/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090922.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, September 22, 2009, Vol. 12, No. 187 Headlines A U S T R A L I A APN NEWS: Share Dilution May Cause Chairman to Step Down ATOS WELLNESS: Placed Under Voluntary Liquidation AUSTRALIAN MUTUAL: S&P Puts Note Ratings on CreditWatch Negative BABCOCK & BROWN: Creditors Give AU$300,000 to Fund D&O Lawsuit PACIFIC BLUE: ASIC Obtains Freezing Order in Federal Court RG MUNRO: ASIC Executes Search Warrants to Support Liquidators TIMBERCORP LTD: Gunns Submits Conditional Bid for Forestry Assets TIMBERCORP LTD: Investors Oppose Sale of Almond Assets to Olam C H I N A CHINA POWER: Fitch Downgrades Issuer Default Ratings to 'BB' PROTOSTAR LTD: Agrees to Return Erroneous Wire Transfer PROTOSTAR LTD: PLDT Looking for US$27.5MM Deposit, Wants Probe H O N G K O N G AMP HOLDINGS: Court to Hear Wind-Up Petition on October 28 APEX MIGHT: Creditors and Contributories to Meet on September 25 CANTON PROPERTY: Court to Hear Wind-Up Petition on October 21 CITIGROUP INC: Names Tsang as Co-Head of China Investment Banking EMPIRE TOYS: Pays First Dividend EXECUTIVE RESOURCES: Court to Hear Wind-Up Petition on October 21 FULL CREATION: Court Enters Wind-Up Order GALLERIA (HONG KONG): Court to Hear Wind-Up Petition on Sept. 30 GOLDEN CHOICE: Court to Hear Wind-Up Petition on October 21 NOBLE GROUP: China Investment Buys US$850-Mln Stake in Firm NOBLE GROUP: S&P Raises Corporate Credit Rating From 'BB+' NON-NO FASHION: Appoints Wai Dune Charles as Liquidator REGENT SUMMIT: Court to Hear Wind-Up Petition on October 21 SKYLINK GROUP: Court to Hear Wind-Up Petition on October 21 THREE STARS: Creditors and Contributories to Meet on September 25 VICTORIOUS RUN: Court to Hear Wind-Up Petition on October 7 WYNN RESORTS: To Raise Up to HK$12.6 Bil. in a HongKong IPO WING WO: Court Enters Wind-Up Order WISE ELITE: Contributories and Creditors Hold Meeting * HONGKONG: Bankruptcy Filings Up 33% Yoy to 1,099 in August I N D I A AXIS BANK: Raises US$720 Million in Share Sale to Investors HALDYN GLASS: CRISIL Lifts Ratings on Various Bank Loans to 'BB' JET AIRWAYS: Incurs $80 Million Loss From Pilots' Five-day Strike PMC PROJECTS: CARE Rates INR52.50cr Long-term Loans at 'CARE BB' RINDIAM EXPORT: CARE Assigns 'CARE BB' Rating on INR19.20cr Loan RS CONCAST: CRISIL Assigns 'BB-/Stable/P4+' to Bank Debts SANJAY CHEMICALS: CARE Puts 'CARE BB+' Rating on INR0.35cr LT Loan TANIA INDUSTRIES: Low Net Worth Prompts CRISIL 'BB' Ratings V3 ENGINEERS: Default in Debt Repayment Cues CRISIL 'D' Ratings I N D O N E S I A AGRI INTERNATIONAL: Liquidity Concerns Cue S&P to Junk Rating GARUDA INDONESIA: Gov't to Pay Part of IDR3.36TT Debt to Mandiri PT BAKRIE: S&P Downgrades Corporate Credit Rating to 'B-' * INDONESIA: IDR1-Tril. Needed to Restructure 10 Firms in 2010 J A P A N AIFUL CORPORATION: JCR Downgrades Ratings on Senior Debts to "CCC" AIFUL CORPORATION: Moody's Downgrades Senior Debt Rating to 'B3' AIFUL CORP: S&P Downgrades Counterparty Credit Rating to 'CC' CSC SERIES: S&P Retains CreditWatch Negative on Various Bonds JAPAN AIRLINES: May Receive More Aids from Japanese Government JAPAN AIRLINES: Hires Merrill Lynch as Adviser JAPAN AIRLINES: S&P Puts 'B+' Rating on CreditWatch Negative JAPAN AIRLINES: Transport Minister to Hear Recovery Plan This Week JLOC 41: S&P Keeps CreditWatch Negative on Various Note Ratings JLOC XXXIII: S&P Downgrades Ratings on Various Classes of Notes MLOX4 CERTIFICATES: S&P Downgrades Ratings on Various Classes SANYO ELECTRIC: Goldman to Sell US$1.4BB Stake to Panasonic * S&P Puts Ratings on 60 Corporate CDOs on CreditWatch Negative N E W Z E A L A N D BLUE CHIP: Court Orders Financial Advisor to Pay Widow NZ$250,000 * NEW ZEALAND: Current Account Deficit Shrinks to NZ$612MM in June P H I L I P P I N E S POWER SECTOR: Moody's Assigns 'Ba3' Corporate Family Rating S I N G A P O R E ENG CHEONG: Contributories to Hold Meeting on September 30 ENRON INTERNATIONAL: Creditors' Proofs of Debt Due on October 2 GRANDSAGE PTE: Creditors' Proofs of Debt Due on October 30 K SOLUTIONS: Court Enters Wind-Up Order PETRORIG: To Auction Oil Rig Contract September 25 UNIVERSAL RELIANCE: Court to Hear Wind-Up Petition on Sept. 25 X X X X X X X X * BOND PRICING: For the Week September 14 to September 18, 2009 - - - - - ================= A U S T R A L I A ================= APN NEWS: Share Dilution May Cause Chairman to Step Down -------------------------------------------------------- APN News & Media Ltd. Chairman Gavin O'Reilly may have to step down if a proposed refinancing plan is implemented that would cut his family's stake in Independent News & Media Plc, APN's largest shareholder, Bloomberg News reports citing the Australian Financial Review. According to the report, the newspaper said Independent News, which owns 32% of APN, has been talking to banks and bondholders for four months about ways to reduce its EUR1.38 billion (US$2 billion) of debt and repay a EUR200 million bond that was due in May. The Review, as cited by Bloomberg, said the latest plans include a rights offer that would cut the stake in Independent News held by former chief executive officer Anthony O'Reilly and his family to 15% or less, from 28%. For the year ended December 31, 2008, APN News reported a net loss of AU$23.97 million, compared with a net profit of AU$167.43 million in the prior year. As at December 31, 2008, the company had total assets of AU$2.32 billion, total liabilities of AU$1.27 billion and total stockholders' equity of AU$1.04 billion. APN News' balance sheet as of December 31, 2008, showed strained liquidity with AU$308.05 million in total current assets available to pay AU$338.81 million in total current liabilities. As at December 31, 2008, the company's accumulated losses stood at AU$76.37 million. About APN News Based in Sydney, Australia APN News & Media Ltd (ASX:APN) -- http://www.apn.com.au/-- is engaged in publishing of newspapers, magazines and directories in printed and online formats, radio broadcasting and outdoor advertising. The company's segments include Publishing, Broadcasting, and Outdoor. Publishing includes newspapers, magazines, directories, printing and online publishing. Broadcasting includes radio transmissions. Outdoor includes specialist transit and static outdoor advertising. On January 8, 2008, the company acquired the remaining 50% of Esky Limited (formerly Finda Group Limited). On March 14, 2008, it acquired the remaining 50% of Sell Me Free Limited. On Dec. 1, 2008, it acquired Northern Rivers Echo and on December 31, 2008, it acquired Northland Age. ATOS WELLNESS: Placed Under Voluntary Liquidation ------------------------------------------------- The members of Atos Sol Wellness Pty Ltd decided on August 31, 2009, to put the company into voluntary liquidation. Atol Sol has not been trading since January 1, 2009. Atos Wellness Ltd (ATW) is a 50% joint partner in Atos Sol which was formed on April 14, 2008, to establish and operate Wellness Centers throughout Australia. In a regulatory filing to the Australian Securities Exchange, Atos Sol said that the then existing ATOS Inspired Life Centre in Bentley, WA (Inspired Life) was to be the model for the new joint venture company. Atos Sol managed and operated Inspired Life from its formation date through until December 31, 2008, when the joint venture partners mutually decided to hand over management of Inspired Life to Letchworth House Pty Ltd, a wholly owned subsidiary of ATW. On July 3, 2009, ATW, in an effort to preserve and build its cash position, withdrew financial support for Letchworth House Pty Ltd and subsequently on July 4, 2009, the directors of Letchworth House decided to place the company into Administration. Atos Sol said this move allows Atos Wellness Ltd to focus on its core business in Singapore, which has 11 wellness centers, as it endeavors to improve its return to its shareholders. Based in Australia, Atos Wellness Limited (ASX:ATW) -- http://www.atoswellness.com.au/--formerly Medec Limited, is engaged in the manufacture, distribution and marketing of health care products; operation of a franchise distribution system, and operation of health care and wellness centers. The Company operates in three business segments: manufacturing and distribution division based in Germany that manufactures the Medec range of products; manufacturing and distribution division based in Victoria, Australia that manufactures the Athlegen range of products, and health and wellness division based in Singapore, that provides a range of health and beauty treatments. Its subsidiaries include Swandale Holdings Pty Ltd, Learange Holdings Pty Ltd, Medec International Pty Ltd and Medec Systems GmbH, among others. On December 21, 2007, Atos Wellness Limited sold Medec Australia Pty Ltd. AUSTRALIAN MUTUAL: S&P Puts Note Ratings on CreditWatch Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services placed the ratings on all classes of notes issued by Australian Mutual Capital Funding (No. 1) on CreditWatch with negative implications. The review of the transaction which led to the CreditWatch action was prompted by S&P's update of the criteria and assumptions applied in CDO evaluator. The rating action reflects a change in S&P's assessment of the ability of these notes to withstand stress scenarios commensurate with its rating definitions. The AU$50 million floating rate notes issued by Australian Mutual Capital Funding (No. 1) is secured by a portfolio of Lower Tier 2 instruments issued by 20 participating Australian credit unions, the credit performance of which has direct impact on the timely payment of interest and ultimate repayment of principal to noteholders. The portfolio composition and its credit quality have been relatively stable since the closing of the transaction. Standard & Poor's expects an imminent resolution of the CreditWatch negative placement. S&P expects its review could result in a minimum of a one rating category downgrade in each class of notes. Ratings Placed On Creditwatch Australian Mutual Capital Funding No. 1 Class Rating to Rating from ----- --------- ----------- Senior AAA/Watch Neg AAA Mezzanine BBB/Watch Neg BBB Junior BB/Watch Neg BB BABCOCK & BROWN: Creditors Give AU$300,000 to Fund D&O Lawsuit -------------------------------------------------------------- The creditors and noteholders of Babcock & Brown Ltd have contributed more than AU$300,000 to create a fighting fund to pursue the company's former directors and senior managers, The Age reports. The Age says the liquidators of B&B have been taken aback by the response to their call for financial support in establishing the fund, the purpose of which will be to cover the costs of a more detailed investigation into the causes of the group's failure. "In my 20 years of experience as a liquidator, I have not experienced this level of support by creditors, particularly as they are contributing money out of their own pockets after having already suffered significant financial losses," The Age quoted David Lombe of Deloitte as saying. The report notes that public examinations in court of the former directors could now start as early as November. According to the report, the list of key witnesses includes B&B's founder James Babcock, his successor as chairman Elizabeth Nosworthy, ex-chief executive Phil Green and his replacement Michael Larkin. As reported in the Troubled Company Reporter-Asia Pacific on August 19, 2009, The Australian said the administrator of Babcock & Brown Ltd has asked creditors and noteholders to tip in AU$400 each of their own money to fund public examinations and further investigations into the affairs of Babcock & Brown. The Australian said the administrator Deloitte has sent a funding proposal to creditors and noteholders asking them to consider stumping up some money to enable them to continue their investigations on Babcock & Brown after it is placed in liquidation on August 24. Such examinations would cost about AU$600,000 and would assist the liquidators of Babcock to determine how best to proceed with various recovery actions, according to The Australian. About Babcock & Brown Headquartered in Sydney, Australia, Babcock & Brown Limited (ASX:BNB) -- http://www.babcockbrown.com/-- is a global alternative asset manager specializing in the origination and management of asset in sectors, where the company has a franchise and proven track record, and where there are opportunities to add scale, infrastructure, air operating leasing and selected real estate. Babcock & Brown operates from 31 offices across Australia, North America, Europe, Asia and the United Arab Emirates. The company has established a specialized funds and asset management platform across the operating divisions that have resulted in the establishment of a number of listed and unlisted focused investment vehicles in areas, including real estate, renewable energy and infrastructure. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 13, 2009, Babcock & Brown appointed voluntary administrators after investors in the company's subordinated notes listed in New Zealand voted on March 13 against a special resolution to restructure the terms of the notes. Under the special resolution, the company's equity and subordinated note holders won't receive any return. Babcock & Brown appointed David Lombe and Simon Cathro of Deloitte Touche Tohmatsu as Voluntary Administrators. The TCR-AP reported on Aug. 25, 2009, that Babcock & Brown Ltd creditors voted to liquidate the assets of the company. Deloitte said the vote empowers it to investigate matters surrounding the collapse of the group, including potential conflicts of interest between the boards of Babcock & Brown and affiliated company Babcock & Brown International Pty. Ltd. which held most of the group's assets. PACIFIC BLUE: ASIC Obtains Freezing Order in Federal Court ---------------------------------------------------------- The Australian Securities and Investments Commission on Sept. 17, 2009, obtained ex-parte interim orders in the Federal Court of Australia restraining Pacific Blue Securities Pty Ltd and its sole director Mr. Sean Fogarty from disposing of assets and prohibiting Mr. Fogarty from leaving Australia without the consent of the Court. This is further to ex-parte interim orders obtained by ASIC on September 10, 2009. The orders follow the commencement of an ASIC investigation into Pacific Blue Securities' affairs. ASIC informed the Court that it suspects that Pacific Blue Securities is advising on and dealing in interests in financial products without holding an Australian financial services license. ASIC is also concerned about a number of claims made on the Pacific Blue Securities Web site and in literature distributed to the public. ASIC said it commenced proceedings following a number of complaints alleging that returns on investments were not honored. At this stage, ASIC believes that in excess of AU$400,000 has been invested with Pacific Blue Securities by around 40 investors. The matter returns to the Federal Court in Melbourne on October 8, 2009. ASIC's investigation is continuing. RG MUNRO: ASIC Executes Search Warrants to Support Liquidators -------------------------------------------------------------- The Australian Securities and Investments Commission has executed two search warrants to seize property, books and records of RG Munro Futures Pty Ltd and US-registered company Starport Futures Trading Corporation, both in liquidation. ASIC alleged that Roger Gareth Munro, the operator of both companies, failed to deliver all of the books and records of the two companies to the liquidators appointed, as required by law. ASIC said the action also follows an ASIC investigation into RG Munro and Starport which concerned the location of approximately $100 million of funds lent to both companies for the purpose of futures investments. ASIC said that following the liquidator's appointment to RG Munro in October 2008, ASIC received a number of complaints from both the liquidator and investors, alleging a lack of co-operation by Mr. Munro in the liquidation process. Both parties also voiced concerns about the location of approximately $88 million in investor funds. Starport was placed into liquidation in April 2009. ASIC also obtained orders from the Supreme Court on September 9, 2009, which required Mr. Munro to surrender all passports issued to him to the Court, prohibiting him from leaving Australia. TIMBERCORP LTD: Gunns Submits Conditional Bid for Forestry Assets ----------------------------------------------------------------- Gunns Limited has submitted a conditional proposal to the liquidator of Timbercorp Limited to acquire certain forestry assets from the company. The assets include land, trees and a forestry operations business "The proposal is conditional and there is no guarantee that the conditions will be satisfied nor that