/raid1/www/Hosts/bankrupt/TCRAP_Public/110301.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, March 1, 2011, Vol. 14, No. 42
Headlines
A U S T R A L I A
CROFTWORTH PROPERTY: Westpac Calls in Receivers
EQUITITRUST INCOME: Expects to Become Liquid in 2011
SELECTV BROADCASTING: Creditors Mull Insolvency Action Against WIN
VIRIDIAN NOOSA: Resort Development Placed in Receivership
YACHTING UNLIMITED: Kingold Sues Directors Over Failed $5.1M Deal
C H I N A
AURASOUND INC: Errors Found in September 2010 Quarterly Results
H O N G K O N G
KORTEC ASIA: Creditors' Proofs of Debt Due March 25
LAI SUN: Yeung Kam Hoi Steps Down as Liquidator
MA SICONG: Creditors' Proofs of Debt Due March 25
MICHAEL PAGE: Commences Wind-Up Proceedings
NAN KONG: Creditors' Proofs of Debt Due March 25
NEWTRADE ELECTRONIC: Creditors' Proofs of Debt Due March 30
PAN-PACIFIC SERVICES: Haughey and Lai Step Down as Liquidators
SENRICH INDUSTRIES: Creditors' Meeting Set for March 4
SEA RUBY: Chan Chung Mo Steps Down as Liquidator
SINO FORUM: Chan Chung Mo Steps Down as Liquidator
I N D I A
AKBAR ONLINE: CRISIL Assigns 'BB-' Rating to INR100MM Cash Credit
B. MELARAM: CRISIL Upgrades Rating on INR70MM Cash Credit to 'BB'
BABY MEMORIAL: CRISIL Downgrades Rating on INR600MM Loan to 'B-'
BAIJNATH MELARAM: CRISIL Places 'BB' Rating to INR200M Cash Credit
CORPORATION BANK: Fitch Affirms 'C/D' Individual Rating
CANAAN ENGINEERING: CRISIL Assigns 'C' Rating to INR132.5MM Loan
CLUSTER JEWELLERY: CRISIL Puts 'B+' Rating to INR118MM Cash Credit
COTTON WORLD: CRISIL Reaffirms 'BB+' Rating to INR49MM LT Loan
DIASQUA INDIA: CRISIL Reaffirms 'P4' Rating on INR55MM ST Loan
GALLERIA MALL: CRISIL Reaffirms 'B' Rating on INR1.25BB LT Loan
KOHINOOR INDIA: CRISIL Assigns 'B' Rating to INR100MM Cash Credit
LAKSHMIVEL MILLS: CRISIL Raises Rating on INR325.8MM Loan to 'B-'
M.G.B. MOBILES: CRISIL Assigns 'B+' Rating to INR20 Mil. Term Loan
MITHILA MOTORS: CRISIL Reaffirms 'BB+' Rating on INR50MM Term Loan
R.K. EXPORTS: CRISIL Rates INR180 Million Letter of Credit at 'P4'
RAJ GEMS: CRISIL Reassigns 'B+' Rating to INR180MM Packing Credit
RAMANAND STEEL: CRISIL Cuts Rating on INR190MM Cash Credit to 'D'
SK WHEELS: Fitch Assigns National Long-Term Rating at 'BB-'
SONA OKEGAWA: Fitch Upgrades National Long-Term Rating to 'BB'
SILVER ISPAT: CRISIL Cuts Rating on INR90MM Cash Credit to 'D'
SRI GUGAN: CRISIL Upgrades Rating on INR88.3-Mil. LT Loan to 'B-'
SHREE TIRUPATI: CRISIL Assigns 'BB' Rating to INR27.5MM Term Loan
UNITED ELECTRICAL: CRISIL Downgrades Rating on Cash Credit to 'B-'
I N D O N E S I A
MANDALA AIRLINES: To Resume Flight Operations Soon
* Fitch Gives Positive Outlook on Indonesia; Affirms 'BB+' Rating
J A P A N
JAPAN AIRLINES: To Receive JPY20-Bil. Investment from 8 Firms
JAPAN AIRLINES: To Retire Last Boeing 747 Jet on March 1
JLOC XXX: Moody's Takes Rating Actions Various Classes of Notes
K O R E A
GENERAL MOTORS: Korean Unit Officially Launches Chevrolet Brand
KOREA LINE: Seeks Bankruptcy Protection in the U.S.
KOREA LINE: Chapter 15 Case Summary
N E W Z E A L A N D
EX CED FOODS: Seeks Bankruptcy Protection in the U.S.
EX CED FOODS: Chapter 15 Case Summary
SOUTH CANTERBURY FINANCE: Receivership Gathers Speed
P H I L I P P I N E S
LEGACY GROUP: BSP Files New Charges Against Legacy Officials
LUDO & LUYM: Supreme Court Allows Receivership Case to Proceed
VICTORIAS MILLING: Elects Wilson Young as New Chairman
S I N G A P O R E
AML PRODUCTS: Creditors' Proofs of Debt Due March 23
CPD OILWELL: Court to Hear Wind-Up Petition on March 11
DIAMOND MARINE: Court to Hear Wind-Up Petition on March 11
DRAYCOTT PTE: Creditors' Proofs of Debt Due March 23
DUNEARN PTE: Creditors' Proofs of Debt Due March 23
HOLZ-HER ASIA: Court Enters Wind-Up Order
ORHIS PTE: Court to Hear Wind-Up Petition on March 18
X X X X X X X X
* S&P's 2011 Global Corporate Default Tally Remains at Three
* BOND PRICING: For the Week February 21 to February 25, 2011
- - - - -
=================
A U S T R A L I A
=================
CROFTWORTH PROPERTY: Westpac Calls in Receivers
-----------------------------------------------
Mitch Gaynor at The Courier-Mail reports that Croftworth Property
Holdings -- a company linked to two-time former bankrupt Dudley
Quinlivan -- was forced into administration.
The Courier-Mail says Croftworth Property Holdings (No.1 and No.2)
of which Mr. Quinlivan is a former director and remains a
shareholder in a related company were placed in administration in
mid-February after Westpac Bank called in receivers.
According to the report, the move places a question mark over
Equititrust Income Fund, which loaned money to Quinlivan-linked
companies in 2007. The Courier-Mail relates that during the
global financial crisis, Equititrust was forced to freeze the fund
and late last year sought to raise tens of millions of dollars to
refinance loans.
Mr. Quinlivan, referred to in state parliament as the "King Con"
of property marketing schemes, was banned from being a company
director in late 2010 over a string of company collapses, most
recently the AU$70 million collapse of the Corymbia Corporation,
according to The Courier-Mail.
The Courier-Mail, citing company records, discloses that
Croftworth Property borrowed millions of dollars from Equititrust
to secure several properties on the Gold Coast in late 2007, when
Mr. Quinlivan was still a director. Part of that money was used
to purchase land in Bundall that Croftworth planned to turn into a
AU$600 million commercial/residential hub, the report says.
According to The Courier-Mail, receiver Andrew Fielding of BDO
Kendalls said it was too early to estimate Croftworth's total
debts, but said it appeared the companies owed a "substantial sum"
to Equititrust.
A meeting between Equititrust and the receivers has been scheduled
for this week, The Courier-Mail adds.
Croftworth Property Holdings is a Gold Coast-based real estate
company.
EQUITITRUST INCOME: Expects to Become Liquid in 2011
----------------------------------------------------
Nick Nichols at The Gold Coast Bulletin reports that the frozen
Gold Coast-based Equititrust Income Fund is expected to become
liquid this year, despite one of its borrowers, Croftworth
Property, was being placed in the hands of receivers.
According to The Gold Coast Bulletin, Equititrust chief executive
David Anderson said Equititrust had no Croftworth securities in
common with Westpac Bank.
Company records show that Croftworth Property borrowed millions of
dollar from Equititrust to secure several properties on the Gold
Coast in late 2007, when Dudley Quinlivan was still a director of
Croftworth, The Courier-Mail Australia relates in a separate
report. Croftworth's main Gold Coast asset is a strata-titled
office block at 100 Bundall Rd, Bundall.
Equititrust, a Chevron Island-based funds manager, said the
appointment of receivers to Croftworth Property "was neither
unexpected nor caused concern," The Gold Coast Bulletin relates.
It was Westpac Bank who called in the receivers on Croftworth in
mid-February. Croftworth has also had been slapped with a
winding-up order by the Australian Taxation Office, The Gold Coast
Bulletin says.
Mr. Anderson was quoted by The Gold Coast Bulletin as saying, "We
are working with the bank's receivers as we have adjacent
properties and a joint campaign may be beneficial to both.
Discussions with the bank commenced well before receivers were
appointed."
The Bulletin relates that Mr. Anderson said Equititrust had been
"strategically involved" with Mr. Quinlivan's assets and had
"influenced direction for more than 12 months."
"As a general rule, we consider it more effective to work with a
borrower than formally appoint a receiver and, ordinarily, only
appoint where a borrower has demonstrated an unwillingness or
inability to work with us," Mr. Anderson said, The Bulletin notes.
The Bulletin relates that Equititrust revealed, in an updated
release to investors last week, that it was expecting to become
liquid this year after freezing redemptions more than two years
ago. If it does so, Equititrust will be become the first Gold
Coast-based fund to recover after a torrid three years for the
sector, the Bulletin notes.
Equititrust, as cited by the Bulletin, said it had realized $120
million in loan repayments over the past two years, with a total
of $99 million repaid to the Commonwealth Bank and the National
Australia Bank.
Equititrust Income Fund is a Gold Coast-based investment fund.
Equititrust was forced to freeze the fund in 2007 and late last
year, sought to raise tens of millions of dollars to refinance
loans.
SELECTV BROADCASTING: Creditors Mull Insolvency Action Against WIN
------------------------------------------------------------------
The Sydney Morning Herald reports that creditors of SelecTV have
asked its administrator to look into whether WIN Corporation and
Andrew Gordon, the son of the Bermuda-based media tycoon Bruce
Gordon, can be pursued for alleged insolvent trading.
Citing minutes from the first creditors' meeting, lodged with the
Australian Securities and Investments Commission last week, SMH
discloses that some creditors asked the joint administrator Gayle
Dickerson, from Grant Thornton, about an insolvency action against
the directors and the parent company.
SMH notes that SelecTV Broadcasting was placed in administration
last month, owing AU$26.6 million. SelecTV is a wholly owned
subsidiary of WIN Corp., and WIN is listed as the largest creditor
of SelecTV, who is owed AU$12.9 million.
According to SMH, Scott Jenkins, managing director of Sydney
Teleport Services, said it was "absolutely amazing" if after all
the years WIN ran the 'pay TV' service at a loss, it would to be
owed about AU$13 million -- which would put WIN just ahead of the
combined AU$12 million debts of suppliers and service providers.
SMH says Sydney Teleport Services, which is owed $650,000, is
being pursued by the administrator in court to hand over video
compression equipment, without which WIN cannot complete the sale
of remaining parts of the SelecTV business to United Broadcasting
International.
The SelecTV administrator, as cited by SMH, said in an affidavit
that WIN had told her a deed of company arrangement, in which
creditors were to be paid 15 cents in the dollar, would not
proceed without the sale to UBI.
According to SMH, WIN paid AU$46.9 million for SelecTV in 2006,
launching an Australia-wide low-cost television service of Greek,
Italian and Spanish channels, and English language channels,
including National Geographic and Movie One. WIN has since sold
the channels to Foxtel, Austar and, most recently, UBI.
SMH relates that SelecTV Director Andrew Gordon -- who did not
attend the meeting, but gave the administrator a statement -- said
the company had never been profitable and had never acquired the
"critical mass" of subscribers to be profitable.
Creditors were told their likely return was 5 to 6 cents in the
dollar if the company was wound up, SMH reports.
"We believe it is in the interests of all creditors to execute the
[deed of company arrangement] -- the estimated return is at least
three times higher than is estimated under a liquidation
scenario," SMH quotes the SelecTV administrator as saying. "It
provides a greater degree of certainty and a more timely return to
creditors than liquidation."
SelecTV is a satellite TV operator owned by Wollongong-based WIN
Corp.
VIRIDIAN NOOSA: Resort Development Placed in Receivership
---------------------------------------------------------
SmartCompany reports that Viridian Noosa Resort & Spa has been
placed in the hands of receiver John Cronin of accounting and
insolvency firm McGrathNicol.
SmartCompany says the AU$300 million resort development is
continuing to trade while the receiver assesses the project's
financial situation.
Of the 198 units in the resort project, 160 apartments and villas
remain unsold, SmartCompany notes.
According to SmartCompany, the Queensland tourism sector has been
hit hard in recent years by falls in Australian tourist numbers
due to fragile consumer confidence, by lower international tourist
numbers due to the high Australian dollar, and more recently by
the state's inclement weather. SmartCompany relates that those
problems have compounded the difficult environment faced by
property developers, who have been battling high debt levels,
unfriendly lenders, and in some areas, oversupply.
Queensland-based bank Suncorp is the major lender to the Viridian
development.
Viridian Noosa Resort & Spa, which was developed by Leighton
Properties and Macquarie Real Estate, is a AU$300 million resort
development, which includes a five-star resort managed by hotel
company Outrigger.
YACHTING UNLIMITED: Kingold Sues Directors Over Failed $5.1M Deal
-----------------------------------------------------------------
Leonie Lamont at The Sydney Morning Herald reports that Guangzhou
Kingold Real Estate Development Co Ltd is pursuing the directors
of the failed boat business Yachting Unlimited Pty Ltd, on
allegations that the company was insolvent when it signed
contracts in 2008.
SMH relates that Kingold Real is a company associated with the
Chinese-born Australian citizen billionaire businessman and
philanthropist Chau Chak Wing, who entered the BRW Rich 200 list
last year at AU$920 million.
SMH, citing a statement of claim lodged with the Federal Court,
says that Dr. Chau's son -- who is listed on the court document as
Eric Chow -- negotiated on behalf of Guangzhou Kingold to buy one
of the slickest motor yachts on the market: a Ferretti 830, with a
price of EUR3,760,328 or US$5.1 million.
SMH notes that after paying for and taking delivery of the Italian
luxury cruiser, Kingold said it entered into a trade-in agreement
with Yachting Unlimited in April 2008. According to the report,
Kingold agreed to loan the Ferretti 830 to be shown at that year's
Sanctuary Cove International Boat Show and the Sydney
International Boat Show. Yachting Unlimited was also to take
delivery of the trade-in, a Princess 56 motor yacht moored at
Jones Bay Wharf, and prepare it for sale at AU$1.2 million. If it
didn't sell within six months, Kingold stated, Yachting Unlimited
was to buy the boat at that price, SMH relays.
According to SMH, when the trade-in boat was unsold, Kingold took
possession of it, sold it, and recovered $578,217.50 after costs.
SMH relates that Kingold is seeking $621,782.50, plus interest, in
damages representing the difference between the sale price and
AU$1.2 million from directors John and Yvonne Sanders of Auckland,
New Zealand, and William Sweeney in Sydney.
Yachting Unlimited went into liquidation in September 2009.
Kingold said it was given written consent by the liquidator late
last year to commence proceedings against the directors under
insolvency section 588M of the Corporations Act, SMH discloses.
SMH notes that defenses are due to be filed within a month.
