/raid1/www/Hosts/bankrupt/TCRAP_Public/110831.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
Wednesday, August 31, 2011, Vol. 14, No. 172
Headlines
A U S T R A L I A
TIGER AIRWAYS: Appoints Chin as New CEO After Flight Ban
C H I N A
CHINA DU KANG: Incurs US$260,000 Net Loss in Second Quarter
CHINA IVY: Posts US$668,400 Net Loss in Q2 Ended June 30
CHINA SCE: Moody's Changes Rating Outlook to Stable from Positive
LDK SOLAR: Moody's Withdraws 'B1' Corporate Family Rating
NEXTMART INC: Incurs US$47,000 Second Quarter Net Loss
SHENGDATECH INC: Court Approves Michael Kang as CRO
SINO-FOREST CORP: Allen Chan Steps Down as CEO & Chairman
SOLAR ENERTECH: Posts US$1.3 Million Net Loss in Q3 Ended June 30
WEYERHAEUSER CO: Fitch Affirms 'BB+' Issuer Default Rating
H O N G K O N G
HONG KONG DRAPERS: Chan Man Hung David Steps Down as Liquidator
HUTCHISON ENTREPRENEUR: Ying and Chan Step Down as Liquidators
HUTCHISON INFORMATION: Ying and Chan Step Down as Liquidators
HUTCHISON INSTRUMENT: Ying and Chan Step Down as Liquidators
INTERTECHNIGUE HONG KONG: Jen Wai Yee Steps Down as Liquidator
LAUREL INVESTMENT: Creditors' Meeting Set for Sept. 9
MALIBAY COMPANY: Members' Final Meeting Set for Sept. 27
MANAGEMENT INVESTMENT: Annual Meetings Set for Sept. 16
MEI WAI: Members' Final General Meeting Set for Sept. 23
MING ARTS: Creditors' Proofs of Debt Due Sept. 26
MONELINK DEVELOPMENT: Members' Final Meeting Set for Sept. 30
NATURAL POLYMER: Members' Final Meeting Set for Sept. 28
RAAS VIETNAM: Seng and Yee Step Down as Liquidators
RIKEN ELECTRIC: Creditors' Proofs of Debt Due Sept. 26
SWEET ESSENTIALS: Middleton and Chan Step Down as Liquidators
I N D I A
A.V. VALVES: CRISIL Rates INR30MM Cash Credit at 'CRISIL D'
AAKAF STEEL: CRISIL Assigns 'CRISIL B+' Rating to INR120MM Loan
AAMODA PUBLICATIONS: CRISIL Puts CRISIL D Rating on INR96.5MM Loan
AMIN EXPLOSIVES: CRISIL Rates INR64.5 Million Loan at 'CRISIL BB-'
ANNAPURNA EARCANAL: CRISIL Reaffirms 'CRISIL BB+' Term Loan Rating
BHAWANI FERROUS: CRISIL Suspends 'CRISIL B+' INR42.5MM Loan Rating
CHANDRI PAPER: ICRA Assigns '[ICRA]BB' Rating to INR7cr Loan
CITY BEAUTIFUL: CRISIL Suspends 'CRISIL D' INR135.6MM Loan Rating
DEBBAS PRIME: ICRA Withdraws 'LBB+' Rating on INR5cr LT Loan
DHARMAPURI ROLLER: CRISIL Ups Rating on INR36.7MM Loan to 'BB+'
HI-MAC CASTINGS: ICRA Reaffirms '[ICRA]B' Rating on INR2.5cr Loan
MAHINDRA SATYAM: Court Dismisses Raju's Bail Petitions
MEP COTTON: ICRA Assigns '[ICRA]D' Rating to INR55.5cr Loan
PENINSULA PROJECTS: ICRA Reaffirms [ICRA]BB Rating to INR17cr Loan
SHREE RAM: CRISIL Assigns 'CRISIL B+' Rating to INR7MM Term Loan
RANJIT SINGH: CRISIL Reassigns 'CRISIL BB+' INR600MM Loan Rating
SOORYA HEIIGHCON: CRISIL Places 'CRISIL B+' Rating on INR40MM Loan
SWATANTRA LAND: CRISIL Suspends 'CRISIL B-' INR250MM Loan Rating
TRADECOM INTERNATIONAL: ICRA Rates INR1.03cr LT Loan at 'LBB'
I N D O N E S I A
ADARO INDONESIA: Moody's Says No Ratings Impact from Acquisition
GAJAH TUNGGAL: Moody's Confirms 'B3' Corporate Family Rating
J A P A N
ORIX-NRL TRUST: Moody's Cuts Rating on Class E Notes to 'Caa3'
M A L A Y S I A
STAMFORD COLLEGE: Posts MYR1.08 Mil. Net Loss in Qtr Ended June 30
SYARIKAT KAYU: Swings to MYR607,000 Net Loss in Qtr Ended June 30
VASTALUX ENERGY: RHB Bank Serves Writ of Summons
N E W Z E A L A N D
MERCER GROUP: Shuts Brisbane Factory, Taps New CEO after Losses
NATIONAL FINANCE: Trial Delayed as Director Seeks to Legal Aid
SOUTH CANTERBURY: Skyline Buys Glacier Helicopter Business
STRUCTURED FINANCE: Defaults on Moratorium Deal
S I N G A P O R E
CLOUD 9: Creditors' Proofs of Debt Due Sept. 9
DESIGNPHASE PRIVATE: Court Enters Wind-Up Order
ESM PTE: Creditors' Proofs of Debt Due Sept. 20
RITZ COSMO: Court to Hear Wind-Up Petition on Sept. 9
SHOEI CHEMICAL: Creditors' Proofs of Debt Due Sept. 26
V I E T N A M
DOT VN: Vietnamese IDNs Registrations Exceed 320,000
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
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A U S T R A L I A
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TIGER AIRWAYS: Appoints Chin as New CEO After Flight Ban
--------------------------------------------------------
ChannelNews Asia reports that Tiger Airways has appointed Chin Yau
Seng as its new CEO effective as of November 1, 2011.
ChannelNews Asia says Mr. Chin is the former CEO of SilkAir and
currently serves as Tiger's acting CEO. He succeeds Tony Davis
who is leaving the company to "pursue other career opportunities."
Mr. Davis is currently seconded to Tiger Airways Australia as its
CEO after Australian regulators slapped a suspension on the
airline's domestic services over safety concerns last month,
according to ChannelNews Asia.
ChannelNews Asia relates that Tiger Airways said it is in the
process of appointing a replacement for Mr. Davis as CEO of Tiger
Airways Australia, and an announcement regarding this appointment
will be made in due course.
Mr. Davis will also cease to be an Executive Director of Tiger
Airways from November 1, ChannelNews Asia adds.
Australian Associated Press reported on August 4 that Tiger
Airways reportedly suffered operating losses of SGD12 million
during the six-week ban, which was only lifted on August 12.
According to AAP, the company said Tiger Australia posted an
operating loss of SGD23.2 million (AUD18.05 million) in the three
months to June 30, 2011, more than twice as large as the
SGD10.6 million (AUD8.24 million) loss in the prior corresponding
period.
"With the loss incurred in the first quarter, and the suspension
of all domestic services in Australia for more than a month, we
expect Tiger Airways Australia to report a net loss for this
financial year," the company's first quarter accounts noted, AAP
relates.
Tiger has not made a profit in Australia since starting operations
in the country in November 2007, AAP notes.
Based in Melbourne, Victoria, Tiger Airways Australia is an ultra-
low cost airline. It is a subsidiary of Tiger Airways Holdings, a
Singapore-based company. As of April 2011, the Tiger Airways
Australia fleet consists of 11 Airbus A320.
=========
C H I N A
=========
CHINA DU KANG: Incurs US$260,000 Net Loss in Second Quarter
-----------------------------------------------------------
China Du Kang Co. Ltd., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss of US$260,112 on US$501,577 of gross revenue for the
three months ended June 30, 2011, compared with a net loss of
US$388,475 on US$440,975 of gross revenue for the same period a
year ago.
The Company also reported a net loss of US$460,540 on
US$1.21 million of gross revenue for the six months ended June 30,
2011, compared with a net loss of US$657,625 on US$931,217 of
gross revenue for the same period during the prior year.
The Company's balance sheet at June 30, 2011, showed
US$15.17 million in total assets, US$22.50 million in total
liabilities, and a US$7.33 million total shareholders' deficit.
Keith K. Zhen, CPA, in Brooklyn, New York, expressed substantial
doubt about the company's ability to continue as a going concern,
following the release of the 2010 results. Mr. Zhen noted that
the Company has incurred an operating loss for each of the years
in the two-year period ended Dec. 31, 2010, and as of Dec. 31,
2010, has a working capital deficiency and a shareholders'
deficiency.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/3YJbCp
About China Du Kang
China Du Kang Co., Ltd., was incorporated as U.S. Power Systems,
Inc., in the State of Nevada on Jan. 16, 1987. The Company is
principally engaged in the business of production and distribution
of distilled spirit with the brand name of "Baishui Dukang". The
Company also licenses the brand name to other liquor manufactures
and liquor stores.
CHINA IVY: Posts US$668,400 Net Loss in Q2 Ended June 30
--------------------------------------------------------
China Ivy School, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of US$668,410 on US$1.6 million of revenue
for the three months ended June 30, 2011, compared with net income
of $78,050 on US$1.6 million of revenue for the same period last
year.
The Company reported a net loss of US$1.6 million on
US$3.2 million of revenue for the six months ended June 30, 2011,
compared with a net loss of US$274,761 on US$3.2 million of
revenue for the same period of 2010.
The Company's balance sheet at June 30, 2011, showed
US$16.2 million in total assets, US$16.5 million in total
liabilities, all current, and a stockholders' deficit of
US$319,337.
As reported in the TCR on April 8, 2011, Michael T. Studer CPA
P.C., in Freeport, New York, expressed substantial doubt about
China Ivy School's ability to continue as a going concern,
following the Company's 2010 results. Mr. Studer noted that, as
of Dec. 31, 2010, and 2009, the Company had a working capital
deficit of US$12,255,303 and US$11,038,871, respectively. "The
Company also had an accumulated deficit of US$5,949,928 as of
Dec.31, 2010."
A copy of the Form 10-Q is available at http://is.gd/mtxNhd
Based in Jiangsu Province, China, China Ivy School, Inc., operates
an educational facility under the name "Blue Tassel School" which
provides a comprehensive curriculum required by the government of
the People's Republic of China, supplemented by a broad range of
elective courses which may be chosen from by the school's
students.
CHINA SCE: Moody's Changes Rating Outlook to Stable from Positive
-----------------------------------------------------------------
Moody's Investors Service has changed to stable from positive the
outlook on China SCE Property Holdings Limited's B1 corporate
family rating and B2 senior unsecured bond rating.
The revision in outlook will affect about USD313 million of the
company's rated debt securities.
"The rating action reflects Moody's view that a more challenging
macro environment in the next six to twelve months would hinder
the growth of China SCE and moderate the near-term rating upgrade
pressure," says Jonathan Lee, a Moody's Vice President and Senior
Analyst.
"Tightening regulatory measures, reduced bank lending and
heightened price competition has slowed down China SCE's growth
and curbed its developments outside of Fujian Province," he adds.
China SCE's total contract sales reached RMB 2.85 billion in
1H2011, of which 97% were generated from Quanzhou, Xiamen and
Zhangzhou, the three main cities in Fujian Province. Although most
of these cities are not the ones where current "purchase
restriction" is implemented, the possible expansion of restriction
list into other second-tier and third-tier cities will make it
more challenging for China SCE to achieve its planned sales.
