/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/110711.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, July 11, 2011, Vol. 14, No. 135 Headlines A U S T R A L I A RESIMAC BASTILLE: Moody's Gives to AUD4.8MM E Notes (P)Ba2 Rating TIGER AIRWAYS: Flight Ban Extended Until August 1; CEO Steps Down * AUSTRALIA: Corporate Insolvencies on the Rise, ASIC Says H O N G K O N G ENTIE COMMERCIAL: Fitch Affirms Individual Rating at 'C/D' LA CASCINA: Court Enters Wind-Up Order LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases LI YUEN: Lo and Leung Appointed as Liquidators LUCKY DRAGON: Court Enters Wind-Up Order MASTER MOTOR: Court to Hear Wind-Up Petition on July 20 MB INVEST: Court to Hear Wind-Up Petition on August 10 NARITA ELECTRONIC: Court to Hear Wind-Up Petition on August 3 PRINCE SAUNA: Arboit and Blade Appointed as Liquidators PROFITABLE PLOTS: Court Enters Wind-Up Order SANFORD DEVELOPMENT: First Meetings Set for July 12 SERENA ELECTRICAL: Court Enters Wind-Up Order SINO STATES: Hung and Yau Step Down as Liquidators SUCCESS TOP: Court Enters Wind-Up Order WELTA LIMITED: Court Enters Wind-Up Order I N D I A ARPIT PROJECTS: CRISIL Reaffirms 'B' Rating on INR1.54BB Term Loan BEEKAY PLAZA: CRISIL Assigns 'BB' Rating to INR80MM Term Loan BOHRA EXPORTS: CRISIL Reaffirms 'BB' Rating on INR110M Cash Credit CHETAN WOOD: Fitch Affirms National L-T Rating at 'D(ind)' GANDHAR COALS: CRISIL Reassigns 'B+' Rating on INR125MM Bank Loan HALDIA PETROCHEMICALS: Incurs INR247cr Loss in Q1, Mulls Shutdown KINGFISHER AIRLINES: Founders Pledge Entire Kingfisher Shares KOTARKI CONSTRUCTIONS: CRISIL Assigns 'B+' Rating to INR65MM Loan LUCID GEMS: ICRA Reaffirms '[ICRA]BB' Rating on INR8.5cr Loan MAGPPIE EXPORT: ICRA Raises Rating on INR20cr Loans to '[ICRA]B+' NRK OVERSEAS: ICRA Assigns '[ICRA]BB' Rating to INR4cr Bank Loan SHREE GOPAL: ICRA Places '[ICRA]BB-' Rating on INR18cr Cash Credit SHREE STEEL: CRISIL Reaffirms 'B+' Rating on INR25MM Cash Credit SHREE VENKATESH: CRISIL Rates INR375 Million Cash Credit at 'BB+' SWAPNA MOTORS: CRISIL Assigns 'BB' Rating to INR90MM Cash Credit SUNRISE NATURALS: CRISIL Assigns 'P4+' Rating to INR5MM ST Loan TRIDENT METAL: CRISIL Assigns 'D' Rating to INR61.2MM Term Loan VISHWAKRIYA HOUSING: ICRA Rates INR50cr LT Loan at '[ICRA] BB+' J A P A N CSFS GODO: Moody's Reviews Bonds Due 2013 for Possible Downgrade KENEDIX REALTY: Moody's Reviews 'Ba1' Rating for Possible Upgrade ORSO FUNDING: Moody's Cuts Ratings on Class D Notes to 'Ba3 (sf)' ORSO FUNDING: Moody's Changes Ratings of Class D - F Certificates PIONEER CORP: S&P Hikes Long-Term Corporate Credit Rating to 'BB-' M A L A Y S I A HONG LEONG BANK: Fitch Affirms Individual Rating at 'C' N E W Z E A L A N D NATHANS FINANCE: Directors Found Guilty of Securities Act Breach NEW ZEALAND WINE: Chief Executive Officer Steps Down SOUTH CANTERBURY: Helicopters NZ Sale Completed WINDFLOW TECHNOLOGY: Mulls Licensing IP to Overseas Manufacturers T A I W A N BANK OF TAIPEI: Fitch Affirms Individual Rating at 'C/D' PROMOS TECHNOLOGIES: Lenders Pessimistic on Debt Conversion Plan - - - - - ================= A U S T R A L I A ================= RESIMAC BASTILLE: Moody's Gives to AUD4.8MM E Notes (P)Ba2 Rating ----------------------------------------------------------------- Moody's Investors Service has assigned these provisional long-term rating to notes issued by Perpetual Trustee Company Limited in its capacity as trustee of RESIMAC Bastille Series Trust 2011-1NC. The transaction is a securitization of a portfolio of Australian non-conforming and limited documentation housing loans originated by RESIMAC Limited. Issuer: RESIMAC Bastille Series Trust 2011-1NC -- AUD40.0 million Class A-1 Notes, Assigned (P)Aaa (sf) -- AUD72.0 million Class A-2 Notes, Assigned (P)Aaa (sf) -- AUD52.0 million Class A-3 Notes, Assigned (P)Aaa (sf) -- AUD12.0 million Class B Notes, Assigned (P)Aa1 (sf) -- AUD8.0 million Class C Notes, Assigned (P)A2 (sf) -- AUD6.0 million Class D Notes, Assigned (P)Baa2 (sf) -- AUD4.8 million Class E Notes, Assigned (P)Ba2 (sf) The subordinated AUD5.2 million Class F Notes are not rated by Moody's. The ratings address the expected loss posed to investors by the legal final maturity. The structure allows for timely payment of interest and ultimate payment of principal with respect to the Class A-1, A-2, A-3, B, C, D and E Notes by the legal final maturity. "RESIMAC Bastille Series Trust 2011-1NC is the first non- conforming RMBS transaction issued by RESIMAC Limited and marks the second Australian non-conforming RMBS deal since the advent of the global financial crisis", says Jennifer Wu, Moody's analyst for the transaction. "The return of non-conforming RMBS demonstrates the continued strong credit conditions of the Australian market exhibited through the first half of 2011." she adds The mortgage loan portfolio backing RESIMAC Bastille Series Trust 2011-1NC is comprised of non-conforming loans extended to borrowers with clean credit history (64.1%) and prior credit impairment (35.9%). A large proportion of the pool (71.4%) represents loans extended on a limited documentation basis. The issuer will issue eight classes of notes with the senior Class A-1, Class A-2 and Class A-3 notes representing the senior Aaa-rated portion of the transaction. Ratings Rationale The provisional ratings take account of, among other factors: - The subordination provided to the Class A Notes by the mezzanine and junior notes, which is in excess of the credit enhancement of 15.5% consistent with Moody's Aaa (sf) credit enhancement. Moody's expected loss for this transaction is 1.6%. The subordination strengthens ratings stability, should the pool experience losses above expectations. - A liquidity facility -- equal to 2.5% of the outstanding amount of the notes, and which will be funded from the initial note issuance proceeds -- will provide liquidity support to the transaction. The reserve will amortize in line with the overall note balance, to a floor of AUD1.25 million. - The experience of RESIMAC Limited in servicing residential mortgage portfolios. While this is RESIMAC's first non- conforming RMBS transaction, RESIMAC is a relatively routine issuer of prime RMBS completing 18 term transactions. This highlights RESIMAC's experience as a manager and servicer of securitized transactions. The key transactional and pool features are: - The notes will initially be repaid on a sequential basis. Following the satisfaction of a number of conditions, including subordination to all classes of notes has doubled, and absence of un-reimbursed charge offs, the Class B, Class C, Class D and Class E notes will be repaid on a pari passu basis. The Class F notes will not step down. - The weighted average scheduled loan to value ratio of the pool is 71.5%. - The pool is over 20 months seasoned, which mitigates the risk of early payment default The principal methodology used in this rating was "Moody's MILAN Methodology for Rating Australian RMBS", published in December 2009. Volatility Assumption Scores and Parameter Sensitivities The V Score for this transaction is Medium/High, which is in line with the Medium/High score assigned for the Australian non- conforming RMBS sector. Compared to the sector, RESIMAC Bastille Series Trust 2011-1NC exhibits a greater potential for rating changes with regards to Quality of Historical Data for Issuer and Issuer Historical Performance Variability. This can be explained by RESIMAC's relatively limited experience in the non-conforming RMBS market, with RESIMAC first originating non-conforming loans in 2008. However due to RESIMAC's experience in servicing residential mortgage portfolios, arrears for the non-conforming portfolio consistently outperform Moody's market average arrears. The sector attracts higher volatility scores than Australian prime RMBS (Low/Medium). This can be primarily attributed to limited historical data available with the non-conforming sector first appearing only in the late 1990's and early 2000's. Similarly, while the performance of Australian non-conforming RMBS transaction has been to stable to date, the relatively small number of transactions issued to date heightens the degree of uncertainty with regard to future performance. V Scores are a relative assessment of the quality of available credit information and of the degree of uncertainty around various assumptions used in determining the rating. High variability in key assumptions could expose a rating to more likelihood of rating changes. The V Score has been assigned according to the report "V Scores and Parameter Sensitivities in the Asia/Pacific RMBS Sector", published in March 2009. Parameter Sensitivities are designed to provide a quantitative calculation of how the initial rating might change if key input parameters used in the initial rating process differed. The analysis assumes that the deal has not aged. Parameter Sensitivities only reflect the ratings impact of each scenario from a quantitative/model-indicated standpoint. In the case of RESIMAC Bastille Series Trust 2011-1NC, the levels of enhancement relative to those derived by Moody's, serve to insulate the Class A-1 and Class A-2 notes from rating variability. However, if the computed Aaa (sf) loss increases 1.3 times (i.e. to 20%), the class A-3 notes will face a one notch downgrade to (P)Aa1 (sf). Additionally, the Class B Notes face rating variability. If the computed Aaa (sf) loss increases by 1.3 and 1.6 times (i.e. to 20% and 25%), the (P)Aa1 (sf) ratings will be downgraded to (P)Aa2 (sf) and (P)Aa3 (sf) respectively. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Moody's ratings are subject to revision, suspension or withdrawal at any time at Moody's absolute discretion. The ratings are expressions of opinion and not recommendations to purchase, sell or hold securities. Moody's issues provisional ratings in advance of the final sale of securities and these ratings reflect Moody's preliminary credit opinion regarding the transaction. Upon a conclusive review of the final versions of all the documents and legal opinions, Moody's will endeavour to assign definitive ratings to the transaction. A definitive rating may differ from a provisional rating. TIGER AIRWAYS: Flight Ban Extended Until August 1; CEO Steps Down ----------------------------------------------------------------- SmartCompany reports that the future of Tiger Airways Australia remains in doubt as the aviation safety regulator grounded the troubled company for another three weeks and the airline's Australian chief executive prepared to leave. The move, SmartCompany relates, came after the airline stopped selling tickets on July 6 following Australian Competition and Consumer Commission chairman Graeme Samuel saying that allowing sales to continue without a disclaimer on the airline's trading position could possibly constitute misleading behavior. According to SmartCompany, the Civil Aviation Safety Authority said it would extend the grounding of Tiger Airways until August 1 pending the approval of an application in the Federal Court. "If CASA completes its investigations and determinations before Aug. 1, 2011, and is satisfied Tiger Airways Australia no longer poses a serious and imminent risk to air safety it may be possible for it to resume operations earlier," CASA said July 6. "The suspension of Tiger Airways Australia's operations remains in place until either the Federal Court refuses CASA's application or CASA withdraws it." CASA