/raid1/www/Hosts/bankrupt/TCRAP_Public/100325.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, March 25, 2010, Vol. 13, No. 059
Headlines
A U S T R A L I A
HIH INSURANCE: Liquidator Settles $450 Million Claim Over FAI
TRANSCON: Goes Into Liquidation; 30 Jobs Affected
TRANSURBAN GROUP: Future Fund Ends Talk With Canadian Pension Fund
C H I N A
COUNTRY GARDEN: Moody's Confirms 'Ba2' Corporate Family Rating
H O N G K O N G
LILAND LIMITED: Tsang Hing Hung Appointed as Liquidator
MEADHAM LIMITED: Members' Final Meeting Set for April 20
MOTOROLA AIRCOMMUNICATIONS: Young Appointed as New Liquidator
NATION BRIGHT: Court Enters Wind-Up Order
REAL INTEGRITY: Placed Under Voluntary Wind-Up Proceedings
ROAD KING: Moody's Changes Outlook on 'Ba3' Rating to Stable
SHENZHEN TOOLING: Au Yan Alfred Steps Down as Liquidator
SIMON LEE: Lee Kwok Ying Simon Steps Down as Liquidator
SINO RESOURCES: Court to Hear Wind-Up Petition on April 7
ZENESIS SPC: S&P Raises Rating on Series 2006-1 Notes to 'BB+'
I N D I A
ALLIANCE PETROLEUMS: CRISIL Rates INR220MM Cash Credit at 'B'
BHAGAWATI COOLS: CRISIL Assigns 'BB-' Ratings on Various Debts
BIOTECH INT'L: CRISIL Puts 'BB+' Rating on INR92.5M Term Loan
INDAGE VINTNERS: Court Orders Wind-up Over Loan Default
KADVANI FORGE: CRISIL Assigns 'B+' Rating on INR90MM Term Loan
KARNANI SOLVEX: CRISIL Assigns 'BB' Rating on INR87MM Term Loan
KRITIKA WIRES: CRISIL Places 'BB' Rating on INR80MM Term Loan
KULKARNI POWER: Stretched Liquidity Cues CRISIL 'BB-' Ratings
MIMANI AGRO: CRISIL Assigns 'B+' Rating on INR61MM Term Loan
P & S JEWELLERY: CRISIL Puts 'P4+' Rating on Packing Credit
P & S SHRINGAR: CRISIL Puts 'BB' Rating on INR142.5M Cash Credit
PHOENIX FOILS: CRISIL Assigns 'B+' Rating on INR19.6M Term Loan
PSR SILK: CRISIL Rates INR141.70 Million Long Term Loan at 'B'
ROXY ROLLER: CRISIL Lifts Rating on INR5.6 Mil. LT Loan to 'BB-'
SARDA ECO: CRISIL Assigns 'P4+' Rating on INR115MM Bank Debts
SUNIL KUMAR: Delay in Loan Payment Cues CRISIL 'C' Ratings
SWATANTRA LAND: CRISIL Rates INR250 Million Term Loan at 'B-'
TATA STEEL: Likely to Start Work on Orissa Plant in April
TIRUPUR TEXTILES: Weak Liquidity Prompts CRISIL Junk Ratings
TRV GLOBAL: CRISIL Assigns 'P4' Rating on Various Bank Debts
VENKATESH LOGISTICS: CRISIL Lifts Ratings on Various Debts to 'BB'
ZIRCON EXPORTS: CRISIL Assigns 'B+' Ratings on Various Bank Debts
ZUBERI FIBRES: CRISIL Rates INR400.0 Million Term Loan at 'B+'
I N D O N E S I A
BERLIAN LAJU: Fitch Affirms Issuer Default Ratings at 'B'
GAJAH TUNGGAL: Moody's Upgrades Corporate Family Rating to 'B3'
PERUSAHAAN LISTRIK: Plans to Issue IDR3 Tril. in Bonds in June
J A P A N
ELPIDA MEMORY: USITC to Investigate Infineon's Patent Complaint
K O R E A
SSANGYONG MOTOR: Daewoo Motor Sales to Sell Ssangyong Vehicles
N E W Z E A L A N D
CRAFAR FARMS: Natural Dairy Buys Crafar Assets
NEW ZEALAND WINDFARMS: Sell Shares at Deep Discount; CEO to Leave
RESPORT: Placed in Liquidation Over Unpaid Debts to Adidas NZ
P H I L I P P I N E S
ROYAL BANK: Gaisano Eyes Dormant RBS Stock Brokerage Seat
T A I W A N
NANYA TECHNOLOGY: Wins Patent Case Against LSI Corp.
X X X X X X X X
* S&P Downgrades Ratings on Three Asia-Pacific Tranches to 'D'
- - - - -
=================
A U S T R A L I A
=================
HIH INSURANCE: Liquidator Settles $450 Million Claim Over FAI
-------------------------------------------------------------
HIH Liquidator Tony McGrath has finally settled his $450 million
claim against FAI Insurance's financial advisers and reinsurers
for an undisclosed sum, Andrew Main at The Australian reports.
Mr. Main says the settlement had been held up by the intermittent
refusal of one of 200 former partners in auditor Andersen, which
had been brought in as the subject of a cross claim by the
defendants, to sign the settlement.
According to the report, Justice Patricia Bergin of the New South
Wales Supreme Court ratified the decision by all parties that they
would make a financial settlement in favor of the liquidator and
then all parties would drop claims against each other, in what was
threatening to become an extremely long drawn out case.
"It's a milestone," The Australian quoted Mr. McGrath as saying
after the brief court hearing. "It will allow us to move forward
rather than stay locked up for years in litigation, which would
have compelled us to hold back further payments to creditors."
The Australian discloses that the biggest creditors of HIH now are
the state and federal governments, the latter of which put up some
$600 million in a fund to pay out insurance claimants.
The report relates Mr. McGrath said that to date he's been able to
pay out $1.2 billion to creditors of the defunct insurer, which
collapsed in March 2001 with a deficiency originally estimated at
$5.2 billion. The Australian says that deficiency has since been
adjusted downwards to a number closer to $3.6 billion, although
that is still the biggest corporate collapse in Australian
history.
According to the report, Mr. McGrath said that to date he has paid
out 40 cents-to-the-dollar to insurance creditors of the FAI
company, which he hopes to lift to 50c, and 45c to creditors of
CIC -- a company HIH bought in the 1990s before FAI -- with a view
to paying out 60c in total to CIC creditors.
The Australian adds that the hardest hit creditors will be those
of the main insurer HIH Casualty and General, which incurred
losses of more than $1 billion on some disastrous forays in the
London insurance market. Mr. McGrath said he hopes to increase
the payment of 18c in the dollar, made already, to 35c.
Mr. McGrath, as cited by The Australian, said he hoped to conclude
the major part of the liquidation by around 2014, 13 years after
its collapse, but noted that he still had some 2200 "open''
insurance claims to settle and that between 50 and 100 "long tail
claims", as they are called, were still coming in each quarter.
As reported in the Troubled Company Reporter-Asia Pacific on
May 15, 2006, The Australian said Mr. McGrath was planning to sue
FAI Insurances Limited and FAI General Insurance Company for
hundreds of millions of dollars in damages. The lawsuit is
believed to be a move to recover cash for HIH creditors. The
Australian related that Mr. McGrath's decision to commence
a damages action follows the NSW Supreme Court's appointment of
a special purpose liquidator -- Stephen Parbery from PPB -- to
FAI Insurances and FAI General. Mr. Parbery's appointment on
May 4, 2006, came after Mr. McGrath, who was then liquidator to
both HIH and FAI, expressed his concern about a potential
conflict of interest. The Australian recalled that HIH took over
FAI for AU$300 million in 1998. The takeover has been partly
blamed for HIH's collapse in March 2001. Mr. McGrath had earlier
initiated suits against reinsurers, from which he has recovered
around AU$2 billion. He has also previously named Federal MP and
parliamentary secretary Malcolm Turnbull as defendants in a legal
action on behalf of HIH creditors. Mr. Turnbull was the chairman
of Goldman Sachs Australia, who was FAI's adviser at the time of
HIH's takeover.
About HIH Insurance
HIH Insurance Limited was a publicly listed company in Australia.
Prior to its collapse in 2001, the HIH Group was the second
largest general insurer in Australia and had operations in many
other countries.
On March 15, 2001, HIH Insurance Limited and a number of its
subsidiaries were placed into provisional liquidation.
Subsequently, on Aug. 27, 2001, the companies that were in
provisional liquidation were placed into liquidation.
Schemes of Arrangement are in place for eight of those companies.
The eight licensed insurance companies within the group were
placed into Schemes of Arrangement in Australia on May 30, 2006.
Four of these companies were also placed into Schemes of
Arrangement in the UK on June 13, 2006.
The Scheme Administrators have made initial payments to certain
creditors and will make further payments over the coming years,
HIH said on its Web site.
TRANSCON: Goes Into Liquidation; 30 Jobs Affected
-------------------------------------------------
ABC News reports that steel company Transcon has gone into
liquidation, leaving 30 workers out of job and a financier five
and a half million dollars out of pocket. The report relates
Transcon steel workers said they have been aware for a few weeks
that work in the company had been running out and it was
struggling with cash flow.
The ABC says the company was reportedly involved in a dispute with
a creditor and was unable to secure additional finance to continue
operations.
According to the report, liquidator Stuart Reid of Meertens
Chartered Accountants said it would be months before the company's
assets are divided.
"The liquidator is considering the best way of realizing the
assets of the company, which are significant running into the
several million," the report quoted Mr. Reid as saying. "Once we
choose the most appropriate method to realize, we will seek to
maximize the return to creditors."
Transcon is a Darwin, Australia-based steel company.
TRANSURBAN GROUP: Future Fund Ends Talk With Canadian Pension Fund
------------------------------------------------------------------
Malcolm Scott and Sarah McDonald at Bloomberg News report that
Future Fund, Australia's sovereign wealth fund, has terminated
talks with two Canadian pension funds on joining a AU$6.8 billion
bid for Transurban Group. Bloomberg relates the AU$66.2 billion
Future Fund said in a statement it ended discussions with Canada
Pension Plan Investment Board and Ontario Teachers' Pension Plan,
without giving a reason.
As reported in the Troubled Company Reporter-Asia Pacific on
February 18, 2010, Bloomberg said Transurban Group hasn't received
any further takeover approaches from two Canadian pension funds
since rejecting their AU$6.8 billion offer in November 2009.
