/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/110309.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 Wednesday, March 9, 2011, Vol. 14, No. 48 Headlines A U S T R A L I A 20*20: Unsecured Creditors to Recoup Less, Administrator Warns GADFLY MEDIA: Goes Into Administration Due to Drop in Advertising * AUSTRALIA: External Administration Down 40% in January 2011 C H I N A SHIMAO PROPERTY: Moody's Assigns 'B1' Rating to Senior Bonds H O N G K O N G AIMBEST INVESTMENT: Members' Final Meeting Set for April 11 ASTROS PRINTING: Creditors' Proofs of Debt Due April 12 CEUTA LIMITED: Members' Final Meeting Set for April 11 CHESTWORLD LIMITED: Members' Final Meeting Set for April 11 CUHK GLOBAL: Tsang Wai Kit Steps Down as Liquidator FINESTYLE MARITIME: Annual Meetings Set for April 6 GALLANT MARK: Members' Final Meeting Set for April 8 HARBOUR LEADER: Members' Final Meeting Set for April 8 HAU LI: Creditors and Members' Final Meetings Set for April 28 KINCHEER LIMITED: Members' Final Meeting Set for April 11 LAGERSON LIMITED: Members' Final Meeting Set for April 11 LIBERWAY LIMITED: Creditors' Meetings Set for March 18 PCI EXPRESS: Tjon Yose Manuel Sie Fo Appointed as Liquidator SHELL TREASURY: Members' Final Meeting Set for April 6 STARVIEW LIMITED: Creditors' Proofs of Debt Due April 5 TAK LEE: Members and Creditors' Final Meetings Set for April 4 VINKI CORPORATION: Tang and Chen Appointed as Liquidators VISION TECHNOLOGY: Final Meetings Set for April 1 I N D I A ACG HOSPITALITY: CRISIL Downgrades Rating on INR200MM Loan to 'D' ALLIANCE PETROLEUMS: CRISIL Reaffirms 'B' Cash Credit Rating CANARA BANK: Moody's Assigns (P)Baa2 Rating to Sr. Unsecured Notes COLOURFLEX LAMINATORS: CRISIL Reaffirms 'BB' Rating on Term Loan COMET TECHNOCOM: CRISIL Assigns 'BB-' Rating to INR65MM Overdraft DIGAMBER CAPFIN: CRISIL Reaffirms 'B+' Rating on INR15MM Loan GOENKA SHIKSHA: CRISIL Reaffirms 'D' Rating on INR66.9MM Term Loan GNG EXPORTS: CRISIL Assigns 'P4+' Rating on INR50 Million LOC JANKI DASS: CRISIL Assigns 'B-' Rating to INR70MM Cash Credit KARAN KOTHARI: Fitch Assigns National Long-Term Rating at 'B+' KUMAR ASHIS: CRISIL Assigns 'B-' Rating on INR45MM Term Loan MAHESH KUMAR: CRISIL Assigns 'LB+' Rating to INR4.13cr Term Loan NICKUNJ EDM: Fitch Affirms National Long-Term Rating at 'B+' NICKUNJ EXIMP: Fitch Affirms National Long-Term Rating at 'B+' OM KAILASH: ICRA Assigns 'LB+' Rating to INR8cr Cash Credit ORIENT STEEL: ICRA Assigns 'LBB+' Rating to INR19.25cr Limits PRASANNA POWER: CRISIL Upgrades Rating on INR235MM LT Loan to 'B+' RUKMANI POWER: CRISIL Upgrades Rating on INR225.8MM Loan to 'BB+' SALVI CHEMICAL: CRISIL Cuts Rating on Cash Credit to 'BB' SAINOR LIFE: ICRA Assigns 'LB' Rating to INR15cr FB Limits SRINIVASA SOYA: CRISIL Cuts Rating on INR125MM LT Loan to 'B-' TECHNOCON SERVICES: CRISIL Assigns 'BB+' Rating to Cash Credit TRV GLOBAL: CRISIL Reaffirms 'P4' Rating on INR80MM Packing Credit UNIJULES LIFE: CRISIL Reaffirms 'BB+' Rating on Cash Credit YASH AUTOMOTIVE: CRISIL Rates INR200 Million Cash Credit at 'BB-' J A P A N EAST STREET: Moody's Downgrades Ratings on Various Notes GODO KAISHA: Moody's Downgrades Ratings on Various Notes K O R E A KUMHO ASIANA: Korea Express Share Sale Attracts Three Bidders M A L A Y S I A BANENG HOLDINGS: Reports MYR42.13 Million Net Loss for 2010 VASTALUX ENERGY: Posts MYR228,208 Net Loss in December 31 Quarter VTI VINTAGE: Posts MYR5.4 Million Net Loss in December 31 Quarter N E W Z E A L A N D AORANGI SECURITIES: HMF Investors to Face 'Considerable Loss' CENTURY CITY: Owner Has "Back-Stop" Plan to Repay NZ$4-Mil. Debt S I N G A P O R E AMBASSADOR TOURS: Creditors' Proofs of Debt Due March 18 DIAGONAL CONSULTING: Creditors' Proofs of Debt Due April 4 DG2L TECHNOLOGIES: Court Enters Wind-Up Order DYNA-OKE CONSTRUCTION: Creditors' Proofs of Debt Due March 18 FOUNDATION ASIANA: Creditors' Proofs of Debt Due March 19 HENG DA: Court Enters Wind-Up Order LB QUEENSLAND: Creditors' Proofs of Debt Due April 4 SINO-ENVIRONMENT CLEAN: Court to Hear Wind-Up Petition on March 18 SIN TYE: Creditors' Proofs of Debt Due March 18 X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= 20*20: Unsecured Creditors to Recoup Less, Administrator Warns -------------------------------------------------------------- Sean Cowan at The West Australian reports that the administrator of failed building company 20*20 has warned unsecured creditors that most would recover little from the company. According to The West Australian, BRI Ferrier's John Carrello wrote to creditors last week to outline a litany of errors made by 20*20, including allegations it traded while insolvent and was run by a businessman barred from running companies. The West Australian relates that Mr. Carrello said in his report that a deed of company arrangement would likely be the best option for creditors, otherwise liquidation was the only option. But Mr. Carrello said the liquidation of 20*20, which lost its building license after taking deposits for homes without taking out insurance to cover homebuyers, would take years and rely on litigation against several potential targets, The West Australian reports. The West Australian notes that Mr. Carrello also said 20*20's main asset was a contract it held with the family company of mining magnate Andrew Forrest to develop a AU$37 million residential project at Port Hedland. According to The West Australian, 20*20 was the preferred developer and Mr. Carrello said its contract provided that it would be paid AU$1.7 million if another builder was contracted to develop the site. It was advised last year that another company had been chosen, says The West Australian. "I believe it is likely that the company was insolvent from December 2008 to January 2009," The West Australian quotes Mr. Carello as saying. "Should it be proved that the company traded while insolvent, there is potentially a claim against the director of the company." The West Australian adds that Mr. Carrello also said 20*20 business development manager Richard Trainer, who is barred as a director of any company because he is a bankrupt, had been acting as a de facto director of 20*20. 20*20 is a North West, Australia-based homebuilder. The company collapsed in 2010 owing about AU$6 million. GADFLY MEDIA: Goes Into Administration Due to Drop in Advertising ----------------------------------------------------------------- SmartCompany reports that Gadfly Media, which is run by sole director David Hickie, was placed in the hands of administrator Ian Purchas of RMG partners on February 25. Mr. Purchas said he is confident that the company can be turned around, despite the fact the group is carrying debts incurred during the global financial crisis, according to the report. Mr. Purchas told SmartCompany in an interview that while the business has been trading well in recent months, and remains open for business as this stage, the administration was caused by a sharp drop in advertising during the global financial crisis, particularly in the luxury and travel sectors. SmartCompany notes that Mr. Purchas has advertised the business for sale. The group's annual turnover is between $3.9 and $4.2 million and it has about 25 staff, according to the report. While Mr. Purchas said there has been some interest from parties who are keen to look at the business, it is more likely that a deed of company arrangement from the director will help Gadfly out of administration, SmartCompany adds. SmartCompany discloses that Mr. Purchas is calling for expressions of interest in the business by March 16. A second meeting of creditors will be held before April 1. Gadfly Media is a custom publishing house. It publishes a range of high-end magazines including Luxury Travel, Australian Art Collector and Breeding & Racing. * AUSTRALIA: External Administration Down 40% in January 2011 ------------------------------------------------------------- Michelle Hammond at StartupSmart, citing latest insolvency figures from the Australian Securities and Investments Commission, reports that 455 companies in Australia were put into external administration in January, down 40% from December, but experts still predict a bumpy road ahead. StartupSmart relates that PPB Advisory partner Mark Robinson said the decline reflects the fact that most businesses were on holiday in January and is fairly typical for that month. However, StartupSmart says, financial advisory firms are expecting to see a spike due to the recent natural disasters over the next three to six months, particularly in Queensland and Victoria. In December, StartupSmart recalls, Insolvency and Trustee Service Australia statistics ranked Queensland as the most likely state to go bankrupt. According to StartupSmart, Mr. Robinson said the retail and property sectors have been the hardest hit, and high levels of appointments will continue in those sectors as well as for small businesses. StartupSmart notes that a recent Dun & Bradstreet report reveals 10,000 firms ceased trading in 2010 compared to just over 8,000 in 2009. Businesses with between one and five employees experienced a 46% increase in failures in 2010 while those with between six and 19 members of staff suffered a 20% increase in closures, StartupSmart says. StartupSmart relates that Dun & Bradstreet chief executive Christine Christian said she expects a similar rate of business failures this year. StartupSmart quotes Ms. Christian as saying that, "The next couple of years will be shaky. Unless banks become more responsive for small businesses by loosening credit terms, we'll see similar rates of delinquency and decline this year." Turnaround specialist Michael Fingland of Vantage Performance says SMEs will make up the bulk of insolvency figures in 2011, although it won't become evident until around April, StartupSmart reports. ========= C H I N A ========= SHIMAO PROPERTY: Moody's Assigns 'B1' Rating to Senior Bonds ------------------------------------------------------------ Moody's Investors Service has assigned a B1 rating to Shimao Property Holdings Limited's US$350 million 7-year senior unsecured bonds. At the same time, Moody's has affirmed Shimao's Ba3 corporate family rating. The outlook for both ratings is stable. The proceeds from the US dollar bonds will be used to refinance the existing US$250 million notes due December 2011, and for land acquisitions and general corporate purposes. Ratings Rationale "The majority of the bond proceeds will be used to refinance existing debt; hence the bonds have no material impact on the company's financial leverage," says Peter Choy, a Moody's Senior Vice President. "Moreover, the bonds will improve the company's debt maturity profile slightly." "Although Shimao's liquidity -- estimated at RMB 13 billion cash on hand as of December 2010 - appears adequate, the company's aggressive land acquisitions in 2010 -- 14 lots for RMB 20 billion -- pose an additional burden to its cash flow," says Choy, adding that, "its 2010 payment obligations for land were well over RMB 10 billion and will likely remain high in 2011 and 2012." "Shimao has funded some of the land acquisitions with debt which has resulted in a deterioration of its debt leverage - exceeding 50% as measured by debt/total capitalization - that positions the company at the lower end of its Ba3 rating" says Choy. "If Shimao continues with this acquisitive strategy while it fails to meet its sales targets, or if it does not lower its debt leverage, its ratings could be under pressure," Choy goes on to say. Shimao's Ba3 corporate family rating reflects the company's large- scale development, its diversified and well-located land bank, and its portfolio of quality investment properties. The rating is tempered by Shimao's aggressive land acquisitions, which could pressure its financial profile, especially in light of the cyclicality in China's property market. Shimao's bond rating is notched down to B1 due to subordination risk. Secured and subsidiary debt to total assets was around 25% as of 30 June 2010. This ratio will stay above 15-20% over the next 2 to 3 years. The outlook is stable, reflecting Shimao's currently adequate liquidity to fund the development of already designated projects over the next 12 months. Near term upward rating pressure is limited given Shimao's relative high debt leverage and the upcoming large land premium payments. The ratings could be downgraded if Shimao (1) continues to fall short materially of its sales against its budget; (2) sees its balance sheet liquidity weakened; or (c) pursues additional aggressive debt-funded land acquisitions or joint venture property projects, such that operating cash flow weakens and interest coverage deteriorates, with EBITDA/interest falling below 2.5x- 3.0x or debt/capitalization rising above 50%. The last rating action on Shimao was taken on July 27, 2010, when Moody's Investors Service assigned a senior unsecured rating of B1 to Shimao Property Holdings Limited's proposed senior unsecured Regulation S bonds. Shimao Property Holdings Ltd is a Grand Cayman-incorporated Chinese property developer that was listed on the Hong Kong Stock Exchange in July 2006. It has 34 projects in 22 cities in eastern and northeastern China. ================ H O N G K O N G ================ AIMBEST INVESTMENT: Members' Final Meeting Set for April 11 ----------------------------------------------------------- Members