/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/091215.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, December 15, 2009, Vol. 12, No. 247 Headlines A U S T R A L I A ABC LEARNING: Was Unable to Pay Tax Due to Insufficient Funds METAL STORM: Makes Formal Demand to AFHL Over Investment Deal SOLAR SYSTEMS: Administrator Has 45 More Days to Sell Business C H I N A CHINA MERCHANTS: To Complete CNY22 Bil. Rights Offer This Year H O N G K O N G ACADEMY OF CONTINUING: Court to Hear Wind-Up Petition on Dec 30 ANALOG TRADING: Court to Hear Wind-Up Petition on January 6 ASIA METAL: Creditors' Proofs of Debt Due January 11 BIG RESOURCES: Creditors Get 3.416% Recovery on Claims BRILLIANT SMART: Court Enters Wind-Up Order BUILDING ACOUSTICS: Court Enters Wind-Up Order CHAMPION CONTAINER: Court Enters Wind-Up Order CHI FU: Court to Hear Wind-Up Petition on January 13 ELEGANCE GARMENTS: Creditors' Proofs of Debt Due December 25 ERA PETROLEUM: Court to Hear Wind-Up Petition on January 27 EUROPE LIGHTING: Court to Hear Wind-Up Petition on December 23 EXCEL WEALTHY: Court Enters Wind-Up Order FREELAND ELECTRICAL: Court Enters Wind-Up Order GOLD VIEW: Court Enters Wind-Up Order HIGHFIT DEV'T: Creditors and Contributories to Meet on Dec. 23 HOOVER TECH: Creditors and Contributories to Meet on Dec. 17 VISION TECHNOLOGY: Members' and Creditors Meeting Set for Dec. 16 I N D I A AKCT CIDAMBARAM: CRISIL Places 'B' Rating on INR108.8MM LT Loan BALAJI POLYSACKS: Low Net Worth Prompts CRISIL 'BB+' Ratings RAJCON ENGINEERS: CRISIL Rates INR50 Mil. Cash Credit at 'BB-' SH-HARYANA WIRES: Low Net Worth Cues CRISIL 'B' Ratings SHIVA METALLOYS: CRISIL Puts 'B+' Rating on INR110MM Cash Credit SHRI INDHIRA: CRISIL Assigns 'B' Rating on INR70 Mil. Cash Credit TATA STEEL: Plans to Raise INR50 Bil. in Equity I N D O N E S I A ARPENI PRATAMA: S&P Affirms Corporate Credit Rating at 'CC' DIRGANTARA INDONESIA: Seeks to Restructure IDR1.6 Tril. Debt J A P A N JAPAN AIRLINES: Gov't. Unlikely to Provide Guarantee on Loans JLOC XXVIII: Fitch Downgrades Ratings on Two Classes of Notes TAKEFUJI CORPORATION: To Book JPY38.1 Bil. Loss on Bad Loans K O R E A KUMHO ASIANA: Investors Likely to Delay Put-back Option M A L A Y S I A OILCORP BERHAD: Unit Gets Winding Up Petition from AJ Petroleum P H I L I P P I N E S GLOBE TELECOM: S&P Affirms 'BB+' Long-Term Corporate Credit Rating S R I L A N K A TRADE FINANCE: Fitch Affirms National Long-Term Rating at 'BB+' X X X X X X X X DUBAI WORLD: Abu Dhabi to Provide $10 Billion Funding * BOND PRICING: For the Week December 7 to December 11, 2009 - - - - - ================= A U S T R A L I A ================= ABC LEARNING: Was Unable to Pay Tax Due to Insufficient Funds ------------------------------------------------------------- The sister of ABC Learning Centres founder Eddy Groves has told the court how the company fell behind in multimillion-dollar payments to creditors and the Tax Office, The Australian Associated Press reports. The report relates that a public examination into the company last week heard from Lorie Zullo, who was commercial services manager and headed the accounts payable office. Ms. Zullo told the Federal Court hearing in Brisbane cash was tight in the months before November last year, when the company went into voluntary administration and receivership, the AAP says. According to the report, the court was told that by May the company was behind in payments, including taxes. NSW payroll tax was not paid on time because there would have been insufficient funds for wages if it had been, the report states. Ms. Zullo, as cited by the AAP, said she remembered being told at one time, either by her brother or the treasury, that ABC Learning did not have the money to pay all of its tax obligations. Ms. Zullo told the court that in August, she was fielding calls from her former partner, Frank Zullo, for payments to his company, QMS, which maintained the childcare centres. QMS was paid AU$7 million in August and between AU$22 million and AU$23 million in June, the court heard. The examination, according to the AAP, was adjourned. Mr. Groves is expected to take the stand when it resumes in the Federal Court in Sydney in March, the report notes. About ABC Learning Based in Australia, ABC Learning Centers Limited (ASX: ABS) -- http://www.childcare.com.au/-- provides childcare services and education in more than 1,200 centers in Australia, New Zealand, the United States and the United Kingdom. The Company's subsidiaries include A.B.C. Developmental Learning Centers Pty Ltd., A.B.C. Early Childhood Training College Pty Ltd., Premier Early Learning Centers Pty Ltd., A.B.C. Developmental Learning Centers (NZ) Ltd., A.B.C. New Ideas Pty Ltd., A.B.C. Land Holdings (NZ) Limited and Child Care Centers Australia Ltd. On January 26, 2007, it acquired La Petite Holdings Inc. On February 2, 2007, it acquired Forward Steps Holdings Ltd. On March 23, 2007, it acquired Children's Gardens LLP. In September 2007, the Company purchased the Nursery division (Leapfrog Nurseries) from Nord Anglia Education PLC. In June 2008, the Company completed the sale of a 60% stake in its United States business to Morgan Stanley Private Equity. * * * As reported in the Troubled Company Reporter-Asia Pacific on November 6, 2008, ABC Learning Centers Limited appointed Peter Walker and Greg Moloney of Ferrier Hodgson as voluntary administrators of the company and a number of its subsidiaries. Subsequent to the appointment of administrators, the company's banking syndicate appointed Chris Honey, Murray Smith and John Cronin of McGrathNicol as receivers. METAL STORM: Makes Formal Demand to AFHL Over Investment Deal ------------------------------------------------------------- Metal Storm Ltd on Friday gave formal notice to Assure Fast Holdings Ltd BVI after failing to provide initial funding under a US$35 million investment agreement. The company said that the first tranche of approximately AU$2.1 million (US$1.9 million) of equity capital was initial scheduled to close on November 3, 2009, but had been extended subsequently until December 10, 2009. The subscription agreement requires the company to give AFHL two business days from the date of notice to remedy the failure to provide the first tranche funding. "Accordingly, the Company will allow that time before any further action on the AFHL subscription agreement but reserves its rights. The Company has not yet determined if there is any economic value pursuing those rights," Metal Storm said in a statement Monday. The Troubled Company Reporter-Asia Pacific reported on Oct. 23, 2009, that Metal Storm Ltd said it has secured an equity and debt placement of up to US$35 million from international investment company Assure Fast Holdings Limited BVI. The negotiations were completed in Hong Kong with AFHL and its bank, the Royal Bank of Scotland. Metal Storm CEO Dr. Lee Finniear said the Company signed a subscription agreement for the issue of a total of 1,000,000,000 fully paid ordinary shares and 100,000,000 Options for US$17.5 million with AFHL on October 19, 2009. About Metal Storm Metal Storm Limited (ASX:MST) -- http://www.metalstorm.com/-- is a defense technology company with offices in Australia and the United States. The Company specializes in the research, design, development and integration of projectile launching systems utilizing its electronically initiated / stacked projectile technology for use in the defense, homeland security, law enforcement and industrial markets. Metal Storm has entered into a number of partnerships with companies, including Singapore Technologies Kinetics (STK), iRobot, Electro Optic Systems, and Defence Technologies Inc., where partners provide capabilities, such as manufacturing, complementary technology, or access to markets in areas where Metal Storm is not active. Metal Storm Limited's balance sheet at December 31, 2008, showed current assets of US$8,701,884 and current liabilities of US$22,397,651, resulting in a working capital deficit of US$13,695,767. At December 31, 2007, the Company reported a working capital deficit of US$4,742,580. The Company has incurred substantial losses since its formation and anticipates incurring substantial additional losses over at least the next few years as it continues its research and development activities and conduct further trials of its technology. The Company's operations have been financed primarily from capital contributions by investors, interest income earned on cash and cash equivalents, and grants from government agencies. SOLAR SYSTEMS: Administrator Has 45 More Days