/raid1/www/Hosts/bankrupt/TCRAP_Public/110124.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, January 24, 2011, Vol. 14, No. 16
Headlines
A U S T R A L I A
ARISTOCRAT LEISURE: S&P Affirms 'BB+' Corporate Rating
RAINE SQUARE: Receivers Seize Rich List Saraceni's Assets
C H I N A
WEST CHINA: Fitch Rates $400-Mil. Senior Unsec. Notes at 'BB'
H O N G K O N G
139 MOBILE: Commences Wind-Up Proceedings
AUDIO SONIC: Corkhill and Bruce Appointed as Liquidators
CHIPNUTS TECHNOLOGY: Placed Under Voluntary Wind-Up Proceedings
CHUNG KIU: Ying and Chan Step Down as Liquidators
COOLABAH 1: Creditors' Proofs of Debt Due February 22
EVERSTEP LIMITED: Creditors' Proofs of Debt Due February 14
FAR EAST CHARTERING: Commences Wind-Up Proceedings
FRIEND LONG: Placed Under Voluntary Wind-Up Proceedings
GARDEN PACIFIC: Lui and Yuen Step Down as Liquidators
HIP WAH: Placed Under Voluntary Wind-Up Proceedings
I N D I A
AIR INDIA: Board Approves Termination of AI Express COO
AIR INDIA: Mandates ICICI Bank For Loan Refinancing
ARUNACHALAM SUGAR: Court Sets Asset Auction to March 7
BNT CONNECTIONS: Fitch Rates INR65 Million Capital Limits at 'B-'
BNT INNOVATIONS: Fitch Rates INR70 Million Capital Limits at 'B-'
DIWAN ENTERPRISES: CRISIL Puts 'B+' Rating on INR40MM Cash Credit
G V G INDUSTRIES: CRISIL Reaffirms 'BB-' Rating on Cash Credit
HARRY MILK: CRISIL Rates INR75 Million Cash Credit Limit at 'B+'
MAHESH AGRO: Fitch Migrates Rating to "Non-Monitored" Category
PANSURIYA IMPEX: CRISIL Reaffirms 'P4+' Rating on INR172MM Credit
RAMA MUSTARD: CRISIL Reaffirms 'D' Rating on INR26MM Term Loan
RAGHUVIR FERRO: CRISIL Reaffirms 'BB' Rating on INR50M Cash Credit
STATIONERY POINT: CRISIL Cuts Rating on INR375MM LT Loan to 'D'
SUJALA PIPES: CRISIL Upgrades Rating on INR7.9MM LT Loan to 'B+'
VIKRMA IMPEX: CRISIL Puts 'P4+' Rating on INR10MM Letter of Credit
WANBURY LTD: Fitch Lowers Rating on INR$2,852MM Loans to 'D(ind)'
J A P A N
GODO KAISHA: Moody's Reviews Rating on Notes for Likely Downgrade
JAPAN AIRLINES: Maximus Air Buys Three JAL Planes
JLOC39 TRUST: Moody's Reviews Certificates for Possible Downgrade
JLOC XXXIV: S&P Lowers Ratings on Class C Trust Certs. to 'BB'
KAISA GROUP: Moody's Says Bond Issuance Won't Affect Low-B Ratings
L-JAC3 TRUST: Fitch Downgrades Ratings on Five Classes of Notes
PEGASUS FUNDING: Moody's Lowers Rating on Two Class Loans to B3
N E W Z E A L A N D
FINANCE AND LEASING: Goes Into Receivership, Owes NZ$17 Million
WALTER PEAK: Creditors Unlikely to Recoup Money from Firm
S I N G A P O R E
ACE FAMILY: Creditors Get 6.42149% Recovery on Claims
BABCOCK & BROWN: Creditors' Proofs of Debt Due February 22
DG2L TECHNOLOGIES: Court to Hear Wind-Up Petition on February 11
HAIKE OIL: Creditors' Proofs of Debt Due February 22
MARINE PROPERTIES: Court to Hear Wind-Up Petition on February 11
MEMTECH TECHNOLOGIES: Creditors' Proofs of Debt Due February 20
OAS ENGINEERING: Court to Hear Wind-Up Petition on February 11
PROTRUST ASIA: Creditors' Proofs of Debt Due February 21
STICKKEY SECURITY: Court Enters Wind-Up Order
SURROUNDING ENTERPRISE: Court Enters Wind-Up Order
- - - - -
=================
A U S T R A L I A
=================
ARISTOCRAT LEISURE: S&P Affirms 'BB+' Corporate Rating
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' corporate
credit rating on Australian-based maker of gaming machines
Aristocrat Leisure Ltd. At the same time, removed the rating from
CreditWatch, where it was placed with negative implications on
Nov. 26, 2010. The outlook is negative.
"The rating actions reflect the deterioration in the company's
2010 earnings to levels beyond our expectations," Standard &
Poor's credit analyst May Zhong said. "However, tolerance for
temporarily weaker credit metrics is supported by our expectation
that Aristocrat will proactively pursue measures to improve its
balance-sheet position in a timely manner. The cash-generative
nature of its business, assuming no further deterioration of the
trading conditions in its key gaming markets, also underpins our
expectations."
The rating could be lowered if:
-- Aristocrat's prospective credit metrics for 2011 do not show
an improving trajectory; in particular, S&P anticipates
adjusted debt-to-EBITDA to return to the low level of 2x or
better in fiscal 2011;
-- The company fails to execute its operating plan or that it
does not achieve the expected improvements in operating
results; or
-- Trading conditions deteriorate in its key markets.
S&P could revise the outlook to stable if Aristocrat's fully
adjusted debt-to-EBITDA trends strongly toward the mid-1x level as
conditions improve in its key markets.
RAINE SQUARE: Receivers Seize Rich List Saraceni's Assets
---------------------------------------------------------
James Thomson at SmartCompany reports that beleaguered property
developer and rich list member Luke Saraceni has had more of his
assets seized by receivers, just a week after the collapse of his
AU$500 million Perth office tower project, Raine Square.
According to SmartCompany, receivers from insolvency firm Ferrier
Hodgson took control of three properties owned by Saraceni's
companies:
-- an AU$8 million site in Perth where his winery was located;
-- a AU$5 million block of retail units in the Perth suburb of
Spearwood; and
-- a AU$20 million shopping centre in the Victorian regional
town of Warrnambool.
All of the properties have been used as security against the Raine
Horne project, which Saraceni was developing with fellow property
developer Hossean Pourzard, according to SmartCompany.
SmartCompany relates that major lender Bankwest -? which has also
signed on as the 20-storey tower's major tenant -? called in
receivers to Raine Square after Mr. Saraceni and Mr. Pourzard's
joint venture company, Westgem Investments, missed a AU$50 million
payment to their lenders in late 2010.
SmartCompany states that the properties, placed in Ferrier
Hodgson's hands on Thursday, will now be sold to help repay the
debt on the Raine Square project.
Located in Perth, Australia, Raine Square office/retail tower is a
AU$500 million project.
=========
C H I N A
=========
WEST CHINA: Fitch Rates $400-Mil. Senior Unsec. Notes at 'BB'
-------------------------------------------------------------
Fitch Ratings assigned a final 'BB' rating to the US$400 million
senior unsecured notes due 2016 by West China Cement Limited (WCC,
'BB'/Stable).
This follows the receipt of documents conforming to information
already received. The final ratings are in line with the expected
ratings assigned on January 12, 2011.
================
H O N G K O N G
================
139 MOBILE: Commences Wind-Up Proceedings
-----------------------------------------
Members of 139 Mobile Internet (Hong Kong) Limited, on January 13,
2011, passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Ho Man Kit
Kong Sau Wai
Unit 511, 5th Floor
Tower 1, Silvercord
No. 30 Canton Road
Tsimshatsui, Kowloon
Hong Kong
AUDIO SONIC: Corkhill and Bruce Appointed as Liquidators
--------------------------------------------------------
Thomas Andrew Corkhill and Iain Ferguson Bruce on January 12,
2011, were appointed as liquidators of Audio Sonic Far East
Limited.
The liquidators may be reached at:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Floor, Gloucester Tower
The Landmark
15 Queen's Road
Central, Hong Kong
CHIPNUTS TECHNOLOGY: Placed Under Voluntary Wind-Up Proceedings
---------------------------------------------------------------
At an extraordinary general meeting held on January 14, 2011,
creditors of Chipnuts Technology (HK) Limited resolved to
voluntarily wind up the company's operations.
