/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100603.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, June 3, 2010, Vol. 13, No. 108 Headlines A U S T R A L I A ABC LEARNING: Creditors Voted to Wind Up Company ARK FUND: Voluntary Administrators Appointed BABCOCK & BROWN: Public Examination Set to Start in July BNY TRUST: S&P Raises Ratings on Four Classes of 2007-1 Notes EQUITTY PACKAGING: In Liquidation; Pitcher Partners Appointed NORTHERN PROJECTS: First Creditors' Meeting Set For June 8 * AUSTRALIA: Government to Reverse Sons of Gwalia Ruling H O N G K O N G ANHONG LIMITED: Ying and Chan Appointed as Liquidators CHINTUNG FUTURES: Final Meetings Slated for June 29 FAIRWAY ENGINEERING: Court to Hear Wind-Up Petition on July 21 FAIRWAY ENGINEERING (HK): To Hear Wind-Up Petition on July 21 FAR HERO: Inability to Pay Debts Prompts Wind-Up FREDERIQUE ACADEMY: Final Meeting Slated for July 2 FREDERIQUE HOLISTIC: Final Meeting Slated for July 2 GERMANICUS LIMITED: Inability to Pay Debts Prompts Wind-Up GOLD ART: Members' Final Meeting Set for July 5 GSA CAPITAL: Moyes and Yeung Step Down as Liquidators STAR EAST IT: Placed Under Voluntary Wind-Up Proceedings STAR EAST ON-LINE: Placed Under Voluntary Wind-Up Proceedings SUN HUNG: Creditors' Proofs of Debt Due June 28 WING HO: Creditors' Proofs of Debt Due June 21 I N D I A ARADHNA FABRICS: ICRA Assigns 'LBB' Rating on INR16.4MM Term Loan ARCVAC FORGECAST: CRISIL Lifts Rating on INR412.5 Mil. Loan to 'B' C.L. ENGINEERING: CRISIL Puts 'B+' Rating on INR60MM Cash Credit ICICI BANK: Bank of Rajasthan Deal Won't Affect Moody's Ratings KANODIA TECHNOPLAST: ICRA Assigns 'LB+' Rating on INR236.5MM Loans KINGFISHER AIRLINES: Plans US$100-Million GDR Issue in Q2 KINGFISHER AIRLINES: Narrows Annual Loss to INR1,647cr in FY2010 MRIDUL ENTERPRISES: ICRA Puts 'LBB' Rating on INR14.1MM Term Loan MUKTA INDUSTRIES: ICRA Rates INR150 Million LT Loan at 'LBB-' P L RAJU: CRISIL Assigns 'BB+' Rating on INR80 Million Overdraft PARAMOUNT POWDERS: CRISIL Rates INR70.0 Mil. Cash Credit at 'BB+' PRAKASH STEEL: ICRA Assigns 'LBB-' Rating on INR89 Mil. LT Loan SHREE ENTERPRISES: CRISIL Reaffirms 'B' Rating on INR35MM Debt SUN NIRMAN: ICRA Reaffirms 'LBB+' Rating on Working Capital Limits TATA MOTORS: Swings to INR2,571cr Profit in FY2010 TATA MOTORS: Total Sales in May 2010 Up 41% TTL MINERALS: CRISIL Rates INR60 Million Cash Credit at 'BB-' J A P A N JAPAN AIRLINES: Ends All Flights at Kobe Airport ORIX-NRL TRUST: S&P Downgrades Ratings on Class D & E to 'BB' K O R E A C&M CO: Moody's Downgrades Corporate Family Rating to 'B3' SSANGYONG MOTOR: Confirms Interest in Bidding For Ssangyong M A L A Y S I A JPK HOLDINGS: Swings to MYR1.06 Million Profit in Q4 2010 OILCORP BERHAD: Reports MYR13.28 MM Net Loss for March 31 Quarter N E W Z E A L A N D CANTERBURY BUILDING: Merger Won't Move S&P's Rating CRAFAR FARMS: Court Sets First Call-Over Date on July 26 MARAC FINANCE: Memorandum of Understanding Won't Move S&P's Rating SOUTHERN CROSS: Merger Won't Move S&P's Rating T A I W A N WAN HAI: S&P Changes Outlook on 'BB+' Corp. Rating to Stable - - - - - ================= A U S T R A L I A ================= ABC LEARNING: Creditors Voted to Wind Up Company ------------------------------------------------ The Sydney Morning Herald reports that ABC Learning creditors have voted to wind up the failed childcare provider. The report says 15 people attended a creditors' meeting in Brisbane on Wednesday to decide on the company's liquidation and receive a report from administrators. They voted in favor of a resolution to liquidate, the report notes. Based in Australia, ABC Learning Centers Limited (ASX: ABS) -- http://www.childcare.com.au/-- provides childcare services and education in more than 1,200 centers in Australia, New Zealand, the United States and the United Kingdom. The Company's subsidiaries include A.B.C. Developmental Learning Centers Pty Ltd., A.B.C. Early Childhood Training College Pty Ltd., Premier Early Learning Centers Pty Ltd., A.B.C. Developmental Learning Centers (NZ) Ltd., A.B.C. New Ideas Pty Ltd., A.B.C. Land Holdings (NZ) Limited and Child Care Centers Australia Ltd. On January 26, 2007, it acquired La Petite Holdings Inc. On February 2, 2007, it acquired Forward Steps Holdings Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In September 2007, the Company purchased the Nursery division (Leapfrog Nurseries) from Nord Anglia Education PLC. In June 2008, the Company completed the sale of a 60% stake in its United States business to Morgan Stanley Private Equity. * * * As reported in the Troubled Company Reporter-Asia Pacific on November 6, 2008, ABC Learning Centers Limited appointed Peter Walker and Greg Moloney of Ferrier Hodgson as voluntary administrators of the company and a number of its subsidiaries. Subsequent to the appointment of administrators, the company's banking syndicate appointed Chris Honey, Murray Smith and John Cronin of McGrathNicol as receivers. The Company filed its Chapter 15 petition in Wilmington Delaware, (Bankr. D. Del. Case No. 10-11711) on May 26, 2010. Joel A. Waite, Esq., at Young, Conaway, Stargatt & Taylor, represents the Debtor in the Chapter 15 case. ABC listed debts and assets of US$100 million to US$500 million. An affiliate, A.B.C. USA Holdings Pty Ltd., filed a separate Chapter 15 petition, also listing assets and debts of at least US$100 million. ARK FUND: Voluntary Administrators Appointed -------------------------------------------- The ARK Fund Limited has been placed into voluntary administration. Kimberley Andrew Strickland and David Ashley Norman Hurt of WA Insolvency Solutions were appointed voluntary administrators on June 1, 2010. "On May 31, 2010, the National Australia Bank served a written notice on the ARK Fund Limited terminating the Standstill Agreement between ARK and the NAB entered into on March 29, 2010," ARK said in a statement to the stock exchange. "As a result, the Board of ARK has formed the opinion that ARK is likely to become insolvent in the near future. "As a consequence of that opinion it has appointed Kimberley Andrew Strickland and David Ashley Norman Hurt as joint and several voluntary administrators of ARK," it said. Based in Australia, The ARK Fund Limited (ASX:ARJ) -- http://www.thearkfund.com.au-- is an agricultural property and water rights investment company. The Company buys agricultural property upon which reside established, income producing, horticultural, forestry and/or other agricultural businesses and once purchased rents these agricultural assets/businesses. The Company is focused on rural agricultural properties. ARK's Teak properties are located in far north Queensland. As at June 30, 2009, the Company has 30 properties and two substantial packing sheds that are located throughout Australia. BABCOCK & BROWN: Public Examination Set to Start in July -------------------------------------------------------- A public examination of the collapse of investment group Babcock & Brown Ltd is expected to start in July, The Sydney Morning Herald reports citing Babcock & Brown's liquidators. The report relates that the creditors were told at the meeting that the examinations were being delayed from the July 5 start date "due to the unavailability of potential examinees", and a short deferment is likely. According to a report of the meeting, lodged with the Australian Securities and Investments Commission this week, the public examinations were now likely to begin in the week of July 19, the report notes. According to SMH, the public examination is being funded by noteholders who stand to receive nothing from the $600 million they lent to Babcock, which was later revealed to be a shell company with few assets. The report states that the liquidators, led by Simon Cathro and Colin Drew of Deloittes, told the creditors' committee that the $550,000 raised from noteholders was sufficient for the nine-day public examination. The liquidators confirmed they were pursuing unfair preference claims. Mr. Cathro also said there had been strong interest from potential litigation funders "relating to various causes of action," according to SMH. According to the report, the examination will be conducted in the Federal Court in Sydney with a cast of former Babcock executives and board members called to the stand, including the former Babcock chief executive Michael Larkin, his predecessor, Phil Green, and the former chairman, Jim Babcock. About Babcock & Brown Headquartered in Sydney, Australia, Babcock & Brown Limited was 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. * * * As reported in the Troubled Company Reporter-Asia Pacific on March 13, 2009, Babcock & Brown appointed voluntary administrators after investors in the company's subordinated notes listed in New Zealand voted on March 13 against a special resolution to restructure the terms of the notes. Under the special resolution, the company's equity and subordinated note holders won't receive any return. Babcock & Brown appointed David Lombe and Simon Cathro of Deloitte Touche Tohmatsu as Voluntary Administrators. The TCR-AP reported on Aug. 25, 2009, that Babcock & Brown Ltd creditors voted to liquidate the company's assets. Deloitte said the vote empowers it to investigate matters surrounding the collapse of the group, including potential conflicts of interest between the boards of Babcock & Brown and affiliated company Babcock & Brown International Pty. Ltd. which held most of the group's assets. BNY TRUST: S&P Raises Ratings on Four Classes of 2007-1 Notes ------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on the class B, C, D, and E notes issued by BNY Trust Company of Australia Ltd. as trustee of Illawarra Series 2007-1 CMBS Trust. At the same time, Standard & Poor's affirmed the 'AAA' rating on the class A notes. The notes are backed by a portfolio of small-ticket commercial mortgage loans originated by IMB Ltd. The rating upgrades reflect S&P's opinion that the rated notes are adequately supported to withstand stresses that are commensurate with the higher rating levels. The underlying assets of the trust have displayed strong performance over the life of the transaction with historically low levels of arrears. Currently there are no loans in arrears for greater-than-30 days. The cumulative losses experienced to date form 0.1% of the original portfolio balance, and have been covered by excess spread. About 40% of the loan balance has been paid down to date. Under the sequential pay structure, there continues to be a