to Sell Business -------------------------------------------------------------- Solar Systems Pty Ltd has until mid-February to find a buyer or go into liquidation, The Age reports. According to the report, the second meeting of creditors in Melbourne on December 14 was adjourned for up to 45 business days to give administrators at PricewaterhouseCoopers more time to sell the business as a going concern. "During this time we will continue negotiations with interested parties," the report quoted administrator Stephen Longley as saying. As reported in the Troubled Company Reporter-Asia Pacific on September 9, 2009, Solar Systems Pty. Ltd. and two of its subsidiaries were placed into voluntary administration on September 7, 2009. PricewaterhouseCoopers partners Messrs. Longley and David McEvoy were appointed voluntary administrators of: -- Solar Systems Pty Ltd; -- Solar Power Stations Australia Pty Ltd; and -- Solar Systems Generation Pty Ltd. About Solar Systems Based in Melbourne, Australia, Solar Systems Pty Ltd was building Australia's first large scale solar power station, in the Victorian regional town of Mildura. ========= C H I N A ========= CHINA MERCHANTS: To Complete CNY22 Bil. Rights Offer This Year -------------------------------------------------------------- China Merchants Bank said it is completing its rights offer of shares worth CNY22 billion (US$3.2 billion) before the end of the year, Alibaba.com reports. Citing CMB in a statement Dec 12, Alibaba.com relates that the bank aims to maintain its capital adequacy ratio at between 10% and 12%, with the capital asset ratio above 8%, which will generate a capital shortage of more than CNY20 billion during next three years. Merchants Bank in August decided to sell shares worth as much as CNY22 billion through the allotment of A-shares and H-shares, the report recalls. According to the report, China Merchants said it will explore ways to sell subordinated bonds and hybrid bonds at home and overseas to boost capital after completing the offer. It also said it won't need additional equity financing in the next three years unless a "major" event weakens its balance sheet, the report notes. About China Merchants China's 11 largest publicly traded banks may need to raise up to 368 billion yuan by selling shares and bonds to ensure adequate capital for credit growth, BNP Paribas estimated last month. China Merchants Bank -- http://www.cmbchina.com/-- is the second largest bank among China's 12 nationwide shareholding commercial banks. It was established in 1987 and listed on the Shanghai Stock Exchange in 2002. The Ministry of Communications-owned China Merchants Group is the bank's main shareholder with a 26% stake (through various companies). The bank had 410 banking outlets nationwide and 17,829 employees at end-2004. * * * China Merchants Bank continues to carry Moody's Investors Service's Baa3/P-3 long-term/short-term foreign currency deposit ratings and D+ bank financial strength rating. The ratings' outlook remains stable. ================ H O N G K O N G ================ ACADEMY OF CONTINUING: Court to Hear Wind-Up Petition on Dec 30 --------------------------------------------------------------- A petition to wind up the operations of Academy Of Continuing Education Limited will be heard before the High Court of Hong Kong on December 30, 2009, at 9:30 a.m. The Petitioner's solicitors are: Kao, Lee & Yip 17th Floor, Gloucenter Tower The Landmark Central, Hong Kong ANALOG TRADING: Court to Hear Wind-Up Petition on January 6 ----------------------------------------------------------- A petition to wind up the operations of Analog Trading Company Limited will be heard before the High Court of Hong Kong on January 6, 2010, at 9:30 a.m. The Petitioner's solicitor is: Christina Hadiwibawa Revenue Tower 30/F 5 Glouecester Road Wan Chai, Hong Kong ASIA METAL: Creditors' Proofs of Debt Due January 11 ---------------------------------------------------- Creditors of Asia Metal and Mining Limited, which is in members voluntary liquidation, are required to file their proofs of debt by January 11, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 1, 2009. The company's liquidators are: Thomas Andrew Corkhill Iain Ferguson Bruce Gloucester Tower, 8th Floor The Landmark 15 Queen's Road Central, Hong Kong BIG RESOURCES: Creditors Get 3.416% Recovery on Claims ------------------------------------------------------ Big Resources Industries Limited, which is in liquidation, will pay the first and final dividend to its creditors on or after December 18, 2009. The company will pay 3.416% to all received claims. The company's liquidators are: Desmond Chung Seng Chiong Roderick John Sutton The Hong Kong Club Building, 14/F 3A Chater Road Central, Hong Kong BRILLIANT SMART: Court Enters Wind-Up Order ------------------------------------------- The High Court of Hong Kong entered an order August 12, 2009, to wind up the operations of Brilliant Smart Engineering Limited. The company's liquidator is Bruno Arboit. BUILDING ACOUSTICS: Court Enters Wind-Up Order ---------------------------------------------- The High Court of Hong Kong entered an order October 9, 2009, to wind up the operations of Building Acoustics Limited. The company's liquidator is Bruno Arboit. CHAMPION CONTAINER: Court Enters Wind-Up Order ---------------------------------------------- The High Court of Hong Kong entered an order November 5, 2009, to wind up the operations of Champion Container Services Limited. The company's liquidator is Bruno Arboit. CHI FU: Court to Hear Wind-Up Petition on January 13 ---------------------------------------------------- A petition to wind up the operations of Kwong Kwok Siu trading as Chi Fu Construction Co. will be heard before the High Court of Hong Kong on January 13, 2010, at 9:30 a.m. The Petitioner's solicitors are: Pansy Leung Tang & Chua Regent Centre, 21st Floor 88 Queen's Road Central Hong Kong ELEGANCE GARMENTS: Creditors' Proofs of Debt Due December 25 ------------------------------------------------------------ Creditors of Elegance Garments & Textile Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by December 25, 2009, to be included in the company's dividend distribution. The company's liquidators are: Bruno Arboit Simon Blade 1203-1213 China Merchants Tower, Shun Tak Centre 168-200 Connaught Road Central, Hong Kong ERA PETROLEUM: Court to Hear Wind-Up Petition on January 27 ----------------------------------------------------------- A petition to wind up the operations of ERA Petroleum Corporation Limited will be heard before the High Court of Hong Kong on January 27, 2010, at 9:30 a.m. The Petitioner's solicitor is: Christina Hadiwibawa Revenue Tower 30/F 5 Glouecester Road Wan Chai, Hong Kong EUROPE LIGHTING: Court to Hear Wind-Up Petition on December 23 -------------------------------------------------------------- A petition to wind up the operations of Europe Lighting Group Limited will be heard before the High Court of Hong Kong on December 23, 2009, at 9:30 a.m. The Petitioner's solicitors are: Hammonds Jardine House, Suite 3201 1 Connaught Place Central, Hong Kong EXCEL WEALTHY: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order November 2, 2009, to wind up the operations of Excel Wealthy Investment Limited. The company's liquidator is Bruno Arboit. FREELAND ELECTRICAL: Court Enters Wind-Up Order ----------------------------------------------- The High Court of Hong Kong entered an order July 31, 2009, to wind up the operations of Freeland Electrical Company Limited. The company's liquidator is Bruno Arboit. GOLD VIEW: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order August 17, 2009, to wind up the operations of Gold View Jewellery Limited. The company's liquidator is Bruno Arboit. HIGHFIT DEV'T: Creditors and Contributories to Meet on Dec. 23 -------------------------------------------------------------- Creditors and contributories of Highfit Development Co Limited will hold their first meeting on December 23, 2009, at 2:30 p.m., and 3:30 p.m., respectively at the Office Receiver's Office, 10th Floor, Queensway Government Offices, 66 Queensway, Hong Kong. At the meeting, E T O'Connell, the company's provisional liquidator, will give a report on the company's wind-up proceedings and property disposal. HOOVER TECH: Creditors and Contributories to Meet on Dec. 17 ------------------------------------------------------------ Creditors and contributories of Hoover Technologies Ltd will hold their first meeting on December 17, 2009, at 11:00 a.m., and 11:30 a.m., respectively at Room 203, Duke of