/raid1/www/Hosts/bankrupt/TCRAP_Public/090803.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, August 3, 2009, Vol. 12, No. 151
Headlines
A U S T R A L I A
BABCOCK & BROWN: GPT Exits European Component of Joint Venture
DIORO EXPLORATION: Ramelius Makes AU$92-Mln Takeover Offer
INTERSTAR TITANIUM: S&P Affirms 'BB' Rating on 2006-1 Notes
MIRTNA CAPITAL: ASIC Seeks to Wind Up Three Mirtna Firms
POLARTECHNICS LTD: To Be Placed Into Voluntary Administration
STORM FINANCIAL: CBA Extends Resolution Scheme for Storm Clients
C H I N A
COUNTRY GARDEN: S&P Cuts Ratings on US$600 Mil. Bonds to 'BB'
GENERAL MOTORS: GM China Expects 70% Rise in Sales This Month
SINO-FOREST CORPORATION: Moody's Assigns 'Ba2' Rating on Notes
H O N G K O N G
ASAT HOLDINGS: Lenders Extend Forbearance Period Through Aug. 30
BLUE WELL: Appoints Nedderman and Ping as Liquidators
CHINA PACKAGING: Court to Hear Wind-Up Petition on September 9
EAST NOBLE: Appoints Nedderman and Ping as Liquidators
GENCROSS INTERNATIONAL: Appoints Nedderman and Ping as Liquidators
GRACESINO INVESTMENT: Appoints Nedderman and Ping as Liquidators
JET WIN: Court to Hear Wind-Up Petition on August 19
KENLAP PGC: Pays First and Interim Ordinary Dividend
LION INTERNATIONAL: Appoints Nedderman and Ping as Liquidators
MODERN APEX: Contributories' and Creditors' Meeting Set for Aug. 7
PEOPLELABS LIMITED: Appoints Nedderman and Ping as Liquidators
SMITH & SMITH: Appoints Nedderman and Ping as Liquidators
SWISS ALUMINUM: Appoints Nedderman and Ping as Liquidators
TOP TREASURE: Appoints Nedderman and Ping as Liquidators
TOPGAIN INTERNATIONAL: Appoints Nedderman and Ping as Liquidators
TRUSTASIA (HONG KONG): Appoints Nedderman and Ping as Liquidators
UNIROSS BATTERRIES: Appoints Liquidators & Committee of Inspection
WEALTH FAIR: Court to Hear Wind-Up Petition on September 2
I N D I A
CAPITAL POWER: Fitch Assigns National Long-Term Rating at 'B+'
CAPITAL METERS: Fitch Assigns National Long-Term Rating at 'B'
CATHOLIC APOSTOLATE: CRISIL Rates INR220 Million Term Loan at 'B-'
CHARISMA BUILDERS: CRISIL Rates INR415 Mln Long Term Loan at 'B+'
DANDAPAT COLD: CRISIL Puts 'B' Rating on INR14.1 Million Term Loan
DECOR PAPER: CRISIL Rates Rs.170.00 Million Term Loan at 'B-'
FINE STAR: Low Net Worth Cues CRISIL to Assign 'P4' Rating
HEMA DYEING: CRISIL Assigns 'BB-' Ratings on Various Bank Loans
HEMALATHA MILLS: CRISIL Places 'B' Rating on INR72.2-Mln LT Loan
J P ENGINEERS: Low Net Worth Prompts CRISIL 'BB+' Rating
KINGFISHER AIRLINES: Posts INR16.09BB Annual Loss; Delays Salaries
KISSAN FATS: CRISIL Places 'BB-' Rating on INR184.2MM Term Loan
NOEL PHARMA: CRISIL Assigns 'B+' Rating on INR85MM Cash Credit
PATIDAR INDUSTRIES: CRISIL Rates INR100MM Cash Credit Limit at 'B'
RUPASI BANGLA: Weak Financial Profile Cues CRISIL 'B' Ratings
SANDHYA AQUA: CRISIL Puts 'B+' Rating on INR40MM Term Loan
SATYAM COMPUTER: Court Dismisses Petition Against CLB Order
SHREE RAM: CRISIL Puts 'BB' Rating on INR65MM Cash Credit Facility
SUN PHARMACEUTICAL: Profit Drops 64% on Suits Against U.S. Unit
TATA STEEL: First Quarter Profit Declines 47%
TATA STEEL: Raises US$500 Million Via GDR Sale in London
UNION BANK: Fitch Affirms Individual Rating at 'C/D'
VENKATA KRISHNA: Stretched Liquidity Cues CRISIL 'B' Rating
I N D O N E S I A
TELEKOMUNIKASI INDONESIA: Net Profit Falls 4% Percent in H1
J A P A N
TOSHIBA CORP: Q1 2009 Net Loss Widens to JPY57.8 Billion
* JAPAN: Bankruptcies in Auto Industry-Related Firms Up 50.8%
K O R E A
SSANGYONG MOTOR: May Liquidate Business if Strike Continues
* SOUTH KOREA: To Sell 9 Public Firms by Year's End
N E W Z E A L A N D
PROVENCOCADMUS: Shareholders Decline Further Funding
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A U S T R A L I A
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BABCOCK & BROWN: GPT Exits European Component of Joint Venture
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The GPT Group said it will exit the European component of its
joint venture with Babcock & Brown Ltd. by way of a dividend in
specie of shares in BGP Holdings, through which GPT holds its
interest in the European Joint Venture, to GPT Securityholders.
The European Joint Venture comprises GPT's ordinary equity and
preferred equity interests in BGP Investment Sarl, a Luxembourg
based company that indirectly owns the Joint Venture's European
investments.
Exiting the European Joint Venture in this way will provide
significant benefits to GPT, including:
* Significant reduction in exposure to offshore assets
* Confirmation that the European Joint Venture has no
recourse to GPT
* Retention of future upside from the European Joint Venture,
if any, for current GPT investors.
The decision removes the European Joint Venture, which represents
approximately 80% of GPT's exposure to the Babcock & Brown Joint
Venture, from GPT's balance sheet. There is no further recourse
to GPT or to investors in BGP Holdings.
Prior to the In Specie Dividend, GPT reviewed the near term
expected recoverable value of the investment and wrote down the
value of the Joint Venture from $1.16 billion at December 2008 to
a nominal amount at 30 June 2009. This will result in balance
sheet gearing increasing by approximately 2% as at June 30, 2009,
and a significant reduction in the Group's look through gearing.
The exit from the European Joint Venture follows the successful
capital raising to reduce GPT's debt in May 2009 (which reduced
the Group's gearing to amongst the lowest in the A-REIT sector)
and ongoing progress in relation to GPT's program of non-core
asset sales.
GPT's Chief Executive Officer Michael Cameron said, "From day one
I made it clear to the market and investors that our priority was
to restore shareholder confidence by addressing debt covenants and
refinancing risk and exiting the Babcock & Brown Joint Venture,
and today is a significant step in achieving that objective."
"The In Specie Dividend immediately removes the majority of the
Joint Venture and is a clear demonstration of GPT's commitment to
refocus on its core domestic strategy. GPT has not provided any
additional capital to the Joint Venture and will not be required
to fund or support the European Joint Venture going forward."
"The current intention of the Directors of BGP Holdings is to
realize the underlying assets of the European Joint Venture over
the next few years and return any net proceeds to investors. As a
result, current GPT Securityholders will benefit from any future
upside, if any."
"GPT's strengthened balance sheet, the removal of the majority of
the Joint Venture and progress on our non core asset sales program
position us well to focus on the future. I look forward to
providing the market with an update on the Group's strategy and my
vision for GPT on 6 August," Mr. Cameron said.
GPT's distribution guidance for the financial year ending
December 31, 2009, is not impacted by the In Specie Dividend, and
remains at 4.5 cents per security.
As a result of the divestment of the majority of the Joint
Venture, Neil Tobin will leave the Group at the end of August
2009.
The management of the US retail assets remaining in the Joint
Venture will be overseen by GPT's retail team through to
divestment.
GPT's Remaining Exposure to the Joint Venture
with Babcock & Brown Post the In Specie Dividend
GPT will retain 5.3% of the ordinary equity in BGP Holdings to
prevent the triggering of real estate transfer tax in some of the
underlying portfolios.
GPT will also retain a non-participating and non-voting B class
share in BGP Holdings 22, a subsidiary of BGP Holdings.
GPT has valued these stakes at zero and does not expect to receive
any dividends or capital returns from them.
GPT Halverton will continue to provide investment management and
property asset management services to BGP Investment Sarl and its
subsidiaries. These management services will be provided on an
arms length basis, with typical terms and conditions.
Given GPT's stated intention to focus on its core Australian
portfolio, GPT will now review options in relation to the GPT
Halverton platform. Options include a divestment in the near-to-
medium term to a more natural owner whose longer term interests
are more closely aligned with those of GPT Halverton's various
stakeholders (including GPT Halverton's fund investors,
relationship banks and employees).
GPT will still hold an equity interest at nominal value in the
United States component of the Joint Venture. GPT is seeking to
exit these assets and will not make any capital contributions to
these assets or the Joint Venture. The United States component of
the Joint Venture is non recourse to GPT.
GPT Group comprises General Property Trust (Trust) and its
controlled entities and GPT Management Holdings Limited (Company)
and its controlled entities. The Company is engaged in investing
in income producing retail, office, industrial, business parks and
seniors housing properties; development of Australian retail,
commercial, industrial and business park properties; property
trust management; property management; funds management, and hotel
management.
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.
Babcock & Brown International Pty Ltd. is the holding company of
Babcock & Brown Limited.
DIORO EXPLORATION: Ramelius Makes AU$92-Mln Takeover Offer
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Ramelius Resources Limited disclosed Thursday a AU$92 million
conditional offer to merge with Dioro Exploration NL.
The Offer is an all share offer in which Ramelius will offer Dioro
shareholders two Ramelius shares for every one Dioro share held.
As at market close on July 29, 2009, the superior Ramelius merger
ratio values Dioro at AU$1.00 per share.
"If Ramelius acquires 100% of Dioro's shares on the basis of a
two-for-one merger ratio, Dioro shareholders will hold
approximately 45% of the merged entity, with Ramelius shareholders
holding the balance," Ramelius said in a statement.
The offer is subject to certain conditions including a 50.1%
minimum acceptance condition.
Ramelius has engaged Adelaide Equity Partners Limited as corporate
and financial advisor and DMAW Lawyers as legal advisor to the
transaction.
As reported in the Troubled Company Reporter-Asia Pacific on
July 30, 2009, the directors of Dioro Exploration have recommended
Avoca Resources Limited's unconditional takeover offer after Avoca
agreed to increase its consideration to 1 Avoca share for every
2.3 Dioro shares held. The increase will apply to all Dioro
shareholders who accept the offer, including those who accepted
prior to the increase.
Avoca's increased offer presently values each Dioro Share at 74.6
cents per share and represents a premium of approximately 89% to
the 39.5 cent closing price of Dioro Shares on April 9, 2009 (the
trading day prior to the announcement of the Offer).
The TCR-AP reported on April 16, 2009, that Dioro Exploration said
it has received notification of an intention to make a takeover
offer from Avoca. The original offer valued Dioro at about AU$49
million while the revised bid was worth about AU$68.5 million, at
the time of their respective announcements, according to WA Today.
Ramelius Resources Limited is an Australia-based company. The
Company's principal activity is gold and minerals exploration and
production. During the fiscal year ended June 30, 2008, the
Company milled 96,910 tons of Wattle Dam ore to produce
approximately 16,939 ounces of gold.
