/raid1/www/Hosts/bankrupt/TCRAP_Public/101111.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
Thursday, November 11, 2010, Vol. 13, No. 223
Headlines
A U S T R A L I A
CENTRO PROPERTIES: Allows Cromwell to Conduct Due Diligence
CHALLENGER WINE: Units Suspended From Trading on ASX
KRISPY KREME: Shuts 21 Local Stores Following Administration
MARYBOROUGH GOLF: On the Brink of Insolvency
RELIANCE RAIL: S&P Puts 'BB' Rating on CreditWatch Negative
RIVIERA MARINE: U.S. Bankruptcy Court Recognizes Australian Case
C H I N A
LUMENA RESOURCES: Moody's Reviews 'B2' Corporate Family Rating
H O N G K O N G
KANDARA LIMITED: Creditors' Proofs of Debt Due November 19
KIDDIE PRODUCTS: Court to Hear Wind-Up Petition on December 15
LCW INTERNATIONAL: Court Enters Wind-Up Order
MANDAR FINANCE: Court Enters Wind-Up Order
MEXWAY TECHNOLOGY: Court Enters Wind-Up Order
MING KAI: Court Enters Wind-Up Order
NOMINEE (HOLDING): Court Enters Wind-Up Order
OPUS COLLECTION: Court Enters Wind-Up Order
ROLEX SHIPPING: Court Enters Wind-Up Order
SUPREE CREATIONS: Court to Hear Wind-Up Petition on December 15
SURE BRIGHT: Creditors' Proofs of Debt Due November 22
TECHNOSTORE LIMITED: Creditors Get 100% & 50& Recovery on Claims
TOMSON COMPANY: Court to Hear Wind-Up Petition on December 15
TOY DEPOT: Court Enters Wind-Up Order
UNISIGN LIMITED: Court Enters Wind-Up Order
WAI ON: Pui and Cheung Appointed as Liquidators
WATFIELD TECHNOLOGY: Lau and Liang Appointed as Liquidators
WELY ASSOCIATE: Creditors' Proofs of Debt Due November 22
WILLING KNITWEAR: Court Enters Wind-Up Order
WISING DEVELOPMENT: Court Enters Wind-Up Order
YICKO FUTURES: Creditors' Proofs of Debt Due November 26
YINCHEN TIN: Court to Hear Wind-Up Petition on December 1
ZINDA CO: Court Enters Wind-Up Order
I N D I A
BENGAL UNITED: CRISIL Rates INR200 Million Cash Credit at 'B'
BHP INFRASTRUCTURE: CRISIL Assigns 'B' Rating to INR107MM Loan
GREENKO ENERGIES: CRISIL Cuts Rating on INR100MM Term Loan to 'C'
GV (GOD VISHNU): CRISIL Reaffirms 'B' Ratings on Various Debts
HILLS TRADE: CRISIL Assigns 'B+' Rating to INR205MM Term Loan
RAVIKIRAN POWER: CRISIL Cuts Rating on INR171.5MM Loan to 'B'
SHREE SIDDHNATH: CRISIL Reaffirms 'B' Rating on INR20MM Term Loan
SUMATICHAND GOUTI: CRISIL Reaffirms 'B+' Rating on INR1.4BB Credit
SUPREME HEATREATERS: CRISIL Reaffirms 'B' Ratings on Various Debts
SURAJMULL GOUTI: CRISIL Reaffirms 'B+' Rating on INR100MM Credit
TRADE INDIA: CRISIL Assigns 'B-' Rating to INR49.2MM Cash Credit
VALLABH TEXTILES: CRISIL Reaffirms 'BB' Rating on INR1.1BB Loan
I N D O N E S I A
GAJAH TUNGGAL: S&P Raises Corporate Credit Rating to 'B'
GARUDA INDONESIA: Recorded Profit Not Loss; IPO Remains on Track
LIPPO KARAWACI: Consent Solicitation Won't Affect Fitch's Rating
J A P A N
AIFUL CORP: Books JPY3.4BB Net Income in Six Months Ended Sept. 30
J-CORE15 TRUST: Fitch Downgrades Ratings on Five Classes
TAKEFUJI CORP: Shinsei to Advise on Bankruptcy Sponsor Selection
* JAPAN: Corporate Bankruptcies Down 9.91% in October 2010
K O R E A
KUMHO ASIANA: Creditors May Infuse Cash to Tire Unit This Month
N E W Z E A L A N D
EDZELL VINEYARDS: Property in Awatere Valley Put Up for Sale
MACPHERSON MARINE: Ex-Director Pleads Guilty on Fraud Charges
S I N G A P O R E
PACNET LIMITED: Fitch Assigns 'BB+' Rating to Senior Notes
- - - - -
=================
A U S T R A L I A
=================
CENTRO PROPERTIES: Allows Cromwell to Conduct Due Diligence
-----------------------------------------------------------
Centro Properties Group has granted Cromwell Group a right to
conduct exclusive due diligence around the Centro MCS Syndicates
funds management business.
Centro said in a statement to the Australian stock exchange today
that any transaction remains subject to negotiation of outstanding
terms and conditions and obtaining the required consents and
approvals.
Group Chief Executive Officer Robert Tsenin said that this was the
appropriate next step in the previously announced initiative by
Centro to seek interest in its leading retail syndicate platform.
"The decision to grant Cromwell a period of exclusivity is a
result of a detailed and extensive process undertaken by Centro
since late July that canvassed interest from a broad spectrum of
interested parties. We believe the potential transaction, should
it proceed, will continue to provide a superior service to
investors, and create value for all our stakeholders," Mr. Tsenin
said.
Bloomberg News said Centro, which manages an AU$18.6 billion
collection of 712 shopping centers in Australia, New Zealand and
the U.S., said in July it was seeking partners for its unlisted
funds management business, after restructuring and extending
AU$2.7 billion of debt. The group, which had AU$18.4 billion of
debt as of June 30, is also seeking buyers for more than AU$4
billion of assets, Bloomberg News added, citing a person familiar
with the situation.
Cromwell Group is an internally managed ASX listed REIT that
promotes and manages unlisted property investments and has
approximately AU$1.8 billion of assets under management.
About Centro Properties
Centro Properties Group (ASX:CNP)-- http://www.centro.com.au/--
is a retail investment organization specializing in the ownership,
management and development of retail shopping centres. Centro
manages both listed and unlisted retail property and has an
extensive portfolio of shopping centres across Australia, New
Zealand and the United States. Centro has funds under management
of US$24.9 billion.
* * *
Centro Properties Group owes its creditors as much as AU$6.6
billion and its deadline to repay these debts has been extended
four times since December 2007, when the company's market value
plunged.
The Troubled Company Reporter-Asia Pacific reported on July 30,
2010, CNP secured a one-year extension from December 31, 2010, to
December 31, 2011, for US$2.3 billion of debt within Super LLC (a
joint venture of CNP, Centro Retail Trust and Centro MCS 40). The
extension includes Super LLC's US$1.7 billion bridge term loan
(US$1.2 billion CNP, US$0.5 billion CER) and US$580.0 million of
additional debt.
CHALLENGER WINE: Units Suspended From Trading on ASX
----------------------------------------------------
Business Day reports that Challenger Wine Trust had its units
suspended from trading on the ASX last week, when it disclosed it
was in confidential discussions with third parties.
According to the report, the wine glut has caused grape prices to
plummet, which has slashed vineyards' revenue streams and in turn
put pressure on their balance sheets as vineyard land values fall.
Business Day notes that in the year to June, Challenger Wine wrote
down the value of its vineyards by 14% and that followed a 12%
write-down in the previous year. With further falls possible, the
report relates, Challenger Wine was at risk of breaching the loan
to valuation ratios of its banking covenants and has been looking
at various ways to shore up its balance sheet for several months.
Concern over Challenger's prospects saw its unit price drop to A14
cents on the ASX last week, compared to a net asset value of A49c,
leading to speculation there could be a discounted capital raising
or substantial sell-down of assets, with its New Zealand vineyards
likely to be at the top of the list, Business Day relates.
Challenger Wine's largest New Zealand holding, the 361ha
Crownthorpe vineyard in Hawke's Bay, has declined in value by
29.2% since 2007, the report discloses.
Challenger Wine Trust (ASX:CWT) -- http://www.challenger.com.au/
-- is an Australia-based investment company. The principal
activity of the Trust is to invest in a portfolio of vineyards and
wineries that are leased primarily to wine companies. As of
June 30, 2008, it owned 23 vineyards and two wineries located
across Australia and New Zealand.
KRISPY KREME: Shuts 21 Local Stores Following Administration
------------------------------------------------------------
Alice Uribe at ninemsn Money reports that Krispy Kreme Australia
has closed 21 stores around the country, a week after calling in
administrators to decide the company's fate.
According to the report, the doors have been shut on 15 stores in
New South Wales, five in Victoria and one in Queensland, while
three stores were closed in the ACT last week.
