/raid1/www/Hosts/bankrupt/TCRAP_Public/100407.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
Wednesday, April 7, 2010, Vol. 13, No. 067
Headlines
A U S T R A L I A
ADELAIDE MANAGED: Seeks to Wind Up AU$188 Million Listed Fund
PERPETUAL TRUSTEE: Fitch Takes Rating Actions on Five Tranches
PERPETUAL TRUSTEE: S&P Raises Ratings on Rated Subprime Classes
C H I N A
ASIA8 INC: Recurring Losses Prompt Going Concern Doubt
GENERAL MOTORS: China Sales Jump 68% on Government Stimulus
SHANGHAI PUDONG: Targets at Least 25% Profit Growth This Year
H O N G K O N G
GEMSTAR ASIA: Commences Wind-Up Proceedings
GRANDARY DEVELOPMENT: Placed Under Voluntary Wind-Up Proceedings
GRAND MARINE: Members' and Creditors Meetings Set for April 7
HK COPYRIGHT: Placed Under Voluntary Wind-Up Proceedings
KENDRO LABORATORY: Members' Final Meeting Set for May 5
KENT INTERNATIONAL: Placed Under Voluntary Wind-Up Proceedings
KLA-TENCOR MIE: Chen and Wong Step Down as Liquidators
MAIDENS INTERNATIONAL: Members' Final Meeting Set for May 3
MANNING INTERNATIONAL: Creditors' Proofs of Debt Due May 3
MEDIA PARTNERS: Philip Brendan Gilligan Appointed as Liquidator
MOTOROLA AIRCOMMUNICATIONS: Creditors' Proofs of Debt Due May 3
NEVER NO: Placed Under Voluntary Wind-Up Proceedings
OFFICEMAX HK: Philip Brendan Gilligan Appointed as Liquidator
PAK SHING: Placed Under Voluntary Wind-Up Proceedings
PETER BLACK: Commences Wind-Up Proceedings
PRO STEP: Creditors' Proofs of Debt Due May 7
RECOTON (HK): Creditors' and Members Meetings Set for April 12
RIGHT TOP: Creditors' Meeting Set for April 8
SINDERLAND LIMITED: Placed Under Voluntary Wind-Up Proceedings
SOLAR GAIN: Placed Under Voluntary Wind-Up Proceedings
I N D I A
ANSAL HOUSING: Fitch Assigns National Long-Term Rating at 'BB-'
DANIA ORO: Delays in Loan Repayment Cues CRISIL 'B-' Ratings
DHRUV ACADEMY: Fitch Assigns 'B+' National Long-Term Rating
DIAGEMS EXPORTS: CRISIL Rates INR127MM Packing Credit at 'P4'
DURGAPUR MEDICAL: CRISIL Places 'B+' Ratings on Various Bank Debts
ECP INDUSTRIES: Weak Liquidity Prompts CRISIL 'C' Ratings
EROS MOTORS: Small Net Worth Prompts CRISIL 'BB+' Ratings
ETHNIC AGROS: CRISIL Rates INR120MM Cash Credit at 'B+'
ETHNIC TOBACCO: CRISIL Assigns 'B+' Rating on INR370MM Cash Credit
FORD MOTOR: India Sales Up 203% to 9,478 Units in March 2010
INSTA EXHIBITIONS: CRISIL Rates INR95 Mil. Cash Credit at 'BB+'
KARUR VYSYA: Fitch Affirms Individual Rating at 'D'
KRISHNA CORPORATION: Low Net Worth Cues CRISIL 'BB+' Ratings
KULGAON BADLAPUR: Fitch Assigns National Long-Term Rating at 'BB+'
MEENAKSHI ENERGY: Fitch Assigns 'BB+' Rating on Bank Loans
MOODS HOSPITALITY: Fitch Assigns 'B' National Long-Term Rating
NEELKAMAL STEELS: CRISIL Lifts Rating on INR42.5MM Loan to 'BB-'
PREM MOTORS: CRISIL Reaffirms 'BB' Ratings on Various Bank Debts
ROLLY JEWELLERY: CRISIL Places Junk Ratings on Various Bank Debts
SAMTEX FASHIONS: Fitch Assigns 'BB' National Long-Term Rating
SLN COFFEE: CRISIL Reaffirms 'B' Rating on INR260 Mil. Term Loan
STANGL PICKLES: CRISIL Assigns 'P4' Ratings on Various Bank Debts
SURAJ PRECISION: CRISIL Assigns 'BB' Rating on INR51.6MM LT Loan
UTTAM SUGAR: Fitch Assigns National Long-Term Rating at 'B'
VIJAI SPINNERS: CRISIL Assigns 'BB-' Rating on INR105MM Term Loan
VXL INSTRUMENTS: CRISIL Places 'B-' Rating on INR108MM Cash Credit
WOODWORTH TREXIM: CRISIL Puts 'BB-' Rating on INR11MM Cash Credit
YOGBHAN CONSULTANTS: CRISIL Reaffirms Rating on INR25MM Bank Debts
I N D O N E S I A
ARTHASAKA INTI: Gov't. Suspends Operations Over Regulations
BUKIT MAKMUR: Delta and Recapital Swap Could Affect Moody's Rating
ENERGI MEGA: 2009 Loss Widens to IDR1.73 Tril. on Lower Oil Prices
LIPPO KARAWACI: Mulls $350 Mil. Global Bond Issue This Year
PT BUMI: S&P Puts BB/Stable/-- Regional Scale Rating
SUPRAWIRA FINANCE: Gov't. Suspends Operations Over Regulations
J A P A N
ARCH FINANCE: Moody's Confirms 'Ba1' Rating on Series 2007-1 Notes
JAPAN AIRLINES: Says No Decision Yet on Job Cuts
JLOC 36: Fitch Downgrades Ratings on Class D Notes to 'CC'
JLOC VII: Fitch Downgrades Ratings on Class D Notes to 'CC'
JLOC XXX: S&P Downgrades Ratings on Class D Floating-Rate Certs.
JLOC XXXIV: Moody's Reviews Ratings on Various Classes of Notes
JLOC XXXIV: S&P Downgrades Rating on Class D Certs. to 'BB'
L-JAC8 TRUST: Moody's Takes Rating Actions on Five Classes
ORSO FUNDING: Fitch Affirms Ratings on Various Classes of Notes
SOFTBANK CORP: May Acquire 50% Stake in JVC's Victor Unit
TORNADO FILM: Files For Bankruptcy in Tokyo District Court
UDMAC-J1 TRUST: S&P Downgrades Ratings on Two Classes to 'CCC'
L E B A N O N
BYBLOS BANK: Fitch Upgrades Issuer Default Ratings to 'B'
* LEBANON: Fitch Upgrades Issuer Default Ratings to 'B'
M A L A Y S I A
CAB CAKARAN: Winding-Up Petition Served Against Unit
PRIME UTILITIES: Posts MYR4.12 Mil. Net Loss in Qtr. Ended Jan. 31
RHYTHM CONSOLIDATED: Court Issues Wind-Up Order Against Unit
TENGGARA OIL: Incurs MYR422,000 Net Loss in Qtr. Ended January 31
N E W Z E A L A N D
VISION SECURITIES: S&P Downgrades Issuer Default Rating to 'D'
P A K I S T A N
PAKISTAN MOBILE: S&P Raises Corporate Credit Rating to 'B-'
P H I L I P P I N E S
BENGUET CORP: Ends Joint Venture with Balatoc Tribe
S I N G A P O R E
GEMS TV: U.S. Unit Seeks Bankruptcy Protection to Sell Assets
T A I W A N
AU OPTRONICS: To Acquire Toshiba Mobile's Subsidiary in Singapore
CHINA BILLS: Fitch Affirms Support Rating Floor at 'B+'
FAR EASTERN: Fitch Affirms Individual Rating at 'C/D'
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A U S T R A L I A
=================
ADELAIDE MANAGED: Seeks to Wind Up AU$188 Million Listed Fund
-------------------------------------------------------------
The Sydney Morning Herald reports that the Bendigo Bank-backed
Adelaide Managed Funds will seek unitholder approval to wind-up a
AU$188 million listed investment fund which has exposure to
investment schemes promoted by collapsed agribusiness manager
Great Southern.
According to the report, Adelaide Managed Funds said it will push
ahead with an orderly wind down of the Adelaide Managed Funds
Asset Backed Yield Trust with funds to be returned to unitholders
over the next 6 to 18 months.
The Herald relates Adelaide Managed Funds said the wind down was
due to loans in the fund maturing and expects a "substantial'
amount of the assets to be returned to unitholders.
"The board of AMF unanimously concluded that subject to no
superior proposal being forthcoming of a favorable change in the
market conditions, this course of actions is in the best interests
of unitholders," the report cited Adelaide Managed Funds in a
statement.
The Herald recalls that Adelaide Yield Trust's last year hiked its
impairment provision, from AU$4.3 million to AU$16.7 million
against its indirect exposure to the collapsed agricultural
manager Great Southern group.
Adelaide Managed Funds Limited was established in 1998 and is a
subsidiary of Bendigo and Adelaide Bank Limited. As at
December 31, 2007, Adelaide Managed Funds was responsible for the
management of over AU$3 billion in assets.
PERPETUAL TRUSTEE: Fitch Takes Rating Actions on Five Tranches
--------------------------------------------------------------
Fitch Ratings has upgraded two and affirmed five tranches of notes
issued by Perpetual Trustee Company Limited, acting as trustee of
GPAC Series 2008 AN1 Trust. This transaction is collateralized by
a pool of non-conforming residential mortgages originated by GMAC
RFC Australia Pty Limited. The rating actions are listed below:
-- AU$40.7m Class AA (AU3FN0005732) affirmed at 'AAA'; Outlook
Stable; Loss Severity Rating 'LS-2';
-- AU$20.9m Class AB-L (AU3FN0005740) affirmed at 'AAA'; Outlook
Stable; Loss Severity Rating 'LS-3';
-- AU$14.0m Class B (AU3FN0005765) upgraded to 'AAA' from 'AA';
Outlook Stable; Loss Severity Rating 'LS-3';
-- AU$11.0m Class C (AU3FN0005773) upgraded to 'AA' from 'A';
Outlook Stable; Loss Severity Rating 'LS-3';
-- AU$10.0m Class D (AU3FN0005781) affirmed at 'BBB'; Outlook
Stable; Loss Severity Rating 'LS-3';
-- AU$7.5m Class E (AU3FN0005799) affirmed at 'BB'; Outlook
Negative; Loss Severity Rating revised to 'LS-3' from 'LS-5';
and
-- AU$7.0m Class F (AU3FN0005807) affirmed at 'B-'; Outlook
Negative; Loss Severity Rating assigned at 'LS-3'.
-- Class AB-S was paid in full in June 2009.
"30+ day arrears have consistently been in excess of 15% for this
transaction and, as at 28 February 2010, stood at 17.04%," notes
Leanne Vallelonga, Associate Director in Fitch's Structured
Finance team. "Fitch has been advised that the majority of
borrowers who are 30+ days in arrears claim that over-commitment
is a key driver, exacerbated by business failure".
The weighted average interest rate on the mortgages has been above
9% since closing, having peaked at over 11% in May 2008. The
outlook for Australian interest rates in 2010 continues to be
towards a tightening bias, which Fitch expects will add pressure
to borrowers within this transaction, particularly if faced with
failing businesses or employment pressures.
Whilst subordination for each of the rated notes has increased
since issuance, the unrated Class H note remains charged-off in
excess of AUD5.0m. Fitch believes the available credit
enhancement for Classes AA, AB-L, B and C is sufficient to support
the ratings listed above. Additionally, there is sufficient
credit enhancement to support the current ratings of Classes D, E
and F, though in the long-term these notes have a higher potential
of being impacted by negative economic conditions and increased
interest rates.
Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to June
2008. Unlike a Rating Watch which notifies investors that there
is a reasonable probability of a rating change in the short term
as a result of a specific event, rating Outlooks indicate the
likely direction of any rating change over a one- to two-year
period.
PERPETUAL TRUSTEE: S&P Raises Ratings on Rated Subprime Classes
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on all rated
classes of subprime and nonconforming residential mortgage-backed
securities issued by Perpetual Trustee Company Ltd. as trustee for
Q9 Trust. The rating upgrades reflect S&P's opinion that the
rated notes are adequately supported to withstand stresses that
are commensurate with the higher rating levels.
The prepayment rate of the Australian housing loans in the
portfolio has been consistently above the industry average until
recent months. Further, the portfolio balance has amortized to
AU$67 million or less than 12% of the initial balance of
AU$580 million. Meanwhile, close to AU$12.7 million of excess
spread, after covering prior portfolio losses, has been
accumulated in a reserve to absorb future losses. To date, there
have been no charge-offs to any notes, which would not occur until
the AU$12.7 million uncapped reserve is depleted. S&P's
assessment indicates that the excess spread continues to build up
strongly to absorb some future losses, despite the increasing
weighted-average funding cost under the current sequential-pay
mechanism.
The portfolio performance has been severely affected by the
economic slowdown, which resulted in declining borrower disposable
income and higher unemployment. In contrast with the decreasing
arrears trend in the industry, the transaction's arrears levels
consistently stayed above the industry average, with the greater-
than-90 days arrears rising further. S&P believes this percentage
increase in part reflects the reducing portfolio balance, and more
significantly, the loss mitigation strategy. Although the loan
servicer has entered into payment arrangements with some borrowers
in financial distress, the company continues to track them as
delinquent borrowers. Recovery on foreclosed loans has had
minimal losses to date.
The remaining portfolio consists of fully amortizing loans that
are well-diversified geographically and have a weighted-average
seasoning of more than five years. About 73.3% of the loans have
a loan-to-value ratio of 80% or below, while about 60% are low
documentation loans and 40% are for investment purposes. The
average loan size is about AU$180,000, with none higher than
AU$900,000.
While the high arrears levels are due to adverse selection at the
tail-end, the transaction has adequate credit enhancements for the
rated notes and minimal negative portfolio-yield risk at the tail-
end. The notes can be redeemed at the earlier of December 2010 or
when the portfolio reduces to 5% of its original balance; however,
S&P's analysis assumes that clean-up calls would not be exercised.
Ratings Raised
Q9 Trust
Class Rating To Rating From
----- --------- -----------
A AAA AA
B AA+ A+
C A BBB+
D BBB BB
E BB B
=========
C H I N A
=========
ASIA8 INC: Recurring Losses Prompt Going Concern Doubt
------------------------------------------------------
Asia8, Inc. filed on March 31, 2010, its annual report on Form
10-K for the year ended December 31, 2009.
Kostandinos Jerry Georgatos, in Hayward, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern. The independent auditors noted that of the
Company's recurring losses from operations and net capital
deficiency.
The Company reported a net loss of US$1,373,535 on no revenue for
2009, compared with a net loss of US$130,656 on $693,715 of
revenue for 2008.
The Company's balance sheet as of December 31, 2009, showed
US$2,207,863 in assets, US$139,028 of debts, and US$2,068,835 of
stockholders' equity.
A full-text copy of the annual report is available for free at:
http://researcharchives.com/t/s?5e74
Tempe, Ariz.-based Asia8, Inc. maintains the exclusive rights to
distribute a wide array of products within the Gulf Region.
Products include Unic Hydraulic Cranes that are manufactured in
Japan, Atomix Pleasure Boats that are manufactured in China, and
"Wing Houses" that are manufactured in China.
GENERAL MOTORS: China Sales Jump 68% on Government Stimulus
-----------------------------------------------------------
Bloomberg News reports that General Motors Co. posted a 68% rise
in March sales in China as government stimulus measures encouraged
car-buying.
Bloomberg News says GM sales for the month rose to a record
230,048 units, outpacing Toyota Motor Corp., which said its China
sales increased 33 percent to 61,200.
According to Bloomberg News, GM's sales figures include sales of
129,489 vehicles at its minivan joint venture SAIC-GM-Wuling
Automotive Co., an increase of 43%. Sales at Shanghai General
Motors Co., another GM unit, increased 89% to 86,967.
The growth in China comes as a recovery in the U.S. boosted GM's
U.S. sales 21% on an unadjusted basis last month, the report says.
General Motors Company -- http://www.gm.com/-- is one of the
world's largest automakers, tracing its roots back to 1908. With
its global headquarters in Detroit, GM employs 209,000 people in
every major region of the world and does business in some 140
countries. GM and its strategic partners produce cars and trucks
in 34 countries, and sell and service these vehicles through these
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel,
Vauxhall and Wuling. GM's largest national market is the United
States, followed by China, Brazil, the United Kingdom, Canada,
Russia and Germany. GM's OnStar subsidiary is the industry leader
in vehicle safety, security and information services.
GM acquired its operations from General Motors Company, n/k/a
Motors Liquidation Company, on July 10, 2009, pursuant to a sale
under Section 363 of the Bankruptcy Code. Motors Liquidation or
Old GM is the subject of a pending Chapter 11 reorganization case
before the U.S. Bankruptcy Court for the Southern District of New
York.
At September 30, 2009, GM had US$107.45 billion in total assets
against US$135.60 billion in total liabilities.
About Motors Liquidation
General Motors Corporation and three of its affiliates filed for
Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case
No. 09-50026). General Motors changed its name to Motors
Liquidation Co. following the sale of its key assets to a company
60.8% owned by the U.S. Government.
The Honorable Robert E. Gerber presides over the Chapter 11 cases.
Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H.
Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors
in their restructuring efforts. Al Koch at AP Services, LLC, an
affiliate of AlixPartners, LLP, serves as the Chief Executive
Officer for Motors Liquidation Company. GM is also represented by
Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as
counsel. Cravath, Swaine, & Moore LLP is providing legal advice
to the GM Board of Directors. GM's financial advisors are Morgan
Stanley, Evercore Partners and the Blackstone Group LLP.
Bankruptcy Creditors' Service, Inc., publishes General Motors
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by General Motors Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
SHANGHAI PUDONG: Targets at Least 25% Profit Growth This Year
-------------------------------------------------------------
Bloomberg News reports that Shanghai Pudong Development Bank Co.
said it targets at least a 25% increase in profit this year. The
bank also targets loan growth this year of at least 22% and asset
growth of at least 18%, according to a filing to Shanghai?s stock
exchange obtained by Bloomberg News.
According to Bloomberg News, Shanghai Pudong Development Bank Co.,
part owned by Citigroup Inc., said profit rose 5.6% last year on
rising demand for loans and other financial services.
