/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100915.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, September 15, 2010, Vol. 13, No. 182 Headlines A U S T R A L I A AFFILIATE MARKETING: Placed in Voluntary Administration ALLIED BRANDS: Says Still Has Dunkin Brands Distribution Rights FOODWORKS: Incurs AU$26 Million Loss; Going Concern Doubt Raised RELIANCE SECURITY: Administrators Chase Over AU$3MM Outside Loan TIMBERLAND FURNITURES: Up for Sale; Deloitte Named as Receivers H O N G K O N G PACIWISE DEVELOPMENT: Yeung Kam Hoi Steps Down as Liquidator PACIFIC UNION: Creditors' Proofs of Debt Due October 4 RIDGE LUCK: Members' Final Meeting Set for October 15 SEBOD FOUNDATION: Members' Final General Meeting Set for Oct. 15 SHINKO SECURITIES: Yan and Haughey Step Down as Liquidators SIEMENS BUILDING: Cowley and Mitchell Step Down as Liquidators SOLUTION 6: Arboit and Blade Step Down as Liquidators STAR ALLIANCE: Yeung Kam Hoi Steps Down as Liquidator SUPERFOLD INVESTMENT: Yeung Kam Hoi Steps Down as Liquidator TAK KEE: Placed Under Voluntary Wind-Up Proceedings TOP WONDER: Creditors' Proofs of Debt Due October 4 VARITRONIX FOUNDATION: Creditors' Proofs of Debt Due September 30 WELL HARVEST: Members' Final Meeting Set for October 15 WIN BENEFIT: Yeung Kam Hoi Steps Down as Liquidator WINPET INVESTMENT: Yeung Kam Hoi Steps Down as Liquidator WORLD TREND: Yeung Kam Hoi Steps Down as Liquidator YOGA PLUS: Members' Final Meeting Set for October 11 I N D I A ADARSH DEVELOPERS: Fitch Assigns 'BB-' National Long-Term Rating ADARSH REALTY: Fitch Assigns National Long-Term Rating at 'B+' AMAN INFRATEX: CRISIL Assigns 'BB-' Rating to INR482.5MM Term Loan GREAT EASTERN: CRISIL Places 'BB' Ratings on Various Bank Debts INDIAN GEM: ICRA Places 'LBB' Rating on INR28cr Fund Based Debts INTEGRATED EQUIPMENT: CRISIL Rates INR140.6MM Term Loan at 'B' KOHINOOR EDUCATION: ICRA Assigns 'LBB' Rating to INR64cr LT Loan MAVIN TEXTURISERS: CRISIL Reaffirms 'BB' Rating on INR14.1MM Loan NHC INDUSTRIES: ICRA Reaffirms 'LBB' Rating on Term Loans SAINSONS PULP: CRISIL Cuts Rating on INR322.5MM Term Loan to 'B+' SHAHEED KARTAR: ICRA Assigns 'LB' Rating to INR8.75cr Bank Debts SHAKTI POLYWEAVE: ICRA Assigns 'LBB' Rating to INR1.62cr Term Loan SHRI JAGDAMBA: ICRA Places 'LBB' Rating on INR49.2MM Term Loan SURYA PROCESSORS: Fitch Assigns 'BB-' National Long-Term Rating J A P A N INCUBATOR BANK: Starts Refunding Depositors Covered Under Scheme SHINSEI BANK: Moody's Assigns Rating on Callable Subordinate Notes WMT GLOBAL: S&P Retains CreditWatch Negative on Note Ratings WMT GLOBAL: S&P Downgrades Ratings on Various Classes of Notes N E W Z E A L A N D INVESTMENT RESEARCH: In Talks With Banks Over Covenant Breach MUTUAL FINANCE: Receivers Can't Estimate Government Recovery Yet X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= AFFILIATE MARKETING: Placed in Voluntary Administration ------------------------------------------------------- Affiliate Marketing Solutions has been placed in administration affecting small web publishers, advertising companies, Telstra and Neverfail Springwater, SmartCompany reports. SmartCompany says the company, run by Christian Knight and Andrew Kilday, managed web-based affiliate marketing programs for a range of big-name clients, including Quickflix, CareerOne and RSVP. While the level of debt owed is small by insolvency industry standards -- Vouris told SmartCompany that AMS has debts of AU$500,000, versus assets of about AU$200,000 -- the list of creditors includes some big names. According to the report, Telstra, owed just AU$240.36, is the biggest name on the list, while other well-known creditors include Neverfail Springwater (owed AU$189.10), Veda Advantage (owed AU$16,984), Tempest Media (owed AU$6,681) and Shop-A-Docket (owed AU$3,388). Two of the largest creditors are King (owed almost AU$75,000) and Kindlay (owed almost AU$30,000). SmartCompany adds Craig Seitam, founder of CompetitionsGuide.com.au, said he was one of many Web site owners to receive correspondence last week from the administrators saying commissions owed by AMS would not be paid as a result of the collapse. Sydney-based Affiliate Marketing Solutions manages affiliate marketing services business. ALLIED BRANDS: Says Still Has Dunkin Brands Distribution Rights --------------------------------------------------------------- Allied Brands Ltd. said it still has the rights to distribute Baskin Robbins products in Australia and discussions are ongoing between the company and the owner of the ice-cream chain, Dunkin Brands, The Sydney Morning Herald reports. SMH relates Allied Brands said in a statement on Tuesday that US-based Dunkin Brands had sent a letter on September 10 to end the rights of the Australian firm to franchise and distribute the Baskin Robbins chain across the nation. Subsequent discussions between the firms have led to Dunkin Brands to not ending the arrangement but reserving the right to do so, the report says. SMH relates that the company's acting chief executive, Sean Corbin, has flown to the U.S. because of the dispute over its master franchise agreement with Dunkin Brands. According to SMH, the franchisor earlier this month reported a full-year net loss of AU$35.2 million following two profit downgrades and write-downs across the group. Shares in the company have fallen 86% this year and last traded at 2.7›, the report says. SMH says the poor result has left Allied with negative net tangible assets and in breach of its banking covenants. The company said in a statement it "relies on its financial institutions and noteholders to continue as a going concern". At June 30, the company was AU$640,000 deep into its bank overdraft. About Allied Brands Allied Brands Limited (ASX:ABQ) -- http://www.alliedbrands.com.au/ -- is engaged in food and retail franchising in Australia. The Company operates in two segments: food and non food. The food segment includes the sale of ice-cream, cookie-related products and dry goods to franchisees, receipt of royalties and construction of new stores and sale of coffee, general provision of meals, and rental income earned on baking ovens. The non food segment includes the receipt of royalties and rental income in respect of furniture, fixtures homewares and equipment from franchisees and other parties, and the sale of franchised areas for the sale and servicing of water coolers, televisions and water filters. FOODWORKS: Incurs AU$26 Million Loss; Going Concern Doubt Raised ---------------------------------------------------------------- The Sydney Morning Herald reports that Foodworks has been deeply wounded by its failed bid to take over 45 Coles stores, running up a AU$26 million loss for the year. The company reported a AU$2 million loss in 2009. According to the report, auditors Pitcher Partners warn there is "significant doubt" the group can continue as a going concern because current liabilities exceed current assets by AU$7.2 million. Citing FoodWorks' statement to the NSX, SMH relates that FoodWorks chairman John Bridgfoot and acting chief executive Rick Wright admitted "the corporate store program did not work out as intended." SMH notes that FoodWorks group plans to be rid of all 22 stores so far transferred from Coles by Christmas. So far, Australian United Retailers, the head company of the FoodWorks group, has closed one store and sold nine. SHM reports that Coles owner Wesfarmers, which loaned FoodWorks AU$31.7 million to buy the supermarkets, has