=========
C H I N A
=========
AURASOUND INC: Errors Found in September 2010 Quarterly Results
---------------------------------------------------------------
On Feb. 18, 2011, the management team of Aurasound, Inc.,
determined, on their authority, that the Company's unaudited
condensed and consolidated income statement for the quarter ended
Sept. 30, 2010, as previously filed with its quarterly report on
Form 10-Q for that fiscal quarter with the U.S. Securities and
Exchange Commission, can no longer be relied upon due to a
determination that certain of the Company's invoices were booked
in the wrong period. The Company's management team discovered the
error during its routine internal controls review process and
preparation for the Company's filing of its quarterly report on
Form 10-Q with the SEC for the fiscal quarter ended Dec. 31, 2010.
The Company's principle executive officer and principle financial
officer and other authorized members of the Company's executive
management team have discussed the matters with the Company's
independent registered public accounting firm.
About AuraSound, Inc.
Santa Fe Springs, Calif.-based AuraSound, Inc. (OTC BB: ARUZ)
-- http://www.aurasound.com/-- through its wholly owned
subsidiary, AuraSound, Inc., a California corporation, develops,
manufactures and markets premium audio products. Specifically,
AuraSound has developed and is currently marketing undersized
speakers that will deliver sound quality to devices such as
laptops, flat-panel televisions and displays that the Company
believes to be superior to the sound quality currently found in
these devices. During the year ended June 30, 2010, the Company's
operations in China were conducted through Well-Tech International
Co., a Hong Kong company owned by Susanne Lee who is the Company's
office administrator in Hong Kong. The Company's operations in
Taiwan are conducted by AuraSound as a foreign corporation doing
business in Taiwan.
With its recent acquisition of ASI Audiotechnologies, which closed
on July 31, 2010, the Company has an industry leading TV soundbar
business, additional proprietary transducer technology,
application specific amplifier designs, and award winning ID
designs.
The Company's balance sheet at Sept. 30, 2010, showed
$32.91 million in total assets, $32.59 million in liabilities, all
current, and $326,294 in stockholders' equity.
Kabani & Company, Inc., in Los Angeles, expressed substantial
doubt about the Company's ability to continue as a going concern
following the fiscal 2010 results. The independent auditors noted
that during the year ended June 30, 2010, the Company incurred net
losses of $2.2 million, and had negative cash flow from operating
activities of $202,383.
================
H O N G K O N G
================
KORTEC ASIA: Creditors' Proofs of Debt Due March 25
---------------------------------------------------
Creditors of Kortec Asia Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by March 1,
2011, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 18, 2011.
The company's liquidators are:
Paul M. Swenson
109 Blueberry Lane
South Hamilton
MA 01982, U.S.A
Campbell Steward
65 Asbury Street
Topsfield
MA 01983, U.S.A.
LAI SUN: Yeung Kam Hoi Steps Down as Liquidator
-----------------------------------------------
Yeung Kam Hoi stepped down as liquidator of Lai Sun Athletic
Association Limited on Feb. 25, 2011.
MA SICONG: Creditors' Proofs of Debt Due March 25
-------------------------------------------------
Creditors of Ma Sicong International Music Foundation Limited,
which is in members' voluntary liquidation, are required to file
their proofs of debt by March 25, 2011, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Feb. 18, 2011.
The company's liquidator is:
Tsang Wai Kit
6/F., May May Building
Nos. 683-685 Nathan Road
Mongkok, Hong Kong
MICHAEL PAGE: Commences Wind-Up Proceedings
-------------------------------------------
Members of Michael Page International (North Asia) Limited, on
Feb. 18, 2011, passed a resolution to voluntarily wind up the
company's operations.
The company's liquidators are:
Darach Eoghan Haughey
Lai Kar Yan Derek
35th Floor, One Pacific Place
88 Queensway, Hong Kong
NAN KONG: Creditors' Proofs of Debt Due March 25
------------------------------------------------
Creditors of Nan Kong Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
March 25, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Ng Kam Chiu
13A, Tak Lee Commercial Building
113-117 Wanchai Road
Wanchai, Hong Kong
NEWTRADE ELECTRONIC: Creditors' Proofs of Debt Due March 30
-----------------------------------------------------------
Creditors of Newtrade Electronic Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by March 30, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Feb. 18, 2011.
The company's liquidators are:
James T. Fulton
Cordelia Tang
905 Silvercord
Tower 2, 30 Canton Road
Tsimshatsui, Kowloon
Hong Kong
PAN-PACIFIC SERVICES: Haughey and Lai Step Down as Liquidators
--------------------------------------------------------------
Darach E. Haughey and Lai Kar Yan (Derek) stepped down as
liquidators of Pan-Pacific Services Limited on Feb. 21, 2011.
SENRICH INDUSTRIES: Creditors' Meeting Set for March 4
------------------------------------------------------
Creditors of Senrich Industries Limited will hold their meeting on
March 4, 2011, at 11:30 a.m., for the purposes provided for in
Sections 241, 242, 243, 244, 255A and 283 of the Companies
Ordinance.
The meeting will be held at Room 502, 3 Lockhart Road, Wanchai, in
Hong Kong.
SEA RUBY: Chan Chung Mo Steps Down as Liquidator
------------------------------------------------
Chan Chung Mo stepped down as liquidator of Sea Ruby Ltd on
Feb. 18, 2011.
SINO FORUM: Chan Chung Mo Steps Down as Liquidator
--------------------------------------------------
Chan Chung Mo stepped down as liquidator of Sino Forum Ltd on
Feb. 18, 2011.
=========
I N D I A
=========
AKBAR ONLINE: CRISIL Assigns 'BB-' Rating to INR100MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable' rating to the long-term bank
facilities of Akbar Online Booking Company Pvt Ltd.
Facilities Ratings
---------- -------
INR100.0 Million Cash Credit BB-/Stable (Assigned)
INR60.0 Million Proposed LT BB-/Stable (Assigned)
Bank Loan Facility
The rating reflects Akbar Online's below-average financial risk
profile, marked by small net worth and high ratio of total outside
liabilities to tangible net worth, large working capital
requirements, and susceptibility to cyclicality in the airline
industry. These rating weaknesses are partially offset by the
established track record of Akbar Online's promoters in the
airline ticketing business.
Outlook: Stable
CRISIL believes that Akbar Online will benefit from the strong
track record of its promoters in the airline ticketing business,
over the medium term. The outlook may be revised to 'Positive' if
Akbar Online's liquidity and financial risk profile improve
because of significant capital infusion by the promoters.
Conversely, the outlook may be revised to 'Negative' if Akbar
Online's operating margin declines significantly, or in case its
working capital requirements increase, leading to further stretch
in its liquidity.
About Akbar Online
Akbar Online booking Company Private Limited (Akbar Online) was
incorporated in the year 2008 and is promoted by Mr. K.V.A Nazar
and Mrs. N.A. Nazar. It is an agency registered with the
International Air Transport Association in India. Akbar Online
offers a wide range of travel-related services and facilities
through its online-booking business model. The services offered
by Akbar Online include domestic/international ticketing, foreign
exchange, and holiday packages. Its promoters also have
managerial interests in several other companies involved in
services such as car rental, food and beverages, hotels, tours and
travels, online ticketing portal, communications, petrol and
diesel dealership, and printing.
Akbar Online reported a profit after tax (PAT) of INR17.5 million
on net sales of INR157 million for 2009-10 (refers to financial
year, April 1 to March 31), as against a PAT of INR12.8 million on
net sales of INR91 million for 2008-09.
B. MELARAM: CRISIL Upgrades Rating on INR70MM Cash Credit to 'BB'
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
B. Melaram & Sons (BMS, part of the Melaram group) to 'BB/Stable'
from 'BB-/Stable'; the rating on the short-term facility has been
reaffirmed at 'P4+'.
Facilities Ratings
---------- -------
INR70.0 Million Cash Credit BB/Stable (Upgraded from 'BB-
/Stable')
INR180.0 Mil. Letter of Credit P4+ (Reaffirmed)
The upgrade reflects the significant improvement in the Melaram
group's business risk profile, given the improvement in its
operating profitability in 2009-10 (refers to financial year,
April 1 to March 31); the group's operating margin improved to 7
per cent in 2009-10 from a negative 1 per cent the previous year.
As a result, its financial risk profile has improved over the past
year. The group is likely to demonstrate healthy business
performance in the near term, given the healthy outlook for the
ship-breaking industry. CRISIL believes that the Melaram group
will generate adequate cash flows to meet its letter of credit
obligations in the near term.
The ratings continue to reflect the Melaram group's susceptibility
to cyclicality in the shipping industry, volatility in prices of
steel scrap, volatility in foreign exchange rates, and adverse
regulatory changes, and the large loans and advances extended by
the group's promoters to their relatives and friends. These
rating weaknesses are partially offset by the group's improved
financial risk profile, marked by moderate net worth, low gearing,
and healthy debt protection metrics, strong growth prospects for
the ship-breaking industry, and promoters' extensive industry
experience.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of BMS and Baijnath Melaram, together
referred to as the 'Melaram group'. This is because the entities
have common promoters, and operational and financial linkages with
each other.
Outlook: Stable
CRISIL believes that the Melaram group will continue to benefit
from its promoters' extensive industry experience and the healthy
growth prospects for the ship-breaking industry over the medium
term. The outlook may be revised to 'Positive' if the group
consistently demonstrates higher volume of ship-breaking activity,
and achieves better-than-expected consolidated net cash accruals.
Conversely, the outlook may be revised to 'Negative' if the
group's revenues, profitability or debt protection metrics weaken
significantly over the medium term.
About the Group
The Melaram group has been promoted by the Agarwal family. It was
set up in 1950 by Mr. Baijnath Bhoruka, and comprises two firms-
Baijnath Melaram (set up in 1950) and B. Melaram & Sons (set up in
1982); both the firms trade in steel products and are engaged in
ship breaking. The group's operations are based in Mumbai and
Bhavnagar (Gujarat). The Melaram group is managed by Mr. Melaram
Agarwal (the founder's son), and Mr. V K Agarwal and Mr. Bhupender
Kumar Agarwal (the founder's grandsons). Mr. V K Agarwal look
after the day-to-day operations in Mumbai and Mr. Bhupender Kumar
Agarwal looks after operations in Bhavnagar.
B. Melaram & Sons reported a profit before tax (PBT) of INR3.9
million on net sales of INR254 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PBT of INR6.2
million on net sales of INR386 million for 2008-09.
BABY MEMORIAL: CRISIL Downgrades Rating on INR600MM Loan to 'B-'
----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term loan of Baby
Memorial Hospital Ltd to 'B-/Stable' from 'B/Stable'.
Facilities Ratings
---------- -------
INR600.00 Million Long-Term Loan B-/Stable (Downgraded from
'B/Stable')
The downgrade reflects the further weakening of BMHL's financial
risk profile because of cost overruns in its project of developing
a 320-bed super-specialty hospital as an annex to the hospital
building, following a delay of over nineteen months. The 320-bed
hospital is now expected to commence commercial operations in
April 2011, against the original expectation of September 2009.
As a result of the delay, the company's cash accruals in 2011-12
(refers to financial year, April 1 to March 31) are expected to be
insufficient to repay maturing debt obligations of around INR123
million in the financial year. CRISIL, however, believes that the
promoters will infuse funds to ensure timely repayment of debt.
The downgrade also factors in BMHL's aggressive capital
expenditure (capex) programme involving the setting up of
Healthcity, a 700-bed facility in Cochin.
The ratings reflect BMHL's weak financial risk profile, marked by
weak debt protection metrics and high gearing, project
implementation risks, and the limitations of single-location
operations. These weaknesses are partially offset by BMHL's
established position in the Calicut (Kerala) market and mitigation
of employee attrition risks.
Outlook: Stable
CRISIL believes that BMHL will continue to benefit from its
established market position among private hospitals in Calicut.
Its financial risk profile will, however, remain under pressure
over the medium, because of the large capex being undertaken by
the company. The outlook may be revised to 'Positive' in case of
substantial equity infusion into the company, thereby mitigating
the funding risk for its capex and improving its capital
structure. Conversely, the outlook may be revised to 'Negative'
if BMHL faces further time or cost overruns in its ongoing capex
programme or undertakes an additional large, debt-funded capex
programme, leading to deterioration in its capital structure.
About Baby Memorial
BMHL, started by Dr. K G Alexander in 1987 as a partnership firm,
is one of the largest hospitals in Calicut. The partnership firm
was reconstituted as a public limited company in April 2009.
Currently, the hospital has 480 beds. The company is setting up a
320-bed super-specialty unit, which is expected to commence
commercial operations by April 2011. BMHL has positioned itself as
a multi-specialty, tertiary care referral hospital. It
specializes in aneasthesiology and critical care, cardiology,
cardiac surgery, neurology, neurosurgery, oncology, pediatrics,
endocrinology, nephrology, gastroenterology, urology, obstetrics
and gynecology, plastic & reconstructive surgery, Internal
Medicine, General and Laparoscopic Surgery etc. BMHL also offers
post-graduate courses for doctors, and degree and diploma courses
in nursing. The company plans to set up Healthcity, a 700-bed
hospital in Cochin. The first phase, involving the setting up of
500 beds, is expected to begin in July 2011.
For 2009-10, BMHL reported a profit after tax (PAT) of INR31
million on net sales of INR469 million, against a PAT of INR7
million on net sales of INR389 million for the previous year.
BAIJNATH MELARAM: CRISIL Places 'BB' Rating to INR200M Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Baijnath Melaram (BM, part of the Melaram group).
Facilities Ratings
---------- -------
INR200.0 Million Cash Credit BB/Stable (Assigned)
INR550.0 Million Letter of Credit P4+ (Assigned)
The ratings reflect the Melaram group's susceptibility to
cyclicality in the shipping industry, volatility in prices of
steel scrap, volatility in foreign exchange rates, and adverse
regulatory changes, and the large loans and advances extended by
the group's promoters to their relatives and friends. These
rating weaknesses are partially offset by the group's improved
financial risk profile, marked by moderate net worth, low gearing,
and healthy debt protection metrics, strong growth prospects for
the ship-breaking industry, and promoters' extensive industry
experience.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of BM and B Melaram & Sons, together
referred to as the Melaram group. This is because the entities
have common promoters, and operational and financial linkages with
each other.
Outlook: Stable
CRISIL believes that the Melaram group will continue to benefit
from its promoters' extensive industry experience and the healthy
growth prospects for the ship-breaking industry over the medium
term. The outlook may be revised to 'Positive' if the group
consistently demonstrates higher volume of ship-breaking activity,
and achieves better-than-expected consolidated net cash accruals.
Conversely, the outlook may be revised to 'Negative' if the
group's revenues, profitability or debt protection metrics weaken
significantly.
About the Group
The Melaram group is promoted by the Agarwal family. Set up in
1950 by Mr. Baijnath Bhoruka, it comprises two firms, BM (set up
in 1950), and B Melaram & Sons (set up in 1982). Both the firms
trade in steel products and break old ships. The group's
operations are based in Mumbai and Bhavnagar (Gujarat). The
Melaram group is managed by Mr. Melaram Agarwal (the founder's
son), and Mr. V K Agarwal and Mr. Bhupender Kumar Agarwal (the
founder's grandsons). Mr. Bhupender Kumar Agarwal looks after the
daily operations of BM and Mr. V K Agarwal heads B Melaram & Sons.
BM reported a profit before tax (PBT) of INR60 million on net
sales of INR826 million for 2009-10 (refers to financial year,
April 1 to March 31), against a net loss of INR28 million on net
sales of INR886 million for 2008-09.
CORPORATION BANK: Fitch Affirms 'C/D' Individual Rating
-------------------------------------------------------
Fitch Ratings has affirmed India-based Corporation Bank's
Individual Rating at 'C/D' and its Support Rating at '3'.
