/raid1/www/Hosts/bankrupt/TCRAP_Public/111012.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, October 12, 2011, Vol. 14, No. 202
Headlines
A U S T R A L I A
AARVBEE DEMOLITION: Placed in Voluntary Liquidation
CENTRO PROPERTIES: Plans $1-Bil. Asset Sale if Merger Approved
CENTRO SHOPPING: Fitch Rates AUD14-Mil. Class E Notes at "BB+sf'
NATIONAL LEISURE: Receivers Close Swell Tavern Hotel
PHARMACEUTICAL PLANT: Goes Into Administration, Seeks Buyer
SIGMA PHARMACEUTICALS: CEO Still Cautious Despite Half-Year Profit
SPORTS ALIVE: Punters Urge Ombudsman to Probe Gambling Commission
TEAM BONDI: Owes AUD1.4-Mil. to Creditors, Administrators Reveal
TIGER AIRWAYS: Expects Second-Quarter Net Loss after Suspension
H O N G K O N G
ARTISTIC INTERNATIONAL: Members' Final Meeting Set for Nov. 8
BEAR STEARNS: Lai and Haughey Step Down as Liquidators
BEAR STEARNS HK: Lai and Haughey Step Down as Liquidators
BLUESTONE CAPITAL: Commences Wind-Up Proceedings
BOXWOOD COMPANY: Members' Final Meeting Set for Nov. 7
BRIDGMAN FIRE: Wong and Arab Step Down as Liquidators
BROADBAND ENTERPRISES: Creditors' Proofs of Debt Due Nov. 7
BVI BUSINESS: Creditors' Proofs of Debt Due Nov. 8
CITIPOWER LIMITED: Ho and Yuen Appointed as Liquidators
EARTHWOOD TOYS: Creditors' Proofs of Debt Due Nov. 8
E-POWER GROUP: Final Meeting Set for Nov. 8
E-SERVICE TECHNOLOGY: Members' Final Meeting Set for Nov. 7
ESQUEL INVESTMENT: Members' Final Meeting Set for Nov. 8
FAR EAST: Placed Under Voluntary Wind-Up Proceedings
GREAT SMART: Chan Kuok Kun Steps Down as Liquidator
LONGTOP FINANCIAL: Deloitte Should Appear in U.S. Court, SEC Says
I N D I A
ALLIED RECYCLING: CRISIL Cuts Rating on INR130MM Loan to 'C'
CHARISMA BUILDERS: CRISIL Reaffirms 'CRISIL BB-' Long-Term Rating
CYBERABAD EXPRESSWAYS: CRISIL Cuts Rating on INR3.76BB Loan to 'D'
D. H. KHANDELWAL: CRISIL Places 'CRISIL B+' Rating on INR25MM Loan
GLOBAL POWER: CRISIL Assigns 'CRISIL C' Rating to INR35MM Loan
HOMERA TANNING: ICRA Cuts Rating on INR19.82cr Loan to '[ICRA]D'
KANODIA TECHNOPLAST: ICRA Raises Rating on INR14.03cr Loan to 'BB'
KGS MILESTONE: ICRA Puts '[ICRA]BB+' Rating on INR45cr Bank Loan
MARUTI PAPERS: ICRA Ups Rating on INR14.35cr Loan to '[ICRA] BB-'
MIQ STEELS: CRISIL Assigns 'CRISIL D' Rating to INR135MM Term Loan
NSL SUGARS: ICRA Assigns '[ICRA]B' Rating to INR240cr Bank Loans
NUTAN ISPAT: CRISIL Puts CRISIL B Rating on INR25MM Term Loan
RAM DEV: CRISIL Reaffirms 'CRISIL BB+' Cash Credit Rating
SATISH SUGARS: ICRA Assigns '[ICRA]BB' Rating to INR180cr Loans
SOUNDARYA DECORATORS: ICRA Cuts Rating on INR0.5cr Loan to 'BB'
SPA CERAMIC: ICRA Cuts Rating on INR4.14cr Term Loan to '[ICRA]B+'
SRI GANESH: CRISIL Puts 'CRISIL B+' Rating on INR90MM Cash Credit
T.C. TERRYTEX: ICRA Assigns '[ICRA]B+' Rating to INR59cr Term Loan
VENKATESWARA MODERN: Fitch Rates INR62.3-Mil. Cash Credit at 'B'
J A P A N
DTC LIMITED: Fitch Affirms Rating on 46 Tranches
P H I L I P P I N E S
BANCO FILIPINO: CA Junks Order for BSP Release of PHP25-Bil. Aid
S I N G A P O R E
AED SERVICES: Court Enters Judicial Management Order
ASIA INFRASTRUCTURE: Creditors' Proofs of Debt Due Nov. 4
ASIAN SECURITY: Court Enters Wind-Up Order
CONTI-LINES ASIA: Creditors' Proofs of Debt Due Nov. 6
EASTERN BULK: Creditors' Proofs of Debt Due Nov. 8
EVS SINGAPORE: Creditors' Proofs of Debt Due Nov. 8
INDELBERG TRADING: Court Enters Wind-Up Order
JAZCO INTERNATIONAL: Court Enters Wind-Up Order
MEYER DEVELOPMENT: Members' Final Meeting Set for Nov. 4
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
=================
AARVBEE DEMOLITION: Placed in Voluntary Liquidation
---------------------------------------------------
The Coffs Coast Advocate reports that Aarvbee Demolitions &
Recyclers Pty Ltd, the company that has served as a contractor to
the Bellingen Shire and Coffs Harbour City councils, has placed
itself into voluntary liquidation due to financial difficulties.
Aarvbee, employing 20 staff, had its main depot and administration
offices on Fraser Dr, Coffs Harbour. It operated the Raleigh and
Bellingen waste facilities and the recycling drop-off terminal at
the Coffs Harbour waste depot on Englands Rd.
According to The Advocate, the company, which built a reputation
during 16 years for "recycling everything" and "paying customers
the best price" for scrap metal and unwanted items from their back
sheds and garages, is thought to have fallen victim to an industry
downturn and tough financial times.
Aarvbee had been contracted by Bellingen Shire Council to operate
the Raleigh and Bellingen waste facilities since 2007, the report
relays.
"We understand that the financial difficulties relate to the
demolition side of the business and have come as a surprise and a
disappointment," the report quotes Bellingen mayor Mark Troy as
saying. "Council officers are now working with the liquidator who
has been appointed to manage Aarvbee to ensure continued service
to our community."
The Advocate relates that Aarvbee director Bob Bell said he had
been forced to make a tough decision but declined to comment.
Liquidator Morgan Chubb said it is too early to predict if the
company can trade its way out of business, ABC News reports.
Located in Coffs Harbour, New South Wales, Aarvbee Demolitions &
Recyclers Pty Ltd operates demolition and waste recycling
facilities. The company manages two recycling centres at the
Coffs Harbour and Bellingen waste depots. It also has a
demolition arm.
CENTRO PROPERTIES: Plans $1-Bil. Asset Sale if Merger Approved
--------------------------------------------------------------
Sarah Danckert at The Australian reports that Centro Properties
Group will proceed with more than $1 billion of asset sales if
shareholders approve the company's plans to merge Centro Retail
with Centro Properties to create a $3 billion property trust.
The Australian relates that Centro chief executive Robert Tsenin
confirmed Friday that the newly formed Centro Retail Australia
would consider off-loading $400 million of assets it held directly
and a further $600 million of shopping centres held by its 27
syndicate funds if the deal went ahead.
"These are non-core assets that don't fit into Centro Retail
Australia's operating strategy," the news agency quotes Mr. Tsenin
as saying.
According to the report, the sales would reduce Centro's combined
post-merger property portfolio to $6 billion and cut the value of
Centro Retail Australia's direct property to $4 billion and the
syndicate portfolio to $2 billion.
Centro Retail has earmarked 13 of its 43 assets for sale,
including the large Centro Bankstown and Centro Roselands along
with 19 of the 56 shopping centres the syndicate funds have
invested in, The Australian relates.
The reports notes that Centro has been putting its best foot
forward in recent days as it tries to sell an aggregation of funds
to shareholders before $2.9 billion of headstock debt falls due in
mid-December.
The Australian adds that the company confirmed that current Centro
Properties chairman Paul Cooper and non-executive director Jim
Hall, who were found earlier this year to have contravened the
Corporations Act when signing off on the company's 2007 faulty
accounts, had decided "some time ago" not to join the new board,
which will be led by former ANZ deputy chief Bob Edgar.
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 10, 2011, Centro Properties said it entered into an agreement
with its senior lenders to implement its restructure transaction
together with the proposed aggregation of the Australian assets
and interests held by CNP, Centro Retail Trust (CER) and certain
Centro managed funds. Centro's merger agreement involves a debt
for equity swap that will result in its lenders, chiefly hedge
funds, taking about 78% equity in the new listed vehicle, the
Australian said.
The TCR-AP, citing The Australian, reported on Aug. 30, 2011,
Centro Properties warned shareholders when handing down its full-
year results that the debt-bloated company still faces liquidation
if does not merge with the less indebted Centro Retail Group.
Shareholders will vote on the agreement on November 22, The
Australian discloses.
About Centro Properties
Based in Australia, Centro Properties Group (ASX:CNP)--
http://www.centro.com.au/-- is a retail investment organization
specializing in the ownership, management and development of
retail shopping centres. Centro manages both listed and unlisted
retail property and has an extensive portfolio of shopping
centres across Australia, New Zealand and the United States.
Centro has funds under management of US$24.9 billions
CENTRO SHOPPING: Fitch Rates AUD14-Mil. Class E Notes at "BB+sf'
----------------------------------------------------------------
Fitch Ratings has placed six classes of notes of Centro Shopping
Centre Securities Limited - CMBS Series 2006-1 (Centro CMBS 2006-
1) on Rating Watch Negative (RWN). The transaction is a
securitisation of Australian commercial mortgages securitised by
Centro Properties Group. The rating actions are:
-- AUD191.2 million Class A2: 'AA+sf'; placed on RWN
-- EUR63.7 million Class A3: 'AA+sf'; placed on RWN
-- AUD18.5 million Class B: 'AAsf'; placed on RWN
-- AUD31 million Class C: 'A-sf'; placed on RWN
-- AUD26.4 million Class D: 'BBB-sf'; placed on RWN
-- AUD14 million Class E: 'BB+sf'; placed on RWN
The RWN reflects risks surrounding the capacity of the underlying
obligors to refinance the securitized loans within their loan
maturity (20 December 2011) as well as the uncertainty with regard
to the capabilities of Centro CMBS 2006-1 to sell specific key
properties with characteristics different from the overall
portfolio before the legal final maturity, June 20, 2013. Fitch
notes that the current restructure of CNP as announced on
Oct. 7, 2011, may indirectly impact the refinancing negotiation
ability of the underlying loans within Centro CMBS 2006-1.
Moreover, if the CNP restructuring does not take place, there is
the potential for a large number of the group's properties to come
to market at the same time as the Centro CMBS 2006-1 properties,
potentially leading to greater value diminution and an adverse
effect on the property sale period. These potential adverse
effects may impact the ratings of the Centro CMBS 2006-1 notes.
