/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/101026.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, October 26, 2010, Vol. 13, No. 211 Headlines A U S T R A L I A ALLIED BRANDS: Units in Receivership; Baskin Ends Franchise Deal TASCOT TEMPLETON: Placed in Liquidation WRIGHT GLOBAL: In Liquidation; Assets Still Unaccounted For H O N G K O N G REXODAN INTERNATIONAL: Members' Final Meeting Set for November 19 S.G.S. PRODUCTS: Young and Wong Step Down as Liquidators SEA RUBY: Final General Meeting Set for November 13 SINO FORUM: Final General Meeting Set for November 13 SINO STATE: Final Meeting Set for November 19 STAREASTWORKS CONCEPT: Final General Meeting Set for November 13 STREAMVPN ASIA: Middleton and Cowley Step Down as Liquidators TRANSASIA ENGINEERING: Members' Final Meeting Set for November 15 UNITED PROSPER: Commences Wind-Up Proceedings VEGOO LIMITED: Final Meetings Slated for November 17 WELL BRIGHT: Final General Meeting Set for November 13 YOGA PLUS: Au and Wong Step Down as Liquidators I N D I A AYYAN FIREWORKS: ICRA Places 'LBB' Rating on INR2.2cr Term Loan BYOND TECH: CRISIL Reaffirms 'B+' Rating on INR50MM Cash Credit CEMEX ENGINEERS: CRISIL Reaffirms 'C' Rating on INR70M Cash Credit K. C. SAREE: CRISIL Assigns 'BB-' Rating to INR60 Mil. Cash Credit KANCHAN INDIA: ICRA Assigns 'LBB+' Rating to INR13.84cr LT Loan KINFOTECH PRIVATE: ICRA Assigns 'LB' Rating to INR25cr Term Loan NIRANI SUGARS: ICRA Assigns 'LB+' Rating to INR202.47cr Term Loan SIGMA CONSTRUCTION: CRISIL Lifts Rating on INR49MM Credit to 'BB' J A P A N AIFUL CORP: Plans to Sell Unit, Shut Down 30 Outlets to Cut Cost JAPAN AIRLINES: Expected to Dismiss Staff to Hit Job Cut Target N E W Z E A L A N D CRAFAR FARMS: Stock Court Case Nearing End X X X X X X X X * BOND PRICING: For the Week October 18 to October 22, 2010 - - - - - ================= A U S T R A L I A ================= ALLIED BRANDS: Units in Receivership; Baskin Ends Franchise Deal ---------------------------------------------------------------- James Thomson at SmartCompany reports that two key subsidiaries of Allied Brands Ltd. have been placed into receivership after Dunkin' Brands, the US owner of the Baskin Robbins brand, terminated Allied's Australian master franchise agreement. According to SmartCompany, Dunkin' Brands decision triggered Allied's major lender, Westpac, to appoint receivers and managers from McGrath Nicol to two Allied Brands subsidiaries -- Allied Brands Service and Allied Brands Finance. SmartCompany relates Allied Brands, which has been in a trading halt since September 24, said in a statement to the Australian Securities Exchange that it is "in discussions with its secured creditors and will notify the market as soon as decisions are made regarding the position of the company and its remaining companies". However, SmartCompany notes, the loss of the company's flagship Baskin Robbins chain leaves Allied with few remaining business units and very few options. Allied chief executive Sean Corbin told SmartCompany earlier this month that retaining the Baskin Robbins franchise was crucial to Allied Brands' survival. According to SmartCompany, US franchise brand manager Dunkin' Brands, which owns the global rights to the Baskin Robbins name, said it will now provide support directly to Baskin Robbins franchises. It is not known whether Dunkin's decision is an interim measure, and whether it may look to find another local brand manager in the future, SmartCompany adds. 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. As reported in the Trouble Company Reporter-Asia Pacific on Sept. 15, 2010, the Sydney Morning Herald said Allied Brands 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. SMH said 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. TASCOT TEMPLETON: Placed in Liquidation --------------------------------------- ABC News reports that Tascot Templeton Carpets has been placed in liquidation but administrators said it is still not too late to sell the business. A creditors' meeting on Friday agreed to wind up the company and sell off its assets, the report says. Tascot owes about 80 companies AU$5 million but the majority are not likely to be paid, ABC News reports. According to ABC News, fifty jobs have been lost since last month and administrator Paul Cook said the remaining 100 are likely to go by mid-December. ABC News relates Mr. Cook said it is still possible a buyer can be found to run the company but it is a big task. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 24, 2010, ABC News said Tascot Templeton Carpets went into administration after orders dried up, leaving 150 jobs with the carpet weaving company at risk. The Company was offered State government financial assistance last year when it reported demand for high-end carpet had stalled. Based in East Devonport, Australia, Tascot Templeton Carpets -- http://www.tascot.com.au/-- designs, manufactures and distributes carpets for both residential and commercial applications. The Company was established in 1961. WRIGHT GLOBAL: In Liquidation; Assets Still Unaccounted For ----------------------------------------------------------- Kate Kachor at InvestorDaily reports that Wright Global Investments has been placed in liquidation, with the location of assets believed to run into the hundreds of thousands of dollars yet to be