/raid1/www/Hosts/bankrupt/TCRAP_Public/090827.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
Thursday, August 27, 2009, Vol. 12, No. 169
Headlines
A U S T R A L I A
AUTOMOTIVE COMPONENTS: Goes Into Voluntary Administration
FORD MOTOR: Fitch Revises Credit Outlook from Neg. to Stable
KLEENMAID GROUP: Court Orders Luxury Cars Returned
SINO GOLD: Discloses AU$2.2BB Takeover Bid from Eldorado Gold
C H I N A
CHINA LOGISTICS: Earns US$137,680 for Three Months Ended June 30
EAST STAR: CEG Plans to Re-launch Firm with CNY300MM Investment
SHANDONG ZHOUYUAN: Earns US$165,105 in Three Months Ended June 30
SHIMAO PROPERTY: S&P Gives Stable Outlook; Affirms 'BB' Rating
H O N G K O N G
ASCENT VANTAGE: Creditors' Meeting Set for August 31
BRAND NEW: Members and Creditors to Hold Meeting on September 18
CHINA STATE: Placed Under Voluntary Wind-Up
CITIC PACIFIC: 1H Profit Drops 43% to HK$2.47 Billion
HONG WANG: Court to Hear Wind-Up Petition on September 30
NEO-CHINA LAND: Chairman Stepdown Won't Move Moody's 'Caa3' Rating
POWER STRAIGHT: Court to Hear Wind-Up Petition on October 14
PUBLISHERS ASSOCIATES: Court to Hear Wind-Up Petition on Sept. 23
TREASURE MANAGEMENT: To Hold Annual Meetings on September 1 & 2
TREASURE RESTAURANT: To Hold Annual Meetings on September 1 & 2
TREASURE SEAFOOD: To Hold Annual Meetings on September 1 & 2
WINMACK INTERNATIONAL: Cowley and Muk Step Down as Liquidators
I N D I A
AGIO PHARMACEUTICALS: Loan Default Prompts CRISIL 'D' Ratings
AIR INDIA: Says Employees to Get Salaries & Wages on Time
BEST CHERAN: CRISIL Downgrades Rating on Various Loans to 'D'
CERAFLUX INDIA: CRISIL Places 'BB-' Rating on INR44 Mln Term Loan
CHERAN SPINNER: CRISIL Cuts Rating on INR110.3MM LT Loan to 'D'
COMPAGNIE INDO: Low Net Worth Cues CRISIL to Assign 'BB+' Rating
FLOVEL MECAMIDI: CRISIL Puts 'BB' Ratings on Various Bank Loans
NAMAN MALL: CRISIL Rates INR400MM Rupee Term Loans at 'D(so)'
RAMEE HOTELS: CRISIL Assigns 'D' Rating on INR1.04BB Term Loan
RAMANI HOTELS: Delays in Loan Repayment Prompt CRISIL 'D' Ratings
SHREE BALAJI: CRISIL Puts Junk Ratings on Various Bank Facilities
TATA CHEMICALS: Denies Merger Plans with Rallis India
UNIVERSAL IMPORT: CRISIL Rates INR35 Mln Packing Credit at 'P4'
I N D O N E S I A
PT CILIANDRA: Fitch Affirms 'BB-' Issuer Default Ratings
J A P A N
FUJITSU LIMITED: To Cut Up to 1,200 Jobs in the U.K.
MITSUKOSHI LTD: Aims to Cut 20% Workforce Early Next Month
TAKEFUJI CORPORATION: Moody's Cuts Senior Debt Rating to 'Ba1'
M A L A Y S I A
HO HUP: Posts MYR3.70 Mil. Net Loss in Quarter Ended June 30
MECHMAR CORP: Reports MYR196,000 Net Income in Qtr Ended June 30
OCI BERHAD: Posts MYR295,000 Net Loss for Qtr. Ended June 30
N E W Z E A L A N D
AIR NEW ZEALAND: Resolves Pay Dispute with Zeal 320 Cabin Crews
BLUE STAR: Suspends Cash Interest Payments on Capital Bonds
P A K I S T A N
PAKISTAN MOBILE: S&P Raises Corporate Credit Rating to 'B-'
P H I L I P P I N E S
BENPRES HOLDINGS: Buys Back US$169 Million Debt from Avenue Asia
X X X X X X X X
* S&P Downgrades Ratings on 39 Asia-Pacific Synthetic CDOs
- - - - -
=================
A U S T R A L I A
=================
AUTOMOTIVE COMPONENTS: Goes Into Voluntary Administration
---------------------------------------------------------
Tasmanian car parts manufacturer Automotive Components Limited has
been placed into voluntary administration, Paul Carter at The
Australian Associated Press reports.
Greg Keith and Matt Byrnes of Grant Thornton Melbourne have been
appointed receivers and managers of Automotive Components Limited,
the AAP relates citing a company statement Wednesday.
"As a result of the directors' decision to appoint voluntary
administrators to ACL this morning [Aug. 26], receivers were
appointed to take control of the business," the statement said.
"The receivers intend to continue to trade ACL and ensure
continuity of supply to the automotive industry while they
consider all available options for the business."
The AAP says it is understood the receivers will try to sell it as
a going concern.
According to the AAP, Federal Industry Minister Kim Carr said the
fate of ACL will affect the capacity of the Australian auto
industry and tens of thousands of jobs.
In June 2009, the federal government announced a AU$7 million
bailout package for the company to stave off insolvency and save
the jobs of 280 workers, the AAP recalls. About AU$5 million of
the funds was banked by the company before its directors called in
the receivers on Wednesday.
Manufacturer's Monthly relates that Senator Carr said the federal
government will continue to work with the receivers and
administrators of ACL, with Ford and Toyota, and with unions and
workers to try and avoid disruption for the automotive industry.
Automotive Components Limited (ACL) supplies critical components
including engine bearings and gaskets to the automotive industry.
The compnay employs over 300 people across its two sites in
Tasmania and Queensland, Australia.
FORD MOTOR: Fitch Revises Credit Outlook from Neg. to Stable
------------------------------------------------------------
Fitch Ratings announced via Business Wire on August 26 that it has
revised the Rating Outlook on Ford Motor Company (Ford) and Ford
and Ford Motor Credit Company to Stable from Negative. In
addition, the Issuer Default Rating of Ford is affirmed at 'CCC'.
The change in the Outlook is based on the solid execution of
Ford's restructuring program, a competitive product lineup with a
healthy level of new and refreshed product introductions over the
next several years, realignment of the company's manufacturing
footprint, and diminished liquidity concerns. A return to positive
cash flow is not expected over the next 12 months, but is probable
upon the industry reaching more normalized sales levels above 12
million light vehicles. Although Fitch projects a slow rebound in
industry sales (consistent with a weak economic recovery), signs
of stabilization in the economy, coupled with replacement demand,
indicate that industry sales should reach this level of annualized
demand in late 2010 or 2011. Improvement in the company's Outlook
and rating will be driven by the pace and mix of the rebound in
industry sales, steady execution of the company's product
introductions, continued discipline in the company's
production/inventory strategy, further margin improvement and
competitive access to capital at Ford Credit. These trends are
largely pointing in the right direction, but have been overwhelmed
by general economic and industry conditions. The behavior of
competitors in production and pricing could also influence the
timing of any improvement in the outlook or rating.
Ford's product lineup continues to perform well, and the company
is positioned to maintain or increase retail share over the next
several years with new products and an aggressive refreshening
program. Ford has achieved relatively broad competitiveness across
market segments, including smaller product segments where industry
sales have been trending. Ford's Focus and Escape were two of the
top eight vehicles in the Cash for Clunkers program, while the
refreshed Fusion continues to perform well in the competitive mid-
size sedan market.
Two new product introductions should lead to incremental share
gains: the Fiesta in the sub-compact market where Ford has not
recently had a U.S. product, and the new Taurus in the large sedan
category, where Ford has not been competitive for some time.
Ford's quality improvement has been well-documented and together
with Ford's ability to avoid taking government aid, may benefit
Ford's near-term retail share. Although Fitch is not projecting a
rapid rebound in industry sales in 2010 (particularly with the
pull-forward from the Cash for Clunkers program), a stronger-than-
expected rebound in industry sales to above the 12 million light-
vehicle sales level and improvement in housing construction could
lead Ford to operate at a cash- flow breakeven point in the second
half of 2010. Weak employment, high foreclosure rates, higher
savings, shaky consumer confidence and the impact of the Cash for
Clunkers program, however, all point to a modest recovery in
industry sales over the near term.
A Fitch upgrade of Ford would be driven by a combination of the
following:
--Industry sales rebound to an annual 12 million sales level more
quickly than currently forecast;
--Ford's products continue to hold or gain share;
--Inventory management at Ford and the industry allows Ford to
hold or improve product prices;
--A clear path to positive free cash flow is projected;
--Liabilities continue to be managed or addressed, including the
maturity of the company's bank agreement;
--Independent access to capital by Ford Credit improves.
A downgrade could result from some combination of the following
factors:
--U.S. industry sales revert to further declines in the event of
a double-dip recession;
--A market disruption in oil prices which sends gas prices sharply
higher and drives consumers away from vehicle purchases;
--A breakdown in the supply chain resulting from further supplier
bankruptcies and lack of access to capital, or from
dislocations caused by the dissolution of a major competitor;
--Inability of Ford Credit to obtain financing on competitive
terms.
Ford has made significant reductions in its fixed cost structure,
although step-changes to its headcount, wages and benefits have
largely been completed. Realization of recent actions should
continue through year-end, with a full run-rate of savings
expected in 2010. Future cost savings will be achieved largely
through more standard (but challenging) efficiency and
productivity gains, including materials savings. Upon completion
of the conversion of several truck plants, Ford's manufacturing
footprint will be well-aligned with near-term product plans,
supporting an expected improvement in efficiency and capacity
utilization. New product introductions and higher volumes through
existing assembly plants, plus increased platform sharing, should
provide material improvement in operating margins, also aided by
the ability to add lower-tier hourly wage earners. Ford's ability
to navigate recent events - the plummet in industry sales,
consumer migration to smaller vehicles, multiple plant closures, a
dramatic reduction in its workforce, the bankruptcy of Chrysler
and GM, diminished retail financing capacity and distress in the
supply base - while still introducing competitive, improved-
quality products and accelerating its product cadence, has been
impressive.
A primary driver of operating performance over the near term will
be the high-margin large pickup segment, which constituted 10.4%
of U.S. light-vehicle unit sales through August 2009, and 24% of
Ford's non-Volvo unit deliveries. This market has suffered a
decline of more than 50% in production from 2006 levels, and sales
volumes remain mired below replacement demand. Demand is expected
to recover slowly due to lingering weakness in the housing market,
but the potential trough of the housing market should signal
improved demand and consolidated margin performance as a result.
From a competitive standpoint, Ford and GM could be poised to gain
pickup share from Nissan (weak market presence) and Chrysler (the
impact of its bankruptcy on sales and capital investment
capacity). Over the longer term, it remains to be seen what
Toyota's plans in the full-size pickup segment will be. Although a
withdrawal from the pickup truck market is not expected, Ford and
GM's comparative strengths in brand and pickup truck quality, the
lack of global platform scale, and the vast market share advantage
of the Detroit 3 call into question Toyota's ability to earn an
adequate return on the capital investment in this platform over
the long term.
Ford's plant consolidation, cost reductions, product introductions
and operating strategy have aided a disciplined
production/inventory balance in 2009, and allowed Ford to achieve
pricing gains that have benefited operating results. This
discipline will lead to production boosts in the third and fourth
quarter of 2009 from levels that were below demand for much of the
year, although it remains to be seen whether the industry's
history of over-production and price discounting will allow Ford
to consistently adhere to this strategy.
Ford has also committed substantial resources to the support of
its supply chain, a cost that is unlikely to abate in 2010. Access
to capital remains limited or non-existent for a large part of the
supply base, and further bankruptcies will be a certainty. It has
been noteworthy that through the bankruptcy of numerous Tier 1 and
lower-tiered suppliers, as well as the bankruptcy of Chrysler and
General Motors, the production process has been surprisingly well-
managed with very few disruptions (although aided by the
substantial injection of funds by the Federal government). As the
supplier industry consolidates and business migrates to
financially viable suppliers, the reduction in support costs for
Ford could be material in the outer years. However, the industry
has been supported by multiple layers of Federal government
support, including direct capital injections into General Motors
and Chrysler (as well as their finance arms), supplier aid, the
TALF program and more. The reduction or termination of these
actions will place additional burdens on the industry, as self-
sufficiency remains uncertain.