of Aimbest Investment Limited will hold their final general meeting on April 11, 2011, at 10:00 a.m., at 12th Floor, V Heun Building, 138 Queen's Road Central, in Hong Kong. At the meeting, Choy Man Yick, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ASTROS PRINTING: Creditors' Proofs of Debt Due April 12 ------------------------------------------------------- Creditors of Astros Printing Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by April 12, 2011, to be included in the company's dividend distribution. The company's liquidators are: Ho Mei Ngan Low Fung Ping Rooms 903-908, 9/F Kai Tak Commercial Building 317-319 Des Voeux Road Central, Hong Kong CEUTA LIMITED: Members' Final Meeting Set for April 11 ------------------------------------------------------ Members of Ceuta Limited will hold their final general meeting on April 11, 2011, at 10:30 a.m., at 12th Floor, V Heun Building, 138 Queen's Road Central, in Hong Kong. At the meeting, Choy Man Yick, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CHESTWORLD LIMITED: Members' Final Meeting Set for April 11 ----------------------------------------------------------- Members of Chestworld Limited will hold their final general meeting on April 11, 2011, at 10:30 a.m., at 12th Floor, V Heun Building, 138 Queen's Road Central, in Hong Kong. At the meeting, Choy Man Yick, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CUHK GLOBAL: Tsang Wai Kit Steps Down as Liquidator --------------------------------------------------- Tsang Wai Kit stepped down as liquidator of The CUHK Global Business Alumni Association Limited on Feb. 23, 2011. FINESTYLE MARITIME: Annual Meetings Set for April 6 --------------------------------------------------- Members and creditors of Finestyle Maritime Services Limited will hold their annual meetings on April 6, 2011, at 11:00 a.m., at 62/F., One Island East, 18 Westlands Road, Island East, in Hong Kong. At the meeting, Stephen Liu Yiu Keung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GALLANT MARK: Members' Final Meeting Set for April 8 ---------------------------------------------------- Members of Gallant Mark Development Limited, which is in members' voluntary liquidation, will hold their final meeting on April 8, 2011, at 10:30 a.m., at 76/F., Two International Finance Centre, 8 Finance Street, Central, in Hong Kong. At the meeting, Cheung Fong Ming, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HARBOUR LEADER: Members' Final Meeting Set for April 8 ------------------------------------------------------ Members of Harbour Leader Limited, which is in members' voluntary liquidation, will hold their final meeting on April 8, 2011, at 10:45 a.m., at 76/F., Two International Finance Centre, 8 Finance Street, Central, in Hong Kong. At the meeting, Lee King Yue, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HAU LI: Creditors and Members' Final Meetings Set for April 28 -------------------------------------------------------------- Creditors and members of Hau Li Loi Decoration & Design Eng. Limited will hold their final meetings on April 28, 2011, at 2:00 p.m., and 2:30 p.m., respectively, at Room 204, 2/F, Malaysia Building, 50 Gloucester Road, Wanchai, in Hong Kong. At the meeting, Chan Bing Chung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KINCHEER LIMITED: Members' Final Meeting Set for April 11 --------------------------------------------------------- Members of Kincheer Limited will hold their final general meeting on April 11, 2011, at 10:30 a.m., at 12th Floor, V Heun Building, 138 Queen's Road Central, in Hong Kong. At the meeting, Choy Man Yick, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. LAGERSON LIMITED: Members' Final Meeting Set for April 11 --------------------------------------------------------- Members of Lagerson Limited will hold their final general meeting on April 11, 2011, at 10:30 a.m., at 12th Floor, V Heun Building, 138 Queen's Road Central, in Hong Kong. At the meeting, Choy Man Yick, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. LIBERWAY LIMITED: Creditors' Meetings Set for March 18 ------------------------------------------------------ Creditors of Liberway Limited will hold their annual meetings on March 18, 2011, at 11:00 a.m., at 62/F., One Island East, 18 Westlands Road, Island East, in Hong Kong. PCI EXPRESS: Tjon Yose Manuel Sie Fo Appointed as Liquidator ------------------------------------------------------------ Tjon Yose Manuel Sie Fo on Feb. 22, 2011, was appointed as liquidator of PCI Express Padala (HK) Limited. The liquidator may be reached at: Tjon Yose Manuel Sie Fo Unit A, 10/F Hua Chiao Commercial Centre 678 Nathan Road Mongkok, Kowloon Hong Kong SHELL TREASURY: Members' Final Meeting Set for April 6 ------------------------------------------------------ Members of Shell Treasury Hong Kong Limited will hold their final general meeting on April 6, 2011, at 10:00 a.m., at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong. At the meeting, Ying Hing Chiu and Chan Mi Har, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. STARVIEW LIMITED: Creditors' Proofs of Debt Due April 5 ------------------------------------------------------- Creditors of Starview Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by April 5, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 25, 2011. The company's liquidators are: Chan Chi Bor Li Fat Chung Unit 402, 4/F Malaysia Building No. 50, Gloucester Road Wanchai, Hong Kong TAK LEE: Members and Creditors' Final Meetings Set for April 4 -------------------------------------------------------------- Members and creditors of Tak Lee Rubber & Metal Manufacturing Limited will hold their final meetings on April 4, 2011, at 4:00 p.m., and 4:30 p.m., respectively at Room 602, 3 Lockhart Road, Wanchai, in Hong Kong. At the meeting, Lui Wai Ho and To Chi Man, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. VINKI CORPORATION: Tang and Chen Appointed as Liquidators --------------------------------------------------------- Messrs. Alan C W Tang and Kenneth Y N Chen on Feb. 25, 2011, were appointed as liquidators of Vinki Corporation Limited. The liquidators may be reached at: Messrs Alan C W Tang Kenneth Y N Chen 43/F., The Lee Gardens 33 Hysan Avenue Causeway Bay, Hong Kong VISION TECHNOLOGY: Final Meetings Set for April 1 ------------------------------------------------- Members and creditors of Vision Technology Corporate Limited will hold their final meetings on April 1, 2011, at 5:00 p.m., and 5:30 p.m., respectively at 21/F, Skyline Commercial Centre, 71-77 Wing Lok Street, Sheung Wan, in Hong Kong. At the meeting, Fung Tat Man, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= ACG HOSPITALITY: CRISIL Downgrades Rating on INR200MM Loan to 'D' ----------------------------------------------------------------- CRISIL has downgraded its rating on ACG Hospitality Private Ltd's term loan facility to 'D' from 'B-/Negative'. Facilities Ratings ---------- ------- INR200 Million Term Loan D (Downgraded from B-/Negative) The rating revision reflects instances of delay by ACG in servicing its debt; the delays have been caused by ACG's weak liquidity. The rating also factors ACG's exposure to risks related to cyclicality in the hotel industry. This weakness is partially offset by the experience of ACG's promoters in the hospitality industry. ACG, incorporated in 2007, has set up a three-star hotel named Signature Grand in Hari Nagar (Delhi). The 8-floor, 32-room hotel, which also has a restaurant and 2 banquet halls, was built at an estimated cost of around INR405 million. The hotel commenced operations in August 2010. ALLIANCE PETROLEUMS: CRISIL Reaffirms 'B' Cash Credit Rating ------------------------------------------------------------ CRISIL's rating on the bank facility of Alliance Petroleums Pvt Ltd continues to reflect APPL's weak financial risk profile, and large working capital requirements driven by long receivables cycle. The impact of these weaknesses is mitigated by the benefits that APPL derives from its position as a leading consignment agent for Essar Oil Ltd in North India. Facilities Ratings ---------- ------- INR220 Million Cash Credit Facility B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that APPL will maintain its operating margin and benefit from scaled-up operations over the medium term. The outlook may be revised to 'Positive' if APPL's capital structure improves significantly, led by sustained improvement in profitability. Conversely, the outlook may be revised to 'Negative' if APPL's liquidity deteriorates significantly because of substantial increase in working capital requirements. Update APPL has reported an operating income of INR1,980.7 million for 2009-10 (refers to financial year, April 1 to March 31), which was marginally lower than CRISIL's expectation; this was mainly driven by increase in prices of furnace oil adversely impacting the sales. Also, APPL's operating margin continues to be low, in line with CRISIL's expectation, because of APPL's trading business. Small cash accruals because of low profitability and large working capital requirements continue to constrain the company's liquidity, reflected in its high bank limit utilization of about 93% on an average in the past 12 months. Also, the financial risk profile is expected to remain constrained because of large working capital requirements. About Alliance Petroleums APPL, currently headed by Mr. Sameer Anand, is a consignment agent for Essar Oil and Haldia Petro Chemicals Ltd, and deals in industrial petrochemicals such as furnace oil (FO) and carbon black feed stock oil (CBFS). The company has been a consignment agent for Essar Oil's FO since May 2008. APPL reported, on provisional basis, a profit after tax (PAT) of INR4.0 million on net sales of INR19,80.7 million for 2009-10, against a PAT of INR4.0 million on net sales of INR1,210 million for 2008-09. CANARA BANK: Moody's Assigns (P)Baa2 Rating to Sr. Unsecured Notes ------------------------------------------------------------------ Moody's Investors Service has assigned a provisional (P)Baa2 long- term foreign-currency rating to Canara Bank's proposed senior unsecured notes under its US$1 billion updated medium-term note programme to be issued through its London and Hong Kong branches. The exact amount, coupon and maturity of the issuance have yet to be decided. The notes are expected to be listed on the Singapore stock exchange. Ratings Rationale Canara Bank's Baa2 foreign-currency senior unsecured rating is derived from its D+ bank financial strength rating, which maps to a baseline credit assessment of Baa3, and Moody's assessment of a very high probability of systemic support in the event of need. The BFSR reflects the bank's significant franchise and market presence throughout India, comfortable liquidity profile as well as good profitability and adequate capitalization levels. However, Moody's notes that the rating is constrained by the bank's high single-party exposure concentration to the Indian government through government securities, similar to other Indian banks. Canara Bank, as a majority government-owned bank, enjoys a very high probability of systemic support in Moody's view, leading to a one-notch rating uplift for the Baa2 long-term global local currency deposit rating from its Baa3 BCA. The bank's most recent (unaudited) results -- for the nine months ending December 2010 -- point to a 24.2% year-on-year increase in net profit to INR31.3 billion (US$699 million). Moody's attributes the increase in net profitability to rising net interest income backed by strong loan growth (29%) and significant improvements in net interest margins, despite the 17.6% decline in non-interest income over the same period. As the Indian economy resumed its high growth momentum, Canara Bank's asset quality improved during the first nine months of FY2011, resulting in higher recoveries and lower slippages into non-performing loans. The ratio of NPLs to gross loans (gross NPL ratio) declined to 1.44% at end-December 2010, from 1.77% in the previous year, while the net NPL ratio fell to 1.05% from 1.34% over the same period. Moody's notes that capitalization remained adequate, with the total capital adequacy ratio under Basel II at 13.02% (including nine-month net profits CAR is estimated at 14.56%) and the Tier 1 ratio at 8.27% as of the end of December 2010. The last rating action on Canara Bank was implemented on Jan. 27, 2010, when Moody's downgraded the rating on its upper Tier 2 subordinated notes to Ba1 from Baa3 and confirmed the Ba2 rating on the perpetual hybrid Tier 1 notes. Canara Bank, headquartered in Bangalore, had total assets of INR2,981 billion (US$66.7 billion) as of the end of December 2010. COLOURFLEX LAMINATORS: CRISIL Reaffirms 'BB' Rating on Term Loan ---------------------------------------------------------------- CRISIL ratings continue to reflect Colourflex Laminators Ltd's weak financial risk profile, marked by high gearing and small net worth, small scale of operations, and its exposure to intense competition in the flexible packaging industry. These rating weaknesses are partially offset by CLL's diversified customer base and long track record in the flexible packaging industry. Facilities Ratings ---------- ------- INR70 Million Cash Credit BB/Stable (Reaffirmed) INR47 Million Rupee Term Loan BB/Stable (Reaffirmed) INR25 Million Proposed LT Bank BB/Stable (Reaffirmed) Loan Facility INR45 Million Letter of Credit P4+ (Reaffirmed) Outlook: Stable CRISIL believes that CLL will continue to benefit from its consistent track record in flexible packaging industry. The outlook may be revised to 'Positive' in case CLL registers more- than-expected growth in revenues and profitability while enhancing its customer base, leading to better debt protection metrics and a substantial improvement in its capital structure. Conversely, the outlook may be revised to 'Negative' if the company's operating margin is adversely affected by raw material price volatility or if its debt protection metrics deteriorate due to large, debt- funded capital expenditure programmes. Update CLL's registered an increase of around 18% in its operating margin year-on-year in 2009-10 (refers to financial year, April 1 to March 31), in line with CRISIL's expectations. For the eight months ended November 2010, the company has recorded an operating income of around INR490 million. The increase in sales was on account of new orders from the export segment and other milk dairies. The company's operating margin has remained stable, at around 10% for 2009-10 and the eight months ended November 2010. CLL's operations remain working capital intensive in nature, with gross current assets of around 160 days. The company's receivables period is around 80 days, while it stocks inventory for around 45 days. On account of its large working capital requirements, the company's liquidity remains constrained. Company has no major capex plans in medium term. About Colourflex Laminators CLL, a closely held public limited company, was incorporated in 1994. It has a manufacturing unit in Mehsana (Gujarat). The company manufactures flexible packaging material in different forms as per the requirements of its customers. The packaging is offered either in the form of rolls or pouches. The company has a capacity of around 250 tonnes per month. The company derives its revenues mainly from the fast-moving consumer goods segment and has a well-diversified customer profile. Colourflex reported a profit after tax (PAT) of INR 13 million on net sales of INR509 million for 2009-10, against a PAT of INR 14 million on net sales of INR432 million for 2008-09. COMET TECHNOCOM: CRISIL Assigns 'BB-' Rating to INR65MM Overdraft ----------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank facilities of Comet Technocom Pvt Ltd. Facilities Ratings ---------- ------- INR65.0 Million Overdraft BB-/Stable (Assigned) INR5.0 Million Proposed LT Bank BB-/Stable (Assigned) Loan Facility INR10.0 Million Bank Guarantee P4+ (Assigned) The ratings reflect Comet's weak financial risk profile, marked by low net worth, and weak debt protection measures. The company's large working capital requirements and low profitability have led to weak debt protection metrics. These rating weaknesses are partially offset by the promoters' extensive experience and Comet's established industry track record reflected in strong customer relationships. Outlook: Stable CRISIL believes that Comet will benefit from its established customer relations and the extensive experience of its promoters over the medium term. The outlook may be revised to 'Positive' in case of significant increase in revenues and profitability, leading to strengthening of the company's financial risk profile. Conversely, the outlook may be revised to 'Negative' in case Comet's financial risk profile weakens, because of significant decline in revenues and profitability, or decline in capital structure caused by larger-than-expected debt-funded capital expenditure, or a considerable stretch in the working capital cycle. About Comet Technocom Comet was set up in 1992 by Mr. Deo Kishan Mohta for manufacturing components for railway bogies and wagons. The company located in Howrah, West Bengal, manufactures brake beams, spring plank, air brake pipe, strain disc hardware, shackle hardware, and metal pockets, among others. The company supplies its products to the Indian Railways, and private wagon manufacturers such as Texmaco Ltd, Titagarh Wagons Ltd, and Bharat Wagon & Engineering Company Ltd. Comet reported a profit after tax (PAT) of INR1.9 million on net sales of INR290.9 million for 2009-10 (refers to financial year, April 1 to March 31), as against a PAT of INR1.5 million on net sales of INR277.7 million for 2008-09. DIGAMBER CAPFIN: CRISIL Reaffirms 'B+' Rating on INR15MM Loan ------------------------------------------------------------- CRISIL's rating on the long-term bank facilities of Digamber Capfin Ltd continues to reflect DCL's exposure to increased regulatory and legislative risks associated with the microfinance sector and to the constrained funding environment across microfinance institutions (MFIs). Facilities Ratings ---------- ------- INR90 Million Cash Credit Facility B+/Stable (Enhanced from INR45 Million) INR15 Million Working Capital B+/Stable (Reaffirmed) Demand Loan Facility The rating also factors in DCL's limited experience and small presence in the microfinance business, with regional concentration in operations, and modest financial risk profile. These rating weaknesses are partially offset by DCL's sound asset quality. Outlook: Stable CRISIL believes that DCL will remain a relatively small player within the MFI space over the medium term. Given DCL's limited experience, its ability to grow its business and scale up systems and processes to manage asset quality and operating expenses, are yet to be demonstrated. The outlook may be revised to 'Positive' if the company improves its profitability, scales up its business, strengthens its capitalization levels, and endorses the new regulatory framework, while maintaining its asset quality. Conversely, the outlook may be revised to 'Negative' if DCL is unable to raise adequate funds to scale up its operations and meet its liquidity requirements, or if its asset quality deteriorates substantially, thereby impacting its capitalization levels. DCL's inability to move to the new regulatory framework may also jeopardise DCL's business and thereby impact its credit risk profile. About Digamber Capfin Incorporated in 1995, DCL is a non-deposit-taking, non-banking financial company registered with the Reserve Bank of India. DCL lends to joint-liability groups and provides top-up loans to clients in and around Jaipur and five other districts of Rajasthan. It entered the microfinance business in 2007, prior to which it was involved in two-wheeler financing. As on Dec. 31, 2010, DCL had a borrower base of 11,695 members and a network of 11 branches. For 2009-10 (refers to financial year, April 1 to March 31), DCL reported a profit after tax (PAT) of INR0.6 million on a total income of INR12.3 million, against a PAT of INR0.4 million on a total income of INR10.8 million for the corresponding period of the previous year. For the nine months ended Dec. 31, 2010, the company's net profit was INR0.7 million on a total income of INR12.9 million. GOENKA SHIKSHA: CRISIL Reaffirms 'D' Rating on INR66.9MM Term Loan ------------------------------------------------------------------ CRISIL's rating on the bank facilities of Goenka Shiksha Avam Shodh Sansthan continues to reflect regular delays of about a week to 15 days by GSASS in servicing its term loan because of weak liquidity. Facilities Ratings ---------- ------- INR66.9 Million Term Loan D (Reaffirmed) GSASS also has a weak financial risk profile since the trust charges minimum fee from its students. However, the trust benefits from its established industry presence and its regular financial support from its trustees. Update GSASS's performance in 2009-10 (refers to financial year, April 1 to March 31) and in the current financial year has been in line with CRISIL's expectation. In 2009-10, the trust collected about INR56 million in fees. It undertook a capital expenditure (capex) programme of about INR30 million in 2009-10 towards setting up buildings and other amenities at its campus. This was funded by INR10.9 million of donations from trustees and the rest by unsecured loans, also extended by trustees and entities owned by them at a low interest rate of 7%. These loans shall be paid only after the bank loan is paid off. The trust's liquidity is weak, since it collects minimal fee from its students which results in modest profits. Though GSASS collects fee round the year from its various institutes, majority of the fee is collected in April and September, which leads to some cash flow mismatch. It has outstanding term loans of about INR66 million, for which, nine bi- annual repayments are to commence in April 2011. The trust plans to service these out of its fee collections, which CRISIL believes, may be inadequate unless supported by a substantial increase in student intake. It is likely to rely on additional funding from trustees. The commencement of loan repayments is expected to strain liquidity further. There is no further capex plan for the medium term. CRISIL believes that GSASS's liquidity shall remain constrained because of the trust's minimal profitability and commencement of loan installments. For 2009-10, GSASS reported a net profit of INR1.06 million on net revenues of INR56.4 million, against a net profit of INR0.14 million on net revenues of INR41.9 million in the preceding year. Set up in 1995 by Mr. S S Goenka, GSASS is a charitable and non- profitable trust that operates four educational institutions: Mohini Devi Mahila Mahavidyala, Goenka Public School, Goenka College of Pharmacy, and Mohini Devi Goenka Girls B.Ed College. All these institutes are in Sikar (Rajasthan). GNG EXPORTS: CRISIL Assigns 'P4+' Rating on INR50 Million LOC ------------------------------------------------------------- CRISIL has assigned its rating of 'P4+' on the bank facilities of GNG Exports. Facilities Ratings ---------- ------- INR50 Million Letter of Credit P4+ (Assigned) INR650 Million Packing Credit and P4+ (Assigned) Bill Purchase-Discounting Facility The ratings reflect geographical concentration in the firm's revenues, working-capital-intensive operations, below-average financial risk profile, and exposure to risks arising from adverse changes in regulations or foreign exchange rates. These weaknesses are partially offset by the benefits that the firm derives from its moderate risk management strategies and the vast industry experience of its promoters. GNG Exports was incorporated in 1993 in Kolkata by Mr. G N Agarwal and his son Mr. Praveen Agarwal. His other son, Mr. Vineet Agarwal, joined the business in 2006. The firm has been exporting iron ore fines of grades 59-63 to China since 2004. Prior to that, GNG Exports traded in minerals such as chrome, manganese, limestone, ready-made garments, and agro-commodities such as rice, sugar and wheat. These were discontinued gradually, depending upon demand-supply dynamics and changes in the regulatory environment. For 2009-10, GNG Exports reported a net profit of INR10.8 million on net revenues of INR1.85 billion, as against a net profit of INR4.1 million on net revenues of INR1.2 billion in the preceding year. JANKI DASS: CRISIL Assigns 'B-' Rating to INR70MM Cash Credit ------------------------------------------------------------- CRISIL has assigned its rating of 'B-/Stable' to the bank facilities of Janki Dass Rice Mills. Facilities Ratings ---------- ------- INR70 Million Cash Credit* B-/Stable (Assigned) INR30 Million Packing Credit* B-/Stable (Assigned) The ratings reflect JDRM's weak financial risk profile because of the highly working-capital-intensive nature of the rice industry, and exposure to risks related to geographical and customer concentration in revenue profile. These rating weaknesses are, however, partially offset by the extensive experience of the promoters in the rice business, and healthy growth prospects for the industry. Outlook: Stable CRISIL believes that JDRM will continue to benefit over the medium term from its longstanding presence in the industry. However, the firm's financial risk profile is expected to remain weak, during this period, because of its highly working-capital-intensive operations. The outlook may be revised to 'Positive' if JDRM improves its capital structure or operating margin, leading to improvement in its financial profile. Conversely, the outlook may be revised to 'Negative' in case of any unfavorable change in government policy for basmati rice exports, or if JDRM's working capital requirements increase significantly leading to pressure on the firm's financial risk profile. About Janki Dass Set up in 1986, JDRM is currently managed by Mr. Ravinder Kumar and his brother Mr. Rajesh Kumar. The firm processes basmati rice (1121 grade) at its plant at Taraori in Karnal (Haryana). JDRM has a total owned capacity of 2 tonnes per hour (tph) and has taken on lease a capacity of 2 tph from its group firm, Annapurna Rice Mills. JDRM exports basmati rice to importers in Dubai, Saudi Arabia, and Iran. The firm derives around 25% of its revenues from trading in rice, which is purchased from Punjab, Haryana, and New Delhi and then sold in the export market. JDRM reported a book profit of INR2.2 million on net sales of INR633.7 million in 2009-10, as against a book profit of INR0.8 million on net sales of INR266.5 million in 2008-09. KARAN KOTHARI: Fitch