/raid1/www/Hosts/bankrupt/TCRAP_Public/101110.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, November 10, 2010, Vol. 13, No. 222
Headlines
A U S T R A L I A
ALLIED BRANDS: Creditors to Vote on Proposed DOCA on December 1
CIRA INT'L: Receivers Put Surfers Paradise Site Back to Market
C H I N A
CHINA HEALTH: Kenneth Lee Resigns as Chief Executive Officer
SEARCHMEDIA HOLDINGS: Posts $22.6 Million Net Loss in 2009
H O N G K O N G
ATHENA JEWELLERY: Court to Hear Wind-Up Petition on December 8
BEAUTY YOGA: Court to Hear Wind-Up Petition on December 8
BEST FOOD: Court Enters Wind-Up Order
BLUE WALL: Court Enters Wind-Up Order
BUN EXTRUSION: Court Enters Wind-Up Order
CHEUNG FUNG: Court Enters Wind-Up Order
CHINA PACKAGING: Court Enters Wind-Up Order
DAVINA INDUSTRIAL: Court Enters Wind-Up Order
D & G CATERING: Court Enters Wind-Up Order
EASTEAM PRINTING: Court to Hear Wind-Up Petition on November 10
ELASTIQUE INDUSTRIAL: Court Enters Wind-Up Order
FABRIC FOCUS: Court Enters Wind-Up Order
FAST FORWARD: Court Enters Wind-Up Order
FEALTY COMPANY: Pui and Cheung Appointed as Liquidators
FUTURE PERFECT: Court Enters Wind-Up Order
GLOBAL WEALTH: Court Enters Wind-Up Order
GOLDMART LEATHER: Creditors' Proofs of Debt Due November 29
GOWIN TECHNOLOGY: Court Enters Wind-Up Order
GRANDNEWS INTERNATIONAL: Court Enters Wind-Up Order
HANG FUNG: Creditors' Proofs of Debt Due November 19
I N D I A
BHAGAT AROMATICS: CRISIL Cuts Rating on INR8.6MM LT Loan to 'C'
JUHI ALLOYS: ICRA Cuts Rating on INR11cr FB Limits to 'LBB+'
L N METALLICS: CRISIL Puts 'BB-' Rating on INR76.4MM Cash Credit
SRI LAKSHMI: ICRA Puts 'LBB-' Rating on INR22.3cr Fund Based Loan
VIJAYALAKSHMI SPINTEX: ICRA Puts 'LBB-' Ratings on Various Loans
VIJAYNEHA POLYMERS: ICRA Assigns 'LBB+' Rating to INR16.37cr Loan
J A P A N
CHELSEA TRUST: Moody's Reviews Ratings on Various Certificates
JAPAN AIRLINES: May Not Achieve Job Cut Target Again
JAPAN FINANCE: Moody's Upgrades Ratings on Four SME CLOs
JLOC38 LLC: Fitch Takes Rating Actions on Various Classes
JLOC41 LLC: S&P Downgrades Rating on Class D-1 Notes to 'CC'
K O R E A
KYONGNAM BANK: Moody's Assigns 'D+' Bank Financial Strength Rating
N E W Z E A L A N D
BLACK ROBIN: Receivers Call for Expressions of Interest in Assets
FROZEN DIRECT: Operations Continue Under New Owners
HUBSTA: Receivers Appointed; Biz Continues to Trade
JEAN JONES: Sale Expected Soon
NATHANS FINANCE: Directors Drop Fight Against Directorship Ban
S I N G A P O R E
ENVIRONMENT MANAGEMENT: Creditors' Proofs of Debt Due November 22
MUVICOM PTE: Court Enters Wind-Up Order
PROSPERITY INTERNATIONAL: Court Enters Wind-Up Order
SELECT CAFE: Court to Hear Wind-Up Petition on November 19
X X X X X X X X
* Moody's: Global Default Rate Falls to 3.7% in October
* S&P's 2010 Global Corporate Defaults Tally Now at 73
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A U S T R A L I A
=================
ALLIED BRANDS: Creditors to Vote on Proposed DOCA on December 1
---------------------------------------------------------------
Allied Brands Ltd. could yet resume trading on the Australian
Securities Exchange if creditors agree to a proposed deed of
company arrangement next month, Nick Nichols at goldcoast.com.au
reports.
According to goldcoast.com.au, Allied Brands' creditors met for
the first time in Brisbane on November 8, 2010, in a low-key
affair. Although it drew fewer than a dozen attendees,
goldcoast.com.au relates, administrator Peter Dinoris, of Vincents
Chartered Accountants, said "a lot of creditors were represented".
Mr. Dinoris, goldcoast.com.au notes, said a report to creditors is
expected to be released on November 23, along with a proposed deed
of company arrangement.
The DOCA would be put to a vote on December 1 and, if approved,
Mr. Dinoris said there was a "prospect of Allied Brands
relisting," goldcoast.com.au adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 28, 2010, SmartCompany said Allied Brands Ltd. was placed in
voluntary administration on October 27, 2010. Peter Dinoris and
Peter Biazos of Vincents Chartered Accountants have been appointed
as joint administrators, although chief executive Sean Corbin said
not all of the company's subsidiaries have been placed in
administration at this stage. Allied Brands, which saw its Cookie
Man chain placed in liquidation in September and then last month
lost the Australian franchise rights to the Baskin-Robbins brand,
has only a few remaining brands: Villa & Hut, which founder Franz
Madlener is trying to buy back; Kenny's Cardiology, which is also
close to being sold; and Awesome Water, which is still operating.
Allied's major lender, Westpac, also last month appointed
receivers and managers from McGrath Nicol to two Allied Brands
subsidiaries -- Allied Brands Service and Allied Brands Finance.
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.
CIRA INT'L: Receivers Put Surfers Paradise Site Back to Market
--------------------------------------------------------------
Nick Nichols at goldcoast.com.au reports that the receivers to
former City Pacific and Raptis Group joint-venture Cira
International have taken a prime Surfers Paradise development site
back to the market after a Korean buyer failed to settle on the
original AU$33 million deal.
According to goldcoast.com.au, the move comes just weeks after
City Plan Partners, the Korean developer undertaking the Victoria
Tower at Southport, was said to be progressing plans for a twin-
tower project on the site.
The resale attempt, goldcoast.com.au relates, is seen as a major
power play between City Plan Partners head Carl Lee and Cira
receiver John Greig, of Deloitte, who is understood to have been
frustrated by repeated requests to extend settlement of the
AU$33 million contract signed early last year.
The deal was originally earmarked to settle in December last year
and the most recent extension for the 1.14ha site just north of
the Gold Coast International was set for June this year,
goldcoast.com.au notes.
The Korean developer, according to goldcoast.com.au, is understood
to still be keen on buying the massive city block which, along
with the Gold Coast International site, was once earmarked by City
Pacific offshoot CP1 and Raptis Group for a four-tower
redevelopment.
Mr. Greig has sought offers to purchase the site in a national
campaign, closing on December 8, goldcoast.com.au says.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 26, 2008, Raptis Group Limited said that Lend Lease Limited
appointed John Greig and Nicholas Harwood of Deloitte as joint and
several receivers in respect of a parcel of land owned by Cira
International Pty Ltd, an equity accounted associate company of
Raptis comprising a joint venture with CP1 Limited.
=========
C H I N A
=========
CHINA HEALTH: Kenneth Lee Resigns as Chief Executive Officer
------------------------------------------------------------
China Health Care said on October 29, 2010, Dr. Kenneth K. Lee
resigned as its Chief Executive Officer. As a result of Mr. Lee's
resignation on October 29, 2010, the Company appointed Faith Lam
as its Acting Chief Executive Officer. Before the new
appointment, Mr. Lam was the Company's Director, Vice President
and Acting Chief Financial Officer.
Doctor Xiu-Sheng Cheng resigned as the Executive Chairman of the
Company effective immediately.
The Company's board of directors consists of Mr. Gerald Lau and
Mr. Faith Lam.
Going Concern Doubt
Samuel H. Wong & Co., LLP, in South San Francisco, California,
raised substantial doubt about China Health's ability to continue
as a going concern after auditing the Company's financial results
for the years ended September 30, 2008, and 2007. The auditor
noted that the Company continued to incur losses and working
capital deficiencies.
