/raid1/www/Hosts/bankrupt/TCRAP_Public/110607.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, June 7, 2011, Vol. 14, No. 111
Headlines
A U S T R A L I A
3D WORLD: Publishes Final Issue, Parent Pulls Plug
BURRUP FERTILISERS: Court Allows P. Oswal to View Selected Docs
C H I N A
CHINA GINSENG: Posts US$223,600 Net Loss in March 31 Quarter
DAHUA INC: Posts US$141,900 Net Loss in Q1 2011
YOU ON DEMAND: Posts US$2.6 Million Net Loss in Q1 2011
H O N G K O N G
BIOPACK ENVIRONMENTAL: Cancels Sale/Purchase Deal with Well Talent
CHRISTIAN LABOUR: Lau Wai Yung Alice Steps Down as Liquidator
CONLAND LIMITED: Commences Wind-Up Proceedings
EVERGAIN (ASIA): Creditors' Proofs of Debt Due July 4
EVERGAIN (HK): Creditors' Proofs of Debt Due July 4
FENG YA TEXTILES: Placed Under Voluntary Wind-Up Proceedings
INTERTRANS CONSULTING: Commences Wind-Up Proceedings
JET ENERGY: Creditors' Proofs of Debt Due July 4
KENNEX INDUSTRIES: Creditors' Proofs of Debt Due July 5
LINK HEALTHY: Creditors' First Meeting Set for June 15
MAN PO: Placed Under Voluntary Wind-Up Proceedings
PROWIN LABORATORIES: Creditors' Proofs of Debt Due July 8
QUINWAY COMPANY: Chan and Chow Step Down as Liquidators
TECHDURA LIMITED: Members' Final General Meeting Set for July 5
VERACITY INVESTMENT: Creditors' Proofs of Debt Due July 4
WALLA LIMITED: Creditors' Proofs of Debt Due July 4
I N D I A
ADVANT I.T.PARK: CRISIL Rates INR560-Mil. Term Loans at 'B+'
ARORA INDUSTRIES: CRISIL Places 'BB' Rating on INR124.5-Mil. Loan
CHANDRIKA DAIRY: CRISIL Assigns 'B+' Rating to INR50-Mil. LT Loan
FEDERAL BRANDS: CRISIL Assigns 'BB+' Rating to INR85-Mil. LT Loan
GAJRAJ AUTOMOBILES: CRISIL Rates INR100-Mil. Cash Credit at 'B+'
JK SURFACE: CRISIL Rates INR15-Mil. Rupee Term Loan at 'BB'
LEGEND ESTATES: CRISIL Rates INR170-Mil. Cash Credit at 'BB+'
LIMTEX TEA: CRISIL Assigns 'D' Rating to INR62.3-Mil. LT Loan
MEHRAB N IRANI: CRISIL Rates INR60.00-Mil. Cash Credit at 'B'
ORIENTAL RUBBER: CRISIL Reaffirms 'BB+' Rating on INR142.7MM Loan
PARTAP FABRICS: CRISIL Assigns 'B+' Rating to INR170MM Term Loan
SAHASTRA PROPERTIES: CRISIL Reaffirms 'BB+' Rating on INR94MM Loan
SAXENA MARINE-TECH: CRISIL Assigns 'BB' Rating on Various Debts
SRI KARVEMBU: CRISIL Assigns 'D' Rating to INR75MM Long Term Loan
STEDMAN PHARMACEUTICALS: CRISIL Reaffirms INR10.2MM Loan at 'BB'
SUPER STAR: CRISIL Assigns 'BB-' Rating to INR24MM Rupee Term Loan
SUPERTECH LIMITED: CRISIL Reaffirms 'B' Rating on INR1.68BB Loan
ULTRACAB (INDIA): CRISIL Assigns 'C' Rating to INR20MM LT Loan
ULTRA DIMENSIONS: CRISIL Cuts Rating on INR100MM Credit to 'BB'
I N D O N E S I A
CHANDRA ASRI: Moody's Sees No Rating Impact From Covenant Changes
J A P A N
TOKYO ELECTRIC: Expects to Post JPY570 Billion Loss in 2012
TOKYO ELECTRIC: TSE Head Recommends Court-Led Restructuring
* JAPAN: March 11 Quake Causes 145 Firms to Collapse
K O R E A
KUMHO ASIANA: Petrochem Unit Chief Summoned Over Slush Fund
N E W Z E A L A N D
NEW ZEALAND GLOBAL: In Liquidation; Buyers Line Up
S I N G A P O R E
ALLIED CONTAINER: Court to Hear Wind-Up Petition June 15
CHUAN SOON: Creditors' Proofs of Debt Due June 17
ENGAGE ELECTRONICS: Creditors Get 100% Recovery on Claims
GIBBOUS HOLDINGS: Court to Hear Wind-Up Petition June 15
GREENLIFE HERBAL: Creditors Get 0.11718% Recovery on Claims
INQVESTMENTS PTE: Court Enters Wind-Up Order
X X X X X X X X
* BOND PRICING: For the Week May 30 to June 3, 2011
- - - - -
=================
A U S T R A L I A
=================
3D WORLD: Publishes Final Issue, Parent Pulls Plug
--------------------------------------------------
According to RA News, the long-running Australian dance music
magazine 3D World will have published its final issue in late May.
After what has been a turbulent two years for the publication, the
magazine's owners, Street Press Australia, have decided to pull
the plug, the report notes.
The trouble began in 2009, when 3D World's then parent company,
Destra, was forced into receivership, with ownership of the
magazine itself eventually landing in the hands of Street Press
Australia, RA News relates. Since then, RA News discloses, 3D
underwent extensive format and content changes, while also
spreading from its original Sydney base to be published in
Melbourne and Brisbane on a weekly basis.
"This is a reflection of the current scene," according to a
statement issued by Street Press Australia, RA News notes.
"Electronic dance music and hip hop are no longer their own
subcultures but fit with the general music scene," the statement
added.
Founded in 1989, the magazine is currently one of the oldest
Australian music magazines, with over 1,000 issues published in
total, each covering both local and international music.
BURRUP FERTILISERS: Court Allows P. Oswal to View Selected Docs
---------------------------------------------------------------
9news reports that Justice Michael Barker has granted Pankaj Oswal
the right to view the books of Burrup Holdings Limited (BHL) and
Burrup Fertilisers, companies which Mr. Oswal he created but are
now under receivership.
The ANZ Banking Group appointed receiver PPB Advisory in December
to the Burrup entities, claiming evidence of financial
irregularities, according to 9news. The move followed an ongoing
stoush between Mr. Oswal, who was Burrup's chairman and managing
director, and Norway's Yara International, a 35% shareholder and
customer of the ammonia hydrate plant in the Pilbara, the report
relates.
9news, however, notes that Justice Barker did not allow Mr.
Oswal's agents access to all Burrup documents and financial
records, saying some material should remain off limits. "That
includes material relating to the receivers' sale of Burrup's
assets and shares," Judge Barker said, according to the report.
9news notes that Justice Barker said allowing inspection of such
documents could "unreasonably interfere with, or threaten the
assets" the receivers were charged with administering.
Moreover, the judge ordered Mr. Oswal to sign a written
undertaking to meet the reasonable expenses of Burrup in making
the documents available for inspection, with the undertaking
secured with a AU$50,000 payment, 9news relays.
About Burrup Fertilisers
Headquartered in Karratha in Western Australia, Burrup Fertilisers
Pty Ltd -- http://www.bfpl.com.au/-- is Australia's largest
ammonium producer. The company has a production capacity of 850-
tonnes of liquid ammonia a year.
As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 20, 2010, The Australian said Burrup Fertilisers Pty Ltd has
been placed into receivership with debts of about AU$800 million.
ANZ Bank appointed PPB Advisory as receivers to Burrup
Fertilisers. ANZ has also appointed the same receivers, PPB
Advisory, over shares held by members of the Oswal Group in
related company, Burrup Holdings. ANZ is alleging "evidence
of financial irregularities" as well as the usual default triggers
relating to debt facilities established between 2002 and 2007.
=========
C H I N A
=========
CHINA GINSENG: Posts US$223,600 Net Loss in March 31 Quarter
------------------------------------------------------------
China Ginseng Holdings, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of US$223,630 on US$2.0 million of
revenue for the three months ended March 31, 2011, compared with a
net loss of US$149,132 on US$170,893 of revenue for the
corresponding period ended March 31, 2010. The revenue increase
was primarily attributable to the sales of ginseng and ginseng
juice, which had not occurred in the same period of 2010.
Total sales increased from US$261,088 for the nine months ended
March 31, 2010, to US$3.1 million for the nine months ended
March 31, 2011.
The Company had a net loss of US$672,237 for the nine months ended
March 31, 2011, versus a net loss of US$224,896 for the nine
months ended March 31, 2010.
The Company's balance sheet at March 31, 2011, showed US$9.4
million in total assets, US$4.1 million in total liabilities, and
stockholders' equity of US$5.3 million.
The Company has accumulated deficits of US$2.4 million and
US$1.7 million as of March 31, 2011, and June 30, 2010,
respectively.
The Company says it foresees uncertain conditions relating to its
ability to obtain working capital and operate successfully.
"[E]ven if the Company does raise sufficient capital to support
its operating expenses and generate adequate revenues, there can
be no assurances that the revenues will be sufficient to enable it
to develop business to a level where it will generate profits and
cash flows from operations," the Company said in the filing.
These matters raise substantial doubt about the Company's ability
to continue as a going concern.
A copy of the Form 10-Q is available at http://is.gd/5q4noq
Changchun City, China-based China Ginseng Holdings, Inc., was
incorporated under the laws of Nevada on June 24, 2004. Prior to
August 2010, the Company was engaged primarily in the sale of
fresh and dried Ginseng. Recently, the Company has decided to
refocus its business on the sale of Ginseng beverages and wines.
DAHUA INC: Posts US$141,900 Net Loss in Q1 2011
-----------------------------------------------
Dahua Inc. filed its quarterly report on Form 10-Q, reporting a
net loss of US$141,883 for the three months ended March 31, 2011,
compared with a net loss of US$149,398 for the same period last
year.
The Company began Phase I of its first real estate project, Dahua
Garden, which consists of 75 luxury residential units, in
July 2003. The construction was completed in December 2005.
For the three months ended March 31, 2011, and 2010, the Company
didn't recognize any sales revenues.
The Company's balance sheet at March 31, 2011, showed
US$19.7 million in total assets, US$16.9 million in total
liabilities, all current, and stockholders' equity of US$2.8
million.
Child, Van Wagoner & Bradshaw, PLLC, in Salt Lake City, Utah,
expressed substantial doubt about Dahua's ability to continue as a
going concern, following the Company's 2010 results. The
independent auditors noted that the Company has cash flow
constraints, an accumulated deficit, and has suffered recurring
losses from operations.
A copy of the Form 10-Q is available at http://is.gd/GYbk9f
Beijing, China-based Dahua Inc. was incorporated on March 8, 2002,
in the State of Delaware under the name of Norton Industries Corp.
as a blank check company for the purpose of either merging with or
acquiring an operating company with operating history and assets.
