/raid1/www/Hosts/bankrupt/TCRAP_Public/110823.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, August 23, 2011, Vol. 14, No. 166
Headlines
A U S T R A L I A
BLUESCOPE STEEL: Closes 2 Production Facilities; Axes 1,000 Jobs
COLORADO GROUP: Creditors Agree on Plan to Revive Business
COVERT DIRECT: Creditors Opt to Wind Up Clothing Brands
GORDON RAMSAY: Puts Maze Melbourne Restaurants In Liquidation
JUBILEE CENTRAL: Owners Confirm Business Goes Into Administration
RELIANCE RAIL: Moody's Reviews 'B3' Sr. Debt Rating for Downgrade
TRLIN BUILDERS: In Administration, Owes More Than AUD11 Million
C H I N A
CHINA RUITAI: Reports US$1.3 Million Second Quarter Net Income
SINOTECH ENERGY: Investor Sues Over Securities Violations
H O N G K O N G
ACTIVE-7 OPTICAL: Court to Hear Wind-Up Petition on Oct. 12
ASTON GROUP: Wardell and Ip Step Down as Liquidators
BLAZE CONCEPT: Court Enters Wind-Up Order
COMPACT CONSTRUCTION: Contributories, Creditors to Meet Sept. 2
DAILY RANK: Court to Hear Wind-Up Petition on Oct. 12
ETONE TELECOM: Court to Hear Wind-Up Petition on Sept. 7
FOOT HOUSE: Court to Hear Wind-Up Petition on Oct. 12
GOLDEN PHASE: Court to Hear Wind-Up Petition on Oct. 12
ROAD KING: S&P Puts 'BB-' Corp. Credit Rating on Watch Negative
TREASURE RESTAURANT: Final Meetings Set for Sept. 20 to 21
TREASURE SEA: Final Meetings Set for Sept. 20 to 21
ZFIC LIMITED: Creditors' Proofs of Debt Due Sept. 19
I N D I A
ALLIANCE ONE: CRISIL Cuts Rating on INR150MM Loan to 'CRISIL BB+'
CINE INDIA: CRISIL Rates INR100 Million LT Loan at 'CRISIL B'
COSMIC FERRO: Fitch Affirms 'BB+(ind)' National Long-Term Rating
COSMO GRANITES: CRISIL Assigns 'CRISIL BB-' Rating to INR5MM Loan
ESCORT LIMITED: Fitch Migrates Rating on INR1.6BB Loan to BB(ind)
GANGA ACROWOOLS: CRISIL Ups Rating on INR975MM Loan to CRISIL BB-
GAUTAM STAINLESS: CRISIL Rates INR50MM Term Loan at 'CRISIL B'
GLASTRONIX: CRISIL Places 'CRISIL BB+' Rating on INR100MM Loan
GOLD KING: CRISIL Assigns 'CRISIL BB-' Rating to INR25MM LT Loan
HI GRADE: CRISIL Cuts Rating on INR14MM LT Loan to 'CRISIL D'
IND SPHINX: CRISIL Raises Rating on INR188MM Loan to 'CRISIL B+'
JSS STEELITALIA: CRISIL Reaffirms 'CRISIL BB-' Cash Credit Rating
KAPIL SOLVEX: CRISIL Assigns 'CRISIL B+' Rating to INR60MM Loan
MERIDIAN APPARELS: Inadequate Info Cues Fitch to Withdraw Ratings
NAVYA INDUSTRIES: CRISIL Rates INR50MM LT Loan at 'CRISIL D'
NIZAM DECCAN: CRISIL Cuts Rating on INR556.9MM Loan to 'CRISIL D'
P.I. JEWELLERS: CRISIL Rates INR160MM Cash Credit at 'CRISIL BB-'
PARAGON SYNTHETICS: CRISIL Puts CRISIL B Rating on INR35.5MM Loan
PRIME GOLD: CRISIL Assigns CRISIL BB Rating to INR65MM Term Loan
PURNA GLOBAL: CRISIL Rates INR144.6-Mil. Term Loan at 'CRISIL D'
RUDRA TECHNO: Limited Track Record Cues Fitch to Put Low-B Rating
RUHATIYA COTTON: CRISIL Ups Rating on INR70MM Loan to 'CRISIL B'
SHRI PARIYUR: Inadequate Info Cues Fitch to Withdraw 'B' Rating
SREE DHANYA: Inadequate Info Cues Fitch to Withdraw Low-B Ratings
STORK FERRO: Debt Payment Delays Cue Fitch to Cut Rating to 'C'
SUEET & ASSOC: Consistent Growth Cues Fitch to Put Low-B Ratings
SWARN SARITA: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating
VELANKANI INFRA: CRISIL Cuts Cash Credit Rating to 'CRISIL B-'
VIRAJ STEEL: CRISIL Assigns 'CRISIL D' Rating to INR150MM Loan
J A P A N
L-JAC 3: Moody's Reviews 'B2' Rating on Class D-1 Certificates
L-JAC 5 TRUST: Moody's Reviews 'Ca' Rating on Class C Notes
TITAN JAPAN: Moody's Cuts Rating on Class C Notes to 'Caa3'
N E W Z E A L A N D
NATIONWIDE INSURANCE: S&P Affirms 'B' Counterparty Credit Rating
WINDFLOW TECHNOLOGY: Sells Spare Parts; Set Up Maintenance Unit
ZION WILDLIFE: Goes Into Liquidation
S I N G A P O R E
ESENCO PTE: Creditors Get 7.25626% Recovery on Claims
MIRAGE MOTOR: Court to Hear Wind-Up Petition on Sept. 2
ORIENTAL GLOBAL: Court to Hear Wind-Up Petition on Sept. 2
PROCENTEC PTE: Creditors Get 100% Recovery on Claims
PROGEN ENGINEERING: Creditors Get 100% Recovery on Claims
T A I W A N
S-TECH CORP: Fitch Raises National Long-Term Rating to CCC+(twn)
TACHAN SECURITIES: Fitch Affirms Issue Default Rating at 'BB'
X X X X X X X X
* Squire Sanders Expands Asia Pacific Presence
* BOND PRICING: For the Week Aug. 15 to Aug. 19, 2011
- - - - -
=================
A U S T R A L I A
=================
BLUESCOPE STEEL: Closes 2 Production Facilities; Axes 1,000 Jobs
----------------------------------------------------------------
The Sydney Morning Herald reports that BlueScope Steel Ltd will
close two of its production facilities and cut 1,000 jobs as part
of a restructuring effort aimed at returning the firm to
profitability.
According to the report, the company will shut down its number
six blast furnace at Port Kembla, in the Illawarra region, south
of Sydney, and close its Western Port hot strip mill in southern
Victoria. The blast furnace closure will result in 800 job
losses, while 200 jobs will be cut at Western Port, SMH relates.
BlueScope said contractors and suppliers will also be affected by
the closures, the report says.
The company reported AUD1.054 billion net loss for the year to
June 30, which compares to a AUD126 million profit in the
previous corresponding period, SMH discloses.
"We are experiencing significant economic challenges and
structural change in the global steel industry," SMH quotes
Bluescope Steel Chairman Graham Kraehe as saying.
Mr. Kraehe, as cited by SMH, said the closure of the plants will
better align BlueScope's production with demand from Australia,
and the company will no longer export its products.
"The restructure announced [] will produce a more viable and
sustainable Australian steel business and allow us to focus
clearly on domestic markets and international growth
opportunities," SMH quotes Mr. Kraehe as saying.
Managing Director Paul O'Malley said the changes would deliver a
material improvement in earnings and cashflow, reduce export
losses, and reduce earnings volatility.
"It's the right decision for the long-term viability of our
business," the report quotes Mr. O'Malley as saying. "The
company has the support of its lenders to undertake the
restructure."
"We will now enter a consultation process with our employees and
affected stakeholders, including customers, unions, contractors,
suppliers, governments and local communities."
Mr. O'Malley, as cited by SMH, said the high Australian dollar,
low steel prices, and high raw material costs were being
compounded by low domestic steel demand.
SMH notes that BlueScope's underlying net loss, which takes out
the impact of asset writedowns, was AUD118 million, compared with
an underlying profit of AUD113 million in the previous
corresponding period.
No final dividend will be paid, SMH adds.
Based in Australia, BlueScope Steel Limited (ASX:BSL) -- engages
in the manufacture and distribution of flat steel products;
manufacture and distribution of metallic coated and painted steel
products; manufacture and distribution of steel building
products, and design and manufacture of pre-engineered steel
buildings and building solutions. It specializes in the
production of flat steel products, including slab, hot rolled
coil, cold rolled coil, plate and value-added metallic coated and
painted steel solutions.
COLORADO GROUP: Creditors Agree on Plan to Revive Business
----------------------------------------------------------
James Thomson at SmartCompany reports that creditors in Colorado
Group have agreed to a plan that will see the group's business
resurrected in trimmed-down format.
Under a deal orchestrated by Ferrier Hodgson, the creditors of
the group will swap their debts for equity stakes in the new
business, SmartCompany says.
According to the report, Colorado Group, which owns the Colorado
brand, Jag, and shoe brands Mathers and Williams, will now have a
network of 280 stores, after receiver James Stewart shut 124
stores with the loss of more than 1,024 jobs.
SmartCompany relates that Mr. Steward said the business is
forecasted to generate a net profit of AUD20 million for the
2011-12 financial year.
The company, says SmartCompany, will also change its name to
reflect the fact that that loss-making Colorado retail chain has
now been shut down.
In the end, creditors had little choice but to accept a debt-to-
equity swap -- Mr. Stewart was unable to find a serious bidder
for the group with or without the Colorado chain, SmartCompany
notes.
About Colorado Group
Colorado Group -- http://www.coloradogroup.com.au/-- is a
leading footwear and apparel retailer and wholesaler with more
than 430 stores in Australia and New Zealand operating under the
divisions of Colorado, Mathers, Williams, diana ferrari, Jag, and
Pairs. The group employs approximately 3,800 people.
As reported in the Troubled Company Reporter-Asia Pacific on
March 31, 2011, Colorado Group Limited was placed in receivership
on March 30, 2011, following the board's appointment of Deloitte
as voluntary administrators. Colorado Group incorporates five
well-known brands -- JAG, Diana Ferrari, Colorado, Mathers,
Williams -- with 434 stores across Australia and New Zealand.
Ferrier Hodgson partners James Stewart, Brendan Richards and Will
Colwell were appointed receivers and managers over the group.
The appointment was made by the syndicate of secured creditors
owed AUD400 million.
COVERT DIRECT: Creditors Opt to Wind Up Clothing Brands
-------------------------------------------------------
SmartCompany reports that Covert Direct Pty Ltd and Rook Pty Ltd,
the companies that owned well-known Melbourne clothing brand
Bauhaus, AAH!!, Shark, One Tru Luv, and Cloak & Dagger were
placed in the hands of liquidators.
Keith Crawford and Matthew Caddy of McGrathNicol were appointed
as liquidators on August 17 after creditors moved to have the
company wound up, SmartCompany says.
Mr. Crawford told SmartCompany that the business has effectively
ceased trading for the current time.
"There's a residue to stock that we are hoping to deliver to
customers to meet pre-existing orders but as this stage, I am not
taking production orders," SmartCompany quotes Mr. Crawford as
saying. "It is still too early to say who may emerge as a buyer
of the businesses," he said.
According to SmartCompany, Mr. Crawford said that while he is yet
to start investigating the specific circumstances around the
collapse of Covert Direct and Rook, he is "sure the trading
conditions haven't helped."
"They're [the firm] in the supply chain and you can't insulate
yourself from the environment," Mr. Crawford added.
SmartCompany notes that the brands are the latest in a long line
of fashion-related businesses to have collapsed since the start
of the year, including retail chains Brown Sugar and Colorado
Group, women's fashion label Bettina Liano, Sydney-based retailer
Fashion Factory Clearance, and women's clothing manufacturer,
designer and retailer Covers Design.
Covert Direct Pty Ltd and Rook Pty Ltd own a number of youth and
street wear brands comprising of Bauhau, AHH!! Shark, ONE TRU LUV
and Cloak and Dagger.
GORDON RAMSAY: Puts Maze Melbourne Restaurants In Liquidation
-------------------------------------------------------------
Rebecca Davies at Digital Spy reports that Gordon Ramsay, owner
of London-based Gordon Ramsay Holdings Ltd., has closed down his
Australian restaurants.
maze and maze Grill, which the Hell's Kitchen chef opened in
Melbourne's Crown Metropol Hotel last year, reportedly made more
than US$14 million (GBP9 million) in 2009 but were placed in the
hands of liquidators HLB Mann Judd on August 21.
Ramsay's business Gordon Ramsay Holdings Ltd has been
experiencing financial problems since his father-in-law
Christopher Hutcheson was sacked as CEO last October, Digital Spy
relates, citing the Herald Sun.
"Since the recent change in management at GRH, we have been
conducting business reviews of all of our group operations,"
Digital Spy quotes Mr. Ramsay's spokesperson as saying.
"The decision has been taken to put maze and maze Grill,
Melbourne, into liquidation as we have concluded that the
business is not sustainable. Unfortunately, this course has
become the only option as it is essential to focus on the health
of the wider group," the spokesman added.
Mr. Ramsay was scheduled to fly to Australia to visit the
eateries later this year, but has now cancelled his trip. His
popularity in the country is believed to have dwindled since he
verbally attacked television journalist Tracy Grimshaw in 2009.
Gordon Ramsay Holdings -- http://www.gordonramsay.com/--
operates restaurants in the United Kingdom. Its menu includes
sweetbreads and mushrooms, sauces, cheeses, ice creams, and wine.
The company was founded in 1998 and is based in London.
JUBILEE CENTRAL: Owners Confirm Business Goes Into Administration
-----------------------------------------------------------------
Whitsunday Times reports that owners of Jubilee Central IGA
confirmed the business had gone into administration.
Owners Kathy and Alan Malakou bought the business from Paul and
Mick Faust in 2008, according to Whitsunday Times.
Whitsunday Times notes that Mr. Malakou said that they had been
trying to sell the business for some time but had not been
successful. The report relates Mr. Malakou said the business had
suffered from larger competitive supermarkets and couldn't
compete.
