/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/111102.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, November 2, 2011, Vol. 14, No. 217 Headlines A U S T R A L I A ENTERPRISE IT: Wins Reprieve From Liquidation RIVIERA: Continues to Await for Potential Buyers C H I N A WINSWAY COKING: Moody's Says 'Ba3' CFR Unaffected by Coal Deal H O N G K O N G ACNIELSEN INTERNATIONAL: Commences Wind-Up Proceedings AGB NIELSEN: Commences Wind-Up Proceedings AIRCREW SERVICES: Members' Final Meeting Set for Nov. 29 AIRCREW SERVICES (UK): Members' Final Meeting Set for Nov. 29 ASIAN COMMUNICATING: Members' Final Meeting Set for Nov. 28 AUSTRIAN GAMING: Members' Final Meeting Set for Dec. 1 BONNY NICE: Members' Final Meeting Set for Nov. 29 CANTRONIC INDUSTRIES: Placed Under Voluntary Wind-Up Proceedings CHARTERMATE TECHNOLOGIES: Creditors' Meeting Set for Nov. 28 CHITLINK ELECTRONIC: Creditors' Meeting Set for Nov. 4 DG FINANCIAL: Creditors' Proofs of Debt Due Nov. 30 EASY WELL: Members' Final General Meeting Set for Nov. 28 EDEN'S NATURAL: Creditors' Meeting Set for Nov. 15 ELCOTEQ ASIA: Creditors' Proofs of Debt Due Nov. 30 EMERGING SOVEREIGN: Creditors' Proofs of Debt Due Nov. 28 SOFT-TREK MEDIA: Creditors Get 2.2124% Recovery on Claims I N D I A B.B. ASIA: ICRA Assigns '[ICRA]BB+' Rating to INR5cr Facilities DYMES PHARMACHEM: ICRA Assigns [ICRA]BB Rating to INR3.05cr Loan HIND MOTORS: ICRA Reaffirms '[ICRA]BB' Rating on INR5.5cr LT Loan INNOVA CHILDREN'S: ICRA Places '[ICRA]B+' Rating to INR15cr Loan KUNDANMAL ROOPCHAND: ICRA Rates INR7.5cr Loans at '[ICRA]BB-' NINANIYA ESTATES: ICRA Rates INR50cr Bank Loan at '[ICRA]B' PETRO PLAST: ICRA Assigns '[ICRA]BB+' Rating to INR15cr Loan RAIPUR ROTOCAST: ICRA Reaffirms '[ICRA]BB+' on INR7.5cr Bank Loan RAJ CHEM: ICRA Assigns '[ICRA]BB' Rating to INR7cr Capital Loans REGALIA BUILDTECH: ICRA Assigns '[ICRA]BB' Rating to INR50cr Loan SSPDL LIMITED: ICRA Reaffirms '[ICRA]BB+' Rating on INR8cr Loan VICTOR ELECTRODES: ICRA Assigns '[ICRA]D' to INR5.5cr Loan * INDIA: Government to Restructure Loans for Textiles Sector J A P A N AGC TRUST: Moody's Lowers Rating of Class B Notes to 'Caa3' ASAHI LIFE: S&P Withdraws 'BB-' Counterparty Credit Rating J-CORE 13 TRUST: Moody's Cuts Rating on Class C Notes to 'B1' JLOC37: Moody's Lowers Rating on Class D1/D2 Notes to 'C' JUROKU BANK: S&P Withdraws 'B' Bank Fundamental Strength Rating TOKYO ELECTRIC: Government Likely to Approve Financial Assistance N E W Z E A L A N D HIBERNIAN CREDIT: NZ$1.2MM Theft Adversely Affect Credit Union HIGHCLIFF ROAD: PricewaterhouseCoopers Appointed as Liquidator NATHANS FINANCE: Former Auditor's Bid May Derail NZ$66MM Claim S I N G A P O R E INFOWAVE PTE: Court Enters Wind-Up Order LANDMARK CHEMICALS: Creditors' Proofs of Debt Due Nov. 28 MAVERIC LTD: Creditors' Proofs of Debt Due Nov. 28 SPS ELECTRIC: Court to Hear Wind-Up Petition Nov. 11 STYLE EVOLUTION: Court to Hear Wind-Up Petition Nov. 11 X X X X X X X X * S&P: One U.S.-Based Default Last Week; 2011 Total at 36 * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= ENTERPRISE IT: Wins Reprieve From Liquidation --------------------------------------------- Howard Jones at The Border Mail reports that Enterprise IT Global won a reprieve from liquidation Monday with some creditors pushing to keep the firm alive. The Border Mail relates that creditors, including several former employees, voted to defer a decision on the firm's future until November 16 to see whether the proposed scheme is viable, though an alternative sale of the business to other parties hasn't been ruled out. According to the Border Mail, administrator Andrew Cummins, of BRI Ferrier, in a report dated October 21, recommended liquidation of Enterprise IT (Australia) and its parent, Enterprise IT Global, but at Monday's meeting, he called instead for a deferral. The report notes that Mr. Cummins said this would give the business a chance to survive with some jobs saved and would increase the chance of workers and unsecured creditors getting back more money than a liquidation. One of the remaining 17 workers employed by the business welcomed the deferral, the report relays. Director Jarrod Case and his fellow directors put the companies into voluntary administration last month. The Border Mail says former Dragnet owner Chris Abbott's business was said to be owed AUD1.4 million for the April sale of Dragnet to Enterprise IT Global for AUD2.25 million. Mr. Abbott supported the deferral so that he and other parties can discuss with Mr. Cummins the plan to place the entire Enterprise IT business into a "deed of company arrangement," the report relates. Mr. Cummins said the next two weeks would determine whether that could be done, but he also said other parties were interested in buying the business and wouldn't rule out a sale to one of them, according to The Border Mail. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 3, 2011, SmartCompany said Enterprise IT Global had collapsed into administration despite a number of key acquisitions and partnerships during the past 12 months. The Australian Securities and Investments Commission said that Enterprise IT Australia has also been placed into administration, with BRI Ferrier acting as administrator for both companies. Enterprise IT Global is a New South Wales information technology company. RIVIERA: Continues to Await for Potential Buyers ------------------------------------------------ Lucy Ardern at goldcoast.com.au reports that a buyer seems no nearer for luxury boat builder Riviera than when it was placed in receivership in May 2009, but the form of the sale does seem to be taking shape. According to the report, Riviera chief operating officer Paul Lyons confirmed Friday a variety of ownership models were on the table for potential buyers and several of them included ANZ bank and the Bank of Scotland retaining a share of the company. "No option is locked in," goldcoast.com.au quotes Mr. Lyons as saying. "We don't know who might buy it and in what form the sale might happen. But the banks may retain their involvement." The report relates that Riviera spokesman Stephen Milne indicated possible partners for the business, both in Australia and overseas, had been approached by receiver Chris Campbell, of Deloitte, in the past 2 1/2 years. While it is not known what asking price Deloitte has been instructed to secure, ANZ and the Bank of Scotland were owed AUD250 million when the company went into receivership in May 2009, according to the report. It is believed the debt was reduced by about AUD100 million in the first 12 months and now stands at about AUD150 million, the report discloses. According to goldcoast.com.au, Mr. Lyons said the banks were not only focused on how much money the potential buyer was willing to pay and would also weigh up the party's long-term plan for Riviera. "I don't believe the receivers want Riviera to shut down," the report quotes Mr. Lyons as saying. "I think they have a genuine interest in the business." Mr. Lyons, as cited by goldcoast.com.au, said the management team, which was running the business following the departure of chief executive John Anderson in August, was focused on improving Riviera's profits to make it a more attractive to potential buyers. As reported in the Troubled Company Reporter-Asia Pacific on May 12, 2009, Riviera was placed into voluntary receivership. Deloitte partners Chris Campbell, Vaughan Strawbridge and Richard Hughes were appointed receivers and managers of Riviera. According to the Brisbane Times, Mr. Campbell said the company's sales over the past 12 months had been "significantly impacted" by the global financial crisis. It was proposed to sell Riviera as a going concern after a restructuring of the company, he said. Riviera, which was released from voluntary administration in June last year, now has a combined workforce of about 400, including contractors, goldcoast.com.au discloses. At its peak, the company employed about 1,200 staff, goldcoast.com.au notes. Riviera -- http://www.riviera.com.au/-- is a luxury boat builder based in Australia. ========= C H I N A ========= WINSWAY COKING: Moody's Says 'Ba3' CFR Unaffected by Coal Deal -------------------------------------------------------------- Moody's Investors Services sees no immediate impact on Winsway Coking Coal Holdings Limited's Ba3 corporate family rating and B1 senior unsecured bond rating from its recent agreement on another coal supply contract with Mongolyn Alt LLC. The outlook for the ratings is stable. Ratings Rationale Under the agreement, MAK will supply at least 3 million tonnes of coking coal per annum to Winsway from 2012 for 10 years. Price will be determined quarterly based on market prices. "Securing supply on a long-term basis is credit positive and is consistent with Winsway's business strategy, and which Moody's has already factored into the ratings," says Ken Chan, a Vice President and Senior