China Health Care's balance sheet at June 30, 2009, showed
total assets of US$1.47 million and total liabilities of
US$7.06 million, resulting in a stockholders' deficit of about
US$5.59 million.
China Health Care Corp. provides consultancy services to the VIP
Maternity & Gynecological Centers in the People's Republic of
China. These services are provided in conjunction with Johns
Hopkins International, LLC, a U.S. based healthcare provider, and
based upon a Consultancy Agreement with JHI. The Company is
currently under contracts to provide consultancy services to a
total of five VIP Birthing Centers in the PRC and to manage a
private hospital in Macau.
SEARCHMEDIA HOLDINGS: Posts $22.6 Million Net Loss in 2009
----------------------------------------------------------
SearchMedia Holdings Limited filed on November 1, 2010, its annual
report on Form 10-K, reporting a net loss of $22.6 million on
$37.7 million of revenue for the fiscal year ended December 31,
2009, compared to a net loss of $35.1 million on $41.7 million of
revenue for fiscal 2008.
The Company's balance sheet at December 31, 2009, showed
$99.8 million in total assets, $51.4 million in total liabilities,
and stockholders equity of $48.4 million.
For the year ended December 31, 2009, and 2008, the Company's cash
flows used in operating activities were $8.8 million and $1.5
million, respectively.
The Company discloses that its inability to generate cash flows to
meet its obligations due to the uncertainty of achieving operating
profitability on an annual basis and raising required proceeds on
reasonable terms, among other factors, raises substantial doubt as
to the Company's ability to continue as a going concern.
A full-text copy of the Form 10-K is available for free at:
http://researcharchives.com/t/s?6d58
About SearchMedia Holdings
Based in Shanghai, China, SearchMedia Holdings Limited (NYSE Amex:
IDI, IDI.WS) is a multi-platform media company operating primarily
in the out-of-home advertising industry and one of the largest
operators of integrated outdoor billboard and in-elevator
advertising networks in China. SearchMedia operates a network of
over 1,500 high-impact billboards with over 500,000 square feet of
surface display area and one of China's largest networks of in-
elevator advertisement panels consisting of approximately 125,000
frames in 50 cities throughout China. Additionally, SearchMedia
operates a network of large-format light boxes in concourses of
eleven major subway lines in Shanghai. SearchMedia's core outdoor
billboard and in-elevator platforms are complemented by its subway
advertising platform, which together enable it to provide a multi-
platform, "one-stop shop" services for its local, national and
international advertising clients.
================
H O N G K O N G
================
ATHENA JEWELLERY: Court to Hear Wind-Up Petition on December 8
--------------------------------------------------------------
A petition to wind up the operations of Athena Jewellery Limited
will be heard before the High Court of Hong Kong on December 8,
2010, at 9:30 a.m.
Luk Lai Kwan filed the petition against the company.
The Petitioner's solicitors are:
Yuen & Partners
10th Floor, Chiyu Bank Building
78 Des Voeux Road
Central, Hong Kong
BEAUTY YOGA: Court to Hear Wind-Up Petition on December 8
---------------------------------------------------------
A petition to wind up the operations of Beauty Yoga Limited will
be heard before the High Court of Hong Kong on December 8, 2010,
at 9:30 a.m.
Fok Ming Yu filed the petition against the company.
BEST FOOD: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on October 27, 2010,
to wind up the operations of Best Food Management Limited.
The official receiver is E T O'Connell.
BLUE WALL: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on September 17,
2009, to wind up the operations of Blue Wall Finance Limited.
The company's liquidator is Chiu Koon Shou.
BUN EXTRUSION: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on March 4, 2010, to
wind up the operations of Bun Extrusion MFY Limited.
The company's liquidator is Chiu Koon Shou.
CHEUNG FUNG: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on March 12, 2010, to
wind up the operations of Cheung Fung Decoration Company Limited.
The company's liquidator is Chiu Koon Shou.
CHINA PACKAGING: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on March 26, 2010, to
wind up the operations of China Packaging Equipment (H.K.) Company
Limited.
The company's liquidator is Chiu Koon Shou.
DAVINA INDUSTRIAL: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Hong Kong entered an order on October 27, 2010,
to wind up the operations of Davina Industrial Company Limited.
The official receiver is E T O'Connell.
D & G CATERING: Court Enters Wind-Up Order
------------------------------------------
The High Court of Hong Kong entered an order on February 1, 2010,
to wind up the operations of D & G Catering Services Limited.
The company's liquidator is Chiu Koon Shou.
EASTEAM PRINTING: Court to Hear Wind-Up Petition on November 10
---------------------------------------------------------------
A petition to wind up the operations of Easteam Printing Company
Limited will be heard before the High Court of Hong Kong on
November 10, 2010, at 9:30 a.m.
Chung Wing Fu filed the petition against the company.
The Petitioner's solicitors are:
Cheung & Liu
6th Floor, Guangdong Investment Tower
148 Connaught Road
Central, Sheung Wan
Hong Kong
ELASTIQUE INDUSTRIAL: Court Enters Wind-Up Order
------------------------------------------------
The High Court of Hong Kong entered an order on December 23, 2009,
to wind up the operations of Elastique Industrial Limited.
The company's liquidator is Chiu Koon Shou.
FABRIC FOCUS: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order on March 11, 2010, to
wind up the operations of Fabric Focus (Textile) Limited.
The company's liquidator is Chiu Koon Shou.
FAST FORWARD: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order on November 27, 2009,
to wind up the operations of Fast Forward Resources PLC.
The company's liquidator is Chiu Koon Shou.
FEALTY COMPANY: Pui and Cheung Appointed as Liquidators
-------------------------------------------------------
Pui Chiu Wing and Cheung Lai Kuen on July 14, 2010, were appointed
as liquidators of Fealty Company Limited.
The liquidators may be reached at:
Pui Chiu Wing
Cheung Lai Kuen
Room 10 16/F
Parklane Centre
25 Kin Wing Street
Tuen Mun, NT
FUTURE PERFECT: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on January 11, 2010,
to wind up the operations of Future Perfect Limited.
The company's liquidator is Chiu Koon Shou.
GLOBAL WEALTH: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on October 27, 2010,
to wind up the operations of Global Wealth Creation Limited.
The official receiver is E T O'Connell.
GOLDMART LEATHER: Creditors' Proofs of Debt Due November 29
-----------------------------------------------------------
Creditors of Goldmart Leather and Hide Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by November 29, 2010, to be included in the company's
dividend distribution.
The company's liquidator is:
Mat Ng
c/o John Lees Associates
20/F Henley Building
5 Queen's Road
Central, Hong Kong
GOWIN TECHNOLOGY: Court Enters Wind-Up Order
------------------------------------------
The High Court of Hong Kong entered an order on August 5, 2010, to
wind up the operations of Gowin Technology Enterprise Company
Limited.
The company's liquidator is Chiu Koon Shou.
GRANDNEWS INTERNATIONAL: Court Enters Wind-Up Order
---------------------------------------------------
The High Court of Hong Kong entered an order on October 27, 2010,
to wind up the operations of Grandnews International (Group)
Holdings Limited.
The official receiver is E T O'Connell.
HANG FUNG: Creditors' Proofs of Debt Due November 19
----------------------------------------------------
Hang Fung Jewellery Company Limited, which is in members'
voluntary liquidation, requires its creditors to file their proofs
of debt by November 19, 2010, to be included in the company's
dividend distribution.
The company's liquidators are:
Darach E. Haughey
Edmond Wah Bon ching
Yeung Lui Ming (Edmund)
35th Floor, One Pacific Place
88 Queensway
Hong Kong
=========
I N D I A
=========
BHAGAT AROMATICS: CRISIL Cuts Rating on INR8.6MM LT Loan to 'C'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Bhagat
Aromatics Ltd to 'C/P4' from 'BB/Stable/P4+'. The downgrade
reflects instances of delay by BAL in servicing its debt in the
recent past; the delays have been caused by BAL's weak liquidity.
