/raid1/www/Hosts/bankrupt/TCRAP_Public/110426.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, April 26, 2011, Vol. 14, No. 81
Headlines
A U S T R A L I A
CENTRO PROPERTIES: Judge Says Directors Have Case to Answer
C H I N A
CHINA RITAR: Receives Nasdaq Staff Deficiency Letter
PARKSON RETAIL: S&P Raises LT Corporate Credit Rating to 'BB+'
H O N G K O N G
BROADBAND NETWORK: Court to Hear Wind-Up Petition on June 8
CHINA FEI: Court to Hear Wind-Up Petition on May 18
CHINA TENG: Court to Hear Wind-Up Petition on May 18
CHINA TREASURE: Ho and Au Step Down as Liquidators
CHUN KONG: Court Enters Wind-Up Order
ECLAT HOLDINGS: Court to Hear Wind-Up Petition on May 18
ENTERSYS LIMITED: Court to Hear Wind-Up Petition on June 8
EVER PROFIT: Court Enters Wind-Up Order
GREEN DEPOT: Court Enters Wind-Up Order
KAMMY TOWN: Creditors and Contributories to Meet on May 4
LYTEC ASIA: Court Enters Wind-Up Order
MATSUNICHI DIRECT: Court to Hear Wind-Up Petition on June 1
RECYCLE DEVELOPMENT: Court to Hear Wind-Up Petition on May 25
I N D I A
ASSOTECH BEBL: ICRA Assigns 'LBB+' Rating to INR10cr Bank Limits
BALAJI OIL: Fitch Upgrades National Long-Term Rating to 'BB(ind)'
BALPRADA HOTELS: ICRA Reaffirms 'LBB' Rating on INR65cr Term Loans
BALU INDIA: ICRA Puts 'LB+' Rating on INR30.30cr Bank Facilities
CHENDURAN COTSPIN: ICRA Assigns 'LBB-' Rating to INR37.22cr Loan
ELKAYPEE SPINNERS: ICRA Assigns 'LB' Rating to INR10cr Bank Loan
GIMPEX LIMITED: ICRA Assigns 'LBB+' Rating to INR1.00cr Loan
IMPERIAL READYMADE: Fitch Assigns 'B(ind)' National LT Rating
KJS CEMENT: ICRA Assigns 'LBB+' Rating to INR605cr Term Loans
MALLCOM INDIA: ICRA Assigns 'LBB' Rating to INR14cr Bank Limits
PRECIHOLE MACHINE: ICRA Puts 'LBB' Rating to INR10cr Bank Debts
PRIYANKA GEMS: ICRA Assigns 'LB+' Rating to INR98.16cr Bank Limits
RUSHIKESH PAPER: ICRA Assigns 'LB+' Rating to INR6.05cr LT Loan
SATYAM COMPUTER: CBI Probe on Financial Fraud Almost Complete
SATYAM COMPUTER: SC Cancels Bails Granted to Satyam Auditors
SEBACIC INDIA: ICRA Assigns 'LB+' Rating to INR43.2cr Term Loan
SHINGOTE AGRO: ICRA Reaffirms INR0.5cr Bank Limits' 'LBB-' Rating
SRI MATA: ICRA Assigns 'LBB-' Rating to INR47.37cr Bank Facilities
THIRUPATHY BRIGHT: ICRA Assigns 'LBB' Rating to INR1cr Term Loan
VIDYA BAL: ICRA Assigns 'LBB+' Rating to INR25.09cr Term Loans
I N D O N E S I A
BANK CIMB: S&P Upgrades Raises Counterparty Credit Rating to 'BB+'
BANK DANAMON: S&P Raises Counterparty Credit Rating to 'BB'
BANK MANDIRI: S&P Upgrades Counterparty Credit Rating to 'BB+'
GARUDA INDONESIA: Prepares Plan for Quasi Reorganization
DAVOMAS ABADI: S&P Affirms 'CCC+' Corporate Credit Rating
J A P A N
ALL NIPPON AIR: Moody's Changes Rating Outlook to Stable
TOKYO ELECTRIC: Mulls Cutting Workers' Annual Salaries by 20%
TOKYO ELECTRIC: 3 Banks to Book Impairment Losses on Tepco Shares
M A L A Y S I A
PUBLIC BANK: Fitch Affirms, Withdraws 'B/C' Individual Rating
N E W Z E A L A N D
WESTERN PACIFIC: Cancels All Insurance Contracts
V I E T N A M
* Moody's Negative Outlook on B1 Rating Reflects BOP Concerns
X X X X X X X X
* S&P's 2011 Global Corporate Defaults Now Total 13
* BOND PRICING: For the Week April 18 to April 22, 2011
- - - - -
=================
A U S T R A L I A
=================
CENTRO PROPERTIES: Judge Says Directors Have Case to Answer
-----------------------------------------------------------
The Sydney Morning Herald reports that seven Centro Properties
directors, including former chief executive Andrew Scott, have
agreed to give evidence on oath about what happened in late 2007
when they approved and released full-year accounts that failed to
disclose the property group had billions of dollars of short-term
debt.
According to SMH, the decision to put the directors on the stand
came after Federal Court judge John Middleton on April 20, 2011,
ruled that the Australian Securities and Investments Commission's
civil penalty case against them was not hopeless or necessarily
bound to fail.
SMH discloses that the non-executive directors are former chairman
Brian Healey, Centro's present chairman, Paul Cooper, the former
head of Centro's audit committee, Sam Kavourakis, present non-
executive director Jim Hall, and former non-executive directors
Graham Goldie and Sydney-based Peter Wilkinson.
SMH notes that lawyers representing the six non-executive
directors and Mr. Scott last week asked the judge, sitting in
Melbourne, for summary judgment in their favor, arguing ASIC's
case had no prospect of success. But Justice Middleton said: "I
have come to the view that there is a case to answer," according
to SMH.
Centro Properties decided in November 2010 to put all its assets
on the block after having received approval to refinance the next
round of debt. The sale of the assets comes almost three years to
the day that Centro's former chief executive, Andrew Scott, and
the board revealed the group did not have the funds needed to pay
the AU$4 billion of debt that was due in December 2007. That
resulted in the shares of the company dropping in value by as much
as 90%, according to the Sydney Morning Herald.
The Troubled Company Reporter-Asia Pacific reported on July 30,
2010, CNP secured a one-year extension from Dec. 31, 2010, to
Dec. 31, 2011, for US$2.3 billion of debt within Super LLC (a
joint venture of CNP, Centro Retail Trust and Centro MCS 40). The
extension includes Super LLC's US$1.7 billion bridge term loan
(US$1.2 billion CNP, US$0.5 billion CER) and US$580.0 million of
additional debt.
About Centro Properties
Centro Properties Group (ASX:CNP)--
http://www.centro.com.au/-- is a retail investment organization
specializing in the ownership, management and development of
retail shopping centres. Centro manages both listed and unlisted
retail property and has an extensive portfolio of shopping centres
across Australia, New Zealand and the United States. Centro has
funds under management of US$24.9 billion.
=========
C H I N A
=========
CHINA RITAR: Receives Nasdaq Staff Deficiency Letter
----------------------------------------------------
China Ritar Power Corp. received a letter dated April 18, 2011,
from the Nasdaq Stock Market (Nasdaq) stating that it failed to
timely file its Annual Report on Form 10-K for the year ended
December 31, 2010, and as a result, no longer complies with the
rules required for continued listing on the Nasdaq Capital Market
under Nasdaq Listing Rule 5250(c)(1).
Nasdaq requires that China Ritar submit a plan of compliance by
May 3, 2011, to advise Nasdaq of any action that China Ritar has
taken, or will take, to file the 10-K for 2010 and bring China
Ritar into compliance with the listing standards. China Ritar
intends to submit the required plan by May 3, 2011. If Nasdaq
accepts China Ritar's plan, they may grant an extension of 180
calendar days, or until October 12, 2011, during which China Ritar
can regain compliance. If Nasdaq does not accept the plan, or if
China Ritar does not regain compliance during any applicable
extension period, the Nasdaq staff will provide written notice
that China Ritar's common stock is subject to delisting.
China Ritar intends to file its 10-K for 2010 with the Securities
and Exchange Commission as soon as practicable.
About China Ritar
China Ritar -- http://www.ritarpower.com/-- designs, develops,
manufactures and markets environmentally friendly lead acid
batteries with a wide range of capacities and applications,
including telecommunications, Uninterrupted Power Source (UPS)
devices, Light Electrical Vehicles (LEV), and alternative energy
production (solar and wind power). China Ritar sells, markets and
services six series and 197 models of Ritar-branded, cadmium-free
valve-regulated lead-acid (VRLA) batteries. Products are sold
worldwide with sales in 81 countries including China, India, and
numerous markets in Europe and the Americas.
PARKSON RETAIL: S&P Raises LT Corporate Credit Rating to 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services said it had raised its long-
term corporate credit rating on Parkson Retail Group Ltd. to 'BB+'
from 'BB'. The outlook is stable. "At the same time, we raised
the issue rating on the company's US$200 million 7.875% senior
unsecured notes due 2011 to 'BB+' from 'BB'," S&P said.
"We raised the rating to reflect our view that Parkson will
continue to demonstrate good execution of its controlled growth
strategy," said Standard & Poor's credit analyst Bei Fu. "The
company's financial performance has steadily improved over the
past five years since its IPO, including during the market
downturn in 2008. It has a supportive balance sheet and strong
liquidity. We believe Parkson will continue to manage its growth
and balance sheet in a disciplined manner."
"Parkson has executed its growth strategy satisfactorily, in our
view. We expect its geographic coverage to continue to improve as
it opens stores in new markets, reducing store concentration risk.
The company targets to open seven to eight stores annually in the
next three years. Its gross sales grew at a compounded annual
rate of 16.2% in 2008-2010," S&P noted.
S&P continued, "In our opinion, the Chinese retail market has
strong growth potential for the next five years. We believe
Parkson's financial performance is likely to improve further as it
benefits from China's robust economic growth and increased retail
spending."
"The rating reflects the fragmented and competitive nature of the
Chinese retail market and Parkson's affiliation with Lion Group
(not rated), which, in our opinion, has a weaker credit profile.
These weaknesses are, however, offset by the company's favorable
concessionaire business model and improving geographic
diversification, and the good long-term growth prospects of the
Chinese retail sector," said Ms. Fu.
"Parkson's liquidity is strong, in our opinion. The company had a
cash balance and short-term investments of about Chinese renminbi
(RMB) 4 billion at the end of 2010 against a syndicated loan of
US$250 million (about RMB1.7 billion) due 2013. It has no other
borrowings. Parkson carried out an early redemption of its US$125
million notes due 2012 with a proportion of the syndicated loan
proceeds. In our analysis, we adjusted the interest-bearing bank
loans of RMB1.30 billion against pledged cash of the same amount
to reflect the early refinancing of the US$200 million bond due in
2011," according to S&P.
The company has been in a net cash position since 2005, excluding
operating-lease-adjusted debt. Its policy is to maintain a
minimum cash balance equal to its trade payables. Parkson has a
high dividend payout policy, at 50%.
"Due to Parkson's cash-generative concessionaire business model,
we expect the company to fund most of its expansion through cash
holdings and cash from operations. As a result, we anticipate the
company will be able to maintain or lower its gross borrowing
(excluding operating-lease-adjusted debt) in the next two years,"
S&P related.
According to S&P, "The outlook is stable to reflect our
expectation that Parkson will pursue accelerated growth by
leveraging its concessionaire model while maintaining strong
liquidity and disciplined financial management."
"We may lower the rating if the company's operating-lease-adjusted
credit metrics deteriorate because of a sudden downturn in the
Chinese economy, more intensified competition and more-aggressive-
than-expected expansion, or any negative impact from the
association with the Lion Group. In particular, if its operating-
lease-adjusted total debt to EBITDA rises toward 4x," S&P noted.
"An upgrade is unlikely in the foreseeable future. In the medium
to long term, we may, however, raise the rating if Parkson
executes its accelerated growth strategy smoothly such that it
becomes a market leader in the fragmented and competitive Chinese
department store market and maintains healthy margins," S&P added.
================
H O N G K O N G
================
BROADBAND NETWORK: Court to Hear Wind-Up Petition on June 8
-----------------------------------------------------------
A petition to wind up the operations of Broadband Network Systems
Limited will be heard before the High Court of Hong Kong on
June 8, 2011, at 9:30 a.m.