However, it is believed the receivers will trade the store out
and new stock is expected to arrive this week, Whitsunday Times
discloses.
RELIANCE RAIL: Moody's Reviews 'B3' Sr. Debt Rating for Downgrade
-----------------------------------------------------------------
Moody's Investors Service has placed Reliance Rail Finance Pty
Ltd's B3 senior debt rating and Caa2 subordinated debt rating on
review for possible downgrade. The rating action follows
announcements yesterday from Reliance Rail Group in relation to a
reservation of rights notice received by Reliance Rail from its
financial guarantors in respect of alleged events of default
under its debt financing documents.
"The rating action reflects Moody's concern that the reservation
letter introduces additional uncertainty to Reliance Rail's
ability to secure the required funding in February 2012 to
complete the Waratah train project", says Spencer Ng, a Moody's
analyst/AVP.
"The review will focus on the impact of the 'reservation of
rights' notice on the ability of Reliance Rail to reach a
solution for its potential funding gap for the Waratah project,"
Mr. Ng adds.
On August 17, 2011, Reliance Rail announced that its
intercreditor agent had received a reservation of rights notice
from its financial guarantors, Syncora Guarantee Inc. (rated Ca,
developing outlook) and FGIC UK Limited (unrated), claiming
events of default under RRF's debt financing documents. Reliance
stated that -- in its view -- there is no event of default under
the documents.
At the same time, the B3 rating continues to reflect Moody's
concerns with a potential funding shortfall for the Waratah
project by February 2012 due to its reliance on a wrapped bank
facility (to complete the delivery phase of the project) that
includes outs to funding should the bank facilities' financial
guarantors be insolvent.
"Whilst only a limited amount of detail had been made publicly
available regarding the actual events of default being referenced
in the notice, the letter in itself had added to the
uncertainties surrounding the likelihood of a solution being
reached to address the funding issue," says Mr. Ng.
The rating also considers the risk that the bank facility, and
potentially other debt, could be re-priced at a level that will
substantially pressure Reliance Rail's financial profile.
The rating will likely be downgraded in the event of wrapper
insolvency, if there is no satisfactory resolution in relation to
availability of the AUD357 million facility. Furthermore, the
ratings may also be downgraded if there is evidence of further
delays in the delivery phase.
On the other hand, the ratings could be stabilized if the
potential funding challenges are resolved and delivery of
additional train sets remain substantially in line with the
current timetable.
The principal methodologies used in this rating were Construction
Risk in Privately-Financed Public Infrastructure (PFI/PPP/P3)
Projects published in December 2007, and Operating Risk in
Privately-Financed Public Infrastructure (PFI/PPP/P3) Projects
published in December 2007.
Reliance Rail Finance Pty Ltd is the funding vehicle for the
Reliance Rail Group. Reliance Rail Group was the successful
consortium appointed by Railcorp in 2006 to deliver the NSW
Rolling Stock public private (PPP) project. Reliance Rail is in
the process of manufacturing 78 eight-car "Waratah" trains for
the Sydney suburban rail network and has completed an associated
maintenance facility. Reliance Rail will also maintain the trains
and the maintenance facility from completion until 2043.
TRLIN BUILDERS: In Administration, Owes More Than AUD11 Million
---------------------------------------------------------------
Russell Quinn at The Sunday Times reports that up to 20 people
have lost their jobs after Trlin Builders & Co shut its doors
last month owing millions of dollars to creditors and leaving
about 25 unfinished homes across Perth.
Professional services firm RSM Bird Cameron was last month
appointed voluntary administrator by Midvale-based Trlin Builders
which sought help with "cash-flow concerns in relation to the
general property development market."
RSM Bird Cameron insolvency partner Greg Dudley told The Sunday
Times that there were more than 50 people at the first creditors'
meeting held late last month.
"We would expect creditors to be owed somewhere over the
AUD11 million-plus mark," Mr. Dudley told The Sunday Times.
"That includes a secured creditor but, obviously, there are
significant assets to match up to the (unsecured) creditors,
also."
"Because this company has a number of properties, we've had to
engage valuers and those reports take a while to work out what
we're going to do moving forward with the company," Mr. Dudley
added.
The Sunday Times relates that Mr. Dudley has been granted a court
extension through the end of October to collate all the complex
asset valuations of properties scattered from South Perth to
Bullsbrook to Churchlands, and deliver the major administrator's
report.
Mr. Dudley, according to The Sunday Times, suggested three
possible outcomes for the former multimillion-dollar operation:
The company could go into liquidation, it could enter into a deed
of company arrangement (if one is proposed and recommended by
administrators), or it could be handed back to the director which
he said was "pretty unlikely."
Less than two weeks ago, the founder of the company, Tony Trlin,
died in a car accident on Great Northern Highway in Bullsbrook,
east of Perth, which had been the company's main region for
construction over the past 20 years, The Sunday Times reports.
Trlin Builders & Co -- http://www.trlin.com.au/-- designs and
builds custom-built homes in Perth, Western Australia.
=========
C H I N A
=========
CHINA RUITAI: Reports US$1.3 Million Second Quarter Net Income
--------------------------------------------------------------
China Ruitai International Holdings Co., Ltd., filed with the
U.S. Securities and Exchange Commission its quarterly report on
Form 10-Q, reporting net income of US$1.37 million on
US$11.72 million of sales for the three months ended June 30,
2011, compared with net income of US$1.41 million on
US$11.17 million of sales for the same period a year ago.
The Company also reported net income of US$2.10 million on
US$21.31 million of sales for the six months ended June 30, 2011,
compared with net income of US$3.35 million on US$21.41 million
of sales for the same period during the prior year.
The Company's balance sheet at June 30, 2011, showed
US$129.61 million in total assets, US$96.87 million in total
liabilities, and US$32.74 million in total equity.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/EOFoGI
About China Ruitai
Shandong, China-based China Ruitai International Holdings Co.,
Ltd., was organized under the laws of the State of Delaware on
Nov. 15, 1955, under the name "Inland Mineral Resources Corp."
Currently, the Company, through its wholly-owned subsidiary,
Pacific Capital Group Co., Ltd., a corporation incorporated under
the laws of the Republic of Vanuatu, and its majority-owned
subsidiary, TaiAn RuiTai Cellulose Co., Ltd., a Chinese limited
liability company, is engaged in the production, sales, and
exportation of deeply processed chemicals, with a primary focus
on non-ionic cellulose ether products in the People's Republic of
China as well as to the United States, Europe, Japan, India and
South Korea.
As reported by the TCR on April 8, 2011, Bernstein & Pinchuk LLP,
in New York, after auditing the Company's financial statements
for the year ended Dec. 31, 2010, expressed substantial doubt
about China Ruitai's ability to continue as a going concern. The
independent auditors noted that the Company has negative working
capital.
SINOTECH ENERGY: Investor Sues Over Securities Violations
---------------------------------------------------------
Bloomberg News reports that SinoTech Energy Ltd. was sued in the
U.S. by an investor claiming securities violations after the
company's shares plummeted.
Bloomberg, citing a complaint filed in Manhattan federal court on
August 19, relates that investor Bhushan Athale alleges that the
financial reports of Beijing-based SinoTech were "inaccurate
because the nature, size and scope of the company's business was
materially exaggerated." Mr. Athale is seeking to sue on behalf
of buyers of the company's American depositary shares since its
November initial public offering.
According to Bloomberg, SinoTech plunged 42% to $2.35 on the
Nasdaq Stock Market on Aug. 16, 2011, after Alfredlittle.com
published a short-seller's note saying the company's largest
customers were probably "nothing more than empty shells" and that
it's worth less than 63 cents a share. SinoTech called the note
"inaccurate and defamatory," Bloomberg relates.
Trading has been halted in the shares and the company said in a
statement Friday that it intends to "cooperate fully" with Nasdaq
to address the stock market's concerns. The trading halt has
rendered the ADS "essentially worthless," Mr. Athale said in the
complaint.
Bloomberg notes that the company said in an Aug. 17 statement
that it wasn't aware of material omissions in its financial
statements and that it had appointed an independent committee to
investigate.
"We are outraged by this blatantly self-interested, mercenary
attempt to profiteer at the expense of SinoTech and its
shareholders," Bloomberg quotes Chief Executive Officer Xin
Guoqiang as saying in the Aug. 17 statement.
Based in Beijing, China, SinoTech Energy Limited (NASDAQ:CTE) --
http://ir.sinotechenergy.com.-- is a holding company. The
Company conducts its operations through Superport Limited, which
became its wholly owned subsidiary on Oct. 12, 2010. It is a
provider of enhanced oil recovery (EOR) services in the People's
Republic of China.
================
H O N G K O N G
================
ACTIVE-7 OPTICAL: Court to Hear Wind-Up Petition on Oct. 12
-----------------------------------------------------------
A petition to wind up the operations of Active-7 Optical &
Electrical Holding (HK) Limited will be heard before the
High Court of Hong Kong on Oct. 12, 2011, at 9:30 a.m.
Power Solutions Asia Pacific Limited filed the petition against
the company on Aug. 5, 2011.
The Petitioner's solicitors are:
Wilkinson & Grist
6th Floor, Prince's Building
10 Chater Road, Central
Hong Kong
ASTON GROUP: Wardell and Ip Step Down as Liquidators
----------------------------------------------------
James Wardell and Jackson Ip stepped down as liquidators of Aston
Group Limited on Aug. 8, 2011.
BLAZE CONCEPT: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on Aug. 10, 2011, to
wind up the operations of Blaze Concept Limited.
The Official Receiver is Teresa S W Wong.
COMPACT CONSTRUCTION: Contributories, Creditors to Meet Sept. 2
---------------------------------------------------------------
Contributories and creditors of Compact Construction Engineering
Company Limited will hold their first meetings on Sept. 2, 2011,
at 2:30 p.m., and 3:30 p.m., respectively, at Messrs. William
K.W. Leung & Co., Unit 1, 11/F, Beautiful Group Tower, at 77
Connaught Road Central, in Hong Kong.
At the meeting, Leung King Wai William, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
DAILY RANK: Court to Hear Wind-Up Petition on Oct. 12
-----------------------------------------------------
A petition to wind up the operations of Daily Rank Electronics
Company Limited will be heard before the High Court of
Hong Kong on Oct. 12, 2011, at 9:30 a.m.
Bull Will Company Limited filed the petition against the company
on July 27, 2011.
The Petitioner's solicitors are:
Messrs. Ng & Shum
Unit D2, 13th Floor
United Centre
95 Queensway
Hong Kong
ETONE TELECOM: Court to Hear Wind-Up Petition on Sept. 7
--------------------------------------------------------
A petition to wind up the operations of Etone Telecom Company
Limited will be heard before the High Court of Hong Kong on
Sept. 7, 2011, at 9:30 a.m.
The Government of the Hong Kong Special Administrative Region
filed the petition against the company on June 28, 2011.
FOOT HOUSE: Court to Hear Wind-Up Petition on Oct. 12
-----------------------------------------------------
A petition to wind up the operations of Foot House Company
Limited will be heard before the High Court of Hong Kong on
Oct. 12, 2011, at 9:30 a.m.
GOLDEN PHASE: Court to Hear Wind-Up Petition on Oct. 12
-------------------------------------------------------
A petition to wind up the operations of Golden Phase
International Electronics Limited will be heard before the High
Court of Hong Kong on Oct. 12, 2011, at 9:30 a.m.
Carlson Industrial (H.K.) Limited filed the petition against the
company on Aug. 9, 2011.
The Petitioner's solicitors are:
Kong Sze Man Simone
Joint and Several Liquidator of
Carlson Industrial (H.K.) Limited
Room 511, 5th Floor
Tower 1, Silvercord
30 Canton Road
Tsimshatsui, Kowloon
Hong Kong
ROAD KING: S&P Puts 'BB-' Corp. Credit Rating on Watch Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' long-term
corporate credit rating on Road King Infrastructure Ltd. (Road
King) and the 'BB-' issue rating on the company's notes on
CreditWatch with negative implications. "We also placed our
'cnBB+' Greater China Scale ratings on the company and its senior
unsecured notes on CreditWatch with negative implications," S&P
said.
"We placed the ratings on Hong Kong-based Road King on
CreditWatch with negative implications because the company's
profit margin and contracted sales in the first half of 2011 were
weaker than we expected," said Standard & Poor's credit analyst
Frank Lu. "We believe Road King's financial strength is likely to
remain weak in the next one year due to the deepening property
market correction in China and the company's somewhat weak
execution of its projects and sales."
"We also expect the company's leverage to remain high in 2011 and
may further increase due to weak sales and margins. Road King's
EBITDA margin dropped to 11.5% in the first half of 2011 from
20.4% for the full year of 2010. Its half-year contracted sales
of Chinese renminbi (RMB) 2.4 billion were only 34% of its full-
year target," S&P related.
"Given Road King's weak sales and the tight capital markets for
developers, the company could face refinancing pressure in 2012.
Its $150 million senior unsecured notes will come due in May
2012," Mr. Lu said.
"Nevertheless, we expect Road King's stable cash flow from toll
roads and the company's disciplined land acquisition strategy to
support its liquidity position. We don't expect the company's
toll road acquired this year to contribute much cash inflow in
2012 due to the road's ramping-up period and finance cost," S&P
related.
Standard & Poor's aims to resolve the CreditWatch action within
the next three months after conducting a review on the company's
business and financial risk profiles. "We may lower the rating on
Road King by one notch if we believe the company's property sales
visibility and profit margin prospects for the next 12 months are
weaker than we expected, or its leverage may remain higher than
expected for a prolonged period. We may also lower the rating if
Road King's liquidity deteriorates or refinancing risk
heightens," S&P stated.
TREASURE RESTAURANT: Final Meetings Set for Sept. 20 to 21
----------------------------------------------------------
Members and creditors of Treasure Restaurant Company Limited will
hold their final meetings on Sept. 20 and 21, 2011, at 10:30
a.m., and 10:10 a.m., respectively at 25th Floor, Wing On Centre,
at 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
TREASURE SEA: Final Meetings Set for Sept. 20 to 21
---------------------------------------------------
Members and creditors of Treasure Sea Food Restaurant Limited
will hold their final meetings on Sept. 20, 2011 and Sept. 21,
2011, at 11:50 a.m., and 11:40 a.m., respectively at 25th Floor,
Wing On Centre, at 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
ZFIC LIMITED: Creditors' Proofs of Debt Due Sept. 19
----------------------------------------------------
Creditors of Zfic Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
Sept. 19, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Aug. 12, 2011.