Windsor Social Service Building, 15 Hennessy Road, Wanchai in Hong Kong. At the meeting, Pui Chiu Wing, the company's provisional liquidator, will give a report on the company's wind-up proceedings and property disposal. VISION TECHNOLOGY: Members' and Creditors Meeting Set for Dec. 16 ----------------------------------------------------------------- Members and creditors of Vision Technology corporate Limited will hold their annual meetings on December 16, 2009, at 3:00 p.m., and 3:30 p.m., respectively at the Room 203, 2/F, Duke Of Windsor Social Service Building, 15 Hennessy Road, Wanchai, in Hong Kong. At the meeting, Chong Man Leung and Fung Tat Man, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= AKCT CIDAMBARAM: CRISIL Places 'B' Rating on INR108.8MM LT Loan --------------------------------------------------------------- CRISIL has assigned its ratings of 'B/Stable/P4' to the bank facilities of AKCT Cidambaram Cotton Mill Pvt Ltd, part of the AKCT group. Facilities Ratings ---------- ------- INR108.80 Million Long Term Loan B/Stable (Assigned) INR60.00 Million Cash Credit B/Stable (Assigned) INR7.50 Million Bank Guarantee P4 (Assigned) The ratings reflect the AKCT group's weak financial risk profile, and exposure to risks relating to fluctuations in raw material prices, intense competition in the polyester and blended viscose yarn industry, and supplier concentration. These weaknesses are partially offset by the benefits that the group derives from its promoters' experience in the textile industry. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of AKCT and Shri Indhira Cotton Mills Pvt Ltd. This is because AKCT and Shri Indhira (collectively referred to as the AKCT group) have common promoters and fungible cash flows, and are in the same line of business. Outlook: Stable CRISIL believes that the AKCT group will continue to benefit from its promoters' extensive experience in the textiles industry. The financial risk profile of the company is likely to remain constrained over the medium term, due to its leveraged capital structure. The outlook may be revised to 'Positive' if the group scales up its operations, if its profitability increases, or if its gearing reduces, resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if underutilization of capacities results in poor cash flows or decline in operating margin, leading to deterioration in the debt protection measures, or if the group contracts large debt to fund capital expenditure over the medium term. About the Group Set up in 2006 by Mr. AKCT Chidambaram, AKCT manufactures 100-per cent polyester yarn of 40s and 76s count. Its facility in Thiruvannamalai (Tamil Nadu) is equipped with 39,744 spindles. Set up in 1956, Shri Indhira manufactures blended viscose yarn with counts of 47s and 60s, typically used for producing school uniforms. Its facility in Chennai (Tamil Nadu) is equipped with 39,252 spindles. Currently, the operations of both the companies are managed by Mr. A L Chidambaram. The AKCT group reported a loss of INR5.4 million on net sales of INR417.9 million for 2008-09 (refers to financial year, April 1 to March 31), as against a profit after tax (PAT) of INR8.1 million on net sales of INR452.4 million for 2007-08. BALAJI POLYSACKS: Low Net Worth Prompts CRISIL 'BB+' Ratings ------------------------------------------------------------ CRISIL has assigned its ratings of 'BB+/Stable/P4+' to Balaji Polysacks Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR50 Million Cash Credit BB+/Stable (Assigned) INR13.4 Million Term Loan BB+/Stable (Assigned) INR2.7 Million Proposed Long BB+/Stable (Assigned) Term Facility INR25 Million Bank Guarantee P4+ (Assigned) The ratings reflect BPPL's limited financial flexibility, low net worth, and small scale of operations in the intensely competitive polyethylene bags industry. These weaknesses are partially offset by the benefits that the company derives from its established customer base. Outlook: Stable CRISIL believes that BPPL will maintain healthy growth in revenues over the medium term, on the back of benefits derived from the promoters' experience and increased market potential. The outlook may be revised to 'Positive' if the company's financial risk profile improves substantially, supported by capital infusion and growth in topline. Conversely, the outlook may be revised to 'Negative' if the company contracts large debt to fund its capital expenditure, thereby weakening its financial risk profile. About Balaji Polysacks Set up as a closely held company in 1995 by Mr. Sajjan Kumar Agarwal, Mr. Sushil Agarwal and Mr. Naresh Kumar Agarwal, BPPL commenced commercial production in 2000. BPPL manufactures high- density polyethylene bags, primarily for the fertilizer industry. The company has loom capacities of 5400 tonnes per annum. BPPL reported a profit after tax (PAT) of INR1.7 million on net sales of INR356 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR1.9 million on net sales of INR336 million for 2007-08. RAJCON ENGINEERS: CRISIL Rates INR50 Mil. Cash Credit at 'BB-' -------------------------------------------------------------- CRISIL has assigned its ratings of 'BB-/Stable/P4' to the bank facilities of Rajcon Engineers Pvt Ltd. Facilities Ratings ---------- ------- INR50 Million Cash Credit BB-/Stable (Assigned) INR150 Million Bank Guarantee P4 (Assigned) The ratings reflect REPL's small scale of operations, low net worth, and limited geographical and customer diversity. These weaknesses are partially offset by REPL's healthy revenue growth and comfortable order book. Outlook: Stable CRISIL believes that REPL will benefit from the growth prospects for the civil construction industry. The outlook may be revised to 'Positive' if REPL strengthens its business risk profile through greater geographical and customer diversity while maintaining its operating margins. Conversely, the outlook may be revised to 'Negative' if the company undertakes any large, debt- funded capital expenditure. About Rajcon Engineers REPL was set up as a partnership firm, Raj Constructions, by Mr. A K Verma and his brother, Mr. M P Verma, in 1982. REPL got its present name when the partnership firm was converted to a private limited company in 2000. The company is engaged in civil construction activities, such as construction of roads, mainly in Chhattisgarh. REPL reported a profit after tax (PAT) of INR10.1 million on net sales of INR213.5 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR9.8 million on net sales of INR294.0 million for 2007-08. SH-HARYANA WIRES: Low Net Worth Cues CRISIL 'B' Ratings ------------------------------------------------------- CRISIL has assigned its ratings of 'B/Negative/P4' to the bank facilities of SH-Haryana Wires Ltd. Facilities Ratings ---------- ------- INR120.0 Million Cash Credit B/Negative (Assigned) INR18.0 Million Standby Line B/Negative (Assigned) of Credit INR100.1 Million Rupee Term Loan B/Negative (Assigned) INR21.9 Million Proposed Long B/Negative (Assigned) Term Bank Loan Facilities INR40.0 Million Letter of Credit/ P4 (Assigned) Bank Guarantee The ratings reflect SH Haryana's moderate financial risk profile, marked by operating losses and low net worth, and exposure to risks relating to fluctuating commodity prices, and limited pricing flexibility. These weaknesses are, however, partially offset by SH Haryana's established relationships with customers. Outlook: Negative CRISIL believes that SH Haryana's financial risk profile will remain moderate, constrained by operating losses incurred in 2008- 09 (refers to financial year, April 1 to March 31) and low net worth. Conversely, the rating may be downgraded if the financial risk profile deteriorates further on account of large debt funded capital expenditure. The outlook may be revised to 'Stable' if the company sustains improvement in profitability resulting in a marked improvement in its financial risk profile. About SH Haryana SH Haryana, set up as a private limited company by name of Haryana Insulated Wires Pvt Ltd in 1981 by Mr. Sunil Mangla, was converted to a public limited company and renamed in 1997 when Schwering & Hasse Elektro draht GMBH (SH Elektro), Germany, acquired a 40% stake in the company. SH Haryana bought back the entire shareholding of SH Elektro in 2003, but retained the old name. SH Haryana manufactures copper wires that find usage across industries such as consumer electronics and appliances and automobiles. Its manufacturing plant at Faridabad has capacity to produce 5000 tonnes of wires per annum. SH Haryana reported a net loss of INR38 million on net