/raid1/www/Hosts/bankrupt/TCRAP_Public/111223.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
Friday, December 23, 2011, Vol. 14, No. 254
Headlines
A U S T R A L I A
BENDIGO AND ADELAIDE: Moody's Affirms Prime-1 Ratings
DIGISLIDE: In Administration, Angers Creditors
STORM FINANCIAL: ASIC Accepts Enforceable Undertakings
* Sydney Passenger Train Venture on Review for Downgrade
C H I N A
CHINA TEL GROUP: To Acquire Serbian Broadband Operator Verat
* Firms Fill Lending Gap for Cash-Strapped Companies
H O N G K O N G
COMTECH ENGINEERING: Creditors Get 100% Recovery on Claims
CREATION & DECORATION: Court Enters Wind-Up Order
DRESSEL INVESTMENT: Court Enters Wind-Up Order
EUROTEK METAL: Court Enters Wind-Up Order
FRIGAID HK: Wong and Chen Step Down as Liquidators
FUTURE BEST: Court Enters Wind-Up Order
GAIN PROFIT: Court Enters Wind-Up Order
GOLD EXPERT: Court Enters Wind-Up Order
GO-TECH FIRE: Court Enters Wind-Up Order
GREAT LUCK: Court Enters Wind-Up Order
GREEN DEPOT: Court Enters Wind-Up Order
HARMONY DESIGN: Court Enters Wind-Up Order
HIGH CARGO: Court Enters Wind-Up Order
HK PAK: Court Enters Wind-Up Order
KAM KIN: Court Enters Wind-Up Order
KIN WAI: Court Enters Wind-Up Order
KING DRAGON: Court Enters Wind-Up Order
KONG FAI: Court Enters Wind-Up Order
KUEN KEE: Court Enters Wind-Up Order
KWAI CHUEN: Court Enters Wind-Up Order
I N D I A
AGIO PAPER: Fitch Junks Rating on Three Loan Classes
AHUJA GLOBAL: ICRA Assigns 'ICRA]BB-' Rating to INR18cr Bank Loan
ARUNA ALLOY: Fitch Affirms Low-B Ratings on Two Loans
GOPAL OIL: ICRA Reaffirms '[ICRA]BB-' Rating to INR0.76cr Loan
HEMA ENGINEERING: Fitch Assigns Low-B Ratings on Two Notes
MADHUVAN COTTON: ICRA Assigns 'ICRA]B' Rating to INR5cr Cash Loan
OM STEEL: Fitch Assigns 'B' Rating on INR300 Million Loan
RAJHANS ENTERPRISES: ICRA Cuts Rating on INR6.25cr Loan to 'BB'
RAMKUMAR TEXTILE: ICRA Assigns 'ICRA]B+' Rating to INR8.54cr Loan
ROOP TECHNOLOGY: ICRA Assigns '[ICRA]B+' Rating to INR7cr Loan
SHARE MICROFIN: ICRA Cuts Rating on INR384cr Loan to '[ICRA] D'
SOGO COMPUTERS: ICRA Places '[ICRA]C' Rating on INR23cr Bank Loan
TERRAM GEOSYNTHETICS: ICRA Cuts Rating on INR40.25cr Loan to 'D'
UNIGLOBE MOD: ICRA Assigns '[ICRA]BB' Rating to INR6.95cr Loan
* INDIA: Moody's Revises FCBDC to Baa3/P-3 From Ba1/Not Prime
I N D O N E S I A
MERPATI NUSANTARA: Garuda Hopes to Get IDR225-Bil. Debt Payment
J A P A N
OLYMPUS CORP: Prosecutors Raid Offices, Homes Amid Cover-up Probe
OLYMPUS CORP: May Liquidate Three Unlisted Units
OLYMPUS CORP: Hires SMBC Nikko, Citigroup to Help Raise Capital
M O N G O L I A
GOLOMT BANK: S&P Affirms 'B+/B' Issuer Credit Ratings
N E W Z E A L A N D
CBD CONSTRUCTION: Judge Rejects Insolvency Payback Bid
OXFORD FINANCE: S&P Withdraws 'BB/B' Counterparty Credit Ratings
SOUTH CANTERBURY: Southbury Firms Unlikely to Fully Pay SCF Debt
S I N G A P O R E
PACIFIC INTERNATIONAL: Moody's Withdraws 'B1' CFR
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
- - - - -
=================
A U S T R A L I A
=================
BENDIGO AND ADELAIDE: Moody's Affirms Prime-1 Ratings
-----------------------------------------------------
Moody's Investors Service affirmed the A2 / Prime-1 ratings of
Bendigo and Adelaide Bank Limited, following its announcement last
Friday that it intends to acquire Bank of Cyprus Australia
Limited.
Ratings Rationale
"Bendigo and Adelaide Bank's proposed acquisition of Bank of
Cyprus Australia will not fundamentally change its risk profile,
and as such Moody's has affirmed the bank's A2 / Prime-1 ratings
with a stable outlook" says Marina Ip, an assistant vice president
and analyst at Moody's Sydney office.
"The size of the acquisition is small and Bendigo and Adelaide
Bank's recent capital raising, lifting the bank's Tier 1 Ratio
from 7.85% at FY2011 to an expected 8.24% post acquisition, will
fund the purchase price and repay Bank of Cyprus Australia's
related-party subordinated debt" Ms. Ip explains.
"That said", comments Ms. Ip, "there are some developments which
we will be monitoring closely". They include the ability of
Bendigo and Adelaide Bank to:
[1] repay Bank of Cyprus Australia's related-party customer
deposits (AUD423 million at FY2010), through growth in customer
deposits and from utilizing Bank of Cyprus Australia surplus
liquid assets
[2] manage down Bank of Cyprus Australia's large exposures, with 9
loans totalling AUD249 million (274% of Bank of Cyprus Australia's
Tier 1 Capital at FY2010, or 12% of Bendigo and Adelaide Bank's
Tier 1 Capital at FY2011, pre-acquisition)
[3] achieve cost efficiencies to improve overall risk-adjusted
profitability: Bank of Cyprus Australia has weaker risk-adjusted
profitability than Bendigo and Adelaide Bank due to its low net
fee & commission income
The Transaction
Bendigo and Adelaide Bank Limited, AUD54.9billion in total assets
at June 2011, has offered to acquire Bank of Cyprus Australia
Limited, AUD1.7billion in total assets at December 2010, from the
Bank of Cyprus Public Company Limited (Ba2 / Not-Prime)
In December 2011, Bendigo and Adelaide Bank raised equity share
capital of AUD150 million from institutional investors, and has
proposed to raise AUD70million from retail investors in
February 2012.
The acquisition, which is expected to be completed by end February
2012, remains subject to regulatory approvals for both parties and
a material adverse change condition. Further terms and conditions
of the sale are to be negotiated in good faith and are subject to
approval by both the Board of Bendigo and Adelaide Bank Limited
and the Bank of Cyprus Group.
Should the transaction not proceed, Bendigo and Adelaide Bank
intends to retain the recently raised capital to strengthen its
balance sheet and support future growth.
Current Ratings
Bendigo and Adelaide Bank is currently assigned a long-term senior
unsecured debt rating of A2, short-term rating of Prime-1 and
stand-alone Bank Financial Strength Rating (BFSR) of C, which maps
to A3 on the long-term rating scale.
The BFSR addresses the stand-alone credit profile of the bank, and
does not incorporate the potential for systemic support, which is
included in the bank's A2 senior unsecured debt ratings. All
ratings carry a stable outlook.
Moody's does not currently rate Bank of Cyprus Australia Limited.
The methodologies used in this rating were Bank Financial Strength
Ratings: Global Methodology published in February 2007, and
Incorporation of Joint-Default Analysis into Moody's Bank Ratings:
A Refined Methodology published in March 2007.
Bendigo and Adelaide Bank Limited is headquartered in Bendigo,
Victoria, Australia. It reported assets of AUD54.9billion
(approximately US$51.2billion) at FY2011, for the year ending 30
June 2011.
DIGISLIDE: In Administration, Angers Creditors
----------------------------------------------
Russell Emmerson at AdelaideNow reports that Digislide sank into
administration rather than agree to give an angered creditor
security over the company's assets.
Sydney-based Multi-Vendor Support Services invested AU$500,000 in
convertible notes in September and October last year but lost
patience with Digislide when the company failed to repay the
amounts including interest at 15% when they fell due this year,
according to AdelaideNow.
The report notes that Digislide's market announcements referred to
"ongoing negotiations" to extend the debt but did not reveal until
the market had been closed that MVSS had served the company with
two statutory demands.
AdelaideNow notes that MVSS Managing Director Mal Fraser-Clay said
that he offered to extend his debt if he was allowed security over
the company's assets a move rejected by the board, which then
placed the company into administration.
Administrators Peter Macks and Tim Clifton of PPB Advisory were
appointed by directors and are likely to come under pressure from
conflicting camps, the report says.
AdelaideNow discloses that creditors are dominated by director-
related entities, many of which kept the company afloat as its
promised sales and distribution channels either dried up or failed
to eventuate. The report relates that these same companies were
responsible for 70 per cent of the company's sales last financial
year.
But there are also a significant number of angry creditors and
investors who will ask questions of the board's standards of
corporate governance and lack of disclosure, the report notes.
AdelaideNow says that it has had three other statutory demands
served against it and last year called in a liquidator to review
the company's accounts but the board dominated by Chief Executive
Luceille Outhred did not tell the market until after matters were
reported by The Advertiser.
Administrator Peter Macks of PPB said the firm was assessing the
company's finances including promises of more refinancing with its
sponsoring broker Martin Place Securities ahead of an early
January creditors meeting, the report adds.
Digislide is a technology company in ADELAIDE.
STORM FINANCIAL: ASIC Accepts Enforceable Undertakings
------------------------------------------------------
The Australian Securities and Investments Commission on
December 22 accepted enforceable undertakings (EUs) from three
financial advisers formerly employed by Storm Financial Ltd.
The three financial advisers are Ms. Carey Fraser of North Ward,
Queensland, Mr. Trevor Alan Benson of Aspley, Queensland and
Mr. David Robert McCulloch of Mount Louisa, Queensland.
The EUs were offered following ASIC's concern and subsequent
investigation that in advising clients to adopt the Storm model of
investment, Ms. Fraser, Mr. Benson and Mr. McCulloch only advised
clients to invest in accordance with the Storm model of investment
and without considering whether any other strategy would meet
their needs. ASIC was also concerned that their advice involved
the implementation of a gearing strategy and they failed to advise
clients that the advice provided to them was not necessarily
appropriate or tailored to meet their financial goals and
objectives.
Ms Fraser has undertaken not to participate in the financial
services industry for a period of two years and to inform ASIC if
she obtains employment in the financial services industry within
the period of a further two years following the expiry of the
suspension period.
Mr. Benson and Mr. McCulloch have undertaken to complete specified
professional education within six months and to submit to a regime
of supervision, review and audit of their financial services
provided to retail clients by an independent senior financial
planner (approved by ASIC) for a period of two years.
