/raid1/www/Hosts/bankrupt/TCRAP_Public/101112.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
Friday, November 12, 2010, Vol. 13, No. 224
Headlines
A U S T R A L I A
ONE.TEL LTD: Access to Litigation Funder's Info Denied
C H I N A
YUZHOU PROPERTIES: Moody's Assigns 'B1' Corporate Family Rating
YUZHOU PROPERTIES: S&P Assigns 'B+' Corporate Credit Rating
H O N G K O N G
ABERDEEN INT'L: Members' Final Meeting Set for December 13
CHINA NAM: Zhong Baoguo Steps Down as Liquidator
CROWN INDUSTRIAL: Members' Final Meeting Set for December 1
DRAGON JOYCE: Creditors' Proofs of Debt Due December 15
E & J GALLO: Ying and Chan Step Down as Liquidators
ECM LIBRA: Wong Poh Weng and Wong Tak Man Step Down as Liquidators
ELITE CITY: Creditors' Proofs of Debt Due December 15
EXPERT WHEEL: Members' Final Meeting Set for December 13
FANUC HK: Lam and Boswell Step Down as Liquidators
FAST MOMENT: Commences Wind-Up Proceedings
HERMES INDUSTRIAL: Members' Final Meeting Set for December 6
HKRB OPERATIONS: Kong Chi How Johnson Steps Down as Liquidator
HUEY AN: Commences Wind-Up Proceedings
INTERBEST PROPERTIES: Creditors' Proofs of Debt Due December 8
MEI & HIM: Members' Final Meeting Set for December 6
MF ASSET: Commences Wind-Up Proceedings
MF SECURITIES: Commences Wind-Up Proceedings
MRO SOFTWARE: Members' Final General Meeting Set for December 10
RC TRADING: Creditors' Proofs of Debt Due December 6
ROBOSHOP INTERNATIONAL: Yiu Cho Yan Appointed as Liquidator
ROBOTOOLZ LIMITED: Wong and Chen Step Down as Liquidators
SABIC HK: Creditors' Proofs of Debt Due December 6
TEAMRICH LIMITED: Shum Lap Chi Steps Down as Liquidator
TRINITY HOLISTIC: Shum Lap Chi Steps Down as Liquidator
I N D I A
ALUTOP: CRISIL Upgrades Rating on INR23.1MM LT Loan to 'BB-'
AMRUT COTTON: CRISIL Reaffirms 'B-' Rating on INR3.8MM LT Loan
AMURTHA TEXTILES: CRISIL Assigns 'C' Rating to INR66.5MM LT Loan
AP REFINERY: CRISIL Reaffirms 'BB' Rating on INR97.3MM Term Loan
APEX AUTO: CRISIL Lifts Rating on INR565MM Term Loan to 'BB'
BHARAT SHIP: ICRA Places 'LBB' Rating on INR3cr Cash Credit
FACT SOFTWARE: CARE Revises Rating on INR70.35cr Loan to 'CARE D'
FORWARD SHOES: ICRA Places 'LBB' Rating on INR16.75cr Bank Debts
GOYAL HOSPITAL: CRISIL Assigns 'BB' Rating to INR93MM Term Loan
GURU AASHISH: ICRA Assigns 'LBB' Rating to INR29.45cr Debts
HARRISONS MALAYALAM: ICRA Ups Rating on INR56.2cr Loans to 'LBB+'
HOTEL VAIGAI: CRISIL Places 'D' Rating on INR211 Million LT Loan
KEERTHI INDUSTRIES: CARE Revises Ratings on INR73.9cr LT Loans
KINGFISHER AIRLINES: Wins Lender Support to Restructure Debt
OVIS EQUIPMENTS: ICRA Assigns 'LBB+' Rating to INR5.6cr Debts
RAMSARUP INDUSTRIES: CARE Revises Rating on Bank Loans to 'CARE B'
SRI INDRA SOLVENT: ICRA Assigns 'LB+' Rating to INR7 Crore Debts
STEEL PRODUCTS: CRISIL Assigns 'D' Rating to INR19.8MM Term Loan
J A P A N
JAPAN AIRLINES: Files Lawsuit Against Shizuoka Government
JAPAN AIRLINES: Kyocera & Daiwa Securities to Invest JPY20 Billion
ORIX-NRL TRUST: S&P Downgrades Ratings on Various Certificates
* S&P Puts Ratings on Five Japanese CDOs on CreditWatch Positive
M A L A Y S I A
AYER MOLEK: Required to Submit Regularization Plan by Nov. 18
HO HUP CONSTRUCTION: Inks Share Sale Deal With Plenitude Frontier
LIMAHSOON BERHAD: Sha Thiam Fook Appointed as Receiver
LUSTER INDUSTRIES: Has Until Feb. 28 to Submit Regularization Plan
OILCORP BERHAD: Obtains Restraining Order Against Bursa
N E W Z E A L A N D
CRAFAR FARMS: IRD Refuses to Give GST Refunds to Chinese Buyer
P H I L I P P I N E S
LEGACY GROUP: PDIC Pays PHP11 Billion in Legacy Claims
LEGACY GROUP: Forensic Experts Confirm Siphoning of Funds
PHILIPPINE AIRLINES: Union Ready to Launch Strike Next Week
PHILIPPINE AIRLINES: More Than Willing to Disclose Financial Books
T A I W A N
KING'S TOWN: Fitch Gives Positive Outlook; Affirms 'BB+' Rating
X X X X X X X X
* Large Companies With Insolvent Balance Sheets
- - - - -
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A U S T R A L I A
=================
ONE.TEL LTD: Access to Litigation Funder's Info Denied
------------------------------------------------------
News Ltd and Publishing and Broadcasting Ltd have failed in an
attempt to uncover details of the litigation funding secured by
One.Tel Ltd's special purpose liquidator for a AU$244 million
compensation suit in the NSW Supreme Court, The Sydney Morning
Herald reports.
According to the report, Justice Reg Barrett ruled on November 5
that disclosing the amount of funding and funder's identity would
deliver a tactical advantage to the defendants in the dispute over
the abandonment of a AU$132 million rights issue on the eve of
One.Tel's 2001 collapse.
SMH relates Judge Barrett said that giving News and PBL the name
of the funder "would carry with it the potential of distortion in
the form of direct approaches to the funder with a view to
influencing the funder's conduct in the performance of the
[funding] agreements."
As to the amount of funding, SMH says, the judge quoted from a
decision in an unrelated Federal Court case which said such
knowledge "may enable the proposed defendants to assess and
implement the extent to which they could, by way of interlocutory
processes, eat up the liquidator's funding before the conclusion
of the trial."
SMH states that Justice Barrett agreed November 8, at the request
of PBL, to revisit the issue of whether the defence could have
access to information about how the liquidator, Paul Weston,
negotiated the funding.
According to SMH, PBL's barrister, Tom Bathurst, QC, said the
history of the negotiations was "not something which would confer
a tactical advantage" but was "critical" to an attempt to prove
the court should not have granted Mr. Weston repeated extensions
to the deadline for serving his claim.
In applying for extensions, SMH relates, Mr. Weston gave evidence
in confidential affidavits of needing more time to obtain funding.
A challenge to the validity of the extensions is set for February,
SMH adds.
The Troubled Company Reporter-Asia Pacific, citing the Herald Sun,
reported on November 24, 2009, that the fight arises out of
One.Tel's aborted AU$132 million rights issue in 2001, which was
to be backed by Packer's Publishing and Broadcasting Limited and
Murdoch's News Ltd. PBL and News, which lost a combined AU$1
billion when One.Tel collapsed, withdrew their underwriting on the
grounds that it was not enough to cover the telco's debts.
About One.Tel
One.Tel Limited is an Australian based telecommunications company,
belonging to One.Tel Group. One.Tel Ltd. was established in 1995
soon after the deregulation of the Australian telecommunications
industry, most of which are currently under external
administration by court appointed liquidators.
One.Tel is currently in liquidation due to financial problems.
Ferrier Hodgson was appointed as voluntary administrator on
May 29, 2001. The administrator's report stated that the company
was insolvent as of March 2001. Accordingly, the administrator
terminated approximately 3,000 employees in June that same year.
Steve Sherman and Peter Walker of Ferrier Hodgson were then
named liquidators on July 24, 2001.
=========
C H I N A
=========
YUZHOU PROPERTIES: Moody's Assigns 'B1' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a first time B1 corporate
family rating to Yuzhou Properties Company Limited.
Moody's has also assigned a provisional (P)B2 rating to its
proposed US$ senior unsecured bond issues. The ratings outlook
for the rating is stable.
Proceeds from the proposed bonds will be used to fund Yuzhou's
land acquisitions and working capital requirements, and to repay
certain of its existing loans.
The provisional rating status of the bond rating will be removed
after Yuzhou has completed the issuance based on satisfactory
terms and pricing.
Ratings Rationale
"Yuzhou's B1 corporate family rating reflects the high execution
and financial risk arising from its rapid growth plan, as well as
the company's short operating history in a highly volatile Chinese
property market," says Kaven Tsang, a Moody's AVP/Analyst.
"The B1 rating also takes into account Yuzhou's small operating
scale, which translates into high geographic and cash flow
concentration in a few projects, mainly in Xiamen," continues
Tsang, also Moody's lead analyst for Yuzhou.
Partly mitigating these challenges is Yuzhou's leading market
position and quality land bank in Xiamen, which support sales
stability to some extent. Also, given the low level of
speculative demand at its major markets, the company should be
less affected by further policy tightening in the sector.
Additionally, Yuzhou's low-cost land bank and decent profit margin
will allow it some flexibility to adjust prices without material
impairment to its profit margin in the event of a market slowdown.
As Yuzhou will fund a portion of its future growth with debt, its
adjusted debt/capitalization ratio will rise to around 50-55% in
the coming one to two years, from 41.5% at June 2010. Projected
EBITDA interest coverage will stay at 4-5x -- which is modest for
the B1 rating -- for the next two to three years.
Yuzhou has banking facilities at several major banks in China.
However, the company still needs to extend its onshore/offshore
banking relationships and diversify its funding access to enhance
its financial flexibility if it is to more effectively mitigate
the policy risks in China's much regulated bank market.
Yuzhou's bond rating is notched down to B2, reflecting the risk of
structural and legal subordination. The ratio of secured and
subsidiary debt to total assets was at around 21.3% as of June
2010, and will remain in the 15-20% range for the next two to
three years, as the company will continue to draw on onshore bank
loans to fund its construction work.
The stable outlook reflects Moody's expectation that Yuzhou will
achieve moderate business growth at a stable profit margin and
maintain access to onshore bank funding for its construction work.
Yuzhou's ratings could be upgraded in the medium term if it can 1)
establish a track record of achieving its planned sales growth
with stable profit margins; 2) generates sale from a well-balanced
portfolio without concentration risk; 3) achieve a stable
financial profile without aggressive land acquisitions; or 4)
strengthen its liquidity with broadened banking relationships and
free cash supporting its scale of operations.
The credit metrics Moody's would look for are adjusted
debt/capitalization falls under 45-50% and EBITDA/interest
coverage rises above 5x.
The ratings could be downgraded if Yuzhou's financial position
deteriorates, due 1) weaker than expected sales performance; 2)
aggressive development or land acquisitions; or 3) weakened
liquidity, such that it could not support its operations.
The credit metrics that Moody's would consider for a rating
downgrade include adjusted debt/capitalization rising beyond 55-
60% and EBITDA/interest coverage falling under 2-3x.
Yuzhou Properties Company Limited is a Fujian-based developer that
focuses on residential housing in Xiamen. It has a small and
concentrated land bank (with land titles) of around 4.9 million
square meters in gross floor area located in Xiamen, Fuzhou,
Hefei, and Shanghai. Xiamen comprises around 50-55% of the land
bank.
YUZHOU PROPERTIES: S&P Assigns 'B+' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'B+' long-term corporate credit rating to Xiamen-based property
developer Yuzhou Properties Co. Ltd. The outlook is stable. At
the same time, Standard & Poor's assigned its 'B' issue rating to
the company's proposed issue of senior unsecured notes. The
rating on the notes is subject to S&P's review of the final
issuance documentation. The company will use the proceeds from
the proposed notes to fund its land acquisitions and repay certain
existing loans, and for general corporate purposes.
"The rating on Yuzhou reflects the company's geographic and
project concentration, its limited scale, and execution risks
associated with its expansion outside of its home base of Xiamen
city. In addition, Yuzhou is exposed to the cyclical and
competitive nature of China's real estate market with evolving
regulations. These weaknesses are tempered by the company's
leading market position in Xiamen in terms of sales and brand; its
low-cost land bank, which should be sufficient for the next four
to five years; and its above-average profitability," said Standard
& Poor's credit analyst Frank Lu.
S&P believes Yuzhou's geographic and project concentration, which
constrains its financial flexibility, is likely to remain a risk
for at least the next two years. About 76.5% of the company's
land bank, or reserves, is in three cities in Fujian province,
including 34.4% in Xiamen and 36% in a single project in Quanzhou.
In 2009 and the first half of 2010, revenue came mainly from four
projects and the largest single project contributed more than 30%
of total revenue. Yuzhou's expansion outside Fujian province
should start to alleviate the concentration risk.
Yushou's profitability may be lower in new markets than in Xiamen
due to higher execution risk and larger development costs,
including land costs. Although the company has already entered
Shanghai, Hefei and Fuzhou, and properties sales have been
satisfactory, its scale and market positions in these cities are
still limited. In Fujian province, the developer's brand equity
in Xiamen tempers these risks. In Xiamen, the company has a 15-
year track record and a market share of 7.7% by gross floor area
sold in 2009. In addition, Yuzhou has a clear and consistent
positioning strategy in the city, with a good level of recurring
customers.
S&P believes Yuzhou's low land costs are likely to support its
above-average profitability, compared with similarly rated peers',
in the next two to three years. Yuzhou has maintained its land
costs at less than 20% of its average selling price over the past
five years.
The issue rating on Yuzhou's proposed notes is one notch lower
than the corporate credit rating to reflect S&P's opinion that
offshore noteholders would be materially disadvantaged, compared
with onshore creditors, in the event of default. In S&P's view,
the company's ratio of priority borrowings to total assets will
remain above S&P's notching threshold of 15% for speculative-
grade-rated debt.
