/raid1/www/Hosts/bankrupt/TCRAP_Public/110215.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
Tuesday, February 15, 2011, Vol. 14, No. 32
Headlines
A U S T R A L I A
AUSTRALIAN MUTUAL: S&P Downgrades Ratings on Various Tranches
VISION SECURITIES: S&P Withdraws 'D/D' Counterparty Credit Rating
C H I N A
CHINA EVERBRIGHT: Moody's Upgrades Deposit Ratings from 'Ba1'
RADIENT PHARMACEUTICALS: Unit Closes $900,000 Bridge Financing
SHENZHEN DEVELOPMENT: Moody's Keeps 'Ba2' Long-Term Deposit Rating
H O N G K O N G
HK PEOPLE: Members' Final Meeting Set for March 14
ITI INTERNATIONAL: Ariane Slinger Appointed as Liquidator
KANMAX ENTERPRISES: Fan Chung Shan-Yu Steps Down as Liquidator
MAN TUNG: Placed Under Voluntary Wind-Up Proceedings
MASSKIND INVESTMENTS: Creditors' Proofs of Debt Due March 11
PETSTEAD HOLDINGS: Creditors' Proofs of Debt Due March 4
SIREO IMMOBILIENFONDS: Lai and Haughey Step Down as Liquidators
I N D I A
ADHUNIK POWER: Fitch Puts 'BB' Rating on Non-Monitored Category
BHOOMI GINNING: ICRA Assigns 'LB+' Rating to INR19.98cr LT Loan
GANESH TAMULI: CRISIL Rates INR30 Million Cash Credit at 'BB-'
GUJARAT GINNING: ICRA Assigns 'LB+' Rating to INR9cr Cash Credit
HINDUSTAN ANTIBIOTICS: CRISIL Assigns 'D' Rating to LT Bank Loan
JOLLY AGRI: ICRA Places 'LBB-' Rating on INR20cr Cash Credit
LMJ INTERNATIONAL: Fitch Gives Positive Outlook; Keeps BB+ Rating
MADHAV GINNING: ICRA Assigns 'LB+' Rating to INR13cr LT Loan
MAWMLUH CHERRA: Fitch Upgrades National Long-Term Rating to 'C'
R R OOMERBHOY: CRISIL Assigns 'B+' Rating to INR90MM Cash Credit
RAMESH ZAVERI: CRISIL Rates INR125.0 Million Cash Credit at 'B'
SARASWATI EDUCATION: ICRA Assigns 'LB' Rating to INR87cr Term Loan
SHRI RADHA: CRISIL Assigns 'B' Rating to INR26.3MM Term Loan
SHRI THANGAM: ICRA Places 'LB+' Rating on INR10.07cr Bank Debts
SRI KANDHAN: CRISIL Reaffirms 'P4' Ratings on Various Bank Debts
SHIV SHAKTI: CRISIL Assigns 'D' Rating to INR55.5 Mil. Term Loan
TECHNOMAX BUILDING: ICRA Places 'LBB' Rating on INR15cr Term Loans
TRINITY ENGINEERS: CRISIL Assigns 'BB-' Rating to INR11.4MM Loan
VENKRAFT PAPER: CRISIL Reaffirms 'BB+' Rating on Long Term Loans
WESTSIDE HOTELS: ICRA Assigns 'LB' Rating to INR18cr Term Loans
I N D O N E S I A
GARUDA INDONESIA: To Spend IPO Funds on New Airplanes
LIPPO KARAWACI: Moody's Affirms 'B1' Corporate Family Rating
LIPPO KARAWACI: S&P Assigns 'B+' Rating to US$125 Mil. Notes
* Moody's Publishes 2001 Sovereign Report on Indonesia
J A P A N
HARVEST TRUST: Moody's Takes Rating Actions on Various Classes
JLOC 37: Moody's Changes Ratings on Various Classes of Notes
ORIX-NRL TRUST: S&P Affirms Ratings on Various Classes of Notes
N E W Z E A L A N D
ALLIED NATIONWIDE: S&P Withdraws 'D/D' Counterparty Credit Rating
HANOVER FINANCE: Securities Commission to Give Update Next Month
IRONGATE PROPERTY: In the Dark Over Bluestone Deal to Buy Contract
WAIPAWA FINANCE: Investors Likely to Recover Less Than NZ1 Million
P H I L I P P I N E S
PHILIPPINE AIRLINES: Ordered to Present Quarterly Financial Result
SUMIFRU PHILIPPINES: Cuts Operations; 144 Workers Affected
X X X X X X X X
* S&P: Global Corporate Default Tally Remains at 2 in 2011
* BOND PRICING: For the Week February 7 to February 11, 2011
- - - - -
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A U S T R A L I A
=================
AUSTRALIAN MUTUAL: S&P Downgrades Ratings on Various Tranches
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered the
ratings on the mezzanine and junior tranches of notes issued by
Australian Mutual LT2 Capital Funding (No. 1) Ltd. At the same
time, the 'A+ (sf)' rating on the senior notes was affirmed.
The AU$45.5 million floating-rate notes issued by AMCF is secured
by a portfolio of lower tier 2 instruments issued by 16
participating Australian credit unions. The credit performance of
the instruments has a direct impact on the timely payment of
interest and ultimate repayment of principal to noteholders.
The ratings actions reflect an increase in obligor concentration
across the portfolio because of merger activity among the
underlying credit unions. Since December 2009, the number of
participating credit unions with lower tier 2 instruments in the
portfolio has reduced to 16 from 19. Currently, the largest
obligor in the portfolio accounts for more than 20% of the total
portfolio balance. As a result of the higher portfolio
concentration, S&P's minimum credit enhancement at each rating
level has increased.
The rating on the senior notes has been affirmed because the
credit support available to the senior notes is commensurate with
the current rating of 'A+ (sf)'. However, in S&P's opinion, as
the credit support available to the mezzanine and junior notes is
no longer sufficient at the previous rating levels, the ratings on
these classes have been lowered.
Australian Mutual LT2 Capital Funding (No.1) Ltd.
Ratings Lowered
Class Rating to Rating from
----- --------- -----------
Mezzanine BB- (sf) BB+ (sf)
Junior B- (sf) B (sf)
Rating Affirmed
Class Rating
----- ------
Senior A+ (sf)
VISION SECURITIES: S&P Withdraws 'D/D' Counterparty Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'D/D'
counterparty credit and issue credit ratings on New Zealand
finance company Vision Securities Ltd. have been withdrawn.
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C H I N A
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CHINA EVERBRIGHT: Moody's Upgrades Deposit Ratings from 'Ba1'
-------------------------------------------------------------
Moody's Investors Service has upgraded China Everbright Bank's
long-term foreign currency deposit ratings to Baa3 from Ba1, and
its short-term foreign currency deposit ratings to Prime-3 from
Not-Prime. The outlook is stable.
Moody's has also affirmed CEB's bank financial strength rating of
D- and changed the outlook to positive from stable. The D- BFSR
maps to a baseline credit assessment of Ba3.
Below is a list of all of the bank's ratings:
-- Bank financial strength rating: D- with positive outlook
-- Long-term foreign currency bank deposit rating: Baa3
(upgraded from Ba1) with stable outlook
-- Short-term foreign currency bank deposit rating: Prime-3
(upgraded from Non-prime)
Ratings Rationale
"The upgrade to CEB's deposit ratings reflects Moody's assessment
that the position of the bank as one owned and controlled by the
government will not change during Moody's rating horizon," says
Yvonne Zhang, a Moody's Vice President and lead analyst for the
bank.
Central Huijin Investment Ltd, representing the government, owns
52% of CEB directly and indirectly following CEB's IPO in August
2010, and has stated its commitment to not transfer its shares
within the 36 months following the IPO. Huijin is a wholly owned
subsidiary of China Investment Corporation, a sovereign wealth
fund.
In addition, even if the ownership structure does change, Moody's
believes that it will be limited most likely to shifts between
Huijin, CEB's parent China Everbright Group, and related
departments in the government such as the Ministry of Finance,
without reducing the government's control. Currently, CEG is
under the direct control of the State Council.
The positive outlook on CEB's BFSR reflects the improvement in
CEB's financial performance leading up to and following the IPO.
Having raised RMB21 billion, CEB was able to strengthen its Tier 1
capital ratio to 8.99% at the end of 3Q2010, from 6.40% at the end
of 2Q2010. CEB has also improved its asset and liability
structure to narrow the gap in the net interest margin between the
bank and its peers. And it has taken steps to improve its
internal controls as well as its risk management and operations.
The D- BFSR reflects CEB's short track record since its August
IPO. The bank's asset quality has improved substantially since it
sold off its legacy bad loans in 2008, leading to a non-performing
loan ratio of 0.87% at the end of 3Q2010. However, Moody's
believes its NPLs are at or near cyclical lows. The rapid loan
growth since the beginning of 2009 raises concerns about potential
asset quality deterioration when recently originated loans season
in a tightening credit environment.
An upgrade to CEB's BFSR would require that the bank's financial
performance in the next 18 months be consistent and solid, in an
environment of tightening monetary policy and growing competition
in the banking sector. Any signs of a slowdown or reversal in the
improvements in risk management, controls, or corporate governance
would be negative for the BFSR.
Moody's last rating action on CEB was taken on November 9, 2009,
when Moody's affirmed its outlook on the ratings.
CEB is headquartered in Beijing, and as of September 30, 2010, had
reported total assets of RMB1.5 trillion (about US$ 223 billion).
RADIENT PHARMACEUTICALS: Unit Closes $900,000 Bridge Financing
--------------------------------------------------------------
Jade Pharmaceuticals Inc., a China-based pharmaceutical company
and deconsolidated subsidiary of Radient Pharmaceuticals
Corporation (NYSE Amex: RPC), a U.S.-based company specializing in
the research, development, and international commercialization of
In Vitro Diagnostic cancer tests, reported it has closed on
$900,000 in bridge financing.
The financing will be used to underwrite legal and accounting
expenses associated with the previously announced anticipated
merger of JPI and Shanxi BaoTai Pharmaceutical Co., Ltd. (BaoTai)
3/4 a privately-owned pharmaceutical manufacturing company located
in Taiyuan, China.
According to Douglas MacLellan, Chairman and CEO of RPC, "This
bridge financing is an important part of our overall financing
strategy that will allow us to move ahead with our planned merger
with BaoTai, after which, we hope to list public shares of the
newly formed organization on a public exchange. Our primary focus
is to exploit the core competencies of JPI and BaoTai to
ultimately build a high-growth business that delivers novel
cancer-centric pharmaceutical products to global, in-demand
markets."
JPI is the second leading provider of DomperidoneTM 3/4 an
antiemetic pharmaceutical product used to prevent nausea and
vomiting caused by chemotherapy treatment or other medications
given to patients. Annual Domperidone sales in China are
estimated to be $250 million at the patient level, and
approximately $125 million at the wholesale level, with an annual
growth rate of 15%. The Company believes the combined companies
will be in a strong position to gain at least 50% of the Chinese
Domperidone market within the next 3 years. In addition, both
companies have a solid product pipeline that should enable them to
introduce a minimum of five additional cancer-centric products to
market each of which has the potential to generate $50 million in
gross revenues by FY2015.
RPC owns approximately 98% of JPI, which is a China-based
pharmaceutical company engaged in the manufacture and distribution
of generic and homeopathic pharmaceutical products. JPI operates
a wholly-owned Chinese subsidiary Jiangxi Jiezhong Bio-Chemical
Pharmacy Company Limited (JJB). For additional information on
Radient Pharmaceuticals, AMDL Diagnostics Inc., JPI and its
portfolio of products visit the Company's corporate Web site at
www.Radient-Pharma.com. For Investor Relations information
contact Kristine Szarkowitz at IR@Radient-Pharma.com or
1.206.310.5323.
