/raid1/www/Hosts/bankrupt/TCRAP_Public/120112.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, January 12, 2012, Vol. 15, No. 9
Headlines
A U S T R A L I A
CHRIS AND MARIE'S: Creditors Furious on 6c Payout
RUNNYMEDE PROPERTY: Mayor Awaits Decision on Possible Foreclosure
SHADEPLAN PTY: Ferrier Hodgson Appointed as Administrators
SOLAR & BAMBOO: Bamboo Business Back in Business
C A M B O D I A
* CAMBODIA: Moody's Assigns 'B2' Long Term Issuer Ratings
C H I N A
CHINA FORESTRY: S&P Puts 'CCC-' Corp. Credit Rating on Watch Neg
WEST CHINA CEMENT: S&P Affirms 'BB-' Corporate Credit Rating
H O N G K O N G
MACMILLAN NEW: Members' Final Meeting Set for Jan. 30
MARITIME SQUARE: Kong Chi How Johnson Steps Down as Liquidator
MAX WEALTHY: Chan and Li Appointed as Liquidators
NATURE'S FARM: Creditors' Proofs of Debt Due Jan. 20
RAINBOW BRIDGE: Members' Final General Meeting Set for Feb. 6
I N D I A
AIR INDIA: Lenders Reject Debt Restructuring Package
AIR INDIA: Workers Plan to Go on Strike Over Delayed Salaries
AKULA BOARDS: CRISIL Assigns 'CRISIL D' Rating to INR120MM Loan
ASHAPURA APPARELS: CRISIL Rates INR7.5-Mil. Loan at 'CRISIL BB-'
GEETASTAR HOTELS: CRISIL Reaffirms 'CRISIL D' Term Loan Rating
JAIN COAL: CRISIL Assigns 'CRISIL BB' Rating to INR10MM LT Loan
KINGFISHER AIRLINES: Gets Reprieve on INR60cr Service Tax Arrears
KRISHNA COIL: CRISIL Reaffirms 'CRISIL BB+' Cash Credit Rating
KRS PHARMA: CRISIL Assigns 'CRISIL B' Rating on INR76.1MM Loan
MEDHAJ TECHNO: ICRA Places '[ICRA]BB' Rating on INR2cr Bank Loans
MOTHER'S PET: CRISIL Reaffirms 'CRISIL BB+' Term Loan Rating
NKB INFRASTRUCTURE: CRISIL Cuts Rating on INR21MM Loan to 'BB+'
SHREE SIDHBALI: ICRA Reaffirms '[ICRA]BB' Term Loan Rating
SILVER OAK: CRISIL Rates INR120.8-Mil. Term Loan at 'CRISIL B-'
SPAC TAPIOCA: CRISIL Reaffirms 'CRISIL BB+' Cash Credit Rating
VEERSHAIVA COOPERATIVE: Insolvency Prompts RBI to Cancel License
I N D O N E S I A
* INDONESIA: Moody's Gives (P)Ba1 Rating to Bond Issue Due 2042
* INDONESIA: S&P Assigns 'BB+' Rating on Global Sr. Bond
J A P A N
CORSAIR NO. 2: S&P Raises Rating on Portfolio F360 to 'BB-'
L-JAC FIVE: S&P Lowers Ratings on 5 Classes of Certs. to 'CC'
OLYMPUS CORP: Seeks JPY3.61-Bil. From 19 Execs for Losses
P A P U A N E W G U I N E A
* PAPUA NEW GUINEA: Moody's Assigns 'B1' Long Term Issuer Rating
S I N G A P O R E
* SINGAPORE: Bankruptcy Applications Likely to Have Risen in 2011
- - - - -
=================
A U S T R A L I A
=================
CHRIS AND MARIE'S: Creditors Furious on 6c Payout
-------------------------------------------------
Ben Butler at The Age reports that creditors of Chris and Marie's
Plant Farm group, a troubled nursery business run by one of
Victoria's best-known couples, Chris and Marie Lucas, are furious
with a deal that will see the couple pay back just 6› in each
dollar owed.
The Age relates that Mr. Lucas, famous for his pink tutu and
"hello hello" slogan, put the Chris and Marie's Plant Farm group
into administration on November 7 owing creditors about
AUD3 million, but regained control of the group on Christmas Eve.
According to The Age, administrators Andrew Yeo --
andrew.yeo@pitcher.com.au -- and Gess Rambaldi --
gess.rambaldi@pitcher.com.au -- of Pitcher Partners have told
creditors the nursery group had been insolvent since at least
late July 2010, and have referred the case to the corporate
regulator for possible investigation.
If dishonesty is involved, trading while insolvent can be a
criminal offence punishable by a fine of up to AUD220,000 and up
to five years' jail, the report relays.
Mr. Lucas said the allegation of insolvent trading was merely the
administrators' opinion. "I wouldn't have said so," Mr. Lucas
told The Age.
Despite their concerns, Mr. Yeo and Mr. Rambaldi recommended
control of the business be handed back to Mr. Lucas under a deed
of company arrangement, The Age reports.
"It's the toughest thing that I've had to do," the report quotes
Mr. Lucas as saying.
The Age relates that Mr. Lucas said the deal was in the interests
of his suppliers, because they will continue to receive orders
from Chris and Marie's.
"I think everybody comes out better in the long run, but there
are people who are hurt," Mr. Lucas told The Age.
Chris and Marie's Plant Farm -- http://www.hellohello.com.au/--
is a plant retail nursery.
RUNNYMEDE PROPERTY: Mayor Awaits Decision on Possible Foreclosure
-----------------------------------------------------------------
The North West Star reports that Richmond Mayor John Wharton is
waiting for a court decision on whether his family holdings
Runnymede and Red Rock are safe from foreclosure.
Mr. Wharton's family property Runnymede and Einasleigh district
holding Red Rock are under the control of financier Bank West and
receivers KordaMentha, following a recent foreclosure, according
to The North West Star.
The report relates that a proposal to refinance the debt, backed
by another bank, was put to Bank West by Mr. Wharton at a meeting
in Brisbane prior to Christmas.
"I have been quiet on the situation while the offer is being
considered . . . . But so many people have been ringing, wanting
to know what's happening; I feel I must at least say something to
put them in the picture. . . . I have an offer on the table to
enable us to walk away from Bank West," the report quoted Mr.
Wharton as saying.
SHADEPLAN PTY: Ferrier Hodgson Appointed as Administrators
----------------------------------------------------------
On Jan. 10, 2012, John Hart and Bruce Carter of Ferrier Hodgson
were appointed administrators of Shadeplan Pty Ltd, trading as
'Shadeplan', 'Shade Doctor' and 'Surfaceplan'.
The administrators now control the Company's assets and
operations and are assessing the Company's financial position.
The administrators are working with the Company's management team
to stabilize the business and explore options for its future
including a potential sale as a going concern.
A meeting of creditors for the Company will be held at Ferrier
Hodgson, Level 6, 81 Flinders Street, in Adelaide, South
Australia on Jan. 20, 2012 at 11:00 a.m. Teleconference
facilities will be available.
The administrators can be reached at:
John Hart
Bruce Carter
FERRIER HODGSON
Level 6
81 Flinders Street
Adelaide, SA 5000
E-mail: bruce.carter@fh.com.au
john.hart@fh.com.au
Shadeplan Pty Ltd, trading as 'Shadeplan', 'Shade Doctor' and
'Surfaceplan', manufactures and distributes canvas shade sails,
canvas sails, fabric shades, shadecloths, shade structures, and
tensile shades.
SOLAR & BAMBOO: Bamboo Business Back in Business
------------------------------------------------
Greg White at The Coffs Coast Advocate reports that the attention
of creditors was focused on Bamboo Direct Pty Ltd when doors
opened for trading on Monday.
The Coffs Coast Advocate relates that despite being under
administration and having several associated companies placed in
liquidation, Solar and Bamboo Direct managing director Pieter
McHeyzer will begin the task of trying to trade his business back
to profitability.
And his decision has the approval of Clout and Associates partner
David Morgan -- dmorgan@cloutassociates.com.au --, who is
handling the liquidation, the report says.
According to the report, the first of a series of creditors'
meetings was held in Coffs Harbour on Jan. 5 but Mr. Morgan
warned it's still "early days" in the legal process.
"The liquidation is still in its infancy and we are still
liaising with the interested parties as to a direction to go,"
the report quotes Mr. Morgan as saying. "The initial meetings
are to meet legal requirements and it's impossible to predict at
this stage how many will eventually be affected.
"The Department of Fair Trading also has its action under way so
it's still early days and not much more I can add."
Solar & Bamboo Direct was placed in liquidation late in December.
Solar & Bamboo Direct Managing Director Pieter McHeyzer said as
many as 20 staff were made redundant in the days leading up to
Christmas as the company succumbed to "a number of issues,"
according to the Coffs Coast Advocate. While the solar arms of
the business in Coffs Harbour and Tamworth will not survive, it
is hoped that the bamboo business will thrive, the report added.