Facilities Ratings
---------- -------
INR26.4 Million Cash Credit Limit C (Downgraded from
(Enhanced from INR 17.5 Million) BB/Stable)
INR8.6 Million Long Term Loan C (Downgraded from
(Reduced from 27.5 Million) BB/Stable)
INR60.0 Million Bills Discounting P4 (Downgraded from P4+)
INR52.5 Million Export Packing P4 (Downgraded from P4+)
Credit
INR30.0 Million Standby line of
credit (Enhanced from INR 20.0 Mil) P4 (Downgraded from P4+)
INR20.0 Million Letter of Credit P4 (Downgraded from P4+)
INR37.5 Million Bank Guarantee P4 (Downgraded from P4+)
The ratings also reflect the company's weak financial risk
profile, marked by moderate gearing and weak debt protection
metrics, moderate scale of operations and intense competition in
the menthol industry, and its vulnerability to fluctuations in the
value of the Indian rupee and raw material. These weaknesses are
partially offset by BAL's established customer relationships and
its diversified end-user industry base.
About Bhagat Aromatics
Incorporated in 1989, BAL manufactures menthol crystals,
peppermint oil, essential oils, and aromatic chemicals, which find
application in the pharmaceutical, food, tobacco, and cosmetic
industries. Around 80 per cent of the company's revenue is
contributed by exports. Its plant at Noida (Uttar Pradesh) has a
manufacturing capacity of 150 tonnes per month.
BAL reported a profit after tax (PAT) of INR0.8 million on net
sales of INR368 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR3.2 million on net sales
of INR433 million for 2008-09.
JUHI ALLOYS: ICRA Cuts Rating on INR11cr FB Limits to 'LBB+'
------------------------------------------------------------
ICRA has revised the rating assigned to the INR 11.0 crore fund
based limits of Juhi Alloys Limited from "LBBB-" to "LBB+". The
outlook on the rating is stable.
Amount
Facilities (INR crore) Ratings
---------- ---------- -------
Fund Based Limits 11.0 LBB+ (stable) Revised
The rating revision takes into account increase in JAL's working
capital intensity, which coupled with its lower turnover and
profits in FY2010 has resulted in high reliance on external
borrowing. Moreover, other group companies are facing liquidity
problems; considering the management and operational linkages, JAL
might extend support to them. The rating also takes into
consideration the inherent cyclicality in the steel business and
vulnerability of the company to adverse movements in raw material
prices due to lack of backward integration. The rating, however,
favorably factors in the experience of promoters in the steel
business; JAL's diversified customer base and moderate coverage
indicators.
About Juhi Alloys
Incorporated in 1992, Juhi Alloys Limited is a closely held
company promoted by Mr. Mukesh Agarwal and is into manufacturing
of Mild Steel (MS) and Stainless Steel (SS) bars, angles and
rounds. Its manufacturing facility at Hamirpur (Uttar Pradesh) has
capacity to produce 90,000 tonnes per annum (TPA) of MS/SS/TMT
bars/wire rods/rounds. The main product of JAL is thermo
mechanical treated (TMT) bar which finds applications in the
construction industry.
Mr. Mukesh Agarwal and his family, have more than two decades of
experience in the steel industry, and have also promoted two other
companies - Rimjhim Ispat Limited and Global Smelters Limited.
While RIL is an established player in the Stainless Steel segment,
GSL has only recently started commercial operation.
L N METALLICS: CRISIL Puts 'BB-' Rating on INR76.4MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of L N Metallics Ltd.
Facilities Ratings
---------- -------
INR76.4 Million Cash Credit BB-/Stable (Assigned)
INR41.4 Million Term Loan BB-/Stable (Assigned)
INR6 Million Bank Guarantee P4+ (Assigned)
INR5 Million Letter of Credit P4+ (Assigned)
The ratings reflect LNML's working-capital-intensive operations,
its marginal market share in the sponge iron business, and its
exposure to cyclicality in the steel industry. These weaknesses
are partially offset by LNML's moderate operating efficiencies, on
account of its geographically diversified revenue profile and coal
linkage with Mahanadi Coal Fields Ltd.
Outlook: Stable
CRISIL believes that LNML will maintain a stable business risk
profile over the medium term, supported by its operating
efficiency. The outlook may be revised to 'Positive' if LNML's
net worth improves substantially. Conversely, the outlook may be
revised to 'Negative' if LNML's operating margin declines because
of low capacity utilization, or if the company undertakes an
additional, large, debt-funded capital expenditure programme.
About L N Metallics
Set up by Mr. G L Agarwal and his family in 2003, LNML
manufactures sponge iron. The company's facility at Jharsuguda
(Orissa) has capacity to produce 60,000 tonnes of sponge iron per
annum.
LNML reported a profit after tax (PAT) of INR14 million on net
sales of INR428 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR17 million on net sales
of INR357 million for 2008-09.
SRI LAKSHMI: ICRA Puts 'LBB-' Rating on INR22.3cr Fund Based Loan
-----------------------------------------------------------------
ICRA has assigned a long term rating of "LBB-" to the INR 22.34
crore fund based limits of Sri Lakshmi Narsimha Spinning Mills
(India) Private Limited. In addition, ICRA has also assigned A4
ratings to the INR 0.86 crore short term loan and 0.85 crore non-
fund based limit of the company. The long term rating has been
assigned a stable outlook.
The ratings assigned by ICRA reflect SLNSML's lack of financial
flexibility characterized by a highly leveraged capital structure
and high working capital intensity, its small scale of operations,
limited product range and the fragmented nature of the spinning
industry which restrict SLNSML's pricing flexibility. The ratings,
however, draw comfort from the experience of the promoters in the
cotton trading and ginning business, proximity of SLNSML's
spinning unit to cotton growing areas of the Guntur district of
Andhra Pradesh (AP), its integrated operations through group
companies, mproved demand outlook for yarn and derived products
and the advantages of fiscal benefits such as interest and
power subsidy received by the company.
Incorporated in 2005, SLNSML is a cotton spinning mill based in
the Guntur district of AP It started commercial production in July
2008. The company has installed capacity of 15,600 spindles at
present and is engaged in production of 64s carded yarn, company
will also start manufacturing 48s count combed cotton yarn by
February 2011.
SLNSML enjoys a subsidy of 5% on the interest paid on the term
loan availed for the expansion project under the Technology Up
gradation Funds Scheme (TUFS). SLNSML's turnover grew by 124% on
a small base of INR 6.41 crore in FY2009 to around INR 14.36 crore
in FY2010. The growth was driven by capacity addition and
streamlining of operations in the new unit. Company has been
producing and selling 64s carded cotton yarn in the domestic
market through a network of yarn traders situated in Bhiwandi
(Maharashtra) and Coimbtore (Tamil Nadu).
SLNSML procures cotton from local market through selling agents,
Cotton Corporation of India (CCI), and its group companies.
Logistic cost for raw material procurement for the company is low
because of its proximity to cotton growing areas. Also, as
spinning mills in Guntur have access to concessional power from
the AP state government; this has led to better operational
efficiency as compared to mills located in other states. The
positives, however, are partly offset by the frequent power cuts
in the state which have adversely impacted production of spinning
mills located in this region.
The cotton yarn market is highly fragmented in nature.
Competition from low-cost countries and any slackness in global
demand restrict the ability of the companies to pass on any hike
in input costs to its customers. However, the operating
environment of spinning mills has seen some improvement since
H2FY2010 due to a recovery in demand which has led to higher yarn
realizations.
Significant debt funded capacity building coupled with the high
working capital intensity of SLNSML's operations and negative
retained earnings in past have led to a highly leveraged capital
structure as characterized by a very high gearing of 7.64 times as
on March 31, 2010. Going forward, the gearing is expected to
improve marginally owing to positive retained earnings and equity
infusion by the promoters for capacity expansion. However, any
further debt funded capital expenditure could have an adverse
impact on the firm's capital structure, and that will be a key
rating sensitivity.
As per the results of FY10, the operating income of SLNSML more
than doubled to INR 14.36 crore in 2009-10 from 6.41 crore in
2008-09 on account of increase in spun yarn production and
improvement in yarn realizations. The improvement in operating
profitability from 27.99% in 2008-09 to 37.71% in 2009-10 was due
to pickup in the demand of yarn which resulted in higher increase
in realizations compared to the increase in the raw material
prices of cotton. The Company was able to record a positive net
profit of INR.89 lakhs in 2009-10 after incurring a net loss
INR1.44 cr in 2008-09, which was first year of unit's commercial
operations.
