/raid1/www/Hosts/bankrupt/TCRAP_Public/111122.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, November 22, 2011, Vol. 14, No. 231
Headlines
A U S T R A L I A
CENTRO PROPERTIES: 4th-Biggest Shareholder Supports Merger Plan
PRIMEBROKER SECURITIES: ANZ Set to Settle $350 Million Legal Row
RALACOM PTY: Paradise Island Resort Goes Into Liquidation
SMART SERIES 2011-4US: Fitch Rates AUD12.46MM Class E Notes BBsf
C H I N A
CHINA TEL GROUP: Signs Deal with Aerostrong to Provide WBA
TONGJI HEALTHCARE: Incurs US$22,846 Net Loss in Third Quarter
H O N G K O N G
TINLINE LIMITED: Creditors' Proofs of Debt Due Dec. 18
TOPTIME HOLDINGS: Commences Wind-Up Proceedings
TRUE COLOR: Members' Final Meeting Set for Dec. 19
UMP MEDICAL: Yu Kwong Fat Appointed as Liquidator
WESTERN VISION: Zhang Hui Steps Down as Liquidator
I N D I A
AGARWAL AUTO: CRISIL Assigns 'CRISIL B' Rating to INR55MM Loan
AKMG ALLOYS: CRISIL Assigns 'CRISIL B+' Rating to INR48.1MM Loan
A.R. GOLD: CRISIL Places 'CRISIL BB+' Rating on INR87.5MM Loan
BALKRISHNA GINNING: CRISIL Puts CRISIL B Rating on INR9.6MM Loan
BINJUSARIA METAL: CRISIL Puts CRISIL BB- Rating on INR140MM Loan
DEEVYA SHAKTI: CRISIL Upgrades Rating on INR214.2MM Loan to 'BB'
DIAMOND TEXTILE: CRISIL Rates INR1.16-Bil. Term Loan at CRISIL B
DOLPHIN PROMOTOR: CRISIL Places CRISIL D Rating on INR140MM Loan
EXPRESS INFRATECH: CRISIL Puts 'CRISIL B+' Rating on INR80MM Loan
GANGES INT'L: CRISIL Assigns 'CRISIL BB' Rating to INR315MM Loan
HULDIBARI INDUSTRIES: CRISIL Assigns 'B+' Rating to INR2.5MM Loan
INVENTION INDIA: CRISIL Puts 'CRISIL B+' Rating on INR50MM Loan
KERALA CARS: CRISIL Assigns CRISIL BB+ Rating to INR25MM LT Loan
MGF MOTORS: CRISIL Assigns 'CRISIL BB+' Rating to INR30MM Loan
NAVBHARAT INSULATION: CRISIL Rates INR33.5MM Loan at 'CRISIL B+'
POJ HOTELS: CRISIL Cuts Rating on INR75MM Loan to 'CRISIL D'
SAMARTH FABLON: Fitch Assigns Two Loan Facilities Low-B Ratings
SATYAM CASTINGS: CRISIL Assigns CRISIL B+ Rating to INR10MM Loan
SHARP ENGINEERING: Fitch Rates INR97.5 Million Loan at 'BB-'
TIRUPATI AGENCIES: Fitch Rates INR80-Mil. Fund-Based Loan at 'B-'
VENUS POLYMER: CRISIL Rates INR100MM Cash Credit at 'CRISIL B'
J A P A N
JLOC XXXIV: Fitch Lowers Rating on JPY3.38-Bil. Notes to 'Csf'
OLYMPUS CORP: Execs Signed Off Misleading Accounts to Hide Losses
OLYMPUS CORP: Loyal Workers Feel Betrayal Over Accounting Scandal
OLYMPUS CORP: Scandal May be Tied to Japanese Criminal Gangs
TITAN JAPAN: Fitch Junks Rating on Two JPY11-Bil. Note Classes
* JAPAN: Resona Chairman Warns Over Country's Debt 'Danger Zone'
K O R E A
BUSAN BANK: Fitch Affirms Individual Rating at 'C'
S I N G A P O R E
BEXCOM PTE: Creditors Get 100% Recovery on Claims
BUSINESSWORLD INT'L: Cosimo Borrelli Appointed as Liquidator
COMMAND ENERGY: Creditors' Proofs of Debt Due Dec. 16
C.S. GRAPHICS: Court to Hear Wind-Up Petition Nov. 25
NEW PACIFIC: Creditors Get 100% Recovery on Claims
T H A I L A N D
* THAILAND: Floods Hit Japan Firms Hard
X X X X X X X X
* BOND PRICING: For the Week Nov. 14 to Nov. 18, 2011
- - - - -
=================
A U S T R A L I A
=================
CENTRO PROPERTIES: 4th-Biggest Shareholder Supports Merger Plan
---------------------------------------------------------------
Bloomberg News reports that Orbis Group, the fourth-biggest
investor in Centro Retail Trust, will support Centro Properties
Group's sweetened offer made last week, allowing the debt-laden
real-estate manager to consolidate funds and avoid liquidation.
According to Bloomberg, investors in Centro Retail and its
responsible entity Centro Properties will vote on a proposal
today, November 22, to create a new real estate trust that will
combine all the group's funds into one entity that will be mostly
owned by its creditors. The plan will allow Centro Properties to
avert liquidation and erase AUD2.9 billion of debt due on
Dec. 15.
"We will vote yes," Managing Director Simon Marais, whose company
owns about 3% of Centro Retail, told Bloomberg in a telephone
interview. "We were always worried about giving up tangible net
assets. That was unfair. Now we don't have to give that up."
Bloomberg relates that Centro Properties increased the stake on
offer to investors in Centro Retail to 15.9% from 14.5% on
Nov. 18. The group, according to Bloomberg, also raised Centro
Retail's portion of net tangible assets in the new trust to 44.4
cents a share from 40.6 cents under the earlier proposal, and
offered Centro Retail Trust shareholders 1 share in the new
Centro Retail Australia for every 5.29 securities they currently
own, down from 5.8 shares under the earlier plan.
Centro said the senior lenders will own 72.3% of the new trust,
from 73.9% earlier, Bloomberg relates. Orbis had planned to vote
against the earlier proposal, Bloomberg adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 10, 2011, Centro Properties said it entered into an
agreement with its senior lenders to implement its restructure
transaction together with the proposed aggregation of the
Australian assets and interests held by CNP, Centro Retail Trust
and certain Centro managed funds. Centro's merger agreement
involves a debt for equity swap that will result in its lenders,
chiefly hedge funds, taking about 78% equity in the new listed
vehicle, the Australian said.
The TCR-AP, citing The Australian, reported on Aug. 30, 2011,
that Centro Properties warned shareholders when handing down its
full-year results that the debt-bloated company still faces
liquidation if it does not merge with the less indebted Centro
Retail Group.
About Centro Properties
Based in Australia, Centro Properties Group (ASX:CNP)--
http://www.centro.com.au/-- is a retail investment organization
specializing in the ownership, management and development of
retail shopping centres. Centro manages both listed and unlisted
retail property and has an extensive portfolio of shopping
centres across Australia, New Zealand, and the United States.
Centro has funds under management of US$24.9 billions.
PRIMEBROKER SECURITIES: ANZ Set to Settle $350 Million Legal Row
----------------------------------------------------------------
The Sydney Morning Herald reports that ANZ Bank is poised to
settle its $350 million legal fight with Primebroker Securities
Ltd.
After three weeks in court battling the founders and clients of
Primebroker, who allege misleading and deceptive conduct by the
bank, ANZ's senior legal team spent the weekend considering an
offer to settle the matter, according to SMH.
The report said Monday a settlement deal, valued at between
$20 million and $25 million to Primebroker, will be signed within
the next 24 hours.
That deal will provide a return to almost 400 former Primebroker
clients, including Hawthorn Football Club presidential candidate
Geoff Lord and prominent Melbourne lawyer Nick Stretch. It would
also remove an estimated $70 million contingent liability from
the balance sheet of ANZ, which has been required to make a
provision for the case for the past two years.
"The matter is on the verge of being settled, and in another 24
hours or so and the deal should be done and dusted," SMH quotes a
person with knowledge of the discussions between the parties, as
saying.
An ANZ spokesman has confirmed that a deal was on the table, SMH
adds.
As reported in the Troubled Company Reporter-Asia Pacific on
July 31, 2008, the directors of Primebroker Securities Limited,
Chimaera Financial Group's margin lending business, appointed
Laurence Fitzgerald -- laurie.fitzgerald@bdo.com.au -- and
Michael Humphris -- Michael.Humphris@melbourne.bdo.com.au -- of
BDO Kendalls as voluntary administrators. The directors said the
appointment followed the appointment of Paul Kirk --
paul.kirk@au.pwc.com -- and Stephen Longley --
slongley@ppbadvisory.com -- of PricewaterhouseCoopers as
receivers and managers by ANZ Bank on July 4, 2008.
In October 2008, Messrs. Fitzgerald and Humphris were appointed
as the company's liquidators.
RALACOM PTY: Paradise Island Resort Goes Into Liquidation
---------------------------------------------------------
Lucy Ardern at goldcoast.com.au reports that a bitter battle
between tenants, the body corporate committee, and managers has
seen Paradise Island Resort land in the hands of liquidators.
The management rights, managers office, reception area, managers
unit, licensed bar, and restaurant for Paradise Island -- which
is owned by Ralacom Pty Ltd -- has been under external
administration since late May 2010, according to the report.
But receiver Julie Williams --
jwilliams@insolvencysolutions.com.au -- from Insolvency &
Turnaround Solutions, has been unable to find a buyer, despite
extensively marketing the property from December last year, the
report says.
Nigel Markey -- nmarkey@pilotpartners.com.au -- from Pilot
Partners in Brisbane was appointed liquidator of the property by
the Federal Court of Australia on November 11, the report
discloses.
The move, says goldcoast.com.au, was made after the court was
petitioned by the Australian Tax Office, which is believed to be
one of the biggest creditors.
A new expressions of interest campaign has been launched by
Ms. Williams and parties have until December 1 to register, the
report notes.
SMART SERIES 2011-4US: Fitch Rates AUD12.46MM Class E Notes BBsf
----------------------------------------------------------------
Fitch Ratings has assigned SMART Series 2011-4US Trust notes
final ratings. The transaction is an asset-backed securitization
backed by automotive lease receivables originated by Macquarie
Leasing Pty Limited.
-- USD100 mil. Class A-1 notes: 'F1+sf'
-- USD35 mil. Class A-2a notes: 'AAAsf'; Outlook Stable
-- USD123 mil. Class A-2b notes: 'AAAsf'; Outlook Stable
-- USD25 mil. Class A-3a notes: 'AAAsf'; Outlook Stable
-- USD136 mil. Class A-3b notes: 'AAAsf'; Outlook Stable
-- USD30 mil. Class A-4a notes: 'AAAsf'; Outlook Stable
-- USD51 mil. Class A-4b notes: 'AAAsf'; Outlook Stable
-- AUD11.075 mil. Class B notes: 'AAsf'; Outlook Stable
-- AUD15.229 mil. Class C notes: 'Asf'; Outlook Stable
-- AUD13.844 mil. Class D notes: 'BBBsf'; Outlook Stable
-- AUD12.46 mil. Class E notes: 'BBsf'; Outlook Stable
-- AUD8.307 mil. seller notes: not rated
The notes have been issued by Perpetual Trustee Company Limited
as trustee for SMART Series 2011-4US Trust. SMART Series 2011-
4US Trust is a legally distinct trust established pursuant to a
master trust and security trust deed.
At the cut-off date, the Macquarie Leasing's representative
collateral portfolio consisted of 16,760 automotive lease
receivables totalling approximately AUD553.8 million, with an
average size of AUD33,041. The pool comprises passenger and
light commercial vehicle lease receivables from Australian
residents across the country, consisting of amortizing principal
and interest leases with varying balloon amounts payable at
maturity. The weighted average balloon payment for the portfolio
is 26.9% (percentage of leases' original balance). The majority
of leases consist of novated contracts (60.7%), where the lease
is novated to the employer in salary packaging arrangements.