Bamboo Direct is in voluntary administration and Mr. McHeyzer is
hoping it may be able to trade out of financial difficulty, the
report said.
Australian-based Solar & Bamboo Direct Pty. Ltd --
http://www.solarandbamboodirect.net.au/-- supplies and installs
sustainable building and renewable energy products.
===============
C A M B O D I A
===============
* CAMBODIA: Moody's Assigns 'B2' Long Term Issuer Ratings
---------------------------------------------------------
The following release represents Moody's Investors Service's
summary credit opinion on the Government of Cambodia and includes
certain regulatory disclosures regarding its ratings. This
release does not constitute any change in Moody's ratings or
rating rationale for the Government of Cambodia.
Moody's current ratings on Cambodia, Government of are:
Long Term Issuer (domestic and foreign currency) ratings of B2.
Ratings Rationale
Cambodia's B2 government bond rating is based on Moody's
assessment of very low economic resiliency. This is derived from
a structurally narrow economy based on agriculture, garment
exports, and tourism. Additionally, Cambodia's per capita income
is among the lowest of the countries rated by Moody's, data
transparency and timeliness is poor, and the country's governance
indicators, according to the World Bank, are also well below the
median for B-rated countries. Along with high dollarization,
which limits policy flexibility, these factors constrain the
country's intrinsic economic and institutional strengths.
The rating also incorporates weak financial robustness. Low
national savings and weak tax administration limit financial
depth. Cambodia depends on official creditor support for deficit
and debt financing. Although this has kept the government's
interest expenditures low and has reduced rollover risk,
government debt remains high relative to fiscal adjustment and
revenue mobilization capacity. This is reflected in a relatively
low interest-to-revenue ratio and high debt-to-revenue ratio.
Nonetheless, Cambodia is only modestly susceptible to endogenous
event risks. Donor financing and robust FDI inflows have
supported the balance of payments and have also helped the
economy to grow rapidly. The small size of the financial system
limits contingent liabilities to the government's balance sheet,
although rapid credit growth in recent years could eventually
introduce systemic risks if not well managed.
The stable outlook reflects robust growth prospects following the
mild contraction during the global financial crisis, balanced
against continued institutional weaknesses and an underdeveloped
capital market infrastructure. The external payments position is
stable with wide current account deficits being amply financed by
FDI and ODA. If sizable oil and gas reserves are developed in the
next several years, that would provide more structural support to
government finances.
The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2008.
=========
C H I N A
=========
CHINA FORESTRY: S&P Puts 'CCC-' Corp. Credit Rating on Watch Neg
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'CCC-' long-term
corporate credit rating on China Forestry Holdings Co. Ltd. and
the issue rating on the company's senior unsecured notes on
CreditWatch with negative implications. Standard & Poor's
also placed its 'cnCCC-' Greater China scale issuer credit rating
and issue rating on the senior unsecured notes on CreditWatch
with negative implications.
"The CreditWatch placement reflects our belief that KPMG's
resignation as auditor increases the likelihood of China Forestry
delaying its release of financial statements for the fiscal year
ended Dec. 31, 2011. The delay may trigger an acceleration of the
company's senior unsecured notes' payment if covenants are
breached," S&P said.
"If the payments on the notes are accelerated, China Forestry may
not be able to meet its outstanding US$180 million notes
repayment due to its 'weak' liquidity, as defined in our
criteria," S&P said.
"Given the complexity and materiality of the allegations of
accounting irregularities in China Forestry, we believe the next
auditor appointed may face significant challenges to complete the
auditing process without delaying the fiscal 2011 statements,"
said Standard & Poor's credit analyst Frank Lu.
According to the terms for the senior unsecured notes, China
Forestry may breach covenants if it fails to provide audited
financial statements and certification from the company and its
auditor verifying its fixed-charge coverage ratio within 120 days
of the 2011 year-end. If the covenants are breached, China
Forestry has a 30-day grace period, after which an event of
default will occur and noteholders can accelerate repayment.
"We aim to resolve the CreditWatch status within the next three
months. We will need more information on when China Forestry will
release its financial statements before resolving the
CreditWatch. We may lower the ratings to 'CC' if we believe the
likelihood of a covenant breach, leading to an acceleration on
note repayment, has increased materially," Mr. Lu said.
WEST CHINA CEMENT: S&P Affirms 'BB-' Corporate Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on the
long-term corporate credit rating on West China Cement Ltd. to
negative from stable. "At the same time, we affirmed the 'BB-'
long-term corporate credit rating, and the 'BB-' issue rating on
the company's outstanding senior unsecured notes. We also lowered
our Greater China scale rating on the company and its notes to
'cnBB' from 'cnBB+'," S&P said.
"We revised the outlook on WCC because we expect the company's
profitability to deteriorate," said Standard & Poor's credit
analyst Lawrence Lu. "We also expect WCC's working capital
requirements to increase and its capital expenditure to remain
high as it aggressively adds capacity."
"Lower demand and intense price competition will continue to eat
into WCC's profit margin in 2012, in our view. Delays in railway
and highway construction projects in China's Shaanxi province
have resulted in weaker demand for higher-grade cement. WCC has
therefore shifted focus to lower-grade lower-margin products used
in the rural construction market to maintain its satisfactory
capacity utilization. Heavy rains in Shaanxi province, which
accounts for more than 97% of the company's adjusted production
capacity, also resulted in lower demand for cement," S&P said.
"We believe WCC's competitiveness is weakening as larger and more
geographically diversified competitors enter Shaanxi. Competitors
include Anhui Conch Cement Co. Ltd. (not rated) and Tangshan
Jidong Cement Co. Ltd. (not rated). These new entrants are
financially stronger than WCC and have resorted to aggressive
pricing (in some cases at below cost) to garner market share.
Prolonged price competition could further depress WCC's
profitability," S&P said.
"We expect WCC to continue to generate sizable negative free
operating cash flow in 2012, increasing its reliance on debt. We
also anticipate that the company's working capital requirements
may continue to increase given that the domestic credit market
remains tight and the demand for cement is weakening. In
addition, WCC incurred substantial capital expenditure to expand
its capacity (including acquisitions) in 2011. The company's
capital expenditure will remain fairly high in 2012 as well. WCC
targets increasing its production capacity to 25 million-30
million tons by 2015, from 16.2 million tons as of June 30,
2011," S&P said.
"The negative outlook reflects our expectation that the operating
environment for WCC will stay challenging in 2012 and that the
company's profit margin will remain pressured," S&P said.
"We may lower the rating if WCC's financial leverage increases to
more than 4x and remains there. This could happen if cement
prices and demand are weaker than we expected with no signs of
improvement," said Mr. Lu. "We could also lower the rating if the
company's expansion is more aggressive than we anticipated and is
largely debt funded."
"We may revise the outlook to stable if the operating environment
in Shaanxi stabilizes such that WCC maintains an EBTIDA margin of
more than 30% and a debt-to-EBITDA ratio of less than 3x. A
stable environment should translate into greater visibility on
price and demand," S&P said.
================
H O N G K O N G
================
MACMILLAN NEW: Members' Final Meeting Set for Jan. 30
-----------------------------------------------------
Members of Macmillan New Asia Publishers Limited will hold their
final meeting on Jan. 30, 2012, at 10:00 a.m., at Room 403, 4/F,
Wing On House, at 71 Des Voeux Road Central, in Hong Kong.
At the meeting, Tam Chun Wan, the company's sole liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
MARITIME SQUARE: Kong Chi How Johnson Steps Down as Liquidator
--------------------------------------------------------------
Kong Chi How Johnson stepped down as liquidator of Maritime
Square Treasure Seafood Restaurant Limited on Dec. 23, 2011.
MAX WEALTHY: Chan and Li Appointed as Liquidators
-------------------------------------------------
Chan Chi Bor and Li Fat Chung on Dec. 30, 2011, were appointed as
liquidators of Max Wealthy Limited.
The liquidators may be reached at:
Chan Chi Bor
Li Fat Chung
Unit 402, 4/F
Malaysia Building
No. 50, Gloucester Road
Wanchai, Hong Kong
NATURE'S FARM: Creditors' Proofs of Debt Due Jan. 20
----------------------------------------------------
Creditors of Nature's Farm Products Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Jan. 20, 2012, to be included in the company's dividend
distribution.
The company's liquidator is:
Stephen Liu Yiu Keung
c/o 62/F, One Island East
18 Westlands Road
One Island East
Hong Kong
RAINBOW BRIDGE: Members' Final General Meeting Set for Feb. 6
-------------------------------------------------------------
Members of Rainbow Bridge Trading Limited will hold their final
general meeting on Feb. 6, 2012, at 5:45 p.m., at Level 28, Three
Pacific Place, at 1 Queen's Road East, in Hong Kong.
At the meeting, Susan Y H Lo, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
=========
I N D I A
=========
AIR INDIA: Lenders Reject Debt Restructuring Package
----------------------------------------------------
The Economic Times reports that lenders have rejected the debt
recast package for Air India Ltd, dealing a big blow to its
chances of a quick recovery and forcing its advisor SBI Caps to
go back to the drawing board to chart a new plan to revive the
beleaguered airline.
