/raid1/www/Hosts/bankrupt/TCRAP_Public/110203.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, February 3, 2011, Vol. 14, No. 24
Headlines
A U S T R A L I A
DOUBLE D CONSTRUCTIONS: Faces Liquidation as Creditors Meet Today
MANACCOM: Goes Into Administration, Taps Deloitte as Administrator
MASSADA COLLEGE: Placed Into Administration, Seeks Financial Aid
RAY WHITE: Receivers Put Gannon's Franchise On the Market
H O N G K O N G
CHINA PROFIT: Creditors Get 1.00% Recovery on Claims
DICKSON PROPERTIES: Annual Meetings Set for February 28
HOUSTON OFFSHORE: Members' Final Meeting Set for February 28
INTERFORM INVESTMENT: Annual Meetings Set for February 28
MEDIA INTERNATIONAL: Members' Final Meeting Set for March 4
NEW WAVE: Creditors' Proofs of Debt Due February 14
NEWTIME INVESTMENTS: Members' Final Meeting Set for February 28
PIER INT'L: Members' Final Meeting Set for March 1
REDCHIP INT'L: Members' and Creditors' Meetings Set for Feb. 11
SELCO SALVAGE: Members' and Creditors' Meetings Set for Feb. 18
SELECT FOOD: Annual Meetings Slated for February 11
SELPRO TACTICAL: Court to Hear Wind-Up Petition on February 23
STAR CHAMPION: Court to Hear Wind-Up Petition on February 16
SUNWELL METALS: Members' & Creditors' Meeting Set for March 1
SURE BRIGHT: Creditors' Proofs of Debt Due February 18
TOP BLOOM: Court to Hear Wind-Up Petition on February 23
UNION BRIDGE: Court to Hear Wind-Up Petition on February 23
UNIROSS BATTERIES: Creditors to Get 3% Recovery on Claims
WELL FETCH: Placed Under Voluntary Wind-Up Proceedings
WINSHAN CONSTRUCTION: Annual Meetings Set for February 28
I N D I A
ALCOB SYSTEMS: CRISIL Assigns 'BB' Rating to INR15MM Term Loan
ANC ENTERPRISES: CRISIL Places 'D' Rating on INR15.2MM Term Loan
BHALARIA METAL: CRISIL Rates INR50 Million LT Bank Loan at 'BB+'
CHANDRASHEKHAR EXPORTS: CRISIL Puts 'P4+' Rating on INR45MM Credit
ERIS LIFESCIENCES: CRISIL Rates INR150 Mil. Cash Credit at 'BB+'
EVERGREEN VENEERS: CRISIL Reaffirms 'BB-' Cash Credit Rating
GARDEN VALLEY: CRISIL Assigns 'P4+' Rating to INR10MM Standby LOC
HINDUSTHAN MALLEABLES: CRISIL Puts 'BB' Rating on Cash Credit
GEMINI EQUIPMENT: CRISIL Rates INR150MM Rupee Term Loan at 'BB+'
GREEN WOODCRAFTS: CRISIL Assigns 'B+' Rating to INR4.9MM Term Loan
KAVERI YARNS: CRISIL Assigns 'BB' Rating to INR43MM LT Loan
KMG ROLLING: CRISIL Rates INR200.0 Million Cash Credit at 'B'
INDIAN CHILLIES: CRISIL Places 'BB+' Rating on INR6MM LT Loan
RANKAS TEXFAB: CRISIL Places 'BB-' Rating on INR42.3MM Term Loan
SHIVA POLYTUBES: CRISIL Assigns 'BB' Rating to INR35MM Cash Credit
I N D O N E S I A
BAKRIE LIFE: Fails to Pay Interest on Clients' Funds
STAR ENERGY: Fitch Affirms Issuer Default Rating at 'B+'
J A P A N
HELIUM CAPITAL: S&P Withdraws 'CCC-' Rating on Series 79 Notes
N-SLOT OPUS: S&P Affirms Ratings on Two Classes of Certificates
M A L A Y S I A
TRACOMA HOLDINGS: Defaults on MYR3.7 Million Bonds Payment
LINEAR CORPORATION: Wind-Up Petition Served Against Unit
SWEE JOO: Still in Talks With MTT Shipping, Lenders Over Plan
SWEE JOO: Discloses More Than 10% Deviation in Q4 Results
N E W Z E A L A N D
CRAFAR FARMS: Receivers Win Court Case Over Heifers Ownership
PIKE RIVER: Police Owes Contractors Millions
* Grape Oversupply May Spur Trouble to Kiwi Wine Firms: Deloitte
P H I L I P P I N E S
PHILIPPINE AIRLINES: DOLE Suspends Compulsory Retirement at PAL
S R I L A N K A
VALLIBEL FINANCE: Fitch Raises National Long-Term Rating to 'BB-'
T H A I L A N D
TRUE CORPORATION: Moody's Affirms 'B2' Corporate Family Rating
- - - - -
=================
A U S T R A L I A
=================
DOUBLE D CONSTRUCTIONS: Faces Liquidation as Creditors Meet Today
-----------------------------------------------------------------
Mat Nott at the Fraser Coast Chronicle reports that more than 150
creditors of Double D Constructions have been invited to attend a
crisis meeting at the Peppers Pier Resort in Hervey Bay today,
February 3, as the chase for about one million dollars owed by the
company begins.
Administrator Crouch Amirbeaggi Pty Ltd. said that of these
creditors, about 30 are Fraser Coast businesses seeking payment of
debts ranging in size from AU$30,000 down to AU$500, the Fraser
Coast Chronicle relates.
Fraser Coast Chronicle says the administrator has revealed Double
D Constructions is itself awaiting receipt of about AU$500,000
from its own creditors -- the lion's share of that amount being
owed to it by government departments.
Double D Constructions entered into voluntary liquidation on
January 21 and, as prescribed by the Corporations Act 2001, the
administrator has 25 days from that date to decide the fate of the
company, the report notes.
According to the report, a spokesman for the administrator said
creditors at the February 3 meeting would appoint a committee to
represent them, and confirm or replace the administrator.
But it is at a second meeting, which must be held before February
15 as required by the Corporations Act 2001, that the final
decision will be made about the future of Double D Constructions,
Fraser Coast Chronicle discloses.
"At that meeting the (company) directors can propose a deed of
company arrangement under which creditors can receive a certain
number of cents in the dollar for what they are owed," the report
quoted a spokesman for Crouch Amirbeaggi as saying. "If the
creditors reject the offer then the company will be forced into
liquidation."
Double D Constructions is a contractor based in Fraser Coast,
Australia.
MANACCOM: Goes Into Administration, Taps Deloitte as Administrator
------------------------------------------------------------------
ARN News reports that Manaccom has gone into administration after
its parent company, Jumbo Interactive Limited, decided to stop
funding the business. Deloitte has been appointed as the
administrator to the subsidiary.
"We had been funding the business for years and tried to turn it
around but it became apparent that it wasn't going to reach
profitability for a while," ARN quoted Jumbo Chief Executive
Officer and Executive Director Mike Veverka as saying.
About 35 staff will be impacted by the decision to wind down the
Manaccom business, Mr. Veverka said, according to ARN.
ARN recounts that Manaccom experienced a trading loss of AU$3.8
million before tax in the 2010 financial year. The report relates
that the group incurred a total loss of AU$7.3 million when
factoring in additional extraordinary expenses, including write-
downs. Jumbo claimed adverse market conditions for over-the-
counter software, was a major contributing factor to Manaccom's
loss, ARN discloses.
ARN notes that Manaccom reported a poor financial performance,
after losing its most significant vendor partner, Trend Micro, in
May 2009. The parent company intends to put a proposal for a deed
of company arrangement in place to ensure a substantial return to
Manaccom creditors, the report relates.
The list of creditors has not been released at this stage. The
first creditors meeting will be held on February 10.
Headquartered in Australia, Manaccom is a software specialist
distributor. Manaccom specialized in providing publishing and re-
publishing services for software developers. Its distribution
line-up included McAfee, Acronis, Net Nanny and MYOB.
MASSADA COLLEGE: Placed Into Administration, Seeks Financial Aid
----------------------------------------------------------------
Massada College has been placed into administration
Eastern courier, citing online news service J-Wire, reports that
the college is looking to the broader Australian Jewish community
for financial help. The report relates that Massada College has
been struggling to survive during the past few years with just 30
enrolments.
Early last year, the report recounts, the college received a
AU$100,000 bailout from Melbourne entrepreneur Joseph Gutnick.
Massada College is a Glenside-based Jewish primary school.
RAY WHITE: Receivers Put Gannon's Franchise On the Market
---------------------------------------------------------
Tracey McBean at goldcoast.com.au reports that receivers to
Gary Gannon's Ray White Broadbeach/Mermaid Beach franchise have
placed the troubled business on the market.
Mr. Gannon, who called in the receivers just before Christmas, had
been optimistic he could trade his high-profile group through its
financial woes, but last week declined to comment on the latest
development, goldcoast.com.au says.
According to goldcoast.com.au, advertisements placed in newspapers
by receivers Graham Killer and Michael McCann, of Grant Thornton,
on January 28, sought expressions of interest in the group's
residential, commercial and property-management businesses, which
have combined revenue of AU$11 million a year.
The Ray White Broadbeach and Mermaid Beach offices,
goldcoast.com.au discloses, have more than AU$450 million in
residential listings and chalked up commissions of more than AU$10
million in the 2010 financial year while their residential and
commercial rent rolls together earn management commissions of
about AU$926,000 annually.
The businesses are being offered for sale separately or together
in the expression of interest campaign which closes in four weeks,
goldcoast.com.au notes.
The report says the receiver's move followed the franchise's
annual Blockbuster auction on January 22 which netted at least
AU$15 million in sales.
According to the report, Ray White Queensland chief executive
Peter Camphin said there had been interest, including from other
Ray White franchisees, in the business since its receivership
became public.
"Ray White Broadbeach is a really profitable, strong business,"
goldcoast.com.au quoted Mr. Camphin as saying. "It's not in
receivership because of Ray White Broadbeach. It's in
receivership because of expansion and business entities that
Gary went into in other areas.
"Ray White's viewpoint is that the business is continuing to
operate. Whether Gary Gannon is the new owner or not will be
determined by whether he's got the capacity to buy it back. I
don't know if that's the case or not."
Mr. Camphin, as cited by goldcoast.com.au, said the business could
be sold without the Ray White name.
The report relates that Mr. Camphin said some of the 90 staff had
left voluntarily since the receivership but none had been made
redundant.