CB's Individual Rating reflects its compressed net interest margin
and the diminishing share of low-cost deposits on its balance
sheet. This is offset by the bank's capitalization and asset
quality, which are on a par with higher-rated government banks in
India, and its track record of stable performance. CB's Support
Rating reflects the moderate probability of support from the
government if needed, given its strong regional systemic
importance.
Over the last three years, CB has increased its exposure to large
corporates. This improvement in its borrower profile has come at
the cost of lower yields on corporate loans. Declining proportion
of low-cost deposits has put additional pressure on its NIM.
However, despite its NIM being lower than peers', CB has been
reporting above-average return on assets, due to operational
efficiency; its cost to income ratio (35.9% for the nine months to
December 2011) is amongst the lowest in India.
CB's gross non-performing loan ratio increased to around 1.3% at
end-9M11 (FY10: 1%) mainly due to incremental NPLs from the
agriculture sector. Nevertheless, the bank's asset quality is one
of the best among India's public sector banks. Fitch believes
that CB's improved credit monitoring systems, coupled with its
sound loan loss reserves coverage (72.8% -including technical
write-offs - at end-9M11), should protect the bank's financial
profile.
The bank has traditionally maintained conservative levels of
capital, and its regulatory capital ratios (end-9M11: Tier 1:
8.13%, capital adequacy: 14.27%) compare favorably with those of
its peers. In Fitch's opinion, equity infusion may be necessary
in the near term given its plans for above-average growth, which
could put pressure on its capital.
CB's Individual Rating may be upgraded in the event of a
significant and sustained improvement in its profitability or
funding profile. The rating may face downward pressure if there
is marked deterioration in the bank's asset quality, and/or a
dilution in the quality of capital, which Fitch believes is
unlikely in the medium term.
Corporation Bank is a mid-sized government-owned bank that has
approximately 70% of its branch presence in southern and western
India. It started its operations in 1906 and is headquartered at
Mangalore in the southern Indian state of Karnataka. As at end-
9M11, Corporation Bank had 1,255 branches and 1,174 ATMs across
the country, with an employee base of over 12,000. The Government
of India has 57.17% shareholding in CB.
CANAAN ENGINEERING: CRISIL Assigns 'C' Rating to INR132.5MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'C' rating to the bank facilities of
Canaan Engineering Private Limited.
Facilities Ratings
---------- -------
INR60.00 Million Cash Credit C (Assigned)
INR132.50 Million Long-Term Loan C (Assigned)
INR57.50 Million Proposed LT C (Assigned)
Bank Loan Facility
The rating reflects CEPL's weak liquidity profile on account of
cost overruns in its expansion project at Wada, thereby weakening
its debt servicing ability over the near term. This weakness is
partially offset by the extensive experience of CEPL's promoters
in the fabrication industry.
Incorporated in 2005 by Mr. Victor Baby, CEPL is engaged in
fabrication of medium- to heavy-sized equipment, such as heat
exchangers, pressure vessels, and columns for petrochemical and
fertilizer industries. CEPL is in the process of adding to its
fabrication facility at Wada, Maharashtra
CEPL reported a profit after tax (PAT) of INR7.8 million on net
sales of INR151.6 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR11.0 million on net
sales of INR182.3 million for 2008-09.
CLUSTER JEWELLERY: CRISIL Puts 'B+' Rating to INR118MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the bank facilities
of Cluster Jewellery Ltd.
Facilities Ratings
---------- -------
INR118.0 Million Cash Credit Limit B+/Stable (Assigned)
The rating reflects Cluster's average financial risk profile,
marked by a high gearing and a small net worth, and exposure to
risks related to a modest scale of operations in the intensely
competitive gold and diamond-studded jewellery industry. These
rating weaknesses are partially offset by the extensive experience
of Cluster's promoters in the gold and diamond-studded jewellery
business.
Outlook: Stable
CRISIL believes that Cluster will continue to benefit over the
medium term from its promoters' experience in the gold and
diamond-studded jewellery business. The outlook may be revised to
'Positive' if it generates better-than-expected operating revenues
and margin, and net cash accruals, while maintaining its debt
protection metrics. Conversely, the outlook may be revised to
'Negative' if Cluster faces significant deterioration in its
operating cycle, reports lower-than-expected growth in revenues
and margins, or undertakes a large, debt-funded capital
expenditure, leading to the deterioration in its debt protection
metrics.
About Cluster Jewellery
Incorporated in 2005, Cluster manufactures and retails gold and
diamond-studded jewellery ; it also trades in diamonds. The
company is part of the Ahmedabad (Gujarat)-based group of
companies owned by the Shah Family, which has been operating in
the jewellery business since 1940s. Cluster is promoted by Mr.
Mahendra Kumar Shah; its present operations are looked after by
Mr. Mahendra Kumar Shah and his sons, Mr. Dipen Shah and Mr. Daksh
Shah.
Cluster reported a profit after tax (PAT) of INR1.1 million on net
sales of INR381.2 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR0.7 million on net sales
of INR243.4 million for 2008-09.
COTTON WORLD: CRISIL Reaffirms 'BB+' Rating to INR49MM LT Loan
--------------------------------------------------------------
The ratings continue to reflect Cotton World's exposure to risks
relating to small scale of operations, revenue concentration, and
volatility in the value of the Indian rupee. These rating
weaknesses are mitigated by the firm's established relationships
with customers, and above-average business and financial risk
profiles.
Facilities Ratings
---------- -------
INR49.0-Mil. Long-Term Loan BB+/Positive(Reaffirmed)
INR36.0-Mil. Export Packing Credit Limit P4+ (Reaffirmed)
INR2.5-Mil. Letter of Credit Limit P4+ (Reaffirmed)
INR2.5-Mil. Bank Guarantee Limit P4+ (Reaffirmed)
Outlook: Positive
CRISIL believes that Cotton World's business risk profile will
improve over the medium term on the back of its increasing scale
of operations. The rating may be upgraded if the firm
successfully reduces customer concentration in its revenue
profile, and improves its capital structure. Conversely, the
outlook may be revised to 'Stable' if Cotton World reports decline
in profitability, or undertakes a large, debt-funded capital
expenditure.
Update
For 2009-10 (refers to financial year, April 1 to March 31),
Cotton World reported revenues of INR490 million at a growth of 11
per cent over sales of 2008-09. The firm's margins, however, have
deteriorated to 14 per cent from 20 per cent in 2008-09. This is
because of the fact that Cotton World was unable to pass on the
increase in raw material price to its customer. The margins are
estimated to remain at similar levels over the medium term.
However, Cotton World's scale of operations is expected to
increase with revenues of INR540 million for the nine months
through December 2010 and expected to reach around INR700 million
for 2010-11. The newly added capacities contributed to the high
revenues. Cotton World has a strong order book position of INR260
million, which is to be executed before March 2011.
Cotton World remains exposed to risks related to customer
concentration, as Hennes and Mauritz AB, contributes to around 80
per cent of the firm's total revenues. Cotton World had taken
steps to add a few more customers to its portfolio; however, the
plans did not materialize. It is now in the midst of adding
another major customer and has received sample orders for the
same. Addition of new customers to the portfolio remains a key
rating sensitivity factor.
Cotton World has plans to increase its capacity by around 2
million pieces per annum. It has acquired land in Andhra Pradesh
and is expected `to be commissioned by November 2011. The total
cost is INR40 million and likely to be funded partly through debt.
Besides this, the firm has no major capex plans for the near term.
Cotton World reported a profit after tax (PAT) of INR29.70 million
on net sales of INR434.80 million for 2009-10, against a PAT of
INR29.70 million on net sales of INR391.00 million for 2008-09.
About Cotton World
Cotton World, a partnership firm, was set up in 1994 by Mr. B N
Monnappa and his wife. The firm manufactures and exports ready-
made garments for women and children. It has an installed
capacity of about 4 million pieces per annum.
DIASQUA INDIA: CRISIL Reaffirms 'P4' Rating on INR55MM ST Loan
--------------------------------------------------------------
CRISIL's ratings continue to reflect Diasqua India Pvt Ltd's
modest scale of operations, average financial risk profile marked
by high gearing and average debt protection metrics, and exposure
to risks related to high receivables and inventory levels leading
to stretched working capital cycle. These rating weaknesses are
partially offset by Diasqua India's established market position
and promoters' experience in the diamonds industry.
Facilities Ratings
---------- -------
INR75 Million Bills Discounting P4 (Reaffirmed)
INR55 Million Proposed Short-Term P4 (Reaffirmed)
Bank Loan Facility
INR20 Million Packing Credit P4 (Reaffirmed)
Set up in 2006 by Mr. Nimesh Mehta and other members of Mehta
family, Diasqua India exports cut and polished diamonds.
Currently, Mr. Nimesh Mehta, his brother, Mr. Romy Mehta, and
mother, Mrs. Usha Mehta are the shareholders and directors of
Diasqua India. The company deals in fancy and round-cut diamonds.
Diasqua India is part of the Diasqua group of companies, which has
a presence in countries such as Hong Kong, USA, Thailand, Japan,
Australia, Singapore, and Belgium.
Diasqua India reported (provisional figures) a profit after tax
(PAT) of INR5.2 million on net sales of INR477.5 million for 2009-
10 (refers to financial year, April 1 to March 31) against a PAT
of INR5.5 million on net sales of INR407.8 million for 2008-09.
GALLERIA MALL: CRISIL Reaffirms 'B' Rating on INR1.25BB LT Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'B/Stable' rating on Galleria Mall
Developers Pvt Ltd's bank facility.
Facilities Ratings
---------- -------
INR1.25 Billion Proposed LT Loan B/Stable (Reaffirmed)
The rating reflects Galleria's exposure to risks related to
implementation, funding and offtake of its residential-cum-
commercial project in Bengaluru. These weaknesses are partially
offset by the benefits that Galleria derives from the experience
of its management.
Outlook: Stable
CRISIL believes that Galleria will continue to face significant
project implementation and funding risks and moderate offtake risk
over the medium term. The outlook may be revised to 'Positive' if
the company completes its project without time or cost overruns,
or in case of more-than-expected demand for its ongoing project.
Conversely, the outlook may be revised to 'Negative' if the
project faces significant time or cost overruns or if Galleria's
debt servicing ability weakens because of less-than-expected
demand for its project.
Update
The total cost of the project is expected to be INR4500 million,
which will be debt funded to the extent of INR2500 million. The
promoters are funding this through a mix of equity, preference
shares, and unsecured loans. The promoters have so far infused
around INR1.6 billion into the project. The company had initially
contracted a term loan of INR1.25 billion with Union Bank of India
(UBI), while the loan for the remaining INR1.25 billion was yet to
be finalized. However, the term loan with UBI was not disbursed
and the sanction has lapsed. The company is currently in talks
with other banks to finalize the loan for remaining amount.
Currently the project is at the excavation stage and capital
expenditure incurred till date is around INR1600 million,
primarily for acquisition and excavation of land. This has been
funded entirely through promoters' funds. Approvals for the
revised project plans are pending. Construction of the project was
initially expected to be completed by November 2011; however, due
to revision in project plans, there has been a delay and the
project is expected to be completed in around three years.
About Galleria Mall
Set up in 2004, Galleria is a joint venture of the Advantage
Raheja group (AR group) and Wachovia Development Corporation
Ventures Ltd (WDC Ventures), wherein 50.1 per cent stake is held
by the AR group and the remaining 49.9 per cent is held by WDC
Ventures. Galleria's proposed project in Bengaluru is a high-end
residential-cum-commercial property, with total saleable area of
0.93 million square feet. The project is currently at the
excavation stage.
KOHINOOR INDIA: CRISIL Assigns 'B' Rating to INR100MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of Kohinoor India Pvt Ltd.
Facilities Ratings
---------- -------
INR100.0 Million Cash Credit Limit B /Stable (Assigned)
INR3.0 Million Bank Guarantee P4 (Assigned)
INR47.0 Million Letter of Credit P4 (Assigned)
The ratings reflect KIPL's weak financial risk profile, marked by
a small net worth, relatively high gearing, and weak debt
protection metrics, and large working capital requirements. These
rating weaknesses are partially offset by the extensive industry
experience of KIPL's promoters.
Outlook: Stable
CRISIL believes that KIPL will continue to benefit from its
established market position in the tyres and tube business as well
as its trading business. However, KIPL's financial risk profile
will remain weak on account of the company's large working capital
requirements. The outlook may be revised to 'Positive' if KIPL
reports significant improvement in its capital structure, mainly
through fresh equity infusion by promoters, or more-than-expected
increase in its cash accruals, resulting in improved financial
structure. Conversely, the outlook may be revised to 'Negative' in
case pressure on the company's profitability affects its net cash
accruals, or if its working capital management deteriorates.
About Kohinoor India
Set up in 1970 as a partnership firm and converted into a private
limited company in 1989, KIPL manufactures tyres and tubes for
bicycles and rickshaws, primarily catering to the replacement
market. It also trades in rubber compounds, natural rubber and
chemicals used for rubber processing. The company is managed by
Mr. S P Jain and his son. KIPL has a manufacturing facility in
Jalandhar (Punjab), with a capacity of 15 tonnes per day.
KIPL reported a profit after tax (PAT) of INR1.5 million on net
sales of INR828 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR0.9 million on net sales
of INR722 million for 2008-09.
LAKSHMIVEL MILLS: CRISIL Raises Rating on INR325.8MM Loan to 'B-'
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term loan and cash
credit facility of Lakshmivel Mills Pvt Ltd (LMPL; part of the
Lakshmivel group) to 'B-/Stable' from 'C', while reaffirming the
rating on the bank guarantee facility at 'P4'.
Facilities Ratings
---------- -------
INR325.80 Million Long-Term Loan B-/Stable
(Upgraded from 'C')
INR40.00 Million Cash Credit B-/Stable
(Upgraded from 'C')
INR55.40 Million Bank Guarantee P4 (Reaffirmed)
The upgrade reflects track record of timely servicing of term debt
by LMPL and its group company, Sri Gugan Knitwear Pvt Ltd (Gugan),
supported by an improvement in the group's liquidity. The upgrade
also reflects CRISIL's belief that the Lakshmivel group will
maintain its business risk profile at current level over the
medium term, supported by steady inflow of orders from Eastman
Exports.
The ratings reflect Lakshmivel group's revenue concentration and
susceptibility of its margins to volatility in raw material
prices. Moreover, despite an improvement in the group's liquidity,
one of the group entities, Sri Hari Process (Sri Hari), has
continued to delay in servicing its term loan. These rating
weaknesses are partially offset by the group's established market
position across the value chain in the textile sector, and the
group's moderate financial risk profile marked by moderate gearing
and improved liquidity.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Gugan, LMPL, Sri Hari, and CIBI
International collectively referred to as the Lakshmivel group.
This is because all the group companies are in the textile
business, and come under a common management. Also, the companies
benefit from close business synergies, and have intra-group
financial transactions, a centralized system for procurement of
raw materials, and marketing arrangements.
Outlook: Stable
CRISIL believes that the Lakshmivel group will maintain its
business risk profile over the medium term, supported by its
established market position and sizeable order book. The group's
financial risk profile is expected to remain moderate over the
medium term, supported by healthy cash accruals. The outlook may
be revised to 'Positive' if the group diversifies its customer
profile, or significantly increases its scale of operations and
improves its operating margin, leading to increase in its cash
accruals. Conversely, the outlook may be revised to 'Negative' if
the group undertakes a larger-than-expected, debt-funded capital
expenditure programme, thereby weakening its capital structure, or
reports significantly lesser-than-expected cash accruals because
of reduction in inflow of orders or decline in operating margin.
