/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100913.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, September 13, 2010, Vol. 13, No. 180 Headlines C H I N A CHINA HUIYUAN: Shares Suspended Over Loan Covenant Breach H O N G K O N G PERFECT SHARP: Court Enters Wind-Up Order PROFIT GEM: Court Enters Wind-Up Order QUIXOTE (HK): Creditors' Proofs of Debt Due October 4 RAPID COLLECTION: Creditors' Proofs of Debt Due October 4 RETRUE ENTERPRISE: Tam Chun Wan Steps Down as Liquidator SINO CONCEPT: Court Enters Wind-Up Order SKY SUCCESS: Court Enters Wind-Up Order STARBAY INTERNATIONAL: Creditors Get 7.35% Recovery on Claims STEINBOCK ORIGINAL: Court Enters Wind-Up Order SUNBIG TEXTILE: Creditors' Proofs of Debt Due September 20 TAT CHEONG: Court Enters Wind-Up Order TELEWISE GROUP: Court Enters Wind-Up Order TEN PLUS: Court to Hear Wind-Up Petition on September 29 UNI-PAC RETAIL: Court Enters Wind-Up Order WAH KONG: Court Enters Wind-Up Order WAI FAT: Court Enters Wind-Up Order WEBCENTRAL (HK): Members' Final General Meeting Set for Oct. 4 WELL-TEX GARMENT: Court Enters Wind-Up Order WILLING KNITWEAR: Court to Hear Wind-Up Petition on October 27 YEE TAT: Creditors' Meeting Set for September 17 I N D I A AKIK TILES: CRISIL Assigns 'B' Ratings to INR85MM Cash Credit ARTISTIQUE CERAMICS: ICRA Assigns 'LBB+' Rating to INR3.45cr Loan DEEPAK RUGS: CRISIL Assigns 'P4' Ratings to Various Bank Debts GOLD STAR: CRISIL Reaffirms 'BB-' Rating on INR55MM Cash Credit GOLF CERAMICS: CRISIL Reaffirms 'D' Rating on INR95.8MM Term Loan KOHINOOR CTNL: ICRA Assigns 'LBB+' Rating to INR936cr LT Loan LEEDS INTERNATIONAL: CARE Revises Rating on Bank Debts to 'CARE D' NIRMAL LIFESTYLE: CARE Puts 'CARE BB+' Rating on INR142.32cr Loan ORISSA CONCRETE: CRISIL Reaffirms 'BB-' Rating on Cash Credit RACHANA SEEDS: ICRA Places 'LBB-' Rating on INR1.86cr Term Loan SHREE STEEL: CRISIL Rates INR25 Mil. Cash Credit Facility at 'B+' SPHEREORIGINS MULTIVISION: CRISIL Cuts Ratings on Loans to 'BB-' SRI RAMAA: ICRA Assigns 'LB' Rating to INR14.75cr Fund Based Loans SUPREME INDIA: CRISIL Reaffirms 'B+' Rating on INR92.6MM Term Loan * INDIA: RBI Asks Banks to Restructure Airline Loans J A P A N INCUBATOR BANK: Files for Bankruptcy Protection TITAN JAPAN: S&P Lowers Ratings of Classes B to D Floating Bonds N E W Z E A L A N D ALLIED FARMERS: Settles Five Mile Sale & Reduces Debt to Westpac ALLIED FARMERS: Reports Annual Operating Loss of NZ$77.58 Million DORCHESTER PACIFIC: Appoints Greg Main as New General Manager SOUTH CANTERBURY: Receivers Assure Borrowers of Continuous Funding S I N G A P O R E A & P: Court Enters Wind-Up Order ARAM GLOBAL: Creditors' Proofs of Debt Due October 11 BIAN SENG: Creditors' Proofs of Debt Due September 23 CEDRIC MOTOR: Creditors' Proofs of Debt Due September 23 CLUBMARC & COMPANY: Court Enters Wind-Up Order GREENLIFE HERBAL: Creditors' Proofs of Debt Due September 23 HT TECHNOLOGIES: Creditors' Proofs of Debt Due September 23 LEUNG CHOW: Creditors' Proofs of Debt Due September 23 PI COURT: Court Enters Wind-Up Order PROCENTEC PTE: Court to Hear Wind-Up Petition on September 24 SHIKOKU TECHNOLOGIES: Court to Hear Wind-Up Petition on Sept. 24 SUMMA SQUARE: Creditors' Proofs of Debt Due October 21 ZENECON ENGINEERING: Creditors' Proofs of Debt Due September 23 T A I W A N TACHAN SECURITIES: Fitch Affirms Issuer Default Rating at 'BB' - - - - - ========= C H I N A ========= CHINA HUIYUAN: Shares Suspended Over Loan Covenant Breach --------------------------------------------------------- Robert Fenner and Wendy Leung at Bloomberg News report that China Huiyuan Juice Group Ltd., the drinks maker Coca-Cola Co. proposed to buy before being blocked by Chinese regulators, was halted in Hong Kong trading on Friday after a report it breached loan covenants. Bloomberg, citing Reuters, says the company is seeking to amend the covenants for a $250 million three-year loan after breaching the terms. According to Bloomberg, Reuters said the drinks maker is offering a 50 basis point waiver fee to 18 lenders as it seeks to loosen covenants to allow higher debt ratios and lower multiples of interest cover. Bloomberg notes that since Coca-Cola's bid was blocked in March 2009 by China's Ministry of Commerce, Huiyuan has faced increasing competition for sales as international soft-drink makers step up investment to win customers with beverages that cater to Chinese tastes. China Huiyuan Juice Group Limited, an investment holding company, engages in the manufacture and sale of juice products primarily in the People's Republic of China. It offers fruit and vegetable juice products, as well as other beverage products under the Huiyuan brand. The company also provides mineral and bottled water, tea, milk, and dairy drinks, as well as markets and sells fruit and vegetable juices. It sells its products directly, as well as through sales distribution networks. The company was founded in 1992 and is headquartered in Beijing, the People's Republic of China. ================ H O N G K O N G ================ PERFECT SHARP: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on July 2, 2010, to wind up the operations of Perfect Sharp Limited. The company's liquidator is: Ng Kwok Wai Unit A, 14/F., JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong PROFIT GEM: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on July 4, 2007, to wind up the operations of Profit Gem International Limited. The company's liquidator is: Ng Kwok Wai Unit A, 14/F., JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong QUIXOTE (HK): Creditors' Proofs of Debt Due October 4 ----------------------------------------------------- Creditors of Quixote (Hong Kong) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by October 4, 2010, to be included in the company's dividend distribution. The company's liquidator is: Philip Brendan Gilligan 7th Floor, Alexandra House 18 Chater Road Central, Hong Kong RAPID COLLECTION: Creditors' Proofs of Debt Due October 4 --------------------------------------------------------- Creditors of Rapid Collection Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by October 4, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on September 2, 2010. The company's liquidators are: Puen Wing Fai Lo Yeuk Ki Alice 6/F., Kwan Chart Tower 6 Tonnochy Road Wanchai, Hong Kong RETRUE ENTERPRISE: Tam Chun Wan Steps Down as Liquidator -------------------------------------------------------- Tam Chun Wan stepped down as liquidator of Retrue Enterprise Limited on August 26, 2010. SINO CONCEPT: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on August 5, 2010, to wind up the operations of Sino Concept Development Limited. The company's liquidator is: Ng Kwok Wai Unit A, 14/F., JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong SKY SUCCESS: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on July 27, 2010, to wind up the operations of Sky Success Management Limited. The company's liquidator is: Ng Kwok Wai Unit A, 14/F., JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong STARBAY INTERNATIONAL: Creditors Get 7.35% Recovery on Claims ------------------------------------------------------------- Starbay International Limited, which is in liquidation, paid the second and interim dividend to its unsecured creditors on Aug. 27, 2010. The company paid 7.35% for ordinary claims. The company's liquidators are: Stephen Briscoe 602 The Chinese Bank Building 61-65 Des Voeux Road Central, Hong Kong STEINBOCK ORIGINAL: Court Enters Wind-Up Order ---------------------------------------------- The High Court of Hong Kong entered an order on May 18, 2009, to wind up the operations of Steinbock Original German Sausages Limited. The company's liquidator is: Ng Kwok Wai Unit A, 14/F., JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong SUNBIG TEXTILE: Creditors' Proofs of Debt Due September 20 ---------------------------------------------------------- Creditors of Sunbig Textile Trading Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Sept. 20, 2010, to be included in the company's dividend distribution. The company's liquidators are Kong Chi How Johnson and Lo Siu Ki. TAT CHEONG: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on December 27, 2007, to wind up the operations of Tat Cheong Hong Builders and Engineers Limited. The company's liquidator is: Ng Kwok Wai Unit A, 14/F., JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong TELEWISE GROUP: Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on July 16, 2010, to wind up the operations of Telewise Group Limited. The company's liquidator is Lau Siu Hung. TEN PLUS: Court to Hear Wind-Up Petition on September 29 -------------------------------------------------------- A petition to wind up the operations Ten Plus Limited will be heard before the High Court of Hong Kong on September 29, 2010, at 9:30 a.m. Olympic Diamond Corp. filed the petition against the company on July 26, 2010. The Petitioner's solicitors are: Mayer Brown JSM 18th Floor, Prince's