/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100809.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, August 9, 2010, Vol. 13, No. 155 Headlines A U S T R A L I A * Insolvency Figures Jump 4% to 848 in June H O N G K O N G CESSNA LEISURE: Creditors' Proofs of Debt Due September 6 CHIU WING: Members' and Creditors' Meetings Set for August 13 DUNHILL LIMITED: Commences Wind-Up Proceedings GARNET SHIELD: Members' Final Meeting Set for September 7 GIP PARTNERS: Creditors' Proofs of Debt Due August 31 GLORY ACHIEVE: Creditors' Proofs of Debt Due September 6 INGRAM MICRO: Members' Final Meeting Set for September 6 MACRO UNIVERSE: Members' Final Meeting Set for September 7 PAPYRUS TRADE: Seng and Lo Step Down as Liquidators PARENT EDUCATION: Members' Final Meeting Set for September 9 PEOPLE'S DEMOCRACY: Szeto May Mirana Steps Down as Liquidator SERVICE COMPANY: Members' Final Meeting Set for September 6 SHINKO SECURITIES: Members' Final Meeting Set for September 6 SILVER RAY: Tam Kan Wing Steps Down as Liquidator SOLUTION 6: Members' Final Meeting Set for September 6 I N D I A AAKASH TILES: ICRA Places 'LB' Rating on INR13cr Fund-Based Limits AGROFLEX REINFORCE: ICRA Places 'LBB-' Rating on INR1.5cr Loan ASP SEALING: ICRA Puts 'LBB+' Rating on INR115MM Fund Based Limits ATLANTA ELECTRICALS: CRISIL Reaffirms 'B+' Ratings on Loans C.C. CONSTRUCTION: CRISIL Puts 'BB-' Rating on INR40MM Cash Credit DSA ELECTRO: CRISIL Reaffirms 'BB+' Rating on INR74.2MM LT Loan FUELCO COAL: CRISIL Reaffirms 'BB+' Rating on INR70MM Cash Credit ICON GRANITO: ICRA Assigns 'LBB' Rating to INR8cr Term Loans KINGFISHER AIRLINES: HPCL Won't Sell Jet Fuel to Firm for Credit PAWA INTERNATIONAL: Fitch Assigns 'B-' National Long-Term Rating SARAVANA TEXTILES: ICRA Puts 'LBB' Rating on INR51.2MM Term Loan SHARDA SPUNTEX: CRISIL Reaffirms 'D' Ratings on Various Bank Debts SHEKHAWATI POLY-YARN: CRISIL Reaffirms 'BB-' Ratings on Loans SWARAJ INDIA: CRISIL Cuts Ratings on Various Bank Debts to 'D' TATA POWER: Shorlisted for Geothermal Power Project in Indonesia TODAY WRITING: CRISIL Reaffirms 'D' Ratings on Various Bank Debts VIRGO POLYMERS: ICRA Assigns 'LBB' Rating to INR5cr Bank Debts J A P A N ALL NIPPON: To Launch Tokyo-Jakarta, Tokyo-Manila Routes Next Year LEHMAN BROTHERS: Hires Momo-o Matsuo as Japan Counsel N E W Z E A L A N D ALLIED FARMERS: In Talks With Trustee Over Breach of Trust Deed AORANGI SECURITIES: Investors Call for Action Against SecCom P H I L I P P I N E S ALLIED BANKING: Fitch Affirms 'D' Individual Rating PHILIPPINE NAT'L BANK: Fitch Affirms 'D/E' Individual Rating S I N G A P O R E COMFORT RESOURCES: Court to Hear Wind-Up Petition on August 20 EAGLE MONEY: Creditors' Proofs of Debt Due August 20 ENERGENICS PTE: Court to Hear Wind-Up Petition on Aug. 20 GESSIT PTE: Creditors' Proofs of Debt Due August 20 HYPERBARIC: Court to Hear Wind-Up Petition on August 20 IPACS TECHNOLOGY: Creditors' Proofs of Debt Due August 27 IPACS TECHNOLOGY: Creditors' Meetings Set for September 1 MICROMUSE SINGAPORE: Creditors' Proofs of Debt Due September 6 QIMONDA MANUFACTURING: Creditors' Proofs of Debt Due August 23 SINO-ENVIRONMENT TECHNOLOGY: Creditors' Proofs of Debt Due Aug. 17 SINO-ENVIRONMENT TECHNOLOGY: Creditors' First Meeting Set Aug. 18 UMCI LTD: Creditors' Proofs of Debt Due September 6 VEITH TOOLING: Court Enters Wind-Up Order WORLDWIDE INVESTIGATION: Creditors' Proofs of Debt Due September 6 T A I W A N NANYA TECHNOLOGY: Sales Decline 2.5% to NT$5.1 Billion in July V I E T N A M VIETNAM SHIPBUILDING: Government Plans to Restructure Firm - - - - - ================= A U S T R A L I A ================= * Insolvency Figures Jump 4% to 848 in June ------------------------------------------- The number of businesses falling into insolvency increased 4% in June to 848, as SMEs continue to struggle with weak consumer spending and tight credit conditions, Patrick Stafford at SmartCompany reports. The report, citing figures from the Australian Securities and Investments Commission, discloses that New South Wales recorded the highest number of collapses at 337, up from last month's count of 332. Victoria came in second at 204, followed by Queensland at 196. While the number of insolvencies in June fell from the 914 recorded during May, SmartCompany relates Michael Ryan, the managing director of accountancy group Taylor Woodings, said the monthly decline isn't a sign that the wave of SME collapses will stop. "These June figures are higher than the June figures last year, and this year's May figures are higher than May last year. We looked back at the statistics over the past 10 years, and these are the highest May and June insolvencies over the decade," the report quoted Mr. Woodings as saying. "This is the sign of a lot of built-up pressure in businesses in Australia. That pressure is coming from costs of living, consumer demand, and tight liquidity within the banking sector. It is still extremely difficult for SMEs to obtain working capital, and so these insolvencies are the results of a long period of pressure on those businesses. Really, there doesn't seem to be any light at the end of the tunnel." ================ H O N G K O N G ================ CESSNA LEISURE: Creditors' Proofs of Debt Due September 6 --------------------------------------------------------- Creditors of Cessna Leisure Products Company Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by September 6, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 30, 2010. The company's liquidators are: Andrew C.C. Ma Felix K.L. Lee 19th Floor, Seaview Commerical Building 21-24 Connaught Road West Hong Kong CHIU WING: Members' and Creditors' Meetings Set for August 13 ------------------------------------------------------------- Members and creditors of Chiu Wing Enterprise Company Limited will hold their annual meeting on August 13, 2010, at 4:00 p.m., at the offices of FS Asia Advisory Limited, 14th floor, the Hong Kong Club Building, 3A Chater Road, Central, in Hong Kong. At the meeting, Fok Hei Yu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. DUNHILL LIMITED: Commences Wind-Up Proceedings ---------------------------------------------- Members of Dunhill Limited, on July 23, 2010, passed a resolution to voluntarily wind-up the company's operations. The company's liquidator is: Betty Betty Yeung Paul David Stuart Moyes Level 28, Three Pacific Place 1 Queen?s Road East Hong Kong GARNET SHIELD: Members' Final Meeting Set for September 7 --------------------------------------------------------- Members of Garnet Shield Limited will hold their final meeting on September 7, 2010, at 10:30 a.m., at 25/F., Wing On Centre, 111 Connaught Road Central, in Hong Kong. At the meeting, Kong Chi How Johnson, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GIP PARTNERS: Creditors' Proofs of Debt Due August 31 ----------------------------------------------------- Creditors of Gip Partners Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by August 31, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 22, 2010. The company's liquidators are: Chow Yiu Wah Joseph Unit 501, 5th Floor Mirror Tower 61 Mody Road Tsimshatsui East Kowloon, Hong Kong GLORY ACHIEVE: Creditors' Proofs of Debt Due September 6 -------------------------------------------------------- Creditors of Glory Achieve Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by September 6, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 28, 2010. The company's liquidators are: Richard Joseph Barrett 97 Upper Leeson Street Dublin 2 Republic of Ireland Rory John Williams 2, Sorbonne, Ardilea Clonskeagh, Dublin 14 Republic of Ireland INGRAM MICRO: Members' Final Meeting Set for September 6 -------------------------------------------------------- Members of Ingram Micro (Hong Kong) Limited will hold their final meeting on September 6, 2010, at 10:00 a.m., at 35th Floor, One Pacific Place, 88 Queensway, in Hong Kong. At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. MACRO UNIVERSE: Members' Final Meeting Set for September 7 ---------------------------------------------------------- Members of Macro Universe Limited will hold their final meeting on September 7, 2010, at 10:00 a.m., at 25/F., Wing On Centre, 111 Connaught Road Central, in Hong Kong. At the meeting, Kong Chi How Johnson, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PAPYRUS TRADE: Seng and Lo Step Down as Liquidators --------------------------------------------------- Natalia K M Seng and Susan Y H Lo stepped down as liquidators of Papyrus Trade Services Limited on July 24, 2010. The company's liquidators are: Natalia K M Seng Susan Y H Lo Level 28, Three Pacific Place 1 Queen?s Road East Hong Kong PARENT EDUCATION: Members' Final Meeting Set for September 9 ------------------------------------------------------------ Members of Parent Education Promoters Limited will hold their final general meeting on September 9, 2010, at 11:00 a.m., at 6/F, Hong Kong Scout Centre, Austin Road, in Kowloon. At the meeting, Lau Kai Tai, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PEOPLE'S DEMOCRACY: Szeto May Mirana Steps Down as Liquidator ------------------------------------------------------------- Szeto May Mirana stepped down as liquidator of People?s Democracy Foundation Limited on August 6, 2010. SERVICE COMPANY: Members' Final Meeting Set for September 6 ----------------------------------------------------------- Members of Service Company One Limited will hold their final meeting on September 6, 2010, at 10:00 a.m., at 8th Floor, Gloucester Tower, The Landmark, 15 Queen?s Road Central, in Hong Kong. At the meeting, Iain Ferguson Bruce, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SHINKO SECURITIES: Members' Final Meeting Set for September 6 ------------------------------------------------------------- Members of Shinko Securities (H.K.) Limited will hold their final meeting on September 6, 2010, at 9:30 a.m., at 35th Floor, One Pacific Place, 88 Queensway, in Hong Kong. At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. SILVER RAY: Tam Kan Wing Steps Down as Liquidator ------------------------------------------------- Tam Kan Wing stepped down as liquidator of Silver Ray Investments Limited on July 26, 2010. SOLUTION 6: Members' Final Meeting Set for September 6 ------------------------------------------------------ Members of Solution 6 (Asia) Limited will hold their final meeting on September 6, 2010, at 11:00 a.m., at FTI Consulting (Asia) Limited, 1008 Shui On Centre, 6-8 Harbour Road, Wan Chai, in Hong Kong. At the meeting, Bruno Arboit, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= AAKASH TILES: ICRA Places 'LB' Rating on INR13cr Fund-Based Limits ------------------------------------------------------------------ ICRA has assigned an 'LB' rating to the INR13.00 crores fund-based limits and INR48.75 Cr. term loan facility of Aakash Tiles Private Limited. ICRA has also assigned an 'A4' rating to the INR5.00 Cr. short term LC limits and to the INR3.00 Cr. short term bank guarantee limits. The ratings are constrained by unsatisfactory debt servicing track record of the company as reflected by the delays in the term loan repayments; limited track record of the commercial operations; significant costs and time overruns on the recently completed project and highly competitive nature of the ceramic tile industry. The ratings also take into account ATPL's relatively lower visibility of its brand compared to other large organized players as well vulnerability of the profitability to the cyclicality associated with the real estate industry and to the availability and increasing prices of gas, as gas is major source of fuel. The ratings however take comfort from the long track record of the promoters in the premium segment of ceramic industry, viz. marble and granite segment; favorable demand outlook for vitrified tiles in India driven by steady revival of the residential real estate segment. About Aakash Tiles Aakash Tiles Private Limited was incorporated in December, 2006 as Jai Tiles Private Limited to manufacture vitrified tiles with its production facilities located at Jhagadia Industrial Estate, Bharuch, Gujarat. The company was promoted by Mr. Piyush Mathur and Mr. Ashok Kumar Jain. Due to the costs overrun, the promoters roped in Aakash Group as the investors. The Aakash group currently holds about 51% equity stake and has also taken over management control. The name of the Company was changed to Aakash Tiles Private Limited (ATPL) w.e.f November 13, 2009. The installed manufacturing capacity of the company is approx. 80000 MTPA which translates into 7000 boxes per day. AGROFLEX REINFORCE: ICRA Places 'LBB-' Rating on INR1.5cr Loan -------------------------------------------------------------- ICRA has assigned an 'LBB-' rating to INR 1.5 crore fund based cash credit limits of Agroflex Reinforce Inc.; the outlook on the rating is Stable. ICRA has also assigned an A4 (pronounced A four) rating to INR 4.0 crore short-term non-fund based letter of credit facility of Agroflex. The ratings are constrained by the fragmented industry structure with limited entry barriers; modest scale of operations with limited infrastructure and restricted geographical presence; weak bargaining power with suppliers; vulnerability of earnings to foreign exchange fluctuations; underlying cyclicality of prices of the commodities traded leading to volatility of margins and the weak financial risk profile characterized by low operating margins, moderate gearing level and modest coverage indicators. Moreover, the capital structure of the firm is vulnerable to the withdrawal of capital by the partners. The ratings, however, favorably factor the positive demand outlook for the polymer and specialty chemicals in the near-term; the long track record of the promoters in the polymer and chemical trading industry and established relationships with customers in Tamil Nadu and Pondicherry regions. About Agroflex Reinforce Agroflex Reinforce Inc. is a partnership firm engaged in trading of polymers and chemicals. The firm is a part of the Daga Group5 which is headquartered in Bengaluru and is involved in the manufacturing and trading of plastic and related raw materials. The firm was established in the year 1985 to manufacture PVC conduit pipes and electrical fittings by Mr. Dhanraj Daga. In 1989, the firm was converted into a trading unit for plastic raw materials and chemicals. The registered office of the firm is in Chennai and the primary areas of operations are Tamil Nadu and Pondicherry. The firm reported operating income of INR 10.1 crore and net profit after tax of INR 0.1 crore in FY2010. ASP SEALING: ICRA Puts 'LBB+' Rating on INR115MM Fund Based Limits ------------------------------------------------------------------ ICRA has assigned a long term rating of 'LBB+' to the INR115 million fund based facilities of ASP Sealing Products Limited. The outlook on the long term rating is stable. ICRA has also assigned an 'A4+' rating to the INR50.0 million non fund based facilities of ASPL. The assigned ratings reflect the long standing track record of the promoters; ASPL?s diversified presence across business segments, access to technology through its associate Kaufil Sealing Technologies, Spain (KST); and strong customer relationship in the commercial automobile segment. ICRA also notes the improving outlook within the automobile ancillary industry due to increasing demand from OEMs. The ratings are however constrained on account of moderate scale of operations, high competitive intensity in the industry and exposure to supplier concentration risk. While assigning the ratings, ICRA has also noted the tight liquidity position on account of high business growth and capital expenditure planned by ASPL, the total size of which is significant as compared to its current asset base. The risks are further accentuated as the company has not been able to tie-up funds for its proposed expansion plan as yet. Going forward, the company?s ability to execute the planned capital expenditure in time and simultaneously grow its revenues and profitability will remain the key rating sensitivities. About ASP Sealing ASP Sealing Products Limited was incorporated in 1989 as Anand SAIAG Private Limited. Thereafter in November 1994 it was converted to a Limited Company and in August 1996 the name of the Company was changed to ASP Sealing Products Limited. ASPL was later discharged from the purview of BIFR in August 2007. The Company is engaged in the manufacturing of automotive EPDM/PVC profiles and industrial hoses. With its manufacturing facilities at Gajraulla (Uttar Pradesh) and Bara (Uttarakhand); ASPL?s product offering includes windshield rubbers, co-extruded profiles/trims, flocked glass run channels, glazing rubbers, building profiles etc. The Company is managed by Mr. G.S.Anand, Chairman and Managing Director, who has more than 15 years of experience in the industry and Mr. Gurdeep Singh Anand and Mr. Rishipal Singh Anand. ASPL has well diversified presence across business segments. It recorded a net profit of Rs 31.96 million on an operating income of INR 523.07 million for the financial year ending on March 31, 2010. ATLANTA ELECTRICALS: CRISIL Reaffirms 'B+' Ratings on Loans ----------------------------------------------------------- CRISIL's ratings on Atlanta Electricals Pvt Ltd's bank facilities continue to reflect AEPL's small scale of operations, weak financial risk profile, particularly liquidity, because of large and increasing working capital requirements, and exposure to risks related to intense competition in the transformers segment. These rating weaknesses are partially offset by AEPL's strong track record in the transformers segment, and healthy order book. Facilities Ratings ---------- ------- INR150.0 Million Cash Credit Limit B+/Stable (Reaffirmed) INR55.5 Million Term Loan B+/Stable (Reaffirmed) INR214.5 Million Bank guarantee P4 (Reaffirmed) INR35.0 Million Letter of Credit P4 (Reaffirmed) Outlook: Stable CRISIL believes that AEPL's financial risk profile will remain constrained because of high gearing and small net worth, over the medium term. The outlook may be revised to 'Positive' if AEPL's working capital cycle improves, leading to improvement in its liquidity. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile weakens, as a result of significant delays in recovering dues from customers, or large debt-funded capacity expansion programme. About Atlanta Electricals Set up in 1982 as a proprietorship firm, AEPL was reconstituted as a private limited company in 1995. It manufactures power transformers with capacities up to 220 kilovolts at its manufacturing unit at Anand (Gujarat). AEPL supplies to various state electricity boards and private companies. AEPL reported a profit after tax (PAT) of INR49 million on net sales of INR526.9 million for 2009-10 (refers to financial year, April 1 to March 31) against a PAT of INR13.5 million on net sales of INR215.1 million for 2008-09. C.C. CONSTRUCTION: CRISIL Puts 'BB-' Rating on INR40MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank facilities of C.C.Construction. Facilities Ratings ---------- ------- INR40 Million Cash Credit BB-/Stable (Assigned) INR60 Million Bank Guarantee P4+ (Assigned) The ratings reflect CCC's exposure to risks relating to revenue concentration and working-capital-intensive operations. These weaknesses are partially offset by CCC's healthy revenue visibility, resulting from a moderate order book and promoters' experience in the civil construction segment. Outlook: Stable CRISIL believes that CCC will benefit from the healthy growth prospects of the civil construction industry over the medium term. The outlook may be revised to 'Positive' if CCC strengthens its business risk profile through greater segmental and geographical diversity, while stabilizing its operating margin. Conversely, the outlook may be revised to 'Negative' if the firm's financial risk profile deteriorates because of additional large, debt-funded capital expenditure or acquisition. About C.C. Construction Set up as a partnership firm in 1982 by Mr. S N Choudhary and his relatives, CCC undertakes civil construction activities, which involve earth cutting, earth filling, and bridgework for North Eastern Frontier Railways (NEFR) in northeastern India; the firm has so far executed projects only for NEFR. CCC reported a profit after tax (PAT) of INR8.2 million on net sales of INR195 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR 4.2 million on net sales of INR186 million for 2008-09. DSA ELECTRO: CRISIL Reaffirms 'BB+' Rating on INR74.2MM LT Loan --------------------------------------------------------------- CRISIL's ratings on the bank facilities of DSA Electro Controls Pvt Ltd continue to reflect DSA's stretched financial risk profile, driven by large working capital requirements, and its exposure to risks relating to customer concentration in its revenue profile. These weaknesses are partially offset by DSA's established customer relationships, and stable operating margin. Facilities Ratings ---------- ------- INR85.0 Million Cash Credit BB+/Stable (Reaffirmed) INR74.2 Million Long-Term Loan BB+/Stable (Reaffirmed) INR9.7 Million Standby Line of Credit P4+ (Reaffirmed) INR50.0 Million Bank Guarantee P4+ (Reaffirmed) Outlook: Stable CRISIL believes that DSA will maintain a stable business risk profile over the medium term, backed by a healthy order book and the experience of its promoters in electro control panels and related businesses. The outlook may be revised to 'Positive' in case of improvement in the company's revenues and operating profitability, which would strengthen its capital structure and debt protection measures. Conversely, the outlook may be revised to 'Negative' if DSA undertakes a large, debt-funded capital expenditure programme, or in case of a fall in its revenues and operating profitability, adversely impacting its financial risk profile. DSA has registered a 20 per cent year-on-year growth in its revenues for 2009-10 (refers to financial year, April 1 to March 31). However, its operating margin, at 18.79 per cent, is marginally lower than that of the previous year. The company has a robust order book, and is expected to generate sales in the range of INR400 million to INR450 million in 2010-11. DSA had a gearing of 1.14 times as on March 31, 2010, which is better than the gearing a year earlier because of the company's improved net worth. The company's debt protection indicators continue to remain moderate, with the interest coverage ratio at 2.5 times and the net cash accruals to total debt ratio at 19 per cent for 2009-10. Its liquidity remains stretched, with the overall bank limit utilizations at 92 per cent during the 12-month period ended June 2010. However, the working capital loan of INR50 million obtained from the bank is expected to ease the pressure on the company's liquidity. DSA has entered into separate joint ventures (JVs) with two Italian lift manufacturing companies. While the investment in these JVs is low, at INR1.15 million as on date, they are expected to increase to up to INR10 million in 2010-11. These investments are likely to be financed through internal accruals of the company. About DSA Electro DSA, incorporated in 1996, designs and manufactures control panels, automation systems, wire harnesses, water jet cutting systems and is also engaged in sheet metal fabrication. The company, promoted and managed by Mr. Ashok Vijay Subhedar, has its manufacturing facilities at Wada (Maharashtra). FUELCO COAL: CRISIL Reaffirms 'BB+' Rating on INR70MM Cash Credit ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Fuelco Coal (India) Ltd continue to reflect FCIL's small scale of operations and limited geographic reach in the coal trading business, and exposure to risks related to customer concentration in its revenue profile. These weaknesses are partially offset by FCIL's moderate financial risk profile and promoter's experience in the coal business. Facilities Ratings ---------- ------- INR70.0 Million Cash Credit BB+/Stable (Reaffirmed) INR50.0 Million Letter of Credit P4+ (Reaffirmed) INR25.0 Million Bank Guarantee P4+ (Reaffirmed) Outlook: Stable CRISIL believes that FCIL will continue to benefit from its healthy relationships with customers and promoter's experience in the coal business. The outlook may be revised to 'Positive' if FCIL's financial risk profile improves significantly, driven by sustained improvement in operating margins and additional equity infusion. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile weakens because of larger- than-expected debt-funded capital expenditure (capex). Update FCIL's net sales declined in 2009-10 (refers to financial year, April 1 to March 31) to INR537.9 million from INR661.1 million in 2008-09. The decline was primarily because of slowdown in demand from the industrial sector (steel, power and cement etc) and FCIL's management's decision of trading with only high credit worthy customers and offering relatively lower credit period. Although, the turnover of the company declined significantly in 2009-10, its profitability increased because of favourable raw material prices. The company's operating profit is estimated to be INR18 million (3.3 per cent operating margin), which is higher than CRISIL's earlier estimates of INR17 million (2.2 per cent). FCIL's improved operating profit has resulted in more-t6han- expected profit after tax (PAT) and net cash accruals (although lower than previous year's levels). FCIL has maintained its business risk profile, backed by established relationships with its customers and experience of its promoters in coal business. FCIL's PAT and net sales are estimated at about INR7.6 million and INR537.9 million, respectively, for 2009-10, against a reported PAT of INR14.6 million on net sales of INR661.1 million for 2008- 09. About Fuelco Coal Set up in 2004 by Mr. Naval Kishore Agarwal, FCIL procures coal through e-auctions conducted by Coal India Ltd. FCIL's sells to end-users across multiple industries including paper, textile, chemical, and cement, apart from other coal traders. The company also undertakes liaisoning and transportation services for companies with coal linkages. The promoters have set up other companies which are into