Historical gross loss rates by quarterly vintage on passenger
vehicle and truck leases ranged between 0.6% and 1.5%, and
between 0.5% and 5.0%, respectively.
The final Short-Term 'F1+sf' Rating on the Class A-1 notes and
the final Long-Term 'AAAsf' Rating with Stable Outlook on the
Class A-2a, A-2b, A-3a, A-3b, A-4a and A-4b notes, are based on:
the quality of the collateral; the 11% credit enhancement
provided by the subordinate Class B, C, D and E notes and the
unrated seller notes and excess spread; a liquidity reserve
account sized at 1% of the aggregate invested amount of the notes
at closing; the interest rate swap arrangements the trustee has
entered into with Macquarie Bank Ltd ('A+'/ Stable/'F1'); and
Macquarie Leasing Pty Ltd's lease underwriting and servicing
capabilities.
The final ratings assigned to the other classes of notes are
based on all the strengths supporting the Class A notes,
excluding their credit enhancement levels, but including the
credit enhancement provided by each class of notes' respective
subordinate notes.
=========
C H I N A
=========
CHINA TEL GROUP: Signs Deal with Aerostrong to Provide WBA
----------------------------------------------------------
US-based VelaTel Global Communications, formerly known as China
Tel Group, Inc., entered into a Business Agreement with
Aerostrong Company Limited. Aerostrong is a subsidiary of China
Aerospace Science and Technology Group, a state-owned company in
the People's Republic of China. Aerostrong holds PRC-issued
value added services licenses to provide telecommunication
services via satellite nationwide and internet access service in
18 major cities. Aerostrong will apply for additional licenses
for radio frequency spectrum to provide wireless broadband
access. Under the Business Agreement, VelaTel, through a PRC
operating company subsidiary, will enter into an exclusive
service contract with Aerostrong to deliver WBA and related
telecommunications services to CASC and its affiliates utilizing
Aerostrong' licenses combined with infrastructure equipment
VelaTel will finance. The operating company will also provide
all engineering and network management services, including
engineering VelaTel has already completed for 29 major PRC cities
in connection with a different WBA project. Aerostrong will pay
the operating company service fees to be specified in the service
contract. The operating company will deploy and operate
Aerostrong's 4G network, which will employ TD-LTE technology
using equipment already commercially available and manufactured
by VelaTel's strategic partner ZTE Corporation. VelaTel and
Aerostrong expect to finalize the service contract before year-
end 2011 and for Aerostrong to secure additional licenses for the
4G network by the end of the first quarter 2012. The 4G network
will serve primarily as a private network for employees of CASC
and its affiliated companies, and their respective customers and
suppliers. The parties expect that the first phase of deployment
will include CASC's Beijing headquarters campus and its corporate
users.
CASC is the main contractor for the PRC's space program. Through
its subsidiaries, CASC designs and manufactures spacecraft for
government application, as well as high-end civilian products
including machinery, chemicals, communications equipment,
transportation equipment, computers, medical care products and
environmental protection equipment. CASC has more than 120,000
employees distributed among eight R&D and production complexes
and approximately 20 other subsidiaries and affiliated
enterprises. Its asset value exceeds $20 billion, its annual
revenue $10 billion and its annual profit $1 billion. Aerostrong
specializes in information industry services and systems
integration on behalf of CASC and other customers. Its 2010
revenue was over $23 million. For further information about
CASC, please visit http://www.spacechina.com/
VelaTel's President, Colin Tay stated: "We are very excited about
all our projects. However, there are two important differences
between our latest projects and our other projects. First, the
advances that have been made in commercially available equipment
will allow us to roll out TD-LTE from the outset instead of
upgrading to a dual band LTE network. Second, securing one
customer with 100,000 users compared to 100,000 unique
subscribers creates a different financial dynamic in terms of
faster revenue ramp up, reduced marketing expense, avoiding user
turnover, and delivering customer service. VelaTel's CEO, George
Alvarez, added: "These projects present a new business model for
us in China. These companies, like universities, municipalities,
and other government and quasi-government agencies, have
specialized needs for integrated network services. We can provide
the expertise and the capital. The number of users CASC can
assure us under a long term contract justifies our investment,
and provide different revenue vehicles to ride the broadband
explosion in China."
About China Tel
Based in San Diego, California, and Shenzhen, China, China Tel
Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/--
provides high speed wireless broadband and telecommunications
infrastructure engineering and construction services. Through
its controlled subsidiaries, the Company provides fixed
telephony, conventional long distance, high-speed wireless
broadband and telecommunications infrastructure engineering and
construction services. ChinaTel is presently building, operating
and deploying networks in Asia and South America: a 3.5GHz
wireless broadband system in 29 cities across the People's
Republic of China with and for CECT-Chinacomm Communications Co.,
Ltd., a PRC company that holds a license to build the high speed
wireless broadband system; and a 2.5GHz wireless broadband system
in cities across Peru with and for Perusat, S.A., a Peruvian
company that holds a license to build high speed wireless
broadband systems.
Since the Company's inception until June 30, 2011, it has
incurred accumulated losses of approximately $242.36 million.
The Company expects to continue to incur net losses for the
foreseeable future.
The Company's independent accountants have expressed substantial
doubt about the Company's ability to continue as a going concern
in their audit report, dated April 15, 2011, for the period ended
Dec. 31, 2010. As reported by the TCR on April 21, 2011, Mendoza
Berger & Company, LLP, in Irvine, California, expressed
substantial doubt about the Company's ability to continue as a
going concern, following the 2010 financial results. The
independent auditors noted that the Company has incurred a net
loss of US$56,041,182 for the year ended Dec. 31, 2009,
cumulative losses of US$165,361,145 since inception, a negative
working capital of US$68,760,057, and a stockholders' deficit of
US$63,213,793.
The Company reported a net loss of US$66,623,130 on US$955,311 of
revenue for the year ended Dec. 31, 2010, compared with a net
loss of US$56,065,029 on US$657,876 of revenue during the prior
year.
The Company also reported a net loss of US$17.97 million on
US$488,476 of revenue for the nine months ended Sept. 30, 2011,
compared with a net loss of US$38.22 million on US$729,701 of
revenue for the same period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed US$11.57
million in total assets, US$22.22 million in total liabilities
and a US$10.64 million total stockholders' deficit.
TONGJI HEALTHCARE: Incurs US$22,846 Net Loss in Third Quarter
-----------------------------------------------------------
Tongji Healthcare Group, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q, reporting
a net loss of US$22,846 on US$703,330 of total operating revenue
for the three months ended Sept. 30, 2011, compared with net
income of US$139,514 on US$498,596 of total operating revenue for
the same period during the prior year.
The Company reported a net loss of US$56,232 on US$1.92 million
of total operating revenue for the year ended Dec. 31, 2010,
compared with a net loss of US$324,335 on US$1.87 million of
total operating revenue during the prior year.
The Company also reported a net loss of US$45,730 on US$1.90
million of total operating revenue for the nine months ended
Sept. 30, 2011, compared with a net loss of US$152,768 on US$1.34
million of total operating revenue for the same period a year
ago.
The Company's balance sheet at Sept. 30, 2011, showed
$10.36 million in total assets, US$10.19 million in total
liabilities, and US$165,086 in total stockholders' equity.
As reported by the TCR on April 25, 2011, Kabani & Company, Inc.,
in Los Angeles, California, noted that the Company's significant
operating losses and insufficient capital raise substantial doubt
about its ability to continue as a going concern.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/fmOjc9
About Tongji Healthcare
Based in Nanning, Guangxi, the People's Republic of China, Tongji
Healthcare Group, Inc., was incorporated in the State of Nevada
on December 19, 2006. The Company operates Tongji Hospital,
a general hospital with 105 licensed beds.
================
H O N G K O N G
================
TINLINE LIMITED: Creditors' Proofs of Debt Due Dec. 18
------------------------------------------------------
Creditors of Tinline Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
Dec. 18, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Nov. 14, 2011.
The company's liquidators are:
Natalia Seng Sze Ka Mee
Cynthia Wong Tak Yee
Three Pacific Place, Level 28
1 Queen's Road East
Hong Kong
TOPTIME HOLDINGS: Commences Wind-Up Proceedings
-----------------------------------------------
Members of Toptime Holdings Limited, on Nov. 14, 2011, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Ho Pak Ming
Suite 2202, 2nd Floor
Chinachem Tower
Nos. 34-37 Connaught Road
Central, Hong Kong
TRUE COLOR: Members' Final Meeting Set for Dec. 19
--------------------------------------------------
Members of True Color Stationery (H.K.) Limited will hold their
final general meeting on Dec. 19, 2011, at 11:00 a.m., at
Room 603, Alliance Building, in 130-136 Connaught Road Central,
in Hong Kong.
At the meeting, Chak Chun Keung Thomas, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
UMP MEDICAL: Yu Kwong Fat Appointed as Liquidator
-------------------------------------------------
Yu Kwong Fat, on Nov. 8, 2011, was appointed as liquidator of UMP
Medical Centre (Heng Fa Chuen) Limited.
The liquidator may be reached at:
Yu Kwong Fat
Rooms 1304-05, Easey Commercial Building
253-261 Hennessy Road
Wanchai, Hong Kong
WESTERN VISION: Zhang Hui Steps Down as Liquidator
--------------------------------------------------
Zhang Hui stepped down as liquidator of Western Vision Company
Limited on Nov. 18, 2011.
=========
I N D I A
=========
AGARWAL AUTO: CRISIL Assigns 'CRISIL B' Rating to INR55MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Agarwal Auto Sales.
Facilities Ratings
---------- -------
INR55 Million Cash Credit CRISIL B/Stable (Assigned)
INR2 Million Bank Guarantee CRISIL A4 (Assigned)
The ratings reflect AAS's weak financial risk profile, marked by
a small net worth, high gearing, and weak debt protection
metrics, low bargaining power with principals, and exposure to
intense competition in the automotive dealership market. These
rating weaknesses are partially offset by AAS's diversified
business with established presence in the automotive dealership
segment, and strong relationships with principals, Mahindra and
Mahindra Ltd (Mahindra) and Escorts Ltd.
Outlook: Stable
CRISIL believes that AAS will benefit over the medium term from
its established position in the automotive dealership market and
its long-standing relationships with principals. The outlook may
be revised to 'Positive' in case of improvement in capital
structure and debt protection metrics on account of infusion of
equity or significant improvement in operating margin and cash
accruals. Conversely, the outlook may be revised to 'Negative' if
the firm's financial risk profile deteriorates, most likely
because of more-than-expected working capital requirements, or
pressure on cash accruals.
About Agarwal Auto
Incorporated in 1967 as a partnership firm by the Agarwal family,
AAS currently has three business segments. AAS is an authorized
dealer of the entire range of vehicles for Mahindra, of tractors
for Escorts Ltd, and furniture and consumer durable products for
Godrej & Boyce Manufacturing Company Ltd. The company owns four
showrooms in Mirzapur and Sonbhadra districts of Uttar Pradesh.
AAS reported (on a provisional basis) a profit after tax (PAT) of
INR8 million on net sales of INR860.3 million for 2010-11 (refers
to financial year, April 1 to March 31), as against a PAT of
INR4 million on net sales of INR882.9 million for 2009-10.
AKMG ALLOYS: CRISIL Assigns 'CRISIL B+' Rating to INR48.1MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of AKMG Alloys Pvt Ltd.
Facilities Ratings
---------- -------
INR48.1 Million Term Loan CRISIL B+/Stable (Assigned)
INR50 Million Cash Credit CRISIL B+/Stable (Assigned)
INR1.9 Million Proposed Long- CRISIL B+/Stable (Assigned)
Term Bank Loan Facility
INR20 Million Letter of Credit CRISIL A4 (Assigned)
The ratings reflect AKMG's nascent stage of operations in a
fragmented industry and below-average financial risk profile,
marked by a small net worth, average gearing, and weak debt
protection metrics. These rating weaknesses are partially offset
by AKMG's minimum exposure to project implementation risk.
