 Limited, which is engaged in content and network services; Content Technology, S A De C V, which is engaged in content services, and CRE8 Consultoria, which is engaged in administration services. * * * The company incurred three consecutive net losses of NZ$6.96 million, NZ$11.89 million, and NZ$4.49 million for the financial years ended March 31, 2008, 2007 and 2006, respectively. ===================== P H I L I P P I N E S ===================== METRO BANK: Fitch Affirms 'B' Foreign Currency IDR -------------------------------------------------- Fitch Ratings has affirmed the ratings of Metropolitan Bank and Trust Company, Security Bank Corporation, Philippine National Bank and Allied Banking Corporation. The full list of rating actions is included at the end of the release. Fitch believes that while difficult macroeconomic conditions in the Philippines are likely to result in weaker financial performance for the banking sector, such risks appear reasonably supported by the banks' capital positions in view of system-wide Tier 1 CAR of around 12%. Importantly, the agency believes that operating-environment-related risks are still generally reflected in the banks' modest to weak Individual Ratings as well as low Issuer Default Ratings. Metro Bank's ratings are premised on its modest balance sheet and profitability, and its size as the second largest Philippine bank. Impairment risks may stem from the bank's lowly-reserved foreclosed properties due to declining property prices, and a deterioration in loan quality amid difficult market conditions. However, its moderate capital position may help cushion the impact of asset quality issues and hence the Rating Outlook is on balance still Stable. Security Bank's ratings reflect its vulnerability arising from a concentrated loan book, although this is mitigated by its prudent reserve levels, adequate profitability and capitalization. The bank may be susceptible to new large corporate NPLs although this is offset by the fact that its corporate loan exposure was mostly to large top-tier institutions. In addition, Fitch notes that the bank has prudently set aside reserves for concentration risks. As such, the Outlook continues to be Stable. PNB's Individual Rating is based on the bank's weak balance sheet strength and limited profitability. Even after merging with Allied Bank (which is pending regulatory clearance), the financial profile of the merged entity still appears inferior to its peers, although somewhat healthier than on a standalone basis. Indeed, as a proportion of total assets at end-2008, problematic assets were around 14% for PNB and 10% on a pro-forma basis (after including Allied Bank). As such, its core equity, although estimated to remain above average at around 9%-10% of total assets, appears susceptible to capital impairment risks as indicated in its low Individual Rating. Allied Bank's Individual Rating reflects a relatively better standalone risk profile than PNB's thanks to improved balance sheet strength, although there are some risks of loan concentration and weak profitability. However, the downward pressure on its rating appears to have increased given the difficult operating environment and the bank's impending merger with a relatively weaker entity. The full list of rating actions on the Philippine banks is: -- Metro Bank: Long-term foreign currency IDR at 'BB', Short- term foreign currency IDR at 'B', Individual at 'D', Support at '3', Support Rating Floor at 'BB-' and rating on hybrid Tier 1 at 'B'. The Outlook is Stable. -- Security Bank: Long-term foreign and local currency IDRs at 'BB', Short-term foreign currency IDR at 'B', National Long- term Rating at 'AA-(phl)', Individual