/raid1/www/Hosts/bankrupt/TCRAP_Public/100623.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, June 23, 2010, Vol. 13, No. 122
Headlines
A U S T R A L I A
SIGMA PHARMACEUTICALS: Macquarie Downgrades Rating to Underperform
C H I N A
AGRICULTURAL BANK: Kuwait Fund to Invest US$800 Million in IPO
CHINA CONSTRUCTION: Central Huijin Backs Planned Rights Issue
H O N G K O N G
CITIC BANK: Moody's Affirms 'D+' Bank Financial Strength Rating
GREAT TIME: Tse Ka Yee Appointed as Liquidator
HOUSE OF EXCELLENCE: Members' Final Meeting Set for July 19
LINGUAPHONE CHINA: Placed Under Voluntary Wind-Up Proceedings
M SINO: Ng and Bots Appointed as Liquidators
MARVEL LIGHT: Creditors' Proofs of Debt Due July 20
MUTUAL FAITH: Pang Wai Kui Steps Down as Liquidator
NLV LIMITED: Creditors' Proofs of Debt Due July 20
NORITAKE HK: Members' Final General Meeting Set for July 23
OMEGA CAPITAL: Moody's Withdraws 'C' Rating on Series 24 Notes
I N D I A
CABCON INDIA: CRISIL Upgrades Rating on INR15MM Term Loan to 'BB-'
COGENT ENGINEERS: CRISIL Puts 'BB-' Rating on INR34.3M Cash Credit
GAUTAM TECHNOCAST: CRISIL Places 'BB' Rating on INR5.6MM Term Loan
KEJRIWAL BEE: CRISIL Assigns 'BB' Rating on INR28.4MM Term Loan
LANCO HILLS: CRISIL Assigns 'BB' Rating on INR6.75BB LT Loans
LINGARAJ PIPES: CRISIL Rates INR50 Million Cash Credit at 'BB'
MEERA COTTON: CRISIL Assigns 'BB' Rating on INR60MM Term Loan
MILI STEELS: Low Net Worth Prompts CRISIL's 'BB-' Rating
P.R. NAYAK: CRISIL Assigns 'BB' Rating on INR7.40MM LT Loan
RAIN CII: S&P Changes Outlook to Positive; Keeps 'B' Rating
SANGAM INTERNATIONAL: CRISIL Reaffirms 'P4+' Rating on Bank Debts
SWASTIK POWER: CRISIL Rates INR1049.5 Million Term Loan at 'B'
TRINIITY COLOUR: CRISIL Puts 'BB-' Rating on INR74.3MM LT Loan
VISITOR GARMENTS: CRISIL Reaffirms 'BB+' Ratings on Various Debts
XINDIA STEELS: CRISIL Assigns 'BB+' Rating on INR1.62BB LT Loan
ZYG PHARMA: CRISIL Puts 'BB+' Ratings on Various Bank Facilities
I N D O N E S I A
BANK CENTRAL: Moody's Changes Ba3 Rating Outlook to Positive
BANK CIMB-NIAGA: Moody's Changes Ba3 Rating Outlook to Positive
BANK DANAMON: Moody's Changes Ba3 Rating Outlook to Positive
BANK INTERNASIONAL: Moody's Changes Ba3 Rating Outlook to Positive
GARUDA INDONESIA: Seeks US$2 Billion in Loans for Fleet Expansion
MATAHARI PUTRA: Moody's Confirms 'B1' Corporate Family Rating
PERUSAHAAN GAS: Moody's Gives Positive Outlook on 'Ba2' Rating
PERUSAHAAN LISTRIK: Moody's Gives Positive Outlook on 'Ba2' Rating
GARUDA INDONESIA: Seeks US$2 Billion in Loans for Fleet Expansion
* Moody's Changes Outlook on Indonesia's 'Ba2' Rating to Positive
J A P A N
ALL NIPPON: Mulls Setting Up Low Cost Carrier at Kansai Airport
JLOC 36: S&P Puts Ratings on Notes on CreditWatch Negative
TOYO PROPERTY: S&P Downgrades Corporate Credit Rating to 'BB+'
M A L A Y S I A
ARK RESOURCES: Appoints Rahman as Chairman
FOUNTAIN VIEW: Bentayan Transfers Leasehold to Fountain View Land
LCL CORP: Appoints Messrs UHY to Conduct Special Review
N E W Z E A L A N D
AORANGI SECURITIES: Government Appoints Statutory Manager
DYNASTY GROUP: Creditors' Meeting Moved Next Week
INVESTMENT RESEARCH: Fails to File Full Year Accounts
SOUTH CANTERBURY: Issues Amended Prospectus to Raise New Funds
P H I L I P P I N E S
PHILIPPINE AIRLINES: Union to Appeal DoLE's Retrenchment Order
S I N G A P O R E
GLOBAL A&T: Moody's Gives Stable Outlook; Keeps 'B1' Rating
X X X X X X X X
* Bingham Expands Investment Management Practice to Hong Kong
* Upcoming Meetings, Conferences and Seminars
- - - - -
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A U S T R A L I A
=================
SIGMA PHARMACEUTICALS: Macquarie Downgrades Rating to Underperform
------------------------------------------------------------------
Michael Bennet at The Australian reports that a Macquarie analyst
said Aspen Pharmacare may walk away from its $700 million takeover
offer for Sigma Pharmaceuticals.
The Australian relates that Analyst Steve Wheen on Tuesday
downgraded Sigma to underperform from neutral following reports
that its generics business has performed poorly and EBIT was now
expected to be AU$6.4 million below budget.
"Whether this latest downgrade will require a further writedown of
goodwill to the Arrow business (currently AU$444 million of
goodwill) remains to be seen," the report quoted Mr. Wheen as
saying.
"Increasingly we are of the view that Aspen may walk from this
transaction, putting Sigma back in the hands of its banks,"
Mr. Wheen told The Australian.
As reported in the Troubled Company Reporter-Asia Pacific on
May 24, 2010, Aspen Pharmacare Holdings Ltd. offered to buy Sigma
Pharmaceuticals for about AU$1.49 billion in cash and assume debt
to expand in Australia. Aspen said it will offer AU$0.60 for each
of Sigma's outstanding 1.18 billion shares and assume net debt of
AU$785 million.
About Sigma Pharmaceuticals
Based in Australia, Sigma Pharmaceuticals Limited (ASX:SIP) --
http://www.sigmaco.com.au/-- is engaged in the manufacture,
marketing and wholesale distribution of pharmaceutical products
through the pharmacy and grocery channels and the provision of
services to retail pharmacists. Its Pharmaceuticals segment
includes the manufacture or contract manufacture for Australian
and overseas customers. The Company's Healthcare segment
represents its traditional pharmacy wholesale business. Its
subsidiaries include Chemist Club Pty Limited, Sigma Company
Limited, Amcal Pty. Limited, Commonwealth Drug Company Pty. Ltd.,
Fawns & McAllan Proprietary Limited, Guardian Pharmacies Australia
Pty. Ltd and Sigma Finance Pty. Ltd. On October 2, 2009, the
Company acquired some parts of the Australian business operations
of Bristol Myers Squibb Australia (BMSA) and associated assets
(BMS Australian Business). The BMS Australian Business consists
of the pharmaceutical and technical operations division, which
operates out of BMS Australia's Noble Park facility.
* * *
The TCR-AP reported on April 23, 2010, that Sigma Pharmaceuticals
may face a damages claim of more than $200 million from
shareholders over its annual loss and alleged breach of continuous
disclosure obligations. Tom Tarasewicz, the vice-president of the
US litigation funder Comprehensive Legal Funding, said his firm
had been approached by Australian institutional shareholders in
Sigma, who were concerned about the company's long trading halt
and the end-of-year adjustments it was about to make to its 2010
accounts. Mr. Tarasewicz said law firm Slater & Gordon was still
several weeks from finalizing its investigation into Sigma's
financial woes, which included nearly $500 million in goodwill
write-downs, but said that at this stage the shareholder case
looked strong. A damages bill above $200 million would be nearly
half of Sigma's market capitalization of $572 million or almost
three times its 2009 full-year profit, according to the Sydney
Morning Herald.
Sigma reported a net loss of AU$389 million for the year ended
Jan. 31, 2010. The Wall Street Journal reported Sigma said
competition in the generic drug sector was keener than it had
anticipated and slashed the book value of key assets. The Journal
said Sigma also revealed that because the company had breached
debt covenants, creditors were insisting on assets sales to pay
them AU$90 million by Nov. 30, 2010.
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C H I N A
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AGRICULTURAL BANK: Kuwait Fund to Invest US$800 Million in IPO
--------------------------------------------------------------
The Kuwait Investment Authority, the country's sovereign wealth
fund, will invest US$800 million in Agricultural Bank of China
Ltd.'s initial public offering, Fiona MacDonald at Bloomberg News
reports citing a person familiar with the transaction.
The person, who declined to be identified because the talks are
private, told Bloomberg News that the fund had offered as much as
US$1 billion, a figure that was reduced to US$800 million.
The Troubled Company Reporter-Asia Pacific reported on June 22,
2010, that the Qatar Investment Authority agreed to invest
US$2.8 billion in Agricultural Bank of China's initial public
offering. The US$58 billion fund signed an agreement with
Agricultural Bank on June 17, Bloomberg News reported on June 21,
2010, citing two people with knowledge of the matter. The people
said the bank has allocated more than US$5 billion for corporate
investors such as QIA in the Hong Kong part of its IPO, Bloomberg
News added.
As reported in the TCR-AP on Dec. 16, 2008, Agricultural Bank of
China plans to seek a dual listing at both Shanghai Stock Exchange
and Hong Kong Exchanges this year. The bank is expected to raise
US$25 billion to US$35 billion from the IPO, with 60% of shares
sold at the Shanghai bourse and 40% at the Hong Kong bourse. But
the proportion could also be changed, depending on market
situation and the scale of the IPO. Agricultural Bank was the
last of China's large banks to be recapitalized by the state in
preparation for restructuring and an eventual IPO and it is
generally viewed in China as the worst-performing and worst-
managed of all banks, according to The Financial Times.
About ABC
Agricultural Bank of China -- http://www.abchina.com/-- one of
China's largest state-owned commercial banks, specializes in
financing and providing services to agricultural, industrial,
commercial, and transportation enterprises in rural areas. The
bank also offers personal banking, credit cards, and foreign
exchange services. Founded in 1951, ABC operates approximately
31,000 branches and banking offices, as well as more than 30
provincial-level offices, serving every county in China. Overseas
it operates branches in Hong Kong and Singapore, and
representative offices in London, New York, and Tokyo.
* * *
Agricultural Bank of China continues to carry Moody's 'E+' bank
financial strength rating and Fitch's "E" Individual Rating.
CHINA CONSTRUCTION: Central Huijin Backs Planned Rights Issue
-------------------------------------------------------------
China Construction Bank Corp. said Monday that its parent Central
Huijin Investment Co. will fully participate in the rights issue
plan for RMB42.8 billion.
CCB said in a statement filed with the Shanghai Stock Exchange
that Central Huijin, which holds a 57.09% stake in the lender,
will subscribe new shares in cash.
The Troubled Company Reporter-Asia Pacific reported on May 25,
2010, that China Construction Bank Chairman Guo Shuqing said the
bank will postpone its equity-based fund-raising till the end of
this year or early 2011. China Construction Bank plans to raise
up to CNY75 billion (US$11 billion) from a rights issue, Finance
Asia reported on May 3, 2010. CCB will offer 0.7 rights share for
every 10 existing A- and H-shares, Finance Asia said. The price
will be no more than CNY4.50 per rights share.
Beijing-based China Construction Bank Corporation (HKG:0939) --
http://www.ccb.com/-- operates in three business segments:
corporate banking, personal banking and treasury business. Its
corporate banking products and services include corporate loans,
trade financing, deposit taking activities, agency services,
consulting and advisory services, cash management services,
remittance and settlement services, custody services, and
guarantee services. The Company's personal banking products and
services comprise personal loans, deposit taking activities, card
business, personal wealth management services, remittance services
and securities agency services. The Bank operates principally in
Mainland China with branches located in 31 provinces, autonomous
regions and municipalities directly under the central government,
and two subsidiaries located in the Bohai Rim. It also has bank
branch operations in Hong Kong, Singapore, Frankfurt,
Johannesburg, Tokyo and Seoul, and subsidiaries operating in
Hong Kong.
* * *
China Construction Bank continues to carry Moody's Investors
Service's 'D+' bank financial strength rating and Fitch individual
rating of 'D.'
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H O N G K O N G
================
CITIC BANK: Moody's Affirms 'D+' Bank Financial Strength Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a Baa3 rating to the
foreign currency subordinated notes to be issued under the Medium
Term Note program by CITIC Bank International Limited. The rating
outlook is stable.