About Radient Pharmaceuticals
Headquartered in Tustin, Calif., Radient Pharmaceuticals
Corporation -- http://www.Radient-Pharma.com/-- is engaged in the
research, development, manufacturing, sale and marketing of its
ONKO-SURE(TM) a proprietary IVD Cancer Test in the United States,
Canada, China, Chile, Europe, India, Korea, Taiwan, Vietnam and
other markets throughout the world.
Radient said in October 2010 it incurred a trigger event on the
12% Convertible Notes issued in first and second quarter of 2010
due to its failure to have the related registration statement
declared effective by June 1, 2010. The Company filed on Sept. 7,
2010, an Event of Default under those same notes occurred since it
did not hold the related shareholder meeting by August 31, 2010.
As reported in the Troubled Company Reporter on April 19, 2010,
KMJ Corbin & Company LLP, in Costa Mesa, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern, following its 2009 results. The independent
auditors noted that the Company incurred a significant operating
loss and negative cash flows from operations in 2009 and had a
working capital deficit of $4.2 million at December 31, 2009.
The Company's balance sheet at Sept. 30, 2010, showed
$23.56 million in total assets, $34.22 million in total
liabilities, and a stockholders' deficit of $10.66 million.
SHENZHEN DEVELOPMENT: Moody's Keeps 'Ba2' Long-Term Deposit Rating
------------------------------------------------------------------
Moody's Investors Service has affirmed Shenzhen Development Bank's
Ba2 long-term foreign currency deposit rating, D- bank financial
strength rating, and Not Prime short-term foreign currency rating.
The outlooks for all ratings remain positive. The D- BFSR maps to
a Baseline Credit Assessment of Ba3.
Below is a list of all of the bank's ratings:
* Bank financial strength rating: D- with positive outlook
* Long-term foreign currency bank deposit rating: Ba2 with
positive outlook
* Short- term foreign currency bank deposit rating: Non-prime
Ratings Rationale
The positive outlook on SZDB's ratings reflects the prospect of
stronger franchise value, better access to capital, and further
improvements in financial performance for the bank as a member of
Ping An Insurance (Group) Company of China, Ltd.
PAIG, directly or indirectly, owns 29.99% of SZDB. Currently,
SZDB is in the process of obtaining regulatory approval for its
proposed merger with Ping An Bank (unrated), a subsidiary of PAIG.
According to the proposal, SZDB will issue shares valued at RMB29
billion to PAIG in exchange for PAIG's 90.75% stake in PAB and
RMB2.7 billion in cash, equivalent to 9% of PAB. After completion
of these transactions, PAIG will own about 52% of SZDB.
"We expect the two banks to complete the merger, after obtaining
the regulatory approval likely in 2011, at which time Moody's will
consider upgrading Shenzhen Development Bank's long term deposit
rating to Ba1." says Yi Zhang, a Moody's Vice President and Senior
Analyst.
"However, any upgrade to the BFSR would likely take place over a
slightly longer -- 12 to 18 months -- timeframe. Specifically,
Moody's would view as positive for the BFSR if 1) SZDB can
maintain solid asset quality as its loan book seasons, 2) it can
maintain profitability and liquidity, and 3) it can keep its Tier
I ratio at or above 8%," adds Zhang.
PAIG has demonstrated its commitment to developing the banking
business as part of its long term growth strategy. It has lent
valuable support to SZDB during the regulatory approval process
for the proposed merger. Preparations for the eventual
integration of the two banks' operations have already started.
Moody's last action on SZDB was taken on November 9, 2009, when
Moody's affirmed its outlook on the ratings.
Shenzhen Development Bank is headquartered in Shenzhen. As of
September 2010, SZDB had unaudited total assets of RMB 675.1
billion (about US$ 100.8 billion).
================
H O N G K O N G
================
HK PEOPLE: Members' Final Meeting Set for March 14
--------------------------------------------------
Members of Hong Kong People Limited will hold their final general
meeting on March 14, 2011, at 11:30 a.m., at Room 601, 6/F.,
Kimberley House, 35 Kimberley Road, Tsim Sha Tsui, Kowloon, in
Hong Kong.
At the meeting, Kwan Wing Yee, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
ITI INTERNATIONAL: Ariane Slinger Appointed as Liquidator
---------------------------------------------------------
Ariane Slinger on January 28, 2011, was appointed as liquidator of
ITI International Trading and Intermediary Company Limited.
The liquidator may be reached at:
Ms. Ariane Slinger
rue Miche-du-Crest 1
1205 Geneve, Switzerland
KANMAX ENTERPRISES: Fan Chung Shan-Yu Steps Down as Liquidator
--------------------------------------------------------------
Fan Chung Shan-Yu stepped down as liquidator of Kanmax Enterprises
Limited on January 31, 2011.
MAN TUNG: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------
At an extraordinary general meeting held on February 10, 2011,
creditors of Man Tung Handbag Products Factory Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Lui Wai Yau
Unit A, 7/F
88 Commercial Building
28-34 Wing Lok Street
Central, Hong Kong
MASSKIND INVESTMENTS: Creditors' Proofs of Debt Due March 11
------------------------------------------------------------
Creditors of Masskind Investments Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by March 11, 2011, to be included in the company's dividend
distribution.
The company's liquidators are:
Chan Shu Kin
Chow Chi Tong
9th Floor, Tung Ning Building
249-253 Des Voeux Road
Central, Hong Kong
PETSTEAD HOLDINGS: Creditors' Proofs of Debt Due March 4
--------------------------------------------------------
Creditors of Petstead Holdings Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by March 4, 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
SIREO IMMOBILIENFONDS: Lai and Haughey Step Down as Liquidators
---------------------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey stepped down as
liquidators of Sireo Immobilienfonds No. 4 Reb Hong Kong Tower
Limited on February 7, 2011.
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I N D I A
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ADHUNIK POWER: Fitch Puts 'BB' Rating on Non-Monitored Category
---------------------------------------------------------------
Fitch Ratings has migrated the National Long-term 'BB(ind)'
ratings on India's Adhunik Power & Natural Resources Limited and
its INR9,470 million bank loan to the "Non-Monitored" category.
The ratings will now appear as 'BB(ind)nm' on Fitch's website.
The ratings have been migrated to the "Non-Monitored" category due
to lack of adequate information, and Fitch will no longer provide
ratings or analytical coverage on APNRL. The ratings will remain
in the "Non-Monitored" category for a period of six months and be
withdrawn at the end of that period. However, in the event the
issuer starts furnishing information during this six-month period,
the ratings could be reinstated and will be communicated through a
Rating Action Commentary.
BHOOMI GINNING: ICRA Assigns 'LB+' Rating to INR19.98cr LT Loan
---------------------------------------------------------------
ICRA has assigned an 'LB+' rating to the INR19.98 crores long term
fund based facilities and 'A4' rating to the INR0.02 crores short
term non fund based facilities of Bhoomi Ginning Pressing Pvt Ltd.
The ratings are constrained by the company's highly leveraged
capital structure, low coverage indicators and the fragmented
nature of the industry resulting in high competitive intensity.
Further, the company is exposed to adverse movement in raw
material prices which coupled with low value addition nature of
the work, keeps the profitability metrics and cash accruals at
modest levels. Although the track record of company's operations
is limited, the ratings also consider the long standing experience
of promoters in the industry and company's proximity to the raw
material sources which ensure easy availability of cotton.
About Bhoomi Ginning
Bhoomi Ginning Pressing Pvt Ltd is engaged in Cotton Ginning and
trading of cotton bales, cotton seed, oil and cake. The promoters
of the company have vast experience of cotton ginning business.
BGPPL procures only Shankar-6 cotton, which is easily available in
nearby areas. The company has a set up its manufacturing facility
in Jasdan, Rajkot.
Recent results
BGPPL reported a profit after tax (PAT) of Rs 0.06 crores on an
operating income of INR 36.81 crores in 2009-10, against a PAT of
INR0.02 crores on an operating income of INR32.95 crores in
2008-09. For the unaudited period of 6 months of FY11, BGPPL
reported PAT of INR0.19 crores on an operating income of INR13.62
crores.
GANESH TAMULI: CRISIL Rates INR30 Million Cash Credit at 'BB-'
--------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Ganesh Tamuli Engineering Pvt Ltd (GTEPL, part of
the Tamuli group).
Facilities Ratings
---------- -------
INR30.00 Million Cash Credit BB-/Stable (Assigned)
INR53.00 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the Tamuli group's constrained financial risk
profile, marked by small net worth and weak debt protection
metrics, and small scale of operations in the civil construction
industry. These ratings are partially offset by the extensive
industry experience of the Tamuli group's promoters.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of GTEPL and Ganesh Tamuli (GT). This is
because both entities, collectively referred to as the Tamuli
group, have common directors, are in the same line of business,
and have operational synergies.
Outlook: Stable
CRISIL believes that the Tamuli group will benefit from the high
growth prospects of the civil construction industry, over the
medium term. The outlook may be revised to 'Positive' if the
Tamuli group strengthens its business risk profile through greater
customer diversity while maintaining its operating margin or
substantially improves its scale of operations. Conversely, the
outlook may be revised to 'Negative' if the group's financial risk
profile deteriorates because of any larger-than-expected debt-
funded capital expenditure.
About Ganesh Tamuli
Set up in 1983, GT is a proprietorship concern that constructs
buildings, roads, and undertakes other infrastructure development
activities for government entities. However, due to expansion in
business operations, the promoters incorporated GTEPL in December
2006. An agreement was executed to take over GT's business by
GTEPL with effect from April 01, 2009. Going forward, operations
of GT will cease to exist and the business will be carried forward
by GTEPL. The Tamuli group is classified as a Class 1(A)
contractor by the Assam Public Works Department.
The Tamuli group reported a profit after tax (PAT) of INR3 million
on net sales of INR265 million for 2009-10 (refers to financial
year, April 1 to March 31) as against PAT of INR2 million on net
sales of INR317 million for 2008-09.
GUJARAT GINNING: ICRA Assigns 'LB+' Rating to INR9cr Cash Credit
----------------------------------------------------------------
ICRA has assigned an 'LB+' rating to INR 9.00 crore cash credit
facility and INR 1.00 crore term loan of Gujarat Ginning & Oil
Industries.
The assigned ratings are constrained by GGOI's relatively modest
scale of operations; low capacity utilization of ginning unit as
well as oil mill; the low profitability given the lack of
diversification in product profile, limited value addition and
fragmented nature of the industry. The ratings also take into
account the vulnerability of profitability to fluctuations in raw
material prices as well as exposure to regulatory risk with
regards to Minimum Support Price for raw cotton fixed by the
Government of India; While assigning the ratings ICRA has also
noted the risks of capital withdrawals that are inherent in
partnership firms although there have been no such withdrawals in
the past.
The ratings however, favorably factor in GGOI's experienced
management with long track record in the cotton ginning industry
and moderate revenue growth in the last three years. The ratings
also take into account the favorable location of the company which
helps the company in procuring high quality raw material; as well
as favorable demand outlook for cotton and cottonseed oil.
About Gujarat Ginning
Gujarat Ginning & Oil Industries was established in the year 1994
as a partnership firm. The firm is involved in the business of
cotton ginning and cotton seed crushing with a product mix of FP
cotton bales, cottonseed wash oil, cottonseed cake and cottonseed
soap. The firm is also involved in trading of FP cotton bales and
cotton seeds.
Recent Results
For the year ended March 31, 2010, the firm reported an operating
income of INR 54.28 crore and profit after tax of Rs 0.07 crore.
