/raid1/www/Hosts/bankrupt/TCRAP_Public/101118.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, November 18, 2010, Vol. 13, No. 228
Headlines
A U S T R A L I A
AUSTRALIAN HARDBOARDS: To Close Next Month; Sacks 140 Workers
CENTRO PROPERTIES: Market Process May Result to Change of Control
SMART SERIES: Fitch Assigns Ratings on Various Classes of Notes
C H I N A
CREDIT ONE: Posts US$24,600 Net Loss in Third Quarter
DELONG HOLDINGS: Fitch Assigns 'B' Issuer Default Rating
DELONG HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating
H O N G K O N G
ASIAPAC INTERNATIONAL: Creditors' Proofs of Debt Due December 12
AXIS MULTI-PRINTING: Au Chun Fai Jeffrey Appointed as Liquidator
BEAUTY ARCHITECT: Members' Final Meeting Set for December 13
BHS LIMITED: Leung and Leong Step Down as Liquidators
BUSINESS OBJECTS: Members' Final General Meeting Set for Dec. 17
COSMOPOLITAN COSMETICS: Lam and Boswell Step Down as Liquidators
DREAMS OF HEAVEN: Members' Final General Meeting Set for Dec. 15
DRESDNER KLEINWORT: Members' Final Meeting Set for December 13
EMERALD INNOVATIONS: Members' General Meeting Set for December 17
FOREVER STEP: Members' Final General Meeting Set for December 10
FORTIS INVESTMENT: Members' Final Meeting Set for December 17
FRENCH ASIAN: Ma Ching Nam Steps Down as Liquidator
GLOBAL CONSOLIDATION: Creditors' Proofs of Debt Due December 15
GRAND CHANNEL: Seng and Wong Step Down as Liquidators
HING KWOK: Creditors' Proofs of Debt Due December 3
HK KINDERGARTEN: Creditors' Proofs of Debt Due December 31
HONOR GROWTH: Creditors' Proofs of Debt Due December 3
HUNG CHEUNG: Members' Final Meeting Set for December 23
LEGG MASON: Seng and Lo Step Down as Liquidators
LUEN SHING: Wan and Lin Step Down as Liquidators
I N D I A
BANSAL REALTECH: ICRA Places "LBB" Rating to INR3.5cr Bank Loan
BASSAIYA STEEL: ICRA Assigns 'LBB' Rating to INR5.5cr Bank Debt
BESTECH HOSPITALITIES: ICRA Assigns 'LBB+' Rating to INR125cr Loan
GLOBAL SMELTERS: ICRA Suspends "LBB" Rating Assigned to Term Loans
GUJARAT FLOTEX: ICRA Places 'LBB+' Rating to INR14.4cr Limits
KAITHAL TIMBERS: ICRA Assigns 'LBB' Rating to INR2cr Bank Debt
NATIONAL EXPORT: CRISIL Assigns 'B' Rating to INR1.5MM Term Loan
RAIN CII: Moody's Reviews 'B2' Corporate Family Rating
RAIN CII: S&P Assigns 'B+' Long-Term Corporate Credit Rating
RELIANCE CHEMOTEX: CRISIL Cuts Rating on INR436MM LT Loan to 'BB+'
SHRUTHI MILK: CRISIL Assigns 'BB-' Rating to INR35.5MM LT Loan
SPICEJET LTD: Kalanithi Maran Takes Helm as New Chairman
SRI NARASUS: ICRA Reaffirms 'LBB+' Ratings on Various Bank Loans
TANIA INDUSTRIES: CRISIL Reaffirms 'BB' Rating on INR150MM Debt
I N D O N E S I A
BANK MEGA: Fitch Affirms Individual Rating at 'D'
J A P A N
JLOC 36: S&P Downgrades Ratings on Various Classes of Notes
JLOC 37: S&P Downgrades Ratings on Various Classes of Notes
* Fitch Downgrades Ratings on Various Beneficiary Interests
M A L A Y S I A
KENMARK INDUSTRIAL: Ferrier Hodgson Resigns as Financial Adviser
NAM FATT: Unit Sells Lands With Great Doctrine and Teka Maju
N E W Z E A L A N D
BRIDGECORP LTD: Last-Minute Cash Transfer Blamed for Demise
E-GAS LTD: Gov't. Issues Backstop Regulations to Protect Consumers
SOUTH CANTERBURY: Blogger Files SFO Complain Over $150-Mln Deal
X X X X X X X X
* S&P Puts Ratings on CDO Tranches on CreditWatch Positive
- - - - -
=================
A U S T R A L I A
=================
AUSTRALIAN HARDBOARDS: To Close Next Month; Sacks 140 Workers
-------------------------------------------------------------
ABC News reports that Australian Hardboards Ltd. will close next
month, leaving more than 140 staff out of work. The company has
been operating in Ipswich, west of Brisbane, for more than 50
years.
ABC News relates Australian Hardboards executive chairman Louis
Niederer said several issues have contributed to the company's
demise, including the high Australian dollar and the loss of a
recent contract.
Mr. Niederer, according to ABC News, said the company is working
to help staff find new jobs.
ABC News says Australian Manufacturing Workers Union Queensland
secretary Andrew Dettmer said the business is one of many
companies that have been battered by the high Australian dollar.
"We are very disappointed that the company's going down and the
reality for the workers there is very harsh," ABC quotes Mr.
Dettmer as saying. "But in discussion with the company, the
company has made a commitment that they will be paying out all
their entitlements.
Established in 1958, Australian Hardboards Ltd --
http://www.australianhardboards.com.au/-- manufactures natural
thin hardboards.
CENTRO PROPERTIES: Market Process May Result to Change of Control
-----------------------------------------------------------------
The Sydney Morning Herald reports that Centro Properties Group
said the competitive market process it has initiated to determine
the group's future might result in any of a range of results,
ranging from asset sales to change of control of the group.
According to SMH, Centro Properties chairman Paul Cooper said
during the annual general meeting on Wednesday the competitive
process would help it determine the group's future "in the best
interests of our stakeholders".
"This will not only allow us to assess the merits of the existing
expressions of interest we have received against a competitive
market, but will also very likely trigger discussions on a range
of alternate outcomes including a partial or total
recapitalization of the group, disposal of some assets or pools of
assets to reduce our debt, or possibly a change of control
transaction," SMH quoted Mr. Cooper as saying.
SMH says the competitive process follows a marked improvement in
Centro Properties' position, with net loss in the financial year
ended June 30 of $652.7 million, from a loss of $3.544 billion in
2008-09. But the group still was left in a position in which its
capacity to grow was constrained by its heavy debt.
"Across the entire Centro Group, and all of its funds under
management, there is $18.6 billion of investment properties and
$18.4 billion of debt," Centro chief executive officer Robert
Tsenin told the annual general meeting in Melbourne, according to
SMH.
"Centro is carrying an enormous debt burden and does not have a
sustainable capital structure, with negative $2.1 billion of net
equity as at June 30, 2010," SMH quoted Mr. Tsenin as saying.
"With limited capital available throughout the Group, Centro's
ability to undertake value adding developments or take advantage
of new investment opportunities has been limited.
"This impacts our competitiveness and ultimately will impact the
value of our assets."
The improvement in Centro's position in the prior year was due
largely to significantly lower property devaluations and the
favorable impact of the higher Australian dollar on its net debt.
"In addition, our Australian assets have performed very well with
near full occupancy, favorable lease renewals and costs being
contained," Mr. Tsenin said, according to SMH.
About Centro Properties
Centro Properties Group (ASX:CNP)-- http://www.centro.com.au/--
is a retail investment organization specializing in the ownership,
management and development of retail shopping centres. Centro
manages both listed and unlisted retail property and has an
extensive portfolio of shopping centres across Australia, New
Zealand and the United States. Centro has funds under management
of US$24.9 billion.
* * *
Centro Properties Group owes its creditors as much as AU$6.6
billion and its deadline to repay these debts has been extended
four times since December 2007, when the company's market value
plunged.
The Troubled Company Reporter-Asia Pacific reported on July 30,
2010, CNP secured a one-year extension from December 31, 2010, to
December 31, 2011, for US$2.3 billion of debt within Super LLC (a
joint venture of CNP, Centro Retail Trust and Centro MCS 40). The
extension includes Super LLC's US$1.7 billion bridge term loan
(US$1.2 billion CNP, US$0.5 billion CER) and US$580.0 million of
additional debt.
SMART SERIES: Fitch Assigns Ratings on Various Classes of Notes
---------------------------------------------------------------
Fitch Ratings has assigned final ratings to the SMART Series
2010-2 Trust automotive and equipment lease receivables-backed
securitisation by Macquarie Leasing Pty Limited. Ratings,
Outlooks and Loss Severity Ratings are assigned:
-- AUD80.00m Class A-1 notes: 'F1+sf';
-- AUD360.00m Class A-2b notes: 'AAAsf'; Outlook Stable; Loss
Severity rating at 'LS1';
-- AUD11.25m Class B notes: 'AAsf'; Outlook Stable; Loss
Severity rating at 'LS3';
-- AUD13.75m Class C notes: 'Asf'; Outlook Stable; Loss Severity
rating at 'LS3';
-- AUD12.50m Class D notes: 'BBBsf'; Outlook Stable; Loss
Severity rating at 'LS3'; and
-- AUD12.50m Class E notes: 'BBsf'; Outlook Stable; Loss
Severity rating at 'LS3'.
The notes have been issued by Perpetual Trustee Company Limited as
trustee for SMART Series 2010-2 Trust. SMART Series 2010-2 Trust
is a legally distinct trust established pursuant to a master trust
and security trust deed.