Analyst at Moody's, adding, "With the new contract in place, around 70% of Winsway's targeted Mongolian coal procurement volume in 2012 will be backed by long-term contracts, up from below 50% currently." Furthermore, Moody's views the new contract as an extension of Winsway's existing business relationship with MAK, which supplied about 1.2 million tonnes to the company in 2010. In terms of the carrying capacity of its railway, Winsway can transport around 8 million tonnes annually. Therefore, it will need to invest further in rolling stock to support total projected volume of around 10 million tonnes in 2012. Winsway's business growth remains supported by its healthy liquidity position -- cash on hand of HK$5.8 billion as of June 2011 and short-term debt of HK$572 million. Such a strong position is partially attributable to the presence of unused proceeds from its issuance of US$500 million in bonds early this year. Winsway Coking Coal Holdings Limited's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside Winsway Coking Coal Holdings Limited's core industry and believes Winsway Coking Coal Holdings Limited's ratings are comparable to those of other issuers with similar credit risk. Winsway Coking Coal Holdings is one of the largest suppliers of coking coal for China and other international markets. It also processes coal and provides logistic services to its customers, mainly Chinese steel makers and coke plants, through its integrated coking coal supply chain in China. It listed on the Hong Kong Stock Exchange in September 2010 and is 49.7% controlled by founder and CEO Wang Xingchun. ================ H O N G K O N G ================ ACNIELSEN INTERNATIONAL: Commences Wind-Up Proceedings ------------------------------------------------------ Members of Acnielsen International Research (Hong Kong) Limited, on Oct. 20, 2011, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Rainier Hok Chung Lam Anthony David Kenneth Boswell 20th Floor, Prince's Building Central, Hong Kong AGB NIELSEN: Commences Wind-Up Proceedings ------------------------------------------ Members of AGB Nielsen Media Research (Hong Kong) Limited, on Oct. 20, 2011, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Rainier Hok Chung Lam Anthony David Kenneth Boswell 20th Floor, Prince's Building Central, Hong Kong AIRCREW SERVICES: Members' Final Meeting Set for Nov. 29 -------------------------------------------------------- Members of Aircrew Services Limited will hold their final meeting on Nov. 29, 2011, at 10:00 a.m., at 33rd Floor, One Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, James Edward Hughes-Hallett and Liu Sui Yuk, the company's liquidators, will give a report on the company's wind- up proceedings and property disposal. AIRCREW SERVICES (UK): Members' Final Meeting Set for Nov. 29 ------------------------------------------------------------- Members of Aircrew Services (UK) Limited will hold their final meeting on Nov. 29, 2011, at 10:30 a.m., at 33rd Floor, One Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, James Edward Hughes-Hallett and Liu Sui Yuk, the company's liquidators, will give a report on the company's wind- up proceedings and property disposal. ASIAN COMMUNICATING: Members' Final Meeting Set for Nov. 28 ----------------------------------------------------------- Members of Asian Communicating Solutions Limited will hold their final meeting on Nov. 28, 2011, at 10:00 a.m., at Suite 2414, Level 24, Two Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, Jean-Francois Archer, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. AUSTRIAN GAMING: Members' Final Meeting Set for Dec. 1 ------------------------------------------------------ Members of Austrian Gaming Industries Hong Kong Limited will hold their final meeting on Dec. 1, 2011, at 2:30 p.m., at the Liquidator's office at Unit A, 5/F, Amtel Building, 144-148 Des Voeux Road Central, in Hong Kong. At the meeting, Ha Yue Fuen Henry, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. BONNY NICE: Members' Final Meeting Set for Nov. 29 -------------------------------------------------- Members of Bonny Nice Industries Limited will hold their final general meeting on Nov. 29, 2011, at 10:00 a.m., at Level 28, Three Pacific Place, 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. CANTRONIC INDUSTRIES: Placed Under Voluntary Wind-Up Proceedings ---------------------------------------------------------------- At an extraordinary general meeting held on Oct. 19, 2011, creditors of Cantronic Industries Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Kennic Lai Hang Lui Yuen Tsz Chun Frank 5th Floor, Ho Lee Commercial Building 38-44 D'Aguilar Street Central, Hong Kong CHARTERMATE TECHNOLOGIES: Creditors' Meeting Set for Nov. 28 ------------------------------------------------------------ Creditors of Chartermate Technologies (Hong Kong) Limited will hold their meeting on Nov. 28, 2011, at 11:00 a.m., for the purposes provided for in Sections 241, 242, 243, 244, 255A and 283 of the Companies Ordinance. The meeting will be held at Unit A, 5/F, CKK Commercial Centre, at 289 Hennessy Road, Wanchai, in Hong Kong. CHITLINK ELECTRONIC: Creditors' Meeting Set for Nov. 4 ------------------------------------------------------ Creditors of Chitlink Electronic International Limited will hold their meeting on Nov. 4, 2011, at 11:00 a.m., for the purposes provided for in Sections 241, 242, 243, 244, 251 and 255A of the Companies Ordinance. The meeting will be held at Room 2301, 23/F, Ginza Square 565-567 Nathan Road, Kowloon, in Hong Kong. DG FINANCIAL: Creditors' Proofs of Debt Due Nov. 30 --------------------------------------------------- Creditors of DG Financial Consulting Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Nov. 30, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 21, 2011. The company's liquidator is: Lam Wai Hay Room 2301, 23/F Ginza Square 565-567 Nathan Road Yaumatei, Kowloon Hong Kong EASY WELL: Members' Final General Meeting Set for Nov. 28 --------------------------------------------------------- Members of Easy Well International Trading Limited will hold their final general meeting on Nov. 28, 2011, at 10:00 a.m., at Room 1410, Harbour Centre, at 25 Harbour Road, Wanchai, in Hong Kong. At the meeting, Poon Wai Hung Richard, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. EDEN'S NATURAL: Creditors' Meeting Set for Nov. 15 -------------------------------------------------- Creditors of Eden's Natural Synergy (HK) Limited will hold their meeting on Nov. 15, 2011, at 3:30 p.m., for the purposes provided for in Sections 241, 242, 243, 244 and 255A of the Companies Ordinance. The meeting will be held at Units A & B, 12/F, Tin's Centre, at Block 1, 3 Hung Cheung Road, Tuen Mun, New Territories, in Hong Kong. ELCOTEQ ASIA: Creditors' Proofs of Debt Due Nov. 30 --------------------------------------------------- Creditors of Elcoteq Asia Limited, which is in creditors' voluntary liquidation, are required to file their proofs of debt by Nov. 30, 2011, to be included in the company's dividend distribution. The company's liquidators are: Lai Kar Yan (Derek) Darach E. Haughey 35th Floor, One Pacific Place 88 Queensway, Hong Kong EMERGING SOVEREIGN: Creditors' Proofs of Debt Due Nov. 28 --------------------------------------------------------- Creditors of Emerging Sovereign Group Hong Kong Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Nov. 28, 2011, to be included in the company's dividend distribution. The company's liquidator is: Philip Brendan Gilligan 7th Floor, Alexandra House 18 Chater Road Central, Hong Kong SOFT-TREK MEDIA: Creditors Get 2.2124% Recovery on Claims --------------------------------------------------------- Soft-trek Media Limited, which is in liquidation, will declare the first ordinary dividend to its creditors on or after Nov. 4, 2011. The company will pay 2.2124% for ordinary claims. The company's liquidator is: Osman Mohammed Arab 29/F, Caroline Centre Lee Gardens Two 28 Yun Ping Road Hong Kong ========= I N D I A ========= B.B. ASIA: ICRA Assigns '[ICRA]BB+' Rating to INR5cr Facilities --------------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]BB+' to the INR5 crore fund based working capital facilities of B.B. Asia Impex Private Limited. The outlook on the rating is stable. ICRA has also assigned a short term rating of '[ICRA]A4+' to the INR10 crore non-fund based bank limits of BBAIPL. The ratings factor in the strong and established supplier- customer network; considerable experience of the promoters in the import and trading of polymers; and moderate gearing levels of the company. The ratings further factor in the cost advantage the company derives from the customs authorities due to its green channel status. The ratings also consider the favorable outlook for the company's revenues, in view of the favorable demand outlook for polymers and chemicals in India; and the large