The TCR-AP reported on Nov. 5, 2009, Transurban Group rejected
unsolicited takeover offer from Canada Pension Plan Investment
Board and Ontario Teachers' Pension plan.
In a statement to the Australian Stock Exchange, Transurban said
that the proposal received was incomplete, highly conditional and
non-binding, which if implemented, would involve a change of
control of the group through a scheme of arrangement.
According to Bloomberg, the cash and stock offer from the Canadian
funds, Transurban's second- and third-biggest shareholders, valued
Transurban shares at AU$5.25 each.
About Transurban Group
Melbourne, Australia-based Transurban Group (ASX:TCL)--
http://www.transurban.com.au/-- is engaged in the operation of
CityLink, Hills M2 and the Pocahontas Parkway, provision of the
tolling and customer management system for the Westlink M7
Motorway project, tendering for participation in and/or
acquisition of other toll roads, development of electronic
tolling and other intelligent transport systems for
implementation in both domestic and international markets, and
identification and development of infrastructure projects. The
company also has a controlling interest in the Sydney Roads Group.
* * *
Transurban Group incurred net losses of AU$152.18 million,
AU$105.34 million and AU$16.13 million for the years ended
June 30, 2007, through 2009.
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C H I N A
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COUNTRY GARDEN: Moody's Confirms 'Ba2' Corporate Family Rating
--------------------------------------------------------------
Moody's Investors Service has confirmed Country Garden Holdings
Company Limited's Ba2 corporate family rating and Ba3 senior
unsecured bond rating. The ratings outlook is negative.
This concludes the rating review for possible downgrade initiated
on 23 December 2009 and following Country Garden's announcement
that it had entered into agreement to participate in the Asian
Games City Project in Guangzhou.
"The rating action reflects Moody's expectation that Country
Garden may consider including other parties who are interested in
the Asian Games City Centre and that the presale proceeds will
fund part of its land payments," says Peter Choy, a Moody's Vice
President & Senior Credit Officer, adding "The ability to fund
such payments would mitigate Moody's concerns that the project
would strain the company's liquidity."
"Furthermore, Country Garden's products -- sold at affordable
prices -- and its niche markets in second- and third-tier cities
are likely to be less affected by the current tightening in
regulatory measures, when compared to other developers," says
Choy.
"Its portfolio of over 60 projects also provides good
diversification and minimizes the risk of a material decline in
sales volumes," adds Choy.
Its Ba2 corporate family rating further reflects its strong sales
execution in the suburban markets of economically strong Guangdong
Province. In addition, it is large in size, and has the advantage
of low land costs. Such a situation offers pricing flexibility.
Country Garden continues to generate stable contracted sales --
RMB4 billion in the first two months of 2010 -- and which fund its
working capital needs and support its liquidity position. Its
stable sales have also meant a resilient track record in a down
market.
At the same time, the rating is tempered by Country Garden's need
for debt funding to support its rapid growth model, which will
keep its leverage at the high end for its rating level. The
rating also reflects its reliance on cash flow contributions from
Guangdong Province.
The negative rating outlook reflects its need to arrange
refinancing for the US$600 million in convertible bonds with put
option in February 2011 and its relatively weaker credit metrics
for its rating level.
Upward rating pressure is unlikely in the near term, given the
negative outlook.
However, the outlook could return to stable if the company
maintains sufficient balance sheet cash, operating cash flow, and
committed liquidity lines to meet land payments, dividends and
debt repayments on a rolling 12-month basis. Moreover, its debt
leverage needs to be improved, such that Adjusted Debt/Total
Capitalization maintains at 45%, or below on a sustainable basis.
Meanwhile, downward rating pressure could emerge if Country Garden
(1) experiences difficulty in implementing its current business
plan; (2) sees its profit margins erode further; (3) fails to
produce a solid plan to refinance its convertible bonds by 1H2010;
and/or (4) suffers from a further weakening in the Chinese
property market, such that its operating cash flow is weaker than
anticipated.
In such a situation, a downgrade could be considered if its EBITDA
margin falls below 20%; Adjusted Debt/Total Capitalization rises
above 50%; EBITDA/Interest declines below 3.5x-4.0x on a sustained
basis; and/or the company reports continuous negative operating
cash flow (before land payments), which further weakens its
liquidity.
The last rating action on Country Garden was taken on 23 December
2009 when the ratings were placed under review for possible
downgrade.
Founded in 1997 in China and listed in Hong Kong in April 2007,
Country Garden Holdings Company Limited is one of the leading
integrated property developers in China.
================
H O N G K O N G
================
LILAND LIMITED: Tsang Hing Hung Appointed as Liquidator
-------------------------------------------------------
Tsang Hing Hung on March 12, 2010, was appointed as liquidator of
Liland Limited.
The liquidator may be reached at:
Tsang Hing Hung
29/F, K. Wah Centre
191 Java Road
North Point, Hong Kong
MEADHAM LIMITED: Members' Final Meeting Set for April 20
--------------------------------------------------------
Members of Meadham Limited will hold their final meeting on
April 20, 2010, at 2:00 p.m., at the 3/F., Malaysia Building, 50
Gloucester Road, Wanchai, in Hong Kong.
At the meeting, Yuen Shu Tong, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
MOTOROLA AIRCOMMUNICATIONS: Young Appointed as New Liquidator
-------------------------------------------------------------
Isabelle Angeline Young on March 11, 2010, was appointed as
liquidator of Motorola Aircommunications Limited.
The liquidator may be reached at:
Isabelle Angeline Young
John Chi Wai Wong
21/F, Edinburgh Tower
The Landmark
15 Queen's Road
Central, Hong Kong
NATION BRIGHT: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on February 3, 2010,
to wind up the operations of Nation Bright Development Limited.
The company's liquidator is Yuen Tsz Chun Frank.
REAL INTEGRITY: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on March 12, 2010,
creditors of Real Integrity Limited resolved to voluntarily wind
up the company's operations.
The company's liquidators are:
Ho Man Kit
Kong Sau Wai
Unit 511, 5th Floor
Tower 1, Silvercord
No. 30 Canton Road
Tsimshatsui, Kowloon
Hong Kong
ROAD KING: Moody's Changes Outlook on 'Ba3' Rating to Stable
------------------------------------------------------------
Moody's Investors Service has changed the outlook to stable from
negative for Road King Infrastructure's Ba3 corporate family and
senior unsecured debt ratings.
"The change in outlook reflects Moody's expectation that Road King
has generated higher-than-expected contracted sales from its
property projects, thereby improving its balance sheet liquidity
and indicating an improvement in its execution ability in property
development," says Peter Choy, a Moody's Vice President & Senior
Credit Officer.
"In addition, Road King has satisfactory resolved the problem in
its Tianjin projects, and which signifies the takeover of Sunco is
now fully completed," says Choy.
"While Road King sold its interest in the Jihe expressway in 2009,
the remaining toll road cash flow remain sufficient to cover its
interest payments," says Choy.
The stable outlook further incorporates Moody's expectation that
Road King will continue to exercise prudence in growth and
financial discipline in property development and toll road
acquisitions, such that its debt leverage will maintain at 45%-
50%, positioning it in the low Ba range.
Upward pressure on ratings in the near term appears less likely,
given Road King's modest credit metrics and its relatively small
scale of development when compared with other Ba rated property
peers.
On the other hand, downward pressure could emerge if Road King (a)
suffers a further decline in its balance sheet liquidity; (b)
fails to meet its business plan; (c) continues to suffer losses in
its property development portfolio; (d) undertakes aggressive
debt-funded acquisitions, and/or (e) the performance of its toll
roads deteriorates.
In terms of credit metrics, Moody's would consider as signals for
a possible downgrade: (i) EBITDA/interest below 2.5-3.0x; and (ii)
debt to total capitalization above 55-60%. Furthermore, if cash
flow from its toll roads fails to cover interest expenses by 1x,
then the ratings would also experience downward pressure.
The last rating action on Road King was taken on 17 April 2009
when its rating outlook was changed to negative from stable.
Established in 1994, Road King is a Hong Kong-listed company with
investments in toll roads and property development projects in
China.
SHENZHEN TOOLING: Au Yan Alfred Steps Down as Liquidator
--------------------------------------------------------
Au Yan Alfred stepped down as liquidator of Shenzhen Tooling and
Equipment Supplies Limited on March 12, 2010.
SIMON LEE: Lee Kwok Ying Simon Steps Down as Liquidator
-------------------------------------------------------
Lee Kwok Ying Simon stepped down as liquidator of Simon Lee
Investment Company Limited on February 18, 2010.
SINO RESOURCES: Court to Hear Wind-Up Petition on April 7
---------------------------------------------------------
A petition to wind up the operations of Sino Resources Group
Limited, also known as Sino GP Limited, will be heard before the
High Court of Hong Kong on April 7, 2010, at 9:30 a.m.
The Petitioner's solicitors are:
Oldham, Li & Nie
Suites 503, St. George's Building
2 Ice House Street
Central, Hong Kong
ZENESIS SPC: S&P Raises Rating on Series 2006-1 Notes to 'BB+'
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on Series
2006-1 US$11.274 million, portfolio credit-linked notes (CDO-
squared) issued by Zenesis SPC. At the same time, the rating was
removed from CreditWatch with positive implications, where it was
placed on March 10, 2010.
S&P reviewed the credit quality of the securitized assets using
the synthetic rated overcollateralization scores and results from
S&P's supplemental tests: the largest obligor and largest industry
tests. These results measure the degree by which the credit
enhancement of a tranche exceeds the stressed loss rate assumed
for a given rating scenario.
The rating on Zenesis SPC Series 2006-1 was raised as its SROC
score is greater than 100% at the current rating level and at a
higher rating level (based on the maximum scenario loss rate,
largest obligor test, and largest industry test). SROC scores
rising above 100% reflect an improvement in the credit quality of
the underlying portfolio.
Transaction Rating To Rating From
----------- --------- -----------
Zenesis SPC Series 2006-1 BB+ BB-/Watch Pos
Notes:
1. Where the final price on defaulted reference names in CDO
portfolios is not known, S&P's analysis takes into
consideration the auction results for these names from the
International Swaps and Derivatives Association, Inc.
2. In accordance with the criteria for rating CDO transactions
certain factors such as credit stability and rating
sensitivity to modeling parameters may be considered in
assigning ratings to CDO tranches, in addition to the
supplemental tests, the Monte Carlo default simulation
results, and the associated cash flow modeling. Such risks in
transactions may be assessed on a case-by-case basis and the
ratings may be qualitatively adjusted to a rating level
different than that indicated by the various quantitative
results. The tranches' final ratings reflect the result of
any such qualitative adjustments.