Ms. Uribe notes that some of the branches closed include the
Sydney stores on George Street in the CBD, Hornsby, Chadstone,
Crown Casino, Brisbane and locations on the Central Coast in New
South Wales. More than 200 staff have been affected by the
closures, with 14 full-time, 142 part-time and 44 casual workers
losing their jobs and being made redundant, the report relates.
Ms. Uribe reports that a further 61 employees from the closed
locations have been given jobs in nearby stores.
Meanwhile, ninemsn Money relates that staff from the Tuggerah and
Lake Haven stores on NSW's Central Coast complained about the way
in which the closures were handled by the Australian arm of the
US-owned company. The report notes that while some Sydney staff
has been offered transfers, it is understood that staff on the
Central Coast have not been given this option. The Central Coast
Krispy Kreme workers were told they would receive redundancy and
other payouts by early December, however they had concerns that it
could take longer, Ms. Uribe relates.
The remaining Krispy Kreme locations will continue to trade as
usual as the administration process continues, an unnamed
spokesperson said, the report adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 2, 2010, Krispy Kreme Doughnuts Australia entered voluntary
administration, with the privately owned Australian arm of the
American doughnut giant placed into the hands of Sydney accounting
firm Smith Hancock. Krispy Kreme Australia spokesman Matt Horan
told the Herald Sun that the company was placed into the
hands of accountancy firm Smith Hancock after a directors meeting
concluded the company was at risk of defaulting on creditors. The
Herald Sun said that company directors attributed the slide in
company profits to location, sales decline, and high rents and
distribution costs. Smith Hancock will undertake a review of the
company and its business in Australia over the next month, with
Krispy Kreme stores to remain open during that time. Once the
administrators have completed their review, unprofitable stores
may be closed or sold off but Mr. Horan has said all employee
entitlements will be paid.
Krispy Kreme Australia, unlike the United States operation, has no
franchise stores and is a wholly owned private company. Krispy
Kreme Doughnuts first opened in Australia at its Penrith site in
2003, since then expanding to 54 Krispy Kreme outlets employing
660 staff in the seven years since, the highest of any country
outside America.
MARYBOROUGH GOLF: On the Brink of Insolvency
--------------------------------------------
Tracey Joynson at Fraser Coast Chronicle reports that Maryborough
Golf Club has been advised by the Queensland Government that it is
on the brink of insolvency.
Fraser Coast Chronicle relates that a letter from the Fair Trading
office sent late last month said the club's auditor had raised
concerns in relation to the viability of the association, as its
current liabilities exceeded current assets.
"The auditor has advised that there is significant uncertainty in
relation to whether the association can continue as a going
concern," the letter said, according to Fraser Coast Chronicle.
According to Fraser Coast Chronicle, an emergency meeting of
members was held last week, where recently elected club treasurer
Marvin Reck filed a sobering report saying the club averaged a
monthly shortfall of AU$15,000 to AU$20,000 per month.
Fraser Coast Chronicle notes Mr. Reck expressed concern about the
direction, control of expenditure and day-to-day running of the
club in the past two to three years.
Mr. Reck, as cited by Fraser Coast Chronicle, said the club was in
serious financial difficulty. "Our cash flow situation has
reached a critical point."
According to Fraser Coast Chronicle, Mr. Reck said a combination
of factors had led to the serious financial difficulty. These
included:
-- declining membership numbers;
-- a fall in bar sales and poker machine profits;
-- increased loans and interest expenses after the
purchase of a new clubhouse bar and clubhouse
equipment, a renovated kitchen, updated poker
machines and new golf course machinery; and
-- rising repair and maintenance costs.
The government has asked the association to advise how it intended
to extinguish its liabilities and what action it would take to
continue operating, Fraser Coast Chronicle adds.
Maryborough Golf Club -- http://maryborough.au-golf.net/-- is a
golf course based in Queensland, Australia.
RELIANCE RAIL: S&P Puts 'BB' Rating on CreditWatch Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had placed its
'BBB-' ratings on the AU$2.06 billion senior-secured debt and the
'BB' rating on the AU$100 million junior-secured debt issued by
Reliance Rail Finance Pty Ltd. on CreditWatch with negative
implications. This follows the announcement by the New South
Wales Minister of Transport that RailCorp was not expecting the
Reliance Rail project trains to be ready for passenger service
until sometime after December 2010.
Reliance Rail, the consortium that holds the contract to
manufacture, commission and maintain the 78 commuter trains for
the Sydney rail network, maintains that the current December 2010
timeframe can be met, although it has indicated that the timeframe
is tight.
"In S&P's opinion, there is no capacity for Reliance Rail to
absorb further delays in delivery of the initial train sets and to
maintain the current issue ratings on the project's senior-secured
and junior-secured debt," said Standard & Poor's credit analyst
Philip Grundy. "S&P is concerned that additional delays will
further reduce the capacity of the project to absorb the flow-on
effect of delays across the delivery program, and flexibility to
deal with other issues that may arise."
In addition, S&P note that the risk of default of the project's
bond insurers' Syncora Guarantee Inc. and FGIC UK Ltd.-has not
improved, and S&P remain concerned about the risk of non-
availability of the project's bank debt facility.
RIVIERA MARINE: U.S. Bankruptcy Court Recognizes Australian Case
----------------------------------------------------------------
The Hon. Caryl E. Delano of the U.S. Bankruptcy Court for the
Middle District of Florida recognized the Chapter 15 cases of
Riviera Marine (Int.) Pty Ltd., et al., as a foreign main
proceeding.
Riviera Group -- http://www.riviera.com.au/--is a luxury boat
builder based in Queensland, Australia.
Riviera Group was placed into voluntary receivership in May 2009.
Deloitte partners Chris Campbell, Vaughan Strawbridge and Richard
Hughes were appointed receivers and managers of Riviera.
According to the Brisbane Times, Mr. Campbell said it was proposed
to sell Riviera as a going concern after a restructuring of the
company. The Brisbane Times said Riviera shed 117 of its Gold
Coast staff in January 2009 and cut more than 300 staff from its
Coomera headquarters in 2008. The company also closed its
production line for three weeks, from April 10 to May 5, in a bid
to clear stock held by international dealers, the Brisbane Times
added.
In July 2010, Riviera Group said it has received written notice on
June 25, 2010, that the Deed of Company Arrangement established in
conjunction with Riviera's creditors in January this year has now
been completed and the company has now officially exited from
administration.
Riviera Marine (Int.) Pty Ltd., part of a group of Australian
companies that manufacture and sell luxury boats, sought
bankruptcy protection in the U.S. (Bankr. M.D. Fla. Case No.
10-21722). The Company estimated assets and debt of as much as
$50 million each in the Chapter 15 petition. Four affiliates also
sought protection. Daniel C. Guarnieri, Esq., at Nelson Hesse,
LLP, in Sarasota, Florida, serves as counsel to Stephen James
Parbery, foreign representative of Riviera.
=========
C H I N A
=========
LUMENA RESOURCES: Moody's Reviews 'B2' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has placed its B2 corporate family and
its B2 senior unsecured bond ratings on Lumena Resources
Corporation under review for possible downgrade.
The review follows Lumena's announcement of its proposed
acquisition of Sino Polymer New Materials Co., Ltd., a
polyphenylene sulphide producer in China, which is 43%-owned by
Mr. Suolang Duoji, the Chairman of Lumena. The acquisition is
designed to expand Lumena's downstream business, asset base, cash
flow and add product diversity.
Lumena plans to acquire up to 95% equity interest of Sino Polymer
which has been valued at US$1.5 billion - for 100% ownership. 90%
of the acquisition consideration will be settled by an issue of
common shares by Lumena, 10% by cash.
"The proposed acquisition represents an aggressive expansion, as
the target company is slightly bigger by revenue than Lumena,"
says Jiming Zou, a Moody's Analyst.
"In addition, the benefits of any potential synergies are yet to
be established, as at present Sino Polymer does not rely on Lumena
for its raw material supply to any material extent," says Zou.
"In the absence of well established banking facilities, Lumena's
funding risk profile will likely be increased with the expanded
operations," says Zou.
"Even though Lumena will fund most of the acquisition with new
shares, it still needs to raise around RMB 1 billion, which will
add funding risk," adds Zou.
"Furthermore, a substantial amount of assets -- about RMB 1.6
billion - Sino Polymer's assets have been pledged in support of
related party transactions. Whether Sino Polymer can resolve
these charges on its assets is unclear at this point," Zou
continues.
"These elements -- the aggressive transaction, the amount of both
companies' near-term funding needs, and the discharge of asset
pledges -- could affect Lumena's ability to comply with the
covenants of its US$250 million bonds, which may pressure the
current ratings."
In its review Moody's will assess Lumena's ability (1) to raise
RMB 1 billion to complete the acquisition; (2) to remove the
charge on Sino Polymer's assets; and (3) maintain a credit profile
that will not affect its obligations under the bond indenture.