supply deficit leading to increase in import demand. The ratings, though, are constrained by the constant change in the product mix and volumes traded; highly volatile prices of the traded commodities and the thin margins leading to low coverage parameters and heavy dependence on imports which exposes BBAIPL to regulatory risk such as levy of anti dumping duty and withdrawal of DEPB benefit. The ratings are also impacted by the high working capital intensity of the business and the weak cash flows. About B.B. Asia B.B. Asia Impex Private Limited was started in the late 90s as a partnership firm and was incorporated in August 2005. The company dealt in marine exports, steel trading and also trading in items like CFL lamps, stationery, electronic goods etc. in the recent years though, the company has shifted its focus to the trading of polymers and chemicals. The company has a skilled workforce of about 20 people involved in the marketing and operational aspects. Petro group of companies are mainly involved in the trading of imported and domestic polymer and chemical products. Petro Plast Industries Limited and BB Asia Impex trade largely in imported plastic raw materials and chemicals. Raj Chem Plast is the Del Credere Agent (DCA) for GAIL's petrochemical products in Tamil Nadu and Pondicherry. Other companies that the promoters own are- Petroplast India Limited, which is the DCA for HPL, and Indus valley Housing which is a JV owning land banks and involved in real estate and housing development. DYMES PHARMACHEM: ICRA Assigns [ICRA]BB Rating to INR3.05cr Loan ---------------------------------------------------------------- ICRA has assigned '[ICRA]BB' rating to INR3.05 crore fund based facilities, INR0.76 crore term loans and INR0.94 crore unallocated facilities of Dymes Pharmachem Limited. The outlook on the long-term rating is Stable. ICRA has also assigned '[ICRA]A4' rating to INR1.25 crore letter of credit facility of DPL. The ratings assigned reflect Dymes Pharmachem Limited's moderate scale of operations, high competitive intensity of the industry which coupled with increasing raw material pressures has exerted pressure on DPL's profitability and this situation is unlikely to change in the medium term. The ratings also factor in moderate debt protection indicators as reflected by Net Cash Accruals/Total Debt (NCA/TD) of 19% and Interest coverage of 2.42 times in FY2011. ICRA has also taken into consideration DPL's high customer concentration risk as around 90% of its sales are to single customer Dr. Reddy's Laboratories Ltd. Although this risk is partly offset by long track record of supplies to DRL and the latter's strong standing in the pharma industry. However, ICRA draws comfort from the long track record of DPL's promoters in the pharmaceutical industry, its comfortable capital structure with gearing at 0.65 times as on March 31, 2011, and favorable demand prospects for DPL's products, especially, Thieno (3,2-C), which is used in the manufacture of Clopidogrel bisulphate intermediate. About Dymes Pharmachem Dymes Pharmachem Limited has been formed by takeover of 'Dymes Exports Limited' in 2005 and is involved in manufacturing of Active Pharmaceutical Ingredients (API) and its intermediates. The company has been incorporated by Mr. V. Adinarayana and Mr. M. Govinda Reddy, who have experience of more than two decades in the pharmaceutical industry. The company has setup its manufacturing facilities at Jeedimetla, Hyderabad. The facilities are designed to comply with current good manufacturing practices (cGMP). DPL currently complies with Good Manufacturing Practices (GMP) of India and is also ISO 9001:: 2000 certified. Recent Results: As per provisional numbers for FY11, DPL reported operating income of INR33.21 crore and net profit of INR0.51 crore. HIND MOTORS: ICRA Reaffirms '[ICRA]BB' Rating on INR5.5cr LT Loan ----------------------------------------------------------------- ICRA has reaffirmed '[ICRA]BB' rating to the INR5.5 crore, long- term, fund-based, bank facilities of Hind Motors Limited. The long-term rating has been assigned a "stable" outlook. The rating reaffirmation takes into account the long experience of the promoters and the established presence of the firm in the dealership business. The rating also factors in favorably the selection of the dealership by Bajaj Auto Limited as one of the few dealerships in Northern India for the sale of its high end motorcycles. The rating is, however, constrained by a considerable decline in the company's operating revenue during the past few years, HML's low profit margins on sale of vehicles, spares and accessories as well as it's weak financial risk profile reflected in moderate gearing and low debt coverage indicators. The ability of HML to arrest the decline in its operating revenues as well as increase sales of high end bikes, which may lead to improvement in its operating margin, would be key rating sensitivities going forward. About Hind Motors HML was established in 1971 and has been operating as a Bajaj Auto Limited (BAL) dealership since its inception. It area of operation covers the territory of Chandigarh and district Mohali in Punjab. It has three showrooms (2 in Chandigarh and 1 in Mohali) and two workshops (1 each in Chandigarh and Mohali). The dealership has been recently selected by BAL as one of the three dealerships in Northern India for sale of its high end motorcycles. Recent Results In 2010-11 (provisional numbers), HML's operating income at INR23.4 crore, reported a 7.8% decline over the previous year. Also, the firm's operating profit before depreciation, interest and tax at INR1.0 crore in 2010-11 (provisional numbers) reported a growth of 11% over the previous year. HML report a profit after tax (PAT) of INR0.1 crore in 2010-11 (provisional numbers). INNOVA CHILDREN'S: ICRA Places '[ICRA]B+' Rating to INR15cr Loan ---------------------------------------------------------------- ICRA has assigned '[ICRA]B+' rating to INR15.00 crore fund based facilities of Innova Children's Heart Hospital Private Limited. The rating assigned reflects Innova Children's Heart Hospital Private Limited's moderate scale of operations, high competition in healthcare industry leading to high attrition rate of consultants/doctors, ICHHPL's relatively high gearing of 1.54 times as on Sept. 30, 2011, and its moderate debt protection metrics. ICRA has also taken into consideration its stretched liquidity profile given its ongoing capex and the time required to stabilize operations at the upcoming multispecialty division. However, ICRA draws comfort from the experienced and well reputed promoters/doctors especially Dr. K. S. Murthy, and the gradual increase in per bed day inpatient revenue. Innova Children's Heart Hospital Private Limited, incorporated in 2006, is a quaternary care hospital specializing in pediatric cardiology. ICHHPL has been set up by a group of doctors (Dr. Sujanee Murthy, Dr. Naga Rajan, Dr. Anil Kumar) led by Dr. K. S. Murthy, to provide dedicated care for children suffering from heart diseases both congenital and acquired, along with general paediatrics. Prior to setting up of ICHHPL, Dr. K. S. Murthy worked as a chief paediatric cardiac surgeon at Apollo Hospitals, Hyderabad and as a consultant and head of the department of paediatric cardiac surgery at the institute of cardio vascular diseases, Madras Medical Mission for 13 years. Recent Results: In FY11, ICHHPL reported operating income of INR15.62 crore and net profit of INR0.43 crore. KUNDANMAL ROOPCHAND: ICRA Rates INR7.5cr Loans at '[ICRA]BB-' ------------------------------------------------------------- ICRA has assigned an '[ICRA]BB-' rating to the INR7.50 crores fund based limits of Kundanmal Roopchand Jewelers Private Limited. The outlook on the long term rating is stable. The assigned ratings take into account intensely competitive and fragmented nature of the industry; KMRC's modest scale of operations and its relatively high gearing levels which coupled with low profitability has led to low debt coverage indicators However the rating derives comfort from KMRC's experienced promoters, their long track record in the jewellery business and established relation with many jewellery wholesalers and retailers. Going forward, ICRA expects KMRC's margins to remain under pressure due to stiff competition and majority of sales coming from low margin wholesale business. This coupled with high working capital borrowings owing to working capital intensive nature of business is likely to lead to moderate debt protection indicators. About KMRC Jewellers KMRC Jewellers was set up as a partnership firm around 40 years back by Mr. Roop Chand Soni in Ratangarh, Rajasthan. Subsequently the promoters moved to Delhi and established another showroom in Karol Bagh in the year 1995. In June 2005, the partnership firm was converted to a private limited company. The company is engaged in the