In June 2002, the Company filed a registration statement on Form
10-SB with the Securities and Exchange Commission in order to
become a Section 12(g) registered company under the Securities
Exchange Act of 1934, as amended. The registration statement
became effective on or about Aug. 10, 2002.
At present, the Company, through its 80% owned subsidiary Beijing
Dahua Real Estate Development Ltd., engages in the business of
development, construction and sale of luxury single-family homes
in Beijing and its circumjacent areas, in China.
YOU ON DEMAND: Posts US$2.6 Million Net Loss in Q1 2011
-----------------------------------------------------
YOU On Demand Holdings, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of US$2.65 million on US$1.70 million
of revenue for the three months ended March 31, 2011, compared
with a net loss of US$1.07 million on US$1.88 million of revenue
for the same period last year.
The Company's balance sheet at March 31, 2011, showed
US$28.67 million in total assets, US$10.35 million in total
liabilities, US$5.21 million of convertible redeemable preferred
stock, and stockholders' equity of US$13.11 million.
UHY LLP, in Albany, New York, expressed substantial doubt about
YOU On Demand Holdings' ability to continue as a going concern,
following the Company's 2010 results. The independent auditors
noted that the Company has incurred significant losses during 2010
and 2009 and has relied on debt and equity financings to fund
their operations.
A copy of the Form 10-Q is available at http://is.gd/gC122e
New York City-based YOU On Demand Holdings, Inc. (formerly China
Broadband, Inc.) operates in the media segment, through its
Chinese subsidiaries and variable interest entities ("VIEs"),
(1) a business which provides integrated value-added service
solutions for the delivery of pay-per-view ("PPV"), video-on-
demand ("VOD"), and enhanced premium content for cable providers,
(2) a cable broadband business based in the Jinan region of China
and (3) a television program guide, newspaper and magazine
publishing business based in the Shandong region of China.
================
H O N G K O N G
================
BIOPACK ENVIRONMENTAL: Cancels Sale/Purchase Deal with Well Talent
------------------------------------------------------------------
Biopack Environmental Solutions Inc. entered into a cancellation
agreement with Well Talent Technology Limited, pursuant to which
the Company cancelled its agreement dated July 9, 2010, with Well
Talent for the sale and purchase of the shares and shareholders'
loans of the Company's two subsidiaries, Roots Biopack Limited and
Biopack (Intellectual Property) Limited. Each of Well Talent
Technology and Biopack agreed to release the other from any claims
under the cancelled agreement.
About Biopack Environmental
Kowloon, Hong Kong-based Biopack Environmental Solutions Inc.
develops, manufactures, distributes and markets bio-degradable
food containers and disposable industrial packaging for consumer
products. The Company supplies its biodegradable food containers
and industrial packaging products to multinational corporations,
supermarket chains and restaurants located across North America,
Europe, and Asia.
The Company has a factory in Jiangmen City in the People's
Republic of China.
The Company reported a net loss of US$2.4 million on US$364,417 of
revenue for 2010, compared with net income of US$867,547 on
US$921,281 of revenue for 2009.
The Company's balance sheet at March 31, 2011, showed US$959,834
in total assets, US$3.45 million in total liabilities, and a
US$2.49 million total stockholders' deficit.
Going Concern
As reported by the TCR on April 26, 2011, Wong Lam Leung & Kwok
C.P.A. Limited, in Hong Kong, expressed substantial doubt about
Biopack Environmental's ability to continue as a going concern.
The independent auditors noted that the Company incurred a net
loss of US$2.4 million for the year ended Dec. 31, 2010, and had
an accumulated deficit of US$7.3 million and a working capital
deficit of US$2.2 million as of Dec. 31, 2010.
In the Form 10-Q, the Company noted that it had a loss for the
three month period ended March 31, 2011, of US$472,596 and, on
March 31, 2011, it had an accumulated deficit of US$7,749,519 and
a working capital deficit of US$2,287,474. These conditions raise
substantial doubt as to the Company's ability to continue as a
going concern, according to the quarterly report.
The Company said that its future is dependent upon its attaining
profitable operations and raising the capital it will require in
order to achieve profitable operations through the issuance of
equity securities, borrowings or a combination thereof.
CHRISTIAN LABOUR: Lau Wai Yung Alice Steps Down as Liquidator
-------------------------------------------------------------
Lau Wai Yung Alice stepped down as liquidator of Christian Labour
Church Limited on June 3, 2011.
CONLAND LIMITED: Commences Wind-Up Proceedings
----------------------------------------------
Members of Conland Limited, on May 21, 2011, passed a resolution
to voluntarily wind up the company's operations.
The company's liquidator is:
Fung Kit Yee
Unit 1603-1606 Connaught Road
Central, Sheung Wan
Hong Kong
EVERGAIN (ASIA): Creditors' Proofs of Debt Due July 4
-----------------------------------------------------
Creditors of Evergain (Asia) Holding Co Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by July 4, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on May 30, 2011.
The company's liquidator is:
Lau Hin Chi
19th Floor, Cameron Commercial Centre
468 Hennessy Road
Causeway Bay, Hong Kong
EVERGAIN (HK): Creditors' Proofs of Debt Due July 4
---------------------------------------------------
Creditors of Evergain (Hong Kong) Holding Co Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by July 4, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Chan Wai Hon Alan
Rooms 2808-10, 28/F
Shui On Centre, 6-8 Harbour Road
Wanchai, Hong Kong
FENG YA TEXTILES: Placed Under Voluntary Wind-Up Proceedings
------------------------------------------------------------
At an extraordinary general meeting held on May 25, 2011,
creditors of Feng Ya Textiles Limited resolved to voluntarily wind
up the company's operations.
The company's liquidator is:
Lau Yui Wing
2201, Hong Kong Trade Centre
161 Des Voeux Road
Central, Hong Kong
INTERTRANS CONSULTING: Commences Wind-Up Proceedings
----------------------------------------------------
UPS SCS Holding Limited, the sole member of Intertrans Consulting
Services Limited, has resolved to voluntarily wind up the
company's operations.
JET ENERGY: Creditors' Proofs of Debt Due July 4
------------------------------------------------
Creditors of Jet Energy Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by July 4,
2011, to be included in the company's dividend distribution.
The company's liquidator is Lam Wai Hay.
KENNEX INDUSTRIES: Creditors' Proofs of Debt Due July 5
-------------------------------------------------------
Creditors of Kennex Industries Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by July 5, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Lau Hin Chi
19th Floor, Cameron Commercial Centre
468 Hennessy Road
Causeway Bay, Hong Kong
LINK HEALTHY: Creditors' First Meeting Set for June 15
------------------------------------------------------
Creditors of Link Healthy Limited will hold their first meeting on
June 15, 2011, at 3:00 p.m., for the purposes provided for in
Sections 241 (as modified by Section 228A(8)), 242, 243, 244 and
255A of the Companies Ordinance.
The meeting will be held at Room 5, 4/F., South Tower, 41
Salisbury Road, YMCA of Hong Kong, Tsimshatsui, Kowloon, in Hong
Kong.
MAN PO: Placed Under Voluntary Wind-Up Proceedings
--------------------------------------------------
At an extraordinary general meeting held on May 21, 2011,
creditors of Man Po Hong Limited resolved to voluntarily wind up
the company's operations.
The company's liquidators are:
Liu Chi Tat Stephen
Kwan Pak Kong
Rm. 1405-8, 14/F
C C Wu Building
302-308 Hennessy Road
Wanchai, Hong Kong
PROWIN LABORATORIES: Creditors' Proofs of Debt Due July 8
---------------------------------------------------------
Creditors of Prowin Laboratories Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by July 8, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Wong Chun Chung
Room 501, 5/F
Hing Yip Commercial Centre
272-284 Des Voeux Road
Central, Hong Kong
QUINWAY COMPANY: Chan and Chow Step Down as Liquidators
-------------------------------------------------------
Chan Shu Kin and Chow Chi Tong stepped down as liquidators of
Quinway Company Limited on June 3, 2011.
TECHDURA LIMITED: Members' Final General Meeting Set for July 5
---------------------------------------------------------------
Members of Techdura Limited will hold their final general meeting
on July 5, 2011, at 11:00 a.m., at 40th Floor, Manulife Tower, 169
Electric Road, North Point, in Hong Kong.
At the meeting, Zoltan Peter Szabo, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
VERACITY INVESTMENT: Creditors' Proofs of Debt Due July 4
---------------------------------------------------------
Creditors of Veracity Investment Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by July 4, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on May 25, 2011.
The company's liquidator is:3
Philip Brendan Gilligan
7th Floor, Alexandra House
18 Chater Road
Central, Hong Kong
WALLA LIMITED: Creditors' Proofs of Debt Due July 4
---------------------------------------------------
Creditors of Walla Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by July 4,
2011, to be included in the company's dividend distribution.
The company's liquidator is Lam Wai Hay.
=========
I N D I A
=========
ADVANT I.T.PARK: CRISIL Rates INR560-Mil. Term Loans at 'B+'
------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the term loans
facility of Advant I.T. Park Pvt Ltd.
Facilities Ratings
---------- -------
INR560.0 Million Term Loans B+/Stable (Assigned)
The rating reflects Advant's weak financial flexibility,
negligible cash accruals vis-a-vis debt obligations, absence of
significant lease or sale contracts, and susceptibility to
cyclicality in the real estate sector. These rating weaknesses
are partially offset by demonstrated track record of financial
support to Advant from its promoters for timely servicing of debt.
Outlook: Stable
CRISIL believes that Advant's financial risk profile will remain
hinged on its promoters' ability to continue to infuse funds from
their own resources to help the company service its debt in a
timely manner. CRISIL believes that AIPL's revenues and cash
accrual generation will be gradual, given the cautious expansion
of information technology (IT), IT-enabled services, and other
companies qualified to lease space at the company's IT Park. The
outlook may be revised to 'Positive' in case of an earlier-than-
expected recovery in Advant's financial risk profile, particularly
cash accruals, on the back of better-than-expected lease of office
space or sale of floor space, with repayment of its debt as per
schedule. Conversely, the outlook may be revised to negative if
saleability of the project is adversely affected or the company
aggressively debt-funds its new projects, which may deteriorate
its capital structure and debt protection metrics.
About Advant I.T. Park
Advant, incorporated in 2004, has set up a software technology
park in Noida (Uttar Pradesh). The company is promoted by Mr.
Sunil Sharma, Shri OP Arora and Shri PR Batra, who are also on the
board of the company. The entire project is being executed by the
company in two phases, wherein Tower I has been commercially
launched in June 2010 and Tower II is expected to be launched in
the last quarter of 2011-12 (refers to financial year, April 1 to
March 31). The location of the project is right on the Noida-
Greater Noida Express Highway.
ARORA INDUSTRIES: CRISIL Places 'BB' Rating on INR124.5-Mil. Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the long-term bank
facilities of Arora Industries.