The company's liquidators are:
Mr. James Wardell
Mr. Jackson Ip
Rooms 1601-1602, 16/F
One Hysan Avenue
Causeway Bay, Hong Kong
CHUNG KIU: Ying and Chan Step Down as Liquidators
-------------------------------------------------
Ying Hing Chiu and Chan Mi Har stepped down as liquidators of
Chung Kiu Telecommunications (China) Limited on January 11, 2011.
COOLABAH 1: Creditors' Proofs of Debt Due February 22
-----------------------------------------------------
Creditors of Coolabah 1 Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Feb. 22,
2011, to be included in the company's dividend distribution.
The company's liquidators are:
Isabelle Angeline Young
John Chi Wai Wong
21/F., Edinburgh Tower
The Landmark
15 Queen's Road
Central, Hong Kong
EVERSTEP LIMITED: Creditors' Proofs of Debt Due February 14
----------------------------------------------------------
Creditors of Everstep Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Feb. 14,
2011, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on January 12, 2011.
The company's liquidator is:
Fong Man Lung
8/F., A T Tower
180 Electric Road
North Point, Hong Kong
FAR EAST CHARTERING: Commences Wind-Up Proceedings
--------------------------------------------------
Shareholder of Far East Chartering Limited, on January 4, 2011,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Fok Hei Yu
Roderick John Sutton
14/F., The Hong Kong Club Building
3A Chater Road
Central, Hong Kong
FRIEND LONG: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------
At an extraordinary general meeting held on January 21, 2011,
creditors of Friend Long Limited resolved to voluntarily wind up
the company's operations.
The company's liquidator is:
Cheng Kai Tai Allen
19/F., Beverly House
Nos. 93-107 Lockhart Road
Wanchai, Hong Kong
GARDEN PACIFIC: Lui and Yuen Step Down as Liquidators
-----------------------------------------------------
Kennic Lai Hang Lui and Yuen Tsz Chun Frank stepped down as
liquidators of Garden Pacific Company Limited on January 10, 2011.
HIP WAH: Placed Under Voluntary Wind-Up Proceedings
---------------------------------------------------
At an extraordinary general meeting held on January 11, 2011,
creditors of Hip Wah Plastic Box Manufactory Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Wong Kong
Block H, 5th Floor
Phase 3, Kwun Tong Industrial Centre
448-458 Kwun Tong Road
Kowloon
=========
I N D I A
=========
AIR INDIA: Board Approves Termination of AI Express COO
-------------------------------------------------------
The Times of India reports that the Air India board on Wednesday
approved the termination of Air India Express Chief Operating
Officer Capt Pawan Arora. Mr. Arora, however, continues to hold
the post and the board has referred the matter to the airline's
legal department for its opinion, The Times of India says.
"The board confirmed and approved the last meeting's minutes which
said that Mr. Arora should be dispensed with immediate effect," an
airline source told The Times of India. But the matter is still
pending as the board has sought legal opinion on how to execute
the decision, the source added.
According to the news agency, the decision to sack Mr. Arora was
taken in the November board meeting and the former civil aviation
minister had also made an announcement to the effect in the
Parliament. However, The Times of India notes, Mr. Arora
continues to attend office, hold meetings and take decisions as
the airline works out the legal ramifications of the issue.
The Times of India recounts that Mr. Arora's appointment had
turned controversial in September following reports that he did
not fulfill the minimum requirements. According to the report,
the minutes of the last board meeting said that, "some facts had
come to light which led to the feeling that there had been some
concealment of information and it might not be possible to carry
the specific appointment forward". "This was particularly so in
respect of Captain Pawan Arora, whose services were hired as COO
of Air India Charters Limited. Taking relevant facts into
consideration, it was felt that his services should be dispensed
with immediate effect," the minutes said.
About Air India
Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world. Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation. The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes. The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand. The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.
* * *
The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown. The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09. Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.
The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15. The plan includes raising the company's fleet
strength to as many as 275 planes from 148 in five years. Air
India Chairman and Managing Director Arvind Jadhav said the new
100-page turnaround plan for 2010-14, which ruled out any job cuts
or wage reductions, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.
AIR INDIA: Mandates ICICI Bank For Loan Refinancing
---------------------------------------------------
The Hindu BusinessLine reports that Air India has mandated ICICI
Bank for the re-financing of loans to purchase 21 Airbus 320
aircraft valued at INR5,500 crore. The decision was taken at the
Board meeting of the national carrier held in Mumbai on Wednesday.
According to the BusinessLine, the Board at a meeting on Wednesday
also approved the delivery financing of three Boeing 777- 300 ER
aircraft and one GE-90 spare engine with US Exim Bank support
worth $475 million. The mandate has been awarded to Citibank to
finance 85 per cent of these funds, and Standard Chartered Bank
for 15 per cent, according to a statement obtained by the
BusinessLine.
"The Board has also approved disposal of four Airbus 310 passenger
aircraft along with the simulator," the statement added. Other
approvals include dry lease of 10 Airbus 320 aircraft, which will
replace the present aging fleet of Airbus 320 aircraft and dry
lease of two Airbus 330 aircraft.
The BusinessLine relates that the board has also ratified the
decision to continue the dry lease of four Boeing 737-800 aircraft
for Air India Express. Air India Express will now have a fleet of
21 aircraft, including 17 own aircraft, the BusinessLine adds.
About Air India
Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world. Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation. The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes. The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand. The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.
* * *
The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown. The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09. Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.
The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15. The plan includes raising the company's fleet
strength to as many as 275 planes from 148 in five years. Air
India Chairman and Managing Director Arvind Jadhav said the new
100-page turnaround plan for 2010-14, which ruled out any job cuts
or wage reductions, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.
ARUNACHALAM SUGAR: Court Sets Asset Auction to March 7
------------------------------------------------------
Law et al. news reports that the High Court of Madras has given
the green signal for the auction of assets of M/s. Arunachalam
Sugar Mills Ltd. at Thiruvannamalai district. Law et al. news
says the High Court passed this order allowing an application
filed by Indian Renewable Energy Development Agency Ltd. (IREDA),
a secured creditor of the company in liquidation, seeking the
Official Liquidator to jointly advertise for the sale of assets of
the company.
According to Law et al. news, IREDA had granted financial
assistance of INR49,35,28,000/- to the company for setting up a
14 MW Bagasse based Co-generation Captive Power Plant, for
enhancement of its capacity to 19 MW and for the purchase of
energy efficient equipment.
Law et al. news notes that IREDA had also granted financial
assistance to New Horizon Sugar Mills Ltd., a group company, to
the extent of INR15,54,10,000/- under separate loan agreements for
the purchase of energy efficient equipment. Law et al. news
relates that New Horizon Sugar Mills Ltd in turn, gave these
equipments on lease to the company in liquidation. Certain
equipment was also leased from Sundaram Finance Ltd, Law et al.
news adds.
However, Law et al. news says that within a few months after
commencement of the production when the company started going into
loss, IREDA filed three applications before the Debts Recovery
Tribunal, New Delhi claiming a total amount of more than INR72
crores.
In addition, Law et al. news notes, one of the creditors of the
company in liquidation filed a petition at the Madras High Court
for winding up of the company. Allowing the application, a single
judge then appointed the official liquidator as the provisional
liquidator to take charge of all properties.
Law et al. news reports that Justice V. Ramsubramanian in his
order noted that that the directors of the company not only
promoted Arunachalam Sugar Mills Ltd., and New Horizon Sugar Mills
Ltd but were also promoters of two non-banking finance companies
by the name Pondicherry Nidhi Ltd and PNL Nidhi Ltd. These
companies committed default in payment of deposits on maturity and
are also facing prosecution in Pondicherry as well as in Tamil
Nadu, Law et al. news notes.
Law et al. news relates that in his order the judge stated,
"Therefore to my mind, the objections of the Promoters-Directors
of the company to the proposed sale is only with view to keep the
secured creditors, unsecured creditors and the depositors as well
as long arm of law at bay. Therefore, all the objections raised
by the respondents, not only lack legal tenability, but also lack
bona fides," the Judge added.
Allowing the application, Law et al. news says, the Court directed
the Official Liquidator to publish tenders for the purchase of
assets, both movable and immovable, belonging to the company in
liquidation and financed by the applicant as well as Sundaram
Finance.
Justice V. Ramsubramanian has fixed the date for auction as
March 7. The upset price has been fixed for INR86.44 crores, Law
et al. news discloses.