About the Group
The Lakshmivel group was set up in 1991 by Mr. G Sakthivel and his
wife, Mrs. S Punithavathi. The group's operations cover the entire
value chain of the textile business. LMPL was set up in 2006; it
manufactures cotton yarn, primarily for Gugan and CIBI. LMPL has a
capacity of 12,000 spindles. CIBI, the group's flagship entity,
manufactures knitted garments. Sri Hari, a proprietary concern,
undertakes activities such as washing, compacting, embroidery,
printing, and other processes in the textile value chain. Gugan
was set up in 1999; it manufactures fabric and has capacity to
produce around 100 tonnes of fabric per day. The group has three
windmills, with an aggregate capacity of 1.75 megawatts.
The Lakshmivel group reported a profit after tax (PAT) of INR92.50
million on net sales of INR3.72 billion for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR8.80
million on net sales of INR3.06 billion for 2008-09.
M.G.B. MOBILES: CRISIL Assigns 'B+' Rating to INR20 Mil. Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the bank facilities
of M.G.B. Mobiles.
Facilities Ratings
---------- -------
INR90.00 Million Cash Credit B+/Stable (Assigned)
INR20.00 Million Term Loan B+/Stable (Assigned)
The rating reflects MGB's large working capital requirements and
weak financial risk profile, marked by high gearing and low
profitability. These weaknesses are partially offset by MGB's
healthy relationship with its main supplier, Mahindra & Mahindra
Ltd (M&M, rated 'AA+/Stable/P1+' by CRISIL), and its established
market position in the automobile dealership industry.
Outlook: Stable
CRISIL believes that MGB's business risk profile will remain
stable over the medium term, backed by its established market
position as an authorised dealer of M&M. The outlook may be
revised to 'Positive' if MGB is successful in stabilising
operations at its new facility, and increases its revenues and
profitability, while improving its capital structure through
equity infusion. Conversely, the outlook may be revised to
'Negative' if the firm undertakes a larger-than-expected debt-
funded capital expenditure programme, its revenues and
profitability decline sharply, or in case of time or cost overruns
in project implementation, or if significant capital withdrawals
by partners lead to deterioration in the financial risk profile.
About M.G.B. Mobiles
Established as a partnership firm in 2003 by Mrs. M Usha Raghunath
and her sons, MGB is an authorised dealer of passenger and light
commercial vehicles of M&M, Mahindra Renault Pvt Ltd, and Mahindra
Navistar Automotives Ltd. It also sells spares and services
passenger and light commercial vehicles. MGB is the sole dealer of
passenger vehicles in the Ananthapur and Kadapa districts of
Andhra Pradesh, and one of two dealers of commercial vehicles in
Kadapa. The firm has two showrooms and workshops, one each in
Ananthapur and Kadapa. The firm is setting up another showroom in
Ananthapur at a cost of around INR28 million. It is expected to be
operational by the end of March 2011.
MGB reported a profit after tax (PAT) of INR2.8 million on net
sales of INR525 million for 2009-10 (refers to financial year,
April 1 to March 31) as against a PAT of INR2.6 million on net
sales of INR441 million for 2008-09.
MITHILA MOTORS: CRISIL Reaffirms 'BB+' Rating on INR50MM Term Loan
------------------------------------------------------------------
CRISIL has reaffirmed its rating of BB+/Stable to the bank
facilities of Mithila Motors Ltd.
Facilities Ratings
---------- -------
INR150.0 Million Cash Credit BB+/Stable (Reaffirmed)
INR50.0 Million Term Loan BB+/Stable (Reaffirmed)
The rating continues to reflect MML's weak financial risk profile
and exposure to risks relating to intense competition in the
automobile dealership market. However, these weaknesses are
partially offset by the promoters' long experience and the
company's established presence in the automobile dealership market
in Jharkhand.
Outlook: Stable
CRISIL believes that MML will maintain a favourable business risk
profile backed by established presence and relationship with
principal, Tata Motors Ltd. The outlook may be revised to
'Positive' if the company's operating margins and sales volumes
increase, leading to a sustained improvement in the financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
cash accruals decline sharply or if a large, debt-funded capital
expenditure weakens the company's capital structure.
Update
MML's performance for 2009-10 (refers to financial year, April 1
to March 31) was largely inline with CRISIL's expectations and
company continues to be a market leader in Jharkhand region with a
market share of -35%. The company's profitability was higher than
CRISIL's expectations on account of improved profitability during
2H FY10 compared to 1H FY10. Company's liquidity is likely to
remain stretched on account of high limit utilization of around
85% for the period April 2010 to December 2010.
About Mithila Motors
Set up in 1958, MML is an authorised dealer for TML's commercial
vehicles (CVs) for Jharkhand. MML has eight showrooms and two
workshops apart from two onsite service centres in Jharkhand. The
company is an authorised dealer for entire Jharkhand. MML is one
of 5 CV dealer of TML in the Jharkhand region and is the market
leader with a market share of 35-40 percent in the Jharkhand
region. (TML has a market share of 98% in the CV segment in
Jharkand) MML is the only dealer in Jharkhand having the entire
range of TML CVs.
MML reported a profit after tax (PAT) of INR17.7 million on net
sales of INR2.4 billion for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR16.2 million on net
sales of INR2.1 billion for 2008-09.
R.K. EXPORTS: CRISIL Rates INR180 Million Letter of Credit at 'P4'
------------------------------------------------------------------
CRISIL has assigned its 'P4' rating to the letter of credit
facility of R.K. Exports.
Facilities Ratings
---------- -------
INR180.0 Million Letter of Credit P4 (Assigned)
The rating reflects RKE's weak financial risk profile, marked by
small net worth, high gearing, weak debt protection metrics,
significant exposure to group entities in the real estate segment,
small scale of operations, and low profitability. These rating
weaknesses are partially offset by the extensive experience of RK
Exports' promoters in the edible oil trading business.
Incorporated in 1992 by Mr. Rajinder Mittal, RK Exports trades in
edible oil, mainly crude palm oil and soybean oil. The firm
imports from Singapore, Malaysia, South American countries, etc,
and makes high sea sales.
Besides RK Exports, the promoter has incorporated several other
entities engaged in the agricultural and real estate segments.
RK Exports reported a profit after tax (PAT) of INR4 million on
net sales of INR516 million for 2009-10 (refers to financial year,
April 1 to March 31) as against a PAT of INR13 million on net
sales of INR424 million for 2008-09.
RAJ GEMS: CRISIL Reassigns 'B+' Rating to INR180MM Packing Credit
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the long-term bank
facilities of Raj Gems; the facilities were earlier short-term
facilities and were rated 'P4' by CRISIL.
Facilities Ratings
---------- -------
INR180.0 Million Packing Credit B+/Stable (Reassigned)
The rating continues to reflect RG's weak financial risk profile,
marked by a small net worth and weak debt protection metrics, and
small scale of operations. These rating weaknesses are partially
offset by the benefits that RG derives from its promoters'
experience in the diamond industry, as reflected in its above-
average operating margin, and its established position in the
small-size diamond manufacturing business.
Outlook: Stable
CRISIL believes that RG will continue to benefit over the medium
term from its position in the small-size diamond manufacturing
industry and its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if RG's scale of operations
and profitability increase significantly. Conversely, the outlook
may be revised to 'Negative' if RG reports unexpected losses
arising from the non-recovery of export receivables or losses on
inventories.
Update
RG has achieved a turnover of about INR1.0 billion in 2009-10
(refers to financial year, April 1 to March 31), against that of
INR1.1 billion in 2008-09. RG's operating margin also declined to
about 3.9 per cent in 2009-10 from 4.2 per cent in the previous
year. The firm has registered sales of about INR670 million for
the first nine months of 2010-11 and is expected to achieve a
turnover of INR1.1 billion to INR1.2 billion in 2010-11. RG's
operating profitability is expected to remain about 4 per cent
over the medium term. The partners have infused fresh capital of
about INR36.9 million in 2009-10 resulting in increase in RG's net
worth, which stood at INR212 million as on March 31, 2010, against
that of INR168.5 million as on March 31, 2009.
For 2009-10, RG reported a profit after tax (PAT) of INR6.5
million on net sales of INR1.01 billion, against a PAT of INR6.8
million on net sales of INR1.07 billion in the preceding year.
About Raj Gems
Set up in 1978 as a partnership firm, RG manufactures and trades
in polished yellow diamonds of all shapes. Headquartered in
Mumbai (Maharashtra), the firm has its own manufacturing unit in
Surat (Gujarat). The firm specialises in manufacturing yellow
diamonds of all shapes, and of sizes up to 3 carats. The business
is managed by the firm's promoters, Mr. Jayantilal B Shah and his
brother, Mr. Pravinchandra B Shah.
RAMANAND STEEL: CRISIL Cuts Rating on INR190MM Cash Credit to 'D'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facility of Ramanand
Steel Ltd, part of the RSL group, to 'D' from 'B+/Stable'.
Facilities Ratings
---------- -------
INR190.0 Million Cash Credit Limit D (Downgraded from
B+/Stable)
The downgrade reflects the RSL group's continuously overdrawn cash
credit facilities for more than 30 days and delays by the group in
repaying it quarterly term loan instalments. The RSL group has
been facing significant liquidity pressure over the past few
months, primarily because of decline in prices of ingots. Owing to
the decline in prices, the group reduced the volume of its sales
in the market resulting in pile-up of inventories. This resulted
in the RSL group's liquidity remaining weak, forcing the group to
resort to ad hoc facilities to manage its stretched working
capital position.
The RSL group ceased production operations in both RSL and Silver
Ispat Pvt Ltd for the three months through October 2010 . The
group failed to repay the ad hoc facilities that had fallen due
during the period. As a result, the cash credit facilities of the
group remained continuously overdrawn for over 30 days in both RSL
and SIPL. These ad hoc facilities were repaid only in December
2010.
In November2010, the RSL group resumed production operations in
both companies. However, in spite of resumption of operations, the
group continues to have weak liquidity. In the first week of
January 2010, to assuage its weak liquidity, the group had
obtained ad hoc limits for the cash credit facilities of both RSL
and SIPL. Though these ad hoc limits were sanctioned only for a
week till February 14, 2010, these ad hoc facilities have not been
repaid by the group. This resulted in the group continuously
overdrawing its cash credit facilities for more than 30 days.
Furthermore, even the December instalment of the term loan
obtained in RSL continues to remain unpaid for more than a month
and a half.
CRISIL believes that the RSL group will continue to have weak
liquidity over the near to medium term.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of RSL and SIPL, together referred to
herein as the RSL group. This is because RSL and SIPL have
significant operational and management linkages with each other
and are in the same line of business.
The RSL group continues to have a below-average financial risk
profile, marked by a small net worth, weak debt protection
metrics, and a high gearing. The group also has a marginal market
share, and is exposed to risks related to cyclicality in the steel
industry and limited backward integration. These rating weaknesses
are partially offset by the benefits that the RSL group derives
from its promoters' experience in the secondary steel
manufacturing industry.
About the Group
The RSL group manufactures mild steel (MS) ingots and pig iron.
Its production facilities are located in Sinnar (Maharashtra). RSL
has a production capacity of 28,800 tonnes per annum (tpa) for MS
ingots and 7200 tpa for pig iron. SIPL has capacity of 18,000 tpa
for MS ingots. The RSL group is in the advanced stages of setting
up additional capacity of 10,800 tpa for manufacturing stainless
steel billets and 48,600 tpa for MS billets under RSL.
SK WHEELS: Fitch Assigns National Long-Term Rating at 'BB-'
-----------------------------------------------------------
Fitch Ratings has assigned India's SK Wheels Private Ltd a
National Long-Term Rating of 'BB-(ind)' with Stable Outlook. The
agency has also assigned SKWL's INR234 million term loans a
National Long-Term Rating of 'BB-(ind)' and its INR300 million
non-fund based limits an 'F4(ind)' rating.
The ratings reflect SKWL's market position as one of the largest
sellers of Maruti Suzuki cars in Western India. The ratings also
reflect the company's above-industry profit margins of around 7.8%
in FY11, though the margins are likely to moderate over the next
two years. Fitch notes that revenues from SKWL's four-wheeler
business increased by around 3% in 9MFY11, after declining in FY09
and FY10, and are expected to benefit from its agreements to
supply cars to large companies like ONGC and Reliance.
The ratings are constrained by the fall in the company's revenues
in FY09 and FY10 as it is exiting its lower margin two- and three-
wheeler vehicle business. The ratings are also affected by SKWL's
weak credit metrics and tight liquidity position due to its high
working capital requirements. In FY10, SKWL had financial
leverage (total adjusted debt/operating EBITDAR) of 5.39x (FY09:
2.93x) and interest coverage of 1.28x (FY09: 1.91x).
Positive rating guidelines include any sustained reduction in
SKWL's financial leverage to below 5.0x and interest coverage
ratio to above 1.5x. Conversely, any further deterioration in the
company's financial leverage to above 7.5x level and interest
coverage ratio to below 1.1x could result in a negative rating
action.
SKWL is a dealer for Maruti Suzuki India Ltd in Mumbai, Thane and
Raigarh. It also provides after-sales services, related
accessories and financial services for the selling and purchasing
of cars. In FY10, SKWL recorded revenues of INR1.1 billion,
operating EBITDA margin of 7.8% and net income of INR15.4 million.
Majority (70.7%) of the revenues were from the sale of four
wheelers, with the service income accounting for 11% of the total
revenues.
SONA OKEGAWA: Fitch Upgrades National Long-Term Rating to 'BB'
--------------------------------------------------------------
Fitch Ratings has upgraded India's Sona Okegawa Precision Forgings
Limited's National Long-Term Rating to 'BB(ind)' from 'BB-(ind)'.
The Outlook is Stable. The agency has also taken these rating
actions on SOPFL's bank loans:
-- INR1977.8m long-term loans (enhanced from INR1,130.4m):
upgraded to 'BB(ind)' from 'BB-(ind)';
-- INR280m fund-based limits (enhanced from INR200m): upgraded
to 'BB(ind)' from 'BB-(ind)' and affirmed at 'F4(ind)'; and
-- INR125m non-fund based limits (reduced from INR180m):
upgraded to 'BB(ind)' from 'BB-(ind)' and affirmed at
'F4(ind)'.
The upgrades reflect the significant improvement in SOPFL's
consolidated operating profitability and financial leverage.
Performance of its international subsidiaries and standalone
operations improved in FY10 and 9MFY11. The consolidated
operating EBIDTAR was INR837 million in 9MFY11 and INR685 million
in FY10 compared to negative EBIDTAR of INR1,218 million in FY09.
Furthermore, SOPFL witnessed a net profit of INR233 million in
9MFY11 at the consolidated level compared to net losses in FY09
and FY10.
In FY10, SOPFL's standalone revenues grew by 27% yoy to INR1,492
million and its operating EBIDTAR margin improved to 24.9% (FY09:
18.6%). Its standalone financial leverage (net adjusted
debt/operating EBIDTAR) improved to 6.5x in FY10 (FY09: 3.4x) due
to higher internal cash flows, which also reduced its short-term
debt; SOPFL's modest capex plans kept its total adjusted
borrowings in FY10 at INR2,479 million, similar to FY09 levels
(INR2,481 million). Fitch notes that the company has initiated a
capex plan of INR458 million, which is spread over FY11-FY12 and
will be funded through debt (to the extent of INR280 million) and
internal accruals. This shall likely keep SOPFL's standalone
credit metrics at current levels over the short-term till FY12.