"As the transaction approaches the legal final maturity,
refinancing risk and the time to sell specific commercial
properties becomes a key aspect of the Centro CMBS 2006-1 analysis
and ratings assessment," said James Zanesi, Associate Director in
Fitch's Structured Finance team. "A mitigating factor is that the
underlying properties of Centro CMBS 2006-1 are experiencing, high
occupancy rates, growing income and stable property values. With
the exception of the Roseland and Albury commercial malls, the
Centro CMBS 2006-1 portfolio remains granular with similar
commercial properties being successfully sold at market value over
the last 12 months" added Mr. Zanesi.
In the last two years, Australian commercial property values have
stabilised; the values of the current transaction's portfolio have
increased 4.4% since June 2010. The current net operating income
(NOI) for the portfolio remains strong and stable - as of June
2011, the NOI had increased 18.2% since June 2006, and 2% since
June 2010. The weighted average occupancy rate for the property
portfolio was 99.6% in June 2011.
The RWN will be resolved within six months. Fitch will continue
to monitor the developments of CNP restructuring and the marketing
of the securitised properties.
NATIONAL LEISURE: Receivers Close Swell Tavern Hotel
----------------------------------------------------
Nick Nichols at goldcoast.com.au reports that receivers have
closed the doors to the Swell Tavern at Burleigh Heads just days
after taking control of pubs owner National Leisure and Gaming
Ltd.
The hotel is one of three closed down by the receivers, who were
appointed to the group on October 6, the report says.
goldcoast.com.au relates that about 15 casual staff have lost
their jobs and up to five permanent staff have been made redundant
at the Swell.
But a spokesman said a number of pub staff have been transferred
to other NLG venues, the report relays.
NLG operated 35 properties in NSW and Queensland but was forced to
call in administrators after the company failed to secure an
extension to its AUD158 million debt facility, goldcoast.com.au
reports.
According to the report, the Swell has joined the Plantation Hotel
at Coffs Harbour and the Wynnum Point Hotel in Brisbane to close
its doors. It is understood the pubs were among the worst
performers within the group, says goldcoast.com.au.
"We've unfortunately had to close a small number of hotels in the
best interests of the company and the remaining venues within the
group's portfolio," goldcoast.com.au quotes receiver Stephen
Longley, of PPB Advisory, as saying.
Mr. Longley said all staff entitlements would be paid to those
made redundant, goldcoast.com.au relays.
The chances of the Swell reopening as a watering hole is now in
the hands of the property's landlord, the report notes.
"PPB Advisory has been in discussions with the landlords of the
three affected venues and licenses will revert back to their
ownership," Mr. Longley said, goldcoast.com.au reports.
About National Leisure
Based in Melbourne, Australia, National Leisure & Gaming
Limited (ASX:NLG) -- http://www.nationalleisure.com.au/-- is
engaged in the acquisition and operation of leisure and gaming
venues. NLG operates in the hospitality and gaming industry in
Australia. As of June 30, 2010, NLG operated 35 hotels. NLG's
portfolios are located in New South Wales and Queensland.
Ian England and Guy Edwards of PricewaterhouseCoopers were
appointed as voluntary administrators of NLG and its related
entities on Oct. 6, 2011.
Following the appointment of the voluntary administrators, NLG's
secured creditors appointed Stephen Longley, Jack Bournelis, and
Marcus Ayres of PPB Advisory as receivers and managers.
NLG said these appointments reflects the company's inability to be
able to effect solution to address the long term structural issues
associated with onerous leases at certain venues. The decision to
appoint voluntary administrators follows discussions with the
secured creditors of NLG, Goldman Sachs (Asia) Finance, York
Global Finance Holdings and Varde Investment Partners, who elected
not to extend the senior facilities, which were scheduled to
expire on Jan. 31, 2012.
PHARMACEUTICAL PLANT: Goes Into Administration, Seeks Buyer
-----------------------------------------------------------
SmartCompany reports that administrators of Pharmaceutical Plant
Company are seeking for potential buyers for the firm's business
after it went into administration on issues regarding tax
obligations.
Pharmaceutical Plant Company continues to trade as it waits for a
buyer to emerge, according to SmartCompany.
"The business has had some taxation obligations it was unable to
deal with, and we are working with the directors to sell as a
going concern and get a good return . . . . Part of the idea to
sell was that the director of the business is now 75, and he's
looking for an exit strategy for the company," the report quoted
Simon Nelson of Romanis Cant as saying. Expressions of interest
are being sought through October 21.
Bayswater-based Pharmaceutical Plant Company is a homeopathic
pharmaceutical company. The business is a certified organic
processor and has a license to manufacture herbal and homeopathic
products. The business also has leased premises, and a license to
manufacture veterinary products, along with plant and equipment.
SIGMA PHARMACEUTICALS: CEO Still Cautious Despite Half-Year Profit
------------------------------------------------------------------
Richard Gluyas at The Australian reports that after two years of
heavy losses and a "near-death experience", Sigma Pharmaceuticals
chief executive Mark Hooper is keenly aware that last month's
buoyant half-year profit has earned him some breathing space but
not a lot more.
In fact, The Australian notes, Mr. Hooper, who rejoined Sigma in
August last year after serving as the drug wholesaler's chief
financial officer from 2001 to 2006, is a little uncomfortable
with all this talk of a turnaround.
"I think the biggest threat for us is complacency -- the idea that
everything is now OK," Mr. Hooper told Strategy Matters, The
Australian reports. "We need to be judged by sustained
performance, because all we've done so far is chalk up one decent
profit result."
According to The Australian, Sigma's net profit of AUD26.7 million
for the July half year, announced last month, prompted an 11.5%
spike in the company's share price. In Mr. Hooper's lexicon, The
Australian says, a lot of people had been concentrating on the
Sigma hole instead of the donut.
The Australian relates that it was a forgiveable oversight given
that the magnitude of the hole, defined by losses of AUD235
million in 2011 and AUD398 million the year before, completely
overshadowed any assessment of Sigma's future profitability.
With the company in breach of its banking covenants, there was a
widely held view that the AUD900 million sale of the generics
division to South Africa group Aspen, announced in the month of
Mr. Hooper's arrival, was a company-saving deal, according to The
Australian.
The report states that Mr. Hooper does talk of a "near-death"
experience but plays down suggestions that Sigma was headed for
the knackery without the Aspen deal, which cleared a crippling
debt load in one stroke.
"I accepted the job to run the whole business, and I felt very
confident that I could turn around the whole lot," the report
quotes Mr. Hooper as saying. "It wouldn't have fazed me if the
business had stayed intact, but the board decided to sell
pharmaceuticals and I completely understand that decision."
Mr. Hooper said the second half will be "slightly better" than the
first, due to seasonal factors that make December Sigma's
strongest month, the report adds.
About Sigma Pharmaceuticals
Based in Australia, Sigma Pharmaceuticals Limited (ASX:SIP) --
http://www.sigmaco.com.au/-- manufactures, markets and
distributes pharmaceutical products through the pharmacy and
grocery channels and the provision of services to retail
pharmacists.
SPORTS ALIVE: Punters Urge Ombudsman to Probe Gambling Commission
-----------------------------------------------------------------
Henrietta Cook at The Canberra Times reports that the Australian
Capital Territory's public watchdog is under growing pressure to
investigate the ACT Gambling and Racing Commission over its
handling of collapsed betting agency Sports Alive Pty Ltd.
According to the report, disgruntled punters have flooded the
Ombudsman with complaints about the government regulator's
dealings with the ACT-registered Sports Alive, which was placed
into liquidation on August 25, stripping AUD3.7 million from the
pockets of thousands of Australians.
An informal group of more than 100 punters plans to inundate the
Ombudsman's office with even more complaints in coming weeks, the
Canberra Times says.
The news agency relates that Dennis Tuan-Mu, a spokesman for the
group, said the commission had failed to properly regulate Sports
Alive and likened the saga to a Ponzi scheme.
"Our group is simply looking for justice and accountability," the
report quotes Mr. Tuan-Mu as saying. "We are disappointed by the
commission's inability to discover clear breaches of basic
bookmaker requirements by Sports Alive since its inception. This
incident has affected people across Australia and worldwide and
shattered the confidence of punters in the security of funds held
by any bookmaker based in the ACT."
Mr. Tuan-Mu, as cited by the Canberra Times, said punters had lost
millions of dollars because the commission failed to ensure Sports
Alive maintained segregated bank accounts of betting monies, which
is required by legislation.
Despite monthly audits by the regulator, financial documents show
Sports Alive was sinking into insolvency for almost three years
before its eventual collapse, according to the report.
According to the Canberra Times, Gambling and Racing Commission
chief executive Greg Jones said he would "fully cooperate" with
any investigation.
"The matters we are dealing with are very complex, both legally
and financially . . . we are working with liquidators in terms of
patron funds and investors," Mr. Jones was quoted by Canberra
Times as saying.
ACT Ombudsman Allan Asher would not confirm whether an
investigation would be launched, the report adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 30, 2011, SmartCompany said investors including a Tasmanian
government agency, a prominent sports industry investor and a
well-known bookmaker are facing large losses after online betting
agency Sports Alive was placed into voluntary liquidation.
The company, which was licensed in the ACT but based in Melbourne,
called in liquidators on Aug. 25, 2011, leaving investors in the
dark and punters -- who are believed to have hundreds of thousands
of dollars locked up in Sports Alive accounts -- scrambling to get
their money, according to SmartCompany.
Sports Alive Pty Ltd is an Australian-based online betting agency.
TEAM BONDI: Owes AUD1.4-Mil. to Creditors, Administrators Reveal
----------------------------------------------------------------
gamesindustry.biz reports that former Team Bondi staff members are
still owed thousands of dollars, following the recent liquidation
of the company.
Citing documents filed by administrators deVries Tayeh,
gamesindustry.biz discloses that former employees are owed amounts
ranging from AUD1,600 to AUD99,000. According to the report,
Studio head Brendan McNamara who came under considerable criticism
for his leadership style in the weeks prior to the company's
collapse, is also owed over AUD102,000.
In total, gamesindustry.biz says, the company owes AUD1.4 million
to more than 40 different creditors.
As the company has gone through liquidation, the chances of staff
being repaid are not high, the report notes. However, there are
reported to be avenues open in Australia for reclaiming owed pay
through government programs.
According to gamesindustry.biz, the precise circumstances of Team
Bondi's collapse have not yet emerged, but it is known that as
development began to run well over proposed deadlines, publisher
Rockstar stepped in to take more control over the project and pump
funds into the company. It is likely that the forthcoming PC port
of LA Noire is an attempt by Rockstar to regain some of that lost
investment, the report notes.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 2, 2011, ZDNet said Team Bondi Pty Ltd. has been placed into
administration following rumors that its intellectual property and
assets were sold to Sydney-based multimedia production firm
Kennedy Miller Mitchell. ZDNet, citing news release from
Australian Securities and Investments Commission (ASIC), related
that Riad Tayeh and David Solomons of De Vries Tayeh were
appointed as joint administrators of Team Bondi on Aug. 30, 2011.
The appointment of administrator comes after a troubled period for
Team Bondi; its reputation was tarnished earlier this year when
employee complaints about working conditions and credits omissions
drew the attention of the International Game Developers
Association, according to ZDNet.
Team Bondi Pty Ltd. is the developer of the L.A. Noire game.
TIGER AIRWAYS: Expects Second-Quarter Net Loss after Suspension
---------------------------------------------------------------
Steve Creedy at The Australian reports that Tiger Airways Holdings
is expecting a second-quarter net loss "markedly larger" than the
SGD20.6 million (AUD16.3 million) it lost in the previous quarter
after problems in Australia slashed group passenger numbers by up
to a third.