About Avoca Resources
Avoca Resources Limited is engaged in the mineral exploration and
resource development. The Company is developing the Higginsville
Gold Project, as well as exploring several gold deposits in
Western Australia. Avoca's principal project is the Higginsville
Gold Project, located 180 kilometer south of Kalgoorlie. In
Western Australia, it owns 100% of the Mt. Fisher Gold-Nickel
Project. The Mt. Fisher Project is located 400 kilometer north of
Kalgoorlie and represents distinct gold and nickel mineralization
in a project area of 740 kilometer. It has eight joint venture
developments in Western Australia. The Company has Western
Australia Joint Ventures with La Mancha, Integra Mining,
Metex/Barrick, Great Gold Mines, Regal Resources and Encounter
Resources. Avoca Mining Pty Ltd is the Company's wholly owned
subsidiary.
About Dioro Exploration
Based in Australia, Dioro Exploration NL (ASX:DIO) --
http://www.dioro.com.au/-- is a gold mining and exploration
company. The company owns the South Kalgoorlie mining operation
(South Kal operation) located 32 kilometers south of Kalgoorlie,
which includes 220,000 ounces of open pitable reserves, 1.675
million ounces of measured and indicated resources, the 1.2
million tonne per annum Jubilee processing facility and
approximately 1,100 square kilometers of exploration acreage. In
addition, Dioro owns a 49% interest in the Frog's Leg gold project
located 20 kilometers west of Kalgoorlie, which includes 605,000
ounces of underground gold reserves. Its subsidiaries include HBJ
Minerals Pty Ltd, Hampton Gold Mining Areas Limited and Lodestar
Minerals Limited.
* * *
Dioro Exploration reported a net loss of AU$15.99 million for the
year ended Aug. 31, 2008 -- its third consecutive annual loss. In
2007, the company posted a AU$1.32 million net loss. Dioro also
reported a AU$0.64 million net loss for 2006.
INTERSTAR TITANIUM: S&P Affirms 'BB' Rating on 2006-1 Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services removed the Class D notes
issued by Interstar Titanium Series 2006-1 Trust from CreditWatch
with negative implications, where they were placed on June 18,
2009. At the same time, S&P affirmed the 'BB' rating on the
notes. The notes are backed by a portfolio of subprime and
nonconforming residential property loans originated by Interstar
Non-Conforming Finance Pty Ltd. (now Challenger Mortgage
Management Pty Ltd.).
The rating actions reflect S&P's view -- based on further
information provided and continued amortization of the portfolio
-- that the accumulated credit support provided as a proportion of
outstanding balance and the expected future excess spread will be
sufficient to withstand expected losses at the 'BB' rating level.
Rating Removed From CreditWatch Negative
Transaction Class Rating to Rating from
----------- ----- --------- -----------
Series 2006-1 Trust D BB BB/Watch Neg
MIRTNA CAPITAL: ASIC Seeks to Wind Up Three Mirtna Firms
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The Courier-Mail reports that the Australian Securities and
Investment Commission has commenced winding up proceedings in the
Supreme Court against three companies controlled by James Lovell,
the owner and founder of the Mirtna group of companies.
ASIC seeks to wind up Mirtna Capital Pty Ltd, Mirtna Holdings Pty
Ltd and Mirtna Investments Pty Ltd, the report says.
The Courier-Mail relates that Mr. Lovell, who was a sponsor of the
Queensland Reds and the Mercedes-Benz Fashion Festival Brisbane,
was arrested at his Park Road, Milton offices on July 16 on
suspicion of fraud.
Mr. Lovell appeared in the Brisbane Magistrates Courts on July 18
charged with one count of fraud and released on bail with the
matter adjourned for committal mention on September 7, the report
says.
According to the report, up to 200 investors are thought to have
given money to Mr. Lovell and his companies, which included
investment and superannuation funds.
On May 12, the report recounts, Mr. Lovell wrote to investors
telling them that the Australian Taxation Office had "requested
the international bank accounts of the investment company be
frozen pending further investigation."
Mirtna wrote to investors on June 30 that it was the subject of an
ASIC probe and that "the Mirtna Group and Life Super funds have
ceased all operations and are currently providing information to
ASIC as they request it."
Meetings have been arranged between the Major Fraud Investigation
Group of the Queensland police and investors on August 6 and 20,
the report notes.
Established in 2007, Mirtna Capital Limited provides managed fund
services to both wholesale and retail investors in Australia.
POLARTECHNICS LTD: To Be Placed Into Voluntary Administration
-------------------------------------------------------------
Polartechnics Limited said it will be placed into voluntary
administration.
"The working capital available to the Company has been fully
committed and the conversion of debtors to cash the funding
payment of creditors is not yet sufficient nor timely to solely
support the funding requirements for the continued growth of the
business," Polartechnics said in a statement to the Australian
Securities Exchange on Friday.
"The board has been actively involved in consideration and
delivery of new capital raising initiatives. Due to events
outside the board's control, a critical new investor commitment
did not complete and resulted in the Board, at short notice,
having to assess its immediate funding capability."
The Company said its board has taken into consideration the
current financial position of the Company, including the position
of its creditors, the status of discussions with various funding
sources known to the board, the likely timetable needed to
rearrange replacement funding and the general economic conditions
in which the Company is operating.
The Company said it intends to continue to provide essential
services to its customers and ensure that all TruScreen
distributors have access to inventories for their ongoing
TruScreen related operations during the initial period.
The board has formed the view that Polartechnics needs to:
-- restructure the operations so as to minimize its need for
working capital over the next quarter to allow time for
the TruScreen operations in Asia and Eastern Europe to
further mature and in doing so take the opportunity to
significantly reduce its monthly operating expenses, and
-- postpone the proposed launch of CerviScreen until
dedicated project funding is confirmed.
The board said that the best way forward for the Company was to
voluntarily appoint an Administrator to carry out the restructure
of the Company's operations.
Polartechnics Limited (ASX:PLT) -- http://www.polartechnics.com--
is engaged in the business of marketing and commercialization of
pre-cancer and cancer detection equipment and continued research
and development activities relating to these products. The
products are involved in screening for cervical cancer. The
Company has developed cancer screening devices, which include
TruScreen, SolarScan and MediScan. Polartechnics is active in
Australia and New Zealand; East Asia, including China, Korea and
Taiwan; South East Asia; South Asia throughout India; Eastern
Europe including Greece, Hungary, Turkey; Middle East including
Egypt and United Arab Emirates, and United Kingdom and Ireland.
The Company's subsidiaries include Mediscan Investments Pty
Limited, Mediscan Research & Development Pty Limited, Mediscan
Marketing Pty Limited and Polartechnics (UK) Ltd.
STORM FINANCIAL: CBA Extends Resolution Scheme for Storm Clients
----------------------------------------------------------------
The Commonwealth Bank of Australia has extended for another month
a moratorium on interest payments for customers impacted by the
collapse of Storm Financial.
The extension to September 30, 2009, is to enable customers to
register for participation in the Storm Financial Resolution
Scheme, the Bank said in a statement.
CBA stated that customers who register for the Scheme will have
their interest payments suspended until their participation in the
Scheme ends: either through the customer accepting an offer or the
customer withdrawing from the Scheme.
Through the Resolution Scheme, which involves law firm Slater &
Gordon Limited, the Bank has committed to:
* A review of each CBA/Colonial customer's circumstances;
* disclosure of relevant documents in respect of a
customer's circumstances;
* the provision of legal advice paid for by the Bank; and
* access to former High Court Judge, Mr. Ian Callinan, to
resolve disputes where agreement cannot be reached.
Registration for the Scheme will be via a customer's legal
representation. The Commonwealth Bank will also be contacting
customers who are eligible for the scheme to provide details about
how they can participate.
For customers who choose not to register for the Scheme, interest
repayments will recommence on October 1, 2009.
The Bank reaffirmed its commitment to customers impacted by Storm
Financial, reiterating that where the Bank has done wrong, it will
be put right for customers. CBA again appealed to customers
experiencing hardship to contact the Bank to discuss their
situation.
About Storm Financial
Storm Financial Limited -- http://www.stormfinancial.com.au/--
operates in the Australian wealth management industry. The
company manages over one trillion dollars in investment fund
assets for over nine million investors, distributed through
investment administration providers and financial adviser. The
funds are invested through different investment products and
structures, including superannuation, nonsuperannuation managed
funds and life insurance products. Non-superannuation managed
funds, which form the majority of Storm's products, total
approximately 26.5% of total investment fund assets in Australia,
as of June 30, 2007.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 14, 2009, Storm Financial appointed Worrells as voluntary
administrators after the Commonwealth Bank of Australia Ltd (CBA)
demanded debt repayment of around AU$20 million.
Storm later closed its business and fired all of its 115 staff.
The closure, the company's administrators said, was due to the
significant reduction in Storm's income resulting in trading
losses being incurred "at a rate which the company could no longer
absorb."
The TCR-AP reported on Jan. 22, 2009, that the Commonwealth Bank
of Australia, Storm's largest creditor, lodged a AU$27.09 million
debt claim at a first meeting of the company's creditors on
January 20. Administrators Worrells Solvency & Forensic
Accountants said the group's remaining creditors are owed AU$51
million, plus a provision for dividends of AU$10 million.
On March 27, 2009, the Troubled Company Reporter-Asia Pacific
reported that the Australian Securities and Investments Commission
won its bid to liquidate Storm Financial Group after the Federal
Court ruled that the Company be wound up. Federal court Justice
John Logan appointed Ivor Worrell and Raj Khatri of Worrells
Solvency and Forensic Accountants as liquidators for the Company.
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C H I N A
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COUNTRY GARDEN: S&P Cuts Ratings on US$600 Mil. Bonds to 'BB'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its issue ratings on
the US$600 million 2.5% convertible bond due 2013 issued by
Country Garden Holdings Co. Ltd. to 'BB' from 'BB+'. At the same
time, Standard & Poor's affirmed its 'BB+' long-term corporate
credit rating on the China-based property developer. The outlook
is stable.
"S&P's issue rating is now one notch lower than the corporate
credit rating to reflect the fact that holders of the convertible
bond would be materially disadvantaged relative to the company's
onshore creditors in the case of a default," said Standard &
Poor's credit analyst Bei Fu.
Similar to its peers, Country Garden has incurred substantial
onshore debt and obligations to support its operations in China.
"We expect Country Garden's onshore borrowing to increase further
over the next two years, given its large undeveloped land bank and
the currently favorable lending rates in the domestic market,"
said Ms. Fu.
As at the end of December 2008, Country Garden's ratio of priority
debt to total assets was about 16%.
S&P affirmed the rating on Country Garden to reflect the execution
risks surrounding the company's aggressive growth, particularly
outside its home market of Guangdong; its declining margin; and
the cyclical and competitive nature of the Chinese real estate
sector, with an evolving regulatory environment. The rating also
reflects that the company has one of the largest and lowest-cost
land banks among all Chinese real-estate developers. Country
Garden's business model has had a track record in its home market
of Guangdong province, where it is a leading township developer.
Execution risk remains high, in S&P's view, as Country Garden
continues to enter less-developed new markets, some of which have
small populations and limited affordability levels. Although
sales are satisfactory in some new markets, the performance of
several projects is less than satisfactory, such as some in Inner
Mongolia and one project in Anhui province. S&P expects about 25%
of the company's 2009 revenue (based on the contract sales in
2008) to come from outside the province, compared with an
immaterial amount a year ago. Country Garden has now adjusted its
strategy to focus on its home market in Guangdong.