The Company recorded OPBITDA of INR5.41 crore in FY10 as against
INR1.79 crore in FY09; the net profitability improved to 0.06% in
2009-10 from a net loss in 2008-09. It has to be noted that
company's net profit in 2009-10 came down mainly due to business
depreciation loss of INR 2.04 crore which was carried forward from
previous years. The debt coverage indicators such as
OPBDITA/Interest, NCA/Total Debt and DSCR also improved in
2009-10. The working capital intensity of SLNSML is high at 51%
as on March 31, 2010, as company tries to procure cotton lint
during October-March for entire year of production.
About Sri Lakshmi
SLNSML is a Guntur (Andhra Pradesh) based yarn manufacturing
company. The Company commenced commercial production in July 2008
and has current installed capacity of 15,600 spindles. SLNSML
manufactures 64s carded cotton yarn and sells is to domestic
customers through network of traders. The company has plans to
start the production of 40s combed yarn by February 2011.
Recent Results
As per the provisional numbers, SLNSML has recorded revenue of
INR8.63 crore from yarn sales in the period of April-2010 to
Septmber-2010.
VIJAYALAKSHMI SPINTEX: ICRA Puts 'LBB-' Ratings on Various Loans
----------------------------------------------------------------
ICRA has assigned "LBB-" rating to fund-based and non fund-based
bank facilities of INR14.94 crore for Vijayalakshmi Spintex
Limited. The outlook on the long term rating is stable
The rating is constrained by the stagnant growth and low
profitability for the company. Moreover the fragmented nature
of industry, commoditized nature of product and the company's
moderate scale of operations limits its pricing power.
Amount
Facilities (INR crore) Ratings
---------- ---------- -------
Fund Based Limits 9.00 LBB-/Stable
Term Loan 5.69 LBB-/Stable
Non Fund Based Limits 0.25 LBB-/Stable
The assigned rating further takes into account moderate gearing
levels and marginal coverage indicators for the company and
relatively high working capital intensity brought about by high
inventory levels due to seasonal nature of cotton availability.
The rating however favorably factors in long track record of
operations for the company and its ntegrated operations having its
own ginning units and auto-coners and combers along with 19152
spindles for cotton yarn spinning.
VSL is engaged in manufacturing of cotton yarn in the counts
ranging from 20s to 60s. The spinning unit is located at
Nalgonda District in Andhra Pradesh; it had set up its initial
project of 12096 spindles. Over the years, VSL has
ncreased its capacities in a phased manner to reach 19152 spindles
at present. The company also has auto-coners, auto-combers and
its own ginning facilities. The raw materials & consumables are
procured from neighbouring districts of Andhra Pradesh viz.,
Warangal, Adilabad etc. and also from Gujarat and Maharashtra.
Finished goods are primarily sold through a network of
distributors and dealers. The Company has over a period of time
developed its marketing network and it presently markets its
products through broker net work to the weaving mills engaged in
export oriented activities.
VIJAYNEHA POLYMERS: ICRA Assigns 'LBB+' Rating to INR16.37cr Loan
-----------------------------------------------------------------
ICRA has assigned "LBB+" ratings to the INR 16.37 crore fund based
limits and INR 6.00 crore non-fund based limits of Vijayneha
Polymers Private Limited. The outlook on the rating is stable.
The ratings assigned by ICRA reflect VPPL's financial flexibility
constrained by high gearing and the fragmented nature
of the plastic packaging industry due to presence of a large
number of small and medium scale players which restrict
VPPL's pricing flexibility. The ratings, however, draw comfort
from the experience of the promoters in the plastic
manufacturing and trading business, synergies achieved through
coverage of a considerable part of flexible packaging
product value chain, its appointment as IOCL's polymer
distribution agent in Andhra Pradesh, and favourable demand
outlook for plastic packaging products.
Incorporated in 2003, VPPL is a plastic packaging product
manufacturer based in Hyderabad, Andhra Pradesh. Promoted by
Mr. Shiv Kumar Gupta; VPPL started its operations by manufacturing
poly bags by monolayer extrusion process. The company later
introduced multilayer extrusion films and laminated pouches into
its product portfolio.
VPPL now has an installed extrusion capacity of 11900 MTPA of
which 3112 MTPA is multilayer extrusion and 1200 MTPA is
lamination capacity. Apart from this the company avails job
working facilities for smaller lines for up to 3000
MTPA. Two Such Job working units i.e. Chandra Plastic Industries
and Neha poly pack are the proprietary concerns of the directors
and work exclusively for the company. VPPL operates in 13470 sq
yards Land at Mailardev pally near Hyderabad.
Carry bags sales have contributed around 60% of the company's
revenues in 2009-10. VPPL also has manufacturing
capability to produce two and three layer films. The company
caters to the packaging requirements of grocery stores
(kirana poly-bags), FMCG industry, Pharmaceutical Industry, Food
and Edible Oil industry. VPPL's printing and lamination divisions
are capable of serving to both primary and secondary packaging
requirements of the customers. The Company also has a recycling
division for recycling the plastic waste generated during
manufacturing process. With the help of god-own-cum-shop in
Bangalore, retail outlets in Hyderabad and a wide network of
whole-sale stockists, company's distribution channel covers entire
south India and some part of Orissa and Maharashtra. VPPL has
many reputed names like ITC, Reliance retail, and TATA Tea as its
regular customers.
High Density Poly Ethylene, Low Linear Density Poly Ethylene and
Poly Propylene are company's primary raw materials. VPPL procures
most of its raw material requirement from a number of polymer
producers in India and abroad. Around 73% of the raw material
requirement was fulfilled from imports in
2009-10.
VPPL has recently been appointed as Del Credere Associate cum
Consignment Stockist (DCA cum CS agent) of IOCL in Andhra Pradesh
for distribution of IOCL's polymer products. VPPL will be
responsible for selling and marketing the goods on behalf of IOCL,
placing the customer's order with IOCL and coordinating the sale,
dispatch and transportation of the material. VPPL would earn a
fixed commission (ranging from INR350-450/tonne), besides which
its source of earnings are the interest income charged from
customers due to credit period offered. The demand growth
prospects for polymers remain favorable in key user segments such
as woven sacks, irrigation-water supply pipes, telecom ducts.
With an operating income of INR 120.02 crore in 2009-10, VPPL is a
moderate sized player in flexible packaging industry with primary
focus in South Indian market. The company's Operating Income has
grown with a CAGR of about 31% during the last four years as the
company gradually added capacity for monolayer and multilayer
films along with printing and lamination. VPPL's operating income
at INR 120.02 crore in 2009-10 registered a growth of over 60%
over the previous year; growth in OI was led by improved capacity
utilization for all product lines and revenue of INR 33.23
crore through Poly-Ethene granules trading. The operating profit
margin dipped by 37 bps in 2009-10 largely due to considerable
revenue contribution from low margin polymer trading and
management's focus on sales volume. The return indicators
improved as ROCE increased to 20.48% in FY10 from 19.10% in FY09.
The company has a fairly leveraged capital structure as evident by
a relatively high gearing of 2.04 as on March 31, 2010. The debt
coverage indicators such as NCA/Total Debt and DSCR improved in
2009-10, however OPBITDA/Interest deteriorated to 3.03 times in
FY10 from 3.24 times in FY09 due to high interest cost. The
working capital intensity of VPPL is moderate and has been
fluctuating in the range of 11%-22% in last five years.
Going forward, VPPL's ability to maintain capacity utilization in
existing units and streamlining of operations in new unit, to pass
on raw material price fluctuations, and to finance future capacity
expansions through internal accruals will be key rating
sensitivities.
About Vijayneha Polymers
VPPL, promoted by Mr. Shiv Kumar Gupta in 2003, is engaged in
producing plastic packaging products. Based in Hyderabad (Andhra
Pradesh), the company has an installed extrusion capacity of 11900
MTPA of which 3112 MTPA is multilayer extrusion and 1200 MTPA is
for lamination. Apart from this the company avails job working
facilities of up to 3000 MTPA from its group companies.
