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T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, November 19, 2010, Vol. 13, No. 229
Headlines
A U S T R A L I A
PERPETUAL TRUSTEE: Moody's Assigns 'Ba2' Rating to Class E Notes
C H I N A
CENTRAL CHINA: Moody's Assigns 'B1' Rating to Senior Bonds
H O N G K O N G
MOLESWORTH INVESTMENTS: Seng and Lo Step Down as Liquidators
OKI SEMICONDUCTOR: Members' Final General Meeting Set for Dec. 17
PO WING: Members' Final Meeting Set for December 23
POSSEHL (HK): Creditors' Proofs of Debt Due December 13
SHANGHAI KELANTAN: Creditors' Proofs of Debt Due December 10
SKY EVER: Members' Final Meeting Set for December 13
SMART ERA: Creditors' Proofs of Debt Due December 11
SUPREME WIND: Creditors' Proofs of Debt Due December 10
VIBE INTERIORS: Members' Final Meeting Set for December 18
WACHOVIA ADVISORS: Creditors' Proofs of Debt Due December 10
WESTLB SECURITIES: Commences Wind-Up Proceedings
WONG CHING: Creditors' Proofs of Debt Due December 3
YOUSP LIMITED: Wan and Lin Step Down as Liquidators
I N D I A
AHMEDNAGAR DISTRICT: CRISIL Places 'B-' Rating on INR92.6MM Loan
AKSH EDUCATIONAL: CRISIL Rates INR70 Million Term Loan at 'D'
DEFIANCE KNITTING: CRISIL Ups INR15MM Cash Credit Rating to 'BB+'
DKI APPAREL: CRISIL Upgrades Rating on INR165MM Term Loan to 'BB+'
GUPTA METAL: CRISIL Assigns 'BB' Rating to INR12.9MM Term Loan
JAMMU AND KASHMIR: Fitch Affirms 'D' Individual Rating
JINDAL MEDICOT: CARE Rates INR74.75cr LT Loan at 'CARE BB+(SO)'
LAKSHMI VILAS: Fitch Affirms 'D/E' Individual and Support Ratings
LALJI HANDICRAFTS: CRISIL Places 'P4+' Rating on INR70MM Loan
LITEROOF HOUSING: CRISIL Upgrades Rating on INR160.4MM Loan to 'B'
LOURDES TEXTILES: CRISIL Assigns 'D' Rating to INR86.8MM Term Loan
REMSONS INDUSTRIES: CRISIL Reaffirms 'BB' Rating on INR9MM Loan
S K GOLD: CRISIL Reaffirms 'B' Rating on INR100 Mil. Cash Credit
SHIVA METALLOYS: CRISIL Reaffirms 'B+' Ratings on Various Debts
SRIPATHY ASSOCEATES: CRISIL Reaffirms 'B+' Rating on INR2.5MM Loan
SYNDICATE BANK: Moody's Gives Stable Outlook on 'D+' Rating
J A P A N
JAPAN AIRLINES: Restructuring Body Warns Union Against Strike
JAPAN AIRLINES: Reveals New Executive Appointments
JAPAN COMMERCIAL: S&P Downgrades Ratings on Various Notes
L-JAC 8: Moody's Reviews Ratings on Various Classes of Certs.
N E W Z E A L A N D
ALLIED FARMERS: HSBC Appoints Receivers to Matarangi Beach Unit
DORCHESTER PACIFIC: Swings to Profit in Six Months Ended Sept. 30
E-GAS LTD: Liquidators Expect to Sell E-Gas Business Soon
OTAIHAPE HEALTH: Goes Into Voluntary Liquidation
P A K I S T A N
* Moody's Issues Sovereign Report on Pakistan; Retains 'B3' Rating
P H I L I P P I N E S
BANK OF THE PHILIPPINE: Fitch Affirms 'BB' Issuer Default Rating
T A I W A N
CATHAY DUN: Fitch Places Certificates on Rating Watch Negative
X X X X X X X X
* Large Companies With Insolvent Balance Sheets
- - - - -
=================
A U S T R A L I A
=================
PERPETUAL TRUSTEE: Moody's Assigns 'Ba2' Rating to Class E Notes
----------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to notes
issued by Perpetual Trustee Company Limited in its capacity as
trustee of the SMART Series 2010-2 Trust.
Issuer: SMART Series 2010-2 Trust
-- $A80M Class A-1 Note, Definitive Rating Assigned P-1 (sf)
-- $A360M Class A-2 Notes, Definitive Rating Assigned Aaa (sf)
-- $A11.25M Class B Notes, Definitive Rating Assigned Aa2 (sf)
-- $A13.75M Class C Notes, Definitive Rating Assigned A2 (sf)
-- $A12.5M Class D Notes, Definitive Rating Assigned Baa1 (sf)
-- $A12.5M Class E Notes, Definitive Rating Assigned Ba2 (sf)
The AUD10.0 million Seller Notes are not rated by Moody's.
The transaction is a securitisation of a portfolio of Australian
novated leases, commercial hire purchase agreements, chattel
mortgages and finance leases secured by motor vehicles and
commercial equipment, originated by Macquarie Leasing Pty Limited.
Ratings Rationale
In broad terms SMART Series 2010-2 Trust replicates structures
seen in previous SMART transactions sponsored by Macquarie. The
pool includes a high percentage of novated leases (60%). Moody's
considers novated leases to have a lower level of risk than other
contract types and this is a positive feature of the transaction.
Similarly to past SMART and other Australian ABS transactions, the
deal includes only a small percentage of non-motor-vehicle
equipment types (9.4%). In Moody's opinion, motor vehicles
exhibit less pro-cyclical default patterns and, on average, higher
recovery rates. As a result, Moody's views the SMART 2010-2 Trust
pool as conservatively structured.
In order to fund the purchase price of the revolving portfolio,
the Trust will issue seven classes of notes. The notes will be
repaid on a sequential basis in the initial stages (until the
subordination percentage increases from the initial 12.0% to
19.9%) and after a pool factor of 10% is reached. At all other
times, the structure will follow a pro rata repayment profile.
Moody's base case assumptions are a default rate of 1.85% and a
recovery rate of 40%. These imply an expected (net) loss of 1.1%.
Both the default rate and the recovery rate have been stressed
relative to observed historical levels of 1.32% and 50-55%
respectively.
The ratings address the expected loss posed to investors by the
legal final maturity. The structure allows for timely payment of
interest and ultimate payment of principal by the legal final
maturity.
Assumption Volatility Scores and Parameter Sensitivities
The V Score for this transaction is Low/Medium, which is in line
with the score assigned for the Australian ABS sector. Among
other factors, Moody's note the availability of a substantial
amount of historical performance data in the Australian ABS market
as well as on an issuer-by-issuer basis. Here, for instance,
Moody's have been provided with detailed vintage and individual
default data for the 1998-2009 period. In addition, Moody's
observe that Australian auto ABS, and specifically past SMART
transactions, have to date been performing stably. This allows
Moody's to have a material degree of comfort with regard to
assumptions made in rating the SMART Series 2010-2 Trust.
V Scores are a relative assessment of the quality of available
credit information and of the degree of uncertainty around various
assumptions used in determining the rating. High variability in
key assumptions could expose a rating to more likelihood of rating
changes. The V Score has been assigned accordingly to the report
"V Scores and Parameter Sensitivities in the Asia/Pacific RMBS
Sector", published in March 2009.
Parameter Sensitivities are designed to provide a quantitative
calculation of how the initial rating might change if key input
parameters used in the initial rating process - here, the expected
loss and the Aaa credit enhancement - differed. The analysis
assumes that the deal has not aged. Parameter Sensitivities only
reflect the ratings impact of each scenario from a
quantitative/model-indicated standpoint.
In the case of SMART Series 2010-2 Trust, the Class A-2 Notes
remain strongly investment grade when the default rate rises to
3.70% (double of Moody's assumption of 1.85%). Similarly, high
investment grade ratings are maintained when the base recovery
rate is stressed from the assumed 40% to 20% (holding other
factors, including the assumed default rate of 1.85% constant).
Moody's Investors Service did not receive or take into account a
third party due diligence report on the underlying assets or
financial instruments in this transaction.
=========
C H I N A
=========
CENTRAL CHINA: Moody's Assigns 'B1' Rating to Senior Bonds
----------------------------------------------------------
Moody's Investors Service has assigned a definitive B1 senior
unsecured bond rating to the US$300 million 12.25% notes due 2015
issued by Central China Real Estate Ltd.
The definitive rating confirms the provisional rating assigned to
this debt on October 6, 2010.
Moody's has also affirmed the company's Ba3 corporate family
rating. The rating outlook is stable.
Ratings Rationale
"Central China's Ba3 corporate family rating reflects the
company's leading market position and long operating history -- 18
years -- in Henan province, where the property markets have been
fairly stable and housing demand is growing," says Kaven Tsang, a
Moody's Assistant Vice President and Analyst.
"The Ba3 rating also reflects the greater predictability and
stability of operating performance of Central China in comparison
to its property peers," says Tsang.
"The Ba3 rating additionally takes into account the involvement of
Capitaland (unrated), which has a 27% stake in, and holds its two
seats on board of, Central China."
However, the company's geographical concentration in a province
with a developing economy exposes it to constraints in bank credit
availability, which could slow sales.
In addition, its scale -- in terms of revenue and capital -- is
small in comparison to its peers, which constrains the ratings and
positions it weakly at the Ba3 rating level.
Central China's bond rating is notched down to B1 due to the
subordination risk arising from the amount of subsidiary debt.
The ratio of secured and subsidiary debt to total assets was 26%
as of 30 June 2010, and Moody's expects the ratio to remain around
20% for the coming two to three years.
The stable outlook reflects Moody's expectation that Central
China's liquidity will be sufficient to fund its projects and
cover its debt payments; that the company will remain focused in
Henan and its vicinity; and that it will maintain its disciplined
approach to land acquisitions.
Upward rating pressure will be limited over the near term.
However, the possibility of an upgrade could emerge over the
medium term if Central China (1) achieves its planned sales
targets; (2) exercises good financial discipline with respect to
the management of liquidity and debt; (3) generates solid property
sales beyond Henan; and (4) broadens its banking relationships.
With respect to credit metrics, Moody's sees EBITDA/interest
coverage consistently above 4-5x and adjusted leverage below 40-
45% as indications for a potential rating upgrade.
The rating could be pressured for a downgrade due to (1)
significant sales volatility, deviating from past performance; (2)
a material decline in its profit margin; (3) impaired liquidity or
a material rise in debt due to accelerated expansion; or (4) a
material reduction in Capitaland's stake or representation on the
board.
The potential for a downgrade could be triggered by a decline in
balance sheet cash, or EBITDA/interest below 2.5-3x and adjusted
leverage above 55% for a prolonged period.
Moody's last rating action on Central China took place on 6
October, 2010, when Moody's assigned the company a Ba3 corporate
family rating and a (P) B1 senior unsecured rating, both with a
stable outlook.
Central China Real Estate Limited is a leading property developer
in Henan Province, China. Founded in 1992, it has been listed on
the Hong Kong Stock Exchange since June 2008.
================
H O N G K O N G
================
MOLESWORTH INVESTMENTS: Seng and Lo Step Down as Liquidators
------------------------------------------------------------
Natalia Seng Sze Ka Mee and Susan Y H Lo stepped down as
liquidators of Molesworth Investments Limited on October 30, 2010.
OKI SEMICONDUCTOR: Members' Final General Meeting Set for Dec. 17
-----------------------------------------------------------------
Members of OKI Semiconductor Hong Kong Limited will hold their
final general meeting on December 17, 2010, at 5:45 p.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.
PO WING: Members' Final Meeting Set for December 23
---------------------------------------------------
Members of Po Wing Land 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.
POSSEHL (HK): Creditors' Proofs of Debt Due December 13
-------------------------------------------------------
Creditors of Possehl (HK) Holdings Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by December 13, 2010, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on November 5, 2010.
The company's liquidators are:
Wong Yuk Ying
Chan On Ki
11th Floor, Fortis Tower
77-79 Gloucester Road
Hong Kong
SHANGHAI KELANTAN: Creditors' Proofs of Debt Due December 10
------------------------------------------------------------
Creditors of The Shanghai Kelantan Rubber Estates (1925) Limited,
which is in members' voluntary liquidation, are required to file
their proofs of debt by December 10, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on November 2, 2010.
The company's liquidator is:
Lee Sik Wai Benjamin
Rms. 1612-17, Hollywood Plaza
610 Nathan Road
Kowloon, Hong Kong
SKY EVER: Members' Final Meeting Set for December 13
----------------------------------------------------
Members of Sky Ever Enterprises Limited will hold their final
general meeting on December 13, 2010, at 10:00 a.m., at 43/F., The
Lee Gardens, 33 Hysan Avenue, Causeway Bay, in Hong Kong.