Au-Yeung Lo Chu Chris filed the petition against the company on
March 29, 2011.
The Petitioner's solicitors are:
Mason Ching & Associates
1803, 18th Floor
World-Wide House
19 Des Voeux Road
Central, Hong Kong
CHINA FEI: Court to Hear Wind-Up Petition on May 18
---------------------------------------------------
A petition to wind up the operations of China Fei Teng Educational
Foundation Limited will be heard before the High Court of
Hong Kong on May 18, 2011, at 9:30 a.m.
The Baptist Convention of Hong Kong filed the petition against the
company on March 10, 2011.
The Petitioner's solicitors are:
Mayer Brown JSM
18th Floor, Prince's Building
10 Chater Road
Central, Hong Kong
CHINA TENG: Court to Hear Wind-Up Petition on May 18
----------------------------------------------------
A petition to wind up the operations of China Teng Fei Foundation
Limited will be heard before the High Court of Hong Kong on
May 18, 2011, at 9:30 a.m.
The Baptist Convention of Hong Kong filed the petition against the
company on March 10, 2011.
The Petitioner's solicitors are:
Mayer Brown JSM
18th Floor, Prince's Building
10 Chater Road
Central, Hong Kong
CHINA TREASURE: Ho and Au Step Down as Liquidators
--------------------------------------------------
Ho Wai Chi and Au Ping Yun stepped down as liquidators of China
Treasure Enterprise Limited on April 15, 2011.
CHUN KONG: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on April 6, 2011, to
wind up the operations of Chun Kong Chemical & Plastics Co.,
Limited.
The Official Receiver is E T O'Connell.
ECLAT HOLDINGS: Court to Hear Wind-Up Petition on May 18
--------------------------------------------------------
A petition to wind up the operations of Eclat Holdings (H.K.)
Limited will be heard before the High Court of Hong Kong on
May 18, 2011, at 9:30 a.m.
Richold S.A. filed the petition against the company on March 8,
2011.
The Petitioner's solicitors are:
So Keung Yip & Sin
2203-2205, 22nd Floor
Wheelock House
No. 20 Pedder Street
Central, Hong Kong
ENTERSYS LIMITED: Court to Hear Wind-Up Petition on June 8
----------------------------------------------------------
A petition to wind up the operations of Entersys Limited will be
heard before the High Court of Hong Kong on June 8, 2011, at
9:30 a.m.
Well Elegant Enterprise Limited filed the petition against the
company on March 30, 2011.
The Petitioner's solicitors are:
Messrs. Liu, Chan and Lam
Rooms 1710-18, 17th Floor
Hutchison House
10 Harcourt Road
Central, Hong Kong
EVER PROFIT: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on April 6, 2011, to
wind up the operations of Ever Profit Industries Limited.
The Official Receiver is E T O'Connell.
GREEN DEPOT: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on April 6, 2011, to
wind up the operations of The Green Depot Limited.
The Official Receiver is E T O'Connell.
KAMMY TOWN: Creditors and Contributories to Meet on May 4
---------------------------------------------------------
Creditors and contributories of Kammy Town Limited will hold their
first meetings on May 4, 2011, at 10:00 a.m., and 11:00 a.m.,
respectively, at the Official Receiver's Office, 10th Floor,
Queensway Government Offices, 66 Queensway, in Hong Kong.
At the meeting, E T O' Connell, the company's liquidators, will
give a report on the company's wind-up proceedings and property
disposal.
LYTEC ASIA: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on April 6, 2011, to
wind up the operations of Lytec Asia Limited.
The Official Receiver is E T O'Connell.
MATSUNICHI DIRECT: Court to Hear Wind-Up Petition on June 1
-----------------------------------------------------------
A petition to wind up the operations of Matsunichi Direct H.K.
Limited will be heard before the High Court of Hong Kong on
June 1, 2011, at 9:30 a.m.
Pride Motion Limited filed the petition against the company on
March 29, 2011.
The Petitioner's solicitors are:
Cheung, Chan & Chung
Unit 5505, 55th Floor
Hopewell Centre
183 Queen's Road East
Wanchai, Hong Kong
RECYCLE DEVELOPMENT: Court to Hear Wind-Up Petition on May 25
-------------------------------------------------------------
A petition to wind up the operations of Recycle Development
Limited will be heard before the High Court of Hong Kong on
May 25, 2011, at 9:30 a.m.
Industrial and Commercial Bank of China (Asia) Limited filed the
petition against the company on March 11, 2011.
The Petitioner's solicitors are:
Edward C.T. Wong & Co.
4/F, Club Lusitano
16 Ice House Street
Central, Hong Kong
=========
I N D I A
=========
ASSOTECH BEBL: ICRA Assigns 'LBB+' Rating to INR10cr Bank Limits
----------------------------------------------------------------
ICRA has assigned an 'LBB+' rating to the INR10 crore fund based
bank limits of Assotech BEBL Infrastructure Private Limited. The
outlook on the long term rating is stable.
The rating takes into account the demonstrated ability of the
promoters' to execute large projects on its own, and low market
risks associated with ABIPL's ongoing project as a significant
portion of flats have already been sold. The rating takes note of
ABIPL's high project concentration risks, with the project being
the only revenue driver for the company, its exposure to execution
risks as a considerable portion of the project is still in the
construction stage, and exposure of the company's profitability to
fluctuations in the raw material price movements. ICRA notes that
ABIPL relies largely on customer advances for meeting the funding
requirements of the project that reduces its reliance on debt.
However, timely realizations from the customers' for the booked
units would be critical to ensure successful execution of the
project.
Incorporated in 2006, ABIPL is promoted by the Noida based
developer Assotech Limited and Bhubaneswar based B. Engineers and
Builder Limited. ABIPL is developing a residential project named
'The Cosmopolis' in Bhubaneswar, Orissa. The construction work
for the project began in December'09 and is expected to be
complete by December 2012.
BALAJI OIL: Fitch Upgrades National Long-Term Rating to 'BB(ind)'
-----------------------------------------------------------------
Fitch Ratings has upgraded India's Balaji Oil Industries Private
Limited's National Long-Term rating to 'BB(ind)' from 'BB-(ind)'.
The Outlook is Stable. The agency has also taken these rating
actions on Balaji Oil's instruments:
-- INR1.9m long-term loans (reduced from INR5m): upgraded to
'BB(ind)' from 'BB-(ind)';
-- INR30m fund-based working capital limits (enhanced from
INR10m): upgraded to 'BB(ind)' from 'BB-(ind)'; and
-- INR255.4m non-fund-based working capital limits (reduced
from INR270m): affirmed at 'F4(ind)'.
The upgrades reflect Balaji Oil's improved financial metrics in
FY10 with revenues of INR649.1 million (FY09: INR608.5 million),
EBITDA of INR24.3 million (FY09: INR3.4 million) at an EBITDA
margin of 3.7% (FY09: 0.6%) and debt/EBITDA of 0.8x (FY09: 6.7x).
For FYE11, the company estimates a turnover of INR810 million and
EBDT of INR21 million. The ratings continue to be constrained by
Balaji Oil's exposure to volatility in the international price of
crude palm oil (CPO). It has also increased its focus on branded
products; their proportion increased to 65% of sales in FY10
(FY09: 15% of sales). In the long run, Fitch expects this
strategy to help Balaji Oil realize visibility of profits and
stability of margins.
Sustained EBITDA interest and bank charges cover of below 1.5x
could impact the ratings negatively. On the other hand, a
positive guideline would be sustained EBITDA interest and bank
charges cover of above 3x.
Balaji Oil is in the business of refining CPO and sales of refined
palm oil, vanaspathi and bakery shortening. The founders of
Balaji Oil, Mr. Senthilathiban and his family, are backward
integrating to acquire CPO through an associate company that is
setting up a crushing unit in Karnataka for locally procured palm
seeds; Balaji Oil has guaranteed debt for this project of INR21m.
BALPRADA HOTELS: ICRA Reaffirms 'LBB' Rating on INR65cr Term Loans
------------------------------------------------------------------
ICRA has reaffirmed the 'LBB' rating assigned to INR65.00 crore
term loans of Balprada Hotels and Hospitality Services Private
Limited. ICRA has also reaffirmed the 'A4' rating assigned to
INR2.00 crore non-fund-based limits of Balprada. The long term
rating carries a stable outlook.
The reaffirmation of ratings takes into account the favorable
location of its project, and Balprada's tie-up with The Hilton
Group which, besides brand recognition, provides it access to
Hilton's global reservation systems. The ratings also draw
comfort from the fact that the entire debt for the hotel project
has been tied up and the repayment of the loans stretches to eight
years, spreading the debt obligation over a long period. The
ratings are however constrained by the company's high gearing
(2.76 times as on March 31, 2010); and the group's limited track
record in the hospitality sector that increases the execution
risks for the company. ICRA has also noted the fact that the
project is currently running with a delay; any further delay in
the project execution can result in cost overruns, putting the
overall profitability of the project under pressure.
Balprada Hotels and Hospitality Private Limited is currently
developing a four-star hotel at Golf Course Road in Gurgaon at a
cost of INR135 crore. The hotel will be funded by debt of INR100
crore and promoters' contribution of INR35 crore. The hotel
project (to be operated under the 'DoubleTree by Hilton' brand) is
currently under construction. The hotel will have 183 rooms and is
expected to be operational in July 2011.
Recent Results In FY10, there operating income of the company, as
the project had not commenced operations. The company reported
Profit after tax of INR0.3 crore, on account of non-operating
income.
BALU INDIA: ICRA Puts 'LB+' Rating on INR30.30cr Bank Facilities
----------------------------------------------------------------
ICRA has assigned an 'LB+' rating to the INR30.30 Crore fund based
facilities of Balu India. ICRA has also assigned an A4 rating to
the INR1.50 crore non-fund-based facilities of BI.
The assigned ratings factor in Balu India's weak financial
position as reflected by its stretched capital structure, weak
coverage indicators and tight liquidity position. The rating also
considers the firm's modest scale of operations in a highly
fragmented and competitive industry due to the presence of a
number of established players and competition from low cost
imports. The ratings however draw comfort from the long experience
of the promoters in the auto ancillary business, the robust demand
for crankshaft from OEM customers and the recent effort to cater
OEM customers namely Mahindra & Mahindra and Tata Motors providing
some revenue visibility. BI has plan to undertake further capital
expenditure to enhance capacities, the outlay for which will be
large considering BI's current scale of operations and the
successful execution of the same would be a key rating
sensitivities .
Balu India incorporated in 1990 a proprietorship concern engaged
in manufacturing and exporting of crankshaft for automobile
industry. The company has its registered head office in Mumbai
and manufacturing unit at Belgaum in Karnataka Recent Results:
During the period ended 2009-10, the company reported a net profit
of INR1.22 crore on a turnover of INR35.01 crore.
CHENDURAN COTSPIN: ICRA Assigns 'LBB-' Rating to INR37.22cr Loan
----------------------------------------------------------------
ICRA has assigned 'LBB-' rating to the INR37.22 crore fund based
facilities of Chenduran Cotspin (India) Private Limited. ICRA has
also assigned short term rating of 'A4' to the INR7.78 crore non-
fund based facilities of Chenduran. The outlook on the long-term
rating is stable.
The assigned ratings factor in the experience of the promoters in
the spinning business, established relationship with clients, and
the presence of windmills, which aids in mitigating the higher
power cost prevalent in Tamil Nadu translating into better margins
for the company. The ratings take into consideration the limited
pricing flexibility due to relatively small scale of operations,
adverse impact of cotton price volatility on margins unmatched by
equivalent yarn realizations, and weak financial profile
characterized by high gearing and leverage structure. The ratings
also take into account the highly competitive business environment
which restricts the bargaining power of players with similar
capacities.
Chenduran Cotspin (India) Private Limited was started in 2003 as
M/s. Thuran Spinning Mills Private Ltd and was managed by
Mr. P. Govindaswamy and his brothers. During 2008-09 the name of
the company was changed to Chenduran Cotspin (India) Private
Limited and is now fully owned by Mr. P. Govindaswamy and his
wife. Chenduran manufactures 100% cotton yarn, the Company does
not produce any value added yarn like mercerised yarn. The
Company has its spinning mill in Vedasandur near Dindigul, with an
installed capacity of 32,382 spindles out of which 14,000 spindles
were added in the last three years. Chenduran produces combed yarn
(85% to 90%), which is sold to knitting units through merchant
traders.