Assigns National Long-Term Rating at 'B+' -------------------------------------------------------------- Fitch Ratings has assigned India's Karan Kothari Jewellers Pvt Ltd a National Long-Term rating of 'B+(ind)' with Stable Outlook. Fitch has also assigned ratings to KKJPL's instruments: -- INR220m fund-based cash credit limits: 'B+(ind)'; and -- INR50m non-fund based limits: 'F4(ind)'. The ratings factor in KKJPL's robust sales growth and credit metrics. Its revenues have grown at a CAGR of 35% over four years to INR850m in FY10. The ratings are constrained by KKJPL's relatively small size of operations and its fully utilised working capital limits. At FYE10, the company's leverage (total adjusted debt/EBITDAR) was 6.64x and interest coverage (EBITDAR/gross interest + rent) was 1.43x. Furthermore, KKJPL has had negative cash flow from operations over the past three years mainly due to its high inventory position of around 180 days during this period, making the business highly working capital intensive. Fitch notes that the company plans to undertake an INR7.5 million to INR10 million capex during 2011-2012 to add floor space to its existing flagship jewellery showroom located at Nikalas Mandir Road, Itwari, Nagpur. This showroom premise is owned by its sponsors, and the company pays rent for the same. KKJPL is conceptualizing new showrooms in West Nagpur. These expansions have not been factored into the ratings. The capex would be funded through equity infusion from the sponsors. A negative rating action may be triggered by a sustained increase in KKJPL's leverage levels to beyond 7.5x due to margin contraction or working capital cycle lengthening. Any sustained deterioration in interest coverage to below 1x would also act as a negative rating guideline. Positive rating guidelines include KKJPL's higher EBITDAR margins of 5.5% along with a total adjusted debt/operating EBITDAR of below 6.0x and a sustained, significant improvement in interest coverage to above 2.0x. KKJPL, formerly known as M/s Karan Jewellers, was started by Smt Sheela Kothari in 1988. It was converted into a corporation in 2004. The company is primarily engaged in the trading of gold, silver and diamond jewellery. In FY10, the company had revenues of INR850 million (FY09: INR591 million), EBITDAR of INR32.22 million (FY09: INR26m) and a net profit of INR21.67 million (FY09: INR4.7 million). KUMAR ASHIS: CRISIL Assigns 'B-' Rating on INR45MM Term Loan ------------------------------------------------------------ CRISIL has assigned its 'B-/Stable/P4' ratings to Kumar Ashis Projects Ltd's bank facilities. Facilities Ratings ---------- ------- INR15.0 Million Cash Credit Limit B-/Stable (Assigned) INR45.0 Million Term Loan B-/Stable (Assigned) INR120.0 Million Packing Credit P4 (Assigned) Limit (PCL)/ Packing Credit Foreign Currency (PCFC) INR245.0 Million Letter of Credit P4 (Assigned) INR10.0 Million Bank Guarantee P4 (Assigned) INR45.0 Million Proposed ST Bank P4 (Assigned) Loan Facility The ratings reflect KAPL's weak liquidity, average financial risk profile, marked by weak debt protection metrics, moderate gearing and small net worth, and exposure to risks related to intense competition in the synthetic leather industry, and small scale of operations. These rating weaknesses are partially offset by KAPL's diversified customer and end-user industry profile. Outlook: Stable CRISIL expects KAPL to maintain a stable business profile on the back of established customer base and a diversified end user industry base. The financial risk profile is however expected to remain weak due to low profitability and moderate gearing. The outlook may be revised to 'Positive' if the company registers more than expected profitability resulting in higher cash accruals and hence improvement in its financial risk profile. Conversely, the outlook maybe revised to 'Negative' if lower than expected cash accruals or debt-funded capex puts pressure on company's financial risk profile. About Kumar Ashis Incorporated in 1982, KAPL manufactures polyvinyl chloride (PVC)- coated fabric, also known as synthetic leather, which is used in upholstery, footwear and automotive. Exports contribute around 70% to the company's revenues. KAPL's plant in Faridabad (Haryana) has capacity of 0.85 million metres per month. The plant is currently utilised at around 76%. The company is listed on Delhi Stock Exchange and Lucknow Stock Exchange. KAPL has plans to merge with its group company, Manish Vinyls Pvt Ltd, and is obtaining approvals from regulatory bodies. KAPL reported a profit after tax (PAT) of INR1.6 million on net sales of INR516 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR5.8 million on net sales of INR445 million for 2008-09. MAHESH KUMAR: CRISIL Assigns 'LB+' Rating to INR4.13cr Term Loan ---------------------------------------------------------------- ICRA has assigned the 'LB+' rating to the INR4.13 crore term loan facilities, 6.00 crore fund based facilities and the INR1.30 crore non fund based facilities of Mahesh Kumar Spinning Mills Private Limited. ICRA has also assigned the 'A4' rating to the INR0.75 crore non fund based limit facilities of the company. The ratings take into the account the company's small scale of operations restricting economies of scale and financial flexibility. The ratings also take into account the company's stressed liquidity profile characterized by low accruals, high gearing and weak coverage indicators. The ratings also take into account the high client concentration and lack of pricing power which exposes the company to fluctuation in raw material prices. The ratings take note of the experience of the promoters in textile industry. Mahesh Kumar Spinning Mills Private Limited is primarily engaged in the manufacture of grey fabric. Incorporated in 2002, the Company has an installed capacity of 14,112 spindles and 90 knitting machines. MKSMPL's manufacturing facility is located in Thandukaranpalayam, near Coimbatore (Tamil Nadu). The promoter and his family hold 97.5% of stake in the company and rest is held by promoter friends and relatives. The promoter of MKSMPL also has interest in Makesh Kumar Mills and Hotel MKM Classic. Makesh Kumar Mills engaged in the trading of grey cloth and garments. Recent Results The company reported a profit before tax of INR1.0 crore on operating income of INR 30.1 crore for the nine month ending December 31,2010, against profit before tax of INR 0.14 crore on operating income of INR26.7 crore for the year ended March 31, 2010. NICKUNJ EDM: Fitch Affirms National Long-Term Rating at 'B+' ------------------------------------------------------------ Fitch Ratings has affirmed India's Nickunj EDM Wires & Consumables Private Ltd's National Long-Term rating at 'B+(ind)'. The Outlook is Stable. Fitch has also affirmed the ratings on NEWCL's bank loan facilities: -- Outstanding INR7.1m term loans: 'B+(ind)'; -- INR30m fund-based working capital limits: 'B+(ind)'; and -- INR40m non-fund based working capital limits: 'F4(ind)'. The affirmations factor in NEWCL's presence in a niche product market and a strong customer base, supported by moderate credit metrics. The ratings also factor in the company's improved profitability in FY10 (end-March 2010) with EBITDA margin at 11.9% (FY09: 9.3%), which, however, is partially offset by the fall in its revenues by 7.6% yoy during the year. Fitch notes that NEWPL's market leadership position will strengthen further as it more than doubles its electronic discharge machining wires manufacturing capacity by end-FY11, which would benefit its ratings. The ratings are however constrained by NEWCL's very small size of operations, which increases the risk that commodity price volatility may impact the company's margins, as well as by its short track record in the manufacturing of EDM wires. Although the company does try to hedge its forex exposure by taking forward covers for all transactions to mitigate the impact of forex volatility, the customer concentration risk can still have a negative impact on the company's turnover and profitability. Furthermore, the company's cash flows from operations turned negative in FY10 to INR56.2 million (FY09: INR10.3 million) due to its significantly high working capital requirements of INR65.5 million during the year. This resulted in higher debt levels, and thus deterioration of NEWCL's credit metrics. In FY10, NEWCL's leverage deteriorated to 3.2x (FY09: 1.1x) and interest coverage to 2.9x (FY09: 3.9x). However, the equity infusion of INR15 million by its promoters in FY10 helped moderate its debt levels. Positive rating guidelines include a sustained increase in NEWCL's turnover, supported by stable profitability and interest coverage (operating EBITDA/ gross interest expense) of 3x or more. On the other hand, any deterioration in the company's liquidity and profitability or any additional debt impacting the interest coverage may be negative for the ratings. NEWCL, part of the Nickunj Group, was incorporated in 2008 for the manufacture of EDM wires and consumables, which are used in the machining and ceramics industry. In FY10, NEWCL reported revenues of INR150.9 million (FY09: INR163.3 million) and EBITDA of INR18 million (FY09: INR15.2 million). Its total debt was INR67.7 million in FY10. NICKUNJ EXIMP: Fitch Affirms National Long-Term Rating at 'B+' -------------------------------------------------------------- Fitch Ratings has affirmed India's Nickunj Eximp Enterprises Private Limited's National Long-Term rating at 'B+(ind)'. The Outlook is Stable. Fitch has also affirmed the ratings on NEEPL's bank loan facilities: -- Outstanding INR3.4m term loans: 'B+(ind)'; -- INR180m fund-based working capital limits (enhanced from INR81.9m): 'B+(ind)'; and -- INR160m non-fund based working capital limits (enhanced from INR130m); 'F4(ind)'. The affirmations factor in NEEPL's strong revenue growth in FY10 by 53% yoy to INR863.8m. The ratings also factor in the company's diversified presence in niche product categories like aerospace, defense, abrasives, graphite and ceramics, as well as in its strong customer base including several government organizations. The long track record and existing customer relationships with the Indian Government and private bodies also benefit the ratings. However, the ratings are constrained by deterioration in NEEPL's profitability to 4.08% in FY10 (FY09: 6.64%), which resulted in a lower-than-expected improvement in its leverage with net debt/ EBITDA at 4.3x during the year (FY09: 5.1x). The ratings are also constrained by the company's very small size of trading operations and thin margins. In addition, the ratings factor in NEEPL's high working capital requirements, which could impact liquidity, and the operational constraints involved in the trading of over 4,000 products. Although the company does try to hedge its forex exposure by taking forward covers for most transactions to mitigate the impact of forex volatility, the customer concentration risk can still have a negative impact on the company's turnover and profitability. Fitch also notes that a decline in demand owing to technological obsolescence of certain products or impact of international competition can put pressure on NEEPL's profitability. However, this downside risk is partly offset by the company's niche product profile, which is highly technological, as well as by the long- standing supplier arrangements for its products. Positive rating guidelines include sustained revenue growth with stable profitability, and significant improvement in liquidity situation resulting in leverage of 4.5x. On the other hand, any deterioration in liquidity and profitability or any large debt resulting in sustained leverage levels (net debt/ EBITDA) of over 6x may impact the ratings negatively. NEEPL, the flagship company of the Nickunj Group, was incorporated in 1986 for the trading of a diversified product portfolio, including products that have applications in sectors such as aerospace, defence, abrasives, graphite and ceramics. In FY10, NEEPL's EBITDA was INR35.2 million (FY09: INR37.4 million) and net income was INR16.6 million (FY09: INR10.8 million). OM KAILASH: ICRA Assigns 'LB+' Rating to INR8cr Cash Credit ----------------------------------------------------------- ICRA has assigned an 'LB+' rating to the INR 8.00 crore cash credit facility & INR 0.17 crore term loan facility of Om Kailash Cotton. The rating is constrained by the weak financial profile of the firm as reflected by thin operating and net margins due to inherently low value addition in the business and highly stretched capital structure as a result of high working capital borrowings. The rating further takes note of the firm's small scale of operations which limits scale economies. The rating also incorporates lack of diversification in the product profile and susceptibility of the cotton prices to seasonality and regulatory risks which together with the highly competitive industry environment further exerts pressure on margins. The ratings however considers the experience of the promoter in the cotton ginning industry and advantage by virtue of its location in cotton producing region giving it easy access to raw cotton. Om Kailash Cotton was incorporated in 2006. The firm is involved in the ginning & pressing of raw cotton and commenced operations in 2007. OKC deals in S-6 variety of