Building 10 Chater Road, Central Hong Kong UNI-PAC RETAIL: Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on April 21, 2010, to wind up the operations of Uni-Pac Retail Packaging Limited. The company's liquidator is: Ng Kwok Wai Unit A, 14/F., JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong WAH KONG: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on August 14, 2008, to wind up the operations of Wah Kong Paper Products Limited. The company's liquidator is: Ng Kwok Wai Unit A, 14/F., JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong WAI FAT: Court Enters Wind-Up Order ----------------------------------- The High Court of Hong Kong entered an order on July 2, 2010, to wind up the operations of Wai Fat Resources Limited. The company's liquidator is Lau Siu Hung. WEBCENTRAL (HK): Members' Final General Meeting Set for Oct. 4 -------------------------------------------------------------- Members of Webcentral (Hong Kong) Limited will hold their final general meeting on October 4, 2010, at 10:00 a.m., at 62/F One Island East, 18 Westlands Road, Island East, in Hong Kong. At the meeting, Stephen Liu Yiu Keung and David Yen Ching Wai, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. WELL-TEX GARMENT: Court Enters Wind-Up Order -------------------------------------------- The High Court of Hong Kong entered an order on May 12, 2010, to wind up the operations of Well-Tex Garment Limited. The company's liquidator is: Ng Kwok Wai Unit A, 14/F., JCG Building 16 Mongkok Road, Mongkok Kowloon, Hong Kong WILLING KNITWEAR: Court to Hear Wind-Up Petition on October 27 -------------------------------------------------------------- A petition to wind up the operations of Willing Knitwear Factory Limited will be heard before the High Court of Hong Kong on October 27, 2010, at 9:30 a.m. DBS Bank (Hong Kong) Limited filed the petition against the company on Aug. 23, 2010. The Petitioner's solicitors are: Siao, Wen and Leung 7th Floor Wing On Central Building 26 Des Voeux Road Central Hong Kong YEE TAT: Creditors' Meeting Set for September 17 ------------------------------------------------ Creditors of Yee Tat Plumbing Drainage Engineering Company Limited will hold a meeting on September 17, 2010, at 10:00 a.m., at Room 103, 1/F., Duke of Windsor Social Service Building, No. 15 Hennessy Road, Wanchai, in Hong Kong. At the meeting, Chan Kin Hang Danvil, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= AKIK TILES: CRISIL Assigns 'B' Ratings to INR85MM Cash Credit ------------------------------------------------------------- CRISIL has assigned its 'B/Negative' rating to the bank facilities of Akik Tiles Ltd, which is part of the Swastik group. The rating reflects the Swastik group's below-average financial risk profile, marked by a high gearing and limited financial flexibility. These rating weaknesses are partially offset by Swastik group's diversified product portfolio with increasing proportion of value- added products. Facilities Ratings ---------- ------- INR85.0 Million Cash Credit Limit B/Negative (Assigned) INR72.2 Million Term Loan B/Negative (Assigned) INR37.8 Million Proposed Long Term B/Negative (Assigned) Bank Facility For arriving at its rating, CRISIL has combined the business and financial risk profiles of Akik, Gladder Ceramics, and Swastik Ceracon. This is because the three entities, collectively referred to herein as the Swastik group is in same line of business, under a common management, and have centralized business functions of finance, procurement of clay and marketing of tiles. Further all the three entities are likely to be merged in the near term. Outlook: Negative CRISIL believes that the Swastik group's liquidity will remain weak over the medium team as its net cash accruals are expected to remain low vis-�-vis its maturing term loan obligations. Also, the group's gearing is expected to remain high because of large borrowings to meet capital expenditure and working capital requirements. The outlook may be revised to 'Stable' in case the group generates higher-than-expected net cash accruals over the medium term. Conversely, the rating may be downgraded in case of steeper-than-expected decline in the Swastik group's profitability and deterioration in its financial risk profile. About Swastik group The Swastik group manufactures ceramic, porcelain, and vitrified floor tiles, with a daily production capacity of 24,000 to 25,000 square metres per day. The group's manufacturing units are located in the 'Ceramic Zone' at Himmatnagar and Mehsana in North Gujarat. The group is present in all three major tile segments: ceramic tiles (through Akik Tiles Ltd), porcelain tiles (Gladder Ceramics), and vitrified tiles (Marbolite). Products under all the three segments are sold under the Swastik Tiles brand. Akik's profit after tax (PAT) is estimated at around INR25.6 million on net sales of INR311.7 million for 2008-09 (refers to financial year, April 1 to March 31), against a reported net loss of INR5.8 million on net sales of INR159.0 million for 2007-08. ARTISTIQUE CERAMICS: ICRA Assigns 'LBB+' Rating to INR3.45cr Loan ----------------------------------------------------------------- ICRA has assigned an 'LBB+' rating to the INR3.45 crore term loans and INR3.00 crore cash credit facility of Artistique Ceramics Private Limited. The outlook for the rating is stable. ICRA has also assigned an A4+ rating to the INR0.50 crore, short-term, non- fund based, bank guarantee limits of ACPL. The ratings are constrained by the relatively small size of operations of the company in comparison with other organized ceramic tile manufacturers, the vulnerability of the profitability and cash flows due to the cyclical nature of the real estate sector and increasing prices of gas and its availability, which is a key cost component for the ceramic industry. The ratings have however positively considered the association of ACPL with an established player like Asian Granito India Limited, which has resulted in benefits like streamlining of ACPL's production processes, entire production of ACPL being procured and marketed by AGIL under its established brand "Bonzer 7" and financial support in the form of advances for finished goods which has lead to ACPL again becoming profitable. The rating also takes into account recent capacity expansion which is likely to yield growth in volumes going forward and the revival of the real estate sector resulting in a promising outlook for the ceramic industry. About Artistique Ceramics Artistique Ceramics Private Limited is engaged in the business of manufacturing ceramic wall tiles. The company was incorporated in May, 2004 by Mr. Ravindra Gupta and his family. In December 2007, the management of the company was taken over by relatives of promoters of Asian Granito India Limited and is now managed by Mr. Dipak Patel and Mr. Vipul Patel. The company has its manufacturing facility located in Kheda, Gujarat and manufactures wall tiles of sizes 10"x16", 8"x12" and 8"x16". The company has recently installed a new kiln which has doubled its manufacturing capacity to 24000 MTPA. The entire production of ACPL is bought by AGIL and marketed under the brand name of "Bonzer 7". DEEPAK RUGS: CRISIL Assigns 'P4' Ratings to Various Bank Debts -------------------------------------------------------------- CRISIL has assigned its 'P4' ratings to Deepak Rugs' bank facilities. Facilities Ratings ---------- ------- INR30.00 Million Packing Credit P4 (Assigned) INR20.00 Million Foreign Demand P4 (Assigned) Bill Purchase INR1.00 Million Bill Discounting P4 (Assigned) The ratings reflect Deepak Rugs' small scale of operations with exposure to risks related to high geographic and customer concentration in revenue profile, and weak financial risk profile, marked by low net worth and weak debt protection measures, and working-capital-intensive nature of operations. These rating weaknesses are partially offset by the benefits that Deepak Rugs derives from its promoters' experience in floor coverings business. About Deepak Rugs Set up in 1999 as a proprietorship firm by Mr. Surendra Kumar Srivastava, Deepak Rugs was reconstituted as a partnership firm in the same year, with Mr. Deepak Srivastava, the founder's son, joining the firm as a partner. The firm manufactures and exports floor coverings, mainly handmade woollen rugs and carpets (tufted and durries) at its facilities at Bhadohi (Uttar Pradesh). Mr. Surendra Kumar Srivastava has been in this line of business prior to setting up Deepak Rugs, through a partnership firm, Deepak Carpets. Deepak Rugs reported a profit after tax (PAT) of INR6.4 million on net sales of INR77.8 million for 2008-09 (refers to financial year, April 1 to March 31) against a loss of INR6.8 million on net sales of INR51.1 million for 2007-08. GOLD STAR: CRISIL Reaffirms 'BB-' Rating on INR55MM Cash Credit --------------------------------------------------------------- CRISIL has revised its rating outlook on the long-term bank facility of Gold Star Steels Pvt Ltd's, which is part of the Orissa Concrete group, to 'Stable' from 'Negative' while reaffirming the rating at 'BB-'; the rating on the short-term facilities has been upgraded to 'P4+'from 'P4'. Facilities Ratings ---------- ------- INR55 Million Cash Credit Limits BB-/Stable (Reaffirmed, Outlook Revised from 'Negative') INR25 Million Letter of Credit & P4+ (Upgraded from 'P4') Bank Guarantee The rating actions reflect CRISIL's belief that the group will maintain a stable financial risk profile together with adequate liquidity. The rating actions also reflect the fact that the risks associated with the group's contingent liabilities have reduced because the group has provided for these liabilities in its books over 2008-09 (refers to financial year, April 1 to March 31) and 2009-10 without adversely affecting its stable financial risk profile. The ratings continue to reflect the Orissa Concrete group's small scale of operations in the concrete sleepers industry and weak financial risk profile marked by a small net worth. These rating weaknesses are partially offset by the group's moderate business risk profile, marked by integrated nature of operations and long association with Indian Railways. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of GSSPL and Orissa Concrete & Allied Industries Ltd. This is because the two companies, together referred to as the Orissa Concrete group, share a common management and have operational linkages. Outlook: Stable CRISIL believes that the Orissa Concrete group will continue to benefit from the sustained demand from the Indian Railways over the medium term. The outlook may be revised to 'Positive' if the group reports significant growth in its revenues and profitability, or if its net worth increases because of equity infusion. Conversely, the outlook may be revised to 'Negative' if the group reports low profit margins, or undertakes large debt- funded capital expenditure (capex) programmes. Update OCAIL withdrew its entire shareholding in GSSPL and sold it to the promoters of the Orissa Concrete group in 2009-10. However, GSSPL will continue to be a backward integration unit for OCAIL wherein GSSPL will continue to supply the entire requirement of inserts and about 50 per cent of the requirement of high-tensile steel (HTS) wires to OCAIL. The Orissa Concrete group continues to cater to the Indian Railways, which contributes about 80 per cent to the group's revenues. The group has no major capex plan for the medium term. The Orissa Concrete group's performance for 2009-10 has been in line with CRISIL's expectations. The group's liquidity is likely to remain adequate, backed by steady accruals, no major capex plan, and no term loan repayment obligations. The group reported, on provisional basis, a profit after tax (PAT) of INR7 million on net sales of about INR677 million for 2009-10, against a PAT of INR5 million on net sales of INR615 million for 2008-09. About Gold Star Set up in 1981 by Mr. Navin Agarwal, OCAIL manufactures concrete sleepers used in railway tracks. The company's facility at Raipur has capacity to manufacture 0.6 million sleepers per annum. GSSPL manufactures inserts and HTS wires, which it supplies, largely to OCAIL. GOLF CERAMICS: CRISIL Reaffirms 'D' Rating on INR95.8MM Term Loan ----------------------------------------------------------------- CRISIL ratings on Golf Ceramics Ltd's bank facilities continue to reflect delays by GCL in servicing its term loans. The delays have been caused by GCL's weak liquidity, led by delays in receivables collection. Facilities Ratings ---------- ------- INR22.5 Million Cash Credit Limit D (Reaffirmed) INR95.8 Million Rupee Term Loan D (Reaffirmed) INR8.2 Million Bank Guarantee P5 (Reaffirmed) GCL has small net worth and small scale of operations. However, its revenues are expected to remain stable over the medium term, backed by experience of its promoters in the sanitaryware business. Update GCL's liquidity continues to be weak because of its stretched debtor levels. Moreover, the company's bank limits were almost fully utilised, with some instances of the company overdrawing the limits, over the six months through August 2010. GCL has been delaying its monthly instalment payments in recent months, primarily because of inferior collection management, despite healthy cash accruals. Moreover, the company also has delayed interest payments in some months. About Golf Ceramics Set up in 2006, GCL manufactures vitreous sanitaryware such as washbasins and closets. The company commenced commercial operations in April 2008, after the completion of the construction of its plant with capacity of 15000 tonnes per annum. Before the plant began manufacturing operations, GCL used to trade in tiles and sanitaryware. KOHINOOR CTNL: ICRA Assigns 'LBB+' Rating to INR936cr LT Loan ------------------------------------------------------------- ICRA has assigned an 'LBB+' rating to the INR936 crore long term fund based bank facilities of Kohinoor CTNL Infrastructure Company Private Limited. The outlook assigned to the long term rating is stable. The rating is constrained by significant project execution risk on account of nascent stage of project construction and market risk on account of large amount of unsold/unleased area in the project in view of significant anticipated supply of commercial space in the Central Mumbai region. The rating also takes note of the fact that there is a moratorium period of only 6 months for debt repayment from the scheduled project completion date, which coupled with the steep construction timeline increases the probability of cash flow mismatches in debt servicing in case of a delay in project execution or a slowdown in sale/lease of commercial space in the project. The rating, however, takes comfort from the established track record of the promoters in the real estate market of Mumbai, favorable location of the project, anchor sale of ~0.3 msf in the project to the IL&FS and Kohinoor Group and the fact that all major approvals are in place. The rating also takes note of the low funding risk for the project as debt tie-up for the project has been achieved and significant amount of equity has been infused upfront. Going forward, the company's ability to execute the project as per schedule and achieve the projected sale/lease tie-up in a timely manner remain the key rating sensitivities. About Kohinoor CTNL Incorporated in August 2005, KCICPL is a Special Purpose Vehicle (SPV) promoted by the Mumbai based Kohinoor Group to undertake the development of a commercial cum retail project in the Dadar area of Mumbai. At present, the Kohinoor Group holds 60% of the share capital of KCICPL through two group companies ? Kohinoor Planet Constructions Private Limited (12%) (rated LBB+/A4+ by ICRA) and Kohinoor Projects Pvt Ltd (48%). The balance 40% is held by the IL&FS Group through IIRF India Realty VII Ltd (IIRF-7) (39%) and IL&FS Trust Company Limited (1%). IIRF-7 is a real estate focused fund managed by IL&FS Investment Managers Limited. The project entails the development of ~1.47 msf of leasable/saleable area of high end commercial (~1.39 msf) and retail space (~0.07 msf) on the erstwhile Kohinoor Mills land in central Mumbai. The land for the project (~4.8 acres) was purchased by a consortium comprising of the Kohinoor Group and IL&FS in October from NTC through an auction process. The construction for the project commenced in June 2009 and is estimated to be completed by March 2012. The total project cost is estimated at INR 2100 to be funded by bank debt of INR 936 Crore (45%), equity of INR 500 Crore (24%) and sale advances of INR 664 Crore (32%). LEEDS INTERNATIONAL: CARE Revises Rating on Bank Debts to 'CARE D' ------------------------------------------------------------------ CARE revises the rating assigned to bank facilities of Leeds International. Amount Facilities (INR cr.) Ratings ---------- --------- ------- Long-term Bank Facilities 11.34 'CARE D' Revised from 'CARE C' Short-term Bank Facilities 12.25 'PR5' Revised from 'PR4' Rating Rationale The revision in ratings takes into account the continuing tight liquidity position and ongoing delays by Leeds in servicing its debt obligations. Leeds was formed on April 15, 2005 as a partnership firm and is involved in manufacturing and export of knitted hosiery garments at its facility in Tirupur. The installed capacity of the firm was 35 lakh units per annum as on March 31, 2010. During FY10 (provisional), Leeds posted a total income of INR20 crore and incurred a net loss of INR0.98 crore. The overall gearing of the firm stood at 5.91x as on March 31, 2010. NIRMAL LIFESTYLE: CARE Puts 'CARE BB+' Rating on INR142.32cr Loan ----------------------------------------------------------------- CARE assigns 'CARE BB+' and 'PR4' rating to the bank facilities of Nirmal Lifestyle Ltd. Amount Facilities (INR cr.) Ratings ---------- --------- ------- Long-term Bank Facilities 142.32 'CARE BB +' Assigned