/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100819.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, August 19, 2010, Vol. 13, No. 163 Headlines H O N G K O N G ALLIED MASTER: Court Enters Wind-Up Order AMAX WORLD: Court to Hear Wind-Up Petition on September 29 BEST PALACE: Members' Final Meeting Set for September 3 CABEN LIMITED: Members' Final Meeting Set for September 13 CHELTON FINANCE: Li and Tsang Appointed as Liquidators CHEUNG FUNG: Creditors' Meetings Set for August 26 CREATIVE ENERGY: Chiong and Sutton Step Down as Liquidators CROWN INDUSTRIA: Commences Wind-Up Proceedings DIAMOND TERM: Creditors Get 2.2% Recovery on Claims ELI LILLY: Ying and Chan Step Down as Liquidators EVERTOP FORTUNE: Court to Hear Wind-Up Petition on October 6 EVERWAY ENTERPRISE: Court to Hear Wind-Up Petition on September 9 EVERWELL ELECTRONIC: Arboit and Blade Appointed as Liquidators FAR HERO: Members' Final Meeting Set for September 13 GALLERIA (HONGKONG): Borrelli and Walsh Appointed as Liquidators GEZHOUBA GROUP: Members' Final Meeting Set for September 3 GUANGDONG (H.K.): Members' and Creditors Meetings Set for Sept. 1 GUANGDONG LI: Court Enters Wind-Up Order HARVEST MEDIA: Court Enters Wind-Up Order HK 365: Court Enters Wind-Up Order HIH HOLDINGS: Creditors' Proofs of Debt Due September 2 I N D I A BEST & CROMPTON: CRISIL Assigns 'B+' Rating to INR950MM LT Loan HI-TECH CONSTRUCTION: CRISIL Reaffirms 'BB' Rating on Bank Debts K. K. COTEX: CRISIL Assigns 'B' Rating to INR130MM Cash Credit LONDON STAR: CRISIL Assigns 'P4+' Rating to INR380MM Bank Debts MAHABIR TECHNO: CRISIL Assigns 'B+' Rating to INR130MM Cash Credit MAHAVIR DAL: CRISIL Reaffirms 'BB+' Rating on INR9.0MM Term Loan MANISH FLOUR: CRISIL Assigns 'B+' Rating on INR71.5 Mil. LT Loan POJ HOTELS: CRISIL Reaffirms 'B+' Rating on INR100 Mil. LT Loan PRABHAT ELASTOMERS: CRISIL Lifts Ratings on Various Debts to 'B-' SAVAIR ENERGY: CRISIL Assigns 'BB' Rating to INR26 Mil. Term Loan SHYAM TIMBER: ICRA Assigns 'LBB-' Rating to Various Bank Debts SHREEJI POWER: CRISIL Downgrades Rating on INR160MM Loan to 'D' SPA CERAMIC: ICRA Assigns 'LBB-' Rating to INR4.14cr Term Loan STAR AGRO: ICRA Reaffirms 'LBB' Rating on INR27.7MM Term Loans SWARNA SARITA: CRISIL Assigns 'BB' Rating to INR100MM Cash Credit I N D O N E S I A INTERNATIONAL NICKEL: S&P Withdraws 'BB-' Corporate Credit Rating J A P A N ALL NIPPON: Aims to Boost Profit From Higher Frequent Flier Member K O R E A SSANGYONG MOTOR: Net Loss Narrows to KRW21.54 Bil. in Second Qtr M A L A Y S I A KENMARK INDUSTRIAL: Receives Letter of Demand from EON Bank LIMAHSOON BERHAD: Unit Receives Summons After Payment Default MALAYSIAN MERCHANT: Ordered to Sell MT Ashton Vessel to Pay Debts NAM FATT: Defaults on MYR52.51 Million Bank Facilities TRANSMILE GROUP: CCM Strikes-Off Indonesian Unit From Register N E W Z E A L A N D REYNOLDS GROUP: S&P Puts 'B+' Rating on CreditWatch Negative P A K I S T A N PAKISTAN MOBILINK: Moody's Reviews 'B2' Corporate Family Rating - - - - - ================ H O N G K O N G ================ ALLIED MASTER: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on July 2, 2010, to wind up the operations of Allied Master Investment Limited. The company's liquidator is: Mat Ng John Lees Associates 20/F Henley Building 5 Queen's Road Central, Hong Kong AMAX WORLD: Court to Hear Wind-Up Petition on September 29 ---------------------------------------------------------- A petition to wind up the operations of Amax World Limited will be heard before the High Court of Hong Kong on September 29, 2010, at 9:30 a.m. Mok Sai Ngan filed the petition against the company on July 26, 2010. BEST PALACE: Members' Final Meeting Set for September 3 ------------------------------------------------------- Members of Best Palace Limited will hold their final meeting on September 3, 2010, at 11:00 a.m., at Flat 9, 12/F, Deca Industrial Centre, 12 Kut Shing Street, Chaiwan, in Hong Kong. At the meeting, Tsang Chung Ying, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CABEN LIMITED: Members' Final Meeting Set for September 13 ---------------------------------------------------------- Members of Caben Limited will hold their final general meeting on September 13, 2010, at 11:00 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. CHELTON FINANCE: Li and Tsang Appointed as Liquidators ------------------------------------------------------ Li Man Wai and Tsang Lai Fun on August 5, 2010, were appointed as liquidators of Chelton Finance Limited. The liquidators may be reached at: Li Man Wai Tsang Lai Fun c/o Raymond Li & Co., CPA Room 1001, 10th Floor Tai Yau Building Wanchai, Hong Kong CHEUNG FUNG: Creditors' Meetings Set for August 26 -------------------------------------------------- Creditors of Cheung Fung Technology (Holdings) Limited will hold their meeting on August 26, 2010, at 3:00 p.m., at 6th Foor, Sunning Plaza, 10 Hysan Avenue, Causeway Bay, in Hong Kong. At the meeting, Wong Kwok Man and Alan C W Tang, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. CREATIVE ENERGY: Chiong and Sutton Step Down as Liquidators ----------------------------------------------------------- Mr. Desmond Chung Seng Chiong and Mr. Roderick John Sutton stepped down as liquidators of Creative Energy Solutions Holdings Limited on July 29, 2010. CROWN INDUSTRIA: Commences Wind-Up Proceedings ---------------------------------------------- Members of Crown Industrial Resources Limited, on August 2, 2010, passed a resolution to voluntarily wind-up the company's operations. The company's liquidator is: Guan Haishan Rooms 1801-05 Hua Qin International Building 340 Queen's Road Central, Hong Kong DIAMOND TERM: Creditors Get 2.2% Recovery on Claims --------------------------------------------------- Diamond Term Limited, which is in liquidation, declared the first and final ordinary dividend to its creditors on August 13, 2010. The company paid 2.2% for ordinary claims. The company's liquidators are: John Robert Lees c/o John Lees Associates 20/F Henley Building 5 Queen's Road Central, Hong Kong ELI LILLY: Ying and Chan Step Down as Liquidators ------------------------------------------------- Ying Hing Chiu and Chan Mi Har stepped down as liquidators Eli Lilly Funding Limited on August 10, 2010. EVERTOP FORTUNE: Court to Hear Wind-Up Petition on October 6 ------------------------------------------------------------ A petition to wind up the operations of Evertop Fortune Limited will be heard before the High Court of Hong Kong on October 6, 2010, at 9:30 a.m. Ho Chi Yung filed the petition against the company on August 2, 2010. The Petitioner's solicitors are: Boase Cohen & Collins 2303-7 Dominion Centre 43-59 Queen's Road East Hong Kong EVERWAY ENTERPRISE: Court to Hear Wind-Up Petition on September 9 ----------------------------------------------------------------- A petition to wind up the operations of Everway Enterprise (HK) Limited will be heard before the High Court of Hong Kong on September 9, 2010, at 9:30 a.m. Quitsubdue Limited filed the petition against the company on July 28, 2010. The Petitioner's solicitors are: Ford, Kwan & Company Suite 3304, 33rd Floor, Tower 2 Nina Tower, No. 8 Yeung Uk Road Tsuen Wan, New Territories EVERWELL ELECTRONIC: Arboit and Blade Appointed as Liquidators -------------------------------------------------------------- Bruno Arboit and Simon Richard Blade on June 21, 2010, were appointed as liquidators of Everwell Electronic Products Limited. The liquidators may be reached at: Bruno Arboit Simon Richard Blade 1008 Shui On Centre 6-8 Harbour Road Wanchai, Hong Kong FAR HERO: Members' Final Meeting Set for September 13 ----------------------------------------------------- Members of Far Hero Limited will hold their final general meeting on September 13, 2010, at 10:00 a.m., at Unit 1602, 16/F, Malaysia Building, 50 Gloucester Road, Wanchai, in Hong Kong. At the meeting, Ching