Since the assignment of expected ratings, the transaction has been
upsized from AUD300.00 million to AUD500.00 million. At the cut-
off date, the total collateral pool consisted of 14,608 automotive
and equipment lease receivables totalling approximately AUD495.0m,
with an average size of AUD33,886. The pool is made up of motor
vehicles and equipment lease receivables originated by Macquarie
Leasing to Australian residents across the country. The pool
comprises amortising principal and interest leases with varying
balloon amounts payable at maturity. The weighted average balloon
payment for the portfolio is 29.9%. The majority of leases
consist of novated contracts (60.0%), where the lease is novated
to the employer in salary packaging arrangements. Historical
gross loss rates by quarterly vintage on motor vehicle leases
originated by Macquarie Leasing were found to have ranged between
0.6% and 1.5%, and from 0.5% to 4.0% for equipment.
The final Short-term 'F1+sf' rating assigned to the Class A-1
notes and the final Long-term 'AAAsf' rating with Stable Outlook
assigned to the Class A-2 notes, are based on: the quality of the
collateral; the 12.0% credit enhancement provided by the
subordinate Class B, C, D and E notes and the unrated seller notes
and excess spread; the liquidity reserve account sized at 1.0% of
the aggregate invested amount of the notes at closing; the
interest rate swap arrangements the trustee has entered into with
Macquarie Bank Ltd ('A+'/Outlook Stable/'F1'); and Macquarie
Leasing Pty Ltd's lease underwriting and servicing capabilities.
The final ratings assigned to the other classes of notes are based
on all the strengths supporting the Class A notes, excluding their
credit enhancement levels, but including the credit enhancement
provided by each class of notes' respective subordinate notes.
=========
C H I N A
=========
CREDIT ONE: Posts US$24,600 Net Loss in Third Quarter
-----------------------------------------------------
Credit One Financial, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $24,590 on $219,682 of revenue for
the three months ended September 30, 2010, compared with a net
loss of $40,038 on $1.2 million of revenue for the same period
last year.
The Company also has an accumulated deficit of $822,033 as of
September 30, 2010, and may have to seek loans or sale of its
securities to raise cash to meet its cash needs, the Company said
in the filing.
The Company's balance sheet at September 30, 2010, showed
$5.2 million in total assets, $1.2 million in total liabilities,
and stockholders' equity of $4.0 million.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6eb8
New York City-based Credit One Financial, Inc. is primarily
engaged in the processing and distribution of mineral products,
primarily graphite products, in China. The Company's current
operations began in April 2009.
DELONG HOLDINGS: Fitch Assigns 'B' Issuer Default Rating
--------------------------------------------------------
Fitch Ratings has assigned a 'B' Long-term foreign currency Issuer
Default Rating to Delong Holdings Limited, a steel producer in
China's Hebei province. The Outlook is Stable. At the same time,
the agency has also assigned an expected rating of 'B' and an
expected recovery rating of 'RR4' to the proposed senior unsecured
USD notes to be issued by Delong. The final rating is contingent
upon receipt of final documents conforming to information already
received.
Delong's small scale of operations, with total production capacity
of 2.6 million tonnes per annum, is the main constraining factor
on its rating. This relatively smaller scale does not give it the
scope to have multiple product lines nor distinguish itself in a
field of over 40 other steel companies of similar size in Hebei
province alone. Given the Chinese government's restriction on the
building of any new steel plants, Delong can expand its capacity
only via acquisition. While Delong plans to use a large portion
of the proceeds of the proposed issue to grow via acquisition,
Fitch notes that these plans have not been finalized and have
inherent execution risks. Failure to expand will further
marginalize Delong as the Chinese steel industry consolidates.
Fitch also notes that Delong completed a debt restructuring
exercise in December 2009 which resulted in offshore convertible
bondholders taking an 18% haircut compared to the value they would
have received had they exercised a put option in June 2010. The
exercise was initiated in Q109, when the company was facing
difficult industry and financing conditions.
Delong's ratings are supported by its relatively stable operating
performance and its ability to generate positive free cash flow
(FCF). Delong's metal spread, defined as gross profit per tonne
of steel produced, has remained stable between CNY250 to CNY300
after the 2008 global financial crisis, despite market price
fluctuations of both steel products and raw materials. The agency
expects Delong to continue generating positive FCF as the company
has completed its expansion and plant modernization plan in 2008
and is unable to spend additional expansion capex given the
government restrictions. Delong also has a modest financial
profile, with net debt/operating EBITDAR of 2.2x and operating
EBITDAR/gross interest expenses of 5.3x at the end of 2009. While
short term debt amounted to CNY1,019 million compared to an
unrestricted cash balance of CNY768 million at end September 2010,
Fitch believes that Delong should be able to roll over the short
term facilities given its positive FCF generation and strong asset
cover.
The Stable Outlook reflects Fitch's expectation that the Chinese
steel price may be supported by the government's drive in
restructuring the industry. In August 2010, the Ministry of
Industry and Information Technology announced the shuttering of
plants with total capacity of 35mpta. Furthermore, the ongoing
restriction on steel capacity expansion should eventually improve
the supply demand balance. The expected increase in global supply
of iron ore beginning 2013 may also support the improvement in
industry profitability as raw material cost pressure eases.
Factors that may cause a negative rating action include Delong's
onshore debts to total assets rising above 20%, and/or its annual
metal spread falling below CNY200, and/or a deterioration of its
net debt/EBITDAR to above 3.0x for two consecutive years, and/or
Operating EBITDAR/Gross interest expenses falling below 2.5x,
and/or FCF becomes negative over two consecutive years. Also, any
material adverse changes in the terms of the proposed senior
unsecured notes, its funding or investment plans may also result
in a negative rating action.
Positive rating triggers include the company's ability to increase
its scale beyond 5mtpa crude steel capacity, while maintaining its
net debt/EBITDAR below 2.0x and remaining FCF positive for at
least two consecutive years. Any of these factors alone would be
insufficient in supporting an upward rating action.
DELONG HOLDINGS: Moody's Assigns 'B2' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has assigned a first-time provisional
(P)B2 corporate family rating to Delong Holdings Ltd.
At the same time, Moody's has assigned a provisional (P)B3 senior
unsecured rating to its proposed US dollar senior unsecured bond
issues.
The outlook for all ratings is stable.
The proceeds from the proposed bonds issuance will be used to
repay debt, general corporate purposes and fund future
acquisitions.
Moody's expects to remove the provisional status of the ratings
when the bond transaction is completed and its terms and
conditions are satisfactory. If the issuance fails to go ahead,
Moody's will re-assess Delong's rating in view of the company's
need for capital to fund its expansion under its business strategy
to stay competitive.
Ratings Rationale
"Delong's efficient production line and waste management
initiatives save overall production costs. This partially
mitigates margin pressure in the volatile steel manufacturing
industry," says Ken Chan, a Moody's Vice President.
"Near-term demand for Delong's HRC products is support by real
estate-related construction activities in China, given strong
recent property development activities. Over the medium term,
Moody's expect favorable demand for property and private
consumption supports Delong's business growth, while some
infrastructure construction projects could slow on the back of
retreating government stimulus measures," said Chan.
"Projected credit metrics -- with Debt/EBITDA of 4x and
Debt/Capitalization of 55-60% -- are consistent with a high
single-B rating. However, the rating is constrained at B2, given
the government regulatory measures that pressure Delong's small
operating scale," said Chan, adding "Its steel production capacity
of 2.6 million metric tons per annum means it is exposed to higher
acquisition and integration risks in China's steel industry, which
is undergoing rationalization and massive consolidation."
Delong's steel production capacity declined from 3.0 million mtpa
in 2009 due to the forced shutdown of its small furnaces as part
of the Chinese government's initiatives to eliminate obsolete
capacity in the industry.
Moreover, the rating reflects its debt restructuring in 2009.
The company's bond rating is notched down to B3, reflecting the
risk of structural subordination. Delong's ratio of subsidiary
debt to total assets is estimated at 15-20% over the next 3 years.
The outlook of the ratings is stable, reflecting Moody's
expectation that the company could secure adequate funding to
support its business plan and to stay competitive under the
challenge of consolidation in the industry.
The ratings are unlikely to be upgraded in the near-term.
However, upward pressure could occur over time if the company (1)
successfully executes its acquisition and integration plans to
grow its capacity, while maintaining financial discipline; (2)
maintains its competitive cost structure to mitigate margin
pressures; (3) shows a track record of improvement in liquidity
and debt management; and (4) improves its credit metrics, such
that Debt/EBITDA is below 3.0-3.5x and EBITDA/Interest over 4.5-
5.0x on a consistent basis.
On the other hand, the ratings could experience downward pressure
if the company's financial position weakens -- weakening liquidity
position; declining profit margin; or reducing output or capacity.
Such deteriorations reflect in weakened credit metrics - Total
Debt/EBITDA increases above 5.0-6.0x and EBITDA/interest stays
below 2.5-3.0x over the cycle.
This outcome could be a result of (a) further regulatory measures
that impair the company's operations; (b)a higher-than-expected
increase in raw material prices, such as for iron ore and coke,
without a corresponding climb in product prices;(c) an inability
to execute its acquisition strategy as planned; and/or (d) an
inability to ramp up planned production capacity, or steel demand
in China is weaker-than-expected. Moreover, an aggressive
dividend policy, which drains capital reserves and weakens balance
sheet liquidity, will also be negative for the ratings.
Delong Holdings Limited is a manufacturer of hot-rolled steel
coils in Hebei Province, China. The company listed on the
Singapore Stock Exchange via a backdoor listing in 2005. It
focuses on mid-width flat products ranging from 350-1,150 mm in
width and 1.4-24.5 mm in thickness. These products are mainly
used in the infrastructure, pipe-making and machinery industries.
The company is 59% controlled by the founder, Mr Ding Liguo, via
his wholly owned holding company, Best Decade Holdings Limited.
================
H O N G K O N G
================
ASIAPAC INTERNATIONAL: Creditors' Proofs of Debt Due December 12
----------------------------------------------------------------
Creditors of Asiapac International Enterprises Limited, which is
in members' voluntary liquidation, are required to file their
proofs of debt by December 12, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on November 3, 2010.