at 'D', Support at '4', Support Rating Floor at 'B+', National Rating on subordinated notes at 'A+(phl)'. The Outlook is Stable. Meanwhile, the local currency 'BB-' rating on the subordinated notes is affirmed and withdrawn. -- PNB: Individual 'D/E' and Support '3'. -- Allied Bank: Individual 'D' and Support '4'. SECURITY BANK: Fitch Affirms 'B' Short-Term Foreign Currency IDR ---------------------------------------------------------------- Fitch Ratings has affirmed the ratings of Metropolitan Bank and Trust Company, Security Bank Corporation, Philippine National Bank and Allied Banking Corporation. The full list of rating actions is included at the end of the release. Fitch believes that while difficult macroeconomic conditions in the Philippines are likely to result in weaker financial performance for the banking sector, such risks appear reasonably supported by the banks' capital positions in view of system-wide Tier 1 CAR of around 12%. Importantly, the agency believes that operating-environment-related risks are still generally reflected in the banks' modest to weak Individual Ratings as well as low Issuer Default Ratings. Metro Bank's ratings are premised on its modest balance sheet and profitability, and its size as the second largest Philippine bank. Impairment risks may stem from the bank's lowly-reserved foreclosed properties due to declining property prices, and a deterioration in loan quality amid difficult market conditions. However, its moderate capital position may help cushion the impact of asset quality issues and hence the Rating Outlook is on balance still Stable. Security Bank's ratings reflect its vulnerability arising from a concentrated loan book, although this is mitigated by its prudent reserve levels, adequate profitability and capitalization. The bank may be susceptible to new large corporate NPLs although this is offset by the fact that its corporate loan exposure was mostly to large top-tier institutions. In addition, Fitch notes that the bank has prudently set aside reserves for concentration risks. As such, the Outlook continues to be Stable. PNB's Individual Rating is based on the bank's weak balance sheet strength and limited profitability. Even after merging with Allied Bank (which is pending regulatory clearance), the financial profile of the merged entity still appears inferior to its peers, although somewhat healthier than on a standalone basis. Indeed, as a proportion of total assets at end-2008, problematic assets were around 14% for PNB and 10% on a pro-forma basis (after including Allied Bank). As such, its core equity, although estimated to remain above average at around 9%-10% of total assets, appears susceptible to capital impairment risks as indicated in its low Individual Rating. Allied Bank's Individual Rating reflects a relatively better standalone risk profile than PNB's thanks to improved balance sheet strength, although there are some risks of loan concentration and weak profitability. However, the downward pressure on its rating appears to have increased given the difficult operating environment and the bank's impending merger with a relatively weaker entity. The full list of rating actions on the Philippine banks is: -- Metro Bank: Long-term foreign currency IDR at 'BB', Short- term foreign currency IDR at 'B', Individual at 'D', Support at '3', Support Rating Floor at 'BB-' and rating on hybrid Tier 1 at 'B'. The Outlook is Stable. -- Security Bank: Long-term foreign and local currency IDRs at 'BB', Short-term foreign currency IDR at 'B', National Long- term Rating at 'AA-(phl)', Individual at 'D', Support at '4', Support Rating Floor at 'B+', National Rating on subordinated notes at 