/raid1/www/Hosts/bankrupt/TCRAP_Public/100831.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
Tuesday, August 31, 2010, Vol. 13, No. 171
Headlines
C H I N A
RENHE COMMERCIAL: Moody's Assigns 'Ba2' Rating to Senior Notes
RENHE COMMERCIAL: S&P Assigns 'BB' Rating to Senior Notes
H O N G K O N G
CARGO LINK: Members' and Creditors Meetings Set for September 3
CN DRAGON: Swings to $24,523 Net Income in June 30 Quarter
LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases
MILLION FORTUNE: Kong and Lo Appointed as Liquidators
MIKURA LIMITED: Kong and Lo Appointed as Liquidators
MING FUNG: Ho and Kong Appointed as Liquidators
NATURAL WOOD: Ho and Kong Appointed as Liquidators
NEW LINKAGE: Kong and Lo Appointed as Liquidators
O' CLASSIC INT'L: Kong and Lo Appointed as Liquidators
OPESCO INVESTMENT: Kong and Lo Appointed as Liquidators
PACIFIC (WING HONG): Kong and Lo Appointed as Liquidators
POLYTRADE RECYCLING: Court to Hear Wind-Up Petition on Sept. 29
POWER PACKING: Kong and Lo Appointed as Liquidators
SAGGIO (HK): Kong and Lo Appointed as Liquidators
SILVER UP: Creditors Get 100% Recovery on Claims
SKYLINK GROUP: Court Enters Wind-Up Order
SLITECH LIMITED: Kong and Lo Appointed as Liquidators
SPENDERS IMAGE: Kong and Lo Appointed as Liquidators
STANFORD ANTI-COUNTERFEIT: Court to Hear Wind-Up Petition
STANDARD WELL: Kong and Lo Appointed as Liquidators
STARBAY INTERNATIONAL: Creditors Get 13% Recovery on Claims
SUN HING: Court Enters Wind-Up Order
SUNRISE DESIGN: Kong and Lo Appointed as Liquidators
SUN TUNG: Kong and Lo Appointed as Liquidators
SUNVILLE INVESTMENT: Creditors Get HK$200 Recovery on Claims
TATTUNE DEVELOPMENT: Kong and Lo Appointed as Liquidators
TCM DEVELOPMENT: Kong and Lo Appointed as Liquidators
I N D I A
GOLD STAR: CARE Rates INR50cr Short-Term Bank Debt at 'PR4+'
GOLDSTAR JEWELLERY: CARE Rates INR37.5cr Short-Term Loan at 'PR4+'
MANOHAR FILAMENTS: ICRA Puts 'LBB+' Rating on INR12.8cr Term Loans
MAHARASHTRA WATER: ICRA Reaffirms 'LBB(SO)' Rating on Bond Issue
PARIKH FABRICS: Fitch Assigns 'D' National Long-Term Rating
POWER SPINNING: Fitch Assigns 'B+' National Long-Term Rating
PS KRISHNAMURTHY: Fitch Assigns 'BB+' National Long-Term Rating
RCM INFRASTRUCTURE: CRISIL Places 'BB' Rating on INR40MM Bank Debt
SHREE RAJ: CRISIL Rates INR350 Million Cash Credit at 'B+'
SRC UDYOG: CARE Puts 'CARE B+' Rating on INR73.3cr Long-Term Loan
THANGAM STEEL: Fitch Assigns 'BB+' National Long-Term Rating
VARDHMAN VITRIFIED: ICRA Assigns 'LBB-' Rating to INR11cr Loan
J A P A N
J FRONT: Closes Matsuzakaya Store in Nagoya Amid Sales Slump
SUNSHINE TRUST: Moody's Assigns 'Ba3' Rating on Class C Notes
M A L A Y S I A
LCL CORP: Posts MYR32.69 Million Net Loss for June 30 Quarter
TRACOMA HOLDINGS: Incurs MYR2.71 Million Net Loss in June 30 Qtr.
N E W Z E A L A N D
AORANGI SECURITIES: SFO Widens Probe Into Hubbard's Firms
BRIDGECORP LTD: Chairman Loses Appeal on Directorship Ban
REDGROUP RETAIL: Obtains Waiver for Banking Covenant Breach
SOUTH CANTERBURY: In Receivership; Gov't. to Repay NZ$1.6 Billion
STRATEGIC FINANCE: Has Book Value Deficit of NZ$195.5 Million
S I N G A P O R E
ANODE CONNECTIONS: Court to Hear Wind-Up Petition on September 3
COMFORT RESOURCES: Court Enters Wind-Up Order
EAGLE MONEY: Creditors Get 60.20% Recovery on Claims
GRACE PHARMACEUTICALS: Creditors Get 19.2968% Recovery on Claims
INNORESOURCES PTE: Creditors Get 100% Recovery on Claims
MAXIM KINGDOM: Court to Hear Wind-Up Petition on September 3
MECH-TECH MARINE: Creditors and Contributories to Meet on Sept. 6
VIKING FIELD: Court Enters Wind-Up Order
T A I W A N
BANK OF TAIPEI: Fitch Affirms Individual Rating at 'C/D'
T H A I L A N D
FORD MOTOR: Invests With Mazda US$350 Million in Joint Venture
X X X X X X X X
* BOND PRICING: For the Week August 23 to August 27, 2010
- - - - -
=========
C H I N A
=========
RENHE COMMERCIAL: Moody's Assigns 'Ba2' Rating to Senior Notes
--------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 rating to Renhe
Commercial Holdings Co Ltd's proposed US$ senior unsecured notes.
At the same time, Moody's has affirmed Renhe's Ba2 corporate
family rating.
The outlook for all the ratings is negative.
The proceeds will be used to finance existing and new projects as
well as for working capital requirements.
Ratings Rationale
"The new bond issuance will support Renhe in developing existing
and new underground shopping centers," says Peter Choy, a Moody's
Vice President and Senior Credit Officer.
"Renhe's Ba2 ratings continue to reflect its strong track record
in developing and operating underground shopping centers at
selected prime commercial locations with zero land cost," says
Choy.
"The ratings also take into account the increasing execution risks
and sizable funding requirement associated with the company's
aggressive geographic expansion plan," adds Choy.
The negative outlook reflects the likely weaker-than-expected
operating performance of Renhe following its recent profit
warnings announcement for 1H 2010. Such negative developments
could pressure its credit metrics and hence its ratings.
Given the negative outlook, a rating upgrade is unlikely.
However, the outlook could return to stable if Renhe can
demonstrate its ability to achieve its full year sales target of
not less than RMB 9.0 - 10.0 billion and maintain EBITDA margin of
60% - 65%, Debt/Cap of below 40% and EBITDA/Interest of over 10x
on a sustainable basis.
Renhe's ratings could be under downgrade pressure if it
experiences (1) material shortfall in its its FY 2010 sales of
below RMB7.0 billion; (2) tremendous vacancies in underground
shopping centers; (3) sharp fall in portfolio rentals and
operating rights' market values; (4) a reduction of unrestricted
cash balance to below RMB4 billion; or (5) changes in law and
regulations that negatively impact the favorable conditions for
developing underground air defense shelters for commercial use
during peace time.
The key credit metrics that Moody's would consider for a rating
downgrade include Adjusted Debt/Cap rises above 40% - 45% and
EBITDA/Interest falls below 5-7x.
Moody's last rating action on Renhe was taken on 4 August 2010,
when Moody's revised to negative from stable the outlook of Renhe
Commercial Holdings Co Ltd's Ba2 corporate family rating and
senior unsecured debt rating.
Renhe's ratings were assigned by evaluating factors Moody's
believes are relevant to the credit profile of the issuer, such as
i) business risk and competitive position of the company versus
others within its industry; ii) capital structure and financial
risk of the company; iii) projected performance of the company
over the near to intermediate term; and iv) management's track
record and tolerance for risk.
These attributes were compared against other issuers both within
and outside of Renhe's core industry; Renhe's ratings are believed
to be comparable to those of other issuers of similar credit risk.
Renhe Commercial Holdings Co Ltd specializes in the commercial
operation and development of underground shopping centers which
can also function as civilian air-raid shelters in times of
conflict. The projects are built below city commercial centers
and transportation hubs, and free of land-use premium fees.
As of April 2010, the company operates four underground shopping
centers in Harbin, Heilongjiang Province, three of which are
interconnected, one in Guangzhou, Guangdong Province, and one in
Shenyang, Liaoning Province, with an aggregate gross floor area of
approximately 238,618 sqm. It is also provides management
services for one underground shopping center in Zhengzhou, Henan
Province, with an aggregate GFA of 94,180 sqm.
In addition, the company has 27 projects in 20 cities in the PRC
with an aggregated approved GFA of approximately 3,635,660 sqm
which are either under construction or being held for future
development.
Regulatory Disclosures
Information sources used to prepare the credit rating are these:
parties involved in the ratings, public information, confidential
and proprietary Moody's Investors Service's information.
Moody's Investors Service considers the quality of information
available on the issuer or obligation satisfactory for the
purposes of assigning a credit rating.
Moody's Investors Service adopts all necessary measures so that
the information it uses in assigning a credit rating is of
sufficient quality and from reliable sources; however, Moody's
Investors Service does not and cannot in every instance
independently verify, audit or validate information received in
the rating process.
RENHE COMMERCIAL: S&P Assigns 'BB' Rating to Senior Notes
---------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB' issue rating to the proposed issue of benchmark size senior
unsecured notes by Renhe Commercial Holdings Co. Ltd.
(BB/Stable/--). The issue rating is subject to S&P's review of
the final issuance documentation.
S&P expects the terms and conditions to be similar to those of the
outstanding senior unsecured notes that Renhe issued on May 18,
2010. The proceeds will be used for potential project
acquisitions, new project development, and general working capital
purposes.
Although the company's results in the first half of 2010 were
weaker than those in the same period of 2009, S&P continues to
expect the company to achieve S&P's base-line assumption of more
than Chinese renminbi (RMB) 6 billion in sales for full-year 2010.
S&P believes the company has the flexibility to adjust its mix of
rental and transfer of operating rights to achieve this target.
In addition, S&P's analysis of Renhe already factors in the
volatility of its earnings and cash flow generation. This
volatility is attributable to the company's low rental income and
its high reliance on income generated from the transfer of
operating rights, which are subject to construction and completion
schedules of projects. S&P don't expect the company's ratio of
total adjusted debt to EBITDA to be more than 3x for 2010.
The rating on Renhe reflects high regulatory risks, the company's
low recurring income, and its short track record as a publicly
listed company. In addition, S&P believes the company's financial
risk management is under-tested and its growth plan is ambitious,
comprising mostly greenfield development projects. These
weaknesses are tempered by the prime location of Renhe's existing
and potential projects, the company's high profitability, and the
high growth potential stemming from its exposure to growing
consumerism in China.