S&P expects Country Garden's gross margin to be lower than in
previous years as it derives more revenue from new markets --
which are less affluent than Guangdong -- and a changing product
mix, comprising a lower proportion of villas than in the past.
S&P anticipates that margin compression will continue over the
next few years. Nevertheless, S&P expects Country Garden's
financial performance to stay close to that of 2008. Similar to
peers, Country Garden's financial metrics -- although adequate for
the rating--weakened materially in 2008 from a strong level in
2007. Its EBITDA interest coverage weakened to 6.8x from 25x, and
the ratio of debt to EBITDA rose to 2.2x from 1x.
The stable outlook reflects Standard & Poor's expectation that
over the next two years Country Garden will maintain its credit
metrics at a moderate level and an adequate liquidity position,
consistent with its internal financial management targets, while
the company significantly grows and goes through cycles.
GENERAL MOTORS: GM China Expects 70% Rise in Sales This Month
-------------------------------------------------------------
General Motors Co. expects to report a 70 percent-plus increase in
China sales this month on the back of Chinese government stimulus
measures and a rebounding economy, Bloomberg News reports.
The report, citing GM China president Kevin Wale in an interview
in Shanghai, relates July sales will be about 140,000 vehicles.
The automaker, which sells brands including Buick, Wuling and
Chevrolet in China, will announce the final figure next week, the
report says.
According to Bloomberg, GM's China sales have jumped this year as
rural drivers snap up low-cost minivans with the help of
government subsidies. Along with tax cuts, says Bloomberg, the
handouts have allowed the country to avoid a slump in global
vehicle sales and put it on course to surpass the U.S. as the
world's largest auto market this year.
"GM is doing well this year" in China, Bloomberg quoted Ricon Xia,
a Shanghai-based analyst at Daiwa Research Institute, as saying.
Still, rising sales of minivans "don't mean that much because they
aren't very profitable."
Bloomberg relates that GM's first-half China vehicle sales surged
38 percent to 814,442. Sales at SAIC-GM-Wuling Automobile Co.,
its minivan venture, accounted for about 64 percent of total sales
in the period, the report notes.
About General Motors
Headquartered in Detroit, Michigan, General Motors Corp.
(NYSE: GM) -- http://www.gm.com/-- was 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). 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, is the Debtors'
restructuring officer. 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.
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.
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)
SINO-FOREST CORPORATION: Moody's Assigns 'Ba2' Rating on Notes
--------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 rating to Sino-Forest
Corporation's US$212.33 million senior notes due 2014. Moody's
has also affirmed Sino-Forest's Ba2 corporate family rating. The
outlook for the ratings is stable.
The new notes are in exchange for part of Sino-Forest's existing
US$300 million senior notes due 2011 ("2004 senior notes", rated
Ba2). Approximately US$87.6 million of the principal amount of
the 2004 senior notes remains outstanding.
"The company has also received the requisite consent to amend
certain provisions of the indenture governing the 2004 senior
notes; this will, among other things, allow it to incur more debt
at its operating subsidiary. Nonetheless, its projected financial
profile remains appropriate for its existing rating level, while
the extended debt maturity further improves its financial
flexibility," says Wonnie Chu, a Moody's Analyst.
"Sino-Forest's Ba2 rating remains underpinned by the company's
unique position in China's forestry plantation industry, financial
prudence, and strong liquidity. The rating also considers the
company's aggressive growth appetite, which has resulted in
continued negative free cash flow generation," adds Chu, also
Moody's lead analyst for the company.
The stable rating outlook reflects Sino-Forest's strong financial
performance which positions it well at the current rating level.
Upward rating pressure could arise if the company builds on its
track record for delivering on its business plan and by growing
its plantation base to produce recurring cash flow, while
maintaining its strong financial profile and generating positive
free cash flow throughout the industry cycle.
On the other hand, the ratings will come under downward pressure
if: 1) the company fails to achieve its business plan and its cash
flow declines due to an inability to secure enough plantations; 2)
its overall business risk rises substantially due to material
acquisitions; and/or 3) changes occur in China's regulatory regime
which fundamentally alter operating conditions with a consequent
reduction in profitability.
Credit metrics that Moody's would consider for a downgrade include
RCF/Adjusted Debt below 15-20% and EBIT/Interest of less than 2.5-
3.0x.
The last rating action with regard to Sino-Forest was taken on
July 24, 2008, when the company's Ba2 rating was affirmed with a
stable outlook following its US$345 million convertible bond
issuance.
Sino-Forest's ratings have been assigned based on factors that
Moody's believes are relevant to the risk profile of Sino-Forest,
such as the company's (i) business risk and competitive position
compared with other firms within the industry; (ii) capital
structure and financial risk; (iii) projected performance over the
near to intermediate term; and (iv) management's track record and
tolerance for risk.
These attributes were compared against other issuers both within
and outside Sino-Forest's core industry; Moody's believes the
company's ratings are comparable with those of other issuers of
similar credit risk.
Sino-Forest Corporation is a holding company listed in Toronto.
The company is engaged in forestry plantation activities in China
as well as in the sale of timber, wood logs and other wood
products in China.
================
H O N G K O N G
================
ASAT HOLDINGS: Lenders Extend Forbearance Period Through Aug. 30
----------------------------------------------------------------
ASAT Holdings Limited has received an Extension of Forbearance
Period under the Forbearance Agreements dated as of March 2, 2009,
with certain of the Noteholders under the 9.25% Senior Notes due
2011 issued by New ASAT (Finance) Limited and the lenders under
the Purchase Money Loan Facility.
The extended duration of the Forbearance Agreements is for an
additional period of 30 consecutive days, commencing on July 31,
2009, and expiring on August 30, 2009. The same terms and
conditions of the original Forbearance Period will stay in effect
for the Additional Forbearance Period, except that the definition
of 'Specified Defaults' has been expanded to include the failures
to pay interest on the Notes on August 1, 2009, and to pay
interest on the PMLA on June 30, 2009.
Under the terms of the Forbearance Agreements, the Noteholders and
PMLA Lenders agree to forbear from exercising their rights and
remedies against the Company with respect to certain designated
defaults until after August 30, 2009, subject to certain early
termination events.
Rescheduling of Court Date
On July 1, 2009, the Company has reached an agreement in principle
with a majority of its creditors on the terms of a consensual
financial restructuring of the obligations of New ASAT (Finance)
Limited under the Notes and the Company under the PMLA.
The restructuring of the Notes will be implemented through a
creditor scheme of arrangement in the Cayman Islands courts. The
first court hearing, which was originally planned for July 30,
2009, has been rescheduled. The Company has reapplied for a court
date in August and will announce the new date once it becomes
available.
"With an agreement in principal with the majority of our holders
in place we are now working towards getting the scheme approved
and sanctioned by the court as quickly as possible," said Kei Hong
Chua, chief financial officer of ASAT Holdings Limited.
About ASAT Holdings Limited
Based in Hong Kong, Dongguan, China and Milpitas, California, ASAT
Holdings Limited -- http://www.asat.com/-- provides semiconductor
package design, assembly and test services. With 20 years of
experience, the Company offers a definitive selection of
semiconductor packages and world-class manufacturing lines.
ASAT's advanced package portfolio includes standard and high
thermal performance ball grid arrays, leadless plastic chip
carriers, thin array plastic packages, system-in-package and flip
chip. ASAT was the first company to develop moisture sensitive
level one capability on standard leaded products. The Company
has operations in the United States, Asia and Europe.
BLUE WELL: Appoints Nedderman and Ping as Liquidators
-----------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of Blue Well Limited.
The company commenced wind-up proceedings on January 29, 2008.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
CHINA PACKAGING: Court to Hear Wind-Up Petition on September 9
--------------------------------------------------------------
A petition to wind up the operations of China Packaging Group
Company Limited will be heard before the High Court of Hong Kong
on September 9, 2009, at 9:30 a.m.
Deutsche Bank Aktiengesellschaft filed the petition against the
company on July 8, 2009.
The Petitioner's solicitor is:
Linklaters
Alexandra House, 10th Floor
Chater Road, Hong Kong
EAST NOBLE: Appoints Nedderman and Ping as Liquidators
------------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of East Noble Shipping (Agency) Limited.
The company commenced wind-up proceedings on October 21, 2005.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
GENCROSS INTERNATIONAL: Appoints Nedderman and Ping as Liquidators
------------------------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of Gencross International Limited.
The company commenced wind-up proceedings on September 22, 2008.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
GRACESINO INVESTMENT: Appoints Nedderman and Ping as Liquidators
----------------------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of Gracesino Investment Limited.
The company commenced wind-up proceedings on May 9, 2008.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
JET WIN: Court to Hear Wind-Up Petition on August 19
----------------------------------------------------
A petition to wind up the operations of Jet Win Logistics Limited
will be heard before the High Court of Hong Kong on August 19,
2009, at 9:00 a.m.
Chan Kwok Keung filed the petition against the company on June 15,
2009.
KENLAP PGC: Pays First and Interim Ordinary Dividend
----------------------------------------------------
Kenlap P.G.C. Manufacturer Company Limited paid the first and
interim ordinary dividend on July 24, 2009.
The company paid 5% to all received claims.
The company's liquidators are:
Messrs. Lai Kar Yan, Derek
Darach E. Haughey
One Pacific Place, 35th Floor
88 Queensway
Hong Kong
LION INTERNATIONAL: Appoints Nedderman and Ping as Liquidators
--------------------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of Lion International Knitting Limited.
The company commenced wind-up proceedings on October 22, 2007.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
MODERN APEX: Contributories' and Creditors' Meeting Set for Aug. 7
------------------------------------------------------------------
The contributories and creditors of Modern Apex Arts Limited will
hold a meeting on August 7, 2009, at 2:30 p.m. and 2:45 p.m.,
respectively, at Room 1636, 16th Floor of One Grand Tower, 639
Nathan Road, in Mongkok, Kowloon.
PEOPLELABS LIMITED: Appoints Nedderman and Ping as Liquidators
--------------------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of Peoplelabs Limited.
The company commenced wind-up proceedings on April 28, 2008.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
SMITH & SMITH: Appoints Nedderman and Ping as Liquidators
---------------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of Smith & Smith Company Limited.
The company commenced wind-up proceedings on May 17, 2007.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
SWISS ALUMINUM: Appoints Nedderman and Ping as Liquidators
----------------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of Swiss Aluminum Engineering (H.K.) Company Limited.
The company commenced wind-up proceedings on July 17, 2008.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
TOP TREASURE: Appoints Nedderman and Ping as Liquidators
--------------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of Top Treasure Engineering Limited.
The company commenced wind-up proceedings on October 23, 2008.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
TOPGAIN INTERNATIONAL: Appoints Nedderman and Ping as Liquidators
-----------------------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of Topgain International Investment Holdings Limited.
The company commenced wind-up proceedings on July 18, 2008.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
TRUSTASIA (HONG KONG): Appoints Nedderman and Ping as Liquidators
-----------------------------------------------------------------
Anthony Nedderman and Yan Miu Ping were appointed as liquidators
of Trustasia (Hong Kong) Limited.
The company commenced wind-up proceedings on November 21, 2005.
The Liquidators can be reached at:
Anthony Nedderman
Yan Miu Ping
Messrs. Tony Nedderman & Co. Ltd.