Eng Chin, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GALLERIA (HONGKONG): Borrelli and Walsh Appointed as Liquidators ---------------------------------------------------------------- Cosimo Borrelli and G Jacqueline Fangonil Walsh on July 23, 2010, were appointed as liquidators of Galleria (Hongkong), Limited. The liquidators may be reached at: Cosimo Borrelli G Jacqueline Fangonil Walsh Level 17, Tower 1 Admiralty Centre 18 Harcourt Road Hong Kong GEZHOUBA GROUP: Members' Final Meeting Set for September 3 ---------------------------------------------------------- Members of Gezhouba Group (Hong Kong) Co., Limited will hold their final general meeting on September 14, 2010, at 11:00 a.m. At the meeting, Choi Yuet Wah, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GUANGDONG (H.K.): Members' and Creditors Meetings Set for Sept. 1 ----------------------------------------------------------------- Creditors and members of Guangdong (H.K.) Tours Company Limited will hold their annual meetings on September 1, 2010, at 11:00 a.m., and 11:30 a.m., respectively at 5th Floor, Ho Lee Commercial Building, 38-44 D'Aguilar Street, Central, in Hong Kong. At the meeting, Kennic Lai Hang Lui and Ruby Mun Yee Leung, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. GUANGDONG LI: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on August 4, 2010, to wind up the operations of Guangdong Li Feng Food Limited. The official receiver is E T O'Connell. HARVEST MEDIA: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on August 4, 2010, to wind up the operations of Harvest Media Limited. The official receiver is E T O'Connell. HK 365: Court Enters Wind-Up Order ---------------------------------- The High Court of Hong Kong entered an order on August 4, 2010, to wind up the operations of Hong Kong 365 Internet Exhibition Co., Limited. The official receiver is E T O'Connell. HIH HOLDINGS: Creditors' Proofs of Debt Due September 2 ------------------------------------------------------- Creditors of HIH Holdings (Asia) Limited, which is in liquidation, are required to file their proofs of debt by September 2, 2010, to be included in the company's dividend distribution. The company's liquidators are: Jan G W Blaauw Rainier HC Lam c/o PricewaterhouseCoopers 20/F, Prince's Building Central, Hong Kong ========= I N D I A ========= BEST & CROMPTON: CRISIL Assigns 'B+' Rating to INR950MM LT Loan --------------------------------------------------------------- CRISIL has assigned its 'B+/Stable' rating to Best & Crompton Textiles Ltd's proposed bank facility. Facilities Ratings ---------- ------- INR950.00 Million Proposed LT Loan B+/Stable (Assigned) The rating reflects BCTL's exposure to risks related to its ongoing project and limited pricing flexibility in the texturising industry. These rating weaknesses are partially offset by the healthy demand prospects for polyester filament yarn (PFY) and polyester-based products, and the support BCTL receives from its parent, Best & Crompton Engineering Ltd. Outlook: Stable CRISIL believes that BCTL will maintain a stable credit risk profile over the medium term, backed by support from the parent company and robust demand for polyesters over the medium term. The outlook may be revised to 'Positive' if BCTL completes its ongoing project within scheduled time and cost, and stabilises operations after completion of the project, generating better-than-expected margins. Conversely, the outlook may be revised to 'Negative' in case of significant time and cost overruns in BCTL's project. About Best & Crompton BCTL is a subsidiary of BCEL. BCTL was incorporated in June 2010 and has its head office in Chennai (Tamil Nadu). BCTL is setting up a yarn-dyeing and fabric-manufacturing facility in Nagari (Andhra Pradesh). The product category includes dyed yarn and apparel for sportswear and performance wear. The proposed capacity is 5400 tonnes per annum of dyed yarn and 14.4 million yards per annum of fabric. The company is currently in the process of acquiring nearly 100 acres of land for setting up the facility. The operations are expected to commence from September 2011. BCEL, which has 90 per cent stake in BCTL, is more than 100 years old. Best & Co was founded in 1879 as a partnership firm in Chennai. After a series of amalgamation and acquisitions, the company was renamed as Best & Crompton Engineering Ltd in 1975. BCEL is currently in the business of industrial pumps and foundry. HI-TECH CONSTRUCTION: CRISIL Reaffirms 'BB' Rating on Bank Debts ---------------------------------------------------------------- CRISIL has reaffirmed its ratings of 'BB/Stable/P4+' on Hi-Tech Construction's bank facilities. Facilities Ratings ---------- ------- INR60 Million Cash Credit Limits BB/Stable (Reaffirmed) INR100 Million Bank Guarantee P4+ (Reaffirmed) The ratings continue to reflect Hi-Tech Construction's small scale of operations in the civil construction industry, low net worth, and exposure to risks relating to geographical and customer concentration in its revenue profile. These weaknesses are partially offset by healthy growth in the firm's revenues, supported by a comfortable order book. Outlook: Stable CRISIL believes that Hi-Tech Construction will benefit from the growth prospects in the civil construction industry, although the firm may remain exposed to risks of revenue concentration in a single state, Assam. The outlook may be revised to 'Positive' if Hi-Tech Construction strengthens its business risk profile by improving the diversity in its revenue profile, while maintaining its operating margins. Conversely, the outlook may be revised to 'Negative' if Hi-Tech Construction undertakes additional, debt- funded capital expenditure, leading to deterioration in its financial risk profile. Update Hi-Tech Construction reported an estimated healthy growth in revenues, reflected in a 58% growth in topline in 2009-10 (refers to financial year, April 1 to March 31) over the previous year. However, the operating profitability has remained stable at the 2008-09 levels. The estimated gearing was healthy at 0.81 times as on March 31, 2010. The liquidity is stretched, as indicated by the fact that the firm's bank limits have had a high utilization of 96 per cent on average during the 12 months through March 2010, owing to working capital intensity in operations and stretched receivables. The company does not have any major capex plans for the medium term. The gearing is therefore, unlikely to exceed 1 time over the same term. The company derives comfortable revenue visibility from its unexecuted order book of INR1100 million as on June 30, 2010. About Hi-Tech Construction Set up in 1993 as a partnership firm by Mr. Bijoy Jain, Mr. Subhash Jain, Mr. Mahabir Jain, Mrs. Premlata Jain, and Mrs. Sunita Jain, Hi-Tech Construction undertakes civil construction activities including road construction, building construction, and bridge construction in Assam. Hi-Tech Construction reported a profit after tax (PAT) of INR32 million on net sales of INR588 million for 2008-09, as against a PAT of INR21 million on net sales of INR533 million for 2007-08. K. K. COTEX: CRISIL Assigns 'B' Rating to INR130MM Cash Credit -------------------------------------------------------------- CRISIL has assigned its 'B/Stable' rating to K. K. Cotex's cash credit facility. Facilities Ratings ---------- ------- INR130.0 Million Cash Credit Facility B/Stable (Assigned) The rating reflects KK's weak financial risk profile, marked by a small net worth, high gearing, and weak debt protection metrics; and susceptibility to adverse regulatory changes. These rating weaknesses are partially offset by the experience of KK's promoters in the cotton industry. Outlook: Stable CRISIL believes that KK will, over the medium term, continue to benefit from its promoters' experience in the cotton ginning industry. The outlook may be revised to 