At the meeting, Chan Wing Kit, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
SMART ERA: Creditors' Proofs of Debt Due December 11
----------------------------------------------------
Creditors of Smart Era (Hong Kong) Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by December 11, 2010, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on November 2, 2010.
The company's liquidators are:
Lau Shiu Wai
Sie Ki
21/F., Tai Yau Building
181 Johnston Road
Wanchai, Hong Kong
SUPREME WIND: Creditors' Proofs of Debt Due December 10
-------------------------------------------------------
Creditors of Supreme Wind Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
December 10, 2010, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on November 5, 2010.
The company's liquidators are:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Floor, Gloucester Tower
The Landmark
15 Queen's Road
Central, Hong Kong
VIBE INTERIORS: Members' Final Meeting Set for December 18
----------------------------------------------------------
Members of Vibe Interiors Limited will hold their final meeting on
December 18, 2010, at 25/F., Eastern Commercial Centre, 83 Nam On
Street, Shaukeiwan, in Hong Kong.
At the meeting, Seto Sau Kuen Christine, the company's
liquidator, will give a report on the company's wind-up
proceedings and property disposal.
WACHOVIA ADVISORS: Creditors' Proofs of Debt Due December 10
------------------------------------------------------------
Creditors of Wachovia Advisors International Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by December 10, 2010, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on October 31, 2010.
The company's liquidators are:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Floor, Gloucester Tower
The Landmark
15 Queen's Road
Central, Hong Kong
WESTLB SECURITIES: Commences Wind-Up Proceedings
------------------------------------------------
Members of Westlb Securities Pacific Limited, on October 25, 2010,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Edward Simon Middleton
Fergal Thomas Power
8th Floor, Prince's Building
10 Chater Road
Central, Hong Kong
WONG CHING: Creditors' Proofs of Debt Due December 3
----------------------------------------------------
Creditors of Wong Ching Ho Seed Company 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 4, 2010.
The company's liquidator is:
Mak Kay Lung Dantes
Rooms 2101-03
China Insurance Group Building
141 Des Voeux Road
Central, Hong Kong
YOUSP LIMITED: Wan and Lin Step Down as Liquidators
---------------------------------------------------
Wan Yiu Chung Paul and Lin Lai Har Wendy stepped down as
liquidators of YouSP Limited on October 29, 2010.
=========
I N D I A
=========
AHMEDNAGAR DISTRICT: CRISIL Places 'B-' Rating on INR92.6MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'B/Negative' rating to the bank facilities
of Ahmednagar District Goat Rearing & Processing Co-operative
Federation Ltd.
Facilities Ratings
---------- -------
INR17.5 Million Cash Credit B-/Negative (Assigned)
INR92.6 Million Rupee Term Loan B-/Negative (Assigned)
The rating reflects the vulnerability of AGFL's revenues to
adverse changes in government regulations and exposure to risks
relating to project implementation, procurement of goats, and off-
take. These weaknesses are partially offset by the benefits that
AGFL is expected to derive from its fully integrated unit, when
operational.
Outlook: Negative
CRISIL believes that high implementation and offtake risks
associated with AGFL's ongoing project will constrain the
company's credit risk profile in the near term. The rating may be
downgraded in case the federation delays servicing its term loan.
Conversely, the outlook may be revised to 'Stable' if faster-than-
expected implementation of the project leading to more-than-
expected cash accruals translates into improved debt servicing
ability.
About Ahmednagar District
AGFL was formed in 1993 with the purpose of establishing a modern
processing plant to slaughter goats and sheep supplied by members
of the federation. The AGFL proposes to construct a new modern
abattoir for sheep and goats on land of 4.80 hector with a
capacity to slaughter 1600 goats/sheep per day (200/hour). The
total cost of the project is about INR220 million which is to be
funded through Equity of INR29.4 million, Central government
subsidy of INR98.2 million and term loan of INR93.1 million.
Currently, about INR90 million of capital expenditure has been
incurred with land been procured and about 50% of the building
construction done. Also, orders for the machinery to be procured
are being placed.
The federation will also market the meat in the domestic and
export markets. AGFL has its head office in Ahmednagar city and
plant in Vadgaon Tandali in Ahmednagar district. Its shareholders
will be cooperatives and members (goat farmers).
AKSH EDUCATIONAL: CRISIL Rates INR70 Million Term Loan at 'D'
-------------------------------------------------------------
CRISIL has assigned its 'D' rating to A.K.S.H. Educational and
Research Society's term loan facility. The rating reflects delay
by AERS in servicing its term loan; the delay has been caused by
AERS's short-term cash flow mismatch.
Facilities Ratings
---------- -------
INR70.0 Million Term Loan D (Assigned)
AERS has a constrained financial risk profile as its operations
are still in the start-up phase. Also, the society depends
considerably on donations. Furthermore, its revenue growth is
susceptible to adverse regulatory changes in the education sector.
AERS, however, benefits from healthy demand prospects for the
education sector.
A.K.S.H. Educational was set up in 2005 by Mr. Arjan Singh. It
currently operates three institutes in Punjab: SBRS Gurukul (in
Moga), SBRS Senior Secondary School (in Sadik), and SBRS College
for Women (in Sadik).
SBRS Gurukul is affiliated to the Central Board of Secondary
Education and currently offers primary- and secondary-level
education. SBRS Senior Secondary School is a Punjabi-medium
school for girls, and is affiliated to Punjab State Board. The
college is affiliated to Punjab University, and offers graduation
courses in arts and computer application.
DEFIANCE KNITTING: CRISIL Ups INR15MM Cash Credit Rating to 'BB+'
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the long-term facilities of
Defiance Knitting Industries Pvt Ltd (DKI; part of the DKI group)
to 'BB+/Stable' from 'BB/Stable'. The rating on the short-term
facilities has been reaffirmed at 'P4+'.
Facilities Ratings
---------- -------
INR15.0 Million Cash Credit BB+/Stable (Upgraded from
(Reduced from INR55.0 Million) 'BB/Stable')
INR135.0 Million Proposed LT Bank BB+/Stable (Upgraded from
Loan Facility 'BB/Stable')
INR25.0 Million Packing Credit P4+
(Enhanced from INR10.0 Million)
INR15.0 Million Bill Purchase- P4+ (Reaffirmed)
Discounting Facility (Reduced
from INR24.5 Million)
INR6.0 Million Letter of Credit P4+ (Reaffirmed)
(Reduced from INR12.0 Million)
INR4.0 Million Bank Guarantee P4+ (Reaffirmed)
The upgrade is driven by improvement in the DKI group's liquidity
and financial risk profile after the prepayment of DKI's term
loan, and conversion of share application money into equity
capital, which wiped off the group's accumulated losses as of
March 31, 2010. The upgrade also factors in the improvement in the
DKI group's business profile with the commencement of garment
operations in DKI Apparel Pvt Ltd, with which the group has
diversified its product portfolio.
The ratings reflect the DKI group's modest scale of operations and
its dependence on its two largest customers for revenues. These
rating weaknesses are partially offset by the group's established
position in the readymade garment market, and its healthy
financial risk profile, marked by adequate net worth, low gearing,
and comfortable debt protection metrics.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of DKI and DKIA, together referred to as
the DKI group, as both the companies are under the same
management, in the same lines of business and have significant
operational linkages.
Outlook: Stable
CRISIL believes that the DKI group will maintain its business risk
profile over the medium term the back of its established relations
with customers and operating efficiency due to partially
integrated operations. The outlook may be revised to 'Positive'
if the group scales up its operations significantly without any
material deterioration in its capital structure and debt
protection measures. Conversely, the outlook may be revised to
'Negative' if the DKI group undertakes a large debt-funded capital
expenditure programme, thereby weakening its financial risk
profile, or if its capacity utilization is below expectations.
About the Group
Set up in 1995 by Mr. Sudhir Vora, DKI manufactures knitted
fabrics (25% of total revenues) and garments (75% of total
revenues). The company sells garments (more than 90% is
undergarments) to two major US customers -- Hanesbrand Inc and
Fruit of the Loom. The company has 250 garment stitching machines
and 26 knitting machines at its plant in Ambernath (Maharashtra).
DKIA, which was established in 2008, also manufactures garments
including both innerwear and outerwear. It commenced operations
in April, 2009 and sources its fabric requirement from DKI.
DKI, on provisional and standalone basis, reported a profit after
tax (PAT) of INR31.4 million on an operating income of INR504.5
million for 2009-10 (refers to financial year, April 1 to
March 31), against a PAT of INR39.9 million on an operating income
of INR543.5 million for 2008-09.
DKI APPAREL: CRISIL Upgrades Rating on INR165MM Term Loan to 'BB+'
------------------------------------------------------------------
CRISIL had upgraded its ratings on the long-term bank facilities
of DKI Apparel Pvt Ltd, part of the DKI group, to 'BB+/Stable'
from 'BB/Stable'; the ratings on the short-term facilities have
been reaffirmed at 'P4+'.
Facilities Ratings
---------- -------
INR165.0 Million Rupee Term Loan BB+/Stable (Upgraded from
'BB/Stable')
INR24.0 Million Bill Purchase- P4+ (Reaffirmed)
Discounting Facility
INR31.0 Million Packing Credit P4+ (Reaffirmed)
The upgrade is driven by the improvement in the DKI group's
liquidity and financial risk profile after the prepayment of
Defiance Knitting Industries Pvt Ltd's term loan, and conversion
of share application money into equity capital, which wiped off
the group's accumulated losses as of March 31, 2010. The upgrade
also factors in the improvement in business profile with the
commencement of garment operations in DKIA, with which the group
has diversified its product portfolio.
The ratings, however, continue to reflect the DKI group's modest
scale of operations and its dependence on its two largest
customers for revenues. These weaknesses are partially offset by
the group's established position in the readymade garment market,
and its healthy financial risk profile, marked by adequate net
worth, low gearing, and comfortable debt protection metrics.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of DKIA and DKI, together referred to as
the DKI group, as both the companies are under the same
management, in the same lines of business and have significant
operational linkages.
Outlook: Stable
CRISIL believes that the DKI group will maintain its business risk
profile over the medium term the back of its established relations
with customers and operating efficiency due to partially
integrated operations. The outlook may be revised to 'Positive'
if the group scales up its operations significantly without any
material deterioration in its capital structure and debt
protection measures. Conversely, the outlook may be revised to
'Negative' if the DKI group undertakes a large debt-funded capital
expenditure programme, thereby weakening its financial risk
profile, or if its capacity utilization is below expectations.
About the Group
Set up in 1995 by Mr. Sudhir Vora, DKI manufactures knitted
fabrics (25% of total revenues) and garments (75% of total
revenues). The company sells garments (more than 90% is
undergarments) to two major US customers -- Hanesbrand Inc and
Fruit of the Loom. The company has 250 garment stitching machines
and 26 knitting machines at its plant in Ambernath (Maharashtra).
DKIA, which was established in 2008, also manufactures garments
including both innerwear and outerwear. It commenced operations
in April, 2009 and sources its fabric requirement from DKI.
DKIA, on a provisional basis, reported a net loss of INR14.7
million on operating income of INR129.9 million for 2009-10
(refers to financial year, April 1 to March 31).
GUPTA METAL: CRISIL Assigns 'BB' Rating to INR12.9MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to Gupta Metal
Sheets Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR200.0 Million Cash Credit Limit BB/Stable (Assigned)
INR12.9 Million Term Loan BB/Stable (Assigned)
INR18.0 Million Overdraft Facility BB/Stable (Assigned)
INR199.1 Million Bank Guarantee P4+ (Assigned)
The ratings reflect GMSPL's weak financial risk profile, marked by
small net worth, high gearing, and poor debt protection
indicators; the ratings also factor in GMSPL's exposure to risks
relating to volatility in raw material prices, and the fragmented
nature of, and intense competition in, non-ferrous metal industry.
These rating weaknesses are partially offset by the benefits that
GMSPL derives from its longstanding presence in the copper
business, and demand from diversified end-user industries.
Outlook: Stable
CRISIL believes that GMSPL will sustain its market position in the
copper and brass market supported by diverse end user industries.
The company' financial risk profile is expected to remain weak and
its margins will remain vulnerable to adverse movements in raw
material prices. The outlook may be revised to 'Positive'in case
of substantial increase in profitability leading to a significant
improvement in the capital structure. Conversely, the outlook may
be revised to 'Negative' in case of higher-than-expected debt-
funded capex or substantial decline in margins.