The rating is subject to the receipt of final documentation, the
terms and conditions of which should not have changed in any
material way from the draft documents Moody's has reviewed.
"The notes' Baa3 rating reflects CBIL's solid capital base, the
structure of the notes, and possible parental support -- if
required -- from China CITIC Bank (Baa2 Stable; D/Ba2 Stable),"
says Leo Wah, a Moody's Vice President/Senior Analyst.
"The notes would represent direct, unsecured, and subordinated
obligations of CBIL, and the Baa3 rating is one notch below its
senior obligations rating of Baa2," says Wah.
The notes will carry a fixed-rate coupon for 10 years to maturity
in 2020. They will qualify as Tier II Supplementary Capital under
the Banking Ordinance of Hong Kong. This issuance will help CBIL
to maintain a solid capital adequacy ratio.
Moody's last rating action on CBIL was on March 1, 2010 when the
outlook on CBIL's debt and deposit ratings were changed to stable
from negative.
Headquartered in Hong Kong, CBIL is a commercial bank with total
assets of HK$120.1 billion (approximately US$15.4 billion) as of
end-December 2009.
The bank's ratings are (all have a stable outlook):
CBIL (all with stable outlook):
* Bank Financial Strength Rating D+
* LT Bank Deposits (Foreign) Baa2
* LT Bank Deposits (Domestic) Baa2
* LT Deposit Note/CD Program (Foreign) Baa2
* LT Deposit Note/CD Program (Domestic) Baa2
* Senior Unsecured Debt MTN (Foreign) Baa2
* Subordinated Debt (Foreign) Baa3
* Subordinated Debt MTN (Foreign) Baa3
* Junior Subordinated Debt MTN (Foreign) Ba1
* BACKED Junior Subordinated Debt (Foreign) Ba1 (issued through
CKWH-UT2 Limited)
* ST Bank Deposits (Foreign) P-2
* ST Bank Deposits (Domestic) P-2
* ST Deposit Note/CD Program (Foreign) P-2
* ST Deposit Note/CD Program (Domestic) P-2
Moody's Investors Service is a publisher of rating opinions and
research. It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.
This release is not a solicitation or a recommendation to buy,
hold, or sell securities.
GREAT TIME: Tse Ka Yee Appointed as Liquidator
----------------------------------------------
Tse Ka Yee on June 9, 2010, was appointed as liquidator of Great
Time Electronics Co., Limited.
The liquidator may be reached at:
Tse Ka Yee
Room 204, 2/F, Malaysia Building
50 Gloucester Road
Wanchai, Hong Kong
HOUSE OF EXCELLENCE: Members' Final Meeting Set for July 19
-----------------------------------------------------------
Members of House of Excellence Limited will hold their final
meeting on July 19, 2010, at 4:00 p.m., at Shop 8 and 1/F., 53-59
Kimberley Road, Tsimshatsui, in Kowloon.
At the meeting, Puen Wing Fai, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
LINGUAPHONE CHINA: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------------
At an extraordinary general meeting held on June 4, 2010, members
of Linguaphone China Education Holdings Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Mr. Ip Pui Lam
19/F, Nan Dao Commercial Building
359-361 Queen's Road
Central, Sheung Wan
Hong Kong
M SINO: Ng and Bots Appointed as Liquidators
--------------------------------------------
Ng Kit Ying Zelinda and Michel Henricus Bots on June 8, 2010, were
appointed as liquidators of M Sino Trading Limited.
The liquidators may be reached at:
Ng Kit Ying Zelinda
Michel Henricus Bots
31/F., The Center
99 Queen's Road
Central, Hong Kong
MARVEL LIGHT: Creditors' Proofs of Debt Due July 20
---------------------------------------------------
Creditors of Marvel Light Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by July 20,
2010, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on June 8, 2010.
The company's liquidators are:
Seng Sze Ka Mee Natalia
Cheng Pik Yuk
Three Pacific Place, Level 28
1 Queen's Road East
Hong Kong
MUTUAL FAITH: Pang Wai Kui Steps Down as Liquidator
---------------------------------------------------
Pang Wai Kui stepped down as liquidator of Mutual Faith (HK)
Limited on June 8, 2010.
NLV LIMITED: Creditors' Proofs of Debt Due July 20
--------------------------------------------------
Creditors of NLV Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by July 20,
2010, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on June 7, 2010.
The company's liquidators are:
Lai Kar Yan, Derek
Darach Eoghan Haughey
35th Floor, One Pacific Place
88 Queensway, Hong Kong
NORITAKE HK: Members' Final General Meeting Set for July 23
-----------------------------------------------------------
Members of Noritake Hong Kong Limited will hold their final
general meeting on July 23, 2010, at 11:30 a.m., at Level 28,
Three Pacific Place, 1 Queen's Road East, in Hong Kong.
At the meeting, Susan Y H Lo, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
OMEGA CAPITAL: Moody's Withdraws 'C' Rating on Series 24 Notes
--------------------------------------------------------------
Moody's Investors Service announced it has withdrawn the rating on
Series 24 notes issued by Omega Capital Europe plc, a
collateralized debt obligation transaction referencing a managed
portfolio of corporate entities.
Issuer: Omega Capital Europe plc
-- US$217,500,000 Series 24 Secured Floating Rate Notes due
2012, Withdrawn; previously on Oct 24, 2008 Downgraded to C
Moody's explained that the withdrawal follows the reduction of the
principal amount of the notes to zero due to losses in the
reference portfolio. The notes have subsequently been cancelled.
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I N D I A
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CABCON INDIA: CRISIL Upgrades Rating on INR15MM Term Loan to 'BB-'
------------------------------------------------------------------
CRISIL upgrades its ratings on Cabcon India Pvt Ltd's bank
facilities to 'BB-/Stable/P4+' from 'B+/Stable/P4'. Cabcon is a
part of the Fomra group.
Facilities Ratings
---------- -------
INR75.0 Million Cash Credit Limit BB-/Stable (Upgraded from
B+/Stable)
INR15.0 Million Term Loan* BB-/Stable (Upgraded from
B+/Stable)
INR95.0 Million Bill Discounting P4+ (Upgraded from P4)
INR75.0 Million Bank Guarantee P4+ (Upgraded from P4)
INR20.0 Million Letter of Credit P4+ (Upgraded from P4)
*Includes a proposed limit of INR10.0 million.
The rating upgrade reflects improvement in financial risk profile,
driven by more-than-expected improvement in gearing following
equity infusion of about INR9.25crore in 2009-10 in the Fomra
group.
The rating continues to reflect Fomra group's below-average
financial risk profile, marked by a small net worth, weak debt
protection metrics, and average gearing, its large working capital
requirements, and susceptibility to intense competition in the
power cable manufacturing segment. These rating weaknesses are
partially offset by the Fomra group's integrated operations,
promoters' strong track record in the power cable segment, and
healthy demand prospects in the power sector.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Cabcon India Pvt. Ltd., Radhika
Transmission Pvt Ltd and Shreyash Aluminium & Alloys Pvt Ltd.
These entities are collectively referred to as the Fomra group.
All the above-mentioned companies have a common management, and
inter-company transactions, which are part of the integrated value
chain of the group's business. CRISIL has also consolidated the
business and financial risk profile of Kishore & Co. with Fomra
group because one of the directors of SAAPL is the proprietor of
Kishore & Company and due to existence of operational linkages
(such as inter-company sale and purchase) between Kishore &
Company and SAAPL.
Outlook: Stable
CRISIL believes that the Fomra group will continue to benefit from
its fully integrated operations - from aluminium ingot procurement
to manufacture and supply of conductors to reputed customers, and
its promoters' experience in the power cable industry, over the
medium term. The group's financial risk profile is expected to
remain below-average because of its low debt coverage indicators
and large working capital requirement. The outlook may be revised
to 'Positive' in case the group generates higher-than-expected
operating income growth and profitability. Conversely, the
outlook may be revised to 'Negative' if the group undertakes a
large, debt-funded capital expenditure programme, leading to
significant decline in operating income and profitability.
About the Group
The Fomra group started manufacturing power cables in 1991, with
the establishment of Cabcon (the flagship company of the group) by
Mr. S B Fomra. Cabcon manufactures Aluminium conductor steel
reinforced (ACSR), All Aluminium Alloy conductor (AAAC), All
Aluminium conductors (AAC) and Aluminium wires which are used in
overhead transmission and distribution of electricity. The
manufacturing unit of Cabcon is located near Kolkata and has
capacity to produce 15,000 tonnes per annum (tpa) of conductors.
RTPL is in the same line of business as Cabcon. SAAPL manufactures
Aluminium wire rods that are used as raw material for
manufacturing of conductors. Mr. Shree Chand Daga, is one of the
director of M/s. Shreyash Aluminium & Alloys Pvt. Ltd., Mr. Shree
Chand Daga also owns Kishore & Company, which trades in Aluminium
Ingots. Kishore & Company is the consignment agent of Hindalco
Industries Limited in the Eastern Region.
The Fomra group (consolidated) reported a profit after tax (PAT)
of INR8.9 million on net sales of INR2277 million for 2008-09
(refers to financial year, April 1 to March 31), against a PAT of
INR6.3 million on net sales of INR670 million for 2007-08.
COGENT ENGINEERS: CRISIL Puts 'BB-' Rating on INR34.3M Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to Cogent
Engineers Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR34.3 Million Cash Credit BB-/Stable (Assigned)
INR3.7 Million Overdraft Facility BB-/Stable (Assigned)
INR30.0 Million Bank Guarantee P4+ (Assigned)
INR5.0 Million Bill Discounting P4+ (Assigned)
The ratings reflect Cogent's constrained financial risk profile,
owing to stretched liquidity and low net worth, and exposure to
risks related to intense competition in the boiler segment. These
weaknesses are partially offset by Cogent's strong track record in
the water tube boilers market, and the benefits that the company
derives from its promoters' experience.
Outlook: Stable
CRISIL believes that Cogent will maintain its business risk
profile on the back of its strong track record and experienced
management team. The outlook may be revised to 'Positive' if
Cogent's liquidity improves significantly on account of
improvement in bargaining power with customers and quicker receipt
of retention money. Conversely, the outlook may be revised to
'Negative' in case of any further deterioration in Cogent's
liquidity, or any decline in its scale of operations or
profitability.
About Cogent
Cogent, set up in 1984, manufactures and erects water tube
boilers. The company also undertakes projects for upgrading
boilers, boiler re-tubing, steam piping, and spent wash firing. It
also sells boiler spare parts. The company has in-house engineers
to design the boilers. Based on customer requirements, Cogent
designs boilers with pressure, temperature and tonnage
specification.
Cogent reported a profit after tax (PAT) of INR0.7 million on net
sales of INR83.5 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR3.1 million on net sales
of INR93.4 million for 2007-08.
GAUTAM TECHNOCAST: CRISIL Places 'BB' Rating on INR5.6MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to Gautam
Technocast's bank facilities.
Facilities Ratings
---------- -------
INR70.0 Million Cash Credit Facility BB/Stable (Assigned)
INR5.6 Million Term Loan BB/Stable (Assigned)
INR20.0 Million Letter of Credit P4+ (Assigned)
The ratings reflect Gautam Technocast's exposure to risks related
to customer concentration in revenue profile, average financial
risk profile marked by small net worth, moderate gearing and weak
debt protection metrics and susceptibility to intense competition
in the iron castings industry. These rating weaknesses are
partially offset by Gautam Technocast's promoters' experience in
the iron castings industry.
Outlook: Stable
CRISIL believes that Gautam Technocast will continue to benefit
from its healthy relationships with its customers and promoters'
industry experience over the medium term. The outlook may be
revised to 'Positive' in case the firm generates healthy revenue
growth which increasing its revenue diversity and reports better
than expected profit margins. Conversely, the outlook may be
revised to 'Negative' if the firm undertakes larger-than-expected
debt-funded capital expenditure programme, or its debt protection
metrics deteriorate further because of decline in margins.
About Gautam Technocast
Gautam Technocast was incorporated in 1995 by Mr. Praful Dhami,
Mr. Dharmesh Dhami and Mr. Mishal Javia as an equal partnership
firm. The firm manufactures grey iron casting (CI) and ductile
iron casting (SG) which is used in agricultural equipments, power
sector, mining sector, and in pumps and valves. The firm has cast
manufacturing capacity of 700 tonnes per month at its plant in
Rajkot (Gujarat), and is presently operating at about 70 per cent
utilization rate.
Gautam Technocast reported a book profit of INR5.7 million on net
sales of INR253 million for 2008-09 (refers to financial year,
April 1 to March 31), against a book profit of INR7.1 million on
net sales of INR229 million for 2007-08.
