/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/110217.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, February 17, 2011, Vol. 14, No. 34 Headlines A U S T R A L I A BURRUP FERTILISERS: Regulator Reviews Wesfarmers Ltd's Interest PERLE PTY: Creditors Mull Class Action Over Liquidation H O N G K O N G LEPI CHINA: Court Enters Wind-Up Order LINKS INTERNATIONAL: Court Enters Wind-Up Order METZLER INTERNATIONAL: Creditors' Proofs of Debt Due February 24 SUNTOP PHARMACEUTICAL: Court Enters Wind-Up Order TINA GARMENT: Court Enters Wind-Up Order WIN CHAMP: Court Enters Wind-Up Order I N D I A A. C. STRIPS: CRISIL Assigns 'B+' Rating to INR100MM Cash Credit AIR INDIA: Seeks More Funds from Government AUTO INTERNATIONAL: CRISIL Raises Ratings on Various Debts to 'BB' CHINTELS INDIA: CRISIL Rates INR300 Mil. Term Loan at 'B' HPC ELECTRICALS: CRISIL Assigns 'BB' Rating to INR35MM Cash Credit INNOVATIVE INFRADEVELOPERS: CRISIL Rates INR600MM Loan at 'B' N G REALTY: CRISIL Rates INR1,150 Million Term Loan at 'B+' PASHANKAR AUTO: CRISIL Assigns 'B+' Rating to INR120MM Term Loan PITAMBER FLOUR: CRISIL Assigns 'BB' Rating to INR7-Mil. Term Loan PRITIKA AUTOCAST: CRISIL Puts 'B+' Rating on INR74MM Cash Credit R.P. BASMATI: CRISIL Reaffirms 'BB' Rating on INR41MM Term Loan SAMRAKSHANA ELECTRICALS: CRISIL Reaffirms 'D' Term Loan Rating SHRI PARIYUR: Fitch Puts 'B-' Rating on Non-Monitored Category SREE DHANYA: Fitch Puts 'B+' Rating on Non-Monitored Category SUPER TEX: CRISIL Assigns 'BB' Rating to INR85.8 Mil. LT Loan XENITIS INFOTECH: Fitch Cuts National Long-Term Rating to 'D' K O R E A DAEWOO ELECTRONICS: Creditors Extend Sale Deadline to April 7 HYUNDAI ENGINEERING: Court Rejects Hyundai Group's Appeal KOREA LINE: Owes Eagle Bulk US$7.3 Million KUMHO ASIANA: To Select Preferred Bidders in Mid-May * SOUTH KOREA: To Set Up KRW20-Mil. Fund to Help Troubled Banks M A L A Y S I A OCI BERHAD: Stay of Winding-up Order Expires SELOGA HOLDINGS: Posts MYR5.91MM Net Income in Qtr Ended Dec. 2010 SELOGA HOLDINGS: Chairman and Four Other Directors Resign N E W Z E A L A N D SOUTH CANTERBURY: Receivers Start Sale Process of Face Finance P H I L I P P I N E S PHILIPPINE AIRLINES: Union Denies Reaching Deal Over Outsourcing - - - - - ================= A U S T R A L I A ================= BURRUP FERTILISERS: Regulator Reviews Wesfarmers Ltd's Interest --------------------------------------------------------------- Reuters reports that Australian Competition and Consumer Commission (ACCC), Australia's competition watchdog, said it was reviewing a possible acquisition of assets owned by chemicals and fertiliser firm Burrup Fertilisers by conglomerate Wesfarmers Ltd. The ACCC said in a statement it was seeking comments from interested parties about the possible acquisition of all or part of Burrup by Wesfarmers, according to Reuters. The report relates that it was the first official confirmation of corporate interest in the assets, although local media have said that about 20 parties were looking at the business. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 20, 2010, The Australian said Burrup Fertilisers Pty Ltd has been placed into receivership with debts of about AU$800 million. ANZ Bank appointed PPB Advisory as receivers to Burrup Fertilisers. ANZ has also appointed the same receivers, PPB Advisory, over shares held by members of the Oswal Group in related company, Burrup Holdings. The bank is alleging "evidence of financial irregularities" as well as the usual default triggers relating to debt facilities established between 2002 and 2007. Headquartered in Karratha in Western Australia, Burrup Fertilisers Pty Ltd -- http://www.bfpl.com.au/-- is Australia's largest ammonium producer. The company has a production capacity of 850- tonnes of liquid ammonia a year. PERLE PTY: Creditors Mull Class Action Over Liquidation ------------------------------------------------------- Matt Deans, writing for Coffs Coast Advocate, reports that creditors owed more than AU$1.6 million by failed construction company Perle Pty Ltd are seeking legal action in the hope of filing a class action to recover their money. At a meeting on Feb. 15, out-of-pocket Coffs Harbour sub- contractors voted unanimously to have the financially troubled Sydney company wound up in liquidation, the Advocate says. According to the report, local trade companies affected by the company's collapse also expressed an interest in pursuing Housing NSW, and possibly the government's primary project contractors Bovis Lend Lease through the courts. The Advocate notes that legal advice has also been sought through Slater and Gordon Coffs Harbour to see if the sub-contractors have the grounds for a class action involving other creditors in the Illawarra and Sydney. "I believe there is enough information there to join the players in this debacle in a legal case," the Advocate quotes member for Coffs Harbour, Andrew Fraser, as saying. According to the Advocate, the development came after Housing Minister Frank Terenzini confirmed that the collapse of Perle had been referred to police for investigation "to see if there had been any breaches of the law." The Advocate discloses that statewide Perle has left debts of around AU$10 million after commencing government stimulus package projects, three of which involved Housing NSW unit developments in Coffs Harbour. The Advocate, citing a report handed down by the administrator Rogers Reidy, says that if creditors across NSW vote to liquidate the company that could see returns of five cents in the dollar. Another option on the table, says the Advocate, is for creditors to offer Perle a deed of contract and allow the company to complete its building projects. This the administrators believe would offer returns of 27 cents in the dollar, but after blockading the incomplete Harbour Drive worksite, the sub- contractors have held firm. The Advocate relates that Minister Terenzini said it had been agreed by some creditors that if the State Government moved in and covered the debts of the company it would set a dangerous precedent for the construction industry. "We reject outright the administrators 'opinion' that, in the spirit of the economic stimulus package, clients such as Housing NSW should pay in full the outstanding debt to creditors," the Advocate quotes Mr. Terenzini as saying. "Our decision not to pay out the subbies has nothing to do with stimulus -- it's based on long-standing and responsible Housing NSW policy." Perle Pty Ltd is a Sydney-based construction company. The company went into receivership in January 2011. ================ H O N G K O N G ================ LEPI CHINA: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on January 26, 2011, to wind up the operations of Lepi China Limited. The official receiver is E T O'Connell. LINKS INTERNATIONAL: Court Enters Wind-Up Order ----------------------------------------------- The High Court of Hong Kong entered an order on January 26, 2011, to wind up the operations of Links International Limited. The official receiver is E T O'Connell. METZLER INTERNATIONAL: Creditors' Proofs of Debt Due February 24 ---------------------------------------------------------------- Creditors of Metzler International (Asia) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by February 24, 2011, to be included in the company's dividend distribution. The company's liquidators are: Desmond Chung Seng Chiong Roderick John Sutton c/o Ferrier Hodgson Limited The Hong Kong Club Building, 14/F 3A Chater Road Central, Hong Kong SUNTOP PHARMACEUTICAL: Court Enters Wind-Up Order ------------------------------------------------- The High Court of Hong Kong entered an order on January 26, 2011, to wind up the operations of Suntop Pharmaceutical Limited. The official receiver is E T O'Connell. TINA