SOPFL's ratings take into account the experience and technical
expertise of its promoters -- India's Sona Group (75%) and Japan's
Mitsubishi Materials Corporation (MMC, 25%) -- in the auto
component industry. SOPFL has a diversified portfolio of
customers across the automobile industry, with limited customer
concentration. Maruti Suzuki India Limited, which was SOPFL's
largest customer till FY09, has formed a separate entity - Suzuki
Powertrain India Limited, resulting in two customers for the
company. However, they collectively accounted for around 20% of
SOPFL's total revenues in FY10, comparable to FY09 levels when
MSIL was a single entity. SOPFL's technology agreement with MMC
and its access to precision forging technology of its subsidiaries
have strengthened its business profile. The agency has taken a
consolidated view of SOPFL's and its subsidiaries' business and
financial positions.
The ratings are constrained by SOPFL's high consolidated financial
leverage on account of significant borrowings in its international
subsidiaries, which were undertaken at the time of acquisition of
precision forging facilities in Germany and North America. The
company's international subsidiaries' profitability was low in
FY10, as there were net losses at the consolidated level, though
it improved compared to FY09 levels. SOPFL extended an inter-
company loan of INR500 million to its subsidiaries during FY09 and
FY10 to support their operations. The same, along with accrued
interest, was converted into cumulative redeemable preference
shares in August 2010.
Negative rating guidelines include a significant decline in
SOPFL's profitability or an unanticipated increase in its
borrowings, resulting in deterioration in consolidated financial
leverage. Positive rating guidelines include an improvement in
the profitability of international subsidiaries and consistent de-
leveraging on a consolidated basis.
SOPFL is a JV between Sona Autocomp Holding (the investment
holding arm of the Sona Group) and MMC. The company commenced
operations in 1998, and is engaged in the manufacturing of
precision forged bevel gears, differential case assemblies and
synchronizer rings at its two manufacturing plants in Gurgaon and
Pune.6 SOPFL acquired the precision forging facilities of
ThyssenKrupp Prazisionsschmiede GmBH in January 2008, and
consequently made them subsidiaries. In 9MFY11, its standalone
revenue and profitability (EBIDTA) stood at INR1565.9 million and
INR376 million, respectively.
SILVER ISPAT: CRISIL Cuts Rating on INR90MM Cash Credit to 'D'
--------------------------------------------------------------
CRISIL has downgraded its rating on the bank facility of Silver
Ispat Pvt Ltd, part of the RSL group, to 'D' from 'B+/Stable'.
Facilities Ratings
---------- -------
INR90.0 Million Cash Credit Limit D (Downgraded from
B+/Stable)
The downgrade reflects the RSL group's continuously overdrawn cash
credit facilities for more than 30 days and delays by the group in
repaying it quarterly term loan installments.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of RSL and SIPL, together referred to
herein as the RSL group. This is because RSL and SIPL have
significant operational and management linkages with each other
and are in the same line of business.
The RSL group has been facing significant liquidity pressure over
the past few months, primarily because of decline in prices of
ingots. Owing to the decline in prices, the group reduced the
volume of its sales in the market resulting in pile-up of
inventories. This resulted in the RSL group's liquidity remaining
weak, forcing the group to resort to ad hoc facilities to manage
its stretched working capital position.
The RSL group ceased production operations in both Ramanand Steel
Ltd and SIPL for the three months through October 2010. During
this period, the group failed to repay the ad hoc facilities that
had fallen due during the period. As a result, the cash credit
facilities of the group remained continuously overdrawn for over
30 days in both RSL and SIPL. These ad hoc facilities were repaid
only in December 2010.
In November2010, the RSL group resumed production operations in
both companies. However, in spite of resumption of operations, the
group continues to have weak liquidity. In the first week of
January 2010, to assuage its weak liquidity, the group had
obtained ad hoc limits for the cash credit facilities of both RSL
and SIPL. Though these ad hoc limits were sanctioned only for a
week till February 14, 2010, these ad hoc facilities have not been
repaid by the group. This resulted in the group continuously
overdrawing its cash credit facilities for more than 30 days.
Furthermore, even the December installment of the term loan
obtained in RSL continues to remain unpaid for more than a month
and a half.
CRISIL believes that the RSL group will continue to have weak
liquidity over the near to medium term.
The RSL group continues to have a below-average financial risk
profile, marked by a small net worth, weak debt protection
metrics, and a high gearing. The group also has a marginal market
share, and is exposed to risks related to cyclicality in the steel
industry and limited backward integration. These rating
weaknesses are partially offset by the benefits that the RSL group
derives from its promoters' experience in the secondary steel
manufacturing industry.
About the Group
The RSL group manufactures mild steel (MS) ingots and pig iron.
Its production facilities are located in Sinnar (Maharashtra). RSL
has a production capacity of 28,800 tonnes per annum (tpa) for MS
ingots and 7200 tpa for pig iron. SIPL has capacity of 18,000 tpa
for MS ingots. The RSL group is in the advanced stages of setting
up additional capacity of 10,800 tpa for manufacturing stainless
steel billets and 48,600 tpa for MS billets under RSL.
SRI GUGAN: CRISIL Upgrades Rating on INR88.3-Mil. LT Loan to 'B-'
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term loan and cash
credit facility of Sri Gugan Knitwears Pvt Ltd (Gugan; part of the
Lakshmivel group) to 'B-/Stable' from 'C', while reaffirming the
rating on the bank guarantee facility at 'P4'.
Facilities Ratings
---------- -------
INR88.30 Million Long-Term Loan B-/Stable (Upgraded from 'C')
INR15.00 Million Cash Credit B-/Stable (Upgraded from 'C')
INR33.00 Mil. Letter of Credit P4 (Reaffirmed)
INR44.30 Million Bank Guarantee P4 (Reaffirmed)
The upgrade reflects track record of timely servicing of term debt
by Gugan and its group company, Lakshmivel Mills Pvt Ltd,
supported by an improvement in the group's liquidity. The upgrade
also reflects CRISIL's belief that the Lakshmivel group will
maintain its business risk profile at current level over the
medium term, supported by steady inflow of orders from Eastman
Exports.
The ratings reflect Lakshmivel group's revenue concentration and
susceptibility of its margins to volatility in raw material
prices. Moreover, despite an improvement in the group's
liquidity, one of the group entities, Sri Hari Process (Sri Hari),
has continued to delay in servicing its term loan. These rating
weaknesses are partially offset by the group's established market
position across the value chain in the textile sector, and the
group's moderate financial risk profile marked by moderate gearing
and improved liquidity.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Gugan, LMPL, Sri Hari, and CIBI
International (CIBI), collectively referred to as the Lakshmivel
group. This is because all the group companies are in the textile
business, and come under a common management. Also, the companies
benefit from close business synergies, and have intra-group
financial transactions, a centralised system for procurement of
raw materials, and marketing arrangements.
Outlook: Stable
CRISIL believes that the Lakshmivel group will maintain its
business risk profile over the medium term, supported by its
established market position and sizeable order book. The group's
financial risk profile is expected to remain moderate over the
medium term, supported by healthy cash accruals. The outlook may
be revised to 'Positive' if the group diversifies its customer
profile, or significantly increases its scale of operations and
improves its operating margin, leading to increase in its cash
accruals. Conversely, the outlook may be revised to 'Negative' if
the group undertakes a larger-than-expected, debt-funded capital
expenditure programme, thereby weakening its capital structure, or
reports significantly lesser-than-expected cash accruals because
of reduction in inflow of orders or decline in operating margin.
About the Group
The Lakshmivel group was set up in 1991 by Mr. G Sakthivel and his
wife, Mrs. S Punithavathi. The group's operations cover the
entire value chain of the textile business. LMPL was set up in
2006; it manufactures cotton yarn, primarily for Gugan and CIBI.
LMPL has a capacity of 12,000 spindles. CIBI, the group's flagship
entity, manufactures knitted garments. Sri Hari, a proprietary
concern, undertakes activities such as washing, compacting,
embroidery, printing, and other processes in the textile value
chain. Gugan was set up in 1999; it manufactures fabric and has
capacity to produce around 100 tonnes of fabric per day. The group
has three windmills, with a combined capacity of 1.75 megawatts.
The Lakshmivel group reported a profit after tax (PAT) of INR92.50
million on net sales of INR3.72 billion for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR8.80
million on net sales of INR3.06 billion for 2008-09.
SHREE TIRUPATI: CRISIL Assigns 'BB' Rating to INR27.5MM Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank loan
facilities of Shree Tirupati Balajee Agro Trading Company Pvt Ltd.
Facilities Ratings
---------- -------
INR40.0 Million Cash Credit BB/Stable (Assigned)
INR27.5 Million Term Loan BB/Stable (Assigned)
INR80.0 Million Packing Credit P4+(Assigned)
INR30.0 Million Letter of Credit P4+(Assigned)
The ratings reflect STB's large debt-funded capital expenditure
(capex) and small scale of operations in the highly fragmented
packaging industry. These rating weaknesses are partially offset
by STB's established presence in the small bag segment with a
robust and diversified client roster.
Outlook: Stable
CRISIL believes that STB will continue to benefit over the medium
term from the healthy demand for woven sacks and its established
customer base. The outlook may be revised to 'Positive' if its
capex programmes are completed on schedule and its enhanced
capacities stabilise resulting in high cash flow generation and
improvement in debt protection metrics. Conversely, the outlook
may be revised to 'Negative' if there is a delay in the completion
of projects, resulting in lower-than-expected cash flows,
therefore adversely affecting STB's debt protection metrics.
About Shree Tirupati
STB manufactures high density polyethylene sacks, polypropylene-
woven laminated and unlaminated sacks, jumbo bags, fabric sacks,
flexible intermediate bulk containers1 , tarpaulins, web belts,
sling bags, narrow woven belts, flat and circular bags, and fabric
sacks, used as packaging material by the foodgrain, fertilizer,
cement, and chemical industries. The company is enhancing its
small bag manufacturing capacity from existing 7600 tonne per
annum (tpa) to 9600 tpa for a capital outlay of INR40 million.
STB will also undertake a capex to set up a new tarpaulin
manufacturing unit for an investment of INR140 million.
STB reported a profit after tax (PAT) of INR5.7 million on net
sales of INR511.1 million for 2009-10 (refers to financial year,
April 1 to March 31) as against a PAT of INR2.7 million on net
sales of INR429.8 million for 2008-09.
Flexible Intermediate Bulk Containers (FIBC), find application in
bulk packaging system and can have a capacity in the range of 500-
2000 kilogram.
UNITED ELECTRICAL: CRISIL Downgrades Rating on Cash Credit to 'B-'
------------------------------------------------------------------
CRISIL has revised its outlook on the cash credit facility of
United Electrical Industries Ltd to 'Negative' from 'Stable',
while downgrading its rating on the same to 'B-' from 'B+'. The
rating on the bank guarantee has been reaffirmed at 'P4'.
Facilities Ratings
---------- -------
INR40.00 Million Cash Credit B-/Negative (Downgraded from
'B+'; Outlook
revised from
'Stable')
INR60.00 Million Proposed Cash B-/Negative (Assigned)
Credit
INR20.00 Million Proposed Letter P4 (Assigned)
Of Credit
INR50.00 Million Proposed Bank P4 (Assigned)
Guarantee
INR30.00 Million Bank Guarantee P4 (Reaffirmed)
The rating action reflects significant deterioration in UEIL's
business and financial risk profiles because of continued losses
in the company's new product division and significant erosion in
the UEIL's net worth. In 2009-10 (refers to financial year,
April 1 to March 31), the company switched its product line to
manufacturing electronic liquid crystal display (LCD) meters from
the conventional electromechanical meters. However, because of
quality and supply issues from one of its vendors, there were mass
scale rejections of meters supplied to Kerala State Electricity
Boards (KSEB), one of its key customers. This, along with
penalties of 10 per cent imposed by KSEB for not honoring the
deliver schedule, led to operating losses and hence, a sharp
decline in UEIL's net worth to INR1.8 million in 2009-10 from
INR26.6 million in 2008-09; this in turn led to deterioration in
the financial risk profile of the company. The rating action also
factors in CRISIL's belief that UEIL's financial risk profile will
continue to remain constrained over the medium term, unless there
is a significant infusion of equity by the Government of Kerala
(GoK).
The ratings continue to reflect UEIL's exposure to intense
competition. The impact of these weaknesses is mitigated by the
company's vast presence in the energy meter business.
Outlook: Negative
CRISIL believes that UEIL's financial risk profile will
deteriorate over the medium term because of limited revenue
visibility and continued losses in the manufacture of the
electronic LCD meter. The rating may be downgraded in case of
weaker-than-expected business performance or further deterioration
in the financial risk profile. Conversely, the outlook may be
revised to 'Stable' if there is substantial growth in orders,
aided by sustainable improvement in UEIL's profitability margins,
or if there is a significant equity infusion by the GoK.
About United Electrical
Set up in 1950, UEIL manufactures energy meters. GoK holds a stake
of 97.2 per cent in the company. UEIL sells its products under
the Unilec brand name, with KSEB being the biggest customer.
UEIL posted a loss of INR24.9 million on net sales of INR216.1
million for 2009-10, against a profit after tax of INR7 million on
net sales of INR426 million for 2008-09.
=================
I N D O N E S I A
=================
MANDALA AIRLINES: To Resume Flight Operations Soon
--------------------------------------------------
Antara News reports that Mandala Airlines is poised to soon resume
flight operations after a two-month stoppage due to debt problems
with candidate creditors and strategic partners.
"We want (to resume the flight operations) very soon," Mandala
president director Diono Nurjadin told reporters on Thursday after
a closed meeting on the restructuring of its debt with candidate
creditors and strategic partners in Jakarta, according to Antara
News.
Antara News relates that Mr. Nurjadin said he was optimistic the
airline could resume business after the candidate creditors and
strategic partners had agreed to the terms outlined by Mandala on
the solution of its financial obligations.
According to the news agency, Mr. Nurjadin said that a vote was
conducted among the candidate creditors and strategic partners to
seek a final agreement on the terms to be applied and the result
was that the majority agreed on the share conversion option.
"We've therefore gained the support of the majority of the
creditors to carry on the arbitration with share conversion
option," Antara News quotes Mr. Nurjadin as saying. The company
will seek endorsement from the panel of judges at the Commercial
Court at Central Jakarta on March 2, Mr. Nurjadin added, Antara
News relates.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 14, 2011, Antara News said Mandala Airlines has decided to
temporarily stop its operations beginning January 12 due to
financial problems. Herry Bakti S Gumay, director general of air
transportation, said Mandala would concentrate on settling its
financial problems first especially "with regard to its
obligations to its aircraft lessors." Mr. Gumay said it would
depend upon Mandala's readiness when it would reopen its
operations.
Based in Jakarta, Indonesia, Mandala Airlines is a low-cost
airline. The carrier operates scheduled services to 3
international and 17 domestic destinations, using a fleet of
narrow body Airbuses.
* Fitch Gives Positive Outlook on Indonesia; Affirms 'BB+' Rating
-----------------------------------------------------------------
Fitch Ratings has revised Indonesia's Outlooks to Positive from
Stable. Its ratings have been affirmed at Long-term foreign and
local currency Issuer Default 'BB+', Short-term foreign currency
IDR 'B' and Country Ceiling 'BBB-'.