According to the report, the Singapore-based airline expects its
cash balance to be "significantly lower" than the SGD156 million
it reported on June 30 as revenue is hit by the cost of the
Australian grounding and reduced flying program, as well as lower
load factors in Australia and Singapore.
The Australian relates that Tiger admitted to a SGD2 million
weekly loss during the six-week grounding, but has been reluctant
to detail conditions since its Australian planes began returning
to service on August 12.
Restrictions imposed by CASA slowed the re-establishment of its
Australian network and the reduced local fleet of eight aircraft
remains underused, the report notes.
Tiger has also been hit by higher operating expenses with jet fuel
prices 47% higher than last year's second quarter, and the
additional expense of meeting CASA requirements, according to The
Australian.
The latest figures do not give a breakout the Australian
operations, but show group passenger numbers were down 32% in July
and 22% in August, the report discloses.
The Australian relates that the group passenger load factor also
plummeted by 10 percentage points to 76% as the Australian
operations came online in August.
The airline said that although services recommenced on August 12,
seat sales were limited by the short lead time prior to the
resumption of service "and the limit imposed by CASA on the number
of flights," The Australian adds.
Australian Associated Press had reported 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 noted.
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.
================
H O N G K O N G
================
ARTISTIC INTERNATIONAL: Members' Final Meeting Set for Nov. 8
-------------------------------------------------------------
Members of Artistic International (Hong Kong) Limited will hold
their final general meeting on Nov. 8, 2011, at 10:00 a.m., at
Level 28, Three Pacific Place, at 1 Queen's Road East, in Hong
Kong.
At the meeting, Ying Hing Chiu and Chan Mi Har, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
BEAR STEARNS: Lai and Haughey Step Down as Liquidators
------------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey stepped down as
liquidators of Bear Stearns Asia Limited on Sept. 28, 2011.
BEAR STEARNS HK: Lai and Haughey Step Down as Liquidators
---------------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey stepped down as
liquidators of Bear Stearns Hong Kong Limited on Sept. 28, 2011.
BLUESTONE CAPITAL: Commences Wind-Up Proceedings
------------------------------------------------
Members of Bluestone Capital Management Hong Kong Limited, on
Sept. 30, 2011, passed a resolution to voluntarily wind up the
company's operations.
The company's liquidators are:
Paul David Stuart Moyes
Betty Yuen Yeung
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
BOXWOOD COMPANY: Members' Final Meeting Set for Nov. 7
------------------------------------------------------
Members of Boxwood Company Limited will hold their final meeting
on Nov. 7, 2011, at 10:00 a.m., at 9/F, Tung Ning Building, at
249-253 Des Voeux Road Central, in Hong Kong.
At the meeting, Chan Shu Kin and Chow Chi Tong, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
BRIDGMAN FIRE: Wong and Arab Step Down as Liquidators
-----------------------------------------------------
Wong Tak Man Stephen and Osman Mohammed Arab stepped down as
liquidators of Bridgman Fire Doors (HK) Limited on Sept. 28, 2011.
BROADBAND ENTERPRISES: Creditors' Proofs of Debt Due Nov. 7
-----------------------------------------------------------
Creditors of Broadband Enterprises Asia Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Nov. 7, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Sept. 28, 2011.
The company's liquidators are:
Lai Kar Yan (Derek)
Darach E. Haughey
One Pacific Place, 35th Floor
88 Queensway
Hong Kong
BVI BUSINESS: Creditors' Proofs of Debt Due Nov. 8
--------------------------------------------------
Creditors of The BVI Business Companies Act 2004, which is in
voluntary liquidation, are required to file their proofs of debt
by Nov. 8, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Kong Chi How Johnson
25th Floor, Wing On Centre
111 Connaught Road
Central, Hong Kong
CITIPOWER LIMITED: Ho and Yuen Appointed as Liquidators
-------------------------------------------------------
Messrs. Huen Ho Yin and Huen Yuen Fun on Aug. 26, 2011, were
appointed as liquidators of Citipower Limited.
The liquidators may be reached at:
Messrs. Huen Ho Yin
Huen Yuen Fun
22nd Floor
9 Des Voeux Road West
Hong Kong
EARTHWOOD TOYS: Creditors' Proofs of Debt Due Nov. 8
----------------------------------------------------
Creditors of Earthwood Toys Limited, which is in voluntary
liquidation, are required to file their proofs of debt by Nov. 8,
2011, to be included in the company's dividend distribution.
The company's liquidator is:
Kong Chi How Johnson
25th Floor, Wing On Centre
111 Connaught Road
Central, Hong Kong
E-POWER GROUP: Final Meeting Set for Nov. 8
-------------------------------------------
E-Power Group Limited will hold their final meeting on Nov. 8,
2011, at 10:00 a.m., at 3705 Gloucester Tower, The Landmark, at 15
Queen's Road Central, in Hong Kong.
At the meeting, Lim Shyang Guey and Lau Wai Ming Raymond, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
E-SERVICE TECHNOLOGY: Members' Final Meeting Set for Nov. 7
-----------------------------------------------------------
Members of E-Service Technology Development Limited will hold
their final general meeting on Nov. 7, 2011, at 10:00 a.m., at
Room 1005, Allied Kajima Building, at 138 Gloucester Road,
Wanchai, in Hong Kong.
At the meeting, Leung Mei Fan, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
ESQUEL INVESTMENT: Members' Final Meeting Set for Nov. 8
--------------------------------------------------------
Members of Esquel Investment Company Limited will hold their final
meeting on Nov. 8, 2011, at 10:00 a.m., at 20th Floor, Tung Wai
Commercial Building, at 109-111 Gloucester Road, Wanchai, in Hong
Kong.
At the meeting, Francis Young, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
FAR EAST: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------
At an extraordinary general meeting held on Sept. 28, 2011,
creditors of Far East Beauty Products (HK) Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Liu Chi Tat Stephen
20/F., Tak Woo House
17-19 D'Aguilar Street
Central, Hong Kong
GREAT SMART: Chan Kuok Kun Steps Down as Liquidator
---------------------------------------------------
Chan Kuok Kun stepped down as liquidator of Great Smart Trading
Limited on Sept. 23, 2011.
LONGTOP FINANCIAL: Deloitte Should Appear in U.S. Court, SEC Says
-----------------------------------------------------------------
Bloomberg News reports that U.S. Securities and Exchange
Commission lawyer Mark Lanpher said Deloitte Touche Tohmatsu CPA
Ltd. should be ordered to appear in a U.S. Court for rejecting a
SEC demand for documents related to an investigation of its former
client Longtop Financial Technologies Ltd.
According to the report, Mr. Lanpher said in a hearing Friday in
Washington that the Shanghai-based unit of Deloitte Touche
Tohmatsu Ltd. has refused to respond to a court filing seeking
documents that the regulator claims are "critical" to its probe of
possible fraud at Longtop.
"We have an ongoing fraud. Time is of the essence," Bloomberg
quotes Mr. Lanpher as saying. Mr. Lanpher was asking U.S.
Magistrate Judge Deborah Robinson to approve a "show cause" order
requiring D&T Shanghai to appear in court to explain why it hasn't
complied with a subpoena issued in May, the report notes.
Bloomberg relates that Judge Robinson responded that she needed
more information from the SEC regarding her authority to require a
foreign company to appear in a U.S. court. She gave the SEC until
Oct. 14 to make that argument in a court filing, the report says.
Michael Warden, a lawyer for D&T Shanghai, said in a July 8 letter
to the SEC that China law prevented his client from turning over
documents.
As reported in the Troubled Company Reporter-Asia Pacific on
May 27, 2011, Longtop Financial Technologies Limited said its
registered independent accounting firm, Deloitte Touche Tohmatsu
CPA Ltd., has resigned as auditor of the Company by letter dated
May 22, 2011. The Company also announced that Derek Palaschuk,
the Company's Chief Financial Officer, tendered his resignation by
letter, dated May 19, 2011, and the Board has taken his
resignation under advisement.
In its letter, DTT stated that it was resigning as the result of,
among other things (1) the recently identified falsity of the
Company's financial records in relation to cash at bank and loan
balances (and possibly in sales revenue); (2) the deliberate
interference by certain members of Longtop management in DTT's
audit process; and (3) the unlawful detention of DTT's audit
files. DTT further stated that it was no longer able to rely on
management's representations in relation to prior period financial
reports, that continued reliance should no longer be placed on
DTT's audit reports on the previous financial statements, and DTT
declined to be associated with any of the Company's financial
communications in 2010 and 2011.
Longtop said its Audit Committee has retained US legal counsel and
authorized the retention of forensic accountants to conduct an
independent investigation into the matters raised by DTT's
resignation letter. The Audit Committee has also initiated a
search for a new auditor. Longtop said the U.S. Securities and
Exchange Commission was conducting an inquiry regarding related
matters.
The TCR-AP, citing Bloomberg News, reported on Sept. 13, 2011,
that the SEC filed an enforcement action against D&T Shanghai for
failing to produce documents related to an investigation of its
former auditing client Longtop Financial Technologies Limited.
The agency, citing a filing in U.S. District Court in Washington,
said D&T Shanghai hasn't provided any documents to the SEC, which
issued subpoenas to the firm on May 27. As a result, the SEC has
been unable to access "critical" information in its probe of
possible fraud at Longtop.
The New York Stock Exchange delisted Longtop's American Depositary
Shares in August, Bloomberg adds.
About Longtop Financial
Based in Hong Kong, Longtop Financial Technologies Limited --
http://www.longtop.com/-- together with its subsidiaries provides
a range of software solutions and services to the financial
institutions in the People's Republic of China (PRC), including
the development, licensing and support of software solutions, the
provision of maintenance, support, and other services, and system
integration services related to the procurement and sale of third
party hardware and software.
=========
I N D I A
=========
ALLIED RECYCLING: CRISIL Cuts Rating on INR130MM Loan to 'C'
------------------------------------------------------------
CRISIL has downgraded its ratings on the long-term bank facilities
of Allied Recycling Ltd to 'CRISIL C' from 'CRISIL B/Stable' and
has assigned its 'CRISIL A4' rating to ARL's letter of credit
facility.
Facilities Ratings
---------- -------
INR130 Million Term Loan CRISIL C (Downgraded from
'CRISIL B/Stable')
INR150 Million Cash Credit CRISIL C (Downgraded from
'CRISIL B/Stable')
INR10 Million Proposed LT CRISIL C (Downgraded from
Bank Loan Facility 'CRISIL B/Stable')
INR10 Million Letter of Credit CRISIL A4 (Assigned)
The downgrade reflects deterioration in ARL's liquidity marked by
high utilization of bank lines. The weak liquidity has led to
instances of delay by the company in servicing its term debt for
the past six months.
The ratings reflect ARL's weak financial risk profile, marked by a
high gearing and weak debt protection metrics, and small scale of
operations in the intensely competitive long steel products
industry. These rating weaknesses are partially offset by the
benefits that ARL derives from its promoter's extensive industry
experience and its improving operating efficiency driven by the
stabilization of its wire rod plant.
About Allied Recycling
Set up in 2003 by Mr. Vijay Kumar Abrol, ARL manufactures billets
at its facility in Ludhiana (Punjab); till June 2009, the company
also manufactured ingots. In 2010-11 (refers to financial year,
April 1 to March 31), the company forward integrated the unit to
manufacture wire rods, with capacity of 200 tonnes per day. The
commercial operations of the wire rod unit started in December
2010. ARL also trades in hot-rolled and cold-rolled sheets, which
contribute about 30% to its turnover.