KEJRIWAL BEE: CRISIL Assigns 'BB' Rating on INR28.4MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to Kejriwal Bee Care
India Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR131.60 Million Cash Credit Limit * BB/Stable (Assigned)
INR28.40 Million Term Loan BB/Stable (Assigned)
* Includes a sub limit of INR40.0 million for EPC.
The rating reflects Kejriwal's average financial risk profile,
marked by a small net worth and weak debt protection metrics, and
exposure to risks related to customer concentration in revenue
profile, and large working capital requirements. These rating
weaknesses are partially offset by the benefits that Kejriwal
derives from its promoters' experience in the honey business,
improving operating efficiency, and healthy demand prospects for
the honey industry.
Outlook: Stable
CRISIL believes that Kejriwal will continue to benefit from its
promoters' experience in the honey processing and marketing
business and improving operating efficiency over the medium term.
The rating outlook may be revised to 'Positive' if Kejriwal
significantly increases its operating income while sustaining its
profitability, or enhances its client diversity significantly.
Conversely, the outlook may be revised to 'Negative' in case of
less-than-expected increase in cash accruals, or if the company
undertakes large debt-funded capital expenditure plans, leading to
deterioration in its overall financial risk profile.
About Kejriwal Bee
In 2003, Kejriwal, a subsidiary of Kejriwal Enterprises (with 70
per cent stake) was set up by Mr. N M Kejriwal to undertake
processing and selling of honey. Kejriwal commenced commercial
production in March 2005, and the company received a 100 per cent
export-oriented unit (EOU) status. Eventually, the company
started selling honey in the domestic market and exited from the
EOU status in November 2008.
Kejriwal processes and sells honey both in the export and domestic
market. The company has its honey processing facility in Banur
(Punjab). Kejriwal's facility has capacity of processing 5000
tonnes of honey per annum. Kejriwal procures raw honey through
its network traders and aggregators situated across the country.
Kejriwal reported a profit after tax (PAT) of INR4.6 million on
net sales of INR351 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR2.2 million on net sales
of INR225 million for 2007-08.
LANCO HILLS: CRISIL Assigns 'BB' Rating on INR6.75BB LT Loans
-------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the bank facilities
of Lanco Hills Technology Park Pvt Ltd.
Facilities Ratings
---------- -------
INR6750 Million Long-Term Loans BB/Stable (Assigned)
INR4965.4 Million (USD 110 Million) BB/Stable (Assigned)
Foreign Currency Term Loans
The rating reflects Lanco Hill's exposure to risks related to
completion of the integrated township project at Manikonda village
in Hyderabad, the sluggish demand outlook for the real estate
industry over the short term, and possible liquidity pressures
over the medium term because of large upcoming repayment
obligations. These weaknesses are partially offset by the
extensive experience of the Lanco group in project execution in
the infrastructure space, and the advanced stage of completion of
the residential segment of Lanco Hill's township project.
Outlook: Stable
CRISIL believes Lanco Hill's credit risk profile will be
constrained by the sluggish demand outlook for the real estate
sector in Hyderabad. Steady sales in the proposed low-cost housing
project and in the soon-to-be-completed residential project will
be critical for ensuring adequate liquidity for Lanco Hill. Also,
CRISIL expects support from Lanco Hill's parent, Lanco Infratech
Ltd (Lanco Infratech, rated 'A-/Stable/P2+' by CRISIL) to be made
available to tide over any short-term exigencies. Higher-than-
anticipated sales for the company's residential apartments leading
to healthy cash generation could result in the rating outlook
being revised to 'Positive'. Conversely, lower-than-expected
sales of these apartments, and a greater reliance on external
borrowings than expected, would result in a revision of the
outlook to 'Negative'.
About Lanco Hills
Lanco Hill is a special-purpose vehicle (SPV) established by the
Lanco group to develop an integrated township, Lanco Hills, on 100
acres at Manikonda village, near Hyderabad Information Technology
Engineering Consultancy (HITEC) City, Hyderabad. The total
project cost in its present scope, is estimated at about INR34
billion. Presently, the scope of the township project covers
construction of high-end residential complexes (with an area of
4.2 million square feet [sq ft]), low-cost housing complexes (6.2
million sq ft), and commercial space (8 million sq ft). The
commercial space will include of 5.5 million sq ft as a special
economic zone. Lanco Infratech holds 74 per cent stake in Lanco
Hill's equity, in addition to INR2 billion of preference capital.
Bangalore-based real estate construction player, the Mantri group,
holds the balance 26 per cent equity.
Lanco Hill reported a net loss of INR387 million on net revenues
of INR877 million for 2009-10 (refers to the financial year,
April 1 to March 31), against a net profit of INR38 million on net
revenues of INR1.57 billion for the previous year.
LINGARAJ PIPES: CRISIL Rates INR50 Million Cash Credit at 'BB'
--------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to Lingaraj Pipes
Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR50.0 Million Cash Credit* BB/Stable (Assigned)
INR1.0 Million Bank Guarantee P4+ (Assigned)
*The company has availed FCNR limits as sublimit of the
CC limit to the extent of INR25 million
The ratings reflect LPPL's small scale of operations with
susceptibility to intense competition in the polyvinylchloride
(PVC) pipes industry, geographical and customer concentration in
revenue profile with high variability in revenues, and limited
financial flexibility due to small net worth. These rating
weaknesses are partially offset by LPPL's healthy gearing and
moderate debt protection metrics, and experience of promoters in
the PVC pipe manufacturing business.
Outlook: Stable
CRISIL believes that LPPL's scale of operations will remain small
and its financial risk profile, moderate, over the medium term.
The outlook may be revised to 'Positive' if LPPL increases its
scale of operations significantly and diversifies its customer
base. Conversely, the outlook may be revised to 'Negative' if
LPPL's cash accruals decline, most likely because of continued
pressure on revenues and profitability.
About Lingaraj Pipes
Incorporated in April 1998 by Mr. Rohit Saraf and Mr. Sajjan
Sureka, LPPL commenced commercial production in January 2000. The
company manufactures PVC pipes and fittings which are used for
transporting fluids, and in irrigation, water supply and
sanitation systems. The company's manufacturing unit in
Bhubaneswar (Orissa) has capacity of 3,172 tonnes per annum (tpa).
The company produces pipes in the range of 15 millimetre (mm) to
315 mm outer diameter and 0.5 inches to 12 inches inner diameter.
The company mainly supplies to the various departments of
Government of Orissa (75 per cent sales), builders (10 per cent),
corporate (10 per cent) and retailers (5 per cent).
LPPL is expected to report a profit after tax (PAT) of INR1.1
million on net sales of INR79.4 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of
INR5.7 million on net sales of INR169.2 million for 2008-09.
MEERA COTTON: CRISIL Assigns 'BB' Rating on INR60MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' to the bank facilities of
Meera Cotton and Synthetic Mills Pvt Ltd.
Facilities Ratings
---------- -------
INR90.0 Million Cash Credit BB/Stable (Assigned)
INR60.0 Million Term Loan BB/Stable (Assigned)
INR24.2 Million Proposed LT BB/Stable (Assigned)
Bank Loan Facilities
INR15.0 Million Packing Credit P4+ (Assigned)
INR4.0 Million Bank Guarantee P4+ (Assigned)
The ratings reflect Meera's modest financial risk profile, and its
limited pricing power because of the commodity-like market for its
products. These rating weaknesses are partially offset by Meera's
promoters' experience and established business relationships in
the textile industry.
Outlook: Stable
CRISIL believes that Meera will continue to benefit from the
established relationships with its clients and agents, over the
medium term. The outlook may be revised to 'Positive' if the
company increases its revenues and cash accruals significantly,
while maintaining its debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if Meera's debt protection
metrics deteriorate, most likely because of large debt-funded
capital expenditure or sharp decline in margins and cash accruals.
About Meera Cotton
Incorporated in 1994 by Mr. Jayesh Shah, Meera manufactures
polyster texturised yarn, knitted yarn, and twisted yarn. The
company outsources its weaving operations to small-scale weavers
in Bhiwandi (Maharashtra). The company has 30 knitting machines,
eight texturising machines, and four twisting machines at its
plant at Silvassa (Dadra and Nagar Haveli). Its registered office
is in Mumbai.
For 2009-10 (refers to financial year, April 1 to March 31), Meera
reported a provisional profit after tax (PAT) of INR17 million on
net sales of INR880 million, against a PAT of INR3.8 million on
net sales of INR512 million for 2008?09.
MILI STEELS: Low Net Worth Prompts CRISIL's 'BB-' Rating
--------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Mili Steels Pvt Ltd.
Facilities Ratings
---------- -------
INR140.0 Million Cash Credit BB-/Stable (Assigned)
INR50.0 Million Letter of Credit P4+ (Assigned)
The ratings reflect Mili's weak financial risk profile marked by
low net worth and high gearing, and exposure to risks related to
intense competition in the stainless steel kitchen utensils
industry. These rating weaknesses are partially offset by the
benefits that Mili derives from its established market position
supported by experienced management and brand strength.
Outlook: Stable
CRISIL believes that Mili will sustain its moderate revenue growth
driven by its established marketing network over the medium term.
The outlook may be revised to 'Positive' if the company receives
substantial equity infusion or reports sustained improvement in
its working capital management. Conversely, the outlook may be
revised to 'Negative' if Mili's debt protection measures are
adversely affected because of debt-funded capital expenditure, or
if the company's profitability declines because of volatility in
market prices of raw materials.
About Mili Steels
Incorporated in 1995 by Mr. T R Gosar, Mili commenced commercial
operations in 1999. It manufactures stainless steel kitchen
utensils of various sizes and shapes at its plant at Atgaon
Village (Maharashtra); it sells it products in the northern and
western regions of India under the Mili brand name. The company's
manufacturing plant has a capacity of 1100 tonnes per month. Over
50 per cent of the company's sales take place through merchant
exporters, who export Mili's products to various countries in
Africa.
Mili reported a profit after tax (PAT) of INR5.8 million on net
sales of INR603.8 million for 2008-09 (refers to financial year,
April 1 to March 31) against a PAT of INR5.8 million on net sales
of INR452.9 million for 2007-08.
P.R. NAYAK: CRISIL Assigns 'BB' Rating on INR7.40MM LT Loan
-----------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to P. R. Nayak
Associates bank facilities.
Facilities Ratings
---------- -------
INR7.40 Million Long-Term Loan BB/Stable (Assigned)
INR20.00 Million Overdraft Facility BB/Stable (Assigned)
INR62.50 Million Bank Guarantee P4+ (Assigned)
The ratings reflect PRN's exposure to risks related to
geographical and segmental concentration in revenue profile,
tender-based nature of business, and intense competition in the
construction industry. These rating weaknesses are partially
offset by PRN's above-average financial risk profile, marked by
moderate gearing and debt protection metrics, and the benefits
that the firm derives from its promoters' experience in the civil
construction industry.
Outlook: Stable
CRISIL believes that PRN will maintain its credit risk profile
over the medium term, backed by its moderate order book and
healthy track record. The outlook may be revised to 'Positive' if
PRN diversifies its revenue profile while maintaining its
operating margin. Conversely, the outlook may be revised to
'Negative' if the firm's profitability declines, or if it
undertakes large, debt-funded capex programme.
About P. R. Nayak
Incorporated in 1995 as a partnership firm by Mr.Prakash Nayak, is
in the civil construction business, primarily in Karnataka. The
firm undertakes government contracts, and mainly constructs roads,
bridges and canals. The firm is a Class A contractor for Public
Works Department.
PRN reported (provisional) a profit after tax (PAT) of INR25
million on net sales of INR447 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR16
million on net sales of INR445 million for 2008-09.
RAIN CII: S&P Changes Outlook to Positive; Keeps 'B' Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
rating outlook on India-based calcined petroleum coke producer
Rain CII Carbon (India) Ltd. to positive from negative and
affirmed its 'B' long-term corporate credit rating on the company.
At the same time, S&P raised the issue rating on RCCIL's senior
secured bank facility to 'BB-' with a recovery rating of '1' from
'B' with a recovery rating of '3'. Concurrently, S&P also raised
the issue rating on the senior subordinated notes issued by Rain
CII Carbon LLC to 'B-' with a recovery rating of '5' from 'CCC+'
with a recovery rating of '6'. These notes are guaranteed by
RCCIL.
The positive outlook on the rating reflects the stabilization in
the cyclical demand for CPC, which correlates to the volume of
aluminum produced. S&P expects the improved outlook for aluminum
and the better production volume for CPC to enable RCCIL to
maintain its operating performance. The demand for aluminum has
recovered because of the improving economic conditions and outlook
after the severe downturn in the global economy in the first half
of 2009. S&P expects RCCIL's capacity utilization as well as the
demand for CPC to be stable. RCCIL has been able to maintain
credit metrics commensurate with the rating because of its steady
operating performance.