=========
I N D I A
=========
ALLIANCE PETROLEUMS: CRISIL Rates INR220MM Cash Credit at 'B'
-------------------------------------------------------------
CRISIL has assigned its rating of 'B/Stable' to the cash credit
facility of Alliance Petroleums Pvt Ltd.
Facilities Ratings
---------- -------
INR220 Million Cash Credit Facility B/Stable (Assigned)
The rating reflects APPL's weak financial risk profile and high
working capital requirements driven by long receivable cycle. The
impact of these weaknesses is mitigated by the benefits that APPL
derives from its position as a leading consignment agent for Essar
Oil Ltd (Essar Oil) in North India.
Outlook: Stable
CRISIL believes that APPL will maintain a stable operating margin
and benefit from scaled-up operations over the medium term. The
outlook may be revised to 'Positive' if APPL's capital structure
improves significantly, led by sustained improvement in
profitability. Conversely, the outlook may be revised to
'Negative' if APPL's financial risk profile deteriorates
materially because of large debt or working capital requirements.
About Alliance Petroleums
Alliance Petroleums Pvt Ltd, currently headed by Mr. Sameer Anand,
is a consignment agent for Essar Oil and Haldia Petro Chemicals
Ltd, and deals in industrial petrochemicals such as furnace oil
(FO) and carbon black feed stock oil (CBFS). The company has been
a consignment agent for Essar Oil's FO since May 2008. APPL
reported a profit after tax (PAT) of INR3.5 million on net sales
of INR1213.8 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR3.2 million on net
sales of INR353.0 million for 2007-08.
BHAGAWATI COOLS: CRISIL Assigns 'BB-' Ratings on Various Debts
--------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable' rating to the bank facilities
of Bhagawati Cools Pvt Ltd.
Facilities Ratings
---------- -------
INR44.0 Million Cash Credit BB-/Stable (Assigned)
INR30.0 Million Warehouse Financing BB-/Stable (Assigned)
INR14.6 Million Rupee Term Loan BB-/Stable (Assigned)
INR3.3 Million Overdraft Facility BB-/Stable (Assigned)
The rating reflects Bhagawati's average financial risk profile
marked by weak debt protection measures, and fluctuations in
revenue stream due to high linkage to agriculture performance and
in turn to monsoon. The rating also reflects low return on
capital employed from Bhagwati's other businesses, viz. financing,
warehousing and trading of potatoes and grains. These rating
weaknesses are partially offset by the benefits that Bhagawati
derives from its dominant market position and promoters'
experience in the tractor distribution business, and moderate
debtor and inventory risk management.
Outlook: Stable
CRISIL believes that Bhagawati will continue to benefit over the
medium term from its market position, and distribution rights for
Mahindra & Mahindra (M&M) tractors, in Gwalior and Bhopal (Madhya
Pradesh) and Agra (Uttar Pradesh). The outlook may be revised to
'Positive' if Bhagawati improves its financial risk profile by
strengthening its debt protection measures led by improved
profitability. Conversely, the outlook may be revised to
'Negative' if Bhagawati's capital structure is adversely affected
by large debt-funded capital expenditure or if its debt servicing
ability is constrained by a large decline in revenues as a result
of poor agricultural performance in the region.
About Bhagawati Cools
Incorporated in 1999 by Mr. Vikram Singh, Bhagawati is an
authorised distributor of M&M tractors in Gwalior, Bhopal, and
Agra. The company also has cold storage and warehousing
facilities for grains; it also trades in potatoes and grains, and
undertakes the branding of grains.
Bhagawati reported a profit after tax (PAT) of INR1.71 million on
net sales of INR151.30 million for 2008-09 (refers to financial
year, April 1 to March 31), against a PAT of INR0.98 million on
net sales of INR93.71 million for 2007-08.
BIOTECH INT'L: CRISIL Puts 'BB+' Rating on INR92.5M Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'BB+/Positive/P4+' ratings to the bank
facilities of Biotech International Ltd.
Facilities Ratings
---------- -------
INR70 Million Cash Credit Facility* BB+/Positive (Assigned)
INR92.5 Million Term Loan BB+/Positive (Assigned)
INR6.0 Mil. Bill Discounting Facility P4+ (Assigned)
INR59.5 Million Letter of Credit P4+ (Assigned)
INR30 Million Bank Guarantee P4+ (Assigned)
* Up to INR5 million interchangeable with packing credit.
The ratings reflect BIL's large working capital requirements,
exposure to implementation and demand risks associated with the
long-lasting-insecticidal mosquito bed nets (LLIN) unit, small
scale of operations, and exposure to risks inherent in the
agrochemical market in India. These rating weaknesses are
partially offset by BIL's promoters' experience in the bio-
chemicals industry, and by the diversity in the company's product
profile, which helps control revenue concentration.
Outlook: Positive
CRISIL believes that BIL will sign a sales agreement with Clarke
Mosquito Control Products Inc (Clarke) for the LLIN project; the
venture into LLIN is expected to help BIL post significant
increase in revenues and profitability over the medium term. The
ratings may be upgraded if BIL commission the LLIN unit on
schedule leading to increase in cash accruals and profitability.
The outlook maybe revised to 'Stable' in case of delay in
commissioning of the LLIN project, or if BIL posts less cash than
expected or contracts more debt than expected.
About Biotech International
Biotech International was incorporated in 1993 by Mr. Vivek
Singhal and his sons Mr. Ravi Singhal and Mr. Sourabh Singhal. The
company is in the business of manufacturing of bio-chemicals for
agriculture and public health sector, and bed nets. BIL has two
manufacturing units, one each in Noida and Greater Noida.
BIL is the process of setting up a 100 per cent export-oriented
unit in Greater Noida to manufacture LLIN. LLIN are bed nets
impregnated with alphacypermethin chemical, which repels or kills
mosquito. The production capacity of the unit will be around 3.6
million nets per annum. The unit is expected to commence
operations from September 2010.
The technology for manufacturing of high density polyethylene
(HDPE)-based LLIN is provided by Clarke, which is also patented by
Clarke under the name 'DuraNet'. Clarke is approved by WHO
Pesticides Evaluation Scheme (WHOPES) for the supply of LLIN to
international organisations such as the World Bank, World health
Organisation (WHO), UNICEF, Global Fund for Aids, Tuberculosis &
Malaria (GFATM), and Bill & Milinda Gates Foundation.
For 2008-09 (refers to financial year, April 1 to March 31), BIL
reported a profit after tax (PAT) of INR28 million on net revenues
of INR309 million, against a PAT of INR9 million on net revenues
of INR215 million for 2007-08.
INDAGE VINTNERS: Court Orders Wind-up Over Loan Default
-------------------------------------------------------
The Bombay High Court has ordered the liquidation of Indage
Vintners Ltd. following a series of winding-up petitions filed by
lenders and unpaid employees, livemint.com reports, citing
Indage's filing to the Bombay Stock Exchange.
People familiar with the development told livemint.com that Indage
owes around INR750 crore to lenders such as ICICI Bank Ltd., State
Bank of India, Barclays Bank Plc and Axis Bank Ltd., among others.
According to livemint.com, managing director Ranjit Chougule, in a
July 2009 letter to the employees, had admitted to defaults of
payments to lenders and employees. The report relates the company
had come under financial pressure after it raised multiple loans
from banks and other institutions to finance two strategic
overseas acquisitions in 2008.
Indage had been granted a stay of 15 days following a submission
by the company that it had plans to meet all its obligations,
livemint.com says.
About Indage Vintners
Indage Vintners Limited (BOM:522059), formerly Champagne Indage
Limited, is an India-based company engaged in the business of
producing, marketing, distributing, wines and champagne. The
product portfolio of the Company includes Marquise De Pompadour
Brut; Ivy Brut; Joie Brut; Ivy, Chardonnay Semillon; Ivy, Malbec;
Ivy, Sauvignon Semillon; Ivy, Shiraz; Ivy, Chenin Muscat; Ivy,
White Zinfandel; Ivy, Viognier; Riviera, Pinot Noir; Riviera,
Blanc de Blanc; Chantilli, Chardonnay; Chantilli, Cabernet
Sauvignon; Chantilli, Chenin Blanc; Chantilli, Merlot; Chantilli,
Sauvignon Blanc; Chantilli, Shiraz; Chantilli, White Zinfandel;
Vin Ballet, White; Vin Ballet, Red; Vino, White; Vino, Red; Vino
Sparkling Wine; Figueira, Tawny Port; Figueira, Ruby Port;
Cabernet Sauvignon; Chardonnay; Merlot; Sauvignon Blanc; Syrah;
Merlot Shiraz, and Chenin Blanc. The Company produces wines and
exports it to 69 countries. In May 2008, the Company acquired
Darlington Wines in United Kingdom and VineCrest in Australia.
KADVANI FORGE: CRISIL Assigns 'B+' Rating on INR90MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to Kadvani Forge Ltd's
bank facilities.
Facilities Ratings
---------- -------
INR200.0 Million Cash Credit Facility B+/Stable (Assigned)
INR90.0 Million Term Loan B+/Stable (Assigned)
The rating reflects KFL's moderate financial risk profile, marked
by high gearing and average debt protection measures, and exposure
to risks relating to industry and customer concentration in its
revenue profile. These rating weaknesses are partially offset by
KFL's track record in the forging industry, and the benefits that
the company derives from its strong customer base.
Outlook: Stable
CRISIL believes that KFL's cash accruals will improve and that KFL
will benefit from its established and reputed customer base and
the absence of large planned capital expenditure, over the medium
term. The outlook may be revised to 'Positive' if KFL's financial
risk profile improves, supported by improvement in operating
margins and effective working capital management. Conversely, the
outlook may be revised to 'Negative' in case the company faces
significant delays in recovery of dues from customers or if its
operating margin reduces, leading to deterioration in financial
risk profile.
About Kadvani Forge
Incorporated in 1995, Kadvani Forge Ltd commenced commercial
operations in 1997. It was initially promoted by the Kadvani
family and was then acquired by Mr. Vitthalbhai L Dhaduk in
February 2009. KFL manufactures forged components at its facility
in Rajkot (Gujarat) and derives a majority of its revenues from
automobile component manufacturers. The company increased its
production capacity to 30,000 tonnes per annum (tpa) in 2009 from
960 tpa in 1997.