================
H O N G K O N G
================
CARGO LINK: Members' and Creditors Meetings Set for September 3
---------------------------------------------------------------
Members and creditors of Cargo Link (Hong Kong) Limited will hold
their annual meetings on September 3, 2010, at 2:30 p.m., and 3:00
p.m., respectively at 1008 Shui On Centre, 6-8 Harbour Road,
Wanchai, 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.
CN DRAGON: Swings to $24,523 Net Income in June 30 Quarter
----------------------------------------------------------
CN Dragon Corporation reported net income of $24,523 on $363,542
of revenue for the transition period from April 1, 2010, to
June 30, 2010, compared with a net loss (pro-forma) of $15,480 on
no revenue for the three months ended June 30, 2010.
The Company changed its accounting year ended from April 30 to
March 31 starting from 2011. The prior period is adjusted to
reflect the pro-forma result of presentation.
The Company's balance sheet as of June 30, 2010, showed
$1.88 million in total assets, $1.90 million in total liabilities,
and a stockholders' deficit of $22,056.
Albert Wong & Co., in Hong Kong, expressed substantial doubt about
the Company's ability to continue as a going concern, following
its 2009 results. The independent auditors noted that
the Company has not generated significant revenues since inception
and has never paid any dividends and is unlikely to pay dividends
or generate significant earnings in the immediate or foreseeable
future.
In its latest 10-Q, the Company discloses that it as of June 30,
2010, it has incurred an accumulated deficit of $5.22 million, and
that its current liabilities exceed its current assets by $62,098,
which may not be sufficient to pay for the operating expenses in
the next 12 months.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6a4f
Based in Hong Kong, China, CN Dragon Corporation was incorporated
under the laws of the State of Nevada on August 30, 2001, under
the name Infotec Business Systems, Inc. On June 8, 2007, the
Company changed its name to Wavelit, Inc. On September 14, 2009,
the Company changed its name to CN Dragon Corporation and began
new business operations in the PRC. On May 17, 2010, the Company
acquired CNDC Corporation, as its wholly-owned subsidiary.
CNDC is a hotel management, development and consulting group.
CNDC was incorporated under the laws of the British Virgin Islands
on March 26, 2008. CNDC operates through its wholly-owned
subsidiaries, CN Dragon Holdings Ltd and Zhengzhou Dragon Business
Ltd, which were incorporated in Hong Kong and the People's
Republic of China respectively.
LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases
-----------------------------------------------------------------
The Hong Kong Monetary Authority nnounced August 27 that
investigation of over 99% of a total of 21,700 Lehman-Brothers-
related complaint cases received has been completed. These
include:
* 13,967 cases which have been resolved by a settlement
agreement reached under section 201 of the Securities and
Futures Ordinance;
* 2,503 cases which have been resolved through the enhanced
complaint handling procedures required by the settlement
agreement;
* 2,586 cases which were closed because insufficient prima
facie evidence of misconduct was found after assessment or
no sufficient grounds and evidence were found after
investigation;
* 1,938 cases (including minibond cases) which are under
disciplinary consideration after detailed investigation by
the HKMA, of which proposed disciplinary notices are being
prepared in respect of 1,109 such cases and proposed
disciplinary notices or decision notices have been issued
in respect of the other 829 cases; and
* 536 cases in respect of which investigation work has been
completed and are going through the decision process to
decide whether there are sufficient grounds for
disciplinary actions or whether the cases should be closed
because of insufficient evidence or lack of disciplinary
grounds.
Investigation work is underway for the remaining 168 cases.
A table summarizing the progress of the disciplinary and
complaint-resolution work in respect of Lehman-Brothers-related
complaints is available at http://ResearchArchives.com/t/s?6a39
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)
MILLION FORTUNE: Kong and Lo Appointed as Liquidators
-----------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Million Fortune Investment Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
MIKURA LIMITED: Kong and Lo Appointed as Liquidators
----------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Mikura Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
MING FUNG: Ho and Kong Appointed as Liquidators
-----------------------------------------------
Ho Man Kit Horace and Kong Sze Man Simone said in notice dated
August 20, 2010, they have been appointed by the High Court of
Hong Kong as joint and several liquidators of Ming Fung Sanitary
Wares & Building Materials Company Limited. The High Court
entered an order on June 6, 2009, to wind up the operations of
Ming Fung Sanitary Wares & Building Materials Company Limited.
The company's liquidators are Ho Man Kit Horace and Kong Sze Man
Simone.
NATURAL WOOD: Ho and Kong Appointed as Liquidators
--------------------------------------------------
Ho Man Kit Horace and Kong Sze Man Simone said in notice dated
August 20, 2010, they have been appointed by the High Court of
Hong Kong as joint and several liquidators of Natural Wood
Development Limited. The High Court entered an order on August 5,
2010, to wind up the operations of Natural Wood Development
Limited.
The company's liquidators are Ho Man Kit Horace and Kong Sze Man
Simone.
NEW LINKAGE: Kong and Lo Appointed as Liquidators
-------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of New Linkage Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
O' CLASSIC INT'L: Kong and Lo Appointed as Liquidators
------------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of O' Classic International Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
OPESCO INVESTMENT: Kong and Lo Appointed as Liquidators
-------------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Opesco Investment Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
PACIFIC (WING HONG): Kong and Lo Appointed as Liquidators
---------------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Pacific (Wing Hong) Offset Printing
Company Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
POLYTRADE RECYCLING: Court to Hear Wind-Up Petition on Sept. 29
----------------------------------------------------------------
A petition to wind up the operations of Polytrade Recycling (H.K.)
Limited will be heard before the High Court of Hong Kong on
September 29, 2010, at 9:30 a.m.
Wong Chi Kwong filed the petition against the company on July 28,
2010.
POWER PACKING: Kong and Lo Appointed as Liquidators
---------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Power Packing & Removal Company
Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
SAGGIO (HK): Kong and Lo Appointed as Liquidators
-------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Saggio (Hong Kong) Company Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
SILVER UP: Creditors Get 100% Recovery on Claims
------------------------------------------------
Silver Up Company Limited, which is in liquidation, will pay the
first and final preferential dividend to its creditors on
September 10, 2010.
The company will pay 100% for ordinary claims.
The company's liquidator is:
Kennic Lai Hang Lui
KLC Kennic Lui & Co.
5th Floor, Ho Lee Commercial Building
38-44 D'Aguilar Street
Central, Hong Kong
SKYLINK GROUP: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on August 11, 2010,
to wind up the operations of Skylink Group Holdings Limited.
The official receiver is E T O'Connell.
SLITECH LIMITED: Kong and Lo Appointed as Liquidators
-----------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Slitech Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
SPENDERS IMAGE: Kong and Lo Appointed as Liquidators
----------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Spenders Image Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
STANFORD ANTI-COUNTERFEIT: Court to Hear Wind-Up Petition
---------------------------------------------------------
A petition to wind up the operations of Stanford Anti-counterfeit
Digital Technologies Limited will be heard before the High Court
of Hong Kong on September 15, 2010, at 9:30 a.m.
Yu Shun Lin filed the petition against the company on July 14,
2010.
The Petitioner's solicitor is:
Paul W. Tse
Room 1701, Causeway Bay Plaza I
489 Hennessy Rd
Causeway Bay, Hong Kong
STANDARD WELL: Kong and Lo Appointed as Liquidators
---------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Standard Well Development Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
STARBAY INTERNATIONAL: Creditors Get 13% Recovery on Claims
------------------------------------------------------------
Starbay International Limited, which is in creditors' voluntary
liquidation, declared the first and interim dividend to unsecured
creditors on August 13, 2010.
The company paid 13% for ordinary claims.
The company's liquidator is:
Stephen Briscoe
602 The Chinese Bank Building
61-65 Des Voeux Road
Central, Hong Kong
SUN HING: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on August 11, 2010,
to wind up the operations of Sun Hing Hong Environmental
Technologies Limited.
The official receiver is E T O'Connell.
SUNRISE DESIGN: Kong and Lo Appointed as Liquidators
----------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Sunrise Design & Decoration (HK)
Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
SUN TUNG: Kong and Lo Appointed as Liquidators
----------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Sun Tung Long Caterers (Management &
Consultant) Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
SUNVILLE INVESTMENT: Creditors Get HK$200 Recovery on Claims
------------------------------------------------------------
Sunville Investment Company Limited, which is in compulsory
liquidation, will pay the first interim return of capital to its
creditors on August 25, 2010.
The company will pay HK$200 per share for ordinary claims.
The company's liquidators are:
Kong Chi How, Johnson
Lo Siu Ki
25th Floor, Wing On Centre
111 Connaught Road
Central, Hong Kong
TATTUNE DEVELOPMENT: Kong and Lo Appointed as Liquidators
---------------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of Tattune Development Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
TCM DEVELOPMENT: Kong and Lo Appointed as Liquidators
-----------------------------------------------------
Mr. Kong Chi How Johnson and Mr. Lo Siu Ki on July 27, 2010, were
appointed as liquidators of TCM Development Co. Limited.
The liquidators may be reached at:
Mr. Kong Chi How Johnson
Mr. Lo Siu Ki
25/F, Wing On Centre
111 Connaught Road
Central, Hong Kong
=========
I N D I A
=========
GOLD STAR: CARE Rates INR50cr Short-Term Bank Debt at 'PR4+'
------------------------------------------------------------
CARE Assigns 'PR4+' rating to the short-term bank facilities of
Gold Star Jewellery Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- --------
Short-term Bank Facilities 50.00 PR4+ Assigned
Rating Rationale
The rating is constrained by the closely-held nature of GSJPL and
weak financials characterized by consistent decline in sales,
declining PAT with operating loss in FY09 and elongated long
working capital cycle. Further, the rating also factors-in the
intense competition from various organized as well as unorganized
players in the industry. Nevertheless, the rating gathers
strength from the promoters' experience in the G&J industry,
group support in operations and established relations with
customers. Ability of GSJPL to improve sales and profitability
given the recovery in the global economies is the key rating
sensitivity.
About Gold Star
Gold Star Jewellery Pvt. Ltd incorporated in the year 1990 as part
of Gold Star group by Mr. Satish R. Shah who has a vast of
experience of four decades in Gems & Jewellery industry. GSJPL
operates in two segments viz. manufacturing and trading. The
company is engaged in manufacturing and exporting of gold
jewellery mainly studded with diamond of various size and
forms such as princess, tapers etc. GSJPL has two manufacturing
units, both located at SEEPZ-SEZ, Mumbai.