"S&P revised the outlook to positive to reflect its expectation
that the improving outlook for end markets will boost RCCIL's
operating and financial metrics. S&P has also factored in the
company's resilient performance during the recent economic
downturn," said Standard & Poor's credit analyst Manuel Guerena.
In S&P's view, RCCIL's liquidity is adequate. The company had
cash and cash equivalents of US$64.4 million and short-term debt
of US$104.6 million as at March 31, 2010. RCCIL relies on its
cash flows to service its debt. It generated FFO of US$99.5
million in fiscal 2009. S&P expects RCCIL to generate FFO of
about US$100 million in fiscal 2010.
RCCIL has maintained sufficient cushion for financial covenants
governing its senior secured credit facility, and S&P expects the
company to continue complying with the covenant requirements with
adequate headroom.
SANGAM INTERNATIONAL: CRISIL Reaffirms 'P4+' Rating on Bank Debts
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of Sangam International
continues to reflect Sangam International's small net worth and
revenue profile with geographic and client concentration. These
weaknesses are partially offset by the firm's healthy
profitability, leading to strong debt protection metrics, the
experience of its promoters, and the firm's established presence
in the gold jewellery business.
Facilities Ratings
---------- -------
INR100.0 Million Packing Credit P4+ (Reaffirmed)
INR100.0 Million Proposed ST P4+ (Reaffirmed)
Bank Loan Facility
Sangam International is a partnership firm set up in 2005 by Mr.
Santok Chand Jain; the firm is part of the Sangam Group, which was
established in the 1940s. Sangam International is an entirely
export-oriented unit, and caters to reputed retail gold jewellery
stores in Singapore and Dubai. Besides Sangam International,
there are other firms in different segments of gold jewellery
business promoted by the Jain family. Sangam International's
factory is in Noida (Uttar Pradesh).
For 2008-09 (refers to financial year, April 1 to March 31),
Sangam International reported a profit after tax (PAT) of INR140
million on net sales of INR1847 million, against a PAT of INR72
million on net sales of INR930 million for 2007-08.
SWASTIK POWER: CRISIL Rates INR1049.5 Million Term Loan at 'B'
--------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to Swastik Power and
Mineral Resources Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR1049.5 Million Term Loan B/Stable (Assigned)
INR7.0 Million Cash Credit B/Stable (Assigned)
The rating reflects Swastik's exposure to risks related to the
stabilization of operations in the coal washery business and
implementation of its power project. These rating weaknesses are
partially offset by the benefits that Swastik derives from the
long-standing experience of its promoters' in the coal
transportation business.
Outlook: Stable
CRISIL believes that Swastik will continue to benefit from its
promoters' experience in the Coal industry. The outlook may be
revised to 'Positive' if Swastik achieves stabilization of
commercial production and capacity utilisation of its Coal washery
project as per expectations and generates better-than-expected
revenues and cash accruals. Conversely, the outlook may be
revised to 'Negative' if Swastik's debt servicing capability comes
under pressure on account of lower-than-expected accruals from its
coal washery unit, or any significant time or cost overruns in the
implementation of power project.
About Swastik Power
Swastik, incorporated in 2004, for setting up a coal washery and
coal-based thermal power plant in Korba (Chhattisgarh) is promoted
by Mr. Raj Kumar Agarwal, Mr. Nitesh Agarwal (son of Mr. Raj Kumar
Agarwal), Mr. Ashish Agarwal (nephew of Mr. Raj Kumar Agarwal),
and Mr. Sanjay Lal Khaitan (friend of Mr. Raj Kumar Agarwal).
Swastik has a coal washery with capacity of 0.9 million tonnes per
annum, and will be setting up a power plant of 25 megawatts. The
commercial production in the coal washery unit is expected to
start in April 2010 and the construction of the power project is
expected to start in April 2010.
TRINIITY COLOUR: CRISIL Puts 'BB-' Rating on INR74.3MM LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to Triniity
Colour India Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR74.30 Million Long-Term Loan BB-/Stable (Assigned)
INR10.00 Million Cash Credit BB-/Stable (Assigned)
INR4.50 Million Bank Guarantee P4+ (Assigned)
The ratings reflect TCIPL's geographically concentrated revenue
profile, exposure to intense competition and relatively small
scale of operations in the fabric dyeing and finishing segment.
These rating weaknesses are partially offset by the benefits that
TCIPL derives from its promoter's experience in the dyeing
business, and its moderate financial risk profile, marked by
moderate debt protection metrics.
Outlook: Stable
CRISIL believes that TCIPL will maintain its business risk profile
over the medium term, supported by the steady demand for its
products and its established customer base. The outlook may be
revised to 'Positive' in case of significant increase in TCIPL's
scale of operations and net worth. Conversely, the outlook may be
revised to 'Negative' if TCIPL's financial risk profile
deteriorates, most likely because of a sharp decline in operating
margin or large debt-funded capital expenditure.
About Triniity Colour
Set up in 1993 by Mr. C Ayyakkannu, TCIPL is in the business of
dyeing and finishing grey fabrics on job-work basis. The company
has a manufacturing capacity of 2074 tonnes per annum at its unit
in Perundurai, Tamil Nadu. The company commenced commercial
operations in August 2007.
TCIPL reported a profit after tax (PAT) of INR12 million on net
sales of INR101 million for 2008-09 (refers to financial year,
April 1 to March 31), against a net loss of INR21 million on net
sales of INR28 million for 2007-08.
VISITOR GARMENTS: CRISIL Reaffirms 'BB+' Ratings on Various Debts
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Visitor Garments
continue to reflect the high revenue concentration risks faced by
Visitor, its below-average financial risk profile, marked by low
networth and weak debt protection measures, lack of integrated
facilities resulting in low operating margin, and susceptibility
to volatility in cotton prices and foreign exchange rates. These
rating weaknesses are mitigated by the fact that Visitor is an
established player in the knitwear segment and is managed by
experienced promoters who enjoy good relationships and credentials
with the firm's sole customer.
Facilities Ratings
---------- -------
INR17.60 Million Long-Term Loan BB+/Stable (Reaffirmed)
INR2.00 Million Cash Credit Limits BB+/Stable (Reaffirmed)
INR48.00 Million Foreign Bill P4+ (Reaffirmed)
Purchase/Discounting
Outlook: Stable
CRISIL believes that Visitor will continue to report stable
revenues and margins over the medium term, driven by its
longstanding business relationship with its sole customer. The
outlook could be revised to 'Positive' if Visitor's increases the
diversification of its customer profile, and improves its
financial risk, most likely by equity infusion or more-than-
expected cash accruals. Conversely, the outlook could be revised
to 'Negative' if the firm contracts more-than-expected debt, or
its business performance is adversely affected, most likely
because of deterioration in family synergies or customer
relationship.
About Visitor Garments
Visitor is a Tirupur-based partnership firm, set up by Mr. M.
Muthukrishnan in 1988. It manufactures knitted nightwear for
women and exports its entire production to one customer, Primark
Stores, in the UK.
For 2009-10 (refers to financial year, April 1 to March 31), on a
provisional basis, Visitor reported a profit after tax (PAT) of
INR2.5 million on net sales of INR256 million, against a PAT of
INR3 million on net sales of INR264 million for the previous year.
XINDIA STEELS: CRISIL Assigns 'BB+' Rating on INR1.62BB LT Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to Xindia Steels
Ltd's bank facilities.
Facilities Ratings
---------- -------
INR1620.00 Million Long-Term Loan BB+/Stable (Assigned)
INR130.00 Million Bank Guarantee P4+ (Assigned)
The ratings reflect Xindia Steels' exposure to project-related
risks. These weaknesses are partially offset by the expectation
that the company will post stable revenues over the medium term
because of its long-term buy-back agreement with its Chinese joint
venture (JV) partners, and by the experience of its promoters in
executing ductile iron pipes and pellets manufacturing projects.
Outlook: Stable
CRISIL believes that Xindia Steels will commence commercial
operations of Phase I of its project on time (November 2010),
thereby supporting the company's cash flow requirements. More-
than-expected cash flows, as a result of higher profitability,
with better operating efficiency, may result in the outlook being
revised to 'Positive'. Conversely, the outlook may be revised to
'Negative' if there is any delay in commencement of operations,
resulting in time and cost overruns, or if there are unplanned
plant outages resulting in low capacity utilization, which, in
turn, would adversely impact Xindia Steels' cash flows, or if the
company undertakes any new debt-funded capital expenditure
programme.
About Xindia Steels
Located in Koppal (Karnataka), Xindia Steels was incorporated in
2007. Xindia Steels, whose facilities are being currently set up,
plans to manufacture pelletised iron ore in Phase I and ductile
iron pipes and pig iron in Phase II. It also has plans to set up
an integrated steel plant to manufacture special steel for the
automotive and ship-building industries, and a captive power plant
in Phase III of the project execution. Xindia Steels is a JV
between Xinxing Heavy Industries Company Ltd, China (35 per cent
shareholding), China National Metal Products Import Export
Company, China (20 per cent), the promoters of Sigma Minmet Ltd,
USA (5 per cent), and the Manasara (30 per cent) and Kelachandra
(10 per cent) groups, India. The promoters of Sigma Minmet Ltd,
and of the Manasara and Kelachandra groups have invested in their
personal capacity. Phase I of the project is expected to be
commissioned in November 2010.
ZYG PHARMA: CRISIL Puts 'BB+' Ratings on Various Bank Facilities
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of ZYG Pharma Pvt Ltd.
Facilities Ratings
---------- -------
INR50.00 Million Cash Credit BB+/Stable (Assigned)
INR115 Million Long-Term Loans BB+/Stable (Assigned)
INR15 Million Proposed Long-Term BB+/Stable (Assigned)
Bank Loan Facility
INR10 Million Letter of Credit P4+ (Assigned)
The ratings reflect the limited product and customer diversity in
ZYG's revenues, and its sub-par financial risk profile, because of
its small net worth, and sub-par gearing. These rating weaknesses
are partially offset by ZYG's longstanding relationship with its
major client, Fulford (India) Ltd, leading to stability in its
cash accruals.
Outlook: Stable
CRISIL believes that ZYG will continue to benefit over the medium
term from its established relationship with Fulford. The outlook
may be revised to 'Negative' if ZYG's cash accruals decline or the
company undertakes large debt-funded capital expenditure
programme. Conversely, the outlook may be revised to 'Positive'
if the company diversifies its product and customer profile, and
generates more-than-expected revenues and profitability.
About ZYG Pharma
ZYG, incorporated in 1987, contract manufactures topical
dermatological preparations; the company derives around 85 per
cent of its revenues from Fulford. ZYG's manufacturing facility
in Pithampur, Madhya Pradesh, has been certified for good
manufacturing practices by World Health Organization, and has
recently received the Australian Therapeutic Goods Administration
approval.
ZYG's profit after tax (PAT) and net sales are estimated at
INR10.0 million and INR214.1 million, respectively, for 2009-10
(refers to financial year, April 1 to March 31), against a PAT of
INR6.3 million on net sales of INR229.4 million for 2008-09.
=================
I N D O N E S I A
=================
BANK CENTRAL: Moody's Changes Ba3 Rating Outlook to Positive
------------------------------------------------------------
Moody's Investors Service has changed the outlooks for the Ba3
foreign currency long-term deposit ratings of 10 Indonesian banks
to positive from stable. All other ratings are unaffected.
The 10 banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.
The revisions in the outlooks are in line with the changes in
outlooks to positive from stable on June 18, 2010, for Indonesia's
Ba2 foreign currency and local currency government bond ratings;
Ba3 foreign currency deposit ceiling and Ba1 foreign currency bond
ceiling. See press release of June 18, 2010, for more details on
sovereign issues.
The last rating actions on all 10 banks were taken on
September 16, 2009, when multiple rating actions were taken to:
(1) conclude the review initiated on May 20, 2009, to examine the
systemic support assumption used in Moody's Joint-Default Analysis
application; and (2) to incorporate actions taken on Indonesia's
sovereign ratings on September 16, 2009.
All 10 banks are headquartered in Jakarta. Below are details of
their assets at March 2010:
* Bank Central Asia IDR282.84 trillion; Bank CIMB-Niaga
IDR114.68 trillion; Bank Danamon Indonesia IDR95.14 trillion;
Bank Internasional Indonesia IDR62.07 trillion; Bank Mandiri
IDR368.81 trillion; Bank Negara Indonesia IDR213.07 trillion;
Bank Permata IDR56.16 trillion; Bank Rakyat Indonesia IDR304.62
trillion; Bank Tabungan Negara IDR59.66 trillion; and Pan
Indonesia Bank IDR79.61 trillion.
BANK CIMB-NIAGA: Moody's Changes Ba3 Rating Outlook to Positive
---------------------------------------------------------------
Moody's Investors Service has changed the outlooks for the Ba3
foreign currency long-term deposit ratings of 10 Indonesian banks
to positive from stable. All other ratings are unaffected.
