/raid1/www/Hosts/bankrupt/TCRAP_Public/110523.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
Monday, May 23, 2011, Vol. 14, No. 100
Headlines
A U S T R A L I A
FORTESCUE METALS: Fitch Assigns 'BB+(exp)' to US$1.0BB Term Loan
FORTESCUE METALS: S&P Raises CCR to 'B+' with Stable Outlook
C H I N A
GLOBAL DAIRY: Moody's Withdraws Provisional (P)B2 Bond Rating
H O N G K O N G
ADWIN INDUSTRIES: Members' Final Meeting Set for June 23
ANDERSON ASIA: Commences Wind-Up Proceedings
CI SHAN: Members' Meeting Set for June 20
EAST YIELD: Creditors' Proofs of Debt Due June 21
GMTBS AFRICA: Commences Wind-Up Proceedings
HOTUNG ENTERPRISES: Chui Chi Yun Appointed as Liquidator
JET BILLION: Creditors' Final General Meeting Set for June 24
JETFLY INDUSTRIAL: Members' Final Meeting Set for June 24
LI FUNG: Chan Pong Chau Steps Down as Liquidator
P.K. NG DESIGN: Creditors' Proofs of Debt Due June 20
I N D I A
BEST CHERAN: CRISIL Upgrades Rating on INR216.1M Loan to 'B+'
CHERAN SPINNER: CRISIL Upgrades Rating on INR51MM Loan to 'B+'
CHINTAMANI'S JEWELLERY: CRISIL Rates INR20MM LT Loan at 'BB+'
GOPSONS PAPERS: Fitch Affirms INR450MM Loans at 'BB(ind)'
ICICI BANK: S&P Keeps 'BB' Rating on Hybrid Tier 1 Notes
JET AIRWAYS: Annual Loss Narrows to INR858.4MM in FY2010-11
KAMAKHYA COLD: CRISIL Rates INR84 Million Term Loan at 'B'
KAUSHAL FERRO: CRISIL Reaffirms 'D' Rating on INR125.3MM Term Loan
LAGAN ENGINEERING: CRISIL Assigns 'B+' Rating to INR5.8MM LT Loan
MAKKAR TEXTILE: CRISIL Assigns 'B-' Rating to INR35MM Cash Credit
SALET SEAFOODS: CRISIL Upgrades Rating on INR4MM Loan to 'BB-'
SANMAAN RICE: CRISIL Rates INR80.0 Million Cash Credit at 'B'
SKY STAR: CRISIL Assigns 'BB-' Rating to INR192.5MM LT Loan
TRIBHOVANDAS BHIMJI: Fitch Assigns 'BB+(ind)' National LT Rating
UBICO NETWORKS: Fitch Rates INR200 Million LT Loans at 'BB-(ind)'
I N D O N E S I A
PERTAMINA (PERSERO): Moody's Assigns 'Ba1' Rating to US$1BB Notes
J A P A N
CSC SERIES 1: Moody's Cuts Ratings on Various Classes of Bonds
L-JAC5 TRUST: Moody's Reviews Ratings for Possible Downgrade
SOFTBANK CORP: S&P Puts 'BB+' Corp. Credit Rating on Watch Pos.
TOKYO ELECTRIC: Creditor Banks Not Considering Debt Write Off
TOKYO ELECTRIC: Posts JPY1.24-Tril. Net Loss; President to Resign
N E W Z E A L A N D
DON HA REAL ESTATE: Receivers Sell Firm for NZ$1.35 Million
JEAN JONES: Receiver Sells 13 Jean Jones Stores
S I N G A P O R E
CFS TECHNOLOGIES: Creditors' Proofs of Debt Due June 20
CHARISLAND PTE: Creditors' Meeting Set for May 26
DIAMOND MARINE: Court Enters Wind-Up Order
GOLDEN JAGUAR: First Creditors' Meetings Set for June 1
KINDERGARTEN & CHILDCARE: Creditors Get 100% Recovery on Claims
LZ BUILDERS: Court to Hear Wind-Up Petition May 27
PACRIM INVESTMENTS: Court Enters Wind-Up Order
PROSPERITY INTERNATIONAL: Creditors' Proofs of Debt Due May 30
SYMBIOSIS ENGINEERING: Creditors Get 17.78446% Recovery on Claims
TSKLINE (S): Members' Final Meeting Set for June 22
TUNG GUAN: Creditors' Proofs of Debt Due June 3
- - - - -
=================
A U S T R A L I A
=================
FORTESCUE METALS: Fitch Assigns 'BB+(exp)' to US$1.0BB Term Loan
----------------------------------------------------------------
Fitch Ratings has assigned FMG Resources (August 2006) Pty Ltd's
proposed USD1.0 billion Term Loan B due June 2017 an expected
rating of 'BB+(exp)'. The proceeds of the new financing will be
used to finance previously announced expansion activities and for
other general corporate purposes. The final rating is contingent
upon receipt by Fitch of final documentation conforming to
information already received.
The notes will be unconditionally joint and severally guaranteed
by Fortescue Metals Group Limited ('Fortescue', 'BB+'/Stable) and
its subsidiaries, currently representing more than 95% of the
group's consolidated total assets and net income. As a result of
this guarantee structure, Fitch regards the credit risk associated
with the term loan to be the same as that of senior unsecured
obligations of Fortescue itself.
The credit agreement contains certain clauses usual for this type
of issuance which include: mandatory prepayment in case of change
of control; restricted payments; restrictions on new debt
issuance; and cross-default provisions. It should be noted that
these clauses contain certain carve-outs, exceptions and
qualifications.
Fitch also notes that the company is negotiating a three year
USD500m senior unsecured revolving facility with a syndicate of
banks. This facility will be used for liquidity and general
corporate purposes.
On Oct. 10, 2010, Fitch Ratings assigned Fortescue a Foreign
Currency Long-Term Issuer Default Rating (IDR) and senior
unsecured rating both at 'BB+', Outlook Stable.
FORTESCUE METALS: S&P Raises CCR to 'B+' with Stable Outlook
------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating and senior unsecured debt ratings on Australia-based
Fortescue to 'B+', from 'B'. The outlook is stable. The recovery
rating is affirmed at '4'. "We have also assigned our 'B+'
ratings to Fortescue's proposed US$1 billion term loan B and
proposed US$500 million revolving bank facility by Fortescue's
funding arm, FMG Resources (August 2006) Pty Ltd. (not rated). The
proceeds from the proposed issuance will be used to fund the
company's 155 million tonnes per annum (mtpa) expansion," S&P
stated.
"The upgrade on Fortescue reflects our view of its relatively
long-life, low-cost iron ore production, adequate liquidity, and
improving cash flows due to a buoyant iron ore market and steady
state of production at the rate of 40 mtpa," Standard & Poor's
credit analyst May Zhong said. "Nevertheless, moderating the
rating are the company's asset concentration risk, rising
production cost, and aggressive growth strategy that calls for a
significant capital-expenditure program over the medium term.
Although funding for the growth strategy has progressed well so
far, the company faces material project execution risks. An
unexpected drop in iron ore prices could exacerbate the negative
impact of cost over-runs and delays in ramp-up."
"The stable outlook reflects our expectation that the current
level of iron ore prices should continue to support Fortescue's
financial metrics at the 'B+' level, and generate cash flows to
partly fund the company's aggressive expansion," S&P said.
A higher rating may occur if:
* Fortescue's production sustains at the rate of 55 mpta;
* S&P has more certainty about the ramp-up of production to 95
mtpa;
* The company's growth aspiration is not more aggressive than
currently expected; and
* Liquidity remains adequate, in light of the upcoming growth
capital expenditure.
Downward rating could be precipitated by a significant weakening
in iron ore prices along with the company's heavy capital
expenditure, causing its FFO-to-debt ratio to fall below 15%, and
debt-to-EBITDA to go higher than 4.0x.