build-up in credit support to the rated notes as the transaction amortizes. Although the portfolio has a concentration of interest-only loans (approximately 56% of the current outstanding balance), most of these loans will revert to principal-amortizing loans before the end of 2011. IMB, as originator and underwriter of the loans, assesses the borrower's ability to meet both principal and interest repayments over the life of the loan, to help mitigate concerns regarding payment shock to the borrowers at the end of the interest-only periods. Borrowers with loans that have reverted to a principal-amortizing structure after their interest- only periods, appear to have been able to manage the change in repayments, as seen by the low arrears levels and minimal losses experienced by the portfolio to date. The remaining portfolio is well seasoned, and a majority has an amortizing period of 15 years after the interest-only period. Illawarra Series 2007-1 CMBS Trust issued A$250.0 million of floating-rate notes in June 2007. The notes are backed by a pool of fully amortizing and interest-only loans that revert to fully amortizing Australian-dollar, fixed- and floating-rate loans. The loans were made to commercial borrowers and secured by first- registered mortgages over Australian commercial or residential properties. Ratings Raised Illawarra Series 2007-1 CMBS Trust Class Rating to Rating from ----- --------- ----------- B AAA AA C AA A D A- BBB E BB+ BB Rating Affirmed Name Class Rating ---- ----- ------ Illawarra Series 2007-1 CMBS Trust A AAA EQUITTY PACKAGING: In Liquidation; Pitcher Partners Appointed ------------------------------------------------------------- Equitty Packaging has entered liquidation and cut four of its 10 staff, ProPrint reports. The company owed AU$380,000 to the Australian Tax Office. Andrew Yeo of Pitcher Partners was appointed liquidator on May 19, following a court order prompted by a petition from the ATO. "A petition lodged by a trade creditor of the company was withdrawn due to the debt being paid just before the winding up of the company and the ATO made [an] application to be 'substituted' in the place of the petitioning creditor on the petition to wind up the company," Mr. Yeo told ProPrint. Six of the company's 10 employees had been retained while liquidators search for a buyer for the business, Mr. Yeo added. ProPrint relates Mr. Yeo said investigations into what caused Equitty to founder were "at their early stages and are ongoing". Equitty Packaging Pty Ltd specializes in sales of flexible packaging. The company expanded from its base in Sydney to open a Melbourne factory in 1997, before moving to a purpose built 2,700sqm factory in the suburb of West Sunshine in 2005. NORTHERN PROJECTS: First Creditors' Meeting Set For June 8 ---------------------------------------------------------- ABC News reports that liquidators for Northern Projects Management group, known as Ark Homes, will meet creditors next week after the company went into voluntary liquidation. According to the report, KordaMentha partner Bill Buckby said about 100 workers have had their employment terminated, with the north Queensland company owing AU$30 million, including AU$2 million in worker entitlements. ABC News relates Mr. Buckby said Ernst and Young has been appointed as receiver who will look after any assets and work in progress. "The steps forward from here is that there will be a creditors' meeting on June 8 and notices will be sent out to creditors to attend. Then there will be reports going out to creditors, subsequent to that will outline the position going forward," the report quoted Mr. Buckby as saying. Based in Townsville, North Queensland, Northern Projects Management group, is a construction and project management company. * AUSTRALIA: Government to Reverse Sons of Gwalia Ruling -------------------------------------------------------- The Australian Associated Press reports that the federal government is reversing a High Court ruling on how money from failed companies should be distributed. According to the news agency, corporate law minister Chris Bowen said changes to the Corporations Act would ensure that claims by shareholders of insolvent companies ranked after other creditors' claims. The report relates that this followed a High Court decision in the Sons of Gwalia case, in which the court found that the claims of some shareholders in the failed gold miner were not subordinate to other claims. The AAP relates Mr. Bowen said people invested in a company in the hope of sharing in its profits and, while they were entitled to expect proper disclosure from the company -- which was an issue in the Sons of Gwalia case -- they must accept they were taking a risk. In contrast, the report notes, creditors were not gambling on the company's future profitability. Often they were simply owed money for work they'd done or materials they'd supplied. According to the AAP, Mr. Bowen said the decision tended to shift the losses suffered by a company's shareholders to its unsecured creditors. This would have the effect of increasing the cost of unsecured debt and reducing the availability of credit. Debate on the Corporations Amendment (Sons of Gwalia) Bill 2010 was adjourned. ================ H O N G K O N G ================ ANHONG LIMITED: Ying and Chan Appointed as Liquidators ------------------------------------------------------ Ying Hing Chiu and Chan Mi Har on May 20, 2010, were appointed as liquidators of Anhong Limited. The liquidators may be reached at: Ying Hing Chiu Chan Mi Har Level 28, Three Pacific Place 1 Queen's Road East Hong Kong CHINTUNG FUTURES: Final Meetings Slated for June 29 --------------------------------------------------- Members and creditors of Chintung Futures Limited will hold their final meetings on June 29, 2010, at 2:30 p.m., and 3:00 p.m., respectively at 29th Floor, Caroline Centre, Lee Gardens Two, 28 Yun Ping Road, in Hong Kong. At the meeting, Ian Robinson, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. FAIRWAY ENGINEERING: Court to Hear Wind-Up Petition on July 21 -------------------------------------------------------------- A petition to wind up the operations of Fairway Engineering Limited will be heard before the High Court of Hong Kong on July 21, 2010, at 9:30 a.m. Hi Tech Pofessional Engineering Company Limited filed the petition against the company on May 7, 2010. The Petitioner's solicitors are: Messrs. George Chan & Co 15/F, Punfet Building 701 Nathan Road Mongkok, Kowloon, Hong Kong FAIRWAY ENGINEERING (HK): To Hear Wind-Up Petition on July 21 ------------------------------------------------------------- A petition to wind up the operations of Fairway Engineering (HK) Limited will be heard before the High Court of Hong Kong on July 21, 2010, at 9:30 a.m. Elite Crawler Crane Engineering Limited filed the petition against the company on May 7, 2010. The Petitioner's solicitors are: Messrs. George Chan & Co 15/F, Punfet Building 701 Nathan Road Mongkok, Kowloon, Hong Kong FAR HERO: Inability to Pay Debts Prompts Wind-Up ------------------------------------------------ Members of Far Hero Limited on May 22, 2010, resolved to voluntarily wind up the company's operations due to its inability to pay debts when they fall due. The company's liquidator is Ching Eng Chin. FREDERIQUE ACADEMY: Final Meeting Slated for July 2 --------------------------------------------------- Creditors and members of Frederique Academy of Holistic Health & Beauty Ltd will hold their final meeting on July 2, 2010, at 9:15 a.m., at Room 1408, World-Wide House, 19 Des Voeux Road, Central, in Hong Kong. At the meeting, Donald Meyer, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. FREDERIQUE HOLISTIC: Final Meeting Slated for July 2 ---------------------------------------------------- Creditors and members of Frederique Holistic Health & Beauty Spa Ltd will hold their final meeting on July 2, 2010, at 9:00 a.m., at Room 1408, World-Wide House, 19 Des Voeux Road, Central, in Hong Kong. At the meeting, Donald Meyer, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GERMANICUS LIMITED: Inability to Pay Debts Prompts Wind-Up ---------------------------------------------------------- Members of Germanicus Limited on May 18, 2010, resolved to voluntarily wind up the company's operations due to its inability to pay debts when they fall due. The company's liquidators are Bruno Arboit and Simon Richard Blade. GOLD ART: Members' Final Meeting Set for July 5 ----------------------------------------------- Members of Gold Art Chain Making Company Limited will hold their final general meeting on July 5, 2010, at 10:00 a.m., at Room 1205, 12/F., Inter-Continental Plaza, 94 Granville Road, Tsimshatsui, Kowloon, in Hong Kong. At the meeting, IP Kwun Ting, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GSA CAPITAL: Moyes and Yeung Step Down as Liquidators ----------------------------------------------------- Paul David Stuart Moyes and Betty Yuen Yeung stepped down as liquidators of GSA Capital (Hong Kong) Limited on May 28, 2010. STAR EAST IT: Placed Under Voluntary Wind-Up Proceedings -------------------------------------------------------- At an extraordinary general meeting held on April 23, 2010, creditors of Star East IT Management Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Stephen Liu Yiu Keung David Yen Ching Wai 62nd Floor, One Island East 18 Westlands Road Island East, Hong Kong STAR EAST ON-LINE: Placed Under Voluntary Wind-Up Proceedings ------------------------------------------------------------- At an extraordinary general meeting held on April 23, 2010, creditors of Star East On-Line Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Stephen Liu Yiu Keung David Yen Ching Wai 62nd Floor, One Island East 18 Westlands Road Island East, Hong Kong SUN HUNG: Creditors' Proofs of Debt Due June 28 ---------------------------------------------- Creditors of Sun Hung Cheung Hing Restaurant Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by June 28, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 3, 2010. The company's liquidator is: Messrs Ng Kwok Tung Chan Wai Kee Rooms 201-205, 2/F Alliance Building 130-136 Connaught Road Central, Hong Kong WING HO: Creditors' Proofs of Debt Due June 21 ---------------------------------------------- Creditors of Wing Ho King Realty Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by June 21, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 17, 2010. The company's liquidator is: Messrs Ng Kwok Tung Chan