The company's liquidator is:
Lam King Lin
Room 2002, 20/F
Multifield Centre
426 Shanghai Street
Kowloon, Hong Kong
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I N D I A
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ALLIANCE ONE: CRISIL Cuts Rating on INR150MM Loan to 'CRISIL BB+'
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CRISIL has downgraded its ratings on the bank facilities of
Alliance One Industries India Pvt Ltd to 'CRISIL
BB+/Stable/CRISIL A4+' from 'CRISIL BBB-/Stable/CRISIL A3'.
Facilities Ratings
---------- -------
INR150.0 Million Rupee Term Loan CRISIL BB+/Stable
(Downgraded from
'CRISIL BBB-/Stable')
INR20.0 Million Proposed LT CRISIL BB+/Stable
Bank Loan Facility (Downgraded from
'CRISIL BBB-/Stable')
INR1390.0 Mil. Packing Credit CRISIL A4+
(Downgraded from
'CRISIL A3')
The downgrade reflects expected deterioration in Alliance India's
liquidity and debt protection metrics on account of an
unanticipated dividend of INR187 million to be paid by the
company in 2011-12 (refers to financial year, April 1 to
March 31). CRISIL believes that the dividend outgo will increase
Alliance India's dependence on bank finance for meeting its
working capital requirement. The downgrade also factors in
expected pressure on the company's business performance over the
medium term due to the oversupply situation in the international
tobacco markets. Alliance India derives over 70% of its revenues
from Alliance One International (AOI; 49% stake in Alliance India
is held by the AOI group) and the operating performance of AOI is
expected to weaken due to the oversupply in the international
markets.
The ratings reflect the benefits that Alliance India derives from
its strong relationship with its joint venture (JV) partner, AOI
group, especially from the AOI group's tobacco-marketing network
and its moderate financial risk profile. These rating strengths
are partially offset by Alliance India's large working capital
requirements, and susceptibility to volatility in the value of
the Indian rupee and to adverse changes in regulations.
Outlook: Stable
CRISIL believes that Alliance India will maintain, and continue
to benefit from, its strong relationship with AOI. The outlook
may be revised to 'Positive' if Alliance India achieves more-
than-expected revenues while maintaining its profitability,
leading to increase in cash accruals and improvement in
liquidity. Conversely, the outlook may be revised to 'Negative'
if the company's liquidity weakens further, most likely because
of more-than-expected decline in revenues and profitability, or
if the company undertakes a large, debt-funded capital
expenditure programme, thereby weakening its capital structure.
About Alliance One
Incorporated in 1994, Alliance India is a 51:49 JV between Mr.
Chebrolu Narendranath, and Standard Commercial Tobacco Co (UK)
Ltd (SCTC; a subsidiary of Alliance One International Inc, USA).
Alliance India is engaged in processing and exporting tobacco
leaves. It primarily exports unmanufactured tobacco leaves
through its JV partner, AOI. Alliance India has a processing
unit, with capacity of 85,000 tonnes per annum in Guntur (Andhra
Pradesh).
Alliance India reported, on provisional basis, a profit after tax
(PAT) of INR207.9 million on revenues of INR2.3 billion for
2010-11; it reported a PAT of INR175.6 million on revenues of
INR1.8 billion for 2009-10.
CINE INDIA: CRISIL Rates INR100 Million LT Loan at 'CRISIL B'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the proposed
long-term bank facility of Cine India International.
Facilities Ratings
---------- -------
INR100 Million Proposed LT CRISIL B/Stable (Assigned)
Bank Loan Facility
The rating reflects Cine's weak financial risk profile, marked by
high gearing and moderate debt protection metrics, high and
increasing debtors that limit financial flexibility, and small
scale of operations in a fragmented industry along with high
obsolescence risk of equipment. These rating weaknesses are
partially offset by the extensive experience of Cine's promoters
in the media and entertainment industry.
Outlook: Stable
CRISIL believes that Cine will maintain its business risk profile
based on its promoter's experience in the media and entertainment
industry. The firm's financial risk profile is expected to remain
constrained due to working-capital-intensive operations. The
outlook may be revised to 'Positive' in case the firm's top-line
growth and profitability are larger-than-expected and better than
expected working capital management, leading to significant
improvement in its financial risk profile. Conversely, the
outlook may be revised to 'Negative', if the firm's order book
shrinks, or in case its financial risk profile deteriorates owing
to stretched working capital or large, additional, debt-funded
capital expenditure (capex).
About Cine India
Cine, a proprietorship firm, was set up in 1974 by Mr. Amarjeet
Singh Sachdeva. It is engaged in leasing of equipments (digital
and beta cam equipment) for indoor and outdoor shooting. The firm
is also engaged in the production of documentaries, serials,
telefilms and films. In 2010-11 (refers to financial year, April
1 to March 31), the firm derived around 95% of its revenues from
leasing of equipment and the balance from documentaries. Cine is
recognised as a Grade-A producer with Directorate of Audio Visual
Publicity, Directorate of Adult Education, Ministry of Family
Welfare, Department of Women and Child development, FDDI, ITPO.
Cine is expected to report a book profit of INR 5.4 million on
operating income of INR127.2 million for 2010-11 against a book
profit of INR19.5 million on operating income of INR138.0 million
for 2009-10.
COSMIC FERRO: Fitch Affirms 'BB+(ind)' National Long-Term Rating
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Fitch Ratings has affirmed India-based Cosmic Ferro Alloys
Limited's National Long-Term rating at 'Fitch BB+(ind)'. The
Outlook is Stable.
The affirmations reflect CFAL's consistent performance over the
financial year ended March 2011 (FY11) and FY10. Its EBITDA
margins improved to over 7.5% in FY11 from 6.1% in FY10, while
its net financial leverage (net debt/EBITDA) was comfortable at
2.3x (FY10: 1.9x). Fitch notes that the company has no
significant debt-funded capex plans over the short-to-medium
term, and expects the financial leverage to be sustained at
levels below 3x.
The ratings are however constrained by delays in procuring
adequate power supply from grid. As a result, CFAL has been
unable to fully utilize its installed capacity. The ratings are
also constrained by the company's exposure to raw material price
volatility due to an absence of captive mines. Further, Fitch
notes that the current rising interest rate regime may adversely
impact CFAL's profitability and hence significantly increase its
financial leverage.
Positive rating guidelines include adequate power allocation to
the company so that it could run all its five furnaces. Negative
rating guidelines any pressure on its EBITDA margins and/or any
significant debt- funded capex resulting in its net debt/EBITDA
exceeding 5x.
As per provisional figures of FY11, CFAL's revenues were
INR2,734.5 million (FY10: INR2,746.3 million). Its total debt
increased to INR549.1 million at FYE11 from INR390.6 million at
FYE10 due to the debt-funded capex to install its fifth furnace.
It was concluded in FY11, increasing its installed capacity to
90,900 metric tonne per annum (MTPA) from 75,900 MTPA.
CFAL's bank facilities have been affirmed as follows:
-- INR217.1m outstanding long-term debt (increased from
INR165.9m): 'Fitch BB+(ind)';
-- INR380m cash credit limit (increased from INR290m): 'Fitch
BB+(ind)'; and
-- INR1,170m non-fund based facilities (increased from
INR810m): 'Fitch A4+(ind)'.
COSMO GRANITES: CRISIL Assigns 'CRISIL BB-' Rating to INR5MM Loan
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CRISIL has assigned its 'CRISIL BB-/Stable' rating to the bank
loan facilities of Cosmo Granites Private Limited.
Facilities Ratings
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INR93.5 Million Cash Credit CRISIL BB-/Stable (Assigned)
INR5 Million Proposed Long-Term CRISIL BB-/Stable (Assigned)
Bank Loan Facility
The ratings reflect CGPL's promoters' extensive experience in
trading in flooring materials and its diverse product base. These
rating strengths are partially offset by CGPL's weak financial
risk profile, marked by small net worth, weak debt protection
metrics, and high ratio of total outside liabilities to tangible
net worth, its large working capital requirements, and its small
scale of operations.
Outlook: Stable
CRISIL believes that Cosmo Granites Pvt Ltd will continue to
benefit over the medium term from its promoters' experience in
trading in and distribution of flooring materials. The outlook
may be revised to 'Positive' if CGPL's capital structure
improves, and its revenues and profitability increase
significantly, thereby improving its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if CGPL's
profitability and sales decline sharply, or if the company
undertakes a significantly debt-funded capex programme, resulting
in deterioration in its capital structure over the medium term.
About Cosmo Granites
Incorporated in 1992, CGPL is engaged in trading in and
distribution of flooring materials such as marble, granite, and
wood. The promoter-directors of the company, Mr. Sarath Kumar,
Mr. D Venkaatesh, and Mr. D N Choudery, have an experience of
around two decades in trading in flooring materials: granite,
marble, and wood. The company provides diverse flooring solutions
across granite, marble, wood, along with its allied services for
window fashioning and bathroom solutions under a single roof.
CGPL holds a stockyard of 240,000 square feet for flooring
solutions in India. The company owns showrooms-cum-stockyards in
Chennai and Hyderabad
CGPL profit after tax (PAT) and net sales for 2010-11 (refers to
financial year, April 1 to March 31) are estimated at INR13
million and INR432 million respectively. CGPL reported a PAT of
INR10 million on net sales of INR334 million for 2009-10, as
against a PAT of INR7 million on net sales of INR304 million for
2008-09.
ESCORT LIMITED: Fitch Migrates Rating on INR1.6BB Loan to BB(ind)
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Fitch Ratings has migrated India-based Escorts Limited's
'BB(ind)' National Long-Term rating to the "Non-Monitored"
category. This rating will now appear as 'Fitch BB(ind)nm' on
the agency's website. Simultaneously, the agency has classified
Escorts' following bank loan ratings as "Non-Monitored":
-- INR1,639.4m term loans: migrated to 'Fitch BB(ind)nm' from
'BB(ind)';
-- INR2,045m fund-based working capital limits: migrated to
'Fitch BB(ind)nm'/'Fitch A4+(ind)nm' from
'BB(ind)'/'F4(ind)'; and
-- INR1,085m non-fund based working capital limit: migrated to
'Fitch BB(ind)nm'/'Fitch A4+(ind)nm' from
'BB(ind)'/'F4(ind)'.
The ratings have been migrated to the "Non-Monitored" category
due to lack of adequate information and Fitch will no longer
provide ratings or analytical coverage of Escorts. The ratings
will remain in the "Non-Monitored" category for a period of six
months and be withdrawn at the end of that period. However, in
the event the issuer starts furnishing information during this
six-month period, the ratings could be re-activated and will be
communicated through a "Rating Action Commentary".
GANGA ACROWOOLS: CRISIL Ups Rating on INR975MM Loan to CRISIL BB-
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CRISIL has upgraded its ratings on the cash credit, term loan,
and letter of credit facilities of Ganga Acrowools Ltd to 'CRISIL
BB-/Stable/CRISIL A4+' from 'CRISIL B+/Stable/CRISIL A4', and has
assigned its 'CRISIL BB-/Stable' rating to GAW's standby line of
credit facility.
Facilities Ratings
---------- -------
INR280.0 Million Cash Credit CRISIL BB-/Stable (Upgraded
(Enhanced from INR190 Million) from 'CRISIL B+/Stable')
INR975 Million Term Loan CRISIL BB-/Stable (Upgraded
(Enhanced from INR245.6 Million) from 'CRISIL B+/Stable')
INR34 Mil. Standby Line of Credit CRISIL BB-/Stable
(Assigned)
INR140.0 Million Letter of Credit CRISIL A4+ (Upgraded
(Enhanced from INR90 Million) from 'CRISIL A4')
The upgrade reflects improvement in GAW's business risk profile,
driven by sustained increase in its scale of its operations in
the wake of a buoyant demand scenario, and stable profitability.
The company's net sales are estimated at INR1.4 billion in 2010-
11 (refers to financial year, April 1 to March 31), a year-on-
year increase of close to 40%. The healthy growth in sales was
supported by the buoyant demand scenario for acrylic yarns in
India. Revenue contribution from the domestic market increased to
56.2% in 2010-11 from 36.7% three years ago. GAW maintained its
operating margin at close to 13% over the past three years,
supported by the superior quality of its products and its latest
manufacturing facilities. The rating upgrade also factors in
CRISIL's belief that GAW's scale of operations will continue to
increase over the medium term on the back of ongoing expansion of
its manufacturing capacities.
The ratings reflect GAW's improving business risk profile,
supported by its strong market position in the value-added
acrylic yarns segment. This rating strength is partially offset
by GAW's below-average financial risk profile, marked by high
gearing, small net worth, and weak debt protection metrics,
exposure to risks related to implementation of its ongoing
capacity expansion project, and susceptibility to volatility in
raw material prices and in the value of the Indian rupee.
Outlook: Stable
CRISIL believes that GAW's gearing will remain high because of
its large, ongoing, debt-funded capital expenditure (capex)
programme and large working capital borrowings. The outlook may
be revised to 'Positive' if GAW's capital structure improves
through infusion of equity, or if improvement in operating margin
leads to larger-than-expected cash accruals. Conversely, the
outlook may be revised to 'Negative' if GAW's capital structure
weakens considerably on account of large working capital
borrowings or larger-than-expected debt-funded capex.
About Ganga Acrowools
GAW was set up by Dr. Ravinder Verma in 1995. The company
manufactures worsted acrylic yarn and other blended yarns. The
worsted acrylic yarn include fine and medium-count yarn used in
machine knitting, hosiery, hand knitting and weaving; and coarse-
count yarn, used in carpet manufacturing and hand knitting. The
company manufactures grey and dyed acrylic yarn.
GAW's manufacturing unit in Ludhiana (Punjab) has capacity to
manufacture 16 tonnes of yarn per day. The company has 15,682
spindles (around 13,000 for fine and medium yarn and 2682 for
coarse yarn). GAW has an in-house dyeing division to cater to the
value-added dyed yarn segment. The company also has a biological
treatment unit to treat waste water from its dyeing unit; the
treated water is discharged in a company-owned plantation area of
around two acres.