China Hong Kong Tower, 11th Floor
8 Hennessy Road
Hong Kong
UNIROSS BATTERRIES: Appoints Liquidators & Committee of Inspection
------------------------------------------------------------------
On July 6, 2009, Kennic Lai Hang Lui and Yuen Tsz Chun Frank were
appointed as liquidators of Uniross Batteries (HK) Limited.
The company also appointed the members of Committee of Inspection,
which includes:
-- Zhongshan Uniross Industry Company Limited;
-- BYD Company Limited; and
-- Everfast Rechargeables Limited;
The Liquidators can be reached at:
Kennic Lai Hang Lui
Yuen Tsz Chun Frank
Ho Lee Commercial Building, 5th Floor
38-44 D'Aguilar Street
Central, Hong Kong
WEALTH FAIR: Court to Hear Wind-Up Petition on September 2
----------------------------------------------------------
A petition to wind up the operations of Wealth Fair Technologies
Limited will be heard before the High Court of Hong Kong on
September 2, 2009, at 9:30 a.m.
Hang Seng Bank Limited filed the petition against the company on
June 26, 2009.
The Petitioner's solicitors are:
Messrs. Li, Kwok & Law
Man Yee Building, Units 1204-06
68 Des Voeux Road Central
Hong Kong
=========
I N D I A
=========
CAPITAL POWER: Fitch Assigns National Long-Term Rating at 'B+'
--------------------------------------------------------------
Fitch Ratings has assigned India's Capital Power Systems Limited a
National Long-Term rating of 'B+(ind)' and 'B+(ind)'/'F4(ind)'
ratings to its INR70 million fund-based and INR170 million non-
fund based bank limits. The Outlook is Stable.
CPSL's ratings are derived from its experience in manufacturing
electromechanical and electronic meters under the "Capital" brand
name for various state power utilities. The ratings derive
support from the status of the company as an approved supplier of
meters under Government of India schemes. The ratings also
incorporate CPSL's long-term debt-free status, reasonable order
book position and consecutive growth in EBITDA margins since FY05.
Rating concerns emanate primarily on account of the relatively
small size of operations (with practically no growth during FY05-
FY09), as well as low operating and net margins compared to
industry peers. Given the tender-driven nature of its business
and the increasing proportion of subcontracting work (CPSL
manufactures meters for larger private contractors), the company
remains prone to order cyclicality as well as potential delays in
installation and commissioning. In FY09 for example, CPSL's
turnover dipped by 31% in reflection of this trend.
Also, capacity utilization remains low. The ratings are
constrained by the high level of working capital intensity as well
as by customer concentration risk. CPSL's business also remains
prone to counterparty credit risk of its customers, many of whom
are SPUs with weak credit profiles; this risk is however partly
mitigated by the coverage of CPSL's products under GoI-sponsored
funding schemes. The company's increasing participation as a
subcontractor to larger companies (which have better credit
profiles) also provides some comfort. Fitch also notes that CPSL
and Capital Meters Limited are group companies in the same
business, and have cross-guaranteed the other's working capital
debt, which is also factored into the ratings.
Positive rating drivers include an increase in size and operating
margins, as well as a sustained decrease in working capital
intensity. On the other hand, a further increase in working
capital intensity or a fall in operating EBITDA margins would
constitute negative rating triggers. Any unplanned capital
expenditure that could potentially increase leverage would also
constitute negative rating guidance.
CPSL was incorporated in 1988 and has a production capacity of
1.5 million meters. The company's manufacturing facilities are
located in Noida in the state of Uttar Pradesh. As of FYE09, the
company reported sales of INR353 million and an operating EBTIDA
of INR20.8 million (provisional and unaudited).
CAPITAL METERS: Fitch Assigns National Long-Term Rating at 'B'
--------------------------------------------------------------
Fitch Ratings has assigned India's Capital Meters Limited a
National Long-Term rating of 'B(ind)', as well as
'B(ind)'/'F4(ind)' ratings to its INR45 million fund-based and
INR80 million non-fund based bank limits. The Outlook is Stable.
CML's ratings are based on the reasonable experience of its
promoters in the manufacturing of electromechanical and electronic
meters under the "Capital" brand name for various state power
utilities. The ratings also factor in the status of the company
as an approved and authorized supplier of meters under flagship
Government of India funding schemes.
Rating concerns originate primarily on account of the relatively
small size of operation relative to peers, as well as the high
level of volatility in revenues, capacity utilization and
operating margins. Given the tender-driven nature of its
business, CML's capacity utilization has fluctuated with the
company registering utilization levels below 20% over the last
three years.
Fitch notes that the SPUs have increasingly started procuring
electronic (static) meters and CML has been hard-pressed in
changing its product mix to cater to this demand. CML has also
experienced delays in obtaining approvals and test certificates to
manufacture electronic meters. Accordingly, CMLs operating
performance in FY08-FY09 has been very poor, with sales falling
60% during FY09. The company's revenues have oscillated during
FY05-FY09, ranging between INR89 million in FY09 to INR212 million
in FY05.
Concerns also emanate from CML's low profitability, its irregular
working capital cycle, high leverage levels and low coverage
ratios. Fitch notes CML's net margins been substantially aided by
profits from the sale of long-term investments over the last three
years. CML and Capital Power Systems Limited are group companies
in the same business and have cross-guaranteed each other's debt,
which has been factored into the ratings.
CML's business also remains prone to customer concentration risk
and the counterparty credit risk of its customers. The experience
of the promoters in dealing with the SPUs and the coverage of
CML's products under GoI-sponsored schemes provide some comfort.
Further, Fitch notes that given CML's current order book position,
capacity utilization and sales are expected to be low in FY10 as
well.
Positive rating factors include a decent increase in size and
revenues, coupled with the stabilization of capacity utilization
levels and operating margins. An inability to reduce the working
capital intensity or a fall in operating EBITDA margins,
deterioration in interest coverage ratios would constitute
negative rating triggers. Further, any unplanned capital
expenditure, or sustained reliance on short-term debt to fund
negative free cash flows would also constitute negative rating
guidance.
Incorporated in 1985, CML is a Noida-based company with production
capacity of 1.3 million meters and 0.5 million meter boxes per
annum. The company's manufacturing facilities are all located in
Noida (Uttar Pradesh). As of FYE09, the company had sales of
INR89 million and an operating EBTIDA margin of 1.8% (provisional
and unaudited).
CATHOLIC APOSTOLATE: CRISIL Rates INR220 Million Term Loan at 'B-'
------------------------------------------------------------------
CRISIL has assigned its rating of 'B-/Negative' to the term loan
facility of Society of Catholic Apostolate.
Facilities Ratings
---------- -------
INR220 Million Term Loan* B-/Negative (Assigned)
*Includes proposed amount of INR120 million
The rating reflects SCA's weak financial risk profile and limited
track record in the education sector. The impact of the rating
weaknesses are mitigated by the benefits SCA derives from its
adequate infrastructure.
Outlook: Negative
CRISIL believes that SCA's financial risk profile will remain poor
over the medium term due to negative accruals. The rating may be
downgraded if there is a steeper-than-expected deterioration in
the society's financial risk profile because of a significant drop
in student intake in its school or large debt-funded capital
expenditure. Conversely, the outlook may be revised to 'Stable',
if SCA is able to improve its revenues and profitability on the
back of higher student intake and increase in fees.
About the Soceity
SCA, registered in 2004, runs a school, St. Vincent Palloti
International Residential School. The school is located in
Rajnandgaon (Chhatisgarh) and is affiliated to the Central Board
of Secondary Education (CBSE) board. The school started its first
academic session in 2007-08 with around 115 students.
SCA reported a profit after tax (PAT) of INR(8.3) million for the
year ended March 31, 2009, as against a PAT of INR(0.04) million
in the prior year.
CHARISMA BUILDERS: CRISIL Rates INR415 Mln Long Term Loan at 'B+'
-----------------------------------------------------------------
CRISIL has assigned its rating of 'B+/Stable' to the bank
facilities of Charisma Builders.
Facilities Ratings
---------- -------
INR415.0 Million Long Term Loan B+/Stable (Assigned)
INR185.0 Million Overdraft Facility B+/Stable (Assigned)
The rating reflects Charisma's exposure to risks arising out of
geographic concentration of its activities, susceptibility of its
revenue stream to macro-economic factors and risks specific to
real estate sector. These weaknesses are, however, partially
offset by the benefits that Charisma derives from the experience
of its promoters in the real estate business.
Outlook: Stable
CRISIL believes that Charisma will maintain a stable business risk
profile over the medium term, backed by benefits derived from the
long-standing experience of the promoters. The outlook may be
revised to 'Positive' if the firm is able to demonstrate
significant improvement in revenues while maintaining its profit
margins; or to 'Negative' if the firm faces delay in completion of
projects, or lower than expected response from customers to its
projects.
About Charisma Builders
Set up as a proprietorship concern of Mr. Sudhir V Shetty in 1982,
Charisma constructs residential and commercial properties. Most
of its projects are located in the eastern suburbs of Mumbai.
Charisma reported a loss (PAT) of INR 170.6 million on net sales
of INR 289.3 million for the financial year ended March 31, 2009,
as against a PAT of INR 663.7 million on net sales of INR 1307.7
million for the financial year ended March 31, 2008.
DANDAPAT COLD: CRISIL Puts 'B' Rating on INR14.1 Million Term Loan
------------------------------------------------------------------
CRISIL has assigned its ratings of 'B/Stable/P4' to the bank
facilities of Dandapat Cold Storage Pvt Ltd, part of the Dandapat
group.
Facilities Ratings
---------- -------
INR74.8 Million Cash Credit Limits B/Stable (Assigned)
INR14.1 Million Working Capital B/Stable (Assigned)
Term Loan
INR1.1 Million Bank Guarantee P4 (Assigned)
The ratings reflect Dandapat group's weak financial profile marked
by high gearing, and exposure to risks relating to unfavourable
government regulations in the cold storage industry. These
weaknesses are, however, partially offset by the group's moderate
business risk profile.
For arriving at the ratings, CRISIL has combined the financials of
Dandapat and Rupasi Bangla Cold Storage Pvt Ltd, collectively
referred to as the Dandapat group. This is because Dandapat and
Rupasi are under a common management and in similar line of
business.
Outlook: Stable
CRISIL believes that the group will maintain a stable business
risk profile over the medium term on the back of average capacity
utilization, and increase in storage rents. The outlook may be
revised to 'Positive' if the group's gearing improves; or to
'Negative' if reduced cash accruals result in deterioration in
group's financial risk profile.
About the Group
Dandapat is a closely-held company, promoted in 1995 in Midnapore,
West Bengal by Mr. Ranjit Kumar Dandapat. The company is in the
business of storage and preservation of table potatoes, and has
capacities of 240,000 quintals. In order to increase capacities,
the promoter set up another unit under Rupasi in Hooghly district,
West Bengal, with capacities of 104,056 quintals.
The group reported a profit after tax (PAT) of INR 1.7 million on
net sales of INR 16 million for the year ended March 31, 2008, as
against a PAT of INR 3 million on net sales of INR 14 million for
the year ended March 31, 2007.
DECOR PAPER: CRISIL Rates Rs.170.00 Million Term Loan at 'B-'
-------------------------------------------------------------
CRISIL has assigned its 'B-/Negative/P4' ratings to the bank
facilities of Decor Paper Mills Ltd.