its proposal will form a basis for completion of a transaction," Gunns said in a statement to the Australian Securities Exchange on September 21. Gunns said it has held discussions with potential providers of debt and a joint venture partner in relation to the potential acquisition. "These discussions have not been concluded prior to the liquidator's date for offers of September 18, 2009, and as a result Gunns' proposal has a number of conditions within its control." "It is anticipated that the proposal would encompass Gunns, together with a joint venture partner, acquiring the land, trees and forestry operations businesses from Timbercorp," Gunns said. Gunns said it is uncertain how its proposal may develop. Gunns will advise the market of any developments and understands the liquidators' intention is to reach agreement prior to Sept. 30, 2009. Based in Melbourne, Australia, Timbercorp Limited (ASX:TIM) -- http://www.timbercorp.com.au/-- is engaged in the establishment, development, marketing and management of primary industry-based projects, the acquisition of land, water rights and infrastructure to support these projects, and the provision of finance to growers in these projects. The company is also involved in eucalypt and olive oil processing operations, asset development, asset management, the sale of agricultural assets and holding investments in agricultural-related enterprises. As reported in the Troubled Company Reporter-Asia Pacific on April 24, 2009, Timbercorp called in voluntary administrators to the company and its subsidiaries. The company appointed Mark Korda and Leanne Chesser of KordaMentha as voluntary administrators. "The company had been hurt by the combined impact of declining global asset values, tightening credit, the economic downturn and drought," according to a statement issued by Kordamentha. On June 29, 2009, the creditors voted unanimously to wind up the 41 companies in the Timbercorp Group and put them into liquidation. TIMBERCORP LTD: Investors Oppose Sale of Almond Assets to Olam -------------------------------------------------------------- Sara Rich at The Australian reports a group of Timbercorp Limited investors will oppose the liquidator's decision to sell part of the almond assets, which includes water rights, to an overseas company. The report, citing Kerree Bezencon, of the Timbercorp Growers Group, says that not only had liquidator KordaMentha made it very difficult for the group to be part of the bidding process, it had sold the almond assets "for a song". As reported in the Troubled Company Reporter-Asia Pacific yesterday, The Sydney Morning Herald said Timbercorp Limited's almond plantations have been sold to Singapore-based multinational food giant Olam International for $128 million. The sale involves 8,096 hectares of almond groves near the Murray River around Robinvale in north-west Victoria, and represents about 30% of the Australian almond crop. It also includes 40,825 megalitres of water rights. The Age relates that Ms. Bezencon said this was too cheap, considering the assets were valued previously at $275 million without the water rights. Ms. Bezencon, The Age notes, questioned why Australian water rights were being sold to an offshore company when the nation was "crying for water". "We will be opposing this, that's for sure, because it is just an unjust situation and I don't think KordaMentha even did the right thing by any of the creditors, let alone the growers, because I think they have sold it for a song," The Age quoted Ms. Bezencon as saying. The Age says the Timbercorp Growers Group claims its fight to stay in the bidding race for Timbercorp's almond assets had been "thwarted on a myriad of levels". KordaMentha partner Andrew Malarkey, however, rejected the group's claims, The Age notes. About Timbercorp Based in Melbourne, Australia, Timbercorp Limited (ASX:TIM) -- http://www.timbercorp.com.au/-- is engaged in the establishment, development, marketing and management of primary industry-based projects, the acquisition of land, water rights and infrastructure to support these projects, and the provision of finance to growers in these projects. The company is also involved in eucalypt and olive oil processing operations, asset development, asset management, the sale of agricultural assets and holding investments in agricultural-related enterprises. As reported in the Troubled Company Reporter-Asia Pacific on April 24, 2009, Timbercorp called in voluntary administrators to the company and its subsidiaries. The company appointed Mark Korda and Leanne Chesser of KordaMentha as voluntary administrators. "The company had been hurt by the combined impact of declining global asset values, tightening credit, the economic downturn and drought," according to a statement issued by Kordamentha. On June 29, 2009, the creditors voted unanimously to wind up the 41 companies in the Timbercorp Group and put them into liquidation. ========= C H I N A ========= CHINA POWER: Fitch Downgrades Issuer Default Ratings to 'BB' ------------------------------------------------------------ Fitch Ratings has downgraded China Power International Development Limited's Long-term foreign and local currency Issuer Default Ratings to 'BB' from 'BBB-' and its Short-term foreign and local currency IDRs to 'B' from 'F3'. The ratings have been removed from Rating Watch Negative where they were placed on 11 August 2008, reflecting the potential acquisition of Wu Ling Power from its parent, CPI Group, which was expected to further increase CPI's leverage post completion. The Outlook is Stable. "The downgrades reflect Fitch's reassessment of CPI's linkages with its controlling shareholder China Power Investment Corporation and the pending acquisition of Wu Ling Power; the latter is expected to delay CPI's ability to de-leverage," says Simon Wong, Director in Fitch's Asia-Pacific energy and utilities team. CPI's stand-alone credit profile has weakened following the incurrence of heavy operating losses in FY08 and reflecting the company's plans for a substantial debt-funded capital investment programme. The pending acquisition of a 63% stake in the highly- leveraged WLP will place further pressure on its credit metrics, leading to Fitch's assessment that CPI's stand-alone rating has weakened by one notch to 'BB'. Fitch applied its Parent and Subsidiary rating Linkage methodology to assess the linkages between CPI and its parent CPI Group. The parent's consolidated credit profile is weaker than CPI's stand- alone 'BB' rating by one notch and given the lack of ring-fencing of CPI from its parent, CPI's rating -- before any consideration of State support -- is therefore constrained at 'BB-'. In addition, Fitch has applied a "bottom-up" approach as set out in the same methodology to notch up the final rating to 'BB' by one notch from the constrained 'BB-' to reflect CPI's and CPI Group's strategic importance to the country and the expectation of continuing tangible support being extended by the Chinese government. WLP is principally engaged in hydropower generation in Hunan and Guizhou, with controlling interests in 10 hydro power stations and a total equity capacity of 3.56GW at end 2008; a further 2.4GW is under construction and development. Fitch notes WLP's concentration and volume risk as the majority of its hydro assets are located along the Yuan Jiang River. On completion of the WLP acquisition, CPI's equity capacity will increase by approximately 25% to 11.3GW based on its equity capacity of 9GW at end 2008. Fitch notes WLP's high leverage (9.4x at 30 September 2008) and the largely debt-funded capex program will delay CPI's ability to de-leverage, especially during a period of weaker electricity demand. The ratings reflect CPI's well-situated coal-fired generating assets (which are in close proximity to coal mines), its highest average utilisation hours amongst Fitch-rated Chinese IPPs, lower- than-average unit fuel cost, and the fuel-mix diversification benefits expected from the Wu Ling acquisition. CPI also benefits from good access to bank funding, which is expected largely to mitigate the increased liquidity risk generated by its aggressive capital expenditure plans to expand its capacity to 15GW by 2010. The Stable Outlook reflects Fitch's expectation that the Chinese government will continue to provide support to the Chinese IPPs and that coal prices are likely to remain largely stable. Fitch expects CPI's total adjusted debt/EBITDAR to fall to 8.5x by 2011. A prolonged suspension of the tariff mechanism during periods of substantial coal price increase and/or significant debt-funded capex and acquisition would be likely to lead to a negative rating action. PROTOSTAR LTD: Agrees to Return Erroneous Wire Transfer ------------------------------------------------------- ProtoStar Ltd. has agreed to return an erroneous transfer made by a former customer just days after ProtoStar's bankruptcy filing. On July 28, ProtoStar notified Antrix Corporation Ltd. that it was terminating an agreement effective July 31, 2009, and consequently it would not be providing any services for July. On Aug. 4, Antrix wire transferred US$262,500 to ProtoStar under the contract for services ProtoStar would have provided in August. Saying that it is not entitled to the payment, ProtoStar has submitted to the Court a stipulation providing for its return of the money to Antrix. The stipulation is scheduled for hearing on October 22. About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659.) The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. In their petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. PROTOSTAR LTD: PLDT Looking for US$27.5MM Deposit, Wants Probe -------------------------------------------------------------- ProtoStar Ltd. is contesting a motion by Philippine Long Distance Telephone Company to conduct a probe under F.R.B.P. Rule 2004. The Debtor says that PLDT's proposal would only delay its ongoing sale process. ProtoStar will hold an Oct. 14 auction for the sale of its two satellites and other assets. On August 28, 2009, PLDT filed a motion, seeking discovery relating to "facts and circumstances" relating to PLDT's deals with ProtoStar and the transfer of US$27.5 million from PLDT to the Debtors on Sept. 17, 2008. PLDT says it requires information to determine whether it possesses certain causes of action or claims against the Debtors and third parties, including the Debtors' officers and directors as well as alleged secured lenders. The Debtors operate satellites that provide direct-to-home satellite television and broadband Internet access across the Asia-Pacific region. PLDT is a leading telecommunications provider in the Philippines. In September 2008, the parties entered into an agreement where ProtoStar was to provide PLDT with access to certain transponders on the ProtoStar I Satellite, thereby providing satellite coverage in specific areas, for a seven-year term beginning in 2011. As part of the deal, PLDT gave a US$27.5 million deposit in September 2008. ProtoStar in response said that that the PLDT's request for expedited discovery is overbroad and abusive. It did not say whether the Priority Deposit is intact. It said PLDT is an unsecured creditor. Unsecured creditors would have to wait in line with other equally ranked creditors before receiving pro rata distributions of their claims pursuant to a Chapter 11 plan. Secured creditors would have to be paid first before unsecured creditors are paid. The Bankruptcy Court has set October 14, 2010, as the general claims bar date. Proofs of claim by governmental units are due January 25, 2010. Meanwhile the Bankruptcy Court entered an order authorizing the debtors to hire UBS Securities LLC as investment banker and financial advisor. About ProtoStar Ltd. Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite operator formed in 2005 to acquire, modify, launch and operate high-power geostationary communication satellites for direct-to- home satellite television and broadband internet access across the Asia-Pacific region. The Company and its affiliates filed for Chapter 11 on July 29, 2009 (Bankr. D. Del. Lead Case No. 09-12659.) The Debtor selected Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of Appleby as their Bermuda counsel; UBS Securities LLC as financial advisor & investment banker and Kurtzman Carson Consultants LLC as claims and noticing agent. In their petition, the Debtors listed between US$100 million and US$500 million each in assets and debts. As of December 31, 2008, ProtoStar's consolidated financial statements, which include non-debtor affiliates, showed total assets of US$463,000,000 against debts of US$528,000,000. ProtoStar is contesting a motion by Philippine Long Distance Telephone Company for a probe under FRBP Rule 2004. The Debtor says that PLDT's claims are merely unsecured claims and any probe would delay its ongoing sale process. On August 28, 2009, PLDT filed a motion, seeking discovery relating solely to money it is owed, including "facts and circumstances" relating to PLDT's deals with ProtoStar and the transfer of $27.5 million from PLDT to the Debtors on Sept. 17, 2009. The Bankruptcy Court has set October 14, 2010, as the general claims bar date. Proofs of claim by governmental units are due January 25, 2010. Meanwhile the Bankruptcy Court entered an order authorizing the debtors to hire UBS Securities LLC as investment banker and financial advisor. ================ H O N G K O N G ================ AMP HOLDINGS: Court to Hear Wind-Up Petition on October 28 ---------------------------------------------------------- A petition to wind up the operations of AMP Holdings Limited will be heard before the High Court of Hong Kong on October 21, 2009, at 9:30 a.m. Shiu Yu Wah filed the petition against the company on August 19, 2009. APEX MIGHT: Creditors and Contributories to Meet on September 25 ---------------------------------------------------------------- The creditors and contributories of Apex Might Enterprises Limited will hold their meeting on September 25, 2009, at 2:30 p.m. and 3:30 p.m., respectively. The meeting will be held at the Official Receiver's Office, 10th Floor of Queensway Government Offices, in 66 Queensway, Hong Kong. CANTON PROPERTY: Court to Hear Wind-Up Petition on October 21 ------------------------------------------------------------- A petition to wind up the operations of Canton Property Investment (Hong Kong) Limited will be heard before the High Court of Hong Kong on October 21, 2009, at 9:30 a.m. The Petitioner's solicitor is: Lovells One Pacific Place, 11th Floor 88 Queensway Hong Kong CITIGROUP INC: Names Tsang as Co-Head of China Investment Banking ----------------------------------------------------------------- The Wall Street Journal reports that Citigroup Inc. has hired former Merrill Lynch & Co. banker Rodney Tsang as co-head of its China investment-banking team. Citing an internal Citigroup memo, the Journal discloses that Mr. Tsang will be based in Hong Kong and report to Farhan Faruqui, head of Citigroup's Asia Pacific Global Banking. The Journal says Mr. Tsang will join Citigroup after spending two and a half years at Merrill, now part of Bank of America Corp., as a managing director. Before that, the Journal relates, Mr. Tsang worked for Credit Suisse for about six years. Based in New York, Citigroup Inc. (NYSE: C) -- http://www.citigroup.com/-- is organized into four major segments -- Consumer Banking, Global Cards, Institutional Clients Group, and Global Wealth Management. At June 30, 2009, Citigroup had total assets of $1.84 trillion and total liabilities of $1.69 trillion. As reported in the Troubled Company Reporter on November 25, 2008, the U.S. government entered into an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. The U.S. Treasury and the Federal Deposit Insurance Corporation agreed to provide protection against the possibility of unusually large losses on an asset pool of roughly $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. As a fee for this arrangement, Citigroup issued preferred shares to the Treasury and FDIC. The Federal Reserve agreed to backstop residual risk in the asset pool through a non-recourse loan. Citigroup, the third-biggest U.S. bank, received $52 billion in bailout aid. Other bailed-out banks, including Bank of America Corp., Wells Fargo & Co., have pledged to repay TARP money. JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, repaid TARP funds in June. Citigroup is one of the banks that, according to results of the government's stress test, need more capital. EMPIRE TOYS: Pays First Dividend -------------------------------- Empire Toys (Hong Kong) Limited paid the first dividend on September 18, 2009. The company paid 3.00% to all received claims. The company's liquidators are: John Robert Lees Colum Sebastian Joseph Bancroft Henley Building, 20th Floor 5 Queen's Road Central Hong Kong