manufacturing, designing, wholesale and retail sales of gold, diamond and precious stone studded jewellery. At present the showroom is managed by Mr. Roop Chand Soni and his son Mr. Karan Singh Soni. KMRC has another group company R.C. gems private limited which is also engaged in similar business operations. Recent results In FY11, the company reported operating income of INR38.93 crores and PAT of INR0.11 crores as against operating income of INR9.62 crores and PAT of INR0.04 crores in FY10. NINANIYA ESTATES: ICRA Rates INR50cr Bank Loan at '[ICRA]B' ----------------------------------------------------------- ICRA has assigned a long-term rating of '[ICRA]B' to the INR50 crore, proposed bank facilities of Ninaniya Estates Limited. The rating factors in the limited track-record of the promoters of NEL in the hospitality business; execution risk associated with the project, considering that it is still in its nascent stage; high demand risk, as commercial development on Gurgaon- Faridabad Road has been gradual over the years; and intensely competitive scenario expected in the premium hotel segment in Gurgaon in the short-to-medium term because of significant planned room additions. The rating is also constrained by high funding risk given that the company has not yet achieved financial closure for the project and is dependent on timely sales of commercial complex and executive suites at reasonable rates for part funding of the project. Nevertheless, the rating derives comfort from the technical, management and marketing associations of NEL with Starwood Hotels for the hotel property and with BHPL for the Executive Suites, which provide the benefits of good brand recognition and access to their reservation and marketing systems; and low regulatory risk, as the critical statutory approvals required during the construction phase have already been obtained. In ICRA's view, the key rating sensitivity is the ability of NEL to sell the balance commercial space and executive suites in a timely manner and at reasonable rates to get clarity on project funding; arrange the proposed debt funding at favorable terms; and implement the project within scheduled implementation period (36 months) and within scheduled costs. Further, the company's ability to command healthy average room revenues (ARRs) and occupancies in hotel as well as executive suites to maintain its profitability, in view of uncertain demand prospects for the hotel property in the area and fixed liability in the form of rentals in executive suites, will also be critical in determining project feasibility and debt-servicing capability of the company. About Ninaniya Estates Incorporated in 2004-05, Ninaniya Estates Limited is in the process of setting up an integrated project comprising an upscale four-star hotel, executive suites and a commercial complex on a 5.05 acres plot in Sector-2, Gwal Pahari on Gurgaon-Faridabad Road in Gurgaon (Haryana). This apart, the company owns two land parcels in Gurgaon (Haryana) and Manesar (Haryana). While the company plans to set up a commercial cum hospitality project on its 5.05 acre plot in Hayatpur (Gurgaon, Haryana), its plans for 175 acres agricultural land in Manesar are not final as yet. The project being currently executed by NEL on the Gurgaon- Faridabad Road is the group's first venture in the commercial and hospitality segment. The company has appointed two agencies, namely, M/s Vastukriti and M/s Topline Buildtech for project execution. Besides several land deals and small projects, the group has executed a group housing project in Sushant Lok Phase-I, Gurgaon on an area of around 20 acres. PETRO PLAST: ICRA Assigns '[ICRA]BB+' Rating to INR15cr Loan ------------------------------------------------------------ ICRA has assigned a long term rating of '[ICRA]BB+' to the INR15 crore fund based working capital facilities of Petro Plast Industries Limited. The outlook on the rating is stable. ICRA has also assigned a short term rating of '[ICRA]A4+' to the INR50 crore non-fund based bank limits of PPIL. The ratings factor in the strong and established supplier- customer network; considerable experience of the promoters in the import and trading of polymers; significant increase in the scale of operations; and moderate gearing levels of the company. The ratings also consider the favorable outlook for the company's revenues, in view of the favorable demand outlook for polymers and chemicals in India; and the large supply deficit leading to increase in import demand. The ratings, however, are constrained by the frequent change in the product mix and volumes traded; highly volatile prices of the traded commodities and the thin margins leading to low coverage parameters and heavy dependence on imports which exposes PPIL to regulatory risk. The ratings are also impacted by the high working capital intensity of the business and the weak cash flows. About Petro Plast Petro Plast industries Limited was started in Chennai in 1995 and commenced business by importing products from Saudi based companies. PPIL has now grown into one of the largest importers of polymers in South India. The main polymers that it imports are Low Density Polyethylene (LDPE), High Density Polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE) and Polyvinyl Chloride (PVC). The company has also been involved in the trading of chemicals like soda ash, sodium carbonate etc. Recently, the company has also started trading in the grades of domestic manufacturers like GAIL (India) Limited, Haldia Petrochemicals Limited (HPL) etc to reduce dependence on imports. Petro group of companies are mainly involved in the trading of imported and domestic polymer and chemical products. Petro Plast Industries Limited and BB Asia Impex trade largely in imported plastic raw materials and chemicals. Raj Chem Plast is the Del Credere Agent (DCA) for GAIL's petrochemical products in Tamil Nadu and Pondicherry. Other companies that the promoters own are- Petroplast India Limited, which is the DCA for HPL, and Indus valley Housing which is a JV owning land banks and involved in real estate and housing development. RAIPUR ROTOCAST: ICRA Reaffirms '[ICRA]BB+' on INR7.5cr Bank Loan ----------------------------------------------------------------- ICRA has reaffirmed the '[ICRA]BB+' rating assigned to the INR7.50 crore fund-based bank facilities (enhanced from INR5.50 crore) of Raipur Rotocast Limited. The outlook on the long-term rating is 'stable'. ICRA has also reaffirmed the '[ICRA]A4+' rating assigned to the INR0.50 crore non-fund based bank facilities of RRL. The ratings take into account the long track record of the promoters of Raipur Rotocast Limited (RRL) in the steel sector; the established and long-term relationship of RRL with its reputed clients, which helps in getting regular business; diversified product profile along with a diverse customer base; profitable operations during 2007 - 2011, although the same has remained at nominal levels and forward integration of the company with the steel shot/grit processing unit of its group company, Rotocast Industries Limited. The ratings are, however, constrained by the exposure of the company to the inherent cyclicality of the steel industry; its relatively small scale of operations, an unfavorable demand outlook from the automobile sector in the short term at least and a weak financial profile, as characterized by profitability at nominal levels and weak coverage indicators. The production facility of RRL has two induction furnaces of 2 metric tonne (MT) and 3.5 MT, respectively. The two furnaces are used for its steel castings and steel shot/grit units with annual installed capacities of 1,500 MT and 5,250 MT respectively. Additionally, RRL is commissioning another induction furnace of 6 MT, which is expected to be operational shortly. During 2010-11, the capacity utilization of steel castings declined significantly, but improved substantially for the steel shots/grits unit on account of buoyant demand conditions for the latter from the automobile sector. At the same time, the utilization of steel castings unit declined on account of a decline in the number of orders received during 2010-11. In the steel shot segment, RRL has a strong client base including reputed companies in the automobile and auto ancillary industries. As for the steel castings segment, the company has a strong client base in the steel and mining industries. ICRA believes that with the slower growth in the automobile industry during 2011-12, RRL's business could have an adverse impact in the short term. At the same time, the outcome of the integration of RRL's capacities with the steel shots/grits processing unit of Rotocast Industries Limited (RIL), with which RRL proposes to merge, is yet to be seen. The operating income of RRL has grown by 28% to INR49.39 crore in 2010-11 from INR38.47 crore in 2009-10 on account of increased production of steel shots