The company's liquidator is:
Yip Ka Yui
6/F., Greenwich Centre
260 King's Road
North Point, Hong Kong
AXIS MULTI-PRINTING: Au Chun Fai Jeffrey Appointed as Liquidator
----------------------------------------------------------------
Au Chun Fai Jeffrey on October 24, 2010, was appointed as
liquidator of Axis Multi-Printing Company Limited.
BEAUTY ARCHITECT: Members' Final Meeting Set for December 13
------------------------------------------------------------
Members of Beauty Architect Prestige Club Limited will hold their
final general meeting on December 13, 2010, at 10:00 a.m., at Room
3, 8/F., Yue Xiu Building, 160 Lockhart Road, Wan Chai, in
Hong Kong.
At the meeting, Leung Chi Wing, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
BHS LIMITED: Leung and Leong Step Down as Liquidators
-----------------------------------------------------
Leung Hok Lim and Leong Ting Kwok stepped down as liquidators of
BHS Limited on November 5, 2010.
BUSINESS OBJECTS: Members' Final General Meeting Set for Dec. 17
----------------------------------------------------------------
Members of Business Objects Greater China Limited will hold their
final general meeting on December 17, 2010, at 3:45 p.m., at Level
28, Three Pacific Place, 1 Queen's Road East, in Hong Kong.
At the meeting, Natalia K M Seng, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
COSMOPOLITAN COSMETICS: Lam and Boswell Step Down as Liquidators
----------------------------------------------------------------
Mr. Rainier Hok Chung Lam and Mr. Anthony David Kenneth Boswell
stepped down as liquidators of Cosmopolitan Cosmetics China
Limited on November 1, 2010.
DREAMS OF HEAVEN: Members' Final General Meeting Set for Dec. 15
----------------------------------------------------------------
Members of Dreams of Heaven Limited will hold their final general
meeting on December 15, 2010, at 12:30 p.m., at 2/F., No. 16B,
Shek Kwu Lung Village, Tai Po, New Territories.
At the meeting, Ng Sau Wa Sylvia, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
DRESDNER KLEINWORT: Members' Final Meeting Set for December 13
-------------------------------------------------------------
Members of Dresdner Kleinwort Securities (Asia) Limited will hold
their final general meeting on December 13, 2010, at 10:00 a.m.,
at Level 28 Three Pacific Place, 1 Queen's Road East, in
Hong Kong.
At the meeting, Ying Hing Chiu and Chan Mi Har, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
EMERALD INNOVATIONS: Members' General Meeting Set for December 17
-----------------------------------------------------------------
Members of Emerald Innovations Limited will hold their final
general meeting on December 17, 2010, at 11:30 a.m., at Level 28,
Three Pacific Place, 1 Queen's Road East, in Hong Kong.
At the meeting, Susan Y H Lo, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
FOREVER STEP: Members' Final General Meeting Set for December 10
----------------------------------------------------------------
Members of Forever Step Limited will hold their final general
meeting on December 10, 2010, at 10:00 a.m., at Unit 901, 9th
Floor, Omega Plaza, 32 Dundas Street, Kowloon, in Hong Kong.
At the meeting, Lau Chung Sun, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
FORTIS INVESTMENT: Members' Final Meeting Set for December 17
-------------------------------------------------------------
Members of Fortis Investment Management Hong Kong Limited will
hold their final meeting on December 17, 2010, at 10:00 a.m., at
31/F., The Center, 99 Queen's Road Central, in Hong Kong.
At the meeting, Ng Kit Ying Zelinda, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
FRENCH ASIAN: Ma Ching Nam Steps Down as Liquidator
---------------------------------------------------
Ma Ching Nam stepped down as liquidator of The French Asian Art
Society Limited on October 30, 2010.
GLOBAL CONSOLIDATION: Creditors' Proofs of Debt Due December 15
---------------------------------------------------------------
Creditors of Global Consolidation Sevices (Holdings) 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 4, 2010.
The company's liquidators are:
James T. Fulton
Cordelia Tang
905 Silvercord, Tower 2
30 Canton Road
Tsimshatsui, Kowloon
Hong Kong
GRAND CHANNEL: Seng and Wong Step Down as Liquidators
-----------------------------------------------------
Natalia Seng Sze Ka Mee and Cynthia Wong Tak Yee stepped down as
liquidators of Grand Channel International Limited on November 5,
2010.
HING KWOK: Creditors' Proofs of Debt Due December 3
---------------------------------------------------
Creditors of Hing Kwok Industrial Company Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by December 3, 2010, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on November 4, 2010.
The company's liquidators are:
Ying Hing Chiu
Chan Mi Har
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
HK KINDERGARTEN: Creditors' Proofs of Debt Due December 31
----------------------------------------------------------
Creditors of Hong Kong Kindergarten Education Association Limited,
which is in members' voluntary liquidation, are required to file
their proofs of debt by December 31, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on November 1, 2010.
The company's liquidator is:
Mak Kay Lung Dantes
Rooms 2101-3 China Insurance Group Building
141 Des Voeux Road
Central, Hong Kong
HONOR GROWTH: Creditors' Proofs of Debt Due December 3
------------------------------------------------------
Creditors of Honor Growth Company Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by December 3, 2010, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on November 4, 2010.
The company's liquidators are:
Ying Hing Chiu
Chan Mi Har
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
HUNG CHEUNG: Members' Final Meeting Set for December 23
-------------------------------------------------------
Members of Hung Cheung Investment Company Limited will hold their
final meeting on December 23, 2010, at 10/F, Dawning House, Nos.
145-6, Connaught Road Central, in Hong Kong.
At the meeting, Yip Kai Wah, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
LEGG MASON: Seng and Lo Step Down as Liquidators
------------------------------------------------
Natalia S M Seng and Susan Y H Lo stepped down as liquidators of
Legg Mason Management Services (Hong Kong) Limited on October 29,
2010.
LUEN SHING: Wan and Lin Step Down as Liquidators
------------------------------------------------
Wan Yiu Chung Paul and Lin Lai Har Wendy stepped down as
liquidators of Luen Shing Catering Development Limited on
November 1, 2010.
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I N D I A
=========
BANSAL REALTECH: ICRA Places "LBB" Rating to INR3.5cr Bank Loan
---------------------------------------------------------------
ICRA has assigned an "LBB" rating to the INR3.5 crores fund based
limits of Bansal Realtech Limited. The outlook on the rating is
stable. ICRA has also assigned an A4 rating to INR18 Crores non-
fund based limits of BRL.
The ratings take into account the highly competitive nature of the
industry characterized by the presence numerous players which have
resulted in modest profitability of the company in the past.
Moreover, the margins remains exposed to exposure to any variation
in the timber prices. The ratings however derive comfort from the
long experience of the promoters in the timber trading business
and healthy demand outlook for timber in the country. Going
forward, ICRA expects high competition and commoditized nature of
BRL's products due to limited value addition keep the debt
protection metrics at a moderate level in the future.
Bansal Realtech Limited, established in 2009, is engaged in the
business of trading of timber (Hardwood) logs. The company
operates from its offices located in Delhi, Gandhidham (Gujarat)
and Karnal (Haryana) and essentially caters to the timber demand
of Northern India. The company's Gandhidham office is located in
close proximity to Kandla port, the gateway of imported timber in
India. The company is promoted by Bansal family which has been
engaged in timber trading business since 1970's in the
proprietorship firm- Bansal Enterprises. In 2009, BRL was
incorporated and the business of Bansal Enterprises was
transferred in BRL.
BASSAIYA STEEL: ICRA Assigns 'LBB' Rating to INR5.5cr Bank Debt
---------------------------------------------------------------
ICRA has assigned the long-term rating of "LBB" to the INR5.50
crore fund- based facilities of Bassaiya Steel Corporation. ICRA
has also assigned the short-term rating of A4 to the INR3.5 crore
non-fund based facilities of BSC. The long term rating carries a
stable outlook.
The ratings take into consideration the intensely competitive
nature of the business, BSC's modest scale of operations, its low
profitability, its high gearing and its negative cash flows from
operations. The ratings however derive comfort form BSC's
experienced management, steady growth in its revenues over the
last few years and its established relations with key customers
which has enabled it to secure repeat orders from them in the
past.
Bassaiya Steel Corporation was incorporated in 1997 and is engaged
in the business of trading in iron & steel products and ferro
alloys. BSC, a sole proprietorship, was set up by Mrs. Sunita
Gupta and is managed by her husband Mr. Pradeep Gupta who has more
than ten years of experience in the industry. The firm's Head
office and warehousing facility is located in Jaipur
Recent Results
In FY 2010 (provisional), BSC reported a profit before tax (PBT)
of INR0.48 crore on an operating income of INR52.09 crore
resulting in a profit margin (before tax) of 0.93%.
BESTECH HOSPITALITIES: ICRA Assigns 'LBB+' Rating to INR125cr Loan
------------------------------------------------------------------
ICRA has assigned "LBB+" rating to INR125 crore fund based
facilities of Bestech Hospitalities Private Limited. The outlook
on the rating is Stable.
The rating factors in BHPL's association with 'Radisson Hotels
International Inc. for its completed and upcoming hotel properties
which besides brand recognition, provides it access to RHI's
global reservation systems. The rating also positively factors in
the satisfactory performance of the company's operational property
-- Radisson Suites, Gurgaon, the recent commencement of BHPL's
Indore hotel property and advance stage of construction for its
hotel property at Nagpur. The rating is however constrained by
market risks on account of entry of BHPL into new markets like
Indore and Nagpur, relatively high gearing of the company and the
anticipated mismatches in cash flows on account of delays in
completion of hotel properties (at Indore and Nagpur) and
commencement of debt repayments. As the recently commenced/under
construction hotel properties are expected to stabilize over the
coming months, the debt servicing will have to be met largely
through promoter funding. Nevertheless, with stabilization of the
hotel properties and increase in occupancy levels, the cash
flows of the company are expected to improve going forward.