explained that the grounding is being extended because its investigations will not be able to be completed during the initial five-day ban, SmartCompany says. Following the announcement Tiger Airways said refunds would be given to passengers holding reservations between July 6 and July 31, the report notes. The carrier also said chief executive Crawford Rix would leave the company at the end of July and he will be replaced by Tony Davis, group president and chief executive of parent company Tiger Airways Holdings, SmartCompany adds. Tiger Airway, as cited by SmartCompany, said it is continuing discussions with officials and that it was never obligated to stop selling tickets in the first place, but analysts point out that the cost of the grounding will exceed $1 million a day and will prove a substantial financial hurdle. Nevertheless, Tiger said it "remains committed to resuming services as quickly as possible". Based in Melbourne, Victoria, Tiger Airways Australia is an ultra- low cost airline. It is a subsidiary of Tiger Airways Holdings, a Singapore-based company. As of April 2011, the Tiger Airways Australia fleet consists of 11 Airbus A320. * AUSTRALIA: Corporate Insolvencies on the Rise, ASIC Says ----------------------------------------------------------- Official figures released by the Australian Securities & Investments Commission on Friday reveal corporate insolvencies in Australia have risen 4.4% in the 2010-11 financial year to date. ASIC's Senior Executive Leader of the Insolvency Practitioners team, Adrian Brown, said that despite a decrease in external administration appointments in May compared to the same time last year, these latest figures show the number of court liquidations and director initiated creditors voluntary liquidations have risen. "Statistics collated by ASIC up to and including May 2011, show court liquidations in Australia rose 8.6% and director initiated creditors voluntary liquidations rose 7.6%. Western Australia is also seeing its fair share of corporate insolvencies, despite suggestions that it's in the fast lane of a two speed economy," Mr. Brown said. "Interestingly, receivership and voluntary administration appointments, Australia-wide, have fallen," Mr. Brown added. ================ H O N G K O N G ================ ENTIE COMMERCIAL: Fitch Affirms Individual Rating at 'C/D' --------------------------------------------------------- Fitch Ratings has affirmed EnTie Commercial Bank's National Long- term rating at 'A-(twn)' with Stable Outlook. At the same time, Fitch has affirmed EnTie's Individual Rating at 'C/D' and Support Rating at '5' and simultaneously withdrawn them. The Individual and Support Ratings have been withdrawn as these ratings are no longer considered by Fitch to be relevant to its coverage. The ratings reflect EnTie's adequate capitalization relative to its risk profile, and its reasonably sound asset quality and profitability. However, the ratings also consider the bank's small franchise and rather concentrated property-related exposure. A significant and sustainable improvement in core profitability and prudent asset quality control will benefit the bank's National Long-term rating. On the other hand, the bank's rather concentrated property-related exposures may pressure its rating if Taiwan's property market were to see a sharp correction. EnTie delivered a record-high bottom line in 2010 with a return of equity of 13.4% compared with 2.7% in 2009 (Q111: 7%; annualized and unaudited figure), underpinned by its improved fee income, subdued provision expense and favorable trading performance. Despite likely modest pressure on fee income due to a volatile capital market, Fitch expects the bank to deliver moderate profitability in 2011, backed by stable net interest margin and an adequately sound asset quality profile. The bank reported a low non-performing loan (NPL) ratio of 0.3% and sufficient coverage ratio of 130.2% at end-Q111, compared with 0.8% and 99.8% at end-2009. At end-Q111, EnTie's impaired loans (include 90-day NPL and restructured loans) were 2.3% of total loans. Because the bank's retail restructured loans -- which account for most of its impaired loans -- have seasoned and stabilized in their repeat default rate, provisioning risk should be manageable. EnTie maintained adequate capitalization, with a Tier 1 ratio of 9.53% and a capital adequacy ratio of 13.85% at end-Q111. The bank's liquidity profile is satisfactory, with a liquidity reserve ratio of 31.5% at end-Q111, much higher than the sector average of 27.7%. Formed in 1992, EnTie is a small private bank with a deposit market share of 1% at end-March 2011. Longreach Group, a Hong-Kong-based private equity firm, is its largest shareholder, with an equity stake of around 60%. EnTie's Ratings: -- National Long-term Rating affirmed at 'A-(twn)'; Outlook Stable -- National Short-term Rating affirmed at 'F2(twn)' -- Individual Rating affirmed at 'C/D'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn -- Senior unsecured debt affirmed at 'A-(twn)' -- Subordinated debt affirmed at 'BBB+(twn)' LA CASCINA: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on June 22, 2011, to wind up the operations of La Cascina Company Limited. The official receiver is Teresa S W Wong. LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases ----------------------------------------------------------------- The Hong Kong Monetary Authority (HKMA) announced June 24 that investigation of over 99% of a total of 21,804 Lehman-Brothers- related complaint cases received has been completed. These include: * 14,383 cases, which have been resolved by a settlement agreement reached under section 201 of the Securities and Futures Ordinance; * 2,591 cases, which have been resolved through the enhanced complaint handling procedures required by the settlement agreement; * 2,712 cases, which were closed because insufficient prima facie evidence of misconduct was found after assessment or no sufficient grounds and evidence were found after investigation; * 1,529 cases (including minibond cases), which are under disciplinary consideration after detailed investigation by the HKMA, of which proposed disciplinary notices are being prepared in respect of 747 such cases and proposed disciplinary notices or decision notices have been issued in respect of the other 782 cases; and * 461 cases in respect of which investigation work has been completed and are going through the decision process to decide whether there are sufficient grounds for disciplinary actions or whether the cases should be closed because of insufficient evidence or lack of disciplinary grounds. Investigation work is underway for the remaining 126 cases. A table summarizing the progress of the disciplinary and complaint-resolution work in respect of Lehman-Brothers-related complaints is available at http://ResearchArchives.com/t/s?7655 About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LI YUEN: Lo and Leung Appointed as Liquidators ---------------------------------------------- Lo Ka Ying and Leung Ka Lok said in notice dated July 1, 2011, they have been appointed by the High Court of Hong Kong as liquidators of Li Yuen Watch Case Manufacturing Company Limited on June 12, 2009. The liquidators may be reached at: Lo Ka Ying Leung Ka Lok Room 1307, Tower 1 Lippo Centre, 89 Queensway Admiralty, Hong Kong LUCKY DRAGON: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on June 2, 2011, to wind up the operations of Lucky Dragon Boat (Chaiwan) Restaurant Limited. The company's liquidator is Yuen Tsz Chun Frank. MASTER MOTOR: Court to Hear Wind-Up Petition on July 20 ------------------------------------------------------- A petition to wind up the operations of Master Motor Company Limited will be heard before the High Court of Hong Kong on July 20, 2011, at 9:30 a.m. Lee Man Kit Tony filed the petition against the company on June 3, 2011. The Petitioner's solicitors are: Simon Ho & Co Room 1502, 15th Floor Hong Kong Trade Centre 161 Des Vouex Road Central, Hong Kong MB INVEST: Court to Hear Wind-Up Petition on August 10 ------------------------------------------------------ A petition to wind up the operations of MB Invest Limited will be heard before the High Court of Hong Kong on Aug. 10, 2011, at 9:30 a.m. Koh Kee Huat John filed the petition against the company on June 3, 2011. The Petitioner's solicitors are: Lily Fenn & Partners Room D, 32nd Floor Lippo Centre, Tower 1 89 Queensway, Hong Kong NARITA ELECTRONIC: Court to Hear Wind-Up Petition on August 3 ------------------------------------------------------------- A petition to wind up the operations of Narita Electronic Company Limited will be heard before the High Court of Hong Kong on Aug. 3, 2011, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on May 27, 2011. The Petitioner's solicitors are: Messrs. Deacons 5th Floor, Alexandra House 18 Chater Road Central, Hong Kong PRINCE SAUNA: Arboit and Blade Appointed as Liquidators ------------------------------------------------------- Bruno Arboit and Simon Richard Blade on March 3, 2011, were appointed as liquidators of Prince Sauna Limited. The liquidators may be reached at: Bruno Arboit Simon Richard Blade 14/F, The Hong Kong Club Building 3A Chater Road Central, Hong Kong PROFITABLE PLOTS: Court Enters Wind-Up Order -------------------------------------------- The High Court of Hong Kong entered an order on June 22, 2011, to wind up the operations of Profitable Plots Limited. The official receiver is Teresa S W Wong. SANFORD DEVELOPMENT: First Meetings Set for July 12 --------------------------------------------------- Contributories and creditors of Sanford Development China Limited will hold their first meetings on July 12, 2011, at 10:00 a.m., and 11:00 a.m., respectively at John Lees Associates 20/F Henly Building 5 Queen's Road Central, in Hong Kong. At the meeting, Mat Ng, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SERENA ELECTRICAL: Court Enters Wind-Up Order --------------------------------------------- The High Court of Hong Kong entered an order on May 30, 2011, to wind up the operations of Serena Electrical MFG. (China) Company Limited. The company's liquidator is Yuen Tsz Chun Frank. SINO STATES: Hung and Yau Step Down as Liquidators -------------------------------------------------- Andrew George Hung and Yau Sun Yu Sonia stepped down as liquidators of Sino States Development Limited on June 7, 2011. SUCCESS TOP: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on June 22, 2011, to wind up the operations of Success Top Enterprises Limited. The official receiver is Teresa S W Wong. WELTA LIMITED: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on June 22, 2011, to wind up the operations of Welta Limited. The official receiver is Teresa S W Wong. ========= I N D I A ========= ARPIT PROJECTS: CRISIL Reaffirms 'B' Rating on INR1.54BB Term Loan ------------------------------------------------------------------ CRISIL's rating on the term loan facility of Arpit Projects Ltd continues to reflect APL's exposure to intensifying competition in the hotel industry, which may exert pressure on its cash accruals, and its promoters' limited industry experience. These rating weaknesses are partially offset by the company's management tie-up with Country Development & Management Services, thereby ensuring operational and brand support. Facilities Ratings ---------- ------- INR1.54 Billion Rupee Term Loan B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that