accounted for. According to InvestorDaily, WGI's administrator, Peter Ngan of Ngan & Co, filed a special resolution with ASIC to wind up the company on September 30, 2010. On the same day, InvestorDaily relates, Mr. Ngan resigned as WGI administrator and assumed the role of company liquidator at the request of WGI creditors. InvestorDaily says that in minutes of meetings of WGI creditors on September 23, individual creditors continued to question the location of company assets, including alleged unpaid adviser commissions. "The chairman [Ngan] responded that based on evidence, authorized representatives are unsecured creditors of the company and funds received from product providers are now mixed funds and were banked into the company's operating bank account," the minutes said, according to InvestorDaily. InvestorDaily relates the minutes noted that one creditor requested it be noted that the company had mixed funds in its accounts. The minutes also noted a former WGI employee, believed to be linked to the firm's compliance department, was alleged to have taken assets in the company, InvestorDaily says. Former WGI director Graham Kinder denied the allegations, stating experts had ruled out the employee for theft. Wright Global Investments is a dealer group linked to Trio Capital's controversial collapse. It has a license from the Australian Securities and Investments Commission to act as a financial planner. The business licenses about 60 planners as authorized representatives in cities including Sydney, Melbourne and Perth. Wright Global Investments was placed in voluntary administration in August 2010. Ngan and Co. was appointed administrator. Former WGI director Graham Kinder said at the time of the administrator's appointment, WGI had traded solvently as a company. However, concerns surrounding missing assets proved too costly for the company to recover and he said it would more than likely become insolvent. ================ H O N G K O N G ================ REXODAN INTERNATIONAL: Members' Final Meeting Set for November 19 ----------------------------------------------------------------- Members of Rexodan International Limited will hold their final meeting on November 19, 2010, at 11:00 a.m., at 26th Floor, Citicorp Centre, 18 Whitfield Road, causeway Bay, in Hong Kong. At the meeting, Leong Ting Kwok David, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. S.G.S. PRODUCTS: Young and Wong Step Down as Liquidators -------------------------------------------------------- Isabelle Angeline Young and John Chi Wai Wong stepped down as liquidators of S.G.S. Products Limited on September 29, 2010. SEA RUBY: Final General Meeting Set for November 13 --------------------------------------------------- Members and creditors of Sea Ruby Ltd will hold their final general meetings on November 13, 2010, at 11:15 a.m., and 11:30 a.m., respectively at Room 1701, 17/F., Fortune Commercial Building, 362 Sha Tsui Road, Tsuen Wan, New Territories, in Hong Kong. At the meeting, Chan Chung Mo, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SINO FORUM: Final General Meeting Set for November 13 ----------------------------------------------------- Members and creditors of Sino Forum Ltd will hold their final general meetings on November 13, 2010, at 12:00 p.m., and 12:15 p.m., respectively at Room 1701, 17/F., Fortune Commercial Building, 362 Sha Tsui Road, Tsuen Wan, New Territories, in Hong Kong. At the meeting, Chan Chung Mo, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SINO STATE: Final Meeting Set for November 19 --------------------------------------------- Members and creditors of Sino State Development Limited will hold their final meetings on November 19, 2010, at 10:00 a.m., and 11:00 a.m., respectively at Jardine House, 5th Floor, 1 Connaught Place, Centra, in Hong Kong. At the meeting, Tsui Kei Pang and Leung Fung Yee Alice, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. STAREASTWORKS CONCEPT: Final General Meeting Set for November 13 ---------------------------------------------------------------- Members and creditors of StarEastWorks Concept Ltd will hold their final general meetings on November 13, 2010, at 12:45 p.m., and 1:00 p.m., respectively at Room 1701, 17/F., Fortune Commercial Building, 362 Sha Tsui Road, Tsuen Wan, New Territories, in Hong Kong. At the meeting, Chan Chung Mo, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. STREAMVPN ASIA: Middleton and Cowley Step Down as Liquidators ------------------------------------------------------------- Edward Simon Middleton and Patrick Cowley stepped down as liquidators of Streamvpn Asia Limited on October 15, 2010. TRANSASIA ENGINEERING: Members' Final Meeting Set for November 15 ----------------------------------------------------------------- Members of Transasia Engineering co. Limited will hold their final meeting on November 15, 2010, at 10:00 a.m., at Unit 803, 8/F., Shanghai Industrial Investment Building, 48-62 Hennessy Road, Wanchai, in Hong Kong. At the meeting, Chan Kam Man, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. UNITED PROSPER: Commences Wind-Up Proceedings --------------------------------------------- Members of United Prosper Limited, on October 6, 2010, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Cheng Hok Cheung Room 1406, King Centre 23 Dundas Street, Mongkok