'Positive' in case of significant improvement in the firm's accruals, or infusion of equity leading to improvement in its capital structure and financial risk profile. Conversely, the outlook may be revised to 'Negative' in case KK reports a lower-than-expected operating margin, causing deterioration in cash accruals, or it undertakes a large, debt-funded capital expenditure programme, adversely impacting its debt protection metrics over the medium term. About K. K. Cotex Incorporated in 2007 by Mr. Kishore Bhai Patel, KK undertakes cotton ginning and pressing activities in Gondal (Gujarat). The firm commenced commercial production in January 2008. It has a capacity to manufacture 550 cotton bales per day and is presently operating at about 50 per cent utilization. KK is expected to report a book profit of INR1.2 million on net sales of INR 721.5 million for 2009-10 (refers to financial year, April 1 to March 31), against a book profit of INR1.8 million on net sales of INR640.8 million for 2008-09. LONDON STAR: CRISIL Assigns 'P4+' Rating to INR380MM Bank Debts --------------------------------------------------------------- CRISIL has assigned its 'P4+' rating to London Star Diamond Company (India) Pvt Ltd's post shipment credit facility. Facilities Ratings ---------- ------- INR380.0 Million Post Shipment Credit P4+ (Assigned) The rating reflects London Star's weak financial risk profile, marked by small net worth and weak debt protection metrics, and expected pressure on its revenues and profitability because of slower-than-expected recovery in its key markets. These rating weaknesses are partially offset by the experience of London Star's promoters in the diamond business. London Star, incorporated in 1964 by the late Mr. S G Jhaveri, trades in polished diamonds. London Star was originally set up as a 50:50 joint venture between the Jhaveri family of Mumbai and Star Diamond Plc, UK, to manufacture polished diamonds. However, the company changed its business focus to trading from manufacturing in 1998. London Star mainly trades in cut and polished diamonds. It has a manufacturing facility in Mumbai, and the scale of manufacturing operations is small. The Jhaveri family owns the majority of the company's equity. The company is managed by Mr. Kamlesh Jhaveri (son of Mr. S G Jhaveri), Mr. Rishabh Jhaveri, and Mr. Chirag Shah. London Star reported, on a provisional basis, a profit after tax (PAT) of INR1.6 million on net sales of INR1373.0 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR2.0 million on net sales of INR1276.0 million for 2008- 09. MAHABIR TECHNO: CRISIL Assigns 'B+' Rating to INR130MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its 'B+/Stable/P4' ratings to Mahabir Techno Ltd's bank facilities. Facilities Ratings ---------- ------- INR130.0 Million Cash Credit B+/Stable (Assigned) INR20.0 Million Letter of Credit P4 (Assigned) The ratings reflect MTL's small scale of operations; below-average financial risk profile, marked by high gearing, small net worth, and weak debt protection metrics; large working capital requirements; and exposure to risks related to intense competition in the edible oil and by-products industry. These rating weaknesses are partially offset by MTL's established market position and industry experience of its promoters. Outlook: Stable CRISIL expects MTL's financial risk profile to remain constrained because of high gearing and weak debt protection metrics, and its scale of operations to remain small, over the medium term. The outlook may be revised to 'Positive' in case of substantial improvement in the company's financial risk profile, most likely because of increase in accruals and better working capital management. Conversely, the outlook may be revised to 'Negative' in case of further deterioration in MTL's liquidity arising from large incremental working capital requirements, or in case of larger-than-expected debt-funded capital expenditure (capex). About Mahabir Techno Set up by the Khurana family of Kurukshetra (Haryana), MTL undertakes refining of palm oil, rice-bran oil, sunflower oil, and other oils. The refining operations commenced in a partnership firm, Mahabir Techno, in 1996, which was acquired by MTL in 2003. The company has a total manufacturing capacity of 113 tonnes per day of refined oils. It also owns a solvent-extraction plant for manufacturing rice bran oil. The plant, however, is currently not operational as the oil produced by this plant has a relatively higher colour and free fatty acid (FFA) content, which is not desirable. The company has a INR12.5-million capex plan for upgrading its plant; the same is expected to be completed by the end of 2010-11 (refers to financial year, April 1 to March 31). MTL reported a profit after tax (PAT) of INR2.3 million on net sales of INR657.9 million for 2009-10, against a net loss of INR1.3 million on net sales of INR553.9 million for 2008-09. MAHAVIR DAL: CRISIL Reaffirms 'BB+' Rating on INR9.0MM Term Loan ---------------------------------------------------------------- CRISIL's rating on the bank facilities of Mahavir Dal Mills Pvt Ltd continues to reflect MDM's large working capital requirements and small scale of operations. These weaknesses are partially offset by MDM's healthy financial risk profile, marked by low gearing. Facilities Ratings ---------- ------- INR47.0 Million Cash Credit Limit BB+/Stable (Reaffirmed) INR9.0 Million Term Loan BB+/Stable (Reaffirmed) INR59.0 Million Proposed BB+/Stable (Reaffirmed) Long-Term Bank Loan Facility Outlook: Stable CRISIL believes that MDM will sustain its business risk profile over the medium term, backed by its stable profit margins and the healthy demand prospects for the food industry. The outlook may be revised to 'Positive' in case the company increases its scale of operations by enhancing its geographical diversification, and/or by achieving a more-than-expected improvement in its operating income. Conversely, the outlook may be revised to 'Negative' if MDM's profitability declines, or its debt protection measures deteriorate because of larger-than-expected debt-funded capital expenditure. Update MDM's estimated operating income for 2009-10 (refers to financial year, April 1 to March 31) was in line with CRISIL's projections. The company's estimated operating profitability for the year, at 2 per cent, is 2 percentage points lower than CRISIL's earlier expectations due to the constant decline in the market prices of masoor dal (lentils) in the last quarter of 2009-10. The company's operating profitability is estimated to be in the range of 2 per cent over the near to medium term. MDM's working capital limits have been enhanced to INR70.0 million in March 2010, from INR47.0 million. The company continues to fully utilise its working capital limits for the procurement of masoor dal. It had plans for setting up a manufacturing facility at Kolkatta, but now the management intends to go slow on investments in the project. MDM had an estimated gearing of 2.24 times as on March 31, 2010, which is higher than CRISIL's initial expectations. About Mahavir Dal MDM, promoted by Mr. Mukesh Kumar Agarwal in 2005, is into processing of pulses (mainly masoor dal). The company's processing unit, located in Kanpur (Uttar Pradesh), comprises two sorting machines (for removing impurities on the basis of colour) that were installed in 2008-09. MDM reported a profit after tax (PAT) of INR4 million on net sales of INR311 million for 2008-09, against a PAT of INR2 million on net sales of INR258 million for 2007-08. MANISH FLOUR: CRISIL Assigns 'B+' Rating on INR71.5 Mil. LT Loan ---------------------------------------------------------------- CRISIL has assigned its 'B+/Stable' rating to Manish Flour Mills Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR71.5 Million Long-Term Loan B+/Stable (Assigned) INR50.0 Million Cash Credit B+/Stable (Assigned) The