Wai Kee Rooms 201-205, 2/F Alliance Building 130-136 Connaught Road Central, Hong Kong ========= I N D I A ========= ARADHNA FABRICS: ICRA Assigns 'LBB' Rating on INR16.4MM Term Loan ----------------------------------------------------------------- ICRA has assigned 'LBB' rating to INR16.4 million term loan, INR113.8 million fund based and INR2.0 million non-fund based facilities of Aradhna Fabrics Pvt. Ltd. The outlook on the long- term rating is Stable. The assigned rating is constrained by AFPL's relatively small scale of operations in a fragmented market which limits the pricing power of the company and weak financial profile with low profitability and stretched debt coverage indicators. Given the low entry barriers, AFPL's business is susceptible to new capacity additions in the industry which could further impact the profitability of the company. The rating however, favorably factors in the improved demand prospects in the textile industry and the significant experience of the promoters in the manufacturing of knitted fabric. The conservative approach of management in the past is reflected in AFPL's moderate gearing. Forward integration into garment manufacturing would help the company to move up the value chain and improve its realizations. Recent Results During 2009-10, as per the provisional results, AFPL reported an operating income of INR468.1 million and an operating profit margin of 4.8%. About Aradhna Fabrics AFPL was incorporated in November 1995 and is promoted by Mr. Ashok Avasthi. The company started with the manufacturing of knitted fabric and during 2001-02, forward integrated into manufacturing of readymade garments for kids under its brand ATOZ and KIDS FIRST. However, due to fire at its garmenting unit in April 2007, the garmenting operations were suspended for ~2 years, which has been resumed since October 2009. Currently the company is primarily engaged into manufacturing of knitted fabric and manufacturing of garments on a job work basis for other apparel brands at its unit in Ludhiana (Punjab). ARCVAC FORGECAST: CRISIL Lifts Rating on INR412.5 Mil. Loan to 'B' ------------------------------------------------------------------ CRISIL has upgraded its ratings on Arcvac Forgecast Ltd's long- term bank facilities to 'B/Stable' from 'C', while reaffirming the short-term rating at 'P4'. Facilities Ratings ---------- ------- INR250.0 Million Cash Credit B/Stable (Upgraded from 'C') INR412.5 Million Term Loan B/Stable (Upgraded from 'C') INR100.0 Million Letter of P4 (Reaffirmed) Credit INR37.5 Million Bank Guarantee P4 (Reaffirmed) The upgrade reflects the gradual improvement in servicing of its credit facilities over the past 12 months. AFL's liquidity has improved following the increase in its cash accruals after the operations at its newly expanded facility stabilized in 2009-10 (refers to financial year, April 1 to March 31), and the increase of its order book. The upgrade also factors in CRISIL's expectation of sustained improvement in AFL's order book, resulting in increased cash accruals and subsequent improvement in the company's debt servicing ability over the medium term. The rating reflects AFL's below-average financial risk profile, marked by weak debt protection metrics, and its susceptibility to volatility in demand in the end-user industry and in input prices. These weaknesses are partially offset by the benefits that AFL derives from its established presence, and its promoters' experience, in the industrial forgings segment. Outlook: Stable CRISIL believes that AFL will continue to benefit from its promoters' industry experience and its established market position, over the medium term. The outlook may be revised to 'Positive' if there is more-than-expected improvement in AFL's operating revenues, margins, and debt protection metrics. Conversely, the outlook may be revised to 'Negative' if AFL's capital structure weakens considerably, most likely because of large, debt-funded capital expenditure, or if there is lower-than- expected offtake of its products. About Arcvac Forgecast Incorporated in 2003, AFL commenced commercial production in 2006. The company manufactures ingots and steel forgings. It has been promoted by the Chhajer family of Kolkata, which has been in the forging business since 1992 through the Smithy group of companies. The group, prior to AFL, had promoted Vikrant Forge Ltd, which is also in the business of industrial forging and machining. AFL has a forging capacity of 15,000 tonnes per annum. For 2008-09, AFL reported a profit after tax (PAT) of INR22 million on net sales of INR789.8 million, against a PAT of INR7.6 million on net sales of INR496 million for 2007-08. C.L. ENGINEERING: CRISIL Puts 'B+' Rating on INR60MM Cash Credit ---------------------------------------------------------------- CRISIL has assigned its 'B+/Stable/P4' ratings to C.L. Engineering Equipment (India) Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR60 Million Cash Credit B+/Stable (Assigned) INR7.25 Million Proposed LT B+/Stable (Assigned) Facility INR0.75 Million Bank Guarantee P4 (Assigned) The ratings reflect CL Engg's large working capital requirements, and below-average financial risk profile, marked by a high gearing, small net worth, and weak debt coverage ratios. These rating weaknesses are partially offset by the benefits that CL Engg derives from its promoters' experience in the construction equipment trading business. Outlook: Stable CRISIL believes that CL Engg will maintain its business risk profile over the medium term, backed by its relationship with its principal, Telco Construction Company Ltd. The outlook may be revised to 'Positive' if CL Engg's operating margin improves, or in case of equity infusion leading to significant increase in net worth. Conversely, the outlook may be revised to 'Negative' if the company's cash accruals decline sharply, deteriorating its financial risk profile. About C.L. Engineering CL Engg was set up as a partnership firm in 2000 by Mr. Aanam Venkata Ramana Reddy, and was reconstituted as a closely held private limited company in 2008. The company trades in construction equipment manufactured by Telco. CL Engg caters to customers in Andhra Pradesh. CL Engg reported a profit after tax (PAT) of INR2.6 million on net sales of INR 167 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR3 million on net sales of INR251 million for 2007-08. ICICI BANK: Bank of Rajasthan Deal Won't Affect Moody's Ratings --------------------------------------------------------------- Moody's Investors Service says that the proposed merger of ICICI Bank with Bank of Rajasthan will not have an impact on ICICI Bank's C- bank financial strength rating nor its Baa2 global local currency deposit rating and foreign currency senior unsecured debt rating. Over the longer term, Moody's expects ICICI Bank's franchise value to benefit from this merger but with no immediate positive impact on its ratings. Specifically, Moody's notes that ICICI Bank's proposal to merge with the relatively small private-sector Bank of Rajasthan will have either a limited or no effect on its financial fundamentals. Instead, Moody's notes that the proposed merger will add significant franchise value to ICICI Bank through BoR's existing network of 463 branches, mainly in the northern part of India. This would bring the total number of branches of ICICI Bank to around 2,500 throughout the country, thereby enhancing the retail network available for mobilizing deposits and distributing its products and services. Moody's also notes certain regulatory and corporate governance issues that BoR has had with the local authorities, although these irregularities were primarily related to the main shareholders of the bank (Tayal Group has a 55% stake according to the Securities and Exchange Board of India) and are not expected to have any adverse influence on the merged entity. BoR's loan book of around INR85 billion represents less than 5% of ICICI Bank's total loans and is not expected to cause any deterioration in the overall asset quality or create any credit concentrations. BoR reported a gross non-performing loans ratio of 3.5% in March 2010. Moody's does not expect any sizeable write-down from BoR's loan portfolio that would significantly affect ICICI Bank's net income. The same applies to BoR's investment book, which mainly comprises government securities and investments that qualify for statutory liquidity requirement (SLR). In addition, Moody's notes that BoR's full-year results as of March 2010 recorded a net loss of INR1.02 billion (US$22.7 million) mainly due to higher credit costs and much higher employee expenses, while recording a capital adequacy ratio of 7.52%, lower than the 9% regulatory minimum. Moody's believes that ICICI Bank's strong Tier 1 position of 14% as of March 2010 gives it the capacity to absorb any possible losses stemming from BoR's balance sheet, without compromising its financial standing and its ratings. In addition, Moody's estimates that BoR's volume of net NPLs combined with its restructured loans account for less than 6% of ICICI Bank's FY2010 (year ending March 2010) pre- provision income. Provided that this transaction is approved by the shareholders of the two banks and the regulators, Moody's also expects the possible merger of BoR into ICICI Bank to be a relatively smooth process given the past experience of ICICI Bank in taking over small private-sector banks such as Bank of Madura in March 2001 and Sangli Bank in December 2006. The integration of BoR into ICICI Bank's system and infrastructure should be a relatively easy task given that they both operate on the same core banking platform. Moreover, despite the expected resistance to this merger by BoR's around 4,000 employees , Moody's does not view this as a major impediment to the transaction and expects ICICI Bank to be able to easily absorb the staff, most of whom are branch-based. Looking ahead, Moody's expects ICICI Bank's franchise value to benefit from this merger but with no immediate positive impact on its ratings. Any upward rating pressure could develop once the bank leverages the increased branch network, resulting in an improved funding profile through a higher proportion of low cost retail deposits. This would in turn translate into higher net interest margins which -- when combined with a stronger asset quality and lower provisioning costs -- would mean a stronger, more solid and sustainable profitability base for the bank. Looking at ICICI Bank's full-year FY2010 