Banks attending a meeting in Mumbai on Tuesday told SBI Caps that
they cannot accept the proposal in its current form as it forces
them to set apart more money as provisioning, especially for
preference shares, according to the report.
Under the package, the Economic Times relates, banks were
supposed to subscribe to preference shares worth INR7,408 crore.
Provisioning refers to setting aside capital for risky assets.
The Economic Times says the meeting also underscored the
simmering tensions between SBI, the country's largest bank, and
other lenders. Though the restructuring package was supposed to
apply to all lenders, preference shares were not issued to SBI,
leading to lower provisioning for the bank, the report notes.
According to the report, the move is bad news for Air India,
which is struggling to lower its debt burden, improve service and
compete with other private sector airlines. The loan
restructuring is a major part of the overall revival package that
includes more government investment in the airline's equity, says
ET.
The banks' consent for the financial restructuring plan is
crucial for it to move forward and time is running out for Air
India, an airline official told ET.
"We have kept the salaries of employees on hold so that the
interest to the banks could be serviced on time. We can only
service interest till January 31 after that the banks can look at
classifying Air India loans as NPAs as we cannot bear the further
burden of INR250 crore per month in interest costs now and we
need the equity infusion fast," the report quotes the AI official
as saying.
Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world. Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle
East, and Air India Cargo provides freight transportation. The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on
domestic routes. The combined airline, part of a new holding
company called National Aviation Company of India, uses the Air
India brand. The new Air India and its affiliates have a fleet
of more than 110 aircraft altogether.
* * *
The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been
bleeding cash due to excess capacity, lower yield, a drop in
passenger numbers, an increase in fuel prices and the effects of
the global slowdown. The carrier incurred net losses of
INR2,226.16 crore in 2007-08 and INR5,548 crore in 2008-09. Air
India is estimated to have lost INR54 billion in the fiscal year
ended March 31, 2010, according to The Wall Street Journal.
AIR INDIA: Workers Plan to Go on Strike Over Delayed Salaries
-------------------------------------------------------------
The Economic Times reports that Air India Ltd will see fresh
round of agitation by employees as Aviation Industry Employees
Guild, the union which represents close to 8,000 employees, has
threatened to go on strike from January 14 in protest against the
delay in payment of salaries.
Employees of the national carrier have not been paid salaries for
the last two months, the report says. The union has served a
notice on the chief labour commissioner, seeking to start the
strike if the Air India management is not ready to pay salaries
on time, according to the report.
"If the management can strictly implement 'no work, no pay'
principle then in all fairness we should be entitled to adopt 'no
pay, no work'. We ask all our employees to be in readiness for
any form of agitation including strike to press for payment,"
said the notice which was reviewed by ET.
According to the report, the airline has also not paid sustenance
allowance and productivity-linked incentives, to employees for
five months. Cabin crew, who get 70% of their salaries in the
form of sustenance allowance, is struggling to survive as they
travel frequently to international destinations, the report
notes.
ET relates that the first sign of turmoil erupted on Monday as 89
flight attendants, who were rostered on international flights,
refused to fly. More than 100 cabin crew did not report to work.
This is bound to grow as more cabin crew is likely to join the
agitation shortly, employees close to Air India employees unions
told ET.
A joint meeting of the various employees unions was also held on
January 8, forcing the management to release part of salaries,
the report says. Air India CMD Rohit Nandan is meeting
representatives of unions on Tuesday to discuss issues relating
to pay parity and non-payment of salaries. The new civil aviation
minister Ajith Singh is likely to meet the union represenatives
this week to resolve the crisis, ET adds.
Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world. Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle
East, and Air India Cargo provides freight transportation. The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on
domestic routes. The combined airline, part of a new holding
company called National Aviation Company of India, uses the Air
India brand. The new Air India and its affiliates have a fleet
of more than 110 aircraft altogether.
* * *
The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been
bleeding cash due to excess capacity, lower yield, a drop in
passenger numbers, an increase in fuel prices and the effects of
the global slowdown. The carrier incurred net losses of
INR2,226.16 crore in 2007-08 and INR5,548 crore in 2008-09. Air
India is estimated to have lost INR54 billion in the fiscal year
ended March 31, 2010, according to The Wall Street Journal.
AKULA BOARDS: CRISIL Assigns 'CRISIL D' Rating to INR120MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the bank facilities
of Akula Boards Ltd. The rating reflects instances of delay by
Akula in servicing its term loan; the delays have been caused by
the company's weak liquidity.
Facilities Ratings
---------- -------
INR120 Million Term Loan CRISIL D (Assigned)
INR80 Million Cash Credit CRISIL D (Assigned)
INR30 Million Letter of Credit CRISIL D (Assigned)
Akula also has a weak financial risk profile, marked by weak
capital structure. The company, however, benefits from the
entrepreneurial experience of the company's promoters.
About Akula Boards
Akula commenced operations in 2008; it manufactures writing and
printing paper and newsprint paper. The company is promoted by
Mr. A G V V N Satyanarayana and his family. Its manufacturing
facilities, located in Tanuku (Andhra Pradesh), have capacity of
45 tonnes per day.
Akula reported a net loss of INR25 million on net sales of INR283
million for 2010-11 (refers to financial year, April 1 to
March 31) as against a net loss of INR6 million on net sales of
INR177 million for 2009-10.
ASHAPURA APPARELS: CRISIL Rates INR7.5-Mil. Loan at 'CRISIL BB-'
----------------------------------------------------------------
CRISIL has assigned 'CRISIL BB-/Stable' rating to the bank
facilities of Ashapura Apparels Private Limited.
Facilities Ratings
---------- -------
INR7.5 Million Term Loan CRISIL BB-/Stable (Assigned)
INR180 Million Cash Credit CRISIL BB-/Stable (Assigned)
The rating reflects AAPL's established presence and extensive
experience of its promoter in the readymade garment industry.
These rating strengths are partially offset by the moderate
financial risk profile of the company, reflected in its modest
networth, high gearing levels and subdued debt protection
indicators coupled with the working capital intensive nature of
its operations.
Outlook: Stable
CRISIL expects Ashapura Apparels Private Limited to maintain a
stable business risk profile on the back of established market
presence & long standing experience of the promoters in the
readymade garments industry. The outlook may be revised to
'Positive' if the company is able to exhibit a significant
improvement in its capital structure and debt protection
indicators while maintaining a steady revenue growth and
profitability. The outlook may be revised to 'Negative' if the
company's financial risk profile deteriorates due to larger-than-
anticipated debt-funded capex programmes or if the company
suffers a significant decline in its revenues or profitability.
About Ashapura Apparels
Incorporated in the year 1999 by Mr. Harshad Thakkar, a Mumbai
based entrepreneur, Ashapura Apparels Private Limited is engaged
in manufacturing of readymade garments which include loungewear,
home wear and sportswear. The products are marketed under two
brands 'Valentine' and 'Night Line'. AAPL also exports its
products, majorly to Middle East countries. The day to day
operations of the company are currently managed by Mr. Harshad
Thakkar. AAPL has its manufacturing facility located at Bhiwandi,
Maharashtra with a capacity to manufacture 1 million garments
annually.
AAPL reported a profit after tax (PAT) of INR13.97 million on net
sales of INR504.67 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR4.22 million on net
sales of INR242.91 million for 2009-10.
GEETASTAR HOTELS: CRISIL Reaffirms 'CRISIL D' Term Loan Rating
--------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of Geetastar Hotels & Resorts Pvt. Ltd. at 'CRISIL D'. The rating
continues to reflect instances of delay on the part of GHRPL in
servicing its debt due to the company's insufficient cash flows
from its hotel's operations.
Facilities Ratings
---------- -------
INR5.0 Million Overdraft CRISIL D (Reaffirmed)
INR140.0 Million Term Loan CRISIL D (Reaffirmed)
GHRPL also has a weak financial risk profile, marked by a small
net worth, high gearing, and weak debt protection metrics. The
rating also factors in the susceptibility of the company's
margins to cyclicality in the hospitality industry. These rating
weaknesses are partially offset by the extensive industry
experience of GHRPL's promoters.
Update
GHRPL generated revenue of INR99.5 million in 2010-11 (refers to
financial year, April 1 to March 31), its first full year of
operations; this was substantially lower than expectations. The
low revenue was primarily due to lower occupancy rates. Though
GHRPL clocked an operating profit of INR31.6 million for 2010-11,
interest outflows of a similar amount has resulted in meager
accruals of around INR1.3 million.
GHRPL opened a gymnasium and spa in the hotel during February
2011 with an outlay of INR0.4 million, funded via unsecured loans
extended by the promoters. The company is expected to open a new
restaurant by end of 2011-12 with an outlay of INR0.5 million.
The hotel's management continues to be completely outsourced to
Concept Hospitality Pvt Ltd (CHPL). CHPL continues to look after
the entire operations and marketing aspect of the hotel. CHPL is
in talks with airline operators, such as Jet Airways, Air India,
and travel agents for long-term contracts. There are no major
capital expenditure plans over the medium term.
