/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/111103.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 Thursday, November 3, 2011, Vol. 14, No. 218 Headlines A U S T R A L I A DICK SMITH: Stores Now Under "Strategic Review" MIRABELA NICKEL: S&P Affirms 'B-' Corporate Credit Rating LANAI APARTMENTS: Lender Taps Ferrier Hodgson as Receivers C A M B O D I A ACLEDA BANK: S&P Lowers Counterparty Credit Rating to 'B' * KINGDOM OF CAMBODIA: S&P Lowers Sovereign Credit Rating to 'B' C H I N A CHINA POWER: Fitch Holds Rating on Long-Term IDR at 'BB' DATANG INT'L: Stable Position Cues Fitch to Affirm Low-B Ratings GITI TIRE: S&P Affirms 'B-' Corp. Credit Rating; Outlook Negative HUADIAN POWER: Fitch Lowers Rating on Long-Term IDR to 'BB-' HUANENG POWER: Fitch Affirms Rating on Sr. Unsec. Notes at 'BB+' H O N G K O N G LANDFORD HOLDINGS: Members' Final Meeting Set for Nov. 30 LEHMAN BROTHERS: HKMA Reports Progress of Probe on MiniBond Cases M & T: Members' and Creditors' Annual Meetings Set for Nov. 18 MACAO DRAGON: Lai and Haughey Step Down as Liquidators MODERN BILLIARD: Members' Final Meeting Set for Nov. 30 NEW CHINA: Creditors' Proofs of Debt Due Nov. 11 NEW CHINA HK: Creditors' Proofs of Debt Due Nov. 11 NEW CHINA HK DEV: Creditors' Proofs of Debt Due Nov. 11 NEW CHINA HK INDUSTRIAL: Creditors' Proofs of Debt Due Nov. 11 NEW CHINA HK PROPERTIES: Creditors' Proofs of Debt Due Nov. 11 NEW CHINA HK TRADING: Creditors' Proofs of Debt Due Nov. 11 NEWAYS INTERNATIONAL: Placed Under Voluntary Wind-Up Proceedings PEGASUS ENTERPRISE: Leung Shi Ho Appointed as Liquidator PEARL SYSTEMS: Heung Sai Kit Steps Down as Liquidator QUINWEST COMPANY: Placed Under Voluntary Wind-Up Proceedings SECURAIR LIMITED: Members' Final Meeting Set for Nov. 29 I N D I A ANANGOOR TEXTILE: CRISIL Reaffirms 'B+' Rating on INR215MM Loan ANDHRA GINNING: CRISIL Assigns 'CRISIL B' Rating to INR35MM Loan BADRI VISHAL: CRISIL Assigns 'CRISIL D' Rating to INR75MM Loan CALSTAR SPONGE: CRISIL Places CRISIL BB- Rating on INR100MM Loan CALCAST FERROUS: CRISIL Rates INR58.5 Million Loan at 'CRISIL BB' H'RECK ENGINEERS: CRISIL Puts 'CRISIL B' Rating on INR7.2MM Loan INDIAN TERRAIN: CRISIL Places 'CRISIL B+' Rating on INR300MM Loan KINGFISHER AIRLINES: Denies Report on Debt Restructuring Plan MERU AUTOMOBILES: CRISIL Puts 'CRISIL BB' Rating on INR200MM Loan NIMRA EDUCATIONAL: CRISIL Places CRISIL D Rating on INR70MM Loan ROOPA INDUSTRIES: CRISIL Puts 'CRISIL BB' Rating to INR2.9MM Loan SRI SELVAKUMAR: CRISIL Assigns CRISIL BB- Rating to INR70MM Loan SRINIVASA CONSTRUCTION: CRISIL Rates INR300MM Loan at 'CRISIL B' S V ENGINEERING: CRISIL Assigns 'CRISIL D' Rating to INR45MM Loan SWAMI FEEDS: CRISIL Assigns CRISIL BB+ Rating to INR92MM LT Loan TITAN EDUCATIONAL: CRISIL Puts CRISIL BB Rating on INR230MM Loan TITANIUM IMPORTS: CRISIL Puts 'CRISIL B+' Rating on INR10MM Loan VINAYAK OIL: CRISIL Assigns 'CRISIL BB+' Rating to INR30MM Loan J A P A N TAKEFUJI CORP: Tokyo Court Approves Rehabilitation Plan K O R E A KOREA EXCHANGE: Lone Star Loses Major Shareholder Status N E W Z E A L A N D PIKE RIVER: Shanxi Coal Submits Joint Bid with Solid Energy WESTERN PACIFIC: Unsecured Claims Rise to NZ$63.4 Million S I N G A P O R E TOP SECRET: Court Enters Wind-Up Order UPS LOGISTICS: Creditors' Proofs of Debt Due Nov. 28 WOK WOK: Court to Hear Wind-Up Petition Nov. 11 - - - - - ================= A U S T R A L I A ================= DICK SMITH: Stores Now Under "Strategic Review" ----------------------------------------------- Melanie Maeseele at goldcoast.com.au reports that Dick Smith electronics are the latest in a string of businesses feeling the pinch of a tough economic climate. Nine Gold Coast stores are now under review with the company not ruling out closures and job losses could be imminent, says goldcoast.com.au. According to the report, a statement released nationally on Wednesday by Woolworths Limited chief executive Grant O'Brien related that a "strategic review" of all stores in Australia and New Zealand was underway. "Consumer electronics, as a retail category has been experiencing significant challenges, particularly in relation to tightened customer spending on discretionary products, category deflation and the effects of the high Australian dollar," the report quotes Mr. O'Brien as saying. Dick Smith Electronics Pty Limited -- http://dicksmith.com.au/-- operates as a retailer and wholesaler of electronics products in Australia and New Zealand. It offers computers, communications, gaming, and entertainment products. Dick Smith Electronics Pty Limited was founded in 1969 and is based in Chullora, Australia. MIRABELA NICKEL: S&P Affirms 'B-' Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook to stable, from positive, on Australia-based nickel miner Mirabela Nickel Ltd. "At the same time, we affirmed the 'B-' corporate credit rating and senior unsecured debt ratings on Mirabela, and the recovery rating of '4' on the company's senior unsecured debt," S&P stated. "The outlook revision reflects our view that Mirabela's improvement in unit cash cost of production is slower than we initially forecast. The slower decrease in cash costs combined with the recent close-out of commodity hedges at a cost of about $20 million have resulted in current cash balances being lower than we had anticipated," said Standard & Poor's credit analyst Thomas Jacquot. "However, we expect the company to complete major improvement works by early 2012. The plant upgrade works at the company's Santa Rita mine site in Brazil will be completed, and the company would have improved the operation of the mine toward a steady- state cash cost. While the expected decrease in cash costs proved slower than we initially forecast, in part due to the strong Brazilian real against the U.S. dollar, the company benefited from strong nickel prices that partly offset those higher operating costs. Based on the company's operating performance to date, we consider that Mirabela should still be able to reach its long-term target of cash cost of production commensurate with second-quartile producers, albeit later than originally envisaged," S&P stated. Mr. Jacquot added: "Underpinning the stable outlook are the adequate progress of the company toward reaching steady-state production during 2012, the current status of the upgrade works expected to be completed in early 2012, and the adequate cash reserves Mirabela holds to support the business in the interim period. The outlook also reflects our view that the company is appropriately placed to withstand lower-than-historical nickel prices if this were to happen over a prolonged period." "We may raise the rating if Mirabela successfully lowers its unit cash cost to levels commensurate with second-quartile producers, maintains adequate liquidity, generates positive cash flow after capital expenditure, and demonstrates EBITDA interest cover of more than 5x and debt service cover ratio (including capital expenditure) of more than 4x. Conversely, the rating may face downward pressure if there are further delays in achieving cash-flow-positive operations, further weakening of the company's liquidity position or a severe drop in nickel prices. And any additional expansion capital expenditure (such as the development of the Santa Rita underground resource) in the near term could put pressure on the rating," S&P added. LANAI APARTMENTS: Lender Taps Ferrier Hodgson as Receivers ---------------------------------------------------------- On Sept. 2, 2011, Greg Moloney and Will Colwell of Ferrier Hodgson were appointed to the assets and undertakings of Lanai Apartments Pty Ltd (aft for Lanai Unit Trust) by the Bank of Western Australia Limited, the holder of a fixed and floating charge over the assets and undertakings of the Company. The Receivers and Managers have requested sales submissions from various agents and will be formalizing a sale strategy in the coming weeks. =============== C A M B O D I A =============== ACLEDA BANK: S&P Lowers Counterparty Credit Rating to 'B' --------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term counterparty credit rating on ACLEDA Bank PLC to 'B' from 'B+'. The outlook is stable. "We also affirmed the 'B' short-term rating on the bank. At the same time, we lowered the long-term ASEAN regional scale rating on ACLEDA to 'axBB-' from 'axBB'. We affirmed the 'axB' short-term ASEAN rating," S&P said. "We lowered the rating on ACLEDA following the sovereign rating action on Cambodia (B/Stable/B; axBB-/axB) (see 'Long-Term Rating On Cambodia Lowered To 'B', Outlook Stable; 'B' Short-Term Rating Affirmed,' published on RatingsDirect on the Global Credit Portal). We rarely rate financial institutions above the long- term sovereign rating on their home country. We generally consider it unlikely that such institutions would remain immune to changes in the domestic economy," S&P said. "Our sovereign ratings on Cambodia reflect our view of the country's low income, highly dollarized and narrow economic profile, and limited fiscal flexibility. These characteristics could increase the credit risks for Cambodian banks including ACLEDA; they could also weaken banks' funding and liquidity profiles. Weaker credit quality will in turn affect Cambodian banks' risk-adjusted earnings," said Standard & Poor's credit analyst Ivan Tan. The counterparty ratings on ACLEDA reflect the underdeveloped operating environment and poor legal infrastructure in Cambodia. The ratings also reflect the possibility that the bank's asset quality could deteriorate because of rapid loan growth in the past. ACLEDA's strong business position and franchise in the domestic banking industry and its adequate financial profile for the rating category moderate these weaknesses. "The stable outlook reflects our expectation that ACLEDA will maintain its adequate financial profile amid high balance sheet growth," said Mr. Tan. "An upgrade is possible if we raise the sovereign rating on Cambodia and the bank maintains its asset quality through the stabilization of its loan portfolio and improves core profitability through greater income diversity. We could downgrade ACLEDA if: (1) the bank's asset quality or capitalization declines substantially because of rapid loan growth; or (2) we lower the sovereign rating on Cambodia." * KINGDOM OF CAMBODIA: S&P Lowers Sovereign Credit Rating to 'B' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term sovereign credit rating on the Kingdom of Cambodia to 'B' from 'B+'. The outlook is