cotton. The factory is located at Botad, Gujarat with an intake capacity of around 120 MT per day. The business is owned and managed by Madhav S. Zanjrukiya and his family members. Recent Results During FY 2010, the firm reported a profit after tax of INR0.17 Cr on an operating income of INR 48.30 Cr. ORIENT STEEL: ICRA Assigns 'LBB+' Rating to INR19.25cr Limits ------------------------------------------------------------- ICRA has assigned an 'LBB+' rating to the Rs 19.25 crore fund based working capital limits (including proposed limits of Rs 3.75 crore) of Orient Steel & Industries Limited. The outlook on the long term rating is stable. ICRA has also assigned an A4+ (pronounced A four plus) rating to the INR10.75 crore non-fund based bank limits of OSIL. The ratings take into account the experience of the promoters in the steel industry, favorable demand outlook for the products manufactured by the company driven by the positive outlook for the construction sector and the planned investment in the railway infrastructure in India, both of which account for the majority of the company's sales. ICRA also notes the improvement in operating profitability of the company in FY 2010, backed by savings in fuel cost and a reduction in employee costs. However, despite the improvement, the company's profitability remains low on an absolute level. The ratings also factor in the low levels of capacity utilization of the facilities, weak financial risk profile of the company characterized by high gearing and depressed coverage indicators and lack of any backward integration, which exposes the company's cash flow and profits to fluctuation in raw material prices, and the high working capital requirements that exerts pressure on the liquidity position of the company. While assigning the ratings, ICRA has also considered the capital expenditure plan for setting up the cold rolled formed sections unit at Faridabad, which exposes the company to project execution risks. About Orient Steel OSIL is a Kolkata-based company promoted by the Rajgharia group and is primarily engaged in the rolling of hot- rolled (HR) steel strip & cold- rolled (CR) steel strip at its Faridabad plant, with an annual capacity of 75,000 MT for HR strip and 13,000 MT for CR strip. OSIL also has a foundry unit in Liluah, West Bengal, with a 24,000 MT annual capacity that manufactures cast products like wagon under-carriage, bogey couplers and CMS Crossings for Indian Railways and private wagon manufacturers. Recent Results In 2009-10, OSIL reported an operating income of INR120.10 crore and net profit of INR2.09 crore as against an operating income of INR116.12 crore and net profit of INR1.08 crore in 2008-09. PRASANNA POWER: CRISIL Upgrades Rating on INR235MM LT Loan to 'B+' ------------------------------------------------------------------ CRISIL has upgraded its rating on the bank facilities of Prasanna Power Ltd to 'B+/Stable' from 'D'. Facilities Ratings ---------- ------- INR235.00 Million Long-Term Loan B+/Stable (Upgraded from 'D') INR5.50 Million Cash Credit B+/Stable (Upgraded from The upgrade follows timely servicing of debt by PPL over the six months through January 2011. PPL's promoters extended unsecured loans of INR17.5 million to the company to ensure timely repayment of term debt, and to fund the cost overrun of INR18.0 million. The upgrade also factors in CRISIL's belief that PPL will generate sufficient cash accruals to service its debt over the medium term, on the back of steady revenues from power generation. The rating reflects PPL's below-average financial risk profile, marked by high gearing and weak debt protection metrics, and exposure to hydrology risks. These rating weaknesses are partially offset by PPL's revenue stability because of the company's long-term, fixed-price, power purchase agreement (PPA) with Bangalore Electricity Supply Company Ltd, and the extensive experience of PPL's promoters in the power generation industry. Outlook: Stable CRISIL believes that PPL will continue to benefit over the medium term from its steady cash accruals from power generation. The outlook may be revised to 'Positive' if there is a significant and sustained increase in the company's cash flows, leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if PPL's cash flows are adversely affected by unplanned outages or prolonged drought in the Aniyur River resulting in a low plant load factor for the company's power generating unit, or if its capital structure weakens because of larger-than-expected debt-funded capital expenditure. About Prasanna Power PPL, incorporated in 1998, generates electricity from its mini- hydroelectric power plant on the Aniyur River in Belthangadi Taluk of the Dakshin Kannad District (Karnataka). The run-of-the-river plant has a total power generation capacity of 6 megawatt. PPL commenced commercial production in August 2009. There was also a cost overrun of INR18.0 million, increasing the cost of the project to INR461.5 million; the promoters have extended unsecured loans to the company to partly fund the overrun. PPL is a subsidiary of International Power Corporation Ltd, which was promoted by Mr. George Sakellaris, an American resident with around four decades of experience in the power sector. PPL was allotted the project on a build-own-operate-and-transfer basis by the Government of Karnataka for a period of 30 years. PPL has entered into a PPA with BESCOM for offtake of the entire power output. PPL reported a net loss of INR17.25 million on operating revenues of INR13.35 million for 2009-10 (refers to financial year, April 1 to March 31). RUKMANI POWER: CRISIL Upgrades Rating on INR225.8MM Loan to 'BB+' ----------------------------------------------------------------- CRISIL has upgraded its rating on Rukmani Power and Steel Ltd's bank facilities to 'BB+/Stable' from 'BB/Stable'. Facilities Ratings ---------- ------- INR225.8 Million Term Loan BB+/Stable (Upgraded from 'BB/Stable') INR30.0 Million Cash Credit BB+/Stable (Upgraded from 'BB/Stable') The upgrade reflects CRISIL's expectation of improvement in RPSL's financial risk profile on the back of its sustained cash accruals leading to improvement in debt protection metrics. RSPL's net cash accruals to total debt (NCATD) and interest coverage are estimated to be at 0.48 times and 5.1 times respectively for the year 2010-11, which has improved from 0.23 times and 1.9 times respectively in 2008-09. Going ahead, RSPL's financial risk profile is expected to comfortable for the rating category, despite its debt funded capital expenditure programme for increasing its installed capacity for bio-mass power plant, on back of its high profitability and low gearing. The rating is however, constrained on account of the implementation risks of the proposed capex programme of the company. The rating continues to reflect RPSL's customer concentration in revenue profile leading to limited pricing power. These rating weaknesses are partially offset by RPSL's stable revenues, supported by its long-term power purchase agreement (PPA) with Chhattisgarh State Electricity Board. Outlook: Stable CRISIL believes that RPSL will continue to generate stable revenues over the medium term, supported by its long-term PPA with CSEB. The outlook may be revised to 'Positive' if RPSL's financial risk profile improves significantly, most likely because of improved operating efficiency leading to lower cost of production, or if the company's net worth increases significantly. Conversely, the outlook may be revised to 'Negative' if CSEB delays payments to RPSL, thereby adversely affecting RPSL's liquidity, or if RPSL undertakes any new large, debt-funded capital expenditure programme, thereby weakening its capital structure. About Rukmani Power Incorporated in April 2004, RPSL is a closely held public limited company, promoted by Mr. Lakhiram Agrawal, Mr. Brijmohan Agrawal, and Mr. Sanjay Agrawal. The company has a 10-megawatt bio-mass power plant, which commenced operations in 2006, with a 6-tonne heat induction furnace for manufacturing billets. The billet plant has been shut down since October 2008 because of weak demand. The company plans to rent out the induction furnace from April 2010 onwards. RPSL reported a profit after tax (PAT) of INR8.2 million on net sales of INR247.0 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR2.9 million on net sales of INR275.7 million for 2008-09. SALVI CHEMICAL: CRISIL Cuts Rating on Cash Credit to 'BB' --------------------------------------------------------- CRISIL has downgraded its term ratings on the bank facilities of Salvi Chemical Industries Ltd (SCIL, part of the Salvi Chemical group) to 'B/Negative/P4' from 'BB/Stable/P4+'. Facilities Ratings ---------- ------- INR60.0 Million Cash Credit Limit B/Negative (Downgraded from 'BB/Stable') INR57.0 Million Term Loan B/Negative (Downgraded from 'BB/Stable') INR195.0 Million Letter of Credit P4 (Downgraded from 'P4+') INR0.5 Million Bank Guarantee P4 (Downgraded from 'P4+') The downgrade reflects the Salvi Chemical group's weak liquidity as a result of its working-capital-intensive operations arising out of its long receivables cycle. The downgrade also reflects the expected deterioration in the group's financial risk profile because of its large, planned, debt-funded capital expenditure programme (capex) for the medium term. The ratings continue to reflect the Salvi Chemical group's modest financial risk profile marked by small net worth and moderate debt protection metrics, and susceptibility to delays in realization of debtors. These rating weaknesses are partially offset by the extensive experience of the group's promoters in the pharmaceutical industry. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of SCIL and Nutracare International, collectively referred to, herein, as the Salvi Chemical group. This is because both entities are under a common management and in similar lines of business, with operational and financial linkages. Outlook: Negative CRISIL believes that the Salvi Chemical group's financial risk profile will deteriorate over the medium term on account of the proposed debt funded capex and also on account of the long receivables cycle of the group, which is funded by debt. The ratings may be downgraded if the group's financial risk profile weakens further on account of its stretching of its liquidity, most likely because of larger-than-expected debt-funded capex or a further stretch in its receivables cycle. Conversely the outlook may be revised to 'Stable' if there is fund infusion in the group, leading to improvement in its financial risk profile. About the Group SCIL was set up as a partnership firm in 1978 by Mr. Kantilal Salvi and his family members. In 2005-06 (refers to financial year, April 1 to March 31), the firm was reconstituted as a closely held public limited company, with Mr. Kantilal Salvi and his sons, Mr. Nirav Salvi and Mr. Kaushal Salvi, as the key management personnel. The company manufactures chemical and pharmaceutical products. SCIL has its registered office in Mumbai (Maharashtra), while its plants are in Boisar (Maharashtra). Nutracare International, which was set up in 2000 as a proprietorship firm by Mr. Kaushal Salvi, also manufactures chemical and pharmaceutical products. SCIL reported a profit after tax (PAT) of INR61 million on net sales of INR867 million for 2009-10, against a PAT of INR12 million on net sales of INR626 million for 2008-09. SAINOR LIFE: ICRA Assigns 'LB' Rating to INR15cr FB Limits ---------------------------------------------------------- ICRA has assigned 'LB' ratings to the INR15.00 crore fund based limits of Sainor Life Sciences Private Limited. In addition, ICRA has also assigned 'A4' rating to the INR3.00 crore non-fund based limit of the company. The ratings assigned by ICRA take into account the stretched liquidity position of the company due to delays in commissioning of the manufacturing unit. The company is yet to start full scale commercial production hence the lack of cash inflows and ongoing expenses result in tight liquidity in short term for the company. The ratings however draw comfort from the fact that this company is a part of Hyderabad based Sainor Group and part of its capacity will be utilized as backward integration for group company - Sainor Pharma Private Limited; which to some extent mitigates demand risk for company's products. Sainor Life Sciences Private Limited is a Sainor Group company which is setting up a plant in Jawaharlal Nehru Pharma City, Vishakhapatnam District of Andhra Pradesh for production of API/ intermediates. SRINIVASA SOYA: CRISIL Cuts Rating on INR125MM LT Loan to 'B-' -------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Srinivasa Soya Pvt Ltd to 'B-/Negative' from 'B/Stable'. Facilities Ratings ---------- ------- INR125.0 Million Long-Term Loan B-/Negative (Downgraded from 'B/Stable') INR120.0 Million Cash Credit B-/Negative (Downgraded from 'B/Stable') INR5.0 Million Proposed LT Loan B-/Negative (Downgraded from 'B/Stable') The downgrade reflects deterioration in SSPL's liquidity and financial profile, marked by net losses and negative net worth. SSPL reported a net loss of INR 48 million for 2009-10 (refers to financial year, April 1 to March 31), leading to negative cash accruals and net worth. The company is expected to report marginal net profit in 2010-11 (refers to