rating reflects MFM's weak financial risk profile, marked by a small net worth, high gearing, and moderate debt protection metrics, and limited track record in the agricultural commodities industry. These rating weaknesses are partially offset by MFM's promoter's experience in the milling business, and its superior milling facilities. Outlook: Stable CRISIL believes that MFM will generate healthy revenue growth over the medium term, backed by stabilization of operations at its production units and growing domestic demand for wheat flour and other wheat-based products. The outlook may be revised to 'Positive' if MFM's financial risk profile, particularly capital structure, improves, most likely because of successful stabilization of operations at its newly established manufacturing capacities. Conversely the outlook may be revised to 'Negative' if MFM's debt servicing ability weakens, most likely because of less- than-expected revenue realization or more-than-expected delay in stabilization of operations. About Manish Flour MFM set up in 2007, commenced commercial operations on February 15, 2010. The company is promoted by Mr. Manish Jain. MFM has a wheat flour mill with an installed capacity of 350 tonnes per day (tpd) which produces products such as maida, rawa, bran and germ. The company also has a chakki with an installed capacity of 100 tpd which manufactures only atta from wheat. POJ HOTELS: CRISIL Reaffirms 'B+' Rating on INR100 Mil. LT Loan --------------------------------------------------------------- CRISIL's rating on bank facilities of POJ Hotels Pvt Ltd reflects POJ's exposure to risks related to stabilization and low occupancy levels of its hotel during the initial period of operations. These rating weaknesses are partially offset by POJ's good business prospects for its three-star hotel. Facilities Ratings ---------- ------- INR100.00 Million Long Term Loan B+/Stable (Reaffirmed) INR13.20 Million Cash Credit B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that POJ's liquidity position will continue to be strained over the near term due to early stage of operation and therefore its debt repayment ability will also remain constrained during the same period. The outlook may be revised to 'Positive' if the company stabilises the hotel's operations, resulting in improved liquidity. Conversely, the outlook may be revised to 'Negative' if the occupancy rate at POJ's hotel remains low, leading to insufficient cash accruals for the repayment of debt. About POJ Hotels Incorporated in 2005 by Mr. Gorla Sundaraiah and Mr. Gorla Jayaprakash, POJ Hotels runs an upscale, full-service, three-star hotel at Nellore (Andhra Pradesh). The property features 104 rooms, two presidential suites, two restaurants, a spa and a gymnasium, and one presidential suite. The hotel is aimed at customers from the business segment in and around Nellore, such as Krishnapatnam Port Ltd, and upcoming projects, such as the GVK Krishnapatnam Power Project and International Leather Park, amongst others. The promoters are in the business of civil construction and irrigation works. POJ Hotels will be managed and operated by POJ Hotels' management, and Mr. Balaram Reddy, an experienced person in the hotel industry. The hotel commenced operations in April 2010. PRABHAT ELASTOMERS: CRISIL Lifts Ratings on Various Debts to 'B-' ----------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of Prabhat Elastomers Pvt Ltd to 'B-/Stable/P4' from 'D/P5'. Facilities Ratings ---------- ------- INR54.0 Million Term Loan B-/Stable (Upgraded from 'D') INR201.0 Million Proposed LT Facility B-/Stable (Upgraded from 'D') INR120.0 Million Cash Credit* B-/Stable (Upgraded from 'D') INR60.0 Million Letter of Credit P4 (Upgraded from 'P5') INR5.0 Million Bank Guarantee P4 (Upgraded from 'P5') The rating upgrade follows PEPL's timely servicing of its debt over the past seven months, backed by infusion of funds by the promoters in the form of unsecured loans, and realization of export receivables. The upgrade also reflects CRISIL's belief that PEPL will continue to service its debt in a timely manner over the medium term, backed by support from its promoters and improvement in its sales offtake. The revised ratings reflect PEPL's weak financial risk profile, marked by high gearing and weak debt protection metrics, and working-capital-intensive operations. These rating weaknesses are partially offset by PEPL's established presence in the synthetic rubber gaskets segment, supported by its longstanding customer relationships, well-diversified product portfolio, and in-house research and development team. Outlook: Stable CRISIL believes that PEPL will continue to benefit from its established market position and the improvement in demand from the local and export markets. The outlook may be revised to 'Positive' if PEPL's profitability improves significantly, resulting in better liquidity, and the company continues to meet its debt obligations in a timely manner. Conversely, the outlook may be revised to 'Negative' if PEPL's cash accruals decline. About Prabhat Elastomers Incorporated in 1994, PEPL was set up by Mr. Harsukhlal Dhruv and his family. The company manufactures a variety of synthetic rubber gaskets for use in pipes for the water works industry, sewerage pipes, and fire protection and sprinkler water systems. The company's manufacturing facility at Sarigam (Gujarat) has the capacity to manufacture more than 20 million gaskets per annum. PEPL derived 40 per cent of its revenues from exports in 2009-10 (refers to financial year, April 1 to March 31). It also caters to large domestic customers such as Jindal Saw Ltd. PEPL recorded a net loss of INR11.7 million on net sales of INR211 million in 2009-10, as against a profit after tax of INR2.7 million on net sales of INR291 million in 2008-09. SAVAIR ENERGY: CRISIL Assigns 'BB' Rating to INR26 Mil. Term Loan ----------------------------------------------------------------- CRISIL has assigned its 'BB/Stable/P4+' ratings to Savair Energy Ltd's bank facilities. Facilities Ratings ---------- ------- INR55.0 Million Cash Credit BB/Stable (Assigned) INR26.0 Million Term Loan BB/Stable (Assigned) INR259.0 Million Proposed LT BB/Stable (Assigned) Bank Loan Facilities INR140.0 Million Bank Guarantee P4+ (Assigned) INR10.0 Million Letter of Credit P4+ (Assigned) The ratings reflect Savair's average financial risk profile, marked by a weak capital structure. These rating weaknesses are partially offset by the benefits that Savair derives from the experience of its promoter in the engineering, procurement and commissioning (EPC) industry and its established customer base. Outlook: Stable CRISIL believes that Savair will continue to benefit from its technological expertise and established relationships with customers, over the medium term. The outlook may be revised to 'Positive' if Savair's liquidity and receivables improve substantially, or if more-than-expected revenues and steady operating margins lead to large net cash accruals and robust debt protection metrics. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile further deteriorates or the company takes on large debt-funded capital expenditure programme, weakening its debt protection metrics. About Savair Energy Savair, incorporated in 2001 by Mr. Saji Antony (a first generation entrepreneur), is an EPC company, providing turnkey solutions in compressed air systems, chilling plants, fire- fighting systems, oil and gas storage and distribution systems, and water-treatment plants. The company also conducts energy audits and provides consulting services in engineering. Its customers include Reliance Industries Ltd (Rated AAA/Stable/P1+ by CRISIL), Oil and Natural Gas Corporation Ltd (Rated AAA/Stable/P1+ by CRISIL), and Bhabha Atomic Research Centre. It has a manufacturing facility in Ambernath, near Mumbai (Maharashtra). Savair reported a profit after tax (PAT) of INR11.5 million on net sales of INR270.6 million for 2009-10 (refers to financial year, April 1 to March 31) against a PAT of INR9.8 million on net sales of INR283.5 million for 2008-09. SHYAM TIMBER: ICRA Assigns 'LBB-' Rating to Various Bank Debts -------------------------------------------------------------- ICRA has assigned an 'LBB-' rating to the INR2.0 crores cash credit facility of Shyam Timber Private Limited. The outlook for the rating is stable. The Cash credit forms the sublimit of INR12.50 crores, short-term, non-fund based limits which has been assigned an 'A4' rating by ICRA. The ratings are constrained by STPL's relatively modest size of operations; weak debt coverage indicators, its feeble profitability due to trading nature of operations; exposure to volatility in timber prices; and uncertain regulatory environment in Africa which could affect the supply of timber for STPL. The ratings also factor in the highly competitive business environment on account of a fragmented industry structure and the commoditized nature of STPL's product due to limited value addition, which result in price-based competition. The company is also exposed to fluctuation in exchange rates due to inevitable timing difference between procurement of timber which is in foreign currency as against sales which is mostly after receipt of material and is in domestic currency. The ratings, however, favorably factors in long experience of the promoters in the timber trading business, established relationship with timber suppliers, well diversified client base, moderate capital structure and healthy demand outlook for teakwood in the country. About Shyam Timber Shyam Timber Private Limited was incorporated in March 2002 by Mr. Praveen Jethwa along with his brother Mr. Sunil Jethwa. STPL is engaged in the timber trading business where in it imports teakwood from African countries and sells it to saw mills in India. The company's works is located at Gandhidham of Kutch District (Gujarat), near to the Kandla port. STPL setup a branch in Mumbai in FY 08 for importing timber at Nhava Sheva port in order to improve its cost competitiveness in terms of lower inland freight cost for its south based customers. SHREEJI POWER: CRISIL Downgrades Rating on INR160MM Loan to 'D' --------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Shreeji Power and Insulators Pvt Ltd to 'D/P5' from 'B- /Negative/P4' because of delays by SPIPL in servicing its debt obligations; the delays have been caused by SPIPL's weak cash generation ability. Facilities Ratings ---------- ------- INR160 Million Long-Term Loan D (Downgraded from 'B- /Negative') INR80 Million Cash Credit Facility D (Downgraded from 'B- /Negative') INR50 Million Bank Guarantee/Letter P5 (Downgraded from of Credit 'P4') SPIPL has had low capacity utilization on account of delays in getting technical approvals from state transmission companies; this has adversely affected its cash generation ability, resulting in weak debt protection measures. SPIPL was promoted in 2007 by the Kiran group which has interests in transportation, warehousing, and shipping. SPIPL has set up a new facility at Gandhidham (Gujarat) for the manufacture of disc- type electrical insulators. The plant, which has a manufacturing capacity of 5600 tonnes per annum, started trial runs in September 2009 and began commercial operations from February 2010. The company has bid for tenders of about INR350 million as on date. However, it is yet to receive technical clearance from state transmission companies. SPA CERAMIC: ICRA Assigns 'LBB-' Rating to INR4.14cr Term Loan -------------------------------------------------------------- ICRA has assigned an 'LBB-' rating to the INR4.14 crore term loans and INR1.00 crore cash credit facility of Spa Ceramic Private Limited. The outlook for the rating is stable. ICRA has also assigned an A4 rating to the INR0.55 crore, short-term, non-fund based, bank guarantee limits of SCPL. The ratings are constrained by the limited track record of the company, modest size of operations in relation to other larger organized ceramic tile manufacturers, highly competitive nature of the ceramic tile industry resulting from large established tile manufacturers and unorganized players as well as import threat from China. The ratings also take into account SCPL's relatively lower brand visibility compared to other large organized players as well as 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 have favorably considered the experience of one of the promoters in the ceramic industry and the positive demand outlook for ceramic tiles in India due to the steady revival of the real estate sector. About Spa Ceramics Spa Ceramics Pvt. Ltd. is engaged in the business of manufacturing ceramic wall glazed tiles. The company was incorporated in November 2009. It has its manufacturing facility located at Morbi, Gujarat with reported manufacturing capacity of 18000 MTPA. SCPL started its trial production for sampling purposes in July 2010. The company currently has the capability to manufacture wall tiles of sizes 12"x12", 12"x24", 16"x12", 8"x12" and 8"x24" with the current set of machineries. It has established "Spa" and "Sparkle" as the brands for selling its products in the markets. STAR AGRO: ICRA Reaffirms 'LBB' Rating on INR27.7MM Term Loans -------------------------------------------------------------- ICRA has reaffirmed 'LBB' rating to the fund based facilities of INR27.7 million term loans and the INR17.3 million Loans against Deposits (LAD) of Star Agro Marine Exports Private Limited. The outlook on the rating is Stable. ICRA has also reaffirmed A4 rating to the non-fund based facilities of INR130.0 million of letters of credit and the fund based facilities of INR182.5 million and INR178.5 million of Foreign Discount Bill Purchase (FDBP) and Packing Credit in Foreign Currency (PCFC) facilities, respectively, of STAGRO. The ratings factor in the highly fragmented nature of the Indian shrimp processing industry with low entry barriers, significant competition in the export market from other competing countries, threat from other sea food varieties, vulnerability to the outbreak of any disease and negligible value addition to products. The ratings also consider the possible increase in antidumping duties by importing countries, and withdrawal of various export incentives extended by the Government of India (GoI) together with volatility in foreign currency exchange rates. Further, the relatively small scale of operations, moderate client concentration risk, highly leveraged financial structure with weak cash flows and tight liquidity impact the ratings. The company has commenced vannamei production and has a moderately diversified geographic presence with low churn in customers. Star Agro Marine Exports Private Limited was incorporated in 1998 with its factory at Nellore in Andhra Pradesh. Its promoter, Mr. Shaik Abdul Aziz, has over fourteen years of experience in shrimp farming. Until 2000, the company outsourced processing of shrimps and in 2005, the company acquired the current processing plant to consolidate its operations and improve its efficiency. The company currently has processing facilities of 30 tons per day (tpd) and cold storage capacity of 1600 tpd. In 2006, the company floated M/s. Star Agro Marine Inc., a liaison office in the United States of America. The company currently caters only to export markets and supplies to Belgium, France, Germany, United Kingdom and the United States. Currently, the equity of the company is mainly held by Mr. Aziz and his associates. SWARNA SARITA: CRISIL Assigns 'BB' Rating to INR100MM Cash Credit ----------------------------------------------------------------- CRISIL has assigned its 'BB/Stable' rating to Swarna Sarita Jwellers Pvt Ltd's cash credit facility. Facilities Ratings ---------- ------- INR100.00 Million