/raid1/www/Hosts/bankrupt/TCRAP_Public/111129.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 29, 2011, Vol. 14, No. 236
Headlines
A U S T R A L I A
INVESTIC BANK: Fitch Affirms Individual Rating at 'C'
METAL STORM: Shareholders Meeting Set for Dec. 8
SENSASLIM AUSTRALIA: TGA Bans SensaSlim Spray
SENSASLIM AUSTRALIA: P. Foster to Stay in Jail Until December 7
SHAFSTON COLLEGE: Avoids Liquidation; Settles Insolvency Claims
* AUSTRALIA: Lloyds' Aussie Unit Sells AUD1.7BB Distressed Loans
C H I N A
CHINA SHENGHUO: Posts $502,000 Net Loss in Third Quarter
WEST CHINA: Fitch Affirms Rating on Sr. Unsecured Debt at 'BB'
* CHINA: Issues Rules to Aid Firms Thru Debt-For-Equity Swaps
H O N G K O N G
ASE ASSEMBLY: Commences Wind-Up Proceedings
ASIAN EAGLE: Placed Under Voluntary Wind-Up Proceedings
BEAR STEARNS: Members' Final Meeting Set for Dec. 30
CEPTRON HK: Creditors' Proofs of Debt Due Dec. 28
CHITLINK ELECTRONIC: Placed Under Voluntary Wind-Up Proceedings
EDEN'S NATURAL: Placed Under Voluntary Wind-Up Proceedings
EXCELLENCE CONSULTANTS: Watt Hung Chow Appointed as Liquidator
FIVECHIT (CONSULTANTS): Commences Wind-Up Proceedings
FOX-PITT KELTON: Members' Final Meeting Set for Dec. 28
G-CHANNELS LIMITED: Members' Final Meeting Set for Dec. 28
GLOBAL PLANNER: Kwok Siu Man Appointed as Liquidator
GREEN POWER: Placed Under Voluntary Wind-Up Proceedings
HENDERSON LAND: Commences Wind-Up Proceedings
HK LOGISTICS: Members' Final Meeting Set for Dec. 28
HK SUPPLY: Members' Final Meeting Set for Dec. 28
I N D I A
ADARSH DEVELOPERS: Fitch Cuts National LT Rating to 'BB+'
ADARSH REALTY: Fitch Lowers Rating on INR2.75-Mil. Loan to 'B'
AEGIS LIMITED: Moody's Withdraws '(P)Ba3' Corporate Family Rating
ASHAPURA MINECHEM: Peck Issues Tongue Lashing, Grants Chapter 15
BLUE STAR: CRISIL Assigns 'CRISIL B' Rating to INR5MM LT Loan
DURRUNG ISPAT: CRISIL Rates INR150MM Cash Credit at 'CRISIL BB-'
ENVIRO PLASTECH: Delays in Loan Repayment Cue CRISIL Junk Ratings
GAGAN FERROTECH: CRISIL Upgrades Rating on INR85.5MM Loan to 'B-'
JAI JALARAM: CRISIL Puts 'CRISIL B' Rating on INR75MM Cash Credit
J. B. COTTON: CRISIL Rates INR115MM Cash Credit at 'CRISIL BB-'
JOYA ENG'G: CRISIL Places 'CRISIL BB-' Rating on INR7.5MM Loan
JPS BALAJI: CRISIL Assigns 'CRISIL BB-' Rating to INR143MM Loan
JUGAL KISHORE: CRISIL Places 'CRISIL BB' Rating on INR40MM Loan
KINGFISHER AIRLINES: Lessors Set to Grab Planes
KRYPTON INDUSTRIES: CRISIL Puts 'BB-' Rating on INR10.1MM Loan
KUSTERS CALICO: CRISIL Assigns 'CRISIL BB' Rating to INR40MM Loan
LINK QUEST: CRISIL Assigns 'CRISIL BB+' Rating to INR50MM Loan
MARS THERAPEUTICS: CRISIL Puts CRISIL B- Rating on INR60MM Loan
NUCLEUS SATELLITE: CRISIL Puts CRISIL BB+ Rating on INR75MM Loan
RACHANA CONSTRUCTIONS: CRISIL Rates INR30MM Loan at 'CRISIL B+'
R.K.COTTON: CRISIL Assigns CRISIL B Rating to INR3.4MM Term Loan
SAF FERMION: CRISIL Assigns 'CRISIL BB+' Rating to INR50MM Loan
SREE ANDAL: CRISIL Rates INR180MM Cash Credit at 'CRISIL B+'
STRUCTURAL SOLUTIONS: CRISIL Puts 'BB' Rating on INR5MM Loan
WINNER NIPPON: Fitch Raises Rating on INR37.6 Mil. Loan to 'B+'
J A P A N
MIZUHO FINANCIAL: Fitch Affirm Rating on Pref. Securities at 'BB'
* JAPAN: Debt Could Become Unsustainable, IMF Warns
N E W Z E A L A N D
MASSIVE ACTION: In Liquidation; Creditors Won't Get Repayment
NZ FARMING: Shareholders Approve Olam Loan Extension
ZION WILDLIFE: High Court to Decide Who Owns Big Cats
S I N G A P O R E
ANNISTON PTE: Creditors' Proofs of Debt Due Dec. 27
CELESTIAL NUTRIFOODS: Court to Hear Wind-Up Petition on Dec. 2
ELECTROGLAS PRIVATE: Creditors Get 100% Recovery on Claims
HI-LINKS MARITIME: Creditors' Proofs of Debt Due Dec. 27
JURONG TECHNOLOGIES: Court Enters Wind-Up Order
T A I W A N
CHANG HWA BANK: Fitch Affirms Individual Rating at 'C'
FAR EASTERN AIR: Will Seek Court's OK to End Restructuring
T H A I L A N D
UNITED OVERSEAS: Fitch Affirms Individual Rating at 'C'
X X X X X X X X
* BOND PRICING: For the Week Nov. 22 to Nov. 25, 2011
- - - - -
=================
A U S T R A L I A
=================
INVESTIC BANK: Fitch Affirms Individual Rating at 'C'
-----------------------------------------------------
Fitch Ratings has affirmed Investec Bank (Australia) Limited's
Long-Term Issuer Default Rating (IDR) and Support Rating.
Simultaneously, the agency has placed the bank's Short-Term IDR,
Viability Rating and Individual Rating on Rating Watch Negative
(RWN). Also, IBAL's Long-Term IDR remains on Negative Outlook.
Significant asset quality deterioration and high impairment
charges during the half year ended Sept. 30, 2011 (H112) are the
main drivers for placing IBAL's Short-Term IDR, Viability Rating
and Individual Rating on RWN. The Negative Outlook on IBAL's
Long-Term IDR reflects the bank's close relationship with its
parent, UK-based Investec Bank plc (IBP; Long-Term IDR
'BBB'/Outlook Negative/Short-Term IDR 'F3'). IBAL's strong
liquidity position is a key reason its Short-Term IDR is 'F2',
one notch above IBP's.
IBAL's impaired assets rose to AUD353m (10.5% of gross loans) in
H112 from AUD214 million (6.3%) at FYE11. Most of these assets
relate to a portfolio of commercial property development loans
which IBAL is seeking to exit through asset sales. IBAL expects
to realize a significant portion of this portfolio by FYE12;
however, as identified through the asset sales process current
market values were below book value in many cases, and the bank
has therefore reported some losses. Given IBAL's desire to exit
these positions in a short timeframe, further substantial losses
are possible if market conditions weaken further.
The increase in impaired assets also resulted in a significant
rise in impairment charges reflecting current market conditions,
which in turn led to an after-tax loss of AUD23m in H112.
Impairment charges are likely to remain elevated in H212 as IBAL
continues with its asset sale process. Pre-impairment operating
profit is modest, relative to peers, meaning IBAL has a limited
ability to absorb significant impairment charges.
IBAL's key rating strengths are its strong liquidity and capital
positions. Despite some deterioration in these positions during
FY11 and H112, both remain high relative to other Australian
banks. At H1E12, IBAL's high-quality liquid asset holdings
equated to 32% of liabilities, while the bank's core Tier 1
capital ratio was 13.3%. Should either or both of these
positions deteriorate significantly, a negative rating action on
IBAL's Viability Rating is likely.
The RWN on IBAL's Short-Term IDR, Viability Rating and Individual
Rating will be resolved following IBAL's FY12 results, when
greater clarity on the success of the asset sale process is
expected. A negative rating action is likely if IBAL fails to
significantly reduce impaired asset levels through this process
or should the process have a material negative impact on
capitalisation. As part of the review, Fitch will also consider
the impact of a weaker operating environment on IBAL's business
model more broadly and any changes in the potential for support
from IBP.
A change in IBP's Long-Term IDR, particularly if a negative
rating action were taken, would likely result in a similar action
on IBAL's Long-Term IDR.
Established in 1997, IBAL is a provider of niche lending and
investment banking services in Australia and is part of the
global Investec group.
The following rating actions have been taken:
Investec Bank (Australia) Limited
-- Long-term IDR: affirmed at 'BBB'; Negative Outlook;
-- Short-term IDR: 'F2'; On Rating Watch Negative (RWN);
-- Viability rating: 'bbb'; On RWN;
-- Individual rating: 'C'; On RWN;
-- Support rating: affirmed at '2';
-- AUD government guaranteed debt: affirmed at 'AAA';
-- Unguaranteed senior unsecured debt: affirmed at 'BBB'; and
-- Subordinated debt: affirmed at 'BBB-'.
METAL STORM: Shareholders Meeting Set for Dec. 8
------------------------------------------------
Metal Storm Limited will hold a meeting of shareholders at the
Brisbane Room, Management House, Australian Institute of
Management, cnr Boundary & Rosa Streets, Spring Hill, Brisbane on
Dec. 8, 2011, commencing at 10:00 am Brisbane time.
The following proposals will be considered at the Annual Meeting:
(1) Approval of issue of the ASOF Convertible Security to
ASOF;
(2) Approval of previous issue of Commencement Fee Shares to
ASOF;
(3) Approval of previous issue of Shares to Andrew Doyle; and
(4) Approval of issue of Shares to Dutchess under Line
Agreement;
A full-text copy of the notice is available for free at:
http://is.gd/0qRsm3
About Metal Storm
Headquartered in Darra, Queensland, Australia, Metal Storm
Limited is a defense technology company with offices in Australia
and the United States. It specializes in the research, design,
development and integration of projectile launching systems
utilizing its "electronically initiated / stacked projectile"
technology for use in the defense, homeland security, law
enforcement and industrial markets.
As reported by the TCR on July 25, 2011, PricewaterhouseCoopers,
in Brisbane, Australia, expressed substantial doubt about Metal
Storm's ability to continue as a going concern. The independent
auditors noted that the Company has suffered recurring losses
from operations and has a net capital deficiency.
The Company reported a net loss of A$8.94 million on
A$3.35 million of revenue for 2010, compared with a net loss of
A$11.31 million on A$1.11 million of revenue for 2009.
The Company's balance sheet at Dec. 31, 2010, showed
A$2.15 million in total assets, A$20.64 million in total
liabilities, all current, and an equity deficit of
A$18.49 million.
SENSASLIM AUSTRALIA: TGA Bans SensaSlim Spray
---------------------------------------------
The Age reports that the Therapeutic Goods Administration has
banned shonky diet nasal spray SensaSlim nearly a year after the
regulator first received a complaint about the product.
According to the report, the TGA said SensaSlim would be taken
off the register of therapeutic goods by December 1, making it
illegal to sell, supply, advertise, export or import it. The
watchdog said it was taking the action because of advertising
breaches by manufacturer SensaSlim Australia Pty Ltd, not because
of safety concerns, the report relays.
The Age states that the action comes after the Australian
Competition and Consumer Commission accused staff at the
insolvent company of misleading and deceptive conduct in its
promotion of the spray which sold for up to $1,200 a litre.
The case also led to the arrest of convicted conman Peter Foster
on allegations he breached a court order banning him from the
weight-loss industry, the report adds.
As reported in the Troubled Company Reporter-Asia Pacific on
July 6, 2011, SmartCompany said SensaSlim Australia has been
placed into administration and has appointed John Kukulovski --
john@jirschsutherland.com.au -- of Jirsch Sutherland as
administrator. An unnamed company spokesman blamed the collapse
on the freezing of its bank accounts, according to SmartCompany.
The Federal Court in Sydney in June upheld a freeze on
SensaSlim's assets after allegations from the ACCC that the
company had misled and deceived consumers, SmartCompany noted.
SensaSlim said at the time it had little money other than the
frozen bank accounts and Justice Jacobsen said the court would
quickly consider evidence on how much money the company needed to
continue operating, SmartCompany related.
SensaSlim Australia Pty Ltd is a supplier of a nasal diet spray
marketed as an effective weight loss product.
SENSASLIM AUSTRALIA: P. Foster to Stay in Jail Until December 7
---------------------------------------------------------------
The Herald Sun reports that Peter Foster will remain in custody
for at least another nine days, after his bail application was
adjourned yesterday, November 28.
Mr. Foster was arrested earlier this month and charged with
contempt of court, after Australian Competition and Consumer
Commission (ACCC) allegations that he breached an order banning
him from participating in the weight-loss industry.
According to the report, the commission is pursuing him in the
Federal Court over his alleged involvement in the sale and
marketing of diet spray Sensaslim.
The report notes that the ACCC alleges Mr. Foster's involvement
in the company between December 2009 and September 2010 directly
contravened a Federal Court order made in 2005 in relation to his
weight-loss company Chaste Corporation Pty Ltd.
In that case, the Herald Sun recalls, Justice Bruce Lander found
Mr. Foster made false representations that independent clinical
trials showed the weight-loss pills sold by Chaste Corporation
were "safe to use and effective".
The Herald Sun relates that Justice Lander ordered Mr. Foster not
to be involved with any business "relating to weight loss,
cosmetic or health industry products or services of any kind" for
a period of five years from September 2005.
