/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/091102.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, November 2, 2009, Vol. 12, No. 216 Headlines A U S T R A L I A TIMBERCORP LIMITED: Faces Investors Class Action Suit H O N G K O N G BIG LUCK: Yee and Kit Appointed as Liquidators BEST GROUP: Court to Hear Wind-Up Petition on December 2 CORYDON TRADING: Mr Kong Chi How Appointed as Liquidator CO-PACK PRINTING: Court to Hear Wind-Up Petition on December 23 ELECTRIC ORANGE: Court to Hear Wind-Up Petition on November 25 DATUM NETWORKS: To Pay First and Final Dividend on November 9 FORTUNE TEXTILES: Wai and Fun Appointed as Liquidators GLOBAL LOGISTICS: King and Chun Appointed as Liquidators GOLD RISING: Court to Hear Wind-Up Petition on December 2 HANRAY INVESTMENTS: Court to Hear Wind-Up Petition on December 16 HING YIP: Creditors and Contributories to Meet on November 20 KENLAP PGC: Creditors' Proofs of Debt Due November 14 MERIT OCEAN: Court to Hear Wind-Up Petition on December 16 MAN KWONG: Yee and Kit Appointed as Liquidators MILCOME LIMITED: Court to Hear Wind-Up Petition on December 16 I N D I A ABS MERCANTILE: Weak Financial Profile Cues ICRA 'LBB-' Rating BHAVYA CONSTRUCTIONS: ICRA Rates INR100MM Long Term Bank Loans COLOR ROOF: Fitch Downgrades National Long-Term Rating to 'BB+' DEVU TOOLS: ICRA Assigns 'LBB' Rating to INR12.5MM LT Facilities MUKESH INDUSTRIES: ICRA Puts 'LBB' Rating on Various Bank Debts NEXT WAVE: ICRA Puts 'LBB+' Rating on Various Bank Facilities TATA CHEMICALS: To Close Manufacturing Plant in Netherlands WAVE SILVER: ICRA Assigns 'LBB' Rating on Proposed LT Loans I N D O N E S I A SEMEN GRESIK: Third Qtr Net Profit Up 34.4% to IDR2.40 Trillion J A P A N CSC SERIES: Fitch Downgrades Ratings on Eight Classes of Bonds EIRLES TWO: S&P Downgrades Ratings on Three Japanese Tranches JLOC 39: Fitch Downgrades Ratings on All Classes of Notes MAZDA MOTOR: Posts 2009 H1 Net Loss of JPY20.8 Billion MITSUBISHI MOTORS: Swings to JPY49.2BB Loss for First Half 2009 NIPPON RESIDENTIAL: Moody's Upgrades Issuer Ratings to 'B2' K O R E A GENERAL MOTORS: Court Bans TagAZ Korea from Copying Sedan Models N E W Z E A L A N D SOUTH CANTERBURY: Secures NZ$75-Mln Loan from Torchlight Credit T A I W A N ASUSTEK COMPUTER: Posts NT$6.49BB Net Profit in Q3 T H A I L A N D CIMB THAI: Fitch Assigns Individual Rating at 'D' * Asia Recovering Fast, but Faces a "New World," IMF Says - - - - - ================= A U S T R A L I A ================= TIMBERCORP LIMITED: Faces Investors Class Action Suit ----------------------------------------------------- The Sydney Morning Herald reports that grower investors in Timbercorp Ltd. have launched a class action against the company, its responsible entity and three directors. Law firm Macpherson + Kelley Lawyers and principal Ron Willemsen are handling the class action, the report says. According to the report, more than 2,000 investors representing $200 million of Timbercorp related investments filed a statement of claim with the Victorian Supreme Court, alleging: -- conflicts of interest; -- breaches of directors' duties; -- misleading or deceptive conduct, including pretending to investors the company was stable and viable in order to extract more money; and -- other breaches of the Corporations Act. The Herald relates that if investors win the class action, they will plunder Timbercorp's professional indemnity insurance and its directors' and officers' insurance coverage. 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. ================ H O N G K O N G ================ BIG LUCK: Yee and Kit Appointed as Liquidators ---------------------------------------------- Yu Tak Yee Beryl and Choi Tze Kit Sammy on August 12, 2009, were appointed as liquidators of Big Luck Limited. BEST GROUP: Court to Hear Wind-Up Petition on December 2 -------------------------------------------------------- A petition to wind up the operations of Best Group International Limited will be heard before the High Court of Hong Kong on December 2, 2009, at 9:30 a.m. The Petitioner's solicitors are: Ho and Wong Rooms 1408-1411, 14/F China Merchants Tower Shun Tak Centre 168-200 Connaught Road Central, Hong Kong CORYDON TRADING: Mr Kong Chi How Appointed as Liquidator -------------------------------------------------------- Kong Chi How on February 10, 2009, was appointed as liquidator of Corydon Trading Limited. The Liquidator can be reached at: Kong Chi How Wing On Centre 111, 25/F Connaught Road Central, Hong Kong CO-PACK PRINTING: Court to Hear Wind-Up Petition on December 23 --------------------------------------------------------------- A petition to wind up the operations of Co-Pack Printing Products Limited will be heard before the High Court of Hong Kong on December 23, 2009, at 9:30 a.m. The Petitioner's solicitors are: Rowland Chow, Chan & Co Malaysia Building, 21st Floor No. 50 Gloucester Road Wanchai, Hong Kong ELECTRIC ORANGE: Court to Hear Wind-Up Petition on November 25 -------------------------------------------------------------- A petition to wind up the operations of Electric Orange Limited will be heard before the High Court of Hong Kong on November 25, 2009, at 9:30 a.m. DATUM NETWORKS: To Pay First and Final Dividend on November 9 ------------------------------------------------------------- Datum Networks Corp. Limited, which is in creditors' voluntary liquidation, will pay the first and final dividend to its creditors on November 9, 2009. The company will pay 100% to its preferential creditors while 50% to its unsecured creditors. The company's liquidator is: Chen Yung Ngai Kenneth Caroline Centre, 29/F Lee Gardens Two 28 Yun Ping Road Hong Kong FORTUNE TEXTILES: Wai and Fun Appointed as Liquidators ------------------------------------------------------ Li Man Wai and Tsang Lai Fun on October 20, 2009, were appointed as liquidators of Fortune Textiles Limited. The Liquidators can be reached at: Li Man Wai Tsang Lai Fun Raymond Li & Co., CPA Tai Yau Building, Room 1001, 10th Floor Wanchai, Hong Kong GLOBAL LOGISTICS: King and Chun Appointed as Liquidators -------------------------------------------------------- Lau Wu Kwai King Lauren and Yuen Tsz Chun Frank on October 12, 2009, were appointed as liquidators of Global Logistics Management Limited. The Liquidators can be reached at: Lau Wu Kwai King Lauren Frank Yuen Tsz Chun Ho lee Commercial Building, 5th Floor 38-44 D'Aguilar Street Central, Hong Kong GOLD RISING: Court to Hear Wind-Up Petition on December 2 --------------------------------------------------------- A petition to wind up the operations of Gold Rising Foods Company Limited will be heard before the High Court of Hong Kong on December 2, 2009, at 9:30 a.m. HANRAY INVESTMENTS: Court to Hear Wind-Up Petition on December 16 ----------------------------------------------------------------- A petition to wind up the operations of Hanray Investments Limited will be heard before the High Court of Hong Kong on December 16, 2009, at 9:30 a.m. The Petitioner's solicitors are: Messrs Wat & Co Chuang's Tower, 12th Floor Nos. 30-32 Connaught Road Central, Hong Kong HING YIP: Creditors and Contributories to Meet on November 20 ------------------------------------------------------------- Contributories and creditors of Hing Yip Holdings (Hong Kong) Limited will hold their first meeting on November 20, 2009, at 3:30 p.m., and 4:00 p.m., respectively at 35th Floor, One Pacific Place, 88 Queensway, in Hong Kong. At the meeting, Derek Lai Kar Yan and Darach E. Haughey, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. KENLAP PGC: Creditors' Proofs of Debt Due November 14 ----------------------------------------------------- Kenlap P.G.C manufacturer Company Limited, which is in liquidation, requires its creditors to file their proofs of debt by November 14, 2009, to be included in the company's dividend distribution. The company's liquidators are: Darach E. Haughey Lai Kar Yan (Derek) One Pacific Place, 35th Floor 88 Queensway Hong Kong MERIT OCEAN: Court to Hear Wind-Up Petition on December 16 ---------------------------------------------------------- A petition to wind up the operations of Merit Ocean Limited will be heard before the High Court of Hong Kong on December 16, 2009, at 9:30 a.m. The Petitioner's solicitors are: Tsang, Chan & Wong Wing On House, 16th Floor No. 71 Des Voeux Road Central, Hong Kong MAN KWONG: Yee and Kit Appointed as Liquidators ----------------------------------------------- Yu Tak Yee Beryl and Choi Tze Kit Sammy on September 21, 