Facilities Ratings
---------- -------
INR50.00 Million Cash Credit B-/Negative (Assigned)
INR7.50 Million Stand By Line B-/Negative (Assigned)
of Credit
INR170.00 Million Term Loan B-/Negative (Assigned)
INR15.00 Million Bank Guarantee P4 (Assigned)
The ratings reflect the expected weakening in DPML's financial
risk profile, as the company has undertaken a large debt-funded
capital expenditure (capex) program, and the company's weak
liquidity. The ratings also factor in DPML's moderate scale of
operations and exposure to the cyclicality in the paper industry.
The impact of these weaknesses is mitigated by the group's
established market presence.
For arriving at its ratings, CRISIL has combined the financial and
business risk profiles of DPML, Bazargaon Paper and Pulp Mills
Ltd, Apex Trading Mill, and New Bombay Paper Mills Ltd. This is
because these entities have strong intra-group operational
linkages, and are under a common management and in the same line
of business.
Outlook: Negative
CRISIL expects DPML's financial risk profile to weaken further
over the medium term, because of its large debt-funded capex and
weak liquidity. The rating maybe downgraded if there is a steep
deterioration in the company's financial risk profile, on account
of lower-than-expected sales and profitability. Conversely, the
outlook may be revised to 'Stable' if the company's financial risk
profile improves, supported by an increase in its scale of
operations and profitability or improvement in capital structure.
About Decor Paper
DPML is a closely-held public limited company incorporated in 2007
by Surjabhan Agarwal, Jai Prakash Agarwal, and Sushil Kumar
Agarwal. It commenced commercial operations in December 2007.
DPML manufactures kraft paper ranging from 100 to 200 grams per
metre (GSM) of single layer and having burst factors of 16+ to
24+, which is used as a key ingredient in the manufacture of boxes
having industrial applications. The company has an installed
capacity of 150 tonnes per day (54,000 tonnes per annum [tpa]).
DPML's manufacturing facilities are located in Medak district of
Andhra Pradesh, and the manufacturing cycle is of 24 hours. The
main markets for the company are Chennai, Bengaluru, Mumbai, and
Hyderabad. It has undertaken a capex program to enhance its
capacity to 72,000 tpa, at a total estimated cost of INR72.5
million. It also plans to purchase additional machinery worth
INR25 million.
DPML, on a standalone basis, reported a provisional profit after
tax (PAT) of INR7 million on net sales of INR517 million for the
year ended March 31, 2009, against a PAT of INR0.9 million on net
sales of INR122 million in the prior year.
The group, on a consolidated basis, reported a provisional PAT of
INR17 million on net sales of INR910 million for the year ended
March 31, 2009, against a PAT of INR9.7 million on net sales of
INR477 million for the year ended March 31, 2008.
FINE STAR: Low Net Worth Cues CRISIL to Assign 'P4' Rating
----------------------------------------------------------
CRISIL has assigned its 'P4' rating to the various bank facilities
of Fine Star Diamonds.
Facilities Ratings
---------- -------
INR50.0 Million Packing Credit P4 (Assigned)
and Post-Shipment Credit
The rating reflects FSD's moderate financial risk profile marked
by average gearing and low net worth, small scale of operations,
high working capital requirements, and supplier concentration.
The impact of these weaknesses is mitigated by the benefits that
the firm derives from its promoters' experience in the diamond
manufacturing and trading business.
About Fine Star
Fine Star Diamonds is a proprietorship firm managed by Mr. Vinod
Kumar Jain in his capacity as Karta of a Hindu Undivided Family
(HUF). It is engaged in trading and manufacturing of cut and
polished diamonds. FSD reported a provisional net profit of
INR15.60 million on net sales of INR742.31 million for the year
ended March 31, 2009, against net profit of INR6.44 million on
sales of INR298.60 million in the prior year.
HEMA DYEING: CRISIL Assigns 'BB-' Ratings on Various Bank Loans
---------------------------------------------------------------
CRISIL has assigned its ratings of 'BB-/Stable/P4' to the bank
facilities of Hema Dyeing & Printing Mills Pvt Ltd (Hema Dyeing).
Facilities Ratings
---------- -------
INR34.4 Million Long Term Loan BB-/Stable (Assigned)
INR114.6 Million Proposed Long BB-/Stable (Assigned)
Term Bank Loan Facility
INR50.0 Million Cash Credit* BB-/Stable (Assigned)
INR1.0 Million Bank Guarantee P4 (Assigned)
* This includes the book debt sub limits of INR 40.0 Millions.
The ratings reflect Hema Dyeing's moderate financial risk profile,
marked by modest gearing and net worth, and the company's limited
presence in the intensely-competitive fabric manufacturing
industry. These weaknesses are, however, partially offset by the
benefits that Hema Dyeing derives from its promoters' experience
in the textiles business and established relationships with its
clients.
Outlook: Stable
CRISIL believes that Hema Dyeing will maintain a stable credit
risk profile over the medium term, on the back of adequate cash
accruals. The outlook may be revised to 'Positive' if the
company's revenues increase owing to improved realizations or
greater offtake of its products. Conversely, the outlook may be
revised to 'Negative' if the company's financial risk profile
deteriorates materially due to debt-funded capital expenditure, or
increase in working capital requirements.
About Hema Dyeing
Incorporated in 1994 by Mr. S V Ramarao, Hema Dyeing manufactures
fabric from a variety of yarn. In 2004, the company set up a
fabric manufacturing unit at Mahape (Maharashtra). M/s Padma
Priya Fabrics, a group entity, was merged with Hema Dyeing in
January 2009. Hema Dyeing has 102 weaving machines, and capacity
to produce around 7.2 million metres of fabric per annum. The
promoters also trade in fabric through another group company,
Kanti Textiles Pvt Ltd.
Hema Dyeing reported a profit after tax (PAT) of INR 3.3 million
on net sales of INR 51.3 million for the year ended March 31,
2008, as against a PAT of INR 0.4 million on net sales of INR 29.8
million for the year ended March 31, 2007.
HEMALATHA MILLS: CRISIL Places 'B' Rating on INR72.2-Mln LT Loan
----------------------------------------------------------------
CRISIL has assigned its ratings of 'B-/Negative/P4' to the bank
facilities of Hemalatha Mills Pvt Ltd.
Facilities Ratings
---------- -------
INR72.20 Million Long Term Loan B-/Negative (Assigned)
INR60.00 Million Cash Credit B-/Negative (Assigned)
INR10.00 Million Letter of Credit P4 (Assigned)
INR1.10 Million Bank Guarantee P4 (Assigned)
The ratings reflect HMPL's below-average financial risk profile
and the susceptibility of its operating margins to volatility in
cotton and cotton yarn prices, and to rising power costs. The
ratings also factor in HMPL's limited scale of operations in
cotton spinning and yarn weaving, and limited diversity in revenue
profile. These rating weaknesses are, however, partially offset
by the benefits that HMPL derives from the experience of its
promoters, and their long track record over the last three decades
in the textile spinning industry.
Outlook: Negative
CRISIL believes that HMPL's financial risk profile will weaken
further over the medium term, on account of unfavorable conditions
in the textile industry, and HMPL's poor liquidity. The rating
may be downgraded if the company's financial risk profile
deteriorates considerably, or if it undertakes large, debt-funded
capital expenditure. Conversely, the outlook may be revised to
'Stable' if HMPL's revenues and profitability improve, supported
by enhancement in scale of operations.
About Hemalatha Mills
Incorporated in 1999 at Tirupur, HMPL is in the business of
spinning cotton and weaving yarn. The company is managed by Mr. A
Kumarasamy. HMPL has 8064 spindles and 138 weaving machines, in
addition to two windmills with a combined capacity to generate
0.75 mega watts of power. HMPL reported a profit after tax (PAT)
of INR1 million for the year ended March 31, 2008, as against a
PAT of INR10 million the year ended March 31, 2007.
J P ENGINEERS: Low Net Worth Prompts CRISIL 'BB+' Rating
--------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank
facilities of J P Engineers.
Facilities Ratings
---------- -------
INR66 Million Overdraft Facility BB+/Stable (Assigned)
INR200 Million Letter of Credit* P4 (Assigned)
*Interchangeable with bank guarantee
The ratings reflect JPE's weak financial flexibility because of
its small size of net worth, and customer concentration risk. The
impact of these weaknesses is mitigated by the experience of JPE's
promoters in the commodity trading business.
Outlook: Stable
CRISIL expects JPE to maintain its business risk profile on the
back of its focus on improving its trading volumes, and its
established client relationships. CRISIL also believes that the
firm will maintain its current comfortable gearing levels. The
outlook may be revised to 'Positive' if JPE increases its scale of
operations by diversifying its client/market mix. Conversely, the
outlook may be revised to 'Negative' in case of deterioration in
the firm's profitability or capital structure, because of debt-
funded capital expenditure.
About J P Engineers
The New Delhi-based JPE is promoted by Mr. Jatinder Nath Jain and
his sons, Mr. Ravinder Nath Jain and Mr. Mohinder Jain. JPE has
been in the business of trading in aluminium since 1992. On
March 31, 2007, Mr. Jatinder Nath Jain retired from the firm and
since then Mr. Ravinder Nath Jain and Mr. Mohinder Jain have been
carrying on the business.
For the year ended March 31, 2008, JPE reported a profit after tax
(PAT) of INR17.6 million on net revenues of INR2946 million,
against INR11.8 million and INR1841 million, respectively, in the
previous year.
KINGFISHER AIRLINES: Posts INR16.09BB Annual Loss; Delays Salaries
------------------------------------------------------------------
The Times of India reported that Kingfisher Airlines Ltd said on
Wednesday it posted a net loss of INR16.09 billion on net sales of
INR52.7 billion for the year-ended March 31, 2009. Year-ago
figures were not immediately available, the Times said.
Meanwhile, the Economic Times reports that the carrier has warned
its 6,000 employees of a delay in salary.
Citing Kingfisher executive vice-president Hitesh Patel in an
e-mailed statement, the ET relates that the company asked its
employees to be prepared for delayed salaries and embarrassing
dealings with unpaid vendors in the coming days. According to the
ET, Mr. Patel said the company was in a tight situation regarding
finances and it had trimmed its fleet to 69 from 89 to cut costs.
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd, serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops. It maintains bases in major cities such as Delhi and
Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known
for its United Breweries unit, and the carrier shares the
Kingfisher brand with a popular Indian beer. UB Holdings also
owns a stake in another domestic carrier, Air Deccan, whose
operations it combined with Kingfisher Airlines in mid-2008.
Kingfisher Airlines began flying in 2005.
* * *
In the financial year ended June 30, 2007, Deccan Aviation
reported a net loss of INR4.2 billion, up 23% from the
INR3.41 billion loss incurred in FY 2006.
In the financial year ended March 31, 2008, Kingfisher Airlines
reported a net loss of INR1.89 billion.
KISSAN FATS: CRISIL Places 'BB-' Rating on INR184.2MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its rating of 'BB-/Stable/P4' to the various
bank facilities of Kissan Fats Limited.
Facilities Ratings
---------- -------
INR270.0 Million Cash Credit Limit BB-/Stable (Assigned)
INR184.2 Million Term Loan BB-/Stable (Assigned)
INR150.0 Million Letter of Credit P4 (Assigned)
The ratings reflect KFL's weak financial risk profile, and
exposure to risks relating to vulnerability to government policies
in edible oil industry and basmati rice industry. These
weaknesses are, however, partially offset by the promoter's
extensive track record in the edible oil industry.