Outlook: Stable
CRISIL believes that AKMG will benefit from the commencement of
commercial operations of its ingot-manufacturing unit in December
2011. The outlook may be revised to 'Positive' in case of better-
than-expected ramp-up in operations and profitability, resulting
in higher-than-expected cash accruals, along with efficient
working capital management. Conversely, the outlook may be
revised to 'Negative' in case of pressure on the company's
liquidity, resulting from lower-than-expected cash accruals or
larger-than-expected working capital requirements or debt-funded
capital expenditure plan.
About AKMG Alloys
Incorporated in 2010, AKMG would purchase and operate an ingot-
manufacturing unit in Tirupur district (Tamil Nadu), which is
being set up by Shanti Steels India Pvt Ltd. SSIPL is not a
group entity and is being operated by third-party promoters. The
purchase is limited to the manufacturing unit and does not
include takeover of SSIPL. This manufacturing facility will have
the capacity to manufacture 100 tonnes per day of steel ingots
(induction-furnace based). Implementation of this manufacturing
unit commenced in June-July 2010 and is expected to be completed
by November 2011. Commercial production is expected to commence
from December 2011.
A.R. GOLD: CRISIL Places 'CRISIL BB+' Rating on INR87.5MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable' rating to the long-
term bank facilities of A.R. Gold Pvt Ltd, part of the Swarn
Shilp group.
Facilities Ratings
---------- -------
INR87.5 Million Long-Term Loan CRISIL BB+/Stable (Assigned)
INR40 Million Cash Credit CRISIL BB+/Stable (Assigned)
INR72.5 Million Proposed Long- CRISIL BB+/Stable (Assigned)
Term Bank Loan Facility
The rating reflects the benefits that the Swarn Shilp group
derives from its promoters' extensive experience in manufacturing
and trading gold jewellery and its established relationships with
its customers and suppliers. These rating strengths are partially
offset by the Swarn Shilp group's modest financial risk profile,
marked by a high gearing, and exposure to risks related to
product concentration and intense industry competition.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Swarn Shilp Chains & Jewellery Pvt
Ltd, Swarn Shilp, and ARGPL, together referred to as the Swarn
Shilp group. The consolidated approach is because all the
entities are controlled and managed by the same promoter
families; also, the entities are in a similar line of business
and have operational and financial linkages.
Outlook: Stable
CRISIL believes that the Swarn Shilp group will benefit over the
medium term from its established market presence and its
promoters' extensive experience in the jewellery industry. The
outlook may be revised to 'Positive' if the group significantly
increases its revenue and operating margin while maintaining or
improving its capital structure. Conversely, the outlook may be
revised to 'Negative' in case of deterioration in the Swarn Shilp
group's gearing or debt protection metrics.
About the Group
The Swarn Shilp group, established by Mr. Arvind Ranavat in 1989,
manufactures and trades gold jewellery, mainly gold chains. The
group operates through its three entities - SSCJPL, Swarn Shilp,
and ARGPL. While Swarn Shilp is engaged in the manufacturing
process, SSCJPL is engaged in the trading business.
ARGPL manufactures gold hollow chains. Its unit has capacity to
manufacture gold chains of 150 kilograms per month. The group is
currently managed by the Ranavat and Sankala families, which have
more than 30 years of experience in the jewellery manufacturing
business. Swarn Shilp's manufacturing facility in Sewri
(Maharashtra) is spread across an area of around 4000 square feet
(sq ft) and has 25 machines. The unit employs around 100 workers.
ARGPL purchased new premises for its manufacturing unit in 2010-
11 (refers to financial year, April 1 to March 31) with a capital
expenditure of around INR65 million. It currently has a
manufacturing unit in Sewri spread across an area of around
10,500 sq ft.
ARGPL reported a profit after tax (PAT) of INR8.72 million on net
sales of INR589.8 million for 2010-11, as against a PAT of
INR2.72 million on net sales of INR203.0 million for 2009-10.
BALKRISHNA GINNING: CRISIL Puts CRISIL B Rating on INR9.6MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Balkrishna Ginning and Pressing Factory.
Facilities Ratings
---------- -------
INR9.6 Million Rupee Term Loan CRISIL B/Stable (Assigned)
INR80 Million Cash Credit CRISIL B/Stable (Assigned)
INR9.4 Million Proposed Long- CRISIL B/Stable (Assigned)
Term Bank Loan Facility
The rating reflects BGPF's moderate financial risk profile,
marked by a small net worth, leveraged capital structure, and
modest debt protection metrics, and exposure to risks related to
unfavorable changes in government policy. These rating weaknesses
are partially offset by the industry experience of BGPF's
promoter.
Outlook: Stable
CRISIL believes that BGPF will benefit over the medium term from
its promoters' experience in the cottonseed business and limited
term loan repayment obligation. The outlook may be revised to
'Positive' if the firm achieves greater-than-expected revenue
growth, while improving its profitability and capital structure.
Conversely, the outlook may be revised to 'Negative' if any large
debt-funded capital expenditure programme or weak working capital
management lead to material deterioration in BGPF's debt
protection metrics or capital structure.
About Balkrishna Ginning
BGPF was established as a partnership firm in 1999 by Mr. Arvind
Raichura and his family members. The firm is engaged in ginning
and pressing of raw cotton to make cotton bales. BGPF also
processes cotton seeds, which are separated during the ginning
process, and manufactures cotton seed wash oil, cotton seed
linter, and de-oiled cake from them. The firm has a daily
capacity to process 400 bales of cotton.
BGPF reported a profit after tax (PAT) of INR1.19 million on net
sales of INR495 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.9 million on net
sales of INR356 million for 2008-09.
BINJUSARIA METAL: CRISIL Puts CRISIL BB- Rating on INR140MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Binjusaria Metal Box Company Pvt Ltd.
Facilities Ratings
---------- -------
INR140 Million Cash Credit CRISIL BB-/Stable (Assigned)
INR60 Million Letter of Credit CRISIL A4+ (Assigned)
INR30 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect BMBCPL's promoters' and its management's
extensive industry experience in the steel long industry in
Andhra Pradesh (AP). These rating strengths are partially offset
by BMBCPL's below-average financial risk profile, marked by a
moderate gearing and weak debt protection metrics. The rating
also factors in BMBCPL's relatively small scale of operations in
a highly fragmented market and susceptibility of operating
margins to fluctuation in raw material prices.
Outlook: Stable
CRISIL believes BMBCPL will benefit over the medium term from its
promoter's extensive industry experience and absence of any
repayment obligations. The outlook may be revised to 'Positive'
if the company scales up its operations and profitability on a
sustainable basis and improves its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if BMBCPL's
revenues and profitability continue to decline further, or
continued delay in debtor realization leading to weak liquidity,
or if BMBCPL undertakes a large debt-funded capital expenditure
programme, leading to weakening in its capital structure.
About Binjusaria Metal
Based in AP, BMBCPL was incorporated in 1985 by Mr. Anil Kumar
Kedia. The company initially commenced its operations with the
manufacturing of Cold Twisted Bars (CTD) and later backward
integrated to manufacture Mild Steel (MS) Ingots in 1990 with an
induction furnace. In 2004-05 (refers to financial year, April 1
to March 31), the company adopted the thermex technology from
Germany to manufacture thermo-mechanically treated (TMT) bars. At
present, BMBCPL has an installed capacity to manufacture 30,000
tonnes per annum (tpa) of MS Ingots and 72,000 tpa of TMT bars
ranging from 8 millimetres (mm) to 32 mm. The company has a well-
established TMT brand under 'BT Steels', and derives majority of
its revenues from the sale of TMT bars in AP. The company's daily
operations are managed by Mr. Anil Kumar Kedia.
BMBCPL reported a profit after tax (PAT) of INR1.5 million on net
sales of INR379.1 million for 2010-11, as against a PAT of INR1.0
million on net sales of INR603.9 million for 2009-10.
DEEVYA SHAKTI: CRISIL Upgrades Rating on INR214.2MM Loan to 'BB'
----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Deevya
Shakti Paper Mills Pvt Ltd to 'CRISIL BB/Stable' from 'CRISIL
B+/Stable'.
Facilities Ratings
---------- -------
INR210.0 Million Cash Credit CRISIL BB/Stable (Upgraded
from 'CRISIL B+/Stable')
INR214.2 Million LT Loan CRISIL BB/Stable (Upgraded
from 'CRISIL B+/Stable')
The upgrade reflects expected improvement in DSPMPL's business
risk profile following expected increase in its capacity from the
ongoing capital expenditure (capex) programme in the near term
and stabilization of its existing capacities in 2010-11 (refers
to financial year, April 1 to March 31). The ongoing capacity
expansion by 17,000 tonnes will further improve the company's
scale of operations and consequently lead to healthy cash
accruals. DSPMPL stabilized its existing capacity in 2010-11,
which tripled its revenues and resulted in the company posting
strong cash accruals. Its financial risk profile has also
strengthened considerably, with improvement in gearing and debt
protection metrics. CRISIL expects further improvement in
DSPMPL's financial risk profile over the medium term, following
improvement in its accruals, improving capital structure, and
absence of any large debt-funded capex plans.
The ratings reflect DSPMPL's above-average financial risk
profile, marked by moderate net worth and debt protection
metrics, and healthy operating efficiency. These rating strengths
are partially offset by DSPMPL's moderate scale of operations in
the intensely competitive kraft paper industry and susceptibility
of revenues and profitability to industrial cyclicality and
volatility in waste paper prices.
Outlook: Stable
CRISIL believes that DSPMPL will continue to benefit over the
medium term from the healthy operating efficiency at the existing
capacities and ongoing addition of capacities in the near term.
The outlook may be revised to 'Positive' if DSPMPL improves its
capital structure either by infusion of fresh equity by the
promoters or higher-than-expected cash accruals due to optimum
utilisation of its enhanced capacities. Conversely, the outlook
may be revised to 'Negative' if the company's debt increases due
to more-than-expected debt-funded capex plan or larger-than-
expected increase in working capital requirements, leading to
weakening in its financial risk profile.
About Shakti Paper
DSPMPL was incorporated as a private limited company in 2004 by
the Agarwal family (headed by Mr. Mohanlal Agarwal) based in
Hyderabad (Andhra Pradesh [AP]). The company manufactures kraft
paper (also known as paper board), which is used for packaging by
various industries, such as fast-moving consumer goods,
pharmaceuticals, and textile. DSPMPL's manufacturing plant in
Shadnagar (AP) has installed capacity of 48,000 tonnes per annum
(tpa) for paper board. The company manufactures both coated and
un-coated paper board (sheet and roll form) ranging from 200 to
410 grammage per square meter (gsm). The products are sold
through 200 dealers spread across India. DSPMPL also derives
around 15 per cent of its revenues from exports to Sri Lanka,
Bangladesh, Nepal, and South Africa. The company is currently
enhancing its capacity by around 17,000 tpa at an estimated cost
of around INR200 million, to be funded in a debt-equity ratio of
1:1. The enhanced capacities are expected to be commercialised by
April 2012.
For 2010-11, DSPMPL reported a profit after tax of INR82.8
million on net sales of INR1385.3 million, against a net loss of
INR48.5 million on net sales of INR454.3 million for 2009-10.
DIAMOND TEXTILE: CRISIL Rates INR1.16-Bil. Term Loan at CRISIL B
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the rupee
term loan facility of Diamond Textile Mills Pvt Ltd.
Facilities Ratings
---------- -------
INR1.16 Billion Rupee Term Loan CRISIL B/Stable (Assigned)
The rating reflects DTM's exposure to risks related to
implementation of its ongoing green-field project and to off-take
after the completion of the project. The company's financial risk
profile is expected to moderate over the medium term because of
its ongoing, project-related, large debt-funded capital
expenditure (capex). These rating weaknesses are partially offset
by DTM's extensive experience in the textile industry and
expected strengthening of its business risk profile after the
completion of its ongoing backward integration project.