Short- term Bank facilities 38.60 'PR 4' Assigned Rating Rationale The ratings are constrained by NLL's high gearing levels limiting its financial flexibility, high dependence on advances from customers in respect of projects undertaken by the company, substantial contribution to the revenue from FY12 onwards expected to come from the projects which are either at a nascent stage or are yet to be launched and the inherent project execution risk. The ratings are further constrained by NLL's presence mainly in a single geographic location, exposing it to concentration risk. The ratings, however, derive strength from NLL's good brand image in the Mulund region, the company's experienced management, high operating margins due to low cost of land and availability of land bank in eastern suburbs, having a good development potential. The ratings also factor in repayment of part of the existing loan through lease rentals from Phase I of the operational mall at Mulund. The ratings further take cognizance of a large proportion of Letters of Intent (LOIs) signed for Phase II of the mall which is under construction and the provision to convert the construction loan into loan secured against future lease rentals at the discretion of the lender, once this Phase becomes operational. The ability of NLL to complete the ongoing/proposed projects as scheduled, lease rental rates and capital values and the demand- supply scenario of retail/residential/commercial space in Mulund and Kalyan in the future remains the key rating sensitivities. About Nirmal Lifestyle Nirmal Lifestyle Limited is the flagship company of Nirmal Group. It was incorporated in the year 1999 to undertake residential and commercial construction activities. NLL is a closely-held company. Till March 2010, the group has developed about 3.01 msf of saleable area in Mumbai and had land banks in the eastern suburbs of Mumbai with the development potential of 14 msf. During FY09, NLL reported a total income of INR162.63 crore, and earned a PAT of INR33.3 crore. ORISSA CONCRETE: CRISIL Reaffirms 'BB-' Rating on Cash Credit ------------------------------------------------------------- CRISIL has revised its rating outlook on the long-term bank facility of Orissa Concrete & Allied Industries Ltd, which is part of the Orissa Concrete group, to 'Stable' from 'Negative' while reaffirming the rating at 'BB-'; the rating on the short-term facilities has been upgraded to 'P4+' from 'P4'. Facilities Ratings ---------- ------- INR90 Million Cash Credit Limits BB-/Stable (Reaffirmed, Outlook revised from Negative) INR30 Million Proposed LT Loan BB-/Stable (Reaffirmed, Bank Loan Facility Outlook revised from Negative) INR40 Million Letter of Credit P4+ (Upgraded from 'P4') & Bank Guarantee The rating actions reflect CRISIL's belief that the group will maintain a stable financial risk profile together with adequate liquidity. The rating actions also reflect the fact that the risks associated with the group's contingent liabilities have reduced because the group has provided for these liabilities in its books over 2008-09 (refers to financial year, April 1 to March 31) and 2009-10 without adversely affecting its stable financial risk profile. The ratings continue to reflect the Orissa Concrete group's small scale of operations in the concrete sleepers industry and weak financial risk profile marked by a small net worth. These rating weaknesses are partially offset by the group's moderate business risk profile, marked by integrated nature of operations and long association with Indian Railways. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of OCAIL and Gold Star Steel Pvt Ltd (GSSPL). This is because the two companies, together referred to as the Orissa Concrete group, share a common management and have operational linkages. Outlook: Stable CRISIL believes that the Orissa Concrete group will continue to benefit from the sustained demand from the Indian Railways over the medium term. The outlook may be revised to 'Positive' if the group reports significant growth in its revenues and profitability, or if its net worth increases because of equity infusion. Conversely, the outlook may be revised to 'Negative' if the group reports low profit margins, or undertakes large debt- funded capital expenditure (capex) programmes. Update OCAIL withdrew its entire shareholding in GSSPL and sold it to the promoters of the Orissa Concrete group in 2009-10. However, GSSPL will continue to be a backward integration unit for OCAIL wherein GSSPL will continue to supply the entire requirement of inserts and about 50 per cent of the requirement of high-tensile steel (HTS) wires to OCAIL. The Orissa Concrete group continues to cater to the Indian Railways, which contributes about 80 per cent to the group's revenues. The group has no major capex plan for the medium term. The Orissa Concrete group's performance for 2009-10 has been in line with CRISIL's expectations. The group's liquidity is likely to remain adequate, backed by steady accruals, no major capex plan, and no term loan repayment obligations. The group reported, on provisional basis, a profit after tax (PAT) of INR7 million on net sales of about INR677 million for 2009-10, against a PAT of INR5 million on net sales of INR615 million for 2008-09. About Orissa Concrete Set up in 1981 by Mr. Navin Agarwal, OCAIL manufactures concrete sleepers used in railway tracks. The company's facility at Raipur has capacity to manufacture 0.6 million sleepers per annum. GSSPL manufactures inserts and HTS wires, which it supplies, largely to OCAIL. RACHANA SEEDS: ICRA Places 'LBB-' Rating on INR1.86cr Term Loan --------------------------------------------------------------- ICRA has assigned an 'LBB-' rating to the INR1.86 crore term loan and INR9.0 crore cash credit facilities of Rachana Seeds Industries. The long term rating has been assigned stable outlook. ICRA has also assigned an 'A4' rating to the INR13.50 crore short term fund based facilities and INR1.50 crore short term non fund based facilities of RSI. The combined utilization of cash credit facilities and short term fund based facilities should not exceed INR16.50 crore. The assigned rating takes into account long standing experience of promoters in the commodity trading and processing industry combined with the location advantages for the company arising out of proximity to raw material supplies with the company being located in leading groundnut producing Saurashtra region of Gujarat. The ratings are however constrained by small scale of operations of the company in a highly competitive and fragmented industry. The company has highly leveraged capital structure with liquidity profile being further constrained by low profitability indicators. Further the profitability of operations is highly vulnerable to regulatory framework with regards to export incentives and agro climatic conditions in the country. About Rachana Seeds RSI, a partnership firm of Mr. Vikram Duvani and his mother, was established in 1985 in Junagarh district of Gujarat. It is engaged in processing and trading of Agro based commodities from Saurashtra region in domestic as well as international market with more than 90% of revenues coming from groundnut processing. Recent Result In FY10, RSI has reported a net profit of INR0.72 crore on an operating income of INR67.5 crore. SHREE STEEL: CRISIL Rates INR25 Mil. Cash Credit Facility at 'B+' ----------------------------------------------------------------- CRISIL has assigned its 'B+/Stable/P4' ratings to Shree Steel Impex's bank facilities. Facilities Ratings ---------- ------- INR25.0 Million Cash Credit Facility B+/Stable (Assigned) INR32.5 Million Letter of Credit Facility P4 (Assigned) The ratings reflect SSI's weak financial risk profile, marked by a small net worth and highly leveraged capital structure, and exposure to risks related to small scale of operations, intense competition and cyclicality in the in the steel industry. These rating weaknesses are partially offset by experience of SSI's promoters and the firm's established relationships with customers and suppliers. Outlook: Stable CRISIL believes that SSI will continue to benefit from its promoters' experience in the steel trading industry, over the medium term. The firm's credit risk profile, however, is expected to remain constrained because of its weak financial risk profile, marked by a leveraged capital structure. The outlook may be revised to 'Positive' if SSI strengthens its capital structure and improves its scale of operations and profitability. Conversely, the outlook may be revised to 'Negative' if SSI's working capital management, particularly inventory management, deteriorates, leading to pressures on its liquidity. Based in Mumbai, SSI was promoted by Mr. Pukharaj Shah and other family members in 2003 as a partnership firm. Mr. Shah has been involved in the steel trading business for more than two decades. SSI trades in steel products, such as steel