2009, were appointed as liquidators of Man Kwong Lighting Limited. MILCOME LIMITED: Court to Hear Wind-Up Petition on December 16 -------------------------------------------------------------- A petition to wind up the operations of Milcome Limited will be heard before the High Court of Hong Kong on December 16, 2009, at 9:30 a.m. The Petitioner's solicitors are: Tsang, Chan & Wong Wing On House, 16th Floor No. 71 Des Voeux Road Central, Hong Kong ========= I N D I A ========= ABS MERCANTILE: Weak Financial Profile Cues ICRA 'LBB-' Rating -------------------------------------------------------------- ICRA has assigned a long-term rating of LBB- to the INR25 million term loans and INR130 million Fund based limits of ABS Mercantile Pvt. Ltd. The assigned ratings reflects AMPL's weak financial profile due to the leveraged capital structure resulting in weak coverage indicators, dependence on a single client for majority of its business, expected near term losses resulting from the recently started auto dealership business and relatively small scale of operations of the company. Due to the low value added nature of consignment/ trading in pharmaceutical products, AMPL's bargaining power remains weak. However, ICRA draws comfort from the promoter's extensive experience in the pharmaceutical industry and the company's marketing agreements with many pharmaceutical companies. ABS Mercantile Private Limited, established in 1997 is engaged in the activity of marketing and representing Pharmaceuticals companies as their selling agent. Initially the company had started with only a single principal (Aurobindo Pharma Limited) but over the years they have been able to associate with many big bulk and API manufacturers. To ensure the timely supply and availability, AMPL has set up warehouses in Baddi (Himachal Pradesh), Roorkee (Uttarakhand) and Gurgaon (Haryana) to cater to the need of the pharmaceutical industries based in those locations. Baring a couple of the manufacturers AMPL represents most of the companies in the northern India. The company has recently diversified its business by opening an auto dealership (Tata and Fiat Auto) in Gurgaon. Recent Results In FY09, AMPL recorded a net profit of INR4.6 million on an operating income of INR255.9 million. BHAVYA CONSTRUCTIONS: ICRA Rates INR100MM Long Term Bank Loans -------------------------------------------------------------- ICRA assigns LBB rating to bank lines of Bhavya Constructions Private Limited ICRA has assigned an LBB rating to the Rs 100 million long term fund based sanctioned facilities of Bhavya Constructions Private Limited. The rating is constrained by the company's dependence on customer advances for funding its residential projects which may lead to funding shortfall in a weak demand scenario. The company's proposed commercial projects too may face funding risks as receiving advances for funding project execution in this segment is a challenge. The company is also exposed to intense competition in the small to medium ticket residential segment in Hyderabad. Going forward, the company has aggressive plans with projects of much larger size as compared to those executed in the past, execution plans for most of which are yet to be finalized. However, the rating favorably factors in the promoters' long standing experience in the Hyderabad residential real estate market and their demonstrated ability to deliver projects in a timely manner. The company's two residential projects namely Bhavya's Akhila Exotica and Bhavya's Srinivasam are in advanced stages of completion and significant proportion of bookings have been done in Akhila Exotica, which gives strong revenue visibility in FY 2010. Going forward, the company has plans to execute projects worth more than Rs 4.8 billion over the next three to four years. These include one commercial building, a mall cum multiplex and a 3.2 million sq ft residential complex. While securing entire funding for commercial projects through advances remains a challenge more so in a market with weak buyer sentiment, the funding pattern for the residential project which is proposed to include a private equity investor is under discussion stage. Hence, uncertainty with respect to the execution and financing plan for these projects exists. About Bhavya Constructions Bhavya Constructions Private Limited was incorporated in 1991 by first generation entrepreneur Mr V Ananda Prasad. The company is engaged in construction and real estate development in Hyderabad and nearby area mainly in residential segment. Before incorporating BCPL, Mr Prasad was associated with the cement industry. BCPL has executed 65 residential and commercial projects in Hyderabad, Visakhapatnam, Khammam and Tirupathi. It has constructed and delivered 54 projects in Hyderabad and Secunderabad which constitute more than 2.0 million square feet of built up area. Apart from residential and commercial projects BCPL has also executed civil works on contract basis for industrial groups in the past. The promoter has diversified into cement manufacturing through group company Bhavya Cements Limited (BCL). BCL is in the process of setting up a 1.2 million tonnes per annum cement plant in the Guntur district of Andhra Pradesh at a cost of Rs 3210 million, proposed to be operational by March 2010. BCPL shall hold an equity stake of 18% in BCL. COLOR ROOF: Fitch Downgrades National Long-Term Rating to 'BB+' --------------------------------------------------------------- Fitch Ratings has downgraded Color Roof India Limited's National Long-term rating to 'BB+(ind)' from 'BBB(ind)'. The Outlook is Stable. Fitch has also downgraded CRIL's bank loan ratings, as follow: -- Long term debt totalling INR211 million downgraded to 'BB+ (ind)' from 'BBB(ind)'; -- Cash credit facility totalling INR260 million downgraded to 'BB+(ind)' from 'BBB(ind)'; and -- Non-fund based working capital loans totalling INR490 million downgraded to 'F4(ind)' from 'F2(ind)'. The downgrades reflect the sharp deterioration in CRIL's credit metrics during FY09, as the slowdown in the construction sector resulted in lower than expected profitability. CRIL's Operating EBIDTA margins declined to 5.34% in FY09 (FY08: 10.31%) because of volatile input prices of raw materials, and on the back of fluctuations in foreign currency which resulted in inventory writedowns. In addition, CRIL also incurred capex of INR45.08m which increased its debt burden and affected leverage. CRIL's revenue mix, during FY08-FY09, consisted of coating product sales (65%-70% of total revenue), while the rest came from roofing products sales. CRIL's coating products are almost entirely exported to Europe (50% of total exports), Middle East (15% of total exports) and Central America & Africa; CRIL's roofing products are sold only in India. Fitch believes that given the weak demand scenario in Europe and the Middle East, CRIL may continue to face challenges in the these markets. In its roofing division, CRIL provides pre-sales as well as post sales services which give it an edge over some of its peers. Also, an expected improvement in India's construction sector indicates that CRIL is likely to face lesser challenges in its roofing division. Although CRIL's capacity utilization in its existing plants rose to 24% in FY08 (FY07: 19%), it dipped to 23% in FY09; most of the sales were made in H1FY09 and utilization levels dipped significantly during H2FY09. CRIL caters to the retail segment of coating and roofing products, a market that has remained relatively fragmented over the years. Fitch believes that, with the entry of steel majors into this segment, CRIL is likely to face stiff challenges which may put revenue growth and profitability under pressure. CRIL's liquidity position also remains a concern with its working capital lines currently over 95% utilized. It faced a tight liquidity situation in FY09, and in H1FY10, with an increase in average inventory processing days and average receivable days. During FY09, its gross cash cycle days increased to 305 days (FY08: 242 days). This pressure on working capital has resulted in an increase in CRIL's short-term debt during FY09. Fitch believes that CRIL may continue to face tight liquidity situation in FY10. CRIL's free cash flow has been consistently negative during FY06- FY09, given its working capital requirements and capex. Although the company does not have capex plans in the pipeline, Fitch believes that CRIL's FCF is likely to remain negative in FY10 primarily due to the working capital intensive