On a provisional basis, ARL's profit after tax (PAT) is estimated
at INR5.4 million on net sales of INR894.4 million for 2010-11;
the company reported a PAT of INR6.4 million on net sales of
INR874.2 million for 2009-10.
CHARISMA BUILDERS: CRISIL Reaffirms 'CRISIL BB-' Long-Term Rating
-----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Charisma
Builders continues to reflect the benefits that Charisma derives
from its promoter's extensive experience in the real estate
industry.
Facilities Ratings
---------- -------
INR415.0 Million LT Loan CRISIL BB-/Stable (Reaffirmed)
INR185.0 Million Overdraft CRISIL BB-/Stable (Reaffirmed)
Facility
This rating strength is partially offset by Charisma's exposure to
risks related to real estate development and the firm's
geographically concentrated and volatile revenue profile.
Update
Charisma's performance in 2010-11 (refers to financial year,
April 1 to March 31) remained subdued. The firm reported low sales
of about INR4 million from its real estate business and INR33
million from its windmill business. This is mainly because none of
the real estate projects that Charisma has undertaken neared
completion in 2010-11; also, the firm follows full completion
method for recording revenues which makes its revenue profile
lumpy. The firm's performance in 2011-12 is also expected to
remain weak owing to the same reasons. Currently, Charisma is
executing four real estate projects (two residential and two
commercial) in and around Chembur, Mumbai (Maharashtra), which
will be completed from 2012-13 onwards; hence, the firm's
performance will pick up pace from 2012-13. The projects are
likely to entail a total investment of INR1100 million, to be
funded in a debt-equity ratio of about 2:1.
Charisma has also extended large loans and advances of about
INR350 million to associate firms, which are also engaged in real
estate development. Though the extent of advances has reduced from
INR400 million in 2009-10, they continue to remain large. Of the
total advances, about INR230 million has been extended to Charisma
Builders Ltd. Any future financial assistance to its associates
remains a key rating sensitivity factor
Under Pawan Shakti, a separate division formed to operate
Charisma's wind power business, the firm sold four windmills in
2010-11, thereby generating a profit of about INR80 million. It
currently has nine windmills, each with a capacity of 600
kilowatt. The firm started earning INR3.95 per unit of electricity
sold to Maharashtra State Electricity Distribution Co Ltd in
2011-12, as against INR3.8 per unit in 2010-11.
Charisma reported, on a provisional basis, a profit after tax
(PAT) of INR91.86 million on net sales of INR36.8 million for
2010-11; it reported a PAT of INR41.9 million on net sales of
INR63.0 million for 2009-10.
Outlook: Stable
CRISIL believes that Charisma will continue to benefit from its
promoter's extensive industry experience and its large land bank.
The outlook may be revised to 'Positive' in case of a sustainable
improvement in its revenues and accruals, while maintaining its
debt protection metrics. Conversely, the outlook may be revised to
'Negative' if Charisma faces a subdued demand for any of its
projects, thereby weakening its debt protection metrics or net
cash accruals, or if the firm provides further financial support
to other group entities, which cannot be unwound at a short
notice, thereby impacting its liquidity.
About Charisma Builders
Charisma was set up by Mr. Sudhir V Shetty as a proprietorship
firm in 1982. Initially, it developed a few properties, such as
row houses, bungalows, and small residential buildings. Gradually,
the firm began undertaking bigger projects, such as residential
buildings providing 2 BHK/3 BHK accommodation and commercial
properties. Most of these projects are located in the eastern
suburbs of Mumbai, such as Chembur, Sion, and Govandi. Charisma
also set up a separate division for its wind power business, Pawan
Shakti, in 2007-08. Currently, it has nine windmills under Pawan
Shakti.
CYBERABAD EXPRESSWAYS: CRISIL Cuts Rating on INR3.76BB Loan to 'D'
------------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Cyberabad Expressways Ltd to 'CRISIL D' from 'CRISIL
B+(SO)/Stable'.
Facilities Ratings
---------- -------
INR3760 Million Term Loan CRISIL D (Downgraded from
'CRISIL B+(SO)/Stable')
The downgrade reflects delay by CEL in servicing its term debt.
CEL has not completed construction of its build-operate-transfer
(BOT) annuity road project due to delay in receipt of right-of-way
(ROW). As per the concession agreement, the original commercial
operation date (COD) was June 30, 2010, which was later revised to
September 30, 2011. CEL received the ROW in full only in April
2011. But pending approvals have led to further delays, and the
project's COD has been revised to Nov. 30, 2011. The time overrun
has also led to cost overrun for the project by around
INR300 million, which is being met by promoters. CEL has indicated
that around 95% of the project is complete as on date.
In the absence of any cash flows from operations, CEL received
funding support from its promoters for the payment of term loan
installment due in March 31, 2011. However, the installment due in
Sept. 30, 2011, has not been paid till date. CRISIL expects the
sponsors to arrange funds to ensure repayment of term loan, albeit
on a delayed basis.
However, CEL continues to benefit from the annuity nature of the
contract for the BOT project.
About Cyberabad Expressways
CEL is a special-purpose vehicle (SPV), originally promoted by
Gayatri Projects Ltd (GPL) and IL&FS Engineering & Construction
Company Ltd (IL&FS; formerly known as Maytas Infra Ltd [MIL]) in
2006-07 (refers to financial year, April 1 to March 31) to design,
construct, develop and maintain of a 11.7-kilometre stretch of the
Kollur-Patancheru section of the eight-lane Hyderabad outer ring
road. GPL and MIL had a 50:50 joint venture arrangement in the
project. In July 2009, IL&FS diluted part of its share to Terra
Projects Ltd (TPL). The engineering, procurement, and construction
(EPC) contract was originally awarded to MIL, which was later
taken up by Terra Infra Development Pvt Ltd (TIDPL; a TPL group
company. GPL still holds a 50% equity stake in CEL, IL&FS owns
42.71% of the shares, and TPPL owns the remainder.
The project cost of INR5.02 billion is being financed through a
term loan of INR3.76 billion, grant of INR807 million, and
promoters' equity. The 15-year concession period lasts up to
December 2022. The project is on BOT basis, with an annuity of
INR395 million, payable by Hyderabad Growth Corridor Ltd (HGCL)
semi-annually. HGCL is an SPV (74% owned) of Hyderabad Urban
Development Authority (HUDA, now under Hyderabad Metropolitan
Development Authority), while the remainder is owned by the
Infrastructure Corporation of Andhra Pradesh. The annuity is to be
deposited in an escrow account, from which the holders of the
rated debt will be paid.
D. H. KHANDELWAL: CRISIL Places 'CRISIL B+' Rating on INR25MM Loan
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of D. H. Khandelwal Commercial Pvt Ltd.
Facilities Ratings
---------- -------
INR170 Million Cash Credit CRISIL B+/Stable (Assigned)
INR25 Million Long-Term Loan CRISIL B+/Stable (Assigned)
INR5 Million Proposed LT CRISIL B+/Stable (Assigned)
Bank Loan Facility
The rating reflects the company's short track record of operations
and modest financial risk profile, marked by a strained capital
structure. These rating weaknesses are partially offset by the
promoters' extensive experience in the gold jewellery business.
Outlook: Stable
CRISIL believes that DH Khandelwal will maintain its credit risk
profile supported by its promoter's extensive industry experience.
The outlook may be revised to 'Positive' if the company's
financial risk profile improves substantially, led by large equity
infusion or in case of sustained revenue growth coupled with
stable margins, leading to better-than-expected cash accruals.
Conversely, the outlook may be revised to 'Negative' if DH
Khandelwal's capital structure and liquidity deteriorate, most
likely because of a large debt-funded capital expenditure or in
case of a less-than-expected sales and profitability, leading to a
weaker financial risk profile.
About D. H. Khandelwal
Incorporated in 2011, DH Khandelwal is a retailer of gold, silver,
and diamond jewellery in Nagpur (Maharashtra). The company started
operations in April 2011 under the name Khandelwal Jewellers. It
currently has a three-storey showroom with a built-up area of
around 8500 square feet. The showroom is managed by the promoter,
Mr. Rajesh Khandelwal, his father, Mr. Dhanraj Khandelwal, and
wife, Mrs. Radhika Khandelwal.
GLOBAL POWER: CRISIL Assigns 'CRISIL C' Rating to INR35MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL C/CRISIL A4' ratings to the bank
facility of Global Power Systems.
Facilities Ratings
---------- -------
INR20 Million Cash Credit CRISIL C (Assigned)
INR35 Million Proposed LT CRISIL C (Assigned)
Bank Loan Facility
INR25 Million Bank Guarantee CRISIL A4 (Assigned)
INR10 Million Letter of Credit CRISIL A4 (Assigned)
The ratings reflect frequent instances of delays by GPS in
servicing its term debt obligations (Not rated by CRISIL)
reflecting the GPS group's weak liquidity. The rating also factors
in GPS group's modest financial risk profile marked by high
gearing and modest debt protection metrics and its small scale of
operations and limited geographical reach. These rating weaknesses
are, however, offset by the promoters' long experience in the
electrical equipment industry and established relationship with
principals.
CRISIL has combined the financials of Global Power Systems (GPS)
and Global Power Services. This is because both the entities have
common promoters and fungible cash flows.
About Global Power
Global Power Systems is a proprietorship concern which was
incorporated in 2002 by Mr. Prashant Deshmukh. The concern is
authorized distributor of diesel and gas generators of Kohler
Company. The concern also provides installation and after sales
maintenance services to their customers. GPS begin operations as a
distributor of FG Wilson generators. However the association was
short lived and during the first year of its incorporation the
proprietorship begun their association with Kohler Power Systems
which required a distributor for Western and Central India. Since
then the concern has been associated with Kohler.
In 2009-10, Global Power Services was incorporated under the
proprietorship of Mrs. Nandini Deshmukh who is wife of Mr.
Prashant Deshmukh. The concern is a service dealership for
maintaining Reliance Communications telecom tower generators for
Vidharbha and Marathwada regions of Maharashtra. The concern has
also received contracts from Ashok Leyland and Escorts for
maintenance of their mid size DG Sets for the same region.
GPS group reported a profit after tax (PAT) of INR2.7 million on
net sales of INR52.5 million for 2009-10 (refers to financial
year, April 1 to March 31) against a PAT of INR 2.7 million on net
sales of INR 21.8 million for 2008-09.
HOMERA TANNING: ICRA Cuts Rating on INR19.82cr Loan to '[ICRA]D'
----------------------------------------------------------------
ICRA has revised the long-term rating from 'LC' to '[ICRA]D'
assigned earlier to the INR19.82 crore fund based facilities of
Homera Tanning Industries Private Limited. ICRA has also revised
the short-term rating from 'A5' to '[ICRA]D' assigned earlier to
the INR6.00 crore non-fund based facilities of HTIPL. The rating
action factors in the continued liquidity constraint as exhibited
by delays in meeting its debt obligation in time.