HINDUSTAN ANTIBIOTICS: CRISIL Assigns 'D' Rating to LT Bank Loan
----------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to the bank facilities of
Hindustan Antibiotics Ltd.
Facilities Ratings
---------- -------
INR570.90 Million Proposed Long-Term D (Assigned)
Bank Loan Facility
INR229.10 Million Proposed Short-Term P5 (Assigned)
Bank Loan Facility
The ratings reflect instances of delay by HAL in servicing its
debt; the delays have been caused by the company's weak liquidity.
HAL has a weak financial risk profile, marked by a negative net
worth, high gearing, and weak debt protection metrics, large
working capital requirements, small cash accruals, and weak
operating efficiencies. These weaknesses are partially offset by
HAL's long standing experience in the pharmaceutical industry, and
the support it receives from the Government of India (GoI) in the
form of grants and loans.
HAL is a wholly owned GoI undertaking, with a manufacturing unit
in Pimpri (Maharashtra). Set up in 1954 with the assistance of the
World Health Organisation (WHO) and the United Nations Children's
Fund, HAL was the country's first antibiotic manufacturing plant
with the objective of providing life-saving antibiotics at
affordable prices. HAL manufactures and markets bulk drugs, mainly
penicillin, streptomycin, gentamicin, and hamycin. It has also
begun manufacturing formulation products such as injectables,
capsules, tablets, liquid syrups, and large volume parenterals.
Currently, formulation products account for almost all the
company's revenues. HAL sells its products mainly to state
government hospitals and health departments. HAL was referred to
Board for Industrial and Financial Reconstruction (BIFR) in March
1997 due to its weak financial position and its rehabilitation
scheme was approved and implemented in 2006 with funding support
from GoI to the extent of INR 1.37 billion.
In 2008-09 (refers to financial year, April 1 to March 31), HAL
set up a state-of-the-art cepholosporin powder injectable plant
with a total capacity of 450 million vials per annum. The plant
started commercial production in October 2009 and received WHO
good manufacturing practices (GMP) approval in June 2010.
JOLLY AGRI: ICRA Places 'LBB-' Rating on INR20cr Cash Credit
------------------------------------------------------------
ICRA has assigned an 'LBB-' rating to the INR 20.00 crore cash
credit facility of Jolly Agri Exim Private Limited. The outlook
for the rating is stable.
The ratings are constrained by the limited track record of the
company, modest size of operations and relatively weak financial
profile characterized by high gearing levels and low profitability
indicators. The ratings further take into account the presence of
moderate client concentration risk with about 40% of sales for
9MFY11 being contributed by three clients; vulnerability of
operations of the company to government policies related to
exports and fluctuations in availability and prices of traded
goods subject to seasonality and crop harvest.
The ratings however positively consider the experience of the
promoter in trading of agro products, the healthy growth in
operating revenue during Q3FY11 which has also resulted in a
diverse product profile, addition of new customers as well as
diversification in terms of geographies. The ratings also
consider the cotton exporter registration obtained by the company
which is expected to further support the revenues in the short
term. The ratings also account for the favorable location of the
company with proximity to port which benefits the exports.
About Jolly Agri
Jolly Agri Exim Pvt. Ltd. was incorporated as Shri Saibaba
Tradelink Pvt. Ltd. in April 2008 with Jollyali Halani and Nilofer
Halani as the promoters and shareholders. The name of the company
was changed later to Jolly Agri Exim Pvt. Ltd. and the
shareholding is presently distributed between the promoters and
family members. JAEPL is engaged in exports and domestic trading
of agro products. The company has its registered office in
Chotila, Gujarat.
Recent Results
For the 9 month period ended December 31, 2010, the company
reported an operating income of INR 36.44 Cr. and profit before
tax of INR 0.35 Cr (provisional).
LMJ INTERNATIONAL: Fitch Gives Positive Outlook; Keeps BB+ Rating
-----------------------------------------------------------------
Fitch Ratings has revised the Outlook on LMJ International
Limited's National Long-term rating to Positive from Stable, and
simultaneously affirmed the rating at 'BB+(ind)'. The agency has
also affirmed the ratings on LMJ's bank loans:
- Outstanding INR140.8m long-term loans: 'BB+(ind)';
- Sanctioned INR1845m fund-based limits: 'F4(ind)'; and
- Sanctioned INR2407.5m non fund-based limits: 'F4(ind)'
The Positive Outlook reflects deferment of LMJ's planned
INR1,045.6m capex in FY11 for setting up processing units cum
warehouses for pulses, tea, coffee, cashew and maize, as the
company has decided to fund the same through equity instead of
debt from banks. Furthermore, the capex is not expected to be
revived in the near term, and hence leverage would be low at
around 5.0x in FY11as against the expected 8x .
Fitch notes the improvement in the company's performance during
H1FY11, as reflected in its revenues of INR5,723.1 million (FY10:
INR10,533.2 million), with EBIDTA margin increasing to 3.05%
(FY10: 2.72%) and interest cover (EBIDTA/ interest) to 2.49x
(FY10: 1.89x). However, LMJ's cash flows from operation were
negative INR322.6m in FY10 due to working capital intensive nature
of business. The agency believes the company will maintain CFO
around FY10 levels in the near term and meet its liquidity
requirement through available bank limits. Furthermore, LMJ
carries low inventory and pricing risks from back-to-back
transaction-based contracts for its bulk orders; although for
retail orders, it is required to maintain some level of inventory.
The ratings affirmation reflects the competitive nature of LMJ's
trading business, as seen in its low EBITDA margins of 2.7% (FY09:
3.2%) and high working capital requirements in FY10. The
company's net leverage (net debt/EBITDA) deteriorated to 5.3x in
FY10 (FY09: 3.0x). Also, its trading business is exposed to
government regulations.
Positive rating guidelines include maintenance of net leverage at
below 5x during 2011. Conversely, the Outlook could be revised
back to Stable, if net leverage is sustained above 5x. Also, the
ratings could be downgraded, if the company undertakes any major
debt-led capex, putting pressure on leverage.
Incorporated in 1992, LMJ is an agriculture-based export house.
It exports a large commodity basket comprising tea, coffee, wheat,
rice, soya bean, and imports commodities like edible oil and
pulses.
MADHAV GINNING: ICRA Assigns 'LB+' Rating to INR13cr LT Loan
------------------------------------------------------------
ICRA has assigned an 'LB+' rating to the Rs 13.0 crores long term
fund based facilities of Madhav Ginning & Pressing Pvt Ltd.
The rating is constrained by the company's highly leveraged
capital structure, low coverage indicators and the fragmented
nature of the industry resulting in high competitive intensity.
Further, the company is exposed to adverse movement in raw
material prices which coupled with low value addition nature
of the work, keeps the profitability metrics and cash accruals at
modest levels. The rating however, favorably factors in the long
standing experience of promoters in the industry and company's
proximity to the raw material sources which ensure easy
availability of cotton.
Madhav Ginning & Pressing Pvt Ltd is engaged in Cotton Ginning,
trading of cotton bales, cotton seed, oil and cake. The promoters
of the company have vast experience of cotton ginning business and
earlier engaged in the same activity in the form of Proprietorship
concern. MGPPL procures only Shankar-6 cotton, which is easily
available in nearby areas. The company has a set up its
manufacturing facility in Jasdan, Rajkot.
Recent results
MGPPL reported a profit after tax (PAT) of Rs 0.08 crores on an
operating income of INR 53.66 crores in 2009-10, against a PAT of
INR0.34 crores on an operating income of INR58.91 crores in
2008-09. For the unaudited period of 6 months of FY11, MGPPL
reported PAT of INR1.46 crores on an operating income of INR31.08
crores.
MAWMLUH CHERRA: Fitch Upgrades National Long-Term Rating to 'C'
---------------------------------------------------------------
Fitch Ratings has upgraded India's Mawmluh Cherra Cements
Limited's National Long-term rating and the rating on its
INR509.6m long-term loans to 'C(ind)' from 'D'.
The upgrades reflect the timely payments of most of monthly
interests by MCCL of funded interest term loan account and term
loan account. At FYE10 (end-March 2010), the company's term loan
account was restructured and all accrued interests on the term
loans were transferred to FITL A/c, with monthly interest payments
on both the accounts. The repayment of principal has been
rescheduled from May 2012 onwards. MCCL has also received partial
funds from the Government of Meghalaya as part of their equity
contribution towards the ongoing INR1152.9m capex programme to
increase cement plant capacity by 180,000 metric tonne per annum,
which would ease the liquidity issues and complete the capex
without any significant delay.
Positive rating guidelines include completion of the project,
which would lead to positive EBITDAR level, and timely repayments
of term loans principal and interest. Delays in payment of
interest on term loans and FITL A/c could be negative for the
ratings.
In FY10, MCCL reported revenues of INR255.7 million (FY09: INR187
million ), negative EBITDAR margins of 51.35% (FY09: negative
51.87%). Its total debt outstanding at FYE10 was INR277.9m
(FYE09: INR257.8 million). MCCL's net cash conversion improved
significantly to 26 days at FYE10 (FYE09: 156 days) mainly with
the help of an increase in payable days to 115 days (FYE09: 48
days). Free cash flow for FY10 was negative INR150.4 million
(FY09: negative INR212.7 million). Fitch expects the company's
FCF to be negative over the short- to medium-term due to the
ongoing capex program.
R R OOMERBHOY: CRISIL Assigns 'B+' Rating to INR90MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the bank facilities
of R R Oomerbhoy Pvt Ltd.
Facilities Ratings
---------- -------
INR90.0 Million Cash Credit B+/Stable (Assigned)
INR41.1 Million Rupee Term Loan B+/Stable (Assigned)
INR8.9 Million Proposed Long-Term B+/Stable (Assigned)
Bank Loan Facility
The rating reflects RRO's weak financial risk profile, marked by
high gearing and weak debt protection metrics, and exposure to
risks related to intense competition in the edible oil industry.
These weaknesses are partially offset by the extensive experience
of RRO's promoters in the edible oil industry.
Outlook: Stable
CRISIL believes that RRO will benefit over the medium term from
extensive experience of its promoters in the edible oil industry.
The outlook may be revised to 'Positive' if the company
significantly increases its operating revenues and accruals while
improving its gearing and debt protection metrics. Conversely, the
outlook may be revised to 'Negative' in case of a significant
decline in profitability, or if RRO's debt protection metrics
deteriorate significantly, on account of a larger-than-expected,
debt-funded capital expenditure programme.
R R Oomerbhoy pvt ltd was incorporated in 1992 by Mr. Rashid
Oomerbhoy, a third generation member from the family of Mr. Ahmed
Oomerbhoy (founder of Ahmed Mills). The operations are currently
managed by Mr. Rashid Oomerbhoy along with his son Mr. Riyad
Oomerbhoy and daughter Mrs. Roohi Oomerbhoy. RRO is engaged in
refining and sales of edible oils and also in trading of
international brands like 'Barilla' , 'Filippo Berio' and
'Boursin' engaged in pasta, olive oil, and cheese respectively.
RRO has installed capacity of edible oil of about 16,500 tonnes
per annum. RRO sells edible oils under 'RRO' brand. Sale of edible
oil constituted about 80 per cent of the total sales in 2010 with
balance generated from traded items. Sale of in-house RRO brand
groundnut oil formed about 50 per cent of the total revenues in
2010.
RRO reported a profit after tax (PAT) of INR0.31 million on net
sales of INR630.2 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.3 million on net sales
of INR582.1 million for 2008-09.
RAMESH ZAVERI: CRISIL Rates INR125.0 Million Cash Credit at 'B'
---------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the cash credit
facility of Ramesh Zaveri & Company, part of the Ramesh Zaveri
group.