financial year, April 1 to March 31). The downgrade also reflects lower than expected revenues, operating margins and cash accruals for SSPL and CRISIL's belief that the company's liquidity will continue to remain constrained due to inadequate internal cash flows to service the term debt obligations and high dependence on promoters' funds to ensure timely debt servicing. The ratings reflect SSPL's below-average financial risk profile, marked by negative net worth and weak debt protection measures, and exposure to risks related to volatility in soya prices, unfavorable government policies, small scale of operations, fragmentation in the industry and stabilization of operations. The impact of these weaknesses is mitigated by the benefits that the company derives from its promoters' experience in the edible oil industry. Outlook: Negative CRISIL believes that SSPL's liquidity will remain constrained over the medium term due to lower than expected revenues and cash accruals. Consequently, the company will have to rely on promoter funding to support the operations and ensure timely debt servicing. The rating will be downgraded in case of further deterioration in liquidity, leading to delays in repayment of term debt obligations. Conversely, the outlook may be revised to 'Stable' if the company achieves significant and sustainable growth in revenues and accruals, and improves its capital structure. About Srinivasa Soya Incorporated in 2008 by Mr. B Ramarao, Mr. Ajay Singh Parmar, and Mr. Amitabh Pohekar, SSPL has set up a soya solvent extraction plant in Karanji (Maharashtra), with a capacity to crush 500 tonnes of soya seeds per day. The company commenced production in September 2009. Mr. B Ramarao has other businesses in construction and infrastructure segments, while Mr. Ajay Singh Parmar and Mr. Amitabh Pohekar have experience in the edible oil industry. SSPL reported a net loss of INR48 million on net sales of INR209 million for 2009-10 (refers to financial year, April 1 to March 31). TECHNOCON SERVICES: CRISIL Assigns 'BB+' Rating to Cash Credit -------------------------------------------------------------- CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank facilities of Technocon Services. Facilities Ratings ---------- ------- INR50.00 Million Cash Credit BB+/Stable (Assigned) INR10.00 Million Bank Guarantee P4+ (Assigned) The ratings reflect Technocon's small net worth, and exposure to risks related to small scale of operations and geographical, and client concentration in its revenue profile. Technocon also has large working capital requirements, marked by high debtors. These rating weaknesses are partially offset by Technocon's comfortable financial risk profile, marked by low gearing and strong debt protection metrics. Outlook: Stable CRISIL believes that Technocon will benefit from its promoters' extensive industry experience, over the medium term. The outlook may be revised to 'Positive' if Technocon improves its business risk profile by diversifying its customer base, and significantly scaling up operations and improving its margins. Conversely, the outlook may be revised to 'Negative' if Technocon undertakes any larger-than-expected debt-funded capital expenditure programme, thereby weakening its capital structure, or reports any significant decline in revenues and operating profitability. About Technocon Services Set up in 1982, Technocon is a partnership firm that mainly operates in West Bengal. It is an engineering service provider for Kirloskar Oil Engines Ltd for major part of West Bengal region. It also undertakes pipe laying projects for Garden Reach Shipbuilders and Engineers Ltd, and maintenance services of cellular towers for Indus Tower Ltd. Technocon reported a profit after tax (PAT) of INR17.5 million on net sales of INR206.9 million for 2009-10 (refers to financial year, April 1 to March 31), as against a PAT of INR14.4 million on net sales of INR163.5 million for 2008-09. TRV GLOBAL: CRISIL Reaffirms 'P4' Rating on INR80MM Packing Credit ------------------------------------------------------------------ CRISIL's rating on TRV Global Exports Pvt Ltd's bank facilities continues to reflect TRV's below-average financial risk profile marked by high gearing and weak debt protection because of its working-capital-intensive operations. Facilities Ratings ---------- ------- INR80.00 Million Export Packing Credit P4 (Reaffirmed) INR10.00 Million Bill Discounting P4 (Reaffirmed) The rating also factors TRV's exposure to intense competition in the granite industry, and susceptibility of its operating margin to volatility in foreign exchange rates. These rating weaknesses are partially offset by the benefits that TRV derives from its promoters' experience in the granite exports business. Update TRV's sales in 2009-10 (refers to financial year, April 1 to March 31) have been below CRISIL's expectations by 30% on account of logistics issues the company faced in shipping its rough granite blocks to its export clients. However, the company's sales in 2010-11 are expected to improve in line with CRISIL's expectations. TRV's profitability improved marginally during 2009-10 on account of a marginal increase in sales of rough granite blocks vis-a-vis trading volumes of rough granite blocks. The company's liquidity remains constrained because of the long inventory holding period of four to five months and a long operating cycle of over 90 days. This has resulted in fully utilized bank lines for the 12 months ending December 31, 2010. The company does not have any capex plans over the medium term. TRV reported a profit after tax (PAT) of INR3.0 million on net sales of INR13.7 million for 2009-10, against a PAT of INR1.3 million on net sales of INR109.5 million for 2008-09. About TRV Global TRV was set up as a partnership firm in 1999 by Mr. N Shivakumar, and was reconstituted as a private limited company in 2007. TRV exports granite blocks and slabs. The company is based in Chennai. TRV exports rough granite blocks to China, Taiwan, and Italy. The company owns one quarry in Karimnagar (Andhra Pradesh). The promoter has other group entities which are into quarrying and trading in rough granite blocks - Ganesh Granites (rated B/Stable/P4 by CRISIL) and Dhanesh Impex Pvt Ltd (rated B/Stable/P4 by CRISIL). All the entities are managed independently. UNIJULES LIFE: CRISIL Reaffirms 'BB+' Rating on Cash Credit ----------------------------------------------------------- CRISIL has reaffirmed its ratings on the bank facilities of Unijules Life Sciences Ltd (Unijules; part of the Unijules group). The ratings continue to reflect the group's aggressive growth plans and large working capital requirements, leading to pressure on its liquidity. These weaknesses are partially offset by the Unijules group's well-diversified revenue profile, strong brand equity in herbals division, and healthy revenue growth. Facilities Ratings ---------- ------- INR650.00 Million Cash Credit BB+/Stable (Reaffirmed) INR351.90 Million Long-Term Loan BB+/Stable (Reaffirmed) INR163.10 Million Proposed LT Bank BB+/Stable (Reaffirmed) Loan Facility INR67.50 Million Bank Guarantee/ P4+ (Reaffirmed) Letter of Credit For arriving at its ratings, CRISIL has consolidated the business and financial risk profiles of Unijules and Unijules' majority- owned subsidiary, ZIM Laboratories Ltd. This is because both companies, together referred to as the Unijules group, have common promoters and management, and are in similar lines of business. Outlook: Stable CRISIL believes that Unijules group's debt protection metrics are expected to remain moderate over the medium term. The outlook may be revised to 'Positive' if the group's liquidity improves, on the back of improvement in its working capital management or equity infusion. Conversely, the outlook may be revised to 'Negative' if the group's capital structure deteriorates or its debt protection metrics decline. About Unijules Life Unijules was set up in 2006, when the business of H Jules & Company Ltd was transferred to it; it also acquired all the assets of Universal Medicaments Pvt Ltd at this time. In 2007-08 (refers to financial year, April 1 to March 31), the company acquired a 50.2% stake in ZIM Labs, which was earlier held directly by the group's promoters. The group has a presence in manufacturing and marketing of herbal and allopathic drugs (all forms, including solids, liquids, semisolids, powder and parenterals). For 2009-10, Unijules reported a profit after tax (PAT) of INR126 million on net sales of INR1.98 billion, as against a PAT of INR81 million on net sales of INR1.64 billion for 2008-09. YASH AUTOMOTIVE: CRISIL Rates INR200 Million Cash Credit at 'BB-' ----------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable' rating to the cash credit facility of Yash Automotive Pvt Ltd. Facilities Ratings ---------- ------- INR200.0 Million Cash Credit Limit BB-/Stable(Assigned) The rating reflects YAPL's weak financial risk profile, marked by small net worth, weak debt protection metrics, and high total outside liabilities to tangible net worth ratio, and its exposure to risks related to intense competition in the automobile (auto) dealership market and supplier concentration in its revenue profile. These weaknesses are partially offset by YAPL's long standing presence in the automobile dealership business. Outlook: Stable CRISIL believes that YAPL will continue to benefit over the medium term from its long standing presence in the auto dealership business. Its financial risk profile will, however, remain weak on account of large working capital requirements. The outlook may be revised to 'Positive' in case of significant improvement in the company's financial risk profile, driven by fresh equity infusion. Conversely, the outlook may be revised to 'Negative' in case of an increase in the number of Tata Motors Ltd dealerships, or in case YAPL's financial risk profile deteriorates, due to a large, debt- funded capital expenditure programme. About Yash Automotive YAPL was incorporated in 2002 by Mr. Sanjeev Kumar. It is an authorised dealer of TML's commercial vehicles in Mirzapur, Badohi and Sonbhadra (all in Uttar Pradesh). It operates two showrooms, five extension counters, and two workshops. YAPL has also received approval from TML for passenger car dealerships in Mirzapur and Badohi; they are expected to be operational by March 2011. YAPL reported a profit after tax (PAT) of INR6.1 million on net sales of INR1092 for 2009-10 (refers to financial year, April 1 to March 31), as against a PAT of INR0.2 million on net sales of INR823 million for 2008-09. ========= J A P A N ========= EAST STREET: Moody's Downgrades Ratings on Various Notes -------------------------------------------------------- Moody's Japan K.K. has downgraded its ratings on the Series 1 Class A, B, C, D, E, Series 2 Class X2, X1, and A notes issued by East Street Referenced Linked Notes 2002-1 and the Class X1, A, B, and C notes issued by East Street Referenced Linked Notes 2004-1. Details are: Deal Name: East Street Referenced Linked Notes 2002-1 Series 1 (1) JPY10.0 billion Class A Notes, downgraded to Baa2 (sf); previously, A2 (sf) placed under review for possible downgraded on January 11, 2011 (2) JPY6.0 billion Class B Notes, downgraded to Ba3 (sf); previously, Baa3 (sf) placed under review for possible downgraded on January 11, 2011 (3) JPY5.0 billion Class C Notes, downgraded to Caa2 (sf); previously, B1 (sf) placed under review for possible downgraded on January 11, 2011 (4) JPY1.5 billion Class D Notes, downgraded to Caa3 (sf); previously, Caa1 (sf) placed under review for possible downgraded on January 11, 2011 (5) JPY500 million Class E Notes, downgraded to Caa3 (sf); previously, Caa2 (sf) placed under review for possible downgraded on January 11, 2011 Deal Name: East Street Referenced Linked Notes 2002-1 Series 2 (1) JPY15.0 billion Class X2 Notes, downgraded to Aa1 (sf); previously, Aaa (sf) placed under review for possible downgraded on January 18, 2011 (2) JPY9.0 billion Class X1 Notes, downgraded to A2 (sf); previously, A1 (sf) placed under review for possible downgraded on January 18, 2011 (3) JPY4.875 billion Class A Notes, downgraded to Ba1 (sf); previously, Baa2 (sf) placed under review for possible downgraded on January 18, 2011 Deal Name: East Street Referenced Linked Notes 2004-1 (1) JPY18.75 billion Class X1 Notes, downgraded to A2 (sf); previously, Aa2 (sf) placed under review for possible downgraded on January 11, 2011 (2) JPY7.5 billion Class A Notes, downgraded to Ba3 (sf); previously, Baa3 (sf) placed under review for possible downgraded on January 18, 2011 (3) JPY3.75 billion Class B Notes, downgraded to Caa2 (sf); previously, B2 (sf) placed under review for possible downgraded on January 18, 2011 (4) JPY3.0 billion Class C Notes, downgraded to Caa3 (sf); previously, Caa2 (sf) placed under review for possible downgraded on January 18, 2011 These transactions are structured finance CDO referencing ABS, RMBS, CMBS, and CDO assets, more than 70% of which are Japanese assets. Rating Rationale The rating downgrades reflect the credit deterioration of the referenced assets including ABS and CMBS. In January 2011, the notes were placed under review for possible downgrade. The rating actions also reflect the resolution of the watch-listing of referenced assets which were under review. In its expected