=========
C H I N A
=========
GLOBAL DAIRY: Moody's Withdraws Provisional (P)B2 Bond Rating
-------------------------------------------------------------
Moody's Investors Service has withdrawn Global Dairy Holdings
Limited's provisional (P)B2 rating on the proposed USD settled RMB
denominated senior guaranteed notes.
The rating withdrawal follows the company's recent decision not to
proceed with its bond issuance.
At the same time, Moody's has affirmed Global Dairy's B2 corporate
family rating with a stable outlook.
The B2 rating reflects Global Dairy's track record of ramping up
sales over the last three years, its efficient distribution model,
and its strategy to focus on the second- and third-tier cities to
avoid head-to-head competition with large foreign players.
On the other hand, the rating also reflects Chinese milk powder
market's highly competitive and fragmented nature, Global Dairy's
short operating history under its current management, and the
inherent high food safety risk.
The principal methodology used in rating Global Dairy Holdings
Limited was the Global Packaged Goods Industry Methodology,
published July 2009 and Global Food - Protein and Agriculture
Industry Methodology, published September 2009.
Listed on the Hong Kong Stock Exchange in October 2010, Global
Dairy is a Chinese branded milk powder company. It is engaged in
the production and sale of medium-to-high and premium-priced milk
formula products in China. It has operating facilities in
Heilongjiang province, and distributes its products to 21
provinces and Chongqing in China.
================
H O N G K O N G
================
ADWIN INDUSTRIES: Members' Final Meeting Set for June 23
--------------------------------------------------------
Members of Adwin Industries Limited will hold their final meeting
on June 23, 2011, at 10:00 a.m., at 29/F, Caroline Centre, Lee
Gardens Two, 28 Yun Ping Road, in Hong Kong.
At the meeting, Osman Mohammed Arab, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
ANDERSON ASIA: Commences Wind-Up Proceedings
--------------------------------------------
Members of Anderson Asia Investment Limited, on May 13, 2011,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Cheng Kwok Wai David
Chan Yuen Bik Jane
31/F, Gloucester Tower
The Landmark
11 Pedder Street
Central, Hong Kong
CI SHAN: Members' Meeting Set for June 20
-----------------------------------------
Members of Ci Shan Tang Company Limited will hold their general
meeting on June 20, 2011, at 11:00 a.m., at 5C Mei Foo Sun Chuen,
126 Broadway, in Hong Kong.
At the meeting, Keung Yiu Wing, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
EAST YIELD: Creditors' Proofs of Debt Due June 21
-------------------------------------------------
Creditors of East Yield International Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by June 21, 2011, to be included in the company's dividend
distribution.
The company's liquidators are:
Ying Zhiyao
Tang Mingliang
Ying Li
Baimao Industrial Development-Zone
Changshu City
Jiangsu, China
GMTBS AFRICA: Commences Wind-Up Proceedings
-------------------------------------------
Members of GMTBS Africa Line Limited, on May 9, 2011, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Tang Piu Hung
3rd Floor, Rammon House
101 Sai Yeung Choi Street South
Mongkok, Kowloon
HOTUNG ENTERPRISES: Chui Chi Yun Appointed as Liquidator
--------------------------------------------------------
Chui Chi Yun on May 6, 2011, was appointed as liquidator of Hotung
Enterprises Limited.
The liquidator may be reached at:
Chui Chi Yun
Room 2109, China Resources Building
26 Harbour Road
Wanchai, Hong Kong
JET BILLION: Creditors' Final General Meeting Set for June 24
-------------------------------------------------------------
Creditors of Jet Billion Limited will hold their final general
meeting on June 24, 2011, at 10:15 a.m., at Room 201, Duke of
Windsor Social Service Building, 15 Hennessy Road, Wanchai, in
Hong Kong.
At the meeting, Lo Wing Hung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
JETFLY INDUSTRIAL: Members' Final Meeting Set for June 24
---------------------------------------------------------
Members of Jetfly Industrial Limited will hold their final general
meeting on June 24, 2011, at 11:00 a.m., at 10/F, Allied Kajima
Building, 138 Gloucester Road, Wanchai, in Hong Kong.
At the meeting, Li Yuen Yu Alice, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
LI FUNG: Chan Pong Chau Steps Down as Liquidator
------------------------------------------------
Chan Pong Chau stepped down as liquidator of Li Fung Petroleum
Trading Company Limited on May 16, 2011.
P.K. NG DESIGN: Creditors' Proofs of Debt Due June 20
-----------------------------------------------------
Creditors of P.K. Ng Design Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by June 20, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on May 9, 2011.
The company's liquidator is:
Seto Sau Kuen Christine
Room 1509 C C Wu Building
302-8 Hennessy Road
Wanchai, Hong Kong
=========
I N D I A
=========
BEST CHERAN: CRISIL Upgrades Rating on INR216.1M Loan to 'B+'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Best Cheran Spintex India Ltd to 'B+/Stable' from 'B-/Stable'.
CRISIL has assigned its 'P4' rating to the company's export
packing credit facility, while reaffirming the 'P4' rating on the
letter of credit and bank guarantee facility.
Facilities Ratings
---------- --------
INR10.0 Million Cash Credit B+/Stable (Upgraded from
'B-/Stable')
INR216.1 Million Long-Term Loan B+/Stable (Upgraded from
'B-/Stable')
INR14.9 Million Proposed LT Loan B+/Stable (Upgraded from
'B-/Stable')
INR90.0 Mil. Export Packing Credit P4 (Assigned)
INR50.0 Million Letter of Credit P4 (Reaffirmed)
& Bank Guarantee
The upgrade reflects sustained improvement in the Cheran group's
cash accruals and liquidity, resulting in a track record of timely
debt servicing over the past 12 months; though the liquidity has
improved from earlier levels, it continues to remain below-
average. The upgrade also factors in CRISIL's belief that the
group's cash accruals over the medium term will be sufficient to
meet its maturing debt obligations.
The ratings continue to reflect the Cheran group's exposure to
risks related to supplier concentration and volatility in the
prices of viscose staple fibre (VSF), and its moderate financial
risk profile, marked by stretched liquidity. These rating
weaknesses are partially offset by the benefits that the group
derives from its position as an established player in the viscose
yarn industry.
For arriving at the ratings, CRISIL has combined the business and
financial risk profile of Best Cheran and Cheran Spinner Ltd.
This is because both companies, together referred to as the Cheran
group, are in the same line of business, under common management,
and share the functions relating to procurement of raw materials
and marketing. The two companies have also extended financial
support to each other in the event of exigencies.
Outlook: Stable
CRISIL believes that the Cheran group will continue to benefit
over the medium term from its established position in the viscose
yarn industry. The outlook may be revised to 'Positive' in case
the group reports healthy improvement in revenues, profitability,
and liquidity, while managing its working capital prudently.
Conversely, the outlook may be revised to 'Negative' in case of a
sharp decline in the Cheran group's operating margin, leading to
deterioration in its debt protection metrics, or if the group
undertakes a larger-than-expected, debt-funded capital expenditure
programme.
About the Group
The Cheran group, consisting of Cheran Spinner and Best Cheran, is
promoted by Mr. R Pongianna Gounder. Set up in 1991, and
headquartered at Erode (Tamil Nadu), the group manufactures and
exports viscose and viscose-blended yarn. It has a combined
capacity of 32,256 spindles and 2880 rotors. For 2009-10 (refers
to financial year, April 1 to March 31), the Cheran group reported
a profit after tax of INR50.7 million on net sales of INR1.56
billion, against a net loss of INR42.8 million on net sales of
INR1.12 billion for 2008-09.
CHERAN SPINNER: CRISIL Upgrades Rating on INR51MM Loan to 'B+'
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Cheran Spinner Ltd to 'B+/Stable' from 'B-/Stable'. CRISIL has
assigned its 'P4' rating to the company's export packing credit
facility, while reaffirming the 'P4' rating on the letter of
credit and bank guarantee facility.