Facilities Ratings
---------- -------
INR125.0 Million Cash Credit B/Stable (Assigned)
The rating reflects the Ramesh Zaveri group's weak financial risk
profile, marked by a small net worth and high gearing, and
exposure to risks related to intense industry competition in the
business-to- business segment. The impact of these rating
weaknesses is mitigated by the benefits that the Ramesh Zaveri
group derives from its promoter's extensive experience in the
manufacture and trade of gold jewellery, and its established
relationships with its customers and suppliers.
For arriving at the rating, CRISIL has combined the financial risk
profiles of RZC, a sole proprietorship firm, and M/s Rahul
Jewellers (MRJ), the Hindu undivided family (HUF) concern. This
is because the two entities, together referred to as the Ramesh
Zaveri group, are under a common management, in a similar line of
business, and have fungible cash flows.
Outlook: Stable
CRISIL believes that the Ramesh Zaveri group will benefit over the
medium term from its established market presence and its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the group significantly increases its
revenues and operating margin, while maintaining or improving its
capital structure. Conversely, the outlook may be revised to
'Negative' in case of deterioration in the Ramesh Zaveri group's
gearing or debt protection metrics.
About the Group
Set up in 1968 by Mr. Ramesh Ranavat, the Ramesh Zaveri group
manufactures, and trades in gold jewellery with a specialisation
in gold chains. The group operates through MRJ, the HUF unit
which manufactures the chains, and RZC, the sole proprietorship,
which trades in gold chains manufactured by MRJ. The group
operates out of its factory at Sewri and office at Zaveri Bazar,
both in Mumbai (Maharashtra). RZC, the trading arm, sells to
wholesalers, through its office at Zaveri bazaar and two branches,
at Cuttack and Berhampur in Orissa.
On a consolidated basis, the Ramesh Zaveri group reported a profit
after tax (PAT) of INR6.3 million on net sales of INR752 million
for 2009-10 (refers to financial year, April 1 to March 31),
against a PAT of INR4.7 million on net sales of INR50.8 million
for 2008-09.
SARASWATI EDUCATION: ICRA Assigns 'LB' Rating to INR87cr Term Loan
------------------------------------------------------------------
ICRA has assigned the 'LB' rating to the INR87.00 crore term loan
facility of Saraswati Education Society.
The rating is constrained by the past instances of delay debt
servicing as a result of tight liquidity during the months ahead
of admission season given the seasonality in cash inflows. The
rating is also constrained by the weak capital structure and poor
coverage ratios due to large debt funded capital expenditures
undertaken by the society, plans for further debt funded capital
expenditure, restricted scope for future revenue growth - other
than through addition of new colleges given the regulated fee
structure, and difficulty in attracting quality faculty and
students given the increasing competitive intensity with the
addition of many new private colleges. The rating, however, takes
comfort from the experience of the promoters in the education
sector, diversified portfolio of courses catered to by the
colleges under the society, healthy seat occupancy levels, and
increasing demand for higher education in India.
Saraswati Education Society was established in December 2003 by
Dr. Nandakumar Yadavrao Tasgaonkar, currently the Chairman of the
society, to promote technical and professional education in
the rural areas. Over the years, the society has expanded its
operations significantly and presently has 10 institutions under
its fold located in its integrated campus -- three campuses spread
over 125 acres of land -- in Karjat, Raigad district, Maharashtra.
The society offers numerous courses in the fields of engineering,
polytechnic, computer studies, pharmacy and management, with over
5,700 students studying in various institutes under its umbrella.
All the colleges under the society are affiliated to Mumbai
University and are approved by Directorate of Technical
Education, Maharashtra (DTE), University Grant Commission (UGC)
and All India Council for Technical Education (AICTE).
The key colleges owned by the society are Yadvrao Tasgaonkar
Institute of Engineering and Technology (YTIET - offering courses
in multiple streams of engineering and a management course),
Yadvrao Tasgaonkar Polytechnic (YTP), Yadvrao Tasgaonkar College
of Engineering and Management (YTCEM), and Yadvrao Tasgaonkar
Institute of Pharmacy (YTIP - Diploma and Degree).
Recent Results
The society reported a net loss of INR 12.01 crore on an operating
income of INR 24.58 crore for FY2009-10.
SHRI RADHA: CRISIL Assigns 'B' Rating to INR26.3MM Term Loan
------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the long-term bank
facilities of Shri Radha Raman Alloys Ltd.
Facilities Ratings
---------- -------
INR29.20 Million Cash Credit B/Stable (Assigned)
INR26.30 Million Term Loan B/Stable (Assigned)
INR8.50 Million Proposed Term Loan B/Stable (Assigned)
The rating reflects SRRAL's small scale of operations in the
highly fragmented steel industry, susceptibility to volatility in
prices of raw materials, and its weak financial risk profile
marked by below average net worth and high gearing. These rating
weaknesses are partially offset by the extensive experience of
SRRA's promoters in the steel industry.
Outlook: Stable
CRISIL believes that SRRAL will benefit from its improving
operating efficiencies over the medium term. The outlook may be
revised to 'Positive' if SRRAL reports a substantial increase in
revenues and profitability or greater integration of its
operations. Conversely, the outlook may be revised to 'Negative'
if SRRAL's financial risk profile deteriorates because of lower-
than-expected capacity utilisation, resulting in lower-than-
expected cash accruals and significant decline in profitability,
or a larger-than-expected debt-funded capital expenditure
programme.
About Shri Radha Raman
SRRAL, located in Sundergarh district, Orissa, manufactures mild
steel ingots. It started commercial operations in April 2009 with
a capacity of 13,500 metric tones per annum (mtpa). SRRAL is in
the process of expanding its capacity to 36,000 mtpa. The
expanded capacity is expected to be operational by June 2012.
SRRAL reported a net loss of INR0.6 million on net sales of
INR210.7 million for 2009-10 (refers to financial year, April 1 to
March 31).
SHRI THANGAM: ICRA Places 'LB+' Rating on INR10.07cr Bank Debts
---------------------------------------------------------------
ICRA has assigned 'LB+' rating to the INR 10.07 crore fund based
facilities and the INR 0.69 crore non-fund based facilities of
Shri Thangam Spinners India Private Limited. ICRA has also
assigned 'A4' rating to the INR 1.00 crore non-fund based
facilities of STSIPL.
The ratings factor in the Company's small scale of operations
restricting economies of scale and financial flexibility, the
intense competition in the highly fragmented industry restricting
pricing flexibility and vulnerability of the textile industry to
competition from low-cost countries. The ratings also take into
account the stretched financial profile characterized by continued
low profits, high gearing and weak coverage indicators. The
ratings take note of the experience of the promoters in the
textile business of over 25 years.
About Shri Thangam
Shri Thangam Spinners India (P) Ltd was incorporated in 2008 with
an installed capacity of 12,096 spindles. Before 2008, the
Company had been operating as a partnership firm. The promoters
have about 25 years of experience in the cotton yarn business.
STSIPL mainly caters to the markets in Kolkata and Tirupur
districts and has plans for exports to Bangladesh and China. The
Company's manufacturing facility is located at Coimbatore (Tamil
Nadu).
Recent Results
For the seven months ended October 31, 2010, STSIPL reported PAT
of INR0.3 crore on an operating income of INR12.6 crore (unaudited
results).
SRI KANDHAN: CRISIL Reaffirms 'P4' Ratings on Various Bank Debts
----------------------------------------------------------------
CRISIL has reaffirmed its bank loan ratings of 'P4' to the various
bank facilities of Sri Kandhan Rugs Exports Pvt. Ltd.
Facilities Ratings
---------- -------
INR50.00 Million Packing Credit P4 (Reaffirmed)
INR15.00 Million Foreign Bill Discounting P4 (Reaffirmed)
INR13.00 Million Proposed Short-Term Bank P4 (Reaffirmed)
Loan Facility
The rating reflects SKRE's below-average financial risk profile,
concentration in revenue profile, small scale of operations, and
large working capital requirements. These weaknesses are
partially offset by the benefits the company derives from the
industry experience of its management.
About Sri Kandhan Rugs
Set up in 1966 as a proprietorship firm by Mr. G. Sadaiyaraj, SKRE
was converted into a company in 1995. The company, based out of
Bhavani, Tamil Nadu, manufactures handloom floor mats,
tablecloths, napkins, bed linen, and curtains. SKRE has dyeing
capacities of 600 tonnes per annum, but out sources weaving
operations. Around 90 per cent of its revenues are from exports to
the US, Europe, Germany, and Malaysia.
SKRE reported a profit after tax (PAT) of INR0.032 million on net
sales of INR45 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR3 million on net sales
of INR53 million for 2008-09.
SHIV SHAKTI: CRISIL Assigns 'D' Rating to INR55.5 Mil. Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to the bank facilities of
Shiv Shakti Steel Pvt Ltd. The rating reflects instances of delay
by SSSPL in servicing its debt; the delays are on account of the
company's weak liquidity.
Facilities Ratings
---------- -------
INR104.5 Million Cash Credit D (Assigned)
INR55.5 Million Term Loan D (Assigned)
INR10.0 Million Bank Guarantee P5 (Assigned)
SSSPL is exposed to risks related to small scale of operations,
and to fragmentation and cyclicality in the steel industry. These
weaknesses are partially offset by the extensive industry
experience of SSSPL's promoters and the strategic location of its
plant.
SSSPL was incorporated in 2004 by Mr. K N Mithal and three other
directors. In October 2007, the company was taken over by the
Fairdeal group (owned by the Agarwal family). Currently, the day-
to-day management of the company is looked after by Mr. Anand
Shroff and Mr. Gaurav Jhunjhunwala. The company's manufacturing
facility in Raigarh (Chhattisgarh) has a capacity to produce
97,000 tonnes per annum (tpa) of sponge iron and 3,00,000 tpa of
washed coal.
SSSPL reported a profit after tax (PAT) of INR5.6 million on net
sales of INR659.6 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a net loss of INR1.7 million on
net sales of INR708.2 million for 2008-09.
TECHNOMAX BUILDING: ICRA Places 'LBB' Rating on INR15cr Term Loans
------------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR15 crore term loans/
fund based limits of Technomax Building Solution India Private
Limited. The outlook on the long-term rating is stable.
The rating takes into consideration the operational status of the
RMC and blue metal quarrying business of the company, the
favorable long term demand prospects for these products, and the
diversified customer base of the company. The ratings also
consider positively the longstanding experience of the promoters
in the construction sector and the synergy arising from catering
to a portion of the RMC/blue metal requirements of the group
entities. However, the rating is constrained by the small scale of
operations of the company, its limited track record in the RMC
business, and the competitive nature of the RMC and blue metal
industry characterized by low technological requirements and
limited entry barriers. The rating is also constrained by the
stretched capital structure of the company on the back of
predominantly debt-funded capital expenditure and further
acerbated by the significant working capital intensity common to
this industry.
About Technomax Building
Technomax Building Solution India Private Limited is a small scale
supplier of building materials viz., ready mix concrete, blue
metal aggregates, and artificial sand. The company was promoted
in June 2008 by Mr. Rangasami Raju, his son Mr. Deepak Raju,
Mr. Mounaswamy and Mr. A Durairaj in efforts to backward integrate
the existing construction business of the promoter family. The
group entities - M/s Samraj & Co and M/s Samraj Constructions -
undertake construction contracts, primarily in the buildings
segment, and have a significant track record of 27 years in the
construction industry.