sales of INR930 million for 2008-09, as against a profit after tax of INR13 million on net sales of INR1028 million for 2007-08. SHIVA METALLOYS: CRISIL Puts 'B+' Rating on INR110MM Cash Credit ---------------------------------------------------------------- CRISIL has assigned its ratings of 'B+/Stable/P4' to the bank facilities of Shiva Metalloys International Ltd. Facilities Ratings ---------- ------- INR110.0 Million Cash Credit Limit B+/Stable (Assigned) INR50.0 Million Letter of Credit^ B+/Stable (Assigned) INR100.0 Million Letter of Credit P4 (Assigned) ^Interchangeable with the Cash Credit The ratings reflect SMIL's weak financial risk profile, exposure to risks relating to volatility in nickel prices leading to price risk. These weaknesses are, however, mitigated by the benefits that SMIL derives from established relationships with its suppliers and customers. Outlook: Stable CRISIL believes that SMIL will maintain a stable business risk profile on the back of established relationships with suppliers and clients. However, the company's financial risk profile is expected to remain weak owing to high gearing resulting from large working capital requirements. The outlook may be revised to 'Positive' if SMIL manages its working capital effectively, and if its profitability and top line increase. Conversely, the outlook may be revised to 'Negative' if the company's profitability deteriorates significantly, exerting pressure on already weak debt protection measures. About Shiva Metalloys Incorporated in 1982 by Mr. Suresh Kumar Chawla, SMIL (formerly, Shiva Metals) converted to a limited company in 1990. It trades in non-ferrous metal alloys, primarily nickel, zinc, tin, and lead. SMIL reported a profit after tax (PAT) of INR0.3 million on net sales of INR927.7 million for 2008-09 (refers to financial year, April 1 to March 31), as against a PAT of INR9.5 million on net sales of INR1072.2 million for 2007-08. SHRI INDHIRA: CRISIL Assigns 'B' Rating on INR70 Mil. Cash Credit ----------------------------------------------------------------- CRISIL has assigned its ratings of 'B/Stable/P4' to the bank facilities of Shri Indhira Cotton Mills Pvt Ltd, part of the AKCT group. Facilities Ratings ---------- ------- INR70.00 Million Cash Credit B/Stable (Assigned) INR7.50 Million Bank Guarantee P4 (Assigned) The ratings reflect the AKCT group's weak financial risk profile, and exposure to risks relating to fluctuations in raw material prices, intense competition in the polyester and blended viscose yarn industry, and supplier concentration. These weaknesses are partially offset by the benefits that the group derives from its promoters' experience in the textile industry. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Shri Indhira and AKCT Cidambaram Cotton Mill Pvt Ltd. This is because AKCT and Shri Indhira (collectively referred to as the AKCT group) have common promoters and fungible cash flows, and are in the same line of business. Outlook: Stable CRISIL believes that the AKCT group will continue to benefit from its promoters' extensive experience in the textiles industry. The financial risk profile of the company is likely to remain constrained over the medium term, due to its leveraged capital structure. The outlook may be revised to 'Positive' if the group scales up its operations, if its profitability increases, or if its gearing reduces, resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if underutilization of capacities results in poor cash flows or decline in operating margin, leading to deterioration in the debt protection measures, or if the group contracts large debt to fund capital expenditure over the medium term. About the Group Set up in 1956 by Mr. AKCT Chidambaram, Shri Indhira manufactures blended viscose yarn with counts of 47s and 60s, typically used for producing school uniforms. Its facility in Chennai (Tamil Nadu) is equipped with 39,252 spindles. Set up in 2006, AKCT manufactures 100-per cent polyester yarn of 40s and 76s count. Its facility in Thiruvannamalai is equipped with 39,744 spindles. Currently, the operations of both the companies are managed by Mr. A L Chidambaram. The AKCT group reported a loss of INR5.4 million on net sales of INR417.9 million for 2008-09 (refers to financial year, April 1 to March 31), as against a profit after tax (PAT) of INR8.1 million on net sales of INR452.4 million for 2007-08. TATA STEEL: Plans to Raise INR50 Bil. in Equity ----------------------------------------------- The Economic Times, citing the DNA newspaper, reports that Tata Steel Ltd is in talks with investors to raise INR50 billion (US$1.1 billion) in equity and an equal amount in debt. The Company will first dilute equity and then raise debt, the report says. "The method has not been finalized, it's still on the table, but a non-convertible debentures issue or bond sale would be the preferred route," the report cited the DNA newspaper. A company spokeman, however, said he could not immediately comment on the report, the Economic Times notes. Headquartered in Mumbai, India, Tata Steel Limited -- http://www.tatasteel.com/-- is a diversified steel producer. It has operations in 24 countries and commercial presence in over 50 countries. Its operations predominantly relate to manufacture of steel and ferro alloys and minerals business. Other business segments comprises of tubes and bearings. On April 2, 2007, Tata Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1, which in turn is a subsidiary of Tata Steel completed the acquisition of Corus Group plc. Tata Metaliks Limited, which is engaged in the business of manufacturing and selling pig iron, became a subsidiary of the Company with effect from February 1, 2008. In September 2008, the Company acquired a 7.3% interest in Riversdale Mining Ltd. * * * As reported in the Troubled Company Reporter-Asia on June 10, 2009, Moody's Investors Service downgraded the corporate family rating of Tata Steel Ltd to Ba3 from Ba2. Moody's said the rating outlook is stable. ================= I N D O N E S I A ================= ARPENI PRATAMA: S&P Affirms Corporate Credit Rating at 'CC' ----------------------------------------------------------- Standard & Poor's Ratings Services said that it had affirmed its long-term corporate credit rating on Indonesia-based PT Arpeni Pratama Ocean Line Tbk. at 'CC'. The outlook is negative. At the same time, S&P affirmed the 'C' issue rating on the outstanding US$140.85 million senior secured notes issued by its fully owned special purpose vehicle Arpeni Pratama Ocean Line Investment B.V. due May 3, 2013, and guaranteed by Arpeni. "We affirmed the ratings following Arpeni's announcement that it paid the pending coupon on its guaranteed senior secured notes due 2013 on Dec. 3, 2009, avoiding an event of default. In S&P's view, the company still has limited financial flexibility, with derivative transactions adding to its financial commitments," said Standard & Poor's credit analyst Manuel Guerena. The delayed payment of the US$6.2 million coupon (equivalent to about Indonesian rupiah (IDR) 59 billion) suggests to us that Arpeni has depleted its cash at a faster-than-expected rate, given that the company had IDR469 billion in cash and short-term investments amounting to IDR304 billion as at June 30, 2009. Arpeni's liquidity has been under increasing pressure, as the company has funded its growing working capital requirements over the past few quarters through short-term loans. This situation was compounded by a weakening of the company's operating margins this year. Arpeni's average EBITDA margin in the past three years was about 38% -- including a 29% margin in the quarter ended March 2009 and 21% margin in the following quarter -- barely sufficient to cover the company's quarterly interest expenses. With a ratio of debt to annualized EBITDA of 10x at June 30, 2009, Arpeni has limited financial flexibility, especially if its debt is adjusted to include the mark-to-market valuation of its derivatives as per its balance sheet. Arpeni dominates the local dry bulk industry, transporting about one-fifth of the overall coal shipments within Indonesia, where demand from the power sector is favorable. The company should benefit from the implementation of cabotage regulations to reduce the dependence on foreign-flagged vessels trading within Indonesian waters. The regulations are expected to be fully in place starting 2010. "The negative rating outlook reflects the risks surrounding Arpeni's liquidity position amid a challenging operating environment, and the high likelihood that the company