nature of the business. However Fitch notes that the above negatives are partly offset by CRIL's nature of business, where profit margins have been relatively high due to value-added products. CRIL's roofing division also provides pre-sales and post-sales services which gives it an edge over its peers. Negative ratings triggers include less than expected improvement in CRIL's credit metrics and if working capital requirement places continuous pressure on liquidity. CRIL reported revenues of INR1.3 billion during FY09, up 6% yoy. However, CRIL witnessed a sharp decline in its Op. EBIDTA margins to 5.35% in FY09 at INR 69.56 million, versus 10.31% at INR126.16 million in FY08. DEVU TOOLS: ICRA Assigns 'LBB' Rating to INR12.5MM LT Facilities ---------------------------------------------------------------- ICRA has assigned an LBB rating to INR12.5 million long term fund based facilities of Devu Tools Private Limited. ICRA has also assigned an A4 rating to INR216.8 million short term fund based and non fund based facilities of DTPL. The rating is constrained by vulnerability resulting from the size of its operations, volatility in revenues seen in the past and high working capital intensity of the business arising from the need to store large quantities of imported raw material. The adverse capital structure and stretched liquidity position also constrains the ratings. The company is also in the midst of a fairly large expansion plan which would continue to exert pressure on the company's capital structure and debt servicing indicators. The rating however, favorably factors in the long track record of the promoters in the molds and dies business, strong operating margins at present and benefits arising from the merger of one its group company with itself from 2008-09. Devu Tools Private Limited was incorporated in 1993 as a proprietorship concern by Mr. Devaraya M. Sheregar and was later converted into a private limited company in 1999. The company is an ISO 9001:2000 certified entity. The company is engaged in the business of manufacturing molds and dies. In order the achieve economies of scale and uniformity in operations, the company amalgamated with the molds and dies manufacturing division of its group concern Gowri Moulds and Dies in FY 2009 which was catering to the domestic market only. DTPL which was mainly into exports began catering to the domestic market after the amalgamation. DTPL has its manufacturing unit and registered office at Saki Naka, Mumbai. The company is in the process of setting up a new manufacturing plant at Asangaon (Mumbai) which will be manufacturing high value molds and dies. DTPL recorded a net profit of INR26.3 million on an operating income of 308.7 million for the year ending March 31. 2009, as per provisional figures and net profit of Rs.3.2 million on an operating income of INR83.3 million for the year ending March 31, 2008, as per the audited figures. MUKESH INDUSTRIES: ICRA Puts 'LBB' Rating on Various Bank Debts ---------------------------------------------------------------- ICRA assigns LBB rating to the bank limits of Mukesh Industries Limited ICRA has assigned an LBB rating to the INR65 million term loans and the INR90 million cash credit facility of Mukesh Industries Limited. The rating is constrained by the relatively small size of the company's operations, high financial risk profile, as characterised by low margins and moderate return indicators, and the sizeable capital expenditure being undertaken by the company which exposes it to project execution risk. The rating also reflects the high competitive intensity of the industry resulting from the high level of fragmentation, the vulnerability of profitability and cash flows to the cyclicality in the textile industry and raw material price fluctuations. The rating however favorably factors in the established track record of the company in the fabric processing industry and the locational advantage arising from its proximity to raw material sources and customers. ICRA also notes that the gearing level is moderate at 1.28 times as on March 31, 2009, with unsecured loans from promoters forming a substantial portion, though the same is expected to increase in the near term on account of on-going capacity expansion of the company. Mr. Devakinandan Agarwal incorporated Mukesh Industries Limited in July 1990 as a private limited company in the name of Mukesh Fabrics Private Limited by taking over a sick unit from Bank of Baroda with fabric processing capacity of 5 million meters per annum. In 1995, it was converted to a public limited company. MIL is in the business of processing of the fabric, viz. bleaching, dyeing, printing and finishing of 100% cotton fabric. The processed fabric sold by MIL goes mainly for the manufacturing of shirts and to a limited extent, for ladies dress material. Over the years, MIL has expanded its processing capacity and its current processing capacity is 30 million meters per annum. In FY 2008-09, the company reported net profit of INR7.39 million (provisional) and an operating income of INR559.5 million (provisional). NEXT WAVE: ICRA Puts 'LBB+' Rating on Various Bank Facilities ------------------------------------------------------------- ICRA has assigned an LBB+ rating to the long term instruments (Fund Based limit-Rs 40.0 million and term loans-INR15.0 million) and an A4+ rating to the short term instrument (Non Fund Based limit-INR25.0 million) of Next Wave India. The ratings are constrained by the small scale of operations of the firm and its high client concentration. The reduction in excise duty rates on formulations in 2007-08 and 2008-09 has to an extent reduced the attractiveness of contract manufacturing in excise free zones, impacting the business prospects and profitability of NWI. Contract manufacturing could be a stable business stream but is characterized by high competitive pressures, low pricing power and low entry barriers. The rating is supported by the promoters' long experience and expertise in the pharmaceutical industry and strong relationship with Mankind Pharma Limited. Next Wave India (NWI), established in 2005 (commercial production started from August, 2006 onwards), is engaged in manufacturing of pharmaceutical formulations. The firm was started by four partners; Mr. B.R. Sikri, Mr. Prem Kumar, Mr. Anil Munjal and Mr. P.H. Subba Rao. NWI undertakes contract manufacturing mainly on P2P basis, wherein the manufacturer sources raw materials and enters into pricing arrangements for end products with the marketers and delivers the manufactured goods to the customers. NWI's manufacturing facilities are GMP certified according to WHO (World Health Organization) norms. NWI is primarily a contract manufacturer for Mankind Pharma Limited (Mankind) for their prescription segment. In the prescription segment, NWI are majorly into non beta-clam and non Cephalosporin class of drugs. These drugs are used as anti-infective, which is the highest revenue generating therapeutic segment in the domestic market followed by Gastro intestinal and cardiovascular. The firm contributes around -10% of the Mankind's requirement in this category. Recent Results In FY09, NWI recorded a net profit of INR46.5 million on an operating income of INR337.6 million. TATA CHEMICALS: To Close Manufacturing Plant in Netherlands ----------------------------------------------------------- The Times of India reports that Tata Chemicals Ltd is closing one of its three European manufacturing facilities as part of a plan to rationalize its operations. Brunner Mond Europe, owned by Tata Chemicals since February 2006, has two sites in Northwich, UK, and one in Delfzijl, Netherlands, the report says. The report relates Tata Chemicals MD R Mukundan said the closure of Brunner Mond's Netherlands unit would not affect the company's UK operations. According to the report, the Netherlands unit has been making losses even before Tata Chemicals came into the picture. Tata Chemicals tried to restructure its operations by cutting down costs but rsing energy and raw material costs deteriorated its financial health, the report states. Brunner Mond's plant used to produce soda ash and sodium bicarbonate and employed 120 people. About Tata Chemicals Headquartered Mumbai, India, Tata Chemicals Limited (BOM:500770) - - http://www.tatachemicals.com-- is a global company with interests in chemicals, crop nutrition and consumer products. The Company is engaged in producing soda ash. The Company operates in two segments: Inorganic