EXECUTIVE RESOURCES: Court to Hear Wind-Up Petition on October 21 ----------------------------------------------------------------- A petition to wind up the operations of Executive Resources Limited will be heard before the High Court of Hong Kong on October 21, 2009, at 9:30 a.m. Holita Company Limited filed the petition against the company on August 18, 2009. The Petitioner's solicitors are: Kam & Fan Two Chinachem Plaza Unit A, 22nd Floor 68 Connaught Road, Central Hong Kong FULL CREATION: Court Enters Wind-Up Order ----------------------------------------- On August 31, 2009, the High Court of Hong Kong entered an order to have Full Creation Development Limited's operations wound up. GALLERIA (HONG KONG): Court to Hear Wind-Up Petition on Sept. 30 ---------------------------------------------------------------- A petition to wind up the operations of Galleria (Hong Kong) Limited will be heard before the High Court of Hong Kong on September 30, 2009, at 9:30 a.m. Bank of America N.A. filed the petition against the company on July 22, 2009. The Petitioner's solicitor is: Clifford Chance Jardine House, 28th Floor One Connaught Place Central, Hong Kong GOLDEN CHOICE: Court to Hear Wind-Up Petition on October 21 ----------------------------------------------------------- A petition to wind up the operations of Golden Choice Investment (Group) Limited will be heard before the High Court of Hong Kong on October 21, 2009, at 9:30 a.m. The petitioner's solicitor is: Lovells One Pacific Place, 11th Floor 88 Queensway Hong Kong NOBLE GROUP: China Investment Buys US$850-Mln Stake in Firm ----------------------------------------------------------- Noble Group Ltd disclosed that China Investment Corporation bought 573,000,000 shares in the Company for a total consideration of approximately US$850 million at a price of SGD2.1137 per share. The placement comprised of 438,000,000 newly issued shares by the Company and 135,000,000 shares from trusts associated with the interests of Noble founder and CEO Richard Elman. The placement is subject to approval of the respective boards of directors of Noble Group and CIC and final legal documentation. The placement was the result of extensive discussions between the two parties and underscores the expertise the Noble Group has developed in supply chain management and the distribution of commodities, particularly agricultural products. Noble's diverse agricultural activities include farm production in Argentina, Uruguay, and Brazil which is linked to an internal logistic and storage capability. Access to export markets is further supported by 5 owned port facilities throughout South America. Noble's other agricultural assets include crushing plants and sugar refineries. The newly issued shares will provide the Noble Group with additional capital to pursue strategic investments in key agricultural markets globally. The shares sold by interests associated with Mr. Elman represent a small fraction of his holdings in the Noble Group and are only the second such sale by Mr. Elman since he founded the Group. It is the intention of Mr. Elman to use some of the proceeds associated with the sale of his interests in Noble to fund a charitable foundation with a focus on fostering international relations amongst Asian nations. The sale by Mr. Elman in no way reduces Mr. Elman's commitment to Noble Group, the company which he founded and continues to be involved in day to day management. CIC and Noble have agreed to enter into this partnership for the purpose of jointly investing in infrastructure assets and supply chain management related to agricultural commodities. It is the intention of both companies to bring to bear their respective strengths to achieve results which are satisfactory to their respective shareholders and bring benefits to consumers of agricultural products worldwide. Mr. Elman commented �We are all extremely pleased with the investment by CIC in Noble and heartened that they, like us, evaluate the evolution and success of a company over decades as opposed to merely fiscal quarters. We think the opportunities to work together over the coming decades will be tremendous and we look forward to working together.� Merrill Lynch (Singapore) Pte. Limited acted as the sole placement agent for Noble Group. J.P. Morgan Securities (Asia Pacific) Limited acted as financial advisor to CIC. About Noble Group Noble Group Limited (SIN:N21) -- http://www.thisisnoble.com/-- is a Hong Kong-based investment holding company. The Company, along with its subsidiaries, is engaged in managing the global supply chain of agricultural, industrial and energy products; ship ownership, chartering and the provision of technical ship management services; trade finance; coal mining, soybean and sugar cane crushing activities, and ethanol production. The Company operates in two segments: supply of agricultural, industrial and energy products segment, which comprises the businesses of supplying these commodities and the corporate investments, and logistics segment, which comprises the Company's ship ownership, vessel chartering and related operations and the provision of technical ship management services. In September 2008, Noble and H.E.S. Beheer N.V. acquired Maas Silo B.V. In November 2008, it announced the sale of its interest in Portman Limited. As of May 27, 2009, Noble held a 58.36% interest in Gloucester Coal Limited. * * * Noble Group Limited continues to carry Moody's Investors Service's "Ba1" corporate family and senior unsecured bond ratings with a stable outlook. NOBLE GROUP: S&P Raises Corporate Credit Rating From 'BB+' ---------------------------------------------------------- Standard & Poor's Ratings Services said that it had raised the long-term corporate credit rating on Noble Group Ltd. to 'BBB-' from 'BB+'. The outlook is stable. At the same time, S&P also raised the issue rating on the company's debt to 'BBB-' from 'BB+'. All the ratings were removed from CreditWatch, where they had been placed with positive implications on Aug. 17, 2009, after the company announced satisfactory interim results despite challenging operating conditions. "The upgrade reflects Noble's satisfactory credit profile, strengthening risk management, and satisfactory capitalization that is supportive of the company's business expansion," said Standard & Poor's credit analyst Ryan Tsang. "In S&P's view, the management team has demonstrated its competency in managing the volatile commodity supply chain business and maintaining a satisfactory gross margin in the past 21 months, particularly in the fourth quarter, 2008 and first half of 2009. The company's improved risk management system provided adequate control over its growing exposure to commodity trading and an expanding asset base. S&P believes this exposure is unlikely to threaten Noble's overall financial strengthen," said Mr. Tsang. Noble's approach to taking measured and reasonable risks is a positive aspect of its risk management. The company's commitment to boost its risk management capability is evidenced by its significant investment in risk management resources, including human resources and IT systems, in the past few years. The rating also reflects Noble's ability to integrate acquired operations and assets, in addition to its satisfactory risk management function, reasonably good equity capital strength, and satisfactory financial risk profile. These strengths are counterbalanced by the company's moderate business scale in a low- margin, high-volume business, execution risk from its expanding business scope and fixed asset bases, and increasing structural exposure to noncurrent assets, including mine properties, which have a high market risk that cannot be easily hedged. In addition, a weak global economy and volatility in the commodity markets are likely to continue to challenge Noble's ability to manage its risks. Noble has evolved from a transactional commodity business into increasingly integrated supply chain operation by acquiring and turning around underperforming assets. The company invests significant management resources to these newly acquired assets, including managed mines, agriculture assets, ports and terminals, and processing plants. Noble so far has been able to manage these risks and assets, but continuous expansion will put more pressure on the company's management resources. Growing complexity is also likely to heighten the operational risks. The stable outlook reflects S&P's expectation that Noble is likely to continue its satisfactory financial performance and maintain leverage at a reasonable level while pursuing its expansion strategy. S&P believes the company will be able to keep the volatility in its financial performance to a manageable level, due to its risk management function, and that its satisfactory financial strength will remain intact. NON-NO FASHION: Appoints Wai Dune Charles as Liquidator ------------------------------------------------------- On August 28, 2009, Chan Wai Dune Charles was appointed as liquidator of Non-No Fashion Wholesale Limited. The Liquidator can be reached at: Chan Wai Dune Charles Sunning Plaza, 20th Floor 10 Hysan Avenue Causeway Bay Hong Kong REGENT SUMMIT: Court to Hear Wind-Up Petition on October 21 ----------------------------------------------------------- A petition to wind up the operations of Regent Summit Holdings Limited will be heard before the High Court of Hong Kong on October 21, 2009, at 9:30 a.m. The petitioner's solicitor is: Lovells One Pacific Place, 11th Floor 88 Queensway Hong Kong SKYLINK GROUP: Court to Hear Wind-Up Petition on October 21 ----------------------------------------------------------- A petition to wind up the operations of Skylink Group Holdings Limited will be heard before the High Court of Hong Kong on October 21, 2009, at 9:30 a.m. The petitioner's solicitor is: Lovells One Pacific Place, 11th Floor 88 Queensway Hong Kong THREE STARS: Creditors and Contributories to Meet on September 25 ----------------------------------------------------------------- The creditors and contributories of Three Stars Knitting Factory Limited will hold their meeting on September 25, 2009, at 2:30 p.m. and 3:30 p.m., respectively. The meeting will be held at the Official Receiver's Office, 10th Floor of Queensway Government Offices, in 66 Queensway, Hong Kong. VICTORIOUS RUN: Court to Hear Wind-Up Petition on October 7 ----------------------------------------------------------- A petition to wind up the operations of Victorious Run Limited will be heard before the High Court of Hong Kong on October 7, 2009, at 9:30 a.m. Shui On Centre Company Limited filed the petition against the company on July 24, 2009. The Petitioner's solicitors are: Robin Bridge & John Liu Wincome Centre, 5th & 6th Floor No. 39 Des Voeux Road Central Hong Kong WYNN RESORTS: To Raise Up to HK$12.6 Bil. in a HongKong IPO ----------------------------------------------------------- Wynn Resorts Ltd. plans to raise as much as HK$12.6 billion (US$1.63 billion) in a Hong Kong initial public offering of its Macau casino assets, Bloomberg News reports citing two people familiar with the matter. According to the report, the two people said Wynn plans to sell 1.25 billion shares for between HK$8.52 and HK$10.08 apiece. The sale represents about 25% of the Macau business, Bloomberg notes. JPMorgan Chase & Co., Morgan Stanley and UBS AG were hired to manage the sale, and began offering the stock to investors on September 21, Bloomberg relates. Wynn Resorts, Limited (NASDAQ:WYNN) -- http://www.wynnresorts.com/ -- is a developer, owner and operator of destination casino resorts. It owns and operates three destination casino resorts: Wynn Las Vegas, on the Strip in Las Vegas, Nevada, Encore at Wynn Las Vegas located adjacent to Wynn Las Vegas, and Wynn Macau, located in the Macau Special Administrative Region of the People's Republic of China (Macau). The Company is also constructing Encore Wynn Macau, an expansion of its Wynn Macau resort. * * * As reported in the Troubled Company Reporter-Asia Pacific on Aug. 20, 2009, Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on Wynn Resorts Ltd. and its wholly owned subsidiary Wynn Las Vegas LCC. The rating outlook is negative. At the same time, S&P revised its recovery rating on Wynn Las Vegas' first mortgage notes to '2' from '1'. The '2' recovery rating indicates S&P's expectation of substantial (70%-90%) recovery for lenders in the event of a payment default. S&P also lowered its issue-level rating on this debt to 'BB+' (one notch higher than the 'BB' corporate credit rating) from 'BBB-', in accordance with S&P's notching criteria for a '2' recovery rating. WING WO: Court Enters Wind-Up Order ----------------------------------- On September 2, 2009, the High Court of Hong Kong entered an order to have Wing Wo Frozen Food Company Limited's operations wound up. WISE ELITE: Contributories and Creditors Hold Meeting ----------------------------------------------------- The contributories and creditors of Wise Elite Holdings Limited held a separate meetings on September 18, 2009. * HONGKONG: Bankruptcy Filings Up 33% Yoy to 1,099 in August ------------------------------------------------------------- Bankruptcy petitions in Hong Kong jumped 33% in August from a year earlier, Reuters reports citing government data. Reuters relates bankruptcy petitions totalled 1,099 in August month, up from 824 a year earlier but down 25% from 1,475 petitions in July. The annual pace of increase was slightly slower than in July when petitions rose 36% from a year earlier, Reuters says. According to Reuters, analysts said Hong Kong in the second quarter pulled out of its worst recession since the Asian financial crisis a decade ago but recovery is likely to be slow as global demand remains weak. ========= I N D I A ========= AXIS BANK: Raises US$720 Million in Share Sale to Investors ----------------------------------------------------------- Axis Bank Ltd. raised US$720 million in a share sale to institutional investors, Bloomberg News reports. The report, citing a person with direct knowledge of the sale, says the shares were sold for INR906.70 apiece. The bank hired J.P. Morgan India Pvt., Deutsche Equities India Pvt. and Goldman Sachs (India) Securities Pvt to arrange the sale, Bloomberg relates citing offer document. Headquartered in Mumbai, India, Axis Bank Ltd, formerly known as UTI Bank Limited, -- http://www.axisbank.com/-- provides a suite of corporate and retail banking products. The Company operates in four segments: Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Business. The Treasury segment includes investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account and for customers and central funding. The Retail Banking segment constitutes lending to individual/small business subject to the orientation, product and granularity criterion. Retail Banking activities also include liability products, card services, Internet banking and depository. The Corporate/Wholesale Banking includes corporate relationships not included under Retail Banking, corporate advisory services, placements and syndication, management of public issue, project appraisals, capital market related services and cash management services. * * * AXIS Bank Ltd currently holds Moody's Investors Service's Ba2 Foreign LT Bank Deposits rating that was placed on July 1, 2005. HALDYN GLASS: CRISIL Lifts Ratings on Various Bank Loans to 'BB' --------------------------------------------------------------- CRISIL has upgraded its ratings on Haldyn Glass Gujarat Ltd's bank loan facilities to 'BB/Positive/P4+' from 'D/P5'. Facilities Ratings ---------- ------- INR160.0 Million Cash Credit BB/Positive (Upgraded from 'D') INR256.3 Million Long Term Loan BB/Positive (Upgraded from 'D') INR198.7 Million Proposed Long BB/Positive (Upgraded from Term Bank Loan Facility 'D') INR10.0 Million Letter of Credit/ P4+ (Upgraded from 'P5') Bank Guarantee INR10.0 Million Letter of Credit P4+ (Upgraded from 'P5') INR15.0 Million Bank Guarantee P4+ (Upgraded from 'P5') The upgrade reflects timely repayment by Haldyn on its term loan installments over the past six months, with no overdrawing on its fund-based facilities. In addition, sanctions obtained for fresh term loans and for enhancement in working-capital limits have strengthened Haldyn's liquidity considerably. The upgrade also takes into account expected growth in Haldyn's operating income and profitability over the medium term, following commissioning of its expanded capacities. The ratings continue to reflect Haldyn's exposure to risks relating to customer concentration in its revenue profile, and impact on operating margins due to fluctuations in prices of natural gas. These weaknesses are, however, partially offset by the company's comfortable financial risk profile, and healthy operating efficiencies. Outlook: Positive CRISIL believes that Haldyn's net cash accruals