In 2009, goldcoast.com.au says, Mr. Gannon's Broadbeach business
turned over AU$287 million and his Mermaid office AU$112 million,
placing both in the top 10 Ray White franchises in Queensland.
His debt is reportedly less than AU$5 million.
================
H O N G K O N G
================
CHINA PROFIT: Creditors Get 1.00% Recovery on Claims
----------------------------------------------------
China Profit Development Limited, which is in liquidation,
declared the third and interim ordinary dividend to its creditors
on February 1, 2011.
The company paid 1.00% for third and interim ordinary claims.
The company's liquidators are:
Jacky C W Muk
Edward S Middleton
27th Floor, Alexandra House
18 Chater Road
Central, Hong Kong
DICKSON PROPERTIES: Annual Meetings Set for February 28
-------------------------------------------------------
Members and creditors of Dickson Properties Limited will hold
their annual meetings on February 28, 2011, at 3:00 p.m., and 3:30
p.m., respectively at the 62/F, One Island East, 18 Westlands
Road, Island East, in Hong Kong.
At the meeting, Stephen Liu Yiu Keung, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
HOUSTON OFFSHORE: Members' Final Meeting Set for February 28
------------------------------------------------------------
Members and creditors of Houston Offshore International Limited
will hold their final general meeting on February 28, 2011, at
10:00 a.m., at 6/F., Greenwich Centre, 260 King's Road, North
Point, in Hong Kong.
At the meeting, Ng Kin Yung Tony, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
INTERFORM INVESTMENT: Annual Meetings Set for February 28
---------------------------------------------------------
Members and creditors of Interform Investment Company Limited will
hold their annual meetings on February 28, 2011, at 4:00 p.m., and
4:30 p.m., respectively at the 62/F, One Island East, 18 Westlands
Road, Island East, in Hong Kong.
At the meeting, Stephen Liu Yiu Keung, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
MEDIA INTERNATIONAL: Members' Final Meeting Set for March 4
-----------------------------------------------------------
Members of Media International Investment Limited will hold their
final general meeting on March 4, 2011, at 10:30 a.m., at
Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong.
At the meeting, Natalia K M Seng, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
NEW WAVE: Creditors' Proofs of Debt Due February 14
---------------------------------------------------
Creditors of New Wave Research (Hong Kong) Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by February 14, 2011, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on January 14, 2011.
The company's liquidator is:
Yan Tat Wah
5/F, Dah Sing Life Building
99-105 Des Voeux Road
Central, Hong Kong
NEWTIME INVESTMENTS: Members' Final Meeting Set for February 28
---------------------------------------------------------------
Members of Newtime Investments Limited will hold their final
meeting on February 28, 2011, at 11:30 a.m., at Units 3401-2, 34th
Floor, AIA Tower, 183 Electric Road, North Point, in Hong Kong.
At the meeting, Leong Ting Kwok David and Mok Mun Lan Linda, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
PIER INT'L: Members' Final Meeting Set for March 1
--------------------------------------------------
Members of Pier International Limited will hold their final
meeting on March 1, 2011, at 11:00 a.m., at 7th Floor, Alexandra
House, 18 Chater Road, Central, in Hong Kong.
At the meeting, Philip Brendan Gilligan, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
REDCHIP INT'L: Members' and Creditors' Meetings Set for Feb. 11
---------------------------------------------------------------
Members and creditors of Redchip International Limited will hold
their annual meetings on February 11, 2011, at 2:00 p.m., and
2:30 p.m., respectively at 29/F, Caroline Centre, Lee Gardens Two,
28 Yun Ping Road, in Hong Hong.
At the meeting, Osman Mohammed Arab, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
SELCO SALVAGE: Members' and Creditors' Meetings Set for Feb. 18
---------------------------------------------------------------
Members and creditors of Selco Salvage Limited will hold their
annual meetings on February 18, 2011, at 10:00 a.m., and
11:00 a.m., respectively at 22nd Floor, Prince's Building,
Central, in Hong Kong.
At the meeting, Rainier Lam, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
SELECT FOOD: Annual Meetings Slated for February 11
---------------------------------------------------
Contributories and creditors of Select Food Limited will hold
their annual meetings on February 11, 2011, at 2:30 p.m., and
3:00 p.m., respectively at Suite A, 12/F., Ritz Plaza, 122 Austin
Road, Tsimshatsui, in Kowloon.
At the meeting, Pang Wai Kui, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
SELPRO TACTICAL: Court to Hear Wind-Up Petition on February 23
--------------------------------------------------------------
A petition to wind up the operations of Selpro Tactical Limited
will be heard before the High Court of Hong Kong on February 23,
2011, at 9:30 a.m.
Ma Wing Hong filed the petition against the company.
The Petitioner's Solicitors are:
Deannie Yew & Associates
Unit 1501-2, 15th Floor
Hang Seng Mongkok Building
677 Nathan Road
Mongkok, Kowloon
Hong Kong
STAR CHAMPION: Court to Hear Wind-Up Petition on February 16
------------------------------------------------------------
A petition to wind up the operations of Star Champion Holdings
Limited will be heard before the High Court of Hong Kong on
February 16, 2011, at 9:30 a.m.
Wise Sun Limited filed the petition against the company.
The Petitioner's Solicitors are:
Chong, Fu & Co
Room 1601-1603
China Insurance Group Building
141 Des Voeux Road
Central, Hong Kong
SUNWELL METALS: Members' & Creditors' Meeting Set for March 1
-------------------------------------------------------------
Members and creditors of Sunwell Metals Limited will hold their
final meetings on March 1, 2011, at 2:30 p.m., and 3:00 p.m.,
respectively at 29th Floor, Caroline Centre, Lee Gardens Two, 28
Yun Ping Road, in Hong Kong.
At the meeting, Osman Mohammed Arab, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
SURE BRIGHT: Creditors' Proofs of Debt Due February 18
------------------------------------------------------
Creditors of Sure Bright Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Feb. 18,
2011, to be included in the company's dividend distribution.
The company's liquidator is:
Mat Ng
c/o John Lees Associates
20/F, Henley Building
5 Queen's Road
Central, Hong Kong
TOP BLOOM: Court to Hear Wind-Up Petition on February 23
--------------------------------------------------------
A petition to wind up the operations of Top Bloom Limited will be
heard before the High Court of Hong Kong on February 23, 2011, at
9:30 a.m.
Lau Yeh Ming James filed the petition against the company.
UNION BRIDGE: Court to Hear Wind-Up Petition on February 23
-----------------------------------------------------------
A petition to wind up the operations of Union Bridge International
Limited will be heard before the High Court of Hong Kong on
February 23, 2011, at 9:30 a.m.
Rutronik UK Limited filed the petition against the company.
The Petitioner's Solicitors are:
Clyde & Co
18th Floor, CITIC Tower
1 Tim Mei Avenue
Central, Hong Kong
UNIROSS BATTERIES: Creditors to Get 3% Recovery on Claims
---------------------------------------------------------
Uniross Batteries (HK) Limited, which is in liquidation, will
declare the first interim ordinary dividend to its creditors on
February 25, 2011.
The company will pay 3% for first interim ordinary claims.
The company's liquidator is:
Yuen Tsz Chun Frank
5th Floor, Ho Lee Commercial Building
38-77 D'Aguilar Street
Central, Hong Kong
WELL FETCH: Placed Under Voluntary Wind-Up Proceedings
------------------------------------------------------
At an extraordinary general meeting held on January 17, 2011,
creditors of Well Fetch Garment Limited resolved to voluntarily
wind up the company's operations.
The company's liquidator is:
Law Yui Lun
Room 502, 5/F
Prosperous Building
48-52 Des Voeux Road
Central, Hong Kong
WINSHAN CONSTRUCTION: Annual Meetings Set for February 28
---------------------------------------------------------
Members and creditors of Winshan Construction Limited will hold
their annual meetings on February 28, 2011, at 11:00 a.m., and
11:30 a.m., respectively at 62/F, One Island East, 18 Westlands
Road, Island East, in Hong Kong.
At the meeting, Stephen Liu Yiu Keung, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
=========
I N D I A
=========
ALCOB SYSTEMS: CRISIL Assigns 'BB' Rating to INR15MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Alcob Systems Pvt Ltd (Alcob; part of the ASPL
group).
Facilities Ratings
---------- -------
INR65.00 Million Cash Credit BB/ Stable (Assigned)
INR15.00 Million Term Loan BB/ Stable (Assigned)
INR80.00 Million Bank Guarantee P4+ (Assigned)
INR35.00 Million Letter of Credit P4+ (Assigned)
The rating reflects expectations of marginal deterioration in ASPL
group's moderate financial risk profile, marked by small net
worth, low gearing, and moderate debt protection metrics, on
account of its large, debt-funded capital expenditure plans. The
rating also reflects the group's large working capital
requirements, small scale of operations, its susceptibility to
volatility in raw material prices, and its exposure to
fluctuations in demand from end-user industry. These weaknesses
are partially offset by the extensive experience of the ASPL
group's promoters and established customer relationships.
CRISIL has consolidated the business and financial risk profiles
of Alcob and Sai Fabrication (Sai), together referred to as the
ASPL group. This is because the two entities are in the same line
of business, under common management, and have significant
business inter-linkages. Alcob subcontracts all its labor work to
Sai, which derives all its revenues from Alcob. Over the medium
term, Sai's operations are expected to be wound up and transferred
to Alcob.
Outlook: Stable
CRISIL believes the ASPL group will remain a small player in the
fa‡ade engineering industry over the medium term. Its financial
risk profile will continue to be constrained by its small cash
accruals and large working capital requirements. The outlook may
be revised to 'Positive' in case the group significantly improves
its scale of operations and operating margin while maintaining its
capital structure. Conversely, the outlook may be revised to
'Negative' in case of substantial deterioration in the company's
liquidity due to a stretch in its receivables collection cycle, or
in case of deterioration in the operating margin.
About the Group
Promoted by Mr. R Badrinarayan, Alcob was established in 2003 as a
proprietor concern, and reconstituted as a private limited company
in 2006. It undertakes projects for exterior fa‡ade work on
buildings. It designs and installs the glass exteriors, aluminium
glazing systems, curtain walling, canopies, aluminium composite
cladding, and skylines. Until 2008-09 (refers to financial year,
April 1 to March 31), it only undertook contracts for commercial
buildings. However, in 2009-10, after becoming an approved
subcontractor for Airport Authority of India projects, the company
has also started to bid for airport projects. Sai, until 2009-10,
was a subcontractor for Alcob. However, all of Sai's operations
are now gradually being reduced and transferred to Alcob.