GAW reported a profit after tax (PAT) of INR62 million on net
sales of INR1.4 billion for 2010-11, against a PAT of INR52
million on net sales of INR992 million for 2009-10.
GAUTAM STAINLESS: CRISIL Rates INR50MM Term Loan at 'CRISIL B'
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CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Gautam Stainless Pvt Ltd.
Facilities Ratings
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INR50 Million Term Loan CRISIL B/Stable (Assigned)
INR25 Million Cash Credit CRISIL B/Stable (Assigned)
INR1.6 Mill. Proposed Long-Term CRISIL B/Stable (Assigned)
Bank Loan Facility
INR5 Million Letter of Credit CRISIL A4 (Assigned)
The ratings reflect GSPL's weak financial risk profile, marked by
a high gearing and small net worth, constrained financial
flexibility due to small scale of operations and large working
capital requirements and vulnerability to volatility in raw
material prices and foreign exchange rates. These rating
weaknesses are partially offset by the extensive experience of
GSPL's promoters in manufacturing stainless steel products.
Outlook: Stable
CRISIL believes that GSPL will continue to benefit over the
medium term from its promoters' extensive industry experience and
its improving profitability. The outlook may be revised to
'Positive' if GSPL successfully stabilizes its increased
capacity, thereby registering healthy revenue growth, and if
there is equity infusion by the promoters, leading to an improved
capital structure. Conversely, the outlook may be revised to
'Negative' if volatility in steel prices adversely impacts the
company's operating margin, or if its financial risk profile
deteriorates further because of increased working capital
requirements.
About Gautam Stainless
Based in Vadodara (Gujarat), GSPL was established in 2004 by Mr.
Babulal S Sanghvi and his son, Mr. Mahesh Sanghvi. The company
started commercial operations in September 2005. Prior to
establishing GSPL, the promoters were engaged in a similar line
of business through another entity, Gautam Industries. GSPL
manufactures and exports various stainless steel products, such
as unions, butterfly valves, clamps, and ferrules. The company
mainly caters to industries manufacturing pharmaceuticals and
food products.
GSPL reported a profit after tax (PAT) of INR2.4 million on net
sales of INR42.2 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.8 million on net
sales of INR24.9 million for 2009-10.
GLASTRONIX: CRISIL Places 'CRISIL BB+' Rating on INR100MM Loan
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CRISIL has assigned its 'CRISIL BB+/Stable' rating to the long-
term bank facilities of Glastronix.
Facilities Ratings
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INR100 Million Term Loan CRISIL BB+/Stable (Assigned)
INR60 Million Cash Credit CRISIL BB+/Stable (Assigned)
INR80 Mil. Proposed Term Loan CRISIL BB+/Stable (Assigned)
The rating reflects Glastronix's moderate financial risk profile,
marked by healthy capital structure and debt protection metrics,
and established clientele. These rating strengths are partially
offset by Glastronix's exposure to risks related to modest scale
of operations and susceptibility of its margins to volatility in
raw material prices and foreign exchange rates.
Outlook: Stable
CRISIL believes that Glastronix will continue to benefit over the
medium term from its partners' extensive experience in
manufacturing components of electrical, electronic, and machined
parts and its healthy capital structure. The outlook may be
revised to 'Positive' if Glastronix successfully stabilizes
operations at its new unit and substantially increases its
revenues, while maintaining its profitability and capital
structure. Conversely, the outlook may be revised to 'Negative'
if the firm's financial risk profile deteriorates due to larger-
than-expected debt-funded capital expenditure, sharp decline in
revenues or profitability, or any significant withdrawal of
capital by the partners.
About Glastronix
Set up as a partnership firm in 1972, Glastronix manufactures
components of electrical, electronic, and machined parts and
sheet metal, which are used to manufacture or integrate medical,
telecom, and earth-moving equipment. The firm is promoted by Mr.
T Prathapan and his family members. Glastronix's clientele
include GE Medical Systems India Pvt Ltd, Wipro GE Medical
Systems Pvt Ltd, Phillips Electronics India Ltd (rated 'CRISIL
AA/Stable/CRISIL A1+' by CRISIL), Lucent Technologies Inc, Shyam
Telelink Ltd, ABB Ltd (rated 'CRISIL AAA/Stable/CRISIL A1+' by
CRISIL), and Tyco Electronics Corporation India (P) Ltd.
Glastronix operates from Bengaluru (Karnataka). It has two
manufacturing units in Karnataka.
Glastronix reported a profit after tax (PAT) of INR12.5 million
on net sales of INR276.4 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR30.6 million on
net sales of INR381.1 million for 2008-09. For 2010-11, the
estimated revenues of Glastronix were about 422 million.
GOLD KING: CRISIL Assigns 'CRISIL BB-' Rating to INR25MM LT Loan
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CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Gold King Tex India Private Limited.
Facilities Ratings
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INR25 Million Long-Term Loan CRISIL BB-/Stable (Assigned)
INR50 Million Cash Credit CRISIL BB-/Stable (Assigned)
INR1.8 Mil. Proposed Long-Term CRISIL BB-/Stable (Assigned)
Bank Loan Facility
INR75 Million Letter of Credit CRISIL A4+ (Assigned)
The ratings reflect the extensive experience of the GB Raja
group's promoter in the textile industry. This rating strength is
partially offset by the GB Raja group's below-average financial
risk profile marked by high gearing, and customer concentration
risks in its revenue profile.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of GKTIPL with that of the promoter's
group entities, GB Raja Top Weaving Pvt Ltd, GB Raja Tex Pvt Ltd,
and Anjella Tex Pvt Ltd. All the entities, collectively referred
to as the GB Raja group, are in the same line of business, have
fungible cash flows and are managed by the same promoter.
Moreover, the management of the GB Raja group intends to merge
all the four companies into a single entity over the medium term.
Outlook: Stable
CRISIL believes that the GB Raja group will continue to benefit
over the medium term from its promoter's extensive experience in
the weaving industry. The outlook may be revised to 'Positive' if
the group diversifies its clientele and reports more-than-
expected growth in revenues and profitability. Conversely, the
outlook may be revised to 'Negative' if the GB Raja group fails
to stabilise its operations post expansion activities or if it
undertakes any larger-than-expected debt-funded capital
expenditure programme, leading to significant deterioration in
its financial risk profile and liquidity.
About the Group
The GB Raja group, currently managed by Mr. B. Raajarajan,
derives majority of its revenues from weaving of fabrics for home
textiles. The group caters primarily to the domestic market and
processes around 66,000 metres of fabric per day. It has an
installed capacity of 12,000 metres of fabric per day (110 Suzler
looms), which caters to around 18% of its requirement. The
remaining weaving requirements are outsourced to the nearby
weaving units.
The group proposes to undertake significant capacity additions
over the medium term and intends to add 86 air-jet looms by
March 31, 2012 at a project cost of INR 210 million, to be funded
through term loans of INR 150 million and promoters' funds of
INR60 million. Also, the group is likely to add another 60 Suzler
looms in 2012-13 (refers to financial year, April 1 to March 31)
at an estimated project cost of INR60 million. The group's key
customers, Gujarat Heavy Chemicals Ltd and Pradip Overseas Ltd,
together accounted for around 70% of its revenues in 2010-11.
HI GRADE: CRISIL Cuts Rating on INR14MM LT Loan to 'CRISIL D'
-------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Hi
Grade Shoe to 'CRISIL D/CRISIL D' from 'CRISIL B/Negative/CRISIL
A4'.
Facilities Ratings
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INR14 Million Long-Term Loan CRISIL D (Downgraded from
'CRISIL B/ Negative')
INR15 Million Cash Credit CRISIL D (Downgraded from
'CRISIL B/ Negative')
INR3 Million SME Care Loan CRISIL D (Downgraded from
'CRISIL A4')
INR10 Million Letter of Credit CRISIL D (Downgraded from
'CRISIL A4')
The downgrade reflects instances of delay by HGS in servicing its
debt; the delays have been caused by the firm's weak liquidity.
HGS also has a below-average financial risk profile marked by a
highly leveraged capital structure. Moreover, the firm's working-
capital-intensive operations have resulted in stretched
liquidity. HGS, however, benefits from its established clientele
and its moderate order book.
About Hi Grade Shoe
HGS, a partnership firm based in Vellore (Tamil Nadu), was set up
in 2005 by Mr. K S Sivakumar and his brother Mr. K S Gandhi. The
firm manufactures shoe uppers and whole shoes, and has capacity
to manufacture about 1000 pairs of shoe uppers or 500 pairs of
shoes per day. HGS sells to traders in the domestic market; its
key customers include Worldwide Agencies Company Ltd and Adithya
Exports Ltd who in turn export to footwear manufacturers in
Europe. HGS has a current order book of INR263 million, which is
to be executed by March 31, 2012.
HGS's provisional profit after tax (PAT) is estimated at INR 9.8
million on net sales of INR 315.2 million for 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR5.5
million on net sales of INR131 million for 2009-10.
IND SPHINX: CRISIL Raises Rating on INR188MM Loan to 'CRISIL B+'
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CRISIL has upgraded its ratings on the bank facilities of IND
Sphinx Precision Ltd to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL
D/CRISIL D'.
Facilities Ratings
---------- -------
INR188.0 Million Rupee Term Loan CRISIL B+/Stable
(Upgraded from 'CRISIL D')
INR87.0 Million Cash Credit CRISIL B+/Stable
(Upgraded from 'CRISIL D')
INR7.5-Mil. Standby Line of Credit CRISIL B+/Stable (Assigned')
INR17.5 Million Letter of Credit CRISIL A4
(Upgraded from 'CRISIL D')
The rating upgrade reflects the timeliness in servicing of debt
by ISPL. The rating upgrade also factors in improvement in the
ISPL group's liquidity because of improvement in its scale of
operations with sustained profitability driven by improvement in
the overall demand scenario (especially in the export market) and
stabilization of the group's new unit of micromachining tools.
This led to increase in the net cash accruals which helped the
group to utilize its bank lines within the stipulated limits.
CRISIL believes that the ISPL group will maintain its liquidity
on the back of its improved revenues and sustained profitability.
The ratings reflect the ISPL group's small scale of operations,
small net worth, and large working capital requirements. These
rating weaknesses are partially offset by the group's healthy
operating margin, driven by its position and extensive experience
of promoters in the printed circuit board (PCB) tool industry,
and moderate financial risk profile marked by moderate gearing
and debt protection metrics.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of ISPL and its subsidiary Axis Europe,
Gmbh (Axis). Axis is owned by the promoters of ISPL and is a
marketing arm for ISPL in the export market.
Outlook: Stable
CRISIL believes that the ISPL group's scale of operations will
remain small over the medium term because of its position in the
niche industry. The outlook may be revised to 'Positive' if the
group reports higher-than-expected revenues and profitability
leading to further improvement in its liquidity or if the
performance of its subsidiary improves leading to improvement in
its capital structure. Conversely, the outlook may be revised to
'Negative' if the ISPL group reports lower-than-expected revenues
and profitability leading to deterioration in its liquidity or if
the group undertakes a larger-than-expected debt-funded capital
expenditure programme leading to deterioration in its capital
structure.
About the Group
Set up in 1987 by Mr. Sunil Taneja, ISPL was set up under a joint
venture (JV) agreement with Sphinx Werke Mueller AG
(Switzerland). The collaboration between the two entities ended
in 1992 as the JV agreement was for five years. After that, ISPL
was reconstituted as a public limited company in February 1995.
About 64% of the shares of the company are owned by its founder,
Mr. Sunil Taneja, and his wife and their group company (Helix
Precision Ltd). About 26% stake is owned by Mrs. Gertrud Klausler
(wife of Late Dr. Joseph Klausler who was shareholder in ISPL).
All the technical work in ISPL is handled and managed by Mr.
Taneja, assisted by experienced technocrats who are with the
company with very long. ISPL manufactures tungsten carbide tools
used for PCB drilling/routing and micromachining. The company has
two manufacturing facilities at Parwanoo (Himachal Pradesh) with
capacity to produce 1050 million units of 1 millimetre drills per
annum. Around 60-65% of ISPL's products are exported out of which
30% are marketed through its subsidiary, Axis, in Europe.
For 2010-11 (refers to financial year, April 1 to March 31), ISPL
reported on provisional basis a profit after tax (PAT) of INR22.2
million on net sales of INR298.0 million, against a PAT of INR5.2
million on net sales of INR242.0 million for 2009-10.
JSS STEELITALIA: CRISIL Reaffirms 'CRISIL BB-' Cash Credit Rating
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CRISIL's ratings on the bank facilities of J.S.S. Steelitalia Ltd
continue to reflect the benefits that JSS derives from its
promoters' experience in the steel industry, and its moderate net
worth and low gearing.
Facilities Ratings
---------- -------
INR130.00 Million Cash Credit CRISIL BB-/Stable (Reaffirmed)
INR70.00 Million Proposed LT CRISIL BB-/Stable (Reaffirmed)
Bank Loan Facility
INR50.00 Mil. Letter of Credit/ CRISIL A4+ (Reaffirmed)
Bank Guarantee
These rating strengths are partially offset by the company's
average scale of operations, susceptibility of margins to
volatility in raw material prices, and depressed cash accruals,
driven by low operating profitability, resulting in weak debt
protection metrics.
Outlook: Stable
CRISIL believes that JSS's debt protection metrics will remain
weak over the medium term because of the company's depressed cash
accruals driven by an average scale of operations and low
profitability. The outlook may be revised to 'Positive' if the
company's cash accruals increase substantially because of
increase in sales and improvement in profitability resulting in
improvement in the company's liquidity and debt protection
metrics. Conversely, the outlook may be revised to 'Negative' if
JSS generates low cash accruals as a result of lower-than-
expected sales and profitability, or if it undertakes any large,
debt-funded capital expenditure programme resulting in
deterioration in its capital structure.
About J.S.S. Steelitalia
Set up in 2007, JSS is a 51:33:16 joint venture between Inox
Market Services, S.r.l, Italy (Inox), Jindal Stainless Steelway
Ltd, and Jensita Holding Ltd, Cyprus. The company, which
commenced operations in October 2008, manufactures stainless
steel tubes and pipes. Its facility at Gurgaon (Haryana) has
capacity to manufacture around 35,000 tonnes of stainless steel
tubes and pipes per annum.