transportation, coal washery, real estate, sponge iron manufacturing, and power generation. ICON GRANITO: ICRA Assigns 'LBB' Rating to INR8cr Term Loans ------------------------------------------------------------ ICRA has assigned an 'LBB' rating to the INR8.0 crores term loans and INR 6.0 crores cash credit facility of Icon Granito Private Limited. The outlook for the rating is stable. ICRA has also assigned an 'A4' rating to the INR2.0 crores, short-term, non-fund based limits of IGPL. The ratings are constrained by IGPL's relatively small size of operations; limited track record of commercial operations; highly competitive nature of the ceramic tile industry and relatively lower visibility of IGPL's brand compared to other large organized players. The ratings also take into account IGPL?s weak financial risk profile, high working capital intensity and lower net profitability due to high interest outgo on account of debt funded capex. Moreover, the company?s revenues and cash flows are exposed to cyclicality in the real estate industry. However, the ratings favorably consider the healthy ramp-up of operations by IGPL since commencement; prior experience of the promoters in the ceramic industry; the agreement for supply of vitrified tiles to Somany Ceramics Limited which provides partial visibility to the revenues and stable demand for vitrified tiles in the domestic market. About Icon Granito Company Profile Icon Granito Private Limited was incorporated in August 2007 to manufacture vitrified tiles with its production facilities at Morbi, Gujarat. The reported installed capacity for the company is 40000 MT pa which translates into ~1,07,000 boxes per month. The company markets its product under the brand name Icon. KINGFISHER AIRLINES: HPCL Won't Sell Jet Fuel to Firm for Credit ---------------------------------------------------------------- Hindustan Petroleum Corp Ltd. will sell jet fuel to Kingfisher Airlines only against cash as the airline failed to provide bank guarantee cover against payment defaults, The Economic Times reports. "Currently, Kingfisher Airlines has been put on cash-and- carry arrangement by HPCL as they have been unable to fulfill the obligations imposed by HPCL board," the report quoted Minister of State for Petroleum and Natural Gas Jitin Prasad as saying. The report says Kingfisher buys jet fuel (or ATF) on a 60-day credit cycle. The cash-strapped airline has defaulted on payment of INR224.95 crore, beyond the agreed credit period as on March 31. Together with late payment interest of INR50.87 crore, Kingfisher had an overdue of INR275.82 crore. The report relates Prasad said Kingfisher had a total outstanding of INR525.54 crore as on March 31. This included Rs 249.72 crore due that was well within the agreed credit period and Rs 275.82 crore overdue outstanding. According to the report, the airline had agreed to submit a bank guarantee of INR250 crore by June end. This collateral could be encashed by HPCL in case Kingfisher was to default in future. The airlines has however not kept its word. About Kingfisher Airlines Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/-- formerly known as Deccan Aviation Ltd., serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known for its United Breweries unit, and the carrier shares the Kingfisher brand with a popular Indian beer. UB Holdings also owns a stake in another domestic carrier, Air Deccan, whose operations it combined with Kingfisher Airlines in mid-2008. Kingfisher Airlines began flying in 2005. * * * Kingfisher Airlines posted three consecutive net losses of INR16.47 billion, INR21.40 billion and INR1.89 billion, for the years ended March 31, 2008 through March 31, 2010. PAWA INTERNATIONAL: Fitch Assigns 'B-' National Long-Term Rating ---------------------------------------------------------------- Fitch Ratings has assigned India's Pawa International Private Limited (Pawa) a National Long-term rating of 'B-(ind)'. The agency has also assigned 'B-(ind)' ratings to Pawa's INR175.5m long-term bank loans and 'B-(ind)'/'F4(ind)' ratings to its INR150m fund-based working capital limits. The Outlook is Stable. The ratings reflect the inherent risk in Pawa's business model with investments in risky businesses such as real estate and stock trading. There has been a sharp decline in its revenues from the car dealership business over FY09-FY10. The company sold most of its portfolio in the stock trading business resulting in net losses in FY09. The ratings are also moderated by the delays in leasing out of "Pawa Grand" property (Delhi), which resulted in a high leverage on the books of Pawa over FY09-FY10. The company has indicated that revenues from leasing out of this property are expected to start from Q3FY11. The ratings are supported by Pawa's plans of no major capex over the medium-term, as most of the capex has already been made and revenues have not yet started. Pawa has also reduced its exposure to the stock trading business with book value of investments reducing to INR37 million in FY10 (FY06: INR247 million). The company has also got rights to market Fiat Motors in India. Negative rating triggers include increased exposure in the risky business such as share trading, further delays in leasing out of the Pawa Grand property, and/ or any further debt-led capex. Positive rating triggers include Pawa's ability to operationalise the Pawa Grand property with long-term lease agreements having decent occupancy rate. Pawa had high investments in the stock market till FY08 (INR159 million), but this reduced to low levels in FY09 (INR40 million) and FY10 (INR37 million). As per provisional results for the year ended March 2010 (FY10), Pawa reported net revenues of INR458.8 million (FY09: INR723.1 million), an operating EBITDAR margin of 4.4% (FY09: 2.5%), a total adjusted debt of INR346.6 million (FY09: INR330 million), and a total adjusted debt/operating EBITDAR of 17.2x (FY09: 18.6x). Pawa started operations in December 2004 with the dealership business and then gradually entered into the real estate development business. The company also owns a real estate property in Goa - "Pawa Infocity". SARAVANA TEXTILES: ICRA Puts 'LBB' Rating on INR51.2MM Term Loan ---------------------------------------------------------------- ICRA has assigned 'LBB' rating to the INR51.2 million term loans and the INR50.0 million fund based facilities of Saravana Textiles Pvt Limited. The outlook on the rating is stable. ICRA has also assigned 'A4' rating to the INR7.0 million fund based limits and the INR13.2 million non-fund based facilities of STPL. The ratings factor in the small scale of operations of the company and the weak financial profile of the company characterized by highly leveraged capital structure, moderate profitability, low cash accruals and weak coverage indicators. ICRA notes that the earnings also remain exposed to fluctuation in raw material and other input costs as the company operates in a highly fragmented industry which restricts its ability to pass on increase in cost. The ratings also factor in the moderate customer concentration, established trade channels and the recent stable growth in turnover and profitability posed by the company and the significant experience of the promoters in spinning business. About Saravana Textiles Saravana Textiles Private Limited was incorporated in 1984 as Chari Textiles Private limited and is currently engaged in the manufacturing of cotton yarn. STPL has an installed capacity of 13,396 spindles as on July 30, 2010 in its manufacturing unit at Rajapalaiyam. The product range of the company consists mainly of coarse yarns of 20s and 40s count. The company produces 100% of its output in hank form and caters mainly to the handloom sector. STPL caters mainly to the demand of domestic market through trade depots at Karur and Ekambarakuppam. STPL reported net profit of INR2.0 million on an operating income of INR157.4 million in 2008- 09. Recent Results (Unaudited) STPL clocked an operating income of INR193.7 million for FY10. During the same period, the Company reported a profit after tax of INR 6.4 million SHARDA SPUNTEX: CRISIL Reaffirms 'D' Ratings on Various Bank Debts ------------------------------------------------------------------ CRISIL's ratings on Sharda Spuntex Pvt Ltd's bank facilities continue to reflect delays by SSPL in servicing the obligations on its bank facilities, following a dispute with its banker relating to cancellation of its forward contracts. The account has been in the non-performing assets (NPA) category of the bank since May 2009. Facilities Ratings ---------- ------- INR40.00 Million Cash Credit Limit D (Reaffirmed) INR21.7 Million Term Loan D (Reaffirmed) INR9.9 Million Proposed Long Term D (Reaffirmed) Bank Loan Facility