Bestech Hospitalites Private Limited is part of the Bestech Group
which was founded by Mr. Dharmendra Bhandari and Mr. Sunil Satija
in early 90s. The group started as a construction contractor and
has been in the construction business for over two decades. It has
constructed over 14 million sq. ft of space for various real
estate projects including several residential and commercial
projects in the NCR for developers like Unitech, MGF etc. In
2001, the group diversified into real estate business and
incorporated Besetch India Private Limited. Over the years, the
Bestech Group has developed residential and commercial projects in
Gurgaon which include -- Bestech Chambers, Bestech Central Square,
Park View City - I & II. In 2002, the Bestech Group diversified
into hospitality sector and incorporated BHPL.
BHPL has completed two hotel properties -- Park Plaza Gurgaon
(4 star property) which was sold in 2008 and Radisson Suites
Gurgaon which became operational in April 2009. The company has
recently commenced operations of its Radisson hotel at Indore and
is in the process of developing a five star hotel property at
Nagpur which is expected to be completed by December 2010. For FY
2010, BHPL reported a turnover of INR14.78 crore and Profit after
tax of INR3.44 crore.
GLOBAL SMELTERS: ICRA Suspends "LBB" Rating Assigned to Term Loans
------------------------------------------------------------------
ICRA has suspended "LBB" rating assigned to the INR158 crore term
loans and INR40 crore cash credit limits of Global Smelters
Limited1. The suspension follows ICRA's inability to carry out a
rating surveillance in the absence of the requisite information
from the company.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise. ICRA will
withdraw the rating in case it remains under suspension for a
period of three years.
GUJARAT FLOTEX: ICRA Places 'LBB+' Rating to INR14.4cr Limits
-------------------------------------------------------------
ICRA has assigned an "LBB+" rating to the INR14.40 crores fund
based limits of Gujarat Flotex Limited. The outlook on the rating
is stable. ICRA has also assigned an A4+ rating to INR1.6 Crores
non-fund based limits of GFL.
The ratings reflect the high competitive threats from local
players and imports, limited bargaining power because of the size
of GFL's operations and a leveraged capital structure given debt
funded capital expenditure incurred in FY2010. Moreover, the
company's margins remain exposed to price and exchange rate
fluctuations risk while importing raw material. The rating however
draws comfort from the promoters' experience in the flocking
business; company's diversified geographical presence and wide
customer base. Moreover, ICRA also notes robust growth in GFL's
operating income in the last few years while assigning the
ratings.
Gujarat Flotex Pvt. Limited, incorporated in 2000, is engaged in
the business of manufacturing flocked fabrics primarily for the
domestic market. The product (flocked fabric) is essentially the
nylon coated fabric which finds applications in the upholstery/
home furnishing industry (sofa covers, chair covers, etc.),
automotive industry (essentially car seat covers), packaging
industry (jewellery pouches etc.) and other miscellaneous
applications (bindi, jackets etc.). The company is a family
driven business and is promoted by the Tosniwal family which has
been engaged in the flocking industry since 1976.
Recent Results
For Q1 of FY 2011, JKPL reported Gross Sales of INR338.13 crore,
witnessing a growth of 10.16% over Q1 of FY 2010. The Net profit
reported by the company also increased to INR29.11 crore in Q1 of
FY 2011 from INR20.16 crore in Q1 of FY 2010.
KAITHAL TIMBERS: ICRA Assigns 'LBB' Rating to INR2cr Bank Debt
--------------------------------------------------------------
ICRA has assigned an "LBB" rating to the INR2 crores fund based
limits of Kaithal Timbers Pvt. Limited. The outlook on the rating
is stable. ICRA has also assigned an A4 rating to INR10 Crores
non-fund based limits of KTPL.
The non-investment grade ratings factor in KTPL's relatively
modest size of operations which coupled with the highly
competitive and the commoditized nature of KTPL's products due to
limited value addition, which has resulted in low profitability
for the company in the past and ICRA expects this situation to
remain unchanged in the medium term. The profitability will also
remain exposed to variation in timber prices. The rating action,
however, favorably factors in long experience of the promoters in
the timber trading business, established relationship with timber
suppliers, well diversified client base, moderate working capital
intensity and healthy demand outlook for hardwood in the country.
Kaithal Timbers Pvt. Limited, established in 2006, is engaged in
the business of trading of timber (Hardwood) logs. The company
operates from its offices located in Delhi, Gandhidham (Gujarat)
and Karnal (Haryana) and essentially caters to the timber demand
of Northern India. The company's Gandhidham office is located in
close proximity to Kandla port, the gateway of imported timber in
India. The company is promoted by Bansal family which was
carrying out the timber trading business since 1970's in the
proprietorship firm- Kaithal Timber Stores. In 2006, KTPL was
incorporated and the business of Kaithal Timber Stores was
transferred in KTPL.
NATIONAL EXPORT: CRISIL Assigns 'B' Rating to INR1.5MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of National Export Industries.
Facilities Ratings
---------- -------
INR120.0 Million Cash Credit Facility B/Stable (Assigned)
INR1.5 Million Term Loan B/Stable (Assigned)
INR12.0 Million Proposed LT Bank Loan B/Stable (Assigned)
Facility
INR0.1 Million Bank Guarantee P4 (Assigned)
The ratings reflect NEI's weak financial risk profile, marked by a
high gearing and weak debt protection measures, and exposure to
risks related to intense competition in the edible oil industry.
These rating weaknesses are partially offset by the benefits that
NEI derives from its promoters' extensive experience in the edible
oil industry.
Outlook: Stable
CRISIL expects National Export Industries (NEI) to maintain its
business risk profile backed by established customer base. The
financial risk profile is expected to remain constrained due to
high gearing and weak debt protection measures. The outlook may
be revised to 'Positive' in case of improvement in profitability
while increasing the scale of operations and infusion of equity
leading to improvement in capital structure. Conversely, outlook
may be revised to 'Negative' in case of deterioration in the
margins leading to deterioration of financial risk profile.
About National Export
Set up in 1988, NEI, a partnership firm, manufactures and trades
in edible oils and de-oiled cake. NEI was acquired by its current
partners in 1994. Sales from trading are estimated to be around
40% and the rest are contributed by manufacturing activities. NEI
currently derives 80% of its revenues from groundnut oil and its
by-products, and the remainder from refined cottonseed oil. The
firm's presence is largely restricted to Gujarat. NEI has crushing
capacity of 80 tonnes per day (tpd), DOC manufacturing capacity of
125 tpd and oil refining capacity of 50 tpd.
NEI reported book profit of INR0.5 million on net sales of
INR609.5 million for 2009-10 (refers to financial year, April 1 to
March 31), against a book loss of INR14.4 million on net sales of
INR698.3 million for 2008-09.
RAIN CII: Moody's Reviews 'B2' Corporate Family Rating
------------------------------------------------------
Moody's Investors Service has placed the B2 corporate family and
B1 senior secured bank credit facility ratings of Rain CII Carbon
(India) Limited on review for possible downgrade.
The rating review follows the proposed issuance of US$400 million
senior secured notes by Rain CII Carbon LLC, a majority owned
subsidiary of RCCIL. At the same time, Rain CII LLC has been
released from its earlier guarantee for RCCIL's obligations under
the senior secured facility and the Rain CII group has announced a
corporate restructuring exercise.
"Moody's will review RCCIL's credit ratings in light of its
relatively small size and operations in India and also reassess
support available from the larger CPC operations in the US," says
Alan Greene, a Moody's VP/Senior Credit Officer and lead analyst
for the company.
Moody's review will address 1) changes in the business and
financial profile of RCCIL, as a result of the corporate
restructuring 2) changes in the security and guarantee structure
supporting RCCIL's secured senior bank credit facility, and 3)
restrictions on payments, if any, from the US operating company to
India.
Moody's last press release with regard to RCCIL was published on
October 19, 2007, when Moody's assigned a first time corporate
family rating of B2, and senior secured bank credit facility
rating of B1 to RCCIL.
Rain CII Carbon (India) Ltd, together with its majority-owned
subsidiary Rain CII Carbon LLC (corporate family rating of B1), is
the largest producer of calcined coke in the world. The combined
group is referred to as Rain CII, with RCC contributing about two-
thirds of group revenue.
Rain CII sells CPC mainly for the production of primary aluminum
and, to a lesser extent, for the production of titanium dioxide.
CPC is a critical raw material in the production of carbon anodes
used in aluminum smelting. In 2009, about 90% of global CPC was
used in aluminum smelting.
RAIN CII: S&P Assigns 'B+' Long-Term Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to U.S.-based calciner Rain CII Carbon
(India) Ltd. The outlook is positive. At the same time, S&P
assigned its issue rating of 'BB-' and recovery rating of '2' on
the proposed US$400 million senior secured notes to be issued by
RCCL, indicating that lenders can expect substantial recovery
(70%-90%) in the event of a payment default. The rating on the
proposed notes is subject to S&P's review of the final issuance
documentation.
At the same time, Standard & Poor's assigned its 'B+' long-term
corporate credit rating on India-based RCCVL. The outlook is
stable. S&P also assigned its 'B+' issue rating on the company's
senior secured bank loan.
All ratings are based on S&P's expectation that the proposed
reorganization at RCCIL (B/Positive/--) will be completed.
RCCIL's existing corporate and capital structure was largely
formed as part of it's acquisition of RCCL in 2007. The latter is
currently wholly owned by the former, which is now embarking on a
corporate reorganization that will place the India and the U.S.
calcined petroleum coke assets and liabilities under RCCVL and
RCCL, respectively. A new holding company CPC Holdings USA LLC in
the U.S. will own RCCVL as well as RCCL. The cross guarantees
that currently exist between RCCIL and RCCL will be removed.
CPCUSA, however, will guarantee the senior secured bank loan at
RCCVL. India-based Rain Commodities Ltd. (43% promoter holding
and a 57% public holding; not rated) will own CPCUSA through
intermediate holding companies. One of the drivers of the
corporate reorganization is to provide CPCUSA with better access
to capital markets in the U.S.