Kowloon, Hong Kong VEGOO LIMITED: Final Meetings Slated for November 17 ---------------------------------------------------- Creditors and Contributories of Vegoo Limited will hold their final meetings on November 17, 2010, at 2:30 p.m., and 3:00 p.m., respectively at Unit 511, Tower 1, Silvercord, 30 Canton Road, Tsimshatsui, Kowloon, in Hong Kong. At the meeting, Ho Man Kit, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. WELL BRIGHT: Final General Meeting Set for November 13 ------------------------------------------------------ Members and creditors of Well Bright (Asia) Ltd will hold their final general meetings on November 13, 2010, at 1:30 p.m., and 1:45 p.m., respectively at Room 1701, 17/F., Fortune Commercial Building, 362 Sha Tsui Road, Tsuen Wan, New Territories, in Hong Kong. At the meeting, Chan Chung Mo, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. YOGA PLUS: Au and Wong Step Down as Liquidators ----------------------------------------------- Au Wai Keung and Wong Kam Wah stepped down as liquidators of Yoga Plus Limited on October 15, 2010. ========= I N D I A ========= AYYAN FIREWORKS: ICRA Places 'LBB' Rating on INR2.2cr Term Loan --------------------------------------------------------------- ICRA has assigned 'LBB' rating to the INR2.2 crore term loan facilities and the INR3.8 crore fund-based facilities of Ayyan Fireworks Factory Private Limited. The outlook on the long-term rating is stable. The rating considers the long standing presence of promoters in the fireworks industry and conservative capital structure. The rating is however constrained by the small scale of the Company's operations, which restrict scale economics and financial flexibility, and its debt-funded capital expenditure plans, which are likely to stretch the capital structure and cash flows in the medium term. While favorable demographic factors like increasing population and rising purchasing power are expected to drive demand growth, the Company operates in an industry characterised by high competition from larger players and from a large number of unorganised players. About Ayyan Fireworks AFFPL was incorporated in 1985 by Late Mr. A. Grahadurai, Mr. A. Vairaprakasam, Mrs. G. Bhavani and Mrs. V. Meera, after the promoters' split from National Fireworks Limited. The Company, which commenced operations in 1989, is primarily engaged in the manufacture of fire-crackers. AFFPL is wholly-owned by the promoter (Mr. G Abiruben) and his family members, directly or indirectly. The business is presently managed by Mr. G Abiruben. The Company manufactures fire-crackers under the brand name "Bunny". It has six manufacturing facilities and employs around 1,200 workers (paid on piece-rate basis) in and around Sivakasi, Tamil Nadu. About 80% of the sales happen towards orders for Diwali, with the remaining (off-season) sales being towards marriages, festivals, etc. AFFPL derives around 70% of its revenues from the southern states of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. Recent results (unaudited) AFFPL reported profit before tax (PBT) of INR1.4 crore on operating income of INR18.8 crore during 2009-10, against PBT of INR1.1 crore on operating income of INR16.4 crore for the corresponding previous fiscal. BYOND TECH: CRISIL Reaffirms 'B+' Rating on INR50MM Cash Credit --------------------------------------------------------------- CRISIL's ratings on the bank facilities of Byond Tech continue to reflect Byond Tech's small scale of operations, limited track record in the electronic goods trading business, large working capital requirements, vulnerability to decline in product prices and volatility in foreign exchange rates, and weak financial risk profile. The impact of these weaknesses is mitigated by Byond Tech's increasing geographical reach and growing distributor network. Facilities Ratings ---------- ------- INR50 Million Cash Credit B+/Stable (Reaffirmed) INR100 Million Letter of Credit P4 (Reaffirmed) Outlook: Stable CRISIL believes that Byond Tech will continue to benefit from stabilization of operations and healthy demand for mobile phones in the Indian market. The outlook may be revised to 'Positive' if Byond Tech scales up its operations and improves its profitability, thereby generating sizeable cash accruals. Conversely, the outlook may be revised to 'Negative' if Byond Tech's financial risk profile deteriorates, most likely because of significant pressure on revenues and profitability. Update Byond Tech has scaled up its operations in 2009-10 (refers to financial year, April 1 to March 31), and has generated healthy sales of INR474 million in its first full year of operations. The operating margin was, however, low at 3.5 per cent in 2009-10 because of intense market competition. Because of its trading operations, the firm has no capital expenditure plan for the medium term. Large working capital requirements because of increased scale of operations has, however, resulted in the firm's high gearing of 2.6 times as on March 31, 2010. About Byond Tech Byond Tech was set up in 2008 as a partnership firm by Mr. Subash Mutha, Mr. Prashant Mutha, and Mr. Prashant Bora. The firm trades in mobile phones and accessories, and laptops. It commenced operations in December 2008 by marketing and distributing China- made mobile phones under its own brand BYOND. The firm places