APL will benefit from the locational advantage offered by the hotel. The outlook may be revised to 'Positive' if APL's debt protection metrics are better than expected. Conversely, the outlook may be revised to 'Negative' if APL contracts more-than-expected debt to fund its project, or if there is delay in commencement of commercial operations. APL was incorporated in 1995 in Rajasthan. It has entered into a memorandum of understanding with Gurgaon Recreation Park Ltd (GRPL) to purchase a four-star hotel in Gurgaon (Haryana), for which land was allotted by Haryana State Industrial Development Corporation. The purchase of the property has been delayed, because of delay in its completion by GRPL. The total cost of the project is expected to be INR2.32 billion, which will be funded with equity of INR0.78 billion and debt of INR 1.54 billion. APL has paid an advance of INR200 million to GRPL. BEEKAY PLAZA: CRISIL Assigns 'BB' Rating to INR80MM Term Loan ------------------------------------------------------------- CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank facilities of Beekay Plaza Pvt Ltd. Facilities Ratings ---------- ------- INR80 Million Term Loan BB/Stable (Assigned) INR5 Million Bank Guarantee P4+ (Assigned) The ratings reflect BPPL's exposure to risks related to completion of its ongoing projects, Barsana Garden Apartments and Hotel Beekay Residency, and to cyclicality inherent in the Indian real estate industry. These weaknesses are partially offset by the experience of BPPL's promoters in real estate development and proven project execution capabilities. Outlook: Stable CRISIL believes that BPPL will continue to benefit over the medium term from its promoters' industry experience and the steady demand for residential real estate projects in Siliguri (West Bengal). The outlook may be revised to 'Positive' if the company generates more-than-expected cash flows, on account of earlier-than-expected completion of its projects, and more-than-expected sales realizations from phase two of its Barsana Garden Apartments project. Conversely, the outlook may be revised to 'Negative' in case of delay in project completion or receipt of payments from customers, if the company is unable to completely sell phase two of Barsana Garden Apartments, which it is currently developing, at profitable rates, or if the company's financial risk profile deteriorates because of a larger-than-expected, debt-funded capital expenditure programme. About Beekay Plaza BPPL, promoted by Mr. Narendra Garg and Mr. Nirmal Garg, was incorporated in 2002 to undertake real estate development and property management in Siliguri. The promoters have a land bank of around 40 acres in West Bengal and plan to develop the land for the hospitality, residential, and health care sectors. BPPL reported a profit after tax (PAT) of INR6 million on sales of INR10 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR5 million on sales of INR10 for 2009-10. BOHRA EXPORTS: CRISIL Reaffirms 'BB' Rating on INR110M Cash Credit ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Bohra Exports Pvt Ltd continue to reflect the company's small scale of operations, exposure to risks related to cyclicality and to intense competition in the shipbreaking industry, and vulnerability to adverse regulatory changes. These rating weaknesses are partially offset by the benefits that the company derives from its promoters' experience in the shipbreaking industry and from the healthy growth prospects of the shipbreaking industry. Facilities Ratings ---------- ------- INR110.0 Million Cash Credit Limit BB/Stable (Reaffirmed) INR390.0 Million Letter of Credit P4+ (Reaffirmed) Outlook: Stable CRISIL believes that BEPL will continue to benefit over the medium term from its promoter's extensive experience in the shipbreaking industry, aided by current buoyancy in the industry. The outlook may be revised to 'Positive' if BEPL significantly improves its revenues and profitability, without adversely impacting its capital structure. Conversely, the outlook may be revised to 'Negative' if significant volatility in the prices of steel scrap leads to decline in BEPL's overall profitability. About Bohra Exports Set up in 1986, BEPL undertakes shipbreaking activities. It has capacity to break ships ranging from 800 tonnes to 50,000 tonnes at its 3015 square metre facility at Alang (Gujarat). The company also breaks ships at Mumbai port, by renting plots. BEPL initially traded in commodities and chemicals, and has been in the shipbreaking business since 1992. BEPL imports ships, breaks them into steel plates, and sells the same, directly or through a network of brokers, to the steel companies. BEPL, on a provisional basis, reported a profit after tax (PAT) of INR9.8 million on net sales of INR600.3 million for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR10.3 million on net sales of INR447.8 million for 2009-10. CHETAN WOOD: Fitch Affirms National L-T Rating at 'D(ind)' --------------------------------------------------------- Fitch Ratings has affirmed India's-based Chetan Wood Processing Private Limited's National Long-Term rating at 'D(ind)'. The agency has also affirmed CWPL's INR208 million long-term loans (reduced from INR250m) at 'D(ind)'. The ratings reflect CWPL's continuous delays in the repayment of its term loan obligations. The term loans have been taken by the company to extend long-term advances to the coffee estate owners for growing silver oak trees and supply of wood. Positive rating guidelines include regularity in the repayment of CWPL's bank facilities and an improvement in its revenues and profitability. Incorporated in 1990, CWPL is a Bangalore-based furniture manufacturer. In FY10 (financial year ended March 31, 2010), the company reported revenues of INR23.9 million (FY09: INR17.5 million) and EBITDA of negative INR4.5m (FY09: negative INR3.6 million). In FY11, it had revenue of INR66.2 million and a net loss of INR36.2 million as per the provisional figures. GANDHAR COALS: CRISIL Reassigns 'B+' Rating on INR125MM Bank Loan ----------------------------------------------------------------- CRISIL has assigned its 'B+/Stable' rating to the bank facilities of Gandhar Coals and Mines; the facility was earlier short-term in nature and was rated 'P4' by CRISIL. Facilities Ratings ---------- ------- INR125.0 Million Letter of Credit* B+/Stable (Reassigned) *Includes a cash credit sublimit of INR25.0 Million The rating continues to reflect GCM's weak financial risk profile and exposure to risks related to fluctuations in foreign exchange (forex) rates. These rating weaknesses are partially offset by the benefits that GCM derives from robust growth in the imported coal trading business, supported by healthy demand. Outlook: Stable CRISIL believes that GCM will register reasonable sales turnover levels on the back of strong demand for imported coal in India, over the medium term. The outlook may be revised to 'Positive' in case the firm successfully stabilises its operations (supplier base and buyers) resulting in stability in its profitability and cash flows. Conversely, the outlook may be revised to 'Negative' if GCM's financial risk profile deteriorates compared to the expected levels or if the firm takes large unsold positions thereby increasing its risks to forex volatility. About Gandhar Coals Set up as a partnership firm in June 2009, GCM trades in imported thermal coal in India. The firm is managed by Mr. Saurabh Parekh and his brother, Mr. Kunal Parekh. GCM belongs to the Gandhar group of companies, which also includes Gandhar Oils and Refineries Pvt Ltd (rated 'BBB+/Stable/P2' by CRISIL). Apart from India's western coast, the firm has also started operating through ports on the eastern coast of the country. HALDIA PETROCHEMICALS: Incurs INR247cr Loss in Q1, Mulls Shutdown ----------------------------------------------------------------- Haldia Petrochemicals Ltd has planned a shutdown, starting the third week of July, after incurring a hefty INR247-crore loss in the first quarter. The decision is part of HPL's bid to distance itself from the market for a while since polypropylene and ethylene prices have nosedived, the report says. HPL managing director Partha S Bhattacharya told ET, "Polymer prices have crashed over the past few months, which is impacting the company's margins. Accordingly, to tide over the situation, we've taken the decision to go in for a 12-18 day shutdown, beginning third week of July. This will help us stay away from creating an inventory in a falling market and also to carry out annual maintenance and repair work." Mr. Bhattacharya said increase in interest rates in China was largely affecting polymer markets. Small and medium enterprises in China are the life-blood of chemicals and polymer demand in China as most buyers belong to this category. Polyolefin exports that would have gone to China are now being diverted to Europe. This surplus availability in the global market is pushing down prices further, according to the report. "We hope the polymer market will recover from August. By the time the market sees some recovery we will be ready with our plant after repairs and maintenance work. We have suffered huge losses in Q1. We will have to recover from Q2 so that we can achieve a positive EBIDTA in the current fiscal," Mr. Bhattacharya told ET. Based in Kolkata, India, Haldia Petrochemicals Limited operates as a naphtha based petrochemical company. It offers low and high density polyethylene and polypropylene. The company also provides energy chemicals, such as motor-spirit, liquefied petroleum gas, pyrolysis gasoline, and carbon black feed stock/fuel oil; and industrial products, including benzene, butadiene, carbon black feed stock, and cyclo-pentane. It exports its products to Europe, the Middle East, and the South East. KINGFISHER AIRLINES: Founders Pledge Entire Kingfisher Shares ------------------------------------------------------------- Anirban Chowdhury at Dow Jones Newswires reports that Kingfisher Airlines Ltd. said Wednesday two of its founder companies have together pledged or used as collateral 115.5 million more shares, of India's second-biggest airline by market share. According to Dow Jones, United Breweries (Holdings) Ltd. on June 16 pledged 113.2 million shares while Kingfisher Finvest India Ltd. pledged an additional 2.3 million shares. With this, both companies have now pledged their entire shareholding in the airline, Dow Jones says. Kingfisher said the pledging of shares is part of the company's debt recast plan, Dow Jones notes. Earlier this year, Dow Jones recalls, Kingfisher implemented a debt recast plan that entailed conversion of 30% of its debt into shares and issuing those to lenders and founder companies, and restructuring the rest to a longer tenure. The recast helped the airline to cut the debt on its books to INR60.07 billion (US$1.35 billion) in January from INR76.51 billion last year, Dow Jones adds. About Kingfisher Airlines Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/-- formerly known as Deccan Aviation Ltd., serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known for its United Breweries unit, and the carrier shares the Kingfisher brand with a popular Indian beer. UB Holdings also owns a stake in another domestic carrier, Air Deccan, whose operations it combined with Kingfisher Airlines in mid-2008. Kingfisher Airlines began flying in 2005. * * * Kingfisher Airlines has lost money six years