About Gupta Enterprises
GMSPL (formerly, Gupta Enterprises) primarily converts copper
cathodes into copper and brass sheets and circles with an
installed capacity of 7500 tonnes per annum (tpa) at its plant in
Rewari (Haryana). It sells copper and brass sheets largely to
automobile and electric goods manufacturers.
GMSPL reported a profit after tax (PAT) of INR5.9 million on net
sales of INR1835.0 million for 2009-10 (refers to financial year,
April 1 to March 31) against a net loss of INR43.9 million on net
sales of INR1424.4 million for 2008-09.
JAMMU AND KASHMIR: Fitch Affirms 'D' Individual Rating
------------------------------------------------------
Fitch Ratings has affirmed Jammu and Kashmir Bank Ltd's National
Long-term rating at 'AA(ind)' with a Stable Outlook, Individual
rating at 'D' and its INR6 billion lower tier 2 debt programme at
'AA(ind)'. Simultaneously, Fitch has upgraded JKB's Support
rating to '3' from '4'.
JKB's National Long-term rating and the upgrade in its Support
rating reflect higher expectation of support from Government of
India given the former's continuing dominance of banking
activities in the Indian state of Jammu and Kashmir, and its
exclusive position as banker to the state government, together
with the improved fiscal position of the Indian government. The
upgrade of the Support rating is also in line with Fitch's
expectations of improved sovereign support for all state-owned
banks.
The Individual rating reflects the bank's stable financials,
driven by its strong retail deposit franchise and robust risk
management systems. It is however constrained by JKB's regionally
concentrated asset portfolio in J&K (50% loans). Also, Fitch
notes the continuing volatility in the J&K state which can affect
JKB's asset quality.
JKB has managed to sustain its asset quality in line with the
system (FY10 Gross NPL ratio: 1.97% versus 2.4% for the banking
system) due to its extensive banking network within J&K and timely
compliance; however, the agency notes that the recent disturbance
in J&K has partly contributed to a marginal rise in JKB's Gross
NPL ratio to 2.17% as at H1FY11. Fitch believes that JKB's NPL
position is likely to be volatile over the near-to-medium term
particularly if the disturbance in the state persists.
JKB's profitability has been in line with systemic averages (FY10
return on average assets: 1.28% versus 1.05% for the system) on a
risk-adjusted basis due to higher margins on its portfolio in J&K
which is concentrated in riskier sectors such as horticulture and
small industry (versus its portfolio outside J&K which is made up
mainly of high-rated corporates). In addition, the bank's low
cost to income ratio (FY10: 37%) bolstered its profits. However
JKB could face pressure on its profitability over the near term
from possibly higher credit costs and a lower operating cushion
due to its less diversified income profile (FY10 fees income: 7%
of operating income versus 12% for the system).
JKB's capitalisation is better than the systemic average - FY10
Tier 1 ratio: 12.91% versus 10.1% for the system - partly due to
its modest loan growth of around 11% between FY08-FY10. Its Tier
1 ratio is likely to fall over the near term due to possibly
greater credit costs, from a pick-up in loan growth (30% target
for FY11), and the limited scope of equity dilution by its
majority shareholder - the state government. That said, Fitch
expects the bank to maintain its overall capital adequacy ratio
(FY10: 15.89%) given its ample room to raise Tier 2 capital.
JKB's liquidity profile is strong given the weight of retail
deposits in its funding mix (over 65%) which will enable it to
maintain its interest margins and to limit its refinancing risk.
There are no significant asset-liability mismatches over short-
term buckets.
JKB's National Long-term rating is at the implicit Support Floor
based on expectation of support by GOI (via the J&K state
government). An upgrade of the National Long-term rating would be
triggered by an upgrade of the bank's Individual rating which
would be linked to an improvement in the overall situation in J&K
and its consequent benign impact on JKB's portfolio.
JKB's lower tier 2 subordinated bonds have been rated at the same
level as its National Long-term rating based on Fitch's "Criteria
for Indian National Ratings of Bank Hybrids and Subordinated
Debt", dated 18 January 2010.
JKB is a listed bank and is majority-owned by J&K's state
government (53% as of H111). It operates through 576 branches,
around 80% of which are in J&K.
JINDAL MEDICOT: CARE Rates INR74.75cr LT Loan at 'CARE BB+(SO)'
---------------------------------------------------------------
CARE assigns 'CARE BB+(SO)' ratings to bank facilities of Jindal
Medicot Ltd.
Amount
Facilities (INR crore) Ratings
--------- ----------- -------
Long-term Bank Facilities 74.75 'CARE BB+ (SO)' Assigned
Rating Rationale
JCL's ratings are constrained by elevated financial risk due to
large debt-funded diversification projects undertaken by the
company and its two wholly-owned subsidiaries; wherein JCL has
exposure as equity and guarantee for debt. The ratings of JCL also
take into consideration the working capital intensive operations,
price volatility in raw material and highly competitive nature of
the industry. However, the constraints are partially offset
by experienced promoters & management, established relationship
with dealers and achievement of financial closure for the
diversification projects of JCL as well as its subsidiaries.
Going forward, the ability of JCL to successfully execute the
expansion project within the estimated cost and time would be the
key rating sensitivity.
Incorporated in 2008, JML is a wholly owned subsidiary of JCL. JML
is setting up a manufacturing plant at Una, Himachal Pradesh (HP)
for manufacturing medical textile products (proposed annual
capacity of 5000 MTPA) like absorbent bleached cotton and
cotton crepe bandages in different varieties. The total cost of
the project is estimated at INR88cr funded through debt of INR58cr
(financial closure achieved) and equity of INR30cr.
LAKSHMI VILAS: Fitch Affirms 'D/E' Individual and Support Ratings
-----------------------------------------------------------------
Fitch Ratings has affirmed India's Lakshmi Vilas Bank's National
Long-term rating at 'BBB+(ind)' and National Short-term rating at
'F2+(ind)'. The agency has also affirmed LVB's INR1.3 billion
lower tier 2 debt programme at 'BBB+(ind)'. The Individual and
Support ratings have been affirmed at 'D/E' and '5', respectively.
The Outlook on the Long-term rating remains Stable.
LVB's Individual and Long-term ratings reflect its still weak
asset quality ratios, small and regional franchise as well as weak
profitability, which are in line with similarly rated banks.
While the bank's non-performing loan ratios improved in H1-11 (end
September 2010), challenges persist given its growth plans in
relatively new markets.
LVB's asset quality deteriorated significantly in FY10 as the bank
witnessed heightened delinquencies in multiple segments. The
delinquencies were particularly high in its corporate advances
portfolio, where few large accounts slipped into NPLs (top five
NPLs accounted for around 50% of the total gross NPLs). LVB's
gross NPLs spiked to 5.1% (H1FY11: 4.1%). Furthermore, the
delinquencies in less risky mortgage advances (FY10: around 4.5%
of total advances) also remained high (FY10: ~4.4%). While the
bank was impacted by the credit crisis, the large delinquencies
can be also partly attributed to evolving risk management
practices of the bank. LVB's expansion plans in western and
northern India, which are relatively unfamiliar territories for
the bank, continue to remain a point of concern. Though the bank
has tightened its risk management practices, the efficacy of these
measures remains to be tested.
Historically, LVB's return on assets has been lower than the
systemic average, and has remained volatile (FY10: Return on
Equity; 0.3%, H111:0.9%), primarily on account of unsteady credit
costs. Profits declined significantly in FY10 due to a sharp rise
in credit costs (around 1.3% of the gross assets).
In the past, LVB's net interest margins have been lower than its
peer's as the cost of funds remained high (partly due to a low
proportion of current and savings account deposits and the small
size of the bank), while the yields remained low as the bank had
been aggressive in pricing its loans. While the NIMs improved in
FY10 (3.0%, H111: 3.7%) as the yield on advances increased
considerably (partly on account of an increase in advances to
moderately rated clients), the rising interest rate environment
and fairly strong loan growth target of the bank are expected to
put pressure on margins.
LVB's capitalisation significantly strengthened in FY10 with
capital infusion through both equity and lower tier 2 subordinated
debt. Its Capital Adequacy Ratio was 14.8% (tier 1 12.0% -
entirely equity). The bank also has a mandate to raise additional
equity to the extent of 40% of its equity, a portion of which
could be raised in FY11. The existing strong capital along with a
planned capital infusion would support the bank's growth targets
and act as cushion in the event of any credit quality
deterioration.
Though the bank's aggressive expansion plans in relatively new
markets would enable it to diversify beyond its regional profile,
this also raises asset quality concerns and may lead to a rating
downgrade, if not managed well. The management expects asset
quality and profitability to improve on the back of improved risk
management systems, which if sustained, could result in the
Outlook being revised to Positive or even a rating upgrade.
LVB's lower tier 2 subordinated bonds have been rated at the same
level as its National Long-term rating based on Fitch's "Criteria
for Indian National Ratings of Bank Hybrids and Subordinated
Debt", dated 18 January 2010.
LVB is a south India focused, small private sector bank in India.
It operates through a network of 274 branches and lends mainly to
small-to-mid sized companies. The bank wants to increase its
lending to larger corporations. LVB is rapidly expanding its
presence in regions outside southern India, and has aggressive
growth plans.
LALJI HANDICRAFTS: CRISIL Places 'P4+' Rating on INR70MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'P4+' rating to the bank facilities of
Lalji Handicrafts.
Facilities Ratings
---------- -------
INR70.0 Million Packing Credit P4+ (Assigned)
INR20.0 Million Foreign Bill Purchase P4+ (Assigned)
The rating reflects LH's healthy financial risk profile marked by
a moderate gearing and satisfactory debt protection measures, and
established track record in the wooden furniture export industry.
These rating strengths are partially offset by LH's exposure to
risks related to its working-capital-intensive, and small scale
of, operations.
Set up in 1980 by Mr. R P Singhal, LH is a proprietorship firm in
Jodhpur (Rajasthan). The firm produces and exports handicraft
items. It mainly deals in furniture and handicrafts items of wood,
brass, iron, copper, and silver. LH is an export-oriented unit,
with sales mainly to the US, Europe, Thailand, and Singapore.
LH reported a profit after tax (PAT) of INR15.7 million on net
sales of INR150.1 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR6.5 million on net sales
of INR146.2 million for 2008-09.
LITEROOF HOUSING: CRISIL Upgrades Rating on INR160.4MM Loan to 'B'
------------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Literoof
Housing Ltd to 'B/Stable' from 'D'.
Facilities Ratings
---------- -------
INR160.4 Million Long-Term Loan B/Stable (Upgraded from D)
INR39.0 Million Cash Credit B/Stable (Upgraded from D)
The upgrade reflects timely servicing of term debt obligations by
Literoof over the six months through August 2010, on the back of
an improvement in its financial risk profile and liquidity. The
improvement was largely driven by healthy revenues posted by the
company during the first half of 2010-11 (refers to April 1 to
March 31) and improved debtor management. Literoof has reported
revenues of INR100 million for the aforementioned period as
against INR130 million for 2009-10. Its operating margin is
expected to be maintained at over 40% over the medium term. CRISIL
believes that Literoof's cash accruals over the medium term will
be sufficient to meet its maturing debt obligations.
The ratings reflect Literoof's working-capital-intensive
operations, average debt protection metrics, and expected
deterioration in its financial risk profile because of its large,
debt funded capital expenditure (capex) plans for the medium term.
These rating weaknesses are partially offset by Literoof's good
customer relationships.
Outlook: Stable
CRISIL believes that Literoof will sustain its revenue growth
while maintaining its margins at current levels over the medium
term. The outlook may be revised to 'Positive' if Literoof
reports more-than-expected revenues, supported by increased
capacity utilization, while maintaining its margins, and further
improvement in its working capital management leading to a
sustained increase in its cash flows. Conversely, the outlook may
be revised to 'Negative' if the company undertakes larger-than-
expected debt-funded capex programme, leading to deterioration in
its capital structure, or if there is a sharp decline in its
margins.
About Literoof Housing
Since its inception in 2000, Literoof has been engaged in real
estate construction. In 2006, the promoter, Mr. M Mohammed Ansari
changed the line of business to manufacturing of cement hollow
blocks and paver blocks.
The company has setup its manufacturing unit in Chennai with
machinery from MASA AG, Germany; the unit has annual capacity to
manufacture around 18 million hollow blocks. Literoof procures
cement, aggregates, and additives, and sells its products to
residential and commercial real estate developers and civil
contractors in Chennai.
Literoof reported a profit after tax (PAT) of INR0.9 million on
net sales of INR129.0 million for 2009-10, against a PAT of INR0.6
million on net sales of INR130.0 million for 2008-09.