will improve, driven by healthy revenue growth and increasing demand from the liquor industry. The ratings may be upgraded if the company's financial risk profile improves substantially, led by demonstration of timely debt repayments. Conversely, the outlook may be revised to 'Stable' if Haldyn takes on large, debt-funded capital expenditure, or if its liquidity deteriorates significantly. About Haldyn Glass Set up in 1994 by Haldyn Glass Limited in joint venture with Gujarat Industrial Investment Corporation (GIIC), Haldyn manufactures clear glass bottles. It has capacity to manufacture 300 tonnes per day (tpd). In March 2008, the company set up additional capacity of around 100 tpd, and the earlier existing capacity was increased to 200 tpd in 2009. Haldyn reported a profit after tax (PAT) of INR68.4 million on net sales of INR1.16 billion for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR 81 million on net sales of INR0.77 billion for 2007-08. The reduction in PAT in 2008-09 was due to increase in interest and depreciation costs on expansion and closure of one furnace for 85 days. JET AIRWAYS: Incurs $80 Million Loss From Pilots' Five-day Strike ----------------------------------------------------------------- Dow Jones Newswires reported that Jet Airways (India) Ltd. said it has incurred an estimated revenue loss of at least $80 million during a five-day standoff with its pilots. Dow Jones says Jet Airways Executive Director Saroj Dutta told CNBC TV18 television channel that "Full details (of the revenue loss) are still being worked out." Mr. Dutta also said talks are on with investment bankers to raise up to $400 million through an institutional share placement, Dow Jones adds. As reported in Troubled Company Reporter-Asia Pacific on Sept. 9, 2009, Jet Airways on September 8 canceled at least 130 flights after a large chunk of pilots failed to report for work as a protest against the termination of two pilots. Jet Airways said in a press statement that a section of the pilots have resorted to a "simulated strike by reporting sick". The pilots are demanding the reinstatement of two colleagues -- Sam Thomas and G. Balaraman -- who had been terminated for joining a new formed union, the National Aviators Guild. The TCR-AP, citing Dow Jones Newswires, reported on September 14, that Jet Airways' pilots agreed to resume work beginning Sunday, September 13, ending a five-day deadlock with the management, which agreed to take back four sacked pilots. Jet Airways canceled more than 1,000 flights and lost 100,000 passengers due to the standoff that last for five days. About Jet Airways Jet Airways (India) Ltd (BOM:532617) -- http://www.jetairways.com/ -- is engaged in providing air transportation business. The geographic segments of the company are domestic and international. The company has a frequent flyer program named Jet Privilege wherein the passengers who uses the services of the airline become services of the airline become members of Jet Privilege and accumulates miles to their credit. The company's subsidiaries include Jet Lite (India) Limited, Jetair Private Limited, Jet Airways LLC, Trans Continental e Services Private Limited, Jet Enterprises Private Limited, Jet Airways of India Inc., India Jetairways Pty Limited and Jet Airways Europe Services N.V. On April 20, 2007, the company acquired Sahara Airlines Limited. * * * Jet Airways posted a consolidated net loss of INR9614.10 million for the year ended March 31, 2009, compared with consolidated net loss of INR6538.70 million for the year ended March 31, 2008. Consolidated total sales increased from INR109907.20 million for the year ended March 31, 2008 to INR134488.60 million for the year ended March 31, 2009. PMC PROJECTS: CARE Rates INR52.50cr Long-term Loans at 'CARE BB' ---------------------------------------------------------------- CARE assigned a 'CARE BB' rating to the INR52.50 crore long-term bank loans of PMC Projects (India) Private Limited. Facilities with this rating are considered to offer inadequate safety for timely servicing of debt obligations. Such facilities carry high credit risk. This rating is applicable to facilities having tenure of more than one year. The rating is primarily constrained by delay in servicing of debt obligation in the past. It also factors in PMC's low net worth base & high gearing levels, sole dependency on Adani group companies for its revenue which is charged mainly on ad hoc basis and relatively short track record of operations. The rating, on the other hand, take comfort from future business potential arising out of continuous expansion plan of various companies from Adani group, team of experienced professionals for monitoring projects pertains to high end infrastructure value chain and moderate financial risk profile. Improvement in debt servicing track record and change in expected revenue are key rating sensitivities. PMC Projects (India) Private Limited is Ahmedabad based project Consultancy Company, which commenced operations during FY06 with focus on port related services viz. dredging and project planning & control services mainly to various companies of Adani group. As per provisional results for 11M FY09, PMC reported a Profit After Tax (PAT) of INR2.83 crore on total income of INR80.23 crore as against a PAT of INR6.39 crore on total income of INR79.04 crore for FY08. RINDIAM EXPORT: CARE Assigns 'CARE BB' Rating on INR19.20cr Loan ---------------------------------------------------------------- CARE has assigned a 'CARE BB' rating to the Long-term Bank Facilities of M/s. Rindiam Export. This rating is applicable for facilities having tenure of over one year. Facilities with this rating are considered to offer inadequate safety for timely servicing of debt obligations. Such facilities carry high credit risk. These ratings are assigned to the Long-term Bank Facilities aggregating INR19.20 crore. The rating assigned by CARE is based on the capital deployed by the partners and the current financial strength the firm. The rating may undergo change in case of withdrawal of capital or of the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The rating is constrained by closely-held partnership firm, small size of business and uninsured debtors. The rating is further constrained by declining sales, operational loss in FY08, high overall gearing, high debtors and collection period, high inventory days and long working capital cycle. The rating considers the track record of promoters and generation of export revenues. Further, strong competition from large number of players in organized and unorganized sectors and economic slowdown in key consumer markets are the key rating sensitivities. About Rindiam Export M/s. Rindiam Export was established in 1989 as a partnership firm and is engaged in the business of importing rough diamonds and exporting polished diamonds for the last 20 years. The firm is run by four partners having considerable experience in the business and the business segments are segregated between the partners. The firm mainly deals in �Sieve�, which are small-sized diamonds in the range of 0.05 cents to 4 cents and focuses mainly on round white-colored diamonds. Majority of exports of RE (around 85% in FY08) are concentrated towards four destinations namely USA, Belgium, Hong Kong and Japan. With the slowdown in demand in the above destinations, and limited diversification in other countries, the turnover and profitability parameters of the company witnessed a declining trend during FY08. The proportion of debtors to total sales is on the higher side at around 47-52% for the last three years. Further, the entire debtors of the firm are uninsured. The partner's capital and the net worth show a declining trend over the last couple of years (FY07 and FY08) on account of withdrawal of capital by the partners. Decline in net worth, coupled with an increase in working capital borrowings resulted in an increase in the overall gearing ratio over the years. RS CONCAST: CRISIL Assigns 'BB-/Stable/P4+' to Bank Debts --------------------------------------------------------- CRISIL has assigned its ratings of 'BB-/Stable/P4+' to the bank facilities of RS Concast Ltd. The ratings reflect RSCL's weak financial risk profile, and exposure to risks relating to the working-capital-intensive nature of its operations. Facilities Ratings ---------- ------- INR70 Million Cash Credit BB-/Stable (Assigned) INR38 Million Term Loan BB-/Stable (Assigned) INR12 Million Letter of Credit P4+ (Assigned) The ratings also reflect company's marginal presence and exposure to cyclicality in the steel industry. These weaknesses are, however, partially offset by the benefits that the company derives from its promoters' experience in the steel industry. Outlook: Stable CRISIL believes that RSCL will maintain a stable credit risk profile backed by the benefits it derive from its promoters' experience in the steel industry. However, CRISIL also believes that company's credit risk profile will continue to be constrained by its weak financial risk profile. The outlook may be revised to 'Positive' if the company's revenues and profitability increase, or if it achieves enhanced integration of operations. Conversely, the outlook may be revised to 'Negative' if the company's operating profits decline sharply, owing to low capacity utilisation, or if it undertakes large, debt-funded capital expenditure. About RS Concast Incorporated in 2004, by the Agarwal family, RSCL manufactures steel ingots. Its production facility at Durgapur (West Bengal) has capacity to manufacture 23,500 tonnes of ingots per annum. The company, being managed by Mr. Rakesh Agarwal, is setting up an induction furnace, with capacity to manufacture of 23,500 tonnes of steel billets per annum. The company also proposes to convert its ingot plant into a billet plant. The new facility is expected to commence commercial operation from December 2009. RSCL is estimated to report a profit after tax (PAT) of INR 1 million on estimated operating income of INR422 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR2 million reported on operating income of INR262 million for 2007-08. SANJAY CHEMICALS: CARE Puts 'CARE BB+' Rating on INR0.35cr LT Loan ------------------------------------------------------------------ CARE has assigned a 'CARE BB+' rating to the INR0.35 crore long- term bank facilities of Sanjay Chemicals (India) Pvt. Ltd. This rating is applicable to facilities having tenure of more than one year. Facilities with this rating are considered to offer inadequate safety for timely servicing of debt obligations. Such instruments carry high credit risk. Also, CARE has assigned a 'PR4' rating to the INR42.25 crore short term bank facilities of the company. This rating is applicable to facilities having tenure up to one year. Facilities with this rating would have inadequate capacity for timely payment of short-term debt obligations and carry high credit risk. Such loans are susceptible to default. CARE assigns '+' or '-' signs to be shown after the assigned rating (wherever necessary) to indicate the relative position within the band covered by the rating symbol. Rating Rationale The ratings are constrained by low profit margins due to trading nature of business, volatile nature of prices of chemicals, susceptibility of profit margins to the fluctuation in exchange rates and increasing competition. The ratings also consider the tight liquidity position as evidenced by high utilization of working capital limits and frequent use of ad-hoc limits. The ratings also factors in the experience of promoters in the chemical trading business, considerable proportion of revenue contributed by the chemicals supplied to relatively stable pharmaceutical industry and long relation with major customers. SCIPL's ability to improve its profit margin and manage its operations in the current external environment of declining demand and volatile prices and promoters' ability to infuse capital to meet the margin money and other bank's covenant requirements are the key rating sensitivities. About Sanjay Chemicals Sanjay Chemicals (India) Pvt. Ltd., started in 1977 by Vijayraj M. Parmar, is involved in trading of various chemicals used in pharmaceuticals, paints, dyes etc. The company procures chemicals domestically and also imports them, to be sold in the domestic market. The company derives 60-70% of its revenue from chemicals sold to the pharmaceutical industry. The company's total income grew from INR172 crore in FY07 to INR209 crore in FY08 due to increase in trading volumes. Due to trading nature of business, SCIPL's profit margins are low. PBILDT margin was 1.12% and PAT margin was 0.32% in FY08. Further, interest cost is high due to working capital-intensive nature of operations. This has led to moderate interest coverage of 1.41x in FY08. TANIA INDUSTRIES: Low Net Worth Prompts CRISIL 'BB' Ratings ----------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank facilities of Tania Industries Pvt Ltd. Facilities Ratings ---------- ------- INR150.0 Million Cash Credit BB/Stable (Assigned) INR6.5 Million Bank Guarantee P4+ (Assigned) The ratings reflect the intense competition in the soybean solvent oil and soya de-oiled cakes (DOC) market, Tania's limited presence in the value chain, its low net worth, and its exposure to unfavorable government regulations and to fluctuations in raw material prices. These weaknesses are partially offset by the strong growth in the company's operating income, its easy access to raw materials, comfortable debt protection measures, and low working capital requirements. Outlook: Stable CRISIL believes that Tania's business risk profile will continue to be constrained by its lack of presence in the value-added products segment. Its net worth is also expected to remain low. The outlook may be revised to 'Positive' in case of a substantial improvement in the company's operating margins and cash accruals, coupled with adequate capacity utilization and off-take. Conversely, the outlook may be revised to 'Negative' in case of higher-than-expected debt-funded capital expenditure (capex), or deterioration in operating margins. About Tania Industries Incorporated in 1980 by Mrs. Kamladevi Mansinghka as an investment company, Tania switched over to trading in soya in 1998. Since 2002, the company has been manufacturing soybean solvent oil and soya DOC. Tania's production facility at Saoner (Nagpur), has a seed-crushing capacity of 500 tonnes per day (tpd). The company sells crude soy oil to refineries, and soya DOC in Orissa, West Bengal, Karnataka, Tamil Nadu, and Andhra Pradesh. Currently, the company is managed by Mr. K C Dawda, who has been with the company since its inception. Tania reported a profit after tax (PAT) of INR22 million on net sales of INR1619 million for 2007-08 (refers to financial year, April 1 to March 31), as against a net loss of INR4.4 million on net sales of INR400 million for 2006-07. V3 ENGINEERS: Default in Debt Repayment Cues CRISIL 'D' Ratings --------------------------------------------------------------- CRISIL has assigned its ratings of 'D/P5' to the bank facilities of V3 Engineers Pvt Ltd as the company has defaulted on its debt obligations because of weak liquidity. Facilities Ratings ---------- ------- INR17.80 Million Long Term Loan D (Assigned) INR115.00 Million Cash Credit Limit D (Assigned) INR30.00 Million Letter of Credit Limit P5 (Assigned) INR40.00 Million Bank Guarantee Limit P5 (Assigned) V3 Engineers Pvt Ltd was set up as a partnership firm in 1990 by Mr. R Guruprasad, Mr. N Vasu, and Mr. S Sampath Raghavan. It was converted to a private limited company in 2000. Based in Bengaluru, V3 is engaged in the manufacture and installation of modular furniture for corporate use; it diversified into the home segment and complete interior solutions in 2006-07 (refers to financial year, April 1 to March 31). For 2008-09, V3 is estimated to have incurred a net loss of INR53 million on net sales of INR461 million; it reported a profit after tax of INR11 million on net sales of INR447 million for 2007-08. ================= I N D O N E S I A ================= AGRI INTERNATIONAL: Liquidity Concerns Cue S&P to Junk Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on Indonesia-based plantation company Agri International Resources Pte. Ltd. to 'CCC+' from 'B-'. The outlook is negative. Standard & Poor's also lowered the issue rating on senior secured notes due 2012 to 'CCC+' from 'B-'. These notes were issued by AI Finance B.V., and are guaranteed by Agri International. "The downgrades reflect S&P's expectation that Agri International's liquidity will become further strained, as S&P project that the company's funds from operations will be low in the next year due to a low production volume and yield performance," said Standard & Poor's credit analyst Yasmin Wirjawan. The rating on Agri International reflects the