in a row, accumulating net debt of INR77.2 billion (US$1.74 billion) as of March 2010, according to data compiled by Bloomberg. KOTARKI CONSTRUCTIONS: CRISIL Assigns 'B+' Rating to INR65MM Loan ----------------------------------------------------------------- CRISIL has assigned its 'B+/Stable/P4' ratings to the bank facilities of Kotarki Constructions Pvt Ltd. Facilities Ratings ---------- ------- INR65 Million Cash Credit B+/Stable (Assigned) INR10 Million Letter of Credit P4 (Assigned) Rs .75 Million Bank Guarantee P4 (Assigned) The ratings reflect KCPL's working-capital-intensive operations and limited pricing power and bidding ability. These rating weaknesses are partially offset by KCPL's established presence in Karnataka region supported by the extensive experience of its promoter in the infrastructure industry. Outlook: Stable CRISIL believes that KCPL will benefit over the medium term from its promoter's extensive industry experience and its strong order book. However, its liquidity profile is expected to remain tight due to high working capital intensity. The outlook may be revised to 'Positive' if KCPL reports higher-than-expected revenue growth and maintains its profitability while efficiently managing its working capital. Conversely, the outlook may be revised to 'Negative' if KCPL faces significant delays in delivering orders or its liquidity weakens further because of large, incremental working capital requirements or build-up of debtors. About Kotarki Constructions Set up in 1989 as a proprietorship firm, KCPL was reconstituted as a private limited company in 2004. Mr. Kotarki Shankar is the company's managing director. KCPL undertakes road, civil construction, and construction of irrigation canals in Karnataka. The road works primarily include widening, operation, and maintenance of existing roads. KCPL reported a profit after tax (PAT) of INR10.0 million on net sales of INR264.22 million for 2009-10 (refers to financial year, April 1 to March 31), as against a PAT of INR8.81 million on net sales of INR230.63 million for 2008-09. KCPL is estimated to report revenues of INR280 million for 2010-11. LUCID GEMS: ICRA Reaffirms '[ICRA]BB' Rating on INR8.5cr Loan ------------------------------------------------------------- ICRA has reaffirmed the '[ICRA]BB' rating to INR8.50 Crore fund based bank facility of M/s Lucid Gems. The outlook for the long term rating remains 'Stable'. The rating favorably factors in the experience of the promoters in the cut and polished diamond (CPD) business along with the operational backing from the group concern engaged in similar line of business and company's conservative capital structure at present. The rating is, however, constrained by LG's weak performance characterized by stagnant operating income in the last two fiscals, losses at the net level in 2008-09 and 2009-10, though turned positive in 2010-11, and sizeable funds locked in receivables leading to high working capital requirements. The rating also takes into account the intense competitive pressure in the highly fragmented cut and polished diamond business and vulnerability of margins to volatility in foreign exchange fluctuations and prices of rough diamonds. ICRA has also factored in the legal status of LG as a partnership firm, and the risk inherent in such firms like withdrawal of capital by the partners. About Lucid Gems Promoted by Kamal Bhansali closely held by the promoters' family, Lucid Gems commenced business as a partnership firm in 1997. LG is engaged in manufacture and export of cut and polished diamonds. The firm has its office in Mumbai but does not have a manufacturing facility of its own. LG has backing from a related concern Core Jewellery Pvt Ltd engaged in the gold jewellery business with a factory in Andheri, Seepz. LG deals in diamonds of size from 0.001 to 1.5 carats. It markets the diamonds directly to the customers. Recent Results: LG recorded a net loss of INR0.78 Crore on an operating income of INR32.11 Crore for the year ending March 31, 2010 as per audited financials, and profit before tax of INR1.11 Crore on an operating income of INR33.19 Crore for the year ending March 31, 2011, as per provisional financials. MAGPPIE EXPORT: ICRA Raises Rating on INR20cr Loans to '[ICRA]B+' ----------------------------------------------------------------- ICRA has upgraded the long term rating assigned to INR20.00 crore bank facilities of Magppie Export Private Limited from 'LB' to '[ICRA] B+'. The revision of the rating favorably takes into account relative improvement in financial profile of the company as evidenced by improvement in profitability and consequently debt coverage indicators. ICRA notes that owing to severe economic slowdown and extreme volatility in exchange rates MEPL's operating profitability recuperated from negative levels in FY2009 to ~8% in subsequent periods, which was also aided by appreciation of the rupee in FY2010 and later due to increased offtake on the back of resurgence in consumption sectors..Being an importer of stainless steel sheets and coils from China, MEPL had an adverse impact on its purchase costs due to the anti-dumping duties imposed on the imports from China during FY 10; nevertheless the impact on MEPL's profitability was partially mitigated by its effort to increase high sea sales against advance license and increase procurement from domestic sources. As against 1% of purchases from domestic sources in FY 2009, MEPL's sourcing stood at 20% from domestic sources in FY 2010; thereby making the impact of anti-dumping duties less pronounced. The rating also factors in the fact that the company's reliance for offtake on group entities like Magppie International Limited remained moderate in the previous fiscal (FY2011). While this provides low visibility of potentially captive stream of revenues offered by group entity, it also alleviates client concentration risk of the company. Nevertheless, ICRA's rating continues to remain constrained by intensely competitive nature of industry, its modest scale of operations, its susceptibility to adverse movements in traded good prices, and its vulnerability to foreign exchange fluctuations. The rating also remains inhibited by weak capital structure (as reflected by an unadjusted gearing of -12x as on Feb. 28, 2011) despite an improvement in profitability and equity infusion in FY2010. MEPL's debt primarily comprised of working capital borrowings, the reliance on which remained high on account of high working capital intensity primarily driven by high receivable days and limited credit period from its suppliers. The rating however continues to draws comfort from established track record of the promoters in the stainless steel industry and strong relationships with the suppliers in the overseas market. Going forward, company's ability to sustain offtake in the backdrop of adverse regulatory environment, maintain healthy profitability and effectively prune its working capital cycle will remain the key rating sensitivities. About Magppie Exports Incorporated in 1994, Magppie Exports Private Limited was promoted by the Jain family having more than a decade of experience in the stainless steel industry. MEPL belongs to the Magppie group and is engaged in import of stainless steel sheets and coils used for consumption by kitchenware and bar accessories industries. For financial year ending Feb. 28, 2011, the company reported an operating income of INR62.54 crore and a net profit of INR2.20 crore as against a topline of INR52.70 crore and a net profit of INR.0.77 crore in the previous fiscal (FY2010). NRK OVERSEAS: ICRA Assigns '[ICRA]BB' Rating to INR4cr Bank Loan ---------------------------------------------------------------- ICRA has assigned an '[ICRA]BB' rating to INR4.00 Crore fund based bank facility of NRK Overseas (India). ICRA has also assigned an '[ICRA]A4' rating to the INR1.50 Crore non-fund based bank facility of NRK. The outlook assigned to the long term rating is 'Stable'. The ratings derive comfort from the promoter's established track record in the garment manufacturing industry, sustained growth in the operating income over the last few years and its moderately diversified product portfolio. The ratings are, however, constrained by the company's modest scale of operations and weak profitability and coverage indicators. The liquidity position is also tight as reflected in consistently full utilization of limits. Moreover, competitive nature of the industry and competition from low-cost countries exert pressure on the margins. About NRK Overseas NRK Overseas (India) was incorporated in the year 1994 as a proprietary concern by Mr. Rakesh Kabra who is actively involved in the business of the company. It is engaged in the manufacture of formals, casuals and jeans wear for men, women and children. The manufacturing facility has an installed capacity to produce 800 pieces per month. NRK has a registered office in Mumbai and a manufacturing unit at MIDC, Nabale in district Thane. Recent Results: NRK recorded a net profit after tax of INR0.27 Cr on an operating income of INR35.98 Cr for the year ending March 31, 2011, and a net profit after tax of INR0.23 Cr on an operating income of INR24.66 Cr for the year ending March 31, 2010. SHREE GOPAL: ICRA Places '[ICRA]BB-' Rating on INR18cr Cash Credit ------------------------------------------------------------------ ICRA has assigned a long-term rating of '[ICRA]BB-' to the INR18.00 crore Cash Credit facility of Shree Gopal Tradex Private Limited. ICRA has also assigned '[ICRA]A4' rating to INR11.00 crore Letter of Credit facility of SGTPL. The outlook on the long-term rating is stable. The ratings are constrained by SGTPL's limited track record of operations, intensely competitive nature of the business characterized by low margins and vulnerability of its profits to fluctuations in product prices. The ratings also take into account SGTPL's modest scale of operations and its exposure to adverse movement in foreign exchange movement. However, the ratings draws comfort from SGTPL's experienced promoters with long track record in trading of agricultural commodities, strong revenue growth in the last two years and its established relations with key customers which have enabled it to secure repeat orders from them in the past. Further, the company plans to expand its dry fruit processing activities which is expected to improve its profitability going forward. Incorporated in June 2008, Shree Gopal Tradex Private Limited is engaged in trading of dry fruit including Pistachios, Almonds, Cashew Nuts, Pulses, Spices, Herbs and Kiryana Goods. In addition, the company is also presently involved in processing of dry fruits. The company commenced its commercial operations from the third quarter of 2008. SGTPL is a closely held company promoted by Mr. Anurag Garg and his family members. The group also has two retail outlets in Khari Baoli, the largest dry fruit and spices market in North India. In FY2011, the company reported operating income (provisional) of INR172.07 crore and profit after tax (provisional) of INR1.54 crore. SHREE STEEL: CRISIL Reaffirms 'B+' Rating on INR25MM Cash Credit ---------------------------------------------------------------- CRISIL's ratings on the bank facilities of Shree Steel Impex continue to reflect SSI's below-average financial risk profile, marked by a small net worth and a moderately leveraged capital structure, small scale of operations, and exposure to intense