Chemicals and Fertilisers. The Inorganic Chemicals segment comprises Industrial Chemicals and Consumer Products. The products produced by the Inorganic Chemicals segment include soda ash, sodium bicarbonate, sodium tri poly phosphate and cement. The Fertilizer segment comprises three business units: Crop Nutrition, which is a manufacturer and marketer of crop nutrients; Agri-business, which through the Tata Kisan Sansar retail network, operates farm centers offering agricultural inputs and agri solutions, and the joint venture in Morocco, which is engaged in the manufacture of phosphoric acid. During the fiscal year ended March 31, 2009, the Company acquired a 33.80% interest in JOil Singapore Pte Ltd. (JOil). * * * As reported in the Troubled Company Reporter-Asia Pacific on April 9, 2009, Moody's Investors Service downgraded to Ba1 from Baa3 the corporate family rating of Tata Chemicals Ltd. The outlook on the ratings is negative. On April 7, 2009, the TCR-AP reported that Fitch Ratings downgraded Tata Chemicals Limited's Long-term foreign currency Issuer Default Rating to 'BB+' from 'BBB-' (BBB minus) and its National Long-Term rating to 'AA(ind)' from 'AA+(ind)', following the resolution of the Rating Watch Negative classification, which was assigned on December 16, 2008. The Outlook is Negative. Simultaneously, TCL's INR16 billion bank facilities have been downgraded to 'AA(ind)'/'F1+(ind)' from 'AA+(ind)/F1+(ind)', while its INR2 billion commercial paper programme has been affirmed at 'F1+(ind)'. The CP programme forms part of TCL's fund-based working capital lines. WAVE SILVER: ICRA Assigns 'LBB' Rating on Proposed LT Loans ----------------------------------------------------------- ICRA assigns LBB rating to proposed term loans of Wave Silver Tower Private Limited ICRA has assigned an LBB rating to the INR1.02 billion proposed term loans of Wave Silver Tower Private Limited. The rating favorably factors in the established track record of WSTPL's promoters in development of commercial and retail projects and the favorable location of the project. The rating is however constrained by project implementation risks arising from early stages of project development and pending some of the approvals for the project, and funding risks as the financial closure for the project is yet to be achieved. However, established track record of the promoters in real estate development mitigates the execution risk to an extent. While assigning the rating, ICRA also took into consideration the market risk arising from low bookings achieved in the project, which is further accentuated by the slowdown in demand for commercial and retail space. Going forward, the ability of the company to raise funds at competitive rates, obtain the necessary approvals and sell the unsold space in the project would be key rating sensitivity factors. Wave Silver Tower Private Limited has been promoted by the Chadha Group which has diverse operations in various sectors like sugar, paper, liquor, real estate development, operation of multiplexes and film distribution. Over the last few years, the Chadha Group has developed retail malls in cities like Noida, Moradabad, Ghaziabad, Lucknow and Ludhiana. WSTPL is developing a commercial cum retail complex named 'Wave Silver Tower' with a saleable area of 2.70 lakh sq. ft. in Sector 18 of Noida. The construction of the project is underway and is expected to be completed by March 2012. The total estimated cost of the project is INR2.44 billion which is proposed to be funded through equity contribution of INR0.77 billion, term loans of INR1.02 billion and advances against sale of INR0.65 billion. ================= I N D O N E S I A ================= SEMEN GRESIK: Third Qtr Net Profit Up 34.4% to IDR2.40 Trillion --------------------------------------------------------------- PT Semen Gresik posted a 34.4% increase in net profit in the third quarter of this year, The Jakarta Post reports. "The company's net profit rose to IDR2.408 trillion [U$250.4 million] in the third quarter from IDR1.79 trillion a year before," Semen Gresik president director Dwi Sutjipto was quoted by the Post as saying. The company gained IDR10.4 trillion in revenue, or 18.3%, up from IDR8.798 trillion in revenue last year. Separately, Jakarta Globe reports that Semen Gresik said it was planning to boost its production capacity by 35% to 25 million tons in 2012 from the current 18.5 million tons. Semen Gresik will spend US$784 million to boost capacity and build power plants at its Tonasa and Tuban factories, the Globe notes. PT Semen Gresik Tbk (JAK:SMGR) -- http://www.semengresik.com/ina/ -- is an Indonesia-based cement company. The Company's products include ordinary Portland cement type I, II, III and V; Portland Pozzalana cement, a hydraulic cement developed by grinding clinker, gypsum and pozzolanic materials; Portland composite cement; Super Mansory cement; oil well cement class G high sulfate resistant, and special blended cement. It has seven subsidiaries which are engaged in cement manufacturing, cement packaging and distribution, limestone and clay mining, and the real estate operations. The Company's production facilities are located at Gresik and Tuban in East Java, Indarung in West Sumatera and Pangkep in South Sulawesi and have a current capacity of 17.1 million tons cement annually. * * * PT Semen Gresik Tbk continues to carry Moody's Investors Service "Ba2" senior unsecured debt rating. ========= J A P A N ========= CSC SERIES: Fitch Downgrades Ratings on Eight Classes of Bonds -------------------------------------------------------------- Fitch Ratings has downgraded eight classes of floating-rate bonds from CSC Series 1 GK, affirmed classes A-2, A-3 and X, and removed classes A to G from Rating Watch Negative, following the implementation of the recently published criteria for Japanese CMBS surveillance. Full details of the rating actions are given below: -- JPY14.55 billion* Class A-2 bonds affirmed at 'AAA'; off RWN; Outlook Stable; -- JPY3.13 billion* Class A-3 bonds affirmed at 'AAA'; off RWN; Outlook Stable; -- JPY1.70 billion* Class B-2 bonds downgraded to 'A' from 'AA'; off RWN; Outlook Negative; -- JPY1.50 billion* Class B-3 bonds downgraded to 'A' from 'AA'; off RWN; Outlook Negative; -- JPY3.20 billion* Class C-2 bonds downgraded to 'BBB' from 'A'; off RWN; Outlook Negative; -- JPY3.20 billion* Class D-2 bonds downgraded to 'B+' from 'BBB'; off RWN; Outlook Negative; -- JPY0.90 billion* Class E-2 bonds downgraded to 'B-' from 'BBB-'; off RWN; Outlook Negative; -- JPY0.60bn* Class E-3 bonds downgraded to 'B-' from 'BBB-'; off RWN; Outlook Negative; -- JPY1.65 billion* Class F-3 bonds downgraded to 'CCC' from 'BB'; off RWN; assigned a Recovery Rating of 'RR6'; -- JPY1.04 billion* Class G-3 bonds downgraded to 'CCC' from 'B'; off RWN; assigned a Recovery Rating of 'RR6'; and -- Class X bonds (interest-only) affirmed at 'AAA'; Outlook Stable. * as of October 28, 2009 Classes B, C, D, E, F, and G have been downgraded following Fitch's revisions to the values of all underlying properties. In line with the recently published criteria, the agency has revalued the underlying collateral properties in accordance with the respective loan status and time to loan maturity. Assuming dispositions under stressed market conditions, Fitch adopted values for the underlying properties that are on average 31.0% lower than its initial valuations for the purpose of this review. The recent cash flow performance of some properties has been lower than Fitch's initial expectation, and as a result, the cash flow expectations for such properties have been revised downwards. Fitch has maintained its initial cash flow assumption for other properties. Classes A-2 and A-3 have been affirmed and assigned Stable Outlooks, reflecting their low LTV and Fitch's expectation that credit enhancement level will improve as repayment from loans will be applied sequentially. Negative Outlooks have been assigned for classes B, C, D, and E, due to the continued uncertainty over the future of the Japanese commercial real estate market and the commercial real estate finance environment. Fitch has resolved the RWN status on all classes since the likelihood of additional rating actions has fallen, given the conservative property revaluations adopted in combination with the status of each loan at this time. At closing, the notes were backed by loans extended to six borrowers and ultimately secured by 72 commercial real estate properties in Japan. Two loans have