In FY09, GSJPL reported a net loss of INR13.26 crore on a net
sales of INR229.33 crore. The loss incurred by the company was
due to notional foreign exchange loss on forward contract. As per
provisional FY10 results, GSJPL reported sales growth of 24.04%
y-o-y. The PBILDT margins more than doubled, while the company
reported a PAT of INR0.65 crore in FY10 (prov.) vis-a-vis net loss
in FY09.
GOLDSTAR JEWELLERY: CARE Rates INR37.5cr Short-Term Loan at 'PR4+'
------------------------------------------------------------------
CARE assigns 'PR4+' rating to the short-term bank facilities
Goldstar Jewellery Designs Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- --------
Short-term Bank Facilities 37.50 PR4+
Rating Rationale
The ratings are constrained by the closely-held nature of GSJDPL,
the small size of operations and long working capital cycle.
Further, the ratings also factor-in the intense competition from
various organized as well as unorganized players in the industry.
Nevertheless, the ratings gather strength from the promoters'
experience in the Gems & Jewellery industry, group support in
operations and established relations with customers.
Ability of GSJDPL to improve sales and profitability given the
recovery in the global economies is the key rating sensitivity.
About Goldstar Jewellery
Goldstar Jewellery Designs Pvt. Ltd was incorporated on May 14,
2004, as part of Gold Star group which was formed in late 1960s
promoted by Mr. Satish Shah who has been in this business for more
than four decades. The company is engaged in the manufacturing of
diamond-studded gold jewellery. GSJDPL is an export-oriented
company with exports to countries like USA, UK, UAE and
other countries such as Ireland, Japan, Spain, Pakistan,
Switzerland, Hong Kong and Netherlands, with majority of sales to
USA. Further, the company procures raw material from Goldstar
Jewellery Pvt. Ltd., which in turn procures rough diamonds from a
group company, viz. DiamStar which is a DTC sight-holder.
MANOHAR FILAMENTS: ICRA Puts 'LBB+' Rating on INR12.8cr Term Loans
------------------------------------------------------------------
ICRA has assigned an 'LBB+' rating to the INR12.8 Crore term loans
and INR6.2 Crore fund based facilities of Manohar Filaments (P)
Limited. ICRA has also assigned 'A4+' rating to the INR3.0 Crore
non-fund based facilities of MFPL. The outlook on the long-term
rating is stable.
The ratings are constrained by MFPL's modest scale of operations,
low return indicators and increase in leverage due to debt funding
of capital expenditure besides the intense competitive nature of
the business. The ratings however, favorably factor in the
promoter's experience in the industry; its "approved vendor"
status for reputed brands like GAP, H&M, Target, Benetton and The
Children's Place and the relationships built by the company with a
well diversified clientele. The ratings also take into account
the company's efforts towards enhancing product portfolio to
leverage its relationships with existing clientele.
MFPL supplies garment accessories like tags, labels and belts for
reputed international apparel brands to their corresponding
garment manufacturers. Being a recognized vendor for brands like
GAP, H&M and Target, the company has established relationships
with leading garment exporters and has also built a diverse
domestic client portfolio of more than 300 clients over the years.
In 2008-09, the top 10 clients constituted 24% of the total
revenues. The company is dependent on the sourcing plans of the
above mentioned international retailers and their manufacturers;
thus leading to low revenue visibility. The company secures
orders on a bidding basis from the garment manufacturers and
typically has a one week order book on hand. However, with the
improved industry scenario, the size of order book has presently
increased to a month's sale.
In March 2010, the company commissioned a paper printing and
packaging unit in Barhi, Haryana at a total cost of INR15 Crore,
funded by term loan of INR9 Crore and internal accruals of INR 1.8
Crore. This capital investment was done with an objective to
widen the company's product portfolio and enable it to leverage
its existing client relationships. While the capital expenditure
that went into the project has increased the leverage, the
incremental profitability to be achieved from this facility post
stabilization of operations is yet to be seen. The company
expects the unit to contribute INR 25-30 Crore to the topline in
2010-11. The enhanced scale of operations would require external
funding through debt or equity; any delay in the same could have
an adverse impact on the liquidity of the company and would be a
key rating sensitivity.
As per provisional accounts, MFPL's operating income grew by 14%
from INR41.7 Crore in 2008-09 to INR47.6 Crore in 2009-10 while
the profitability continued to remain under pressure. The
operating profit margin and net profit margin for 2009-10 stood at
12.1% and 1.5% respectively. The company incurred about INR16
Crore capital expenditure in 2009-10 which led to increase in
gearing to 0.9 times as of March 31, 2010; however the coverage
indicators are still comfortable. The interest coverage ratio and
NCA/ Total Debt as of March 31, 2010 were respectively 4.9 times
and 17%. The company has plans for INR13-15 Crore capital
investment this year which together with increased working capital
borrowing to support enhanced scale of operations could adversely
impact the capital structure, debt protection metrics and
liquidity profile of the company and would be a key rating
sensitivity.
MAHARASHTRA WATER: ICRA Reaffirms 'LBB(SO)' Rating on Bond Issue
----------------------------------------------------------------
ICRA has reaffirmed the 'LBB (SO)' rating assigned to the
INR 39.32 crore bond issue of Maharashtra Water Conservation
Corporation. The letters SO in parenthesis suffixed to the rating
symbol stand for Structured Obligation. An SO rating is specific
to the rated issue, its terms and its structure. SO ratings do
not represent ICRA's opinion on the general credit quality of the
issuers concerned. Same comment as in others.
The rating primarily reflects the intrinsic credit quality of the
State Government of Maharashtra (GoM) as well as the adherence of
MWCC to ICRA-stipulated structure conditions for servicing the
rated bonds. The rating is supported by an unconditional and
irrevocable guarantee from GoM along with budgetary provisions for
payment of interest and principal in the annual budget of GoM.
However, the rating is constrained by the history of delays in
payment of interest to investors because of a delay in receipt of
funds from the GoM, and non-compliance of MWCC with a number of
structure conditions stipulated by ICRA. ICRA would continue to
monitor the compliance with its structure conditions and take
appropriate rating action, if material deviations from them are
observed in the future.
About Maharashtra Water
MWCC was set up under the Maharashtra Water Conservation
Corporation Act 2000 (Maharashtra Act No. III of 2001) in August
2000. The corporation has been established especially for the
promotion, operation and rapid development and regulation of
watershed and water conservation works including irrigation
projects in the State of Maharashtra. Since the projects of MWCC
were not expected to be commercially viable, additional comfort in
the nature of guaranteed funding support from GoM's annual budgets
was extended for servicing the rated Bond issue.
PARIKH FABRICS: Fitch Assigns 'D' National Long-Term Rating
-----------------------------------------------------------
Fitch Ratings has assigned India's Parikh Fabrics Pvt Ltd a
National Long-term rating of 'D(ind)'. The agency has also
assigned a 'D(ind)' rating to Parikh's INR220 million cash credit
limits and INR580 million term loans.
Parikh's ratings reflect the delay in the repayment of interest
(15-30 days) and principal (30-70 days) for last 12 months due to
its ongoing INR825.9 million capex programme to increase its
capacities coupled with pressure on receivable days. The capex is
being funded by a debt of INR550 million. Parikh's liquidity is
expected to be in pressure for FY11, until the capex gets
stabilized. Fitch notes that Parikh's businesses continue to
remain working capital intensive due to the nature of its
operations, as reflected in the working capital utilization of
100% for the past 12 months.
Fitch will continue to monitor the progress of Parikh's capex
plans and its ability to meet financial obligations. Positive
rating triggers include timely completion and stabilization of the
project, which would result in regular interest and principal
payments and an improved liquidity.
In FY09, Parikh reported net sales of INR120.6 million (FY08:
INR144.8 million), with an EBITDA margin of 36% (FY08: 39%) and a
debt/EBITDA of 5.59x (FY08: 3.89x). The company has been
reporting negative free cash flows over the last four years due to
higher working capital requirements and the ongoing capex. For
the nine months ended December 2009, Parikh reported net sales of
INR105 million, operating margins of 24.5%, interest cover of 2x
and net profit margins of 18%.
POWER SPINNING: Fitch Assigns 'B+' National Long-Term Rating
------------------------------------------------------------
Fitch Ratings has assigned India-based Power Spinning Mills a
'B+(ind)' National Long-term rating. The Outlook is Stable. The
agency has also assigned ratings of 'B+(ind)'/'F4(ind)' to PSM's
INR30 million fund-based working capital limits and INR20 million
non-fund based working capital limits, as well as a rating of
'B+(ind)' to its INR49.16 million term loans.
The ratings reflect the small size of PSM's operations and its
limited seven-year track record. Also, Fitch notes the inherent
risk of operating in a commodity market characterized by the
volatility in cotton prices, coupled with competitive pressures on
pricing in the yarn market. The ratings are also constrained by
India's cotton yarn spinning industry's gradual recovery path
following the global downturn and the power shortage in the state
of Tamil Nadu. Fitch notes that there were several instances of
delays in the servicing of bank loans in FY10.
On the other hand, the company's ratings draw strength from its
high capacity utilization and modernized spinning facility with
power saving machinery. PSM proposes to increase its capacity to
around 15,000 spindles in FY11 from 9,372 spindles as at FYE10.
New borrowings to fund this capex are expected to weaken PSM's
credit metrics; its leverage was moderate in FY10 with a
debt/EBITDA of 3.7x.
The agency could downgrade PSM's ratings if there is a sustained
increase in its debt/EBITDA of above 4.5x and/ or if there are
significant cost or time overruns in the proposed capex programme.
On the other hand, the ratings could be upgraded with a sustained
decrease in the company's debt/EBITDA of below 2.5x or a sustained
increase in its EBITDA margins of above 25%.
As per PSM's provisional FY10 figures, it reported operating
revenues of INR149.6 million (FY09: INR143.7 million), an
operating EBITDA of INR28.1 million (FY09: INR29.1m), a net profit
of INR7.2 million (FY09: INR7.8 million) and a debt/EBITDA of 3.7x
(FY09: 3.3x).
PSM is a Coimbatore-based partnership firm engaged in the
production and sale of cotton yarn with an installed capacity of
9,372 spindles as at FYE10. It also sells cloth and hosiery
manufactured by third parties on job-work basis from the yarn it
produces.
PS KRISHNAMURTHY: Fitch Assigns 'BB+' National Long-Term Rating
---------------------------------------------------------------
Fitch Ratings has assigned India's P.S. Krishnamurthy Steels
Private Limited a National Long-term rating of 'BB+(ind)'. The
Outlook is Stable. The agency has also assigned ratings to PSK's
bank facilities:
- INR1,200 million fund-based working capital limits:
'BB+(ind)'/'F4(ind)'; and
- INR1,200 million non-fund based limits: 'BB+(ind)'/'F4(ind)'.