competition and cyclicality in the steel industry. These rating weaknesses are partially offset by the business experience of SSI's promoters and the firm's established relationships with its customers and suppliers. Facilities Ratings ---------- ------- INR25 Million Cash Credit-Book Debt B+/Stable (Reaffirmed) INR32.5 Million Letter of Credit P4 (Reaffirmed) Outlook: Stable CRISIL believes that SSI will continue to benefit over the medium term from its promoters' experience in the steel trading business. The company's financial risk profile, however, is expected to remain below-average, on account of a highly leveraged capital structure. The outlook may be revised to 'Positive' if SSI significantly increases its scale of operations and profitability, while strengthening its capital structure. Conversely, the outlook may be revised to 'Negative' if SSI's working capital management weakens, leading to additional pressures on its liquidity. Update SSI's revenues and net profit for 2010-11 (refers to financial year, April 1 to March 31) have been lower than those in 2009-10. For 2010-11, the firm's revenues are estimated at INR219.6 million (34 per cent lower than the previous year) and net profit at INR0.60 million (40 per cent lower than the previous year). SSI extends a credit of around 80 days to its customers. Outstanding debtor levels have reduced in 2010-11; however, the decrease has been because of lower sales in that year. The debtor levels are expected to increase in case of increase in sales in the future; debtors outstanding as on March 31, 2011 were estimated at around INR38.3 million (60 days' sales). SSI maintains an inventory of around 30 days to meet its market demand. The working capital requirements of the firm have been moderate; however, they might increase in the future because of increase in revenues. SSI's capital structure has improved compared to the previous year, because of lower debt exposures resulting from decrease in revenues; the ratio of total outside liabilities to tangible net worth was around 2.3 times as on March 31, 2011. The ratio might increase in the future, along with an increase in revenues. About Shree Steel Based in Mumbai (Maharashtra), SSI was set up as a partnership firm in 2003 by Mr. Pukharaj Shah and his family. Mr. Shah has been in the steel trading business for more than two decades. SSI trades in steel products, such as steel rods, bars, sheets, and pipes, both stainless steel and mild steel; most of these products find application in the automobile industry. SHREE VENKATESH: CRISIL Rates INR375 Million Cash Credit at 'BB+' ----------------------------------------------------------------- CRISIL has assigned its 'BB+/Stable' rating to the cash credit facility of Shree Venkatesh Buildcon Pvt Ltd. Facilities Ratings ---------- ------- INR375 Million Cash Credit BB+/Stable (Assigned) The rating reflects SVBPL's exposure to risks related to demand, funding, and implementation of its ongoing residential projects, geographical concentration in its revenue profile, small scale of operations, and cyclicality inherent in the real estate industry. These rating weaknesses are partially offset by the extensive industry experience of, and equity infusion by, SVBPL's promoter and the positive initial response to the company's projects. Outlook: Stable CRISIL believes that SVBPL's business and financial risk profiles will remain sensitive to the timely completion of the ongoing projects and inflow of customer advances. The outlook may be revised to 'Positive' in case of better-than-expected booking of units and receipt of customer advances, and substantial progress of construction as per the proposed schedule. Conversely, the outlook may be revised to 'Negative' in case the company's liquidity weakens either due to delays in receipt of customer advances, time or cost overruns, or due to other large projects undertaken by SVBPL. About Shree Venkatesh Incorporated in 2010, SVBPL is promoted by Mr. Ankush Asbe. The company is part of the Venkatesh group based in Pune (Maharashtra) and is engaged in residential real estate development in the city. The group started undertaking real estate development in 2000-01 (refers to financial year, April 1 to March 31) and has completed around nine residential real estate projects. The group has booked revenues of around INR1.7 billion over the past four years. The group has three other ongoing projects that are being executed in other group entities. Currently, SVBPL is developing two residential projects - Lake Vista and Venkatesh Sharvil - with 653 flats and 186 flats, respectively. Construction of both the projects started in December 2010 and is expected to be completed by December 2013. SWAPNA MOTORS: CRISIL Assigns 'BB' Rating to INR90MM Cash Credit ---------------------------------------------------------------- CRISIL has assigned its 'BB/Stable' rating to the bank facilities of Swapna Motors Pvt Ltd. Facilities Ratings ---------- ------- INR90 Million Cash Credit BB/Stable (Assigned) INR3.9 Million Long-Term Loan BB/Stable (Assigned) The rating reflects SMPL's low bargaining power with its principal and stiff competition in the automotive dealership market, and average financial risk profile, marked by moderate capital structure and below-average debt protection metrics. These weaknesses are partially offset by the extensive experience of SMPL's promoters and its established position in the selected automobile dealership market. Outlook: Stable CRISIL believes that SMPL will maintain its business risk profile over the medium term, backed by its established market position in Orissa. The outlook may be revised to 'Positive' in case of improvement in capital structure and debt protection metrics on account of infusion of equity or significant improvement in operating margin and cash accruals. Conversely, the outlook may be revised to 'Negative' if SMPL's financial risk profile deteriorates due to a larger-than-expected, debt-funded capital expenditure programme or less-than-expected cash accruals. About Swapna Motors Incorporated in 2000, SMPL is an authorized dealer of the passenger cars and utility vehicles of Tata Motors Ltd (TML; rated 'AA-/Stable/P1+' by CRISIL) in Orissa, with an integrated facility in Bhubaneswar. The company deals in all the model variants of TML and two variants of Fiat EXPAND cars. Besides the Bhubaneswar facility, the company has showrooms in Puri, Jajpur, and Brahmapur (all in Orissa). The company is managed by its promoter, Mr. Badri Narayan Saha. SMPL reported a profit after tax (PAT) of INR5.9 million on net sales of INR1006.0 million for 2009-10, as against a PAT of INR0.3 million on net sales of INR670.9 million for 2008-09. SUNRISE NATURALS: CRISIL Assigns 'P4+' Rating to INR5MM ST Loan --------------------------------------------------------------- CRISIL has assigned its 'P4+' rating to the short-term bank facilities of Sunrise Naturals Pvt Ltd. Facilities Ratings ---------- ------- INR20 Million Standby Line of Credit P4+ (Assigned) INR100 Million Packing Credit P4+ (Assigned) INR5 Million Proposed Short-Term Bank P4+ (Assigned) Loan Facility The rating reflects the susceptibility of Sunrise's operating margin to availability of tropical fruits and to fluctuations in foreign exchange rates, and its average financial risk profile, marked by a small net worth, high gearing, and moderate debt protection metrics. These weaknesses are partially offset by the industry experience of Sunrise's management, the company's established customer relationships, and its moderate operating efficiencies. About Sunrise Naturals Sunrise was initially set up as a proprietorship concern by Mr. Hetal Joshi in 1998; the concern was reconstituted as a private limited company in April 2009. The business is managed by Mr. Joshi and his father, Mr. Mukund Joshi. Sunrise undertakes the processing of mango and guava into pulp. Mango pulp contributes a major chunk of the company's revenue (80%) with the balance coming from sale of guava pulp; these fruit pulp is further processed for making juices by the juice manufacturers. Sunrise exports its products to countries in the Middle East. The company sells the mango and guava pulp under its own brand name, Sunrise. Sunrise is estimated to have reported a profit after tax (PAT) of INR3.8 million on net sales of INR192.8 million for 2010-11 (refers to financial year, April 1 to March 31), as against a reported PAT of INR7.9 million on net sales of INR206.6 million for 2009-10. TRIDENT METAL: CRISIL Assigns 'D' Rating to INR61.2MM Term Loan --------------------------------------------------------------- CRISIL has assigned its 'D' rating to the bank facilities of Trident Metal Energy Pvt Ltd. The rating reflects instances of delay by Trident in servicing its debt; the delays have been caused by Trident's weak liquidity. Facilities Ratings ---------- ------- INR24.8 Million Cash Credit D (Assigned) INR61.2 Million Rupee Term Loan D (Assigned) Trident has a weak financial risk profile, marked by small net worth, high gearing, and weak debt protection metrics, large working capital requirements, and its scale of operations is small. These weaknesses are partially offset by the extensive experience of Trident's promoters in the battery industry and its strong distribution network. Established in 2008, Trident, promoted by the Agarwal family, is based in Ranchi (Jharkhand). It set up a refined-lead-cum-battery plant with an annual capacity of 3,600 tonnes of refined lead and 48,000 batteries. The battery manufacturing activity commenced in July 2009 and the lead manufacturing unit became operational in May 2011. The company is utilizing around 50% of its battery manufacturing capacity, catering mainly to the replacement market. Its product finds application in automobiles and invertors. These batteries are sold in a few states through a network of distributors, dealers, and consignment agents. Trident reported a net loss of INR1.5 million on net sales of INR9.0 million for 2009-10 (refers to financial year, April 1 to March 31), its first year of operations. VISHWAKRIYA HOUSING: ICRA Rates INR50cr LT Loan at '[ICRA] BB+' --------------------------------------------------------------- ICRA has assigned a rating of '[ICRA] BB+' rating with a 'stable' outlook to INR50 crore long term bank loans of Vishwakriya Housing Finance Limited. The rating factors in experienced management of VHFL, good knowledge of the target customer segment and huge growth opportunities in large un-tapped affordable housing market. The ratings are however constrained by the company's small size of operations; large expansion plans in relation to current size of operations, average risk profile of its target borrowers, relatively high operating expenses and geographical concentration of portfolio in NCR region which exposes the company to regional risks. Operational efficiencies would be achieved only after the company achieves a certain reasonable size of operations which along with its plans to expand the portfolio geographically would reduce the concentration risk to some extent. Earlier, the company was not covered under SARFAESI Act and did not have access to NHB refinance as it was not meeting pre- condition for minimum net worth of INR10 cr. In January 2011, the promoters infused INR5 crore in VHFL through Compulsorily Convertible Preference Shares (CCPS) which increased the company's net worth from INR4.6 crore as on March 2010 to