/raid1/www/Hosts/bankrupt/TCRAP_Public/100120.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
Wednesday, January 20, 2010, Vol. 13, No. 013
Headlines
A U S T R A L I A
ALIWELCH INSTITUTE: In Voluntary Administration; License Cancelled
BABYCO GROUP: Liquidator Sells Business to Australian Yarn
CYTOPIA LIMITED: Set to Quit ASX Listing Next Month
INTERNATIONAL POWER: Agrees to Rollover AU$445-Mil. Debt
* AUSTRALIA: Announces Corporate Insolvency Law Reform Package
C H I N A
SINOBIOPHARMA INC: Earns US$1.07 Million in November 30 Quarter
H O N G K O N G
GLOBAL COMMERCE: Court to Hear Wind-Up Petition on March 10
GOOD HUGE: Court to Hear Wind-Up Petition on March 3
GOLDCOME INDUSTRIAL: Yu and Sutton Appointed as Liquidators
GREAT SAFE: Court to Hear Wind-Up Petition on January 27
HONGKONG MAIZE: Creditors' Proofs of Debt Due February 10
HUGE MAX: Members' Final Meeting Set for February 26
JACKEL SERVICES: Members' Final Meeting Set for February 19
KAI NGAI: Creditors' Proofs of Debt Due January 29
KEEN GLORY: Court Enters Wind-Up Order
KIM SUM: Creditors' Proofs of Debt Due February 15
LUNG HING: Court to Hear Wind-Up Petition on February 24
NATURAL WOOD: Court to Hear Wind-Up Petition on March 10
NEWS DATA: Commences Wind-Up Proceedings
OCTAGON GREATER: Members' Final General Meeting Set for Feb. 19
ORGANIZATION SEARCH: Chen and Wong Step Down as Liquidators
SEA CDO: Moody's Takes Rating Actions on Various Classes Notes
I N D I A
ALFA TRANSFORMERS: CRISIL Cuts Rating on INR57.5MM Loan to 'BB'
DWARIKA PROJECTS: CRISIL Lifts Rating on INR100MM Loan to 'BB+'
ESKAY DYESTUFFS: CRISIL Puts 'BB+' Ratings on Various Bank Debts
ENSEMBLE INFRASTRUCTURE: CRISIL Affirms 'D' Ratings on Debts
PARAS HEALTHCARE: CRISIL Places 'LBB' Rating on INR103MM Loans
GULSHAN HOMZ: CRISIL Rates INR150 Mil. Term Loan at 'B+'
HINDUJA FOUNDRIES: ICRA Reaffirms 'LBB+' Rating on Bank Debts
PORBANDAR COAL: CRISIL Assigns 'BB' Rating on INR17.6MM Loan
RAJASTHAN TUBE: CRISIL Reaffirms 'B' Rating on Bank Facilities
ROSE GEMS: CRISIL Upgrades 'P4+' Ratings on Various Bank Debts
SJ EXPORTS: CRISIL Rates INR105MM Packing Credit at 'P4+'
SAVIO CERAMICA: ICRA Assigns 'LBB' Rating on INR109.7MM Loans
SHASHI CABLES: ICRA Rates INR9.3 Mil. Term Loan at 'LBB+'
SPICEJET LTD: Plans to Raise Up to US$75 Mil. to Fund Expansion
I N D O N E S I A
LISTRINDO CAPITAL: Unsecured Notes Won't Affect Moody's Ba2 Rating
J A P A N
JAPAN AIRLINES: Files for Bankruptcy Before Tokyo District Court
NEC ELECTRONICS: Quarterly Operating Loss Likely to Narrow
K O R E A
LG TELECOM: Fitch Upgrades Issuer Default Rating From 'BB+'
M A L A Y S I A
AXIS INC: Receives Writ of Summons from OCBC Al-Amin Bank
AXIS INC: Receives Writ of Summons from OCBC Bank
N E W Z E A L A N D
BIKEHQ: Goes Into Liquidation Amid Declining Sales
EASY MIND: Waikato and Coromandel Branches Sold
INDEPENDENT MAGAZINE: Placed in Voluntary Administration
S I N G A P O R E
AGROSIN PRIVATE: Court to Hear Wind-Up Petition on February 5
ALLANDES CORPORATION: Meetings Set for January 29
IPACS COMPUTER: Creditors' Proofs of Debt Due February 1
TJ COSMETICS: Creditors Get 49.69%% Recovery on Claims
V I E T N A M
* Moody's Assigns 'Ba3' Foreign Currency Rating on Vietnam
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A U S T R A L I A
=================
ALIWELCH INSTITUTE: In Voluntary Administration; License Cancelled
------------------------------------------------------------------
Williamstown-based private college AliWelch Institute has had its
license cancelled after going into voluntary administration, The
Age reports.
AliWelch, which received Federal Government money to train
students, lost its license to teach domestic students last week
after going into voluntary administration last month, the report
says.
According to the Age, the Federal Education Department said only
296 of 607 federally funded students had completed training over
several years. But Victorian Registration and Qualifications
Authority records showed there were only 20 Victorian students at
the time it closed.
The report says the closure brings to 12 the number of colleges in
Victoria that have shut since July because of a failure to comply
with regulations or for financial reasons.
Aliwelch Pty Ltd, operating as AliWelch Institute, is a Registered
Training Organization offering programs under 2 main streams:
academic framework (full-time studies) and competency module-based
(part-time studies).
BABYCO GROUP: Liquidator Sells Business to Australian Yarn
----------------------------------------------------------
The retail chain of the baby nursery furniture and manchester
products business BabyCo Group has been sold to a private
investor, Australian Yarn Pty Ltd, for an undisclosed sum, BabyCo
liquidators Tim Norman, Simon Cathro and Sal Algeri, of Deloitte
said in a statement.
The liquidators said six stores, 45 jobs and a well known
Australian retail brand have been preserved as a result of the
sale.
The agreement to buy the business was reached on January 18, 2010,
and provides for the management of Australian Yarn Pty Ltd to
begin operating the business immediately under license. It also
provides for ongoing employment for the 45 loyal members of the
staff who have been employed by the business throughout the
liquidation process.
Messrs. Norman, Cathro and Algeri were originally appointed as
Voluntary Administrators of Swallow Baby Carriages Pty Ltd and
Baby Holdings Pty Ltd (both trading as BabyCo) on August 28, 2009,
and as Liquidators on December 4, 2009. The Liquidators have
continued trading the business during the sale period and have
completed a significant number of outstanding customer orders over
the five month period.
The sale includes these stores:
* Rowville (Victoria)
* Highpoint (Victoria)
* Knox (Victoria)
* Wetherill Park (NSW)
* Underwood (Qld)
* St Mary's (SA).
"The Liquidators would like to thank employees, suppliers and
customers for their patience and support during the course of the
administration and liquidation," said Tim Norman. "The new
owners' existing retail and wholesale experience should provide a
foundation for their plans to continue to operate the six open
stores. It is our understanding that the additional stores that
have been closed temporarily during the administration will also
be reviewed by the new owners."
Mr. Norman advised that remaining creditors to Swallow Baby
Carriages Pty Ltd and Baby Holdings Pty Ltd will be provided with
a further creditors report in due course to outline the findings
of the Liquidators in this appointment.
Established in November 1970, The BabyCo Group --
http://www.babyco.com.au/is a nursery furniture and Manchester
retailer based in Australia. It has 22 stores located in
Victoria, New South Wales, Queensland and South Australia and
employs approximately 70 full time staff.
CYTOPIA LIMITED: Set to Quit ASX Listing Next Month
---------------------------------------------------
Olga Galacho at the Herald Sun reports that Cytopia Ltd. is likely
to be the first biotech firm to quit the stock exchange this year
after its approved $13 million merger deal with YM Bioscience was
lodged with the Australian Securities and Investments Commission.
Cytopia's shares, which traded for the last time on January 18, is
due to delist in the first week of February, the report says.
Chief executive Andrew Macdonald, who will continue to lead
Cytopia, told BusinessDaily the company would continue existing
operations at its Richmond laboratories to take its two lead
products -- a vascular disrupting agent for solid tumors and an
inhibitor compound to treat blood disorders and cancers -- through
advanced clinical trials, according to the Herald Sun.
The company's share register will close next Monday, February 1,
to calculate shareholder entitlements to new YM shares.
As reported in the Troubled Company Reporter-Asia Pacific on
October 13, 2009, Cytopia Limited signed an exclusive and binding
implementation agreement with YM BioSciences Inc. in which YM will
acquire all of the issued shares and options of Cytopia.
The transaction was conducted by schemes of arrangement and was
approved by shareholders on January 12, 2010. The Supreme Court
of Victoria made Orders approving the scheme on January 15.
The Australian operations will be operated under the YM name
following completion of the transaction. Pursuant to the
provisions of the agreement, Mr. Bob Watson, Chair of Cytopia will
be appointed to the board of YM.
About Cytopia
Cytopia Limited (ASX:CYT) -- http://www.cytopia.com.au/-- is an
Australia-based company. The Company is engaged in the business
of drug discovery research and development through its
subsidiaries Cytopia Research Pty Ltd (Cytopia Research) and
Cytopia Inc focusing on cancer and inflammatory diseases. The
Company is developing CYT997, an anticancer agent that disrupts
tumour blood vessels. CYT997 is being investigated in Phase II
clinical trials in a variety of cancers. The Company is also
undertaking two Phase II efficacy studies. Cytopia opened its
trial for CYT997 in relapsed glioma, a form of brain tumour, in
September 2008. The Company is also undertaking a Phase II study
in multiple myeloma, a disorder of the bone marrow.
* * *
Cytopia Limited reported three consecutive net losses of AU$6.51
million, AU$7.60 million and AU$4.94 million for the years ended
June 30, 2009, 2008 and 2007, respectively.
INTERNATIONAL POWER: Agrees to Rollover AU$445-Mil. Debt
--------------------------------------------------------
International Power Plc may have agreed with banks to roll over
AU$445 million (US$413 million) of debt covering its Hazelwood
power station in the Australian state of Victoria, Bloomberg News
reports citing the Australian Financial Review.