along with a significant increase in its realizations during the year. In 2010-11, steel shots contributed to around 80% of the total sales, while steel castings contributed the balance. In 2010-11, the company increased the production of steel shots significantly on account of increased demand from the automobile industry. In the period from 2008-09 to 2010-11, the profits and cash accruals of RRL remained low on account of low value-addition in the steel shots/grits business. The gearing levels of RRL increased to 1.13 times as on 31 March 2011 from 0.88 time as on 31 March 2010 on account of an increase in working capital requirements, funded by short-term loans from the promoters. Consequently, the coverage indicators of RRL remained at moderate levels, as reflected by an interest coverage of 2.7 times and net cash accruals relative to total debt of 13.88% in 2010-11. About Raipur Rotocast Incorporated in 1984, RRL is a closely held company belonging to the Raipur-based Malani & Mohta Group. RRL has facilities at Raipur, Chattisgarh for manufacturing steel shots/grits and steel castings from two induction furnaces of 2 MT and 3.5 MT each. Recent Results: In 2010-11, as per the audited financial statements, RRL reported an operating income of INR49.39 crore and net profits of INR0.78 crore, as against an operating income of INR38.47 crore and a net profit of INR0.73 crore in 2009-10. RAJ CHEM: ICRA Assigns '[ICRA]BB' Rating to INR7cr Capital Loans ---------------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]BB' to the INR7 crore fund based working capital facilities of Raj Chem Plast. The outlook on the rating is stable. ICRA has also assigned a short term rating of '[ICRA]A4' to the INR8 crore non- fund based bank limits of RCP. The ratings factor in the status of the company as an authorized Del Credere Agent of GAIL; and steady increase in income through the interest arbitrage mode. The ratings also consider the favourable outlook for the company's revenues, in view of the favourable demand outlook for polymers in India; and GAIL's planned capacity additions. The ratings, though, are constrained by the company's high gearing, working capital intensity and the increasing interest expense leading to decreasing net margins. Moreover, the company's profitability and networth are vulnerable to the credit risk of its customers, in view of the underlying business risk profile of the DCA model. About Ray Chem Raj Chem Plast is the proprietorship concern of Mr. Raj Kumar Agarwal and is the authorized Del Credere Agent (DCA) for GAIL's polymers in Tamil Nadu and Pondicherry. The company operates as a DCA and a consignment stockist and earns commission income for these activities. Mr. Rajkumar Agarwal has more than two decades of experience in the imports of plastic raw materials and uses this expertise in handling the entire operations and marketing of the firm. Petro group of companies are mainly involved in the trading of imported and domestic polymer and chemical products. Petro Plast Industries Limited and BB Asia Impex trade largely in imported plastic raw materials and chemicals. Raj Chem Plast is the Del Credere Agent (DCA) for GAIL's petrochemical products in Tamil Nadu and Pondicherry. Other companies that the promoters own are- Petroplast India Limited, which is the DCA for HPL, and Indus valley Housing which is a JV owning land banks and involved in real estate and housing development. REGALIA BUILDTECH: ICRA Assigns '[ICRA]BB' Rating to INR50cr Loan ----------------------------------------------------------------- ICRA has assigned the rating of '[ICRA]BB' to the INR50 crore term loan limit of Regalia BuildTech & Services Private Limited. The outlook on the assigned rating is Stable. The assigned rating of Regalia BuildTech & Services Private Limited favorably factors in the established track record of the Karnani group in real estate sector; favourable location of the proposed project at Nagvara at Outer Ring Road in Bangalore owing to the proximity to Bangalore airport and an Information Technology park -- Manyata Embassy Business Park and expected demand from existing and upcoming residential projects in the catchment area. Till October 2011, the company has been able to execute lease agreement/term sheet for the lease of 37% of the leasable project area with reputed retailers including 'Max hypermarket India Private Limited' and multiplex operator - PVR as anchor tenant. The project is in the possession of all approvals and clearances and is being executed at satisfactory pace. However, the assigned rating of RBL is constrained by the aggressive loan repayment schedule according to which the repayment to be done in eight quarterly installments from March 2013 to December 2014. The debt servicing would be critically linked to RBL's ability to refinance the term loan by way of raising Lease Rental Discounting (LRD) loan since lease rentals in the initial phases of operations might not be sufficient to service the debt obligations. The rating is further constrained by the exposure of the company to funding risks given that approximately 43% of the promoter's funding remains to be infused as of August 2011. About Regalia BuildTech Regalia BuildTech & Services Private Limited which was incorporated in 1998 by Mr. Anup S Karnani and his mother Mrs. Pushpa S. Karnani, is a Mumbai-based real estate company. Till 2002; RBL was involved in the business of manufacture of textiles under the erstwhile name of 'Regalia Apparels Private Limited'. RBL is developing a two Basement and 7-storied retail mall cum hotel cum multiplex Building in the name of 'Elements' at Nagvara in Bengaluru. The company is a part of 'Karnani Group of companies' which is a real estate developer in Western Suburbs of Mumbai since 1960s. The group has so far developed around 90 residential/commercial projects in Mumbai with area coverage of over 1,35,000 sq. mtrs. SSPDL LIMITED: ICRA Reaffirms '[ICRA]BB+' Rating on INR8cr Loan --------------------------------------------------------------- ICRA has reaffirmed the '[ICRA]BB+' rating to the INR8 crore fund based facility of SSPDL Limited. ICRA has also reaffirmed the '[ICRA]A4+' rating to the INR9 crore non fund based facility. The outlook on the long term rating is 'Stable'. The ratings reaffirmation continues to reflect SSPDL's long presence in the real estate market, its experienced management and its moderate gearing levels. However, the ratings are constrained by stressed financial performance of SSPDL in 2010-11 on account of sluggish sales and execution activity, reflected by decline in revenue from sale of property, and high working capital intensity on account of high receivables as well as inventory levels. Moreover, SSPDL's operations are mainly concentrated in Chennai and are highly susceptible to volatility in real estate market. Although, SSPDL has significant real estate development plans in Hyderabad and Kerala as well, which are presently in planning stage under separate Special Purpose Vehicles (SPVs), the implementation and market risks associated with these projects are considerably high. In addition, these projects could further entail debt funding which may impact the financial risk profile of SSPDL. Going forward, the company's ability to pick-up its sales volumes and collection efficiency in an otherwise competitive & sluggish market environment would be the key sensitivity factors. About SSPDL Limited Incorporated on Oct. 17, 1994, as a public limited company, SSPDL Limited (erstwhile Srinivasa Shipping & Property Development Limited) is in the business of real estate development and construction of buildings, commercial and residential complexes. The company was originally promoted by Srinivasa Hatcheries Group and Mr. Challa Prakash. The company made its public issue in May 1995 to raise a capital of INR0.75 crore and got its shares listed on Bombay, Hyderabad and Madras Stock Exchanges. On 10th April 2003, Srinivasa Hatcheries Group has divested its holding in favour of Mr. Challa Prakash, Mr. Challa Suresh, Mr. E Bhaskar Rao and M/s. Sri Krishna Devaraya Hatcheries Private Limited. In 2010, SSPDL has entered into a joint venture with UK based Interserve Plc, by forming a subsidiary Company i.e. SSPDL Interserve Private Limited (SIPL), for carrying on construction business in India. While SSPDL will continue with its focus on real estate development projects, it is looking at major expansion plans in the construction business through its subsidiary SIPL. Recent results: During 2010-11, SSPDL recorded a net profit of INR6.10 crore on an operating income of INR36.85 crore as against a net loss of INR2.64 crore on an operating income of INR48.98 crore in 2009-10. VICTOR ELECTRODES: ICRA Assigns '[ICRA]D' to INR5.5cr Loan ---------------------------------------------------------- ICRA has assigned a long-term rating of '[ICRA]D' to the INR5.50 crore fund based