About Storm Financial
Storm Financial Limited -- http://www.stormfinancial.com.au/--
operated in the Australian wealth management industry. The
company managed over one trillion dollars in investment fund
assets for over nine million investors, distributed through
investment administration providers and financial adviser. The
funds were invested through different investment products and
structures, including superannuation, non-superannuation managed
funds and life insurance products. Non-superannuation managed
funds, which form the majority of Storm's products, total
approximately 26.5% of total investment fund assets in Australia,
as of June 30, 2007.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 14, 2009, Storm Financial Ltd. appointed Worrells Solvency &
Forensic Accountants as voluntary administrators after the
Commonwealth Bank of Australia demanded debt repayment of around
AU$20 million.
Storm later closed its business and fired all of its 115 staff.
The closure, the company's administrators said, was due to the
significant reduction in Storm's income resulting in trading
losses being incurred "at a rate which the company could no longer
absorb."
The TCR-AP reported on Jan. 22, 2009, that the CBA, Storm's
largest creditor, lodged a AUD27.09 million debt claim at a first
meeting of the company's creditors on Jan. 20, 2010. The group's
remaining creditors are owed AUD51 million, plus a provision for
dividends of AUD10 million.
In March 2009, the Australian Securities and Investments
Commission won its bid to liquidate Storm Financial after the
Federal Court ruled that the Company be wound up. Federal court
Justice John Logan appointed Ivor Worrell --
ivor.worrell@worrells.net.au -- and Raj Khatri --
raj.khatri@worrells.net.au -- of Worrells Solvency and Forensic
Accountants as liquidators for the Company.
* Sydney Passenger Train Venture on Review for Downgrade
--------------------------------------------------------
Dow Jones' DBR Small Cap reports that a consortium building
passenger trains for Sydney's metropolitan and suburban rail
network suffered another blow after its already fragile credit
rating was put on notice.
=========
C H I N A
=========
CHINA TEL GROUP: To Acquire Serbian Broadband Operator Verat
------------------------------------------------------------
U.S.-based VelaTel Global Communications, formerly known as China
Tel Group, Inc., entered into a Business Cooperation Agreement
with the shareholders of Cyprus holding company Kerseyco Trading
Limited to acquire at least a 51% controlling interest in Kerseyco
and its Serbian operating subsidiary, VeratNet d.o.o. The
transaction is expected to close in February 2012, in order to
allow sufficient time for VelaTel's auditors to conduct the work
needed to report the financial results of Kerseyco and its
subsidiary on VelaTel's consolidated financial statements going
forward.
Verat is one of the leading telecommunications operator and
internet service providers in Serbia, offering a full range of
telecommunication services, including ADSL broadband service
nationwide and wireless broadband access (WBA) in three cities
where it holds radio frequency licenses, including Belgrade,
Serbia's capital and largest city. Verat also offers specialty
services to business customers, such as international private
leased circuit services, dedicated wireless internet lines, and
dedicated web server hosting. Verat currently owns a data center,
a network core, and 11 base transceiver stations (BTS). Verat has
more than 50 employees who serve more than 10,000 subscribers.
In exchange for its 51% equity stake, VelaTel will contribute
CAPEX and OPEX necessary to continue Verat's existing operations
and to upgrade Verat's existing WBA infrastructure equipment with
higher capacity equipment, which will more than double the
subscriber capacity of Verat's WBA network and allow Verat to add
new wireless customers. The equipment, which has been already
manufactured by ZTE, will be part of the existing strategic
agreement that VelaTel has in place with ZTE. Based on an
estimated equipment delivery date during March 2012, VelaTel
expects to complete the deployment of the new equipment during the
summer of 2012. VelaTel very recently acquired companies with WBA
assets in the neighboring Balkan countries of Croatia and
Montenegro, and plans to deploy all three markets simultaneously,
which VelaTel projects will result in significant expense savings
and strategic synergies.
Under the parties' agreement, VelaTel has the opportunity to
expand its equity stake from 51% to 75% in exchange for a further
expansion of the WBA network to at least 50 BTS. The potential
network expansion may occur as a result of subscriber growth
within Verat's existing license territory, or if Verat is awarded
WBA licenses covering additional geographic regions in Serbia.
A full-text copy of the Standby Business Agreement is available
for free at http://is.gd/UvhHp2
About China Tel
Based in San Diego, California, and Shenzhen, China, China Tel
Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/--
provides high speed wireless broadband and telecommunications
infrastructure engineering and construction services. Through its
controlled subsidiaries, the Company provides fixed telephony,
conventional long distance, high-speed wireless broadband and
telecommunications infrastructure engineering and construction
services. ChinaTel is presently building, operating and deploying
networks in Asia and South America: a 3.5GHz wireless broadband
system in 29 cities across the People's Republic of China with and
for CECT-Chinacomm Communications Co., Ltd., a PRC company that
holds a license to build the high speed wireless broadband system;
and a 2.5GHz wireless broadband system in cities across Peru with
and for Perusat, S.A., a Peruvian company that holds a license to
build high speed wireless broadband systems.
Since the Company's inception until June 30, 2011, it has incurred
accumulated losses of approximately $242.36 million. The Company
expects to continue to incur net losses for the foreseeable
future.
The Company's independent accountants have expressed substantial
doubt about the Company's ability to continue as a going concern
in their audit report, dated April 15, 2011, for the period ended
Dec. 31, 2010. As reported by the TCR on April 21, 2011, Mendoza
Berger & Company, LLP, in Irvine, California, expressed
substantial doubt about the Company's ability to continue as a
going concern, following the 2010 financial results. The
independent auditors noted that the Company has incurred a net
loss of $56,041,182 for the year ended Dec. 31, 2009, cumulative
losses of $165,361,145 since inception, a negative working capital
of $68,760,057, and a stockholders' deficit of $63,213,793.
The Company reported a net loss of $66,623,130 on $955,311 of
revenue for the year ended Dec. 31, 2010, compared with a net loss
of $56,065,029 on $657,876 of revenue during the prior year.
The Company also reported a net loss of $17.97 million on $488,476
of revenue for the nine months ended Sept. 30, 2011, compared with
a net loss of $38.22 million on $729,701 of revenue for the same
period a year ago.
The Company's balance sheet at Sept. 30, 2011, showed $11.57
million in total assets, $22.22 million in total liabilities and a
$10.64 million total stockholders' deficit.
* Firms Fill Lending Gap for Cash-Strapped Companies
----------------------------------------------------
Dow Jones' DBR Small Cap reports that Chinese companies ranging
from pharmaceutical makers to shipbuilders are making big bets on
a potentially lucrative business: lending money to cash-strapped
companies.
================
H O N G K O N G
================
COMTECH ENGINEERING: Creditors Get 100% Recovery on Claims
----------------------------------------------------------
Comtech Engineering and Consultant Company Limited, which is in
creditors' voluntary liquidation, will declare dividend to its
creditors on Jan. 13, 2012.
The company will pay 100% for preferential and 7.43% for ordinary
claims.
The company's liquidators are:
Fung Wing Yuen
Pang Ho Choi Robin
1/F & 2/F, Xiu Ping
Commercial Building
104 Jervois Street
Sheung Wan, Hong Kong
CREATION & DECORATION: Court Enters Wind-Up Order
-------------------------------------------------
The High Court of Hong Kong entered an order on July 4, 2011, to
wind up the operations of Creation & Decoration Manufacturing
Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
DRESSEL INVESTMENT: Court Enters Wind-Up Order
----------------------------------------------
The High Court of Hong Kong entered an order on March 22, 2009, to
wind up the operations of Dressel Investment Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
EUROTEK METAL: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on Oct. 27, 2010, to
wind up the operations of Eurotek Metal Company Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
FRIGAID HK: Wong and Chen Step Down as Liquidators
--------------------------------------------------
Wong Tak Man Stephen and Chen Yung Ngai Kenneth stepped down as
liquidators of Frigaid HK & Traders Limited on Dec. 1, 2011.
FUTURE BEST: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on Oct. 2, 2009, to
wind up the operations of Future Best Building & Engineering
Company Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
GAIN PROFIT: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on May 17, 2011, to
wind up the operations of Gain Profit (HK) Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
GOLD EXPERT: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on March 23, 2009, to
wind up the operations of Gold Expert Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
GO-TECH FIRE: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order on Oct. 7, 2009, to
wind up the operations of Go-Tech Fire Protection Co Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
GREAT LUCK: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on April 8, 2009, to
wind up the operations of Great Luck International Trading
Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
GREEN DEPOT: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on Oct. 14, 2011, to
wind up the operations of The Green Depot Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
HARMONY DESIGN: Court Enters Wind-Up Order
------------------------------------------
The High Court of Hong Kong entered an order on Sept. 8, 2011, to
wind up the operations of Harmony Design Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
HIGH CARGO: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on Dec. 13, 2010, to
wind up the operations of High Cargo Logistics Warehouse Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
HK PAK: Court Enters Wind-Up Order
----------------------------------
The High Court of Hong Kong entered an order on Dec. 1, 2011, to
wind up the operations of Hong Kong Pak Tat Trading Co.
The acting official receiver is Lee Mei Yee May.
KAM KIN: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on Oct. 7, 2009, to
wind up the operations of Kam Kin Engineering Services Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
KIN WAI: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on April 11, 2011, to
wind up the operations of Kin Wai Poly Bag Printing Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
KING DRAGON: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on Dec. 24, 2009, to
wind up the operations of King Dragon Engineering Building
Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
KONG FAI: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on Nov. 5, 2010, to
wind up the operations of Kong Fai Construction & Transportation
Company Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
KUEN KEE: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on March 23, 2009, to
wind up the operations of Kuen Kee Kwok Wing (HK) Transportation
and Stevedores Co Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
KWAI CHUEN: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on April 2, 2009, to
wind up the operations of Kwai Chuen Container Service Company
Limited.
The company's liquidator is:
Huen Ho Yin
Huen & Partners
The whole of 22nd Floor
9 Des Voeux Road West
Hong Kong
=========
I N D I A
=========
AGIO PAPER: Fitch Junks Rating on Three Loan Classes
----------------------------------------------------
Fitch Ratings has assigned India's Agio Paper & Industries Limited
a National Long-Term Rating of 'Fitch C(ind)'.
The ratings reflect restructuring of APIL's debt in March 2011 and
the postponement of its debt obligations until H2FY13 (end-
September 2012). This is a result of the closure of the company's
writing and printing paper manufacturing plant by the Central
Pollution Control Board in October 2010.
In FY11, APIL's revenue declined significantly to INR146m from
INR232.7m in FY10 with EBITDA loss increasing to INR36.1m from -
INR16m. Its total adjusted debt declined to INR297.7m in FY11 from
INR445.4m in FY10, while free cash flow (FCF) improved to negative
INR71.1m from negative INR121.7m. Fitch expects FCF to remain
negative in FY12 mainly due to significant operating losses
expected during the year.
Positive rating guidelines include timely recommencement of
operations along with stable plant operations for at least one
quarter. Negative rating guidelines include delays in
recommencement of operations which may lead to another round of
restructuring of bank loans.