JSS reported a loss of INR18.2 million on net sales of INR652.8
million for 2010-11 (refers to financial year, April 1 to
March 31), against a loss of INR1.6 million on net sales of
INR457.8 million for 2009-10.
KAPIL SOLVEX: CRISIL Assigns 'CRISIL B+' Rating to INR60MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Kapil Solvex Pvt Ltd.
Facilities Ratings
---------- -------
INR150 Million Cash Credit CRISIL B+/Stable (Assigned)
INR60 Million Rupee Term Loan CRISIL B+/Stable (Assigned)
The ratings reflect KSPL's below-average financial risk profile,
marked by high gearing and weak debt protection metrics, limited
pricing flexibility because of intense market competition, and
susceptibility to adverse regulatory changes. These rating
weaknesses are partially offset by KSPL's efficient debtor
collection mechanism, and easy access to raw material sources.
Outlook: Stable
CRISIL believes that KSPL will continue to benefit from its
strategic location in the soy-seed-growing belt of India. The
outlook may be revised to 'Positive' if KSPL's revenue growth and
profitability are higher than expected, or if its capital
structure improves because of sizeable equity infusion.
Conversely, the outlook may be revised to 'Negative' in case of
KSPL's debt protection metrics weaken further, most likely
because of larger-than-expected debt-funded capital expenditure
or a significant decline in operating margin.
About Kapil Solvex
KSPL, based in Maharashtra, is engaged in processing soya bean
oil, cattle feed, and de-oiled cake from soya bean seeds. The
commercial operations of the company commenced in June 2009. The
company has a unit in Nanded (Maharashtra), with installed
capacity of 300 tonnes per day for soya seed crushing. KSPL sells
crude soya oil to various refineries through brokers in
Maharashtra, Delhi, Chhattisgarh, and Madhya Pradesh, and sells
de-oiled cakes to poultries and hatcheries in Andhra Pradesh,
Karnataka, and Tamil Nadu.
KSPL's profit after tax (PAT) and net sales are estimated at
INR15 million and INR779 million for 2010-11 (refers to financial
year, April 1 to March 31); the company reported a PAT of INR0.5
million on net sales of INR383 million for 2009-10.
MERIDIAN APPARELS: Inadequate Info Cues Fitch to Withdraw Ratings
-----------------------------------------------------------------
Fitch Ratings has withdrawn India-based Meridian Apparels
Limited's 'BB-(ind)nm' National Long-Term rating.
Simultaneously, the agency has withdrawn the ratings on
Meridian's instruments as follows:
-- INR177.7m long-term loans: 'BB-(ind)nm'; rating withdrawn;
-- INR359m fund-based working capital limits: 'BB-
(ind)nm'/'F4(ind)nm' ; ratings withdrawn
-- INR20m non-fund based working capital limits : 'BB-
(ind)nm'/'F4(ind)nm' ; ratings withdrawn
-- INR16.0m treasury (forwards/options) limits: 'BB-
(ind)nm'/'F4(ind)nm' ; ratings withdrawn
The ratings have been withdrawn due to lack of adequate
information. Fitch will no longer provide ratings or analytical
coverage of Meridian.
NAVYA INDUSTRIES: CRISIL Rates INR50MM LT Loan at 'CRISIL D'
------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Navya Industries Pvt Ltd.
Facilities Ratings
---------- -------
INR150 Million Cash Credit CRISIL D (Assigned)
INR50 Million Long-Term Loan CRISIL D (Assigned)
INR95 Million Proposed Long-Term CRISIL D (Assigned)
Bank Loan Facility
INR5 Million Bank Guarantee CRISIL D (Assigned)
The rating reflects instances of delay by NIPL in servicing its
debt. The delays have been caused by NIPL's weak liquidity, as
its operations are in the start-up phase.
NIPL has a weak financial risk profile, marked by small net
worth, high gearing, and weak debt protection metrics. The
ratings also reflect NIPL's large working capital requirements,
and small scale of operations. These weaknesses are partially
offset by the extensive industry experience of NIPL's promoters
in the soya industry prior to setting up NIPL.
About Navya Industries
NIPL, promoted by Mr. Mithilesh Choudhary, was incorporated in
December 2005. It is engaged in production of soya oil and de-
oiled cakes (DOC) through solvent extraction process. The
company's production unit, having a crushing capacity of 500
tonnes per day of soya seeds, commenced commercial production in
April 2010; 2010-11 was its first year of operations in the soya
industry. Between 2005-06 (refers to financial year, April 1 to
March 31) and 2009-10, NIPL also undertook civil construction
work for telecommunication towers and erection of
telecommunication towers on a very small scale.
NIPL reported a net loss of INR0.3 million on net sales of
INR0.09 million for 2009-10, as against a net profit of INR0.01
million on net sales of INR1.76 million for 2008-09.
NIZAM DECCAN: CRISIL Cuts Rating on INR556.9MM Loan to 'CRISIL D'
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Nizam
Deccan Sugars Ltd to 'CRISIL D/CRISIL D' from 'CRISIL C/CRISIL
A4'.
Facilities Ratings
---------- -------
INR556.9 Million Term Loan CRISIL D (Downgraded from
'CRISIL C')
INR928 Million Cash Credit CRISIL D (Downgraded from
'CRISIL C')
INR362.4 Mil. Proposed Term Loan CRISIL D (Downgraded from
'CRISIL C')
INR5 Million Letter of Credit & CRISIL D (Downgraded from
Bank Guarantee 'CRISIL A4')
The downgrade reflects instances of delay by NDSL in servicing
its debt; the delays have been caused by NDSL's weak liquidity
arising from large working capital requirements and seasonality
in operations.
NDSL also has a weak financial risk profile, marked by a negative
net worth and stressed liquidity, and is exposed to adverse
regulatory risks. NDSL, however, benefits from its improving
operational capabilities supported by its integrated facilities.
About Nizam Deccan
Incorporated in June 2002, NDSL is a 51:49 venture between Dr. G
Ganga Raju and family (promoters of the Laila group of companies)
and Nizam Sugars Ltd (NSL; 98.8% owned by Government of Andhra
Pradesh). Besides a distillery, NDSL also acquired three sugar
mills, one each at Bodhan, Medak, and Metpally in the Telangana
region (Andhra Pradesh), as part of the privatisation of NSL.
Currently, NDSL has an aggregate cane crushing capacity of 8500
tonnes per day, a distillery with capacity of 31,500 bulk litres,
and a bagasse-based co-generation plant with a capacity of 20
megawatts.
NDSL reported a profit after tax (PAT) of INR49.9 million on net
sales of INR1.10 billion for 2009-10 (refers to financial year,
April 1 to March 31), against a loss after tax of INR174.6
million on net sales of INR1.41 billion for 2008-09. For 2010-11,
the company has report provisional revenues of INR910.4 million.
P.I. JEWELLERS: CRISIL Rates INR160MM Cash Credit at 'CRISIL BB-'
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long-
term bank facilities of P I Jewellers Pvt Ltd.
Facilities Ratings
---------- -------
INR160 Million Cash Credit CRISIL BB-/Stable (Assigned)
The rating reflects PIJ's modest financial risk profile, marked
by high ratio of total outside liabilities to tangible net worth,
a low interest coverage ratio and small net worth, large working
capital requirements, small scale of operations, and geographic
concentration. These rating weaknesses are partially offset by
the extensive industry experience of PJI's promoters.
Outlook: Stable
CRISIL believes that PIJ will continue to benefit from its
promoters' extensive experience in the jewellery industry, over
the medium term. However, its financial risk profile is expected
to remain constrained by its large working capital requirements
and large debt. The outlook may be revised to 'Positive' in case
of equity infusion into the company by PIJ's promoters or if it
diversifies its retail operations, resulting in more-than-
expected profitability and cash accruals. Conversely, the outlook
may be revised to 'Negative' in case of more-than-expected
increase in working capital requirements.
About P I Jewellers
Set up in 1995 as a proprietorship firm by Mr. Aman Dheer, PIJ
was reconstituted as a private limited company in 2006. The
company trades gold and diamond jewellery, and has a retail
outlet in Ludhiana (Punjab) named P I Jewellers. About 30% of the
company's revenues are contributed by retail sales, and the rest
from wholesale trading.
PIJ reported a profit after tax (PAT) of INR3.7 million on net
sales of INR584.4 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR1.9 million on net
sales of INR413.9 million for 2008-09.
PARAGON SYNTHETICS: CRISIL Puts CRISIL B Rating on INR35.5MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Paragon Synthetics And Polymers Ltd.
Facilities Ratings
---------- -------
INR35.5 Million Term Loan CRISIL B/Stable (Assigned)
INR25 Million Cash Credit CRISIL B/Stable (Assigned)
INR50 Million Bank Guarantee CRISIL A4 (Assigned)
The ratings reflect PSPL's weak financial risk profile, marked by
small net worth and high gearing, susceptibility to adverse
changes in government policies, concentration of revenues in
Gujarat, and susceptibility of margins to volatility in input
prices. These rating weaknesses are partially offset by strong
growth in PSPL's topline, supported by the industry experience of
its promoters and its established dealership network.
Outlook: Stable
CRISIL believes that PSPL will continue to benefit from
promoters' industry experience and its established dealership
network. The outlook may be revised to 'Positive' in case of an
improvement in PSPL's financial risk profile, particularly
liquidity, most likely driven by more-than-expected cash
accruals. Conversely, the outlook may be revised to 'Negative' in
case PSPL's liquidity deteriorates, most likely because of
pressure on profitability or any adverse change in government
policies.
About Paragon Synthetics
PSPL was set up in 1995 in Gujarat by Mr. Purushottam Patel and
his sons, Mr. Narendra P. Patel, Hitesh P. Patel. It manufactures
various micro-irrigation systems, including drip irrigation
systems (contributing 92% of its revenues), mini sprinkler
irrigation systems, and sprinkler irrigation systems. It also
manufactures high-density polyethylene (HDPE) pipes, linear low-
density polyethylene (LLDPE) pipes, and polyvinyl chloride (PVC)
pipes. PSPL has two plants in Baroda (Gujarat). It recently
undertook a capital expenditure programme to double its
production capacity. Its current installed capacity for drip-line
pipes is 125 million metres per year and 4530 tonnes per annum
for HDPE, LLDPE, and PVC pipes and fittings.
PSPL's profit after tax (PAT) and net sales are estimated at
INR1.9 million and INR420.4 million respectively for 2010-11
(refers to financial year, April 1 to March 31); the company
reported a PAT of INR5.0 million on net sales of INR304.6 million
for 2009-10.
PRIME GOLD: CRISIL Assigns CRISIL BB Rating to INR65MM Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of Prime Gold International Ltd.
Facilities Ratings
---------- -------
INR65 Million Term Loan CRISIL BB/Stable (Assigned)
INR85 Million Cash Credit CRISIL BB/Stable (Assigned)
INR40 Million Letter of Credit CRISIL A4+ (Assigned)
The ratings reflect PGIL's moderate financial risk profile,
marked by moderate gearing and an average net worth, and
promoter's extensive industry experience. These rating strengths
are partially offset by PGIL's small scale of operations, lack of
backward integration leading to low operating margin, and
exposure to intense competition in the fragmented thermo-
mechanically treated (TMT) steel bar industry.
Outlook: Stable
CRISIL believes that PGIL will continue to benefit from
promoter's extensive industry experience. The outlook may be
revised to 'Positive' if PGIL increases its scale of operations
and improves its profitability significantly, leading to
improvement in its debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if PGIL undertakes larger-
than-expected debt-funded capital expenditure programme or faces
significant pressure on revenue and margins.
About Prime Gold
PGIL was incorporated in 1997 and manufactures steel TMT bars.
The company was originally incorporated as Lakshay Farms &
Orchards Pvt Ltd. It remained non-operational till 2005. In 2007,
its name was changed to the current one following partition of
the business among the promoter brothers. PGIL has installed
capacity of 6000 tonnes per annum (tpa) for mild steel ingots;
its rolling unit has capacity to manufacture 48,000 tpa for TMT
bars. PGIL sells TMT bars under the brand Prime Gold. The company
is owned by Mr. Pradeep Kumar Aggarwal, who was one of the
founding promoters of the Kamdhenu group, engaged in production
of steel long products under the Kamdhenu brand.
PGIL's profit after tax (PAT) and net sales are estimated at INR3
million and INR1445 million respectively for 2010-11 (refers to
financial year, April 1 to March 31). The company reported a PAT
of INR4 million on net sales of INR1416 million for 2010-11.
PURNA GLOBAL: CRISIL Rates INR144.6-Mil. Term Loan at 'CRISIL D'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the term loan
facility of Purna Global Textiles Park Ltd.
Facilities Ratings
---------- -------
INR144.6 Million Term Loan CRISIL D (Assigned)
The rating reflects instances of delay by PGT in servicing its
debt; the delays have been caused by the company's weak
liquidity.
PGT also faces risks associated with project implementation and
cyclicality in the textile industry. These rating weaknesses are
partially offset by the benefits that PGT is expected to derive
from availing the Scheme for Integrated Textile Park.
About Purna Global
PGT, set up on December 31, 2007, is a special-purpose vehicle
(SPV) set up for development, implementation, and operation and
management of upcoming textile park. PGT is in process of setting
up infrastructure for the whole value chain -- ginning and
pressing, spinning and processing, pre-weaving (wrapping/sizing),
weaving, and garments. The project is coming up in two phases.
The cost of the first phase is INR427.2 million, funded by equity
of INR64.1 million, debt of INR144.6 million, and grants from
state and central governments; the first phase is expected to be
complete by December 2011.
RUDRA TECHNO: Limited Track Record Cues Fitch to Put Low-B Rating
-----------------------------------------------------------------
Fitch Ratings has assigned India's Rudra Techno Feeds a National
Long-Term rating of 'Fitch B(ind)'. The Outlook is Stable.
The ratings reflect RTF's limited track record of operations, the
commodity nature of its business and its stretched liquidity
position. The ratings are also constrained by the partnership
nature of the business. The ratings, however, draw comfort from
the experience of the company's partners in fish feed trading.