Bloomberg News says the bank's net income climbed to CNY13.2
billion ($1.93 billion), or CNY1.62 a share, from CNY12.5 billion,
or CNY1.58 a share, a year earlier.
Headquartered in Shanghai, China, Shanghai Pudong Development
Bank Co., Ltd. -- http://www.spdb.com.cn/-- is a commercial
bank involved in personal banking, corporate banking, and inter-
bank business. The bank also offers Internet banking and
telephone banking.
* * *
The bank continues to carry Moody's Investors Service's "Ba1"
long-term bank deposit rating and "D" bank financial strength
rating. It also carries Fitch Ratings' "D" individual rating.
================
H O N G K O N G
================
GEMSTAR ASIA: Commences Wind-Up Proceedings
-------------------------------------------
Members of Gemstar Asia Limited, on March 19, 2010, passed a
resolution to voluntarily wind-up the company's operations.
The company's liquidator is:
Po Wan Ivy Lam
Flat H, 38/F, Block 11
Royal Ascot, Fo Tan
New Territories
Hong Kong
GRANDARY DEVELOPMENT: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------------
At an extraordinary general meeting held on April 1, 2010,
creditors of Grandary Development Limited resolved to voluntarily
wind up the company's operations.
The company's liquidator is:
Tang Tat Sin
21/F., Fee Tat Commercial Centre
No. 613 Nathan Road
Kowloon, Hong Kong
GRAND MARINE: Members' and Creditors Meetings Set for April 7
-------------------------------------------------------------
Members and creditors of Grand Marine Holdings Limited will hold
their meetings on April 7, 2010, at 2:30 p.m., and 2:45 p.m.,
respectively at the 35th Floor, One Pacific Place, 88 Queensway,
in Hong Kong.
At the meeting, Dermot Agnew, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
HK COPYRIGHT: Placed Under Voluntary Wind-Up Proceedings
--------------------------------------------------------
At an extraordinary general meeting held on March 22, 2010,
creditors of Hong Kong Copyright Association Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Alex So Yin Wai
Unit A, 2/F., Trust Tower
68 Johnston Road
Wanchai, Hong Kong
KENDRO LABORATORY: Members' Final Meeting Set for May 5
-------------------------------------------------------
Members of Kendro Laboratory Products (H.K.) Limited will hold
their final meeting on May 5, 2010, at 10:00 a.m., at the 35th
Floor, One Pacific Place, 88 Queensway, in Hong Kong.
At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey the
company's liquidators will give a report on the company's wind-up
proceedings and property disposal.
KENT INTERNATIONAL: Placed Under Voluntary Wind-Up Proceedings
--------------------------------------------------------------
At an extraordinary general meeting held on March 30, 2010,
creditors of Kent International Enterprise Limited resolved to
voluntarily wind up the company's operations.
The company's liquidators are:
Andrew C.C. Ma
Felix K.L. Lee
19th Floor, Seaview Commercial Building
21-24 Connaught Road West
Hong Kong
KLA-TENCOR MIE: Chen and Wong Step Down as Liquidators
------------------------------------------------------
Chen Yung Ngai Kenneth and Wong Tak Man Stephen stepped down as
liquidators of Kla-Tencor Mie Limited on March 26, 2010.
MAIDENS INTERNATIONAL: Members' Final Meeting Set for May 3
-----------------------------------------------------------
Members of Maidens International Limited will hold their final
meeting on May 3, 2010, at 2:30 p.m., at the Rooms 2102-3 China
Insurance Group Building, 141 Des Voeux Road Central, in Hong
Kong.
At the meeting, Dantes Mak Kay Lung, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
MANNING INTERNATIONAL: Creditors' Proofs of Debt Due May 3
----------------------------------------------------------
Creditors of Manning International Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by May 3, 2010, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on March 24, 2010.
The company's liquidator is:
Yip Ka Ki
16th Floor, Alliance Building
No. 130-136 Connaught Road
Central, Sheung Wan
Hong Kong
MEDIA PARTNERS: Philip Brendan Gilligan Appointed as Liquidator
---------------------------------------------------------------
Philip Brendan Gilligan on March 24, 2010, was appointed as
liquidator of Media Partners International Group Limited.
The liquidator may be reached at:
Philip Brendan Gilligan
7th Floor, Alexandra House
18 Chater Road
Central, Hong Kong
MOTOROLA AIRCOMMUNICATIONS: Creditors' Proofs of Debt Due May 3
---------------------------------------------------------------
Motorola Aircommunications Limited, which is in members' voluntary
liquidation, requires its creditors to file their proofs of debt
by May 3, 2010, to be included in the company's dividend
distribution.
The company's liquidators are:
Isabelle Angeline Young
John Chi Wai Wong
21/F., Edinburgh Tower
The Landmark
15 Queen's Road
Central, Hong Kong
NEVER NO: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------
At an extraordinary general meeting held on March 30, 2010,
creditors of Never No Limited resolved to voluntarily wind up the
company's operations.
The company's liquidators are:
Andrew C.C. Ma
Felix K.L. Lee
19th Floor, Seaview Commercial Building
21-24 Connaught Road West
Hong Kong
OFFICEMAX HK: Philip Brendan Gilligan Appointed as Liquidator
-------------------------------------------------------------
Philip Brendan Gilligan on March 25, 2010, was appointed as
liquidator of Officemax Hong Kong Limited.
The liquidator may be reached at:
Philip Brendan Gilligan
7th Floor, Alexandra House
18 Chater Road
Central, Hong Kong
PAK SHING: Placed Under Voluntary Wind-Up Proceedings
-----------------------------------------------------
At an extraordinary general meeting held on March 26, 2010,
creditors of Pak Shing Commodities Company Limited resolved to
voluntarily wind up the company's operations.
The company's liquidator is:
Lam Chung Wah David
Suite 1807, The Gateway
Tower II, 25 Canton Road
Tsimshatsui, Kowloon
Hong Kong
PETER BLACK: Commences Wind-Up Proceedings
------------------------------------------
Members of Peter Black Freight (Asia) Limited, on March 22, 2010,
passed a resolution to voluntarily wind-up the company's
operations.
The company's liquidators are:
Rainier Hok Chung Lam
Anthony David Kenneth Boswell
22/F, Prince's Building
Central, Hong Kong
PRO STEP: Creditors' Proofs of Debt Due May 7
---------------------------------------------
Creditors of Pro Step Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by May 7,
2010, to be included in the company's dividend distribution.
The company's liquidator is:
Ha Man Kit Marcus
Room 602, 41 Lockhart Road
Wanchai, Hong Kong
RECOTON (HK): Creditors' and Members Meetings Set for April 12
--------------------------------------------------------------
Creditors and members of Recoton (Hong Kong) Limited will hold
their annual meetings on April 12, 2010, at 10:00 a.m., at the
office of Ferrier Hodgson Limited, 14th Floor, The Hong Kong Club
Building, 3A Chater Road, Central, in Hong Kong.
At the meeting, Roderick John Sutton, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
RIGHT TOP: Creditors' Meeting Set for April 8
---------------------------------------------
Creditors of Right Top Industrial Limited will hold their meeting
on April 8, 2010, at 11:30 a.m., for the purposes provided for in
Sections 241, 242, 243, 244, 245 and 255A of the Companies
Ordinance.
The meeting will be held at the Room 1912, West Tower, Shun Tak
Centre, 168 Connaught Road Central, in Hong Kong.
SINDERLAND LIMITED: Placed Under Voluntary Wind-Up Proceedings
--------------------------------------------------------------
At an extraordinary general meeting held on March 30, 2010,
creditors of Sinderland Limited resolved to voluntarily wind up
the company's operations.
The company's liquidators are:
Andrew C.C. Ma
Felix K.L. Lee
19th Floor, Seaview Commercial Building
21-24 Connaught Road West
Hong Kong
SOLAR GAIN: Placed Under Voluntary Wind-Up Proceedings
------------------------------------------------------
At an extraordinary general meeting held on March 30, 2010,
creditors of Solar Gain Holdings Limited resolved to voluntarily
wind up the company's operations.
The company's liquidators are:
Andrew C.C. Ma
Felix K.L. Lee
19th Floor, Seaview Commercial Building
21-24 Connaught Road West
Hong Kong
=========
I N D I A
=========
ANSAL HOUSING: Fitch Assigns National Long-Term Rating at 'BB-'
---------------------------------------------------------------
Fitch Ratings has assigned India's Ansal Housing and Construction
Limited a National Long-term Rating of 'BB-(ind)'. The Outlook is
Stable. Fitch has also assigned these ratings to the company's
bank lines:
-- Secured overdraft facilities of INR750 million: 'BB-(ind)';
and
-- Term loans of INR631.3 million: 'BB-(ind)'.
The ratings factor the company's strong brand name and proven
track record in the Northern Indian real estate market, and
reflect the diversified nature of its residential projects; AHCL
focuses on Tier II and Tier III cities in the states of Haryana,
Uttar Pradesh, Rajasthan and Punjab. Fitch notes that the degree
of speculative demand for residential properties in these regions
is relatively lower compared to metro cities, with the majority of
the purchases by end-users.
However, Fitch notes the higher proportion of end-use demand
reduces the amount of sales during the early stages of the
project, which in turn increases working capital requirements.
The company has continued to focus on the township segment, with a
significant proportion of plotted development, which reduces its
execution risk. The ratings also reflect the relatively lower
land payment liability over FY10 and FY11.
The ratings are constrained by the significant decline in AHCL's
operating performance in 2008-2009, due to the slowdown in India's
real estate sector. AHCL's sales have started to improve as
reflected in its Q3FY10 and Q2FY10 results -- it sold 775 and 770
units respectively versus 251 units sold in Q1FY10.
Fitch will monitor for the company's sustainability of operating
performance over a longer period. The operating environment in
the domestic real estate sector, though slightly improved, still
remains subdued, making asset monetization and project sales slow
to achieve.
The ratings are further constrained by the recent financial
restructuring of bank debt. Fitch notes that the restructuring
has not resulted in significant impairment of contractual terms
for the creditors, with the revised terms envisaging an only
extension in maturity. The ratings are also constrained by an
aggressive ongoing expansion plan, with ongoing projects of nearly
27 million sqft to be executed over FY10-FY13. Fitch also notes
that the total unsold area on the ongoing projects is high, at 76%
of total value of the projects.
Negative ratings triggers include any major time or cost overruns
in ongoing projects, or a shortfall in cash flows from asset
monetisation or project sales, which would constrain the extent of
de-leveraging and exert renewed pressure on liquidity. Positive
ratings actions would be triggered by a significant deliberating
of the balance sheet through monetisation of its assets or through
raising of additional equity, and/or an improvement in the
operating environment.
The company has three business segments -- real estate, a car
dealership through a JV with Itochu, Japan and a restaurant
business. In FY09, the company's consolidated revenues dropped by
12% to INR3.3 billion, primarily on the back of a 13% fall in the
real estate business. EBITDA margins fell to 17% in FY09 (FY08:
25.9%), while PAT margins declined to 5.3% in FY09 (FY08: 14.8%).
The company's leverage levels deteriorated with a net debt/EBITDA
of 5.8x in FY09 (FY08: 3.0x).
DANIA ORO: Delays in Loan Repayment Cues CRISIL 'B-' Ratings
------------------------------------------------------------
CRISIL has assigned its 'B-/Stable/P4' ratings to the bank
facilities of Dania Oro Jewellery Private Limited, part of the
Dynamix group.
Facilities Ratings
---------- -------
INR100.1 Million Long-Term Loan B-/Stable (Assigned)
INR80.8 Million Packing Credit* P4 (Assigned)
INR242.2 Million Post Shipment Credit* P4 (Assigned)
* Fully Interchangeable
The ratings are constrained by delays in repayment of term loan
obligations by a group company, Rolly Jewellery Pvt Ltd. The
ratings also factor in the Dynamix group's weak financial risk
profile, marked by high gearing and poor debt protection metrics,
its working-capital-intensive operations, and exposure to risks
related to geographic concentration in its revenue profile. These
weaknesses are partially offset by the Dynamix group's moderate
market position in the jewellery industry, and the benefits that
it derives from its sound manufacturing facilities.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Dania Oro, Dynamix Chains Manufacturing
Private Limited, SAY India Jewellers Pvt Ltd, Lily Jewellery Pvt
Ltd, Yash Jewellery Pvt Ltd, Rolly Jewellery Pvt Ltd, Jewel
America Inc, and Barjon Inc. This is because these entities,
collectively referred to as the Dynamix group, are under a common
promoter group, in the same line of business, and have operational
synergies and fungible cash flows among them.
Outlook: Stable
CRISIL believes that the Dynamix group will continue to benefit
from its sound manufacturing facilities and reputed customer base.
The outlook may be revised to 'Positive' if there is significant
improvement in the group's financial risk profile because of
healthy cash accruals and profitability, and if the group
companies demonstrate a track record of timely repayment of debt
obligations. Conversely, the outlook may be revised to 'Negative'
if the group's financial risk profile deteriorates because of
continued losses in Jewel America, or if the group undertakes any
large, debt-funded capital expenditure program.
About the Group
The Dynamix group of companies, engaged in the manufacture of
jewellery, is promoted by Mr. Pramod Goenka. The group
manufactures gold, silver, and diamond-studded jewellery, which is
mainly exported to countries such as the US and the UK.
Set up in October 2007, Dynamix Chains manufactures specialized
chains and pendants, which are exported to the US. SAY India,
Lily, Dania Oro and Yash (set up in May 1995, February 2004,
February 2006, and November 2006, respectively), export diamond-
studded gold jewellery, while Rolly (established in January 2005)
exports light-weight electro-form jewellery. Jewel America, a
leading jewellery wholesaler in the US, was acquired by the group
in February 2009.
Dania Oro reported a profit after tax (PAT) of INR57 million on
net sales of INR691 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR28 million on net
sales of INR443 million for 2007-08.
DHRUV ACADEMY: Fitch Assigns 'B+' National Long-Term Rating
-----------------------------------------------------------
Fitch Ratings has assigned India-based Dhruv Academy Limited a
National Long-term rating of 'B+(ind)'. The Outlook is Stable.
Fitch has also assigned a National rating of 'B+(ind)' to Dhruv's
INR129 million long term bank loans.
The ratings reflect the growing size of the academy under the
aegis of Malpani Foundation, a religious and educational
charitable trust managed by the Malpani family of Sangamner in
Maharashtra. However, the ratings are constrained by the ongoing
construction of the second phase of the academy and the dependence
on Malpani Group's flagship entity, Sargam Retails ('A-
(ind)'/Stable), to service its debt. Sargam, the flagship entity
of the Malpani Group, has committed to donate INR50 for every 50
kg bag of zarda it sold to the Malpani Foundation, until Dhruv
becomes self-sufficient. In FY09, Sargam sold 12 million bags of
zarda, which translates into a donation of INR62.2 million. With
a strong liquidity and credit profile, Sargam's expected support
benefits Dhruv's ratings substantially, as noted by Fitch.
The ratings are also constrained by the short two year track
record of operations and the limited number of admissions to date,
which is reflected in its very small scale of operations and net
losses during FY08 and FY09. The ratings also take into account
the academy's stretched financial profile, in the form of high
levels of overall debt, which has resulted in significantly high
gearing levels, and the agency expects the trend to continue till
FY11.
The ratings are further constrained by the execution risks
associated with the ongoing expansion plans to increase capacity
by 20%-25%. The academy has tied up its bank funding and raised
additional contributions from the Malpani Foundation; however,
demand for luxury schooling in a small region like Sangamner
remains a concern and full utilization of capacity once completed
may become a challenge at the current price point. Any delays in
getting the committed support in the form of charity from Sargam
may deteriorate the liquidity position further for Dhruv and may
move the ratings lower.
Dhruva Academy is a day boarding and residential school started in
2008, as an educational initiative of the Malpani Foundation. The
academy offers day boarding and residential facilities to students
up to Class VIII but plans to offer classes of up to Class XII in
the next few years.
DIAGEMS EXPORTS: CRISIL Rates INR127MM Packing Credit at 'P4'
-------------------------------------------------------------
CRISIL has assigned its rating of 'P4' to the packing credit
facility of Diagems Exports.
Facilities Ratings
---------- -------
INR127.0 Million Packing Credit P4 (Assigned)
The rating reflects Diagems's weak financial risk profile marked
by high gearing, small net worth, and high bank line utilization.
The ratings also factor in the firm's small scale of operations in
the jewellery exports business, and geographic concentration in
revenue profile. These weaknesses are partially offset by
Diagems's high operating margin, backed by presence in the high-
end, premium, diamond-studded jewellery business.
Set up in 1995 by Mr. G K Shenoy, Diagem is a 100 per cent export-
oriented unit. The company has operations across India; in the
Middle East, the company is present through its subsidiary Shenoy
Jewellers LLC.
Diagem reported a profit after tax (PAT) of INR1.10 million on net
sales of INR298.4 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR0.92 million on net
sales of INR152.4 million for 2007-08.
DURGAPUR MEDICAL: CRISIL Places 'B+' Ratings on Various Bank Debts
------------------------------------------------------------------
CRISIL has assigned its 'B+/Negative/P4' ratings to Durgapur
Medical Centre Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR35 Million Cash Credit B+/Negative (Assigned)
INR443.50 Million Long Term Loan B+/Negative (Assigned)
INR18.30 Million Proposed Long-Term B+/Negative (Assigned)
Bank Loan Facility
INR3.20 Million Letter of Credit & P4 (Assigned)
Bank Guarantee
The ratings reflect DMCPL's restricted financial risk profile,
marked by limited accruals in the nascent phase of its operations
and high gearing, and the company's exposure to risks relating to
geographical concentration in its revenue profile, to intense
competition in the healthcare industry, and to the-limited
spending capacity of patients at its hospital. These rating
weaknesses are partially offset by the benefits that DMCPL derives
from its strategic location.
Outlook: Negative
CRISIL believes that DMCPL's credit risk profile will remain under
pressure because of large debt repayment obligations maturing in
2010-11 (refers to financial year, April 1 to March 31). The
ratings may be downgraded if DMCPL's liquidity is strained by
decrease in accruals or larger-than-expected increase in capital
expenditure. Conversely, the outlook may be revised to 'Stable'
in case the company's financial risk profile strengthens,
supported by improved profitability and reduced debt levels, or in
case of higher equity infusion into the company.