INR207.50 Million Bill Discounting/ P5 (Reaffirmed) Purchase Limit INR62.50 Million Export Packing Credit P5 (Reaffirmed) / Post-Shipment Credit INR35.00 Million Standby Line of Credit P5 (Reaffirmed) INR310.00 Million Letter of Credit P5 (Reaffirmed) INR2.50 Million Bank Guarantee P5 (Reaffirmed) SSPL continues to remain exposed to risks related to a weak export market scenario and changes in government regulations. The company, nevertheless, benefits from its established market position in synthetic blended yarn segment, and continued focus on quality and service. For arriving at the ratings, CRISIL has combined the financial risk profiles of SSPL and its two wholly owned subsidiaries, Sharda Europe Sp Z. O. and Sharda Tekstil Madecilik San Ve TIC Ltd. This is because SSPL and its subsidiaries are in the same line of business, and SSPL sources yarn for the subsidiaries. About Sharda Spuntex Set up in 1994 by Mr. Anil Mansinghka, SSPL trades in synthetic blended yarn at Bhilwara (Rajasthan). The company was focused on the domestic markets till 2004; it set up subsidiaries in 2005 and 2006 in Poland, Turkey, and the UK to increase the export of blended yarn under its brand, Sharda. These companies maintain stock of yarn (procured directly from India or from SSPL) and sell to overseas customers. SHEKHAWATI POLY-YARN: CRISIL Reaffirms 'BB-' Ratings on Loans ------------------------------------------------------------- CRISIL has reaffirmed its 'BB-/Stable' ratings on Shekhawati Poly- Yarn Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR120.0 Million Cash Credit BB-/Stable (Reaffirmed) INR125.0 Million Long-Term Loan BB-/Stable (Reaffirmed) The ratings continue to reflect Shekhawati's subdued financial risk profile, and exposure to risks relating to limited pricing power, and the commodity nature of its products. These weaknesses are partially offset by the benefits that the company derives from its promoters' experience in the yarn industry. Outlook: Stable CRISIL believes that Shekhawati will continue to benefit from the promoters' experience, and the company's established presence, in the yarn industry. The outlook may be revised to 'Positive' if Shekhawati's sales volumes and operating margin increases, and its debt protection measures improve. Conversely, the outlook may be revised to 'Negative' if the company contracts large debt to fund capital expenditure (capex), further weakening its financial risk profile. Shekhawati's sales increased by 15 per cent to around INR892.1 million in 2009-10 (refers to financial year, April 1 to March 31) from around INR776.3 million in 2008?09 backed by increased sales volumes. The operating margin increased to 9.3 per cent in 2009-10 from 8 per cent in 2008?09, backed by improved realizations from sales. The profit after tax (PAT) increased to 3 per cent in 2009- 10 from 1.5 per cent in 2008?09. The company has undertaken a capex of INR400 million in 2009?10, to install 10 texturising machines, increasing its capacity to 27,400 tonnes per annum (tpa) from 13,200 tpa. Four texturising machines have already been installed, while the remaining six are to be installed by September 2010. The project is being funded by debt of INR250 million, equity infusion of INR75 million, and the remainder through internal accruals. The gearing increased to 2.1 times as on March 31, 2010 from 1.94 times a year ago. The company has proposed another large capex of INR360 million. This project will involve, installation of 30 knitting machines and 30 two-for-one twisting machines, and is likely to be funded by raising equity through the initial public offer (IPO) route. About Shekhawati Poly-Yarn Shekhawati, incorporated in 1990, is promoted by Mr. Ramniranjan Ruia and Mr. Mukesh Ruia, and manufactures polyester texturised yarn and twisted yarn at its manufacturing facilities at Silvassa. Shekhawati is part of the Ruia group, set up in 1968 by Mr. Ramniranjan Ruia. Shekhawati reported a PAT of INR26.8 million on net sales of INR892.1 million for 2009-10 as against a PAT of INR11.7 million on net sales of INR776.3 million for 2008-09. SWARAJ INDIA: CRISIL Cuts Ratings on Various Bank Debts to 'D' -------------------------------------------------------------- CRISIL has downgraded the ratings on Swaraj India Industries Ltd's bank facilities to 'D/P5' from 'BB/Stable/P4+'. The downgrade reflects the delay by SIIL in repaying its June 2010 term loan instalment; the delay was caused by SIIL's inadequate cash accruals, leading to weak liquidity. Facilities Ratings ---------- ------- INR200.0 Million Cash Credit D (Downgraded from BB/Stable) INR262 Million Term Loan D (Downgraded from BB/Stable) INR50 Million Letter of Credit/ Bank Guarantee P5 (Downgraded from P4+) SIIL has modest scale of operations and large working capital requirements. Moreover, its financial risk profile is moderate, marked by small net worth and high gearing. It is also susceptible to adverse regulatory changes and epidemic-related factors. However, SIIL has an established distribution network, strong relationships with suppliers and healthy operating efficiency. Set up by Mr. Ranjeetsingh Nimbalkar, SIIL markets pasteurised milk. The company has milk processing capacity of 0.6 million litres per day (lpd), and capacity to manufacture 20 tonnes per day (tpd) of ghee or 20 tpd of butter (or a mix of both) and 30 tpd of whole milk powder, skimmed milk powder and dairy whitener. SIIL reported a profit after tax (PAT) of INR34 million on net sales of INR1,468 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR14 million on net sales of INR1,084 million for 2008-09. TATA POWER: Shorlisted for Geothermal Power Project in Indonesia ---------------------------------------------------------------- The Indonesian government has shortlisted Medco Energi International and Tata Power as bidders for a geothermal power project in Indonesia, The Jakarta Globe reports citing an official at Ministry of Energy and Mineral Resources. The plant, planned for Sorik Merapi, North Sumatra, would have an initial capacity of 55 megawatts, before gradually ramping up to 200 MW, the report says. The report relates that Medco is part of a consortium with Ormat Technologies while Tata is partnering with Indonesian firm Supraco Energy for its bid. About Tata Power Tata Power Company Limited -- http://www.tatapower.com/-- is a licensee engaged in generation and supply power to bulk consumers in the Mumbai metropolitan area. The company operates four thermal plants with a combined capacity of 1,350 MW, and three hydroelectric plants aggregating 447 MW; all of these supply power to the Mumbai licence area. The company also has a plant that supplies power to Tata Steel. In addition, Tata Power has an 81- MW independent power project at Belgaum that sells power to Karnataka Power Transmission Corporation Limited. * * * Tata Power Company continues to carry Moody's Investors Service's 'Ba3' corporate family rating and 'B1' senior unsecured debt rating. The ratings outlook is stable. TODAY WRITING: CRISIL Reaffirms 'D' Ratings on Various Bank Debts ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Todays Writing Products Ltd continue to reflect the default by TWPL in meeting its rated debt obligations. The company has applied for corporate debt restructuring (CDR) and is in the final stages of obtaining approval from the CDR Empowered Group for implementation. Facilities Ratings ---------- ------- INR765 Million Cash Credit Facility D (Reaffirmed) INR105 Million Proposed Long-Term D (Reaffirmed) Bank Facility INR80 Million Letter of Credit P5 (Reaffirmed) INR30 Million Bill Discounting P5 (Reaffirmed) Promoted by Mr. Rajesh Drolia in 1992, TWPL is among the top five writing instrument companies in the country in terms of market share. The company has an installed production capacity of around 2 million pens per day at Dadra and Nagar Haveli. TWPL has ventured into a number of businesses, such as manufacture of equipment for pumps, providing oilfield equipment and services, and real estate development, through subsidiaries. As per the unaudited results declared by the company, TWPL reported a loss of INR383 million on net sales of INR617 million for 2009-10 (refers to financial year, April 1 to March 31), as against a reported loss of INR309 million on net sales of INR2.56 billion for 2008-09. VIRGO POLYMERS: ICRA Assigns 'LBB' Rating to INR5cr Bank Debts -------------------------------------------------------------- ICRA has assigned an 'LBB' rating to INR 5.0 crore fund based cash credit limits of Virgo Polymers (India) Limited; the outlook on the rating is Stable. ICRA has also assigned an 'A4' rating to INR 8.0 crore short-term non-fund based letter of credit and bank guarantee facilities of VPIL. The ratings are