Facilities Ratings
---------- --------
INR51 Million Long-Term Loan B+/Stable (Upgraded from
'B-/Stable')
INR70 Million Cash Credit B+/Stable (Upgraded from
'B-/Stable')
INR153 Mil. Export Packing Credit P4 (Assigned)
INR100 Million Letter of Credit P4 (Reaffirmed)
INR7.5 Million Bank Guarantee P4 (Reaffirmed)
The upgrade reflects sustained improvement in the Cheran group's
cash accruals and liquidity, resulting in a track record of timely
debt servicing over the past 12 months; though the liquidity has
improved from earlier levels, it continues to remain below-
average. The upgrade also factors in CRISIL's belief that the
group's cash accruals over the medium term will be sufficient to
meet its maturing debt obligations.
The ratings continue to reflect the Cheran group's exposure to
risks related to supplier concentration and volatility in the
prices of viscose staple fibre (VSF), and its moderate financial
risk profile, marked by stretched liquidity. These rating
weaknesses are partially offset by the benefits that the group
derives from its position as an established player in the viscose
yarn industry.
For arriving at the ratings, CRISIL has combined the business and
financial risk profile of Best Cheran Spintex India Ltd (Best
Cheran) and Cheran Spinner. This is because both companies,
together referred to as the Cheran group, are in the same line of
business, under common management, and share the functions
relating to procurement of raw materials and marketing. The two
companies have also extended financial support to each other in
the event of exigencies.
Outlook: Stable
CRISIL believes that the Cheran group will continue to benefit
over the medium term from its established position in the viscose
yarn industry. The outlook may be revised to 'Positive' in case
the group reports healthy improvement in revenues, profitability,
and liquidity, while managing its working capital prudently.
Conversely, the outlook may be revised to 'Negative' in case of a
sharp decline in the Cheran group's operating margin, leading to
deterioration in its debt protection metrics, or if the group
undertakes a larger-than-expected, debt-funded capital expenditure
programme.
About the Group
The Cheran group, consisting of Cheran Spinner and Best Cheran, is
promoted by Mr. R Pongianna Gounder. Set up in 1991, and
headquartered at Erode (Tamil Nadu), the group manufactures and
exports viscose and viscose-blended yarn. It has a combined
capacity of 32,256 spindles and 2880 rotors. For 2009-10 (refers
to financial year, April 1 to March 31), the Cheran group reported
a profit after tax of INR50.7 million on net sales of INR1.56
billion, against a net loss of INR42.8 million on net sales of
INR1.12 billion for 2008-09.
CHINTAMANI'S JEWELLERY: CRISIL Rates INR20MM LT Loan at 'BB+'
-------------------------------------------------------------
CRISIL has assigned its rating of 'BB+/Stable' to the bank
facilities of Chintamani's Jewellery Arcade Pvt Ltd.
Facilities Ratings
---------- --------
INR110.00 Million Overdraft Facility BB+/Stable (Assigned)
INR20.00 Million Proposed Long-Term BB+/Stable (Assigned)
Bank Loan Facility
The rating reflects CJAL's moderate financial risk profile and its
exposure to the intense competition within the fragmented gold
jewellery retail industry. These weaknesses are somewhat offset by
the long standing experience of its promoters and the strong brand
image associated with brand 'Chintamani'.
Outlook: Stable
CRISIL believes that CJAL will continue to have a stable business
profile over the medium term backed by its established market
position in the Mumbai retail jewellery market. The outlook may be
revised to 'Positive' in case of significant growth in revenues &
profitability resulting in an improved financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
any aggressive debt funded expansion or substantial deterioration
in the revenues and margins leading to weakening of the debt
protection metrics.
About Chintamani's Jewellery
Chintamani's Jewellery Arcade Pvt Ltd. owns jewellery retail
stores at Prabhadevi, Girgaum and Borivali in Mumbai. The company
is engaged in retailing of gold jewellery, diamond studded
jewellery and silver articles. The business is owned and managed
by Mr Arun Kaigaonkar and his family members.
CJAL reported a profit after tax (PAT) of INR4.0 million on net
sales of INR600.6 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR2.7 million on net
sales of INR512.4 million for 2008-09.
GOPSONS PAPERS: Fitch Affirms INR450MM Loans at 'BB(ind)'
---------------------------------------------------------
Fitch Ratings has affirmed India-based Gopsons Papers Limited's
(Gopsons) National Long-Term rating at 'BB(ind)'. The Outlook is
Stable. The agency has also affirmed Gopsons' bank facilities:
-- INR450m long term loans (enhanced from INR373.1m):
'BB(ind)';
-- INR210m fund-based working capital limits:
'BB(ind)'/'F4(ind)'; and
-- INR200m non fund-based working capital limits (reduced from
INR220m): 'BB(ind)'/'F4(ind)'.
ICICI BANK: S&P Keeps 'BB' Rating on Hybrid Tier 1 Notes
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BBB-' rating to
the issue of senior unsecured notes by ICICI Bank Ltd. (foreign
currency BBB-/Stable/A-3) under the bank's existing US$5 billion
medium-term notes (MTN) program. The notes will have a tenor of
5.5 years and will be issued through the bank's Dubai branch.
The proceeds from the issue will be used to fund the bank's
international operations and for general corporate purposes,
subject to regulatory approval. The senior notes constitute
direct, unconditional, unsecured, and unsubordinated obligations
of the bank, and shall at all times rank pari passu with all other
unsecured obligations.
Standard & Poor's ratings on ICICI Bank's proposed debt issues
under the US$5 billion MTN program remain:
* 'BBB-' rating on the senior unsecured notes; and
* 'BB' rating on the hybrid Tier 1 notes.
JET AIRWAYS: Annual Loss Narrows to INR858.4MM in FY2010-11
-----------------------------------------------------------
The Economic Times reports that Jet Airways India Ltd said its
FY11 consolidated net loss has narrowed to IN858.4 million from
INR4.20 billion a year ago.
The company reported a total income of INR145.23 billion in FY11,
compared with INR120.28 billion a year ago.
The private airline posted a standalone net profit of INR96.9
million for FY11.
About Jet Airways
Jet Airways (India) Ltd (BOM:532617) -- http://www.jetairways.com/
-- provides air transportation. The geographic segments of the
company are domestic and international. The company has a
frequent flyer program named Jet Privilege wherein the passengers
who uses the services of the airline become services of the
airline become members of Jet Privilege and accumulates miles to
their credit. The company's subsidiaries include Jet Lite (India)
Limited, Jetair Private Limited, Jet Airways LLC, Trans
Continental e Services Private Limited, Jet Enterprises Private
Limited, Jet Airways of India Inc., India Jetairways Pty Limited
and Jet Airways Europe Services N.V. On April 20, 2007, the
company acquired Sahara Airlines Limited.
* * *
Jet Airways posted three consecutive consolidated net losses of
INR6.5 billion, INR9.6 billion and INR4.2 billion for the years
ended March 31, 2008 through 2010.
KAMAKHYA COLD: CRISIL Rates INR84 Million Term Loan at 'B'
----------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the term loan
facility of Kamakhya Cold Storage (Pvt) Ltd.
Facilities Ratings
---------- --------
INR84 Million Term Loan B/Stable (Assigned)
The rating reflects KCSPL's susceptibility to risks related to
project implementation and intense industry competition and
geographic concentration. These rating weaknesses are partially
offset by the extensive experience of KCSPL's promoters in the
real estate industry.
Outlook: Stable
CRISIL believes that KCSPL will continue to face risks related to
project implementation, over the medium term. The outlook may be
revised to 'Positive' if KCSPL is able to successfully complete
its ongoing project without any time or cost overrun, and generate
stable cash accruals from the sales proceeds. Conversely, the
outlook may be revised to 'Negative' in case of delays in project
implementation or inability of the company to generate stable cash
accruals, affecting its debt repayments.