GHRPL's banker (Bank of Baroda) has rescheduled the INR140
million term loan issued to GHRPL starting from February 15,
2011, with ballooning quarterly repayments. However, due to weak
accruals, the company continues to delay servicing the interest
and principal repayments post the re-schedulement as well.
GHRPL's promoters have increased the unsecured loans to
INR32.2 million as on December 23, 2011 currently from INR26.7
million as on March 31, 2011. These additional funds of around
INR0.5 million have gone towards meeting shortfalls in servicing
debt, though delayed. The average bank limit utilization for the
13 months ended September 2011, was more than 90 per cent.
For 2010-11, GHRPL reported a net loss of INR39.6 million on net
sales of INR99.5 million, as against a net loss of INR16.1
million on net sales of INR43.9 million for 2009-10.
About Geetastar Hotels
GHRPL, formerly St. Bhikshu Infrastructure Pvt Ltd, runs a three-
star hotel, The Fern, in Jaipur (Rajasthan). The company has tied
up with the Concept Hospitality group for operating the hotel.
GHRPL began construction of the hotel in 2005 and commenced
commercial operations in December 2009. For funding the total
project cost of around INR409 million, the promoters infused
around INR150 million as equity and extended around INR19 million
as unsecured loans. The remaining amount of around INR240 million
was funded through long-term loans: INR140 million from Bank of
Baroda and INR100 million from Rajasthan State Industrial
Development & Investment Corporation Ltd.
GHRPL is part of the Udai Kant Misra and Sons group, which has a
large land bank in and around Jaipur.
JAIN COAL: CRISIL Assigns 'CRISIL BB' Rating to INR10MM LT Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of Jain Coal Services.
Facilities Ratings
---------- -------
INR100 Million Cash Credit CRISIL BB/Stable (Assigned)
INR10 Mil. Proposed Long-Term CRISIL BB/Stable (Assigned)
Bank Loan Facility
INR290 Million Letter of Credit CRISIL A4+ (Assigned)
The ratings reflect the extensive experience of JCS' partners in
the coal industry. This rating strength is partially offset by
exposure to volatility in coal prices.
Outlook: Stable
CRISIL believes that JCS will continue to benefit over the medium
term from the healthy demand for coal and its established
customer relationships. The outlook may be revised to 'Positive'
if the firm reports significantly higher-than-expected growth in
revenues and earnings, while maintaining its debt protection
metrics. Conversely, the outlook may be revised to 'Negative' if
JCS' financial risk profile deteriorates because of substantially
lower-than-expected profitability or revenues or significant
deterioration in working capital cycle.
About Jain Coal
JCS was established in 1991 as a partnership firm by Nagpur-based
Jain family; currently, the firm has eight partners all belonging
to the Jain family. JCS trades in coal, which it procures from
Coal India Ltd and its subsidiaries. JCS' clientele includes
Avinash Fuels Pvt Ltd, Godawari Biorefineries Ltd, and GS Oil
Ltd. JCS' stock depots are located in Wani, Chandrapur (both in
Maharashtra), and Nagpur and its registered office is in Nagpur.
JCS reported a profit after tax (PAT) of INR19.8 million on net
sales of INR953.6 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR8.5 million on net
sales of INR679.4 million for 2009-10.
KINGFISHER AIRLINES: Gets Reprieve on INR60cr Service Tax Arrears
-----------------------------------------------------------------
The Times of India reports that Kingfisher Airlines got a
breather from the finance ministry till March 2012 to pay up its
service tax arrears of INR60 crore. The concession was given
after the ailing private airlines paid INR20 crore, clearing its
dues for December 2011 and part of the arrears, the report
relates.
According to the report, Central Board of Excise and Customs
chairman S K Goel said Kingfisher Airlines paid INR10 crore in
December and another installment of INR10 crore in January 2012,
clearing its dues for December 2011.
Mr. Goel, however, said the biggest defaulter was Air India which
had service tax dues of INR300 crore, of which it had only paid
INR10 crore and had made no commitment of any further payments,
the report relays.
"Air India has said it will clear up arrears only after the
government infuses fresh equity in the official aircraft," the
report quotes Mr. Goel as saying. He added the department was
not initiating any action against the official carrier like what
it had done in case of Kingfisher, the report relates.
About Kingfisher Airlines
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops. It maintains bases in major cities such as Delhi and
Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known
for its United Breweries unit, and the carrier shares the
Kingfisher brand with a popular Indian beer. UB Holdings also
owns a stake in another domestic carrier, Air Deccan, whose
operations it combined with Kingfisher Airlines in mid-2008.
Kingfisher Airlines began flying in 2005.
* * *
Kingfisher Airlines lost money six years in a row, accumulating
net debt of INR77.2 billion (US$1.74 billion) as of March 2010,
according to data compiled by Bloomberg.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 16, 2011, The Economic Times said Kingfisher Airlines Ltd.
has found itself parrying questions about its survival after its
auditor raised doubts over the company's ability to stay in
business for long. Audit firm BK Ramadhyani & Co, which
examined the books of the airline, said in remarks published in
the airline's annual report that Kingfisher's ability to remain a
"going concern" will depend on its promoters bringing in money
into the company. The auditors also said Kingfisher has not
deposited with the government money it collected from employees
as tax deducted at source and provident fund contribution,
painting a dire picture of the airline's finances, The Economic
Times reported.
KRISHNA COIL: CRISIL Reaffirms 'CRISIL BB+' Cash Credit Rating
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Krishna Coil Cutters
Pvt Ltd continue to reflect the extensive experience of KCCL's
promoters in the steel business and the support it receives from
its associate company, Krishna Sheet Processors Pvt Ltd (KSPL;
rated 'CRISIL BBB/Stable/CRISIL A3+').
Facilities Ratings
---------- -------
INR100.0 Million Cash Credit CRISIL BB+/Stable
(Reaffirmed)
These rating strengths are partially offset by KCCL's below-
average financial risk profile, marked by high gearing and weak
debt protection metrics, and susceptibility of operating margin
to volatility in steel prices and fragmented business segment.
Outlook: Stable
CRISIL believes that KCCL's financial risk profile will remain
constrained over the medium term on account of its working
capital intensity, and the company will be dependent on the
support from KSPL. The outlook may be revised to 'Positive' if
KCCL's financial risk profile improves, most likely due to
sizeable equity infusion correcting the capital structure.
Conversely, the outlook may be revised to 'Negative' if KCCL's
profitability declines, or if the working capital cycle stretches
impacting its liquidity profile.
About Krishna Coil
Incorporated in 2007, KCCL processes hot-rolled and cold-rolled
steel sheets, which are used in automobiles, construction, steel
furniture, and electric panels. Its manufacturing unit is located
in Barejagaon (Gujarat) and the company caters to the Gujarat
market. The current management team comprises first-generation
entrepreneurs, with each member having more than 30 years of
relevant industry experience.
For 2010-11 (refers to financial year, April 1 to March 31), KCCL
reported a profit after tax (PAT) of INR8.8 million on net sales
of INR1.2 billion, as against a PAT of INR6.2 million on net
sales of INR877.4 million for 2009-10.
KRS PHARMA: CRISIL Assigns 'CRISIL B' Rating on INR76.1MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of KRS Pharmaceuticals Pvt Ltd.
Facilities Ratings
---------- -------
INR76.1 Million Term Loan CRISIL B/Stable (Assigned)
INR15 Million Cash Credit CRISIL B/Stable (Assigned)
INR5 Million Bank Guarantee CRISIL A4 (Assigned)
The ratings reflect KPPL's modest scale of operations coupled
with high customer concentration in its revenue profile, and
working-capital-intensive nature of its operations. These rating
weaknesses are partially offset by the extensive experience of
KPPL's promoters in the pharmaceuticals industry.
Outlook: Stable
CRISIL believes that KPPL will benefit over the medium term from
its promoters' extensive experience in the pharmaceuticals
industry. The outlook may be revised to 'Positive' if the company
reports substantial growth in its scale of operations and
profitability, while improving its working capital cycle.
Conversely, the outlook may be revised to 'Negative' if the
company's financial risk profile deteriorates due to further
lengthening of its operating cycle or if the company suffers a
sharp decline in its revenues or profitability.
About KRS Pharmaceuticals
Incorporated in the year 2004, KPPL is engaged in manufacturing
of bulk drugs and intermediates. The company is currently managed
by Mr. B. Narendra and Mr. B. L. Swamy. Its manufacturing unit in
Hyderabad (Andhra Pradesh [AP]) has an installed capacity of 70.2
tonnes per annum. KPPL also plans to manufacture high-end
pharmaceutical molecules for which it is currently setting up a
new plant at Vishakhapatnam (AP).
KPPL reported a profit after tax (PAT) of INR2.6 million on net
sales of INR28.58 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR2.84 million on net
sales of INR18.98 million for 2009-10.