GARMENT: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on January 26, 2011, to wind up the operations of Tina Garment Factory Limited. The official receiver is E T O'Connell. WIN CHAMP: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on January 26, 2011, to wind up the operations of Win Champ Asia Limited. The official receiver is E T O'Connell. ========= I N D I A ========= A. C. STRIPS: CRISIL Assigns 'B+' Rating to INR100MM Cash Credit ---------------------------------------------------------------- CRISIL has assigned its 'B+/Stable' ratings to the bank facilities of A. C. Strips Pvt Ltd. Facilities Ratings ---------- ------- INR100 Million Cash Credit B+/Stable (Assigned) The ratings reflect ACSPL's below-average financial risk profile, marked by moderate debt protection metrics, and high gearing, and the susceptibility of its margins to volatility in raw material prices. These weaknesses are partially offset by the extensive experience of ACSPL's promoters in the thermo-mechanically-treated (TMT) bar business. Outlook: Stable CRISIL believes that ASCPL will benefit over the medium term from its promoters' industry experience. The profitability of the company is, however, expected to remain susceptible to fluctuations in raw material prices. The outlook may be revised to 'Positive' in case of substantial improvement in its financial risk profile, most likely through strong growth in sales, increased profitability and capital infusion by promoters. Conversely, the outlook may be revised to 'Negative' in case of a decline in ACSPL's sales or operating margin, leading to a weaker financial risk profile. About A. C. Strips ACSPL was incorporated up in 1995 by the Surana family of Raipur (Chhattisgarh). The company manufactures TMT bars. It has a licensed capacity of 20,000 tonnes per annum at its facility in Urla (Raipur). The company recently upgraded its plant from a fuel-oil-based furnace to a cold gasification plant, which is more environmental friendly. ACSPL sells its products under the brand AC Turbo TMT mainly in Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh. ACSPL reported a profit after tax (PAT) of INR1.4 million on net sales of INR 573 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR0.6 million on net sales of INR267 million for the previous year. AIR INDIA: Seeks More Funds from Government ------------------------------------------- Vinay Kumar at The Hindu reports that the Civil Aviation Ministry has sought more budgetary support for the ailing national carrier, Air India, claiming that about 65% of the turnaround plan of the airline has been implemented. According to The Hindu, the issue of additional support was raised by Civil Aviation Minister Vayalar Ravi at a meeting in India on Wednesday with Finance Minister Pranab Mukherjee, during which they discussed issues pertaining to the aviation sector in the upcoming Budget. "We informed him that whatever decision had been taken, we have implemented almost 65 per cent of it and something more remains to be implemented," Mr. Ravi told journalists after the hour-long meeting, according to The Hindu. "I have asked for little more money, I cannot tell you how much," Mr. Ravi said, when asked whether the Ministry has asked for additional equity infusion of INR2,000 crore. The Hindu relates Mr. Ravi said the government would help Air India but it would come "depending on how we are progressing step by step. So it means we have to earn more money and gradually reach the break-even point." Air India has so far received a total of INR2,000 crore as equity in two tranches. The Hindu, citing official sources, says a provision for at least INR1,200 crore worth of equity could be made in the 2011-12 budget and another tranche could be given in the supplementary budget later this year. About Air India Air India -- http://www.airindia.com/-- transports passengers throughout India and to more than 40 destinations throughout the world. Affiliate Air India Express operates as a low-fare carrier, mainly between India and destinations in the Middle East, and Air India Cargo provides freight transportation. The government of India has merged Air India with another state- controlled carrier, Indian Airlines, which has focused on domestic routes. The combined airline, part of a new holding company called National Aviation Company of India, uses the Air India brand. The new Air India and its affiliates have a fleet of more than 110 aircraft altogether. * * * The Troubled Company Reporter-Asia Pacific, citing the Hindustan Times, reported on June 19, 2009, that Air India has been bleeding cash due to excess capacity, lower yield, a drop in passenger numbers, an increase in fuel prices and the effects of the global slowdown. The carrier incurred net losses of INR2,226.16 crore in 2007-08 and INR5,548 crore in 2008-09. Air India is estimated to have lost INR54 billion in the fiscal year ended March 31, 2010, according to The Wall Street Journal. The TCR-AP, citing livemint.com, reported on July 27, 2010, that Air India unveiled a turnaround plan that envisages the airline reaching operational break-even and wiping out the INR14,000 crore of accumulated losses and INR18,000 crore of debt on its balance sheet by 2014-15. The plan includes raising the company's fleet strength to as many as 275 planes from 148 in five years. Air India Chairman and Managing Director Arvind Jadhav said the new 100-page turnaround plan for 2010-14, which ruled out any job cuts or wage reductions, was approved by the board and would be adopted after incorporating suggestions by representatives of the airline's 33,500 employees. AUTO INTERNATIONAL: CRISIL Raises Ratings on Various Debts to 'BB' ------------------------------------------------------------------ CRISIL has upgraded its rating on the long-term bank facilities of Auto International to 'BB/Stable' from 'BB-/Stable'. Facilities Ratings ---------- ------- INR50.0 Million Cash Credit Limit BB/Stable (Upgrade from BB-/Stable) INR36.0 Million Term Loan BB/Stable (Upgrade from BB-/Stable) INR2.5 Million Standby Line of BB/Stable(Upgrade from Credit BB-/Stable) The rating upgrade reflects the improvement in AI's capital structure and gearing, on account of regular equity infusion. The firm's gearing reduced to 1.39 times as on March 31, 2010 from 1.92 times as on March 31, 2009. CRISIL believes that AI's gearing will remain moderate, in the range of 1.4 to 1.9 times, over the medium term. AI's net cash accruals, and, consequently, its net cash accruals to total debt ratio, are also expected to improve, owing to the increasing scale of its operations. AI's liquidity remains moderate, marked by adequate cash accruals vis-�-vis debt repayment obligations, and moderate bank limit utilization. The rating reflects AI's average gearing, small net worth, average debt protection metrics, and its exposure to risks related to product and customer concentration in its revenue profile. These rating weaknesses are partially offset by the experience of AI's promoters in forging and machining industry. Outlook: Stable CRISIL believes that AI will maintain its improved financial risk profile over the medium term, supported by improvement in gearing and debt protection metrics. The outlook may be revised to 'Positive' in case of significant increase in AI's scale of operations and profitability or reduction in revenue concentration. Conversely, the outlook may be revised to 'Negative' if the firm's operating income or profitability declines, or if the firm undertakes a larger-than-expected debt- funded capital expenditure programme. About Auto International AI was established as a partnership firm by six partners. Following a family partition in 2007-08 (refers to financial year, April 1 to March 31), Mr. Rajan Mittal and Mr. Pramod Gupta became owners