Homera Tanning Industries Private Limited is a manufacturer and
exporter of finished leather and shoe upper pair. The company was
incorporated in 1987 as a private limited company. Homera Tanning
Industries Private Limited is promoted by Mr. Rizwan Ullah and his
family. Mr. Rizwan Ullah has a long track record in the leather
business and has been engaged in the leather business since more
than four decades. Mr. Rizwan Ullah is the Managing Director of
the company; his family members are among other Directors in the
company and are involved in the in the day to day management of
the company. The manufacturing facility of the company is located
at Kanpur, Uttar Pradesh.
Recent Results
The company reported an operating income (OI) of INR43.70 crore as
on March 31, 2010. However, owing to increasing interest costs and
exchange rate losses the company reported a net loss of INR3.59
crore, resulting in a net margin of -8.2%.
KANODIA TECHNOPLAST: ICRA Raises Rating on INR14.03cr Loan to 'BB'
------------------------------------------------------------------
ICRA has upgraded the rating assigned to the INR14.03 crore term
loans (reduced from INR23.65 crore) and the INR29.5 crore long-
term fund based limits (enhanced from INR17.5 crore) of Kanodia
Technoplast Limited to '[ICRA]BB' from 'LBB-'. The outlook on the
long term rating is "stable". ICRA has reaffirmed the rating
assigned to the INR4.0 crore short-term non-fund based bank
facilities and INR13 crore short-term sub limit of FB limits
(earlier INR3.89 crore sub limits) of the company at '[ICRA]A4'.
The ratings of [ICRA]BB (Stable)/[ICRA]A4 have been assigned to
the INR8.62 crore proposed limits of KTL.
The upgrade in the ratings reflects improvement in the capital
structure following recent equity infusion, which also provides
cushion for future capital expenditure (capex) plans. The revision
in the ratings also takes into account the improvement in the
profitability during 2011-12 following shifting to paper based
packaging from plastic packaging following ban of plastics in
Gutkha/Pan Masala segment effective from March 2011. The ratings
continue to factor in long experience of promoter of KTL in the
domestic flexible packaging materials business; healthy growth in
revenues and customer base over the last few years; favorable
demand prospects for flexible packaging material in the domestic
market. The ratings, however, are constrained by the relatively
small size of operations in comparison to the size of the overall
flexible packaging industry; high competition from other players
in the fragmented industry and tight liquidity position as
reflected in high utilization levels of working capital limits.
ICRA also takes note of aggressive capex plans of KTL which could
result in deterioration in capital structure; however, timely
equity infusion through planned by the company could largely
mitigate the risk. Significant time or cost over-run in the
project implementation or delay in equity raising plans leading to
significant deterioration in capital structure and debt protection
metrics would be key rating sensitivities
About Kanodia Technoplast
Kanodia Technoplast Ltd was incorporated in 1995 as private
limited company (converted to public limited in Dec 2009) to
convert plain PE films into flexible packaging material. Later in
1997, the company entered into production of PE films to achieve
backward integration. In 2006, the company also ventured into
production of rotogravure cylinders as another step of backward
integration. Over the last few years, KTL has expanded its
capacities of laminates/laminated pouches with current capacity at
about 10,000 MTPA. KTL also set up 1.5 MW wind mill power plant in
Rajasthan in March 2009. KTL is a closely held company with major
stakes held by Chetan Kanodia, his relatives and friends.
KGS MILESTONE: ICRA Puts '[ICRA]BB+' Rating on INR45cr Bank Loan
----------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]BB+' to the INR45.0
crore fund based bank limits of KGS Milestone Constructions
Limited. ICRA has also assigned a short term rating of
'[ICRA]A4+' to the INR5.0 crore proposed facilities of Milestone.
The outlook on the long term rating is Stable.
The ratings assigned factor the limited track record and scale of
operations for Milestone, which has primarily concentrated on
residential projects in the past; the high customer concentration
risks, with majority of orders in the current backlog comprising
of KGS group companies; Milestone's presence in the highly
competitive buildings segment which involves low complexity of
work; and the low asset base of the company will require to be
ramped up in line with the planned increase in project execution.
Milestone's ability to scale up and undertake specialized orders
in the industrial and infrastructure segments, as planned, remains
to be seen.
The ratings also consider the high working capital intensity as on
end-FY2011, which has resulted in higher working capital
borrowings and increased gearing levels. The ratings draw comfort
from the longstanding experience of the promoter and the top
management of the company in the construction industry; benefits
expected to accrue from the ownership stakes of the KGS group and
Reliance Capital, with assured construction orders from the
various projects which are to be undertaken by the KGS group
companies; and the continuing growth in revenues, with moderate
operating profitability. The current order book position of
Milestone is strong with moderate diversification among
residential, commercial and infrastructure projects; however some
of the projects are still in planning / approval stages and are
susceptible to delays.
About KGS Milestone
KGS Milestone Constructions Limited, part of the Chennai based KGS
group, is a civil construction company. The company was promoted
in November 2006 by Mr Rakesh P Sheth as Milestone Shelters (P)
Limited; prior to the formation of this company, Mr Sheth had been
operating as a construction contractor through his proprietorship
concern. In March 2010, the promoters of KGS Developers Limited
purchased a 42.6% stake in Milestone Shelters (P) Ltd and the
company's name was changed to KGS Milestone Construction Limited.
During the same time, Reliance Capital Limited, part of the Anil
Dhirubhai Ambani Group, also obtained 14.90% share in this company
(Reliance Capital was already an investor in other KGS group
companies like KGS Developers Limited and KGS Infrastructure
Limited). Milestone has so far concentrated on residential
construction projects; but going forward intends to focus mainly
on industrial and infrastructure projects, with residential
projects to be undertaken mainly for the KGS group.
MARUTI PAPERS: ICRA Ups Rating on INR14.35cr Loan to '[ICRA] BB-'
-----------------------------------------------------------------
ICRA has upgraded the rating assigned to INR14.35 crore term loans
and INR6.80 crore fund based bank facilities of Maruti Papers Ltd.
to '[ICRA] BB-' from 'LB+'. ICRA has reaffirmed the rating
assigned to INR5.00 crore non-fund based bank facilities of MPL at
'[ICRA] A4'. The outlook on the long-term rating is Stable.
The rating upgrade takes into account the regularity in the debt
servicing by the company after the resumption of full operations,
which were affected during the capacity expansion undertaken by
the company from December 2010 to January 2011. Though the
modernization and capacity expansion from 24,000 MT per annum to
36,000 MT per annum would help the company to increase the scale
of operations and manufacture better quality kraft paper which
shall help in improving the net realizations, the debt funded
capacity expansion has adversely impact the financial profile of
the company with gearing increasing to 1.46 times as on March 31,
2011 from 1.06 times as on March 31, 2010. Moreover, the operating
profitability declined to 11.4% in 2010-11 from 12.7% in 2009-10
as the company had to use high cost waste paper for manufacturing
of kraft paper due to restriction on use of agri-residues in
absence of adequate pollution control system. The ratings continue
to take into account the long track record of the company in the
kraft paper segment with consistent growth and profitable
operations, presence in a major agricultural belt which ensures
easy availability of agricultural residues which are the main raw
materials for the company and the increasing demand from end-user
industries which shall keep the overall demand of kraft paper
healthy.
The ratings continue to remain constrained by the lack of product
diversification as the company manufactures only kraft paper which
is a relatively low value add product, modest scale of operations
and high competitive intensity in a fragmented industry dominated
by the unorganized sector. ICRA notes that the contribution margin
will remain sensitive to volatility in prices of agricultural
residues, such as bagasse, and waste paper, which have been
increasing in the past, on account of limited ability to pass on
the hike in the input costs.
Going forward, an improvement in the capacity utilization of the
paper plant along with a timely enhancement of the working capital
limits to fund the growth in operations and maintaining the
profitability in the backdrop of rising raw material prices and
interest rates shall be key rating sensitivities.
Recent Results
During April-August 2011, as per the provisional results, the
company reported an operating income of INR22.29 crore, operating
profitability of 12.8% and net profitability of 1.2%.
MIQ STEELS: CRISIL Assigns 'CRISIL D' Rating to INR135MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of MIQ Steels Pvt Ltd.
Facilities Ratings
---------- -------
INR50 Million Cash Credit CRISIL D (Assigned)
INR135 Million Term Loan CRISIL D (Assigned)
The rating reflects instances of delay by MIQ in servicing its
debt; the delays have been caused by the company's weak liquidity.
MIQ also has a weak financial risk profile, marked by high gearing
and weak debt protection metrics, small scale of operations, and
vulnerability of operating margin to volatility in prices of raw
materials. These rating weaknesses are partially offset by the
extensive experience of MIQ's promoters in the steel industry.
About MIQ Steels
Set up in 2004 by Mr. Mohammad Ikram and Mr. Mohammad Irfan, MIQ
manufactures thermo-mechanically treated bars at its facility in
Meerut (Uttar Pradesh). The company started commercial production
in March 2011. The plant has capacity to produce around 300 tonnes
per day.
NSL SUGARS: ICRA Assigns '[ICRA]B' Rating to INR240cr Bank Loans
----------------------------------------------------------------
ICRA has assigned '[ICRA]B' rating to the INR240 crores of fund
based bank facilities of NSL Sugars (Tungabhadra) Limited. ICRA
has also assigned rating of '[ICRA]A4' to INR100 crores of non-
fund based bank facilities of NSLTL.
The rating factors in project execution risks that are typical of
brown-field projects, including risks of time/cost overruns- the
risk is amplified by the significant size of the company's sugar
cum forward integration expansion project in relation to its
existing operations. Further, the rating also factors in the
permitting risks arising out of the pending key approvals for the
distillery project. Post commissioning, the project returns will
remain vulnerable to risks on availability of the key raw material
namely sugar-cane. ICRA has also factored-in the relatively high
financial risk profile of the company characterized by negative
net worth in past (arising mainly out of losses prior to
investment from NSL Sugars Limited, which had also resulted in the
company, formerly called Siruguppa Sugars and Chemicals Limited,
being declared sick in 2005-06). Significant debt funding of the
project is also likely to keep capital structure below average in
the near foreseeable future.
The rating is however supported by the experience of the promoter
company NSL Sugars Limited (rated [ICRA]BBB/Negative/A3+), which
has reported healthy operational performance of its sugar plant,
located in Mandya District of South Karnataka. The rating is also
supported by the fully integrated profile and the significant
physical progress achieved by the project. Going forward, the
company's ability to find a trading partner on attractive terms
for the power output from cogeneration unit at the earliest,
complete the distillery unit without any major time and cost
overrun, and its ability to source sufficient cane for optimum
utilization of its capacities and biomass to bridge fuel gaps for
the cogen plant will remain the key rating sensitivities.
About NSL Sugars
NSL Sugars (Tungabhadra) Ltd. was formerly known as M/s Siruguppa
Sugars & Chemicals Ltd (SSCL) which was incorporated in 1983. SSCL
took over the sugar factory in the name of M/s Kothari Sugars &
Chemicals Ltd. It was started with 1,500 tonnes per day (TCD)
crushing capacity at Desanur Village, Siruguppa Taluk, of Bellary
District in Karnataka during 1973-74. SSCL operated this plant
till the year 2001-02. The plant was closed till 2005-06 crushing
season due to financial problems. Continuing losses incurred by
the plant led to an erosion of net worth and subsequently SSCL
became a sick company and was referred to BIFR. NSL Sugars Ltd.
(rated [ICRA]BBB/Negative/A3+), a group company of the Nuziveedu
Group from Andhra Pradesh, in association with the management of
SSCL, resumed the operations of the company in 2006-07. NSLSL
infused the funds required to make the net worth positive and SSCL
was subsequently deregistered as sick unit in May 2010. NSLSL
acquired the company in June 2010 and it became the wholly owned
subsidiary of NSLSL.