Liquidity remains sufficient to finance reduced operating losses
over the near term, even if a slow recovery pushes out the timing
of the company's cash-flow breakeven point. As of June 30, 2009,
Ford had cash of approximately US$21 billion, with a reduced rate
of outflow projected for the second half due to increased
production and working capital inflows. Fitch estimates that if
U.S. industry sales rebound only to 11 million light vehicles in
2010, that Ford's cash drain from operations would be US$5 billion
or less, depending on mix. Primary risks to this forecast include
a U.S. relapse in economic conditions, a sharp escalation in gas
prices, the collapse of the supply base, or a lack of retail
financing capacity. In addition to cash on hand, sources include
future funding from the government for energy programs, modest
asset sales, potential securities issuance, and dividends from
Ford Credit. These sources are deemed sufficient to fund cash
drains from operations even if a recovery in industry sales is
deferred.
Shrinking U.S. production has also modestly lowered the cash level
needed to operate the business to below US$10 billion. Liquidity
in 2009 and into 2010 is expected to benefit from working capital
inflows associated with higher production volumes, and modest
asset sales. In addition, liquidity will benefit from an expected
US$5.9 billion in federal government loans under an energy-
efficiency program.
Ford's maturity schedule is centered on the December 2011 maturity
of its US$10.7 billion bank agreement. Given current market
conditions in the leveraged finance market, the company's recent
performance and the state of Ford's collateral, it is probable
that the company could "amend and extend" this facility in the
existing amount (although at higher pricing). This would mitigate
refinancing risk and address the liquidity risks associated with a
double-dip recession and the resulting step-down in industry
sales. Ford executed a voluntary debt exchange in 2009, removing
US$9.9 billion in debt (US$7.7 billion in unsecured debt and
US$2.2 billion in secured debt) and US$500 million in interest
costs. This debt reduction, however, was effectively replaced by
the drawdown of its revolving credit facility.
Over the past several years, Ford has also completed several
equity-for-debt swaps and a straight equity issuance, thereby
managing the growth in its liabilities and somewhat moderating the
damage caused by severe cash drains. Ford's willingness to use
equity is likely to continue. The interests of equity and
bondholders have recently been very much aligned, as both sides
have benefited from the issuance of equity and the boost in
liquidity, although it remains to be seen how long this will last.
Fitch expects that Ford will continue to issue equity over the
next 12 months as market conditions permit, and will likely issue
equity to finance its VEBA obligations to the full US$6.5 billion
permitted. However, even with periodic equity issuances, any
balance sheet improvement over the near term is expected to be
modest.
Although General Motors and Chrysler have realized substantial
access to capital from various government actions, Fitch does not
believe that this represents a competitive disadvantage to Ford
from a balance sheet perspective. To the contrary, Fitch views
Ford and Ford Credit's periodic access to equity and the debt
markets as a distinct competitive advantage. Over the longer term,
balance sheet strength or deterioration will be driven by
operating results, and Fitch views Ford as better-positioned in
this respect than its Detroit-based competitors. The retention of
Ford Credit remains a positive.
Ford's underfunded U.S. pension plan will require incremental
contributions over the next several years, although there are no
contributions required in 2010. Deferral of these contributions,
however, will result in larger funding gaps in outer years, and
will remain a material claim on cash flows. The VEBA agreement
with the UAW, changes to wage and benefit levels, and reduced
employment levels have materially reduced the long-term risks and
costs associated with legacy obligations.
Ford has shown steady improvement in market share in Europe, but
operating results will remain challenging through 2010 due to weak
economic conditions and a sharp 2010 payback resulting from
various aggressive 2009 Cash for Clunkers programs throughout
Europe. Results from Latin America and Asia are not expected to be
material users or generators of free cash flow over the next
several years.
Over the longer term, tighter regulations around the globe
addressing fuel-efficiency, emission standards, other
environmental, safety and urban planning are all likely to
pressure profitability by limiting or skewing demand, as well as
escalating capital investment requirements. These factors, along
with changing lifestyles indicate that global overcapacity is
likely to be a fundamental characteristic of the industry over the
long term, pressuring margins and leading to regular failures
among competitors. As technologies and regulatory requirements
multiply, Ford may continue to be capital constrained versus a
number of transplant competitors.
The ability of Ford Credit to finance itself and its customers,
independent of government sponsored programs and at economically
competitive rates will be a factor in future upgrades. Fitch has
revised Ford Credit's senior debt ratings following changes in
Fitch's rating definitions published in March 2009, which suggests
a baseline rating of 'B' for a 'CCC' IDR with an 'RR2' Recovery
Rating (RR). Fitch continues to believe potential recoveries are
at the lower end of the 71%-90% recovery range.
In the event of a bankruptcy, unsecured bond recoveries at Ford
are expected to be negligible. The senior secured loans are
currently rated 'RR1' (90%-100% recovery), based on a
restructured, going-concern North American enterprise value plus
certain international operations and joint ventures (particularly
those in Latin America and China). According to Fitch methodology,
an RR of 'RR1' would typically translate to a rating of 'B+'.
However, in the event of a stress scenario, recent industry events
suggest that the corresponding plunge in asset values would result
in less than full recovery, even though Ford's secured borrowings
are subject to a borrowing base.
Fitch has affirmed the following ratings:
Ford Motor Co.
--Long-term IDR at 'CCC';
--Senior secured credit facility at 'B/RR1';
--Senior secured term loan at 'B/RR1';
--Senior unsecured at 'CC/RR6'.
Ford Motor Co. Capital Trust II
--Trust preferred stock at 'C/RR6'.
Ford Holdings, Inc.
--Long-term IDR at 'CCC' ';
--Senior unsecured at 'CC/RR6'.
Ford Motor Co. of Australia
--Long-term IDR at 'CCC';
--Senior unsecured at 'CC/RR6'.
Ford Motor Credit Company LLC
--Long-term IDR at 'CCC';
--Short-term IDR at 'C';
--Commercial paper at 'C'.
FCE Bank Plc
--Long-term IDR at 'CCC';
--Short-term IDR at 'C';
--Commercial paper at 'C';
--Short-term deposits at 'C'.
Ford Capital B.V.
--Long-term IDR at 'CCC';
Ford Credit Canada Ltd.
--Long-term IDR at 'CCC';
--Short-term IDR at 'C';
--Commercial paper at 'B'.
Ford Credit Australia Ltd.
--Long-term IDR at 'CCC';
--Short-term IDR at 'C';
--Commercial paper at 'B'.
Ford Credit de Mexico, S.A. de C.V.
--Long-term IDR at 'CCC'.
Ford Credit Co S.A. de CV
--Long-term IDR at 'CCC'
Ford Motor Credit Co. of New Zealand
--Long-term IDR at 'CCC';
--Short-term IDR at 'C';
--Commercial paper at 'C'.
Ford Motor Credit Co. of Puerto Rico, Inc.
--Short-term IDR at 'C'.
The following ratings have been revised:
Ford Motor Credit Company LLC
FCE Bank Plc
Ford Capital B.V.
Ford Credit Canada Ltd
Ford Credit Co S.A. de CV
Ford Motor Credit Co. of New Zealand
--Senior unsecured to 'B/RR2' from 'B-/RR2'.
Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, 'www.fitchratings.com'.
Published ratings, criteria and methodologies are available from
this site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code
of Conduct' section of this site.
KLEENMAID GROUP: Court Orders Luxury Cars Returned
--------------------------------------------------
The Australian Associated Press reports that the Supreme Court
ordered the wife of former Kleenmaid director Andrew Young to
return two luxury vehicles to the company's liquidators.
The AAP relates that in the Brisbane Supreme Court hearing on
Wednesday, lawyers representing Kleenmaid liquidator Deloitte
sought for an order to have Linda Young return to them an Audi and
a Lexus she claimed were legally hers.
According to the AAP, the lawyers argued the luxury vehicles were
in the asset register under a company named Orchard KM - which was
under the umbrella of the Kleenmaid group when it went into
voluntary administration.
The report relates that the court heard Ms. Young had shares in
Orchard KM and that she asserted the company had legally sold her
the vehicles, which were now registered under her name.
However, says the AAP, lawyer for liquidator Deloitte, Vince
Brennan, told the court that despite several attempts since June
to see evidence of a legal transfer Ms. Young had only ever
asserted the vehicles were hers and had never offered proof.
The AAP states that Ms. Young's lawyer sought to have the matter
adjourned to give Ms. Young more time to give evidence before the
court. However, Justice Peter Applegarth denied the application
saying she had already had plenty of time.
Justice Applegarth ordered Ms Young to return the vehicles to the
liquidators before August 31. Mr. Young was also ordered to pay
AU$10,000 in legal costs to the liquidators, the AAP says.
The Troubled Company Reporter-Asia Pacific reported on April 13,
2009, that Kleenmaid Group has been placed into administration.
The company appointed Deloitte partners John Greig, Richard Hughes
and David Lombe as voluntary administrators. A TCR-AP report on
May 26, 2009, said the creditors of Kleenmaid Group voted to wind
up the company at a meeting in Brisbane.
The TCR-AP, citing a report posted at news.com.au, said that the
administrators had recommended that Kleenmaid be put into
liquidation, saying the company may have been insolvent as early
as June 2007. The administrators said Kleenmaid creditors are now
owed AU$102 million, which included AU$3 million owed to Kleenmaid
employees.
Founded in 1985, Kleenmaid Group -- http://www.kleenmaid.com.au/
-- sells kitchen and laundry appliances.
SINO GOLD: Discloses AU$2.2BB Takeover Bid from Eldorado Gold
-------------------------------------------------------------
Sino Gold Mining Limited and Eldorado Gold Corporation have signed
a Scheme Implementation Deed under which Eldorado proposes to
acquire all of the issued and outstanding shares in Sino Gold that
it does not currently own via a Scheme of Arrangement under
Australian law.
In a joint statement, the companies stated that consideration for
the transaction will be Eldorado shares, with Sino Gold
shareholders offered 0.55 Eldorado shares for each Sino Gold share
they own. The transaction values Sino Gold at approximately
AU$2.2 billion (CDN$2.0 billion).
The Sino Gold directors unanimously recommend that Sino Gold
shareholders vote in favor of the proposed Scheme, and each
Director intends to vote all of the Sino Gold shares they own or
control at the date of the Scheme meeting in favor of the Scheme,
in the absence of a superior proposal and subject to an
independent expert concluding that the Scheme is in the best
interests of Sino Gold shareholders.
Eldorado will seek to establish an Australian listing of Eldorado
shares through ASX-listed CHESS Depositary Interests (CDIs) such
that Sino Gold shareholders can hold the Eldorado shares they
receive on the ASX (subject to the right to elect to receive TSX-
listed Eldorado shares if they desire).
The exchange ratio of 0.55 Eldorado shares for each Sino Gold
share represents a value of AU$7.244 per share based upon the
closing price of Eldorado on the TSX on August 25, 2009 of
CDN$11.96. This represents a premium of:
* 21.3% to the closing price of Sino Gold’s shares on the ASX
on August 25, 2009; and
* 32.3% to 30 (trading) day volume weighted average trading
price of Sino Gold’s shares on the ASX.
The exchange ratio also represents a premium of 23.8% based on
the 30 (trading) day volume weighted average trading prices of
Eldorado’s and Sino Gold’s shares on the TSX and ASX respectively.
After completion of the transaction, current Eldorado shareholders
will own approximately 75% of the merged company and current Sino
Gold shareholders (excluding Eldorado) will own approximately
25%; including Eldorado as a shareholder, Sino Gold’s ownership
would have reached approximately 30%.
Mr. Paul Wright, President & CEO of Eldorado, stated, "Eldorado
entered China in the fall of 2004 recognizing that China was
quickly emerging as the most important gold producing country in
the world. China is blessed with outstanding geological
potential, a supportive population and government and a strong
mining law. The business combination with Sino Gold enables
Eldorado to realize its vision of establishing a leading presence
in China. Eldorado and Sino Gold have similar approaches and
cultures based on establishing strong regional businesses through
empowerment of local management, responsible operations and
careful attention to maintaining long-term social license. We look
forward to welcoming Sino Gold employees and together continuing
to build the leading international gold producer in China."