limits of Victor Electrodes Limited. ICRA has also assigned '[ICRA]D' rating to the INR0.50 crore non fund based facilities of VEL. ICRA's rating action factors in the company's adverse capital structure and stretched liquidity which have resulted in delays in debt servicing by the company. ICRA's rating also factors in concerns arising from the low scale of operations resulting in limited economies of scale and intense competitive pressures from organized and unorganized players and Chinese imports, which in turn constrains the operating margins of the company. Low profitability coupled with a levered capital structure has resulted in inadequate coverage indicators for the company. ICRA has however noted the company's long track record of operations in the welding consumables business, established dealer network, and growing proportion of sales to Indian Railways. About Victor Electrodes Victor Electrodes Limited was established in 1986 by Mr. Dinesh Kapoor as a private limited company and later it was converted into a public limited company in 1998. It is engaged in the manufacturing of variety of welding electrodes. Its manufacturing facilities are located in Mangolpuri Industrial Area (Delhi) and Bahdurgarh (Haryana) with a total capacity of 680 tons per month. The products are marketed under the brand name- "Victor" through a network of dealers and distributors spread across different states with a small percentage being sold to the Indian Railways. The operating income of Victor Electrodes Limited stood at INR18.97 crores in FY 2010, while the company reported a PAT of INR0.09 crores. * INDIA: Government to Restructure Loans for Textiles Sector ------------------------------------------------------------ The Economic Times reports that the government is working on a package to restructure up to INR5,000 crore worth of loans for the textiles sector but has ruled out a debt waiver. According to the news agency, textiles secretary Rita Menon said that facing a slowdown, the textiles sector has been saddled with loans and has proposed a four-pronged strategy to deal with the burden. It wants the interest rate on the debt to be reset, besides seeking conversion of working capital into fresh debt, which will cost INR835 crore, the Economic Times relates. The report further says the companies have sought a two-year moratorium on repayment of the restructured debt and have proposed a 4.5% interest subsidy on packaging credit. ========= J A P A N ========= AGC TRUST: Moody's Lowers Rating of Class B Notes to 'Caa3' ----------------------------------------------------------- Moody's Japan K.K. has downgraded the ratings for the Class B Trust Certificates issued by AGC Trust. Class B, Downgraded to Caa3 (sf); previously on September 9, 2011, B3 (sf) placed under review for possible downgrade Deal Name: AGC Trust Class: Class B Trust Certificates Issue Amount (initial): JPY6 billion Dividend: Floating Issue Date (initial): September 7, 2007 Final Maturity Date: August, 2014 Underlying Asset (initial): Class B Trust Certificates backed by the Tokkin loan receivables and Tokkin Trust Certificates ultimately backed by the Specified Bond Originator: Deutsche Bank, Tokyo Branch Arranger: Deutsche Securities Inc. AGC Trust is a single-asset/single-borrower CMBS deal, effected in October 2007. The Originator first purchased a specified bond through Tokkin Trust under Japan's Trust Law and which in turn received the Tokkin Trust Certificates. At the same time, the Originator executed a loan to a Tokkin Trust (Tokkin loan receivables). The Originator then entrusted both the Tokkin loan receivables and Tokkin Trust Certificates to another trustee, and in turn obtained Trust Certificates, which are divided into Classes A, B, C1, C2. The Trust Certificates incorporate a senior/subordinated structure. The Originator then sold the Class B Trust Certificates through the Arranger to investors. The Trust Certificates are rated by Moody's. Dividends on the rated Trust Certificates are made using interest collections as specified bond interests. The incurred losses from the specified bond will be allocated in reverse sequential order, starting with the most subordinate class of the Trust Certificates. Ratings Rationale The current rating action reflects these factors: 1. Moody's has re-assessed the property's stabilized cash flows and value in light of the rental market conditions in sub- markets around the property. It has also re-evaluated the performance of the underlying property in terms of occupancy rates and actual rent prices. As a result, Moody's has decided to apply higher stress on the stabilized value, reducing it by about 45% from the initial estimate. 2. In light of Moody's re-assessment, losses on the Class B Trust Certificates are highly likely. The principal methodology used in this rating was "Updated: Moody's Approach to Rating CMBS Transactions in Japan(June 2010)" published on September 30, 2010. Moody's did not receive or take into account any third party due diligence reports on the underlying assets or financial instruments related to the monitoring of this transaction in the past six months. ASAHI LIFE: S&P Withdraws 'BB-' Counterparty Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB-' financial strength and long-term counterparty credit ratings on Asahi Mutual Life Insurance Co. at the company's request. The outlook on both ratings was negative. J-CORE 13 TRUST: Moody's Cuts Rating on Class C Notes to 'B1' ------------------------------------------------------------- Moody's Japan K.K. has downgraded the ratings for the Class A through E Trust Certificates issued by J-CORE 13 Trust. Class A, downgraded to A1 (sf); previously on September 9, 2011, Aa3 (sf) placed under review for possible downgrade Class B, downgraded to Baa3 (sf); previously on September 9, 2011, Baa2 (sf) placed under review for possible downgrade Class C, downgraded to B1 (sf); previously on September 9, 2011, Ba2 (sf) placed under review for possible downgrade Class D, downgraded to B2 (sf); previously on September 9, 2011, Ba3 (sf) placed under review for possible downgrade Class E, downgraded to Caa2 (sf); previously on September 9, 2011, B2 (sf) placed under review for possible downgrade Deal Name: J-CORE13 Trust Class: Class A through E Trust Certificates Issue Amount (initial): JPY42.7 billion Dividend: Floating Issue Date (initial): December 18, 2007 Final Maturity Date: September, 2014 Underlying Asset (initial): Class A Trust Certificates backed by the Tokkin loan receivables and Tokkin Trust Certificates ultimately backed by the specified bond Originator: Deutsche Bank, Tokyo Branch Arranger: Deutsche Securities Inc. J-CORE 13 is a single-asset/single-borrower CMBS deal, effected in December 2007. The Originator first purchased a specified bond through Tokkin Trust under Japan's Trust Law and which in turn received the Tokkin Trust Certificates. At the same time, the Originator executed a loan to a Tokkin Trust (Tokkin loan receivables). The Originator then entrusted both the Tokkin loan receivables and Tokkin Trust Certificates to another trustee, and in turn obtained the Trust Certificates, which are divided into Classes A, B, C1, C2. The Trust Certificates are senior to the next junior class sequentially. The Originator further entrusted cash and Class A of the Trust Certificates to the J-CORE 13 Trust trustee, and in turn obtained the Class A through E Trust Certificates (Trust Certificates), which it then sold through the Arranger to investors. The Trust Certificates are rated by Moody's. Dividends on the rated Trust Certificates are made using interest collections as specified bond interest. The incurred losses from the specified bond will be allocated in reverse sequential order, starting with the most subordinate class of the Trust Certificates. Ratings Rationale The current rating action reflects these factors: 1. Moody's has re-assessed the property's stabilized cash flows and value in light of the rental market conditions in sub- markets around the property. It has also re-evaluated the performance of the underlying property in terms of occupancy rates and actual rent prices. As a result, Moody's has decided to apply higher stress on the stabilized value, reducing it by about 45% from the initial estimate. 