About Kamakhya Cold
KCSPL, a part of the K T group, was set up in 1997 to undertake
real estate development projects by Mr. R K Goel. The company is
implementing a residential and commercial project in Siliguri ,
West Bengal. The project is managed by Mr. R K Goel and his son,
Mr. Yogesh Goel. The commercial project is expected to be
completed by end of calendar year 2013 and its estimated cost is
around INR15.30 crores. The company has received the necessary
approvals and work on the project has just commenced. However,
term loan for the same is yet to be sanctioned.
The residential project is in the very initial stages. The company
has applied for the necessary approvals for the same which are yet
to be cleared.
The K T group was set up in 1978 by Mr. R K Goel. The group is
mainly involved in constructing power projects for the Government
of Sikkim, and in the real estate business, mainly near Siliguri.
KAUSHAL FERRO: CRISIL Reaffirms 'D' Rating on INR125.3MM Term Loan
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kaushal Ferro Metal Pvt
Ltd continue to reflect instances of delay by Kaushal Ferro in
servicing its debt; the delays have been caused by the company's
weak liquidity.
Facilities Ratings
---------- --------
INR55.0 Million Cash Credit D (Reaffirmed)
INR125.3 Million Term Loan D (Reaffirmed)
INR169.7 Million Proposed LT D (Reaffirmed)
Bank Loan facilities
Set up in 2004, Kaushal Ferro began commercial production in 2007.
It manufactures sponge iron at its manufacturing facilities in
Sundargarh, which is around 400 kilometres from Bhubaneswar
(Orissa). The company has an installed capacity of 60,000 tonnes
per annum.
Kaushal Ferro reported a profit after tax (PAT) of INR4.4 million
on net sales of INR452.4 million for 2010-11 (refers to financial
year, April 1 to March 31) against a net loss of INR(5.5) million
on net sales of INR465.3 million for 2009-10.
LAGAN ENGINEERING: CRISIL Assigns 'B+' Rating to INR5.8MM LT Loan
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank
facilities of Lagan Engineering Company Ltd.
Facilities Ratings
---------- --------
INR55 Million Cash Credit B+/Stable (Assigned)
INR5.8 Million Long-Term Loan B+/Stable (Assigned)
INR5 Million Letter of Credit P4 (Assigned)
INR45 Million Bank Guarantee P4 (Assigned)
The ratings reflect LECL's relatively small scale of operations,
and large working capital requirements. These rating weaknesses
are partially offset by the company's moderate business risk
profile, marked by promoters' extensive experience, and
comfortable order book.
Outlook: Stable
CRISIL believes that LECL will continue to benefit from its
promoter's extensive industry experience over the medium term. The
outlook may be revised to 'Positive' in case LECL scales up its
operations significantly, leading to higher-than-expected cash
accruals. Conversely, the outlook may be revised to 'Negative' if
LECL's undertakes larger than expected capex plans, or if there is
a significant weakening in the company's revenues or margins.
About Lagan Engineering
LECL, earlier known as The Lagan Jute Machinery Company Ltd, was
acquired by the Kajaria family in 2000 through disinvestment by
the Government of India. Murlidhar Ratanlal Exports Ltd has about
69% stake in LECL. The company is a leading jute-mill-machine
manufacturer. Its plant is in Hooghly (West Bengal). LECL's
product profile includes spreaders, cards, drawings, spinning, and
twisting frames, among other machinery required by the jute
industry. The company supplies its products largely in West
Bengal. The company also exports its products largely to
Bangladesh.
LECL reported a profit after tax (PAT) of INR9.3 million on net
sales of INR159.6 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a net loss of INR9.8 million on
net sales of INR124.8 million for 2008-09.
MAKKAR TEXTILE: CRISIL Assigns 'B-' Rating to INR35MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'B-/Negative' rating to the long-term bank
facilities of Makkar Textile Mills Pvt Ltd.
Facilities Ratings
---------- --------
INR35.00 Million Cash Credit B-/Negative (Assigned)
INR70.00 Million Term Loan B-/Negative (Assigned)
INR66.00 Million Proposed LT B-/Negative (Assigned)
Bank Loan Facility
The rating reflects MTM's weak financial risk profile, marked by
small net worth, high gearing, weak debt protection metrics, and
weak liquidity, on account of its large, debt funded capital
expenditure (capex) programme and large working capital
requirements. The rating also reflects the company's small scale
of operations, low operating margin, and susceptibility to
volatility in raw material prices. These rating weaknesses are
partially offset by the established track record of MTM's
promoters in the shawl manufacturing business.
Outlook: Negative
CRISIL believes that MTM's financial risk profile, particularly
its liquidity, will remain constrained by its large, debt-funded
capex programme and small cash accruals. The rating may be
downgraded in case of any further pressure on MTM's liquidity,
most likely due to less-than-expected cash accruals. Conversely,
the outlook may be revised to 'Stable' if MTM's liquidity improves
considerably, due to better-than-expected cash accruals or in case
of significant equity infusion by the promoters.
About Makkar Textile
MTM manufactures shawls from acrylic, viscose, and polyester yarn.
Incorporated in 1994, MTM started with a capacity of 2000 pieces
per day (ppd) in Ludhiana (Punjab). Merchant exporters account for
about 90% of MTM's total sales. MTM also has a retail presence in
the domestic market, which accounts the remaining 10%. The company
is in the process of enhancing its capacity to around 8000 ppd
from its present capacity of 6000 ppd.
MTM reported a profit after tax (PAT) of INR0.7 million on net
sales of INR129.7 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.7 million on net
sales of INR105.5 million for 2008-09.
SALET SEAFOODS: CRISIL Upgrades Rating on INR4MM Loan to 'BB-'
--------------------------------------------------------------
CRISIL has upgraded its ratings on the bank loan facilities of
Salet Seafoods Pvt Ltd to 'BB-/Stable/P4+' from 'B+/Stable/P4'.
Facilities Ratings
---------- --------
INR4.0 Million Term Loan BB-/Stable (Upgraded from
'B+/Stable')
INR216.0 Million Export Packing P4+ (Upgraded from 'P4')
Credit
The upgrade reflects the fact that SSPL has achieved consistent
growth in its topline while sustaining profitability. The
company's topline, of around INR1.35 billion in 2010-11 (refers to
financial year, April 1 to March 31), translates to a compound
annual growth rate of 27% over the three years ended
2008-09. Over this period, its operating margin has remained close
to 3%. Through efficient working capital management, SSPL has
been able to limit its reliance on external debt, which has, in
turn, improved the net profit margin and led to an improved
financial risk profile. The topline and profitability is expected
to be sustained over the medium term, backed by robust demand in
export markets. CRISIL believes that SSPL will not undertake any
large, debt-funded capital expenditure (capex) programme over the
medium term, thereby ensuring the maintenance of its financial
risk profile.
The ratings continue to reflect SSPL's below-average financial
risk profile, marked by modest net worth and weak debt protection
metrics, intense industry competition, and the company's
susceptibility to volatility in foreign exchange rates and to
risks inherent in the seafood industry. These weaknesses are
partially offset by the established track record of the promoters
and efficient working capital management.
Outlook: Stable
CRISIL expects SSPL will maintain its business risk profile,
backed by its established supplier and customer relationships. The
outlook may be revised to 'Positive' if the company is able to
improve its profitability or improve its net worth by infusing
fresh equity. Conversely, the outlook may be revised to 'Negative'
in case of stark deterioration in SSPL's working capital
management, or if supply side constraints hamper its top-line
sustainability, or if the company undertakes a large, debt-funded
capex programme.