NSLTL is currently in midst of upgrading the existing sugar plant
with a cane crushing capacity of 1500 Tons Crushed per Day (TCD)
to 3500 TCD plant along with 28 Mega Watt (MW) power cogeneration
plant and 45 Kilo-litres per day (KLPD) distillery at Bellary
District of Karnataka with a capital cost of INR263 crore. The
cogen plant is expected to commission in October 2011, sugar plant
by November 2011 and the distillery in Q4 of FY 2011-12.
NUTAN ISPAT: CRISIL Puts CRISIL B Rating on INR25MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Nutan Ispat and Power Pvt Ltd.
Facilities Ratings
---------- -------
INR210 Million Cash Credit CRISIL B/Stable (Assigned)
INR25 Million Term Loan CRISIL B/Stable (Assigned)
INR15 Million Standby Line CRISIL B/Stable (Assigned)
of Credit
INR40 Million Bank Guarantee CRISIL A4 (Assigned)
INR75 Million Letter of Credit CRISIL A4 (Assigned)
The ratings reflect NIPL's weak liquidity due to its working-
capital-intensive operations, vulnerability of its operating
margin to volatility in raw material prices, and its marginal
market share, with exposure to intense competition and to risks
related to geographical concentration in revenues. These rating
weaknesses are partially offset by NIPL's moderate financial risk
profile, marked by moderate net worth, and promoters' extensive
experience in the steel industry.
Outlook: Stable
CRISIL believes that NIPL will continue to face pressures on its
liquidity over the medium term on account of its working-capital-
intensive operations. The outlook may be revised to 'Positive' in
case of increase in NIPL's cash accruals, leading to improvement
in its liquidity. Conversely, the outlook may be revised to
'Negative' if NIPL's liquidity weakens further because of
lengthening of working capital cycle or lower-than-expected cash
accruals.
About Nutan Ispat
NIPL was promoted in 2002 by Mr. Pradeep Agrawal and his nephew,
Mr. Rahul Agrawal, to manufacture sponge iron. In 2004-05 (refers
to financial year, April 1 to March 31), the company started
manufacturing long steel products, such as mild-steel channels,
beams, and angles. In 2010-11, the company acquired a melting
division from a group concern to manufacture mild-steel ingots.
NIPL's manufacturing facility is based in Raipur (Chhattisgarh)
and has capacity of 60,000 tonnes per annum (tpa) for sponge iron
(primarily for captive consumption), 25,200 tpa for mild-steel
ingots, and 50,000 tpa of mild-steel angels, beams, and channels.
NIPL also undertakes jobwork for Steel Authority of India Ltd and
Jindal Steel and Power Ltd, for which it is provided raw material
for manufacturing long products.
NIPL reported a profit after tax (PAT) of INR5.6 million on net
sales of INR711 million for 2010-11, as against a PAT of INR1.6
million on net sales of INR302 million for 2009-10.
RAM DEV: CRISIL Reaffirms 'CRISIL BB+' Cash Credit Rating
---------------------------------------------------------
CRISIL's ratings on the bank facilities of Ram Dev Rice Pvt Ltd
continue to reflect RDRPL's established market position and
healthy growth prospects in the basmati rice industry.
Facilities Ratings
---------- -------
INR195 Million Cash Credit CRISIL BB+/Stable (Reaffirmed)
INR23.7 Million Rupee Term Loan CRISIL BB+/Stable (Reaffirmed)
INR265 Million Export Packing CRISIL A4+ (Reaffirmed)
Credit
These rating strengths are partially offset by RDRPL's below
average financial risk profile, marked by a high gearing and weak
debt protection metrics, large working capital requirements, and
exposure to risks related to volatility in raw material prices and
to adverse changes in government policy.
Outlook: Stable
CRISIL believes that RDRPL will continue to benefit over the
medium term from its improved position in the domestic market, and
its sustained growth in the exports market. CRISIL, however, also
believes that RDRPL's financial risk profile will remain
constrained, during this period, by its highly working-capital-
intensive operations, though the incremental working capital
requirements are expected to be partially funded by fresh equity
infusion. The outlook may be revised to 'Positive' if RDRPL's
capital structure improves considerably from the current levels.
Conversely, the outlook may be revised to 'Negative', if RDRPL's
capital structure deteriorates, or the company reports lower-than-
expected profitability and cash accruals.
Update
RDRPL has maintained its business risk profile with sales of
INR2.42 billion in 2010-11 (refers to financial year, April 1 to
March 31), more than CRISIL's expectations. The higher sales were
driven by significant increase in the domestic sales of the
company because of an increasing marketing network. Also, RDRPL's
operating margin at 9.8% was higher than CRISIL's expectations,
driven primarily by increasing proportion of higher-margin branded
products in the company's total sales. Proportion of branded
products sales in RDRPL's total sales increased to 35% in 2010-11
compared to 23% and 12% in 2009-10 and 2008-09, respectively.
RDRPL has maintained its financial risk profile with marginal
moderation in its capital structure. Its gearing increased to more
than 4.0 times as on March 31, 2011, against 3.2 times in the
previous year, because of incremental working capital
requirements. Though, RDRPL's gearing is expected to improve
slightly with expected infusion of equity of INR110.0 million in
the current year, it will remain high at over 3 times. However,
CRISIL derives comfort from the fact that most of the debt is
short term in nature and is primarily used to fund its liquid
inventory. The company's debt protection metrics continues to
remain below average with low interest coverage ratio of 1.4 times
for 2010-11. CRISIL expects the company to maintain its financial
risk profile at its current level in near to medium term.
For 2010-11, RDRPL reported a profit after tax (PAT) of INR44.0
million on net sales of INR242.0 billion, against a PAT of INR30.0
million on net sales of INR1.75 billion for 2009-10.
About Ram Dev
Set up in 1999 by Mr. Naresh Singla and Mr. Suresh Singla, RDRPL
mills, processes, and sells basmati rice in India and abroad. The
company's plant, at Daha in Karnal (Haryana) has milling and
sorting capacities of 32 tonnes per hour (tph) while its plant at
Hemda near Karnal has milling and sorting capacities of 6 tph. To
meet excess orders, the company engages other plants in the region
on job-work basis and also procures unsorted rice from small
mills, sorts the grains at its plant, and then exports them. RDRPL
sells its products under its own brands, Blue Horse, Golden Gate,
Shree Ramdev, Super Selwa, Daali, and Halley in the domestic
market and Al-Janadehriya, Al-Qusoor, and Al-Lulua in the
international market, and also under the brands of its customers.
SATISH SUGARS: ICRA Assigns '[ICRA]BB' Rating to INR180cr Loans
---------------------------------------------------------------
ICRA has assigned the rating of '[ICRA]BB' to the INR180 Crore
fund based facilities of Satish Sugars Limited. The outlook
assigned on the long-term rating is stable.
Rating Rationale
The rating is constrained by the high competitive intensity for
procurement of cane in the vicinity of SSL, given the increased
requirement of cane for the increased crushing and cogeneration
capacity for the whole sugar season going forward, high working
capital intensity of the business- due to inventory buildup during
the sugar season and limited flexibility for payments to cane
farmers, moderate financial profile as in leveraged capital
structure- because of debt tied up for multiple capex programmes
of the company over the last few years. The rating is also
constrained by the high regulatory intensity of the business and
vulnerability of the business to agro-climatic risks. However, the
rating has drawn comfort from forward integrated nature of the
operations with distillery and expanded cogeneration capacities,
locational advantages of the plant in North Karnataka given
satisfactory sugar recovery rates and experienced management with
good local standing. ICRA has also drawn comfort from the fact
that the capex investment plan of the company of the company has
stabilized and there may not be any major capex plan in the near
future. ICRA understands that, the television channel business
unit- which had resulted in net cash outgo in FY-2011 will not
affect the profitability of the sugar business going forward.
Given substantially high debt repayment for next two years- the
cane procurement for Sugar Year-2012 and stabilized operations of
the plant- which would result in healthy recovery rates- on a
regular basis would be critical for the liquidity profile of the
company and would be the key rating sensitivity.
About Satish Sugars
Satish Sugars Limited is situated in Gokak Tq. of Belgaum District
and operates a 7500 TCD sugar plant, 46 klpd distillery and 37 MW
Cogeneration unit. The company is promoted by Mr. Satish Jarkiholi
and started operations in 2000-01 as a Khandasari unit. Since then
the company has expanded substantially and in SY-2011 crushed
close to 11.86 lakh MT of Cane (136% increase YoY).
In FY-2011 SSL reported an Operating profit before interest and
depreciation of INR69.22 Cr and net profit of INR9.25 Cr on an
Operating income of INR324.20 Cr (138% increase YoY).
SOUNDARYA DECORATORS: ICRA Cuts Rating on INR0.5cr Loan to 'BB'
---------------------------------------------------------------
ICRA has revised the long-term rating outstanding on the INR0.50
crore term loan facilities, the enhanced fund based facilities of
INR22.00 crore and enhanced non fund based facilities of INR30.00
crore of Soundarya Decorators Private Limited to '[ICRA]BB' from
'LBBB-'. ICRA has assigned '[ICRA]BB' to the INR8.00 crore non
fund based facilities (sub limit) of SDPL.
ICRA has also revised the short-term rating outstanding on the
enhanced fund based facilities of INR8.00 crore and the INR10.00
crore non fund based facilities of the Company to '[ICRA]A4' from
'A3'. Further, ICRA has assigned '[ICRA]A4' to the INR7.50 crore
non fund based facilities (sub limit) of SDPL. The outlook on the
long term rating is stable.
The revision of ratings reflect the deterioration in financial
profile of the company characterized by decline in revenue,
operating loss and stretched gearing and coverage indicators in
2010-11. While the operations are working capital intensive,
significant deterioration in the receivables position of the
company during 2010-11 has led to strained liquidity position and
overdrawals in working capital facilities. Apart from significant
concentration in the IT / ITeS sector and consequently high
geographical concentration in the Bangalore and Chennai markets,
SDPL also faces intense competition from unorganized players in a
highly fragmented industry with limited entry barriers.
However, the ratings also consider the established presence of the
company, being one of the few organized players in the interior
decoration market and the high value addition to its products
through its integrated manufacturing facility, which results in
high gross margins for SDPL. Further, SDPL has client
relationships with reputed players in the IT / ITeS, hospitality,
realty and financial services sectors, with substantial addition
of new customers in the recent past. The ratings also factor in
the healthy order book of the company, equity infusion plans in
2011-12 and the anticipated tightening of credit period given to
the company's customers, although the effect of these on the
SDPL's cash flow position amidst significant capital expenditure
plans remains to be seen.
About Soundarya Decorators
Established in 1992 as a partnership firm by Mr. Balaji Rajaraman
and Mr. Sathyamurthy Durai and later converted into a private
limited company, Soundarya Decorators Private Limited (SDPL / "the
Company") is engaged in providing interior solutions to corporates
primarily in the IT / ITeS, financial services, realty and
hospitality sectors. With more than 18 years into the business,
the company manufactures wooden furniture (panels, jambs, doors,
table, storage units and other furniture based on client's
requirements) from its -100, 000 sq ft manufacturing facility in
Chennai. In addition to the wood related work which SDPL
specializes in, the company also offers an entire range of
services from false ceiling to flooring, partitions, doors,
electrical works, etc to its clients. SDPL has executed more than
100 projects in Chennai, Bangalore, Cochin, Noida, etc for
corporates such as CISCO Systems India Private Limited, HCL
Technologies Limited and Goldman Sachs Services Private Limited
and players in the realty / hospitality sectors including KGA
Hotels and Resorts Private Limited, Marg Limited and Mantri
Developers Private Limited to name a few.