Facilities Ratings
---------- -------
INR240.0 Million Cash Credit Facility BB/Stable (Assigned)
INR124.5 Million Term Loan BB/Stable (Assigned)
The rating reflects the Arora group's average financial risk
profile, marked by high gearing, and weak debt protection metrics,
susceptibility to volatility in raw material prices, and risks
related to the commodity nature of the business These rating
weaknesses are partially offset by the group's established
distribution network across the country and extensive experience
of the promoters in the fabric manufacturing business.
To arrive at its ratings, CRISIL has combined the financial and
business risk profiles of AI and its group company Arora Knit Fab
Pvt Ltd, together referred to as the Arora group. This is because
both entities are under common promoters and in the same line of
business and one company can extend necessary support to other
group company.
Outlook: Stable
CRISIL believes that the AI's business risk profile will continue
to remain stable over the near term, marked by steady growth in
revenues and profitability. The outlook of the group may be
revised to 'Positive' if it is able to scale up its operations by
stabilizing its enhanced facilities and achieving better than
expected off take, profitability and cash accruals leading to
significant improvement in its financial risk profile. Conversely,
the outlook may be revised to 'Negative', in case of a delay in
commissioning the debt-funded capital expenditure programme being
currently undertaken by the group, thereby weakening its liquidity
or the group generates lower-than-expected revenues and
profitability, weakening its debt-protection metrics.
About Arora Industries
The Arora group comprises two group companies: AI, a partnership
firm, set up in 2007,. AI is engaged in manufacturing of polyester
fabric, mink blankets and garments. It also has a group company -
Arora Knit Fab Pvt Ltd, incorporated in 1998, which is also
engaged in the same line of business.
Both the group entities are based in Ludhiana (Punjab), and are
promoted by Mr. Mohinder Singh Arora. Mr. Mohinder Singh and his
son, Mr. Ravinder Pal Singh, handle the group's daily operations.
The AI reported a profit after tax (PAT) of INR5.8 million on net
sales of INR962.6 million for 2009-10 (refers to financial year,
April 1 to March 31) as against a PAT of INR11.1 million on net
sales of INR552.4 million for 2008-09.
CHANDRIKA DAIRY: CRISIL Assigns 'B+' Rating to INR50-Mil. LT Loan
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank
facilities of Chandrika Dairy Industries Pvt Ltd.
Facilities Ratings
---------- -------
INR40.0 Million Cash Credit B+/Stable (Assigned)
INR50.0 Million Long-Term Loan B+/Stable (Assigned)
INR5.0 Mil. Bank Guarantee Facility P4 (Assigned)
The ratings reflect CDPL's below-average financial risk profile,
marked by small net worth, high gearing, and weak debt protection
metrics, and small scale of operations with customer concentration
in revenue profile. The ratings also reflect the company's
susceptibility to adverse regulatory changes and epidemic-related
factors. These weaknesses are partially offset by the extensive
experience of CDPL's promoters in the dairy industry and bulk
supply arrangement for pasteurized-milk with Mother Diary Fruits
and Vegetables Pvt Ltd.
Outlook: Stable
CRISIL believes that CDPL will continue to benefit from strong
demand for its products and its association with Mother Diary. The
outlook may be revised to 'Positive' if the company scales up
operations substantially while improving its capital structure, or
if it ramps up the proportion of higher-value-added products in
its revenues, thereby improving its margins, and subsequently, its
capital structure. Conversely, the outlook may be revised to
'Negative' if the company's operating profitability deteriorates
significantly or if the company undertakes any additional large,
debt-funded capital expenditure (capex) programme.
About Chandrika Dairy
CDPL was established as a proprietorship firm, Chandrika Dudh
Ghar, in 1962, which was reconstituted as a private limited
company with the present name in 2008. Based in Mehsana (Gujarat),
the company is managed by Mr. Kishanchandra Chandasingha Rao and
his son, Mr. Jayprakash Kishanchandra Rao. CDPL is mainly engaged
in manufacturing pasteurised milk and concentrates on
institutional sales. The company has set up a dairy plant in
village Charadu near Gozariya in Mehsana, which started commercial
production in October 2009. The company also produces curd,
butter, buttermilk, milk based sweets and others, which are
marketed under the Chandrika brand.
However, for the past two years, CDPL has been supplying
pasteurised milk mainly to Mother Dairy, which accounts for about
90% of CDPL's revenues. CDPL is setting up six bulk milk
collection centres in far off areas of Gujarat, of which, three
have been commissioned. Of the total debt-funded capex of INR24.2
million, the promoters have brought in 25% and the balance through
bank funding.
CDPL reported a profit after tax (PAT) of INR0.06 million on net
sales of INR208.87 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.25 million on net
sales of INR7.85 million for 2008-09.
FEDERAL BRANDS: CRISIL Assigns 'BB+' Rating to INR85-Mil. LT Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Federal Brands Ltd.
Facilities Ratings
---------- -------
INR85.7 Million Long-Term Loan BB+/Stable (Assigned)
INR170 Million Cash Credit BB+/Stable (Assigned)
INR7.3 Million Proposed LT Bank BB+/Stable (Assigned)
Loan Facility
INR25 Million Letter of Credit P4+ (Assigned)
INR5 Million Bank Guarantee P4+ (Assigned)
The ratings reflect FBL's average financial risk profile, marked
by large term loan commitments and weak debt protection metrics,
limited pricing power, and susceptibility to intense competition
in the domestic market from Indian and global brands. These rating
weaknesses are partially offset by FBL's established brand
position in the domestic men's apparel segment, and extensive
industry experience of its promoters.
Outlook: Stable
CRISIL believes that FBL will continue to maintain its established
position in the men's apparel segment, over the medium term. The
outlook maybe revised to 'Positive' in case of substantial
improvement in FBL's operating margin and net cash accruals and
decline in overall long-term debt. Conversely, the outlook may be
revised to 'Negative' in case of a further strain on liquidity or
aggressive capital expenditure plans, leading to deterioration in
capital structure or reduced market demand because of substantial
increase in prices.
About Federal Brands
FBL (formerly known as Microtex India Ltd) is in the business of
designing, manufacturing, and branding readymade cotton trousers
and denims under the Live-In brand in the domestic market. It was
incorporated in 1982 as Microtex Elastics Pvt Ltd by the promoters
of Maxwell group, Mr. L Jaipal Reddy and Mr. Jaykumar Pathare, and
was reconstituted as a public limited company in July 1995 under
its present name. In July 2008, the promoters split amicably and
the entire shareholding of the Pathare family in Federal Brands
was acquired by the Reddy family. The overall operations of the
company are now headed by Mr. L Vinaybhushan Reddy, with Mr. L
Jaipal Reddy (father of Mr. Vinaybhushan) providing strategic
advice and direction.
GAJRAJ AUTOMOBILES: CRISIL Rates INR100-Mil. Cash Credit at 'B+'
----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the cash credit
limit facility of Gajraj Automobiles Pvt Ltd.
Facilities Ratings
---------- -------
INR100.0 Million Cash Credit Limit B+/Stable (Assigned)
The rating reflects GAPL's weak financial risk profile marked by a
small net worth and high total outside liabilities to tangible net
worth ratio, revenue concentration, and exposure to intense
competition. These rating weaknesses are partially offset by the
benefits that GAPL derives from its strong relationship with its
principal Tata Motors Ltd (TML, rated 'AA-/Stable/P1+' by CRISIL),
and its promoter's industry experience.
Outlook: Stable
CRISIL believes that GAPL will maintain its stable business risk
profile over the medium term on the back of its strong
relationship with its principal. The outlook may be revised to
'Positive' if GAPL improves its capital structure, and if its
revenues and profitability increase significantly. Conversely, the
outlook may be revised to 'Negative' in case of a slowdown in the
automobile industry, significantly affecting GAPL's revenues and
profitability, or if the company undertakes a large, debt-funded
capital expenditure programme, adversely affecting its financial
risk profile.
About Gajraj Automobiles
GAPL, set up in 2010 by Mr. Bhanu Jalan and his family, is an
authorised dealer of TML's medium and heavy commercial vehicle
(CV) in Odisha. The company is the sole distributor of TML's CVs
in seven districts of Odisha. It has two showrooms in Sambalpur
and Bargarh and two sales outlets in Sambalpur and Bolangir
regions of the state. The company commenced operations in July
2010.
JK SURFACE: CRISIL Rates INR15-Mil. Rupee Term Loan at 'BB'
-----------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank loan
facilities of JK Surface Coatings Pvt. Ltd.
Facilities Ratings
---------- -------
INR15 Million Rupee Term Loan BB/Stable(Assigned)
INR7.5 Million Cash Credit BB/Stable(Assigned)
INR15 Million Proposed Rupee Term Loan BB/Stable(Assigned)
INR25 Million Overdraft Facility BB/Stable(Assigned)
INR5 Million Letter of Credit P4+(Assigned)
INR60 Million Bank Guarantee P4+(Assigned)
The ratings reflect JKSC's large working capital requirements and
limited revenue diversity. These rating weaknesses are partially
offset by the company's strong client base and healthy order book
position, and moderate financial risk profile, marked by modest
gearing and above-average debt protection metrics.
Outlook: Stable
CRISIL believes that JKSC will continue to benefit from its strong
client base and moderate capital structure, supported by modest
cash accruals, over the medium term. The outlook may be revised to
'Positive' if the company's scale of operations increases
materially without weakening its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if the
company undertakes any larger-than-expected debt-funded capital
expenditure programme.
About JK Surface
Incorporated in 1998, JKSC is a service contractor of protective
surface coatings. The company is based in Navi Mumbai
(Maharashtra), and promoted by Mr. Ajay Sagar and Mr. Sanjiv
Thakur. The company undertakes contracts for application of
surface coatings at industrial sites, both on work and labour
contracts.
JKSC reported a profit after tax (PAT) of INR7.5 million on net
sales of INR250.3 million for 2009-10 (refers to financial year,
April 1 to March 31) as against a PAT of INR11.6 million on net
sales of INR334.2 million for 2008-09.
LEGEND ESTATES: CRISIL Rates INR170-Mil. Cash Credit at 'BB+'
-------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to the cash credit
facility of Legend Estates Pvt Ltd.
Facilities Ratings
---------- -------
INR170.00 Million Cash Credit BB+/Stable (Assigned)
The rating reflects LEPL's geographic concentration in its revenue
profile and susceptibility to risks related to project
implementation. These rating weaknesses are partially offset by
LEPL's established track record in Hyderabad's real estate market
and healthy booking rates for its ongoing projects.
Outlook: Stable
CRISIL believes that LEPL will continue to benefit from its
promoters experience in the real estate market and healthy booking
rates for its ongoing projects, over the medium term. The outlook
may be revised to 'Positive' if LEPL generates more-than-expected
cash flows, most likely because of early completion of ongoing
projects, or in case of higher-than-expected sales realizations
from ongoing projects, considerably improving the company's
liquidity. Conversely, the outlook may be revised to 'Negative' if
there are any delays in project completion and customer receipts,
significant fall in realizations, or the company contracts more-
than-expected debt or makes any significant investment in group
entities.