orders with manufacturing entities in China in line with demand in India. The firm distributes imported products in India through distributors and super distributors. Byond Tech reported, on provisional basis, a profit after tax of INR7 million on net sales of INR474 million for 2009-10 a PAT and net sales of INR0.3 million and INR43 million respectively for the previous year. CEMEX ENGINEERS: CRISIL Reaffirms 'C' Rating on INR70M Cash Credit ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Cemex Engineers continue to reflect Cemex's weak liquidity, which has resulted in the firm delaying repayment of term loan (not rated by CRISIL). Facilities Ratings ---------- ------- INR70 Million Cash Credit C (Reaffirmed) INR50 Million Bank Guarantee P4 (Reaffirmed) The ratings also reflect Cemex's below-average financial risk profile, small scale of operations in the construction industry, and the geographical concentration in its revenue profile. These rating weaknesses are partially offset by Cemex's promoters' experience in the construction industry. Cemex, promoted by Mr. Santhosh Sebastian Anthony as a proprietorship firm in 1987, was reconstituted as a partnership firm in 1989. The firm constructs residential and commercial buildings in Kerala. Cemex reported, on provisional basis, a profit after tax (PAT) of INR22 million on net sales of INR306 million for 2009-10 (refers to financial year, April 1 to March 31); it reported a PAT of INR16 million on net sales of INR54 million for the previous year. K. C. SAREE: CRISIL Assigns 'BB-' Rating to INR60 Mil. Cash Credit ------------------------------------------------------------------ CRISIL has assigned its 'BB-/Stable' rating to K. C. Saree Emporium Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR60 Million Cash Credit BB-/Stable (Assigned) INR20 Million Proposed Cash Credit BB-/Stable (Assigned) The ratings reflect KC's weak financial risk profile, marked by weak debt protection metrics and small net worth, and exposure to risks related to intense competition in the saree segment. These rating weaknesses are partially offset by strong track record of KC's promoters in the saree trading business. Outlook: Stable CRISIL believes that KC's business risk profile will remain stable on account of promoters' long standing experience, however, financial risk profile will continue to remain weak over the medium term because of low margins owing to the trading nature of buisness and large working capital requirements. The outlook may be revised to 'Positive' if the company improves its operating margin and increases its scale of operation, simultaneously improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company's operating margin declines sharply, or it undertakes major debt-funded capital expenditure programmes, further constraining its financial risk profile. About K. C. Saree KC, based in Kolkata, was set up by Mr. Dharamchand Jain in 1984 as a proprietorship concern (NAME). The firm was reconstituted as a private limited company in 2003-04 (refers to financial year, April 1 to March 31) as KC. Presently, the operations are managed by Mr. Vikas Jain, son of Mr. Dharamchand Jain. The company trades in sarees. The company purchases synthetic fabric and outsources the process of embroidering. KC purchases sarees from Kolkata, Varanasi (Uttar Pradesh) and Surat (Gujarat. The company has a customer base of more than 1,000 retailers in Kolkata, Chennai, Hyderabad, Mumbai, Nagpur (Maharashtra), as well as in Kerala. KC reported a profit after tax (PAT) of INR0.94 million on net sales of INR280.2million for 2009-10, against a PAT of INR0.80 million on net sales of INR259.3 million for 2008-09. KANCHAN INDIA: ICRA Assigns 'LBB+' Rating to INR13.84cr LT Loan --------------------------------------------------------------- ICRA has assigned an 'LBB+' rating to INR13.84 crore long-term loan and INR5.00 million long term fund-based limits of Kanchan India Limited. ICRA has assigned stable outlook to the rating. The ratings take into account company's weak profitability, highly fragmented and competitive nature of industry and fluctuation in prices of man-made fibre being closely linked to movements in crude oil prices. The entry barriers to the business are low, coupled with limited pricing power. The rating however, takes into account promoters' experience and track record in manufacturing synthetic fabric from polyester viscose (PV) yarn. ICRA has positively factored in backward integration initiative of KIL that shall start yielding benefits 2010-11 onwards. The integrated operations from yarn to fabric places the company in better position than smaller weaving units in Bhilwara market. About Kanchan India Incorporated in 1996, Kanchan India Limited is one of the players in Bhilwara cloth market manufacturing synthetic fabrics from polyester viscose (PV) yarn. KIL has merged other group companies involved in processing fabric (including dyeing unit) and manufacturing woollen yarn in itself w.e.f. 01.04.2008 to rationalise administration cost and overheads. KIL has ventured into backward integration and set up a spinning unit with an installed capacity of 25,344 spindles for ~Rs. 66.0 crore which commenced operations in September 2009. In response to market scenario KIL installed another 9,216 spindles in November 2009 at a project cost of