MEDHAJ TECHNO: ICRA Places '[ICRA]BB' Rating on INR2cr Bank Loans
-----------------------------------------------------------------
ICRA has assigned '[ICRA]BB' rating to the INR2.0 crores fund
based limits and INR8.0 crores non-fund based limits of Medhaj
Techno Concepts Private Limited. The outlook on the long-term
rating is stable.
The rating takes into account the limited track record of MTCPL
which may limit its ability to secure additional contracts and
references, which are of essence in the consulting domain. The
rating is also constrained by intense competition which MTCPL
faces from other players as well as the significant sectoral
concentration risk arising out of its focus on one sector namely
power. Further, the company's dependence on a few large orders
(with top three orders accounting for two-thirds of its current
order book position) exposes it to delays and execution risks in
these contracts. Moreover, adverse operating environment in the
power sector may result in slowdown in new projects inception
which may in turn result in adverse impact on revenues of power
sector consulting companies, including MTCPL. Nevertheless the
rating positively factors in the favorable financial risk profile
of MTCPL characterized by healthy profitability, moderate debt
levels and healthy coverage indicators and repeat orders secured
by the company reflecting positively on its rack record. Though
the debtor days of the company have been high, the company has
positive fund flow from operations in the last three years. Going
forward, the company's ability to maintain operating margins in
competitive environment and keep its attrition at manageable
levels will be critical in sustaining its competitive business
profile.
About Medhaj Techno
Medhaj Techno Concepts Private Limited was founded in 2007. The
company is promoted by Mr. Samir Tripathi who has done B.Tech
(Electrical Engineering) from Lucknow and has worked in companies
like L&T, Siemens. Mr. Samir is the majority share-holder in the
company with 92% share-holding. He is assisted by his wife, Mrs.
Alka Tripathi who holds 8% share in the company and is also one
of the directors of MTCPL. The day to day operations of MTCPL are
managed by a professional team.
The company provides fully integrated consultancy services in the
power sector. The company has done consultancy for works done
under Rajeev Gandhi Gramin Viduyikaran Yojna (RGGVY) and
Restructured Accelerated Power Development and Reforms Programme
(R-APDRP). The scope of services provided by MTCPL include
project management consultancy, third party inspection, due
diligence, feasibility studies, detailed project reports,
detailed drawing and engineering, procurement assistance,
geotechnical studies and surveys, environment impact assessment
and supervisory activities
MTCPL reported a net profit of INR3.37 crore on an operating
income of INR16.35 crore for the year ended March 31st, 2011 , as
compared to a net profit of INR1.82 crore on an operating income
of INR10.53 crore for the year ended March 31st, 2010.
MOTHER'S PET: CRISIL Reaffirms 'CRISIL BB+' Term Loan Rating
------------------------------------------------------------
CRISIL's rating on the bank facilities of Mother's Pet
Kindergarten (part of the Mother's Pet group) continues to
reflect the Mother's Pet group's healthy financial risk profile,
marked by low gearing and strong debt protection metrics, and
established market position in the pre-nursery education sector
in Nagpur (Maharashtra).
Facilities Ratings
---------- -------
INR74.3 Mil. Rupee Term Loan CRISIL BB+/Stable (Reaffirmed)
INR0.7 Mil. Proposed Long-Term CRISIL BB+/Stable (Reaffirmed)
Bank Loan Facility
These rating strengths are partially offset by the group's
relatively small scale of operations and exposure to risks
associated with its ongoing capacity expansion project.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of MPKG and Nagpur Estates Pvt Ltd. The
entities are together referred to as the Mother's Pet group. This
is because the entities are under a common management and have
fungible cash flows. Moreover, NEPL, which is the in-house
construction company of the Mother's Pet group, constructs
buildings used by MPKG and Centre Point Schools (CPS).
Outlook: Stable
CRISIL believes that MPKG will maintain its business risk profile
over the medium term, supported by its established brand
positioning in the pre-nursery education segment in Nagpur. The
firm is also likely to maintain its healthy financial risk
profile, supported by strong debt protection metrics, over the
medium term. The outlook may be revised to 'Positive' if the firm
increases its revenues and improves its profitability by way of
increasing its student strength or fees significantly.
Conversely, the outlook may be revised to 'Negative' if the
firm's financial risk profile weakens, most likely caused by a
decline in cash flows, and consequently debt protection metrics,
because of time or cost overrun in its ongoing capacity expansion
project, resulting in less-than-expected student intake, or if
the firm makes large investments in group entities resulting in
weakening in its financial risk profile.
Update
The Mother's Pet group's operational performance in 2010-11
(refers to financial year, April 1 to March 31) was in line with
CRISIL's expectation; the group's financial risk profile remains
healthy.
In 2010-11, the group achieved a turnover of about INR123
million, against CRISIL's expectation of INR130 million. The
sales of the group increased marginally to INR123 million in
2010-11 from INR100 million in 2009-10. The fees payable per
student has gone up to INR40,000 per student per annum from
INR35,000 per student per annum for new students. The group's
financial risk profile has improved and remains healthy,
supported by low gearing, strong debt protection metrics and
moderate net worth. Its gearing improved to 0.47 times as on
March 31, 2011 (CRISIL's expectation 0.7 times) from 0.39 times
as on March 31, 2010, and is expected to remain below 1.0 time,
backed by the absence of any debt-funded capital expenditure
(capex) plan for the medium terms. CRISIL believes the Mother's
Pet group's financial risk profile will remain healthy, supported
by low gearing and healthy cash accruals, in the medium term. In
line with the low gearing, debt protection metrics have remained
healthy, with interest coverage ratio of 12 times and net cash
accruals to total debt (NCATD) ratio of 58 per cent for 2010-11
(23 times and 85 per cent respectively for 2009-10).
The group's net worth remained moderate, at about INR220 million
as on March 31, 2011, as against CRISIL's expectation of about
INR160 million - it was larger than expected because of increased
accretion to reserves (Rs.140 million as on March 31, 2010).
MPKG's expansion of Dhaba branch (Nagpur) is nearing completion,
while the expansion of the branch in Wardhaman Nagar (Nagpur)
which is being undertaken by NEPL, is almost complete. Out of the
four buildings in Wardhaman Nagar, three are fully functional.
Three floors of the fourth building are already occupied and
functional and the construction of the fourth floor will be
completed within a month; however, the floor will be transferred
for use to MPKG or CPS just before the start of next academic
year. The group's management has further expansion plans, which
are in their nascent stages; therefore, CRISIL has not factored
in such plans for this rating exercise. However, any diversion of
funds towards group entities, resulting in deterioration in
financial risk profile, will adversely impact the group's credit
risk profile.
MPKG reported a provisional profit before tax (PBT) of INR23
million on provisional net sales of INR85 million for 2010-11
(refers to financial year, April 1 to March 31), against a PBT of
INR20 million on net sales of INR70 million for 2009-10.
About the Group
MPKG is a proprietorship concern, founded by Mrs. Aruna Upadhyay
in 1979. MPKG offers pre-school education for children between
two and five years of age, in four classes - pre-nursery,
nursery, lower kindergarten (KG-I) and upper kindergarten (KG-
II). It has four branches in Nagpur with combined student
strength of around 2500. Mrs. Aruna Upadhyay has also started
three schools under the CPS brand, which are run by Mother's Pet
Education Society (MPES); Mrs. Aruna Upadhyay is the chairperson
of the society. The students of MPKG get direct admission to CPS
after KG-II. NEPL is a construction company; it constructs
buildings for MPKG and CPS.
NKB INFRASTRUCTURE: CRISIL Cuts Rating on INR21MM Loan to 'BB+'
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank facility of NKB
Infrastructure Pvt Ltd to 'CRISIL BB+/Stable/CRISIL A4+' from
'CRISIL BBB-/Stable/CRISIL A3'.
Facilities Ratings
---------- -------
INR380.0 Mil. Cash Credit CRISIL BB+/Stable (Downgraded
(Enhanced from INR160.0 Mil.) from 'CRISIL BBB-/Stable')
INR21.0 Million Term Loan CRISIL BB+/Stable (Downgraded
(Reduced from INR30 Million) from 'CRISIL BBB-/Stable')
INR39.0 Million Proposed Long CRISIL BB+/Stable (Downgraded
Term Bank Facility from 'CRISIL BBB-/Stable')
INR160.0 Million Bank Guarantee CRISIL A4+ (Downgraded from
(Enhanced from INR40.0 Million) 'CRISIL A3')
The rating downgrade reflects NKB's stretched liquidity profile
marked by tightly matched net cash accruals vis-…-vis its
repayment obligations estimated in 2011-12 (refers to financial
year, April 1 to March 31) and by high bank limit utilisation, on
account of increased scale of operations, leading to high working
capital requirements, which were largely funded through
incremental bank borrowings. NKB's gearing in 2010-11 has also
deteriorated beyond CRISIL's expectations post debt-funded capex
incurred during the year. The downgrade also reflects the
expected further deterioration in NKB's financial risk profile
due to debt-funded capital expenditure (capex) plans in 2012-13
towards setting up of new crushing units in Rajasthan with total
estimated cost of around INR100 million, and incremental working
capital requirements, coupled with deterioration in its liquidity
due to modest cash accruals.