About Legend Estates
Incorporated in 2003, LEPL undertakes residential and commercial
real estate development projects, primarily in Hyderabad,
Secunderabad, and Vishakapatnam (all in Andhra Pradesh). The
company has completed 55 real estate projects thus far, and is
currently implementing 13 projects (11 residential and two
commercial) in Hyderabad.
LEPL's promoters, Mr. Nageshwara Rao and Mr. Rajashekar Reddy,
entered the real estate business in 1998, through group entity
Legend Constructions Pvt Ltd, which completed 14 projects in
Hyderabad, prior to its closure in 2003. Since 2003, the group has
been undertaking real estate projects solely under the aegis of
LEPL. LEPL's management undertakes only small but upscale projects
in Hyderabad's prime locations.
LEPL has a 50% shareholding in a joint venture with RDB Realty and
Infrastructure Ltd, which is part of the RDB group of companies
having business interests in Real estate, Tobacco, auto
dealership, printing and packaging. The joint venture named RDB
Legend Infrastructure Pvt Ltd, is implementing four large
residential real estate projects in Hyderabad.
LEPL is estimated to have generated a profit after tax (PAT) of
INR9.2 million on net sales of INR260 million for 2010-11 (refers
to financial year, April 1 to March 31). LEPL reported a profit
after tax (PAT) of INR7.1 million on net sales of INR246.1 million
for 2009-10, as against a PAT of INR12.0 million on net sales of
INR243.4 million for 2008-09.
LIMTEX TEA: CRISIL Assigns 'D' Rating to INR62.3-Mil. LT Loan
-------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to the bank facilities of
Limtex Tea & Industries Ltd (LTIL, referred to as the Limtex
group). The ratings reflect instances of delay by the company in
servicing its debt; the delays have been caused by the group's
weak liquidity.
Facilities Ratings
---------- -------
INR300 Million Cash Credit D (Assigned)
INR45 Million Standby Line of Credit D (Assigned)
INR62.3 Million Long-Term Loan D (Assigned)
INR3 Million Proposed Long-Term Bank D (Assigned)
Loan Facility
INR65 Million Letter of Credit P5 (Assigned)
INR6 Million Bank Guarantee P5 (Assigned)
The Limtex group also has a weak financial risk profile, marked by
high gearing, weak debt protection metrics, and weak liquidity,
large working requirements, and susceptibility to volatility in
prices of raw material and seasonality in production of tea. These
weaknesses are partially offset by the extensive industry
experience of the group's promoters.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of LTIL, Limtex (India) Ltd, Limtex Agri
Udyog Ltd, Sujali Tea and Industries Ltd, and Satyanarayan Tea
Company Pvt Ltd, collectively referred to as the Limtex group.
This is because all the companies have a common management,
operational linkages, fungible cash flows, are in the same line of
business, and have cross-guaranteed each other's bank loans.
About the Group
LTIL, LIL, LAUL, STIL and STCPL are part of the Kolkata-based
Limtex group of companies with interests in the tea, biscuits, and
information technology industries.
The group is managed by three brothers, Mr. Gopal Poddar, Mr.
Shankar Poddar, and Mr. Subhas Poddar. The second generation of
the promoters is also actively involved in the group's businesses.
The group started with tea trading in 1977. LTIL was set up in
1995 with a tea-processing capacity of 3.5 million kg per annum.
It is backward integrated with a 500-acre tea estate. LIL was
incorporated in 1992 with a tea processing capacity of 1 million
kilograms (kg) per annum. LIL is also involved in blending and
exporting tea. STIL was set up in 2001 with a tea-processing
capacity of 3.5 million kg per annum.
In 2003, the group acquired the Satyanarayan tea estate (under
SCTPL), which has a tea plantation of about 535 acres. The
Satyanarayan tea estate increased its tea-processing capacity in
2011 to 6.3 million kg per annum from 3.5 million kg. LAUL was set
up in 2003, and has a tea-processing capacity of 3.5 million kg
per annum.
The Limtex group reported a profit after tax (PAT) of INR35.5
million on net sales of INR2987.3 million for 2009-10 (refers to
financial year, April 1 to March 31), as against a PAT of INR15.9
million on net sales of INR1518 million for 2008-09.
MEHRAB N IRANI: CRISIL Rates INR60.00-Mil. Cash Credit at 'B'
-------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the cash credit
facility of Mehrab N Irani & Company.
Facilities Ratings
---------- -------
INR60.00 Million Cash Credit B/Stable (Assigned)
The rating reflects MNIC's weak financial risk profile, marked by
a small net worth, a high gearing, and weak debt protection
metrics, large working capital requirements, low financial
flexibility, small scale of operations, and susceptibility to
adverse regulatory changes. These rating weaknesses are partially
offset by MNIC's longstanding presence in the liquor wholesaling
business.
Outlook: Stable
CRISIL believes that MNIC will continue to remain a small player
in the liquor wholesaling business, and its financial risk profile
constrained by its low cash accruals and large working capital
requirements, over the medium term. The outlook may be revised to
'Positive' in case of a sharp and sustained improvement in the
firm's scale of operations, while improving the capital structure.
Conversely, the outlook may be revised to 'Negative' if MNIC's
financial risk profile deteriorates substantially because of
lower-than-expected profitability.
About Mehrab N Irani
MNIC is a proprietorship firm, which was set up by Mr. Mehrab
Irani in 1981 as a wholesaler distributor for Mohan Meakin Ltd
(main brands include Old Monk rum and Golden Eagle beer) in Pune
(Maharashtra). Subsequently, the firm surrendered the licence and
is now the exclusive dealer of Diaggeo India, Carlsberg India, and
Sula Vineyards in Pune. MNIC is also one of the dealers for Allied
Blenders and Distilleries in Pune. MNIC's promoter also trades in
liquor, outside Pune, under KSN Irani and Company, which is
primarily managed by Mr. Mehrab's father and sister.
MNIC reported a profit after tax (PAT) of INR3.6 million on net
sales of INR290 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.1 million on net sales
of INR221.2 million for 2008-09.
ORIENTAL RUBBER: CRISIL Reaffirms 'BB+' Rating on INR142.7MM Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Oriental Rubber
Industries Ltd continue to reflect ORIL's large working capital
requirements, and vulnerability to downturns in the mining and
capital goods industries. The impact of these rating weaknesses is
mitigated by ORIL's established presence in the rubber conveyor
belts industry, healthy revenue growth, and stable margins.
Facilities Ratings
---------- -------
INR142.7 Million Long-Term Loan BB+/Stable (Reaffirmed)
INR250.0 Million Cash Credit BB+/Stable (Reaffirmed)
INR347.3 Million Bill Purchase- P4+ (Reaffirmed)
Discounting Facility
INR320.0 Million Letter of Credit P4+ (Reaffirmed)
INR75.0 Million Bank Guarantee P4+ (Reaffirmed)
Outlook: Stable
CRISIL believes that ORIL will maintain a stable business risk
profile, backed by the extensive experience of its promoters in
the conveyer belts industry and its diversified customer profile.
The outlook may be revised to 'Positive' in case of an improvement
in the company's gearing through efficient working capital
management. Conversely, the outlook may be revised to 'Negative'
if ORIL contracts a large quantum of debt to fund its capital
expenditure or working capital requirements, leading to
deterioration in its financial risk profile
About Oriental Rubber
Incorporated in 1949, ORIL manufactures rubber conveyor belts and
rubber sheets. The company is promoted by the Makar family, and is
currently managed by Mr. Vijeynand Makar and his two sons, Mr.
Vikram Makar and Mr. Vishal Makar. The company has manufacturing
facilities at Koregaon and Karandi near Pune (Maharashtra). ORIL's
wide range of belts caters to requirements of material handling in
the movement of loose bulk material. The belts are used in various
industries such as steel, capital goods, power, and cement. The
company plans to venture into steel cord conveyer belts and 2-
metre wide belts over 2011-12 (refers to financial year, April 1
to March 31) and 2012-13.
For 2010-11, ORIL reported a provisional profit after tax (PAT) of
INR69.76 million on net sales of INR2.03 billion, against a PAT of
INR52.98 million on net sales of INR1.50 billion for 2009-10.
PARTAP FABRICS: CRISIL Assigns 'B+' Rating to INR170MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'B+/Positive/P4' ratings to the bank
facilities of Partap Fabrics Pvt Ltd.
Facilities Ratings
---------- -------
INR30 Million Cash Credit B+/Positive (Assigned)
INR170 Million Rupee Term Loan B+/Positive (Assigned)
INR8 Million Bank Guarantee P4 (Assigned)
The ratings reflect PFPL's small scale of operations in highly
competitive market, and weak financial risk profile, marked by
small net worth and high gearing. These rating weaknesses are
partially offset by the extensive experience of promoters in
textile industry.
Outlook: Positive
CRISIL believes that PFPL's business risk profile will improve
because of the expected increase in its scale once its proposed
capital expenditure (capex) is completed. Its financial risk
profile is, however, expected to remain weak, marked by high
gearing, primarily because of the proposed capex and incremental
working capital requirements. The ratings may be upgraded if the
company's proposed capex stabilizes earlier than expected, leading
to better-than-expected growth in topline and margins, and
improvement in capital structure. The outlook may be revised to
'Stable' if PFPL undertakes a larger-than-expected, debt-funded
capex programme over the medium term, or reports a significant
decline in its margins or increase in its working capital
requirements.
About Partap Fabrics
PFPL was set up in 2010-11 (refers to financial year, April 1 to
March 31), and promoted by Mr. Surender Pal Bansal and others, to
manufacture denim. Earlier, the promoters were in the solvent
extraction plant and oil refinery business. They entered the
textile industry in 2002 under Shivom Cotspin (SC; rated 'BB-
/Stable' by CRISIL), by setting up a ring spinning unit in
Himachal Pradesh. The group's spinning capacities were enhanced in
2005-06, when the promoters set up a ring spinning unit at Maur
Mandi, Bhatinda (Punjab) under Partap Spintex Ltd (PSL; rated 'BB-
/Positive/P4+' by CRISIL). The capacities were further enhanced by
installing knitting machines; in 2009-10, a denim manufacturing
facility was added under PSL.
Under PFPL, the promoters have set up a manufacturing facility at
Ambala (Haryana) to manufacture 10 million metres per annum (mmpa)
of denim cloth. The facility commenced operations in the fourth
quarter of 2010-11. It is in the process of enhancing its
capacities to 20 million metres per annum. PFPL is using its
facility to manufacture black and indigo denim. After the
expansion, the units will produce the colours separately.
SAHASTRA PROPERTIES: CRISIL Reaffirms 'BB+' Rating on INR94MM Loan
------------------------------------------------------------------
CRISIL's rating on the term loan of Sahastra Properties Pvt Ltd
continues to reflect Sahastra's exposure to risks inherent in the
real estate and small scale of operations. These rating weaknesses
are partially offset by the company's steady revenues from the
windmill power generation business, and the group's above-average
financial risk profile marked by a moderate gearing and adequate
debt protection metrics.