company's highly leveraged financial risk profile, low yield performance, and risks of earnings volatility. These weaknesses are partly offset by parental support, steady demand, and moderate capital expenditure requirements. "The company's credit protection measures are weak in S&P's view, with an adjusted ratio of debt to annualized EBITDA of about 7x and adjusted EBITDA interest coverage of 1.2x as at March 31, 2009. S&P believes the likelihood of significant improvement is limited, given its high debt burden," said Ms. Wirjawan. Agri International's existing palm oil assets are of low quality. They generate a yield of 10 ton/hectare, half the industry average. As of March 31, 2009, the company's production volume was 13% lower compared than in the previous year, while average selling prices dropped 37% year on year. Production volume could remain low in the near term due to weather conditions. Although crude palm oil prices have steadily improved, they remain low compared with the previous year's. In addition, CPO prices remain cyclical and subject to volatility, resulting in some unpredictability in earnings and cash flows for Agri International. Nevertheless, the company is likely to benefit from continued steady demand for CPO over the medium term. In addition, it has a long-term offtake commitment and management agreement with its parent PT Bakrie Sumatera Plantations Tbk. (B-/Negative/--), which has an effective stake of 51% (direct and indirect) in the company. The offtake agreement is stipulated under Agri International's bond covenants. Although this agreement reduces some of the operating charges, Agri International is still subject to market risk. There is no cross default between BSP and Agri International's existing secured notes. Unless Agri International's operating performance improves significantly, liquidity is likely to become constrained in the next year, in S&P's view, with low FFO in 2009. The negative rating outlook reflects S&P's expectation that Agri International's liquidity will erode due to limited internal cash generation over the next year. S&P may lower the rating if cash flow measures deteriorate further, including EBITDA interest coverage falling to less than 1x as a result of a margin squeeze due to weakening CPO prices, or if plantation yields and output fail to improve and pressure the company's ability to pay its interest obligations. The outlook could be revised to stable if EBITDA improves moderately on a sustained basis, which would better position the company to increase its cash balance and continue to cover interest expenses with cash flow. GARUDA INDONESIA: Gov't to Pay Part of IDR3.36TT Debt to Mandiri ---------------------------------------------------------------- The Jakarta Post reports that the government may have to cover a significant part of the IDR3.36 trillion (US$338 million) PT Garuda Indonesia has to pay PT Bank Mandiri under a debt restructuring deal between the two state enterprises. According to the Post, Bank Mandiri has announced that under the restructuring deal between the two state firms facilitated by the government, Garuda's debts will have swollen to IDR3.36 trillion by the time the national carrier has to settle in mid 2010 following a planned initial public offering (IPO), hugely up from the original principal debt of only IDR1.02 trillion. The total debt of IDR3.36 trillion will incorporate an 18% annual interest rate since the debt first went bad in 2001, the Post says. However, the report notes, Garuda president director Emirsyah Satar said the carrier will only have to pay its original debt of IDR1.02 trillion as the government will cover the rest. �The rest of that [outside the IDR1.02 trillion] is between Mandiri and the government. �It has nothing to do with Garuda,� Mr. Emirsyah was quoted by the Post as saying. According to the Post, Garuda finance director Eddy Porwanto added it was the government that promised the 18% rate of return to the nation's largest lender in the first place, not Garuda. As reported in the Troubled Company Reporter-Asia Pacific on September 1, 2009, The Jakarta Globe said Bank Mandiri will take an 11% stake in PT Garuda Indonesia under a debt-to-equity conversion agreed to by all parties involved, including the central bank. Bank Mandiri will convert US$100 million of the state-owned carrier's bond debt into equity. The deal could be concluded before Garuda's planned initial public offering, scheduled for the middle of next year. A TCR-AP report on Aug. 13, 2009, said Garuda Indonesia expects to raise as much as US$400 million from its much-awaited Initial Public Offering in June, next year. The expected launch, however, is based on a positive outlook of the market condition, vis-a-vis investor sentiment. According to analysts, market response to the IPO will largely depend on the company's ability to settle its US$670 million in debts. Garuda's total debts as of the end of last December reached US$670 million � US$450 million to the European Credit Agency (ECA), US$100 million to Bank Mandiri, and the rest to other creditors. On May 29, 2009, the TCR-AP reported that Garuda Indonesia reached a debt restructuring agreement with several of its creditors to pay its debts. Restructuring the airline's debt into a manageable package is a major prerequisite for holding its initial public offering. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. PT BAKRIE: S&P Downgrades Corporate Credit Rating to 'B-' --------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Indonesia-based plantation company PT Bakrie Sumatera Plantations Tbk. to 'B-' from 'B'. The outlook is negative. At the same time, Standard & Poor's lowered the rating on the senior secured bonds due in 2011 to 'B-' from 'B'. These bonds were issued by BSP Finance B.V. and are guaranteed by BSP. The downgrade reflects S&P's expectation that the liquidity position of BSP's subsidiary, Agri International (CCC+/Negative/ --), will become further strained and it is likely to weaken BSP group's credit profile. "We anticipate that Agri International's funds from operation (FFO) will be low in the next one year due to lower production volume and yield performance. This will pressure its liquidity on the back of its limited cash and heavy debt burden," said Standard & Poor's credit analyst Yasmin Wirjawan. BSP does not consolidate Agri International in its financial statement accounts because its holding of 51% is through direct and indirect ownership. However, Standard & Poor's takes a consolidated view to include Agri International when analyzing the credit profile of BSP, given its significant asset size, high debt level as well as BSP's offtake commitment and management control. The rating on BSP reflects the company's aggressive expansion program, weak cash flow measures, and exposure to crude palm oil (CPO) and rubber prices. CPO and rubber prices are cyclical and subject to volatility, resulting in some unpredictability in earnings and cash flows. These risks are offset by steady demand for CPO, which is likely to continue in the near to medium term and BSP's established track record and management experience in the plantation business. "The negative rating outlook on BSP reflects S&P's expectation that Agri International's liquidity could erode further due to limited internal cash generation over the next year," Ms. Wirjawan said. The rating may be lowered if Agri International's cash flow measures deteriorate further, including EBITDA to interest falling below 1x as a result of margin squeeze, or if Agri International's plantation yields and output fail to improve, thus pressuring the BSP's ability to pay its interest obligation and weakening BSP group's liquidity. With the absence of cross default between Agri International and BSP, a default on Agri International may not necessarily lead to a default on BSP, but would likely add pressure to the rating. A material increase in BSP's debt or deterioration in cash flow generation could also pressure the ratings, Ms. Wirjawan noted. "The outlook may be revised to stable if the group's EBITDA improves materially on a sustained basis, which S&P believes would better position the group to increase its cash balance and improve its liquidity to cover future capital expenditures and financial obligations," she added. * INDONESIA: IDR1-Tril. Needed to Restructure 10 Firms in 2010 -------------------------------------------------------------- PT Perusahaan Pengelola Aset (PPA), the state-sanctioned agency tasked to restructure ailing state firms, has requested IDR1 trillion (about US$102 million) to improve the condition of 10 state-owned companies in 2010, The Jakarta Post reports. The report says the PPA received IDR1 trillion for 2009 and IDR1.5 trillion in 2008 to support its operations. According to the Post, PPA president director Boyke Mukijat said that so far this year, the PPA had spent IDR450 billion on restructuring three companies: -- national carrier PT Merpati Nusantara Airlines, which received IDR300 billion; -- paper producer PT Kertas Kraft Aceh, which received IDR125 billion; and -- textile producer PT Sandang Nasional, which also got IDR25 billion. The Post notes that the rest of the 2009 budget will be spent on restructuring two more firms: -- ship manufacturer PT PAL; and -- construction company PT Waskita Karya. The Post discloses that the PPA has 14 ailing state enterprises on its restructuring list, including: -- shipping company PT Djakarta Lloyd; and -- glass maker PT Industri Gelas. PT Perusahaan Pengelola Aset was set up in 2004 to replace the now-defunct Indonesian Bank Restructuring Agency (IBRA), which was tasked to restructure bad assets taken over from troubled banks following the aftermath of the economic crisis in the late 1990s, according to the Post. ========= J A P A N ========= AIFUL CORPORATION: JCR Downgrades Ratings on Senior Debts to "CCC" ------------------------------------------------------------------ Japan Credit Rating Agency, Ltd., has downgraded the ratings on senior debts and each of the outstanding bonds of Aiful Corporation from BB+ to CCC, placing them under Credit Monitor with Negative direction (#CCC/Negative). Senior debts: #CCC/Negative Issues Amount Issue Date Due Date Coupon (%) Rating ------ ------ ---------- -------- ---------- ------ bonds no.43 JPY10 Bil. 10/20/2004 10/20/2009 1.01 #CCC/Negative bonds no.31 JPY10 Bil. 10/28/2002 10/28/2009 2.18 #CCC/Negative bonds no.46 JPY10 Bil. 04/20/2005 04/20/2010 0.82 #CCC/Negative bonds no.36 JPY10 Bil. 05/28/2003 05/28/2010 1.25 #CCC/Negative bonds no.12 JPY10 Bil. 06/28/2000 06/28/2010 2.93 #CCC/Negative bonds no.49 JPY10 Bil. 07/20/2005 07/20/2010 0.8 #CCC/Negative bonds no.50 JPY10 Bil. 10/19/2005 10/19/2010 1.14 #CCC/Negative bonds no.42 JPY10 Bil. 05/26/2004 05/26/2011 1.58 #CCC/Negative bonds no.44 JPY10 Bil. 10/20/2004 10/20/2011 1.5 #CCC/Negative bonds no.45 JPY10 Bil. 01/26/2005 01/26/2012 1.2 #CCC/Negative bonds no.47 JPY10 Bil. 04/20/2005 04/20/2012 1.22 #CCC/Negative bonds no.52 JPY10 Bil. 11/24/2005 11/22/2012 1.63 #CCC/Negative bonds no.37 JPY10 Bil. 05/28/2003 05/28/2013 1.74 #CCC/Negative bonds no.51 JPY10 Bil. 10/19/2005 10/19/2015 1.99 #CCC/Negative Rationale Aiful announced on September 18 that it and its affiliated companies have begun preliminary consultations with the Japanese Association of Turnaround Professionals to apply for commencement of consensual business revitalization alternative dispute resolution procedures and that the JATP has provisionally accepted the company's preliminary application to utilize the business revitalization procedures. It says that it plans to ask its financial institutions for the maintenance of its debt balance for a certain period and then the debt rescheduling. At present, it does not plan debt forgiveness or debt-equity swap. Following this announcement, JCR downgraded the ratings on senior debs and on each series of the bonds as well to "CCC," placing them under Credit Monitor with Negative direction. JCR considers that if the business revitalization procedure and its drastic structural reform progress in line with its plans, its tough financing conditions will be mitigated. It should be noted that the ADR procedure will be applied to the borrowings from its financial institutions and is currently not applied to the bonds. On the other hand, given deterioration in its business environments such as its lowered financing capacity, shrinkage of its business base, full enforcement of the revised Money Lending Business Control and Regulation Law scheduled for next fiscal year, JCR considers that it is likely that the downward pressure on the earnings and financial structures of the Company will persist. JCR said it will hereafter ascertain progress in the ADR procedure, financial assistance and implementation of further drastic structural reform and will factor in the results of these determinations in the ratings on the senior debts and the bonds of it, removing them from Credit Monitor. AIFUL CORPORATION: Moody's Downgrades Senior Debt Rating to 'B3' ---------------------------------------------------------------- Moody's Investors Service has downgraded to B3 from Ba2 the long- term senior unsecured debt rating and unsecured medium term note rating of Aiful Corporation and kept the rating under review for possible further downgrade. In addition, Aiful's issuer rating was downgraded to Caa1 from Ba2, and kept on review for possible further downgrade. This rating action is in response to the announcement made by Aiful that it is preparing to apply for commencement of consensual business revitalization alternative dispute resolution procedures as prescribed in the Act on Special Measures for Industrial Revitalization (the "Business Revitalization Procedures") with certain creditors. According to the company announcement, Aiful may request financial support from certain of its financial institution creditors with respect to modifying certain maturity and principal repayment schedules of its existing borrowings from certain of their relevant financial institution creditors. Also, according to the company announcement, among those creditors, senior unsecured bond holders of the bonds issued by Aiful inside and outside Japan are not likely to be included. Also, currently, Aiful's business revitalization plan reportedly do not include request of debt forgiveness or debt for equity swaps. The downgrade of the issuer rating to Caa1 reflects the severe pressure on Aiful's liquidity, and the difficulty the company will face in maintaining its franchise over the short term. The review for a possible further downgrade reflects the uncertainty inherent in arbitration procedures, as well as the uncertainty regarding the response of its numerous financial institution creditors. The downgrade of the senior unsecured debt rating to B3 reflects the fact that (1) Aiful's senior unsecured bonds are not included in the proposed plan; (2) the request is limited to the rescheduling of bank debt; and (3) the financial institutions involved may consent to the proposed procedures. Furthermore, even though their consent, if given, would alleviate the pressure on liquidity for the immediate period, in Moody's view, the persistently negative operating environment would continue to pressure Aiful's franchise. Moody's last rating action with respect to Aiful was taken on May 28, 2009, when the long-term senior unsecured debt, issuer ratings, and unsecured MTN rating were downgraded to Ba2 from Baa3 with negative outlook. Aiful's rating was assigned by evaluating factors Moody's believes are relevant to its credit profile, such as franchise value, risk positioning, operating and regulatory environment, and financial fundamentals versus its competitors, as well as the company's projected performance in 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 Aiful's rating to be comparable to those of other issuers with similar credit risk. Aiful Corporation, headquartered in Kyoto, was established in 1967. It is a major, specialized consumer finance company in Japan, with consolidated assets of about JPY1.5 trillion as of June 31, 2009. AIFUL CORP: S&P Downgrades Counterparty Credit Rating to 'CC' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term counterparty credit rating on Aiful Corp. to 'CC' from 'BB'. At the same time, Standard & Poor's removed the rating from CreditWatch, where it had been placed with negative implications on Sept. 14, 2009, to reflect the risks over cash flow deterioration. The outlook is negative. Standard & Poor's also lowered its senior unsecured rating on the company's debt to 'CCC' from 'BB', and revised the CreditWatch status to developing from negative. The short-term counterparty rating, which was not placed on CreditWatch, was lowered to 'C' from 'B'. The rating action is based on an announcement by Aiful that the company is preparing to