agreed to a new payment timetable that pushes the bulk of repayments out to the end of next financial year. Under the new deal, FoodWorks is to pay back AU$6 million this year and AU$19.7 million next year. About Foodworks Australian United Retailers Limited (AURL) is an independent retail supermarket group trading under the "FoodWorks" brand. It was created from the Merger of the FoodWorks Supermarket Group Ltd and Australian United Retailers in November 2004. RELIANCE SECURITY: Administrators Chase Over AU$3MM Outside Loan ---------------------------------------------------------------- Administrators from Sydney firm Lawler Partners are investigating the collapse of Reliance Security Group, which was placed into the hands of administrators in July, according to SmartCompany. SmartCompany says the company employed about 200 people, who are owed AU$2.4 million in entitlements. Citing the administrators' latest report to creditors, SmartCompany relates that Reliance Security collapsed with debts of more than AU$5.3 million despite having revenue of more than AU$10 million in 2009-10, no bank debt and no secured creditors. The administrators are chasing more than AU$3 million in loans made to outside parties, SmartCompany adds. Reliance Security Group is an Australian-based private security firm. TIMBERLAND FURNITURES: Up for Sale; Deloitte Named as Receivers --------------------------------------------------------------- SmartCompany reports that Timberland Furnitures has been put up for sale after falling into the hands of receivers. The company was placed under the control of Neil Cussen and Vaughn Strawbridge from accounting firm Deloitte after falling into receivership on September 6. SmartCompany, citing a report from the Illawarra Mercury, says the chain may have been experiencing problems as early October last year, when its Warrawong store was suddenly closed. A sales campaign for the business was launched on September 10, SmartCompany reports. Timberland Furnitures is a Sydney-based furniture retailer. The company has 10 stores in New South Wales and the Australian Capital Territory. ================ H O N G K O N G ================ PACIWISE DEVELOPMENT: Yeung Kam Hoi Steps Down as Liquidator ------------------------------------------------------------ Yeung Kam Hoi stepped down as liquidator of Paciwise Development Limited on September 1, 2010. PACIFIC UNION: Creditors' Proofs of Debt Due October 4 ------------------------------------------------------ Creditors of Pacific Union Management 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 3, 2010. The company's liquidator is: Yan Tat Wah 5/F., Dah Sing Life Building 99-105 Des Voeux Road Central, Hong Kong RIDGE LUCK: Members' Final Meeting Set for October 15 ----------------------------------------------------- Members of Ridge Luck Limited will hold their final meeting on October 15, 2010, at 11:00 a.m., at Unit D, 12th Floor, Seabright Plaza, 9-23 Shell Street, North Point, in Hong Kong. At the meeting, Chan Sek Kwan Rays, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SEBOD FOUNDATION: Members' Final General Meeting Set for Oct. 15 ---------------------------------------------------------------- Members of Sebod Foundation Limited will hold their final general meeting on October 15, 2010, at 10:00 a.m., at 14th Floor, Shanghai Industrial Investment Building, 48 Hennessy Road, Wanchai, in Hong Kong. At the meeting, Ip Chung Yuen, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SHINKO SECURITIES: Yan and Haughey Step Down as Liquidators ----------------------------------------------------------- Lai Kar Yan (Derek) and Darach E. Haughey stepped down as liquidators of Shinko Securities (H.K.) Limited on September 6, 2010. SIEMENS BUILDING: Cowley and Mitchell Step Down as Liquidators -------------------------------------------------------------- Patrick Cowley and Paul Edward Mitchell stepped down as liquidators of Siemens Building Technologies (China) Limited on September 10, 2010. SOLUTION 6: Arboit and Blade Step Down as Liquidators ----------------------------------------------------- Bruno Arboit and Simon Richard Blade stepped down as liquidators of Solution 6 (Asia) Limited on September 6, 2010. STAR ALLIANCE: Yeung Kam Hoi Steps Down as Liquidator ----------------------------------------------------- Yeung Kam Hoi stepped down as liquidator of Star Alliance Limited on September 1, 2010. SUPERFOLD INVESTMENT: Yeung Kam Hoi Steps Down as Liquidator ------------------------------------------------------------ Yeung Kam Hoi stepped down as liquidator of Superfold Investment Limited on September 1, 2010. TAK KEE: Placed Under Voluntary Wind-Up Proceedings --------------------------------------------------- At an extraordinary general meeting held on September 2, 2010, creditors of Tak Kee Tson Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Mr. Chan Chun Yim Rm. 1501, 15/F Wanchai, Com'l Centre 194-204 Johnston R Wanchai, Hong Kong TOP WONDER: Creditors' Proofs of Debt Due October 4 --------------------------------------------------- Creditors of Top Wonder Development 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 liquidators are: Lui Pui Chung Ng Wai Kit Suite 2202, Austin Plaza 83 Austin Road Kowloon, Hong Kong VARITRONIX FOUNDATION: Creditors' Proofs of Debt Due September 30 ----------------------------------------------------------------- Creditors of Varitronix Foundation Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by September 30, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on August 31, 2010. The company's liquidators are Chan Chi Ho Lau Wai Fung Rm 1403, Sugar Street Hong Kong WELL HARVEST: Members' Final Meeting Set for October 15 ------------------------------------------------------- Members of Well Harvest Investment Limited will hold their final meeting on October 15, 2010, at 10:30 a.m., at Room 1601, Wing On Centre, 111 Connaught Road Central, in Hong Kong. At the meeting, Fung Kit Yee, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. WIN BENEFIT: Yeung Kam Hoi Steps Down as Liquidator --------------------------------------------------- Yeung Kam Hoi stepped down as liquidator of Win Benefit Investment Limited on September 1, 2010. WINPET INVESTMENT: Yeung Kam Hoi Steps Down as Liquidator --------------------------------------------------------- Yeung Kam Hoi stepped down as liquidator of Winpet Investment Limited on September 1, 2010. WORLD TREND: Yeung Kam Hoi Steps Down as Liquidator --------------------------------------------------- Yeung Kam Hoi stepped down as liquidator of World Trend Development Limited on September 1, 2010. YOGA PLUS: Members' Final Meeting Set for October 11 ---------------------------------------------------- Members of Yoga Plus Limited will hold their final meeting on October 11, 2010, at 2:00 p.m., at 25/F., Tern Centre Tower 1, 237 Queen's Road Central, in Hong Kong. At the meeting, Au Wai Keung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= ADARSH DEVELOPERS: Fitch Assigns 'BB-' National Long-Term Rating ---------------------------------------------------------------- Fitch Ratings has assigned India's Adarsh Developers a National Long-term rating of 'BB-(ind)'. The Outlook is Stable. The agency has also assigned 'BB-(ind)' ratings to Adarsh's outstanding INR1,739.4 million long-term bank loans and INR1,000 million overdraft limit. Adarsh's ratings reflect its relatively strong performance during the severe economic downturn