results, the bank was able to marginally grow its bottom-line by 7.1%, driven mainly by the bank's treasury income, which increased by 166.6%. In fact, when excluding treasury income, the bank's core revenues (net interest income + fee income) declined by 7.2%, although this was mainly driven by the bank's conscious decision to consolidate its relatively risky retail portfolio (mainly unsecured personal loans and credit cards) as well as its high-cost term deposits, thereby focusing more on low-cost CASA (current accounts + savings accounts) deposits. The proportion of CASA deposits for the bank increased to 41.7% in March 2010 from 28.7% the year before. Over the past 12 months, ICICI Bank has continued to face asset quality challenges, with gross NPLs as of March 2010 standing at 5.06% compared to 4.32% the year before. However, Moody's notes the gradual decline in loan slippages into NPLs on a quarterly basis as the Indian economy accelerates back to its high-growth trajectory. The bank's volume of net NPLs declined by almost 12% from INR43.6 billion in December 2009 to INR38.4 billion in March 2010. According to recent data, the Indian economy grew by 8.6% during the fourth quarter ending March 2010 from a year earlier. The bank's capitalization levels remain comfortable with a CAR of 19.4% and a Tier 1 ratio of 14%, underpinning its BFSR of C-, which maps to a baseline credit assessment of Baa2. The last rating action for ICICI Bank was January 27, 2010, when the Upper Tier 2 notes were downgraded to Ba1 from Baa3 and the Hybrid Tier 1 Notes were downgraded to Ba2 from Ba1. Headquartered in Mumbai, India, ICICI Bank Ltd had total assets of INR3,634 billion (US$80.7 billion) at the end of March 2010. KANODIA TECHNOPLAST: ICRA Assigns 'LB+' Rating on INR236.5MM Loans ------------------------------------------------------------------ ICRA has assigned an 'LB+' rating to the INR236.5 million term loans and the INR175 million long-term fund based limits of Kanodia Technoplast Limited. ICRA has also assigned an A5 rating to the INR38.7 million short-term non-fund based sub-limits of KTL. The ratings are constrained by the unsatisfactory debt servicing in terms of delays in term loan installments, the relatively small size of operations in comparison to the size of the overall flexible packaging industry; high competition from other players in the fragmented industry; moderately high financial risk characterized by high working capital intensity, moderate gearing level and moderate coverage indicators along with tight liquidity position as reflected in high utilization levels of working capital limits. The ratings, however, factor in long experience of the promoter of KTL in the domestic flexible packaging materials business; healthy growth in revenues and customer base over the last few years; favorable demand prospects for flexible packaging material in the domestic market. About Kanodia Technoplast Kanodia Technoplast Ltd was incorporated in 1995 as a private limited company (converted to public limited in Dec 2009) to convert plain PE films into flexible packaging material. Later in 1997, the company entered into production of PE films to achieve backward integration. In 2006, the company also ventured into production of rotogravure cylinders as another step of backward integration. Over the last few years, KTL has expanded its capacities and its current capacity of laminates/laminated pouches is 9600 MTPA and the company meets 80-90% of its requirement of PE films through in-house production. KTL also set up 1.5 MW wind mill power plant in Rajasthan in March 2009. KTL is a closely held company and has been promoted by Mr. Chetan Kanodia and his wife Mrs. Meenu Kanodia. In 2008-09, KTL reported a Profit after tax (PAT) of INR66.9 million on an Operating Income of INR825.5 million. In H1 2009-10, as per provisional unaudited financials, the Firm has reported a PAT of INR35.8 million on an OI of INR549.6 million. KINGFISHER AIRLINES: Plans US$100-Million GDR Issue in Q2 --------------------------------------------------------- Kingfisher Airlines expects to come out with its US$100 million global depository receipts issue by July, The Press Trust of India reports citing a senior official. "I expect our (GDR) issue by early second-quarter. We have not fixed the date . . .," Ravi Nedungudi, Chief Financial Officer of UB Group, which owns the airline, told PTI. "We have not yet finalized the size nor its pricing," he said. The news agency says the Vijay Mallya-promoted airline also plans to raise another US$100 million via rights issue. Nedungudi said the proceeds from the GDR and the rights issue would be primarily used for reducing the company's debt, which, as at March 31 this year, stood at INR6,000 crore. About Kingfisher Airlines 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. * * * Kingfisher Airlines posted three consecutive net losses of INR21.40 billion, INR1.89 billion, and INR4.2 billion for the FY2007 through FY2009. KINGFISHER AIRLINES: Narrows Annual Loss to INR1,647cr in FY2010 ---------------------------------------------------------------- Kingfisher Airlines Ltd reported a net loss of INR1,647.22 crore for the fiscal ended March 31, 2010, down 23.01% from a net loss of INR2,139.65 crore for fiscal 2009, according to livemint.com. The report says the airline's improved performance was from better seat occupancy and cost reductions, even as sales dipped to INR5,067.91 crore, 3.26% less than INR5,238.98 crore in fiscal 2009. Kingfisher Airlines said in a statement that the carrier registered an improvement of INR1,047 crore in operating losses, livemint.com adds. Operating losses for fiscal 2010 stood at INR899.36 crore against INR1,806.64 crore in the previous fiscal. About Kingfisher Airlines 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. * * * Kingfisher Airlines posted three consecutive net losses of INR21.40 billion, INR1.89 billion, and INR4.2 billion for the FY2007 through FY2009. MRIDUL ENTERPRISES: ICRA Puts 'LBB' Rating on INR14.1MM Term Loan ----------------------------------------------------------------- ICRA has assigned an 'LBB' rating to the INR14.1 million outstanding term loans of Mridul Enterprises. ICRA has also assigned an A4 rating to the INR274 million short term fund and non-fund based bank limits of Mridul. The outlook on the long- term rating is stable. The ratings are constrained by the high competitive intensity in the home furnishings (and related products) business; the still weak and recovering export market scenario; vulnerability of profitability to forex risks and the Firm's high geographical and customer concentration risk. The ratings also factor in the modest financial risk profile of Mridul as reflected in its small scale; de-growth in revenues from FY08 onwards; low profitability margins and return indicators; high working capital intensity of the business and modest debt protection metrics. That apart, ICRA has favorably considered the experience of the promoters in the home furnishing business; the Firm's good client profile and track-record of repeat business; favorable demand prospects and the Firm's focus on the less price sensitive premium product segment. About Mridul Enterprises Mridul Enterprises is engaged in the manufacture and sale of home furnishing products including quilts, bed linens, table linens, cushion covers and other ancillary textile and some leather products. It is constituted as a partnership firm and has been promoted by the Gupta family with Mr. Ravi Raj Gupta heading its operations. The Firm was incorporated in 1986 and operates out of its manufacturing units located in Noida. In 2008-09, Mridul reported a Profit after tax (PAT) of INR2 million on an Operating Income (OI) of INR593 million. In 2009-10, as per provisional unaudited financials, the Firm has reported a PAT of INR12 million on an OI of INR572 million. MUKTA INDUSTRIES: ICRA Rates INR150 Million LT Loan at 'LBB-' ------------------------------------------------------------- ICRA has assigned 'LBB-' rating to INR150.00 million long term fund based facilities of Mukta Industries Pvt Ltd. The assigned rating carry stable outlook. The assigned rating factors in MIPL's weak financial profile characterized by its highly leveraged capital structure, low and volatile profit margins and weak coverage indicators. The ratings are also constrained by MIPL's small scale of operations, inherently low value addition in the trading business and competition from organized as well as the large unorganized sector. Mukta Industries Pvt Ltd has been in the business of trading in alloy steel products like flat, bars, billet, channels etc. The products have application in engineering, automobile and infrastructure industry. It sources the products from domestic suppliers. MIPL has its customer base located in major industrial and commercial centers of Gujarat. About Mukta Industries Mukta Industries Pvt Ltd was incorporated in December 2009 to take over the business of Mukta International which was established in 2006 in Ahmedabad. The company is engaged in trading of steel bars, rods, billets, channels, wire rods, plates of different grades. The product range has applications in engineering, automobile and infrastructure industry. Mukta Industries Pvt Ltd (formerly Mukta International) reported a net profit of INR6.6 million on an operating income of INR746.8 million in FY 2009 and INR5.4 million on an operating income of INR585.5 million in FY 10(9M). P L RAJU: CRISIL Assigns 'BB+' Rating on INR80 Million Overdraft ---------------------------------------------------------------- CRISIL has assigned its 'BB+/Stable/P4+' ratings to P L Raju Constructions Ltd's bank facilities. Facilities Ratings ---------- ------- INR80 Million Overdraft BB+/Stable (Assigned) INR240 Million Bank Guarantee P4+ (Assigned) The ratings reflect PLRC's exposure to risks related to sectoral concentration in revenue profile and large working capital requirements. These rating weaknesses are partially offset by PLRC's promoters' extensive experience in the civil construction industry, and its healthy order book. Outlook: Stable CRISIL believes that PLRC will continue to benefit from its promoters' experience in the construction industry and its healthy order book, over the medium term. The outlook may be revised to 'Positive' if PLRC sustains growth in its revenues and improves its profitability by adding on new clients and projects. Conversely, the outlook may be revised to 'Negative' if