"The ratings on RCCL reflect the company's aggressive financial
risk profile, cyclical end markets, supplier and customer
concentration, and limited green petroleum coke sources," said
Standard & Poor's credit analyst Mehul Sukkawala. "The company's
strong market position in the CPC industry, established and long-
term customer and supplier relationships, and stable operating
performance temper these weaknesses, to an extent."
The rating on RCCVL reflects the company's single location in
India, supplier and customer concentration risks, exposure to
cyclical end markets, and limited GPC sources. RCCVL's
established relationships with customers and the growing demand
for CPC, along with the revenue stability and diversity provided
by the company's electricity co-generation operations temper some
of these weaknesses. S&P believes that on a stand-alone basis
RCCVL's credit profile is weaker than RCCL's. Nonetheless, S&P
believes that there are strong operating linkages between the two
companies, including the sharing of managerial and technical
resources, securing GPC from common suppliers, and CPCUSA's
guarantee on the senior secured debt at RCCVL. Hence, the rating
on RCCVL benefits from the better credit profile of RCCL.
At present, RCCIL has two rated debt instruments: (1) senior
secured notes (BB-) that are held partly at RCCL and partly at
RCCIL; and (2) senior subordinated notes (B-) that are held at
RCCL.
RCCL will use the proceeds from the proposed notes to refinance
its portion of existing senior secured debt and senior
subordinated notes. S&P's analysis results in a recovery rating
of '2' on the proposed notes, indicating the expectation of a
substantial (70%-90%) recovery for the proposed senior secured
notes in a payment default. Standard & Poor's expects that, upon
default, lenders would achieve the greatest recovery value through
reorganization rather than liquidation.
RCCIL's portion of senior secured debt will be transferred to
RCCVL. The rating on this debt is equal to the corporate credit
rating on RCCVL. This equalization reflects the absence of a
legal review by Standard & Poor's in India that would allow it to
form an opinion on the ability to differentiate between secured
and unsecured debt in issue ratings.
The completion of the proposed reorganization is subject to
approval from various stakeholders such as existing lenders,
noteholders, regulators, and the judiciary, but management has
indicated to Standard & Poor's that this will occur in the current
calendar year. Once reorganization is completed, the existing
issuer and issue ratings on RCCIL will be withdrawn.
RELIANCE CHEMOTEX: CRISIL Cuts Rating on INR436MM LT Loan to 'BB+'
------------------------------------------------------------------
CRISIL has downgraded its ratings on Reliance Chemotex Industries
Ltd' bank facilities to 'BB+/Stable/P4+' from 'BBB-/Stable/P3'.
Facilities Ratings
---------- -------
INR160.0 Million Cash Credit BB+/Stable (Downgraded
from 'BBB-/Stable)
INR436.0 Million Long-Term Loan BB+/Stable (Downgraded
from 'BBB-/Stable)
INR76.3 Million Proposed LT Bank BB+/Stable (Downgraded
Loan Facilities from 'BBB-/Stable)
INR170.0 Million Letter of Credit P4+ (Downgraded from
'P3')
INR20.0 Million Bank Guarantee P4+ (Downgraded from
'P3')
INR20.0 Million Line of Credit P4+ (Downgraded from
'P3')
INR5.7 Million Proposed ST Bank P4+ (Downgraded from
Loan Facilities 'P3')
The downward revision in ratings reflect CRISIL's concerns arising
from Reliance Chemotex' highly geared capital structure and modest
debt protection metrics. The initial rating had assumed a
significant equity component in the funding pattern for the
company's expansion program which did not materialize and the
company's significant dependence on debt funding for these
programs led to a weakening of the gearing and debt protection
metrics, thereby triggering a downgrade.
The rating reflects the concerns emanating from the company's
average financial risk profile which are offset by the benefits
which the company derives from its established presence in
synthetic yarn industry and the promoter's long experience and
established relationships with customers and suppliers.
Outlook: Stable
The 'stable' outlook reflects CRISIL's belief that Reliance
Chemotex will be able to maintain its market position on the back
of established relations with existing customers and healthy
demand prospects for the synthetic yarns. The outlook may be
revised to 'Positive' if the company generates better than
expected growth in cash accruals leading to significant
improvement in its debt protection indicators and overall
financial risk profile. However, the outlook may be revised to
'Negative' if the company undertakes larger than expected debt
funded capex resulting in further deterioration of its financial
risk profile.
About Reliance Chemotex
Incorporated in 1977, Reliance Chemotex Industries Limited
(Reliance Chemotex) is engaged in the manufacture and exports of
spun-dyed synthetic and blended yarn (100% viscose yarn, 100%
polyester yarn, and blended polyester-viscose yarn). The company,
listed on Bombay Stock Exchange since 1979, has been promoted by
Shri Shanker Lal Shroff, together with his brother in law, Shri
S. K. Kejriwal. The company is headquartered at Mumbai & its
plant is located near Udaipur in Rajasthan. Reliance Chemotex has
an installed capacity of around 38,000 spindles at present.
Reliance Chemotex reported a provisional profit after tax (PAT) of
INR18.20 million on net sales of INR1529.36 million for 2009-10
against a net profit of INR17.44 million on net sales of
INR1219.40 million for 2008-09.
SHRUTHI MILK: CRISIL Assigns 'BB-' Rating to INR35.5MM LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable' rating to the bank facilities
of Shruthi Milk Products Pvt Ltd.
Facilities Ratings
---------- -------
INR35.50 Million Long-Term Loan BB-/Stable (Assigned)
INR25.00 Million Cash Credit BB-/Stable (Assigned)
The rating reflects SMPPL's limited geographical and product
diversity coupled with exposure to intense competition in the
dairy market in South India and its below-average financial risk
profile, marked by low net worth. These weaknesses are partially
offset by the experience of SMPPL's promoters in the dairy
business.
Outlook: Stable
CRISIL believes that SMPPL will benefit over the medium term from
the experience of its promoter in the dairy business. The outlook
may be revised to 'Positive', if the company improves its
operating margin and its financial risk profile, on back of
increased contribution from value added products. Conversely, the
outlook may be revised to 'Negative' if the company faces time or
cost overruns in the implementation of its proposed capex plans,
resulting in deterioration of the financial risk profile.
About Shruthi Milk
Incorporated in 2009, SMPPL is in the business of manufacturing
milk and milk-based products. The business was earlier run under
the aegis of the proprietorship firm Balamurugan Dairy Products
and was converted into a private limited company in 2009. The
company has a processing facility of capacity 90,000 litres per
day (lpd) at Chitoor (Andhra Pradesh), and three chilling centres
of 30,000 lpd each. The company currently caters to the Chennai,
rural Tamil Nadu (mainly Kanchipuram and Tiruvannamalai) and
Bengaluru markets. The day-to-day operations of the company are
managed by the promoter, Mr. Kannaiah Reddy.
SMPPL reported a profit after tax (PAT) of INR6.8 million on net
sales of INR668.8 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR5.7 million on net sales
of INR590.9 million for 2008-09.
SPICEJET LTD: Kalanithi Maran Takes Helm as New Chairman
--------------------------------------------------------
The Economic Times reports that SpiceJet Ltd. reconstituted its
board on Monday after the company's takeover by media baron
Kalanithi Maran, who has acquired 38.66% stake in the airline.
According to the report, Mr. Maran has been appointed as the
company's chairman. The airline also appointed S Natrajhen as the
chief operating officer of the company.
A number of new directors including Kavery Kalanithi Maran, a
member of the Maran family, was inducted as a non-independent
director. Four independent directors -- Sridaran, J Ravindran,
Nicholas Martin Paul and MK Harinarayan -- also joined the board.
At the November 15 meeting, the Economic Times says, directors
Bhupendra Kansagra, Kishore Gupta, Mukkaram Jaan and Vijay Kumar
stepped down from the board.
The Economic Times, citing sources within the low-cost airline,
reports that Mr. Maran have reassured employees that the company's
headquarters will remain in Delhi while the registered office will
shift to Chennai.
"I have acquired the airline because you people have been doing
well and the credit goes to you. We are going great guns and we
are bound to grow from here," Mr. Maran reportedly told SpiceJet
employees, the report relates.
About Spicejet Ltd
SpiceJet Limited -- http://www.spicejet.com/-- is an India-based
airline company. The Company operates 113 flights daily to 18
destinations, offering connectivity between metros and non-metros.
During fiscal year ended March 31, 2008 (fiscal 2008), the Company
inducted eight new aircrafts to its fleet taking the total fleet
strength to 19 aircrafts. Out of the eight new aircraft inducted,
two were Boeing 737-900.
* * *
Walker, Chandiok & Co Chartered Accountants, raised doubt about
Spicejet Ltd's ability to continue as a going concern. The
auditors said the Company's accumulated losses, as of March 31,
2010, amounted to INR8,223.75 million, as against the Company's
share capital and reserves of INR4,801.98 million.
SRI NARASUS: ICRA Reaffirms 'LBB+' Ratings on Various Bank Loans
----------------------------------------------------------------
ICRA has re-affirmed the rating assigned to the INR2.8 Crore term
loans and the INR46.0 Crore, fund-based limits of Sri Narasus
Coffee Company Limited at "LBB+". The outlook on the rating is
stable. ICRA has also re-affirmed the rating assigned to the
INR27.0 crore fund-based limits of NCCL at A4+.
ICRA also withdraws the "LBB+" rating outstanding on the
INR0.2 crore term loans of NCCL as the same has been fully repaid
by the company.
The re-affirmation of ratings reflects the sustained leadership
position of NCCL in the R&G segment of Tamil Nadu market, steady
growth witnessed across product categories, growing geographical
diversification in both the R&G and instant coffee segments,
widening product portfolio with entry into cured coffee and high
entry barriers existent in the branded coffee business owing to
regional preferences for flavor/aroma. However the ratings
continue to remain constrained by the stretched financial profile
of the company, characterized by leveraged capital structure; high
working capital intensity and moderate coverage indicators.