KFL reported a profit after tax (PAT) of INR2 million on net sales
of INR561 million for 2008-09 (refers to financial year, April 1
to March 31) against a PAT of INR11.1 million on net sales of
INR587 million for 2007-08.
KARNANI SOLVEX: CRISIL Assigns 'BB' Rating on INR87MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the bank facilities
of Karnani Solvex Pvt Ltd.
Facilities Ratings
---------- -------
INR60.0 Million Cash Credit Limit BB/Stable (Assigned)
INR87.0 Million Term Loan BB/Stable (Assigned)
The rating reflects the low value addition in KSPL's business, and
the company's exposure to competition from well-established
players. The rating is also constrained by the limited crushing
of mustard seeds, leading to lower availability of mustard cakes
for oil extraction. These weaknesses are partially offset by
KSPL's adequate financial flexibility.
Outlook: Stable
CRISIL believes that KSPL will continue to benefit from the
healthy demand prospects for the edible oil industry. The outlook
may be revised to 'Positive' in case KSPL generates more-than-
expected growth in its operating income and profitability.
Conversely, the outlook may be revised to 'Negative' in case of
lower-than-expected profitability and cash accruals, and/or if the
company undertakes any large, debt-funded capital expenditure
program.
Karnani Solvex Pvt Ltd was promoted by Mr. Sanjay Karnani and
Mr. Narayan Karnani in 2007. The company has set up a solvent
extraction unit in Bassi, Jaipur (Rajasthan), with a production
capacity of 450 tonnes per day, commissioned in September 2009;
the total project cost was INR126 million, funded through bank
borrowings of INR87 million. KSPL undertakes manufacture of
mustard oil (expected to contribute around 30% to the operating
income) and de-oiled mustard cakes (70%).
KRITIKA WIRES: CRISIL Places 'BB' Rating on INR80MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the bank facilities
of Kritika Wires Pvt Ltd.
Facilities Ratings
---------- -------
INR120 Million Cash Credit* BB/Stable (Assigned)
INR80 Million Term Loan@ BB/Stable (Assigned)
*Includes proposed limit of INR90 million
@Proposed
The rating reflects KWPL's constrained profitability because of
intense competition in the wires market, small net worth, and weak
debt protection metrics; the financial risk profile is expected to
weaken further because of the company's planned debt-funded
capital expenditure (capex). The rating also factor in KWPL's
increasing working capital requirements. These rating weaknesses
are partially offset by the benefits that KWPL derives from its
moderate operating efficiency.
Outlook: Stable
CRISIL believes that KWPL will maintain its business risk profile
over the medium term on the back of capacity additions and
moderate operating efficiency. The outlook may be revised to
'Positive' if KWPL's revenues increase, and profitability improves
considerably. Conversely, the outlook could be revised to
'Negative' if the company's capacity utilization is below
expectation, or if it undertakes additional large debt-funded
capex program.
About Kritika Wires
Set up in Kolkata in 2004 by Mr. Naresh Agarwal and Mr. Sanjeev
Binani, Kritika Wires Pvt Ltd. is in the business of wire drawing
(mild steel and electrode quality wires) from wire rods. The
company's manufacturing unit in Howrah has capacity of 7200 tonnes
per annum (tpa). KWPL is setting up a new wire-drawing unit -
electro?galvanized wires, pre-stressed concrete wires, and
aluminium-conductor steel-reinforced core wires. The proposed
plant will have capacity of 22,800 tpa. The total estimated
capital outlay on the project is INR201 million, to be funded in a
debt-to-equity mix of 1.87:1; the debt includes unsecured loans
from promoters.
KWPL reported a profit after tax (PAT) of INR0.6 million on
operating income of INR198 million for 2008-09 (refers to
financial year, April 1 to March 31), against a PAT of INR0.6
million on operating income of INR172 million for 2007-08.
KULKARNI POWER: Stretched Liquidity Cues CRISIL 'BB-' Ratings
-------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4' ratings to Kulkarni Power
Tools Ltd's bank facilities.
Facilities Ratings
---------- -------
INR228.0 Million Term Loan BB-/Stable (Assigned)
INR67.4 Million Cash Credit Facility BB-/Stable (Assigned)
INR71.6 Million Foreign Currency BB-/Stable (Assigned)
Demand Loan
INR6.0 Million Bills Purchased/Bills BB-/Stable (Assigned)
Discounted Facility
INR23.5 Million Proposed Long-Term BB-/Stable (Assigned)
Bank Loan Facility
INR39.7 Million Letter of Credit P4 (Assigned)
Facility
INR7.5 Million Bank Guarantee P4 (Assigned)
Facility
The ratings reflect KPTL's high gearing, stretched liquidity
because of large working capital requirements, and exposure to
competition in the electric power tools industry. These rating
weaknesses are partially offset by KPTL's strong market position,
and by its promoters' experience in the industry.
Outlook: Stable
CRISIL believes that KPTL will maintain its market position over
the medium term on the back of its long-standing relationships
with customers. The outlook may be revised to 'Positive' if KPTL
improves its working capital management and capital structure, and
significantly increases its operating margin. Conversely, the
outlook may be revised to 'Negative' in case of pressure on the
company's operating margin, or deterioration in its financial risk
profile.
About Kulkarni Power
KPTL was incorporated in 1976 as Kulkarni Black & Decker Ltd
(KBDL), a joint venture between the Kulkarni group and Black &
Decker, USA. The company commenced commercial production in 1978.
The collaboration was terminated in 1993 as per mutually agreed
terms, and the name of the company was changed to the present one.
KPTL manufactures electric power tools for a variety of
applications in construction, automobiles, railways, shipyards,
bus-body building, fabrication work, housing, and general
manufacturing. KPTL has a manufacturing unit, with an installed
production capacity of 250,000 tools per annum, in Shirol in
Maharashtra. In 2009, KPTL undertook an expansion project with a
capital expenditure of INR125 million. The new capacity is likely
to become operational in the first quarter of 2010-11 (refers to
financial year, April 1 to March 31).
KPTL reported a profit after tax (PAT) of INR27.2 million on net
sales of INR614 million for 2008-09, against a PAT of INR33.9
million on net sales of INR580 million for 2007-08. For the nine
months ended December 31, 2009, KPTL reported a PAT of INR34.5
million (INR22.8 million for the corresponding period of 2008-09)
on net sales of INR465 million (INR482 million).
MIMANI AGRO: CRISIL Assigns 'B+' Rating on INR61MM Term Loan
------------------------------------------------------------
CRISIL has assigned its ratings of 'B+/Negative/P4' to the bank
facilities of Mimani Agro Products Pvt Ltd.
Facilities Ratings
---------- -------
INR30.0 Million Cash Credit Limit B+/Negative (Assigned)
INR61.0 Million Term Loan B+/Negative (Assigned)
INR1.0 Million Bank Guarantee P4 (Assigned)
The ratings reflect MAPPL's weak financial risk profile, limited
financial flexibility, and exposure to risks relating to small
scale of operations in the intensely competitive agricultural
commodities industry. The impact of the weaknesses is mitigated
by the benefits that MAPPL derives from its promoters' experience
in the agricultural commodities industry.
For arriving at its ratings, CRISIL has combined the financial
risk profiles of MAPPL and MAPPL's associate company, Ganesh
Spices Pvt Ltd (Ganesh Spices). This is because the two companies
(collectively referred to as the Mimani group) have common
promoters and management, and because Ganesh Spices procures its
entire raw material requirements from MAPPL. Moreover, both the
companies have a common banker and fungible cash flows.
Outlook: Negative
CRISIL believes that the Mimani group's financial risk profile
will remain weak over the medium term because of delays in
implementation of MAPPL's capital expenditure program, losses in
Ganesh Spices in the initial years of operations, and Ganesh
Spices's dependence on promoters and MAPPL to meet its term debt
obligations. The outlook may be revised to 'Stable' if the group
complete its project on time, stabilizes its operations, and
reports higher revenues and cash accruals from the existing
operations. Conversely, the ratings may be downgraded if the
company faces time or cost overruns in project implementation.
About Mimani Agro
Incorporated in 1999, Mimani Agro Products Pvt Ltd manufactures
agricultural products such as besan, sattu, and dal. Its flour
mill at Jodhpur (Rajasthan) has the capacity to produce 4800
tonnes per day (tpd) and 2400 tpd of besan and sattu,
respectively. The company markets its products under the Ganesh
brand in East India, Rajasthan, New Delhi, and Uttar Pradesh. The
products are sold mainly in packages of 25 kilo gram (kg) to 100
kg, to wholesalers and institutional buyers.
MAPPL reported a profit after tax (PAT) of INR1.7 million on net
sales of INR224.2 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR2.2 million on net
sales of INR243.3 million for 2007-08.
P & S JEWELLERY: CRISIL Puts 'P4+' Rating on Packing Credit
-----------------------------------------------------------
CRISIL has assigned its 'P4+' rating to the bank facilities of
P & S Jewellery Ltd, which is part of the P & S group.
Facilities Ratings
---------- -------
INR450.0 Million Packing Credit* P4+ (Assigned)
INR150.0 Million Letter of Credit P4+ (Assigned)
* Fully interchangeable with Post Shipment Credit
The rating reflects the P & S group's subdued financial risk
profile and exposure to risks relating to intense competition in
the jewellery industry. These rating weaknesses are partially
offset by the benefits that the group derives from its promoters'
experience in the jewellery industry, and its established
relationships with customers.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of PSJL and P & S Shringar Pvt Ltd, as the
two entities, together referred to as the P & S group, are under a
common management and in the same line of business, and funds are
fungible between them.
About the Group
The P & S group, set up in 1992 by Mr. Chhabildas Shah and
Mr. Paresh Shah, manufactures diamond-studded gold jewellery. The
group's entities, PSJL and PSSPL, cater primarily to the export
and domestic markets, respectively.
PSJL, established in 1992, has its export-oriented unit at Surat.
PSJL reported a profit after tax (PAT) of INR11.6 million on net
sales of INR1539.2 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR11.4 million on net
sales of INR762.7 million for 2007-08.
P & S SHRINGAR: CRISIL Puts 'BB' Rating on INR142.5M Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of P & S Shringar Pvt Ltd, which is part of the P & S
group.