Mr. Foster first appeared on the contempt charge in the Federal
Court in Brisbane last week.
His lawyer, Paul Smith, indicated the 48-year-old wanted to be
released on bail until the matter is determined.
The bail hearing was set down Monday, but Federal Court staff
said it had been adjourned until December 7, the report adds.
As reported in the Troubled Company Reporter-Asia Pacific on
July 6, 2011, SmartCompany said SensaSlim Australia has been
placed into administration and has appointed John Kukulovski --
john@jirschsutherland.com.au -- of Jirsch Sutherland as
administrator. An unnamed company spokesman blamed the collapse
on the freezing of its bank accounts, according to SmartCompany.
The Federal Court in Sydney in June upheld a freeze on
SensaSlim's assets after allegations from the ACCC that the
company had misled and deceived consumers, SmartCompany noted.
SensaSlim said at the time it had little money other than the
frozen bank accounts and Justice Jacobsen said the court would
quickly consider evidence on how much money the company needed to
continue operating, SmartCompany related.
SensaSlim Australia Pty Ltd is a supplier of a nasal diet spray
marketed as an effective weight loss product.
SHAFSTON COLLEGE: Avoids Liquidation; Settles Insolvency Claims
---------------------------------------------------------------
The Brisbane Times reports that Shafston College has avoided a
costly court battle over its possible liquidation after settling
its debt with an international student placement agency.
Sonya International Education Centre lodged an application in the
Supreme Court in September for Shafston College to be declared
insolvent and placed in the hands of liquidators over AUD234,972
in unpaid commissions.
According to the report, Shafston College director Cameron Lloyd,
son of the college's founder Keith Lloyd, said he was pleased the
matter had been settled out of court and the case for liquidation
subsequently dismissed.
Brisbane Times relates that Sonya International claimed Shafston
College failed to pay agreed commissions of AUD2,196 for 107
international students. However, Mr. Lloyd was "dumbfounded" at
the allegation, saying some of the students listed in the
originating affidavit had never enrolled at the college, the
report relays.
Mr Lloyd said there was no evidence to suggest the college owed
the placement agency the larger fee.
Both parties, according to Brisbane Times, agreed to a sum
payable of AUD21,449.26.
Mr. Lloyd said the college no longer deals with Sonya
International, the report adds.
About Shafston College
Based in Brisbane, Australia, Shafston College is a tertiary
Institution, which caters for overseas students primarily
studying English and information technology courses.
* AUSTRALIA: Lloyds' Aussie Unit Sells AUD1.7BB Distressed Loans
----------------------------------------------------------------
The Wall Street Journal reports that Lloyds Banking Group PLC's
Australian subsidiary said it has sold AUD1.7 billion
(US$1.75 billion) of distressed property loans in Australia and
New Zealand to Morgan Stanley and Goldman Sachs.
The Journal relates that a spokeswoman for BOS International, the
local subsidiary of Lloyds, said the firm was pleased with the
outcome of the sale "as it frees capital and management resources
to focus on our ongoing business."
"We feel those companies are much better placed to manage those
property portfolios, which are not core to our business," the
spokeswoman added.
According to the news agency, the bank, which is 41%-owned by the
U.K. government, is scrambling to offload poor-performing assets
and is in the final stages of a potential sale of 632 branches it
needs to unload as a condition of state aid received in 2008 and
2009.
The Journal relates that Lloyds said it will identify a preferred
option for the branches by the end of the year, but the process
has been complicated by the leave of absence taken by Chief
Executive Antonio Horta-Osorio.
Lloyds currently has a market capitalization of œ15.2 billion
(US$23.6 billion), a third of its œ45.2 billion value at the
beginning of the year. Moody's Investors Service put the bank's
credit rating on review for downgrade two weeks ago, citing the
"significant upheaval" from Mr. Horta-Os¢rio's absence.
As reported by the Troubled Company Reporter-Europe on Aug. 9,
2011, the Financial Times related that shares in Lloyds plunged
to less than half the price the UK government paid for them in
its GBP21 billion bail-out of Britain's biggest high-street bank
at the height of the global financial crisis. Lloyds, which
remains 41% owned by the government, fell further into the red in
the first half of the year, reporting a GBP3.25 billion pre-tax
loss, as the bank suffered a worsening of bad debt trends and
took a previously announced GBP3.2 billion provision to clear up
its share of the industry-wide misselling scandal involving
payment protection insurance, the FT disclosed. The stock closed
down 10% at 34.99p on Aug. 4, compared with the average 74p price
at which the bail-out money was injected, the FT noted.
About Lloyds Banking Group PLC
Lloyds Banking Group plc -- http://www.lloydsbankinggroup.com/--
is a financial services group providing a range of banking and
financial services, primarily in the United Kingdom, to personal
and corporate customers. The Company operates in four segments:
Retail, Wholesale, Wealth and International, and Insurance. Its
main business activities are retail, commercial and corporate
banking, general insurance, and life, pensions and investment
provision. It also operates an international banking business
with a global footprint in over 30 countries. Services are
offered through a number of brand, including Lloyds TSB, Halifax,
Bank of Scotland, Scottish Widows, Clerical Medical and
Cheltenham Gloucester, and a range of distribution channels. In
March 2010, Capita Group Plc acquired Ramesys (Holdings) Ltd from
Lloyds Banking Group plc's Lloyds Bank. In April 2011, Lloyds
Banking Group plc's LDC bought gas and chemicals business, A-Gas,
and a stake in UK2 Group, a Web hosting company.
=========
C H I N A
=========
CHINA SHENGHUO: Posts $502,000 Net Loss in Third Quarter
--------------------------------------------------------
China Shenghuo Pharmaceutical Holdings, Inc., filed its quarterly
report on Form 10-Q, reporting a net loss of $502,099 on
$10.9 million of sales for the three months ended Sept. 30, 2011,
compared with net income of $830,238 on $8.6 million of sales for
the comparable period in 2010.
The Company reported a net loss of $311,008 on $31.2 million of
sales for the nine months ended Sept. 30, 2011, compared with net
income of $793,133 on $23.3 million of sales for the same period
last year.
The Company's balance sheet at Sept. 30, 2011, showed
$53.6 million in total assets, $51.8 million in total
liabilities, and stockholders' equity of $1.8 million.
"In the nine months ended Sept. 30, 2011, the Company suffered a
net loss [attributable to stockholders] of $302,756 due to
increase of raw materials' price from 2010, the increase of
research and development expense, interest expense and less
subsidy income," the Company said in the filing.
"Our consolidated current liabilities exceeded consolidated
current assets by approximately $23.2 million as of Sept. 30,
2011, and approximately $15.3 million as of Dec. 31, 2010. These
factors raise substantial doubt about the Company's ability to
continue as a going concern."
A copy of the Form 10-Q is available for free at:
http://is.gd/QG1Bwy
Incorporated in Delaware, China Shenghuo Pharmaceutical Holdings,
Inc. (NYSE Alternext US: KUN) through its subsidiaries, designs,
develops, markets, sells and exports pharmaceutical, nutritional
supplements, cosmetic products, and also engages in the hotel
operating business mainly in the People's Republic of China. The
Company also conducts research and development using the
medicinal herb Panax notoginseng, also known as Sanqi, Sanchi, or
Tienchi, which is grown in two provinces in the PRC.
WEST CHINA: Fitch Affirms Rating on Sr. Unsecured Debt at 'BB'
--------------------------------------------------------------
Fitch Ratings has revised West China Cement Limited's Outlook to
Negative from Stable. The agency has affirmed WCC's Long-Term
Foreign Currency Issuer Default Rating (IDR) and senior unsecured
debt at 'BB'.
The Outlook revision is driven by the ongoing price war in
Shaanxi province exacerbated by falling demand and rising raw
material prices, which has weakened WCC's margins. In addition,
the company undertook an aggressive 7.2m ton capacity expansion
in Xinjiang and Shaanxi this year, which will result in leverage,
as measured by net debt/EBITDAR, exceeding 2x at end-2011.
However, Fitch expects improvement in market conditions by mid-
2012. The scale and sustainability of this improvement and WCC's
discipline to scale back capex will be key factors for
determining whether further negative actions are warranted.
The price war in Shaanxi is driven by leading players focusing
operations in the central part of the province. While WCC's core
market in southern Shaanxi is relatively isolated, rising raw
material costs mean that it is now achieving a gross margin of
CNY70-80 per ton compared with CNY96/ton achieved in H111 and
CNY118/ton in H110. In addition, demand has weakened due to the
scaling back of some infrastructure projects in H211 and
unusually high rainfall in September. WCC's strength from
geographic isolation is reflected in its margins which, while
weakened, is significantly above the CNY0-25/ton achieved by
players in central Shaanxi.
Fitch notes that the price depression in Shaanxi does not reflect
nationwide trends, which have shown only marginal declines. The
exit of smaller and less efficient players during the price war
and the recovery of demand as the government executes non-rail
related infrastructure projects in Shaanxi will likely result in
market improvement in the province by mid-2012. This along with
the ramping of production from WCC's new plants should improve
WCC's margins. If WCC is disciplined in managing its capex in
2012, its leverage may recover to below 1.5x by end-2012.
Following the Outlook revision, Fitch may downgrade WCC's rating
if its gross profit stays below CNY90/ton on a sustained basis,
capacity utilisation stays below 90%, capex for 2012 exceeds
CNY500m, or if its leverage remains above 1.5x by end-2012. The
rating Outlook may be revised back to Stable if WCC shows signs
of gross profit reverting back to above CNY100/ton on a sustained
basis, with utilisation rates above 90%, resulting in leverage
being sustained below 1.5x.
* CHINA: Issues Rules to Aid Firms Thru Debt-For-Equity Swaps
-------------------------------------------------------------
China Daily reports that the State Administration for Industry
and Commerce (SAIC) on November 23 released rules to help fund-
strapped firms restructure debts and improve cash flow through
debt-for-equity swaps.
The news agency relates that the move is the government's latest
effort to protect companies, especially small firms facing
difficulty accessing bank loans, from being hurt by tightening
monetary measures aimed at stemming inflation.
According to China Daily, the rules, published by SAIC on its
website, specify how companies should register changes in capital
after creditors cancel their debts in exchange for equities in
the firms.
Debt-for-equity swaps are legal in China but did not require
registry before, the report discloses. The issuance of the rules
is expected to provide better regulation and legal support for
such practices, China Daily relays.
The move "aims to help enterprises reduce their debt burdens and
solve their funding problems," Zhou Bohua, head of the SAIC, told
Xinhua, China Daily relays. "Some domestic companies, especially
small and medium-sized enterprises, are facing difficulties in
funding due to the global financial crisis," said Mr. Zhou.
Mr. Zhou, as cited by China Daily, noted that while the role of
debt-for-equity swaps should be given full play to support
company restructuring and encourage social investment, the risks
of such practices must be effectively contained.
With a tightening monetary policy and a slowdown in external
demand, China's economy has slowed to its weakest pace in two
years, a trend likely to continue, the report notes.
To support ailing small businesses, the government has announced
a series of measures including raising the threshold for
corporate value-added taxes and sales taxes, reducing some other
taxes and scrapping some administrative fees, says China Daily.
================
H O N G K O N G
================
ASE ASSEMBLY: Commences Wind-Up Proceedings
-------------------------------------------
Sole shareholder of ASE Assembly & Test (H.K.) Limited, on
Nov. 18, 2011, passed a resolution to voluntarily wind up the
company's operations.
The company's liquidator is:
Philip Richard Nicholls
1408 World-Wide House
19 Des Voeux Road
Central, Hong Kong
ASIAN EAGLE: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------
At an extraordinary general meeting held on Nov. 18, 2011,
creditors of Asian Eagle Limited resolved to voluntarily wind up
the company's operations.
The company's liquidator is:
But Yun Wai
3/F., Kam Sang Building
257 Des Voeux Road
Central, Hong Kong
BEAR STEARNS: Members' Final Meeting Set for Dec. 30
----------------------------------------------------
Members of Bear Stearns Far East Limited will hold their final
meeting on Dec. 30, 2011, at 10:00 a.m., at 35th Floor, One
Pacific Place, 88 Queensway, in Hong Kong.
At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the
company's liquidators, will give a report on the company's wind-
up proceedings and property disposal.
CEPTRON HK: Creditors' Proofs of Debt Due Dec. 28
-------------------------------------------------
Creditors of Ceptron HK Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
Dec. 28, 2011, to be included in the company's dividend
distribution.
The company's liquidators are:
Stephen Briscoe
Wong Teck Meng
602 The Chinese Bank Building
61-65 Des Voeux Road
Central, Hong Kong
CHITLINK ELECTRONIC: Placed Under Voluntary Wind-Up Proceedings
---------------------------------------------------------------
At an extraordinary general meeting held on Nov. 4, 2011,
creditors of Chitlink Electronic International Limited resolved
to voluntarily wind up the company's operations.
The company's liquidators are:
Boswell Anthony David Kenneth
Lam Hok Chung Rainier
PricewaterhouseCoopers
22/F Prince's Building
Central, Hong Kong
EDEN'S NATURAL: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on Nov. 15, 2011,
creditors of Eden's Natural Synergy (HK) Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Chung Cheuk Ming
Room 08, 5/F
Chinachem Golden Plaza
77 Mody Road
Tsimtshatsui East
Hong Kong
EXCELLENCE CONSULTANTS: Watt Hung Chow Appointed as Liquidator
--------------------------------------------------------------
Watt Hung Chow on Nov. 15, 2011, was appointed as liquidator of
Excellence Consultants Limited.