will struggle to meet fully and on time its financial commitments in the next six months. Upgrade potential is currently limited, unless the company significantly improves its liquidity," said Mr. Guerena. DIRGANTARA INDONESIA: Seeks to Restructure IDR1.6 Tril. Debt ------------------------------------------------------------ PT Dirgantara Indonesia is seeking to restructure debts related to loans obtained under the Investment Account Fund and Subsidiary Loan Agreement, The Jakarta Post reports. The Post relates PT DI president director Budiman Sales said Friday its unpaid debts under the SLA and RDI facilities totaled IDR1.6 trillion. The company would propose that the government convert the debt to equity in the already 100-percent state owned company, Mr. Sales added. RDI is a loan facility provided by the government to state firms using funds from foreign aid or loans while SLA is a loan facility from the government using funds from state banks. The Jakarta Post, meanwhile, reports that the office of the state ministry for state enterprises listed 44 other SOEs currently defaulting on paying debts under the RDI and SLA facilities. The government has so far facilitated the restructuring of IDR10 trillion out of IDR15 trillion of bad debts owed by 26 state firms, according to the Post. About Dirgantara Indonesia PT Dirgantara Indonesia -- http://www.indonesian-aerospace.com/-- is an Indonesian aerospace company in Asia with core competence in aircraft design, development and manufacture of civilian and military regional commuter aircraft. In its production line, Dirgantara Indonesia has delivered more than 300 units of aircraft and helicopters, defense system, aircraft components and other services. According to press reports, the company was not able to fully recover from the 1998 Asian financial crisis, and has sought government help to turn its business around. It has urged the government to support the industry by purchasing aircraft from PT DI, and is currently marketing its products to neighboring countries in the region. As reported by the Troubled Company Reporter-Asia Pacific on Sept. 7, 2007, the commercial court declared Dirgantara Indonesia bankrupt at the request of some of the aircraft maker's dismissed workers, in a bid to extract retirement funds. The court declared victory of the claim of Dirgantara Indonesia Employees' Communication Forum Trade Union by affirming bankruptcy of the company, the TCR-AP reported, citing Arif Minardi, general chairman of the trade union as saying. On Oct. 29, 2007, the TCR-AP reported that the Indonesian Supreme Court accepted an appeal filed by PT Dirgantara Indonesia over the Commercial Court's bankruptcy ruling. Supreme Court Judge Mariana Sutadi Mariana said the appeal was accepted because the former employees had no legal right to file an insolvency petition against a public company wholly owned by the government, The Jakarta Post related. Under the existing bankruptcy law, the finance minister is the only party that is allowed to take a state-owned company to the bankruptcy court, the report explains. ========= J A P A N ========= JAPAN AIRLINES: Gov't. Unlikely to Provide Guarantee on Loans ------------------------------------------------------------- The Japanese government is unlikely to provide a guarantee on loans and other funding to Japan Airlines Corp. in the forthcoming extra budget out of concern the public would oppose it, The Japan Times reports citing a Cabinet member. The Times reports that transport minister Seiji Maehara said a government-backed corporate turnaround body will likely make a decision on providing a broad financial package to the struggling airline in January. According to the report, Mr. Maehara said the administration will discuss the government guarantee before or at the time of the decision by the Enterprise Turnaround Initiative Corp. of Japan. The report says Mr. Maehara also confirmed that he will meet with executives of American Airlines Inc., a unit of AMR Corp., next week following a similar meeting with top officials of Delta Air Lines Inc. as the two U.S. carriers raise the ante for capital ties with JAL. The government will watch closely which airline JAL will decide to partner with because it will affect the decision by the government-backed body to offer financial support, Mr. Maehara added. Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan- based holding company that is active in five business segments through its 225 subsidiaries and 82 associated companies. The Air Transportation segment is engaged in the operation of passenger and cargo planes. The Air Transportation-Related segment is engaged in the transportation of passengers and cargoes, the preparation of in-flight food catering, the maintenance of aircraft and land equipment, as well as the fueling business. The Travel Planning and Marketing segment is involved in the planning and sale of travel packages. The Card and Leasing segment is engaged in the provision of finance, cards and leasing services. The Others segment is involved in businesses related to hotels, resorts, logistics, wholesale, retail, real estate, printing, construction, manpower dispatch, as well as information and communication. The Company has numerous global operating locations. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. * * * As reported in the Troubled Company Reporter-Asia Pacific on December 4, 2009, Standard & Poor's Ratings Services lowered to 'SD' (selective default) from 'CC' its long-term corporate credit ratings on Japan Airlines Corp. and Japan Airlines International Co. Ltd., its wholly owned subsidiary, and removed the ratings from CreditWatch. At the same time, Standard & Poor's maintained its senior unsecured debt ratings on both companies at 'CCC' and kept the ratings on CreditWatch with developing implications. On Sept. 18, 2009, S&P placed the corporate credit and senior unsecured debt ratings on both companies on CreditWatch with negative implications and maintained the CreditWatch status on Oct. 16, 2009, and Nov. 4, 2009. On Nov. 13, 2009, S&P maintained its CreditWatch status on the corporate ratings on both companies and revised to developing its CreditWatch status on the senior unsecured debt ratings. The TCR-AP reported on Nov. 3, 2009, that Moody's Investors Service downgraded the long-term debt rating and issuer rating of Japan Airlines International Co., Ltd. to Caa1 from B1, and will continue to review both ratings for further possible downgrade. JLOC XXVIII: Fitch Downgrades Ratings on Two Classes of Notes ------------------------------------------------------------- Fitch Ratings has downgraded two classes of trust beneficiary interest from JLOC XXVIII Senior Trust and one class of JLOC XXVIII mezzanine specified bonds due October 2012. The agency has also affirmed two and removed three classes of JLOC XXVIII Senior Trust's TBIs from Rating Watch Negative. This follows the implementation of the recently published criteria for Japanese CMBS surveillance. Full details of the rating actions are: JLOC XXVIII Senior TBIs -- JPY1.14 billion* Class A TBIs affirmed at 'AAA'; Outlook Stable; off RWN; -- JPY10.1 billion* Class B TBIs affirmed at 'AAA'; Outlook Stable; off RWN; -- JPY8.8 billion* Class C TBIs downgraded to 'BB-' from 'AA-'; Outlook Negative; off RWN; and -- JPY7.2 billion* Class D TBIs downgraded to 'CCC' from 'BBB'; assigned a Recovery Rating of 'RR5'; remains on RWN. JLOC XXVIII mezzanine SB -- JPY3.6 billion* TMK1 mezzanine SB downgraded to 'CC' from 'B+'; assigned a Recovery Rating of 'RR6'; remains on RWN. * as of December 10, 2009 Fitch has downgraded Class C and D TBIs as well as the mezzanine SB, reflecting the revised valuations of the underlying collateral properties. In line with its recently published criteria, based on the actual property disposition activity to date, on-site meeting with the asset manager and the new disposition plan submitted by the AM, the agency has revalued the properties in accordance with the time to expected maturity of this transaction (October 2010). For the purpose of its review, the agency adopted values for the properties that are on average 37.8% lower than its initial valuations. Fitch has maintained the RWN on the Class D TBIs and the mezzanine SB, reflecting the possibility that further rating actions may follow, depending on the progress of the disposition activities. Fitch received the new disposition plan in late November 2009. The agency will review the RWN status again by the end of April 2010 and summaries the progress of the disposition at that