Mr. Jake Klein, President & CEO of Sino Gold, added, "This
transaction is an exciting opportunity for the Sino Gold
shareholders to participate in the creation of a leading
intermediate gold producer with an international footprint and
exciting prospects. Sino Gold’s view is that the best value
creating opportunity for its shareholders is as part of leading
low-cost intermediate gold company, and we believe that this
merger with Eldorado gives our shareholders exposure to such a
company on attractive terms.
The combined entity will continue to benefit from a strong
exposure to China, one of the world’s most prospective gold-
producing countries, while benefiting from portfolio
diversification across Turkey, Greece and Brazil. The Sino Gold
team has worked hard to develop a highly successful business in
China and we look forward to the prospect of entering a new
development phase through our combination with Eldorado."
Management Team and Board of Directors
Eldorado will continue to be headquartered in Vancouver, British
Columbia. Eldorado’s intention is to retain a significant
regional office in Sydney, Australia, on consummation of the
Scheme.
Mr. Jake Klein, President & CEO of Sino Gold, will remain in his
position until the transaction closes, after which he will provide
consultancy services to Eldorado.
The Board of Directors of Eldorado will invite two directors from
the board of Sino Gold, including the current Chairman of Sino
Gold, James Askew, to join its board.
Scheme Implementation Deed
Sino Gold has entered into a Scheme Implementation Deed with
Eldorado under which Sino Gold has agreed to propose a Scheme
between Sino Gold and its shareholders for the acquisition of its
shares by Eldorado.
The transaction is subject to the completion of confirmatory due
diligence by Eldorado and Sino Gold prior to September 14, 2009.
To date, Eldorado has completed extensive technical due diligence
(including mine site visits) on Sino Gold.
The transaction is also subject to satisfaction of a number of
customary conditions precedent, including the receipt of required
regulatory and Australian court approvals, as well as the approval
of Sino Gold shareholders. Regulatory approvals include approval
by the Australian Foreign Investment Review Board and TSX, NYSE,
(and ASX) approvals in respect of the issue of new shares (CDIs)
by Eldorado under the Scheme.
The Scheme Implementation Deed contains certain customary terms
usual for a transaction of this nature including no shop and no
talk provisions, mutual break fee of AU$21 million payable in
certain circumstances, as well as providing Eldorado the right to
match a competing proposal.
Eldorado currently owns 57,968,029 Sino Gold shares, representing
19.8% of the issued and outstanding shares of Sino Gold.
It is Eldorado’s intention to seek a listing of the Eldorado CDIs
on the ASX, subject to applicable laws and regulation. In
addition, Sino Gold shareholders who are classified as retail
shareholders will have the ability to have the Eldorado shares
that they would have otherwise received aggregated and sold on
their behalf through a share sale facility.
Eldorado also proposes to acquire all outstanding Sino Gold
employee options via an options scheme of arrangement under
Australian law.
Advisors and Counsel for the Transaction
Eldorado's financial advisor is Macquarie Capital Advisors, its
Australian legal advisor is Freehills and its Canadian legal
advisor is Fasken Martineau DuMoulin LLP.
Sino Gold's financial advisor is Goldman Sachs JBWere, its
Australian legal advisor is Allens Arthur Robinson and its
Canadian legal advisor is Cassels Brock & Blackwell LLP.
About Eldorado Gold
Based in Canada, Eldorado Gold Corporation (TSE:ELD) --
http://www.eldoradogold.com/-- is a gold producer engaged in gold
mining and related activities including exploration, development,
extraction, processing and reclamation. The Company owns and
operates the Kisladag gold mine (Kisladag) in Turkey and the
Tanjianshan gold mine (TJS) in China, and is also developing gold
projects in Turkey and Greece, as well as an iron ore project in
Brazil.
About Sino Gold
Sino Gold Mining Limited -- http://www.sinogold.com.au -- is an
Australia-based company. The principal activities of the Company
are mining and processing of gold ore, and sale of recovered gold,
and exploration and development of mining properties. The Jinfeng
Gold Mine is located in Guizhou Province in southern China.
* * *
The company incurred three consecutive annual net losses of
AU$103.8 million, AU$23.5 million and AU$20.1 million for the
years ended December 31, 2008, 2007, and 2006, respectively.
=========
C H I N A
=========
CHINA LOGISTICS: Earns US$137,680 for Three Months Ended June 30
--------------------------------------------------------------
China Logistics Group Inc. reported a net income of US$137,680 for
three months ended June 30, 2009, compared with a net income of
US$174,712 for the same period in 2008.
For six months ended June 30, 2009, the Company posted a net loss
of US$274,142 compared with a net income of US$502,250 for the
same period in 2008.
The Company's balance sheet at June 30, 2009 showed total assets
of US$7.07 million, total liabilities of US$5.60 million and an
equity of US$1.47 million.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?4307
On May 18, 2009, Sherb & Co., LLP, in Boca Raton, Florida,
expressed substantial doubt about China Logistics Group Inc.'s
ability to continue as a going concern after auditing the
Company's financial statements for the fiscal years ended Dec. 31,
2008 and 2007. The auditors noted that the Company has incurred a
loss and has negative cash flows from operations for the year
ended Dec. 31, 2008.
The Company added that its ability to continue as a going concern
is dependent upon its ability to become cash flow positive or
obtain the necessary financing to meet its obligations and repay
its liabilities arising from normal business operations when they
become due and to generate profitable operations in the future.
About China Logistics
China Logistics Group Inc. (OTC BB: CHLO) through its subsidiary,
Shandong Jiajia International Freight & Forwarding Co. Ltd.,
operates as a non-asset based international freight forwarder and
logistics management company in the People's Republic of China.
The Company was founded in 1997 and is based in Fort Lauderdale,
Florida.
EAST STAR: CEG Plans to Re-launch Firm with CNY300MM Investment
---------------------------------------------------------------
Katie Cantle at ATW Daily News reports that China Equity Group
plans to re-launch East Star Airlines with up to CNY300 million
investment.
According to the report, CEG Chairman Wang Chaoyong revealed that
the group plans to raise the money to restart the troubled carrier
in conjunction with seven other companies, including Shanghai
YuField. ATW relates Mr. Wang said CEG has submitted the
reorganization application to the appropriate court and it expect
to get the result in the next two or three weeks.
If CEG's plan is approved, the report notes, the reorganized
airline's stakeholders are expected to include parent company East
Star Group, which currently has a 40% holding, as well as CEG and
some of the carrier's debtors.
ATW discloses that based on the reorganization plan, East Star
will operate three aircraft initially with a focus on regional
tourism in the middle part of China, allowing it to avoid
competition with the country's major airlines.
As reported in the Troubled Company Reporter-Asia Pacific on
March 30, 2009, Xinhua News Agency said that East Star Airlines's
creditors sent bankruptcy applications for the company to the
Intermediate People's Court in Wuhan City, capital of Hubei
Province.
Bloomberg News, citing Wu Yue, an attorney at Grandall Lagal
Group, relates that the airline has total debts of more than
CNY500 million.
The TCR-AP, citing Reuters, reported on March 17, 2009, that the
General Administration of Civil Aviation of China (CAAC) ordered
private carrier East Star Airlines to suspend its operations on
March 15 due to unpaid debts and for "poor internal management".
Headquartered in Wuhan, Hubei Province, East Star Airlines is
China's fourth registered private airline. East Star flew its
first flight on May 19, 2006. The airline has 10 rented planes,
seven A320 and three A319, and operated more than 20 domestic
passenger routes between key cities including Shanghai, Guangzhou,
Hong Kong, Macao.
SHANDONG ZHOUYUAN: Earns US$165,105 in Three Months Ended June 30
---------------------------------------------------------------
Shandong Zhouyuan Seed and Nursery Co., Ltd., disclosed in a
filing with the Securities and Exchange Commission its financial
results for the three and six months ended June 30, 2009.
For three months ended June 30, 2009, the Company reported a net
income of US$165,105 compared with a net loss of US$98,886 for the
same period in 2008.
For six months ended June 30, 2009, the Company posted a net loss
of US$329,535 compared with a net income of US$221,157 for the
same period in 2008.
The Company's balance sheet at June 30, 2009, showed total assets
of US$3.34 million, total liabilities of US$1.36 million and
stockholders' equity of US$1.98 million.
A full-text copy of the Company's Form 10-Q is available for free
at http://ResearchArchives.com/t/s?42ad
On May 5, 2009, Kempisty & Company in New York City expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statements
for the fiscal year ended Dec. 31, 2008, and 2007. The auditors
noted that the Company has negative cash flows from operations, a
working capital deficiency of US$412,373 and an accumulated
deficit of US$2,117,908 at Dec. 31, 2008.
The Company also said that the recoverability of a major portion
of the recorded asset amounts is dependent upon continued
operations of the Company, which in turn is dependent upon the
Company's ability to raise additional capital, obtain financing
and succeed in its future operations.
About Shandong Zhouyuan
Shandong Zhouyuan Seed and Nursery Co. Ltd. (OTC BB: SZSN) --
http://www.chinaseedcorp.com/-- was originally incorporated in
the State of North Carolina. The Company, through its
consolidated subsidiary, Shandong Zhouyuan Seed and Nursery Co.
Ltd., a company formed under the laws of the People's Republic of
China, is engaged in the business of developing, distributing and
selling agricultural seeds in China.
The company's executive offices are located at Laizhou, Shandong
Province, People's Republic of China.
SHIMAO PROPERTY: S&P Gives Stable Outlook; Affirms 'BB' Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on China-
based property developer Shimao Property Holdings Ltd. to stable
from negative. At the same time, it affirmed the 'BB' long-term
corporate credit rating on Shimao and the 'BB-' issue rating on
the company's US$250 million floating rate senior unsecured notes
due 2011 and US$350 million fixed rate senior unsecured note due
2016.
"We revised the outlook and affirmed the ratings to reflect an
improvement in the company's liquidity and materially reduced
refinancing risk as a result of stronger-than-expected property
sales year to date, better funding access, and the removal of the
pressure from the syndicated loan covenant after full repayment in
July 2009," said Standard & Poor's credit analyst Christopher Lee.
The stable outlook reflects S&P's expectation that Shimao will
generate satisfactory property sales and control its expansion and
land acquisition such that its credit metrics are supportive of
its 'BB' rating.
Shimao's liquidity has improved with strong sales, recent equity
fund-raising, and better access to domestic credit, which in S&P's
view has provided a good buffer in a continued volatile economic
environment. S&P believes the company's improved cash position is
more than sufficient to cover its capital expenditure, inclusive
of committed land premium, due within 2009.
In the first half of 2009, property sales reached RMB13.2 billion,
compared with the company's target of RMB20 billion for the full
year. S&P don't expect property sales in the next 12 months to be
as strong as that in the first half, which was driven in part by
pent-up demand. Nevertheless, demand should be good, supported by
government policies and Shimao's geographically diversified
projects, Mr. Lee said.
"Shimao's financial flexibility has strengthened and, in S&P's
view, it now has greater headroom to manage its financial
position," Mr. Lee noted.
Repayment of the US$328 million syndicated loan in July has
removed restrictive covenants, which had put pressure on the
company's operations and financial flexibility.
S&P believes the company will be less aggressive with debt-funding
of land acquisitions and capital expenditures. S&P expects the
construction cost increase in 2009 to be partially financed by the
stronger cash sales and large unutilized credit lines. S&P also
expects land acquisition activities to increase later in 2009 and
into 2010 as market sentiment begins to improve from the bottom of
2008.
================
H O N G K O N G
================
ASCENT VANTAGE: Creditors' Meeting Set for August 31
----------------------------------------------------
The creditors of Ascent Vantage Limited will hold their meeting
August 31, 2009, at 11:00 a.m., for the purposes provided in
Sections 241, 242, 243, 244, 251 and 255A of the Companies
Ordinance.