rods, bars, sheets, and pipes, both stainless steel and mild steel; most of its products find application in the automobile industry. SSI reported an estimated profit after tax (PAT) of INR1.0 million on an estimated net sales of INR336.38 million for 2009-10 (refers to financial year, April 1 to March 31) against a PAT of INR0.90 million on net sales of INR383.45 million for 2008-09. SPHEREORIGINS MULTIVISION: CRISIL Cuts Ratings on Loans to 'BB-' ---------------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Sphereorigins Multivisions Pvt Ltd to 'BB-/Negative' from 'BB/Stable'. Facilities Ratings ---------- ------- INR44.0 Million Long-Term Loan BB-/Negative (Downgraded from 'BB/Stable') INR150.0 Million Cash Credit BB-/Negative (Downgraded from 'BB/Stable') INR126.0 Million Proposed LT BB-/Negative (Downgraded from Bank Loan Facility 'BB/Stable') The downgrade reflects SMPL's lower-than-expected revenues and cash accruals in 2009-10, along with expected deterioration in the company's financial risk profile because of its planned debt- funded diversification into the hotel business. Lower accruals and debt-funded capital expenditure (capex) are likely to result in high gearing, and low interest coverage and net cash accruals to total debt (NCATD) ratios. The rating reflects SMPL's weak financial risk profile, marked by low networth, high gearing and weak debt protection measures, exposure to risks inherent in the television (TV) content production business, and large working capital requirements. These rating weaknesses are partially offset by SMPL's established market position as a TV content production house, the commissioned model of its operations, and good demand prospects for TV content producers. Outlook: Negative CRISIL believes that SMPL's liquidity will weaken over the medium term because of uncertainties in generation of cash accruals arising out of delays in realization and in launch of new shows by SMPL. The company's debt-funded diversification into the hotel business is expected to increase its gearing over the medium term. The rating may be downgraded if SMPL faces production cost overruns, resulting in lesser-than-expected cash accruals, switches over to a riskier business model, or undertakes a larger- than-expected debt-funded capex programme. Conversely, the outlook may be revised to 'Stable' if SMPL generates more-than- expected revenues, resulting in increase in cash accruals. About Sphereorigins Multivisions SMPL is a TV content producer. It has produced 16 TV serials and a telefilm since 2002 in genres such as family drama, detective series, fantasy, and horror. It focuses on general entertainment channels (GECs). SMPL has established good relations with channel broadcasters such as Star India Pvt Ltd and Zee Television Ltd. SMPL has also added newer channels such as 9X (Inx India Pvt Ltd), NDTV Imagine, and Colours (Viacom 18 Media Pvt Ltd) to its channel broadcaster list. Its ongoing portfolio includes social dramas such as Tere Mere Sapne on Star Plus, Balika Vadhu on Colors, Ek Chutki Asmaan on Sahara, and Jyoti on NDTV Imagine. The company has four more TV serials in the pipeline; these will be telecast by the end of 2010-11 (refers to financial year, April 1 to March 31). SMPL reported, on provisional basis, a profit after tax (PAT) of INR17.2 million on net sales of INR669.2 million for 2009-10, against a PAT of INR18.4 million on net sales of INR599.1 million for 2008-09. SRI RAMAA: ICRA Assigns 'LB' Rating to INR14.75cr Fund Based Loans ------------------------------------------------------------------ ICRA has assigned 'LB' rating to INR14.75 crore fund based and INR0.05 crore non-fund based facilities of Sri Ramaa Cotton Ginning and Oil Mills. The assigned rating is severely constrained by the consistent lack of financial discipline to service the debt obligations by RCG. The rating is also constrained by RCG's low profit margins. ICRA notes the company's vulnerability to adverse regulatory changes as cotton industry is one of the regulated industries; any hike in MSP would severely dent the operating profitability. Given the low value added nature of operations low barriers to entry, the industry is fragmented and highly competitive in nature. ICRA also notes that the company has limited financial flexibility due to highly leveraged capital structure as evident from a gearing of 2.78 times as of March 31, 2010. The rating, however, takes into account the experience of the promoters in the ginning industry. The proximity to the cotton growing region coupled with better quality output (lint) from the TMC unit stands in favor of the company. The geographically diversified supplier base of RCG enables it to operate its plant for 9 months. This is considered as a positive factor. For RCG, March, April and May are critical months as bulk of the ginning activity takes place in these months. Ginning mills in Andhra Pradesh faced significant cuts in the supply of power due to a shortfall in power in the state during these three months. This had led to lower capacity utilization of RCG. About Sri Ramaa RCG was incorporated in 2008 and has a TMC cotton ginning mill in Guntur district of AP. In addition to better quality output, TMC unit has other advantages such as higher production speeds and low manpower requirement. RCG is promoted by Mr. D. Ram Mohan Rao who has over 4 decades of experience in cotton ginning and trading. The ginning mill has a current installed capacity of 48 gins which can produce 71,153 bales of cotton lint during the cotton season each year. SUPREME INDIA: CRISIL Reaffirms 'B+' Rating on INR92.6MM Term Loan ------------------------------------------------------------------ CRISIL ratings on Supreme India Impex Ltd's bank facilities continue to reflect Supreme's weak financial risk profile; the ratings also reflect Supreme's exposure to risks relating to customer concentration in its revenues. These weaknesses are, however, partially offset by the benefits that Supreme derives from its promoters' experience in the textile industry, and improvement in its operational profile backed by forward integration initiatives. Facilities Ratings ---------- ------- INR10.0 Million Cash Credit Limit B+/Stable (Reaffirmed) INR92.6 Million Term Loan B+/Stable (Reaffirmed) INR110.0 Million Packing Credit P4 (Reaffirmed) INR360.0 Million Bill Purchase/ P4 (Reaffirmed) Discounting Outlook: Stable CRISIL believes that Supreme will maintain healthy growth in revenue over the medium term. Supreme's financial risk profile may, however, remain constrained by weak debt service coverage and high gearing. The outlook may be revised to 'Positive' if significant improvement in operating margin leads to stronger cash accruals, and if Supreme enhances the diversity in its customer profile. Conversely, the outlook may be revised to 'Negative' if the company takes on substantial debt to fund capital expenditure, or if slowdown in growth in revenues leads to reduced cash accruals. Update Supreme's sales increased to INR1390 million in 2009-10 (refers to financial year, April 1 to March 31) from INR1070 million in 2008-09, a growth of 30 per cent. The growth in sales was backed largely by addition of three new embroidery machines of Swiss make. Supreme has also added two new export customers from Africa and the Middle East to diversify its customer profile; geographical concentration in revenues, however, continues to constrain its business profile. Supreme's profitability improved marginally in 2009-10, supported by higher value-added work from the new machines and better sales realizations. The company's capital structure remains aggressive, with gearing estimated at 3.33 times as on March 31, 2010 and weak comfortable debt protection metrics. CRISIL believes that Supreme will maintain a stable credit risk profile, led by strong customer relationships. About Supreme India Supreme, set up in 1995 by Mr. Jugal Kishore Jhawar and his brothers in Surat, undertakes value-added work such as embroidery, sequencing, zari and handwork on synthetic fabric. Mr. Jhawar has been in the textile industry since 1980. Supreme reported a profit after tax (PAT) of INR19 million on net sales of INR1391 million for 2009-10, as against a PAT of INR11 million on net sales of INR1069 million for 2008-09. * INDIA: RBI Asks Banks to Restructure Airline Loans ---------------------------------------------------- The Economic Times reports that the Reserve Bank of India has asked banks to work out a special concessional package for the crisis-ridden aviation sector. "The RBI has allowed in the case of aviation sector a special concession. Banking industry could on a case-by-case basis, subject to the guidelines and parameters given by RBI, look to see how this industry could be helped by a rescheduling, restructuring," the report quoted State Bank of India Chairman O. P. Bhatt as saying. The Economic Times reports that the RBI had sent a communication to the banks with regard to debt restructuring