Cash Credit BB/Stable (Assigned) The rating reflects SSJPL's small scale of operations, large working capital requirements, exposure to intense competition in the jewellery industry, and susceptibility to volatility in gold prices. The rating also factors in expected deterioration in SSJPL's financial risk profile because of increase in working capital borrowings. These rating weaknesses are partially offset by SSJPL's promoters's experience in the jewellery business. Outlook: Stable CRISIL believes that SSJPL's scale of operations will remain small over the medium term. The outlook may be revised to 'Positive' if SSJPL increases its scale of operations and improves its margins. Conversely, the outlook may be revised to 'Negative' if there is significant pressure on SSJPL's profitability because of increase in gold prices or pressure on its liquidity because of increased working capital requirements. About Swarna Sarita SSJPL trades in gold- and diamond-studded jewellery. The company specialises in antique and Calcutta jewellery. It sells to retailers in Mumbai, Bangalore, Kolkata, and Ahmedabad. SSJPL has a 1000-square-foot showroom in Jhaveri Bazaar, Mumbai. SSJPL reported a provisional profit after tax (PAT) of INR4.8 million on net sales of INR425 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR2.7 million on net sales of INR292 million for 2008-09. ================= I N D O N E S I A ================= INTERNATIONAL NICKEL: S&P Withdraws 'BB-' Corporate Credit Rating ----------------------------------------------------------------- (SAO PAULO (Standard & Poor's) Aug. 17, 2010) Standard & Poor's Ratings Services said that it withdrew its 'BB-' long-term corporate credit rating on PT International Nickel Indonesia at the request of its controlling shareholder, Vale S.A. (BBB+/Stable). PT Inco is an Indonesia-based nickel company that is 61.16%-owned by Vale. ========= J A P A N ========= ALL NIPPON: Aims to Boost Profit From Higher Frequent Flier Member ------------------------------------------------------------------ All Nippon Airways Co. intends to boost profit from its 20.5 million-member frequent flier program after adding twice the number of new cardholders as Japan Airlines Corp., The Japan Times reports. "We aim to increase profit every year," the report quoted Haruo Konishi, a manager in ANA's loyalty marketing section, as saying. Mr. Konishi said the loyalty-card unit made a profit last fiscal year, when the overall carrier lost money, The Japan Times relates. The Japan Times says ANA signed up 940,000 new frequent-fliers in the first half, 38% more than a year earlier, after adding new promotions and flying more passengers. JAL's new enrollments plunged 26% during the same period as it slumped into bankruptcy and slashed flights, the report notes. "People are worried about the stability of JAL," said Yasuhiro Matsumoto, an analyst at Shinsei Securities Co. "It makes sense for them to shift to ANA." To win more members, the report notes, ANA introduced an American Express Co.-branded credit card in October. It already had tieups with Visa Inc. and Mastercard Inc. The carrier also allowed cardholders to pool points with family members beginning in April. Konishi said ANA has no plans to grow its frequent-flier unit into a separate business. It predicts net income of JPY5 billion this business year ending March 31, compared with a loss of JPY57 billion in the previous 12 months. 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). ========= K O R E A ========= SSANGYONG MOTOR: Net Loss Narrows to KRW21.54 Bil. in Second Qtr ---------------------------------------------------------------- Dow Jones Daily Bankruptcy Review reports that Ssangyong Motor Co. said improved sales helped narrow net losses in the second quarter, with an expanded product lineup in the second half to further boost earnings in the second half. Ssangyong said the net loss narrowed to KRW21.54 billion ($18 million) in the three months ended June 30 from KRW177.17 billion a year earlier, the result of higher sales and debt-rescheduling associated with its court-ordered bankruptcy protection, Dow Jones relates. "The company and the union ended this year's wage talks in May without strikes, with Ssangyong becoming the first company to accept the government's plan to cut the number of paid union executives in large numbers," company spokesman Choi Jin-woong told Dow Jones. "Settling the wage talks created a stable production schedule so the company could meet the increasing demand for Ssangyong vehicles." According to Dow Jones, Ssangyong said in the statement that if the Korando C compact sport-utility vehicle goes on sale in the domestic market in the second half as planned, sales will improve further. Operating losses narrowed to KRW8.39 billion for the three months ended June 30 from KRW27.49 billion, while sales jumped to KRW529.63 billion from KRW221.73 billion, the company said in a regulatory filing. "Efforts to explore new markets such as Russia and Latin America and to restore the brand image in overseas markets began to work (in the quarter)," the statement said. About Ssangyong Motor Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd. -- http://www.smotor.com/-- is a manufacturer of automobiles primarily engaged in production of sports utility vehicles (SUVs) and recreational vehicles (RVs). The company's production is grouped into four lines: SUVs under brand names REXTON, KYRON and ACTYON; sports utility trucks (SUTs) under the brand name ACTYON Sports; passenger cars under brand name Chairman, and multi- purpose vehicles (MPVs) under the brand name Rodius. It also provides automobile parts such as coolers, diesel engines and others. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 12, 2009, Ssangyong Motor Co. filed for receivership with the Seoul Central District Court to stave off a complete collapse. In February 2009, the Seoul Central District Court accepted Ssangyong's application to rehabilitate under court protection. The court named former Hyundai Motor Co. executive Lee Yoo-il and Ssangyong executive Park Young-tae to run the automaker. A TCR-AP report on Sept. 16, 2009, said Ssangyong Motor submitted a revival plans to the Seoul Central District Court seeking capital reduction and a debt-for-equity swap by creditor. A South Korean bankruptcy court approved in December Ssangyong Motor's restructuring plan despite opposition by some bondholders. The TCR-AP reported on Aug. 12, 2010, that Ssangyong Motor Co. chosen India's top utility vehicle maker Mahindra & Mahindra Ltd. as the preferred bidder for its majority stake. =============== M A L A Y S I A =============== KENMARK INDUSTRIAL: Receives Letter of Demand from EON Bank ----------------------------------------------------------- Kenmark Industrial Co. (M) Berhad has received a letter of demand for MYR7,668,375.41 from Messrs. Azim, Tunku Farik & Wong acting for EON Bank Berhad to be paid within seven days from the date of the letter on August 11, 2010, for default of banking facilities. Kenmark said the default arose from the failure of Kenmark Paper Sdn Bhd, the Company's wholly-owned subsidiary, to operate the banking facilities granted by the Bank and the demand from Kenmark as the Guarantor. The details of the entire amount outstanding as at May 27, 2010, are: * Bankers Acceptance: MYR3,659,326.00 * Revolving Credit: MYR3,509,050.13; and * Overdraft: MYR499,998.78. Kenmark has also received a letter of demand for MYR2,171,289.78 from Messrs. Lee Hishammuddin Allen & Gledhill acting for RHB Bank Berhad to be paid within seven days from the date of the letter on August 3, 2010, for default of banking facilities. About Kenmark Industrial Kenmark Industrial Co. (M) Berhad is a Malaysia-based company. The Company is engaged in the manufacturing of computer workstations, cabinets, furniture; printing of packaging materials; the