The meeting will be held at the 8th Floor of Li Po Chun Chambers,
189 Des Voeux Road, in Central, Hong Kong.
BRAND NEW: Members and Creditors to Hold Meeting on September 18
----------------------------------------------------------------
The members and creditors of Brand New Group Limited will hold
their meeting on September 18, 2009, at 3:00 p.m. and 3:30 p.m.,
respectively, at Rooms 1214-1215, 12th Floor, Tower A, New
Mandarin Plaza, in 14 Science Museum Road, Kowloon.
At the meeting, Kong Tak Yuen and Chung Cheuk Ming, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
CHINA STATE: Placed Under Voluntary Wind-Up
-------------------------------------------
On August 13, 2009, the members of The China State Trustee Limited
passed a resolution that voluntarily winds up the company's
operations.
The company's liquidator is:
Leung Fung Yee Alice
Jardine House, 5th Floor
1 Connaught Place, Central
Hong Kong
CITIC PACIFIC: 1H Profit Drops 43% to HK$2.47 Billion
-----------------------------------------------------
Joyce Li at Dow Jones Newswires reports that Citic Pacific Ltd.
posted a 43% fall in its first-half net profit.
Dow Jones relates the conglomerate, which suffered massive losses
from Australian dollar positions that went sour late last year,
said its net profit was HK$2.47 billion (US$318.7 million) in the
six months ended June 30, down from HK$4.36 billion a year
earlier.
Dow Jones says the earnings decline mostly resulted from a 72%
drop in contributions from the company's steel division to HK$524
million, as the financial crisis hurt demand.
Revenue for the first half through June fell 32% to HK$18.1
billion, compared with HK$26.67 billion a year earler, Dow Jones
notes.
About CITIC Pacific
Headquartered in Hong Kong, CITIC Pacific Ltd --
http://www.citicpacific.com/-- is engaged in a range of
businesses in China and Hong Kong, including steel manufacturing,
property development and investment, power generation, aviation,
infrastructure, communications and distribution. It is 29%
indirectly owned by China International Trust & Investment
Corporation.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
August 20, 2009, Moody's Investors Service sees no immediate
impact on the Ba1 corporate family rating of CITIC Pacific Ltd.
and the Ba1 bond rating of CITIC Pacific Finance (2001) Ltd after
the announced sale of CITIC Pacific's 14.5% stake in Cathay
Pacific Airways Ltd for about HK$7.3 billion. The outlook on
these ratings remains negative.
Standard & Poor's Ratings Services also said that its rating on
CITIC Pacific Ltd. (BB+/Stable/--) was not immediately affected by
the company's plan to sell 12.5% and 2% of its stake in Cathay
Pacific Airways Ltd. (not rated) to Air China Ltd. (not rated) and
Swire Pacific Ltd. (A-/Stable/--), respectively, for a total
consideration of about Hong Kong dollar HK$7.3 billion. In
S&P's view, although the proceeds from the disposal will improve
CITIC Pacific's liquidity position, its credit profile is unlikely
to change materially as the company's core businesses--iron ore,
special steel and real estate in China--still require high capital
expenditure in the coming year. S&P expects the company's debt
leverage, as measured by a ratio of total debt to total capital,
to remain at about 50%. CITIC Pacific also continues to generate
negative free operating cash flow after capex.
On Feb. 17, 2009, the TCR-AP reported that Standard & Poor's
Ratings Services raised its long-term corporate credit rating on
CITIC Pacific Ltd. to 'BB+' from 'BB'. The outlook is stable. At
the same time, Standard & Poor's also raised its issue rating on
the senior unsecured notes issued by CITIC Pacific Finance (2001)
Ltd. to 'BB+' from 'BB'; the notes are guaranteed by CITIC
Pacific. Both ratings were removed from CreditWatch, where they
were placed with developing implications on Nov. 14, 2008. They
were originally placed on CreditWatch with negative implications
on Oct. 21, 2008.
HONG WANG: Court to Hear Wind-Up Petition on September 30
---------------------------------------------------------
A petition to wind up the operations of Hong Wang Jewellery
Limited will be heard before the High Court of Hong Kong on
September 30, 2009, at 9:30 a.m.
Chan Wai Fong filed the petition against the company on July 27,
2009.
NEO-CHINA LAND: Chairman Stepdown Won't Move Moody's 'Caa3' Rating
------------------------------------------------------------------
Moody's Investors Service says there is no immediate impact on
Neo-China Land Group (Holdings) Ltd's Caa3 corporate family and
senior unsecured ratings. This follows the company's announcement
regarding the resignation of the Chairman, Mr. Li Song Xiao, who
is also the major shareholder, and the appointment of the
President, Mr. Liu Yi, as the new Chairman.
The ratings outlook remains negative.
"Although the resignation of the Chairman is unlikely to lead to
any material changes in Neo-China's business fundamentals, it
could create further uncertainty over the company's future
strategy and organizational structure which will add to concerns
over the prolonged share trading suspension and ICAC
investigation," says Kaven Tsang, a Moody's AVP/Analyst.
"Nevertheless, this high level of uncertainty has already been
captured by Neo-China's current Caa3 ratings and negative
outlook," says Tsang, also Moody's lead analyst for the company.
The existing ratings further reflect Neo-China's tight liquidity
position with high refinancing needs, including short-term bank
borrowings and loan payables totaling over RMB3 billion.
"While Neo-China's disposal of equity interests in several
projects over the past 3 months could to a certain extent mitigate
its liquidity pressure, its reduced land bank reserves will
inhibit its ability to generate cash flow," adds Tsang.
Moody's last rating action with regard to Neo-China occurred on
February 20, 2009, when the company's ratings were upgraded from
Ca to Caa3 with a negative outlook, after it made up for the
missed coupon payment within the grace period.
Neo-China Land Group (Holdings) Ltd is a Chinese property
developer engaged in residential and mixed-use developments. It
has 14 major projects under development in 11 cities in China and
a land bank of around 11.5 million sqm in gross floor area.
POWER STRAIGHT: Court to Hear Wind-Up Petition on October 14
------------------------------------------------------------
A petition to wind up the operations of Power Straight Limited
will be heard before the High Court of Hong Kong on October 14,
2009, at 9:30 a.m.
Bank of China (Hong Kong) Limited filed the petition against the
company on July 29, 2009.
The Petitioner's solicitors are:
K. W. Ng & Co.
Wings Building, 11th Floor
110 Queen's Road Central
Hong Kong
PUBLISHERS ASSOCIATES: Court to Hear Wind-Up Petition on Sept. 23
-----------------------------------------------------------------
A petition to wind up the operations of Publishers Associates
Limited will be heard before the High Court of Hong Kong on
September 23, 2009, at 9:30 a.m.
Taikoo Place Holdings Limited filed the petition against the
company on July 17, 2009.
The Petitioner's solicitor is:
JSM
Prince's Building, 18th Floor
10 Chater Road, Central
Hong Kong
TREASURE MANAGEMENT: To Hold Annual Meetings on September 1 & 2
---------------------------------------------------------------
The creditors and contributories of Treasure Restaurant Company
Limited will hold their annual meetings on September 1 and 2,
respectively, at 9:20 a.m.
The meetings will be held at the Conference Room, Room 1302 of
Wing On Centre, 13th Floor, No. 111 Connaught Road, in Central,
Hong Kong.
TREASURE RESTAURANT: To Hold Annual Meetings on September 1 & 2
---------------------------------------------------------------
The creditors and contributories of Treasure Floating Restaurant
Limited will hold their annual meetings on September 1 and 2,
respectively, at 9:00 a.m.
The meetings will be held at the Conference Room, Room 1302 of
Wing On Centre, 13th Floor, No. 111 Connaught Road, in Central,
Hong Kong.
TREASURE SEAFOOD: To Hold Annual Meetings on September 1 & 2
------------------------------------------------------------
The creditors and contributories of Treasure Seafood Restaurant
Limited will hold their annual meetings on September 1 and 2, at
10:00 a.m. and 9:40 a.m., respectively.
The meetings will be held at the Conference Room, Room 1302 of
Wing On Centre, 13th Floor, No. 111 Connaught Road, in Central,
Hong Kong.
WINMACK INTERNATIONAL: Cowley and Muk Step Down as Liquidators
--------------------------------------------------------------
On August 13, 2009, Patrick Cowley and Jacky Chung Wing Muk
stepped down as liquidators of Winmack International Investment
Limited.
=========
I N D I A
=========
AGIO PHARMACEUTICALS: Loan Default Prompts CRISIL 'D' Ratings
-------------------------------------------------------------
CRISIL has assigned its ratings of 'D/P5' to the bank facilities
of Agio Pharmaceuticals Ltd.
Facilities Ratings
---------- -------
INR250 Million Term Loans D (Assigned)
INR120 Million Cash Credit D (Assigned)
INR60 Million Bill Discounting P5 (Assigned)
INR5 Million Standby Facility P5 (Assigned)
INR115 Million Letter of Credit P5 (Assigned)
INR7.5 Million Bank Guarantee P5 (Assigned)
The ratings reflect default by Agio Pharma in the repayment of its
term loan instalments because of weak liquidity.
About Agio Pharmaceuticals
Incorporated in January 1992 and promoted by Mr. Madhusudhan Ruia,
Agio Pharma is a recognized pharmaceutical exporter. It initially
marketed the products of other pharmaceutical companies.
Subsequently, it began manufacturing its own products and
exporting them to Russia and the Commonwealth of Independent
States (CIS). To reduce its dependence on these markets, which
contributed more than 90 per cent to its export revenues in 2006-
07 (refers to financial year, April 1 to March 31), Agio Pharma
has expanded to markets in Africa, Southeast Asia, and Latin
America. The company is also developing new products and
registering them in several geographies. It has tied up with
distributors in countries such as Kenya and the Philippines. The
company has also expanded in the domestic formulations market with
a field force of 500 people.
For 2008-09, Agio Pharma's profit after tax (PAT) is estimated at
INR12 million on estimated net sales of INR818 million, as against
a reported PAT of INR4.9 million on net sales of INR707 million
for 2007-08.
AIR INDIA: Says Employees to Get Salaries & Wages on Time
---------------------------------------------------------
The Times of India reported that the management of Air India Ltd
said there would be no delay in disbursal of salaries and wages
this month.
"Air India will disburse the August wages/salaries to its
employees on schedule, that is on the last day of the month, as is
the practice," an airline spokesperson was quoted by the Times as
saying.
The report says the announcement came as unions began negotiations
with the management in New Delhi on issues like productivity-
linked incentives (PLI), flying and other allowances.
The Troubled Company Reporter-Asia Pacific earlier reported that
more than 20,000 members of Air India Ltd employee's unions have
decided to go on a three-day hunger strike from Tuesday, Aug. 25.
Air India has suggested an up to 50% cut from next month in
productivity-linked incentive (PLI) given to employees. Many
employee unions are opposing the proposal. The employees
threatened that they would again strike work on August 31 if their
negotiations with the management fail.
As reported in the TCR-AP on June 10, 2009, the National Aviation
Company of India Ltd., the holding company for the carrier, was
seeking INR14,000 crore in equity infusion, soft loans and grants.
The TCR-AP reported on June 19, 2009, that Air India has been
bleeding due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown. Air India's losses have almost doubled to over INR4,000
crore in 2008-09 (INR2,226 crore in 2007-08) and it does not have
the money to foot the INR350-crore monthly salary bill of its
31,500 employees, according to the Hindustan Times.
A TCR-AP report on July 10, 2009, said NACIL is working overtime
to prepare by the month-end a business plan and a financial
restructuring plan. NACIL is also expected to come up with plans
for the next six months, 12 months and 18 months for bringing in
cost reduction and improving revenue generation.
About Air India
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.
BEST CHERAN: CRISIL Downgrades Rating on Various Loans to 'D'
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Best
Cheran Spintex India Ltd to 'D/P5' from 'BB-/Negative/P4', as the
company has delayed the repayment of some of its rated long-term
debt because of weak liquidity. Besides the credit strengths and
weaknesses, the earlier ratings were based on Best Cheran's
management's declaration that the company was meeting, all its
financial obligations on a timely basis. However, CRISIL has now
been informed that the company has been delaying on its debt
obligations for some time, which indicates that the company's
management had provided incorrect declarations to CRISIL regarding
timely debt servicing.