About Salet Seafoods
SSPL was incorporated in 1994, promoted by the Salet family of
Dwarka (Gujarat). The company processes and exports fish (pomfret,
ribbon fish, etc) and other marine produce like squid, lobsters,
prawns etc. It has two processing units, with a combined
production capacity of 97 tonnes per day (tpd) and storing
capacity of 2000 tpd. SSPL exports more than 90% of its products
to Japan, China, Malaysia, the US, and European Union nations;
China accounts for 40 to 50% of total exports.
SSPL is expected to report a profit after tax (PAT) of INR11.1
million on net sales of INR1.35 billion for 2010-11, against a PAT
of INR5.2 million on net sales of INR1.1 billion for 2009-10.
SANMAAN RICE: CRISIL Rates INR80.0 Million Cash Credit at 'B'
-------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the Cash Credit
facility of Sanmaan Rice Mills.
Facilities Ratings
---------- --------
INR80.0 Million Cash Credit B/Stable (Assigned)
The rating reflects SRM's weak financial risk profile, marked by a
small net worth, a high gearing, and weak debt protection metrics,
and large working capital requirements. The rating also reflects
SRM's small scale of operations, and susceptibility to volatility
in raw material prices, to adverse regulatory changes, and to
erratic rainfall. These rating weaknesses are partially offset by
the extensive experience of SRM's promoters in, and healthy growth
prospects for, the rice processing industry.
Outlook: Stable
CRISIL believes that SRM will continue to benefit over the medium
term from its promoters' experience in the rice processing
industry. The outlook may be revised to 'Positive' if SRM scales
up its operations and improves its profitability leading to
better-than-expected cash accruals, or its capital structure
improves significantly because of more-than-expected equity
infusion by promoters. Conversely, the outlook may be revised to
'Negative' if there is significant deterioration in the firm's
capital structure because of a larger-than-expected, debt-funded
capital expenditure or pressure on profitability.
About Sanmaan Rice
Set up in 1998, SRM mainly processes and sells basmati rice. Its
processing facility in Muktasar (Punjab) has a milling capacity of
4 tonnes per hour (tph) and a sorting capacity of 3 tph. The firm
earlier processed the Parimal grade of rice which was mainly sold
in the domestic market or supplied to government entities. Since
2008-09 (refers to financial year, April 1 to March 31), the firm
has shifted its focus to the processing of basmati rice. SRM
derives around 30% of its revenues from export sale and the rest
from sale of rice in the domestic market. In the domestic market,
the firm sells under its registered brand name, Punjab No.1. The
promoters are planning to modernise the firm's capacities during
2011-12.
SRM reported a profit after tax (PAT) of INR0.9 million on net
sales of INR231.4 million for 2009-10, against a PAT of INR0.8
million on net sales of INR155.0 million for 2008-09.
SKY STAR: CRISIL Assigns 'BB-' Rating to INR192.5MM LT Loan
-----------------------------------------------------------
CRISIL has assigned its 'BB-/Stable' rating to the bank facilities
of Sky Star.
Facilities Ratings
---------- --------
INR192.5 Million Long-Term Loan BB-/Stable(Assigned)
INR807.5 Million Proposed LT BB-/Stable(Assigned)
Bank Loan Facility
The rating reflects Sky Star's susceptibility to project
implementation risks of the ongoing projects and cyclicality in
the real estate sector. These rating weaknesses are partially
offset by the healthy demand for its ongoing project and adequate
coverage for loan against securitisation of lease rentals for its
HDFC Bank loan.
Outlook: Stable
CRISIL believes that Sky Star will maintain its cash flows and
debt protection metrics, supported by the steady cash flows from
the lease rentals from its first constructed building. The outlook
may be revised to 'Positive' in case of more-than-expected cash
flows from ongoing projects, most likely from part sale of the
second building, or promoters infusing significant capital to fund
the ongoing project. Conversely, the outlook may be revised to
'Negative' if Sky Star undertakes a larger-than-expected debt-
funded capital expenditure programme or if significant increase in
interest rates translates into substantially lower cushion in cash
flows from rental incomes for debt servicing.
About Sky Star
Sky Star is a partnership firm set up by the promoters of the
Skyline group and the Jain group to develop an office space in
Mumbai. The firm is developing two buildings with a cumulative
saleable area of 800,000 square feet. The firm would be renting
out this office space to companies on long-term leases. Sky Star
has almost finished constructing one building, with nearly 80% of
its space leased out with a five-year lock-in period.
The second building is in the initial stage of construction. The
expected cost of constructing it is INR1500 million. The firm is
planning to leverage the rental streams from the first building to
raise debt for partially funding this construction cost.
Sky Star reported a profit after tax (PAT) of INR13.0 million on
net sales of INR67.7 million for 2009-10 (refers to financial
year, April 1 to March 31) as against net loss of INR20.9 million
on a net sales of INR21.0 million for 2008-09.
TRIBHOVANDAS BHIMJI: Fitch Assigns 'BB+(ind)' National LT Rating
----------------------------------------------------------------
Fitch Ratings has assigned India's Tribhovandas Bhimji Zaveri
(Delhi) Pvt. Ltd. a National Long-Term rating of 'BB+(ind)'. The
Outlook is Stable. The agency has also assigned
'BB+(ind)'/'F4(ind)' ratings to TBZPL's INR240 million fund-based
working capital limit (including INR20 million adhoc limit).
The ratings reflect TBZPL's brand recall in the highly competitive
domestic gems and jewellery industry, its over a century-long
track record (since 1851), and the significant experience of its
promoters in the industry.
The ratings take into account TBZPL's high inventories (89% gold
in FY10) on account of its retail business and exposure to
volatility in gold prices. The latter is partly mitigated by its
strategy of replenishing stock outflow on a daily basis. However,
gold is highly marketable, thus enhancing the company's liquidity
position. The company has witnessed seasonal fluctuations in its
sales; usually high sales are recorded from November till July due
to the festive season and low sales are recorded from August till
October, leading to seasonal risks.
The ratings are also constrained by TBZPL's geographic
concentration, as it has only a single retail showroom in New
Delhi, its track record of low operating EBITDA margins (4%-4.3%
in FY07-FY10) and its high net leverage position (total adjusted
net debt/ operating EBITDAR) at 4.79x in FY10 (FY09: 5.67x). The
company has shown negative cash flow from operations over the past
four years due to its high inventory requirements.
A negative rating action may result from a steep and sustained
fall in gold prices which could lead to potential inventory losses
for TBZPL, any stress on its liquidity given its high working-
capital intensity and/or a further decline in the company's profit
margins which can deteriorate its net leverage position. A
positive rating action may result from consistent growth in
TBZPL's revenues and EBITDA margins, which can improve its net
leverage position, as well as from any geographic diversification
improving its business profile over the medium-to-long term.
Incorporated in 1999, TBZPL is a well-known gold jewellery
retailer. In FY10, it reported revenues of INR1,556 million
(FY09: INR1,225.6 million) and EBITDA margin of 4.3% in FY10
(FY09: 4.2%).
UBICO NETWORKS: Fitch Rates INR200 Million LT Loans at 'BB-(ind)'
-----------------------------------------------------------------
Fitch Ratings has assigned India's Ubico Networks Private Limited
a National Long-Term rating of 'BB-(ind)'. The Outlook is Stable.
The agency has also assigned Ubico's INR200 million long-term
loans a rating of 'BB-(ind)'.
Ubico's ratings reflect its early-mover advantage in India's fast-
growing niche in-building wireless solution (IBWS) industry. Its
credit profile benefits from strong revenue visibility due to its
long-term agreements (around 10 years), having strict contract
termination clauses, with mobile service providers. Also, Ubico is
one of the largest companies in IBWS industry, with coverage of
over 450 buildings. Fitch expects Ubico to report stable EBITDA
margins over the medium-to-long term as it does not bear operating
expenses like site rent and electricity costs for leased sites.
The agency also expects that the company will be able to raise
debt and/or equity to fund any capital shortfall till the
operations stabilize.