APIL is a Kolkata-based writing and printing paper manufacturing
company. The company has an installed capacity of 15,500 tonnes
per annum (TPA) in Bilaspur (Chattisgarh). APIL has also set up
additional capacity of 18,000 TPA and 4 mega watt of captive power
plant to save on power cost; however it is yet to be
commercialized.
Fitch has also assigned ratings to APIL's bank facilities as
follows:
-- INR165m term loans: 'Fitch C(ind)'
-- INR90m working capital term loans: 'Fitch C(ind)'
-- INR52.5m funded interest term loans: 'Fitch C(ind)'
-- INR1m non-fund based limits: 'Fitch A4(ind)'
AHUJA GLOBAL: ICRA Assigns 'ICRA]BB-' Rating to INR18cr Bank Loan
-----------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]BB-' to the
INR18.00 crore fund based bank limits of Ahuja Global (India)
Limited. The outlook on the long term rating is stable.
The rating reflects AGIL's limited value additive nature of the
business and highly competitive nature of the industry which
exerts pressure on operating margins, along with a weak financial
profile, reflected by a highly leveraged capital structure and
consequently weak coverage indicators.
The rating also takes into account the fragmentation in the cotton
ginning industry which together with the susceptibility of the
cotton prices to seasonality and regulatory risks further subdues
the profit margins. However, the rating favorably considers the
location advantages resulting in fiscal benefits as well as easy
accessibility to raw material sources. ICRA also notes the long
standing experience of the promoters in the ginning industry and
the company's forward integration into oil extraction activities.
About Ahuja Global
The group started operations with Mr. Gurcharan Singh Ahuja
opening a wholesale general merchant store in Kotkapura, Ludhiana
in 1961. In 1973, a departmental store was set up and the business
was handed over to his two sons namely Mr. Devinder Ahuja and Mr.
Harinder Ahuja. Over time, the promoters also established cotton
factories - M/s Maya Cotton and General Mills in 1996, Gee Ess
Ahuja Cotton and General Mills in 1997 and Ahuja cotton Company in
1999. Then in 2002, the entire business of the above said
companies was transferred to Ahuja Global India Limited. AGIL
primarily deals in ginning of cotton and sorting of rice with its
facilities situated in Kotkapura, Ludhiana.
Recent Results
During the financial year 2010-11, the company reported a profit
after tax (PAT) of INR0.56 crore on an operating income of
INR134.85 crore as against PAT of INR0.10 crore on an operating
income of INR72.46 crore in 2009-10.
ARUNA ALLOY: Fitch Affirms Low-B Ratings on Two Loans
-----------------------------------------------------
Fitch Ratings has affirmed India-based Aruna Alloy Steels Private
Ltd's National Long-Term Rating at 'Fitch BB+(ind)'. The Outlook
is Stable.
The ratings continue to reflect the slow and steady improvement in
Aruna's capacity utilizations to 32.3% in FY11 (end-March) from
28.6% on FY10, which is partly responsible for the improvement in
its return on capital employed to 17.8% from 15.9%. However, the
capacity utilization remains constrained by the power shortage
issues in Tamil Nadu. Financial leverage has also been
comfortable at 1.9x in FY11 (FY10: 1.72x). The ratings continue
to be supported by Aruna's strong and stable operating EBITDA
margins in the alloy segment, ranging between 13.9% and 15.3% over
FY09-FY11.
The ratings continue to reflect the company's high working
requirements resulting in a longer cash conversion cycle of 101.3
days in FY11 (FY10: 59.3 days). The ratings are moderated by the
customer concentration risks, with Aruna's 10 major customers
accounting for 89.1% of its total FY11 revenues (FY10: 83%). The
ratings are also moderated by the potential impact of foreign
exchange fluctuation on the company's overall profitability.
Negative rating guidelines include a decrease in Aruna's capacity
utilisation levels to below 25% and an increase in its debt/EBITDA
to above 3.5x. Positive rating guidelines include an improvement
in the company's capacity utilisation levels to above 40% and a
decrease in its debt/EBITDA to below 1.2x.
Incorporated in 1961, Aruna is a Madurai-based steel and alloy
castings manufacturer. It owns three manufacturing facilities in
Madurai with a total capacity of 10,800 metric tones per annum.
The company operates three windmills with a combined capacity of
2.6MW. In FY11, the company reported an operating income of
INR701.7m (FY10: INR564.9m), an operating EBITDA of INR124.2m
(INR87.3m) and total debt outstanding of INR236.1m (INR198m).
Aruna's facilities have been affirmed as follows:
-- INR90 mil. fund-based working capital limits: 'Fitch BB+
(ind)/Fitch A4+(ind)'
-- INR1 mil. non-fund based working capital limits:
'Fitch A4+(ind)'
-- INR13.9 mil. long-term loans: 'Fitch BB+(ind)'
GOPAL OIL: ICRA Reaffirms '[ICRA]BB-' Rating to INR0.76cr Loan
--------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB-' rating assigned to the
INR0.76 crore term loans and the INR5.50 crore fund based
facilities of Gopal Oil Industries. ICRA has also reaffirmed the
short term rating of '[ICRA]A4' assigned to the INR3.00 crore fund
based bank limits of GOI. The outlook on the long term ratings is
stable.
The rating reaffirmation reflects the inherently low profit
margins, the high competitive intensity and fragmentation in the
edible oils industry; volatility in the global edible oil prices
and sensitivity of its profits to the import duty differential;
threat of substitution from cheaper edible oils; large proportion
of sales being derived from low margin trading operations and the
firm's weak financial profile as reflected in its high gearing
levels. However, ICRA takes note of the considerable experience of
the proprietor in the edible oils business; location advantage
arising from its presence in the oil seed growing belt and
favorable demand outlook with India being traditionally deficit in
edible oil.
About Gopal Oil
Gopal Oil Industries is a proprietorship concern and was
incorporated in 1990. The firm started operations with two oil
expellers at Pandhurna in the state of Madhya Pradesh. The
manufacturing operations were expanded over the years and the firm
has 18 oil expellers currently, a caustic wash section and a
groundnut shelling plant. The firm got its cotton seed cake brand
"Surbhi Shri" registered in 2008. The proprietor Mr. Gopal
Hukumchand Paliwal hails from a family of traders and his family
has been in the oil and pulses trading business since 1965. The
product mix of the firm constitutes cotton seed oil, cotton seed
cake and groundnut. The firm also trades in commodities such as
soya bean seed, cottonseed, wheat etc.
Recent Results:
In 2010-11, the firm reported a net profit of INR0.12 crore on net
sales of INR31.45 crore as against a net profit of INR0.21 crore
on net sales of INR31.00 crores in 2009-10.
HEMA ENGINEERING: Fitch Assigns Low-B Ratings on Two Notes
----------------------------------------------------------
Fitch Ratings has assigned India's Hema Engineering Industries
Limited (HEIL) a National Long-Term rating of 'Fitch BB(ind)' with
Stable Outlook.
The ratings reflect HEIL's high working capital intensity which
coupled with its low profitability results in moderate-to-high
financial leverage. The ratings further reflect the company's
high dependence on its top two customers that accounted for about
83% of its revenue in FY11 (end-March).
The ratings are, however, supported by HEIL's consistent revenue
growth over FY07-FY11 along with an established track record of
working with reputed clients. It has joint ventures with
international auto suppliers, which add to its revenue and
profitability. The ratings further draw comfort from HEIL's
presence in all domestic auto hubs - National Capital Region, Pune
(Maharashtra) and Hosur (Tamil Nadu), which provides access to
various auto original equipment manufacturers (OEMs). Fitch notes
that HEIL is exposed to the domestic two-wheeler industry which
until now has shown resilience despite the slowdown in the auto
industry.
In FY11, HEIL's revenue grew by 43.9% yoy to INR5,123m due to an
increase in orders from Hero Motocorp for existing and new
products. EBITDA margins declined marginally to 6.9% from 7.4%.
At end-FY11, its total debt increased to INR1,850.64 million from
INR1,658.48 million due mainly to increased working-capital
requirements and moderate capex of INR453.5 million in FY11.
Financial leverage (total adjusted net debt/EBITDA) however,
improved to 5.2x from 6x due to a decrease in off-balance sheet
debt. Fitch notes that HEIL has withdrawn the corporate guarantee
furnished on behalf of its subsidiary after the full payment of
the latter's debt. Cash and bank balance was INR18.9 million in
FY11 (FY10: INR67.75 million).
Cash flow from operations and free cash flow were negative for
FY10 and FY11. Net cash conversion cycle has consistently
increased to 53 days in FY11 (FY08: 37 days) due to a consistent
decrease in payable days.
Negative rating action may result from sustained low profitability
and/or debt-led capex leading to sustained deterioration in
financial leverage to above 6.5x. A significant improvement in
profitability leading to a sustained reduction in financial
leverage to below 5x would be positive for the ratings.
HEIL manufactures auto components (sheet metal and tubular
fabricated components) for two wheelers OEM and cabinets for
personal computers. The company also provides all types of
surface treatment solutions like electroplating, powder coating,
liquid and heat resistance painting.
Fitch has also assigned ratings to HEIL's bank facilities as
follows:
-- INR500 million Long-term bank loan: 'Fitch BB(ind)'
-- INR1,230 million Fund-based working capital limits:
'Fitch BB(ind)'/'Fitch A4+(ind)'
-- INR60 million Non-fund based working capital limits:
'Fitch A4+ (ind)'
MADHUVAN COTTON: ICRA Assigns 'ICRA]B' Rating to INR5cr Cash Loan
-----------------------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to INR5.00 crore cash credit
facility of Madhuvan Cotton Private Limited.
The assigned rating is constrained by MCPL's weak financial
profile as reflected by thin profitability due to inherently low
value addition in the ginning business as stretched liquidity
position given the high inventories, adverse capital structure and
weak debt coverage indicators. The rating also take into account
the vulnerability of profitability to fluctuations in raw material
prices which are subject to seasonality and any changes in the
regulatory policies. The company's modest scale of operations
along with the fragmented nature of the industry further exerts
pressure on margins.
The rating, however, positively considers the company's favorable
location giving it easy access to high quality raw cotton as well
as established track record of the company with extensive
experience of promoters in cotton industry.
Madhuvan Cotton Private Limited was incorporated in 2003 by
Mr. Shashikant R Mehta, Managing director, and other 3 other
family members as shareholders. It had set up a unit for cotton
ginning and pressing at Savarkundala Highway, Mahuva with18
ginning machine and 1 pressing machine with the capacity of 3560
MT of S-6 cotton per annum.
Recent Results:
For the year ended March 31, 2011, the company reported an
operating income of INR25.16 crore and profit after tax of
INR0.07 crore.
OM STEEL: Fitch Assigns 'B' Rating on INR300 Million Loan
---------------------------------------------------------
Fitch Ratings has assigned India's Om Steel Traders Chennai
Private Limited a National Long-Term rating of 'Fitch B(ind)'.
The Outlook is Stable.
The ratings are constrained by the working capital intensive
nature of Om Steel's operations and the intense competition in the
steel industry. The ratings are also constrained by the company's
above 90% utilization of working capital limits as it maintains
inventory of only around one to two months of its requirements.