INR23.2 crore. KINFOTECH PRIVATE: ICRA Assigns 'LB' Rating to INR25cr Term Loan ---------------------------------------------------------------- ICRA has assigned rating of 'LB' to INR25 crore Term loan and INR5 crore Fund based limits of Kinfotech Private Limited. The rating takes into account Kinfotech's long track record in software reselling business, its professional management and strengths drawn from its association with Acropetal Technologies Limited (Acropetal, rated LBBB-/ A3 by ICRA). The ratings are however constrained by Kinfotech's current high gearing level (3.2 times as on March 31, 2010), its high repayment obligation in medium to long term and the intensely competitive nature of the industry which is expected to aggravate further on account relatively low entry barrier of the business. Besides, while assigning the rating ICRA has also taken note of instances of delays in bank account servicing by the company in the recent past. Kinfotech, founded in 1990 by Mr. Prabhakar Kini, is mainly into the business of software reselling. During FY2009, Mr. Ravi Kumar, the founder and Managing Director of Acropetal, acquired nearly 35% stake in the company from Mr. Prabhakar Kini with intention to acquire majority stake in the company (to the extent of 91%) in due course. The company generated a PAT of INR3.7 crore during FY2010 over an Operating Income of INR40.1 crore. NIRANI SUGARS: ICRA Assigns 'LB+' Rating to INR202.47cr Term Loan ----------------------------------------------------------------- ICRA has assigned a rating of 'LB+' to INR202.47 Crore Term loan and INR32.18 Crore cash credit of Nirani Sugars Limited. ICRA's rating action draws from the stretched capital structure following significant debt funding for expansion of the plant. Thus NSL has significant interest and debt repayment obligations in near to medium term. High debt levels coupled with modest accruals have resulted in stretched liquidity as is evident in constrained gross cash flow, delays in debt servicing as well as stretched working capital utilization in the recent past. Continued capex in commissioning of distillery unit as well refinery along with further expansion would continue to affect the liquidity in the near future. The ability of the company to perform well going forward is constrained by the availability of sugar cane for the expanded capacity, considering strong competitive scenario in the vicinity of the plant. However the plant is situated in a North Karnataka region with good cane availability as well historically strong sugar recovery. The comfort is also drawn from the experience of the promoter and management in executing projects and in the sugar industry. The forward integration into cogeneration and distillery are expected to provide substantial de-risking from the volatilities sugar business; however Agro- climatic risks as inherent in the sugar-industry as well as continued vulnerability to government/regulatory policies on cane price, sugar-release and cogeneration tariffs remain constraints. About Nirani Sugars NSL was incorporated in 1995 in Mudhol Tq of North-Karnataka. It is promoted by Mr. Murugesh Nirani. The 1250 TCD sugar unit was commissioned in 1997 and since then NSL has expanded to 10000 TCD along with 62 MW cogeneration facility. NSL is further expanding the cane crushing capacity to 15000 TCD and is also commissioning a 120 klpd distillery and refinery for raw sugar processing, all of which are expected to get commissioned in second half of FY2011 (July-June). SIGMA CONSTRUCTION: CRISIL Lifts Rating on INR49MM Credit to 'BB' ----------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Sigma Construction to 'BB/Stable' from 'BB-/ Stable', while reaffirming the short-term rating at 'P4+'. Facilities Ratings ---------- ------- INR49 Million Cash Credit Limits BB/Stable (Upgraded from BB-/Stable) INR131 Million Bank Guarantee$ P4+ (Reaffirmed) The upgrade reflects the improvement in Sigma's financial risk profile, supported by the improvement in its net worth and gearing. Sigma's net worth increased to around INR88 million as on March 31, 2010, from INR29 million as on March 31, 2008; correspondingly, the firm's gearing improved to around 0.33 times as on March 31, 2010, from 2.96 times as on March 31, 2008. The firm's net worth improved on the back of increasing net cash accruals; Sigma generated accruals of around INR67 million over the two years to 2009-10 (refers to financial year, April 1 to March 31), against capital withdrawal of around INR5 million during the period. The ratings reflect Sigma's limited revenue diversity, exposure to competition in the construction industry, and its large working capital requirements. These rating weaknesses are partially offset by the extensive experience of Sigma's proprietor in the engineering industry and its moderate financial risk profile, marked by healthy gearing and debt protection measures. Outlook: Stable CRISIL believes that Sigma will continue to benefit from the industry experience of its proprietor and its moderate order book, which provides the firm with near-term revenue visibility. The outlook may be revised to 'Positive' if Sigma's liquidity and net worth improve considerably. Conversely, the outlook may be revised to 'Negative' in case of time or cost overruns in Sigma's ongoing and future projects, or