The ratings are underpinned by the track record of PSK's promoters
in steel trading (established in 1939 as a sole proprietorship),
its financial leverage (FY10:4.9x) and its consistently profitable
operations with EBITDA margins ranging from 1.7% to 4.8% over the
last six years. The ratings are further supported by PSK's
established reputation as one of the largest steel traders in
Tamil Nadu and Pondicherry (FY10 revenues: INR6.5 billion) as well
as by its strong relationships with suppliers like Steel Authority
of India Limited and Rashtriya Ispat Nigam Limited, with whom the
company has signed procurement agreements. While arriving at the
ratings, Fitch took a consolidated view of the group, i.e. PSK
Steels, Thangam Steels and Vaibhav Steels.
Key concerns are the working capital intensive nature of PSK's
operations, an increase in competitive pressures and a
deterioration in the steel market that would restrict the
company's operating margins and pressurise its interest coverage
and leverage. The company has been known to maintain high levels
of inventory to meet its customer demands. As a result, the
utilisation levels of its bank facilities have been beyond 90% and
interest coverage has been at or below 1.5x. A crunch situation
could lead to liquidity issues. However, Fitch believes that the
promoters would be able to step in with financial infusion,
whenever required, to meet PSK's debt service on time. The
company has plans to enter the export market in FY11, and this
being a new market for the company could pose significant
challenges.
Negative rating triggers include a decline in PSK's interest
coverage to below 1.1x and an increase in its net debt/EBITDA
beyond 6x.
PSK, established in 2001, is a Chennai-based company engaged in
the trading of iron and steel products. In FY10, the company
reported revenues of INR6,391.1 million (FY09: INR5,087.6
million), an EBITDA of INR306.8 million (FY09: INR276 million)
with a net debt/EBITDA of 4.4x.
RCM INFRASTRUCTURE: CRISIL Places 'BB' Rating on INR40MM Bank Debt
------------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of RCM Infrastructure Ltd.
Facilities Ratings
---------- -------
INR40.00 Million Overdraft Facility BB/Stable (Assigned)
INR10.00 Million Letter of Credit P4+ (Assigned)
INR260.00 Million Bank Guarantee P4+ (Assigned)
The ratings reflect RCM's limited track record, exposure to
intense competition in the civil construction industry, and
susceptibility to volatility in raw material prices. These rating
weaknesses are partially offset by RCM's moderate financial risk
profile, marked by moderate gearing, healthy debt protection
metrics, and adequate liquidity; its moderate order book; and its
promoter's experience in the civil engineering industry.
Outlook: Stable
CRISIL believes that RCM will benefit over the medium term from
the healthy growth prospects for the civil construction industry
and from its promoter's industry experience. The outlook may be
revised to 'Positive' if RCM generates more-than-expected cash
flows, resulting from earlier-than-expected completion of projects
and receipt of payments from customers, or if there is increased
revenue visibility. Conversely, the outlook may be revised to
'Negative' in case of any delays in completion of projects or
receipt of payments from customers, or if the company contracts
larger-than-expected quantum of debt to capital expenditure.
About RCM Infrastructure
Incorporated as a private limited company in January 2009, RCM was
reconstituted as a public limited company in November 2009. It is
promoted by Mr. K S Chowdry. The company is a turnkey contractor
for civil engineering projects and is currently executing road
construction projects in Madhya Pradesh and a water pipeline
project in Tiruchirapally (Tamil Nadu). Since inception, RCM has
executed projects across Madhya Pradesh, Haryana, Tiruchirapally,
and Hyderabad. The company had an order book of INR2.5 billion as
on March 31, 2010.
RCM reported, on a provisional basis, a profit after tax (PAT) of
INR17.2 million on net sales of INR327.0 million for 2009-10
(refers to financial year, April 1 to March 31); it reported a PAT
of INR1.2 million on net sales of INR35.5 million for 2008-09.
SHREE RAJ: CRISIL Rates INR350 Million Cash Credit at 'B+'
----------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the cash credit
facility of Shree Raj Mahal Jewellers Pvt Ltd.
Facilities Ratings
---------- -------
INR350 Million Cash Credit Limit B+/Stable (Assigned)
The rating reflects SRMJ's limited track record in retail
operations and low operating margins because of its limited brand
appeal and intense competition in the jewellery retail segment.
These rating weaknesses are partially mitigated by SRMJ's moderate
financial risk profile, marked by zero term debt.
Outlook: Stable
CRISIL believes that Shree Raj Mahal Jewellers Pvt Ltd's financial
risk profile will remain stable over the medium term, supported by
financial support from promoters to fund expansion projects.
Nevertheless, improvement in profitability of SRJ's showroom at
Karol Bagh, New Delhi, will be critical to the improvement in the
overall business risk profile of the company. The outlook may be
revised to 'Positive' if SRJ improves its profitability
significantly, leading to improvement in its cash accruals.
Conversely, the outlook may be revised to 'Negative' if the
company incurs loss at operating or net level, because of adverse
movements in gold/diamond prices, or undertakes a large, debt-
funded capital expenditure programme, thereby weakening its
capital structure.
About Shree Raj
SRJ was promoted by Mr. Pradeep Goel and his brother, Mr. Praveen
Gupta. The company started operations in July 2009 by taking over
the partnership firm Shree Rajmahal Jewellers. SRMJ is into
wholesaling and retailing of designer gold and diamond jewellery,
and operates from Diamond Mall at Gurudwara Road, Karol Bagh, New
Delhi, which is one of the largest jewellery markets in Asia.
For 2009-10 (refers to financial year, April 1 to March 31), SRJ
reported a profit after tax (PAT) of INR5 million on net sales of
INR1092 million.
SRC UDYOG: CARE Puts 'CARE B+' Rating on INR73.3cr Long-Term Loan
-----------------------------------------------------------------
CARE Assigns 'CARE B+' and 'PR4' ratings to the bank facilities of
SRC Udyog Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- --------
Long-term Bank Facilities 73.30 'CARE B+' Assigned
Short-term Bank Facilities 3.10 'PR4' Assigned
Rating Rationale
The aforesaid ratings factor in the relatively small size of the
company, its closely held nature, short track record in
manufacturing operation, volatility in prices of raw materials &
finished goods, cyclicality of the industry, delay in repayment of
installment in the recent past, intense competition, high overall
gearing ratio, low profitability, high collection period, non
achievement of financial closure and risk of project
implementation. The ratings also takes into account the
experience of the promoter, group support, strategic location of
plants with proximity to market and source of the raw materials,
moderate financial position and established clientele base.
Successful implementation of the proposed project, infusion of
funds by the promoters in future years for strengthening financial
position, ability to improve its profitability, future prospects
for the steel industry and trend in key raw material prices are
the key rating sensitivities.
About SRC Udyog
SRC Udyog Limited, promoted by Shri Ramesh Chander Agarwala and
his son Shri Pankaj Lohariwal of SRC group of Kolkata, was
incorporated in August, 2002, under the name and style of
SRC Vyapaar Pvt. Ltd. The name of the company was subsequently
changed to SRC Udyog Pvt. Ltd. In March, 2009, the company was
converted into a public limited company and got the present
name. The company, after incorporation, was involved only in
trading of iron & steel related products and is currently, engaged
in de-coiling of HR/chequered coils into HR/chequered sheets &
plates (with a capacity of 24,000 tons per annum) in Howrah
district of West Bengal, manufacturing and selling of ferro alloys
(with a capacity of 21,500 tons per annum) in Bankura district of
West Bengal. It was also involved in trading of iron & steel
products upto FY10, however, it has stopped the trading activity
from FY11.
SUL has envisaged expansion of its existing ferro alloys unit from
21,500 mtpa to 64,500 mtpa at a cost of INR29.2 crore, proposed to
be financed at a debt equity of 2.4:1. Financial closure for the
project is yet to be achieved. Thus, SUL has project
implementation risk.
On a total income of INR244.3 crore, SUL earned a PAT of INR2.0
crore in FY10. Although long term debt-equity ratio at 0.24 as on
March 31, 2010 was comfortable, the overall gearing ratio at 1.31
as on March 31, 2010 was high. Though the current ratio as on
March 31, 2010 appears to be comfortable at 1.27, SUL is suffering
from stretched liquidity condition.
THANGAM STEEL: Fitch Assigns 'BB+' National Long-Term Rating
------------------------------------------------------------
Fitch Ratings has assigned India's Thangam Steel Limited a
National Long-term rating of 'BB+(ind)'. The Outlook is Stable.
The agency has also assigned ratings to TSL's bank facilities:
- INR650 million fund-based working capital limits:
'BB+(ind)'/'F4(ind)'; and
- INR350 million non-fund based limits: 'BB+(ind)'/'F4(ind)'.
The ratings are underpinned by the track record of TSL's promoters
in steel trading (established in 1939 as a sole proprietorship),
its consistently profitable operations since inception in 2007,
and by its financial leverage of 4.7x. The ratings are further
supported by TSL's established reputation as one of the largest
steel traders in Tamil Nadu and Pondicherry (FY10 revenues: INR2.7
billion) and the group's strong relationships with suppliers like
Steel Authority of India Limited and Rashtriya Ispat Nigam
Limited. While arriving at the ratings, Fitch took a consolidated
view of the group, i.e. PSK Steels, Thangam Steels and Vaibhav
Steels. Thangam Steels was acquired in 2008 to augment
procurement of steel products from the steel PSUs. Also, the
group plans to use TSL as a vehicle to integrate backward into
manufacturing steel products.
Key concerns are the working capital intensive nature of TSL's
operations as well as any increase in competitive pressures and
significant capex plans, both of which would restrict its
operating margins and stress its credit metrics. Fitch notes that
the company plans to invest INR50 million in capex over FY11-FY12.
The company's cash flows from operations have been negative over
the last two years with significant increases in its working
capital requirements. This situation is likely to persist over
the near-to-medium term with TSL's working capital requirements
going up further in tandem with its growth, which might pose
liquidity issues.
Negative rating triggers include a decline in TSL's interest
coverage to below 1.1x and an increase in its net debt/EBITDA
beyond 6x.
TSL, a Chennai-based company, is involved in the manufacturing
(25% of revenues) as well as in the trading of iron and steel
products (75% of revenues). In FY10, the company reported
revenues of INR2,738.4 million (FY09: INR1,629 million), an EBITDA
of INR128.5 million (FY09: INR41.2 million) with a net debt/EBITDA
of 4.5x.