The ASPL group reported a profit after tax (PAT) of INR8.7 million
on net sales of INR283.8 million for 2009-10, as against a PAT of
INR7.2 million on net sales of INR220.0 million for 2008-09.
ANC ENTERPRISES: CRISIL Places 'D' Rating on INR15.2MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of ANC
Enterprises, part of the ANC group.
Facilities Ratings
---------- -------
INR40.00 Million Cash Credit D (Assigned)
INR6.00 Million Standby Line D (Assigned)
of Credit
INR15.20 Million Term Loan D (Assigned)
The rating reflects delays by the ANC group in servicing its debt;
the delays have been caused by the group's weak liquidity.
The ANC group has a weak financial risk profile, marked by a small
net worth, a high gearing, and moderate debt protection metrics.
The rating also reflects the ANC group's large working capital
requirements, small scale of operations, and high revenue
concentration in the cyclical commercial vehicles industry. These
rating weaknesses are partially offset by the benefits that the
ANC group derives from its promoters' extensive industry
experience, established relationship with Tata Motors Ltd, strong
revenue growth, and improvement in operating efficiencies.
For arriving at the rating, CRISIL has combined the financial risk
profiles of ANC and Sango Auto Forge Pvt Ltd. This is because
these entities, together referred to as the ANC group, are in a
similar line of business, have significant operational and
financial linkages with each other, as SAFPL derives most of its
revenues from ANC, and have a common ownership.
About the Group
ANC, part of the ANC group, is engaged in machining of components
used in the automobile industry. The firm operates two machining
units at Bhosari in Pune (Maharashtra), with combined machining
capacity of 600 tonnes per month (tpm). ANC has been solely
supplying machined components to TML and its vendors. As timely
availability of forged input components was a critical issue that
hampered growth of ANC, the group decided to establish its own
captive forging unit, SAFPL (incorporated in 2007). In 2009, when
SAFPL commenced commercial operations, the ANC group received in-
principle approval from TML for purchase of only non-critical
components from SAFPL. However, in November 2010, TML provided
approval to SAFPL for supply of both critical and non-critical
components. SAFPL has forging capacity of 500 tpm and currently
meets the entire forged components requirement of ANC.
The ANC group reported a profit after tax (PAT) of INR7.94 million
on net sales of INR164.78 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR3.09 million on
net sales of INR78.07 million for 2008-09.
BHALARIA METAL: CRISIL Rates INR50 Million LT Bank Loan at 'BB+'
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Bhalaria Metal Forming (BMF; part of the Bhalaria
group).
Facilities Ratings
---------- -------
INR50.0 Million Proposed LT BB+/Stable (Assigned)
Bank Loan Facility
INR50.0 Million Packing Credit P4+(Assigned)
The ratings reflect the Bhalaria group's constrained liquidity due
to the large working capital requirements; and its average
financial risk profile, marked by small net worth, high gearing,
and average debt protection metrics. These weaknesses are
partially offset by the company's established track record in the
stainless steel utensils and cutlery sector along with its
established relationships with its customers.
For arriving at its ratings, CRISIL has combined the financial and
business risk profiles of BMF and Bharat Metal Craft Pvt Limited,
together referred to as the Bhalaria group. This is because BMF
and BMC are engaged in same line of business, have same promoters
along with common management, and also have operational and
financial linkages.
Outlook: Stable
CRISIL believes that the BMF will maintain its credit risk
profile, backed by Bhalaria group's established track record in
the stainless steel utensils and cutlery industry. The outlook
may be revised to 'Positive' in case of improvement in liquidity
of the group through better working capital management or through
infusion of significant funds by the promoters in form of equity
in the group. Conversely, the outlook may be revised to
'Negative' in case the company's profitability declines
significantly on account of increase in raw material prices or if
the group undertakes any additional debt-funded capex programme,
leading to deterioration in its financial risk profile.
About the Group
Incorporated in 1994 and promoted by Mr. Hitendra Bhalaria and
Mr. Janak Bhalaria, BMC has its manufacturing facilities in Thane
(Maharashtra), while BMF was established as a partnership concern
in 2003 in a special economic zone in Surat (Gujarat) with Mr.
Hitendra Bhalaria and Mr. Janak Bhalaria as partners. The Bhalaria
group manufactures stainless steel products for restaurants
(contributes around 85 per cent to the group's revenues) and
household kitchens (around 15 per cent).
Initially, the Bhalaria group catered to the domestic market but
later switched to the export market. Over the 10 years ended 2009-
10 (refers to financial year, April 1 to March 31), the group
realized its entire sales from exports. During the current year,
however, the group derived 5 per cent of its sales from the
domestic market. BMF sources all its raw material requirements
(unpolished utensils) from BMC. BMC produces both polished and
unpolished utensils. The Bhalaria group produces stainless steel
utensils which are used in bars, tableware, cooking, beverages and
bathroom accessory. Around 3 per cent of the group's total
revenues are derived from aluminium and brass utensils.
The Bhalaria group is presently undertaking a capex programme to
increase its installed capacities by 300 tonnes per month (tpm)
(existing capacity is around 350 tpm). The increased production
facilities are being installed at a new plant in Umbergaon
(Gujarat). The total cost of the project is INR141.6 million,
which is being funded by a term loan of INR100 million and the
rest by cash accruals and/or unsecured loans from promoters. The
project is expected to be completed by March 2011.
BMF reported a profit after tax (PAT) of INR23.9 million on net
sales of INR184 million for 2009-10, as against a PAT of INR53.5
million on net sales of INR184 million for 2008-09.
CHANDRASHEKHAR EXPORTS: CRISIL Puts 'P4+' Rating on INR45MM Credit
------------------------------------------------------------------
CRISIL has assigned its 'P4+' rating to the short-term bank
facilities of Chandrashekhar Exports Pvt Ltd.
Facilities Ratings
---------- -------
INR45.00 Million Post Shipment Credit P4+ (Assigned)
INR105.00 Million Packing Credit P4+ (Assigned)
The rating reflects susceptibility of CEPL's revenues and earnings
to regulatory and geopolitical risks relating to exports of
agricultural commodities. These weaknesses are partially offset
by its above-average financial risk profile, marked by moderate
gearing and debt protection metrics, and the extensive experience
of its promoters in the agricultural commodities export business.
CEPL exports a variety of agricultural commodities and animal
feeds such as maize, soybean De Oiled Cake, and rapeseed DOC. It
is promoted by the Banachhode family of Kolhapur (Maharashtra),
which has interests in the farming, dairy, and oil mills and
refineries businesses as well. The company mainly exports its
goods to South East Asian countries such as Taiwan, Singapore,
Indonesia, South Korea, and Sri Lanka.
CEPL reported a profit after tax (PAT) of INR6.3 million on net
sales of INR1255.4 million for 2009-10 (refers to financial year,
April 1 to March 31) as against a PAT of INR11.6 million on net
sales of INR1739.6 million for 2008-09.
ERIS LIFESCIENCES: CRISIL Rates INR150 Mil. Cash Credit at 'BB+'
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to Eris Lifesciences
Pvt Ltd's cash credit facility.
Facilities Ratings
---------- -------
INR150 Million Cash Credit BB+/Stable (Assigned)
The rating reflects ELPL's above-average financial risk profile,
marked by comfortable debt protection measures, wide customer
base, and established distribution network. These rating strengths
are partially offset by ELPL's exposure to risks related to short
track record of operations in the domestic formulation industry,
and limited financial flexibility due to average size of net
worth.
Outlook: Stable
CRISIL believes that EFPL will continue to benefit from its
established distribution network and will generate healthy cash
accruals, over the medium term. The outlook may be revised to
'Positive' if EFPL's revenue grows at higher than expected rate
with improved profitability, while maintaining its capital
structure. Conversely, the outlook may be revised to 'Negative'
if the company contracts any large debt to fund its capital
expenditure plan, thus deteriorating its debt protection metrics
or its capital structure.
About Eris Lifesciences
ELPL, set up by Mr. Amit Bakshi, markets and distributes
pharmaceutical drugs such as tablets, syrups, and injections under
the ethical/prescription drugs segment. The company provides
contract manufacturers with formulations and purchase orders for
manufacturing drugs. ELPL deals with 13 manufacturers to
outsource the contracts of manufacturing of the products on a
regular basis. The company tests the products in-house and also
gets the drugs checked through a third party, post which the
company procures the drugs and markets them under its own
registered brand names. The company has over 70 registered brand
names.
ELPL reported a profit after tax (PAT) of INR53.2 million on net
sales of INR955.5 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR16.7 million on net
sales of INR355.7 million for 2008-09.
EVERGREEN VENEERS: CRISIL Reaffirms 'BB-' Cash Credit Rating
------------------------------------------------------------
CRISIL's ratings on the bank facilities of Evergreen Veneers Pvt
Ltd continue to reflect EVPL's small scale of operations in the
intensely competitive plywood and veneer industry, large working
capital requirements, and exposure to risks related to
fluctuations in foreign exchange (forex) rates. These rating
weaknesses are, however, partially offset by EVPL's moderate
financial risk profile marked by marked by small net worth and
moderate debt protection metrics, and the benefits that the
company derives from its promoters' industry experience.
Facilities Ratings
---------- -------
INR25.00 Million Cash Credit BB-/Stable (Reaffirmed)
INR150.00 Million Letter of Credit P4+ (Reaffirmed)
INR0.50 Million Bank Guarantee P4+ (Reaffirmed)
Outlook: Stable
CRISIL believes that EVPL will continue to benefit over the medium
term from its established presence in the plywood and veneer
business. The outlook may be revised to 'Positive' if the
company's financial risk profile improves significantly, supported
by a sustainable scale-up in operations and margins. Conversely,
the outlook may be revised to 'Negative' if EVPL undertakes a
large, debt-funded capital expenditure.
Update
For 2009-10 (refers to financial year, April 1 to March 31), EVPL
reported a revenue growth of 14 per cent, which was marginally
above CRISIL's expectations. The growth in revenues was mainly
because of the revival in demand for veneers along with the
addition of peeling machines and mobile cranes by the company
during the year. EVPL's operating margin, though low, improved to
2.4 per cent in 2009-10 from 1.4 per cent in 2008-09 mainly
because of the favorable movement in foreign exchange rates. Since
the company imports most of its raw materials on 180-day letters
of credit, which were largely un-hedged, the company benefited
from the appreciating Indian rupee, which resulted in lower cost
of raw materials. CRISIL believes that EVPL's margins will
continue to remain susceptible to volatility in forex rates. The
financial risk profile remains moderate, marked by comfortable
debt protection metrics, but constrained by a small net worth.