"China SCE is pursuing wider geographic coverage beyond Fujian
Province, which will bring the benefits of geographic
diversification and reduced project concentration risk. However,
under the unfavorable macro environment, it will take longer time
than Moody's previously expected for the company to generate
reasonable revenue level from cities outside Fujian," says Lee.
The B1 rating continues to reflect China SCE's strong position in
home market, low cost land bank, recognized product quality, and
prudent financial management.
At the same time, the rating takes into account its geographic
concentration, short operating track record after its initial
public offering, and execution risks from its expansion plan.
China SCE's bond rating is notched down to B2 due to the
subordination risk. The secured and subsidiary debt-to-total asset
was around 20% as of 30 June 2011. This ratio will stay above 15%-
20% over next two to three years.
The stable outlook reflects Moody's expectation that the company
will maintain good discipline in financial management and land
acquisition strategy. At the same time, it will have adequate
liquidity to support project development and debt repayment in the
next 12 to 18 months.
Upward rating pressure will be limited in the near term. However,
an upgrade is possibility in the medium term if it 1) consistently
achieves planned sales, 2) demonstrates a track record of good
financial discipline and prudent business strategy, 3) builds its
property sales track record beyond Fujian, and 4) broadens its
banking relationships.
In terms of credit metrics, if EBITDA/interest coverage is
consistently above 5x and adjusted leverage below 40%-45%, then an
upgrade is possible.
The ratings could be under pressure for a downgrade if China SCE:
1) experiences a significant shortfall in sales, which lag Moody's
expectations, 2) suffers from a material decline in profit margin,
3) incurs impairment of its liquidity position, and/or 4)
materially increases its debt leverage position.
A downgrade could also be triggered by a substantial decline in
balance sheet cash, or if credit metrics deteriorate -- such that
EBITDA/interest fall below 3x and adjusted leverage is
consistently above 55%-60% - on a sustained basis.
The principal methodology used in rating China SCE was Moody's'
Rating Methodology on "Global Homebuilding Industry," published in
March 2009. Please see the Credit Policy page on www.moodys.com
for a copy of this methodology.
Founded in 1996, China SCE Property Holdings is a leading property
developer in the Fujian Province. It listed on the Hong Kong Stock
Exchange in February 2010. Its Chairman, Wong Chiu Yeung, holds
57.5% stake and is a majority shareholder of the company.
LDK SOLAR: Moody's Withdraws 'B1' Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service has withdrawn its B1 corporate family
rating and B2 senior unsecured bond rating on LDK Solar Co Ltd.
Ratings Rationale
Moody's Investors Service has withdrawn the corporate family
rating for its own business reasons. Also, the withdrawal of the
senior unsecured rating is in response to the company's decision
to cancel its proposed bond issuance.
LDK Solar is one of the world's leading PV manufacturers, with the
largest position in wafer production in 2010. Its plants in China
manufacture polysilicon, ingots, wafers, cells, and modules.
NEXTMART INC: Incurs US$47,000 Second Quarter Net Loss
------------------------------------------------------
NextMart, Inc., filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q reporting a net loss
of US$47,246 on US$0 of sales for the three months ended June 30,
2011, compared with a net loss of US$53,044 on US$0 of sales for
the same period during the prior year.
The Company also reported a net loss of US$315,256 on US$0 of
sales for the nine months ended June 30, 2011, compared with a net
loss of US$6.24 million on US$0 of sales for the same period a
year ago.
The Company's balance sheet at June 30, 2011, showed US$1.39
million in total assets, US$3.16 million in total liabilities, and
a $1.77 million total stockholders' deficit.
As reported in the Troubled Company Reporter on Jan. 19, 2011,
Bernstein & Pinchuk LLP, in New York, expressed substantial doubt
about NextMart, Inc.'s ability to continue as a going concern,
following the Company's results for the fiscal year ended
Sept. 30, 2010. The independent auditors noted that the Company
has incurred significant losses from operations for the two years
ended Sept. 30, 2010, and has a working capital deficiency.
Bankruptcy Warning
The Company said it cannot provide assurances that it will be
successful in its efforts to enhance its liquidity. If the
Company is unable to raise sufficient funds to meet its cash
requirements, it may be required to curtail, suspend, or
discontinue its current or proposed operations. The Company's
inability to raise additional funds may forced the Company to
restructure, file for bankruptcy, sell assets or cease operations,
any of which could adversely impact its business and business
strategy, and the value of its capital stock. Due to the current
price of the Company's common stock, any common stock based
financing will create significant dilution to the then existing
stockholders. In addition, in order to conserve capital and to
provide incentives for the Company's employees and service
providers, it is conceivable that the Company may issue stock for
services in the future which also may create significant dilution
to existing stockholders.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/pdBTTt
About NextMart Inc.
Beijing, PRC-based NextMart, Inc., was originally incorporated
under the laws of Minnesota in 1972 and was previously known as SE
Global Equity. In May 2007, the Company reincorporated into the
State of Delaware and changed its name to NextMart, Inc.
NextMart's planned business operations for 2011 will consist of
(1) the sale of marketing solutions through art events and art
media marketing channels, and (2) the design and marketing of art-
themed products lines for existing luxury and high-end goods and
services, and art themed real estate developments.
SHENGDATECH INC: Court Approves Michael Kang as CRO
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Nevada has approved
ShengdaTech Inc.'s application to employ Michael Kang of Alvarez &
Marsal North America (Contact: Michael Kang) as chief
restructuring officer for an hourly rate of US$675 for Mr. Kang,
and the following hourly rates for other A&M employees: managing
director at US$650 to US$850, director at US$450 to US$650,
associate/consultant at US$350 to US$450, and analyst at US$250 to
US$350.
About ShengdaTech
Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano
precipitated calcium carbonate for the tire industry. ShengdaTech
converts limestone into nano-precipitated calcium carbonate (NPCC)
using its proprietary and patent-protected technology. NPCC
products are increasingly used in tires, paper, paints, building
materials, and other chemical products. In addition to its broad
customer base in China, the Company currently exports to
Singapore, Thailand, South Korea, Malaysia, India, Latvia and
Italy.
ShengdaTech Inc. sought Chapter 11 bankruptcy protection from
creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in
Reno, Nevada, in the United States.
The Shanghai-China based company said in its bankruptcy filing it
would fire all of its officers and restructure to try to recover
from an accounting scandal.
The Company disclosed US$295.4 million in assets and
US$180.9 million in debt as of Sept. 30, 2011.
The Company's legal representative in its Chapter 11 case is
Greenberg Traurig, LLP. The Board of Directors Special Committee's
legal representative is Skadden, Arps, Slate, Meagher & Flom LLP.
SINO-FOREST CORP: Allen Chan Steps Down as CEO & Chairman
---------------------------------------------------------
Christopher Donville and Erik Larson at Bloomberg News report that
Sino-Forest Corp.'s Chief Executive Officer and Chairman Allen
Chan resigned two days after a Canadian securities regulator said
the company may have exaggerated timber holdings, the same charge
made by short seller Carson Block in June.
Bloomberg relates that Sino-Forest said in a statement on Monday
Mr. Chan "voluntarily resigned" from both positions. Mr. Chan was
replaced by Executive Director Judson Martin as CEO and William
Ardell as chairman, Bloomberg discloses. Mr. Ardell is leading
Sino-Forest's internal investigation of Mr. Block's allegations.
According to Bloomberg, the Ontario Securities Commission halted
trading in Sino-Forest's shares on Aug. 26 and said the company
may have misrepresented revenue. Bloomberg notes that Sino-Forest
has plunged 67% in Toronto since Mr. Block's Muddy Waters LLC
published a report June 2 alleging that the company was a "fraud."
"The allegations made in the OSC's temporary order, while
unproven, are of a serious nature," Bloomberg quoted Sino-Forest
in the statement. "The company's business is complex, the scope of
the review is significant and there are enormous amounts of data
that have been marshaled and are under review."
Bloomberg, citing regulatory filing, adds that Mr. Chan also
resigned as chairman of Sino-Forest's Hong Kong unit Greenheart
Group Ltd. Greenheart, halted from trading ahead of the
announcement, remained suspended at the close.
Standard & Poor's Ratings Services said Tuesday it cut
Sino- Forest to CCC- from B and then withdrew its ratings.
Moody's Investors Service downgraded it to Caa1 from B1,
according to Bloomberg.
About Sino-Forest
Sino-Forest Corporation (TSE:TRE) -- http://www.sinoforest.com--
is a commercial forest plantation operator in the People Republic
of China (PRC). As of Dec. 31, 2009, Sino-Forest had
approximately 512,700 hectares of forest plantations located
primarily in southern and eastern China.
SOLAR ENERTECH: Posts US$1.3 Million Net Loss in Q3 Ended June 30
-----------------------------------------------------------------
Solar Enertech Corp. filed its quarterly report on Form 10-Q,
reporting a net loss of US$1.3 million on US$12.2 million of sales
for the three months ended June 30, 2011, compared with a net loss
of US$658,000 on US$16.4 million of sales for the three months
ended June 30, 2010.
The Company reported net income of US$530,000 on US$38.4 million
of sales for the nine months ended June 30, 2011, compared with a
net loss of US$23.7 million on US$51.8 million of sales for the
nine months ended June 30, 2010.
The Company's balance sheet at June 30, 2011, showed US$26.3
million in total assets, US$15.5 million in total liabilities, all
current, and stockholders' equity of US$10.8 million.
As reported in the Troubled Company Reporter on Dec. 22, 2010,
Ernst & Young Hua Ming, in Shanghai, China, expressed substantial
doubt about Solar Enertech's ability to continue as a going
concern, following the Company's results for the fiscal year ended
Sept. 30, 2010. The independent auditors noted of the Company's
recurring losses from operations.
A copy of the Form 10-Q is available at http://is.gd/Tg7dSK
About Solar EnerTech
Solar EnerTech Corp. (OTC QB: SOEN) --
http://www.solarE-power.com/-- is a solar product manufacturer
with its headquarters based in Mountain View, California, and with
low-cost operations located in Shanghai, China. The Company's
principal products are monocrystalline silicon and polycrystalline
silicon solar cells and solar modules. Solar cells convert
sunlight to electricity through the photovoltaic effect, with
multiple solar cells electrically interconnected and packaged into
solar modules to form the building blocks for solar power
generating systems. The Company primarily sells solar modules to
solar panel installers who incorporate the Company's modules into
their power generating systems that are sold to end-customers
located in Europe, Australia, North America and China.
The Company has established its manufacturing base in Shanghai,
China to capitalize on the cost advantages offered in
manufacturing of solar power products. In its 67,107-square-foot
manufacturing facility the Company operates two 25 MW solar cell
production lines and a 50 MW solar module production facility.
WEYERHAEUSER CO: Fitch Affirms 'BB+' Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has affirmed the 'BB+' issuer default rating (IDR)
and the 'BB+' senior unsecured debt rating of Weyerhaeuser
Company. The Rating Outlook has been revised to Stable from
Negative. The ratings are based on the prospective earnings of
Weyerhaeuser's business portfolio and the company's liquidity
profile, including its non-core timberlands.
Weyerhaeuser's problems, stemming from a depressed homebuilding
market, continue to haunt the results of both its Wood Products
and Real Estate businesses. Both are directly affected by the
malaise in residential construction and the repair and remodeling
markets which refuse to show much economic recovery. Wood
Products is slightly EBITDA negative through the first six months
of 2011 and trails behind 2010. Weyerhaeuser's Real Estate
business is slightly EBITDA positive but also trails last year.
The prognosis for these businesses could be challenged by a
softening economy in the back half of 2011.