The 10 banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.
The revisions in the outlooks are in line with the changes in
outlooks to positive from stable on June 18, 2010, for Indonesia's
Ba2 foreign currency and local currency government bond ratings;
Ba3 foreign currency deposit ceiling and Ba1 foreign currency bond
ceiling. See press release of June 18, 2010, for more details on
sovereign issues.
The last rating actions on all 10 banks were taken on
September 16, 2009, when multiple rating actions were taken to:
(1) conclude the review initiated on May 20, 2009, to examine the
systemic support assumption used in Moody's Joint-Default Analysis
application; and (2) to incorporate actions taken on Indonesia's
sovereign ratings on September 16, 2009.
All 10 banks are headquartered in Jakarta. Below are details of
their assets at March 2010:
* Bank Central Asia IDR282.84 trillion; Bank CIMB-Niaga
IDR114.68 trillion; Bank Danamon Indonesia IDR95.14 trillion;
Bank Internasional Indonesia IDR62.07 trillion; Bank Mandiri
IDR368.81 trillion; Bank Negara Indonesia IDR213.07 trillion;
Bank Permata IDR56.16 trillion; Bank Rakyat Indonesia IDR304.62
trillion; Bank Tabungan Negara IDR59.66 trillion; and Pan
Indonesia Bank IDR79.61 trillion.
BANK DANAMON: Moody's Changes Ba3 Rating Outlook to Positive
------------------------------------------------------------
Moody's Investors Service has changed the outlooks for the Ba3
foreign currency long-term deposit ratings of 10 Indonesian banks
to positive from stable. All other ratings are unaffected.
The 10 banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.
The revisions in the outlooks are in line with the changes in
outlooks to positive from stable on June 18, 2010, for Indonesia's
Ba2 foreign currency and local currency government bond ratings;
Ba3 foreign currency deposit ceiling and Ba1 foreign currency bond
ceiling. See press release of June 18, 2010, for more details on
sovereign issues.
The last rating actions on all 10 banks were taken on
September 16, 2009, when multiple rating actions were taken to:
(1) conclude the review initiated on May 20, 2009, to examine the
systemic support assumption used in Moody's Joint-Default Analysis
application; and (2) to incorporate actions taken on Indonesia's
sovereign ratings on September 16, 2009.
All 10 banks are headquartered in Jakarta. Below are details of
their assets at March 2010:
* Bank Central Asia IDR282.84 trillion; Bank CIMB-Niaga
IDR114.68 trillion; Bank Danamon Indonesia IDR95.14 trillion;
Bank Internasional Indonesia IDR62.07 trillion; Bank Mandiri
IDR368.81 trillion; Bank Negara Indonesia IDR213.07 trillion;
Bank Permata IDR56.16 trillion; Bank Rakyat Indonesia IDR304.62
trillion; Bank Tabungan Negara IDR59.66 trillion; and Pan
Indonesia Bank IDR79.61 trillion.
BANK INTERNASIONAL: Moody's Changes Ba3 Rating Outlook to Positive
------------------------------------------------------------------
Moody's Investors Service has changed the outlooks for the Ba3
foreign currency long-term deposit ratings of 10 Indonesian banks
to positive from stable. All other ratings are unaffected.
The 10 banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.
The revisions in the outlooks are in line with the changes in
outlooks to positive from stable on June 18, 2010, for Indonesia's
Ba2 foreign currency and local currency government bond ratings;
Ba3 foreign currency deposit ceiling and Ba1 foreign currency bond
ceiling. See press release of June 18, 2010, for more details on
sovereign issues.
The last rating actions on all 10 banks were taken on
September 16, 2009, when multiple rating actions were taken to:
(1) conclude the review initiated on May 20, 2009, to examine the
systemic support assumption used in Moody's Joint-Default Analysis
application; and (2) to incorporate actions taken on Indonesia's
sovereign ratings on September 16, 2009.
All 10 banks are headquartered in Jakarta. Below are details of
their assets at March 2010:
* Bank Central Asia IDR282.84 trillion; Bank CIMB-Niaga
IDR114.68 trillion; Bank Danamon Indonesia IDR95.14 trillion;
Bank Internasional Indonesia IDR62.07 trillion; Bank Mandiri
IDR368.81 trillion; Bank Negara Indonesia IDR213.07 trillion;
Bank Permata IDR56.16 trillion; Bank Rakyat Indonesia IDR304.62
trillion; Bank Tabungan Negara IDR59.66 trillion; and Pan
Indonesia Bank IDR79.61 trillion.
GARUDA INDONESIA: Seeks US$2 Billion in Loans for Fleet Expansion
-----------------------------------------------------------------
PT Garuda Indonesia said Monday it was in talks with Export-Import
Bank of the United States for a loan worth up to US$2 billion to
be used to expand its fleet, The Jakarta Globe reports.
The Globe relates Garuda President Director Emirsyah Satar said
the company had submitted a loan proposal and was in talks with
the bank for a loan ranging from US$1.5 billion to US$2 billion,
with the money to be spent to lease 10 Boeing 777s and 10 Boeing
737-380s.
The report says Garuda is undergoing a major expansion of its
fleet, with plans to increase the number of planes to 103 by 2013,
up from 67 at the end of last year.
According to the Globe, Garuda has spent most of the year
restructuring debt. In January, it reached an agreement with
debt-holders to restructure international and local-currency debt,
including buying back US$138 million in debt, to clean up its
balance sheet ahead of its IPO.
As reported in the Troubled Company Reporter-Asia Pacific on
August 13, 2009, Garuda Indonesia expects to raise as much as
US$400 million from its much-awaited Initial Public Offering in
June this year. The expected launch, however, is based on a
positive outlook of the market condition, vis-a-vis investor
sentiment.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
MATAHARI PUTRA: Moody's Confirms 'B1' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has confirmed PT Matahari Putra Prima
Tbk's B1 corporate family and senior unsecured bond ratings. The
ratings outlook is stable.
This rating action concludes the rating review which commenced on
January 27, 2010, following the company's announcement of its plan
to sell off Matahari Department Store.
"The rating confirmation reflects Moody's expectation that
Matahari will improve its credit profile through debt reduction --
IDR 1.9 trillion has already been repaid so far in 2010 -- by
applying the proceeds from the disposal of its majority stake in
MDS and internally generated cash flow," says Ken Chan, a Moody's
Vice President and Senior Analyst.
Of this transaction's total value of IDR7.2 trillion, Matahari
will receive IDR5.3 trillion in cash, IDR1.0 trillion receivables
to be repaid in 7 years, and a 20% stake valued at IDR0.9 trillion
in Meadow Asia Company, an intermediate holding company of MDS.
Matahari plans to allocate IDR3.4 trillion for debt repayments,
IDR0.9 trillion for capital expenditures and working capital
needs, and IDR1.0 trillion for dividend payments.
"While the company's credit metrics are expected to improve --
Adjusted Debt/EBITDA falling to 3.5x from 5.3x a year ago, and
Adjusted Debt/Capitalization declining to 25% from 76%, the
disposal of the more profitable MDS, which accounted for over 75%
of the company's 2009 EBITDA, constrains its rating at B1," says
Chan.
"The loss of MDS revenue will be partially made up by the
company's expanding hypermarket business which has outperformed
the competition and has achieved year-to-date like-for-like growth
rates of mid-to-high single digits" says Chan.
The B1 rating continues to reflect the stable and growing
characteristics of the hypermarket business in Indonesia, the
company's operating track record in outperforming its peers, and
its projected sound credit profile. However, the rating also
incorporates the low profitability of the hypermarket business and
the keen level of competition in the industry.
The stable outlook reflects Moody's expectation that the company
will use the proceeds from the MDS sale to reduce debt, including
the US$200 million bonds, and that it will focus on the organic
growth of its hypermarket business.
Near-term upward rating pressure is limited. But, the ratings may
experience upward pressure over the medium term if the company 1)
demonstrates that it can sustain its competitive position in the
hypermarket; 2) can expand through organic growth instead of debt-
funded acquisitions; and 3) improves its operating efficiency and
profit margins as planned.
Moody's would consider such improvements as being reflected in
improved credit metrics of Adjusted Debt/EBITDA below 2.5-3.0x and
Adjusted EBITDA/Interest above 4.0-4.5x on a sustained basis.
Downward rating pressure may arise if Matahari 1) fails to apply
the sale proceeds to further reduce debt, including the
US$200 million bonds; 2) is unable to defend its market share in
the hypermarket business; 3) experiences a decline in profit
margins, arising from intense competition in its hypermarket
business; and/or 4) expands its business through aggressive debt-
funded acquisitions.
In such a downgrade scenario, the company's credit metrics could
deteriorate with Adjusted Debt/EBITDA above 4.0-4.5x and Adjusted
EBITDA/Interest below 2.0-2.5x on a sustained basis.
The last rating action for Matahari was taken on 27 January 2010,
when Moody's placed its B1 corporate family and senior unsecured
ratings on review for possible downgrade.
PT Matahari Putra Prima Tbk is a leading retailer in Indonesia
with multiple retail formats. It operates hypermarkets,
supermarkets and family entertainment outlets in over 39 cities in
the country. The Lippo group controls about 57% of Matahari's
equity interest.
PERUSAHAAN GAS: Moody's Gives Positive Outlook on 'Ba2' Rating
--------------------------------------------------------------
Moody's Investors Service has changed the outlook to positive from
stable of PT Perusahaan Gas Negara's Ba2 corporate family rating.
The rating action follows Moody's decision to change the
Indonesian government's Ba2 long-term foreign-currency and local-
currency ratings outlook to positive from stable.
The Ba2 rating of PGN combines: (1) the company's standalone
credit strength of Ba2; and b) the credit support that Moody's
believes its majority owner, the Indonesian government, is likely
to provide it in a distress situation.
"PGN's standalone credit assessment is underpinned by its solid
operating profile, strong market position, favorable trends in gas
demand, and the relatively stable nature of the transmission and
distribution business," says Jennifer Wong, a Moody's AVP/Analyst.
"At the same time, its standalone credit strength incorporates the
potential for volatility in distribution cash flows due to the
mismatch between its sales contracts and supply contracts, and its
venture into newer businesses, such as its LNG Terminal," adds
Wong. "Nevertheless, its projected overall financial profile in
the next few years strongly positions it at Ba2 in terms of its
stand-alone credit strength."
Given PGN's strong financial metrics and operating environment,
the main impetus for upward rating pressure would be a change in
the outlook for the Indonesian government's rating, given the
medium support and medium dependence factored into PGN's ratings.
As such, an upgrade in the sovereign ratings combined with the
maintenance of a strong credit profile is likely to result in
positive upward pressure on PGN's ratings.
The last rating action relative PGN was on 7 December 2009 when
Moody's upgraded its senior unsecured bond rating to Ba2.
Established in 1965, Perusahaan Gas Negara is primarily engaged in
the transmission and distribution of natural gas. Its
transmission business mainly operates under its 60%-owned
subsidiary, PT Transportasi Gas Indonesia, while its distribution
business has a strong market share of over 87%.
PERUSAHAAN LISTRIK: Moody's Gives Positive Outlook on 'Ba2' Rating
------------------------------------------------------------------
Moody's Investors Service has changed the outlook to positive from
stable of PT Perusahaan Listrik Negara's Ba2 corporate family and
senior unsecured bond ratings.
The rating action follows Moody's decision to change the
Indonesian government's Ba2 long-term foreign-currency and local-
currency ratings outlook to positive from stable.
"In light of PLN's 100% ownership by the Ministry of State-Owned
Enterprises, its strategic importance as Indonesia's only
vertically-integrated electricity utility, as well as the
government subsidies it receives to ensure its financial viability
and operational soundness, Moody's considers PLN's rating to be
closely integrated with, and strongly linked to, the government's
credit quality," says Jennifer Wong, a Moody's AVP/Analyst.
Moody's last rating action with regard to PLN occurred on 16
September 2009, when the company's corporate family and senior
unsecured ratings were upgraded to Ba2 with a stable outlook.
PT Perusahaan Listrik Negara is an Indonesian state-owned
vertically-integrated electricity utility with a generation
capacity of over 27,000MW. It is a monopoly operator of
transmission and distribution networks and is the country's
largest electricity producer. The government -- as represented by
the MSOE -- has complete ownership.
GARUDA INDONESIA: Seeks US$2 Billion in Loans for Fleet Expansion
-----------------------------------------------------------------
PT Garuda Indonesia said Monday it was in talks with Export-Import
Bank of the United States for a loan worth up to US$2 billion to
be used to expand its fleet, The Jakarta Globe reports.
The Globe relates Garuda President Director Emirsyah Satar said
the company had submitted a loan proposal and was in talks with
the bank for a loan ranging from US$1.5 billion to US$2 billion,
with the money to be spent to lease 10 Boeing 777s and 10 Boeing
737-380s.