The company's gearing deteriorated marginally because of higher
reliance on short-term working capital facilities, and term loans
contracted to fund the purchase of machineries, leading to higher
interest costs. EVPL's scale of operations continues to remain
small and working capital intensive leading to high gross current
assets.
About Evergreen Veneers
EVPL, set up in 1992 by Mr. Lakshmichand Garg, was acquired by Mr.
Ashok Kumar Agarwal and Mr. Vijay Gupta in 2001. Based at
Vishakhapatnam (Andhra Pradesh), the company manufactures veneers
and plywood. EVPL's entire timber requirement is met by imports
from Malaysia, Myanmar, and New Zealand. The company sells veneer
to plywood manufacturers in South India. It sells plywood under
its own brands, Du'k Ply, Monteck Ply, Imax Ply, Mount Ply.
EVPL reported profit after tax (PAT) of INR3.8 million on net
sales of INR439.3 million for 2009-10, against a reported PAT of
INR2.4 million on net sales of INR386.9 million for 2008-09.
GARDEN VALLEY: CRISIL Assigns 'P4+' Rating to INR10MM Standby LOC
-----------------------------------------------------------------
CRISIL has assigned its 'P4+' rating to the bank facilities of
Garden Valley Export Corporation (GVEC; part of the VPSAP group).
Facilities Ratings
---------- -------
INR25.00 Million Export Packing P4+ (Assigned)
Credit
INR10.00 Million Standby Line P4+ (Assigned)
of Credit
INR25.00 Million Foreign Bills P4+ (Assigned)
Discounting (Non-Letter of Credit)
INR1.00 Million Bank Guarantee P4+ (Assigned)
The rating reflects the VPSAP group's modest scale of operations,
and exposure to risks related to the commodity nature of its
products and to customer concentration in revenue profile. These
rating weaknesses are partially offset by the VPSAP group's above-
average financial risk profile, marked by healthy capital
structure and moderate debt protection metrics, and established
position in the spice trading market, backed by its promoters'
extensive industry experience and its healthy relationships with
its customers.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of Paprika Oleo's (India) Ltd, Indian
Chillies Trading Company Ltd, and GVEC, collectively referred to
as the VPSAP group. This is because these entities are in the same
line of business, under a common management, and have intra-group
operational linkages.
About the Group
The VPSAP (V.P.S.A stands for 'Verkaran', 'Perumal',
'Sankaralingam', 'Ayyemperumal; the last letter denoting
Paramasiva Nadar) group exports all kinds of chilli-based
products: stemless chillies, crushed and ground chillies, capsicum
and paprika oleoresins, pure capsaicin, and xantho red powder. The
VPSAP group is part of the Verkaran Perumal Sankaralingam
Ayyemperumal Paramasiva Nadar group. The VPSAP group has two
divisions: the spice grinding division, with an installed capacity
of 4000 tonnes per annum of crushed and ground chillies, and the
oleoresin unit, which exports capsicum and paprika oleoresins with
capacity of 15 tonnes per day (tpd). The group's promoter-
directors, Mr. A P Murugun, Mr. A P Krishnamurthy, Mr. A P
Vanniarajan, Mr. A P Rajaram, Mr.A P Jayaker, Mr A P Ganeshan, Mr.
A P Jaganathan, Mr A P K Senthilvel, Mr A P K Jushin, and Mr. A P
Raghunathan, have more than three decades of experience in the
same industry. The promoters also have interests in other
businesses such as textiles; they manage a textile unit named
Kaveri Yarn and Fabric Limited.
The VPSAP group reported a profit after tax (PAT) of INR8 million
on net sales of INR631 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR16 million on net
sales of INR646 million for 2008-09.
HINDUSTHAN MALLEABLES: CRISIL Puts 'BB' Rating on Cash Credit
-------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Hindusthan Malleables and Forgings Ltd.
Facilities Ratings
---------- -------
INR55.00 Million Cash Credit BB/Stable (Assigned)
INR5.00 Million Letter of Credit P4+ (Assigned)
The ratings reflect the susceptibility of HMFL's operating margin
to raw material price volatility, and its exposure to risks
related to customer concentration in its revenue profile and
intense competition and high fragmentation in the steel castings
industry. These weaknesses are partially offset by HMFL's
established industry presence and reputed client base.
Outlook: Stable
CRISIL believes that HMFL will maintain its financial risk profile
over the medium term, supported by the absence of large capital
expenditure (capex) plans for the period. CRISIL expects HMFL's
business risk profile to remain stable on the back of its
established presence and promoters' experience. The outlook may
be revised to 'Positive' if HMFL diversifies its customer base and
revenue profile, generates more-than-expected sales, and improves
its margins and accruals. Conversely, the outlook may be revised
to 'Negative' if the company's financial risk profile
deteriorates, most likely because of large, debt-funded capex, or
any significant decline in revenues and operating profitability.
About Hindusthan Malleables
HMFL was incorporated in 1958 by Mr. Prahlad Roy Jalan. In 2003,
it was acquired by Mr. Dilip Kumar Gopalka. However, the Jalan
family continues to hold a share of 21 per cent in the company.
HMFL, located in Dhanbad (Jharkhand), manufactures mild steel
castings, with a capacity of 550 tonnes per month (tpm). In
July 2010, the company began manufacturing manganese steel casting
at the same location; the unit has a production capacity of 500
tpm. About 50 per cent of HMFL's sales are to Tata Motors Ltd (AA-
/Stable/P1+).
HMFL group reported a loss of INR0.32 million on net sales of
INR361.5 million for 2009-10 (refers to financial year, April 1 to
March 31), against a PAT of INR2.5 million on net sales of
INR394.1 million for 2008-09.
GEMINI EQUIPMENT: CRISIL Rates INR150MM Rupee Term Loan at 'BB+'
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to Gemini Equipment
and Rentals Pvt Ltd's bank facility.
Facilities Ratings
---------- -------
INR150 Million Rupee Term Loan BB+/Stable (Assigned)
The rating reflects GERPL's large working capital requirements,
and susceptibility to economic cycles. These rating weaknesses
are partially offset by GERPL's above-average financial risk
profile, marked by comfortable debt protection metrics, low
gearing, and healthy net worth.
Outlook: Stable
CRISIL believes that GERPL will maintain its healthy operating
margins and steady revenue growth over the medium term, driven by
increased equipment fleet size and high utilization rates. The
outlook may be revised to 'Positive' if the company improves its
liquidity and achieves expected revenues and profitability.
Conversely, the outlook may be revised to 'Negative' if GERPL's
financial profile deteriorates significantly because of larger-
than-expected debt-funded capital expenditure or lower-than-
expected cash accruals.
GERPL was set up in 2007. It is a construction equipment rental
company based in Mumbai (Maharashtra), with regional offices in
seven cities across India. The company was promoted by Mr. Rajiv
Sethi, in association with two investing funds Berggruen Holdings
and Cycladic Capital. GERPL currently has about 280 pieces of
equipment and 689 employees, including operators and maintenance
staff.
GERPL reported a net loss of INR1.9 million on net sales of
INR283.4 million for 2009-10 (refers to financial year, April 1 to
March 31), against a net loss of INR17.3 million on net sales of
INR274.7 million for 2008-09.
GREEN WOODCRAFTS: CRISIL Assigns 'B+' Rating to INR4.9MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank
facilities of Green Woodcrafts Pvt Ltd.
Facilities Ratings
---------- -------
INR20.00 Million Cash Credit Limit B+ /Stable (Assigned)
INR4.90 Million Term Loan B+ /Stable (Assigned)
INR80.10 Million Letter of Credit P4 (Assigned)
The ratings reflect GWPL's highly working-capital-intensive
operations, driven by high debtor and inventory days, and small
scale of operations. These rating weaknesses are partially offset
by GWPL's moderate financial risk profile, marked by a low gearing
and moderate interest coverage ratio, and the benefits that the
company derives from its promoters experience in the plywood
business.
Outlook: Stable
CRISIL believes that GWPL's scale of operations will continue to
remain small over the medium term; the company's financial risk
profile will remain constrained during this period because of its
small net worth. The outlook may be revised to 'Positive' if GWPL
scales up its operations, driven by higher-than-expected growth in
revenues, or improves its financial risk profile, mainly driven by
fresh equity infusion by the promoters. Conversely, the outlook
may be revised to 'Negative' if GWPL's working capital cycle
lengthens, or revenues and profitability come under pressure.
About Green Woodcrafts
GWPL was promoted by the Khetawat family of Delhi in 1996. The
company began its operations by manufacturing commercial plywood,
but shifted to decorative plywood in 2004 as it is a comparatively
higher-margin segment. GWPL's facility is based in Rohtak
(Haryana); the company sells its product under the brand Flamingo.
GWPL reported a profit after tax (PAT) of INR2 million on net
sales of INR139 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR2 million on net sales
of INR123 million for 2008-09.
KAVERI YARNS: CRISIL Assigns 'BB' Rating to INR43MM LT Loan
-----------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Kaveri Yarns and Fabrics Limited.
Facilities Ratings
---------- -------
INR43.00 Million Long-Term Loan BB/Stable (Assigned)
INR34.40 Million Corporate Loan BB/Stable (Assigned)
INR70.00 Million Cash Credit BB/Stable (Assigned)
INR50.00 Million Letter of Credit P4+ (Assigned)
INR2.60 Million Bank Guarantee P4+ (Assigned)
The ratings reflect KYFL's below-average financial risk profile,
marked by a high gearing and weak capital structure, limited
revenue diversity, and exposure to risks related to volatility in
prices of raw material. These rating weaknesses are partially
offset by the benefits that KYFL derives from its promoters'
experience in the textiles industry, and its established regional
presence in the cotton yarn segment.
Outlook: Stable
CRISIL believes that KYFL will continue to benefit over the medium
term from its promoters' industry experience. The outlook may be
revised to 'Positive' if KYFL scales up its operations and
improves its capital structure, while maintaining its
profitability. Conversely, the outlook may be revised to
'Negative' if KYFL undertakes a larger-than-expected, debt-funded
capital expenditure programme, or reports decline in
profitability, leading to deterioration in its financial risk
profile.