Supporting the earnings of the company has been a robust pulp
business and the REIT's core timberland operations. The former is
40% ahead in EBITDA in year-over-year comparisons through the
first half of 2011. The latter is 5% ahead and is benefiting from
an increased demand for logs from Asia.
Prospectively, timberland and pulp earnings could soften. Market
pulp prices have been weakening and Chinese demand for pulp
appears to have softened somewhat; however, the demand for fluff
pulp (used in diapers and incontinence products and half of
Weyerhaeuser's pulp business) seems to be fairly solid.
Timberland earnings could also weaken if sawmills' demand for logs
waxes with lumber due to a further respite in construction
activity.
Support for the ratings also comes from Weyerhaeuser's liquidity
in the form of its non-core timberland portfolio of some 485,000
acres. With an estimated US$1.0 billion plus value, these should
be more than sufficient to compensate for any negative free cash
flow from deteriorating business conditions due to another
recession. Weyerhaeuser also has available a US$1.0 billion
undrawn revolving credit facility which matures in 2015. The
company has reported compliance with the facility's minimum
shareholders' equity and total debt to total capital requirements.
Fitch expects that Weyerhaeuser could earn US$850 million to
US$950 million in EBITDA this year exiting the year with a
debt/EBITDA of 5.0 times (x). Working capital and curtailed
capital expenditures could operate to produce a free cash flow of
near US$300 million after dividends of US$0.60 per share.
Demands on free cash flow are light. Weyerhaeuser's debt calendar
is not stressful with US$200 million coming due in 2012 and US$600
million coming due over the next five years. This should be
manageable even in poor business conditions.
Ratings drivers continue to be cash flow from Weyerhaeuser's Wood
Products' operations and the homebuilding business. How
Weyerhaeuser spends its cash, i.e. shareholder returns, and how
the company manages its liquidity are also key ratings
determinants.
================
H O N G K O N G
================
HONG KONG DRAPERS: Chan Man Hung David Steps Down as Liquidator
---------------------------------------------------------------
Chan Man Hung David stepped down as liquidator of The Hong Kong
Drapers Association Limited on Aug. 26, 2011.
HUTCHISON ENTREPRENEUR: Ying and Chan Step Down as Liquidators
--------------------------------------------------------------
Ying Hing Chiu and Chan Mi Har stepped down as liquidators of
Hutchison Entrepreneur (Holdings) Limited on Aug. 17, 2011.
HUTCHISON INFORMATION: Ying and Chan Step Down as Liquidators
-------------------------------------------------------------
Ying Hing Chiu and Chan Mi Har stepped down as liquidators of
Hutchison Information Technology Limited on Aug. 17, 2011.
HUTCHISON INSTRUMENT: Ying and Chan Step Down as Liquidators
------------------------------------------------------------
Ying Hing Chiu and Chan Mi Har stepped down as liquidators of
Hutchison Instrument & Equipment Company Limited on Aug. 17, 2011.
INTERTECHNIGUE HONG KONG: Jen Wai Yee Steps Down as Liquidator
--------------------------------------------------------------
Jen Wai Yee stepped down as liquidator of Intertechnigue Hong Kong
Limited on Aug. 18, 2011.
LAUREL INVESTMENT: Creditors' Meeting Set for Sept. 9
-----------------------------------------------------
Creditors of Laurel Investment Limited will hold their meeting on
Sept. 9, 2011, at 5:00 p.m., for the purposes provided for in
Sections 241, 242, 243, 244, 251 and 283 of the Companies
Ordinance.
The meeting will be held at 16th Floor, Wing On House, at 71 Des
Voeux Road Central, in Hong Kong.
MALIBAY COMPANY: Members' Final Meeting Set for Sept. 27
--------------------------------------------------------
Members of Malibay Company Limited will hold their final general
meeting on Sept. 27, 2011, at 10:30 a.m., at Room 1021 Sun Hung
Kai Centre, at 30 Harbour Road, in Wanchai, Hong Kong.
At the meeting, Chan Wai Hei, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
MANAGEMENT INVESTMENT: Annual Meetings Set for Sept. 16
-------------------------------------------------------
Creditors and members of Management Investment & Technology
Company Limited will hold their annual meetings on Sept. 16, 2011,
at 10:00 a.m., and 10:30 a.m., respectively at Room 203 of Duke of
Windsor Social Service Building located at 15 Hennessy Road,
Wanchai, in Hong Kong.
At the meeting, Yuen Tsz Chun Frank, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
MEI WAI: Members' Final General Meeting Set for Sept. 23
--------------------------------------------------------
Members of Mei Wai Mansion Landlords Association Limited will hold
their final general meeting on Sept. 23, 2011, at 10:00 a.m., at
Room 1701-2, 17/F, ING Tower, 308 Des Voeux Road Central, in Hong
Kong.
At the meeting, Chiu Pui Fong, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
MING ARTS: Creditors' Proofs of Debt Due Sept. 26
-------------------------------------------------
Creditors of Ming Arts Dance Studio Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 26, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Aug. 9, 2011.
The company's liquidator is:
Ho Chiu Lung Michael
Room 603, Alliance Building
130-136 Connaught Road
Central, Hong Kong
MONELINK DEVELOPMENT: Members' Final Meeting Set for Sept. 30
-------------------------------------------------------------
Members of Monelink Development Limited will hold their final
general meeting on Sept. 30, 2011, at 10:00 a.m., at Room A, 8/F,
Yardley Commercial Building, at 3 Connaught Road West, in
Hong Kong.
At the meeting, Mak Kin Hung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
NATURAL POLYMER: Members' Final Meeting Set for Sept. 28
--------------------------------------------------------
Members of Natural Polymer International (HK) Limited will hold
their final general meeting on Sept. 28, 2011, at 10:00 a.m., at
22/F., Hang Lung Centre, at 2-20 Paterson Street, Causeway Bay,
in Hong Kong.
At the meeting, Cheng James Yi-Ming, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
RAAS VIETNAM: Seng and Yee Step Down as Liquidators
---------------------------------------------------
Natalia Seng Sze Ka Mee and Cynthia Wong Tak Yee stepped down as
liquidators of Raas Vietnam Limited on Aug. 17, 2011.
RIKEN ELECTRIC: Creditors' Proofs of Debt Due Sept. 26
------------------------------------------------------
Creditors of Riken Electric Wire Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 26, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Aug. 26, 2011.
The company's liquidator is:
Lau Wai Yung Alice
Room 2402, 24/F
101 King's Road
Fortress Hill
Hong Kong
SWEET ESSENTIALS: Middleton and Chan Step Down as Liquidators
-------------------------------------------------------------
Edward Simon Middleton and Chan Mei Lan stepped down as
liquidators of Sweet Essentials Limited on Aug. 19, 2011.
=========
I N D I A
=========
A.V. VALVES: CRISIL Rates INR30MM Cash Credit at 'CRISIL D'
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' rating to the bank
loan facilities of A.V. Valves Ltd.
Facilities Ratings
---------- -------
INR30.0 Million Cash Credit CRISIL D (Assigned)
INR2.90 Million Term Loan CRISIL D (Assigned)
INR6.0 Million Packing Credit CRISIL D (Assigned)
INR6.0 Mil. Foreign Bill Purchase CRISIL D (Assigned)
INR22.5 Million Bank Guarantee CRISIL D (Assigned)
The rating reflects instances of delays by AVL in servicing its
debt obligations; the delays are because of the company's weak
liquidity. The working capital limits were also overdrawn for
greater than 30 days during March to May 2011.
AVL also has a small scale of operations in a fragmented industry
and exposure to risks related to volatility in raw material
prices, and working-capital-intensive operations. These rating
weaknesses are partially offset by the company's moderate capital
structure and debt protection metrics and the extensive experience
of its promoters in the valve industry.
About A.V. Valves
AVL was set up as a proprietorship firm called A.V. engineering
Works in 1971. In 1974, the firm was reconstituted as a
partnership firm with Mr. Satish Kumar Jain, Mr. Subhash Kumar
Jain and Mrs. Kamlavanti Jain as partners. In 1987, the firm was
reconstituted as a private limited company and in 1993, the
company was reconstituted as a closely held public limited
company. The company manufactures industrial valves, which are
used in chemical plants, fertiliser plants, refineries, power
houses, water treatment plants, irrigation pipelines, and gas
pipelines. It has a manufacturing facility at Agra, Uttar Pradesh
to manufacture 1450 tonnes per annum (tpa) of valves on a single
shift basis.
AVL is expected to report a profit after tax (PAT) of INR4.3
million on net sales of INR147.1 million for 2010-11 (refers to
financial year, April 1 to March 31) against a PAT of INR4.0
million on net sales of INR118.1 million for 2009-10.
AAKAF STEEL: CRISIL Assigns 'CRISIL B+' Rating to INR120MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Aakaf Steel Pvt Ltd.
Facilities Ratings
---------- -------
INR120.0 Million Cash Credit CRISIL B+/Stable (Assigned)
INR30.0 Million Letter of Credit CRISIL A4 (Assigned)
INR50.0 Million Proposed Short- CRISIL A4 (Assigned)
Term Bank Loan Facility
The ratings reflect Aakaf's weak financial risk profile, marked by
high total outside liabilities to tangible net worth (TOL/TNW)
ratio, weak debt protection metrics, and a small net worth, small
scale of operations with susceptibility to volatility in raw
material prices, and limited pricing flexibility. These rating
weaknesses are partially offset by the extensive experience of
Aakaf's promoters in the steel industry and the company's
diversified customer base.
Outlook: Stable
CRISIL believes that Aakaf will continue to benefit over the
medium term from its promoters' experience in the steel industry
and its established relationships with its customers. However, the
company's financial risk profile is expected to remain weak,
marked by and high TOL/TNW ratio, because of large working capital
requirements and weak debt protection measures. The outlook may be
revised to 'Positive' if Aakaf reports a better-than-expected
operating margin leading to improvement in its debt protection
metrics or its capital structure improves because of infusion of
substantial capital. Conversely, the outlook may be revised to
'Negative' if Aakaf's operating margin declines further or if the
company's financial risk profile deteriorates because of stretch
in working capital.
About Aakaf Steel
Incorporated in 2000, Aakaf trades in hot rolled plates, mild
steel plates, beams, channels, round bars, and square bars. It was
set up as a sole proprietorship named Aakaf Industrial Corporation
in 1992, and was reconstituted as private limited company in 2000
after it merged with its sister concern, Aakar Steels. The company
sells its products primarily in Ahmedabad (Gujarat).
Aakaf's profit after tax (PAT) is estimated at INR4 million on net
sales of INR795.60 million for 2010-11 (refers to financial year,
April 1 to March 31), against a reported PAT of INR2.22 million on
net sales of INR713.80 million for 2009-10.
AAMODA PUBLICATIONS: CRISIL Puts CRISIL D Rating on INR96.5MM Loan
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Aamoda Publications Pvt Ltd, part of the Aamoda
group.
Facilities Ratings
---------- -------
INR96.5 Million Term Loan CRISIL D (Assigned)
INR210 Million Cash Credit CRISIL D (Assigned)
INR23.5 Mil. Proposed Term Loan CRISIL D (Assigned)
INR90 Mil. Inland/Import Letter CRISIL D (Assigned)
of Credit
The ratings reflect instances of delay by the Aamoda group in
servicing its debt; the delays have been caused by the group's
weak liquidity.
Also, the Aamoda group's profit margins are susceptible to
volatility in newsprint prices and economic cycles. This rating
weakness is partially offset by the Aamoda group's moderate market
position and operating efficiencies aided by a strong management.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of APPL and its subsidiary, Aamoda
Broadcasting Company Pvt Ltd, together referred to as the Aamoda
group. The combined approach is because APPL holds a 72% stake in
ABCPL.