been fully repaid, which brings the total number of borrowers of the loans backing the transaction to four, secured by a total of 68 properties and sales proceeds. Of these loans, two loans are currently in special servicing and the remaining loans to two borrowers are expected to mature in November 2009. Fitch has assumed these loans due to mature in November 2009 will default and will enter special servicing at that time. Fitch notes that under the bond conditions, failure to pay the whole amount by expected maturity is defined as an 'event of default'. Fitch also notes that certain transaction parties are attempting to revise the documents to remove this provision; however, Fitch believes whether an amendment was made or not, will unlikely affect the ratings of the bonds. This is because Fitch's ratings on the transaction address the timely payment of interest and ultimate payment of principal by the final maturity date of November 2012 for the Class A bonds, and the ultimate payment of interest and principal by the final maturity date for the Class B through G bonds. The rating on the interest-only Class X bonds addresses only the likelihood of receiving interest, while principal on the related classes remain outstanding. Rating Outlooks have been published for all newly issued Asia Pacific Structured Finance tranches since June 2008, and concurrently with rating actions for tranches issued prior to June 2008. Unlike a Rating Watch which notifies investors that there is a reasonable probability of a rating change in the short term as a result of a specific event, rating Outlooks indicate the likely direction of any rating change over a one- to two-year period. EIRLES TWO: S&P Downgrades Ratings on Three Japanese Tranches ------------------------------------------------------------- Standard & Poor's Ratings Services said that it had lowered its ratings on three tranches relating to three Japanese synthetic CDO transactions issued under Eirles Two Ltd. and Corsair (Jersey) No. 2 Ltd. At the same time, S&P removed the aforementioned ratings from CreditWatch with negative implications, and subsequently withdrew the ratings. The rating actions reflect S&P's view that S&P lacks adequate information to continue to provide opinions on the creditworthiness of the aforementioned three tranches, following the withdrawal of the credit ratings on the collateral securities of the related transactions. Before the withdrawals, S&P reviewed the related transactions and adjusted the ratings based on current portfolio information and updated S&P's CDO criteria. Ratings Lowered Eirles Two Ltd. L1 credit linked secured loan 2004-4 To From Issue Amount -- ---- ------------ B+ BBB/Watch Neg JPY4.0 bil. Corsair (Jersey) No. 2 Ltd. Fixed rate secured portfolio credit-linked loan series 45 To From Issue Amount -- ---- ------------ CCC B/Watch Neg JPY3.0 bil. Fixed rate secured potfolio credit-linked loan series 46 To From Issue Amount -- ---- ------------ CCC+ BB+/Watch Neg JPY3.0 bil. Ratings Withdrawn Eirles Two Ltd. L1 credit linked secured loan 2004-4 To From Issue Amount -- ---- ------------ NR B+ JPY4.0 bil. Corsair (Jersey) No. 2 Ltd. Fixed rate secured portfolio credit-linked loan series 45 To From Issue Amount -- ---- ------------ NR CCC JPY3.0 bil. Corsair (Jersey) No. 2 Ltd. Fixed rate secured portfolio credit-linked loan series 46 To From Issue Amount -- ---- ------------ NR CCC+ JPY3.0 bil. JLOC 39: Fitch Downgrades Ratings on All Classes of Notes --------------------------------------------------------- Fitch Ratings has downgraded all classes of trust beneficiary interest from JLOC 39 Trust due April 2014, and removed them from Rating Watch Negative following the implementation of recently published criteria for Japanese CMBS surveillance. Full details of the rating actions are: -- JPY21.36 billion* Class A TBIs downgraded to 'AA' from 'AAA'; off RWN; Outlook Stable; -- JPY5.4 billion* Class B TBIs downgraded to 'BBB+' from 'AA'; off RWN; Outlook Negative; -- JPY3.9 billion* Class C TBIs downgraded to 'BB' from 'A'; off RWN; Outlook Negative; and -- JPY2.2 billion* Class D TBIs downgraded to 'B-' from 'BBB'; off RWN; Outlook Negative. * as of October 28, 2009 Fitch has downgraded all classes to reflect revisions to the valuations of the collateral properties. In line with its recently published criteria, the agency has revalued the properties in accordance with the respective loan status and time to loan maturity. For the purpose of this review, the agency adopted values for the properties that are on average 35.2% lower than its initial valuations. The recent cash flow performance of some properties has been lower than Fitch's original expectations, and as a result, the cash flow expectation for these properties has been revised downwards. This includes the largest property of the portfolio (in terms of property value), which is an office building in Tokyo. Following the departure of a major tenant in March 2009, the property faces low occupancy; Fitch notes that although a new tenant has moved in for a portion of the space, the new rental contract is lower than expected. There are two liquidation-type underlying loans in the portfolio. Some properties backing these loans have been sold to date. Fitch's analysis has been revised to assume no property dispositions will occur during the remaining underlying loan term, reflecting the current state of commercial real estate market. Fitch has resolved the RWN status on all classes since the likelihood of additional rating actions has fallen, given the conservative property revaluations adopted in combination with the status of each loan. However, the agency has assigned Negative Outlooks to classes B, C and D TBIs due to the continued uncertainty about the future of the Japanese commercial real estate market and the commercial real estate finance environment, as well as the concerns regarding the concentration on the largest property. This transaction is a securitization of Tokutei Mokuteki Kaisha specified bonds and non-recourse loans issued by or extended to a total of 10 borrowers. At closing, these underlying assets were ultimately secured by 34 commercial real estate properties. To date, one underlying loan has been fully repaid and partial prepayments have occurred mainly due to the disposition of collateral properties. The transaction is currently backed by 24 commercial real estate properties. Rating Outlooks have been published for all newly issued Asia Pacific Structured Finance tranches since June 2008, and concurrently with rating actions for tranches issued prior to June 2008. Unlike a Rating Watch which notifies investors that there is a reasonable probability of a rating change in the short term as a result of a specific event, rating Outlooks indicate the likely direction of any rating change over a one- to two-year period. MAZDA MOTOR: Posts 2009 H1 Net Loss of JPY20.8 Billion ------------------------------------------------------ Mazda Motor Corp. reported a JPY20.8 billion net loss for the six months ended September 30, 2009, compared with a net profit of JPY29.5 billion a year earlier. Net Sales in the six months drop 37% from a year earlier to JPY990.3 billion from net sales of JPY1.576 trillion a year earlier. Consolidated ordinary loss was JPY29.6 billion, a decrease in profit level of JPY78.1 billion year to year. As of September 30, 2009, Mazda Motors had JPY1.81 trillion in total assets against JPY1.40 trillion in total liabilities. Equity as of September 30, 2009, decrease by JPY8.5 billion to JPY406.3 billion from the end of the prior year. A full-text copy of the Company's FY 2009 First Half Consolidated Financial Results is available at no charge at is is http://ResearchArchives.com/t/s?47dc YoY Performance in Retail Volume For the first half of FY2009, retail volume in Japan decreased by 15% year over year to 105,000 units. In North America, retail volume was down 21% to 158,000 units. In Europe, retail volume was down 31% to 123,00 units, due primarily to lower sale in Russia. In China, retail volume increased by 35% to 85,000 units mainly due to the strong sale of Mazda6 and Mazda3. In other areas, retail volume was down 23% to 106,000 units. As a result of these varying performances by market, the global retail volume was 577,000 units, down 18% from the same period of the prior fiscal year. About Mazda Motor Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor Corporation -- http://www.mazda.co.jp/-- together with its subsidiaries and associates, is primarily involved in the manufacture and distribution of automobiles. The company manufactures passenger cars and commercial vehicles. Mazda Motor distributes its products in both domestic and overseas markets. The company has 58 subsidiaries. It has overseas operations in the United States, Canada, Mexico, Germany, Belgium, France, the United Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand, Indonesia and China. The company has a global network. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 23, 2009, Standard & Poor's Ratings Services revised to negative from stable the outlook on its 'BB' long-term corporate credit rating on Mazda Motor Corp., reflecting increased pressure on the company's profitability and cash flow amid ongoing turbulence in global auto markets. At the same time, Standard & Poor's affirmed its long-term corporate credit and 'BB+' senior unsecured debt ratings on Mazda. MITSUBISHI MOTORS: Swings to JPY49.2BB Loss for First Half 2009 --------------------------------------------------------------- Mitsubishi Motors Corporation disclosed its sales and financial results for the first half of the 2009 fiscal year ending March 31, 2010. The company swung to a net loss of JPY49.2 billion for the first half ended September 30, 2009 from a net profit of JPY12.77 billion for the same period a year earlier. Mitsubishi Motors reported an ordinary loss of JPY34.2 billion, a JPY55.1 billion decrease over the ordinary profit from the same period last fiscal year. Mitsubishi Motors posted consolidated net sales of JPY573.0 billion for the first half of fiscal 2009, a decrease of JPY641.0 billion, or 53% over the same period last year. Factors behind the drop in sales include the drop in year-on-year unit sales volume and the strengthening of the Japanese yen. Mitsubishi Motors posted an operating loss of JPY32.5 billion, JPPY57.9 billion down from the operating profit of the same period last fiscal year. Despite positive factors such as concerted efforts to reduce costs and expenses, these positive factors were overcome by the greater negative factors of the drop in sales volume and the strong yen. As of September 30, 2009, Mitsibushi had JPY1.10 trillion in total assets against JPY918.0 billion in total liabilities. The company's balance sheet as of September 30, 2009, showed strained liquidity with JPY521.90 billion in total current assets available to pay JPY563.81 billion in total current liabilities. The company said financial results for the first half of fiscal year 2009 were mostly in line with the 1H fiscal year 2009 forecasts announced on April 27: net sales of JPY600 billion; operating loss of JPY35 billion; ordinary loss of JPY40 billion; net loss for the term of JPY45 billion). Sales Volume Mitsubishi Motors' global retail sales volume for the first half of fiscal year 2009 totaled 445,000 units, a decrease of 158,000 units, or 26% over the same period last year. Regional unit sales volume: * Japan: 77,000 units (a decrease of 6,000 units, or 8% year- on-year) * North America: 46,000 units (a decrease of 25,000 units, or 35% year-on-year) * Europe: 93,000 units (a decrease of 75,000 units, or 44% year-on-year) * Asia & Others: 229,000 units (a decrease of 52,000 units, or 18% year-on-year) Fiscal 2009 Full-year Forecasts Mitsubishi Motors has decided to leave its April 27-announced fiscal 2009 sales volume plan of 932,000 units and full-year financial forecasts unchanged (net sales of JPY1.5 trillion; operating profit of JPY30 billion; ordinary profit of JPY15 billion; net profit of JPY5 billion). A full-text copy of the Company's First Half 2009 Results is available at no charge at is http://ResearchArchives.com/t/s?47db About Mitsubishi Motors Based in Japan, Mitsubishi Motors Corporation (TYO:7211) -- http://www.mitsubishi-motors.co.jp/-- manufactures automobile. The Company, along with its subsidiaries and associated companies, is engaged in the development, production, purchase, sale, import and export of general and small-sized passenger vehicles, mini- vehicles, sport utility vehicles (SUVs), vans, trucks and automobile parts, as well as industrial machines. It is also engaged in the checking and maintenance of new vehicles, as well as the provision of automobile sales financing and leasing services. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 19, 2009, Standard & Poor's Ratings Services revised to negative from stable the outlook on its 'B+' long-term corporate credit rating on Mitsubishi Motors Corp., reflecting the increased likelihood, in S&P's view, of a prolonged deterioration in the company's financial performance. Amid the ongoing turbulence in global auto markets, Mitsubishi Motors' financial performance has sharply worsened. This is due in large part to anemic sales in certain areas, such as Russia, that had contributed materially to the company's earnings over the past few years. At the same time, Standard & Poor's affirmed its long-term corporate credit and 'BB-' senior unsecured debt ratings on Mitsubishi Motors. NIPPON RESIDENTIAL: Moody's Upgrades Issuer Ratings to 'B2' ----------------------------------------------------------- Moody's Investors Service has upgraded to Ba2 from B1 its issuer and senior unsecured long-term debt ratings for Nippon Residential Investment Corporation and kept them on review for a further possible upgrade. These upgrades partly reflect the recognition that the M&A process -- between NRI and Advance Residence Investment Corporation and will start in March 2010 -- is facilitating the business reconstruction of NRI. On September 25, 2009, an M&A agreement between NRI and ADR was concluded. Previously, the 93.8% of shares of Pacific Residential Corporation, an asset management company of NRI, were held by Pacific Holdings Inc, which was undergoing corporate rehabilitation proceedings. However, at the time of the M&A agreement, AD Investment Management Co., Ltd, an asset management company of ADR and subsidiary of ITOCHU Corporation (Baa1), acquired the shares of PRS and became its parent company. This development ended the negative effect on NRI's operation of its sponsor's credit impairment. According to the documents of a combined analysts meeting on September 28, 2009, a newly-created REIT will be listed at the beginning of March, 2010 after a unit-holders' meeting scheduled on November 30, 2009. As for recent refinancing activity, JPY 18 billion in bonds -- due in September and October -- have been redeemed by loans under a reserved agreement, which was concluded subject to the conclusion of the M&A agreement. The latter has been signed. In October, a 5-year loan from the Development Bank of Japan was newly financed and concerns over refinancing resolved. NRI's portfolio, with its focus on residential properties, equals about JPY 302.7 billion (based on purchase prices), with 137 properties involving about 9,300 rentable units. As two properties have been sold since the end of last year -- in forced sales -- due to financial reasons, the portfolio is mostly new and well diversified throughout Tokyo and neighboring areas. These characteristics will help it enjoy stable cash flows. The average occupancy rate for the fiscal half-year ended May 2009 was 93.7% and 92.9% in the end of September, 2009; the one-point fall reflected occupancy declines for large units. Such units account for about 10% of the portfolio. Performance will be stressed to some extent in such high-end properties. In addition, Moody's is concerned that the value of the real estate in the portfolio is declining, affected by the low liquidity of real estate. In the review, Moody's will focus on 1) the results of the unit- holders' meeting; 2) any improvements in assets due to the merger with ADR; 3) improvements in financial leverage by PO, etc; 4) elimination of the subordination of its issuer and senior unsecured long-term debt ratings to outstanding borrowings through an improvement of its secured debt ratio; and 5) improvements in earnings through the replacement of properties by negative goodwill. Moody's previous rating action on NRI took place on August 7, 2009, when it changed the direction of its review of the B1 issuer and senior unsecured long-term debt ratings to possible upgrade. The rating action takes into account the fact that NRI's rated bonds are subordinated to its outstanding borrowings. Nippon Residential Investment Corporation is a Japanese real estate investment trust investing in and managing residential properties. Its