Yuzhou's liquidity is adequate, in S&P's view. The company had
unrestricted cash and cash equivalents of Chinese renminbi
RMB673.2 million at the end of June 2010 against short-term debt
of RMB743.5 million. Yuzhou's liquidity is sensitive to property
sales due to its relatively large outstanding land premiums
totaling RMB2.35 billion due before the end of 2011 and growing
construction spending on expansion. Yuzhou achieved contract
sales of RMB2.75 billion from July to October 2010. Yuzhou has
undrawn uncommitted bank credit line of about RMB3 billion in
China.
If successfully executed, the proceeds from the proposed senior
unsecured note issuance should further support the company's
liquidity position.
"The stable outlook reflects S&P's expectation that Yuzhou will
adopt a disciplined growth strategy and maintain above-average
profit margins as it expands outside of Xiamen," said Mr. Lu.
================
H O N G K O N G
================
ABERDEEN INT'L: Members' Final Meeting Set for December 13
----------------------------------------------------------
Members of Aberdeen International Investment Management Limited
will hold their final general meeting on December 13, 2010, at
10:00 a.m., at 7th Floor, Alexandra House, 18 Chater Road,
Central, in Hong Kong.
At the meeting, Philip Brenda Gilligan, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
CHINA NAM: Zhong Baoguo Steps Down as Liquidator
------------------------------------------------
Zhong Baoguo stepped down as liquidator of China Nam Hoi Trading
Limited on October 27, 2010.
CROWN INDUSTRIAL: Members' Final Meeting Set for December 1
-----------------------------------------------------------
Members of Crown Industrial Resources Limited will hold their
final meeting on December 1, 2010, at 11:00 a.m., at Rooms 1801-
05, Hua Qin International Building, 340 Queen's Road Central, in
Hong Kong.
At the meeting, Guan Haishan, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
DRAGON JOYCE: Creditors' Proofs of Debt Due December 15
-------------------------------------------------------
Creditors of Dragon Joyce Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Dec. 15,
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:
Andrew C. C. Ma
Felix K. L. Lee
19th Floor, Seaview Commercial Building
21-24 Connaught Road West
Hong Kong
E & J GALLO: Ying and Chan Step Down as Liquidators
---------------------------------------------------
Mr. Ying Hing Chiu and Ms. Chan Mi Har stepped down as liquidators
of E. & J. Gallo Hong Kong Limited on October 27, 2010.
ECM LIBRA: Wong Poh Weng and Wong Tak Man Step Down as Liquidators
------------------------------------------------------------------
Wong Poh Weng and Wong Tak Man Stephen stepped down as liquidators
of ECM Libra Securities Limited on October 28, 2010.
ELITE CITY: Creditors' Proofs of Debt Due December 15
-----------------------------------------------------
Creditors of Elite City Engineering Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by December 15, 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:
Andrew C. C. Ma
Felix K. L. Lee
19th Floor, Seaview Commercial Building
21-24 Connaught Road West
Hong Kong
EXPERT WHEEL: Members' Final Meeting Set for December 13
--------------------------------------------------------
Members of Expert Wheel Limited will hold their final meeting on
December 13, 2010, at 3:00 p.m., at Suite No. A, 11th Floor, Ritz
Plaza, 122 Austin Road, Tsimshatsui, Kowloon, in Hong Kong.
At the meeting, Sung Mi Yin, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
FANUC HK: Lam and Boswell Step Down as Liquidators
--------------------------------------------------
Rainier Hok Chung Lam and Anthony David Kenneth Boswell stepped
down as liquidators of Fanuc Hong Kong Limited on October 22,
2010.
FAST MOMENT: Commences Wind-Up Proceedings
------------------------------------------
Members of Fast Moment Limited, on October 28, 2010, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Kennic Lai Hang Lui
Yuen Tsz Chun Frank
5th Floor, Ho Lee Commercial Building
38-44 D'Aguilar Street
Central, Hong Kong
HERMES INDUSTRIAL: Members' Final Meeting Set for December 6
------------------------------------------------------------
Members of Hermes Industrial (Hong Kong) Limited will hold their
final general meeting on December 6, 2010, at 10:00 a.m., at Rooms
9/F., surson commercial Building, 140-142 Austin Road,
Tsimshatsui, in Kowloon.
At the meeting, Luk Wing Hay, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
HKRB OPERATIONS: Kong Chi How Johnson Steps Down as Liquidator
--------------------------------------------------------------
Kong Chi How Johnson stepped down as liquidator of HKRB Operations
Limited (F.K.A. Cable & Wireless Regional Business (Hong Kong)
Limited) on October 26, 2010.
HUEY AN: Commences Wind-Up Proceedings
--------------------------------------
Members of Huey An Rice (H.K.) Co. Limited, on October 27, 2010,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Cheng Hok Cheung
Room 1406, 14/F
King Centre
23 Dundas Street
Mongkok, Kowloon
Hong Kong
INTERBEST PROPERTIES: Creditors' Proofs of Debt Due December 8
--------------------------------------------------------------
Creditors of Interbest Properties Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by December 8, 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:
Mr. Leung Shu Yin William
Miss Kam Yuk Ting
Rooms 903-908, 9/F
Kai Tak Commercial Building
317-319 Des Voeux Road
Central, Hong Hong
MEI & HIM: Members' Final Meeting Set for December 6
----------------------------------------------------
Members of Mei & Him Limited will hold their final general meeting
on December 6, 2010, at 10:00 a.m., at its registered office.
At the meeting, Wong Chun Fai, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
MF ASSET: Commences Wind-Up Proceedings
---------------------------------------
Members of MF Asset Management Hong Kong Limited, on October 27,
2010, passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Stephen Briscoe
Wong Teck Meng
602 The Chinese Bank Building
61-65 Des Voeux Road
Central, Hong Kong
MF SECURITIES: Commences Wind-Up Proceedings
--------------------------------------------
Members of MF Securities Hong Kong Limited, on October 27, 2010,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Stephen Briscoe
Wong Teck Meng
602 The Chinese Bank Building
61-65 Des Voeux Road
Central, Hong Kong
MRO SOFTWARE: Members' Final General Meeting Set for December 10
----------------------------------------------------------------
Members of MRO Software Hong Kong Limited will hold their final
general meeting on December 10, 2010, at 10:00 a.m., at 6-8 & 10-
13/F., PCCW Tower, Taikoo Place, 979 King's Road, quarry Bay, in
Hong Kong.
At the meeting, Chan Wah Tip Michael and Ho Man Kei Keith, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
RC TRADING: Creditors' Proofs of Debt Due December 6
----------------------------------------------------
Creditors of RC Trading Education Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by December 6, 2010, to be included in the company's dividend
distribution.
The company's liquidator is:
Cheung Wing On Rickey
7B Fu Wai Court
Fortress Garden
32 fortress Hill Road
Hong Kong
ROBOSHOP INTERNATIONAL: Yiu Cho Yan Appointed as Liquidator
-----------------------------------------------------------
Yiu Cho Yan on November 1, 2010, was appointed as liquidator of
Roboshop International Limited.
The liquidator may be reached at:
Yiu Cho Yan
Room 1702, 17/F
Asian House, 1 Hennessy Road
Wanchai, Hong Kong
ROBOTOOLZ LIMITED: Wong and Chen Step Down as Liquidators
---------------------------------------------------------
Wong Tak Man Stephen and Chen Yung Ngai Kenneth stepped down as
liquidators of Robotoolz Limited on October 26, 2010.
SABIC HK: Creditors' Proofs of Debt Due December 6
--------------------------------------------------
Creditors of Sabic Hong Kong Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by December 6, 2010, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on October 29, 2010.
The company's liquidators are:
Seng Sze Ka Mee Natalia
Cheng Pik Yuk
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
TEAMRICH LIMITED: Shum Lap Chi Steps Down as Liquidator
-------------------------------------------------------
Shum Lap Chi stepped down as liquidator of Teamrich Limited on
October 29, 2010.
TRINITY HOLISTIC: Shum Lap Chi Steps Down as Liquidator
-------------------------------------------------------
Shum Lap Chi stepped down as liquidator of Trinity Holistic
Healthcare Co. Limited on October 29, 2010.
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I N D I A
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ALUTOP: CRISIL Upgrades Rating on INR23.1MM LT Loan to 'BB-'
------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Alutop
to 'BB-/Stable/P4+' from 'B+/Stable/P4'.
Facilities Ratings
---------- -------
INR23.10 Million Long Term Loan BB-/Stable (Upgraded from
B+/Stable)
INR35.00 Million Cash Credit BB-/Stable (Upgraded from
B+/Stable)
INR15.00 Million Letter of Credit P4+ (Upgraded from P4)
The upgrade reflects improvement in Alutop's business risk
profile, driven by increase in operating efficiency as a result of
the recent upgrade of its manufacturing facility. The upgrade
also factors in improvement in Alutop's liquidity, supported by
healthy cash accruals and partial deferment of its planned debt-
funded capital expenditure (capex) on capacity expansion project.
CRISIL believes that Alutop will continue to generate healthy
growth in revenues while maintaining profitability, supported by
healthy demand from its end-user segment.
The ratings reflect Alutop's working-capital-intensive operations
resulting in a below-average financial risk profile marked by high
gearing and small net worth. The firm is also exposed to risks
related to supplier concentration and intense competition in the
pilfer-proof caps industry. These rating weaknesses are partially
offset by the extensive experience of Alutop's promoters in the
pilfer-proof caps business and its established relationships with
its customers.
Outlook: Stable
CRISIL believes that Alutop will continue to benefit from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if Alutop scales up its operations while
maintaining its profitability, and improves its capital structure
through fresh equity infusion. Conversely, the outlook may be
revised to 'Negative' if the firm's financial risk profile
deteriorates because of sharp decline in margins and cash
accruals, large, debt-funded capex, or withdrawals by promoters.
About Alutop
Set up in 1990 by Mr. Bhaskar R Uchil, Alutop manufactures pilfer-
proof caps. The firm has a manufacturing capacity of 2.5 million
pilfer-proof caps per annum, and also has a metal-printing unit in
Bengaluru. Alutop is setting up another metal-printing unit for
around INR31 million, which is expected to be operational in the
first quarter of 2011-12. The firm's operations are managed by Mr.
Uchil Krishnappa and Mr.K Krishnappa.
Alutop reported a profit after tax (PAT) of INR4 million on net
sales of INR212 million for 2009-10 (refers to financial year,
April1 to March 31), against a PAT of INR2 million on net sales of
INR176 million for 2008-09.
AMRUT COTTON: CRISIL Reaffirms 'B-' Rating on INR3.8MM LT Loan
--------------------------------------------------------------
CRISIL has reaffirmed its rating on the bank facilities of Amrut
Cotton Industries which continues to reflect Amrut's weak
financial risk profile marked by high gearing as a result of large
working capital borrowings, and its vulnerability to competitive
pressures and adverse regulatory changes with respect to minimum
support prices (MSP). The impact of the rating weaknesses is
mitigated by the benefits that Amrut derives from its promoter's
experience in the trading business.
Facilities Ratings
---------- -------
INR52.7 Million Cash Credit B-/Stable (Reaffirmed)
INR3.8 Million Long Term Loan B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Amrut will maintain a weak credit risk
profile marked by high gearing and low debt protection measures
over the medium term. The outlook may be revised to 'Positive' if
there is considerable improvement in Amrut's financial risk
profile, driven by improvement in capital structure. Conversely,
the outlook may be revised to 'Negative' if Amrut faces pressure
on its operating margin, or is unable to sustain working capital
improvements made over the previous year.
Update
Amrut's revenues have grown by 31 per cent in 2009-10 (refers to
financial year, April 1 to March 31) over that in the previous
year, led by around 18 per cent increase in sales volumes and
improvement in price realisations. The operating profit margin
has remained stable at 2.3 per cent in 2009-10 compared with
2.2 per cent in the previous year. Amrut reported, on provisional
basis, gross sales of INR170 million for the first half of
2010-11.
Amrut's working capital requirements increased during 2009-10,
with gross current asset level of 93 days largely because of
increase in inventory holding period. This has resulted in
Amrut's financial risk profile remaining weak, with high gearing
of 4.33 times as on March 31, 2010, against 2.5 times on an
average during the previous year. The debt protection indicators
continue to be weak, with interest coverage ratio of 1.35 times
and the net cash accruals to debt ratio of 0.02 times as on March
31, 2010. CRISIL believes that Amrut's working capital
requirements will remain large, resulting in further increase in
gearing and weakening of its financial risk profile over the near
to medium term.
Amrut's liquidity continues to be average, with modest net cash
accruals of around INR2.0 million expected to be generated over
the near to medium term, which is expected to be just about
sufficient to meet its long-term-debt-related repayments of around
INR2.3 million. Also, its bank limit utilization for the 12
months ended September 30, 2010 was moderate at 60 per cent on an
average.
Amrut reported, on provisional basis, a profit after tax (PAT) of
INR0.33 million on net sales of INR471.40 million for 2009-10,
against a PAT of INR0.49 million on net sales of INR359.50 million
for 2008-09.
About Amrut Cotton
Set up in 2006 as a partnership firm by the main promoter
Mr. Sureshbhai Ballabhai, Amrut is in the cotton ginning business.
The cotton bales are sold to traders in the local market, who
export nearly 60 per cent of it to China, Bangladesh, and
Pakistan. Amrut also sells cotton seeds to local oil mills.
AMURTHA TEXTILES: CRISIL Assigns 'C' Rating to INR66.5MM LT Loan
----------------------------------------------------------------
CRISIL has assigned its 'C/P4' ratings to the bank facilities of
Amurtha Textiles.
Facilities Ratings
---------- -------
INR66.50 Million Long Term Loan C (Assigned)
INR16.00 Million Cash Credit C (Assigned)
INR8.00 Million Letter of Credit P4 (Assigned)
The ratings reflect Amurtha's past instances of delay in meeting
its interest repayments, on account of its weak liquidity. The
ratings also reflect Amurtha's weak financial risk profile, marked
by high gearing and weak debt protection metrics. The ratings
also reflect its small scale of operations and the susceptibility
of its operating margin to fluctuations in raw material prices.
These weaknesses are partially offset by the experience of
Amurtha's promoters in the cotton fabric industry, and its
established customer and supplier relationships.