Capital structure is stretched by considerable profit withdrawal
made by the promoters till 2008-09, leading to low networth
base for the company. Over the last two seasons, owing to the
continuous increase in raw coffee prices, profit margins of the
company have also been on a decline. The high coffee prices have
stifled domestic demand which coupled with the demand slowdown in
the export markets had limited the pricing flexibility of the
company. Further in the current fiscal, the export volumes of NCCL
are expected to suffer as supplies to its largest customer has
been lost out to its competitor. To mitigate the demand risk, the
company plans to enter new markets both on the domestic and export
fronts, widening its product portfolio through entry into cured
coffee segment and launch of instant coffee in the domestic
market. However the above would require higher marketing costs and
consequently impact the margins of the company. The ratings also
take into consideration the NCCL's geographical sales
concentration in a single state (Tamil Nadu) and high competition
faced by NCCL -- from unorganized players in the R&G coffee
segment and from organized majors like Tata Coffee and CCL
products (continental) in the instant coffee segment. The ability
of the company to improve its margins and translate its
geographical expansion into higher volumes and better earnings
would be key rating sensitivities.
Sri Narasus Coffee Company Limited, managed by Mr. Sivanantham and
his family, has been in the coffee business for the past 80 years.
It was incorporated as a limited company on April 1, 2009 before
which it was a partnership concern. NCCL markets both the Roasted
& Ground (R&G) coffee and instant coffee with revenues of
INR173 crore in 2009-10. It is the market leader in the R&G
segment in Tamil Nadu with a market share of about 50% and exports
instant coffee to several Asian and European countries.
TANIA INDUSTRIES: CRISIL Reaffirms 'BB' Rating on INR150MM Debt
---------------------------------------------------------------
CRISIL's ratings on Tania Industries Pvt Ltd continue to reflect
the risks related to its limited pricing flexibility due to
intense market competition in the trading of solvent oil and soya
de-oiled cakes (DOC) market, and the company's limited presence in
the value chain.
Facilities Ratings
---------- -------
INR150.0 Million Cash Credit BB/Stable (Reaffirmed)
INR6.5 Million Bank Guarantee P4+ (Reaffirmed)
The ratings also continue to reflect the company's small net
worth, restricting its financial flexibility, its exposure to
adverse government regulations and the susceptibility of its
operating margin to volatility in raw material prices. The
weaknesses are partially offset by the strong growth in Tania's
operating income, coupled with its easy access to raw materials,
its comfortable debt protection measures, and low working capital
requirements.
Outlook: Stable
CRISIL believes that Tania's business risk profile will continue
to be constrained by its lack of presence in the value-added
products and its relatively small net worth. The outlook may be
revised to 'Positive' in case of a substantial improvement in the
company's operating margin and cash accruals, coupled with
adequate capacity utilization and offtake. Conversely, the
outlook may be revised to 'Negative' in case of larger-than-
expected debt-funded capex, or material deterioration in operating
margin.
About Tania Industries
Tania was incorporated in 1980 by Mrs. Kamladevi Mansinghka as an
investment company. In 1998 the company switched over to soya
trading. Tania, based in Mumbai, is managed by Mr. K C Dawda, who
has been with the company since its inception. Since 2002, the
company has been in the business of manufacturing soybean solvent
oil and soya de-oiled cakes (DOC). Tania buys soya seed from
mandis in Sailu, Nagpur, Kalol, and Parmeshar (Maharashtra). The
company's production facility at Saoner (Maharashtra) has seed
crushing capacity of 500 tonnes per day (tpd). The company sells
crude soy oil to nearby refineries; it sells soya DOCs in Orissa,
West Bengal, Tamil Nadu, Karnataka and Uttar Pradesh .
Tania is estimated to report a profit after tax (PAT) of INR8.6
million on estimated net sales of INR2188.6 million for 2009-10
(refers to financial year, April 1 to March 31), against a PAT of
INR24.4 million on net sales of INR1844.8 million for 2008-09.
=================
I N D O N E S I A
=================
BANK MEGA: Fitch Affirms Individual Rating at 'D'
-------------------------------------------------
Fitch Ratings has affirmed PT Bank Mega Tbk's National Long-term
rating at 'A+(idn)', Individual Rating at 'D' and Support Rating
at '4'. The Outlook is Stable. Fitch has also affirmed at
'A(idn)' the bank's IDR1.0trn 10-year subordinated bond I/2007
issued in January 2008.
"Bank Mega's ratings reflect its satisfactory capital position and
liquid balance sheet, but at the same time recognise its
concentrated loan book, and modest profitability," notes Iwan
Wisaksana, Director with Fitch's Financial Institutions group.
The bank's reported gross non-performing loan ratio fell to 1.5%
at end-H110 (end-2009: 1.7%), mainly due to loan growth and
remedial actions through more intense monitoring and
restructuring. However, restructured loans remained high at 8.7%
of loans in H110, though lower than 2009's 9.1%, given the bank's
exposure to large corporate accounts. NPL reserve coverage
declined to 81% at end-H110 (2009: 90%), a level which Fitch
believes is still satisfactory, given generally supportive
economic conditions.
Profitability remained lower than its rated peers mainly due to
lower net interest margins and higher operating costs; NIM fell to
4.6% at end-H110 (2009: 5.1%) mainly due to reclassification of
marketable securities to trading book where the revenues
previously recognised as interest income are now recognized as
non-interest income, and the decline in lending rates. Bank
Mega's low-cost savings and demand deposits accounted for 59% of
the bank's total deposits in H110 (2009: 52%). Fitch notes the
bank's reclassification of all its marketable securities from
Hold-to-Maturity to tradable securities potentially introduces
more earnings volatility to its moderate profitability.
The bank has a liquid balance sheet, given its loan-to-deposit
ratio of 63% (2009: 57%), which is not excessive. This mitigates
Fitch's concern over its funding profile given a modest franchise.
Bank Mega accounts for 1%-2% of banking system assets.
Bank Mega's capital adequacy ratio was 17.7% at H110 (2009: 18.0%)
which is satisfactory for supporting further loan growth. Tier 1
CAR was also reasonably healthy at 14.8% at H110 (2009: 14.4%).
In Fitch's view, maintaining a Tier 1 CAR at these levels is
important for the bank's credit profile given its aspirations for
loan growth.
The bank's IDR1.0 trillion 10-year subordinated bond I/2007 is
rated 'A(idn)', which is a notch lower than its National Long-term
rating to reflect its subordinated status and the absence of
coupon deferral features.
Bank Mega was established in 1969 and, at end-H110, was among the
15 largest banks in Indonesia by assets. It was acquired by the
privately-owned Para Group in 1996. After a public listing in
2000 and subsequent rights issues, Para Group's stake was diluted
to 57.82% at end-June 2010.
=========
J A P A N
=========
JLOC 36: S&P Downgrades Ratings on Various Classes of Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class B, C1, and C2 floating-rate secured notes issued under the
JLOC 36 LLC transaction and removed them from CreditWatch with
negative implications. S&P placed on CreditWatch negative the
rating on class B on Sept. 21, 2010. As for the ratings on
classes C1 and C2, which S&P placed on CreditWatch negative on
June 21, 2010, S&P has maintained them on CreditWatch negative
even after S&P 1owered them on Sept. 21, 2010. S&P also affirmed
its ratings on classes A1 through A3, D, and X notes issued under
the same transaction.
Out of the 34 loans that initially backed the transaction, eight
loans (the eight loans originally represented a combined 12% or so
of the total initial issuance amount of the notes) have been
repaid by their respective maturity dates, and seven loans (the
seven loans originally represented a combined 23% or so of the
total initial issuance amount of the notes) have defaulted.
Out of the seven defaulted loans, two loans (the two loans
originally represented a combined 2% or so of the total initial
issuance amount of the notes) have been fully repaid. Meanwhile,
the liquidation of the properties backing two of the five loans
that have yet to be recovered has been finalized. Since proceeds
from the sales of the properties backing each loan are likely to
be less than the respective amounts of the two loans (the amounts
for the portions of the loans that back the rated notes), S&P
expects the principal of the two loans to be impaired, although
the amount of loan loss has yet to be fixed. In addition, the
servicer is still proceeding with the liquidation of the
properties backing three other defaulted loans. There remain 24
loans including these five defaulted loans.
S&P downgraded classes B, C1, and C2 because:
When S&P placed/maintained classes B, C1, and C2 on CreditWatch
with negative implications in September 2010, S&P said that S&P
viewed the recovery prospects of two of the transaction's
remaining loans with uncertainty. This time, S&P lowered its
assumption with respect to the likely collection amount from the
related collateral properties after considering a number of
factors, including the performance of the properties in question,
as well as the situation regarding real estate deals involving
similar asset types. S&P currently assume the combined value of
the properties that S&P revised this time to be about 71% of its
initial underwriting value; and
S&P lowered its assumption with regard to the likely collection
amount from the property backing one of the defaulted loans that
has yet to be recovered (the loan originally represented about 8%
of the total initial issuance amount of the notes) after
considering the situation regarding the collection procedures of
the loan by the servicer. S&P currently assume the combined value
of the property that S&P revised this time to be about 59% of its
initial underwriting value.
S&P affirmed its ratings on classes A1 to A3 given the current
level of credit enhancement for these classes.
JLOC 36 LLC is a multi-borrower CMBS transaction. The notes were
originally secured by 34 nonrecourse loans, which were originally
backed by 99 real estate properties. The transaction was arranged
by Morgan Stanley Japan Securities Co. Ltd., and Premier Asset
Management & Loan Services Corp. is the transaction servicer. The
ratings address the full and timely payment of interest and the
ultimate repayment of principal by the transaction's legal final
maturity date in February 2016 for the class A1 to A3 notes, the
full payment of interest and ultimate repayment of principal by
the legal final maturity date for the class B to D notes, and the
timely payment of available interest for the class X notes.