Technomax has setup a Schwing Stetter RMC batching plant of
capacity 30 cubic metres per hr, and blue metal quarrying
operations of capacity around 2000 tonnes per day with a capital
expenditure of around INR 16.0 crore. The company caters to the
RMC and blue metal aggregates market and, to a smaller extent,
artificial sand (finely crushed blue metal) in and around
Coimbatore. Currently, Technomax is the only player offering
artificial sand in the Coimbatore region.
TRINITY ENGINEERS: CRISIL Assigns 'BB-' Rating to INR11.4MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Trinity Engineers Pvt Ltd.
Facilities Ratings
---------- -------
INR125.00 Million Cash Credit BB-/Stable (Assigned)
INR11.40 Million Long Term Loan BB-/Stable (Assigned)
INR27.50 Million Working Capital BB-/Stable (Assigned)
Demand Loan
INR65.00 Million Bill Discounting P4+ (Assigned)
INR50.00 Million Letter of Credit P4+ (Assigned)
The ratings reflect TEPL's weak financial risk profile marked by a
small net worth, a high gearing, weak debt protection metrics, and
depressed cash accruals. The ratings also factor in the company's
large working capital requirements, vulnerability of its operating
margin to volatility in raw material prices, and exposure to
cyclicality in demand from the end-user industries. These rating
weaknesses are partially offset by the benefits that TEPL derives
from its promoters' extensive experience in the forgings industry,
and established relationships with its customers.
Outlook: Stable
CRISIL believes that TEPL will scale up its operations over the
medium term, backed by improved demand from the end-user
industries. The company's financial risk profile is, however,
expected to remain constrained by its highly leveraged capital
structure. The outlook may be revised to 'Positive' if TEPL's
capital structure improves significantly, either because of more-
than-expected cash accruals or fresh equity infusion by the
company's promoters. Conversely, the outlook may be revised to
'Negative' if TEPL's financial risk profile, particularly its
liquidity, deteriorates because of larger-than-expected
incremental working capital requirements, or if the company
undertakes a larger-than-expected, debt-funded capital expenditure
programme.
About Trinity Engineers
Incorporated in 1972, TEPL manufactures forgings and machined
components for commercial vehicles with capacity of 30,000 tonnes
per annum. The company's product profile comprises 450 different
components. TEPL's plant in industrial area of Chinchwad
(Maharashtra) is located close to large auto companies such as
Tata Motors Ltd and Force Motors Ltd etc.
TEPL reported a profit after tax (PAT) of INR1.04 million on net
sales of INR1160.5 million for 2009-10 (refers to financial year,
April 1 to March 31), against a loss of INR392.2 million on net
sales of INR1072.6 million for 2008-09.
VENKRAFT PAPER: CRISIL Reaffirms 'BB+' Rating on Long Term Loans
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Venkraft Paper Mills
Pvt Ltd, part of the Venkraft group, continue to reflect the
Venkraft group's exposure to risks related to the high level of
fragmentation and cyclical nature of the industrial paper
industry, high gearing, and working-capital-intensive operations.
The impact of these weaknesses is mitigated by the extensive
industry experience of the Venkraft group's promoters, and the
expected improvement in the group's revenues and profitability on
the back of its expanded capacity.
Facilities Ratings
---------- -------
INR234.60 Million Long-Term Loans BB+/Stable (Reaffirmed)
INR152.50 Million Cash Credit BB+/Stable (Reaffirmed)
INR7.50 Million Letter of Credit P4+ (Reaffirmed)
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of VPML and JR Packages Pvt Ltd, together
referred to, herein, as the Venkraft group. This is because both
these companies are part of the JR group and operate under the
same management. Furthermore, the businesses of both these
companies are interdependent, with VPML supplying a major part of
JRPL's raw material requirements. Also, JRPL has guaranteed part
of VPML's term debt facilities.
Outlook: Stable
CRISIL believes that the Venkraft group's business risk profile
will benefit over the medium term, supported by its expanded
capacity, improved product profile, and the favorable demand
outlook for the paper industry. CRISIL also believes that the
Venkraft group's gearing and debt protection metrics will
gradually improve, supported by higher accruals and scheduled debt
repayments. The outlook may be revised to 'Positive' in case of
higher-than-expected operating performance following the
stabilization of operations at its new unit, improvement in its
liquidity, and better-than-expected improvement in its gearing and
debt protection metrics. Conversely, the outlook may be revised to
'Negative' if the Venkraft group faces difficulty in stabilizing
its expanded operations, or if the group undertakes further debt-
funded capital expenditure, thereby preventing the expected
improvement in its financial risk profile.
About Venkraft Paper
VPML manufactures and sells kraft paper. The company was
incorporated in 2004 as part of the JR group, primarily to
facilitate backward integration for the corrugated box
manufacturing company JRPL (incorporated in 1991). The JR group
companies are promoted by Mr. M Ramamurthy (chairman), his wife
Mrs. Jaya Ramamurthy, and sons, Mr. R Subash Chandru (managing
director) and Mr. R Sarath. In January 2011, VPML commissioned its
new unit in Hosur (nearby its existing unit) with a production
capacity of 200 tonnes per day (tpd); along with upgraded
facilities at its existing unit, the company's total production
capacity is currently 300 tpd (against a capacity of 55 tpd as on
March 31, 2010). The total project cost for setting up the new
unit was around INR419 million, funded through long-term loans of
INR310 million and the balance through promoters' contribution.
For 2009-10 (refers to financial year, April 1 to March 31), VPML
reported a standalone net profit of INR13.5 million on net
revenues of INR294.0 million, against a net profit of INR10.9
million on net revenues of INR248.6 million in 2008-09. On a
consolidated basis, for 2009-10, the Venkraft group reported a net
profit of INR21.1 million (INR18.9 million in 2008-09) on net
revenues of INR379.2 million (INR351.0 million).
WESTSIDE HOTELS: ICRA Assigns 'LB' Rating to INR18cr Term Loans
---------------------------------------------------------------
ICRA has assigned an 'LB' rating on the long-term scale to the
INR18 crore, term loans and the INR0.50 crore, fund-based limits
of Westside Hotels and Resorts Private Limited.
The rating takes into account the high capital cost of WHRPL's
hotel property; its limited earning capacity and consequent
inadequacy of cash flows in relation to its debt servicing
obligations, resulting in irregularities in the company's debt
servicing obligations. The rating is further constrained by the
limited operational track record of the promoter group in the
hotel industry, which restricts its ability to compete with
larger, established chains of hotels; single property
concentration risk, resulting in complete dependence of the
company on the Chandigarh tri-city hospitality market; and
significantly high project cost, which has adversely affected the
project feasibility indicators. The rating, however, derives
strength from the favorable location of WHRPL's hotel property in
proximity to the key demand drivers of Chandigarh tri-city;
current favorable demand-supply scenario in the Chandigarh
tri-city; stability in revenues rendered by steady occupancies
throughout the year; repeat business from reputed corporate
clients as well as the banqueting and conferencing segment; and
the demonstrated support of the promoters in the form of infusion
of additional capital to meet cash flow mismatches.
In ICRA's view, the key rating sensitivities are the ability of
the company to maintain its operating metrics (occupancy and
ARRs); and improve its performance further in the conferencing
business thereby generating adequate cash flows to meet its debt
servicing obligations.
About Westside Hotels
Incorporated in October 2005, WHRPL is a closely held company that
owns and operates a mid-scale hotel property in Panchkula2
(Chandigarh). The hotel property, with an inventory of 32 rooms,
commenced commercial operations in December 2008 and is being
operated under the company's own brand name - Hotel Western
Court.
=================
I N D O N E S I A
=================
GARUDA INDONESIA: To Spend IPO Funds on New Airplanes
-----------------------------------------------------
The Jakarta Post reports that PT Garuda Indonesia plans to
purchase 57 new airplanes with funds raised through their initial
public offering (IPO) in an effort to expand their business.
The Post relates that PT. Garuda Indonesia President Director
Emirsyah Satar conveyed the plans during the listing of the
company's stocks at the Indonesian Stock Exchange (BEI) on
Feb. 11.
According to the Post, Emir said the IDR3.3 trillion (US$369.6
million) raised through the IPO would be spent on adding 57
airplanes to the current 86 airplanes, increasing the fleet to 153
airplanes by 2015.
The expansion was necessary amid efforts to improve the quality of
service and to cater to the opening of new flight routes as well
as flight frequencies to local and foreign destinations.
Garuda plans to buy an Airbus 330 and Boeing 737-800 NG to cut
maintenance costs. Meanwhile, in order to improve service, the
company will develop an onboard-immigration system to make it
easier for clients to manage immigration matters.
Garuda, which received IDR1 trillion from the government in 2006
to help it keep flying, has been in debt restructuring talks since
2005. The Troubled Company Reporter-Asia Pacific reported on
Aug. 11, 2010, that the carrier completed the restructuring of
US$76 million of debts to state oil and gas company PT Pertamina.
Garuda had also completed a debt restructuring negotiation with
its biggest creditor, the state lender Bank Mandiri. In
January 2010, Bloomberg News said, the airline won bondholder
permission to restructure US$122 million of floating-rate notes.
The TCR-AP, citing The Financial Times, reported on Dec. 20, 2010,
that Garuda signed a deal with dozens of lenders to restructure
nearly US$500 million in debt. The FT said that the agreement,
inked in December 2010 in London after five years of tortuous
negotiations with the European Credit Agency and more than 20
commercial creditors, covers debts dating back 15 years.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
LIPPO KARAWACI: Moody's Affirms 'B1' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has affirmed the B1 corporate family
rating on PT Lippo Karawaci Tbk and the B1 senior unsecured rating
on its guaranteed US$ notes.
The outlook for both ratings is stable.
The ratings affirmation follows LK's proposal to re-open its US$
notes (due 2015, issued by Sigma Capital Pte. Ltd., and guaranteed
by LK) to refinance its existing debt, including US$66.2 million
in notes maturing in March 2011.
The additional notes issuance will be subject to the same terms
and conditions as the existing US$270.6 million notes due in 2015.
"The issuance will not affect LK's debt leverage as the proceeds
will be used entirely for refinancing," says Kaven Tsang, a
Moody's AVP/Analyst.
"At the same time, it will improve the company's liquidity and
lengthen its debt maturity profile," adds Tsang, who is also
Moody's lead analyst for LK.
The issue follows the company's US$265 million rights issue in
December 2010, which enhanced LK's liquidity and capital
structure, bringing adjusted debt/capitalization down to around
37% as of end-2010, from 40.2% as of end-2009.
Nevertheless, Moody's expects LK to continue raising fund in the
next two years to proceed with its planned investments and capex
for the development of hospitals and retail malls. As a result,
its projected credit metrics -- EBITDA interest coverage of 2-2.5x
-- remains appropriate for its B1 ratings.
The B1 ratings are also constrained by the company's material
exposure to industry cyclicality and the high development and
execution risks associated with its core property development
business (responsible for around half the company's sales), as
well as its rapid expansion plan for the healthcare business.
The stable outlook reflects Moody's expectation that LK will
maintain a stable capital structure and sufficient liquidity for
its business development.
Upward rating pressure could emerge if LK's business plans are
successful, leading to sustained improvement in sales performance
and cash flow, such that EBITDA interest coverage rises above 3.5-
4.0x and adjusted debt/capitalization is maintained below 40%.
Downgrade pressure could emerge if LK's financial and liquidity
profiles weaken due to 1) the company's failure to carry out its
business plans; 2) its aggressive debt funded expansion; 3)
deterioration in the property market beyond expectations; and 4) a
material depreciation in the rupiah, which would increase the
company's debt-servicing obligations.
Moody's considers EBITDA interest coverage consistently below 2.0x
and adjusted debt/capitalization rising above 50% as signals for a
downgrade.