The ratings reflect NKB's advantageous position in the stone
crushing industry because of its ownership of open-cast mines and
diversification in revenue stream, with gradual forward
integration into road construction. These rating strengths are
partially offset by NKB's weak debt protection metrics and large
working capital requirements.
Outlook: Stable
CRISIL believes that NKB will continue to benefit from its
conservative capital structure and established position in the
stone-crushing industry, over the medium term. The outlook may be
revised to 'Positive' if NKB improves its operating efficiencies
or bags contracts for road construction. Conversely, the outlook
may be revised to 'Negative' if NKB undertakes a large, debt-
funded capex programme, or if its operations are interrupted by
adverse weather or unfavourable government policies.
About NKB Infrastructure
Set up in 1970 as Mewat Grit Udyog, a partnership firm, by Mr. N
K Gupta, NKB was reconstituted as a private limited company in
March 2011. NKB undertakes contracts for stone crushing,
manufacturing construction material, and constructing roads. NKB
owns five stone quarries in Rajasthan and three in Haryana. NKB
has six stone crushing units in Rajasthan and two in Haryana,
besides two wet-mix macadam and granular sub-base (GSB) plants,
and has an overall installed capacity of 9000 tonnes per day for
crushing stones. NKB's customers comprise regional builders and
contractors as well as various public sector clients such as
Northern Railways and Kalindee Rail Nirman Engineering Ltd. NKB
also constructs roads as a contractor for quasi-state government
bodies such as Rajasthan State Industrial Development &
Investment Corporation Ltd.
NKB reported a net profit of INR14.8 million on net sales of
INR2083.8 million for 2010-11, as against a profit after tax of
INR10.7 million on net sales of INR1518.5 million for 2009-10.
SHREE SIDHBALI: ICRA Reaffirms '[ICRA]BB' Term Loan Rating
----------------------------------------------------------
ICRA has reaffirmed '[ICRA]BB' rating to the INR6.80 crores term
loans and INR3.00 crores fund based limits of Shree Sidhbali
Paper Mills Limited. The outlook on the long-term rating is
stable.
The rating reaffirmation takes into account the intensely
competitive and cyclical nature of the paper industry and SSPML's
presence into a single paper segment, namely kraft paper, which
is a relatively low value added product and faces competition
from unorganized players. These factors, coupled with the
moderate scale of operations (thereby resulting in modest
economies of scale) and the high depreciation and interest costs
(owing to debt funded expansion) have resulted in below average
net margins and return indicators and this situation is unlikely
to change significantly in the medium term. Further, the gearing
of the company has increased in FY11 (owing to debt-unded capex
incurred by the company) which coupled with weak profitability
indicators and accrual levels have resulted in moderate coverage
indicators. The ratin also factors in the decline in capacity
utilisation of the company in FY11 on account of frequent
interruption in production and stoppage of work as the company
was implementing an expansion project. Nevertheless, the rating
draws comfort from SSPML's experienced management with long track
record in the paper business, healthy operating profitability on
account of increasing sales realisation and adequate raw material
supply near its manufacturing facility.
About Shree Sidhbali
Shree Sidhbali Paper Mills Limited was incorporated in 1980 as a
private limited company under the name Adarsh Papierfabrik
Private Limited for manufacturing paper. In 1992, the company was
converted into a public limited company. Till 2000, the company
did not start any commercial activity. In December 2000, the
Board of Directors decided to set up a paper mill for
manufacturing of Newsprints. The company purchased land and
building and machinery of Gold Star Straw Products Limited from
Uttar Pradesh Financial Corporation for a consideration of
INR5.15 crores.
The management was not able to run the unit successfully due to
financial tightness and low utilisation of the installed
capacity. The company was taken over Mr. Raghu Raj Garg, Mr.
Ravindra Kumar Bansal, Mr. Kapil Garg, Mr. Sumit Agarwal and Mr.
Mayur Garg who also took charge of the board. The name of the
company was changed to Shree Sidhbali Paper Mills Limited. The
company is currently involved in manufacturing of kraft paper and
has an installed capacity of 23,250 MTPA.
In FY11, SSPML reported net profit of INR0.15 crore on an
operating income of INR23.81 crores as compared to net profit of
INR0.16 crore on an operating income of INR24.96 crores in FY10.
SILVER OAK: CRISIL Rates INR120.8-Mil. Term Loan at 'CRISIL B-'
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to term loan
facility of Silver Oak Shops & Office Co-operative Housing
Society Ltd.
Facilities Ratings
---------- -------
INR120.8 Million Term Loan CRISIL B-/Stable (Assigned)
The rating reflects Silver Oak's limited track record and
susceptibility to intense competition; the rating also factor in
the company's average financial risk profile marked by less-than-
adequate cash accrual generation. These rating weaknesses are
partially offset by the promoters' funding support and the
healthy demand prospects for education in India.
Outlook: Stable
CRISIL believes that Silver Oak will continue to benefit over the
medium term from its promoters' funding support and the healthy
demand prospects for education in India. The outlook may be
revised to 'Positive' if the company scales up its operations
leading to significant increase in its net cash accruals.
Conversely, the outlook may be revised to 'Negative' if there is
lower-than-expected net cash accrual generation by Silver Oak or
the timely support from the promoters in the form of unsecured
loans is not brought-in.
About Silver Oak
Silver Oak runs Silver Oak College of Engineering and Technology
in Ahmedabad (Gujarat). Silver Oak was incorporated in 2006 and
started an engineering college in 2009. The institute offers
professional programmes of engineering and technology in five
different specialisations. All the courses offered by the
institute are approved by the All India Council of Technical
Education and affiliated to Gujarat Technological University. The
candidates are selected on the basis of their scores in Gujarat
Common Entrance Test. Also, the institute is registered with
Indira Gandhi National Open University as an exam and study
centre and hence, offers engineering and engineering diploma
courses during weekends.
Silver Oak's profit after tax (PAT) is estimated at INR5.6
million on net sales of INR32 million for 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR0.1
million on net sales of INR11.7 million for 2009-10.
SPAC TAPIOCA: CRISIL Reaffirms 'CRISIL BB+' Cash Credit Rating
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Spac Tapioca Products
India Ltd continue to reflect Spac's vulnerability to risks
related to timely completion and stabilisation of operations of
its maize-based starch manufacturing unit. Although the company's
scale of operations and profitability will improve once the
project becomes operational, its gearing and debt protection
metrics could be adversely affected by significant delays in
completion and stabilisation of operations at its maize
processing unit.
Facilities Ratings
---------- -------
INR130.0 Million Cash Credit CRISIL BB+/Negative
(Enhanced from INR110 Million)
INR624 Million Long-Term Loans CRISIL BB+/Negative
(Enhanced from INR33.4 Million)
INR126.8 Million Proposed Long- CRISIL BB+/Negative
Term bank loan facility (Reaffirmed)
INR5.0 Million Export Packing CRISIL A4+ (Reaffirmed)
Credit
INR10.0 Million Bank Guarantee CRISIL A4+
(Enhanced from INR5 Million)
INR22.5 Million Standby Line CRISIL A4+ (Reaffirmed)
of Credit
The ratings continue to reflect the susceptibility of Spac's
operating performance to volatility in raw material availability
and prices, and the company's working-capital-intensive
operations. These rating weaknesses are partially offset by
Spac's adequate operating capabilities and its promoters'
extensive experience in the tapioca starch business.
Outlook: Negative
CRISIL believes that Spac's overall credit risk profile will be
constrained by its vulnerability to significant project risks.
The rating could be downgraded in case of significant deviations
from project estimates or higher-than-expected exposure to group
companies, leading to higher debt levels and resulting in more-
than-expected deterioration in gearing and debt protection
metrics. Conversely, the outlook may be revised to 'Stable' if
Spac's project is commissioned in a timely manner and the company
achieves the expected growth in revenues and profitability.
About Spac Tapioca
Set up in 1996, Spac manufactures tapioca-based starch (both
native and modified starch). Its manufacturing facility in Erode
(Tamil Nadu) is close to the tapioca belt in the state. Spac is
among the largest manufacturers of tapioca-based starch in India,
with capacity of 45,000 tonnes per annum. Spac is currently
implementing a maize-based starch unit with an estimated maize
crushing capacity of 300 tonnes per day, along with a 4-megawatt-
captive cogeneration plant at an estimated project cost of INR754
million. The project will be funded by term loan of INR564
million, and the remaining through equity contribution from
promoters. Initially, the project was expected to be commissioned
in September 2011. However, due to initiation issues, the project
completion was deferred to January 2012 and currently; Spac
expects the plant to be commissioned by the end of March 2012.
For 2010-11(refers to financial year, April 1 to March 31), Spac
reported a net profit of INR13.5 million on net sales of INR350.6
million, against a net profit of INR14.0 million on net sales of
INR 315.3 million for 2009-10.