About Durgapur Medical
Set up in 1987, DMCPL was acquired by the current management in
2006. The company owned three acres of land in Durgapur (West
Bengal), on which it began constructing a hospital in 2006. The
hospital commenced operations in April 2008. The company has five
promoters: two doctors and three businessmen, who have equal
holding of the company. Dr. Satyajit Bose, one of the promoters,
was the senior consultant cardiac surgeon at Ruby Hospital,
Kolkata, Suraksha Hospital, Kolkata, and Apollo Gleneagles
Hospital, Kolkata. Dr. Arungashu Ganguly, another promoter, was a
consultant of interventional cardiology at Suraksha Hospital,
Kolkata and Batra Heart Research Centre, New Delhi, and the
resident house physician in Medical College, Calcutta. The other
three promoters are businessmen based in Durgapur.
DMCPL's hospital, The Mission Hospital, in Durgapur is a 250-bed
hospital. Recently, the company's management entered into an
agreement with Modern Medical Centre (MMI), Raipur (Chhattisgarh).
MMI is a 250-bed hospital in Raipur, which was set up under a
society in 1995. Under the agreement, DMCPL's management will
operate and manage 50 beds at MMI.
DMCPL reported a net loss of INR163 million on net sales of INR246
million for 2008-09.
ECP INDUSTRIES: Weak Liquidity Prompts CRISIL 'C' Ratings
---------------------------------------------------------
CRISIL has assigned its 'C/P4' ratings to the bank facilities of
ECP Industries Ltd.
Facilities Ratings
---------- -------
INR56 Million Cash Credit C (Assigned)
INR15 Million Bank Guarantee P4 (Assigned)
INR12 Million Letter of Credit P4 (Assigned)
The ratings reflect ECP's delay in servicing its term loan in the
past because of weak liquidity. The ratings also reflect ECP's
limited scale of operations, and weak financial risk profile, weak
debt protection measures. These rating weaknesses are partially
offset by the benefits that ECP derives from its promoters'
experience.
Incorporated in 1983, ECP (formerly, Eastern Cylinders Pvt Ltd)
manufactures domestic liquefied petroleum gas (LPG) cylinders,
with capacity to produce 450,000 cylinders per annum. The company
acquired its current name in 1998. ECP received ISO 9002
certification in 1986. Its product profile includes LPG
cylinders, LPG pressure regulators, and industrial valves. The
company manufactures LPG cylinders of various capacities, ranging
from small domestic cylinders to large commercial containers,
conforming to various specifications such as BS 5045, DOT 4BA, ISO
4706, and IS 3196.
ECP reported a profit after tax (PAT) of INR0.57 million on net
sales of INR182 million for 2008-09 (refers to financial year,
April 1 to March 31) against a PAT of INR0.61 million on net sales
of INR182 million for 2007-08.
EROS MOTORS: Small Net Worth Prompts CRISIL 'BB+' Ratings
---------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to Eros Motors
Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR64.70 Million Cash Credit Limit BB+/Stable (Assigned)
INR14.80 Million Term Loan BB+/Stable (Assigned)
INR20.50 Million Bank Guarantee P4+ (Assigned)
The ratings reflect EMPL's weak financial risk profile, marked by
a small net worth and a high total outside liabilities to tangible
net worth (TOL/TNW) ratio and exposure to risks related to
geographic concentration in revenue profile. These rating
weaknesses are partially offset by the benefits that the company
derives from its promoters' experience in automobile dealership
business, and its diversified product portfolio.
Outlook: Stable
CRISIL believes that EMPL will maintain its market position in
Nagpur (Maharashtra) over the medium term, backed by the
promoters' experience in automobile dealership business and the
company's diversified product portfolio. The outlook may be
revised to 'Positive' if EMPL improves its capital structure (by
infusing more equity capital in the company) and/or operating
margin. Conversely, the outlook may be revised to 'Negative' in
case EMPL's cash accruals decline significantly because of
increased competition in the automobile market in Nagpur, or in
case the company's capital structure weakens further, because of
debt-funded capital expenditure.
About Eros Motors
Incorporated in 1989 by Mr. N P Pande, EMPL is into automobile
dealership of commercial vehicles, passenger cars and tractors.
EMPL is an authorized dealer for Hyundai Motors India Ltd (rated
'P1+' by CRISIL) for passenger cars, Swaraj Mazda for commercial
vehicles, and Piaggio Vehicles Pvt Ltd (rated 'A+/Stable/P1+' by
CRISIL) for three- and four-wheeler light commercial vehicles
(LCVs). In December 2009, EMPL also obtained authorised
dealership from Mahindra & Mahindra Ltd (rated 'AA/Stable/P1+', by
CRISIL) for distribution of tractors. The company expects to
start sale of Mahindra & Mahindra tractors from financial year
2010-11.
EMPL reported a profit after tax (PAT) of INR1.7 million on net
sales of INR505 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR0.8 million on net sales
of INR253 million for 2007-08.
ETHNIC AGROS: CRISIL Rates INR120MM Cash Credit at 'B+'
-------------------------------------------------------
CRISIL has assigned its rating of 'B+/Stable' to the cash credit
facility of Ethnic Agros Ltd.
Facilities Ratings
---------- -------
INR120.0 Million Cash Credit B+/Stable (Assigned)
The rating reflects EAL's weak financial risk profile marked by
high gearing, and exposure to risks relating to unfavorable
changes in regulations. These weaknesses are mitigated by the
benefits that EAL derives from professional senior management and
promoters with extensive experience in tobacco industry, and the
healthy business prospects for India's tobacco exporters.
For arriving at the ratings, CRISIL has combined the financial
risk profiles of EAL and Ethnic Tobacco (India) Ltd. This is
because EAL and ETIL (together referred to as the Ethnic group)
have a largely common management, and substantial operational and
financial linkages.
Outlook: Stable
CRISIL believes that the Ethnic group will maintain steady growth
in revenues over the medium term, supported by the increasing
demand for Indian tobacco in the global markets. The outlook may
be revised to 'Positive' if the Ethnic group's financial risk
profile improves, owing to substantial equity infusions leading to
better than expected financial risk profile. Conversely, the
outlook may be revised to 'Negative' if the group takes on fresh
large debt to fund capital expenditure, resulting in deterioration
in its capital structure, or if the group's turnover or
profitability reduces considerably, weakening its financial risk
profile.
About the Group
EAL, based in Guntur (Andhra Pradesh), was incorporated in
September 2006 by Mr. T Venkata Rao and his brother, Mr. T Murali
Mohan as private limited company and later converted to public
limited company. EAL is into ginning of cotton and trading in
cotton lint and unmanufactured tobacco.
ETIL, incorporated in January 2006, trades in unmanufactured
tobacco.
EAL reported a profit after tax (PAT) of INR2.7 million on net
sales of INR174.6 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR0.9 million on net sales
of INR141.8 million for 2007-08.
ETHNIC TOBACCO: CRISIL Assigns 'B+' Rating on INR370MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its rating of 'B+/Stable' to the bank
facilities of Ethnic Tobacco India Ltd.
Facilities Ratings
---------- -------
INR370.0 Million Cash Credit* B+/Stable (Assigned)
INR70.0 Million Standby Line B+/Stable (Assigned)
of Credit
*Includes a sub-limit of Export Packing Credit to the extent
of INR320.0 Million and sub-limit of Bill Discounting to the
extent of INR220.0 Million
The rating reflects ETIL's weak financial risk profile marked by
high gearing, and exposure to risks relating to unfavorable
changes in regulations. These weaknesses are mitigated by the
benefits that ETIL derives from professional senior management and
promoters with extensive experience in tobacco industry, and the
healthy business prospects for India's tobacco exporters.
For arriving at the rating, CRISIL has combined the financial risk
profiles of ETIL and Ethnic Agros Ltd (EAL). This is because ETIL
and EAL (together referred to as the Ethnic group) have a largely
common management, and substantial operational and financial
linkages.
Outlook: Stable
CRISIL believes that the Ethnic group will maintain steady growth
in revenues over the medium term, supported by the increasing
demand for Indian tobacco in the global markets. The outlook may
be revised to 'Positive' if the Ethnic group's financial risk
profile improves, owing to substantial equity infusions leading to
better than expected financial risk profile. Conversely, the
outlook may be revised to 'Negative' if the group takes on fresh
large debt to fund capital expenditure, resulting in deterioration
in its capital structure, or if the group's turnover or
profitability reduces considerably, weakening its financial risk
profile.
About the Group
ETIL, based in Guntur (Andhra Pradesh), was incorporated in
January 2006 by Mr. T Venkata Rao and his brother, Mr. T Murali
Mohan. ETIL trades in unmanufactured tobacco.
EAL, incorporated in September 2006 as private limited company and
later converted to public limited company, is into ginning of
cotton and trading in cotton lint and un-manufactured tobacco.
ETIL reported a profit after tax (PAT) of INR7.2 million on net
sales of INR511.8 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR6.2 million on net sales
of INR308.9 million for 2007-08.
FORD MOTOR: India Sales Up 203% to 9,478 Units in March 2010
------------------------------------------------------------
Ford India sales for the month of March more than tripled year-
over-year, rising 203%, and nearly tripled from the previous month
The all-new Ford Figo has received more than 10,000 orders less
than one month after it went on sale, a new Ford India record. In
response to the strong demand, Ford India will launch a second
production shift at its plant in Chennai.
The Figo's popularity helped Ford India's overall March sales more
than triple from the same month a year ago, rising an impressive
203% to 9,478 units. The exceptional March performance, which
also included strong sales of Ford Ikon, Ford Fiesta, and Ford
Endeavour, were nearly triple Ford India's February sales,
increasing 194%.
"We are delighted at the initial response to Figo, and are
incredibly proud to have struck such a positive chord with Indian
consumers," said Michael Boneham, president and managing director
of Ford India. "The launch of Figo is the start of a transformed
Ford in India, and a true reflection of our commitment to
delivering world-class products that allow Indian customers to
feel the difference.''
Part of Ford's US$500-million investment in India, Figo was
designed and engineered with Indian customers in mind ? including
months of exhaustive customer clinic research and thorough testing
in both simulated and actual road evaluations.
Aimed squarely at more than 70% of the country's new vehicle
market, Figo has significantly bolstered Ford's competitive
position. This has been one of the best launch response and
volumes achieved in the first month of sale by manufacturers in
India's automotive history.
The Figo is one of the more than 20 new vehicles Ford is
introducing globally in 2010. The new cars, trucks and SUVs,
which offer class-leading fuel economy, quality, safety and
technology, represent substantially more new or freshened product
by volume than was introduced in 2009.
During the course of this journey, more than 900,000 people
visited the Ford Figo homepage www.fordfigo.in to know more about
the car and spent and average of over 8 minutes on the website.
In addition, thousands of people joined Ford Figo communities
across social networking sites like Facebook, Twitter.
"As we remain committed to redefining the Ford brand in India, we
expect this momentum to continue," said Boneham. "Factors such as
the initial price of the car, fuel efficiency and cost of
maintenance are critical in determining affordability for a new
car buyer. Indian customers are confirming that Figo solidly
delivers on all of these."
With longer intervals of key maintenance components due to better
durability, competitive cost of the parts and the short time
required for vehicle servicing, Figo is placed among the leaders
in scheduled service over a 5 year/100,000 kilometre period.
As part of ongoing efforts to demonstrate its competitive cost of
ownership, Ford India recently announced the opening of 28
dealerships in India, bringing the total number of Ford outlets to
164 facilities in 97 cities. The company plans to expand to 200
facilities by the end of the year.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
across six continents. With about 200,000 employees and about 90
plants worldwide, the company's automotive brands include Ford,
Lincoln, Mercury and Volvo. The Company provides financial
services through Ford Motor Credit Company.
At December 31, 2009, the Company had US$194.850 billion in total
assets against US$201.365 billion in total liabilities. Total
deficit attributable to Ford Motor at December 31, 2009, was
US$7.820 billion.
On March 4, 2009, Ford deferred future interest payments on its
6.50% Junior Subordinated Convertible Debentures due January 15,
2032, beginning with the April 15, 2009 quarterly interest
payment.
In March 2010, Moody's Investors Service raised Ford's Corporate
Family Rating (CFR) and Probability of Default Rating (PDR) to B2
from B3, secured credit facility to Ba2 from Ba3, senior unsecured
debt to B3 from Caa1, trust preferred to Caa1 from Caa2, and
Speculative Grade Liquidity rating to SGL-2 from SGL-3. Also
raised is Ford Credit's senior debt rating to B1 from B2.
On Nov. 3, 2009, S&P raised the corporate credit ratings on Ford
Motor Co. and Ford Motor Credit Co. LLC to 'B-' from 'CCC+'. Ford
Motor Co. carries a long-term issuer default rating of 'CCC', with
a positive outlook, from Fitch Ratings.
INSTA EXHIBITIONS: CRISIL Rates INR95 Mil. Cash Credit at 'BB+'
---------------------------------------------------------------
CRISIL has assigned its 'BB+/Positive/P4+' ratings to the bank
facilities of Insta Exhibitions Pvt Ltd (IEPL; part of the Insta
group).
Facilities Ratings
---------- -------
INR95.0 Million Cash Credit BB+/Positive(Assigned)
INR80.0 Million Foreign Currency BB+/Positive(Assigned)
Term Loan
INR5.0 Million Letter of Credit P4+(Assigned)
and Bank Guarantee
The ratings reflect the Insta group's average financial risk
profile, constrained by small net worth and high gearing, and
exposure to risks related to fragmentation in the exhibition
products and solutions industry. These rating weaknesses are
partially offset by the benefits that the Insta group derives from
its wide product profile, strong marketing and distribution
network, and established client relationships.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of IEPL, EDS Middle East LLC (EDSME;
IEPL's joint venture with Dubai-based businessman Mr. Hamad
Hussain Ali Al Salman; consolidated to the proportion of holding),
and IEPL's 100% subsidiaries Expo Display Holding AG, Switzerland
(EDH), and Exponents Inc, USA (EI). These entities have been
collectively referred to as the Insta group, and are in similar
lines of business.
Outlook: Positive
CRISIL expects further improvement in the Insta group's business
risk profile over the medium term on the back of diversified
product portfolio and improved customer profile. The ratings may
be upgraded if the Insta group's operating revenues and net cash
accruals increase after the restructuring of the recently acquired
overseas entities, without adversely affecting its debt protection
metrics. Conversely, the outlook may be revised to 'Stable' if
the benefits arising from the ongoing restructuring are below
expectation, or if the group undertakes a larger-than-expected
debt-funded capital expenditure programme, thereby adversely
affecting its financial risk profile.
About the Group
Incorporated in 2003 by Mr. Rajnikant Kedia, IEPL provides
exhibition solutions, which includes manufacturing products, such
as portable-display systems, modular systems, custom-modular
systems, custom-built systems, and other exhibition-related
services. The Insta group is present across the value chain of
the exhibition solutions space, including product manufacturing,
designing, installing, and maintenance.
The group acquired EDH in 2007 and EI in 2009. The EDSME venture
was entered into in 2008. The Insta group is planning to shift
the manufacturing activities of EDH and EI to India, while
maintaining marketing offices under EDH and EI.
The group is present in India, the US, Europe, and the UAE, with
around 500 employees in 23 showrooms across 11 countries. IEPL has
two regional offices, one each in Gurgaon (Haryana) and Bengaluru
(Karnataka), and four branches, one each in Ahmedabad (Gujarat),
Hyderabad (Andhra Pradesh), Chennai (Tamil Nadu), and Pune
(Maharashtra). IEPL's manufacturing facilities are located in
Haridwar (Uttarakhand) and in Vasai (Maharashtra).
IEPL reported a standalone profit after tax (PAT) of INR35.4
million on net sales of INR440.4 million for 2008-09 (refers to
financial year, April 1 to March 31), against a PAT of INR34.6
million on net sales of INR370.3 million for 2007-08.
KARUR VYSYA: Fitch Affirms Individual Rating at 'D'
---------------------------------------------------
Fitch Ratings has affirmed Karur Vysya Bank Limited's National
Long-term rating at 'A+(ind)', with a Stable Outlook.
The ratings reflect KVB's above average financial performance,
adequate capitalization and stable funding mix while also
factoring in the high concentration of its portfolio in sectors
like textiles and small scale industry. They also reflect its
regionally concentrated franchise and smaller size compared with
other larger new private banks and public sector banks.
KVB has managed to maintain the retail-centric nature of its
funding (retail deposits accounted for 71% of liabilities as at
end December 2009), lending stability to its funding profile.
However, the bank's above systemic average loan growth in 2009 was
partly funded by short-term inter-bank and collateralized
borrowings, leading to gaps in its asset liability maturity
profile. These are mitigated by the healthy rollover in the
bank's retail deposits and excess statutory liquidity ratio of up
to 4% of net liabilities.
The bank had a tier 1 ratio of 13.91% as at end-2009, all of which
was core capital. It also raised INR1,500 million in lower tier 2
capital in September 2009, and its total capital adequacy ratio
stood at 15.66%. The bank's equity/assets ratio stood at 7.83%.
KVB's profitability remains above system average on account of the
pricing premium on its portfolio which is skewed towards small and
medium-sized corporates and the largely un-rated SSI sector.
While credit costs have been contained during 9M10 (gross NPL:
end-December 2009 at 1.69%, FY09 at 1.95%) due to restructuring
(restructured loans as at end-June 2009: 5.4%), Fitch expects
KVB's credit costs to rise in FY10 on account of greater slippages
in the restructured portfolio, which, along with rising interest
costs could shrink the bank's profit margins.
KVB is a mid-sized, old private sector bank operating mainly in
southern India. It has a network of around 350 branches.
-- INR3 billion lower tier2 subordinate debt programme affirmed
at 'A+(ind)';
-- Individual Rating affirmed at 'D';
-- Support Rating affirmed at '5';
-- National Short-term rating affirmed at 'F1(ind)' and
withdrawn;
-- INR3 billion certificate of deposit programme affirmed at
'F1(ind)' and withdrawn as there is no instrument
outstanding.
KRISHNA CORPORATION: Low Net Worth Cues CRISIL 'BB+' Ratings
------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to Krishna
Corporation's bank facilities.
Facilities Ratings
---------- -------
INR30.0 Million Cash Credit Limit BB+/Stable (Assigned)
INR150.0 Million Bank Guarantee P4+ (Assigned)
The ratings reflect Krishna's exposure to risks related to
geographical concentration in its revenue profile, small scale of
operations, and low net worth. These rating weaknesses are
partially offset by Krishna's healthy order book, efficient
working capital management, and healthy financial risk profile,
marked by strong debt protection measures.