in the domestic real estate market over FY09-FY10, its leading position as a seller of high-end villas in Bangalore and the improving real estate market in the city. The company is a medium-sized residential real estate developer, with an operational track record of 15 years in the Bangalore market. The sales in the ongoing projects have been continuous. The company reported a further improvement in its sales in Q1FY11. The ratings are however constrained by Adarsh's relatively stretched financial performance in FY10. It reported a high gearing (total debt/net worth) of 3.13x compared to its peers. The ratings are also constrained by the high level of borrowings relative to the current scale of operations, which resulted in a high leverage (debt/EBIDTA) of 6.31x and interest coverage of 1.49x in FY10. Its adjusted debt/EBIDTA was high at 9.68x at FYE10, considering the debt on other group entities (Adarsh Realty & Hotels Private Limited and Adarsh Prime Projects Limited), which have a personal guarantee from the partners of Adarsh. The ratings are moderated by the re-emergence of demand in the Bangalore market and an improvement in the fundamentals of India's real estate sector. Fitch has estimated that the company's cash flows from the already sold units will contribute about 30% of its contracted outflows (through construction expenses for the ongoing projects, interest and principal repayment obligations). Hence, the balance is required to be supported by additional inflows from new sales and additional debt financing. Adarsh is a closely held partnership firm with the majority share of 99.95% being held by the managing partner. The partners have two other key ventures, namely Adarsh Realty & Hotels Private Limited and Adarsh Prime Projects Limited. Fitch expects the firm to provide financial support to the other ventures of the promoter group. The agency also expects Adarsh's leverage and gearing to continue to be high as Adarsh and the other group companies have a large pipeline of ongoing and future projects. Positive rating triggers include a successful demonstration of the projected level of apartment and villa sales, which would result in an improvement in Adarsh's profitability and credit metrics, such that its adjusted (including guarantees) debt/EBIDTA decreases below 5.5x. Negative rating triggers include any material impact to Adarsh's credit metrics, which would result in its total adjusted debt/EBIDTA exceeding 8x and a decline in interest cover of below 1.5x. As per Adarsh's FY10 provisional and unaudited figures, the company reported revenues of INR3,167.6 million, an EBIDTA of INR1,358.7 million and a profit before tax of INR528.7 million. Its gross debt outstanding as at end-March 2010 was INR8,566.8 million, resulting in a gross adjusted debt/EBIDTA of 6.31x. ADARSH REALTY: Fitch Assigns National Long-Term Rating at 'B+' -------------------------------------------------------------- Fitch Ratings has assigned India's Adarsh Realty & Hotels Private Limited a National Long-term rating of 'B+(ind)'. The Outlook is Stable. The agency has also assigned a 'B+(ind)' rating to Adarsh Realty's INR2,750 million long-term loans. Adarsh Realty's ratings reflect the operational track record of Palm Meadows Club - a club house operated by the company in Adarsh Palm Retreat, Whitefield, Bangalore, which was developed by Adarsh Developers ('BB-(ind)'/Stable). Furthermore, Adarsh Realty is implementing a five-star hotel project called "Adarsh Palace Road" in a tie-up with the Shangri-La group. The ratings also incorporate the strength the project derived from the branding, technical assistance, management and marketing collaboration with the Shangri-La group. The ratings also consider the operational and financial support from Adarsh Developers, which is constructing the proposed property and also the common management. The agreements and approvals had initially been in the name of Adarsh Developers, but were later transferred to Adarsh Realty. The managing partner of the former has a 99.95% share in Adarsh Realty and has provided a personal guarantee for its term loans along with the other partners. Fitch expects Adarsh Realty to be dependent upon Adarsh Developers for financial support until the project is implemented and starts generating operating cash flows sufficient to service the debt on its own. The ratings are constrained by the significant size of the project (total capex of INR4,397.6 million) in relation to the company's present size and scale of operations. This large debt-funded capital expenditure plan (debt component of INR2,750 million) has stretched the company's leverage to very high levels (FY10 debt/EBITDA: 19.10x) and gearing (FY10 debt/net worth: 8.19x). Furthermore, the project has been delayed due to factors such as time taken for statutory approvals and modification of the terms with the Shangri-La group. The additional capacity coming up in the five-star and five-star deluxe categories over the next three- four years in Bangalore is likely to further impact the occupancy levels and the average room rates. Positive ratings triggers include timely implementation of the ongoing project, which would result in a sustained increase in Adarsh Realty's revenues and profitability, and an improvement in Adarsh Developers' credit profile which would result in an improvement in Adarsh Realty's credit profile. Negative rating triggers include any cost and/or time overruns, which would result in a sustained deterioration in Adarsh Realty's EBIDTA margins of below 40% and interest cover of below 1.5x. Adarsh Realty was incorporated in 1996 and has been operating the Palm Meadows Club since 2005. It has also been operating a business hotel called "Adarsh Hamilton" in Bangalore since May 2010. For FY10, the company reported (provisional, unaudited) revenues of INR172.80m and an EBIDTA of INR 82.15m (47.5%). AMAN INFRATEX: CRISIL Assigns 'BB-' Rating to INR482.5MM Term Loan ------------------------------------------------------------------ CRISIL has assigned its 'BB-/Negative/P4' ratings to Aman Infratex Ltd.'s bank facilities. Facilities Ratings ---------- ------- INR482.5 Million Term Loan BB-/Negative (Assigned) INR280.0 Million Cash Credit BB-/Negative (Assigned) INR130.0 Million Letter of Credit P4 (Assigned) INR20.0 Million Bank Guarantee P4 (Assigned) The ratings reflect Aman Infratex's average financial risk profile, marked by high gearing and moderate debt protection metrics, and susceptibility to volatility in raw material prices. These rating weaknesses are partially offset by Aman Infratex's promoter's experience in the yarn industry. Outlook: Negative CRISIL believes that Aman Infratex's financial risk profile will remain under pressure over the medium term because of its weak liquidity, below-average debt protection metrics, and high gearing. The ratings may be downgraded, if the company's liquidity deteriorates further, or it undertakes large debt-funded capital expenditure programmes. Conversely, the outlook may be revised to 'Stable', if Aman Infratex demonstrates a significant and sustainable improvement in liquidity, either through better working capital management or by infusing long-term funds to augment the net working capital, and generates significantly higher-than-expected revenues and net cash accruals, leading to improvement in its debt servicing ability. About Aman Infratex Aman Infratex, incorporated in 1999, manufactures texturised polyester