ask for a delay in the repayment of its bank borrowings through ADR procedures. Aiful has been facing a difficult financing environment because the company has a large amount of debt maturing within one year and is further constrained by refunds of overcharged interest. Uncertainties over the impact of the amended money lending business law, which is scheduled to be implemented by mid-2010, are adding to the difficulties that Aiful is facing. Under the revitalization plan, the company is expected to ask lender banks to extend maturities of debts once the Japanese Association of Turnaround Professionals, the third party institution that will act as a mediator, officially accepts an application from Aiful to start ADR procedures. A revision of the company's repayment schedule will constitute a default according to Standard & Poor's rating criteria. At the same time, however, the possibility of Aiful filing for bankruptcy cannot be ruled out if creditor institutions do not agree to Aiful's revitalization plans. Although Aiful's current plan does not include revisions of terms or conditions of any other debts, including bonds, Standard & Poor's lowered its rating on the company's senior unsecured bonds because of Aiful's current financial difficulties. A repayment extension of bank borrowings is likely to underpin the probability of Aiful honoring other debts, but the feasibility of the revitalization plan amid the current difficult business environment is a key issue. The negative outlook on the long-term counterparty rating is based on Standard & Poor's expectation that the rating will be lowered to 'SD' or 'D'. The long-term counterparty rating on Aiful may be lowered to 'SD' (Selective Default) if the terms and conditions of bank borrowings are revised as planned by the company. If the company enters into any bankruptcy procedure, the rating will be lowered to 'D'. The rating on senior unsecured debt will be removed from CreditWatch after Standard & Poor's scrutinizes any changes in the terms and conditions of bank borrowings, and their impact on other debts. Ratings List Downgraded; CreditWatch/Outlook Action Aiful Corp. To From -- ---- Counterparty Credit Rating CC/Negative/C BB/Watch Neg/B Senior Unsecured (19 issues) CCC/Watch Dev BB/Watch Neg CSC SERIES: S&P Retains CreditWatch Negative on Various Bonds ------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on the class A-2 to class G-3 yen-denominated bonds issued under the CSC, Series 1 GK transaction would remain on CreditWatch with negative implications, where they were initially placed on March 26, 2009. The aforementioned ratings were kept on CreditWatch negative on June 23, 2009. At the same time, Standard & Poor's affirmed its rating on the class X bonds issued under the same transaction. On March 26, 2009, Standard & Poor's placed its ratings on the class A-2 to class G-3 bonds on CreditWatch with negative implications, citing potential uncertainty over proposed changes to the terms of one of the transaction's underlying loans (representing approximately 38% of the total initial issuance amount of the bonds). Standard & Poor's believed that there might be risks associated with the proposed changes, which were detailed in an important notice issued by the servicer. S&P has learned that the proposed changes have been rejected. Yet, since there is a possibility that the loan may default due to breach of covenant, S&P hold the view that there appears to be uncertainty over the recovery prospects of the properties that back the aforementioned loan. In addition, another underlying loan (representing about 19% of the total issuance amount of the bonds) had defaulted in May 2009, and collection procedures relating to the sale of the collateral properties backing the defaulted loan are underway, in accordance with rules specified in the servicing agreement. Standard & Poor's therefore intends to continue to monitor the progress of collection from the collateral properties. Accordingly, S&P is keeping its ratings on the class A-2 to class G-3 bonds on CreditWatch with negative implications. Standard & Poor's plans to review the ratings on the class A-2 to class G-3 bonds after considering the recovery prospects of the collateral properties relating to the aforementioned two loans. S&P is considering amending the rating methodology for interest- only certificates, which include class X of this transaction. If the proposal is adopted, it could affect the rating on class X. At this point, however, Standard & Poor's has affirmed its rating on class X. CSC, Series 1 GK is a multi-borrower CMBS transaction. The bonds were initially secured by 11 nonrecourse loans extended to six obligors, which were originally backed by 72 real estate trust certificates and real estate properties. The transaction was arranged by Credit Suisse Securities, and ORIX Asset Management & Loan Services Corp. is the transaction servicer. Ratings Kept On Creditwatch Negative CSC, Series 1 GK JPY36.2 billion yen-dominated bonds due November 2012 Class Rating Initial Issue Amount ----- ------ -------------------- A-2 AAA/Watch Neg JPY18.1 bil. A-3 AAA/Watch Neg JPY3.9 bil. B-2 AA/Watch Neg JPY1.7 bil. B-3 AA/Watch Neg JPY1.5 bil. C-2 A/Watch Neg JPY3.2 bil. D-2 BBB/Watch Neg JPY3.2 bil. E-2 BBB-/Watch Neg JPY0.9 bil. E-3 BBB-/Watch Neg JPY0.6 bil. F-3 BB/Watch Neg JPY1.9 bil. G-3 B/Watch Neg JPY1.2 bil. Rating Affirmed Class Rating Initial Issue Amount ----- ------ -------------------- X* AAA JPY36.2 bil. (Initial notional principal) * Interest only JAPAN AIRLINES: May Receive More Aids from Japanese Government -------------------------------------------------------------- Japan Airlines Corp. may receive more government-backed loans as it seeks alliance partners, Bloomberg News reports citing Shizuka Kamei, the nation's newly appointed financial services minister. "It's a big national project to rehabilitate the airline properly," Mr. Kamei told Bloomberg News in an interview. "We will back up JAL if the company makes all efforts for its survival." According to the report, Mr. Kamei said the state-owned Development Bank of Japan, which has already made JPY235 billion (US$2.6 billion) in loans to the Tokyo-based carrier, could provide more funds. The government support may encourage carriers American Airlines, Delta Air Lines Inc. and Air France-KLM to pursue investments in Japan Air, the report states. As reported by the TCR on Sept. 15, 2009, AMR Corp. and Delta Air are reportedly in separate talks with Japan Airlines to forge an expansive joint venture with the carrier. The Wall Street Journal said that American Airlines would also consider taking a minority stake in JAL, although any such investment would likely be capped at hundreds of millions of dollars. Delta is also negotiating to acquire a minority stake of around $300 million in JAL. The Journal relates that Delta wants JAL to join its rival SkyTeam alliance. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan- based holding company that is active in five business segments through its 225 subsidiaries and 82 associated companies. The Air Transportation segment is engaged in the operation of passenger and cargo planes. The Air Transportation-Related segment is engaged in the transportation of passengers and cargoes, the preparation of in-flight food catering, the maintenance of aircraft and land equipment, as well as the fueling business. The Travel Planning and Marketing segment is involved in the planning and sale of travel packages. The Card and Leasing segment is engaged in the provision of finance, cards and leasing services. The Others segment is involved in businesses related to hotels, resorts, logistics, wholesale, retail, real estate, printing, construction, manpower dispatch, as well as information and communication. The Company has numerous global operating locations. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. * * * As reported in the Troubled Company Reporter-Asia Pacific on February 11, 2009, Moody's Investors Service changed the outlook on the Ba3 long-term debt rating and issuer rating of Japan Airlines International Co. Ltd. to negative from positive. The outlook change reflects Moody's view that JALI's profitability is likely to remain pressured amid the recent sharp decline in airline passenger demand. Japan Airlines continues to carry Standard & Poor's Ratings 'B+' LT Foreign & Local Issuer Credit. The outlook is positive. JAPAN AIRLINES: Hires Merrill Lynch as Adviser ---------------------------------------------- Japan Airlines Corp. hired Merrill Lynch Japan Securities Co. to advise on its search for partners and investments, Bloomberg News reports citing two people familiar with the situation. Japan Airlines appointed Bank of America Corp.'s Merrill Lynch to evaluate the carrier's value and select a partner who can help replenish its capital, Bloomberg relates citing the people, who asked not to be identified because they aren't authorized to discuss the deal publicly. As reported by the TCR on Sept. 15, 2009, AMR Corp. and Delta Air are reportedly in separate talks with Japan Airlines to forge an expansive joint venture with the carrier. The Wall Street Journal said that American Airlines would also consider taking a minority stake in JAL, although any such investment would likely be capped at hundreds of millions of dollars. Delta is also negotiating to acquire a minority stake of around $300 million in JAL. The Journal relates that Delta wants JAL to join its rival SkyTeam alliance. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan- based holding company that is active in five business segments through its 225 subsidiaries and 82 associated companies. The Air Transportation segment is engaged in the operation of passenger and cargo planes. The Air Transportation-Related segment is engaged in the transportation of passengers and cargoes, the preparation of in-flight food catering, the maintenance of aircraft and land equipment, as well as the fueling business. The Travel Planning and Marketing segment is involved in the planning and sale of travel packages. The Card and Leasing segment is engaged in the provision of finance, cards and leasing services. The Others segment is involved in businesses related to hotels, resorts, logistics, wholesale, retail, real estate, printing, construction, manpower dispatch, as well as information and communication. The Company has numerous global operating locations. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. * * * As reported in the Troubled Company Reporter-Asia Pacific on February 11, 2009, Moody's Investors Service changed the outlook on the Ba3 long-term debt rating and issuer rating of Japan Airlines International Co. Ltd. to negative from positive. The outlook change reflects Moody's view that JALI's profitability is likely to remain pressured amid the recent sharp decline in airline passenger demand. Japan Airlines continues to carry Standard & Poor's Ratings 'B+' LT Foreign & Local Issuer Credit. The outlook is positive. JAPAN AIRLINES: S&P Puts 'B+' Rating on CreditWatch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services placed its 'B+' long-term corporate credit and senior unsecured debt ratings on Japan Airlines Corp. and its fully owned subsidiary, Japan Airlines International Co. Ltd., on CreditWatch with negative implications. The CreditWatch placement reflects the prevailing uncertainty over the company's short-term financing amid the continuingly challenging business environment, as well as its recent poor business performance. In addition, the degree of support the company can expect to receive from the new Democratic Party of Japan's administration needs to be carefully examined. As such, Standard & Poor's will closely monitor developments in this regard. The global economic downturn, coupled with the emergence of swine flu, has negatively affected passenger demand and led to deterioration in the business environment and downward pressure on the company's business performance. Under such circumstances, JAL has decided to implement significant structural reforms, including a reduction in the number of routes it offers and the reform of the current company pension system. Furthermore, JAL is considering strengthening its ties with overseas carriers. However, the company is currently not in a position to easily accomplish an early recovery in its business performance. Also, concerns over short-term financing have not yet been eliminated. As such, Standard & Poor's will reflect the impact of any change in stance towards JAL from its financial institutions over the coming months in the ratings on the company. In addition, as the DPJ intends to reexamine the policy and approach taken by the former Liberal Democratic Party's administration in relation to government support of companies, Standard & Poor's believes that the future framework and direction of such support, which has in the past underpinned the ratings on JAL, requires careful examination. Standard & Poor's will resolve the CreditWatch placement upon scrutinizing the: -- Feasibility of structural reforms and prospects for a recovery in the company's business performance; -- Supportive stance of financial institutions; and -- Future direction of government support. S&P will also examine JAL's medium-term management plan and the impact on the company of the prevailing business and political environment. The ratings on JAL will likely be placed under increasing downward pressure if prospects for an early recovery in its business performance grow dim and concerns increase over weakening support from the government and financial institutions. While a potential downgrade may not be restricted to one notch, the rating may be affirmed if prospects for a recovery in performance improve or if JAL can expect continued support from the government. Ratings List Ratings Affirmed; CreditWatch/Outlook Action Japan Airlines Corp. To From -- ---- Corporate Credit Rating B+/Watch Neg/-- B+/Negative/-- Senior Unsecured B+/Watch Neg B+ Japan Airlines International Co. Ltd. To From -- ---- Corporate Credit Rating B+/Watch Neg/NR B+/Negative/NR Senior Unsecured B+/Watch Neg B+ JAPAN AIRLINES: Transport Minister to Hear Recovery Plan This Week ------------------------------------------------------------------ Kyodo News, citing sources familiar with the matter, reports that Japan's Transport Minister Seiji Maehara will summon Japan Airlines Corp. President Haruka Nishimatsu to his ministry on September 24 to hear about the business recovery plan being mapped out by the struggling airline. Kyodo said Mr. Maehara earlier declared that he will scrap an expert panel in the ministry created by the previous administration led by the Liberal Democratic Party to check the company's business improvement plan so that he can get involved with the reconstruction of the loss-making airline. As reported in the Troubled Company Reporter-Asia Pacific on September 15, 2009, Kyodo News said Japan Airlines Corp. will cut its flight-related sales by 20% and operating expenses by 30% from fiscal 2008 levels over the three years through March 2012 as part of its restructuring efforts. The carrier also plans to increase planned personnel cuts by about 1,000 to a total of around 6,000. Japan Airlines intends to terminate or reduce the number of flights, including some on 24 international routes such as those connecting with China, and increase code-sharing arrangements with foreign airlines for unprofitable international routes. JAL, which plans to scale down its operations through such steps as streamlining its international and domestic routes, on September 15 conveyed its improvement plan today to a panel of the Land, Infrastructure, Transport and Tourism Ministry tasked with monitoring its business turnaround, according to Kyodo. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan- based holding company that is active in five business segments through its 225 subsidiaries and 82 associated companies. The Air Transportation segment is engaged in the operation of passenger and cargo planes. The Air Transportation-Related segment is engaged in the transportation of passengers and cargoes, the preparation of in-flight food catering, the maintenance of aircraft and land equipment, as well as the fueling business. The Travel Planning and Marketing segment is involved in the planning and sale of travel packages. The Card and Leasing segment is engaged in the provision of finance, cards and leasing services. The Others segment is involved in businesses related to hotels, resorts, logistics, wholesale, retail, real estate, printing, construction, manpower dispatch, as well as information and communication. The Company has numerous global operating locations. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. * * * As reported in the Troubled Company Reporter-Asia Pacific on February 11, 2009, Moody's Investors Service changed the outlook on the Ba3 long-term debt rating and issuer rating of Japan Airlines International Co. Ltd. to negative from positive. The outlook change reflects Moody's view that JALI's profitability is likely to remain pressured amid the recent sharp decline in airline passenger demand. Japan Airlines continues to carry Standard & Poor's Ratings 'B+' LT Foreign & Local Issuer Credit. The outlook is positive. JLOC 41: S&P Keeps CreditWatch Negative on Various Note Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services kept on CreditWatch with negative implications its ratings on the class A to D-1 and class D-3 floating-rate notes issued under the JLOC 41 LLC transaction. The ratings on the seven classes had been placed on CreditWatch negative on June 23, 2009. At the same time, Standard & Poor's affirmed its 'B' rating on the class D-2 notes issued under the same transaction. The class A, B, C-1, C-3, D-1, and D-3 notes are backed by two loans (property sales-type loans) whose sponsor is under corporate reorganization proceedings. On June 23, 2009, S&P placed the ratings on the aforementioned six classes on CreditWatch negative to reflect what S&P believed to be uncertainty over the sale of the collateral properties backing the two loans. S&P kept the ratings on the same six classes on CreditWatch negative because S&P has yet to finalize its assessment of the sales prospects of the properties that ultimately back the aforementioned two loans. Meanwhile, the underlying loan that backed the class C-2 notes (property sales-type loan representing about 22% of the initial issuance amount of the notes) had defaulted, and collection procedures relating to the defaulted loan are in progress, in accordance with the transaction's servicing agreement. Accordingly, on June 23, 2009, S&P had also placed the rating on class C-2 on CreditWatch negative, based on S&P's view of growing uncertainty over the recovery prospects of the collateral properties that ultimately backed the defaulted loan. S&P intends to review its rating on the class C-2 notes after assessing progress in the collection process, as well as the recovery prospects, of the related collateral properties. The notes issued under this transaction were originally secured by three loans extended to three obligors. The loans were initially backed by 31 real estate trust certificates or real estate properties. The transaction was arranged by Morgan Stanley Japan Securities Co. Ltd, and ORIX Asset Management & Loan Services Corp. is the transaction servicer. Ratings Kept On Creditwatch Negative JLOC 41 LLC. JPY23.36 billion floating-rate notes due February 2015 Class Rating Initial Issue Amount Coupon Type ----- ------ -------------------- ----------- A AAA/Watch Neg JPY15.40 bil. Floating rate B AA/Watch Neg JPY2.70 bil. Floating rate C-1 A/Watch Neg JPY1.07 bil. Floating rate C-2 A/Watch Neg JPY0.86 bil. Floating rate C-3 A/Watch Neg JPY0.99 bil. Floating rate D-1 BBB/Watch Neg JPY0.78 bil. Floating rate D-3 BBB/Watch Neg JPY0.87 bil. Floating rate Rating Affirmed Class Rating Initial Issue Amount Coupon Type ----- ------ -------------------- ----------- D-2 B JPY0.69 bil. Floating rate JLOC XXXIII: S&P Downgrades Ratings on Various Classes of Notes --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on classes C and D of the JLOC XXXIII Trust Certificate transaction and removed the ratings from CreditWatch with negative implications, where they had been placed on July 6, 2009. At the same time, Standard & Poor's affirmed its ratings on the class A, B, and X trust certificates issued under the same transaction. Standard & Poor's reviewed the repayment prospects of about 100 loans (total outstanding loan balance: about JPY660 billion) backing rated CMBS transactions that are due to mature by the end of August 2010. Following the review, on July 6, 2009, S&P placed the ratings on 93 tranches of 23 CMBS transactions, including those on classes C and D of JLOC XXXIII, on CreditWatch with negative implications. In the transaction, there remain one loan and three specified bonds; the single remaining loan and one of the three remaining specified bonds (representing a combined 21% or so of the total initial issuance amount of the trust certificates) are due to mature by the end of August 2010 and are "loans considered to be in default," as stated in the aforementioned report. Accordingly, Standard & Poor's has reviewed the property management reports for the related collateral properties and met with the asset manager. Meanwhile, the other two remaining underlying specified bonds (representing a combined 20% or so of the total initial issuance amount of the trust certificates) had defaulted in December 2008 and August 2009. The downgrades are based on these factors: With respect to the "loans considered to be in default" (one loan and one specified bond), 1) principal repayments have not met Standard & Poor's expectations due to a delay in the sale of collateral properties; 2) uncertainty appears to be growing over repayment by their respective maturity dates; and 3) there appears to be mounting uncertainty over the likelihood of collections from the properties that back those "loans considered to be in default." With respect to the other remaining two specified bonds that had defaulted, it is S&P's view that uncertainty is mounting over the recovery prospects of the properties. At this point, the affirmations of the ratings on the class A and B trust certificates reflect S&P's view on the prospects of collections from the underlying properties, as well as credit support provided by the subordinate tranches for the upper-level tranches through the transaction's senior/subordinate structure. Standard & Poor's intends to continue to monitor progress in the repayment of the aforementioned "loans considered to be in default" and the performance as well as recovery prospects of the related collateral properties, based on the possibility that the loans may indeed not be repaid. In addition, with regard to the two abovementioned specified bonds that had defaulted, S&P will monitor the collection progress, as well as the recovery prospects, of the related collateral properties. S&P is considering amending the rating methodology for interest- only certificates, which include class X of this transaction. If the proposal is adopted, it could affect the rating on class X. At this point, however, Standard & Poor's has affirmed its rating on class X. The certificates were originally secured by five nonrecourse loans and five TMK (specified) bonds. The loans and specified bonds were initially backed by a total of 110 real estate properties and real estate beneficial interests owned by nine obligors. This commercial mortgage-backed securities transaction was arranged by Morgan Stanley Japan Securities Co. Ltd., and ORIX Asset Management & Loan Services Corp. is the transaction servicer. Ratings Lowered, Off Creditwatch Negative JLOC XXXIII JPY67.8 billion trust certificates due July 2013 issued on Nov. 16, 2006 Class To From Initial Issue Amount Coupon Type ----- -- ---- -------------------- ----------- C BB+ A/Watch Neg JPY8.0 bil. Floating rate D CCC B-/Watch Neg JPY7.5 bil. Floating rate Ratings Affirmed Class Rating Initial Issue Amount Coupon Type ----- ------ -------------------- ----------- A AAA JPY43.7 bil. Floating rate B AA JPY8.6 bil. Floating rate X AAA JPY67.8 bil.* * Initial notional principal MLOX4 CERTIFICATES: S&P Downgrades Ratings on Various Classes ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class C and D trust certificates issued under the MLOX4 transaction and kept its ratings on both classes on CreditWatch with negative implications, where they had been placed on June 30, 2009. At the same time, Standard & Poor's placed on CreditWatch negative its ratings on classes A and B, and affirmed its 'AAA' rating on class X. On June 30, 2009, S&P placed the ratings on classes C and D on CreditWatch with negative implications to reflect what S&P believed to be uncertainty over the sale of the collateral properties backing one of the transaction's underlying loans (property sales-type loan) whose sponsor is under corporate reorganization proceedings. Although sales of the properties that back the aforementioned underlying loan (representing about 29.5% of the initial issuance amount of the trust certificates) are underway, the sales have fallen behind schedule. In addition, S&P holds the view that uncertainty continues to mount over the sale prices of the collateral properties. Accordingly, S&P is lowering its assumptions with respect to the recovery amounts from the collateral properties. The downgrades of classes C and D reflect lower recovery assumptions for the properties. Meanwhile, regarding the residential-cum-commercial properties (high-quality, limited-stay apartments) that ultimately back another two of the transaction's underlying loans (representing a combined 65.8% or so of the total issuance amount of the trust certificates), S&P sees a risk that the properties' cash flows may not be maintained at current levels, which in turn, would cause property values to decline. S&P intends to review its ratings on classes A to D after considering progress in the repayment of the aforementioned two loans, the asset manager's management policy, as well as the cash flows from the collateral properties and the property values. S&P is considering amending the rating methodology for interest- only certificates, which include class X of this transaction. If the proposal is adopted, it could affect the rating on class X. At this point, however, Standard & Poor's has affirmed its rating on class X. MLOX4 is a multi-borrower CMBS transaction. The trust certificates were initially secured by four loans extended to four obligors. The loans were originally backed by 22 real estate trust certificates held by the four borrowers. The transaction was arranged by Merrill Lynch Japan Securities Co. Ltd., and ORIX Asset Management & Loan Services is the transaction servicer. Ratings Lowered, Kept On Creditwatch Negative MLOX4 JPY42.6 billion Trust certificates due May 2014 Class To From Initial issue amount Coupon type ----- -- ---- -------------------- ----------- C BBB-/Watch Neg A/Watch Neg JPY6.7 bil. Floating Rate D BB-/Watch Neg BBB/Watch Neg JPY4.2 bil. Floating rate Ratings Placed On Creditwatch Negative Class To From Initial issue amount Coupon type ----- -- ---- -------------------- ----------- A AAA/Watch Neg AAA JPY25.0 bil. Floating rate B AA/Watch Neg AA JPY6.7 bil. Floating rate Rating Affirmed Class Rating Initial issue amount ----- ------ -------------------- X* AAA JPY42.6 bil. (Initial notional principal) * Interest only SANYO ELECTRIC: Goldman to Sell US$1.4BB Stake to Panasonic ----------------------------------------------------------- Bloomberg News reports that Goldman Sachs Group Inc. has agreed to sell a JPY126.7 billion (US$1.4 billion) stake in Sanyo Electric Co. to Panasonic Corp, reaping JPY59 billion in investment gains. AFP relates Goldman said its Oceans Holdings Co. investment fund had signed an agreement to sell slightly more than half of its shares in Sanyo for JPY131 each as part of Panasonic's takeover of the struggling electronics maker. Citing Goldman in a September 18 statement, Bloomberg discloses that the New York-based company will sell 96,681,355 preferred shares convertible into common stock, representing 54% of the bank's holdings in Sanyo. According to Bloomberg, Goldman last December agreed to sell the preferred stock at JPY1,310 each, or JPY131 per common stock, or 87% higher than the purchase price. Goldman, which converted the remaining stake into 818.9 million common shares, may sell its remaining holdings after evaluating investments, market conditions and other factors, Bloomberg notes citing the statement. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 22, 2008, Sanyo Electric Co.'s three major shareholders agreed to sell their stakes in the company to Panasonic Corp. Panasonic will buy 70% stake in Sanyo from Goldman Sachs Group Inc., Sumitomo Mitsui Banking Corp. and Daiwa Securities SMBC Co. for JPY131 (US$1.48) a share. The deal values Sanyo at about JPY800 billion (US$9.01 billion). The Wall Street Journal reported on August 31 that Panasonic said it is still awaiting approval from antitrust regulators in four countries on its tender offer to acquire Sanyo Electric and will report by late October on the progress of the deal. About Sanyo Headquartered in Osaka, Japan, Sanyo Electric Co. Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter-Asia Pacific on November 14, 2008, Fitch Ratings placed Sanyo Electric Co. Ltd.'s 'BB+' Long-term foreign and local currency IDRs and senior unsecured ratings on Rating Watch Positive. * S&P Puts Ratings on 60 Corporate CDOs on CreditWatch Negative --------------------------------------------------------------- Standard & Poor's Ratings Services placed 60 ratings from 40 corporate collateralized debt obligation transactions on CreditWatch with negative implications. The aggregate issuance amount of the affected tranches is US$4.57 billion. S&P took these CreditWatch actions in connection with its update of the criteria and assumptions S&P uses to rate corporate CDO transactions. S&P expects this update to result in downgrades of many rated CDOs that are backed by, or reference, corporate debt. The CreditWatch placements affect nearly all of S&P's ratings on Asia-Pacific (ex-Japan) corporate CDO transactions, including synthetic collateralized loan obligations, synthetic CDOs of corporate CDOs, synthetic corporate CDOs, and other CDO transactions collateralized by or referencing corporate credits. Additionally, S&P has not placed on CreditWatch negative ratings from CDO tranches that S&P expects will be paid in full on or before Dec. 31, 2009. The CreditWatch placements affect CDO transactions monitored in Asia-Pacific (ex-Japan). S&P will publish separate releases and rating action lists for transactions monitored in Europe, North America, and Japan. The tables at the end of this article provide a summary breakdown of the Asia-Pacific (ex-Japan) CDO ratings placed on CreditWatch by year of transaction, origination, and current rating. S&P's process for reviewing cash flow and hybrid CDOs, which rely on excess spread for credit support and require cash flow analysis when assessing the ratings assigned, will differ from that for synthetic CDO transactions, which S&P monitor through its monthly synthetic rated overcollateralization ratio review. Reviews Of Synthetic CDO Transactions Through S&P's SROC Process For synthetic CDO transactions that S&P monitors as part of S&P's monthly SROC review, S&P does not anticipate extensive cash flow analysis to resolve the CreditWatch placements. Instead, S&P will focus on the revised SROC ratios incorporating the updated criteria. A rating committee will determine the final rating decisions. Once S&P has completed its review of synthetic CDO transactions, S&P will publish a consolidated press release for the affected transactions. S&P expects to complete its reviews within the next 90 days. Until that time, S&P will not include corporate CDO transactions in its monthly SROC report, although S&P does intend to continue publishing the SROC report for other (non-corporate) synthetic CDO transactions, including synthetic CDOs of asset- backed securities. S&P's reviews of the affected synthetic CDOs will consider both the updated criteria and also any credit deterioration the transactions have experienced since their last review. After S&P completes its reviews, the agency expects to resume publishing the monthly Global SROC Report including SROC ratios for synthetic corporate CDO transactions under the updated criteria. Summary of Asia Pacific (ex-Japan) Corporate CDO Ratings Placed On CreditWatch Negative Number Of Tranches With Ratings Placed On CreditWatch Negative Public AAA AA A BBB BB B CCC Total ------ --- -- - --- -- - --- ----- Vintage 2003 2 2 2004 1 1 2 2005 3 4 1 2 10 2006 4 2 1 3 4 3 17 2007 3 3 3 9 6 2 26 2008 1 1 1 3 Total 13 9 4 13 13 3 5 60 Issuance Amount Of Tranches With Ratings Placed On CreditWatch Negative Total Public AAA AA A BBB BB B CCC (Mil. US$) ------ --- -- - --- -- - --- ---------- Vintage 2003 130.00 130.00 2004 27.96 10.78 38.74 2005 80.29 128.71 40.00 230.62 479.63 2006 1270.57 61.25 22.50 73.07 106.47 96.91 1630.78 2007 1496.59 174.27 48.20 162.41 185.98 67.88 2135.33 2008 109.88 20.00 25.00 154.88 Total 3087.34 364.23 70.70 255.48 385.41 78.67 327.5 4569.35 ==================== N E W Z E A L A N D ==================== BLUE CHIP: Court Orders Financial Advisor to Pay Widow NZ$250,000 ----------------------------------------------------------------- The High Court at Napier has ordered a financial adviser to pay NZ$250,000 to an elderly widow who put her money into failed