Facilities Ratings
---------- -------
INR283.0 Million Long Term Loan D (Downgraded from
BB-/Negative)
INR60.0 Million Cash Credit Limits D (Downgraded from
BB-/Negative)
INR38.0 Million Letter of Credit & P5 (Downgraded from P4)
Bank Guarantee Limits
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Best Cheran and Cheran Spinner Ltd
(Cheran Spinner); this is because both companies are part of the
same group (the Cheran group), are engaged in the same line of
business (manufacture of viscose yarn), and have centralised
arrangements for management and decision making, procurement of
raw materials, and marketing. The companies have also extended
support to each other in exigencies.
About the Group
The Cheran group, consisting of Cheran Spinner and Best Cheran, is
promoted by Mr. R Pongianna Gounder. Set up in 1991, and
headquartered at Erode (Tamil Nadu), the group is engaged in
manufacturing and exporting of viscose and viscose-blended yarn.
It has a combined capacity of 36,000 spindles and 2880 rotors.
For the year ended March 31, 2009, the group is estimated to have
incurred a net loss of INR50 million on estimated net sales of
INR1.13 billion, as against a reported net loss of INR16.76
million on net sales of INR1.19 billion for 2007-08.
CERAFLUX INDIA: CRISIL Places 'BB-' Rating on INR44 Mln Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4' ratings to the bank
facilities of Ceraflux India Pvt Ltd.
Facilities Ratings
---------- -------
INR57.5 Million Cash Credit** BB-/Stable (Assigned)
INR44.0 Million Term Loan# BB-/Stable (Assigned)
INR5.0 Standby Line of Credit BB-/Stable (Assigned)
INR8.5 Million Letter of Credit P4 (Assigned)
and Bank Guarantee@
INR2.5 Standby Line of Credit* P4 (Assigned)
* SME Credit Plus, available to the company for three month
period on demand
**Includes Proposed of INR 20.00 Million
#Includes Proposed of INR 30.00 Million
@includes proposed INR 6 Million
The ratings reflect CIPL's small scale of operations, relatively
large working capital requirements, exposure to raw material price
volatility, and moderate financial risk profile marked by a low
net worth and moderate gearing and debt protection measures. The
ratings also factor in the fragmented nature of the industrial
chemicals and alloys industry. The impact of these weaknesses is
mitigated by the company's diverse revenue profile, and the
benefits it derives from the promoters' industry experience.
Outlook: Stable
CRISIL believes that CIPL's scale of operations will remain small,
and its financial risk profile, moderately weak, over the medium
term. The outlook may be revised to 'Positive' if the company's
scale of operations and financial risk profile improve
significantly. Conversely, the outlook may be revised to
'Negative' in case CIPL's financial risk profile deteriorates
because of large, debt-funded capital expenditure.
About Ceraflux India
CIPL was incorporated in 1995. The company, managed by its
promoters Mr. Uday Thite, Mr. Sanjeev Tungatkar, Mr. V Jadhav, and
Mr. S R Kadukar, is into manufacturing of various industrial
chemicals and alloys, such as degassers, fluxes, grain refiners,
refractors materials, coatings, and master alloys. The company
has two manufacturing units at Kolhapur (Maharashtra). In 2008-09
(refers to financial year, April 1 to March 31), the company
derived about 75 per cent of its revenues from the non-ferrous
industry, and the balance from the ferrous industry.
CIPL reported a profit after tax (PAT) of INR9.9 million on net
sales of INR121.2 million for the year ended March 31, 2008,
against a PAT of INR8.5 million on net sales of INR95.2 million
for the year ended March 31, 2007.
CHERAN SPINNER: CRISIL Cuts Rating on INR110.3MM LT Loan to 'D'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Cheran
Spinner Ltd to 'D/P5' from 'BB-/Negative/P4', as the company has
delayed the repayment of some of its rated long-term debt because
of weak liquidity. Besides the credit strengths and weaknesses,
the earlier ratings were based on Cheran Spinner's management's
declaration that the company was meeting, all its financial
obligations on a timely basis. However, CRISIL has now been
informed that the company has been delaying on its debt
obligations for some time, which indicates that the company's
management had provided incorrect declarations to CRISIL regarding
timely debt servicing.
Facilities Ratings
---------- -------
INR110.3 Million Long Term Loan D (Downgraded from
BB-/Negative)
INR163.7 Million Cash Credit Limits D (Downgraded from
BB-/Negative)
INR100.0 Million Letter of Credit P5 (Downgraded from P4)
Limits
INR7.5 Million Bank Guarantee Limits P5 (Downgraded from P4)
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Cheran Spinner and Best Cheran Spintex
India Ltd; this is because both companies are part of the same
group (the Cheran group), are engaged in the same line of business
(manufacture of viscose yarn), and have centralised arrangements
for management and decision making, procurement of raw materials,
and marketing. The companies have also extended support to each
other in exigencies.
About the Group
The Cheran group, consisting of Cheran Spinner and Best Cheran, is
promoted by Mr. R Pongianna Gounder. Set up in 1991, and
headquartered at Erode (Tamil Nadu), the group is engaged in
manufacturing and exporting of viscose and viscose-blended yarn.
It has a combined capacity of 36,000 spindles and 2880 rotors.
For the year ended March 31, 2009, the group is estimated to have
incurred a net loss of INR50 million on estimated net sales of
INR1.13 billion, as against a reported net loss of INR16.76
million on net sales of INR1.19 billion for 2007-08.
COMPAGNIE INDO: Low Net Worth Cues CRISIL to Assign 'BB+' Rating
----------------------------------------------------------------
CRISIL's ratings on Compagnie Indo Francaise De Commerce Pvt Ltd
continue to reflect the company's low net worth and its customer
concentration risk. These weaknesses are mitigated by the
longstanding experience of CIFC's promoters in the fertiliser
trading business.
Facilities Ratings
---------- -------
INR90 Million Cash Credit BB+/Stable (Reaffirmed)
INR970 Million Letter of Credit* P4 (Reaffirmed)
* Including a sub limit of INR50 million Bank guarantee.
Outlook: Stable
CRISIL expects Compagnie Indo Francaise De Commerce Private
Limited to maintain its business risk profile, with continued
focus on improving the contribution from exports and diversifying
its product mix, backed by its established relationships with key
clients. The outlook may be revised to 'Positive' if CIFC
enhances its scale of operations, adding more diversity in its
sourcing tie-ups and clientele, resulting in stability in the
company's profitability. Conversely, the outlook may be revised
to 'Negative' if the company faces significant pricing risk
because of trading on its own account, undertakes large debt-
funded capital investment, or reports increased pressure on
profitability.
About Compagnie Indo
CIFC was promoted by the late Mr. Amir Ali Rahimtula, father of
the present Managing Director Mr. H N Rahimtula, in 1967. The
company is wholly owned by the Rahimtula family. CIFC has been
running an agency for import of fertilisers on commission basis
for the past 42 years. Since 2004, the company started trading in
fertiliser. The company has long-term contracts with its
suppliers and buyers for these products. The buyers of CIFC
include IFFCO and Indian Potash Limited, which together
contributed about 60% to the operating income of CIFC in 2007-08
(refers to financial year, April 1 to March 31)
For 2007-08, CIFC reported a profit after tax (PAT) of INR6.9
million on net sales of INR3815 million, as against a PAT of
INR2.6 million on net sales of INR1730 million in the previous
year.
FLOVEL MECAMIDI: CRISIL Puts 'BB' Ratings on Various Bank Loans
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4' ratings to the bank
facilities of Flovel Mecamidi Energy Pvt Ltd.
Facilities Ratings
---------- -------
INR40.0 Million Cash Credit Limit BB/Stable (Assigned)
INR125.0 Million Term Loan BB/Stable (Assigned)
INR690.0 Million Letter of Credit P4 (Assigned)
INR205.0 Million Proposed Short P4 (Assigned)
Term Bank Loan Facility
The ratings reflect FMEPL's small scale of operations and limited
track record. The impact of these weaknesses is mitigated by the
company's improving financial risk profile, and higher revenue
visibility because of its healthy order book.
Outlook: Stable
CRISIL expects FMEPL to maintain its business and financial risk
profiles, given its healthy order book, which is expected to be
executed over the medium term. The outlook may be revised to
'Positive' if the company stabilises its operations sooner than
expected and ramps up its volumes significantly. Conversely, the
outlook may be revised to 'Negative' if the company undertakes
large debt-funded capital expenditure (capex) programme, resulting
in deterioration in its financial risk profile.
About Flovel Mecamidi
FMEPL is a 75:25 joint venture between Flovel MG Holdings Pvt Ltd
(FMGHPL) and Mecamidi SA, of France. The company designs,
manufactures, installs and field tests the turbines and other
relevant auxiliary equipment on a turnkey basis. FMEPL's
promoter, Mr. Maharaj Kar, has extensive experience in executing
small and medium-sized hydropower projects.
For the year ended March 31, 2009, FMEPL reported a profit after
tax (PAT) of INR25 million on net sales of INR582 million, against
a loss of INR7 million on net sales of INR62 million in the
preceding year.
NAMAN MALL: CRISIL Rates INR400MM Rupee Term Loans at 'D(so)'
-------------------------------------------------------------
CRISIL has downgraded its rating on the term loans of Naman Mall
Management Company Pvt Ltd to 'D (so)' from 'BB (so)/Stable'.
Facilities Ratings
---------- -------
INR400 Million Rupee Term Loans D (so) (Downgraded from
'BB(so)/Stable')
The downgrade reflects Naman's inability to service its debt in a
timely manner due to the high, sustained pressure on its
operational liquidity. The downgrade also factors in the
substantial variation in information provided by the company at
the time of initial rating and during the review of the rating.
The lease rentals received by Naman for its Indore Central Mall
are considerably lower, and the interest payouts substantially
higher, than what the company had indicated earlier, resulting in
significant stress on the company's liquidity position.
About Naman Mall
Naman was incorporated by the Entertainment World Developers Pvt
Ltd (EWDPL) group and Kshitij Venture Capital Fund to construct
the Indore Central Mall. The company has completed the
construction and has leased out the property. EWDPL is promoted
by the Indore-based Kalani group, which has interests in
manufacture of flexible intermediate bulk container bags, cement
pressure pipes and cement sheets, wind energy, and real estate
development.
RAMEE HOTELS: CRISIL Assigns 'D' Rating on INR1.04BB Term Loan
--------------------------------------------------------------
CRISIL has assigned its rating of 'D' to the INR1.04 billion rupee
term loan of Ramee Hotels Pvt Ltd. The rating reflects delays by
Ramee in repayment of its term loan obligations. The delays have
taken place as the group has been utilizing the accruals from
existing operations for the funding requirements of other large
projects currently being executed by them, which are yet to
commence commercial operations.
CRISIL has consolidated the business and financial risk profiles
of Ramee, Ramani Hotels Ltd, and Creative Hotels Pvt Ltd. This is
because the three companies have a common management and brand
(Ramee Guestline Hotels) and derive considerable business and
operational synergies from each other. Timely completion of the
group's projects without any significant cost overruns could, in
CRISIL's view, relieve the pressure on Ramee's liquidity and
eventually contribute towards curing the default, and improvement
in credit profile.
About Ramee Hotels
Ramee and RHL are part of the large Ramee group of hotels, which
has 32 hotels worldwide, including 5 in India. The group is
focused on the Middle East and Gulf countries such as Bahrain,
United Arab Emirates, and Oman, and has interests in hospitality,
real estate, and construction. In India, the group has a good
brand presence in the Mumbai market, where it operates three
hotels; the company's other two properties are in Bangalore and
Tirupati. The group is promoted by the Shetty family, and is
headed by its Chairman, Mr. V M Shetty.
RAMANI HOTELS: Delays in Loan Repayment Prompt CRISIL 'D' Ratings
-----------------------------------------------------------------
CRISIL has assigned its rating of 'D' to the bank facilities of
Ramani Hotels Ltd.
Facilities Ratings
---------- -------
INR300 Million Long Term Loan D (Assigned)
INR10.0 Million Proposed Long D (Assigned)
Term Loan
The rating reflects delays by Ramani in repayment of its term loan
obligations. The delays have taken place as the group has been
utilising the accruals from existing operations for the funding
requirements of other large projects currently being executed by
them, which are yet to commence commercial operations.