About Kaveri Yarns
Set up in 1989, KYFL manufactures cotton yarn primarily in the
count range of 20s to 60s. Its facility in Virudhunagar (Tamil
Nadu) has 23,664 spindles and 640 rotors. The company's promoter-
director, Mr. A P Murugan, has been in similar lines of business
for the past three decades. KYFL's day-to-day operations are
managed by its director, Mr. A P M Pradeep. KYFL is part of the
VPSAP(V.P.S.A stands for 'Verkaran', 'Perumal',
'Sankaralingam','Ayyemperumal ; the last letter denoting
Paramasiva Nadar) group which is also engaged in trading of spices
primarily red chillies through its group entities namely Paprika
Oleo's (India) Limited, Indian Chillies Trading Company Ltd and
Garden Valley Export Corporation.
KYFL reported a profit after tax (PAT) of INR1 million on net
sales of INR400 million for 2009-10 (refers to financial year,
April 1 to March 31), against a net loss of INR7 million on net
sales of INR321 million for 2008-09.
KMG ROLLING: CRISIL Rates INR200.0 Million Cash Credit at 'B'
-------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the cash credit
facility of KMG Rolling Pvt Ltd.
Facilities Ratings
---------- -------
INR200.0 Million Cash Credit B/Stable (Assigned)
The rating reflects KMG's weak financial risk profile, marked by
low net worth and high gearing, working-capital-intensive nature
of operations, and the vulnerability of its operating margin to
fluctuations in input costs. These weaknesses are partially
offset by the significant experience of KMG's promoters in the
non-ferrous products business.
Outlook: Stable
CRISIL believes that KMG's financial risk profile, marked by small
net worth and high gearing, will remain constrained on account of
large incremental working capital requirement. The outlook may be
revised to 'Positive' in case of improvement in the company's
capital structure, driven by equity infusion, or if the company
prudently manages its incremental working capital requirements
amid growth in operating income. Conversely, the outlook may be
revised to 'Negative' in case of pressure on the company's
revenues or profitability, leading to smaller cash accruals, or in
case the company undertakes any debt-funded capital expenditure
programme, thereby weakening its capital structure.
About KMG Rolling
Incorporated in 2009 by the Goel family of Delhi, KMG manufactures
copper rods of 8 mm dimension. The company commenced its
operations in April 2010, with an installed capacity of 12,600
tonnes. The manufacturing facility, based in Bhiwadi (Rajasthan),
is currently managed by Mr. Anil Goel and his nephew Mr. Anshul
Goel. The company also carries out job work for local copper
ingot manufacturers in order to utilise its surplus capacity.
INDIAN CHILLIES: CRISIL Places 'BB+' Rating on INR6MM LT Loan
-------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Indian Chillies Trading Company Ltd (ICTCL; part of
the VPSAP group).
Facilities Ratings
---------- -------
INR6.00 Million Long Term Loan BB+/Stable (Assigned)
INR16.00 Million Export Packing Credit P4+ (Assigned)
INR4.00 Million Standby Line of Credit P4+ (Assigned)
INR20.00 Mil. Foreign Bills Discounting P4+ (Assigned)
(Non-Letter of Credit)
INR4.00 Million Letter of Credit P4+ (Assigned)
INR2.20 Million Credit Exposure Limit P4+ (Assigned)
The rating reflects the VPSAP group's modest scale of operations,
and exposure to risks related to the commodity nature of its
products and to customer concentration in revenue profile. These
rating weaknesses are partially offset by the VPSAP group's above-
average financial risk profile, marked by healthy capital
structure and moderate debt protection metrics, and established
position in the spice trading market, backed by its promoters'
extensive industry experience and its healthy relationships with
its customers.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of Paprika Oleo's (India) Ltd, ICTCL, and
Garden Valley Export Corporation, collectively referred to as the
VPSAP group. This is because these entities are in the same line
of business, under a common management, and have intra-group
operational linkages
Outlook: Stable
CRISIL believes that VPSAP group will continue to benefit over the
medium term from its established customer relationships and the
extensive industry experience of its promoters. The outlook may
be revised to 'Positive' if the VPSAP group increases its scale of
operations, by improving its sales and diversifying its customer
base and product profile, while maintaining its operating margin.
Conversely, the outlook may be revised to 'Negative' if the
group's profitability declines, or if it undertakes a larger-than-
expected debt-funded capital expenditure programme, in case of
further investments by a group entity in another group entity, or
in case one group entity provides financial support to another.
About the Group
The VPSAP (V.P.S.A stands for 'Verkaran', 'Perumal',
'Sankaralingam', 'Ayyemperumal; the last letter denoting
Paramasiva Nadar) group exports all kinds of chilli-based
products: stemless chillies, crushed and ground chillies, capsicum
and paprika oleoresins, pure capsaicin, and xantho red powder. The
VPSAP group is part of the Verkaran Perumal Sankaralingam
Ayyemperumal Paramasiva Nadar group. The VPSAP group has two
divisions: the spice grinding division, with an installed capacity
of 4000 tonnes per annum of crushed and ground chillies, and the
oleoresin unit, which exports capsicum and paprika oleoresins with
capacity of 15 tonnes per day (tpd). The group's promoter-
directors, Mr. A P Murugun, Mr. A P Krishnamurthy, Mr. A P
Vanniarajan, Mr. A P Rajaram, Mr.A P Jayaker, Mr A P Ganeshan, Mr.
A P Jaganathan, Mr A P K Senthilvel, Mr A P K Jushin, and Mr. A P
Raghunathan, have more than three decades of experience in the
same industry. The promoters also have interests in other
businesses such as textiles; they manage a textile unit named
Kaveri Yarn and Fabric Limited.
The VPSAP group reported a profit after tax (PAT) of INR8 million
on net sales of INR631 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR16 million on net
sales of INR646 million for 2008-09.
RANKAS TEXFAB: CRISIL Places 'BB-' Rating on INR42.3MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Rankas Texfab Pvt Ltd.
Facilities Ratings
---------- -------
INR20.0 Million Cash Credit BB-/Stable (Assigned)
INR42.3 Million Term Loan BB-/Stable (Assigned)
INR95.0 Million Packing Credit P4+ (Assigned)
& Foreign Bill Discounting
INR2.0 Million Bank Guarantee P4+ (Assigned)
INR2.0 Million Letter of Credit P4+ (Assigned)
The ratings reflect Rankas's small scale of operations in the
intensely competitive textile industry, and weak financial risk
profile, marked by high gearing, weak debt protection metrics, and
small net worth. These rating weaknesses are partially offset by
the established track record of Rankas's promoters in the textile
industry.
Outlook: Stable
CRISIL believes that Rankas will benefit from its improving
operating margin over the medium term. However, its financial risk
profile is expected to remain constrained by high gearing and weak
debt protection metrics in the near term. The outlook may be
revised to 'Positive' if the company's financial risk profile
improves because of significant improvement in operating margin or
equity infusion. Conversely, the outlook may be revised to
'Negative' if larger-than-expected debt-funded capital expenditure
leads to higher gearing and debt protection metrics or lower-than-
expected operating margins result in weakening cash accruals over
the medium term.
About Rankas Texfab
Incorporated in 1994, Rankas (formerly Bhairavnath Industries Pvt
Ltd, name changed in September 2009) trades and processes,
including dyeing, printing and stitching, grey fabrics (cotton and
polyester). Rankas also manufactures dress material, African/wax
prints, curtains, scarves, table linen, and bed linen at its plant
in Ahmedabad (Gujarat). Rankas has received "Oeko-Tex"
certification, which is a must for exports to Europe.
Rankas reported a profit after tax (PAT) of INR7.0 million on net
sales of INR462.0 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR5.99 million on net
sales of INR451.3 million for 2008-09.
SHIVA POLYTUBES: CRISIL Assigns 'BB' Rating to INR35MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Shiva Polytubes Pvt Ltd.
Facilities Ratings
---------- -------
INR35 Million Cash Credit BB/Stable (Assigned)
INR8.2 Million Standby Line of BB/Stable (Assigned)
Credit
INR33.6 Million Rupee Term Loan BB/Stable (Assigned)
INR2.2 Million Proposed LT Bank BB/Stable (Assigned)
Loan Facility
INR10 Million Letter of Credit P4+ (Assigned)
INR10 Million Bank Guarantee P4+ (Assigned)
The ratings reflect SPPL's small net worth and modest scale of
operations, and exposure to risks related to high revenue
concentration. These weaknesses are partially offset by SPPL's
established distribution network, and above-average financial risk
profile marked by comfortable gearing and moderate debt protection
metrics.
Outlook: Stable
CRISIL believes that SPPL will continue to benefit over the medium
term from its established distribution network and satisfactory
cash accruals. The outlook may be revised to 'Positive' if the
company achieves greater-than-expected revenue, while maintaining
its profitability and capital structure. Conversely, the outlook
may be revised to 'Negative' if the company's debt protection
measures, or capital structure, deteriorate in case of any large,
debt-funded capital expenditure.
About Shiva Polytubes
Set up in 1994 by Mr. Ramesh Chandra Gupta, Patna-based SPPL
manufactures polyvinyl chloride based products. About 50 per cent
of the products are used for irrigation, while the balance is used
for plumbing in the construction sector. The company's
manufacturing unit has installed capacity of 11,000 tonnes per
annum. SPPL sells its products under the brand names Trishul,
Agni, and Shiva in various states in central and eastern India
through West Bengal, Assam, Bihar, Jharkhand, Orissa, and Uttar
Pradesh.
SPPL reported a profit after tax (PAT) of INR5 million on net
sales of INR227 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR5 million on net sales
of INR194 million for 2008-09.
=================
I N D O N E S I A
=================
BAKRIE LIFE: Fails to Pay Interest on Clients' Funds
----------------------------------------------------
The Jakarta Post reports that the management of Bakrie Life has
again failed to pay interest on its clients' funds, despite
repeated promises that it would pay the arrears.
The Post, citing a report from kontan.co.id, says the company was
supposed to make the payment on Monday to investors in its Diamond
Investa scheme, but until late in the afternoon that day, the
company had not made the payments.
The Post relates that Bakrie Life had earlier repeatedly told the
Capital Market and Financial Institution Supervisory Agency
(Bapepam-LK) it would pay the interest on the clients' funds,
which had been delayed several times.
According to the Post, Bakrie Life president director Timoer
Sutanto said last weekend that the company was ready to make the
payment, but they could not transfer it on Friday because the bank
had already closed. He promised to make the transfer on Monday,
the Post adds.