VARDHMAN VITRIFIED: ICRA Assigns 'LBB-' Rating to INR11cr Loan
--------------------------------------------------------------
ICRA has assigned 'LBB-' rating to the INR 11.00 crore term loans
and INR 5.00 crore cash credit facilities of Vardhman Vitrified
Private Limited. The outlook on the long term rating is stable.
ICRA has also assigned 'A4' rating on short term scale to the
INR 1.00 crore non-fund based limits of Vardhman Vitrified Private
Limited.
The ratings are constrained by Vardhman Vitrified's relatively
small size of operations compared to organized pan India players;
limited track record of commercial operations; highly competitive
nature of the ceramic tile industry, Vardhman Vitrified's single
product portfolio and relatively lower visibility of its brand
compared to other large organized players. The ratings also take
into account the vulnerability of the profitability to the
cyclicality associated with the real estate industry. However, the
ratings favorably consider the prior experience of the promoters
in the ceramics industry, stable demand prospects for vitrified
tiles in the domestic market and ability of Vardhman Vitrified to
manufacture value added products like Glazed Vitrified Tiles going
forward.
About Vardhman Vitrified
Vardhman Vitrified Pvt. Ltd was incorporated in July 2009 and is
engaged in manufacturing of vitrified tiles. The company started
commercial production from May 2010. The company has its
production facilities at Morbi, Gujarat with a total manufacturing
capacity of 47000 MTPA. Vardhman Vitrified currently has the
capability to manufacture vitrified tiles of size 600 mm X 600 mm,
800 x 800 mm, 1000 x 1000 mm with the current set of machineries
at its production facilities. The bulk of the production being
carried out by the company is for the size 600 x 600 mm. The
company has established "Vardhman" as the brand for selling its
products in the markets.
=========
J A P A N
=========
J FRONT: Closes Matsuzakaya Store in Nagoya Amid Sales Slump
------------------------------------------------------------
Japan Today reports that J Front Retailing Co. closed on Sunday
its Matsuzakaya department store at Nagoya station amid fierce
competition.
The report says the Nagoya station store, which open in 1974,
steadily increased its sales and reached its peak in the business
year to February 1992 with sales of JPY29.7 billion. But its
business condition deteriorated amid economic downturn and due to
increased competition after another major department store chain,
Takashimaya Co., opened a store next door in 2000.
In the business year to February this year, the report adds, the
store's sales had dropped to a third of its peak figure, leading
its operator J Front to decide on the closure in time for
reconstruction of the building where the store had been a tenant.
Takashimaya is expected to occupy the new building to be completed
in fiscal 2016.
J. Front Retailing Co. Ltd. is a Japan-based holding company
primarily engaged in the operation of department stores. The
Company is also engaged in the operation of supermarkets, the
wholesale business, the mail-order business, the leasing of real
estate , the operation and leasing of parking lots, the contract
construction works for building decorations, the manufacture and
sale of furniture and the provision of credit services, among
others. It holds 100% of the stock in the department-store chains
Daimaru and Matsuzakaya Holdings.
SUNSHINE TRUST: Moody's Assigns 'Ba3' Rating on Class C Notes
-------------------------------------------------------------
Moody's Investors Service has assigned a definitive rating to
Class C Beneficial Interest of JPY13.3 billion, based on the
amendments of the transaction entered into on August 25, 2010,
backed by consumer loan receivables.
The rating addresses the expected loss posed to investors by the
final maturity date. The structure allows for timely payments of
dividends (in scheduled amounts, on scheduled payment dates), and
ultimate payment of principal by the final maturity date.
The rating and a summary of the transaction follow.
* Deal Name: Sunshine Trust
* Class: Class C Beneficial Interest
* Rating: Ba3 (sf)
* Amount: JPY13.3 billion
* Dividend: Fixed
* Payment Frequency: Quarterly
* Amortization: Pass-through
* Initial Entrustment Date: September 24, 2008
* Transfer Date of Class C Beneficial Interest: August 27, 2010
* Final Maturity Date: July 31, 2018
* Underlying Asset: Consumer loan receivables
Structure Overview
The seller, being both originator and initial servicer, entrusted
a pool of consumer loan receivables to the asset trustee, and
received the Class A Beneficial Interest, Class B Beneficial
Interest, Class C Beneficial Interest, Seller's Beneficial
Interest and Subordinated Beneficial Interest. Entrustment of the
receivables was perfected against third parties under the
Perfection Law (the Law Prescribing Exceptions, Etc. to the Civil
Code Requirement for Setting Up Against a Third Party to an
Assignment of Claims and Chattels [Law No.104, 1998]). Perfection
against obligors will not be made until certain events occur.
The seller holds the Seller's Beneficial Interest and the
Subordinated Beneficial Interest and has transferred the Class A,
the Class B, and the Class C Beneficial Interests ("Senior-
Mezzanine Beneficial Interests") to the investors. The transfer
was perfected against the relevant obligors and third parties
under Article 94 of Japan's Trust Law.
Credit enhancement is provided by the senior/subordinated
structure and available excess spread. Subordination comprises
approximately 28% of the total outstanding amount of the
receivables.
The Senior-Mezzanine Beneficial Interests will be redeemed in a
sequential, monthly, pass-through basis.
Default receivables will be used as payment in kind for dividends
on the Subordinated Beneficial Interest, while cash in an amount
equivalent to the principal balances of the defaulted receivables
will be transferred from the interest collection account to the
principal collection account (defaulted trapping mechanism).
If an early amortization event occurs, the dividend waterfall to
the Subordinated Beneficial Interest will be suspended, and excess
spread will be used to redeem the Senior-Mezzanine Beneficial
Interests. Key early amortization events include a servicer
replacement event occurring and asset performance triggers being
reached.
In preparation for servicer replacement, liquidity was provided in
the form of a cash reserve at closing. If a servicer replacement
event occurs, the asset trustee can dismiss the servicer and have
the back-up servicer take over as servicer. A back-up servicer
has been appointed.
Commingling Risk is covered by the Seller's Beneficial Interest.
Rating Opinion Summary
After examining this transaction structures, etc, Moody's assumes
that the risk of interruption to cash flow from the assets in the
event of the seller's or the asset trustee's bankruptcy is
sufficiently minimized for the purposes of achieving the rating
assigned.
Moody's estimates the expected annual default rate of the Japanese
consumer loans at approximately 15% - 23%. Moody's determined the
transaction's rating after taking into account the receivable
attributes, historical data on receivables' entire pool,
performance data for existing securitization pools, industry
trends, the transaction structure, and other elements.
Moody's examined the seller and considers the company sufficiently
capable of servicing the pool, given its substantial experience in
the consumer loan industry.
V Score
The V Score for this transaction is Medium, the same score
assigned to the Japanese consumer loan ABS sector.
Moody's has assigned ratings to securitizations of consumer loan
receivables originated by the seller since 2008. This
transaction's structure is a common one and the transaction's
complexity is similar to that of a typical consumer loan ABS.
Moody's V Scores provide a relative assessment of the quality of
available credit information and the potential variability of
various inputs in a rating determination.
The V Score ranks transactions by the potential for significant
rating changes owing to uncertainty on the assumptions due to data
quality, historical performance, the level of disclosure,
transaction complexity, modelling, and the transaction governance
that underlie the ratings, etc. V Scores apply to the entire
transaction (rather than to individual tranches).
Parameter Sensitivities
If the default rate used in determining the initial rating were
changed to 24% or 25%, the model output for the Class C Beneficial
Interest in these two scenarios would be two notches down for 24%
default rate, and three notches down for 25% default rate.
Parameter Sensitivities are not intended to measure how the rating
of the security might migrate over time; rather they are designed
to provide a quantitative calculation of how the initial rating
might change if key input parameters used in the initial rating
process differed. The analysis assumes that the deal has not
aged, and does not take into account structural features such as
sequential payment effect.
Parameter Sensitivities reflect only the ratings impact of each
scenario from a quantitative/model-indicated standpoint.
Qualitative factors are also taken into consideration in the
ratings process, so the actual ratings that would be assigned in
each case could vary from the information presented in the
Parameter Sensitivity analysis.
Regulatory Disclosures
Moody's Investors Service adopts all necessary measures so that
the information it uses in assigning a credit rating is of
sufficient quality and from reliable sources; however, Moody's
Investors Service does not and cannot in every instance
independently verify, audit or validate information received in
the rating process.
===============
M A L A Y S I A
===============
LCL CORP: Posts MYR32.69 Million Net Loss for June 30 Quarter
-------------------------------------------------------------
LCL Corporation Berhad posted a net loss of MYR32.69 million on
revenue of MYR544,000 for the quarter ended June 30, 2010,
compared with a net loss of MYR18.09 million on revenue of
MYR105.60 million in the same period last year.
At June 30, 2010, the company's consolidated balance sheet showed
MYR117.98 million in total assets and MYR513.69 million in total
liabilities resulting in a stockholders' deficit of MYR395.71
million.
The company's consolidated balance sheet at June 30, 2010, also
showed strained liquidity with MYR86.60 million in total current
assets available to pay MYR512.11 million in total current
liabilities.
A full-text copy of the Company's quarterly report is available
for free at http://ResearchArchives.com/t/s?6a51
About LCL Corp
Based in Malaysia, LCL Corporation Berhad (KUL:LCL) --
http://www.lclgroup.com.my/-- is an investment holding company
engaged in the provision of management services to the
subsidiaries. It operates in five segments: interior fit-out
services, which provides interior fit-out works and services,
including project management, design and consultancy, procurement,
construction and installation; manufacturing of furniture, which
is engaged in the manufacture of customized furniture and
fixtures, generic furniture; supply and installation of materials
and fittings, which is engaged in the supply and installation of
ceiling materials, metal fittings and fixtures and stone
materials; trading of furniture and building materials, including
interior fit-out materials, and others, which comprises investment
holding and/or property development activities of the Company and
certain subsidiaries.
LCL Corp Bhd. has been classified as an Affected Listed Issuer
under Practice Note 17 of Bursa Malaysia Securities Berhad as the
Company is unable to provide a solvency declaration to Bursa
Securities following a default in its loan payments pursuant to
Practice Note 1/2001.
TRACOMA HOLDINGS: Incurs MYR2.71 Million Net Loss in June 30 Qtr.
-----------------------------------------------------------------
Tracoma Holdings Berhad reported a net loss of MYR2.71 million on
revenues of MYR42.55 million for the three months ended June 30,
2010, compared with a net loss of MYR2.74 million on revenues of
MYR34.35 million for the same period ended June 30, 2009.