stable. "We also affirmed the 'B' short- term rating on the sovereign," S&P said. "At the same time, we lowered the long-term ASEAN regional scale rating on Cambodia to 'axBB-' from 'axBB'. We affirmed the 'axB' short-term ASEAN rating. We also lowered our transfer and convertibility (T&C) assessment of Cambodia by one notch to 'B+'. The ratings are unsolicited," S&P related. "We lowered the rating on Cambodia by one notch to reflect our view of the country's low income, highly dollarized and narrow economic profile, and limited fiscal flexibility," said Standard & Poor's credit analyst Agost Benard. "Our downgrade reflects the greater emphasis that Standard & Poor's places on political and economic fundamentals in our ratings methodology introduced in June 2011. (See 'Sovereign Government Rating Methodology And Assumptions,' published on RatingsDirect on the Global Credit Portal on June 30, 2011.)," S&P said. "These constraints are weighed against strong growth prospects and substantial donor engagement, which enables Cambodia to maintain a low debt and interest burden," Mr. Benard said. Standard & Poor's believes that Cambodia's low income level is indicative of very significant constraints on the political and fiscal flexibility needed to avoid default in the event of stress. At US$830 for 2010, per capita income is the second lowest among rated sovereigns in Asia. A high level of dollarization also hampers Cambodia's policy flexibility. The government's low capacity to mobilize revenue constrains the rating, despite gradual improvement over the past decade. General government revenue has risen by about 1% of GDP over the past 10 years to a projected 13.4% of GDP in 2011 (including grants). Nevertheless, it remains one of the lowest among rated sovereigns, and necessitates ongoing budget support by donors. On the other hand, the country's record of strong growth in the framework of improving macroeconomic policies supports the ratings. Political stability and a liberal economic and trade regime enabled the Cambodian economy to produce average real per capita GDP growth of 5.5% a year for 2005-2013. The continued engagement of international donors anchors policy formulation and provides substantial fiscal and balance-of- payments support. This support is reflected in the concessional nature of nearly all of the sovereign's external debt stock, enabling Cambodia to maintain relatively low debt at an estimated 24% of GDP (2010) and an exceedingly low interest burden of 1.6% of general government revenues, Mr. Benard said. "The stable outlook reflects our expectation that policy continuity and pragmatic macroeconomic planning will prevail. The ratings could improve if the government implements measures to expand its low revenue base and improves collection efficiency, such that there is a sustained rise in the tax-to-GDP ratio. We may also raise the ratings if Cambodia increases efforts to materially boost investments by addressing the existing multitude of deterrents," S&P related. However, the ratings could be lowered if there is fiscal slippage or reduced donor support due to deviation from prudent macroeconomic policies or an adverse change in debt management strategy. ========= C H I N A ========= CHINA POWER: Fitch Holds Rating on Long-Term IDR at 'BB' -------------------------------------------------------- Fitch Ratings has affirmed China Power International Development Limited's (CPI) Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'BB' with a Stable Outlook. The agency simultaneously affirmed its Short-term foreign and local currency IDRs at 'B'. "The ratings reflect CPI's strategy of investment in the hydro- power segment to reduce its exposure to the fundamental problems facing the thermal power segment," says Steve Cox, Director in Fitch's Asia-Pacific energy and utilities team. CPI reported an EBITDA margin of 27.5% for H111, and for H110 its EBITDA margin was the highest among Fitch-rated Chinese thermal independent power producers (IPPs). The company has also mitigated some of the disparity between high coal prices and government controlled on-grid tariffs by high levels of contract fulfilment -- around 90% of coal supply -- and tying in coal supply with two thermal stations by offering minority equity stakes to the coal producer. Fitch applies its parent and subsidiary rating linkage methodology to assess the linkages between CPI and its parent China Power Investment Group (CPI Group). CPI Group benefits from an investment portfolio vertically integrating coal, power and aluminium business units. The parent's consolidated credit profile is weaker than CPI's stand-alone 'BB' rating by one notch. Due to the lack of ring fencing of CPI from its parent, CPI's rating, before any consideration of state support, is constrained by the credit profile of its parent. However, in view of CPI Group and CPI's strategic importance to China, Fitch has applied a one-notch uplift in arriving at CPI's final rating of 'BB'. The agency notes that CPI's capex plans, although still aggressive and partly debt financed, are weighted toward hydro power and will further increase the company's protection against low margins or losses in the thermal power segment. These projects include the Baishi and Tuokou hydro projects which will add installed capacity of 1.85GW upon completion. However, CPI is exposed to hydrological risk from concentration of its assets on the Yuanjiang river. The Stable Outlook reflects Fitch's expectation that the Chinese government will take adequate steps to support the Chinese IPPs, as evidenced in the retrospective tariff rises against 2010 production in some plants, and April 2010 tariff rises in some provinces. But it also incorporates Fitch's view that the disparity between coal prices and tariffs will continue and the burden will be primarily born by power producers. DATANG INT'L: Stable Position Cues Fitch to Affirm Low-B Ratings ---------------------------------------------------------------- Fitch Ratings has affirmed Datang International Power Generation Co. Limited's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB' with a Stable Outlook. The agency has simultaneously affirmed its senior unsecured ratings at 'BB' and Short-Term Foreign and Local Currency IDRs at 'B'. "The affirmation of the ratings reflects the stable position of DIPG and the parent China Datang Corporation in the face of continued disparity between high coal prices and artificially low electricity tariffs," notes Steve Cox, Director in Fitch's Asia- Pacific Energy and Utilities team. Both DIPG and China Datang Corporation remain a notch above their standalone credit profiles, reflecting potential state support. Fitch applies its parent and subsidiary rating linkage methodology to assess the links between DIPG and China Datang Corporation, and between China Datang Corporation and the sovereign. The standalone credit profile of DIPG and the consolidated profile of its parent are assessed as equivalent to 'BB-' before any assessment of state support provides the single- notch uplift. The Stable Outlook reflects Fitch's expectation that the Chinese government will take adequate steps to support Chinese independent power producers such as DIPG -- as evidenced in the retrospective tariff rises for 2010 production in some plants, and April 2010 tariff rises in certain provinces. The Outlook, however, also incorporates Fitch's view that the disparity between coal prices and tariffs will continue and the burden will be primarily born by power producers. Fitch expects DIPG's total adjusted debt/operating EBITDAR to remain above 8.5x over the medium term. However, DIPG and the parent remain exposed to financial deterioration due to a weak thermal power industry and lack of a transparent pass-through mechanism for rising coal prices. However, the risk is partly mitigated by the group's own coal production business. Fitch may take negative rating action if the financial profile of either DIPG or China Datang Corporation deteriorates. GITI TIRE: S&P Affirms 'B-' Corp. Credit Rating; Outlook Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' long-term corporate credit rating on China-based GITI Tire Pte. Ltd. We then withdrew the rating at the company's request. "We also affirmed and then withdrew the 'cnB-' Greater China credit scale rating on GITI," S&P said. "At the time of the withdrawal, the outlook on the GITI rating was negative to reflect our expectation that the company's liquidity was likely to remain strained and the covenant headroom thin over the next 12 months. The outlook also reflected our expectation that the operating environment in China would remain difficult. We believed the tough operating environment was likely to limit upside potential to GITI's cash flow," S&P stated. S&P could have lowered the rating if: GITI's operational performance declined materially and the likelihood increased that the company would breach covenants under a club loan it had taken to refinance its $200 million senior secured notes. "Such a breach in covenants could materialize if: (1) GITI's EBITDA for 2012 was more than 10% lower than our projection of Chinese renminbi (RMB) 1.8 billion. This figure excludes the share of profit from related party PT Gajah Tunggal Tbk. (B/Stable/--); (2) the company undertook large-scale expansion, aggressive shareholders' capital return initiatives, or other related- party transactions that increased debt," S&P related. "GITI's liquidity deteriorated materially, which would have substantially weakened the company's ability to service debt. This could have materialized if: (1) the company was unable to extend the maturity of its club loan beyond 2012; (2) its working capital requirements for 2012 were materially higher than the RMB600 million-RMB700 million we had forecast," S&P said. The company's linkage with PT Gajah Tunggal triggered any material contingent liability. "An upgrade would have been unlikely in the next 12 months because we believed the company's financial structure would remain highly leveraged. We also anticipated only a limited improvement in GITI's margins due to still-high raw material prices. Nevertheless, we could have revised the outlook to stable if GITI's operating performance and cash flow increased substantially, such that the liquidity risk reduced. In our view, this would have required a significant and lasting decline in raw material prices or further substantial increases in prices without jeopardizing the company's