The last rating action on Lumena was taken on 27 January 2010 when
its ratings were downgraded to B2 from B1 after Moody's completed
a rating review initiated on 30 December 2009, which followed
Lumena's announcement that controlling shareholder Suolang Duoji
had pledged a stake of about 20.5% in the company for a short-term
loan from Bank of China International.
Lumena Resources Corp. mines, processes, and manufactures natural
thenardite products. Thenardite is also known as anhydrous sodium
sulphate, a basic chemical. Lumena operates two mines and
processing facilities in Sichuan Province in China with an annual
production capacity of around 1.6 million tons. It was listed on
the Hong Kong Stock Exchange in June 2009.
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.
================
H O N G K O N G
================
KANDARA LIMITED: Creditors' Proofs of Debt Due November 19
----------------------------------------------------------
Creditors of Kandara Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Nov. 19,
2010, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on November 1, 2010.
The company's liquidators are:
Lam Wai Ping Gordon
Lam Tsz Ying Geoffrey
Luen On Building
2nd Floor, 6-7 Wo On Lane
Central, Hong Kong
KIDDIE PRODUCTS: Court to Hear Wind-Up Petition on December 15
--------------------------------------------------------------
A petition to wind up the operations of Kiddie Products Company
Limited will be heard before the High Court of Hong Kong on
December 15, 2010, at 9:30 a.m.
Juliana O. Y. Chan filed the petition against the company.
LCW INTERNATIONAL: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Hong Kong entered an order on January 29, 2010,
to wind up the operations of LCW International Limited.
The company's liquidator is Chiu Koon Shou.
MANDAR FINANCE: Court Enters Wind-Up Order
------------------------------------------
The High Court of Hong Kong entered an order on October 27, 2010,
to wind up the operations of Mandar Finance Company Limited.
The official receiver is E T O'Connell.
MEXWAY TECHNOLOGY: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Hong Kong entered an order on January 11, 2010,
to wind up the operations of Mexway Technology Trading Limited.
The company's liquidator is Chiu Koon Shou.
MING KAI: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on October 27, 2010,
to wind up the operations of Ming Kai Finishing Company Limited.
The official receiver is E T O'Connell.
NOMINEE (HOLDING): Court Enters Wind-Up Order
---------------------------------------------
The High Court of Hong Kong entered an order on August 7, 2009, to
wind up the operations of Nominee (Holding) Limited.
The company's liquidator is Chiu Koon Shou.
OPUS COLLECTION: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on October 27, 2010,
to wind up the operations of Opus Collection Limited.
The official receiver is E T O'Connell.
ROLEX SHIPPING: Court Enters Wind-Up Order
------------------------------------------
The High Court of Hong Kong entered an order on March 12, 2010, to
wind up the operations of Rolex Shipping Co., Limited.
The company's liquidator is Chiu Koon Shou.
SUPREE CREATIONS: Court to Hear Wind-Up Petition on December 15
---------------------------------------------------------------
A petition to wind up the operations of Supree Creations Limited
will be heard before the High Court of Hong Kong on December 15,
2010, at 9:30 a.m.
DBS Bank (Hong Kong) Limited filed the petition against the
company.
The Petitioner's Solicitors are:
Wilkinson & Grist
6th Floor, Prince's Building
10 Chater Road, Hong Kong
SURE BRIGHT: Creditors' Proofs of Debt Due November 22
------------------------------------------------------
Sure Bright Limited, which is in members' voluntary liquidation,
requires its creditors to file their proofs of debt by Nov. 22,
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
TECHNOSTORE LIMITED: Creditors Get 100% & 50& Recovery on Claims
----------------------------------------------------------------
Technostore Limited which is in liquidation, declared dividend to
its creditors on November 5, 2010.
The company paid 100% and 50% for preferential and ordinary
claims.
The company's liquidator is:
Kenny King Ching Tam
Room 908, 9/F
Nan Fung Tower, 173 Des Voeux Road
Central, Hong Kong
TOMSON COMPANY: Court to Hear Wind-Up Petition on December 15
-------------------------------------------------------------
A petition to wind up the operations of Tomson Company Limited
will be heard before the High Court of Hong Kong on December 15,
2010, at 9:30 a.m.
DBS Bank (Hong Kong) Limited filed the petition against the
company.
The Petitioner's Solicitors are:
Wilkinson & Grist
6th Floor, Prince's Building
10 Chater Road, Hong Kong
TOY DEPOT: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on October 27, 2010,
to wind up the operations of Toy Depot (Hong Kong) Limited.
The official receiver is E T O'Connell.
UNISIGN LIMITED: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on October 27, 2010,
to wind up the operations of Unisign Limited.
The official receiver is E T O'Connell.
WAI ON: Pui and Cheung Appointed as Liquidators
-----------------------------------------------
Pui Chiu Wing and Cheung Lai Kuen on June 11, 2010, were appointed
as liquidators of Wai On Dyeing & Finishing 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
WATFIELD TECHNOLOGY: Lau and Liang Appointed as Liquidators
-----------------------------------------------------------
Mr. Lau Siu Hung and Mr. Liang Yang Keng on October 5, 2010, were
appointed as liquidators of Watfield Technology Limited.
The liquidators may be reached at:
Mr. Lau Siu Hung
Mr. Liang Yang Keng
Rooms 1909-10 19/F
Nan Fung Tower
173 Des Voeux Road
Central, Hong Kong
WELY ASSOCIATE: Creditors' Proofs of Debt Due November 22
---------------------------------------------------------
Wely Associate Investments Limited, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by November 22, 2010, to be included in the company's dividend
distribution.
The company's liquidator is:
E T O'Connell
10th Floor, Queensway Government Offices
66 Queensway
Hong Kong
WILLING KNITWEAR: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on October 27, 2010,
to wind up the operations of Willing Knitwear Factory Limited.
The official receiver is E T O'Connell.
WISING DEVELOPMENT: Court Enters Wind-Up Order
----------------------------------------------
The High Court of Hong Kong entered an order on November 5, 2009,
to wind up the operations of Wising Development Limited.
The company's liquidator is Chiu Koon Shou.
YICKO FUTURES: Creditors' Proofs of Debt Due November 26
--------------------------------------------------------
Creditors of Yicko Futures Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Nov. 26,
2010, to be included in the company's dividend distribution.
The company's liquidator is:
Lau Siu Hung
Nan Fung Tower
Room 1909-10
173 Des Voeux Road
Central, Hong Kong
YINCHEN TIN: Court to Hear Wind-Up Petition on December 1
---------------------------------------------------------
A petition to wind up the operations of Yinchen Tin Industry Group
Limited will be heard before the High Court of Hong Kong on
December 1, 2010, at 9:30 a.m.
DBS Bank (Hong Kong) Limited filed the petition against the
company.
The Petitioner's Solicitors are:
Wilkinson & Grist
6th Floor, Prince's Building
10 Chater Road, Hong Kong
ZINDA CO: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on October 9, 2009,
to wind up the operations of Zinda Co. Limited.
The company's liquidator is Chiu Koon Shou.
=========
I N D I A
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BENGAL UNITED: CRISIL Rates INR200 Million Cash Credit at 'B'
-------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to Bengal United Credit
Belani Housing Ltd's cash credit facility.
Facilities Ratings
---------- -------
INR200 Million Cash Credit B/Stable (Assigned)
The ratings reflect BUCBHL's weak financial risk profile, marked
by a small net worth and limited financial flexibility (because of
significant funding risks arising out of low saleability of its
ongoing projects). These weaknesses are partially offset by good
track record of Belani Group, of which BUCBHL is part, in
executing real estate projects and association with West Bengal
Housing Board (WBHB).
Outlook: Stable
CRISIL believes that BUCBHL's liquidity will remain weak over the
medium term because of heavy dependence on sale of residential
units to fund the ongoing project. The outlook may be revised to
'Positive' if there is considerable improvement in the sale of the
ongoing project. Conversely, the outlook may be revised to
'Negative' if project execution is delayed.
About Bengal United
BUCBHL is an equal joint venture between WBHB and United Credit
Belani Group. BUCBHL has been set up to develop two residential
projects, Hiland Wood and Hiland Willows, in Rajarhat, Kolkata.
UCBG is an association between Kolkata-based Belani group, which
is into real estate, and United Credit Ltd, which is a non-banking
financial company. Hiland Wood has been constructed (a large
portion of the project has been sold out), while Hiland Willows is
under construction.
For 2009-10 (refers to financial year, April 1 to March 31),
BUCBHL reported a net profit of INR36.45 million on a total income
of INR1155 million, against a net profit of INR11.4 million on a
total income of INR385.0 million for the previous year.
BHP INFRASTRUCTURE: CRISIL Assigns 'B' Rating to INR107MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of BHP Infrastructure Pvt Ltd.