The liquidator may be reached at:
Watt Hung Chow
Room 1903, New World Tower
18 Queen's Road
Central, Hong Kong
FIVECHIT (CONSULTANTS): Commences Wind-Up Proceedings
-----------------------------------------------------
Members of Fivechit (Consultants) Limited, on Nov. 23, 2011,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Lee King Yue
72-76/F., Two International Finance Centre
8 Finance Street
Central, Hong Kong
FOX-PITT KELTON: Members' Final Meeting Set for Dec. 28
-------------------------------------------------------
Members of Fox-Pitt, Kelton (Asia) Limited will hold their final
general meeting on Dec. 28, 2011, at 10:00 a.m., at 36/F, Tower
Two, Times Square, at 1 Matheson Street, Causeway Bay, in
Hong Kong.
At the meeting, Sy Mei Ling, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
G-CHANNELS LIMITED: Members' Final Meeting Set for Dec. 28
----------------------------------------------------------
Members of G-Channels Limited will hold their final meeting on
Dec. 28, 2011, at 11:00 a.m., at 25/F, Wing On Centre, at 111
Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
GLOBAL PLANNER: Kwok Siu Man Appointed as Liquidator
----------------------------------------------------
Kwok Siu Man on Nov. 15, 2011, was appointed as liquidator of
Global Planner Investment Limited.
The liquidator may be reached at:
Kwok Siu Man
11th Floor, Lai Sun Commercial Centre
680 Cheung Sha Wan Road
Kowloon, Hong Kong
GREEN POWER: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------
At an extraordinary general meeting held on Nov. 15, 2011,
creditors of Green Power Health Products International Company
Limited resolved to voluntarily wind up the company's operations.
The company's liquidators are:
Chow Cheuk Lap
Cheng Siu Hang
3rd Floor Alliance Building
133 Connaught Road
Central, Hong Kong
HENDERSON LAND: Commences Wind-Up Proceedings
---------------------------------------------
Members of Henderson Land Credit (2004) Limited, on Nov. 23,
2011, passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Lee King Yue
72-76/F., Two International Finance Centre
8 Finance Street
Central, Hong Kong
HK LOGISTICS: Members' Final Meeting Set for Dec. 28
----------------------------------------------------
Members of Hong Kong Logistics and Supply Chain Management
Association Limited will hold their final meeting on Dec. 28,
2011, at 10:00 a.m., at 21/F., Tai Yau Building, at 181 Johnston
Road, Wanchai, in Hong Kong.
At the meeting, Yu Kwong Man, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
HK SUPPLY: Members' Final Meeting Set for Dec. 28
-------------------------------------------------
Members of Hong Kong Supply Chain Management Association Limited
will hold their final meeting on Dec. 28, 2011, at 10:00 a.m., at
21/F, Tai Yau Building, 181 Johnston Road, Wanchai, in Hong Kong.
At the meeting, Yu Kwong Man, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
=========
I N D I A
=========
ADARSH DEVELOPERS: Fitch Cuts National LT Rating to 'BB+'
--------------------------------------------------------
Fitch Ratings has downgraded India-based Adarsh Developers'
National Long-Term rating to 'Fitch B+(ind)' from 'Fitch BB-
(ind)'. The Outlook is Negative. A full rating breakdown is
provided below.
The downgrade reflects Adarsh's higher-than-expected financial
leverage (gross adjusted (including guarantees) debt/EBIDTA) of
9.60x in FY11 (FY10 (end-March): 9.68x) - well above the earlier
negative guideline of 8.0x. It is attributed to significant under
achievement of sales, leading to an EBIDTA of INR1,455m in FY11
(FY10: INR1,358.8m) and resorting to higher debt to bridge the
shortfall in cash flows.
The ratings continue to be constrained by the high level of
borrowings relative to the current scale of operations, which has
resulted in the high level of gearing compared to peers. Adarsh's
gearing (total adjusted debt/networth) was 4.31x in FY11 (FY10:
4.81x). The Negative Outlook reflects Fitch's view that Adarsh
may find it difficult to improve sales significantly in the
short- to medium-term in light of the difficult conditions
currently faced by the Indian real estate sector.
Adarsh is a closely held partnership firm, with the majority
share of 99.95% being held by the managing partner. The partners
have two other key ventures, namely Adarsh Realty & Hotels
Private Limited ('Fitch B(ind)'/Negative) and Adarsh Prime
Projects Limited. Adarsh has been supporting the ventures through
unsecured loans and the partners have provided personal
guarantees for their borrowings. Fitch expects the financial
support to continue.
A successful demonstration of the projected level of apartment
and villa sales resulting in an improvement in leverage to below
7.0x would result in a Stable Outlook. Any slowdown in sales
leading to liquidity pressures and/or refinancing risks would
impact the ratings negatively.
As per Adarsh's FY11 audited financials, the company reported
revenue of INR3,122.1m (FY10: INR3,168.0m), an EBIDTA of
INR1,455m (FY10: INR1,358.8m) and a profit before tax of
INR590.5m (INR528.9m).
Rating actions on Adarsh's bank facilities are as follows:
- INR2,144.35m long-term loans: downgraded to 'Fitch B+(ind)'
from 'Fitch BB-(ind)'
- INR1,000m overdraft limit: downgraded to 'Fitch B+(ind)' from
'Fitch BB-(ind)' and withdrawn as the facility has been repaid
in full after being converted to a term loan.
ADARSH REALTY: Fitch Lowers Rating on INR2.75-Mil. Loan to 'B'
--------------------------------------------------------------
Fitch Ratings has downgraded India-based Adarsh Realty & Hotels
Private Limited's National Long-Term rating to 'Fitch B(ind)'
from 'Fitch B+(ind)'. The Outlook is Negative. Adarsh Realty's
INR2,750m long-term loan has also been downgraded to 'Fitch
B(ind)' from 'Fitch B+(ind)'.
The downgrade follows the similar rating action on Adarsh
Developers (Fitch B+(ind), Negative), with whom Adarsh Realty has
strong operational and financial ties (For further details,
please refer to the rating action commentary, entitled "Adarsh
Developers Downgraded to 'Fitch B+(ind)'/Negative ", dated 25
November 2011 and available at www.fitchratings.com). The group
managing partner has a 99.95% share in Adarsh Realty and provided
a personal guarantee for the latter's term loans. The company
has also received unsecured loans from Adarsh Developers.
Adarsh Realty is currently executing a major capex of INR4,397.6m
in relation to its present scale of operations. Fitch expects
Adarsh Realty to remain dependent upon Adarsh Developers for
financial support until the project is implemented and
stabilized, and starts generating operating cash flows sufficient
enough for debt servicing from FY13 onwards
Adarsh Realty's ratings will move in tandem with that of Adarsh
Developers, with an improvement in the parent's credit profile
leading to an improvement in the former's credit profile.
Adarsh Realty was incorporated in 1996, and has been operating a
hospitality property 'The Palm Meadows Club' in Whitefield,
Bangalore, since 2005. It has also been operating a business
hotel 'Adarsh Hamilton' in Bangalore since May 2010. It is
implementing a five-star hotel project 'Adarsh Palace Road' in a
tie-up with the Shangri-La group. For the financial year ended
March 2011 (FY11), the company reported (provisional, unaudited)
revenue of INR216.18m (FY10: INR172.8m), an EBIDTA of INR54.95m
(INR82.2m) and an EBITDA margin of 25.4% (47.6%).
AEGIS LIMITED: Moody's Withdraws '(P)Ba3' Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service has withdrawn Aegis Limited provisional
(P)Ba3 corporate family rating, and the provisional (P)Ba3 rating
on its proposed bonds.
Ratings Rationale
Moody's has withdrawn the ratings for its own business reasons.
Aegis Limited is an Indian-based company providing customer
relationship management and other business process outsourcing
(BPO) for businesses in the telecom, media and technology
sectors. With some 53,000 employees worldwide and around 300
clients, it is a leading player in the BPO sector and
increasingly extending into other areas such as network and
technology services. Owned by the Essar Group, Aegis recorded
revenue of INR32.1bn and EBITDA of INR4.6bn in the year to March
2011.
ASHAPURA MINECHEM: Peck Issues Tongue Lashing, Grants Chapter 15
----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Ashapura Minechem Ltd. won Chapter 15 protection
from creditors in the U.S. after receiving a dressing down from
U.S. Bankruptcy Judge James M. Peck for "a strategic error of
colossal portions." Judge Peck, in New York, said that the
Chapter 15 filing in early October was the "latest example" of
"coordinated efforts" by the company and its managing directors
indicating that they "are not acting in good faith."
According to the report, Ashapura resorted to Chapter 15 to
forestall collection in the U.S. of more than $100 million in
judgments handed down in arbitrations commenced in London by two
shippers. For reasons not explained to Judge Peck, the company
decided not to oppose the arbitrations.
The report relates that Judge Peck said the company filed in
Chapter 15 "to avoid the consequences of its own failure to deal
with the arbitrations in a commercially reasonable manner."
Regardless of the company's blunders, Judge Peck said the
question turned on whether previously filed reorganization
proceedings in India qualified as a collective administrative
proceeding entitling the company to Chapter 15 protection. Judge
Peck recited how the law in India governing the proceedings had
been revoked by the legislature after being criticized as
"deficient" and "subject to abuse." Even though revoked, the law
is still being followed in India, Peck said.
According to the report, Judge Peck heard testimony on procedures
in India and granted Chapter 15 protection after concluding it
provide for creditor protection and afforded a right of appeal.
The judge nonetheless is requiring the company to make reports
every two months. He kept the door open for creditors to show
that the Indian proceedings "in actual practice are prejudicing"
their rights.
Judge Peck also "strongly encourages the parties to stop
posturing and start talking to each other in a manner that may
lead to a compromise of the objectors' claims."
The shippers who won the judgments and opposed relief in Chapter
15 are Armada (Singapore) Pte Ltd. and Eitzen Bulk A/S. Ashapura
mines iron ore, bentonite, and bauxite. It said it owes $70.1
million to secured lenders. Unsecured claims, not including the
arbitration awards, total $29 million, a court filing said. The
petition claims assets are worth more than $100 million.
About Ashapura
Ashapura Minechem Ltd. is an industrial company incorporated
under the provisions of the Companies Act 1956, having its
registered office in Mumbai, India. It is listed with the Bombay
Stock Exchange and National Stock Exchange of India, Ltd. It is
engaged in the business of mining, processing and trading
minerals and ores, namely: Bentonite, a versatile clay having
applications in foundries, iron ore pellatization, oil well
drilling and civil engineering; Bauxite, the principal ore used
for manufacturing alumina which is in turn used to produce
Aluminum metal; Barytes, a clay with high specific gravity and is
mainly used in oil well drilling; Iron ore, the principal ore for
manufacturing steel.
Ashapura is also engaged in the manufacturing of value added
Bentonite for advanced applications for usage in paper, cosmetic
and edible oil industries. The company also offers to arrange
for logistical support for transportation and shipping of
minerals which it sells to its customers.
Chetan Shah, as foreign representative of Ashapura, filed a
petition for protection under Chapter 15 of the U.S. Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 11-14668) on Oct. 4, 2011.
Attorney for the foreign representative is Ira A. Reid, Esq., at
Baker & McKenzie LLP. The Chapter 15 petition estimated the
Debtor's assets and debts to be between $100 million and
$500 million.
BLUE STAR: CRISIL Assigns 'CRISIL B' Rating to INR5MM LT Loan
-------------------------------------------------------------
CRISIL has assigned 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Blue Star Construction Co.
Facilities Ratings
---------- -------
INR90 Million Cash Credit CRISIL B/Stable (Assigned)
INR5 Million Proposed Long-Term CRISIL B/Stable (Assigned)
Bank Loan Facility
INR165 Million Bank Guarantee CRISIL A4 (Assigned)
The ratings reflect the extensive experience of BSCC's promoters
in the roads construction industry and allied activities. The
rating strength is partially offset by the moderate financial
risk profile of the company, reflected in its modest networth,
high gearing levels and subdued debt protection indicators
coupled with the working capital intensive nature of its
operations.
Outlook: Stable
CRISIL expects Blue Star Construction Company to maintain a
stable business risk profile on the back of extensive experience
of the promoter in the road construction industry and allied
activities. The outlook may be revised to 'Positive' if the firm
reports substantial growth in scale of operations and
profitability while improving its working capital cycle and debt
protection indicators. The outlook may be revised to 'Negative'
if the firm's financial risk profile deteriorates due to
lengthening of its operating cycle or if the firm suffers a
decline in its revenues or profitability.
About Blue Star
Established in the year 1978 as a partnership firm, Blue Star
Construction Company is a civil contractor engaged in
construction and maintenance of roads. The firm is also engaged
in manufacturing and laying paver blocks, undertaking projects
for earth filling works and waste water treatment. The firm was
established by Mr. Pandurang Thakur along with his 3 brothers.
The firm is currently managed by Mr. Pandurang Thakur and
primarily carries out construction activities in the state of
Maharashtra.
BSCC reported a profit after tax (PAT) of INR39 million on net
sales of INR476.89 million (provisional figures) for 2010-11
(refers to financial year, April 1 to March 31), as against a PAT
of INR37.85 million on net sales of INR527.28 million for 2009-
10.
DURRUNG ISPAT: CRISIL Rates INR150MM Cash Credit at 'CRISIL BB-'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the cash
credit facility of Durrung Ispat Pvt Ltd.
Facilities Ratings
---------- -------
INR150 Million Cash Credit CRISIL BB-/Stable (Assigned)
The rating reflects the need-based financial and managerial
support that DIPL is expected to receive from its promoter, the
Tirupati group. This rating strength is partially offset by
DIPL's small scale of operations, low bargaining power with
supplier, and weak debt protection metrics.
Outlook: Stable
CRISIL believes that DIPL will continue to benefit over the
medium term from the support it derives from the Tirupati group
and extensive experience of its promoter in the cylinder
manufacturing industry. The outlook may be revised to 'Positive'
if the company significantly improves its financial risk profile
and increases its scale of operations, along with diversifying
its revenue profile. Conversely, the outlook may be revised to
'Negative' in case of less-than-expected cash accruals, or less-
than-anticipated support from the Tirupati group, or
deterioration in DIPL's capital structure.