The ratings also factor in Om Steel's moderate interest coverage
of 1.35x in FY11 (FY10: 1.56x) and high financial leverage
(debt/EBITDA), though it decreased to 5.58x in FY11 from 8.18x in
FY10.
The ratings are, however, supported by over six-decade-long track
record of Om Steel's founders in steel trading and the company's
profitable operations with consistent, albeit lower, EBITDA
margins of 1.6% to 2.1% over the last five years.
Negative ratings guidelines would be deterioration in its interest
coverage to below 1.25x on a sustained basis. Positive ratings
guidelines would be interest coverage exceeding 1.75x on a
sustained basis.
Om Steel, a Chennai-based company, is involved in the trading of
iron and steel products. In FY11, the company reported revenues of
INR1,503.8 million (FY10: INR1,241.1 million) and an EBITDA of
INR32.0 million (INR23.7 million). In H1FY12, company reported
revenues of INR1048.8 million and an EBITDA of INR24.5 million as
per the un-audited results.
Fitch has also assigned ratings to Om Steel's bank loans as
follows:
-- INR300 million fund-based working capital bank limits:
'Fitch B(ind)/Fitch A4(ind)'
-- INR100 million non-fund based working capital bank limits:
'Fitch A4(ind)'
RAJHANS ENTERPRISES: ICRA Cuts Rating on INR6.25cr Loan to 'BB'
---------------------------------------------------------------
ICRA has revised the rating assigned to INR6.25 crore term loan,
INR3 crore fund based limits and INR1.66 crore non-fund based
limits of Rajhans Enterprises from '[ICRA]BBB-' to '[ICRA]BB'. The
outlook on the long term rating is stable.
The rating revision takes into account significant increase in
gearing level of the company on account of the debt funded
expansion undertaken by it in the recent past. Further, ICRA notes
that the term loan repayment obligation of the company is
significant in the near to medium term. The revised rating also
factors in moderation in Rajhans' profit margins during FY11 on
account of its inability to pass on the significant increase in
raw material prices to customers. Besides, the rating continues to
remain constrained by the capital intensive nature of the business
and the intense competition in the industry. The rating however,
continues to derive comfort from Rajhans' long track record in
printing industry, its reputed client base and its healthy cash
flow from operations.
Rajhans, founded by Mr. A. Ravindranath in 1983, is in the
business of printing of newspapers, magazines, corporate
brochures, annual reports, calendars, advertising posters, packing
and other promotional & merchandising materials etc. The entity
was converted from proprietorship concern to partnership firm in
the year 2010. Rajhans has a strong customer base and prints a
number of reputed newspapers and magazines including the Times of
India, Rajasthan Patrika, Femina, Cine Blitz etc. Besides, the
entity also manufactures notebooks and stationary items.
During FY2011, Rajhans posted a Profit Before Tax of INR5.5 crore
over an Operating Income of INR67.2 crore.
RAMKUMAR TEXTILE: ICRA Assigns 'ICRA]B+' Rating to INR8.54cr Loan
-----------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' to the INR8.54
crore fund based limits, INR0.17 crore unallocated limits, and a
short term rating of '[ICRA]A4' to the INR0.29 crore of non fund
based limits of Ramkumar Textile Pvt. Ltd.
The assigned rating takes into account the moderate scale of
operations of Ramkumar Textile Private Limited; intense
competition within the fragmented synthetic fabrics industry and
high gearing levels of 3.21 times due to surging working capital
requirements resulted from increased inventory days to 118 days in
FY 11 from 56 days in FY 10. However, RTPL's gearing is expected
to moderate on account of recent equity infusion of INR1.78 crores
in FY12. The rating is also constrained by the company's limited
ability to pass on raw material cost as reflected by declining
operating margins (from 6.1% in FY 09 to 2.8% in FY 11).
The rating, however, draws comfort from the long track record and
extensive experience (of more than a decade) of the promoters in
the textile industry; and favorable location of the weaving
facilities, which provides easy accessibility to raw materials and
processing houses. The rating also factors in the healthy order
book position of -INR16 crore (which is 134% of operating income
in FY 11), to be delivered till mid 2012 which gives revenue
visibility for coming years.
In ICRA's view, the key rating sensitivities are improvement in
the scale of operation and in the capital structure of the
company.
About Ramkumar Textile
RTPL is a Bhilwara based textile company which was incorporated in
the year 1996 under Companies Act, 1956. The company's main
objective is to export synthetic fabrics. RTPL is promoted by
Somani family (Mr. Harakaram Somani, Mr. Rajesh Somani, Ms.
Priyanka somani, and Mr. Sunil Somani). The promoters have
business background and were engaged in synthetic fabrics business
for more than a decade.
RTPL makes suiting fabric for men and women in poly viscose, poly
wool, 100% wool, poly cotton, and lycra in various weaves like
plain, twill, and satinas per buyer's specification and
requirement. The company also makes fabic for traditional Arabian
clothing like mashla, abaya, and emma for men and spun polyster
high twist voile plain dyed and printed for women. RTPL doesn't
have its own manufacturing unit and outsources production of
fabric to local fabric weavers in Bhilwara on job work basis.
ROOP TECHNOLOGY: ICRA Assigns '[ICRA]B+' Rating to INR7cr Loan
--------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' for the
INR7.00 Crore Fund-Based Facility and '[ICRA]A4' for INR23.00
Crore Non-fund based facility of Roop Technology Private Limited.
The rating factors in the long experience of the promoters in LCD
distributorship business, an established distributor for leading
LCD and IT product brands in India. The rating is constrained by
modest scale of operations along with adverse capital structure
and low operating margin given trading nature of business along
with intense competition in the distributorship business. The
business also remains susceptible to economic slowdown as
reflected by sharp dip in revenue during FY 2010.
Incorporated in 1998, Roop Technology Private Limited is a company
dealing with distribution of several IT and security related
products, with focus on LCDs. It is an authorized distributor for
View Sonic, LG, Philips for its LCD monitors, Dell for laptops,
ZICOM for security products, TP-Link for networking products and
Kaspersky for its anti-virus. The company has ten branches across
India covering South and West. The company is a pan-India
distributor for View Sonic LCDs, for LG it is distributor for
Mumbai, Aurangabad, Pune, Hyderabad and Ahmedabad. For Philips it
is exclusive dealer for the western region and for ZICOM it
operates in Gujarat, Hyderabad and Maharashtra. For Dell computers
it sells it through it all branches in Southern and Western
region. RTPL reported a net profit of INR0.78 Crore on an
operating income of INR108.89 Crore for 2010-11.
SHARE MICROFIN: ICRA Cuts Rating on INR384cr Loan to '[ICRA] D'
---------------------------------------------------------------
ICRA has revised the 'LB+' rating of INR384 crore Long Term Bank
loans and INR50 crore NCD of Share Microfin Limited to '[ICRA] D'
and has also revised the rating of INR100 crore subordinated debt
programme from 'LB-' to [ICRA] D.
Share Microfin was admitted to Corporate Debt Restructuring (CDR)
Cell and the CDR package was approved in June 2011 which approved
a reduction in interest rate and increase in repayment period,
alongwith a moratorium of 1 year in principal servicing starting
April 1, 2011. SML has been repaying as per the revised CDR terms
w.e.f May 2011 to all its lenders. However, one of the lenders has
not restructured the loan outstanding on SML so far, as SML has
been repaying the loan outstanding as per the revised CDR
repayment schedule to them, therefore there is a deficit in
payment on original terms of payments, which ICRA treats as
default. Further, there may be some economic loss to the investors
as a result of the CDR package. SMLs financials and economic
capitalisation continue to be under pressure as a result of
continued stress on collection efficiency in Andhra Pradesh (AP)
and lack of funding lines. AP portfolio contributed to 58% of
total portfolio of SML as on May 2011 or 3.35 times SML's net
worth.
About SHARE Microfin
SHARE Microfin Limited was founded by Mr. Udaia Kumar in the year
1999-2000 as public limited company. It became a registered Non
Banking Finance Company in 2000 and was the first Microfinance
Institution (MFI) to obtain a NBFC (Non Deposit taking) license.
SML is engaged in micro finance lending activities .SML serves
33.87 lakh members across 20 Indian states with 58% of its
portfolio as on May 2011 being concentrated in Andhra Pradesh.
For the year ending March 2011, SML reported a PAT of INR9.10
crore on an asset based of INR2638 3001 crore vis-a-vis PAT of
INR108.72 crore on a managed asset base of INR3043 crore in
FY2010. The company provided Rs 173 crore for the AP portfolio of
SML and had an adjusted gearing of 6.76 times as on Mar-11 as
compared with 8.81 times as on March 2010.(assuming assigned book
as debt). The unprovided AP portfolio was Rs 1071 crore as on Mar-
2011.
SOGO COMPUTERS: ICRA Places '[ICRA]C' Rating on INR23cr Bank Loan
-----------------------------------------------------------------
ICRA has placed the '[ICRA]C/[ICRA]A4' rating assigned to the
INR23 Crore bank limits of Sogo Computers Private Limited on a
notice of withdrawal for 90 days on the company's request and
receipt of no-objection certificate from its banker. As per
ICRA's policy, the ratings will be withdrawn after 90 days from
the date of this withdrawal notice.
TERRAM GEOSYNTHETICS: ICRA Cuts Rating on INR40.25cr Loan to 'D'
----------------------------------------------------------------
ICRA has revised the '[ICRA]BB+' rating assigned to the INR40.25
crore fund based limits of Terram Geosynthetics Private Limited to
'[ICRA]D'. ICRA has also revised the '[ICRA]A4+' rating assigned
to the INR2.00 crore non-fund based limits of TGPL to [ICRA]D.
The rating revision factors in the delays by TGPL in servicing the
interest on its term loan due to delays in commissioning of the
company's manufacturing plant at Mundra. While the plant was
earlier scheduled to commence operations in Q3 FY11, deficiencies
in meeting the required performance criteria during the trial run
necessitated installation of additional equipment which resulted
in postponement of commissioning of the facility. The resultant
loss of revenue caused delays in debt servicing. Currently the
required machinery has been installed at the facility and the
trial runs are underway. The ratings are also constrained by
exposure of TGPL's operating margins to volatility in raw material
prices which is accentuated by the fact that GIPLs business is raw
material intensive with the raw material cost expected to
constitute almost half of its revenues. Moreover, as GIPL is
expected to derive most of its revenues through exports, the
company is exposed to exchange rate risks and counterparty credit
risks.
The ratings however, favorably factor in the established brand of
the company's products, the growing awareness regarding the
benefits of geosynthetics and the favorable outlook for TGPL's
products. The ratings also factor in the advantages TGPL derives
from being located in Mundra MITAP, the experienced key management
personnel of the company and the support TGPL derives from its UK-
based parent, Terram Limited, in terms of access to experienced
personnel as well as purchase commitments through off-take
agreements.