LOURDES TEXTILES: CRISIL Assigns 'D' Rating to INR86.8MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of
Lourdes Textiles Pvt Ltd. The rating reflects the delay by the
LTPL in servicing its term loan; the delay has been caused by the
LTPL's weak liquidity.
Facilities Ratings
---------- -------
INR130.0 Million Cash Credit D (Assigned)
INR86.8 Million Rupee Term Loan D (Assigned)
LTPL, incorporated in April 1997 by Mr. John Mantosh, is into
organised retail business with a thrust on garment sales.
LTPL has eight stores, covering an aggregate of around 56,343
square feet of built-up space in Kolkata and Salt Lake City,
Kharagpur, and Siliguri (all in West Bengal). All the stores of
LTPL, except one, are rented, leased, or on commission from third
parties, some of which are owned by Mr. John Mantosh and family.
The company caters primarily to the lower-middle income group.
Mr. Mantosh owns large, high-value properties in and around
Kolkata, under companies which are owned by him and his wife.
LTPL reported a profit after tax (PAT) of INR29 million on net
sales of INR557 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR36 million on net sales
of INR473 million for 2008-09.
REMSONS INDUSTRIES: CRISIL Reaffirms 'BB' Rating on INR9MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Remsons Industries Ltd
(RIL, part of the Remsons group) continue to reflect the Remsons
group's average financial risk profile, which is constrained by
the group's proposed large debt-funded capital expenditure (capex)
programme, and the susceptibility of its margins to volatility in
raw material prices and pricing pressures from original equipment
manufacturers. These rating weaknesses are partially offset by
the group's established market position in the control cable
industry.
Facilities Ratings
---------- -------
INR85.0 Million Cash Credit BB/Stable (Reaffirmed)
INR9.0 Million Term Loan BB/Stable (Reaffirmed)
INR6.0 Million Bank Guarantee/ P4+ (Reaffirmed)
Letter of Credit
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of RIL and Remsons Cable Industries Pvt
Ltd, together referred to as the Remsons group. This is because
RIL and RCIPL's unit in Daman (it has two units, one each in Daman
and Uttaranchal) are to be merged in 2011-12 (refers to financial
year, April 1 to March 31).
Outlook: Stable
CRISIL believes that the Remsons group will benefit from the
increased demand in the automobile industry, supported by its
established market position in the control cables industry. The
outlook may be revised to 'Positive' if the Remsons group scales
up its operations and increases its net worth. Conversely, the
outlook may be revised to 'Negative' if the group undertakes a
larger-than-expected debt-funded capex programme, leading to
decline in its capital structure and debt protection metrics.
Update
For April to September 2010, RIL reported revenues of INR380
million with an operating margin of around 5%. The margin
declined from 9% in 2009-10 because of rising input costs and
inability of the company to pass on the cost increase to its
customers. CRISIL expects RIL's margins in the near term to be
around the current level. The capacity expansion is progressing
without time or cost overrun.
RCIPL was formed as a separate company to avail sales tax
benefits, which ended in October 2009. RIL and RCIPL's Daman unit
are to be merged in 2011-12. RCIPL's Uttaranchal unit will not be
merged as it is still availing sales tax benefits. Furthermore,
the scale of operations at the Uttaranchal unit is small, with
sales of INR14 million in 2009-10.
For 2009-10, the Remsons group reported a profit after tax (PAT)
of INR28.52 million on net sales of INR760.88 million, against a
PAT of INR17.53 million on net sales of INR614.04 million for
2008-09.
About the Group
Set up as Remsons Cables in May 1971, RIL was reconstituted as a
public limited company in October 1986, and its name was changed
to the current one in November 1986. In April 2005, three firms
-- Daman Auto Industries, Rems Auto Engineers, and Remsons Auto
Industries -- were amalgamated with RIL. RIL manufactures control
cables, brake liners, and brake shoes at its units in Gurgaon and
Daman. Its major customers in India include Hero Honda Motors Ltd,
Tata Motors Ltd, Piaggio Vehicles Pvt Ltd, Maruti Suzuki India
Ltd, and General Motors India Pvt Ltd; it also supplies control
cables to clients in the US and Europe. RIL has two manufacturing
units, one each in Gurgaon and Daman. The company has undertaken
an expansion programme at its Daman unit entailing a capex of
INR170 million, to be incurred in two phases: INR70 million in
2010-11 and INR100 million in 2011-12.
RCIPL's manufactures the same products as RIL and caters only to
the replacement market. It has two manufacturing units, one each
in Daman and Uttaranchal.
S K GOLD: CRISIL Reaffirms 'B' Rating on INR100 Mil. Cash Credit
----------------------------------------------------------------
CRISIL has reaffirmed its ratings of 'B/Stable' on the bank
facilities of S.K Gold Chain Company Private Limited.
Facilities Ratings
---------- -------
INR100 Million Cash Credit B/Stable (Reaffirmed)
CRISIL's ratings on the bank facilities of SK continues to reflect
the company's weak financial risk profile, marked by low net
worth, high gearing and below-average debt protection measures,
and exposure to risks relating to fluctuations in the prices of
gold. These weaknesses are, however, partially offset by SK's
established presence in the jewellery business, and the benefits
it derives from the experience of its promoters, and the low
credit risks in the wholesale jewellery business.
Outlook: Stable
CRISIL believes that SK will maintain a stable business risk
profile over the medium term on the back of the experience of the
promoters in the jewellery industry. The outlook may be revised
to 'Positive' if the company's capital structure improves
substantially, owing to improvement in net worth. Conversely, the
outlook may be revised to 'Negative' if the company undertakes
large, debt-funded capital expenditure.
Summary Update
The company started manufacturing and wholesaling of diamond
studded gold jewellery in FY2009-10 and did about INR10-12crore
(out of total revenue of INR58crore in FY2009-10) of revenue in
this segment in the year. The company is presently focusing more
on the manufacturing, trading and wholesaling of diamond studded
gold jewellery as the acceptability level of this category of
jewellery has risen due to soaring gold prices and increased
income levels of households. SKGCPL is planning to venture into
export of diamond jewellery and has participated in India
International Jewellery Show (IIJS) organized by Gem and Jewellery
Export Promotion Council (GJEPC) organized in New Delhi and Jaipur
in FY2010-11, where the company displayed designs of both diamond
and CZ jewellery.
About S.K Gold Chain
SK, established in 1998 by Mr. Suresh Kumar Verma, manufactures
and sells gold and fashion jewellery in the domestic market. The
company began with the manufacture of gold chains, and in 2002,
shifted to gold jewellery manufacturing. The company mainly
manufactures and sells Cuban Zirconia (CZ) studded gold jewellery.
SK reported a profit after tax (PAT) of INR1.4 million on net
sales of INR582.7 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.9 million on net
sales of INR453.3 million for 2008-09.
SHIVA METALLOYS: CRISIL Reaffirms 'B+' Ratings on Various Debts
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Shiva Metalloys
International Ltd (SMIL)continue to ratings reflect SMIL's weak
financial risk profile, exposure to risks relating to volatility
in nickel prices leading to price risk. These weaknesses are,
however, mitigated by the benefits that SMIL derives from
established relationships with its suppliers and customers.
Facilities Ratings
---------- -------
INR110.0 Million Cash Credit Limit B+/Stable (Reaffirmed)
INR50.0 Million Letter of Credit B+/Stable (Reaffirmed)
INR100.0 Million Letter of Credit P4 (Reaffirmed)
Update
SMIL has reported decline in sales by 7.4 per cent to INR759.5 in
2009-10 (refers to financial year, April 1 to March 31) from
INR820.6 million in 2008-09, in line with CRISIL's expectation.
However, the company's operating margins have increased to 4.1 per
cent in 2009-10 as compared to 2.2% in 2008-09 driven primarily by
increasing nickel prices. Company has maintained its financial
risk profile with high ratio of Total Outstanding Liabilities to
Tangible Net Worth (TOLTNW) of 3 times and weak debt protection
measures; with interest coverage of 1.66 times. SMIL does not
hedge its foreign exchange exposure and books forwards
opportunistically. CRISIL believes that company's operating
margins remain susceptible to volatility in nickel prices and its
profitability margins remain vulnerable to rupee dollar exles of
INR820.6 million for 2008-09.
SMIL has reported profit after tax (PAT) of INR13.3 million on net
sales of INR759.5 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.3 million on net
sales of INR820.6 million for 2008-09.
Outlook: Stable
CRISIL believes that SMIL will maintain a stable business risk
profile on the back of established relationships with suppliers
and clients. However, the company's financial risk profile is
expected to remain weak owing to high TOLTNW resulting from large
working capital requirements. The outlook may be revised to
'Positive' if SMIL manages its working capital effectively, and if
its profitability and top line increase. Conversely, the outlook
may be revised to 'Negative' if the company's profitability
deteriorates significantly, exerting pressure on already weak debt
protection measures.
About Shiva Metalloys
Incorporated in 1982 by Mr. Suresh Kumar Chawla, SMIL (formerly,
Shiva Metals) converted to a limited company in 1990. It trades
in non-ferrous metal alloys, primarily nickel, zinc, tin, and
lead.
SRIPATHY ASSOCEATES: CRISIL Reaffirms 'B+' Rating on INR2.5MM Loan
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sripathy Assoceates
continue to reflect Sripathy's below-average financial risk
profile marked by small net worth, and limited revenue diversity.
Facilities Ratings
---------- -------
INR2.50 Million Long-Term Loan B+/Negative (Reaffirmed)
INR40.00 Million Cash Credit Limit B+/Negative (Reaffirmed)
INR80.00 Million Bank Guarantee Limit P4 (Reaffirmed)
The ratings also factor in the firm's small scale of operations,
and its vulnerability to volatility in raw material prices and to
intense competition in the infrastructure construction industry.
These rating weaknesses are partially offset by the experience of
Sripathy's management in the construction industry.
Outlook: Negative
CRISIL believes that Sripathy's financial risk profile will remain
weak over the medium term because of stretched liquidity, marked
by high utilization of bank lines and negligible cash balances.
The ratings may be downgraded if the firm's revenues and margins
decline, it faces significant cost or time overruns in its
projects, or it undertakes a large, debt-funded capital
expenditure programme. Conversely, the outlook may be revised to
'Stable' in case of a significant improvement in Sripathy's
working capital management, or if the firm scales up its
operations while diversifying its revenue base and improving its
financial risk profile.
Update
Sripathy's financial performance in 2009-10 (refers to financial
year, April 1 to March 31) was better than CRISIL's expectations.
The firm's turnover increased by 121 per cent to INR 600 million
during the year, from INR271 million in 2008-09, on the back of
healthy order flows. Its operating margin increased to around 10
per cent in 2009-10 from 8 per cent in 2008-09. Sripathy's
operating margin has been volatile, and is likely to remain so due
to the tender-based nature of its business. The firm's net worth
and gearing improved on account of healthy accruals, to
INR97 million and 0.6 times, respectively, as on March 31, 2010,
from INR80 million and 1 time, respectively, a year earlier.
Sripathy's liquidity, however, continues to remain weak on account
of high working capital requirements. Its bank limits have
remained completely utilized, with occasional overdrawn limits,
over the 12 months through July 2010. CRISIL believes that
Sripathy liquidity will remain weak due to high working capital
requirements, unless the bank limits are increased.
About Sripathy Assoceates
Set up in 1989 and based in Erode (Tamil Nadu), Sripathy is a
partnership firm with six partners. The firm undertakes civil
contracts, primarily for construction of colleges, buildings, and
roads for government departments.
For 2009-10, Sripathy's profit after tax (PAT) is estimated at
INR36 million on net sales of INR600 million, as against a
reported PAT of INR7 million on net sales of INR271 million for
2008-09.
SYNDICATE BANK: Moody's Gives Stable Outlook on 'D+' Rating
-----------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on Syndicate Bank's D+ bank financial strength rating and
Baa2/P-2 global local-currency deposit ratings. Its foreign-
currency deposit ratings of Ba1/Not-Prime (constrained by India's
FC deposit ceiling) have not been affected as they already carried
a stable outlook.
In addition, Moody's has also assigned provisional (P) ratings to
Syndicate Bank's updated MTN programme of US$1 billion with these
instruments:
- Senior unsecured notes rated (P) Baa2
- Subordinated notes recognised as Lower Tier 2 rated (P) Baa3
- Junior subordinated notes recognised as Upper Tier 2 rated (P)
Ba1
- Perpetual non-cumulative notes recognised as Hybrid Tier 1
rated (P) Ba2
Ratings Rationale
"The change in the rating outlook was prompted by the bank's
recent strengthening of its core capital, which is supported by
stronger profitability through its higher net interest margin,"
says Nondas Nicolaides, Moody's lead analyst for Syndicate Bank.