constrained by the fragmented nature of the FIBC (Flexible Intermediate Bulk Container) industry with low entry barriers; modest scale of operations and weak bargaining power with customers and suppliers; vulnerability of earnings on account of fluctuations in the Rupee- Dollar parity given the over one-third revenue exposure to exports and fluctuations of polymer prices; and moderate financial risk profile characterized by low operating margins and tight liquidity scenario. The ratings, however, factor the favorable demand outlook in the domestic FIBC market; integrated nature of operations of the Shyam Group of Entities that include consolidated procurement of polymers; and the long track record of the promoters in the polymer industry. About Virgo Polymers Company Profile: Virgo Polymers (India) Ltd., part of the Shyam group, is engaged in production of FIBC bags. The company was established in the year 1985 as Virgo Polybags Pvt. Ltd with an initial capacity of 180 metric tons per annum (mtpa). It was taken over by Mr. Ramadoss in 1990. The current promoters, the Ramsisaria family, joined as Directors in 2000. The company operates three manufacturing units in Maraimalai Nagar, Tamil Nadu, with total current capacity of 4960 mtpa. The company is held to the extent of 56% by the promoters and their associates and the rest of the stake is held by the public. The Shyam Group of companies has diverse interests including trading of polymers, non-banking finance activities and trading in securities, to mention a few. The company reported operating income of INR 34.02 crore and net profit after tax of INR 0.49 crore in 1H FY2010. ========= J A P A N ========= ALL NIPPON: To Launch Tokyo-Jakarta, Tokyo-Manila Routes Next Year ------------------------------------------------------------------ All Nippon Airways Co. will launch two new international routes from Narita next year, resuming the Narita-Jakarta route from January 2011, and inaugurating the Narita-Manila route in March 2011. ANA said it currently operates flights from Narita to Bangkok, Singapore and Ho-Chi-Min City and recently announced the launch of two additional services from Haneda to Bangkok and Singapore which will start in October. ANA also said that, due to the adjustments of the take-off and landing slots in the timetable for winter 2010, it will suspend its Nagoya (Chubu)-Shanghai (Pudong) route from October 31, 2010. 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. * * * All Nippon Airways Co., Ltd., continues to carry Moody's Investors Service 'Ba2' long term rating and 'Ba2' senior unsecured debt rating. 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. The rating action concludes the review for possible downgrade initiated by Moody's on November 2, 2009. The downgrade has been driven by ANA's weakening credit quality, due in turn to the deterioration in its earnings, and increasing uncertainty as to the extent and timing of government support to the airline industry, given the recent experience of Japan Airlines Corporation (not rated by Moody's), the holding company which owns Japan Airlines International Co., Ltd. (Caa1 on review for possible downgrade). LEHMAN BROTHERS: Hires Momo-o Matsuo as Japan Counsel ----------------------------------------------------- Lehman Brothers Holdings Inc. and its affiliated debtors seek court authority to employ Momo-o Matsuo & Namba as special counsel effective February 1, 2010. The Debtors tapped the firm to provide them legal assistance in connection with the civil rehabilitation proceedings of Lehman Brothers Holdings Japan Inc., Lehman Brothers Commercial Mortgage, Inc., and Sunrise Finance Inc. at the Tokyo District Court. Prior to the proposed employment, MMN worked as "ordinary course" professional for the Debtors, providing them advice in connection with the civil rehabilitation cases of the Japan-based Lehman units. The firm's fees and expenses, however, exceeded the $1 million compensation cap for ordinary course professionals, prompting the Debtors to retain the firm as a professional pursuant to Sections 327 and 328 of the Bankruptcy Code. MMN will be paid for its services on an hourly basis and will be reimbursed for its expenses. The firm's hourly rates are: Professionals Hourly Rates ------------- ------------ Partners JPY35,000 - JPY60,000 Senior Associates JPY30,000 - JPY35,000 Associates JPY20,000 - JPY30,000 In a declaration, Junya Naito, Esq., a partner at MMN, assures the Court that the firm does not represent or hold interest adverse to the Debtors and their estates. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ==================== N E W Z E A L A N D ==================== ALLIED FARMERS: In Talks With Trustee Over Breach of Trust Deed --------------------------------------------------------------- Allied Nationwide Finance Ltd has suspended its prospectus and is in talks with its trustee about a disputed breach of its trust deed finance ratios, The National Business Review reports. Allied Nationwide on Friday received a notice from Guardian Trust that it was in breach of one of the financial ratios and has 14 days to remedy the situation. The report says the finance company is covered by the Crown deposit guarantee scheme until October 12. NBR says the board and management of the company do not agree with the trustee's view. According to the report, Allied Nationwide's financial statements for the year ended June 30 are being audited, which should be completed by the end of August. NBR relates Allied Nationwide said it has presented financial information as at June 30 to the trustee, which shows that the relevant ratio of total liabilities to total tangible assets was, and is, complied with. Allied Nationwide continued to meet all its financial obligations, including repayment of maturing debentures, the report says. The company decided to immediately suspend its prospectus pending resolution, the report notes. About Allied Nationwide Allied Nationwide Finance Ltd. is a New Zealand-based finance and investment company. It is wholly owned subsidiary of NZX-listed Allied Farmers Limited. * * * As reported in the Troubled Company Reporter-Asia Pacific on June 9, 2010, Standard & Poor's Ratings Services lowered its long- term issuer credit rating on New Zealand finance company, Allied Nationwide Finance Ltd. to 'B' from 'BB-'. At the same time, the 'B/B' issuer credit ratings were placed on CreditWatch with negative implications. "The ratings actions reflect a material deterioration in ANF's liquidity position beyond what S&P previously expected and factored into the 'BB-' rating," Standard & Poor's credit analyst Peter Sikora said. "In S&P's view, this deterioration has increased ANF's exposure to a cash shortfall from now until October 2010 should reinvestment rates weaken from current already-modest levels or should cash inflows from loan repayments be delayed beyond S&P's current expectations." AORANGI SECURITIES: Investors Call for Action Against SecCom ------------------------------------------------------------ The National Business Review reports that about 200 investors in Aorangi Securities Ltd. and seven trusts, which are associated with Allan Hubbard, at a meeting on Friday called for the heads of regulators over their handling of matters relating to Mr. Hubbard. According to the report, the meeting was called by the group Exposing Unacceptable Financial Activities, which claims to represent people who have lost money in the spate of collapsed finance companies. As reported in the Troubled Company Reporter-Asia Pacific on July 27, 2010, Mr. Hubbard's supporters laid a complaint with the Ombudsman about the Serious Fraud Office investigation into some of his business interests. Radio New Zealand said the move to place the Hubbards and their interests under statutory management was made on advice from the Securities Commission. Paul Carruthers, a supporter of Mr. Hubbard, is calling for more investigation into a potential conflict of interest involving Securities Commission member Simon Botherway. Mr. Carruthers said Mr. Botherway should be stood down after he revealed a company belonging to his brother was put into receivership by Mr. Hubbard's firm South Canterbury Finance. According to NBR, Mr. Carruthers said Securities Commission chairwoman Jane Diplock knew of the alleged conflict of interest but had refused to take any action. Mr. Carruthers told investors at the meeting he believed with "all his heart" that the Hubbards were innocent and that the move to place them in statutory management had been a travesty of justice, NBR reports. The report relates that the meeting supported a six-part submission by Eufa to the Government demanding in addition to the dismissal of Mr. Botherway and Ms. Diplock, a halt