About Terram Geosynthetics
Terram Geosynthetics Private Limited, incorporated in April 2008,
is an associate of UK-based Terram Limited. Terram, incorporated
in 1966 as part of the Imperial Chemical Industries Group, has
witnessed numerous changes in ownership over the years and is
currently a wholly-owned subsidiary of UK-based Fiberweb Plc,
which ranks among the top ten global manufacturers of nonwovens.
TGPL is currently setting up a production facility at MITAP to
manufacture thermally-bonded nonwoven geotextiles. The facility
will have an installed capacity of 5740 metric tonnes.
UNIGLOBE MOD: ICRA Assigns '[ICRA]BB' Rating to INR6.95cr Loan
--------------------------------------------------------------
ICRA has assigned '[ICRA]BB/[ICRA]A4' ratings for the INR6.95
crore bank facilities of Uniglobe Mod Travel Private Limited. The
outlook on the long-term rating is "Stable".
The assigned ratings consider UMT's diversified customer base with
corporate clients across various sectors, healthy growth in
business volumes owing to steady increase in number of customers
during last few years, and UMT's affiliation with IATA which
provides it access to a large network of global airlines. The
ratings also take into account the significant experience of
promoters in the travel industry. The ratings are, however,
constrained by high working capital intensity of the business
coupled with high utilization of existing bank limits leading to
limited financial flexibility. Additionally, given the annual
receipts of commission income from airlines, the company remains
exposed to risk of cash flow mismatch during the year. Further,
UMT faces high competitive intensity in the travel management
business with presence of several large players and online
bookings offered by airlines as well as online travel portals.
Recent Results
The company reported PAT of INR0.7 crore on an operating income of
INR5.7 Crore during 2010-11.
About Uniglobe Mod Travel
Uniglobe Mod Travel Private Limited is a travel agency providing
tour and travel services to primarily corporate clients. UMT was
incorporated in 1991 and has scaled its business significantly
during last few years. It currently operates through its two
branches at New Delhi and Mumbai. The company provides bundled
travel solutions to its clients, including booking of travel
tickets, hotels for accommodation, travel related insurance and
other miscellaneous services.
The company is a franchise for Uniglobe Travel South Asia, which
is a master franchise to Uniglobe Travel International (UTI),
which is a leading global travel management company with presence
in more than 60 countries. UTSA operates its business in South
Asia, providing travel management services in India, Nepal, Sri
Lanka, Bangladesh, Bhutan and Maldives. UTSA has strong presence
in India with around 42 franchises across India. Both UTSA and UMT
belong to the reputed Modi Group of Industries (MGI) which belongs
to Mr. V. K. Modi. MGI has presence in diversified businesses and
operates several reputed companies like Modi Guard, 1-Globe,
Synapse Communications etc.
* INDIA: Moody's Revises FCBDC to Baa3/P-3 From Ba1/Not Prime
-------------------------------------------------------------
Moody's Investors Service sees no impact on the debt ratings of
Indian financial institutions following its action on December 21,
2011 to unify the sovereign's local currency and foreign currency
government bond ratings at Baa3/P-3 with a stable outlook.
As such, the sovereign action does not impact the foreign currency
senior unsecured debt ratings assigned to Indian banks and
government-related financial institutions.
As part of the sovereign rating move, Moody's has also revised
India's foreign currency bank deposit ceiling to Baa3/P-3, with a
stable outlook, from Ba1/Not Prime.
At the same time, following the sovereign rating changes, Moody's
has adjusted the foreign currency deposit ratings of 16 Indian
financial institutions to Baa3/Prime-3 from Ba1/Not Prime. The
adjusted ratings carry stable outlooks. All other ratings are
unchanged.
The 16 affected institutions are the State Bank of India; ICICI
Bank Limited; Punjab National Bank; Bank of Baroda; Bank of India;
Canara Bank; HDFC Bank Limited; IDBI Bank Limited; Axis Bank
Limited; Union Bank of India; Central Bank of India; Indian
Overseas Bank; Oriental Bank of Commerce; Syndicate Bank; Yes Bank
Limited; and Export-Import Bank of India.
The detailed ratings and actions are detailed below. All carry
stable outlooks except where indicated:
State Bank of India: The foreign currency long-term/short-term
deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime.
All other ratings were unaffected: Baa2/Prime-2 global local
currency (GLC) deposit; Baa2/Prime-2 foreign currency long-
term/short-term senior debt; and D+ bank financial strength rating
(BFSR), which maps to a Baa3 baseline credit assessment (BCA).
ICICI Bank Limited: The foreign currency long-term/short-term
deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime.
All other ratings were unaffected: Baa2/Prime-2 GLC deposit;
Baa2/Prime-2 foreign currency long-term/short-term senior debt;
and C- BFSR, which maps to a Baa2 BCA.
Punjab National Bank: The foreign currency long-term/short-term
deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime.
All other ratings were unaffected: Baa2/Prime-2 GLC deposit;
Baa2/Prime-2 foreign currency long-term/short-term issuer; and D+
BFSR, which maps to a Baa3 BCA.
Bank of Baroda: The foreign currency long-term/short-term deposit
ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime. All
other ratings were unaffected: Baa2/P-2 GLC deposit; Baa2/Prime-2
foreign currency long-term/short-term senior debt; and D+ BFSR,
which maps to a Ba1 BCA.
Bank of India: The foreign currency long-term/short-term deposit
ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime. All
other ratings were unaffected: Baa2/P-2 GLC deposit; Baa2/Prime-2
foreign currency long-term/short-term senior debt; and D+ BFSR,
which maps to a Ba1 BCA.
Canara Bank: The foreign currency long-term/short-term deposit
ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime. All
other ratings were unaffected: Baa2/P-2 GLC deposit; Baa2/Prime-2
foreign currency long-term/short-term senior debt; and D+ BFSR,
which maps to a Baa3 BCA.
HDFC Bank Limited: The foreign currency long-term/short-term
deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime.
All other ratings were unaffected: Baa2/Prime-2 GLC deposit;
Baa2/Prime-2 foreign currency long-term/short-term senior debt;
and C- BFSR, which maps to a Baa2 BCA.
IDBI Bank Limited: The foreign currency long-term/short-term
deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime.
All other ratings were unaffected: Baa3/Prime-3 GLC deposit;
Baa3/Prime-3 foreign currency long-term/short-term senior debt;
and D- BFSR, which maps to a Ba3 BCA.
Axis Bank Limited: The foreign currency long-term/short-term
deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime.
All other ratings were unaffected: Baa2/Prime-2 GLC deposit;
Baa2/Prime-2 foreign currency long-term/short-term senior debt;
and C- BFSR, which maps to a Baa2 BCA.
Union Bank of India: The foreign currency long-term/short-term
deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime.
All other ratings were unaffected: Baa2/P-2 GLC deposit;
Baa2/Prime-2 foreign currency long-term/short-term senior debt; D+
BFSR, which maps to a Ba1 BCA.
Central Bank of India: The foreign currency long-term/short-term
deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime.
All other ratings were unaffected: Baa3/Prime-3 GLC deposit;
Baa3/Prime-3 foreign currency long-term/short-term senior debt; D-
BFSR, which maps to a Ba3 BCA.
Indian Overseas Bank: The foreign currency long-term/short-term
deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime.
All other ratings were unaffected: Baa3/Prime-3 GLC deposit;
Baa3/Prime-3 foreign currency long-term/short-term senior debt; D
BFSR, which maps to a Ba2 BCA.
Oriental Bank of Commerce: The foreign currency long-term/short-
term deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not
Prime. The revised ratings carry a stable outlook. All other
ratings were unaffected and carried negative outlooks: Baa2/Prime-
2 GLC deposit; Baa2/Prime-2 foreign currency long-term/short-term
senior debt; and D+ BFSR, which maps to a Ba1 BCA.
Syndicate Bank: The foreign currency long-term/short-term deposit
ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime. All
other ratings were unaffected: Baa2/Prime-2 GLC deposit;
Baa2/Prime-2 foreign currency long-term/short-term senior debt;
and D+ BFSR, which maps to a Ba1 BCA.
Yes Bank Limited: The foreign currency long-term/short-term
deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not Prime.
All other ratings were unaffected: Baa3/Prime-3 GLC deposit; and
D+ BFSR, which maps to a Ba1 BCA.
Export-Import Bank of India: The foreign currency long-term/short-
term deposit ratings were adjusted to Baa3/Prime-3 from Ba1/Not
Prime. All other ratings were unaffected: Baa3/Prime-3 foreign
currency long-term/short-term senior debt; and BFSR of 12, which
maps to a Ba2 BCA.
The principal methodologies used in rating of Indian banks were
Bank Financial Strength Ratings: Global Methodology published in
February 2007 and Incorporation of Joint-Default Analysis into
Moody's Bank Ratings: A Refined Methodology published in March
2007.
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I N D O N E S I A
=================
MERPATI NUSANTARA: Garuda Hopes to Get IDR225-Bil. Debt Payment
---------------------------------------------------------------
The Jakarta Post reports that Garuda Indonesia hopes ailing state-
owned PT Merpati Nusantara Airlines will pay at least
IDR225 billion (US$25 million) out of its total IDR330 billion
debts.
The report relates that Garuda president director Emirsyah Satar
said Merpati should pay its debt of at least of about
IDR225 billion in 2010 under its debt restructuring program, but
it has never realized the payment.
"Merpati has received capital injections from the state, so the
company could pay its debt to Garuda. However, the final words are
on the hands of the share holders of Merpati and Garuda,"
kompas.com quoted Mr. Satar as saying, according to the report.
Mr. Satar explained Garudas profit would increase this year if the
debt was paid, the report adds.
Garuda is targeting to secure a turnover of IDR26 trillion in 2011
from 17 million passengers, The Jakarta Post notes.
Headquartered in Jakarta, Indonesia, PT Merpati Nusantara
Indonesia -- http://www.merpati.co.id/-- is a state-owned
carrier that services predominantly international routes. The
carrier is facing the threat of being declared bankrupt with
IDR1.6 trillion in accumulated losses.
* * *
The Troubled Company Reporter-Asia Pacific, citing Jakarta Globe,
reported on May 19, 2011, State Enterprises Minister Mustafa
Abubakar said the financial restructuring of Merpati Nusantara
Airlines will carry on despite a recent crash that led to
questions about the safety of its fleet.
Jakarta Globe said Merpati was under the care of the state-asset
management company Perusahaan Pengelola Aset, which has injected
hundreds of billions of rupiah to bring it back to profitability.
But after the crash of a Merpati MA-60 that killed 25 people on
May 7, 2011, pressure is building to let the airline go under.
=========
J A P A N
=========
OLYMPUS CORP: Prosecutors Raid Offices, Homes Amid Cover-up Probe
-----------------------------------------------------------------
Kyodo News reports that prosecutors searched Olympus Corp.'s
headquarters and related locations Wednesday as part of a wide-
ranging probe into the alleged cover-up of massive investment
losses at the camera maker firm.
According to the report, the special investigative unit of the
Tokyo District Public Prosecutor's Office jointly conducted the
search with the Metropolitan Police Department and the Securities
and Exchange Surveillance Commission in a bid to build a case
against its former executives by March.