for airlines in the last week of August. According to the Economic Times, the Indian airline industry is facing mounting debts due to an economic downturn and resultant excess capacity, which still exists. However, the industry of late has been showing signs of recovery, which could gather pace if banks restructure their loans. The report says the cumulative debt of the airline industry is estimated at about INR60,000 crore. As of March, 2010, Air India had about INR40,000 crore debt, while Kingfisher Airlines had a debt of about INR6,000 crore. Major carriers like Air India and Jet Airways have plans to restructure their debt and have been in talks with banks to get soft loans instead of high-interest ones, the report notes. ========= J A P A N ========= INCUBATOR BANK: Files for Bankruptcy Protection ----------------------------------------------- Kyodo News reports that the Incubator Bank of Japan Ltd. filed for bankruptcy proceedings with the Financial Services Agency under the Deposit Insurance Law on Friday. Kyodo says the FSA is expected to invoke the deposit protection scheme for the first time since it was instituted in 1971. The protection covers up to JPY10 million in deposits and interest. The agency ordered the bank to suspend all its operations from Friday through Sunday with the aim of protecting depositors, the report says. Kyodo relates that some of the bank's operations have been suspended under the FSA order citing its obstruction of an audit between June last year and March this year and a "serious violation of the law" regarding its dealings with collapsed moneylender SFCG Co. According to Kyodo, sources said the bank may incur a capital deficit in its semiannual period through September. The bank had about JPY592.7 billion in deposits as of March 31, of which JPY68.6 billion had been deposited in excess of the JPY10 million threshold by some 4,800 depositors. Incubator Bank of Japan Ltd. is a Tokyo-based small business lender. TITAN JAPAN: S&P Lowers Ratings of Classes B to D Floating Bonds ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class B to D floating-rate bonds issued under the Titan Japan, Series 1 GK (Titan) transaction and placed the ratings on classes A to C on CreditWatch with negative applications. At the same time, Standard & Poor's affirmed its 'AAA (sf)' rating on the class X bonds issued under the same transaction. The downgrades and negative CreditWatch placements reflect what S&P view as uncertainty over the likely collection amount from the properties backing three loans (effectively two loans) out of the transaction's four remaining loans (effectively three loans). Out of the six loans (effectively four loans) that backed the transaction when the bonds were issued in December 2007, only four loans (effectively three loans) remain. One of the six initial loans (the loan, which originally represented 13.8% of the total initial issuance amount of the bonds, is backed by a retail property in Tokyo), which matured at the end of August 2010, has been repaid. Since repayment proceeds are scheduled to be used to redeem the bonds in sequential order (starting from the upper- level tranches), credit enhancement is expected to improve to a certain degree. Even so, S&P downgraded classes B to D and placed classes A to C on CreditWatch with negative implications because: * In September 2009, S&P lowered its assumption with respect to the likely collection amount from the properties backing two loans (the loans, which originally represented 63.9% of the total initial issuance amount of the bonds, are due to mature in November 2010) out of the transaction's four remaining loans. Under S&P's revised assumption, S&P estimated that the combined value of the properties was 69% of S&P initial underwriting value. The two loans (effectively one loan) are backed by retail properties located on the outskirts of Tokyo or in provincial areas. S&P holds the view that there is uncertainty over the likely collection amount from the properties in question given the recent situation regarding real estate deals involving similar asset types. * In September 2009, S&P also lowered its assumption with regard to the likely collection amount from the properties backing another remaining loan (a loan other than the two loans maturing in November 2010; the loan originally represented 15.5% of the total initial issuance amount of the bonds), which defaulted in June 2010. Under its revised assumption, S&P estimated that the combined value of the properties was 67% of S&P initial underwriting value. However, S&P now believe that uncertainty is mounting over the likely collection amount from the properties in question given their performances. Although S&P have yet to finalize its assessment of the likely collection amount from the properties backing the aforementioned three remaining loans (the two loans maturing in November 2010 and the loan that defaulted in June 2010), it is S&P's view that a certain level of decline in the likely collection amount appears unavoidable. Accordingly, S&P downgraded classes B to D. S&P intends to review its ratings on the classes placed on CreditWatch with negative implications after completing assessment of the recovery prospect for the properties. As part of this review, S&P will consider the cash flow performance of the properties and the plans made by the sponsor and servicer in regard to loan repayment and collateral liquidation. S&P affirmed rating on class X. However S&P will withdraw rating on that class if all principal and interest paying classes rated 'AA- (sf)' or higher are retired or downgraded below that rating level to reflect S&P's updated criteria for rating interest-only securities. Titan Japan, Series 1 GK is a multi-borrower CMBS transaction. The bonds were originally secured by six nonrecourse loans (effectively four loans) extended to six obligors. The nonrecourse loans were initially backed by 43 real estate properties or real estate beneficial interests. The transaction was arranged by Credit Suisse Securities, and Premier Asset Management Co. is the transaction servicer. The ratings address the full and timely payment of interest and the ultimate repayment of principal by the transaction's legal final maturity date in November 2012 for the class A certificates, the full payment of interest and ultimate repayment of principal by the legal maturity date for the class B to D certificates, and the timely payment of available interest for the interest-only class X certificates. RATINGS LOWERED, PLACED ON CREDITWATCH NEGATIVE Titan Japan, Series 1 GK JPY125.8 billion floating-rate bonds due Nov. 2012 Class To From Initial Issue Amount B BBB (sf)/Watch Neg A (sf) JPY12.1 bil. C BB- (sf)/Watch Neg BBB- (sf) JPY11.8 bil. RATING LOWERED: Class To From Initial Issue Amount D CCC (sf) B (sf) JPY11.7 bil. RATING PLACED ON CREDITWATCH NEGATIVE: Class To From Initial Issue Amount A AA+ (sf)/Watch Neg AA+ (sf) JPY90.2 bil. RATING AFFIRMED: Class Rating Initial Issue Amount X* AAA (sf) JPY125.8 bil. (Initial notional principal) *Interest only ==================== N E W Z E A L A N D ==================== ALLIED FARMERS: Settles Five Mile Sale & Reduces Debt to Westpac ---------------------------------------------------------------- Allied Farmers Ltd. disclosed an earlier than expected settlement of the sale of its Five Mile property near Queenstown Airport and has used proceeds from the early settlement to reduce its term debt to Westpac from NZ$14.2 million to NZ$5.4 million. Allied Farmers said this debt will be further reduced early this week with the receipt of proceeds from the successful MAC Reeves court hearing. "This is a good outcome, given we achieved a price for Five Mile that was within range of the valuation. Concluding the Five Mile deal early and winning the judgment on the MAC Reeves property will bring senior term debt down to less than $2.0 million, and gives significant impetus to our debt reduction programme," Allied Farmers Managing Director, Rob Alloway, said. About Allied Farmers Based in New Zealand, Allied Farmers Limited (NZE:ALF) -- http://www.alliedfarmers.co.nz/-- is engaged in livestock, real estate, finance, wool brokering and manufacturing (meat and timber). Rural Services comprises livestock, merchandise and real estate operations. The Company's Rural Services activities are carried out in Taranaki, Waikato, King Country and Manawatu. Its Financial Services activities are carried out by Allied Nationwide Finance Limited in Auckland, Wellington and Christchurch. Timber processing comprises the Company's discontinued sawmilling operations. On June 29, 2007, Allied Nationwide Finance Limited, Nationwide Finance Limited and Allied Prime Finance Limited were amalgamated, with Nationwide Finance Limited being the continuing entity. Nationwide Finance Limited subsequently changed its name to Allied Nationwide Finance Limited. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 21, 2010, Allied Farmers Ltd. gained a six-month extension of its loan facility with Westpac, giving the finance company more time to repay debt and restructure its business. Allied Farmers had NZ$21 million outstanding on the facility as at June 30 and had an overdraft facility of NZ$2.5 million that was set to expire on July 1. The latest agreement pushes out the due date to March 31 next year from September 24, 2010. ALLIED FARMERS: Reports Annual Operating Loss of NZ$77.58 Million ----------------------------------------------------------------- Allied Farmers Ltd. disclosed an unaudited operating loss after tax of NZ$77.587 million (2009: NZ$34.198 million loss) for the 12-month period ended June 30, 2010. The result for the year includes a NZ$21.395 million impairment of goodwill in its investment in subsidiary Allied Nationwide Finance which was placed in receivership on August 20, 2010. Consequent to receivership, all of the goodwill related to this investment has been written off. Corporate expenses for the year include one off acquisition costs of NZ$5.984 million, directly related to the purchase of the Hanover Finance and United Finance assets. Impairment losses of NZ$20.203 million on the ex Hanover Finance and United Finance assets relating to events after the December 18, 2009, acquisition date have been recognized in the result for the year. As at June 30, 2010, Allied Nationwide Finance was under the control of Allied Farmers and therefore its result, an after tax loss for the year of NZ$19.335 million, has been consolidated in the Group accounts. The appointment of a receiver to Allied Nationwide Finance after balance date has resulted in Allied Farmers writing off NZ$21.395 million of goodwill which was being carried in relation to this subsidiary. This write-off is included as part of the Corporate expenses outlined in the table above. Additional "Group Proforma" information has been included in the reported Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity, Balance Sheet and Statement of Cash Flows which represents the consolidated Group as it would stand excluding Allied Nationwide Finance. This provides a more relevant reflection of the Group going forward. The carrying value of Allied Nationwide Finance is reported in the Proforma accounts as nil. Managing Director Rob Alloway said the receivership of Allied Nationwide Finance was disappointing, and noted that the reasons for receivership of Allied Nationwide Finance had been well documented. Allied Farmers Investments, the asset management subsidiary which holds the assets acquired from Hanover Finance and United Finance incurred a loss of NZ$21.694 million for the period to June 30, 2010. Included in the loss are NZ$20.203 million of impairments on property and loan assets. Since the December 31, 2009, Interim Financial Statements there have been NZ$85.748 million of additional impairments recorded, NZ$65.545 million of which has been attributed against the fair value of the assets acquired as at acquisition date of December 18, 2009. This decreases the NZ$175.520 million provisional fair value assessment as at acquisition date reported in the December 31, 2009, Interim Financial Statements to NZ$109.975 million. Mr. Alloway said the fair value assessment of the assets acquired from Hanover Finance and United Finance was very disappointing given the level of independent expert overview of these values while Hanover was in moratorium and prior to acquisition. In a number of cases, the combined effect of reduced liquidity in the financial sector and reduced demand for property has severely diminished the security value which backs these assets. Many had been valued based on assumptions that were subsequently found to be unrealistic. "Our fair value assessment process was designed from the outset to be fair, taking into account parameters such as security value, prior charges, borrower risk, guarantor risk and country risk ? and has delivered what we believe to be a realistic representation of the value, as it stands today," Mr. Alloway said. The recovery process on loans and properties has been encouraging with NZ$9.447 million recovered in the six months to June 30, 2010. The rural services subsidiary, Allied Farmers Rural, encountered tough trading conditions during the year and reported a loss of NZ$0.757 million. Mr. Alloway said "Increased competition in the merchandising segment has again put pressure on margins and caused us to examine the way we do business in many areas. The Livestock division experienced a reduction in stock numbers. This was due to drought in some regions, and once again a tightening of on-farm cash flow led by the major banks, many of who are heavily exposed to the rural sector. Allied Farmers does however see some strong signals for recovery coming out of the dairy sector, with forward sales figures into 2011 for dairy herds well up on the previous season. This, together with signs of recovery across the rural sector generally, is likely to have a positive impact on performance in all the business sectors in which the rural business operates" Senior term debt during the year has decreased to NZ$16.5 million (2009: NZ$21.0 million) as at June 30, 2010. The Board has acknowledged Allied Farmers was over geared for the current environment, and debt reduction has been the key objective during the year and will remain a key focus for the Group for some time to come. About Allied Farmers Based in New Zealand, Allied Farmers Limited (NZE:ALF) -- http://www.alliedfarmers.co.nz/-- is engaged in livestock, real estate, finance, wool brokering and manufacturing (meat and timber). Rural Services comprises livestock, merchandise and real estate operations. The Company's Rural Services activities are carried out in Taranaki, Waikato, King Country and Manawatu. Its Financial Services activities are carried out by Allied Nationwide Finance Limited in Auckland, Wellington and Christchurch. Timber processing comprises the Company's discontinued sawmilling operations. On June 29, 2007, Allied Nationwide Finance Limited, Nationwide Finance Limited and Allied Prime Finance Limited were amalgamated, with Nationwide Finance Limited being the continuing entity. Nationwide Finance Limited subsequently changed its name to Allied Nationwide Finance Limited. * * * As reported in the Troubled Company Reporter-Asia Pacific on July 21, 2010, Allied Farmers Ltd. gained a six-month extension of its loan facility with Westpac, giving the finance company more time to repay debt and restructure its business. Allied Farmers had NZ$21 million outstanding on the facility as at June 30 and had an overdraft facility of NZ$2.5 million that was set to expire on July 1. The latest agreement pushes out the due date to March 31 next year from September 24, 2010. DORCHESTER PACIFIC: Appoints Greg Main as New General Manager ------------------------------------------------------------- Dorchester Pacific has appointed Greg Main as its new general manager for insurance and lending, replacing Henry Lynch who left Dorchester for the New Zealand Association of Credit Unions, an article posted at stuff.co.nz says. Mr. Main was formerly general manager for Lumley General Insurance's Lumley Business Solutions, the report says. According to the report, Dorchester executive director Paul Byrnes said Mr. Main brings a wealth of knowledge to the business based on more than 15 years experience in leadership positions at insurance and banking companies in New Zealand and overseas. About Dorchester Pacific Headquartered in Auckland, New Zealand, Dorchester Pacific Limited (NZE:DPC)-- http://www.dorchester.co.nz--is a financial solutions provider, offering complementary products and services across finance, insurance, savings and investments. The Finance division provides investment opportunities through secured debenture stock and subordinated unsecured notes, and financing solutions for the property, business, equipment, motor vehicle and personal finance sectors. Its insurance and savings division provides a range of savings, life insurance, reverse annuity mortgages, home equity release loans and other financial products and services. The Investment Service division includes equity investment advisers and sharebrokers, MoneyOnline and NZ Investor Magazine, which provide professional, independent investment advice, sharebroking and financial planning services. Dorchester Pacific holds a 25% shareholding in St. Laurence Limited, the holding company for a property-based investment and finance group of companies, which manages assets for over 16,000 investors. * * * Dorchester Pacific reported three consecutive net losses of NZ$19.1 million, NZ$25.4 million and NZ$18.1 million for the years ended March 31, 2008, 2009 and 2010, respectively. The accounts to March 31, 2010, have been prepared on a going concern basis. Although an unqualified opinion is expressed, auditors Staples Rodway note fundamental uncertainties with respect to realization of property loans and positions and the validity of the going concern basis should the Capital Reconstruction Plan not be approved by investors. Dorchester has been operating under a deferred repayment plan since late 2008. SOUTH CANTERBURY: Receivers Assure Borrowers of Continuous Funding ------------------------------------------------------------------ The receivers of South Canterbury Finance Ltd. moved to reassure the company's borrowers that their funding support is confirmed as long as they "meet the SCF Group's lending criteria," BusinessDesk reports. BusinessDesk relates receivers Kerryn Downey and William Black, of advisory firm McGrathNicol, said: "Over the past week, SCF Group senior management and staff have contacted the SCF Group's major customers to determine their funding requirements and make the necessary arrangements." "Confirming the continuity of funding lines for performing customers will help maintain the Group's ongoing business operations and preserve the value of the Group's assets. We recognise the importance of stable ongoing funding to SCF Group's customers and we want to reassure customers that funding will continue where lending criteria are being met," the receivers said. According to BusinessDesk, the receivers also reported ongoing interest from potential buyers of SCF's assets. 