ELKAYPEE SPINNERS: ICRA Assigns 'LB' Rating to INR10cr Bank Loan
----------------------------------------------------------------
ICRA has assigned 'LB' rating to the INR10.00 crore fund based
facilities of Elkaypee Spinners Private Limited.
The assigned ratings factor in the experience of the promoters in
the spinning business, expected increase in revenues due to the
capacity addition in the last fiscal year (2010-11). The ratings
factor in the limited pricing flexibility due to current small
scale of operations, rising raw material costs and its impact on
margins, financial profile characterized by estimated high gearing
and low coverage indicators in the near term. The ratings also
consider the intense competition and excess supply situation
prevalent in the highly fragmented industry which restricts the
bargaining power of the players.
ESPL was promoted by Mr. P.Govindaswamy and his family members in
1988 as a partnership firm to manufacture specialty yarns and
other yarns required for the manufacturing of export garments.
Later, in May 1993 the firm was converted into a private limited
company- Elkaypee Spinners Private Limited. ESPL was working with
a capacity of 3024 spindles till March 2010. The Company has
recently expanded the capacity to 13,344 spindles supported by
term loans from SIDBI.
ESPL produces blended yarn (75% polyester and 25% cotton), which
is sold to merchant traders. The end market for yarn produced by
ESPL is Ichalkaranji Market and the end use is for weaving. ESPL
has increased its capacity in 2009-10 with a capital expenditure
INR9.4 Crore out of which INR3.5 Crore was funded through external
borrowings.
GIMPEX LIMITED: ICRA Assigns 'LBB+' Rating to INR1.00cr Loan
------------------------------------------------------------
ICRA has assigned an "LBB+" rating to the INR1.00 crore fund based
bank limits of Gimpex Limited. The outlook on the long term
rating is stable. ICRA has also assigned an "A4+" rating to the
INR195.00 crore fund based and INR90.00 crore non fund based short
term bank limits of Gimpex.
The ratings factor in the experience of the promoters in the
mineral export business, a favorable demand outlook for minerals
including iron ore, coking coal, barite and bentonite in the long
term, and an established client base of the company. The ratings,
however, are constrained by the risks inherent in the commodity
trading business including price volatility, low profitability and
high working capital intensity. The company is also exposed to
geographical and customer concentration risks, the latter however
is partially mitigated by the long standing relationship that
Gimpex has with them. The moderately aggressive capital
structure, coupled with low operating profitability, has led to
modest coverage indicators. The mineral trading operations and
profitability of the company is susceptible to unfavorable and
sudden changes in the Government policies like imposition of ban
on iron ore exports from the state of Karnataka in 2010 and the
hike in the export duty on iron ore in 2001-12. Although the
company has taken initiatives to sustain its scale of operations
by diversifying to newer products like coking coal, ability of the
company to earn adequate returns in these new businesses would be
critical for its future financial performance. ICRA takes note of
the iron ore mining activity undertaken by a subsidiary of Gimpex
in Laos, which is expected to improve the group's overall scale of
operations in South East Asia. However, Gimpex would be exposed
to country specific risks. The ratings also factor in the
corporate guarantee given by the company to group entities, which
is quite significant relative to the networth of the company as on
31st Mar 2010, and therefore further impacts the company's overall
financial risk profile. ICRA takes note of the group's large
investment plans in Andhra Pradesh for iron ore mining and a
beneficiation unit. ICRA would evaluate the impact of the same on
the credit profile of Gimpex, when the details and funding pattern
for the same are available.
Incorporated in 1974 as "Gimpex Minerals Private Limited", the
company's name was changed to "Gimpex Limited" in 1994. The
company initially concentrated on exports of barite and bentonite,
and later diversified into export of iron ore and mill scale in
2003. Iron ore and mill scale accounted for about 84% of its
total sales volume in 2009-10. The company also started coking
coal exports during 2009-10, and the same accounted for about 30%
of the total sales during the 10 months period ended Jan2011.
Recent Results
During the 2009-10, Gimpex reported a net profit of INR10.46 crore
on a turnover of INR656.90 crore. During the first six months of
2010-11, the company reported a net profit (provisional) of
INR7.70 crore on a turnover (provisional) of INR397.33 crore.
IMPERIAL READYMADE: Fitch Assigns 'B(ind)' National LT Rating
-------------------------------------------------------------
Fitch Ratings has assigned India's Imperial Readymade Garments
Factory India Private Limited a National Long-Term rating of
'B(ind)'. The Outlook is Stable. The agency has also assigned
'B(ind)'/'F4(ind)' ratings to Imperial's fund-based working
capital bank limits of INR80 million and non-fund-based bank
limits of INR35 million, as well as a 'B(ind)' rating to its term
loan of INR134.8 million.
The ratings reflect Imperial's small scale of operations and
limited operational track record (commercial operations started
from FY08). It also reflects the company's operational
constraints in the form of labor shortages and attrition, which
have resulted in low capacity utilization (FY10: 44%) and negative
financial performance (FY10: net loss INR7.0 million), leading to
low EBIDTA margins (4%-5%), net losses and high gearing
(debt/EBIDTA: 17.4x in FY10). The ratings are also moderated by
the high level of customer concentration as more than 90% of the
revenues are contributed by a single customer -- Jones Apparel
Group Inc.
Imperial's positive rating factors include the experience of
management in the textile industry since the late 1980s and the
long-standing relationship with the key customer.
Positive rating guidelines include a sustained improvement in
capacity utilization and EBIDTA margins, leading to an improvement
in interest coverage to above 1.5x and leverage to below 10.0x.
Any sustained deterioration in EBIDTA margins to below 5.0% and
interest cover to below 1.2x would be considered as a negative
rating guideline.
Imperial Readymade Garments is a Chennai based company, promoted
by Mr A. George in 2006. The company is engaged in the
manufacturing and exporting of men's and women's apparel. During
FY10, Imperial reported operating income of INR 254.6 million,
EBIDTA of INR13.9 million and EBIDTA margins of 5.4%.
KJS CEMENT: ICRA Assigns 'LBB+' Rating to INR605cr Term Loans
-------------------------------------------------------------
ICRA has assigned a long term rating of 'LBB+' to the INR605 crore
term loans and INR70 crore proposed bank facilities of KJS Cement
Limited. Outlook on the long term rating is stable.
The rating assigned by ICRA reflects the project execution risks
typical to green-field plants and group's limited experience in
the cement industry; which exposes the company to higher
competitive pressures from the existing players with established
brands. The rating is also constrained on account of pendency of
formal linkages for key raw material i.e. coal, which exposes the
company to risk on account of volatility in raw material prices.
The rating however derives strength from satisfactory progress
achieved on the project till date reducing the possibility of time
and cost over-runs; low regulatory risks in construction phase;
favorable capital structure (as reflected in a project gearing of
1.38 times); and low funding risk given the financial strength of
the promoters and the fact that entire debt tie-up is in place.
The rating also takes into consideration availability of limestone
reserves adequate for 40 years of operations; and access to
established brand and sales distribution network of group's steel
business, which can be leveraged by KJSCL. While assigning the
rating, ICRA has also taken into account the cyclical downturn,
which the industry is currently going through, as a result of
which the company's realizations and margins may get impacted in
the initial years of operations. Going forward, the company's
ability to complete the project within budgeted cost and time;
operate at optimum capacity utilization levels while attaining
optimal operating parameters and cost-efficiencies; and market
product successfully in its natural marketing region, would be the
key rating sensitivities.
A part of Kamal group of companies, KJS Cement Limited was
incorporated in 1983 as Diwan Lime Company Pvt. Ltd., with the
objective of undertaking mining operations and manufacturing
cement. The name of the company was subsequently changed to KJS
Cement Private Limited in November 2007 and subsequently to KJS
Cement Limited in February 2009 because of change in constitution
from private limited to public limited company.
KJSCL is currently setting up a green-field integrated cement
plant with an installed capacity of 1.65 million tonnes per annum
(mtpa) of clinker and 2.276 million tonnes per annum of cement, at
Maihar, Satna district (Madhya Pradesh). The project, which also
comprises of a 27 MW captive power plant, is estimated to cost
INR1,044.41 crore and is being funded in a debt: equity ratio of
1.38 times. Till February 28, 2011, the promoters had already
infused 75% of their total equity commitment of INR439.41 crore.
Construction work on the project commenced in October 2009 and is
scheduled to commence commercial operations in December 2011.
MALLCOM INDIA: ICRA Assigns 'LBB' Rating to INR14cr Bank Limits
---------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR14 crore fund based
bank limits of Mallcom India Limited. The outlook on the long
term rating is stable. ICRA has also assigned an 'A4' rating to
INR33 crore fund based bank limits and INR6.66 crore non fund
based bank limits of MIL.
The ratings take into account MIL's long track record in the
industrial safety products category that helps the company in
getting repeat orders and its diversified product portfolio that
caters to a varied requirement of the clients. The ratings also
take into consideration the recent sale of financial investments
that is likely to provide liquidity support to the company to an
extent. The ratings, are however, constrained by MIL's moderate
scale of operations, its weak operating profitability that has
resulted in low levels of cash accruals in the past, high
dependence on export incentives that keeps its profit margins
sensitive to the export policies of Government of India (GoI), and
a high working capital intensity of the business. In ICRA's
opinion, the ongoing weakness in several European countries, where
a majority of MIL's exports are made, is likely to keep the
revenues of the company depressed, at least in the short term.
ICRA notes that there has been a recent change in the shareholding
pattern of the company, wherein Delta Plus Group of France, who
was also one of the major clients of MIL, has sold its stake in
the company.
Incorporated in 1983, Mallcom (India) Limited is primarily engaged
in the manufacturing, export and distribution of a wide range of
industrial safety products (ISP) like textile garments, gloves,
shoes, and shoe upper. MIL has its manufacturing facilities at
five locations in India, with four units located in West Bengal
and one in Haridwar, Uttarakhand. During the third quarter of the
financial year 2010-11, there has been a significant change in
ownership pattern, wherein Delta Plus Group of France, who was
also one of the major clients of MIL, has sold its stake in the
company.
Recent Results
During 2009-10, MIL reported a PAT of INR2.05 crore on the back of
an operating income of INR90.6 crore. In 2010-11, MIL reported a
PAT of INR6.99 crore (provisional) on the back of a total income
of INR99.8 crore (provisional).
PRECIHOLE MACHINE: ICRA Puts 'LBB' Rating to INR10cr Bank Debts
---------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR10.00 Crore
fund-based bank facilities and 'A4' rating to the Rs.2.00 Crore
non fund based facilities of Precihole Machine Tools Pvt. Ltd.
The long-term rating has been assigned a 'Stable' outlook.
The ratings are constrained by PMT's weak competitive position as
reflected in small scale of operations, deterioration in revenue
and profitability in the last two fiscals and dependence on a few
clients for a major proportion of sales, especially in the export
market. The working capital intensity of operations is also high
because of the inventory requirements. The rating however,
favorably factors in PMT's established presence in the business
for over two decades, tie-up with reputed customers and suppliers
and its comfortable capital structure and debt coverage indicators
at present.
About Precihole Machine
Precihole Machine Tools Pvt. Ltd. was incorporated in the year
1991. The company is an ISO 9001:2008 certified entity engaged in
the business of manufacturing of deep hole drilling machines,
components used in deep hole drilling & processing for deep hole
drilling. The company has its manufacturing unit and registered
office at Thane, Mumbai. The company is also in the process of
setting up a new manufacturing plant at Pimpalgaon, Kalyan which
will be dealing in high value manufacturing of deep hole drilling
machines and components.
Recent results:
PMT recorded a net profit of INR0.37 Crore on an operating income
of INR11.50 Crore for the year ending March 31, 2010 as per
audited figures and net profit of INR0.38 Crore on an operating
income of INR9.21 Crore as per the unaudited figures for the
period ending December 31, 2010.
PRIYANKA GEMS: ICRA Assigns 'LB+' Rating to INR98.16cr Bank Limits
------------------------------------------------------------------
ICRA has assigned an 'LB+' rating to the INR98.16 crore fund based
limits of Priyanka Gems. ICRA has also withdrawn the 'A4' rating
assigned to the INR162.00 crore fund based limits of the company.