2. In light of Moody's re-assessment, losses on the Class E Trust Certificates are highly likely. The principal methodology used in this rating was "Updated: Moody's Approach to Rating CMBS Transactions in Japan (June 2010)" published on September 30, 2010. Moody's did not receive or take into account any third party due diligence reports on the underlying assets or financial instruments related to the monitoring of this transaction in the past six months. JLOC37: Moody's Lowers Rating on Class D1/D2 Notes to 'C' --------------------------------------------------------- Moody's Japan K.K has changed ratings on the Class A1 through B2 Notes and D1/D2 Notes issued by JLOC37. Class A1/A2, upgraded to Aaa (sf) from Aa3 (sf); previously, on February 10, 2011, downgraded to Aa3 (sf) from Aa2 (sf) Class B1/B2, upgraded to Baa1 (sf) from Ba1 (sf); previously, on February 10, 2011, downgraded to Ba1 (sf) from A3 (sf) Class D1/D2, downgraded to C (sf) from Caa3 (sf); previously, on February 10, 2011, confirmed at Caa3 (sf) Deal Name: JLOC37 Class: Class A1 through D2 Issue Amount (initial): JPY81.22 billion Dividend: Floating Issue Date (initial): July 11, 2007 Final Maturity Date: January, 2015 Underlying Asset (initial): 10 non-recourse loans backed by real estate Originator: Morgan Stanley Japan Securities Co., Ltd. and Morgan Stanley Japan Limited (as of the issue date) Arranger: Morgan Stanley Japan Securities Co., Ltd. (as of the issue date) JLOC37, effected in July 2007, represents the securitization of 10 loans backed by real estate. The originator transferred the 10 loans to the issuer SPE, which issued the Class A1 through D2 and X notes, and then sold them to investors. The notes are rated by Moody's. The underlying loans are classified as either component loans or pooled loans. Component loans are further divided into senior and junior components. The senior component and pooled loans will secure the Class A1 through D2 notes. Interest and principal collections from the pooled loans will be used to make payments on the senior notes. Interest payments on the notes will be made sequentially, while principal payments will be made pro-rata. Principal collections from the underlying loans (other than defaulted loans) will be used to pay down the Class A through D notes pro-rata. Interest and principal collections from the component loans will be used to pay down the senior and junior notes. Interest payments on the senior and junior components will be made sequentially, while principal payments will be made pro-rata. Principal collections from the underlying loans (other than defaulted loans) will be paid pro-rata, according to the outstanding amount of the senior and junior components. Interest and principal payments made on the senior component loans will be used to pay the interest on and principal of the senior notes in the same manner as the pooled loans: interest payments on the notes will be made sequentially, while principal payments will be made pro-rata. Principal collections from the senior component (other than defaulted loans) will used to pay down the Class A through D notes pro-rata. Currently, three non-recourse loans -- backed by six properties - - remain. They are under special servicing. Rating Rationale 1) The recovery of the loan backed by hotels outside a major city and under special servicing is higher than Moody's assumptions. 2) After recovery activities, losses on the remaining loan are highly likely, and could negatively affect the Class D note. The principal methodology used in this rating was "Updated: Moody's Approach to Rating CMBS Transactions in Japan (June 2010)" published on September 30, 2010. Moody's did not receive or take into account any third party due diligence reports on the underlying assets or financial instruments related to the monitoring of this transaction in the past six months. JUROKU BANK: S&P Withdraws 'B' Bank Fundamental Strength Rating --------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'A-' long-term and 'A-2' short-term counterparty credit ratings on Juroku Bank Ltd. at the bank's request. "At the same time, we also withdrew the 'B' bank fundamental strength rating on Juroku Bank," S&P related. TOKYO ELECTRIC: Government Likely to Approve Financial Assistance ----------------------------------------------------------------- The Wall Street Journal reports that the Japanese government is expected to approve financial assistance to Tokyo Electric Power Co. this week, after the embattled utility sought about JPY1 trillion, or about US$13 billion, in public funds Friday to deal with compensation claims from the disaster at the Fukushima Daiichi nuclear plant. The news agency relates that the government's objective is to keep the company afloat. Without public funds, the Journal notes, TEPCO would have to report a capital deficit for the July- September quarter, results of which are due by Nov. 14. Even the slightest hint of bankruptcy of a company with JPY13 trillion in liabilities could trigger major financial turmoil, the Journal says. According to the Journal, public assistance is expected to sustain TEPCO in a state of positive net worth of about JPY700 billion at the end of the current business year in March, even after booking an expected annual net loss of about JPY570 billion. But if the bleeding continues at the current pace, much of the capital would be lost in the next business year, the report relays. The Journal relates that a government official familiar with the matter said this makes it crucial for TEPCO to secure either an electricity-rate increase or an early restart of idled nuclear reactors to deal with the cost increases resulting from the prolonged stoppage of nuclear power plants and greater reliance on expensive thermal power. Meanwhile, the Journal reports that the official said TEPCO's main creditor banks are expected to accept a request to maintain the balance of their loans to TEPCO -- now at about JPY2 trillion -- through the current business year. In addition, the government-affiliated Development Bank of Japan is expected to increase its supply of working capital to TEPCO, the official added. According to the Journal, TEPCO originally sought to have the bank loan balance maintained for the next 10 years. But the banks found it difficult to agree to that, given the many uncertainties about the business outlook, including future electricity rates and the restart of reactors. About Tokyo Electric Tokyo Electric Power Company (TEPCO) is the largest electric power company in Japan and the largest privately owned electric utility in the world. TEPCO supplies electricity to meet the increasingly diversified and sophisticated demands of its over 28.09 million customers in the metropolitan Tokyo, which is the political, economic, and cultural center of Japan, and eight surrounding prefectures. Bloomberg News said the utility is battling radiation leaks at the Fukushima Dai-Ichi power plant north of Tokyo after a March 11 earthquake and tsunami knocked out its cooling systems, causing the biggest atomic accident in 25 years. More than 50,000 households were forced to evacuate and Bank of America Corp.'s Merrill Lynch estimates TEPCO may face compensation claims of as much as JPY11 trillion (US$135 billion). As reported in the Troubled Company Reporter-Asia Pacific on Aug. 11, 2011, Moody's Japan K.K. confirmed the ratings of Tokyo Electric Power Co. The ratings confirmed include its senior secured rating of Ba2, long-term issuer rating of B1, and Corporate Family Rating of Ba3. The ratings outlook is negative. ==================== N E W Z E A L A N D ==================== HIBERNIAN CREDIT: NZ$1.2MM Theft Adversely Affect Credit Union -------------------------------------------------------------- Rosaleen Macbrayne at APNZ reports that a spokesman for the Hibernian Catholic Benefit Society said that the actions of a woman jailed Friday for a NZ$1.2 million fraud against the Wellington non-profit benefit society have dealt its associated credit union a "fatal blow." According to APNZ, Mike McBride, president of the Hibernian Catholic Benefit Society and chairman of the Hibernian Credit Union, revealed the union is being forced into liquidation, although the society would carry on. Credit union accounts represented the life savings of some elderly members. "Generally, these are not wealthy people," the report quotes the retired Inland Revenue tax investigator, who did not personally lose any money, as saying. APNZ notes that the ongoing theft by former trusted employee Susan Hagai, 45, had adversely affected the benefit society, which was established in 1869 to provide mutual aid and support, such as life assurance, housing loan and funeral costs. A credit union set up later to provide savings and loan facilities became a separate legal entity in 1988, the report discloses. According to the report, Mr. McBride said all members of the society had been affected badly by the fraud, but none more so than the 458 Credit Union participants. APNZ relates that Mr. McBride said the members had suffered "a very real and tangible loss" and been told they could expect to lose at least half of their savings. The reaction had been disbelief, anger, tears and disgust, he said. Branches of the society and trusts with accounts with the credit union would be severely limited in the benefits and grants they could offer, APNZ relays. Mr. McBride, as cited by APNZ, said the credit union had assets of less than NZ$80,000 remaining. The costs associated with placing