The ratings are constrained by Ubico's small scale of operations,
high financial leverage (net debt/EBITDA) and its lack of customer
and business diversification. The company generates almost all of
its revenues from IBWS and Fitch expects this trend to continue
over short-to-medium term. The agency considers the risk from the
entry of new companies offering IBWS, including some mobile tower
infrastructure providers.
Ubico provides carrier neutral wireless network solutions for
various applications. In the IBWS business, the company generates
revenues through network service charges from mobile service
providers for providing the network infrastructure. An increase in
its tenancy ratio would result in incremental revenues at a
negligible cost, and thus any movement in this ratio can lead to
significant movements in operating margins. Fitch notes that
Ubico's tenancy ratio at end-FY11 was about 1.7x. The agency also
notes that proactive roll-outs of network sites by the company in
the past led to an unsold inventory of 43 sites at end-April 2011,
out of a total of 463 sites. However, the company is no longer
proactively rolling-out the sites, and this move is expected to
result in lower unsold inventory over the short-to-medium term.
Positive rating guidelines include an improvement in Ubico's
tenancy ratio, leading to an improvement in its coverage ratios,
and diversification of its revenue base. Negative rating
guidelines include the company's deteriorating operational
parameters due to increased competition or lack of demand,
resulting in delayed improvement in its coverage ratios.
Ubico was incorporated in 2007 and started operations in FY09.
Apart from carrier neutral IBWS, the company also provides fibre
to the home - fibre to the unit, rooftop antenna solutions and
outdoor wireless solutions. In FY10, the company generated
revenues of INR79m (FY09: INR7m) and reported a net loss of INR30m
(FY09: a net loss of INR14m). The company expects FY11 unaudited
provisional revenues to be INR146m.
=================
I N D O N E S I A
=================
PERTAMINA (PERSERO): Moody's Assigns 'Ba1' Rating to US$1BB Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a definitive Ba1 senior
unsecured bond rating to the US$1 billion 5.25% notes due 2021
issued by PT Pertamina (Persero).
Ratings Rationale
Moody's definitive rating on this debt obligation confirms the
provisional rating assigned on May 9, 2011. Moody's rating
rationale was set out in a press release published on the same
day, and explored more fully in a Credit Opinion published on
May 10, 2011.
The bond proceeds will be used for financing capital expenditures
and for general corporate purposes.
As a Government-Related Issuer (GRI), Pertamina's Ba1 rating
reflects its baseline credit assessment (BCA) of '11', which maps
to Moody's global scale of Ba1, and the strong support and
dependence from the Indonesian government (Ba1/stable) under the
Joint Default Analysis approach (JDA).
Pertamina's BCA reflects the company's strategically important
position as Indonesia's national integrated oil & gas company,
contributing significant upstream production and accounting for
all the current refining capacity in the country. It operates at a
low-cost and moderate leverage, though the latter is expected to
rise with its planned investments.
The company is exposed to moderate regulatory risks associated
with a transitioning framework, and execution risks associated
with increasing investments in upstream exploration and
production, refineries, and potentially acquisitions.
Moody's views the credit profiles of Pertamina and the Indonesian
government as closely linked to each other, given Pertamina's
strategic role in oil & gas exploration and product distribution
for the country, as well as the government's tight supervision
over Pertamina's strategies and budgets.
The principal methodology used in rating PT Pertamina (Persero)
was the Global Integrated Oil & Gas Industry Methodology,
published November 2009.
PT Pertamina (Persero) is a 100% Indonesian government-owned,
fully-integrated oil and gas corporation, with operations in
upstream oil, gas and geothermal exploration and production,
downstream oil refining, marketing, distribution, transportation
and trading of petroleum products.
=========
J A P A N
=========
CSC SERIES 1: Moody's Cuts Ratings on Various Classes of Bonds
--------------------------------------------------------------
Moody's Japan K.K has downgraded its ratings on the Class A-2
through F-3 and Class X bonds issued by CSC Series 1 GK.
-- Class A-2/A-3, downgraded to A3 (sf); previously on Dec 8,
2009 Confirmed at Aa1 (sf)
-- Class B-2/B-3, downgraded to Baa3 (sf); previously on Dec 8,
2009 Confirmed at A2 (sf)
-- Class C-2, downgraded to B3 (sf); previously on Dec 2, 2010
Downgraded to Ba3 (sf)
-- Class D-2, downgraded to Caa2 (sf); previously on Dec 2,
2010 Downgraded to B3 (sf)
-- Class E-2/E-3, downgraded to Caa3 (sf); previously on Dec 2,
2010 Downgraded to Caa1 (sf)
-- Class F-3, downgraded to Ca (sf); previously on Dec 2, 2010
Downgraded to Caa3 (sf)
-- Class X, downgraded to A3 (sf); previously on Dec 8, 2009
Confirmed at Aa1 (sf)
Deal Name: CSC Series 1 GK
Class: Class A-2 through G-3 bonds and Class X bonds
Issue Amount (initial): JPY 36.2 billion
Dividend: Floating
Issue Date (initial): December 28, 2006
Final Maturity Date: November 2012
Underlying Asset (initial): 11 non-recourse loans backed by real
estate
Originator: Credit Suisse Principal Investments Limited, Tokyo
Branch (CSPI)
Arranger: Credit Suisse Securities (Japan) Limited
The bonds were issued by CSC, Series 1 GK. The 11 loans, which
were originated by CSPI, were transferred to the issuer and are
backed by 72 properties.
Payments will be made pro rata on both the Senior and the
Subordinated Bonds in cases of (1) payment at maturity, or (2)
prepayment by liquidation or refinancing of any of the loans.
In the event of a loan default, a write-down amount due to any
loss from the defaulting loan will be allocated in reverse
sequential order from the Class G to A bonds.
Two of the loans have been paid down in full so far. The principal
of one loan suffered partial impairment as a result of special
servicing.
The other eight loans are under special servicing. Of these eight,
six are backed by residential properties outside Tokyo; one is
backed by a retail property outside Tokyo; and the last is backed
by office/retail properties in and outside Tokyo.
The Class B-2 through Class G-3 and Class X interest shortfalls
emerged in interest payment date due November 2010 for the first
time.
After the first interest shortfall, the Class B-2/B-3 interest
shortfall was recovered in the interest payment date due February
2011.
However, interest shortfalls emerged again through the Class A-2
to Class G-3 (except Class X) in interest payment date due May
2011.
Rating Rationale
The rating action reflects these factors:
(1) This deal is structured so that special servicing
fee/liquidation fees are deducted from the interest collection
account instead of the principal collection account.
Therefore, any bond interest shortage will emerge in case
large special servicing fees / liquidation fees are deducted
from the interest collection account.
(2) The cash flow from retail property located outside Tokyo
backing a loan has declined as some tenants in its retail
property have not resumed due to the March 11 earthquake.
Also, reserves in the property trust account were withdrawn to
repair the backing property. Therefore, the interest of a loan
backed by a retail property will not pay as all cash flow from
the backing property will be allocated to cover the withdrawn
reserves until compensating for the withdrawn reserves.
(3) Interest shortage of a loan backed by office/retail properties
in and outside Tokyo may emerge as cash flow from the backing
properties may decline.
(4) As a result of (1) (2) (3) described above, bond interest
shortages are likely to continue.
(5) The recovery of the loans backed by CSC Series 1 GK may well
be lower than Moody's assumptions in December 2010 (the last
rating action on these notes), in light of special servicing
conditions and the types of properties/locations. Moody's has
thus re-assessed recovery assumptions, lowering them by 51%
from their initial assumptions.
(6) In light of Moody's re-assessment, losses on the remaining
balance of loans are highly likely.
Moody's did not receive or take into account any third party due
diligence reports on the underlying assets or financial
instruments related to the monitoring of this transaction in the
past six months.