distribution of consumer products, and investment holding. The Company is also engaged in plastic injection for furniture parts, and assembly and distribution of liquid crystal display (LCD). It exports its products to the United States, Europe, Japan and Australia. The Company's wholly owned subsidiaries include Kenmark Paper Sdn. Bhd., which is engaged in manufacturing plastic parts for wooden furniture and cabinets, and investment holding; Kenmark (Labuan) Limited, which is engaged in international trading, commission agent and investment holding; Phoenix International Group Limited, which is engaged in trading in electronic devices, and Billion Dynamic Sdn. Bhd., which is engaged in the assembling and trading of electronic devices. * * * Kenmark Industrial Co. (M) Berhad has been classified a Practice Note 17 company based on the criteria set by the Bursa Malaysia Securities Bhd after it triggered Paragraph 2.1(f) of the Listing Requirements. The Company's major subsidiaries have defaulted on some of their banking facilities. The Company is also unable to provide a solvency declaration. LIMAHSOON BERHAD: Unit Receives Summons After Payment Default ------------------------------------------------------------- Kilang Papan Lim Ah Soon Sdn Bhd, a subsidiary of Limahsoon Berhad, has been served with a Writ of Summons by Worldclass Profile Sdn Bhd for default in payment of freight forwarding services. Worldclass Profile is claiming for MYR39,897.11 due and owing at interest rate of 8% p.a. from the date of court judgement to the date of full and final realization. The litigation will not have any operational impact on Limahsoon Group as Limahsoon is an investment holding company and has no operations. KPLAS has ceased operations with effective from December 31, 2009. Limahsoon will seek necessary legal advice from its solicitors with regards to the claim. About Limahsoon Berhad Limahsoon Berhad (KUL:LIMAHSN) -- http://www.limahsoon.com/-- is a Malaysia-based company engaged in investment holding and the provision of management services to its subsidiaries. The Company operates in two business segments: manufacturing of laminated board, which includes pressure treatment, kiln drying and the manufacture of laminated boards and mouldings, and sawmilling, which includes sawmilling of green rubberwood. Limahsoon Berhad has been classified a Practice Note No. 17 company based on the criteria set by the Bursa Malaysia Securities Bhd after as the Company defaulted in payment and is unable to provide a Solvency Declaration to Bursa Securities. MALAYSIAN MERCHANT: Ordered to Sell MT Ashton Vessel to Pay Debts ----------------------------------------------------------------- Malaysian Merchant Marine Berhad said that it has received notification from its solicitors in Manila that the Philippines' Trial Court of Pasig had ordered the sale of its vessel, MT Ashton, as settlement of US$900,070 debt owed by the Company to a Philippines creditor. The Company was also informed that the same creditor had disposed the said vessel on August 2, 2010, for US$1 million. With the Court ordered disposal of MT Ashton and the seizure (by the bondholder) of the Company's other 2 vessels, namely MT Dayton and MT Kingston, the Company said it does not possess any more assets. About Malaysian Merchant Malaysian Merchant Marine Berhad is a Malaysia-based investment holding company engaged in transportation of goods by sea and the provision of ship management services. The principal activities of the subsidiary companies are those of transportation of goods by sea and provision of logistics services. The Company's operating subsidiaries include MMM Panama Inc., MMM Suez Inc., Splendid Eminent Sdn. Bhd., Oceanwealth Fountain Sdn. Bhd., Malaysian Pacific Ocean Line Sdn. Bhd., Pan Asia Ocean Line Sdn. Bhd., Prestige Splendour Sdn. Bhd., Ample Remark Sdn. Bhd., Edgewise Fairway Sdn. Bhd., and Malaysian Ocean Line Sdn. Bhd. * * * Malaysian Merchant Marine Berhad has been classified as an affected listed issuer as the Company's shareholders' equity on a consolidated basis is less than 25% of its issued and paid up capital of the Company and is less than MYR40 million. The Board of Directors is of the view that the Company's going concern status in the present capital structure and business model is in serious doubt and accordingly, the Company offered voluntary separation settlement terms to all its employees on March 4, 2010. NAM FATT: Defaults on MYR52.51 Million Bank Facilities ------------------------------------------------------ Nam Fatt Corporation Berhad disclosed that it had not made any payment on principal and/or interest for the outstanding A Irredeemable Convertible Unsecured Loan Stocks ("A-ICULS") and B Irredeemable Convertible Unsecured Loan Stocks ("B-ICULS") of the Company totaling MYR52,519,816.19 as at March 31, 2010, together with any interest thereon were deemed defaulted. The total amount outstanding of MYR52,519,816.19 is inclusive of the default in payment of interest for A-ICULS as announced on June 30. The Company said it does not have sufficient funds to repay the outstanding amount. The Company is formulating a scheme of compromise with financial institutions and creditors of the Scheme Companies under Section 176 of the Companies Act, 1965. The A-ICULS and B-ICULS will be resolved under the scheme of compromise. Such default may have an adverse impact on the business, financial and operational aspects of the Company and its subsidiaries in terms of securing of new contracts and/or raising finance for new contracts, if there is any. The Company's directors are of the opinion that such default will constitute an event of default under different agreements for indebtedness (cross default) under the Nam Fatt Group. The total credit facilities granted to the Nam Fatt Group as at March 31, 2010 is approximately MYR599.073 million. The directors were also of the opinion that the Company will not be able to pay all its debts as and when they fall due over the next 12 months, and this opinion remains unchanged. About Nam Fatt Nam Fatt Corporation Berhad is a Malaysia-based company. The principal activities of the Company consist of investment holding and construction of bridges, heavy concrete foundations, roads, factory complexes and other similar construction activities. The Company operates in four business segments: engineering and construction, property, leisure, and manufacturing. The Company's subsidiaries include Nam Fatt Fabricators Sdn. Bhd., which is engaged in the construction of bridges, heavy concrete foundations, roads, factory complexes and similar construction activities; Agenda Istimewa Sdn Bhd, which is engaged in property development; P & N Construction Sdn. Bhd. which is engaged in the business of general contractors; Nam Fatt Marketing Sdn. Bhd., which is a sales distributor and marketing agent, and Maddusalat Berhad, which is the owner and developer of golf resort and its recreational amenities, property developer, and property manager. * * * Nam Fatt Corporation Berhad has been classified as an Affected Listed Issuer under Practice Note 17 of the Listing Requirements of Bursa Malaysia Securities Berhad. The Company has triggered Paragraph 2.1(f) of the Practice Note 17 of the Main Market Listing Requirement of Bursa Malaysia following failure to meet its principal and interest payment of MYR13,225,037.39 due and payable on March 15, 2010, in respect of the Asset Sale Agreement dated December 4, 2007, between Bank Kerjasama Rakyat Malaysia Berhad and Nam Fatt. TRANSMILE GROUP: CCM Strikes-Off Indonesian Unit From Register -------------------------------------------------------------- Transmile Group Berhad said it received notification from the Companies Commission of Malaysia that Transmile (Indonesia) Sdn. Bhd., a wholly-owned subsidiary of Transmile Air Services Sdn. Bhd. (also a wholly-owned