loss analysis, Moody's applied the Monte Carlo simulation framework within CDOROM to model the loss distribution for SF CDOs. Moody's did not receive, or take into account a third-party due diligence report on the underlying assets, or financial instruments related to the monitoring of this transaction in the past six months. GODO KAISHA: Moody's Downgrades Ratings on Various Notes -------------------------------------------------------- Moody's Japan K.K. has downgraded the ratings on the Class B through D Notes issued by Godo Kaisha JLOC36. Details are: -- Class B Notes, Downgraded to A1 (sf) ; previously on Jan 19, 2011 Aa2 (sf) Placed Under Review for Possible Downgrade -- Class C1 Notes, Downgraded to Ba1 (sf); previously on Jan 19, 2011 Baa1 (sf) Placed Under Review for Possible Downgrade -- Class C2 Notes, Downgraded to Ba1 (sf); previously on Jan 19, 2011 Baa1 (sf) Placed Under Review for Possible Downgrade -- Class D Notes, Downgraded to Caa3 (sf); previously on Jan 19, 2011 Caa1 (sf) Placed Under Review for Possible Downgrade -- Deal Name: JLOC 36 -- Class: Class A through X Notes -- Issue Amount (initial): JPY 59.1 billion -- Dividend: Floating -- Issue Date: May 9, 2007 -- Final Maturity Date: February, 2016 -- Underlying Asset (initial): 34 loans backed by properties -- 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 36, effected in May 2007, represents the securitization of 34 loans backed by real estate. The originator transferred 34 loans to the Issuer SPE, JLOC 36, LLC, who issued the Class A through D and X Notes (Senior Notes) and Class E Notes (Junior Notes). These notes were then sold to investors. The Class A through D notes and Class X notes are rated by Moody's. The underlying loans are classified as either component loans or pooled loans. Component loans are further dividend into senior and junior components. The senior component and pooled loans are securing the Classes A through D Notes and Class X Notes. The interest and principal collections from the pooled loans will be used solely to pay down senior notes. Interest payments of the notes will be made sequentially. Principal payments will also be made sequentially, except in cases when the loans are prepaid. Prepayments of principal will be made pro-rata. Interest and principal collections from the component loans will be used to pay down the senior and junior notes. Interest payments on the senior and junior components will be made sequentially. Principal payments will also be made sequentially, except in cases when the loans are prepaid. Prepayments of principal will be made pro-rata among the senior and junior components of each component loan. Interest and principal payments made on the senior components will be used to pay the interest and principal of the senior notes. Interest payments of the notes are made sequentially. Principal payments will also be made sequentially, except in cases when the loans are prepaid. Prepayments of principal will be made pro- rata. Eleven of the 34 loans have been paid down in full and the principal of two loans suffered partial impairment as a result of special servicing thus far; the transaction is now backed by 21 loans. Four of 21 loans are under special servicing. Rating Rationale The recovery of the loans backed by JLOC36 may well be lower than Moody's assumptions in June 2009 (the last rating action on these notes), in light of the type of property and location. Moody's has thus re-assessed their recovery assumptions, lowering by 39% from their initial assumptions. In light of Moody's re-assessment, losses on the remaining balance of loans are highly likely. The current rating action reflects the increasing likelihood that the Class D notes will suffer additional losses. 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 ========= KUMHO ASIANA: Korea Express Share Sale Attracts Three Bidders ------------------------------------------------------------- Kyong-Ae Choi and Se Young Lee at The Wall Street Journal report that three major South Korean companies will compete for a controlling stake in Korea Express Co. in a deal that could be valued at more than KRW2 trillion and would be a litmus test for Korean mergers and acquisitions this year. The Journal relates steelmaker Posco said it has submitted a letter of intent to seek a 37.6% stake in Korea Express, a unit of Kumho Asia Group. Posco will face off against two other bidders, Korean conglomerates CJ Group and Lotte Group, with no other bidders having submitted letters of intent, people familiar with the situation told the Journal. One of the people said, however, that at least one of the three bidders could form a consortium with other parties to boost its chances of securing the deal, according to the Journal. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 17, 2011, Yonhap News said that sale managers for Korea Express Co. will hold a competitive bidding process to select a preferred bidder for the logistics firm in mid-May. Yonhap said the state-run Korea Development Bank, the main creditor of cash- strapped Kumho Asiana Group, is seeking to sell Korea Express in a bid to wrap up the restructuring of the group. Last year, the state-run lender took over Daewoo Engineering & Construction Co. in an effort to speed up the normalization of the conglomerate, now under a creditors-led debt rescheduling program. Bloomberg News reported that Kumho Asiana Group said Jan. 5, 2010, that it plans to raise KRW1.3 trillion from asset sales to help repay debt stemming from the 2006 takeover of Daewoo Engineering. The group has already sold assets and lost control of units including Daewoo Engineering, Kumho Industrial Co. and Kumho Tire Co. to creditors. Korea Express Co., Ltd. provides land and marine transportation, and logistics services. The company also operates stevedoring, distribution, and warehousing businesses that serve domestic and international customer needs. The company is part of the Kumho Asiana Group. About Kumho Asiana Established in 1946, Kumho Asiana Group is a large South Korean conglomerate, with subsidiaries in the automotive, industry, leisure, logistic, chemical and airline fields. The group is headquartered at the Kumho Asiana Main Tower in Sinmunno 1-ga, Jongno-gu, Seoul, South Korea. =============== M A L A Y S I A =============== BANENG HOLDINGS: Reports MYR42.13 Million Net Loss for 2010 ----------------------------------------------------------- Baneng Holdings Bhd reported a net loss of MYR42.13 million on MYR125 million of revenue for 2010, compared with a net loss of MYR72.33 million on MYR218 million of revenue for 2009. For three months ended Dec. 31, 2010, the company posted a net loss of MYR13.26 million on MYR34.58 million of revenue, compared with a net loss of MYR38.50 million on MYR42.13 million of revenue in the same period in 2009. The company's balance sheet as of Dec. 31, 2010, showed MYR153.99 million in total assets and MYR164.58 million in total liabilities, resulting in a stockholders' deficit of MYR10.65 million. A full-text copy of the company's unaudited annual report is available for free at: http://ResearchArchives.com/t/s?7490 About Baneng Holdings Baneng Holdings Bhd (KUL:BANENG) is a Malaysia-based company engaged in investment holding and provision of management services. The Company operates in one segment, which is the manufacturing of fabrics and garments. As of December 31, 2009, the Company had five subsidiaries: Maxlin Garments Sdn. Bhd., which is engaged in the manufacturing of garments; Chenille International Pte Ltd, which is engaged in trading of garments and provision of agency services; Seri Azhimu Jaya Garments & Textiles (B) Sdn. Bhd., which is engaged in the manufacturing of apparels, textiles and garments; Herizen Investment Pte Ltd, and Baneng Lesotho (Proprietary) Ltd. Baneng Holdings Bhd is now listed as an Amended Practice Note 17 company based on the criteria set by the Bursa Malaysia Securities Bhd. According to a disclosure statement with the bourse, the PN17 criteria was triggered resulting from Baneng Holding's auditors expressing a modified opinion with emphasis on Baneng Holding's going concern in the Company's latest audited consolidated financial statements for the financial year ended December 31, 2009, and the Company's shareholders' equity on a consolidated basis is less than 50% of the issued and paid-up share capital. VASTALUX ENERGY: Posts MYR228,208 Net Loss in December 31 Quarter ----------------------------------------------------------------- Vastalux Energy Berhad disclosed with the Bursa Stock Exchange its unaudited financial results for fourth quarter ended Dec. 31, 2010. The company posted a net loss of MYR228,208 on no revenues in the quarter ended Dec. 31, 2010, compared with a net loss of MYR36.85 million on MYR32.29 million of revenue in the same quarter of 2009. At Dec. 31, 2010, the Company's consolidated balance sheet showed MYR272.02 million in total assets, MYR223.09 million in total liabilities, and MYR77.45 million in total stockholders' equity. A full-text copy of the company's quarterly report is available for free at http://ResearchArchives.com/t/s?7491 Vastalux Energy Berhad (KUL:VASTALX) is a Malaysia-based investment holding company. The Company, through Vastalux Sdn. Bhd., is engaged in the provision of offshore and onshore hook-up and commissioning, offshore topside and onshore facilities maintenance services, offshore and onshore minor fabrication works and charter of marine vessel. Its indirect subsidiaries are Vastalux Fabricators Sdn. Bhd., which is engaged in workshop and fabrications job; Vastalux Onshore Services Sdn. Bhd., which is engaged in onshore construction of oil and gas plant; Vastalux Capital Sdn. Bhd.; Vastalux E&C Sdn. Bhd., which is engaged in the provision of top side major maintenance works; Vastalux Offshore Services Sdn. Bhd., which is engaged in hook-up and commissioning works; Vastalux Marine Sdn. Bhd.; Merak Utama Sdn. Bhd, which is engaged in under water inspection for structural integrity; PT Vastalux Energy; V-Factor Sdn. Bhd., and Vastalux-Anpha Company Limited. Vastalux Energy Berhad has been considered a PN17 Company pursuant to Paragraph 2.1(e) of PN17. The PN17 criteria was triggered as a result of an expressed modified opinion with emphasis on the company's going concern on the latest audited consolidated financial statements for the financial year ended December 31, 2009, and shareholders' equity of the company on a consolidated basis as at September 30, 2010, is less than 50% of the issued and paid-up share capital of VEB as at September 30, 2010. On Feb. 23, 2011, the Company announced that pursuant to the Winding-Up of Vastalux Sdn. Bhd., the Company had triggered additional criteria under Paragraph 2.1 (c) of the PN 17 of the Main Market Listing Requirements. The Company has approximately nine months to submit its Regularization Plan to the relevant authorities for approval. VTI VINTAGE: Posts MYR5.4 Million Net Loss in December 31 Quarter ----------------------------------------------------------------- VTI Vintage Berhad posted a net loss of MYR5.40 million on revenue of MYR1.75 million for the quarter ended Dec. 31, 2010, compared with a net loss of MYR30.16 million on revenue of MYR1.90 million in the same period last year. At Dec. 31, 2010, the Company's consolidated balance sheet showed MYR48.06 million in total assets and MYR51.97 million in total liabilities, resulting in a MYR3.91 million stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2010, showed strained liquidity with MYR9.01 million in total current assets available to pay MYR38.41 million in total current liabilities. A full-text copy of the Company's quarterly report is available for free at http://ResearchArchives.com/t/s?748f About VTI Vintage VTI Vintage Berhad is an investment holding company. It also provides management services to its subsidiaries. The Company, through its subsidiaries is principally engaged in the manufacturing and trading of roof tiles, investment holding and trading of roof tiles and roof related products, supply and laying of roof tiles and installation of roofing on a consignment basis and manufacture, supply and installation of steel related building materials. On February 25, 2010, VTI Vintage Berhad was classified as an Amended Practice Note 17 issuer based on the criteria set by the Bursa Malaysia Securities Bhd as it has triggered Paragraph 2.1 (a) of the PN17. ==================== N E W Z E A L A N D ==================== AORANGI SECURITIES: HMF Investors to Face 'Considerable Loss' ------------------------------------------------------------- The latest Hubbard Management Funds Statutory Managers report reveals that the time frame for repayment from the Hubbard Management Funds, one of Allan Hubbard's firms under statutory management, is being pushed out to 2012. The statutory managers said the fund has incurred a NZ$7.152 million loss between September 30, 2010 and January 31, 2011. Overall, however, the valuation of HMF at Jan. 31, 2011, is slightly ahead of the value at the start of the Statutory Management in June 2010, at NZ$48.75 million. The statutory managers said that despite the 5.03% rise of the NZX50 and the ASX 200 by 3.73% between September and January, HMF suffered a decline due to investments in Pike River Coal, NZ Oil and Gas, the reconstruction of the