Outlook: Stable
CRISIL believes that Krishna will benefit from its healthy order
book over the medium term. The outlook may be revised to
'Positive' in case of larger-than-expected growth in Krishna's
revenues and profitability, and increased geographical diversity
in its revenues. Conversely, the outlook may be revised to
'Negative' in case of delays in the execution of its projects, or
if the firm undertakes a debt-funded capital expenditure
programme, exerting pressure on its debt protection measures.
Set up as a proprietorship concern in 1991 by Mr. Rajarshi M.
Parikh, Krishna undertakes construction work on a contractual
basis for the Government of Gujarat (GoG). It is a Class AA
contractor registered with GoG. The firm undertakes construction,
commissioning, operation, maintenance, and execution of water
treatment plant and regional water supply projects.
Krishna reported a profit after tax (PAT) of INR3.7 million on net
sales of INR72.5 million for 2008-09 (refers to financial year,
April 1 to March 31) against a PAT of INR9.6 million on net sales
of INR180.7 million for 2007-08.
KULGAON BADLAPUR: Fitch Assigns National Long-Term Rating at 'BB+'
------------------------------------------------------------------
Fitch Ratings has assigned a National Long-term rating of
'BB+(ind)' to the Kulgaon Badlapur Municipal Council. The Outlook
is Stable.
The rating reflects KBMC's modest operating and financial
performance and its moderate debt burden. Meanwhile, the rating
is constrained by the limited avenues for raising revenue, weak
economic base and poor urban infrastructure available to its
citizens. While bigger urban local bodies in Maharashtra have the
power to levy octroi (a local tax levied on the entry of goods
within a municipal boundary for consumption), providing a buoyant
source of revenue, octroi in the KBMC area was abolished in 1999.
The KBMC started receiving octroi compensation grants from the
Government of Maharashtra after abolition of octroi. Between
FY03-FY08, the octroi compensation grew at a compound annual
growth rate of 7%, while assigned revenues and grants (state
finance commission grants/stamp duty) together contributed to 53%
of the total revenue income in FY08. Property tax collection
growth, with a CAGR of 10% during FY03-FY08, remained sluggish and
the share of property taxes has decreased from 23% of the total
revenue income in FY06 to 19% in FY08.
KBMC's infrastructure is underdeveloped, including the road and
railway network. Furthermore, the local economy is not strong
enough to create employment within the boundaries of the council,
and most of the work-force employed within the council limits is
involved in agriculture, construction and/or in the service
industry. KBMC has the disadvantages of being a small, mainly
residential town, whose inhabitants travel to the Mumbai
Metropolitan Region for work.
Since KBMC is a part of the Mumbai Metropolitan Region (MMR), it
has to fund 50% of its capital investment plan from internal
surpluses and/or debt. This puts additional pressure on its
already weak financial profile; however, the debt to current
balance ratio remains relatively low for KBMC at 2.4x in FY08 and
0.12x in FY09.
The local body could benefit from its management's hands-on
approach in developing alternative revenue sources. In addition,
as it has been recently established in 1992 - the infrastructure
inadequacies can be satisfactorily addressed through planned
development, as the Jawaharlal Nehru National Urban Renewal
Mission (JNNURM) aims to make local bodies self-reliant.
A revision in the property tax scheme and the levying of user
charges for the provision of civic services, which can lead to a
sharp increase in revenues, could be positive for its rating. On
the other hand, downside risk could stem from the deterioration of
debt and debt coverage ratios owing to higher than anticipated
spending on the huge capex requirement (for JNNURM projects),
operations and maintenance. Capacity to execute the JNNURM
projects in a timely manner and within budget will also be a key
driver for KBMC's ratings.
The Stable Outlook reflects the strategic importance of the city
in the MMR; thus, necessitating the implementation of urban
infrastructure projects possibly through strong initiatives from
the state government.
KBMC is a small-sized town on the periphery of Mumbai with a
population of 97,948 (2001 census). It is governed by The
Maharashtra Municipal Council, Nagar Panchayat and Industrial
Township Act, 1965. The approved city development plan estimates
the cost of implementing key JNNURM projects to be INR3.2bn, which
primarily includes the construction of an underground sewage
system.
MEENAKSHI ENERGY: Fitch Assigns 'BB+' Rating on Bank Loans
----------------------------------------------------------
Fitch Ratings has assigned Meenakshi Energy Private Limited's
project bank loans of INR10.05 billion a National Long-term rating
of 'BB+(ind)'. The Outlook is Stable.
Fitch notes the rating is constrained by a lack of sponsor
experience in the power sector. The Principal sponsor, the
Meenakshi Group, is a relatively small player in the construction
business, and its greenfield thermal power project represents a
completely unrelated diversification. MEPL is currently carrying
out construction of a coal-based thermal power plant with a
capacity of 270MW in Andhra Pradesh, at an estimated cost of
INR13,400m, to be funded though a combination of debt and equity
in the ratio of 3:1.
However, two factors somewhat mitigate this risk, namely the
presence of PTC India Financial Services Ltd, a 100% subsidiary of
PTC India Ltd ('F1+(ind)'/Stable), as a 26% equity partner, as
well as a fixed-price, fixed-time Engineering, Procurement and
Construction contract with Thermax India Ltd., although Fitch
notes that this will be the largest turnkey contract undertaken by
the latter. The agency is concerned about the aggressive
implementation schedule and the low contingency provision of 1.5%.
This allows for very little flexibility, should there be slippages
in project implementation, especially as principal moratorium is
only six months.
The rating benefits from a large portion of the off-take risk
through a power tolling agreement with PTC that ensures recovery
of a fixed conversion charge under a 'Take or Pay' mechanism for
about 70% of the net generation. An added positive is that the
PTA that ensures supply of 'free coal' by PTC, to the extent of
70% of total requirement. Also, the project has the entire land
required for the project, which Fitch notes as an advantage given
the complexities involved in domestic land acquisition.
Additional rating concerns include the absence of firm
arrangements for sale of 30% of the power output and the
corresponding fuel supply arrangements; the lack of firm
arrangements implies the project will partially operate as a
merchant power plant. Fitch believes that given the demand-supply
dynamics for energy in India, off-take should not pose a major
risk, although currently high tariffs may not be sustainable in
the long-term. The latter will expose the project to price
volatility in the international coal market for the balance coal
requirement, as well as currency fluctuations.
The entire debt required for the project has been secured, and the
commercial banks have commenced term loan disbursals. With
regards to the equity infusion by the Meenakshi Group, a share
subscription and shareholders agreement among Meenakshi Energy
infrastructure holdings private ltd, Kakinada infrastructure
holdings private ltd, Meenakshi infrastructure private ltd, and
Meenakshi Power Ltd, governs the arrangements for using the
financial resources of these group / promoter entities to meet the
funding requirement. While Fitch notes that an initial amount of
INR1,675m has been brought into the project, the timely infusion
of the balance equity will be critical and Fitch will monitor this
aspect.
Negative rating triggers would include any delay or uncertainty in
the sponsor's ability to infuse balance equity in a timely manner.
MOODS HOSPITALITY: Fitch Assigns 'B' National Long-Term Rating
--------------------------------------------------------------
Fitch Ratings has assigned India-based Moods Hospitality Private
Limited a National Long-term rating of 'B(ind)'. The Outlook is
Stable. Simultaneously, the agency has assigned a National rating
of 'B(ind)' to MHPL's term loans totalling INR117 million.
The ratings reflect MHPL's stretched financial profile due to net
losses and high financial leverage. The company reported net
losses during FY07-FY09, along with operating EBITDA losses in
FY08 and FY09, which led to inadequate interest coverage metrics
(operating EBITDA/interest expense) over this period. However,
Fitch notes that MHPL was able to meet its interest obligations
through funds raised from its private equity investor (Matrix
Partners India Investment Holdings LLC). Adjusted financial
leverage, after capitalizing for rental expenses, also remains a
concern (total adjusted net debt/operating EBITDAR of 29x in FY08
and negative 6.3x in FY09). Fitch also notes that the company has
an aggressive expansion plan which is expected to continue to
weigh on its financial profile in medium-term. Ratings are
further constrained by the intense competition from bigger,
organized food industry players including McDonalds, Domino's,
Pizza Hut, KFC, etc.
The ratings draw comfort from MHPL's established position as the
owner of the largest Chinese fast food restaurant chain (Yo!
China) in India. Its predominant presence in the Chinese fast
food segment and the associated brand recognition, also
differentiates MHPL from its competitors. The non-cyclical nature
of and continued growth in the food services industry adds further
support to the ratings. Fitch also notes that MHPL enjoys
continued support from Matrix, which has already invested close to
INR340 million in the company, with an option to invest a further
INR17.5 million.
Negative rating factors include the inability to improve
profitability as anticipated, and any debt-led capex that could
lead to further deterioration in financial leverage. Conversely,
a substantial and sustained improvement in profitability could
have a positive impact on the ratings.
MHPL owns the Yo! China brand restaurant chain which has a total
of 55 outlets across the country (including 10 company owned
outlets, 15 company owned carts, 11 franchised outlets, 19
franchised carts) as at 29 March, 10. MHPL reported revenues of
INR245 million in FY09, with operating EBITDAR and net loss at
negative INR63.5 million and INR109.6 million, respectively.
Total debt at FYE09 was INR95.6 million, while accumulated losses
totalled INR131 million. For the 10 month period ending January
2010, the company had revenues and EBITDA of INR246 million and
INR4.6 million respectively. MHPL clarifies that the losses
during FY08-FY09 were primarily due to high personnel and rental
expenses (greater than 50% of revenues), and it is now taking
measures to curb the same.
NEELKAMAL STEELS: CRISIL Lifts Rating on INR42.5MM Loan to 'BB-'
----------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Neelkamal
Steels Pvt Ltd to 'BB-/Stable' from 'B+/Stable'.
Facilities Ratings
---------- -------
INR42.5 Million Term Loan BB-/Stable (Upgraded from
'B+/Stable')
INR37.5 Million Cash Credit BB-/Stable (Upgraded from
'B+/Stable')
The upgrade reflects improvement in Neelkamal's business risk
profile with the stabilization of expanded capacity in its thermo-
mechanically treated (TMT) bars manufacturing division. The
upgrade also factors in the operational benefits from the backward
integration into manufacturing of mild-steel ingots.
The ratings continue to reflect Neelkamal's marginal market share,
exposure to risks relating to cyclicality in the steel industry,
and limited integration of operations. These weaknesses are
partially offset by Neelkamal's moderate business risk profile.
Outlook: Stable
CRISIL believes that Neelkamal will improve its financial risk
profile on the back of increased scale of operations and moderate
cash accruals. The outlook may be revised to 'Positive' if
Neelkamal reports improved revenues and profitability, or
undertakes initiatives to enhance the integration of its
operations. Conversely, the outlook may be revised to 'Negative'
if the company undertakes a large, debt-funded capital expenditure
program, leading to deterioration in its capital structure.
About Neelkamal Steels
Neelkamal, incorporated in 2005, began commercial production of
TMT bars in August 2006. In 2009-10 (refers to financial year,
April 1 to March 31), the company has enhanced its TMT capacity to
60,000 tonnes per annum (tpa) and installed a 30,600-tpa capacity
to manufacture mild steel ingots. Its sells TMT bars under the
Neelkamal brand in Bihar and Uttar Pradesh.
For 2008-09, Neelkamal reported a profit after tax (PAT) of
INR11.4 million on net sales of INR429 million, as against a PAT
of INR9.5 million on net sales of INR287.6 million for 2006-07.
PREM MOTORS: CRISIL Reaffirms 'BB' Ratings on Various Bank Debts
----------------------------------------------------------------
CRISIL's rating on the bank facilities of Prem Motors Pvt Ltd
continues to reflect PMPL's weak financial risk profile marked by
a highly leveraged capital structure and limited negotiating power
with its principal, Maruti Suzuki India Ltd. These weaknesses are
partially offset by PMPL's established market position, reflected
in its high operating profitability.
Facilities Ratings
---------- -------
INR107.5 Million Cash Credit* BB/Stable (Reaffirmed)
INR234 Million Working Capital BB/Stable (Reaffirmed)
Demand Loan
INR225 Million Term Loan BB/Stable (Reaffirmed)
* Includes standby line of credit of INR37.5 million.
Outlook: Stable
CRISIL believes that PMPL will continue to benefit from its strong
market position over the medium term. The outlook may be revised
to 'Positive' if PMPL strengthens its capital structure, or in
case of significant improvement in its operating margin.
Conversely, the outlook may be revised to 'Negative' in case of
steep decline in PMPL's revenues or deterioration in its
profitability, or if the company undertakes a large, debt-funded
capital expenditure program, thereby adversely affecting its
capital structure.
About Prem Motors
Incorporated in 1990, PMPL has been an authorised dealer of MSIL
vehicles since in 2001. The company has six dealerships ? four
are 3S set-ups (sales, service, and spares) and two are exclusive
service stations. The dealerships are located in Jaipur, Gwalior,
Agra, and Guna. The dealership at Agra commenced operations in
April 2009. In November 2009, PMPL demerged its dealership of TVS
Motors Ltd (Gwalior) to another promoter-owned company, Garima
Motors Pvt Ltd. In 2008-09 (refers to financial year, April 1 to
March 31) revenue from MSIL dealership accounted for around 85 per
cent of PMPL's total revenues.
For 2008-09, PMPL reported a profit after tax (PAT) of INR6.4
million on net sales of INR2081 million, against a PAT of INR17.4
million on net revenues of INR1236 million for the previous year.
ROLLY JEWELLERY: CRISIL Places Junk Ratings on Various Bank Debts
-----------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to bank facilities of Rolly
Jewellery Pvt Ltd, part of the Dynamix group. The ratings reflect
delays in term loan servicing by Rolly; the delays have been
caused by weak liquidity.
Facilities Ratings
---------- -------
INR100.30 Million Term Loan D (Assigned)
INR40.00 Million Packing Credit* P5 (Assigned)
INR60.00 Million Post Shipment P5 (Assigned)
Credit*
INR5.00 Million Bank Guarantee P5 (Assigned)
* Fully Interchangeable
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Rolly, Dynamix Chains Manufacturing
Private Limited, SAY India Jewellers Pvt Ltd, Lily Jewellery Pvt
Ltd, Yash Jewellery Pvt Ltd, Dania Oro Jewellery Pvt Ltd, Jewel
America Inc, and Barjon Inc. This is because these entities,
collectively referred to as the Dynamix group, are under a common
promoter group, in the same line of business, and have operational
synergies and fungible cash flows among them.
About the Group
The Dynamix group of companies, engaged in the manufacture of
jewellery, is promoted by Mr. Pramod Goenka. The group
manufactures gold, silver, and diamond-studded jewellery, which is
mainly exported to countries such as the US and the UK.
Set up in October 2007, Dynamix Chains manufactures specialised
chains and pendants, which are exported to the US. SAY India,
Lily, Dania Oro and Yash (set up in May 1995, February 2004,
February 2006, and November 2006, respectively), export diamond-
studded gold jewellery, while Rolly (established in January 2005)
exports light-weight electro-form jewellery. Jewel America, a
leading jewellery wholesaler in the US, was acquired by the group
in February 2009.
Rolly reported a profit after tax PAT of INR6 million on net sales
of INR429 million for 2008-09 (refers to financial year, April 1
to March 31), as against a PAT of INR5 million on net sales of
INR291 million for 2007-08.
SAMTEX FASHIONS: Fitch Assigns 'BB' National Long-Term Rating
-------------------------------------------------------------
Fitch Ratings has assigned India-based Samtex Fashions Limited
(SFL) a National Long-term rating of 'BB(ind)'. The Outlook is
Stable. At the same time, Fitch has assigned National ratings to
SFL's bank loans:
-- Long-term bank loans of INR122.5 million: 'BB(ind)';
-- Fund based working capital limits of INR230 million:
'BB(ind)'/'F4(ind)';
-- Non-fund based working capital limits of INR65 million:
'BB(ind)'/'F4(ind)'; and
-- Stand-by limits of INR59 million: 'BB(ind)'/'F4(ind)'.
In line with Fitch's parent and subsidiary rating linkage
methodology, SFL's ratings are driven by the strong linkages with
its wholly owned subsidiary SSA International ('BB(ind)'/Stable).
As at 28 February 2010, SFL has issued INR2,650 million in
corporate guarantees to SSA. In turn, the subsidiary guaranteed
Samtex's INR34.5m term loan, which was repaid in FY10. SFL's and
SSA's relationship is that of a weak parent and strong subsidiary,
and the ratings are based on SFL's consolidated profile.
Rating constraints include declining revenues in the textile
business since FY08, and low margins in both textile (in SFL) and
rice milling businesses (in SSA). SFL's derives almost 90%-95% of
its revenues from exports to the US, which has been facing
slowdown since FY08. This corresponded to the declines in SFL's
textile business revenues by 2% in FY08 and 17% in FY09. Fitch
notes that the exports markets have been recovering since Q3FY10,
which should reflect in better revenues and margins in FY11. The
ratings are supported by the longstanding experience of the
management in both businesses.
The company sells almost 40% of its production to a single
customer (Itochu Prominent USA LLC); thus, facing significant
customer concentration risk. SFL mainly manufactures formal
clothing for men, which lowers the element of fashion risk.
The company has a high leverage and gearing, both on a standalone
and consolidated basis. The consolidated net debt/EBITDA ratio
was 6.3x in FY09 from 5.6x in FY08. As of 31 March 2009, SFL's
standalone total debt was INR308.9m which adjusted for off balance
sheet corporate guarantees of INR2,320m, translates into
standalone adjusted leverage of 59x. The consolidated adjusted
debt to adjusted capitalization ratio was 73.6% in FY09. Both
businesses for SFL are highly working capital intensive and the
company has been showing high utilization of its fund based
working capital limits, lowering liquidity cushion.
In its rice milling business, SSA faces regulatory risk, adverse
raw material price changes, low brand recall and high working
capital requirements. These risks are partly offset by
established operations and consistent growth in revenues.
SFL was incorporated in 1993 as a 100% export-oriented unit, in
technical collaboration (for three years) with Samsung Group of
South Korea. SFL manufactures readymade garments, mainly trousers
for men and other garments such as jackets, coats and skirts for
exports to the US at its manufacturing facility at Noida Export
Processing Zone in Uttar Pradesh. SFL recorded standalone
revenues of INR540.1 million, EBITDA of INR44.3 million, and net
income of INR0.4 million in FY09. On a consolidated basis, the
revenues, EBITDA and net income were INR5,271.3 million,
INR301.9 million and INR79.9 million, respectively.