As reported in the Troubled Company Reporter-Asia Pacific on
September 24, 2009, The Jakarta Post said the Capital Market and
Financial Institutions Supervisory Agency (Bapepam-LK) granted
Bakrie Life the one-month period it had requested to settle a
dispute with customers.
The supervisory body launched an investigation into Bakrie Life
after the company's customers complained to Bapepam-LK they had
not been able to cash in their investment funds since late last
year. According to the Post, the funds are invested in an
investment product called Diamond Investa, in which 80% of the
fund is linked to the performance of shares in the capital market.
Bakrie Life is one of the Bakrie Group's units that specialize in
the life insurance sector. It was established in 1996 in Jakarta,
Indonesia. BNBR owns Bakrie Life through its subsidiary, Bakrie
Capital, which controls 91% of ownership in the insurance company,
the remaining 9% being owned by the company's cooperative network.
STAR ENERGY: Fitch Affirms Issuer Default Rating at 'B+'
--------------------------------------------------------
Fitch Ratings has affirmed Star Energy Geothermal (Wayang Windu)
Limited's Long-term foreign currency Issuer Default Rating at
'B+'. The Outlook remains Stable. At the same time, the agency
has also affirmed the existing US$350 million senior secured notes
due in 2015 at 'B+' with a recovery rating of 'RR4'.
The affirmations reflect SEG's strong track record of reliable
operating performance, its base-load generation status and the
long-term 'take or pay' energy sales contract which underpins the
company's stable and predictable recurring cash flows.
At the same time, the ratings remain constrained by these: the
company's exposure to a single-site operation, the inherent risks
of a geothermal operation in an active seismic area, and the
concentration risk of a sole electricity off-taker, PT Perusahaan
Listrik Negara. Fitch continues to note that PLN has a weak
financial profile resulting from its inability to sell electricity
at an economical level. However, considering PLN's strategic
importance and strong linkages with the government, the agency
believes the Indonesian government will continue to provide
financial support to PLN in the event it is required.
The ratings are also constrained by the significant capex needs
for the construction of the third unit geothermal power plant with
127 megawatt capacity, which is estimated at around US$277 million
of which nearly US$20 million had been spent by the end of 2010.
The agency believes this project will delay SEG's ability to
deleverage. The construction of Unit 3 was originally expected to
be completed by mid-2013; however, this has been held up by issues
over land permits which have taken longer than expected to
resolve. Unit 3 is now expected to commence operation around
mid-2014. Fitch believes that the impact from the delays does not
warrant an immediate negative rating action, which lends support
to SEG's Stable Outlook.
A negative rating action may occur if the construction of Unit 3
encounters substantial delays or cost overruns resulting in these:
higher-than-expected net debt (excluding subordinated shareholder
loans) to EBITDAR being sustained above 3.75x and funds from
operations interest coverage being sustained below 2.0x. Given
that the rating constraints are not factors that can be addressed
in the short tem, Fitch does not envisage a positive rating action
in the medium term.
The agency has no immediate concern regarding SEG's liquidity as
it has minimal debt maturing up until 2015. At end
September 2010, SEG's cash reserve balance stood at US$102.9
million against total debt of US$367.7 million. The total debt
comprises US$350 million of senior notes maturing in 2015, with
the balance coming from the existing interest rate swap derivative
facility.
SEG is one of the largest geothermal electricity producers in
Indonesia, with total installed capacity of 227 MW. It has
exclusive rights to exploit and utilize geothermal resources at
the Wayang Windu contract area located in the highlands of West
Java. In the nine months ending September 2010, SEG's revenue and
EBITDAR were US$85.8 million and US$68.7 million, respectively.
=========
J A P A N
=========
HELIUM CAPITAL: S&P Withdraws 'CCC-' Rating on Series 79 Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'CCC- (sf)' rating
on Helium Capital Ltd.'s series 79 US$20 million limited recourse
secured floating rate credit-linked notes due 2012. The rating
withdrawal follows the arranger's notification to us that the
notes have been repurchased by the issuer and cancelled on
Jan. 31, 2011.
Rating Withdrawn
Helium Capital Ltd.
Series 79 US$20 million limited recourse secured
floating rate credit-linked notes due 2012
To From Issue amount
-- ---- ------------
NR CCC- (sf) US$20 mil.
The transaction's closing date was July 17, 2007.
N-SLOT OPUS: S&P Affirms Ratings on Two Classes of Certificates
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on the
class A and B trust certificates and asset-backed loans
issued/extended under the N-SLOT Opus 5 Trust Certificate
transaction, and removed them from CreditWatch with negative
implications. The ratings, which were initially placed on
CreditWatch with negative implications on Oct. 8, 2010, were then
lowered and kept on CreditWatch negative on Nov. 2, 2010.
The trust certificates and ABLs issued/extended under this
transaction are still backed by two nonrecourse loans to two
borrowers. The maturity date of the nonrecourse loans was
extended to December 2012 from December 2010, and the loans have
entered an effective tail period. As such, collection is expected
to proceed, primarily through the sales of the related collateral
properties, in accordance with the transaction agreement.
S&P placed the ratings on the class A and B trust certificates and
ABLs on CreditWatch with negative implications on Oct. 8, 2010.
Following the CreditWatch placements, S&P lowered the ratings and
maintained them on CreditWatch negative on Nov. 2, 2010.
This time, S&P has reexamined the performance of the related
collateral properties using the latest information that S&P has
received. Through its review, S&P has confirmed that the
performance of the properties in question remains in line with the
levels that S&P assumed as of Nov. 2, 2010. Accordingly, S&P has
maintained its assumption with regard to the likely collection
amount from the properties that S&P revised downward in November
2010. As such, S&P still assume the combined value of the
properties to be about 56% of its initial underwriting value.
Although S&P affirmed its ratings on the class A and B trust
certificates and ABLs, and resolved the negative CreditWatch
placements, the ratings may undergo further downward pressure
depending on the progress of collection from the aforementioned
properties, taking into account the type of the underlying
properties.
N-SLOT Opus 5 is a CMBS transaction, which was initially secured
by two nonrecourse loans to two borrowers. The underlying loans
were originally backed by two real estate properties. Nomura
Securities Co. Ltd. arranged this transaction.
The ratings address the full payment of interest and the ultimate
repayment of principal for the trust certificates and the ABLs by
the legal final maturity date in December 2012.
Ratings Affirmed And Removed From Creditwatch Negative
N-SLOT Opus 5 Trust Certificate
JPY4.65 billion trust certificates and ABLs due December 2012
Class To From Initial issue/Loan amount
----- -- ---- -------------------------
A BB (sf) BB (sf)/Watch Neg JPY1.8 billion
A ABL BB (sf) BB (sf)/Watch Neg JPY1.7 billion
B B (sf) B (sf)/Watch Neg JPY0.55 billion
B ABL B (sf) B (sf)/Watch Neg JPY0.6 billion
===============
M A L A Y S I A
===============
TRACOMA HOLDINGS: Defaults on MYR3.7 Million Bonds Payment
----------------------------------------------------------
Pursuant to Practice Note No. 1/2009 of the Main Market Listing
Requirements of Bursa Malaysia Securities Berhad, Tracoma Holdings
Berhad disclosed that there is a default in payment to serve the
semi annual profit payment for the Islamic Bonds for Nominal Value
of MYR100 million under the Syariah Principle of Bai'Bithamin Ajil
pursuant to the Trust Deed dated November 29, 2004.
The Company is unable to serve the total outstanding profit
payment due and payable on January 28, 2011, amounting to
MYR3.7 million.
The Company is seeking to address the default by way of
formulating a restructuring plan to regularize its financial
condition and it is now in the midst of finalizing its proposed
restructuring plan to restructure its debts.
The Company has been granted a Restraining Order by the High Court
of Malaya, Shah Alam to finalize the proposed restructuring plan.
The Company said it is seeking legal advice whether such a default
does constitute an event of default under the agreements with
other financiers of which the Company had not defaulted.
About Tracoma Holdings
Tracoma Holdings Berhad is a Malaysia-based manufacturer and
supplier of automotive parts and components. Some of its wholly
owned subsidiary companies include Tracoma Sdn. Bhd., which is
engaged in manufacturing of automotive components; Malaysian Die-
Makers Sdn. Bhd., which is engaged in die making and servicing;
Trends Mecha Sdn. Bhd., which is engaged in parts and car design,
and Malaysian Farm Machinery Sdn. Bhd., which is engaged in
assembling and distributing agricultural tractors.
* * *
Tracoma Holdings Berhad has been classified as an Affected Listed
Issuer under Practice Note 17 of the Listing Requirements of Bursa
Malaysia Securities Berhad.
The company has triggered PN17's Paragraph 8.04 and Paragraph
2.1(a) as the consolidated shareholders' equity for the full
financial year ended December 31, 2009, is less than 25% of the
Company's issued and paid-up capital and such shareholders' equity
is less than MYR12 million.
LINEAR CORPORATION: Wind-Up Petition Served Against Unit
--------------------------------------------------------
Linear Corporation Berhad disclosed that a winding-up petition
through Shah Alam High Court Winding Up Petition No. MT-28-3-2011
was served against wholly owned subsidiary District Cooling
Systems Sdn. Bhd by Tunku Munawwir, Cbin & Solomon on
January 31, 2011.
The debts of MYR625,000, which has been disputed by DCS, owing to
the creditor is with regard to the creditor's invoice dated
April 30, 2010. The debts are unsecured and DCS will challenge
the debts in Court.
On December 10, 2010, DCS had received a Notice of Demand dated
December 10, 2010, pursuant to Section 218 of the Companies Act,
1965.
DCS is taking urgent steps to resolved the matter amicably and
negotiate a deferred payment plan that will be acceptable to the
creditor.
The winding-up petition has been fixed for hearing on April 12,
2011.
About Linear Corp.
Linear Corporation Berhad -- http://www.linear.com.my/-- engages
in investment holding and providing management services. The
Company operates in five business segments: investment holding,
manufacturing of cooling towers, engineering, which includes
designing and building district cooling system plants; trading of
cooling towers and solar panel, and others, which includes
providing water treatment services, trading of water tank,
composites and other compounds.
In June 2010, Linear Corp. was listed as a Practice Note 17
company based on the criteria set by the Bursa Malaysia Securities
Bhd as it had triggered Paragraph 2.1 (f) of the PN17 and was
unable to provide a solvency declaration to Bursa Securities.