Facilities Ratings
---------- -------
INR144.90 Million Cash Credit B/Stable (Assigned)
INR107.00 Million Term Loan B/Stable (Assigned)
INR10.00 Million Letter of
Credit/ Bank Guarantee P4 (Assigned)
The ratings reflect BHP's weak financial risk profile marked by
high gearing, small net worth, and weak debt protection metrics,
and small scale of operations. These rating weaknesses are
partially offset by BHP's promoters' extensive experience in the
crushing and screening equipment (CSE) manufacturing business.
Outlook: Stable
CRISIL believes that BHP will maintain its business risk profile,
supported by its promoters' industry experience, while its
financial risk profile will remain weak, with high gearing and
small net worth, over the medium term. The outlook may be revised
to 'Positive' if BHP's financial risk profile improves
significantly, most likely because of increased efficiency in
working capital management or fresh equity infusion by the
promoters. Conversely, the outlook may be revised to 'Negative'
if BHP's working capital requirements increase, capital structure
weakens because of large, debt-funded capital expenditure, or
operating margin deteriorates.
About BHP Infrastructure
BHP was established by Mr. Ajay Batra in 2003 as a distributor of
CSE for Terex Cedarapids (CSE manufacturing arm of Terex Inc, USA,
rated 'BB-/Stable' by Standard & Poor's). Within the next two
years, Mr. Batra set up a CSE manufacturing unit in Faridabad
(Haryana) after buying the technology from Terex, and ended the
distributorship immediately. BHP designs and fabricates a variety
of stone and iron ore CSE (including spares; the segment
contributes around 90 per cent to BHP's revenues) such as jaw
crushers, cone crushers, and vertical shaft impact (VSI) crushers,
and manufactures bucket-conveying systems for cement plants
(around 7 per cent of revenues). BHP also contract manufactures
compact CSE (around 7 per cent of revenues) for Rubble Master, an
Austria-based compact crusher manufacturer. BHP sells CSE under
its brand Bazer. The company has a manufacturing unit in
Faridabad, a 35-member engineering and designing team, and an
employee base of 300.
BHP reported a profit after tax (PAT) of INR12 million on an
operating income of INR373 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR13
million on net sales of INR365 million for 2008-09.
GREENKO ENERGIES: CRISIL Cuts Rating on INR100MM Term Loan to 'C'
-----------------------------------------------------------------
CRISIL has downgraded its rating outlook on Greenko Energies Pvt
Ltd's bank facilities to 'C' from 'BBB-/Negative'.
Facilities Ratings
---------- -------
INR14 Million Working Capital C (Downgraded from
Demand Loan Limits BBB-/Negative)
INR100 Million Term Loan C (Downgraded from
BBB-/Negative)
The downgrade reflects instances of delay by GEPL's in repayment
of its unrated term debt obligations over the past 3 months; this
is despite ample liquidity following infusion of INR3.6 billion of
equity in 2009-10 (refers to financial year, April 1 to March 31).
The rating also factors in GEPL's large, consolidated presence in
high-growth renewable energy sector and its diversified generation
portfolio, imparting stability and visibility to revenues and its
healthy financial risk profile aided by strong equity infusion
from its parent. These strengths are partially offset by GEPL's
aggressive, debt-funded growth plans and implementation risks
associated with the various projects in pipeline.
About Greenko Energies
GEPL was incorporated as Sri Balaji Biomass Power Pvt Ltd (Balaji)
in July 2000 and the name was changed to GEPL in 2008. GEPL is a
subsidiary of Greenko Group Plc (Greenko), based in the Isle of
Man, and promoted by Mr. Anil Chalamalasetty and Mr. Mahesh Kolli.
Greenko owns and operates renewable energy plants in India.
Greenko owns and operates renewable energy plants in India,
through GEPL, which is the holding and funding arm for all
projects. As on September 2010, GEPL has eight biomass and seven
hydroelectric plants, and one liquid-fuel-based plant in India,
with a total operational capacity of 188.55 megawatts (MW). In
addition, Greenko has a total licensed capacity of 502.60 MW which
is planned to be operational by 2013-2014.
GEPL reported a provisional profit after tax (PAT) of INR2 million
on net sales of INR286 million for 2009-10, against a PAT of INR21
million on net sales of INR223 million for 2008-09.
GV (GOD VISHNU): CRISIL Reaffirms 'B' Ratings on Various Debts
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of G.V (God Vishnu) Rice
Unit continue to reflect GVRU's weak financial risk profile,
driven by the working-capital-intensive nature of its business,
and its exposure to risks relating to its small scale of
operations in the fragmented rice processing industry, unfavorable
changes in regulatory policies, and fluctuations in raw material
prices with dependence on the monsoon. These weaknesses are
partially offset by the benefits that the firm derives from its
promoters' experience in the rice business, and the healthy growth
prospects for the industry.
Facilities Ratings
---------- -------
INR10.0 Million Cash Credit B/Stable (Reaffirmed)
INR14.7 Million Term Loan B/Stable (Reaffirmed)
INR140.0 Million Packing Credit P4 (Reaffirmed)
Outlook: Stable
CRISIL believes that GVRU's financial risk profile will remain
stretched over the medium term because of the firm's working-
capital-intensive operations; furthermore, the firm's scale of
operations is expected to remain small over the near term. The
outlook could be revised to 'Positive' in case of a substantial
and sustainable improvement in GVRU's capital structure and scale
of operations. Conversely, the outlook could be revised to
'Negative' in case of further deterioration in the firm's capital
structure, or pressure on its profitability.
Summary Update
In 2009-10 (refers to financial year, April 1 to March 31), GVRU
has shown slight improvement in its operating margin, and has
reported above 90% growth in its revenues backed by the full
utilisation of its recently commissioned milling and sorting
capacities. Out of total revenues of around INR1 billion in
2009-10, 60% was contributed by the PUSA 1121 variety (price
range: USD1040 to USD1050 per tonne), 25% by normal basmati rice
(USD925 to USD950 tonne), and 10% from higher quality basmati rice
(USD1450 to USD1500 tonne).
GVRU reported a profit after tax (PAT) of INR6.4 million on net
sales of INR991.9 million for 2009-10, against a PAT of INR1.7
million on net sales of INR547.7 million for 2008-09.
About G.V (God Vishnu)
GVRU is a partnership firm promoted by the Bansal family in 1987.
The firm is engaged in milling, processing, and selling rice in
the export and domestic markets. It mainly produces par-boiled
rice, which has high demand in the Middle East and Iran. GVRU is
also engaged in trading activities, whereby it procures semi-
finished rice from other small mills, grades and sorts the rice at
its plant, and exports it. The firm has its unit in Karnal
(Haryana) with a capacity of 7 tonnes per hour (tph) for milling,
and 9 tph for sorting, of which 5 tph of milling capacity and
2 tph of sorting capacity were added in October 2008. The firm
also undertook rice processing on job work basis in 2008-09 to
utilise its expanded installed capacity.
HILLS TRADE: CRISIL Assigns 'B+' Rating to INR205MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'B+/ Stable/P4' ratings to Hills Trade
Agencies' bank facilities.
Facilities Ratings
---------- -------
INR80.00 Million Cash Credit B+/ Stable (Assigned)
INR205.00 Million Term Loan B+/ Stable (Assigned)
INR150.00 Million Bank Guarantee P4 (Assigned)
The ratings reflect HTA's weak financial risk profile marked by
small net worth, high gearing, and average debt protection
metrics, small scale of operations, and geographically
concentrated revenue profile. These rating weaknesses are
partially offset by HTA's established customer relations in the
bamboo industry and the firm's recent diversification into civil
construction business.
Outlook: Stable
CRISIL believes that HTA's scale of operations will remain small,
and its financial flexibility will remain restricted by its small
net worth and high gearing, over the medium term. The outlook may
be revised to 'Positive' if HTA scales up and sustains its
operations, or reports a more-than-expected increase in its net
worth. Conversely, the outlook may be revised to 'Negative' if
the firm's liquidity weakens because of insufficient cash accruals
vis-a-vis debt obligations, most likely because of increased
insurgency problems in North East India, or if the firm undertakes
larger-than-expected debt-funded capital expenditure programme,
thereby weakening its capital structure over the medium term.
About Hills Trade
HTA was established in 1993 by the Gandhi family, in Guwahati
(Assam). Since its inception, the firm has been supplying bamboo
to paper mills. In 2009-10 (refers to financial year, April 1 to
March 31), the firm diversified into civil construction, building
roads and bridges for the Public Works Department (PWD) of Assam
Government and the Indian Railways. A bamboo forest has been
leased out to HTA for 30 years by the Government of Assam, and the
firm pays royalties for the same. The firm also plans to set up a
stone-crushing plant, for INR140 million, which will be used for
captive consumption and for catering to the local market.