The assigned rating takes into account the declining revenues of
the firm, thin profitability margins along with the high working
capital intensity of the business. As a result, the debt
servicing indicators of the company are weak, as reflected in the
ratio of Net Cash Accruals / Debt at 2%. Further, the industry in
which Priyanka Gems is present is characterized by high
competitive intensity. As the sales of the firm are largely to
foreign markets , it is exposed to exchange rate fluctuations
though imports of rough and polished diamonds provide a natural
hedge to some extent. The rating however favorably factors in the
experience of the promoters in the cut and polished diamond
industry for over two decades and the diversified customer base of
the firm.
Established in 1991, Priyanka Gems is a partnership firm engaged
in the import of rough diamonds and export of Cut and Polished
Diamonds (CPDs). PG has three processing units at Surat & a sales
office in Opera House, Mumbai. PG recorded a net profit of
INR0.82 crore on an operating income of INR214.35 crore for the
year ending 31 March, 2010.
RUSHIKESH PAPER: ICRA Assigns 'LB+' Rating to INR6.05cr LT Loan
---------------------------------------------------------------
ICRA has assigned an "LB+" rating to the INR6.05 crore long-term
fund based bank facilities and an "A4" rating to the INR0.10 crore
short-term fund based bank facilities of Rushikesh Paper Mills
Private Limited.
The rating takes into account the stretched liquidity position of
the company as is reflected in consistently high limit
utilizations arising out of increasing working capital requirement
following a steady growth in turnover of RPMPL. The rating
assigned is also constrained on account of the suboptimal scale of
operations of the company and presence in lower end of the paper
segment, i.e. Kraft paper; which is a highly fragmented paper
segment and is dominated by large number of small suppliers,
thereby resulting in limited pricing power to manufacturers.
While the sales realizations have improved over last few years,
the benefits of improved realizations have been largely offset by
the increase in input costs, especially waste paper, which has
resulted in declining operating profit margins. The rating however
favorably factors in satisfactory operational performance of the
company as is reflected in improving capacity utilization over
past years and its history of profitable operations.
Going forward, the ability of the promoters to infuse the long
term funds in the company to improve its liquidity position and
scale of capacity expansion plan and funding thereof will remain
the key rating sensitivities.
RPMPL is promoted by Shri Sakharam Landge and is into the business
of manufacturing Kraft paper used for manufacturing of corrugated
packaging board. The company's manufacturing facilities are
located at Kolhapur district in the state of Maharashtra. The
company commenced its operations in March 2007 and the installed
capacity current stands at 10,920 Tons Per Annum.
As per the provisional results for FY 11, RPMPL reported revenues
of INR18.23 crore and net profit of INR0.78 crore as against
revenues of INR13.51 crore and net profit of INR0.30 crore in
previous year.
SATYAM COMPUTER: CBI Probe on Financial Fraud Almost Complete
-------------------------------------------------------------
The Hindu Business Line reports that the investigation into the
over INR7,136-crore Satyam Computer Services financial fraud by
the Central Bureau of Investigation is almost complete.
"By this month-end, we will be closing prosecution evidence in the
trial court in support of charge-sheets we have already filed,"
V.V. Lakshmi Narayana, Deputy Inspector-General, CBI, told
Business Line on Saturday.
According to the report, the senior CBI official said the cross-
examination of witnesses would follow after the closing of
prosecution evidence. After this, there would be arguments and
judgments.
Business Line notes that the investigating agency had filed three
charge-sheets in the case so far with a host of charges on the key
accused, B. Ramalinga Raju, founder and former chairman of
Hyderabad-based Satyam Computer, his brother and former Managing
Director, B. Rama Raju, and former Chief Financial Officer,
V. Srinivas, and nine others.
Business Line says the CBI had earlier sent requests to six
countries including Belgium, U.S., Singapore and British Virgin
Islands seeking details on fund-diversion by Mr. Raju. "We did
get some responses and the communication is on with these
countries. The final outcome will be known shortly," Mr. Lakshmi
Narayana said.
As reported in the Troubled Company Reporter-Asia Pacific, former
Satyam Chairman Ramalinga Raju resigned in January 2009 after
admitting he manipulated the company's accounts, including
inflating cash and bank balances, understating liabilities and
overstating debtors position. Mr. Raju's confession prompted
investigations into the company by different entities including
Andhra Pradesh state police, the U.S. Securities and Exchange
Commission and the Securities and Exchange Board of India. A
three-member board was subsequently created by the government,
which appointed KPMG and Deloitte Touche Tohmatsu to reevaluate
the software company's books. Several groups considered filing
class action suits against the company. Mr. Raju was later found
to have invented more than one quarter of Satyam's workforce and
used fictitious names to siphon INR200 million (US$4.1 million) a
month out of the company. Tech Mahindra Ltd. acquired control of
the company in April 2009.
Satyam reported a INR1.25 billion (US$28 million) loss for the 12
months ended March 31, 2010, and an INR81.8 billion loss for 2009.
About Satyam Computer
Headquartered in Secunderabad, India, Satyam Computer Services
Limited (PINK:SAYCY) -- http://www.mahindrasatyam.net/-- now
known as Mahindra Satyam, is an information, communications and
technology (ICT) Company providing business consulting,
information technology and communication services. The Company is
powered by a pool of information technology (IT) and consulting
professionals across enterprise solutions, client relationship
management, business intelligence, business process quality,
operations management, engineering solutions, digital convergence,
product lifecycle management, and infrastructure management
services. The Company is a part of the Mahindra Group, a global
industrial conglomerate in India. The Mahindra Group's interests
span financial services, automotive products, trade, retail and
logistics, information technology and infrastructure development.
Subsequent to July 10, 2009, Venturbay Consultants Private Limited
held 42.67% of the Company.
SATYAM COMPUTER: SC Cancels Bails Granted to Satyam Auditors
------------------------------------------------------------
The Wall Street Journal's livemint.com reports that the Supreme
Court on April 21, 2011, cancelled the bail granted to Price
Waterhouse (PW) partner Subramani Gopalakrishnan and Satyam
Computer Services Ltd's internal auditor V.S. Prabhakar Gupta,
directing them to surrender by April 30, 2011.
A bench comprising justices P. Sathasivam and B.S. Chauhan
cancelled their bail and directed the auditors to surrender within
the specified period, failing which the Central Bureau of
Investigation will take steps to arrest them, livemint.com
relates.
According to the report, the apex court, which had on April 18
reserved its order, said it was cancelling the bail of the accused
after looking into allegations in the chargesheet filed by the
CBI.
The agency, livemint.com says, had challenged the bail granted to
Gopalakrishnan and Gupta, both accused in the Satyam scam, by the
Andhra Pradesh high court last June.
CBI's plea was opposed by the counsel appearing for Gopalakrishnan
and Gupta, who submitted that the CBI had approached the apex
court 10 months after the order passed by the high court,
livemint.com notes.
They further submitted that the Supreme Court had given bail to
one of the PW auditors of Satyam -- Talluri Srinivas -- even as
the CBI is seeking to send Gopalakrishnan behind bars. However,
the CBI contended this, saying there was difference in the role of
Srinivas and Gopalkrishnan in the Satyam case.
Livemint.com says the Supreme Court on Oct. 26, 2010, had also
cancelled the bail granted to B. Ramalinga Raju, the founding
chairman of Satyam Computer and five others.
As reported in the Troubled Company Reporter-Asia Pacific, former
Satyam Chairman Ramalinga Raju resigned in January 2009 after
admitting he manipulated the company's accounts, including
inflating cash and bank balances, understating liabilities and
overstating debtors position. Mr. Raju's confession prompted
investigations into the company by different entities including
Andhra Pradesh state police, the U.S. Securities and Exchange
Commission and the Securities and Exchange Board of India. A
three-member board was subsequently created by the government,
which appointed KPMG and Deloitte Touche Tohmatsu to reevaluate
the software company's books. Several groups considered filing
class action suits against the company. Mr. Raju was later found
to have invented more than one quarter of Satyam's workforce and
used fictitious names to siphon INR200 million (US$4.1 million) a
month out of the company. Tech Mahindra Ltd. acquired control of
the company in April 2009.
Satyam reported a INR1.25 billion (US$28 million) loss for the 12
months ended March 31, 2010, and an INR81.8 billion loss for 2009.
About Satyam Computer
Headquartered in Secunderabad, India, Satyam Computer Services
Limited (PINK:SAYCY) -- http://www.mahindrasatyam.net/-- now
known as Mahindra Satyam, is an information, communications and
technology (ICT) Company providing business consulting,
information technology and communication services. The Company is
powered by a pool of information technology (IT) and consulting
professionals across enterprise solutions, client relationship
management, business intelligence, business process quality,
operations management, engineering solutions, digital convergence,
product lifecycle management, and infrastructure management
services. The Company is a part of the Mahindra Group, a global
industrial conglomerate in India. The Mahindra Group's interests
span financial services, automotive products, trade, retail and
logistics, information technology and infrastructure development.
Subsequent to July 10, 2009, Venturbay Consultants Private Limited
held 42.67% of the Company.
SEBACIC INDIA: ICRA Assigns 'LB+' Rating to INR43.2cr Term Loan
---------------------------------------------------------------
ICRA has assigned an 'LB+' rating to the INR43.20 crore term loans
of Sebacic India Limited. ICRA has also assigned an 'A4' rating
to the INR1.45 crore, short-term, non-fund based facilities of
SIL.
The ratings assigned are constrained by lack of track record of
operations as the company is still in the project phase,
sensitivity of project metrics and future cash flows to the
establishment of the company's products and its pricing power in
both international and domestic market and dependence of the
company on exports with limited local market. ICRA notes that the
availability of key raw material -- Castor oil and its pricing
which is dependent on seasonality and crop harvest is a concern,
however, the company's plan to stock Castor seeds in future due to
its non-perishable nature mitigates the risk to some extent. The
ratings are also constrained by the competition from Chinese
manufacturers, existing players as well as from established castor
oil players already in the process of entering the sebacic acid
manufacturing business and vulnerability of operations to changes
in environmental norms, though clearances have been obtained at
present.
The ratings however take comfort from the long experience of SIL's
promoters in the chemical industry in general and in manufacturing
of Sebacic acid in particular, the easy availability of castor
seeds with India being the major producer and Gujarat being the
major contributor, limited threat of substitution with major
substitutes being crude oil based which are viable only at low
prices. The ratings have also positively considered the financial
closure of the project and absence of any delays in execution at
present.
Incorporated in 2007, Sebacic India Limited is promoted by Pankaj
Natwarlal Pandya, Tushar Raojibhai Patel, Ashwin B. Patel and
Rajiv Parikh. The company was originally incorporated in the name
of Sebacic Manufacturing & Export India Limited and its name was
subsequently changed to Sebacic Acid Limited (SIL) w.e.f. January
2008. The company has been set up to manufacture Sebacic Acid
(manufactured from castor oil) with an installed capacity of 10000
MTPA. Apart from this, it also proposes to market 2-Octonal
(Installed Capacity 6000 MTPA), Glycerine (Installed Capacity 1500
MTPA), Mixed Fatty Acids (Installed Capacity 3500 MTPA), and
Sodium Sulphate (Installed Capacity 5500MTPA) which are produced
during the manufacturing process of Sebacic acid. SIL's
manufacturing facility is planned to be located at Village Umraya,
Taluka Padra, near Vadodara. SIL commenced construction work in
December 2010 and expects to commence commercial production from
December 2011.
SHINGOTE AGRO: ICRA Reaffirms INR0.5cr Bank Limits' 'LBB-' Rating
-----------------------------------------------------------------
ICRA has reaffirmed 'LBB-' rating to the INR0.5 crore (enhanced
from INR0.4 crore) fund based bank limits of Shingote Agro Foods
Private Limited. The long term rating carries stable outlook.
ICRA has also reaffirmed 'A4' rating to the INR20 crore (enhanced
from INR18 crore) fund based and INR4.5 crore (enhanced from
INR2.3 crore) non fund based bank limits of Shifco.
The rating reaffirmation takes into account the long experience of
promoters in the agro foods industry and its well diversified
client base. ICRA also favorably notes that since Shifco's
business majorly deals with non-perishable goods, the inventory
risks are mitigated to a large extent. Further, majority of
company's business (except for few big buyers) is backed by
LCs/BGs thus mitigating credit risk to some extent. The ratings
however are constrained by Shifco's relatively small size of
operations and stretched financial risk profile characterized by
low margins, high working capital intensity, elevated gearing
levels and tight liquidity position.