Facilities Ratings
---------- -------
INR142.5 Million Cash Credit BB/Stable (Assigned)
INR100.0 Million Letter of Credit P4+ (Assigned)
The ratings reflect the P & S group's subdued financial risk
profile and exposure to risks relating to intense competition in
the jewellery industry. These rating weaknesses are partially
offset by the benefits that the group derives from its promoters'
experience in the jewellery industry, and its established
relationships with customers.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of PSSPL and P & S Jewellery Ltd, as the
two entities, together referred to as the P & S group, are under a
common management and in the same line of business, and funds are
fungible between them.
Outlook: Stable
CRISIL believes that the P & S group will continue to benefit from
its promoters' experience in the jewellery industry, and its
established relations with customers. The outlook may be revised
to 'Positive' if the group demonstrates significant volume and
revenue growth while maintaining its operating margin and debt
protection metrics. Conversely, the outlook may be revised to
'Negative' if the group's debt protection metrics deteriorate
sharply.
About the Group
The P & S group, set up in 1992 by Mr. Chhabildas Shah and
Mr. Paresh Shah, manufactures diamond-studded gold jewellery. The
group's entities, PSJL and PSSPL, cater primarily to the export
and domestic markets, respectively.
PSSPL, established in 2008, has its manufacturing unit in Mumbai.
PSSPL reported a profit after tax (PAT) of INR6 million on net
sales of INR490.5 million for 2008-09 (refers to financial year,
April 1 to March 31).
PHOENIX FOILS: CRISIL Assigns 'B+' Rating on INR19.6M Term Loan
---------------------------------------------------------------
CRISIL has assigned its ratings of 'B+/Stable/P4' to the bank
facilities of Phoenix Foils Pvt Ltd.
Facilities Ratings
---------- -------
INR75.0 Million Cash Credit B+/Stable (Assigned)
INR19.6 Million Term Loan B+/Stable (Assigned)
INR90.0 Million Letter of Credit P4 (Assigned)
The ratings reflect PFPL's weak financial risk profile marked by
high gearing and weak debt protection measures, and small scale of
operations in a fragmented steel products industry. This rating
weakness is partially offset by the benefits PFPL derives from its
promoter's extensive experience in the steel products industry.
Outlook: Stable
CRISIL believes that Phoenix Foils Pvt Ltd's financial risk
profile will remain constrained on account of its weak capital
structure. The outlook may be revised to 'Positive' if the
company displays sustained growth in its revenues along with
stable profitability and large capital infusion by the promoters.
Conversely, the outlook may be revised to 'Negative' if PFPL
undertakes larger-than-expected, debt-funded capex.
About Phoenix Foils
Incorporated in 2005 by Mr. Mukesh Bhandari and his son, Mr. Kapil
Bhandari, PFPL manufactures thin-gauge stainless-steel, cold-
rolled coils and foils. The company's plant in Umbergaon
(Gujarat) has capacity to manufacture 5000 tonnes of coils and
foils per annum.
PFPL reported a profit after tax (PAT) of INR3.7 million on net
sales of INR392.4 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR3.7 million on net sales
of INR463.9 million for 2007-08.
PSR SILK: CRISIL Rates INR141.70 Million Long Term Loan at 'B'
--------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the term loan
facility of PSR Silk Sarees India Pvt Ltd.
Facilities Ratings
---------- -------
INR141.70 Million Long Term Loan B/Stable (Assigned)
The rating reflects PSR's exposure to project risk, and intense
competition in the textile retail industry. These rating
weaknesses are partially offset by the benefits that PSR derives
from its promoter group's established market position, brand
appeal, and experience in the garment retailing.
Outlook: Stable
CRISIL believes that PSR's showroom will be launched on schedule,
without cost overruns. CRISIL also believes that the promoters
will infuse funds into the company to enable it meet its debt
obligations in a timely manner. The outlook may be revised to
'Positive' if PSR generates more revenues than expected.
Conversely, the outlook may be revised to 'Negative' if the
company undertakes fresh, debt-funded capital expenditure program,
leading to deterioration in its financial risk profile, or if
there are further delays in the commencement of operations of the
showroom.
About PSR Silk
Incorporated in 2007, PSR Silk Sarees India Pvt Ltd is setting up
a textiles retail showroom, spread over 21,000 square feet, in
Coimbatore. The cost of this project is estimated at INR340
million; the project has been funded through a term loan of INR258
million and the remainder through promoters' contribution. The
construction of the showroom is expected to be completed by July
2010; the showroom will be inaugurated soon after. PSR is part of
the PSR group, which belongs to Mr. P S Rangaswamy and his family.
The group has been in the business of spinning of yarn, and
trading in silk sarees and garments, for the past two decades.
PSR & Sons (rated 'B+/Stable' by CRISIL), an associate partnership
firm, is into wholesale and retail sales of silk sarees and
garments.
ROXY ROLLER: CRISIL Lifts Rating on INR5.6 Mil. LT Loan to 'BB-'
----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Roxy
Roller Flour Mills (P) Ltd to 'BB-/Stable/P4+' from
'B+/Stable/P4'.
Facilities Ratings
---------- -------
INR100 Million Cash Credit BB-/Stable (Upgraded from
'B+/Stable')
INR5.6 Million Long-Term Loan BB-/Stable (Upgraded from
'B+/Stable')
INR10 Million Line of Credit P4+ (Upgraded from 'P4')
The upgrade follows improvement in RRFM's financial risk profile
because of equity infusion of INR20 million into the company by
its promoters during 2009-10 (refers to financial year, April 1 to
March 31) and pre-payment of interest-bearing unsecured loans.
The upgrade also factors in the expected robust growth in RRFM's
operating income on the back of significant capacity additions in
its Bengaluru unit.
The ratings reflect RRFM's below-average financial risk profile
and limited pricing power because of the fragmented nature of the
wheat flour products industry. These weaknesses are partially
offset by the benefits that RRFM derives from its established
position in the flour business.
Outlook: Stable
CRISIL believes that RRFM will maintain its business risk profile
on the back of its established position in the flour business and
strong relationships with customers. The outlook may be revised
to 'Positive' if RRFM increases its operating margin, while
maintaining its capital structure, thereby strengthening its debt
protection metrics. Conversely, the outlook may be revised to
'Negative' if the company undertakes a large debt-funded capital
expenditure program, leading to deterioration in its gearing.
About Roxy Roller
RRFM, acquired by Mr. Sivaram Bansal in 1980, is engaged in the
business of converting wheat into flour products. It is a closely
held company, with a wheat processing capacity of 120,000 tonnes
per annum; the company's plants are located in Hyderabad and
Bengaluru.
For 2008-09, RRFM reported a profit after tax (PAT) of INR 7.2
million on net sales of INR1.2 billion, against a PAT of INR 7.8
million on net sales of INR1.05 billion for 2007-08.
SARDA ECO: CRISIL Assigns 'P4+' Rating on INR115MM Bank Debts
-------------------------------------------------------------
CRISIL has assigned its 'P4+' rating to the bank facilities of
Sarda Eco Power Ltd.
Facilities Ratings
---------- -------
INR115 Million Bank Guarantee P4+ (Assigned)
INR143.5 Million Letter of Credit P4+ (Assigned)
The rating reflects SEPL's constrained business risk profile
because of revenue concentration on a single project, small scale
of operations and limited net worth. These rating weaknesses are
partially offset by the benefits that SEPL derives from its
competent management team and promoters' industry experience.
SEPL was set up in 2007 by Mr. Ashok Jajodia, who has more than 50
years of experience through various organizations, including
Sarada Plywood Industries Ltd (SPIL), Dunlop India, and Assam &
Co. SEPL formed a consortium with SPIL, M/S Superec India, and M/S
Holland & Co, and won the contract from Assam Power Generation
Corporation Ltd (APGCL) for constructing a 9-megawatt (MW) hydel
power project on Myntrian river in Assam. Phase I of the project
involves construction of two units of 3 MW each and the Phase II
involves construction of two units of 1.5 MW each.
SEPL has started its operations during the current year 2009-10
(refers to financial year, April 1 to March 31).
SUNIL KUMAR: Delay in Loan Payment Cues CRISIL 'C' Ratings
----------------------------------------------------------
CRISIL has assigned its 'C/P4' ratings to the bank facilities of
Sunil Kumar Agarwal.
Facilities Ratings
---------- ------
INR20 Million Cash Credit C (Assigned)
INR10 Million Standby Line of Credit P4 (Assigned)
INR150 Million Bank Guarantee P4 (Assigned)
The ratings reflect SKA's working-capital-intensive operations,
leading to stretched liquidity, and delay in repayment of debt
obligations, and exposure to risks related to revenue
concentration and small scale of operations. These rating
weaknesses are partially offset by SKA's comfortable revenue
visibility, resulting from its moderate order book and promoters'
experience in the civil construction segment.
Set up as a proprietorship concern in 1990 and reconstituted as a
partnership concern in 2003, SKA undertakes road construction
activities mainly in Chhattisgarh. The firm, registered with the
Public Works Department (PWD) in Chhattisgarh, has executed
projects for PWD, Pradhan Mantri Gram Sadak Yojana, and others in
the state.
SKA reported a profit after tax (PAT) of INR12.7 million on net
sales of INR447.6 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR8.2 million on net sales
of INR533.8 million for 2007-08.
SWATANTRA LAND: CRISIL Rates INR250 Million Term Loan at 'B-'
-------------------------------------------------------------
CRISIL has assigned its 'B-/Negative' rating to the term loan
facility of Swatantra Land & Finance Pvt Ltd.
Facilities Ratings
---------- -------
INR250 Million Term Loan B-/Negative (Assigned)
The rating reflects SLF's exposure to risks relating to the
current slowdown in the real estate business, and those inherent
in the Indian real estate industry. The rating also reflects
SLF's weak financial risk profile marked by a small net worth, a
highly leveraged capital structure, and weak debt protection
metrics. These rating weaknesses are partially offset by the
benefits that SLF derives from its promoters' experience of over
four decades in the real estate development industry.
Outlook: Negative
CRISIL's negative outlook reflects Swatantara Land Finance Private
Ltd's (SLF) stretched liquidity position. The rating may be
downgraded in case of worsening working capital and liquidity
position and/or higher than expected debt funded capital
expenditure plans leading to further strain on the company's
financial risk profile. Conversely, the outlook can be revised to
stable in case of demonstrated improvement in the liquidity
position of the company while maintaining the group's
profitability and achieving expected growth rate in operating
income over the medium term.