"As the economic activity in India regains high growth momentum,
Moody's expect Syndicate Bank's capacity to absorb any unforeseen
losses through its recurring earnings and equity base to gradually
increase, which will underpin its D+ BFSR and stable outlook.
Moody's believes that under its new leadership Syndicate Bank has
been able to consolidate its position over the last six quarters
by rationalizing its cost of deposits and moderating its loan
growth, while enhancing its financial fundamentals," adds Mr.
Nicolaides.
Syndicate Bank had a capital adequacy ratio of 12.2% and a Tier 1
ratio of 8.13% -- excluding half-year net profit -- at the end of
September 2010, with the corresponding figures at 12.75% and
8.75%, respectively including half-year net profit. As a public-
sector bank, Syndicate Bank has applied to the government for
capital funds of up to INR17 billion (US$379 million) and is
hoping to receive part of these funds before the end of the fiscal
year (March 2011). This possible infusion by the Indian
Government is expected to further improve Syndicate Bank's Tier 1
ratio. The Indian government has been recapitalizing its PSBs,
which are at least 51% government-owned, in an effort to provide
them with at least an 8% Tier 1 ratio.
Results for the first six-months of FY2011 ending September 2010
indicate that Syndicate Bank's net income increased year-on-year
by 14.4%, with its NIM improving significantly to 3.32% from
2.12%. The gross non-performing loans ratio remained stagnant at
2.24% with a provisioning coverage ratio of 73% as of September
2010 based on the Reserve Bank of India's guidelines.
Although current trends support a stable outlook, Moody's notes
that negative rating pressure could resurface if Syndicate bank
were unsuccessful in its request for additional capital from the
government, while at the same time, its loan portfolio were to
resume pre-crisis growth rates. Similarly, the bank's ratings
could come under pressure if it fails contain the accretion of new
NPL or its current NIM proves to be unsustainable. Conversely,
Syndicate bank's ratings could benefit from sustained improvements
in profitability and quality of earnings through higher fee
income, once there is a marked improvement in asset quality.
The last rating action on Syndicate Bank was implemented on 17
December 2009, when Moody's upgraded the bank's long-term FC
deposit rating to Ba1 from Ba2 -- alongside all rated Indian banks
-- following a similar rating action on the corresponding
sovereign ceiling .
Syndicate Bank is headquartered in Bangalore, India, and had total
assets of INR1,374 billion (US$30.6 billion) at end-September
2010.
=========
J A P A N
=========
JAPAN AIRLINES: Restructuring Body Warns Union Against Strike
-------------------------------------------------------------
The Nikkei reports that a state-backed bankruptcy administrator
threatened to withhold its planned capital injection into Japan
Airlines Corp. if its unions continue moving toward a strike in
protest of planned job cuts.
At a news conference Wednesday, The Nikkei relates, cabin crew
union officials criticized the Enterprise Turnaround Initiative
Corp. of Japan's action as "serious interference in labor
affairs."
According to The Nikkei, JAL's cabin crew union is voting until
Monday on the right to strike in protest of the carrier's decision
to terminate employment contracts with flight attendants and
pilots. Should a majority of the membership vote in favor, the
union will be authorized to call a strike, The Nikkei notes.
The Nikkei reports that the ETIC said in a labor-management
meeting Tuesday that it would cancel the JPY350 billion investment
scheduled under the airline's rehabilitation plan unless the union
backed down, according to union officials.
"If the right to strike is exercised and causes JAL's operations
to halt, it may damage the company's value as a business," an ETIC
official was quoted as saying by the union officials, The Nikkei
reports. "We cannot put public funds at risk," this official
explained.
The turnaround body has also issued a similar warning to JAL's
pilot union, The Nikkei adds.
About Japan Airlines
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
Japan Airlines Corporation, Japan Airlines International Co.,
Ltd., and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization January 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in New
York (Bankr. S.D.N.Y. Case No. 10-10198). The Company estimated
debts at $28 billion.
JAPAN AIRLINES: Reveals New Executive Appointments
--------------------------------------------------
The JAL Group resolves to achieve a swift corporate recovery
without backsliding and in its progress forward, JAL announced
Wednesday a change in its organizational structure. In order to
realize an effective and speedy revitalization, JAL aims to create
a leaner financial constitution that firstly fulfills the
condition of maintaining the highest levels of safety in its
operation, and will put in place a new organizational structure
including a change in the board of executive officers from
December 15, 2010.
1. Organizational Change
In this new organizational structure, each department will have to
take full responsibility for their respective business'
functionalities. To realize this, all departments will be
classified as a profit generating unit (Managing Division of Route
Marketing, Managing Division of Passenger Sales, and Cargo and
Mail Division) or a business support unit (Flight Operations,
Engineering and Maintenance, Cabin Attendants, Airport Operations,
and other general management divisions) and the corporate
foundations of JAL will be built on the profitability of each of
these units. All unnecessary layers and redundant functionalities
will be abolished to speed up the decision-making process within
the company, in order to sensitively react and adjust to the ever
changing environment.
The newly established Managing Division of Route Marketing will
work closely with other business units to formulate the Route
Profitability Plan, and is responsible to ensure execution of the
plan to achieve target profits.
The Managing Division of Passenger Sales will be task with
creating sales strategies based on the business plan generated by
the Managing Division of Route Marketing and will be held
accountable for the profitability of various channels such as
sales to agencies, corporate clients, direct sales as well as
regionally.
Cargo and Mail Division will continue drawing up corporate plans
mainly based on the utilization of belly space available on the
Group's passenger flights, and remains an integral part of the JAL
Group as a business unit answerable for both revenue and profit.
Operational units such as flight crew, cabin attendants and
airport staff will continue striving to safeguard customer
satisfaction through safe flight operations and quality service.
Other general management divisions which include Corporate
Planning, Purchasing, Human Resources, newly formed divisions -
Corporate Control, Finance and Accounting, General Affairs, and
Group Companies Support, will jointly support the entire
corporation to bring about a strong enhancement to the overall
management capabilities and operational efficiency of JAL Group.
2. New Executive Appointments
A review of the current board of executive officers was conducted
to better define responsibilities and increase motivation so as to
realize an effective organizational reform as described above.
Newly assigned executives will take office from December 15, 2010.
The appointed executives, together with each and every staff in
JAL Group will strive in unity, day after day, to continue
providing valued customers with the highest levels of flight
safety and air transport services. At the same time, JAL Group
will fervently pursue the soonest possible attainment of a
complete recovery of its business, and may further fine-tune the
organizational structure as well as review the Group's lineup of
Vice Presidents.
A copy of JAL's New Organizational Structure and Change of
Executive Officers is available for free at:
http://press.jal.co.jp/en/release/201011/001681.html
About Japan Airlines
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
Japan Airlines Corporation, Japan Airlines International Co.,
Ltd., and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization January 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in New
York (Bankr. S.D.N.Y. Case No. 10-10198). The Company estimated
debts at $28 billion.
JAPAN COMMERCIAL: S&P Downgrades Ratings on Various Notes
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class A to D floating-rate notes issued under the Japan Commercial
Real Estate Funding CMBS 2007-1 G.K. transaction, and affirmed its
ratings on classes E and X TK Investment. At the same time, S&P
removed the ratings on classes A to E from CreditWatch with
negative implications, where they were placed on Oct. 7, 2010.
S&P downgraded classes A to D and removed classes A to E from
CreditWatch with negative implications because:
In October 2009, S&P revised downward its assumption with regard
to the likely collection amount from the two underlying loans and
one underlying specified bond (the two loans and the specified
bond originally represented a combined 46% of the total initial
issuance amount of the notes), which S&P regarded as "loans in
default". This time, S&P has again revised its assumption with
regard to the two loans and the specified bond in question, after
considering information obtained from the servicer regarding the
progress of collection, and the collection plan for the two loans
and the specified bond.
S&P reviewed its assessment of the recovery prospects for the
properties backing the three other underlying loans and three
other specified bonds (the three loans and the three specified
bonds originally represented a combined 54% of the total initial
issuance amount of the notes) after considering a number of
factors, including (1) the performance of the properties, (2) the
types and location of the properties, and (3) the situation
regarding real estate deals involving similar types of assets.
Accordingly, S&P lowered its assumption with respect to the likely
collection amount from the properties in question.
JCREF CMBS 2007-1 is a multiborrower CMBS transaction. The notes
were originally secured by five nonrecourse loans and four
specified bonds extended to nine obligors. The nonrecourse loans
and specified bonds were initially backed by 56 real estate
properties. The transaction was arranged by Barclays Capital
Japan, and Premier Asset Management Co. is the transaction
servicer.
Standard & Poor's ratings address the full and timely payment of
interest and the ultimate full repayment of principal by the
transaction's legal final maturity in December 2015 for the class
A notes, the full payment of interest and repayment of principal
by the transaction's legal final maturity for the class B to E
notes, and the timely payment of available interest for the class
X TK Investment.
Ratings Lowered, Off Creditwatch Negative
JCREF CMBS 2007-1 G.K.
JPY58.2 billion commercial mortgage-backed floating rate notes
due December 2015
Class To From Initial Issue Amount Coupon
----- -- ---- -------------------- ------
A AA (sf) AAA (sf)/Watch Neg JPY39.3 bil. Floating
Rate
B BBB+ (sf) AA- (sf)/Watch Neg JPY6.2 bil. Floating
Rate
C BB- (sf) BBB (sf)/Watch Neg JPY5.3 bil. Floating
Rate
D B- (sf) BB (sf)/Watch Neg JPY4.7 bil. Floating
Rate
Rating Affirmed, Off Creditwatch Negative
JCREF CMBS 2007-1 G.K.
Class To From Initial Issue Amount Coupon
----- -- ---- -------------------- ------
E B- (sf) B- (sf)/Watch Neg JPY2.7 bil. Floating
Rate
Rating Affirmed
JCREF CMBS 2007-1 G.K.
Class Rating
----- ------
X (TK Investment) AAA (sf)
L-JAC 8: Moody's Reviews Ratings on Various Classes of Certs.
-------------------------------------------------------------
Moody's Japan K.K. has placed its ratings on the L-JAC 8 Class A,
B, and X trust certificates under review for possible downgrade.
Details are:
Deal Name: L-JAC 8Trust
-- Class A, Ba1 (sf) placed under review for possible downgrade;
previously, downgraded to Ba1 (sf) from A1 (sf) on April 1,
2010
-- Class B, Caa2 (sf) placed under review for possible
downgrade; previously, downgraded to Caa2 (sf) from B2 (sf)
on April 1, 2010
-- Class X, Ba1 (sf) placed under review for possible downgrade;
previously, downgraded to Ba1 (sf) from A1 (sf) on April 1,
2010
L-JAC 8Trust, effected in March 2008, represents the
securitization of two non-recourse loans. The final maturity of
the trust certificates will take place in January 2013.
One loan, which had been placed under special servicing in July
2009, was paid down, although it incurred losses in March 2010.
The transaction is currently secured by the second loan maturing
in December 2010, which is backed by a retail property located
outside Tokyo.
Moody's is reviewing its recovery assumptions, in the event that
the loan is placed under special servicing.
In its review, Moody's will re-assess -- and add further stress to
-- its recovery assumptions for the property, incorporating its
operating status and the prospects for refinancing.
====================
N E W Z E A L A N D
====================
ALLIED FARMERS: HSBC Appoints Receivers to Matarangi Beach Unit
---------------------------------------------------------------
Matarangi Beach Estates Limited, a wholly owned subsidiary of
Allied Farmers Ltd, on November 12, 2010, received notice from
HSBC cancelling MBEL's term loan facility, thereby requiring the
facility (currently $19.08 million including outstanding interest
and fees) to be repaid.
The MBEL HSBC loan facility has been in default since December 18,
2009, when Allied Farmers Limited acquired MBEL and refused to
provide a circa NZ$23 million parent guarantee to substitute those
still in place from entities associated with the Hanover Group.
"Despite being in default, MBEL and Allied Farmers Limited have
both, until the request for immediate repayment was made,
supported the asset and actively promoted solutions to restructure
the loan," Allied Farmers said in a statement.
"This has included proposing various debt restructuring plans to
HSBC over the past 11 months."
In addition, Allied Farmers said it has marketed the property
since its acquisition and a recent sales campaign run by Bayleys
yielded no offers.
MBEL is a special purpose subsidiary of Allied Farmers Investments
Limited whose only asset is the Matarangi Beach Estates property
which includes an operating golf course, completed residential
sections and a tract of undeveloped land.