According to Bloomberg, the newspaper's Street Talk column on
Tuesday indicated that the terms of the agreement with
International Power's bank syndicate aren't finalized, although an
injection of equity may not be needed.
Bloomberg relates the Review said the debt falls due on Feb. 21,
2010.
International Power plc -- http://www.ipplc.com/-- is a U.K.-
based global power developer. International Power has power
plants in operation or under construction in Australia, the United
States of America, the United Kingdom, the Czech Republic, France,
Germany, Italy, the Netherlands, Portugal, Spain, Turkey, Bahrain,
Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Pakistan, Puerto
Rico and Thailand. International Power is listed on the London
Stock Exchange with ticker symbol IPR.
* * *
As reported in the Troubled Company Reporter-Europe on Nov. 12,
2009, Standard & Poor's Ratings Services raised its long-term
corporate credit rating on International Power PLC (to 'BB' from
'BB-'). The outlook is stable.
In addition, the debt ratings on the US$252.5 million 3.75%
convertible bond due 2023 issued by International Power Finance
(Jersey) Ltd., the EUR230.0 million 3.25% convertible bond due
2013 issued by International Power Finance (Jersey) II Ltd., and
the EUR700.0 million 4.75% convertible bond due 2015 issued by
International Power Finance (Jersey) III Ltd. were raised to 'BB'
from 'BB-'. The recovery rating on these bonds is unchanged at
'4', indicating Standard & Poor's expectation of average (30%-50%)
recovery in the event of payment default.
* AUSTRALIA: Announces Corporate Insolvency Law Reform Package
--------------------------------------------------------------
The Minister for Financial Services, Superannuation and Corporate
Law, Chris Bowen MP, announced Tuesday a package of reforms to
Australia's corporate insolvency laws.
The reform package contains a range of reforms directed at
reducing the costs and complexity of insolvency administrations;
improving communications with creditors; and reducing the
potential for abuse of corporate insolvency law. The reforms will
include the adoption of substantially all of the recommendations
made by CAMAC in its Issues in external administration report.
The Government will also amend the Corporations Act to reverse the
effect of the High Court's decision in Sons of Gwalia v Margaretic
which determined that, in a corporate winding up, certain
compensation claims by shareholders against the company were not
subordinated below the claims of other creditors.
"Any direct benefits to aggrieved shareholders arising from non-
subordination are outweighed by the negative impacts on
shareholders generally as a result of restrictions on access to,
and increases in, the cost of debt financing for companies,"
Minister Bowen said in a statement.
"The Government also remains concerned that the Sons of Gwalia
decision has the potential to further increase uncertainty and
costs of associated with external administration.
"The decision has also been taken in light of the decision's
potential negative impact on business rescue procedures."
Minister Bowen also released a discussion paper on the operation
of Australia's insolvent trading laws in the context of attempts
at business rescue outside of external administration. The paper
outlines possible options for reform.
"The Government is committed to ensuring that Australia's
corporate insolvency laws are capable of meeting the challenges
arising from the global economic downturn," Minister Bowen said.
"Informal work-outs play an important role in business rescue and
therefore the protection of the shareholders, creditors and
employees of distressed businesses. The use of formal insolvency
reorganization procedures is not always appropriate.
"It is important that Australia's insolvency laws complement and
assist the conduct of informal work-outs."
=========
C H I N A
=========
SINOBIOPHARMA INC: Earns US$1.07 Million in November 30 Quarter
---------------------------------------------------------------
Sinobiopharma, Inc., and subsidiaries reported net income of
US$1,073,550 on sales of US$2,137,471 for the three months ended
November 30, 2009, compared to a net loss of US$1,045,239 on sales
of US$971,173 for the three months ended November 30, 2008.
The increase in sales was due to the continuing growth in sales of
Cisatracurium Besylate. The increase in net income was due to the
increase in sales and decrease of the stock-based compensation
expense.
For the six months ended November 30, 2008, the Company reported
net income of US$1,310,717 on sales of US$3,431,235, compared to a
net loss of US$897,376 on sales of US$1,902,376 for the six months
ended November 30,2008.
Balance Sheet
At November 30, 2009, the Company's consolidated balance sheets
showed total assets of US$6,927,840, total current liabilities of
US$4,445,765, and total stockholders' equity of US$2,482,075.
The Company had negative working capital of US$2,565,449 at
November 30, 2009, compared to negative working capital of
US$3,487,160 at May 31, 2009.
A full-text copy of the Company's quarterly report on Form 10-Q is
available at no charge at http://researcharchives.com/t/s?4d8e
Going Concern Doubt
"For the six months period ended November 30, 2009, the Company
had net income of US$1,310,717, but had the cumulative losses
since commencement of operations of US$6,400,562 and negative
working capital of US$2,565,449 as of November 30, 2009, which
raises substantial doubt about the Company's ability to continue
as a going concern. The ability of the Company to meet its
commitments as they become payable is dependent on the ability of
the Company to obtain necessary financing or achieve a
consistently profitable level of operations. There are no
assurances that the Company will be successful in achieving these
goals."
About Sinobiopharma Inc.
Based in Nantong City, Jiangsu Province, China, Sinobiopharma,
Inc., through its operating subsidiary Dong Ying China, is engaged
in the research, development, manufacture and marketing of
biopharmaceutical products in China. The Company has developed
new methods for synthesis of active pharmaceutical ingredient
("API") and innovative drug delivery (new formulation) that
dramatically reduces the time and cost of drug development. The
Company's current therapeutic focus is on anesthesia-assisted
agents and cardiovascular drugs.
In November 2009, the Company received final approval from all
authorities for the production and sales of its new drug
Perindopril with brand name of Yitai. Yitai is a cardiovascular
drug used for the patients with heart disease and high blood
pressure. It is covered by Chinese health insurance.
Sinobiopharma, Inc. was incorporated in the State of Nevada.
================
H O N G K O N G
================
GLOBAL COMMERCE: Court to Hear Wind-Up Petition on March 10
-----------------------------------------------------------
A petition to wind up the operations of Global Commerce (H.K.)
Limited will be heard before the High Court of Hong Kong on
March 10, 2010, at 9:30 a.m.
The Petitioner's Solicitors are:
Siao, Wen and Leung
Wing On Central Building, 7/F
26 Des Voeux Road Central
Hong Kong
GOOD HUGE: Court to Hear Wind-Up Petition on March 3
----------------------------------------------------
A petition to wind up the operations of Good Huge Limited will be
heard before the High Court of Hong Kong on March 3, 2010, at
9:30 a.m.
The Petitioner's Solicitors are:
Messrs. W.S. Szeto & Lee
Wing On House, Rooms 2202-3
22nd Floor
71 Des Voeux Road Central
Hong Kong
GOLDCOME INDUSTRIAL: Yu and Sutton Appointed as Liquidators
-----------------------------------------------------------
Fok Hei Yu and Roderick John Sutton on October 16, 2009, were
appointed as liquidators of Goldcome Industrial Limited.
The liquidators may be reached at:
Fok Hei Yu
Roderick John Sutton
The Hong Kong Club Building, 14/F
3A Chater Road
Central, Hong Kong
GREAT SAFE: Court to Hear Wind-Up Petition on January 27
--------------------------------------------------------
A petition to wind up the operations of Great Safe Logistics
Limited will be heard before the High Court of Hong Kong on
January 27, 2010, at 9:30 a.m.
The Petitioner's Counsel is:
Simone Leung
Department of Justice
2nd Floor, High Block
Queensway Government Offices
66 Queensway, Hong Kong
HONGKONG MAIZE: Creditors' Proofs of Debt Due February 10
---------------------------------------------------------
Creditors of Hongkong Maize and Feed Importers Association
Limited, which is in members' voluntary liquidation, are required
to file their proofs of debt by February 10, 2010, to be included
in the company's dividend distribution.
The company commenced wind-up proceedings on December 29, 2009.
The company's liquidator is:
Chung Pui Lam
Rooms 1601-06, 16th Floor
ING Tower
308 Des Voeux Road
Central, Hong Kong
HUGE MAX: Members' Final Meeting Set for February 26
----------------------------------------------------
Members of Huge Max Engineering Limited, which is in members'
voluntary liquidation, will hold their final meeting on Feb. 26,
2010, at 10:00 a.m., at Room 502, Finance Building, No. 256 Des
Voeux Road Central, in Hong Kong.
At the meeting, Lo Yau Leung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
JACKEL SERVICES: Members' Final Meeting Set for February 19
-----------------------------------------------------------
Members of Jackel Services Limited, which is in members' voluntary
liquidation, will hold their final general meeting on February 19,
2010, at 10:00 a.m., at Room 2501, Hopewell Centre, 183 Queen's
Road East, in Hong Kong.
At the meeting, Wong Hong Yuen, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
KAI NGAI: Creditors' Proofs of Debt Due January 29
----------------------------------------------------
Kai Ngai Printing & Paper Products Company Limited, which is in
creditors' voluntary liquidation, requires its creditors to file
their proofs of debt by January 29, 2010, to be included in the
company's dividend distribution.
The company's liquidator is:
Huen Ho Yin
Li Po Chun Chambers, 8/F
189 Des Voeux Road
Central, Hong Kong
KEEN GLORY: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order November 30, 2009, to
wind up the operations of Keen Glory Limited.
The company's liquidator is Yuen Tsz Chun Frank.
KIM SUM: Creditors' Proofs of Debt Due February 15
--------------------------------------------------
Creditors of Kim Sum Cantonese Opera Company Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by February 15, 2010, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on November 24, 2009.
The company's liquidator is:
Danvil Chan Kin Hang
Ginza Square, Room 2301, 23/F
565-567 Nathan Road
Yaumatei, Kowloon
Hong Kong
LUNG HING: Court to Hear Wind-Up Petition on February 24
--------------------------------------------------------
A petition to wind up the operations of Lung Hing Transportation
Limited will be heard before the High Court of Hong Kong on
February 24, 2010, at 9:30 a.m.