A negative rating action may result from Rudra's EBITDA/gross
interest expense (interest coverage ratio) remaining below 1.5x
on a sustained basis or its failure in procuring additional
working capital limits. A positive rating action may result from
achievement of management-projected growth numbers for FY12, with
revenues above INR300 million and gross debt/EBITDA below 4.0x.
RTF commenced operations in January 2011. It is an extruded
floating fish feed manufacturer based in Bhimavaram, Andhra
Pradesh, with a capacity of 72,000 tonnes per annum. Fish feed
manufacturing comes under priority sector. Rudra sells its
products under the brand name of TRAfed and Tekwin. In FY11, the
company reported revenue of INR59 million and an operating EBITDA
of INR17.7 million.
RTF:
-- INR100m of term loan: assigned 'Fitch B(ind)'; and
-- INR35m of fund-based working capital limits: assigned
'Fitch B(ind)'/'Fitch A4(ind)'.
RUHATIYA COTTON: CRISIL Ups Rating on INR70MM Loan to 'CRISIL B'
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Ruhatiya Cotton and Metal Pvt Ltd to 'CRISIL B/Stable' from
'CRISIL B-/Stable'.
Facilities Ratings
---------- -------
INR70 Million Cash Credit CRISIL B/Stable
(Upgraded from
'CRISIL B-/Stable')
The upgrade reflects CRISIL's belief that RCM will sustain its
profit margins at higher levels than those in the past, thereby
translating into a significant improvement in the company's cash
accruals and debt protection metrics. For 2010-11 (refers to
financial year, April 1 to March 31), RCM reported, on a
provisional basis, revenues of INR680.1 million (a year-on-year
growth of 28%) and an operating margin of 2.18% (1.15% in 2009-
10). The increase in revenues was driven by improved realisations
and higher offtake in the cotton yarn industry.
The rating, however, continues to reflect RCM's weak financial
risk profile, marked by a small net worth, low profitability, and
moderate debt protection metrics, coupled with the company's
susceptibility to risks inherent in the commodity (cotton)
business and to volatility in cotton prices. These rating
weaknesses are partially offset by RCM's promoters' experience in
the cotton ginning and pressing business.
Outlook: Stable
CRISIL believes that RCM will continue to benefit over the medium
term from its promoters' experience in the cotton ginning and
spinning business. The outlook may be revised to 'Positive' if
RCM's financial risk profile improves, driven by higher-than-
expected growth in revenues and profitability. Conversely, the
outlook may be revised to 'Negative' if the company reports
lower-than-expected revenues and profitability, or if there is a
sharp deterioration in its debt protection metrics or if it
extends significant financial support to other group companies.
About Ruhatiya Cotton
RCM, incorporated in 1984, is promoted and managed by Mr.
Kaluramji Ruhatiya and his family members. The company is part of
the Ruhatiya group, which has various business interests,
including operating dal mills, commodity trading, and cotton
ginning. The group has been in business for the past 50 years.
RCM is engaged in cotton yarn ginning and pressing. Its head
office and manufacturing unit are in Akola (Maharashtra).
RCM reported, on a provisional basis, a profit after tax (PAT) of
INR2.4 million on net sales of INR680.1 million for 2010-11; the
company reported a PAT of INR1.8 million on net sales of INR528.4
million for 2009-10.
SHRI PARIYUR: Inadequate Info Cues Fitch to Withdraw 'B' Rating
---------------------------------------------------------------
Fitch Ratings has withdrawn the 'B-(ind)nm' National Long-Term
rating on India-based Shri Pariyur Amman Kraft Papers Private
Limited and its proposed INR47.5 million term loan.
The ratings have been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of SPAK.
SREE DHANYA: Inadequate Info Cues Fitch to Withdraw Low-B Ratings
-----------------------------------------------------------------
Fitch Ratings has withdrawn India-based Sree Dhanya Construction
Company's 'B+(ind)nm' National Long-Term rating.
The ratings have been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of SDCC.
SDCC:
-- National Long-Term rating: 'B+(ind)nm'; rating withdrawn;
-- INR95m fund-based working capital limits: 'B+(ind)nm';
rating withdrawn; and
-- INR90m non-fund based working capital limits: 'F4(ind)nm';
rating withdrawn.
STORK FERRO: Debt Payment Delays Cue Fitch to Cut Rating to 'C'
---------------------------------------------------------------
Fitch Ratings has downgraded India-based Stork Ferro and Mineral
Industries Pvt. Ltd.'s National Long-Term rating to 'Fitch
C(ind)' from 'Fitch B-(ind)'.
The downgrades reflect delays in debt servicing by SFMIPL on
account of delays in the commencement of commercial operations at
furnace I of its ferro alloys manufacturing plant. The ratings
remain constrained by the company's ongoing debt-led capex of
INR500m for setting up another furnace, which is expected to keep
liquidity under pressure.
Positive rating guidelines include an improvement in SFMIPL's
liquidity position resulting in timely repayments of its term
liabilities and interest obligation for two consecutive quarters.
SFMIPL was established in November 2006, and is a 100%-owned
subsidiary of Stork Holding G.m.b.H, Austria. The company has
started commercial operations at furnace I from June 2011 after a
delay of one year. The total cost of the project was INR661.7
million, funded by equity (INR362.4 million) and debt (INR299.3
million).
Fitch has also taken the following rating actions on SFMIPL's
bank loans:
-- INR300m long-term loans: downgraded to 'Fitch C(ind)' from
'Fitch B-(ind)'
-- INR160m fund-based limits (increased from INR91.8m):
downgraded to 'Fitch C(ind)' from 'Fitch B-(ind)'
-- INR60m non-fund-based limits of: affirmed at 'Fitch A4(ind)'
SUEET & ASSOC: Consistent Growth Cues Fitch to Put Low-B Ratings
----------------------------------------------------------------
Fitch Ratings has assigned India's Sujeet & Associates a National
Long-Term rating of 'Fitch B+(ind)'. The Outlook is Stable.
The ratings reflect the consistent growth in Sujeet's revenues
since its establishment and its comfortable debt metrics. As per
the firm's estimates for FY11, its revenue grew by 45.7% yoy to
INR308 million (FY09: INR142.9 million), with EBITDA margin of
8.0% (FY10: 6.4%, FY09: 4.4%). Consequently, its gross interest
coverage, though declined, was comfortable at 5.7x in FY11 (FY10:
8.4x, FY09: 3.8x), while its net financial leverage (adjusted
debt net of cash/operating EBITDA) improved to 0.6x in FY11 from
1.0x in FY10 (FY09: 2.6x).
The ratings are constrained by Sujeet's small size and pressure
on its margins, making it vulnerable to liquidity pressures in a
highly competitive and fragmented market. The ratings are
further constrained by the company's weak order book of INR204.5
million as of end-June 2011 (0.66x of FY11 revenues). Further,
Fitch notes that Sujeet faces client concentration risk as 95.5%
of its construction revenue was derived from National Highways
Authority of India ('AAA(ind)'/Stable) in FY10.
A positive rating action may result from a significant increase
in Sujeet's profitability on a sustained basis. Conversely, a
negative rating action may result from any decline in its
profitability deteriorating its net financial leverage.
Sujeet was incorporated in February 2001 as a partnership firm,
owned by Sujeet Kumar Singh and Kiran Singh. The firm was
converted to a private limited concern as M/s Harsh Global
Private Limited in November 2010. It is primarily engaged in
road construction and civil work for the Government of India,
state governments and semi government departments and is also a
distributor of the products and services of Reliance Infocomm
Limited. Its head office is in Varanasi, Uttar Pradesh. The
construction business contributed around 65% to Sujeet's revenue
in FY10.
Sujeet's bank facilities have been rated as follows:
-- INR8.5m long-term loans: 'Fitch B+(ind)';
-- INR7.5m fund-based working capital limits: 'Fitch B+
(ind)'/'Fitch A4(ind)'; and
-- INR60m non-fund-based limits: 'Fitch A4(ind)'.
SWARN SARITA: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating
-------------------------------------------------------------
CRISIL's rating on the bank facilities of Swarn Sarita Jewellers
Pvt Ltd continue to reflect SSJPL promoter's experience in the
jewellery business and the funding support that the company is
expected to continue to receive from the promoters.
Facilities Ratings
---------- -------
INR100 Million Cash Credit CRISIL BB/Stable (Reaffirmed)
These rating strengths are partially offset by SSJPL's small
scale of operations, moderate financial risk profile on account
of large working capital requirements, and susceptibility to
intense competition in the jewellery industry and to volatility
in gold prices.
Outlook: Stable
CRISIL believes that SSJPL's scale of operations will remain
small over the medium term. The outlook may be revised to
'Positive' if SSJPL increases its scale of operations and
improves its margins. Conversely, the outlook may be revised to
'Negative' if there is significant pressure on SSJPL's
profitability because of increase in gold prices or pressure on
its liquidity because of increased working capital requirements.
Update
SSJPL reported more-than-expected operating income of INR800
million for 2010-11 (refers to financial year, April 1 to
March 31), driven by more-than-expected volume growth coupled
with increase in price of gold. However, this has been partially
offset by slightly lower-than-expected operating margin of 2.2%
in 2010-11. Working capital requirements were more than
expectation because of increase in price of gold and increase in
receivables level. The company funded its more-than-expected
working capital requirements through bank debt, equity infusion
of INR20 million and unsecured loans from promoters of INR43
million. As a result the gearing level was broadly in line with
expectations at 1.4 times as on March 31, 2011.
SSJPL reported a profit after tax (PAT) of INR5.05 million on net
sales of INR801.0 million for 2010-11, against a PAT of INR3.33
million on net sales of INR425.0 million for 2009-10.
About Swarn Sarita
SSJPL trades in gold- and diamond-studded jewellery. The company
specializes in antique and Calcutta jewellery. It sells to
retailers in Mumbai, Bangalore, Kolkata, and Ahmedabad. SSJPL has
a 1000-square-foot showroom in Jhaveri Bazaar, Mumbai.
VELANKANI INFRA: CRISIL Cuts Cash Credit Rating to 'CRISIL B-'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Velankani Infrastructure & Projects Pvt Ltd to 'CRISIL B-
/Stable' from 'CRISIL BB-/Negative', while reaffirming the rating
on short-term bank facility at 'CRISIL A4'.
Facilities Ratings
---------- -------
INR50 Million Cash Credit CRISIL B-/Stable (Downgraded
from 'CRISIL BB-/Negative')
INR50 Million Bank Guarantee CRISIL A4 (Reaffirmed)
The downgrade reflects VIPPL's low revenue visibility, and high
concentration in executing projects for group companies. VIPPL
had an order book of around INR14.3 billion, as of March 31,
2011; however, of the same, around INR14 billion is a single work
order received from group entity Velankani Renewable Energy Pvt
Ltd for setting up a 216-megawatt hydro power plant in Sikkim on
engineering, procurement and construction basis. Work has,
however, not commenced as there is a dispute over the awarding of
the contract to VREPL and financial closure has not completed;
this has resulted in bleak revenue visibility over the medium
term with actual orders on hand of less than INR300 million. The
downgrade also factors in the sharp decline in the company's
revenues in 2010-11 (refers to financial year, April 1 to
March 31) by 83% to INR46.9 million, as compared to revenues in
2009-10, due to delay in project clearances.
The ratings reflect VIPPL's weak financial risk profile, marked
by small net worth and weak debt protection metrics, small scale
of operations, low revenue visibility and limited track record in
executing hydro electric projects. These rating weakness are
partially offset by VIPPL's promoter's experience of over a
decade in the construction business.
Outlook: Stable
CRISIL believes that VIPPL will sustain its credit risk profile,
supported by its promoter's experience, of over 10 years, in the
construction business. The outlook may be revised to 'Positive'
if there is significant improvement in its scale of operations,
supported by new projects or commencement and execution of
VREPL's order, leading to larger cash accruals and improved
profitability. Conversely, the outlook may be revised to
'Negative' if VIPPL's revenues and profitability decline, most
likely because of absence of new orders or delays in execution of
current projects, or if the company's financial risk profile
deteriorates, most likely because of larger-than-expected working
capital borrowings.
About Velankani Infrastructure
VIPPL was originally set up in 2000 as Caliber Construction
Company Pvt Ltd by Mr. Kiron Shah; the company's name was changed
to VIPPL in February 2008. Based out of Bangalore, VIPPL is into
construction of special economic zones (SEZs), hotels, and
industrial and residential buildings. From 2010-11, VIPPL entered
into execution of hydro electric projects. The company is part of
the Velankani group, which has diverse business interests,
including software services, construction, real estate, and SEZ
development. Currently, VIPPL is executing two hydro electric
projects at Himachal Pradesh and Sikkim.
VIPPL reported, on a provisional basis, a profit after tax (PAT)
of INR6.4 million on net sales of INR46.9 million for 2010-11,
against net losses of INR41.2 million on net sales of INR271.8
million for 2009-10.
VIRAJ STEEL: CRISIL Assigns 'CRISIL D' Rating to INR150MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Viraj Steel & Energy Ltd.
Facilities Ratings
---------- -------
INR250.0 Million Cash Credit CRISIL D (Assigned)
INR150.0 Million Working Capital CRISIL D (Assigned)
Demand Loan
INR1230.0 Million Term Loan CRISIL D (Assigned)
INR4.0 Million Proposed Long-Term CRISIL D (Assigned)
Bank loan Facility
INR60.0 Million Letter of Credit CRISIL D (Assigned)
INR15.0 Million Bank Guarantee CRISIL D (Assigned)
The ratings reflect instances of delay by VSEL in servicing its
term loan; the delays have been caused by VSEL's weak liquidity,
arising from the company's large, ongoing, debt-funded capital
expenditure.
VSEL also has a weak financial risk profile marked by a high
gearing, because of accumulated losses, and a small market share
in the steel industry, wherein operating margins are vulnerable
to cyclicality. However, VSEL benefits from its moderately
integrated operations.
About Viraj Steel
VSEL, incorporated in 2004, commenced commercial production in
2006. The company is owned and operated by Mr. Kamal Lalwani,
Mr. Jitender Lalwani, Mr. Shashikant Chaursisa, and Mr. R D Rai.