Advocate Jose John from M/s King & Partridge appeared for IREDA.
Arunachalam Sugar Mills Ltd. operates as a sugar mill and is based
in Thiruvannamalai, India.
BNT CONNECTIONS: Fitch Rates INR65 Million Capital Limits at 'B-'
-----------------------------------------------------------------
Fitch Ratings assigned India's B.N.T. Connections Impex Ltd. a
National Long-term rating of 'B-(ind)'. The Outlook is Stable.
The agency has also assigned ratings to BCIL's bank facilities, as
follows:
* INR65 million fund-based working capital limits:
'B-(ind)'/'F4(ind)'; and
* INR5 million non-fund based working capital limits: 'F4(ind)'.
The ratings reflect BCIL's small scale of operations in a highly
fragmented domestic readymade garments industry, vulnerability to
volatility in prices of raw materials, limited bargaining power to
pass on cost increases to finished goods buyers, and the
prevailing economic slowdown in Europe. The ratings are also
constrained by the company's EBITDA and net income losses, the
decline in its revenues on a yoy basis to INR287m in FY10, as well
as by the order driven nature and highly working capital intensive
nature of its business; hence, the company could face liquidity
issues. Key concerns are BCIL's intense competition with Chinese
garment makers and exposure to forex volatility.
The ratings are supported by over two-decade long experience of
BCIL's experienced management in the textile industry. There are
no term loans and no major capex is anticipated in the near-term.
Moreover, the estimated rental income of INR32m every year from
its real estate property in Chennai -- leased to a multinational
company -- is likely to provide comfort when there are operational
deficits.
Any delay/default in repayment of debt obligations by BCIL would
be negative for its ratings. On the other hand, sustained
positive operating EBITDA margins and operating EBITDA/interest of
beyond 1.25x would be positive for the ratings.
Incorporated in 1986, BCIL has a manufacturing capacity of 1.2
million garments per year, and exports readymade woven garments.
In FY10, it reported revenues of INR287.2m, negative EBITDA of
INR4.8 million and a net loss of INR15.2m.
BNT INNOVATIONS: Fitch Rates INR70 Million Capital Limits at 'B-'
-----------------------------------------------------------------
Fitch Ratings assigned India's B.N.T. Innovations Private Limited
a National Long-term rating of 'B-(ind)'. The Outlook is Stable.
The agency has also assigned ratings to BIPL's bank facilities, as
follows:
* INR70 million fund-based working capital limits:
'B-(ind)'/'F4(ind)'; and
* INR60 million non-fund based working capital limits:
'F4(ind)'.
The ratings reflect BIPL's small scale of operations in a highly
fragmented domestic readymade garments industry, vulnerability to
volatility in prices of raw materials, limited bargaining power to
pass on cost increases to finished goods buyers, and the
prevailing economic slowdown in Europe and UK. The ratings are
also constrained by BIPL's low profitability at both operating
EBITDA and net income levels, the decline in its revenues on a yoy
basis to INR251.2m in FY10 (FY06: INR320.2m), as well as by the
order driven and highly working capital intensive nature of its
business. Key concerns are the company's intense competition with
Chinese garment makers and exposure to forex volatility.
The ratings are supported by the two-decade long experience of
BIPL's experienced management. Also, there are no term loans and
no major capex is anticipated in the near-term.
Any delay/default in the repayment of debt obligations by BIPL
would be negative for its ratings. On the other hand, sustained
positive operating EBITDA margins and operating EBITDA/interest of
beyond 1.25x would be positive for the ratings.
Incorporated in 1989, BIPL has a manufacturing capacity of 1.5
million garments per year, and exports readymade knitted garments.
In FY10, it reported revenues of INR251.2 million, EBITDA of
INR12.2 million and net income of INR5.5 million.
DIWAN ENTERPRISES: CRISIL Puts 'B+' Rating on INR40MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank
facilities of Diwan Enterprises Pvt Ltd.
Facilities Ratings
---------- -------
INR40.00 Million Cash Credit B+/Stable (Assigned)
INR7.00 Million Standby Line of B+/Stable (Assigned)
Credit
INR40.00 Million Letter of Credit P4 (Assigned)
The ratings reflect Diwan's below average financial risk profile,
marked by its weak capital structure and debt protection metrics,
and exposure to risks related to a small scale of operations in
the intensely competitive steel trading business. These rating
weaknesses are partially offset by the benefits that Diwan derives
from its promoter's extensive industry experience.
Outlook: Stable
CRISIL believes that Diwan will continue to benefit over the
medium term from its promoter's experience in the steel trading
business. The outlook may be revised to 'Positive' if Diwan's
capital structure improves, and its revenues and profitability
increase significantly, thereby improving its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
Diwan's profitability declines, most likely because of continued
volatility in steel prices and sharp decline in sales, or if the
company undertakes a significant debt-funded capex programme,
resulting in deterioration in its capital structure over the
medium term.
About Diwan Enterprises
Set up in 2000 as proprietorship firm, Diwan was reconstituted as
a private limited company in 2006. Diwan is engaged in the
trading of zinc, pig iron, and steel products. The promoter-
director Mr. Goverdhan Das Diwan has around two decades of
experience in similar lines of business.
Diwan reported a profit after tax (PAT) of INR1 million on net
sales of INR585 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1 million on net sales
of INR454 million for 2008-09.
G V G INDUSTRIES: CRISIL Reaffirms 'BB-' Rating on Cash Credit
--------------------------------------------------------------
CRISIL has revised its rating outlook on the long-term bank
facility of G V G Industries Pvt Ltd to 'Positive' from 'Stable',
while reaffirming the rating on the same at 'BB-';the rating on
the short-term facilities has been upgraded to 'P4+' from 'P4'.
Facilities Ratings
---------- -------
INR60.00 Million Cash Credit BB-/Positive (Reaffirmed;
Outlook Revised from
'Stable')
INR35.00 Million Letter of Credit P4+ (Upgraded from 'P4')
INR1.00 Million Bank Guarantee P4+ (Upgraded from 'P4')
The outlook revision reflects CRISIL's belief that GVG will
improve its financial risk profile on the back of healthy demand
for GVG's products and improved yarn realizations. The rating
upgrade on the short-term facilities reflects CRISIL's belief that
GVG will maintain its improved profitability and liquidity over
the medium term. The operating margin has improved to 13.8 per
cent in 2009-10 (refers to financial year, April 1 to March 31)
from 10.4 per cent in the previous year; the revenues also grew
marginally as compared to CRISIL's estimates. The company has
reported, on a provisional basis, revenues of around INR200
million for the nine months ended December 31, 2010. The revenues
are expected to be line with CRISIL's estimates for the current
year. The improvement in profitability is expected to be
maintained over the medium term, as the company has further plans
to expand and modernize its existing operations at a total project
cost of INR20 million. This capital expenditure (capex) is
expected to be implemented in 2011-12 and is to be 80 per cent
debt funded.
The ratings continue to reflect GVG's below-average financial risk
profile marked by a high gearing. The ratings also factors in the
customer concentration in the company's revenue profile. These
rating weaknesses are partially offset by GVG's moderate business
risk profile, supported by the promoters' industry experience.
Outlook: Positive
CRISIL believes that GVG's profitability will improve over the
medium term, driven by the company's improving operating
efficiencies, as it is currently upgrading its facility, improved
yarn realizations, and the healthy demand for its products. The
ratings may be upgraded if there is a sustained improvement in
GVG's revenues and profitability, leading to an improvement in
gearing and debt protection metrics. Conversely, the outlook may
be revised to 'Stable' if the company reports weakening of capital
structure, because of larger-than-expected, debt-funded capex, or
decline in revenues or profitability.
About G V G Industries
Set up in 1983 by Mr. M Veluswamy in Udumalpet (Tamil Nadu), GVG
is a family-owned company. It manufactures cotton yarn of 40s to
100s counts, and has capacity of 32,352 spindles. It sells
through agents, primarily in Maharashtra and Tamil Nadu. GVG has
six windmills, in Udumalpet, with total capacity of 2.6 megawatts.
GVG reported a profit after tax (PAT) of INR13.4 million on net
sales of INR310.8 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.5 million on net sales
of INR295.3 million for 2008-09.
HARRY MILK: CRISIL Rates INR75 Million Cash Credit Limit at 'B+'
----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the cash credit
facility of Harry Milk Foods Pvt Ltd.