About Durrung Ispat
Established in 1989, DIPL commenced trading operations in 2007-08
(refers to financial year, April 1 to March 31). The company is
the sole authorised buyer of hot rolled coils used in liquefied
petroleum gas (LPG) cylinders for the cylinder manufacturing
business of its promoter, the Tirupati group. The Tirupati group,
established in the 1980s, has three cylinder manufacturing
companies - International Cylinders Pvt Ltd (ICL; rated 'CRISIL
BB+/Stable/CRISIL A4+'), Tirupati LPG Industries Ltd (TLPG; rated
'CRISIL BB+/Stable/CRISIL A4+'), and Tirupati Cylinders Ltd (TCL;
rated 'CRISIL BB+/Stable/CRISIL A4+'). ICL, TLPG, and TCL have
cylinder manufacturing units in Paonta Sahib (Himachal Pradesh),
Selakui Dehradun (Uttarakhand), and Muzaffarnagar (Uttar
Pradesh), respectively. Together, these companies have a combined
manufacturing capacity of over 2 million LPG cylinders. The
Tirupati group mainly supplies cylinders to oil marketing
companies, such as Indian Oil Corporation Ltd, Bharat Petroleum
Corporation Ltd, and Hindustan Petroleum Corporation Ltd. Apart
from cylinder manufacturing, the group also has interest in
metals, pharmaceuticals, hotel, and real estate industries.
For 2010-11, DIPL reported net profit of INR4.2 million on an
operating income of INR1.23 billion, against net profit of INR3.9
million on an operating income of INR1.15 billion for 2009-10.
ENVIRO PLASTECH: Delays in Loan Repayment Cue CRISIL Junk Ratings
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the bank facilities
of Enviro Plastech Pvt Ltd.
Facilities Ratings
---------- -------
INR45 Million Cash Credit CRISIL D (Assigned)
INR78 Million Rupee Term Loan CRISIL D (Assigned)
INR20 Million Letter of Credit CRISIL D (Assigned)
The rating reflects instances of delay by EPPL in servicing its
debt; the delays have been caused by the company's weak
liquidity.
EPPL also has large working capital requirements, start-up nature
of operations, and a weak financial risk profile marked by high
gearing and weak debt protection measures. These rating
weaknesses are partially offset by the extensive experience of
EPPL's promoter in the packaging industry.
About Enviro Plastech
EPPL was established in 2009 by Mr. Vishal Patel. The company
manufactures PET (Polyethyelene Terephthalate) flakes, PET
sheets, and PET straps from waste PET bottles at its plant in
Kalol (Gujarat). The plant was built at a total cost of INR115
million, funded with a term loan of INR78 million. The plant
commenced commercial production from July 2010. Currently, EPPL
has a capacity to manufacture 500 tonnes per month (tpm) of PET
flakes and 80 tpm of PET sheets. The company is installing
machinery for PET straps with a capacity of 125 tpm, which began
operations from July 2011. EPPL's promoter has been in a similar
line of business through another group concern; Vishal Containers
Ltd (rated 'CRISIL BB/Stable/CRISIL A4+').
EPPL is estimated to report a net loss of INR2.8 million on net
sales of INR76.3 million for 2010-11 (refers to financial year,
April 1 to March 31).
GAGAN FERROTECH: CRISIL Upgrades Rating on INR85.5MM Loan to 'B-'
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Gagan
Ferrotech Ltd to 'CRISIL B-/Stable/CRISIL A4' from 'CRISIL
D/CRISIL D'.
Facilities Ratings
---------- -------
INR85.5 Million Term Loan CRISIL B-/Stable (Upgraded
(Reduced from INR545 Million) from CRISIL D')
INR937 Million Cash Credit CRISIL B-/Stable (Upgraded
(Enhanced from INR150 Million) from 'CRISIL D')
INR7.5 Million Bank Guarantee CRISIL A4 (Upgraded from
(Enhanced from INR5 Million) 'CRISIL D')
INR50 Million Letter of Credit CRISIL A4 (Assigned)
INR50 Million Inland/Import CRISIL A4 (Assigned)
Letter of Credit
The upgrade reflects GFL's timely servicing of its debt in the
four months ended September 2011. The upgrade also reflects
CRISIL's belief that GFL will generate adequate cash accruals to
meet its term debt obligations over the medium term.
The ratings reflect GFL's working-capital-intensive operations.
The rating also factors in the susceptibility of the company's
operating margin to volatility in raw material prices. These
rating weaknesses are partially offset by the extensive
experience of GFL's promoters in the coal and iron ore industry.
Outlook: Stable
CRISIL believes that GFL will continue to benefit from its
promoters' extensive industry experience, over the medium term.
The outlook may be revised to 'Positive' if GFL generates more-
than-expected revenues and profitability, resulting in an
improvement in the company's liquidity. Conversely, the outlook
may be revised to 'Negative' if GFL's revenues and net cash
accruals decline significantly, or if the company faces time and
cost overruns in its debt-funded capital expenditure programmes
thereby weakening its financial risk profile.
About Gagan Ferrotech
GFL was set up in 1993 by Mr. Deepak Agarwal and Mr. Vinay
Agarwal. The company was involved in coal trading until 2006,
after which it started manufacturing sponge iron in Durgapur
(West Bengal). The promoters also own another company,
Shakambhari Overseas Trades Pvt Ltd (rated by 'CRISIL
B/Stable/CRISIL A4'). Currently, GFL has an installed capacity of
126,000 tonnes per annum (tpa) at its sponge iron unit. The
company also commissioned a rolling mill in March 2010 with an
installed capacity of 108,000 tpa and a billet manufacturing
facility of 118,000 tpa. GFL is also setting up a power plant of
12-megawatt capacity, to be used for captive power consumption;
the plant is expected to be commissioned by December 2011 (it was
initially proposed to be commissioned by July 2011). The
commercial production in the power plant is expected to start
from February-March 2012.
GFL reported a profit after tax (PAT) of INR29.78 million on net
sales of INR3310.16 million for 2010-11 (refers to financial
year, April 1 to March 31), as against a PAT of INR30.78 million
on net sales of INR640.08 million for 2009-10.
JAI JALARAM: CRISIL Puts 'CRISIL B' Rating on INR75MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the cash
credit facility of Jai Jalaram Ceramic Works Pvt Ltd.
Facilities Ratings
---------- -------
INR75 Million Cash Credit CRISIL B/Stable (Assigned)
The rating reflects Jai's weak financial risk profile, marked by
high gearing and low interest coverage ratio, small scale of
operations in the highly fragmented cotton ginning industry, and
vulnerability of its business and profitability to changes in
government policy. These rating weaknesses are partially offset
by the extensive industry experience of Jai's promoter.
Outlook: Stable
CRISIL believes that Jai will continue to benefit over the medium
term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' if the company significantly
improves its capital structure either by equity infusion or cash
accruals. Conversely, the outlook may be revised to 'Negative' if
Jai's financial risk profile deteriorates further due to
increased working capital-related debt or in case of change in
government policy having a negative impact on its operations.
About Jai Jalaram
Set up in 1973, Jai was purchased by its present promoter in
2007. The company is engaged in cotton ginning and manufactures
ceramic pipes, which constitute around 5 per cent of its
revenues. Located in Vijapur (Gujarat), the company has an
installed ginning capacity of 50 candies per day. The company is
promoted and managed by Mr. Ramanbhai Joitram Patel.
Jai reported a profit after tax (PAT) of INR2.2 million on net
sales of INR240.2 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a net loss of INR0.6 million on
net sales of INR161.1 million for 2009-10.
J. B. COTTON: CRISIL Rates INR115MM Cash Credit at 'CRISIL BB-'
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the cash
credit facility of J. B. Cotton Industries.
Facilities Ratings
---------- -------
INR115 Million Cash Credit CRISIL BB-/Stable (Assigned)
The rating reflects JBI's weak financial risk profile, marked by
high gearing and low interest coverage ratio, and vulnerability
of its business and profitability to changes in government
policy. These rating weaknesses are partially offset by the
extensive industry experience of Jai's partners.
Outlook: Stable
CRISIL believes that JBI will continue to benefit over the medium
term from its partners' extensive industry experience. The
outlook may be revised to 'Positive' if the firm significantly
improves its capital structure either by equity infusion or cash
accruals. Conversely, the outlook may be revised to 'Negative' if
JBI's financial risk profile deteriorates further due to
increased working capital-related debt or in case of change in
government policy having a negative impact on its operations.
About J. B. Cotton
Set up in 2005, JBI is engaged in cotton ginning activity.
Located in Vijapur (Gujarat), the firm has an installed ginning
capacity of 100 candies per day and crushing capacity of 3.5
tonnes per day. The firm is owned and managed by Mr. Ramanbhai
Joitram Patel.
JBI reported a book profit of INR3.3 million on net sales of
INR516 million for 2010-11 (refers to financial year, April 1 to
March 31), as against a book profit of INR2.3 million on net
sales of INR295.3 million for 2009-10.
JOYA ENG'G: CRISIL Places 'CRISIL BB-' Rating on INR7.5MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Joya Engineering Industries.
Facilities Ratings
---------- -------
INR7.5 Million Cash Credit CRISIL BB-/Stable (Assigned)
INR67.5 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect JEI's modest scale of operations and the
risks associated with high customer concentration. These rating
weaknesses are partially offset by the extensive experience of
JEI's partners in the bulk material handling industry and strong
financial risk profile marked by healthy capital structure and
strong debt protection measures.
Outlook: Stable
CRISIL believes that JEI will benefit over the medium term from
its partners' extensive experience in the bulk material handling
industry and its long-standing relationships with its key
customer, Larsen & Toubro Ltd (rated 'CRISIL
AAA/FAAA/Stable/CRISIL A1+'). The outlook may be revised to
'Positive' in case of significant scale-up of its operations
while maintaining its profitability levels and capital structure.
Conversely, the outlook may be revised to 'Negative' in case of
deterioration in JEI's operating margin resulting in a
deterioration in its debt protection metrics or in case of a
significant stretch in its working capital cycle.
About Joya Engineering
JEI was established in 1973 as a partnership concern by the
Kolkata (West Bengal) based Deb family. JEI manufactures and
supplies bulk material handling equipments. JEI has a
manufacturing facility in Kolkata with installed capacity of 1200
pulleys and 36,000 sets of idlers per annum. The firm provides
pulleys and idlers to various industries, such as cement, power,
and transportation. Larsen & Toubro Ltd is its major customer and
has been dealing with the firm for close to three decades.
Mr. Nitai Chandra Deb and his brother, Mr. Suranjan Deb, are the
firm's partners and have more than three decades of experience in
the bulk material handling equipment industry. Mr. Kaushik Deb
(son of Mr. Nitai Chandra Deb) and Mr. Souvik Deb (son of Mr.
Suranjan Deb) have recently joined JEI as partners.
JEI reported a profit after tax (PAT) of INR7.0 million on net
sales of INR112.3 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR4.1 million on net
sales of INR55.5 million for 2009-10.
JPS BALAJI: CRISIL Assigns 'CRISIL BB-' Rating to INR143MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long-
term bank facilities of JPS Balaji Reinforced Pipe Pvt Ltd.
Facilities Ratings
---------- -------
INR143 Million Term Loan CRISIL BB-/Stable (Assigned)
INR80 Million Cash Credit CRISIL BB-/Stable (Assigned)
The rating reflects the extensive industry experience of JPS's
promoters and the funding support that they extend to the
company. These rating strengths are partially offset by JPS's
small scale of operations, customer and geographic concentration,
and expected deterioration in financial risk profile because of
its large, debt-funded capital expenditure (capex) towards its
ongoing project to double its pipe manufacturing capacity.
Outlook: Stable
CRISIL believes that JPS will continue to benefit over the medium
term from its promoters' extensive industry experience and their
funding support. The outlook may be revised to 'Positive' if JPS
improves its financial risk profile, most likely by completing
its ongoing project without any time or cost overrun and
increasing its sales and profitability to more-than-expected
levels. Conversely, the outlook may be revised to 'Negative' if
the company's financial risk profile deteriorates, most likely
because of any significant time or cost overrun in its ongoing
project, or lower-than-expected increase in its sales and
profitability.
About JPS Balaji
JPS was incorporated in 2009 and started operations in August
2009. The company is promoted by two brothers, Mr. Charanjeet
Singh and Mr. Harjeet Singh, along with their wives, Mrs. Jyoti
Sahni and Mrs. Pummy Sahni, respectively. JPS is engaged in
manufacturing glass reinforced plastic pipes that find
application in industrial and domestic wastewater treatment. The
company is doubling its current production capacity; the enhanced
capacities are expected to be operational from January 2012
onwards.
JPS reported a profit after tax (PAT) of INR3.1 million on net
sales of INR 185.2 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a loss of INR 0.7 million on net
sales of INR48.4 million for 2009-10.
JUGAL KISHORE: CRISIL Places 'CRISIL BB' Rating on INR40MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of Jugal Kishore Mahanta.
Facilities Ratings
---------- -------
INR40 Million Cash Credit CRISIL BB/Stable (Assigned)
INR110 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect JKM's moderate financial risk profile, marked
by modest gearing and healthy debt protection metrics, and
healthy business prospects in the civil construction sector in
Assam/north eastern India. These rating strengths are partially
offset by JKM's small scale of operations, limited revenue
diversity, and large working capital requirements, led by
stretching of receivables.
Outlook: Stable
CRISIL believes that JKM will benefit over the medium term from
the healthy growth prospects for the infrastructure and
construction sector in Assam/north eastern India. The outlook may
be revised to 'Positive' in case of significant improvement in
its revenue profile while sustaining its operating margin and
current financial risk profile. Conversely, the outlook may be
revised to 'Negative' in case of time or cost overruns in the
execution of JKM's projects leading to material liquidated
damages, or if the firm's financial risk profile deteriorates
significantly as a result of delays in collection of receivables
or any large debt-funded capital expenditure.