VSEL manufactures sponge iron and mild steel billets. It has an
installed capacity of 220,000 tonnes per annum (tpa) of sponge
iron and 280,000 tpa of billets at its facility in Sambalpur
(Orissa). The company also has a waste heat recovery based power
plant of 16-megawatt (MW) capacity and atmospheric fluidised bed
combustion based power plant with 14 MW capacity.
VSEL reported a profit after tax (PAT) of INR87.7 million on net
sales of INR1399.4 million for 2009-10, against a net loss of
INR222.9 million on net sales of INR966.9 million for 2008-09.
=========
J A P A N
=========
L-JAC 3: Moody's Reviews 'B2' Rating on Class D-1 Certificates
--------------------------------------------------------------
Moody's Japan K.K. has placed on review for possible downgrade
the ratings on the Class D-1 through G-1 of L-JAC 3 trust
certificates.
Class D-1, B2 (sf) placed under review for possible downgrade;
previously on March 1, 2011 downgraded to B2 (sf)
Class E-1, B3 (sf) Placed Under Review for Possible Downgrade;
previously on March 1, 2011 downgraded to B3 (sf)
Class F-1, Caa1 (sf) placed under review for possible downgrade;
previously on March 1, 2011 downgraded to Caa1 (sf)
Class G-1, Caa2 (sf) placed under review for possible downgrade;
previously on March 1, 2011 downgraded to Caa2 (sf)
Deal Name: L-JAC III Trust
Class: Class D-1 through I, G-1 trust certificates
Issue Amount (initial): JPY8,300 million
Dividend: Floating
Issue Date (initial): Oct. 12, 2006
Final Maturity Date: April, 2013
Underlying Asset (initial): Seven non-recourse loans backed by
real estate
Originator: New Century Finance Co., Ltd., (as of the issue date)
Arranger: Lehman Brothers Japan Inc. (as of the issue date)
L-JACIII Trust, effected in October 2006, represents the
securitization of seven loans backed by real estate. The
Originator entrusted the loans to the Asset Trustee, and received
the Class A through I, X-1 and X-2 trust certificates, which it
then sold through the Arranger to investors.
The trust certificates are rated by Moody's.
In this transaction, the interest and principal payments from the
underlying loans are made sequentially.
Six of the seven loans have been paid down in full. The
transaction is now secured by one loan backed by a retail
property in suburban Tokyo.
The owner of the property and its only tenant are in a dispute
over the rent and terms of the lease.
Moody's needs to re-consider its rent estimates, given that the
rent after the dispute may fall from that assumed at the time of
the previous rating action. Moody's will re-assess its recovery
stress assumptions.
In addition, Moody's is taking into account the declining
likelihood for refinancing because of high LTVs. Thus, Moody's
reviews the rating levels on Class D-1 through G-1.
L-JAC 5 TRUST: Moody's Reviews 'Ca' Rating on Class C Notes
-----------------------------------------------------------
Moody's Japan K.K has changed the ratings for the Class A through
C, D-2, E-2, F-2 and G-2 Trust Certificates issued by L-JAC 5
trust. The final maturity of the Trust Certificates will take
place in August 2015.
Class A, Baa1 (sf) Placed Under Review for Possible Downgrade;
previously on July 14, 2010 Downgraded to Baa1 (sf)
Class B, B1 (sf) Placed Under Review for Possible Downgrade;
previously on June 22, 2011 Downgraded to B1 (sf)
Class C, Downgraded to Ca (sf); previously on June 22, 2011
Downgraded to Caa3 (sf)
Class D-2, Downgraded to C (sf); previously on June 22, 2011
Downgraded to Caa3 (sf)
Class E-2, Downgraded to C (sf); previously on June 22, 2011
Downgraded to Caa3 (sf)
Class F-2, Downgraded to C (sf); previously on June 22, 2011
Downgraded to Caa3 (sf)
Class G-2, Downgraded to C (sf); previously on June 22, 2011
Downgraded to Caa3 (sf)
Deal Name: L-JAC 5 trust
Class: Class A through C and Class D-2, E-2, F-2, G-2 Trust
Certificates
Issue Amount (initial): Approximately JPY58,330 million
Dividend: Floating
Transfer Date of Trust Certificates: September 7, 2007
Final Maturity Date: August 2015
Underlying Asset (initial): 13 non-recourse loans
Entrustor: Lehman Brothers Japan Inc., and New Century Finance
Co., Ltd. (as of issue date)
Arranger: Lehman Brothers Japan Inc (as of issue date)
The L-JAC 5 Trust, effected in September 2007, represents the
securitization of 13 loans. Two loans were paid in full by their
maturity date and two defaulted loans were recovered after the
special servicing. The transaction is now secured by nine loans,
eight of which are under special servicing.
The Entrustor entrusted the Loan Receivables, divided into three
loan pools, to the Trustee. The Trustee in turn issued the Trust
Certificates of Class A through J-1 and Class X-1 and X-2. The
Trust Certificates are rated by Moody's.
The Trust Certificates of Class A through C are composed of sub-
classes which correspond to the three loan pools.
For each loan pool, the principal proceeds -- from scheduled
amortizations and prepayments -- will be allocated only within
the respective classes (including sub-classes) corresponding to
the specific loan pool.
The repayments distributed to each sub-class will be re-allocated
to Class A through C in proportion to each outstanding amount.
Loss allocation is based on a reverse-sequence in each loan pool.
For Classes A through C, losses allocated to each sub-class will
be added up and the total losses of sub-classes will be allocated
to Class A through C in reverse order of priority.
Rating Rationale
The current rating action and the review reflect these factors:
(1) Class C, D-2, E-2, F-2 and G-2 will incur losses, as a
result of the collection activity by the special servicer.
(2) According to the special servicer's business plan, the
expected disposition price of the office building in central
Tokyo -- backing one of eight loans under special servicing
-- is lower than Moody's previous assumptions.
(3) For Class A and B, Moody's needs to review these rating
levels after re-estimation of its recovery assumptions based
on special servicer's business plan.
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 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.
TITAN JAPAN: Moody's Cuts Rating on Class C Notes to 'Caa3'
-----------------------------------------------------------
Moody's Japan K.K. has downgraded the ratings on the Class A
through D Notes issued by Titan Japan, Series1 GK.
The final maturity of the notes is due in November 2012.
Class A, Downgraded to Ba1 (sf); previously on Jun 10, 2011 Baa1
(sf) Placed Under Review for Possible Downgrade
Class B, Downgraded to B2 (sf); previously on Jun 10, 2011 Ba2
(sf) Placed Under Review for Possible Downgrade
Class C, Downgraded to Caa3 (sf); previously on Jun 10, 2011 B2
(sf) Placed Under Review for Possible Downgrade
Class D, Downgraded to Caa3 (sf); previously on Jun 10, 2011
Caa2 (sf) Placed Under Review for Possible Downgrade
Deal Name: Titan Japan, Series1 GK
Class: Class A through D Notes
Issue Amount (initial): JPY125.8 billion
Dividend: Floating
Transfer Date of Notes: Dec. 6, 2007
Final Maturity Date: November 2012
Underlying Asset (initial): six non-recourse loans
Loan Originator: Credit Suisse Principal Investments Limited,
Tokyo Branch
Arranger: Credit Suisse Securities (Japan) Limited
Titan Japan, Series 1 GK, effected in December 2007, represents
the securitization of six non-recourse loans.
The loan originator launched six non-recourse loans and
transferred the loans to Titan Japan, Series1 GK. Titan Japan,
Series 1GK, in turn issued the Class A through D and Class X
Notes.
The notes were then sold through the arranger to investors. The
notes are rated by Moody's.
In this transaction, any payments from recovery collection in the
event of default are applied sequentially from the most senior
class of notes. The losses incurred by defaulted loans are
allocated in reverse sequential order from the most subordinate
class of the notes.
The transaction was initially secured by six loans, out of which
two have already been paid. Of the remaining four loans, two are
cross-collateralized and cross-defaulted. All four loans have
been placed under special servicing.
The special servicer has prepared its collection plans for the
remaining loans and the special servicing activities are
currently proceeding based on the plans. Moody's interviewed the
special servicer on its collection plans and the prospects for
the special serviced loans.
Rating Rationale
The current rating action reflects:
1) Two specially serviced loans (15.5% and 4.8% of initial
balance) are backed by office buildings mainly in Tokyo. It is
likely that the recovery through property sales for the
remaining properties may fall below Moody's recovery
assumptions in the previous rating action, given the results
from the special servicing activities thus far. Therefore,
Moody's recovery assumptions declined by approximately 51% and
40%, respectively, for the loans, compared with the initial
value.
2) The remaining two specially serviced loans (63.9% in total of
initial balance) are backed by 11 large retail buildings with
single tenants located in Tokyo and other provincial cities.
Two of the buildings have been vacant since the tenants moved
out of the properties. Moody's re-assessed its recovery
scenarios by considering the types and size scales that may
limit potential buyers. As such, it is highly likely that the
recovery from the loans may fall below Moody's previous
recovery assumptions and may be under stress until the legal
final maturity of the deal (approximately 15 months left).
Moody's has thus lowered its recovery assumptions by 51%
compared with its initial value.
3) As a result of the special servicing mentioned above, losses
on the remaining loans are highly likely and could negatively
affect the Class C and D notes.
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 third party due
diligence report on the underlying assets or financial
instruments relating to the monitoring of this transaction in the
past six months.
====================
N E W Z E A L A N D
====================
NATIONWIDE INSURANCE: S&P Affirms 'B' Counterparty Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed and subsequently
withdrawn its 'B/Stable/--' insurer financial strength and
counterparty credit ratings on New Zealand-based non-life
insurance company, Nationwide Insurance Co. Ltd. The ratings
have been withdrawn at the company's request. "The ratings
reflected our view of the ongoing support and financial strength
of Nationwide's larger associate company, Gilrose Finance Co.
Ltd. (not rated).
WINDFLOW TECHNOLOGY: Sells Spare Parts; Set Up Maintenance Unit
---------------------------------------------------------------
BusinessDay.co.nz reports that cash-strapped Windflow Technology
is selling off spare parts and setting up a subsidiary
maintenance services company in case it becomes insolvent.
According to BusinessDay.co.nz, Windflow Technology has set up a
subsidiary service company called Te Rere Hau Services to provide
operating and maintenance support services for NZ Windfarms'
recently completed Te Rere Hau wind farm, for which Windflow
supplied 97 of its Windflow 500 turbines.
BusinessDay.co.nz relates that the company said Windflow had
improved the liquidity of its balance sheet by selling off much
of its stock of spare parts for the Te Rere Hau wind farm
turbines to NZ Windfarms, and granted NZ Windfarms an option to
take over Te Rere Hau Services if Windflow becomes insolvent "and
various other events."
Under this arrangement, NZ Windfarms will also be granted various
securities over TSL, and other Windflow Technology assets
including a licence in favor of TSL to use Windflow Technology's
drawings, specifications and other documents for the purpose of
ensuring it can maintain Te Rere Hau in the long term,
BusinessDay.co.nz adds.
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.
ZION WILDLIFE: Goes Into Liquidation
------------------------------------
TVNZ reports that Zion Wildlife Gardens has been put into
liquidation.
The High Court in Whangarei has ruled that the struggling park
cannot pay its debts and has appointed a liquidator to shut down
the business, TVNZ relates.
According to TVNZ, an application to liquidate was made by Inland
Revenue with lawyer Phil Smith claiming that Zion owes more than
NZ$100,000 in taxes.
TVNZ relates that Mr. Smith said an Official Assignee will be
appointed as the liquidator and will work with receivers
PriceWaterhouseCoopers.
PriceWaterhouseCoopers was appointed as receiver two weeks ago
after it was revealed that Zion was failing to bring in enough
money to run, following a series of incidents including the death
of one of its handlers in 2009, TVNZ discloses.
TVNZ notes that receiver and PWC partner Colin McCloy said the
welfare of the animals at the park is one of the top priorities.
As reported in the Troubled Company Reporter-Asia Pacific on
July 28, 2011, stuff.co.nz said that Rabobank has called in
receivers from PricewaterhouseCoopers to place Zion Wildlife into
receivership. PWC partner and receiver Colin McCloy confirmed
the move several hours after park operator Patricia Busch went
public with her concerns that some of the Northland wildlife
reserve's big cat could be "put down" or relocated, according to
stuff.co.nz. The report noted that Mrs. Busch said her farm and
all of her land had been mortgaged in a bid to save the park.
stuff.co.nz disclosed that Mrs. Busch said that the park's income
had been drastically reduced due to a series of incidents;
including the stopping of wildlife encounters, the tragic death
of big cat handler Dalu Mncube and ongoing litigation between her
son, Craig "Lion Man" Busch, herself and various companies.
Zion Wildlife Gardens is a famous park in New Zealand.
=================
S I N G A P O R E
=================
ESENCO PTE: Creditors Get 7.25626% Recovery on Claims
-----------------------------------------------------
Esenco Pte Ltd declared the second and final dividend on July 29,
2011.
The company paid 7.25626% to the received claims.
The company's liquidators are:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
MIRAGE MOTOR: Court to Hear Wind-Up Petition on Sept. 2
-------------------------------------------------------
A petition to wind up the operations of Mirage Motor Pte Ltd will
be heard before the High Court of Singapore on Sept. 2, 2011, at
10:00 a.m.
United Overseas Bank Limited filed the petition against the
company on Aug. 11, 2011.
The Petitioner's solicitors are:
Khattarwong
No. 80 Raffles Place
#25-01 UOB Plaza 1
Singapore 048624
ORIENTAL GLOBAL: Court to Hear Wind-Up Petition on Sept. 2
----------------------------------------------------------
A petition to wind up the operations of Oriental Global Resources
Pte Ltd will be heard before the High Court of Singapore on
Sept 2, 2011, at 10:00 a.m.
Orion Logistics Pte Ltd filed the petition against the company on
Aug. 5, 2011.
The Petitioner's solicitors are:
Messrs Kelvin Lim & Partners
133 New Bridge Road
#11-05 Chinatown Point
Singapore 059413
PROCENTEC PTE: Creditors Get 100% Recovery on Claims
----------------------------------------------------
Procentec Pte Ltd will today, Aug. 23, 2011, declare the first
and final dividend.
The company will pay 100% to the received claims.