Facilities Ratings
---------- -------
INR75.0 Million Cash Credit Limit B+/Stable(Assigned)
The rating reflects HMFL's weak financial risk profile, marked by
weak debt protection measures, moderate gearing and small net
worth, small scale of operations, and its susceptibility to
adverse government regulations and the risk of epidemics. These
weaknesses are partially offset by the extensive experience of the
company's promoters in the dairy industry.
Outlook: Stable
CRISIL believes that HMFL will continue to benefit from its
promoters' extensive experience in dairy industry. However, its
financial risk profile is expected to remain weak due to continued
weak debt protection measures and large, debt-funded capacity
expansion plans over the medium term. The outlook may be revised
to 'Positive' if HMFL stabilises its operations earlier than
expected, or increases its scale of operations which leads to
improvement in financial risk profile. Conversely, the outlook may
be revised to 'Negative' in case the debt component of the
proposed capacity expansion is more than expected, resulting in a
weaker financial risk profile, or if there are significant delays
in implementation of the proposed debt-funded project.
About Harry Milk
HMFL was incorporated in 2007 by Mr. Sandeep Nagar and his family.
It was formed through the conversion of the partnership firm,
Nagar Milk Products. It manufactures pasteurised milk. Its plant
in Ghaziabad (Uttar Pradesh) has a capacity of 0.2 million litres
per day.
HMFL reported a profit after tax (PAT) of INR2.8 million on net
sales of INR628.4 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR2.4 million on net sales
of INR577.5 million for 2008-09.
MAHESH AGRO: Fitch Migrates Rating to "Non-Monitored" Category
--------------------------------------------------------------
Fitch Ratings migrated India's Mahesh Agro Private Limited's
'B-(ind)' National Long-term rating to the "Non-Monitored"
category. This rating will now appear as 'B-(ind)nm' on Fitch's
website. Simultaneously, the agency has classified the following
bank loan ratings as "Non-Monitored":
* Fund-based working capital limits of INR450m: migrated to 'B-
(ind)nm'/'F4(ind)nm' from 'B-(ind)'/'F4(ind)'; and
* Non-fund based working capital limits of INR300m: migrated to
'F4(ind)nm' from 'F4(ind)'.
The ratings have been migrated to the "Non-Monitored" category due
to lack of adequate information, and Fitch will no longer provide
ratings or analytical coverage on MAPL. The ratings will remain
in the "Non-Monitored" category for a period of six months and
will be withdrawn at the end of that period. However, in the
event the issuer starts furnishing information during this six-
month period, the ratings could be re-activated and any rating
action will be communicated through a "Rating Action Commentary".
PANSURIYA IMPEX: CRISIL Reaffirms 'P4+' Rating on INR172MM Credit
-----------------------------------------------------------------
CRISIL has reaffirmed its 'P4+' rating to Pansuriya Impex's bank
facilities. The rating continues to reflect Pansuriya Impex's
average financial risk profile and modest scale of operations in
the intensely competitive global diamond industry. These rating
weaknesses are partially offset by the benefits that Pansuriya
Impex derives from its promoters' industry experience.
Facilities Ratings
---------- -------
INR172.0 Million Post Shipment Credit P4+ (Reaffirmed)
INR88.0 Million Packing Credit P4+ (Reaffirmed)
Update
Pansuriya Impex revenues improved to INR1619 million from previous
year's INR1061 million as a result of recovery in international
diamond demand and shift in firm's product profile to higher value
diamonds. The firm's profitability improved as reflected by
operating margins of 7 per cent against 4 per cent during previous
year, also on account of entering into higher value diamond
segment. The firm shall continue to deal in higher value diamonds
over the medium term and can be expected to increase the scale
over medium term.
Pansuriya Impex, set up in 2000 as a proprietorship concern by Mr.
Paresh Pansuriya, was converted into a partnership firm in 2005,
with members of Mr. Pansuriya's family as partners. The firm
manufactures and sells cut and polished diamonds. Its
manufacturing unit is at Surat, Gujarat.
Pansuriya Impex reported a profit after tax (PAT) of INR8.3
million on net sales of INR1061.4 million for 2008-09 (refers to
financial year, April 1 to March 31), against a PAT of INR11.3
million on net sales of INR855.8 million for 2007-08.
RAMA MUSTARD: CRISIL Reaffirms 'D' Rating on INR26MM Term Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Rama Mustard and Food
Products Ltd continue to reflect delays by RMFPL in meeting term
loan obligations, owing to weak liquidity, resulting from high
working capital requirements.
Facilities Ratings
---------- -------
INR26.0 Million Term Loan D (Reaffirmed)
INR50.0 Million Cash Credit Limit D (Reaffirmed)
RMFPL has a weak financial risk profile, marked by high gearing
and weak debt protection measures and is exposed to risks relating
to intense competition in the edible oil industry. However the
company benefits from a diversified revenue profile and experience
of its promoters.
Update
For 2009-10 (refers to financial year, April 1 to March 31), RMFPL
reported an operating income of INR197 million and an operating
margin of 4.7 per cent, in line with 2008-09 performance. For the
nine months ended December 31, 2010, RMFPL achieved a turnover of
INR180 million and the company is expected to post around INR300
million revenues for 2010-11, with the management focusing on new
products to improve revenues. Currently, the company has a
diversified revenue profile with Mustard oil, Blended oil, Wheat
flour and other food products constituting 50 per cent, 20 per
cent, 20 per cent and 10 per cent respectively. RMFPL had a high
gearing of 2.11 times as on March 31, 2010, with NCATD and
interest coverage ratios at 0.02 times and 1.42 times
respectively. The average bank limit utilisation for the company
has been around 100 percent in the last twelve months ended
December, 2010, driven by large working capital requirements.
RMFPL's net cash accruals continue to be low at around INR1.7
million as on March 31, 2010. The company's incremental working
capital requirements over the last three years have been around
INR77 million against INR4.9 million internal accruals. RMFPL's
working capital requirements are likely to remain high, given its
increasing scale of operations and low cash accruals.
RMFPL reported a net loss of INR0.02 million on net sales of
INR197 million for 2009-10 (refers to financial year, April 1 to
March 31), as against a PAT of INR0.8 million on net sales of
INR197 million for 2008-09.
About the Company
Incorporated in 2007 by the Goel family, RMFPL manufactures
mustard oil and its by-products. The company has the capacity for
processing 40 tonnes of mustard seed per day at its plant in
Bijnor (Uttar Pradesh). RMFPL sells mustard oil, blended oil,
wheat flour and other food products in bulk as well as in packs
under its Raama Bhoj brand.
RAGHUVIR FERRO: CRISIL Reaffirms 'BB' Rating on INR50M Cash Credit
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of Raghuvir Ferro Alloy
Pvt Ltd, a part of the SBL group, continue to reflect RFAPL's
exposure to risks related to cyclicality and marginal market share
in the ferro alloys industry, and to high revenue concentration.
These rating weaknesses are, however, partially offset by the SBL
group's healthy financial risk profile, marked by a moderate
gearing on account of healthy cash accruals.
Facilities Ratings
---------- -------
INR50.00 Million Cash Credit BB/Stable (Reaffirmed)
INR25.00 Million Bank Guarantee P4+ (Reaffirmed)
INR50.00 Million Letter of Credit P4+ (Reaffirmed)
For arriving at the ratings, CRISIL has combined the financial
risk profiles of Special Blast Ltd, RFAPL, and Chhattisgarh Steel
and Power Ltd, collectively referred to herein as the SBL group.
SBL and RFAPL have provided corporate guarantees for CSPL's term
loan of INR730 million, raised from State Bank of India and State
Bank of Indore for the latter's 30-megawatt (MW) power project.
Additionally, there are equity investments between these entities.
As no strong operational linkages exist between the three
companies, CRISIL has not combined their business risk profiles.
Outlook: Stable
CRISIL believes that RFAPL will continue to benefit over the
medium term from its established presence in the ferro alloys
industry; moreover, the SBL group is expected to maintain its
healthy financial risk profile supported by a low gearing and
comfortable debt protection measures during this period. RFAPL's
business risk profile will, however, remain constrained by a small
scale of operations. The outlook may be revised to 'Positive' if
the SBL group reports strong growth in revenues and profitability,
resulting in higher cash accruals. Conversely, the outlook may be
revised to 'Negative' if the SBL group undertakes a large, debt-
funded capital expenditure, or generates lower-than-expected
profitability, leading to deterioration in its financial risk
profile.