About Amurtha Textiles
Amurtha is a proprietorship firm set up in 1993 by Mr. S
Sathasivam. The firm is into the spinning of cotton bales into
yarn of 40's count. The yarn is then outsourced to manufacture
grey fabric, which is then sold by Amurtha. The firm's spinning
mill is located in Coimbatore (Tamil Nadu). It has an installed
capacity of 17,280 spindles, enhanced from 10,080 spindles in June
2010. The firm is managed by Mr. S Sathasivam and his son, Mr.
Vijay Ananth.
Amurtha reported, on a provisional basis a profit after tax (PAT)
of INR6.3 million on net sales of INR156.9 million for 2009-10
(refers to financial year, April 1 to March 31), against a PAT of
INR3.0 million on net sales of INR139.7 million for 2008-09.
AP REFINERY: CRISIL Reaffirms 'BB' Rating on INR97.3MM Term Loan
-----------------------------------------------------------
CRISIL's rating on A.P. Refinery Pvt Ltd's bank facilities
continues to reflect APR's weak financial risk profile marked by a
high gearing because of working-capital-intensive operations,
susceptibility to volatility in edible oil prices, and exposure to
intense market competition because of fragmentation in the edible
oils industry. These rating weaknesses are partially offset by
APR's above-average operating efficiencies, supported by
integrated operations, and promoter's experience in the rice bran
oil industry.
Facilities Ratings
---------- -------
INR195.0 Million Cash Credit BB/Stable (Reaffirmed)
INR97.3 Million Term Loan BB/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that APR will maintain its business risk profile
over the medium term, supported by its integrated operations and
promoters' industry experience. The company's financial risk
profile is expected to remain weak because of large working
capital requirements and debt-funded capital expenditure (capex)
plans. The outlook may be revised to 'Positive' if APR reports
more-than-expected sales and higher-than-expected profitability,
or if there is fresh equity infusion into the company, resulting
in significant improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if APR's
working capital intensity increases, or it undertakes larger-than-
expected debt-funded capex, thereby weakening its capital
structure.
About A.P. Refinery
Incorporated in 2004, APR began commercial operations in early
2007. Till 2008-09 (refers to financial year, April 1 to
March 31), it was operating only through a solvent extraction unit
taken on lease in Malerkotla (Punjab) with capacity of 250 tonnes
per day (tpd). In 2009-10, the company set up a solvent
extraction unit with capacity of 450 tpd and refinery capacity of
75 tpd in Jagraon (Punjab).
APR reported a profit after tax (PAT) of INR8.9 million on net
sales of INR768 million for 2009-10, against a PAT of INR2.4
million on net sales of INR396 million for the previous year.
APEX AUTO: CRISIL Lifts Rating on INR565MM Term Loan to 'BB'
------------------------------------------------------------
CRISIL has upgraded its ratings on Apex Auto Ltd's bank facilities
to 'BB/Stable/P4+' from 'B/Stable/P4'.
Facilities Ratings
---------- -------
INR185.0 Million Cash Credit BB/Stable (Upgraded from
'B/Stable')
INR565 Million Term Loan BB/Stable (Upgraded from
'B/Stable')
INR40 Million Bank Guarantee P4+ (Upgraded from 'P4')
INR10 Million Letter of Credit P4+ (Upgraded from 'P4')
The rating upgrade reflects timely servicing of its debt
obligations over the past 15 months. The upgrade also factors in
the improvement in the company's liquidity profile as reflected in
increased cash accruals to INR125 million in 2009-10 (refers to
financial year, April 1 to March 31), and its low average bank
limit utilisation of 44 per cent over the 12-month period ended
August 31, 2010. Further, CRISIL believes that AAL will report
healthy growth in revenue and operating profitability over the
medium term driven by the improved demand outlook for construction
equipment ancillaries.
The ratings reflect the company's exposure to risks relating to
product and customer concentration in its revenue profile,
fluctuations in demand for its products as sales are correlated to
spending on infrastructural activities, and volatility in input
prices. These weaknesses are mitigated by AAL's strong
relationship, marked by repeat orders, with Telco Construction
Equipment Co Ltd, and moderate financial risk profile.
Outlook: Stable
CRISIL believes that AAL will maintain its credit risk profile
over the medium term on the back of established customer
relationship and the expected healthy growth in its end-user
industry. The outlook could be revised to 'Positive' if AAL's
scale of operations increases significantly, or if it diversifies
its customer profile. Conversely, the outlook could be revised to
'Negative' if AAL's profitability declines, and consequently, its
debt protection measures deteriorate or if it undertakes large
debt-funded capital expenditure.
About Apex Auto
AAL, incorporated in 1994 manufactures construction equipment
ancillary parts such as arms, buckets, and loaders for excavators,
cranes and back-hoe loaders. These components are mainly sold to
TELCON, which is a construction equipment manufacturer. AAL's
products are used in mining, and hard and soft soil digging. It
has four manufacturing units, of which three are in Dharwad
(Karnataka) and one in Jamshedpur (Jharkhand).
For 2009-10 (refer to financial year, April 1 to March 31), AAL
reported a profit after tax (PAT) of INR54 million on net sales of
INR886 million, against a PAT of INR24 million on net sales of
INR1008 million in the previous year.
BHARAT SHIP: ICRA Places 'LBB' Rating on INR3cr Cash Credit
-----------------------------------------------------------
ICRA has assigned an "LBB" rating to the INR3.00 crore cash credit
facility of Bharat Ship Breakers Corporation. The outlook for the
rating is stable. ICRA has also assigned an "A4" rating to the
INR27.60 crore, short-term, non-fund based limits of BSC.
The ratings are constrained by the volatility which is associated
with the business of the firm as the prospects of ship breaking
business are dependent on the international shipping business
fundamentals; the small size of operations, weak profitability of
the firm and its vulnerability to fluctuations in steel prices.
The operations are also working capital intensive. BSC being a
partnership concern, any significant withdrawals from the capital
account would affect the capital structure of the firm.
The ratings have positively considered the long standing presence
of BSC's promoter in the ship breaking business, its favorable
capital structure and favorable outlook for the ship breaking
industry in the near future.
About Bharat Ship
Incorporated in 1985, Bharat Ship Breakers Corporation is a
partnership firm engaged in ship breaking activities. The
partners of the firm have been associated with the Ship Breaking
business since 1983. BSC operates from Plot No. 63 at Alang-
Sosiya Ship breaking Yard, Bhavnagar, Gujarat on a lease basis.
The area of the plot is 2790 sq meters and is 60 meters in length.
FACT SOFTWARE: CARE Revises Rating on INR70.35cr Loan to 'CARE D'
-----------------------------------------------------------------
CARE revises the rating assigned to bank facilities of
Fact Software Pvt. Ltd.
Amount
Facilities (INR cr) Ratings
---------- ------- -------
Long-term Bank Facilities 70.35 'CARE D' Revised from
CARE B
Rating Rationale
The rating revision takes into account the ongoing delays in debt
servicing by Fact Software (P) Ltd, on account of its stressed
liquidity profile.
FSL, promoted by Mr. Ravi Mohan Sethi, was incorporated on
September 9, 2005 with the main objective of building and leasing
of infrastructure facilities in the area of IT and IT-
related businesses. The company has developed an IT Park in Noida
involving 6 lac sq ft of built-up area along with 3 lac sq ft of
basement area and stilt area of 43 thousand sq ft. Though the
project was completed in FY10, FSL has not been able to lease or
sell the space as envisaged which has significantly affected its
earnings and cash flows, leading to delays in debt servicing.
During FY10, FSL earned a total income of INR2.01 crore and
incurred a net loss of INR4.10 crore.
FORWARD SHOES: ICRA Places 'LBB' Rating on INR16.75cr Bank Debts
----------------------------------------------------------------
ICRA has assigned an LBB rating to the INR16.75 crores fund based
term loan facilities of Forward Shoes (India) Private Limited; the
outlook on the rating is Stable. ICRA has also assigned an A4
rating to the INR14.00 crore short-term fund based facilities of
Forward Leather Company.
The ratings are constrained by the competitive pressure in the
export and domestic market leading to low margins; high dependence
on the European market, particularly UK leading to high geographic
concentration; competition from domestic and international
players, especially China in the export market; weak bargaining
power against customers, which primarily include large
international brands. The ratings are also constrained by the
enforcement of pollution control norms, power shortages and labor
issues leading to an increase in manufacturing costs; exposure to
foreign exchange risk due to high proportion of exports in
revenues; and the high financial risk profile of the firm
characterised by low profitability and high gearing leading to
stretched cash flows. The ratings, however, favorably factor the
established position of the group in the footwear and leather
export market, with a stable customer profile; long track record
of the promoters in the leather and footwear business with a
history of more than three decades; positive outlook for the
leather and footwear export industry due to the rising demand
after the recent slowdown; and the integrated nature of
operations, with the group having its own tannery as well as sole
and upper manufacturing capacities. The company is also pursuing
an expansion project to increase the capacity of the company to
cater to the rising demand.
About Forward Shoes
Forward Shoes India Pvt. Ltd. is a full shoe manufacturer and
exporter, a part of the Forward Group of companies. It is a
closely held private limited company, promoted by the family
members of Mr. Muhamad Yavar Dhala, who is the Managing Director
of the Forward group. The company has two divisions to
manufacture shoes, with a combined capacity of about 4000
pairs/day in Chromepet, Chennai. The company has amongst its
customers international brands like Clarks, Marks & Spencers,
Kickers, Brasher, Geox, Stonefly, J C Penny and Startrite.
The firm reported operating income of INR73.85 crore and net
after-tax profit of INR0.02 crores in FY2010.
GOYAL HOSPITAL: CRISIL Assigns 'BB' Rating to INR93MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the bank facilities
of Goyal Hospital and Research Centre Pvt Ltd.
Facilities Ratings
---------- -------
INR5.0 Million Cash Credit Limit BB/Stable (Assigned)
INR93.0 Million Term Loan BB/Stable (Assigned)
The rating reflects GHRCPL's small scale of operations, limited
financial flexibility, and geographically concentrated revenue
profile. These rating weaknesses are partially offset by
experience of GHRCPL's promoters in the healthcare industry and
the company's wide offering of secondary and tertiary healthcare
services, and moderate financial risk profile, marked by low
gearing and moderate debt protection metrics.
Outlook: Stable
CRISIL believes that GHRCPL's scale of operations will remain
small and it will maintain its financial risk profile, supported
by low gearing and moderate debt protection metrics, over the
medium term. The outlook may be revised to 'Positive' if the
company significantly improves its scale of operations while
maintaining profitability. Conversely, the outlook may be revised
to 'Negative' if lower-than-expected revenues or profitability,
lead to depressed cash accruals, or if the company undertakes a
large debt-funded capital expenditure programme, which would
deteriorate its capital structure.
About Goyal Hospital
GHRCPL was set up by Mr. Anand Goyal in 1989 in Jodhpur
(Rajasthan). GHRCPL is a 110 bedded, Ex-Servicemen Contributory
Health Scheme (ECHS) approved multi-specialty hospital. GHRCPL
provides secondary and tertiary healthcare services in various
areas with focus on super-specialty fields such as cardiac care,
neurology, traumatology, nephrology and oncology. GHRCPL also
runs a cardiac care centre in collaboration with Escorts Heart
Institute & Research Centre (Escorts), New Delhi, in the same
premises. GHRCPL employs 25 resident doctors, around 35 visiting
consultants, 250 nurses and around 50 administration staff.
GHRCPL reported a profit after tax (PAT) of INR4.9 million on net
sales of INR107 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR3.0 million on net sales
of INR82 million for 2008-09.
GURU AASHISH: ICRA Assigns 'LBB' Rating to INR29.45cr Debts
-----------------------------------------------------------
ICRA has assigned an "LBB" and A4 ratings to the INR29.45
Crore fund-based bank facilities and an "A4" rating to the
INR1.00 Crore short term non-fund-based bank facilities of Guru
Aashish Texfab Ltd. The outlook assigned to the long-term rating
is "Stable".
The ratings take into account GATL's low profitability and return
indicators along with its presence in the highly fragmented
textile trading business characterized by limited value addition.
The ratings also factor in GATL's leveraged capital structure
resulting in modest coverage indicators and its stretched
liquidity profile as demonstrated by high levels of working
capital utilization. The ratings favorably factor in the
promoters' experience of trading in fabrics that has helped GATL
diversify its customer and supplier base and achieve a sustained
growth in operating income, though margins remain low.
About Guru Aashish
Guru Aashish Texfab Ltd a closely held public limited company is
engaged in the business of trading fabrics used for kids wear and
ladies wear. GATL has a registered office in Mumbai.
Recent Results
GATL recorded a net profit of INR0.64 Crore on an operating income
of INR180.61 Crore for the year ending March 31, 2010 as per the
audited figures.
HARRISONS MALAYALAM: ICRA Ups Rating on INR56.2cr Loans to 'LBB+'
-----------------------------------------------------------------
ICRA has upgraded the long term rating assigned to the INR56.2
crore term loans and the INR37.0 crore fund based facilities of
Harrisons Malayalam Limited to LBB+ from LB. The outlook on the
rating is stable. ICRA has also upgraded the short term rating
assigned to the INR7.0 crore fund based facilities and the INR11.5
crore non-fund based facilities of HML to A4+ from A4. ICRA has
also withdrawn the long-term rating of 'LB' assigned earlier to
the INR5.0 crore term loan programme of HML at the request of the
Company; the instrument has been fully redeemed and there is no
amount outstanding against it.
The revision in ratings reflects the Company's leading market
position in the domestic natural rubber industry resulting in
pricing flexibility, HML's diversified client base which provides
stability to revenues and the favorable medium term outlook for
the natural rubber and domestic tea industry. The Company's
accelerated replanting initiatives in the rubber division and
infilling exercises in the tea division are likely to result in
enhanced quality, better yield and provide revenue stability in
the long term. The ratings are however constrained by the
Company's exposure to the inherent cyclicality associated with
domestic natural rubber and tea industry, weak capital structure
after adjusting for revaluation reserves and lower margins on
account of high overheads. The debt levels are however expected
to remain at moderate levels with minimal debt-funded capital
expenditure plans on the anvil.