The report says Garuda is undergoing a major expansion of its
fleet, with plans to increase the number of planes to 103 by 2013,
up from 67 at the end of last year.
According to the Globe, Garuda has spent most of the year
restructuring debt. In January, it reached an agreement with
debt-holders to restructure international and local-currency debt,
including buying back US$138 million in debt, to clean up its
balance sheet ahead of its IPO.
As reported in the Troubled Company Reporter-Asia Pacific on
August 13, 2009, Garuda Indonesia expects to raise as much as
US$400 million from its much-awaited Initial Public Offering in
June this year. The expected launch, however, is based on a
positive outlook of the market condition, vis-a-vis investor
sentiment.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
* Moody's Changes Outlook on Indonesia's 'Ba2' Rating to Positive
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on Indonesia's
Ba2 local- and foreign-currency sovereign ratings to positive,
from stable. The improvement in the outlook also applies to
Indonesia's Ba1 foreign currency bond ceiling and Ba3 foreign
currency deposit ceiling.
The positive outlook broadly reflects the country's capacity for
sustained strong growth, the overall stability and effectiveness
of its fiscal and monetary policies, and expectations of further
improvements in the government's financial and debt position.
"The core of Indonesia's growth story is driven by a large
domestic market that is appropriately managed by a well-tested
economic policy framework," says Mr. Aninda Mitra, Moody's Vice-
President and its lead sovereign analyst for Indonesia.
"A series of external disturbances, culminating -most recently- in
instability in several European sovereign debt markets, have had
no serious implications on Indonesia's credit fundamentals --
which remain on an improving trend," adds Ms. Mitra.
He also notes that the government remains committed to political
and financial stability. This is underscored by its concerted
crackdown against terrorist groups. And recent appointments and
nominations at the finance ministry and at the central bank are
supportive of policy continuity and institutional credibility.
Investigations into the alleged irregularities in the bailout of
Bank Century represents primarily an internal political struggle
within the ruling coalition. Nonetheless, fiscal and monetary
policy management remains unaffected and incremental progress in
structural reforms, in several key areas, is still likely," says
Ms. Mitra.
According to Ms. Mitra, the improving trajectory of Indonesia's
sovereign rating incorporates the significant reduction in the
government's debt burden and its fiscal financing requirements
relative to many ratings peers. It also reflects the ongoing
diversification seen in the government's sources of fiscal
funding.
"However, in the future, the deepening of domestic capital markets
-- which include a larger role for a reliable domestic
institutional funding base -- could lend greater stability and
structurally improve the government's market access, as well as
help sustain the positive momentum in sovereign ratings," says Ms.
Mitra.
The increase in Indonesia's foreign currency reserves is also
notable, while better prospects for foreign direct investment
could sustain further improvements in the overall external
position in line with its sovereign ratings peers. Moreover,
access to exceptional funds from the Chiang Mai multilateral
initiative, in the event of need, is another supportive
development for the ratings.
"Improvements in the level and composition of the government's
debt, if accompanied by sustained improvement of the country's
external position, or a deepening of domestic markets, would be
the most likely triggers for a future upgrade," says Mitra.
Lastly, "the recent widening of the overnight interest rate
corridors, and greater restrictions on the holding period of Bank
Indonesia securities' holdings are ratings neutral as it does not
fundamentally restrict the timely and comprehensive servicing of
credit obligations," says Mitra.
Moody's last rating action on Indonesia was on September 16, 2009,
when the sovereign rating was upgraded to Ba2 with a stable
outlook.
=========
J A P A N
=========
ALL NIPPON: Mulls Setting Up Low Cost Carrier at Kansai Airport
---------------------------------------------------------------
All Nippon Airways Co. has started talks with Kansai International
Airport Co. with an eye to setting up a low-cost carrier based at
the Osaka Prefecture airport to operate domestic and international
routes as early as next fiscal year, Kyodo News reports citing
sources.
According to Kyodo, its sources said ANA plans to set up the
subsidiary under a different brand name, and routes to be operated
by the carrier are expected to mainly connect Japan with China and
South Korea.
The report relates that the sources said the struggling
international airport is considering building a terminal aimed
exclusively at serving low-cost carriers. Kyodo said its sources
added that the carrier is likely to employ foreign pilots and
flight attendants, and simplify in-flight services to reduce
costs.
Plans To Buy 15 MRJ Regional Jets
Meanwhile, The Economic Times reports that All Nippon Airways Co.
said on Monday that it plans to buy 15 MRJ regional jets,
currently developed by Mitsubishi Heavy Industries Ltd, for about
JPY69.2 billion.
Mitsubishi is keen to drum up more business for the MRJ, which is
likely to compete against Brazilian aircraft maker Embraer's
regional jet series, The Economic Times says.
About ANA
All Nippon Airways Co. Ltd. -- http://www.ana.co.jp/-- is a
Japan-based company engaged in three business segments. Its Air
Transportation segment is engaged in the air transportation
business, as well as the provision of services at airports, the
provision of reservation services through telephones and the
maintenance of aircrafts in the country and overseas markets. The
Traveling segment develops, plans and sells tour packages under
the brand names ANA Hello Tour and ANA Sky Holiday. This segment
also offers services to travelers and sells travel products and
air tickets. The Others segment is involved in the information
communications, real estate, building management, land
transportation and airplane fixture repair businesses, among
others. The company has 112 subsidiaries and 40 associated
companies.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 23, 2009, Moody's Investors Service downgraded the long-term
debt ratings of All Nippon Airways Co., Ltd., to Ba2 from Baa3.
The outlook is stable.
JLOC 36: S&P Puts Ratings on Notes on CreditWatch Negative
----------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on JLOC 36
LLC's floating-rate secured notes, classes C1 and C2, on
CreditWatch with negative implications. At the same time,
Standard & Poor's affirmed its ratings on the class A1 through B,
D, and X secured notes issued under the same transaction.
Of the 34 loans that initially backed the transaction, six loans
(originally representing a combined 22.6% or so of the total
initial issuance amount of the notes) have defaulted so far. With
regard to two of the six defaulted loans (two loans originally
representing a combined 2.9% or so of the total initial issuance
amount of the notes), the related collateral properties have been
sold, and the full amounts of the loans (rated portions) have been
recovered. Meanwhile, the servicer is proceeding with the
liquidation of the properties backing the remaining four defaulted
loans (originally representing a combined 19.7% or so of the total
initial issuance amount of the notes). There remain 25 loans
including these four defaulted loans.
S&P placed the ratings on classes C1 and C2 on CreditWatch with
negative implications because: (1) S&P is of the opinion that
there appears to be uncertainty over the recovery prospects of the
properties backing the transaction's 14 remaining loans that are
due to mature by the end of 2011 (14 loans originally representing
a combined 61.1% or so of the total initial issuance amount of the
notes); and (2) S&P believes that uncertainty is clouding the
recovery prospects of the properties backing five of the
transaction's seven remaining loans that are due to mature after
2011 (five loans originally representing a combined 9.5% or so of
the total initial issuance amount of the notes) given the types
and locations of the properties.
S&P intends to review its ratings on the classes that S&P placed
on CreditWatch with negative implications after assessing a number
of factors, including the likely recovery amount from the
properties backing the aforementioned 14 loans maturing by the end
of 2011 and those backing the aforementioned five loans maturing
after 2011. In addition, S&P will monitor the progress of
collections from the four loans that have defaulted and whose
collateral properties have yet to be sold. It is highly possible
that the recovery amount from the sales of the collateral
properties backing some of the four loans may be less than the
loan amounts (rated portions), which would very likely affect
payments on the most subordinate class D notes.
JLOC 36 is a multi-borrower CMBS transaction. The notes were
originally secured by 34 nonrecourse loans, which were originally
backed by 99 real estate properties. The transaction was arranged
by Morgan Stanley Japan Securities Co. Ltd., and Premier Asset
Management & Loan Services Corp. is the transaction 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 in February 2016 for the class A1 to A3 notes, the
full payment of interest and ultimate repayment of principal by
the legal final maturity date for the class B to D notes, and the
timely payment of available interest for the class X notes.
Ratings Placed On Creditwatch Negative
JLOC 36 LLC
Secured notes due February 2016
Class To From Initial Issue Amount
----- -- ---- --------------------
C1 A-/Watch Neg A- JPY3.6 bil.
C2 A-/Watch Neg A- EUR24,250,000
Ratings Affirmed
Class Rating Initial Issue Amount
----- ------ --------------------
A1 AAA JPY29.05 bil.
A2 AAA EUR65,300,000
A3 AAA $8,000,000
B AA JPY6.8 bil.
D CCC JPY4.3 bil.
X (IO) AAA JPY59.1 bil. (initial notional principal)
* Interest-only
The issue date was May 2007.
TOYO PROPERTY: S&P Downgrades Corporate Credit Rating to 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'BB+' from 'BBB-'
its long-term corporate credit rating on Toyo Property Co. Ltd.
The downgrade reflects S&P's view that Toyo Property will take a
certain amount of time to restore the profitability of its
mainstay wholesale commercial property brokerage business, which
remains sluggish, through the reform of its earnings structure,
amid a flagging real estate market. In addition, the company's
liquidity in hand, which has underpinned its sound financial
position, is likely to fall due to changes in its business model
and financial policy. The outlook is stable based on S&P's
assumptions that the soundness of Toyo Property's financial base
is unlikely to materially deteriorate, even after its financial
policy changes.
Toyo Property's earnings substantially declined in fiscal 2008
(ended March 31, 2009) and fiscal 2009 (ended March 31, 2010),
reflecting the vulnerability of the company's core wholesale
brokerage business to fluctuations in real estate and financial
market conditions and regulatory systems. The company has been
hit hard by the negative effects of the flagging real estate
market since the global financial crisis. This indicates that its
competitive advantage, such as its own information channels
regarding the buying and selling of properties and strong customer
base, has been weakening. Against a background of a considerable
drop in transaction volume among real estate agents, which
supported the company's earnings, Toyo Property is focusing on
strengthening its marketing through reorganization and fostering
human resources as a part of its earnings structure reform, in a
bid to develop new information channels. However, Standard &
Poor's expects that a recovery in Toyo Property's profitability
will take time.
Toyo Property's debt-to-capital structure is sound because
liquidity in hand exceeds interest-bearing debt. Nevertheless,
the company's free cash flow has remained negative for several
years owing to an earnings decline and an increase in investments.
The company's conservative financial policy and management have
thus far supported its sound financial position, as well as the
rating on the company to a great extent. However, Toyo Property
is expected to bear a somewhat heavy investment burden to achieve
its profitability recovery. In association with this, the company
eased its internal financial standards, which is highly likely to
cause the company's liquidity in hand to fall below interest-
bearing debt. On the other hand, even if the investment burden
grows, the company's debt is unlikely to increase as Toyo Property
is expected to allocate its liquidity in hand to the investments.
That said, Standard & Poor's believes that Toyo Property's
financial policy has become less conservative, and its liquidity
is likely to decline. As a result, S&P concluded that the factors
that underpinned the rating have weakened.
The outlook on the long-term rating is stable. Toyo Property's
financial performance is showing signs of bottoming out as the
company's transaction volume is recovering in tandem with the
gradual recovery in the real estate market since the second half
of fiscal 2009 (Oct. 1, 2009, to March 31, 2010). Although the
company eased its internal financial standards, Toyo Property's
capital ratio is expected to stay at a sound level of about 65%,
and there are no unrealized losses in its fixed assets, which
account for over 40% of total assets. As such, Standard & Poor's
believes that the company is highly likely to maintain its sound
financial base.
However, S&P may consider lowering the rating if S&P see Toyo
Property's debt-to-capital structure as highly likely to
deteriorate. This could be triggered by these: the company is
unable to cover fixed costs by cash flow due to prolonged earnings
deterioration; new investments for the earnings structure reform
deteriorate the company's funds, or the reform makes a limited
contribution to building good client relationships; and
substantial unrealized losses in fixed assets are incurred due to
deterioration in the real estate market. Conversely, the rating
may experience upward movement if Toyo Property is highly likely
to raise its ability to weather the deterioration in the real
estate market and financial environment, and at the same time, to
enhance the soundness of its financial position. This would
require the company to improve and stabilize its profitability by
reconstructing its core wholesale commercial property brokerage
business through enhancement of its information and customer
bases.
===============
M A L A Y S I A
===============
ARK RESOURCES: Appoints Rahman as Chairman
------------------------------------------
Ark Resources Berhad has appointed Dato' Mohd Salleh bin Yeop Abd
Rahman as its new chairman.