SWEE JOO: Still in Talks With MTT Shipping, Lenders Over Plan
-------------------------------------------------------------
Swee Joo Berhad has issued an update on the status of the
Company's plan to regularize condition pursuant to
Practice Note 17 of Bursa Malaysia Securities Berhad.
"The Company and its advisers are in continuous discussion with
the shareholders of MTT Shipping Sdn Bhd and the lenders of SJB on
the terms of the proposed restructuring scheme to regularize SJB's
financial condition," Swee Joo said in a statement.
"The details of the proposed restructuring scheme will be
announced once the said scheme has been finalized and agreement in
principle of the lenders has been obtained," the Company said.
The Company has approximately seven months to submit its
Regularisation Plan to the relevant authorities for approval.
About Swee Joo
Swee Joo Berhad is a Malaysia-based investment holding company.
Through its subsidiaries, the Company operates in four segments:
Shipping services, which is involved in the provision of container
and other shipping services; Shipping agency, which is involved in
the provision of shipping agency services; Transportation and
haulage, which is involved in the provision of transportation and
haulage services, and Container repair and related services, which
is involved in the provision of handling, repairing and
maintaining containers. As of September 30, 2009, the Company
owns and operates 39 vessels, which comprises of 13 tugboats, 10
container vessels, seven barges, five dual-purpose vessels and
four chemical tankers.
On September 1, 2010, Swee Joo Berhad was listed as an Amended
Practice Note 17 Company based on the criteria set by the Bursa
Malaysia Securities Bhd. According to a disclosure statement with
the bourse, the Company triggered the PN17 listing as it is unable
to provide a solvency declaration to Bursa Malaysia.
SWEE JOO: Discloses More Than 10% Deviation in Q4 Results
---------------------------------------------------------
Swee Joo Berhad disclosed that there is a deviation of more than
10% between the profit after tax and minority interest stated in
the unaudited fourth quarter results ended September 30, 2010, and
the Company's audited financial statements for the financial year
ended September 30, 2010.
Swee Joo reported an audited net loss of MYR178.23 million against
an unaudited loss of MYR146.65 million reported earlier due to the
underprovision of taxation and under estimate of deferred tax.
The Company said that the deviation was due to additional
impairment on vessels due to higher discounting rates used in
assessing its value-in-use, impairment on vessels due to changes
in the vessels' usage subsequent to initial assessment and
impairment on work-in-progress related to the vessels under
construction due to probable inability to take delivery when
completed.
Meanwhile, Swee Joo Berhad also disclosed that the Company's
external auditor, PriceWaterhouseCoopers, has qualified the
financial statements for the financial year ended September 30,
2010.
The extract of the basis of qualification by the external auditors
is available for free at: http://ResearchArchives.com/t/s?72b7
About Swee Joo
Swee Joo Berhad is a Malaysia-based investment holding company.
Through its subsidiaries, the Company operates in four segments:
Shipping services, which is involved in the provision of container
and other shipping services; Shipping agency, which is involved in
the provision of shipping agency services; Transportation and
haulage, which is involved in the provision of transportation and
haulage services, and Container repair and related services, which
is involved in the provision of handling, repairing and
maintaining containers. As of September 30, 2009, the Company
owns and operates 39 vessels, which comprises of 13 tugboats, 10
container vessels, seven barges, five dual-purpose vessels and
four chemical tankers.
On September 1, 2010, Swee Joo Berhad was listed as an Amended
Practice Note 17 Company based on the criteria set by the Bursa
Malaysia Securities Bhd. According to a disclosure statement with
the bourse, the Company triggered the PN17 listing as it is unable
to provide a solvency declaration to Bursa Malaysia.
====================
N E W Z E A L A N D
====================
CRAFAR FARMS: Receivers Win Court Case Over Heifers Ownership
-------------------------------------------------------------
BusinessDay.co.nz reports that the receivers of Crafar Farms won a
High Court case, which will allow out-of-pocket Crafar financiers
to keep 4,000 heifers against an ownership challenge from Hawke's
Bay agri-finance company, Stock Co.
According to BusinessDay.co.nz, Judge Douglas White ruled that the
sale contravened the Crafar Farms group's duties under the
Personal Property Securities Act, and that the cows should remain
the property of the Crafar banking syndicate -- Westpac, Rabobank
and PGG Wrightson Finance.
BusinessDay.co.nz relates that KordaMentha's Michael Stiassny and
Brendon Gibson were appointed receivers of Crafar Farms in October
2009, with the four companies involved owing around NZ$200 million
on 20 farming properties.
BusinessDay.co.nz says Crafar company Plateau Farms sold the 4,000
heifers to Stock Co in August 2008 for NZ$3.6 million. Stock Co,
BusinessDay.co.nz relates, then leased the cattle back to Nugen
Farms -- a company owned by Allan Crafar's son Robert, but not
within the Crafar Farms group.
Money from the sale was used to fund the purchase of a NZ$7.85
million 195-hectare property at Norsewood by Nugen, before it too
went into receivership in December 2009.
BusinessDay.co.nz notes that the judge agreed with the argument of
KordaMentha lawyer Bruce Stewart QC, that the sale was "outside
the ordinary course of business" for Plateau.
"There was no evidence that the banks were aware of the sale, or
loan of the proceeds to Nugen . . . until November 18, 2008,"
BusinessDay.co.nz quoted Judge White as saying.
BusinessDay.co.nz relates Judge White said that Allan Crafar and
his lawyer Ian Blackman had acknowledged that "if the proposal had
been disclosed and consent sought it would not have been granted"
because the banks wanted any proceeds from livestock sales to be
used for debt reduction, not land purchases.
But Judge White said Stock Co was entitled to 652 cows which had
been the subject of a separate agreement between it and Nugen
Farms, BusinessDay.co.nz notes. These had been mixed with the
wider Crafar Farms stock.
The 4,000 heifers and their offspring will boost the assets of the
Crafar farms which are on the market, BusinessDay.co.nz adds.
About Crafar Farms
Crafar Farms, New Zealand's largest family owned dairy business,
runs about 20,000 milking cows, and carries about 10,000 of other
stock. The company employs 200 staff.
Crafar Farms was placed in receivership in October 2009, by its
lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson
Finance. The banks, owed around NZ$200 million, put KordaMentha
partners Michael Stiassny and Brendon Gibson in as receivers after
Crafar Farms breached covenants on its loans.
The New Zealand Herald said CraFarms' banks have been working with
the Ministry of Agriculture and Forestry, Federated Farmers and
Fonterra to ease the Crafars out of their business. This follows
multiple convictions for environmental lapses and animal neglect
in recent years and the revelation on September 28, 2009, from
interest.co.nz of animal neglect on one of its large farms in the
King Country near Benneydale.
PIKE RIVER: Police Owes Contractors Millions
--------------------------------------------
Shane Cowlishaw at The Dominion Post reports that contractors who
worked for weeks on the Pike River Coal Limited recovery effort
said police owe them tens of thousands of dollars. The report
relates that several contractors and companies have confirmed they
are still waiting for payment promised during the weeks after the
accident that cost the lives of 29 miners in November.
The contractors are also out of pocket for work done for Pike
River Coal before the blast, according to The Dominion Post.
In the heat of the emergency, Dominion Post recounts, contractors
rushed to the mine to help find their colleagues and friends, with
no thought or conversation about payment. But when hope was lost
after the second blast and it became apparent that the mine might
go into receivership, individual workers began asking police about
payment, the report relates.
The Dominion Post says that contractors claim they were told by
police that they would be reimbursed for the work and to send
invoices to headquarters. An unnamed police spokeswoman said more
than 1300 invoices had been received and were being processed, but
she refused to answer further questions, the report discloses.
The Dominion Post notes that Rem Markland, who helped with
building helicopter pads and co-ordinating other contractors, said
he was owed about NZ$20,000 from police, on top of NZ$32,000 from
Pike River Coal. The report relates that Oamaru-based mining
engineer and project manager Terry Moynihan said he left the site
in early December, owed NZ$10,000 by police and NZ$72,000 by Pike
River. A third contractor, who did not want to be named, said he
was still waiting on more than NZ$30,000 from police, the report
adds.
The Dominion Post discloses that public agencies such as police
took an average of 48.4 days to settle bills in the last quarter
of 2010, which was 4.5 days slower than the national average.
Pike River receiver John Fisk said it was possible creditors may
have to wait until after the commission of inquiry to find out if
they would receive money, the report adds.
About Pike River
Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is
a New Zealand-based coal mining company. The Company, along with
its subsidiaries, is primarily engaged in the exploration,
evaluation, development and production of coal. It operates a
coal mine that lies under the Paparoa Ranges.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
December 14, 2010, Bloomberg News said that Pike River Coal Ltd,
the New Zealand company that operates the coal mine where 29
miners died in a series of explosions in November 2010, has been
placed into receivership. Bloomberg related that Pike River
Chairman John Dow said its largest shareholder, NZ Oil & Gas,
appointed accountants PricewaterhouseCoopers as receivers. The
company owed NZ$80 million to secured creditors BNZ and New
Zealand Oil and Gas. Pike River also owed another estimated NZ$10
million to NZ$15 million to contractors, including some of the men
who lost their lives in the disaster.
* Grape Oversupply May Spur Trouble to Kiwi Wine Firms: Deloitte
----------------------------------------------------------------
A bumper grape harvest this year could drive more wine companies
into the hands of receivers, The New Zealand Herald reports citing
a Deloitte partner already involved in a number of receiverships
in the industry.
The Herald relates that Rabobank senior analyst in food and
agribusiness research Marc Soccio last week warned 2011 output
could be as large as 300,000 tonnes. That would be a 13% increase
on last year's harvest.
In December, the Herald notes, New Zealand Winegrowers chief
executive Philip Gregan said a harvest larger than 300,000 tonnes
would return the industry to the situation that followed the 2008
vintage, when a 285,000 tonne crop resulted in a 27-million litre
oversupply - eroding wine, land and grape prices.
At the same time, says the Herald, the onset of the global
financial crisis only deepened a dire situation.
According to the Herald, Deloitte's Paul Munro said the industry
was still recovering from the 2008 vintage, and it would take
between three and five years for things to return to normal.
"The production capacity is certainly there to produce that volume
and the season has been pretty reasonable up and down the country
in terms of allowing for those sorts of volumes. If growers
choose to harvest it -- the capacity or potential for oversupply
is there," the Herald quoted Mr. Munro as saying.