market position. We could have also revised the outlook to stable if the maturity on the company's club loan was extended to 2014," S&P said. HUADIAN POWER: Fitch Lowers Rating on Long-Term IDR to 'BB-' ------------------------------------------------------------ Fitch Ratings has downgraded Huadian Power International Limited's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'BB-' from 'BB'. The Outlook is Stable. The agency has simultaneously affirmed its Short-Term Foreign and Local Currency IDRs at 'B'. "The downgrade reflects the weakened financial profile of Huadian Power International and its parent, China Huadian Group, in the face of continued disparity between high coal prices and artificially low electricity tariffs. The impact from slow tariff adjustments is highest for Huadian among Fitch-rated Chinese thermal power producers," notes Steve Cox, Director in Fitch's Asia-Pacific Energy and Utilities team. HDPI and China Huadian Group have, overall, worse interest coverage and leverage profile compared with their respective peers in China, as well as a heavy debt-funded capex programme. Based on Fitch's parent and subsidiary rating linkage methodology, HDPI continues to be notched one level above its standalone credit profile, reflecting potential state support through China Huadian Group. The same methodology is being applied to China Huadian Group, which assesses its links to the sovereign. On a standalone basis, both the credit profiles of HDPI and China Huadian Group have been downgraded to 'B+' from 'BB-', before any assessment of state support. Under current market conditions, the group's asset portfolio has greater exposure to the fundamental problems affecting all thermal power producers in China: a combination of tariff controls, rising coal prices, exposure to non-fulfilment of contract coal, and volatility in the non-contract coal spot market. The company's interest coverage is also negatively affected by the impact of base rate rises on floating-rate loans, and high borrowing costs in the CNY bond market. In FY10, HDPI's funds from operations (FFO) interest coverage fell below 2.0x from 3.0x in FY09. Fitch continues to expect HDPI's total adjusted debt/operating EBITDAR to remain above 10x in the medium term. The Stable Outlook reflects Fitch's expectation that the Chinese government will take adequate steps to support Chinese independent power producers such as HPDI -- as evidenced in the retrospective tariff rises for 2010 production in some plants, and April 2010 tariff rises in certain provinces. The Outlook, however, also incorporates Fitch's view that the disparity between coal prices and tariffs will continue and the burden will be primarily born by power producers. HUANENG POWER: Fitch Affirms Rating on Sr. Unsec. Notes at 'BB+' ---------------------------------------------------------------- Fitch Ratings has affirmed Huaneng Power International Limited's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB+' with a Stable Outlook. The agency has simultaneously affirmed its senior unsecured ratings at 'BB+' and Short-Term Foreign and Local Currency IDRs at 'B'. "The affirmation of the ratings reflects the relatively strong position of HNP and the parent China Huaneng Group in the face of continued disparity between high coal prices and artificially low electricity tariffs," notes Steve Cox, Director in Fitch's Asia- Pacific Energy and Utilities team. HNP and China Huaneng Group retain, overall, slightly higher interest coverage and a better leverage profile compared with their respective peers in China, despite a heavy debt-funded capex programme. Both HNP and China Huaneng Group remain a notch above their standalone credit profiles, reflecting potential state support. Fitch applies its parent and subsidiary rating linkage methodology to assess the links between HNP and China Huaneng Group, and between China Huaneng Group and the sovereign. The standalone credit profile of HNP and the consolidated profile of its parent are assessed as equivalent to 'BB,' before any assessment of state support provides the single-notch uplift. The Stable Outlook reflects Fitch's expectation the Chinese government will take adequate steps to support Chinese independent power producers such as HNP -- as evidenced in the retrospective tariff rises for 2010 production in some plants, and April 2010 tariff rises in certain provinces. The Outlook, however, also incorporates Fitch's view that the disparity between coal prices and tariffs will continue and the burden will be primarily born by power producers. Fitch continues to expect HNP's total adjusted debt/operating EBITDAR to remain above 7x in the medium term. However HNP and China Huaneng Group remain exposed to financial deterioration due to a weak thermal power industry and lack of a transparent pass- through mechanism for rising coal prices. This risk is compounded by the group's low level of integrated coal production, contributing to HNP's high volume of non-contract coal purchases. Fitch may take negative rating action if the financial profile of either HNP or the parent deteriorates. ================ H O N G K O N G ================ LANDFORD HOLDINGS: Members' Final Meeting Set for Nov. 30 --------------------------------------------------------- Members of Landford Holdings Limited will hold their final general meeting on Nov. 30, 2011, at 2:00 p.m., at 3/F., Malaysia Building, at 50 Gloucester Road, Wanchai, in Hong Kong. At the meeting, Yuen Shu Tong, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. LEHMAN BROTHERS: HKMA Reports Progress of Probe on MiniBond Cases ----------------------------------------------------------------- The Hong Kong Monetary Authority (HKMA) announced Oct. 28 that investigation of over 99% of a total of 21,829 Lehman-Brothers- related complaint cases received has been completed. These include: * 15,779 cases, which have been resolved by a settlement agreement reached under section 201 of the Securities and Futures Ordinance; * 2,729 cases, which have been resolved through the enhanced complaint handling procedures required by the settlement agreement; * 2,250 cases, which were closed because insufficient prima facie evidence of misconduct was found after assessment or no sufficient grounds and evidence were found after investigation; * 827 cases (including minibond cases), which are under disciplinary consideration after detailed investigation by the HKMA, of which proposed disciplinary notices are being prepared in respect of 682 such cases and proposed disciplinary notices or decision notices have been issued in respect of the other 145 cases; and * 143 cases in respect of which investigation work has been completed and are going through the decision process to decide whether there are sufficient grounds for disciplinary actions or whether the cases should be closed because of insufficient evidence or lack of disciplinary grounds. Investigation work is underway for the remaining 99 cases. A table summarizing the progress of the disciplinary and complaint-resolution work in respect of Lehman-Brothers-related complaints is available at http://ResearchArchives.com/t/s?773a About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Judge James Peck on Aug. 30, 2011, approved the disclosure statement, which outlines the major provisions of Lehman's $65 billion liquidation plan. The proposed plan would enable LBHI and its affiliated debtors to pay an estimated $65 billion to their creditors. Voting on the Plan ends on Nov. 4, 2011. A hearing to consider confirmation of the Plan is set for Dec. 6, 2011. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) M & T: Members' and Creditors' Annual Meetings Set for Nov. 18 -------------------------------------------------------------- Members and creditors of M & T International Limited will hold their annual meetings on Nov. 18, 2011, at 2:30 p.m., and 3:00 p.m., respectively at Room 1909, Nan Fung Tower, at 173 Des Voeux Road Central, in Hong Kong. At the meeting, Lau Siu Hung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MACAO DRAGON: Lai and Haughey Step Down as Liquidators ------------------------------------------------------ Lai Kar Yan (Derek) and Darach E. Haughey stepped down as liquidators of Macao Dragon Company Limited on Oct. 12, 2011. MODERN BILLIARD: Members' Final Meeting Set for Nov. 30 ------------------------------------------------------- Members of Modern Billiard Club Limited will hold their final meeting on Nov. 30, 2011, at 3:00 p.m., at Suite No. A, 11th Floor, Ritz Plaza, at 122 Austin Road, Tsimhatsui, Kowloon, in Hong Kong. At the meeting, Sung Mi Yin, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA: Creditors' Proofs of Debt Due Nov. 11 ------------------------------------------------ Creditors of The New China Hong Kong Asset Management Limited, which is in creditors' voluntary liquidation, are required to file their proofs of debt by Nov. 11, 2011, to be included in the company's dividend distribution. The company's liquidator is: James Wardell Room 1601-1602, 16th Floor One Hysan Avenue Causeway Bay, Hong Kong NEW CHINA HK: Creditors' Proofs of Debt Due Nov. 11 --------------------------------------------------- Creditors of The New China Hong Kong Development Limited, which is in creditors' voluntary liquidation, are required to file their proofs of debt by Nov. 11, 2011, to be included in the company's dividend distribution. The company's liquidator is: James Wardell Room 1601-1602, 16th Floor One Hysan Avenue Causeway Bay, Hong Kong NEW CHINA HK DEV: Creditors' Proofs of Debt Due Nov. 11 ------------------------------------------------------- Creditors of The New China Hong Kong Development Limited, which is in creditors' voluntary liquidation, are required to file their proofs of debt by Nov. 11, 2011, to be included in the company's dividend distribution. The company's liquidator is: James Wardell Room 1601-1602, 16th Floor One Hysan Avenue Causeway Bay, Hong Kong NEW CHINA HK INDUSTRIAL: Creditors' Proofs of Debt Due Nov. 11 -------------------------------------------------------------- Creditors of The New China Hong Kong Industrial Limited, which is in creditors' voluntary liquidation, are required to file their proofs of debt by Nov. 11, 2011, to be included in the company's dividend distribution. The company's liquidator is: James Wardell Room 1601-1602, 16th Floor One Hysan Avenue Causeway Bay, Hong Kong NEW CHINA HK PROPERTIES: Creditors' Proofs of Debt Due