The Petitioner's Solicitors are:
Messrs. Liu, Chan and Lam
Hutchison House, Rooms 1710-18
17th Floor
No. 10 Harcourt Road
Central, Hong Kong
NATURAL WOOD: Court to Hear Wind-Up Petition on March 10
-----------------------------------------------------------
A petition to wind up the operations of Natural Wood Limited will
be heard before the High Court of Hong Kong on March 10, 2010, at
9:30 a.m.
The Petitioner's Solicitors are:
Siao, Wen and Leung
Wing On Central Building, 7/F
26 Des Voeux Road Central
Hong Kong
NEWS DATA: Commences Wind-Up Proceedings
----------------------------------------
Members of News Data Security Products Limited, on December 29,
2009, passed a resolution to voluntarily wind-up the company's
operations.
The company's liquidator is:
Rainier Hok Chung Lam
Anthony David Kenneth Boswell
Prince's Building, 22/F
Central, Hong Kong
OCTAGON GREATER: Members' Final General Meeting Set for Feb. 19
---------------------------------------------------------------
Members of Octagon Greater China Limited, which is in members'
voluntary liquidation, will hold their final general meeting on
February 19, 2010, at 10:00 a.m., at Room 1203-1213, 12/F, China
Merchants Tower, Shun Tak Centre, 168-200 Connaught Road Central,
in Hong Kong.
At the meeting, Bruno Arboit, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
ORGANIZATION SEARCH: Chen and Wong Step Down as Liquidators
-----------------------------------------------------------
Chen Yung Ngai Kenneth and Wong Tak Man Stephen stepped down as
liquidators of Organization Search Limited on January 7, 2010.
SEA CDO: Moody's Takes Rating Actions on Various Classes Notes
--------------------------------------------------------------
Moody's Investors Service announced this rating action on notes
issued by Sea CDO Limited, a collateralized debt obligation
transaction referencing a managed portfolio of corporate entities.
Issuer: Sea CDO Limited
-- US$ 20,000,000 Secured Floating Rate Credit Linked Note due
2010, Series 2005-5, Downgraded to Caa3; previously on
Feb. 13, 2009 Downgraded to B2
Moody's explained that the rating action taken is the result of
the deterioration of the credit quality of the reference
portfolio. The 10 year weighted average rating factor of the
portfolio, not adjusted with forward looking measures, has
deteriorated from 980 from the last rating action to 1609,
equivalent to an average rating of the current portfolio of Ba3.
The reference portfolio includes an exposure to iStar Financial
Inc. and Ambac Financial Group which have experienced substantial
credit migration in the past few months, and are now rated Ca.
Entities with Caa ratings account for 4% of the reference
portfolio. Since the last rating action on the transaction, the
subordination of the rated tranche has been reduced due to credit
events on CIT Group Inc. and Thomson S.A. These credit events
lead to a decrease of 0.44% of the subordination. The tranche now
has a subordination of 2.3% and a thickness of 1.8%. The Banking,
Insurance, Finance and Telecommunications sectors are the most
represented, weighting 14.3%, 13.6%, 9.4% and 9.0%, respectively,
of the portfolio initial notional.
=========
I N D I A
=========
ALFA TRANSFORMERS: CRISIL Cuts Rating on INR57.5MM Loan to 'BB'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Alfa
Transformers Ltd to 'BB/Negative/P4+' from 'BBB-/Stable/P3'.
Facilities Ratings
---------- -------
INR105.0 Million Cash Credit BB/Negative (Downgraded from
'BBB-/Stable')
INR57.5 Million Term Loan BB/Negative (Downgraded from
'BBB-/Stable')
INR40.0 Million Bank Guarantee P4+ (Downgraded from 'P3')
INR42.5 Million Letter of Credit P4+ (Downgraded from 'P3')
The downgrade reflects the severe pressure on Alfa's business risk
profile because of a steep decline in its revenues, driven by
significant reduction in export orders in 2008-09 (refers to
financial year, April 1 to March 31) and 2009-10. The downgrade
also reflects CRISIL's belief that Alfa's business risk profile
will remain weak over the medium term because of lack of revenue
visibility, driven by the shrinking export order book, and because
of a likely decline in Alfa's profitability, as the company is
expected to generate more revenues from the domestic market, where
margins are typically lower than in the export market.
The ratings reflect Alfa's weak business risk profile,
deteriorating financial risk profile marked by low net worth base
and deterioration in weak debt protection metrics, large working
capital requirements, and exposure to intense competition in the
fragmented transformer industry. These rating weaknesses are
partially offset by the experience of Alfa's management in the
transformer industry.
Outlook: Negative
CRISIL believes that Alfa will continue to face increasing
pressure as its revenues and profitability are likely to continue
to decline steeply over the medium term. The rating could be
downgraded if Alfa faces steeper-than-expected decline in its
revenues and profitability. Conversely, the outlook may be
revised to 'Stable' in case the pressure on Alfa's business risk
profile reduces, most likely because of increase in export orders
leading to better revenue visibility and a sustained increase in
cash accruals.
About Alfa Transformers
Established by Mr. D K Das in 1982, Alfa manufactures small
distribution transformers at its plant in Bhubaneshwar. Over the
years, the company has increased its range of products to include
power and other specialized transformers. The company also offers
related technical assistance and services, including repair of
products. The company primarily caters to the export market in
Libya, and also has presence in Kenya, Nepal, and the Middle-East.
For 2008-09, Alfa reported a profit after tax (PAT) of INR35
million on net sales of INR271 million, against a PAT of INR27
million on net sales of INR334 million for 2007-08. For the half
year ended September 30, 2009, Alfa reported a net loss of INR7.5
million on net sales of INR54 million, against a PAT of INR27
million on net sales of INR224 million for the corresponding
period of the previous year.
DWARIKA PROJECTS: CRISIL Lifts Rating on INR100MM Loan to 'BB+'
---------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Dwarika
Projects Ltd to 'BB+/Stable' from 'BB/Stable', while reaffirming
the short-term rating at 'P4+' .
Facilities Ratings
---------- -------
INR100.00 Million Long Term Loan BB+/Stable (Upgraded from
BB/Stable)
INR70.00 Million Cash Credit BB+/Stable (Upgraded from
BB/Stable)
INR330.00 Million Bank Guarantee P4+ (Reaffirmed)
The upgrade reflects the improvement in Dwarika's operating margin
and the increase in its cash accruals, attributed to the presence
of price escalation clause in all contracts undertaken by Dwarika
thereby hedging against the fluctuation in raw material prices, as
well as the decline in its gearing on fresh equity infusion by
promoters in 2008-09. The upgrade also reflects CRISIL's belief
that Dwarika's gearing will improve further, as the company has no
major debt-funded capital expenditure (capex) plan for now. The
upgrade also factors in Dwarika's improved order book, and
decision against investing in the real estate sector.
The ratings continue to reflect Dwarika's modest scale of
operations, and its exposure to risks related to the geographical
concentration in its revenue profile. These weaknesses are
partially offset by the industry experience of Dwarika's
promoters.
Outlook: Stable
CRISIL believes that Dwarika will maintain its business and
financial risk profiles over the medium term, supported by its
improved order book position and comfortable capital structure.
The outlook may be revised to 'Positive' in case of more-than-
expected improvement in the company's operating margin, or fresh,
substantial equity infusion by its promoters. Conversely, the
outlook may be revised to 'Negative' if Dwarika undertakes a large
debt-funded capex, in case of slowdown in order inflow, or if the
company invests in unrelated business.
About Dwarika
Dwarika was promoted in 2005 by Mr. Raj Kishore Verma and his
brother Mr. Brij Kishore Verma to take over the business of Raj &
Associates, the partnership firm of members of the Verma family.
The firm started operations in 1981 and was engaged in
construction activity mainly in the industrial and infrastructure
sectors. Dwarika is based in Noida, Uttar Pradesh (UP), and its
projects are mainly in UP and Uttarakhand.
For 2008-09 (refers to financial year, April 1 to March 31),
Dwarika reported a profit after tax (PAT) of INR27.0 million on
net sales of INR567.0 million, against a PAT and net sales of
INR14.0 million and INR368.2 million, respectively, for the
preceding year.
ESKAY DYESTUFFS: CRISIL Puts 'BB+' Ratings on Various Bank Debts
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to the proposed long-
term loan of Eskay Dyestuffs & Organic Chemicals Pvt, and has
reaffirmed its ratings on the company's other bank facilities at
'BB+/Stable/P4+'.
Facilities Ratings
---------- -------
INR12.3 Million Proposed LT BB+/Stable (Assigned)
Bank Loan Facility
INR17.4 Million Term Loan BB+/Stable (Reaffirmed)
(Reduced from INR29.7 Million)
INR50.0 Million Cash Credit BB+/Stable (Reaffirmed)
INR7.5 Million Letter of Credit P4+ (Reaffirmed)
INR0.5 Million Bank Guarantee P4+ (Reaffirmed)
The ratings continue to reflect Eskay Dyestuffs' small net worth
and small scale of operations, which limits its financial
flexibility, supplier concentration risks, exposure to intense
market competition. These weaknesses are partially offset by the
company's established market position, healthy operating
efficiency, as reflected in its robust operating margin, and its
promoters' industry experience.
Outlook: Stable
CRISIL believes that Eskay Dyestuffs will maintain its business
risk profile over the medium term, backed by healthy operational
efficiency and technical expertise. The outlook may be revised to
'Positive' if there is significant improvement in the company's
capital structure and increase in net worth. Conversely, the
outlook may be revised to 'Negative' if the company undertakes
larger-than-expected debt-funded capital expenditure programme.
About Eskay Dyestuffs
Eskay Dyestuffs, incorporated in 1982, manufactures optical
brightening agents (OBAs). The company was originally set up in
the 1960s as a partnership firm, Eskay Chemical Corporation, by
the Bhumgara family,; and it is currently run by Dr. Shavak
Bhumgara, who has over 25 years of experience in the industry.