PLRC makes large investments in the real estate sector, its financial risk profile deteriorates significantly because of new working-capital- intensive projects, or its net worth erodes significantly because of large dividend payouts. About P L Raju Set up as a partnership firm in 1973 by Mr. PL Raju, PLRC was reconstituted as a private limited company in 1997 and as closely held public limited company in 1998. Based in Hyderabad, PLRC undertakes civil construction for the Indian Army and Navy. The company has executed site development, civil, structural construction, electrification, air conditioning, and water and sewage system projects. Currently, the company is being managed by sons of Mr. P L Raju. PLRC posted a provisional net profit of INR8 million on net sales of INR253 million for 2009-10 (refers to financial year, April 1 to March 31), against a profit after tax (PAT) of INR21 million on net sales of INR482 million for 2008-09. PARAMOUNT POWDERS: CRISIL Rates INR70.0 Mil. Cash Credit at 'BB+' ----------------------------------------------------------------- CRISIL has assigned its 'BB+/Stable/P4+' ratings to Paramount Powders Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR70.0 Million Cash Credit BB+/Stable (Assigned) INR15.0 Million Letter of Credit P4+ (Assigned) The ratings reflect PPPL's small scale of operations, large working capital requirements, and susceptibility to intense competition in the powder coating material industry, to volatility in raw material prices, and to fluctuation in the value of the Indian rupee. These rating weaknesses are partially offset by PPPL's moderate financial risk profile, marked by comfortable gearing and debt protection metrics, established market position, and promoter's experience in the powder coating material industry. Outlook: Stable CRISIL believes that PPPL will maintain its established market position and sustain its moderate financial risk profile, backed by steady cash accruals, over the medium term. The outlook may be revised to 'Positive' in case of a substantial increase in PPPL's scale of operations and net cash accruals. Conversely, the outlook may be revised to 'Negative' if PPPL's credit risk profile weakens, most likely because of large debt-funded capital expenditure (capex), or less?than-expected net cash accruals. About Paramount Powders Incorporated in 1997, PPPL manufactures powder coating material. The powder coatings are used for depositing a protective coating, mainly on components of white goods, capital goods, and automobile components. The company is promoted by the Badyal family of Hoshiarpur, Punjab, which is currently based in the UK, and is managed by Mr. Tarlochan Singh Badyal. The company's manufacturing facility in Gurgaon (Haryana) has four manufacturing lines. It is currently undertaking a capex programme for installing a fifth line at a total cost of around INR14 million. PPPL markets the powder to industrial users, either directly or through its network of around 30 distributors spread mainly across southern India, western Maharashtra, and the National Capital Region (NCR). PPPL is estimated to have posted a profit after tax (PAT) of INR12.9 million on net sales of INR302.1 million for 2009-10 (refers to financial year, April 1 to March 31), against a reported PAT of INR6.5 million on net sales of INR267.4 million for 2008-09. PRAKASH STEEL: ICRA Assigns 'LBB-' Rating on INR89 Mil. LT Loan --------------------------------------------------------------- ICRA has assigned the 'LBB?' rating to INR89.00 million long term fund based facility and A4 rating to INR11.60 million short term non fund based facility of Prakash Steel Corporation. The long term fund based rating carry stable outlook. The assigned rating factors in PSC's weak financial profile characterized by highly leveraged capital structure, low and volatile profit margins, weak coverage indicators and stretched liquidity position leading to full utilization of working capital limits from bank. The ratings also take into account PSC's small scale of operations limiting economies of scale and geographically clustered revenue profile. The ratings also account its exposure to competition from organized as well as unorganized players in the industry. Nevertheless, the rating also incorporates established track record of the company in manufacturing of steel products and operational backing from the group concern engaged in similar line of business. About Prakash Steel Prakash Steel Corporation has been in the business of manufacturing of bright bars for different grades of stainless steel and mild steel alloys for more than three decades. The firm derives revenue from domestic market and deals with different alloy steel grades. The product range has application in submersible pumps, automobiles and engineering industry. The firm reported an operating income of INR 402.2 Million and INR326.0 Million and profit after tax of INR3.3 Million and INR2.6 Million as on March 31, 2009 and December 31, 2009. SHREE ENTERPRISES: CRISIL Reaffirms 'B' Rating on INR35MM Debt -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Shree Enterprises Coal Sales Pvt Ltd continue to reflect Shree Enterprises' small scale of operations in the coal trading business, and its weak financial risk profile, marked by high gearing and a small net worth. These weaknesses are partially offset by the benefits that the company derives from its promoters' industry experience and its established relationships with customers. Facilities Ratings ---------- ------- INR35 Million Cash Credit B/Stable (Reaffirmed) INR55 Million Bills Discounting P4 (Reaffirmed) INR150 Million Bank Guarantee P4 (Reaffirmed) Outlook: Stable CRISIL believes that Shree Enterprises will maintain its business risk profile on the back of its established market presence and good relationships with customers and suppliers. The outlook may be revised to 'Positive' in case Shree Enterprises' capital structure improves, most likely because of sizeable equity infusion by promoters, or the company significantly improves and sustains its profitability. Conversely, the outlook may be revised to 'Negative' if Shree Enterprises' liquidity weakens, or it undertakes large, debt-funded capital expenditure. About Shree Enterprises Set up as a proprietorship firm in 1971, Shree Enterprises was reconstituted as a closely held company in 1995. The company trades in coal and procures coal from Coal India Ltd. The company also purchases coal from auctions conducted by two auction agents: Metal Junction Services Ltd and Metal & Scrap Trading Corporation Ltd. The company has service facilities in Jharsuguda (Orissa), Raigarh (Chhatisgarh), and Asansol and Kolkata (West Bengal). Shree Enterprises reported a profit after tax (PAT) of INR3.4 million on revenues of INR687 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR0.92 million on revenues of INR436 million for 2007-08. SUN NIRMAN: ICRA Reaffirms 'LBB+' Rating on Working Capital Limits ------------------------------------------------------------------ ICRA has reaffirmed the 'LBB+' rating to INR80 million working capital limits of Sun Nirman Infrastructure Private Limited. The outlook on the rating is stable. ICRA has also reaffirmed the A4+ rating to INR120 million non fund based facilities of SNIPL. The ratings continue to remain constrained by the company's moderate scale of operations, which increases its vulnerability to the competitive pressures of the construction industry; company's exposure to geographical risks owing to concentration of projects in and around Delhi and Rajasthan; and company's concentrated presence in the civil construction space which exposes it to any slowdown in this segment. The ratings however continue to draw comfort from the experience of the promoters in the business; limited exposure of SNIPL's profitability to adverse movement in raw material prices; company's ability to secure projects from reputed private sector clients; and a healthy order book position, which provides visibility to the revenues going forward. Further, the ratings also take into consideration the increase in profitability registered by the company on account of improvement in operational efficiency, and its low working capital intensity. Sun Nirman Infrastructure Private Limited is engaged in undertaking civil construction projects mainly in commercial, industrial and residential segments. The company was promoted in 2007 by Mr. R.B.L. Aggarwal, Mr. S.P. Bansal, and Mr. K. M. Aggarwal. Mr. R.B.L. Aggarwal and Mr. S.P. Bansal have long experience in the construction industry and have held senior positions in Central Public Works Department. The company reported Profit before Tax (PBT) of INR39.8 million on a turnover of INR816.98 million in FY 2010. TATA MOTORS: Swings to INR2,571cr Profit in FY2010 -------------------------------------------------- Tata Motors disclosed its consolidated financial results for the year ended March 31, 2010. Tata Motors reported consolidated profit after tax of INR2,571.06 crores for the year ended March 31, 2010, a significant turnaround from a loss of INR2,505.25 crores in the previous year. The consolidated financial performance is not comparable to the previous year 2008-09 on account of the acquisition of Jaguar Land Rover in June 2008. The company reported consolidated revenues (net of excise) at INR92,519.25 crores posting a growth of 30.5% over INR70,880.95 crores in the previous year. There has been strong volume growth both at Tata Motors and at Jaguar Land Rover. On March 30, 2010, the company has divested its controlling stake (20%) in Telco Construction Equipment Company Ltd. The resultant profit of INR1,057.92 crores is included in other income. Tata Motors has reported a Basic Earnings Per Share (EPS) of INR 48.64 in 2009-10 for its consolidated operations in 2009-10 as against a Loss Per Share of INR56.88 in 2008-09. Tata Motors Stand-Alone Financial Results Financial Year Ended March 31, 2010 Tata Motors gross revenue for the financial year 2009-10 was INR38,364.10 crores (2008-09: INR28,568.21 crores). The revenues (net of excise) at INR35,593.05 crores representing a growth of 38.9% over INR25,629.73 crores in the previous year. The PBT for the year is INR2,829.54 crores, an increase of 179.1% over INR1,013.76 crores previous year. The PAT for the year is INR2,240.08 crores, an increase of 123.7% over INR1,001.26 previous last year (after exceptional item of a loss of INR850.86 crores recognized on redemption of preference