SLN COFFEE: CRISIL Reaffirms 'B' Rating on INR260 Mil. Term Loan
----------------------------------------------------------------
CRISIL ratings on the bank facilities of SLN Coffee (P) Ltd
continue to reflect SLN's weak financial risk profile marked by
high gearing and weak debt protection metrics, low operating
profits and susceptibility of margins to fluctuations in coffee
prices and exchange rates. These weaknesses are partially offset
by SLN's established position in the coffee trading market in
India.
Facilities Ratings
---------- -------
INR80 Million Letter of Credit P4 (Assigned)
INR400 Million Cash Credit Limit B/Stable
(Enhanced from INR180 Million)
INR260 Million Term Loan B/Stable (Reaffirmed)
INR80 Million Bills Receivables P4
Discounting (Enhanced from INR60
Million)
INR230 Million Packing Credit
(Reduced from INR350 Million) P4 (Reaffirmed)
Outlook: Stable
CRISIL believes that SLN will continue to benefit from its
efficient coffee beans procurement system, strong relationships
with buyers, and additional revenues from the instant coffee
business. The outlook may be revised to 'Positive' if SLN scales
up its operations and realizes higher margins, thereby improving
its debt protection metrics. Conversely, the outlook may be
revised to 'Negative' if the company's margins in the instant
coffee business are lower than expected, thereby leading to lower
cash accruals and constrained debt repayment ability.
About SLN Coffee
Incorporated in 2004, SLN is a closely held company engaged in
coffee trading and manufacturing instant coffee. The company
sells its merchandise in both the domestic and the export markets.
It has an in-house curing and processing facility, with a capacity
of 25,000 tonnes per annum (TPA). In October 2008, the company
commissioned an instant coffee plant, with a capacity of 3000 TPA,
in the industrial area of Kushalanagar, Karnataka.
For 2008-09 (refers to financial year, April 1 to March 31), SLN
reported a net loss of INR9.3 million on net sales of INR3.3
billion, against a profit after tax of INR25 million on net sales
of INR3.0 billion in the previous year.
STANGL PICKLES: CRISIL Assigns 'P4' Ratings on Various Bank Debts
-----------------------------------------------------------------
CRISIL has assigned its 'P4' rating to the bank facilities of
Stangl Pickles & Preserves, part of the Ravibala group.
Facilities Ratings
---------- -------
INR25.0 Million Export Packing Credit P4 (Assigned)
INR50.0 Million Foreign Bill P4 (Assigned)
Discounting
INR8.0 Million Letter of Credit P4 (Assigned)
The rating reflects the group's weak financial risk profile, and
volatility in revenue profile. The rating also factors in the
group's exposure to risks related to government regulations,
adverse weather conditions, epidemic-related factors, and
volatility in raw material prices. These rating weaknesses are
partially offset by the experience of Ravibala group's promoters
in the gherkin-export business.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Ravibala Imports & Exports and Stangl,
collectively referred to as the Ravibala group. This is because
the entities are under common management, are in similar lines of
business, and have close operational linkages, including fungible
cash flows, with each other.
About the Group
Set up in 2004, Stangl is engaged in the packaging and exporting
of gherkins, processed in its flagship firm, Ravibala Imports.
The firm packages the processed gherkins in various bottle sizes
ranging from 70 ml to 1000 ml. Ravibala Imports set up in 1994 by
Mr. M.Gnanashekar, is the flagship firm of the group. Based in
Sivagangai, Tamil Nadu, the firm is into cultivation and export of
processed and semi-processed gherkins and also in the
manufacturing of coir pith. The group has gherkin processing
facility of around 7 million bottles per annum
The Ravibala group reported a profit after tax (PAT) of INR2.5
million on net sales of INR254.4 million for 2008-09 (refers to
financial year, April 1 to March 31), against a PAT of INR2.9
million on net sales of INR172.3 million for 2007-08.
SURAJ PRECISION: CRISIL Assigns 'BB' Rating on INR51.6MM LT Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to Suraj Precision
Engineering Works Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR51.60 Million Long Term Loan BB/Stable (Assigned)
INR60.00 Million Cash Credit BB/Stable (Assigned)
INR20.00 Million Letter of Credit P4+ (Assigned)
The ratings reflect SPEWPL's exposure to risks relating to
customer concentration in its revenue profile, and large working
capital requirements. These weaknesses are partially offset by
the company's moderate financial risk profile, and the benefits
that the company derives from its healthy track record in the
automobile components industry.
Outlook: Stable
CRISIL believes that SPEWPL will maintain a stable credit risk
profile over the medium term, on the back of its established
presence in the auto components industry. The outlook may be
revised to 'Positive' if the company diversifies its revenue
streams and customer base, and reports sustainable growth in
revenues and accruals. On the other hand, the outlook may be
revised to 'Negative' in case of deterioration in the company's
relationships with its major customers, substantial decline in its
revenues, or large debt-funded capex, affecting its financial risk
profile.
About Suraj Precision
Set up in 1979 in Chennai by Mr. Sushil Haridass and Mr. C K
Haridass, SPEWPL manufactures automobile components, including
steering races and retainers for two wheelers. The company sells
its products to Hero Honda Motors Ltd (rated 'AAA/Stable/P1+' by
CRISIL) and Royal Enfield, a unit of Eicher Motors Limited. SPEWPL
also undertakes job work for Ashok Leyland Ltd (ALL; rated 'AA-
/Negative/P1+' by CRISIL) and Delphi-TVS Diesel Systems Ltd
(Delphi-TVS) and Ucal Auto Pvt Ltd.
SPEWPL reported a profit after tax (PAT) of INR0.9 million on net
sales of INR248.5 million for 2008-09 (refers to financial year,
April 1 to March 31) against a PAT of INR5.8 million on net sales
of INR228.1 million for 2007-08.
UTTAM SUGAR: Fitch Assigns National Long-Term Rating at 'B'
-----------------------------------------------------------
Fitch Ratings has assigned India's Uttam Sugar Mills Limited a
National Long-term rating of 'B(ind)'. The Outlook is Stable.
The agency has also assigned these ratings to its bank loans:
-- Term loans aggregating INR2.99 billion: 'B(ind)';
-- Fund based working capital limits totalling
INR3.49 billion: 'B(ind)'/'F4(ind)'; and
-- Non-fund based working capital limits totalling
INR137.5 million: 'F4(ind)'
The assigned ratings reflect USML's stretched financial profile
given its recently completed debt restructuring. The company
underwent substantial capex, over FY05-FY08, of around
INR5.2 billion to expand its sugar production facilities; this was
primarily debt-funded and led to total adjusted debt rising to
INR4.9 billion at FYE08 (FYE05: INR1.5 billion; also note that in
2008, USML changed its financial year from earlier 1 October -
30 September to 1 January - 31 December. The reported results for
FY08 pertain to the 15 month period ending Dec 08). Profitability
suffered significantly during the downturn in the sugar industry
over FY07-FY08 - Op. EBITDAR margins dropped to 8%-11% (FY05-
FY06: 26%-29%). Also, high interest costs on the back of piled-up
debt led to USML incurring net losses during FY07 and FY08, while
financial leverage (total adjusted net debt/Op. EBITDAR) reached
15.2x and 14.8x (annualized) respectively. The ratings are also
constrained by the cyclical nature of the sugar industry and the
significant influence of the Indian government's regulations and
policies on sugar and sugarcane pricing, as well as on
imports/exports.
The agency notes that the company's major capex plans are now
complete and no substantial capex is envisaged in the medium-term,
with the exception of ongoing INR750 million capex on cane
crushing capacity expansion and power-cogeneration facility over
2009-10. USML's recent diversification into power-cogeneration
and ethanol production improved profitability -- in CY09, it
reported total sales of INR4275.67 million (FY08: INR3751 million)
and net income was INR266.4 million (net loss of INR437.6m in
FY08). Fitch's has a Positive Outlook on India's sugar industry
in 2010 (for more information, please refer to the Special Report,
entitled "Indian Sugar Outlook" published February 4, 2010).
Negative rating triggers would include higher-than-anticipated
debt-funded capex, and a failure to adhere to Corporate Debt
Restructuring terms and conditions. While a sustained improvement
in revenues and profitability, and continued deleveraging leading
to substantial improvement in financial leverage could have a
positive impact on ratings.
USML is a listed company with four sugar plants across the states
of Uttar Pradesh and Uttaranchal, and a total cane-crushing
capacity of 22750tonnes crushed per day (TCD) -- expand. The
company recently set up a 75klpd ethanol distillery, and is in the
process of increasing its cane crushing capacity to 25250TCD and
augmenting its power-cogeneration capacity.
VIJAI SPINNERS: CRISIL Assigns 'BB-' Rating on INR105MM Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable' rating to the bank facilities
of Vijai Spinners, which is part of the VSF group.
Facilities Ratings
---------- -------
INR105.0 Million Term Loan BB-/Stable (Assigned)
INR75.0 Million Bank Overdraft BB-/Stable (Assigned)
The rating reflects the VSF group's average financial risk
profile, and modest scale of operations in the highly fragmented
textile industry. These rating weaknesses are partially offset by
the benefits that the VSF group derives from its promoters'
experience in the textiles business.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Vijai Spinners and Sri Saravana
Fabrics, together referred to as the VSF group; this is because
these firms have common promoters and derive considerable business
synergies from each other.
Outlook: Stable
CRISIL believes that the VSF group will continue to benefit from
its promoters' experience and established relations with customers
and suppliers in the textiles business over the medium term. The
outlook may be revised to 'Positive' if the group achieves
significantly better-than-expected growth in revenues while
maintaining its profitability. Conversely, the outlook may be
revised to 'Negative' if the group's revenues, profitability or
debt protection metrics deteriorate significantly over the medium
term.
About the Group
Set up by Mr. Arjun Raja in 1982, the VSF group comprises two
firms-Vijai Spinners, set up in 1982, and Sri Saravana Fabrics,
set up in 2006.
Vijai Spinners, based in Rajapalayam (Tamil Nadu), is managed by
Mr. Abhimanyu Raja (the founder's son), and manufactures cotton
yarn with an installed capacity of 17,100 spindles. Sri Saravana
Fabrics, also based in Rajapalayam, is managed by Mr. Abhimanyu
Raja and his son-in-law, Mr. D Sarvannan, and manufactures cotton
fabrics with an installed capacity of 20 looms.
Vijai Spinners reported a profit after tax (PAT) of INR4.1 million
on net sales of INR155 million for 2008-09 (refers to financial
year, April 1 to March 31) against a PAT of INR5.0 million on net
sales of INR127 million for 2007-08.
VXL INSTRUMENTS: CRISIL Places 'B-' Rating on INR108MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'B-/Negative/P4' ratings to the bank
facilities of VXL Instruments Limited.
Facilities Ratings
---------- -------
INR108.00 Million Cash Credit* B-/Negative (Assigned)
INR150.00 Million Letter of Credit P4 (Assigned)
* Includes proposed limit of INR18.00 Million
The ratings reflect VXL's weak debt protection metrics, small
scale of operations, working-capital-intensive operations, and
exposure to intense competition. These weaknesses are partially
offset by VXL's established position in the thin-client products
business backed by strong distribution support.
Outlook: Negative
CRISIL expects further deterioration in VXL's financial risk
profile, given the company's continued losses at the operating
level. The outlook may be revised to 'Stable' if VXL increase
revenues, generates profits, and strengthens its financial risk
profile. Conversely, the rating could be downgraded if VXL
continues to incur losses, or undertakes debt-funded capacity
expansion project.
About VXL Instruments
Incorporated in 1986 as a private company, and converted into a
public limited company in 1994, VXL has been into manufacture of
computer terminals and thin-client products for over three
decades. VXL is one of the leading players in thin-client and
server-based computing technologies. Its manufacturing operations
are located at the Electronic City, Bengaluru.
For 2008-09 (refers to financial year, April 1 to March 31), VXL
reported a loss after tax of INR24 million on net sales of INR0.9
billion. For 2007-08, it reported a loss after tax of INR54
million on net sales of INR1.0 billion.
WOODWORTH TREXIM: CRISIL Puts 'BB-' Rating on INR11MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Woodworth Trexim Pvt Ltd, which is part of the
Woodworth group.
Facilities Ratings
---------- -------
INR11.0 Million Cash Credit Limits BB-/Stable (Assigned)
INR73.0 Million Letter of Credit P4+ (Assigned)
INR0.5 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the Woodworth group's weak financial risk
profile marked by low profitability and small net worth. The
ratings also factor in the group's exposure to business
concentration risk with high dependence on Malaysian timber for
its operations. These rating weaknesses are partially offset by
the experience of the group's promoters in the timber business.
As part of its rating exercise, CRISIL has combined the business
and financial risk profiles of Woodworth, Perfex Impex Pvt Ltd
(PIPL), and Shankar Saw Mills Pvt Ltd. This is because WTPL,
PIPL, and SSMPL (collectively referred to as the Woodworth group)
have a common management and are engaged in similar lines of
business.
Outlook: Stable
CRISIL believes that the Woodworth group will maintain its
business risk profile over the medium term on the back of its
established market position. The group's financial risk profile
will remain constrained because of its small net worth and high
gearing. The outlook may be revised to 'Positive' if the group's
profitability increases substantially, or in case of large equity
infusion into the group companies, resulting in an increase in the
group's consolidated net worth. Conversely, steep decline in the
Woodworth group's revenues and profitability may lead to revision
in outlook to 'Negative'.
About Woodworth Trexim
Woodworth, set up by Mr. Bhagwan Lal Patel in 1997, trades in
timber. The group sources the timber locally as well as from
Burma, Africa, Nigeria, and Malaysia. PIPL and SSMPL are engaged
in timber sawing.
The Woodworth group reported a profit after tax (PAT) of INR4.2
million on net sales of INR741 million for 2008-09 (refers to
financial year, April 1 to March 31), against a PAT of INR2.9
million on net sales of INR679 million for 2007-08.
YOGBHAN CONSULTANTS: CRISIL Reaffirms Rating on INR25MM Bank Debts
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of Yogbhan Consultants &
Contractors Pvt Ltd continue to reflect YBCC's weak financial risk
profile marked by a low operating margin, high gearing, and weak
debt protection measures.
Facilities Ratings
---------- -------
INR25.0 Million Cash Credit Limit B/Stable (Reaffirmed)
INR40.0 Million Bank Guarantee Limit P4 (Reaffirmed)
The ratings also factor in the company's exposure to intense
competition in the infrastructure and industrial sub-contracting
segments, and its small scale of operations. These rating
weaknesses are partially offset by the promoters long-standing
experience and diversified customer base.
Outlook: Stable
CRISIL believes that YBCC will maintain its credit risk profile
over the medium term on the back of promoters' experience and
diversified customer base. However, the financial risk profile
will remain constrained due to its low operating margin and weak
debt protection measures. The outlook may be revised to
'Positive' if the company scales up its operations substantially,
leading to better-than-expected cash accruals and significant
improvement in its financial risk profile. Conversely, the
outlook may be revised to 'Negative' if YBCC undertakes a large,
debt-funded capital expenditure programme, leading to
deterioration in its capital structure, diversifies into unrelated
businesses, or if its sales volumes decline or margins deteriorate
steeply, resulting in a weaker financial risk profile.
YBCC was established in 1993 by Mr. Yogbhan Singh and his
brothers. The company is primarily involved in operation and
maintenance of stone crushing and screening plants used in road
construction. It also undertakes design, erection, and
commissioning of industrial and infrastructural plants.
For 2008-09 (refers to financial year, April 1 to March 31), YBCC
reported a profit after tax (PAT) of INR0.22 million on net sales
of INR89.9 million, against a PAT of INR0.96 million on net sales
of INR101 million for the previous year.
=================
I N D O N E S I A
=================
ARTHASAKA INTI: Gov't. Suspends Operations Over Regulations
-----------------------------------------------------------
The Jakarta Post reports that Finance Minister Sri Mulyani
Indrawati has suspended the operation of two multi-finance
companies, PT Suprawira Finance and PT Arthasaka Inti Finance, for
failing to comply with multi-finance regulations.
The Post, citing Ngalim Sawega, the secretary of Capital Market
and Financial Institutions Supervisory Agency (Bapepam-LK),
relates the finance minister said that the two companies' permits
were temporarily revoked for their failure to comply with the 2006
multi-finance regulations on minimal capital and financing
requirements.
The Post relates Ngalim said that the finance minister had at the
same time lifted the suspension of PT Sunindo Parama Finance. "PT
Sunindo Parama Finance can now resume its financial services. But
PT Suprawira Finance and PT Arthasaka Inti Finance are forbidden
from making new financing contracts," he said.
According to the Post, the finance minister earlier this week
suspended the business licenses of three other multifinance
companies namely PT Artha Sedaya Finance, PT Mandiri Intifinance
and PT Primadana Putra Finance.
BUKIT MAKMUR: Delta and Recapital Swap Could Affect Moody's Rating
------------------------------------------------------------------
Moody's Investors Service notes the news concerning a possible
share swap between parent PT Delta Dunia Makmur Tbk and Recapital
Investment Group. While the proposed transaction is non-binding
and is only in preliminary stages of negotiation, Moody's notes
that it may have potential negative ramifications for PT Bukit
Makmur Mandiri Utama Ba3 corporate family and senior secured bond
ratings depending on the final shareholding structure and
management of the potential Change of Control covenant .
Delta plans to launch a IDR10 trillion rights issue which is
expected to be substantially taken up by Recap, according to the
Delta's recent announcement. At the same time, an affiliate of
Recap will issue a Mandatory Exchangeable Bond which will be
exchangeable at maturity (expected to be April 2011) into shares
in PT Berau Coal Energy. The MEB is to be taken up by Delta.
Delta is currently 40% owned by a consortium led by Indonesian
private equity firm, Northstar Equity Partners.
Recap currently wholly owns BCE, which in turn owns a 90% stake in
PT Berau Coal, Indonesia's fifth largest coal producer. Post the
share swap, Delta will be the direct majority shareholder in BCE
and Recap will be a direct substantial shareholder in Delta.