At June 30, 2010, the Company's consolidated balance sheet showed
MYR234.31 million in total assets, MYR254.28 million in total
liabilities and MYR6.69 in government grant, resulting in a
stockholders' deficit of MYR26.65 million.
The company's consolidated balance sheet at June 30, 2010, also
showed strained liquidity with MYR89.93 million in total current
assets available to pay MYR136.52 million in total current
liabilities.
A full-text copy of the Company's quarterly report is available
for free http://ResearchArchives.com/t/s?6a52
About Tracoma Holdings
Tracoma Holdings Berhad is a Malaysia-based investment holding
that is engaged in the provision of management services. The
Company is a manufacturer and supplier of automotive parts and
components. Some of its wholly owned subsidiary companies include
Tracoma Sdn. Bhd., which is engaged in manufacturing of automotive
components; Malaysian Die-Makers Sdn. Bhd., which is engaged in
die making and servicing; Trends Mecha Sdn. Bhd., which is engaged
in parts and car design, and Malaysian Farm Machinery Sdn. Bhd.,
which is engaged in assembling and distributing agricultural
tractors.
* * *
Tracoma Holdings 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 PN17's Paragraph 8.04 and Paragraph
2.1(a) as the consolidated shareholders' equity for the full
financial year ended December 31, 2009, is less than 25% of the
Company's issued and paid-up capital and such shareholders' equity
is less than MYR12 million.
====================
N E W Z E A L A N D
====================
AORANGI SECURITIES: SFO Widens Probe Into Hubbard's Firms
---------------------------------------------------------
The National Business Review reports that the Serious Fraud Office
has widened its investigation into Allan Hubbard's Aorangi
Securities to include Hubbard Management Funds, a company
uncovered by statutory managers last month.
According to NBR, SFO director Adam Feeley said the agency is
continuing its investigation after consideration of a preliminary
report on Aorangi.
NBR relates Mr. Feeley said that the recent reports by the
statutory managers had highlighted the range of issues which were
emerging the inquiries into Aorangi and Hubbard Management Funds
(HMF).
Mr. Feely, as cited by NBR, said that while the initial inquiries
and preliminary report had significantly progressed the
investigation, there were still several interviews along with
considerable financial analysis to be undertaken before a further
report would be completed for consideration.
"This is a major investigation into a very complex range of
issues. It would be foolish to think that some investor interviews
and a cursory examination of the documentation would do justice to
the issues that have been raised," NBR quoted Mr. Feely as saying.
Mr. Feeley added that there were issues in relation HMF that
required consideration.
As reported in the Troubled Company Reporter-Asia Pacific on
June 23, 2010, Bloomberg News said 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 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.
BRIDGECORP LTD: Chairman Loses Appeal on Directorship Ban
---------------------------------------------------------
Bridgecorp Group Chairman Bruce Davidson has lost a High Court
appeal against being banned from being a director or managing a
company for two and a half years, Fiona Rotherham at
BusinessDay.co.nz reports.
According to the report, Justice Forrest Miller has found that the
Registrar of Companies didn't err by refusing to hold off on the
prohibition process because criminal proceedings were pending
against Mr. Davidson.
The report notes that Mr. Davidson is one of five former directors
to have been committed to the High Court for trial in July next
year on ten charges under the criminal provisions of the
Securities Act. The charges relate to the issuing of misleading
prospectuses, the report says.
BusinessDay.co.nz relates Mr. Davidson, who had been a director of
six companies in the group and had been chair of the parent,
Bridgecorp Holdings, since 1988, was banned by the Registrar in
December last year.
The report says Mr. Davidson's appeal was the first case in 17
years since the banning law came into force, to look at the legal
test that applies.
Bridgecorp Ltd. is a New Zealand-based property development and
finance company. Bridgecorp was placed into receivership on
July 2, 2007, after failing to pay principal due to debenture
holders. John Waller and Colin McCloy, partners at
PricewaterhouseCoopers, were appointed as receivers. The
company owes around 1,800 debenture holders, which liquidators
estimate hold approximately NZ$500 million.
Bridgecorp's nine Australian companies were also placed into
voluntary administration, owing about 100 investors about
AU$24 million (NZ$27 million).
REDGROUP RETAIL: Obtains Waiver for Banking Covenant Breach
-----------------------------------------------------------
BusinessDesk reports that REDgroup Retail Pty Ltd. gained a waiver
for breaches to its banking covenants and said chairman Rod Walker
will step down.
The report relates the company said it is exploring a range of
options to strengthen its balance sheet longer term.
According to the report, Mr. Walker led the company as executive
chairman after its acquisition of the Borders book store chain.
The company named Joe Browne, finance director of electronics
manufacturer Startronics as a non-executive director, replacing
Mr. Walker.
As reported in the Troubled Company Reporter-Asia Pacific on
July 30, 2010, REDGroup Retail said it is likely to breach two out
of three of its banking covenants due this month due to tough
trading environment in the last quarter. "Following consideration
of the most recent management accounts, the Board has formed the
view that the Company is likely to breach two out of three of its
banking covenants when they are tested on August 28, 2010," the
company said in July. "Like many retailers, the company has
experienced a tough trading environment, particularly in
Australia, in the last quarter.
About REDgroup Retail
REDgroup Retail Pty Ltd -- http://www.arw.co.nz/-- is a leading
books, stationery and entertainment retailer in Australia,
New Zealand and Singapore. The Company's divisions include Angus
& Robertson, Borders, Calendar Club, Supanews and Whitcoulls.
SOUTH CANTERBURY: In Receivership; Gov't. to Repay NZ$1.6 Billion
-----------------------------------------------------------------
Trustees Executors Limited, as trustee for South Canterbury
Finance charging group, has appointed Kerryn Downey and William
Black of McGrathNicol as Receivers of the charging group's secured
assets.
"As Trustee, we have had South Canterbury Finance under heightened
surveillance since 2008. As part of that, SCF was granted a
Trustee waiver in February 2010 to allow it time to recapitalise.
Unfortunately, the Company's Directors have advised us that they
have not been successful with respect to a recapitalisation and
requested us to appoint a receiver. At this point we, as Trustee,
agree that it is the best interests of debenture, deposit and bond
holders to do that," said Yogesh Mody, Southern Regional Manager
for Trustees Executors Limited.
The Receivers will now take possession and control of the Charging
Group's assets.
South Canterbury Finance is part of the Crown Retail Deposit
Guarantee Scheme.
Separately, the Trustee said it has been working with the Crown to
facilitate an early payment, if receivers were required to be
appointed. The Trustee has entered into an agreement with
Treasury whereby all debenture, deposit and bond holders covered
under the company's Trust Deed arrangements with the Trustee will
be paid their entitlement to principal and interest up to the date
of receivership regardless of their eligibility under the Crown
Retail Deposit Guarantee Scheme.
Crown Guarantees NZ$1.6 Billion Payment
Acting Secretary to The Treasury Gabriel Makhlouf said that all
depositors and stockholders on South Canterbury Finance Ltd's
register of debt securities will be repaid by the Crown.
The Trustee for South Canterbury Finance has appointed receivers
to the company, which is a default triggering the Crown's
guarantee.
"Depositors and stockholders do not need to make a claim to The
Treasury because the Trustee has made a claim on their behalf.
All depositors and stockholders on South Canterbury Finance's
register will be repaid," Mr. Makhlouf said in a statement.
"The Trustee has been nominated as the eligible creditor under the
terms of the Guarantee and the Crown today paid the Trustee in
full. The Treasury and the Trustee are cooperating to promptly
repay all registered holders of South Canterbury Finance debt
securities," Mr. Makhlouf said.
"When an up-to-date register of debt security holders is
available, the Crown and the Trustee will arrange prompt payment
to everyone on the register. We expect an orderly and prompt
payment to South Canterbury Finance depositors and stockholders,"
Mr. Makhlouf said.
Because the Trustee has been nominated as the eligible creditor,
some depositors and stockholders who may not have previously been
repaid will now be repaid by the Crown, Mr. Makhlouf added.
"While this will incur an upfront cost, it is cheaper overall for
the Crown because it facilitates immediate payout of depositors
and avoids the need for the Crown to make future interest
payments. Criteria relating to citizenship and tax residency do
not apply and depositors and stockholders will not be assessed
using those criteria," Mr. Makhlouf said.
"The criteria for being repaid is that you are on the South
Canterbury Finance register of debt securities at the date of
default. Ordinary shares and preference shares issued by South
Canterbury Finance are not eligible for repayment."
Debt securities eligible for repayment include: call deposits,
term deposits, non-guaranteed deposits, debentures and bonds
issued by South Canterbury Finance.
The Treasury said South Canterbury Finance had around 35,000
depositors and approximately NZ$1.6 billion in deposits.
CEO Sandy Maier's Disappointment
South Canterbury Finance Chief Executive Officer Sandy Maier said
the appointment was inevitable when it became clear that
negotiations to inject fresh capital into the business could not
be completed by the August 31, 2010, deadline.
"Receivership is disappointing -- and we were working very hard up
to the last minute to avoid that outcome. We welcome the steps by
the Trustee and The Treasury to put in place an arrangement for
debenture, deposit and bond holders to be paid their full
entitlement to principal and interest regardless of their
eligibility under the Crown Retail Deposit Guarantee Scheme. This
is a very satisfactory arrangement for those investors and is
recognition of their support for the Company," Mr. Maier said in a
statement to the stock exchange.
Mr. Maier said he was aware of the enormous challenge that lay
ahead when he accepted the appointment of Chief Executive Officer.
"It was always going to be a big task. I knew that, and the
directors did too. But we thought that at the heart of the Company
there was an established business with a proud heritage that was
worth saving and we have combined our skills with those of the
Company's dedicated staff in an endeavour to achieve that goal."
Mr. Maier said he, the directors, management and staff of South
Canterbury Finance will be working closely with the receivers to
help achieve the best possible outcome from the receivership.
"There are many people who have gone far beyond what might be
expected to create a future for South Canterbury Finance. I thank
them all for their contributions and, like them, will look back on
our achievements accomplished in a very difficult environment for
the finance sector and the economy."
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on-
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance. Southbury Group
Limited holds a controlling interest in the Company. Its
subsidiaries include Ashburtin Finance Ltd, Auckland Finance Ltd,
Canterbury Finance Ltd, Coversure Guarantee Ltd, Face Finance Ltd,
Helicopter Nominees Ltd, Hotnchurch Ltd, Otage Finance Ltd,
Palmerston North Finance Ltd, Rental cars Ltd, ZSCFG Systems Ltd,
Walkato Finance Ltd and Wellington Finance Ltd.