About Harrisons Malayalam
HML is a part of RPG Enterprises Ltd, an established group with
interests in tyre, carbon black, power transmission,
telecommunications, retail and entertainment. Incorporated in
1978, HML is primarily a rubber and tea producer, with revenues
from the above activities accounting for the bulk of its operating
income. With a view to diversify its crop portfolio from tea and
rubber, the Company is increasing the area under crops such as
banana, pineapple, passion fruit, pepper, cardamom, cloves, cocoa
and cinnamon.
With eleven rubber plantations spread over 7,195 hectares of land
in Kerala, HML is one of the major rubber plantation companies in
India with a production of over 10,000 MT during 2009-10. The
Company is also one of the larger tea producers in South India,
producing 16-18 million kgs CTC and Orthodox teas in its thirteen
tea gardens annually, the same spread over 6,000 hectares of land
primarily in Kerala and some in Tamil Nadu. The Company also has
an engineering division which is engaged in designing, supplying,
erection and commissioning projects that include tea factories,
rubber factories, effluent treatment plants, waste heat recovery
systems, stainless and carbon steel pipelines, custom built
dryers, air conditioning, and industrial water supply.
Recent Results (Unaudited)
For the first half year ended September 30, 2010, the Company
posted a net loss of INR9.9 crores (net profit of INR6.2 crores
during H1 2009-10) on an operating income of INR167.1 crores
(INR155.1 crores during H1 2009-10).
HOTEL VAIGAI: CRISIL Places 'D' Rating on INR211 Million LT Loan
----------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of Hotel
Vaigai Pvt Ltd.
Facilities Ratings
---------- -------
INR211.00 Million Long Term Loan D (Assigned)
INR5.00 Million Cash Credit D (Assigned)
The rating reflects delays by HVPL in servicing its debt. The
delays have been caused by HVPL's weak liquidity, resulting from
the nascent stage of its operations.
HVPL has a weak financial risk profile, marked by high gearing and
weak debt protection metrics, and is exposed to competition from
other three-star hotels in Chennai. The company, however,
benefits from the extensive experience of its promoters in the
hotel industry.
HVPL was incorporated in 1978 by Mr. N K Kondalsamy. In the same
year, the company set up a budget hotel, Hotel Vaigai, in Egmore
(Chennai). The hotel was demolished in 2004 and reconstructed
during the period 2007 to 2009. The hotel resumed operations in
December 2009. HVPL currently operates the three-star hotel under
its own brand, Fortel. Its day-to-day operations are managed by
Mr. K Jayakanthan, son of the promoter Mr. N K Kondalsamy.
HVPL also has a hotel in Kodaikanal (Tamil Nadu), Hotel Vaigai
Inn, which has been leased out for an annual payment of INR1.6
million.
HVPL reported a loss of INR31.60 million on net sales of
INR27.00 million for 2009-10 (refers to financial year, April 1 to
March 31), against a net profit of INR0.06 million on net sales of
INR1.74 million for 2008-09.
KEERTHI INDUSTRIES: CARE Revises Ratings on INR73.9cr LT Loans
--------------------------------------------------------------
CARE revises the rating assigned to the bank facilities of
Keerthi Industries Ltd.
Amount
Facilities (INR cr) Ratings
---------- ------- -------
Long-term Bank Facilities 73.9 'CARE D' Revised from
CARE BBB-
Rating Rationale
The revision in rating takes into account the strain on the
liquidity position of Keerth Industries Ltd. and consequent delays
in servicing of debt obligations.
About Keerthi Industries
Incorporated in 1982, KIL presently, belongs to Mrs. J Triveni and
Mr. J.S. Rao of Hyderabad. During FY10, a group company,
Hyderabad Flexitech Ltd., engaged in manufacturing of Printed
Circuit Boards (PCB) got merged with KIL with retrospective effect
from April 01, 2007. Currently, KIL is engaged in manufacturing
of Ordinary Portland Cement (OPC) and Portland Pozzolona Cement
(PPC) variety with product mix of about 95:05 and PCB. It sells
its cement under the brand name 'Suvarna Cements'. Besides KIL
has a wind mill of capacity 1.5 MW at Karnataka.
In June 2010, KIL completed its expansion project (involving
capacity expansion of cement from 2,97,000 TPA to 5,94,000 TPA)
with a delay of about eight months and incurring cost overrun of
about INR10.0 crore for which funds are yet to be tied up.
During FY10, KIL has achieved total income of INR63.2 crore with
PAT (after deferred tax) of INR4.2 crore. As per the unaudited
working results for the quarter ended June 30, 2010 (Q1FY11), the
company registered decline in revenue and posted loss at both
PBILDT and PAT (after deferred tax) level with a cash loss of
INR2.1 crore during the quarter.
KINGFISHER AIRLINES: Wins Lender Support to Restructure Debt
------------------------------------------------------------
Siddharth Philip at Bloomberg News reports that Kingfisher
Airlines Ltd. got preliminary approval from lenders for a debt
restructuring plan to cut interest costs and benefit from rising
demand for air travel.
"The bank consortium has agreed generally to the package," Ravi
Nedungadi, chief financial officer at the carrier's parent UB
Group, told Bloomberg by phone. "Now each of the banks has to
necessarily pass it through their respective board, so we'll wait
for them to approve before we comment on the restructuring plan."
The airline has lost money six years in a row, accumulating net
debt of INR77.2 billion (US$1.74 billion) as of March, according
to data compiled by Bloomberg. Billionaire founder and Chairman
Vijay Mallya in September said a planned debt revamp would slash
interest costs by as much as 11%, Bloomberg notes. The central
bank approved the plan in the same month.
According to Bloomberg, State Bank of India Ltd. said November 8
that it would approve the debt restructuring program by the end of
December.
About Kingfisher Airlines
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops. It maintains bases in major cities such as Delhi and
Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known
for its United Breweries unit, and the carrier shares the
Kingfisher brand with a popular Indian beer. UB Holdings also
owns a stake in another domestic carrier, Air Deccan, whose
operations it combined with Kingfisher Airlines in mid-2008.
Kingfisher Airlines began flying in 2005.
* * *
Kingfisher Airlines posted three consecutive net losses of
INR1.89 billion, INR2.13 billion and INR1.64 billion for FY2008
through FY2010.
OVIS EQUIPMENTS: ICRA Assigns 'LBB+' Rating to INR5.6cr Debts
-------------------------------------------------------------
ICRA has assigned 'LBB+' rating to INR5.60 crore fund based
facilities and INR5.50 crore non fund based facility of Ovis
Equipments Pvt. Ltd.
The assigned rating is constrained by OEPL's relatively small
scale of operations, stagnant revenue in FY 2010 high receivables
which are older than six months and low pricing power which can be
inferred from the susceptibility of the company's profit margins
to volatility in raw material prices and cyclicality in end user
segments The ratings are also constrained on account of its single
supplier policy for each raw material which exposes the company to
supplier concentration risks. The rating is however supported by
more than two decades long experience of the promoters in this
niche industry and strong growth expected in end user industries.
Established in 1987, OEPL is engaged in manufacturing of diesel
shunting locomotives, overhead track maintenance vehicles, self
driven trolleys and spare parts to be used in specialized wagons.
Past record of deliveries and performance of manufactured product
are key parameters assessed by the prospective client before
placing orders due to the specialized nature of this industry.
This combined with the small size of the industry acts as a
significant entry barrier to new players.
OEPL is focused on assembling diesel shunting locomotives and has
benefited significantly from the capacity addition by private
sector players in cement and steel industries. The customer
profile of the company is very diversified which includes many
reputed private and public sector companies like BHEL, Reliance
infrastructure Limited, Grasim Industries Limited, Ultra Tech
cements Limited, Integral coach Factory, Brahmos Aerospcae, South
Western Railway etc.
OEPL has an order book position of INR 31 crores to be executed
over next two financial years out of which 32% orders were bagged
in H1 of FY 2011. The order book position is driven mainly by the
locomotive business. OEPL's revenue grew by 75% CAGR between FY
2006 to FY 2009 due to the growth in orders from coal, steel and
cements sectors; but it remained stagnant in FY2010 as compared to
FY2009. However despite this growth the company's scale of
operations is modest with an operating income of INR22.75 crores
in FY 2010. The top 5 clients accounted for 67% of total revenues
in FY 2010 and the top customer alone accounted for 22% of its
total revenues. The profitability metrics has also improved which
is reflected in operating margins of 11.03% in FY 2010 compared to
7.65% in FY 2009. ROCE of the company was 25.48% in FY 2010. While
operating margins have improved in FY 2010 compared to the
preceding year OEPL's profitability remains susceptible to
fluctuations in the input prices and inherent cyclicality in the
end user segments.
The working capital intensity of OEPL has increased in FY 2010 as
seen from NWC/OI of 36.7% as compared to 26.9% in FY 2009. This
high working capital intensity is due to the accumulation of
receivables one third of which were older than six months and high
inventory levels. The leverage showed significant improvement in
FY 2010 on account of regular term loan repayments. The gearing
stood at 1.59 on March 31, 2010, as against 1.78 as on March 31,
2009. Lower debt levels combined with good profitability have
resulted in comfortable debt coverage indicators as reflected in
NCA/Total Debt of 18.53%, OPBIDTA/Total Debt of 37.50% and
interest coverage of 3.44 times in FY 2010.
Going forward, the ability of the company to remain profitable by
streamlining manufacturing costs in the backdrop of end user
cycles and improve its capital structure will remain the key
rating drivers.
About Ovis Equipments
Ovis Equipments Private Limited was established in 1987. OEPL is
focused on manufacturing diesel shunting locomotives which are
generally in the power range of below 1000 HPs. OEPL also
manufactures self driven trolleys, overhead track maintenance
vehicles, spare parts required for specialized wagons etc. The
company has two industrial units in Hyderabad. The second unit
started operation in FY 2008. The company has two sister
concerns, Omega Engineering Services and OSIV Technologies. Both
are partnership firms with OEPL's promoters as partners. Omega
Engineering Services sources steel from OEPL and provides OEPL and
other clients with spare parts to be used in locomotives. OSIV
Technologies is a designing firm. During FY 2010, OEPL reported
sales of INR 24.57 crore and net profit of INR 1.10 crore as
against sales of INR 25.70 crore and net profit of INR 0.81 crore
in FY 2009.
RAMSARUP INDUSTRIES: CARE Revises Rating on Bank Loans to 'CARE B'
------------------------------------------------------------------
CARE revises ratings assigned to the bank facilities of
Ramsarup Industries Ltd.
Amount
Facilities (INR cr) Ratings
---------- ------- -------
Long-term Bank Facilities 1,365.4 'CARE B' Revised from
CARE BBB-
Short-term Bank Facilities 70.4 'PR4' Revised from
PR3
Long/Short-term Bank 169.1 'CARE B'/'PR4'
Facilities Revised from CARE
BBB- /PR5
Rating Rationale
The revision in ratings is on account of delay in project
execution arising out of the company's inability to arrange
additional term loan, difficulty in carrying out operation at
completed projects due to lack of working capital for its ongoing
projects at Kharagpur, strain on the liquidity position leading to
instances of delays in debt servicing obligations and significant
amount of debt repayment obligation falling due from FY12. The
ratings also factor in risk of volatility in raw material &
finished goods prices, risks associated with implementation of the
remaining part of the project, highly leveraged capital structure
of the company and cyclicality in the steel industry on which the
company's fortune depend to a large extent. The ratings also take
cognizance of experience of the promoters, company's ability to
offer a whole range of TMT Bars & wires to customers and
empanelment with Power Grid Corp. of India Ltd. Performance of
the steel industry, ability to successfully complete the ongoing
projects with stabilization in operation and regularization of
debt servicing will remain the key rating sensitivities.
About Ramsarup Industries
RIL, incorporated in 1966, belongs to Shri Ashish Jhunjhunwala and
his family of Kolkata. The company sells steel wires and TMT
bars, under the brand name 'Ramsarup' and 'Ramsarup TMT'
respectively. RIL is setting up an integrated steel project at
Kharagpur, at an aggregate cost of INR1,267.3 crore which is being
financed at a debt-equity ratio of 1.85:1. However, non
achievement of financial closure resulted in substantial delays
and cost overrun.
During FY10, RIL has achieved net sales of INR2,057.2 crore
(INR1,974.2 crore in FY09) with PAT (after deferred tax) of
INR44.8 crore (net loss of INR75.0 crore in FY09). As per the
unaudited working results for the quarter ended June 30, 2010
(Q1FY11), the company registered almost same level of GCA vis-a-
vis corresponding quarter of the last year (Q1FY10).
SRI INDRA SOLVENT: ICRA Assigns 'LB+' Rating to INR7 Crore Debts
----------------------------------------------------------------
ICRA has assigned 'LB+' rating to INR7.00 crore fund based
facilities of Sri Indra Solvent Oils Private Limited.
The rating is constrained by SISOPL's high project gearing of 4.75
times as on August 31, 2010 and the fact that the manufacturing
plant is yet to be completely operational. The ratings also take
note of the fragmented nature of the domestic edible oil industry
and the competition that RBO faces from cheaper substitutes,
particularly palm oil which could exert pressure on the
profitability of the RBO business. The rating is also constrained
by exposure to cyclicality of the feedstock, leading to
constraints in passing on hike in input costs to customers and
thereby resulting in stretching of margin. Going forward, SISOPL's
ability to ramp up operations in a timely manner and maintain its
profit margins given the cyclicality of feed stock would be the
key rating sensitivities.
However, the assigned rating considers the favorable prospects for
RBO owing to its health benefits and competitive pricing compared
to other edible oils like soybean and sunflower oil. ICRA draws
comfort from the experience of promoters and management in the
business, with one of the directors being the promoter of Sameera
Solvent Oils which has been producing RBO since January 2004, and
also from the favorable project location (Gangavathy Taluk in
Koppal district of Karnataka) with easy availability of raw
materials and lower transportation costs.
About Indra Solvent
SISOPL, incorporated in 2008 by Mr. Narendra Ch is in the business
of manufacturing rice bran oil (RBO) through the solvent oil
extraction process RBO. The plant is located in Gangavathy taluk
in Koppal District, Karnataka. The construction of plant was
started in November 2009 and was completed by August 2010. The
company has begun the trial runs of the plant from September 2010
and the commercial production is likely to start in November,
after
the completion of construction of 2 oil storage tanks. SISOPL is
expected to earn major portion of its revenues from
the oil extraction business and some of it from selling of de-
oiled rice bran. So far company has realised INR 0.15
crores of revenues, by selling the oil produced from the trial
runs of plant, at an average realization price INR 39,000/metric
ton.