"The transaction should cement further the relationship between
Buma and Berau given that the former accounts for some 77% of
Berau's coal production, although there should be no adverse
operational or financial impact on Buma, given the effective
locked-box around the company post its loan and bond financing in
October 2009," says Laura Acres, a Moody's Vice President and
Senior Credit Officer.
"However, the Buma loan agreements contain a change of control
clause at the Northstar to Delta level which requires a minimum
40% shareholding. If the transaction goes ahead as outlined with
Recap taking up substantial share of Delta's rights issue, it will
result in a dilution of Northstar's stake in Delta which may
trigger the change of control clause on the loan and hence the
cross default on the bonds unless Buma can negotiate a waiver from
its banks," adds Acres, also Moody's Lead Analyst for Buma.
Whether Buma's rating will be affected depends on whether the
Change of Control situation will materialize and if so, if the
company manages to negotiate for a waiver or come up with a
package that can satisfactorily address the cross default risk.
As such, Moody's will closely monitor the situation.
Buma's ratings were assigned by evaluating factors Moody's believe
are relevant to the credit profile of the issuer, such as i) the
business risk and competitive position of the company versus
others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and
iv) management's track record and tolerance for risk. These
attributes were compared against other issuers both within and
outside of Buma's core industry and Buma's ratings are believed to
be comparable to those of other issuers of similar credit risk.
The last rating action was taken on November 3, 2009, when Moody's
affirmed Buma's Ba3 corporate family and bond ratings following
the completion of the US$315 million bond issuance.
Buma is wholly owned by Delta which is in turn 40% owned by a
consortium led by Northstar. Delta's principal asset is a 100%
stake in Buma. Buma is one of Indonesia's leading mining services
contractors providing full mine services too many of Indonesia's
largest coal mine companies.
ENERGI MEGA: 2009 Loss Widens to IDR1.73 Tril. on Lower Oil Prices
------------------------------------------------------------------
The Jakarta Post reports that PT Energi Mega Persada booked
IDR1.73 trillion (US$190 million) net losses in 2009 due to "lower
prices and higher financing charges." Energi booked net losses of
IDR35 billion in 2008.
"2009 represented a difficult year for the company and was
characterized by a slowly improving operating environment from the
collapse in oil prices at the start of the year," the Post quoted
Energi's CEO Imam Agustino as saying in a statement.
The report relates Mr. Agustino said the company recorded a 102%
increase in financing costs during the year, up to IDR1.28
trillion.
Mr. Agustino said that the firm would focus on efficiency in
capital allocation. It spent $53 million on capital expenditure
in 2009, down from $198 million spent in 2008, the report notes.
PT Energi Mega Persada Tbk is an Indonesia-based mining company.
In addition, the Company is engaged in the trading, services and
providing management services in the oil and gas industry. Its
projects include Malacca Strait PSC, Kangean PSC, Bentu & Korinci
PSC, Gebang JOB PSC, Gelam TAC and Semberah TAC. The Company has
a total number of 19 direct and indirect subsidiaries located in
the United States, Panama, Netherlands, British Virgin Island,
Singapore, Seychelles, England and Indonesia.
LIPPO KARAWACI: Mulls $350 Mil. Global Bond Issue This Year
-----------------------------------------------------------
PT Lippo Karawaci intends to sell $350 million in global bonds to
cover refinancing and capital expenditure this year, according to
Jakarta Globe.
The Globe relates the company said $250 million of the proceeds
would be used to restructure debt, with the remainder to be spent
on building hospitals outside of Java Island.
"The $350 million in global bonds will mature in 2015," the report
quoted Eddy Handoko, president director of Lippo Karawaci, as
saying.
Deutsche Bank and Citibank have been assigned as the underwriters
for the debt sale, the report notes.
Based in Indonesia, PT Lippo Karawaci Tbk (JAK:LPKR) -- is a
residential and commercial urban developer. The Company's
business segments are housing and land development, which consists
of building and developing urban and residential areas, commercial
and retail properties, office buildings and industrial estates;
healthcare and hospitals, which consists of management and
operation of hospitals in Jakarta and Surabaya, and hospitality
and infrastructure, which consists of real-estate investment trust
(REIT) and retail management, township management, water
treatment, sewage and wastewater treatment, public transportation,
maintenance, security, hotels and restaurants, country clubs, golf
courses and recreation facilities.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
March 4, 2010, Standard & Poor's Ratings Services revised the
outlook on PT Lippo Karawaci Tbk. to stable from negative. At the
same time, S&P also affirmed the 'B' long-term corporate credit
rating and issue rating on Lippo Karawaci's senior unsecured
US$250 million notes due 2011.
PT BUMI: S&P Puts BB/Stable/-- Regional Scale Rating
----------------------------------------------------
Standard & Poor's Ratings Services assigned its ASEAN regional
scale ratings to the three companies listed in the table below:
ASEAN scale
Existing corporate issuer credit
Company Country credit rating rating
------- ------- ------------------ -------------
Cambridge
Industrial
Trust Singapore BBB-/Stable/-- axA-
AmanahRaya
Real Estate
Investment Trust Singapore BBB-/Stable/-- axA-
PT Bumi
Resources Tbk. Indonesia BB/Stable/-- axBBB-
SUPRAWIRA FINANCE: Gov't. Suspends Operations Over Regulations
--------------------------------------------------------------
The Jakarta Post reports that Finance Minister Sri Mulyani
Indrawati has suspended the operation of two multi-finance
companies, PT Suprawira Finance and PT Arthasaka Inti Finance, for
failing to comply with multi-finance regulations.
The Post, citing Ngalim Sawega, the secretary of Capital Market
and Financial Institutions Supervisory Agency (Bapepam-LK),
relates the finance minister said that the two companies' permits
were temporarily revoked for their failure to comply with the 2006
multi-finance regulations on minimal capital and financing
requirements.
The Post relates Ngalim said that the finance minister had at the
same time lifted the suspension of PT Sunindo Parama Finance. "PT
Sunindo Parama Finance can now resume its financial services. But
PT Suprawira Finance and PT Arthasaka Inti Finance are forbidden
from making new financing contracts," he said.
According to the Post, the finance minister earlier this week
suspended the business licenses of three other multifinance
companies namely PT Artha Sedaya Finance, PT Mandiri Intifinance
and PT Primadana Putra Finance.
=========
J A P A N
=========
ARCH FINANCE: Moody's Confirms 'Ba1' Rating on Series 2007-1 Notes
------------------------------------------------------------------
Moody's Investors Service has announced this rating action:
Issuer: Arch Finance Limited
* JPY12,363.538M Series 2007-1 Notes, Confirmed at Ba1; previously
on December 24, 2009, Ba1, placed under review for possible
downgrade
This action follows the confirmation of the rating of the
underlying asset at Baa3 this week. The rating also takes into
account the risk of the collateral and the swap counterparty.
Moody's Investors Service is a publisher of rating opinions and
research. It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.
This release is not a solicitation or a recommendation to buy,
hold, or sell securities.
JAPAN AIRLINES: Says No Decision Yet on Job Cuts
------------------------------------------------
Japan Airlines Corp. hasn?t taken any decision yet on job cuts,
Taro Namba, a spokesman for the airline, told Bloomberg News by
phone on Tuesday, April 6.
According to Bloomberg News, Mr. Namba's comment came after the
Nikkei English News reported that the airline will cut 16,500 jobs
this fiscal year rather than over a three-year span as initially
planned.
Reuters relates that the Nikkei business daily said the proposed
cuts include 5,405 workers from cargo and other peripheral
operations, 2,460 flight attendants, 2,043 sales representatives
and 775 pilots. Staffing at Kansai International Airport and
Central Japan International Airport will be slashed 70% to 642
employees, reflecting reduced flight schedules, the Nikkei added.
The newspaper said Japan Airlines is currently soliciting 2,700
volunteers for early retirement, with two more rounds slated in
the coming months, Reuters notes.
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
Japan Airlines Corporation, Japan Airlines International Co., Ltd.
and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization January 19 in the
Tokyo District Court and filed a Chapter 15 petition in New York
(Bankr. S.D.N.Y. Case No. 10-10198). The Company said debt is
$28 billion.
Bankruptcy Creditors' Service, Inc., publishes Japan Airlines
Bankruptcy News. The newsletter tracks the Chapter 15 proceedings
and the bankruptcy proceedings in Tokyo undertaken by Japan
Airlines Corp. and its various affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
JLOC 36: Fitch Downgrades Ratings on Class D Notes to 'CC'
----------------------------------------------------------
Fitch Ratings has downgraded Class D of JLOC 36 LLC notes due
February 2016 and removed the Rating Watch Negative on this class.
The remaining classes of notes have been affirmed. The details of
the rating actions are:
-- JPY18,630m* Class A1 affirmed at 'AAA'; Outlook Stable;
-- EUR41.88m* Class A2 affirmed at 'AAA'; Outlook Stable;
-- US$5.13m* Class A3 affirmed at 'AAA'; Outlook Stable;
-- JPY5,017m* Class B affirmed at 'AA-'; Outlook Negative;
-- JPY2,656m* Class C1 affirmed at 'BBB+'; Outlook Negative;
-- EUR17.89m* Class C2 affirmed at 'BBB+'; Outlook Negative;
-- JPY3,173m* Class D downgraded to 'CC' from 'CCC'; Recovery
Rating of 'RR3'; off RWN; and
-- Class X (interest-only) affirmed at 'AAA'; Outlook Stable.
* as of March 31, 2010
The downgrade of the Class D notes reflects Fitch's concerns that
a principal loss for this class will probably be realized. One
underlying loan, originally backed by two residential properties
located in Hokkaido prefecture, defaulted in April 2009. One of
these properties was sold in March 2010, and the special servicer
is implementing work-out activities for the remaining property.
Fitch believes that the likelihood of full recovery of the senior
loan, which backs the rated notes, has decreased, considering the
offering sales price for that property in accordance with the
special servicer's business plan.
The Class A to C notes have been affirmed as the performance of
the remaining loans is generally in line with Fitch's
expectations. The Stable Outlooks for the Class A1, A2 and A3
notes reflect the agency's expectations that credit enhancement
levels will improve for these classes, as repayments at loan
maturity or following loan default will be allocated on a
sequential basis. However, Outlooks on the Class B, C1 and C2
notes remain Negative given the continued uncertainty about the
future of the Japanese commercial real estate market and the real
estate finance environment.
The rating on the interest-only Class X notes addresses only the
likelihood of receiving interests, while principal on the related
classes remain outstanding.
At closing, the notes were backed by 34 loans ultimately secured
by 99 commercial real estate properties in Japan. Seven loans
have been fully repaid and two defaulted loans have been resolved
with full recovery of the senior loan, which backs the rated
notes. This brings the total number of loans backing the
transaction to 25, secured by a total of 73 properties and sales
proceeds from two disposed properties and repayment proceeds from
one prepaid loan. Currently four loans are in default.
For further information on Fitch's surveillance criteria and
methodology, please see the criteria report, "Criteria for
Japanese CMBS Surveillance" and the special report, "Application
and Impact of the Japanese CMBS Surveillance Criteria". Both
reports were published on 2 September 2009 and are available on
the agency's website, www.fitchratings.com. Note that the reports
were published simultaneously and are intended to be read in
conjunction with each other. The criteria report describes the
approach and framework of the methodology, and the special report
details the application and assumptions adopted in the current
surveillance reviews.
Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to June
2008. Unlike a Rating Watch which notifies investors that there
is a reasonable probability of a rating change in the short term
as a result of a specific event, rating Outlooks indicate the
likely direction of any rating change over a one- to two-year
period.
JLOC VII: Fitch Downgrades Ratings on Class D Notes to 'CC'
-----------------------------------------------------------
Fitch Ratings has downgraded the Class D notes of JLOC VII Limited
due May 2011 and removed the Rating Watch Negative on this class.
The details of the rating actions are:
-- JPY1.13 billion* Class D notes downgraded to 'CC' from 'CCC';
Recovery Rating 'RR2'; off RWN; and
-- Class X notes (interest-only) affirmed at 'AAA'; Outlook
Stable.
* as of March 31, 2010
The downgrade of the Class D notes reflects Fitch's concerns over
the potential recovery amounts from the defaulted loan backing the
transaction. The loan is backed by a single-tenant retail
property located in Kanagawa prefecture. The special servicer is
implementing work-out activities in accordance with their business
plan. Fitch has concluded that a principal loss for the Class D
notes will probably be realized after reviewing the work-out
activities to date, and also considering the relatively short time
to legal final maturity in May 2011.
The rating on the interest-only Class X notes addresses only the
likelihood of receiving interests, while principal on the related
class remain outstanding.
At closing, the notes were backed by nine loans (including one
TBI) that are ultimately backed by 27 commercial real estate
properties in Japan. Eight loans have been fully repaid and the
principal amounts of Class A to C notes have been fully redeemed.
Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to June
2008. Unlike a Rating Watch which notifies investors that there
is a reasonable probability of a rating change in the short term
as a result of a specific event, rating Outlooks indicate the
likely direction of any rating change over a one- to two-year
period.
JLOC XXX: S&P Downgrades Ratings on Class D Floating-Rate Certs.
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on JLOC XXX
Trust Certificates' class D floating-rate trust certificates by
three notches and its ratings on JLOC XXX Satellite Trust's
classes Mezz C-1 and Mezz C-2 mezzanine trust certificates by one
notch. At the same time, Standard & Poor's kept on CreditWatch
with negative implications its ratings on JLOC XXX Trust
Certificates' classes B to D and JLOC XXX Satellite Trust's
classes Mezz C-1 and Mezz C-2, where they had been placed on
Feb. 9, 2010. At the same time, Standard & Poor's affirmed its
'AAA' ratings on JLOC XXX Trust Certificates' classes A and X.
Of the six specified bonds that initially backed this transaction,
only two specified bonds remain (the review of these two specified
bonds is underway). The downgrades reflect these:
The sales of the real estate properties backing one of the
transaction's two remaining specified bonds (property-liquidation
type; one specified bond that is due to mature in December 2010
representing about 35.7% of the total initial issuance amount of
the floating-rate trust certificates and the Satellite Trust
mezzanine trust certificates), have fallen behind schedule. In
light of recent real estate market conditions, uncertainty appears
to be mounting over the prices at which the properties are likely
to be liquidated by the asset manager. Accordingly, S&P expects
the recovery amount from the properties to be somewhat lower than
S&P's initial assumption.
With regard to the other remaining specified bond (one specified
bond that is due to mature in November 2011 representing about
15.1% of the total initial issuance amount of the floating-rate
trust certificates and the Satellite Trust mezzanine trust
certificates), S&P see the recovery amount from the related
collateral properties declining to a level that is somewhat lower
than S&P's initial assumption, based on the possibility that the
specified bond may not be redeemed on the maturity date and the
properties may need to be liquidated.
S&P's analysis of the two specified bonds is based on S&P's
revised assumptions with respect to the recovery amounts from the
related collateral properties.
S&P kept on CreditWatch with negative implications its ratings on
JLOC XXX Trust Certificates' classes B to D and JLOC XXX Satellite
Trust's classes Mezz C-1 and Mezz C-2 because S&P has yet to
finalize its review of the transaction's two remaining specified
bonds. In particular, S&P needs to assess the asset manager's
property sales plan and the recovery prospects of the related
collateral properties. Upon completion of its review, S&P intends
to review the ratings on the five tranches that S&P kept on
CreditWatch negative.
S&P affirmed its rating on classes A and X. However, S&P is
considering amending the rating methodology for interest-only
certificates, which include class X of this transaction. If the
proposal is adopted, it could affect the rating on class X.
JLOC XXX Trust Certificates and JLOC XXX Satellite Trust form a
two-tier transaction that is Japan's largest-ever CMBS (commercial
mortgage-backed securities) transaction. The floating-rate trust
certificates and the Satellite Trust mezzanine trust certificates
were initially secured by a total of six specified bonds, which
were originally backed by 126 real estate properties. The
transaction was arranged by Morgan Stanley Japan Securities Co.
Ltd., and ORIX Asset Management & Loan Services Corp. acts as the
servicer for this transaction.
The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the JLOC XXX Trust
Certificates' legal final maturity date in 2014 for the class A
floating-rate trust certificates; the full payment of interest and
ultimate repayment of principal by the legal final maturity date
for the class B to D floating-rate trust certificates; and the
timely payment of available interest for the interest-only class X
floating-rate trust certificates. The ratings also address the
ultimate repayment of principal and the full payment of interest
by the legal final maturity date in 2014 for the class Mezz C-1
and Mezz C-2 Satellite Trust mezzanine trust certificates.
Rating Lowered And Kept On Creditwatch Negative
JLOC XXX Trust Certificates
JPY333.8 billion floating-rate trust certificates due April 2014
Class To From Initial issue amount
----- -- ---- --------------------
D BB/Watch Neg BBB/Watch Neg JPY35.5 bil.
Ratings Kept On Creditwatch Negative
JLOC XXX Trust Certificates
JPY333.8 billion floating-rate trust certificates due April 2014
Class Rating Initial issue amount
----- ------ --------------------
B AA/Watch Neg JPY35.4 bil.
C A/Watch Neg JPY37.3 bil.
Ratings Affirmed
JLOC XXX Trust Certificates
JPY333.8 billion floating-rate trust certificates due April 2014
Class Rating Initial issue amount
----- ------ --------------------
A AAA JPY225.6 bil.
X AAA JPY333.8 bil. (initial notional principal)
Ratings Lowered And Kept On Creditwatch Negative
JLOC XXX Satellite Trust
JPY9.3 billion Satellite Trust mezzanine trust certificates
due April 2014
Class To From Initial issue amount
----- -- ---- --------------------
Mezz C-1 BB-/Watch Neg BB/Watch N JPY8.3 bil.
Mezz C-2 BB-/Watch Neg BB/Watch Neg JPY1.0 bil.
JLOC XXXIV: Moody's Reviews Ratings on Various Classes of Notes
---------------------------------------------------------------
Moody's Investors Service has placed the ratings for the Class B
through D Trust Certificates issued by JLOC XXXIV Trust on review
for possible downgrade. The final maturity of the trust
certificates will take place in October 2013.
The individual rating actions are listed below:
-- Class B, Aa2 placed under review for possible downgrade;
previously, Definitive Rating Assigned Aa2 on March 14, 2007
-- Class C, Baa3 placed under review for possible downgrade;
previously, Downgraded to Baa3 from A2 on July 1, 2009
-- Class D, B2 placed under review for possible downgrade;
previously, Downgraded to B2 from Baa2 on July 1, 2009
JLOC XXXIV Trust, effected in March 2007, represents the
securitization of two TMK bonds and a non-recourse loan.