The company's factories are located in Ghatkopar and Taloja in
Mumbai, with total installed capacity of 3000 tonnes per annum
(tpa). OBAs are additives used to enhance the appearance of colour
in fabric and paper, causing a perceived whitening effect. Eskay
Dyestuffs' OBAs are sold under the brand name Skaywhit.
For 2008-09 (refers to financial year, from April 1 to March 31),
Eskay Dyestuffs reported a profit after tax (PAT) of INR4 million
on net sales of INR242 million, against a PAT of INR10 million on
net sales of INR201 million for 2007-08.
ENSEMBLE INFRASTRUCTURE: CRISIL Affirms 'D' Ratings on Debts
------------------------------------------------------------
CRISIL has reaffirmed its ratings of 'D/P5' on Ensemble
Infrastructure India Ltd's bank facilities. The rating continues
to reflect delay by EIIL in repayment of term loan obligations
owing to weak liquidity.
Facilities Ratings
---------- -------
INR115.0 Million Cash Credit D (Reaffirmed)
INR38.7 Million Term Loan D (Reaffirmed)
INR60.0 Million Bank Guarantee P5 (Reaffirmed)
INR20.0 Million Letter of Credit P5 (Reaffirmed)
The Mumbai-based EIIL offers civil designing and interior contract
services. Its clientele includes large companies, banks, and
government bodies. The company was founded in 2003 by Mr. Nilesh
Rathod and Mr. Vikas Rathod who are first generation
entrepreneurs.
EIIL reported a net loss of INR73 million on net sales of INR294
million for 2008-09 (refers to financial year, April 1 to
March 31), as against a profit after tax of INR4 million on net
sales of INR220 million for 2007-08.
PARAS HEALTHCARE: CRISIL Places 'LBB' Rating on INR103MM Loans
--------------------------------------------------------------
ICRA has assigned 'LBB' rating to INR103 million term loans and
INR182 million fund based limits of Paras Healthcare Private
Limited.
The rating takes into account PHPL's limited track record of
operations which coupled with intense competition in the
healthcare industry in the NCR has resulted in moderate occupancy
levels and its relatively high gearing levels. The rating also
factors in the planned additions to hospital room supply in
Gurgaon in the short to medium term, which are expected to keep
the competitive pressures high going forward. However the
rating draws comfort from PHPL's healthy growth in operating
income and its diversification across various specialties which
mitigates concentration risk to an extent. Going forward, ICRA
expects PHPL's revenue to grow at a faster rate with its plans to
increase the share of institutional business; however the
company's ability to ensure timely payments from such customers
would be critical to company's funding requirements.
Paras Healthcare is a part of Paras Group which is present in
diverse business fields like dairy products, real estate and
healthcare. Paras Group was founded in 1960 by Late Mr. Ved Ram
who started the dairy products business in a proprietorship
concern. Currently the dairy business is being run through two
firms namely VRS Foods Limited and Ved Ram and Sons Private
Limited. The Group has also diversified into real estate business
through a company named Paras Build-Call Limited. Paras
Healthcare Private Limited has been promoted by two brothers Mr.
Dharminder Nagar and Mr. Rajendra Singh. The company currently has
two operational hospitals one each in Gurgaon and Delhi.
GULSHAN HOMZ: CRISIL Rates INR150 Mil. Term Loan at 'B+'
--------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to Gulshan Homz Pvt
Ltd's term loan facility.
Facilities Ratings
---------- -------
INR150.0 Million Term Loan B+/Stable (Assigned)
The rating reflects GHPL's dependence on customer advances to fund
its ongoing housing project and meet its immediate debt
repayments, and the company's susceptibility to downtrends in the
Indian real estate industry. These rating weaknesses are
partially offset by the benefits that GHPL derives from its
promoters' experience in the construction industry.
Outlook: Stable
CRISIL believes that completion of GC Grand and GC Centrum
projects of GHPL will remain sensitive to receipt of customer
advances and sales of remaining units in these projects. The
outlook may be revised to 'Positive' if higher than anticipated
sales of units in the projects leads to higher cash generation.
Conversely, the outlook may be revised to 'Negative' if delays in
receipt of customer advances affect timely completion of project
and debt repayments.
About Gulshan Homz
Gulshan Homz Pvt Ltd was incorporated in 1997. The company
commenced commercial operations in the early 2000s. It started
with construction contracting and developed two group housings,
one each at Indirapuram and Dwarka (Delhi National Capital Region
(NCR)) in early 2000s. The company continued with construction
contracting activities till 2004-05 (refers to financial year,
April 1 to March 31). GHPL started developing real estate projects
on its own during 2005-06. The company is currently developing
two residential projects, GC Grand and GC Centrum, at Indirapuram
(Delhi NCR). The estimated cost of construction for GC Grand and
GC Centrum is around INR1400 million and INR580 million
respectively. Construction for both the projects started in the
first quarter of 2006. Construction on GC Centrum is almost
complete and almost 95 per cent of the residential units have been
sold. GC Grand is around 65 per cent complete, and it is expected
to be completed during the third quarter of 2010-11.
GHPL reported a profit after tax (PAT) of INR3.9 million on net
sales of INR475.3 million for 2008-09, against a PAT of INR2.0
million on net sales of INR225.2 million for 2007-08.
HINDUJA FOUNDRIES: ICRA Reaffirms 'LBB+' Rating on Bank Debts
-------------------------------------------------------------
ICRA has re-affirmed the 'LBB+' rating outstanding on the INR821.9
million term loans, the US$20.0 million term loan and the INR594.0
million fund based limits of Hinduja Foundries Limited.
Though the ECB facility is denominated in foreign currency, ICRA's
ratings for the same are on the national rating scale as distinct
from the international rating scale. ICRA has also re-affirmed
the A4+ rating outstanding on the INR236.0 million fund based
limits, the INR100.0 million fund based sub-limits, the INR583.0
million non-fund based limits and the INR71.0 million non-fund
based sub-limits of HFL. ICRA has assigned stable outlook on the
long-term bank line rating.
The re-affirmation of ratings, in spite of relatively weak
operating / financial performance over the last four quarters,
takes into account HFL's status as one of the largest automotive
foundries, its strong market position with ALL and the buoyant
demand prospects of the commercial vehicle (CV) segment in the
near term. The ratings also consider HFL's exposure to the
inherent cyclicality in the domestic CV industry and its high
customer concentration towards Ashok Leyland Limited (ALL). While
the economic downturn had significantly impacted its sales in the
CV segment and consequently capacity utilization in the recent
past, such large capacities endow benefits of scale economics.
HFL's healthy market share in automotive intricate castings (viz.,
cylinder heads / blocks) and relationships with renowned clientele
are expected to drive growth going forward. While the economic
slowdown has severely impacted the Company's business since the
mid of fiscal 2008-09, favorable demand outlook for the automotive
sector in India is also expected to drive revenue and margin
growth. The ratings also favorably factor in the strong promoter
background and HFL's close business ties with ALL. The promoters
have demonstrated their commitment through infusion of preference
capital and re-schedulement of maturity of preference shares.
About Hinduja Foundries
HFL, belonging to the Hinduja Group, is primarily engaged in the
manufacture of ferrous castings for automobiles. HFL is among the
larger iron casting foundry for automotive jobbing in India, with
manufacturing locations spread across Tamil Nadu and Andhra
Pradesh. Commencing operations with an initial capacity of 1,000
TPA in 1961, HFL gradually expanded its effective capacity over
the years to 98,000 MTPA at present.
The Hinduja Group (through Hinduja Automotive Limited and ALL)
holds controlling stake of 69.9 per cent in HFL. The Group has
interests in energy, chemicals, petrochemicals, telecom,
transportation and financial services, and is represented by key
companies like ALL, HFL, Hinduja TMT Limited, Gulf Oil Corporation
Limited and IndusInd Bank in India.
Recent results
For the half-year ended September 2009, HFL's revenues de-grew by
31.6% against the revenues for the half-year ended September 2008.
During the same period, the net profits fell from INR57 million to
a loss of INR87 million on the back of decline in operating
profits and increased interest costs. However, such loss has been
buffered to an extent on account of increased sale of patterns to
certain customers (a high-margin business).
PORBANDAR COAL: CRISIL Assigns 'BB' Rating on INR17.6MM Loan
------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4+' to the bank
facilities of Porbandar Coal Agencies Pvt Ltd.
Facilities Ratings
---------- -------
INR40.0 Million Cash Credit Limit BB/Stable (Assigned)
INR17.6 Million Term Loan BB/Stable (Assigned)
INR5.0 Million Bill Purchase P4+ (Assigned)
INR80.0 Million Letter of Credit P4+ (Assigned)
The ratings reflect PCAPL's exposure to risks relating to small
scale of operations in the coal industry, high customer and
supplier concentration in revenues, and weak financial risk
profile. The impact of these weaknesses is mitigated by the
benefits that PCAPL derives from its promoters' extensive
experience in business.
Outlook: Stable
CRISIL expects PCAPL to maintain a stable credit risk profile over
the medium term backed by the promoters' experience in the coal
industry. The outlook may be revised to 'Positive' if PCAPL
maintains its current revenue growth, while enhancing its revenue
diversity and strengthening its capital structure. Conversely,
the outlook may be revised to 'Negative' if PCAPL's operating
margins are adversely impacted by changes in product mix, or if
there is a deterioration in its financial risk profile on account
of future debt funded capital expenditure.
About Porbandar Coal
Set up in 1995 at Porbandar (Gujarat), PCAPL trades in and
processes coking and non-coking coal. PCAPL not only procures
coal and pet coke, but also processes them through sorting,
grading, and grinding, before its sells them to brick
manufacturers, refractors, power plants and tile manufacturers.
PCAPL reported a profit after tax (PAT) of INR8 million on net
sales of INR183 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR4 million on net
sales of INR56 million for 2007-08.
RAJASTHAN TUBE: CRISIL Reaffirms 'B' Rating on Bank Facilities
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Rajasthan Tube
Manufacturing Company Ltd continues to reflect Rajasthan Tube's
weak financial risk profile marked by its low net worth and weak
debt protection measures, and its small scale of operations.