point, since the actual disposition activities may deviate from the AM's plan, taking into account the large number of properties that the AM has to dispose of before the legal final maturity date. Fitch has affirmed the Class A and B TBIs reflecting increased credit enhancement levels to date. Although Fitch revised the remaining properties' valuations downwards to a large extent (37.8%), significant property disposition has occurred to date with sales proceeds being allocated on a sequential basis. This resulted in the wide gap in ratings between these classes and other lower-rated classes. Future sales proceeds of underlying properties are also expected to be allocated sequentially. Consequently, the Class A TBIs are expected to be fully redeemed before the end of H110. This transaction was originally backed by specified bonds issued by two Tokutei Mokuteki Kaisha, which were backed by 567 commercial real estate properties. To date, the specified bonds issued by one TMK were fully redeemed and a portion of the collateral portfolio backing the other TMK has also been disposed. The transaction is currently secured by 176 properties. Rating Outlooks have been published for all newly issued Asia Pacific Structured Finance tranches since June 2008, and concurrently with rating actions for tranches issued prior to June 2008. Unlike a Rating Watch which notifies investors that there is a reasonable probability of a rating change in the short term as a result of a specific event, rating outlooks indicate the likely direction of any rating change over a one- to two-year period. TAKEFUJI CORPORATION: To Book JPY38.1 Bil. Loss on Bad Loans ------------------------------------------------------------ Bloomberg News reports that Takefuji Corp. said it will take an JPY8.8 billion (US$99 million) charge for sales of bad loans. The report, citing Takefuji's statement to the Tokyo Stock Exchange, discloses that the one-time loss on the sale of JPY38.1 billion in loans won't affect its earnings outlook. Company spokesman Hidehiko Hombu said the lender plans to use the proceeds to redeem bonds, according to Bloomberg. Bloomberg relates Takefuji said last week it may have to pay JPY56.6 billion in cash to holders of its convertible bonds, redeemable in June, after it failed to swap all of the debt in an exchange offer. Credit Ratings Downgrade The Troubled Company Reporter-Asia Pacific reported on Nov. 19, 2009, that Standard & Poor's Ratings Services lowered its long- term counterparty credit rating on Takefuji Corp. by four notches to 'CC' from 'B-'. The rating remains on CreditWatch with negative implications. S&P said the rating action reflects the high likelihood that a debt exchange that Takefuji offered on Nov. 16, 2009, will be recognized as a default under Standard & Poor's criteria, if it goes ahead. At the same time, S&P lowered its rating on the outstanding senior unsecured bonds (straight bonds) issued by Takefuji by two notches to 'CCC', given slower progress in Takefuji's fund-raising than S&P expected, and removed the rating from CreditWatch with negative implications. The rated long-term senior unsecured bonds are all straight bonds, and are not subject to the debt exchange. The long-term rating on Takefuji was placed on CreditWatch with negative implication after it was downgraded to 'B-' on Oct. 1, 2009. Moody's Investors Service also downgraded to Caa1 from B2 the long-term issuer rating and senior unsecured debt ratings of Takefuji Corporation. Moody's changed the ratings outlook to stable from negative. About Takefuji Takefuji Corporation (TYO:8564) --http://www.takefuji.co.jp/ is a Japan-based company mainly engaged in the consumer finance business. The Company operates in two business segments. The Consumer Finance segment covers the loan and credit card businesses. The Others segment is involved in the operation of golf courses, the development, management and leasing of real estate, the venture capital business, as well as the investment business, among others. The Company has eight subsidiaries. ========= K O R E A ========= KUMHO ASIANA: Investors Likely to Delay Put-back Option ------------------------------------------------------- A group of financial investors is likely to delay a put-back option for Daewoo Engineering & Construction Co. until January 15, Yonhap News reports citing industrial sources and a Kumho Asiana official. "A group of financial investors who have a put-back option for Daewoo Engineering & Construction expressed its intention to delay exercising its rights to sell its share in the builder," the news agency quoted a Kumho Asian official as saying. They will guarantee the delay in written form no later than Tuesday." Yonhap recalls Kumho Asiana promised a group of financial investors in 2006, when it bought Daewoo Engineering & Construction, that it would buy back a 39% stake in the builder if the company's stock price falls below KRW31,500 (US$27.22) by Dec. 15, 2009. The group bought a 72.1|% stake in the builder for KRW6.42 trillion, KRW3.5 trillion of which was funded by financial investors, including banks and private equity funds, the news agency discloses. Yonhap, citing unnamed sources, relates that Kumho Asiana early this month called on financial investors to delay exercising their rights to sell stakes until January 15, saying that if they exercise their options now, it could have a negative impact on the sale of Daewoo Engineering & Construction that is currently underway. Under the deal with the group, the report relates, investors can exercise their option anytime between December 15 and January 15. "Banks agreed to delay the option, because banks may suffer losses if the sale of Daewoo faces difficulty," Yonhap cited another financial source as saying. As reported in the Troubled Company Reporter-Asia Pacific on July 1, 2009, Kumho Asiana Group decided to put Daewoo Engineering and Construction up for sale. Kumho Asiana, which bought Daewoo Engineering for US$5 billion three years ago, said it has not yet determined the exact size of stake to be sold, the Financial Times said. The size of the sale would be designed to "minimize the group's losses and to reduce a buyer's burden." The announcement, according to the FT, follows pressure on Kumho to raise money by finding fresh investors in Daewoo by the end of July to ease a liquidity crunch. Kumho has a 33% stake in Daewoo with management control while financial investors hold a further 39%. About Daewoo Engineering Headquartered in Seoul, South Korea, Daewoo Engineering & Construction Co. -- http://www.daewooenc.com/-- has become a world leader in civil engineering, housing construction, power and industrial plant development, architectural services, and construction of liquid natural gas facilities. In addition to large-scale domestic projects, Daewoo has more recently built gas plants in Nigeria, a hospital in Libya, and the Trump World Tower in New York, to name a few. =============== M A L A Y S I A =============== OILCORP BERHAD: Unit Gets Winding Up Petition from AJ Petroleum --------------------------------------------------------------- Oilcorp Berhad disclosed that Oil-Line Engineering & Associates Sdn. Bhd., a wholly-owned subsidiary of the company, has received a winding up petition from AJ Petroleum Sdn. Bhd. The petition was presented to the Shah Alam High Court on November 6, 2009, and the winding-up petition was served and received by OLEA on December 3, 2009. The claim under the petition amounted to MYR591,000.00. No interest has been claimed. In the petition, it is claimed that OLEA is indebted to AJ Petroleum for sum, being the balance outstanding due for consultancy services provided, and unable to pay its debts. The matter is fixed for hearing on February 19, 2010. Oilcorp Berhad is a Malaysia-based investment holding company. The Company operates in five segments: oil and gas and engineering, which includes engineering, procurement, construction and contract-related services in oil and gas related industries; property investment/resort, which includes property and resort operations and related activities and services; investment holding, which includes investment holding; fisheries, which includes deep sea fishing operations and related activities, and overseas special project (construction), which includes engineering, procurement, construction and contract-related sources in non oil and gas industries related industries. Its wholly owned subsidiaries include Oil-Line Engineering & Associates Sdn. Bhd., D'Tiara Corp Sdn. Bhd., Layar Visi Sdn. Bhd. and D'Tiara Corp