Shingote Agro Foods Private Limited's roots extend back to 1949
when founder Mr. K. B. Shingote first started exporting Indian
fresh fruits. Over the years, export operations have expanded from
trading of fresh fruits to trading of agro commodities and process
foods which are non-perishable in nature. Currently, the company
has two divisions namely Agro commodities and Fruits division. The
key commodities include spices, cereals & pulses, rice, etc.,
while for fruits, Shingote exports processed mango pulp.
Currently, the company is managed by Mr. Raju Shingote (Son-in-law
of Mr. K. B. Shingote) and Mr. Padmaja Shingote (daughter of Mr.
K. B. Shingote).
Recent results:
For the nine months ended December 2010, the company reported a
Net Profit of INR0.2 crore on an operating income of INR32.2
crore.
SRI MATA: ICRA Assigns 'LBB-' Rating to INR47.37cr Bank Facilities
------------------------------------------------------------------
ICRA has assigned a long term rating of 'LBB-' to the INR47.37
crore fund based facilities of Sri Mata Infratech Limited. The
long term rating carries a stable outlook. Further, ICRA has
assigned a rating of 'LBB-(Stable)/A4' to the INR2.63 crore
proposed bank facilities of SMIL.
The assigned rating takes into account the long standing promoters
experience in cement industry & cement plant commissioning and low
funding risk as the term loan is already tied up. However, the
ratings are constrained by high project implementation risks;
modest operating size; relatively unfavorable location of the
plant due to its presence in the Nalgonda cluster in Andhra
Pradesh; and vulnerability of operating margins to the unfavorable
movements in the availability and prices of coal. Although the
debt funded capex may put pressure on the term loan servicing in
the initial years, improved capacity utilization levels coupled
with increase in capacity from 200 TPD to 400 TPD should help the
company in fulfilling its repayment obligations in the near term.
Sri Mata Infratech Limited was incorporated in 1984 as Viswam
cements to manufacture cement. The cement plant is located at
Mellacheruvu, Nalgonda, Andhra Pradesh. SMIL manufactures and
markets Ordinary Portland Cement under the brand name of Viswam
Gold in Andhra Pradesh. The current installed capacity of the
plant is 400 TPD and SMIL is in the process of expanding the
capacity to 1000 TPD.
SMIL's revenue for FY10 was INR7.74 crore, which translated to a
net profit of INR1.60 crore as compared with revenue of INR12.83
crore and net profit of INR1.77 crore in FY09.
THIRUPATHY BRIGHT: ICRA Assigns 'LBB' Rating to INR1cr Term Loan
----------------------------------------------------------------
ICRA has assigned 'LBB' rating to the INR1.00 crore proposed term
loan facilities and INR5.00 crore long term fund based bank
facilities of Thirupathy Bright Industries. The outlook on the
long term rating is stable. ICRA has also assigned A4 rating to
the INR1.00 crore non-fund based bank facility (sublimit of cash
credit) of the firm.
The ratings reflect the small scale of operations of the firm
restricting economies of scale and financial flexibility and the
highly geared capital structure. The rating also takes into
account the thin margin and the vulnerability of margins to raw
material price movements, high competition from established
players and working capital intensive nature of business. However,
the ratings also factor in experience of the promoter and the
support of the Beekay group.
Thirupathy Bright Industries was started in 1996 as a partnership
firm. There are currently three partners with the ownership
pattern of 2:1:1. TBI is part of the Beekay Group, a leading
manufacturer of high quality steel and a wide range of rolled
products. TBI has two units, one in Nulambur and another in
Ambattur in Tamil Nadu.
Recent Results
For year ended March 31, 2010, TBI reported net profit of INR0.8
crore on operating income of INR32.8 crore.
VIDYA BAL: ICRA Assigns 'LBB+' Rating to INR25.09cr Term Loans
--------------------------------------------------------------
ICRA has assigned a long term rating of 'LBB+' to INR25.09 crore
term loans and INR4.91 crore fund based limits of Vidya Bal Mandli
Society. The long term rating carries a Stable Outlook.
The assigned rating is constrained by the society's modest scale
of operations, its limited reach on account of single campus, low
occupancy levels in some of the recently started courses and
increase in gearing levels of VBMS to 1.02 times in FY 2010. The
rating also takes into account increasing competition in the
private education sector in India and highly regulated nature of
the Indian education industry. The rating, however, draws comfort
from presence of the society in diverse set of professional
courses, experienced faculty profile and satisfactory reputation
enjoyed by VCE which is its main revenue driver as reflected in
its healthy occupancy levels since inception. The rating also
takes into account the strong financial profile of VBMS as
characterized by steady growth in its operating income, healthy
profitability, adequate debt protection metrics and its
comfortable liquidity position as marked by low working capital
utilizations and positive cash flows from operations. Going
forward, the rating would remain sensitive to the ability of the
society to manage the costs and successfully establish the
infrastructure required to position itself as a centre of
educational excellence and meet competitive pressures. Though the
revenues of the trust are expected to increase with the addition
of more batches in MCA course offered by VICT (which in the first
year of its operation) as well as BFAD course offered by VIFT
(which in its third year of operation), however, future growth
would be dependent on the trusts' ability to increase occupancy
levels for courses like PGDM, MBA (VSB), BFAD and Vidya Global
School. Though, ICRA expects the gearing of the company to
decline in the medium term because of adequate internal accruals,
however, any debt funded capex plans to meet infrastructure
requirements can push up funding requirements.
Incorporated in 1998, Vidya Bal Mandli Society is a registered
society which is presently running six institutes/ colleges
offering diverse range of under graduate, graduate and
postgraduate programmes offering degrees in B.Tech, B.FAD, B.Ed.,
MBA, MCA and diploma courses like PGDM, DFAD, PG Diploma in
Garment Export Merchandising Management and CIDT having a total of
1880 seats (annual intake in FY 2009-10). VBMS is also running an
IB (International Baccalaureate) candidate Global school named
Vidya Global School and a Finishing School. VBMS is running all
its institutions from its 75 acres campus at Baghpat Road, Meerut.
Recent Results:
As per the audited results, VBMS reported a net profit of INR8.69
crore on an operating income of INR18.56 crore for the year ended
March 31, 2010 and a net profit of
INR 11.80 crore on an operating income of INR11.08 crore for the
year ended March 31, 2009.
=================
I N D O N E S I A
=================
BANK CIMB: S&P Upgrades Raises Counterparty Credit Rating to 'BB+'
------------------------------------------------------------------
Standard & Poor's Ratings Services said it had taken the following
rating actions on three Indonesian banks:
To From
--- ----
PT Bank Mandiri (Persero)
Counterparty credit rating BB+/Positive/B BB/Stable/B
PT Bank CIMB Niaga Tbk. (Unsolicited Ratings)
Counterparty credit rating BB+/Positive/B BB/Stable/B
PT Bank Danamon Indonesia Tbk.
Counterparty credit rating BB/Stable/B BB-/Stable/B
At the same time, Standard & Poor's affirmed the 'BB-/B' ratings
on PT Bank Negara Indonesia Tbk. The outlook is stable.
"We upgraded the banks because of two key reasons: we raised the
sovereign ratings on Indonesia; and a sustained improvement in the
operating environment in the country," S&P said.
The operating environment in Indonesia has gradually been
improving, supported by macroeconomic and political stability.
Indonesia's economic prospects are strong with GDP growth likely
to average more than 6% in the medium term, even without broad
economic reforms. "We expect GDP per capita to increase to about
US$5,000 by 2013 from US$1,093 in 2003," S&P noted.
The business environment in Indonesia is also improving. This
should sustain higher consumption and private investment demand.
Companies have larger retained earnings to finance investments,
thus reducing the pressure on corporate leverage.
Indonesian banks would have opportunities for profitable fund-
based and fee-based business without a significant, if any,
deterioration in their loan quality. But the operating
environment in Indonesia continues to have several impediments.
These include the government's limited policy flexibility, weak
corporate governance, infrastructure bottlenecks, corruption,
labor market rigidities, and a legal environment that is not
conducive to the enforcement of credit rights.
Standard & Poor's does not rate any Indonesian bank above the
sovereign foreign currency rating because of the direct and
indirect influence that the sovereign, if in distress, would have
on the bank's operations, including the bank's ability to service
its foreign currency obligations.
PT Bank Mandiri (Persero)
"We raised the rating on Bank Mandiri to reflect the improvement
in the operating environment, which improves our view on the
bank's credit risk and earnings stability, its stronger
capitalization, the sustained increase in its earnings, and higher
government support in view of the sovereign's strengthened credit
fundamentals. We now believe that Bank Mandiri has high systemic
importance. It is therefore eligible for two notches of
government support above its stand-alone credit profile of 'bb';
only one notch of support is currently factored into the rating.
The bank's recent Indonesian rupiah 11.7 trillion rights issue
contributed to the stronger capitalization," S&P stated.
"The positive outlook on Bank Mandiri reflects that on Indonesia.
We could raise the rating if the foreign currency sovereign rating
on Indonesia (BB+/Positive/B; ASEAN scale axBBB+/axA-2) is raised
and the bank maintains its credit profile. We may lower the
rating if the foreign currency sovereign rating on Indonesia is
lowered or the bank's asset quality deteriorates significantly
with a commensurate affect on its earnings," S&P continued.
PT Bank Cimb Niaga TBK
S&P stated, "We upgraded CIMB Niaga to reflect the improvement in
the operating environment, which improves our view on the bank's
credit risk and earnings stability and our expectations of higher
support from CIMB group. We view the bank as strategically
important for CIMB group, which is dominated by CIMB Bank Bhd.
(BBB+/Stable/A-2). CIMB Niaga is now eligible for three notches
of group support, from two notches, because we believe the bank's
financial importance to the group is increasing. CIMB Niaga now
contributes 24% of the group's income and 18% of assets.
Currently, the rating factors in only two out of the three notches
of support. The rating also reflects the bank's market position
as the fifth-largest bank in Indonesia and strengthening financial
profile."
"The positive outlook on CIMB Niaga reflects that on the sovereign
and our expectation that the bank will maintain its financial
profile and remain "strategically important" to CIMB group. We
could upgrade CIMB Niaga if the sovereign foreign currency rating
on Indonesia is raised and the bank's credit profile does not
deteriorate. We could downgrade CIMB Niaga if the foreign
currency sovereign rating on Indonesia is lowered or the bank's
strategic importance to CIMB group diminishes. We could also lower
the rating if the bank's asset quality, profitability, or
liquidity significantly deteriorates," S&P elaborated.
PT Bank Danamon Indonesia TBK
"We raised the ratings on Bank Danamon to reflect the improvement
in the operating environment, which improves our view on the
bank's credit risk and earnings stability. The bank's funding
profile constrains the rating," S&P stated.
"The stable outlook reflects our expectation that Bank Danamon
will remain largely focused on its niche market and maintain its
financial profile. We may raise the ratings if the bank improves
its funding and liquidity profile and asset quality, while
maintaining sound capitalization and profitability. We could
lower the ratings if the bank's funding and liquidity profile,
capitalization, or asset quality significantly deteriorates,"
according to S&P.
BANK DANAMON: S&P Raises Counterparty Credit Rating to 'BB'
-----------------------------------------------------------
Standard & Poor's Ratings Services said it had taken the following
rating actions on three Indonesian banks:
To From
--- ----
PT Bank Mandiri (Persero)
Counterparty credit rating BB+/Positive/B BB/Stable/B
PT Bank CIMB Niaga Tbk. (Unsolicited Ratings)
Counterparty credit rating BB+/Positive/B BB/Stable/B
PT Bank Danamon Indonesia Tbk.
Counterparty credit rating BB/Stable/B BB-/Stable/B
At the same time, Standard & Poor's affirmed the 'BB-/B' ratings
on PT Bank Negara Indonesia Tbk. The outlook is stable.
"We upgraded the banks because of two key reasons: we raised the
sovereign ratings on Indonesia; and a sustained improvement in the
operating environment in the country," S&P said.
The operating environment in Indonesia has gradually been
improving, supported by macroeconomic and political stability.
Indonesia's economic prospects are strong with GDP growth likely
to average more than 6% in the medium term, even without broad
economic reforms. "We expect GDP per capita to increase to about
US$5,000 by 2013 from US$1,093 in 2003," S&P noted.