yarn and fabrics. The company was set up by Mr. Dilip Sarawagi (second generation entrepreneur). It has a manufacturing facility in Silvassa (Gujarat) with capacity of 1800 tonnes per month (tpm) for texturised yarn and 600 tpm for fabrics. The day- to-day operations are managed by Mr. Dilip Sarawagi and his brother Mr. Anil Sarawagi. Aman Infratex reported a profit after tax (PAT) of INR27.5 million on net sales of INR1613.0 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR21.0 million on net sales of INR1241.7 million for 2008-09. GREAT EASTERN: CRISIL Places 'BB' Ratings on Various Bank Debts --------------------------------------------------------------- CRISIL has assigned its 'BB/Stable' rating to Great Eastern Trading Company's bank facilities. Facilities Ratings ---------- ------- INR115 Million Cash Credit BB/Stable (Assigned) INR15 Million Standby Line of Credit BB/Stable (Assigned) INR27.5 Million Term Loan BB/Stable (Assigned) INR2.5 Million Proposed LT Bank Loan Facility BB/Stable (Assigned) The rating reflects Great Eastern's weak financial risk profile, marked by high gearing and weak debt protection metrics and large working capital requirements. These rating weaknesses are partially offset by Great Eastern's established market position in distribution of consumer electronics products business in West Bengal. Outlook: Stable CRISIL believes that Great Eastern will maintain its comfortable business risk profile backed by its widespread retail outlets, diversified product profile, and established relationships with original manufacturers. The outlook may be revised to 'Positive' if there is significant improvement in Great Eastern's financial risk profile through equity infusion or if there is more-than- expected growth in turnover while maintaining profitability. Conversely, the outlook may be revised to 'Negative' if there is a slowdown in sales and profitability leading to deterioration in its financial risk profile. About Great Eastern Great Eastern, a unit of Great Eastern Hire Purchase Pvt Ltd, was set up in 1976 by Mr. Mahendra Kumar Baid and his father, the late Mr. Punam Chand Ji Baid. Since inception the firm has been trading in various electronics consumer appliances and durables. The firm started its first showroom in Dalhousie (Kolkata) with an owned area of around 4000 square feet (sq ft). Great Eastern currently has eight showrooms in and around Kolkata with retail space of about 36,500 sq ft. The firm sells products of Sony India Pvt Ltd (Sony; rated 'AA/Negative' by CRISIL), Samsung India Electronics Ltd (Samsung), Godrej and Boyce Manufacturing Co Ltd (Godrej; rated 'AA-/Stable/P1+' by CRISIL), Whirlpool of India Ltd (Whirlpool; rated 'A+/Negative/P1+' by CRISIL), Videocon India Ltd, Onida, Philips Electronics India Ltd (Philips; rated 'AA/Stable/P1+' by CRISIL) etc. Great Eastern reported a provisional profit after tax (PAT) of INR8.7 million on net sales of INR 1050.0 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR3.35 million on net sales of INR539.9 million for 2008-09. INDIAN GEM: ICRA Places 'LBB' Rating on INR28cr Fund Based Debts ---------------------------------------------------------------- ICRA has assigned an 'LBB' rating to the INR 28 crore fund based limits of Indian Gem & Jewellery Imperial Private Limited. The outlook on the assigned long term rating is stable. ICRA has also assigned an 'A4' rating to the INR2 crore non fund based sub limits of IGJIPL. The ratings reflect IGJIPL's low operating margins resulting from a highly competitive nature of the jewellery industry with a low value addition in business, high working capital requirements and susceptibility of profits to gold price fluctuations. The net profit margins are also low, resulting in low cash accruals and in turn leading to weak coverage indicators. The ratings also factor in the company's geographical concentration risks arising out of its single city operations at present, although the company has plans to expand its reach to some other cities in the eastern India. The ratings however derive comfort from the long experience of the promoters in the jewellery business, own design capability of the company and its established position in Kolkata. About Indian Gem IGJIPL was incorporated in November, 2006 as Indian Gem & Jewellery Pvt. Ltd. In the year 2007, the business of Indian Gem & Jewellery Pvt. Ltd. was divided among two brothers. After the division, the current promoter Mr Prasanna Dugar established IGJIPL, which is engaged in the manufacturing and trading of gold jewellery, diamond studded jewellery and precious and semi precious stones studded jewellery. Gold jewellery contributes to the bulk of the company's revenue (around 65% in FY10) with diamond and stone studded jewellery contributing the rest. The company has three showrooms in the prime locations in Kolkata. Recent Results The company reported a net profit of INR 0.29 crore in FY10 on an operating income of INR142.77 crore, as compared to a net profit of INR0.25 crore on an operating income of INR115.14 crore during FY09. INTEGRATED EQUIPMENT: CRISIL Rates INR140.6MM Term Loan at 'B' -------------------------------------------------------------- CRISIL has assigned its 'B/Negative/P4' ratings to Integrated Equipment (India) Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR140.6 Million Rupee Term Loan B /Negative (Assigned) INR10.0 Million Letter of Credit P4 (Assigned) INR45.00 Million Export Packing Credit/ Export Bill Discounting P4 (Assigned) The ratings reflect IEI's weak liquidity because of working? capital-intensive operations, small scale of operations with pressure on revenues, and weak financial risk profile, marked by small net worth, high gearing, and weak debt protection metrics. These rating weaknesses are partially offset by the support that IEI derives from its group company Integrated Equipment International Inc, USA (IEII USA), and IEI's comfortable operating efficiency. Outlook: Negative CRISIL believes that IEI will remain exposed to liquidity pressures over the medium term because of its large repayment obligations vis-…-vis small cash accruals. The ratings may be downgraded in case of continued pressure on the company's revenues, resulting in depressed cash accruals vis-…-vis high debt repayment obligation. Conversely, the outlook may be revised to 'Stable' if Integrated India's liquidity improves, backed by higher-than-expected cash accruals driven by increased revenues, or in case of fresh equity infusion, improving the company's capital structure. About Integrated Equipment Incorporated in 2006, IEI is promoted by Mr. Ashish Sharma and his father Mr. Brijmohanlal Sharma as an export-oriented unit. The company manufactures pressure-control equipments which are used in the oil and gas industry, at its facility in Pune (Maharashtra). IEI sells most of its output to IEII USA, its selling arm based in the US. IEI reported a profit after tax (PAT) of INR1 million on net sales of INR102 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR24 million on net sales of INR171million for 2008-09. KOHINOOR EDUCATION: ICRA Assigns 'LBB' Rating to INR64cr LT Loan ---------------------------------------------------------------- ICRA has assigned an 'LBB' rating to the INR 64 crore long term fund based bank facilities and an 'A4' rating to the INR1 crore non-fund based facilities of Kohinoor Education Trust. The outlook assigned to the long term rating is stable. The ratings are