The former executives are accused of cooking the books to cover up
JPY117.7 billion in investment losses dating back to the 1990s,
the news agency says.
Kyodo relates that investigators suspect former Olympus Chairman
and President Tsuyoshi Kikukawa, 70, former Executive Vice
President Hisashi Mori, 54, and former auditor Hideo Yamada, 66,
perpetrated the "tobashi" accounting fraud by failing to book the
losses for the year ended in March 2007 and subsequent years.
According to Kyodo, sources said several dozen locations,
including the homes of Mr. Kikukawa and other former executives,
as well as three Japanese firms that were acquired by the
precision instrument maker to conceal the losses, are also being
searched.
Senior police and SESC officials have hinted the company would not
be held criminally responsible as a corporate entity, since
Olympus has already erased its past losses and maintains the
status of a blue-chip company, the report notes.
While the criminal liability of Messrs. Kikukawa, Mori and Yamada
will likely be raised, Olympus might only face administrative
punishment in the form of fines, sources told Kyodo.
When questioned by investigators, Messrs. Mori and Yamada admitted
their involvement in concealing the losses and said they had
reported the matter to Mr. Kikukawa, Kyodo's sources said.
Meanwhile, Kyodo News reports that members of a third-party
investigative panel set up by Olympus to probe the scandal said
Wednesday the company has paid more than JPY7 billion to various
people employed at financial institutions as a reward for their
help in covering up the losses.
Kyodo relates that panel members said more than JPY3 billion has
been paid to five officials at German and Liechtenstein banks, who
have since resigned, in addition to official commissions and
JPY3.5 billion to former employees of major securities firms.
Mr. Mori told the panel that the money was paid to the European
bank officials in return for their help in procuring funds to
cover up the losses. Olympus is planning to seek the return of
some JPY7.2 billion because the money paid cannot be considered
legitimate commissions, company sources told Kyodo.
Of the JPY3.5 billion paid to the former brokerage officials,
about JPY2.4 billion went to an investment advisory firm headed by
one and JPY1.1 billion to a fund linked to another, panel members,
as cited by Kyodo said.
The investigative sources said Investigators will also question
the former brokerage officials to find out how they helped Olympus
establish a scheme for concealing the losses, according to Kyodo.
Securities Investment Scandal
The Troubled Company Reporter-Asia Pacific reported on Nov. 9,
2011, that Block & Leviton LLP, a Boston-based law firm
representing investors seeking to recover money lost due to
investment fraud, said it is investigating possible securities
fraud claims involving Olympus Corp.
On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008. At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition. The fees were approximately one-third of the $2.0
billion acquisition price, which is almost 30 times higher than
normal.
On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990. Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."
The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40). The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72. Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.
Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed. In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.
About Olympus Corp.
Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products. As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.
OLYMPUS CORP: May Liquidate Three Unlisted Units
------------------------------------------------
Kyodo News reports that sources said Olympus Corp. may liquidate
three unlisted domestic subsidiaries whose acquisitions were used
to cover up massive investment losses.
Health food and cosmetics firm Humalabo Co., industrial waste
disposal company Altis Co. and cooking container maker News Chef
Inc. "are dragging down (Olympus') business performance and have
created no beneficial synergies with its core business," an
Olympus source told Kyodo.
Olympus bought the three firms in 2008 for a total of
JPY73.4 billion -- an inflated price that substantially overvalued
them, according to Kyodo.
Kyodo notes that the funds involved in the transactions were
subsequently used to cover up more than JPY100 billion worth of
investment losses that Olympus incurred after the bubble economy
imploded in the early 1990s.
Kyodo, citing research firm Tokyo Shoko Research Ltd, says the
operations of the three firms differ significantly from Olympus's
mainstay businesses, and all three have been in the red in recent
years as liabilities currently exceed assets.
The report notes that the company is considering selling them as
part of efforts to restructure its management and operations.
Olympus hopes ditching the three loss-making companies might
signal to investors and the markets that the blue-chip company is
making a clean break with its shady accounting practices and lax
corporate governance.
Securities Investment Scandal
The Troubled Company Reporter-Asia Pacific reported on Nov. 9,
2011, that Block & Leviton LLP, a Boston-based law firm
representing investors seeking to recover money lost due to
investment fraud, said it is investigating possible securities
fraud claims involving Olympus Corp.
On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008. At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition. The fees were approximately one-third of the
$2.0 billion acquisition price, which is almost 30 times higher
than normal.
On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990. Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."
The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40). The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72. Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.
Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed. In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.
About Olympus Corp.
Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products. As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.
OLYMPUS CORP: Hires SMBC Nikko, Citigroup to Help Raise Capital
---------------------------------------------------------------
Kana Inagaki and Atsuko Fukase at Dow Jones Newswires report that
people familiar with the matter said Olympus Corp. has hired SMBC
Nikko Securities Inc. and Citigroup Inc. to help it raise fresh
capital to restore its battered financial health.
The bankers are looking for companies that will take a stake in
Olympus through a purchase of new shares and have talked to Sony
Corp. among others, another person with knowledge of the matter
told Dow Jones.
Dow Jones notes that Olympus repeated an earlier comment from
President Shuichi Takayama that all options for strengthening the
company's finances are on the table.
According to the news agency, Olympus's search for a strategic
investor comes as two groups of stakeholders push competing
visions of how the Japanese company should recover from an
accounting scandal involving its efforts to hide more than
US$1.5 billion in investment losses.
Dow Jones relates that some of Olympus's investors have spoken out
against the idea of raising capital by selling a stake to an
outside company, warning that such a step could dilute both the
value of their holdings and their voting influence at a
shareholders' meeting.
Olympus's main creditors, however, back the idea of a strategic
investor, Dow Jones relates citing people familiar with the
matter. Those creditors, the biggest of which are Sumitomo Mitsui
Banking Corp. and Bank of Tokyo Mitsubishi UFJ Ltd., have
repeatedly said that they will continue their support for Olympus
and are committed to remaining involved in the turnaround process,
according to Dow Jones.
Dow Jones reports that an investment banker close to the matter
said that the most likely scenario would involve a domestic
strategic buyer -- backed by one of Olympus's major lenders --
taking a 20%-30% stake.
In an internal memo to employees dated December 20 and viewed by
Dow Jones Newswires, Mr. Takayama wrote that nothing specific has
been decided regarding Olympus's capital-raising plan.
Dow Jones relays Mr. Takayama wrote that the company will also
implement 30%-50% pay cuts for board directors starting this
month. "The environment surrounding our earnings is very severe,"
Mr. Takayama wrote in the memo.
Securities Investment Scandal
The Troubled Company Reporter-Asia Pacific reported on Nov. 9,
2011, that Block & Leviton LLP, a Boston-based law firm
representing investors seeking to recover money lost due to
investment fraud, said it is investigating possible securities
fraud claims involving Olympus Corp.
On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008. At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition. The fees were approximately one-third of the
$2.0 billion acquisition price, which is almost 30 times higher
than normal.
On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990. Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."
The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40). The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72. Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.
Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed. In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.
About Olympus Corp.
Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products. As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.
===============
M O N G O L I A
===============
GOLOMT BANK: S&P Affirms 'B+/B' Issuer Credit Ratings
-----------------------------------------------------
Standard & Poor's Ratings Services revised the outlook on its
long-term issuer credit rating on Golomt Bank of Mongolia to
positive from stable. At the same time, Standard & Poor's affirmed
the 'B+' long-term and 'B' short-term issuer credit ratings.
"We revised the outlook after making a similar outlook revision on
the sovereign credit rating on Mongolia (BB-/Positive/B) on
Dec. 19, 2011. The outlook revision also reflects our view that
Golomt Bank is of 'high systemic importance' and our assessment of
the government of Mongolia as 'highly supportive' of the country's
banking sector," S&P said.
"However, we do not factor any implicit support from the
government in to the ratings on Golomt Bank because the bank's
stand-alone credit profile (SACP) is very close to the local
currency rating on the Mongolia government. Nonetheless if the
sovereign ratings on the Mongolian government are raised, implying
the government's potentially stronger capacity to support the
banking sector, we could also upgrade Golomt Bank," S&P said.
====================
N E W Z E A L A N D
====================
CBD CONSTRUCTION: Judge Rejects Insolvency Payback Bid
------------------------------------------------------
Fairfax NZ News reports that a High Court judge has rejected
insolvency applications in a stoush between Kawarau Falls
contractor CBD Construction and building supplier Carters.
Associate Judge Rob Osborne in the High Court in Christchurch
turned down applications by Grant Blackmore and James Fry seeking
approval of bankruptcy settlement proceedings, according to the
news agency.
Fairfax NZ relates that court documents said Blackmore and Fry
were the directors of CBD Construction, which was put in
liquidation in March last year. Its work included construction at
the Kawarau Falls site.
The directors filed separate applications asking the court to
approve their liquidation payout plans, but building firm Carters
objected, the report notes.
According to the report, Carters, the only creditor to oppose the
applications, said the applicants failed to meet an Insolvency Act
obligation to give sufficient notice of reconvened creditors'
meetings.
The report says CBD sent creditors payback proposals but Carters,
which claimed a debt of more than NZ$225,000, refused to accept
the plans.
Bankruptcy proceedings started against the directors in November
last year then adjourned when they applied to the court for
judgment, the report says.
There were changes to a list of creditors and Carters claimed
inadequate notice was given of a meeting on November 30 last year,
according to Fairfax NZ.
Fairfax NZ says Judge Osborne agreed, saying the insolvents chose
to timetable a meeting 25 hours beforehand.
The news agency relates that Judge Osborne also raised a question
about a creditor claim from a company called James Grant
Developments for NZ$450,000.
According to Fairfax NZ, the late debt claim, uncertainty around
the extent of the debt and the level of apparent company control
of James Grant Developments, led the court to find the proposals
"inexpedient".
Christchurch-based construction company CBD Construction was
placed in liquidation in April 2010.
OXFORD FINANCE: S&P Withdraws 'BB/B' Counterparty Credit Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its BB/Stable/B
counterparty credit rating on New Zealand-based Oxford Finance
Corp. Ltd. at the issuer's request. Oxford Finance is a 100%-owned
subsidiary of the electricity distribution company, Electra Ltd.,
which is based in the lower north island region. The company
benefits from a parent guarantee on all its debt obligations.
"Based on the group profile, we consider that the rating on OFC
still faced high downward pressure, given the company's low growth
prospects, limited financial flexibility, and current credit
metrics that are generally close to its covenant levels," S&P
said.
SOUTH CANTERBURY: Southbury Firms Unlikely to Fully Pay SCF Debt
----------------------------------------------------------------
The New Zealand Herald reports that receivers for Southbury Group
Ltd and Southbury Corp Ltd said Dec. 21 they had repaid
NZ$2 million of NZ$189 million owed to failed finance company
South Canterbury Finance, but the chances of repaying any more
were slim.
The Southbury companies were vehicles for South Canterbury
Finance's principal, the late Allan Hubbard, who died in a car
crash in September, the report discloses.