The business environment in Indonesia is also improving. This
should sustain higher consumption and private investment demand.
Companies have larger retained earnings to finance investments,
thus reducing the pressure on corporate leverage.
Indonesian banks would have opportunities for profitable fund-
based and fee-based business without a significant, if any,
deterioration in their loan quality. But the operating
environment in Indonesia continues to have several impediments.
These include the government's limited policy flexibility, weak
corporate governance, infrastructure bottlenecks, corruption,
labor market rigidities, and a legal environment that is not
conducive to the enforcement of credit rights.
Standard & Poor's does not rate any Indonesian bank above the
sovereign foreign currency rating because of the direct and
indirect influence that the sovereign, if in distress, would have
on the bank's operations, including the bank's ability to service
its foreign currency obligations.
PT Bank Mandiri (Persero)
"We raised the rating on Bank Mandiri to reflect the improvement
in the operating environment, which improves our view on the
bank's credit risk and earnings stability, its stronger
capitalization, the sustained increase in its earnings, and higher
government support in view of the sovereign's strengthened credit
fundamentals. We now believe that Bank Mandiri has high systemic
importance. It is therefore eligible for two notches of
government support above its stand-alone credit profile of 'bb';
only one notch of support is currently factored into the rating.
The bank's recent Indonesian rupiah 11.7 trillion rights issue
contributed to the stronger capitalization," S&P stated.
"The positive outlook on Bank Mandiri reflects that on Indonesia.
We could raise the rating if the foreign currency sovereign rating
on Indonesia (BB+/Positive/B; ASEAN scale axBBB+/axA-2) is raised
and the bank maintains its credit profile. We may lower the
rating if the foreign currency sovereign rating on Indonesia is
lowered or the bank's asset quality deteriorates significantly
with a commensurate affect on its earnings," S&P continued.
PT Bank Cimb Niaga TBK
S&P stated, "We upgraded CIMB Niaga to reflect the improvement in
the operating environment, which improves our view on the bank's
credit risk and earnings stability and our expectations of higher
support from CIMB group. We view the bank as strategically
important for CIMB group, which is dominated by CIMB Bank Bhd.
(BBB+/Stable/A-2). CIMB Niaga is now eligible for three notches
of group support, from two notches, because we believe the bank's
financial importance to the group is increasing. CIMB Niaga now
contributes 24% of the group's income and 18% of assets.
Currently, the rating factors in only two out of the three notches
of support. The rating also reflects the bank's market position
as the fifth-largest bank in Indonesia and strengthening financial
profile."
"The positive outlook on CIMB Niaga reflects that on the sovereign
and our expectation that the bank will maintain its financial
profile and remain "strategically important" to CIMB group. We
could upgrade CIMB Niaga if the sovereign foreign currency rating
on Indonesia is raised and the bank's credit profile does not
deteriorate. We could downgrade CIMB Niaga if the foreign
currency sovereign rating on Indonesia is lowered or the bank's
strategic importance to CIMB group diminishes. We could also lower
the rating if the bank's asset quality, profitability, or
liquidity significantly deteriorates," S&P elaborated.
PT Bank Danamon Indonesia TBK
"We raised the ratings on Bank Danamon to reflect the improvement
in the operating environment, which improves our view on the
bank's credit risk and earnings stability. The bank's funding
profile constrains the rating," S&P stated.
"The stable outlook reflects our expectation that Bank Danamon
will remain largely focused on its niche market and maintain its
financial profile. We may raise the ratings if the bank improves
its funding and liquidity profile and asset quality, while
maintaining sound capitalization and profitability. We could
lower the ratings if the bank's funding and liquidity profile,
capitalization, or asset quality significantly deteriorates,"
according to S&P.
BANK MANDIRI: S&P Upgrades Counterparty Credit Rating to 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services said it had taken the following
rating actions on three Indonesian banks:
To From
PT Bank Mandiri (Persero)
Counterparty credit rating BB+/Positive/B BB/Stable/B
PT Bank CIMB Niaga Tbk. (Unsolicited Ratings)
Counterparty credit rating BB+/Positive/B BB/Stable/B
PT Bank Danamon Indonesia Tbk.
Counterparty credit rating BB/Stable/B BB-/Stable/B
At the same time, Standard & Poor's affirmed the 'BB-/B' ratings
on PT Bank Negara Indonesia Tbk. The outlook is stable.
"We upgraded the banks because of two key reasons: we raised the
sovereign ratings on Indonesia; and a sustained improvement in the
operating environment in the country," S&P said.
The operating environment in Indonesia has gradually been
improving, supported by macroeconomic and political stability.
Indonesia's economic prospects are strong with GDP growth likely
to average more than 6% in the medium term, even without broad
economic reforms. "We expect GDP per capita to increase to about
US$5,000 by 2013 from US$1,093 in 2003," S&P noted.
The business environment in Indonesia is also improving. This
should sustain higher consumption and private investment demand.
Companies have larger retained earnings to finance investments,
thus reducing the pressure on corporate leverage.
Indonesian banks would have opportunities for profitable fund-
based and fee-based business without a significant, if any,
deterioration in their loan quality. But the operating
environment in Indonesia continues to have several impediments.
These include the government's limited policy flexibility, weak
corporate governance, infrastructure bottlenecks, corruption,
labor market rigidities, and a legal environment that is not
conducive to the enforcement of credit rights.
Standard & Poor's does not rate any Indonesian bank above the
sovereign foreign currency rating because of the direct and
indirect influence that the sovereign, if in distress, would have
on the bank's operations, including the bank's ability to service
its foreign currency obligations.
PT Bank Mandiri (Persero)
"We raised the rating on Bank Mandiri to reflect the improvement
in the operating environment, which improves our view on the
bank's credit risk and earnings stability, its stronger
capitalization, the sustained increase in its earnings, and higher
government support in view of the sovereign's strengthened credit
fundamentals. We now believe that Bank Mandiri has high systemic
importance. It is therefore eligible for two notches of
government support above its stand-alone credit profile of 'bb';
only one notch of support is currently factored into the rating.
The bank's recent Indonesian rupiah 11.7 trillion rights issue
contributed to the stronger capitalization," S&P stated.
"The positive outlook on Bank Mandiri reflects that on Indonesia.
We could raise the rating if the foreign currency sovereign rating
on Indonesia (BB+/Positive/B; ASEAN scale axBBB+/axA-2) is raised
and the bank maintains its credit profile. We may lower the
rating if the foreign currency sovereign rating on Indonesia is
lowered or the bank's asset quality deteriorates significantly
with a commensurate affect on its earnings," S&P continued.
PT Bank Cimb Niaga TBK
S&P stated, "We upgraded CIMB Niaga to reflect the improvement in
the operating environment, which improves our view on the bank's
credit risk and earnings stability and our expectations of higher
support from CIMB group. We view the bank as strategically
important for CIMB group, which is dominated by CIMB Bank Bhd.
(BBB+/Stable/A-2). CIMB Niaga is now eligible for three notches
of group support, from two notches, because we believe the bank's
financial importance to the group is increasing. CIMB Niaga now
contributes 24% of the group's income and 18% of assets.
Currently, the rating factors in only two out of the three notches
of support. The rating also reflects the bank's market position
as the fifth-largest bank in Indonesia and strengthening financial
profile."
"The positive outlook on CIMB Niaga reflects that on the sovereign
and our expectation that the bank will maintain its financial
profile and remain "strategically important" to CIMB group. We
could upgrade CIMB Niaga if the sovereign foreign currency rating
on Indonesia is raised and the bank's credit profile does not
deteriorate. We could downgrade CIMB Niaga if the foreign
currency sovereign rating on Indonesia is lowered or the bank's
strategic importance to CIMB group diminishes. We could also lower
the rating if the bank's asset quality, profitability, or
liquidity significantly deteriorates," S&P elaborated.
PT Bank Danamon Indonesia TBK
"We raised the ratings on Bank Danamon to reflect the improvement
in the operating environment, which improves our view on the
bank's credit risk and earnings stability. The bank's funding
profile constrains the rating," S&P stated.
"The stable outlook reflects our expectation that Bank Danamon
will remain largely focused on its niche market and maintain its
financial profile. We may raise the ratings if the bank improves
its funding and liquidity profile and asset quality, while
maintaining sound capitalization and profitability. We could
lower the ratings if the bank's funding and liquidity profile,
capitalization, or asset quality significantly deteriorates,"
according to S&P.
GARUDA INDONESIA: Prepares Plan for Quasi Reorganization
--------------------------------------------------------
Antara News, citing PT Garuda Indonesia Tbk's acting finance
director, says the company is preparing a number of steps related
to a plan for quasi reorganization to make its financial statement
healthy.
"The plan for quasi reorganization has been discussed at the
company's internal meeting," the news agency quotes Garuda acting
finance director Elisa Lumbantoruan as saying.
Antara News relates that Ms. Lumbantoruan said the plan for quasi
reorganization came after the company had suffered an accumulative
loss of around IDR6.8 trillion.
Quasi reorganization, according to Antara News, is an accounting
procedure requiring a company to restructure its equities by
scrapping deficit and reevaluating its entire assets and
liabilities. This method is believed to be able to scrap
accumulative losses recorded in the company's financial statement
by eliminating deficit balance by way of the difference between
assets and liabilities reevaluated.
According to the report, Ms. Lumbantoruan said the plan for quasi
reorganization has been discussed with the company's board of
commissioners. However, the plan had not been submitted to the
State Enterprises Minister as the proxy of shareholders.
"We have not yet submitted it (to the ministry). Under the
standing procedure, it must first be discussed at an extraordinary
shareholders meeting scheduled for May or June 2011," Ms.
Lumbantoruan said.
Garuda saw its profit plunge 49% to IDR515.521 billion in 2010
from around IDR1.018 trillion the year before. The company said
the decline in last year's profit was the result of its major
business expansion including the purchase of 24 planes.
Garuda, which received IDR1 trillion from the government in 2006
to help it keep flying, has been in debt restructuring talks since
2005. The Troubled Company Reporter-Asia Pacific reported on
Aug. 11, 2010, that the carrier completed the restructuring of
US$76 million of debts to state oil and gas company PT Pertamina.
Garuda had also completed a debt restructuring negotiation with
its biggest creditor, the state lender Bank Mandiri. In
January 2010, Bloomberg News said, the airline won bondholder
permission to restructure US$122 million of floating-rate notes.
The TCR-AP, citing The Financial Times, reported on Dec. 20, 2010,
that Garuda signed a deal with dozens of lenders to restructure
nearly US$500 million in debt. The FT said that the agreement,
inked in December 2010, in London after five years of tortuous
negotiations with the European Credit Agency and more than 20
commercial creditors, covers debts dating back 15 years.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
DAVOMAS ABADI: S&P Affirms 'CCC+' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC+' corporate
credit rating on PT Davomas Abadi Tbk. and removed it from
CreditWatch, where it had been placed with positive implications.
The outlook is negative. "We have also removed the 'CCC+' rating
on Davomas' senior secured notes from CreditWatch with positive
implications," S&P said.
The delay in Davomas' acquisition by PT Uniflora Prima (B-
/Stable/--) means the change-of-control clause in Davomas'
indenture will not be triggered. Under this clause, Davomas must
offer a change-of-control payment in cash equal to 101% of the
aggregate principal amount of the notes repurchased plus accrued
and unpaid interest.
Davomas will rely on its own cash flows to refund the outstanding
notes as the transaction with Uniflora is postponed, instead of
relying on an inter-company loan that would have been
unconditionally guaranteed by higher-rated Uniflora.
"In our opinion, there has been no structural improvement in
Davomas' business risk profile, despite an improved industry
environment," said Standard & Poor's credit analyst Xavier Jean.
"We believe the company still faces significant customer, product
and single-site concentration risks. We also believe the
emergence of Uniflora as a competitor in the Indonesian cocoa
processing industry is likely to weigh on Davomas' domestic market
position."
"We believe Davomas will be more vulnerable to a slow down in the
industry or to less favorable pricing conditions in this new
competitive environment," Mr. Jean noted.
The negative outlook on the rating reflects Standard & Poor's
expectation that Davomas' operating performance will be vulnerable
to volatile industry conditions. "In addition, we expect the
company's financial risk profile to remain highly leveraged and
its financial flexibility limited," S&P noted.