Facilities Ratings
---------- -------
INR94.0 Million Term Loan BB+/Stable (Reaffirmed)
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of Enn Enn Corp Ltd (EECL, rated 'BBB-
/Negative' by CRISIL) and Sahastra Properties Pvt Ltd, together
referred to as the Enn Enn group. This is because both the
companies are under the same management and in common businesses
(wind-power generation and real estate), and have fungible cash
flows.
Outlook: Stable
CRISIL believes that Sahastra will continue to benefit over the
medium term from its healthy profitability backed by steady
revenues from its power and real estate businesses, and support
from its promoters. The outlook may be revised to 'Positive' in
case of significant improvement in Sahastra's scale of operations
and capital structure. Conversely, the outlook may be revised to
'Negative' in case an increased exposure to the real estate
business leads to steep deterioration in Sahastra's capital
structure or operating margin, thereby resulting in deterioration
in its financial risk profile.
About the Group
Sahastra commenced operations in 2000. It is mainly into real
estate business and windmill power generation. The company has two
properties, one each in Mumbai and Pune (both in Maharashtra); the
Pune property has been leased to Tech Mahindra Ltd and the Mumbai
property is for sale. There are no new projects expected to be
executed in Sahastra over the medium term. The company has three
wind mills, with 1.25 megawatts (MW) capacity each; two in Sangli
(Maharashtra) and one in Jaisalmer (Rajasthan).
EECL, formerly Abhishek Exports Pvt Ltd, was promoted by Mr.
Naresh Shah and his wife Ms. Meena Shah in Surat (Gujarat). The
company was traditionally into manufacture and sale of knitted
fabrics and garments from its plant in Tirupur (Tamil Nadu), and
trade of diamonds and iron ore. However, over the past few years,
EECL's garments business has reduced and the company has forayed
into three other business segments.
Since 2009, EECL ventured into windmill power generation business
and currently has 13 windmills--six in Maharashtra, four in
Rajasthan, and three in Karnataka--with a total installed capacity
of 18.2 MW. It plans to further increase its capacities by 20 MW
in 2011-12 (refers to financial year, April 1 to March 31) at an
estimated cost of INR1000 million. Moreover, the company also
ventured into the real estate development business with two
projects, Four Seasons and Florence, which are being executed in
Surat. In addition to this, the company set up a diamond cutting
and polishing unit at Surat Special Economic Zone in 2010-11, in
order to leverage its diamond trading experience and increase its
focus on the diamond industry, EECL has recently acquired a
property in Deonar in Mumbai and has leased it to L&T Finance Ltd.
For 2010-11, around 82% of sales are estimated from the diamond
business segment and the rest from the real estate, windmill,
power, and garment business segments at 10%, 5%, and 2%
respectively.
For 2009-10, Sahastra reported a profit after tax (PAT) of INR23.7
million on net revenues of INR84.5 million, against a PAT of
INR11.6 million on net revenues of INR76.0 million for 2008-09.
SAXENA MARINE-TECH: CRISIL Assigns 'BB' Rating on Various Debts
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to Saxena Marine-
Tech Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR50 Million Cash Credit BB/Stable (Assigned)
INR20 Million Rupee Term Loan BB/Stable (Assigned)
INR20 Million Proposed Long-Term BB/Stable (Assigned)
Bank Loan Facility
INR15 Million Bill Purchase-
Discounting Facility P4+ (Assigned)
INR10 Million Letter of Credit P4+ (Assigned)
INR20 Million Bank Guarantee P4+ (Assigned)
The rating reflects SMTPL's moderate financial risk profile,
marked by moderate gearing and debt protection metrics, and small
scale of operations, and exposure to risks related to intense
competition in the pre-engineering building industry. These rating
weaknesses are partially offset by SMTPL's long track record in
the fabrication and engineering industry.
Outlook: Stable
CRISIL believes that SMTPL will continue to benefit from its long
track record and established market position in the fabrication
and engineering industry, over the medium term. However, the
company's financial risk profile will remain moderate by its
moderate gearing and debt protection metrics. The outlook may be
revised to 'Positive' if the company increases its scale of
operations which lead to significant improvement in company's
financial risk profile. Conversely, the outlook may be revised to
'Negative', if the company's order book shrinks, or its financial
risk profile deteriorates because of stretch in working capital
cycle or large, additional, debt-funded capital expenditure.
About Saxena Marine-Tech
SMTPL was set up in 1973 by Mr. M S Saxena and manufactures
engineering products. The company has two divisions: defence
component and pre-engineered building (PEB). The defence component
division manufactures import substitutes which are used in Indian
Army (armanent stores), Indian Navy (naval warship equipment),
vehicle stores and engineering equipment. The company diversified
its activities in PEB systems in 2003 on job-work basis and
commenced manufacturing operations in 2005. The company has two
facilities: the one at Greater Noida (National Capital Region) has
capacity of around 800 tonnes per month for PEB systems and the
one at Ghaziabad (Uttar Pradesh) has capacity of around 200 tonnes
per month for defence products.
SMTPL reported profit after tax (PAT) of INR2.3 million on net
sales of INR217 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR0.7 million on net sales
of INR196.5 million for 2008-09.
SRI KARVEMBU: CRISIL Assigns 'D' Rating to INR75MM Long Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of Sri
Karvembu Textiles Pvt Ltd.
Facilities Ratings
---------- -------
INR75.00 Million Long-Term Loan D (Assigned)
INR35.00 Million Cash Credit D (Assigned)
INR17.60 Million Proposed LT Bank D (Assigned)
Loan Facility
The rating reflects instances of delay by SKTPL in servicing its
debt; the delays have been caused by the company's weak liquidity.
SKTPL has a below-average financial risk profile, marked by a
moderate gearing and weak debt protection metrics, and is
susceptible to volatility in raw material prices and to intense
competition in the textiles industry; it also has a modest scale
of operations. SKTPL, however, benefits from its promoters'
industry experience.
Incorporated in 1994, SKTPL is promoted by Mr. N S Ramalingam,
among others. SKTPL commenced commercial operations in 1996 with
600 rotors; currently, it has 10,800 spindles and 1600 rotors. It
manufactures open-ended and hank yarn in counts of 10s, 12s, 16s,
20s, 30s, 34s, and 40s at its facility in Thottipalayam (Tamil
Nadu). About 90% of its revenues are from cotton mills and traders
in and around Palladam, Tirupur, Tiruchengode, Erode (all in Tamil
Nadu); the rest are from merchant exporters.
SKTPL reported a profit after tax (PAT) of INR1.1 million on net
sales of INR204.6 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR9.7 million on net sales
of INR175.2 million for 2008-09.
STEDMAN PHARMACEUTICALS: CRISIL Reaffirms INR10.2MM Loan at 'BB'
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Stedman Pharmaceuticals
Pvt Ltd continue to reflect product concentration in its revenue
profile and small net worth. These rating weaknesses are partially
offset by the experience of Stedman's promoters in the
pharmaceutical industry, and the company's established brands in
acute therapeutic segment.
Facilities Ratings
---------- -------
INR36 Million Cash Credit BB/Stable (Reaffirmed)
INR10.2 Million Long-Term Loan BB/Stable (Reaffirmed)
INR9.9 Million Proposed Long-Term BB/Stable (Reaffirmed)
Bank Loan Facility
INR2.5 Million Working Capital Loan BB/Stable (Reaffirmed)
INR1.5 Million Letter of Credit P4+ (Reaffirmed)
INR0.5 Million Bank Guarantee P4+ (Reaffirmed)
Outlook: Stable
CRISIL believes that Stedman will maintain its financial risk
profile over the medium term on the back of steady internal
accruals from established brands. The outlook may be revised to
'Positive' if Stedman improves its business risk profile through
significant improvement in its turnover, product diversification
and strengthening of its capital base. Conversely, the outlook may
be revised to 'Negative' if the company undertakes a large, debt-
funded capital expenditure programme, or if there is a decline in
its accruals.
About Stedman Pharmaceuticals
Incorporated by Mr. R Rajagopal in 1985, Stedman commenced
commercial production in 1991. The company manufactures and
markets formulations in the antibiotic, antimicrobial, analgesic,
antipyretic, antihistamine, multivitamin, and haematinic
preparation segments. Stedman has a manufacturing facility located
in the Small Industries Development Corporation Pharmaceutical
Estate near Chennai (Tamil Nadu). Stedman's major brands are Drez
ointment and powder, Contus paediatric syrup, Aminorich capsules,
Serronak tablets, and Trozan-Od tablets. In January 2006, Stedman
entered into an equal joint venture (JV) with Anabond Ltd to form
Anabond Stedman Pharma Research Pvt Ltd. This JV specialises in
research and development of polymers and sealants for
manufacturing of dental products, including dental composites and
bonding agents.
SUPER STAR: CRISIL Assigns 'BB-' Rating to INR24MM Rupee Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Super Star Ceramic.
Facilities Ratings
---------- -------
INR25 Million Cash Credit BB-/Stable (Assigned)
INR24 Million Rupee Term Loan BB-/Stable (Assigned)
INR5 Million Bank Guarantee P4+ (Assigned)
The rating reflects SSC's expected below-average financial risk
profile, marked by small net worth and high gearing. These rating
weaknesses are partially offset by the benefits accrued from the
advantageous location of SSC's unit marked by easy access to raw
material and skilled labor and its tie-up with H & R Johnson,
which provides revenue visibility.
Outlook: Stable
CRISIL believes that SSC will continue to benefit from its offtake
tie-up with H & R Johnson and the advantageous location of its
facility, in Morbi (Gujarat). The outlook may be revised to
'Positive' if SSC's operations stabilize and it reports better-
than-expected revenue growth and profitability. Conversely, the
outlook may be revised to 'Negative' if SSC undertakes a larger-
than-expected debt-funded capital expenditure programme or its
revenues and profitability decline significantly.
About Super Star
Incorporated in 2004, SSC manufactures 12x12-inch non-vitrified
ceramic floor tiles. Based in Morbi, SSC has an installed capacity
of 25,200 tonnes per annum. SSC was not operational from 2008 to
2010. Original promoters sold the company to the present promoters
in 2010. Present promoters restarted the operations in March 2011
after purchasing new machines and making necessary
changes/renovation in the manufacturing facility. The total cost
of the project was around INR40.7 million which has been funded by
term loan of INR24 million, unsecured loans from promoters of
INR2.75 million and equity infusion of INR14 million.
SUPERTECH LIMITED: CRISIL Reaffirms 'B' Rating on INR1.68BB Loan
----------------------------------------------------------------
CRISIL's rating on the bank facilities of Supertech Ltd, which is
part of the Supertech group, continues to reflect the Supertech
group's aggressive growth plans that increase the group's exposure
to risks related to downturns in the real estate sector; the plans
are also likely to constrain the financial flexibility of the
group.