The last rating action on LK was taken on April 9, 2010 when
Moody's assigned a B1 senior unsecured rating to the US$ bonds
issued by Sigma Capital Pte. Ltd. and guaranteed by LK.
LIPPO KARAWACI: S&P Assigns 'B+' Rating to US$125 Mil. Notes
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' issue rating
to the proposed issue of US$125 million in senior unsecured notes
due 2015 by Sigma Capital Pte Ltd., a fully owned special purpose
vehicle of PT Lippo Karawaci Tbk. (B+/Stable/--). Lippo Karawaci,
an Indonesia-based real estate developer, unconditionally and
irrevocably guarantees the notes. The company will use the
proceeds to repay US$66.2 million of its 2011 notes, loans
totaling US$49.8 million from Bank Negara Indonesia, and US$9
million in accrued interest and transaction fees and expenses.
The proposed issue could allow Lippo Karawaci to ease its debt
maturity profile. If the transaction is completed, the company's
debt profile would comprise about US$395 million in senior
unsecured notes due 2015 and about US$1.3 million in secured debt
owed to Bank Agroniaga.
As at Dec. 31, 2010, Lippo Karawaci had cash and cash equivalents
of Indonesian rupiah 1.70 trillion (about US$190 million). This
amount is adequate to cover annual interest on the 2015 notes that
S&P estimate at US$36 million-US$40 million.
For the fiscal year ended Dec. 31, 2010, Lippo Karawaci's ratio of
lease-adjusted debt to EBITDA was 4.5x. S&P expects the ratio to
remain below 5x in the next 12-18 months. S&P could lower the
rating on Lippo Karawaci, however, if the company's property
development or healthcare businesses slow down significantly or if
a change in the competitive environment erodes its market
position, resulting in credit measures deteriorating materially,
such that the ratio of lease-adjusted debt to EBITDA exceeds 5.5x
on a sustainable basis.
* Moody's Publishes 2001 Sovereign Report on Indonesia
------------------------------------------------------
Moody's Investors Service has published its 2011 sovereign report
on Indonesia, which provides a methodological assessment of the
country's Ba1 foreign- and local-currency issuer rating and stable
outlook.
Rationale for the Rating:
1. Indonesia's prospects for steady economic growth and price
stability are reasonably sound, although in the near term
supply-side price pressures and capital inflow challenges will
remain elevated. Meanwhile, policy and administrative reforms
are improving investment prospects and attracting greater
foreign direct investment.
2. Appropriate policy management has ably steered the economy
through the global economic crisis, but increasingly
competitive local politics and shortcomings in governance
weigh on institutional reforms.
3. Improved foreign currency reserve adequacy provides a stronger
buffer against external shocks. In addition, the ongoing
reduction in the sovereign debt burden is driving improvements
in the government's debt affordability. However, in
comparison to investment-grade rated peers, Indonesia remains
more dependent on non-resident -- and less stable -- sources
of financing.
4. The limited size of domestic institutional investors' assets
and the lack of depth in the domestic capital markets elevates
to some degree sovereign credit vulnerability to large shifts
in portfolio capital flows, but the creation of a bond
stabilization framework may start to alleviate such risks.
Rationale for the Outlook:
"The rating outlook is stable and balances prospects for further
improvements in sovereign credit metrics against several
uncertainties including ongoing shifts in the banking supervisory
framework and the twin threat of food-price-driven inflation and
speculative capital inflows," said Mr. Aninda Mitra, a Moody's
Vice President and Senior Analyst.
Mr. Mitra was speaking on the release of the annual sovereign
report on Indonesia on February 10, 2011.
He added that "the stable outlook also incorporates the gradual
pace of deepening in the country's capital markets and the recent
proposal for the creation of a bond stabilization framework. Over
the near to medium term these developments could enhance the
government's onshore debt finance-ability. And, if accompanied by
financial and price stability and robust FDI inflows, they may
provide an uplift to the sovereign rating toward an investment-
grade level."
What Could Change the Rating -- Up:
* Greater assurance of continued monetary and price stability and
soundness of bank supervision
* A gradual deepening of the local capital and credit markets that
support the government's onshore debt finance-ability
* Further evidence of sustained increases in foreign direct
investment which would be supportive of the external balance of
payments and economic growth prospects
What Could Change the Rating -- Down:
* Sustained loss of inflation control and monetary stability
* A large shock to the country's fiscal, debt, or foreign currency
reserve positions -- derived, for instance, from policy
mismanagement or a domestic political shock that results in deep
deterioration of resident and investor confidence.
Moody's last rating action on Indonesia was on January 17, 2011,
at which time the sovereign rating was upgraded to Ba1 with a
stable outlook, from Ba2 on review for upgrade.
=========
J A P A N
=========
HARVEST TRUST: Moody's Takes Rating Actions on Various Classes
--------------------------------------------------------------
Moody's Japan K.K has confirmed its rating on the Class C trust
certificate issued by Harvest Trust and downgraded its ratings on
the Class D through F trust certificates.
Details follow:
-- Class C, Confirmed at Baa2 (sf); previously on Nov 12, 2010
Baa2 (sf) Placed Under Review for Possible Downgrade
-- Class D, Downgraded to Ba3 (sf) from Ba2 (sf); previously on
Nov 12, 2010 Ba2 (sf) Placed Under Review for Possible
Downgrade
-- Class E, Downgraded to B1 (sf) from Ba3 (sf); previously on
Nov 12, 2010 Ba3 (sf) Placed Under Review for Possible
Downgrade
-- Class F, Downgraded to Caa2 (sf) from B3 (sf); previously on
Nov 12, 2010 B3 (sf) Placed Under Review for Possible
Downgrade
* Deal Name: Harvest Trust
* Class: Class A through G trust certificates
* Issue Amount (initial): JPY 53.3 billion
* Dividend: Floating
* Issue Date (initial): September 28, 2007
* Final Maturity Date: October, 2012
* Underlying Asset (initial): Eight non-recourse loans and three
specified bonds and cash
* Originator/Entrustor: Shinsei Bank, Limited
* Arranger: Shinsei Securities Co., Ltd.
Harvest Trust, effected in September 2007, represents the
securitization of eight non-recourse loans and three specified
bonds, with all 11 referred to as "the loans."
The Originator entrusted the loans to the Asset Trustee, and
received the Class A through G trust certificates, which it then
sold to investors. The trust certificates are rated by Moody's.
In this transaction, modified pro-rata principal payments are to
be made at maturity, as are prepayments resulting from the sale of
the underlying properties or refinancing of the loans.
Sequential payments from the most senior class are applied in the
event of amortization of the loans; recovery collection, in the
event of default; and fast pay, in the event of a breach of the
DSCR trigger.
The losses incurred by defaulting loans are allocated in reverse
sequential order from the most subordinate class of the trust
certificates.
Four of the loans have been paid down in full so far, and special
servicing for two of the defaulted loans has been completed, one
of which incurred a loss on the remaining principal balance as a
result of the special servicing.
Currently, five loans -- which are backed by office, residential,
and retail properties in Tokyo and its surrounding areas as well
as in Osaka -- are under special servicing.
Rating Rationale
The current rating action reflects these factors:
(1) Regarding the five specially serviced loans, Moody's has
confirmed the operating status of the underlying properties,
and the progress of special servicing activities. As a
result, Moody's re-assessed its recovery stress assumptions,
lowering them from approximately 27% to approximately 44%, 35%
for the weighted average, from their initial assumptions.
(2) In light of Moody's re-assessment, losses on the remaining
balance of the loans are highly likely and could affect the
Class F trust certificates negatively.
Moody's will continue to monitor the properties' operating status
and the progress of special-servicing activities.
Moody's did not receive or take into account any third party due
diligence reports on the underlying assets or financial
instruments related to the monitoring of this transaction in the
past six months.
JLOC 37: Moody's Changes Ratings on Various Classes of Notes
------------------------------------------------------------
Moody's Japan K.K has changed ratings on the Class A1 through D2
and Class X Notes issued by JLOC 37.
Details:
-- Class A1/A2, downgraded to Aa3 (sf) from Aa2 (sf);
previously, on January 13, 2011, Aa2 (sf) placed under review
for possible downgrade
-- Class B1/B2, downgraded to Ba1 (sf) from A3 (sf); previously,
on January 13, 2011, A3 (sf) placed under review for possible
downgrade
-- Class C1/C2, downgraded to Caa2 (sf) from B3 (sf);
previously, on January 13, 2011, B3 (sf) placed under review
for possible downgrade
-- Class D1/D2, confirmed at Caa3 (sf); previously, on January
13, 2011, Caa3 (sf) placed under review for possible
downgrade
-- Class X, downgraded to Aa3 (sf) from Aa2 (sf); previously, on
January 13, 2011, Aa2 (sf) placed under review for possible
downgrade
* Deal Name: JLOC37
* Class: Class A1 through D2 and Class X notes
* Issue Amount (initial): JPY 81.22 billion
* Dividend: Floating
* Issue Date (initial): July 11, 2007
* Final Maturity Date: January, 2015
* Underlying Asset (initial): 10 non-recourse loans backed by real
estate
* Originator: Morgan Stanley Japan Securities Co., Ltd. and
Morgan Stanley Japan Limited (as of the issue date)
* Arranger: Morgan Stanley Japan Securities Co., Ltd. (as of the
issue date)
JLOC 37, effected in July 2007, represents the securitization of
ten loans backed by real estate. The originator transferred the
ten loans to the issuer SPE, which issued the Class A1 through D2
and X notes and then sold them to investors. The notes are rated
by Moody's.
The underlying loans are classified as either component loans or
pooled loans. Component loans are further divided into senior and
junior components. The senior component and pooled loans will
secure the Class A1 through D2 and X notes.
Interest and principal collections from the pooled loans will be
used to make payments on the senior notes. Interest payments on
the notes will be made sequentially, while principal payments will
be made pro-rata. Principal collections from the underlying loans
(other than defaulted loans) will be used to pay down the Class A1
through D2 notes pro-rata.
Interest and principal collections from the component loans will
be used to pay down the senior and junior notes. Interest
payments on the senior and junior components will be made
sequentially, while principal payments will be made pro-rata.
Principal collections from the underlying loans (other than
defaulted loans) will be paid pro-rata, according to the
outstanding amount of the senior and junior components.
Interest and principal payments made on the senior component loans
will be used to pay the interest on and principal of the senior
notes in the same manner as the pooled loans: interest payments on
the notes will be made sequentially, while principal payments will
be made pro-rata. Principal collections from the senior component
(other than defaulted loans) will used to pay down the Class A1
through D2 notes pro-rata.
Five of the ten loans have been paid down in full thus far, so the
transaction is now backed by the remaining five loans. Four of
these are backed by office, residential, or hotel properties
located throughout Japan and are under special servicing. The
fifth is backed by an office building in central Tokyo and will
mature in November 2011.
Rating Rationale
The recovery of the loan backed by hotels outside of a major city
and under special servicing may well be lower than Moody's
assumptions in June 2009 (the last rating action on these notes),
in light of the type of property, location, and the special
servicer's actions. Moody's has thus re-assessed and lowered by
67% (from its initial estimates) its recovery assumptions.
Moody's has re-assessed and lowered by 37% its recovery
assumptions for the loan backed by office buildings in Tokyo and
Saitama and under special servicing, and by 38% for the loan
backed by office, residential, and hotel properties and under
special servicing.
One loan under special servicing is likely to be recovered in full
as a result of special servicing.
In this transaction, the principal collections from the underlying
loans on the maturity or prepayment date will be used to pay down
the notes pro-rata. Thus, in this rating action, Moody's is
incorporating the impact stemming from the pro-rata payments on
the loan backed by an office building in central Tokyo and
maturing in December 2011.