Recent Results
As per provisional accounts, for six months ended September 30,
2010, the company reported an operating income of INR 70.72 crore
and a PBT of INR 3.21 crore. The operating profit margin at 6.53%
has seen a 58 bps improvement compared to FY10.
=========
J A P A N
=========
CHELSEA TRUST: Moody's Reviews Ratings on Various Certificates
--------------------------------------------------------------
Moody's Japan K.K. has placed Chelsea Trust's Class C through G
trust certificates and asset specified loan under review for
possible downgrade.
Details follow:
-- Deal Name: Chelsea Trust Certificates and Chelsea Asset
Specified Loan
-- Class C, A2 (sf) placed under review for possible downgrade;
previously on November 15, 2006 definitive rating assigned A2
(sf)
-- Class F, Ba3 (sf) placed under review for possible downgrade;
previously on November 15, 2006 definitive rating assigned
Ba3 (sf)
-- Class G, Ba3 (sf) placed under review for possible downgrade;
previously on November 15, 2006 definitive rating assigned
Ba3 (sf)
-- Specified loan, B3 (sf) placed under review for possible
downgrade; previously on November 15, 2006 definitive rating
assigned B3 (sf)
The Chelsea trust certificates and specified loan, effected in
November 2006, represent the securitization of a high-rise office
building in Chuo-ku, Osaka. Tenant concentration is high;
approximately 65% of the total rentable area was occupied by a
single tenant. In October 2010, the tenant issued a press release
(on its website) that it planned to vacate the building in 2013.
Moody's considers it highly likely that the property's
profitability will fall below its initial assumptions. Moody's
will thus re-assess its estimates for rents, net cash flow, and
property value.
JAPAN AIRLINES: May Not Achieve Job Cut Target Again
----------------------------------------------------
Japan Airlines Corp. will likely fail to clear a targeted
workforce cut through a voluntary retirement program again,
raising the possibility of having to lay off some pilots and cabin
attendants, Kyodo News reports citing sources familiar with the
matter.
Kyodo News relates one of the sources said the number of
applications to the program is still "far short" of a targeted
270.
Kyodo News relates, on October 26, JAL began to solicit some 270
voluntary retirement applications from pilots and cabin attendants
until Tuesday as it failed to achieve 1,500 job cuts under the
previous program implemented between September 3 and October 22.
According to Kyodo News, JAL is now under court-administered
rehabilitation plans to cut a total of 16,000 jobs from the JAL-
led group of companies by March 2011. While the 1,500 jobs
subject to the previous voluntary retirement program included some
370 pilots and 610 cabin attendants, only 240 pilots and 470 cabin
attendants applied for it.
Kyodo News states that JAL considers it imperative to carry out
the plans as it otherwise would be unable to secure badly needed
new loans from creditor banks.
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)
JAPAN FINANCE: Moody's Upgrades Ratings on Four SME CLOs
--------------------------------------------------------
Moody's Japan K.K. has upgraded the ratings on four Japan SME CLOs
by the Japan Finance Corporation (formerly, Japan Finance
Corporation for Small and Medium Enterprise).
The complete rating actions are:
* CLO in September 2006 of Regional Financial Institutions
-- JPY 250,000,000 Mezzanine Trust Certificates, upgraded to Aaa
(sf);
-- Previously on August 4, 2010, upgraded to Aa3 (sf) from Baa1
(sf)
* CLO in September 2007 of Regional Financial Institutions
-- JPY 400,000,000 Mezzanine Trust Certificates, upgraded to Aa3
(sf);
-- Previously on April 30, 2009, downgraded to A3 (sf) from A2
(sf)
* CLO in December 2007 of Regional Financial Institutions
-- JPY 340,000,000 Mezzanine Trust Certificates, upgraded to Aa1
(sf);
-- Previously on February 5, 2010, upgraded to Aa3 (sf) from A2
(sf)
* March 2008 Regional Financial Institutions CLO
-- JPY8,400,000,000 Senior Trust Certificates, upgraded to Aa1
(sf);
-- Previously on April 30, 2009, downgraded to Aa3 (sf) from Aaa
(sf)
-- JPY460,000,000 Mezzanine Trust Certificates, upgraded to Baa2
(sf);
-- Previously on April 30, 2009, downgraded to Ba3 (sf) from A2
(sf)
Deal Name: CLO in September 2006 of Regional Financial
Institutions
* Issue Amount: JPY 250,000,000 Mezzanine Trust Certificates
* Dividend: Fixed
* Closing Date: September 27, 2006
* Final Maturity Date: October 15, 2012
* Underlying Asset: SME loans
* Trustor: Japan Finance Corporation (Aa2)
* Originator/Initial Servicer: The Kanagawa Bank, Ltd., The Ehime
Bank, Ltd., The Kumamoto Family Bank, Ltd., Fukui Shinkin Bank,
The Hekikai Shinkin Bank, Bisai Shinkin Bank, Nagahama Shinkin
Bank, Yonago Shinkin Bank and Japan Finance Corporation
* Arranger: Daiwa Securities Capital Markets Co. Ltd.
Deal Name: CLO in September 2007 of Regional Financial
Institutions
* Issue Amount: JPY 400,000,000 Mezzanine Trust Certificates
* Dividend: Fixed
* Closing Date: September 26, 2007
* Final Maturity Date: October 15, 2013
* Underlying Asset: SME loans
* Trustor: Japan Finance Corporation (Aa2)
* Originator/Initial Servicer: Bizen Shinkin Bank, Japan Finance
Corporation
* Arranger: Nomura Securities Co., Ltd.
Deal Name: CLO in December 2007 of Regional Financial Institutions
* Issue Amount: JPY 340,000,000 Mezzanine Trust Certificates
* Dividend: Fixed
* Closing Date: December 26, 2007
* Final Maturity Date: January 15, 2014
* Underlying Asset: SME loans
* Trustor: Japan Finance Corporation (Aa2)
* Originator/Initial Servicer: The Ehime Bank, Ltd., Japan Finance
Corporation
* Arranger: Citigroup Global Markets Japan Inc.
Deal Name: March 2008 Regional Financial Institutions CLO
* Issue Amount: JPY 8,400,000,000 Senior Trust Certificates
* Dividend: Fixed
* Closing Date: March 25, 2008
* Final Maturity Date: April 15, 2014
* Underlying Asset: SME loans
* Issue Amount: JPY 460,000,000 Mezzanine Trust Certificates
* Dividend: Fixed
* Closing Date: March 25, 2008
* Final Maturity Date: April 15, 2014
* Underlying Asset: SME loans
* Trustor: Japan Finance Corporation (Aa2)
* Originator/Initial Servicer: RUMOI SHINKIN BANK, Japan Finance
Corporation
* Arranger: Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
These are cash CLO transactions backed by corporate loans in the
form of (1) SME loans originated by regional financial
institutions and purchased by JFC under its "purchase scheme"
securitization program, and (2) SME loans originated by JFC under
its "self-origination scheme" securitization program. In both
cases, the SME loans were originated for securitization.
Rating Rationale
The action reflects the improvement in credit enhancement due to
deal amortization.
The main factor for the uncertainty in Moody's analysis is the
macroeconomic environment for SMEs as well as the financing
environment.
As for Japanese economy, its recovery pace is slowing because of
weak domestic demand and waning overseas demand as well as the
appreciating yen. In spite of the tougher business environment,
the number of SME bankruptcies has stabilized and is at a five-
year low, due to the government support for SME financing.
However, the financing environment for SMEs will become tougher
when the government ends the emergency guarantee program at end-
March 2011. Taking into consideration the uncertainty about the
economic recovery, Moody's therefore believes that the number of
bankruptcies will rise gradually from the current low level.
In addition to the lending attitudes of financial institutions,
Moody's also pays attention to any extension by the government of
the Loan Repayment Moratorium Law, which expires at the end of
March 2011.
The increase in bankruptcies will be curbed if the law and the
Financial Services Agency's basic guidelines and policies for
financial inspections are maintained. If they are revised or
cancelled, the number of bankruptcies may increase at a higher
rate than Moody's expects, starting in April 2011.