These weaknesses are partially offset by Rajasthan Tube's long
track record, and established relationships with customers.
Facilities Ratings
---------- -------
INR125.0 Million Cash Credit B/Negative (Reaffirmed)
INR12.5 Million Bank Guarantee P4 (Reaffirmed)
INR80.0 Million Letter of Credit P4 (Reaffirmed)
Outlook: Negative
CRISIL believes that Rajasthan Tube's financial risk profile could
deteriorate further, given the company's low operating margin and
hence, low cash accruals. The rating may be downgraded if there
is a sharp decline in the company's revenues or operating margins
because of slowdown in the end-user industry or if it undertakes a
large debt-funded capital expenditure programme, thereby adversely
affecting its financial risk profile. Conversely, improvement in
financial risk profile, backed by fresh equity infusions or
enhanced profitability, may drive a revision in outlook to
'Stable'
About Rajasthan Tube
Promoted in 1985 by Mr. Harish Jain and his associates, Rajasthan
Tubes is engaged in the production of electric resistance welded
pipes. In May 2009, the company shifted its production plant to
Jaipur from Sirohi; the Jaipur plant has a production capacity of
45,000 tonnes per annum.
Rajasthan Tubes reported a net loss of INR9 million on net sales
of INR548 million for 2008-09 (refers to financial year, April 1
to March 31), against a profit after tax of INR4 million on net
sales of INR605 million for 2007-08.
ROSE GEMS: CRISIL Upgrades 'P4+' Ratings on Various Bank Debts
--------------------------------------------------------------
CRISIL has upgraded its rating on the short-term bank facilities
of Rose Gems to 'P4+' from 'P4'.
Facilities Ratings
---------- -------
INR60.0 Million Packing Credit P4+ (Upgraded from 'P4')
INR158.0 Million Export Bill P4+ (Upgraded from 'P4')
Rediscounting
INR147.0 Million Proposed Short P4+ (Upgraded from 'P4')
Term Bank Loan Facility
The upgrade reflects improvement in the liquidity of Rose Gems on
the back of improvement in its receivables and inventory position.
The firm's bank limits were moderately utilized, at an average of
72 per cent in the 12 months through November 2009. The upgrade
also reflects CRISIL's expectation that Rose Gems will maintain
its liquidity over the medium term, given the expected improvement
in the prospects of the diamond industry.
The ratings continue to reflect Rose Gems' weak financial risk
profile marked by a small net worth and weak debt protection
indicators, and its small scale of operations. These weaknesses
are partially offset by the firm's above-average operating margin,
and its promoters' industry experience.
Rose Gems, a partnership firm set up in 1997, manufactures and
sells rough and polished round diamonds. Headquartered in Mumbai,
the firm has a manufacturing facility in Surat, Gujarat. The firm
had net sales of INR413.9 million and a profit after tax of INR5.9
million in 2008-09 (refers to financial year, April 1 to
March 31), against INR473.6 million and INR9.1 million,
respectively, the previous year.
SJ EXPORTS: CRISIL Rates INR105MM Packing Credit at 'P4+'
---------------------------------------------------------
CRISIL has assigned its rating of 'P4+' to SJ Exports' bank
facility.
Facilities Ratings
---------- -------
INR105.0 Million Packing Credit P4+ (Assigned)
The rating reflects SJ Exports' weak financial risk profile, small
scale of operations, and exposure to risks relating to the
partnership nature of its business, weak demand for polished
diamonds. These rating weaknesses are partially offset by the
benefits SJ Exports' derives from promoters' experience in the
diamond industry, efficient working capital management, and
modification in product profile to large diamonds (3 carats to 10
carats) from small diamonds (0.3 carat to 1 carat).
Set up in 1992, SJ Exports is a partnership firm manufacturing and
exporting rough as well as polished diamonds. The firm has its
manufacturing facilities at Surat (Gujarat) and sales office in
Mumbai and is managed by two partners, Mr. Sanjay Shah and his
brother, Mr. Sunil Shah. Mr. Jayantilal Shah, father of Mr. Sanjay
Shah, and Mr. Atman Shah, son of Mr. Sunil Shah, are the other two
partners.
SJ Exports reported a profit after tax (PAT) of INR2.5 million on
net sales of INR400 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR5.89 million on net
sales of INR500 million for 2007-08.
SAVIO CERAMICA: ICRA Assigns 'LBB' Rating on INR109.7MM Loans
-------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR 109.70 million term
loans and the INR 30 million, cash credit facility of Savio
Ceramica Private Limited. ICRA has also assigned an A4 rating to
the INR 20 million, short-term, non-fund based limits of SCPL.
The ratings are constrained by the highly competitive nature of
the ceramic tile industry, SCPL's small size of operations, its
single product portfolio and relatively lower visibility of its
brand compared to other large organized players. The ratings also
take into account SCPL's weak financial risk profile, high working
capital intensity and lower net profitability due to high interest
outgo on account of debt funded recent expansions. Moreover, the
company's revenues and cash flows are exposed to cyclicality in
the real estate industry.
The ratings, however, favorably factor in the long track record of
the promoters in ceramic tile industry and the agreement for
supply of vitrified tiles to Somany Ceramics Limited which
provides partial visibility to revenues.
Incorporated in 2007, Savio Ceramica Private Limited is in the
business of manufacturing vitrified tiles with its production
facilities located at Morbi, Gujarat which is also a major ceramic
tile manufacturing cluster. The company markets its vitrified
tiles under the brand name of "Savio" and has a total installed
capacity of 43920 tpa. During FY 2009, the company reported an
operating income of INR380.61 million and profit after tax of
INR2.46 million.
SHASHI CABLES: ICRA Rates INR9.3 Mil. Term Loan at 'LBB+'
---------------------------------------------------------
ICRA has assigned an 'LBB+' rating to INR9.3 million term loan and
INR125 million fund based limits of Shashi Cables Ltd. ICRA has
also assigned an A4+ rating, to INR150 million non fund based
limits of Shashi Cables Ltd.
The credit rating takes into account strong competitive pressure
in the core conductors business in the domestic market and the
relatively small capacity of SCL which has prevented it from
executing large value orders having better profit margins. These
factors have resulted in thin profitability in the past and this
situation is unlikely to change materially in the medium term.
The ratings are also constrained by gearing levels (1.24 times as
on March 31, 2009), modest coverage indicators (Net Cash Accrual
/Total Debt at 13% as on FY09). The ratings however derive
comfort from the long experience of promoters in managing the
business and established relationship with the clients which has
resulted in repeat orders in the past. The ratings also derive
comfort from the fact that the sales orders have price variation
(PV) clauses which give some protection to SCL against the
fluctuation in raw material prices
Shashi Cables Ltd commenced its operations as a partnership firm
named Anand Cables in year 1973. Initially it was manufacturing
small ASCR conductors (up to 11 KV). In 1981 the firm was
converted into public limited company and in 1996 the name of the
company was changed to SCL. By 1998 SCL started manufacturing the
entire range of aluminium conductors (up to 400 KV). Currently SCL
is active only in the fields of manufacturing of aluminium
conductors
SPICEJET LTD: Plans to Raise Up to US$75 Mil. to Fund Expansion
---------------------------------------------------------------
The Economic Times reports that SpiceJet Ltd plans to raise up to
US$75 million from the market to fund its fleet and route
expansion program. The company will invite proposals from
aircraft manufacturers by March before formally placing orders for
jetliners, the report says.
"We are looking at opportunity to raise capital from the market.
The number would be in the neighborhood of $50-75 million,"
SpiceJet CEO Sanjay Aggarwal told ET. The company is yet to
decide the modalities of raising the funds.
Mr. Aggarwal said the airline would place orders for new aircraft
for network expansion but added that the company was aiming at a
'measured and profitable,' according to ET.
According to the report, the low-cost airline expects to register
profit for the full financial year during 2009-10, first time
since it started commercial operations.
SpiceJet Limited -- http://www.spicejet.com/-- is an India-based
airline company. The Company operates 113 flights daily to 18
destinations, offering connectivity between metros and non-metros.
During fiscal year ended March 31, 2008 (fiscal 2008), the Company
inducted eight new aircrafts to its fleet taking the total fleet
strength to 19 aircrafts. Out of the eight new aircraft inducted,
two were Boeing 737-900.
* * *
SpiceJet Limited booked annual net losses of INR707.43 million in
2007 and INR1,335.07 million in 2008.
=================
I N D O N E S I A
=================
LISTRINDO CAPITAL: Unsecured Notes Won't Affect Moody's Ba2 Rating
------------------------------------------------------------------
Moody's Investors Service sees no impact on the provisional (P)Ba2
bond rating to be issued by Listrindo Capital B.V., following the
company's decision to change the structure from secured to
unsecured based on advice the company received from its tax
advisors. The outlook remains stable.
Moody's expects to remove the (P)Ba2 rating for the senior
unsecured notes from its provisional status upon completion of the
issuance.
"The notes were originally secured by a first priority lien on the
intercompany loan from Signal Capital to Cikarang Listrindo," says
Jennifer Wong, Moody's lead analyst for the company, adding
"Despite the change in structure, the notes will continue to be
unconditionally and irrevocably guaranteed by Cikarang."
"The guarantor structure remains the same and Cikarang will
continue to be the ultimate payment source of the principal and
interest for the notes on an unsubordinated basis."
Cikarang's rating continue to reflect its exclusive IPP license
for providing electricity to a large and diversified base of
industrial estate customers, its offtake agreement with PLN
(Ba2/stable), as well as track records of solid demand growth and
payment records from the industrial estate customer base, even
during the Asian financial crisis in 1997 and the more recent
economic slowdown.
The rating also reflect the company's strong reliability, strong
operating performance, and its robust tariff structure -- which
allows for foreign exchange and natural gas cost pass-through --
and its strong management team.