Nov. 11 -------------------------------------------------------------- Creditors of The New China Hong Kong Properties Limited, which is in creditors' voluntary liquidation, are required to file their proofs of debt by Nov. 11, 2011, to be included in the company's dividend distribution. The company's liquidator is: James Wardell Room 1601-1602, 16th Floor One Hysan Avenue Causeway Bay, Hong Kong NEW CHINA HK TRADING: Creditors' Proofs of Debt Due Nov. 11 ----------------------------------------------------------- Creditors of The New China Hong Kong Trading Limited, which is in creditors' voluntary liquidation, are required to file their proofs of debt by Nov. 11, 2011, to be included in the company's dividend distribution. The company's liquidator is: James Wardell Room 1601-1602, 16th Floor One Hysan Avenue Causeway Bay, Hong Kong NEWAYS INTERNATIONAL: Placed Under Voluntary Wind-Up Proceedings ---------------------------------------------------------------- At an extraordinary general meeting held on Oct. 19, 2011, creditors of Neways International (HK) Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Chan Che Wai 17/F., Hing Yip Commercial Centre 272-284 Des Voeux Central, Hong Kong PEGASUS ENTERPRISE: Leung Shi Ho Appointed as Liquidator -------------------------------------------------------- Leung Shi Ho on Oct. 13, 2011, was appointed as liquidator of Pegasus Enterprise Limited. The liquidator may be reached at: Leung Shi Ho 27th Floor, Tung Wai Commercial Building 111 Gloucester Road Wanchai, Hong Kong PEARL SYSTEMS: Heung Sai Kit Steps Down as Liquidator ----------------------------------------------------- Heung Sai Kit stepped down as liquidator of Pearl Systems Technologies Limited on Oct. 24, 2011. QUINWEST COMPANY: Placed Under Voluntary Wind-Up Proceedings ------------------------------------------------------------ At an extraordinary general meeting held on Oct. 10, 2011, creditors of Quinwest Company Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Chan King Sang Leo Unit 1402, 14/F Finance Building 254-256 Des Voeux Road Central, Sheung Wan Hong Kong SECURAIR LIMITED: Members' Final Meeting Set for Nov. 29 -------------------------------------------------------- Members of Securair 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, Chow Tsui Pik, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= ANANGOOR TEXTILE: CRISIL Reaffirms 'B+' Rating on INR215MM Loan --------------------------------------------------------------- CRISIL's ratings on the bank facilities of Anangoor Textile Mills Pvt Ltd continue to reflect Anangoor's weak financial risk profile and susceptibility to volatility in raw material prices. These weaknesses are partially offset by Anangoor's established market position in the textile industry. Facilities Ratings ---------- ------- INR215 Million Term Loan CRISIL B+/Stable (Reaffirmed) INR130 Million Cash Credit CRISIL B+/Stable (Reaffirmed) INR8.3 Million Bank Guarantee CRISIL A4 (Reaffirmed) Outlook: Stable CRISIL believes that Anangoor maintain a stable credit risk profile over the medium term, on the back of its established position in textile industry. The outlook may be revised to 'Positive' if Anangoor's financial risk profile improves, most likely driven by substantial increase in cash accruals or capital infusions. Conversely, the outlook may be revised to 'Negative' if Anangoor's cash flows and margins decline, or if its capital structure weakens because of larger-than-expected debt-funded capital expenditure (capex). About Anangoor Textile Anangoor was established as a partnership firm in 1995 by Mr. K Ramasamy and Mr. C Palanisamy. The company manufactures cotton yarn of count size ranging from 8s to 30s. The company has two manufacturing units, one each in Kanageyam and Anangoor (Tamil Nadu). Anangoor reported, on provisional basis, a profit after tax (PAT) of INR43 million on a turnover of INR794 million for 2010-11 (refers to financial year, April 1 to March 31); it reported a PAT of INR8 million on a turnover of INR533 million for 2009-10. ANDHRA GINNING: CRISIL Assigns 'CRISIL B' Rating to INR35MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of Andhra Ginning Lane Pvt Ltd. Facilities Ratings ---------- ------- INR35 Million Term Loan CRISIL B/Stable (Assigned) INR60 Million Cash Credit CRISIL B/Stable (Assigned) INR5 Million Proposed LT CRISIL B/Stable (Assigned) Bank Loan Facility The rating reflects AGLPL's exposure to volatility in cotton prices, susceptibility to adverse regulatory changes, and large working capital requirements. These rating weaknesses are partially offset by the extensive experience of AGLPL's management in the cotton industry. Outlook: Stable CRISIL believes that AGLPL will maintain its business risk profile over the medium term, supported by the management's extensive experience in the cotton industry. The outlook may be revised to 'Positive' in case of successful stabilisation of the ongoing project and generation of cash flows commensurate with the debt service commitments. Conversely, the outlook may be revised to 'Negative' if AGLPL faces delays in commissioning its project, thereby adversely impacting its debt servicing capabilities. About Andhra Ginning AGLPL was incorporated in November 2008, for setting up a cotton ginning mill in Guntur, Andhra Pradesh. The mill is expected to be set up with 36 fully automated gins and one automatic hydraulic baling press. The mill has installed capacity of 30,494 bales per annum. The promoters also have plans to utilize its surplus capacity for undertaking job work for Cotton Corporation of India (CCI) and other parties. The project cost is estimated to cost around INR65 million and will be financed through term loans of INR35 million and the remaining will be from funded via promoter's own capital by way of equity and unsecured loans. AGLPL is promoted by Sri Nagothu Sleeva Raju and Smt Buchamma Koteswara Rao. Sri Nagothu Sleeva Raju, is the director of the company. Sri Kunkalaguntla Koteswara Rao, father in law of Sri Nagothu Sleeva Raju, will be associated as a consultant to the company. Mr. Koteswara Rao has extensive experience of more than three decades in cotton trading. The company's ginning operations are expected to commence from December 2011. The management has commenced trading in raw cotton from March 2011. BADRI VISHAL: CRISIL Assigns 'CRISIL D' Rating to INR75MM Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the long-term bank facilities of Badri Vishal Agro Pvt Ltd. Facilities Ratings ---------- ------- INR75 Million Term Loan CRISIL D (Assigned) INR30 Million Cash Credit CRISIL D (Assigned) The rating reflects instances of delay by BVAPL in servicing its debt; the delays have been caused by the company's weak liquidity as the company's operations are yet to commence and is currently under project implementation phase. BVAPL also has a weak financial risk profile, marked by a small net worth and high gearing, and exposure to intense competition from large and established players in the processed food segment. These rating weaknesses are partially offset by BVAPL's low offtake risk due to marketing tie-up with Otdin Food Solutions Pvt Ltd and the extensive industry experience of its management. About Badri Vishal BVAPL was incorporated in November 2010. It is setting up a manufacturing unit for the production of potatoes chips and extruded snacks in Bhind (Madhya Pradesh). The company plans to install an annual production capacity of 1500 tonnes of potato chips and 1200 tonnes of extruded snacks; the plant is expected to commence commercial operations from November 2011 onwards. The company plans to launch its product under its brand, Fatak, for its potato chips and Satak for extruded snacks. CALSTAR SPONGE: CRISIL Places CRISIL BB- Rating on INR100MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable' rating to the bank facilities of Calstar Sponge Ltd. Facilities Ratings ---------- ------- INR50.0 Million Cash Credit CRISIL BB-/Stable (Assigned) INR100.0 Million Term Loan CRISIL BB-/Stable (Assigned) The rating reflects the benefits that CSL derives from its proximity to markets, its moderately integrated operations, and its promoters' experience in the steel industry. These rating strengths are partially offset by CSL's small scale of operations, exposure to risks related to cyclicality in the steel industry, and large debt funded capital expenditure (capex) plans. Outlook: Stable CRISIL believes that the CSL will continue to benefit over the medium term from its promoters' industry experience. The outlook may be revised to 'Positive' if the company improves its scale of operations and profitability. Conversely, the outlook may be revised to 'Negative' if CSL faces significant pressure on its revenues and profitability because of adverse market conditions, or if it undertakes a larger-than-expected, debt-funded capex programme, thereby weakening its capital structure. About Calstar Sponge CSL was incorporated in 2004. The company, promoted by Mr. Tulsi Ram Agrawal and Mr. Vikas Agarwal, manufactures sponge iron and mild steel ingots. The company has two indigenously developed kilns, with an aggregated capacity of 60,000 tonnes per annum (tpa), and two induction furnaces with capacity of 40,000 tpa. The above-mentioned facilities are at Bamunara and Jamuria (both in West Bengal). CSL has reported a profit after tax (PAT) of INR5 million on an operating income of INR887 million for 2010-11 (refer to financial year, April 1 to March 31), against a PAT of INR6 million on an operating income of INR565 million for 2009-10. CALCAST FERROUS: CRISIL Rates INR58.5 Million Loan at 'CRISIL BB' ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to the bank facilities of Calcast Ferrous Ltd, part of the Calspring group. Facilities Ratings ---------- ------- INR58.50 Million Cash Credit CRISIL BB/Stable (Assigned) INR5.0 Million Letter of Credit CRISIL A4+ (Assigned) INR40.00 Million Bank Guarantee CRISIL A4+ (Assigned) The ratings reflect the benefits that the group derives from its promoter's industry experience, its established market position, and its wide product portfolio. These rating strengths are partially offset by the Calspring group's high customer concentration, intense industry competition, and working-capital- intensive operations. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of CFL, Calcutta Springs Ltd, and Calcutta Steel Ltd. This is because these entities, together referred to as the Calspring group, have a common management, cross holdings, are in a similar line of operations, and share operational and financial linkages with each other. Outlook: Stable CRISIL believes that the Calspring group will continue to benefit over the medium term from its established market position in the railway track components segment and its promoters' industry experience. The outlook may be revised to 'Positive' in case of more-than-expected improvement in operating income and profitability, leading to improvement in the group's financial risk profile. Conversely, the outlook may be revised to 'Negative' if the Calspring group generates a lower-than-expected operating margin or undertakes significantly debt-funded capital expenditure programmes over the medium term, leading to further deterioration in its financial risk profile. About Calcast Ferrous The Calspring group was founded by Kolkata (West Bengal)-based Mr. Tulsi Ram Agarwal. Incorporated in 1989, CSL is the flagship company of the group. Subsequently, the promoter floated CFL and Cal Steel in 1990s. The group manufactures railway track materials for Indian Railways (IR) for the past 25 years. It supplies materials such as switches and crossings, switch expansion joints, spring settling devices, SGCI inserts, elastic rail clip Mk-III, fish plates and fish bolts, pre-stressed monoblock concrete sleepers, ductile iron cast fittings, glass filled nylon-66 insulating liners, grooved rubber sole plates, lower and upper rubber washer, high capacity rubber buffer springs, single piece louvre shutters, two piece glass shutters, window assemblies, and composite modular toilets. The Calspring group's day-to-day operations are managed by Mr. Tulsi Ram Agarwal and his three sons. The Calspring group products are sold to most of the zonal offices of IR through tendering process. As per the directives of IR, only companies approved by the Research Designs and Standards Organisation can manufacture and supply track materials. Cal Steel also has warehouse space of 0.2 million square feet, which is currently rented out to ITC Ltd (rated CRISIL AAA/Stable/CRISIL A1+). The Calspring group's manufacturing facility is in Alampur, Uluberia, Bighati, Sandhipur, Howrah (all in West Bengal), Girisola (Orissa), and Kanpur (Uttar Pradesh). The Calspring group has reported a profit after tax (PAT) of INR24 million on an operating income of INR1344 million for 2010- 11 (refers to financial year, April 1 to March 31), against a PAT of INR27 million on an operating income of INR1134 million for 2009-10. H'RECK ENGINEERS: CRISIL Puts 'CRISIL B' Rating on INR7.2MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of H'Reck Engineers Pvt Ltd. Facilities Ratings ---------- ------- INR7.2 Million Rupee Term Loan CRISIL B/Stable (Assigned) INR83.5 Million Cash Credit CRISIL B/Stable (Assigned) INR90 Million Bank Guarantee CRISIL A4 (Assigned) The ratings reflect HEPL's weak financial risk profile, marked by small net worth and high gearing, and susceptibility of its profit margin to intense competition in the business of civil construction for industrial applications. These weaknesses are partially offset by HEPL's established market position. Outlook: Stable CRISIL believes that HEPL will maintain its moderate business risk profile on the back of its established market position over the medium term. The outlook may be revised to 'Positive' HEPL sustains its revenue growth and maintains its profitability, while improving its debtor collection cycle. Conversely, the outlook may be revised to 'Negative' if HEPL's financial risk profile deteriorates, most likely because of decline in operating profitability, larger-than-expected debt-funded capital expenditure, or weakening in liquidity because of further stretch in receivables cycle. About H'Reck Engineers HEPL, established as a proprietorship firm in 1984, was reconstituted as a private limited company in 1995. It provides engineering and civil construction solutions, including fabrication of storage tank and industrial piping, and also undertakes structural work and foundation layouts for various industries. The projects executed by the company are tender based. HEPL's profit after tax (PAT) and net sales are estimated at INR20.9 million and INR438 million respectively for 2010-11 (refers to financial year, April 1 to March 31); the company reported a PAT of INR10.7 million on net sales of INR378.7 million for 2009-10. INDIAN TERRAIN: CRISIL Places 'CRISIL B+' Rating on INR300MM Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Indian Terrain Fashions Ltd. Facilities Ratings ---------- ------- INR300 Million Cash Credit CRISIL B+/Stable (Assigned) INR258.7 Million Long-Term Loan CRISIL B+/Stable (Assigned) INR49.8 Million Proposed LT CRISIL B+/Stable (Assigned) Bank Loan Facility INR50 Million Bill Discounting CRISIL A4 (Assigned) INR135 Million Letter of Credit CRISIL A4 (Assigned) INR2 Million Packing Credit CRISIL A4 (Assigned) The ratings reflect ITFL's below-average financial risk profile, marked by high gearing and moderate debt protection metrics. The rating also factors in limited pricing flexibility and vulnerability to intense competition from global and Indian ready-made-garment (RMG) brands. These rating weaknesses are partially offset by ITFL's established brand in retailing of RMG and healthy demand prospects in the domestic retail segment. Outlook: Stable CRISIL believes that ITFL will continue to benefit over the medium term from its established brand and the healthy demand prospects in the domestic RMG industry. The outlook may be revised to 'Positive' if the company scales up its operations supported by an improvement in financial risk profile on a sustainable basis. Conversely, the outlook may be revised to 'Negative' if ITFL undertakes a large debt-funded capital expenditure programme, or in case of delay in realisation of receivables, or if there are large investments made in group companies, leading to a further weakening in its financial risk profile. About Indian Terrain ITFL was incorporated in September 2009. The domestic retail division of Celebrity Fashions Ltd with its in-house brand, Indian Terrain, was demerged from CFL following the Madras High Court order in August 2010. The demerger was aimed at managing the profitable domestic retail operations of Indian Terrain separately from the loss-making export business of CFL. ITFL currently retails RMG, such as shirts, trousers, T-shirts, jackets, and sweaters. The company was listed on the National and Bombay Stock Exchanges in March 2011. ITFL operates from 75 exclusive retail outlets, 25 large format retailers (Shoppers Stop Limited, Lifestyle International Pvt Ltd, Trent Limited, Globus Stores Pvt Ltd, and Pantaloon Retail India Ltd), and around 400 high-street multi-brand retail outlets. The company's day-to-day operations are managed by Mr. V Rajagopal (chairman and managing director) and his wife, Mrs. Rama Rajagopal. ITFL reported a profit after tax (PAT) of INR63.1 million on net sales of INR1.2 billion for 2010-11 (refers to financial year, April 1 to March 31). KINGFISHER AIRLINES: Denies Report on Debt Restructuring Plan ------------------------------------------------------------- The Economic Times reports that Kingfisher Airlines on Wednesday denied it was going for another debt restructuring but said it had sought lenders' help to substitute high-cost rupee borrowings with low-cost foreign current debt. According to the report, Ravi Nedungadi, President and group Chief Financial Officer, said in a statement that the carrier has also asked banks to "appraise working capital requirements in the usual course, to account for changes in international prices of fuel and the change in rupee-dollar parity." "The banks are in active consideration of these requests and there is absolutely no question of another debt recast," the report quotes Mr. Nedungati as saying. The Economic Times earlier reported that Vijay Mallya-promoted Kingfisher's second debt restructuring plan was rejected by banks who were unwilling to take a fresh haircut and feared another recast will force them to treat the loans as non-performing. About Kingfisher Airlines Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/-- formerly known as Deccan Aviation Ltd., serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known for its United Breweries unit, and the carrier shares the Kingfisher brand with a popular Indian beer. UB Holdings also owns a stake in another domestic carrier, Air Deccan, whose operations it combined with Kingfisher Airlines in mid-2008. Kingfisher Airlines began flying in 2005. * * * Kingfisher Airlines has lost money six years in a row, accumulating net debt of INR77.2 billion (US$1.74 billion) as of March 2010, according to data compiled by Bloomberg. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 16, 2011, The Economic Times said Kingfisher Airlines Ltd. has found itself parrying questions about its survival after its auditor raised doubts over the company's ability to stay in business for long. Audit firm BK Ramadhyani & Co, which examined the books of the airline, said in remarks published in the airline's annual report that Kingfisher's ability to remain a "going concern" will depend on its promoters bringing in money into the company. The auditors also said Kingfisher has not deposited with the government money it collected from employees as tax deducted at source and provident fund contribution, painting a dire picture of the airline's finances, The Economic Times reported. MERU AUTOMOBILES: CRISIL Puts 'CRISIL BB' Rating on INR200MM Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable' rating to the long- term bank facilities of Meru Automobiles Pvt Ltd. Facilities Ratings ---------- ------- INR200 Million Cash Credit CRISIL BB/Stable (Assigned) INR15 Million Long-Term Loan CRISIL BB/Stable (Assigned) The rating reflects extensive experience of Meru's promoters in the commercial vehicles distributorship business and established market position in the automobile dealership business in the Rayalaseema region (Andhra Pradesh [AP]). This rating strength is partially offset by Meru's weak financial risk profile, marked by a high total outside liabilities to tangible net worth ratio and weak debt protection metrics, susceptibility to intense competition in the commercial vehicles industry, and low bargaining power with its principal, Tata Motors Ltd (TML; rated 'CRISIL AA-/Stable/CRISIL A1+'). Outlook: Stable CRISIL believes that Meru will continue to benefit from its established market position in the automobile dealership business in Rayalaseema and healthy demand for TML's commercial vehicles. The outlook may be revised to 'Positive' if Meru's financial risk profile improves, most likely driven by an increase in its scale of operations, and improvement in its profitability, capital structure and debt protection metrics. Conversely, the outlook may be revised to 'Negative' in case a slowdown in the automobile industry adversely affects Meru's revenues and profitability, or if the company undertakes any large debt-funded capital expenditure programme, thereby weakening its capital structure. About Meru Automobiles Set up in 2002 by Mr. V Rajaram Mohan and his family members, Meru is an authorised dealer of TML's commercial vehicles in AP. Meru is the sole distributor for TML's commercial vehicles in Kurnool, Kadapa and Anantapur districts in AP. It has three showrooms and services stations in AP. Meru reported, on provisional basis, a profit after tax (PAT) of INR4.2 million on net sales of INR1.6 billion for 2010-11 (refers to financial year, April 1 to March 31); the company reported a PAT of INR3.6 million on net sales of INR1.3 billion for 2009-10. NIMRA EDUCATIONAL: CRISIL Places CRISIL D Rating on INR70MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the bank facilities of Nimra Educational Society. Facilities Ratings ---------- ------- INR70 Million Term Loan CRISIL D (Assigned) INR10 Million Overdraft Facility CRISIL D (Assigned) The rating reflects instances of delay by NES in servicing its debt; the delays have been caused by the society's weak liquidity. NES is also exposed to intense competition and to high degree of regulation in the education sector. NES, however, benefits from its moderate financial risk profile, marked by a comfortable gearing and moderate debt protection metrics, established brand name, and diverse educational courses. NES was set up in 1991 by Dr. Mohammed Vizarath Rasool Khan under the Andhra Pradesh Societies Registration Act, 1350 Fasli. The society operates seven colleges in and around Vijayawada and Ongole (both in Andhra Pradesh), offering varied courses, such as bachelor of technology, bachelor of pharmacy, master of technology, master of computer application, master of pharmacy, and master of business administration. Currently, NES runs five engineering colleges, one pharmacy college, and one business management college, with total student strength of around 2000. All the colleges are affiliated to the Jawaharlal Nehru Technical University, Kakinada (Andhra Pradesh). The society plans to open a medical college affiliated to Dr. Nandamuri Taraka Rama Rao University of Health Sciences (NTR University) with student strength of 150 and a 300-bed hospital by 2013-14 (refers to financial year, April 1 to March 31). The total cost of the medical college and hospital project is expected to be around INR1000 million. NES reported a profit before tax (PBT) of INR41.85 million on net sales of INR148.10 million for 2010-11, against a PBT of INR16.77 million on net sales of INR113.31 million for 2009-10. ROOPA INDUSTRIES: CRISIL Puts 'CRISIL BB' Rating to INR2.9MM Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to the bank facilities of Roopa Industries Ltd. Facilities Ratings ---------- ------- INR2.9 Million SME Credit CRISIL BB/Stable (Assigned) INR23 Million Cash Credit CRISIL BB/Stable (Assigned) INR12.1 Million Proposed LT CRISIL BB/Stable (Assigned) Bank Loan Facility INR5 Million Bill Discounting CRISIL A4+ (Assigned) INR25 Million Letter of Credit CRISIL A4+ (Assigned) INR2 Million Bank Guarantee CRISIL A4+ (Assigned) The ratings reflect RIL's above-average financial risk profile, marked by healthy gearing and debt protection metrics, its established business risk profile aided by extensive experience of its promoter in the bulk drugs segment, and its established customer relationships. These rating strengths are partially offset by RIL's small scale of operations and its susceptibility to customer and product concentration and to intense competition in the bulk drugs segment. Outlook: Stable CRISIL believes that RIL will continue to benefit over the medium term from its established position in the bulk drugs market. The outlook may be revised to 'Positive' if the company enhances its scale of operations and net worth and diversifies its revenue profile, while sustaining its profitability. Conversely, the outlook may be revised to 'Negative' if RIL's profitability declines steeply, or if it undertakes a large debt-funded capital expenditure programme, leading to weakening in its financial risk profile. About Roopa Industries Established as Roopa Granites Pvt Ltd in 1985, RIL was reconstituted as a limited company in 1996 and also got its current name. RIL manufactures drug intermediates and bulk drugs. The company's promoter-director, Mr. T G Raghavendra, has experience of more than two decades in similar lines of business. RIL has niche chemistry skills in sodium metal reactions, which find application in the synthesis of organic and organo-metallic compounds. RIL reported a profit after tax (PAT) of INR5 million on net sales of INR321 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR3 million on net sales of INR277 million for 2009-10. SRI SELVAKUMAR: CRISIL Assigns CRISIL BB- Rating to INR70MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable' rating to the bank facilities of Sri Selvakumar Mills Pvt Ltd. Facilities Ratings ---------- ------- INR105 Million Cash Credit CRISIL BB-/Stable (Assigned) INR70 Million Long Term Loan CRISIL BB-/Stable (Assigned) The rating reflects the benefits that SSM derives from its promoters' experience in the textile industry and its moderately integrated operations. The rating also factors in the company's moderate financial risk profile marked by a comfortable gearing and debt protection metrics. These rating strengths are partially offset by SSM's working-capital-intensive and small scale of operations in the intensely competitive textiles industry. Outlook: Stable CRISIL believes that SSM will benefit over the medium term from its established customer base and promoters' industry experience. The outlook may be revised to 'Positive' if the company significantly scales up its operations, while maintaining its healthy operating margin, resulting in an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if there is deterioration in SSM's relationship with its key customers, leading to a considerable drop in its revenues, or in case of deterioration in working capital management resulting in stretched liquidity or if the company undertakes a large, debt-funded capital expenditure programme resulting in deterioration in its financial risk profile. About Sri Selvakumar Set up as a partnership firm in 1982, SSM was reconstituted as a private limited company in 2004 and is managed by Mr. V.K. Kumaresan. The company derives majority of its revenues through the supply of grey fabric used in the manufacture of shirt collars, cuffs and trouser accessories.. SSM has its manufacturing unit in Coimbatore (Tamil Nadu), with an installed capacity of 3000 rotors and a weaving unit with 30 air-jet and 20 Sulzer looms. Its key customers include Bombay Dyeing, Shri Lakshmi Cotsyn Ltd, and Micro Interlining Ltd, who accounted for around 25 per cent of its revenues during 2010-11. SSM reported a profit after tax (PAT) of INR0.8 million on net sales of INR260 million for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR0.18 million on net sales of INR183 million for 2009-10. SRINIVASA CONSTRUCTION: CRISIL Rates INR300MM Loan at 'CRISIL B' ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Srinivasa Construction Company. Facilities Ratings ---------- ------- INR300 Million Overdraft Facility CRISIL B/Stable (Assigned) INR200 Million Bank Guarantee CRISIL A4 (Assigned) The ratings reflect SCC's weak financial risk profile, marked by a small net worth, high gearing, and moderate debt protection metrics, large working capital requirements, and moderate scale of operations with dependence on government projects. These rating weaknesses are partially offset by the extensive experience of SCC's partners in executing irrigation projects and its healthy order book. Outlook: Stable CRISIL believes that SCC will benefit over the medium term from its partners' extensive industry experience and its strong order book. The outlook may be revised to 'Positive' in case of improvement in SCC's gearing, driven by improved working capital cycle or better-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' if there is pressure on SCC's liquidity on account of substantial debt-funding of capital expenditure or working capital requirements. About Srinivasa Construction Set up in 1994 as a partnership firm by Mr. B V Rama Rao and his family members, SCC executes irrigation projects mainly for government and semi-government organisations. The firm's operations are predominantly in Maharashtra, though it also undertakes projects in Andhra Pradesh and Madhya Pradesh. As of July 01, 2011, SCC has a healthy order book of about INR11500 million, of projects to be completed over the next four years. SCC has four joint ventures (JVs) with other firms. The JVs help SCC qualify for financial and technical bidding on projects in which it would not have qualified on its own. The JVs sub- contract the project to the JV partners, in proportion to their holding. SCC reported, on provisional basis, a profit after tax (PAT) of INR 68.2 million on net sales of INR 1400.0 million for 2010- 11(refers to financial year, April 1 to March 31). The firm reported a PAT of INR 63.6 million on net sales of INR 1191.4 million for 2009-10. S V ENGINEERING: CRISIL Assigns 'CRISIL D' Rating to INR45MM Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' ratings to the bank facilities of S V Engineering Constructions (India) Pvt Ltd. Facilities Ratings ---------- ------- INR45 Million Cash Credit CRISIL D (Assigned) INR10 Million Proposed Cash CRISIL D (Assigned) Credit Limit INR15 Million Bank Guarantee CRISIL D (Assigned) The ratings reflect SVECIPL's continuously overdrawn cash credit limits for more than 30 days, mainly because of weak liquidity. SVECIPL also has a weak financial risk profile, marked by a high gearing and a small net worth, and working/capital-intensive operations. SVECIPL, however, benefits from its