The Herald adds that New Zealand Winegrowers has advised growers
to limit the 2011 vintage to 265,000 tonnes through controlling
the harvest. Gregan said it was still too early to tell how large
this year's harvest - which takes place between March and April -
would be. A pre-vintage grape survey would be completed within
two to three weeks when more would be known about the situation,
the Herald notes.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE AIRLINES: DOLE Suspends Compulsory Retirement at PAL
---------------------------------------------------------------
BusinessWorld Online reports that the Department of Labor and
Employment has issued an order suspending Philippine Airlines'
move to retire senior flight attendants aged 55 years old.
BusinessWorld relates that Labor Undersecretary Hans Leo J. Cacdac
told PAL to set aside compulsory retirement notices issued to
eight flight pursers last Jan. 13.
According to BusinessWorld, the Labor department said PAL's move
was unwarranted considering it had assumed jurisdiction over the
labor dispute between the airline and the Flight Attendants' and
Stewards' Association of the Philippines or FASAP.
"[C]ontinuing acts may exacerbate the situation or give rise to
further contentious issues or increase the tension between [the
parties]," the department said, according to BusinessWorld.
BusinessWorld says Robert Anduiza, FASAP president, welcomed the
decision of the Labor department. "We are glad that the Labor
department heeded FASAP's urgent call to stop PAL from worsening
the labor tension between PAL and FASAP," BusinessWorld quoted
Mr. Anduiza as saying.
BusinessWorld notes that Jose S.L. Uybaretta, PAL vice-president
for human resources, said in the statement early last month the
flight pursers were informed of their compulsory retirement
shortly after Judge Oscar B. Pimentel of the Makati Regional Trial
Court Branch 147 lifted an injunction on the notices of compulsory
retirement.
"This is in accordance to the 2000-2005 Collective Bargaining
Agreement (CBA) pegging at 55 years old the retirement age of
female flight attendants hired before Nov. 22, 1996," Mr.
Uybaretta said last Jan. 13, BusinessWorld relates.
FASAP filed a motion seeking a Status Quo Order before the Labor
department last Jan. 14 to stop the forced retirements.
About Philippine Airlines
Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline. It was the first airline in
Asia and the oldest of those currently in operation. With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights. First taking off in
1941, the carrier has grown into a fleet of about 40 aircraft
(including five Boeing 747-400s) flying to more than 20 domestic
points and about 30 foreign destinations.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
April 21, 2010, the Manila Bulletin said that the Philippine
Airlines is to spin off its three non-core units as a last resort
to avoid bankruptcy. PAL will spin off its three non-core units:
inflight catering services; airport services, including ground
handling, cargo handling and ramp handling; and call center
reservations, the Manila Bulletin said. The PAL Employees Union
estimated that 2,000 to 4,000 employees assigned to those
departments could be retired. PAL said competition from overseas
carriers, slower global economic growth, and higher oil prices had
prompted the airline to slash its non-core businesses. The
carrier had approached several investors but failed to secure
financial help, and equity had dropped to a worrisome US$1.1
million as of February 2010, according to the Manila Standard.
The TCR-AP, citing BusinessWorld Online, reported on July 28,
2010, that Philippine Airlines announced a narrower loss for its
fiscal year that ended March 2010 to $14.3 million, from the
previous year's $297.8 million, but warned of still weak demand
for international flights.
================
S R I L A N K A
================
VALLIBEL FINANCE: Fitch Raises National Long-Term Rating to 'BB-'
-----------------------------------------------------------------
Fitch Ratings Lanka has upgraded Vallibel Finance PLC's National
Long-term rating to 'BB-(lka)' from 'B+(lka)'. The Outlook is
Stable.
The upgrade of VFL's rating reflects sustained improvements in its
credit metrics -- in particular its asset quality, profitability
and capitalisation -- as well as its increased scale of
operations, which Fitch believes would help strengthen the
company's balance sheet over the medium-term. The Stable Outlook
reflects Fitch's view that VFL would be able to maintain its
financial profile over the medium-term, supported by ongoing
improvements to its systems and processes and the improving
economic environment.
VFL's asset quality, which had weakened in 2008-2009, showed
continuous improvements from end-2009, aided by an improving
macro-economy and increased recovery efforts. Its gross NPLs
(arrears in excess of three months), which had reached their peak
in end-September 2009, fell by 34% by end-September 2010. This,
together with aggressive loan growth, enabled the company to post
a gross NPL ratio of 7.0% at end-September 2010 - an improvement
from 11.2% at end-March 2010 (FYE10). However, Fitch cautions
that as the loan book seasons, there could be an increase in NPLs.
Total advances grew 76% over September 2009-September 2010 on the
back of VFL's branch expansion in 2009 and 2010. The company
expects to migrate to a new operating system during 2011, which
should enable it to more closely monitor its growing loan book.
Loans comprised mainly hire purchase and lease facilities to
individuals in the SME segment for the purchase of commercial and
more recently agricultural vehicles.
Despite being faced with higher credit costs and narrowing margins
in H1FY10, VFL was able to post a return on asset of 2.6% in FY10,
marginally lower than that in FY09 (2.7%). Its profitability
improved to 4.0% in H1FY11, driven mainly by wider net interest
margins, though also benefiting from lower incremental
provisioning costs and higher non-interest income. NIMs widened
to 14.1% in H1FY11 (FY10: 11.6%), as VFL's deposits re-priced
faster than its leases and HPs, which are generally fixed for four
years. Fitch notes that margins should revert to previous levels
in FY12 as VFL's lending products are gradually re-priced.
VFL's deposit growth of 40% in H1FY11 (FY10: 39%) did not keep
pace with the rapid loan growth during the same period.
Consequently, loans to deposits remained high at 132% at end-
H1FY11. However, with its wider branch network, the company's
deposit base should expand over 2011.
VFL raised LKR114m through an initial public offering of its
shares in April 2010, diluting its parent's - Vallibel Investments
Ltd - stake to 72.87%. Following its equity infusion, VFL's
available capital buffer to meet potential loan losses (net
NPLs/equity) improved to 23.6% at end-September 2010 (FYE10:
51.8%), and compares well with peers'. Capital adequacy remained
comfortable with the company maintaining a tier 1 capital adequacy
ratio of 18.2% at end-September 2010.
Upside movement in VFL's rating would depend on it sustaining
asset quality and profitability at levels seen in H1FY10, while
also having available a healthy capital cushion to meet potential
loan losses and continuing with ongoing improvements to its risk
profile.
VFL is a registered finance company and is majority owned by VIL,
which in turn is owned by high net worth businessman Mr. K.D.D.
Perera. It has a network of four branches.
===============
T H A I L A N D
===============
TRUE CORPORATION: Moody's Affirms 'B2' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has affirmed the B2 corporate family
ratings on True Corporation Public Company Limited and its 98.9%-
owned subsidiary, True Move Company Limited. It has also affirmed
the B2 senior unsecured bond ratings of True Move.
The ratings outlook remains negative.
"Although True Corp's consolidated financial profile has improved
moderately since 2008, a number of factors -- True Move's weak
liquidity, the ongoing need for covenant waivers, as well as
further equity injection requirements -- underpin the negative
outlook for both companies," says Simon Wong, a Moody's Vice
President.
True Move's credit profile is highly correlated with True Corp's,
given their strong financial and operating links, and their
ratings are therefore equalized.
"True Corp's acquisition of Hutchison's mobile business in
Thailand provides True Group with an alternative mobile business
platform when True Move's 2G mobile concession expires in 2013,"
adds Wong, who is also Moody's lead analyst for the True Group.
However, Moody's is concerned about execution risks in relation to
the HSPA 3G upgrade and the migration of subscribers from the CDMA
network to the new HSPA platform. Furthermore, Thailand's
regulatory environment remains uncertain and there is no
indication whether True Move could migrate its subscribers to the
new network before its concession expires in 2013.
On January 27 2011, CAT entered into several contracts with the
subsidiaries of True Corp. The key contracts were: (1) appointing
Real Future to install 3G HSPA equipment on CATs CDMA nationwide
networks, and (2) appointing Real Move as a "reseller" of mobile
services on CAT's network for 15 years until 2026.
True Move's medium-term refinancing risk is heightened by US$465
million and US$225 million in bonds maturing in December 2013 and
August 2014 respectively. Such risk has moderated as Real Move,
which has a longer term of licence, is now a subsidiary guarantor
under the existing Bond Indentures.
True Corp will need to spend an additional THB5 to 6 billion in
capex to install 3G HSPA equipment, which will likely dampen its
free cash flow. Moreover, the acquisition cost, which includes
debt refinancing of up to THB6.3 billion, will likely hinder True
Corp's ability to de-leverage in 2011.
At the same time, the B2 rating is supported by True Corp's triple
play business model in broadband, pay-TV and mobile, as well as
its moderate leverage at its current rating level.
The negative outlook reflects True Move's poor liquidity and
ongoing need to seek covenant waivers from its bankers, as well as
the regulatory uncertainty.
Moody's is also concerned that True Corp may need to inject
additional funds into True Move under the Sponsor Support
Agreement, which will reduce available funds for investment in the
broadband business or for debt payments.
Given the negative outlook, the ratings are unlikely to be
upgraded in the near term.
However, the outlook could revert to stable should (1) True Corp's
shareholders inject sufficient funds into True Move to
recapitalize it and ease ongoing liquidity pressures or if True
Move resolves with its bank creditors to remove the overhang on
the rating; (2) the HSPA rollout be successfully completed; and
(3) the supplemental indenture be executed by Real Move's acquired
subsidiaries.
Moody's also seeks some degree of clarity with regard to
prospective financing arrangements for 3G auctions and the
subsequent rollout.
True Move's ratings could experience downward pressure if (1) the
company fails to negotiate anticipated covenant waivers (2) the
turnaround in the fundamental performance of the business proves
unsustainable (3) negative regulatory developments affect True
Move's mobile concession or its ability to refinance maturing
obligations.
Moody's last rating actions with respect to True Corp and True
Move were taken on November 21, 2008 when the ratings of both were
downgraded from B1 to B2, with a negative outlook.
Headquartered in Bangkok, True Corp is an integrated provider of
fixed-line, broadband, internet, and mobile services, and pay TV.
True Corp is listed on the Thai Stock Exchange; the Charoen
Pokphand Group (CP Group) is the major shareholder (64.72%).
Its wireless business is conducted predominantly through its
98.9%-owned subsidiary, True Move, Thailand's third largest mobile
telecommunications operator. Its pay TV business is conducted
through 91.8%-owned True Visions Public Company Limited, which is
currently the only nationwide provider of pay television services
in the country.
*********
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
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 ***