HTA reported a profit after tax (PAT) of INR5.8 million on net
sales of INR41.3 million for 2009-10, against a PAT of INR23
thousand on net sales of INR21.1 million for 2008-09.
RAVIKIRAN POWER: CRISIL Cuts Rating on INR171.5MM Loan to 'B'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Ravikiran Power Projects Pvt Ltd to 'B/Negative' from
'BB+/Negative'.
Facilities Ratings
---------- -------
INR28.5 Million Working Capital B/Negative (Downgraded from
Demand Loan Limits 'BB+/Negative)
INR171.5 Million Term Loan B/Negative (Downgraded from
'BB+/Negative)
The downgrade reflects the deterioration in the company's business
risk profile, on back of operational disruptions in 2009-10
(refers to financial year, April 1 to March 31) and also the
ongoing dispute with Karnataka Power Transmission Corporation Ltd
(KPTCL) over tariffs. Ravikiran Power reported a cash loss in
2009-10 and is expected to report losses over the medium term till
the dispute with KPTCL is resolved. The rating of Ravikiran Power
also factors the downgrade in the rating of its parent Greenko
Energies Pvt Ltd (GEPL, rated 'C' by CRISIL)- repayment of its
debt obligations are supported by infusion of funds from the
parent company.
The ratings reflect Ravikiran Power's weak financial risk profile
marked by high gearing and weak debt protection measures, risks
relating to availability and volatility in its raw materials.
These rating weaknesses are partially offset by the financial
support the company receives from its parent, Greenko Energies Pvt
Ltd (GEPL).
Outlook: Negative
CRISIL believes that Ravikiran Power's business risk profile will
remain constrained over the medium term due to the low plant load
factor of the power plant and high raw material prices. The cash
accruals of the company is expected to remain weak until the
dispute with KPTCL is resolved. The rating may be downgraded
further in case Ravikiran Power's debt repayment ability is
impacted by the dispute, or if there is any delay in financial
support from GEPL. Conversely, the outlook may be revised to
'Stable' if the dispute with KTPCL ends favourably for Ravikiran
Power, or its operating efficiencies improve significantly,
leading to improvement in its business risk profile.
About Ravikiran Power
Set up in 2000, Ravikiran Power, a wholly owned subsidiary of
GEPL, is engaged in power generation; the company has a total
installed capacity of 8 megawatts (MW). It produces biomass
power, using rice husk as feedstock. The company started
operations in 2006-07.
GEPL is a Greenko Group Plc company promoted by Mr. Anil
Chalamalasetty and Mr. Mahesh Kolli. Greenko owns and operates
renewable energy plants in India. As on September 2010, Greenko
has eight biomass and seven hydroelectric plants, and one liquid-
fuel-based plant in India, with a total operational capacity of
188.55 megawatts (MW). In addition, Greenko has a total licensed
capacity of 502.60 MW which is planned to be operational by 2013-
2014.
Ravikiran Power reported a provisional net loss of INR24.9 million
on net sales of INR108.2 million for 2009-10, against a profit
after tax of INR12.5 million on net sales of INR123.9 million for
2008-09.
SHREE SIDDHNATH: CRISIL Reaffirms 'B' Rating on INR20MM Term Loan
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of Shree Siddhnath Cotex
Pvt Ltd's bank facilities continue to reflect SSCPL's weak
financial risk profile, working-capital-intensive nature of
operations, and susceptibility to unfavorable changes in the
Government of India's (GoI's) minimum support price (MSP)
mechanism. These weaknesses are partially offset by the benefits
that SSCPL derives from its promoters' experience in the cotton
processing industry.
Facilities Ratings
---------- -------
INR100.0 Million Cash Credit Limit B/Stable (Reaffirmed)
INR20.0 Million Term Loan B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SSCPL will continue to benefit from its
promoters' industry experience and stable growth in its revenues.
The outlook may be revised to 'Positive' if SSCPL's profitability
and consequently cash accruals increase, leading to significant
improvement in its capital structure and debt protection metrics.
Conversely, the outlook may be revised to 'Negative' if adverse
changes in government policy or decline in cotton production
result in deterioration in the company's operating margin.
Update
SSCPL's revenues increased at a strong year-on-year rate of 124
per cent to INR1.15 billion in 2009-10 (refers to financial year,
April 1 to March 31). The growth in sales has primarily been
driven by increase in cotton prices during the year. SSCPL plans
to start exporting cotton in 2010-11 since GoI has lifted the ban
on export of cotton. Although exports are expected to boost
SSCPL's sales growth in 2010-11, it would also increase its
working capital requirements. The company does not have any
capital expenditure planned for 2010-11.
About Shree Siddhnath
Incorporated in 2008, SSCPL is engaged in the business of cotton
ginning and pressing. The promoters traded in cotton before
setting up SSCPL. The company's plant at Surendranagar (Gujarat)
has the capacity to manufacture around 550 bales of cotton per
day.
SSCPL reported a profit after tax (PAT) of INR1.4 million on net
sales of INR1.1 billion for 2009-10, against a PAT of INR1.3
million on net sales of INR512.0 million for 2008-09.
SUMATICHAND GOUTI: CRISIL Reaffirms 'B+' Rating on INR1.4BB Credit
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sumatichand Gouti
Jewellers Pvt Ltd which is part of the Gouti group, continue to
reflect the Gouti group's average financial risk profile marked by
a high total outside liabilities to total net worth (TOL/TNW)
ratio and low interest coverage ratio, and its low profitability
because of intense competition in the gold jewellery business.
These weaknesses are partially offset by the group's prudent risk
management policies, diversified revenue profile, and its
promoters' extensive industry experience.
Facilities Ratings
---------- -------
INR1400.0 Million Cash Credit B+/Stable (Reaffirmed)
INR400.0 Million Proposed Long B+/Stable (Reaffirmed)
Term Bank Loan Facility
INR600.0 Million Gold on Loan P4 (Reaffirmed)
Facility
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SCGJPL and M/s Surajmul Gouti (MSG).
This is because the two entities, together referred to as the
Gouti group, are in the same line of business, and have strong
business linkages and operational and commercial synergies,
arising from having common customers as well as suppliers, though
intra-group transactions are low. Moreover, the entities have
fungible cash flows, and common promoters and management.
Outlook: Stable
CRISIL believes that the Gouti group will continue to post robust
growth on the back of the increase in gold loan limits, while
maintaining stable margins. The group's financial risk profile,
however, would remain average over the medium term, as the
benefits of the expected equity infusion would be offset by higher
working capital needs. The outlook may be revised to 'Positive'
in case of any significant improvement in the group's capital
structure, with higher-than-expected fresh equity infusion.
Conversely, the outlook may be revised to 'Negative' in case of
any pressure on the Gouti group's profitability, or deterioration
in its capital structure.
About Sumatichand Gouti
MSG is a proprietorship concern with Mr. Sumatichand Gouti as
proprietor, and SCGJPL is a private limited company. Both
entities are engaged in the business of gold trading as well as
export of hand-made gold jewellery, with MSG predominantly in
bullion trading and SCGJPL in export of gold jewellery. The
Mumbai office of the group is only engaged in gold trading, while
the Kolkatta office is completely into manufacturing of hand-made
jewellery. The group also has an advertising business, Inter
Publicity Pvt Ltd, which it bought from Mr. Homi Wadia in 1996.
The Gouti group, on a consolidated basis, reported a profit after
tax (PAT) of INR108 million on net sales of INR10.72 billion for
2009-10 (refers to financial year, April 1 to March 31), against a
PAT of INR 7 million on net sales of INR6.48 billion for 2008-09.
SUPREME HEATREATERS: CRISIL Reaffirms 'B' Ratings on Various Debts
------------------------------------------------------------------
CRISIL has revised its rating outlook on the long-term bank
facilities of Supreme Heatreaters Pvt Ltd to 'Stable' from
'Negative', while reaffirming the rating at 'B'; the rating on the
short-term facility has been reaffirmed at 'P4'.
Facilities Ratings
---------- -------
INR15.0 Million Long-Term Loan B/Stable (Reaffirmed; Outlook
Revised from 'Negative')
INR50.0 Million Cash Credit B/Stable (Reaffirmed; Outlook
Revised from 'Negative')
INR43.4 Million Proposed LT B/Stable (Reaffirmed; Outlook
Bank Loan Facility Revised from 'Negative')
INR320.0 Million Letter of P4 (Reaffirmed)
Credit
The revision in outlook is driven by the improved business
performance in 2009-10 (refers to April 1 to March 31) driven by
higher-than-expected margin. The revision reflects CRISIL's
belief that SHPL will maintain its operating margin at the
improved level over the medium term, supported by strong demand
for its electro-slag refined (ESR) special steel products
The ratings continue to reflect SHPL's moderate financial risk
profile marked by small net worth and high gearing, small scale of
operations, and large working capital requirements. These rating
weaknesses are partially offset by SHPL's established track
record, and strong customer relationships in the ball-bearing
steel division.