and other partners retired from the firm. AI undertakes forging and machining of components, which are mainly used in automobile industry; its facilities are in Ludhiana (Punjab). Until 2006-07, the firm was supplying machined components only to International Tractor Ltd. As part of a backward integration programme, AI diversified into forged components, and set up six drop-forged hammer units. The production capacity of the forging unit is around 700 tonnes per month while that of the machining unit is around 60,000 pieces per month. AI reported a book profit of INR2.9 million on net sales of INR281 million for 2009-10, against a book profit of INR2.5 million on net sales of INR206 million for 2008-09. CHINTELS INDIA: CRISIL Rates INR300 Mil. Term Loan at 'B' --------------------------------------------------------- CRISIL has assigned its 'B/Stable' rating to the proposed bank facility of Chintels India Ltd. Facilities Ratings ---------- ------- INR300.0 Million Proposed Term Loan B/Stable (Assigned) The rating reflects CIL's exposure to funding- and saleability- related risks associated with its ongoing residential real estate project Chintels Serenity, and the company's short track record in the real estate development business. These rating weaknesses are partially offset by CIL's moderate financial risk profile marked by low gearing. Outlook: Stable CRISIL believe that CIL will scale up its operations gradually, supported by its experienced management team. The financial risk profile of the company is expected to remain moderate -- its net worth is expected to remain average and its gearing, low, over the medium term. The outlook may be revised to 'Positive' if CIL generates more-than-expected cash accruals, driven by significant improvement in profitability as a result of timely completion of ongoing projects. Conversely, the outlook may be revised to 'Negative' if CIL's debt servicing ability is adversely affected because of lesser-than-expected customer advances for its ongoing Chintels Serenity project. About Chintels India CIL, incorporated in 1985, is a part of the Chintel group, promoted and managed by Mr. Ashok Solomon and his family. The company commenced operations as a real estate consultant and a trader in agricultural land. In 2007, company entered into real estate development. Company is developing a 153-acre township in Gurgaon (Haryana) in joint venture with Sobha Developers Ltd (Sobha) and QVC Reality Company. CIL is also developing a group housing project, Chintels Serenity, in Gurgaon, with a total saleable area of 1.12 million square feet, for an investment of INR3407 million. The company will fund the project through term loan of INR300 million. CIL has already entered into a property development agreement (PDA) with land owners which are its group companies, Chintels Exports Pvt Ltd, Intels India Pvt Ltd, and Raj Kiran Pvt Ltd, and Mr. Ashok Solomon in his personal capacity. As per the agreement, CIL will purchase the land at INR1000 per square foot, amounting to INR938.1 million. CIL is proposing that the payment for land will happen after the full repayment of term loans contracted for the project. The project is expected to be launched by April 2011 and completed by April 2014. CIL reported a profit after tax (PAT) of INR32.9 million on net revenues of INR3.6 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR31.6 million on net revenues of INR6.5 million for 2008-09. HPC ELECTRICALS: CRISIL Assigns 'BB' Rating to INR35MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank facilities of HPC Electricals Ltd. Facilities Ratings ---------- ------- INR35.00 Million Cash Credit Limit BB /Stable (Assigned) INR75.00 Million Bank Guarantee P4+(Assigned) The ratings reflect HPC's small scale of operations, and working- capital-intensive operations. The ratings also factor in the company's exposure to risks related to the tender-based nature of its business, to intense competition in the transformers industry, and to geographical concentration in its revenue profile. These rating weaknesses are partially offset by HPC's moderate financial risk profile marked by a low gearing and moderate debt protection metrics. Outlook: Stable CRISIL believes that HPC's scale of operations will remain small, and its financial flexibility restricted by a small net worth, over the medium term. The outlook may be revised to 'Positive' if HPC scales up its operations substantially, and sustains it at the improved level, prudently manages its working capital management, and increases its net worth. Conversely, the outlook may be revised to 'Negative' if the company's liquidity weakens significantly, most likely because of large incremental working capital requirements, or operating margin declines resulting in lower-than-expected cash accruals. About HPC Electrical Set up in 1994 by two brothers, Mr. Jayaram Reddy and Mr. C V S R Krishna Reddy, HPC assembles and markets transformers, and also erects and commissions high-tension and low-tension electrical control panels that find application in power distribution. The company has a facility in Guntur (Andhra Pradesh), and has a monthly capacity to assemble 300 transformers. It supplies transformers and undertakes projects for various companies managed by Andhra Pradesh's state electricity boards (SEB), and also caters to the requirement of private parties, such as Reliance Communication Ltd. HPC reported a profit after tax (PAT) of INR8 million on net sales of INR163 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR14 million on net sales of INR173 million for 2008-09. INNOVATIVE INFRADEVELOPERS: CRISIL Rates INR600MM Loan at 'B' ------------------------------------------------------------- CRISIL has assigned its 'B/Stable/P4' ratings to the bank facilities of Innovative Infradevelopers Pvt Ltd. Facilities Ratings ---------- ------- INR600.00 Million Term Loan B/Stable (Assigned) INR29.0 Million Bank Guarantee P4 (Assigned) The ratings reflect IIPL's exposure to risks related to commissioning, and commencement of operations after completion, of its ongoing hotel-cum-commercial-complex project, and susceptibility to downturns in the real estate industry. The ratings also reflect the expected pressure on the occupancy rates, and relatively low average room rates, at IIPL's upcoming hotel; this is because of expectation of oversupply in the hospitality industry in Haryana over the medium term. These rating weaknesses are partially offset by the extensive experience of IIPL's operation and management (O&M) partner, the Hyatt group. Outlook: Stable CRISIL believes that IIPL will remain exposed to risks related to time and cost overruns in its ongoing project. The company's financial risk profile is expected to remain weak, marked by high gearing, over the medium term, because of its large, ongoing debt- funded capital expenditure (capex) programme. The outlook may be revised to 'Positive' if IIPL completes its project on time, without contracting more-than-expected quantum of debt, and increases its operating income and cash accruals. Conversely, the outlook may be revised to 'Negative' if the company's liquidity comes under pressure because of time or cost overrun in its project. About Innovative Infradevelopers IIPL, although incorporated in 1982, did commence operations till five years back. It is a 50:50 joint venture (JV) between the Mittal and Bansal families. IIPL is developing a hotel-cum- commercial complex, comprising a four-star hotel (1,20,000 square feet [sq ft]) and a complex for corporate offices (1,50,000 sq ft). The hotel will be run under the Hyatt brand, with the Hyatt group as IIPL's O&M partner. The project is in Haryana and is located close to the industrial and residential belt of Manesar (Haryana). Several other hotels, such as J W