About Jugal Kishore
Based in Dibrugarh (Assam), JKM was set in 2000 by Mr. Jugal
Kishore Mahanta as a proprietorship firm. JKM undertakes civil
and infrastructure construction, primarily in the roads and
highways segments. It is registered as Class 1 contractor in the
Assam region. The promoter has interests in other entities, such
as Chandrawali Commercial India Pvt Ltd, Rangdoi Tea Company, NE
Thermeon Pvt Ltd, Netgen Power Pvt Ltd, and Net Mettalics.
JKM reported a profit before tax (PBT) of INR12.1 million on net
sales of INR282.17 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PBT of INR19.3 million on net
sales of INR403.13 million for 2009-10.
KINGFISHER AIRLINES: Lessors Set to Grab Planes
-----------------------------------------------
Dow Jones' DBR Small Cap reports that airplane-leasing companies
are preparing to repossess planes from India's Kingfisher
Airlines Ltd. if the troubled carrier's finances deteriorate
further, said an executive at one of the companies.
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops. It maintains bases in major cities such as Delhi and
Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known
for its United Breweries unit, and the carrier shares the
Kingfisher brand with a popular Indian beer. UB Holdings also
owns a stake in another domestic carrier, Air Deccan, whose
operations it combined with Kingfisher Airlines in mid-2008.
Kingfisher Airlines began flying in 2005.
* * *
Kingfisher Airlines has lost money six years in a row,
accumulating net debt of INR77.2 billion (US$1.74 billion) as of
March 2010, according to data compiled by Bloomberg.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 16, 2011, The Economic Times said Kingfisher Airlines Ltd.
has found itself parrying questions about its survival after its
auditor raised doubts over the company's ability to stay in
business for long. Audit firm BK Ramadhyani & Co, which
examined the books of the airline, said in remarks published in
the airline's annual report that Kingfisher's ability to remain a
"going concern" will depend on its promoters bringing in money
into the company. The auditors also said Kingfisher has not
deposited with the government money it collected from employees
as tax deducted at source and provident fund contribution,
painting a dire picture of the airline's finances, The Economic
Times reported.
The Times of India has reported that Kingfisher Airlines
cancelled 12 flights from Delhi and several more from across
India reportedly due to a shortage of cabin crew and pilots. The
airline is also facing severe fuel problems due to non-payment of
dues.
KRYPTON INDUSTRIES: CRISIL Puts 'BB-' Rating on INR10.1MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Krypton Industries Ltd (KIL; part of the
Krypton group.)
Facilities Ratings
---------- -------
INR10.1 Million Term Loan CRISIL BB-/Stable (Assigned)
INR45 Million Cash Credit CRISIL BB-/Stable (Assigned)
INR17.6 Million Proposed Cash CRISIL BB-/Stable (Assigned)
Credit Limit
INR25 Million Foreign Bill CRISIL A4+ (Assigned)
Purchase
INR21.5 Million Letter of Credit CRISIL A4+ (Assigned)
INR0.8 Million Bank Guarantee CRISIL A4+ (Assigned)
INR10 Million Packing Credit CRISIL A4+ (Assigned)
The ratings reflect the Krypton group's established relationship
with its customers and moderate financial risk profile. These
rating strengths are partially offset by the Krypton group's
modest scale of operations, large working capital requirement,
and susceptibility to volatility in raw material prices.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of KIL and its subsidiaries, Eco Wheels
Pvt Ltd and Krypton Industries (Suzhou) Co Ltd. This is because
the group companies are in the same line of businesses and have
operational and financial linkages. The companies have been
together referred to as the Krypton group.
Outlook: Stable
CRISIL believes that the Krypton group will continue to benefit
over the medium term from its established relationship with its
customers. The outlook may be revised to 'Positive' in case
better-than-expected growth in revenues and profitability thereby
improving its financial risk profile, or if the group's business
risk profile improves through greater geographical
diversification and stability in its operating margin.
Conversely, the outlook may be revised to 'Negative' in case the
Krypton group's turnover and profitability decline, or if it
undertakes a larger-than-expected debt-funded capital expenditure
(capex) programme.
About the Group
KIL is the flagship company in the Krypton group. It was
established 1991 and had set up a 100 per cent export-oriented
unit in Falta export processing zone in West Bengal to
manufacture tubeless cycle tyres. The company is presently
manufacturing tubeless polyurethane (PU) tyres, tubes, wheels,
castors, polyurethane shoe soles, and footwear. Also, the
subsidiaries of KIL is engaged into similar line of operations
i.e. manufacturing of PU Tyres, Wheel chairs crutches and
walkers. The majority stake of its subsidiaries is held by KIL.
The Krypton group reported a profit after tax (PAT) of INR9.6
million on net sales of INR365 million for 2010-11 (refers to
financial year, April 1 to March 31), as against a PAT of INR7.5
million on net sales of INR311 million for 2009-10.
KUSTERS CALICO: CRISIL Assigns 'CRISIL BB' Rating to INR40MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of Kusters Calico Machinery Ltd.
Facilities Ratings
---------- -------
INR40 Million Cash Credit CRISIL BB/Stable (Assigned)
INR40 Mil. Export Packing Credit CRISIL A4+ (Assigned)
INR10 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect KCML's moderate financial risk profile,
marked by low gearing and healthy debt protection metrics,
established market position, and extensive industry experience of
the promoter. These rating strengths are partially offset by
KCML's high dependence on textile industry, which is prone to
cyclicality, and small scale of operations.
Outlook: Stable
CRISIL believes that KCML will benefit from its healthy order
book position and its foray into newer markets like Turkey, which
lends strong revenue visibility over medium term. The outlook may
be revised to 'Positive' in case the company is able to sustain
the improved scale of operations while achieving significant
improvement in margins over the medium term along with healthy
order book, resulting in improved business risk profile.
Conversely, the outlook may be revised to 'Negative' in case
sharp decline in revenues and margins or the company undertakes
larger-than-expected debt-funded capital expenditure programme,
thereby weakening its financial risk profile.
About Kusters Calico
KCML was established in 1996 as a joint venture of Eduard Kusters
Maschinenfabrik GmbH & Co, Germany, and Calico Industrial
Engineers in a profit-sharing ratio of 70:30 respectively. KCML
manufactures textile process house machinery and spares that are
used for dyeing, bleaching, singeing, raising, and shrinking
(sanforising). These processes mainly convert grey fabric into
processed fabrics.
KCML reported a profit after tax (PAT) of INR5.9 million on net
sales of INR297 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR12.5 million on net
sales of INR298 million for 2009-10.
LINK QUEST: CRISIL Assigns 'CRISIL BB+' Rating to INR50MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to
the long-term bank facilities of Link Quest Telecom Limited (Link
Quest).
Facilities Ratings
---------- -------
INR50.0 Million Cash Credit CRISIL BB+/Stable (Assigned)
INR45.7 Million Term Loan CRISIL BB+/Stable (Assigned)
INR5.0 Million Letter of CRISIL A4+ (Assigned)
Credit & Bank Guarantee
The ratings reflect the benefit it derives from experienced
management team, strong customer base and wide range of services
it offers in the telecom wireless industry and its comfortable
financial risk profile. These rating strengths are partially
offset by its relatively modest scale of operations, limited
track record and its revenue concentration.
Outlook: Stable
CRISIL expects Link Quest to maintain its business risk profile
backed by its established customer relationship and experienced
management team. The outlook may be revised to 'Positive' in case
of better than expected revenue or operating profitability driven
by improvement in client base or operating efficiency.
Conversely, the outlook may be revised to 'Negative' in case of
significant debt funded capital expenditure or lower than
expected accruals leading to deterioration in company's financial
risk profile.
About Link Quest
Link Quest, incorporated in 1996 as a private limited company,
was taken over by Kolkata based Mr. Shomenath Roy Choudhury in
2007-08 (refer to financial year ended, April 1 to March 31). It
was subsequently reconstituted as limited company in 2008. The
company is engaged in providing turnkey network solutions for
telecom infrastructure companies, telecom operators and
corporates. Headquartered in Noida, (UP) the company provides
solutions in the field of 2G/ 3G/3.5G/ HSPA/ EVDO/ LTE Wireless
Network. Other areas of service in the telecom and information
technology domain are Radio network planning, tuning,
benchmarking, Auditing and Optimization; system integration,
network optimization, transmission planning etc. Link Quest also
provides placement and deployment of manpower services, which
forms majority of its revenue.
MARS THERAPEUTICS: CRISIL Puts CRISIL B- Rating on INR60MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Mars Therapeutics and Chemicals Ltd.
Facilities Ratings
---------- -------
INR60.0 Million Cash Credit CRISIL B-/Stable (Assigned)
INR5.0 Million Letter of Credit CRISIL A4 (Assigned)
INR5.0 Million Bank Guarantee CRISIL A4 (Assigned)
The ratings reflect the company's weak financial risk profile,
small scale of operations, and exposure to risks relating to
fluctuations in raw materials prices and intense competition.
These rating weaknesses are partially offset by the promoters'
extensive experience in the industry and financial support.
Outlook: Stable
CRISIL believes that MTCL will face pressure on its liquidity
over the medium term as its cash accruals are expected to tightly
match its debt obligations and because of incremental working
capital requirements to fund growth. The outlook may be revised
to 'Positive' if the company scales up its operations
significantly, resulting in better-than-expected cash accruals,
and reports improvement in its financial flexibility driven by
increase in its net worth, most likely through fresh equity
infusion by the promoters. Conversely, the outlook may be revised
to 'Negative' if the company's revenues and profitability come
under pressure, there is delay in financial support from
promoter, or it undertakes a large debt-funded capex programme
over the medium term.
About Mars Therapeutics
MTCL was established as a private limited company by Mr. P Appa
Rao and his wife Mrs. Vasundhara Devi in 1993. It was later
reconstituted as a closely held public limited company in 1995.
The company manufactures pharmaceutical formulations for the
domestic market. Its wide product range comprises generic drugs
in the form of tablets, capsules, and liquid orals. The
manufacturing facility is based in Secunderabad (Andhra Pradesh).
The company has set up an additional unit as a 100 per cent
Export-Oriented Unit (EOU) in Secunderabad at an investment of
about INR200 million to undertake contract manufacturing for the
export market.
MTCL reported a profit after tax (PAT) of INR3.4 million on net
sales of INR180 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.4 million on net
sales of INR165 million for 2009-10.
NUCLEUS SATELLITE: CRISIL Puts CRISIL BB+ Rating on INR75MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to
the bank facilities of Nucleus Satellite Communications (Madras)
Pvt Ltd.
Facilities Ratings
---------- -------
INR75 Million Cash Credit CRISIL BB+/Stable (Assigned)
INR8.9 Million Proposed Cash CRISIL BB+/Stable (Assigned)
Credit Limit
INR12.6 Million Long-Term Loan CRISIL BB+/Stable (Assigned)
INR3.5 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect Nucleus's above-average financial risk
profile, marked by healthy gearing and debt protection metrics,
its established market position, and the experience of its
promoters in the direct-to-home (DTH) industry. These rating
strengths are partially offset by the susceptibility of Nucleus's
operating margin to volatility in input prices and concentration
risks in its revenue profile.
Outlook: Stable
CRISIL believes that Nucleus will continue to benefit over the
medium term from the healthy demand prospects for the DTH
industry and its healthy capital structure. The outlook may be
revised to 'Positive' if the company significantly increases its
scale of operations and improves its profitability while
maintaining its capital structure. Conversely, the outlook may be
revised to 'Negative' if Nucleus undertakes a large, debt-funded
capital expenditure programme, or if its relationships with its
key customers deteriorate, resulting in significant decline in
revenues.
About Nucleus Satellite
Nucleus was set up as a partnership firm in 1995 by Mr. V Raman
and his brother, Mr. V Lakshman; it was reconstituted as a
private limited company in 1998 and currently manufactures and
supplies dish antennas to various DTH operators. The company's
manufacturing facility in Chennai (Tamil Nadu) has an installed
capacity of 3.6 million units per annum and an average capacity
utilization of 50 per cent during 2010-11 (refers to financial
year, April 1 to March 31). Previously, Nucleus manufactured dish
antennas for the export market, such as Dubai; however, in 2007
the company started concentrating on the domestic market with
evolution of the DTH industry in India. The company's key
customers, Airtel Digital TV, Sun Direct TV Private Ltd and Dish
TV India Ltd, accounted for around 85 per cent of its revenues in
2010-11.
Nucleus reported a provisional profit after tax (PAT) of INR 17.2
million on net sales of INR 628.9 million for 2010-11, as against
a PAT of INR23.4 million on net sales of INR 349.8 million for
2009-10.
RACHANA CONSTRUCTIONS: CRISIL Rates INR30MM Loan at 'CRISIL B+'
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Rachana Constructions.
Facilities Ratings
---------- -------
INR30 Million Cash Credit CRISIL B+/Stable (Assigned)
INR20 Million Bank Guarantee CRISIL A4 (Assigned)
The ratings reflect Rachana's large working capital requirements,
leading to a high total outside liabilities to tangible net worth
ratio and gearing, and its low operating margin. These rating
weaknesses are partially offset by Rachana's above-average debt
protection metrics and the extensive experience of the firm's
proprietor in the construction industry.
Outlook: Stable
CRISIL believes that Rachana will continue to benefit over the
medium term because of its above-average debt protection metrics
and its proprietor's extensive industry experience. The outlook
may be revised to 'Positive' if the firm improves its working
capital cycle thereby leading to improvement in its financial
risk profile. Conversely, the outlook may be revised to
'Negative' if there is a further stretch in Rachana's working
capital cycle, or in case the firm undertakes any significant
debt-funded capital expenditure programme leading to material
deterioration in its financial risk profile.