Outlook: Stable
CRISIL believes that DTM will continue to benefit over the medium
term from its promoters' extensive experience in the textile
industry. The outlook may be revised to 'Positive' if DTM
commissions its ongoing project without any time or cost overrun,
or achieves greater than expected capacity utilisation and
revenue upon operationalization of the project. Conversely, the
outlook may be revised to 'Negative' if there are time or cost
overruns in the project, leading to deterioration in financial
risk profile.
About Diamond Textile
DTM was incorporated in 1978 and was acquired by its current
promoters in 1981. The company is located in Ahmedabad (Gujarat)
and is engaged in dying and printing of cotton, polyester and
other blended grey fabrics (sarees, dress material, shirting,
suiting, bed sheets, and lungis) on job-work basis. DTM has an
installed capacity of 60 million meters per annum (mpa) for dying
and printing.
DTM is currently executing a backward integration project, after
the completion of which, it will have a capacity to produce 45,
23,904 kilograms per annum of cotton yarn (installation of 34,272
spindles) and 12,383,930 metres of shirting material
(installation of 96 Air-jet weaving looms). Around 57 per cent of
the cotton yarn produced will be utilized internally for weaving,
while the rest will be sold in the open market. The weaving
capacity will require around 21 per cent of installed capacity of
dyeing and printing operations, while the remaining 79 per cent
will continue to be used for the open market.
DTM's profit after tax (PAT) and net sales are estimated at
INR31 million and INR348 million respectively for 2010-11 (refers
to financial year, April 1 to March 31); the company reported a
PAT of INR28 million on net sales of INR324 million for 2009-10.
DOLPHIN PROMOTOR: CRISIL Places CRISIL D Rating on INR140MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Dolphin Promotor's & Builders.
Facilities Ratings
---------- -------
INR140 Million Term Loan CRISIL D (Assigned)
INR40 Million Proposed Long- CRISIL D (Assigned)
Term Bank Loan Facility
The rating reflects instances of delay by DPB in servicing its
interest; the delays have been caused by the firm's weak
liquidity.
DPB also has a weak financial risk profile, marked by a high
gearing, small net worth, and weak debt protection metrics. These
rating weaknesses are partially offset by DPB's established track
record in the real estate industry.
About Dolphin Promotor
DPB was set up as a partnership firm in 2004. Prior to setting up
the firm, were involved in the same line of activity through
another group concern, Dolphin Associates. DPB undertakes
construction of residential and commercial real estate projects
in Raipur (Chhattisgarh). Currently, the firm is executing a
residential project, Dolphin Plaza. The total plot area for the
same is around 0.175 million square feet. The project is expected
to be completed by March 2012.
DPB reported a profit after tax (PAT) of INR17 million on net
sales of INR38 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR24 million on net
sales of INR53 million for 2009-10.
EXPRESS INFRATECH: CRISIL Puts 'CRISIL B+' Rating on INR80MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Express Infratech Pvt Ltd.
Facilities Ratings
---------- -------
INR80.0 Million Cash Credit CRISIL B+/Stable (Assigned)
INR12.0 Million Standby Letter CRISIL A4 (Assigned)
of Credit
The ratings reflect EIPL's limited track record and small scale
of operations, its limited financial flexibility on account of
its small net worth and large working capital requirements, and
exposure to risks related to unfavorable regulatory changes.
These rating weaknesses are partially offset by EIPL's healthy
financial risk profile marked by low gearing and robust debt
protection metrics.
Outlook: Stable
CRISIL believes that EIPL will continue to benefit from its
established relationships with mine owners and funding support
from its promoters over the medium term. The rating may be
revised to 'Positive' in case EIPL achieves a significant and
sustained increase in revenues from its stone mining and crushing
ventures, while maintaining its profitability margins.
Conversely, the outlook may be revised to 'Negative' in case the
company's profitability declines steeply from the current levels
or if there is significant deterioration in EIPL's financial risk
profile on account of larger-than-expected, debt-funded capital
expenditure programme.
About Express Infratech
Incorporated in 2008-09 (refers to financial year, April 1 to
March 31), EIPL provides mining services to mine owners based in
the iron ore belt of Orissa and stone belt of Jharkhand. The iron
ore mining services provided by the company include drilling,
blasting, excavation of iron ore and transportation of ore to
crusher sites. The mining operations are carried out throughout
the year except during the monsoon months.
EIPL have entered the stone mining and crushing business from the
second half of 2011-12. At present, EIPL has one operational mine
and expects to commence mining operations on five other mines by
April 2013.
EIPL reported a profit after tax (PAT) of INR 0.7 million on net
sales of INR 49.5 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR 0.7 million on net
sales of INR36.1 million for 2009-10.
GANGES INT'L: CRISIL Assigns 'CRISIL BB' Rating to INR315MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of Ganges Internationale Pvt Ltd.
Facilities Ratings
---------- -------
INR315.0 Million Cash Credit CRISIL BB/Stable (Assigned)
INR180 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect the benefits that GIPL derives from its
conservative and prudent management. This rating strength is
partially offset by GIPL's low financial flexibility because of
working-capital-intensive operations.
Outlook: Stable
CRISIL believes that GIPL will maintain its moderate business
risk profile over the medium term, backed by steady revenues and
accruals. The outlook may be revised to 'Positive' if GIPL's
operating margin improves because of revenue diversity or there
is a significant improvement in its market position with more
export orders from Zain Telecom, South Africa, or improved
offtake from its new heavy fabrication unit. Conversely, the
outlook may be revised to 'Negative' in case GIPL undertakes a
significant debt-funded capital expenditure programme, leading to
significant deterioration in its financial risk profile, or in
case its order flow is adversely affected leading to decline in
its topline and cash accruals.
About Ganges Internationale
GIPL was incorporated in 1991 for trading in steel products. In
2004, the company entered into manufacturing and supplying of
towers for telecommunications and of windmills, power
transmission and distribution, and railway electrification. At
its plant in Puducherry, GIPL has a production capacity of 50,000
tonnes per annum (tpa) and galvanising capacity of 54,000 tpa.
The company has recently commissioned its pilot plant of heavy
fabrication at Raipur (Chhattisgarh); it will supply heavy
fabricated steel structures used in power plants to players in
Jharkhand.
GIPL's profit after tax (PAT) is estimated at INR20.8 million on
net sales of INR2.42 billion for 2010-11 (refers to financial
year, April 1 to March 31), against a PAT of INR15.18 million on
net sales of INR2.1 billion for 2009-10.
HULDIBARI INDUSTRIES: CRISIL Assigns 'B+' Rating to INR2.5MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Huldibari Industries and Plantation
Company Ltd.
Facilities Ratings
---------- -------
INR2.5 Million Long-Term Loan CRISIL B+/Stable (Assigned)
INR52.5 Million Cash Credit CRISIL B+/Stable (Assigned)
INR12.5 Million Proposed Long- CRISIL B+/Stable (Assigned)
Term Bank Loan Facility
INR2.5 Million Bank Guarantee CRISIL A4 (Assigned)
The ratings reflect HIPCL's relatively small scale of operations
and working-capital-intensive operations, and weak financial risk
profile marked by a negative net worth because of past
accumulated losses. These rating weaknesses are partially offset
by the benefits that HIPCL derives from its promoters' extensive
experience in the tea industry and the stable income from lease
rentals through its properties in Kolkata (West Bengal).
Outlook: Stable
CRISIL believes that HIPCL will continue to benefit over the
medium term from its promoters' extensive industry experience.
The outlook may be revised to 'Positive' if there is a
substantial improvement in HIPCL's financial risk profile marked
by an improvement in capital structure or better-than-expected
profitability. Conversely, the outlook may be revised to
'Negative' if the company's working capital requirement increases
or if HIPCL undertakes a large debt-funded capital expenditure
programme over the medium term.
About Huldibari Industries
Set up in 1889 as an Association of Persons under the name
Huldibari Tea Association by Mr. C L Bajoria and his family,
HIPCL was incorporated with its current name in 1995. HIPCL,
based in West Bengal, processes black crush, tear, and curl tea.
The company has its own tea estate at Dooars (West Bengal), with
a total tea garden area of 1,250 hectares and planted area of
around 850 hectares. It has total capacity to produce 1.8 million
kilograms of tea per annum.
For 2010-11, the company reported a profit after tax (PAT) of
INR10 million on net sales of INR161 million as against a PAT of
INR7.7 million on net sales of INR147 million in 2009-10.
INVENTION INDIA: CRISIL Puts 'CRISIL B+' Rating on INR50MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Invention India (Exports) Ltd.
Facilities Ratings
---------- -------
INR50 Mil. Foreign Bill Purchase CRISIL B+/Stable (Assigned)
INR5 Million Letter of Credit CRISIL A4 (Assigned)
INR1 Million Bank Guarantee CRISIL A4 (Assigned)
INR42.5 Million Packing Credit CRISIL A4 (Assigned)
The ratings reflect IIL's small scale of operations, its limited
revenue diversity, and susceptibility to risks related to its
volatility in prices and availability of raw materials. The
ratings also reflect IIL's average financial risk profile,
constrained by working-capital-intensive operations. These
weaknesses are partially offset by the promoters' extensive
experience in the textile industry, and established regional
position in the readymade garment segment.
Outlook: Stable
CRISIL believes that IIL will continue to benefit from its
promoters' extensive industry experience in textile industry,
over the medium term. The outlook may be revised to 'Positive' in
case the company significantly improves its scale of operations
and capital structure, along with sustaining its profitability.
Conversely, the outlook may be revised to 'Negative' if IIL
undertakes any larger-than-expected debt-funded capital
expenditure programme, or its profitability declines
significantly, thereby weakening its financial risk profile.
About Invention India
Set up in 1978 by Mr. Harbhajan Singh and Mr. Kulbir Singh, IIL
manufactures readymade garments at its plant in Sonipat, Haryana.
IIL has a manufacturing capacity of 1.8 million pieces per annum.
The company derives majority of its revenues from exports to
Europe.
IIL reported a profit after tax (PAT) of INR2 million on net
sales of INR193 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR0.50 million on net
sales of INR166 million for 2009-10.
KERALA CARS: CRISIL Assigns CRISIL BB+ Rating to INR25MM LT Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to
the bank facilities of Kerala Cars Pvt Ltd.
Facilities Ratings
---------- -------
INR30 Million Cash Credit CRISIL BB+/Stable (Assigned)
INR25 Million Long-Term Loan CRISIL BB+/Stable (Assigned)
INR196.7 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect KCPL's established position in the automobile
dealership market for Ford India Pvt Ltd (Ford) in Kerala. This
rating strength is partially offset by KCPL's below-average
financial risk profile, marked by a highly leveraged capital
structure and the company's significant fund support to associate
entities, and susceptibility to economic slowdown in the
automobile dealership segment.
Outlook: Stable
CRISIL believes that KCPL will continue to benefit over the
medium term from its established position in the automobile
dealership market for Ford in Kerala and its promoters' extensive
industry experience. The outlook may be revised to 'Positive' if
KCPL's volumes and operating margin improve substantially or in
case of any significant improvement in the company's capital
structure and debt protection metrics. Conversely, the outlook
may be revised to 'Negative' if KCPL's revenues dip
significantly, or if the company undertakes any larger-than-
expected debt-funded capital expenditure programme, or extends
considerable support to associate entities leading to
deterioration in its financial risk profile.
About Kerala Cars
Set up in 1999, KCPL is an authorized dealer for Ford. The
company has five showrooms and eight workshops in Kerala. KCPL
operates its showrooms under the brand name, Kairali Ford. KCPL
is part of the MGF group of companies, which was established in
1930 by its promoter, the late Mr. Ved Prakash Gupta, through its
flagship company Motor & General Finance Ltd. Currently, the
group has four other entities, apart from KCPL, in the automobile
dealership sector - MGF Motors Ltd( dealer for Hyundai Motors
India Ltd (Hyundai, rated CRISIL A1+) in Kerala), MGF Automobiles
Ltd (dealer for Hyundai in Delhi), Omega Motors Ltd (dealer for
Volvo in Kerala), and Capital Vehicles Ltd (dealer for Toyota in
Gurgaon). Mr. Siddharth Gupta, the grandson of the late Mr. Ved
Prakash Gupta, is in charge of the automobile dealership
operations of the group. KCPL's day-to-day operations are managed
by its director of operations, Mr. Thomas J Cherukara.