operating revenues totaled approximately JPY9.1 billion for the fiscal half-year ended May 2009. ========= K O R E A ========= GENERAL MOTORS: Court Bans TagAZ Korea from Copying Sedan Models ---------------------------------------------------------------- GM Daewoo, the South Korean subsidiary of General Motors, welcomed a court ruling that bans a Russian carmaker's local unit from copying one of its models, The China Post reports. The Post relates that a Seoul court accepted last week a petition by GM Daewoo which sought to prevent its products from being copied by TagAZ Korea. The court banned TagAZ Korea from using or passing on trade secrets and from producing or selling engines and knockdown modules of its C-100 sedan, the Post relates. According to the report, GM Daewoo said the court acknowledged that TagAZ Korea "illegally obtained core product technology of GM Daewoo Lacetti and used it developing, manufacturing, selling and exporting C-100 vehicles, and prohibited listed illegal actions by a preliminary injunction." The Troubled Company Reporter-Asia Pacific reported on Sept. 25, 2009, that GM Daewoo filed a petition with the Seoul central district court to prevent TagAZ Korea from breaching its intellectual property rights and trade secrets. The petition seeks an injunction to stop TagAZ from developing, manufacturing, selling and exporting copied products and from using and disclosing GM Daewoo's trade secrets. The court action came after local prosecutors arrested two former GM Daewoo employees on charges of handing over core information on the company's popular "Lacetti" sedan before getting jobs at the local branch of Russian auto firm TagAZ, according to The Korea Times. The Times said prosecutors suspect the former employees of GM Daewoo copied over 6,000 files from their personal computers containing crucial technology details on engine and parts designs to build the Lacetti. It is believed the leaks helped TagAZ introduce its latest "C-100" model sedan in Russia, the Times stated. About GM Daewoo GM Daewoo Auto & Technology was established on October 17, 2002. It has five manufacturing facilities in Korea as well as an assembly facility in Vietnam. In addition, GM Daewoo provides market and brand-specific vehicle kits for assembly at GM facilities in China, Thailand, India, Colombia and Venezuela. In 2008, GM Daewoo sold in Korea and exported more than 1.9 million units, including CKD products. GM Daewoo now produces vehicles and kits that are offered in more than 150 markets on six continents. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- as founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported by the Troubled Company Reporter, GM reported net loss of US$6.0 billion, including special items, in the first quarter of 2009. This compares with a reported net loss of US$3.3 billion in the year-ago quarter. As of March 31, 2009, GM had US$82.2 billion in total assets and US$172.8 billion in total liabilities, resulting in US$90.5 billion in stockholders' deficit. General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). ==================== N E W Z E A L A N D ==================== SOUTH CANTERBURY: Secures NZ$75-Mln Loan from Torchlight Credit --------------------------------------------------------------- South Canterbury Finance Limited said it has repaid US$50 million of notes held by US investors and executed arrangements regarding a new senior $75 million funding line. The facility was arranged by Forsyth Barr and has been fully drawn down. The facility has been provided by Torchlight Credit Fund LP which has arranged funding from a syndicate of professional investors from Australia and New Zealand. Funds provided have been used by the Company to repay US$50 million of principal to institutions invested in notes issued pursuant to a US$100 million private placement. The remaining US$50 million will be repaid progressively over the next five months. "We are very pleased to have this new facility provided by investors who understand the business cycle and the opportunities for South Canterbury Finance. We are continuing to progress our own restructuring plans and will make further announcements when we are able to," South Canterbury Finance Chairman Allan Hubbard said in a statement. On behalf of Torchlight Credit Fund, George Kerr said "investments that are perceived to be too difficult for banks often create opportunities for fund managers. The fund has been established to focus on exactly this type of situation. We are pleased to have been able to arrange $75 million of funding for South Canterbury Finance in support of Mr. Hubbard's plans for the business." Mr. Hubbard said these developments are an important step forward for the company. "South Canterbury has a proud 83 year history of supporting New Zealand businesses and we see good opportunities in the market. Completion of our restructuring will enable us to pursue these after the difficulties of the last few months." The Company also notes that it is receiving a good response from investors to the prospectus registered. The prospectus for a range of securities and deposits offers yields of up to 8.5% per annum over a range of maturities, including a current rate of 8% per annum for deposits that mature on October 11, 2010, inside the New Zealand Deposit Guarantee Scheme. Credit Ratings Downgrade As reported in the Troubled Company Reporter-Asia Pacific on September 23, 2009, Standard & Poor's Ratings Services placed its 'BB+' long-term rating on South Canterbury Finance Ltd. on CreditWatch with negative implications. This rating action follows S&P's concern that SCF's risk profile has increased since S&P lowered the ratings on the company on Aug. 13, 2009. A CreditWatch Negative listing by Standard & Poor's implies a one- in-two likelihood of the rating being lowered within the next three months. About South Canterbury Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA) -- http://www.scf.co.nz/-- is engaged in the provision of financial services. The Company's principal activities are borrowing funds from public and institutional investors and on- lending those funds to the business, plant and equipment, property, rural and consumer sectors. It typically advances funds by means of hire purchase, floor plans, leasing of plant, vehicles and equipment, personal loans, business term loans and revolving credit facilities, mortgages against property, and other financial instruments, including consumer loan insurance. Southbury Group Limited holds a controlling interest in the Company. Its subsidiaries include Ashburtin Finance Ltd, Auckland Finance Ltd, Canterbury Finance Ltd, Coversure Guarantee Ltd, Face Finance Ltd, Helicopter Nominees Ltd, Hotnchurch Ltd, Otage Finance Ltd, Palmerston North Finance Ltd, Rental cars Ltd, ZSCFG Systems Ltd, Walkato Finance Ltd and Wellington Finance Ltd. =========== T A I W A N =========== ASUSTEK COMPUTER: Posts NT$6.49BB Net Profit in Q3 -------------------------------------------------- Asustek Computer Inc. posted NT$6.49 billion (US$200 million) in net profit in the third quarter of 2009, edging up from NT$6.38 billion a year earlier, Taipei Times reports. Revenue was NT$67.06 billion, up 47.9% from NT$45.35 billion in the previous quarter but down 4% from NT$69.82 billion a year earlier, the report says. The company reported an operating margin of 5.8% in the third quarter, up from the second quarter's 0.1% percent, but down from 6.9% from a year earlier, the Times relates . Asustek said it expected revenues to surge next year, backed by rising shipments of notebooks. The report notes Asustek chief executive officer Jerry Shen said total shipments of notebooks and Eee PC netbooks are expected to rise 30% to 16 million next year, up from this year's forecast of between 11 million and 12 million units. Conventional notebooks will account for 55% of total shipments this year, while netbooks will take the rest, he said. Next year, conventional notebooks will take up 60%, while Eee PCs will make up 40%, Mr. Shen added. According to the report, notebooks and Eee PCs took up the chunk of third-quarter sales at 74%, while motherboards and graphics cards accounted for 25% and handheld devices 1%. ASUSTeK Computer Inc. -- http://www.asus.com.tw/-- is principally engaged in the provision of computers, communications and consumer electronics (3C) solutions. The Company offers desktop motherboards, server motherboards, three-dimension graphics display cards, audio cards, laptops, servers, smart