promoters' extensive experience in the bulk material handling equipment business. About S V Engineering Set up in 2005, SVECIPL undertakes erection and maintenance of bulk material handling equipment and systems used in ports; it undertakes erection, commissioning, and maintenance of stacker reclaimers and ship unloading equipment, and conveyor systems. SVECIPL is based in Visakhapatnam (Andhra Pradesh) and is promoted by Mr. Gummadi Veera Mohan and his family. SVECIPL reported a provisional profit after tax (PAT) of INR7 million on net sales of INR139 million for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR5 million on net sales of INR55 million for 2009-10. SWAMI FEEDS: CRISIL Assigns CRISIL BB+ Rating to INR92MM LT Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to the bank facilities of Swami Feeds Pvt Ltd. Facilities Ratings ---------- ------- INR120 Million Cash Credit CRISIL BB+/Stable (Assigned) INR92 Million Long Term Loan CRISIL BB+/Stable (Assigned) INR20 Million Letter of Credit CRISIL A4+ (Assigned) The ratings reflect SFPL integrated operations and its promoters' extensive experience in the poultry industry. These rating strengths are partially offset by SFPL's below-average financial risk profile, marked by small networth and high gearing, modest scale of operations, and susceptibility to risks inherent in the poultry industry. Outlook: Stable CRISIL believes that SFPL will continue to benefit from the healthy demand for its products and its established position in the poultry industry. The outlook may be revised to 'Positive' if the company is able to scale up its operations and profitability on a sustained basis and reports an improvement in its capital structure. Conversely, the outlook may be revised to 'Negative' if there is a time or cost overrun in its ongoing capital expenditure (capex), or if the company undertakes a larger-than- expected debt-funded capex programme or if there is any significant fund support provided to any of its group entities or drop in profitability due to outbreak of diseases. About Swami Feeds Set up in 1987 by Mr. P Muthswamy in Tirupur (Tamil Nadu), SFPL is in the poultry business. The company's facilities are vertically integrated with brooder farms, hatcheries, and broiler farms. The company has a capacity to place around 500,000 Day-Old Chicks (DOCs) in broiler farms per week. The company derives majority of its revenues from wholesalers in Tamil Nadu. SFPL is expanding its capacities to place 650,000 DOCs per week and a feed mill with an installed capacity of 5,000 tonnes per month at a total cost of INR132.2 million, which is being funded with term loans of INR92.2 million and equity. The promoter also manages two other entities, PKM Hatchery Pvt Ltd and Swami Agencies, which manage two brooders farms and one feed mill, respectively, and are engaged in activities for SFPL on a job-work basis. SFPL's daily operations are managed by Mr. P Muthuswamy and his family members. SFPL reported a profit after tax (PAT) of INR23.0 million on net sales of INR1.65 billion for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR9.4 million on net sales of INR1.2 billion for 2009-10. TITAN EDUCATIONAL: CRISIL Puts CRISIL BB Rating on INR230MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable' rating to the long- term bank facilities of Titan Educational Trust. Facilities Ratings ---------- ------- INR230.00 Million Long-Term Loan CRISIL BB/Stable (Assigned) INR10.00 Mil. Overdraft Facility CRISIL BB/Stable (Assigned) The rating reflects Titan's above-average financial risk profile, marked by comfortable gearing levels and debt protection metrics and the benefits Titan derives from its diverse course offerings and healthy demand prospects for higher education. These rating strengths are partially offset by Titan's exposure to risks related to intense competition and regulatory changes in the education sector. Outlook: Stable CRISIL believes that Titan will continue to benefit over the medium term from its diverse presence across the educational spectrum and its moderate capital structure. The outlook may be revised to 'Positive' if the trust increases its scale of operations substantially, most likely by increasing the number of courses it offers or by extending its geographical reach. Conversely, the outlook may be revised to 'Negative' if Titan undertakes any large debt-funded capital expenditure programme resulting in deterioration in financial risk profile or faces any adverse regulatory change, resulting in significant decline in its student intake or its cash accruals. Established in 2005, Titan operates six educational institutions in Natham (Tamil Nadu [TN]) under the brand name N.P.R. The trust offers courses in engineering, polytechnic, teacher training, arts, and science. The total student strength across the six colleges is around 4000. The trust has a healthy annual intake of around 1400 students. Titan is managed by Mr. Janakar and Mr. Mohan Kumar, who are family friends. Titan is estimated to have reported a surplus of INR33.7 million on net income of INR 144.6 million for 2010-11 (refers to financial year, April 1 to March 31), as against a surplus of INR 26.5 million on net income of INR 113.1 million for 2009-10. TITANIUM IMPORTS: CRISIL Puts 'CRISIL B+' Rating on INR10MM Loan ---------------------------------------------------------------- CRISIL has assigned its ratings of 'CRISIL B+/Stable/CRISIL A4' to the bank facilities of Titanium Imports and Exports Pvt Ltd. Facilities Ratings ---------- ------- INR10 Million Proposed Long-Term CRISIL B+/Stable (Assigned) Bank Loan Facility INR240 Million Letter of Credit CRISIL A4 (Assigned) INR1000 Million Proposed Short- CRISIL A4 (Assigned) Term Bank Loan Facility The ratings reflect the company's limited track record of operations and low financial flexibility. These rating weaknesses are partially offset by the healthy demand prospects for imported urea because of lower production capacity of urea in India. Outlook: Stable CRISIL believes that TPL will scale up its operations over the medium term backed by its experienced management team and order in hand. CRISIL also believes that TPL's promoters will continue to provide financial support to the company through unsecured loans to meet its funding requirement. The outlook may be revised to 'Positive' if TPL scales up its operations adding more diversity in its sourcing tie-ups and clientele resulting in stability in its business risk profile. Conversely, the outlook may be revised to 'Negative' in case of any large, debt-funded capital investment by TPL and/or pressure on the company's profitability significantly deteriorating its capital structure. About Titanium Imports Incorporated in 2010, TPL is a part of SAS group, which is managed by Mr. Sanjay Seth and Mr. Khalid Masood. TPL was set up with an objective to trade in imported fertilizer, mainly urea. TPL commenced operations in May 2011 by getting an order from Indian Potash Ltd to supply 25,000 tonnes of urea. VINAYAK OIL: CRISIL Assigns 'CRISIL BB+' Rating to INR30MM Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to the bank facilities of Vinayak Oil and Fats Private Limited, part of the Edible group. Facilities Ratings ---------- ------- INR30.0 Mil. Cash Credit Limit CRISIL BB+/Stable (Assigned) INR180.0 Million Foreign Letter CRISIL A4+ (Assigned) of Credit INR3.0 Million Bank Guarantee CRISIL A4+ (Assigned) The ratings reflect the Edible group's established market position in the vegetable oil industry in Eastern India, government incentives, and comfortable capital structure resulting from capital infusion by the promoters. These rating strengths are partially offset by the susceptibility of the Edible group's margins to volatility in crude palm oil prices and foreign exchange rates, pressure on its margins, and susceptibility to intense competition and government regulations. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Budge Budge Refineries Ltd (BBRL), Kanchan Oil & Industries Ltd (KOIL), VOFL, Edible Product (India) Ltd (EPIL), and Edible Agro Products Ltd (EAPL). This is because these entities, together referred to as the Edible group, have a common management, are in a similar line of operations, and share operational and financial linkages. Outlook: Stable CRISIL believes that the Edible group will continue to benefit over the medium term from its established market position in East India and promoters' extensive experience in manufacturing vegetable oil and vanaspati. The outlook may be revised to 'Positive' if the group successfully scales up its operations and further improves its market position, resulting in increase in revenues and profitability. Conversely, the outlook may be revised to 'Negative' if it reports sluggish growth in revenues and profitability, or undertakes large debt-funded capital expenditure programme. About the Group EPIL, the flagship company of the group has installed refining capacity of 30 tpd at Paikpara (WB) and in-house packaging unit. Subsequently the packaging unit was transferred to VOFL in April 2010. EPIL was co-promoted by Pawan Saraf, Ramawtar Agarwal and Sita Ram Agarwal. VOFL, located in Howrah (WB) started commercial production in 1999 with an installed refining capacity of 80 tpd and in-house packaging unit. EAPL, located in Howrah (WB) commenced production in 2003. It has an oil milling capacity of 25 tpd. The raw material (sesame seeds) is procured directly from the farmers. The company primarily exports sesame oil to China, Germany and Malaysia under the brand 'Til Drop'. BBRL, located in Kolkata (WB) is engaged in manufacturing of vegetable oil and Vanaspati. It has an installed capacity of 300 tonnes per day (tpd) for oil refining, 125 tpd for interesified vegetable oil and 0.65MW cogen power. KOIL, located in Midnapore (WB) was also acquired by the Edible group in 1996. It has a refining, blending and vanaspati capacity of 50 tpd, 65 tpd and 100 tpd respectively. The raw material is imported from Indonesia or Malaysia. BBRL and KOIL is co-promoted by family members of Ramawtar Agarwal, Shyam Sundar Nangalia, Pawan Saraf and Ramesh Agarwal (son of Sita Ram Agarwal). The group products are sold under the brand names, Sathi and Sathi Gold (palm oil, soya & rice bran oil), Navbhojans, Shiva & Pavitra (vanaspati), Doctors Choice (premium blended oil), KMP (palm oil) and Srimati (mustard oil). Branded sales account for about 40 per cent of sales of the group. Approximately 70 