Moody's did not receive or take into account any third party due
diligence reports on the underlying assets or financial
instruments related to the monitoring of this transaction in the
past six months.
ORIX-NRL TRUST: S&P Affirms Ratings on Various Classes of Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its
ratings on the class C to G and class X trust certificates issued
under the ORIX-NRL Trust 16 transaction. The class A and class B
trust certificates were redeemed in March 2010 and June 2010,
respectively.
In 2010, the transaction's legal final maturity date, which was
originally set for September 2013 at the transaction's closing in
December 2007, was brought forward to March 2012. This change was
in accordance with the original trust agreement, which stipulated
that the transaction term could be shortened to reflect the
repayment status of the underlying loans. Recently, however, the
transaction agreement was amended, and the maturity date was
changed back to the original maturity date accordingly.
S&P affirmed its ratings on the class C to G and class X trust
certificates because S&P believes that the changes that were made
to the trust agreement, including the extension of the
transaction's legal final maturity date, will have no material
effect on the prospects for principal and interest payments to the
trust certificates.
ORIX-NRL Trust 16 is a multiborrower commercial mortgage-backed
securities transaction. The trust certificates were initially
secured by two loans and one specified bond ("tokutei shasai")
extended to three obligors that were originally backed by 22 real
estate certificates and real estate properties. The transaction
was arranged by ORIX Corp., and ORIX Asset Management & Loan
Services Corp. is the transaction servicer.
The ratings address the ultimate repayment of principal and full
payment of interest by the transaction's legal final maturity date
for the class C to G trust certificates, and the timely payment of
available interest for the interest-only class X certificates.
Ratings Affirmed
ORIX-NRL Trust 16
JPY19.0 billion trust certificates due September 2013
Class Rating Initial issue amount
----- ------ --------------------
C AAA (sf) JPY1.9 bil.
D A- (sf) JPY1.7 bil.
E BB (sf) JPY0.6 bil.
F B- (sf) JPY0.6 bil.
G CCC+ (sf) JPY0.3 bil.
X* AAA (sf) JPY19.0 bil. (initial notional principal)
* Interest only
Classes A and B have already been redeemed.
====================
N E W Z E A L A N D
====================
ALLIED NATIONWIDE: S&P Withdraws 'D/D' Counterparty Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'D/D'
counterparty credit and issue credit ratings on New Zealand
finance company Allied Nationwide Finance Ltd. have been
withdrawn.
HANOVER FINANCE: Securities Commission to Give Update Next Month
----------------------------------------------------------------
The New Zealand Herald reports that the Securities Commission said
its investigation into Hanover Finance is gathering pace and it
hopes to be able to update the market next month.
According to the NZ Herald, a Securities Commission spokeswoman
said a number of senior managers and directors had been
interviewed and the commission planned to speak to more in the
coming weeks.
"Once we have completed our investigation we will obtain a case
assessment from our external lawyers for consideration by our
commission members," the NZ Herald quotes the spokesperson as
saying.
The NZ Herald relates that the commission said it had also
received a "significant volume" of documents from other sources
including directors and the Serious Fraud Office, to assist with
its investigation.
"We hope to receive more documents along those lines in the near
future," the spokeswoman said, according to the NZ Herald.
Current or former directors of one or all of the three Hanover
companies have included Mark Hotchin, Greg Muir, David Henry, Sir
Tipene O'Regan and Bruce Gordon.
According to the report, the commission said it hoped to be able
to offer another update in mid to late March - but was unable to
say whether it would be in a position to lay charges at that
point.
"We are intent on completing our investigation with appropriate
speed, but because this is obviously an investigation of
significant importance to the financial markets, the need for a
thorough investigation cannot be compromised," the commission
said, the NZ Herald relates.
The NZ Herald notes that a hearing on whether Mr. Hotchin will
have a ruling that froze his assets revoked was held in closed
court at the High Court at Auckland yesterday. Mr. Hotchin had
his New Zealand-based assets frozen by the Securities Commission
in December. It was the first time the commission had used such
force since the Securities Act was reformed.
Hanover Finance's investors in December 2008 voted in favor of the
company's Debt Restructure Proposals, including a plan to fully
repay NZ$552.6 million principal it owes over five years.
However, Hanover Finance said in November 2009 it is no longer
likely to fully repay investors under a debt restructuring plan
due to a deterioration in the commercial property development
market, a TCR-AP report on Nov. 12, 2009, said.
In December 2009, investors agreed to swap their Hanover interests
for shares in Allied Farmers Ltd.
About Hanover Finance Limited
Hanover Finance Limited -- http://www.hanover.co.nz/-- is
New Zealand's third-largest privately-owned finance company with
total assets of NZ$796 million at December 31, 2007. The company
was established in 1984 to provide finance to the rural sector
and began lending to property developers and investors in 1995.
The loan portfolio has been gradually downsized since 2006 as a
result of a more cautious approach to lending in the face of
retail funding constraints.
IRONGATE PROPERTY: In the Dark Over Bluestone Deal to Buy Contract
------------------------------------------------------------------
BusinessDesk reports that Irongate Property said it is in the dark
over the status of Bluestone Group's negotiation to buy the
St. Laurence-linked property investor's contracts.
The company said the firm hasn't been formally notified of the
negotiations between St Laurence receivers Barry Jordan and David
Vance of Deloitte and the Australian financial services group,
according to BusinessDesk. The company is aware negotiations have
been discontinued, and wasn't a party to them, it said.
As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 10, 2011, Interest.co.nz said Bluestone Capital Management
withdrawn from talks to buy two contracts to manage Irongate
Property from St. Laurence's receiver Deloitte.
The TCR-AP, citing BusinessDesk, reported on Dec. 14, 2010, that
Irongate Property said its trustee has declined to grant a waiver
for two breaches of its Trust Deed. BusinessDesk said the
breaches stemmed from valuation losses and provisions taken in
Irongate's first-half results. The company reported a net loss of
NZ$13.9 million in the six months ended Sept. 30, from a loss of
NZ$28.2 million a year earlier. Net rental income fell to
NZ$3.7 million from NZ$6.5 million.
According to BusinessDesk, Irongate has NZ$50 million of bonds due
to be repaid in May 2011 and in November said "in the current
environment a level of uncertainty still exists" about its ability
to make the payment.
About Irongate Property
Irongate Property Limited -- http://www.irongateproperty.co.nz--
is property investor with a diversified portfolio of property
related investments and operating activities including passive
investment property assets, properties held for future development
and interests in other property owning entities. Irongate
Property is one of the subsidiaries of St Laurence Finance Ltd.
WAIPAWA FINANCE: Investors Likely to Recover Less Than NZ1 Million
------------------------------------------------------------------
William Mace at The Dominion Post reports that investors in jailed
company director Warren Pickett's Waipawa Finance are likely to
see less than NZ$1 million of their initial NZ$8 million
investment back from the company's liquidation.
According to the Post, Judge Ronald Young said in a judgment
issued last week that the NZ$19 million owing to about 220
investors of Waipawa Finance and Waipawa Holdings was composed of
NZ$8 million of money deposited by investors and NZ$11 million of
interest they were promised.
The Post relates that despite Mr. Pickett's regular assurances to
investors that they were seeing returns of between 12.5 per cent
and 13.5 per cent, the money was never invested and interest had
never accrued.
"The interest component of the statements sent to the investors
was purely fictitious," the judge said.
Judge Young concluded therefore that investors' claims should not
include any accrued unpaid interest and that the recovered funds
from both failed businesses should be pooled, according to the
Post.
The Post relates that the judge said the liquidators had recovered
less than NZ$1 million and the latest liquidators' reports for the
two companies show pooled funds of NZ$890,461 on hand as at
August 9, 2010.
This represents a possible return of between 11 per cent and 12.5
per cent. Liquidators had previously told investors that between 9
cents and 19 cents in the dollar might be recoverable.
According to the report, Judge Young said in the judgment that the
amount available for final distribution rested on the potential
reimbursement of resident withholding tax by the Inland Revenue
Department. This amount and the timing of any repayment have not
yet been indicated by the IRD, the Post notes.
The Post says Mr. Pickett, then 63, was jailed for five years in
May 2009 after pleading guilty to eight fraud charges involving
NZ$3.2 million. He has to serve a minimum non parole period of
three years and three months, the Post adds.
Many of his investors are angry that assets owned by the Pickett
family trust, such as his NZ$1 million house sold in 2008, can't
be accessed by liquidators, the Post reports.
Located in the central Hawke's Bay, Waipawa Finance and Waipawa
Holdings, both owned by Mr. Pickett, went into voluntary
liquidation on August 6, 2008. Mr. Pickett is the sole director
of Waipawa Finance, holding 2,400 of its 6,000 shares and also is
the sole director and shareholder in Waipawa Holdings.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE AIRLINES: Ordered to Present Quarterly Financial Result
------------------------------------------------------------------
BusinessWorld Online reports that Philippine Airlines has been
ordered to present its quarterly financial statements for the past
year as its move to outsource its ground-based operations is
scrutinized by the government.
BusinessWorld relates that Gerry Rivera, president of the PAL
Employees Association (PALEA), which is composed of the airline's
ground crew employees, said the union requested for the documents
during a meeting at the Malacanan Palace on Monday.
"PAL was ordered to provide the financial statements by Monday. We
are expected to comment on the statement 15 days from then," Mr.
Rivera told BusinessWorld.
Meanwhile, BusinessWorld reports that Ma. Cielo C. Villaluna,
spokeswoman for PAL, said the airline rejected anew an amicable
settlement during the one and a half-hour discussion. Malacanang
called for the meeting to help resolve the row at PAL.
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.
SUMIFRU PHILIPPINES: Cuts Operations; 144 Workers Affected
----------------------------------------------------------
BusinessWorld Online reports that Sumifru Philippines Corp. has
abandoned plans to stop operations in North Cotabato province, a
Labor official said.
According to BusinessWorld, Sumifru Philippines, a joint venture
that includes Japanese giant Sumitomo Corp., previously sought to
stop its District 2 operations covering the towns of Antipas,
Magpet and Makilala because of low farm productivity, the ban
imposed by Iran on Philippine bananas, and diseases in banana
farms.
BusinessWorld relates that Feliciano R. Orihuela, Jr., regional
chief of the National Conciliation and Mediation Board, said
instead of shutting down at least 270 hectares (ha.), the firm
decided to cut operations covering 157 ha.
"The main problem there was low productivity from the apparent
indifferent attitude of the workers. We have threshed that out
and the management and the union are now in the process of coming
out with [their] first-ever collective bargaining agreement,"
BusinessWorld quotes Mr. Orihuela as saying.
Mr. Orihuela, as cited by BusinessWorld, said that to be a viable
venture, output should be at 3,500 boxes per hectare annually but
the company is not even breaching the break-even yield of 2,700
boxes per hectare per year. The average annual yield of the farms
was only 1,700-1,800 boxes per hectare, he added.
BusinessWorld, citing NCMB records, notes that the decision of
Sumifru Philippines to scale down operations affected 144 workers
out of the total 344.
Sumifru Philippines Corporation is a Japanese-backed banana
producer with plantations operating in Mindanao, Philippines.
===============
X X X X X X X X
===============
* S&P: Global Corporate Default Tally Remains at 2 in 2011
----------------------------------------------------------
The 2011 global corporate default tally remains at two issuers
after no issuers defaulted this week, said an article published
Feb. 11 by Standard & Poor's, titled "Global Corporate Default
Update (Feb. 4 - 10, 2011) (Premium)." By comparison, 17 global
corporate issuers had defaulted by this time last year (14 U.S.-
based issuers and one issuer each from Australia, Bahrain, and
Canada).