VEERSHAIVA COOPERATIVE: Insolvency Prompts RBI to Cancel License
----------------------------------------------------------------
The Reserve Bank of India has cancelled the license of Veershaiva
Cooperative bank, Mumbai, due to insolvency.
"In view of the fact that Veershaiva Co-operative Bank Ltd.,
Mumbai (Maharashtra), had ceased to be solvent, all efforts to
revive it in close consultation with the Government of
Maharashtra had failed and the depositors were being
inconvenienced by continued uncertainty, the Reserve Bank of
India delivered the order cancelling its licence to the bank as
on the close of business on December 30, 2011," RBI said in a
statement.
"The Registrar of Co-operative Societies, Maharashtra has also
been requested to issue an order for winding up the bank and
appoint a liquidator for the bank."
The bank was granted a license by Reserve Bank on March 26, 1974
to commence banking business. The bank was issued supervisory
instructions on June 18, 2007 based on the inspections findings
with reference to its financial position as on March 31, 2006 and
these supervisory instructions were modified, from time to time,
based on the findings of the subsequent inspection reports.
The statutory inspection of the bank under Section 35 of the
Banking Regulation Act, 1949 (As Applicable to Co-operative
Societies) [the Act], with reference to its financial position as
on March 31, 2009 revealed that the assessed networth of the bank
was negative and the bank's deposits had eroded to the extent of
13.0%. The CRAR of the bank was (-) 35.4% against the regulatory
requirement of 9%. The gross and net NPA were 57.6% and 44.4% of
gross and net advances respectively. The assessed loss stood at
'3350.95 lakh. Based on the inspection report as on March 31,
2009, the bank was advised on October 29, 2009 not to resort to
borrowings, allow premature withdrawal of deposits, grant fresh
loans and explore the possibility of merger with a sound UCB.
Inspection of the bank with reference to its financial position
as on March 31, 2009 also revealed that the bank had sanctioned
loans to 192 individuals at its Kandivali branch amounting to
'210.00 lakh through a tie-up arrangement with an auto dealer,
M/s Satguru Auto. In about 145 cases the lien endorsements
obtained from RTO were found not to be genuine and hence these
were treated by the bank as fraudulent transactions. RCS had
conducted enquiry under Section 83 of the Maharashtra Cooperative
Societies Act, 1960 (in short 'MCS Act, 1960') for the frauds
perpetrated at the bank. As informed by RCS, the enquiry officer
had submitted his report under section 83 of the MCS Act, 1960 on
February 08, 2010 which revealed fraud and misappropriation of
funds in respect of auto loans at Kandivili branch and
irregularities in other loans sanctioned at Andheri branch. As
per the report, apart from the said auto loans, the bank had
disbursed other loans having insufficient mortgage security and
lack of repayment capacity of borrowers involving 76 loan
accounts with total outstanding of '6253.44 lakh where the bank
may suffer loss.
The statutory inspection of the bank with reference to its
financial position as on March 31, 2010 revealed that the
financial indicators of the bank has further deteriorated and its
assessed net worth stood at `(-)3383.32 lakh and assessed CRAR
stood at (-) 53.2%. The erosion in deposits increased to 15.9%.
The gross and net NPAs formed 69.8% and 58.4% of the gross and
net advances respectively. The inspection report was forwarded to
the bank on June 24, 2010 for rectification of deficiencies and
compliance. However, the compliance report submitted by the bank
vide letter dated August 23, 2010 was not considered
satisfactory. Based on the inspection findings as on March 31,
2010 the bank was advised on August 27, 2010 that existing
Supervisory Action/ Operational Instructions will continue.
The statutory inspection of the bank as on March 31, 2011
revealed that the financial position of the bank continued to
deteriorate. The assessed net worth as on March 31, 2011 stood at
(-)Rs.5231.01 lakh, CRAR stood negative at (-)139.6% deposits
have also been eroded to the extent of 33.4%, gross NPA
constituted 79.1% of gross advances, net NPA constituted 63.0%
and the loss was assessed at '3659.32 lakh during 2010-11.
In view of the steep deterioration in its financial position
since 2008-09 as revealed by successive inspections from
March 31, 2009, the bank was placed under all-inclusive
directions under section 35A of the Act vide order UBD.CO.BSD-
I/D-46/12.22.293/2011-12 with effect from the close of business
on August 3, 2011.
The quality of management and the standard of governance in the
bank were poor. The Board was ineffective in laying down policies
for management of the key asset portfolio and was not able to
ensure observance of even laid down policy guidelines. There was
complete absence of efforts for improvement of the bank's
financial position. The management had failed to present the true
and fair view of affairs of the bank in its published financial
statements for several years to the members, depositors and
public. The performance of the Board was not satisfactory, as
evident from the continued deterioration in the bank's financial
position as well as various violations of regulatory guidelines.
The management had not displayed sufficient firmness/ seriousness
in dealing with the staff responsible for the irregularities also
recovery of NPAs. The Board of Directors was ineffective and is
responsible for deterioration in the financial position of the
bank and for conducting the affairs of the bank in a manner
detrimental to the interest of the depositors. TAFCUB had also
recommended that SCN may be issued to the bank. Accordingly SCN
dated August 17, 2011 was issued to the bank requiring it to show
cause as to why the license granted to it under Section 22 of the
Act, on March 26, 1974 to carry on banking business should not be
cancelled and the bank be taken to liquidation.
RBI said the submissions made by the bank in reply to the show
cause notice were examined and not found satisfactory. There was
no concrete revival plan or merger proposal from the bank.
Consequent to the cancellation of its licence, Veershaiva Co-
operative Bank Ltd., Mumbai (Maharashtra) is prohibited from
carrying on 'banking business' as defined in Section 5(b) of the
Act.
=================
I N D O N E S I A
=================
* INDONESIA: Moody's Gives (P)Ba1 Rating to Bond Issue Due 2042
---------------------------------------------------------------
Moody's Investors Service will assign a provisional rating of
(P)Ba1 to the Government of Indonesia's forthcoming U.S. dollar-
denominated bond issuance maturing in 2042.
Ratings Rationale
Indonesia's sovereign rating has been supported by increasingly
robust domestic demand over the past few years, which has helped
to shield the economy from the global financial crisis. In the
ensuing recovery, the pickup in global commodity prices further
bolstered the economic outlook. In contrast to many of its
ratings and regional peers, Indonesia has been able to maintain
its economic momentum despite a deterioration in external demand
in the second half of 2011. Real GDP growth has averaged 6.5%
year-on-year through the first three quarters of 2011, while
inflation has trended downwards. This rapid pace of growth looks
to be sustainable over the medium-term, aided by an improving
track record of inflation management by the monetary authorities
and enhanced prospects for infrastructure development.
In addition, government finances continue to be managed
conservatively with deficits averaging below 2% of GDP since
2001. However, further improvement has been encumbered by the
lack of progress on subsidy reform, while structural issues
impede the effectiveness of government expenditure. Nonetheless,
the government's debt burden as a share of GDP has fallen even
through the global recession and is likely to remain on a
gradually improving trend, providing ample fiscal space to
stimulate growth if necessary.
Indonesia's foreign currency reserve adequacy has also benefited
since the crisis from strength in non-oil and gas commodities
exports and larger FDI and portfolio inflows, some of which may
be reversible. As a result, the stock of foreign currency
reserves have more than doubled from $51.6 billion at end-2008 to
$111.3 billion in November 2011, more than two times residual
short-term external debt.
Challenges to the rating include the relatively shallow depth of
Indonesia's capital markets, manifested in fairly large non-
resident ownership of government securities. As this poses a key
vulnerability in the event of substantial capital outflows, the
government has put together a crisis management protocol to
stabilize the bond market and mitigate any adverse effects on
deficit financing.
The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2008.
* INDONESIA: S&P Assigns 'BB+' Rating on Global Sr. Bond
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' long-term
foreign currency debt rating to a proposed U.S.-dollar-
denominated benchmark-size global senior unsecured bond issue by
the Republic of Indonesia. The bonds, which mature in 2042, form
part of the country's $15 billion global medium-term notes (MTN)
program, which was increased from $9 billion last year.
The bond will constitute the direct, unconditional, and unsecured
obligations of the sovereign, and will rank equal with other
unsecured and unsubordinated external debt of Indonesia.
The sovereign credit rating on Indonesia (BB+/Positive/B; ASEAN
scale axBBB+/axA-2) reflects continuing improvements in the
government's balance sheet and external liquidity, a resilient
economic performance, and cautious fiscal management. Rating
constraints include Indonesia's low per capita income, structural
and institutional impediments to higher economic growth, and
relatively high and volatile inflation. In addition, the country
remains vulnerable to external shocks, partly on account of its
shallow domestic capital markets, although the recent
introduction of the bond stabilization framework moderated this
risk somewhat.