KCPL reported a profit after tax (PAT) of INR40.5 million on net
sales of INR2.96 billion for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR16.1 million on net
sales of INR1.72 billion for 2009-10.
MGF MOTORS: CRISIL Assigns 'CRISIL BB+' Rating to INR30MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to
the bank facilities of MGF Motors Ltd.
Facilities Ratings
---------- -------
INR30 Million Cash Credit CRISIL BB+/Stable (Assigned)
INR345 Million Inventory CRISIL A4+ (Assigned)
Funding Facility
The ratings reflect MML's established position in the automobile
dealership market for Hyundai Motors India Ltd (Hyundai, rated
'CRISIL A1+') in Kerala. This rating strength is partially offset
by MML's below-average financial risk profile, marked by a highly
leveraged capital structure and significant fund support extended
to group entities, and susceptibility to economic slowdown and
intense competition in the automobile dealership segment.
Outlook: Stable
CRISIL believes that MML will continue to benefit over the medium
term from its established position in the automobile dealership
market for Hyundai in Kerala and its promoters' extensive
industry experience. The outlook may be revised to 'Positive' if
MML's volumes and operating margin improve substantially, or in
case of any significant improvement in the company's capital
structure and debt protection metrics. Conversely, the outlook
may be revised to 'Negative' if MML's revenues dip significantly,
or if the company undertakes any larger-than-expected, debt-
funded capital expenditure programme, or extends considerable
support to associate entities leading to deterioration in its
financial risk profile.
About MGF Motors
Set up in 1998, MML is an authorized dealer for Hyundai. The
company has six showrooms and seven workshops in Kerala. MML
operates its showrooms under the brand name, MGF Hyundai. MML is
part of the MGF group of companies, which was established in 1930
by its promoter, the late Mr. Ved Prakash Gupta, through its
flagship company Motor & General Finance Ltd. Currently, the
group has four other entities, apart from MML, in the automobile
dealership sector - Kerala Cars Pvt Ltd (dealer for Ford India
Pvt Ltd in Kerala), MGF Automobiles Ltd (dealer for Hyundai in
Delhi), Omega Motors Ltd (dealer for Volvo in Kerala), and
Capital Vehicles Ltd (dealer for Toyota in Gurgaon). Mr.
Siddharth Gupta, the grandson of the late Mr. Ved Prakash Gupta,
is in charge of the automobile dealership operations of the
group. MML's day-to-day operations are managed by its director of
operations, Mr. Thomas J Cherukara.
MML reported a profit after tax (PAT) of INR21.7 million on net
sales of INR2.20 billion for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR13.4 million on net
sales of INR2.18 billion for 2009-10.
NAVBHARAT INSULATION: CRISIL Rates INR33.5MM Loan at 'CRISIL B+'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Navbharat Insulation & Engg. Co.
Facilities Ratings
---------- -------
INR33.5 Million Cash Credit CRISIL B+/Stable (Assigned)
INR15 Million Letter of Credit CRISIL A4 (Assigned)
INR20 Million Bank Guarantee CRISIL A4 (Assigned)
The ratings reflect NIEC's modest scale of operations, and below-
average financial risk profile marked by a modest net worth, a
high gearing, and inadequate debt protection metrics. These
rating weaknesses are partially offset by the extensive
experience of NIEC's promoters in the insulation industry.
Outlook: Stable
CRISIL believes that NIEC will continue to benefit, over the
medium term, from its promoter's experience in the insulation
industry and its healthy order book. The outlook may be revised
to 'Positive' if NIEC significantly improves its scale of
operations while it maintains its profitability, leading to
higher-than-expected cash accruals. Conversely, the outlook may
be revised to 'Negative' if there is any stretch in NIEC's
working capital management, leading to deterioration in the
firm's financial risk profile.
About Navbharat Insulation
NIEC was set up in the late 1960s by Mr. R L Khanduja. It
undertakes insulation contracts for oil refineries, and
engineering and manufacturing units, including entities such as
Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd,
Bharat Petroleum Corporation Ltd, Bharat Heavy Electricals Ltd,
Raymond Ltd, and Vardhaman Group. The firm's operations are
broadly classified in to industrial insulation (accounts for
about 70 per cent of NIEC's total revenues) and building
insulation. Industrial insulation is for systems that carry or
store liquid, gas, air, or product in which the temperature of
the substance being transferred or stored is impacted by the
temperature of the ambient air. Building insulation is roof
insulation, false ceilings, acoustic (wall) insulation, and
insulation of air-conditioning ducts mainly deployed in textile
mills, hospitals, hotels, and shopping malls.
NIEC reported, on a provisional basis, a profit after tax (PAT)
of INR1.7 million on operating income of about INR131 million for
2010-11 (refers to financial year, April 1 to March 31); the firm
reported a PAT of INR1.2 million on operating income of INR101
million for 2009-10.
POJ HOTELS: CRISIL Cuts Rating on INR75MM Loan to 'CRISIL D'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of POJ
Hotels Pvt Ltd to 'CRISIL D' from 'CRISIL B+/Stable'.
Facilities Ratings
---------- -------
INR75.0 Million Long-Term Loan CRISIL D (Downgraded from
'CRISIL B+/Stable')
INR38.2 Million Proposed Cash CRISIL D (Downgraded from
Credit Limit 'CRISIL B+/Stable')
The rating downgrade reflects instances of delay by POJ in
servicing its debt. The delays have been caused by POJ's weak
liquidity, as a result of lower occupancy rates at its hotel
leading to lower revenues and accruals.
POJ also has a weak financial risk profile marked by a negative
net worth and weak debt protection metrics; moreover, it has a
small scale of operations and is susceptible to intense
competition and to cyclicality in the hotel industry. POJ,
however, benefits from the healthy business prospects for its
recently opened three-star hotel.
About POJ Hotels
Incorporated in 2005 by Mr. Gorla Sundaraiah and Mr. Gorla
Jayaprakash, POJ runs an upscale, full-service, three-star hotel
at Nellore (Andhra Pradesh). The property features 106 rooms, two
presidential suites, two restaurants, a spa and a gymnasium, and
one presidential suite. The hotel is aimed at customers from the
business segment in and around Nellore, such as Krishnapatnam
Port Ltd, and upcoming projects such as the GVK Krishnapatnam
Power Project and International Leather Park, among others. The
hotel, which commenced operations in April 2010, is managed and
operated by POJ's management, and Mr. Balaram Reddy, an
experienced person in the hotel industry.
POJ reported provisional net loss after tax of INR14.7 million on
provisional net sales of INR16.6 million for 2010-11 (refers to
financial year, April 1 to March 31), its first year of
commercial operations.
SAMARTH FABLON: Fitch Assigns Two Loan Facilities Low-B Ratings
---------------------------------------------------------------
Fitch Ratings has assigned Samarth Fablon Pvt. Ltd. a National
Long-Term Rating of 'Fitch BB+(ind)'. The Outlook is Stable.
The National Long-Term Rating is constrained by SFPL's lack of an
operational track record (the company was only established in
2007), and tight liquidity position as reflected in the almost
100% utilization of working capital limits at the end of the
financial year to March 2011 (FY11). The latter is a result of a
significant increase in inventory days to 136 days in FY11 (FY10:
90 days), which exposes the company to price inventory risks in
case of unfavorable price fluctuations in raw materials. SFPL had
cash and cash equivalents of INR18.1m in FY11.
The rating, however, draws comfort from the significant 81%
increase in SFPL's revenue over the last three years to INR905.9m
in FY11, along with comfortable operating and credit profiles,
and a strong customer base. In FY11, EBITDA margins were 12%
(FY10: 12.4%), total adjusted net debt/operating EBITDA was 3x
(4.0x) and operating EBITDA/gross interest expense was 3x (2.7x).
A new advanced technology for manufacturing woven sacks has
enabled the company to maintain high EBITDA margins. Fitch
expects the margins to be maintained at current levels for the
next few years.
The rating also factors in SFPL's eligibility under a subsidy
scheme from West Bengal Industrial Development Corporation Ltd.,
which allows it a cost advantage over its industry peers, leading
to higher than average operating margins.
Positive rating guidelines include an improvement in SFPL's
liquidity position on a sustained basis. Negative rating
guidelines include discontinuation of the subsidy scheme and net
leverage exceeding 5x on a consolidated basis.
In FY11, SFPL's total adjusted debt was INR344.3 million (FY10:
INR448.7 million) and Free cash flow (FCF) was positive at
INR54.1 million (FY10: negative INR85.3 million). Fitch expects
FCF to turn negative in FY12 mainly due to the company's higher
working capital requirements and planned capex.
SFPL is a Kolkata-based woven sacks manufacturing company, mainly
used in the cement, chemical and fertiliser industries. It has
an installed capacity of 24,000 metric ton per annum at Jhalda
(West Bengal).
Fitch has also assigned ratings to SFPL's bank facilities as
follows:
-- INR176 million term loans: 'Fitch BB+(ind)';
-- INR100 million fund based limits: 'Fitch BB+(ind)'; and
-- INR40 million non-fund based limits: 'Fitch A4+(ind)'.
SATYAM CASTINGS: CRISIL Assigns CRISIL B+ Rating to INR10MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Satyam Castings Pvt Ltd.
Facilities Ratings
---------- -------
INR60 Million Cash Credit CRISIL B+/Stable (Assigned)
INR10 Million Proposed CRISIL B+/Stable (Assigned)
Term Loan
The rating reflects SCPL's below-average financial risk profile,
marked by a small net worth and weak debt protection metrics,
small scale of operations in the intensely competitive mild steel
(MS) ingots industry, and susceptibility to economic downturns in
the end-user industry and to volatility in steel prices. These
rating weaknesses are partially offset by the benefits that SCPL
derives from its promoters' extensive experience in the steel
industry and the present favorable demand scenario for steel long
products.
Outlook: Stable
CRISIL believes that SCPL will benefit over the medium term from
its promoters' extensive experience in the steel industry. The
outlook may be revised to 'Positive' in case the company
significantly scales up its operations and improves its
profitability, resulting in better-than-expected cash accruals
and improvement in its debt protection metrics. Conversely, the
outlook may be revised to 'Negative' in case SCPL's financial
risk profile deteriorates further because of large, incremental
working capital requirements or larger-than-expected, debt-funded
capital expenditure plan.
About Satyam Castings
Incorporated in 2000 and situated in Cuttack (Orissa), SCPL
manufactures MS ingots. SCPL has two induction furnace units with
total ingot manufacturing capacity of around 30,000 tonnes per
annum (tpa). SCPL was acquired by its present promoters, Mr. Aman
Kansal and Mr. Arihant Jain, from the Modi family during October
2010. Currently, SCPL operates only one ingots manufacturing unit
of around 15,000 tpa capacity because of lack of high load power
connection.
SCPL reported a loss of INR0.12 million on net sales of INR163.8
million for 2010-11, against a PAT of INR0.56 million on net
sales of INR187.8 million for 2009-10.
SHARP ENGINEERING: Fitch Rates INR97.5 Million Loan at 'BB-'
------------------------------------------------------------
Fitch Ratings has assigned India's Sharp Engineering Services a
National Long-Term rating of 'Fitch BB- (ind)'. The Outlook is
Stable.
The ratings reflect SES's comfortable credit and liquidity
position in the financial year ended 31 March 2011 (FY11). This
is evidenced in its interest coverage (operating EBITDA/net fixed
charges) of 8.3x (FY10: 6.5x) and financial leverage (total
adjusted net debt/operating EBITDAR) of 1.8x (1.4x), and a four-
year track record of positive cash flow from operations.