Outlook: Stable
CRISIL believes that Kissan Fats Limited (KFL) will maintain its
position in the edible oil market on the back of its integrated
facilities for manufacture of edible oils. The outlook may be
revised to 'Positive' if the company consolidates its presence in
the basmati rice and edible oils segment by entering new markets,
thereby, improving its realizations and achieving higher-than-
expected profitability. Conversely, the outlook may be revised to
'Negative' in case of any further deterioration in the capital
structure or pressure on profitability.
About Kissan Fats
Kissan Fats Limited was promoted by Mr. Inderjeet Singh, a rice
trader based at Jalalabad (Punjab) in 2000; however within six
months of commencing operations, the company was sold to
Mr. Rajender Mittal. Mr. Mittal undertook various expansions in
the company and increased capacity of vanaspati/refinery to around
100 tonnes per day (tpd) from 50 tpd and added a new solvent
extraction plant of around 125 tpd. KFL trades in oils, vanaspati
ghee, and mustard oil under the brand, "CARE"; it also trades in
basmati rice.
The company has reported a profit after tax (PAT) of INR19 million
on net sales of INR 1686 million for the year ended March 31,
2009, as against a PAT of INR6 million on net sales of INR1848
million in the prior year.
NOEL PHARMA: CRISIL Assigns 'B+' Rating on INR85MM Cash Credit
--------------------------------------------------------------
CRISIL has assigned its ratings of 'B+/Stable/P4' to the bank
facilities of Noel Pharma.
Facilities Ratings
---------- -------
INR85 Million Cash Credit Limits B+/Stable (Assigned)
INR15 Million Letter of Credit P4 (Assigned)
The ratings reflect Noel's large working capital requirements, and
exposure to risks relating to intense competition in the
pharmaceutical industry. These weaknesses are, however, partially
offset by Noel's moderate business risk profile.
Outlook: Stable
CRISIL believes that Noel will benefit from the growth prospects
in the pharmaceutical industry. The outlook may be revised to
'Positive' if large cash accruals help enhance the firm's
financial flexibility over the medium term. Conversely, the
outlook may be revised to 'Negative' if large, debt-funded capital
expenditure leads to deterioration in the firm's financial risk
profile.
About Noel Pharma
Noel, set up in 1997 as a partnership firm, manufactures
pharmaceutical products, including ethical, generic, and over-the-
counter (OTC) drugs. Noel reported a profit after tax (PAT) of
INR48 million on net sales of INR419 million for the year ended
March 31, 2008, as against a PAT of INR43 million on net sales of
INR254 million in the prior year.
PATIDAR INDUSTRIES: CRISIL Rates INR100MM Cash Credit Limit at 'B'
------------------------------------------------------------------
CRISIL has assigned its rating of 'B/Stable' to the bank
facilities of Patidar Industries Pvt Ltd.
Facilities Ratings
---------- -------
INR100.0 Million Cash Credit Limit B/Stable (Assigned)
INR20.0 Million Overdraft Facility B/Stable (Assigned)
The rating reflects PIPL's weak financial risk profile, large
working capital requirements, and vulnerability to unfavourable
government regulations. The impact of the rating weaknesses are
mitigated by the benefits PIPL derives from the experience of its
promoters in the cotton industry.
Outlook: Stable
CRISIL believes that PIPL will maintain a stable financial risk
profile over the medium term backed by its promoters' experience
in the cotton industry. The outlook may be revised to 'Positive'
if the company is able to increase its revenues and profitability
leading to improvement in its financial risk profile. Conversely,
the outlook may be revised to 'Negative' in case PIPL reports
lower-than-expected operating margin.
About Patidar Industries
Incorporated in 1999, Patidar Industries Pvt Ltd is engaged in the
business of cotton ginning, pressing and manufacturing crude
cotton seed oil. It is based in Babra, Gujarat. The company's
plant has an installed capacity of processing and manufacturing
around 400 bales per day, and is operating at capacity utilisation
of 80 per cent.
PIPL reported a profit after tax (PAT) of INR1.6 million on net
sales of INR1115.2 million for the year ended March 31, 2008, as
against a PAT of INR2.8 million on net sales of INR1006.3 million
for the year ended March 31, 2007.
RUPASI BANGLA: Weak Financial Profile Cues CRISIL 'B' Ratings
-------------------------------------------------------------
CRISIL has assigned its ratings of 'B/Stable/P4' to the bank
facilities of Rupasi Bangla Cold Storage, part of the Dandapat
group.
Facilities Ratings
---------- -------
INR41.7 Million Cash Credit Limits B/Stable (Assigned)
INR9.8 Million Working Capital Term Loan B/Stable (Assigned)
INR22.1 Million Term Loan B/Stable (Assigned)
INR1.4 Million Bank Guarantee P4 (Assigned)
The ratings reflect Dandapat group's weak financial profile marked
by high gearing, and exposure to risks relating to unfavourable
government regulations in the cold storage industry. These
weaknesses are, however, partially offset by the group's moderate
business risk profile.
For arriving at the ratings, CRISIL has combined the financials of
Dandapat and Rupasi Bangla Cold Storage Pvt Ltd, collectively
referred to as the Dandapat group. This is because Dandapat and
Rupasi are under a common management and in similar line of
business.
Outlook: Stable
CRISIL believes that the group will maintain a stable business
risk profile over the medium term on the back of average capacity
utilisation, and increase in storage rents. The outlook may be
revised to 'Positive' if the group's gearing improves; or to
'Negative' if reduced cash accruals result in deterioration in
group's financial risk profile.
About the Group
Dandapat is a closely-held company, promoted in 1995 in Midnapore,
West Bengal by Mr. Ranjit Kumar Dandapat. The company is in the
business of storage and preservation of table potatoes, and has
capacities of 240,000 quintals. In order to increase capacities,
the promoter set up another unit under Rupasi in Hooghly district,
West Bengal, with capacities of 104,056 quintals.
The group reported a profit after tax (PAT) of INR 1.7 million on
net sales of INR 16 million for the year ended March 31, 2008, as
against a PAT of INR 3 million on net sales of INR 14 million for
the year ended March 31, 2007.
SANDHYA AQUA: CRISIL Puts 'B+' Rating on INR40MM Term Loan
----------------------------------------------------------
CRISIL has assigned its ratings of 'B+/Stable/P4' to the bank
facilities of Sandhya Aqua Exports Pvt Ltd.
Facilities Ratings
---------- -------
INR40 Million Term Loan B+/Stable (Assigned)
INR125 Million Packing Credit P4 (Assigned)
Limits*
INR10 Million Letter of Credit/ P4 (Assigned)
Bank Guarantee
INR150 Million Foreign Bills P4 (Assigned)
Discounting@
INR15 Million Proposed Short P4 (Assigned)
Term Bank Loan Facility
*Includes proposed amount of INR41 million
@Includes proposed amount of INR80 million
The ratings reflect Sandhya Aqua's weak financial risk profile,
and exposure to risks relating to increase in the prices of raw
materials, and fluctuations in the value of the Indian rupee.
These weaknessess are, however, partially offset by Sandhya Aqua's
average business risk profile.
Outlook: Stable
CRISIL believes that Sandhya Aqua will maintain a stable business
profile over the medium term, backed by healthy growth in
revenues, and the strong demand for Indian shrimps in the global
market. The outlook may be revised to 'Positive' if Sandhya
Aqua's business risk profile improves considerably owing to scale-
up in operations, and enhancement in margins and realizations.
Conversely, the outlook may be revised to 'Negative' if the
company undertakes large, debt-funded capital expenditure.
About Sandhya Aqua
Incorporated in 2005, Sandhya Aqua processes and exports cultured
shrimp. Exports are mainly to the European Union and USA, which
contributed more than 50 per cent to the company's revenues in
2008-09. The company's processing plant at Vijayawada (Andhra
Pradesh) has capacity to process 4000 tonnes of shrimp per annum.
Sandhya Aqua reported a profit after tax (PAT) of INR5 million on
net sales of INR345 million for the year ended March 31, 2009, as
against a PAT of INR3.2 million on net sales of INR256 million for
the year ended March 31, 2008.
SATYAM COMPUTER: Court Dismisses Petition Against CLB Order
-----------------------------------------------------------
The Andhra Pradesh High Court on Tuesday dismissed a petition
filed by a shareholder challenging the Company Law Board's order
to induct a strategic investor into Satyam Computer Services Ltd,
the Business Line reports.
According to the report, Justice V.V.S. Rao dismissed the petition
filed by Manohar Lal Sharma on the ground that the petition was
filed beyond the time limit (120 days) to prefer an appeal on the
CLB's order fixed by the Companies Act.
Mr. Rao said the court could not extend the period indicated in
the statute, the repor relates.
The report, citing Mr. Sharma's petition, states that Mr. Sharma
contended that the shareholders of Satyam, who were the real
owners of the company, were not consulted and a meeting of the
shareholders was not called for to discuss the issue.
Fraud Revelation
As reported in the Troubled Company Reporter-Asia Pacific, on
January 7, 2009, former Satyam Chairman Ramalinga Raju resigned
after saying he manipulated the company's accounts. Specifically,
Mr. Raju said that as of September 30, 2008, the company's balance
sheet carries:
(1) inflated (non existent) cash and bank
balances of 50.40 billion rupees (US$1.04 billion)
(as against 53.61 billion reflected in the books);
(2) an accrued interest of 3.76 billion rupees which
is non existent;
(3) an understated liability of 12.30 billion rupees
on account of funds arranged by Mr. Raju; and
(4) an overstated debtors position of
4.90 billion rupees (as against 26.51 billion
reflected in the books).
Mr. Raju's confession prompted investigations into the company by
different entities including Andhra Pradesh state police, the U.S.
Securities and Exchange Commission and the Securities and Exchange
Board of India. Several groups also considered filing class
action suits against the company.
A three-member board was subsequently created by the government
which appointed KPMG and Deloitte Touche Tohmatsu for re-
evaluation of the software company's books.
Mr. Raju was later found to have invented more than one quarter
of Satyam's workforce and used fictitious names to siphon INR200
million (US$4.1 million) a month out of the company.
The TCR-AP reported on March 9, 2009, that Satyam won approval to
sell stake in itself, as the company seeks to restore investor
confidence and stem client defections.
Satyam said it received approval from the Securities and Exchange
Board of India to facilitate a global competitive bidding process
which, subject to receipt of all approvals, contemplates the
selection of an investor to acquire a 51% interest in the company.
On April 14, 2009, the TCR-AP reported that Tech Mahindra Limited
emerged as the top bidder with an offer of INR58 a share for a 31
per cent stake in Satyam Computer Services Limited, beating strong
rival L&T. Tech Mahindra would acquire the stake in an all-cash
deal, followed by an open offer for a 20 percent stake to take
management control of the company.
On June 21, 2009, Satyam unveiled its new brand identity,
"Mahindra Satyam."
About Satyam Computer
Headquartered in Secunderabad, India, Satyam Computer Services
Limited (BOM:500376) -- http://www.mahindrasatyam.net/-- is a
global information technology (IT) services provider, offering a
range of services, including systems design, software development,
system integration and application maintenance. Satyam offers a
range of IT services to its customers, including application
development and maintenance, consulting and enterprise business
solutions, extended engineering solutions and infrastructure
management services. The Company provides services to customers
from various industries, including insurance, banking and
financial services, manufacturing, telecommunications,
transportation and engineering services. Satyam BPO Limited
(Satyam BPO), a majority-owned subsidiary of the Company is
engaged in providing business process outsourcing (BPO) services.