STEEL PRODUCTS: CRISIL Assigns 'D' Rating to INR19.8MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to Steel Products Ltd bank
facilities.
Facilities Ratings
---------- -------
INR19.80 Million Term Loan D (Assigned)
INR168.50 Million Cash Credit D (Assigned)
INR21.50 Million Letter of Credit P5 (Assigned)
INR170.00 Million Bank Guarantee P5 (Assigned)
The rating reflects delay by SPL in servicing its term loan
obligations; the delays have been caused by SPL's weak liquidity
which is on account of stretched receivables.
SPL's weak financial risk profile is marked by high gearing and
weak debt protection measures; and the company's large working
capital requirements. SPL, however benefits from its promoters'
experience in the steel industry and established relationship with
customers aided by long standing presence.
Steel Products Limited, based in Kolkata is engaged in
manufacturing of transmission line towers, sub station structures,
telecom towers and railway electrification structures. The
company is managed by Mr. Hemant Kumar Khaitan. The company has
three manufacturing units used for galvanization and fabrication,
two in Howrah, West Bengal and one in Raipur, Chattisgarh with a
total installed capacity of 60,000 tonnes per annum.
The company has a strong customer base which includes companies
like ABB Limited (Rated AAA/Stable/P1+ by CRISIL), Nortel Networks
Corporation, Bharat Heavy Electricals Limited (Rated
AAA/Stable/P1+ by CRISIL). The company has an unexecuted order
book position of INR500 million.
SPL reported a provisional profit after tax (PAT) of INR13.9
million on net sales of INR499.8 million for 2009-10 (refers to
financial year, April 1 to March 31), against a loss of INR1.4
million on net sales of INR619.4 million for 2008-09.
=========
J A P A N
=========
JAPAN AIRLINES: Files Lawsuit Against Shizuoka Government
---------------------------------------------------------
Kyodo News reports that Japan Airlines Corp has filed a lawsuit
against the Shizuoka prefectural government seeking JPY152.95
million in subsidies for flights from Shizuoka to Fukuoka which
the government has refused to pay to the struggling airline.
According to Kyodo News, JAL filed the suit with the Tokyo
District Court in a bid to have the local government pay the money
based on a guarantee agreement between the two sides.
According to Kyodo News, the suit states the prefectural
government agreed to pay the carrier JPY15,800 per vacant seat if
the occupancy rate of JAL flights from Shizuoka airport, which
opened in June last year, falls below 70%. But the Shizuoka
prefectural government has refused to pay the money, saying the
airline violated the principle of good faith by unilaterally
terminating its flight services at Shizuoka airport, Kyodo News
relates.
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 AIRLINES: Kyocera & Daiwa Securities to Invest JPY20 Billion
------------------------------------------------------------------
Kyocera Corp. and Daiwa Securities Group Inc. will likely invest
up to JPY20 billion in total in Japan Airlines Corp., Kyodo News
reports citing sources close to the matter.
According to the report, the investment would help bolster the
financial base of JAL, which went bankrupt in January and has been
under court-managed rehabilitation.
Kyodo News relates Kazuo Inamori, chairman of JAL and the founder
of Kyocera, said last month that JAL plans to boost its capital by
another JPY50 billion on top of the already set JPY350 billion
investment by the government-backed Enterprise Turnaround
Initiative Corp of Japan. Of the JPY50 billion, Kyodo News notes,
Kyocera and Daiwa Securities will take up JPY20 billion yen, while
several companies, including trading houses, banks and brokerage
houses, are considering shouldering the remaining JPY30 billion.
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)
ORIX-NRL TRUST: S&P Downgrades Ratings on Various Certificates
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class A to I trust certificates issued under the ORIX-NRL Trust 15
transaction and removed the ratings on classes A to C from
CreditWatch with negative implications, where they were placed on
Aug. 12, 2010. At the same time, S&P affirmed its rating on the
class X trust certificates issued under the same transaction.
Out of the seven nonrecourse loans and three specified bonds
(effectively nine loans) that initially backed the transaction,
only seven loans (effectively seven loans; one loan and one
specified bond that have defaulted, and five loans that are due to
mature by the end of May 2012) remain.
S&P downgraded classes A to I because:
One remaining loan (the loan originally represented about 41% of
the total initial issuance amount of the trust certificates),
which has defaulted, is backed by 18 rental condominium buildings
(initially 20 condominium buildings, two of which have been sold)
and one retail building located in Tokyo. S&P lowered its
assumption with regard to the likely collection amount from the
related collateral properties after considering the progress of
collection operations undertaken by the servicer.
One remaining specified bond (the specified bond originally
represented about 14.4% of the total initial issuance amount of
the trust certificates), which has defaulted, is backed by a
retail and office complex in Osaka Prefecture. A major tenant of
the retail portion of the complex has given notice of departure.
From a report that S&P has received through the servicer, S&P has
learned that finding a new tenant will likely be difficult because
the portion of the complex to be vacated was designed to meet the
particular needs of the departing tenant. S&P revised down
sharply its assumption with respect to the likely rent for the
portion of the complex to be vacated and lowered its assumption
with regard to the likely collection amount from the property
accordingly.
With regard to the five loans maturing by the end of May 2012, it
is S&P's view that a certain level of decline in the likely
collection amount from the related collateral properties appears
inevitable given the performance of the properties in question, as
well as the situation regarding real estate deals involving
similar asset types, among other factors.
S&P currently assume the combined value of the properties backing
the transaction's seven remaining loans to be about 66% of S&P's
initial underwriting value.
ORIX-NRL Trust 15 is a multi-borrower CMBS transaction. The trust
certificates were initially secured by seven nonrecourse loans and
three specified bonds (tokutei shasai) extended/issued to nine
obligors, which were originally backed by 33 real estate
certificates and real estate properties. The transaction was
arranged by ORIX Corp., 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 June 2014 for the class A trust
certificates, the full payment of interest and ultimate repayment
of principal by the legal final maturity date for the class B to I
certificates, and the timely payment of available interest for the
class X certificates.
Ratings List
ORIX-NRL Trust 15 (The issue date was Sept. 4, 2007.)
JPY37.8 billion trust certificates due June 2014
Ratings Lowered, Off Creditwatch Negative
Class To From Initial Issue Amount
----- -- ---- --------------------
A AA+ (sf) AAA (sf)/Watch Neg JPY25.4 bil.
B A- (sf) A+ (sf)/Watch Neg JPY3.5 bil.
C BB- (sf) BBB- (sf)/Watch Neg JPY3.4 bil.
Ratings Lowered
Class To From Initial Issue Amount
----- -- ---- --------------------
D B- (sf) B (sf) JPY3.0 bil.
E CCC (sf) B- (sf) JPY1.3 bil.
F CCC (sf) B- (sf) JPY0.4 bil.
G CCC (sf) B- (sf) JPY0.4 bil.
H CCC (sf) B- (sf) JPY0.2 bil.
I CCC (sf) B- (sf) JPY0.2 bil.
Rating Affirmed
Class Rating Initial Notional Principal
----- ------ --------------------------
X* AAA (sf) JPY37.8 bil.
* Interest only
* S&P Puts Ratings on Five Japanese CDOs on CreditWatch Positive
----------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch with
positive implications its ratings on five tranches relating to
five Japanese synthetic CDO transactions.
The five tranches placed on CreditWatch positive had synthetic
rated overcollateralization levels in excess of 100% at higher
ratings than the current ratings during October's month-end run.
For the transactions that S&P ran on version 5.1, S&P applied the
top obligor and industry test SROCs, in addition to the Monte
Carlo default simulation results.
By the end of the month, S&P intend to review the tranches listed
below, along with any other tranches with ratings that are
currently on CreditWatch with negative or positive implications,
in accordance with S&P's current CDO criteria.
Ratings List
Signum Vanguard Ltd.
Class A secured floating-rate credit-linked notes series 2005-06
To From Issue Amount
-- ---- ------------
CCCpNRi (sf)/Watch Pos CCCpNRi (sf) JPY3.0 bil.
Silk Road Plus PLC
Series 13 limited recourse secured fixed rate credit-linked notes
To From Issue Amount
-- ---- ------------
BB+ (sf)/Watch Pos BB+ (sf) S$8.064 mil.
Series 14 limited recourse secured fixed rate credit-linked notes
To From Issue Amount
-- ---- ------------
BB+ (sf)/Watch Pos BB+ (sf) S$8.5 mil.
Series 15 limited recourse secured fixed-rate credit-linked notes
To From Issue Amount
-- ---- ------------
BB+ (sf)/Watch Pos BB+ (sf) S$8.0 mil.
Series 16 limited recourse secured fixed-rate credit-linked notes
To From Issue Amount
-- ---- ------------
BB+ (sf)/Watch Pos BB+ (sf) S$9.0 mil.
===============
M A L A Y S I A
===============
AYER MOLEK: Required to Submit Regularization Plan by Nov. 18
-------------------------------------------------------------
MIMB Investment Bank Berhad on behalf of the Board of Directors of
AMolek, disclosed that the Company is required to announce and
submit a comprehensive regularization plan on or before Nov. 18,
2010.
The Ayer Molek Rubber Company Berhad on November 3, 2010, entered
into an agreement with the existing shareholders of Toptrans
Engineering Sdn Bhd wherein the parties have agreed to undertake
these proposals:
(a) Proposed Acquisition of Toptrans;
(b) Proposed Share Exchange;
(c) Proposed Offer for Sale;
(d) Proposed Private Placement; and
(e) Proposed Transfer of Listing Status.
Details of the Proposed Restructuring Scheme is available for free
at: http://ResearchArchives.com/t/s?6e15
About Ayer Molek
Headquartered in Kuala Lumpur, Malaysia, The Ayer Molek Rubber
Company Berhad is principally engaged in the leasing of its
entire plantation land to a third party. It operates solely in
the domestic market.
* * *
The Ayer Molek Rubber Company Berhad has been classified an
Amended Practice Note 17 company based on the criteria set by the
Bursa Malaysia Securities Bhd after it triggered Paragraph 8.16A
of the Listing Requirements.
MIMB Investment Bank Berhad said that the bourse has granted a
conditional approval to AMolek for its application seeking a
waiver from meeting the minimum issued and paid-up capital of
MYR60 million as required under Paragraph 8.16A of the Listing
Requirements of Bursa Securities.
HO HUP CONSTRUCTION: Inks Share Sale Deal With Plenitude Frontier
-----------------------------------------------------------------
Ho Hup Construction Company Bhd has entered into a conditional
share sale agreement with Plenitude Frontier Sdn Bhd for the
acquisition of 100% equity interest in Fivestar Development
(Puchong) Sdn Bhd and Kolektra Recreation Sdn. Bhd. Plenitude is
a special purpose vehicle incorporated to act as the holding
company of the target companies.
Ho Hup said: "The acquisitions are part of the Company's
initiative to restore Ho Hup onto stronger financial footing via,
among others, the injection of new viable business."
Ho Hup proposes to acquire the entire issued and paid-up capital
of Kolekta and Fivestar from Plenitude for a total purchase
consideration of MYR46,803,900 to be satisfied by the issuance of
46,803,900 Ho Hup shares at an issue price of MYR1.00 each.
Ho Hup will not assume any liabilities (including contingent
liabilities and guarantees) of Plenitude, if any, arising from the
proposed acquisition of target companies.
About Ho Hup
Ho Hup Construction Company Berhad is engaged in foundation
engineering, civil engineering, building contracting works and
hire of plant and machinery. The Company operates in four
segments: construction, which is engaged in foundation and civil
engineering, building contracting works and engineering,
procurement, construction and commissioning of pipeline system;
property development, which includes the development of
residential and commercial properties, manufacturing, which
includes manufacturing and distribution of ready-mixed concrete,
and other business segment, which represents hire of plant and
machinery. The Company's subsidiaries include H2Energy
Corporation Sdn Bhd, Tru-Mix Concrete Sdn Bhd, Bukit Jalil
Development Sdn Bhd and Ho Hup Equipment Rental Sdn Bhd.
* * *
Ernst & Young expressed a disclaimer opinion in the Company's 2007
audited financial statements. As a result, the Company became an
affected listed issuer pursuant to paragraph 2.1 of the PN17/2005.
The auditors cited factors that indicate the existence of material
uncertainties, which may cast significant doubt on the ability of
the group and the company to continue as a going concern.
LIMAHSOON BERHAD: Sha Thiam Fook Appointed as Receiver
------------------------------------------------------
Limahsoon Berhad disclosed that Sha Thiam Fook of Messrs. Sha Tan
Consulting Sdn Bhd on November 3, 2010, was appointed by Bank
Pertanian Malaysia Berhad as Receiver and Manager of the property
of Limahsoon under the powers contained in the Debenture dated
March 3, 2008, and two Debentures both dated June 12, 2008.
The unaudited net book value of the affected assets as at June 30,
2010, is MYR966,000.
The Company had issued a Debenture dated March 3, 2008, and two
debentures both dated June 12, 2008, in favor of Bank Pertanian
Malaysia Berhad as part of the security in respect of credit
facilities totaling MYR100,000,000. The appointment of the
receiver is pursuant to the Debenture.
The Company said it is unable to ascertain the expected losses
that would arise from the appointment since it has ceased
operations.
About Limahsoon Berhad
Limahsoon Berhad (KUL:LIMAHSN) -- http://www.limahsoon.com/-- is
a Malaysia-based company engaged in investment holding and the
provision of management services to its subsidiaries. The Company
operates in two business segments: manufacturing of laminated
board, which includes pressure treatment, kiln drying and the
manufacture of laminated boards and mouldings, and sawmilling,
which includes sawmilling of green rubberwood.
Limahsoon Berhad has been classified a Practice Note No. 17
company based on the criteria set by the Bursa Malaysia Securities
Bhd after as the Company defaulted in payment and is unable to
provide a Solvency Declaration to Bursa Securities.
LUSTER INDUSTRIES: Has Until Feb. 28 to Submit Regularization Plan
------------------------------------------------------------------
Bursa Securities has granted Luster Industries Bhd an extension of
time until February 28, 2011, to submit the Company's
regularization plan to the regulatory authorities for approval
provided that the definitive agreements are signed between the
Company and the vendors of the Target Companies on or before
November 30, 2010.