Facilities Ratings
---------- -------
INR1686.9 Million Term Loan B/Stable (Reaffirmed)
The rating also reflects the concentration of the Supertech
group's ongoing/new projects in Uttar Pradesh and the start-up
nature of the group's subsidiary, Supertech Infrastructure P Ltd
(SIPL). These rating weaknesses are partially offset by the
group's improved business performance in 2010-11 (refers to
financial year, April 1 to March 31) because of the healthy
response to newly launched projects and the established track
record of the group's promoters.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Supertech Ltd with those of its
subsidiary companies, SIPL, Surprise Suppliers P Ltd, Supertech
Realty P Ltd, Supertech Builders P Ltd, Supertech Hotels P Ltd,
Dazzle IT Solutions P Ltd, and Ramsang Consultancy P Ltd (referred
to as Supertech group hereafter). This is mainly because the land
bank with the subsidiary companies is likely to be utilized for
real estate development by Supertech Ltd. The management, which is
common for all the companies, has clearly indicated that Supertech
will support the projects undertaken in subsidiaries, if required.
Also, Supertech Ltd will continue to be the flagship company, with
more than 90% projects being executed in Supertech Ltd. The
subsidiaries will continue to be land banks.
Outlook: Stable
CRISIL believes that the Supertech group's operating income will
grow over the medium term because of the expected completion of
the projects currently being implemented. The outlook may be
revised to 'Positive', if the company consolidates its market
position through timely completion of projects or reports
substantial growth in its scale of operations and profitability
leading to higher-than-expected cash accruals. Conversely, the
outlook may be revised to 'Negative' in case of a slowdown in
receipt of advances or delays in sanctioning of term loans leading
to delay of some large-sized projects launched by the Supertech
group in 2010-11. The outlook may be revised to 'Negative' also if
the financial risk profile of the group deteriorates because of
larger-than-expected, debt-funded expansion plans or significant
pressure on revenues and profitability leading to deterioration in
the group's business risk profile.
About the Group
Supertech, incorporated in 1995 by Mr. R K Arora, is engaged in
construction business; it undertakes various projects such as
residential and commercial townships, shopping malls, hotels, and
information technology parks. The name was changed to Supertech
Ltd in 2005-06. The company developed Supertech Estate in Vaishali
in 2000, and Supertech Residency in Kaushambi in 2003. The company
has also developed three shopping malls, named Shopprix Mall, in
Noida, Kaushambi, and Ghaziabad in 2004. About 20% of the space in
the malls is sold, while the rest has been leased out.
Supertech Ltd has launched various projects in 2009-10 and 2011-
12. Some of these projects include Eco village 1, Eco village 2,
Cape town, Upcountry, Eco citi etc. The company has completed
projects such as Emerald court, Palm Green Moradabad, and Palm
Green Meerut in 2009-10. Supertech holds 88.86% equity stake in
SIPL while about 11% is held by Assotech Contracts (India) Ltd.
SIPL has set up Pentagon Mall in Haridwar (Uttaranchal) that
includes a shopping mall, multiplex, and a five-star hotel. SIPL
has entered into agreement with Radisson Hotel and Resorts for
managing the operations of the hotel.
The Supertech group reported a profit after tax (PAT) of INR378.0
million on net sales of INR3.42 billion for 2009-10, against a PAT
of INR270.9 million on net sales of INR2.15 billion for 2008-09.
ULTRACAB (INDIA): CRISIL Assigns 'C' Rating to INR20MM LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'C' rating to the bank facilities of
Ultracab (India) Pvt Ltd. The ratings reflect instances of delays
in servicing debt obligations in respect of unrated facilities of
UIPL; the delays have been caused by the company's weak liquidity.
Facilities Ratings
---------- -------
INR20 Million Long-Term Loan C (Assigned)
INR100 Million Cash Credit C (Assigned)
UIPL also has large working capital requirements. However, it
partially benefits from the extensive experience of its promoter,
characterised by the ability to scale up business over a short
period.
UPIL incorporated in the year 2008 by Mr. Nitesh Vaghasiya from
Rajkot (Gujarat). The company manufactures polyvinyl chloride
cables, cross linked polyethylene cables, zero halogen free flame
retardant cables, aerial bunch cables, and heavy cables used in
transmission and distribution of power. The application of wires
and cables ranges from household wires, panel boards in industrial
machines, heavy cables in industries, and flat cables for
industrial pumps. UPIL also undertakes jobwork for government
tenders.
UIPL reported a profit after tax (PAT) of INR 2 million on net
sales of INR 106 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a net loss of Rs 1 million on net
sales of INR10 million for 2008-09.
ULTRA DIMENSIONS: CRISIL Cuts Rating on INR100MM Credit to 'BB'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Ultra
Dimensions (UD, part of the Ultra group) to 'BB/Negative/P4+' from
'BBB-/Stable/P3'.
Facilities Ratings
---------- -------
INR100 Million Cash Credit BB/Negative (Downgraded from
'BBB-/Stable')
INR30 Million Bank Guarantee P4+ (Downgraded from 'P3')
The downgrade is driven by the transfer of funds from the Ultra
group to other group entities and delays in receipt of payments
from government entities, resulting in high utilization of bank
limits and consequently, weak liquidity. The group's weak
liquidity has also led to delays in repayment of term loans by
Ultra Dimensions Pvt Ltd, a group company. Since UDPL has been
sanctioned fresh working capital facilities, UD is required to
repay its working facilities in a phased manner by June 2011,
further constraining the Ultra group's financial risk profile.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of UD and UDPL. This is because both the
entities, collectively referred to as the Ultra group, have common
directors, are in the same line of business, and have operational
synergies.
Outlook: Negative
CRISIL believes that the Ultra group's financial risk profile will
remain under pressure over the medium term because of repayment
and closure of UD's working capital facilities by June 2011 and
closure of UD's business on completion of its projects. The rating
may be downgraded if the Ultra group is unable to repay UD's
working capital facilities on time. Conversely, the outlook may be
revised to 'Stable' if the group reports better-than-expected
revenues and maintains its profitability.
About the Group
Set up as a proprietorship firm in 1993 and later reconstituted as
a partnership firm, UD undertakes fabrication and installation of
pipes used in ship repairs by the Indian Navy. The firm also
undertakes turnkey projects in civil and mechanical engineering
for the Indian Navy. UD also trades pumps and motors, and offers
annual maintenance services to its customers.
UD's promoters set up UDPL in August 2008 to conduct the same
business as UD. As UD is registered with defence institutions,
including the Indian Navy, work orders are obtained by UD, some of
which are shared with UDPL. Eventually UD will cease to exist and
UDPL will carry forward the business.
The Ultra group reported a profit after tax (PAT) of INR35 million
on net sales of INR453 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR36 million on net
sales of INR423 million for 2008-09.
=================
I N D O N E S I A
=================
CHANDRA ASRI: Moody's Sees No Rating Impact From Covenant Changes
-----------------------------------------------------------------
Moody's Investors Service sees no impact on the B2 corporate
family rating on PT Chandra Asri Petrochemical Tbk and the B2
rating on its guaranteed senior secured US$ bonds due 2015
following its announcement of proposed amendments to certain
covenants for its US$ bonds.
The proposed amendments are 1) changing an amortizing repayment
structure commencing Aug 2013 to bullet repayments at maturity, 2)
relaxing the debt to capitalization ratio to 40% under its debt
incurrence test for full term as opposed to a stepped-up
requirement; 3) permitting debt incurrence and on-lending of debt
proceeds by more entities within the group.
Such amendments would provide more latitude for CAP to accommodate
its bigger planned capex, and are not too dissimilar in nature
from other Asian single-B rated issuers' high-yield debt
covenants.
At the same time, Moody's notes that the latest consent
solicitation is the second such request within the last 12 months,
which highlights the evolving nature of CAP's growth strategies.
The last rating action on CAP was on June 1, 2011 when the outlook
on its ratings was changed to stable from positive.
The principal methodology used in rating PT Chandra Asri
Petrochemical Tbk was the Global Chemical Industry Methodology,
published December 2009.
CAP is the largest petrochemical producer in Indonesia. It was
established in January 2011 through the merger between its
predecessor PT Chandra Asri and PT Tri Polyta Tbk with Barito
Pacific owning about 72% stake. Temasek owns a 23% stake. CAP is
listed on the Jakarta Stock Exchange.
=========
J A P A N
=========
TOKYO ELECTRIC: Expects to Post JPY570 Billion Loss in 2012
-----------------------------------------------------------
Kyodo News reports that Tokyo Electric Power Co is expected to
post a parent-only net loss of JPY570 billion for the business
year to March 2012, excluding compensation to those affected by
the ongoing crisis at its crippled Fukushima Daiichi nuclear power
plant, according to an internal document.
TEPCO anticipates the huge loss as fuel costs are expected to
expand by JPY830 billion due to the suspension of operations at
the Fukushima Daiichi nuclear plant and shifts to thermal power
generation, according to the document about estimates of
unconsolidated earnings for the current business year obtained by
Kyodo.
The expected net loss, according to Kyodo News, does not cover
compensation over the nuclear crisis as it is difficult for the
company to calculate it at this time.
Kyodo discloses that the amount of cash and deposits held by TEPCO
is expected to fall below JPY100 billion at the end of March 2012
from about JPY2.1 trillion at the end of March 2011.
According to Kyodo, banks provided JPY2 trillion in emergency
loans to TEPCO by April but the amount of cash and deposits is
expected to fall to JPY1.6 trillion at the end of June; JPY520
billion at the end of December; and JPY95 billion at the end of
next March due to an increase in fuel costs and the redemption of
corporate bonds.
Bloomberg News said the utility 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 (US$135 billion).
The Troubled Company Reporter-Asia Pacific, citing Dow Jones
Newswires, reported on May 17, 2011, that Japan's government
unveiled a comprehensive plan to protect TEPCO from bankruptcy and
fund compensation claims stemming from the country's worst-ever
nuclear energy disaster.
Dow Jones said the rollout of the plan, along with comments from
government officials, raised fresh concerns, however, about
TEPCO's future and whether shareholders and bondholders will be
expected to share in the pain.
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.
As reported in the Troubled Company Reporter-Asia Pacific on
June 3, 2011, Standard & Poor's Ratings Services lowered Tokyo
Electric Power Co. Inc.'s (TEPCO) long-term corporate credit
rating to 'B+' from 'BBB' and its short-term corporate credit
rating to 'B' from 'A- 2'. At the same time, the long-term debt
rating on TEPCO was lowered to 'BB+' from 'BBB'. All ratings
remain on CreditWatch with developing implications. "At the same
time, we lowered TEPCO's stand-alone credit profile (SACP) to
'ccc+' from 'bb-', and we lowered the likelihood that it will
receive extraordinary support from the government of Japan (AA-
/Negative/A-1+) to 'high' from 'very high'," S&P said.