Satyam operates in two segments: IT services and BPO services. As
of July 6, 2009, Tech Mahindra Limited had acquired approximately
31.04% of the Company's outstanding shares of common stock.
SHREE RAM: CRISIL Puts 'BB' Rating on INR65MM Cash Credit Facility
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4' to the bank
facilities of Shree Ram Shipping Industries Pvt Ltd.
Facilities Ratings
---------- -------
INR65.0 Million Cash Credit Facility BB/Stable (Assigned)
INR535.0 Million Letter of Credit P4 (Assigned)
The ratings reflect SRSIPL's small scale of operations in cyclical
and fragmented shipping industry, exposure to volatility in
foreign exchange rates and vulnerability to government
regulations. The rating weaknesses are mitigated by the benefits
SRSIPL derives from the industry experience of its promoters and
the healthy growth prospects in the ship-breaking industry.
Outlook: Stable
CRISIL believes that SRSIPL will maintain a stable credit risk
profile over the medium term backed by the experience of its
promoters and healthy growth prospects in the ship-breaking
industry. The outlook maybe revised to 'Positive' if the
company's profitability and scale of operations improve backed by
healthy growth prospects of the ship breaking industry in the
medium term. Conversely, the outlook maybe revised to 'Negative'
in case SRSIPL's profitability declines because of significant
decline in the price of steel or adverse foreign exchange rate
fluctuations.
About Shree Ram
SRSIPL, part of the Shree Ram group, is engaged in ship-breaking
activities. The company has a capacity to break ships ranging from
800 tonnes to 50,000 tonnes in its 30 metre plot at Alang
(Gujarat). SRSIPL imports ships, breaks them into steel plates
and sells the same across India through a network of brokers.
SRSIPL reported a profit after tax (PAT) of INR 3.5 million on net
sales of INR 145.9 million for the financial year ended March 31,
2008, as against a PAT of INR 1.6 million on net sales of
INR2.8 million for the financial year ended March 31, 2007.
SUN PHARMACEUTICAL: Profit Drops 64% on Suits Against U.S. Unit
---------------------------------------------------------------
Sun Pharmaceutical Industries Limited reported a 64% drop in its
net profit during the April-June quarter of this year on account
of the U.S. action against its US-based subsidiary, Caraco
Pharmaceutical, The Times of India reports.
The Company posted a INR1.64 billion consolidated net profit for
the April-June quarter, compared with INR5.01 billion net profit
from a year earlier. Consolidated net sales fell 24% to
INR7.88 billion from INR10.42 billion a year earlier.
The report states that the U.S. authorities seized medicines
produced by generic drugmaker Caraco at its Michigan facilities
following violations of manufacturing standards. According to the
report, the drugs included generic versions of heart, pain and
psychiatric medicines.
Caraco sales were lower by 56% compared to same quarter last year,
the report says.
Sun Pharmaceutical Industries Limited is an international
specialty pharmaceutical company, with a presence in 30 markets.
The Company also makes active pharmaceutical ingredients. Its
products are prescribed in chronic therapy areas like cardiology,
psychiatry, neurology, gastroenterology, diabetology and
respiratory. During the year ended March 31, 2008, 37 new
products were brought to market and 16 used a technology-based
differentiation or were complex, and 15 were integrated to active
pharmaceutical ingredients (API). In September 2007, it announced
that the United States Food and Drug Administration (FDA) has
granted approval for its abbreviated new drug application (ANDA)
for Methimazole Tablets USP, five and 10 milligram. In
October 2007, the FDA has granted final approval for the Company's
ANDA to market its generic version of Novartis Trileptal,
oxcarbazepine tablets. In October 2007, it announced that the FDA
has granted final marketing approval for its Rivastigmine Tartrate
drug.
TATA STEEL: First Quarter Profit Declines 47%
---------------------------------------------
Tata Steel Limited posted a worse-than-expected 47% fall in first-
quarter net profit on lower prices, Bloomberg News reports.
Net income, excluding contribution from U.K. unit Corus, fell to
INR7.9 billion (US$163 million) in the three months ended June 30
from INR14.9 billion a year earlier, Bloomberg says citing Tata
Steel in a statement. Sales fell 10 percent to INR55.5 billion.
"The global steel scenario is improving," the report quoted
Niraj Shah, an analyst at Centrum Broking Pvt. in Mumbai, as
saying. "We can expect better results from steel companies as
prices are stabilizing, while raw material costs have fallen."
Tata Steel managing director B. Muthuraman told reporters that the
Company's sales in this quarter will increase from the previous
three months, the report says.
Bloomberg relates Tata Steel's raw material costs climbed 52% in
the June quarter, while interest expenses rose to INR3.42 billion
from INR2.42 billion a year earlier.
About Tata Steel Limited
Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/-- is a diversified steel producer. It
has operations in 24 countries and commercial presence in over 50
countries. Its operations predominantly relate to manufacture of
steel and ferro alloys and minerals business. Other business
segments comprises of tubes and bearings. On April 2, 2007, Tata
Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1,
which in turn is a subsidiary of Tata Steel completed the
acquisition of Corus Group plc. Tata Metaliks Limited, which is
engaged in the business of manufacturing and selling pig iron,
became a subsidiary of the Company with effect from February 1,
2008. In September 2008, the Company acquired a 7.3% interest in
Riversdale Mining Ltd.
* * *
As reported in the Troubled Company Reporter-Asia on June 10,
2009, Moody's Investors Service downgraded the corporate family
rating of Tata Steel Ltd to Ba3 from Ba2. Moody's said the rating
outlook is stable.
TATA STEEL: Raises US$500 Million Via GDR Sale in London
--------------------------------------------------------
The London Stock Exchange welcomed Tata Steel Limited to its
Professional Securities Market. On admission Tata Steel raised
US$500 million, the largest ever Indian Global Depository Receipt
offering in London, and one of the biggest new equity issues to be
conducted by a company outside its home market on any global
exchange in the last 12 months.
Commenting on the equity raising, Mr. B Muthuraman, Managing
Director of Tata Steel, said, "The equity raising exercise and the
listing on the London Stock Exchange marks a significant milestone
in the company's capital raising journey and demonstrates
investors' interest in the company's strategic direction."
Xavier Rolet, Chief Executive, London Stock Exchange Group, said,
"As a globally ambitious Indian company, with significant
operations in Europe, Tata Steel is a high profile addition to our
markets. Tata Steel's listing demonstrates that London remains
the market of choice for companies from across the globe seeking
to access a truly global pool of international investment capital
and benefit from trading on the International Order Book, the
world's most liquid trading platform for GDRs".
About Tata Steel Limited
Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/-- is a diversified steel producer. It
has operations in 24 countries and commercial presence in over 50
countries. Its operations predominantly relate to manufacture of
steel and ferro alloys and minerals business. Other business
segments comprises of tubes and bearings. On April 2, 2007, Tata
Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1,
which in turn is a subsidiary of Tata Steel completed the
acquisition of Corus Group plc. Tata Metaliks Limited, which is
engaged in the business of manufacturing and selling pig iron,
became a subsidiary of the Company with effect from February 1,
2008. In September 2008, the Company acquired a 7.3% interest in
Riversdale Mining Ltd.
* * *
As reported in the Troubled Company Reporter-Asia on June 10,
2009, Moody's Investors Service downgraded the corporate family
rating of Tata Steel Ltd to Ba3 from Ba2. Moody's said the rating
outlook is stable.
UNION BANK: Fitch Affirms Individual Rating at 'C/D'
----------------------------------------------------
Fitch Ratings has affirmed Union Bank of India's foreign currency
Issuer Default Rating at 'BBB-', National Long-term rating at 'AA+
(ind)', Individual rating at 'C/D', Support rating at '2', Support
Rating Floor at 'BBB-', INR10 billion lower tier 2 bonds at 'AA+
(ind)', INR10 billion upper tier 2 bonds at 'AA(ind)' and
INR3 billion perpetual tier 1 notes at 'AA(ind)'. The Outlook is
Stable.
The rating affirmations reflect Fitch's expectation that UBI will
be able to maintain satisfactory credit metrics while navigating
the downturn. Fitch expects the Indian banking system's asset
quality and profitability to deteriorate in FY10 and FY11, and
that UBI's gross NPL and ROA ratios would also come under
pressure, broadly in line with the system. The Long-term foreign
currency IDR is also at the Support Rating Floor.
Under a special regulatory dispensation Indian banks were allowed
to restructure loans until Q110 and report them as standard assets
to help borrowers tide over the economic downturn. UBI
aggressively restructured 5.8% of loans by rescheduling payments
for 12 to 24 months. Provisioning in FY11 may increase
significantly if a sizeable portion of these loans become
substandard owing to difficult business conditions. Strong
capitalization and provisions (including general provisions),
which cover 106% (FY09) of gross NPLs protect ratings amid asset
quality concerns.
Fitch expects a moderate dip in net interest margin because loans
have been repriced downwards by 200 bp since H209. Like most
banks, UBI's deposit rates were high until H109 and these deposits
are expected to reprice downwards in FY10. However, the fall in
deposit cost would be limited if interest rates increase in the
near-term. Mark-to-market provisions on debt securities portfolio
would increase because bond yields may harden, putting additional
pressure on profitability.
UBI plans to maintain Tier 1 and total capital ratio at 8% and
13%, respectively. As such the bank will keep the limit of
innovative perpetual debt instruments (up to 15% of total tier 1
capital) fully utilized, as retained earnings will not be able to
support growth. The bank also has large headroom to raise Tier 2
capital.
UBI is the ninth-largest bank in India by assets with a market
share of more than 3% in loans and deposits. It has a pan-Indian
presence with a network of 2638 branches and 1995 ATMs. It is
55.43%- owned by the government and listed on the domestic
bourses.
VENKATA KRISHNA: Stretched Liquidity Cues CRISIL 'B' Rating
-----------------------------------------------------------
CRISIL has assigned its ratings of 'B/Stable/P4' to the bank
facilities of Venkata Krishna Constructions Pvt Ltd.
Facilities Ratings
---------- -------
INR8.00 Million Corporate Loan B/Stable (Assigned)
INR17.00 Million Cash Credit Limit B/Stable (Assigned)
INR 40.00 Million Bank Guarantee Limit P4 (Assigned)
The ratings reflect VCPL's below-average financial risk profile
marked by stretched liquidity, and its exposure to risks relating
to the limited diversity in its revenue profile and to volatility
in raw material prices. The ratings also reflect the company's
small scale of operations, and its vulnerability to intense
competition in the infrastructure construction industry. These
weaknesses are partially offset by the benefits that the company
derives from its promoters' experience in the construction
industry, and its established relationships with its customers.
Outlook: Stable
CRISIL expects VCPL to maintain a stable credit risk profile over
the medium term, on the back of its established presence in the
infrastructure construction industry. The outlook may be revised
to 'Positive' if the company scales up its operations, and
simultaneously diversifies its revenue base and improves its
financial risk profile. Conversely, the outlook may be revised to
'Negative' if the company undertakes large, debt-funded capital
expenditure, fails to arrange funds to meet its additional working
capital requirements, or if its relationships with major customers
deteriorate.
About Venkata Krishna
Set up in 2004 by Mr. G Subhas Chandra Bose and based in
Hyderabad, VCPL undertakes construction of infrastructure
projects, primarily in the irrigation sector.
VCPL had an estimated profit after tax (PAT) of INR14 million on
net sales of INR392 million for the year ended March 31, 2009, as
against a PAT of INR8 million on net sales of INR421 million for
the year ended March 31, 2008.