"The likelihood that we will raise the rating in the near term is
low. We are likely to lower the rating if Davomas is unable to
(1) attain adequate liquidity to meet its future coupon payments,
or (2) improve its operating performance or manage its working
capital requirements, resulting in further depletion of its cash
balance," Mr. Jean said.
=========
J A P A N
=========
ALL NIPPON AIR: Moody's Changes Rating Outlook to Stable
--------------------------------------------------------
Moody's Japan K.K. has changed to stable from positive its outlook
for the Ba2 senior unsecured rating of All Nippon Airways Co.,
Ltd.
"This change reflects the operating uncertainty facing ANA in the
near term as it deals with the aftermath of the devastating
earthquake and tsunami", says Mina Sawamura, a Moody's
AVP/Analyst.
"We believe that ANA is likely to experience a downturn in
passenger demand in the short term which, combined with the
escalating price of jet fuel, could also negatively affect
passenger travel" Sawamura says. "At the same time, Moody's
acknowledges the airline's ability to pass on part of its
increased costs onto passengers".
"These uncertainties are likely to delay the previously-assumed
improvements in ANA's financial metrics", Sawamura adds.
The stable outlook assumes that the operating challenges faced by
ANA are short-term in nature and that the airline's underlying
performance will rebound in the second-half of fiscal year ending
3/31/2012. Failure to achieve such turnaround could lead to
negative pressure in the airline's rating/outlook.
The Ba2 rating continues to reflect ANA's solid domestic market
share, which has increased after JAL -- a domestic rival -- filed
for bankruptcy last year. In addition, ANA's cost structure and
operating efficiency have improved in recent years due to cost
cuts and fleet reprogramming in the run-up to the expansion of
Tokyo's two major international airports in 2010.
The rating also incorporates the Japanese market's limited degree
of competition and protected nature, and the expectation of
support from the government, based on the high tax revenues and
duties it receives from ANA.
Moreover, Moody's Ba2 senior unsecured rating on ANA reflects the
company's stable relationships with its main creditor banks as
well as its important economic and policy role. This situation
results in the company's rating being two notches higher than it
would otherwise be.
Accordingly, the senior unsecured rating of Ba2 considers the
combined effect of 1) a two-notch uplift from the support system,
which is one of the regional rating factors in Japan, as stated in
the above paragraph, and 2) one-notch down due to the presence of
a high level of secured debt.
Moody's sees limited upward momentum in the rating in the near
term. Over time, positive rating movement could evolve if ANA's
earnings and cash flow improve as a result of sustainable
improvement in the operating performance, combined with further
rationalization and cost cuts, and passenger growth due to airport
expansions. Financial metrics that Moody's would consider for an
upgrade include adjusted debt/capitalization approaching 70% and
adjusted debt/EBITDA falling below 5.0x.
On the other hand, the rating could come under downward pressure
if demand did not recover in a timely manner, leading to
deterioration in ANA's performance. This could be exhibited by
EBITDA margin falling below 12% over 18-24 months, adjusted
debt/capitalization increasing to around 80%, and Debt/EBITDA
increasing above 7.0x on a sustained basis.
The principal methodology used in rating ANA was Moody's "Global
Passenger Airlines" published on September 30, 2010, and available
on www.moodys.co.jp.
Headquartered in Tokyo, All Nippon Airways Co., Ltd., is Japan's
second-largest airline by revenue, with domestic and international
passenger and cargo and mail operations, and travel services. Its
total revenue for FYE3/2010 was JPY 1.23 trillion.
TOKYO ELECTRIC: Mulls Cutting Workers' Annual Salaries by 20%
-------------------------------------------------------------
The Japan Times reports that Tokyo Electric Power Co. is
considering cutting its employees' annual salaries by around
20% as part of restructuring efforts to raise funds for
compensation over the Fukushima No. 1 nuclear emergency, company
sources said Thursday.
The Japan Times relates company sources said the company is
currently in negotiations with its labor union to reach an
agreement by the end of this month.
According to the report, sources said the proposal targets around
33,000 union members and does not include a workforce cut. Tepco
is also considering reducing remuneration for company executives,
sources told The Japan Times.
Meanwhile, The Japan Times reports that the utility is mulling
selling off its assets to secure funds to pay compensation for
people affected by the nuclear crisis, triggered by the March 11
earthquake and tsunami.
The Japan Times relates the sources said Tepco will try to acquire
hundreds of billions of yen by selling securities it holds,
including KDDI Corp. stocks and real estate.
About TEPCO
Tokyo Electric Power Company (TEPCO) is the largest electric
power company in Japan and the largest privately owned electric
utility in the world. TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.
Bloomberg News said Tepco's market value had plunged 86% since the
March 11, 2011, earthquake and tsunami damaged the nuclear plant's
cooling equipment, resulting in a partial meltdown. It faces
claims of as much as JPY11 trillion if the crisis lasts two years,
and that could lead to nationalization, according to Bank of
America Merrill Lynch, Bloomberg related.
The company has JPY5 trillion in debt, making it the fourth-
biggest borrower among members of the Nikkei 225 stock average,
according to data compiled by Bloomberg.
TOKYO ELECTRIC: 3 Banks to Book Impairment Losses on Tepco Shares
-----------------------------------------------------------------
Kyodo News reports that three major Japanese banking groups are
expected to book a combined asset impairment loss of
JPY160 billion on their holdings of Tokyo Electric Power Co shares
in their group earnings reports for fiscal 2010 due to sharp falls
in the utility's stock following the nuclear crisis at its
Fukushima Daiichi nuclear power plant.
Kyodo News relates that Sumitomo Mitsui Financial Group Inc. is
expected to report an impairment loss of JPY80 billion, Mizuho
Financial Group Inc. plans to book a loss of JPY50 billion, and
Mitsubishi UFJ Financial Group Inc. is expected to report a loss
of JPY30 billion.
All the banking groups are expected to report in mid-May their
financial reports for the fiscal year ended March 31, according to
Kyodo News.
Kyodo News discloses that the share price of TEPCO was JPY2,036 on
Sept. 30 last year when the banking groups closed their half-year
earnings reports.
Kyodo says the utility's stock fell to JPY466 at the end of fiscal
2010 on March 31, 2011, from JPY2,153 on March 10, 2010, the day
before the magnitude-9.0 quake and ensuing tsunami crippled the
Fukushima Daiichi complex.
About TEPCO
Tokyo Electric Power Company (TEPCO) is the largest electric
power company in Japan and the largest privately owned electric
utility in the world. TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.
Bloomberg News said Tepco's market value had plunged 86% since the
March 11, 2011, earthquake and tsunami damaged the nuclear plant's
cooling equipment, resulting in a partial meltdown. It faces
claims of as much as JPY11 trillion if the crisis lasts two years,
and that could lead to nationalization, according to Bank of
America Merrill Lynch, Bloomberg related.
The company has JPY5 trillion in debt, making it the fourth-
biggest borrower among members of the Nikkei 225 stock average,
according to data compiled by Bloomberg.
===============
M A L A Y S I A
===============
PUBLIC BANK: Fitch Affirms, Withdraws 'B/C' Individual Rating
-------------------------------------------------------------
Fitch Ratings has affirmed Malaysia-based Public Bank Berhad's
Individual Rating at 'B/C' and Support Rating at '2' and
simultaneously withdrawn them.
The ratings were withdrawn because the issuer is no longer
considered by Fitch to be central to the agency's coverage.
The Individual Rating reflects Public Bank's reputable and
profitable franchise, ability to maintain above average asset
quality despite its strong loan growth, and robust earnings buffer
against losses, balanced against its thin core capital.
The Support Rating reflects the high probability of government
support for the bank in the unlikely event of need, given its
status as the third-largest of nine local bank groups by assets
and the government's record of supporting distressed financial
institutions.
Established in 1966 and listed a year later, Public Bank was
founded by banker Tan Sri Dato' Sri Dr Teh Hong Piow, who owns a
24.08% stake in the bank. Public Bank has a strong following in
the consumer and SME businesses, particularly in Malaysia's ethnic
Chinese community.
====================
N E W Z E A L A N D
====================
WESTERN PACIFIC: Cancels All Insurance Contracts
------------------------------------------------
Marta Steeman at The Press reports that the liquidators of Western
Pacific Insurance have cancelled all its insurance contracts.
The Press says Christchurch broker Chris Benson said he had been
notified late Thursday afternoon by the liquidators that they were
cancelling all the insurance contracts.
According to the Press, Mr. Benson said the liquidators had told
him they could not sell the assets or policies of the company, or
get anyone to take them over, so they were cancelled with
immediate effect.
Mr. Benson said policyholders of Western Pacific "have been cast
to the wind, left bereft of cover," the Press adds.
As reported in the Troubled Company Reporter-Asia Pacific on
April 6, 2011, The National Business Review said David Ruscoe and
Simon Thorn, of Grant Thornton New Zealand, have been appointed
liquidators to Western Pacific Insurance, a small Queenstown-based
insurance company with around 150 claims relating to earthquakes
in Christchurch. NBR related that Mr. Ruscoe and Mr. Thorn were
appointed liquidators on April 1, 2011, after directors of Western
Pacific became concerned about the solvency of their company.
Western Pacific owes creditors an initial estimated NZ$3.8 million
and has NZ$1.9 million of unsettled insurance claims, according to
first liquidators report.
The liquidators called for creditors to lodge claims by April 28.
Western Pacific is a New Zealand-owned and operated insurance
company. It was established in April 2005, and is principally a
broker brand that offers a broad range of commercial, domestic and
specialty products as well as programmes for affinity groups,
underwriting agents and preferred brokers. It has about 7,000
policy holders in New Zealand.
=============
V I E T N A M
=============
* Moody's Negative Outlook on B1 Rating Reflects BOP Concerns
-------------------------------------------------------------
Moody's Investors Service says its negative outlook for Vietnam's
B1 rating reflects concerns about the sustainability of the
country's balance of payments despite the government's recent
macro-stabilization measures.
Moody's annual sovereign report on Vietnam provides an updated
analysis on the rating and does not constitute a rating action.
The report notes that Vietnam's B1 foreign currency and local
currency ratings were derived from a methodological assessment of
low economic resilience and low financial robustness. Strong
growth over the past decade has led to large developmental gains,
but has not been matched by improvements in institutional quality,
in comparison to the country's rating peers.
Vietnam's fiscal and debt metrics are still well-positioned
compared to those of its rating peers, but event risk has risen as
a result of inconsistent macroeconomic policies that have not
sufficiently addressed overheating pressures.
Moreover, the deterioration in Vietnam's external payments
position, coupled with an unfavorable outlook for contingent
liabilities, is pressuring the rating downward.
A change in the rating outlook to stable would depend largely on
the success of the government's recent tightening measures in
arresting inflationary pressures and containing exchange rate
volatility. However, if the already low level of foreign exchange
reserves were to erode further, the rating would be subject to
additional downward pressure.
The principal methodology used in this rating was Moody's
Sovereign Bond Methodology published in September 2008.
===============
X X X X X X X X
===============
* S&P's 2011 Global Corporate Defaults Now Total 13
---------------------------------------------------
One Russian bank and two U.S.-based utilities defaulted last week,
raising the 2011 global corporate default tally to 13, said an
article published Friday by Standard & Poor's Global Fixed Income
Research, titled "Global Corporate Default Update (April 15 - 21,
2011) (Premium)."
"Eight of this year's defaulters are based in the U.S., two are
based in New Zealand, one in Canada, one in the Czech Republic,
and one in Russia," said Diane Vazza, head of Standard & Poor's
Global Fixed Income Research. "By comparison, 32 global corporate
issuers had defaulted by this time in 2010."
Of these defaulters, 23 were from the U.S., one was from Europe,
two issuers were from the emerging markets, and six were in the
other developed region (Australia, Canada, Japan, and New
Zealand).
S&P noted that it revised the 2011 figures as part of our
quarterly data reconciliation process to account for two issuers
that had ratings withdrawn several months prior to default. Also,
it added two New Zealand-based issuers that defaulted earlier this
month -- one as a result of regulatory action, and the other
because of a distressed exchange.
"Five of this year's defaults were due to missed interest or
principal payments, and another five were due to distressed
exchange offers -- both among the top reasons for default in
2010," said Ms. Vazza. Of the remaining three, one issuer
defaulted after it filed for bankruptcy, another had its banking
license revoked by its country's central bank, and the third was
forced into liquidation as a result of regulatory action.