"The rating downgrades reflect Standard & Poor's opinion that
uncertainty over the timeliness of any extraordinary government
support for TEPCO under the current political climate has further
exacerbated TEPCO's deteriorating SACP and TEPCO's worsening
financial position increases the likelihood, in our view, that its
lender banks could restructure its borrowings. Under Standard &
Poor's ratings criteria, any waiver of loans or distressed
restructuring, such as a lowering of interest rates on existing
loans, constitutes a form of default and would trigger a lowering
of the corporate credit ratings on TEPCO to 'SD'--Selective
Default," S&P explained.
TOKYO ELECTRIC: TSE Head Recommends Court-Led Restructuring
-----------------------------------------------------------
Reuters reports that Tokyo Electric Power Co should go through a
court-led rehabilitation similar to Japan Airlines, according to
Atsushi Saito, head of the Tokyo Stock Exchange.
Reuters relates that Japanese authorities have consistently said
that TEPCO, the operator of the quake-hit Fukushima Daiichi
nuclear plant, should remain both solvent and listed, and have
proposed a fund be set up with taxpayer money to compensate
victims of the nuclear crisis.
However, Mr. Saito, who used to head a state-backed turnaround
body, said temporary nationalization for the troubled utility
should be considered and that creditors would likely have to
forgive loans, Reuters reports.
"It would be good if [TEPCO] could be handled in the same way as
JAL," Mr. Saito was quoted as saying in an interview with Asahi
Judiciary, an online magazine owned by the Asahi newspaper,
according to Reuters.
Bloomberg News said the utility 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 (US$135 billion).
The Troubled Company Reporter-Asia Pacific, citing Dow Jones
Newswires, reported on May 17, 2011, that Japan's government
unveiled a comprehensive plan to protect TEPCO from bankruptcy and
fund compensation claims stemming from the country's worst-ever
nuclear energy disaster.
Dow Jones said the rollout of the plan, along with comments from
government officials, raised fresh concerns, however, about
TEPCO's future and whether shareholders and bondholders will be
expected to share in the pain.
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.
As reported in the Troubled Company Reporter-Asia Pacific on
June 3, 2011, Standard & Poor's Ratings Services lowered Tokyo
Electric Power Co. Inc.'s (TEPCO) long-term corporate credit
rating to 'B+' from 'BBB' and its short-term corporate credit
rating to 'B' from 'A- 2'. At the same time, the long-term debt
rating on TEPCO was lowered to 'BB+' from 'BBB'. All ratings
remain on CreditWatch with developing implications. "At the same
time, we lowered TEPCO's stand-alone credit profile (SACP) to
'ccc+' from 'bb-', and we lowered the likelihood that it will
receive extraordinary support from the government of Japan (AA-
/Negative/A-1+) to 'high' from 'very high'," S&P said.
"The rating downgrades reflect Standard & Poor's opinion that
uncertainty over the timeliness of any extraordinary government
support for TEPCO under the current political climate has further
exacerbated TEPCO's deteriorating SACP and TEPCO's worsening
financial position increases the likelihood, in our view, that its
lender banks could restructure its borrowings. Under Standard &
Poor's ratings criteria, any waiver of loans or distressed
restructuring, such as a lowering of interest rates on existing
loans, constitutes a form of default and would trigger a lowering
of the corporate credit ratings on TEPCO to 'SD'--Selective
Default," S&P explained.
* JAPAN: March 11 Quake Causes 145 Firms to Collapse
----------------------------------------------------
Kyodo News reports that the March 11 earthquake and tsunami
disaster in Japan has forced 145 Japanese companies to either go
bankrupt or effectively fail, already topping the number of
business failures in the year after the Great Hanshin Earthquake
of 1995, according to Tokyo Shoko Research.
The total consists of 96 bankruptcies, such as companies subject
to legal liquidation and suspension of transactions with banks,
and 49 effective failures like firms under bankruptcy proceedings,
Kyodo relates.
According to Kyodo, the agency said a large number of the 145
companies went down due to indirect effects of the disaster,
including sales falls as a result of business partners being
damaged by the catastrophe as well as misinformation about
radiation contamination of their products amid the nuclear crisis
and self-imposed restraints on spending among consumers.
By prefecture, Kyodo notes, Tokyo has so far had the largest
number of failures with 20 companies collapsing, followed by 11 in
Fukushima, and eight each in Miyagi, Gunma and Hokkaido.
=========
K O R E A
=========
KUMHO ASIANA: Petrochem Unit Chief Summoned Over Slush Fund
-----------------------------------------------------------
The Korea Herald reports that Kumho Petrochemical Chairman Park
Chan-koo was on Friday summoned by prosecutors over allegations
that he created slush funds and gained illegal profit on the back
of exclusive, internal information.
The prosecution believes the slush funds may amount to up to
KRW30 billion, the Korea Herald says.
The Korea Herald relates that Mr. Park denied any wrongdoing,
saying he would "clear everything" during the questioning session.
Mr. Park also said his estranged elder brother Park Sam-koo was
"involved," implicating that the authorities were after the wrong
man, the report says.
Early on in the investigation, The Korea Herald says, there had
been rumors that the elder Park -- chairman of Kumho Asiana
Group -- enlisted the support of his confidantes to get the
prosecution on Kumho Petrochemical's case.
According to the Korea Herald, industry watchers said the fact
that the allegedly illegal funds were found in accounts belonging
to Park Sam-koo is adding credibility to the younger Park's
claims.
Kumho Petrochemical on Friday said in a statement that the
chairman had not used internal information in any way when he
disposed of his Kumho Industrial shares and purchased Kumho
Petrochemical stocks, The Korea Herald reports.
"The sole objective of the transaction was to achieve independent
management rights," the company said.
The Korea Herald recounts that the two Kumho brothers have more or
less severed ties after a family feud in 2009, after which they
both stepped down from office. But Park Chan-koo returned to his
post in March last year, while his brother Sam-koo returned later
on in November as chairman of Kumho Asiana Group.
The separation proved to be a good one for Kumho Petrochemical,
which posted its highest-ever operating profit of KRW363.5 billion
last year, the report notes.
Kumho Asiana Group, according to the report, was not so fortunate
and is still under a debt workout program.
For this reason, the Korea Herald says, the younger Park has been
trying to legally separate Kumho Petrochemical from the ailing
Kumho Asiana Group.
As reported in the Troubled Company Reporter-Asia Pacific on
August 6, 2009, The Korea Herald said Kumho Asiana Group has been
suffering from a liquidity crisis, which observers describe as a
typical case of acquisition indigestion. In a bid to ease a cash
shortage, the conglomerate in July 2009 decided to re-sell the
controlling stakes and management rights of Daewoo Engineering,
after acquiring it in 2006 for KRW6.4 trillion. The creditors
decided on December 30, 2009, to put two other ailing units
-- Kumho Industrial Co. and Kumho Tire Co. -- under a debt
rescheduling program. Meanwhile, the group's other two units --
Korea Kumho Petrochemical Co. and Asiana Airlines Inc. -- will
have to improve their financial health through rigorous self-
restructuring efforts as earlier agreed with creditors.
Kumho Asiana unveiled a restructuring plan on January 5 that
involves raising KRW1.3 trillion (US$1.1 billion) by selling off
assets, while cutting costs via a 20% reduction in executive
positions and wages, Yonhap News Agency reported.
About Kumho Asiana
Established in 1946, Kumho Asiana Group is a large South Korean
conglomerate, with subsidiaries in the automotive, industry,
leisure, logistic, chemical and airline fields. The group is
headquartered at the Kumho Asiana Main Tower in Sinmunno 1-ga,
Jongno-gu, Seoul, South Korea.
====================
N E W Z E A L A N D
====================
NEW ZEALAND GLOBAL: In Liquidation; Buyers Line Up
--------------------------------------------------
Sunday Star Times reports that overseas buyers are lining up to
take control of New Zealand Global Ltd after the company was
tipped into liquidation.
According to the report, New Zealand Global Ltd, which sells a
wide range of locally made products to consumers around the world
via its shopnewzealand.co.nz Web site, has been put on the market
by liquidator Gareth Hoole of Staples Rodway, who said he hoped to
have a sale finalized as early as this week.
Sunday Star Times relates that Mr. Hoole said a number of
potential buyers had shown interest in the business and most were
based in China or Malaysia.
The company, says Sunday Star Times, has had a rocky trading
history over the past 12 months. It has been in and out of
voluntary administration and receivership in controversial
circumstances, as minority shareholders battled the company's
former majority shareholder and managing director Chris Berryman
for control of the business, the report says.
The report notes that NZ Global was subsequently placed into
voluntary administration in October last year, and into
receivership a few days later. But that arrangement was also
short-lived and the company came out of receivership and back into
voluntary administration in November.
According to the report, Mr. Hoole, who acted as the administrator
and has continued as liquidator, said the company had traded
satisfactorily until Christmas but was badly affected by the
recent earthquakes in Christchurch and Japan.
New Zealand Global Ltd is one of the largest online exporters of
New Zealand-made consumer goods.
=================
S I N G A P O R E
=================
ALLIED CONTAINER: Court to Hear Wind-Up Petition June 15
--------------------------------------------------------
A petition to wind up the operations of Allied Container
(Engineers & Manufacturers) Pte Ltd will be heard before the
High Court of Singapore on June 15, 2011, at 10:00 a.m.
Sintech Mechanical & Electrical Services Pte Ltd filed the
petition against the company on December 3, 2011.
The Petitioner's solicitors are:
Hin Tat Augustine & Partners
20 Upper Circular Road
#02-10/12 The Riverwalk
Singapore 058416
CHUAN SOON: Creditors' Proofs of Debt Due June 17
-------------------------------------------------
Creditors of Chuan Soon Huat Investments Pte Ltd, which is in
liquidation, are required to file their proofs of debt by June 17,
2011, to be included in the company's dividend distribution.
The company's liquidators are:
Chay Fook Yuen
Bob Yap Cheng Ghee
Tay Puay Cheng
c/o KPMG Services Pte. Ltd.
16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
ENGAGE ELECTRONICS: Creditors Get 100% Recovery on Claims
---------------------------------------------------------
Engage Electronics (S) Pte Ltd declared the first and final
dividend to preferential creditors on May 31, 2011.
The company paid 100% to the received claims.
The company's liquidator is:
Goh Ngiap Suan
336 Smith Street
#06-308 New Bridge Centre
Singapore 050336
GIBBOUS HOLDINGS: Court to Hear Wind-Up Petition June 15
--------------------------------------------------------
A petition to wind up the operations of Gibbous Holdings Pte Ltd
will be heard before the High Court of Singapore on June 15, 2011,
at 10:00 a.m.
Challenger World Limited filed the petition against the company on
May 19, 2011.
The Petitioner's solicitors are:
CitiLegal LLC
150 Cecil Street
#15-00, Singapore 069543
GREENLIFE HERBAL: Creditors Get 0.11718% Recovery on Claims
------------------------------------------------------------
Greenlife Herbal & Seafood Restaurant Pte Ltd declared the first
and final dividend to creditors on May 18, 2011.
The company paid 0.11718% to the received claims.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
45 Maxwell Road #06-11
The URA Centre (East Wing)
Singapore 069118
INQVESTMENTS PTE: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on May 27, 2011, to
wind up the operations of Inqvestments Pte Ltd.