Limited. Oilcorp Berhad has been classified as an Affected Listed Issuer under Practice Note 17/2005 of Bursa Malaysia Securities Berhad as the Company is unable to provide a solvency declaration to Bursa Securities following a default in its interest payments pursuant to Practice Note 1/2001. ===================== P H I L I P P I N E S ===================== GLOBE TELECOM: S&P Affirms 'BB+' Long-Term Corporate Credit Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB+' long-term corporate credit rating on Philippines-based telephone service provider Globe Telecom Inc. with a stable outlook. At the same time, it affirmed the 'axBBB+' ASEAN scale rating on Globe. Both ratings were then withdrawn at the company's request. Standard & Poor's does note rate any debt facility associated with Globe. "We affirmed the ratings to reflect S&P's expectation that the industry's subscriber growth will slow down and that competition will remain intense. These challenges are offset by Globe's steady market position and solid cash flow protection measures. In S&P's view, the company will continue to be a leading player in the Philippines' telecom service market over the medium term, given its significant customer base and nation-wide network coverage," said Standard & Poor's credit analyst Manuel Guerena. After a period of industry-wide intense promotion to attract customers and increase on-net traffic, Globe cleaned disconnected, inactive, or marginal consumers from its user base, most of them prepaid users. At Sept. 30, 2009, Globe had 23.1 million Subscriber Identity Module cards in use, down from 23.7 million a year earlier. This number suggests the company's market share is only slightly higher than 30%, compared with 50%-55% for its major competitor, Philippine Long Distance Telephone Co. (foreign currency BB+/Stable/--). Globe's business position supports its stable cash flow protection measures. S&P expects the company's funds from operations to reach about Philippine peso (PHP) 30 billion each year. In the past few years, the company's additional borrowings complemented its internal cash generation to fund increased capital expenditure and dividend payments (decreased capex needs may lead to higher dividend payments in the future). Globe's ratio of FFO to debt ratio was about 60% as at September 2009 (annualized), down from a peak of 94% in 2007. Because of the higher capex and dividend payments, Globe's ratio of debt to EBITDA was 1.6x as at September 2009, compared with 1.1x for 2007, and was in line with its previous historical levels. S&P expects these ratios to remain stable over the medium term, even if market growth slows down (penetration is about 80%) amid intense competition. Globe's margins reflect the increasing revenue contribution of the high-growth but lower-margin broadband and fixed-line data revenues, which compensated for the decline of voice and Short Message Service revenues. The stable outlook reflected the company's steady market position, favorable financial situation, and higher operating efficiency. ================ S R I L A N K A ================ TRADE FINANCE: Fitch Affirms National Long-Term Rating at 'BB+' --------------------------------------------------------------- Fitch Ratings Lanka has affirmed Sri Lanka's Trade Finance & Investments Ltd's National Long-term rating at 'BB+(lka)'. The Outlook is Stable. TFI's rating factors its high capitalization in terms of its size of operations and good profitability. The rating is constrained by TFI's small asset base, limited product diversity and its narrow funding base. Three-wheelers accounted for approximately 90% of its assets financed over the six-month period ended September 2009 (H110). TFI's loan book shrank by 5% in H110, with incremental lending coming from repeat customers. Fitch will monitor the development of the second-hand four stroke three-wheeler market, TFI's incremental growth with respect to financing, and any progress with regards to lending diversification. Profitability was well above the sector average with an ROA of 15.9% in H110 (FYE09: 9.8%) largely due to high capitalization, strong net interest margins (H110: 22%) and good cost management (cost/income of 27.8% in FY09). Historically, TFI's NPLs at the three-month level have been high, with gross NPLs/gross loans of 26% at end-H110, reflecting the risk profile of the clientele and the company's business strategy. Provision coverage for NPLs was 21% at end-H110 on account of 75% of NPLs falling in the three to six month in arrears bucket, for which regulatory provisioning is not required. Provision coverage for NPLs more than six months in arrears was 85%. TFI's net NPL/equity ratio was good at 14% at end-H110 (0.7% for six-month NPLs), which was significantly better than the sector average. Funding is predominantly from equity, deposits and loans from shareholders and related parties. Equity/assets ratio was 63% at end-H110, which was significantly above the sector average. Internal capital generation was robust, in light of good profitability and the high earnings retention policy. TFI is a finance company established in 1978 with an asset base of LKR519 million at end-H110. The Cooray family (owners of the Jetwing Group) acquired TFI in the early 1990s, and currently owns around 93%. =============== X X X X X X X X =============== DUBAI WORLD: Abu Dhabi to Provide $10 Billion Funding ----------------------------------------------------- Margaret Coker at The Wall Street Journal reports Dubai on Monday said the government of Abu Dhabi would provide $10 billion to meet the debt obligations of Dubai World. Ms. Coker says the timing of the bailout coincided with a deadline for a $4.1-billion payment related to an Islamic bond, or sukuk, issued by Dubai World's real-estate subsidiary Nakheel, which matured Monday. "But it also raised fresh questions about the opaque and complicated relationship between Abu Dhabi, the capital of the U.A.E., and Dubai, its financial and trade hub," Ms. Coker says. Ms. Coker says the funding brings Abu Dhabi's direct and indirect support for Dubai to $25 billion so far. That sent stock markets in both emirates soaring, she says. By underwriting Dubai World, Ms. Coker says, Abu Dhabi triggered an immediate bout of investor optimism that promises to ease its own borrowing costs. The move also appeared aimed at protecting the United Arab Emirate's reputation as a global transportation hub, according to one person familiar with the situation. According to Ms. Coker, in the wake of Dubai's announcement for a six-month standstill of its debts, worry over the implied support Abu Dhabi would give its own companies hit hard. After the Dubai announcement in late November, Ms. Coker relates the cost of insuring Abu Dhabi debt against default soared from just under $100,000 per $10 million to over $177,000 earlier this month, according to market tracker CMA. Late Monday in London, that had eased back to about $151,500, she says. Last week, according to Ms. Coker, Moody's Investors Service placed the credit rating of several Abu Dhabi companies, including Mubadala Development Co., a vehicle that has financed much of the capital's infrastructure projects, on review for a possible downgrade, citing the uncertainty over government support. Mubadala said last week that it was confident that its strategic importance and "sound business model" put it in a strong position with credit agencies. The rising cost of its own borrowing appears to have outweighed any hesitancy in Abu Dhabi about providing more cash to Dubai, analysts said, according to Ms. Coker. 