constrained by the nascent stage of operations of the various institutes operating under the Trust and project risk on account of ongoing infrastructure development work at the Trust's educational complex in Mumbai with significant costs yet to be incurred. The ratings, however, draw comfort from the strong brand name of the Kohinoor Group in the education sector in Maharashtra and the favorable debt maturity profile of the Trust with no major repayments due in the near term. Going forward, the ability of the Trust to complete infrastructure development and increase student intake at its education complex in Mumbai remain the key rating sensitivities. KET was established in September 2007 as a Public Trust by the Mumbai based Kohinoor Group. The Kohinoor Group, founded in 1961 by Mr. Manohar Joshi has presence in education, real estate healthcare and hospitality through various group companies. Mr. Unmesh Joshi, who is the current chairman and managing director of the Group, is also the managing trustee of KET. Under KET, the Group established KBSCMR at its Khandala campus in 2008-09 with a batch strength of 60 students. Apart from KBSCMR, KET is currently in the process of setting up a management college and ICSE School at Kurla in Mumbai. Recent Results For the twelve month period ending March 31, 2010, KET reported a net loss of INR0.42 crore on an OI of INR2.38 crore. MAVIN TEXTURISERS: CRISIL Reaffirms 'BB' Rating on INR14.1MM Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Mavin Texturisers Pvt Ltd continue to reflect Mavin's weak financial risk profile, marked by low networth, modest debt protection measures, and weak liquidity (because of high level of unrealized debtors), and small scale of, and non-integrated, operations. These rating weaknesses are partially offset by the established track record of Mavin's promoters. Facilities Ratings ---------- ------- INR14.1 Million Term Loan BB/Stable (Reaffirmed) INR50.0 Million Cash Credit Limit BB/Stable (Reaffirmed) INR10.0 Million Bank Guarantee P4+ (Reaffirmed) Outlook: Stable CRISIL believes that Mavin will continue to benefit from its promoters' strong track record in the textile industry. Mavin's financial risk profile is, however, expected to remain constrained because of its proposed large debt-funded capital expenditure (capex) and stretch in receivables. The outlook may be revised to 'Positive' if Mavin stabilises operations at its proposed capacities on time, resulting in increased scale of operations, and improves its profitability and debt protection metrics. Conversely, the outlook may be revised to 'Negative' in case of decline in operating margin, or any further stretch in realisations from debtors. About Mavin Texturisers Incorporated in 1997, Mavin manufactures grey fabric and texturised yarn. The company is managed by Mr. Mahesh Kumar Nangalia and family. The company has capacity of 5.4 million metres per annum for grey fabric manufacturing and 700 tonnes per annum for filament yarn. The company is proposing a capex programme of INR35 million to increase its grey fabric production capacity by 3.6 million metres per annum; the fresh capacities are expected to be operational by April 2011. The capex is expected to be funded through term debt of INR25 million. Mavin reported a profit after tax (PAT) of INR2.0 million on net sales of INR228.0 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR1.8 million on net sales of INR216.9 million for 2008-09. NHC INDUSTRIES: ICRA Reaffirms 'LBB' Rating on Term Loans --------------------------------------------------------- ICRA has reaffirmed the long-term rating of 'LBB' assigned to the Term Loans and Fund Based Limits of NHC Industries Private Limited aggregating to INR6.00 crore and INR14.00 crore respectively. ICRA has placed the rating under rating watch with developing implications. The rating remains constrained by the weak financial profile of the company characterized by modest size of operations, low profitability indicators and stretched capital structure. The operations of the company remain susceptible to agro climatic conditions and the stiff competition from domestic as well as foreign players. The rating however favorably factors in the company's established track record in the trading business, the recent commissioning of new facility at Pardi (Gujarat) that would lead to better quality control, the diversified product profile and tie-ups with customers from diversified geographic markets. ICRA notes that NIPL has been amalgamated with Midpoint Software and Electro Systems Limited and the High Court sanction for the same was announced in August 2010. ICRA has placed the rating under rating watch with developing implications and is awaiting further details on the new entity to assess the impact on the credit profile of NIPL. About NHC Industries NHC Industries Private Limited is engaged in trading activities of agro commodities in the export markets. It is a family owned business formed in the year 1996 by Mr. Himatlal Shah and his son Mr. Apoorva Shah as a partnership firm NHC Exports Corporation. It was converted into a private limited company in the year 2006. NIPL is currently recognized as Two Star Export House by the Office of Joint Director General of Foreign Trade. The company has been awarded ISO 9001:2008 certification in September 2009 that will be valid till September 2012. The company has its warehousing facility in Thane (Mumbai) and has setup a food processing plant at Pardi (near Vapi) in the state of Gujarat. The company has amalgamated with Midpoint Software and Electro Systems Ltd. and the High Court sanction for the same was given in August 2010. For FY 2010, NIPL reported PBT (Profit Before Tax) of INR1.69 crore on operating income of INR70.42 crore (provisional results). SAINSONS PULP: CRISIL Cuts Rating on INR322.5MM Term Loan to 'B+' ----------------------------------------------------------------- CRISIL has downgraded its ratings on Sainsons Pulp and Papers Ltd's bank facilities to 'B+/Negative/P4' from 'BB/Stable/P4+. Facilities Ratings ---------- ------- INR60 Million Cash Credit Limit B+/Negative (Downgraded from 'BB/Stable') INR322.5 Million Term Loan B+/Negative (Downgraded from 'BB/Stable') INR100 Million Letter of Credit P4 (Downgraded from 'P4+') INR27 Million Bank Guarantee P4 (Downgraded from 'P4+') The downgrade reflects deterioration in SPPL's financial risk profile, driven by aggressively debt-funded capital expenditure (capex) programme undertaken by the company and delay in project completion weakening its debt repayment ability. SPPL was initially setting up a facility for manufacturing writing and printing paper with capacity of 150 tonnes per day (tpd) for INR501 million; the project was scheduled to be completed by September 2009. However, the completion date was rescheduled to January 2010 and project cost increased to INR925 million as capacity was enhanced to 200 tpd. The project completion got further delayed to March 2010 with total project cost increasing again to INR1060 million in a debt-to-equity mix of 70:30. CRISIL believes that SPPL's debt protection metrics will remain weak over the medium term: SPPL's cash accruals will not be sufficient to meet its maturing term debt obligations of INR17.5 million in September 2010, and the company will have to rely on borrowings or infusion of equity from promoters. The rating reflects SPPL's below average-financial risk profile, marked by high gearing and weak debt