About Swatantra Land
Incorporated in 1995 by Mr. V K Madan and Mr. Ajay Madan,
Swatantra Land & Finance Pvt Ltd. is a real estate development
company which is engaged in the construction of various projects,
including residential and commercial townships, shopping malls,
hotels, and information technology (IT) parks. SLF has constructed
Youth Hostel Chanakyapuri and Arunachal Bhawan in New Delhi, and
the World-Bank-funded hospital at Village Mandikhera (Haryana),
and the World-Bank-funded Women Polytechnic at Sector-08,
Faridabad, and apartments for Delhi Development Authority at
Sarita Vihar, Mayapuri, Hari Nagar, Bhodella, and Munirka in New
Delhi.
SLF reported a profit after tax (PAT) of INR13 million on net
sales of INR132 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR9 million on net sales
of INR76 million for 2007-08.
TATA STEEL: Likely to Start Work on Orissa Plant in April
---------------------------------------------------------
The Press Trust of India reports that Tata Steel Ltd. said Tuesday
work on its INR21,000-crore Kalinganagar project in Orissa is
likely start next month. The report says the project is already
delayed by four years due to stiff resistance from locals over the
issues of displacement and rehabilitation.
According to the report, the steel maker has been planning to
build a six-million tonne per annum steel plant at the
Kalinganagar Industrial Complex in Jajpur district of the East
Cost state since 2004.
"We have received 80% of the required land from the state and the
balance will be received soon. We will start construction work
next month," Tata Steel corporate affairs and communications head
Sanjay Chowdhary told PTI.
"The company has already placed orders worth Rs 6,373 crore for
equipment and civil structures for the project. The first
consignment of equipment for the steel melting shop has already
reached Kalinganagar from Germany recently," Chowdhary informed.
On rehabilitation and land acquisition, Chowdhary told PTI, "We
have already shifted around 807 out of the 1,195 families and are
in talks with the locals to rehabilitate the remaining families."
About Tata Steel
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.
TIRUPUR TEXTILES: Weak Liquidity Prompts CRISIL Junk Ratings
------------------------------------------------------------
CRISIL has downgraded its ratings on Tirupur Textiles Pvt Ltd's
bank facilities to 'D/P5' from 'C/P4'.
Facilities Ratings
---------- -------
INR575.0 Million Long-Term Loan D (Downgraded from 'C')
INR25.7 Million Proposed Long-Term D (Downgraded from 'C')
Bank Loan Facility
INR100.0 Million Cash Credit Limits D (Downgraded from 'C')
INR20.0 Mil. Foreign Bill Purchase/ P5 (Downgraded from 'P4')
Foreign Usance Bill Limits
INR201.0 Million Letter of Credit P5 (Downgraded from 'P4')
Limits
INR2.5 Million Bank Guarantee Limits P5 (Downgraded from 'P4')
The downgrade reflects the fact that TTPL's working capital limits
remain over-utilized for over three months, since December 2009.
The over utilization has been caused by TTPL's weak liquidity
because of increase in its working capital requirements following
the commencement of the cotton season.
Incorporated in 1956 by Mr. G T Krishnaswamy Naidu and his son K
Sivasubramaniam, TTPL manufactures hosiery cotton yarn. It has
three manufacturing units, in Coimbatore and Tirupur, and having a
combined installed capacity of 59,376 spindles. TTPL also has 10
windmills, all in Tamil Nadu, translating into a total capacity of
12.5 megawatts.
For 2008-09 (refers to financial year, April 1 to March 31), TTPL
reported a net loss of INR35 million on net sales of INR550
million, against INR17 million and INR652 million, respectively
for 2007-08.
TRV GLOBAL: CRISIL Assigns 'P4' Rating on Various Bank Debts
------------------------------------------------------------
CRISIL has assigned its 'P4' rating to TRV Global Exports Pvt
Ltd's bank facilities.
Facilities Ratings
---------- -------
INR80.00 Million Export Packing Credit P4 (Assigned)
INR10.00 Million Bill Discounting P4 (Assigned)
The rating reflects TRV's below-average financial risk profile,
the susceptibility of its margins to fluctuations in the value of
the Indian rupee, intense competition in the granite exports
market and customer concentration in revenue profile. These
rating weaknesses are partially offset by the benefits that TRV
derives from its promoters' experience in the granite exports
business.
Set up as a partnership firm in 1999 by Mr. N Shivakumar, TRV
exports granite blocks and slabs. Based at Chennai, TRV was
reconstituted as a private limited company in 2007. The company
exports granite to China, Taiwan, and Italy.
TRV reported a profit after tax (PAT) of INR1.3 million on net
sales of INR109.5 million for 2008-09 (refers to financial year,
April 1 to March 31) against a PAT of INR1.5 million on net sales
of INR47.2 million for 2007-08.
VENKATESH LOGISTICS: CRISIL Lifts Ratings on Various Debts to 'BB'
------------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of
Venkatesh Logistics Pvt Ltd to 'BB/Stable/P4+' from 'BB-
/Stable/P4'.
Facilities Ratings
---------- -------
INR280.0 Million Cash Credit* BB/Stable (Upgraded from
'BB-/Stable')
INR50.0 Million Term loan BB/Stable (Upgraded from
'BB-/Stable')
INR20.0 Million Letter of Credit P4+ (Upgraded from 'P4')
* Includes proposed facility of INR18.5 million.
The upgrade reflects the improvement, albeit marginal, in VLPL's
liquidity following the company's reduced reliance on debt to fund
its capital expenditure (capex) and increase in cash credit
limits.
The ratings reflect VLPL's large working capital needs, and
exposure to intense competition. These rating weaknesses are
partially offset by VLPL's strong clientele, and healthy operating
margin.
Outlook: Stable
CRISIL believes that VLPL will maintain its business position on
the back of its long-standing relationships with clients. The
company will also benefit from the expected growth in the road
transportation services industry. The outlook may be revised to
'Positive' if VLPL improves its working capital management,
thereby strengthening its liquidity, or there is a substantial and
sustained increase in the company's revenues and profitability.
Conversely, the outlook may be revised to 'Negative' if VLPL's
capex is larger than expected, thereby adversely affecting its
capital structure, or if there is a decline in its liquidity.
About Venkatesh Logistics
Venkatesh Logistics Pvt Ltd, set up in 2004 by Mr. Suresh Chandra
Khemka, provides transport logistics services, primarily in the
full-truck load segment. VLPL's clientele includes Essar
Logistics, Reliance, Tata Steel (AA\FAA+\Stable), Larsen & Toubro
(AAA\FAAA\Stable\P1+), and IndoRama Synthetics. In 2008-09 (refers
to financial year, April 1 to March 31), Wayzata Indian Ocean, a
private investment fund, acquired a 51 per cent stake in VLPL.
VLPL reported a profit after tax (PAT) of INR1.8 million on net
sales of INR1.1 billion for 2008-09, against a PAT of INR30.9
million on net sales of INR702 million for 2007-08.
ZIRCON EXPORTS: CRISIL Assigns 'B+' Ratings on Various Bank Debts
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to Zircon Exports
Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR22.0 Million Cash Credit B+/Stable (Assigned)
INR26.0 Million Rupee Term Loan B+/Stable (Assigned)
INR200.0 Million Letter of Credit P4 (Assigned)
The ratings reflect Zircon's weak financial risk profile marked by
small net worth and weak debt protection metrics, high level of
inventory, and susceptibility to fluctuations in the value of the
Indian rupee. These rating weaknesses are partially offset by
Zircon's established customer relationships.
Outlook: Stable
CRISIL believes that Zircon will sustain its credit risk profile
over the medium term backed by sustained revenue growth driven by
its established customer relationships. The outlook may be
revised to 'Positive' if Zircon's financial risk profile improves
substantially led by equity infusion or improvement in the
company's working capital management. Conversely, the outlook may
be revised to 'Negative' if the company's debt protection metrics
weaken, most likely because of large, debt-funded capital
expenditure, or if the company's profitability declines
materially, most likely because of the raw material price
volatility.
About Zircon
Zircon, owned and managed by Mr. Sanjeev Jajodia and family since
2000, is into timber processing and trading activities. Zircon
sells its products to real estate builders and to construction
companies. Around 80 per cent of company's revenues are generated
from timber trade and the remainder comes from off-site timber
processing.
Zircon reported a profit after tax (PAT) of INR4 million on net
sales of INR322 million for 2008-09 (refers to financial year,
April 1 to March 31), against a net loss of INR1 million on net
sales of INR304 million for 2007-08.
ZUBERI FIBRES: CRISIL Rates INR400.0 Million Term Loan at 'B+'
--------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to Zuberi Fibres Pvt
Ltd's term loan facility.
Facilities Ratings
---------- -------
INR400.0 Million Term Loan B+/Stable (Assigned)
The rating reflects ZFPL's exposure to offtake-related risks,
large working capital requirements (after commissioning its kraft
paper manufacturing plant), and vulnerability to volatility in
paper and raw material prices. These rating weaknesses are
partially offset by expected improvement in ZFPL's operating
efficiency post commissioning of the plant, and the benefits that
the company derives from its promoters' experience in the paper
industry.
Outlook: Stable
CRISIL believes that ZFPL will commission its plant on schedule
and commence commercial production in June 2010, and that the
company will establish its market position, given its promoters'
experience in the paper industry. The outlook may be revised to
'Positive' in case ZFPL generates more-than-expected sales and
profitability, leading to improved debt protection metrics.
Conversely, the outlook may be revised to 'Negative' if the
offtake from the company's new plant is below expectation, leading
to low cash accruals, or if its profitability takes a hit because
of adverse price movements for industrial paper and wastepaper.
About Zuberi Fibres
Zuberi Fibres Pvt Ltd was set up in May 2003 to manufacture and
trade in industrial paper and board. The company is setting up a
facility for producing duplex and multi-layered kraft paper, with
capacity of 150 tonnes per day, in Aligarh (Uttar Pradesh). The
unit will also be equipped with a 3-megawatt power generation
plant based on rice-husk combustion, which meets most of ZFPL's
power requirements.
The total capital outlay on the project is expected to be around
INR640 million. Of this, INR400 million has already been tied up
from State Bank of Bikaner & Jaipur and Bank of India. The
remaining amount is to be funded through equity infusion by the
promoters.
=================
I N D O N E S I A
=================
BERLIAN LAJU: Fitch Affirms Issuer Default Ratings at 'B'
---------------------------------------------------------
Fitch Ratings has removed Indonesia-based PT Berlian Laju Tanker
Tbk's ratings from Rating Watch Negative and affirmed its Long-
term foreign and local currency Issuer Default Ratings at 'B'.