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. On August 31, 2010, Trustees Executors Limited, as trustee for South Canterbury Finance charging group, 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 recapitalization 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 New Zealand government said it would repay South Canterbury's 35,000 depositors and stockholders NZ$1.6 billion under the crown retail deposit guarantee scheme. ================= S I N G A P O R E ================= A & P: Court Enters Wind-Up Order --------------------------------- The High Court of Singapore entered an order on September 3, 2010, to wind up the operations of A & P Co-Ordinator Pte Ltd. Standard Form Pte Ltd filed the petition against the company. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road, #06-11 Singapore 069118 ARAM GLOBAL: Creditors' Proofs of Debt Due October 11 ----------------------------------------------------- Creditors of Aram Global Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 11, 2010, to be included in the company's dividend distribution. The company's liquidators are: Bob Yap Cheng Ghee Tay Puay Cheng Wong Joo Wan c/o 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 BIAN SENG: Creditors' Proofs of Debt Due September 23 ----------------------------------------------------- Creditors of Bian Seng Construction Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by September 23, 2010, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 CEDRIC MOTOR: Creditors' Proofs of Debt Due September 23 -------------------------------------------------------- Creditors of Cedric Motor (Pte) Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by September 23, 2010, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 CLUBMARC & COMPANY: Court Enters Wind-Up Order ---------------------------------------------- The High Court of Singapore entered an order on September 3, 2010, to wind up the operations of Clubmarc & Company Pte Ltd. United Overseas Bank Limited filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road, #05-11/#06-11 Singapore 069118 GREENLIFE HERBAL: Creditors' Proofs of Debt Due September 23 ------------------------------------------------------------ Greenlife Herbal & Seafood Restaurant Pte Ltd, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by September 23, 2010, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road, #06-11 Singapore 069118 HT TECHNOLOGIES: Creditors' Proofs of Debt Due September 23 ----------------------------------------------------------- HT Technologies (F.E.) Pte Ltd, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by September 23, 2010, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road, #06-11 Singapore 069118 LEUNG CHOW: Creditors' Proofs of Debt Due September 23 ------------------------------------------------------ Creditors of Leung Chow Industrial Co Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by September 23, 2010, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 PI COURT: Court Enters Wind-Up Order ------------------------------------ The High Court of Singapore entered an order on September 3, 2010, to wind up the operations of PI Court Pte Ltd. Kian An Realty Limited filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road, #05-11/#06-11 Singapore 069118 PROCENTEC PTE: Court to Hear Wind-Up Petition on September 24 ------------------------------------------------------------- A petition to wind up the operations of Procentec Pte Ltd will be heard before the High Court of Singapore on September 24, 2010, at 10:00 a.m. Procentec B.V. filed the petition against the company on September 1, 2010. The Petitioner's solicitors are: Messrs Wong Partnership LLP One George Street #20-01 Singapore 049145 SHIKOKU TECHNOLOGIES: Court to Hear Wind-Up Petition on Sept. 24 ---------------------------------------------------------------- A petition to wind up the operations of Shikoku Technologies Singapore Pte Ltd will be heard before the High Court of Singapore on September 24, 2010, at 10:00 a.m. United Overseas Bank Limited filed the petition against the company on September 1, 2010. The Petitioner's solicitors are: Messrs Wong Partnership LLP One George Street #20-01 Singapore 049145 SUMMA SQUARE: Creditors' Proofs of Debt Due October 21 ------------------------------------------------------ Creditors of Summa Square Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 21, 2010, to be included in the company's dividend distribution. The company's liquidator is: Heng Lee Seng 15 Hoe Chiang Road #12-02 Tower Fifteen Singapore 089316 ZENECON ENGINEERING: Creditors' Proofs of Debt Due September 23 --------------------------------------------------------------- Zenecon Engineering Pte Ltd, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by September 23, 2010, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road, #06-11 Singapore 069118 =========== T A I W A N =========== TACHAN SECURITIES: Fitch Affirms Issuer Default Rating at 'BB' -------------------------------------------------------------- Fitch Ratings has affirmed Tachan Securities Co., Ltd's Long-term Issuer Default Rating at 'BB', Short-term IDR at 'B', National Long-term rating at 'BBB+(twn)', National Short-term rating at 'F2(twn)', Individual rating at 'D', Support rating at '5' and Support Rating Floor at 'NF'. The Outlook for Tachan's Long-term IDR and National Long-term rating is Stable. Tachan's ratings and Stable Outlook reflect its very limited use of leverage, which is evidenced by its strong capitalization and liquidity profile. At end-H110, Tachan reported a CAR of 711% (substantially above the regulatory requirement of 150%), and maintained a fairly liquid balance sheet as indicated by the surplus in net current assets. Tachan's business profile focuses on proprietary trading, which is a major rating constraint as its performance is highly susceptible to the volatility of the equity market. In Fitch's view, a sustainable improvement in earning quality through higher brokerage-related revenues could benefit Tachan's ratings. On the other hand, a large trading loss leading to a significant weakening in capitalization could pressure the ratings. Proprietary trading has continued to heavily influence Tachan's earnings performance, as contribution of its brokerage business remains small due to a disadvantage in scale. In an effort to improve its brokerage market share and earnings diversity, Tachan upgraded its online electronic trading tools and enhanced its risk control measures in 2010. While Fitch views the system enhancements as vital for Tachan in maintaining its current presence in the broking segment, the agency believes further growth in this segment will be challenging. Tachan reported an annualized ROE of 1.2% (un-audited) in the first seven months of 2010 and 5.5% in 2009, a reversal from a net loss of 8.2% in 2008, thanks to the strong recovery of the domestic stock market. While a volatile stock market could pose a threat to Tachan's bottom-line earnings in 2010, Fitch notes that Tachan has a strong capital buffer to accommodate unexpectedly large trading losses. Tachan's risk appetite remains moderate, as it trimmed its bond positions and shifted to stock investments over 2009-H110. Fitch considers the risk arising from Tachan's stock trading position to be manageable, as the exposure accounted for 22.6% of equity at end-H110. Tachan, established in 1988, is one of the smaller securities firms in Taiwan, with a national brokerage market share of 0.13% in H110. Marlon Chu, the founder, and investment associates own about 80% of the company. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***