About the Group
Incorporated in August 2002 as a private limited company by Mr. V
Radha Krishna and Mrs. K Kanaka Durga, APPL publishes and prints
the Telugu daily newspaper, Andhra Jyothy, and Telugu weekly,
Navya.
ABCPL, incorporated in 2008, operates a round-the-clock, free-to-
air satellite Telugu news channel, ABN Andhra Jyothy. The news
channel commenced commercial operations on October 15, 2009.
The Aamoda group reported a net loss of INR55 million on net sales
of INR1556 million for 2009-10 (refers to financial year, April 1
to March 31), as against a profit after tax (PAT) of INR8 million
on net sales of INR1603 million for 2008-09.
On a standalone basis, APPL reported a PAT of INR28 million on net
sales of INR1544 million for 2009-10, as against a PAT of INR8
million on net sales of INR1603 million for 2008-09.
AMIN EXPLOSIVES: CRISIL Rates INR64.5 Million Loan at 'CRISIL BB-'
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Amin Explosives Pvt Ltd.
Facilities Ratings
---------- -------
INR64.5 Million Term Loan CRISIL BB-/Stable (Assigned)
INR40 Million Cash Credit CRISIL BB-/Stable (Assigned)
INR0.5 Million Proposed LT CRISIL BB-/Stable (Assigned)
Bank Loan Facility
INR5 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect the extensive experience of AEPL's promoters
in the industrial explosives industry. This rating strength is
partially offset by AEPL's weak financial risk profile, marked by
small net worth, high gearing, and average debt protection
metrics, small scale of operations in the fragmented explosives
industry.
Outlook: Stable
CRISIL believes that Amin Explosives Pvt Ltd (AEPL) will continue
to benefit from the extensive industry experience of its
promoters, over the medium term. The outlook may be revised to
'Positive' in case of better-than-expected ramp-up in operations
post completion of the ongoing capex, leading to better-than-
expected scale of operations and cash accruals. Conversely, the
outlook may be revised to 'Negative' if the company's financial
risk profile and liquidity come under pressure due to lower-than-
expected ramp-up in operations, leading to lower cash accruals, or
in case of any unfavourable regulatory changes.
About Amin Explosives
Incorporated in 2002, AEPL manufactures commercial explosives and
explosion-related accessories. The company was promoted by Mr.
Sohel Amin and his elder brother, Mr. Hamid Khan. The promoters
earlier traded in explosives, related accessories, and
transportation of explosives. To integrate backward into
manufacturing explosives, the promoters set up a plant near Nagpur
(Maharashtra). They also have other group companies/firms, which
mainly trade in and transport explosives.
During 2010-11(refers to financial year, April 1 to March 31),
AEPL undertook a large capex programme to increase its explosives
and detonator manufacturing capacity as well as to integrate
backward into manufacturing PETN (Penta-erythritol tetra-nitrate)
and aluminium-filled shells. The company is also setting up a
safety fuse manufacturing plant. The PETN plant has started
commercial production recently while the other plants are expected
to commence commercial during second half of 2011-12.
AEPL has reported an estimated profit after tax (PAT) of INR5.8
million on estimated net sales of INR246.5 million for 2010-11, as
against a PAT of INR5.1 million on net sales of INR174.2 million
for 2009-10.
ANNAPURNA EARCANAL: CRISIL Reaffirms 'CRISIL BB+' Term Loan Rating
------------------------------------------------------------------
CRISIL rating on the bank facilities of Annapurna Earcanal Ltd
continue to reflect the experience of AEL's promoters in the
roll-bond evaporator industry and its strong market position.
Facilities Ratings
---------- -------
INR10.20 Million Term Loan CRISIL BB+/Stable (Reaffirmed)
INR45.00 Million Cash Credit CRISIL BB+/Stable (Reaffirmed)
INR24.80 Million Proposed Term CRISIL BB+/Stable (Assigned)
Loan
INR40.00 Mil. Letter of Credit CRISIL A4+ (Reaffirmed)
INR5.00 Million Bank Guarantee CRISIL A4+ (Reaffirmed)
These rating strengths are partially offset by AEL's average
financial risk profile, marked by small net worth, modest capital
structure, and moderate debt protection metrics, large working
capital requirements, small scale of operations, customer
concentration in its revenue profile, and its susceptibility to
cyclicality in the economy.
Outlook: Stable
CRISIL believes that AEL will continue to benefit over the medium
term from its established customer relationships and the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' if the company diversifies its customer profile and
scales up its operations while maintaining its profitability.
Conversely, the outlook may be revised to 'Negative' if the
company's revenues and profitability decline due to decrease in
offtake from its customers, deterioration in receivables
collection, or if the company undertakes a large, debt-funded
capital expenditure (capex) programme, leading to deterioration in
its financial risk profile.
Update
AEL's operating income declined by around 4% in 2010-11 (refers to
financial year, April 1 to March 31), as compared to the previous
year. Its operating margin, however, remained stable at 11.6%. The
company's liquidity remains weak due to large working capital
requirements, on account of high inventory holding period of 81
days as on March 31, 2011. AEL has an order book of around INR700
million for 2011-12, which is to be executed/delivered over the
next 12-15 months. The company does not have any capex plans over
the medium term.
AEL entered into a joint venture (JV) with an Italian company for
development of frost-free evaporator in 2009. Until now, the
company has invested around INR33 million in this project, and
commercial operations are expected to commence from December 2011.
The management has stated that it will not make any significant
further investments in the JV.
AEL reported a profit after tax (PAT) of INR8.7 million on net
sales of INR444.8 million for 2010-11, against a PAT of INR3.5
million on net sales of INR463.0 million for 2009-10.
About the Co Annapurna Earcanal mpany
Incorporated in 1999, AEL manufactures roll-bound evaporators that
are used in direct-cooling refrigeration systems. The company
generates around 90% of its revenues from Whirlpool of India Ltd
(rated 'CRISIL AA-/Stable/CRISIL A1+'), Godrej & Boyce
Manufacturing Company Ltd (rated 'CRISIL AA-/Stable/CRISIL A1+'),
and LG Electronics India Pvt Ltd (rated 'CRISIL AA+/Stable/CRISIL
A1+'); the remaining revenues are from export to European
countries. AEL has the capacity to manufacture 4.5 million units
per annum.
BHAWANI FERROUS: CRISIL Suspends 'CRISIL B+' INR42.5MM Loan Rating
------------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Bhawani
Ferrous Pvt Ltd.
Facilities Ratings
---------- -------
INR77.5 Million Cash Credit CRISIL B+/Stable (Suspended)
INR42.5 Million Term Loan CRISIL B+/Stable (Suspended)
This is because BFPL has not been providing any information on its
operations and financials to CRISIL. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
information from the company.
Incorporated in 2002 as a private limited company at Jharkand,
BFPL manufactures thermo-mechanically treated bars and mild steel
ingots. Currently, it is managed by Mr. Rajesh Kumar Sultania, Mr.
Vikram Kumar Sultania, and Mr. Manish Kumar Sultania. The company
has an induction furnace with manufacturing capacity of 12,000
tonnes per annum (tpa) and a rolling mill with capacity of 18,000
tpa. BFPL markets the bars under the brand name, Kamdhenu, a
franchise of Kamdhenu Ispat Ltd.
CHANDRI PAPER: ICRA Assigns '[ICRA]BB' Rating to INR7cr Loan
------------------------------------------------------------
ICRA has assigned an '[ICRA]BB' rating to the fund based
facilities of Chandri Paper & Allied Products Pvt. Ltd.
aggregating to INR7.00 crore. The rating carries a stable outlook.
ICRA has also assigned an '[ICRA]A4' rating to the
non-fund based facilities of CPAPPL aggregating to INR13.00 crore.
The ratings are constrained by the company's small scale of
operations, its low profitability indicators and weak operating
cash flows due to the limited value addition in the trading
business. The ratings are further constrained by the vulnerability
of the company's operations to any adverse movements in the prices
of crude oil to some extent, which is mitigated in case of imports
done against fixed price firm orders. ICRA further notes that the
company's sourcing is largely from foreign suppliers thereby
exposing its profitability to foreign exchange fluctuations to the
extent of unhedged portion. The ratings however favourably take
into account the long operating track record of the promoters in
wax business, established relationships with its suppliers, wide
customer base, and diversification in its product profile to some
extent with commencement of trading in base oil and bitumen apart
from paraffin wax. While the company's capital structure is highly
leveraged with gearing level at 1.68 times as on March 31, 2011,
about 32% of current debt outstanding comprises unsecured loans
from promoters and various companies owned by promoters.
About Chandri Paper
Chandri Paper & Allied Products Private Limited (CPAPPL) was
incorporated in the year 2003 with an objective of manufacturing
and trading paraffin wax from slack wax, which is a by-product of
the lubrication oil refinery process. CPAPPL established its
manufacturing facilities at Tarapur (Maharashtra) with a capacity
to produce 3600 MT of paraffin wax annually. Since the time it was
incorporated, CPAPPL has been supplying paraffin wax primarily to
the local customers who manufacture candles. In the year 2008, the
company made a foray into the business of trading base oil,
wherein it imports base oil from oil refining companies based in
Iran, Hongkong, and Singapore and sells them in the domestic
market. It supplies base oil mainly to companies involved in
manufacturing of oil related products such as vaseline, grease,
engine oil, and transformer oil.
In FY 2010, CPAPPL reported Profit After Tax (PAT) of INR0.15
crore on an operating income of INR34.89 crore. In FY 2011, CPAPPL
reported Profit Before Tax (PBT) of INR1.08 crore on an operating
income of INR69.52 crore (provisional).
CITY BEAUTIFUL: CRISIL Suspends 'CRISIL D' INR135.6MM Loan Rating
-----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of City
Beautiful Hotels & Resorts Pvt Ltd.
Facilities Ratings
---------- -------
INR3.5 Million Cash Credit Limit CRISIL D (Suspended)
INR135.6 Million Term Loan CRISIL D (Suspended)
This is because CBHRPL has not been providing information on its
operations and financials to CRISIL. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
information from CBHRPL.
Incorporated in 2007, CBHRPL is setting up a 66-room, four-star
hotel, with a restaurant-cum-bar and banquet hall on the Zirakpur-
Chandigarh highway in Punjab, for INR223 million.
DEBBAS PRIME: ICRA Withdraws 'LBB+' Rating on INR5cr LT Loan
------------------------------------------------------------
ICRA has withdrawn the 'LBB+' rating assigned to the INR5.00 crore
long term fund based facilities and the 'A4+' rating assigned to
the INR35.00 crore short term non-fund based facilities of Debbas
Prime Solutions Private Limited as the company has closed the
facilities and there is no amount outstanding against the rated
instruments.
DHARMAPURI ROLLER: CRISIL Ups Rating on INR36.7MM Loan to 'BB+'
--------------------------------------------------------------
CRISIL has upgraded its rating on The Dharmapuri Roller Flour
Mills' long-term bank facilities to 'CRISIL BB+/Stable' from
'CRISIL BB/Stable', while reaffirming the short-term rating at
'CRISIL A4+'.