The ratings benefit from the company's strong relationship with
its customers, as reflected in its strong sales volume growth of
53% yoy to INR141.9 million in FY11. SES caters to large public
sector units like Bharat Heavy Electricals Limited (BHEL, 'Fitch
AAA(ind)'/Stable/'Fitch A1+(ind)') and Mazagaon Dock Limited, as
well as to corporates such as Godrej & Boyce Manufacturing
Limited, Larsen & Toubro, and Walchandnagar Industries.
Fitch notes that SES has a capacity to execute machining and
fabrication orders to the tune of 60Tonnes and below. The
company's state-of-the-art technology keeps competition fairly
low, thus allowing it to charge high margins of around 48% in
FY11. SES's 60% of revenue comes from providing machining
services.
The ratings are, however, constrained by SES being a sole
proprietorship firm, its small size of operations and order book
concentration. BHEL accounted for 60% of SES's order book of
INR176.6 million (1.24x FY11 revenues) as at October 2011.
Fitch expects that margins may come under pressure once the
competition in the 60Tn and below category intensifies. Margin
deterioration leading to total adjusted debt/operating EBITDA
exceeding 2.25x would be a negative rating guideline.
Conversely, total adjusted debt/operating EBITDA of below 1.0x or
the conversion of the firm to a private limited company would
have a positive impact on the ratings.
SES was established by Mr. Sunil S Kulkarni in 1995 and commenced
its business operation in 1997. The company is mainly into heavy
metal fabrication and high accuracy heavy machining activities.
During H1FY12, its revenue was INR80.9 million, operating EBITDA
was INR37.2 million and operating EBITDA/gross interest was 6.0x,
while total debt/operating EBITDA was 1.3x.
Fitch has also assigned ratings to SES's facilities as follows:
-- INR97.5 million long-term loans: assigned 'Fitch BB- (ind)'
TIRUPATI AGENCIES: Fitch Rates INR80-Mil. Fund-Based Loan at 'B-'
-----------------------------------------------------------------
Fitch Ratings has assigned India-based Tirupati Agencies Pvt.
Ltd. a National Long-Term rating of 'Fitch B-(ind)'. The Outlook
is Stable.
The ratings reflect Tirupati's small scale of operation with
only revenues of INR317 million for FY11, as well as its weak and
deteriorating credit profile, with low interest coverage of 1.4x
in the financial year ended March 2011 (FY11) compared with 1.8x
in FY10.
The ratings also reflect customer concentration as evidenced by
the adverse impact on Tirupati of the termination of agency
contract with Japan's NSK in FY10 for the sale of ball and roller
bearings, which saw its revenue halved to INR317m in FY11 from
INR658m in FY10. NSK was the major business driver for the
company, accounting for over 50% of total revenue in FY10.
Fitch views liquidity -- as measured by interest coverage -- as
the primary credit consideration for trading companies such as
Tirupati, as it reflects the ability to service the interest
commitments on working capital borrowings, which is the main
source of funding for trading companies in meeting working
capital requirements. Fitch expects liquidity for Tirupati to be
under pressure in the short term on account of its termination of
business relationship with NSK. Hence, the ratings may be
upgraded only if interest coverage exceeds 1.4x as a result of
improvement in its EBITDA margins or better deployment of its
borrowed funds
Tirupati was incorporated in 1981 and is engaged in the trading
of local ball and roller bearings in the aftermarket. In FY11, it
reported an EBITDA margin of 4.4% (FY10: 2.7%).
Fitch has also assigned ratings to Tirupati's bank loans, as
follows:
-- INR80 million fund-based limits: 'Fitch B-(ind)'
-- INR6 million non-fund based limits: 'Fitch A4(ind)'
VENUS POLYMER: CRISIL Rates INR100MM Cash Credit at 'CRISIL B'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Venus Polymer Industries.
Facilities Ratings
---------- -------
INR100 Million Cash Credit CRISIL B/Stable (Assigned)
INR100 Million Letter of Credit CRISIL A4 (Assigned)
The ratings reflect the firm's weak financial risk profile and
small scale of operations, along with low bargaining power. These
rating weaknesses are partially offset by the extensive
experience of the promoters.
Outlook: Stable
CRISIL believes that VPI will continue to benefit from the
promoters' extensive experience in the industry. The outlook may
be revised to 'Positive' if the scale of operations increases
significantly along with improvement in the financial risk
profile on account of increase in cash accruals, or better
capital structure. Conversely, the outlook may be revised to
'Negative' if the financial risk profile deteriorates due to
substantial increase in the working capital requirements, or
lower profitability, leading to lower cash accruals.
About Venus Polymer
VPI was set up in 1996 by Mr. Suman Chadha and Mr. Rohit Chadha.
The company is based in Delhi and trades in various types of
polymers, which include high-density polyethylene, low-density
polyethylene, plastic granules, and poly bags. The promoters of
the company have more than 15 years of experience in the polymer
trading industry. The traded products are used for packaging of
food products such as biscuits and salted snacks. The company
also dyes and laminates the plastic for production of plastic
pouches and it formed a small share of sales in 2010-11 (refers
to financial year, April 1 to March 31).
VPI reported a profit after tax (PAT) of INR3.15 million on net
sales of INR951.73 million (On provisional basis) for 2010-11
(refers to financial year, April 1 to March 31), as against a PAT
of INR2.54 million on net sales of INR643.85 million for 2009-10.
=========
J A P A N
=========
JLOC XXXIV: Fitch Lowers Rating on JPY3.38-Bil. Notes to 'Csf'
--------------------------------------------------------------
Fitch Ratings has downgraded JLOC XXXIV's class D trust
beneficiary interests (TBIs), due October 2013, and affirmed the
rest. The transaction is a Japanese multi-borrower type CMBS
securitisation. The rating actions are as follows:
-- JPY1.21bn* Class B TBIs affirmed at 'Asf'; Outlook Stable
-- JPY3.6bn* Class C TBIs affirmed at 'Bsf'; Outlook Stable
-- JPY3.38bn* Class D TBIs downgraded to 'Csf' from 'CCCsf';
Recovery Rating revised to 'RR5' from 'RR6'
*as of Nov. 15, 2011
The downgrade of the class D TBIs reflects Fitch's view that
principal loss on the TBIs is inevitable as the final phase of
workout activity for the remaining defaulted loan approaches.
Taking into account the property sales activity to date, Fitch
believes that the sales proceeds of two remaining properties are
unlikely to be sufficient to repay the class D TBIs in full.
The affirmation of the class B and C TBIs reflects Fitch's view
that two remaining properties will be sold well before the legal
final maturity date and that the total sales proceeds will be
sufficient to repay these two classes of TBIs in full. In
addition, the sale of either of the two properties is likely to
result in the full repayment of the class B TBIs. The class A
TBIs were redeemed in full in October 2011.
This transaction was originally a securitization of two Tokutei
Mokuteki Kaisha specified bonds and one non-recourse loan
(underlying loan), backed by 61 properties and two loan assets.
The transaction is currently secured by one underlying loan
backed by two properties.
OLYMPUS CORP: Execs Signed Off Misleading Accounts to Hide Losses
-----------------------------------------------------------------
Katie Linsell and Mariko Yasu at Bloomberg News report that
Olympus Corp. executives, including the current head of investor
relations, signed off on misleading accounts, restated earnings,
and delayed regulatory filings to help conceal US$687 million in
fake costs used to hide losses.
Documents filed at Companies House in Cardiff, Wales, reveal gaps
in disclosure rules that enabled Olympus to mask the cost of the
2008 takeover of London-listed Gyrus Group Plc for more than
three years, according to Bloomberg.
Bruce E. Aronson -- aronson@creighton.edu -- a former partner at
Hughes Hubbard & Reed LLP in New York, said that like Enron
Corp.'s use of off-balance sheet entities to hide losses, a
simple idea underpinned Olympus's complex deception, Bloomberg
relates.
"The structures may seem sophisticated, but one feature of every
scheme is that they pretend a security is still worth full book
value," Bloomberg quotes Mr. Aronson, who is studying comparative
corporate governance in Tokyo, as saying. The schemes aren't "a
way of hiding losses in the long term." They're just "putting
off the day of reckoning," he said.
According to Bloomberg, Olympus on Nov. 8 admitted inflated
advisory fees paid in the $2.1 billion acquisition of Gyrus were
used to conceal soured investments dating back decades. In a
practice known as "tobashi" -- loosely translated as "to make fly
away" -- the company used offshore entities to park assets in the
hope that a market recovery would erase losses before they had to
be accounted for, Bloomberg notes.
A week after Olympus paid $620 million in March 2010 to buy back
preference shares given to its advisers as fees, former Chairman
Tsuyoshi Kikukawa and two senior aides, who were all serving as
Gyrus directors, filed financial statements saying it wasn't
"meaningful to estimate a fair value" for the securities,
Bloomberg recalls. Gyrus instead booked them at $177 million,
according to the documents obtained by Bloomberg.
The payment to the advisers, Axam Investments Ltd., is part of
criminal probes in the U.S., U.K. and Japan, reports Bloomberg.
Securities Investment Scandal
The Troubled Company Reporter-Asia Pacific reported on Nov. 9,
2011, that Block & Leviton LLP, a Boston-based law firm
representing investors seeking to recover money lost due to
investment fraud, said it is investigating possible securities
fraud claims involving Olympus Corp.
On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008. At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition. The fees were approximately one-third of the $2.0
billion acquisition price, which is almost 30 times higher than
normal.
On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990. Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."
The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40). The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72. Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.
Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed. In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.
About Olympus Corp.
Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products. As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.
OLYMPUS CORP: Loyal Workers Feel Betrayal Over Accounting Scandal
-----------------------------------------------------------------
Reuters reports that employees at Japan's Olympus Corp. are
feeling shock, anger and betrayal as they watch the public
humiliation of a company to which many have devoted their working
lives.
The news agency states that the 92-year-old camera and medical
equipment maker, engulfed by a huge accounting scandal, is
typical of the big Japanese firms that for decades offered
life-long jobs in return for loyalty and hard work. That system
has frayed in recent years, but its legacy is strong, especially
among long-time workers.
So when Olympus finally admitted this month, after weeks of flat
denials, that it had hidden investment losses for decades, the
sense of betrayal among its workforce was felt personally and
very deeply, Reuters relates. It moved some to tears.
"I cried in front of my family when I watched that news
conference," one male employee wrote on Facebook, using the
social-networking site to vent his feelings after television news
coverage of the president's revelation of the scandal, Reuters
reports.
Reuters relates that a co-worker posted a message to console him,
appealing to a sense of loyalty for customers rather than the
company, saying they simply had to work hard to regain their
trust. But the co-worker was also enraged.
"I know it's deep in the night and everyone has fallen asleep.
But I just want to scream out loud 'idiots!!'" he wrote,
according to Reuters.
Out of the wounded pride, a new Web site has sprung up,
encouraging Olympus employees to call for a clean-up at the
company they say they love, says Reuters.
"Our love is a matter of our DNA. It is like someone who grew up
in one place caring for his old home," 70-year-old former
director Koji Miyata told Reuters. Miyata started the Web site,
called Olympus Grassroots.
Has Enough Cash to Keep Going Amid Probe
Bloomberg News reports that Olympus Corp. President Shuichi
Takayama told employees last week the company has enough cash on
hand to keep it in business amid a probe of schemes to hide
investment losses.
"Continue focusing on your job and responsibilities. Our treasury
section will take care of financing issues," Mr. Takayama wrote
in a posting on the company's internal Webs site, a copy of which
was given to Bloomberg News. In a posting last week, Mr.
Takayama said hospitals are asking for details of the scandal
before they commit to orders, with one hospital canceling its
purchase.
Bloomberg says the world's biggest endoscope maker, under
investigation over accounting irregularities by Japanese, U.K.
and U.S. authorities, met officials from financial institutions
in Tokyo on Thursday to ask for their support. Olympus gained
"understanding" from several dozens of lenders at the meeting,
Mr. Takayama wrote.