About Rachana Constructions
Rachana was set up as a partnership concern in 1991 and was
reconstituted as a proprietorship firm in 2008. It undertakes
civil construction activity such as construction of roads, dam,
drainage system, railway platforms, and buildings. Rachana bags
contracts mainly from government departments, such as
Brihanmumbai Municipal Corporation, Bhabha Atomic Research
Centre, Mumbai Railway Vikas Corporation, and from private
companies. The firm is managed by Mr. Rajendra Mistry.
Rachana's profit after tax (PAT) is estimated at INR6.6 million
on net sales of INR156 million for 2010-11 (refers to financial
year, April 1 to March 31), against a PAT of INR9 million on net
sales of INR221 million for 2009-10.
R.K.COTTON: CRISIL Assigns CRISIL B Rating to INR3.4MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of R. K. Cotton.
Facilities Ratings
---------- -------
INR3.4 Million Rupee Term Loans CRISIL B/Stable (Assigned)
INR26.6 Million Proposed Long-Term CRISIL B/Stable (Assigned)
Bank Loan Facility
INR40 Million Packing Credit CRISIL A4 (Assigned)
INR30 Million Foreign Bills CRISIL A4 (Assigned)
Negotiation
The ratings reflect RKC's small scale of operations, high
customer concentration, susceptibility of its operating margin to
volatility in raw material prices, and its below-average
financial risk profile marked by small net worth and weak debt
protection metrics. These rating weaknesses are partially offset
by the extensive experience of RKC's promoter in the garments
business and the healthy export prospects for the Indian
readymade garment industry.
Outlook: Stable
CRISIL believes that RKC will generate steady export revenues and
maintain stable profitability over the medium term. The outlook
may be revised to 'Positive' if there is a considerable
improvement in RKC's operating profitability and revenues,
leading to more-than-expected net cash accruals, or if there is a
reduction in its working capital borrowings, leading to
improvement in its gearing. Conversely, the outlook may be
revised to 'Negative' in case of any deterioration in RKC's
business level or profitability, or if the firm undertakes
larger-than-expected debt-funded capital expenditure programme or
acquisitions, adversely impacting its financial risk profile,
particularly liquidity.
About R. K. Cotton
RKC is a proprietorship concern, established in 1997. Mr. R Raj
Kumar, the proprietor, looks after the day-to-day business
activities. The firm was initially engaged in only merchant
export of garments, and diversified into manufacture and exports
of knitted garments in 2005. Its products consist of men's,
women's and children's wear. The firm has two manufacturing
facilities located at Tirupur, Tamilnadu. It has a capacity to
manufacture around 0.12 million garment pieces per month and
operates about 250 sewing machines. It meets its yarn
requirements from local sellers, while dyeing process is
outsourced from Delhi. The printing process is being undertaken
at one of the firms owned by the promoter. The firm fully exports
all of its output to various customers in Europe, with 60-70 per
cent of its export sales made to Takko Holdings Gmbh.
For 2010-11 (refers to financial year, April 1 to March 31), RKC
reported a net profit of INR2 million on net sales of INR155
million, against a net profit of INR2 million on net sales of
INR131 million for 2009-10.
SAF FERMION: CRISIL Assigns 'CRISIL BB+' Rating to INR50MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to
the bank facilities of SAF Fermion Ltd.
Facilities Ratings
---------- -------
INR50 Million Cash Credit CRISIL BB+/Stable (Assigned)
INR0.7 Million Proposed LT CRISIL BB+/Stable (Assigned)
Bank Loan Facility
INR6 Million Letter of Credit CRISIL A4+ (Assigned)
The ratings reflect SAF's above-average financial risk profile,
marked by low gearing and healthy debt protection metrics,
moderate business risk profile, supported by an established
network of stockists, and strong relationships with contract
manufacturers. These rating strengths are partially offset by
SAF's small scale of operations, and susceptibility to stiff
competition in pharmaceutical formulations business.
Outlook: Stable
CRISIL believes that SAF will continue to benefit over the medium
term from its above-average financial risk profile and its
promoter's extensive experience in the pharmaceutical industry.
The outlook may be revised to 'Positive' if SAF increases its
scale of operations and net worth, while sustaining its
profitability. Conversely, the outlook may be revised to
'Negative' in case of lower-than-expected revenues and
profitability, or in case of any significant debt-funded capital
expenditure, leading to weakening in the company's financial risk
profile, particularly liquidity.
About SAF Fermion
Incorporated in 1995, SAF markets and sells pharmaceutical
formulations in multiple dosages. Its product range includes
formulations in the anti-ulcer, anti-migraine, anti-tussive,
hepatoprotective, hemostatic, topical anti-infective, anti-
secretory and anti-inflammatory segments, and analgesics, calcium
supplements, and enzymes. Furthermore, SAF has also started
marketing various food supplements. SAF's day-to-day operations
are managed by its promoter and managing director, Mr. Shomenath
Roy Choudhury, who is assisted by a qualified team of
professionals.
SREE ANDAL: CRISIL Rates INR180MM Cash Credit at 'CRISIL B+'
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the cash
credit facility of Sree Andal and Company.
Facilities Ratings
---------- -------
INR180 Million Cash Credit CRISIL B+/Stable (Assigned)
The rating reflect SAC's below-average financial risk profile,
marked by a high gearing and weak debt protection metrics, modest
scale of operations, and exposure to intense competition in the
iron and steel trading industry. These rating weaknesses are
partially offset by the benefits that SAC derives from its
partners' extensive experience in trading in steel products and
its established relationship with its principals.
Outlook: Stable
CRISIL believes that SAC will continue to benefit from its
established track record in the steel trading business, over the
medium term. The outlook may be revised to 'Positive' if the firm
reports higher-than-expected increase in revenues and
profitability, supported by improvement in its debt protection
metrics. Conversely, the outlook may be revised to 'Negative' if
SAC reports deterioration in its debt protection metrics, because
of lower-than-expected growth in operating revenues, or a decline
in margins, or undertakes a significant debt-funded capital
expenditure programme, or if its partners withdraw substantial
capital from its account, thereby weakening its capital
structure.
About Sree Andal
Set up in 1992 and based in Chennai (Tamil Nadu), SAC is a
partnership concern promoted by Mr. M Subbiah and his family. The
firm trades in thermo-mechanically treated bars, channels,
angles, joists, and beams. SAC deals in products manufactured by
Rashtriya Ispat Nigam Ltd (rated 'CRISIL A1+'), Steel Authority
of India Ltd, and other re-rollers in Tamil Nadu.
SAC reported a profit after tax (PAT) of INR4.2 million on net
sales of INR1.41 billion for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR3.6 million on net
sales of INR1.25 billion for 2009-10.
STRUCTURAL SOLUTIONS: CRISIL Puts 'BB' Rating on INR5MM Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of Structural Solutions Pvt Ltd.
Facilities Ratings
---------- -------
INR5 Million Overdraft Facility CRISIL BB/Stable (Assigned)
INR30 Million Overdraft Facility CRISIL BB/Stable (Assigned)
INR155 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect SSPL's moderate financial risk profile,
marked by a moderate total outside liabilities to tangible net
worth ratio and comfortable debt protection metrics, and the
extensive industry experience of its promoters. These rating
strengths are partially offset by SSPL's modest scale of
operations and tender-based nature of business and low bargaining
power with its suppliers.
Outlook: Stable
CRISIL believes that SSPL will continue to benefit over the
medium term from its promoters' extensive experience in trading
engineering equipment and its established relationships with key
suppliers. The outlook may be revised to 'Positive' in case of
sustainable increase in the company's scale of operations and
profitability, leading to an improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
SSPL undertakes a large debt-funded capital expenditure
programme, leading to weakening in its capital structure, or if
its volumes or margins decline steeply.
About Structural Solutions
Incorporated in 2003 by Mr. Visheswar Rao and Mr. M A Gaffer,
SSPL undertakes distribution of specialised engineering products,
such as simulation chambers, sensors, accelerometers, shakers,
and rate table systems. These products are mainly used in testing
the quality of various electronic systems and are widely used in
research and development and have applications in various
sectors, such as automobiles, aviation, medical,
telecommunications, and defence. SSPL's main office is in
Hyderabad (Andhra Pradesh). Apart from distribution, the company
also offers services, such as maintenance, repairs, and training
to its customers.
SSPL reported a profit after tax (PAT) of INR12 million on net
sales of INR216 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR9 million on net
sales of INR178 million for 2009-10.
WINNER NIPPON: Fitch Raises Rating on INR37.6 Mil. Loan to 'B+'
---------------------------------------------------------------
Fitch Ratings has upgraded India-based Winner Nippon Electronics
Limited's National Long-Term rating to 'Fitch B+(ind)' from
'Fitch B(ind)'. The Outlook is Stable.
The upgrade reflects the significant improvement in WNEL's
financial and credit profiles in the financial year ended March
2011 (FY11). Fitch expects the company to sustain the
improvement through its stable operating profitability in the
near-term.
In FY11, revenue grew by 108.6% yoy to INR517.38m due to improved
capacity utilization backed by a growing number of orders and
high sales realization. Operating margins remained stable at
12.7% (FY10: 12.5%), while net financial leverage (total adjusted
net debt/operating EBITDAR) improved to 4.45x from 9.22x and
gross interest coverage to 3.72x from 2.3x. In H1FY12, the
company clocked revenue of INR382.7m with operating profitability
of 9.9%.
The ratings also draw comfort from WNEL's diversified clientele
and low tax outflow due to fiscal benefits it receives due to its
presence in Baddi, Himachal Pradesh. These fiscal benefits are
expected to continue till FY16.
The ratings are, however, constrained by the company's small size
of operations, high working capital intensity, commoditized
nature of the products and low entry barriers in the industry.
Fitch notes that although the company witnessed high capacity
utilization in its polypropylene (PP) spun bond non-woven cloth
segment of 81.9% in FY11 (FY10: 48.2%), capacity utilization in
polyurethane/polyvinyl chloride (PU/PVC) synthetic leather
segment remained low at 10.3% (4.9%).
Negative rating factors include a decline in WNEL's operating
profitability and/ or any unanticipated debt-led capex and/ or
further stretching of its working capital cycle, resulting in
financial leverage exceeding 6x. Positive rating factors include
a substantial increase in WNEL's revenue growth along with a
sustained improvement in its profitability and financial leverage
falling below 3.5x.
WNEL is a 100% subsidiary of Raglan - a real estate company. The
parent has extended a corporate guarantee of INR275m and
unsecured loans of INR159.7m to WNEL. The latter started its
commercial operations in FY07 to manufacture PP and PU/PVC
synthetic leather. Total production capacity is 4,590 MT/annum
of PP and 6 million metres/annum of PU/PVC synthetic leather.
Rating actions on WNEL's instruments are as follows:
-- Outstanding INR37.6m long-term bank loans: upgraded to
'Fitch B+(ind)' from 'Fitch B(ind)'
-- INR75m fund-based working capital bank limits (enhanced from
INR60m): upgraded to 'Fitch B+(ind)' from 'Fitch B(ind)' and
affirmed at 'Fitch A4(ind)'
-- INR50m non fund-based working capital bank limits (enhanced
from INR37.5m): affirmed at 'Fitch A4(ind)'
=========
J A P A N
=========
MIZUHO FINANCIAL: Fitch Affirm Rating on Pref. Securities at 'BB'
-----------------------------------------------------------------
Fitch Ratings has affirmed Mizuho Financial Group, Inc., and its
subsidiary banks, Mizuho Bank, Ltd, Mizuho Corporate Bank Ltd and
Mizuho Trust and Banking Co., Ltd., at 'A' with Stable Outlook.
The agency has also affirmed all the other ratings of the four
financial institutions.
The Mizuho group's Issuer Default Ratings (IDRs) reflect Fitch's
view that all entities are sufficiently integrated and
systemically important, with an extremely high probability of
receiving state support if required. As the group's Long-term
IDRs are at their Support Rating Floor of 'A', any negative
rating action is most likely to stem from a perceived material
weakening of either the ability or willingness of Japan's
sovereign to provide support. However, as this is not expected
at present, the Outlook remains Stable.
The group's VRs are underpinned by its very strong domestic
franchise, robust liquidity and sound asset quality, but also
take into account the still large (albeit reducing) exposure to
stock investments (37% of Tier 1 capital at end-September 2011)
as well as modest profitability (annualised ROA in H1FYE11:
0.32%) and capitalisation (Fitch core capital ratio in H1FYE11:
6.2%) relative to local and international peers. In affirming
the VRs, Fitch notes the group's modest recovery in non-interest
income generating businesses (1.4% growth yoy in H1FYE11), and
more obvious strengthening of core capitalisation (from a very
low base before common equity raising in 2009 and 2010).
These factors continue to exert upward rating pressure on the
VRs, although prospects for an upgrade in the near term are
clouded by an increasingly uncertain global economic outlook and
how that may further challenge the sustainability of recent
improvements. That said, taking into account Mizuho group's
strong franchise as the second largest banking group in Japan (by
assets), robust liquidity and improved capitalisation, negative
rating action on the VRs appears remote, even taking into account
increasing uncertainties in the operating environment.
Fitch believes that the group's comprehensive restructuring
initiatives should accelerate further reductions in operating
costs by reducing the number of employees and duplication of back
office functions and facilities, including IT support systems,
and these should be largely unaffected by changes in external
factors. However, expected improvement in core earnings through
cross sales of subsidiaries' products and modest recovery in
customer businesses might be increasingly threatened by
deteriorating external factors. As such, Fitch sees greater risk
of unexpected spikes in losses (such as from loan loss charges
and stock investment losses) constraining future growth in
internal core capital generation, but for the group to manage any
challenges without material deterioration in its financial
profile.