Ratings Lowered, Off Creditwatch Negative
JLOC 36 LLC
JPY59.1 billion equivalent secured notes due February 2016
Class To From Initial Issue Amount
----- -- ---- --------------------
B AA- (sf) AA (sf)/Watch Neg JPY6.8 bil.
C1 BB+ (sf) BBB- (sf)/Watch Neg JPY3.6 bil.
C2 BB+ (sf) BBB- (sf)/Watch Neg JPY24,250,000
Ratings Affirmed
Class Rating Initial Issue Amount
----- ------ --------------------
A1 AAA (sf) JPY29.05 bil.
A2 AAA (sf) JPY65,300,000
A3 AAA (sf) $8,000,000
D CCC- (sf) JPY4.3 bil.
X (IO) AAA (sf) JPY59.1 bil. (initial notional principal)
* Interest-only
The issue date was May 9, 2007.
JLOC 37: S&P Downgrades Ratings on Various Classes of Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class A1 to C2 notes issued under the JLOC 37 transaction and
removed them from CreditWatch with negative implications, where
they were placed on Oct. 8, 2010. At the same time, S&P affirmed
its rating on classes D1, D2. S&P also withdrew its rating on
class X in accordance with its updated criteria for rating
interest-only securities, which S&P published on April 15, 2010.
The transaction was initially backed by loans, which were extended
to 10 obligors. Now, only the loans that were extended to five of
the 10 obligors (the loans extended to five obligors originally
represented about 57% of the total initial issuance amount of the
notes) remain. In addition, with regard to the remaining loans
(the loan extended to five obligors), the loans that were extended
to four of the five obligors have defaulted (the loans extended to
four obligors originally represented about 41% of the total
initial issuance amount of the notes).
S&P lowered and removed from CreditWatch with negative
implications the ratings on classes A1 to C2 because:
S&P lowered the assumption that S&P had made as of October 2009
with respect to the likely collection amount from the properties
backing the loans that have defaulted (the loans extended to four
obligors) after considering a number of factors, including the
progress of collection, as well as the situation regarding real
estate deals involving similar types of assets. In reviewing
S&P's ratings this time, S&P assumed the combined value of the
properties to be about 58% of S&P's initial underwriting value.
Likewise, S&P lowered its assumption with regard to the likely
collection amount from the property backing a performing loan
extended to one obligor maturing in December 2011 (the loan
originally represented about 16% of the total initial issuance
amount of the notes), after taking into account a number of
factors, including the performance of the property, as well as the
situation regarding real estate deals involving similar types of
assets. In reviewing S&P's ratings this time, S&P assumed the
value of the property to be about 78% of its initial underwriting
value.
S&P has withdrawn its rating on class X in accordance with its
updated criteria for rating IO securities.
The notes were originally secured by loans extended to 10
obligors, which were initially backed by 61 real estate properties
and real estate trust certificates. The transaction was arranged
by Morgan Stanley Japan Securities Co. Ltd. ORIX Asset Management
& Loan Services Corp. acts as the servicer for this transaction.
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 January 2015 for the class A1 and A2 notes,
and the full payment of interest and ultimate repayment of
principal by the legal maturity date for the class B1 to D2 notes.
Ratings Lowered, Off Watch Negative
JLOC 37 LLC
JPY81.22 billion notes issued on July 11, 2007, due January 2015
Class To From Initial Issue Amount
----- -- ---- --------------------
A1 A+ (sf) AA (sf)/Watch Neg JPY53,800 mil.
A2 A+ (sf) AA (sf)/Watch Neg JPY12.1 mil.
B1 BB+ (sf) BBB (sf)/Watch Neg JPY7,900 mil.
B2 BB+ (sf) BBB (sf)/Watch Neg JPY4.85 mil.
C1 B- (sf) B+ (sf)/Watch Neg JPY7,000 mil.
C2 B- (sf) B+ (sf)/Watch Neg JPY8.45 mil.
Ratings Affirmed
Class Rating Initial Issue Amount
----- ------ --------------------
D1 CCC (sf) JPY8,000 mil.
D2 CCC (sf) JPY1.95 mil.
Rating Withdrawn
Class Rating Initial Notional Principal
----- ------ --------------------------
X AAA (sf) JPY81,22 bil.
* Fitch Downgrades Ratings on Various Beneficiary Interests
-----------------------------------------------------------
Fitch Ratings has downgraded the class C and D trust beneficiary
interests from Cafes 4 Trust due November 2011 and simultaneously
withdrawn the ratings. The transaction is a Japanese single-
borrower CMBS securitization. The details of the rating actions
are:
-- JPY0.55bn* Class C TBIs downgraded to 'Csf' from 'CCsf' and
withdrawn; Recovery Rating revised to 'RR6' from 'RR5'; and
-- JPY0.95bn* Class D TBIs downgraded to 'Csf' from 'CCsf' and
withdrawn; Recovery Rating of 'RR6'.
* as of November 12, 2010.
Class X TBIs (dividend-only), rating of 'AAAsf' with a Stable
Outlook has also been withdrawn.
Fitch has downgraded the class C and D TBIs, reflecting that a
principal loss on these classes is inevitable as a result of work-
out activities of the defaulted loan. This transaction was
secured by a single loan backed by a single property located in
Tokyo, which is used for both office and retail purposes. The
loan defaulted in October 2009 and the property was sold in
September 2010, at a price much lower than the remaining
underlying loan balance. The loan principal was repaid from the
sales proceeds and the TBIs principal was repaid accordingly. The
servicer has already finished its work-out activities and
principal loss on the class C and D TBIs will occur following the
determination of the underlying loan principal loss amount.
Fitch will no longer receive sufficient information from the
trustee to monitor the transaction, and has, hence, decided to
withdraw its ratings on both the class C and D TBIs.
The class A and B TBIs were paid in full on the November 2010
payment date.
The rating on the dividend-only Class X TBIs, which addresses only
the likelihood of receiving dividends, while principal on the
related TBIs remains outstanding, has been withdrawn.
===============
M A L A Y S I A
===============
KENMARK INDUSTRIAL: Ferrier Hodgson Resigns as Financial Adviser
----------------------------------------------------------------
Kenmark Industrial Co. (M) Berhad said Ferrier Hodgson MH Sdn Bhd
on November 11, 2010, resigned as the Financial Adviser of the
Company.
Kenmark Industrial Co. (M) Berhad is a Malaysia-based company.
The Company is engaged in the manufacturing of computer
workstations, cabinets, furniture; printing of packaging
materials; the distribution of consumer products, and investment
holding. The Company is also engaged in plastic injection for
furniture parts, and assembly and distribution of liquid crystal
display (LCD). It exports its products to the United States,
Europe, Japan and Australia. The Company's wholly owned
subsidiaries include Kenmark Paper Sdn. Bhd., which is engaged in
manufacturing plastic parts for wooden furniture and cabinets, and
investment holding; Kenmark (Labuan) Limited, which is engaged in
international trading, commission agent and investment holding;
Phoenix International Group Limited, which is engaged in trading
in electronic devices, and Billion Dynamic Sdn. Bhd., which is
engaged in the assembling and trading of electronic devices.
* * *
Kenmark Industrial Co. (M) Berhad has been classified a Practice
Note 17 company based on the criteria set by the Bursa Malaysia
Securities Bhd after it triggered Paragraph 2.1(f) of the Listing
Requirements. The Company's major subsidiaries have defaulted on
some of their banking facilities. The Company is also unable to
provide a solvency declaration.
The High Court on October 14, 2010, entered an order to wind up
the operations of Kenmark Industrial Co (M) Berhad under the
provisions of the Companies Act, 1965. The court appointed Mak
Kum Choon and Yeoh Siew Ming both of Messrs. Deloitte Corporate
Solutions Sdn Bhd as liquidators for Kenmark Industrial Co (M)
Berhad.
NAM FATT: Unit Sells Lands With Great Doctrine and Teka Maju
------------------------------------------------------------
Nam Fatt Corporation Berhad disclosed that Maddusalat Berhad, a
wholly owned subsidiary of the company, on November 11, 2010,
entered into:
a) a Sale and Purchase Agreement with Great Doctrine (M)
Sdn. Bhd. for the disposal of three parcels of lands
at Kelab Golf Sultan Abdul Aziz Shah, Shah Alam,
Selangor Darul Ehsan and described as Pajakan Negeri
11895, Lot 741, Pajakan Negeri 11896, Lot 742 and
Pajakan Negeri 11891, Lot 736 all Seksyen 13, Bandar
Shah Alam, Daerah Petaling, Negeri Selangor Darul
Ehsan for MYR43 million; and
b) a Sale and Purchase Agreement with Teka Maju Sdn. Bhd.
for the disposal of a parcel of land known as Pajakan
Negeri No. 11894, Lot No. 740, Section 13, Bandar Shah
Alam, Daerah Petaling, Negeri Selangor Darul Ehsan for
MYR25 million.
Maddusalat Berhad is principally engaged in owning and developing
golf resort and recreation amenities, property development and
property management.
The company said it is in the midst of formulating a proposed
scheme of compromise with its creditors. The disposals are for
the purpose of resolution with its creditors under the proposed
scheme.
The net proceed after deducting expenses for the disposal of Lot
740 would be utilized to partially repay outstanding loan granted
by OCBC Bank (Malaysia) Berhad and Ambank (M) Berhad to Nam Fatt
Construction Sdn Bdh. Upon the partial repayment of the
outstanding loan, OCBC BANK will discharge the charge created on
Lot 740 in favor of itself as security agent.
The disposals are subject to the approval of shareholders of Nam
Fatt at an Extraordinary General to be convened.
The disposals are expected to be completed within six months from
the date of the Sale and Purchase Agreement.