Marriott, Radisson, and Savoy Suites, are being developed in this area. IIPL's total expected project cost is around INR1200 million, half of it being funded by term debt and the remaining by equity. The commercial complex is expected to be completed by March 31, 2012, and the hotel by September 30, 2012. N G REALTY: CRISIL Rates INR1,150 Million Term Loan at 'B+' ----------------------------------------------------------- CRISIL has assigned its 'B+/Stable' rating to the term loan facility of N G Realty Pvt Ltd. Facilities Ratings ---------- ------- INR1150.0 Million Term Loan B+/Stable (Assigned) The rating reflects NGRPL's exposure to significant implementation risks, which could result in time and cost overruns, and its vulnerability to high project off-take risk. These weaknesses are partially offset by the extensive experience of NGRPL's promoters in the real estate industry, and the location advantage of its project. Outlook: Stable CRISIL believes that NGRPL will benefit over the medium term from the extensive experience of its promoters in the real estate industry, and the location advantage its project enjoys. The outlook may be revised to 'Positive' in case the project is completed on time and without any cost overrun, or there is more- than-expected booking for the project. Conversely, the outlook may be revised to 'Negative' in case NGRPL's project suffers cost or time overruns, or there is low demand for the project, resulting in liquidity pressures to repay its term debt obligations. About N G Realty NGRPL, part of the NG group, was incorporated in 2005 to develop infrastructure projects and undertake real estate activities such as development of land, and construction and marketing of various real estate projects. Presently, the company is developing its first project, an engineering sector-specific special economic zone (SEZ) in Ahmedabad (Gujarat). NGRPL's SEZ is spread over 218 hectares (ha), consisting of process and non-process areas in the ratio of 5.6:1, for the engineering sector, under the name of Gallops SEZ in Rajoda and Chancharwadi, Ahmedabad district. The total cost of the project is estimated at INR1.82 billion. The NG group has been in the real estate industry since 1984, and is among the forerunners in real estate development in Ahmedabad. The group has developed nearly 30 lakh square feet of land, and undertaken construction valued at more than INR15 billion. The promoters register an independent entity to develop the commercial or residential projects, a common feature in the real estate industry. Once the project is complete and the units are sold, there is no revenue generated in that firm till it undertakes a new project. All these firms were actively engaged in the business till 2007; thereafter, no projects have been undertaken by them, as the promoters focused on the SEZ project in NGRPL. PASHANKAR AUTO: CRISIL Assigns 'B+' Rating to INR120MM Term Loan ---------------------------------------------------------------- CRISIL has assigned its 'B+/Stable' rating to the bank facilities of Pashankar Auto Wheels Pvt Ltd. Facilities Ratings ---------- ------- INR160.00 Million Cash Credit B+/Stable (Assigned) INR120.00 Million Term Loan B+/Stable (Assigned) The rating reflects PAWPL's weak financial risk profile, marked by a small net worth, a high gearing, and weak debt protection metrics. The rating also factors in the company's large working capital requirements, small scale of operations, low profitability, and supplier concentration in revenue profile. These rating weaknesses are partially offset by the benefits that PAWPL derives from its promoters' extensive experience in the automotive dealership business, and established relationship with Chevrolet Sales India Pvt Ltd. Outlook: Stable CRISIL believes that PAWPL will maintain its moderate business risk profile over the medium term, supported by its established market position in the passenger car market in Pune (Maharashtra). The company's financial risk profile, marked by a high gearing, is, however, expected to remain weak because of large working capital requirements. The outlook may be revised to 'Positive' in case of improvement in capital structure and debt protection metrics, most likely because of equity infusion by promoters or lower-than-expected working capital requirements. Conversely, the outlook may be revised to 'Negative' if PAWPL's financial risk profile deteriorates further, because of large incremental working capital requirements or lower-than-expected profitability. About Pashankar Auto Incorporated in 2004, PAWPL is an authorized dealer for Chevrolet in Pune. PAWPL operates through three showrooms (two owned and one leased). PAWPL has also undertaken a real estate project, involving construction of four floors on top of its showroom at Baner (Pune), of which, three floors have already been sold. PAWPL also has a booking centre in Baramati (Maharashtra) in collaboration with Baroke Motors, Baramati. In 2009-10 (refers to financial year, April 1 to March 31), PAWPL sold around 2400 passenger cars, of which around 2,150 cars (90%) were sold in Pune; 250 cars were sold in Baramati. PAWPL sells all eight of Chevrolet's major passenger car models, and their variants. PAWPL also operates two service centres in Pune and plans to start another at Chinchwad in Pune on leased premises. PAWPL reported a profit after tax (PAT) of INR5.99 million on net sales of INR1140.81 million for 2009-10, against a PAT of INR4.65 million on net sales of INR1041.76 million for 2008-09. PITAMBER FLOUR: CRISIL Assigns 'BB' Rating to INR7-Mil. Term Loan ----------------------------------------------------------------- CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank facilities of Pitamber Flour Mills Pvt Ltd. Facilities Ratings ---------- ------- INR140.0 Million Cash Credit BB/Stable (Assigned) INR7.0 Million Term Loan BB/Stable (Assigned) INR13.0 Million Bank Guarantee P4+(Assigned) The ratings reflect PFM's below-average financial risk profile, marked by a small net worth and moderate debt protection metrics, small scale of operations, and exposure to risks related to volatility in the prices of raw materials, which are vulnerable to the vagaries of monsoon. These rating weaknesses are partially offset by the benefits that PFM derives from its promoters' experience in the wheat flour business, its established relationship with its customers, and its strong distribution network. Outlook: Stable CRISIL believes that PFM will continue to benefit over the medium term from its promoters' extensive experience in the wheat flour industry and its established relationship with its customers. The outlook may be revised to 'Positive' if the company's scales up its operations and improves its profitability. Conversely, the outlook may be revised to 'Negative' if PFM contracts a large quantum of debt to fund its capital expenditure or reports a sharp decline in accruals. About Pitamber Flour Set up in 2005, PFM manufactures and sells processed wheat products such as atta, maida, and suji. PFM is managed and controlled by Mr. Anjani Agarwal, who is a third-generation entrepreneur of the Agarwal family, which has been in the same business line for over five decades. The company has a manufacturing plant in Dhulagarh (West Bengal), with a processing capacity of 450 tonnes per day. It sells its product, under the Pitamber (wholesale) and Ashish (retail) brand names, primarily in West Bengal and in neighbouring regions. PFM reported a profit after tax (PAT) of INR2.8 million on operating income of INR1037.7 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR1.2 million on operating income of INR1067.8 million for the preceding year. PRITIKA AUTOCAST: CRISIL Puts 'B+' Rating on INR74MM Cash Credit ---------------------------------------------------------------- CRISIL