INR10.07 crore as on March 2011; thus become eligible for SARFEAESI license and NHB refinance. Obtaining access to SARFAESI Act and NHB refinance lines would be critical for the company to scale-up operations. VHFL's focus on first-time home buyers, good underwriting norms (focus on Low LTV, low IIR), origination of loan through in-house sales team and good portfolio tracking systems remain the credit positives. Centralized operations and sanctioning authority and good underwriting norms resulted in good asset quality indicators (Gross NPA% at 0.59% on March 2011), although average seasoning of the portfolio is limited; going forward it would be important for the company to maintain adequate control over the larger portfolio base. ICRA has taken note of the on-going initiatives taken by the company to improve its internal control systems; however going forward, the ability of the company to manage the projected growth in portfolio, raise equity and debt to support the growth plans and protect its interest spreads would have an important bearing on the rating. Liquidity profile of the company is adequate owing to well-matched maturity of advances and borrowings; it would be important for VHFL to continue to arrange for longer-tenor debt to support its liquidity profile. About Vishwakriya Housing Vishwakriya Housing Finance Limited incorporated in the year 2000 and got registered with NHB in the year 2002, subsequently issued with permission to raise public deposits. VHFL has its corporate office and branch in Delhi and one service center at Faridabad. The target segment for the company is home loans to lower income borrowers with average ticket size of around INR7 lakhs. The company reported PAT of INR0.47 cr. on an asset base of INR20.78 crore in FY2011 vis-a-vis PAT of INR0.21 crore on an asset base of INR12.57 crore in FY2010. ========= J A P A N ========= CSFS GODO: Moody's Reviews Bonds Due 2013 for Possible Downgrade ---------------------------------------------------------------- Moody's Japan K.K has placed on review for possible downgrade the ratings on the Class A through F and Class X bonds issued by CSFS Godo Kaisha. The final maturity of the bonds occurs in November 2013. Class A-2-a / A-2-b / A-3 * Aa2 (sf) placed under review for possible downgrade; previously on July 29, 2010, downgraded to Aa2 (sf) from Aaa (sf) Class B-2 / B-3 * A3 (sf) placed under review for possible downgrade; previously on July 29, 2010 , downgraded to A3 (sf) from Aa2 (sf) Class C-2-a / C-2-b * Ba1 (sf) placed under review for possible downgrade; previously on July 29, 2010, downgraded to Ba1 (sf) from A3 (sf) Class D-2-a / D-2-b / D-3 * B1 (sf) placed under review for possible downgrade; previously on July 29, 2010 downgraded to B1 (sf) from Ba1 (sf) Class E-1 / E-3 * B3 (sf) placed under review for possible downgrade; previously on July 29, 2010, downgraded to B3 (sf) from B1 (sf) Class F-1/F-3 * B3 (sf) placed under review for possible downgrade; previously on July 29, 2010, confirmed at B3 (sf) Class X * Aa2 (sf) placed under review for possible downgrade; previously on July 29, 2010, downgraded to Aa2 (sf) from Aaa (sf) CSFS Godo Kaisha, effected in December 2006, represents the securitization of two non-recourse loans (senior and mezzanine loans) backed by seven single-tenant retail properties in Kanto, Chubu and Kinki areas. The two loans are backed by the same property pool. The scheduled amortization and the prepayment due to the sale of the properties will be allocated pro rata between the two loans. In case of default (the two loans cross-default), sequential payment will be applied according to the order of the collateral priority. The rating actions reflect Moody's growing concerns about the performance of the properties. Although the main tenant pays fixed rents on the underlying properties, Moody's needs to re-assess the rent levels and property cash flows, in light of the significant deterioration in the revenue and profitability on some of underlying stores. Moody's will therefore reconsider the stabilized property values. Moody's will assess the refinancing and disposal activities of the asset manager on the upcoming maturities, in addition to checking the performance of the properties. The principal methodology used in this rating was "Updated: Moody's Approach to Rating CMBS Transactions in Japan (June 2010)", published on September 30, 2010, and available on www.moodys.co.jp. KENEDIX REALTY: Moody's Reviews 'Ba1' Rating for Possible Upgrade ----------------------------------------------------------------- Moody's Japan K.K. has placed the Ba1 unsecured long-term debt ratings of Kenedix Realty Investment Corporation on review for possible upgrade. Rating Rationale The rating action is based on Moody's expectation that KRI's financial profile will improve significantly due its acquisition of properties with the proceeds of a public offering and conclusion of its de-collateralization process with a secured party, subject to the capital paid-in, as announced on July 5, 2011. According to the announcement, KRI concluded a memorandum concerning the de-collateralization with the secured party. Currently, 47 of its 70 properties, or JPY169.2 billion of JPY216.8 billion (based on an appraisal value as of the end of April 2011, approximately 78% of the value of its portfolio), and approximately JPY100.7 billion of loans out of approximately JPY112.7 billion in debt (approximately 89% of its total debt) are collateralized. And if the de-collateralization is implemented, the subordination of KRI's bonds will be therefore ended. On the same day, KRI announced it would raise approximately JPY15 billion through a public offering (which includes a third-party allotment). The proceeds will be used to purchase four properties totaling about JPY15 billion and this paid-in confirmation is one of the conditions precedent of de-collateralization. Furthermore, as the NOI yield of the four new properties is higher than KRI's current portfolio, this may help enhance KRI's profitability. Moody's review will focus on (1) the implementation of the public offering and de-collateralization process, (2) the extent of improvement in KRI's leverage, (3) the company's financial management plan after this public offering, and (4) the portfolio's profitability. The principal methodology used in this rating was Moody's Global Rating Methodology for REITs and Other Commercial Property Firms published on October 1, 2010, and available on www.moodys.co.jp. Please see ratings tab on the issuer/entity page on the Moody's website for the last rating action and the rating history. Kenedix Realty Investment Corporation, headquartered in Tokyo, is a listed J-REIT that invests in and manages mainly mid-level office properties. Its revenues totaled approximately JPY 8.1 billion for the fiscal half-year ended April 2011. ORSO FUNDING: Moody's Cuts Ratings on Class D Notes to 'Ba3 (sf)' ----------------------------------------------------------------- Moody's Japan K.K has downgraded its ratings on the Class B through E Notes issued by Orso Funding CMBS 8 Limited. The notes will mature in June 2022. Class B, downgraded to Aa3 (sf); previously on May 26, 2011 Aa2 (sf) Placed Under Review for Possible Downgrade Class C, downgraded to Baa1 (sf); previously on May 26, 2011 A2 (sf) Placed Under Review for Possible Downgrade Class D, downgraded to Ba3 (sf); previously on May 26, 2011 Baa2 (sf) Placed Under Review for Possible Downgrade Class E, downgraded to B2 (sf); previously on May 26, 2011 Ba1 (sf) Placed Under Review for Possible Downgrade Deal Name: Orso Funding CMBS 8 Limited Class: Class A-1 through E notes and Class X notes Issue Amount (initial): JPY151.6 billion Dividend: Floating Issue Date (initial): Nov. 27, 2007 Final Maturity Date*: June 2022 Underlying Asset (initial): A non-recourse loan and a specified bond Originator: Bear Stearns (Japan), Ltd., Tokyo Branch(as of issue date) Arranger: Bear Stearns (Japan), Ltd., Tokyo Branch(as of issue date) *If the Notes will not be paid in full by June 2022, Legal Final Maturity will be extended to June 2024. Orso Funding CMBS 8 Limited, effected in November 2007, represents the securitization of a bond and a loan backed by real estate. Orso Funding CMBS 8 Limited receives the interest/principal payments of the Bond and Loan, and subsequently uses the cash to pay the interest/principal of the rated Notes. The underlying assets were initially 184 properties leased to a single tenant. Rating Rationale The rating action reflects: 1) The recovery from a backing loan and a bond may fall below Moody's initial assumptions in November 2007, in light of the types of property and locations. Moody's has thus lowered its recovery assumptions by approximately 19% from its initial assumptions. 2) This rating action mainly reflects Moody's concern about the likelihood of collateral recovery in light of the re-assessed value. However Moody's has also taken into consideration the stable cash flow from the properties -- because of the credible tenant and the non-cancellable/fixed rent lease agreement. The principal methodology used in this rating was "Updated: Moody's Approach to Rating CMBS Transactions in Japan (June 2010)", published on September 30, 2010, and available on www.moodys.co.jp. Moody's did not receive or take into account any third party due diligence reports on the underlying assets or financial instruments related to the monitoring of this transaction in the past six months. ORSO FUNDING: Moody's Changes Ratings of Class D - F Certificates ----------------------------------------------------------------- Moody's Japan K.K has changed the ratings for the Class D through F Trust Certificates issued by Orso Funding CMBS 5 Trust. The final maturity of the Trust Certificates will take place in February 2013. Deal Name: Orso Funding CMBS 5 Trust Class D, Downgraded to B2 (sf); previously on June 10, 2011 Ba2 (sf) Placed Under Review for Possible Downgrade Class E, Downgraded to Ca (sf); previously on June 10, 2011 Caa1 (sf) Placed Under Review for Possible Downgrade Class F, Downgraded to C (sf); previously on June 10, 2011 Caa2 (sf) Placed Under Review for Possible Downgrade Class: Class A through F and Class X Trust Certificates Issue Amount (initial): JPY33.25 billion Dividend: Floating Transfer Date of Trust Certificates: August 21, 2006 Final Maturity Date: February 2013 Underlying Asset (initial): Seven non-recourse loans backed by commercial properties Originator/ Arranger: Bear Stearns Japan, Ltd. Tokyo Branch ("Seller", As of issued date) Asset Trustee: DB Trust Company Limited, Japan Orso Funding CMBS 5 Trust, effected in August 2006, represents the securitization of seven non-recourse loans. The Seller entrusted 7 non-recourse loans to the Asset Trustee and, in turn, received the Class A through F and X Trust Certificates. The Seller sold those Trust Certificates to investors. Those Trust Certificates are rated by Moody's. In this transaction, payment of the Trust Certificates will be made on a sequential basis in the event the collateral is liquidated if the loans default. Two of the loans were paid in full by their loan maturity dates. Additionally, special servicing for two of the loans -- which have defaulted -- has been completed. The transaction is currently secured by the three loans, which are under special servicing. Rating Rationale The current rating action reflects: (1) Given that the recovery from and the