if the firm contracts large debt to fund capital expenditure, or undertakes diversification into unrelated businesses. About Sigma Sigma began operations as a proprietorship concern in 1994 with Mr. A K Bhasin as proprietor. Mr. Bhasin has experience in electrical engineering, having worked with Associated Electrical Industries (a British firm engaged in electrical engineering activities) and Calcutta Electric Supply Corporation. Sigma executes turnkey contracts for the power industry. It undertakes erection, testing, and installation of equipment, auxiliaries, and motors for generating stations and switch yards. In 2006-07, the firm started trading by supplying equipment used in power stations and switch yards. Sigma posted a provisional net profit of INR42 million on provisional net sales of INR358 million for 2009-10, against a profit after tax (PAT) of INR21 million on net sales of INR571 million for 2008-09. ========= J A P A N ========= AIFUL CORP: Plans to Sell Unit, Shut Down 30 Outlets to Cut Cost ---------------------------------------------------------------- Aiful Corp. plans to sell its subsidiary business-loan lender Businext Corp. and Tokyo Star Bank Ltd. is strongly considered a prospective buyer, Kyodo News reports citing sources. According to Kyodo News, sources said that along with the sale, Aiful expects to cut several hundred million yen in costs by pulling its TV commercials and additionally shutting down some 30 unmanned outlets in northern and central Japan as part of its revival efforts. Kyodo News relates that sources said Businext, lender for sole proprietors and small to midsize firms, was set up in 2001 with Aiful investing 60% of the capital and Sumitomo Trust & Banking Co. funding the rest. Sumitomo Trust has agreed to the planned sale, the sources said, the report adds. Kyodo News says Aiful has been trying to revive itself under the so-called alternative debt-resolution procedure since last year and restructuring its business under a rehabilitation plan agreed with its 65 creditors, including Sumitomo Trust. About Aiful Aiful Corporation (TYO:8515) -- http://www.ir-aiful.com/-- is a Japan-based financial service provider. The company is engaged in the provision of small-lot uncollateralized loan for individual consumers, business loan for individuals, as well as mortgage collateral and credit card services, in addition to the collection and management of debts. Other business activities the Company is involved in include the development, investment and nurture of venture companies, as well as the leasing of real estates. Headquartered in Kyoto, the Company has 29 subsidiaries and two associated companies. * * * As of October 20, 2010, Aiful Corp. carries Moody's Investor Service's 'Caa1' issuer, long-term and unsecured debt ratings. JAPAN AIRLINES: Expected to Dismiss Staff to Hit Job Cut Target --------------------------------------------------------------- Kyodo News reports that Japan Airlines Corp. is expected to dismiss some employees to meet its job reduction target, as the number of employees taking the early retirement benefit offer slipped below the target by the Friday deadline. Kyodo News relates that JAL sources said the carrier made the offer to 1,500 employees, including some 600 cabin attendants and some 370 pilots from Sept 3 to Friday, but the number of those who accepted fell 300 short of the target as of the end of Friday. Kyodo News reports that JAL has threatened to fire some employees if it fails to reach the target, indicating the criteria for employees to be dismissed. But the labor union has called for extending the offer and revising the details, the sources said, according to Kyodo News. The 1,500 job cuts are part of the JAL group's plan to cut about 16,000 jobs in the current fiscal year to March 2011. The group has secured about half the figure through early retirement programs and other measures. AntiTrust Immunity Granted Meanwhile, Bloomberg News reports that Japan on Friday granted antitrust immunity for Japan Airlines Corp. and All Nippon Airways Co. to cooperate with partners on U.S. flights, clearing the way for deals that may cut costs and boost sales. According to Bloomberg, the transport ministry said JAL won approval for its alliance with AMR Corp.'s American Airlines, and ANA for its partnership with United Continental Holdings Inc.'s United and Continental units. Bloomberg relates the U.S. and Japan were set to sign their Open Skies accord Monday, which will end limits on how many carriers can fly between the two countries and what prices they can charge. The U.S. gave preliminary antitrust approval earlier this month, subject to the agreement being signed, the report adds. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-based company mainly engaged in the provision of air transport services. The Company is active in five business segments through its 203 subsidiaries and 83 associated companies. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. Japan Airlines Corporation, Japan Airlines International Co., Ltd. and JAL Capital Co., Ltd., on January 19, 2010, filed the petitions to commenced corporate reorganization proceedings with the Tokyo District Court. The Court appointed the Enterprise Turnaround Initiative Corporation of Japan and Eiji Katayama, Esq., as reorganization trustees. Japan Airlines Corp. filed for reorganization January 19, 2010, in the Tokyo District Court and filed a Chapter 15 petition in New York (Bankr. S.D.N.Y. Case No. 10-10198). The Company estimated debts at $28 billion. Bankruptcy Creditors' Service, Inc., publishes Japan Airlines Bankruptcy News. The newsletter tracks the Chapter 15 proceedings and the bankruptcy proceedings in Tokyo undertaken by Japan Airlines Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ==================== N E W Z E A L A N D ==================== CRAFAR FARMS: Stock Court Case Nearing End ------------------------------------------ William Mace at BusinessDay reports that a High Court case to decide who owns 4000 heifers stationed on Crafar Farms land when the company went into receivership last year came to its final day of witness testimony on October 22, 2010. According to the report, Crafar Farms sold the cattle to agri- finance company Stock Co in August 2008 for NZ$3.6 million. BusinessDay relates that Stock Co then leased the cattle back to Nugen Farms, a company owned by Allan Crafar's son Robert, but not within the Crafar Farms group. Money from the sale was used to purchase further land for Nugen Farms, the report notes. The receiver Korda Mentha's case hinges on the argument that the sale and lease-back was outside the ordinary course of business for Crafar Farms and therefore the cattle should remain part of the group's assets which are currently on the market, BusinessDay reports. Continuing his testimony at the hearing, BusinessDay relates, Allan Crafar said the sale and lease-back of the heifers was business as usual because it involved selling "trading stock" and served the family's stated aims. The report relates that Mr. Crafar said the sale put stock and land into his son's name as part of a succession plan, it reduced the amount of stock owned as part of his strategy to concentrate on purchasing property, and it was also a good deal the likes of which he never turned down. However, BusinessDay relates, KordaMentha's lawyer Bruce Stewart QC said the stock was originally supposed to be leased-back to the farm from which it had been bought -- one of the Crafar Farms companies called Plateau. The deal was restructured through Nugen Farms at the last moment to avoid having to gain consent from the banks -- a consent required by Stock Co, Mr. Stewart added, the report notes. The banks, BusinessDay notes, had previously approved stock sales on the condition that the proceeds were used to pay down bank debt. The report relates that they had also made clear their view that Crafar Farms should consolidate and that no further funding would be provided for land purchases. Mr. Stewart said that Mr. Crafar had intentionally not informed the banks about either the stock sale or the land purchase because it would be contrary to the terms of the General Security Agreement, or the funds raised would also be used to pay debt, BusinessDay reports. The report adds that Mr. Crafar said he did not consider gaining consent from the banks because the stock sales were in the ordinary course of his business and the land purchase was made to benefit his son and was not part of the Crafar Farms group over which the banks held security. The hearing is set down for further legal submissions in early November, BusinessDay notes. About Crafar Farms Crafar Farms, New Zealand's largest family owned dairy business, runs about 20,000 milking cows, and carries about 10,000 of other stock. The company employs 200 staff. Crafar Farms was placed in receivership by its lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson Finance. The banks are owed around NZ$200 million and put KordaMentha partners Michael Stiassny and Brendon Gibson in as receivers after Crafar Farms breached covenants on its loans. The New Zealand Herald said CraFarms' banks have been working with the Ministry of Agriculture and Forestry, Federated Farmers and Fonterra to ease the Crafars out of their business. This follows multiple convictions for environmental lapses and animal neglect in recent years and the revelation on September 28, 2009, from interest.co.nz of animal neglect on one of its large farms in the King Country near Benneydale. =============== X X X X X X X X =============== * BOND PRICING: For the Week October 18 to October 22, 2010 ----------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- ADVANCED ENERGY 9.50 01/04/2015 AUD 1.07 AINSWORTH GAME 8.00 12/31/2011 AUD 1.04 AMITY OIL LTD 10.00 10/31/2013 AUD 1.90 AMP GROUP FINANC 9.80 04/01/2019 NZD 1.00 BECTON PROP GR 9.50 06/30/2010 AUD 0.24 CBD ENERGY LTD 12.50 01/29/2011 AUD 0.11 EXPORT FIN & INS 0.50 12/16/2019 AUD 62.86 EXPORT FIN & INS 0.50 06/15/2020 AUD 61.02 EXPORT FIN & INS 0.50 06/15/2020 AUD 61.40 FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.45 GRIFFIN COAL MIN 9.50 12/01/2016 USD 60.75 HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.82 MINERALS CORP 10.50 09/30/2011 AUD 0.25 NEW S WALES TREA 1.00 09/02/2019 AUD 67.67 NEW S WALES TREA 0.50 09/14/2022 AUD 54.24 NEW S WALES TREA 0.50 10/07/2022 AUD 54.07 NEW S WALES TREA 0.50 10/28/2022 AUD 55.86 PRAECO P/L 7.13 07/28/2020 AUD 73.49 RESOLUTE MINING 12.00 12/31/2012 AUD 1.25 SUN RESOURCES NL 12.00 06/30/2011 AUD 0.45 TREAS CORP VICT 0.50 08/25/2022 AUD 54.47 CHINA ----- CHINA GOV'T BOND 1.64 12/15/2033 CNY 59.18 SHANGHAI