it in liquidation would further reduce the funds available to redistribute. However, the society would be able to recover from the fraud, thanks to its stronger position -- assets of just under NZ$10 million. Both the society and the credit union had spent a considerable sum of money identifying and tracing the fraud -- which extended over at least six years -- and getting legal and other advice. Those costs had topped NZ$154,000 and continued to rise, APNZ adds. Founded in 1869, The Hibernian Catholic Benefit Society is a friendly society which offers financial services to about 2,800 members, of which about 20% to 30% are also with the credit union. HIGHCLIFF ROAD: PricewaterhouseCoopers Appointed as Liquidator -------------------------------------------------------------- Simon Hartley at Otago Daily News reports that Highcliff Road Ltd has been placed in the hands of liquidators. The company was owned by former Dunedin property developer Geoffrey Kennedy, who has been sentenced to 11 years' jail in Australia on drug charges. Otago Daily News says the company has been placed in the hands of Christchurch-based liquidators from PricewaterhouseCoopers and creditors have until November 25 to make claims. It is not known if the liquidation was voluntary or forced, or if there are outstanding debts, Otago Daily reports. According to the report, Mr. Kennedy developed Harbour Heights in Highcliff Rd, Dunedin, and was also involved in a 580 sqm. two- storey building development in King Edward St in South Dunedin at the time he was arrested. He later sold the unfinished development. Otago Daily News relates that Mr. Kennedy and Colombian partner Jennifer Romero-Maya were respectively 53 and 30 years old when convicted in the Supreme Court Brisbane on August 16 of attempting to possess a marketable quantity of an unlawfully imported border-controlled drug. They were sentenced to 11 years' jail time. NATHANS FINANCE: Former Auditor's Bid May Derail NZ$66MM Claim -------------------------------------------------------------- Hamish Fletcher at nzherald.co.nz reports that a bid by Nathans Finance's former auditor could derail a NZ$66 million claim brought by the failed firm's receiver. Nathans Finance collapsed in August 2007, owing 7,000 investors about $174 million. The company's former directors -- Mervyn Doolan, John Hotchin, Kenneth (Roger) Moses and Donald Young -- were convicted this year on Securities Act charges relating to untrue statements made in the company's offer documents. Messrs. Moses and Doolan were sentenced to more than two years' jail while Mr. Young got nine months' home detention. Mr. Hotchin, who made an early guilty plea and then testified against his former colleagues, received 11 months' home detention. According to the report, PricewaterhouseCoopers receiver Colin McCloy is attempting to recover investor losses from the directors and the firm's auditor, Staples Rodway. nzherald.co.nz recalls that Staples Rodway's Christopher Hughes, who worked with Nathans, pleaded guilty last year to charges brought by the Institute of Chartered Accountants relating to his treatment of the failed finance firm's statements. According to nzherald.co.nz, Mr. McCloy's counsel, Murray Tingey, argued Monday that if the auditor had performed its duty, receivers would have been brought in earlier and more money would have been left for investors. Mr. Tingey, as cited by nzherald.co.nz, said the auditor failed to properly assess the recoverability of related-party loans Nathans made to VTL Group and subsidiaries. No date for the trial has been set and lawyers for both groups appeared in the High Court at Auckland Monday to hear an application for security of costs from the defendants, the report relays. The report states that the mechanism is to ensure that if Mr. McCloy is unsuccessful in his claim, then there are funds set aside to pay the defendants' court costs. The application for up to NZ$890,000 security was brought by Staples Rodway after Mr. Doolan's counsel withdrew, the report discloses. But Mr. Tingey said only NZ$540,000 was left in Nathans' accounts, which was needed for the receiver's own legal fees. And he said if an award of security was made, the NZ$66 million claim against the auditor would have to be dropped, nzherald.co.nz reports. Mr. Tingey said many of Nathans 7,000 out-of-pocket investors were elderly and it was not feasible for them to put forward funds for security, the report relates. But Staples Rodway counsel Philippa Fee said some of NZ$2.5 million paid to investors in December 2009 should have been left aside for security, especially as the receiver indicated a civil claim might be brought. Justice Geoffrey Venning has reserved his decision on the security for costs, the report adds. About Nathans Finance Nathans Finance Ltd went into receivership when the finance company's trustee, Perpetual Trust Limited, appointed receivers on Aug. 20, 2007. The company owed approximately NZ$174 million to some 7,000 investors. Nathans Finance is a wholly owned subsidiary of VTL Group Limited, which also went into receivership in November 2008. VTL Group owns a number of vending machine related businesses which operate in New Zealand, Australia, North America and Europe. ================= S I N G A P O R E ================= INFOWAVE PTE: Court Enters Wind-Up Order ---------------------------------------- The High Court of Singapore entered an order on Oct. 14, 2011, to wind up the operations of Infowave Pte Ltd. Arrow Asia Opportunity Fund Limited filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office 45 Maxwell Road #06-11 Singapore 069118 LANDMARK CHEMICALS: Creditors' Proofs of Debt Due Nov. 28 --------------------------------------------------------- Creditors of Landmark Chemicals Asia Pte Ltd, which is in member's voluntary liquidation, are required to file their proofs of debt by Nov. 28, 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 MAVERIC LTD: Creditors' Proofs of Debt Due Nov. 28 -------------------------------------------------- Creditors of Maveric Ltd, which is in member's voluntary liquidation, are required to file their proofs of debt by Nov. 28, 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 SPS ELECTRIC: Court to Hear Wind-Up Petition Nov. 11 ---------------------------------------------------- A petition to wind up the operations of SPS Electric Pte Ltd will be heard before the High Court of Singapore on Nov. 11, 2011, at 10:00 a.m. Lam Chee Group filed the petition against the company on Oct. 18, 2011. The Petitioner's solicitor is: Messrs Loy & Company 133 New Bridge Road #13-06 Chinatown Point Singapore 059413 STYLE EVOLUTION: Court to Hear Wind-Up Petition Nov. 11 ------------------------------------------------------- A petition to wind up the operations of Style Evolution LLP will be heard before the High Court of Singapore on Nov. 11, 2011, at 10:00 a.m. Jack Investment Pte Ltd filed the petition against the company on Oct. 18, 2011. The Petitioner's solicitors are: Bee See & Tay 10 Anson Road #24-11 International Plaza Singapore 079903 =============== X X X X X X X X =============== * S&P: One U.S.-Based Default Last Week; 2011 Total at 36 --------------------------------------------------------- One corporate issuer defaulted last week, raising the 2011 global corporate default tally to 36, said an article published Friday by Standard & Poor's Global Fixed Income Research, titled "Global Corporate Default Update (Oct. 20 - 27, 2011)." The rating on U.S.-based Trailer Bridge Inc. was revised to 'SD' from 'CCC' after the company provided confidential information regarding its debt obligations. Of the total defaulters this year, 26 are based in the U.S., three are based in New Zealand, two are in Canada, and one each is in the Czech Republic, Greece, France, Israel, and Russia. Of the defaulters by this time in 2010, 49 were U.S.-based issuers, nine were from the other developed region (Australia, Canada, Japan, and New Zealand), eight were from the emerging markets, and two were European issuers. Fourteen of this year's defaults were due to missed interest or principal payments and seven were due to distressed exchanges-- both of which were among the top reasons for defaults in 2010. Bankruptcy filings followed with six defaults, and regulatory actions accounted for three. Of the remaining defaults, one issuer failed to finalize refinancing on its bank loan, one issuer had its banking license revoked by its country's central bank, another was appointed a receiver, and three were confidential. By comparison, in 2010, 28 defaults resulted from missed interest or principal payments, 25 from Chapter 11 and foreign bankruptcy filings, 23 from distressed exchanges, three from receiverships, one from a regulatory directive, and one from administration. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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 ***