SGL's major asset is a 100 per cent ownership of SCL, whose
primary asset is South Canterbury Finance, which is also in
receivership, the Herald notes.
According to the Herald, receivers Kerryn Downey and William
Black, of McGrath Nicol, said in their latest six-monthly report
that an SGL loan to Commtest Instruments had been realised for a
net NZ$2.3 million, of which NZ$2 million had been repaid to South
Canterbury Finance.
SGL had owed NZ$84.7 million to South Canterbury Finance at the
time the receivers were called in on November 3 last year, while
SCL owed the finance company NZ$103.9 million, the Herald
discloses.
The Herald relates that Messrs. Downey and Black said a separate
sales process has been run for South Canterbury Finance's core
finance company business and for individual and non-core
subsidiaries and investments. The other investments held by South
Canterbury Finance would be realised over time, they added.
"We do not expect that there will be sufficient funds generated
from either the South Canterbury Finance or SGL realisable assets
to enable a return to be paid to SCL," the receivers, as cited by
the Herald, said in their report.
The receivers said a number of transactions involving SCL and SGL
had been investigated, the Herald notes.
The receivers said potential breaches of the law would be
reported, the report adds.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited
(NZE:SCFHA) -- http://www.scf.co.nz/-- is engaged in the
provision of financial services. The Company's principal
activities are borrowing funds from public and institutional
investors and on lending those funds to the business, plant and
equipment, property, rural and consumer sectors. It typically
advances funds by means of hire purchase, floor plans, leasing of
plant, vehicles and equipment, personal loans, business term
loans and revolving credit facilities, mortgages against
property, and other financial instruments, including consumer
loan insurance.
On Aug. 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under
heightened surveillance since 2008. As part of that, SCF was
granted a Trustee waiver in February 2010 to allow it time to
recapitalize. Unfortunately, the Company's Directors have
advised us that they have not been successful with respect to a
recapitalization and requested us to appoint a receiver. At this
point we, as Trustee, agree that it is the best interests of
debenture, deposit and bond holders to do that," said Yogesh
Mody, Southern Regional Manager for Trustees Executors Limited.
The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.
=================
S I N G A P O R E
=================
PACIFIC INTERNATIONAL: Moody's Withdraws 'B1' CFR
-------------------------------------------------
Moody's Investors Service has withdrawn Pacific International
Lines (Private) Limited's corporate family rating of B1. The
rating had a stable outlook prior to withdrawal.
Ratings Rationale
Moody's has withdrawn the rating for its own business reasons.
Please refer to the Moody's Investors Service's Policy for
Withdrawal of Credit Ratings.
Pacific International Lines (Private) Limited is a private liner
company established in Singapore in March 1967 by the owner, Y C
Chang. It is the nineteenth largest liner in the world and
operates a fleet of about 142 vessels with a total capacity of
about 264,000 twenty-foot equivalent units ("TEUs").
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
ADAMUS RESOURCES ADU 200.07 -1.29
APN EUROPEAN PRO AEZ 563.10 -79.26
AUSTAR UNITED AUN 734.96 -173.09
AUSTRALIAN ZI-PP AZCCA 77.74 -2.57
AUSTRALIAN ZIRC AZC 77.74 -2.57
AUTRON CORP LTD AAT 32.50 -13.46
AUTRON CORP LTD AAT 32.50 -13.46
BIRON APPAREL LT BIC 19.71 -2.22
CENTRO PROPERTIE CNP 15,483.44 -349.73
MACQUARIE ATLAS MQA 1,894.75 -230.50
MISSION NEWENER MBT 39.20 -31.86
NATIONAL LEISURE NLG 154.59 -34.49
NATURAL FUEL LTD NFL 19.38 -121.51
ORION GOLD NL ORN 11.35 -4.05
POWERLAN LTD PWR 30.18 -12.07
REDBANK ENERGY L AEJ 377.31 -22.16
RENISON CONSOLID RSN 10.20 -22.16
RENISON CONSO-PP RSNCK 10.20 -22.16
RIVERCITY MOTORW RCY 386.88 -809.14
SCIGEN LTD-CUFS SIE 68.70 -42.35
STERLING BIOFUEL SBI 20.58 -1.88
SVC GROUP LTD SVC 13.47 -1.66
CHINA
BAOCHENG INVESTM 600892 43.73 -3.94
CHENGDE DALU -B 200160 33.15 -5.30
CHENGDU UNION-A 693 32.68 -15.13
CHINA FASHION CFH 10.11 -0.76
CHINA KEJIAN-A 35 103.72 -192.59
CONTEL CORP LTD CTEL 59.32 -45.72
DONGXIN ELECTR-A 600691 14.82 -23.94
GUANGDONG ORIE-A 600988 15.71 -3.91
GUANGDONG SUNR-A 30 111.22 0.00
GUANGDONG SUNR-B 200030 111.22 0.00
GUANGXIA YINCH-A 557 19.49 -44.84
HEBEI BAOSHUO -A 600155 141.30 -414.58
HEBEI JINNIU C-A 600722 240.40 -64.41
HUASU HOLDINGS-A 509 94.81 -12.27
HUNAN ANPLAS CO 156 45.35 -32.70
JILIN PHARMACE-A 545 34.73 -7.31
JINCHENG PAPER-A 820 198.46 -130.71
QINGDAO YELLOW 600579 218.06 -21.01
SHANGHAI WORLDBE 600757 14.33 -0.07
SHANXI LEAD IN-A 673 19.29 -1.82
SHENZ CHINA BI-A 17 20.97 -266.50
SHENZ CHINA BI-B 200017 20.97 -266.50
SHENZ INTL ENT-A 56 256.62 -28.92
SHENZ INTL ENT-B 200056 256.62 -28.92
SHENZHEN DAWNC-A 863 26.83 -165.43
SHENZHEN KONDA-A 48 122.96 -7.23
SHIJIAZHUANG D-A 958 217.74 -95.97
SICHUAN DIRECT-A 757 96.63 -170.70
SICHUAN GOLDEN 600678 201.92 -115.27
TAIYUAN TIANLO-A 600234 67.43 -22.23
TIANJIN MARINE 600751 114.38 -61.31
TIANJIN MARINE-B 900938 114.38 -61.31
TIBET SUMMIT I-A 600338 85.56 -3.87
TOPSUN SCIENCE-A 600771 137.37 -85.06
WUHAN BOILER-B 200770 317.76 -162.36
WUHAN GUOYAO-A 600421 11.22 -28.07
WUHAN LINUO SOLA 600885 106.01 -9.03
XIAMEN OVERSEA-A 600870 257.06 -137.85
XIAN HONGSHENG-A 600817 15.98 -296.67
YANBIAN SHIXIA-A 600462 204.56 -22.61
YANTAI YUANCHE-A 600766 63.90 -6.36
YIBIN PAPER IN-A 600793 144.18 -2.37
YUEYANG HENGLI-A 622 37.67 -21.61
HONG KONG
0.00 0.00
BEP INTL HLDGS L 2326 10.32 -1.83
BUILDMORE INTL 108 16.57 -57.57
CHINA COMMUNICAT 8206 11.52 -27.35
CHINA HEALTHCARE 673 37.18 -12.58
CHINA NEW ENERGY 1041 110.74 -80.18
CHINA OCEAN SHIP 651 485.84 -2.95
CHINA PACKAGING 572 19.73 -16.87
CMMB VISION HOLD 471 30.68 -17.93
EGANAGOLDPFEIL 48 557.89 -132.86
FIRST NTUL FOODS 1076 14.94 -56.59
FU JI FOOD & CAT 1175 73.43 -389.20
LUNG CHEONG INTL 348 62.04 -0.37
MELCOLOT LTD 8198 51.52 -55.33
MITSUMARU EAST K 2358 24.87 -16.51
PALADIN LTD 495 158.18 -11.60
PCCW LTD 8 6,248.35 -31.61
PROVIEW INTL HLD 334 314.87 -294.85
REORIENT GROUP 376 15.67 -14.24
SINO RESOURCES G 223 15.55 -33.59
SMART UNION GP 2700 41.81 -38.85
SUNLINK INTL HLD 2336 17.79 -36.13
SURFACE MOUNT SMT 95.95 -2.48
TACK HSIN HLDG 611 68.05 -67.58
INDONESIA
ARPENI PRATAMA APOL 613.56 -124.15
ASIA PACIFIC POLY 429.86 -844.66
ERATEX DJAJA ERTX 11.52 -21.74
HANSON INTERNATI MYRX 33.41 -7.32
HANSON INT-PREF MYRXP 33.41 -7.32
JAKARTA KYOEI ST JKSW 30.64 -43.02
MITRA INTERNATIO MIRA 1,070.80 -443.66
MITRA RAJASA-RTS MIRA-R2 1,070.80 -443.66
MULIA INDUSTRIND MLIA 493.52 -46.89
PANASIA FILAMENT PAFI 34.26 -18.96
PANCA WIRATAMA PWSI 30.18 -37.45
TOKO GUNUNG AGUN TKGA 13.76 -0.87
UNITEX TBK UNTX 17.85 -17.89
INDIA
ALPS INDUS LTD ALPI 288.11 -7.01
AMIT SPINNING AMSP 20.43 -1.96
ARTSON ENGR ART 23.87 -0.60
ASHAPURA MINECHE ASMN 191.87 -68.03
ASHIMA LTD ASHM 63.23 -48.94
ATV PROJECTS ATV 60.17 -54.25
BELLARY STEELS BSAL 451.68 -108.50