"The Positive Outlook reflects Fitch's view that Indonesia's
favorable macroeconomic prospects are likely to see the credit
profile strengthen further over the next twelve to eighteen
months, despite near-term risks from inflation and potentially
volatile capital flows," said Andrew Colquhoun, Senior Director
and Head of Asia-Pacific Sovereign Ratings at Fitch. "Faster
progress in tackling long-standing weaknesses in economic and
credit fundamentals including the low tax take, infrastructure
deficiencies and corruption, would further support the case for an
upgrade."
Indonesia's economy grew 6.1% in 2010 after a mild slowdown to
4.6% in 2009, consolidating the five-year average at 5.7% pa, well
ahead of the 'BB' and 'BBB' range medians (each 3.6% pa). Growth
is being driven by domestic demand, supported by a pick-up in the
investment rate to 32.5% of GDP in 2010, up from 24.9% in 2007.
Indonesia's growth has not been accompanied by the emergence of
potentially risky external imbalances - rising savings rates have
largely matched rising investment, and the economy has run a
modest current account surplus since 1998. Moreover, investment
is well-diversified across the industrial and service sectors as
well as the traditionally-important mining industry. Indonesia
needs faster growth to narrow the income differential with rated
peers; average income of US$3,000 in 2010 compares poorly with the
'BB' median of US$5,400 and the 'BBB' median of US$7,700.
Inflation poses a near-term risk to economic prospects. CPI
inflation of 7% at end-2010 exceeded Bank Indonesia's (BI) target
range of 4%-6%. BI hiked its key policy rate in February to 6.75%
from 6.5% and signalled its willingness to act more firmly to
contain inflation expectations, while citing the role of food
prices (36% of the basket and up 17.7% to end-December). However,
Indonesia has a history of higher and more volatile inflation than
rated peers, while BI's focus on its inflation target has been
tempered by caution over attracting excessive capital inflows.
Fitch expects inflation will average 6.5% over 2011, but a more
severe inflation shock than the agency expects that is sufficient
to damage economic and financial stability would weaken the case
for positive rating action.
Indonesia's gross government debt to GDP ratio fell again to 26%
of GDP by end-2010, well below the 'BB' median of 41% and the
'BBB' median of 37%. The budget deficit came in at 0.6% in 2010,
extending a run of low deficits below 2% since 2002 that has
contributed to the debt ratio reduction. The low revenue take
(just 16% of GDP in 2010) continues to weigh on the ratings,
although even the debt/revenue ratio is projected to drop from
163% at end-2010 to nearer the projected 'BBB' median of 126% by
2012. Nonetheless, low revenues diminish fiscal flexibility and
constrain resources available for public investment, all of which
weigh on the ratings.
Official foreign reserves rose to a record US$96.2bn by end-2010,
worth some seven months of imports and up 46% on the end-2009
figure. FDI inflows were also strong in 2010 at US$9.8bn (1.4% of
GDP). A long run of current account surpluses has helped take
Indonesia's net external debt down to the 'BB' median of 9% of
GDP. Strengthening external liquidity supports the ratings,
although portfolio capital inflows were a strong US$14bn in 2010,
and any reversal in the event of a shift in investor sentiment
could undo some of the improvement.
Long-standing weaknesses in economic and credit fundamentals
including deficiencies in physical infrastructure and a high
reported prevalence of corruption weigh on the ratings. Faster
progress in tackling these would help secure Indonesia's prospects
for sustained growth and would support the ratings. Indonesia's
steady consolidation as a democracy leaves political stability as
a rating strength relative to the 'BB' category.
=========
J A P A N
=========
JAPAN AIRLINES: To Receive JPY20-Bil. Investment from 8 Firms
-------------------------------------------------------------
Kyodo News reports that eight companies, including Daiwa
Securities Group Inc. and Tokio Marine & Fire Insurance Co, are
considering making JPY10 billion to JPY20 billion investments in
Japan Airlines Corp.
Kyodo News, citing sources close to the matter, says the eight
firms, which also including JTB Corp and Kyocera Corp, will
provide the money in addition to the already set JPY350 billion
investment by the government-backed Enterprise Turnaround
Initiative Corp. of Japan.
Sources told Kyodo News that the investor companies aim to enhance
JAL's financial base amid growing concerns over a rise in fuel
prices following the unrest in the Middle East and North Africa.
The remaining four companies are Sompo Japan Insurance Inc, Mitsui
Sumitomo Insurance Co, Aioi Nissay Dowa Insurance Co, and Hankyu
Travel International Co, Kyodo News discloses.
According to Kyodo News, JAL will also seek additional investments
from trading houses and others, while several major banks,
including the Bank of Tokyo-Mitsubishi UFJ, have already agreed to
extend around 280 billion yen in total.
Given this support, Kyodo News notes, JAL aims to repay JPY320
billion of debts by the end of March and shift to an independent
reconstruction process in April from the court-administered
rehabilitation.
About Japan Airlines
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
Japan Airlines Corporation, Japan Airlines International Co.,
Ltd., and JAL Capital Co., Ltd., on January 19, 2010, filed
petitions to commence corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization January 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in
New York (Bankr. S.D.N.Y. Case No. 10-10198). The Company
estimated debts at $28 billion.
JAPAN AIRLINES: To Retire Last Boeing 747 Jet on March 1
--------------------------------------------------------
Kyodo News reports that Japan Airlines Corp.'s remaining Boeing
747 jet will take off for its final flight on Tuesday, marking the
end of the carrier's fleet of the wide-body jet that has linked
key cities in Japan and abroad for roughly four decades.
Kyodo relates that JAL, which used to have one of the world's
biggest fleets of Boeing 747 jumbo jets, is retiring the popular
plane earlier than planned as part of restructuring necessitated
by its bankruptcy last year.
The plane model proved highly successful for U.S. aircraft
manufacturer Boeing Co., with global orders topping 1,400 for the
series, which was inaugurated for commercial flights in 1970,
Kyodo notes.
In 1970, Kyodo says, JAL started flying a Boeing 747-100 aircraft,
the first in the series, on its Tokyo-Honolulu route. It
subsequently acquired a total of 100 jumbos for passenger services
and 12 jumbos for cargo. At its peak in the 1990s, the airline
was employing around 80 jumbos on domestic and international
routes.
Kyodo notes that some were designed specifically for the Japanese
market to carry as many passengers as possible on routes
restricted by airport flight slots. JAL's domestic version had
around 550 seats.
Kyodo says the former national flag carrier, currently undergoing
rehabilitation, offered a two-day "goodbye" tour for a Boeing 747-
400 in domestic service from Feb 19. Around 450 enthusiasts from
across the country boarded the flight, chatting with pilots at a
party.
One of the major factors behind JAL's move to retire the plane is
its bad fuel economy, Kyodo reports. JAL was gradually retiring
older planes and the bankruptcy accelerated the process.
JAL has no plans at the moment to obtain the new jet, Kyodo adds.
About Japan Airlines
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
Japan Airlines Corporation, Japan Airlines International Co.,
Ltd., and JAL Capital Co., Ltd., on January 19, 2010, filed
petitions to commence corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization January 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in
New York (Bankr. S.D.N.Y. Case No. 10-10198). The Company
estimated debts at $28 billion.
JLOC XXX: Moody's Takes Rating Actions Various Classes of Notes
---------------------------------------------------------------
Moody's Japan K.K. has confirmed/downgraded the ratings on the
Class A through X Trust Certificates issued by JLOC XXX and the
Class 1 through 2 Trust Certificates issued by JLOC XXX Satellite
Trust.
Details are:
-- Class A, downgraded to Baa2 (sf); previously, on January 13,
2011, A2 (sf) placed under review for possible downgrade
-- Class B, downgraded to Ba3 (sf); previously, on January 13,
2011, Baa3 (sf) placed under review for possible downgrade
-- Class C, downgraded to B3 (sf); previously, on January 13,
2011, Ba3 (sf) placed under review for possible downgrade
-- Class D, downgraded to Caa3 (sf); previously, on January 13,
2011, Caa1 (sf) placed under review for possible downgrade
-- Class 1 and Class 2, confirmed at Caa3 (sf); previously, on
January 13, 2011, Caa3 (sf) placed under review for possible
downgrade
-- Class X, downgraded to Baa2 (sf); previously, on January 13,
2011, A2 (sf) placed under review for possible downgrade
-- Deal Name: JLOC XXX Trust/ JLOC XXX Satellite Trust
-- Class: Class A through X Trust Certificates (JLOC XXX Trust),
Class 1 and Class 2 Trust Certificates (JLOC XXX Satellite
Trust)
-- Issue Amount (initial): JPY 333.8 billion (JLOC XXX Trust),
JPY 9.3 billion (JLOC XXX Satellite Trust)
* Dividend: Floating/Fix
* Issue Date: May 9, 2006
-- Final Maturity Date: April, 2014
-- Underlying Asset (initial): Five TMK bonds and JLOC XXX Trust
Certificate backed by properties (JLOC XXX Trust), One TMK
bond baked by properties (JLOC XXX Satellite Trust)
-- Originator: Morgan Stanley Japan Securities Co., Ltd. (as of
the issue date)
-- Arranger: Morgan Stanley Japan Securities Co., Ltd. (as of
the issue date)
JLOC XXX Trust, affected in May 2006, represents the
securitization of five TMK bonds and the JLOC XXX Satellite Trust
Certificates. The JLOC XXX Satellite Trust, effected in May 2006,
represents the securitization of one TMK bond.
The originator transferred one TMK bond to the issuer trust, which
issued the Class 1 through 2 Trust Certificates and then sold them
to investors (JLOC XXX Satellite Trust).
Also, the originator transferred five TMK bonds and one Trust
Certificate to the issuer trust, which issued Class A through X
Trust Certificates and then sold them to investors (JLOC XXX
Trust). These trust certificates are rated by Moody's.
This transaction constitutes a multi-borrower CMBS backed by six
Bonds that were respectively issued by different TMKs. The trust
vehicle is designed to use interest and principal collections from
the Bonds separately to pay dividend/principal on the rated Trust
Certificates.
Four of the bonds have been paid down in full, and the transaction
is currently secured by two bonds. One of the two is a
liquidating bond backed by office buildings; the other (non-
liquidating) bond is backed by hotels.
According to the Asset Disposition Report dated December 27, 2010,
for the bond backed by hotels, the individual target sales prices
were changed and the backing properties are scheduled to be sold
at substantially lower prices than the previous targets.
Rating Rationale
The recovery of a bond backed by hotels and under special
servicing may well be lower than Moody's assumptions in June 2010
(the last rating action on these trust certificates), as the
individual target sales prices were changed and the backing
properties are scheduled to be sold at substantially lower prices
than the previous targets.
Moody's has thus re-assessed and lowered by 43% (from its initial
estimates) its recovery assumptions.
In this rating action, Moody's has not changed the recovery of a
TMK bond backed by office properties. A part of Class A Trust
Certificate -- which was corresponded to TMK bond backed by office
properties -- was redeemed because of the disposal of many backing
properties.
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.
=========
K O R E A
=========
GENERAL MOTORS: Korean Unit Officially Launches Chevrolet Brand
---------------------------------------------------------------
Yonhap News reports that GM Korea Co., the South Korean unit of
General Motors Co., will officially launch the Chevrolet brand in
South Korea this week, saying goodbye to Daewoo, a name that has
endured in South Korea for the past 28 years.
Yonhap relates that GM Korea said the name of the company will
officially be changed to GM Korea from GM Daewoo also as of
March 1, 2011.
About General Motors
With its global headquarters in Detroit, Michigan, General Motors
Company -- http://www.gm.com/-- is one of the world's largest
automakers. GM employs 205,000 people in every major region of
the world and does business in some 157 countries. GM and its
strategic partners produce cars and trucks in 31 countries, and
sell and service these vehicles through the following brands:
Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang,
Opel, Vauxhall and Wuling. GM's largest national market is China,
followed by the United States, Brazil, Germany, the United
Kingdom, Canada, and Italy. GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.
General Motors Co. is 60.8% owned by the U.S. Government. It was
formed to acquire the operations of General Motors Corporation
through a sale under 11 U.S.C. Sec. 363 following Old GM's
bankruptcy filing. The deal was closed on July 10, 2009, and Old
GM changed its name to Motors Liquidation Co. Old GM remains
subject to a pending Chapter 11 reorganization case before the
U.S. Bankruptcy Court for the Southern District of New York.
At September 30, 2010, GM had US$137.238 billion in total assets,
US$106.522 billion in total liabilities, US$6.998 billion in
preferred stock, $971 million in non-controlling interest, and
US$23.718 billion in total equity.
New GM has a 'BB-' corporate credit rating from Standard & Poor's
and a 'BB-' issuer default rating from Fitch.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). The Honorable Robert E. Gerber presides over the
Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq.,
and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP,
assist the Debtors in their restructuring efforts. Al Koch at AP
Services, LLC, an affiliate of AlixPartners, LLP, serves as the
Chief Executive Officer for Motors Liquidation Company. GM is
also represented by Jenner & Block LLP and Honigman Miller
Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is
providing legal advice to the GM Board of Directors. GM's
financial advisors are Morgan Stanley, Evercore Partners and the
Blackstone Group LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Creditors and a separate Official Committee of Unsecured Creditors
Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis
& Frankel LLP serve as bankruptcy counsel to the Creditors
Committee. Attorneys at Butzel Long serve as counsel regarding
supplier contract matters. FTI Consulting, Inc., serves as
financial advisors to the Creditors Committee. Elihu Inselbuch,
Esq., at Caplin & Drysdale, Chartered, represents the Asbestos
Committee. Legal Analysis Systems, Inc., serves as asbestos
valuation analyst.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
KOREA LINE: Seeks Bankruptcy Protection in the U.S.
---------------------------------------------------
Korea Line Corp. filed for Chapter 15 bankruptcy protection
(Bankr. S.D.N.Y. Case No. 11-10789) in the U.S. to bar creditors
from seizing its shipping vessels and bunkers at U.S. ports.
Receivers Jin Bang Lee and Byung Nam Choi estimated that the
Debtor has US$100 million to US$500 million in debts and assets as
of the Chapter 15 filing date in Manhattan.
Korea Line is undergoing rehabilitation before the Seoul Central
District Bankruptcy Court (4th Division), Case No. 2011 Hoe-Hap
14, pursuant to the Korean Debtor Rehabilitation and Bankruptcy
Act.
James H. Power, Esq., U.S. counsel for the receivers, said the
Chapter 15 filing was necessary as other KLC creditors are
preparing to attach KLC assets that may now or in the future be
located in the United States. He said that the procedures and
frequent use of maritime arrest and attachment favor pre-judgment
creditors seeking security for their claims. Most of the assets
of KLC are vessels owned or chartered by KLC. These assets are
engaged in global trade thereby potentially subjecting these KLC
assets to port calls at U.S.-based ports.
The receivers ask the U.S. Bankruptcy Court to immediately stay
remaining actions in which KLC is a defendant. KLC is a defendant
to U.S. lawsuits filed by World Fuel Services (Singapore) Pte
Ltd., Asian Friendship Shipping Ltd., Odin Pacific Maritime Ltd.,
and Clipper Bulk Shipping.
Korea's second-largest operator of dry-bulk ships, already in
receivership in a Seoul court, expects to have a shortfall of
$35.9 million in March, and will be unable to cover expenses,
according to the filing.
The U.S. filing is necessary to stop creditors from seizing assets
that would prevent the company from continuing to trade, including
its vessels, according to Mr. Power, U.S. counsel for receivers of
the Korea-based bankruptcy. "Furthermore, it is difficult for a
company undergoing debt reorganization such as KLC to post a bond
to secure the release of its property," Mr. Power said.