The decision of Bursa Securities was after due consideration of
all facts and circumstances of the case, including:
(a) the Company had entered into a Memorandum of Understanding
in respect of the acquisition of Unique Diamond Sdn Bhd
and H&P Plastic Sdn Bhd on August 30, 2010; and
(b) the Company's representation on the timeline to execute the
sale and purchase agreements for the Proposed Acquisition
of the Target Companies.
Bursa Securities further decided that the extension of time is
without prejudice to Bursa Securities' right to exercise its
powers under paragraph 8.14C(1) of the Listing Requirements of
Bursa Securities read together with paragraph 4.1 of Practice Note
29 of the Main Market Listing Requirements to proceed to de-list
the securities of the Company in the event:
(i) the Company fails to sign and announce the definitive
agreements with the vendors of the Target Companies on
or before November 30, 2010;
(ii) the Company fails to submit the regularisation plan to
the regulatory authorities for approval within the
Extended Timeframe;
(iii) the Company fails to obtain the approval for the
implementation of its regularisation plan and does not
appeal within the timeframe (or extended timeframe, as
the case may be) prescribed to lodge an appeal;
(iv) the Company does not succeed in its appeal; or
(v) the Company fails to implement its regulatisation plan
within the timeframe or extended timeframes stipulated
by the relevant authorities.
Upon occurrence of any of the events set out in (i) to (v) above,
the securities of the Company shall be removed from the Official
List of Bursa Securities upon the expiry of seven (7) market days
from the date the Company is notified by Bursa Securities or such
other date as may be specified by Bursa Securities.
In arriving at the decision, the LC had considered, among others,
these factors:
(1) LIB has failed to regularise the Company's financial
condition in accordance with paragraph 8.14C of the LR
and Practice Note No. 17 and within the extended timeframe
granted by Bursa Securities;
(2) All PN17 companies are required to regularize their
financial condition and level of operations expeditiously
within the timeframes prescribed in paragraph 8.14C of the
LR and PN17 or extended timeframes as may be granted by
Bursa Securities;
(3) The requirement for companies to have an adequate level of
financial condition and level of operations serves to
ensure that companies listed on the Official List are of a
certain minimum quality. Companies that have a minimum
level of financial condition and level of operations serve
to preserve and sustain market integrity and investors'
confidence; and
(4) In the opinion of the LC, adequate time and opportunity has
been accorded to LIB to regularize the Company's financial
condition since the Company's First Announcement on May 2,
2008.
About Luster Industries
Luster Industries Berhad is a Malaysia-based investment holding
company that provides management services to its subsidiaries.
The company is principally engaged in the manufacture of
precision plastic parts and components, and sub assembly and
full assembly of plastic parts and products. During the year
ended December 31, 2005, the company acquired Mctronic Plastic
Sdn. Bhd., Mature Step International Limited and Poly Link
Limited. On June 29, 2006, the company disposed of its
investment in its joint venture, Luster Nakazawa R&D Sdn Bhd,
representing 51% of Luster Nakazawa R&D Sdn Bhd.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
May 8, 2008, the company was considered as an affected listed
issuer of the Practice Note No. 17/2005 of Bursa Malaysia
Securities Berhad as the external auditors have expressed a
modified opinion on the company's going concern and on its
consolidated shareholders' equity amounting to MYR25,191,597,
which is less than 50% of its total issued and paid-up share
capital of MYR61,183,000.
OILCORP BERHAD: Obtains Restraining Order Against Bursa
-------------------------------------------------------
Oilcorp Berhad said that Bursa Malaysia Securities Berhad on
October 28, 2010, decided to reject the Company's appeal against
de-listing pursuant to paragraph 8.04(5)(b) of Bursa Securities
Main Market Listing Requirements.
Oilcorp had on October 11, 2010, submitted an appeal against Bursa
Securities's decision to delist the Company's securities on
October 14, 2010.
However, in the light of the restraining order obtained by the
Company on November 9, 2010, to restrain Bursa Securities from de-
listing the Company, the securities of the Company will only be
removed at a date to be notified later.
About Oilcorp Berhad
Oilcorp Berhad is a Malaysia-based investment holding company.
The Company operates in five segments: oil and gas and
engineering, which includes engineering, procurement, construction
and contract-related services in oil and gas related industries;
property investment/resort, which includes property and resort
operations and related activities and services; investment
holding, which includes investment holding; fisheries, which
includes deep sea fishing operations and related activities, and
overseas special project (construction), which includes
engineering, procurement, construction and contract-related
sources in non oil and gas industries related industries. Its
wholly owned subsidiaries include Oil-Line Engineering &
Associates Sdn. Bhd., D'Tiara Corp Sdn. Bhd., Layar Visi Sdn. Bhd.
and D'Tiara Corp Limited.
Oilcorp Berhad has been classified as an Affected Listed Issuer
under Practice Note 17/2005 of Bursa Malaysia Securities Berhad
as the Company is unable to provide a solvency declaration to
Bursa Securities following a default in its interest payments
pursuant to Practice Note 1/2001.
====================
N E W Z E A L A N D
====================
CRAFAR FARMS: IRD Refuses to Give GST Refunds to Chinese Buyer
--------------------------------------------------------------
Nick Krause at BusinessDay.co.nz reports that the Inland Revenue
is refusing to hand over GST refunds of NZ$24.4 million to UBNZ
Assets Holdings, the company leading the bid to buy 16 Crafar
dairy farms from the receiver, until it conducts further
investigations.
BusinessDay.co.nz relates Nick Malarao, IRD's lawyer, told the
High Court at Auckland that the company, one of several in the
UBNZ group belonging to businesswoman May Wang, filed two GST
returns for the March and May GST periods claiming refunds of
NZ$24.4 million "in respect of the Crafar Farm transaction".
According to BusinessDay.co.nz, Mr. Malarao said the law was
complex in this area but property buyers could claim GST if they
had a sales agreement in place.
The Crafar farms were sold under a May agreement for
NZ$213.2 million, pending Overseas Investment Office approval.
About Crafar Farms
Crafar Farms, New Zealand's largest family owned dairy business,
runs about 20,000 milking cows, and carries about 10,000 of other
stock. The company employs 200 staff.
Crafar Farms was placed in receivership by its lenders Westpac
Banking Corp., Rabobank Groep and PGG Wrightson Finance. The
banks are owed around NZ$200 million and put KordaMentha partners
Michael Stiassny and Brendon Gibson in as receivers after Crafar
Farms breached covenants on its loans.
The New Zealand Herald said CraFarms' banks have been working with
the Ministry of Agriculture and Forestry, Federated Farmers and
Fonterra to ease the Crafars out of their business. This follows
multiple convictions for environmental lapses and animal neglect
in recent years and the revelation on September 28, 2009, from
interest.co.nz of animal neglect on one of its large farms in the
King Country near Benneydale.
=====================
P H I L I P P I N E S
=====================
LEGACY GROUP: PDIC Pays PHP11 Billion in Legacy Claims
------------------------------------------------------
The Philippine Deposit Insurance Corporation disclosed that as of
October 31, 2010, it had paid a total of PHP11 billion in deposit
insurance to depositors of the 12 closed banks collectively known
as the Legacy Banks. This represents 77.6% of the total amount of
claims filed which registered at PHP14.2 billion. Meanwhile,
claims aggregating PHP788 million or 5.5% of the amount of filed
claims were denied. More than half of the denied claims were for
non-existent accounts. The remainder was from accounts emanating
form fraudulent transactions.
Claims that had not been paid were for those that were document
deficient or put on hold for investigation or legal issues. The
payment for document deficient claims will depend on depositor's
compliance with the requirements for these claims. Letters have
been sent to depositors/claimants concerned. For claims subject
of further investigation, these may either be paid, or denied,
depending on the outcome of the investigation.
Claims processing was conducted with assistance from the Bangko
Sentral ng Pilipinas-accredited audit firms Constantino
Guadalquiver and Company, and Acyatan and Company. This involved
combing through about 2,000 boxes of bank records in disarray and
painstakingly piecing together available documents to ensure that
only valid claims are paid. The Legacy banks were closed almost
simultaneously and placed under PDIC receivership in December
2008. The said banks and other affiliated companies belonging to
the Legacy Group were subject of congressional inquiry in 2009 due
to indications of widespread fraud. PDIC was cautioned by
lawmakers to exercise diligence and prudence in paying Legacy
claims.
PDIC President Jose C. Nograles said that the Corporation
prudently and diligently processed claims as required by law. He
said that the high percentage of paid claims is consistent with
the findings of forensic experts from Punongbayan and Araullo, an
affiliate of international audit firm, Grant and Thornton that in
general, funds did flow into the banks as deposits. Although some
fraudulent transactions were uncovered, a large portion of the
accounts were found to be valid and hence were eligible for
deposit insurance. This included accounts initially tagged as
"doubtful", and subsequently validated as a result of judicious
search for documents that were either missing or disarray.
Mr. Nograles however added that based on the P & A findings and
PDIC investigations, 26 cases have been filed so far against
owners and officers of the Legacy banks. As stated in PDIC's
complaints, the fraud was committed not so much in deposit-taking
activities, but in the siphoning of funds generated from the
public.
About Legacy Group
Headquartered in Quezon City, Philippines, The Legacy Group --
http://www.legacy.com.ph/-- was a conglomerate of banks and pre-
need companies. The banks offered various financial products and
the pre-need firms offered pension, education and memorial plans.
Other members of The Group provided credit cards, micro-lending
and automotive financing services.
* * *
The Bangko Sentral ng Pilipinas in 2008 placed 13 Legacy-member
rural banks under the receivership of the Philippine Deposit
Insurance Corporation due to insolvency. The banks under
receivership are Rural Bank of Paranaque; Rural Bank of San Jose
(in Batangas); Pilipino Rural Bank (in Cebu); Rural Bank of Bais
(in Negros Oriental province); Bank of East Asia (in Cebu); First
Interstate Bank (Rural Bank of Kananga, Leyte), Inc.; Philippine
Countryside Bank (in Cebu); Dynamic Bank (Rural Bank of Calatagan,
in Batangas); San Pablo City Development Bank; Nation Bank (in
Bacolod City); Rural Bank of DARBCI (General Santos); Bicol
Development Bank (Legaspi City); and the Rural Bank of Carmen
(Cebu).
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 27, 2009, the Philippine Daily Inquirer said that the Legacy
Group allegedly amassed between PHP15 billion and PHP25 billion in
deposits over the last three years due to an aggressive marketing
scheme, which promised depositors 20% in annual returns. To
address risk concerns, the Inquirer stated, the cash deposits
were spread out through the Legacy chain of banks to keep each
deposit within the maximum limit of the PDIC.
LEGACY GROUP: Forensic Experts Confirm Siphoning of Funds
---------------------------------------------------------
The Philippine Deposit Insurance Corporation said that after
months of forensic audit involving the tracing of funds flows
through web-like transactions in the 12 closed banks collectively
known as the Legacy Banks, forensic experts from Punongbayan and
Araullo, an affiliate of international audit firm Grant Thornton
concluded that in general, funds did flow into the banks as
deposits.
According to the PDIC, although some fraudulent and suspicious
transactions were uncovered, a large portion of accounts were
found to be valid. Suspected fraud occurred not so much in the
deposit-taking activities but in the siphoning of funds generated
from the public. Punongbayan and Araullo was engaged by the PDIC
to assist in forensic audit of the Legacy banks which were almost
simultaneously closed and placed under PDIC receivership in
December 2008.
PDIC President Jose C. Nograles said that Punongbayan and Araullo
findings together with results of PDIC investigations led to the
filing of 26 cases against Legacy banks owners and officers
amounting to PHP8.4 billion. As indicated in the complaints
filed, the Legacy banks aggressively solicited deposits from the
public by enticing them with double your money promotions and
other freebies, then siphoned off those deposits. Mr. Nograles
said that it was moral hazard in its most despicable form, because
the risk undertaken by depositors who were lured by the promise of
extraordinarily high yields and freebies had been effectively
transferred to PDIC which had so far paid P11 billion in deposit
insurance.
The PDIC President said that moving forward, the deposit insurer
had successfully pushed for enhanced authorities in the amended
PDIC Charter to mitigate moral hazard. It had stepped up vigilance
against potential copycats. He said that PDIC had issued new
Regulatory Issuances (RI) on record keeping and beneficial
ownership of accounts. RIs on unsafe and unsound banking
practices and exclusions on deposit insurance coverage are being
crafted.
Last year, the Legacy banks and other related companies were
subject of Congressional investigations due to suspicions of
massive fraud. Earlier, a sizeable number of accounts were tagged
as doubtful because missing documents and banks records in
disarray raised suspicions about those accounts. Judicious search
enabled PDIC to piece together evidence that showed funds were
actually deposited.
PHILIPPINE AIRLINES: Union Ready to Launch Strike Next Week
-----------------------------------------------------------
The Philippine Daily Inquirer reports that a labor union of
Philippine Airlines Wednesday served notice that it was prepared
to hold a strike as early as next week as it accused the labor
secretary of issuing an invalid order legalizing the retrenchment
of 2,600 airline employees.
The Inquirer relates PAL Employees' Association (PALEA) president
Gerry Rivera declared the readiness of the union to fight for its
members' security of tenure.
"(Labor) Secretary (Rosalinda) Baldoz's decision forces us to
choose between two false choices . . . termination from regular
employment or strike. We will strike," Mr. Rivera said at a
public hearing of the House committee on labor and employment,
according to the Inquirer.
According to the Inquirer, Mr. Rivera said the spin-off of PAL's
in-flight catering, airport services and call center reservation
operations to third party service providers was just the "first of
a series of outsourcing that PAL intends to implement" since it
had announced the outsourcing of other services such as medical
services and accounting.
"We assert that the outsourcing . . . is invalid and constituted
unfair labor practice," Mr. Rivera, citing three reasons --
outsourcing is banned by the existing collective bargaining
agreement; this is not justified by the PAL's financial situation;
and it will ultimately dissolve PALEA, the Inquirer relates.
While vowing to run to the courts and even going up to the Supreme
Court to contest Ms. Baldoz's ruling, the Inquirer notes,
Mr. Rivera said that as authorized by the PALEA board the "strike
can happen as early as next week."