Fitch has also affirmed the ratings of Mizuho's Lower Tier II
Subordinated debts and Tier 1 preferred securities. In line with
the agency's current criteria, the Lower Tier II Subordinated
debt instruments are presently rated one notch below Mizuho's
support-driven Long-term IDR, while the Tier 1 preferred
securities are rated two notches below its VR. However, under
proposed revisions of Fitch's criteria, the rating of the hybrid
securities may be lowered. For details, please refer to the
exposure draft of 'Rating Bank Regulatory Capital Securities'
dated 28 July 2011.
The full list of rating actions is as follows:
Mizuho Financial Group, Inc. (Mizuho)
-- Long-term foreign and local currency IDRs affirmed at 'A';
Outlook Stable;
-- Short-term foreign and local currency IDRs affirmed at 'F1';
-- Viability Rating affirmed at 'bbb-';
-- Individual Rating affirmed at 'C/D';
-- Support Rating affirmed at '1';
-- Support Rating Floor affirmed at 'A';
-- Lower Tier II Subordinated debts (Mizuho Financial Group
(Cayman) Limited) affirmed at 'A-'; and
-- Preferred securities (Mizuho Capital Investment (USD) 1
Limited) affirmed at 'BB'.
Mizuho Bank, Ltd (MHBK):
-- Long-term foreign and local currency IDRs affirmed at 'A';
Outlook Stable;
-- Short-term foreign and local currency IDRs affirmed at 'F1';
-- Viability Rating affirmed at 'bbb-';
-- Individual Rating affirmed at 'C/D';
-- Support rating affirmed at '1';
-- Support Rating Floor affirmed at 'A'.
Mizuho Corporate Bank Ltd (MHCB):
-- Long-term foreign and local currency IDRs affirmed at 'A';
Outlook Stable;
-- Short-term foreign and local currency IDRs affirmed at 'F1';
-- Viability Rating affirmed at 'bbb-';
-- Individual Rating affirmed at 'C/D';
-- Support rating affirmed at '1';
-- Support Rating Floor affirmed at 'A';
-- Senior unsecured notes affirmed at 'A'.
Mizuho Trust and Banking Co., Ltd. (MHTB):
-- Long-term foreign and local currency IDRs affirmed at 'A';
Outlook Stable;
-- Short-term foreign and local currency IDRs affirmed at 'F1';
-- Viability Rating affirmed at 'bbb-';
-- Individual Rating affirmed at 'C/D';
-- Support rating affirmed at '1';
-- Support Rating Floor affirmed at 'A'.
* JAPAN: Debt Could Become Unsustainable, IMF Warns
---------------------------------------------------
The Wall Street Journal reports that the International Monetary
Fund warned in a new report that market concerns over fiscal
sustainability could trigger a "sudden spike" in Japanese
government bond yields that could quickly render the nation's
debt unsustainable as well as shake the global economy.
The Journal says the fund's Japan Sustainability Report, released
on Nov. 23, was a signal to Tokyo policy makers that the
international community is already worried about fallouts from
Japan's potential fiscal problems, after debt problems in some
European economies evolved into a Continent-wide crisis.
Japan's public liabilities amount to roughly twice annual
economic output -- a ratio worse than that of any other
industrialized economy, including turmoil-hit Spain and Italy,
reports the Journal. The Japanese government has been slow to
move amid political reluctance to lift taxes, particularly after
the March 11 earthquake, the news agency relates.
A full-text copy of IMF's Japan Sustainability Report is
available at no charge at:
http://ResearchArchives.com/t/s?7757
====================
N E W Z E A L A N D
====================
MASSIVE ACTION: In Liquidation; Creditors Won't Get Repayment
-------------------------------------------------------------
The National Business Review reports that property investment
mentor Dean Letfus has placed his business empire in liquidation
and creditors probably won't see a cent.
Massive Action and NZ Property Gurus Ltd, providing property
investment seminars and advice, were placed into voluntary
liquidation on November 4.
Mr. Letfus, a director and shareholder, also closed the door on
at least five other property investment vehicles this month after
Westpac called in the mortgages.
NBR relates that liquidators Reynolds & Associates, said the
chances unsecured creditors, including Westpac and the Internal
Revenue Department, will see money back are slim.
The liquidators can be reached at:
Reynolds & Associates Ltd
Level One, Arandee Building
108 Rockfield Road, Penrose
Auckland City, Auckland
Tel: (09) 526 0743
Massive Action had no secured creditors, the report discloses.
Assets of NZ$43,000 were mostly goodwill and debts of NZ$85,000
were unable to be paid.
Information about Mr. Leftus on the Massive Action's website said
by 2008 he had amassed a portfolio of more than NZ$20 million in
buy and hold property, according to the report.
NBR adds that NZ Property Gurus, which claims to have bought and
sold more than NZ$1 billion of property and educated thousands of
New Zealand, was wholly-owned by Mr Letfus.
Massive Action is jointly owned by the four directors of trustee
company Vallant Hooker Trustees.
NZ FARMING: Shareholders Approve Olam Loan Extension
----------------------------------------------------
BusinessDay.co.nz reports that minority shareholders in NZ
Farming Systems Uruguay have approved a loan extension that would
otherwise have ground the company's expansion plans to a halt.
BusinessDay.co.nz relates that a unanimous decision was made at a
meeting on November 24 to extend a loan from Singaporean-based
food giant Olam International, which earlier this year gained an
86% stake in the company.
The credit limit available under the Olam loan will increase from
US$85 million (NZ$114 million) to US$110 million, and the term
will be extended by 12 months to become repayable by December 31
next year, the report notes.
NZFSU posted a US$8.7 million loss in the year to June, up from
US$7.9 million the previous year, BusinessDay.co.nz discloses.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 10, 2011, BusinessDay.co.nz cited an independent report
relaying that NZPA shareholders could cause the firm's collapse
if they do not approve an extension of lending by majority
shareholder Olam International. The independent report by Grant
Samuel looks into the merits of extending the loan, according to
BusinessDay.co.nz.
About NZ Farming Systems
NZ Farming Systems Uruguay Limited (NZE:NZS) --
http://www.nzfsu.co.nz/-- is engaged in developing and operating
dairy farming activities in Uruguay. The Company's wholly owned
subsidiaries included Gimley S.A., Gabefox S.A., Lembay S.A.,
Ginok S.A., Gabegim S.A. and Dunkit S.A. NZFSU is listed on the
New Zealand Stock Exchange (NZX).
ZION WILDLIFE: High Court to Decide Who Owns Big Cats
-----------------------------------------------------
APNZ reports that the owner of the big cats at Whangarei's
beleaguered Zion Wildlife Gardens will be decided by the
High Court
The news agency says Lion Man Craig Busch and his mother Patricia
each argue the 37 big cats belong to them, but since the park
went into receivership in August, the High Court has allowed her
to look after the animals.
According to the report, Mrs. Busch's lawyer, Evgeny Orlov, said
her argument was the animals could not be owned or sold by the
park's receivers, PricewaterhouseCoopers, under the Wildlife
Convention.
APNZ relates that Mr. Orlov said a High Court hearing in February
would arguably be the first such case in the country where courts
have been asked to decide on the ownership of wild animals.
"They [the receivers] have held the animals as security over the
park but they can't sell them [under the convention], because
they are wildlife animals," the report quotes Mr. Orlov as
saying.
The case was called for a telephone case conference in the
High Court at Whangarei on Monday, when all parties agreed to a
hearing in February, APNZ notes.
APNZ recalls that a day after the receivers took over the park in
August, Mr. Busch offered to buy back Zion or take the big cats
to another location. But his mother said that was not possible
because of the dispute over their ownership, the report relates.
According to APNZ, Mr. Busch claimed the animals belonged to his
Busch Wildlife Foundation. Mrs. Busch said Zion has the care and
control of the animals.
As reported in the Troubled Company Reporter-Asia Pacific on
July 28, 2011, stuff.co.nz said that Rabobank has called in
receivers from PricewaterhouseCoopers to place Zion Wildlife into
receivership. PWC partner and receiver Colin McCloy --
colin.mccloy@nz.pwc.com -- confirmed the move several hours after
park operator Patricia Busch went public with her concerns that
some of the Northland wildlife reserve's big cat could be "put
down" or relocated, according to stuff.co.nz. Mrs. Busch said
her farm and all of her land had been mortgaged in a bid to save
the park. stuff.co.nz disclosed that Mrs. Busch said that the
park's income had been drastically reduced due to a series of
incidents; including the stopping of wildlife encounters, the
tragic death of big cat handler Dalu Mncube and ongoing
litigation between her son, Craig "Lion Man" Busch, herself and
various companies.
Zion Wildlife Gardens is a famous park in New Zealand.
=================
S I N G A P O R E
=================
ANNISTON PTE: Creditors' Proofs of Debt Due Dec. 27
---------------------------------------------------
Creditors of Anniston Pte Ltd, which is in members' voluntary
liquidation, are required to file their proofs of debt by Dec.
27, 2011, to be included in the company's dividend distribution.
The company's liquidators are:
Bob Yap Cheng Ghee
Tay Puay Cheng
Wong Pheng Cheong Martin
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
CELESTIAL NUTRIFOODS: Court to Hear Wind-Up Petition on Dec. 2
--------------------------------------------------------------
A petition to wind up the operations of Celestial Nutrifoods
Limited will be heard before the High Court of Singapore on
Dec. 2, 2011, at 10:00 a.m.
Bny Corporate Trustee Services Limited filed the petition against
the company on December 24, 2011.
The Petitioner's solicitors are:
Drew & Napier
10 Collyer Quay, #10-01
Ocean Financial Centre
Singapore 049315
ELECTROGLAS PRIVATE: Creditors Get 100% Recovery on Claims
----------------------------------------------------------
Electroglas Private Limited will declare the first and final
dividend on Nov.30, 2011.
The company will pay 100% for preferential and 35.262% for
ordinary claims.
The company's liquidator is:
Yiong Kok Kong
21 Merchant Road
#05-01 Royal Merukh S.E.A. Building
Singapore 058267
HI-LINKS MARITIME: Creditors' Proofs of Debt Due Dec. 27
--------------------------------------------------------
Creditors of Hi-Links Maritime Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Dec. 27, 2011, to be included in the company's dividend
distribution.
The company's liquidators are:
Chee Yoh Chuang
Abuthahir Abdul Gafoor
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
JURONG TECHNOLOGIES: Court Enters Wind-Up Order
-----------------------------------------------
The High Court of Singapore entered an order on Nov. 18, 2011, to
wind up Jurong Technologies Industrial Corpn Ltd's operations.
Tam Chee Chong and Keoy Soo Earn filed the petition against the
company.
The company's liquidators are:
Tam Chee Chong
Andrew Grimmett
C/O Deloitte & Touche LLP
6 Shenton Way
#32-00 DBS Building Tower Two
Singapore 068809
===========
T A I W A N
===========
CHANG HWA BANK: Fitch Affirms Individual Rating at 'C'
------------------------------------------------------
Fitch Ratings has affirmed Chang Hwa Bank's Long-Term Foreign
Currency Issuer Default Rating (LT FC IDR) at 'BBB+' with Stable
Outlook. The agency has also affirmed all of the Taiwanese
bank's other ratings.
The affirmation reflects CHB's stable credit profile over the
past 12 months. The bank's Long-Term and Short-Term Foreign
Currency IDRs as well as its National ratings are based on the
high probability of government support as indicated by its
Support Rating of '2', which factors in its significant market
position (5% market share of deposits) and long legacy of state
ownership.
Meanwhile, CHB's Viability Rating (VR) takes into account the
bank's good franchise in the Taiwanese banking industry, adequate
core capitalisation and satisfactory asset quality and liquidity.
Nevertheless, the rating is constrained by CHB's modest capital
buffer and structurally moderate internal capital generation
compared with international peers.
CHB's profitability recovered strongly from the 2009 trough as
net interest margins widened and loan impairment charges declined
amid the economic recovery post 2008/2009 financial crisis.
Annualised return on average assets (ROAA) in H111 was reported
at 0.75% (2009: 0.22%). Fitch expects the bank's earning
performance to remain favourable in H211 and 2012, underpinned by
its satisfactory asset quality and generally stable Taiwanese
economic outlook.
CHB's asset quality improved substantially in the past decade.
Non-performing loan (NPL) ratio stood at a historical low of
0.45% and loan loss reserve reached a very healthy level,
covering 2.62x of NPLs at end-June 2011. Risk of asset quality
deterioration remains in the bank's concentrated exposure to
property market and high single-name credit exposures to thin-
film transistor-LCD (TFT-LCD) makers. Considering the bank's
conservative loan to value and containable exposures to LCD
makers, Fitch believes that the potential defaults caused by the
market downturn should not be a capital issue for CHB.
CHB has a strong liquidity profile with customer deposits
providing the majority of its funding. The proportion of low-
cost demand deposits compares favorably with the sector average,
indicating the bank's entrenched relationship with retail
depositors. At end-H111, the statutory liquidity ratio was
19.75%, significantly higher than the regulatory requirement of
7%. CHB's capital is adequate and of good quality. Its Tier 1
and capital adequacy ratios were fairly stable throughout 2007-
H111, underpinned by the bank's modest asset growth and profits,
and were 8.1% and 11.4% respectively at end-H111.
Fitch considers a downgrade of CHB's LT FC IDR to be unlikely as
it is at the Support Rating Floor - unless the propensity for
government support has diminished. Upside potential to CHB's IDR
is also remote as it will need a two-notch upgrade to the VR. On
the other hand, any excessive growth and/or further concentration
in riskier exposures due to meeting its policy role to support
government-sponsored industrial development, leading to severe
credit deterioration and weak internal capital generation will
pressure CHB's VR.
CHB's subordinated bonds are rated one notch below CHB's National
Long-term rating of 'AA-(twn)' for its senior debt, and are in
compliance with Fitch's current rating criteria and notching
practice for such performing securities. However, under proposed
revisions of Fitch's criteria, the rating of the subordinated
bonds may be lowered. For details, please refer to the exposure
draft of 'Rating Bank Regulatory Capital Securities' dated 28
July 2011.