About Nam Fatt
Nam Fatt Corporation Berhad is a Malaysia-based company. The
principal activities of the Company consist of investment holding
and construction of bridges, heavy concrete foundations, roads,
factory complexes and other similar construction activities. The
Company operates in four business segments: engineering and
construction, property, leisure, and manufacturing. The Company's
subsidiaries include Nam Fatt Fabricators Sdn. Bhd., which is
engaged in the construction of bridges, heavy concrete
foundations, roads, factory complexes and similar construction
activities; Agenda Istimewa Sdn Bhd, which is engaged in property
development; P & N Construction Sdn. Bhd. which is engaged in the
business of general contractors; Nam Fatt Marketing Sdn. Bhd.,
which is a sales distributor and marketing agent, and Maddusalat
Berhad, which is the owner and developer of golf resort and its
recreational amenities, property developer, and property manager.
* * *
Nam Fatt Corporation Berhad has been classified as an Affected
Listed Issuer under Practice Note 17 of the Listing Requirements
of Bursa Malaysia Securities Berhad.
The Company has triggered Paragraph 2.1(f) of the Practice Note 17
of the Main Market Listing Requirement of Bursa Malaysia following
failure to meet its principal and interest payment of
MYR13,225,037.39 due and payable on March 15, 2010, in respect of
the Asset Sale Agreement dated December 4, 2007, between Bank
Kerjasama Rakyat Malaysia Berhad and Nam Fatt.
====================
N E W Z E A L A N D
====================
BRIDGECORP LTD: Last-Minute Cash Transfer Blamed for Demise
-----------------------------------------------------------
Tim Hunter at Business Day reports that the last-minute transfer
of millions in cash from Australia to New Zealand contributed to
huge losses for investors in an Australian arm of Bridgecorp
Finance.
According to the report, another questionable loan transaction
between the two may have left New Zealand investors with the worst
part of the deal.
The report notes that receivers of Bridgecorp Finance told
debenture investors this month they will get just A5.6 cents in
the dollar after the company's high risk property lending,
particularly to developments by former Australian test cricketer
Craig McDermott, proved unrecoverable.
Bridgecorp Finance, the report says, owes debenture investors
AU$19.5 million (US$24.8 million).
The report notes that among concerns raised by receiver Brian
Silvia of BFI Ferrier was the transfer of AU$3.7 million from the
company's bank account in the month before its receivership on
July 3, 2007, although the company's accounts showed the money was
still in Australia.
According to the report, the cash went to Bridgecorp Ltd, which
collapsed on June 2, 2007, owing debenture investors AU$459
million. The report says none of the money has been returned to
the Australian company.
The report notes that complicating the picture was its sale during
the previous year of poor quality property loans to an Australian
subsidiary of Bridgecorp Ltd.
The cash it received helped repay Australian investors, but the
buyer -- ultimately New Zealand-based Bridgecorp -- appears to
have been saddled with a series of poorly performing loans with a
book value of AU$40.5 million, the report adds.
About Bridgecorp
Based in New Zealand, Bridgecorp Ltd. is a property development
and finance company. Bridgecorp has been placed in receivership
on July 2, 2007, after failing to pay principal due to debenture
holders. In that regard, John Waller and Colin McCloy, partners
at PricewaterhouseCoopers, were appointed as receivers.
Bridgecorp owes around 1,800 debenture holders, which liquidators
estimate to approximate NZ$500 million.
Bridgecorp's nine Australian companies were placed into voluntary
administration, owing about 100 investors about AU$24 million
(NZ$27 million).
E-GAS LTD: Gov't. Issues Backstop Regulations to Protect Consumers
------------------------------------------------------------------
The New Zealand government has announced backstop regulations to
address potential difficulties arising from the liquidation of gas
retailer E-Gas Ltd., The National Business Review reports.
NBR relates that the Gas Governance (Insolvent Retailers)
Regulations 2010, which took effect November 16, will provide
transition arrangements for customers of insolvent gas retailers
where there is a risk those customers could end up without a
retailer.
According to NBR, Energy and Resources Minister Gerry Brownlee
said in a press release that the regulations would "protect
consumers and provide certainty and reduce risk for industry
participants."
"Circumstances dictated that the regulations be made without the
consultation and assessment requirements that would normally be
undertaken by the Gas Industry Company (GIC)," NBR quoted Mr.
Brownlee as saying. "I have asked the GIC to advise me on the
form and content of permanent backstop regulations once it has
completed the usual consultation and assessment processes," Mr
Brownlee said.
E-Gas went into voluntary liquidation last month, just prior to a
Rulings Panel hearing that would have penalized it for breaching
an industry rule related to data provision -- now on hold until
further notice.
An investigator's report released this month indicates that E-Gas
may have breached five additional gas industry rules prior to
entering liquidation, while an earlier audit found that the
company had over-charged thousands of customers.
A liquidators' committee, including major industry players, has
been appointed to determine the next step for the company.
E-Gas Ltd, E-Gas Services Ltd and E-Gas 2000 Ltd went into
voluntary administration on October 18, 2010, and the joint
liquidators are Stephen Tubbs, Brian Mayo Smith and Jeff Hart of
BDO Chartered Accountants.
E-Gas -- http://www.e-gas.co.nz/-- is a private and independent
gas retailer in New Zealand. The company retails natural gas to
more than 7,000 gas consumers in the North Island.
SOUTH CANTERBURY: Blogger Files SFO Complain Over $150-Mln Deal
---------------------------------------------------------------
Niko Kloeten at The National Business Review reports that a
complaint has been lodged with the Serious Fraud Office and the
Securities Commission over a NZ$150 million deal between South
Canterbury Finance and its parent company months before it fell
over.
The NBR says the complainant, blogger David Hillary, has been a
close follower of the South Canterbury Finance situation since
well before it collapsed in August owing $1.6 billion.
The NBR relates Mr. Hillary, in his complaint, delivered Nov. 17,
claimed that South Canterbury management overstated the equity
injection from its deal with Southbury Corporation by as much as
NZ$140 million.
According to the NBR, Mr. Hillary's analysis found that instead of
the NZ$152.5 million in equity South Canterbury's management
credited to the company from the transaction, a complete
accounting would be to credit only NZ$11.8 million in new equity.
The NBR relates Mr. Hillary also claimed some officials in
Treasury knew the deal was virtually worthless but did nothing to
stop the transaction or remove South Canterbury from the Deposit
Guarantee Scheme for what he described as a "scandalous
transaction".
Mr. Hillary, the NBR notes, highlighted a recent comment in
Parliament by Associate Finance Minister Steven Joyce, who said
"Treasury's view of the transaction was that at worst it made no
difference to the Crown."
According to the NBR, Mr. Hillary also questioned where a document
written by Northington Partners to Treasury about the transaction
had gone, pointing out that it hadn't been released by the
Treasury.
The complaint, the NBR notes, alleged the planning,
representation, approval, execution and reporting of the
transaction may have breached the Crimes Act 1961, the Financial
Reporting Act 1993, the Companies Act 1993, the Securities Act
1978, and/or the Fair Trading Act 1986.
"Basically what came in the front door went out the back door" in
the transaction," Mr. Hillary told the NBR.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on-
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance.
On August 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under heightened
surveillance since 2008. As part of that, SCF was granted a
Trustee waiver in February 2010 to allow it time to recapitalize.
Unfortunately, the Company's Directors have advised us that they
have not been successful with respect to a recapitalization and
requested us to appoint a receiver. At this point we, as Trustee,
agree that it is the best interests of debenture, deposit and bond
holders to do that," said Yogesh Mody, Southern Regional Manager
for Trustees Executors Limited.
The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.
===============
X X X X X X X X
===============
* S&P Puts Ratings on CDO Tranches on CreditWatch Positive
----------------------------------------------------------
Standard & Poor's Ratings Services placed the ratings on two Asia-
Pacific (excluding Japan) collateralized debt obligation tranches
on CreditWatch with positive implications.
To assess the creditworthiness of each class, S&P reviewed the
credit quality of the securitized assets using synthetic rated
overcollateralization scores and results from supplemental tests.
These results measure the degree by which the credit enhancement
of a tranche exceeds the stressed loss rate assumed for a given
rating scenario.
Tranches placed on CreditWatch positive had SROC scores that are
greater than 100% at the current rating level, and at a higher
rating level, with sufficient cushion (based on the maximum
scenario loss rate, largest obligor test, and largest industry
test). SROC scores rising above 100% reflect an improvement in
the credit quality of the underlying portfolio. In addition,
substitutions in the ARLO SKL 11 portfolio have also contributed
to an improvement in portfolio credit quality.
Castle Finance I Ltd.
Rating To Rating From
--------- -----------
Series 2 CCC (sf)/Watch Pos CCC (sf)
ARLO Ltd. Series 2006
Rating To Rating From
--------- -----------
(SKL CDO Series 11) BBp (sf)NRi/Watch Pos BBp (sf)NRi
NRi - Interest payments are not rated.
P - Rating is on the principal amount
Notes:
1. Where the final price on defaulted reference names in CDO
portfolios is not known, S&P's analysis takes into
consideration the auction results for these names from the
International Swaps and Derivatives Association, Inc.
2. In accordance with the criteria for rating CDO transactions,
certain factors such as credit stability and rating
sensitivity to modeling parameters may be considered in
assigning ratings to CDO tranches, in addition to the
supplemental tests, the Monte Carlo default simulation
results, and the associated cash flow modeling. Such risks in
transactions may be assessed on a case-by-case basis and the
ratings may be qualitatively adjusted to a rating level
different than that indicated by the various quantitative
results. The tranches' final ratings reflect the result of
any such qualitative adjustments.
The Global SROC Report with the SROC analysis as at end-August
2010 will be published shortly. In the week following the
publication of the report, a full review of the affected tranches
of Asia-Pacific synthetic CDOs will be performed and appropriate
rating actions, if any, will be taken. The Global SROC Report
provides SROC and other performance metrics on more than 3,000
individual CDO tranches.
*********
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 ***