to all further action and an apology to the Hubbards followed by a formal audit of the actions taken by authorities. The submission also calls for compensation for the Hubbards and their investors and a commission of inquiry into the saga. The commission has said it is satisfied Mr. Botherway did not have a conflict of interest as the statutory management did not apply to South Canterbury Finance. The TCR-AP, citing Bloomberg News, reported on June 23, 2010, that New Zealand appointed statutory managers for Aorangi Securities Ltd. and seven trusts, which are associated with Allan Hubbard, to protect investors and prevent fraud. Citing Commerce Minister Simon Power's e-mailed statement, Bloomberg News related that Mr. Hubbard and his wife are also subject to statutory management because they are so closely connected with the businesses. The seven charitable trusts included in the statutory management are Te Tua, Otipua, Oxford, Regent, Morgan, Benmore and Wai-iti. Trevor Thornton and Richard Simpson of Grant Thornton were appointed as statutory managers. More than 400 investors in Aorangi Securities owed NZ$96 million have been told by the statutory managers they will not receive any return of capital or interest in the short term, stuff.co.nz said. Aorangi Securities was incorporated in 1974 and is solely controlled by the Hubbards. ===================== P H I L I P P I N E S ===================== ALLIED BANKING: Fitch Affirms 'D' Individual Rating --------------------------------------------------- Fitch Ratings has affirmed the Individual Ratings of Philippine National Bank at 'D/E' and Allied Banking Corporation at 'D'. Concurrently, the agency also affirmed the Support Ratings of PNB at '3' and Allied Bank at '4'. PNB's Individual Rating reflects its reasonably strong franchise owing to a long-standing history but also its low profitability and weak balance sheet. While the bank's reported non-performing assets have steadily declined over the years, they still remained substantial at 11.5% of total assets at end-2009, well above the industry average of 3% to 4%. In Fitch's view, these bad assets could be a threat to PNB's solvency position in the event of a difficult environment, although the bank's financial performance turned out to be better than expected despite the recent downturn and such downside risks may gradually ease amid the improved economic climate. Allied Bank's Individual Rating reflects its comparatively healthier balance sheet with a strong capital buffer that mitigates the risks of its concentrated loan book and weak underlying profitability. The agency notes that the bank's financial performance was resilient in 2009 notwithstanding the slowdown, with asset quality having held up fairly well and non- performing loans well-reserved. While the reserve coverage on investment properties (mostly foreclosed properties) was much lower in comparison, any potential impairment impact on Allied Bank's balance sheet is likely to be manageable amid better market conditions. Notably, Allied Bank has a good loss absorption capacity with a core Tier 1 capital adequacy ratio of 15.6% at end-2009 (peer average: about 11%). While Allied Bank has a better risk profile than PNB, the expected share-swap merger of the two banks has a negative financial impact on Allied Bank's profile, though it is expected to be positive for PNB's credit profile. Most importantly, Fitch notes that the financial position of both entities on a combined basis has improved since early-2008 when the merger was formally announced, and likely to improve further on the back of an improving economic environment in the Philippines. Furthermore improvements can also be expected owing to the ongoing rationalization measures since 2006 in anticipation of the merger. The completion of the merger would raise the systemic importance of the enlarged entity in the domestic banking sector, and hence should be positive for Allied Bank's Support Rating of '4'. However, this would be neutral for PNB's Support Rating of '3', which is currently similar to that of its larger peers. PNB and Allied Bank are both controlled by Lucio Tan Group. The plan to merge both banks is still pending regulatory approval, after which LTG will still hold a controlling stake in the enlarged entity. PHILIPPINE NAT'L BANK: Fitch Affirms 'D/E' Individual Rating ------------------------------------------------------------ Fitch Ratings has affirmed the Individual Ratings of Philippine National Bank at 'D/E' and Allied Banking Corporation at 'D'. Concurrently, the agency also affirmed the Support Ratings of PNB at '3' and Allied Bank at '4'. PNB's Individual Rating reflects its reasonably strong franchise owing to a long-standing history but also its low profitability and weak balance sheet. While the bank's reported non-performing assets have steadily declined over the years, they still remained substantial at 11.5% of total assets at end-2009, well above the industry average of 3% to 4%. In Fitch's view, these bad assets could be a threat to PNB's solvency position in the event of a difficult environment, although the bank's financial performance turned out to be better than expected despite the recent downturn and such downside risks may gradually ease amid the improved economic climate. Allied Bank's Individual Rating reflects its comparatively healthier balance sheet with a strong capital buffer that mitigates the risks of its concentrated loan book and weak underlying profitability. The agency notes that the bank's financial performance was resilient in 2009 notwithstanding the slowdown, with asset quality having held up fairly well and non- performing loans well-reserved. While the reserve coverage on investment properties (mostly foreclosed properties) was much lower in comparison, any potential impairment impact on Allied Bank's balance sheet is likely to be manageable amid better market conditions. Notably, Allied Bank has a good loss absorption capacity with a core Tier 1 capital adequacy ratio of 15.6% at end-2009 (peer average: about 11%). While Allied Bank has a better risk profile than PNB, the expected share-swap merger of the two banks has a negative financial impact on Allied Bank's profile, though it is expected to be positive for PNB's credit profile. Most importantly, Fitch notes that the financial position of both entities on a combined basis has improved since early-2008 when the merger was formally announced, and likely to improve further on the back of an improving economic environment in the Philippines. Furthermore improvements can also be expected owing to the ongoing rationalization measures since 2006 in anticipation of the merger. The completion of the merger would raise the systemic importance of the enlarged entity in the domestic banking sector, and hence should be positive for Allied Bank's Support Rating of '4'. However, this would be neutral for PNB's Support Rating of '3', which is currently similar to that of its larger peers. PNB and Allied Bank are both controlled by Lucio Tan Group. The plan to merge both banks is still pending regulatory approval, after which LTG will still hold a controlling stake in the enlarged entity. ================= S I N G A P O R E ================= COMFORT RESOURCES: Court to Hear Wind-Up Petition on August 20 -------------------------------------------------------------- A petition to wind up the operations of Comfort Resources Pte Ltd will be heard before the High Court of Singapore on August 20, 2010, at 10:00 a.m. Alliance Concrete Singapore Pte Ltd filed the petition against the company on July 27, 2010. The Petitioner's solicitors are: Messrs Rajah & Tann Llp 9 Battery Road #15-01 Straits Trading Building Singapore 049910 EAGLE MONEY: Creditors' Proofs of Debt Due August 20 ---------------------------------------------------- Eagle Money Changer Pte Ltd, which is in liquidation, requires its creditors to file their proofs of debt by August 20, 2010, to be included in the company's dividend distribution. The company's liquidator is: Goh Ngiap Suan c/o Goh Ngiap Suan & Co 336 Smith Street #06-308 New Bridge Centre Singapore 050336 ENERGENICS PTE: Court to Hear Wind-Up Petition on Aug. 20 --------------------------------------------------------- A petition to wind up the operations of Energenics Pte Limited will be heard before the High Court of Singapore on August 20, 2010, at 10:00 a.m. Watson, Farley & Williams Llp filed the petition against the company on July 23, 2010. The Petitioner's solicitors are: Drew & Napier LLC 20 Raffles Place #17-00 Ocean Towers Singapore 048620 GESSIT PTE: Creditors' Proofs of Debt Due August 20 --------------------------------------------------- Creditors of Gessit Pte Ltd, which is in liquidation, are required to file their