Facilities Ratings
---------- -------
INR36.7 Million LT Loan CRISIL BB+/Stable
(Upgraded from
'CRISIL BB/Stable')
INR130 Mil. Cash Credit Limits CRISIL BB+/Stable
(Upgraded from
'CRISIL BB/Stable')
INR35 Mil. Overdraft Facility CRISIL BB+/Stable
(Upgraded from
'CRISIL BB/Stable')
INR23.3 Mil. Letter of Credit CRISIL A4+ (Reaffirmed)
and Bank Guarantee
The rating upgrade reflects the sustained improvement in DRFM's
financial risk profile, marked by an improvement in its gearing to
less than 1.5 times as on March 31, 2011 from 2.2 times as on
March 31, 2010. The improvement was driven by the firm's efficient
working capital management, stable operating margins and healthy
growth in sales by 14% year-on-year in 2010-11 (refers to
financial year, April 1 to March 31). The upgrade also reflects
CRISIL's belief that DRFM will be able sustain its working capital
management and, consequently, sustain its financial risk profile.
The ratings also factor in the benefits that DRFM derives from its
established presence, and integrated operations, in the flour mill
business and its moderate financial risk profile, though
constrained by moderate networth levels. These rating strengths
are partially offset by the firm's exposure to intense competition
because of the fragmented nature of the flour mill business.
Outlook: Stable
CRISIL believes that DRFM will maintain a stable business risk
profile over the medium term, backed by its established presence
in the flour business and longstanding relations with its
customers. The outlook may be revised to 'Positive' if there is
significant improvement in the firm's sales and profitability or
if the capital structure improves, most likely because of equity
infusion. Conversely, the outlook may be revised to 'Negative' if
DRFM's operating margin reduces, the firm undertakes a large,
debt-funded capital expenditure programme, or if there are large
withdrawals by partners.
About Dharmapuri Roller
Set up in 1983 as a partnership firm, DRFM is engaged in
converting wheat into flour products, and has a capacity of 60,000
tonnes per annum (tpa). It operates two flour mills and has nine
godowns for stocking inventory in Tamil Nadu. The firm also has
four windmills, with a total capacity of 1.65 Mega Watts for
captive consumptions, catering to around 50 percent of its power
cost.
For 2010-11, DRFM reported a provisional profit after tax (PAT) of
INR43 million on net sales of INR1226 million, as against a PAT of
INR24 million on net sales of INR1077 million for 2009-10.
HI-MAC CASTINGS: ICRA Reaffirms '[ICRA]B' Rating on INR2.5cr Loan
-----------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B' rating to the INR2.50 crores
fund-based limits and INR10.25 crores term loan facility of
Hi-Mac Castings Private Limited.
The rating continues to reflect modest scale of HCPL's operations
and its weak financial risk profile characterized by losses in
initial years of its operations leading to adverse capital
structure. The rating also takes into account vulnerability of the
company's profitability to the cyclicality associated with the
steel and automobile industry and the high working capital
intensity of the business which exerts pressure on the liquidity
position of the company.
The rating however takes comfort from the healthy growth in the
operating income to INRRs. 14.51 Cr. in FY 11; reputed customer
base comprising of major auto component manufacturers and
insulator/ electrical companies and favorable demand outlook for
the domestic automobile industry.
Hi-Mac Casting Private Limited (HCPL) was incorporated in the year
2006-07 by the Radhe group. HCPL manufactures Ductile Iron/Cast
Iron Castings from its plant based in Rajkot, Gujarat. It was
setup with an installed capacity of 7200 MTPA and started
commercial production from December 2008. The total project cost
for setting the unit was INR16.92 crores, which was funded through
INR11.02 crores term loans, INR3.51 crores of equity capital and
the remaining by way of unsecured loans from the promoters. HCPL
is a TS-16949:2009 certified company.
Recent Results
For the year FY 11, the company reported an operating income of
INR14.51 crores and net loss of INR0.84 crores (provisional).
MAHINDRA SATYAM: Court Dismisses Raju's Bail Petitions
------------------------------------------------------
The Hindu reports that the Andhra Pradesh High Court on Tuesday
dismissed the bail petitions of B Ramalinga Raju and seven other
accused in the multi-crore Satyam Computer (nka Mahindra Satyam)
accounting fraud.
According to The Hindu, Justice Samudrala Govindarajulu, who
completed the arguments on the bail petitions on August 27, said
all the bail applications were dismissed.
Of the ten accused in the case, B Suryanarayana Raju, who is
Raju's brother, and T Srinivas, a former auditor of
PricewaterhouseCoopers, had been granted bail by different courts
earlier, The Hindu relates.
The Hindu notes that besides Raju, Satyam's former MD B Rama Raju,
ex-CFO Vadlamani Srinivas, former employees G Ramakrishna, D
Venkatpathi Raju and Ch Srisailam, former PWC auditor Subramani
Gopalakrishnan and Satyam's former internal chief auditor V S
Prabhakar Gupta, are currently lodged in Chanchalguda Central
Prison in Hyderabad.
According to the report, the accused had sought bail on the
grounds that the trial in the Satyam scam was not completed within
the Supreme Court-stipulated timeline of July 31 and all the
prosecution witnesses were examined.
Earlier, cancelling Mr. Raju's bail in October last year, The
Hindu recalls, the Supreme Court had stated that the accused could
file another bail application only after July 31, 2011, if the
trial in the case was not completed in the local court.
The Hindu relates that sources close to Mr. Raju said he and the
other accused may approach the Supreme Court for bail. They,
however, did not confirm when they are going to file the petition
in the apex court, The Hindu relays.
As reported in the Troubled Company Reporter-Asia Pacific, former
Satyam Chairman Ramalinga Raju resigned in January 2009 after
admitting he manipulated the company's accounts, including
inflating cash and bank balances, understating liabilities, and
overstating debtors position. Mr. Raju's confession prompted
investigations into the company by different entities including
Andhra Pradesh state police, the U.S. Securities and Exchange
Commission, and the Securities and Exchange Board of India. A
three-member board was subsequently created by the government,
which appointed KPMG and Deloitte Touche Tohmatsu to reevaluate
the software company's books. Several groups considered filing
class action suits against the company. Mr. Raju was later found
to have invented more than one quarter of Satyam's workforce and
used fictitious names to siphon INR200 million (US$4.1 million) a
month out of the company. Tech Mahindra Ltd. acquired control of
the company in April 2009.
Satyam reported a INR1.25 billion loss for the 12 months ended
March 31, 2010, and an INR81.8 billion loss for 2009. The company
reported INR1.47 billion net loss in 2011, its third annual loss.
About Mahindra Satyam
Headquartered in Secunderabad, India, Mahindra Satyam (PINK:SAYCY)
-- http://www.mahindrasatyam.net/-- formerly known as Satyam
Computer Services Limited, is information, communications and
technology (ICT) Company providing business consulting,
information technology and communication services. The Company is
powered by a pool of information technology (IT) and consulting
professionals across enterprise solutions, client relationship
management, business intelligence, business process quality,
operations management, engineering solutions, digital convergence,
product lifecycle management, and infrastructure management
services. The Company is a part of the Mahindra Group, a global
industrial conglomerate in India. The Mahindra Group's interests
span financial services, automotive products, trade, retail and
logistics, information technology and infrastructure development.
Subsequent to July 10, 2009, Venturbay Consultants Private Limited
(Venturbay) held 42.67% of the Company.
MEP COTTON: ICRA Assigns '[ICRA]D' Rating to INR55.5cr Loan
-----------------------------------------------------------
The rating assigned to the INR44.5 crore term loans and INR55.5
crore fund based facilities of MEP Cotton Limited has been revised
to '[ICRA]D' from 'LC'.
The rating also factors in the proximity of the company's ginning
facility to one of the major cotton growing belts in India and the
favorable monsoons thus ensuring adequate availability of raw
cotton during the current season. Moreover, the recent surge in
international and domestic cotton prices is likely to help
increase realizations for the company in the near term. However,
the business outlook for ginning in India remains sensitive to
Government regulations such as the Minimum Support Price (MSP)
mechanism for raw cotton and restrictions on export of cotton
bales.
Incorporated on January 2000, MEP Cotton Limited is a joint
venture between the KKM Group (Promoted by Mr. Krishna Kumar
Mittal) and the Welspun Group. The company is engaged in cotton
ginning, cottonseed oil extraction and refining with its
manufacturing facilities located at Gondal, Rajkot. The area
around the plant is one of the major cotton belts in India and
cultivates the Shankar-6 variety of cotton. The company setup its
first ginning unit in 2007. By the end of 2008, the company
completed the setup of the remaining two ginning units at the same
location and currently has a total capacity of pressing 1,800
bales per day. The company also manufactures cottonseed oil
through crushing of the residual cottonseeds at the plant and has
setup a refinery for refining washed oil.
Recent Results
MEP reported a net loss of INR3.3 crore in FY 2010 on an operating
income of INR321.6 crore as compared to a net loss of INR11.2
crore on an operating income of INR103.4 crore in FY 2009.
PENINSULA PROJECTS: ICRA Reaffirms [ICRA]BB Rating to INR17cr Loan
------------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA] BB' to the
INR17.02 crore fund based facilities (reduced from INR18.90 Cr) of
Peninsula Projects (Bangalore) Private Limited. The outlook on
the long term rating is stable.
The ratings are constrained by the stretched capital structure of
PPPL characterized by a high gearing of 9.4 x as on March 31st
2011 and weak coverage indicators ( NCA/Total Debt of 6.4%, and
Interest coverage of 1.5x). While assigning the rating, ICRA has
also taken note of the significant repayment obligation in the
short to medium term. The company's ability to generate cash flow
from operations to meet the debt repayment obligation would be
contingent on the ability of PPPL to be able to maintain healthy
occupancy levels and average room rent (ARR) in the intensely
price competitive Whitefield region on account of oversupply
situation.
The ratings however, favorably factor in the tie up of the company
with Royal Orchid Hotel Group (ROHG) which besides brand
recognition provides them an access to ROHG's global customer base
and by the improved occupancy levels witnessed in FY 2011 (-75%).
Peninsula Projects (Bangalore) Private Limited is a four-star
extended stay hotel property (88 rooms) in Bangalore which is
operational since January 2009. The hotel has a management tie-up
with ROHG and is known by the name 'Royal Orchid Suites'. It is
located in Whitefield, and mainly targets the business
travelers/extended stay guests of large number of companies
located in the area.
Recent Results (Unaudited)
PPPL reported a net loss of Rs 0.56Cr on an operating income of
INR9.74 Cr in FY 2011.
SHREE RAM: CRISIL Assigns 'CRISIL B+' Rating to INR7MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Shree Ram Re-Rollers Pvt Ltd.
Facilities Ratings
---------- -------
INR7 Million Term Loan CRISIL B+/Stable (Assigned)
INR60 Million Cash Credit CRISIL B+/Stable (Assigned)
The rating reflects SRRPL's moderate financial risk profile,
marked by a low net worth, moderate gearing, and weak debt
protection metrics coupled with risks associated with its modest
scale of operations in the highly fragmented & competitive steel
industry. These rating weaknesses are partially offset by the
extensive industry experience of SRRPL's promoters.
Outlook: Stable
CRISIL believes that SRRPL will continue to benefit from the
extensive industry experience of its management, over the medium
term. The outlook may be revised to 'Positive' in case SRRPL
significantly scales up its operations, while maintaining its
profitability, capital structure and debt protection metrics.
Conversely, the outlook may be revised to 'Negative' if there is
slowdown in revenues or deterioration in its profitability,
capital structure & debt protection metrics.
About Shree Ram
Shree Ram Re-rollers Private Limited, a private limited company
engaged in manufacturing of mild steel rods, squares and angles of
various sizes was set up in 1985 by Sharma family. The operations
of the company are managed by the promoter director Mr. M K
Sharma. Company's manufacturing facilities are at Rajgangpur
(Orissa) with installed capacity of 20,000 metric tonnes per
annum.