WAIGAOQ 4.20 09/04/2014 CNY 54.39 HONG KONG --------- RESPARCS FUNDING 8.00 12/29/2049 USD 47.25 INDIA ----- L&T FINANCE LTD 8.40 03/08/2013 INR 8.15 PUNJAB INFRA DB 0.40 10/15/2024 INR 26.10 PUNJAB INFRA DB 0.40 10/15/2025 INR 23.92 PUNJAB INFRA DB 0.40 10/15/2026 INR 21.92 PUNJAB INFRA DB 0.40 10/15/2027 INR 20.12 PUNJAB INFRA DB 0.40 10/15/2028 INR 18.49 PUNJAB INFRA DB 0.40 10/15/2029 INR 17.02 PUNJAB INFRA DB 0.40 10/15/2030 INR 15.70 PUNJAB INFRA DB 0.40 10/15/2031 INR 14.51 PUNJAB INFRA DB 0.40 10/15/2032 INR 13.43 PUNJAB INFRA DB 0.40 10/15/2033 INR 12.40 PYRAMID SAIMIRA 1.75 07/04/2012 USD 12.43 INDONESIA --------- MOBILE-8 TELECOM 12.37 06/15/2017 IDR 70.00 JAPAN ----- AIFUL CORP 6.00 12/12/2011 JPY 70.50 AIFUL CORP 6.00 12/12/2011 JPY 70.50 AIFUL CORP 1.63 11/22/2012 JPY 64.08 AIFUL CORP 1.74 05/28/2013 JPY 64.69 AIFUL CORP 1.99 10/19/2015 JPY 43.91 COVALENT MATERIA 2.87 02/18/2013 JPY 74.06 CSK CORPORATION 0.25 09/30/2013 JPY 69.56 JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 62.30 JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 61.70 SHINSEI BANK 5.62 12/29/2049 GBP 74.03 TAKEFUJI CORP 9.20 04/15/2011 USD 18.00 MALAYSIA -------- ADVANCED SYNERY 2.00 01/26/2018 MYR 0.09 ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.46 CRESENDO CORP B 3.75 01/11/2016 MYR 0.95 DUTALAND BHD 6.00 04/11/2013 MYR 0.36 DUTALAND BHD 6.00 04/11/2013 MYR 0.75 EASTERN & ORIENT 8.00 07/25/2011 MYR 1.08 EASTERN & ORIENT 8.00 11/16/2019 MYR 1.15 KUMPULAN JETSON 5.00 11/27/2012 MYR 1.05 LION DIVERSIFIED 4.00 12/17/2013 MYR 1.08 MITHRIL BHD 3.00 04/05/2012 MYR 0.59 NAM FATT CORP 2.00 06/24/2011 MYR 0.05 OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.53 OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.27 OLYMPIA INDUSTRI 2.80 04/11/2013 MYR 0.19 PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.66 REDTONE INTL 2.75 03/04/2020 MYR 0.08 RUBBEREX CORP 4.00 08/14/2012 MYR 0.98 SCOMI ENGINEERING 4.00 03/19/2013 MYR 1.07 SCOMI GROUP 4.00 12/14/2012 MYR 0.10 TATT GIAP 2.00 06/06/2015 MYR 0.70 TRADEWINDS CORP 2.00 02/08/2012 MYR 0.90 TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.10 TRC SYNERGY 5.00 01/20/2012 MYR 1.50 WAH SEONG CORP 3.00 05/21/2012 MYR 2.50 WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.26 YTL CEMENT BHD 5.00 11/10/2015 MYR 2.15 NEW ZEALAND ----------- ALLIED FARMERS 9.60 11/15/2011 NZD 37.03 ALLIED NATIONWIDE 11.52 12/29/2049 NZD 28.00 CONTACT ENERGY 8.00 05/15/2014 NZD 1.06 DORCHESTER PACIF 5.00 06/30/2013 NZD 61.79 FLETCHER BUI 8.50 03/15/2015 NZD 8.10 FLETCHER BUI 7.55 03/15/2011 NZD 7.00 GMT BOND ISSUER 7.75 06/19/2015 NZD 0.08 INFRATIL LTD 8.50 09/15/2013 NZD 8.20 INFRATIL LTD 8.50 11/15/2015 NZD 8.00 INFRATIL LTD 10.18 12/29/2049 NZD 61.00 KIWI INCOME PROP 8.95 12/20/2014 NZD 1.31 MARAC FINANCE 10.50 07/15/2013 NZD 1.01 NZ FINANCE HLDGS 9.75 03/15/2011 NZD 57.41 SKY NETWORK TV 4.01 10/16/2016 NZD 5.81 SOUTH CANTERBURY 10.50 06/15/2011 NZD 1.00 SOUTH CANTERBURY 10.43 12/15/2012 NZD 0.67 ST LAURENCE PROP 9.25 07/15/2010 NZD 54.89 TOWER CAPITAL 8.50 04/15/2014 NZD 1.03 TRUSTPOWER LTD 8.50 09/15/2012 NZD 7.05 TRUSTPOWER LTD 8.50 03/15/2014 NZD 7.25 TRUSTPOWER LTD 7.60 12/15/2014 NZD 1.03 TRUSTPOWER LTD 8.60 12/15/2016 NZD 1.05 UNI OF CANTERBUR 7.25 12/15/2019 NZD 0.98 VECTOR LTD 8.00 06/15/2012 NZD 6.75 VECTOR LTD 8.00 10/15/2014 NZD 1.00 SINGAPORE --------- BLUE OCEAN 11.00 06/28/2012 NZD 29.00 DAVOMAS INTL FIN 5.50 12/08/2014 USD 64.51 NEXUS 1 PTE LTD 10.50 03/07/2014 USD 1.00 UNITED ENG LTD 1.00 03/03/2014 SGD 1.76 WBL CORPORATION 2.50 06/10/2014 SGD 1.85 SOUTH KOREA ----------- DAEWOO MTR SALES 6.55 03/17/2011 KRW 62.12 HOPE KOD 1ST 8.50 06/30/2012 KRW 30.47 HOPE KOD 2ND 15.00 08/21/2012 KRW 32.42 HOPE KOD 3RD 15.00 09/30/2012 KRW 30.34 HOPE KOD 4TH 15.00 12/29/2012 KRW 32.62 HOPE KOD 6TH 15.00 03/10/2013 KRW 37.80 IBK 2008/12 ABS 25.00 06/24/2011 KRW 64.26 IBK 2009/13 ABS 25.00 02/03/2012 KRW 67.14 IBK 2009/16 ABS 25.00 09/24/2012 KRW 60.64 IBK 2009/17 ABS 25.00 12/29/2012 KRW 57.37 KB 10TH SEC SPC 23.00 01/03/2011 KRW 62.53 KB 10TH SEC SPC 20.00 01/03/2011 KRW 42.18 KB 11TH SEC SPC 20.00 07/03/2011 KRW 63.91 KB 12TH SEC SPC 25.00 01/21/2012 KRW 57.84 KB 13RD SEC SPC 25.00 07/02/2012 KRW 59.38 KB 14TH SEC SPC 23.00 01/04/2013 KRW 57.35 KDB 5TH SEC SPC 15.00 12/13/2012 KRW 60.14 KDB 6TH SEC SPC 20.00 12/02/2019 KRW 53.21 KEB SEC 17TH SPC 20.00 12/28/2011 KRW 57.90 NACF-14 ABS SPS 25.00 01/15/2011 KRW 62.26 NACF-15 ABS SPS 25.00 03/18/2011 KRW 60.66 NACF-16 ABS SPS 15.00 01/03/2011 KRW 52.19 ONE KDB 1ST ABS 12.00 12/13/2010 KRW 72.89 ONE KDB 1ST ABS 7.60 06/13/2011 KRW 29.24 OSAN MYTOWN 1ST 5.64 04/16/2012 KRW 66.35 OSAN MYTOWN 2ND 5.64 04/16/2012 KRW 62.70 SAM HO INTL 6.32 03/28/2011 KRW 71.64 SHINHAN 2ND SEC 25.00 06/11/2010 KRW 29.50 SHINHAN 7TH SEC 20.00 12/14/2010 KRW 19.26 SINBO 2010 1ST 15.00 07/22/2013 KRW 30.49 SINBO 2ND ABS 15.00 08/26/2013 KRW 33.25 SINBO 3RD ABS 15.00 09/30/2013 KRW 31.35 SINBO 4TH ABS 15.00 09/30/2013 KRW 31.11 SINGOK ABS 7.50 06/18/2011 KRW 71.20 SINGOK NS ABS 7.50 06/27/2011 KRW 52.07 YOUNGNAM SAVINGS 8.50 12/18/2014 KRW 16.09 VIETNAM -------- VIETNAM MACHINE 9.20 06/06/2017 VND 74.61 VIETNAM SHIPBUIL 9.00 04/13/2017 VND 61.66 VIETNAM-PAR 4.00 03/12/2028 USD 74.00 VIETNAM SHIPBUIL 9.00 04/13/2017 VND 61.66 VIETNAM-PAR 4.00 03/12/2028 USD 74.00 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***