About the Group
RFAPL was incorporated in 1985 by Mr. Girish Agarwal for the
production of ferro manganese and ferro silico manganese. In
December 2002, RFAPL was acquired by its current promoters,
Mr. Alok Choudhari, Mr S K Mundra, Mr. Anil Parakh, and
Mr. Dayanand Goyal, for INR15 million. RFAPL has capacity to
produce 20,040 tonnes per annum of ferro and silico manganese.
CSPL commenced operations as an independent thermal power
producer, with an installed capacity of 30 MW in September 2008.
The company has received open access to sell power independently
during the off-peak period of 18 hours per day. During the peak
period of six hours per day, CSPL sells power to Chhattisgarh
State Electricity Board. CSPL procures coal from Coal India Ltd
(Coal India) under a long-term coal supply agreement. SBL
produces industrial explosives with licensed capacity of 75,000
tonnes of slurry and bulk explosives, and 12 million meters of
detonating fuse. SBL company also trades in ammonium nitrate,
which formed about 40 per cent of its revenues in 2009-10 (refers
to financial year, April 1 to March 31). The main customers of SBL
are Coal India, and Steel Authority of India Ltd.
On a standalone basis, RFAPL reported a profit after tax (PAT) of
INR2.5 million on net sales of INR407.8 million for 2009-10,
against a PAT of INR8.3 million on net sales of INR555.9 million
for 2008-09. The SBL group reported a profit after tax (PAT) of
INR88 million on net sales of INR2865 million for 2009-10, against
a PAT of INR114 million on net sales of INR2978 million for
2008-09.
STATIONERY POINT: CRISIL Cuts Rating on INR375MM LT Loan to 'D'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Stationery Point India Ltd to 'D/P5' from 'B-/Negative/P4' because
of instances of overdrawing of cash credit facility by SPIL.
Facilities Ratings
---------- -------
INR300 Million Cash Credit D (Downgraded from
'B-/Negative')
INR375 Million Long-Term Loan D (Downgraded from
'B-/Negative')
INR25 Million Letter of Credit P5 (Downgraded from 'P4')
The ratings were predicated on SPIL's management's declaration
that the company was meeting all its financial obligations in a
timely manner and had been sanctioned ad-hoc working capital
facilities by its banker. However, CRISIL has now been informed
that SPIL has overdrawn its working capital facilities and has
also misrepresented the sanction of ad-hoc working capital
facilities by the banker. This indicates that the company's
management had provided incorrect declaration to CRISIL.
About Stationery Point
Set up by Mr. Shankar Kashid, Mr. Makarand Pandit, and Mr. Paul
Macwan in 1999, SPIL initially manufactured only stationery
products such as staple pins, U-clips, pointed pins, and note
books. In 2005, the company also started manufacturing flexible
packaging laminates (FPL) for consumer products. Currently, SPIL
derives more than 80 per cent of its revenues from sale of
flexible packaging products. It has capacity of 10,600 metric
tonnes of FPL per annum.
SPIL reported, on a provisional basis, profit after tax (PAT) of
INR70.3 million on net sales of INR1.76 billion in 2009-10 (refers
to financial year, October 1 to September 30), against a PAT of
INR38.7 million on net sales of INR1.09 billion in 2008-09.
SUJALA PIPES: CRISIL Upgrades Rating on INR7.9MM LT Loan to 'B+'
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Sujala Pipes Pvt Ltd to 'B+/Stable' from 'C', while reaffirming
the rating on the short-term facilities at 'P4'. The upgrade
reflects timely servicing of term debt by SPPL, driven by an
improvement in the company's liquidity. SPPL has completed its
capital expenditure programme, and its cash accruals are expected
to improve over the medium term driven by higher installed
capacity.
Facilities Ratings
---------- -------
INR60 Million Cash Credit B+/Stable (Upgraded from 'C')
INR7.9 Million Long-Term Loan B+/Stable (Upgraded from 'C')
INR10 Million Working Capital B+/Stable (Upgraded from 'C')
Demand Loan
INR80 Million Letter of Credit P4 (Reaffirmed)
INR1.5 Million Bank Guarantee P4 (Reaffirmed)
The ratings also reflect SPPL's weak financial risk profile,
marked by low networth, high gearing, and moderate debt protection
indicators, and exposure to risks related to intense industry
competition. These rating weaknesses are partially offset by the
benefits that SPPL derives from its promoter's extensive industry
experience and its good market position.
Outlook: Stable
CRISIL believes that SPPL will benefit over the medium term from
its established market position. The outlook may be revised to
'Positive' if the company improves its cash accruals, leading to
further improvement in its financial risk profile, particularly
its liquidity. Conversely, the outlook may be revised to
'Negative' if SPPL reports sharp decline in revenues and margins,
or contracts a large quantum of debt to fund its capital
expenditure.
About Sujala Pipes
Set up in 1982 as a partnership concern, SPPL was reconstituted as
a private limited company in 1990. Promoted by Mr. S P Y Reddy
(Member of Parliament from Nandyal [Andhra Pradesh]), the company
manufactures polyvinyl chloride pipes and fittings. Currently, it
has capacity of around 32,000 tonnes per month.
SPPL reported a profit after tax (PAT) of INR9.1 million on
operating income of INR1.81 billion for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR7.3
million on operating income of INR1.94 billion for 2008-09.
VIKRMA IMPEX: CRISIL Puts 'P4+' Rating on INR10MM Letter of Credit
------------------------------------------------------------------
CRISIL has assigned its 'P4+' rating to the bank facilities of
Vikrma Impex Pvt Ltd.
Facilities Ratings
---------- -------
INR120.00 Million Packing Credit P4+ (Assigned)
INR10.00 Million Letter Credit P4+ (Assigned)
INR10.00 Million Bank Guarantee P4+ (Assigned)
The rating reflects VIPL's constrained financial risk profile,
marked by low networth and weak debt protection metrics, and the
fragmented nature of the tea industry. These weaknesses are
partially offset by the company's average business risk profile,
marked by extensive promoter's experience and established customer
relationships.
About Vikrma Impex
VIPL trades in tea; it procures tea from auctions in North East
India and packages it under its Meri Chai and Munna's Royal Cup
brands for the export market. Around 80 per cent of its revenues
come from exports; packaged tea accounts for 60 per cent of its
sales and tea sold in bulk to traders accounts for the rest. The
company mainly exports to Russia, Kazakhstan, Iran, Jordan, and
the United Arab Emirates.
VIPL reported a profit after tax (PAT) of INR1.0 million on net
sales of INR649.7 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR0.9 million on net sales
of INR209.8 million for 2008-09.
WANBURY LTD: Fitch Lowers Rating on INR$2,852MM Loans to 'D(ind)'
----------------------------------------------------------------
Fitch Ratings downgraded India's Wanbury Ltd's National Long-term
rating to 'D(ind)' from 'BB+(ind)'. Fitch has simultaneously
downgraded the ratings on Wanbury's instruments, as follows:
* INR2,852 million long-term bank loans: downgraded to 'D(ind)'
from 'BB+(ind)';
* INR410 million fund-based cash credit limits: downgraded to
'D(ind)' from 'BB+(ind)';
* INR140 million fund-based limits: downgraded to 'F5(ind)'
from F4(ind)'; and
* INR302m non-fund based limits: downgraded to 'F5(ind)' from
'F4(ind)'.
The downgrade follows Wanbury's announcement of a corporate debt
restructuring programme in lieu of liquidity pressures.
Fitch notes during H1FY11, Wanbury's profitability was impacted by
the increase in raw material prices for its active pharmaceutical
ingredients, decline in formulation revenues and forex losses. A
lower profitability coupled with cash support extended to
Cantabria Pharma -- a loss making unit -- had a negative impact on
the company's liquidity profile and subsequently led to its
announcement of the CDR programme.
However, the company is of the opinion that profitability should
be on track post CDR due to measures undertaken for the same.
Furthermore post-CDR, the credit and liquidity profile also should
see an improvement. Fitch notes that post finalisation of the CDR
and an understanding of the terms for the same, the agency will
review the ratings.
In FY10, the company reported consolidated revenues of
INR4,725.9 million (FY09: INR2,429.4 million), EBITDA of INR507.1m
(FY09: INR7.4 million), EBIDTA margins of 10.7% (FY09: 0.3%), and
a net profit of INR84.1 million as against a net loss of INR321
million in FY09. Wanbury's consolidated debt stood at INR4,689.2
million for FY10.