personal digital assistant (PDA) mobile phones, liquid crystal displays (LCDs), LCD televisions, broadband communication products, compact disc read-only memory (CD ROM) drives, digital versatile disc (DVD) drives, disc carving machines and Eee personal computers (PCs), among others. The Company distributes its products in domestic market and to overseas markets, including the United States, Canada, Asia Pacific, Europe and Africa. * * * As reported by the Troubled Company Reporter-Asia Pacific on March 11, 2009, Fitch Ratings downgraded ASUSTeK Computer Inc.'s long-term foreign currency issuer default ratings to 'BB+' from 'BBB-' (BBB minus); placed on Rating Watch Negative. =============== T H A I L A N D =============== CIMB THAI: Fitch Assigns Individual Rating at 'D' ------------------------------------------------- Fitch Ratings has assigned CIMB Thai Bank Public Company Limited these ratings: National Long-term 'A+(tha)' with Stable Outlook, National Short-term 'F1(tha)', Long-term foreign currency Issuer Default Rating of 'BBB-' with a Stable Outlook, Short-term foreign currency IDR 'F3', Individual 'D' and upgraded the Support rating to '2' from '3'. Fitch has also assigned CIMBT's upper tier 2 debt issued in March 2009 of THB2.5 billion with a maturity of 10 years a National rating of 'A-(tha)'. The upgrade of the Support rating reflects increased support from new majority shareholder CIMB Bank Berhad ('BBB+'/Stable) through a capital injection and management control as well as direct name association with its parent following its acquisition in January 2009. Such operational and financial support should help improve CIMBT's financial performance and capital position in the medium term. Given CIMB's near-full ownership, management control and direct name association, Fitch expects a high probability of shareholder support, if needed. Any change in the shareholding structure that could weaken the support is likely to affect the bank's ratings. The Stable Outlook reflects that of its parent and expectation of continued strong support. The National rating of CIMBT's upper tier 2 debt security is two notches below the bank's National Long-term rating due to strong parent support of payment of coupon obligations even in the event of a loss. Following large losses in the past two years due to CDO charges and provisioning expenses, CIMBT returned to a small net profit in Q309. While full-year performance is expected to remain weak, the bank's performance should improve in the next one to two years as loan growth picks up and the bank completes its integration with its parent. CIMBT's asset quality remains weaker than that of its peers, with an NPL ratio at end-September 2009 of 16.5% (versus 14.4% at end- 2008), although this is partly due to loan book contraction. In absolute terms, NPLs remained at THB13.4 billion. Reserve coverage is moderately lower than the industry average, at 60% of NPLs at end-September 2009, although this is expected to be strengthened gradually. Loan to deposit ratios are relatively low as lending had been constrained by a weak capital base. Funding and liquidity risks should also be mitigated by CIMB's support. CIMBT has downsized its deposit base and plans to reposition its deposit structure to reduce funding costs. Following CIMB's acquisition in January 2009, CIMBT raised THB2.5bn of new capital -- mostly from the parent -- through a rights issue and in March issued THB2.5bn hybrid upper tier 2 debt to strengthen its capital. However, the bank's tier 1 ratio at end-September 2009 was 6.7% which is weaker than the industry's average of 11%, while its total capital was 13.2%. CIMBT, formerly known as Bank Thai, was formed in 1998 as a result of a government-initiated merger of several defunct financial institutions. The Financial Institutions Development Fund acquired a majority stake in BT after the merger, with a 96.32% shareholding in 2000, which was later reduced to 48.98%. In November 2008, CIMB acquired the FIDF's stake in BT and subsequently made a tender offer for the remaining shares from minority shareholders including TPG Newbridge, and currently holds a 93.15% stake. * Asia Recovering Fast, but Faces a "New World," IMF Says --------------------------------------------------------- Asia is rebounding rapidly from the depth of the global crisis, the International Monetary Fund said in its latest report on the region. According to the Regional Economic Outlook for Asia and the Pacific, released October 29, 2009, in Seoul, Asia's growth is forecast to accelerate to 5-3/4 percent in 2010 from 2-3/4 percent in 2009, both higher than previously projected. "The primary driver of Asia's recovery has been a progressive return towards normalcy following the abrupt collapse in global trade and finance at the end of 2008," the report said. "Just as the U.S. downturn triggered an outsized fall in Asia's GDP because international trade and finance froze, now their normalization is generating an outsized Asian upturn." This development confirms that Asia has not decoupled from the rest of the world, the REO noted. In fact, Asia's fortunes remain closely tied to that of the global economy. The other key driver of Asia's recovery, according to the report, has been the region's rapid and forceful policy response. This reaction was made possible by Asia's strong initial conditions: fiscal positions were sounder, monetary policies more credible, and corporate and bank balance sheets sturdier than in the past. These conditions have given policymakers the space to cut interest rates sharply and adopt large fiscal packages, helping to sustain overall domestic demand. What lies ahead? The REO notes that global conditions are expected to continue to improve gradually in 2010. According to the IMF's latest forecasts, output in the large G7 economies is forecast to grow by 1-1/4 percent next year, recouping only half the contraction estimated for 2009, because private demand in these countries remains constrained by the legacy of the crisis. Consequently, overseas demand for Asia's products will remain subdued, keeping the region's growth well below the 6-2/3 percent average recorded over the past decade. In this environment, policymakers will face two major challenges, the report said. In the near term, they will need to manage a well integrated balancing act, providing support to the economy until the recovery is sufficiently robust and self-sustaining while ensuring that the support does not ignite inflationary pressures or concerns over fiscal sustainability. Over the medium term, policymakers will need to find a new momentum to return to sustained, rapid growth in a new global environment of likely softer G7 demand. In this "new world", Asia's longer term growth prospects may be determined by its ability to recalibrate the drivers of growth to allow domestic sources to play a more dynamic role. To be successful, rebalancing will require greater exchange rate flexibility and structural reforms that will allow for a smooth reallocation of resources across the economy. In the first of two analytic chapters, the REO explores how Japan emerged from its banking crisis in the 1990s to draw lessons for the current global recovery. "How Japan Recovered From Its Banking Crisis: Possible Lessons for Today" finds that a sustainable recovery in Japan only took hold when spillovers from a favorable external environment reinvigorated private domestic demand and the financial and corporate sector problems at the heart of the crisis were adequately addressed. Japan's experience suggests that "green shoots" do not guarantee a recovery, implying the need to be cautious on the outlook today, and that addressing financial fragilities in the advanced economies is crucial for securing a durable recovery. Chapter III, "Corporate Savings and Rebalancing in Asia", analyzes the sharp increase in corporate savings in Asia over the past few years even as investment has remained subdued. This unusual combination poses a question: why didn't corporations pay out their profits as dividends, if they didn't have suitable investment projects? The chapter concludes that resolving this issue requires further structural reform. Greater financial development could reduce companies' need to retain earnings for precautionary reasons, while improvements in corporate governance could ensure that managers retain earnings only for investments in profitable projects. ********* 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 ***