HSBC has no recourse to any other Allied Farmers' group entity in
relation to the outstanding loan facility.
"Agreement on restructuring the loan has not been reached between
HSBC and MBEL, and consequently MBEL has advised HSBC that Allied
Farmers Limited is not prepared to provide further support to MBEL
in order to continue its operations or repay the loan, and
accordingly MBEL no longer has the financial capacity to do so."
"The Directors of MBEL have therefore requested that HSBC appoint
a Receiver to MBEL, and HSBC has agreed to this request and
appointed KordaMentha," Allied Farmers said.
The most recent registered valuation of the MBEL assets was $26.1
million (gross of debt) as at May 2010, resulting in a carrying
value (i.e. net of debt) of $7.9 million as at balance date (30
June 2010). Even though the MBEL assets are being managed by the
same team as under Hanover ownership, the gross value has
diminished by $19.6 million from the $45.8 million gross value
attributed to the asset in the June 30, 2009, Hanover financial
statements. Those statements were audited by KPMG, reviewed by
Hanover's trustee NZ Guardian Trust, and relied on by Allied
Farmers Limited at the time of acquisition.
Allied Farmers Limited Managing Director, Rob Alloway said "it
seems obvious to us that the value of these assets in the audited
June 30, 2009, financial statements, on which Hanover debenture
holders were entitled to rely at the time of acquisition, was
unrealistic, as there is no way that the market for this type of
asset has deteriorated that much in such a short time frame".
"This is an unfortunate trend we have seen with most of the
property and loan assets that were acquired, and further calls
into question the real value of the shareholder support package
contributed by Messrs Hotchin and Watson at the time of the
Hanover moratorium. The investment community should have expected
far better oversight of the moratorium from Hanovers directors,
valuers, trustees and auditors".
Mr. Alloway said "it is also disturbing to us that in the days
leading up to the receipt of the repayment demand from HSBC, we
were, with the knowledge of HSBC, approached by Mr. Kerry
Finnigan, representing an entity owned by Messrs Hotchin and
Watson, proposing a purchase of the MBEL assets for the loan value
of circa NZ$19 million.
"Investors can draw their own conclusions as to whether it was a
coincidence that when we refused to sell the asset back to Hotchin
and Watson, HSBC, who in Mr. Finnigan's own words have a "strong
relationship" with Hotchin and Watson entities (HSBC banks both
Bendon and Cullen Investments), immediately moved to demand
repayment. The HSBC loan on MBEL we understand is also still
guaranteed by entities associated with Hotchin and Watson".
"The directors of MBEL will be keeping a close eye on any likely
sales process by the Receiver to ensure the best value is achieved
for the asset for the benefit of our shareholders. We would be
disappointed if it turned out that HSBC's demand for repayment was
simply designed to enable the return of the asset to Hotchin and
Watson interests at a vast discount to the value they transferred
it to us in just November last year".
Allied Farmers said it is awaiting an assessment from the Receiver
of the likelihood of recovery above the level of the NZ$19 million
debt, but reiterates that a further reduction in value is likely.
About Allied Farmers
Based in New Zealand, Allied Farmers Limited (NZE:ALF) --
http://www.alliedfarmers.co.nz/-- is engaged in livestock, real
estate, finance, wool brokering and manufacturing (meat and
timber). Rural Services comprises livestock, merchandise and real
estate operations. The Company's Rural Services activities are
carried out in Taranaki, Waikato, King Country and Manawatu. Its
Financial Services activities are carried out by Allied Nationwide
Finance Limited in Auckland, Wellington and Christchurch. Timber
processing comprises the Company's discontinued sawmilling
operations. On June 29, 2007, Allied Nationwide Finance Limited,
Nationwide Finance Limited and Allied Prime Finance Limited were
amalgamated, with Nationwide Finance Limited being the continuing
entity. Nationwide Finance Limited subsequently changed its name
to Allied Nationwide Finance Limited.
DORCHESTER PACIFIC: Swings to Profit in Six Months Ended Sept. 30
-----------------------------------------------------------------
Dorchester Pacific Limited disclosed unaudited interim results for
the six month period to September 30, 2010, reporting a net profit
after tax of NZ$15.7 million (2009 $8.5 million loss).
The major item contributing to the profit was the Fair Value
Adjustment arising from the Capital Reconstruction Plan approved
by investors in June 2010. The restructuring involved a complex
set of transactions to effect forgiveness of Debenture
liabilities, issue of 4 securities (Property Trust Units, 2013
Notes, Shares and Options), a buy-back of the Subordinated Notes
and a $10.3 million capital raising.
Executive Director & CEO Paul Byrnes said, "The transactions that
were part of our capital restructuring plan have now all been
successfully completed with all costs written off. As at
September 30, 2010, we have a clean balance sheet with positive
Shareholder Funds of more than NZ$25 million, which is slightly
ahead of forecast. In the last three months our focus has turned
to business growth and the operating performance of our Dorchester
Finance and Dorchester Life businesses and this is helping to
drive our improved performance".
Dorchester's 5 Year Prospective Financial Statements prepared as
part of the Capital Reconstruction Plan showed an operating loss
before Fair Value Adjustment of some NZ$3 million after tax in the
first year to March 2011 followed by a slightly better than break-
even result for year 2 and a profit above NZ$4 million in Year 3.
Mr. Byrnes added: "At the AGM in early September we were able to
advise that we were trading ahead of budget by NZ$500,000 after
the first quarter. It is pleasing to note that this reported half
year operating result of NZ$921,000 loss is ahead of budget by
more than NZ$1 million.
"Dorchester Finance and Dorchester Life contributed equally to the
better than expected interim group result. Dorchester Finance
cash collections and bad debts recovered on the legacy Senate
motor vehicle book have consistently been ahead of forecast and
new lending demand has been stronger than expected from the
business sector.
"We now expect close to 50% of the new lending receivables book to
be commercial loans with the balance being our more traditional
motor vehicle lending.
"Dorchester Life has begun to expand its sales agent force,
including establishing a new team in Christchurch. The business
also launched a new Group Life Insurance product in October, with
further products expected to launch as the Company looks for
additional growth opportunities in the sector. Within its
existing portfolio of products, SuperLife Savings and Insurance
sales activity is expected to further pick up in the run up to
Christmas".
Mr. Byrnes concluded: "Looking ahead, while we wouldn't at this
stage promise to beat the forecast 2nd half operating result by
the same margin, we do anticipate at least holding on to the first
half gains. We will continue to look for prudent growth and M & A
opportunities for the business in order to drive value for our
shareholders. With positive developments such as the new senior
appointments we have made and our increased focus on marketing the
business, we are confident that we can continue the business
rebuilding and growth momentum".
About Dorchester Pacific
Headquartered in Auckland, New Zealand, Dorchester Pacific
Limited (NZE:DPC)-- http://www.dorchester.co.nz--is a financial
solutions provider, offering complementary products and services
across finance, insurance, savings and investments. The Finance
division provides investment opportunities through secured
debenture stock and subordinated unsecured notes, and financing
solutions for the property, business, equipment, motor vehicle
and personal finance sectors. Its insurance and savings
division provides a range of savings, life insurance, reverse
annuity mortgages, home equity release loans and other financial
products and services. The Investment Service division includes
equity investment advisers and sharebrokers, MoneyOnline and NZ
Investor Magazine, which provide professional, independent
investment advice, sharebroking and financial planning services.
Dorchester Pacific holds a 25% shareholding in St. Laurence
Limited, the holding company for a property-based investment and
finance group of companies, which manages assets for over 16,000
investors.
* * *
Dorchester Pacific reported three consecutive net losses of
NZ$19.1 million, NZ$25.4 million and NZ$18.1 million for the years
ended March 31, 2008, 2009 and 2010, respectively.
E-GAS LTD: Liquidators Expect to Sell E-Gas Business Soon
---------------------------------------------------------
The liquidators of E-Gas Limited are hoping to sell the retailer
shortly, and say new regulations introduced in haste will not
affect the prospects of a sale, tvnz.nz reports.
According to tvnz.nz, spokesman Jeff Hart said liquidators from
BDO Chartered Accountants had been working with wholesale
suppliers to protect the interests of E-Gas's customers.
A number of bidders had made offers to buy the E-Gas business and
liquidators expected to achieve a sale shortly, tvnz.nz says.
The Troubled Company Reporter-Asia Pacific, citing The National
Business Reviews, reported on November 18, 2010, that the
New Zealand government announced backstop regulations to address
potential difficulties arising from the liquidation of E-Gas.
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 the regulations would "protect consumers and provide
certainty and reduce risk for industry participants."
"We have seen the new regulations and can categorically say that
they do not impact upon on our ability to achieve a sale," tvnz.nz
quoted Mr. Hart as saying.
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.
OTAIHAPE HEALTH: Goes Into Voluntary Liquidation
------------------------------------------------
John Maslin at Wanganui Chronicle reports that Otaihape Health
Limited has gone into voluntary liquidation. John Whittfield, of
Pukekohe-based company CSM Business Solutions, has been appointed
liquidator for OHL.
Mr. Whittfield told Wanganui Chronicle it was too early to predict
what a final outcome might be.
Wanganui Chronicle relates Mr. Whittfield said employees would
still be paid and services, including primary and aged care, would
continue for the immediate future until a number of issues had
been resolved.
According to Wanganui Chronicle, the trust governing the service,
which includes primary and aged residential services in the town,
announced in May it was in financial strife. In August, Wanganui
Chronicle says, the Whanganui District Health Board agreed to
provide a support package, valued at close to half a million
dollars, to cover the budget deficit (most of it to cover wages)
as well as write off rent arrears of more than NZ$400,000.
Directors of Otaihape Health said the WDHB had offered a financial
support package to them on September 2 but this included some
conditions to be met by October 31. The directors, as cited by
Wanganui Chronicle, said they could not meet those conditions and
on November 7 they went to the trustees of Otaihape Health Trust
to seek a resolution to voluntarily liquidate OHL and this was
passed by a majority vote.
Wanganui Chronicle relates WDHB chief executive Julie Patterson
said she understood the trustees' decision and acknowledged how
difficult it was. Ms. Patterson said the decision would be "very
unsettling and disruptive" for the residents and their families,
staff and the whole Taihape community.
Otaihape Health Limited provides primary and aged residential
services.
===============
P A K I S T A N
===============
* Moody's Issues Sovereign Report on Pakistan; Retains 'B3' Rating
------------------------------------------------------------------
Moody's Investors Service has published its 2010 sovereign report
on Pakistan, which provides a methodological assessment of the
country's B3 foreign- and local-currency issuer rating and stable
outlook.
The main considerations for the Rating Rationale are:
1. Pakistan's modest, but, low-income and savings-constrained
economy is buffeted by large supply-side shocks;
2. Weakening governance and rising internal violence has limited
policy effectiveness;
3. Tax collection is inadequate and foreign investment is
decelerating;
4. Volatile politics and prolonged economic underperformance pose
considerable event risk; however, external financial
assistance coupled with buoyant remittances has bolstered the
external payments position, reducing the risk of a balance of
crisis in the near term.
"The outlook is stable and reflects the adequacy of Pakistan's
foreign currency reserves and its manageable domestic borrowing
program, albeit with a continued reliance on deficit
monetization," says Aninda Mitra, a Moody's Vice President and
Senior Analyst.
Mr. Mitra was speaking on the release of the annual sovereign
report on Pakistan on November 16.
He added, "Pakistan's government debt has grown on account of the
considerable amounts of external assistance it has received, but
debt dynamics remain favorable. The key risks to the stable
outlook on the B3 sovereign rating comprise a significant loss of
macroeconomic stability and a weakening of the external position,
or a persistent slowdown in growth, as well as a loss of external
support."
What Could Change the Rating - Up
Improvements in domestic and regional political stability; a
sustained improvement in external liquidity; declines in
government and external debt in relation to government revenue and
current account receipts; and a strengthening of Pakistan's
political, administrative and legal institutions.
What Could Change the Rating - Down
A substantial worsening of domestic politics or a breakdown in
Pakistan's alliance with the US; a deterioration in the policy
framework or investor confidence that results in a sizeable
diminution of foreign currency reserves, and a further
deterioration in fiscal and external balances.
Previous rating action and methodology:
Moody's last rating action on the Government of Pakistan was taken
December 12, 2008, at which time Moody's concluded a review for
possible downgrade and revised the outlook on the B3 sovereign
rating to stable.