Please note that FY09 numbers are for six months on account of the
accounting period changed to March-end.
Incorporated in 1988, Wanbury is into manufacturing on API and
formulations, and has manufacturing facilities in Maharashtra and
Andra Pradesh. In October 2006, the company acquired Spain-based
Cantabria Pharma for EUR42 million.
=========
J A P A N
=========
GODO KAISHA: Moody's Reviews Rating on Notes for Likely Downgrade
-----------------------------------------------------------------
Moody's Japan K.K. has placed the Class B through D Notes issued
by Godo Kaisha JLOC36 under review for possible downgrade. The
notes will mature in February 2016.
Deal Name: Godo Kaisha JLOC36
* Class B, Aa2 (sf) placed under review for possible downgrade;
previously confirmed at Aa2 (sf) on June 12, 2009
* Class C1/C2, Baa1 (sf) placed under review for possible
downgrade; previously downgraded to Baa1 (sf) from A2 (sf) on
June 12, 2009
* Class D, Caa1 (sf) placed under review for possible downgrade;
previously downgraded to Caa1 (sf) from B2 (sf) on June 12,
2009
* JLOC36, effected in May 2007, represents the securitization of
34 non-recourse loans. Eleven of the loans have been paid
down in full and the principal of two loans suffered partial
impairment as a result of special servicing.
The transaction is secured currently by 21 loans. Three of the 21
remaining loans have been placed under special servicing.
The current review was prompted by Moody's concerns about the
recovery from the properties when they are sold and hence the need
to reconsider its recovery assumptions.
In its review, Moody's will re-assess -- and add further stress to
-- its recovery assumptions for the properties, which will
incorporate their operating status and the progress of special
servicing.
JAPAN AIRLINES: Maximus Air Buys Three JAL Planes
-------------------------------------------------
Tamara Walid at Bloomberg News reports that Maximus Air Cargo, a
U.A.E.-based cargo-aircraft operator, bought three Airbus SAS
A300-600 regional freighters from Japan Airlines Corp. for 350
million dirhams (US$95.3 million) as part of its expansion plan.
Bloomberg, citing Maximus in an e-mailed statement Thursday, says
the planes, which bring the carrier's fleet to 11, will be
converted from passenger use into freighters and help the company
expand operations in the Middle East, North Africa, Asia and
Europe.
Abu Dhabi Aviation Co. PJSC owns 95% of Maximus, Bloomberg notes.
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
petitions to commence 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.
JLOC39 TRUST: Moody's Reviews Certificates for Possible Downgrade
------------------------------------------------------------------
Moody's Japan K.K. placed the Class A through D trust certificates
issued by JLOC39 Trust under review for possible downgrade. The
final maturity of the trust certificates will take place in
April 2014.
Deal Name: JLOC39 Trust
* Class A, Aaa (sf) Placed Under Review for Possible Downgrade;
previously on Feb 16, 2010 Confirmed at Aaa (sf)
* Class B, A2 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 16, 2010 Downgraded to A2 (sf) from Aa2 (sf)
* Class C, Ba2 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 16, 2010 Downgraded to Ba2 (sf) from Baa2
(sf)
* Class D, B3 (sf) Placed Under Review for Possible Downgrade;
previously on Feb 16, 2010 Downgraded to B3 (sf) from Ba3 (sf)
The JLOC 39 Trust, effected in December 2007, represents the
securitization of 14 specified bonds and a non-recourse loan
issued by/extended to 10 issuers/borrowers. The transaction is
currently secured by seven specified bonds, which are backed by
eight properties.
The current review has been prompted by Moody's concerns about the
recovery from the properties when they are sold and the need to
reconsider its recovery assumptions.
In its review, Moody's will re-assess -- and add further stress to
-- its recovery assumptions for the properties, incorporating
their operating status.
JLOC XXXIV: S&P Lowers Ratings on Class C Trust Certs. to 'BB'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'BB (sf)' from
'BBB- (sf)' its rating on the class C trust certificates issued
under the JLOC XXXIV transaction. At the same time, Standard
& Poor's affirmed its ratings on classes A, B, D, and X of the
same transaction.
Of the two TMK bonds and single nonrecourse loan that originally
backed the trust certificates, only the two TMK bonds remain.
Standard & Poor's downgraded class C because:
- In June 2010, S&P lowered its assumption with respect to
the likely collection amount from the four properties backing
one of the two aforementioned TMK bonds (a property
liquidation-type TMK bond maturing in April 2011, which
originally represented about 40% of the total initial
issuance amount of the trust certificates). Under S&P's
revised assumption, it estimated the likely collection
amount to be about 67% of its initial assumption. Two of
the four properties in question were sold after S&P made the
downward revision. S&P recently learned from the asset
manager that the estimated market value of the two properties
that remain at this point is far less than its revised
underwriting value as of June 2010. Accordingly, this time,
S&P have again lowered its assumption with respect to the
likely collection amount after considering the progress of
the sales of the properties. S&P currently estimate the
combined value of the properties to be about 42% of its
initial underwriting value.
- In June 2010, S&P lowered its assumption with respect to
the likely collection amount from the eight properties
backing the other TMK bond (a property liquidation-type TMK
bond maturing in September 2011, which originally represented
about 46% of the total initial issuance amount of the trust
certificates). Under its revised assumption, S&P estimated
the likely collection amount to be about 77% of its initial
assumption. Four of the eight properties in question were
sold after S&P made the downward revision. This time, S&P
have again lowered its assumption with respect to the likely
collection amount from the four properties that remain at
this point after considering information provided from the
asset manager on the current progress of the sales of the
properties. S&P currently estimate the combined value of the
properties to be about 74% of its initial underwriting value.
S&P affirmed ratings on classes A and B because the loan-to-value
(LTV) ratios have improved somewhat from the initial LTV ratios,
reflecting progress in the redemption of principal on the upper
tranches.
As for the rating on class D, S&P affirmed its rating on that
class because it had already lowered it to 'CCC (sf)' on
June 30, 2010.
JLOC XXXIV is a multi-borrower CMBS transaction. The trust
certificates were initially secured by two TMK bonds and a
nonrecourse loan. The TMK bonds and the nonrecourse loan were
originally backed by 61 real estate properties and two loans
extended to two obligors. The transaction was arranged by Morgan
Stanley Japan Securities Co. Ltd., and ORIX Asset Management &
Loan Services acts as the servicer for this transaction.
The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's legal
final maturity date in October 2013 for the class A trust
certificates, the full payment of interest and ultimate repayment
of principal by the legal final maturity date for the class B to D
certificates, and the timely payment of available interest for
the interest-only class X certificates.
Rating lowered
JLOC XXXIV Trust Certificate
JY67.1 billion trust certificates due October 2013
Class To From Initial issue amount
C BB (sf) BBB- (sf) JY8.9 bil.
Ratings Affirmed
JLOC XXXIV Trust Certificate
Class Rating Initial issue amount
A AAA (sf) JY42.5 bil.
B AA (sf) JY8.8 bil.
D CCC (sf) JY6.9 bil.
X* AAA (sf) JY67.1 bil. (initial notional principal)
*Interest only
KAISA GROUP: Moody's Says Bond Issuance Won't Affect Low-B Ratings
------------------------------------------------------------------
Moody's Investors Service sees no immediate impact on Kaisa Group
Holdings Ltd's B1 corporate family rating, B2 senior unsecured
bond rating, or stable outlook, following the company's
announcement of its RMB2 billion 8.50% bond issue.
The proceeds from the issuance will be used to finance the
acquisition of land in China as well as real estate projects.
"The issuance is an example of Kaisa management's efforts to
secure near-term funding for its operations in anticipation of the
government's tighter controls against domestic bank lending to the
property sector," says Kaven Tsang, a Moody's AVP/Analyst.
"Its pro-forma credit metrics -- adjusted debt/capitalization and
EBITDA interest coverage -- will move towards the weaker end of
the range for its rating level," adds Tsang, who is also Moody's
lead analyst for Kaisa.
Moody's does not expect that Kaisa's sales in 2011 to fall below
the 2010 level of RMB10 billion, given its larger portfolio of
projects under development and additional projects in second- and
third-tier cities, which are less affected by the government's
control measures.
As a result, Kaisa's projected adjusted debt/capitalization for
2011 will remain under 55-60% and EBITDA interest coverage around
3x. These ratios will remain within the range for the B1 rating.