Under Chapter 15 of the U.S. Bankruptcy Code, foreign companies
can block U.S. lawsuits and organize U.S. creditors to help a main
reorganization in a foreign court.
Receiver Jin Bang Lee said that due to the global economic
recession caused by the global financial crisis of 2008, the
Baltic Dry Index steeply dropped from 11,793 as of May 2008 to
1,400 as of January 2011, which in turn caused KLC's operating
expenses such as fuel costs, port charges, etc., to exceed its
operating income, causing the business index to deteriorate
significantly. In addition, many customers who had chartered
ships from KLC on a long-term basis did not pay the charter hires
or returned the chartered ships early, causing a substantial
increase in delinquent claims.
KLC's liquid assets as of January 2011 totaled US$60,655,000,
while the funds necessary for repayment of debts and operating
expenses in February 2011 is US$186,964,000 and in March 2011,
US$170,163,000. KLC's operating income will not be sufficient to
cover these amounts, with an expected shortfall of US$35,932,000
in March of 2011.
KLC applied for rehabilitation in Korea under the DBRA on Jan. 26,
2011. The Korean court issued a stay order prohibiting attachment
and execution of KLC's property on Jan. 26, 2011. Rehabilitation
proceedings commenced Feb. 15, 2011, with the appointment of the
receivers.
KLC joins time-chartered operators Britannia Bulk PLC, Armada
(Singapore) Pte Ltd. and Transfield ER Cape, which also commenced
insolvency proceedings, according to court filings.
Mr. Power can be reached at:
James H. Power
HOLLAND & KNIGHT, LLP
31 West 52nd Street
New York, NY 10019
Tel: (212) 513-3200
Fax: (212) 385-9010
E-mail: james.power@hklaw.com
About Korea Line Corp.
Korea Line Corp. has been engaged in marine transport and port
logistics businesses since 1968. Its head office is in Seoul
Korea and its representative offices are in Shanghai and
Singapore. KLC is a publicly listed company on the Korean Stock
Exchange. Its operations are centered in Korea and the vas
majority of its assets, shareholders and employees are located in
Korea.
KOREA LINE: Chapter 15 Case Summary
-----------------------------------
Chapter 15 Petitioner: Jin Bang Lee
Chapter 15 Debtor: Korea Line Corporation
135-878 KLC Building
145-9 Samsun-dong, Gangam-gu
Seoul -South Korea
Chapter 15 Case No.: 11-10789
Type of Business: The Debtor is a company based in Korea that
provides marine transportation of freight and
cargo as well as real estate sales and leasing
services.
Chapter 15 Petition Date: February 25, 2011
Court: U.S. Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Robert E. Gerber
Petitioner's
Counsel: James H. Power, Esq.
HOLLAND & KNIGHT, LLP
31 West 52nd Street
New York, NY 10019
Tel: (212) 513-3200
Fax: (212) 385-9010
E-mail: james.power@hklaw.com
Estimated Assets: $100,000,001 to $500,000,000
Estimated Debts: $100,000,001 to $500,000,000
====================
N E W Z E A L A N D
====================
EX CED FOODS: Seeks Bankruptcy Protection in the U.S.
-----------------------------------------------------
Ex Ced Foods and an affiliate filed Chapter 15 petitions (Bankr.
N.D. Calif. Lead Case No. 11-30703) in San Francisco, California
on Feb. 25, 2011.
Louis J Cisz III John Sheahan and Ian Russell Lock, the
liquidators, signed the Chapter 15 petitions. The liquidators
were appointed pursuant to Section 241(2)(b) of the Companies Act
1993, an act of the Parliament of New Zealand.
The liquidators ask the U.S. Court to enter an order recognizing
the New Zealand Proceeding as a "foreign main proceeding" under
Chapter 15.
Exced Foods, formerly registered as "Tomco", was a food processor.
The Debtors' sole shareholder is SK Foods International, a New
Zealand company.
The Australian and New Zealand Banking Group Ltd. has a debenture
dated Feb. 24, 2000, and a General Security Agreement dated
Nov. 1, 2005, against the Debtor's assets. The loans made to the
Debtor by ANZ Bank were part of a larger lending relationship
between ANZ Bank (in New Zealand under the name ANZ National Ltd)
and all entities in the Cedenco group of companies in Australia
and New Zealand, including the Cedenco Foods JV Australia Pty
Ltd., SK Foods Australia Pty Ltd, SS Farms Australia Pty Ltd. and
the two New Zealand companies, Ex Ced Foods, formerly Cedenco
Foods Ltd.
On Nov. 9, 2009, Cedenco Foods and Cedenco Ohakune were placed
into receivership by ANZ Bank under New Zealand law. On Nov. 9,
2009, Cedenco Australia, SK Foods Australia, and SS Farms
Australia were also placed into receivership under Australian law.
According to Mr. Sheahan, in the United States, there have been
difficulties involving the Cedenco Group's U.S. affiliates. SK
Foods LP, a U.S. affiliate of the Cedenco Group, is the subject of
Chapter 11 proceeding, and that there are criminal proceedings
against one of the principals of SK Foods LP, Scott Salyer,
pending, respectively, in U.S. Bankruptcy and District Courts of
the Eastern District of California.
Julian Long, Esq., attorney and a partner in the law firm
LeeSalmonLong, was admitted as a barrister and solicitor of the
High Court of New Zealand.
The attorneys for the liquidators in the Chapter 15 cases are:
Robert N. H. Christmas, Esq.
Kate Hardy, Esq.
Christopher M. Desiderio, Esq.
NIXON PEABODY LLP
437 Madison Avenue, 18th Floor
New York, New York 10022
Telephone: (212) 940-3000
Facsimile: (212) 940-3111
E-mail: rchristmas@nixonpeabody.com
khardy@nixonpeabody.com
cdesiderio@nixonpeabody.com
- and -
Louis J. Cisz, III, Esq.
NIXON PEABODY LLP
One Embarcadero Center, 18th Floor
San Francisco, California 94111-3600
Telephone: (415) 984-8200
Facsimile: (415) 984-8300
E-mail: lcisz@nixonpeabody.com
EX CED FOODS: Chapter 15 Case Summary
-------------------------------------
Chapter 15 Petitioner: John Sheahan
Chapter 15 Debtor: Ex Ced Foods
fka Cedenco Foods
C/- KordaMentha, Level 16
45 Queen Street
Auckland
New Zealand
Chapter 15 Case No.: 11-30703
Type of Business: The debtor is a leading food company based in
New Zealand supplying agricultural food products
to domestic and international customers.
Chapter 15 Petition Date: February 25, 2011
Court: U.S. Bankruptcy Court
Northern District of California (San Francisco)
Debtor's Counsel: Louis J. Cisz, III, Esq.
NIXON PEABODY LLP
One Embarcadero Center, 18th Floor
San Francisco, CA 94111-3600
Tel: (415)984-8320
Fax: (866)246-2754
E-mail: lcisz@nixonpeabody.com
Estimated Assets: Not Stated
Estimated Debts: Not Stated
Debtor-affiliate filing separate Chapter 15 petition:
Entity Case No. Petition Date
------ -------- -------------
Cedenco Ohakune (Company No. 665068) 11-30704 02/25/11
(In Liquidation)
SOUTH CANTERBURY FINANCE: Receivership Gathers Speed
----------------------------------------------------
Anne Gibson at nzherald.co.nz reports that the receivership of
South Canterbury Finance is heating up as more assets are readied
for sale and the result of a fraud probe into Aorangi Securities
looms. The report relates that SCF's receivers have started
preparing the huge business and consumer loan book for sale, after
putting the NZ$200 million Face Finance on the market this month,
in an attempt to retrieve the taxpayers' NZ$1.6 billion paid to
SCF investors last year.
Statutory managers Grant Thornton are due to issue the sixth
update on Allan Hubbard's Aorangi Securities and Hubbard Managed
Funds, moving for the first time from monthly to three-monthly
reports, according to nzherald.co.nz.
Separately, the report notes, the Serious Fraud Office might
disclosed its next move on Aorangi, after information was received
from Hubbard's lawyers at Russell McVeagh. Nzherald.co.nz relates
that Kerryn Downey of SCF receivers McGrathNicol said due
diligence had started on the big business and consumer specialist
financier, in moves to cash up assets of the firm.
The loan book will hit the market with other huge SCF assets
including the country's biggest dairy farming operation NZ Dairy
Holdings, nzherald.co.nz notes.
Mr. Downey, nzherald.co.nz discloses, said the loan book would go
on the market in the next few months and although he was reluctant
to say how much money was involved, he did detail its size and
geographic reach. "In the case of Face there are about 85 files
but in this next part of the business there are hundreds. It's
right throughout New Zealand, predominantly in the South Island.
We have a lot of pre-sale preparation to do," nzherald.co.nz
quotes Mr. Downey as saying.
SCF declared that in 2009, it had loaned NZ$477.8 million "to a
vast range of businesses involved in manufacturing, professional
services, fishing, tourism, hospitality and importing/exporting
business," nzherald.co.nz recounts. But SCF loaned extensively to
Hubbard, the report relates. It's single largest loan, NZ$79.4
million, went to Mr. Hubbard's Southbury Group, nzherald.co.nz
discloses. Even worse, SCF extended extremely generous terms
which could make Mr. Downey's job harder, the report adds.
The last update, issued by Richard Simpson, Trevor Thornton and
Graeme McGlinn on Nov. 26, revealed that only one in five
borrowers is paying interest on their loans to Aorangi,
nzherald.co.nz says.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance.
On August 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under heightened
surveillance since 2008. As part of that, SCF was granted a
Trustee waiver in February 2010 to allow it time to recapitalize.
Unfortunately, the Company's Directors have advised us that they
have not been successful with respect to a recapitalization and
requested us to appoint a receiver. At this point we, as Trustee,
agree that it is the best interests of debenture, deposit and bond
holders to do that," said Yogesh Mody, Southern Regional Manager
for Trustees Executors Limited.
The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.
=====================
P H I L I P P I N E S
=====================
LEGACY GROUP: BSP Files New Charges Against Legacy Officials
------------------------------------------------------------
Daxim Lucas at the Philippine Daily Inquirer reports that the
government prosecutors have filed additional charges against
Legacy Group officials for the defunct group's illegal activities
in Cebu.
According to the Inquirer, state prosecutors of Danao City, Cebu,
found probable cause to charge Legacy officials, led by its owner,
Celso de los Angeles Jr., with syndicated estafa committed by
Rural Bank of Carmen, the group's unit in the province.
The Inquirer notes that the alleged fraudulent activities
succeeded in depriving the bank's clients of as much as
PHP435 million through schemes that were illegal or disallowed by
regulators.
Charged by the government were Mr. De los Angeles, Alexis
Petralba, Namnama Pasetes-Santos, Roy Hilario, Virgilio Odejar,
Ronaldo Alix, Christine Cruz-Limpin, Mike Basangan, Fernando
Rafanan Jr., Cecil Invencion and Reynaldo Manit, according to the
Inquirer.
"Of these 11 officers, six are already fugitives from justice,
having evaded arrests in connection with warrants issued by other
courts where other syndicated estafa cases are pending against
them," the Inquirer quotes BSP external counsel Elmar Galacio, of
the Villaraza Cruz Marcelo & Angangco law office, as saying.
He named the six as Petralba, Odejar, Pasetes-Santos, Hilario,
Cruz-Limpin and Rafanan, the Inquirer adds.
The Inquirer relates that government prosecutors said that from
March 2006 to December 2008, the accused conspired to lure
depositors and investors to place their funds in so-called "double
your money" schemes of the Legacy Group-controlled Rural Bank of
Carmen.
About Legacy Group
Headquartered in Quezon City, Philippines, The Legacy Group --
http://www.legacy.com.ph/-- was a conglomerate of banks and pre-
need companies. The banks offered various financial products and
the pre-need firms offered pension, education and memorial plans.
Other members of The Group provided credit cards, micro-lending
and automotive financing services.
* * *
The Bangko Sentral ng Pilipinas in 2008 placed 13 Legacy-member
rural banks under the receivership of the Philippine Deposit
Insurance Corporation due to insolvency. The banks under
receivership are Rural Bank of Paranaque; Rural Bank of San Jose
(in Batangas); Pilipino Rural Bank (in Cebu); Rural Bank of Bais
(in Negros Oriental province); Bank of East Asia (in Cebu); First
Interstate Bank (Rural Bank of Kananga, Leyte), Inc.; Philippine
Countryside Bank (in Cebu); Dynamic Bank (Rural Bank of Calatagan,
in Batangas); San Pablo City Development Bank; Nation Bank (in
Bacolod City); Rural Bank of DARBCI (General Santos); Bicol
Development Bank (Legaspi City); and the Rural Bank of Carmen
(Cebu).
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 27, 2009, the Philippine Daily Inquirer said that the Legacy
Group allegedly amassed between PHP15 billion and PHP25 billion in
deposits over the last three years due to an aggressive marketing
scheme, which promised depositors 20% in annual returns. To
address risk concerns, the Inquirer stated, the cash deposits
were spread out through the Legacy chain of banks to keep each
deposit within the maximum limit of the PDIC.
LUDO & LUYM: Supreme Court Allows Receivership Case to Proceed
--------------------------------------------------------------
BusinessWorld Online reports that the Supreme Court has reversed
itself for the second time in the suit to dissolve LuDo & LuYm
Development Corp.
BusinessWorld says the high court in a Feb. 15 ruling reversed its
Aug. 4, 2009 decision dismissing the petition of David Lu which
called for the dissolution of LLDC and the nullification of
600,000 LLDC shares of stock issued by directors Paterno Lu Ym,
Sr. and children Paterno, Jr., Victor, John and Kelly to
themselves at below par value.
Minority shareholder David Lu also wants the court to place the
property holding company under receivership, the report says.
According to BusinessWorld, the full court reinstated an Aug. 26,
2008, decision ordering the Court of Appeals' Former 20th Division
based in Cebu to "resume the proceedings and resolve the remaining
issues with utmost dispatch."
BusinessWorld relates that the dispute started when David Lu,
nephew of Paterno, Sr., accused the family patriarch and his sons
of misappropriating company shares after they issued to themselves
600,000 unsubscribed and unissued shares for less than the actual
value in 1997. BusinessWorld, citing court records, notes that
the LLDC shares are valued at over PHP1 billion.
In 2000, BusinessWorld says, Mr. Lu filed a case against the
patriarch and his sons at the Cebu Regional Trial Court (RTC),
seeking the nullification of the stock issuance and for LLDC to be
placed under receivership and dissolution.
The court granted Mr. Lu's petition in 2004, citing the "brazen,
in-your-face, continuing and unrepentant fraud and plunder"
committed by the patriarch and his sons, according to
BusinessWorld. Paterno, Sr. and his sons appealed the lower
court's decision to the Cebu branch of the Court of Appeals.
In 2001, BusinessWorld relates, the appellate court ruled in favor
of Paterno, Sr. and his sons, junking Mr. Lu's complaint and
reversing the lower court's earlier decision. BusinessWorld says
Mr. Lu raised the issue to the Supreme Court, while Paterno, Sr.
and sons filed two counter-petitions which essentially sought the
lifting of the receivership order on the Cebu-based property
company.
The high tribunal later on decided to consolidate the three
petitions, BusinessWorld notes.