protection metrics, and large working capital requirements. These rating weaknesses are partially offset by SPPL's promoter's experience in the paper industry. Outlook: Negative CRISIL believes that SPPL's cash accruals will be insufficient for meeting its maturing term debt obligations over then medium term; SPPL will depend entirely on borrowings, equity infusion by promoters, or debt restructuring. The rating may be downgraded if there is lesser-than-adequate equity infusion made by SPPL's promoters. Conversely, the outlook may be revised to 'Stable' if SPPL prevents its capital structure and liquidity from deteriorating further or manages to source more-than-expected equity-funding from promoters. About Sainsons Pulp SPPL was incorporated in 2005 for setting up a, waste paper-based writing and printing paper mill, with production capacity of 200 tonnes per day. The company's facility is located at Taliwal- Nichla in the district of Una in Himachal Pradesh. The company is promoted by Mr. Ramesh Kumar Saini, who has more than 18 years of experience in the paper industry. SHAHEED KARTAR: ICRA Assigns 'LB' Rating to INR8.75cr Bank Debts ---------------------------------------------------------------- ICRA has assigned "LB" rating to the INR8.75 crore fund-based and INR2.00 crore non fund based bank limits of Shaheed Kartar Singh Sarabha Charitable Trust. The rating takes into account modest scale of operations and adverse financial profile characterized by low profitability and weak coverage indicators. The rating is further constrained by stressed liquidity as reflected in the recent delays in servicing debt obligations. However the rating draws comfort from healthy occupancy levels and moderate gearing for the Trust. Shaheed Kartar Singh Sarabha Charitable Trust was incorporated under the Society Registration Act in the State of Punjab in 1998. The society operates three institutes providing courses at the graduate level and one charitable hospital all situated in Sarabha campus. The educational institutes being run by the SKSST are: * SKSS Nursing College * SKSS Dental College * SKSS Ayurvedic College * SKSS Charitable Hospital The trust has total strength of around 700 students with its 35% revenues coming from Nursing College, 33% from Ayurvedic College, 20% from Charitable Hospital and 12% from Dental College in FY10. SHAKTI POLYWEAVE: ICRA Assigns 'LBB' Rating to INR1.62cr Term Loan ------------------------------------------------------------------ ICRA has assigned an 'LBB' rating to the INR1.62 crore term loan and INR15 crore fund-based bank facilities of Shakti Polyweave Private Limited. The rating outlook is stable. ICRA has also assigned an 'A4' rating to the INR7 crore non-fund-based bank facilities of SPPL. The assigned ratings are constrained by SPPL's weak financial risk profile characterized by a high gearing & weak coverage indicators; its high working capital requirement, its feeble profitability due to limited value addition; exposure to volatile polymer prices; weak bargaining power with its raw material suppliers and relatively small scale of operations. The ratings also factor in the highly competitive business environment on account of a fragmented industry structure and the commoditized nature of SPPL's product, which result in price-based competition. With large part of the production being exported, the utilization of its facilities is linked to the economic prospects in these countries. The company is also exposed to fluctuation in exchange rates as large part of the revenues are derived from exports while the input and manufacturing cost incurred are mostly in domestic currency. The ratings, however, favorably factor in long track record of the promoters in the polymer industry and long association with various stockiest and distributors, which enhances its marketing position. About Shakti Polyweave Founded in December 1997, SPPL was promoted by Mr Hanskumar Agarwal and their family members for manufacturing and marketing of woven sacks. The plant was set up as an export oriented unit at GIDC Estate, Dholka, approximately 50 km from Ahmedabad and is in close proximity to Mundra & Pipavav ports and most of the exports are through a network of distributors/ stockiest's and are centered in USA and European countries. During the period ended 2009-10, the company reported net profit before tax of INR0. 9 crore on a turnover of INR71.9 crore. SHRI JAGDAMBA: ICRA Places 'LBB' Rating on INR49.2MM Term Loan -------------------------------------------------------------- ICRA has assigned an 'LBB' rating to the INR49.2 million term loan and INR73 million cash credit facilities of Shri Jagdamba Polymers Limited. The rating outlook is stable. ICRA has also assigned an 'A4' rating to the INR 31 million non-fund-based bank facilities of SJPL. The assigned ratings are constrained by SJPL's small scale of operations, high working capital extensive operations and leveraged capital structure as indicated by a gearing of 1.7 times as on March 31, 2010. The ratings also factor in the highly competitive business environment on account of a fragmented industry structure and the commoditized nature of SJPL's product, which result in price-based competition. Because of the large composition of exports in the sales mix, the company's prospects are linked to the economic performance in these countries. The large inventory holding period exposes it to the volatility in input prices. Also, the company is exposed to fluctuation in exchange rates as large part of the revenues are derived from exports while the input and manufacturing cost incurred are mostly in domestic currency. The ratings, however, favorably factors in long track record of the promoters in the polymer industry and long association with various stockists and distributors, which enhances its marketing position. About Shri Jagdamba Founded in May 1985, SJPL was promoted by Mr Ramakant Bhojnagarwala for manufacturing of woven bags and fabric on job work basis as well as marketing it directly to end customers and intermediaries. The plant was set up as an export oriented unit at GIDC Estate, Dholka, approximately 50 km from Ahmedabad and is in close proximity to Mundra & Pipavav ports. During the period ended 2009-10, the company reported net profit before tax of INR1.1 crore on a turnover of INR32.1 crore. SURYA PROCESSORS: Fitch Assigns 'BB-' National Long-Term Rating --------------------------------------------------------------- Fitch Ratings has assigned India's Surya Processors Private Limited a National Long-term rating of 'BB-(ind)'. The Outlook is Stable. At the same time, Fitch has assigned National ratings to SPPL's bank loans,: - INR224.5 million long-term bank loans: 'BB-(ind)'; - INR120 million fund-based working capital limits: 'BB- (ind)/'F4(ind)'; and - INR10 million non-fund based working capital limits: 'BB- (ind)'/'F4(ind)'. SPPL's ratings benefit from the longstanding experience of its promoters in fabric processing and its exposure to the more stable domestic textile market. The ratings also take into account the company's established position as a key manufacturer and trader of woven interlinings in the domestic market. The ratings are however constrained by SPPL's small scale of operations, track record of high leverage and gearing (partly on account of unsecured loans from promoters) and high working capital intensity. Its liquidity remained comfortable and cushioned due to the unused fund-based working