Chee Heng Suan Elaine filed the petition against the company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
45 Maxwell Road #06-11
The URA Centre (East Wing)
Singapore 069118
===============
X X X X X X X X
===============
* BOND PRICING: For the Week May 30 to June 3, 2011
---------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
AINSWORTH GAME 8.00 12/31/2011 AUD 1.30
AMITY OIL LTD 10.00 10/31/2013 AUD 2.03
AUSTRALIA COMM 3.00 07/29/2049 GBP 5.00
BECTON PROP GR 9.50 06/30/2010 AUD 0.25
EXPORT FIN & INS 0.50 12/16/2019 NZD 64.71
EXPORT FIN & INS 0.50 06/15/2020 AUD 62.39
EXPORT FIN & INS 0.50 06/15/2020 NZD 61.70
FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.60
NEW S WALES TREA 1.00 09/02/2019 AUD 67.82
NEW S WALES TREA 0.50 09/14/2022 AUD 55.65
NEW S WALES TREA 0.50 10/07/2022 AUD 55.18
NEW S WALES TREA 0.50 10/28/2022 AUD 54.80
NEW S WALES TREA 0.50 11/18/2022 AUD 54.82
NEW S WALES TREA 0.50 12/16/2022 AUD 54.27
NEW S WALES TREA 0.50 02/02/2023 AUD 54.39
NEW S WALES TREA 0.50 03/30/2023 AUD 53.93
NEXUS AUSTRALIA 3.60 08/31/2019 AUD 69.91
RESOLUTE MINING 12.00 12/31/2012 AUD 1.13
SUN RESOURCES NL 12.00 06/30/2011 AUD 0.45
TREAS CORP VICT 0.50 08/25/2022 AUD 56.13
TREAS CORP VICT 0.50 11/12/2030 AUD 54.35
TREAS CORP VICT 0.50 11/12/2030 AUD 38.00
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 62.21
CHINA RAIL GRP 4.48 01/27/2015 CNY 54.35
HONG KONG
---------
RESPARCS FUNDING 8.00 12/29/2049 USD 57.52
INDIA
-----
NABARD 9.50 03/07/2014 INR 9.72
PUNJAB INFRA DB 0.40 10/15/2024 INR 25.30
PUNJAB INFRA DB 0.40 10/15/2025 INR 22.92
PUNJAB INFRA DB 0.40 10/15/2026 INR 20.81
PUNJAB INFRA DB 0.40 10/15/2027 INR 18.97
PUNJAB INFRA DB 0.40 10/15/2028 INR 17.33
PUNJAB INFRA DB 0.40 10/15/2029 INR 15.86
PUNJAB INFRA DB 0.40 10/15/2030 INR 14.54
PUNJAB INFRA DB 0.40 10/15/2031 INR 13.36
PUNJAB INFRA DB 0.40 10/15/2032 INR 12.31
PUNJAB INFRA DB 0.40 10/15/2033 INR 11.37
INDONESIA
---------
ARPENI PRATAMA 12.00 03/18/2013 IDR 57.33
JAPAN
-----
AIFUL CORP 1.63 11/22/2012 JPY 50.09
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 67.65
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 59.74
JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 59.20
TAKEFUJI CORP 9.20 04/15/2011 USD 7.00
TOKYO ELECTRIC POWER 2.12 03/24/2017 JPY 73.24
TOKYO ELECTRIC POWER 2.34 09/29/2028 JPY 73.26
TOKYO ELECTRIC POWER 2.40 11/28/2028 JPY 71.64
TOKYO ELECTRIC POWER 2.20 02/27/2029 JPY 71.46
TOKYO ELECTRIC POWER 2.11 12/10/2029 JPY 71.54
TOKYO ELECTRIC POWER 1.95 07/29/2030 JPY 71.93
TOKYO ELECTRIC POWER 2.36 05/28/2040 JPY 71.14
MALAYSIA
--------
ADVANCED SYNERY 2.00 01/26/2018 MYR 0.11
ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.41
CRESENDO CORP B 3.75 01/11/2016 MYR 1.51
DUTALAND BHD 6.00 04/11/2013 MYR 0.65
DUTALAND BHD 6.00 04/11/2013 MYR 0.39
EASTERN & ORIENT 8.00 07/25/2011 MYR 1.47
EASTERN & ORIENT 8.00 11/16/2019 MYR 1.49
ENCORP BHD 6.00 02/17/2016 MYR 0.92
IJM CORP BERHAD 3.98 05/24/2013 MYR 23.40
KUMPULAN JETSON 5.00 11/27/2012 MYR 1.05
LION DIVERSIFIED 4.00 12/17/2013 MYR 0.60
MITHRIL BHD 3.00 04/05/2012 MYR 0.51
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.30
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.24
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.43
PANTECH GROUP 7.00 12/21/2017 MYR 0.11
PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.52
REDTONE INTL 2.75 03/04/2020 MYR 0.07
RUBBEREX CORP 4.00 08/14/2012 MYR 0.75
SCOMI ENGINEERING 4.00 03/19/2013 MYR 0.78
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 1.95
WAH SEONG CORP 3.00 05/21/2012 MYR 3.31
WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.25
YTL CEMENT BHD 5.00 11/10/2015 MYR 2.74
NEW ZEALAND
-----------
ALLIED FARMERS 9.60 11/15/2011 NZD 16.79
DORCHESTER PACIF 5.00 06/30/2013 NZD 69.16
GENESIS PACIFC 8.50 07/15/2041 NZD 8.32
INFRATIL LTD 8.50 09/15/2013 NZD 7.90
INFRATIL LTD 8.50 11/15/2015 NZD 8.30
INFRATIL LTD 4.97 12/29/2049 NZD 61.70
KIWI INCOME PROP 8.95 12/20/2014 NZD 1.27
NZF GROUP 6.00 03/15/2016 NZD 5.62
SKY NETWORK TV 4.01 10/16/2016 NZD 6.50
TOWER CAPITAL 8.50 04/15/2014 NZD 1.02
TRUSTPOWER LTD 8.50 09/15/2012 NZD 6.50
TRUSTPOWER LTD 8.50 03/15/2014 NZD 6.90
UNI OF CANTERBUR 7.25 12/15/2019 NZD 1.01
VECTOR LTD 8.00 06/15/2012 NZD 6.20
SINGAPORE
---------
BLUE OCEAN 11.00 06/28/2012 USD 43.00
CAPITAMALLS ASIA 1.00 01/21/2012 SGD 0.98
CAPITAMALLS ASIA 2.15 01/21/2014 SGD 0.99
F&N TREASURY PTE 2.48 03/28/2016 SGD 0.96
F&N TREASURY PTE 3.15 03/28/2018 SGD 0.99
SENGKANG MALL 8.00 11/20/2012 SGD 0.48
SENGKANG MALL 4.88 11/20/2012 SGD 0.04
UNITED ENG LTD 1.00 03/03/2014 SGD 1.64
WBL CORPORATION 2.50 06/10/2014 SGD 1.58
SOUTH KOREA
-----------
BUSAN SOLOMON 8.50 10/29/2014 KRW 10.14
EPIVALLEY CO LTD 3.00 01/14/2011 KRW 71.14
GREAT KO 1ST ABS 15.00 08/19/2014 KRW 30.04
GYEONGGI MUTUAL 8.50 12/11/2014 KRW 60.28
GYEONGGI MUTUAL 8.00 01/22/2016 KRW 60.18
HOPE KOD 1ST ABS 8.02 06/30/2012 KRW 23.02
HOPE KOD 2ND ABS 15.00 08/21/2012 KRW 36.41
HOPE KOD 3RD ABS 15.00 09/30/2012 KRW 30.39
HOPE KOD 4TH ABS 15.00 12/29/2012 KRW 25.02
HOPE KOD 6TH ABS 15.00 03/10/2013 KRW 33.87
HYUNDAI SWISS BK 8.20 10/26/2012 KRW 70.62
HYUNDAI SWISS II 7.90 07/23/2015 KRW 60.15
IBK 17TH ABS 25.00 12/29/2012 KRW 61.74
JEIL MUTUAL BK 8.50 01/22/2015 KRW 65.25
KB 13TH ABS 25.00 07/02/2012 KRW 63.93
KB 14TH ABS 23.00 01/04/2013 KRW 61.13
KDB 6TH ABS 20.00 12/02/2019 KRW 54.60
KEB 17TH ABS 20.00 12/28/2011 KRW 61.00
KOREA MUTUAL SAV 8.00 01/23/2013 KRW 70.63
KOREA MUTUAL SAV 8.00 12/17/2015 KRW 65.14
NACF 17TH ABS 25.00 07/03/2011 KRW 20.02
NACF 18TH ABS 25.00 08/20/2011 KRW 30.00
ONE KDB 1ST ABS 7.60 06/13/2011 KRW 25.02
OSAN MYT 1ST ABS 5.64 04/16/2012 KRW 63.63
OSAN MYT 1ST ABS 5.64 04/16/2012 KRW 63.40
SAM BU CONSTRUCT 7.70 03/11/2012 KRW 50.63
SEGYE TOUR CO 4.00 11/06/2012 KRW 67.32
SEOUL MUTUAL SAV 8.00 04/27/2016 KRW 70.20
SINBO 1ST ABS 15.00 07/22/2013 KRW 30.51
SINBO 2ND ABS 15.00 08/26/2013 KRW 33.53
SINBO 3RD ABS 15.00 09/30/2013 KRW 33.51
SINBO 4TH ABS 15.00 12/16/2013 KRW 31.29
SINBO 5TH ABS 15.00 02/23/2014 KRW 30.55
SINBO CO 1ST ABS 15.00 03/15/2014 KRW 30.20
SINBO CO 1ST ABS 10.00 06/30/2014 KRW 30.07
SINGOK NS ABS 7.50 06/27/2011 KRW 53.02
SOLOMON MUTUAL B 8.50 12/09/2013 KRW 60.24
SOLOMON MUTUAL B 8.50 10/29/2014 KRW 49.78
SOLOMON MUTUAL B 8.10 04/19/2015 KRW 74.97
TOMATO MUTUAL SA 8.50 08/12/2014 KRW 71.95
TOMATO MUTUAL SA 7.90 07/18/2015 KRW 60.23
SRI LANKA
---------
SRI LANKA GOVT 5.35 03/01/2026 LKR 65.89
THAILAND
--------
THAILAND GOVT 0.75 01/04/2022 THB 71.37
VIETNAM
--------
VDB BOND 8.40 09/13/2011 VND 9.70
VDB BOND 8.40 01/15/2012 VND 9.50
VDB BOND 8.40 01/22/2012 VND 9.50
VDB BOND 8.10 01/26/2012 VND 9.50
VDB BOND 8.60 09/13/2016 VND 9.00
VIETNAM MACHINE 9.20 06/06/2017 VND 70.00
VIETNAM SHIPBUIL 9.00 04/13/2017 VND 52.67
*********
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, 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 ***