Recent results (Unaudited)
SDPL recorded a net loss of INR18.6 crore on operating income of
INR66.4 crore in 2010-11 against a profit after tax (PAT) of
INR2.3 crore on operating income of INR78.1 crore during 2009- 10.
SPA CERAMIC: ICRA Cuts Rating on INR4.14cr Term Loan to '[ICRA]B+'
------------------------------------------------------------------
ICRA has downgraded the long term rating to '[ICRA]B+' from 'LBB-'
for INR4.14 crore term loans and INR1.00 crore cash credit
facility of Spa Ceramic Private Limited. ICRA has reaffirmed the
'[ICRA]A4' rating to the INR0.55 crore, short-term, non-fund
based, bank guarantee limits of SCPL.
The ratings take into account the limited track record of the
company and the extremely weak financial profile resulting from
losses in the first year of operations, high gearing levels and
weak coverage indicators. The ratings are also constrained by the
small size of operations, single product portfolio of the company
consisting of ceramic wall tiles making it difficult to market the
products to larger institutional players, the dependence of
operations and cash flows of the company on the performance of the
real estate industry which is the main consumer sector,
vulnerability of profitability to increasing prices of gas with
gas being the major fuel, low brand awareness, limited
distribution network, the likely pressure on sales realization due
to presence of established manufacturers and significant capacity
expansions in the Morbi region.
The ratings however have favorably considered the experience of
one of the promoters in the ceramic industry, the location
advantage enjoyed by SCPL giving it easy access to raw material as
well as the positive demand outlook in the long term for ceramic
tiles driven by steady revival of the real estate industry.
About Spa Ceramics
Spa Ceramics Pvt. Ltd. is engaged in the business of manufacturing
ceramic wall glazed tiles. The company was incorporated in
November 2009. It has its manufacturing facility located at Morbi,
Gujarat with reported manufacturing capacity of 18000 MTPA. SCPL
started its production in July 2010. The company currently has the
capability to manufacture wall tiles of sizes 12"x12", 12"x24",
12"x18"and 8"x24" with the current set of machineries. It has
established "Spa" and "Sparkle" as the brands for selling its
products in the markets.
Recent Results
During FY11, SCPL reported an operating income of INR5.64 Cr. and
profit after tax of INR-0.89 Cr.
SRI GANESH: CRISIL Puts 'CRISIL B+' Rating on INR90MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the cash
credit facility of Sri Ganesh Bottles Pvt Ltd.
Facilities Ratings
---------- -------
INR90.0 Million Cash Credit CRISIL B+/Stable (Assigned)
The rating reflects SGBPL's small scale of operations, moderate
customer concentration, low operating profitability and large
working capital requirements. The rating is also constrained by
the company's weak financial profile, marked by small net worth,
high gearing; further its liquidity position also remains weak.
These weaknesses are partially offset by SGBPL's established
market position as a supplier of broken glass to container glass
manufacturing players and recycled bottles to breweries in the
state of Andhra Pradesh (A.P.), and its good raw material
procurement capabilities.
Outlook: Stable
CRISIL believes that SGBPL will maintain its business risk profile
over the medium term supported by steady revenues and low albeit
steady operating profitability. The outlook may be revised to
'Positive' if the company reports significant increase in revenues
or improvement in profitability or substantial reduction in
working capital, benefitting its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if SGBPL
reports lower-than-expected business performance, larger-than-
expected working capital requirements, adversely affecting the
company's capital structure.
About Sri Ganesh
SGBPL was established as a partnership concern in 1967 by Mr. P.
Venkata (first generation entrepreneur). The firm was
reconstituted as a private limited company in 1998, when the
promoter's two sons, Mr. P. Narsing Rao and Mr. P. Ganesh, joined
the business. Presently, the day-to-day operations are managed by
the sons and their spouses.
SGBPL trades in broken glass and empty bottles. Sale of broken
glass accounted for 70% of its revenues, while remainder is from
the sale of empty bottles. The company sells broken glass to the
makers of glass containers and empty glass bottles to breweries.
The company has appointed agents in each district of A.P. to
collect the materials from the hawkers, which are cleaned and
stored in warehouses, which are taken on rent. The company has
rented four warehouses; one measuring 4.50 acres and three
measuring 1 acre each. With the current storage capacity, the
company can process maximum of INR60 million worth of raw
materials per month.
SGBPL's major customer is AGI Glaspack Ltd (second largest
container glass manufacturer in India), which accounts for 30-35%
of the company's total revenues. The company's sales are largely
restricted to Andhra Pradesh.
For 2010-11, SGBPL reported a profit after tax of INR2.92 million
(INR2.01 million for the previous year) on net sales of INR403.2
million (Rs.399.4 million).
T.C. TERRYTEX: ICRA Assigns '[ICRA]B+' Rating to INR59cr Term Loan
------------------------------------------------------------------
ICRA has assigned '[ICRA]B+' rating to INR59.00 crore term loans,
INR45.0 crore long term fund based and INR3.0 crore long term non-
fund based bank facilities of T.C. Terrytex Limited. ICRA has
also assigned an '[ICRA]A4' rating to INR11.00 crore short term
non-fund based bank facilities of TCTL.
The assigned ratings are constrained by the irregularity in the
debt servicing by the company in the recent past, which can be
attributed to its stretched liquidity as is reflected in its
consistently high working capital limits utilization. While these
irregularities have been corrected, however the company needs to
demonstrate the sustainability in the timely debt servicing,
especially in the backdrop of its modest debt coverage indicators
and increasing debt servicing obligations in near to medium term.
The rating is also constrained on account of high working capital
intensity of operations, which coupled with strong revenue growth
and moderate profitability had resulted in negative cash flow from
operations. The negative operational cash flows were primarily
funded through promoter's equity, which has also resulted in
improvement in the capital structure, as reflected in a decline in
gearing from over 3 times as on March 31, 2008, to around 2 times
as on March 31, 2011. Notwithstanding the decline in gearing
levels, the capital structure continues to remain leveraged, which
coupled with moderate profitability levels have resulted in modest
debt coverage indicators. The ratings favorably take into account
the integrated operations which results in operational
efficiencies as also reflected in an improvement in the operating
profitability over past years despite the rising yarn prices. The
ratings are also supported by the geographically diversified
export sales which mitigate the impact of demand volatility to
some extent. The ratings also take into account the experience of
more than three decades of the promoters in the textile industry
and their financial support through regular equity infusion in the
company. Going forward, the ability of the company to maintain its
profitability in the backdrop of volatile yarn prices, adverse
currency movements and weak demand outlook in its major markets
will be crucial for its credit profile. Further ability to improve
its liquidity by efficient management of working capital along
with timely debt servicing will remain key rating sensitivities.
Recent Results
During Q1 2011-12, as per the provisional results, TCTL reported
an operating income of INR42.05 crore and an operating profit
margin of 13.73%.
VENKATESWARA MODERN: Fitch Rates INR62.3-Mil. Cash Credit at 'B'
----------------------------------------------------------------
Fitch Rating has assigned India's Venkateswara Modern Rice Mills a
National Long-Term rating of 'Fitch B(ind)'. The Outlook is
Stable. Fitch has also assigned VMRM's INR62.5m cash credit limit
a 'Fitch B(ind)' rating.
VMRM's ratings are constrained by its low margins, high working-
capital intensity and high adjusted leverage (adjusted
debt/EBITDAR). Adjusted leverage including the capitalised value
of operating lease in the financial year ended March 2011 was 8.6x
(FY10: 8.5x). The ratings are further constrained by dependence
on the government for the procurement of paddy and sale of rice,
leaving little flexibility on pricing and stock.
A downgrade may result if VMRM's interest cover falls below 1.1x
on a sustained basis. Conversely, the rating may be upgraded if
its interest cover improves to 2.0x on a sustained basis.
VMRM is a partnership firm established in 2005. It owns a 3.9mtph
(80 quintal/hour) raw rice mill and has leased a 3.4mtph boiled
rice mill in Tanuku, West Godawari. For FY11, it reported
revenues of INR192.4 million (FY10: INR139.2 million), net income
of INR2.7 million (INR4.1 million) and an interest cover of 1.4x
(1.9x). Rice mills in Andhra Pradesh procure paddy from farmers
at minimum support price fixed by the central government and
supply 75% of the rice produced to Food Corporation of India and
Andhra Pradesh Civil Supply Corporation. The remaining 25% is
sold in the open market with at least 50% being sold within Andhra
Pradesh.
=========
J A P A N
=========
DTC LIMITED: Fitch Affirms Rating on 46 Tranches
------------------------------------------------
Fitch Ratings has affirmed the ratings of 46 tranches from eight
DTC transactions. The transactions are securitisations of
mortgage loans backed by multi-family apartment properties.
The affirmations reflect Fitch's view that available credit
enhancement (CE) levels are sufficient to support the current
ratings. Principal redemptions of the rated notes from scheduled
amortisation and prepayments have resulted in the growth of all CE
levels since closing. For each of the eight transactions, the
loan pool performance has been stable with limited delinquencies
and defaults to date.
Based on research on asking rents of properties and master lease
data, Fitch considers that cash flow performance of the underlying
properties is moderately below the agency's initial assumption due
to a decline in rent levels. However, this is mitigated by the
improved CE levels and adequate debt service coverage.
Payments for the class N notes issued by DTC Seven Funding Limited
and DTC Eight Funding Limited are mainly derived from excess
spread and prepayment fees. Prepayment for these deals has been
faster than Fitch's initial expectations, leading to the
compression of excess spread. However, this risk is mitigated by
the stable performance of the loan pools.
In DTC Three Funding Limited and DTC Eight Funding Limited, there
has been no replacement to Lehman Brothers Japan Inc. as initial
advancing agent since its bankruptcy in September 2008. Fitch
maintains its view that the any liquidity risk is mitigated by the
available cash reserve, taking into account the expected stable
performance of the loan pools, the amortisation of the notes and
the low interest rate environment in Japan. This is reflected in
the Stable Outlook. However, a significant increase in interest
rates may lead to negative rating action although Fitch does not
expect this to happen in the foreseeable future.
Fitch continues to monitor the ongoing negotiations among the
transaction parties in respect of the provision of the performance
data of the underlying properties.
The full list of rating actions is as follows.