STRATEGIC FINANCE: Has Book Value Deficit of NZ$195.5 Million
-------------------------------------------------------------
Strategic Finance's unsecured creditors are likely to get nothing,
according to the first report from liquidators John Cregten and
Andrew McKay obtained by BusinessDesk.
BusinessDesk relates the liquidators said Strategic Finance has a
book value deficit of NZ$195.5 million. The deficit is based on
the firm's estimated assets and liabilities as at May 31.
The report, citing Strategic Finance's the financial statement,
states that the company had some NZ$11.7 million in cash, assets
and accounts receivable that haven't been specifically charged and
are available to preferential creditors. Charged assets include
the net property loan book at NZ$234 million, making assets
available to secured creditors NZ$246.7 million.
Against that comes money owed to Bank of Scotland of NZ$76 million
and secured debenture stock of NZ$291.7 million, leaving a deficit
after secured creditors of NZ$121 million, BusinessDesk discloses.
When money owed to unsecured creditors is included, BusinessDesk
says, the book value deficit blows out to NZ$195.5 million.
BusinessDesk discloses that unsecured creditors are owed NZ$55.7
million in interest payments, NZ$11 million from subordinated
notes and NZ$1.46 million for unsecured deposits. Trade creditors
are owed NZ$526,000.
According to BusinessDesk, Messrs. Cregten and McKay said they
will not call a meeting of creditors because they "believe the
value of the assets of the company available for distribution to
unsecured, non-preferential creditors is likely to be zero." On
that basis, they say, a creditors' meeting would impose an
"unreasonable" additional expense on funds available to complete
the liquidation.
About Strategic Finance
Headquartered in Wellington, New Zealand, Strategic Finance
Limited (NZE:SFLHA) -- http://www.strategicfinance.co.nz/--
operates as a specialist finance company offering financial
services, primarily to the property sector. The Company also
provides specialist financial and advisory services to the
property and corporate sectors. The Company operates in
New Zealand, Australia and Pacific Islands. The Company's
operating subsidiaries include Strategic Advisory Limited,
Strategic Nominees Limited, Strategic Mortgages Limited and
Strategic Nominees Australia Limited. The Company's non-operating
subsidiary is Strategic Properties No.1 Limited. In May 2009, the
Company incorporated a subsidiary, Gulf Property Holdings Limited.
Strategic Finance Limited's parent company, Strategic Investment
Group, is wholly owned by Australian-based finance company Allco
HIT Limited.
* * *
The Troubled Company Reporter-Asia Pacific reported on March 15,
2010, that PricewaterhouseCoopers partners John Fisk and Colin
McCloy were appointed receivers of Strategic Finance Limited and
related companies Strategic Advisory Limited, Strategic Mortgages
Limited, Strategic Nominees Limited, and Strategic Nominees
Australia Limited. This ends the moratorium arrangement that has
been in place since December 2008. The companies' trustee,
Perpetual Trust, appointed receivers after SFL failed to generate
sufficient loan recoveries for its milestone payment on January 7,
2010. The company owed NZ$417 million to 13,000 investors.
Perpetual Trust Ltd. on July 27, 2010, appointed liquidators to
Strategic Finance. The High Court in Wellington made an order
that Corporate Finance's John Cregten and Andrew McKay be
appointed liquidators.
=================
S I N G A P O R E
=================
ANODE CONNECTIONS: Court to Hear Wind-Up Petition on September 3
----------------------------------------------------------------
A petition to wind up the operations of Anode Connections Pte.
Ltd. will be heard before the High Court of Singapore on
September 3, 2010, at 10:00 a.m.
Jack Investment Pte. Ltd. filed the petition against the company
on August 10, 2010.
The Petitioner's solicitors are:
Bee See & Tay
10 Anson Road #24-11
International Plaza
Singapore 079903
COMFORT RESOURCES: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Singapore entered an order on August 20, 2010,
to wind up Comfort Resources Pte Ltd's operations.
Alliance Concrete Singapore Pte Ltd filed the petition against the
company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
45 Maxwell Road #06-11
The URA Centre (East Wing)
Singapore 069118
EAGLE MONEY: Creditors Get 60.20% Recovery on Claims
----------------------------------------------------
Eagle Money Changer Pte Ltd declared the final dividend to
unsecured creditors on August 27, 2010.
The company paid 60.2010116% to the received claims.
The company's liquidator is Goh Ngiap Suan.
GRACE PHARMACEUTICALS: Creditors Get 19.2968% Recovery on Claims
----------------------------------------------------------------
Grace Pharmaceuticals Pte Ltd. declared the first and final
dividend to creditors on August 23, 2010.
The company paid 19.2968% to the received claims.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
45 Maxwell Road #06-11
The URA Centre (East Wing)
Singapore 069118
INNORESOURCES PTE: Creditors Get 100% Recovery on Claims
--------------------------------------------------------
Innoresources Pte Ltd declared the first and final dividend to
unsecured creditors on August 27, 2010.
The company paid 100% to the received claims.
The company's liquidator is Goh Ngiap Suan.
MAXIM KINGDOM: Court to Hear Wind-Up Petition on September 3
------------------------------------------------------------
A petition to wind up the operations of Maxim Kingdom Pte. Ltd.
will be heard before the High Court of Singapore on September 3,
2010, at 10:00 a.m.
Jack Investment Pte. Ltd. filed the petition against the company
on August 10, 2010.
The Petitioner's solicitors are:
Bee See & Tay
10 Anson Road #24-11
International Plaza
Singapore 079903
MECH-TECH MARINE: Creditors and Contributories to Meet on Sept. 6
-----------------------------------------------------------------
Mech-Tech Marine Pte Ltd, which is in creditors' voluntary
liquidation, will hold separate meetings for its contributories
and creditors on September 6, 2010, at 4:00 p.m. and 5:00 p.m.,
respectively, at 138 Cecil Street #05-03 in Singapore 069538.
Agenda of the meeting includes:
a. to inform the creditors/contributories that Ms. Chee Fung
Mei has been appointed by Court as the Liquidator of the
Company;
b. to lay before the meeting, a statement of the Company's
affairs; and
c. to decide whether a Committee of Inspection should be
formed.
The company's liquidator is:
Chee Fung Mei
c/o VNP International Pte Ltd
138 Cecil Street #05-03
Cecil Court
Singapore 069538
VIKING FIELD: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on August 20, 2010,
to wind up Viking Field Development Solutions Pte Ltd's
operations.
Asia Integrity Solutions Pty Ltd filed the petition against the
company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
45 Maxwell Road #06-11
The URA Centre (East Wing)
Singapore 069118
===========
T A I W A N
===========
BANK OF TAIPEI: Fitch Affirms Individual Rating at 'C/D'
--------------------------------------------------------
Fitch Ratings has affirmed Bank of Taipei's National Long-term
rating at 'A-(twn)', National Short-term rating at 'F1(twn)',
Individual rating at 'C/D' and Support rating at '5'. The Outlook
is Stable.
The affirmation of BOTP's ratings reflects its good asset quality,
satisfactory liquidity and strong core capitalization for a
private bank. It also considers the bank's weak internal capital
generation due to intense competition and the bank's high cost
base relative to its revenue.
BOTP has taken several strategic and management initiatives to
make its business model more commercially-oriented. These include
organizational changes in its staffing and compensation schemes,
as well as brand-building by adopting a new corporate name in
2009. BOTP also plans to increase the range of wealth management
products available. Fitch Ratings expects these changes, if
properly executed, to have a positive effect on BOTP's franchise
productivity in the medium term.
BOTP reported a modest profit in 2009, due to favorable investment
gains and bad debt recoveries, which more than offset the drop in
net interest income. While the bank's core earnings are expected
to improve, Fitch expects the high operating cost ratios caused by
its limited franchise to continue to constrain its operating
earnings in 2010-2011. The bank's loan book quality remained
sound throughout the global credit crisis, with a decline in its
non-performing loan ratio (0.4% at end-H110 vs. 1.0% at end-2008)
and strong loan loss reserve coverage (337.5% at end-H110). BOTP
continues to maintain strong capitalization, with a Tier 1 ratio
of 12.5% and a capital adequacy ratio of 13.5% at end-Q110.
BOTP's liquidity profile is also satisfactory, supported by the
bank's stable deposit base and conservative loan acquisition
strategy, despite its somewhat small deposit-taking franchise.
Founded in 1917 as a mutual credit organization to provide
financial services to its members, BOTP became a commercial bank
in 2007 with a market share of deposits of 0.1% at end-May 2010.
Shinkong Synthetic Fibers Corporation is its largest shareholder,
with an equity stake of around 25%.
===============
T H A I L A N D
===============
FORD MOTOR: Invests With Mazda US$350 Million in Joint Venture
--------------------------------------------------------------
Ford Motor Co. and Mazda Motor Corp. are investing US$350 million
in their joint venture plant in Thailand to revamp production of
pickup trucks, Japan Today reports.
Japan Today says the investment at AutoAlliance Thailand, a 50-50
joint venture, underlines that four years of political upheaval
has not yet deterred automakers from expanding their manufacturing
in the Southeast Asian nation, which offers incentives such as tax
breaks to foreign manufacturers.
According to the report, Mazda spokesman Kotaro Minagawa that the
latest investment won't increase production capacity at the plant
from the current 275,000 but will focus on revamping the facility.
The companies said the investment, which will bring the total at
the Thai joint venture since 1995 to US$1.85 billion, will also go
into work force training, the report adds.
"The new investment in AAT reinforces Ford Motor Co's long-term
commitment to Thailand as a strategic manufacturing base for our
global operations," the report quoted Joe Hinrichs, president of
Ford, Asia Pacific and Africa, as saying. The new production line
will boost flexibility, efficiency, quality and ecological
production, he said.
Japan Today reports that the Thai plant now exports Ford and Mazda
pickup trucks to more than 130 markets around the world. The
plant also makes passenger cars, mainly the Mazda2, sold as the
Demio in Japan, and the Ford Fiesta.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents. With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo. The Company provides financial
services through Ford Motor Credit Company.
Ford Motor's balance sheet at June 30, 2010, showed $179.75
billion in total assets, $183.29 billion in total liabilities, and
a $3.54 billion stockholders' deficit.
* * *
In August 2010, Standard & Poor's Ratings Services raised its
corporate credit rating on Ford Motor Co. and FordMotor Credit Co.
LLC to 'B+' from 'B-'. "The upgrade reflects S&P's reassessment
of Ford's business risk profile to weak from vulnerable, and its
financial risk profile to aggressive from highly leveraged," said
Standard & Poor's credit analyst Robert Schulz. S&P believes Ford
is making progress in stabilizing, and perhaps improving, its U.S.
market shares Still, S&P believes underlying business risks
remain high.