'A+(phl)'. The Outlook is Stable. Meanwhile, the local currency 'BB-' rating on the subordinated notes is affirmed and withdrawn. -- PNB: Individual 'D/E' and Support '3'. -- Allied Bank: Individual 'D' and Support '4'. ================= S I N G A P O R E ================= CHARTERED SEMICONDUCTOR: Temasek Seeks Better Offer for Stake ------------------------------------------------------------- Temasek Holding Pte. Ltd. wants a better offer for its controlling stake in Chartered Semiconductor Manufacturing Ltd. than the one it got from Abu Dhabi-owned Advanced Technology Investment Co., Dow Jones Newswires reports citing two people familiar with the situation. According to the report, one of the people said Temasek, which holds 62.33% stake in Chartered, is "still considering the Arab offer, but there are no talks right now." The source, as cited by Dow Jones, noted the company feels it can get a better offer. Dow Jones, citing two people familiar with the situation, said that in late May ATIC had offered to buy Temasek's stake in Singapore chip foundry Chartered at about SG$2.50 a share, valuing the company at around SG$2.35 billion. The report recalls that the company said in a statement at the time that it received no bid from ATIC, but added that it engages various parties in talks for business opportunities or strategic direction. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 2, 2009, for the year ended December 31, 2008, Chartered Semi incurred a net loss of US$92.6 million compared to a net income of US$101.7 million in 2007. As reported in the Troubled Company Reporter-Asia Pacific on April 21, 2009, Moody's Investors Service confirmed the Ba2 corporate family and senior unsecured bond ratings of Chartered Semiconductor. The rating outlook is negative. On March 12, 2009, the TCR-AP reported that Fitch Ratings downgraded Chartered Semiconductor's Long-term foreign currency Issuer Default rating and outstanding senior unsecured debt to 'BB-' (BB minus) from 'BB+'. The Outlook has been revised to Negative from Stable. A TCR-AP report on Feb. 27, 2009, said Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Chartered Semiconductor to 'BB' from 'BB+'. The outlook is negative. At the same time, Standard & Poor's lowered the issue ratings on all of Chartered's senior unsecured notes to 'BB' from 'BB+'. About Chartered Semiconductor Singapore-based Chartered Semiconductor Manufacturing Ltd. (Nasdaq: CHRT and SGX-ST: CHARTERED) -- http://www.charteredsemi.com/-- is a semiconductor foundry, which provides wafer fabrication services and technologies to semiconductor suppliers and systems companies. The company focuses on providing foundry services to customers that serve technologically advanced applications for the communication, computer and consumer sectors. As of December 31, 2008, Chartered owns, or have an interest in, six fabrication facilities, Fabs 2, 3, 3E, 5, 6 and 7, all of which are located in Singapore. Fab 7 is its only 300-mm facility. The company have service operations in 9 locations in 7 countries throughout North America, Europe and Asia. In March 2008, the company completed its acquisition to purchase 100% of the shares in Chartered Tampines, which owns and operates an eight-inch wafer fabrication facility, or Fab 3E, located in Singapore. DMC CHEMICALS: Court Enters Wind-Up Order ----------------------------------------- On June 5, 2009, the High Court of Singapore entered an order to have DMC Chemicals Pte Ltd's operations wound up. Dai Nippon Toryo Co., Ltd filed the petition against the company. The company's liquidator is: JPL Wong & Co 20 Maxwell Road #07-12/13/14 Maxwell House Singapore 069113 S.C. CAPITAL: Pays First and