has assigned its 'B+/Stable/P4' ratings to the bank facilities of Pritika Autocast Pvt Ltd (PAPL; part of the Pritika group). Facilities Ratings ---------- ------- INR74.0 Million Cash Credit Limit B+/Stable(Assigned) INR125.1 Million Term Loan B+/Stable(Assigned) Rs .10.0 Million Letter of Credit P4 (Assigned) INR3.0 Million Bank Guarantee P4 (Assigned) The ratings reflect Pritika's weak financial risk profile, marked by high gearing and weak debt protection metrics, small scale of operations, and customer concentration in its revenue profile. These weaknesses are partially offset by the group's stable operating margin, on account of integrated operations and the tax benefits it enjoys in Bathri (Himachal Pradesh), and expected increase in demand for tractors, due to rising farm incomes and improved availability of credit, leading to strong growth prospects for the group. For arriving at its ratings, CRISIL has consolidated the business and financial risk profiles of PAPL and its group entities, Pritika Industries Private Limited and Nibber Castings Private Limited, together referred to as Pritika Group. This is because the companies are under common management and there are instances of inter-company purchase and sale transactions, on account of common customer base. Additionally, there have been a few instances of inter-company loans and advances for short-term funding support between these entities. Outlook: Stable CRISIL believes that the Pritika group will benefit from its comfortable business risk profile through extensive experience of promoters and its capacity expansion plans, while maintaining its healthy operating margin, over the medium term. The outlook may be revised to 'Positive' in case of improvement in the group's capital structure, most likely through significant equity infusion, and diversification of its customer base. Conversely, the outlook may be revised to 'Negative' in case the group undertakes a larger-than-expected debt-funded capital expenditure programme or if its operating margin declines. About the Group PAPL was incorporated in 2005-06 (refers to financial year, April 1 to March 31) by Mr. Raminder Singh Nibber and his son, Mr. Harpreet Singh Nibber. The promoters have extensive experience in the castings industry through PIPL and NCPL. The company manufactures automotive and tractor components at its facility in Bathri. The company has an installed capacity of 1200 tonnes per month (tpm), with a capacity utilization level of around 58%. The management has, however, increased PAPL's capacity by setting up Unit II, which has an installed capacity of 500 tpm, on account of healthy demand prospects from large original equipment manufacturers. The facility at Bathri is an integrated unit, capable of both casting and machining. Pritika Industries Private Limited (PIPL): Incorporated in 1996 and is engaged into the manufacturing of automotive and tractor parts in Mohali. It started as a partnership firm in 1973 in the casting industry and got the corporate status in 1996 to ensure adequate sanctioning of the bank lines. About Nibber Castings Incorporated in 1997 and is engaged in the casting process for automotive and tractor parts. It supplies its products to Pritika Industries Private Limited. The Pritika group reported a profit after tax (PAT) of INR12.44 million on net sales of INR475.90 million for 2009-10, against a PAT of INR11.0 million on net sales of INR475.28 million for 2008-09. R.P. BASMATI: CRISIL Reaffirms 'BB' Rating on INR41MM Term Loan --------------------------------------------------------------- CRISIL's ratings on the bank facilities of R.P. Basmati Rice Ltd continue to reflect RP Basmati's weak liquidity, marked by complete utilization of bank lines (over 100%, at times), owing to large working capital requirements. The ratings also factor in RP Basmati's other weaknesses, such as its average scale of operations in the rice industry, and exposure to risks related to unfavorable regulatory changes, raw material price fluctuations, and to the vagaries of the monsoon. These weaknesses are partially offset by the benefits that RP Basmati derives from its promoter's experience in the basmati rice business, and improvement in net worth, driven by consistent equity infusions over the past three years. Facilities Ratings ---------- ------- INR28.3 Million Cash Credit Limit BB/Stable (Reaffirmed) INR41.0 Million Term Loan BB/Stable (Reaffirmed) INR254.7 Mil. Export Packing Credit P4+ (Reaffirmed) Outlook: Stable CRISIL believes that RP Basmati's liquidity will remain weak over the medium term, owing to its large working capital requirements and increasing revenue trajectory. The outlook may be revised to 'Positive' if its bank limits are utilized at comfortable levels, thereby leaving some cushion for any exigency, or in case of significant improvement in RP Basmati's operating income and profitability, leading to a stronger capital structure. Conversely, the outlook may be revised to 'Negative if the bank limit remains highly utilized, or if the company's operating income and profitability decline, adversely affecting its financial risk profile. About R.P. Basmati Set up in 1986 as a proprietorship firm by Mr. Raj Pal Singhal, RP Basmati was reconstituted as a public limited company in 2001. The company mills, processes, and sells basmati rice. Exports accounted for over 90% of its revenues as on March 31, 2010. Its plant in Karnal (Haryana) has a milling and sorting capacity of 16 tonnes per hour. The company also purchases semi-processed rice from smaller mills in the area, and sorts and grades it, before exporting the same. RP Basmati reported a profit after tax (PAT) of INR26 million on net sales of INR2135 million for 2009-10 (refers to financial year, April 1 to March 31), as against a PAT of INR14 million on net sales of INR1077 million for 2008-09. SAMRAKSHANA ELECTRICALS: CRISIL Reaffirms 'D' Term Loan Rating -------------------------------------------------------------- CRISIL's ratings on the bank facilities of Samrakshana Electricals Ltd continue to reflect instances of delay by SEL in servicing its term loan; the delays have been caused by the company's weak liquidity. The weak liquidity also led to instances of SEL overdrawing its cash credit account continuously for more than 30 days in the recent past. SEL's weak liquidity is because of delay in realisation of debtors leading to cash flow mismatch. Facilities Ratings ---------- ------- INR1.5 Million Term Loan D (Reaffirmed) INR220.0 Million Cash Credit D (Reaffirmed) INR14.7 Million Proposed LT Bank Loan Facility D (Reaffirmed) INR102.5 Million Letter of Credit P5 (Reaffirmed) INR90.0 Million Bank Guarantee P5 (Reaffirmed) SEL also has working-capital-intensive operations. These rating weaknesses are partially offset by the extensive industry experience of SEL's promoters. Update SEL posted a healthy 12% growth in its net sales, to INR835 million during 2009-10 (refers to financial year, April 1 to March 31), compared to that in the previous year. Furthermore, the company registered a significant increase in its operating profit margin during 2009-10. SEL continues to have weak liquidity. Though the company has reported a strong improvement in its profitability, further delay in realization of debtors has resulted in over utilization of its working capital facility continuously for more than 30 days and instances of delays in servicing its debt. Its working capital requirement has increased, as indicated by its high gross current assets of 218 days of operating income as on March 31, 2010; debtors increased to 111 days of sales as on March 31, 2010, as compared to 76 days as on March 31, 2009. The increase in working capital requirements along with high dependence on bank lines