In its 2008 ruling, the high court's Third Division ruled in favor
of David Lu, remanding the case back to the appellate court for
resolution.
However, upon appeal of Paterno, Sr. and sons, the court reversed
its decision in 2009, citing a technicality in that Mr. Lu failed
to pay the correct docket fees when he filed the original case in
the RTC. The court turned down Mr. Lu's first motion for
reconsideration also in 2009, BusinessWorld notes.
However, in a rare move, the court accepted his second motion for
reconsideration and granted his request that it be heard by the
full court to "resolve all doubts on the validity of the
challenged resolutions as they appear to modify or reverse
doctrines or principles of law," BusinessWorld says. In reversing
its 2009 decision, the high court ruled that if there was an error
in the payment of docket fees, it should not be taken against
Mr. Lu.
The Supreme Court ruling said that there was also no evidence of
bad faith on the part of Mr. Lu, as alleged by Paterno, Sr. and
his sons, BusinessWorld adds.
LuDo & LuYm Development Corp. is a Cebu-based family corporation
holding real estate assets.
VICTORIAS MILLING: Elects Wilson Young as New Chairman
------------------------------------------------------
Victorias Milling Co., Inc. has elected Wilson T. Young as the
company's new chairman.
"Omar Byron T. Mier has resigned as chairman and member of the
board of directors of Victorias Milling effective end of business
hours on Feb. 25 for professional reasons," the firm said.
"Following the ensuing reorganization, Wilson T. Young has been
elected as the new chairman of the board and its executive
committee."
Michael G. Tan, one of the sons of airline, tobacco, alcohol, and
banking magnate Lucio C. Tan, was elected representative of
Philippine National Bank in the board. The younger Tan is the
chief operating officer of Asia Brewery, Inc. Victorias Milling
said Mr. Mier had served in various capacities for the company
since 1998. He will remain as consultant to the board. Mr.
Young, meanwhile, has been on the board since 2005.
About Victorias Milling
Headquartered in Victorias City, Negros Occidental, Victorias
Milling Company Inc. -- http://www.victoriasmilling.com/-- was
organized in 1919 and is engaged in the acquisition,
construction, maintenance and operation of sugar mills, as well
as other related business activities. Through the years, the
company has expanded its operations to include a foundry, a
machine shop, a fabrication shop, a food canning company, an
organic fertilizer plant and a piggery.
On July 4, 1997, the company filed an application with the
Securities and Exchange Commission to suspend payments to
creditors. On July 8, 1997, the SEC issued a stay order
restraining all Victorias Milling creditors or any of its
subsidiaries from enforcing their claims, to allow the company
or any of its subsidiaries to continue to their normal business
operations. The SEC also ordered the formation of a Management
Committee to oversee the company's operations and
rehabilitation.
=================
S I N G A P O R E
=================
AML PRODUCTS: Creditors' Proofs of Debt Due March 23
----------------------------------------------------
Creditors of AML Products Ltd, which is in members' voluntary
liquidation, are required to file their proofs of debt by
March 23, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Teh Kwang Hwee
c/o 1 Commonwealth Lane
#07-32 One Commonwealth
Singapore 149544
CPD OILWELL: Court to Hear Wind-Up Petition on March 11
-------------------------------------------------------
A petition to wind up the operations of CPD Oilwell International
Pte Ltd will be heard before the High Court of Singapore on
March 11, 2011, at 10:00 a.m.
Leong Jin Corporation Pte Ltd filed the petition against the
company on Feb. 12, 2011.
The Petitioner's solicitors are:
Messrs Wong Partnership LLP
63 Market Street #02-01
Singapore 048942
DIAMOND MARINE: Court to Hear Wind-Up Petition on March 11
----------------------------------------------------------
A petition to wind up the operations of Diamond Marine Services
Pte Ltd will be heard before the High Court of Singapore on
March 11, 2011, at 10:00 a.m.
Standard Chartered Bank filed the petition against the company on
Feb. 17, 2011.
The Petitioner's solicitors are:
Rajah & Tann LLP
9 Battery Road
#25-01 Straits Trading Building
Singapore 049910
DRAYCOTT PTE: Creditors' Proofs of Debt Due March 23
----------------------------------------------------
Creditors of Draycott Pte Ltd, which is in members' voluntary
liquidation, are required to file their proofs of debt by
March 23, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Teh Kwang Hwee
c/o 1 Commonwealth Lane
#07-32 One Commonwealth
Singapore 149544
DUNEARN PTE: Creditors' Proofs of Debt Due March 23
---------------------------------------------------
Creditors of Dunearn Pte Ltd, which is in members' voluntary
liquidation, are required to file their proofs of debt by
March 23, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Teh Kwang Hwee
c/o 1 Commonwealth Lane
#07-32 One Commonwealth
Singapore 149544
HOLZ-HER ASIA: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Singapore entered an order on Feb. 11, 2011, to
wind up Holz-Her Asia Pte Ltd's operations.
Reich Spezialmaschinen GmbH filed the petition against the
company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
URA Centre (East Wing)
45 Maxwell Road #05-11 #06-11
Singapore 069118
ORHIS PTE: Court to Hear Wind-Up Petition on March 18
-----------------------------------------------------
A petition to wind up the operations of Orhis Pte Ltd will be
heard before the High Court of Singapore on March 18, 2011, at
10:00 a.m.
United Overseas Bank Limited filed the petition against the
company on Feb. 18, 2011.
The Petitioner's solicitors are:
Khattarwong
No.80 Raffles Place
#25-01 UOB Plaza 1
Singapore 048624.
===============
X X X X X X X X
===============
* S&P's 2011 Global Corporate Default Tally Remains at Three
------------------------------------------------------------
The 2011 global corporate default tally remains at three after no
issuers defaulted last week, said an article published by Standard
& Poor's, titled "Global Corporate Default Update (Feb. 18 - 24,
2011) (Premium)."
Two of the defaults were based in the U.S., and one was based in
the Czech Republic. By comparison, 17 global corporate issuers had
defaulted by this time last year (14 U.S.-based issuers and one
each based in Australia, Bahrain, and Canada).
All three of this year's defaulters missed interest or principal
payments, which was one of the top reasons for default last year.
Of the defaults in 2010, 28 defaults resulted from missed interest
or principal payments, 25 resulted from Chapter 11 and foreign
bankruptcy filings, 23 from distressed exchanges, three from
receiverships, and one each from regulatory directives and
administration.
* BOND PRICING: For the Week February 21 to February 25, 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 2.01
AMP GROUP FINANC 9.80 04/01/2019 NZD 0.95
AUST & NZ BANK 2.00 04/15/2018 AUD 74.63
BECTON PROP GR 9.50 06/30/2010 AUD 0.20
CENTAUR MINING 11.00 12/01/2007 USD 0.50
ENVESTRA LTD 3.04 08/20/2005 AUD 74.97
EXPORT FIN & INS 0.50 12/16/2019 NZD 62.44
EXPORT FIN & INS 0.50 06/15/2020 AUD 60.44
EXPORT FIN & INS 0.50 06/15/2020 NZD 59.54
HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.90
NEW S WALES TREA 1.00 09/02/2019 AUD 64.21
NEW S WALES TREA 0.50 09/14/2022 AUD 52.37
NEW S WALES TREA 0.50 10/07/2022 AUD 52.17
NEW S WALES TREA 0.50 10/28/2022 AUD 51.98
NEW S WALES TREA 0.50 11/18/2022 AUD 51.05
NEW S WALES TREA 0.50 12/16/2022 AUD 51.80
NEW S WALES TREA 0.50 12/16/2023 AUD 51.09
NEXUS AUSTRALIA 3.60 08/31/2017 AUD 72.26
NEXUS AUSTRALIA 3.60 08/31/2019 AUD 65.11
RESOLUTE MINING 12.00 12/31/2012 AUD 1.30
TREAS CORP VICT 0.50 08/25/2022 AUD 53.20
TREAS CORP VICT 0.50 11/12/2030 AUD 53.67
TREAS CORP VICT 0.50 11/12/2030 AUD 35.53
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 64.21
HONG KONG
---------
RESPARCS FUNDING 8.00 12/29/2049 USD 39.52
INDIA
-----
POWER FIN CORP 8.99 01/15/2021 INR 9.20
PUNJAB INFRA DB 0.40 10/15/2024 INR 26.01
PUNJAB INFRA DB 0.40 10/15/2025 INR 21.65
PUNJAB INFRA DB 0.40 10/15/2026 INR 21.58
PUNJAB INFRA DB 0.40 10/15/2027 INR 19.74
PUNJAB INFRA DB 0.40 10/15/2028 INR 18.09
PUNJAB INFRA DB 0.40 10/15/2029 INR 16.61
PUNJAB INFRA DB 0.40 10/15/2030 INR 15.28
PUNJAB INFRA DB 0.40 10/15/2031 INR 14.09
PUNJAB INFRA DB 0.40 10/15/2032 INR 13.01
PUNJAB INFRA DB 0.40 10/15/2033 INR 12.05
JAPAN
-----
AIFUL CORP 1.20 01/26/2012 USD 74.72
AIFUL CORP 1.99 03/23/2012 JPY 71.93
AIFUL CORP 1.22 04/20/2012 JPY 68.27
AIFUL CORP 1.74 05/28/2013 JPY 47.92
AIFUL CORP 1.99 10/19/2015 JPY 37.94
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 59.72
JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 59.18
SHINSEI BANK 5.62 12/29/2049 GBP 73.62
TAKEFUJI CORP 9.20 04/15/2011 USD 17.00
TAKEFUJI CORP 4.00 06/05/2022 USD 10.09
MALAYSIA
--------
ADVANCED SYNERY 2.00 01/26/2018 MYR 0.15
ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.55
CRESENDO CORP B 3.75 01/11/2016 MYR 1.28
DUTALAND BHD 6.00 04/11/2013 MYR 0.49
DUTALAND BHD 6.00 04/11/2013 MYR 0.76
EASTERN & ORIENT 8.00 07/25/2011 MYR 1.07
EASTERN & ORIENT 8.00 11/16/2019 MYR 1.25
KUMPULAN JETSON 5.00 11/27/2012 MYR 0.81
LION DIVERSIFIED 4.00 12/17/2013 MYR 0.60
MITHRIL BHD 3.00 04/05/2012 MYR 0.62
NAM FATT CORP 2.00 06/24/2011 MYR 0.06
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.53
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.31
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.35
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 0.75
SCOMI ENGINEERING 4.00 03/19/2013 MYR 0.75
SCOMI GROUP 4.00 12/14/2012 MYR 0.85
TATT GIAP 2.00 06/03/2015 MYR 0.70
TRADEWINDS PLANT 3.00 02/28/2016 MYR 0.85
TRC SYNERGY 5.00 01/20/2012 MYR 1.42
WAH SEONG CORP 3.00 05/21/2012 MYR 2.31
WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.25
YTL CEMENT BHD 5.00 11/10/2015 MYR 2.36
NEW ZEALAND
-----------
ALLIED FARMERS 9.60 11/15/2011 NZD 45.33
DORCHESTER PACIF 5.00 06/30/2013 NZD 69.60
FLETCHER BUI 8.50 03/15/2015 NZD 7.59
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 61.01
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 5.94
ST LAURENCE PROP 9.25 07/15/2010 NZD 63.75
TOWER CAPITAL 8.50 04/15/2014 NZD 1.03
TRUSTPOWER LTD 8.50 09/15/2012 NZD 6.75
TRUSTPOWER LTD 8.50 03/15/2014 NZD 8.25
TRUSTPOWER LTD 7.60 12/15/2014 NZD 1.01
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 7.00
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
EQUINOX OFFSHORE 20.00 10/13/2011 USD 71.00
UNITED ENG LTD 1.00 03/03/2014 SGD 1.60
WBL CORPORATION 2.50 06/10/2014 SGD 1.60
SOUTH KOREA
-----------
BUSAN 2 MUTUAL 8.50 09/06/2014 KRW 71.52
BUSAN 2 MUTUAL 8.50 09/25/2014 KRW 70.68
CN 1ST ABS 8.00 02/27/2015 KRW 31.52
DAEWOO MTR SALES 6.55 03/17/2011 KRW 69.08
DONGSAN DEVELOPM 3.50 05/08/2011 KRW 13.05
GYEONGGI MUTUAL 8.50 08/29/2014 KRW 8.23
GYEONGGI MUTUAL 8.50 12/11/2014 KRW 10.32
HOPE KOD 1ST 8.50 06/30/2012 KRW 23.00
HOPE KOD 2ND 15.00 08/21/2012 KRW 30.39
HOPE KOD 3RD 15.00 09/30/2012 KRW 30.29
HOPE KOD 4TH 15.00 12/29/2012 KRW 25.00
HOPE KOD 6TH 15.00 03/10/2013 KRW 33.81
HYUNDAI SWISS BK 8.30 06/20/2011 KRW 28.31
HYUNDAI SWISS BK 8.20 01/26/2012 KRW 10.85
HYUNDAI SWISS BK 8.20 10/26/2012 KRW 10.66
HYUNDAI SWISS BK 8.20 01/13/2015 KRW 10.21
HYUNDAI SWISS S 8.30 01/13/2015 KRW 10.12
HYUNDAI SWISS S 7.90 07/23/2015 KRW 11.61
IBK 12TH ABS 25.00 06/24/2011 KRW 66.77
IBK 16TH ABS 25.00 09/24/2012 KRW 63.81
IBK 17TH ABS 25.00 12/29/2012 KRW 60.32
JINHEUNG SAVINGS 8.50 10/17/2014 KRW 10.11
JOONG ANG DESIGN 6.00 12/18/2012 KRW 65.35
KB 11TH ABS 23.00 07/03/2011 KRW 64.79
KB 11TH ABS 23.00 07/03/2011 KRW 67.60
KB 12TH ABS 25.00 01/21/2012 KRW 65.64
KB 13TH ABS 25.00 07/02/2012 KRW 62.55
KDB 5TH ABS SEC SPC0 15.00 12/13/2012 KRW 65.07
KDB 6TH ABS 20.00 12/02/2019 KRW 53.83
KEB 17TH ABS 20.00 12/28/2011 KRW 59.91
KOREA LINE CO 6.80 11/30/2011 KRW 62.58
KOREA LINE CO 8.30 12/11/2011 KRW 57.71
KOREA SAVINGS BA 8.10 06/26/2015 KRW 10.08
NACF 15TH ABS S 25.00 03/18/2011 KRW 63.34
ONE KDB 1ST ABS 7.60 06/13/2011 KRW 33.61
OSAN MYTOWN 1ST 5.64 04/16/2012 KRW 62.83
OSAN MYTOWN 2ND 5.64 04/16/2012 KRW 62.60
SAM HO INTL 6.32 03/28/2011 KRW 71.06
SINBO 1ST ABS 15.00 07/22/2013 KRW 30.70
SINBO 2ND ABS 15.00 08/26/2013 KRW 33.43
SINBO 3RD ABS 15.00 09/30/2013 KRW 33.41
SINBO 4TH ABS 15.00 12/16/2013 KRW 31.25
SINBO 5TH ABS 15.00 02/23/2014 KRW 30.45
SINBO CO 1ST ABS 15.00 03/15/2014 KRW 30.16
SINGOK ABS 7.50 06/18/2011 KRW 52.34
SINGOK NS ABS 7.50 06/27/2011 KRW 52.44
SRI LANKA
---------
SRI LANKA GOVT 5.35 03/01/2026 LKR 66.67
THAILAND
--------
THAILAND GOVT 0.75 01/04/2022 THB 70.67
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 ***