"Before the end of the week we may conduct strike balloting, and
by Friday next week we shall be ready with the strike," he said,
warning of a "national crisis" if the strike ensued, the Inquirer
relates.
Mr. Rivera said the soon-to-be-terminated PAL employees
represented 70% of PALEA's membership, including 62% of the union
leadership, the Inquirer adds.
About Philippine Airlines
Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline. It was the first airline in
Asia and the oldest of those currently in operation. With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights. First taking off in
1941, the carrier has grown into a fleet of about 40 aircraft
(including five Boeing 747-400s) flying to more than 20 domestic
points and about 30 foreign destinations.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
April 21, 2010, the Manila Bulletin said that the Philippine
Airlines is to spin off its three non-core units as a last resort
to avoid bankruptcy. PAL will spin off its three non-core units:
inflight catering services; airport services, including ground
handling, cargo handling and ramp handling; and call center
reservations, the Manila Bulletin said. The PAL Employees Union
estimated that 2,000 to 4,000 employees assigned to those
departments could be retired. PAL said competition from overseas
carriers, slower global economic growth, and higher oil prices had
prompted the airline to slash its non-core businesses. The
carrier had approached several investors but failed to secure
financial help, and equity had dropped to a worrisome US$1.1
million as of February 2010, according to the Manila Standard.
The TCR-AP, citing BusinessWorld Online, reported on July 28,
2010, that Philippine Airlines announced a narrower loss for its
fiscal year that ended March 2010 to $14.3 million, from the
previous year's $297.8 million, but warned of still weak demand
for international flights.
PHILIPPINE AIRLINES: More Than Willing to Disclose Financial Books
------------------------------------------------------------------
GMANews.TV reports that Philippine Airlines is "more than willing"
to open its financial books and submit them to Congress for
scrutiny to prove that it is losing money and needs to retrench
2,600 of its employees.
"We are ready to submit, we have submitted today our audited
financial statement for the last three years. We are more than
willing to submit whatever documents the committee will require,"
GMANews.TV quotes Jaime Bautista, PAL's president and chief
executive officer, as saying after a hearing at the House of
Representatives on Thursday.
GMANews.TV relates that during the hearing by the House labor
committee on the labor row between the PAL management and its
employees, Surigao del Sur Rep. Philip Pichay asked the flag
carrier to also submit its interim financial statement for January
to September 2010 operations.
According to GMANews.TV, Mr. Bautista said PAL suffered
substantial losses in the past years. In fact, he said, PAL's
main competitor is now bigger than them in terms of domestic
operations.
"We lost PHP15 billion in the last two years. There were years
that we gained money, there were years that we lost money. But
there were more accumulated losses than profit," he said,
GMANews.TV adds.
Mr. Bautista, GMANews.TV notes, said this is the reason why they
decided to reduce their capacity and outsource its services such
as catering and airport services and call center reservations.
GMANews.TV reports that the Philippine Airlines Employees
Association (PALEA) said the flag carrier was just concealing its
true financial position to terminate workers and resort to the
more economical employment outsourcing.
GMANews.TV says Mr. Bautista said PAL even has to borrow money for
the separation pay of the 2,600 employees that will be retrenched
due to the outsourcing.
According to GMANews.TV, Mr. Bautista said the sale of the three
non-core units was only done as a last resort after 14 major cost-
cutting measures proved inadequate to guarantee PAL's continued
operations. He also insisted that PAL is not engaging in
contractualization amid the hiring of third party service
providers, GMANews.TV adds.
Also during the hearing, GMANews.TV reports, Labor Secretary
Rosalinda Baldoz said she sees nothing wrong with her decision to
uphold the PAL management's prerogative to restructure its
organization, saying she remains convinced that it is "based on
solid grounds."
GMANews.TV relates Ms. Baldoz also ruled that the termination of
affected employees as a result of the spinoff is in accordance
with law, and that PAL is not liable for any unfair labor practice
as a result of said termination.
About Philippine Airlines
Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline. It was the first airline in
Asia and the oldest of those currently in operation. With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights. First taking off in
1941, the carrier has grown into a fleet of about 40 aircraft
(including five Boeing 747-400s) flying to more than 20 domestic
points and about 30 foreign destinations.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
April 21, 2010, the Manila Bulletin said that the Philippine
Airlines is to spin off its three non-core units as a last resort
to avoid bankruptcy. PAL will spin off its three non-core units:
inflight catering services; airport services, including ground
handling, cargo handling and ramp handling; and call center
reservations, the Manila Bulletin said. The PAL Employees Union
estimated that 2,000 to 4,000 employees assigned to those
departments could be retired. PAL said competition from overseas
carriers, slower global economic growth, and higher oil prices had
prompted the airline to slash its non-core businesses. The
carrier had approached several investors but failed to secure
financial help, and equity had dropped to a worrisome US$1.1
million as of February 2010, according to the Manila Standard.
The TCR-AP, citing BusinessWorld Online, reported on July 28,
2010, that Philippine Airlines announced a narrower loss for its
fiscal year that ended March 2010 to $14.3 million, from the
previous year's $297.8 million, but warned of still weak demand
for international flights.
===========
T A I W A N
===========
KING'S TOWN: Fitch Gives Positive Outlook; Affirms 'BB+' Rating
---------------------------------------------------------------
Fitch Ratings has revised the rating Outlook on both the Long-term
Issuer Default Rating and National Long-term Rating of King's Town
Bank to Positive from Stable. At the same time, the agency has
affirmed all its ratings. A detailed list of all ratings actions
can be found at the end of this release.
The revision of KTB's Outlook to Positive reflects steps taken by
the bank which have improved loan quality and underwriting
standards. It also considers new strategies implemented by the
bank, which appear to place it on a path to achieve prudent growth
and diversification.
KTB's IDR and Individual rating reflect its ability to maintain
strong core capitalization and sound liquidity, as well as ongoing
improvement in asset quality. However, its ratings have been
constrained by a relative lack of diversification and the bank's
small franchise, which is geographically concentrated in south
Taiwan. While the agency considers improved earnings quality
through diversification coupled with prudent asset growth to be
positive factors for its long-term ratings, any material weakening
of core capital and/or increased risk-taking behavior would likely
result in KTB's ratings not being upgraded.
KTB's strategic intention is to develop into a niche financier in
Taiwan's financial industry with a focus on risk-adjusted returns
by leveraging on relationships with its core customer base in its
home market. The agency views KTB's strategy positively, and
believes the bank's higher loan spreads could continue to be
supported by its focused approach, given proper execution.
The bank's profitability improved notably in 9M10, with an
annualized return on equity of 15.0%, compared with 0.2% and 0.5%
in 2009 and 2008 respectively. This much improved earning
performance was due mainly to a substantial decline in provision
charges, while higher net interest income also helped to lift
KTB's earnings. Fitch expects KTB to deliver reasonably good
earnings in H210 and 2011, driven by a moderate increase in net
interest income arising from possible interest rate increases by
the central bank, higher fees and anticipation the bank will
continue to manage credit costs effectively.
The bank's loan book quality is good. Its non-performing loans
were low at 0.5% at end-Q310 and were more than fully provided
for, with reserves at 2.9x NPLs. Furthermore, new formations of
NPLs have been minimal since 2009. KTB is strongly capitalized,
with a Tier 1 ratio of 12.3% and a capital adequacy ratio of 13.0%
at end-Q310. Liquidity is also deemed to be satisfactory, thanks
to its well-established franchise in south Taiwan. The bank's
loan-to-deposit ratio was reasonably low at 74.2% while its
liquidity reserve was adequate at 20.2% at end-H110, above the
regulatory requirement of 7%.
KTB was originally a Tainan-based cooperative savings company
established in 1948, and was listed on the Taiwan Stock Exchange
in 1983. Through a TWD3.6 billion rights issue in 2005 to
recapitalize the bank, the Tsai family and their investment
associates emerged as KTB's largest shareholder, with an overall
stake of 30.9%, and appointed two of the bank's six board members.
King's Town Bank
-- Long-term foreign currency IDR affirmed at 'BB+'; Outlook
revised to Positive from Stable;
-- Short-term foreign currency IDR affirmed at 'B';
-- National Long-term rating affirmed at 'A-(twn)'; Outlook
revised to Positive from Stable;
-- National Short-term rating affirmed at 'F1(twn)';
-- Individual rating affirmed at 'C/D';
-- Support rating affirmed at '5'; and
-- Support Rating Floor affirmed at 'NF'.
===============
X X X X X X X X
===============
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
ADVANCE HEAL-NEW AHGN 16.93 -8.23
AUSTON RESOURCE AZT 469.54 -748.94
AUSTAR UNITED AUN 502.05 -284.60
AUSTRAILIAN Z-PP AZCCA 77.74 -2.57
AUSTRALIAN ZIRC AZC 77.74 -2.57
AUTRON CORP LTD AAT 32.39 -13.42
BCD RESOURCES OP BCO 22.09 -61.19
BCD RESOURCES-PP BCOCC 22.09 -61.19
BIRON APPAREL LT BIC 19.71 -2.22
CENTRO PROPERTIE CNP 14,253.26 -825.84
CHALLENGER INF-A CIF 2,161.41 -339.11
CHEMEQ LTD CMQ 25.19 -24.25
ELLECT HOLDINGS EHG 18.25 -15.49
HEALTH CORP LTD HEA 13.85 -0.97
HYRO LTD HYO 11.81 -5.15
IVANHOE AUST LTD IVA 49.44 -6.51
JAMES HARDIE-CDI JHX 2,132.00 -26.70
JAMES HARDIE NV JHXCC 2,132.00 -26.70
MAC COMM INFR-CD MCGCD 8,104.42 -103.34