Of the defaults in 2010, 28 defaults resulted from missed interest
or principal payments, 25 defaults resulted from Chapter 11 and
foreign bankruptcy filings, 23 from distressed exchanges, three
from receiverships, one from regulatory directives, and one from
administration.
Standard & Poor's baseline projection for the U.S. corporate
trailing 12-month speculative-grade default rate for March 2012 is
1.6%. A total of 24 issuers would need to default from April 2011
to March 2012 to reach the forecast.
The projection of 1.6% is another 0.86-percentage-point (or
another 35%) decline from the 2.46% default rate in March 2011.
This rate of decline would be sharp, but slower than the decline
over the past 16 months. Improved lending conditions and a lower
cost of capital are keeping our default expectations relatively
upbeat in the next 12 months. S&P is seeing stronger credit
quality, as reflected in fewer downgrades and lower negative bias.
In addition to its baseline projection, S&P forecasts the default
rate in our optimistic and pessimistic scenarios. In its
optimistic default rate forecast scenario, the economy and the
financial markets improve more than expected. As a result, S&P
would expect the default rate to be 1.2% (18 defaults in the next
12 months).
On the other hand, if the economic recovery stalls and the
financial markets deteriorate -- which is our pessimistic
scenario-- S&P expects the default rate to be 3.3% (50 defaults)
by March 2012. S&P bases its forecasts on quantitative and
qualitative factors that we consider, including, but not
limited to, Standard & Poor's proprietary default model for the
U.S. corporate speculative-grade bond market. S&P updates its
outlook for the U.S. issuer-based corporate speculative-grade
default rate each quarter after analyzing the latest economic data
and expectations.
* BOND PRICING: For the Week April 18 to April 22, 2011
-------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
AINSWORTH GAME 8.00 12/31/2011 AUD 1.20
AMITY OIL LTD 10.00 10/31/2013 AUD 1.95
AMP GROUP FINANC 9.80 04/01/2019 NZD 0.96
AUSTRALIA COMM 3.00 07/29/2049 GBP 5.00
BECTON PROP GR 9.50 06/30/2010 AUD 0.31
CENTAUR MINING 11.00 12/01/2007 USD 0.50
EXPORT FIN & INS 0.50 12/16/2019 NZD 62.75
EXPORT FIN & INS 0.50 06/15/2020 AUD 60.47
EXPORT FIN & INS 0.50 06/15/2020 NZD 59.87
FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.60
HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.97
MINERALS CORP 10.50 09/30/2011 AUD 0.25
NEW S WALES TREA 1.00 09/02/2019 AUD 66.25
NEW S WALES TREA 0.50 09/14/2022 AUD 53.85
NEW S WALES TREA 0.50 10/07/2022 AUD 53.39
NEW S WALES TREA 0.50 10/28/2022 AUD 53.15
NEW S WALES TREA 0.50 11/18/2022 AUD 53.00
NEW S WALES TREA 0.50 12/16/2022 AUD 52.48
NEW S WALES TREA 0.50 02/02/2023 AUD 52.12
NEW S WALES TREA 0.50 03/30/2023 AUD 51.58
NEXUS AUSTRALIA 3.60 08/31/2017 AUD 73.99
NEXUS AUSTRALIA 3.60 08/31/2019 AUD 67.26
RESOLUTE MINING 12.00 12/31/2012 AUD 1.26
TREAS CORP VICT 0.50 08/25/2022 AUD 54.52
TREAS CORP VICT 0.50 11/12/2030 AUD 52.74
TREAS CORP VICT 0.50 11/12/2030 AUD 35.95
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 63.32
CHINA RAIL GRP 4.72 05/07/2014 CNY 57.28
HONG KONG
---------
RESPARCS FUNDING 8.00 12/29/2049 USD 57.28
INDIA
-----
POWER FIN CORP 8.99 01/15/2021 INR 9.20
PUNJAB INFRA DB 0.40 10/15/2024 INR 25.84
PUNJAB INFRA DB 0.40 10/15/2025 INR 23.42
PUNJAB INFRA DB 0.40 10/15/2026 INR 21.30
PUNJAB INFRA DB 0.40 10/15/2027 INR 19.46
PUNJAB INFRA DB 0.40 10/15/2028 INR 17.80
PUNJAB INFRA DB 0.40 10/15/2029 INR 16.32
PUNJAB INFRA DB 0.40 10/15/2030 INR 14.99
PUNJAB INFRA DB 0.40 10/15/2031 INR 13.80
PUNJAB INFRA DB 0.40 10/15/2032 INR 12.73
PUNJAB INFRA DB 0.40 10/15/2033 INR 11.77
INDONESIA
---------
ADIRA FINANCE 14.00 05/13/2012 IDR 64.53
JAPAN
-----
AIFUL CORP 1.99 03/23/2012 JPY 74.88
AIFUL CORP 1.22 04/20/2012 JPY 49.94
AIFUL CORP 1.63 11/22/2012 JPY 54.92
AIFUL CORP 1.74 05/28/2013 JPY 47.93
AIFUL CORP 1.99 10/19/2015 JPY 37.94
COVALENT MATERIA 2.87 02/18/2013 JPY 62.97
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 59.75
JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 59.18
SHINSEI BANK 5.62 12/29/2049 GBP 73.62
TAKEFUJI CORP 9.20 04/15/2011 USD 7.00
TOKYO ELECTRIC POWER 2.20 02/27/2029 JPY 74.98
TOKYO ELECTRIC POWER 1.95 07/29/2030 JPY 74.83
TOKYO ELECTRIC POWER 2.36 05/28/2040 JPY 72.79
MALAYSIA
--------
ADVANCED SYNERY 2.00 01/26/2018 MYR 0.12
ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.56
CRESENDO CORP B 3.75 01/11/2016 MYR 1.25
DUTALAND BHD 6.00 04/11/2013 MYR 0.41
DUTALAND BHD 6.00 04/11/2013 MYR 0.83
EASTERN & ORIENT 8.00 07/25/2011 MYR 1.25
EASTERN & ORIENT 8.00 11/16/2019 MYR 1.26
ENCORP BHD 6.00 02/17/2016 MYR 0.93
KUMPULAN JETSON 5.00 11/27/2012 MYR 1.16
LION DIVERSIFIED 4.00 12/17/2013 MYR 0.60
MITHRIL BHD 3.00 04/05/2012 MYR 0.59
NAM FATT CORP 2.00 06/24/2011 MYR 0.03
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.30
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.48
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.29
PANTECH GROUP 7.00 12/21/2017 MYR 0.11
PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.51
REDTONE INTL 2.75 03/04/2020 MYR 0.08
RUBBEREX CORP 4.00 08/14/2012 MYR 0.80
SCOMI ENGINEERING 4.00 03/19/2013 MYR 0.85
SCOMI GROUP 4.00 12/14/2012 MYR 0.07
TATT GIAP 2.00 06/03/2015 MYR 0.70
TRADEWINDS CORP 2.00 02/26/2016 MYR 0.85
TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.60
TRC SYNERGY 5.00 01/20/2012 MYR 1.79
WAH SEONG CORP 3.00 05/21/2012 MYR 2.31
WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.25
YTL CEMENT BHD 5.00 11/10/2015 MYR 2.33
NEW ZEALAND
-----------
ALLIED FARMERS 9.60 11/15/2011 NZD 31.80
DORCHESTER PACIF 5.00 06/30/2013 NZD 74.77
INFRATIL LTD 8.50 09/15/2013 NZD 8.00
INFRATIL LTD 8.50 11/15/2015 NZD 8.75
INFRATIL LTD 4.97 12/29/2049 NZD 60.80
KIWI INCOME PROP 8.95 12/20/2014 NZD 1.29
NZF GROUP 6.00 03/15/2016 NZD 24.12
SKY NETWORK TV 4.01 10/16/2016 NZD 6.19
ST LAURENCE PROP 9.25 07/15/2010 NZD 44.02
TOWER CAPITAL 8.50 04/15/2014 NZD 0.96
TRUSTPOWER LTD 8.50 09/15/2012 NZD 6.60
TRUSTPOWER LTD 8.50 03/15/2014 NZD 7.00
UNI OF CANTERBUR 7.25 12/15/2019 NZD 1.01
VECTOR LTD 8.00 06/15/2012 NZD 6.95
SINGAPORE
---------
BLUE OCEAN 11.00 06/28/2012 USD 43.00
CAPITAMALLS ASIA 1.00 01/21/2012 SGD 0.97
CAPITAMALLS ASIA 2.15 01/21/2014 SGD 0.99
F&N TREASURY PTE 3.15 03/28/2018 SGD 0.99
NEXUS 1 PTE LTD 10.50 03/07/2012 USD 1.01
SENGKANG MALL 4.88 11/20/2012 SGD 0.04
UNITED ENG LTD 1.00 03/03/2014 SGD 1.85
WBL CORPORATION 2.50 06/10/2014 SGD 1.64
SOUTH KOREA
-----------
CN 1ST ABS 8.00 02/27/2015 KRW 31.53
DONGSAN DEVELOPM 3.50 05/08/2011 KRW 13.26
DONGSAN TELECOM 6.00 07/02/2013 KRW 50.84
HOPE KOD 1ST 8.50 06/30/2012 KRW 23.29
HOPE KOD 2ND 15.00 08/21/2012 KRW 36.12
HOPE KOD 3RD 15.00 09/30/2012 KRW 30.53
HOPE KOD 4TH 15.00 12/29/2012 KRW 31.52
HOPE KOD 6TH 15.00 03/10/2013 KRW 34.62
IBK 12TH ABS 25.00 06/24/2011 KRW 57.65
IBK 17TH ABS 20.00 12/29/2012 KRW 5.98
IBK 17TH ABS 25.00 12/29/2012 KRW 59.23
JOONG ANG DESIGN 6.00 12/18/2012 KRW 59.42
KB 11TH ABS 23.00 07/03/2011 KRW 71.68
KB 11TH ABS 20.00 07/03/2011 KRW 66.71
KB 12TH ABS 25.00 01/21/2012 KRW 65.21
KB 13TH ABS 25.00 07/02/2012 KRW 61.21
KB 14TH ABS 23.00 01/04/2013 KRW 51.81
KDB 6TH ABS 20.00 12/02/2019 KRW 70.53
KEB 17TH ABS 20.00 12/28/2011 KRW 52.10
KOREA LINE CO 6.80 11/30/2011 KRW 60.20
KOREA LINE CO 6.80 12/11/2011 KRW 50.38
KOREA LINE CO 6.80 06/30/2012 KRW 40.62
KOREA MUTUAL SAV 8.10 06/26/2015 KRW 70.18
NACF 17TH ABS 20.00 06/03/2011 KRW 50.24
NACF 17TH ABS 25.00 07/03/2011 KRW 51.84
ONE KDB 1ST ABS 7.60 06/13/2011 KRW 25.71
OSAN MYTOWN 1ST 5.64 04/16/2012 KRW 63.36
OSAN MYTOWN 2ND 5.64 04/16/2012 KRW 71.44
SINBO 1ST ABS 15.00 07/22/2013 KRW 30.61
SINBO 2ND ABS 15.00 08/26/2013 KRW 32.61
SINBO 3RD ABS 15.00 09/30/2013 KRW 33.41
SINBO 4TH ABS 15.00 12/16/2013 KRW 31.25
SINBO 5TH ABS 15.00 02/23/2014 KRW 30.45
SINBO CO 1ST ABS 15.00 03/15/2014 KRW 30.16
SOLOMON MUTUAL B 8.10 04/19/2015 KRW 63.98
TOMATO MUTUAL SA 8.40 01/06/2015 KRW 1.20
SRI LANKA
---------
SRI LANKA GOVT 5.35 03/01/2026 LKR 66.36
THAILAND
--------
THAILAND GOVT 0.75 01/04/2022 THB 71.43
VIETNAM
--------
VIETNAM MACHINE 9.20 06/06/2017 VND 69.97
VIETNAM SHIPBUIL 9.00 04/13/2017 VND 52.63
VIETNAM-PAR 4.00 03/12/2028 USD 73.00
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante,
Rousel Elaine T. Fernandez, Psyche A. Castillon, Julie Anne G.
Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A.
Chapman, Editors.
Copyright 2011. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***