=================
I N D O N E S I A
=================
TELEKOMUNIKASI INDONESIA: Net Profit Falls 4% Percent in H1
-----------------------------------------------------------
PT Telekomunikasi Indonesia Tbk has filed its unaudited financial
results for the six months ended June 30, 2009, to the Capital
Market Supervisory Agency (BAPEPAM-LK).
In the first half of 2009, the Company's operating income
decreased by IDR891 billion or 7.1% from IDR12.46 trillion to
IDR11.57 trillion. The Company's consolidated net income
decreased by IDR254 billion or 4.0% as compared to prior period
from IDR6.29 trillion to IDR6.04 trillion. On the other hand,
EBITDA increased by IDR42 billion from IDR18.21 trillion to
IDR18.25 trillion.
In the first half of 2009, operating expenses increased by
IDR1.35 trillion or 7.6% as compared to prior period. The
increase was mainly contributed by increase in depreciation and
maintenance and operational expenses by IDR902 billion and
IDR806 billion, respectively. However, the Company recorded a
decrease in personnel expenses by IDR523 billion.
In the first half of 2009, Cellular revenue increased by
IDR1.34 trillion or 11.1% as compared to prior period. Meanwhile,
fixed line and interconnection revenue decreased by IDR996 billion
or 18.9% and IDR548 billion or 12.5%, respectively. Data,
Internet and IT Services revenue and other telecommunications
services revenues increased by IDR497 billion and IDR197 billion.
Total operating revenue increased by IDR462 billion or 1.5% as
compared to prior period.
As of June 30, 2009, the Company's total assets increased by
IDR8.24 trillion or 9.6% as compared to prior period from
IDR85.93 trillion to IDR94.17 trillion. The Company recorded an
increase in operating revenues by IDR462 billion or 1.5% as
compared to prior period from IDR30.21 trillion to
IDR30.67 trillion, which was mainly resulted from increase in
cellular revenue, data, internet and information technology
services revenue, network revenue and other telecommunications
services revenue.
Telkom's President Director, Rinaldi Firmansyah, said "We are able
to constantly enhance our network capacity and quality, which
contributed to the growth of our operating revenue, even despite
the significantly lower tariff in 1H/2009 compared to same period
in 2008.
Telkom's Director of Finance, Sudiro Asno, added "In addition to
operating performance, the strengthening of the Rupiah exchange
rate have also provided a positive impact to the Company's bottom
line with exchange profit amounting to IDR550 billion in 1H/2009."
About PT Telkom Indonesia
Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk
-- http://www.telkom-indonesia.com/-- provides local and long
distance telephone service in Indonesia. Known as Telkom, the
company also offers fixed wireless service, leased lines, and
data transport through affiliates.
* * *
P.T. Telekomunikasi Indonesia Tbk continues to carry 'BB' Long-
term foreign and local currency Issuer Default ratings from Fitch
Ratings with stable outlook. The ratings were affirmed by Fitch
in November 2008.
=========
J A P A N
=========
TOSHIBA CORP: Q1 2009 Net Loss Widens to JPY57.8 Billion
--------------------------------------------------------
Toshiba Corporation disclosed its consolidated results for the
first quarter ended June 30, 2009.
The company reported a net loss of JPY57.8 billion for the quarter
ended June 30, 2009, compared with a net loss of JPY11.6 billion
in the same period in 2008.
Toshiba's consolidated net sales were JPY1.33 trillion, a decrease
of JPY278.4 billion from the same period of the previous year.
Consolidated operating loss was JPY37.6 billion, an improvement of
JPY36.4 billion from the previous period mainly in electronics
devices and digital products.
Digital products and electronics devices saw overall sales
decrease. The digital media network business saw lower sales,
mainly in TVs and hard disk drives, due to lower demand and
significant price erosion resulting from the rapid decline into
global recession. The PC and LCD businesses also saw weak sales.
The company's quarterly consolidated financial statements are
based on U.S. Generally accepted accounting principles.
Toshiba Corp. posted JPY343.6 billion net loss in the fiscal year
ended March 31, 2009, the Troubled Company Reporter-Asia Pacific
reported on May 12, 2009, citing the Wall Street Journal. For the
fiscal year ending March 31, 2010, the company forecasts a net
loss of JPY50 billion.
Toshiba Corporation (TYO:6502) --- http://www.toshiba.co.jp/---
is a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others. The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-scale
integrated (LSI) circuits for image information systems and liquid
crystal displays (LCDs), among others. The Social Infrastructure
segment offers various generators, power distribution systems,
water and sewer systems, transportation systems and station
automation systems, among others. The Home Appliance segment
offers refrigerators, drying machines, washing machines, cooking
utensils, cleaners and lighting equipment. The Others segment
leases and sells real estate.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
May 20, 2009, Moody's Investors Service assigned a rating of Ba1
to JPY180 billion The 1st Series Unsecured Interest Deferrable and
Early Redeemable Subordinated Bonds solely for qualified
institutional investors (Tekikaku Kikan Toshika Gentei) issued by
Toshiba Corporation. The rating outlook is negative.
* JAPAN: Bankruptcies in Auto Industry-Related Firms Up 50.8%
-------------------------------------------------------------
Kyodo News, citing Teikoku Databank, reports that the number of
bankrupt companies related to the auto industry such as parts
suppliers and secondhand car dealers rose 50.8% in the first half
of 2009 from the year before to 273.
The combined amount of debts left by these firms during the
six-month period more than doubled to JPY106.1 billion from
JPY47.9 billion in the same period of 2008, Kyodo New says.
According to the report, the agency said that of the 273 cases,
131 were failures of companies in the automobile retail and
wholesale businesses, with many secondhand dealers having faced
difficulties in getting bank loans to finance their continued
operations.
=========
K O R E A
=========
SSANGYONG MOTOR: May Liquidate Business if Strike Continues
-----------------------------------------------------------
Ssangyong Motor Co. said it may seek liquidation if workers
continue to occupy its factory, after negotiations with the labor
union failed yesterday, Bloomberg News reports.
"If law isn't being applied strictly over the illegal factory
occupation by the labor union and its violent actions, we cannot
but review a possible liquidation," Bloomberg News cited Ssangyong
in a statement Sunday.
According to the report, the management of Ssangyong said three-
day negotiations with its labor union collapsed over differences
on how many workers will be retained.
The Troubled Company Reporter-Asia Pacific reported on Jan. 12,
2009, that Ssangyong filed for receivership with a Seoul district
court in a bid to stave off a complete collapse. On Feb. 6, 2009,
the TCR-AP reported the Seoul Central District Court accepted
Ssangyong's application to rehabilitate under court protection.
The court named former Hyundai Motor Co. executive Lee Yoo-il and
Ssangyong executive Park Young-tae to run the automaker.
The TCR-AP, citing The Auto Channel, reported on May 25, 2009,
that a South Korean court approved Ssangyong Motor's restructuring
plan. The Auto Channel said the court confirmed a Samil
PricewaterhouseCoopers assessment that the manufacturer had a
greater value as a going concern than its liquidated value,
and ordered Ssangyong to submit its full restructuring plan by
mid-September.
Unionized workers at Ssangyong Motor launched on May 22 a full
strike against the company's massive job-cut plan as part of a
restructuring plan. Ssangyong won permission to enter bankruptcy
protection in return for conducting restructuring that calls for
36 percent of its workforce, or 2,646 employees, to be cut,
according to The Korea Herald. Since then, some 1,670 workers
have left the company through voluntary retirement, while the
remaining 976 workers have gone on strike, the Herald said.
About Ssangyong Motor
Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co.
Ltd. -- http://www.smotor.com/-- is a manufacturer of automobiles
primarily engaged in production of sports utility vehicles (SUVs)
and recreational vehicles (RVs). The company's production is
grouped into four lines: SUVs under brand names REXTON, KYRON and
ACTYON; sports utility trucks (SUTs) under the brand name ACTYON
Sports; passenger cars under brand name Chairman, and multi-
purpose vehicles (MPVs) under the brand name Rodius. It also
provides automobile parts such as coolers, diesel engines and
others.
* SOUTH KOREA: To Sell 9 Public Firms by Year's End
---------------------------------------------------
South Korea plans to sell nine state-run companies by the end of
this year as part of efforts to enhance business efficiency in the
nation's public sector, Yonhap News Agency reports citing the
finance ministry.
The government unveiled plans last year to sell its stakes in a
total of 24 public enterprises in order to help reform the public
sector, the news agency says.
The Ministry of Strategy and Finance, as cited by Yonhap, says
that the nine firms whose stakes will be sold by year's end
include:
-- Korea Real Estate;
-- Grand Korea Leisure Co.;
-- Farmland Improvement & Modernization, Investment & Trust;
-- Korea District Heating Corp; and
-- Korea Power Engineering Co.
Of these publice firms, the finance ministry said, it has
completed selection of preferred negotiating partners for two
companies, Yonhap relates.
====================
N E W Z E A L A N D
====================
PROVENCOCADMUS: Shareholders Decline Further Funding
----------------------------------------------------
ProvencoCadmus Limited said some of its largest shareholders have
declined to fund further working capital.
In an update to the stock exchange, ProvencoCadmus chairman
Rick Christie said other shareholders, and broader restructuring
avenues are still being pursued.
"The group continues to face risk and uncertainty with its
forecast cash flows. The payments business is continuing to trade
positively," Mr. Christie said.
As reported in the Troubled Company Reporter-Asia Pacific July 30,
2009, ProvencoCadmus Limited said it is seeking expressions of
interest from potential investors to anchor its capital
restructure. The Company is also working towards implementing a
business plan focused on the payments technology business.
The Company said that following review of the short term outlook
and cash flows, its Board had determined additional funding is
urgently required in order to support working capital needs prior
to the capital raise being completed.
The Company said it is currently working with its bank and seeking
additional, short term support from its shareholders.
As reported in the TCR-AP on Sept. 4, 2008, ProvencoCadmus posted
a net loss of NZ$36.3 million after restructuring costs, IP
impairment and write off of tax losses for the year ended June 30,
2008.
The Company said that merger between Provenco and Cadmus was
finalized on May 8, 2008, and the annual result includes a full
year for Provenco and the last two months of the 2008 financial
year for Cadmus.
The Group reported revenues of NZ$160.9 million and a positive
operating cash flow position of NZ$9.8 million for the 12 months
ended June 30, 2008. In line with market guidance given in
June 2008, the Group delivered a NZ$9.9 million deficit before
interest, tax, depreciation, amortization and impairment (EBITDA
and impairment). NZ$3 million of this amount represents costs
associated with the merger, restructuring and acquisition
activity. The balance of NZ$6.9 million represents the trading
deficit for the year.
Mr. Christie said "the 2008 financial year has been challenging
for the company and the overall financial loss of NZ$36.3 million,
after asset impairment and adjustments to taxation assets, is very
disappointing."
About ProvencoCadmus
Based in New Zealand, ProvencoCadmus Limited formerly Provenco
Group Limited (NZX:PVO)-- http://www.provencocadmus.com/ --
designs, builds, distributes and services payment and transaction
solutions. In Australasia, the company supplies payments and
transaction technology, countertop, mobile and wireless retail
hardware, and globally it supplies transaction, forecourt and site
management systems for the retail oil industry. It has operations
in 25 countries across five continents. On May 8, 2008, Provenco
Group Limited (PVO) and Cadmus Technology Limited (CTL) completed
their merger, with the merged company adopting the interim name of
ProvencoCadmus.
*********
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 ***