capital limits (INR106.6 million as at end-March 2010). The liquidity was further supported by the regular infusion of unsecured interest free loans by the promoters and an equity infusion of INR33.6m in FY10. SPPL's liquidity is also supported by long-drawn debt maturities under Technology Upgradation Fund Scheme. SPPL has hitherto a moderate earnings profile with EBITDA margin (unaudited) of 9.8% in FY10, mainly constrained by the high cost of self-generated power (using furnace oil and diesel). Fitch notes that the company's ongoing INR222 million capex programme for the expansion of its weaving and fabric processing capacities coupled with the modernization of its existing unit in Ghaziabad by replacing obsolete machinery would lower the processing time and improve the product quality. SPPL expects major savings in its power costs by switching to state grid 33KV continuous supply connection in April 2010, and thus anticipates an improvement in its revenues and margins FY11 onwards. The capex also includes a yarn dyeing plant for higher quality dyed yarn fabrics. Positive rating triggers include SPPL's ability to demonstrate a significant growth in its EBITDA margins, which would also lead to deleveraging. Negative rating triggers include SPPL's inability to successfully execute or implement the ongoing capex project, and/or a decline in its EBITDA margins, which could also deteriorate its leverage and coverage metrics. Set up in 1985, SPPL is a fabric weaver and processor, with a fabric processing capacity of 100,000 meters a day. As per SPPL's FY10 provisional and unaudited figures, it reported revenues of INR567 million, an EBITDA of INR55.4 million, net income of INR17.7 million and a net debt/EBITDA ratio of 6.5x. ========= J A P A N ========= INCUBATOR BANK: Starts Refunding Depositors Covered Under Scheme ---------------------------------------------------------------- Kyodo News reports that Incubator Bank of Japan has started refunding depositors at some of its branches under the deposit protection plan, which caps the value of refund payments. Kyodo News relates the bank on Monday began the process of refunding each depositor their deposits -- up to JPY10 million plus interest earned -- guaranteed by the nation's deposit protection plan. According to the news agency, the state-backed Deposit Insurance Corp. of Japan said Sunday that around JPY11 billion, or about 1.9%, of deposits at the failed Incubator Bank will not be covered by the deposit protection scheme. The amount belongs to 3,423, or about 2.7%, of depositors with the lender for small businesses, Kyodo News notes. Kyodo News discloses that refunds related to unprotected amounts will be decided after Deposit Insurance Corp. examines the bank's asset components. There is a high possibility that some portions will not be returned and refunds are unlikely to be made for at least a year. As reported in the Troubled Company Reporter-Asia Pacific on September 13, 2010, Kyodo News said the Incubator Bank of Japan Ltd. filed for bankruptcy proceedings with the Financial Services Agency under the Deposit Insurance Law. 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. 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. SHINSEI BANK: Moody's Assigns Rating on Callable Subordinate Notes ------------------------------------------------------------------ Moody's Investors Service has assigned a Baa2 rating to the EUR347,228,000 Euro-Denominated Fixed to Floating Rate Callable Subordinated Notes due 2020 issued by Shinsei Bank, Limited. The debt was assigned a provisional (P)Baa2 rating on August 31, 2010, and this rating assignment is in response to the formal signing of the debt agreement. At the same time, Moody's has placed this rating on review for possible downgrade. Ratings Rationale Shinsei's above-mentioned senior subordinated debt is rated Baa2, one notch below the bank's debt rating of Baa1. The Baa1 derives from the combination of its D+ BFSR (baseline credit assessment of Ba1), systemic support input of Aaa (JGB, plus two notches) for Japan, and Moody's assessment -- based on its importance as a bank operating nationwide in Japan -- that the probability of systemic support is "very high." Shinsei Bank, Limited, headquartered in Tokyo, had consolidated assets of JPY10.9 trillion as of June 30, 2010. Regulatory Disclosures MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process. The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. WMT GLOBAL: S&P Retains CreditWatch Negative on Note Ratings ------------------------------------------------------------ Standard & Poor's Ratings Services kept the ratings on the class A to C fixed-rate notes issued under the WMT Global Funding I Inc. transaction on CreditWatch with negative implications. At the same time, S&P affirmed its ratings on classes D and E. S&P had initially placed the ratings on classes A to E on CreditWatch negative on April 9, 2009, and followed up with several other rating actions. The servicer has been working to sell the properties backing the transaction's underlying loan since the loan defaulted in October 2008. According to the servicer, although the sale of the properties is being finalized and discussions between the relevant parties with a view to entering a final agreement shortly are in progress, the sale has yet to be completed. In addition, the amount of time left until the transaction's legal final maturity date is limited (about seven weeks). Although it is highly likely that the proceeds from the sale of the collateral properties will exceed the principal amount of the class A to C notes, S&P kept these three classes on CreditWatch with negative implications because S&P still see a risk of non- completion of the collection process before the transaction's legal final maturity date. Nevertheless, S&P may need to consider further rating actions if the collection process drags on as the legal final maturity date draws closer. WMTGF I is a single-borrower multi-asset CMBS transaction. The notes issued under this transaction are backed by a loan extended to a single borrower. The loan was originally secured by eight extended-stay limited-service apartment properties. The transaction was arranged by Lehman Brothers Japan Inc. Capital Servicing Co. Ltd. acts as the servicer for this transaction. Ratings Kept On Creditwatch Negative WMT Global Funding I Inc. JPY10.7 billion commercial mortgage backed notes due November 2010 Class Rating Initial Issue Amount ----- ------ -------------------- A BB (sf)/Watch Neg JPY5.9 bil. B BB- (sf)/Watch Neg JPY1.4 bil. C B- (sf)/Watch Neg JPY1.2 bil. Ratings Affirmed Class Rating Initial Issue Amount ----- ------ -------------------- D CCC (sf) JPY1.0 bil. E CCC (sf) JPY1.2 bil. WMT GLOBAL: S&P Downgrades Ratings on Various Classes of Notes -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on classes A-1 to D fixed-rate notes issued under the WMT Global Funding II Inc. transaction, while keeping the ratings on these five classes on CreditWatch with negative implications, where they had been placed on Sept. 2, 2010. At the same time, S&P affirmed S&P's 'CCC (sf)' rating on class E issued under the same transaction. S&P downgraded classes A-1 and A-2 and kept classes A-1, A-2, and B on CreditWatch with negative implications because S&P believes that collection from the properties backing the transaction's underlying loan (the loan defaulted in October 2009) is now less likely to be completed by the