The non-recourse loan has been paid in full, and the transactions
are currently secured by the two liquidating TMK bonds.
Moody's received a servicer report on the bonds dated March 24,
2010, which reported that the Asset Manager plans to dispose of
the collateral properties at prices lower than Moody's expected.
This rating action has been prompted by the disposals since the
last rating action in July 2009 as well as the Asset Manager's
disposal plan. It reflects Moody's growing concern about the
disposal plan and the need to reconsider Moody's expected property
value and assumptions regarding the disposal plan.
For its review, Moody's will interview the asset manager on its
disposal plans and management strategy for the properties, to
decide whether to confirm or downgrade the ratings of the Class B
through Class D.
Moody's Investors Service is a publisher of rating opinions and
research. It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.
This release is not a solicitation or a recommendation to buy,
hold, or sell securities.
JLOC XXXIV: S&P Downgrades Rating on Class D Certs. to 'BB'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'BB' from 'BBB' its
rating on the class D trust certificates issued under the JLOC
XXXIV transaction and kept the ratings on classes B to D on
CreditWatch with negative implications, where they had been placed
on Jan. 18, 2010. At the same time, Standard & Poor's affirmed
its 'AAA' ratings on classes A and X.
S&P downgraded class D because the liquidation of the real estate
properties backing the transaction's two remaining TMK bonds
(property-liquidation type; the review of these two TMK bonds is
underway) has fallen behind schedule. In light of recent real
estate market conditions, S&P expects the recovery amounts from
the properties to be somewhat lower than S&P's initial
assumptions. S&P's analysis of the two TMK bonds is based on
S&P's revised assumptions with respect to the recovery amounts
from the related collateral properties.
S&P kept on CreditWatch with negative implications S&P's ratings
on classes B to D because S&P has yet to finalize its review of
the transaction's two remaining TMK bonds. In particular, S&P
needs to assess the asset manager's property sales plan and the
recovery prospects of the related collateral properties. Upon
completion of S&P's review, S&P intends to review the ratings on
the three tranches that S&P kept on CreditWatch negative.
S&P affirmed its ratings on classes A and X. However, S&P is
considering amending the rating methodology for interest-only
certificates, which include class X of this transaction. If the
proposal is adopted, it could affect the rating on class X.
JLOC XXXIV is a multi-borrower CMBS transaction. The trust
certificates were initially secured by two TMK bonds and a
nonrecourse loan. The TMK bonds and the nonrecourse loan were
originally backed by 61 real estate properties and two loans
extended to two obligors. The transaction was arranged by Morgan
Stanley Japan Securities Co. Ltd., and ORIX Asset Management &
Loan Services acts as the servicer for this transaction.
The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's legal
final maturity date for the class A trust certificates, the full
payment of interest and ultimate repayment of principal by the
legal final maturity date for the class B to D certificates, and
the timely payment of available interest for the interest-only
class X certificates.
Rating Lowered And Kept On Creditwatch Negative
JLOC XXXIV Trust Certificate
JPY67.1 billion trust certificates due Oct. 2013
Class To From Initial issue amount Coupon type
----- -- ---- -------------------- -----------
D BB/Watch Neg BBB/Watch Neg JPY6.9 bil. Floating rate
Ratings Kept On Creditwatch Negative
JLOC XXXIV
Class Rating Initial issue amount Coupon type
----- ------ -------------------- -----------
B AA/Watch Neg JPY8.8 bil. Floating rate
C A/Watch Neg JPY8.9 bil. Floating rate
Ratings Affirmed
JLOC XXXIV
Class Rating Initial issue amount Coupon type
----- ------ -------------------- -----------
A AAA JPY42.5 bil. Floating rate
X* AAA JPY67.1 bil. (Initial notional principal)
* Interest only
L-JAC8 TRUST: Moody's Takes Rating Actions on Five Classes
----------------------------------------------------------
Moody's Investors Service has announced rating actions for five
classes of trust certificates issued by L-JAC8 Trust. The final
maturity of the trust certificates will take place in January
2013.
The individual rating actions:
-- Class A, downgraded to Ba1 from A1; previously, downgraded to
A1 from Aa2 on December 22, 2009
-- Class B, downgraded to Caa2 from B2; previously, downgraded
to B2 from A2 on December 22, 2009
-- Class C, downgraded to C from Caa3; previously, downgraded to
Caa3 from Baa3 on December 22, 2009
-- Class D, downgraded to C from Ca; previously, downgraded to
Ca from Ba3 on December 22, 2009
-- Class X, downgraded to Ba1 from A1; previously, downgraded to
A1 from Aa2 on December 22, 2009
L-JAC8Trust, effected in March 2008, represents the securitization
of two non-recourse loans.
Moody's previous rating action reflected the probability of loss
for a loan that defaulted in July 2009 ("Loan 1") and was slated
to be sold at auction in December 2009, but failed to sell.
Moody's also checked the performance of another loan ("Loan 2"),
which will mature in December 2010, and re-estimated recovery
stress in light of deterioration in revenue from rent and net cash
flow.
This downgrade for the Class C and D trust certificates reflects
losses on Loan 1, to be allocated to the C and lower classes of
the certificates. These losses resulted from the expedited sale
of the property at a price lower than the minimum reserve -- 61%
lower than Moody's initial value -- as decided by the relevant
party following the failure to sell the loan at auction.
In addition, Moody's has downgraded the Class A, B, and X trust
certificates, in light of the deterioration in credit support, as
losses from Loan 1 were higher than assumed in the previous rating
action.
Moody's Investors Service is a publisher of rating opinions and
research. It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.
This release is not a solicitation or a recommendation to buy,
hold, or sell securities.
ORSO FUNDING: Fitch Affirms Ratings on Various Classes of Notes
---------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Orso Funding CMBS 5's
trust beneficiary interests due February 2013, and removed the
Rating Watch Negative on the Class E and F TBIs. All ratings
actions are:
-- JPY13.28bn* Class A TBIs affirmed at 'AAA'; Outlook Stable;
-- JPY3.25bn* Class B TBIs affirmed at 'AA'; Outlook Stable;
-- JPY3.16bn* Class C TBIs affirmed at 'A-'; Outlook Negative;
-- JPY3.25bn* Class D TBIs affirmed at 'BB+' Outlook Negative;
-- JPY3.08bn* Class E TBIs affirmed at 'CC'; Recovery Rating
'RR3'; off RWN;
-- JPY0.21bn* Class F TBIs affirmed at 'CC'; Recovery Rating
'RR6'; off RWN; and
-- Class X TBIs (dividend-only) affirmed at 'AAA'; Outlook
Stable.
* as of March 30, 2010
The affirmations of Class E and F TBIs at 'CC' reflect Fitch's
opinion that the realization of principal loss is still probable.
The agency has removed the RWN status on these classes to reflect
its view that negative rating actions are unlikely in the short
term. Two of the seven loans originally backing this transaction
have defaulted, and the special servicer is implementing work-out
activities. In accordance with the special servicer's business
plan, three properties backing one of the defaulted loans have
been disposed of, with the total offering sales price for the
remaining 11 properties coming in much lower than the current
balance of that loan. The agency therefore believes that work-out
activities for the loan will eventually result in a principal loss
for Class E and F TBIs; however, it expects the sale of all the
remaining properties backing this particular loan will take more
than several months.
The affirmations of the Class A to D TBIs reflect the performance
of the remaining three loans in line with Fitch's expectations.
The Stable Outlooks for the Class A and B TBIs reflect Fitch's
expectations that credit enhancement levels will improve for these
classes as proceeds from defaulted loans will be allocated on a
sequential basis, while any principal repayments will be allocated
on pro-rata basis. However, Outlooks on the Class C and D TBIs
remain Negative given the continued uncertainty about the future
of the Japanese commercial real estate market and the real estate
finance environment.
The rating on the dividend-only Class X TBIs addresses only the
likelihood of receiving dividends, while principal on the related
classes remain outstanding.
At closing, the TBIs were backed by seven non-recourse loans
ultimately secured by 43 commercial real estate properties in
Japan. Two loans have been fully repaid and the transaction is
currently backed by five loans secured by a total of 30 properties
and the sales proceeds from four properties.
Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to June
2008. Unlike a Rating Watch which notifies investors that there
is a reasonable probability of a rating change in the short term
as a result of a specific event, rating Outlooks indicate the
likely direction of any rating change over a one- to two-year
period.
SOFTBANK CORP: May Acquire 50% Stake in JVC's Victor Unit
---------------------------------------------------------
Bloomberg News, citing the Yomiuri newspaper, reports that
Softbank Corp. is in talks to invest in JVC Kenwood Holdings
Inc.'s Victor Entertainment music unit.
According to Bloomberg News, the newspaper said Softbank may
initially acquire less than 50% of Victor and eventually raise the
stake to turn it into a subsidiary.
JVC Kenwood spokesman Takaaki Nose told Bloomberg News that he
wasn't aware of such a plan.
Softbank Corp. (TYO:9984) -- http://www.softbank.co.jp/-- is a
Japan-based company that provides digital information services.
The Company has six business segments. The Mobile Communication
segment provides cellular phone services and sells attached
cellular phone terminals. The Broadband and Infrastructure
segment provides high-speed Internet access services, Internet
protocol (IP) phone service, and contents. The Fixed
Communication segment provides transmission services for audio and
data, as well as exclusive line and data center services. The
Internet Culture segment is engaged in the Internet advertising,
broadband portal and auction businesses. The Electronic Commerce
(E-Commerce) segment sells personal computers (PCs), peripheral
devices and software for PC use, as well as provides business-to-
business and business-to-customer e-commerce services. The Others
segment is involved in the broadcasting media, technology service,
media marketing and overseas fund businesses.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
March 26, 2010, Moody's Investors Service changed to positive from
stable its outlook for the Ba2 long-term debt rating and issuer
rating of SOFTBANK CORP.
TORNADO FILM: Files For Bankruptcy in Tokyo District Court
----------------------------------------------------------
Japanese film distributor Tornado Film has filed for bankruptcy in
Tokyo District Court with total debts of JPY300 million (US$3.18
million), ScreenDaily reports. The report says Tornado president
Shuntaro Kanai cited harsh industry conditions as the cause of the
Company's closure.
According to ScreenDaily, the closure follows a string of
bankruptcies and downsizings since late 2008, including Rumble
Fish, Wise Policy, Xanadeux, Movie-Eye Entertainment and Cine Qua
Non this January.
According to the Variety, Mr. Kanai told creditors in a statement
that the company is under bankruptcy administration and that a
more detailed explanation of its financial status will be provided
"in the course of bankruptcy proceedings."
Established in 2005, Tornado Film distributed films including The
Bridge, Open Water 2: Adrift, Inside, and Afro Samurai:
Resurrection. Tornado also served as a production company on
local genre titles A Slit-Mouthed Woman, Goth and controversial
gore movie Grotesque, which was banned in the UK.
UDMAC-J1 TRUST: S&P Downgrades Ratings on Two Classes to 'CCC'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CCC' its ratings on
classes F and G and affirmed its ratings on classes A to E, and X
issued under the UDMAC-J1 Trust Certificates transaction.
On Sept. 3, 2009, Standard & Poor's lowered its ratings on classes
B to G saying that the transaction's seven underlying nonrecourse
loans were "loans considered to be in default". Indeed, four of
the five loans that have matured so far defaulted, while the
maturity of the other loan was extended by six months. The two
remaining loans have yet to mature.
The downgrades are based on these factors:
Four of the loans that S&P had designated as "loans considered to
be in default" (representing a combined 26.4% or so of the total
initial issuance amount of the trust certificates) indeed
defaulted, and S&P hold the view that uncertainty is mounting over
the recovery prospects of the related collateral properties.
With respect to the transaction's two remaining underlying loans
(representing a combined 13.1% or so of the total initial issuance
amount of the trust certificates) that have not matured, S&P see
little likelihood of repayment by the maturity dates. In
addition, S&P hold the view that uncertainty is mounting over the
recovery prospects of the related collateral properties.
Standard & Poor's currently assumes that the combined value of the
36 remaining collateral properties would be about 74% of S&P's
initial assumption of the properties' total value.
With regard to the loan whose maturity was extended (initial
maturity: March 2010; representing about 60.5% of the total
initial issuance amount of the trust certificates), interest rate
mismatch risk exists as loan conditions have been amended.
Standard & Poor's considered multiple stress scenarios with
respect to that loan. In light of the results of S&P's
examination, S&P expects changes to loan conditions to have
limited impact on dividend payments to the senior tranches
because: (1) the transaction is supported through cash flow
generated by the other six remaining underlying loans as well;
(2) the maturity of the loan has been extended by only six months;
and (3) the loan carries a higher interest rate during the
extension period (the borrower is charged a higher loan spread
during the extension period). Nevertheless, since changes to
conditions applicable to the loan may affect lower level tranches,
S&P need to monitor progress in the repayment of the loan and
interest rate trends. As some of the related collateral
properties of the extended loan were sold in March 2010, about 34%
of the loan principal had already been recovered. This has helped
enhance credit support for the senior tranches.
S&P affirmed its ratings on classes A to E, and X. However, S&P
is considering amending the rating methodology for interest-only
certificates, which include class X of this transaction. If the
proposal is adopted, it could affect the rating on class X.
At this point, however, Standard & Poor's has affirmed its rating
on class X.
UDMAC-J1 Trust Certificates is a multi-borrower CMBS transaction.
The trust certificates were originally secured by nonrecourse
loans extended to seven obligors. The nonrecourse loans were
initially backed by 40 real estate properties. The transaction
was arranged by UBS Securities Japan Ltd., and Premier Asset
Management Co. is the transaction servicer.
The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's legal
final maturity date for the class A trust certificates, the full
payment of interest and ultimate repayment of principal by the
legal final maturity date for the class B to G certificates, and
the timely payment of available interest for the interest-only
class X certificates.
Ratings Lowered
UDMAC-J1 Trust Certificates
JPY42.34 billion trust certificates due June 2013
Class To From Initial Issue Amount
----- -- ---- --------------------
F CCC B- JPY1.4 bil.
G CCC B- JPY0.34 bil.
Rating Affirmed
Class Rating Initial Issue Amount
----- ------ --------------------
A AAA JPY25.8 bil.
B AA- JPY4.4 bil.
C BBB+ JPY4.4 bil.
D BB- JPY4.5 bil.
E B JPY1.5 bil.
X AAA JPY42.34 bil.*
* Initial notional principal
The issue date was Sept. 28, 2007.
=============
L E B A N O N
=============
BYBLOS BANK: Fitch Upgrades Issuer Default Ratings to 'B'
---------------------------------------------------------
Fitch Ratings has upgraded Byblos Bank S.A.L's and Bank Audi
S.A.L's Long-term Issuer Default Ratings to 'B' from 'B-'. The
Outlook is Stable.
Fitch also affirmed a third Lebanese bank's, BLOM Bank, Support
Rating at '5'. The full list of ratings is listed at the end of
this commentary.
The upgrades follow the same action on Lebanon's Long-term local
and foreign currency IDRs to 'B' from 'B-' on 31 March 2010, with
Stable Outlook.
Byblos's and Audi's IDRs and Outlooks are closely related to, and
constrained by, those of the sovereign given that about half of
the banks' balance sheets remain invested in government debt,
either through holdings of government paper or maintained as a
reserve with the central bank.
Lebanon's banking system is one of the country's main strengths.
Liquid and consistently profitable, the Lebanese banks have
withstood the effects of the global credit crunch and the
international economic challenges as well as the recent political
unrest. Strict and effective restrictions imposed by the Central
Bank of Lebanon, accompanied by well-contained loan growth in the
past few years and low reliance on wholesale funding as well as
strong customer deposit growth (up 22% and 15% in 2009 and 2008,
respectively), have allowed Lebanese banks to maintain relatively
strong performances in recent years.
Byblos:
-- Long-term foreign currency IDR upgraded to 'B' from 'B-';
Outlook Stable.
-- Short-term foreign currency IDR affirmed at 'B'
-- Individual Rating affirmed at 'D'
-- Support Rating affirmed at '5'
-- Support Rating Floor affirmed at 'CCC'
Audi:
-- Long-term foreign currency IDR upgraded to 'B' from 'B-';
Outlook Stable.
-- Short-term foreign currency IDR affirmed at 'B'
-- Individual Rating is 'D'
-- Support Rating affirmed at '5'
-- Support Rating Floor affirmed at 'CCC'
BLOM:
-- Support Rating affirmed at '5'.
In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual ratings and the prospect of external support
is reflected in Fitch's Support ratings. Collectively these
ratings drive Fitch's Long- and Short-term IDRs.
* LEBANON: Fitch Upgrades Issuer Default Ratings to 'B'
-------------------------------------------------------
Fitch Ratings has upgraded Lebanon's Long-term foreign and local
currency Issuer Default Ratings to 'B' from 'B-'. The Outlooks on
both ratings are Stable. Fitch has also upgraded Lebanon's
Country Ceiling to 'B' from 'B-' and affirmed its Short-term
foreign currency IDR at 'B'.
"The upgrade reflects the significant decline in Lebanon's public
debt to 148% of GDP in 2009 from 180% in 2006, the favorable
prospects for growth following improvements in the regional
political and security situation, and the authorities' success in
maintaining macroeconomic stability through multiple stress tests
since 2005," says Purvi Harlalka, Associate Director in Fitch's
Sovereign Rating Group.
Lebanon's rating is also underpinned by the size and depth of the
local banking sector (350% of GDP in 2009), which is the main
holder of Lebanese government paper (60% of the stock) and allows
the government to sustain a higher level of debt than conventional
indicators would suggest. The banking system's willingness and
ability to finance the government is testament to the resilience
of its non-resident deposit base, due partly to a strong home bias
but also to conservative supervision and cautious interest rate
management. Sustained deposit inflows are critical to the rating,
given the domestic savings deficit, as they buoy growth and
support the public finances.
Renewed confidence, spurred by the resolution of the domestic
political impasse and the return of a functioning government, saw
non-resident deposits rise by 23% last year, sustaining output
growth at a rapid 8% in 2009. Given that the current political
entente appears sustainable in the short-term, Fitch expects
capital flows to remain high during 2010 and output to continue
expanding robustly, although at a more moderate 6.5% pace this
year. Together with the revival in tourism (arrivals reached a
record 1.8m in 2009), these inflows should also continue to add to
Lebanon's foreign exchange reserves excluding gold, which rose to
an unprecedented US$26bn (75% of GDP) in 2009 from US$17bn in 2008
(57% of GDP).