shares by TML Holdings Pte Ltd, Singapore, a wholly owned subsidiary of the company) Volume recovery led by introduction of new products and strong continued growth in the existing portfolio, continued focus on cost efficiencies and price increases undertaken by the company to combat strengthening commodity prices aided the company to grow realizations and deliver double digit operating margin of 11.74%. Operating profit (EBITDA) came in at INR4,178.28 crores in FY 2009-10 compared with INR1,752.44 crores in the previous year. Overall economic recovery, a benign liquidity environment along with government stimulus has driven domestic demand revival during the current year. In the domestic market, company's commercial vehicles sales increased by 41% to 373,842 units leading to a market share of 64.2%, up from 63.8% of last year. The growth was well supported by both the Medium and Heavy Commercial Vehicles and the Light Commercial Vehicles which grew by 36.5% and 44.4% respectively. During the year, the company launched and started sales of the Prima range of globally benchmarked Heavy Trucks. A number of variants from the Ace family were also introduced. Passenger Vehicles, including Fiat and Jaguar and Land Rover vehicles distributed in India, grew by 25.3% in the domestic market to 260,020 units. The market share for Tata passenger vehicles for the period stood at 12.4%. The company launched the new Indigo Manza and the Sumo Grande MK II during the second half of the year which improved company's market position in H2 compared with H1 in these segments. The company also ramped up the production of the Nano at the plant in Uttarakhand, and delivered 30,763 units of Nano during the year. Along with Fiat, the company has a joint market share of 13.7% in the industry. The company has planned several new product launches in the near future to defend and improve its market position. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 21, 2010, Moody's Investors Service upgraded Tata Motors Ltd's corporate family rating to B2 from B3. The outlook on the rating is positive. This rating action completes the rating review for possible upgrade initiated on March 2, 2010, when TML announced its TATA MOTORS: Total Sales in May 2010 Up 41% ------------------------------------------- Tata Motors Ltd said total sales (including exports) increased 41% in May 2010 to 56,779 vehicles from 40,196 vehicles sold in May 2009. The company's domestic sales of Tata commercial and passenger vehicles for May 2010 were 52,801 units, a 38% growth over 38,392 units sold in May last year. Cumulative sales (including exports) for the company for the fiscal are 113,978 units, a growth of 47% over 77,714 units sold last year. Commercial Vehicles The company's sales of commercial vehicles in May 2010 in the domestic market were 31,475 units, a 37% growth compared to 23,004 vehicles sold in May last year. LCV sales were 17,615 units, a growth of 22% over May last year. M&HCV sales stood at 13,860 units, a growth of 61% over May last year. Cumulative sales of commercial vehicles in the domestic market for the fiscal are 62,438 units, a growth of 36% over last year. Cumulative LCV sales are 35,421 units, a growth of 21% over last year, while M&HCV sales stood at 27,017 units, a growth of 62% over last year. Passenger Vehicles The passenger vehicles business reported a total sale and distribution offtake of 23,489 units (21,326 Tata + 2,163 Fiat) in the domestic market in May 2010, a 42% increase compared to 16,563 units (15,388 Tata + 1,175 Fiat) in May last year. Sales of Tata passenger vehicles were 21,326 units, a growth of 39% over May 2009. Sales of the Tata Nano were 3,550 units The Indica range sales were 8,468 units, lower by 15% over May last year. The Indigo range recorded sales of 6,600 units, a growth of 133% over May last year. The Sumo/Safari range accounted for sales of 2,708 units, higher by 6% over May last year. Jaguar Land Rover sales continued their upward trend since launch in June 2009. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal are 48,388 units (44,425 Tata + 3,963 Fiat), against 31,178 units (28,798 Tata + 2,380 Fiat) last year, a growth of 55%. Cumulative sales of the Nano are 7,075 units Cumulative sales of the Indica range are 17,504 units, lower by 6%. Cumulative sales of the Indigo family are 13,801 units, higher by 156%. Cumulative sales of the Sumo/Safari range are 6,045 units, higher by 27%. Exports The company's sales from exports at 3,978 vehicles in May 2010 registered a growth of 121% compared to 1,804 vehicles in May last year. The cumulative sales from exports for the fiscal at 7,115 units are higher by 132% over 3,065 units in the same period last year. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company. The company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. TML is listed on the Bombay Stock Exchange, the National Stock Exchange of India and New York Stock Exchange. It was ultimately 33.4% owned by the Tata Group as of December 2007. Tata Motors has operations in Russia and the United Kingdom. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 21, 2010, Moody's Investors Service upgraded Tata Motors Ltd's corporate family rating to B2 from B3. The outlook on the rating is positive. This rating action completes the rating review for possible upgrade initiated on March 2, 2010, when TML announced its TTL MINERALS: CRISIL Rates INR60 Million Cash Credit at 'BB-' ------------------------------------------------------------- CRISIL has assigned its rating of 'BB-/Stable' to TTL Minerals Exports Pvt Ltd's cash credit facility. Facilities Ratings ---------- ------- INR60 Million Cash Credit BB-/Stable (Assigned) The rating reflects TTL's deteriorating financial risk profile, and its vulnerability to cyclicality in the end-user steel industry and to unfavorable changes in government regulations regarding iron ore exports. These rating weaknesses are partially offset by TTL's moderate business profile, supported by the promoters established relationships with customers and suppliers. Outlook: Stable CRISIL believes that TTL will maintain its business risk profile on the back of its moderate order book and established relationships with customers and suppliers. The outlook may be revised to 'Positive' if TTL's business and financial risk profiles improve substantially, led by improvement in the company's scale of operations, and a corresponding improvement in its profitability. Conversely, the outlook may be revised to 'Negative' if the company contracts large debt owing to working capital intensive nature of operations, leading to deterioration in its financial risk profile, or if unfavorable regulatory changes regarding iron ore exports adversely affect the company's business risk profile. About TTL Minerals TTL was promoted in 2006 by Mr. Inderpal Singh Sandhu and Mr. Balaji Shrinivasalu. In 2007, Mr. Balaji Shrinivasalu exited TTL amicably, and Mr. Vikram Singh Sandhu, nephew of Mr. Inderpal Singh Sandhu, was inducted in the company as a director. The company, based in Kolkata, trades in iron ore fines and lumps. It procures iron ore fines from mine owners and traders around the mineral rich belt of Keonjhar and Sundargarh in Orissa against advance payments. The company sells iron ore fines mainly to exporters and lumps mainly to sponge iron units. TTL reported a profit after tax (PAT) of INR4 million on operating income of INR363 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR2 million on operating income of INR226 million for 2007-08. ========= J A P A N ========= JAPAN AIRLINES: Ends All Flights at Kobe Airport ------------------------------------------------ Japan Airline Corp. terminated all of its flights Monday at Kobe Airport as part of its restructuring, The Japan Times reports. JAL ended flights between Kobe and Shin-Chitose Airport in Hokkaido and Naha and Ishigaki airports in Okinawa, the report says. According to the report, JAL's withdrawal is a blow to the money- losing Kobe Airport, which is expected to suffer operating losses for both fiscal 2009 and 2010. The report notes the airport will lose much of the its landing fees, a pillar of its operations. In 2009, JAL flights accounted about 35% of its landing fees of JPY690 million, the report adds. Japan Air Commuter Co., a JAL unit, also on Monday terminated all its flights from Matsumoto airport in Nagano Prefecture, including flights bound for Sapporo, Osaka and Fukuoka. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-based company mainly engaged in the provision of air transport services. The Company is active in five business segments through its 203 subsidiaries and 83 associated companies. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. Japan Airlines Corporation, Japan Airlines International Co., Ltd. and JAL Capital Co., Ltd., on January 19, 2010, filed the petitions to commenced corporate reorganization proceedings with the Tokyo District Court. The Court appointed the Enterprise Turnaround Initiative Corporation of Japan and Eiji Katayama, Esq., as reorganization trustees. Japan Airlines Corp. filed for reorganization January 19 in the Tokyo District Court and filed a Chapter 15 petition in New York (Bankr. S.D.N.Y. Case No. 10-10198). The Company said debt is $28 billion. Bankruptcy Creditors' Service, Inc., publishes Japan Airlines Bankruptcy News. The newsletter tracks the Chapter 15 proceedings and the bankruptcy proceedings in Tokyo undertaken by Japan Airlines Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ORIX-NRL TRUST: S&P Downgrades Ratings on Class D & E to 'BB' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on ORIX-NRL Trust 18's trust certificates classes D and E to 'BB' from 'BBB' and 'BB-' from 'BBB-', respectively, and placed its ratings on classes B through E on CreditWatch with negative implications. At the same time, S&P affirmed the ratings on classes A and X. The transaction was originally secured by four non-recourse loans and specified bonds (tokutei shasai). Currently, two specified bonds are outstanding. The downgrade and CreditWatch placements reflect these factors: * The specified bond that matures in November 2010, which accounts for 21.6% of the original issue amount, has subordinated bonds, and the loan-to-value level rises considerably when the subordinated bond is incorporated. As such, the possibility of repayment by maturity will be relatively low. Considering the current real estate market environment, S&P expects recoveries