At the same time, the rating is constrained by its offtake risk
exposure to PLN and a moderate degree of uncertainty regarding the
extent of demand for the additional capacity that will come from
its expansion program.
Furthermore, there is certain degree of execution risk associated
with the capacity expansion, even though Cikarang has a track
record in managing such expansion and the fact that the program is
generally on schedule and within budget. In addition, a lack of
operational flexibility, given the company's single location plant
and relatively small capacity, is apparent.
Moody's also notes that -- post the note issue -- all of
Cikarang's debt will be in one bullet maturity, creating
refinancing risk that is unusual and which would represent a
weakness for the company.
Further, the future financial profile of the company is subject to
a degree of uncertainty, given the move from secured bank lending
and restrictive covenants to the more relaxed high-yield bond
covenants.
Moody's notes that the expansion plan will be completed in 2010,
and while such covenants do provide some restrictions, they do not
completely prevent further debt being raised, if Cikarang so
wishes.
Cikarang's average projected Cash Available for Debt Service
(CAFDS)/Mandatory Debt Service of around 3.0x and FFO/Debt of
around 20% are appropriate for the Ba2 rating, and in line with
Moody's Power Generation Projects methodology.
Moody's believes that Cikarang has a relatively predictable
business, and which has some similarities -- on a small scale --
to that of a utility, given the captive industrial user base.
The stable outlook reflects Moody's expectation that Cikarang will
continue to benefit from the strong demand from the industrial
estates.
Upward rating pressure will be limited in the near to medium term,
given the uncertainty over the offtake arrangement with PLN and
the execution risks associated with the capacity expansion.
But the rating will likely be upgraded in the longer term if
Cikarang concludes new offtake arrangements with PLN, and which
extend the term of the contract for existing capacity, as well as
taking part of the capacity currently being built. In addition,
it will be important that Cikarang maintains its current strong
operational and financial profile.
Key metrics that Moody's would look for in the case of a rating
upgrade include: RCF/Debt in the 15-20% range and Debt/EBITDA in
the 3-4 times range on a consistent basis. Furthermore, an
upgrade in PLN's rating could also positively impact Cikarang's
rating, assuming new offtake arrangements are finalized.
On the other hand, negative rating pressure will emerge if
Cikarang (1) is unable to finalize the offtake arrangements with
PLN at a favorable tariff; (2) cannot execute its capacity
expansion on schedule and within budget; or (3) there is a
significant deterioration in Cikarang's operational and financial
profile.
In this context, financial metrics that would indicate downward
rating pressure include RCF/Debt falling below 10-15% and/or
Debt/EBITDA falling below 4.5 times. A downgrade in PLN's rating
could also pressure the rating.
The last rating action on Cikarang was 13 January 2010 when
Moody's assigned the Ba2 corporate family rating and the (P)Ba2
senior secured bond rating.
PT Cikarang Listrindo is the exclusive IPP supplier of electricity
to a wide range of mostly foreign-owned companies in five
industrial estates in the Cikarang area outside of Jakarta. It
owns and operates a 518MW natural gas-fired combined cycle power
station, and distributes directly to the companies located on the
industrial estates. Its current capacity expansion plan, upon
completion, will increase the company's installed generation
capacity to 646MW. It also has an offtake agreement for part of
its power with PT Perusahaan Listrik Negara (Ba2/stable).
Cikarang is owned by 3 Indonesian families.
=========
J A P A N
=========
JAPAN AIRLINES: Files for Bankruptcy Before Tokyo District Court
----------------------------------------------------------------
Japan Airlines Corporation on Tuesday filed petitions for
commencement of corporate reorganization proceedings with the
Tokyo District Court.
On the same day, the Tokyo Court entered an order commencing the
proceedings and appointed the Enterprise Turnaround Initiative
Corporation of Japan and Eiji Katayama, Esq., as reorganization
trustees. The Court also appointed Hideo Seto and Akitoshi
Nakamura as executors of ETIC, the institutional trustee.
Japan Airlines Corp., Japan Airlines International Co., Ltd. and
JAL Capital Co., Ltd. -- jointly with the Development Bank of
Japan, Japan Bank for International Cooperation, Mizuho Corporate
Bank, Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Sumitomo
Mitsui Banking Corporation -- also filed an application to the
ETIC for support for their restructuring, and received the
decision from ETIC to provide support.
With respect to the certified alternative dispute resolution
procedures as prescribed in the Act on Special Measures for
Revitalization of Industrial Vitality and Innovation of Industrial
Activities that JAL had begun, the termination of those procedures
was decided by the Japanese Association of Turnaround
Professionals, a private operator of the Turnaround ADR Procedure,
prior to the filing of the petitions for commencement of corporate
reorganization proceedings.
"We hereby notify you of the above events and sincerely apologize
to all of our shareholders, financial creditors, customers and
suppliers and other parties concerned for the great inconvenience
and concern this situation might cause," JAL said in a statement.
The Trustees obtained comprehensive Court approval authorizing
JAL's continued payment of certain commercial transaction claims,
including payments for fuel and other supplies and services, as
well as leases and other related obligations. Also, JAL will be
able to obtain the DIP financing from DBJ and ETIC, the amount of
which will be sufficient to continue its business. Further, the
customers' airline tickets and frequent flyer miles will be fully
protected and the frequent flyer program is expected to be
continued as it has been conducted.
"Therefore, the continuation of our group's flight operations will
not be interrupted and our safe flight operations will be surely
performed. Additionally, effects on customers will be avoided and
JAL Group's business will continue as it has been conducted," JAL
said.
"While receiving the support from ETIC and sound assistance from
related parties including the Japanese government, and under the
supervision of the Court and the leadership of the Trustees, we
are confident that the swift revitalization of JAL Group will be
achieved after which JAL Group will be reborn as a leading airline
group that could again lead the global airline industry."
Haruka Nishimatsu, the Representative Director and President,
resigned on Tuesday and it is also expected that all of other
directors will resign.
The new management structure will be determined in early February.
Meanwhile, it is expected that Masato Uehara, the Senior Managing
Executive Officer, will be the Group Temporary Chief Operating
Officer.
Aside from Japan Airlines International Co., Ltd. and JAL Capital
Co., Ltd., no other Japan Airlines Corporation affiliates have
commenced Japanese Corporate Reorganization proceedings.
Chapter 15 Petition Filing
Japan Airlines Corp. and two subsidiaries, Japan Airlines
International Co. Ltd. and JAL Capital Co. Ltd., also filed
bankruptcy petitions Tuesday before the U.S. Bankruptcy Court for
the Southern District of New York under Chapter 15 of the U.S.
Bankruptcy Code, The Dallas Morning News reports.
JAL said its total debt is JPY2.549 trillion, or US$28 billion,
the report notes.
Job Cuts
Bloomberg News reports that Japan Airlines plans to cut 31 routes,
53 planes and almost a third of its workforce after winning state
funds to help restructure following the Japan's fourth-largest
bankruptcy.
Under a JPY900 billion (US$10 billion) plan announced yesterday by
the ETIC, Asia's biggest carrier will axe 14 international routes
and 17 domestic ones by the end of March 2013, Bloomberg relates.
Employment will drop by about 15,700 to 36,201 over the same
period, Bloomberg says.
The cuts may help JAL make an operating profit in the year ending
March 2012, compared with an expected operating loss of 265.1
billion yen this fiscal year, according to the plan obtained by
Bloomberg.
Debt Forgiveness, DIP Financing and Loans
ETIC said JAL is expected to receive debt forgiveness amounting to
JPY730 billion for a portion of their JPY1.15 trillion debt. JAL
will also receive DIP financing through a JPY600 billion line of
credit from ETIC and DBJ.
Following ETIC's decision to acquire debt, JAL will receive
financing of over JPY300 billion from ETIC.
In conjunction with this financing, JAL will also receive
financing of its debt coordinated by ETIC, DBJ and major banks.
These funds will be used to make lump-sum repayment of the common
benefit claims, namely the DIP financing and rehabilitation
securities and loans.
Protracted Bankruptcy Case Seen
The Wall Street Journal's Hiroyuki Kachi reports that Japan
Airlines Corp.'s stint under bankruptcy protection isn't likely to
be short or simple. The Journal cites JAL's massive liabilities
and sprawling business that covers everything from jet-fuel
procurement to aircraft leasing, both in Japan and overseas. The
Journal says JAL's case could also raise challenging questions
about whether bankruptcy protection will be recognized as it does
business in other countries.
"One thing that can become a big future problem is whether the
court protection will be valid outside Japan as an international
bankruptcy case," Hideyuki Kobayashi, Esq., at Blakemore & Mitsuki
law office in Tokyo, said, according to the Journal. Citing also
Japanese law and the uncertainty surrounding its fortunes, he
added, "We can expect at least three years for JAL's revival."
JAL filed for bankruptcy in Tokyo District Court pursuant to
Japan's Corporate Rehabilitation Act, which is based on U.S.
bankruptcy law.
The Journal also notes Japan's bankruptcy protection law has
undergone several revisions to date, aimed at making it easier to
use and bringing it closer into line with Chapter 11. Citing
Teikoku Databank, the Journal says among the 134 companies that
filed for bankruptcy protection under the act between January 2004
and June 2009, around 50% have already managed to revive
themselves, and only 1.5% actually went bankrupt and were
liquidated. Those companies took an average of 1.7 years to exit
the reorganization process, data from Teikoku Databank showed,
compared with 12.1 years for companies entering bankruptcy
protection 10 years ago.
About JAL
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-
based holding company that is active in five business segments
through its 225 subsidiaries and 82 associated companies. The Air
Transportation segment is engaged in the operation of passenger
and cargo planes. The Air Transportation-Related segment is
engaged in the transportation of passengers and cargoes, the
preparation of in-flight food catering, the maintenance of
aircraft and land equipment, as well as the fueling business. The
Travel Planning and Marketing segment is involved in the planning
and sale of travel packages. The Card and Leasing segment is
engaged in the provision of finance, cards and leasing services.