legal final maturity date in November 2011. Since the collection process is dragging on mostly due to the characteristics of the properties, and given the limited amount of time remaining until the transaction's legal final maturity date (about 14 months), S&P hold the view that the likelihood of completion of the collection process (by the transaction's legal final maturity date) is no longer commensurate with the current ratings. However, S&P may need to consider further rating actions on class A-1, A-2, and B if prospects with regard to the completion of the collection process remain unclear as the transaction's legal final maturity date draws closer, S&P downgraded classes B to D because S&P has lowered its assumption with respect to the likely collection amount from the properties in question. Meanwhile, S&P kept classes C and D on CreditWatch with negative implications because the likely collection amount may decline further, depending on the progress of collection. S&P intend to review its ratings on classes B to D after considering a number of factors, including information that S&P receive from the servicer regarding the progress of collection, as well as the cash flow performance of the properties. WMT Global Funding II Inc. is a single-borrower multi-asset CMBS transaction. The notes issued under this transaction are backed by a loan extended to a single borrower. The loan was originally secured by 10 extended-stay limited-service apartment properties. The transaction was arranged by Lehman Brothers Japan Inc. Capital Servicing Co. Ltd. acts as the servicer for this transaction. Ratings Lowered And Kept On Creditwatch Negative WMT Global Funding II Inc. JPY9.3 billion commercial mortgage-backed notes due November 2011 Class To From Initial Issue Amount ----- -- ---- -------------------- A-1 AA (sf)/Watch Neg AAA (sf)/Watch Neg JPY4.0 bil. A-2 AA (sf)/Watch Neg AAA (sf)/Watch Neg JPY1.0 bil. B A+ (sf)/Watch Neg AA (sf)/Watch Neg JPY1.2 bil. C BB- (sf)/Watch Neg BBB- (sf)/Watch Neg JPY1.1 bil. D B- (sf)/Watch Neg B (sf) /Watch Neg JPY0.9 bil. Rating Affirmed Class Rating Initial Issue Amount ----- ------ -------------------- E CCC (sf) JPY1.1 bil. ==================== N E W Z E A L A N D ==================== INVESTMENT RESEARCH: In Talks With Banks Over Covenant Breach ------------------------------------------------------------- Investment Research Group said it expects to report an unaudited estimated net loss before tax from operations of approximately NZ$890,000 for the year ended March 31, 2010. This compares to the previously advised figure of a NZ$175,000 profit. The company said the result reduction arose from a writedown of the carrying value of various databases and goodwill in accordance with IFRS and other year-end adjustments. IRG said it was expecting the auditors to qualify their audit report on the carrying values of some assets and their final opinion will be determined upon outcome of the discussions being held with the bank and the director's assessment of bank and shareholder support. Subsequent to the year end, the largest shareholder, Managing Director Brent King, has continued to provide support in the form of advances to the company totalling NZ$440,776. With these changes, IRG said it will be in breach of its bank covenants. The Company is now in discussions with its bank on solutions. In June this year, IRG had its stock and warrants suspended after failing to file its full-year accounts for the year ending March 31, 2010. About IRG New Zealand-based Investment Research Group Limited (NZE:IRG) -- http://www.irg.co.nz/-- formerly known as Viking Capital Limited, is engaged in investing in and providing professional services to organizations in New Zealand and overseas. The Company's subsidiary businesses are IRG Media, IRG Portfolio and IRG Investment Advisers. IRG Media includes all the media publications of the Company, including New Zealand Investor Monthly an investment magazine; Equity weekly, an e-mail Newsletter; MoneyOnline newsletter; McEwen Investment Report, a weekly subscription newsletter; IRG Investment year Book, an yearbook giving five-year data on listed New Zealand and Australian shares. IRG Portfolio focuses on portfolio service using Aegis, the custodial platform. MUTUAL FINANCE: Receivers Can't Estimate Government Recovery Yet ---------------------------------------------------------------- The receivers of Mutual Finance said three months into the process they still can't say how much the government will get back under the retail deposit guarantee, Paul McBeth at BusinessDesk reports. According to BusinessDesk, Grant Graham and Brendon Gibson of KordaMentha said "at this time it is not possible to estimate the level of recovery" from Mutual's loan book worth some NZ$8.2 million and other assorted assets. The receivers expect the Inland Revenue to put in a claim, though they doubt there will be enough to make a return to unsecured creditors. Mutual Finance is an Auckland-based financial institution with around 400 depositors and approximately NZ$8 million in guaranteed deposits. As reported in Troubled Company Reporter-Asia Pacific on July 16, 2010, Mutual Finance was placed into receivership, with NZ$8 million of deposits covered by the retail deposit guarantee scheme. Covenant Trustee appointed Brendan Gibson and Grant Graham of KordaMentha as receivers of Mutual Finance. The finance company said it had been in technical breach of one of its covenants and its trustee, Covenant Trustee, had deemed there was a risk of a "cash flow mismatch" between the timing of asset sales and payments to depositors. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Sept. 20, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Fordham Law School, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 23-25, 2010 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 1, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE ABI/UMKC Midwestern Bankruptcy Institute Kansas City Marriott Downtown, Kansas City, Kan. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 6-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Oct. 11, 2010 AMERICAN BANKRUPTCY INSTITUTE Chicago Consumer Bankruptcy Conference Standard Club, Chicago, Ill. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 15, 2010 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Hilton New Orleans Riverside, New Orleans, La. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 29, 2010 (tentative) AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium The Savoy, London, England Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. __, 2010 AMERICAN BANKRUPTCY INSTITUTE Delaware Views from the Bench and Bankruptcy Bar Hotel du Pont, Wilmington, Del. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 11, 2010 AMERICAN BANKRUPTCY INSTITUTE Detroit Consumer Bankruptcy Conference Hyatt Regency Dearborn, Dearborn, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 9-11, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, a JW Marriott Resort & Spa, Scottsdale, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Jan. 20-21, 2011 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colo. Contact: 1-703-739-0800; http://www.abiworld.org/ January 26-28, 2011 TURNAROUND MANAGEMENT ASSOCIATION TMA Distressed Investing Conference Aria Las Vegas Contact: http://www.turnaround.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 (tentative) AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***