DTC One Special Purpose Company:
-- JPY185MM* Class A-1 notes affirmed at 'AAAsf'; Outlook Stable
-- JPY1,627MM* Class A-2 notes affirmed at 'AAAsf'; Outlook
Stable
-- JPY7MM* Class A-3 notes affirmed at 'AAAsf'; Outlook Stable
-- JPY320MM* Class B notes affirmed at 'AAsf'; Outlook Stable
-- JPY180MM* Class C notes affirmed at 'Asf'; Outlook Stable
-- JPY320MM* Class D notes affirmed at 'BBBsf'; Outlook Stable
-- JPY350MM* Class E notes affirmed at 'BBsf'; Outlook Stable
DTC Two Funding Limited:
-- JPY2,792MM* Class A notes affirmed at 'AAAsf'; Outlook Stable
-- JPY470MM* Class B notes affirmed at 'AAsf'; Outlook Stable
-- JPY280MM* Class C notes affirmed at 'Asf'; Outlook Stable
-- JPY380MM* Class D notes affirmed at 'BBBsf'; Outlook Stable
-- JPY850MM* Class E notes affirmed at 'BBsf'; Outlook Stable
-- JPY3,922MM* Class J notes affirmed at 'BBBsf'; Outlook Stable
DTC Three Funding Limited:
-- JPY3,448MM* Class A-1 notes affirmed at 'AAAsf'; Outlook
Stable
-- JPY2,353MM* Class A-2 notes affirmed at 'AAAsf'; Outlook
Stable
-- JPY870MM* Class B notes affirmed at 'AAsf'; Outlook Stable
-- JPY540MM* Class C notes affirmed at 'Asf'; Outlook Stable
-- JPY690MM* Class D notes affirmed at 'BBBsf'; Outlook Stable
-- JPY776MM* Class E notes affirmed at 'BBsf'; Outlook Stable
DTC Four Funding Limited:
-- JPY5,586MM* Class A-1 notes affirmed at 'AAAsf'; Outlook
Stable
-- JPY2,793MM* Class A-2 notes affirmed at 'AAAsf'; Outlook
Stable
-- JPY703MM* Class B notes affirmed at 'AAsf'; Outlook Stable
-- JPY703MM* Class C notes affirmed at 'Asf'; Outlook Stable
-- JPY703MM* Class D notes affirmed at 'BBBsf'; Outlook Stable
-- JPY492MM* Class E notes affirmed at 'BBsf'; Outlook Stable
DTC Five Funding Limited:
-- JPY8,500MM* Class A notes affirmed at 'AAAsf'; Outlook Stable
-- JPY713MM* Class B notes affirmed at 'AAsf'; Outlook Stable
-- JPY713MM* Class C notes affirmed at 'Asf'; Outlook Stable
-- JPY713MM* Class D notes affirmed at 'BBBsf'; Outlook Stable
-- JPY523MM* Class E notes affirmed at 'BBsf'; Outlook Stable
DTC Six Funding Limited:
-- JPY11,793MM* Class A notes affirmed at 'AAAsf'; Outlook
Stable
-- JPY969MM* Class B notes affirmed at 'AAsf'; Outlook Stable
-- JPY1,018MM* Class C notes affirmed at 'Asf'; Outlook Stable
-- JPY800MM* Class D notes affirmed at 'BBBsf'; Outlook Stable
-- JPY731MM* Class E notes affirmed at 'BBsf'; Outlook Stable
DTC Seven Funding Limited:
-- JPY14,178MM* Class A notes affirmed at 'AAAsf'; Outlook
Stable
-- JPY1,200MM* Class B notes affirmed at 'AAsf'; Outlook Stable
-- JPY1,060MM* Class C notes affirmed at 'Asf'; Outlook Stable
-- JPY890MM* Class D notes affirmed at 'BBBsf'; Outlook Stable
-- JPY473MM* Class N notes affirmed at 'BBBsf'; Outlook Stable
DTC Eight Funding Limited:
-- JPY21,145MM* Class A notes affirmed at 'AAAsf'; Outlook
Stable
-- JPY1,780MM* Class B notes affirmed at 'AAsf'; Outlook Stable
-- JPY1,620MM* Class C notes affirmed at 'Asf'; Outlook Stable
-- JPY1,210MM* Class D notes affirmed at 'BBBsf'; Outlook Stable
-- JPY240MM* Class E notes affirmed at 'BBsf'; Outlook Stable
-- JPY1,259MM* Class N notes affirmed at 'BBBsf'; Outlook Stable
*as of October 7, 2011
=====================
P H I L I P P I N E S
=====================
BANCO FILIPINO: CA Junks Order for BSP Release of PHP25-Bil. Aid
----------------------------------------------------------------
Benjamin B. Pulta at The Daily Tribune reports that the Court of
Appeals (CA) has nullified orders issued by a Makati City court
ordering the Bangko Sentral ng Pilipinas (BSP) and the Monetary
Board to release PHP25 billion in assistance to Banco Filipino
Savings and Mortgage Bank.
The Daily Tribune relates that in a decision, Associate Justice
Agnes Reyes-Carpio, the CA's Special 13th Division granted BSP and
MB's petition seeking to annul the orders issued by Judge Joselito
Villarosa, presiding judge of Branch 66, Makati RTC, on Oct. 28,
2010 and Nov. 18, 2010. Associate Justices Manuel Barrios and
Juan Enriquez Jr. concurred.
According to the report, the Makati RTC, in its Oct. 28, 2010
order, issued a temporary restraining order enjoining the BSP and
MB from "employing acts inimical to the enforcement of Banco
Filipino's approved business plan" and from enforcing other
regulatory measures that are intended to coerce the bank in
agreeing to withdraw its suits against the BSP and MB.
In its Nov. 18, 2010 order, the Tribune recalls, the Court granted
Banco Filipino's application for a writ of preliminary mandatory
and preventive injunction and directed BSP and MB to immediately
implement the bank's business plan by releasing its PHP25 billion
financial assistance package and other regulatory reliefs without
delay.
The appellate court, however, held that the injunction was issued
with grave abuse of discretion considering that it was issued in
violation of law and public policy, the report states.
The Daily Tribune says the CA noted that the impropriety of
issuing a TRO against BSP and the MB in the exercise of
regulatory, had been settled by the Supreme Court in BSP v.
Anotnio-Valenzuela where it held that the issuance by the RTC of
writs of preliminary injunction is an unwarranted interference
with the powers of MB.
"For lack of jurisdiction, the Regional Trial Court, Branch 66,
Makati City, is directed to stop and desist from continuing with
the proceedings of Civil Case No. 10-1042, other hand to dismiss
the said case," the CA ruled, according to The Daily Tribune.
Likewise, the report says the appellate court agreed with the BSP
and MB that there was violation of their rights to due process as
the TRO was issued by Judge Villarosa despite the lack of evidence
supporting the same, as well as Banco Filipino's failure to post a
bond.
"We agree with petitioner. It appears that there was an undue
haste in issuing the assailed order that public respondent missed
the fact that it failed to fix bond, and only after the approval
of the required bond should a writ of preliminary injunction be
issued," CA said.
The Daily Tribune notes that the CA did not give credence to the
contention of Banco Filipino that it merely relied on the Supreme
Court's decision dated Dec. 11, 1991, as its basis in seeking the
issuance of a TRO.
The TRO and the injunctive order arose from a petition filed by
Banco Filipino with the Makati RTC for the release of the PHP25
billion worth of financial assistance from the BSP, the Daily
Tribune discloses.
In their petition, the report discloses, BF claimed that they are
entitled to the release of the financial assistance based on the
1991 decision of the SC which ordered the reopening and
reorganization of BF from its closure way back in 1985.
According to the report, the CA said that based on its scrutiny of
the said SC decision, there is nothing in it that directed the BSP
and MB to grant financial assistance and other regulatory reliefs
to the bank.
"To be sure, the Supreme Court did not intend to dictate how Banco
Filipino should be reorganized and what petitioners should do
under the premises in the process of reorganizing Banco Filipino,"
the CA added.
The CA had denied the petition filed by Banco Filipino
stockholders to stop the implementation of MB Resolution No. 372-A
issued on March 17, 2011 that placed the savings bank under
receivership and stopped its operations nationwide, the report
adds.
About Banco Filipino
Banco Filipino Savings & Mortgage Bank --
http://www.bancofilipino.com/-- was organized in 1964, offers
full domestic banking services, which are five main types,
namely: cash services; commercial services; loans; money market
services; and trust services. It started operations on July 9,
1964.
Bangko Sentral ng Pilipinas closed Banco Filipino after the bank's
liabilities overwhelmed its assets by PHP8.4 billion, and then
filed charges against the bank's directors and officials. BSP
also placed the bank under the receivership of the state-run
Philippine Deposit Insurance Corp. to provide immediate relief to
the bank's 177,652 depositors.
=================
S I N G A P O R E
=================
AED SERVICES: Court Enters Judicial Management Order
----------------------------------------------------
The High Court of Singapore entered an order on Sept. 30, 2011, to
place Aed Services Pte Ltd under judicial management.
The applicant's solicitors are Rajah & Tann LLP.
ASIA INFRASTRUCTURE: Creditors' Proofs of Debt Due Nov. 4
--------------------------------------------------------
Creditors of Asia Infrastructure Project Development Pte Ltd,
which is in voluntary liquidation, are required to file their
proofs of debt by Nov. 4, 2011, to be included in the company's
dividend distribution.
The company's liquidator is:
Jason Kardachi
c/o Borrelli Walsh Pte Ltd
36 Robinson Road
#14-04 City House
Singapore 068877
ASIAN SECURITY: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on Sept. 30, 2011, to
wind up the operations of Asian Security Corporation (S) Pte Ltd.
S.L. Prime Properties Pte Ltd filed the petition against the
company.
The company's liquidator is:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #05-11/#06-11
Singapore 069118
CONTI-LINES ASIA: Creditors' Proofs of Debt Due Nov. 6
-------------------------------------------------------
Creditors of Conti-Lines Asia Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by Nov. 6,
2011, to be included in the company's dividend distribution.
The company's liquidators are:
Chee Yoh Chuang
Abuthahir Abdul Gafoor
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
EASTERN BULK: Creditors' Proofs of Debt Due Nov. 8
--------------------------------------------------
Creditors of Eastern Bulk Carriers Singapore Pte Ltd, which is in
voluntary liquidation, are required to file their proofs of debt
by Nov. 8, 2011, to be included in the company's dividend
distribution.
The company's liquidators are:
Sim Guan Seng
Victor Goh
C/o Baker Tilly TFW LLP
15 Beach Road
#03-10 Beach Centre
Singapore 189677
EVS SINGAPORE: Creditors' Proofs of Debt Due Nov. 8
----------------------------------------------------
Creditors of EVS Singapore Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by Nov. 8,
2011, to be included in the company's dividend distribution.
The company's liquidators are:
Leow Quek Shiong
Leong Hon Mun Peter
c/o BDO LLP
21 Merchant Road
#05-01 Royal Merukh S.E.A. Building
Singapore 058267
INDELBERG TRADING: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Singapore entered an order on Sept. 30, 2011, to
wind up the operations of Indelberg Trading & Services Pte Ltd.
PT Timah (Persero) TBK filed the petition against the company.
The company's liquidator is:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #05-11/#06-11
Singapore 069118
JAZCO INTERNATIONAL: Court Enters Wind-Up Order
-----------------------------------------------
The High Court of Singapore entered an order on Sept. 30, 2011, to
wind up the operations of Jazco International Trading Pte Ltd.
United Overseas Bank Limited filed the petition against the
company.
The company's liquidator is:
The Official Receiver
45 Maxwell Road
#06-11 The URA Centre (East Wing)
Singapore 069118
MEYER DEVELOPMENT: Members' Final Meeting Set for Nov. 4
---------------------------------------------------------
Members of Meyer Development Pte Ltd will hold their final meeting
on Nov. 4, 2011, at 10:00 a.m., at 96 Robinson Road #10-01 SIF
Building, in Singapore 068899.
At the meeting, Akber Ali S/O Thajudeen, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
===============
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 ***