=====================
P H I L I P P I N E S
=====================
BANK OF THE PHILIPPINE: Fitch Affirms 'BB' Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has affirmed Bank of the Philippine Islands'
ratings, including its 'BB' Long-term foreign currency Issuer
Default Rating and 'AAA(phl)' National Long-term Rating with a
Stable Outlook, as well as its 'C' Individual Rating. A full list
of rating actions can be found at the end of this release.
The Long-term IDRs, National Rating and Individual Rating of BPI
reflect its strong domestic franchise, diversified earnings
profile, sound balance-sheet strength and prudent management.
Fitch notes that while the National Rating is already at the
highest level on the scale, there is also limited upside to the
bank's Individual Rating, which is already the highest among the
rated Philippine banks. Furthermore, upward momentum in the Long-
term IDRs would likely be dependent upon an upgrade in the
sovereign ratings (which are on a Stable Outlook at present).
Fitch currently caps BPI's FC IDR at the sovereign FC IDR of 'BB'
on account of its sizeable holdings of government securities (25%
of total assets at end-2009), meaning that the bank's 'BB' FC IDR
is lower than where banks with Individual Ratings of 'C' would
typically map under Fitch's Global Financial Institutions Rating
Criteria, dated August 16, 2010.
The bank's Support Rating and Support Rating Floor, which are
comparable with those of other large Philippine banks, are driven
by its systemic importance to the domestic economy. This stems
from BPI's status as the nation's third largest bank, with a 12%
market share of banking system assets, resulting from its solid
franchise in the country.
BPI has a good earnings record thanks to its broad revenue base,
well-managed costs and low impairment charges. Its asset quality
was quite resilient in 2008/2009 amid the downturn and improved
gradually in 2010 amid the ongoing economic recovery in the
Philippines. This generally favorable backdrop, together with an
improved reserve coverage on non-performing loans at 91% and
investment properties at 24% at end-September 2010 (end-2009: 69%
and 19%, respectively), also suggests that provisioning risks on
the bank's earnings and credit profile seem low in the near term.
That said, the external environment remains somewhat uncertain,
which may have some knock-on effects on the Philippine economy.
Fitch highlights that unexpectedly high credit losses and/or an
event risk (such as a major acquisition) together with a reduced
capital buffer, especially in a renewed downturn scenario would be
negative for the bank's ratings.
Yet, the Rating Outlook is still Stable at this stage as the
agency recognizes BPI's conservative management team and strong
loss-absorption capacity, resulting from its improved reserve
levels, reasonable earnings buffer and high capital cushion. The
bank's core Tier 1 capital adequacy ratio of 15.3% at end-
September 2010 was further fortified from 12.7% at end-2009 by its
PHP10bn rights issue (completed in August 2010) and was one of the
highest among its rated local peers. BPI has a stable funding
base due to its strong deposit franchise and has a fairly liquid
balance sheet, with a loans/deposits ratio of 55%-60%.
BPI's subordinated notes rating of 'AA+(phl)' is one notch below
the bank's 'AAA(phl)' National Long-term rating to reflect the
subordinated status of this issue and the absence of any going-
concern loss-absorption feature. This is in accordance with the
agency's criteria of rating subordinated notes of financial
institutions.
Full list of rating actions related to BPI:
-- Long-term FC IDR affirmed at 'BB' with a Stable Outlook;
-- Long-term local-currency IDR affirmed at 'BB+' with a Stable
Outlook;
-- National Long-term Rating affirmed at 'AAA(phl)' with a
Stable Outlook;
-- Individual Rating affirmed at 'C';
-- Support Rating affirmed at '3';
-- Support Rating Floor affirmed at 'BB-'; and
-- Subordinated notes rating affirmed at 'AA+(phl)'.
===========
T A I W A N
===========
CATHAY DUN: Fitch Places Certificates on Rating Watch Negative
--------------------------------------------------------------
Fitch Ratings has placed all beneficiary certificates issued by
Taiwan's Cathay Dun Nan Commercial Building Real Estate Asset
Trust on Rating Watch Negative. The REAT is entrusted with part
of the Dun Nan Commercial Building. The rating actions are listed
below:
-- TWD1,167.5m Class A Beneficiary Certificates 'AAAsf(twn)';
placed on RWN;
-- TWD285m Class B Beneficiary Certificates 'Asf(twn)'; placed
on RWN; and
-- TWD310m Class C Beneficiary Certificates 'BBsf(twn)'; placed
on RWN.
Fitch has placed all classes on RWN as two major tenants (about
18.6% of gross monthly rental income) have declared that they will
terminate their leases earlier than previously expected in March
2011. The lower occupancy rate, together with the potential
downward pressures on rental rates will have a severe impact on
the cash flow generating ability of the entrusted property, and on
the transaction's debt servicing capabilities. All rated classes
have therefore been placed on RWN to reflect the uncertainties and
the increased risk profile of the transaction.
Fitch expects to resolve the RWN status within a month.
===============
X X X X X X X X
===============
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
ADVANCE HEAL-NEW AHGN 16.93 -8.23
ASTON RESOURCES AZT 469.54 -7.49
AUSTAR UNITED AUN 502.05 -284.60
AUSTRALIAN ZI-PP AZCCA 77.74 -2.57
AUSTRALIAN ZIRC AZC 77.74 -2.57
AUTRON CORP LTD AAT 32.39 -13.42
AUTRON CORP LTD AAT 32.39 -13.42
BCD RESOURCES OP BCO 22.09 -61.19
BCD RESOURCES-PP BCOCC 22.09 -61.19
BIRON APPAREL LT BIC 19.71 -2.22
CENTRO PROPERTIE CNP 14,253.26 -825.84
CHALLENGER INF-A CIF 2,161.41 -339.11
CHEMEQ LTD CMQ 25.19 -24.25
COMPASS HOTEL GR CXH 88.33 -1.08
ELLECT HOLDINGS EHG 18.25 -15.49
HEALTH CORP LTD HEA 11.97 -2.66
HYRO LTD HYO 11.81 -5.15
IVANHOE AUST LTD IVA 49.44 -6.51
MAC COMM INFR-CD MCGCD 8,104.42 -103.34
MAVERICK DRILLIN MAD 24.66 -1.30
MISSION NEWENER MBT 32.23 -21.48
NATURAL FUEL LTD NFL 19.38 -121.51
ORION GOLD NL ORN 11.06 -4.86
RIVERCITY MOTORW RCY 386.88 -809.14
SCIGEN LTD-CUFS SIE 69.94 -29.79
SHELL VILLAGES A SVC 13.47 -1.66
TAKORADI LTD TKG 13.99 -0.41
THOMAS BRYSON TBI 44.32 -54.68
VERTICON GROUP VGP 10.08 -29.12
CHINA
BAOCHENG INVESTM 600892 23.14 -3.54
CHANGAN INFO-A 600706 20.86 -8.49
CHENGDE DALU -B 200160 27.04 -6.64
CHENGDU UNION-A 693 39.10 -17.39
CHINA KEJIAN-A 35 88.96 -189.48
DATONG CEMENT-A 673 20.41 -3.25
DONGGUAN FANGD-A 600656 27.97 -57.39
DONGXIN ELECTR-A 600691 13.60 -21.94
FANGDA JINHUA-A 818 389.84 -46.28
GAOXIN ZHANGTO-A 2075 153.10 -6.31
GUANGDONG ORIE-A 600988 12.25 -5.34
GUANGMING GRP -A 587 49.10 -40.40
GUANGXIA YINCH-A 557 30.39 -32.88
HEBEI BAOSHUO -A 600155 127.82 -394.70
HEBEI JINNIU C-A 600722 238.23 -243.80
HUASU HOLDINGS-A 509 86.70 -4.20
HUNAN ANPLAS CO 156 38.70 -65.44
JIANGSU CHINES-A 805 12.70 -12.83
JINCHENG PAPER-A 820 258.98 -37.74
MUDAN AUTOMOBI-H 8188 36.26 -0.61
QINGDAO YELLOW 600579 214.64 -1.88
QINGHAI SUNSHI-A 600381 110.68 -17.35
SHAANXI QINLIN-A 600217 234.36 -36.75
SHANG BROAD-A 600608 69.46 -17.67
SHANG HONGSHENG 600817 15.69 -443.71
SHANGHAI WORLDBE 600757 143.11 -291.80
SHENZ CHINA BI-A 17 24.86 -272.59
SHENZ CHINA BI-B 200017 24.86 -272.59
SHENZHEN DAWNC-A 863 24.38 -155.20
SHENZHEN KONDA-A 48 117.23 -0.23
SHENZHEN ZERO-A 7 44.00 -7.96
SHIJIAZHUANG D-A 958 224.19 -70.54
SICHUAN DIRECT-A 757 108.57 -146.61
SICHUAN GOLDEN 600678 232.67 -48.05
TAIYUAN TIANLO-A 600234 51.64 -28.38
TIANJIN MARINE 600751 78.09 -63.86
TIANJIN MARINE-B 900938 78.09 -63.86
TIBET SUMMIT I-A 600338 91.86 -3.73
TOPSUN SCIENCE-A 600771 162.47 -163.30
WINOWNER GROUP C 600681 11.30 -70.39
WUHAN BOILER-B 200770 275.89 -142.53
WUHAN GUOYAO-A 600421 11.01 -24.78
XIAMEN OVERSEA-A 600870 319.68 -138.16
XINHUA FINANCE 9399 35.80 -1.17
YANBIAN SHIXIA-A 600462 197.99 -16.19
YIBIN PAPER IN-A 600793 110.12 -0.47
YUEYANG HENGLI-A 622 36.49 -16.37
YUNNAN MALONG-A 600792 145.58 -51.15
ZHANGJIAJIE TO-A 430 37.34 -1.16
HONG KONG
ASIA TELEMEDIA L 376 16.62 -5.37
BUILDMORE INTL 108 13.48 -69.17
CHINA 3D DIGITAL 8078 42.27 -0.34
CHINA COMMUNICAT 8206 36.62 -6.93
CHINA HEALTHCARE 673 37.98 -2.81
CMMB VISION HOLD 471 41.31 -5.11
COSMO INTL 1000 120 83.67 -25.33
CROSBY CAPITAL 8088 13.84 -14.46
EGANAGOLDPFEIL 48 557.89 -132.86
FULBOND HLDGS 1041 54.53 -24.07
HAO WEN HOLDINGS 8019 22.57 -0.46
IMAGI INTERNATIO 585 11.29 -21.23
JIAN EPAYMENT 8165 14.66 -1.12