6-Month Standstill The Troubled Company Reporter, citing The Wall Street Journal and Bloomberg News, ran a story about Dubai World seeking a six-month standstill on its debt obligations. In a statement obtained by the Journal and Bloomberg, the government of Dubai said it would restructure Dubai World and has appointed Deloitte LLP to lead the restructuring effort, naming an executive at the consultancy as the group's "chief restructuring officer." The standstill will immediately affect US$3.52 billion of Islamic bonds due December 14 from the Company's property unit Nakheel. Bloomberg News' Arif Sharif and Laura Cochrane said Dubai World has US$59 billion in liabilities. Bloomberg said Dubai accumulated US$80 billion of debt by expanding in banking, real estate and transportation before credit markets seized up last year. The Journal said Standard & Poor's in an October report estimated Dubai World could be responsible for as much as 50% of Dubai's total government and corporate debt load of some US$80 billion to US$90 billion. Large Exposure As reported by the Troubled Company Reporter-Europe on Dec. 1, 2009, The Wall Street Journal's Chip Cummins, Dana Cimilluca and Sara Schaefer Munoz, citing a person familiar with the matter, said that U.K.'s Royal Bank of Scotland Group PLC, HSBC Holdings PLC, Barclays PLC, Lloyds Banking Group PLC, Standard Chartered PLC and ING Groep NV of the Netherlands, are among the international banks that have large exposure in Dubai World. RBS has lent roughly US$1 billion to Dubai World, another person said, according to the Journal. Sources also told the Journal Barclays's exposure to Dubai World is roughly US$200 million, and that exposure is effectively hedged. David Robertson at The (U.K) Times reported Credit Suisse has estimated that European banks could have EUR40 billion (GBP36 billion) in loans to Dubai and much of this could be at risk if the Gulf emirate defaults. The Journal, citing people familiar with the matter, said the banks with the greatest exposure to Dubai World are Abu Dhabi Commercial Bank and Emirate NBD PJSC, people familiar with the matter said. Dow Jones Newswires' Margot Patrick related that a report by the Emirates Banks Association said the top eight foreign banks in the United Arab Emirates by lending volume -- HSBC, Standard Chartered, Barclays, HSBC, Royal Bank of Scotland's ABN Amro, Citigroup Inc., BNP Paribas SA, Lloyds and Credit Agricole SA's Calyon, -- extended about US$36 billion in loans in 2008 throughout the federation, without breaking down the loans by emirate or type of borrower. About Dubai World Dubai World -- http://www.dubaiworld.ae/-- is Dubai's flag bearer in global investments. As a holding company it operates a highly diversified spectrum of industrial segments and plays a major role in the emirate's rapid economic growth. Dubai World's investment spans four strategic growth areas of 21st Century commerce namely, Transport & Logistics, Drydocks & Maritime, Urban Development and Investment & Financial Services. Dubai World's portfolio includes DP World, one of the largest marine terminal operators in the world; Drydocks World & Dubai Maritime City designed to turn Dubai into a major ship-building and maritime hub; Economic Zones World which operates several free zones around the world including Jafza and TechnoPark in Dubai; Nakheel the property developer behind iconic projects such as The Palm Islands and The World among others; Limitless the international real estate master planner with current development projects in various parts of the world; Leisurecorp a global sports and leisure investment group, reshaping the industry by unlocking value across investment, development and brand opportunities; Dubai World Africa which oversees the regional development and portfolio of investments in the African continent; and Istithmar World, the group's investment arm that has a global footprint in finance, capital, leisure, aviation and various other business ventures. The Sun Never Sets on Dubai World, its Web site says. * BOND PRICING: For the Week December 7 to December 11, 2009 ------------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- AINSWORTH GAME 8.00 12/31/2009 AUD 0.85 AMP GROUP FINANC 9.80 04/01/2019 NZD 0.93 ANTARES ENERGY 10.00 10/31/2013 AUD 1.72 AUROX RESOURCES 7.00 06/30/2010 AUD 0.78 BECTON PROP GR 9.50 06/30/2010 AUD 0.54 BOUNTY INDUSTRIE 10.00 06/30/2010 AUD 0.03 CAPRAL ALUMINIUM 10.00 03/29/2012 AUD 72.00 CBD ENERGY LTD 12.50 01/29/2011 AUD 0.18 CHINA CENTURY 12.00 09/30/2010 AUD 0.80 FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.50 GRIFFIN COAL MIN 9.50 12/01/2016 USD 53.00 HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.24 JPM AU ENF NOM 1 3.50 06/30/2010 USD 8.63 MINERALS CORP 10.50 12/31/2009 AUD 0.84 NATIONAL CAP II 5.49 12/29/2049 USD 72.04 NATIONAL WEALTH 6.75 06/16/2026 AUD 76.76 NEW S WALES TREA 1.00 09/02/2019 AUD 61.15 NYLEX LTD 10.00 12/08/2009 AUD 0.84 ORCHARD INVEST 7.36 12/15/2010 AUD 29.50 RESOLUTE MINING 12.00 12/31/2012 AUD 0.83 SUN RESOURCES NL 12.00 06/30/2011 AUD 0.50 SUNCORP METWAY I 6.75 10/06/2026 AUD 73.35 TIMBERCORP LTD 8.90 12/01/2010 AUD 26.10 VERO INSURANCE 6.15 09/07/2025 AUD 67.55 CHINA ----- BAILIAN GROUP 4.15 03/26/2012 CNY 54.39 CHINA GOVT BOND 4.86 08/10/2014 CNY 108.17 JIANGXI COPPER 1.00 09/22/2016 CNY 70.60 SICHUAN CHANGHON 0.80 07/31/2015 CNY 72.75 HONG KONG --------- RESPARCS FUNDING 8.00 12/29/2049 USD 24.00 INDONESIA --------- BAKRIELAND DEV 12.85 03/11/2013 IDR 75.00 BANK DKI 12.25 03/04/2018 IDR 75.00 INDIA ----- AKSH OPTIFIBRE 1.00 01/29/2010 USD 60.00 GEMINI COMMUNICA 6.00 07/18/2012 EUR 68.50 GHCL LTD 1.00 03/21/2011 USD 69.75 JCT LTD 2.50 04/08/2011 USD 40.00 KEI INDUSTRIES 1.00 11/30/2011 USD 73.75 KSL REALTY & INF 2.00 05/19/2012 USD 46.44 SUBEX AZURE 2.00 03/09/2012 USD 67.50 WANBURY LTD 1.00 04/23/2012 EUR 69.50 JAPAN ----- AIFUL CORP 6.00 12/12/2011 USD 45.00 AIFUL CORP 1.22 04/20/2012 JPY 35.55 AIFUL CORP 1.74 05/28/2013 JPY 31.13 AIFUL CORP 6.00 12/12/2011 USD 39.88 AIFUL CORP 1.20 01/26/2012 JPY 36.60 AIFUL CORP 1.14 10/19/2010 JPY 52.41 AIFUL CORP 1.50 10/20/2011 JPY 41.35 AIFUL CORP 1.99 03/23/2012 JPY 36.50 AIFUL CORP 1.63 11/22/2012 JPY 34.00 AIFUL CORP 1.99 10/19/2015 JPY 30.34 AIFUL CORP 5.00 08/10/2010 USD 64.50 AIFUL CORP 5.00 08/10/2010 USD 64.50 COVALENT MATERIA 2.87 02/18/2013 JPY 61.87 CSK CORPORATION 0.25 09/30/2013 JPY 60.28 FUKOKU MUTUAL 4.50 09/28/2025 EUR 69.50 JAPAN AIRLINES 3.10 01/22/2018 JPY 71.33 JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 57.08 JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 57.66 PROMISE CO LTD 1.37 06/04/2013 JPY 68.26 SHINSEI BANK 5.63 12/29/2049 GBP 73.75 SHINSEI BANK 3.75 02/23/2016 EUR 82.76 TAKEFUJI CORP 8.00 11/01/2017 USD 11.00 TAKEFUJI CORP 4.00 06/05/2022 JPY 53.15 TAKEFUJI CORP 9.20 04/15/2011 USD 48.63 TAKEFUJI CORP 9.20 04/15/2011 USD 49.96 WILLCOM INC 2.35 06/27/2012 JPY 44.67 MALAYSIA -------- ADVANCE SYNERGY 2.00 01/26/2018 MYR 0.08 ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.03 BERJAYA LAND 5.00 12/30/2009 MYR 3.81 CRESCENDO CORP B 3.75 01/11/2016 MYR 0.74 DUTALAND BHD 4.00 04/11/2013 MYR 0.40 DUTALAND BHD 4.00 04/11/2013 MYR 0.73 EASTERN & ORIENT 8.00 07/25/2011 MYR 1.00 EASTERN & ORIENT 8.00 11/16/2019 MYR 0.99 HUAT LAI RESOURC 5.00 03/28/2010 MYR 0.43 KRETAM HOLDINGS 1.00 08/10/2010 MYR 1.10 KUMPULAN JETSON 5.00 11/27/2012 MYR 2.30 LBS BINA GROUP 4.00 12/31/2009 MYR 0.42 LION DIVERSIFIED 4.00 12/17/2013 MYR 1.25 MITHRIL BHD 3.00 04/05/2012 MYR 0.61 NAM FATT CORP 2.00 06/24/2011 MYR 0.20 OLYMPIA INDUSTRI 2.80 04/11/2013 MYR 0.19 OLYMPIA INDUSTRI 4.00 04/11/2013 MYR 0.23 PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.66 RUBBEREX CORP 4.00 08/14/2012 MYR 1.11 TRADEWINDS CORP 2.00 02/08/2012 MYR 0.70 TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.10 TRC SYNERGY 5.00 01/20/2012 MYR 1.28 WAH SEONG CORP 3.00 05/21/2012 MYR 2.51 WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.30 YTL CEMENT BHD 0.00 11/10/2015 MYR 1.99 NEW ZEALAND ----------- ALLIED FARMERS 9.60 11/15/2011 NZD 51.89 ALLIED NATIONWID 11.52 12/29/2049 NZD 33.00 BBI NTWKS NZ LTD 9.00 11/30/2012 NZD 0.82 BLUE STAR PRINT 9.10 09/15/2012 NZD 74.00 CAPITAL PROP NZ 8.00 04/15/2010 NZD 10.50 CONTACT ENERGY 8.00 05/15/2014 NZD 1.03 FLETCH BUILD FIN 8.85 03/15/2010 NZD 8.00 FLETCHER BUI 8.50 03/15/2015 NZD 8.50 FLETCHER BUILDIN 7.55 03/15/2011 NZD 7.50 INFRASTR & UTIL 8.50 09/15/2013 NZD 11.00 INFRATIL LTD 8.50 11/15/2015 NZD 11.45 INFRATIL LTD 10.18 12/29/2049 NZD 60.00 MANUKAU CITY 6.90 09/15/2015 NZD 1.01 MARAC FINANCE 10.50 07/15/2013 NZD 0.96 NZ FINANCE HLDGS 9.75 03/15/2011 NZD 52.43 PROVENCOCADMUS 2.00 04/15/2010 NZD 0.82 SKY NETWORK TV 4.01 10/16/2016 NZD 55.81 SOUTH CANTERBURY 10.43 12/15/2012 NZD 0.77 SOUTH CANTERBURY 10.50 06/15/2011 NZD 0.94 ST LAURENCE PROP 9.25 05/15/2011 NZD 60.20 TOWER CAPITAL 8.50 04/15/2014 NZD 1.00 TRUSTPOWER LTD 8.50 03/15/2014 NZD 8.50 TRUSTPOWER LTD 8.50 09/15/2012 NZD 8.00 UNI OF CANTERBUR 7.25 12/15/2019 NZD 1.00 VECTOR LTD 7.80 10/15/2014 NZD 1.01 VECTOR LTD 8.00 12/29/2049 NZD 7.65 SINGAPORE --------- BLUE OCEAN 11.00 06/28/2012 USD 32.88 BLUE OCEAN 11.00 06/28/2012 USD 28.07 SENGKANG MALL 8.00 11/20/2012 SGD 0.01 UNITED ENG LTD 1.00 03/03/2014 SGD 1.21 WBL CORPORATION 2.50 06/10/2014 SGD 2.20 KOREA ----- WOORI BANK 6.21 05/02/2037 USD 79.50 SRI LANKA --------- SRI LANKA GOVT 7.00 10/01/2023 LKR 68.77 ********* 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 C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2009. 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 ***