The Others segment is involved in businesses related to hotels,
resorts, logistics, wholesale, retail, real estate, printing,
construction, manpower dispatch, as well as information and
communication. The Company has numerous global operating
locations.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
December 4, 2009, Standard & Poor's Ratings Services lowered to
'SD' (selective default) from 'CC' its long-term corporate credit
ratings on Japan Airlines Corp. and Japan Airlines International
Co. Ltd., its wholly owned subsidiary, and removed the ratings
from CreditWatch. At the same time, Standard & Poor's maintained
its senior unsecured debt ratings on both companies at 'CCC' and
kept the ratings on CreditWatch with developing implications. On
Sept. 18, 2009, S&P placed the corporate credit and senior
unsecured debt ratings on both companies on CreditWatch with
negative implications and maintained the CreditWatch status on
Oct. 16, 2009, and Nov. 4, 2009. On Nov. 13, 2009, S&P maintained
its CreditWatch status on the corporate ratings on both companies
and revised to developing its CreditWatch status on the senior
unsecured debt ratings.
The TCR-AP reported on Nov. 3, 2009, that Moody's Investors
Service downgraded the long-term debt rating and issuer rating of
Japan Airlines International Co., Ltd. to Caa1 from B1, and will
continue to review both ratings for further possible downgrade.
NEC ELECTRONICS: Quarterly Operating Loss Likely to Narrow
----------------------------------------------------------
NEC Electronics Corp. will probably post a group operating loss of
around JPY8 billion (US$88.1 million) in the October-December
quarter, halving its loss from a year earlier on better sales of
flat-panel televisions, Bloomberg News reports citing the Nikkei
English News.
Bloomberg relates the Nikkei said sales in the period probably
dropped 6% from a year earlier to about JPY120 billion; that is
about 1% more than the July-September quarter.
Headquartered in Kanagawa, Japan, NEC Electronics Corporation
-- http://www.necel.com/-- specializes in semiconductor
products encompassing advanced technology solutions for the
high-end computing and broadband networking markets, system
solutions for mobile handsets, PC peripherals, automotive and
digital consumer markets, and multiple market solutions for a
wide range of customer applications. NEC Electronics
Corporation has 26 subsidiaries worldwide, including NEC
Electronics America, Incorporated and NEC Electronics (Europe)
GmbH.
* * *
NEC Electronics posted three consecutive annual net losses of
JPY41.5 billion, JPY15.99 billion, and JPY82.62 billion, for the
years ended March 31, 2007, 2008 and 2009, respectively.
=========
K O R E A
=========
LG TELECOM: Fitch Upgrades Issuer Default Rating From 'BB+'
-----------------------------------------------------------
Fitch Ratings has upgraded LG Telecom Ltd's Long-term foreign
currency Issuer Default Rating to 'BBB-' from 'BB+', and removed
it from Rating Watch Positive. The agency has simultaneously
assigned LGT a 'BBB-' Long-term local currency IDR. The Outlook
is Stable.
The rating upgrade follows the completion of LGT's three-way
merger with LG Dacom and LG Powercom on January 1, 2010, and
reflects the satisfaction of three upgrade guidelines previously
set by the agency, namely: total funding cost to repay dissenting
shareholders to be below the company's maximum expectation of
KRW800 billion (a total of KRW703 billion was paid); Fitch's
expectation that the company will maintain a credit profile with
an adjusted net debt to EBITDAR ratio of below 1.5x; and that the
conditions placed on the merger by the Korea Communication
Commission will not onerously impact the company's business or
financial profile. For more information, please see the rating
action commentary entitled, "Fitch Places LG Telecom on Rating
Watch Positive", dated November 30, 2009.
On average, 14% of shareholders across the three companies
disapproved of the merger. Fitch estimates that the
KRW703 billion required to buy back their shares at the end of
2009 will increase the merged entity's 2009E net debt to EBITDA
leverage ratio to 1.4x from 0.9x, as compared to the 0.8x
estimated by the agency for the standalone LGT. Fitch expects the
company's leverage to be on a declining trend in 2010 and 2011, in
light of ongoing EBITDA improvement and potential positive free
cash flow (FCF) generation.
A major concern is the possibility of marketing expenses in Korea
remaining at 2009's record high levels, and thereby dampening the
outlook for margin improvement (Fitch estimates that LGT will
register a marketing-to- service-revenue ratio of 29% in 2009).
However, the agency notes that LGT's new CEO, Mr. Lee Sang-Chul
(former Minister of Information & Communications, and former CEO
of KT Corp, rated 'A'/Stable) has stated that LGT would not
participate in excessive local competition, and expressed his view
that operator-funded handset subsidies should be curtailed.
Post-merger, LGT now has a 15.98% treasury stock position, which
based on LGT's current market price, represents an asset value of
around KRW690 billion. Fitch expects the company to dispose the
same amount over the next three years through a combination of
share cancellations and placements to institutional investors; the
latter is likely to have a de-leveraging impact, although the
agency has not factored this into its forecasts.
A positive rating action could result if LGT is able to show an
improvement in its revenue market shares for both mobile and
broadband business lines, while maintaining positive FCF
generation.
Negative rating actions would occur if there is a significant loss
of revenue market share in the mobile or broadband business lines,
if FCF generation turns significantly negative on a sustained
basis, and if there is a further increase in investments or capex
which results in LGT's adjusted net debt/EBITDAR leverage ratio
exceeding 1.5x. In addition, if the audited pro-forma financial
statements reveal a financial profile that is well below the
agency's current assessment for the newly merged entity, it will
also be negative for its ratings.
The agency expects that the three-way merger will benefit LGT as
the estimated 2009 combined revenues of KRW8.3tn (versus an
estimated KRW5.01 trillion for the standalone LGT in 2009E) will
provide greater business stability and economies of scale. Also,
the combined entity will have access to what was previously three
separate subscriber bases; therefore, allowing it to compete with
KT Corp and SK Telecom ('A'/Stable) more effectively in offering a
full range of telecom services in one bundled package.
===============
M A L A Y S I A
===============
AXIS INC: Receives Writ of Summons from OCBC Al-Amin Bank
---------------------------------------------------------
Axis Incorporation Berhad said that Axis and Asiapin Sdn Bhd have
been served with a Writ of Summons and Statement of Claim filed by
OCBC Al-Amin Bank Berhad at the High Court of Malaya at Johor
Bahru on December 2, 2009.
ASB and Axis received the Writ of Summons on December 28, 2009.
The Plaintiff's claims against Asiapin (as borrower of hire
purchase facilities granted by the Plaintiff to Asiapin) and
against Axis Incorporation, as guarantor of the said hire purchase
facilities in these amounts:
(a) IHP-I 1; MYR626,437.24 due as at November 4, 2009, with late
payment compensation at the prevailing Islamic Inter-bank
Money Market rate;
(b) IHP-I 2; MYR619,029.44 due as at November 4, 2009, with late
payment compensation at the prevailing Islamic Inter-bank
Money Market rate;
(c) IHP-I 3; MYR167,177.62 due as at November 4, 2009, with late
payment compensation at the prevailing Islamic Inter-bank
Money Market rate;
(d) IHP-I 4; MYR749,514.75 due as at November 4, 2009, with late
payment compensation at the prevailing Islamic Inter-bank
Money Market rate;
(e) IHP-I 5; MYR749,514.75 due as at November 4, 2009, with late
payment compensation at the prevailing Islamic Inter-bank
Money Market rate;
(f) IHP-I 6; MYR190,275.16 due as at November 4, 2009, with late
payment compensation at the prevailing Islamic Inter-bank
Money Market rate;
(g) IHP-I 7; MYR1,673,966.06 due as at November 4, 2009, with
further late payment compensation at the rate of 1% per
annum;
(h) IHP-I 8; MYR1,814,399.77 due as at November 4, 2009, with
further late payment compensation at the rate of 1% per
annum;
(i) IHP-I 9; MYR224,594.83 due as at November 4, 2009, with
further late payment compensation at the rate of 1% per
annum;
(j) IHP-I 10; MYR739,174.59 due as at November 4, 2009, with
further late payment compensation at the rate of 1% per
annum;
(k) IHP-I 11; MYR894,660.14 due as at November 4, 2009, with
further late payment compensation at the rate of 1% per
annum;
(l) IHP-I 12; MYR2,128,047.15 due as at November 4, 2009, with
further late payment compensation at the rate of 1% per
annum;
(m) Legal costs and costs to be taxed on a solicitor client
basis; and
(n) Other reliefs as the Court deems fit.
ASB and Axis is in the midst of taking legal advice from its
solicitors with regard to these claims and will instruct its
solicitors to defend these claims.
About Axis Inc.
Based in Johor Bahru, Malaysia, Axis Incorporation Berhad
(KUL:AXIS) -- http://www.chongee.com.my-- is principally engaged
in the business of investment holding. The company, through its
subsidiaries, is engaged in fabric knitting and dyeing, and
manufacturer of garments. Its subsidiaries include Asiapin Sdn.
Bhd., Chongee Enterprise Sdn. Bhd. and GBC Marketing Pte. Ltd. In
June 2008, Axis Incorporation Berhad announced the disposal of the
entire equity interest in Ganad Corporation Bhd.
On May 23, 2009, Axis Incorporation Berhad was classified as an
affected issuer under the Amended Practice Note No. 17/2005 and
Paragraph 8.14C of the Listing Requirements of Bursa Malaysia
Securities Berhad as the Company was unable to provide a solvency
declaration to Bursa Securities.
AXIS INC: Receives Writ of Summons from OCBC Bank
-------------------------------------------------
Axis Incorporation Berhad said that Axis and Asiapin Sdn Bhd have
been served with a Writ of Summons and Statement of Claim filed by
OCBC Bank (Malaysia) Berhad at the High Court of Johor Bahru on
December 2, 2009.
ASB and Axis received the Writ of Summons on December 28, 2009.
The Plaintiff's claims against Asiapin (as borrower of hire
purchase facilities granted by the Plaintiff to Asiapin) and
against Axis Incorporation, as guarantor of the said hire purchase
facilities in these amounts:
(a) Overdraft of MYR500,000.00
MYR536,059.23 due as at October 31, 2009, with interest
thereon at the rate of 1.5% per annum.