Cash CLO series by Japan Finance Corporation
The portfolio default rate for JFC SME CLOs has been a little
higher since last April than in FY2009. New delinquencies
continue to occur in most transactions and most of the existing
delinquencies have become long-term in nature.
Moody's estimates that more than half of current long-term
delinquencies will default by, or at least remain delinquent,
until maturity. The remainder will probably catch up with
payments, or be bought back by their originators. Moody's expects
this situation to persist, so long as the tough business and
financing environment prevails.
Moody's expects the number of corporate bankruptcies to increase
gradually from now on, a factor it has incorporated into the
rating analysis.
As a result, Moody's is maintaining its current default rate
assumption for each transaction, as described in Moody's Special
Report, "Japan SME CDO Rating Monitoring: June 2010 Update."
In its rating analysis, Moody's takes into account expected
default rates, the outstanding delinquency rates, and changes in
credit enhancement, which comprise current subordination and
excess spread, using the CDOROM model.
These summarizes the key performance trends and expected default
rates for the affected transactions:
- CLO in September 2006 of Regional Financial Institutions
Since April 2010, there have been three defaults (JPY 49 million),
as stated in Moody's assumptions. There were also six short-term
(JPY 48 million) and eight long-term delinquencies (JPY 109
million).
At the end-September 2010, there were 14 delinquencies (JPY 157
million). Moody's expects the default rate for the underlying
pool to be around 2%, as some current delinquencies may yet
default.
Because of the amortization of the underlying loans, the
subordination ratio for the mezzanine tranche has increased to
13.9% as of end-September 2010, from 11.8% at end-June 2010.
- CLO in September 2007 of Regional Financial Institutions
Since last April, two defaults (JPY 37 million), have occurred,
which is lower than Moody's assumption. However, two short-term
delinquencies (JPY 36 million) occurred in the previous quarter.
There were 9 delinquencies (JPY 287 million), including seven (JPY
251 million) long-term delinquencies, as of end-September 2010.
Moody's expects the default rate for the underlying pool to be
around 2-3% as some delinquencies may yet default.
As a result of amortization, the subordination ratio for the
mezzanine tranche has increased to 15.1% as of end-September 2010,
from 12.0% at end-March 2009.
- CLO in December 2007 of Regional Financial Institutions
Since April 2010, two defaults (JPY 53 million) have occurred,
which is lower than assumed. However, delinquencies continue to
occur and two short-term delinquencies (JPY 65 million) have
occurred in the third quarter 2010.
There were 10 delinquencies (JPY 296 million), including eight
long-term delinquencies (JPY 231 million), as of end-September
2010. Moody's expects the default rate for the underlying pool to
be around 2-3%, as some delinquencies may yet default.
Because of amortization, the subordination ratio for the mezzanine
tranche has increased to 18.0% as of end-September 2010, from
14.8% at end-December 2009.
- March 2008 Regional Financial Institutions CLO
Since April 2010, three defaults (JPY 95 million) have occurred,
about in line with Moody's assumptions.
Delinquencies continue to occur and one short-term delinquency
(JPY 11 million) occurred in the third quarter of 2010. However,
as three delinquencies (JPY 105 million) were redeemed before the
loans matured, the number of delinquencies declined to six (JPY
250 million) at end-September 2010, including five long-term
delinquencies (JPY 239 million).
Moody's expects that the default rate for the underlying pool to
be around 3%, as some delinquencies may yet default.
Because of amortization, the subordination ratio for the mezzanine
tranche has increased to 11.5% as of end-September 2010, from
10.4% at end-December 2009.
Moody's did not receive or take into account a third party due
diligence report on the underlying assets or financial instruments
related to the monitoring of this transaction in the past six
months.
Regulatory Disclosures
Credit ratings are Moody's current opinions of the relative future
credit risk of entities, credit commitments, or debt or debt-like
securities. Moody's defines credit risk as the risk that an
entity may not meet its contractual, financial obligations as they
come due and any estimated financial loss in the event of default.
Credit ratings do not address any other risk, including but not
limited to: liquidity risk, market value risk, or price
volatility. Credit ratings do not constitute investment or
financial advice, and credit ratings are not recommendations to
purchase, sell, or hold particular securities. No warranty,
express or implied, as to the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any such
rating or other opinion or information is given or made by Moody's
in any form or manner whatsoever.
The credit risk of an issuer or its obligations is assessed based
on information received from the issuer or from public sources.
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. However, Moody's
is not an auditor and cannot in every instance independently
verify or validate information received in the rating process.
Moody's may change the rating when it deems necessary. Moody's
may also withdraw the rating due to insufficient information, or
for other reasons.
Information sources used to prepare the credit rating are these
parties involved in the ratings (such as the Originator, the
Servicer and the Trustee); public information; and confidential
and proprietary Moody's information.
Measures taken to ensure the quality of this information include
representations and warranties provided by the information
sources.
Moody's considers the quality of information available on the
issuer or obligation satisfactory for the purposes of maintaining
a credit rating.
Moody's Japan K.K. is a credit rating agency registered with the
Japan Financial Services Agency and its registration number is FSA
Commissioner (Ratings) No. 2.
The Financial Services Agency has not imposed any supervisory
measures on Moody's Japan K.K. in the past year.
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.
JLOC38 LLC: Fitch Takes Rating Actions on Various Classes
---------------------------------------------------------
Fitch Ratings has upgraded three classes and affirmed one class of
notes issued by JLOC38, LLC due April 2016, and simultaneously
withdrawn the rating on the Class X notes. The transaction is a
Japanese multi-borrower type CMBS securitisation. The rating
actions are as listed below:
-- JPY9.85bn* Class A notes upgraded to 'AAAsf' from 'Asf';
Outlook Stable;
-- JPY5.52bn* Class B notes upgraded to 'Asf' from 'BBBsf';
Outlook revised to Stable from Negative;
-- JPY5.20bn* Class C notes upgraded to 'BB+sf' from 'BBsf';
Outlook revised to Stable from Negative; and
-- JPY3.57bn* Class D notes affirmed at 'Dsf'; Recovery Rating
'RR4'.
* as of 4 November 2010
The rating on the interest-only Class X notes of 'AAAsf' with a
Stable Outlook has been withdrawn.
The ratings actions are the result of a performance review of the
underlying loan assets and collateral properties. Since the
previous rating action in October 2009, eight underlying loans
have been paid down in full at or prior to their maturity dates,
or as a result of workouts following loan default. Three other
underlying loans have been resolved and principal balance is
expected to be reflected on the next note payment date. Six
underlying loans are currently in default, and are in various
stages of their workout process.
While the collateral property level analysis resulted in Fitch's
cash flow assumptions being revised downwards for six out of the
24 remaining properties, improvement in credit enhancement levels
from the reduction of note principal was significant and led to
the upgrade of classes A, B and C. The pace of principal
redemption is expected to slow down over the near-term, since none
of the remaining 10 performing loans is scheduled to mature during
the next 14 months.
Fitch reviewed the operating performance of the underlying
property portfolio, taking into account the current Japanese
commercial real estate market, performance trends and prospects.
In addition to the cash flow assumptions revised for some
properties, the agency also reduced the stressed-sale cap rates
for a few office properties in central Tokyo, reflecting the
recent positive trends in the recovery of liquidity for these.
The rating actions also take into account concerns on the
transaction's relatively increased exposure to loans backed by
retail properties with certain tenant concentration, which have
limited the extent of the upgrades at this time.
Outlooks on the Class B and C notes have been revised to Stable
from Negative, reflecting the expected growth in credit
enhancement while incorporating the maturity schedule of the
remaining loan portfolio.
JLOC41 LLC: S&P Downgrades Rating on Class D-1 Notes to 'CC'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CC (sf)' from 'CCC-
(sf)' its rating on the class D-1 floating-rate notes issued under
the JLOC41 LLC transaction, and affirmed its ratings on the class
A, B, C-2, and D-2 notes issued under the same transaction. The
class C-1 notes have been fully redeemed. The ratings on the
class C-3 and D-3 notes were lowered to 'D (sf)' on Aug. 23, 2010.
Under this transaction, principal proceeds from each loan are used
to redeem several predetermined classes of notes. These notes
were originally backed by three loans, all of which have now
defaulted.