CRISIL has consolidated the business and financial risk profiles
of Ramani, Ramee Hotels Pvt Ltd, and Creative Hotels Pvt Ltd. This
is because the three companies have a common management and brand
(Ramee Guestline Hotels) and derive considerable business and
operational synergies from each other. Timely completion of the
group's projects without any significant cost overruns could, in
CRISIL's view, relieve the pressure on Ramani's liquidity and
eventually contribute towards curing the default, and improvement
in credit profile.
About Ramani Hotels
Ramani and RHPL are part of the large Ramee group of hotels, which
has 32 hotels worldwide, including 5 in India. The group is
focused on the Middle East and Gulf countries such as Bahrain,
United Arab Emirates, and Oman, and has interests in hospitality,
real estate, and construction. In India, the group has a good
brand presence in the Mumbai market, where it operates three
hotels; the company's other two properties are in Bangalore and
Tirupati. The group is promoted by the Shetty family, and is
headed by its Chairman, Mr. V M Shetty.
SHREE BALAJI: CRISIL Puts Junk Ratings on Various Bank Facilities
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Shree
Balaji Engicons Pvt Ltd to 'D/P5' from 'BB/Stable/P4', as the
company has defaulted on some of its term loan obligations due to
weak liquidity.
Facilities Ratings
---------- -------
INR32.50 Million Cash Credit Limits D (Downgraded from
'BB/Stable')
INR4.80 Million Standby Line of Credit D (Downgraded from
'BB/Stable')
INR91.60 Million Term Loan* D (Downgraded from
'BB/Stable')
INR291 Million Bank Guarantee P5 (Downgraded from
'P4')
*Out of this, INR22 million is proposed.
About Shree Balaji
Shree Balaji was set up as a partnership firm in 1993 by Mr. Anil
Agarwal, his three brothers and mother. In 1998, the firm was
reconstituted as a private limited company. It undertakes civil
construction, road construction, and related jobs. Shree Balaji's
activities are restricted to Orissa; the company is a super class
contractor of Public Works Department, Orissa. The company also
owns a petrol pump.
For the year ended March 31, 2009, Shree Balaji reported a profit
after tax (PAT) of INR34.3 million on revenues of INR1173 million,
as against a PAT of INR10.3 million on revenues of INR389 million
for 2007-08.
TATA CHEMICALS: Denies Merger Plans with Rallis India
-----------------------------------------------------
Tata Chemicals Ltd doesn't have any plans to combine with
pesticide maker Rallis India Ltd in the near future, livemint.com
reports citing R. Mukandan, managing director of Tata Chemicals.
Citing unidentified people familiar with the matter, the "Business
Standard" reported on August 19 that the Tata group is considering
merging Rallis India with its Tata Chemicals unit.
Tata Chemicals has decided to increase its equity shareholding in
Rallis India by offering to purchase equity shares from other
qualifying "Promoter Group" Tata companies (i.e., Tata Tea, Tata
Sons, Tata Investment Corporation and Ewart Investments) through
inter-se transfer of shares.
Tata Chemicals on August 12 approved a proposal to purchase up to
35.80% shares from other promoter group companies as inter-se
transfer amongst the qualifying promoters at a price which will be
determined in accordance with the applicable SEBI (Substantial
Acquisition of Shares & Takeover) Regulations 1997 (SAST
Regulations) and the Rules of the Stock Exchanges, if applicable
but in any event not exceeding INR850 per equity share.
About Tata Chemicals
Tata Chemicals Limited is a global company with interests in
chemicals, crop nutrition and consumer products. The Company is
engaged in producing soda ash. The Company operates in two
segments: Inorganic Chemicals and Fertilisers. The Inorganic
Chemicals segment comprises Industrial Chemicals and Consumer
Products. The products produced by the Inorganic Chemicals
segment include soda ash, sodium bicarbonate, sodium tri poly
phosphate and cement. The Fertilizer segment comprises three
business units: Crop Nutrition, which is a manufacturer and
marketer of crop nutrients; Agri-business, which through the Tata
Kisan Sansar retail network, operates farm centers offering
agricultural inputs and agri solutions, and the joint venture in
Morocco, which is engaged in the manufacture of phosphoric acid.
During the fiscal year ended March 31, 2009, the Company acquired
a 33.80% interest in JOil Singapore Pte Ltd. (JOil).
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
April 9, 2009, Moody's Investors Service downgraded to Ba1 from
Baa3 the corporate family rating of Tata Chemicals Ltd. The
outlook on the ratings is negative.
On April 7, 2009, the TCR-AP reported that Fitch Ratings
downgraded Tata Chemicals Limited's Long-term foreign currency
Issuer Default Rating to 'BB+' from 'BBB-' (BBB minus) and its
National Long-Term rating to 'AA(ind)' from 'AA+(ind)', following
the resolution of the Rating Watch Negative classification, which
was assigned on December 16, 2008. The Outlook is Negative.
Simultaneously, TCL's INR16 billion bank facilities have been
downgraded to 'AA(ind)'/'F1+(ind)' from 'AA+(ind)/F1+(ind)', while
its INR2 billion commercial paper programme has been affirmed at
'F1+(ind)'. The CP programme forms part of TCL's fund-based
working capital lines.
UNIVERSAL IMPORT: CRISIL Rates INR35 Mln Packing Credit at 'P4'
---------------------------------------------------------------
CRISIL has assigned its rating of 'P4' to the bank facilities of
Universal Import Export.
Facilities Ratings
---------- -------
INR35.0 Million Packing Credit P4 (Assigned)
INR80.0 Million Bill Purchase- P4 (Assigned)
Discounting Facility
The rating reflects Universal's weak financial risk profile, and
exposure to risks relating to customer concentration in its
revenue profile. These weaknesses are, however, partially offset
by the benefits that Universal derives from its flexible business
model.
About Universal Import
Universal was set up in 1972 as a proprietorship firm by
Mr. Narayan Pagarani. The firm is engaged in the trading of
cotton and polyester fabric. It also trades in steel utensils,
diesel engines, spices, grinding stones, and readymade garments.
Universal reported a profit after tax (PAT) of INR 3.6 million on
net sales of INR 192.1 million for the year ended March 31, 2008,
as against a PAT of INR 3.6 million on net sales of INR183.3
million for the year ended March 31, 2007.
=================
I N D O N E S I A
=================
PT CILIANDRA: Fitch Affirms 'BB-' Issuer Default Ratings
--------------------------------------------------------
Fitch Ratings has affirmed Indonesia-based palm oil plantation
company P.T. Ciliandra Perkasa's Long-term foreign and local
currency Issuer Default Ratings of 'BB-' and its National Long-
term rating of 'A+(idn)' following the proposed issuance of a
US$100 million convertible bond by its parent company, Singapore-
listed First Resources Limited. The Outlook on the ratings
remains Stable. Fitch has also affirmed the 'BB-' senior
unsecured rating of Ciliandra Perkasa Finance Company Pte Ltd's
US$140.2 million notes due in 2011, which is guaranteed by
Ciliandra and its subsidiaries.
Fitch has affirmed Ciliandra's ratings as it believes that the
issuance of the CB will not materially change FRL's and
Ciliandra's credit profiles, which are linked due to FRL's 95.5%
ownership and control of Ciliandra.
FRL will use the CB proceeds to develop plantations in West
Kalimantan that are not owned by Ciliandra. FRL's current capex
guidance of up to US$25 million per year (excluding capex of
Ciliandra and its subsidiaries) over the medium term is unchanged
from its earlier indications. Therefore, while FRL's gross debt
will increase following the issuance of the CB, its net leverage
will remain low as the proceeds will be used over several years.
Fitch believes that FRL's net leverage (measured by adjusted debt
net of cash to EBITDAR) can be sustained below 2.5x.
Fitch also notes that FRL's CB will not deteriorate the position
of Ciliandra's existing bondholders. None of FRL's subsidiaries
will guarantee the CB until Ciliandra's US$140 million notes
mature in 2011. The maturity of Ciliandra's US$ notes also
predates the earliest put option available to the CB holders,
which is in 2012. In addition, the CB provides FRL an additional
funding source that reduces its reliance on distributions from
Ciliandra for its capex needs.
=========
J A P A N
=========
FUJITSU LIMITED: To Cut Up to 1,200 Jobs in the U.K.
----------------------------------------------------
Fujitsu Limited proposed a rationalization program across its
workforce in the UK, with a reduction of up to 1,200 jobs due to
lower than anticipated revenues.
Fujitsu, which currently employs 12,500 staff in the UK, said that
the action is necessary to ensure that the company remains
competitive in the current difficult global economic climate and
is in a solid position for future growth when the economy starts
to recover.
To date, the company said it has taken a number of prudent
measures to keep its cost base down and avoid job losses,
including a company wide pay freeze, a reduction in the number of
contractors and temporary workers, a re-training program and tight
control of recruitment. In addition, strict controls have been
applied to operational and capital expenditure.
The proposed reductions are expected to be complete by the end of
2009. All affected employees will be offered guidance and
support. A process of consultation with elected employee
representatives is being established.
About Fujitsu Limited
Fujitsu Limited -- http://jp.fujitsu.com/-- is a Japan-based
company engaged in the information technology (IT) business. The
Company has three business segments. The Technology Solution
segment manufactures and sells products such as main frame
servers, UNIX servers, storage systems, various types of software,
network management systems and optical transport systems, as well
as the provision of system integrations services, network services
and system support services. The Ubiquitous Product Solution
segment offers products such as personal computers, mobile phones,
compact hard disk drives (HDDs), as well as optical transmitter
and receiver modules. The Device Solution segment manufactures
and sells large scale integrations (LSIs), semiconductor packages,
relays and connectors, among others.
* * *
As of August 27, 2009, Fujitsu Limited continues to carry these
low ratings from Mikuni Credit Rating:
-- "BB" Mortgage Debt
-- "BB" Senior Debt
MITSUKOSHI LTD: Aims to Cut 20% Workforce Early Next Month
----------------------------------------------------------
Mitsukoshi Ltd aims to cut 1,000 jobs, or about 20% of its
workforce, by boosting its voluntary retirement program, Reuters
reports citing the Nikkei business daily.
Reuters notes the paper said the company's Isetan Mitsukoshi
Holdings Ltd unit, which is Japan's largest department store
chain, will pitch the move to workers early next month and start
soliciting retirees. Workers are likely to leave this fiscal
year, Reuters relates.
Mitsukoshi Ltd. was established through the merger of Mitsukoshi
Ltd., Nagoya Mitsukoshi, Chiba Mitsukoshi, Kagoshima Mitsukoshi,
and Fukuoka Mitsukoshi. The company operates department stores
throughout Japan, selling clothing, food, household goods,
cosmetics, and general merchandise.
* * *
As of August 27, 2009, Mitsukoshi Ltd. continues to carry these
low ratings from Mikuni Credit Rating:
-- "B" Mortgage Debt
-- "B" Senior Debt
TAKEFUJI CORPORATION: Moody's Cuts Senior Debt Rating to 'Ba1'
--------------------------------------------------------------
Moody's Investors Service has downgraded the long-term senior
unsecured debt rating and issuer rating of Takefuji Corporation to
Ba1 from Baa3. The rating outlook is negative.
This rating action concludes the review for possible downgrade
initiated on May 28, 2009, due to Moody's increased concerns that
Takefuji's atypical funding profile could pose a challenge to
management's plan to stabilize operating results against the
backdrop of a severe operating environment and consistently high
overpaid-interest claims under the current severe environment.
The rating downgrade reflects Moody's rising concern that the
company's liquidity profile has weakened due to increase of
potential liquidity risk under the current severe operating
environment.
Moody's is of the view that inflation of such risk is limited as
Takefuji's short-term contract-based payment obligations are not
so large. The company can still flexibly adjust, to some extent,
its new underwriting strategy in response to emerging liquidity
pressures. Such flexibility is underpinned in turn by its
recently increased reserves against consistently high overpaid-
interest claims.
However, Takefuji's atypical funding profile is increasingly
eroding its liquidity profile. Its funding profile has been
characterized by 1) the absence of a main bank, 2) rather spread-
out relationships with small domestic financial institutions with
marginal exposures, and 3) credit facilities with covenants
(effectively, secured debt), an investment alternative for which
lenders now have substantially reduced appetite. Such an atypical
funding profile has eroded its liquidity flexibility under the
current severe environment and has contributed to increase of the
potential liquidity risk.