Final Dividend ------------------------------------------- S.C. Capital Advisors (Singapore) Pte Ltd, which is in voluntary liquidation, paid its creditors the first and final dividend on June 12, 2009. The company paid 100% to all received claims, Mick Aw is the company's liquidator. SIEM SENG: Court to Hear Wind-Up Petition on June 26 ---------------------------------------------------- A petition to have Siem Seng Paints Supplier Pte Ltd's operations wound up will be heard before the High Court of Singapore on June 26, 2009, at 10:00 a.m. Goh Kah Hock filed the petition against the company on May 28, 2009. The Petitioner's solicitor is: CTLC Law Corporation No. 5 Shenton Way #11-01 UIC Building Singapore 068808 UNIFONE PTE: Creditors' Proofs of Debt Due on June 29 ----------------------------------------------------- Unifone Pte Ltd, which is voluntary liquidation, requires its creditors to file their proofs of debt by June 29, 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 =============== X X X X X X X X =============== * BOND PRICING: For the Week June 8 to June 12, 2009 ---------------------------------------------------- AUSTRALIA --------- A&R Whitcoulls 9.500% 12/15/10 NZS 68.98 Ainsworth Game 8.000% 12/31/09 AUD 0.70 AMP Group Financ 9.803% 04/01/19 NZD 1.85 AMP Group Financ 6.875% 08/23/22 GBP 64.70 Antares Energy 10.000% 10/31/13 AUD 1.80 Aust & NZ Bank 6.540% 06/29/49 GBP 74.00 Babcock & Brown Pty 8.500% 11/17/09 NZD 32.87 Becton Property Group 9.500% 06/30/10 AUD 0.49 Bemax Resources 9.375% 07/15/14 USD 60.00 Bemax Resources 9.375% 07/15/14 USD 60.00 Bounty Industries Ltd 10.000% 06/30/10 AUD 0.02 Capral Aluminum 10.000% 03/29/12 AUD 6.00 Centaur Mining 11.000% 12/01/07 USD 0.00 China Century 12.000% 09/30/10 AUD 0.79 Com BK Australia 4.650% 06/15/18 GBP 73.65 Com BK Australia 4.650% 06/15/18 GBP 73.65 Djerriwarrh Inv 6.500% 09/30/09 AUD 3.93 First Australian 15.000% 01/31/12 AUD 0.55 GE Cap Australia 6.000% 03/15/19 AUD 72.52 Griffin Coal Min 9.500% 12/01/16 USD 52.37 Griffin Coal Min 9.500% 12/01/16 USD 52.37 Hanson Australia 5.250% 03/15/13 USD 74.50 Heemskirk Consol 8.000% 04/29/11 AUD 2.25 Insurance Austra 5.625% 12/21/26 GBP 66.00 Jpm Au Enf Nom 1 3.500% 06/30/10 USD 1.75 Minerals Corp 10.500% 09/30/09 AUD 0.59 Metal Storm 10.000% 09/01/09 AUD 0.07 Nylex Ltd 10.000% 12/08/19 AUD 0.84 Orchard Invest 9.000% 12/15/10 AUD 29.50 Resolute Mining 12.000% 12/31/12 AUD 0.78 Sun Resources NL 12.000% 06/30/11 AUD 0.60 Suncorp-Metway 6.500% 06/22/16 AUD 68.50 Suncorp-Metway 6.625% 10/23/17 GBP 67.00 Suncorp Insuran 6.250% 06/13/27 GBP 61.50 Timbercorp Ltd 8.900% 12/01/10 AUD 26.10 Westfield Fin 5.500% 06/27/17 GBP 74.90 Westpac Banking 4.625% 06/01/18 USD 73.20 CHINA ----- China Govt Bond 4.860% 08/10/14 CNY 00.00 Chinatrust Comm 5.625% 03/29/49 CNY 69.87 Jiangxi Copper 1.000% 09/22/16 CNY 73.09 HONG KONG --------- Bank East Asia 6.125% 03/29/49 GBP 74.23 INDIA ----- Aftek Infosys 1.000% 06/25/10 USD 73.00 AKSH Optifibre 1.000% 01/29/10 USD 57.50 Flex Industries 4.000% 03/09/12 USD 51.25 Gemini Commnica 6.000% 07/18/12 EUR 64.00 GHCL Ltd 1.000% 03/21/11 USD 49.25 Hindustan Cons 10.000% 10/25/09 INR 20.00 JCT Ltd 2.500% 04/08/11 USD 31.75 Kei Industries 1.000% 11/30/11 USD 65.00 Subex Azure 2.000% 03/09/12 USD 25.37 Wanbury Ltd 1.000% 04/23/12 EUR 67.50 INDONESIA --------- Ciliandra 11.500% 11/27/12 IDR 73.10 JAPAN ----- Aiful Corp 1.580% 05/26/11 JPY 70.21 Aiful Corp 1.990% 03/23/12 JPY 63.06 Aiful Corp 1.220% 04/20/12 JPY 61.18 Aiful Corp 1.630% 11/22/12 JPY 58.08 Aiful Corp 1.990% 10/19/15 JPY 49.55 Aozora Bank 0.400% 05/27/14 JPY 74.93 Aozora Bank 0.400% 06/12/14 JPY 74.66 Belluna Co Ltd 1.100% 03/21/12 JPY 60.51 CSK Corporation 