CHB was one of the major state-controlled commercial banks in
Taiwan. The bank has strong footholds in large corporate/small
and medium enterprise financing, foreign exchange, trade finance
and residential mortgages. Taishin Financial Holdings Company
('BBB'/Outlook Stable) is CHB's largest shareholder with a 22.55%
stake and appointed the majority of its board of directors.
The detailed list of rating actions is as follows:
-- Long-Term Foreign Currency IDR affirmed at 'BBB+'; Outlook
Stable
-- Short-Term Foreign Currency IDR affirmed at 'F2'
-- National Long-Term rating affirmed at 'AA-(twn)'; Outlook
Stable
-- National Short-Term Rating affirmed at 'F1+(twn)'
-- Viability Rating affirmed at 'bbb'
-- Individual Rating affirmed at 'C'
-- Support Rating affirmed at '2'
-- Support Rating Floor affirmed at 'BBB+'
-- Subordinated debt rating affirmed at 'A+(twn)'
FAR EASTERN AIR: Will Seek Court's OK to End Restructuring
----------------------------------------------------------
The Central News Agency reports that Far Eastern Air Transport
(FAT) plans to file an application with the Taipei District Court
in December to end its financial restructuring plan, the
airline's president Chang Kang-wei said Sunday.
FAT suspended operations and sought bankruptcy protection in
2008. It obtained approval in 2009 from the Taipei District
Court to proceed with a financial restructuring plan.
Mr. Chang told CAN in an interview that the carrier resumed
operations in April this year and is expected to become
profitable by early next year.
If the court agrees to FAT ending its restructuring plan, local
banks will be more willing to provide loans to the airline,
Mr. Chang, as cited by CNA, said.
According the news agency, the company plans to buy Boeing and
Airbus planes to upgrade its existing fleet, most of which are
McDonnell aircraft.
On Oct. 31, CNA discloses, the carrier began offering flights
from Taiwan Taoyuan International Airport to Shijiazhuang in
Hebei Province in China. It is also operating flights from
Songshan Airport in Taipei to Taiyuan in Shanxi Province and
Nanning in Guangxi Zhuang Autonomous Region.
In addition to its cross-strait service, FAT provides regular
flights to Angkor in Cambodia and charters to Cebu in the
Philippines and Da Nang in Vietnam. The carrier also provides
domestic flights to Taiwan's outlying islands of Kinmen and
Penghu.
CNA notes that the carrier had around 10 employees when the court
approved its financial restructuring. Its workforce has now
expanded to more than 600, the report adds.
About Far Eastern
Far Eastern Air Transport Corporation is a Taiwan-based airline
company. It provides both domestic and international passenger
flight services.
===============
T H A I L A N D
===============
UNITED OVERSEAS: Fitch Affirms Individual Rating at 'C'
-------------------------------------------------------
Fitch Ratings has affirmed United Overseas Bank (Thai) Public
Company Limited's Long-term Foreign-Currency IDR (LTFC IDR) at
'BBB+' and National Long-Term Rating at 'AAA(tha)'. The Outlook
is Stable.
UOB Thai's ratings are primarily based on Singapore's United
Overseas Bank (UOB, 'AA-'/Stable) remaining the controlling
shareholder. Given UOB's reputation and resources, Fitch
believes that there would be a high probability of shareholder
support, if required. The National Rating reflects the agency's
view that Thailand's restriction on the foreign ownership limit
at 49% is unlikely to prevent a capitalisation by UOB, if
required, to support its Thai subsidiary.
A negative rating action on the support-driven ratings could
result from a lowering in UOB's shareholding or propensity of
support provided to UOB Thai. Also, UOB Thai's LTFC IDR is
capped by the sovereign's Country Ceiling, hence a change in
Thailand's Country Ceiling would affect the former's rating.
The bank's Viability Rating (VR) takes into consideration its
strong capitalisation. While Fitch believes UOB Thai could
utilise liquidity support, if required from its parent, it
remains self-sufficient. However, the bank's funding profile has
weakened considerably from 2010, as reflected by a rising loan-
to-deposit ratio, due to deposits contraction and an increasing
reliance on non-deposit funds (such as bills of exchange). This
is likely reflective of UOB Thai's moderate franchise, which its
VR has taken into account.
Fitch sees no near-term momentum for a positive rating action on
the VR, though continuous meaningful strengthening of its
franchise without higher risk tolerance, while improving asset
quality and reserves would support its VR. A negative rating
action may occur from a further weakening of its funding profile,
and/or an aggressive asset growth strategy that compromises its
capital position and future asset quality.
The bank's net profit in H111 declined yoy due mainly to a lower
net interest margin, moderate loan growth and higher operating
expenses. As with other domestic peers, in Q411 and 2012, Fitch
expects UOB Thai to see a decline in revenue due to flood relief
programmes provided to affected customers.
UOB Thai maintains a strong capital position with Tier 1 ratio of
16.9% at end-June 2011, although this is down from 19.5% at end-
2009 due to a more aggressive growth strategy; longer term, the
bank targets a Tier 1 ratio of 14%-15%, which Fitch notes would
still be higher than most domestic and international peers.
While asset quality has steadily improved with NPLs declining to
THB7.3bn, or 4.3% of total loans at end-June 2011 (end-2010:
THB8.6bn or 5.3%), it remains weaker than major domestic banks
and UOB's banking subsidiaries in Asia.
UOB Thai's ratings have been affirmed as follows:
-- Long-Term Foreign Currency IDR at 'BBB+'; Stable Outlook;
-- Short-Term Foreign Currency IDR at 'F2';
-- Viability Rating at 'bbb-';
-- Individual Rating at 'C';
-- Support Rating at '2';
-- National Long-term Rating at 'AAA(tha)'; Stable Outlook; and
-- National Short-term Rating at 'F1+(tha)'.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Nov. 22 to Nov. 25, 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 1.33
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
CHINA CENTURY 12.00 09/30/2012 AUD 0.90
DIVERSA LTD 11.00 09/30/2014 AUD 0.03
EXPORT FIN & INS 0.50 12/16/2019 NZD 71.30
EXPORT FIN & INS 0.50 06/15/2020 AUD 69.68
EXPORT FIN & INS 0.50 06/15/2020 NZD 69.37
FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.35
IMF AUSTRALIA 10.25 12/31/2014 AUD 1.72
KIMBERLY METALS 10.00 08/05/2016 AUD 0.37
NEW S WALES TREA 0.50 09/14/2022 AUD 62.45
NEW S WALES TREA 0.50 10/07/2022 AUD 62.28
NEW S WALES TREA 0.50 10/28/2022 AUD 62.12
NEW S WALES TREA 0.50 11/18/2022 AUD 62.18
NEW S WALES TREA 0.50 12/16/2022 AUD 61.95
NEW S WALES TREA 0.50 02/02/2023 AUD 61.74
NEW S WALES TREA 0.50 03/20/2023 AUD 61.38
NEW S WALES TREA 0.50 03/30/2023 AUD 60.97
RESOLUTE MINING 12.00 12/31/2012 AUD 1.82
TREAS CORP VICT 0.50 08/25/2022 AUD 62.90
TREAS CORP VICT 0.50 11/12/2030 AUD 61.33
TREAS CORP VICT 0.50 11/12/2030 AUD 43.72
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 70.07
CQ TEXILE 6.48 01/12/2018 CNY 55.01
HANDAN CITY CON 6.78 07/01/2018 CNY 55.00
HENAN INVEST 4.85 04/15/2019 CNY 71.00
WUHU ECO TECH 4.95 08/25/2017 CNY 52.70
ZJ HISUN PHARMAC 6.50 08/25/2016 CNY 56.00
HONG KONG
---------
CHINA SOUTH CITY 13.50 01/14/2016 USD 66.05
CHINA SOUTH CITY 13.50 01/14/2016 USD 68.50
RESPARCS FUNDING 8.00 12/29/2049 USD 21.62
SINO-OCEAN LAND 10.25 12/31/2049 USD 69.50
SINO-OCEAN LAND 10.25 12/31/2049 USD 71.50
INDIA
-----
INDIA GOVT BOND 6.01 03/25/2028 INR 73.37
PRAKASH IND LTD 5.25 04/30/2015 INR 74.25
PUNJAB INFRA DB 0.40 10/15/2024 INR 26.00
PUNJAB INFRA DB 0.40 10/15/2025 INR 23.44
PUNJAB INFRA DB 0.40 10/15/2026 INR 21.14
PUNJAB INFRA DB 0.40 10/15/2027 INR 19.21
PUNJAB INFRA DB 0.40 10/15/2028 INR 17.50
PUNJAB INFRA DB 0.40 10/15/2029 INR 15.98
PUNJAB INFRA DB 0.40 10/15/2030 INR 14.62
PUNJAB INFRA DB 0.40 10/15/2031 INR 13.40
PUNJAB INFRA DB 0.40 10/15/2032 INR 12.32
PUNJAB INFRA DB 0.40 10/15/2033 INR 11.35
SHIV-VANI OIL 5.00 08/17/2015 USD 70.34
SUZLON ENERGY LT 5.00 04/13/2016 USD 53.64
VIDEOCON INDUS 6.75 12/16/2015 USD 67.44
JAPAN
-----
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 60.88
JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 61.09
TAKEFUJI CORP 9.20 04/15/2011 USD 5.25
TOKYO ELEC POWER 1.43 02/10/2015 JPY 74.62
TOKYO ELEC POWER 1.42 04/27/2015 JPY 73.00
TOKYO ELEC POWER 0.64 04/28/2015 JPY 70.37
TOKYO ELEC POWER 1.11 05/29/2015 JPY 71.75
TOKYO ELEC POWER 1.35 06/15/2015 JPY 74.12
TOKYO ELEC POWER 0.92 07/16/2015 JPY 70.50
TOKYO ELEC POWER 1.36 08/12/2015 JPY 70.50
TOKYO ELEC POWER 1.59 12/28/2015 JPY 73.84
TOKYO ELEC POWER 2.08 05/31/2016 JPY 71.62
TOKYO ELEC POWER 1.97 06/27/2016 JPY 69.75
TOKYO ELEC POWER 2.06 08/31/2016 JPY 70.37
TOKYO ELEC POWER 1.88 09/28/2016 JPY 68.62
TOKYO ELEC POWER 3.45 11/29/2016 JPY 70.62
TOKYO ELEC POWER 1.79 03/14/2017 JPY 65.12
TOKYO ELEC POWER 2.12 03/24/2017 JPY 66.24
TOKYO ELEC POWER 1.73 03/28/2017 JPY 66.25
TOKYO ELEC POWER 1.78 05/31/2017 JPY 64.00
TOKYO ELEC POWER 2.02 07/25/2017 JPY 64.00
TOKYO ELEC POWER 3.22 07/28/2017 JPY 68.00
TOKYO ELEC POWER 1.94 08/28/2017 JPY 63.75
TOKYO ELEC POWER 3.07 09/22/2017 JPY 67.75
TOKYO ELEC POWER 1.84 09/25/2017 JPY 64.12
TOKYO ELEC POWER 1.75 09/28/2017 JPY 63.62
TOKYO ELEC POWER 1.77 11/30/2017 JPY 63.12
TOKYO ELEC POWER 2.77 12/22/2017 JPY 66.75
TOKYO ELEC POWER 1.67 01/29/2018 JPY 62.62
TOKYO ELEC POWER 2.90 03/23/2018 JPY 66.37
TOKYO ELEC POWER 1.67 03/28/2018 JPY 62.50
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 4.00
DORCHESTER PACIF 5.00 06/30/2013 NZD 71.30
INFRATIL LTD 8.50 09/15/2013 NZD 7.75
INFRATIL LTD 8.50 11/15/2015 NZD 8.65
INFRATIL LTD 4.97 12/29/2049 NZD 52.00
KIWI INCOME PROP 8.95 12/20/2014 NZD 1.01
NEW ZEALAND POST 7.50 11/15/2039 NZD 63.34
NZF GROUP 6.00 03/15/2016 NZD 11.75
TOWER CAPITAL 8.50 04/15/2014 NZD 1.02
TRUSTPOWER LTD 8.50 09/15/2012 NZD 7.20
TRUSTPOWER LTD 8.50 03/15/2014 NZD 5.70
UNI OF CANTERBUR 7.25 12/15/2019 NZD 1.01
SINGAPORE
---------
BAKRIE TELECOM 11.50 05/07/2015 USD 61.37
BAKRIE TELECOM 11.50 05/07/2015 USD 61.32
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 40.25
F&N TREASURY PTE 2.48 03/28/2016 SGD 0.99
F&N TREASURY PTE 3.15 03/28/2018 SGD 0.99
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
YANLORD LAND GRP 10.62 03/29/2018 USD 74.57
YANLORD LAND GRP 10.62 02/27/2015 USD 74.35
SOUTH KOREA
-----------
CN 1ST ABS 8.00 02/27/2015 KRW 31.68
CN 1ST ABS 8.30 11/27/2015 KRW 32.91
EX-IMP BK KOREA 0.50 10/23/2017 KRW 60.56
EX-IMP BK KOREA 0.50 12/22/2017 KRW 59.48
GREAT KD 1ST ABS 15.00 08/19/2014 KRW 30.52
HYUNDAI SWISS BK 7.90 07/23/2015 KRW 59.63
IBK 17TH ABS 25.00 12/29/2012 KRW 62.45
KOREA MUTUAL SAV 8.00 12/17/2015 KRW 59.83
YOUNGNAM SAVINGS 8.00 04/28/2016 KRW 59.59
SRI LANKA
---------
SRI LANKA GOVT 6.20 08/01/2020 LKR 70.71
SRI LANKA GOVT 7.00 10/01/2023 LKR 69.28
SRI LANKA GOVT 5.35 03/01/2026 LKR 58.43
*********
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 ***