BHAGHEERATHA ENG BGEL 22.65 -28.20
BLUE BIRD INDIA BIRD 122.02 -59.13
CAMBRIDGE SOLUTI CAMB 149.58 -56.66
CELEBRITY FASHIO CFLI 36.61 -6.76
CFL CAPITAL FIN CEATF 12.36 -49.56
COMPUTERSKILL CPS 14.90 -7.56
CORE HEALTHCARE CPAR 185.36 -241.91
DCM FINANCIAL SE DCMFS 17.10 -9.46
DFL INFRASTRUCTU DLFI 42.74 -6.49
DIGJAM LTD DGJM 99.41 -22.59
DUNCANS INDUS DAI 133.65 -205.38
FIBERWEB INDIA FWB 12.23 -16.21
GANESH BENZOPLST GBP 48.95 -22.44
GEM SPINNERS LTD GEMS 14.58 -1.16
GSL INDIA LTD GSL 29.86 -42.42
HARYANA STEEL HYSA 10.83 -5.91
HENKEL INDIA LTD HNKL 88.83 -36.09
HIMACHAL FUTURIS HMFC 406.63 -210.98
HINDUSTAN PHOTO HPHT 74.44 -1,519.11
HINDUSTAN SYNTEX HSYN 15.20 -3.81
HMT LTD HMT 133.66 -500.46
ICDS ICDS 13.30 -6.17
INTEGRAT FINANCE IFC 49.83 -51.32
JAGSON AIRLINES JGA 11.31 -0.41
JCT ELECTRONICS JCTE 104.55 -68.49
JD ORGOCHEM LTD JDO 10.46 -1.60
JENSON & NIC LTD JN 18.05 -86.40
JIK INDUS LTD KFS 20.63 -5.62
JOG ENGINEERING VMJ 50.08 -10.08
KALYANPUR CEMENT KCEM 33.31 -30.53
KDL BIOTECH LTD KOPD 14.66 -9.41
KERALA AYURVEDA KRAP 13.97 -1.69
KIDUJA INDIA KDJ 17.15 -2.28
KINGFISHER AIR KAIR 1,935.94 -661.89
KINGFISHER A-SLB KAIR/S 1,935.94 -661.89
KITPLY INDS LTD KIT 37.68 -45.35
LLOYDS FINANCE LYDF 21.65 -11.39
LLOYDS STEEL IND LYDS 510.00 -48.98
LML LTD LML 65.26 -56.77
MADRAS FERTILIZE MDF 143.14 -99.28
MAHA RASHTRA APE MHAC 22.23 -15.85
MARKSANS PHARMA MRKS 110.32 -14.04
METROGLOBAL LTD MGLB 14.98 -7.51
MILLENNIUM BEER MLB 52.23 -5.22
MILTON PLASTICS MILT 18.65 -52.29
MODERN DAIRIES MRD 38.41 -0.45
MTZ POLYFILMS LT TBE 31.94 -2.57
MYSORE PAPER MSPM 97.02 -15.69
NATH PULP & PAP NPPM 14.50 -0.63
NICCO CORP LTD NICC 78.28 -4.14
NICCO UCO ALLIAN NICU 32.23 -71.91
NK INDUS LTD NKI 141.35 -7.71
NUCHEM LTD NUC 24.72 -1.60
PANCHMAHAL STEEL PMS 51.02 -0.33
PARASRAMPUR SYN PPS 99.06 -307.14
PAREKH PLATINUM PKPL 61.08 -88.85
PIRAMAL LIFE SC PLSL 51.20 -64.85
PREMIER SYNTHET PRS 12.55 -8.26
QUADRANT TELEVEN QDTV 188.57 -116.81
QUINTEGRA SOLUTI QSL 24.66 -11.51
RAJ AGRO MILLS RAM 10.21 -0.61
RATHI ISPAT LTD RTIS 44.56 -3.93
REMI METALS GUJA RMM 101.32 -17.12
RENOWNED AUTO PR RAP 14.12 -1.25
ROLLATAINERS LTD RLT 22.97 -22.24
ROYAL CUSHION RCVP 18.88 -81.42
SADHANA NITRO SNC 18.21 -0.73
SAURASHTRA CEMEN SRC 106.01 -2.81
SCOOTERS INDIA SCTR 19.43 -10.78
SEN PET INDIA LT SPEN 11.58 -26.67
SHAH ALLOYS LTD SA 213.69 -39.95
SHALIMAR WIRES SWRI 25.78 -38.78
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE GANESH FOR SGFO 44.50 -2.89
SHREE KRISHNA SHKP 19.89 -0.71
SHREE RAMA MULTI SRMT 62.15 -42.08
SIDDHARTHA TUBES SDT 76.98 -12.45
SOUTHERN PETROCH SPET 407.16 -200.86
SQL STAR INTL SQL 10.58 -3.28
STERLING HOL RES SLHR 66.77 -2.85
STI INDIA LTD STIB 35.39 -0.54
STORE ONE RETAIL SORI 15.48 -59.09
SUPER FORGINGS SFS 17.83 -6.37
TATA TELESERVICE TTLS 1,311.30 -138.25
TATA TELE-SLB TTLS/S 1,311.30 -138.25
TODAYS WRITING TWPL 44.08 -5.32
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 24.23 -12.34
TUTICORIN ALKALI TACF 19.13 -16.31
UNIFLEX CABLES UFC 47.46 -7.49
UNIFLEX CABLES UFCZ 47.46 -7.49
UNIMERS INDIA LT HDU 18.08 -5.86
UNITED BREWERIES UB 3,067.32 -137.09
UNIWORTH LTD WW 168.36 -155.74
UNIWORTH TEXTILE FBW 20.57 -37.60
USHA INDIA LTD USHA 12.06 -54.51
VANASTHALI TEXT VTI 25.92 -0.15
VENTURA TEXTILES VRTL 14.33 -1.91
VENUS SUGAR LTD VS 11.06 -1.08
JAPAN
CROWD GATE CO 2140 11.63 -4.29
DDS INC 3782 18.69 -0.08
FUJITSU COMP LTD 6719 398.22 -2.90
ISHII HYOKI CO 6336 201.38 -12.95
KANMONKAI CO LTD 3372 68.26 -2.44
KFE JAPAN CO LTD 3061 17.86 -2.27
L CREATE CO LTD 3247 42.34 -9.15
MEIHO ENTERPRISE 8927 76.16 -18.35
MISONOZA THEATRI 9664 71.18 -4.66
NEXT JAPAN HOLDI 2409 177.68 -5.08
NIS GROUP CO LTD NISZ 477.70 -75.44
NIS GROUP CO LTD 8571 477.70 -75.44
PROMISE CO LTD 8574 11,162.39 -661.54
PROPERST CO LTD 3236 305.90 -330.20
TOYO KNIFE CO 5964 74.73 -5.55
KOREA
DAISHIN INFO 20180 740.50 -158.45
HANIL ENGINEERIN 6440 880.70 -22.42
KUKDONG CORP 5320 53.07 -1.85
ORICOM INC 10470 82.65 -40.04
PLA CO LTD 82390 14.95 -21.43
SUNGJEE CONSTRUC 5980 114.91 -83.19
YOUILENSYS CORP 38720 166.70 -12.34
MALAYSIA
BANENG HOLDINGS BANE 38.70 -17.29
HAISAN RESOURCES HRB 69.11 -4.68
HO HUP CONSTR CO HO 65.87 -11.56
LUSTER INDUSTRIE LSTI 19.28 -7.15
MITHRIL BHD MITH 23.78 -5.70
NGIU KEE CO-BHD NKC 14.19 -12.76
VTI VINTAGE BHD VTI 20.92 -3.48
PHILIPPINES
CYBER BAY CORP CYBR 13.99 -95.62
FIL ESTATE CORP FC 40.90 -15.77
FILSYN CORP A FYN 23.81 -11.69
FILSYN CORP. B FYNB 23.81 -11.69
GOTESCO LAND-A GO 21.76 -19.21
GOTESCO LAND-B GOB 21.76 -19.21
PICOP RESOURCES PCP 105.66 -23.33
STENIEL MFG STN 17.61 -11.14
SYNERGY GRID & D SGP 236.14 -17.93
UNIWIDE HOLDINGS UW 50.36 -57.19
VICTORIAS MILL VMC 164.26 -18.20
SINGAPORE
ADV SYSTEMS AUTO ASA 20.62 -11.82
ADVANCE SCT LTD ASCT 25.29 -10.05
HL GLOBAL ENTERP HLGE 91.74 -10.10
LINDETEVES-JACOB LJ 22.43 -6.01
NEW LAKESIDE NLH 19.34 -5.25
SUNMOON FOOD COM SMOON 19.85 -13.04
TT INTERNATIONAL TTI 233.01 -78.01
THAILAND
ABICO HLDGS-F ABICO/F 15.28 -4.40
ABICO HOLDINGS ABICO 15.28 -4.40
ABICO HOLD-NVDR ABICO-R 15.28 -4.40
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
BANGKOK RUBBER BRC 91.32 -113.78
BANGKOK RUBBER-F BRC/F 91.32 -113.78
BANGKOK RUB-NVDR BRC-R 91.32 -113.78
CALIFORNIA W-NVD CAWOW-R 33.30 -10.09
CALIFORNIA WO-FO CAWOW/F 33.30 -10.09
CALIFORNIA WOW X CAWOW 33.30 -10.09
CIRCUIT ELEC PCL CIRKIT 16.79 -96.30
CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30
CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30
DATAMAT PCL DTM 12.69 -6.13
DATAMAT PCL-NVDR DTM-R 12.69 -6.13
DATAMAT PLC-F DTM/F 12.69 -6.13
ITV PCL ITV 37.10 -118.46
ITV PCL-FOREIGN ITV/F 37.10 -118.46
ITV PCL-NVDR ITV-R 37.10 -118.46
K-TECH CONSTRUCT KTECH/F 38.87 -46.47
K-TECH CONSTRUCT KTECH 38.87 -46.47
K-TECH CONTRU-R KTECH-R 38.87 -46.47
KUANG PEI SAN POMPUI 17.70 -12.74
KUANG PEI SAN-F POMPUI/F 17.70 -12.74
KUANG PEI-NVDR POMPUI-R 17.70 -12.74
PATKOL PCL PATKL 52.89 -30.64
PATKOL PCL-FORGN PATKL/F 52.89 -30.64
PATKOL PCL-NVDR PATKL-R 52.89 -30.64
PICNIC CORP-NVDR PICNI-R 101.18 -175.61
PICNIC CORPORATI PICNI/F 101.18 -175.61
PICNIC CORPORATI PICNI 101.18 -175.61
PONGSAAP PCL PSAAP/F 13.02 -1.77
PONGSAAP PCL PSAAP 13.02 -1.77
PONGSAAP PCL-NVD PSAAP-R 13.02 -1.77
SAHAMITR PRESS-F SMPC/F 27.92 -1.48
SAHAMITR PRESSUR SMPC 27.92 -1.48
SAHAMITR PR-NVDR SMPC-R 27.92 -1.48
SUNWOOD INDS PCL SUN 19.86 -13.03
SUNWOOD INDS-F SUN/F 19.86 -13.03
SUNWOOD INDS-NVD SUN-R 19.86 -13.03
THAI-DENMARK PCL DMARK 15.72 -10.10
THAI-DENMARK-F DMARK/F 15.72 -10.10
THAI-DENMARK-NVD DMARK-R 15.72 -10.10
TRANG SEAFOOD TRS 13.90 -3.59
TRANG SEAFOOD-F TRS/F 13.90 -3.59
TRANG SFD-NVDR TRS-R 13.90 -3.59
TT&T PCL TTNT 615.73 -210.36
TT&T PCL-NVDR TTNT-R 615.73 -210.36
TT&T PUBLIC CO-F TTNT/F 615.73 -210.36
TAIWAN
BEHAVIOR TECH CO 2341S 41.94 -1.02
BEHAVIOR TECH CO 2341 41.94 -1.02
BEHAVIOR TECH-EC 2341O 41.94 -1.02
CHIEN TAI CEMENT 1107 195.99 -57.35
HELIX TECH-EC 2479T 23.39 -24.12
HELIX TECH-EC IS 2479U 23.39 -24.12
HELIX TECHNOL-EC 2479S 23.39 -24.12
TAIWAN KOL-E CRT 1606U 507.21 -147.14
TAIWAN KOLIN-EN 1606V 507.21 -147.14
TAIWAN KOLIN-ENT 1606W 507.21 -147.14
VERTEX PREC-ENTL 5318T 42.24 -5.08
VERTEX PRECISION 5318 42.24 -5.08
*********
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 ***