Ford Motor and its unit, Ford Motor Credit, carry 'BB-' issuer
default ratings from Fitch Ratings. In August 2010, when Fitch
raised the rating from 'B', it said, Ford's ratings reflect its
continued strong financial performance and the substantial debt
reduction accomplished in the second quarter."
Ford Motor has a 'B1' corporate family rating from Moody's.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week August 23 to August 27, 2010
---------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
ADVANCED ENERGY 9.50 01/04/2015 AUD 1.07
AINSWORTH GAME 8.00 12/31/2011 AUD 0.94
AMP GROUP FINANC 9.80 04/01/2019 NZD 1.03
ANTARES ENERGY 10.00 10/31/2013 AUD 1.82
BECTON PROP GR 9.50 06/30/2010 AUD 0.31
CBD ENERGY LTD 12.50 01/29/2011 AUD 0.13
CHINA CENTURY 12.00 09/30/2010 AUD 0.83
EXPORT FIN & INS 0.50 12/16/2019 AUD 62.89
EXPORT FIN & INS 0.50 06/15/2020 AUD 61.06
EXPORT FIN & INS 0.50 06/15/2020 AUD 62.52
FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.45
GRIFFIN COAL MIN 9.50 12/01/2016 USD 61.00
GRIFFIN COAL MIN 9.50 12/01/2016 USD 58.91
HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.68
MINERALS CORP 10.50 09/30/2011 AUD 0.25
NEW S WALES TREA 1.00 09/02/2019 AUD 62.02
NEW S WALES TREA 0.50 09/14/2022 AUD 57.98
RESOLUTE MINING 12.00 12/31/2012 AUD 0.77
SUN RESOURCES NL 12.00 06/30/2011 AUD 0.45
TREAS CORP VICT 0.50 08/25/2025 AUD 55.89
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 65.88
ZHANGJIANG GRP 3.87 06/10/2012 CNY 56.00
HONG KONG
---------
RESPARCS FUNDING 8.00 12/29/2049 USD 33.50
INDIA
-----
L&T FINANCE LTD 8.40 03/08/2013 INR 8.15
PUNJAB INFRA DB 0.40 10/15/2024 INR 25.65
PUNJAB INFRA DB 0.40 10/15/2025 INR 23.49
PUNJAB INFRA DB 0.40 10/15/2026 INR 21.53
PUNJAB INFRA DB 0.40 10/15/2027 INR 19.76
PUNJAB INFRA DB 0.40 10/15/2028 INR 18.15
PUNJAB INFRA DB 0.40 10/15/2029 INR 16.72
PUNJAB INFRA DB 0.40 10/15/2030 INR 15.42
PUNJAB INFRA DB 0.40 10/15/2031 INR 14.25
PUNJAB INFRA DB 0.40 10/15/2032 INR 13.20
PUNJAB INFRA DB 0.40 10/15/2033 INR 12.25
JAPAN
-----
AIFUL CORP 1.20 11/22/2012 JPY 59.88
AIFUL CORP 1.99 05/28/2012 JPY 64.60
AIFUL CORP 1.22 10/19/2015 JPY 45.80
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 65.12
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 64.46
SHINSEI BANK 5.62 12/29/2049 GBP 73.50
TAKEFUJI CORP 9.20 04/15/2011 USD 59.87
TAKEFUJI CORP 9.20 04/15/2011 USD 59.87
TAKEFUJI CORP 4.00 06/05/2022 JPY 52.59
MALAYSIA
--------
ADVANCED SYNERY 2.00 01/26/2018 MYR 0.07
ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.31
CRESENDO CORP B 3.75 01/11/2016 MYR 0.82
DUTALAND BHD 6.00 04/11/2013 MYR 0.35
DUTALAND BHD 6.00 04/11/2013 MYR 0.73
EASTERN & ORIENT 8.00 07/25/2011 MYR 1.03
EASTERN & ORIENT 8.00 11/16/2019 MYR 1.07
KUMPULAN JETSON 5.00 11/27/2012 MYR 1.04
LION DIVERSIFIED 4.00 12/17/2013 MYR 1.66
MITHRIL BHD 3.00 04/05/2012 MYR 0.65
NAM FATT CORP 2.00 06/24/2011 MYR 0.08
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.23
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.53
OLYMPIA INDUSTRI 2.80 04/11/2013 MYR 0.19
PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.65
REDTONE INTL 2.75 03/04/2020 MYR 0.08
RUBBEREX CORP 4.00 08/14/2012 MYR 1.01
SCOMI ENGINEERING 4.00 03/19/2013 MYR 1.05
SCOMI GROUP 4.00 03/19/2013 MYR 0.95
TATT GIAP 2.00 06/06/2015 MYR 0.70
TRADEWINDS CORP 2.00 02/08/2012 MYR 0.77
TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.10
TRC SYNERGY 5.00 01/20/2012 MYR 1.10
WAH SEONG CORP 3.00 05/21/2012 MYR 2.50
WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.29
YTL CEMENT BHD 5.00 11/10/2015 MYR 1.92
NEW ZEALAND
-----------
ALLIED FARMERS 9.60 11/15/2011 NZD 1.01
ALLIED NATIONWIDE 11.52 12/29/2049 NZD 28.00
CONTACT ENERGY 8.00 05/15/2014 NZD 1.06
FLETCHER BUI 8.50 03/15/2015 NZD 7.50
FLETCHER BUI 7.55 03/15/2011 NZD 7.25
GMT BOND ISSUER 7.75 06/19/2015 NZD 0.09
INFRATIL LTD 8.50 11/15/2015 NZD 8.90
INFRATIL LTD 8.50 11/15/2015 NZD 7.90
INFRATIL LTD 10.18 12/29/2049 NZD 60.00
KIWI INCOME PROP 8.95 12/20/2014 NZD 1.33
MARAC FINANCE 10.50 07/15/2013 NZD 1.01
NZ FINANCE HLDGS 9.75 03/15/2011 NZD 74.73
SKY NETWORK TV 4.01 10/16/2016 NZD 5.59
SOUTH CANTERBURY 10.50 06/15/2011 NZD 1.00
SOUTH CANTERBURY 10.43 12/15/2012 NZD 0.71
ST LAURENCE PROP 9.25 07/15/2010 NZD 64.27
TOWER CAPITAL 8.50 04/15/2014 NZD 1.03
TRUSTPOWER LTD 8.50 09/15/2012 NZD 6.90
TRUSTPOWER LTD 8.50 03/15/2014 NZD 7.80
TRUSTPOWER LTD 7.60 12/15/2014 NZD 1.02
TRUSTPOWER LTD 8.60 12/15/2016 NZD 1.05
UNI OF CANTERBUR 7.25 12/15/2019 NZD 1.03
VECTOR LTD 7.80 10/15/2014 NZD 1.01
VECTOR LTD 8.00 12/29/2049 NZD 7.00
SINGAPORE
---------
DAVOMAS INTL FIN 5.50 12/08/2014 USD 65.75
SENGKANG MALL 4.88 11/20/2012 USD 0.10
SENGKANG MALL 8.00 11/20/2012 USD 0.10
UNITED ENG LTD 1.00 03/03/2014 SGD 1.52
WBL CORPORATION 2.50 06/10/2014 SGD 1.83
SOUTH KOREA
-----------
COSMOS PLC CO 3.00 05/30/2011 KRW 8.91
DONGSAN DEVELOPM 3.50 05/08/2011 KRW 11.84
DONGYANG TELECOM 6.00 04/28/2012 KRW 68.55
DONGYANG TELECOM 6.00 07/17/2012 KRW 69.84
DONGYANG TELECOM 6.00 07/02/2013 KRW 44.82
HOPE KOD 1ST 8.50 06/30/2012 KRW 30.41
HOPE KOD 2ND 15.00 08/21/2012 KRW 30.43
HOPE KOD 3RD 15.00 09/30/2012 KRW 30.39
HOPE KOD 4TH 15.00 12/29/2012 KRW 30.53
HOPE KOD 6TH 15.00 03/10/2013 KRW 40.31
IBK 2008/12 ABS 25.00 06/24/2011 KRW 69.55
IBK 2008/13 ABS 25.00 06/24/2011 KRW 64.60
IBK 2008/16 ABS 25.00 06/24/2011 KRW 58.63
IBK 2008/17 ABS 25.00 06/24/2011 KRW 55.14
KB 10TH SEC SPC 23.00 01/03/2011 KRW 41.56
KB 10TH SEC SPC 20.00 01/03/2011 KRW 73.14
KB 11TH SEC SPC 23.00 07/03/2011 KRW 65.17
KB 12TH SEC SPC 25.00 01/21/2012 KRW 55.91
KB 13TH SEC SPC 25.00 07/02/2012 KRW 57.03
KB 14TH SEC SPC 23.00 01/04/2013 KRW 55.35
KDB 1ST SEC SPC 20.00 06/20/2013 KRW 72.41
KDB 5TH SEC SPC 15.00 01/04/2013 KRW 72.12
KDB 6TH SEC SPC 20.00 12/02/2019 KRW 65.36
KEB SEC 17TH SPC 20.00 12/28/2011 KRW 55.83
KEDCOM CO LTD 8.00 05/29/2012 KRW 44.83
NACF-13 ABS SPS 25.00 09/25/2010 KRW 66.04
NACF-14 ABS SPS 25.00 01/15/2011 KRW 59.19
NACF-15 ABS SPS 25.00 03/18/2011 KRW 58.25
ONE KDB 1ST ABS 7.60 06/13/2011 KRW 29.17
OSAN MYTOWN 1ST 5.64 04/16/2012 KRW 62.38
OSAN MYTOWN 2ND 5.64 04/16/2012 KRW 62.15
SAM HO INTL 6.32 03/28/2011 KRW 74.71
SHINHAN 7TH SEC 20.00 12/14/2010 KRW 21.66
SINBO 2010 1ST 15.00 07/22/2013 KRW 30.37
SINBO 2ND ABS 15.00 08/26/2013 KRW 32.07
SINBO 3RD ABS 15.00 09/30/2013 KRW 32.10
SINGOK ABS 7.50 06/18/2011 KRW 69.46
SINGOK NS ABS 7.50 06/27/2011 KRW 69.31
SMI XVI ABS SPC 9.99 04/30/2011 KRW 74.00
XROAD CO LTD 5.00 10/08/2012 KRW 31.17
VIETNAM
--------
VDB BOND 8.40 01/12/2012 VND 9.80
VIETNAM MACHINE 9.20 06/06/2017 VND 74.60
VIETNAM SHIPBUIL 9.00 04/13/2017 VND 61.66
VIETNAM-PAR 4.00 03/12/2028 USD 74.00
*********
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 ***