Upon graduation in 1970, Mr. Rahman joined Bank Negara Malaysia as
an Assistant Economist. He moved on to Bank Bumiputra Malaysia
Bhd in 1973 and remained there until 1988. During his 16 years in
BBMB, he served in various capacities including Senior Economist
in the Research & Planning Department, Special Executive Assistant
to the Chairman, the first New York Branch Manager, Deputy General
Manager of the International Banking Division, Director and Chief
Executive of Bumiputra Merchant Bankers Berhad (the Bank's
subsidiary merchant bank) and was the General Manager of the
Corporate Banking Division of BBMB before he left. In 1990, he
moved on to be the Chief Executive Officer of SJ Securities Sdn.
Bhd., a local stockbroking firm in the Klang Valley. In 1993, he
left to join Granite Industries Berhad (a company listed on the
KLSE) and served as its Managing Director until 1994. He then
joined and assumed his present position in January 1995 as the
Managing Director of Tunas Selatan Construction Sdn. Bhd., a
construction company which has since successfully completed
several major projects including a Government turnkey contract to
design and build the new Sungai Buloh Hospital Complex with 620
beds and College of Allied Health Sciences for 3000 trainees, the
UiTM Clinical Training Center and its Institute of Medical
Molecular Biotechnology also in Sungai Buloh; and the sub-
contractor for the first phase of University Malaysia Pahang in
Kuantan. He has been the Chairman of Associated Air-Pak
Industries Sdn. Bhd. (a company producing packaging and
construction materials) and its group of companies since 1997. He
was appointed to the Boards of Merbok Hilir Berhad, Merbok MDF
Sdn. Bhd., a group involved in the production and export of
rubberwood MDF panelboards since their inception in 1993.
About ARK Resources
ARK Resources Berhad, formerly known as Lankhorst Berhad --
http://www.lankhorst.com.my/-- is an investment holding company
with headquarters in Shah Alam, Malaysia. Through its
subsidiaries, the Company provides civil and geotechnical
engineering
* * *
On April 24, 2006, ARK Resources Berhad was classified as an
affected listed issuer under the Bourse's Practice Note 17/2005.
It was, therefore, required to submit and implement a plan to
regularize its financial condition category.
FOUNTAIN VIEW: Bentayan Transfers Leasehold to Fountain View Land
-----------------------------------------------------------------
Fountain View Development Bhd is transferring an additional 86.35
acres of leasehold land held by Mujur Zaman Sdn Bhd, a wholly
owned sub-subsidiary of Bentayan Holdings Sdn Bhd, which in turn a
wholly owned direct subsidiary of the Company to Fountain View
Land Sdn Bhd, a wholly owned subsidiary of the Company.
The Proposal entails the transfer of one parcel of 99 years
leasehold land situated at Mukim of Ijok, Daerah Kuala Selangor,
State of Selangor Darul Ehsan held under title no. PT-9149 (H.S.D
5474) measuring approximately 86.35 acres.
The Proposed Additional Transfer is part of the Proposed Internal
Assets Reorganization exercise to achieve greater operational
efficiency and activity via direct control over its assets in FVDB
Group.
The Proposal does not have any impact on the share capital,
shareholdings of the substantial shareholders, earnings and net
assets of FVDB Group.
About Fountain View
Fountain View Development Berhad is a Malaysia-based investment
holding company. The Company operates in four segments:
Plantation, Property development, Investment and Elimination. The
Company principally operates in Malaysia. Its subsidiaries
includes Citra Tani Sdn. Bhd., Everange Sdn. Bhd., Fountain View
Land Sdn. Bhd., Invescor Ventures Sdn. Bhd., Bentayan Holdings
Sdn. Bhd., Fountain View Realty Sdn. Bhd., Bentayan Properties
Sdn. Bhd., Mujur Zaman Sdn. Bhd., MZ Development Sdn. Bhd. and
Extrogold Sdn. Bhd.
Fountain View Development Berhad has been considered as an
Affected Listed Issuer under Practice Note No. 17 of the Bursa
Malaysia Securities Berhad as it has triggered Paragraph 2.1(h) of
the PN17 for having an insignificant business or operation.
The Company's unaudited second quarterly financial result ended
June 30, 2009, recorded no revenue resulting in the Company
triggering Paragraph 2.1 (h) of the PN17.
LCL CORP: Appoints Messrs UHY to Conduct Special Review
-------------------------------------------------------
LCL Corporation Bhd has appointed Messrs UHY to carry out a
special review on LCL?s trade receivables and contracts of work-
in-progress.
The purpose of the Special Review is a result of the announcement
of LCL?s unaudited financial statements for the fourth quarter
ending December 31, 2009, on February 23, 2010. The Company had
announced a loss before tax of MYR327.1 million of which were
mainly attributed to among others, writing down of contracts of
work-in-progress (MYR170.966 million) and allowance of doubtful
debts (MYR113.988 million).
The proposed scope of work for the Special Review which will
emphasize on the material amount of trade receivables and
contracts of work-in-progress based on UHY?s materiality
assessment worksheet and on a sampling basis are:
Trade receivables
-- reviewing the accounting systems and related internal
Control;
-- reviewing and verifying receivables with significant
balances and to ascertain the validity and existence
of the said receivables as at December 31, 2009;
-- performing analytical procedures on trade receivables
for the past 3 years and commenting on significant
variation of major debtors; and
-- reviewing the Group?s credit evaluation systems and
bad debts provision policies.
Contracts of work-in-progress
-- reviewing the accounting systems and related internal
control;
-- reviewing and testing the method of allocating overheads;
-- reviewing specific contracts which suffer significant
losses and cost written off or offset in the past 3 years
to identify any significant or unusual transaction; and
-- performing analytical procedures on contracts of work-in-
progress for the past 3 years and commenting on significant
variation of major contracts.
A report on UHY?s assessment will be issued to LCL upon completion
of the Special Review.
UHY is expected to commence work on the Special Review from
June 21, 2010, and will take approximately 8-10 weeks to complete.
About LCL Corp
Based in Malaysia, LCL Corporation Berhad (KUL:LCL) --
http://www.lclgroup.com.my/-- is an investment holding company
engaged in the provision of management services to the
subsidiaries. It operates in five segments: interior fit-out
services, which provides interior fit-out works and services,
including project management, design and consultancy, procurement,
construction and installation; manufacturing of furniture, which
is engaged in the manufacture of customized furniture and
fixtures, generic furniture; supply and installation of materials
and fittings, which is engaged in the supply and installation of
ceiling materials, metal fittings and fixtures and stone
materials; trading of furniture and building materials, including
interior fit-out materials, and others, which comprises investment
holding and/or property development activities of the Company and
certain subsidiaries.
LCL Corp Bhd. has been classified as an Affected Listed Issuer
under Practice Note 17 of Bursa Malaysia Securities Berhad as the
Company is unable to provide a solvency declaration to Bursa
Securities following a default in its loan payments pursuant to
Practice Note 1/2001.
====================
N E W Z E A L A N D
====================
AORANGI SECURITIES: Government Appoints Statutory Manager
---------------------------------------------------------
Tracy Withers at Bloomberg News reports that New Zealand has
appointed a statutory manager for Aorangi Securities Ltd. and
seven trusts, which are associated with businessman Allan Hubbard,
to protect investors and prevent fraud.
Citing Commerce Minister Simon Power's e-mailed statement,
Bloomberg News relates that Mr. Hubbard and his wife are also
subject to statutory management because they are so closely
connected with the businesses.
"The main objectives are to prevent fraud and reckless company
management, to protect investors and to enable the orderly
administration of a company's affairs," Bloomberg News quoted Mr.
Power as saying.
According to Bloomberg News, Mr. Power said regulators considered
other remedies but chose statutory management because of the
circumstances, which include loans to related parties not being
property secured and documented. Some matters have been referred
to the Serious Fraud Office for potential breaches of the Crimes
Act.
The seven charitable trusts included in the statutory management
are Te Tua, Otipua, Oxford, Regent, Morgan, Benmore and Wai-iti.
The New Zealand Herald reports that South Canterbury Finance, with
which the elderly Mr. Hubbard was closely associated, was not part
of the statutory management order.
Trevor Thornton and Richard Simpson of Grant Thornton were
appointed as statutory managers, and were expected to be in touch
with investors soon, the Herald discloses.
Aorangi was incorporated in 1974 and is solely controlled by the
Hubbards, who are both directors.
DYNASTY GROUP: Creditors' Meeting Moved Next Week
-------------------------------------------------
The New Zealand Herald reports that creditors of Dynasty Group
have asked for more time to consider whether a proposal to repay
them 2c in the dollar is "as good as it gets".
The report says May Wang, a Chinese businesswoman who is fronting
a $1.5 billion bid to buy up New Zealand dairy farms, was due to
face creditors in her collapsed Dynasty Group in Auckland Monday
with a proposal she hoped would stave off bankruptcy.
The New Zealand Herald relates Ms. Wang's lawyer Paul Sills said
the decision had been made to postpone the meeting to next week
allow creditors more time to ask questions of their debtor.
"A lot of the secured creditors need a lot of things ticked off to
make sure they satisfy themselves that this is as good as it
gets," the report quoted Mr. Sills as saying. Mr. Sills said
creditors were particularly interested in plans by UBNZ, a company
which Wang is fronting, to spend $1.5 billion to acquire New
Zealand dairy farms, including the Crafar farms.
"There has been so much press about it. It obviously raises
everyone's curiosity and they (the creditors) want to be happy in
their own minds that they are distinctly separate issues," he
said.
As reported in the Troubled Company Reporter-Asia Pacific on
June 16, 2010, Mr. Sills is confident creditors in Ms. Wang's
Dynasty Group will accept her proposal to repay them just 2c in
the dollar to settle $22 million dollar debt. Ms. Wang plans to
use money from consultancy work during the next three years to pay
creditors in the Dynasty group a minimum payment of NZ$500,000.
Creditors were supposedly vote on her proposal on June 21.
Associate Judge Jeremy Doogue adjourned Westpac's application to
bankrupt Wang in the Auckland High Court to give creditors time to
vote on her proposal. Westpac had applied to court to bankrupt
Ms. Wang over debts of NZ$620,000 while Allied Nationwide Finance,
as a supporting creditor, is owed about NZ$250,000.
The Herald says Ms. Wang is due back in court on June 29.
Dynasty Group collapsed in 2008 owing creditors about NZ$22
million.
INVESTMENT RESEARCH: Fails to File Full Year Accounts
-----------------------------------------------------
Investment Research Group had its stock and warrants suspended
after failing to file its full-year accounts, Jonathan Underhill
at the BusinessWire reports.
The report says the accounts were required under NZAX listing
rules to be filed by June 14 and the NZX gave the company until
Monday, June 21, to comply.
However, managing director Brent King said last week it would take
two-to-three weeks to complete the accounts. He blamed a change
in personnel for the delays. According to the report, Mr. King
said the results would be in line with its May 11 update, when IRG
said profit from operations was about NZ$175,000 for the year
ended March 31, though this may be "impacted adversely by write
downs in the carrying values of assets."
In the past two years, the report notes, IRG shares have slumped
90%, under-performing the NZAX index, which is down 60%. The
shares last traded at 1.1 cent on June 9, giving the company a
market value of NZ$1.67 million. The June 30, 2011, warrants show
no trading activity on the NZX Web site.
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 21, 2009, Investment Research Group Ltd reached agreement
with its bankers after breaching banking covenants that prevented
the company from filing annual accounts.
IRG managing director Brent King said, "We have . . . signed a
letter of offer with our Bank confirming the ongoing funding of
the business. The issue arose due to differing interpretations on
the ratio definitions."
"This matter has been resolved and the bank has agreed to a
proposal that we presented to them. As part of the agreement, the
bank has provided a Waiver of Breach and hence we are now in a
position to finalize the annual accounts," Mr. King said.
Mr. King further noted, "We were not able to complete the Annual
Report until the Bank matter was finalized. The company shares
are currently suspended from trading pending the filing of the
Annual Report. We are working with our Auditors and will file
this as soon as practical. As previously stated, IRG intends to
raise approximately NZ$500,000."
The company earlier said it requires approximately NZ$500,000 of
additional capital to remedy the breach of its shareholders funds
covenant.
About IRG
Based in New Zealand, Investment Research Group Limited (NZE:IRG)
-- http://www.irg.co.nz/-- formerly known as Viking Capital
Limited, is engaged in investing in and providing professional
services to organizations in New Zealand and overseas. The
Company's subsidiary businesses are IRG Media, IRG Portfolio and
IRG Investment Advisers. IRG Media includes all the media
publications of the Company, including New Zealand Investor
Monthly an investment magazine; Equity weekly, an e-mail
Newsletter; MoneyOnline newsletter; McEwen Investment Report, a
weekly subscription newsletter; IRG Investment year Book, an
yearbook giving five-year data on listed New Zealand and
Australian shares. IRG Portfolio focuses on portfolio service
using Aegis, the custodial platform. The service gives clients a
full-service investment advisory product. IRG Investment Advisers
business offers advisory and sharebroking services to clients. On
May 13, 2008, the Company announced the purchase of the businesses
of Equity Investment Advisers and MoneyOnline.