Moody's retains its negative ratings outlook, based upon Moody's
concern that there exist uncertain factors regarding operating
stabilization over the medium-term, given that the number of
overpaid-interest claims remains high. The negative outlook also
incorporates Moody's view on the company's constraints to funding/
liquidity flexibility.
Given the need for close monitoring the actual changes on debt
relief for borrowers, the prospect of upward rating pressure is
limited.
Downward pressure, on the other hand, would include: 1) the
emergence of liquidity stress which exceeds Moody's assume -- this
would further reduce its operating flexibility, thereby indicating
an impairment of its franchise; and 2) actual losses (payments of
annual overpaid interest claims plus loan principal write-offs,
including loan amount caps, LAC) higher than Moody's assumed risk
amounts.
The ratings outlook may revert to stable if Takefuji can 1)
demonstrate that it is smoothly achieving operating stabilization
and 2) redress its funding profile and reduce potential liquidity
risks.
Moody's last rating action with respect to Takefuji was taken on
May 28, 2009, when its long-term senior unsecured debt and issuer
ratings were downgraded to Baa3 from Baa2 and placed further
review for possible downgrade.
Takefuji's rating was assigned by evaluating factors Moody's
believes are relevant to its credit profile, such as franchise
value, risk positioning, the operating and regulatory environment,
and financial fundamentals in comparison with its competitors, as
well as the company's projected performance for the near to medium
term. These attributes were compared to those of other issuers
both inside and outside its core industry. Thus, Moody's believes
Takefuji's rating to be comparable to those of other issuers with
similar credit risk.
Takefuji Corporation, headquartered in Tokyo, was established in
1974. It is a major specialized consumer finance company in
Japan, with about JPY 0.9 trillion in total consolidated assets as
of June 30, 2009.
===============
M A L A Y S I A
===============
HO HUP: Posts MYR3.70 Mil. Net Loss in Quarter Ended June 30
------------------------------------------------------------
Ho Hup Construction Company Bhd incurred MYR3.70 million net loss
on MYR17.84 million of revenues in the quarter ended June 30,
2009, compared with a net loss of MYR9.26 million on MYR20.01
million of revenues in the same quarter in 2008.
As of June 30, 2009, the company had MYR280.30 in total assets,
MYR269.99 million in total liabilities and MYR10.31 in total
shareholders' equity.
The company's balance sheet as of June 30, 2009, also showed
strained liquidity with MYR129.06 million in total current assets
available to pay MYR269.95 in total current liabilities.
Ho Hup Construction Company Berhad is engaged in foundation
engineering, civil engineering, building contracting works and
hire of plant and machinery. The Company operates in four
segments: construction, which is engaged in foundation and civil
engineering, building contracting works and engineering,
procurement, construction and commissioning of pipeline system;
property development, which includes the development of
residential and commercial properties, manufacturing, which
includes manufacturing and distribution of ready-mixed concrete,
and other business segment, which represents hire of plant and
machinery. The Company's subsidiaries include H2Energy
Corporation Sdn Bhd, Tru-Mix Concrete Sdn Bhd, Bukit Jalil
Development Sdn Bhd and Ho Hup Equipment Rental Sdn Bhd.
* * *
Ernst & Young expressed a disclaimer opinion in the Company's 2007
audited financial statements. As a result, the Company became an
affected listed issuer pursuant to paragraph 2.1 of the PN17/2005.
The auditors cited factors that indicate the existence of material
uncertainties, which may cast significant doubt on the ability of
the group and the company to continue as a going concern.
MECHMAR CORP: Reports MYR196,000 Net Income in Qtr Ended June 30
----------------------------------------------------------------
Mechmar Corporation (Malaysia) Berhad disclosed a net income of
MYR196,000 on MYR16.59 of revenues during the quarter ended
June 30, 2009. It had a net loss of MYR5.72 million on MYR39.37
million of revenues during the quarter ended June 30, 2008.
As of June 30, 2009, the Company had MYR262.26 million in total
assets, MYR144.23 million in total liabilities and MYR118.03
million in total shareholders' equity.
The Company's balance sheet as of June 30, 2009, also showed
strained liquidity with MYR55.95 million in total current assets
available to pay MYR142.70 million.
Mechmar Corporation (Malaysia) Berhad is an investment holding
company providing management services to its subsidiaries.
Through its subsidiaries, the company is engaged in the
manufacture and marketing of industrial boilers, burners, steam
generating plant, vessels, fabrication and associated product
support activities; operating of a power generation plant;
retailing of solar-heaters, and retailing and leasing of ice
machines, and investment holding. Its manufacturing and trading
activities are located in Malaysia, Great Britain, Hong Kong,
Indonesia, Sri Lanka and Singapore. Its power generation activity
is based in Tanzania, whereas its property development and
financing activities are located in Malaysia. In April 2008, the
company announced that Mekmore Sdn Bhd has a 100% interest in the
company.
Mechmar Corporation has been considered as an Affected Listed
Issuer under Practice Note No. 17/2005 of the Bursa Malaysia
Securities Berhad as:
-- the Company's major subsidiary, Independent Power of
Tanzania (IPTL) has stop payment on its scheduled
instalment to its lender; and
-- the Company was unable to provide a solvency declaration.
OCI BERHAD: Posts MYR295,000 Net Loss for Qtr. Ended June 30
------------------------------------------------------------
OCI Berhad disclosed its unaudited financial results for the
fourth quarter ended June 30, 2009.
OCI Berhad posted a net loss of MYR295,000 on MYR2.15 million of
revenues for the quarter ended June 30, 2009, compared with a net
loss of MYR2.42 million on MYR1.79 million of revenues in the same
period in 2008.
The company's balance sheet as of June 30, 2009, showed MYR26.08
million in total assets and MYR67.18 million in total liabilities,
resulting in a MYR41.07 million shareholders' deficit.
As of June 30, 2009, the company's balance sheet also showed
strained liquidity with MYR4.21 million in total current assets
available to pay MYR67.15 million in total current liabilities.
About OCI Berhad
OCI Berhad is a Malaysia-based company principally engaged in the
manufacturing and trading of chemical products. The Company
operates through its subsidiaries, which include Witaco
Corporation Sdn. Bhd., Bosschem Sdn. Bhd., Orgavyl Packaging
Industries Sdn. Bhd., OCI Plastic & Packaging Sdn. Bhd. and OCI
Total Logistics (M) Sdn. Bhd. The Company also owns a 70%
interest in OCI USA Inc.
* * *
OCI Berhad is an affected listed issuer as Ernst & Young
expressed substantial doubt regarding the company's ability to
continue as a going concern after having audited the company's
financial statements for the year ended June 30, 2007. The
auditor points to the company's losses and, together with its
subsidiaries, the default on the repayment of various financial
obligations.
====================
N E W Z E A L A N D
====================
AIR NEW ZEALAND: Resolves Pay Dispute with Zeal 320 Cabin Crews
---------------------------------------------------------------
Air New Zealand subsidiary Zeal 320 said it has reached agreement
with cabin crew following months of negotiations, a report posted
at stuff.co.nz says.
Citing Zeal 320 in a statement issued on Wednesday, the report
says the Engineering, Printing and Manufacturing Union (EPMU),
which represents most flight attendants who operate on the
airline's Tasman and Pacific routes, had agreed to a new
collective employment agreement.
The report relates that the agreement was being presented to the
staff for ratification and Zeal 320 said it would not comment
until that process was completed.
About Air New Zealand
Based in Auckland, New Zealand, Air New Zealand Ltd --
http://www.airnewzealand.com/--is the country's flag air carrier,
with domestic and international passenger and freight operations,
and an aviation engineering business. Air New Zealand flies to
the United States, United Kingdom, Canada, Europe and other Asian
cities.
* * *
As of August 21, 2009, Air New Zealand Ltd continues to carry
Moody's Investors Service "Ba1" Senior Unsecured Issuer rating
with stable outlook.
BLUE STAR: Suspends Cash Interest Payments on Capital Bonds
-----------------------------------------------------------
The National Business Review reports that Blue Star Print Group
Ltd is suspending cash interest payments on capital bonds until
its parent is in compliance with the banking covenants.
According to the report, Blue Star said its parent, Sirius NZ
Holdco Ltd, had reached an agreement with its senior lenders to
reset the company's banking covenants, amortization and related
pricing structure. This agreement, the report relates, would
enable Blue Star to continue a restructuring of its business.
The report discloses that Blue Star is required to suspend cash
interest payments on the bonds until interest can be paid in
compliance with bank covenants as part of the banking agreements.
The company will resume payments as soon as permissible under the
senior funding arrangements, including payment of the compounded
interest, NBR notes. According to NBR, interest due to bond
holders will compound, increasing payments to 13.1% per annum from
the current coupon of 9.1%.
The company said the new financial arrangements have the full
support of major equity holders, senior lenders and management and
will enable the Blue Star to grow the print management, webstar
and direct mail business units, while continuing to transform the
general print businesses.
The Troubled Company Reporter-Asia Pacific reported on Feb. 25,
2009, that Blue Star warned investors that it may have to suspend
interest payments on its capital bonds after the company disclosed
its parent was in danger of breaching debt covenants.
Blue Star is the guarantor of a senior lending facility for
Sirius. If Sirius breaches its financial covenants, Blue Star may
become subject to a restriction under the bank facility agreement
which prevents Blue Star from paying interest on the capital
bonds.
The bonds were issued to 3,700 New Zealand investors in 2005 with
an initial interest rate of 9.1% and are due to mature in 2012.
About Blue Star
Headquartered in Auckland, New Zealand, Blue Star Print Group
Limited provides commercial printing and complete outsourced print
management solutions for large corporates in Australia and
New Zealand. The employs approximately 1,200 staff within three
divisions and a labels business.
===============
P A K I S T A N
===============
PAKISTAN MOBILE: S&P Raises Corporate Credit Rating to 'B-'
-----------------------------------------------------------
Standard & Poor's Ratings Services said it raised its long-term
corporate credit rating on Pakistan-based wireless service
provider Pakistan Mobile Communications Ltd. to 'B-' from 'CCC+'.
The outlook is stable. At the same time, S&P raised its issue
rating on the company's US$112.2 million senior unsecured notes
due 2013 to 'B-' from 'CCC+'.
"We raised the rating on Mobilink to reflect S&P's opinion of the
improvement in its funding profile and Pakistan's macroeconomic
situation," said Standard & Poor's credit analyst Yasmin Wirjawan.
This follows Standard & Poor's decision to raise the long-term
sovereign credit ratings on Pakistan (B-/Stable/C).
The rating on Mobilink also reflects S&P's view of domestic
political uncertainties and security risks, weak cash flow
protection measures, and highly intense domestic industry
competition. These risks are partly offset by strategic benefits
from its parent, Orascom Telecom Holdings S.A.E. (B/Stable/--),
and Mobilink's leading but weakened market position in the
country.
In S&P's view, Mobilink continues to remain exposed to the weak
macroeconomic environment, external liquidity position and
security situation in Pakistan. However, S&P expects the recent
improvement in macroeconomic environment to result in better
operating performance. Also, in the near term, S&P expects
Mobilink to face less funding challenges as it is expected to
register positive free operating cash flows through significant
reduction in capital expenditure and suspension of management fees
to Orascom Telecom.
Pakistan's cellular market continues to face intense competition,
resulting in lower subscriber numbers and market share for
Mobilink. Nevertheless, Mobilink has maintained its No. 1 market
share both in terms of subscribers and revenue in Pakistan's
wireless market.
S&P believes parent Orascom Telecom would continue to provide
support to Mobilink, if required, considering: (1) the cross-
default clause at the parent company in the event of a covenant
breach of material subsidiaries, including Mobilink; and (2)
Mobilink is the second-largest operation of Orascom Telecom
by most financial measures and accounted for 20.6% of the
consolidated EBITDA for 2008.
The stable outlook reflects the expected improvement in Mobilink's
financial risk profile, compliance with financial covenants, and
continued support from parent Orascom Telecom, said Ms. Wirjawan.
It also factors in the improvement in Pakistan's macroeconomic
situation, which will have a positive impact on Mobilink.