per cent of sales are made in the WB state, while the balance is sold in other states, mainly Uttar Pradesh, Bihar, Jharkhand, Punjab, Orissa and Assam. Currently the day-to-operations of the group is managed by the family members of Ramawtar Agarwal, Pawan Saraf and Ramesh Agarwal. The Edible group reported a profit after tax (PAT) of INR9 million on net sales of INR6939 million for 2009-10 (refers to financial year, April 1 to March 31), as against a loss of INR214 million on net sales of INR5808 million for 2008-09. ========= J A P A N ========= TAKEFUJI CORP: Tokyo Court Approves Rehabilitation Plan ------------------------------------------------------- Bloomberg News reports that Takefuji Corp.'s rehabilitation plan was approved by the Tokyo District Court, paving the way for the bankrupt Japanese consumer lender's proposed sale to South Korean firm A&P Financial Co. Bloomberg relates that Eiichi Obata, an attorney overseeing the turnaround, said in a statement that the court endorsed the proposal submitted on July 15. The company plans to sell assets and secure funds in a bid to repay its debt, it said. The Troubled Company Reporter-Asia Pacific, citing Dow Jones Newswires, reported on July 19, 2011, that Takefuji's court- appointed administrator said the company submitted its rehabilitation plan to the Tokyo District Court on July 15. Under the plan, Takefuji will be rebuilt through a spin-off, with one entity being run by A&P Financial Co. under the Takefuji brand and the other entity to be used for repaying the claims of Takefuji's borrowers and then liquidated. Based on current cash in hand, Dow Jones disclosed, the failed consumer lender plans to pay at least 3.3% (or approximately JPY50 billion) of claims from customers demanding refunds on excessive loan interest charges. Dow Jones noted that the percentage for distribution to creditors may be boosted if Takefuji can claw back some of the billions of dollars it paid out in taxes, dividends and other payments before its bankruptcy or sell some of its real estate. The repayments are to be made within a year of the rehabilitation plan's approval by the court, Dow Jones added. About Takefuji Takefuji Corporation (TYO:8564) -- http://www.takefuji.co.jp/-- is a Japan-based company mainly engaged in the consumer finance business. The Company operates in two business segments. The Consumer Finance segment covers the loan and credit card businesses. The Others segment is involved in the operation of golf courses, the development, management and leasing of real estate, the venture capital business, as well as the investment business, among others. The Company has eight subsidiaries. Takefuji filed a bankruptcy petition with the Tokyo District Court on Sept. 28, 2010, with debts of JPY433.6 billion. Bloomberg News has said the company has become the biggest casualty of Japan's four-year crackdown on coercive lending practices by consumer finance companies. The lender is seeking to restructure as borrower claims of overpaid interest are estimated to exceed JPY1 trillion. ========= K O R E A ========= KOREA EXCHANGE: Lone Star Loses Major Shareholder Status -------------------------------------------------------- The Korea Herald reports that Lone Star Funds lost the status of biggest shareholder of Korea Exchange Bank on Saturday as the U.S.-based equity fund failed to meet the eligibility requirements set by financial regulators. According to the report, the fund's position of losing, or being banned from exercising voting rights for its stake exceeding 10 percent, comes after a recent court ruling in Seoul that Lone Star engaged in manipulation of stocks of KEB's credit card affiliate in 2003. On Monday, the Financial Services Commission was scheduled to make prior notification to Lone Star that it would order the fund to dispose of 41.02 percent of its 51.02 percent stake in KEB. After the prior notice of about a week, the regulator will finally order the stake sale through the panel discussion. But FSC officials said the "sale terms" for the stake sale order have yet to be determined, adding that the prior notification does not involve the key issue between "simple" stake sale and "punitive" stake sale. The details will likely be decided at the FSC's coming -- extraordinary or regular -- panel meeting next month. About Korea Exchange Bank Korea Exchange Bank -- http://www.keb.co.kr/-- established in 1967, is one of seven national banks in South Korea with over 300 domestic branches and 28 overseas networks, including Canada, the United States, Panama and Germany, constituting the most extensive global banking network of any Korean bank. KEB Futures -- http://www.kebf.com/-- is a clearing member of KOFEX and is a subsidiary of Korea Exchange Bank, the official F/X settlement bank for Korean Futures Exchange. * * * Korea Exchange Bank continues to carry Moody's Investors Service "C-" Bank Financial Strength Rating. ==================== N E W Z E A L A N D ==================== PIKE RIVER: Shanxi Coal Submits Joint Bid with Solid Energy ----------------------------------------------------------- BusinessDay.co.nz reports that Chinese state-owned Shanxi Coal is understood to be in the running to buy Pike River Coal as part of a joint bid with New Zealand coal company Solid Energy. BusinessDay.co.nz relates that sources said bids closed a week ago, with four players making offers. According to the report, sources said one Indian company earlier interested in making an offer had pulled out, but another Indian company was still understood to be in the running. There has also been interest from an unnamed Australian company, but it remained unclear if it made a final bid, the report relays. BusinessDay.co.nz, citing another industry source, says if Shanxi joined Solid Energy as a partner in Pike River it could provide the financial muscle to reopen the mine and be a large customer, with Solid Energy providing the local expertise. China has a huge appetite for coal, which has been a key driver of its economic growth. There has been industry concern a Chinese or Indian company could come in with a high price and pick up the Pike River assets without the involvement of a local player, the report notes. BusinessDay.co.nz relates that a source said the Pike mine remained a "technical challenge" and a player from overseas might not have the right skills to mine in what was a difficult area. A joint-venture deal might also put Shanxi in a good position to take a stake in Solid Energy, should the Government decide to sell part of the company, the report relates citing an industry source. About Pike River Coal Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is a New Zealand-based coal mining company. The Company, along with its subsidiaries, is primarily engaged in the exploration, evaluation, development and production of coal. It operates a coal mine that lies under the Paparoa Ranges. Pike River Coal Ltd, the company that operates the coal mine where 29 miners died in a series of explosions in November 2010, was placed into receivership in December 2010. New Zealand Oil & Gas, the company's largest shareholder, appointed accountants PricewaterhouseCoopers as receivers. The company owed NZ$80 million to secured creditors BNZ and NZ Oil & Gas. Pike River Coal also owed another estimated NZ$10 million to NZ$15 million to contractors, including some of the men who lost their lives in the disaster. WESTERN PACIFIC: Unsecured Claims Rise to NZ$63.4 Million --------------------------------------------------------- Otago Daily Times reports that losses of Western Pacific Insurance appear to have almost doubled again, with an almost NZ$30 million shortfall in funds available to pay a total NZ$63.4 million in estimated unsecured claims. Western Pacific, which held global insurance policies with a total $10 billion in exposure, collapsed in late April and was placed in liquidation initially owing more than NZ$40 million. Citing liquidators Grant Thornton's first six-monthly report released this week, Otago Daily Times relates that Simon Thorn estimated there were total unsecured claims of NZ$63.4 million -- NZ$61.5 million in insurance claims, NZ$1.1 million owed to trade creditors, $807,000 in unexpired premiums, and almost NZ$11,000 in broker commissions. According to Otago Daily Times, Mr. Thorn estimated about NZ$34 million might be recoverable from Western's reinsurance arrangements, covering the Christchurch quakes of September and February, but the High Court is scheduled this week make a decision on whether proceeds would go to all Western's creditors or the policyholders covered by the reinsurance. "It is not possible at this stage to estimate whether any dividend will be available for creditors," Otago Daily Times quoted Mr. Thorn as saying. Mr. Thorn, as cited by Otago Daily Times, said it was "not likely" that the liquidation could be completed during the next six months. About Western Pacific Western Pacific Insurance is a New Zealand-owned and operated insurance company. It was established in April 2005, and is principally a broker brand that offers a broad range of commercial, domestic and specialty products as well as programmes for affinity groups, underwriting agents and preferred brokers. It has about 7,000 policy holders in New Zealand. David Ruscoe and Simon Thorn of Grant Thornton New Zealand were appointed liquidators of Western Pacific on April 1, 2011, after Western Pacific's directors became concerned about the solvency of their company. ================= S I N G A P O R E ================= TOP SECRET: Court Enters Wind-Up Order -------------------------------------- The High Court of Singapore entered an order on Sept. 30, 2011, to wind up the operations of Top Secret Private Limited. Jack Investment Pte Ltd filed the petition against the company. The company's liquidator is: The Official Receiver 45 Maxwell Road #06-11 Singapore 069118 UPS LOGISTICS: Creditors' Proofs of Debt Due Nov. 28 ---------------------------------------------------- Creditors of UPS Logistics Group 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: Kelvin Thio Terence Ng c/o Ardent Business Advisory Pte Ltd 146 Robinson Road #12-01 Singapore 068909 WOK WOK: Court to Hear Wind-Up Petition Nov. 11 ----------------------------------------------- A petition to wind up the operations of Wok Wok Restaurant Pte Ltd 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 ********* 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 ***