Mercer Group and the share price volatility around Olympus Pacific. "The impact of these declines could have been much worse had steps not been taken to reduce risk. 400,000 HMF shares in NZ Oil and Gas Limited were sold along with 446,386 shares in Pike River Coal shortly before the Pike River disaster," the statutory managers said in a statement. HMF's holdings in Olympus Pacific were reduced by 534,683 shares to decrease the stocks dominance in the portfolio. By taking these actions, the statutory managers were able to save investors from a loss of over NZ$675,000. Since Jan. 31, 2011, HMF has invested NZ$1 million back into Mercer Group, following much research and many discussions with Mercer directors, executives and Mr. Hubbard. The result of this investment is that the holding of HMF in Mercer Group is approximately 17.75%. The statutory managers continue to work towards the ultimate distribution of HMF to investors. The report states that some shares recorded as belonging to HMF are subject to possible claims from others. They say shares have been pledged as security to financiers for borrowings made by Mr. Hubbard or parties related to him. As previously stated, statutory managers' reconciliation as at March 31, 2010, indicates that there were insufficient assets to provide investors the investments noted on their statements. There were also investments that were not allocated to investors and some valuations that, in the statutory managers' opinion, were incorrect. Once all adjustments and corrections were processed, the shortfall of assets compared with the investor statements is estimated at about NZ$31 million. "It is expected that investors will suffer a considerable loss compared with what was shown on their statements as at March 31, 2010, and because there are not enough shares to give investors the investments that were indicated on their statements, assistance is required from the courts to determine the entitlement of investors to the assets of HMF. The in-depth research conducted by the statutory managers since the last report has revealed a number of issues that will need to be taken into account in the distribution process. Based on current understanding, it is realistic to expect that the next application will be filed with the Court during the next six months, although much work is taking place to reduce this time period. The Court hearing and submission processes could take several months after this and as a result the earliest any form of distribution will occur will be in 2012. Statutory managers said they will do everything possible to expedite the process. Update on Aorangi Securities Limited and Associated Charitable Trusts under Statutory Management The statutory managers said that due to possible delays in postal delivery services, the sixth Aorangi report will not be available until March 9, 2011. 26 November 2010 The fifth Statutory Managers' report released to investors on Nov. 25, 2010, highlights that tardy interest payments by Aorangi Securities' borrowers continues to slow progress for the statutory managers with a total of NZ$5 million still outstanding. Aorangi Securities Limited The latest report reveals that the September cash collection is still NZ$2 million less than expected and there has been little improvement in the collection of arrears of NZ$3 million. Requests for payments due on Dec. 31 will be sent shortly and statutory managers are guardedly hopeful that the level of collection will be greater this quarter. With dairy cash flow projected to be stronger over the next six months better returns are expected and it is anticipated that arrears will also be paid. A key focus over the last month has been the ongoing analysis of the Aorangi business, which has been divided into three categories: * Category One includes 31 mortgage loans with a value at August 2010 of NZ$59 million. * Category Two includes 15 direct investments by Aorangi valued at NZ$47 million. These are made up of 12 farm loans, two commercial property investments and NZ$10 million in Southbury Group Limited, which is unlikely to be recovered because of its receivership. * Category Three is a loan to Te Tua Charitable Trust of approximately NZ$24 million. Aorangi's ability to recover full repayment or realization of investments is significantly reduced because of the level of overall indebtedness. The report identifies that only one in five borrowers are paying any interest on their loans to Aorangi. Work continues on realizing the assets of the trust for the benefit of Aorangi investors. The key issues are set out in previous reports and statutory managers continue to work their way through these issues. As reported in the Troubled Company Reporter-Asia Pacific on June 23, 2010, Bloomberg News said New Zealand appointed statutory managers for Aorangi Securities Ltd. and seven trusts, which are associated with Allan Hubbard, to protect investors and prevent fraud. Mr. Hubbard and his wife are also subject to statutory management because they are so closely connected with the businesses. The seven charitable trusts included in the statutory management are Te Tua, Otipua, Oxford, Regent, Morgan, Benmore and Wai-iti. Trevor Thornton and Richard Simpson of Grant Thornton were appointed as statutory managers. The Temple Bar Family Trust and Barns Charitable Trust were also put into statutory management in September 2010 on recommendation from the Securities Commission. Hubbard Churcher Trust Management and Forresters Nominees Company were also added to the list of businesses under management by Trevor Thorton, Richard Simpson and Graeme McGlinn on September 20, 2010. Aorangi Securities Ltd was incorporated in 1974 and is solely controlled by the Hubbards. CENTURY CITY: Owner Has "Back-Stop" Plan to Repay NZ$4-Mil. Debt ---------------------------------------------------------------- The New Zealand Herald reports that Wellington Phoenix owner Terry Serepisos has a "back-stop" plan to repay his NZ$4 million debts in case his loan from Western Gulf Advisory falls through. According to the report, Mr. Serepisos had announced a US$100 million (NZD$135 million) loan from WGA that would allow him to restructure his Century City empire, of which the Phoenix is a part. However, the NZ Herald says, the loan is yet to arrive -- with representatives of New Zealand's Inland Revenue Department saying they have yet to receive any assurances it will. The NZ Herald relates that Sydney developer Keith Johnson has told the Sydney Morning Herald he paid up-front fees of over NZ$4 million to WGA for a loan that never eventuated. The company's owner, Ahsan Ali Syed, has denied allegations that he has not been forthcoming with loans, the NZ Herald notes. The NZ Herald says the loan from WGA to Mr. Serepisos came under the spotlight on Monday when the High Court at Wellington heard an application from the IRD to liquidate five of Mr. Serepisos' Century City group companies, which owe the IRD and the Accident Compensation Corporation a total of NZ$4,011,097. Mr. Serepisos, through his lawyer Justin Toebes, did not oppose the application. Instead he filed an affidavit pledging his commitment to paying off his debts and outlined a means to do so, the NZ Herald adds. The Troubled Company Reporter-Asia Pacific, citing The Dominion Post, reported on March 7, 2011, that that the companies of Mr. Serepisos have been given an 11th hour reprieve from liquidation. The five Century City Companies, including the one that owns the Phoenix Football team, were due to face liquidation proceedings in the High Court at Wellington on March 7. But Associate Judge David Gendall gave them until Thursday, March 10, to firm up repayment plans or make arrangements to secure the debt against other property from the Century City group. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 14, 2010, the National Business Review said that the Inland Revenue Department applied to liquidate five of Mr. Serepisos' companies in October 2010 over NZ$3.58 million debt. The Serepisos companies under threat are Century City Hunter Street, Century City Investments, Century City Developments, Century City Management and Century City Football, which owns the Wellington Phoenix. ================= S I N G A P O R E ================= AMBASSADOR TOURS: Creditors' Proofs of Debt Due March 18 -------------------------------------------------------- Creditors of Ambassador Tours & Travel Pte Ltd, which is in liquidation, are required to file their proofs of debt by March 18, 2011, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 DIAGONAL CONSULTING: Creditors' Proofs of Debt Due April 4 ---------------------------------------------------------- Creditors of Diagonal Consulting Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by April 4, 2011, to be included in the company's dividend distribution. The company's liquidators are: Bob Yap Cheng Ghee Tay Puay Cheng Wong Peng Cheong Martin C/O 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 DG2L TECHNOLOGIES: Court Enters Wind-Up Order --------------------------------------------- The High Court of Singapore entered an order on Feb. 11, 2011, to wind up the operations of DG2L Technologies Pte Ltd. Chong, Lim & Partners LLP filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 DYNA-OKE CONSTRUCTION: Creditors' Proofs of Debt Due March 18 ------------------------------------------------------------- Creditors of Dyna-Oke Construction Pte Ltd, which is in liquidation, are required to file their proofs of debt by March 18, 2011, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 FOUNDATION ASIANA: Creditors' Proofs of Debt Due March 19 --------------------------------------------------------- Creditors of Foundation Asiana Regional Pte Ltd, which is in liquidation, are required to file their proofs of debt by March 19, 2011, to be included in the company's dividend distribution. The company's liquidator is: Yin Kum Choy c/o K C Yin & Co Certified Public Accountants, Singapore 138 Cecil Street #06-01 Cecil Court Singapore 069538 HENG DA: Court Enters Wind-Up Order ----------------------------------- The High Court of Singapore entered an order on Feb. 18, 2011, to wind up the operations of Heng Da Investments Pte Ltd. SBA Stone Forest Corporate Advisory (Shanghai) Co., Ltd (China) filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road #05-11/#06-11 Singapore 069118 LB QUEENSLAND: Creditors' Proofs of Debt Due April 4 ---------------------------------------------------- Creditors of LB Queensland Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by April 4, 2011, to be included in the company's dividend distribution. The company's liquidators are: Bob Yap Cheng Ghee Tay Puay Cheng Wong Peng Cheong Martin C/O 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 SINO-ENVIRONMENT CLEAN: Court to Hear Wind-Up Petition on March 18 ------------------------------------------------------------------ A petition to wind up the operations of Sino-Environment Clean Power Technology Pte Ltd will be heard before the High Court of Singapore on March 18, 2011, at 10:00 a.m. The Petitioner's solicitors are: PK Wong & Associates LLC 133 Cecil Street #18-02 Keck Seng Tower Singapore 069535 SIN TYE: Creditors' Proofs of Debt Due March 18 ----------------------------------------------- Creditors of Sin Tye Constructions Pte Ltd, which is in liquidation, are required to file their proofs of debt by March 18, 2011, to be included in the company's dividend distribution. The company's liquidator is: Goh Ngiap Suan c/o VA Planner Pte. Ltd. 336 Smith Street #06-308 New Bridge Centre Singapore 050336 =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Mar. 4, 2011 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Hyatt Regency Century Plaza, Los Angeles, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 7-9, 2011 INTERNATIONAL COUNCIL OF SHOPPING CENTERS Debt Workout, Transactions, and Repositioning of Distressed Assets The Wharton School, University of Pennsylvania, Philadelphia, Pa. Contact: 1-646-728-3468 or www.icsc.org/2011UV Mar. 7-9, 2011 AMERICAN BANKRUPTCY INSTITUTE Conrad Duberstein Moot Court Competition Duberstein U.S. Courthouse, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 10, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - Florida Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 10-12, 2011 AMERICAN BANKRUPTCY INSTITUTE SUCL/ Alexander L. Paskay Seminar on Bankruptcy Law and Practice Marriott Tampa Waterside, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 17-19, 2011 AMERICAN BANKRUPTCY INSTITUTE Byrne Judicial Clerkship Institute Pepperdine University School of Law, Malibu, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ April 27-29, 2011 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott, Chicago, IL Contact: http://www.turnaround.org/ May 5, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - New York City Association of the Bar of the City of New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ May 6, 2011 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference Hilton New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ June 6, 2011 AMERICAN BANKRUPTCY INSTITUTE Canadian-American Cross-Border Insolvency Symposium Fairmont Royal York, Toronto, Ont. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* 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 ***