Outlook: Stable
CRISIL believes that SHPL will continue to benefit from its
established customer relations. The outlook may be revised to
'Positive' if there is an improvement in SHPL's capital structure
or if the company scales up its operations, while maintaining
profitability. Conversely, the outlook may be revised to
'Negative' if there is lesser-than-expected revenue from the
company's new special steels division, leading to deterioration in
its liquidity or debt protection metrics.
About Supreme Heatreaters
Incorporated in 1987, by Mr. Sanjay Chowdhri, SHPL manufactures
ball bearing and stainless steel wires and bars, and high-speed
steel. The company has processing facilities for annealing,
pickling, peeling, and drawing at its unit at Rabale in Navi
Mumbai. The company has processing capacity of about 400 tonnes
per month. The company has also set up a new facility, with
capacity of 250 tonnes per annum at Khopoli (Maharashtra) to
manufacture ESR high-speed bars.
SHPL reported, on provisional basis, a profit after tax (PAT) of
INR16 million on net sales of INR409 million for 2009-10, against
a PAT of INR11 million on net sales of INR343 million for 2008-09.
SURAJMULL GOUTI: CRISIL Reaffirms 'B+' Rating on INR100MM Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of M/s Surajmull Gouti,
which is part of the Gouti group, continue to reflect the Gouti
group's average financial risk profile marked by a high total
outside liabilities to total net worth (TOL/TNW) ratio and low
interest coverage ratio, and its low profitability because of
intense competition in the gold jewellery business. These
weaknesses are partially offset by the group's prudent risk
management policies, diversified revenue profile, and its
promoters' extensive industry experience.
Facilities Ratings
---------- -------
INR100.0 Million Cash Credit B+/Stable (Reaffirmed)
INR50.0 Million Gold On Loan P4 (Reaffirmed)
Facility
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of MSG and Sumatichand Gouti Jewellers Pvt
Ltd. This is because the two entities, together referred to as
the Gouti group, are in the same line of business, and have strong
business linkages and operational and commercial synergies,
arising from having common customers as well as suppliers, though
intra-group transactions are low. Moreover, the entities have
fungible cash flows, and common promoters and management.
Outlook: Stable
CRISIL believes that the Gouti group will continue to post robust
growth on the back of the increase in gold loan limits, while
maintaining stable margins. The group's financial risk profile,
however, would remain average over the medium term, as the
benefits of the expected equity infusion would be offset by higher
working capital needs. The outlook may be revised to 'Positive'
in case of any significant improvement in the group's capital
structure, with higher-than-expected fresh equity infusion.
Conversely, the outlook may be revised to 'Negative' in case of
any pressure on the Gouti group's profitability, or deterioration
in its capital structure.
About Gouti Group
MSG is a proprietorship concern with Mr. Sumatichand Gouti as
proprietor, and SCGJPL is a private limited company. Both
entities are engaged in the business of gold trading as well as
export of hand-made gold jewellery, with MSG predominantly in
bullion trading and SCGJPL in export of gold jewellery. The
Mumbai office of the group is only engaged in gold trading, while
the Kolkatta office is completely into manufacturing of hand-made
jewellery. The group also has an advertising business, Inter
Publicity Pvt Ltd, which it bought from Mr. Homi Wadia in 1996.
The Gouti group, on a consolidated basis, reported a profit after
tax (PAT) of INR108 million on net sales of INR10.72 billion for
2009-10 (refers to financial year, April 1 to March 31), against a
PAT of INR 7 million on net sales of INR 6.48 billion for 2008-09.
TRADE INDIA: CRISIL Assigns 'B-' Rating to INR49.2MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'B-/Stable/P4' ratings to the bank
facilities of Trade India Corporation.
Facilities Ratings
---------- -------
INR49.2 Million Cash Credit B-/Stable (Assigned)
INR10.8 Million Proposed Long B-/Stable (Assigned)
Term Bank Loan Facility
INR5 Million Proposed Short P4 (Assigned)
Term Bank Loan Facility
INR15 Million Bank Guarantee P4 (Assigned)
The ratings reflect TIC's weak financial risk profile, marked by a
small net worth, high gearing, weak debt protection metrics, and
moderate profitability margin, and the company's working-capital-
intensive operations. The weaknesses are partially offset by the
extensive experience of TIC's promoters in the bearings industry.
Outlook: Stable
CRISIL believes that TIC will sustain its moderate business risk
profile over the medium term backed by its promoters' extensive
industry experience. The firm's financial flexibility is,
however, expected to remain constrained by its weak capital
structure and highly working-capital-intensive operations. The
outlook may be revised to 'Positive' if its financial risk profile
improves led by better working capital management and fresh equity
infusion, or better-than-expected cash accruals. Conversely, the
outlook may be revised to 'Negative' if TIC's liquidity
deteriorates due to increasing working capital requirement, or if
its financial risk profile deteriorates, because of lower-than-
expected profitability, revenues, or significant debt-funded
capital expenditure plans.
About Trade India
TIC, a Kolkata-based partnership firm set up in 1968, is an
authorised distributor of bearings of The Timken Company, USA
(Timken). The firm caters to the demand of thermal power plants in
North and East India. It is also an authorised dealer of
Schaeffler Technologies (FAG), Germany. Around 92% of the firm's
revenue comes from trading in Timken's products. TIC has a reputed
customer base of Bharat Heavy Electricals Ltd, NTPC Ltd, and
several state electricity boards. Around 75% of its revenue comes
from BHEL and NTPC. The firm trades in seven to eight varieties
of bearings produced by Timken, including ball, thrust, needle
roller, and tapered roller bearings. Its current partners Mr. S L
Dugar and Mr. J P Goyal, who have around four decades of
experience in the bearings industry, manage the day-to-day
operations of TIC.
TIC's profit after tax (PAT) and net sales are estimated to be
INR0.8 million and INR216.8 million respectively for 2009-10
(refers to financial year, April 1 to March 31); it reported a PAT
of INR0.4 million on net sales of INR157.8 million for 2008-09.
VALLABH TEXTILES: CRISIL Reaffirms 'BB' Rating on INR1.1BB Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Vallabh Textiles
Company Ltd continue to reflect VTCL's weak financial risk profile
marked by weak debt protection metrics, and promoters' limited
experience in the textile industry. The impact of these rating
weaknesses is mitigated by the expectation that VTCL will have
high operating efficiency because of its integrated facility.
Facilities Ratings
---------- -------
INR250.0 Million Cash Credit BB/Stable (Reaffirmed)
INR1107.9 Million Long-Term Loans BB/Stable (Reaffirmed)
INR5.0 Million Bank Guarantees and P4 (Reaffirmed)
Export Performance Guarantees
Outlook: Stable
CRISIL believes VTCL will generate moderate cash accruals, backed
by its flexibility to alter product-mix between yarn and terry
towel depending on demand. VTCL is also likely to receive need-
based support from its group companies Vallabh Steel Ltd and
Vardhman Industries Ltd. The outlook may be revised to 'Positive'
if VTCL significantly improves and sustains its debt protection
metrics. Conversely, the outlook may be revised to 'Negative' if
VTCL reports lower-than-expected capacity utilization or lesser-
than-expected cash accruals.
About Vallabh Textiles
VTCL, incorporated in May 2007, manufactures terry towels and bath
robes. VTCL is part of the Vallabh group, founded by Mr. K K Jain
in 1981. The group, comprising VSL and VIL, produces steel and
steel products. VSL and VIL hold equity stakes of 26 per cent each
in VTCL. VTCL has integrated terry towel/bathrobe units, with
16,416 spindles, and a terry towel unit with capacity of 4,000
tonnes per annum. VTCL's spinning unit commenced commercial
operations in May 2009 and the weaving unit in July 2009.
For 2009-10 (refers to financial year, April 1 to March 31), VTCL
reported a net loss of INR42.3 million on net sales of INR679.8
million.
=================
I N D O N E S I A
=================
GAJAH TUNGGAL: S&P Raises Corporate Credit Rating to 'B'
--------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised the
corporate credit rating on Indonesia-based tire manufacturer PT
Gajah Tunggal Tbk. to 'B' from 'B-'. The outlook is stable. S&P
also raised the issue rating on the senior secured notes issued by
GT2005 Bonds B.V. to 'B' from 'B-'. Gajah Tunggal guarantees
these notes.
"S&P upgraded Gajah Tunggal to reflect the company's rapidly
improving profitability, a trend that is in line with broad
industry cycles. Although Gajah Tunggal's operating performance
and credit protection metrics may weaken over the next six months
to 12 months, in S&P's view, they are likely to remain adequate
for a 'B' rating," said Standard & Poor's credit analyst Wee Khim
Loy.
S&P believes that Gajah Tunggal is unlikely to maintain a gross
margin of more than 20%, a level it achieved in the first half of
2010. This is because raw rubber prices continue to rise. S&P
expects an EBITDA margin of 14%-17% and the ratio of debt to
EBITDA to hover at 2.8x-3.5x in the next six months.