However, Kaisa's ratings would be under pressure if its contract
sales in 2011 materially fall short of Moody's expectation, or if
more debt is raised to fund aggressive land acquisitions such that
its adjusted debt/capitalization rises above 55-60% and EBITDA
interest coverage below 2.5-3x.
Moody's last rating action on Kaisa was on May 5, 2010, when it
affirmed the company's B1 corporate family rating and its B2
senior unsecured bond rating with a stable outlook.
The principal methodology used in this rating was the Global
Homebuilding Industry published in March 2009.
Kaisa Group Holdings Ltd is a Shenzhen-based property developer
established in 1999 and listed on the Hong Kong Stock Exchange in
December 2009. It has 49 projects in the Pearl River and Yangtze
River deltas, in the Bohai Rim, and also in western China.
L-JAC3 TRUST: Fitch Downgrades Ratings on Five Classes of Notes
---------------------------------------------------------------
Fitch Ratings has downgraded five classes of L-JAC3 Trust's trust
beneficiary interests due April 2013 and affirmed ratings on four
classes. Simultaneously, the agency has withdrawn the rating on
the interest (dividend) - only Class X-2 TBIs. The transaction is
a Japanese multi-borrower type CMBS securitisation, with one
remaining loan. The rating actions are as follows:
* JPY3.1bn, Class A TBIs affirmed at 'AAAsf'; Outlook Stable;
* JPY4.0bn, Class B TBIs affirmed at 'AAsf'; Outlook Stable;
* JPY4.0bn, Class C TBIs downgraded to 'BB+sf' from 'BBBsf';
Outlook Stable;
* JPY4.0bn, Class D-1 TBIs downgraded to 'CCCsf' from 'BB-sf';
Assigned a Recovery Rating of 'RR4';
* JPY1.4bn, Class E-1 TBIs downgraded to 'CCCsf' from 'Bsf';
Assigned a Recovery Rating of 'RR6';
* JPY1.4bn, Class F-1 TBIs affirmed at 'CCCsf'; Recovery Rating
revised to 'RR6' from 'RR4';
* JPY1.5bn, Class G-1 TBIs affirmed at 'CCCsf'; Recovery Rating
of 'RR6';
* JPY1.0bn, Class H-1 TBIs downgraded to 'CCsf' from 'CCCsf';
Recovery Rating of 'RR6'; and
* JPY0.583bn, Class I TBIs downgraded to 'CCsf' from 'CCCsf';
Recovery Rating of 'RR6';
The rating on the interest (dividend) - only Class X-2 TBIs of
'AAAsf' with Stable Outlook has been withdrawn.
Fitch downgraded the Class C, D-1, E-1, H-1 and I TBIs, based on
the revaluation of the sole remaining collateral property backing
this transaction. The affirmations of the ratings on the Class A
and B TBIs reflect Fitch's expectation that amounts due will be
repaid in full by legal final maturity, in line with the
respective rating categories.
The remaining property is a large scale retail mall located in
suburban greater Tokyo. The cash flow performance of this
property has been stable to date. However, a decline in rent is
highly likely as a result of the recent legal dispute between the
asset manager of the collateral property and its tenant. Since
the asset manager has indicated it is willing to settle on a
reduced rent with the tenant, the dispute is expected to be
resolved in the near future.
Fitch has revised its rent assumption downwards in line with the
expected rent that Fitch considers to be conservative as a result
of the expected settlement. The agency has also increased the cap
rate used in its analysis, to reflect the current stressed retail
property market in Japan. As a result, Fitch has adopted a value
for the property that is 47% lower than its initial value, for the
purpose of this review.
Fitch has maintained the Stable Outlooks on the Class A, B and
C TBIs as, should the loan default, the agency believes that
recovery of a sufficient amount of the loan to repay these classes
will be underway within a year of default.
The rating on the interest - only Class X-2 TBIs, which addresses
only the likelihood of receiving dividend payments while principal
on the related TBIs remains outstanding as per the trust
agreement, has been withdrawn.
Fitch assigned ratings to this transaction in October 2006. At
closing, the TBIs were secured by seven loans collateralised by 17
properties. Since then, six classes of TBIs have been paid in
full and the remaining TBIs are ultimately secured by one loan
collateralised by one property.
PEGASUS FUNDING: Moody's Lowers Rating on Two Class Loans to B3
----------------------------------------------------------------
Moody's Japan K.K. has downgraded to B3 (sf) from Ba2 (sf) the
ratings on Pegasus Funding's Class A1 and A2 loans. The final
maturity takes place in December 2014.
The complete rating actions are as follows:
Deal Name: Pegasus Funding
* Class A1, Downgraded to B3 (sf); previously on December 21,
2010, Downgraded to Ba2 (sf) from Baa2 (sf) and Remains On
Review for Possible Downgrade
* Class A2, Downgraded to B3 (sf); previously on December 21,
2010, Downgraded to Ba2 (sf) from Baa2 (sf) and Remains On
Review for Possible Downgrade
Class: A1 and A2
Issue Amount (commitment line): JPY91.9 billion
Dividend: Floating
Issue Date: September 29, 2006
Final Maturity Date: December 11, 2014
Underlying Asset: Real estate-backed loan receivables
The commitment line, the underlying assets of which are real
estate-backed loans to small and medium-sized enterprises, was
established in September 2006.
The initial servicer went bankrupt in February 2009 and a new
servicer started servicing all of the loan receivables in the
transaction.
These rating actions take into consideration:
1) Moody's view that the recovery rates for the collateral
properties will remain at their current low levels or will
decline further, given actual collection results, the
business plan for the sale of the properties, and the
collection strategy.
2) A substantial decline in credit enhancement.
On December 21, 2010, Moody's downgraded the ratings on the Class
A1 and A2 loans to Ba2 (sf) because of 1) the expectation that
recovery rates would decline further and 2) substantial declines
in credit enhancement.
Moody's kept the ratings on review for further downgrade because
it needed to assess the expected collection amounts and collection
strategy in the new business plan.
The arranger's collection strategy is delineated below:
1) The pace of property sales will increase; the arranger
expects to sell the properties in the next year and a half.
2) As for approximately 60% of the loan receivables (based on
the number of loans), the collateral properties will be
auctioned off.
3) The expected collection amounts in the new business plan
fall below Moody's expectation.
Moody's notes that the cumulative recovery rate on the loan
receivables from April 2009 to December 2010 was lower than its
expectation of 50-60%.
Moody's assumes that the recovery rates for the properties will
remain at the current low levels, or decline further, given the
nature of the servicing policies, and the likelihood of poor sales
in a difficult property market.
Nevertheless, sales have progressed, and the Class A1 and A2 loans
have been redeemed, albeit slowly. As of December 2010, the total
outstanding balance of these loans was around 80% of the amount in
February 2009.
However, the sale of the properties has revealed the existence of
uncollected loan receivables, a situation that has led to a
substantial decline in credit enhancement, as Moody's assumes that
payments from obligors cannot be expected.
As such, the Class A1 and A2 loans may incur losses, although the
amounts will vary according to future collections, including any
auctions.
Hence, Moody's has downgraded its ratings on the Class A1 and A2
loans.
As of December 2010, the number of obligors in this transaction
was around 100 and the number of properties around 350.
The principal methodology used in this rating was "Moody's
Approach to Rating Transactions Backed by Real Estate
Collateralized SME Loans in Japan" published on September 30,
2010. In addition, Moody's publishes a weekly summary of
structured finance credit, ratings and methodologies.
Moody's did not receive or take into account a third-party due
diligence report on the underlying assets or financial instruments
related to the monitoring of this transaction in the past six
months.
====================
N E W Z E A L A N D
====================
FINANCE AND LEASING: Goes Into Receivership, Owes NZ$17 Million
---------------------------------------------------------------
Paul McBeth at BusinessDesk reports that Finance and Leasing Ltd
has been placed in receivership after falling short of tougher
regulations governing finance companies, the first such failure
because of the harder line. The report relates that Perpetual
Trust head of corporate trust Matthew Lancaster said Brett
Chambers and Paul Munro of Deloitte were appointed receivers after
the company wasn't able to hold enough cash to meet the Reserve
Bank's stricter line on non-bank deposit takes.
Some 227 investors are owed about NZ$17 million, none of which was
covered by the government's extended retail deposit guarantee,
according to BusinessDesk.
"Finance and Leasing has been unable to re-gear its balance sheet
sufficiently in the time available on a consistent basis," Mr.