L-JAC5 TRUST: Moody's Reviews Ratings for Possible Downgrade
------------------------------------------------------------
Moody's Japan K.K. has placed on review for possible downgrade the
ratings on the Class B through D-3, E-2 and F-2 Trust Certificates
issued by L-JAC 5 Trust.
The final maturity of the trust certificates occurs in August
2015.
-- Class B, Ba2 (sf) placed under review for possible
downgrade; previously, downgraded to Ba2 (sf) from A2 (sf)
on July 14, 2010
-- Class C, B3 (sf) placed under review for possible downgrade;
previously, downgraded to B3 (sf) from Ba3 (sf) on July 14,
2010
-- Class D-1, Caa2 (sf) placed under review for possible
downgrade; previously, downgraded to Caa2 (sf) from Ba2 (sf)
on July 14, 2010
-- Class D-2, Caa1 (sf) placed under review for possible
downgrade; previously, downgraded to Caa1 (sf) from Ba3 (sf)
January 20, 2010
-- Class D-3, B3 (sf) placed under review for possible
downgrade; previously, downgraded to B3 (sf) from Ba3 (sf)
on July 14, 2010
-- Class E-2, Caa2 (sf) placed under review for possible
downgrade; previously, downgraded to Caa2 (sf) from B1 (sf)
on January 20, 2010
-- Class F-2, Caa2 (sf) placed under review for possible
downgrade; previously, downgraded to Caa2 (sf) from B2 (sf)
on January 20, 2010
The L-JAC 5 Trust, effected in September 2007, represents the
securitization of 13 loans. Two loans were paid in full by their
maturity date. The transaction is now secured by eleven loans of
which ten loans are under special servicing.
According to the transaction structure, should an underlying loan
be accelerated and judged no longer recoverable by the servicer,
the unrecoverable amount of the defaulting loan will be recognized
as a loss.
The loss will be allocated to the lowest-rated class corresponding
to the defaulting loan in reverse order of sequential pay
priority.
Moody's needs to review the ratings, and revise the recovery
assumptions for the ten loans under special servicing, because the
proceeds and the rate of property dispositions with respect to
these ten loans have been lower than Moody's assumptions. As such,
the losses may be more than the level indicated in the present
ratings.
Moody's will reconsider the special servicer's strategies and the
prospects for collateral recovery of the properties backing loans
under special servicing and determine the rating levels.
SOFTBANK CORP: S&P Puts 'BB+' Corp. Credit Rating on Watch Pos.
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB+' long-term
corporate credit rating and existing issue ratings on Softbank
Corp. on CreditWatch with positive implications. "The CreditWatch
placement reflects our expectation that if the refinancing of
Softbank's whole of business securitization for its mobile
business is completed as planned, we will raise Softbank's ratings
one notch to 'BBB-' from 'BB+'. If the mobile business is
refinanced, we will fully incorporate it into our analysis on
Softbank, and our assessment of Softbank's financial risk profile
is likely to improve. We will resolve the CreditWatch placement
once we are certain the refinancing will be completed as planned,"
S&P stated.
Softbank raised funds to acquire Softbank Mobile Corp. through a
whole business securitization (WBS) in 2006. Standard & Poor's
recognizes that the cash flow from the mobile phone business will
be used for WBS repayments ahead of any other purpose. As a
result, Softbank Mobile's cash flow will not directly benefit the
company as long as the securitization exists. "We strongly expect
Softbank to refinance the WBS in the next couple of months. If the
refinancing is successfully completed, Softbank will be able to
freely access the cash flow from its mobile business, which
generated 65% of consolidated EBITDA in fiscal 2010 (ended
March 31, 2011). Because we will then be able to use consolidated
figures that include cash flow from the mobile business in our
analysis, we expect the company's financial risk profile to
improve," according to S&P.
Softbank has demonstrated strong operating performance, due in
large part to a strong contribution from its mobile business.
Standard & Poor's is of the opinion that the company will continue
to maintain steady earnings in the next one to two years, backed
by skillful marketing and the speedy acquisition of new
subscribers using smartphones. "In addition, we believe it is
likely to increase profits in its fixed-line business through cost
reductions. Furthermore, its Internet business, Yahoo! JAPAN, is
able to maintain improved earnings due to strong brand recognition
and steady revenue from Internet advertising. Softbank faces
constraints on capacity as the volume of traffic on its network
rises because of an increase in subscribers and data-intensive
products and services. The company intends to increase capital
expenditure significantly in the next two years to resolve this
issue. After considering the details of Softbank's investment plan
and its ability to generate stable cash flow, Standard & Poor's
believes that this capital expenditure is unlikely to pressure the
company's financial standing. Its ratio of consolidated debt to
EBITDA stood at 2.7x in fiscal 2010, and we expect the ratio to
improve further. Softbank has made a public commitment to become
debt free on a net basis (by the company's definition) by the end
of fiscal 2014," S&P elaborated.
While Standard & Poor's believes that Softbank's goal of becoming
debt free on a net basis by the end of fiscal 2014 will be a key
challenge for the company to achieve on an adjusted basis, which
includes lease and other debt-like obligations, S&P sees the
commitment as positive for Softbank's creditworthiness because it
increases the conservativeness of the company's financial policy.
"Softbank is structured as a holding company, but we do not expect
the structural subordination of existing senior unsecured bonds to
cause any notching down of the ratings on them even after the
refinancing of the WBS is completed. After the refinancing,
priority liabilities at operating subsidiaries will decrease, and
the ratio of priority liabilities to total assets is likely to be
less than 20%--our threshold for notching down the issue ratings,"
S&P continued.
According to S&P, "We will resolve the CreditWatch placement if we
can confirm the progress and certainty of the refinancing. If the
WBS refinancing is completed as planned, we would expect to raise
the long-term ratings on Softbank a notch to 'BBB-'."
TOKYO ELECTRIC: Creditor Banks Not Considering Debt Write Off
-------------------------------------------------------------
Kyodo News reports that Japanese Bankers' Association Chairman
Masayuki Oku said Thursday that the creditor banks of Tokyo
Electric Power Co. do not intend to write off their debts to the
embattled utility, apparently turning a deaf ear to the
government, which has urged the lenders to do their utmost to help
TEPCO before it seeks state support.
"We are not considering at all either forgiving debt or lowering
interest rates on the loans to the operator of the tsunami-hit
Fukushima Daiichi nuclear power plant," Kyodo News quotes Mr. Oku
as saying.
Kyodo says the comment by Mr. Oku, who also heads Sumitomo Mitsui
Financial Group Inc., came after the government's top spokesman,
Yukio Edano, suggested that creditor banks forgiving debt could
possibly be a precondition for the state to implement measures to
financially support Tokyo Electric, which faces a huge amount of
compensation claims following the disaster.
About TEPCO
The Tokyo Electric Power Co., Inc., (TEPCO) --
http://www.tepco.co.jp/en/index-e.html-- 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 the utility known as Tepco is battling
radiation leaks at the Fukushima Dai-Ichi power plant north of
Tokyo after a March 11 earthquake and tsunami knocked out its
cooling systems, causing the biggest atomic accident in 25 years.
More than 50,000 households were forced to evacuate and Bank of
America Corp.'s Merrill Lynch estimates Tepco may face
compensation claims of as much as JPY11 trillion ($135 billion).
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: Posts JPY1.24-Tril. Net Loss; President to Resign
-----------------------------------------------------------------
The Japan Times reports that Tokyo Electric Power Co. on Friday
reported a record group net loss of JPY1.24 trillion for fiscal
2010, compared with net income of JPY133.7 billion the previous
year.
Tepco increased sales by 7% to JPY5.36 trillion and operating
profit by 40.5% to JPY399.6 billion.
Tepco didn't include what are expected to be massive compensation
payments to people and companies harmed by the accident at the
Fukushima No. 1 nuclear power plant, The Japan Times says.