=====================
P H I L I P P I N E S
=====================
BENPRES HOLDINGS: Buys Back US$169 Million Debt from Avenue Asia
----------------------------------------------------------------
Benpres Holdings Corporation gained headway in its debt
restructuring effort with the settlement of its debt to its
biggest creditor, Avenue Asia Group, ABS-CBN News reports.
Citing Benpres in a disclosure to the Philippine Stock Exchange,
ABS-CBN says Benpres paid US$169 million for the buyback of US$260
million in principal debt, representing a 35% discount on the face
value.
According to the report, Benpres president and chief operating
officer Angel S. Ong said the buyback removes much of the
uncertainty that has shadowed Benpres and its associated companies
for the last several years.
"The debt restructuring exercise has previously affected the
ability of our subsidiaries to raise funding for their own growth
strategies. With our debt remaining at a manageable level of
US$70 million, we can all look forward to operating under normal
conditions," Mr. Ong was quoted by the report as saying.
ABS-CBN News states that the settlement with Avenue Asia was
funded from the sale of the company's interests in First
Philippine Infrastructure, Inc. (toll roads), Rockwell Land
Corporation (property development) and shares of Digital
Telecommunications Philippines, Inc.
"The remaining creditors have the option to either sell debt back
to the company, subject to discount and funds availability, or
sign a new loan agreement for a bullet payment after 12.5 years.
This has been a standing offer since December 2008, and a number
of creditors have in fact already signed up and availed of the
plan," Mr. Ong said.
Debt Restructuring
Starting in 2002, Benpres Holdings defaulted on its principal and
interest payments on its long-term direct obligations and its
guarantees and commitments to Bayantel Telecommunications Holdings
Corporation (Bayantel), an associate.
Long-term direct obligations of Benpres Holdings that are due for
payment as of December 31, 2008 and 2007 amounted to Php8.64
billion and PHP8.18 billion, respectively. In addition, by virtue
of its guarantees and commitments to Bayantel (or indirect
obligations), Benpres Holdings may be liable for certain
obligations that already fell due amounting to approximately
US$145 million and US$167 million as of December 31,
2008 and 2007, respectively, with equivalent Philippine Peso
amounts of PHP6.9 billion and PHP7.10 billion, respectively.
As of December 31, 2008 and 2007, the consolidated current
liabilities also exceeded consolidated current assets by PHP11.86
billion and PHP15.39 billion, respectively.
The BSMP was created by Benpres Holdings in June 2002 to address
all its outstanding financial obligations, including its
guarantees and commitments to Bayantel. The BSMP involves series
of activities, including restructuring of debt and disposal of
non-core assets, with the aim of reducing the outstanding
financial obligations of the company.
In the BSMP, all the outstanding financial obligations of the
Benpres Holdings as of May 31, 2002, were proposed to be
restructured and since December 2002, Benpres Holdings has been
making good faith semi-annual interest payments on its financial
obligations. Interest is computed based on the proposed
restructuring terms, while interest paid on indirect
obligations are treated as advance payment of principal based on
the original contracted terms.
On December 19, 2008, Benpres Holdings circulated to its creditors
a Term Sheet containing Primary Financial and Commercial Terms and
Obligations for the restructuring of Benpres financial
obligations.
About Benpres Holdings
Headquartered in Pasig City, Philippines, Benpres Holdings
Corporation (PSE:BPC) -- http://www.benpres-holdings.com/-- is an
investment holding company. Benpres is a 54.61%-owned subsidiary
of Lopez, Inc. Both entities were incorporated in the
Philippines. Benpres Holdings and its subsidiaries are mainly
involved in investment holdings, broadcasting and entertainment,
and water distribution. The company's associates are involved in
telecommunications, power generation and distribution, cable
television, real estate development and infrastructure.
* * *
Sycip Gorres Velayo & Co. commented on the company's financial
results for the year ended December 31, 2008, that the ability
of the company to continue operating as a going concern depends
on the success of its Balance Sheet Management Plan and related
Term Sheet circulated to its creditors. This condition indicates
the existence of a material uncertainty, which may cast
significant doubt about the company's ability to continue
operating as a going concern.
As of December 31, 2008, the company recorded total assets of
PHP55.67 billion while total stockholders' equity at year-end
stood at PHP16.62 billion.
===============
X X X X X X X X
===============
* S&P Downgrades Ratings on 39 Asia-Pacific Synthetic CDOs
----------------------------------------------------------
Standard & Poor's Ratings Services said that is has lowered its
ratings on 39 Asia-Pacific (excluding Japan) synthetic
collateralized debt obligations, 13 of which remain on CreditWatch
with negative implications.
The downgrades, listed in the table below, reflect the increased
credit risk of underlying portfolios in the respective
transactions. The synthetic rated overcollateralization levels
for tranches that have been downgraded fell below 100% at their
current rating levels during the SROC analysis for the month of
August. This indicates that the available credit enhancement for
each of the tranches is lower than the level required to
maintain the current rating.
Where the SROC is less than 100%, scenarios that project the
current portfolio 90 days into the future are run, assuming no
asset rating migration. Where this projection indicates that the
SROC would return to a level above 100%, the rating is maintained,
but placed on CreditWatch negative. If the projection indicates
that the SROC would remain below 100%, the rating is immediately
lowered.
For those transactions that have been on CreditWatch negative for
longer than 90 days, where S&P has either not received material
levels of information or relative credit quality has not improved
since the CreditWatch placement to a level sufficient to affirm
the rating, S&P has assessed portfolio credit quality and not run
scenarios 90 days into the future.
If the rating on the tranche is lowered to 'CCC-' and the SROC at
'CCC-' continues to be less than 100%, the rating is not placed on
CreditWatch with negative implications if S&P's assessment of
aggregate loss is lower than the available subordination in the
respective portfolios. The SROC being lower than 100% reflects
the implicit negative bias within the 'CCC-' rating.
ARLO Ltd. Series 2005 (SKL CDO - Series 6)
To From SROC at revised rating
-- ---- ----------------------
BB+pNRi BBB+pNRi/Watch Neg 100.1717%
Castle Finance I Ltd. Series 2
To From SROC at revised rating
-- ---- ----------------------
B-/Watch Neg BB/Watch Neg 99.9247%
Chess II Ltd. Series 2004-7
To From SROC at revised rating
-- ---- ----------------------
BBB+/Watch Neg AA-/Watch Neg 99.8081%
Chess II Ltd. Series 2004-8
To From SROC at revised rating
-- ---- ----------------------
BB+/Watch Neg BBB-/Watch Neg 99.7787%
Corsair (Jersey) No. 2 Ltd. Series 68
To From SROC at revised rating
-- ---- ----------------------
CCC- B+/Watch Neg 100.5714%
Sceptre Capital B.V. Series 2005-3
To From SROC at revised rating
-- ---- ----------------------
BBB-/Watch Neg BBB+/Watch Neg 72.3995%
United Investment Grade ABS/CDO Fund 2005-01 A
To From SROC at revised rating
-- ---- ----------------------
B/Watch Neg BBB-/Watch Neg 99.3305%
Zenesis SPC Series 2005-4
To From SROC at revised rating
-- ---- ----------------------
AA/Watch Neg AAA/Watch Neg 99.5032%
Aphex Pacific Capital Ltd. Series 5 DESIGN 2006
To From SROC at revised rating
-- ---- ----------------------
CCC CCC+/Watch Neg 100.0029%
Athenee CDO PLC Series 2007-3
To From SROC at revised rating
-- ---- ----------------------
BBB- BBB/Watch Neg 100.4163%
Athenee CDO PLC Series 2007-4
To From SROC at revised rating
-- ---- ----------------------
BB BB+/Watch Neg 100.1197%
Athenee CDO PLC Series 2007-5
To From SROC at revised rating
-- ---- ----------------------
BB+/Watch Neg BBB-/Watch Neg 99.9624%
Athenee CDO PLC Series 2007-6
To From SROC at revised rating
-- ---- ----------------------
BB BB+/Watch Neg 100.1197%
Athenee CDO PLC Series 2007-7
To From SROC at revised rating
-- ---- ----------------------
BB BB+/Watch Neg 100.1197%
Athenee CDO PLC Series 2007-8
To From SROC at revised rating
-- ---- ----------------------
BBB- BBB/Watch Neg 100.4163%
Athenee CDO PLC Series 2007-11
To From SROC at revised rating
-- ---- ----------------------
BBB- BBB/Watch Neg 100.3374%
Athenee CDO PLC Series 2007-14
To From SROC at revised rating
-- ---- ----------------------
BB BB+/Watch Neg 100.1200%
Castle Finance I Ltd. Series 1
To From SROC at revised rating
-- ---- ----------------------
CCC+ B+/Watch Neg 100.6124%
Dragon A (CDS BNP)
To From SROC at revised rating
-- ---- ----------------------
BB+srp/Watch Neg BBB-srp/Watch Neg 99.5797%
Dragon AA (CDS BNP)
To From SROC at revised rating
-- ---- ----------------------
BBB+srp/Watch Neg A-srp/Watch Neg 99.7704%
Eirles Two Ltd. Series 241
To From SROC at revised rating
-- ---- ----------------------
CCC- CCC/Watch Neg 100.2024%
Morgan Stanley ACES SPC Series 2006-31
To From SROC at revised rating
-- ---- ----------------------
CCC- CCC+/Watch Neg 100.3935%
Morgan Stanley Managed ACES SPC Series 2006-7 Class IA
To From SROC at revised rating
-- ---- ----------------------
CCC- CCC/Watch Neg 99.6776%
Morgan Stanley ACES SPC 2007-21 Class I
To From SROC at revised rating
-- ---- ----------------------
CCC- CCC+/Watch Neg 100.7463%
Morgan Stanley ACES SPC 2007-29
To From SROC at revised rating
-- ---- ----------------------
B- B+/Watch Neg 100.2514%
Morgan Stanley ACES SPC 2007-38 Class I
To From SROC at revised rating
-- ---- ----------------------
B- BB-/Watch Neg 100.1554%
Sceptre Capital B.V. Series 2007-2
To From SROC at revised rating
-- ---- ----------------------
CCC- CCC/Watch Neg 101.3600%
Xelo PLC Series 2006 (Spinnaker III Asia Mezz) Tranche A
To From SROC at revised rating
-- ---- ----------------------
CCC CCC+/Watch Neg 100.3204%
XELO PLC Series 2006 (Spinnaker III Asia Mezz) Tranche B
To From SROC at revised rating
-- ---- ----------------------
CCC- CCC/Watch Neg 99.4085%
XELO PLC Series 2007 (Spinnaker III Asia Mezzanine 3)
To From SROC at revised rating
-- ---- ----------------------
CCC- CCC/Watch Neg 99.9354%
Zenesis SPC Series 2006-5
To From SROC at revised rating
-- ---- ----------------------
CCC+ BB+/Watch Neg 100.2645%
Jacaranda Trust Series 1
To From SROC at revised rating
-- ---- ----------------------
AA+/Watch Neg AAA/Watch Neg 99.5841%
Jacaranda Trust Series 2
To From SROC at revised rating
-- ---- ----------------------
A/Watch Neg AA-/Watch Neg 99.5828%
Obelisk Trust 2005-1
To From SROC at revised rating
-- ---- ----------------------
BB/Watch Neg BB+/Watch Neg 97.1821%
Obelisk Trust 2005-3 - Mica
To From SROC at revised rating
-- ---- ----------------------
BB/Watch Neg BB+/Watch Neg 99.6212%
SELECT ACCESS Investments Ltd. Series 2005-2
To From SROC at revised rating
-- ---- ----------------------
CCC- B-/Watch Neg 100.1795%
Alpha Financial Products Ltd. Series 1
To From SROC at revised rating
-- ---- ----------------------
CCCpNRi B+pNRi/Watch Neg 100.0427%
Echo Funding Pty Ltd. Series 21
To From SROC at revised rating
-- ---- ----------------------
CCC- CCC/Watch Neg 100.2530%
SELECT ACCESS New Zealand Series 2004-3
To From SROC at revised rating
-- ---- ----------------------
BBB- BBB+/Watch Neg 100.0734%
*********
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. Valerie C. Udtuhan, Marites O. Claro,
Rousel Elaine C. Tumanda, Joy A. Agravante, 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 ***