SRRPL posted revenues of INR169.8 million for 2010-11 on
provisional basis. It reported a profit after tax (PAT) of INR0.5
million on net sales of INR135.4 million for 2009-10 (refers to
financial year, April 1 to March 31), as against a PAT of INR1
million on net sales of INR 153.3 million for 2008-09.
RANJIT SINGH: CRISIL Reassigns 'CRISIL BB+' INR600MM Loan Rating
----------------------------------------------------------------
CRISIL has reassigned its rating on the bank facility of Ranjit
Singh & Co. as 'CRISIL BB+/Stable'; the rating was earlier
assigned on a short-term scale.
Facilities Ratings
---------- -------
INR600 Million Letter of CRISIL BB+/Stable (Reassigned)
Credit & Bank Guarantee
The rating continues to reflect RS&C's healthy order book, which
provides revenue visibility for over two years, and the benefits
that the firm derives from its promoters' experience in executing
high voltage transmission projects for over three decades. These
rating strengths are partially offset by RS&C's average financial
risk profile, marked by a small net worth, and the vulnerability
of the firm's operations to regulatory issues.
Outlook: Stable
CRISIL believes that RS&C will continue to benefit over the medium
term from its promoter's extensive experience in erecting
transmission towers and its strong order book. The outlook may be
revised to 'Positive' if there is more-than-expected improvement
in the firm's business performance, primarily driven by increase
in revenues and a sustained order book. Conversely, the outlook
may be revised to 'Negative' if there are significant delays in
projects impacting revenues or substantial decline in RS&C's order
book or if the firm fails to maintain a minimum level of capital
commensurate with its scale of operations.
About Ranjit Singh
RS&C was set up as a partnership firm under the Indian Partnership
Act in 1974. The firm has been in the business of erecting high
voltage power transmission lines for over three decades. It has
executed orders in the past for different power utilities, ranging
from 132 kilovolt (kV) to 765 kV. RS&C is promoted by Mr. Bhagwant
Singh Gill, Mr. Dhanwant Singh Gill, Mr. Jagwant Singh Gill, Mrs.
Jagjit Kaur, Mrs. Amarjit Kaur, and Ms. Jannat Gill.
RS&C's profit after tax (PAT) is estimated at INR15.9 million on
net sales of INR378.9 million for 2010-11 (refers to financial
year, April 1 to March 31), against a PAT of INR9.1 million on net
sales of INR153.4 billion for 2009-10.
SOORYA HEIIGHCON: CRISIL Places 'CRISIL B+' Rating on INR40MM Loan
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISILA4' ratings to the
bank facilities of Soorya Heiighcon Pvt Ltd.
Facilities Ratings
---------- -------
INR40.0 Million Cash Credit CRISIL B+/Stable (Assigned)
INR50.0 Million Bank Guarantee CRISIL A4 (Assigned)
The ratings reflect SHPL's weak financial risk profile, marked by
high total outside liabilities to tangible net worth ratio and
small net worth, exposure to risks related to cyclicality in the
Indian real estate industry, and small scale of operations in a
fragmented industry. These rating weaknesses are partially offset
by SHPL's established clientele, comfortable order book, and
stable operating profitability.
Outlook: Stable
CRISIL believes that SHPL will continue to benefit over the medium
term from its established clientele. The outlook may be revised to
'Positive' if the company's capital structure improves with
infusion of funds by the promoter, leading to improvement its
financial risk profile along with improvement in scale of
operations. Conversely, the outlook may be revised to 'Negative'
in case of higher-than-expected increase in working capital
requirement or if the company undertakes any significant debt-
funded capital expenditure programme, leading to further weakening
in its financial risk profile.
About Soorya Heiighcon
Set up in 2002 as a partnership firm by Mrs. Poonam Shekhawat and
Mr. Ashok Shekhawat, SHPL was reconstituted as a private limited
company in 2007. The company is a civil contractor engaged in
construction of commercial and residential complexes in Delhi and
the National Capital Region.
SHPL is estimated to report a profit after tax (PAT) of INR6.8
million on net sales of INR322.5 million for 2010-11 (refers to
financial year, April 1 to March 31), as against a PAT of INR4.1
million on net sales of INR197.3 million for 2009-10.
SWATANTRA LAND: CRISIL Suspends 'CRISIL B-' INR250MM Loan Rating
----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Swatantra Land & Finance Pvt Ltd.
Facilities Ratings
---------- -------
INR250.0 Million Term Loan CRISIL B-/Negative (Suspended)
This is because SLF has not been providing any information on its
operations and financials to CRISIL. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
information from SLF.
Incorporated in 1995 by Mr. V K Madan and Mr. Ajay Madan, SLF is a
real estate development company which constructs various projects,
including residential and commercial townships, shopping malls,
hotels, and information technology parks. SLF has constructed
Youth Hostel Chanakyapuri and Arunachal Bhawan in New Delhi, and
the World-Bank-funded hospital at Village Mandikhera (Haryana),
and the World-Bank-funded Women Polytechnic at Sector-08,
Faridabad (Haryana), and apartments for Delhi Development
Authority at Sarita Vihar, Mayapuri, Hari Nagar, Bhodella, and
Munirka in New Delhi.
TRADECOM INTERNATIONAL: ICRA Rates INR1.03cr LT Loan at 'LBB'
-------------------------------------------------------------
ICRA has placed the 'LBB' with 'Stable' outlook and 'A4' ratings
assigned to the INR1.03 Crore long term fund based and Rs5.00
Crore short term non fund based facilities of Tradecom
International Private Limited on notice of withdrawal for one year
at the request of the company.
As per ICRA's policy, the ratings will be withdrawn after one year
from the date of this withdrawal notice.
Incorporated in 1988, TIPL commenced its operations as a waste
paper indenting house, sourcing imported waste paper for domestic
recycled paper manufacturers. It gradually diversified its
operations over the years by providing a wide array of services,
including indenting imported pulp and chemicals for domestic paper
mills, supplying high quality imported news print for domestic
newspaper publications, domestic newsprint abroad and trading of
paper. The Company has its registered office in Mumbai.
=================
I N D O N E S I A
=================
ADARO INDONESIA: Moody's Says No Ratings Impact from Acquisition
----------------------------------------------------------------
Moody's Investors Service sees no immediate impact on P.T. Adaro
Indonesia's Ba1 corporate and senior unsecured bond ratings from
P.T. Alam Tri Abadi's acquisition of a 75% stake in P.T. Mustika
Indah Permai from Elite Rich Investment Limited for US$225.5
million.
Adaro Indonesia is a wholly owned subsidiary of Alam Tri Abadi,
which is in turn wholly owned by Adaro Energy Tbk, the ultimate
parent.
The outlook of the ratings remains stable.
"The acquisition has minimal impact on Adaro Indonesia's credit
metrics as it is expected to be predominately funded by Adaro
Energy's cash on hand. But it does highlight Adaro Energy's
strategy to pursues its growth and diversification through an
expanding portfolio of greenfield projects," says Simon Wong, a
Moody's Vice President and Lead Analyst for Adaro Indonesia.
"Moody's further expects Adaro Energy to maintain a prudent
approach in selecting potential investments, considering its track
record of conservative management and low tolerance for risk,"
adds Wong.
Adaro Energy had US$607.9 million of consolidated cash and cash
equivalents as at June 30, 2011, of which Adaro Indonesia held
US$334 million.
MIP, a coal mining company developing a greenfield coal project in
South Sumatra, and Adaro Energy's other existing greenfield
projects, such as the IndoMet Coal project, are expected to
provide greater geographical and product diversification for the
group in the medium to long term.
However, Moody's notes that such projects will require substantial
upfront investment and lead time to bring to production, although
development risk is partly mitigated by Adaro Energy's proven
track record in greenfield development.
And while future operating cash flows from the greenfield projects
will not be directly accessible by the lenders of Adaro Indonesia,
such investments are expected to be captured under Adaro Energy's
guarantee to Adaro Indonesia's loan and bond creditors.
The principal methodology used in rating PT Adaro Indonesia was
the Global Mining Industry Methodology, published May 2009.
Adaro Indonesia is one of the largest single-site coal producers
in the southern hemisphere and one of the world's largest sub-
bituminous coal companies. It exports approximately 76% of its
products to Southeast Asia, the US and Europe, while the rest is
for the domestic market. It is wholly owned by Adaro Energy, an
integrated energy group, listed on the Indonesia Stock Exchange.
P.T. Mustika Indah Permai holds a mining permit, known in
Indonesian as an IUP, which was granted in April 2010 for a period
of 20 years. The project covers an area of approximately 2,000
hectares. Incremental technical work is required to determine the
amount of coal resources and reserves in the concession.
GAJAH TUNGGAL: Moody's Confirms 'B3' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has confirmed PT Gajah Tunggal Tbk's B3
corporate family and senior secured ratings. The outlook for both
ratings is stable.
This closes the review action initiated on July 08, 2011,
following publicity surrounding an alleged claim of covenant
breach by an anonymous bondholder. The situation arose after the
payment of a dividend to shareholders which could potentially be
construed as being in contravention of the terms of GT's
restructured bonds.
In Moody's view, the risk of an event of default being called on
the basis of the dividend payments between now and the bond's
maturity in July 2014 is remote. However, the decision to pay
dividends before the bond's coupon returned to 10.25% is, in
Moody's view, a clear instance of management passing some of the
interest, surrendered by bondholders in 2009, to shareholders.
"It seems that there was no appetite among bondholders to
challenge the payments and so the Trustee had no obligation to
take the matter further" says Alan Greene, a Moody's Vice
President and Senior Credit Officer. "Our focus now is on the
company's performance over the next three years and whether GT can
successfully address the principal repayment risk" continues
Greene. The bond is structured to encourage GT to reduce the
amount outstanding. As well as a coupon step-up, from 6% now, to
8% in July 2012 and 10.25% in July 2013, there is a requirement to
repurchase 10% of the initial par amount by July 2013.
Furthermore, GT can now, at any time, buy in all or part of the
bond, on the market or at 100%.
"In the past, GT has simply refinanced maturing debts with ever
larger bonds, as the business cycle of the tire industry, in terms
of margins and capital expenditure, has seemingly driven events.
Given the flexibility of the bond terms, there is an opportunity
for active management of its future debt maturity profile," adds
Greene, who is also Moody's Lead Analyst for Gajah Tunggal.
The rating outlook is stable. Moody's is mindful of how the free
cash flow might be impacted over the next one to two years by an
accelerating capex programme, the impact of higher raw material
costs on prices and margins and the effect on working capital
needs of both inflation and the rising exposure to the original
equipment market. At the same time, GT's debt service burden is
rising and the rating remains sensitive to corporate governance
concerns.
The B3 ratings are unlikely to be upgraded in the near future.
However, moves to address the challenges of the discrete bond
repayment well before July 2014, coupled with the maintenance of
margins, will assuage many concerns and point to a sustainable
balance of business and financial risk. The achievement of Free
Cash Flow to Adjusted Debt of over 5% on a sustainable basis could
point to upward pressure on the rating.
Absent an event of default occurring, GT's B3 ratings could still
experience downward pressure if its credit profile weakens, such
that there is little buffer for its interest payments and debt
obligations. Debt/EBITDA in excess of 6x would indicate downward
pressure on the rating. Moody's would also expect meaures to be
taken to address refinancing risk well ahead of maturities.
Please see ratings tab on the issuer/entity page on www.moodys.com
for the last rating action and the rating history.
The principal methodology used in rating PT Gajah Tunggal Tbk is
Rating Methodology on Global Automotive Supplier Industry,
published January 2009.