The Outlook on the IDRs is Negative. Fitch has also affirmed the
'CCC' rating on BLT's US$400 million senior unsecured notes due
2014, which were issued by BLT Finance B.V. and guaranteed by BLT
- this is based on a recovery rating of 'RR6'.
The removal of the RWN status follows BLT's announcement on 19
March 2010 that it has withdrawn from the voluntary offer to
acquire Camillo Eitzen & Co ASA, an Oslo-based financially
distressed shipping company. BLT's ratings were placed on RWN in
October 2009 following the announcement of the proposed
acquisition (see Fitch's announcement titled, "Fitch Places
Berlian Laju Tanker on Watch Negative Following Planned
Acquisition of Camillo Eitzen", dated October 5, 2009). Despite
the additional equity BLT planned to raise on the back of this
transaction, Fitch viewed that the acquisition could further
weaken BLT's already weak financial profile.
BLT may still raise equity via a rights issue, despite its
withdrawal of the acquisition offer; however, it is possible that
BLT may resume acquisition discussions with shareholders of CECO
after the completion of the rights issue. In such a case, Fitch
will review the new structure and take appropriate rating action.
BLT's IDRs and Negative Outlook reflect the company's high
financial leverage and its challenging liquidity position amidst a
weak shipping market. That said, BLT raised US$100 million via a
convertible bond (which is being upsized to US$125 million)
issuance in February 2010, and it was able to make some headway in
securing funding for its committed capex in 2010 (of around
US$130m). Furthermore, BLT had US$280 million in cash reserves as
at September 2009, lending support to its liquidity. "BLT's near-
term liquidity position has improved, but its liquidity position
will remain challenged for at least two more years," says Buddhika
Piyasena, Director of Fitch's Asia-Pacific Corporates Ratings
team. This is due to BLT's unfunded committed capex of nearly
US$300m in 2011 and its limited headroom over the minimum loan-to-
value covenants. At the same time, BLT has been engaged in
opportunistic capex to grow its domestic operations, which could
lead to further debt and reduced cash balances.
Fitch expects pressure on chemical tanker rates to ease in 2010
and BLT's revenues and earnings to gradually stabilize over the
coming year. However, given the high indebtedness of BLT, its
interest coverage and financial leverage will remain weak. In the
nine months ended September 2009, BLT's fund flow from operations
to interest coverage stood at 2.5x and leverage measured by
adjusted debt net of cash to operating EBITDAR stood at 7.3x.
A significant deterioration in liquidity due to BLT's failure to
secure adequate funding for its committed capex, and/or a
withdrawal of credit facilities/acceleration of debt repayments
due to breach of financial covenants, may lead to a downgrade.
Stabilization of the ratings is not expected until BLT's liquidity
position and its overall financial profile show improvements,
which the agency believes is unlikely before end-2011.
GAJAH TUNGGAL: Moody's Upgrades Corporate Family Rating to 'B3'
---------------------------------------------------------------
Moody's Investors Service has upgraded to B3 from Caa1 the
corporate family rating for PT Gajah Tunggal Tbk (GT) and its
senior secured rating for the US$435 million bonds issued by GT
2005 Bonds BV, and guaranteed by GT. The outlook for the ratings
is stable.
"The rating upgrade captures GT's better-than-expect operating
performance and credit metrics, as the company enjoys the
beneficial effects of a resilient domestic economy in Indonesia
and lower raw material prices," says Wonnie Chu, a Moody's
Analyst.
GT reported very strong consolidated credit metrics for FY2009,
including Debt/EBITDA of below 3x and RCF/net debt of over 30%,
and which both exceeded Moody's expectations. Although its credit
metrics will likely moderate in FY2010 -- on the back of
increasing raw material prices -- projected Debt/EBITDA of around
5x in the next 1-2 years remains strong for the B3 rating level.
"In addition, the improved performance has translated into strong
balance sheet liquidity for the company," says Chu.
However, the B3 rating also reflects Moody's concerns over GT's
exposure to volatile raw material prices and foreign exchange
fluctuations. Moreover, the rating is constrained by the
company's history of debt restructuring and weak back-up liquidity
arrangements.
The stable outlook reflects Moody's expectation that GT can manage
its capital expenditures with its balance sheet cash and operating
cash flow in the absence of any material debt repayments in the
next 12 months.
The rating could face upward pressure if GT can demonstrate an
ability to generate sustainable cash flow generation through the
cycle and, at the same time, if there is an improvement in debt
leverage, such that adjusted debt/EBITDA falls below 4.0 -- 5.0x
on a sustained basis.
On the other hand, GT's ratings could experience downward pressure
if its credit profile weakens, such that there is little buffer
for its interest payments and debt obligations, or Debt/EBITDA
exceeds 7.0 -- 8.0x over the cycle.
Such developments could be due to: 1) an industry downturn beyond
Moody's expectations; 2) the inability of the company to pass on
further increases in raw material costs, 3) unforeseen increases
in product liabilities; or 4) an aggressive dividend payout
policy, which returns funds to shareholders after the interest
step-up date.
The last rating action was taken on Jul 27, 2009, when the
company's corporate family and senior unsecured bond ratings were
upgraded to Caa1.
PT Gajah Tunggal Tbk is Southeast Asia's largest integrated tire
manufacturer. Its key products include tires for motorcycles,
passenger cars and commercial and heavy equipment vehicles. Giti
Tire, a Chinese tire manufacturer, is a 44.83% shareholder in GT
through its subsidiary, Denham Pte Ltd.
PERUSAHAAN LISTRIK: Plans to Issue IDR3 Tril. in Bonds in June
--------------------------------------------------------------
The Jakarta Globe reports that PT Perusahaan Listrik Negara plans
to issue IDR3 trillion (US$330 million) worth of bonds in June to
help finance its capital expenditure this year.
According to the report, Yusuf Hamdani, PLN's head of corporate
finance, said the issue will be a combination of rupiah-
denominated Islamic bonds and conventional bonds. The proceeds of
which will help finance construction of the company's power-
transmission infrastructure, the report notes.
The company is in the process of selecting the underwriters for
the offering, he said.
Separately, Jakarta Globe reports that PLN has secured $100
million in loans from the Asian Development Bank and Agence
Francaise de Developpement, a France-based donor institution, to
help finance the Java-Bali distribution-grid project.
The Globe says the ADB loan has a 25-year term, including a five-
year grace period, with interest determined in accordance with its
LIBOR-based lending facility. The Agence Francaise de
Developpement loan, meanwhile, has a 15-year term, including a
five-year grace period, with interest set in accordance with the
Euro Interbank Offered Rate.
About PLN
Indonesian state utility firm PT Perusahaan Listrik Negara --
http://www.pln.co.id/-- transmits and distributes electricity
to around 30 million customers, roughly 60% of Indonesia's
population. The Indonesian Government decided to end PLN's
power supply monopoly to attract independents to build more
capacity for sale directly to consumers, as many areas of the
country are experiencing power shortages.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
September 18, 2009, Moody's Investors Service upgraded to Ba2 from
Ba3 the corporate family rating and senior unsecured bond rating
of PT Perusahaan Listrik Negara. This rating action follows
Moody's decision to upgrade to Ba2 from Ba3 the Indonesian
government's long-term foreign-currency and local-currency
ratings. The ratings outlook is stable, consistent with the
outlook on the government ratings.
=========
J A P A N
=========
ELPIDA MEMORY: USITC to Investigate Infineon's Patent Complaint
---------------------------------------------------------------
The U.S. International Trade Commission will investigate Infineon
Technologies AG's patent-infringement complaint against Elpida
Memory Inc., The Taipei Times reports.
According to the report, the Washington-based agency said it would
consider the complaint filed last month and decide whether to
block U.S. imports of computer-memory chips by Elpida. Infineon,
Europe's second-largest chipmaker, claimed that Elpida infringes
on four patents related to DRAM chips.
The ITC said that in addition to Elpida, the complaint also names
Kingston Technology Co of Fountain Valley, California; Taiwanese
memory module suppliers A-Data Technology Co., Apacer Technology
Inc. and Transcend Information Inc.; Buffalo Technology Inc of
Nagoya, Japan, and Austin, Texas; Corsair Memory of Fremont,
California; and Mushkin Inc of Englewood, Colorado.
Based in Neubiberg, Germany, Infineon Technologies AG designs,
develops, manufactures, and markets a range of semiconductors and
systems solutions used in a variety of microelectronic
applications, including computer systems, telecommunications
systems, consumer goods, automotive products, industrial
automation and control systems, and chip card applications.
About Elpida Memory
Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a
Japan-based company principally engaged in the development,
design, manufacture and sale of semiconductor products, with a
focus on dynamic random access memory (DRAM) silicon chips. The
main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile
RAM and XDR DRAM, among others. The Company distributes its
products to both domestic and overseas markets, including the
United States, Europe, Singapore, Taiwan, Hong Kong and others.
The company has eight subsidiaries and two associated companies.
* * *
As of December 9, 2009, Elpida Memory Inc. continues to carry
Mikuni Credit Ratings 'B' mortgage debt rating and 'B' senior debt
ratings.
=========
K O R E A
=========
SSANGYONG MOTOR: Daewoo Motor Sales to Sell Ssangyong Vehicles
--------------------------------------------------------------
Ssangyong Motor said Tuesday it signed a memorandum of
understanding with Daewoo Motor Sales for a license to sell
Ssangyong's Chairman W, Chairman H and Rodius in South Korea, The
Chosun Ilbo reports.
The report says the two firms agreed to negotiate particulars such
as the supply price and sale conditions by the end of this month
before signing the final deal.
Under the MOU, says Chosun Ilbo, Ssangyong Motor will receive
KRW20 billion from Daewoo Motor Sales to assist production within
three days after the formal signing.
Daewoo Motor Sales is a former auto dealer for GM Daewoo Auto &
Technology Co.
Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co.
Ltd. -- http://www.smotor.com/-- is a manufacturer of automobiles
primarily engaged in production of sports utility vehicles (SUVs)
and recreational vehicles (RVs). The company's production is
grouped into four lines: SUVs under brand names REXTON, KYRON and
ACTYON; sports utility trucks (SUTs) under the brand name ACTYON
Sports; passenger cars under brand name Chairman, and multi-
purpose vehicles (MPVs) under the brand name Rodius. It also
provides automobile parts such as coolers, diesel engines and
others.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 12, 2009, Ssangyong Motor Co. filed for receivership with the
Seoul Central District Court to stave off a complete collapse. In
February, the Seoul Central District Court accepted Ssangyong's
application to rehabilitate under court protection. The court
named former Hyundai Motor Co. executive Lee Yoo-il and Ssangyong
executive Park Young-tae to run the automaker.