According to the report, President Masataka Shimizu announced he
will resign after the company's June 28 shareholders' meeting to
take responsibility for the disaster triggered by the March 11
earthquake and tsunami. Toshio Nishizawa, a veteran from Tepco's
planning division, will assume the presidency, The Japan Times
notes.
"Because of the Fukushima accident this time, we have damaged the
trust of nuclear power plant safety and have caused great concerns
to people in society. I'd like to take responsibility," The Japan
Times quotes Mr. Shimizu as saying.
The Japan Times says Tepco also disclosed plans to streamline
management and to issue 20 percent pay cuts to regular employees
and 40 to 60 percent pay cuts to executives. It also will sell off
JPY600 billion in assets.
Along with Mr. Shimizu, Vice President Sakae Muto, who has been in
charge of the nuclear plant business, will also step down, The
Japan Times adds.
Chairman Tsunehisa Katsumata will continue to oversee the crisis.
About TEPCO
The Tokyo Electric Power Co., Inc., (TEPCO) --
http://www.tepco.co.jp/en/index-e.html-- 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 the utility known as Tepco is battling
radiation leaks at the Fukushima Dai-Ichi power plant north of
Tokyo after a March 11 earthquake and tsunami knocked out its
cooling systems, causing the biggest atomic accident in 25 years.
More than 50,000 households were forced to evacuate and Bank of
America Corp.'s Merrill Lynch estimates Tepco may face
compensation claims of as much as JPY11 trillion ($135 billion).
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.
====================
N E W Z E A L A N D
====================
DON HA REAL ESTATE: Receivers Sell Firm for NZ$1.35 Million
-----------------------------------------------------------
BusinessDay.co.nz reports that the receivers of Don Ha Real
Estate, the south Auckland real estate agency owned by Don Ha,
have sold the company for NZ$1.35 million -- back to another
company of which he is the principal.
BusinessDay.co.nz discloses that receivers Tim Downes and David
Ruscoe of Grant Thornton were appointed in March by Kiwibank which
had a general security agreement over Don Ha Real Estate in
relation to NZ$7 million worth of mortgage debts to other
companies within the Don Ha group.
The debts were over 50 investment properties in south Auckland
that Mr. Ha owned and rented out, but had fallen behind on the
payments for, BusinessDay.co.nz notes.
According to the report, Mr. Downes said the real estate agency --
for which Ray White pulled the franchise on when it tipped into
receivership -- had been operating profitably and the core asset
was its lucrative property management side.
Top One, a company owned by family and friends of Ha, was the
successful bidder for the real estate agency and Ha is now back
running the agency again.
JEAN JONES: Receiver Sells 13 Jean Jones Stores
-----------------------------------------------
BusinessDay.co.nz reports that the receiver of women's clothing
chain Jean Jones has sold its 13 stores.
BusinessDay.co.nz says Deloitte's Murray Frost confirmed Friday
that the business was sold to Jean Jones' general manager Gina
Caulfield and business partner Keri Condon.
According to BusinessDay.co.nz, the new owners will continue to
operate the 13 Jean Jones stores and the factory outlet store in
East Tamaki, Auckland.
The receiver said most of the staff will continue to be employed
by the new company, BusinessDay.co.nz reports.
Jean Jones was placed into receivership in October last year owing
creditors about NZ$2.9 million. The company was owned by
Gisborne-based Rockforte Finance owners Nigel O'Leary and John
Gardner when receivers were appointed.
=================
S I N G A P O R E
=================
CFS TECHNOLOGIES: Creditors' Proofs of Debt Due June 20
-------------------------------------------------------
Creditors of CFS Technologies Pte Ltd., which is in members'
liquidation, are required to file their proofs of debt by June 20,
2011, to be included in the company's dividend distribution.
The company's liquidators are:
Chee Yoh Chuang
Abuthahir Abdul Gafoor
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
CHARISLAND PTE: Creditors' Meeting Set for May 26
-------------------------------------------------
Charisland Pte Ltd, which is in liquidation, will hold a meeting
for its creditors on May 26, 2011, at 10:00 a.m., at One Raffles
Quay, North Tower, Level 18, in Singapore 048583.
Agenda of the meeting includes:
a. to receive the Liquidators' report on the progress of the
liquidation;
b. to consider the appointment of a Committee of Inspection
pursuant to section 277 of the Companies Act (Cap. 50), if
necessary; and
c. consider any other matters to be brought before the meeting.
The company's liquidator is:
Aaron Loh Cheng Lee
c/o One Raffles Quay
North Tower, Level 18
Singapore 048583
DIAMOND MARINE: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on April 29, 2011, to
wind up the operations of Diamond Marine Services Pte Ltd.
Standard Chartered Bank filed the petition against the company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road, #06-11
Singapore 069118
GOLDEN JAGUAR: First Creditors' Meetings Set for June 1
-------------------------------------------------------
Golden Jaguar Deluxe Pte Ltd, which is in liquidation, will hold
their first meeting for its creditors on June 1, 2011, at 10:00
a.m., at One Raffles Quay, North Tower, Level 18, in Singapore
048583.
Agenda of the meeting includes:
a. to receive an update on the progress of liquidation;
b. to obtain the wishes of the creditors in respect of the
allegations made in relation to Suit No. 341 of 2009/K;
c. to approve the Liquidators' fees; and
d. discuss other business.
The company's liquidator is:
Seshadri Rajagopalan
c/o Ernst & Young Solutions LLP
One Raffles Quay
North Tower, Level 18
Singapore 048583
KINDERGARTEN & CHILDCARE: Creditors Get 100% Recovery on Claims
---------------------------------------------------------------
The Kindergarten & Childcare Centres' Staff Union declared the
first and final dividend to creditors on May 10, 2011.
The company paid 100% to the received claims.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road, #06-11
Singapore 069118
LZ BUILDERS: Court to Hear Wind-Up Petition May 27
--------------------------------------------------
A petition to wind up the operations of LZ Builders Pte Ltd will
be heard before the High Court of Singapore on May 27, 2011, at
10:00 a.m.
Foo AH Fook @ AH Fook, a sole-proprietor trading as Lip
Chin Engineering, filed the petition against the company on May 4,
2011.
The applicants' solicitor is:
M/s David Ong & Co, Advocates & Solicitors
151 Chin Swee Road
#08-14 Manhattan House
Singapore 169876
PACRIM INVESTMENTS: Court Enters Wind-Up Order
----------------------------------------------
The High Court of Singapore entered an order on April 29, 2011, to
wind up the operations of Pacrim Investments Pte Ltd.
Standard Chartered Bank filed the petition against the company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road, #06-11
Singapore 069118
PROSPERITY INTERNATIONAL: Creditors' Proofs of Debt Due May 30
--------------------------------------------------------------
Creditors of Prosperity International Logistics (S) Pte Ltd, which
is in liquidation, are required to file their proofs of debt by
May 30, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Kung Seah Lim
c/o 336 Smith Street #05-310
New Bridge Centre
Singapore 050336
SYMBIOSIS ENGINEERING: Creditors Get 17.78446% Recovery on Claims
-----------------------------------------------------------------
Symbiosis Engineering Pte Ltd declared the first and final
dividend to creditors on May 13, 2011.
The company paid 17.78446% to the received claims.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road, #06-11
Singapore 069118
TSKLINE (S): Members' Final Meeting Set for June 22
---------------------------------------------------
Members of TSKLine (S) Pte Ltd will hold their final meeting on
June 22, 2011, at 10:00 a.m., at 25 International Business Park
#04-22/26 German Centre, in Singapore 609916.
At the meeting, Steven Tan Chee Chuan, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
TUNG GUAN: Creditors' Proofs of Debt Due June 3
-----------------------------------------------
Creditors of Tung Guan Company Private Limited, which is in
liquidation, are required to file their proofs of debt by June 3,
2011, to be included in the company's dividend distribution.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road, #06-11
Singapore 069118
*********
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 ***