SOUTH CANTERBURY: Issues Amended Prospectus to Raise New Funds
--------------------------------------------------------------
South Canterbury Finance Ltd. has issued an amended prospectus to
raise new funds, saying the 'attack' on owner Allan Hubbard's
character may dent its ability to tap the public for cash, an
article posted at stuff.co.nz says.
The report relates SCF said the appointment of statutory managers
in respect to Mr. Hubbard and some of his business interests over
alleged lending irregularities "may adversely affect the ability
of the company to raise funds from the public given the long-
standing relationship that Mr. and Mrs. Hubbard have had with the
company and the public perception likely to be created by the
appointment of statutory managers."
The firm flagged the issue as a liquidity risk and a threat to its
continued supply of funding in its amended prospectus, the report
says.
According to the report, South Canterbury had to pull withdraw and
update its prospectus on June 21 after the government placed
Mr. Hubbard and some of his interests under statutory management.
Still, the report notes, Commerce Minister Simon Power
specifically excluded the finance company, and Treasury affirmed
that its eligible investors were still covered by the retail
deposit guarantee.
The report says the move against Mr. Hubbard comes as a so-called
"wall of maturities," worth some NZ$519 million, draws near when
the initial government deposit guarantee expires on Oct. 12.
Mr. Hubbard stepped down from the board of South Canterbury
Finance last month, taking on the title President for Life.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on-
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance. Southbury Group
Limited holds a controlling interest in the Company. Its
subsidiaries include Ashburtin Finance Ltd, Auckland Finance Ltd,
Canterbury Finance Ltd, Coversure Guarantee Ltd, Face Finance Ltd,
Helicopter Nominees Ltd, Hotnchurch Ltd, Otage Finance Ltd,
Palmerston North Finance Ltd, Rental cars Ltd, ZSCFG Systems Ltd,
Walkato Finance Ltd and Wellington Finance Ltd.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
June 2, 2010, Standard & Poor's lowered its long-term rating on
New Zealand finance company South Canterbury Finance Ltd. to 'B+'
from 'BB'. At the same time, the 'B+' rating was removed from
CreditWatch Negative, where it was initially placed on March 2,
2010, and placed on CreditWatch Developing. The 'B' short-term
rating is affirmed.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE AIRLINES: Union to Appeal DoLE's Retrenchment Order
--------------------------------------------------------------
The Philippine Airlines Employees' Association plans to appeal the
Department of Labor and Employment's decision to let Philippine
Airlines continue with retrenchments, BusinessWorld Online
reports.
The report relates PALEA President Gerardo F. Rivera said the
union was disappointed with the decision and would exhaust all
legal remedies.
According to the report, the June 15 decision penned by Acting
Labor Secretary Romeo Lagman favored PAL management's plan to
outsource three non-core operations. Outsourcing call center,
catering, and ground services will displace more than 2,600
workers and is estimated to yield savings of PHP1 billion to
PHP1.5 billion, the report says.
BusinessWorld notes that the distressed airline plans to pay
around PHP2 billion in benefits to retrenched employees, who will
get separation pay equivalent to one month's salary for every year
of service.
In April this year, the labor department assumed jurisdiction over
the dispute by moderating discussions between the union and the
airline's management.
"PALEA's motion for reconsideration to be filed on or before
June 28 is still subject to acceptance or rejection," Mr. Roque
told BusinessWorld in a telephone interview.
As reported in the Troubled Company Reporter-Asia Pacific on
April 21, 2010, the Manila Bulletin said that the Philippine
Airlines is spinning off its three non-core units as a last resort
to avoid bankruptcy. PAL will spin off its three non-core units:
inflight catering services; airport services, including ground
handling, cargo handling and ramp handling; and call center
reservations by May 31, the Manila Bulletin said. According to
The Manila Standard Today, the PAL Employees Union estimated that
2,000 to 4,000 employees assigned to those departments could be
retired. The Manila Standard related that PAL president Jaime
Bautista said competition from overseas carriers, slower global
economic growth, and higher oil prices had prompted the airline to
slash its non-core businesses. The carrier had approached several
investors but failed to secure financial help, and equity had
dropped to a worrisome US$1.1 million as of February 2010,
according to the Manila Standard. "We approached the government
for help but it, too, was in dire financial straits," the Manila
Standard quoted Mr. Bautista as saying.
About Philippine Airlines
Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline. It was the first airline in
Asia and the oldest of those currently in operation. With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights. First taking off in
1941, the carrier has grown into a fleet of about 40 aircraft
(including five Boeing 747-400s) flying to more than 20 domestic
points and about 30 foreign destinations.
=================
S I N G A P O R E
=================
GLOBAL A&T: Moody's Gives Stable Outlook; Keeps 'B1' Rating
-----------------------------------------------------------
Moody's Investors Service has changed the ratings outlook of
Global A&T Electronics Ltd to stable from negative.
At the same time, Moody's has affirmed its B1 corporate family
rating, its Ba3 first-lien term loan facility and first-lien
revolving facility, and its B2 second-lien notes.
"The change in outlook to stable reflects GATE's healthy balance
sheet cash level -- US$327 million as of March 2010 -- to support
capital expenditure and to buffer it against the cyclicality of
the outsourcing assembly and test business," says Ken Chan, a
Moody's Vice President and Senior Analyst.
"It also reflects the company's low level of near-term debt
maturities and improved business mix, which includes an increase
in its mixed signal logic products and its reduced reliance on the
memory sector," says Chan.
With its acquisition of ASAT Limited in January 2010, GATE's MSLP
business now accounts for 51% of its revenue, up from 44%, and its
more volatile memory segment accounts for 17%, down from 22%.
"As a result, Moody's expects GATE's credit profile to show some
improvement in interest coverage, specifically EBITDA/interest of
3.0 -- 3.5x over the next 2 years," says Chan, adding, "However,
its debt/capitalization is expected to remain high above 70%,
thereby constraining its rating."
GATE's B1 rating continues to reflect the volatility of its OSAT
business, its high degree of customer concentration, and its track
record of growing through acquisitions.
It also reflects GATE's global position in the OSAT business and
its steps to improve its product mix and liquidity position.
Upward rating pressure would be limited in view of the volatile
nature of GATE's business and its high debt to capitalization
ratio.
On the other hand, downward rating pressure could arise if (1)
GATE's balance sheet liquidity materially deteriorates, either due
to higher-than-expected cash burn, or further aggressive
acquisitions; and/or (2) GATE loses its market position, or
suffers declines in profitability, and which lead to a further
deterioration in its financial profile, such that adjusted
debt/capitalization exceeds 80% and/or EBITDA/interest coverage
falls below 2.0x over the cycle.
The last rating action was on 21 August 2008 when GATE's rating
outlook was changed to negative from stable after a weaker-than-
expected operating performance was reported in its 1H08 interim
results.
Global A&T Electronics Ltd is the holding company of United Test
and Assembly Center Ltd, a provider of semiconductor assembly and
test services with manufacturing facilities in Singapore, Taiwan,
Thailand and China. UTAC was privatized through a leverage buy-
out by a private equity group led by TPG Capital and Affinity
Equity Partners in October 2007.
===============
X X X X X X X X
===============
* Bingham Expands Investment Management Practice to Hong Kong
-------------------------------------------------------------
Bingham McCutchen LLP has expanded its leading Investment
Management Group to Hong Kong with the addition of Anne-Marie
Godfrey as partner.
Ms. Godfrey has extensive experience advising investment managers
in Asia on the establishment and regulation of hedge funds, mutual
funds and private equity funds. She advises investment advisers,
fund administrators, trustees and other fund service providers on
investment fund-related issues.
"Anne-Marie will add significant value to our U.S. fund clients
with ties to Asia," said Roger Joseph, head of Bingham's
Investment Management Group and co-leader of the Financial
Services Area. "Her arrival underscores the critical role Asia
plays in Bingham's growth strategy in advising clients on global
and complex issues."
Bingham's Investment Management Group represents both U.S. and
non-U.S. managers, advisers and funds. The practice is a key
component of Bingham's Financial Services Area, which has more
than 300 lawyers based in key capital markets in the United
States, United Kingdom and Asia and provides a full range of
regulatory, transactional, compliance, enforcement and litigation
services to clients worldwide.
Bingham's platform, talent and the opportunity to integrate her
work for clients throughout the Asia-Pacific region attracted
Ms. Godfrey to the firm.
"I was drawn to the strength and reputation of Bingham's fund
practice in the United States and its European funds regulatory
practice in London," said Ms. Godfrey, who will focus on fund
formation in Hong Kong. She will also provide regulatory advice
to investment managers establishing funds in Hong Kong and will
work with Bingham's Tokyo office in providing fund formation
services to Japanese investment managers. "I'm excited to be
spearheading Bingham's fund practice in Asia."
Ms. Godfrey, who is admitted as a solicitor in Hong Kong, England
and Wales, and Ireland, has advised on the establishment and
ongoing offering of hedge funds, private equity and retail funds,
and on the structuring of funds to comply with Asian regulatory
requirements. She advises clients in relation to administration,
custody, prime brokerage, loan and security documents, swaps and
derivative agreements, netting agreements and credit support
documents. She also advises on European regulatory issues and has
obtained Securities and Futures Commission (SFC) authorization for
European UCITS funds for distribution to the retail public in
Hong Kong. She has advised Hong Kong, Japan and Singapore-based
institutional and boutique investment managers on the
establishment of hedge funds, private equity and retail mutual
funds.
Ms. Godfrey, who joins from Maples and Calder, is the latest in a
string of laterals to join Bingham. Michael Glazer joined
Bingham's Investment Management Group in Los Angeles last year.
Davina Garrod, an EU antitrust lawyer who also represents
financial services companies and funds, joined Bingham's London
office in January, providing the Investment Management Group and
Financial Services Area with additional European capabilities.
Susan Merrill, former head of enforcement at the Financial
Industry Regulatory Authority, joined Bingham's broker-dealer
practice in New York in April, and Lizzie Baird joined the broker-
dealer practice in Washington in March. Former U.S. Securities
and Exchange Commission Chairman Christopher Cox joined Bingham in
California last July.
Bingham's Hong Kong office consists of Hong Kong, English and
Australian qualified lawyers who have extensive experience in
financial restructuring, investment funds, and corporate and
finance transactions.
Bingham -- http://www.bingham.com/-- offers a broad range of
market-leading practices focused on global financial services
firms and Fortune 100 companies. The firm has 1,100 lawyers in 12
locations in the United States, United Kingdom and Asia.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
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. 3, 2010
AMERICAN BANKRUPTCY INSTITUTE
Atlanta Consumer Bankruptcy Skills Training
Georgia State Bar Building, Atlanta, Ga.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 11-14, 2010
AMERICAN BANKRUPTCY INSTITUTE
Hawai.i Bankruptcy Workshop
The Fairmont Orchid, Big Island, Hawaii
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 14, 2010
AMERICAN BANKRUPTCY INSTITUTE
ABI/NYIC Golf and Tennis Fundraiser
Maplewood Golf Club, Maplewood, N.J.
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 20, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
Complex Financial Restructuring Program
Fordham Law School, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 23-25, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Four Seasons Las Vegas, Las Vegas, Nev.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 1, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
ABI/UMKC Midwestern Bankruptcy Institute
Kansas City Marriott Downtown, Kansas City, Kan.
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/
Oct. 11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Chicago Consumer Bankruptcy Conference
Standard Club, Chicago, Ill.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 15, 2010
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Hilton New Orleans Riverside, New Orleans, La.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 29, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
The Savoy, London, England
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. __, 2010
AMERICAN BANKRUPTCY INSTITUTE
Delaware Views from the Bench and Bankruptcy Bar
Hotel du Pont, Wilmington, Del.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Detroit Consumer Bankruptcy Conference
Hyatt Regency Dearborn, Dearborn, Mich.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 9-11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Camelback Inn, a JW Marriott Resort & Spa,
Scottsdale, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.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/
Jan. 20-21, 2011
AMERICAN BANKRUPTCY INSTITUTE
Rocky Mountain Bankruptcy Conference
Westin Tabor Center, Denver, Colo.
Contact: 1-703-739-0800; http://www.abiworld.org/
January 26-28, 2011
TURNAROUND MANAGEMENT ASSOCIATION
TMA Distressed Investing Conference
Aria Las Vegas
Contact: http://www.turnaround.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
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, Mich.
Contact: http://www.abiworld.org/
July 21-24, 2011
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 4-6, 2011 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Tampa Convention Center, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 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, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
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 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 ***