Gajah Tunggal's improved margins are primarily attributable to
significantly better EBITDA margins, given lower raw material
costs--particularly since the second quarter of fiscal 2009--and
stronger demand from its domestic and export markets. The EBITDA
margin for the rolling 12-month period ended Sept. 30, 2010, was
almost 20%, compared with 10.4% for the previous corresponding
period ended June 30, 2009. The volatility in margins reflects
the high risks inherent in the tire industry.
S&P estimate that to meet improved tire demand, Gajah Tunggal's
capital expenditure is likely to increase to about Indonesian
rupiah 550 billion (or US$62 million) for 2010, or 6% of revenue,
and IDR600 billion (US$67 million) for 2011. Given the company's
intensive capex plans, S&P expects Gajah Tunggal's ratio of funds
from operations to debt to moderate to 10%-15%, which S&P believes
is more sustainable. In S&P's view, its free operating cash flow
will remain negative in the next six to 12 months until cash flow
contributions from ramped-up production come onstream.
After the completion of an exchange offer in July 2009, Gajah
Tunggal lengthened its debt maturity profile to 2014 from 2010 and
lowered its interest expenses by half. The company strengthened
its ratio of debt to EBITDA to 2.3x and EBITDA interest cover to
4.3x for the rolling 12-month period ended Sept. 30, 2010. That
compares with a ratio of debt to EBITDA of 5.8x and EBITDA
interest cover of 1.4x in the previous corresponding period ended
June 30, 2009. The company's ratio of FFO to debt held up well,
at almost 40%, due to substantially tighter controls over working
capital and reduced capex. The company cut capex for 2009 to
IDR335.6 billion, or 4% of revenue.
In S&P's view, Gajah Tunggal's liquidity is adequate. Its cash
balance and short-term investments of IDR1.04 trillion at
Sept. 30, 2010, was sufficient compared with short-term debt of
IDR80.9 billion, which is mostly interest payable.
The company's financial flexibility is limited, in S&P's view, as
its back-up liquidity arrangements remain weak. However, given
the improved cash flow generation from higher revenue, S&P expects
Gajah Tunggal to internally fund working capital needs in the next
six to 12 months. In addition, by lengthening its debt maturity
profile to 2014 from 2011, the company has alleviated potential
short-term liquidity pressures.
"The stable outlook reflects S&P's expectation that Gajah
Tunggal's performance over the next six months to 12 months may
weaken from the current level, but S&P believes that the metrics
will be adequate for a 'B' rating. S&P may raise the rating if
Gajah Tunggal's operating performance to leverage metrics decline-
-in particular, if its ratio of debt to EBITDA falls below 3x on a
sustainable basis. While unexpected, leverage above 4x or
materially weaker liquidity could lead us to revise the outlook to
stable," said Ms. Loy.
GARUDA INDONESIA: Recorded Profit Not Loss; IPO Remains on Track
----------------------------------------------------------------
The Jakarta Globe reports that the State Enterprises Ministry said
on Tuesday that Garuda Indonesia's plan to go public was back on
track for February, after the ministry corrected financial results
showing a loss rather than the actual profit for the airline,
which had thrown the share sale into doubt.
Sumaryanto, the ministry's deputy for infrastructure and
logistics, said the data presented on November 5, which had shown
a IDR39.5 billion loss for the period of January through
September, had been incorrect.
"My department had not shown that data to anyone because it was
still unaudited. I don't know who released the report. The
correct, audited data is that Garuda recorded a profit of
IDR194 billion," the Globe quoted Sumaryanto as saying.
Sahala Lumban Gaol, a member of Garuda's board of commissioners,
said last week that Garuda Indonesia suffered IDR39.51 billion in
losses in the third quarter of this year as it focused on
developing flight routes, according to ANTARA News.
The Globe relates Sumaryanto declined to elaborate on why the
false report had been released, saying only that the correct data
had been verified by global accounting firm Deloitte and finalized
on Tuesday.
State Enterprises Minister Mustafa Abubakar gave reassurances that
the long-awaited IPO would proceed according to plan, the Globe
adds.
The Troubled Company Reporter-Asia Pacific reported on Aug. 11,
2010, that Garuda Indonesia had completed the restructuring of
US$76 million of debts to state oil and gas company PT Pertamina,
in the airline's latest move to help ease its debt burden.
Garuda has also completed a debt restructuring negotiation with
its biggest creditor, the state lender Bank Mandiri.
Garuda received IDR1 trillion from the government in 2006 to help
it keep flying and has been negotiating with bondholders since
2007 over notes that weren't redeemed, according to Bloomberg
News.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
LIPPO KARAWACI: Consent Solicitation Won't Affect Fitch's Rating
----------------------------------------------------------------
Fitch Ratings has said that the bondholder consent solicitation
process launched by PT Lippo Karawaci Tbk. for the US$270.6m notes
due 2015 issued by Sigma Capital Pte. Ltd. and guaranteed by LK,
does not immediately affect the notes' issue rating of 'B+', or
its 'B+' Issuer Default Rating with Stable Outlook.
The key amendment proposed by the company is to allow it the
ability to invest up to US$375m in permitted business lines from
proceeds of right issues and/or any other equity issuance prior to
30 November 2011. Besides that, LK will also be able to use any
unutilized portion of the proceeds to pay dividends of up to
US$15m per annum. However, the ratings impact of these amendments
can only be assessed once there is greater clarity on LK's future
equity raising and investment plans. Fitch takes comfort from the
fact that any new investments will be entirely equity funded and
in its core businesses.
LK's ratings are supported by its position as one of Indonesia's
leading property developers with a diversified revenue base,
comfortable liquidity position, and significant cash flow from
recurring business (51.3% of total revenue for the first nine
months of 2010).
=========
J A P A N
=========
AIFUL CORP: Books JPY3.4BB Net Income in Six Months Ended Sept. 30
------------------------------------------------------------------
Bloomberg News reports that Aiful Corp. swung to a profit on
higher loan interest income in the six months ended Sept. 30,
2010.
Bloomberg notes Aiful posted net income of JPY3.4 billion for the
six months ended Sept. 30, compared with its earlier forecast of a
JPY3.2 billion loss, according to a preliminary earnings statement
released October 8. The increase in interest income exceeded
expectations, it said, according to Bloomberg. Operating expenses
dropped by about JPY3 billion as bad-loan costs fell, the report
adds.
According to Bloomberg, the consumer lender retracted its previous
full-year earnings projection amid "uncertain elements" that may
affect its business. Aiful had previously forecast net income of
JPY2.82 billion for the year ending March 31, Bloomberg says.
Aiful, which unlike bigger rivals Promise Co. and Acom Co. isn't
backed by a major bank, avoided bankruptcy last December when it
reached an agreement with creditors to defer loan repayments,
Bloomberg notes.
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.
* * *
Aiful Corp. carries Moody's Investor Service's 'Caa1' issuer,
long-term and unsecured debt ratings.
J-CORE15 TRUST: Fitch Downgrades Ratings on Five Classes
--------------------------------------------------------
Fitch Ratings has downgraded five classes of trust beneficiary
interests or asset-backed loans of J-CORE15 Trust due July 2013,
and affirmed four classes of TBIs/ABLs. The agency has
simultaneously removed all classes from Rating Watch Negative.
The transaction is a Japanese single-borrower type CMBS
securitization. The rating actions are:
-- JPY6.7bn* Class A1 TBIs affirmed at 'AAAsf'; off RWN; Outlook
Negative;
-- JPY14.6bn* Class A1 ABL affirmed at 'AAAsf'; off RWN; Outlook
Negative;
-- JPY14.7bn* Class A2 TBIs downgraded to 'BBBsf' from 'AAsf';
off RWN; Outlook Negative;
-- JPY1.0bn* Class A2 ABL downgraded to 'BBBsf' from 'AAsf'; off
RWN; Outlook Negative;
-- JPY8.0bn* Class B TBIs downgraded to 'BBsf' from 'BBBsf'; off
RWN; Outlook Negative;
-- JPY6.6bn* Class D ABL downgraded to 'CCCsf' from 'Bsf'; off
RWN; assigned a Recovery Rating of 'RR6';
-- JPY3.0bn* Class E TBIs downgraded to 'CCCsf' from 'B-sf'; off
RWN; assigned a Recovery Rating of 'RR6';
-- JPY1.4.bn* Class F TBIs affirmed at 'CCCsf'; off RWN;
Recovery Rating revised to 'RR6' from 'RR5'; and
-- JPY4.0bn* Class F ABL affirmed at 'CCCsf'; off RWN; Recovery
Rating revised to 'RR6' from 'RR5'.