MAVERICK DRILLIN MAD 24.65 -1.30
MISSION NEWENER MBT 32.23 -21.47
NATURAL FUEL LTD NFL 19.38 -121.51
ORION GOLD NL ORN 12.37 -24.99
POWERLAN LTD PWR 30.84 -5.94
RIVERCITY MOTORW RCY 386.88 -809.14
SCIGEN LTD-CUFS SIE 69.94 -29.79
SHELL VILLAGES A SVC 13.47 -1.66
TAKORADI LTD TKG 13.99 -0.41
THOMAS BRYSON TBI 44.32 -54.67
VERTICON GROUP VGP 10.08 -29.12
CHINA
BAOCHENG INVESTM 600892 22.47 -3.17
CHANGAN INFO-A 600706 20.37 -7.96
CHENGDE DALU -B 200160 26.84 -6.15
CHENGDU UNION-A 693 39.91 -14.85
CHINA KEJIAN-A 35 85.26 -186.04
DATONG CEMENT-A 673 20.42 -2.75
DONGGUAN FANGD-A 600656 22.37 -60.70
DONGXIN ELECTR-A 600691 13.31 -20.95
GUANGDONG ORIE-A 600988 11.79 -7.36
GUANGMING GRP -A 587 46.84 -39.50
GUANGXIA YINCH-A 557 30.00 -31.75
HEBEI BAOSHUO -A 600155 114.87 -390.50
HEBEI JINNIU C-A 600722 231.07 -236.93
HUASU HOLDINGS-A 509 81.80 -4.82
HUNAN ANPLAS CO 156 39.16 -65.29
JIANGSU CHINES-A 805 12.46 -12.21
JINCHENG PAPER-A 820 255.17 -31.31
JINHUA GROUP-A 818 334.60 -45.66
LIAOYUAN DEHENG 600699 120.45 -31.43
MUDAN AUTOMOBI-H 8188 36.26 -0.61
NINGBO YIDONG-H 8249 43.21 -33.74
QINGHAI SUNSHI-A 600381 108.89 -24.71
SHAANXI QINLIN-A 600217 233.75 -37.00
SHANG BROAD-A 600608 69.72 -20.98
SHANG HONGSHENG 600817 15.37 -460.74
SHANGHAI WORLDBE 600757 154.83 -257.96
SHENZ CHINA BI-A 17 24.86 -272.59
SHENZ CHINA BI-B 200017 24.86 -272.59
SHENZHEN DAWNC-A 863 26.90 -151.27
SHENZHEN KONDA-A 48 116.05 -0.97
SHENZHEN SHENX-A 34 21.92 -118.85
SHENZHEN ZERO-A 7 51.44 -6.96
SHIJIAZHUANG D-A 958 216.46 -76.14
SICHUAN DIRECT-A 757 103.56 -138.84
SICHUAN GOLDEN 600678 233.64 -37.42
TAIYUAN TIANLO-A 600234 52.47 -27.08
TIANJIN MARINE 600751 78.09 -63.86
TIANJIN MARINE-B 900938 78.09 -63.86
TIBET SUMMIT I-A 600338 83.10 -1.66
TOPSUN SCIENCE-A 600771 155.93 -158.88
WINOWNER GROUP C 600681 11.13 -72.07
WUHAN BOILER-B 200770 269.09 -143.61
WUHAN GUOYAO-A 600421 11.02 -24.12
XIAMEN OVERSEA-A 600870 338.03 -139.08
XINHUA FINANCE 9399 35.80 -1.17
YANBIAN SHIXIA-A 600462 208.72 -14.53
YIBIN PAPER IN-A 600793 111.63 -0.13
YUEYANG HENGLI-A 622 36.02 -16.09
YUNNAN MALONG-A 600792 122.13 -50.67
ZHANGJIAJIE TO-A 430 45.95 -4.59
HONG KONG
ASIA TELEMEDIA L 376 16.62 -5.37
ASIAN CAPITAL RE 8025 21.97 -0.68
BUILDMORE INTL 108 13.08 -43.45
CHINA HEALTHCARE 673 37.98 -2.81
CMMB VISION HOLD 471 41.31 -5.11
COSMO INTL 1000 120 83.67 -25.33
CROSBY CAPITAL 8088 13.84 -14.46
EGANAGOLDPFEIL 48 557.89 -132.86
FULBOND HLDGS 1041 54.53 -24.07
HAO WEN HOLDINGS 8019 22.57 -0.46
IMAGI INTERNATIO 585 11.29 -21.23
JIAN EPAYMENT 8165 14.66 -1.12
MELCOLOT LTD 8198 63.25 -34.53
MITSUMARU EAST K 2358 21.23 -9.04
NEW CITY CHINA 456 112.20 -14.59
NGAI LIK INDL 332 21.16 -3.64
PAC PLYWOOD 767 68.66 -12.31
PALADIN LTD 495 155.31 -10.91
PCCW LTD 8 5,350.25 -416.24
PROVIEW INTL HLD 334 314.87 -294.85
SINO RESOURCES G 223 25.07 -39.10
TACK HSIN HLDG 611 27.01 -62.70
TLT LOTTOTAINMEN 8022 25.21 -8.78
TONIC IND HLDGS 978 56.17 -54.52
INDONESIA
ASIA PACIFIC POLY 485.05 -844.50
ERATEX DJAJA ERTX 11.30 -18.23
JAKARTA KYOEI ST JKSW 28.61 -45.23
MITRA INTERNATIO MIRA 990.92 -217.75
MITRA RAJASA-RTS MIRA-R2 990.92 -217.75
MULIA INDUSTRIND MLIA 360.87 -368.54
PANASIA FILAMENT PAFI 45.10 -8.20
PANCA WIRATAMA PWSI 30.32 -37.84
PRIMARINDO ASIA BIMA 12.22 -21.89
STEADY SAFE TBK SAFE 11.85 -5.88
SURABAYA AGUNG SAIP 265.80 -83.61
UNITEX TBK UNTX 16.09 -16.28
INDIA
ALCOBEX METALS AML 16.59 -21.47
ARTSON ENGR ART 15.63 -1.61
ASHIMA LTD ASHM 63.65 -55.81
ATV PROJECTS ATV 60.46 -55.04
BALAJI DISTILLER BLD 66.32 -25.40
BELLARY STEELS BSAL 451.68 -108.50
BHAGHEERATHA ENG BGEL 22.65 -28.20
CAMBRIDGE SOLUTI CAMB 156.75 -46.79
CFL CAPITAL FIN CEATF 15.35 -46.89
COMPUTERSKILL CPS 14.90 -7.56
CORE HEALTHCARE CPAR 185.36 -241.91
DCM FINANCIAL SE DCMFS 16.06 -9.47
DIGJAM LTD DGJM 98.77 -14.62
DISH TV INDIA DITV 422.08 -127.61
DUNCANS INDUS DAI 133.65 -205.38
GANESH BENZOPLST GBP 43.99 -24.57
GEM SPINNERS LTD GEMS 15.23 -0.11
GLOBAL BOARDS GLB 14.98 -7.51
GSL INDIA LTD GSL 37.04 -42.34
GSL NOVA PETROCH GSLN 44.39 -0.93
GUJARAT SIDHEE GSCL 59.44 -0.66
HARYANA STEEL HYSA 10.83 -5.91
HENKEL INDIA LTD HNKL 102.05 -10.24
HFCL INFOTEL LTD HFCL 173.52 -101.57
HIMACHAL FUTURIS HMFC 406.63 -210.98
HINDUSTAN PHOTO HPHT 68.94 -1,147.18
HINDUSTAN SYNTEX HSYN 14.15 -3.66
HMT LTD HMT 142.67 -386.80
ICDS ICDS 13.30 -6.17
INDIA FOILS LTD IF 54.77 -2.70
INTEGRAT FINANCE IFC 45.56 -43.27
ITI LTD ITI 1,116.21 -0.80
JCT ELECTRONICS JCTE 122.54 -50.00
JD ORGOCHEM LTD JDO 10.46 -1.60
JENSON & NIC LTD JN 17.91 -84.78
JIK INDUS LTD KFS 20.63 -5.62
JK SYNTHETICS JKS 13.51 -3.03
JOG ENGINEERING VMJ 50.08 -10.08
KALYANPUR CEMENT KCEM 37.45 -45.90
KERALA AYURVEDA KRAP 13.99 -1.18
KINGFISHER AIR KAIR 1,781.30 -861.06
LLOYDS FINANCE LYDF 23.77 -10.87
LLOYDS STEEL IND LYDS 415.66 -63.93
MAHA RASHTRA APE MHAC 24.13 -14.27
MILLENNIUM BEER MLB 36.39 -3.20
MILTON PLASTICS MILT 18.31 -40.44
NICCO UCO ALLIAN NICU 32.23 -71.91
NK INDUS LTD NKI 49.04 -4.95
ORIENT PRESS LTD OP 16.70 -0.09
PANCHMAHAL STEEL PMS 51.02 -0.33
PARASRAMPUR SYN PPS 111.97 -317.11
PAREKH PLATINUM PKPL 61.08 -88.85
PEACOCK INDS LTD PCOK 11.40 -14.40
PIRAMAL LIFE SC PLSL 45.82 -32.69
POLAR INDS LTD PLI 11.61 -22.28
RAMA PHOSPHATES RMPH 34.07 -1.19
RATHI ISPAT LTD RTIS 44.56 -3.93
RELIGARE TECHNOV RTCL 44.13 -1.46
REMI METALS GUJA RMM 102.64 -5.29
RENOWNED AUTO PR RAP 14.12 -1.25
ROLLATAINERS LTD RLT 22.97 -22.24
ROYAL CUSHION RCVP 20.62 -20.95
SCOOTERS INDIA SCTR 13.29 -0.58
SHALIMAR WIRES SWRI 24.49 -49.90
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE GANESH FOR SGFO 44.50 -2.89
SHREE RAMA MULTI SRMT 63.73 -52.93
SIDDHARTHA TUBES SDT 70.93 -12.09
SIL BUSINESS ENT SILB 12.46 -19.96
SOUTHERN PETROCH SPET 1,584.27 -4.80
SPICEJET LTD SJET 220.03 -76.12
STERLING HOL RES SLHR 52.91 -0.63
STI INDIA LTD STIB 28.05 -8.04
TAMILNADU TELE TNT 12.82 -5.15
TATA TELESERVICE TTLS 1,069.83 -154.99
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 24.39 -8.90
TUTICORIN ALKALI TACF 14.15 -11.20
UNIFLEX CABLES UFC 45.05 -0.90
UNIFLEX CABLES UFCZ 45.05 -0.90
UNIWORTH LTD WW 145.71 -114.87
USHA INDIA LTD USHA 12.06 -54.51
VENTURA TEXTILES VRTL 14.25 -0.33
WINDSOR MACHINES WML 14.50 -28.14
WIRE AND WIRELES WNW 115.34 -34.49
JAPAN
CREDIT ORG S&M 8489 97.06 -9.97
DAIWASYSTEM CO 8939 607.68 -259.76
DPG HOLDINGS INC 3781 11.77 -3.99
HARAKOSAN CO 8894 225.69 -62.68
JIPANGU HOLDINGS 2684 15.05 -8.38
KNT 9726 1,058.18 -13.37
L CREATE CO LTD 3247 42.34 -9.15
LCA HOLDINGS COR 4798 51.30 -2.57
NIHON INTER ELEC 6974 218.08 -50.73
PROPERST CO LTD 3236 305.90 -330.20
RAYTEX CORP 6672 41.66 -28.52
SAIKAYA CO LTD 8254 375.83 -72.59
SHINWA OX CORP 2654 41.06 -24.43
SHIOMI HOLDINGS 2414 190.97 -22.81
SUMITOMO MITSUI 1821 2,382.17 -98.97
TERRANETZ CO LTD 2140 11.63 -4.29
KOREA
AJU MEDIA SOL-PF 44775 13.82 -1.25
DAHUI CO LTD 55250 186.00 -1.50
DAISHIN INFO 20180 740.50 -158.45
KEYSTONE GLOBAL 12170 10.61 -0.74
KUKDONG CORP 5320 51.19 -1.39
KUMHO INDUS-PFD 2995 5,837.32 -967.28
KUMHO INDUSTRIAL 2990 5,837.32 -967.28
ORICOM INC 10470 82.65 -40.04
SAMT CO LTD 31330 200.83 -152.09
SEOUL MUTL SAVIN 16560 874.79 -34.13
TAESAN LCD CO 36210 296.83 -91.03
TONG YANG MAGIC 23020 355.15 -25.77
YOUILENSYS CORP 38720 166.70 -12.34
MALAYSIA
AXIS INCORPORATI AXIS 39.22 -86.70
GULA PERAK BHD GUP 91.03 -38.57
HO HUP CONSTR CO HO 68.68 -7.10
LCL CORP BHD LCL 45.27 -111.27
LIMAHSOON BHD LIMA 26.52 -1.56
LUSTER INDUSTRIE LSTI 22.97 -1.72
MEMS TECHNOLOGY MEMS 10.41 -20.77
NGIU KEE CO-BHD NKC 22.98 -0.16
OILCORP BHD OILC 91.94 -63.88
TRACOMA HOLDINGS TRAH 72.64 -6.19
NEW ZEALAND
DORCHESTER PAC DPC 77.28 -2.01
PHILIPPINES
APEX MINING 'B' APXB 45.84 -20.95
APEX MINING-A APX 45.84 -20.95
BENGUET CORP 'B' BCB 80.66 -37.36
BENGUET CORP-A BC 80.66 -37.36
CYBER BAY CORP CYBR 13.30 -83.83
EAST ASIA POWER PWR 42.01 -159.00
FIL ESTATE CORP FC 38.38 -13.37
FILSYN CORP A FYN 22.72 -10.89
FILSYN CORP. B FYNB 22.72 -10.89
GOTESCO LAND-A GO 18.68 -10.86
GOTESCO LAND-B GOB 18.68 -10.86
MRC ALLIED INC MRC 13.26 -5.43
PICOP RESOURCES PCP 105.66 -23.33
PRIME ORION PHIL POPI 90.35 -5.12
STENIEL MFG STN 22.11 -13.42
UNIVERSAL RIGHTF UP 45.12 -13.48
UNIWIDE HOLDINGS UW 52.80 -56.18
VICTORIAS MILL VMC 164.26 -18.20
SINGAPORE
ADV SYSTEMS AUTO ASA SP Equit 14.49 -12.12
ADVANCE SCT LTD ASCT SP Equi 16.05 -43.84
HL GLOBAL ENTERP HLGE SP Equi 93.41 -11.84
JURONG TECH IND JTL SP Equit 98.76 -227.28
LINDETEVES-JACOB LJ SP Equity 135.79 -90.16
SUNMOON FOOD COM SMOON SP Equ 14.19 -14.22
TT INTERNATIONAL TTI SP Equit 256.51 -50.62
THAILAND
ABICO HLDGS-F ABICO/F 15.28 -4.40
ABICO HOLDINGS ABICO 15.28 -4.40
ABICO HOLD-NVDR ABICO-R 15.28 -4.40
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
BANGKOK RUBBER BRC 95.77 -72.05
BANGKOK RUBBER-F BRC/F 95.77 -72.05
BANGKOK RUB-NVDR BRC-R 95.77 -72.05
CIRCUIT ELEC PCL CIRKIT 16.79 -96.30
CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30
CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30
DATAMAT PCL DTM 12.69 -6.13
DATAMAT PCL-NVDR DTM-R 12.69 -6.13
DATAMAT PLC-F DTM/F 12.69 -6.13
GRANDE ASSE-NVDR GRAND-R 206.18 -3.80
GRANDE ASSET H-F GRAND/F 206.18 -3.80
GRANDE ASSET HOT GRAND 206.18 -3.80
ITV PCL ITV 34.83 -100.25
ITV PCL-FOREIGN ITV/F 34.83 -100.25
ITV PCL-NVDR ITV-R 34.83 -100.25
K-TECH CONSTRUCT KTECH/F 39.74 -33.07
K-TECH CONSTRUCT KTECH 39.74 -33.07
K-TECH CONTRU-R KTECH-R 39.74 -33.07
KUANG PEI SAN POMPUI 17.70 -12.74
KUANG PEI SAN-F POMPUI/F 17.70 -12.74
KUANG PEI-NVDR POMPUI-R 17.70 -12.74
PATKOL PCL PATKL 52.89 -30.64
PATKOL PCL-FORGN PATKL/F 52.89 -30.64
PATKOL PCL-NVDR PATKL-R 52.89 -30.64
PICNIC CORPORATI PICNI 162.04 -79.86
PICNIC CORPORATI PICNI-R 162.04 -79.86
PICNIC CORPORATI PICNI/F 162.04 -79.86
PONGSAAP PCL PSAAP/F 23.00 -9.14
PONGSAAP PCL PSAAP 23.00 -9.14
PONGSAAP PCL-NVD PSAAP-R 23.00 -9.14
SAHAMITR PRESS-F SMPC/F 21.99 -4.01
SAHAMITR PRESSUR SMPC 21.99 -4.01
SAHAMITR PR-NVDR SMPC-R 21.99 -4.01
SUNWOOD INDS PCL SUN 19.86 -13.03
SUNWOOD INDS-F SUN/F 19.86 -13.03
SUNWOOD INDS-NVD SUN-R 19.86 -13.03
THAI-DENMARK PCL DMARK 15.72 -10.10
THAI-DENMARK-F DMARK/F 15.72 -10.10
THAI-DENMARK-NVD DMARK-R 15.72 -10.10
THAI-GERMAN PR-F TGPRO/F 53.47 -4.49
THAI-GERMAN PRO TGPRO 53.47 -4.49
THAI-GERMAN-NVDR TGPRO-R 53.47 -4.49
TRANG SEAFOOD TRS 13.34 -4.01
TRANG SEAFOOD-F TRS/F 13.34 -4.01
TRANG SFD-NVDR TRS-R 13.34 -4.01
UNIVERSAL S-NVDR USC-R 114.26 -20.53
UNIVERSAL STARCH USC 114.26 -20.53
UNIVERSAL STAR-F USC/F 114.26 -20.53
TAIWAN
CHIEN TAI CEMENT 1107 202.42 -33.40
HELIX TECH-EC 2479T 23.39 -24.12
HELIX TECH-EC IS 2479U 23.39 -24.12
HELIX TECHNOL-EC 2479S 23.39 -24.12
PRODISC TECH 2396 253.76 -36.04
TAIWAN KOL-E CRT 1606U 507.21 -147.14
TAIWAN KOLIN-EN 1606V 507.21 -147.14
TAIWAN KOLIN-ENT 1606W 507.21 -147.14
VERTEX PREC-ENTL 5318T 42.86 -0.71
VERTEX PRECISION 5318 42.86 -0.71
*********
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 ***