Gajah Tunggal is Southeast Asia's largest integrated tire
manufacturer producing over 35 million tires covering motorcycles,
passenger cars and commercial vehicles. Exports accounted for 36%
of sales in 2010 and replacement market sales accounted for almost
87% of total tires sales in FY2010. Controlled by the Nursalim
family, Giti Tire, a Chinese tire manufacturer, is a 49.7%
shareholder in the company through its subsidiary, Denham Pte Ltd
while Compagnie Financiere Michelin holds a 10% interest.
=========
J A P A N
=========
ORIX-NRL TRUST: Moody's Cuts Rating on Class E Notes to 'Caa3'
--------------------------------------------------------------
Moody's Japan K.K. has downgraded the ratings for the Class A
through E Trust Certificates issued by Orix-NRL Trust 13.
Class A, Downgraded to A2 (sf) from Aa3 (sf); previously on
July 5, 2011 Aa3 (sf) Placed Under Review for Possible Downgrade
Class B, Downgraded to B1 (sf) from Baa3 (sf); previously on
July 5, 2011 Baa3 (sf) Placed Under Review for Possible Downgrade
Class C, Downgraded to Caa2 (sf) from B1 (sf); previously on
July 5, 2011 B1 (sf) Placed Under Review for Possible Downgrade
Class D, Downgraded to Caa3 (sf) from B2 (sf); previously on
July 5, 2011 B2 (sf) Placed Under Review for Possible Downgrade
Class E, Downgraded to Caa3 (sf) from B3 (sf); previously on
July 5, 2011 B3 (sf) Placed Under Review for Possible Downgrade
Deal Name: Orix-NRL Trust 18
Class: Class A through E Trust Certificates
Issue Amount (initial): JPY23.4 billion
Dividend: Floating
Issue Date (initial): March 31, 2008
Final Maturity Date: September, 2014
Underlying Asset (initial): Two non-recourse loans and two
specified bonds and cash
Originator: ORIX Corporation
Arranger: ORIX Corporation
Certificate Sales Intermediary: ORIX Securities Corporation (as of
the issue date)
ORIX-NRL Trust 18, effected in March 2008, represents the
securitization of two non-recourse loans and two specified bonds.
The Originator entrusted the loans to the asset trustee and, in
return, received the Class A through E and X Trust Certificates,
which it then sold through the Arranger and the Certificate Sales
Intermediary to investors. The trust certificates are rated by
Moody's.
In this transaction, interest and principal payments will be made
on a sequential basis. The losses will be allocated in the reverse
sequential order, starting with the most subordinate class of the
trust certificates.
Two of the non-recourse loans and one specified bond have either
been paid down or recovered and the transaction is currently
secured by one specified bond backed by one property.
Rating Rationale
The current rating action reflects these factors:
The transaction has now become a single borrower/single asset
deal. The remaining specified bond is backed by a full-serviced
hotel in the Kansai area.
In August 2011, Moody's interviewed the asset manager on its
operating and refinancing strategies, as well as its disposal
efforts toward the specified bond's maturity in August 2012.
The performance of the hotel have been declining since 2008, but
showed some improvement last year due to the rebound in the
economy and a pick up in the number of visitors.
The performance of the core departments -- rooms, restaurant,
wedding and banquet -- was temporarily affected by the March 11
earthquake. However, the room occupancy rates and the number of
banquets are showing signs of recovery.
Additionally, Moody's has confirmed -- at a meeting with the asset
manager -- that while some wedding parties were postponed after
the earthquake, the hotel has begun to see fewer cancellations or
scale reductions.
In spite of these improvements, the hotel's revenues have been
dropping, especially due to the weak demand for its rooms, given
the falling number of foreign visitors amid the quake and the
rising yen.
Therefore, it is likely that the operational revenue will continue
to be lower than Moody's previous assumptions. Moody's has re-
assessed its stabilized net cash flow and lowered it by
approximately 50%, compared with its initial assumptions.
Additionally, Moody's has also lowered its recovery assumption by
about 55%, compared with its initial estimate.
Moody's has taken into account the high volatility risk of the
hotel's operating cash flow, while re-assessing its recovery
assumptions as well as the property's scarcity value.
Moody's will continue to monitor the performance of the underlying
property, as well as the asset manager's exit strategies toward
the maturity of the specified bond.
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.
===============
M A L A Y S I A
===============
STAMFORD COLLEGE: Posts MYR1.08 Mil. Net Loss in Qtr Ended June 30
------------------------------------------------------------------
Stamford Berhad disclosed with the Bursa Stock Exchange its
unaudited financial results for second quarter ended June 30,
2011.
The Company posted a net loss of MYR1.08 million on MYR4.86
million of revenue in the quarter ended June 30, 2011, compared
with a net loss of MYR1.27 million on MYR6.96 million of revenue
in the same quarter of 2010.
At June 30, 2011, the Company's consolidated balance sheet showed
MYR44.19 million in total assets, MYR22.38 million in total
liabilities, and MYR21.20 million in total stockholders' equity.
The consolidated balance sheet as at June 30, 2011, showed
strained liquidity with MYR8.55 million in total current assets
available to pay MYR22.38 million in total current assets.
A full-text copy of the company's quarterly report is available
for free at http://ResearchArchives.com/t/s?76c3
About Stamford College
Based in Malaysia, Stamford College Berhad (KUL:STAMCOL) --
http://www.stamford.edu.my/-- is an investment holding and
management company. It principally engaged in the provision of
executive training. The Company offers over 50 courses of study,
which include full Undergraduate Degrees, Masters Degrees and
North American Degree Program. The disciplines offered by
Stamford range from Accounting to Business Administration,
Engineering, Computer Science, Hospitality Management and
Executive Secretaryship. Foreign students have also been part of
Stamford's landscape, and Stamford has more than 1,500 foreign
students from over 40 countries pursuing their higher education.
Stamford College Berhad has been considered as an Affected Listed
Issuer under Practice Note No. 17/2005 of the Bursa Malaysia
Securities Berhad as it has triggered Paragraph 2.1(e) of
PN 17/2005.
According to the Company's disclosure statement with the bourse,
it triggered the PN 17/2005 listing since auditors have expressed
a modified opinion with emphasis on the Company's going concern
status in the latest audited accounts for the financial year ended
December 31, 2008 and the Company's shareholders equity on a
consolidated basis is equal to or less than 50% of the issued and
paid-up capital of the company.
SYARIKAT KAYU: Swings to MYR607,000 Net Loss in Qtr Ended June 30
-----------------------------------------------------------------
Syarikat Kayu Wangi Berhad posted a net loss of MYR607,000 on
MYR7.20 million of revenue in the quarter ended June 30, 2011,
compared with net income of MYR3.25 million on MYR7.82 million of
revenue in the same quarter of 2010.
At June 30, 2011, the Company's consolidated balance sheet showed
MYR98.58 million in total assets, MYR82.28 million in total
liabilities, and MYR16.29 million in total stockholders' equity.
The consolidated balance sheet as at June 30, 2011, showed
strained liquidity with MYR22.09 million in total current assets
available to pay MYR81.80 million in total current assets.
A full-text copy of the company's quarterly report is available
for free at http://ResearchArchives.com/t/s?76c4
About Syarikat Kayu
Headquartered in Johor, Malaysia, Syarikat Kayu Wangi Berhad is
principally involved in the development of residential and
commercial projects. Its other activities include housing
construction, production of sawn timber, manufacture of
prefabricated timber rooftrusses and timber trading. The
Company first made a loss in 1999 when it defaulted on its first
bond payment. The company has failed to turn its finances
around and has been suffering continuous losses since then.
The company was classified as an affected listed issuer of the
Amended PN17/2005 on May 8, 2006, since its latest audited
financial statements for the year ended Nov. 30, 2005, showed
that the company's shareholders' equity is MYR7,189,000, which
is less than 25% of the company's issued and paid up capital.
VASTALUX ENERGY: RHB Bank Serves Writ of Summons
------------------------------------------------
Vastalux Energy Berhad on Aug. 22, 2011, received a sealed copy of
a Writ of Summons together with a Statement of Claim, by a way of
service to VEB as a Second Defendant. The Writ of Summons and
Statement of Claim were also served on six other defendants.
The suit arises from a Corporate Guarantee dated Sept. 7, 2009,
provided by VEB to RHB Bank Berhad for banking facilities extended
by the bank to Vastalux Offshore Services Sdn Bhd, a subsidiary of
the Company. The banking facilities comprise of overdraft, trade
and bank guarantee facilities totalling MYR7,834,487.10.
RHB is making a claim against VEB and six other defendants for
MYR3,066,883.46 being the outstanding banking facilities together
with interest rate of 3.5% per annum on the Principal Sum, from
June 1, 2011, until the date of full settlement, costs and other
such relief.
The financial impact or losses to the Company arising from the
above suit, if any, is expected to be limited to the Claim.
There is no expected operational impact to the Company as Vastalux
Sdn Bhd (in Liquidation), being the immediate holding company of
VOSSB has been placed under liquidation.
The Company is currently seeking the advice of its solicitors.
The suit has been fixed for a Case Management on Sept. 13, 2011,
at the Kuala Lumpur High Court, Kompleks Mahkamah Jalan Duta, in
Kuala Lumpur.
Vastalux Energy Berhad (KUL:VASTALX) is a Malaysia-based
investment holding company. The Company, through Vastalux Sdn.
Bhd., is engaged in the provision of offshore and onshore hook-up
and commissioning, offshore topside and onshore facilities
maintenance services, offshore and onshore minor fabrication
works and charter of marine vessel. Its indirect subsidiaries
are Vastalux Fabricators Sdn. Bhd., which is engaged in workshop
and fabrications job; Vastalux Onshore Services Sdn. Bhd., which
is engaged in onshore construction of oil and gas plant; Vastalux
Capital Sdn. Bhd.; Vastalux E&C Sdn. Bhd., which is engaged in
the provision of top side major maintenance works; Vastalux
Offshore Services Sdn. Bhd., which is engaged in hook-up and
commissioning works; Vastalux Marine Sdn. Bhd.; Merak Utama Sdn.
Bhd, which is engaged in under water inspection for structural
integrity; PT Vastalux Energy; V-Factor Sdn. Bhd., and Vastalux-
Anpha Company Limited.
Vastalux Energy Berhad has been considered a PN17 Company
pursuant to Paragraph 2.1(e) of PN17.
The PN17 criteria was triggered as a result of an expressed
modified opinion with emphasis on the company's going concern on
the latest audited consolidated financial statements for the
financial year ended Dec. 31, 2009, and shareholders' equity
of the company on a consolidated basis as at September 30, 2010,
is less than 50% of the issued and paid-up share capital of VEB
as at Sept. 30, 2010.
On Feb. 23, 2011, the Company announced that pursuant to the
Winding-Up of Vastalux Sdn. Bhd., the Company had triggered
additional criteria under Paragraph 2.1 (c) of the PN 17 of the
Main Market Listing Requirements.
====================
N E W Z E A L A N D
====================
MERCER GROUP: Shuts Brisbane Factory, Taps New CEO after Losses
---------------------------------------------------------------
Marta Steeman at BusinessDay.co.nz reports that Mercer Group is
shutting its Brisbane factory and appointing new executive
management after posting a loss of NZ$9.4 million.
The company is in breach of its interest cover covenants and is in
discussions with its bank over that, BusinessDay.co.nz says.
According to BusinessDay.co.nz, the NZ$9.4 million loss for the
year to June 30, 2011, compares with a NZ$3.3 million loss for the
previous year and a NZ$2.6 million loss the year before that.
BusinessDay.co.nz relates that Mercer's directors said they were
satisfied it was appropriate to prepare the company's financial
statements on a going concern basis.