* as of November 5, 2010
Fitch downgraded classes A2 to E to reflect its review of the
potential recovery amounts from the underlying Tokutei Mokuteki
Kaisha specified bond (TMK bond). Also, the agency affirmed the
ratings of the class A1 TBIs/ABLs given the fairly low loan to
value ratio.
Actions to evacuate tenants of the sole collateral property
backing the TMK bond are proceeding. Fitch has assumed that the
property will be leased to new tenants, and has revised downwards
its cash flow expectations of the underlying property, reflecting
recent market conditions for offices in central Tokyo. As a
result, for the purpose of this review, the agency has adopted a
value for the underlying property that is 65% lower than the
initial value.
Separately, Fitch has received information that some potential
investors are considering purchasing the property with the aim of
redeveloping the site and constructing a building with higher
efficiency. Therefore, Fitch has estimated a second property
value - as a vacant building - a "redevelopment value" assumption
that is 52% lower than the initial value, for the purpose of this
review. The ratings on classes A2 through B are comprehensively
determined to reflect both the value assumptions.
Fitch has resolved the RWN status on all classes on noting that
additional negative events are not likely to occur in the near-
term taking into account that the reserves are expected to cover
interest payments on the TMK Bond until its legal final maturity
date in March 2012.
The agency has assigned Negative Outlooks to classes A1, A2, and B
TBIs/ABL due to the high level of uncertainty surrounding the
speed as well as the outcome of the collateral sale process by the
transaction parties.
Fitch assigned initial ratings to the TBIs and ABLs from this
transaction in July 2008. The transaction is a securitization of
a TMK bond purchased by Deutsche Bank AG, Tokyo branch. The bond
is backed by a Class A office building - the Shinsei Bank Head
Office Building - located in Chiyoda-ku, Tokyo.
TAKEFUJI CORP: Shinsei to Advise on Bankruptcy Sponsor Selection
----------------------------------------------------------------
Tak Kumakura at Bloomberg News, citing the Sankei newspaper,
reports that Shinsei Bank Ltd. agreed to advise Takefuji Corp. on
the selection of its bankruptcy sponsor.
Bloomberg relates the newspaper said that about 20 companies are
seeking to sponsor Takefuji.
Takefuji Corp. filed a bankruptcy petition with the Tokyo
District Court on September 28, 2010, with debts of
JPY433.6 billion. Bloomberg News said the company has become the
biggest casualty of Japan's four-year crackdown on coercive
lending practices by consumer finance companies. The lender is
seeking to restructure as borrower claims of overpaid interest are
estimated to exceed JPY1 trillion.
About Takefuji
Takefuji Corporation (TYO:8564) -- http://www.takefuji.co.jp/--
is a Japan-based company mainly engaged in the consumer finance
business. The Company operates in two business segments. The
Consumer Finance segment covers the loan and credit card
businesses. The Others segment is involved in the operation of
golf courses, the development, management and leasing of real
estate, the venture capital business, as well as the investment
business, among others. The Company has eight subsidiaries.
* JAPAN: Corporate Bankruptcies Down 9.91% in October 2010
----------------------------------------------------------
Kyodo News reports that Tokyo Shoko Research said the number of
corporate bankruptcies in Japan declined 9.91% in October 2010
from a year earlier to 1,136, dropping year-on-year for the 15th
consecutive month.
The credit research firm said debts left behind by the failed
firms leapt 79.11% to JPY520.05 billion as there were three major
bankruptcies involving debts of more than JPY50 billion, pushing
up the overall figure for October, Kyodo News relates.
Kyodo News notes that of the 10 industries surveyed, corporate
failures decreased in seven sectors while more companies went
bankrupt than in the previous year in the transportation service
and real estate industries. The figure for the agriculture,
forestry, fisheries and mining sector remained unchanged, Kyodo
News adds.
=========
K O R E A
=========
KUMHO ASIANA: Creditors May Infuse Cash to Tire Unit This Month
---------------------------------------------------------------
Kumho Tire Co. may reach a deal with creditors on new cash
injections and debt restructuring by the end of the month,
Bloomberg News reports citing Min Euoo Sung, chief executive of
Korea Development Bank.
Min told Bloomberg News that Kumho Tire, a unit of Kumho Asiana
Group, has already reached an agreement to convert debt to equity.
KDB is Kumho Tire's main creditor.
"The debt-equity conversion has been decided, and we're working on
some additional cash and debt restructuring," Bloomberg quoted Min
as saying. "We expect an agreement concluded by the end of
November."
Bloomberg, citing Yonhap News, says KDB is seeking agreement from
other financial investors for potential plans to inject an
additional KRW100 billion and to delay repayment of KRW140 billion
in maturing loans by 2014.
As reported in the Troubled Company Reporter-Asia Pacific on
August 6, 2009, The Korea Herald said Kumho Asiana Group has been
suffering from a liquidity crisis, which observers describe as a
typical case of acquisition indigestion. In a bid to ease a cash
shortage, the conglomerate in July 2009 decided to re-sell the
controlling stakes and management rights of Daewoo Engineering,
after acquiring it in 2006 for KRW6.4 trillion. The creditors
decided on December 30, 2009, to put two other ailing units
-- Kumho Industrial Co. and Kumho Tire Co. -- under a debt
rescheduling program. Meanwhile, the group's other two units --
Korea Kumho Petrochemical Co. and Asiana Airlines Inc. -- will
have to improve their financial health through rigorous self-
restructuring efforts as earlier agreed with creditors.
Kumho Asiana unveiled a restructuring plan on January 5 that
involves raising KRW1.3 trillion (US$1.1 billion) by selling off
assets, while cutting costs via a 20% reduction in executive
positions and wages, Yonhap News Agency reported.
Kumho Tire Co. Ltd. manufactures tire. The company's offerings
include tires for sports utility vehicles, passenger cars, various
sizes of trucks and buses and racing cars. In addition, the
company provides batteries for automobiles. The company is part
of the Kumho Asiana Group.
About Kumho Asiana
Established in 1946, Kumho Asiana Group is a large South Korean
conglomerate, with subsidiaries in the automotive, industry,
leisure, logistic, chemical and airline fields. The group is
headquartered at the Kumho Asiana Main Tower in Sinmunno 1-ga,
Jongno-gu, Seoul, South Korea.
====================
N E W Z E A L A N D
====================
EDZELL VINEYARDS: Property in Awatere Valley Put Up for Sale
------------------------------------------------------------
Last month Edzell Vineyards, a 143ha property in Marlborough's
Awatere Valley, with a supply contract to Pernod Ricard -- this
country's largest wine company -- was put up for sale by its
receivers, Business Day reports.
As reported in the Troubled Company Reporter-Asia Pacific on
October 13, 2010, The Marlborough Express said that Edzell
Vineyards has been put into receivership. Westpac Bank put the
company under the management of Auckland chartered accountants
William Black and Andrew Grenfell, of McGrathNicol, on
September 20, the report said.
Edzell Vineyards is a grape grower in the Awatere Valley. The
company has 140 hectares of land in Marlborough's southern valley,
with 80ha planted with sauvignon blanc. The four-year-old company
is owned by five investors from around New Zealand.
MACPHERSON MARINE: Ex-Director Pleads Guilty on Fraud Charges
-------------------------------------------------------------
Jeeni McManus at BusinessDay.co.nz reports that MacPherson Marine
Ltd. former managing director Peter Edward Hynes has admitted 40
fraud charges totaling NZ$1.6 million.
Mr. Hynes fled New Zealand in mid-2006, shortly before MacPherson
Marine was placed in liquidation, the report recounts.
According to BusinessDay.co.nz, the Serious Fraud Office began
investigating in November 2006 and charges were laid in the
Christchurch District Court in May 2008.
BusinessDay.co.nz relates that Mr. Hynes was located in Queensland
in July this year and extradited from Australia to face the
charges. He pleaded guilty and has been remanded on bail.
BusinessDay.co.nz says the charges against Mr. Hynes relate mainly
to false representations he made to obtain and retain credit from
GE Commercial Finance, which provided funding to MacPherson
Mariner on new boats and motors from the time the company acquired
the merchandise from the manufacturer to the time it was sold to a
customer.
Mr. Hynes also submitted false loan documentation to Marac Finance
and stole further funds paid to MacPherson Marine by customers as
payment for boats and motors, BusinessDay.co.nz notes.
The report relates most of the stolen money was used to repay
MacPherson's growing debt to GE, the court was told.
MacPherson Marine Ltd was a New Zealand-based boat dealer.
=================
S I N G A P O R E
=================
PACNET LIMITED: Fitch Assigns 'BB+' Rating to Senior Notes
----------------------------------------------------------
Fitch Ratings has assigned a final 'BB+' rating and a 'RR1'
recovery rating to the US$300m 9.25% Senior Secured Guaranteed
Notes due November 2015 issued by Pacnet Limited ('B+'/Stable).
This follows the receipt of documents conforming to information
already received. The final rating is in line with the expected
rating of the issue assigned on October 20, 2010.
*********
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 ***