The company's liquidators are:
Chia Soo Hien
Leow Quek Shiong
c/o BDO LLP
21 Merchant Road
#05-01 Royal Merukh S.E.A. Building
Singapore 058267
PROGEN ENGINEERING: Creditors Get 100% Recovery on Claims
---------------------------------------------------------
Progen Engineering Pte Ltd declared the first interim dividend on
Aug. 17, 2011.
The company paid 100% for preferential and 50% for ordinary
claims.
The company's liquidators are:
Chee Yoh Chuang
Lim Lee Meng
c/o Stone Forest Corporate Advisory Pte Ltd
8 Wilkie Road #03-08
Singapore 228095
===========
T A I W A N
===========
S-TECH CORP: Fitch Raises National Long-Term Rating to CCC+(twn)
----------------------------------------------------------------
Fitch Ratings has upgraded Taiwan-based S-Tech Corp.'s National
Long-Term rating to 'CCC+(twn)' from 'CCC(twn)'. The Outlook is
Stable. The agency has also affirmed S-Tech's National Short-
Term rating at 'C(twn)'. Fitch has simultaneously withdrawn all
the ratings.
The upgrade reflects S-Tech's improved credit profile, as
operating EBITDAR and funds from operations (FFO) have turned
positive with a recovery in profitability since 2010. As of end-
2010, FFO interest coverage exceeded 5x compared with -0.9x at
end-2009. Financial leverage (net adjusted debt/EBITDAR) was
around 12x (end-2009: -12.5x due to negative EBITDAR).
S-Tech continued to generate negative free cash flows with
significant capex for expansion of production capability. The
company's liquidity was acceptable as of end-2010, but for
future funding it may need to partly rely on support from its
shareholders, who injected cash into the company in three of the
past four years.
The ratings also reflects S-Tech's much smaller operating scale
than vertically-integrated global peers, its high exposure to
volatile feedstock prices as it lacks in-house supply of raw
materials, as well as its concentrated customer base, with its
top five customers accounting for nearly half of its revenue in
2010.
The Stable Outlook reflects Fitch's view that no material changes
in its operating scale, profit margin, FCF and leverage are
likely over the next 12-24 months.
S-Tech is the only titanium alloy midstream producer in Taiwan.
TACHAN SECURITIES: Fitch Affirms Issue Default Rating at 'BB'
-------------------------------------------------------------
Fitch Ratings has affirmed Tachan Securities Co., Ltd's ratings
at Long-Term Issuer Default (IDR) 'BB' with Stable Outlook.
The agency has also affirmed Tachan's Individual Rating at 'D',
Support Rating at '5' and Support Rating Floor at 'No Floor' and
simultaneously withdrawn them. The ratings were withdrawn as
they are no longer considered by Fitch to be relevant to the
agency's ratings coverage.
Tachan's ratings reflect its strong core capitalization and sound
liquidity. It also considers the company's small franchise and
concentrated business profile in proprietary trading, which is
highly susceptible to volatile domestic stock market.
The Stable Outlook underlies Fitch's expectation that the company
will maintain solid capitalization and liquidity. Any
substantial trading losses or a sharp increase in its risk
appetite leading to much weakened capital may put downward
pressure on Tachan's ratings. Upside potential to the ratings is
limited given there is unlikely to be significant improvement in
revenue diversification and its brokerage franchise over the
short- to medium- term.
Tachan posted an unaudited annualised return on equity of -3.8%
for H111 (2010: 6.6%) mainly due weak proprietary trading, which
more than offset the modest profits generated in its brokerage
business. Tachan's risk appetite remained moderate. It has
trimmed down its investment portfolio to lower its risk exposure
amid heightened market volatility. Tachan's liquidity profile
(current assets/current liabilities) remained strong at 252% at
end-H111 (end-2010: 279%). The company is well-capitalised. At
end-H111, its capital adequacy ratio was reportedly 919%,
substantially higher than the regulatory requirement of 150%.
Tachan, established in 1988, is a small securities firm in
Taiwan, with a national brokerage market share of 0.13% at end-
H111. Marlon Chu, the founder, and its investment associates,
own over 80% of the company.
Tachan's rating actions:
-- Long-Term IDR affirmed at 'BB'; Outlook Stable
-- Short-term IDR affirmed at 'B'
-- National Long-Term affirmed at 'BBB+(twn)'; Outlook Stable
-- National Short-Term affirmed at 'F2(twn)'.
-- Individual Rating affirmed at 'D'; withdrawn
-- Support Rating affirmed at '5'; withdrawn
-- Support Rating Floor affirmed at 'No Floor'; withdrawn
===============
X X X X X X X X
===============
* Squire Sanders Expands Asia Pacific Presence
----------------------------------------------
Squire Sanders has announced a combination with the Western
Australia partnership that has operated as a member of the well-
known Australian Minter Ellison Group, to take effect by
October 2011. "This opportunity strengthens our presence in Asia
Pacific, the fastest growing region in the world, by establishing
a strong position in Western Australia," Squire Sanders said.
Perth provides a key hub for services to the area's growing
economies and the combination expands our capabilities and
developing practice in Asia. The Minter Ellison Perth partners
have strong domestic practices and an outstanding energy and
resources component, which complement and strengthen Squire
Sanders' existing practices and expertise. Clients will benefit
from enhanced capabilities in:
* Energy including upstream oil and gas, electricity
generation and LNG, allowing the combined firm to offer full
coverage of the entire product cycle
* Construction, Engineering and Infrastructure
* Mining and Minerals, primarily in hardrock mining and
upstream minerals including experience in South East Asia,
Africa and South America
* International Arbitration, not only in Western Australia but
in India, Hong Kong and Singapore
* Cross-border Real Estate including land acquisition,
infrastructure development and
* Project development
* Cross-Pacific and cross-Atlantic services
"This combination recognizes Western Australia as a portal to
serving the diverse and dynamic Asia Pacific region. Our combined
practice will allow us to better serve clients in Japan and China
as well as provide further opportunities and reach throughout
South East Asia and Africa."
"With this combination, Squire Sanders will have lawyers in 36
offices and 17 countries around the world including, since
January 2011, the nearly 500 lawyers from leading UK legal
practice Hammonds. With one of the strongest integrated global
platforms and our longstanding 'one-firm firm' philosophy, Squire
Sanders provides seamless legal counsel worldwide."
* BOND PRICING: For the Week Aug. 15 to Aug. 19, 2011
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
ADVANCE ENERGY 9.50 01/04/2015 AUD 1.07
AINSWORTH GAME 8.00 12/31/2011 AUD 1.25
AMITY OIL LTD 10.00 10/31/2013 AUD 2.02
AUSTRALIAN COMM 3.00 07/29/2049 AUD 5.00
BECTON PROP GR 9.50 06/30/2012 AUD 0.22
CHINA CENTURY 12.00 09/30/2012 AUD 0.88
DIVERSA LTD 11.00 09/30/2014 AUD 0.14
EXPORT FIN & INS 0.50 12/16/2019 NZD 67.15
EXPORT FIN & INS 0.50 06/15/2020 AUD 66.58
EXPORT FIN & INS 0.50 06/15/2020 NZD 65.12
FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.45
IMF AUSTRALIA 10.25 12/31/2014 AUD 1.69
NEW S WALES TREA 1.00 09/02/2019 AUD 72.39
NEW S WALES TREA 0.50 09/14/2022 AUD 59.94
NEW S WALES TREA 0.50 10/07/2022 AUD 59.46
NEW S WALES TREA 0.50 10/28/2022 AUD 59.22
NEW S WALES TREA 0.50 11/18/2022 AUD 59.07
NEW S WALES TREA 0.50 12/16/2022 AUD 58.52
NEW S WALES TREA 0.50 02/02/2023 AUD 58.18
NEW S WALES TREA 0.50 03/30/2023 AUD 57.62
NEXUS AUSTRALIA 3.60 08/31/2017 AUD 74.98
RESOLUTE MINING 12.00 12/31/2012 AUD 0.99
SUNCORP METWAY 6.75 09/23/2024 AUD 72.79
TREAS CORP VICT 0.50 08/25/2022 AUD 59.97
TREAS CORP VICT 0.50 11/12/2030 AUD 58.11
TREAS CORP VICT 0.50 11/12/2030 AUD 41.42
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 64.86
CQ YUFU ASSET 6.33 02/22/2018 CNY 67.98
YUXI DEVELOP INV 5.80 12/28/2016 CNY 61.00
HONG KONG
---------
RESPARCS FUNDING 8.00 12/29/2049 USD 35.27
INDIA
-----
PUNJAB INFRA DB 0.40 10/15/2024 INR 26.69
PUNJAB INFRA DB 0.40 10/15/2025 INR 24.25
PUNJAB INFRA DB 0.40 10/15/2026 INR 22.07
PUNJAB INFRA DB 0.40 10/15/2027 INR 20.15
PUNJAB INFRA DB 0.40 10/15/2028 INR 18.43
PUNJAB INFRA DB 0.40 10/15/2029 INR 16.89
PUNJAB INFRA DB 0.40 10/15/2030 INR 15.51
PUNJAB INFRA DB 0.40 10/15/2031 INR 14.27
PUNJAB INFRA DB 0.40 10/15/2032 INR 13.16
PUNJAB INFRA DB 0.40 10/15/2033 INR 12.16
VIDEOCON INDUS 6.75 12/16/2015 USD 74.25
JAPAN
-----
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 62.41
JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 61.66
SHINSEI BANK 5.62 12/29/2049 JPY 68.50
TAKEFUJI CORP 9.20 04/15/2011 USD 5.25
TOKYO ELEC POWER 1.39 05/28/2020 JPY 74.04
TOKYO ELEC POWER 1.31 06/24/2020 JPY 74.70
TOKYO ELEC POWER 1.22 07/29/2020 JPY 73.73
TOKYO ELEC POWER 1.55 09/08/2020 JPY 72.51
TOKYO ELEC POWER 2.34 09/29/2028 JPY 73.38
TOKYO ELEC POWER 2.40 11/28/2028 JPY 73.82
TOKYO ELEC POWER 2.20 02/27/2029 JPY 70.65
TOKYO ELEC POWER 2.11 12/10/2019 JPY 70.15
TOKYO ELEC POWER 1.95 07/27/2030 JPY 68.90
TOKYO ELEC POWER 2.36 05/28/2040 JPY 64.80
MALAYSIA
--------
ADVANCED SYNERY 2.00 01/26/2018 MYR 0.09
ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.46
ASTRAL SUPREME 3.00 08/0/2021 MYR 0.08
CRESENDO CORP B 3.75 01/11/2016 MYR 1.26
DUTALAND BHD 6.00 04/11/2013 MYR 0.77
DUTALAND BHD 6.00 04/11/2013 MYR 0.35
EASTERN & ORIENT 8.00 07/25/2011 MYR 1.46
ENCORP BHD 6.00 02/17/2016 MYR 0.86
KUMPULAN JETSON 5.00 11/27/2012 MYR 0.82
LION DIVERSIFIED 4.00 12/17/2013 MYR 0.62
MALTON BHD 6.00 06/30/2018 MYR 0.78
MITHRIL BHD 3.00 04/05/2012 MYR 0.43
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.23
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.41
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.27
PANTECH GROUP 7.00 12/21/2017 MYR 0.09
PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.52
REDTONE INTL 2.75 03/04/2020 MYR 0.06
RUBBEREX CORP 4.00 08/14/2012 MYR 0.63
SCOMI ENGINEERING 4.00 03/19/2013 MYR 0.73
SCOMI GROUP 4.00 12/14/2012 MYR 0.07
TRADEWINDS CORP 2.00 02/26/2016 MYR 0.90
TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.60
TRC SYNERGY 5.00 01/20/2012 MYR 1.46
WAH SEONG CORP 3.00 05/21/2012 MYR 2.31
WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.55
YTL CEMENT BHD 5.00 11/10/2015 MYR 2.32
NEW ZEALAND
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ALLIED FARMERS 9.60 11/15/2011 NZD 30.80
DORCHESTER PACIF 5.00 06/30/2013 NZD 65.40
GENESIS POWER 8.50 07/15/2041 NZD 8.15
INFRATIL LTD 8.50 09/15/2013 NZD 9.50
INFRATIL LTD 8.50 11/15/2015 NZD 9.20
INFRATIL LTD 4.97 12/29/2049 NZD 59.00
KIWI INCOME PROP 8.95 12/20/2014 NZD 1.25
NEW ZEALAND POST 7.50 11/15/2039 NZD 60.46
NZF GROUP 6.00 03/15/2016 NZD 23.20
SKY NETWORK TV 4.01 10/16/2016 NZD 7.78
TOWER CAPITAL 8.50 04/15/2014 NZD 1.02
TRUSTPOWER LTD 8.50 09/15/2012 NZD 6.10
TRUSTPOWER LTD 8.50 03/15/2014 NZD 6.85
UNI OF CANTERBUR 7.25 12/15/2019 NZD 1.01
SINGAPORE
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BLUE OCEAN 11.00 06/28/2012 USD 41.75
CAPITAMALLS ASIA 1.00 01/21/2012 SGD 0.97
CAPITAMALLS ASIA 2.15 01/21/2014 SGD 0.99
F&N TREASURY PTE 2.48 03/28/2016 SGD 0.99
F&N TREASURY PTE 3.15 03/28/2018 SGD 1.00
NEXUS 1 PTE LTD 10.50 03/07/2012 USD 1.02
SENGKANG MALL 4.00 11/20/2012 SGD 0.10
SENGKANG MALL 8.00 11/20/2012 SGD 0.05
UNITED ENG LTD 1.00 03/03/2014 SGD 1.02
WBL CORPORATION 2.50 06/10/2014 SGD 1.20
SOUTH KOREA
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GYEONGGI MUTUAL 8.00 01/22/2016 KRW 59.44
JEIL MUTUAL BK 8.50 01/22/2015 KRW 69.70
JINHEUNG MUTUAL 8.50 10/17/2014 KRW 60.13
KOREA MUTUAL SAV 8.00 09/22/2012 KRW 61.11
SRI LANKA
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SRI LANKA GOVT 5.35 03/01/2026 LKR 69.65
THAILAND
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THAILAND GOVT 0.75 01/04/2022 THB 73.68
*********
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 ***