S&P lowered its rating on the class D-1 notes because the class is
effectively incurring a principal loss as a result of the
principal of one of the transaction's two remaining loans becoming
impaired.
The notes issued under this transaction were originally secured by
three loans extended to three obligors. The loans were initially
backed by 31 real estate trust certificates or real estate
properties. The transaction was arranged by Morgan Stanley Japan
Securities Co. Ltd., and ORIX Asset Management & Loan Services
Corp. is the transaction servicer.
The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's legal
final maturity date in February 2015 for the class A floating-rate
notes, and the full payment of interest and ultimate repayment of
principal by the legal final maturity date for the class B to D-2
floating-rate notes.
Rating Lowered
JLOC 41 LLC
JPY23.36 billion floating-rate notes due February 2015
Class To From Initial issue amount Coupon Type
----- -- ---- -------------------- -----------
D-1 CC (sf) CCC- (sf) JPY0.78 bil. Floating rate
Ratings Affirmed
JLOC 41 LLC
Class Rating Initial Issue Amount Coupon Type
----- ------ -------------------- -----------
A BBB+ (sf) JPY15.40 bil. Floating rate
B BB- (sf) JPY2.70 bil. Floating rate
C-2 CCC (sf) JPY0.86 bil. Floating rate
D-2 CCC- (sf) JPY0.69 bil. Floating rate
=========
K O R E A
=========
KYONGNAM BANK: Moody's Assigns 'D+' Bank Financial Strength Rating
------------------------------------------------------------------
Moody's Investors Service has assigned ratings to Kyongnam Bank
for the first time:
-- D+ Bank Financial Strength Rating
-- A3/Prime-1 global local currency long-term/short-term deposit
ratings
-- A3/Prime-1 foreign currency long-term/short-term deposit
ratings
-- The outlook for all the ratings is stable.
Ratings Rationale
"The BFSR of D+, which translates into a Baseline Credit
Assessment of Baa3, reflects the bank's good franchise in its home
markets, Gyeongnam province and Ulsan city, as well as its
adequate financial fundamentals," says Seung Jun Lee, a Moody's
analyst.
"However, the rating also considers Kyongnam's rather modest risk
positioning given the still-developing nature of its internal
controls," adds Lee.
"In addition, its net interest margin has been narrower than that
of other Korean regional banks with a similar focus on SME
lending, due mainly to the lower level of low-cost deposits in its
funding structure."
"In Moody's view, the probability of systemic support for Kyongnam
Bank is very high, which results in a three-notch uplift in the
GLC deposit rating to A3/Prime-1 from the bank's Baa3 BCA," says
Lee.
Kyongnam's A3/Prime-1 foreign currency deposit ratings are in line
with its local currency ones, as those are not constrained by
Korea's foreign currency deposit ceiling of A1.
Kyongnam Bank is wholly owned by Woori Finance Holdings (WFH, A2),
which is in turn 57%-owned by Korea Deposit Insurance Corporation.
However, Moody's did not incorporate any parental support from WFH
into Kyongnam's deposit ratings, given KDIC's plan (announced on
July 30, 2010) to sell Kyongnam Bank and privatize WFH.
The BFSR is underpinned by Kyongnam's leadership position in its
region, where the bank had market shares of 25% in deposits and
21% in loans at end-2009.
The rating is also supported by the bank's adequate capital, with
a Tier 1 capital ratio of 10.05% as of September 2010. However,
Kyongnam may face difficulty raising additional capital during the
privatization of WFH.
Kyongnam Bank's asset quality is adequate; its NPL ratio --
defined as substandard and below ratio -- was 1.61% as of
September 2010. In Moody's view, the pressure on asset quality is
likely to persist for the rest of the year because of the bank's
exposures to real estate project finance deals and the
shipbuilding industry.
Between 2008 and 2010, the bank was involved in a fraud case where
a few employees, using counterfeit documents, had colluded to
provide guarantees to several financial institutions for property
project finance loans as well as to several of Kyongnam's special
money trust accounts. Corrective action was taken by the
regulators in October 2010.
Kyongnam's total exposure to the fraud is an estimated KRW408.2
billion. It has set aside KRW106.5 billion and reported a
quarterly loss in the second quarter of 2010 via a special
provision. Moody's has incorporated this control issue into the
bank's BFSR and will monitor the bank's progress in dealing with
the fraud.
The bank's rating could be upgraded upon significant improvement
in the bank's asset quality and profitability driven by
strengthening risk management on credit exposure to riskier
obligor segments as well as continued growth with low-cost funding
.In addition, positive credit implication could arise if the bank
can readily access capital under its future shareholder.
The rating could be downgraded upon a deterioration in asset
quality, with NPLs rising above 5% of loans, or upon a decline in
its share of the local banking market due to severe competition
from nationwide commercial banks.
Kyongnam Bank was established in 1970 to provide financing for the
economic development of Gyeongnam province and Ulsan city. In
2000, after being affected by the 1997/1998 financial crisis in
Korea, Kyongnam Bank received a government capital injection
through KDIC. The bank was then acquired by WFH in 2001. As of
June 2010, the bank's assets were KRW23.4 trillion (approximately
US$21.0 billion).
====================
N E W Z E A L A N D
====================
BLACK ROBIN: Receivers Call for Expressions of Interest in Assets
-----------------------------------------------------------------
Emma Bailey at The Timaru Herald reports that receivers have
called for expressions of interest in the Rangatira. The report
relates that the estimated NZ$10 million freighter link with the
Chatham Islands went into receivership on October 20.
According to The Timaru Herald, receivers BDO called for
expressions of interest in Black Robin Freighters and its assets,
which include the Rangatira. The report notes that the company is
trading through the receivership with a shipment of supplies
heading off to the Chathams.
"This assignment is a receivership of a private company," The
Timaru Herald quoted BDO partner Stephen Tubbs as saying. "It is
not our firm's policy, and in fact would in my view be a breach of
the NZ Institute of Accountants Code of Ethics, to comment in the
public domain on the private business affairs of assignments we
undertake, beyond our statutory obligations to file reports with
the company's office or correspond with the company's creditors.
Our first report is due to be filed with the Companies Office on
December 22, 2010 with the receivers' six monthly report due
June 22, 2011."
The Rangatira has operated for 10 years, having fought off four
competitors, the report adds.
Black Robin Freighters is a Timaru shipping company.
FROZEN DIRECT: Operations Continue Under New Owners
---------------------------------------------------
Simon Hartley at the Otago Daily Times reports that food outlet
Frozen Direct has been sold to new operators, while its former
owner-operator has company liquidation proceedings in place as
issues are worked through with unsecured creditors.
The Otago Daily Times relates that liquidator Trevor Laing, of
Trevor Laing & Associates, was appointed after former owner
Malcolm Dodds initiated voluntary liquidation at the end of
October, for the sole outlet in Andersons Bay Rd in South Dunedin.
Mr. Laing told the Otago Daily Times that the sale covered
payments to secured creditors, IRD and wages. However, issues
were still being worked through with long-time suppliers who were
unsecured creditors, the report notes.
According to the Otago Daily Times, Mr. Laing said the sale was a
"good outcome", in that a business and all jobs were retained.
The Otago Daily Times reports that the outlet would also continue
to trade, having reached agreement to use the name Frozen Direct.
Frozen Direct Ltd is a Dunedin-based food outlet.
HUBSTA: Receivers Appointed; Biz Continues to Trade
---------------------------------------------------
Tim Hunter at BusinessDay.co.nz reports that receivers have been
appointed to Stephen Tindall-backed online retailer Hubsta,
operator of discount website thedeal.co.nz.
According to BusinessDay.co.nz, the business, an online clearance
house for wholesalers and retailers wanting to quit surplus stock,
is continuing to trade but founder Paul O'Shannessey is no longer
actively involved.
The company was set up four years ago by O'Shannessey and his wife
Kelly, who ran a wholesale import business. Warehouse founder Mr.
Tindall came on board in 2007, acquiring a 45 percent stake
through his investment company K One W One.
Receiver Lance Gilbertson, appointed on November 4, has yet to
file his first report, BusinessDay.co.nz reports.