Blue Chip property investment company. Beryl Joyce Breeze, 75, was awarded NZ$204,465 damages plus NZ$54,361 costs and disbursements after Justice Simon France found VPFS Financial Planner Ltd "failed to meet the standards of a reasonable financial adviser" in placing the money, according to The New Zealand Herald. According to the Herald, Justice Simon France said VPFS had recommended Mrs. Breeze to invest in a Blue Chip-related scheme and had been negligent or alternatively had not used reasonable care and skill in advising Mrs. Breeze. VPFS did not defend the action. The report notes Justice France said other parties, including legal advisers, were originally also involved, but they had settled. The Herald says the court's decision could become a "benchmark" for other claims related to the NZ$80 million failure of the Blue Chip property investment company last year. According the Herald, Myles Wealth Management director Craig Myles suggested that the 3,000 investors who lost money through Blue Chip could compare the detail of their case with that of the Napier case. About Blue Chip NZ Blue Chip New Zealand Ltd. is a financial services company with offices throughout New Zealand. It is a subsidiary of Blue Chip Financial Solutions Limited, now known as Northern Crest Investments. Northern Crest operates in two divisions: financial services and leasing services. The financial services division is engaged in the provision of financial structuring services and investment product to a variety of clients. The leasing activities division is engaged in rental of residential property. * * * As reported by the Troubled Company Reporter-Asia Pacific on April 15, 2008, Blue Chip New Zealand Ltd. is in voluntary liquidation, joining 20 other Blue Chip companies that are now being wound up. Blue Chip owes its creditors NZ$84.3 million. * NEW ZEALAND: Current Account Deficit Shrinks to NZ$612MM in June ------------------------------------------------------------------ New Zealand's seasonally adjusted current account deficit shrunks to NZ$612 million in the June 2009 quarter, NZ$1,508 million smaller than the March 2009 quarter deficit of NZ$2,120 million, the country's statistics agency said. The smaller deficit was due to a fall in income from foreign investment in New Zealand. Imports of services also fell, while the surplus on goods remained unchanged. Income from foreign investment in New Zealand, which is not seasonally adjusted, fell by NZ$1,186 million in the June 2009 quarter, to NZ$2,068 million. This is its lowest level since the March 2001 quarter, according to Statistics New Zealand. "The fall was driven by lower profits earned this quarter by foreign-owned New Zealand enterprises, particularly in the banking sector," said Government and International Accounts Manager John Morris. The fall was influenced by a large company tax transaction during the quarter. In addition to the fall in profits, interest paid to foreign investors on New Zealand's overseas debt fell by NZ$214 million. Meanwhile, New Zealand investors' earnings from abroad remained stable. Imports of services were driven down by lower freight costs and less spending by New Zealanders on overseas trips. The seasonally adjusted goods balance was a surplus of NZ$822 million in the June 2009 quarter, unchanged from the March 2009 quarter. Exports of goods fell NZ$771 million, mainly due to falling prices (especially for dairy products), which more than offset an increase in export volumes. Goods imports fell NZ$772 million as both prices and volumes of imported goods decreased. In actual dollar terms, the current account balance was a surplus of NZ$124 million in the June 2009 quarter. The most recent surplus was in the March 2003 quarter � June quarter surpluses are unusual. If the effect of the company tax transaction affecting investment income were removed, there would be a deficit of NZ$537 million. For the year ended June 2009, the current account deficit was NZ$10,614 million (5.9 percent of GDP), compared with NZ$14,569 million (8.1 percent of GDP) for the year ended March 2009. This is the smallest year ended deficit as a percentage of GDP since September 2004. The main causes of the NZ$3,955 million smaller deficit from the March 2009 year were a NZ$2,008 million reduction in the investment income deficit, and a NZ$1,864 million turnaround in the goods balance from a deficit to a surplus. The lower income deficit was mainly caused by lower profits earned by foreign investors from their New Zealand subsidiaries. The main cause of the goods turnaround was a NZ$2,260 million fall in imports of goods, driven by lower import volumes. At June 30, 2009, New Zealand's liabilities exceeded its assets by NZ$171.6 billion. This net debtor position is 95.2 percent of GDP, down 1.1 percent from NZ$173.5 billion (96.4 percent of GDP) at 31 March 2009. In dollar terms, this is the first decrease since the March 2006 quarter. Net changes in the valuation of New Zealand's assets and liabilities reduced the net debtor position by NZ$2.5 billion, but were partly offset by a NZ$0.6 billion net inflow of investment abroad, which increased liabilities. The main valuation effects were caused by the appreciation of the New Zealand dollar and rising sharemarkets abroad. ===================== P H I L I P P I N E S ===================== POWER SECTOR: Moody's Assigns 'Ba3' Corporate Family Rating ----------------------------------------------------------- Moody's Investors Services has assigned a Ba3 corporate family rating to Power Sector Assets & Liabilities Management Corporation. Moody's has also affirmed PSALM's Ba3 senior unsecured bond rating. The outlook for the ratings is stable. "As a Government Related Issuer, PSALM's Ba3 corporate family rating reflects its baseline credit assessment of 13, which maps to Moody's global scale of Ba3, and strong support from the Philippine Government (Ba3/Stable) under the Joint Default Analysis approach," says Jennifer Wong, a Moody's AVP/Analyst. "Moody's considers PSALM's standalone credit profile to be closely linked to the government's credit quality in light of its distinct policy role -- as mandated by law to restructure and reform the Philippine power sector into a competitive and market-driven sector -- its 100% ownership by the Philippine Government, as well as the government's intention to assume any remaining assets and liabilities at the end of its 25-year corporate life," says Ms. Wong. "Furthermore, the government views PSALM as an extension of itself as the majority of debts issued by PSALM are unconditionally and irrevocably guaranteed by the government. As such, a debt default by PSALM would trigger a cross-default on government debt as stated in the government's debt covenants," adds Ms. Wong. "At the same time, its standalone credit profile incorporates uncertainties surrounding power sector reform as well as cash flow volatility, as driven by the privatization process," says Ms. Wong. The Ba3 bond rating also reflects the unconditional and irrevocable guarantee provided by the Philippine Government. The rating outlook is stable, in line with the sovereign outlook. Any rating upgrade or downgrade will be closely linked to any changes in the rating of the Philippine Government. The last rating action on PSALM was on 23 July 2009 when Moody's upgraded its senior unsecured bond rating to Ba3 from B1, in line with the sovereign upgrade. Power Sector Asset & Liabilities Corporation, wholly-owned and controlled by the Philippine Government, was established in 2001 to take ownership, manage, privatize and dispose of all generation related assets, liabilities, contracts with Independent Power Producers, real estate and other disposable assets of the National Power Corporation, including National Transmission Corporation. PSALM has a corporate life of 25 years. Any remaining assets and liabilities after this period will be assumed by the government. ================= S I N G A P O R E ================= ENG CHEONG: Contributories to Hold Meeting on September 30 ---------------------------------------------------------- The contributories of Eng Cheong Peng Kee Pte Ltd will hold their meeting on September 30, 2009, at 3:00 p.m. At the meeting, the contributories will be asked to: -- receive the meeting the financial status of the company; -- approve the remuneration of the liquidators; and -- discuss other matters. The company's liquidator is: Deborah Tan Yang Sock c/o PricewaterhouseCoopers LLP 8 Cross Street #17-00 PWC Building Singapore 048424 ENRON INTERNATIONAL: Creditors' Proofs of Debt Due on October 2 --------------------------------------------------------------- Enron International Energy (Asia) Pte. Ltd., which is in creditors' voluntary liquidation, requires its creditors to file their proofs of debt by October 2, 2009, to be included in the company's dividend distribution. The company's liquidator is: Goh Thien Phong c/o PricewaterhouseCoopers LLP 8 Cross Street #17-00 PWC Building Singapore 048424 GRANDSAGE PTE: Creditors' Proofs of Debt Due on October 30 ---------------------------------------------------------- Grandsage Pte Ltd, which is in liquidation, requires its creditors to file their proofs of debt by October 30, 2009, to be included in the company's dividend distribution. The company's liquidator is: Heng Lee Seng 15 Hoe Chiang Road #12-02 Tower Fifteen Singapore 089316 K SOLUTIONS: Court Enters Wind-Up Order --------------------------------------- On September 4, 2009, the High Court of Singapore entered an order to have K Solutions Pte Ltd's operations wound up. National University of Singapore filed the petition against the company. The company's liquidators are: Wong Kian Kok Kon Yin Tong, and Aw Eng Hai c/o Foo Kon Tan Grant Thornton 47 Hill Street #05-01 SCCCI Building Singapore 179365 PETRORIG: To Auction Oil Rig Contract September 25 -------------------------------------------------- PetroRig II Pte Ltd.'s rights and interests in an oil rig construction contract will be auctioned off September 25, 2009, at 10:00 a.m. EDT. Parties who wish to participate in the auction must submit bids by September 24, 2009, at 10:00 a.m. Judge James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on September 29, 2009, at 10:00 a.m. to consider approval of the sale to the highest bidder. Headquartered in Singapore, PetroRig I Pte Ltd, PetroRig II Pte Ltd, and PetroRig III Pte Ltd are rig-owning Singapore subsidiaries of Norwegian oilfield driller PetroMENA ASA. PetroRig I Pte. Ltd. and its affiliates filed for Chapter 11 on May 17, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-13083). Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Debtors in their restructuring efforts. PetroRig I listed between $100 million and $500 million each in assets and debts. UNIVERSAL RELIANCE: Court to Hear Wind-Up Petition on Sept. 25 -------------------------------------------------------------- A petition to wind up the operations of Universal Reliance (Holdings) Pte. Ltd. will be heard before the High Court of Singapore on September 25, 2009, at 10:00 a.m. Jonathan Chow Hong Pei filed the petition against the company on July 31, 2009. The Petitioner's solicitors are: Ong & Lau 30 Robinson Road #06-01 Robinson Towers Singapore 048546 =============== X X X X X X X X =============== * BOND PRICING: For the Week September 14 to September 18, 2009 --------------------------------------------------------------- AUSTRALIA --------- Ainsworth Game 8.000% 12/31/09 AUD 0.75 AMP Group Financ 9.803% 04/01/19 NZD 0.93 Antares Energy 10.000% 10/31/13 AUD 1.90 Aurox Resources 7.000% 06/30/10 AUD 0.79 Babcock & Brown Pty 8.500% 11/17/09 NZD 22.65 Becton Property Group 9.500% 06/30/10 AUD 0.46 Bemax Resources 9.375% 07/15/14 USD 70.75 Bemax Resources 9.375% 07/15/14 USD 70.50 Bounty Industries Ltd 10.000% 06/30/10 AUD 0.03 Capral Aluminum 10.000% 03/29/12 AUD 62.00 CBD Energy Ltd 12.500% 01/29/11 AUD 0.11 China Century 12.000% 09/30/10 AUD 0.68 Djerriwarrh Inv 6.500% 09/30/09 AUD 3.86 First Australian 15.000% 01/31/12 AUD 0.50 Griffin Coal Min 9.500% 12/01/16 USD 54.00 Griffin Coal Min 9.500% 12/01/16 USD 54.00 Heemskirk Consol 8.000% 04/29/11 AUD 2.20 Insurance Austra 5.625% 12/21/26 GBP 71.50 Jpm Au Enf Nom 1 3.500% 06/30/10 USD 3.50 Jpm Au Enf Nom 2 7.000% 06/30/11 AUD 59.85 Jpm Au Enf Nom 2 7.125% 06/30/12 AUD 58.62 Macquarie Bank 6.500% 05/31/17 AUD 60.77 Minerals Corp 10.500% 09/30/09 AUD 0.84 National Cap II 5.486% 12/29/49 USD 73.03 New S Wales Trea 1.000% 09/02/19 AUD 62.75 Nylex Ltd 10.000% 12/08/09 AUD 0.84 Orchard Invest 9.000% 12/15/10 AUD 29.50 Resolute Mining 12.000% 12/31/12 AUD 0.62 Sun Resources NL 12.000% 06/30/11 AUD 0.40 Timbercorp Ltd 8.900% 12/01/10 AUD 26.10 Vero Insurance 6.150% 09/07/25 AUD 45.22 CHINA ----- China Govt Bond 4.860% 08/10/14 CNY 0.00 Jiangsu Com Hold 4.950% 11/18/13 CNY 62.23vero Jiangxi Copper 1.000% 09/22/16 CNY 71.14 Sichuan Changhon 0.800% 07/31/15 CNY 72.08 HONG KONG --------- Resparcs Funding 8.000% 12/29/49 USD 20.75 INDIA ----- Aftek Infosys 1.000% 06/25/10 USD 65.50 AKSH Optifibre 1.000% 01/29/10 USD 62.50 Gemini Commnica 6.000% 07/18/12 EUR 57.50 GHCL Ltd 1.000% 03/21/11 USD 72.66 ICICI Bank Ltd 7.250% 08/29/49 USD 74.90 JCT Ltd 2.500% 04/08/11 USD 34.50 Kei Industries 1.000% 11/30/11 USD 66.50 Pyramid Saimira 1.750% 07/04/12 USD 9.00 Sterling Biotech 0.500% 09/30/10 USD 72.51 Subex Azure 2.000% 03/09/12 USD 41.50 Wanbury Ltd 1.000% 04/23/12 EUR 69.50 JAPAN ----- Aiful Corp 5.000% 08/10/10 USD 30.50 Aiful Corp 5.000% 08/10/10 USD 30.50 Aiful Corp 6.000% 12/12/11 USD 29.96 Aiful Corp 6.000% 12/12/11 USD 32.00 CSK Corporation 0.250% 09/30/13 JPY 58.50 Fukoku Mutual 4.500% 09/28/25 EUR 64.59 Japan Airlines 3.100% 01/22/18 JPY 74.31 JPN Exp Hld/Debt 0.500% 09/17/38 JPY 58.87 Nippon Residentl 1.900% 09/13/12 JPY 68.34 Nis Group 8.060% 06/20/12 USD 45.50 Promise Co Ltd 2.060% 03/20/14 JPY 71.74 Promise Co Ltd 2.100% 04/21/14 JPY 71.25 Shinsei Bank 3.750% 02/23/16 JPY 74.25 Shinsei Bank 5.625% 12/29/49 GBP 68.00 Takefuji Corp 9.200% 04/15/11 JPY 46.62 Takefuji Corp 9.200% 04/15/11 USD 46.62 Takefuji Corp 8.000% 11/01/17 USD 13.50 Takefuji Corp 4.500% 10/22/32 JPY 58.89 MALAYSIA -------- Advance Synergy Berhad 2.000% 01/26/18 MYR 0.07 Aliran Ihsan Resources Bhd 5.000% 11/29/11 MYR 1.03 Berjaya Land Bhd 5.000% 12/30/09 MYR 3.46 Crescendo Corp B 3.750% 01/11/16 MYR 0.73 Dutaland Bhd 4.000% 04/11/13 MYR 0.78 Dutaland Bhd 4.000% 04/11/13 MYR 0.46 Eastern & Orient 8.000% 07/25/11 MYR 1.42 Huat Lai Resources 5.000% 03/28/10 MYR 0.41 Kamdar Group Bhd 3.000% 11/09/09 MYR 0.25 Kretam Holdings 1.000% 08/10/10 MYR 1.05 Kumpulan Jetson 5.000% 11/27/12 MYR 1.79 Lion Diversified 4.000% 12/17/13 MYR 0.93 Mithril Bhd 3.000% 04/05/12 MYR 0.57 Nam Fatt Corp 2.000% 06/24/11 MYR 0.20 Olympia Industri 2.800% 04/11/13 MYR 0.21 Olympia Industri 4.000% 04/11/13 MYR 0.23 Plus SPV Bhd 2.000% 03/11/19 MYR 72.94 Puncak Niaga Hld 2.500% 11/18/16 MYR 0.70 Ranhill Labuan 12.500% 10/26/11 USD 71.63 Ranhill Labuan 12.500% 10/26/11 USD 71.63 Rubberex Corp 4.000% 08/14/12 MYR 1.00 Tradewinds Corp 2.000% 02/08/12 MYR 0.70 Tradewinds Plant 3.000% 02/28/16 MYR 1.11 TRC Synergy 5.000% 01/20/12 MYR 1.40 Wah Seong Corp 3.000% 05/21/12 MYR 2.62 Wijaya Baru Glob 7.000% 09/17/12 MYR 0.35 YTL Cement Bhd 4.000% 11/10/15 MYR 1.94 NEW ZEALAND ----------- Allied Farmers 9.600% 11/15/11 NZD 42.94 Allied Nationwid 11.520% 12/29/49 NZD 41.00 BBI Ntwrks NZ Ltd 8.000% 11/30/12 NZD 0.43 Blue Star Print 9.100% 09/15/12 NZD 3.11 Capital Prop NZ 8.000% 04/15/10 NZD 13.00 Contact Energy 8.000% 05/15/14 NZD 1.03 Fidelity Capital 9.250% 07/15/13 NZD 74.32 Fletcher Buildin 7.550% 03/15/11 NZD 7.55 Fletch Build Fin 8.850% 03/15/10 NZD 8.50 Fletcher Bui 8.500% 03/15/15 NZD 9.00 Infrastr & Util 8.500% 09/15/13 NZD 9.70 Infratil Ltd 8.500% 11/15/15 NZD 11.25 Infratil Ltd 10.180% 12/29/49 NZD 53.01 Marac Finance 10.500% 07/15/13 NZD 0.80 NZ Finance Hldgs 9.750% 03/15/11 NZD 56.80 Provencocadmus 2.000% 04/15/10 NZD 0.72 South Canterbury 10.500% 06/15/11 NZD 0.88 South Canterbury 10.430% 12/15/12 NZD 0.60 St Laurence Prop 9.250% 07/15/10 NZD 72.48 St Laurence Prop 9.250% 05/15/11 NZD 50.31 Tower Capital 8.500% 04/15/14 NZD 0.99 Trustpower Ltd 8.500% 09/15/12 NZD 7.15 Trustpower Ltd 8.500% 03/15/14 NZD 7.90 Vector Ltd 7.800% 10/15/14 NZD 1.01 Vector Ltd 8.000% 12/29/49 NZD 8.00 SINGAPORE --------- Blue Ocean 11.000% 06/28/12 USD 31.93 Blue Ocean 11.000% 06/28/12 USD 32.55 Housing & Dev 5.070% 09/21/09 SGD 1.00 Sengkang Mall 8.000% 11/20/12 SGD 0.20 WBL Corporation 2.500% 06/10/14 SGD 1.93 SOUTH KOREA ----------- United Eng 1.000% 03/03/14 SGD 1.31 Wellmade Star M 9.000% 09/03/12 KRW 37.87 Woori Bank 6.208% 05/02/37 USD 73.12 SRI LANKA --------- Sri Lanka Govt 7.500% 08/15/18 LKR 73.26 Sri Lanka Govt 7.000% 10/01/23 LKR 65.98 THAILAND -------- G Steel 10.500% 10/04/10 USD 27.54 ********* 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 ***