MELCOLOT LTD 8198 63.10 -34.44
MITSUMARU EAST K 2358 18.15 -11.83
NEW CITY CHINA 456 112.20 -14.59
NGAI LIK INDL 332 21.16 -3.64
PAC PLYWOOD 767 72.60 -12.31
PALADIN LTD 495 146.73 -8.91
PCCW LTD 8 5,350.25 -416.24
PROVIEW INTL HLD 334 314.87 -294.85
SINO RESOURCES G 223 25.07 -39.10
SMART UNION GP 2700 13.70 -43.29
TACK HSIN HLDG 611 27.01 -62.70
TLT LOTTOTAINMEN 8022 25.21 -8.78
TONIC IND HLDGS 978 56.17 -54.52
INDONESIA
ASIA PACIFIC POLY 475.69 -841.22
ERATEX DJAJA ERTX 11.30 -18.23
HANSON INTERNATI MYRX 10.84 -14.73
HANSON INT-PREF MYRXP 10.84 -14.73
JAKARTA KYOEI ST JKSW 31.25 -42.74
MITRA INTERNATIO MIRA 970.13 -256.04
MITRA RAJASA-RTS MIRA-R2 970.13 -256.04
MULIA INDUSTRIND MLIA 347.35 -351.40
PANASIA FILAMENT PAFI 45.10 -8.20
PANCA WIRATAMA PWSI 30.79 -38.79
PRIMARINDO ASIA BIMA 12.22 -21.89
STEADY SAFE TBK SAFE 11.85 -5.88
SURABAYA AGUNG SAIP 265.80 -83.61
UNITEX TBK UNTX 16.09 -16.28
INDIA
ALCOBEX METALS AML 16.59 -21.47
AMIT SPINNING AMSP 22.70 -1.90
ARTSON ENGR ART 15.63 -1.61
ASHIMA LTD ASHM 63.65 -55.81
ATV PROJECTS ATV 60.46 -55.04
BALAJI DISTILLER BLD 66.32 -25.40
BELLARY STEELS BSAL 451.68 -108.50
BHAGHEERATHA ENG BGEL 22.65 -28.20
CAMBRIDGE SOLUTI CAMB 156.75 -46.79
CFL CAPITAL FIN CEATF 15.35 -46.89
COMPUTERSKILL CPS 14.90 -7.56
CORE HEALTHCARE CPAR 185.36 -241.91
DCM FINANCIAL SE DCMFS 16.06 -9.47
DIGJAM LTD DGJM 98.77 -14.62
DUNCANS INDUS DAI 133.65 -205.38
FIBERWEB INDIA FWB 13.25 -8.17
GANESH BENZOPLST GBP 43.99 -24.57
GEM SPINNERS LTD GEMS 16.44 -1.53
GLOBAL BOARDS GLB 14.98 -7.51
GSL INDIA LTD GSL 37.04 -42.34
GSL NOVA PETROCH GSLN 44.39 -0.93
GUJARAT SIDHEE GSCL 59.44 -0.66
HARYANA STEEL HYSA 10.83 -5.91
HENKEL INDIA LTD HNKL 102.05 -10.24
HIMACHAL FUTURIS HMFC 406.63 -210.98
HINDUSTAN PHOTO HPHT 68.94 -1,147.18
HINDUSTAN SYNTEX HSYN 14.15 -3.66
HMT LTD HMT 142.67 -386.80
ICDS ICDS 13.30 -6.17
INDIA FOILS LTD IF 54.77 -2.70
INTEGRAT FINANCE IFC 49.83 -51.32
JCT ELECTRONICS JCTE 122.54 -50.00
JD ORGOCHEM LTD JDO 10.46 -1.60
JENSON & NIC LTD JN 17.91 -84.78
JIK INDUS LTD KFS 20.63 -5.62
JK SYNTHETICS JKS 13.51 -3.03
JOG ENGINEERING VMJ 50.08 -10.08
KALYANPUR CEMENT KCEM 37.45 -45.90
KERALA AYURVEDA KRAP 13.99 -1.18
KINGFISHER AIR KAIR 1,781.30 -861.06
KITPLY INDS LTD KIT 48.42 -24.51
LLOYDS FINANCE LYDF 23.77 -10.87
LLOYDS STEEL IND LYDS 415.66 -63.93
LML LTD LML 65.26 -56.77
MILLENNIUM BEER MLB 52.23 -5.22
MILTON PLASTICS MILT 18.31 -40.44
MTZ POLYFILMS LT TBE 31.94 -2.57
NICCO CORP LTD NICC 82.41 -2.85
NICCO UCO ALLIAN NICU 32.23 -71.91
NK INDUS LTD NKI 49.04 -4.95
NRC LTD NTRY 92.88 -36.76
ORIENT PRESS LTD OP 16.70 -0.09
PANCHMAHAL STEEL PMS 51.02 -0.33
PARASRAMPUR SYN PPS 111.97 -317.11
PAREKH PLATINUM PKPL 61.08 -88.85
PEACOCK INDS LTD PCOK 11.40 -14.40
PIRAMAL LIFE SC PLSL 45.82 -32.69
QUADRANT TELEVEN QDTV 173.52 -101.57
RAJ AGRO MILLS RAM 10.21 -0.61
RAMA PHOSPHATES RMPH 34.07 -1.19
RATHI ISPAT LTD RTIS 44.56 -3.93
RELIGARE TECHNOV RTCL 44.13 -1.46
REMI METALS GUJA RMM 102.64 -5.29
RENOWNED AUTO PR RAP 14.12 -1.25
ROLLATAINERS LTD RLT 22.97 -22.24
ROYAL CUSHION RCVP 20.62 -75.53
SCOOTERS INDIA SCTR 18.63 -6.88
SEN PET INDIA LT SPEN 12.99 -25.24
SHAH ALLOYS LTD SA 212.81 -9.74
SHALIMAR WIRES SWRI 24.87 -51.77
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE GANESH FOR SGFO 44.50 -2.89
SHREE RAMA MULTI SRMT 62.72 -45.92
SIDDHARTHA TUBES SDT 70.93 -12.09
SIL BUSINESS ENT SILB 12.46 -19.96
SOUTHERN PETROCH SPET 1,584.27 -4.80
SQL STAR INTL SQL 11.69 -1.14
STI INDIA LTD STIB 28.05 -8.04
TAMILNADU TELE TNT 12.82 -5.15
TATA TELESERVICE TTLS 1,069.83 -154.99
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 24.55 -8.57
TUTICORIN ALKALI TACF 14.15 -11.20
UNIFLEX CABLES UFC 45.05 -0.90
UNIFLEX CABLES UFCZ 45.05 -0.90
UNIMERS INDIA LT HDU 19.23 -3.23
UNITED BREWERIES UB 2,652.00 -242.53
UNIWORTH LTD WW 145.71 -114.87
USHA INDIA LTD USHA 12.06 -54.51
VENTURA TEXTILES VRTL 14.25 -0.33
VENUS SUGAR LTD VS 11.06 -1.08
WINDSOR MACHINES WML 14.50 -28.14
WIRE AND WIRELES WNW 115.34 -34.49
JAPAN
CREDIT ORG S&M 8489 97.07 -9.98
DPG HOLDINGS INC 3781 11.77 -3.99
FIDEC 8423 182.86 -11.14
FUJI TECHNICA 6476 175.22 -18.71
HARAKOSAN CO 8894 190.27 -19.80
JIPANGU HOLDINGS 2684 95.44 -8.38
KNT 9726 1,058.18 -13.37
L CREATE CO LTD 3247 42.34 -9.15
LAND 8918 293.88 -53.39
LCA HOLDINGS COR 4798 51.30 -2.57
PROPERST CO LTD 3236 305.90 -330.20
RAYTEX CORP 6672 41.66 -28.52
SHIN-NIHON TATEM 8893 124.85 -39.12
SHINWA OX CORP 2654 43.91 -30.19
SHIOMI HOLDINGS 2414 190.97 -22.81
TERRANETZ CO LTD 2140 11.63 -4.29
KOREA
AJU MEDIA SOL-PF 44775 13.82 -1.25
DAISHIN INFO 20180 740.50 -158.45
KEYSTONE GLOBAL 12170 10.61 -0.74
KUKDONG CORP 5320 51.19 -1.39
KUMHO INDUS-PFD 2995 5,837.32 -967.28
KUMHO INDUSTRIAL 2990 5,837.32 -967.28
ORICOM INC 10470 82.65 -40.04
SAMT CO LTD 31330 200.83 -152.09
SEOUL MUTL SAVIN 16560 874.79 -34.13
TAESAN LCD CO 36210 296.83 -91.03
TONG YANG MAGIC 23020 355.15 -25.77
YOUILENSYS CORP 38720 166.70 -12.34
MALAYSIA
AXIS INCORPORATI AXIS 39.22 -86.70
GULA PERAK BHD GUP 91.03 -38.57
HO HUP CONSTR CO HO 68.68 -7.10
LCL CORP BHD LCL 45.27 -111.27
LIMAHSOON BHD LIMA 26.52 -1.56
LUSTER INDUSTRIE LSTI 22.97 -1.72
NGIU KEE CO-BHD NKC 22.98 -0.16
OILCORP BHD OILC 91.94 -63.88
TRACOMA HOLDINGS TRAH 72.64 -6.19
NEW ZEALAND
DORCHESTER PAC DPC 77.28 -2.01
PHILIPPINES
APEX MINING 'B' APXB 45.84 -20.95
APEX MINING-A APX 45.84 -20.95
BENGUET CORP 'B' BCB 80.66 -37.36
BENGUET CORP-A BC 80.66 -37.36
CYBER BAY CORP CYBR 13.30 -83.83
EAST ASIA POWER PWR 42.01 -159.00
FIL ESTATE CORP FC 38.38 -13.37
FILSYN CORP A FYN 22.72 -10.89
FILSYN CORP. B FYNB 22.72 -10.89
GOTESCO LAND-A GO 18.68 -10.86
GOTESCO LAND-B GOB 18.68 -10.86
MRC ALLIED INC MRC 13.26 -5.43
PICOP RESOURCES PCP 105.66 -23.33
STENIEL MFG STN 22.11 -13.42
UNIVERSAL RIGHTF UP 45.12 -13.48
UNIWIDE HOLDINGS UW 52.80 -56.18
VICTORIAS MILL VMC 164.26 -18.20
SINGAPORE
ADV SYSTEMS AUTO ASA 14.49 -12.12
ADVANCE SCT LTD ASCT 16.05 -43.84
HL GLOBAL ENTERP HLGE 97.30 -11.43
JAPAN LAND LTD JAL 191.62 -10.91
LINDETEVES-JACOB LJ 135.79 -90.16
NEW LAKESIDE NLH 19.34 -5.25
SUNMOON FOOD COM SMOON 14.19 -14.22
TT INTERNATIONAL TTI 272.51 -57.42
THAILAND
ABICO HLDGS-F ABICO/F 15.28 -4.40
ABICO HOLDINGS ABICO 15.28 -4.40
ABICO HOLD-NVDR ABICO-R 15.28 -4.40
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
BANGKOK RUBBER BRC 95.77 -72.05
BANGKOK RUBBER-F BRC/F 95.77 -72.05
BANGKOK RUB-NVDR BRC-R 95.77 -72.05
CIRCUIT ELEC PCL CIRKIT 16.79 -96.30
CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30
CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30
DATAMAT PCL DTM 12.69 -6.13
DATAMAT PCL-NVDR DTM-R 12.69 -6.13
DATAMAT PLC-F DTM/F 12.69 -6.13
GRANDE ASSE-NVDR GRAND-R 217.95 -9.04
GRANDE ASSET H-F GRAND/F 217.95 -9.04
GRANDE ASSET HOT GRAND 217.95 -9.04
ITV PCL ITV 34.83 -100.25
ITV PCL-FOREIGN ITV/F 34.83 -100.25
ITV PCL-NVDR ITV-R 34.83 -100.25
K-TECH CONSTRUCT KTECH/F 39.74 -33.07
K-TECH CONSTRUCT KTECH 39.74 -33.07
K-TECH CONTRU-R KTECH-R 39.74 -33.07
KUANG PEI SAN POMPUI 17.70 -12.74
KUANG PEI SAN-F POMPUI/F 17.70 -12.74
KUANG PEI-NVDR POMPUI-R 17.70 -12.74
PATKOL PCL PATKL 52.89 -30.64
PATKOL PCL-FORGN PATKL/F 52.89 -30.64
PATKOL PCL-NVDR PATKL-R 52.89 -30.64
PICNIC CORP-NVDR PICNI-R 110.91 -149.25
PICNIC CORPORATI PICNI 110.91 -149.25
PICNIC CORPORATI PICNI/F 110.91 -149.25
PONGSAAP PCL PSAAP/F 23.00 -9.14
PONGSAAP PCL PSAAP 23.00 -9.14
PONGSAAP PCL-NVD PSAAP-R 23.00 -9.14
SAHAMITR PRESS-F SMPC/F 21.99 -4.01
SAHAMITR PRESSUR SMPC 21.99 -4.01
SAHAMITR PR-NVDR SMPC-R 21.99 -4.01
SUNWOOD INDS PCL SUN 19.86 -13.03
SUNWOOD INDS-F SUN/F 19.86 -13.03
SUNWOOD INDS-NVD SUN-R 19.86 -13.03
THAI-DENMARK PCL DMARK 15.72 -10.10
THAI-DENMARK-F DMARK/F 15.72 -10.10
THAI-DENMARK-NVD DMARK-R 15.72 -10.10
THAI-GERMAN PR-F TGPRO/F 53.47 -4.49
THAI-GERMAN PRO TGPRO 53.47 -4.49
THAI-GERMAN-NVDR TGPRO-R 53.47 -4.49
TRANG SEAFOOD TRS 13.34 -4.01
TRANG SEAFOOD-F TRS/F 13.34 -4.01
TRANG SFD-NVDR TRS-R 13.34 -4.01
UNIVERSAL S-NVDR USC-R 114.26 -20.53
UNIVERSAL STARCH USC 114.26 -20.53
UNIVERSAL STAR-F USC/F 114.26 -20.53
TAIWAN
CHIEN TAI CEMENT 1107 202.42 -33.40
HELIX TECH-EC 2479T 23.39 -24.12
HELIX TECH-EC IS 2479U 23.39 -24.12
HELIX TECHNOL-EC 2479S 23.39 -24.12
PRODISC TECH 2396 253.76 -36.04
TAIWAN KOL-E CRT 1606U 507.21 -147.14
TAIWAN KOLIN-EN 1606V 507.21 -147.14
TAIWAN KOLIN-ENT 1606W 507.21 -147.14
VERTEX PREC-ENTL 5318T 42.86 -0.71
VERTEX PRECISION 5318 42.86 -0.71
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine T.
Fernandez, Joy A. Agravante, Frauline S. Abangan, and Peter A.
Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***