JEAN JONES: Sale Expected Soon
------------------------------
Receivers of Jean Jones clothing stores say they have received an
excellent response from potential buyers and expect a sale before
the end of the year, nzherald.co.nz reports.
As reported in the Troubled Company Reporter-Asia Pacific on
October 27, 2010, Business Day said that the company behind
clothing retailer Jean Jones has entered receivership with the
receiver saying he is "hopeful of achieving a positive outcome."
Deloitte's Michael Horne was appointed to run the fashion chain's
trading company WRCC Limited, the report relates. According to
Business Day, Mr. Horne said that 15 of the chain's stores would
remain open, but four stores had been closed.
According to nzherald.co.nz, Mr. Horne said that a review of the
company's position confirmed earlier indications that the
nationwide women's fashion chain was fundamentally a strong
business and its problems were primarily caused by factors
external to its operations. The report relates Mr. Horne said
that Jean Jones' loyal customer base and viable business model
meant there was strong interest from prospective buyers.
Jean Jones is clothing retailer that was originally owned by
Michael Ward.
NATHANS FINANCE: Directors Drop Fight Against Directorship Ban
--------------------------------------------------------------
The New Zealand Herald reports that former directors of Nathans
Finance have dropped their application to fight an action to ban
them from future directorships, clearing the way for the Crown to
proceed.
The NZ Herald says directors Kenneth Moses and Donald Young were
fighting the Registrar of Companies' attempt in the High Court at
Auckland to ban them over the commercial failure of Nathans
Finance. They have since discontinued their applications to fight
the ban, the NZ Herald notes.
In July, the NZ Herald relates, the Ministry of Economic
Development's National Enforcement Unit said it had made steps to
ban Moses, Young, John Hotchin and Mervyn Doolan. The unit also
wanted to ban Gary Stevens, who was involved in related-party
lending with Nathans Finance.
About Nathans Finance
Nathans Finance Ltd went into receivership when the finance
company's trustee, Perpetual Trust Limited, appointed
receivers on August 20, 2007. The company owed approximately
NZ$174 million to some 7,000 investors. Nathans Finance is a
wholly owned subsidiary of VTL Group Limited, which also went into
receivership in November 2008. VTL Group owns a number of vending
machine related businesses which operate in New Zealand,
Australia, North America and Europe.
=================
S I N G A P O R E
=================
ENVIRONMENT MANAGEMENT: Creditors' Proofs of Debt Due November 22
-----------------------------------------------------------------
Creditors of Environment Management Technologies Pte Ltd, which is
in creditors' voluntary liquidation, are required to file their
proofs of debt by November 22, 2010, to be included in the
company's dividend distribution.
The company's liquidators are:
Neo Ban Chuan
Cameron Lindsay Duncan
c/o Korda Mentha Pte. Ltd.
30 Robinson Road
#12-01 Robinson Towers
Singapore 048546
MUVICOM PTE: Court Enters Wind-Up Order
---------------------------------------
The High Court of Singapore entered an order on October 29, 2010,
to wind up the operations of Muvicom Pte Ltd.
Recording Industry Performance Singapore Pte Ltd filed the
petition against the company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road, #05-11/#06-11
Singapore 069118
PROSPERITY INTERNATIONAL: Court Enters Wind-Up Order
----------------------------------------------------
The High Court of Singapore entered an order on October 29, 2010,
to wind up the operations of Prosperity International Logistics
(S) Pte Ltd.
The company's liquidator is:
Kung Seah Lim
c/o Kung Seah Lim Consultancy Pte Ltd
336 Smith Street #05-309
Singapore 050336
SELECT CAFE: Court to Hear Wind-Up Petition on November 19
----------------------------------------------------------
A petition to wind up the operations of Select Cafe Pte. Ltd. will
be heard before the High Court of Singapore on November 19, 2010,
at 10:00 a.m.
Select Group Limited filed the petition against the company on
October 27, 2010.
The Petitioner's solicitor is:
PK Wong & Associates LLC
133 Cecil Street
#18-02 Keck Seng Tower
Singapore 069535
===============
X X X X X X X X
===============
* Moody's: Global Default Rate Falls to 3.7% in October
-------------------------------------------------------
The trailing 12-month global speculative-grade default rate
dropped to 3.7% in October 2010, down from a level of 4.0% in
September, said Moody's Investors Service in a new report. A year
ago, the global default rate was much higher at 13.4%. The
ratings agency's default rate forecasting model now predicts that
the global speculative-grade default rate will fall to 2.8% by the
end of this year before declining to 1.9% by October 2011.
"Defaults continue to come in near, but generally below, our
expectations," said Albert Metz, Moody's Director of Credit Policy
Research. "Issuers are able to find the liquidity they need when
they need it."
In the U.S., the speculative-grade default rate fell to 3.6% in
October from 4.0% in September, while in Europe, the default rate
declined to 2.8% in October from 3.5% in October. The U.S. and
European default rate stood at 14.6% and 10.6% respectively, at
this time last year. Among U.S. speculative-grade issuers,
Moody's forecasting model foresees the default falling to 2.9% by
December 2010 and then declining to 2.2% a year from now. In
Europe, the forecasting model projects the speculative-grade
default rate will end the year at 2.1% before dropping to 1.2% by
October 2011.
A total of five Moody's-rated corporate debt issuers defaulted in
October, which sends the year-to-date default count to 45. This
is below Moody's January projection that 63 defaults would have
been recorded through the first ten months of the year. In
comparison, a total of 247 defaults were recorded in the
comparable time period last year. Across regions, all of
October's defaults were by North American issuers except for
Hipotecaria Su Casita, S.A. de C.V., which is based in Latin
America.
Across industries over the coming year, default rates are expected
to be highest in the Hotel, Gaming, & Leisure sector in the U.S.
and the Durable Consumer Goods sector in Europe.
Measured on a dollar volume basis, the global speculative-grade
bond default rate edged lower to 1.4% in October, down from 2.0%
in September.
Last year, the global dollar-weighted default rate was noticeably
higher at 19.3%.
In the U.S., the dollar-weighted speculative-grade bond default
rate ended at 1.1% in October, down from the level of 1.8% in
September. The comparable rate was 20.1% in October 2009. In
Europe, the dollar-weighted speculative-grade bond default rate
edged lower to 2.4% in October from 2.6% in September. At this
time last year, the European speculative-grade bond default rate
was 12.0%.
Moody's speculative-grade corporate distress index -- which
measures the percentage of rated issuers that have debt trading at
distressed levels -- came in at 14.1% in October, down from the
level of 15.0% in September. A year ago, the index was much
higher at 27.2%. In the leveraged loan market, no Moody's-rated
loan defaulters defaulted in October. Therefore the year-to-date
loan default count remained unchanged at 19. The trailing 12-month
U.S. leveraged loan default rate fell from 4.1% in September to
3.6% in October. A year ago, the loan default rate was 11.5%.
* S&P's 2010 Global Corporate Defaults Tally Now at 73
------------------------------------------------------
Four U.S.-based corporate issuers defaulted last week, raising the
year-to-date 2010 global corporate default tally to 73, according
to a report published by Standard & Poor's. By region, the
current year-to-date default tallies are 50 in the U.S., three in
Europe, nine in the emerging markets, and 11 in the other
developed region (Australia, Canada, Japan, and New Zealand).
According to the report, titled "Global Corporate Default Update
(Oct. 29 - Nov. 4, 2010) (Premium)," so far this year, missed
interest or principal payments are responsible for 27 defaults,
Chapter 11 and foreign bankruptcy filings account for 22,
distressed exchanges account for 19, receiverships account for
three, regulatory directives and administration account for one
default each.
Of the global corporate defaulters in 2010, 42% of issues with
available recovery ratings had recovery ratings of '6' (indicating
our expectation for negligible recovery of 0% to 10%), 12% of the
issues had recovery ratings of '5' (modest recovery prospects of
10% to 30%), 8% had recovery ratings of '4' (average recovery
prospects of 30% to 50%), and 17% had recovery ratings of '3'
(meaningful recovery prospects of 50% to 70%). And for the
remaining two rating categories, 12% of the issues had recovery
ratings of '2' (substantial recovery prospects of 70% to 90%) and
10% had recovery ratings of '1' (very high recovery prospects of
90% to 100%).
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
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 ***