has resulted in the company's high bank limit utilization. SEL's average bank limit utilization was 99% during the 12 months through November 2010, with instances of overdrawn working capital facility continuously for more than 30 days. SEL reported a profit after tax (PAT) of INR40.4 million on net sales of INR834.6 million for 2009-10, against a net loss of INR13.3 million on net sales of INR739.5 million for 2008-09. About Samrakshana Electricals SEL, a group company of Vijai Electricals Ltd (rated, 'BBB- /Negative/P3' by CRISIL), was set up in 1987 by Mr. D J Ramesh, and commenced commercial operations in 1990-91. SEL manufactures oil-immersed circuit breakers, electrical distribution transformers, porcelain insulators, press boards, and powder paint. SEL acquired a Chennai (Tamil Nadu)-based energy meter manufacturing company, India Meters Ltd, with effect from April 1, 2008. SEL's plants are located at Hyderabad (Andhra Pradesh). SHRI PARIYUR: Fitch Puts 'B-' Rating on Non-Monitored Category -------------------------------------------------------------- Fitch Ratings has migrated the 'B-(ind)' National Long-term ratings on India's Shri Pariyur Amman Kraft Papers Private Limited and its INR47.5 million proposed term loan to the "Non-Monitored" category. The ratings will now appear as 'B-(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 SPAK. 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". SREE DHANYA: Fitch Puts 'B+' Rating on Non-Monitored Category ------------------------------------------------------------- Fitch Ratings has migrated India's Sree Dhanya Construction Company's 'B+(ind)' National Long-term rating to the "Non- Monitored" category. This rating will now appear as 'B+(ind)nm' on Fitch's website. Simultaneously, the agency has classified these instruments' ratings as "Non-Monitored": -- INR 95m fund-based working capital limits: Migrated to 'B+(ind)nm' from 'B+(ind)'; and -- INR 90m non-fund based working capital limits: Migrated to 'F4(ind)nm' from 'F4(ind)'. The ratings have been migrated to the "Non-Monitored" category due to lack of adequate information, and Fitch will no longer provide ratings or analytical coverage on SDCC. 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". SUPER TEX: CRISIL Assigns 'BB' Rating to INR85.8 Mil. LT Loan ------------------------------------------------------------- CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank facilities of Super Tex Mills (India) Pvt Ltd. Facilities Ratings ---------- ------- INR85.80 Million Long Term Loan BB/Stable (Assigned) INR75.00 Million Cash Credit BB/Stable (Assigned) INR7.70 Million Letter of Credit P4+ (Assigned) INR5.60 Million Bank Guarantee P4+ (Assigned) The ratings reflect SMPL's small scale of operations, below- average financial risk profile, marked by below-average debt protection metrics and capital structure, and susceptibility to raw material price volatility. These weaknesses are partially offset by the extensive experience of SMPL's promoters in the textile industry, and its established customer relationships. Outlook: Stable CRISIL believes that SMPL will continue to benefit over the medium term from its promoters' industry experience. The outlook may be revised to 'Positive' if SMPL increases its scale of operations and maintains profitability, while significantly improving its capital structure. Conversely, the outlook may be revised to 'Negative' if SMPL undertakes any large, debt-funded capital expenditure programme, or if its profitability declines sharply, thereby weakening its financial risk profile. About Super Tex Incorporated in 2000, SMPL is into spinning of polyester staple fibre into polyester yarn. SMPL is managed by its promoter director Mr. R Saravanaprabu, who has thirty years' experience in the business. SMPL has a manufacturing facility in Coimbatore (Tamil Nadu), with a capacity of 21,500 spindles. SMPL has capabilities to manufacture polyester yarn in 24's, 40's, 60's, 76's, 80's, 100's, and 120's counts. The company has a diverse product range, which includes 100% polyester yarn, polyester cotton yarn, polyester viscose yarn, cationic super dye yarn, and fancy and speciality yarns. SMPL reported a profit after tax (PAT) of INR6 million on net sales of INR208 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR0.3 million on net sales of INR180 million for 2008-09. XENITIS INFOTECH: Fitch Cuts National Long-Term Rating to 'D' ------------------------------------------------------------- Fitch Ratings has downgraded India's Xenitis Infotech Ltd's National Long-term rating to 'D(ind)' from 'BB+(ind)'. Fitch has simultaneously downgraded the ratings on Xenitis' bank loans: -- INR90m long-term loans: downgraded to 'D(ind)' from 'BB+(ind)'; -- INR1600m fund-based limits: downgraded to 'D(ind)' from 'BB+(ind)'; and -- INR800m non-fund based limits: downgraded to 'F5(ind)' from 'F4(ind)'. The downgrades reflect Xenitis' inability to make payments to its bankers. While Fitch has not received any confirmation of a default from the issuer, but based on its discussions with the bankers the agency believes that Xenitis is already in default and has been referred to corporate debt restructuring programme initiated by the Reserve Bank of India. Xenitis is engaged in the manufacture of computer components such as cabinets, switch-mode power systems, keyboards, mouse and speakers and in the trading of imported monitors, hard disk drives, RAMs and motherboards. Additionally, it is involved in the assembly of desktops and laptops under its own brand as well as for other manufacturers. ========= K O R E A ========= DAEWOO ELECTRONICS: Creditors Extend Sale Deadline to April 7 ------------------------------------------------------------- Yonhap News reports that creditors of Daewoo Electronics Corp. have decided to give two more months to Entekhab Industrial Group to help the Iranian electronics firm finance a deal to purchase the South Korean company, sources said. In November last year, Yonhap relates, state-run debt clearer Korea Asset Management Corp. (KAMCO) and other creditors sealed a deal to sell a combined 97.5% stake in Daewoo Electronics to Entekhab Industrial Group, a deal estimated to fetch KRW577.7 billion (US$514 million). But Entekhab Industrial is facing difficulties in securing funding as local and foreign investors have shown little interest in pooling the money, causing the group to miss a deadline to submit its finalized financing plan this month, according to Yonhap. Yonhap, citing unnamed sources, reports that creditors plan to extend the deadline by an additional two months to April 7 in an effort to make the deal stay afloat amid market concerns that the contract may be scrapped. KAMCO owns the largest stake in Daewoo Electronics with 48%. It's followed by Korea Exchange Bank's 6.6% and Shinhan Bank's 5.8%. Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation -- http://www.dwe.co.kr/-- is the third largest Korean consumer electronics company. It manufactures and sells a variety of products including televisions, DVD players, refrigerators, air conditioners, washing machines, microwaves, vacuum cleaners and car audio systems in over 105 countries. According to the Troubled Company Reporter-Asia Pacific, Daewoo Electronics has been under a debt workout program since January 2000, months after its parent group -- the Daewoo Group -- collapsed under debts of nearly US$80 billion in 1999. HYUNDAI ENGINEERING: Court Rejects Hyundai Group's Appeal --------------------------------------------------------- Colin Keatinge at Bloomberg News, citing Yonhap News, reports that a court in Seoul rejected an appeal by Hyundai Group, which had asked that the court halt creditors of Hyundai Engineering & Construction Co. from selling the to Hyundai Motor Group. Creditors of Hyundai Engineering & Construction Co. on Jan. 7, 2011, selected Hyundai Motor Group as the prime bidder for South Korea's top builder. The move came after a Seoul court on January 4 turned down an injunction sought by Hyundai Group to block creditors from scrapping the deal to sell a 35% stake in the builder. Hyundai Group signed a KRW5.5 trillion preliminary deal with KEB on Nov. 29 to buy a 34.88% stake in the country's top builder, beating its rival Hyundai Motor Group that had proposed to pay KRW5.1 trillion. But creditors of Hyundai E&C scrapped a takeover deal for the builder signed with Hyundai Group as the group failed to resolve suspicions over its ability to finance the deal. About Hyundai Engineering Headquartered in Seoul, South Korea, Hyundai Engineering & Construction Company Limited -- http://www.hdec.co.kr/-- is involved in civil engineering, housing development projects and other contracted construction works in South Korea and internationally. Its operations fall into these key areas: building, civil works, plant and power works. Within the building and housing section, HDEC is involved in construction and architecture, and has been involved in residential, commercial and institutional building projects. Hyundai Engineering has been under creditors' control. In August 2001, Hyundai Group was split into three -- Hyundai Motor, Hyundai Heavy Industries and one which retained the name, Hyundai Group -- while the remaining businesses were taken over by creditors. KOREA LINE: Owes Eagle Bulk US$7.3 Million ------------------------------------------ Eagle Bulk Shipping Inc. provided an update to the market concerning Korea Lines Corporation's decision last month to file for protective receivership. As of February 15, Eagle Bulk is owed approximately US$7.3 million of charter hire from KLC, of which approximately US$3.00 million was due and owing prior to KLC filing for rehabilitation on January 25, 2011. Eagle Bulk management remains in active negotiations concerning the status of its charters with KLC, with the following recent developments: -- All of Eagle Bulk's charters to KLC remain intact, though no charter hire payments are currently being received. Eagle Bulk has been advised by KLC that it expects to receive Court approval in South Korea in order to qualify for rehabilitation later this month, at which time KLC expects to resume charter hire payments. -- To cover the period until the Court allows KLC to resume hire payments, and subject to court approval, Eagle Bulk is working with KLC on arrangements to take over the employment of some of the affected charter vessels for an interim period. All such earnings would be used to offset the charter hire otherwise due from KLC. -- With regard to the "Nighthawk," a newbuilding vessel which is due to deliver to KLC later in the first quarter, Eagle Bulk and KLC have agreed in principle, again subject to Court approval, to defer the commencement of the charter in order to allow Eagle to employ the vessel for its own account for the time being. Eagle Bulk CFO Alan Ginsberg commented, "We have been working diligently to mitigate potential losses associated with KLC's financial restructuring. Securing alternative employment for our vessels while KLC awaits court approval to resume charter payments constitutes an important step in this regard." About Eagle Bulk Headquartered in New York City, Eagle Bulk Shipping, Inc., is a leading global owner of Supramax dry bulk vessels, which are dry bulk vessels that range in size from 50,000 to 60,000 deadweight tons, or dwt, and transport a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes. About Korea Line Headquartered in South Korea, Korea Line Corp. is an operator of dry-bulk ships. Korea Line operated 51 vessels at the end of September. It ships iron ore, coal and liquefied-natural gas for customers including Posco, Korea Electric Power Corp. and Korea Gas Corp., according to its Web site. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 26, 2011, Bloomberg News said Korea Line Corp. filed for receivership after rates tumbled to the lowest in almost two years because of a global oversupply of vessels. The filing was made at the Seoul Central District Court on Jan. 25, 2011. Bloomberg noted that the shipping line, unprofitable in six of the past seven quarters, halted its shares as it works to restructure debt. Bloomberg related that dry-bulk rates have plunged 58% in the past year amid an expanding global fleet and slowing demand for commodities in China because of government efforts to cool economic growth. The company had total debts of KRW2.23 trillion (US$2 billion) at the end of September, according to its third-quarter financial statement, Bloomberg said. The shipping line made a KRW104.2 billion loss in the quarter, Bloomberg added. KUMHO ASIANA: To Select Preferred Bidders in Mid-May ---------------------------------------------------- Yonhap News reports that sale managers for Korea Express Co. will hold a competitive bidding process to select a preferred bidder for the logistics firm in mid-May, financial sources said. Yonhap says the state-run Korea Development Bank, the main creditor of cash-strapped Kumho Asiana Group, is seeking to sell Korea Express in a bid to wrap up the restructuring of the group. Last year, the state-run lender took over Daewoo Engineering & Construction Co. in an effort to speed up the normalization of the conglomerate, now under a creditors-led debt rescheduling program. Bloomberg News reported that Kumho Asiana Group said Jan. 5, 2010, that it plans to raise KRW1.3 trillion from asset sales to help repay debt stemming from the 2006 takeover of Daewoo Engineering. The group has already sold assets and lost control of units including Daewoo Engineering, Kumho Industrial Co. and Kumho Tire Co. to creditors. Korea Express Co., Ltd. provides land and marine transportation, and logistics services. The company also operates stevedoring, distribution, and warehousing businesses that serve domestic and international customer needs. The company is part of the Kumho Asiana Group. About Kumho Asiana Established in 1946, Kumho Asiana Group is a large South Korean conglomerate, with subsidiaries in the automotive, industry, leisure, logistic, chemical and airline fields. The group is headquartered at the Kumho Asiana Main Tower in Sinmunno 1-ga, Jongno-gu, Seoul, South Korea. * SOUTH KOREA: To Set Up KRW20-Mil. Fund to Help Troubled Banks --------------------------------------------------------------- Yonhap News reports that South Korea plans to set up a KRW20 trillion fund in a bid to help expedite consolidation of troubled savings banks and bolster their financial health, officials and industry sources said. According to Yonhap, the plan comes amid surging defaults on construction project financing loans extended by savings banks that have dented savings banks' financial health over the past years, posing a threat to financial instability. Yonhap relates the officials and sources said that the envisioned fund is designed to brace for an unexpected rout or further degradation of the savings bank sector and the amount does not represent the total costs needed to normalize the industry. "The KRW20 trillion funds indicate the maximum level of money (authorities) could secure in order to proactively prepare for potential troubles," Yonhap quotes a regulatory official as saying. "It represents the government's efforts to secure market stability and prevent a run of deposit withdrawal." Yonhap notes that half of the KRW20 trillion will be drawn from the country's financial system, rather than public funds, in order to avoid having to pass the restructuring costs on to taxpayers. =============== M A L A Y S I A =============== OCI BERHAD: Stay of Winding-up Order Expires -------------------------------------------- OCI Berhad disclosed that the stay of winding up order granted by the Kuala Lumpur High Court had expired on February 3, 2011. The High Court order on winding up dated September 29, 2010, petitioned against OCI by Transmare-Chemie Sdn Bhd becomes effective. The winding up petition was served on OCI on June 26, 2007. The petition is in respect of a sum of MYR440,881.25 due from Bosschem Sdn Bhd, a 100% subsidiary of OCI, whereby OCI stood as guarantor for facilities granted to Bosschem Sdn Bhd. The Kuala Lumpur High Court granted order-in-terms for OCI's application for stay of the winding up order on November 4, 2010, for a period of three months from date of order to enable OCI's unsecured creditors to proceed with the Proposed Scheme of Arrangement and Compromise under Section 176(3) and/or under Section 177 of the Companies Act 1965 by calling for a meeting with all the unsecured creditors for the purpose of considering the Proposed Scheme of Arrangement. About OCI Berhad OCI Berhad manufactures adhesives used in the production of shoes for the footwear, toy making, building/construction, automotive, furniture and packaging industries. OCI Berhad is an affected listed issuer as the auditors have expressed a modified opinion with emphasis on the company's going concern in the company's audited financial statements for the financial year ended June 30, 2006, and the shareholders' equity of the company on a consolidated basis as at June 30, 2006, represented 40.8% of the issued and paid-up capital of the company. SELOGA HOLDINGS: Posts MYR5.91MM Net Income in Qtr Ended Dec. 2010 ------------------------------------------------------------------ Seloga Holdings Berhad disclosed with the Kuala Lumpur Stock Exchange its financial report for the fourth quarter ended December 31, 2010. For the current quarter, the company reported MYR5.91 million net income on revenue of MYR13.85 million compared with MYR1.49 million net income on revenue of MYR12.25 million in the same quarter of 2009. The Group's profit before tax of MYR8.1 million recorded in the fourth quarter ending December 31, 2010, represents an increase of 237% compared to the corresponding quarter of 2009. The increase is mainly attributable to the sale of the company's developmental rights over a parcel of land under the joint venture agreement with UEM Land Berhad for MYR11 million. For the financial year ended December 31, 2009, the Group reported lower revenue of MYR46.74 million compared with MYR61.91 million of revenue recorded in the corresponding financial year 2009. As of December 31, 2010, the company's balance sheet showed total assets of MYR107.85 million, total liabilities of MYR52.75 million and shareholders' equity of MYR55.10 million. A full-text copy of the company's quarterly report is available for free at: http://ResearchArchives.com/t/s?7358 About Seloga Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Seloga Holdings Berhad's -- http://www.seloga.com.my/-- principal activities are the provision of civil engineering contracting services, property development, provision of insurance agency services and investment holding. Other activities include mechanical and electrical engineering contracting services and manufacture of timber moldings. The Group operates predominantly in Malaysia. * * * The company is currently classified under the PN-17 list of Companies under the Bursa Malaysia Securities Bhd. SELOGA HOLDINGS: Chairman and Four Other Directors Resign --------------------------------------------------------- Seloga Holdings Bhd. announced the resignation of Chairman Dato' Robert Lim Git Hooi and four other directors: -- Mr. Derek John Fernandez; -- Dato' Syed Md Amin Bin Syed Jan Aljeffri; -- Encik Anuar Bin Adam; and -- Encik Aldillan Bin Anuar. SHB said these Directors had tendered their resignation letters to SHB on the February 8, 2011. As stated in their resignation letters, the company added, the Directors concerned were unable to agree with the views of the majority shareholder in many matters which will only impede the growth of the Company. About Seloga Holdings Headquartered in Selangor Darul Ehsan, Malaysia, Seloga Holdings Berhad's -- http://www.seloga.com.my/-- principal activities are the provision of civil engineering contracting services, property development, provision of insurance agency services and investment holding. Other activities include mechanical and electrical engineering contracting services and manufacture of timber moldings. The Group operates predominantly in Malaysia. * * * The company is currently classified under the PN-17 list of Companies under the Bursa Malaysia Securities Bhd. ==================== N E W Z E A L A N D ==================== SOUTH CANTERBURY: Receivers Start Sale Process of Face Finance -------------------------------------------------------------- BusinessDay.co.nz reports that receivers said they were starting the sale process for Face Finance, a subsidiary of South Canterbury Finance in receivership. BusinessDay.co.nz relates that the sale process will be conducted by Deutsche Bank AG, sale advisor to the receivers for SCF's core finance business. Kerryn Downey and William Black of McGrathNicol, receivers of the SCF Group, said they believe the potential sale would offer the opportunity to transition the business out of receivership and provide greater certainty to customers going forward, according to BusinessDay.co.nz. The receivers have yet to announce the sale process for the consumer and commercial lending businesses of SCF, although they expect this process will start within two to three months. Ad Feedback The National Business Review, citing first receivership report, discloses that Face Finance had a total loan book of $205.43 million at the time of receivership last August. Of that amount, $8.48 million was impaired. The company had cash and cash equivalents of just $399,193 as at September 2010. Face Finance focused on lending to the road transport, aviation, earthmoving and construction sectors and has operated on a largely standalone basis from the rest of the SCF group since establishment, with a separate distribution network and customer relationships. ===================== P H I L I P P I N E S ===================== PHILIPPINE AIRLINES: Union Denies Reaching Deal Over Outsourcing ---------------------------------------------------------------- BusinessWorld Online reports that the Philippine Airlines Employees' Association (PALEA) has denied it had reached a settlement with flag carrier Philippine Airlines for a gradual implementation of outsourcing along with higher separation pay. The clarification was made after reports came out that a partial agreement had been made between PALEA and PAL, BusinessWorld says. "Neither management or the union proposed such ideas in the mediation meeting called by the Office of the President last Friday. And we certainly will not agree to either gradual outsourcing or higher separation [pay] or both," Businessworld quotes PALEA President Gerry Rivera as saying. Mr. Rivera told BusinessWorld that the only agreement reached last Friday was for PAL to submit unaudited quarterly financial statements. "We were told last Friday by representatives from Malacanang that they are not closing their doors for another round of talks. If any one of the parties will ask [the Palace], then there might be talks in the future," Mr. Rivera said. In a separate statement, BusinessWorld says, PAL concurred with PALEA that the conciliatory talks in Malacanang last Friday did not result in any compromise or any form of settlement to end the labor row. PAL said it would keep its communication lines "open." 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. ********* 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 ***