BusinessDay.co.nz reports that the company's new chairman, Garry
Diack, said the directors had decided after the unacceptable
losses to appoint a new chief executive, Rodger Shepherd, to run
the company. He would be supported by a new part-time chief
financial officer, Tobin Blathwayt, BusinessDay.co.nz notes.
Allan and Jean Hubbard, and their associated interests, hold
45.13% of Mercer, but the Hubbards' assets are in statutory
management, BusinessDay.co.nz discloses. Christchurch financier
Humphry Rolleston also has substantial interests, the report says.
A new fund, the Rakaia fund, run by a Rolleston-related company,
has invested NZ$3.3 million in Mercer, BusinessDay.co.nz adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 3, 2011, Mercer Group accepted an offer from Westpac to
extend its banking facilities to Dec. 31, 2011. The offer
provides for a reduction to the facility limits of NZ$1.5 million
out of the proceeds of the fully underwritten rights issue in
early 2011, NZ$1 million in July 2011 and NZ$3 million in
November 2011.
Established in 1882, Mercer Group designs, makes and distributes
stainless steel products for the industrial, dairy, commercial,
food processing, healthcare and residential buildings industries.
The Mercer group of companies are subsidiaries of the New Zealand
listed company Broadway Industries Limited (NZE:BWY).
NATIONAL FINANCE: Trial Delayed as Director Seeks to Legal Aid
--------------------------------------------------------------
BusinessDay reports that a High Court trial involving three
National Finance directors faces a delay of at least six to eight
weeks while one defendant seeks to overturn a decision to deny him
legal aid.
BusinessDay relates that banned directors Trevor Allan Ludlow,
Anthony Banbrook and Carol Braithwaite face criminal charges under
the Securities Act and Financial Reporting Act.
According to BusinessDay, Mr. Ludlow has already been convicted on
similar charges brought by the Serious Fraud Office, although he
plans to appeal that decision, also with the help of legal aid.
A call-over on the case was due to be heard in the Auckland High
Court on Monday and has been deferred today, August 31.
According to the report, Mr. Ludlow said he was seeking the
government assistance because he didn't have any assets and only
earned $4,600 last year.
BusinessDay relates that Mr. Ludlow said he had earned a living
doing concrete repair work and debt-collecting, but much of his
time had been taken up with trying to defend himself in the two
cases.
Mr. Ludlow, as cited by BusinessDay, said the level of detail
required for the legal aid review process was "mind boggling" and
that the Legal Services Agency estimated it would take six to
eight weeks to give a decision after he had applied.
"One thing I can assure you is that I don't have any money. The
State seem to be terribly misinformed that I actually have a big
bin full of money somewhere, and I don't," BusinessDay quotes
Mr. Ludlow as saying.
Mr. Ludlow said he had renounced any benefit from a family trust
when he realised he had been made a beneficiary in error, and that
the trust had made a loss of NZ$60,000 last year, according to
BusinessDay.
BusinessDay adds that Mr. Ludlow said if the review failed he
would take his application to the High Court, as former Bridgecorp
director Rod Petricevic did earlier this year. Mr. Petricevic
failed in his bid.
About National Finance
National Finance 2000 Ltd., whose core business was car finance,
was placed in receivership in May 2006, owing 2,000 investors
NZ$24 million.
SOUTH CANTERBURY: Skyline Buys Glacier Helicopter Business
----------------------------------------------------------
BusinessDesk reports that Skyline Enterprises has agreed to buy
Queenstown-based rival Totally Tourism, including the Glacier
Helicopters business once co-owned by Allan Hubbard's Helicopters
(NZ).
According to BusinessDesk, Totally Tourism exercised its right to
buy the half stake in Glacier Helicopters it didn't already own
when Mr. Hubbard's Helicopters (NZ) was sold to Canadian
Helicopters Group as part of the South Canterbury Finance
receivership.
The side sale of the Glacier stake reduced the sale price of
Helicopters (NZ) by NZ$6 million to NZ$154 million, BusinessDesk
says.
BusinessDesk notes that Skyline's purchase of Totally Tourism,
which operates ski, rafting and cruise ventures, will settle at
the end of the month. No price was disclosed, the report adds.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited
(NZE:SCFHA) -- http://www.scf.co.nz/-- is engaged in the
provision of financial services. The Company's principal
activities are borrowing funds from public and institutional
investors and on lending those funds to the business, plant and
equipment, property, rural and consumer sectors. It typically
advances funds by means of hire purchase, floor plans, leasing of
plant, vehicles and equipment, personal loans, business term
loans and revolving credit facilities, mortgages against
property, and other financial instruments, including consumer
loan insurance.
On Aug. 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under
heightened surveillance since 2008. As part of that, SCF was
granted a Trustee waiver in February 2010 to allow it time to
recapitalize. Unfortunately, the Company's Directors have
advised us that they have not been successful with respect to a
recapitalization and requested us to appoint a receiver. At this
point we, as Trustee, agree that it is the best interests of
debenture, deposit and bond holders to do that," said Yogesh
Mody, Southern Regional Manager for Trustees Executors Limited.
The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.
STRUCTURED FINANCE: Defaults on Moratorium Deal
-----------------------------------------------
BusinessDay.co.nz reports that Structured Finance Ltd has
defaulted on a moratorium deal allowing it a two-year grace period
to repay investors owed NZ$32.5 million.
BusinessDay.co.nz says the company, owned by Auckland-based
financier Martyn Reesby, collapsed in May 2009 but investors
agreed a repayment plan offering 60c in the dollar by October this
year.
According to the report, most of the money is owed to investors in
four First Step funds marketed by defunct advisory group Money
Managers.
The first installment of 10c was due last September and the second
of 5c on March 31, BusinessDay.co.nz notes.
BusinessDay.co.nz relates that accounts filed on Friday show
neither was paid and the company's assets were valued at just
NZ$7.5 million.
According to BusinessDay.co.nz, the non-payment was an "event of
default" under the moratorium plan, entitling trustee Perpetual
Trust to appoint a receiver.
Instead, BusinessDay.co.nz notes, Perpetual demanded Structured
Finance hold minimum cash of NZ$1.3 million and pay any loan
recoveries above that amount to investors within 30 days.
BusinessDay.co.nz relates that Perpetual's head of corporate trust
Matthew Lancaster said receivership was not considered the best
option in this case.
"The monitoring accountant [PWC] has indicated if a receiver was
appointed it was likely they'd need to contract back the
management of Structured because of their knowledge of the
outstanding loans," BusinessDay.co.nz quotes Mr. Lancaster as
saying.
"So given how many loans are outstanding and the work that would
be needed this was the most cost-effective way of managing the
work out."
Structured Finance Ltd is a New Zealand-based property lender.
=================
S I N G A P O R E
=================
CLOUD 9: Creditors' Proofs of Debt Due Sept. 9
-----------------------------------------------
Creditors of Cloud 9 Lifestyle Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 9, 2011, to be included in the company's dividend
distribution.
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
DESIGNPHASE PRIVATE: Court Enters Wind-Up Order
-----------------------------------------------
The High Court of Singapore entered an order on Aug. 19, 2011, to
wind up the operations of Designphase Private Limited.
UIC Investments (Properties) Pte Ltd filed the petition against
the company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road, #05-11/#06-11
Singapore 069118
ESM PTE: Creditors' Proofs of Debt Due Sept. 20
------------------------------------------------
Creditors of ESM Pte Ltd, which is in members' voluntary
liquidation, are required to file their proofs of debt by
Sept. 20, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Aug. 18, 2011.
The company's liquidator is:
Mdm Chia Lay Beng
1 Scotts Road
#21-08 Shaw Centre
Singapore 228208
RITZ COSMO: Court to Hear Wind-Up Petition on Sept. 9
------------------------------------------------------
A petition to wind up the operations of Ritz Cosmo Pte Ltd will be
heard before the High Court of Singapore on Sept. 9, 2011, at
10:00 a.m.
N. Samina Parveen and Hasan Kuthus Ajmath Banu filed the petition
against the company on Aug. 12, 2011.
The Petitioner's solicitors are:
Messrs Raj Kumar & Rama
133 New Bridge Road #16-07
Chinatown Point
Singapore 059413
SHOEI CHEMICAL: Creditors' Proofs of Debt Due Sept. 26
------------------------------------------------------
Creditors of Shoei Chemical Singapore Pte Ltd, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Sept. 26, 2011, to be included in the company's
dividend distribution.
The company's liquidator is:
Lau Chin Huat
c/o 50 Havelock Road #02-767
Singapore 160050
==============
V I E T N A M
==============
DOT VN: Vietnamese IDNs Registrations Exceed 320,000
----------------------------------------------------
Dot VN, Inc., announced that since its official launch of the
Vietnamese Native Language Internationalized Domain Names on
April 28, 2011, registrations have exceeded 320,000 domain names
and has had great popularity with internet users in rural areas of
Vietnam.
According to Mr. Tran Minh Tan, deputy director of the VNNIC,
under the Ministry of Information and Communications, "[I]nternet
users in rural areas were especially fond of using Vietnamese-
language domain names since they used Vietnamese almost
exclusively on the internet. The meaning of Vietnamese domain
names was also clearer and more understandable to Vietnamese
users," Tan said.
"The Vietnamese IDNs represent a concerted effort on the part of
VNNIC and Dot VN to reach the whole of the Vietnamese population
and not just those that reside in major cities. While many online
services have focused almost exclusively on urban users in major
cities, those users represent but a small fraction of the over 89
million people that make up the population of Vietnam," said Dot
VN President Lee Johnson. "We hope to be a leader in the
development of services for the as yet underserved majority of
existing and potential internet users. The Vietnamese IDN
resonates with the whole of Vietnamese Society in a fundamental
way and engages Vietnamese users in their native speech in a way
that is far superior to standard Vietnamese domain names. We
believe that it is this connection that will allow us to reach
countless millions of new Vietnamese users with a depth and scope
not yet achieved through the power of their native language. As
VNNIC's partner in the IDN project we will continue to dedicate
ourselves to reaching all corners of Vietnam from the cities to
the fields with the very best products and services."
About Dot VN
Dot VN, Inc. (OTC BB: DTVI) -- http://www.DotVN.com/-- provides
Internet and telecommunication services for Vietnam and operates
and manages Vietnam's innovative online media web property,
www.INFO.VN. The Company is the "exclusive online global domain
name registrar for .VN (Vietnam)." Dot VN is the sole distributor
of Micro-Modular Data Centers(TM) solutions and E-Link 1000EXR
Wireless Gigabit Radios to Vietnam and Southeast Asia region. Dot
VN is headquartered in San Diego, California with offices in
Hanoi, Danang and Ho Chi Minh City, Vietnam.
Dot VN was incorporated in the State of Delaware on May 27, 1998,
under the name Trincomali Ltd.
The Company reported a net loss of US$5 million on US$1.01 million
of revenue for the year ended April 30, 2011, compared with a net
loss of US$7.32 million on US$1.12 million of revenue during the
prior year.
The Company's balance sheet at April 30, 2011, showed
US$2.76 million in total assets, US$8.77 million in total
liabilities,
and a US$6.01 million total shareholders' deficit.
PLS CPA, in San Diego, Calif., noted that the Company's losses
from operations raise substantial doubt about its ability to
continue as a going concern.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Tampa Convention Center, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. __, 2011
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
Dublin, Ireland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 3-5, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Grand Hyatt Atlanta, Atlanta, Ga.
Contact: http://www.turnaround.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
November 1-3, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Westin Copley Place, Boston, Mass.
Contact: http://www.turnaround.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott Chicago, Chicago, Ill.
Contact: http://www.turnaround.org/
October 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
*********
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 ***