A TCR-AP report on Sept. 16, 2009, said Ssangyong Motor submitted
a revival plans to the Seoul Central District Court seeking
capital reduction and a debt-for-equity swap by creditor. A
South Korean bankruptcy court approved in December Ssangyong
Motor's restructuring plan despite opposition by some bondholders,
the TCR-AP reported on Dec. 18, 2009. Yonhap News said Ssangyong
vowed to get itself in order over the next three years.
====================
N E W Z E A L A N D
====================
CRAFAR FARMS: Natural Dairy Buys Crafar Assets
----------------------------------------------
The China Jin Hui Mining Corporation -- recently renamed Natural
Dairy (NZ) Holdings -- said it has agreed to buy the Crafar family
farms as well as other assets including farmland, cattle, and milk
powder production plant.
Natural Dairy said in a statement to the Hong Kong Stock Exchange
the deal will be paid for in cash and through the issue of
convertible bonds.
Crafar Farms, New Zealand's largest family owned dairy business,
runs about 20,000 milking cows, and carries about 10,000 of other
stock. The company employs 200 staff.
Crafar Farms was placed in receivership by its lenders Westpac
Banking Corp., Rabobank Groep and PGG Wrightson Finance. The
banks are owed around NZ$200 million and put KordaMentha partners
Michael Stiassny and Brendon Gibson in as receivers after Crafar
Farms breached covenants on its loans.
The New Zealand Herald said CraFarms' banks have been working with
the Ministry of Agriculture and Forestry, Federated Farmers and
Fonterra to ease the Crafars out of their business. This follows
multiple convictions for environmental lapses and animal neglect
in recent years and the revelation on September 28, 2009, from
interest.co.nz of animal neglect on one of its large farms in the
King Country near Benneydale.
NEW ZEALAND WINDFARMS: Sell Shares at Deep Discount; CEO to Leave
-----------------------------------------------------------------
The National Business Review reports that NZ Windfarms Limited is
losing its chief executive while carrying out a deeply discounted
capital raising to remain solvent.
The Review relates the company's chief executive Steve Cross has
advised that for personal reasons he does not wish to extend his
contract, which expires on June 30.
Bloomberg News reports that NZ Windfarms said Friday it will sell
shares at a 62% discount to help fund the expansion of its wind
farm on New Zealand's North Island.
According to Bloomberg, the company plans to raise NZ$31.4 million
offering shareholders eight new shares for every three held at a
price of 15 New Zealand cents apiece. The sale is not
underwritten and a placement may be made to institutions and
shareholder Vector Ltd. to meet any shortfall, Bloomberg says.
The Review, citing an independent report from Northington
Partners, notes that NZ Windfarms would become insolvent without
additional capital.
"If for any reason the company cannot raise the capital to
complete the development, the consequences will be dire," the
report said.
According to the Review, the developer of the Te Rere Hau windfarm
in the Manawatu is 19.9% owned by Vector Ltd, which has provided
it with a NZ$6.5 million bridging loan. A dispute with turbine
supplier Windflow Technology Ltd has delayed capital raising
plans.
The capital raising detailed on Friday must be approved by
shareholders at a special meeting on April 6, the Review notes.
About NZ Windfarms
Christchurch, New Zealand-based NZ Windfarms Limited --
http://www.nzwindfarms.co.nz/-- is engaged in the development
and operation of wind power generation assets for the purpose of
generating and selling electricity. The company's Te Rere Hau
Wind Farm is a 48.5-megawatt wind farm situated on the Tararua
Ranges near Palmerston North. The first stage of the Te Rere
Hau wind farm consists of five New Zealand-made Windflow 500
turbines (2.5 megawatts capacity). NZ Windfarms has arranged a
connection to the local network for the first stage of the Te
Rere Hau wind farm. The company offers a variety of services
associated with wind farm development and operation, such as new
wind farm site identification; wind resource surveying and
assessment; securing wind generation rights; obtaining resource
consents, developing wind farm infrastructure, such as roading,
and onsite and offsite electricity networking; procuring
appropriate wind turbines; providing ongoing support and
maintenance of the wind farm installation, and marketing the
electricity production.
RESPORT: Placed in Liquidation Over Unpaid Debts to Adidas NZ
-------------------------------------------------------------
Ben Heather at The Press reports that embattled Lane Walker Rudkin
boss Ken Anderson has lost control of another company, with
Resport placed in liquidation last week following a petition by
former partner Adidas New Zealand.
Resport was the parent company of sportswear chain Champions of
the World, which was sold in December to help pay Mr. Anderson's
creditors, including a supplier which subsequently withdrew its
liquidation order, according to the Press.
The Press relates Adidas country manager David Huggett said debt
to Adidas, owed for clothing supplied to the Champions of the
World chain, was never paid.
According to the report, Mr. Anderson has been under financial
pressure since his Christchurch clothing manufacturer Lane Walker
Rudkin Industries, and related companies, were placed into
receivership last April, owing Westpac Bank about $120 million.
LWR had a license to produce Adidas teamwear for local sporting
clubs and after it went into receivership Mr. Huggett was reported
as saying the two companies had a close relationship and Adidas
would continue to support LWR.
The Press notes that liquidator Shaun Adams, of KPMG, would not
disclose how much Resport owed Adidas, except that it was a
"seriously large amount of money".
=====================
P H I L I P P I N E S
=====================
ROYAL BANK: Gaisano Eyes Dormant RBS Stock Brokerage Seat
---------------------------------------------------------
Doris Dumlao at the Philippine Daily Inquirer reports that a
member of the Gaisano family has offered to take over the dormant
stock brokerage seat of the Royal Bank of Scotland. The Inquirer
relates the Philippine Stock Exchange said in a memorandum that
the investor, Geraldine Gaisano Anggala, had filed an application
to acquire the trading rights of RBS Asia Securities Inc.
Ms. Gaisano is part of the family that owns and operates the
Gaisano shopping malls, the Inquirer says.
The Royal Bank of Scotland Group plc (NYSE:RBS) --
http://www.rbs.com/-- is a holding company of The Royal Bank of
Scotland plc (Royal Bank) and National Westminster Bank Plc
(NatWest), which are United Kingdom-based clearing banks. The
company's activities are organized in six business divisions:
Corporate Markets (comprising Global Banking and Markets and
United Kingdom Corporate Banking), Retail Markets (comprising
Retail and Wealth Management), Ulster Bank, Citizens, RBS
Insurance and Manufacturing. On October 17, 2007, RFS Holdings
B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V.,
Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and
controlled by RBS, completed the acquisition of ABN AMRO Holding
N.V. (ABN AMRO). In July 2008, the company disposed its entire
interest in Global Voice Group Ltd.
* * *
As reported by the Troubled Company Reporter-Europe on Dec. 22,
2009, Fitch Ratings upgraded The Royal Bank of Scotland Group's
(RBS Group) and The Royal Bank of Scotland's Individual Ratings to
'D/E' from 'E' and removed the Rating Watch Positive. The upgrade
of the Individual Ratings reflects improvements in the group's
capital combined with some progress in restructuring the balance
sheet.
===========
T A I W A N
===========
NANYA TECHNOLOGY: Wins Patent Case Against LSI Corp.
----------------------------------------------------
The Taipei Times reports that Nanya Technology Corp. won a patent
case against LSI Corp. after the U.S. International Trade
Commission ruled that the Taiwanese chipmaker did not infringe on
LSI's intellectual property rights.
The report relates the commission said in the final determination
that claims leveled by LSI against Nanya Technology and other
companies, including Taiwan's Powerchip Semiconductor Corp., were
invalid and no violation was found.
"We are pleased with the final determination of this ITC action.
Nanya Technology has always respected intellectual property,? the
report cited company spokesman Pai Pei-lin as saying in the
statement.
Based in Taiwan, Nanya Technology Corp. (TPE:2408) --
http://www.nanya.com/-- is principally engaged in the
manufacture, development and sale of memory products. The company
primarily offers dynamic random access memory (DRAM) chips,
including double data rate (DDR) DRAM chips, DDR2 DRAM chips and
DDR3 DRAM chips; DRAM modules, such as 200-pin DDR small outline
(SO) dual in-line memory modules (DIMMs), 184-pin registered and
unbuffered DDR synchronous dynamic random access memory (SDRAM)
DIMMs, 200-pin DDR2 SODIMMs, 240-pin unbuffered and registered
DDR2 SDRAM DIMMs and others. DRAMs are used as data storage units
for computer, communications and consumer (3C) products.
Nanya Technology posted a net loss of NT$35.23 billion, or NT$7.54
per diluted share, for the 2008 fiscal year, compared with a
net loss of NT$12.46 billion in the prior year.
In the fiscal year of 2009, the company posted unaudited sales
revenue of NT$42.456 billion with an operating loss of NT$16.076
billion and a net loss of NT$20.742 billion.
===============
X X X X X X X X
===============
* S&P Downgrades Ratings on Three Asia-Pacific Tranches to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on three
tranches of three Asia-Pacific (excluding Japan) collateralized
debt obligations to 'D' from 'CCC-'.
The rating downgrades to Corsair (Jersey) No. 2 Ltd. Series 89
and 91 reflect the realized interest losses incurred by the
investors. The transaction portfolios had suffered several credit
events, resulting in aggregate losses that exceeded the available
subordination and reduced the principal amounts of the notes.
There have been interest payment shortfalls on the most recent
interest payment dates.
S&P has lowered the rating on Thunderbird Investments PLC Series
21 due to the interest and principal losses incurred by the
investor. The transaction has been unwound, during which, several
credit events occurred in the portfolio and caused an aggregate
loss that exceeded the available subordination. Consequently, the
funds available for the principal payment of the notes have been
reduced.
Ratings Lowered
Transaction Rating To Rating From
----------- --------- -----------
Thunderbird Investments PLC Series 21 D CCC-
Corsair (Jersey) No. 2 Ltd. Series 89 D CCC-
Corsair (Jersey) No. 2 Ltd. Series 91 D CCC-
*********
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.
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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 T. Fernandez, Joy A. Agravante, Frauline S. Abangan,
and Peter A. Chapman, Editors.
Copyright 2010. 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.
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