from the underlying real estate properties to be stressed. * Regarding the other specified bond that matures in August 2012, which accounts for 42.7% of the original issue amount, the underwriting value of the underlying real estate property is under downward pressure, even though some time remains until maturity, as performance of a hotel that backs the bond is deteriorating, according to the servicer report. Standard & Poor's has yet to complete examination of the expected recoveries from the underlying real estate properties. However, if the two specified bonds are not redeemed by their respective maturities, S&P considers that the recovery amount will be lowered inevitably to a certain degree. Accordingly, S&P lowered S&P's ratings on classes D and E. Standard & Poor's will complete examination of expected recoveries from the underlying real estate properties, and will confirm the asset manager's policy for redemption and liquidation as well as a policy for improving performance of the hotel. Standard & Poor's will then review its ratings on the four tranches placed on CreditWatch with negative implications. S&P affirmed the ratings on classes A and X. The affirmation of class A reflects these two factors: * Two out of four loans that backed the transaction initially, which accounted for 35.4% of the initial issue amount, were redeemed on the maturity date in May 2010. The repayment proceeds will be applied to redemption of the trust certificate via a sequential payment from the senior class. Accordingly, the credit support level for the class A certificate is expected to improve. * Although the expected recovery from one of the two outstanding specified bonds, which accounts for 21.6% of the initial issue amount, is under pressure, the actual performance of cash flow is better than initially expected and is unlikely to put material pressure on the specified bond. As such, there will be only a limited impact on class A. This is a multi-borrower CMBS transaction secured by four non- recourse loans and specified bonds to four obligors and backed by nine real estate properties and real estate certificates. This transaction was arranged by ORIX Corp., and ORIX Asset Management & Loan Services Corp. acts as a servicer. The ratings address the full and timely payment of interest and the ultimate repayment of principal by the transaction's legal final maturity date for the class A certificates, the full payment of interest and ultimate repayment of principal by the legal maturity date for the class B to E certificates, and the timely payment of available interest for the interest-only class X certificates. Ratings Lowered/Placed On Creditwatch Negative ORIX-NRL Trust 18 JPY23.4 billion trust certificates due September 2014 Class To From Initial Amount Coupon ----- -- ---- -------------- ------ D BB BBB JPY1.5 bil. Floating E BB- BBB- JPY0.3 bil. Floating Ratings Placed On Creditwatch Negative Class Rating Initial Amount Coupon ----- ------ -------------- ------ B AA JPY2.4 bil. Floating C A JPY1.8 bil. Floating Ratings Affirmed Class Rating Initial Amount Coupon ----- ------ -------------- ------ A AAA JPY17.4 bil. Floating X AAA JPY23.4 (notional principal) ========= K O R E A ========= C&M CO: Moody's Downgrades Corporate Family Rating to 'B3' ---------------------------------------------------------- Moody's Investors Service has downgraded C&M Co. Ltd's local currency corporate family rating and C&M Finance Ltd's senior unsecured bond rating to B3 from B2; the outlook on the ratings is stable. "The rating action reflects C&M's extremely high consolidated debt/EBITDA metrics (FY 2009 9.2x) with limited prospect for material deleveraging in the near term," says Laura Acres, a Moody's Vice President and Senior Credit Officer. Moody's views C&M's debt profile on a fully consolidated basis following the takeover in March 2008 by a consortium (of financial and strategic investors led by MBK Partners and the Macquarie Korean Opportunities Fund. The acquisition financing including KWR1.2 trillion in term loans and a KWR300 billion interest tranche, was structured through a special purpose entity, Kookmin Cable Investment. Whilst there are restrictions on the ability of C&M to upstream cash to KCI, ultimately KCI relies on the dividend flow from C&M to meet its debt repayment obligations. "The rating downgrade also reflects KCI's ongoing reliance on the KWR300 billion interest facility to service the acquisition debt and Moody's expectation that this facility will be fully utilized before maturity of the acquisition facilities in 2013, unless additional monies can be up streamed to KCI; this could potentially result in a cross default to C&M," says Acres, also Moody's Lead Analyst for the company. "Furthermore, C&M continues to see intense competition from the larger and better capitalized telecommunications operators who are expected to aggressively build their IPTV platforms in terms of both content and subscribers," adds Acres, "This has resulted in the wider cable-TV industry losing subscriber numbers over the course of 2009, a trend which Moody's strongly suspects will continue for the foreseeable future." On a fundamental level, C&M maintains a highly competitive position consistent with a monopoly or duopoly status in substantially all of its areas of operation; the company also has highly attractive EBITDA margins, albeit declining, relative to its peer group and continues to attract new subscribers. These strengths partially mitigate the company's high financial leverage and the potential threat from IPTV, positioning it at the B3 rating level with a stable outlook. Upward pressure on the rating is unlikely over the short-to-medium term. However, upward pressure could emerge should C&M deliver on its digitalization and bundling strategies such that adjusted consolidated debt/EBITDA falls below 7.5-8x. Moody's would also like to have its concerns over the interest facility allayed such that there remains sufficient headroom under the facility cap. The ratings may encounter further downward pressure should ongoing competitive pressures cause ARPU levels to deteriorate further such that adjusted EBITDA margins fall below 45% or adjusted consolidated debt/EBITDA fails to trend below 9.0x on a sustained basis. Given the private equity structure, Moody's would also be concerned if the shareholders sought to pull more cash out of C&M than anticipated, through such methods as inter-company loans or special dividends. The last rating action was on January 20, 2009, when C&M's ratings were downgraded to B2 with a negative outlook. C&M is the third largest multi-system cable television operator based on subscribers (2.3 million as at December 2009), with a market share of approximately 17%. C&M owns 15 affiliated system operators each of which are a monopoly or duopoly provider in their respective service regions. The company also provides internet access service to 0.48 million subscribers and Voice over Internet Protocol services to more than 0.1 million. In March 2008 C&M was acquired by a consortium of financial and strategic investors led by MBKP and MKOF. Following the acquisition, 94% of shares in C&M are held through KCI, a special purpose vehicle, which is in turn wholly owned by the Consortium. SSANGYONG MOTOR: Confirms Interest in Bidding For Ssangyong ----------------------------------------------------------- India's Mahindra & Mahindra Ltd. is interested in bidding for Ssangyong Motor Co., Bloomberg News reports. "We think Ssangyong will be a good fit for us because we are in a similar business of making utility vehicles," the report quoted Pawan Goenka, president of the Indian company's automotive division, as saying. The acquisition of Ssangyong would give Mahindra access to technology as well new export markets, as it aims to sell more vehicles overseas. "They are in a geography we aren't in," Goenka said. About 14% of Mahindra's revenue in the year ending March 2009 came from outside India, according to data compiled by Bloomberg. As reported in the Troubled Company Reporter-Asia Pacific on June 1, 2010, Yonhap News said seven companies submitted initial bids for Ssangyong Motor on May 28, as it concluded accepting preliminary bids for the takeover. The company began accepting letters of intent on May 10 from potential buyers, who will take over a majority of its stake. It will choose a preferred bidder in August from the preliminary bidders, Yonhap reported citing an executive from Ssangyong. "As the process of accepting letters of intent concluded, Ssangyong Motor and sale management companies will review the bidders and notify them of future courses on June 4, followed by the distribution of information packages to the bidders on June 7," Yonhap cited Ssangyong in a press release. The company will receive official offers by July 20 following an inspection of the bidders June 7 through July 16, it added. According to Yonhap, Ssangyong did not reveal the names of individual bidders at their request but industry sources said they included Young An Hat Co., a local headwear company that also owns local bus maker Daewoo Bus Co., and India's top vehicle and Mahindra & Mahindra Ltd. Bloomberg News, citing MoneyToday, reports potential bidders, including Renault Samsung Motors Co., may have to offer at least KRW700 billion to cover the automaker's debt. Samjong KPMG, a South Korean unit of the global services firm KPMG, and Macquarie Securities are managing the sale. 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. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 12, 2009, Ssangyong Motor Co. filed for receivership with the Seoul Central District Court to stave off a complete collapse. In February, 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. A TCR-AP report on Sept. 16, 2009, said Ssangyong Motor submitted a revival plans to the Seoul Central District Court seeking capital reduction and a debt-for-equity swap by creditor. A South Korean bankruptcy court approved in December Ssangyong Motor's restructuring plan despite opposition by some bondholders, the TCR-AP reported on Dec. 18, 2009. =============== M A L A Y S I A =============== JPK HOLDINGS: Swings to MYR1.06 Million Profit in Q4 2010 --------------------------------------------------------- JPK Holdings Berhad reported net income of MYR1.06 million on MYR4.49 million of revenue for the fourth quarter ended March 31, 2010, compared with a net loss of MYR6.59 million on MYR8.34 million of revenue in the same quarter of 2009. At March 31, 2010, the company's consolidated balance sheet showed MYR74.38 million in total assets, MYR59.54 million in total liabilities, and MYR14.84 million in total stockholders' equity. The company's consolidated balance sheet showed strained liquidity with MYR22.33 million in total current assets available to pay MYR37.28 million in total current liabilities. A full-text copy of the company's quarterly report is available for free at http://ResearchArchives.com/t/s?63da About JPK Holdings JPK Holdings Berhad is a Malaysia-based investment holding company engaged in the provision of management services to its subsidiaries. The Company's subsidiaries include JPK (Malaysia) Sdn. Bhd., which is engaged in the manufacture of precision plastic injection moulded parts; JPK Industries Sdn. Bhd., which is engaged in property holding; JPK Co. Ltd., which is engaged in investment holding; JPK (Dongguan) Co. Ltd., which is engaged in the Manufacture of precision plastic injection moulded parts, and JPK (Hanoi) Co. Ltd., which is engaged in the manufacture, assemble, process and design precision plastic injection moulded parts. The Company's operating businesses are organized and managed into three geographical locations: Malaysia, The Socialist Republic of Vietnam and The People's Republic of China. * * * JPK Holdings Berhad has been considered as an Affected Listed Issuer under Practice Note No. 17 of the Bursa Malaysia Securities Berhad as the external auditors of the Company have expressed a disclaimer opinion on the Company's audited financial statements for the financial year ended March 31, 2009. OILCORP BERHAD: Reports MYR13.28 MM Net Loss for March 31 Quarter ----------------------------------------------------------------- OilCorp Berhad reported a net loss of MYR13.28 million on revenues of MYR24.97 million for the three months ended March 31, 2010, compared with a net income of MYR1.53 million on revenues of MYR72.96 million for the same period ended March 31, 2009. At March 31, 2010, the Company's consolidated balance sheets showed MYR438.58 million in total assets and MYR632.38 million in total liabilities, resulting in total shareholders' deficit of MYR193.80 million. The Company's consolidated balance sheets at March 31, 2010, also showed strained liquidity with MYR207.33 million in total current assets available to pay MYR623.98 million in total current liabilities. A full-text copy of the Company's quarterly report is available for free at http://ResearchArchives.com/t/s?63db About Oilcorp Berhad Oilcorp Berhad is a Malaysia-based investment holding company. The Company operates in five segments: oil and gas and engineering, which includes engineering, procurement, construction and contract-related services in oil and gas related industries; property investment/resort, which includes property and resort operations and related activities and services; investment holding, which includes investment holding; fisheries, which includes deep sea fishing operations and related activities, and overseas special project (construction), which includes engineering, procurement, construction and contract-related sources in non oil and gas industries related industries. Its wholly owned subsidiaries include Oil-Line Engineering & Associates Sdn. Bhd., D'Tiara Corp Sdn. Bhd., Layar Visi Sdn. Bhd. and D'Tiara Corp Limited. Oilcorp Berhad has been classified as an Affected Listed Issuer under Practice Note 17/2005 of Bursa Malaysia Securities Berhad as the Company is unable to provide a solvency declaration to Bursa Securities following a default in its interest payments pursuant to Practice Note 1/2001. ==================== N E W Z E A L A N D ==================== CANTERBURY BUILDING: Merger Won't Move S&P's Rating --------------------------------------------------- Standard & Poor's Rating Services said that its ratings on MARAC Finance Ltd. (BB+/Negative/B), Canterbury Building Society (BB+/Stable/B), and Southern Cross Building Society (BB/Stable/B) are unchanged after the companies' joint announcement that they have entered into a Memorandum of Understanding to amalgamate their businesses into one merged entity, and subsequently apply for a banking license. S&P notes that the merger is subject to a number of factors including completion of due diligence, and shareholder and regulatory approvals. Should the merger be completed, debt providers could benefit from a larger and more diversified financial institution with more than NZ$2 billion in total assets and a significant capital base. CRAFAR FARMS: Court Sets First Call-Over Date on July 26 -------------------------------------------------------- The New Zealand Herald reports that the receivers for the Crafar dairy empire will finally get their day in court next month. The report relates Michael Stiassny of KordaMentha said a first call-over date had been set down for July 26 in Rotorua. According to the report, receivers are trying to get a court order to remove Allan Crafar from his Reporoa property, after he rejected an offer for six months' free rent if he left the farm on April 9. KordaMentha said Mr. Crafar, as the director of Plateau Farms Limited (in receivership), no longer controlled the properties and therefore had no legal right to be living there. Mr. Crafar has always maintained he would defend any court action brought against him by receivers. About Crafar Farms Crafar Farms, New Zealand's largest family owned dairy business, runs about 20,000 milking cows, and carries about 10,000 of other stock. The company employs 200 staff. Crafar Farms was placed in receivership by its lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson Finance in October 2009. The banks are owed around NZ$200 million and put KordaMentha partners Michael Stiassny and Brendon Gibson in as receivers after Crafar Farms breached covenants on its loans. The New Zealand Herald said CraFarms' banks have been working with the Ministry of Agriculture and Forestry, Federated Farmers and Fonterra to ease the Crafars out of their business. This follows multiple convictions for environmental lapses and animal neglect in recent years and the revelation on September 28, 2009, from interest.co.nz of animal neglect on one of its large farms in the King Country near Benneydale. MARAC FINANCE: Memorandum of Understanding Won't Move S&P's Rating ------------------------------------------------------------------ Standard & Poor's Rating Services said that its ratings on MARAC Finance Ltd. (BB+/Negative/B), Canterbury Building Society (BB+/Stable/B), and Southern Cross Building Society (BB/Stable/B) are unchanged after the companies' joint announcement that they have entered into a Memorandum of Understanding to amalgamate their businesses into one merged entity, and subsequently apply for a banking license. S&P notes that the merger is subject to a number of factors including completion of due diligence, and shareholder and regulatory approvals. Should the merger be completed, debt providers could benefit from a larger and more diversified financial institution with more than NZ$2 billion in total assets and a significant capital base. SOUTHERN CROSS: Merger Won't Move S&P's Rating ---------------------------------------------- Standard & Poor's Rating Services said that its ratings on MARAC Finance Ltd. (BB+/Negative/B), Canterbury Building Society (BB+/Stable/B), and Southern Cross Building Society (BB/Stable/B) are unchanged after the companies' joint announcement that they have entered into a Memorandum of Understanding to amalgamate their businesses into one merged entity, and subsequently apply for a banking license. S&P notes that the merger is subject to a number of factors including completion of due diligence, and shareholder and regulatory approvals. Should the merger be completed, debt providers could benefit from a larger and more diversified financial institution with more than NZ$2 billion in total assets and a significant capital base. =========== T A I W A N =========== WAN HAI: S&P Changes Outlook on 'BB+' Corp. Rating to Stable ------------------------------------------------------------ Standard & Poor's Ratings Services said that it had revised its outlook on the 'BB+' long-term corporate credit rating on Taiwan- based Wan Hai Lines Ltd. to stable from negative and affirmed the rating. At the same time, the rating agency affirmed its 'BB' issue rating on the unsecured corporate bonds issued by the company's Singapore-based subsidiary, Wan Hai Lines (Singapore) Pte. Ltd. "In S&P's view, Wan Hai's improving cash flow and low capital expenditures have improved the outlook on its credit profile. The company is likely to lower its leverage and improve its cash flow protection measures over the next three to four quarters," said credit analyst Raymond Hsu. Recovering freight rates and demand helped improve Wan Hai's reported operating income to Taiwan dollar (NT$) 1.3 billion in the first quarter of 2010, up from a loss of NT$1.2 billion in the same period in 2009, on the back of 28% year-on-year revenue growth. In addition, Wan Hai's leading market position in the relatively stable intra-Asia container shipping market and its high flexibility to adjust its service network should support faster recovery in its profitability than for its long-haul peers. Wan Hai's lease adjusted ratio of funds from operations to debt was 26.5% in the first quarter of 2010, and S&P believes that is satisfactory for the current ratings. Standard & Poor's expects the ratio to improve to about 34% in full-year 2010. S&P also believes the company's lease adjusted ratio of debt to capital will decrease to about 45% at the end of 2010, from 52% at the end of 2009. "S&P affirmed the ratings to reflect Wan Hai's continuing strong market position in intra-Asia container routes and its high operational flexibility," said Mr. Hsu. "Counterbalancing factors include the highly cyclical nature of the container shipping industry and the company's somewhat weak and limited presence in the long-haul market." In S&P's view, Wan Hai has adequate liquidity to support its operating needs. The company had NT$18.2 billion in cash and liquid financial investments at the end of March 2010. This is sufficient to cover its long-term debt due in one year of NT$5.7 billion and potential early debt repayments caused by a potential breach of loan covenants. ********* 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 T. Fernandez, 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 ***