"We may raise the sovereign ratings if reforms such as subsidy
rationalization suggest that fiscal and external vulnerabilities
are further reduced, the external debt burden declines, or the
sovereign's balance sheet improves. Conversely, stalling reforms
or the absence of timely and adequate policy responses to renewed
fiscal or external pressures would result in the ratings
stabilizing or weakening," S&P said.
=========
J A P A N
=========
CORSAIR NO. 2: S&P Raises Rating on Portfolio F360 to 'BB-'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on three
tranches relating to three Japanese synthetic collateralized debt
obligation (CDO) transactions, and at the same time removed these
ratings from CreditWatch with positive implications.
"The rating actions are part of our regular monthly review of
synthetic CDOs for which ratings have been placed on CreditWatch
with positive or negative implications. These actions
incorporate, among other things, the effect of rating migration
within reference portfolios," S&P said.
Ratings Raised, Removed From CreditWatch Positive
*Corsair (Jersey) No. 2 Ltd.
Floating rate secured portfolio credit-linked series 52
(Portfolio F360)
To From Issue amount
BB- (sf) B+ (sf)/Watch Pos JPY1.0 bil.
Fixed rate credit-linked loan series 58
To From Issue amount
BB- (sf) B+ (sf)/Watch Pos JPY3.0 bil.
*Signum Vanguard Ltd.
Class A secured fixed rate credit-linked loan 2005-3
To From Issue amount
AA (sf) A+ (sf)/Watch Pos JPY4.0 bil.
L-JAC FIVE: S&P Lowers Ratings on 5 Classes of Certs. to 'CC'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CC (sf)' from
'CCC- (sf)' its ratings on the class E-1 to I-1 trust
certificates issued under the L-JAC Five Trust Beneficial
Interest (L-JAC Five) transaction.
"We downgraded classes E-1 to I-1 because we have learned that
the servicer waived part of the principal on one of the
transaction's remaining loans, which has defaulted. The loan
originally represented about 8% of the initial issuance amount of
the trust certificates. We intend to lower to 'D (sf)' our
ratings on these five classes if losses are incurred at the CMBS
level in the future," S&P said.
"Of the 20 loans (effectively 13 loans because some of the loans
are in cross-collateral and cross-default) that initially backed
the trust certificates, effectively six loans remain, five of
which have defaulted. The six loans originally represented a
combined 32% or so of the initial issuance amount of the trust
certificates. In addition, apart from the transaction's six
remaining loans, there are two loans for which the sales of the
related collateral properties have been completed but final
calculations at the loan level have not yet been completed. These
two loans originally represented a combined 24% or so of the
initial issuance amount of the trust certificates," S&P said.
L-JAC Five is a multiborrower commercial mortgage-backed
securities (CMBS) transaction. The trust certificates were
originally secured by effectively 13 loans, and the loans were
originally backed by 81 real estate properties and real estate
beneficial interests. Premier Asset Management Co. acts as the
servicer for this transaction.
"The ratings reflect our opinion on the likelihood of the full
payment of interest and the ultimate repayment of principal on
the class E-1 to I-1 trust certificates by the transaction's
legal final maturity date in August 2015," S&P said.
Standard & Poor's 17g-7 Disclosure Report
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com
Ratings Lowered
L-JAC Five Trust Beneficial Interest
JPY63.63 billion Floating-rate trust certificates due August 2015
Class To From Initial issue amount Coupon type
E-1 CC (sf) CCC- (sf) JPY0.5 bil. Floating rate
F-1 CC (sf) CCC- (sf) JPY0.5 bil. Floating rate
G-1 CC (sf) CCC- (sf) JPY0.5 bil. Floating rate
H-1 CC (sf) CCC- (sf) JPY0.53 bil. Floating rate
I-1 CC (sf) CCC- (sf) JPY0.56 bil. Floating rate
OLYMPUS CORP: Seeks JPY3.61-Bil. From 19 Execs for Losses
---------------------------------------------------------
The Japan Times reports that Olympus Corp. said Tuesday the
damages suit it filed two days earlier is targeting 19 current
and former top executives, demanding that they pay a combined
JPY3.61 billion in compensation for losses dozens of times
greater caused by the cover-up of massive failed investments.
The company is particularly blaming ex-Chairman and President
Tsuyoshi Kikukawa, as well as current President Shuichi Takayama.
An investigation report examining the degree of responsibility
held by the former and current executives, The Japan Times notes,
said the company suffered losses of JPY85.9 billion, including
illegal dividends that had been paid even though it had no
distributable profits as a result of the accounting fraud.
The Japan Times relates that the report compiled by a panel of
lawyers said Mr. Kikukawa can be held responsible for all of the
losses. Of those who led the cover-up, Executive Vice President
Hisashi Mori should be held accountable for about JPY70.0 billion
and former Olympus auditor Hideo Yamada about JPY73.9 billion,
the report, as cited by The Japan Times, relayed.
The panel said current board members including Mr. Takayama are
responsible for JPY4.7 billion in losses, but the firm cut the
total compensation sought to JPY3.61 billion, taking into
consideration the executives' ability to pay, according to the
news agency.
The Japan Times notes that Olympus said Mr. Takayama and five
other current board members who face paying damages plan to
resign at an extraordinary shareholders' meeting slated for March
or April.
On Saturday, when the report was submitted to the company, Mr.
Takayama conveyed to other board members his intention to step
down by the end of this month, The Japan Times relates, citing
sources. The company, however, is still making arrangements on
the timing of his resignation as some major shareholders of
Olympus and financial institutions said Mr. Takayama should
remain as president until the shareholder meeting, the news
agency's sources said.
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.
=============================
P A P U A N E W G U I N E A
=============================
* PAPUA NEW GUINEA: Moody's Assigns 'B1' Long Term Issuer Rating
----------------------------------------------------------------
The following release represents Moody's Investors Service's
summary credit opinion on the Government of Papua New Guinea and
includes certain regulatory disclosures regarding its ratings.
This release does not constitute any change in Moody's ratings or
rating rationale for the Government of Papua New Guinea.
Moody's current ratings on Government of Papua New Guinea are:
Long Term Issuer (domestic and foreign currency) ratings of B1.
Ratings Rationale
Papua New Guinea's B1 ratings are based on the country's very low
levels of economic and institutional strength, as well as a
moderate and improving level of government financial strength,
and low susceptibility to event risk. Fiscal and external
indicators generally place PNG in a somewhat stronger position
than its B-rated peers, but this is offset by the economy's small
size, low per capita income, and weak governance.
PNG regularly records very low rankings in governance and rule of
law, affecting Moody's assessment of institutional strength.
There have been some improvements in recent years, along with
some semblance of political stability. Prior to 2002, no
government since independence had served out its full term, but
the government elected in that year did so and was re-elected.
However, officials at the ministerial level and the premiership
have faced renewed allegations of financial impropriety and
corruption over the past year.
Since 2004, high commodity prices and increased fiscal discipline
brought about improved government finances. Notwithstanding 2008
and 2009 when spillovers from the global financial crisis
adversely affected revenues, financial balances have been in
surplus. Government debt ratios have also showed steady
improvement. The very large LNG project could add to government
financial strength starting in 2014, while the proposed use of a
sovereign wealth fund should further bolster fiscal
sustainability and mitigate Dutch disease-type of distortions
from the expected windfall.
Despite vulnerability to commodity price movements,
susceptibility to event risk is judged as low. The B1 rating has
always incorporated this vulnerability.
The outlook is stable. Since the ratings incorporate the
likelihood of commodity price volatility, falling commodity
prices should not affect the rating unless the government loses
fiscal discipline.
The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2008.
=================
S I N G A P O R E
=================
* SINGAPORE: Bankruptcy Applications Likely to Have Risen in 2011
-----------------------------------------------------------------
Today Online reports that the number of bankruptcy applications
received for the first 11 months of 2011 in Singapore has hit
2,129. This is only 73 applications short of the 2,202
applications received for the whole of 2010, the report says.
Based on an average of about 190 applications per month for the
year, last year could see about 2,300 applications, exceeding the
2010 total, according to the report.
Today Online, citing data released by the Insolvency and Public
Trustee's Office (IPTO), relates that still this is lower than
the 3,217 applications received in 2007, the 2,954 applications
received in 2008 and the 2,754 applications received in 2009.
According to the report, the number of applications received in
November totaling 208 is also lower than the 245 applications
received in September, the highest in over 24 months.
There were 1,379 people declared bankrupt in the first 11 months
of the year. In 2010, a total of 1,537 people were declared
bankrupt.
On the upside, Today Online says, the number of companies that
will be wound up last year is not likely to be higher than 2010.
IPTO data shows that 102 companies were wound up in the first 11
months last year, or an average of about nine per month. In
2010, a total of 142 companies were wound up, Today Online
relays.
Today Online adds that the number of petitions filed for
liquidation so far is 157, or about 14 per month. In 2010, a
total of 193 petitions were filed.
*********
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, Ivy B. Magdadaro, Frauline S.
Abangan, and Peter A. Chapman, Editors.
Copyright 2012. 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
Peter Chapman at 240/629-3300.
*** End of Transmission ***