Both of this year's defaulters missed interest or principal
payments, which were among the top reasons for default last year.
Of the defaults in 2010, 28 defaults resulted from missed interest
or principal payments, 25 defaults resulted from Chapter 11 and
foreign bankruptcy filings, 23 from distressed exchanges, three
from receiverships, one from regulatory directives, and one from
administration.
Standard & Poor's baseline projection for the U.S. corporate
trailing 12-month speculative-grade default rate for December 2011
is 1.8%. (A total of 27 issuers would need to default during that
period to reach the forecast.)
This is another 1.47-percentage-point (or another 45%) decline
from 3.27% in December 2010. The rate of decline will remain
sharp, but somewhat slower than what was seen in the past 13
months. In S&P's optimistic default rate forecast scenario, the
economy and the financial markets improve more than expected. In
this scenario, S&P expects the default rate to be 1.3% (22
defaults). On the other hand, if the economic recovery stalls and
the financial markets deteriorate -- which is S&P's pessimistic
scenario -- S&P expects the default rate to be 3.5% (52 defaults)
by the end of 2011. S&P bases its forecasts on quantitative and
qualitative factors that it considers, including, but not limited
to, Standard & Poor's proprietary default model for the U.S.
corporate speculative-grade bond market. S&P updates its outlook
for the U.S. issuer-based corporate speculative-grade default rate
each quarter after analyzing the latest economic data and
expectations.
* BOND PRICING: For the Week February 7 to February 11, 2011
------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
ADVANCED ENERGY 9.50 01/04/2015 AUD 1.01
AINSWORTH GAME 8.00 12/31/2011 AUD 1.16
AMITY OIL LTD 10.00 10/31/2013 AUD 1.99
AMP GROUP FINANC 9.80 04/01/2019 NZD 1.00
AUST & NZ BANK 2.00 04/15/2018 AUD 74.25
BECTON PROP GR 9.50 06/30/2010 AUD 0.23
EXPORT FIN & INS 0.50 12/16/2019 AUD 61.82
EXPORT FIN & INS 0.50 06/15/2020 AUD 59.83
EXPORT FIN & INS 0.50 06/15/2020 AUD 58.40
HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.88
NEW S WALES TREA 1.00 09/02/2019 AUD 63.20
NEW S WALES TREA 0.50 09/14/2022 AUD 51.12
NEW S WALES TREA 0.50 10/07/2022 AUD 50.92
NEW S WALES TREA 0.50 10/28/2022 AUD 50.74
NEW S WALES TREA 0.50 11/18/2022 AUD 50.55
NEW S WALES TREA 0.50 12/16/2022 AUD 50.25
NEW S WALES TREA 0.50 12/16/2023 AUD 49.87
NEXUS AUSTRALIA 3.60 08/31/2017 AUD 71.26
NEXUS AUSTRALIA 3.60 08/31/2019 AUD 64.79
RESOLUTE MINING 12.00 12/31/2012 AUD 1.35
SUN RESOURCES NL 12.00 06/30/2011 AUD 0.45
SUNCORP METWAY I 6.75 09/23/2024 AUD 63.67
SUNCORP METWAY I 6.75 10/06/2026 AUD 70.74
TREAS CORP VICT 0.50 08/25/2022 AUD 51.71
TREAS CORP VICT 0.50 11/12/2030 AUD 33.87
VERO INSURANCE 6.15 09/07/2025 AUD 60.64
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 60.30
HONG KONG
---------
RESPARCS FUNDING 8.00 12/29/2049 USD 41.77
INDIA
-----
PUNJAB INFRA DB 0.40 10/15/2024 INR 25.68
PUNJAB INFRA DB 0.40 10/15/2025 INR 23.40
PUNJAB INFRA DB 0.40 10/15/2026 INR 21.36
PUNJAB INFRA DB 0.40 10/15/2027 INR 19.55
PUNJAB INFRA DB 0.40 10/15/2028 INR 17.91
PUNJAB INFRA DB 0.40 10/15/2029 INR 16.44
PUNJAB INFRA DB 0.40 10/15/2030 INR 15.13
PUNJAB INFRA DB 0.40 10/15/2031 INR 13.94
PUNJAB INFRA DB 0.40 10/15/2032 INR 12.88
PUNJAB INFRA DB 0.40 10/15/2033 INR 11.92
JAPAN
-----
AIFUL CORP 1.20 01/26/2012 USD 73.15
AIFUL CORP 1.99 03/23/2012 JPY 69.44
AIFUL CORP 1.22 04/20/2012 JPY 66.09
AIFUL CORP 1.74 05/28/2013 JPY 48.15
AIFUL CORP 1.99 10/19/2015 JPY 37.99
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 59.57
JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 59.07
SHINSEI BANK 5.62 12/29/2049 GBP 73.34
TAKEFUJI CORP 9.20 04/15/2011 USD 13.25
TAKEFUJI CORP 4.00 06/05/2022 USD 9.99
MALAYSIA
--------
ADVANCED SYNERY 2.00 01/26/2018 MYR 0.12
ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.29
CRESENDO CORP B 3.75 01/11/2016 MYR 1.28
DUTALAND BHD 6.00 04/11/2013 MYR 0.45
DUTALAND BHD 6.00 04/11/2013 MYR 0.71
EASTERN & ORIENT 8.00 07/25/2011 MYR 1.25
EASTERN & ORIENT 8.00 11/16/2019 MYR 1.21
LEBUHRAYA KAJANG 2.00 06/12/2019 MYR 47.73
MITHRIL BHD 3.00 04/05/2012 MYR 0.60
NAM FATT CORP 2.00 06/24/2011 MYR 0.11
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.37
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.52
PANTECH GROUP 7.00 12/21/2017 MYR 0.12
PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.54
REDTONE INTL 2.75 03/04/2020 MYR 0.08
RUBBEREX CORP 4.00 08/14/2012 MYR 0.93
SCOMI ENGINEERING 4.00 03/19/2013 MYR 0.99
SCOMI GROUP 4.00 12/14/2012 MYR 0.09
TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.55
TRC SYNERGY 5.00 01/20/2012 MYR 1.78
WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.28
YTL CEMENT BHD 5.00 11/10/2015 MYR 2.35
NEW ZEALAND
-----------
ALLIED FARMERS 9.60 11/15/2011 NZD 57.51
DORCHESTER PACIF 5.00 06/30/2013 NZD 72.01
FLETCHER BUI 8.50 03/15/2015 NZD 7.25
FLETCHER BUI 7.55 03/15/2011 NZD 8.00
GMT BOND ISSUER 7.75 06/19/2015 NZD 5.94
INFRATIL LTD 8.50 09/15/2013 NZD 8.20
INFRATIL LTD 8.50 11/15/2015 NZD 9.00
INFRATIL LTD 10.18 12/29/2049 NZD 62.50
KIWI INCOME PROP 8.95 12/20/2014 NZD 1.29
MARAC FINANCE 10.50 07/15/2013 NZD 1.04
SKY NETWORK TV 4.01 10/16/2016 NZD 5.97
ST LAURENCE PROP 9.25 07/15/2010 NZD 62.39
TOWER CAPITAL 8.50 04/15/2014 NZD 1.03
TRUSTPOWER LTD 8.50 09/15/2012 NZD 7.05
TRUSTPOWER LTD 8.50 03/15/2014 NZD 6.95
TRUSTPOWER LTD 7.60 12/15/2014 NZD 1.02
TRUSTPOWER LTD 8.60 12/15/2016 NZD 1.04
UNI OF CANTERBUR 7.25 12/15/2019 NZD 0.99
VECTOR LTD 8.00 06/15/2012 NZD 7.10
VECTOR LTD 8.00 10/15/2014 NZD 1.06
SINGAPORE
---------
CAPITAMALLS ASIA 1.00 01/21/2012 SGD 0.99
CAPITAMALLS ASIA 2.15 01/21/2014 SGD 0.99
DAVOMAS INTL 5.50 12/08/2014 USD 74.34
EQUINOX OFFSHORE 20.00 10/13/2011 USD 71.06
NEXUS 1 PTE LTD 10.50 03/07/2012 USD 1.01
UNITED ENG LTD 1.00 03/03/2014 SGD 1.82
WBL CORPORATION 2.50 06/10/2014 SGD 1.79
SOUTH KOREA
-----------
BUSAN SOLOMON MU 8.50 10/29/2014 KRW 10.19
DAEWOO MTR SALES 6.55 03/17/2011 KRW 51.82
HIMART 1ST ABS 4.71 08/31/2013 KRW 11.09
HOPE KOD 1ST 8.50 06/30/2012 KRW 32.30
HOPE KOD 2ND 15.00 08/21/2012 KRW 30.92
HOPE KOD 3RD 15.00 09/30/2012 KRW 34.81
HOPE KOD 4TH 15.00 12/29/2012 KRW 31.06
HOPE KOD 6TH 15.00 03/10/2013 KRW 34.90
HYUNDAI SWISS BK 8.50 07/15/2014 KRW 2.47
HYUNDAI SWISS S 7.90 07/23/2015 KRW 1.12
IBK 12TH ABS 25.00 06/24/2011 KRW 67.38
IBK 16TH ABS 25.00 09/24/2012 KRW 62.36
IBK 16TH ABS 25.00 09/24/2012 KRW 18.18
IBK 17TH ABS 25.00 12/29/2012 KRW 58.68
JEIL SAVINGS BK 8.50 01/22/2015 KRW 1.18
KB 11TH ABS 23.00 07/03/2011 KRW 65.82
KB 12TH ABS 25.00 01/21/2012 KRW 67.84
KB 13TH ABS 25.00 07/02/2012 KRW 61.24
KB 14TH ABS 23.00 01/04/2013 KRW 58.89
KDB 5TH ABS SEC SPC0 15.00 12/13/2012 KRW 61.52
KDB 6TH ABS 20.00 12/02/2019 KRW 62.87
KEB 17TH ABS 20.00 12/28/2011 KRW 51.32
KOREA LINE CO 6.80 11/30/2011 KRW 67.06
KOREA LINE CO 6.80 11/30/2011 KRW 51.80
NACF 15TH ABS S 25.00 03/18/2011 KRW 68.45
ONE KDB 1ST ABS 7.60 06/13/2011 KRW 39.72
OSAN MYTOWN 1ST 5.64 04/16/2012 KRW 68.31
OSAN MYTOWN 2ND 5.64 04/16/2012 KRW 68.10
SAM HO INTL 6.32 03/28/2011 KRW 71.76
SHINHAN 2ND SEC 25.00 06/11/2011 KRW 29.79
SINBO 1ST ABS 15.00 07/22/2013 KRW 30.54
SINBO 2ND ABS 15.00 08/26/2013 KRW 32.57
SINBO 3RD ABS 15.00 09/30/2013 KRW 32.18
SINBO 4TH ABS 15.00 12/16/2013 KRW 30.66
SINBO 5TH ABS 15.00 02/23/2014 KRW 29.34
SINBO CO 1ST ABS 15.00 03/15/2014 KRW 28.98
SINGOK ABS 7.50 06/18/2011 KRW 74.42
SINGOK NS ABS 7.50 06/27/2011 KRW 74.20
SOLOMON SAVINGS 8.50 10/29/2014 KRW 70.21
THAILAND
--------
THAILAND GOVT 0.75 01/04/2022 THB 70.64
VIETNAM
--------
VIETNAM MACHINE 9.20 06/06/2017 VND 74.61
VIETNAM SHIPBUIL 9.00 04/13/2017 VND 61.66
VIETNAM-PAR 4.00 03/12/2028 USD 73.00
*********
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 ***