performance of the properties for the specially serviced loans remain lower than Moody's previous assumptions, the new estimate for disposal prices is approximately 26% lower than Moody's initial value. (2) After recovery activities, losses on the remaining loan are highly likely and could negatively affect the Class E and F Trust Certificates. (3) The resulting losses could lead to a reduction in the subordinated portion of the Class D Trust Certificates, and credit support for this class would decline. The principal methodology used in this rating was "Updated: Moody's Approach to Rating CMBS Transactions in Japan (June 2010)" published on September 30, 2010 and available on www.moodys.co.jp. Moody's did not receive or take into account a third party due diligence report on the underlying assets or financial instruments related to the monitoring of this transaction in the past six months. PIONEER CORP: S&P Hikes Long-Term Corporate Credit Rating to 'BB-' ------------------------------------------------------------------ Standard & Poor's Ratings Services raised to 'BB-' from 'B+' its long-term corporate credit rating on Pioneer Corp. "The upgrade reflects our opinion that structural reforms the company has undertaken have steadily strengthened its mainstay car electronics business and will increase the stability of its business performance and cash flow for the next few years. The outlook on the long-term corporate credit rating is stable," S&P stated. Pioneer has reduced its fixed costs over the past few years, streamlining domestic and overseas production, sales structures, and its workforce. In its mainstay car electronics business, the company is now geared more toward developing and manufacturing products that better reflect the regional needs of both developed and emerging markets than it was several years ago, and it has drastically cut costs for materials. As a result, Pioneer has enhanced the competitiveness of products it offers in popular price ranges as well as the competitiveness of its high-end products, which are its strongest product line. Therefore, Standard & Poor's believes Pioneer may increase earnings in its original-equipment manufacturing business, which supplies equipment to major domestic automakers, as well as its consumer market business. "Also, it is our opinion that Pioneer's structural reforms reduce the risk that the company will post further operating losses in its home electronics business over the next few years. Therefore, we believe the company is likely to continue to improve its business performance and cash flow in the next few years," S&P related. "The stable outlook reflects our view that Pioneer's strengthening of the foundation of its business is highly likely to underpin its credit quality for the time being, even under harsh business conditions. However, for a further rating upgrade, Standard & Poor's is of the opinion that the company would need to recover its net worth, which has declined substantially over the past four to five years due to repeated losses, prompting uncertainties about the company's liquidity. We may consider raising the rating on Pioneer if we see better prospects for the company to stage an early recovery in its capital structure and debt profile as earnings in its car electronics business steadily improve and it maintains its conservative financial policy. Conversely, we may lower the rating if the company's business performance falls substantially short of its plans for fiscal 2011 (ending March 31, 2012), thus reducing prospects for a recovery in its capital structure and debt profile, or if uncertainties over the company's liquidity resurface," S&P added. =============== M A L A Y S I A =============== HONG LEONG BANK: Fitch Affirms Individual Rating at 'C' ------------------------------------------------------- Fitch Ratings has upgraded Hong Leong Bank Berhad's Support Rating to '2' from '3' and revised its Support Rating Floor to 'BBB-' from 'BB+', while removing them from Rating Watch Positive (RWP) At the same time, all of EON Bank's ratings have been upgraded, removed from RWP, and withdrawn. The rating actions follow HLBB's announcement that on July 1, 2011, EON Bank's business, including all assets and liabilities, has been vested to HLBB, and that EON Bank has surrendered its banking license to the central bank. These developments follow HLBB's acquisition of EON Bank completed on May 6, 2011. The takeover transaction, originally announced in early 2010, had led to the above ratings being placed on RWP. The actions on the Support Rating and Support Rating Floor reflect Fitch's view of the bank's increased systemic importance as a result of the acquisition, which makes it the fourth-largest Malaysian bank by asset size and also increases its branch network. On a pro-forma basis, HLBB's combined market share of loans and deposits is respectively at 9% and 10%, up from 5% and 6% at end-March 2011 prior to the acquisition. The affirmation of HLBB's other ratings, including the 'BBB+' Long-Term Foreign-Currency Issuer Default Rating (IDR), reflects the bank's satisfactory financial fundamentals, after factoring in the capital-raising exercise put in place for the takeover of EON Bank. In particular, the agency expects HLBB to maintain sound core capitalization, and notes that the bank has increased the rights issue amount to MYR2.6 billion from MYR1.6 billion to accommodate major developments, including EON Bank's balance sheet growth and one-time dividend payment. Post acquisition, Fitch estimates HLBB's consolidated common-equity Tier 1 capital adequacy ratio (excluding Tier 1 hybrid securities) to be 8%-9%, a level comparable with those of large Malaysian banks. Although transitioning to and integrating within an enlarged banking entity may present challenges in the near to medium term, Fitch takes comfort from HLBB's conservative management record. This is reflected in the IDR's Stable Outlook. EON Bank's ratings have been upgraded to reflect the higher-rated acquiring bank HLBB. Its ratings have been withdrawn as EON Bank ceased to exist as a deposit-taking commercial bank on July 1, 2011. The senior notes are rated at the same level as HLBB's Long-term IDR as they constitute the bank's direct, unconditional and unsecured obligations and, hence rank equally with its unsecured and unsubordinated obligations. HLBB's ratings: -- Long-Term Foreign-Currency IDR affirmed at 'BBB+'; Outlook Stable -- Short-Term Foreign-Currency IDR affirmed at 'F2' -- Individual Rating affirmed at 'C' -- Support Rating upgraded to '2' from '3'; RWP removed -- Support Rating Floor revised to 'BBB-' from 'BB+'; RWP removed -- Long-term deposits affirmed at 'A-' -- Senior debt affirmed at 'BBB+' EON Bank's ratings: -- Long-Term Foreign-Currency IDR upgraded to 'BBB+' from 'BBB-'; Outlook Stable; RWP removed; rating withdrawn -- Short-Term Foreign-Currency IDR upgraded to 'F2' from 'F3'; RWP removed; rating withdrawn -- Individual Rating upgraded to 'C' from 'C/D'; RWP removed; rating withdrawn -- Support Rating upgraded to '2' from '3'; RWP removed; Rating withdrawn -- Support Rating Floor revised to 'BBB-' from 'BB'; RWP removed; rating withdrawn -- Long-term deposits upgraded from 'A-' from 'BBB'; RWP removed; rating withdrawn ==================== N E W Z E A L A N D ==================== NATHANS FINANCE: Directors Found Guilty of Securities Act Breach ---------------------------------------------------------------- Anne Gibson at nzherald.co.nz reports that former Nathans Finance directors Mervyn Doolan, Donald Young and Kenneth Moses have been found guilty on five charges of breaching the Securities Act. The men were on trial in the High Court at Auckland for a marathon 12 week stretch, from March 22 to June 16, nzherald.co.nz says. While found guilty on five charges, they have been acquitted on one other, the report relates. nzherald.co.nz says the former directors have been remanded on bail and will be sentenced on September 2, 2011. The convicted directors were to surrender their passports Friday, the report notes. According to the report, the Crown claimed the financial statements the directors -- including fourth director John Hotchin -- issued concerning related party lending to VTL, the quality of its loan book, its loan management practices and its management of liquidity were untrue. The Crown also said the directors made untrue statements in the company's offer documents of Dec. 13, 2006, and in a signed extension certificate on March 30, 2007, nzherald.co.nz relates. A fourth director, John Hotchin, was excused from the trial after pleading guilty to breaching the Securities Act in February, the report adds. Mr. Hotchin, according to nzherald.co.nz, avoided a jail term, in part for agreeing to testify against his former colleagues. He was sentenced to 11 months' home detention, ordered to do 200 hours of community service, and to pay the receivers NZ$200,000. About Nathans Finance Nathans Finance Ltd went into receivership when the finance company's trustee, Perpetual Trust Limited, appointed receivers on August 20, 2007. The company owed approximately NZ$174 million to some 7,000 investors. Nathans Finance is a wholly owned subsidiary of VTL Group Limited, which also went into receivership in November 2008. VTL Group owns a number of vending machine related businesses which operate in New Zealand, Australia, North America and Europe. NEW ZEALAND WINE: Chief Executive Officer Steps Down ---------------------------------------------------- The National Business Review reports that The New Zealand Wine Company said chief executive Rob White has elected to resign after eight years with the company. Peter Scutts stepped in for Mr. White as chief executive, effective immediately, after working for NZWC for the last year to improve wine sales in Australia, NBR relates. Mr. White, says NBR, will remain on for another two months to assist the new chief executive and the restructuring process of the company in general. According to NBR, Maurice McQuillan also retired from the company as director after 17 years. No replacement director will be appointed and the board will operate with five directors. As reported in the Troubled Company Reporter-Asia Pacific on June 29, 2011, BusinessDay.co.nz said The New Zealand Wine Company wants bankers to hold an independent review of its finances and business model, after a significant breach of its loan terms. The company, which owns brands including Grove Mill and Sanctuary, warned the NZX on June 27 that it would be in breach of its loan agreement with ANZ, which stipulates that its underlying earnings must be at least 1.3 times its interest costs. NZWC, which had revenues of more than NZ$13 million last year, said it would miss the condition by a "significant" margin. BusinessDay.co.nz said ANZ has waived the breach on the condition of an independent review of its forecasts and business model. However, if the bank is not satisfied it could call in its loan facilities. The New Zealand Wine Company Limited (NZE:NWC) -- http://www.nzwineco.co.nz/-- is an integrated wine company producing table wines operating wholly within the New Zealand wine industry. The Company grows grapes to use in the production of wine. NZWC's vineyards are located in Marlborough, New Zealand. As of June 30, 2010, the Company held approximately 292,000 grape vines planted on approximately 122 hectares of land owned or leased by NZWC. As of June 30, 2010, 112 hectares