Lancaster said in a statement obtained by the news agency. "The
receivers will need to make their assessment of the state of the
company's assets and liabilities before any estimate of return of
investors' funds can be made," he added.
BusinessDesk discloses that the central bank was expecting more
failures and consolidation in the non-bank finance sector after it
imposed higher requirements for finance companies, credit unions
and building societies after the sector's collapse in the past
five years. The new regulations came into effect on December 1.
The report notes that Finance & Leasing applied to the Reserve
Bank for a waiver on its breach, but the three month stand-down
period meant it wouldn't be able to lodge a prospectus to raise
funds from the public and couldn't keep operating.
Headquartered in Christchurch, Finance and Leasing is a 28-year-
old minnow lender.
WALTER PEAK: Creditors Unlikely to Recoup Money from Firm
---------------------------------------------------------
The Southland Times reports that creditors owed tens of millions
of dollars after disastrous Walter Peak and Queenstown-based
property ventures went belly up were unlikely to be repaid.
The Southland Times relates that Roderick Nielsen, his brother
Greg and another director, Justin Russell, of London, were behind
numerous developments in Queenstown, including the planned NZ$50
million Walter Peak project.
Rod Nielsen, who bought Walter Peak land for NZ$10 million in 2006
and planned to build a luxury lodge, homesteads and cottages, was
adjudicated bankrupt in 2009 and is understood to be living in Las
Vegas.
Citing Deloitte liquidators David Vance and Vivien Madsen-Ries'
latest report for Walter Peak Developments, The Southland Times
discloses that secured creditor and mortgagee Strategic Finance
was owed NZ$20.6 million and unsecured creditors were owed NZ$4.3
million. So far, Stuff.co.nz says, preferential claims of
NZ$679,385 were lodged with the Deloitte liquidators.
"Due to the likely shortfall to the secured creditor under the
receivership, it is highly unlikely a dividend will be available
to creditors," according to the liquidators' report obtained by
The Southland Times.
According to The Southland Times, the receivers, Anthony McCullagh
and Stephen Lawrence of PFK Corporate Recovery & Insolvency, said
the company owes the Inland Revenue Department NZ$597,069.
The Southland Times adds that the debt owed to unsecured creditors
was NZ$4.42 million, including NZ$4.2 million for a loan, NZ$5,809
owed to the Queenstown Lakes District Council and a further
NZ$112,500 claimed by Inland Revenue for "gross carelessness" when
pre-receivership GST returns were not filed.
"We do not expect there to be any funds available to preferential
creditors . . . or unsecured creditors," The Southland Times
quoted the receivers as saying.
The Southland Times relates PFK senior manager Chris McCullagh
said the Walter Peak debt was a phenomenal amount of money.
Mr. McCullagh, as cited by The Southland Times, said it was a
question of waiting until the market improved before selling
property but substantial losses were likely.
According to The Southland Times, PFK struggled to get any
information from Mr. Nielsen, his brother or Walter Peak co-
director Justin Russell. Investigators travelled to Europe to try
to find Mr. Russell but were unsuccessful, he said.
Mr. McCullagh said it was extremely unlikely Strategic or secured
creditors would be repaid in full, The Southland Times adds.
Related Failed Companies
The Southland Times reports that the Nielsen brothers were also
directors or co-directors of other failed Queenstown companies,
including Thompson St Villas, which was finally liquidated in
August 2010, with a loss of NZ$31,067 to creditors and NZ$16,091
owed to Deloitte liquidators.
According to The Southland Times, a final report for Nielsen
companies Belfast Terrace No3, Fernhill Land Holdings and five
other companies, all in liquidation, said no funds were available
to creditors.
Unsecured creditors for Fernhill Land Holdings claimed NZ$25.7
million and creditors for Belfast Terrace -- a high-end
development in Queenstown -- claimed almost NZ$300,000, The
Southland Times notes.
Walter Peak Developments is the company behind a NZ$50 million
resort development at Walter Peak. PFK Corporate Recovery and
Insolvency Ltd took control of the 38ha property on the shores of
Lake Wakatipu in December 2008. PFK also took control of
associated companies Walter Peak Developments Ltd, Queenstown
Alpine Developments Ltd and Queenstown Villas (NZ) Ltd.
David Vance and Vivien Madsen-Ries of Deloitte were subsequently
appointed as liquidators.
=================
S I N G A P O R E
=================
ACE FAMILY: Creditors Get 6.42149% Recovery on Claims
-----------------------------------------------------
ACE Family Lifestyle (S) Pte Ltd declared the preferential
dividend on January 12, 2011.
The company paid 6.42149% to the received claims.
The company's liquidator is:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road, #06-11
Singapore 069118
BABCOCK & BROWN: Creditors' Proofs of Debt Due February 22
----------------------------------------------------------
Creditors of Babcock & Brown (Singapore) Pte Ltd, which is in
voluntary liquidation, are required to file their proofs of debt
by February 22, 2011, to be included in the company's dividend
distribution.
The company's liquidators are:
Chee Yoh Chuang
Abuthahir Abdul Gafoor
C/O 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
DG2L TECHNOLOGIES: Court to Hear Wind-Up Petition on February 11
----------------------------------------------------------------
A petition to wind up the operations of DG2L Technologies Pte Ltd
will be heard before the High Court of Singapore on February 11,
2011, at 10:00 a.m.
Chong, Lim & Partnership Llp filed the petition against the
company on January 12, 2011.
The Petitioner's solicitors are:
Attorneys Inc. LLC
24 Raffles Place
#25-06A Clifford Centre
Singapore 048621
HAIKE OIL: Creditors' Proofs of Debt Due February 22
----------------------------------------------------
Creditors of Haike Oil Trading (Singapore) Pte Ltd, which is in
voluntary liquidation, are required to file their proofs of debt
by February 22, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Yiong Kok Kong
c/o 19 Keppel Road
#02-01 Jit Poh Building
Singapore 089058
MARINE PROPERTIES: Court to Hear Wind-Up Petition on February 11
----------------------------------------------------------------
A petition to wind up the operations of Marine Properties Pte Ltd
will be heard before the High Court of Singapore on February 11,
2011, at 10:00 a.m.
The Comptroller of Goods and Services Tax filed the petition
against the company on January 14, 2011.
The Petitioner's solicitors are:
Infinitus Law Corporation
77 Robinson Road
#16-00, Robinson77
Singapore 068896
MEMTECH TECHNOLOGIES: Creditors' Proofs of Debt Due February 20
---------------------------------------------------------------
Creditors of Memtech Technologies Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by Feb. 20,
2011, to be included in the company's dividend distribution.
The company's liquidator is:
Chua Keng Yang
89 Short Street
#04-01 Golden Wall Centre
Singapore 188216
OAS ENGINEERING: Court to Hear Wind-Up Petition on February 11
--------------------------------------------------------------
A petition to wind up the operations of OAS Engineering Pte Ltd
will be heard before the High Court of Singapore on February 11,
2011, at 10:00 a.m.
The Comptroller of Income Tax filed the petition against the
company on January 13, 2011.
The Petitioner's solicitors are:
Infinitus Law Corporation
77 Robinson Road
#16-00, Robinson77
Singapore 068896
PROTRUST ASIA: Creditors' Proofs of Debt Due February 21
--------------------------------------------------------
Creditors of Protrust Asia Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by Feb. 21,
2011, to be included in the company's dividend distribution.
The company's liquidators are:
Bob Yap Cheng Ghee
Tay Puay Cheng
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
STICKKEY SECURITY: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Singapore entered an order on January 14, 2011,
to wind up the operations of Stickkey Security Access Pte Ltd.
Flexible Innovations Ltd filed the petition against the company.
The company's liquidators are:
Mr. Timothy James Reid
M/s Ferrier Hodgson
8 Robinson Road #12-00
ASO Building
Singapore 048544
SURROUNDING ENTERPRISE: Court Enters Wind-Up Order
--------------------------------------------------
The High Court of Singapore entered an order on December 31, 2010,
to wind up the operations of Surrounding Enterprise Pte Ltd.
Yong Yoke Keong filed the petition against the company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road, #06-11
Singapore 069118
*********
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 U. Pascual, Marites O. Claro, Joy A. Agravante,
Rousel Elaine T. Fernandez, Psyche A. Castillon, Julie Anne G.
Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A.
Chapman, Editors.
Copyright 2011. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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electronic re-mailing and photocopying) is strictly prohibited
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Information contained herein is obtained from sources believed
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*** End of Transmission ***