Bloomberg, citing the company's June 29 financial statement,
discloses that Japan's three biggest banks had a combined
JPY235.2 billion (US$3.1 billion) of long-term loans outstanding
to Olympus as of March 31. Olympus's long-term borrowings have
swelled to JPY527 billion in the past five years, when former
Chairman Tsuyoshi Kikukawa made acquisitions including the
$2.1 billion takeover of Gyrus Group Plc.
Securities Investment Scandal
The Troubled Company Reporter-Asia Pacific reported on Nov. 9,
2011, that Block & Leviton LLP, a Boston-based law firm
representing investors seeking to recover money lost due to
investment fraud, said it is investigating possible securities
fraud claims involving Olympus Corp.
On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008. At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition. The fees were approximately one-third of the $2.0
billion acquisition price, which is almost 30 times higher than
normal.
On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990. Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."
The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40). The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72. Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.
Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed. In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.
About Olympus Corp.
Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products. As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.
OLYMPUS CORP: Scandal May be Tied to Japanese Criminal Gangs
------------------------------------------------------------
ThirdAge Media reports that Olympus Corp. is facing further
scrutiny by police and government officials after revelations
that the concealment of huge financials losses at the firm may
have also involved Japanese criminal gangs.
The report says officials are working on leads that will
determine whether Olympus paid huge sums of money to crime
syndicates for their help in obscuring the losses.
According to ThirdAge Media, a team of investigators from Tokyo's
organized crime division has joined the investigation, which has
so far been conducted by the Tokyo prosecutor's office and
Japan's financial regulation authority, the Securities and
Exchange Surveillance Commission (SESC).
The report relates that the investigation revolves around an
internal memo, released to the media and published by the
New York Times, according to which the company paid some
JPY481 billion (US$6.25 billion) in suspicious investment and
advisory fees between 2000 and 2009. Only JPY105 billion
(US$1.36 billion) were, however, recorded on the company's books.
Should the police prove that Olympus had indeed collaborated with
Japanese criminal gangs, the company faces the real possibility
of being delisted from the Tokyo Stock Exchange, the report
notes.
Securities Investment Scandal
The Troubled Company Reporter-Asia Pacific reported on Nov. 9,
2011, that Block & Leviton LLP, a Boston-based law firm
representing investors seeking to recover money lost due to
investment fraud, said it is investigating possible securities
fraud claims involving Olympus Corp.
On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008. At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition. The fees were approximately one-third of the $2.0
billion acquisition price, which is almost 30 times higher than
normal.
On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990. Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."
The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40). The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72. Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.
Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed. In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.
About Olympus Corp.
Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products. As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.
TITAN JAPAN: Fitch Junks Rating on Two JPY11-Bil. Note Classes
--------------------------------------------------------------
Fitch Ratings has downgraded three classes of Titan Japan, Series
1 GK notes, due November 2012, and affirmed one other class. The
transaction is a Japanese multi-borrower type CMBS
securitisation.
-- JPY39.04bn* Class A notes downgraded to 'BBsf' from 'BBBf';
Outlook Negative
-- JPY12.1bn* Class B notes downgraded to 'CCCsf' from 'Bsf';
assigned a Recovery Rating of 'RR3'
-- JPY11.8bn* Class C notes downgraded to 'CCsf' from 'CCCsf';
Recovery Rating revised to 'RR6' from 'RR5'
-- JPY11.7bn* Class D notes affirmed at 'CCsf'; Recovery Rating
of 'RR6'
*as of Nov. 16, 2011
The downgrade of the class A to C notes reflects increased
uncertainty over potential sale prices of the remaining 18
collateral properties ultimately backing this CMBS, the majority
of which are retail properties mostly located in regional cities
and generally considered not as liquid as other types of
properties.
Since Fitch's previous rating action in November 2010, 16 out of
the then remaining 34 properties have been sold, which has
significantly reduced the outstanding balance of the class A
notes due to sequential payment. However, a substantial number
of the remaining properties still need to be sold to fully repay
the class A notes alone. Fitch believes that, given the short
remaining time to legal final maturity, the remaining properties
may not be sold at favorable prices, thus adversely affecting the
ultimate recovery of the underlying loans and, in turn, the full
redemption of the class A to D notes.
At closing, the notes were backed by six loans ultimately secured
by 43 real estate properties in Japan. To date, two loans have
been fully repaid, bringing the total number of loans backing the
transaction to four, which are currently secured by a total of 18
properties.
* JAPAN: Resona Chairman Warns Over Country's Debt 'Danger Zone'
----------------------------------------------------------------
The Wall Street Journal report that Resona Holdings Chairman Eiji
Hosoya warned that Japan could face similar problems to Greece or
Italy given the country's huge debt burden, and he urged the
government to pursue financial discipline to avoid a potential
crisis.
"We should think of Italy's current problems as a lesson," the
Journal quotes Mr. Hosoya as saying in a recent interview. He
added that a scenario similar to Europe's crisis can't be ruled
out for Japan.
The Journal relates that Mr. Hosoya said a Japanese debt crisis
won't come anytime soon, because about 90% of the country's
government bonds are held by domestic investors, which helps to
limit yield increases.
But Mr. Hosoya said the country would "fall into the danger zone"
if the percentage of Japanese government bonds held domestically
falls to less than 80%, the Journal notes. He said it would take
around four to five years to reach that stage if things continue
as they are.
According to the Journal, Mr. Hosoya, who made his name in
Japanese corporate circles by helping with the privatization of
the sprawling national rail network in the 1980's, said he hopes
the government will make bold moves toward fiscal discipline, as
well as deregulation and lowering the corporate-tax rate.
Mr. Hosoya, as cited by the Journal, doesn't think his bank,
which has no exposure to European debt, will be directly affected
by the current crisis.
But because Resona has a strong retail-banking network, Mr.
Hosoya said a global economic slowdown or further deterioration
in financial-market conditions could cause retail customers to
become more conservative, potentially hitting demand for
investment trusts and other financial products, according to the
news agency.
Mr. Hosoya also expressed concern that the recent trend of
European financial institutions pulling their dollar funding out
of Asia could weigh on the region's economy, including Japan's,
the Journal adds.
=========
K O R E A
=========
BUSAN BANK: Fitch Affirms Individual Rating at 'C'
--------------------------------------------------
Fitch Ratings has revised Korea-based Busan Bank's Outlook to
Stable from Positive. Its ratings have been affirmed at Long-
Term Foreign-Currency Issuer Default Rating (IDR) 'BBB+' and
Short-Term Foreign-Currency IDR 'F2'.
The Outlook change reflects BSB's ambitious loan growth plans
amid the global economic slowdown and concentration risk on
small- and medium-sized enterprise (SME) manufacturers. Fitch
notes that parent BS Financial Holding's (BSFH) organic growth
plan to almost double its total assets by 2015 implies there is a
risk that BSB may grow its loans well beyond the industry's
average, potentially rendering the bank vulnerable to asset
quality deterioration and to liquidity/funding pressure. Fitch
notes that Korea's banking system has a history of strong loan
growth followed by deterioration in asset quality, with the most
recent global financial crisis being the latest example. In the
18 months to H111, BSB's total loans increased by 19.3%
(industry: 3.5%), partly due to the conducive economic
environment in Busan and surrounding areas.
However, Fitch notes that BSB is one of the most resilient banks
in Korea, with a track record of sound operating performance in
challenging environments. This is due to its solid franchise in
the port city of Busan and the surrounding industrial zones in
which nearly all of its activity is based. This, together with
strong profitability, adequate loan quality and sound
capitalisation, underpins BSB's Long-Term IDR and Viability
Rating. Like other Korean banks, the ratings are somewhat
constrained by a weak liquidity/funding profile by international
standards.
Interest income is strong with a regulatory net interest margin
(NIM) of 3.1% in end-H111 versus the industry average of 2.4%.
NIM was maintained above 3% level even during the global credit
crisis, due to its strong franchise and less competition in the
region than in Seoul. Like other regional banks in Korea, the
bank has fewer interest rate-sensitive loans and deposits; making
its NIM much less sensitive to interest rate changes than
nationwide banks.
The overall loan book has performed well with a regulatory non-
performing loan (NPL) ratio of 1.1% and an NPL coverage ratio
(inclusive of loan loss reserve booked under retained earnings)
of 134% at end-H111. Its precautionary-and-below loan (PBL)
ratio has gradually improved to 3.1% (industry average: 3.9%)
from a peak of 4% at end-Q109. BSB weathered the global credit
crisis better than other Korean banks due to its small exposure
to problematic property developers.
The loan book is concentrated on SMEs (69%), of which 49% and 17%
were to the manufacturing and wholesale/transportation sectors,
respectively. The concentration within manufacturing is somewhat
mitigated by reasonable diversification among various key
industries (such as shipbuilding, auto, steel, and petro-
chemical).
Its loan-to-customer deposit ratio stood at 112.3% at end-H111
and is likely to deteriorate if the bank's loan growth plan
materializes. The Tier 1 capital adequacy ratio (CAR) stood at
11% and the total CAR at 14.9% under the Basel II standardized
approach for credit risk. Fitch expects BSB's strong
capitalization and profitability to provide a solid buffer
against credit costs under normal conditions. Nevertheless,
capitalization may come under some pressure from ambitious credit
growth.
BSB's Support Rating and Support Rating Floor reflect Fitch's
continued belief of a high propensity for support, if required,
from the South Korean government ('A+'/Stable). BSB's systemic
importance is underlined by its role as a key bank to
manufacturing exporters in various industries and in the fifth-
largest port in the world.
Positive rating action may be considered if BSB demonstrates
disciplined loan growth and significant improvement in its
liquidity/funding profile. Downside risk is limited at the
current rating level given its strong top-line profitability and
capitalization. However, negative rating action may result if
excessive loan growth leads to severe deterioration in asset
quality and capitalization or liquidity/funding pressures.
The rating actions on BSB are as follows:
-- Long-Term Foreign-Currency IDR affirmed at 'BBB+'; Outlook
revised to Stable
-- Short-Term Foreign-Currency IDR affirmed at 'F2'
-- Viability Rating affirmed at 'bbb+'
-- Individual Rating affirmed at 'C'
-- Support Rating affirmed at '2'
-- Support Rating Floor affirmed at 'BBB'
-- Subordinated debt (lower tier II) affirmed at 'BBB'
=================
S I N G A P O R E
=================
BEXCOM PTE: Creditors Get 100% Recovery on Claims
-------------------------------------------------
Bexcom Pte Ltd will declare the first and final dividend on
Nov. 28, 2011.
The company will pay 100% to the received claims.
BUSINESSWORLD INT'L: Cosimo Borrelli Appointed as Liquidator
------------------------------------------------------------
Cosimo Borrelli on June 4, 2011, was appointed as liquidator of
Businessworld International Limited.
The company's liquidator is Cosimo Borrelli.
COMMAND ENERGY: Creditors' Proofs of Debt Due Dec. 16
-----------------------------------------------------
Creditors of Command Energy Services Asia Pte Ltd, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Dec. 16, 2011, to be included in the company's
dividend distribution.
The company's liquidator is:
Andrew Grimmett
6 Shenton Way #32-00
DBS Building Tower Two
Singapore 068809
C.S. GRAPHICS: Court to Hear Wind-Up Petition Nov. 25
-----------------------------------------------------
A petition to wind up the operations of C.S. Graphics Pte Ltd.
will be heard before the High Court of Singapore on Nov. 25,
2011, at 10:00 a.m.
HSBC Institutional Trust Services (Singapore) Limited filed the
petition against the company on Nov. 2, 2011.
The Petitioner's solicitors are:
JLC Advisors LLP
22 Malacca Street
#07-03 Royal Brothers Building
Singapore 048980
NEW PACIFIC: Creditors Get 100% Recovery on Claims
-------------------------------------------------
New Pacific Shipping Agencies Pte Ltd declared the first and
final dividend on Nov. 21, 2011.
The company paid 100% to the received claims.
The company's liquidators are:
Chee Yoh Chuang
Abuthahir Abdul Gafoor
Stone Forest Corporate Advisory Pte Ltd
8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
===============
T H A I L A N D
===============
* THAILAND: Floods Hit Japan Firms Hard
---------------------------------------
AFP reports that Thailand's worst floods in decades may gradually
be subsiding but ripples will be felt by companies and consumers
for months to come, analysts said, underlining the fragility of
the global supply chain.