are in commercial production. Its brands include Grove Mill, Sanctuary and Frog Haven. The company exports its products in the United Kingdom, the United States and Australia. SOUTH CANTERBURY: Helicopters NZ Sale Completed ----------------------------------------------- Canadian Helicopters Group Inc. said it has completed its previously announced acquisition of the assets of Helicopters (N.Z.) Limited, including the shares of Helicopters (Australia) Pty Ltd and other wholly owned active subsidiary companies, as well as the assets of Helicopter Nominees Limited. The Transaction purchase price at closing was NZ$154 million. The reduction of the previously announced Transaction purchase price of NZ$160 million resulted primarily from a downward price adjustment due to the exercise by Totally Tourism Limited of its pre-emptive right to acquire HNZ's 50% interest in Glacier Helicopters Holdings Limited. The financial impact of HNZ's interest in Glacier was not material in the twelve months ended Dec. 31, 2010. In connection with the closing of the Transaction, CHL entered into a new revolving credit facility totaling C$125 million with National Bank of Canada, Caisse centrale Desjardins and Canadian Western Bank as lenders. The new credit facility replaces CHL's previous revolving credit facility. The Transaction was funded with a combination of cash on hand and a C$93 million drawdown on the new credit facility. As reported in the Troubled Company Reporter-Asia Pacific on April 14, 2011, The National Business Review said Helicopters (NZ), owned by South Canterbury Finance, has entered into a sale and purchase agreement to sell the assets to Canadian Helicopters Group for $160 million on a debt free basis. HNZ is New Zealand's biggest helicopter company. HNZ's head office is in Nelson and the company has 11 bases to support operations across New Zealand, Australia, Laos and Cambodia. HNZ also has a corporate office in Perth to support its Australian operations. Canadian Helicopters, listed on the Toronto Stock Exchange, is the largest helicopter transportation services company operating in Canada and is also one of the largest in the world based on the size of its fleet. About South Canterbury Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA) -- http://www.scf.co.nz/-- is engaged in the provision of financial services. The Company's principal activities are borrowing funds from public and institutional investors and on lending those funds to the business, plant and equipment, property, rural and consumer sectors. It typically advances funds by means of hire purchase, floor plans, leasing of plant, vehicles and equipment, personal loans, business term loans and revolving credit facilities, mortgages against property, and other financial instruments, including consumer loan insurance. On August 31, 2010, Trustees Executors Limited, as trustee for South Canterbury Finance charging group, appointed Kerryn Downey and William Black of McGrathNicol as receivers of the charging group's secured assets. "As Trustee, we have had South Canterbury Finance under heightened surveillance since 2008. As part of that, SCF was granted a Trustee waiver in February 2010 to allow it time to recapitalize. Unfortunately, the Company's Directors have advised us that they have not been successful with respect to a recapitalization and requested us to appoint a receiver. At this point we, as Trustee, agree that it is the best interests of debenture, deposit and bond holders to do that," said Yogesh Mody, Southern Regional Manager for Trustees Executors Limited. The New Zealand government said it would repay South Canterbury's 35,000 depositors and stockholders NZ$1.6 billion under the crown retail deposit guarantee scheme. WINDFLOW TECHNOLOGY: Mulls Licensing IP to Overseas Manufacturers ----------------------------------------------------------------- BusinessDay.co.nz reports that Windflow Technology is looking to license its intellectual property to overseas manufacturers which will cost jobs in New Zealand. BusinessDay.co.nz relates that the company is also looking at renting out its Riccarton manufacturing space, saying the wind turbine market in New Zealand has "stalled". The British market had also failed to deliver the orders Windflow's British distributor had expected, the report says. According to the report, the company had been hoping to take advantage of a market created by a British government feed-in tariff scheme offering incentives for small scale, low-carbon electricity generation but in February, the British government announced a review. "The consequent immediate gap in our sales and production pipeline has resulted in staff cutbacks and a fundamental uncertainty which the directors signalled in early June," BusinessDay.co.nz quotes Windflow chief executive officer Geoff Henderson as saying. The company, according to BusinessDay.co.nz, intended to license its intellectual property and design which would mean manufacturing of the Windflow turbines for some markets would take place overseas. "While not necessarily the best economic option for New Zealand as jobs would disappear offshore, it will likely be one of the best ways to realize shareholder value going forward," Mr. Henderson said. About Windflow Technology Christchurch, New Zealand-based Windflow Technology Limited -- http://www.windflow.co.nz/-- is engaged in the development and manufacture of wind turbines. The Company's wholly owned subsidiaries include, Wind Blades Ltd, Pacific Windfarms Ltd and Windflow Hawaii Ltd. The Company has one customer, NZ Windfarms Ltd. Wind Gears Ltd is owned 50% by Windflow Technology Limited. Wind Gears Ltd is engaged in the development and construction of gear boxes for the wind turbines. Windpower Otago Ltd is owned 20% by the Company. * * * Windflow Technology incurred a net loss of NZ$7.95 million in the financial year ended June 30, 2010, compared with the NZ1.23 million loss booked in the prior financial year. The company posted a net loss of NZ$1.45 million for the year ended June 30, 2008. =========== T A I W A N =========== BANK OF TAIPEI: Fitch Affirms Individual Rating at 'C/D' ------------------------------------------------------- Fitch Ratings has affirmed Bank of Taipei's National Long-term rating at 'A-(twn)' with Stable Outlook and its National Short- term rating at 'F1(twn)'. At the same time, Fitch has affirmed BOTP's Individual Rating at 'C/D' and Support Rating at '5' and simultaneously withdrawn them. The Support and Individual Ratings have been withdrawn as these ratings are no longer considered by Fitch to be relevant to its coverage. The affirmation of BOTP's ratings reflects its strong capital buffer and sound asset quality. The strengths are tempered by the bank's small franchise, its weak core banking earnings and high credit exposure in property-related loans relative to its domestic peers. The Stable Outlook reflects Fitch's expectation that the bank will maintain its sound asset quality and adequate liquidity and capitalization under its more commercially-oriented business model. Any serious deterioration in asset quality and/or capital position due to BOTP's pursuit of aggressive loan expansion would lead to negative rating action. BOTP reported strong profits in 2010, benefiting from substantial gains on property disposal, higher fee income and bad debt recoveries. Fitch notes that absent these one-off items the profitability from the bank's core businesses was weak and, if sustained, may lead to negative rating action. Nonetheless, asset quality is robust, with non performing loans (NPLs) at a low 0.16% of gross loans and strong reserves at 536% of NPLs at end-Q111. Fitch notes that BOTP's property-related lending increased rapidly in 2010. Given the substantial increase in property prices since 2003, the asset quality of these new loans may be exposed to a sharp correction of the property market. BOTP has been well-capitalized with reasonably sound quality of capital. Its Tier 1 capital stood at 11.6% at end-Q111 (industry average: 9.4%). BOTP has maintained a satisfactory liquidity profile with a loan-to-deposits ratio of around 80% at end-Q111. BOTP is the smallest bank in Taiwan in terms of asset size. It was founded as a mutual credit organization in 1917 before it was upgraded to a small regional commercial bank in mid-2007. Shinkong Synthetic Fibers Corporation is BOTP's largest shareholder with a 24.8% interest. PROMOS TECHNOLOGIES: Lenders Pessimistic on Debt Conversion Plan ---------------------------------------------------------------- Crystal Hsu at The Taipei Times reports that creditor banks for ProMOS Technologies Inc. on Thursday frowned on the memory chipmaker's offer of new shares to pay down loans, saying the arrangement could not rescue the loss-making firm in the absence of fresh capital. According to the report, the company announced plans on Wednesday to cut its capital by 85%, seek out a strategic partner and offer 1.5 billion new shares to creditor banks to ease its financial woes. The Taipei Times says the attempt to convert its debts into shares would allow creditor banks to own a nearly 40% stake in ProMOS after the firm proposed reducing its capital to NT$3.82 billion (US$132.19 million) from the current NT$25.43 billion. "That would be the worst-case scenario for creditor banks," said York Lai, executive vice president of Hua Nan Commercial Bank, the banking arm of Hua Nan Financial Holding Co, according to Taipei Times. ProMOS owes NT$57 billion in a syndicated loan to more than 20 domestic state-run and private -lenders, Taipei Times discloses. "The debt conversion would serve only to delay a loan default unless ProMOS can come up with a successful business strategy," Taipei Times quotes Mr. Lai as saying. Hua Nan Bank, which has set aside a 30% provision of a NT$4.87 billion loan to ProMOS, prefers not to take any stake in the firm, given the bleak outlook for the DRAM sector, Mr. Lai said. First Commercial Bank, the flagship unit of state-run First Financial Holding Co, echoed the pessimism, Taipei Times adds. Taipei Times relates that First Bank executive vice president Lin Hann-chyi said the debt conversion plan would require the removal of legal obstacles because existing rules prohibit banks from acquiring more than 5% of shares in non-financial firms. "We would rather absorb the default and pull out of the mess," Taipei Times quotes Mr. Lin as saying. First Bank, which last month raised the provision to 75% of a NT$1.8 billion loan to ProMOS, is braced for the default and will survive unscathed now that the risk looms larger, Mr. Lin added. ProMOS continued operating in the red for the 16th consecutive quarter, posting net loss of NT$4.26 billion in the first quarter of 2011, DIGITIMES reported. Taipei Times says the company risks being delisted from the over- the-counter GRETAI Securities Market if it fails to reverse net losses for the first half. The data is due out next month. ProMOS Technologies Inc. -- http://www.promos.com.tw-- is a semiconductor memory solution provider in Taiwan. The Company is principally engaged in the research, design, development, manufacture and sale of synchronous dynamic random access memories (SDRAMs), as well as the related import and export businesses. The Company provides 64 megabytes (Mb), 128 Mb and 256Mb SDRAMs, 128Mb, 256Mb and 512Mb double data rate (DDR) SDRAMs and others. ********* 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 ***