(b) Overdraft of MYR700,000.00;
MYR102,124.38 due as at October 31, 2009, with interest
thereon at the rate of 4.0% per annum.
(c) Trust Receipts (Tradeline Facility 1);
MYR4,389,417.08 (inclusive of outstanding principal sum of
MYR3,948,882.06) due as at October 31, 2009, with interest
at the rate of 2.5% per annum.
(d) Bankers Acceptance (Tradeline Facility 1);
MYR3,817,389.75 (inclusive of outstanding principal sum of
MYR3,473,069.72) due as at October 31, 2009, with interest
at the rate of 2.5% per annum.
(e) Trust Receipts (Tradeline Facility 2);
MYR4,607,259.57 (inclusive of outstanding principal sum of
MYR4,207,054.51) due as at October 31, 2009, with interest
at the rate of 2.5% per annum.
(f) Bankers Acceptance (Tradeline Facility 2);
MYR6,946,884.79 (inclusive of outstanding principal sum of
MYR6,259,189.61) due as at October 31, 2009, with interest
at the rate of 3.5% per annum.
(g) Bank Guarantee (as against Defendant A only);
Bank Guarantee sum of MYR600,000.00 due as at Oct. 31,
2009. In the event that the Plaintiff effects payment of
the said sum under its Bank Guarantee, interest shall also
be payable on the said sum to the Plaintiff at the rate of
2.5% per annum.
(h) Legal costs and costs to be taxed on a solicitor client
basis; and
(i) Other reliefs as the Court deems fit.
ASB and Axis is in the midst of taking legal advice from its
solicitors with regard to these claims and will instruct its
solicitors to defend these claims.
About Axis Inc.
Based in Johor Bahru, Malaysia, Axis Incorporation Berhad
(KUL:AXIS) -- http://www.chongee.com.my-- is principally engaged
in the business of investment holding. The company, through its
subsidiaries, is engaged in fabric knitting and dyeing, and
manufacturer of garments. Its subsidiaries include Asiapin Sdn.
Bhd., Chongee Enterprise Sdn. Bhd. and GBC Marketing Pte. Ltd. In
June 2008, Axis Incorporation Berhad announced the disposal of the
entire equity interest in Ganad Corporation Bhd.
On May 23, 2009, Axis Incorporation Berhad was classified as an
affected issuer under the Amended Practice Note No. 17/2005 and
Paragraph 8.14C of the Listing Requirements of Bursa Malaysia
Securities Berhad as the Company was unable to provide a solvency
declaration to Bursa Securities.
====================
N E W Z E A L A N D
====================
BIKEHQ: Goes Into Liquidation Amid Declining Sales
--------------------------------------------------
The New Zealand Press Association reports that Christchurch cycle
shop BikeHQ is in liquidation after a year in which the drop in
sales was described by director Ian Methven as "unprecedented".
The news agency, citing The Press, says the company was placed
into liquidation by shareholder resolution on January 13.
According to the NZPA, Mr. Methven said the high-end market focus
of the Christchurch BikeHQ store might have made it particularly
vulnerable to the recession.
EASY MIND: Waikato and Coromandel Branches Sold
-----------------------------------------------
The liquidators of Easy Mind Ltd. have found a buyer for the
Waikato and Coromandel branches of the collapsed childcare firm,
The New Zealand Herald reports.
The report relates RHB Chartered Accountants in Hamilton, the
appointed liquidators, said that Kids At Home Limited has bought
the Waikato and Coromandel branches.
According to the report, liquidator Tom Rodewald said it was
expected that the Ministry of Education would arrange a swift
transfer of licenses.
Mr. Rodewald said he was hopeful a buyer would be found for the
rest of the company's operations in the North Island, but said he
doubted anyone would want to buy the South Island network, the
Herald notes.
Easy Mind was put into liquidation earlier this month. The
company's South Island operation has been closed by liquidators,
resulting in the loss of almost 50 full time jobs, Radio
New Zealand reported.
Established in Hamilton, New Zealand, Easy Mind Ltd --
http://www.easymind.co.nz/-- provides early childhood education.
It has 15 centres in the Waikato, Whitianga, Gisborne, Hawke's
Bay, Manawatu, Wairarapa, Otago and Southland. It employed 23
administration staff, 30 early childhood teachers and 287 home-
based educators.
INDEPENDENT MAGAZINE: Placed in Voluntary Administration
--------------------------------------------------------
Independent Magazine Distributors Ltd. has been placed into
voluntary administration with creditors, believed to be mostly
book stores, unlikely to get all their money back, The National
Business Review reports.
According to the report, the voluntary administration relates to
the Independent Magazine Distributors Ltd business that was left
over when distribution rights for magazines were sold to PMP Ltd
last year.
The report relates administrator Steven Khov of Waterstone
Insolvency said in excess of $1.5 million was owed to creditors.
Mr. Khov expects there would be a shortfall but it was too early
to say how big it would be.
The report, citing a letter to creditors, says Independent
Magazine Distributors Ltd went into voluntary administration on
January 13. A first creditors meeting will be held on January 22.
Independent Magazine Distributors Ltd. -- http://www.imd.co.nz--
is a distributor and supplier of leading New Zealand magazines and
publications.
=================
S I N G A P O R E
=================
AGROSIN PRIVATE: Court to Hear Wind-Up Petition on February 5
-------------------------------------------------------------
A petition to wind up the operations of Agrosin Private Limited
will be heard before the High Court of Singapore on February 5,
2010, at 10:00 a.m.
Agroship Limited, International Potash Company (UK) Limited,
Andoman Trading & Shipping Co. Pte Ltd and Inter-Co Investments
Pte Ltd filed the petition against the company on January 14,
2010.
The Petitioner's solicitors are:
Allen & Gledhill LLP
One Marina Boulevard #28-00
Singapore 018989
ALLANDES CORPORATION: Meetings Set for January 29
-------------------------------------------------
Allandes Corporation Pte Ltd, which is in liquidation, will hold a
meeting for its contributories and creditors on January 29, 2009,
at 10:00 a.m., and 10:30 a.m., respectively at 8 Wilkie Road
#03-08 Wilkie Edge, in Singapore.
Agenda of the meeting includes:
a. to update on the status of liquidation;
b. to approve a first and final dividend to the preferential
creditors;
c. to approve the proposed Liquidators' fees; and
d. discuss other business.
The company's liquidators are:
Chee Yoh Chuang
Lim Lee Meng
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
IPACS COMPUTER: Creditors' Proofs of Debt Due February 1
--------------------------------------------------------
Creditors of Ipacs Computer Services(S) Pte Ltd, which is in
creditors' voluntary liquidation, are required to file their
proofs of debt by February 1, 2010, to be included in the
company's dividend distribution.
The company's liquidators are:
Ong Yew Huat
Seshadri Rajagopalan
c/o One Raffles Quay
North Tower, Level 18
Singapore 048583
TJ COSMETICS: Creditors Get 49.69%% Recovery on Claims
------------------------------------------------------
TJ Cosmetics Pte Ltd declared the first and final dividend on
January 20, 2010.
The company paid 49.69% to the received preferential claims.
The company's liquidator is:
Victor Goh
C/o Phoenix Corporate Advisory Pte Ltd
100 Tras Street
#16-03, Amara Corporate Tower
Singapore 079027
=============
V I E T N A M
=============
* Moody's Assigns 'Ba3' Foreign Currency Rating on Vietnam
----------------------------------------------------------
Moody's Investors Service has assigned a foreign currency rating
of Ba3 with a negative outlook to the government of Vietnam's
forthcoming global bond issuance.
Support for Vietnam's rating primarily comes from progress made in
externally oriented policies, which have boosted trade, investment
and income levels. Furthermore, ongoing state enterprise
restructuring and reform are helping to improve the structure of
the economy.
"In addition, public finances are manageable, even though the
deficit has swelled as a result of a robust stimulus package and
the adverse effects of the global financial crisis and recession,"
says Tom Byrne, a Moody's Senior Vice President. Although the
downturn in global trade dims somewhat Vietnam's near-term
economic prospects, the country's growth model retains the
potential to engender relatively vigorous growth over the long
term.
Moody's further notes that Vietnam's economic and political event
risks are low. Rapid growth and rising incomes in the past decade
have been accompanied by social and political stability.
"Prospects that Vietnam can continue on a path of relatively rapid
economic growth seem favorable, if policies are supportive," says
Mr. Byrne.
In this context, the negative outlook on the rating reflects
difficulty the authorities are encountering in conducting pro-
growth policies while maintaining macroeconomic stability and
anchoring inflationary expectations. This has spilled over into
the external accounts, placing downward pressure on the exchange
rate.
"We view the decline in official foreign exchange reserves in 2009
as a negative credit development," says Mr. Byrne.
"For Moody's to consider a change in the rating outlook to stable,
there would need to be a reduction in external imbalances and a
stemming of the loss of official foreign exchange reserves," says
Mr. Byrne. Such a development would likely require additional
monetary and fiscal policy adjustments, as well as a boost from
stronger external demand and improved global economic conditions.
The last rating action with respect to Vietnam was on 4 June 2008
when Moody's changed the rating outlook to negative from positive
on the government's Ba3 ratings.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
January 27-29, 2010
TURNAROUND MANAGEMENT ASSOCIATION
Distressed Investing Conference, Bellagio, Las Vegas
Contact: http://www.turnaround.org/
Feb. 21-23, 2010
INSOL
International Annual Regional Conference
Madinat Jumeirah, Dubai, UAE
Contact: 44-0-20-7929-6679 or http://www.insol.org/
April 20-22, 2010
TURNAROUND MANAGEMENT ASSOCIATION
Sheraton New York Hotel and Towers, New York, NY
Contact: http://www.turnaround.org/
Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Ritz-Carlton Amelia Island, Amelia, Fla.
Contact: http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Contact: http://www.abiworld.org/
October 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
*********
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 2010. 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 ***