0.250% 09/30/13 JPY 31.50 Daikyo Inc. 1.880% 03/12/12 JPY 72.68 Fukoku Mutual 4.500% 09/28/25 EUR 54.00 Japan Airlines 3.100% 01/22/18 JPY 73.90 JPN Exp Hld/Debt 0.500% 09/17/38 JPY 56.55 Kenedix Inc. 2.090% 11/09/10 JPY 44.80 Orix Corp 2.190% 04/18/17 JPY 71.59 Pacific Golf Gro 1.000% 05/01/12 JPY 73.08 Resona Bank 5.986% 08/29/49 GBP 71.00 Resona Bank 4.125% 09/29/49 GBP 71.50 Resona Bank 5.850% 09/29/49 USD 68.25 Shinsei Bank 1.960% 03/25/15 JPY 72.50 Shinsei Bank 2.010% 10/30/15 JPY 70.23 Shinsei Bank 3.750% 02/23/16 EUR 70.50 Shinsei Bank 5.625% 12/29/49 GBP 44.87 Sumitomo Mitsui 4.375% 07/29/49 EUR 74.50 Takefuji Corp 4.500% 10/22/32 JPY 64.36 MALAYSIA -------- Advance Synergy Berhad 2.000% 01/26/18 MYR 0.08 Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 0.95 AMBB Capital 6.770% 01/29/49 USD 64.12 Berjaya Land Bhd 5.000% 12/30/09 MYR 3.70 Crescendo Corp B 3.750% 01/11/16 MYR 0.60 Dutaland Bhd 4.000% 04/11/13 MYR 0.51 Dutaland Bhd 4.000% 04/11/13 MYR 0.90 EG Industries 5.000% 06/16/10 MYR 0.55 Eastern & Orient 8.000% 04/25/11 MYR 1.05 Huat Lai Resources 5.000% 03/28/10 MYR 0.30 Kamdar Group Bhd 3.000% 11/09/09 MYR 0.22 Kretam Holdings 1.000% 08/10/10 MYR 1.04 Kumpulan Jetson 5.000% 11/27/12 MYR 0.45 LBS Bina Group 4.000% 12/31/09 MYR 0.44 Lion Diversified 4.000% 12/17/13 MYR 0.93 Mithril Bhd 3.000% 04/05/12 MYR 0.66 Nam Fatt Corp 2.000% 06/24/11 MYR 0.38 Olympia Industri 2.800% 04/11/13 MYR 0.25 Olympia Industri 4.000% 04/11/13 MYR 0.28 Plus SPV Bhd 2.000% 03/11/19 MYR 72.36 Puncak Niaga Hld 2.500% 11/18/16 MYR 0.72 Rubberex Corp 4.000% 08/14/12 MYR 0.94 Tradewinds Corp 2.000% 02/08/12 MYR 0.80 TRC Synergy 5.000% 01/20/12 MYR 1.13 Tradewinds Plant 3.000% 02/28/16 MYR 1.10 Wah Seong Corp 3.000% 05/21/12 MYR 2.61 Wijaya Baru Glob 7.000% 09/17/12 MYR 0.37 YTL Cement Bhd 4.000% 11/10/15 MYR 1.89 NEW ZEALAND ----------- Allied Farmers 9.600% 11/15/11 NZD 49.41 Allied Nationwid 11.520% 12/29/49 NZD 41.00 BBI Ntwrks NZ Ltd 8.000% 11/30/12 NZD 0.35 Blue Star Print 9.100% 09/15/12 NZD 28.97 Capital Prop NZ 8.000% 04/15/10 NZD 12.00 Contact Energy 8.000% 05/15/14 NZD 1.00 Fidelity Capital 9.250% 07/15/13 NZD 63.83 Fletcher Buildin 7.550% 03/15/11 NZD 8.75 Fletcher Buildin 8.500% 03/15/15 NZD 9.75 Generator Bonds 8.200% 09/07/11 NZD 65.49 Hellaby Holdings 8.500% 06/15/11 NZD 68.54 Infrastr & Util 8.500% 09/15/13 NZD 10.75 Infratil Ltd 8.500% 11/15/15 NZD 11.00 Infratil Ltd 8.500% 02/15/20 NZD 74.22 Infratil Ltd 10.180% 12/29/49 NZD 55.00 Marac Finance 10.500% 07/15/13 NZD 0.93 Sky Network TV 9.370% 10/16/16 NZD 72.50 South Canterbury 10.500% 06/15/11 NZD 0.95 South Canterbury 10.430% 12/15/12 NZD 0.87 St Laurence Prop 9.250% 07/15/10 NZD 29.81 Tower Capital 8.500% 04/15/14 NZD 0.92 Trustpower Ltd 8.500% 09/15/12 NZD 8.00 Trustpower Ltd 8.500% 03/15/14 NZD 12.50 Vector Ltd 8.000% 12/29/49 NZD 0.99 Vector Ltd 8.000% 12/29/49 NZD 8.25 SINGAPORE --------- Capitaland Ltd. 2.950% 06/20/22 SGD 74.18 Sengkang Mall 8.000% 11/20/12 SGD 1.49 United ENG Ltd 1.000% 03/03/14 SGD 1.31 WBL Corporation 2.500% 06/10/14 SGD 1.80 SOUTH KOREA ----------- Korea Elec Pwr 6.000% 12/01/26 USD 64.45 Seoul Metro Rail 2.500% 01/31/16 KRW 45.22 Shinhan Bank 6.819% 09/20/36 USD 71.25 Woori Bank 6.208% 05/02/37 USD 72.00 SRI LANKA --------- Sri Lanka Govt 8.500% 02/01/18 LKR 74.71 Sri Lanka Govt 8.500% 07/15/18 LKR 74.09 Sri Lanka Govt 7.500% 08/15/18 LKR 68.90 Sri Lanka Govt 8.500% 05/01/19 LKR 73.65 Sri Lanka Govt 7.000% 10/01/23 LKR 60.26 THAILAND -------- Italian-Thai Dev 4.500% 06/10/13 USD 52.00 Krung Thai Bank 7.378% 10/29/49 USD 74.85 PTT PCL 5.875% 08/03/35 USD 73.48 True Move 10.375% 08/01/14 USD 74.52 ********* 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 ***