subsidiary of Transmile Group) has been struck-off from the register of the Companies of Malaysia. TISB was incorporated in Malaysia on December 15, 1997. The Striking-Off has no material effect on the earnings and net assets per share of the Company for the financial year ending December 31, 2010. Upon completion of the Striking-Off, TISB will cease to be wholly-owned subsidiary of TAS and sub-subsidiary of TGB. About Transmile Group Transmile Group Berhad is an investment holding company. The Company is engaged in provision of air transportation and related services. The Company's subsidiaries include Transmile Air Services Sdn. Bhd., which provides air transportation and related services and deals in aircraft, aircraft parts and equipment; Transmile Thailand Sdn. Bhd., which is engaged in investment holdings; Transmile Management Sdn. Bhd., which provides management services; Viunique Corporation Sdn. Bhd., which leases aircraft; and CEN Worldwide Sdn. Bhd., which is engaged in express distribution and logistics management services. * * * Transmile Group Berhad has been considered as an Amended Practice No. 17 company based on the criteria set by the Bursa Malaysia Securities Bhd. According to a disclosure statement with the bourse, the PN17 criteria was triggered resulting from Transmile's latest unaudited quarterly announcement for the full financial year ended Dec. 31, 2009, wherein the shareholders' equity of the Company on a consolidated basis is less than 25% of the Company's issued and paid-up capital (excluding treasury shares) and such shareholders' equity is less than MYR40 million. ==================== N E W Z E A L A N D ==================== REYNOLDS GROUP: S&P Puts 'B+' Rating on CreditWatch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services said that it placed all its ratings, including its 'B+' long-term corporate credit rating, on New Zealand-based packaging supplier Reynolds Group Holdings Ltd. on CreditWatch with negative implications. "The CreditWatch placement reflects the likelihood that Reynolds' financial risk profile will weaken, as a result of the proposed acquisition of U.S.-based packaging company Pactiv Corp., and the risk that the negative impact from this would not be offset by a positive impact on the group's business risk profile," said Standard & Poor's credit analyst Izabela Listowska. S&P understand, based on an announcement on Aug. 17, 2010, that Reynolds intends to acquire Pactiv for a total consideration of about US$4.6 billion (about NZ$3.6 billion) with a total transaction value of about US$6 billion (including equity, assumed debt, and transaction costs). Reynolds plans to finance the acquisition through new debt issuance of about $5 billion, and a combination of assumed debt, common equity, and cash. The acquisition is expected to close in the fourth quarter of 2010, and is subject to customary regulatory approvals and closing conditions. S&P currently believe that the impact on Reynolds' business risk profile (currently "satisfactory") is likely to be moderately positive, providing a successful completion of the acquisition of Pactiv. This is based on Pactiv's leading market positions, a strong brand, product innovation, stable food-related end markets, and a focus on operational excellence. Nevertheless, based on available information with regard to the intended funding, S&P believes that the impact of the acquisition on Reynolds' financial risk profile will be strongly negative. This is based on a transaction multiple of unadjusted debt to EBITDA of about 8x, compared with Reynolds' current pro forma last-12-months debt to EBITDA of about 5.45x (based on last 12 months ended March 31, 2010). S&P estimates, based on the size of the transaction, and an estimate of adjustments according to its corporate criteria, that pro forma adjusted debt to EBITDA could increase to above 6.5x. S&P views this as aggressive in relation to S&P's current expectation of a ratio of about 5.5x for the existing ratings, which is based on the current business risk profile. Furthermore, in the context of financial policies, S&P views the proposed acquisition as being very aggressive. Combined, these factors could lead to a lowering of the ratings. S&P expects to resolve the CreditWatch placement within the next three months, during which S&P will consider the impact of the proposed acquisition on Reynolds' business risk and financial risk profiles. S&P will focus on the magnitude of the likely negative impact on the Reynolds' financial risk profile, including credit metrics, as well as an assessment of any impact on the group's liquidity profile. Furthermore, S&P will assess any potential positive impact on Reynolds' business risk profile, including the potential for better diversification and for realizing synergies. At this point, S&P expects that any downgrade of the corporate credit rating would be limited to one notch. =============== P A K I S T A N =============== PAKISTAN MOBILINK: Moody's Reviews 'B2' Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service has placed its B2 corporate family and Caa1 senior unsecured bond ratings for Pakistan Mobilink Communications Limited under review for possible downgrade. The review has been prompted by a similar action for parent Orascom Telecom Holdings SAE (B2 corporate family and Caa1 senior unsecured bond ratings under review for possible downgrade), on concerns about the operating performance of OTH's Algerian subsidiary and the ability to repatriate cash from that country, as well as ongoing liquidity pressures at the holdco level. The rating action also reflects the close linkage between OTH and Mobilink, in light of OTH's 100% ownership and Mobilink's historical track record of relying on OTH's support for covenant compliance. "In Moody's view, Mobilink should be able to comply with amended bank covenants at least for the next 12 months. Beyond this date, Moody's anticipates that covenant headroom could erode, and further support from OTH may be required -- particularly as the covenants are scheduled to step down in December 2011 -- unless Mobilink is able to meet its projections," says Laura Acres, a Moody's Vice President and Senior Credit Officer. "However, recently announced Q2 2010 results indicate an adjusted debt/EBITDA of 2.8x and, together with compliance certificates for the June 30, 2010, test date, suggest that the company is performing well against expectation," adds Acres, also Moody's Lead Analyst for Mobilink. Mobilink's stand-alone financial metrics are strongly positioned for the current rating level, reflecting the company's established brand, leading market position, and extensive network coverage, as well as its moderate leverage and strong margins. However, in Moody's view, these strengths are largely offset by the company's tightening liquidity profile given plans to increase capex in H2 2010 as well as inherent emerging market risks given Pakistani operations. The review will focus on: 1) Mobilink's ability to achieve its projections such that no financial assistance will be required; and 2) any negative impact on Mobilink's operating and financial profile arising as a consequence of negative rating pressures on OTH. The review will also consider the extent to which Mobilink's ratings can deviate from those of OTH's, given the protections in Mobilink's loan documentation. The last rating action was on July 1, 2010, when Mobilink's B2 corporate family rating and Caa1 senior unsecured bond rating were confirmed with a negative outlook following the successful completion of its covenant amendment exercise with creditors. Mobilink is the largest mobile operator in Pakistan with more than 32.2 million customers and a subscriber market share of 32.6% as at June 2010 (according to PTA). Mobilink is indirectly 100%- owned by OTH. ********* 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 ***