proofs of debt by August 20, 2010, to be included in the company's dividend distribution. The company's liquidator is: Mr. Don M Ho, FCPA c/o Don Ho & Associates Certified Public Accountants Corporate Advisory & Recoveries Equity Plaza 20 Cecil Street #12-02 Singapore 049705 HYPERBARIC: Court to Hear Wind-Up Petition on August 20 ------------------------------------------------------- A petition to wind up the operations of Hyperbaric and Occupational Medicine Pte Ltd will be heard before the High Court of Singapore on August 13, 2010, at 10:00 a.m. Future Link Properties Pte Ltd filed the petition against the company on July 21, 2010. The Petitioner's solicitors are: Messrs SK Legal LLC 1 Tampines Central 5 #08-09, CPF Building Singapore 529508 IPACS TECHNOLOGY: Creditors' Proofs of Debt Due August 27 --------------------------------------------------------- Creditors of Ipacs Technology Pte Ltd, which is in creditors' voluntary liquidation, are required to file their proofs of debt by August 27, 2010, to be included in the company's dividend distribution. The company's liquidators are: Ong Yew Huat Seshadri Rajagopalan c/o One Raffles Quay, North Tower, Level 18 Singapore 048583 IPACS TECHNOLOGY: Creditors' Meetings Set for September 1 --------------------------------------------------------- Ipacs Technology Pte Ltd, which is in creditors' voluntary liquidation, will hold a meeting for its creditors on September 1, 2010, at 11:00 a.m., at Ernst & Young Solutions LLP, One Raffles Quay, North Tower Level 18, Singapore 048583. Agenda of the meeting includes: a. to report and update on the progress of the liquidation; b. to approve the Liquidators? and solicitors? fees; and c. discuss other business. The company's liquidator is: Seshadri Rajagopalan c/o Ernst & Young Solutions LLP One Raffles Quay, North Tower, Level 18, Singapore 048583 MICROMUSE SINGAPORE: Creditors' Proofs of Debt Due September 6 -------------------------------------------------------------- Micromuse Singapore Pte Ltd, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by September 6, 2010, to be included in the company's dividend distribution. The company's liquidators are: Andrew Grimmett Lim Loo Khoon 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 QIMONDA MANUFACTURING: Creditors' Proofs of Debt Due August 23 -------------------------------------------------------------- Creditors of Qimonda Manufacturing Singapore Pte Ltd, which is in creditors' voluntary liquidation, are required to file their proofs of debt by August 23, 2010, to be included in the company's dividend distribution. The company's liquidator is: Neo Ban Chuan Korda Mentha Pte. Ltd. 30 Robinson Road #12-01 Robinson Towers Singapore 048546 SINO-ENVIRONMENT TECHNOLOGY: Creditors' Proofs of Debt Due Aug. 17 ------------------------------------------------------------------ Creditors of Sino-Environment Technology Group Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by August 17, 2010, to be included in the company's dividend distribution. The company's liquidator is: Ms. Ee Meng Yen Angela c/o Ernst & Young LLP One Raffles Quay North Tower, Level 18 Singapore 048583 SINO-ENVIRONMENT TECHNOLOGY: Creditors' First Meeting Set Aug. 18 ----------------------------------------------------------------- Sino-Environment Technology Group Ltd, which is under judicial management, will hold their first meeting for its creditors on August 18, 2010, at 09:30 a.m. The company's judicial manager: Ms. Ee Meng Yen Angela c/o Ernst & Young LLP One Raffles Quay North Tower, Level 18 Singapore 048583 UMCI LTD: Creditors' Proofs of Debt Due September 6 --------------------------------------------------- UMCI Ltd, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by September 6, 2010, to be included in the company's dividend distribution. The company's liquidators are: Andrew Grimmett Lim Loo Khoon 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 VEITH TOOLING: Court Enters Wind-Up Order ----------------------------------------- The High Court of Singapore entered an order on July 23, 2010, to wind up the operations of Veith Tooling Supply Pte Ltd. Wincor Nixdorf Retail& Banking Systems (Shanghai) Co LTD filed the petition against the company. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road, #05-11/#06-11 Singapore 069118 WORLDWIDE INVESTIGATION: Creditors' Proofs of Debt Due September 6 ------------------------------------------------------------------ Creditors of Worldwide Investigation Network Pte Ltd, which is in creditors' voluntary liquidation, are required to file their proofs of debt by September 6, 2010, to be included in the company's dividend distribution. The company's liquidator is: Victor Goh C/o Insolvency Advisory Pte Ltd 100 Tras Street #16-03 Amara Corporate Tower Singapore 079027 =========== T A I W A N =========== NANYA TECHNOLOGY: Sales Decline 2.5% to NT$5.1 Billion in July -------------------------------------------------------------- Nanya Technology Corp. posted a second consecutive decline in sales as prices dropped on sagging demand last month, the Taipei Times reports. Sales fell 2.5% last month to NT$5.1 billion, compared with NT$5.23 billion in June. On a year-on-year base, sales jumped 55% from NT$3.3 billion. Shipments were flat last month from June. Nanya Technology spokesman Pai Pei-lin said it expected growth momentum "to be back on track in August," helped by back-to-school demand for PCs and corporations' need to replace older PCs. About Nanya Technology Based in Taiwan, Nanya Technology Corp. (TPE:2408) -- http://www.nanya.com/-- is principally engaged in the manufacture, development and sale of memory products. The company primarily offers dynamic random access memory (DRAM) chips, including double data rate (DDR) DRAM chips, DDR2 DRAM chips and DDR3 DRAM chips; DRAM modules, such as 200-pin DDR small outline (SO) dual in-line memory modules (DIMMs), 184-pin registered and unbuffered DDR synchronous dynamic random access memory (SDRAM) DIMMs, 200-pin DDR2 SODIMMs, 240-pin unbuffered and registered DDR2 SDRAM DIMMs and others. DRAMs are used as data storage units for computer, communications and consumer (3C) products. Nanya Technology posted a net loss of NT$35.23 billion, or NT$7.54 per diluted share, for the 2008 fiscal year, compared with a net loss of NT$12.46 billion in the prior year. In the fiscal year of 2009, the company posted unaudited sales revenue of NT$42.456 billion with an operating loss of NT$16.076 billion and a net loss of NT$20.74 billion. ============= V I E T N A M ============= VIETNAM SHIPBUILDING: Government Plans to Restructure Firm ----------------------------------------------------------- Vietnam's government aims to "wholly restructure" Vietnam Shipbuilding Industry Group to help the state-owned company stabilize and repay its debt, Bloomberg News reports. Bloomberg relates Deputy Prime Minister Nguyen Sinh Hung said at a press conference in Hanoi that Vinashin, as the shipbuilder is known, needs to narrow its business lines and focus on its main shipbuilding and maintenance operations. According to Bloomberg, Minister Nguyen forecasts that the state-controlled company will post losses through 2012 before turning to a profit in the following two years. As of June this year, the company "was facing the risk of going into bankruptcy, with production stagnating and almost 17,000 people leaving the company," according to a statement obtained by Bloomberg. The government asked the company to focus on completing projects after orders valued at about $700 million this year were under threat of cancellation, the statement said. Vinashin's total assets were VND104 trillion ($5.45 billion) while total debt was VND86 trillion as of June. As reported in the Troubled Company Reporter-Asia Pacific on July 16, 2010, Vietnam's Prime Minister Nguyen Tan Dung decided to suspend Phan Thanh Binh from his Chairmanship of Vinashin as the government started an investigation into financial dilemma of the state-owned company. According to a statement on the government's Web site on July 14, Minister-Chairman of the Office of Government Nguyen Xuan Phuc said Prime Minister Nguyen Tan Dung ordered to investigate responsibilities and detect faults of Mr. Binh when he carried out the assigned tasks. Deputy Minister of Transport Nguyen Hong Truong was appointed to replace Mr. Binh as the Chairman of Vinashin. Vinashin doesn't have enough funds for some projects after its customers and lenders were hit by the global recession that started in 2008. The company also over-diversified its business activities and hasn't managed its cash flow and debt. Vietnam Shipbuilding Industry Group is a state-owned shipbuilding company. ********* 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 ***