Severe flooding since October, which has left hundreds of people
dead, has also hurt a wide range of industries in the production
hub, particularly the automotive and computer hard-disk drive
(HDD) sectors, the news agency relates.
According to AFP, the consequences have been global, hitting
companies such as personal computer maker Dell, HDD makers
Toshiba and Western Digital, and auto giants Toyota and Ford.
As with supply chain woes after Japan's March earthquake,
analysts said the Thai disaster raises questions as to how well
companies understand their supply networks for essential parts,
and whether risks could be better managed, reports AFP.
However, "companies are limited in what they can do because
possessing extra inventory pressures corporate earnings and can
heighten risk," Masaki Nakamura, analyst at MM Research Institute
in Tokyo, told AFP.
In particular, the "just-in-time" delivery system pioneered in
Japan and often used in the technology and car sectors to deliver
components and raw materials only when needed is vulnerable to
such shocks, the report notes.
Thai factories supply about 40% of the world HDD market and while
analysts do not see much of an impact on PC sales in the
Christmas holiday shopping season, conditions will remain tight
into 2012.
According to the news agency, the flooding has made a bad year
worse for Japanese firms that were already fighting to restore
output after the March earthquake and tsunami, and as they
grapple with a profit-eroding strong yen.
By late October, more than 400 Japanese companies suspended
operations or lowered output due to the Thai floods that claimed
more than 560 lives and damaged millions of homes and
livelihoods, the AFP states.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Nov. 14 to Nov. 18, 2011
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
ADVANCE ENERGY 9.50 01/04/2015 AUD 1.07
AINSWORTH GAME 8.00 12/31/2011 AUD 1.31
AMITY OIL LTD 10.00 10/31/2013 AUD 2.00
AUSTRALIAN COMM 3.00 07/29/2049 AUD 5.00
BECTON PROP GR 9.50 06/30/2012 AUD 0.22
DIVERSA LTD 11.00 09/30/2014 AUD 0.03
EXPORT FIN & INS 0.50 12/16/2019 NZD 71.88
EXPORT FIN & INS 0.50 06/15/2020 AUD 69.12
EXPORT FIN & INS 0.50 06/15/2020 NZD 69.98
FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.40
IMF AUSTRALIA 10.25 12/31/2014 AUD 1.72
NEW S WALES TREA 0.50 09/14/2022 AUD 62.65
NEW S WALES TREA 0.50 10/07/2022 AUD 61.96
NEW S WALES TREA 0.50 10/28/2022 AUD 61.81
NEW S WALES TREA 0.50 11/18/2022 AUD 62.18
NEW S WALES TREA 0.50 12/16/2022 AUD 61.98
NEW S WALES TREA 0.50 02/02/2023 AUD 61.11
NEW S WALES TREA 0.50 03/20/2023 AUD 60.74
RESOLUTE MINING 12.00 12/31/2012 AUD 1.95
TREAS CORP VICT 0.50 08/25/2022 AUD 63.19
TREAS CORP VICT 0.50 11/12/2030 AUD 61.69
TREAS CORP VICT 0.50 11/12/2030 AUD 43.35
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 66.17
HONG KONG
---------
CHINA SOUTH CITY 13.50 01/14/2016 USD 71.57
CHINA SOUTH CITY 13.50 01/14/2016 USD 66.05
RESPARCS FUNDING 8.00 12/29/2049 USD 23.75
SINO-OCEAN LAND 10.25 12/31/2049 USD 71.50
SINO-OCEAN LAND 10.25 12/31/2049 USD 69.02
INDIA
-----
INDIA GOVT BOND 6.01 03/25/2028 INR 73.87
PRAKASH IND LTD 5.25 04/30/2015 INR 74.75
PUNJAB INFRA DB 0.40 10/15/2024 INR 26.02
PUNJAB INFRA DB 0.40 10/15/2025 INR 23.48
PUNJAB INFRA DB 0.40 10/15/2026 INR 21.22
PUNJAB INFRA DB 0.40 10/15/2027 INR 19.29
PUNJAB INFRA DB 0.40 10/15/2028 INR 17.58
PUNJAB INFRA DB 0.40 10/15/2029 INR 16.06
PUNJAB INFRA DB 0.40 10/15/2030 INR 14.70
PUNJAB INFRA DB 0.40 10/15/2031 INR 13.48
PUNJAB INFRA DB 0.40 10/15/2032 INR 12.39
PUNJAB INFRA DB 0.40 10/15/2033 INR 11.42
SHIV-VANI OIL 5.00 08/17/2015 USD 71.60
SUZLON ENERGY LT 5.00 04/13/2016 USD 59.69
VIDEOCON INDUS 6.75 12/16/2015 USD 69.66
JAPAN
-----
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 63.85
JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 63.16
SHINSEI CORP 9.20 12/29/2049 GBP 68.33
TAKEFUJI CORP 9.20 04/15/2011 USD 5.25
TOKYO ELEC POWER 1.43 02/10/2015 JPY 73.62
TOKYO ELEC POWER 1.42 04/27/2015 JPY 72.12
TOKYO ELEC POWER 0.64 04/28/2015 JPY 70.62
TOKYO ELEC POWER 1.11 05/29/2015 JPY 70.87
TOKYO ELEC POWER 1.35 06/15/2015 JPY 71.25
TOKYO ELEC POWER 0.92 07/16/2015 JPY 69.37
TOKYO ELEC POWER 1.36 08/12/2015 JPY 70.12
TOKYO ELEC POWER 1.59 12/28/2015 JPY 68.37
TOKYO ELEC POWER 2.08 05/31/2016 JPY 67.87
TOKYO ELEC POWER 1.97 06/27/2016 JPY 69.37
TOKYO ELEC POWER 2.06 08/31/2016 JPY 66.75
TOKYO ELEC POWER 2.12 03/24/2017 JPY 65.62
TOKYO ELEC POWER 1.75 09/28/2017 JPY 64.99
TOKYO ELEC POWER 1.60 05/29/2019 JPY 63.25
TOKYO ELEC POWER 1.37 10/29/2019 JPY 64.87
TOKYO ELEC POWER 2.05 10/29/2019 JPY 61.62
TOKYO ELEC POWER 1.81 02/28/2020 JPY 74.75
TOKYO ELEC POWER 1.48 04/28/2020 JPY 68.00
TOKYO ELEC POWER 1.39 05/28/2020 JPY 60.45
TOKYO ELEC POWER 1.31 06/24/2020 JPY 59.71
TOKYO ELEC POWER 1.94 07/24/2020 JPY 62.61
TOKYO ELEC POWER 1.22 07/29/2020 JPY 58.54
TOKYO ELEC POWER 1.15 09/08/2020 JPY 58.06
TOKYO ELEC POWER 1.63 07/16/2021 JPY 58.96
TOKYO ELEC POWER 2.34 09/29/2028 JPY 56.78
TOKYO ELEC POWER 2.40 11/28/2028 JPY 54.50
TOKYO ELEC POWER 2.20 02/27/2029 JPY 54.25
TOKYO ELEC POWER 2.11 12/10/2029 JPY 53.62
TOKYO ELEC POWER 1.95 07/29/2030 JPY 53.75
TOKYO ELEC POWER 2.36 05/28/2040 JPY 52.50
MALAYSIA
--------
ADVANCED SYNERY 2.00 01/26/2018 MYR 0.09
ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.50
ASTRAL SUPREME 3.00 08/0/2021 MYR 0.09
CRESENDO CORP B 3.75 01/11/2016 MYR 1.31
DUTALAND BHD 6.00 04/11/2013 MYR 0.75
DUTALAND BHD 6.00 04/11/2013 MYR 0.44
EASTERN & ORIENT 8.00 07/25/2011 MYR 1.38
ENCORP BHD 6.00 02/17/2016 MYR 0.90
KUMPULAN JETSON 5.00 11/27/2012 MYR 1.22
LION DIVERSIFIED 4.00 12/17/2013 MYR 0.62
MALTON BHD 6.00 06/30/2018 MYR 0.83
MITHRIL BHD 3.00 04/05/2012 MYR 0.65
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.23
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.23
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.42
PANTECH GROUP 7.00 12/21/2017 MYR 0.09
PRESS METAL BHD 6.00 08/22/2019 MYR 1.81
PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.53
REDTONE INTL 2.75 03/04/2020 MYR 0.10
RUBBEREX CORP 4.00 08/14/2012 MYR 0.75
SCOMI ENGINEERING 4.00 03/19/2013 MYR 0.59
SCOMI GROUP 4.00 12/14/2012 MYR 0.07
SENAI-DESARU EXP 1.35 06/30/2027 MYR 44.94
SENAI-DESARU EXP 1.35 12/31/2027 MYR 43.66
SENAI-DESARU EXP 1.35 06/30/2028 MYR 42.37
SENAI-DESARU EXP 1.35 06/29/2029 MYR 39.90
SENAI-DESARU EXP 1.35 06/30/2031 MYR 34.45
TRADEWINDS CORP 2.00 02/26/2016 MYR 0.81
TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.60
TRC SYNERGY 5.00 01/20/2012 MYR 1.67
WAH SEONG CORP 3.00 05/21/2012 MYR 2.30
WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.50
YTL CEMENT BHD 5.00 11/10/2015 MYR 2.31
NEW ZEALAND
-----------
BLUE STAR GROUP 9.10 09/15/2015 NZD 5.00
DORCHESTER PACIF 5.00 06/30/2013 NZD 71.03
INFRATIL LTD 8.50 09/15/2013 NZD 6.50
INFRATIL LTD 8.50 11/15/2015 NZD 7.20
INFRATIL LTD 4.97 12/29/2049 NZD 58.00
KIWI INCOME PROP 8.95 12/20/2014 NZD 1.06
NEW ZEALAND POST 7.50 11/15/2039 NZD 66.12
NZF GROUP 6.00 03/15/2016 NZD 10.37
TOWER CAPITAL 8.50 04/15/2014 NZD 1.02
TRUSTPOWER LTD 8.50 09/15/2012 NZD 6.20
TRUSTPOWER LTD 8.50 03/15/2014 NZD 6.80
UNI OF CANTERBUR 7.25 12/15/2019 NZD 1.02
SINGAPORE
---------
BAKRIE TELECOM 11.50 05/07/2015 USD 64.75
BAKRIE TELECOM 11.50 05/07/2015 USD 64.82
BLUE OCEAN 11.00 06/28/2012 USD 33.00
CAPITAMALLS ASIA 1.00 01/21/2012 SGD 0.97
CAPITAMALLS ASIA 2.15 01/21/2014 SGD 1.05
DAVOMAS INTL FIN 11.00 12/08/2014 USD 49.00
F&N TREASURY PTE 2.48 03/28/2016 SGD 0.45
F&N TREASURY PTE 3.15 03/28/2018 SGD 1.00
NEXUS 1 PTE LTD 10.50 03/07/2012 SGD 6.18
SENGKANG MALL 4.00 11/20/2012 SGD 0.45
SENGKANG MALL 8.00 11/20/2012 SGD 0.45
UNITED ENG LTD 1.00 03/03/2014 SGD 1.20
WBL CORPORATION 2.50 06/10/2014 SGD 1.20
SOUTH KOREA
-----------
CN 1ST ABS 8.00 02/27/2015 KRW 31.64
CN 1ST ABS 8.30 11/27/2015 KRW 32.87
EX-IMP BK KOREA 0.50 10/23/2017 KRW 61.90
EX-IMP BK KOREA 0.50 12/22/2017 KRW 59.48
HYUNDAI SWISS BK 7.90 07/23/2015 KRW 60.24
KOREA MUTUAL SAV 8.00 12/17/2015 KRW 59.56
SRI LANKA
---------
SRI LANKA GOVT 7.00 10/01/2023 LKR 74.36
SRI LANKA GOVT 5.35 03/01/2026 LKR 60.76
*********
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 ***