The substantial stock of FXR means that the Lebanese public sector
was a net external creditor (on a residency basis) to the tune of
58% of GDP in 2009, while the public sector in the average 'B'
range sovereign was a net external debtor to the extent of 14% of
GDP. The accumulation of sizeable international reserves has also
served to strengthen the credibility of the exchange rate peg,
which is vital to the stability of Lebanon's financial and
monetary systems given the high, albeit falling, rate of
dollarization (64% in 2009).
The Stable Outlook reflects Fitch's forecast that the public debt
ratio is likely to stabilize at current levels. The agency
understands that the 2010 budget, which when passed will be the
first approved budget since 2005, will be slightly expansionary,
given the need to increase infrastructure spending. As capital
expenditure has been restrained to the budgetary levels legislated
in 2005, this rise is long overdue. It is to be accompanied by
revenue raising measures, including a possible increase in VAT.
However, while spending growth is likely to outpace that of
revenues, the authorities intend to maintain a small primary
surplus to prevent any deterioration in debt dynamics. As a
result, Fitch expects the general government deficit to widen to
10.7% of GDP in 2010 from 9.1% of GDP in 2009, but the debt ratio
to remain constant at about 148% of GDP. Nevertheless, this will
remain the second-highest ratio amongst Fitch-rated sovereigns,
after Japan, and indebtedness is unlikely to fall significantly
further over the medium term in the absence of long-mooted
measures, notably the privatization of Lebanon's lucrative
telecoms business and the reining in of the electricity company
EDL's deficit. Achieving either of these structural reforms
remains politically challenging. As a result, Lebanon's
substantial debt burden, which consumes about 45% of government
revenues in interest service and leaves the republic vulnerable to
growth and interest rate shocks, will continue to restrain its
rating.
Lebanon's rating is also constrained by its susceptibility to
regional and domestic political tensions which renders the
sovereign's longer-term growth prospects and reform outlook
uncertain. However, Lebanon's high per capita income, liberal
business environment, and unblemished debt service record provide
important support to its creditworthiness.
===============
M A L A Y S I A
===============
CAB CAKARAN: Winding-Up Petition Served Against Unit
----------------------------------------------------
CAB Cakaran Corporation Berhad disclosed in a regulatory filing
that Kyros International Sdn. Bhd., a wholly-owned subsidiary of
CAB, has been served with a sealed copy of Winding-Up Petition by
Wellprade Sdn. Bhd.
The winding-up petition was lodged at the High Court of Malaya at
Kuala Lumpur (Winding Up Petition No. 28NCC-178-2010) by the
Petitioner against KISB on March 11, 2010.
The winding up petition was based on a claim made by the
Petitioner against KISB under a written notice pursuant to Section
218 of the Companies Act, 1965, calling upon KISB to make payment
of the judgment sum (after deducting KISB's judgment sum of
MYR37,404.20) amounting to MYR182,595.80 and interest of
MYR50,266.37 (based on 8% per annum from May 18, 2006, until
October 29, 2009) pursuant to a Court Judgment dated May 20, 2009,
being the amount allegedly due and owing by KISB to the Petitioner
in respect of refund under the Franchise Agreement entered between
the Petitioner and KISB.
KISB has on June 9, 2009, lodged in an appeal with the Court of
Appeal to appeal against the said High Court's decision dated
May 20, 2009. At the moment, KISB's lawyers are awaiting
notification from the Court of Appeal on the hearing date of the
said appeal.
The Petitioner has alleged in the winding up petition that KISB
has failed and neglected to pay the said sum or any part thereof.
The Petitioner is now seeking to wind up KISB pursuant to Section
218 of the Act.
CAB's total cost of investment in KISB is approximately
MYR9,264,000. KISB is not a major subsidiary of CAB. In the
unlikely event that the winding-up petition is successful, the CAB
Group has adequate resources to meet the commitment of the claim
and therefore the petition has no material financial and
operational impact on CAB Group.
Save as the legal cost to be incurred, there will be no expected
losses arising from the winding-up petition.
KISB has appointed solicitor to oppose or strike out the said
winding up petition.
The winding-up petition is scheduled for hearing on May 13, 2010.
About CAB Cakaran
Based in Malaysia, CAB Cakaran Corporation Berhad is principally
involved in investment holding and the provision of management
services. It operates in five segments. The investment holding
segment includes letting of properties, and renting of property,
plant and equipment. The agricultural/poultry farming/food
processing segment includes cultivation of timber crops, breeding
of parent stocks and hatching of eggs into day old chicks,
breeding of broiler chicken, processing and marketing of chicken,
and trading of poultry feeds and other farm consumables. The
marine products manufacturing segment's activities include
processing of fresh and frozen fishes, prawns and other marine
products. The fast food business includes manufacturing of bakery
products, fast food restaurants operation, and retailing of fast
food. The trading/value added products manufacturing segment
includes processing, exporting, wholesaling, distribution and
marketing of frozen marine and chicken products, and barbequed
meat.
PRIME UTILITIES: Posts MYR4.12 Mil. Net Loss in Qtr. Ended Jan. 31
------------------------------------------------------------------
Prime Utilities Berhad disclosed its financial report for the
third quarter ended January 31, 2010.
For the current period under review, the company posted a
MYR4.12 million net loss, compared with a MYR3.54 million net loss
in the same quarter of the preceding year.
As of January 31, 2010, the company's balance sheet showed
MYR666.46 million in total assets, MYR570.21 million in total
liabilities and MYR96.24 million in total shareholders' equity.
The company's balance sheet as of January 31, 2010, showed
strained liquidity with MYR168.89 million in total current assets
available to pay MYR406.86 million in total current liabilities.
Prime Utilities Berhad is a Malaysia-based investment holding
company. Through its subsidiaries, the Company is engaged in
property development. The Company's wholly owned subsidiaries
include PUB Properties Sdn. Bhd. and PUB Development Sdn. Bhd. In
addition, Prime Utilities Berhad has a 52 % interest in Supreme
Annexe Sdn. Bhd., Berkat Gagah Sdn. Bhd. and LBCN Development Sdn.
Bhd.
* * *
Prime Utilities Berhad has been classified as an affected issuer
under Amended Practice Note No. 17/2005 of the Bursa Malaysia
Securities Bhd's Listing Requirements for having an insignificant
business or operations.
RHYTHM CONSOLIDATED: Court Issues Wind-Up Order Against Unit
------------------------------------------------------------
Rhythm Consolidated Berhad said that the Court has allowed Antalis
(Malaysia) Sdn Bhd's winding-up application against Monosetia Sdn
Bhd, a subsidiary of RCB. As such, a winding-up order has now
been issued against Monosetia.
The Board of Monosetia will liaise with the relevant Insolvency
Department in relation to the matter.
The Company's board would seek an immediate legal advice on the
next course of action.
Based in Malaysia, Rhythm Consolidated Bhd is an investment
holding company. The Company operates in five business segments:
publishing, trading and distribution of books, paper stationery,
printing paper and instruction manuals; manufacturing of music
books, novels, educational books and paper stationery; import,
wholesale and retail of paper products; marketing of diaries,
organizers, leather and polyvinyl chloride (PVC) folders, wallets,
bags, rain coats and others, and information and communication
technology, which includes credit cards terminal development and
solutions, and system application developer and system support.
During the fiscal year ended June 30, 2007 (fiscal 2007), the
Company acquired an additional 15% of interest in its associated
company namely, Rhythm ICT Services Sdn. Bhd., formerly known as
IQ Card Services Sdn Bhd, (ICT). As a result, the Company owns
55% interest in ICT, and ICT became a subsidiary of the Company.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
May 1, 2009, Rhythm Consolidated Berhad was considered as an
Affected Listed Issuer under Practice Note No. 17/2005 of the
Bursa Malaysia Securities Berhad as the company was unable to
provide a solvency declaration to Bursa as per the announcement of
default in payment by Monosetia Sdn Bhd.
TENGGARA OIL: Incurs MYR422,000 Net Loss in Qtr. Ended January 31
-----------------------------------------------------------------
Tenggara Oil Berhad posted a net loss of MYR422,000 for the
fourth quarter ended January 31, 2010, compared with a MYR5.08
million net loss recorded in the same quarter of 2009.
The Group did not have any revenue for the fourth quarter under
review and the corresponding quarter last year due to the
discontinued operations of its subsidiaries. In the current
quarter, the Company had disposed off its quoted investment that
was previously written off and realized a gain of approximately
MYR129,000 for the year.
As of January 31, 2010, the company's balance sheet was illiquid
with MYR1.89 million of current assets and MYR45.50 million of
current liabilities.
Tenggara Oil Berhad is a Malaysia-based investment holding company
engaged in provision of management services. The principal
activities of the subsidiaries are filling, blending and
processing of lubricants. The Company's subsidiaries include
Tenggara Lubricant Sdn. Bhd., which is engaged in filling,
blending and processing lubricants; Tenggara Plaza Sdn. Bhd.,
which is engaged in letting and managing of property, and Tenggara
Concrete Sdn. Bhd., which is engaged in manufacturing and
supplying of ready-mixed concrete.
Tenggara is in the process of implementing a debt-restructuring
scheme with relevant parties.
====================
N E W Z E A L A N D
====================
VISION SECURITIES: S&P Downgrades Issuer Default Rating to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
long-term local currency issuer credit rating on New Zealand
finance company Vision Securities Ltd. to 'D' from 'B'.
This rating action follows the announcement that VSL's trustee,
Perpetual Trust, has appointed a receiver at the request of VSL's
directors. The directors' decision stems from the failed
settlement of a mortgaged property on March 26, 2010. The
settlement was expected to generate proceeds of about
NZ$6.75 million for VSL. The failure of this loan settlement
calls into question VSL's ability to meet its liquidity needs on
an ongoing basis. Additionally, the directors' decision to call
for the appointment of a receiver also reflects their view that
the loan is now unlikely to be repaid in full, with a further
write-down potentially placing the company in breach of its trust
deed. Despite the appointment of a receiver, the majority of the
interests of about 1,000 debenture investors--with total unrated
secured debenture stock of about NZ$30 million--will likely be
covered by the New Zealand government's Retail Crown Guarantee
Scheme.
VSL's 'B' rating was heavily constrained by its weak capital
position, which was assessed as being small and moderated by
related party loans, and its concentrated loan portfolio. The
rating also recognized VSL's concentrated and vulnerable funding
and liquidity profile. The adequacy of VSL's liquidity in recent
months was delicately balanced as a result of liquidity pressure
stemming from a combination of asset quality issues and a
reduction in cash holdings. These challenges, in turn, stemmed
from VSL not renewing its debenture prospectus in September 2009
pending completion and sign-off by its debenture trustee on its
recent recapitalization transaction. As noted in S&P's previous
statement on Feb. 22, 2010, VSL's liquidity adequacy at the 'B'
rating level -- and a significant factor underpinning the negative
outlook -- relied on a sharp rebound in cash holdings in April
2010 after receipt of proceeds from loan asset sales and the
company's anticipated return to the retail debenture market in
March 2010.
===============
P A K I S T A N
===============
PAKISTAN MOBILE: S&P Raises Corporate Credit Rating to 'B-'
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it raised the long-
term corporate credit rating on Pakistan's largest wireless
service provider Pakistan Mobile Communications Ltd. to 'B-' from
'CCC+'. The outlook is stable. At the same time, it raised the
issue rating on the company's senior unsecured notes to 'B-' from
'CCC+'. All ratings were removed from CreditWatch, where they had
been placed with positive implications on Dec. 22, 2009.
The rating upgrade reflects the improvement in parent Orascom
Telecom Holdings S.A.E.'s (B-/Stable/--) ability to support
Mobilink, following a successful US$800 million rights issue, and
S&P's view that Mobilink will now face limited pressure to support
its parent. The increased ability of Orascom Telecom to provide
support improves Mobilink's financial flexibility and helps
mitigate the risk from the company's weak liquidity and improves
its ability to meet the financial covenants in its senior secured
facilities. Mobilink is 100% privately owned by Orascom Telecom.
"The rating action also reflects the improvement in Mobilink's
operating performance because of an improvement in the
macroeconomic environment in Pakistan that has enabled the company
to increase subscribers, revenue, and profitability," said
Standard & Poor's credit analyst Yasmin Wirjawan. Mobilink's
profitability also benefited from Orascom Telecom's waiver of
management fees.
S&P believes parent Orascom Telecom would continue to provide
support to Mobilink, if required, considering Mobilink is Orascom
Telecom's second-largest operation, and contributed about 20% to
the parent's consolidated revenue and EBITDA in 2009.
Mobilink's cash flow protection measures improved in the year
ended Dec. 31, 2009, mainly due to an improvement in operating
performance and a reduction in debt.
S&P views Mobilink's liquidity as weak. The company had cash and
cash equivalents of US$107 million, and undrawn committed credit
facilities of US$65 million compared with debt due in one year,
including equipment payables, of about US$270 million. This could
result in material refinancing needs over the next 12 months.
However, the company does generate steady cash flows, and it has
financial flexibility through access to local financial markets
for its funding needs as well as support from Orascom Telecom. In
addition, S&P expects the company to effectively manage potential
pressure on its covenants.
The stable outlook reflects the improvement in Mobilink's business
and financial risk profile, compliance with financial covenants,
and continued support from parent Orascom Telecom. It also
factors in the improvement in Pakistan's macroeconomic situation.
=====================
P H I L I P P I N E S
=====================
BENGUET CORP: Ends Joint Venture with Balatoc Tribe
---------------------------------------------------
Benguet Corp. has terminated a partnership with tribal miners in
the Cordillera region amid conflicts, BusinessWorld Online
reports.
According to the report, Benguet said that on March 31, it "signed
a disengagement agreement with the Balatoc Tribe for the mutual
termination of their joint venture agreement in the Batong Buhay
Project."
The miner said tribal conflicts and land and engineering
constraints hindered the project, BusinessWorld relates.
Benguet Corporation (PSE:BC) -- http://www.benguetcorp.com/-- is
engaged in chromite and gold mining and production, exploration,
research and development, and water projects. The Company
explores for mines, produces and markets gold, refractory
chromite, nickel laterite ore, limestone and aggregates, and
through its subsidiaries, provides eco-tourism, engineering and
construction, reforestation, trucking and warehousing services,
sells industrial equipment and supplies, develops water resources
and real estate projects.
* * *
Jaime F. Del Rosario at Sycip Gorres Velayo and Co. raised
significant doubt on Benguet Corporation's ability to continue as
a going concern saying that the group has incurred cumulative
losses of PHP4.8 billion and PHP4.3 billion in 2008 and 2007,
respectively, which resulted to a capital deficiency of PHP1.6
billion and PHP1.3 billion as of December 31, 2008, and 2007,
respectively. The Group's current liabilities exceeded its
current assets by PHP3.8 billion and PHP3.1 billion as of Dec. 31,
2008 and 2007, respectively. In addition, the Group was unable to
pay its maturing bank loans and related interests of PHP3.6
billion and PHP3.1 billion as of December 31, 2008 and 2007,
respectively.
=================
S I N G A P O R E
=================
GEMS TV: U.S. Unit Seeks Bankruptcy Protection to Sell Assets
-------------------------------------------------------------
Phil Milford and Michael Bathon at Bloomberg News report that Gems
TV (USA) Ltd. has sought bankruptcy protection (Bankr. D. Del.
Case No. 10-11158) to sell its assets, after shutting down
operations last month.
Reno, Nevada-based Gems TV is a television retailer of gemstone
jewelry products. The Company listed about $120 million in debt
and about $51.2 million in assets.
"Since it began operations, the company has struggled to
maintain a sufficient level of profitability to sustain its
operations and service its debts," Gems TV President, Diane
Schneiderjohn, said in court documents. The Company's "troubles
were exacerbated this past year as nationwide economic conditions
resulted in decreased discretionary spending."
March 8 Announcement
Gems TV Holdings Ltd. announced March 8 that it will cease
operations in the U.S. Gems TV said that since its entry into the
U.S. in November 2006, it has struggled to achieve the necessary
operational and economic scale that would enable it to thrive in
that market. The Group's margins and profitability have been
under constant pressure from the extremely challenging and
unpredictable economic environment. Mr. Jason Choo, Chairman of
Gems TV said, "We are putting a stop to the operational cash drain
in the US which is clearly a disappointing outcome."
Gems TV also said March 8 that it has entered into a non-binding
term sheet to acquire roughly 37.8% shareholding interest in
Multimedia Commerce Group Inc. MMCG operates a shopping network
under the trade name "Jewelry Television(R)" and retails jewelry,
gemstones and related products via its television network and
internet sites. JTV(R) is a direct competitor of Gems TV in the
U.S. Upon completion of the Proposed Investment, both Gems TV and
JTV(R) will no longer be in competition with each other and
instead will work together to achieve better margins and greater
revenue.
About Gems TV
Gems TV is the leading television home shopping retailer of
gemstone jewelry with a mission to make genuine gemstone jewelry
affordable and available to everyone. It owns and operates
dedicated jewelry home shopping TV channels in the U.S., U.K. and
Japan, where our interactive "reverse auction" programs are
broadcasted to more than 50 million subscribers on a full time
equivalent basis in those markets. In addition, its genuine
gemstone jewelry is sold through internet and mobile platforms.
The products retail on its own Web sites -- www.GemsTV.com,
www.GemsTV.co.uk, www.GemsTV.jp, and www.Thaigem.com -- as well as
third-party Web sites such as eBay and Amazon.com. Its mobile
platform is accessible by consumers in Japan.
Gems TV was incorporated with limited liability in the Cayman
Islands on April 23, 2001, and listed on the Singapore Exchange
Main Board on November 10, 2006.
===========
T A I W A N
===========
AU OPTRONICS: To Acquire Toshiba Mobile's Subsidiary in Singapore
-----------------------------------------------------------------
AU Optronics Corp. said it has signed an MOU with Toshiba Mobile
Display Co., Ltd. to purchase 100% shares of AFPD Pte., Ltd., a
subsidiary of TMD in Singapore and a leading manufacturer of LCD
panels based on low temperature polysilicon (LTPS) technology.
Meanwhile, AUO and TMD intend to enter into certain agreements
relating to each party's intellectual property rights. This
acquisition, when it becomes effective, will hopefully help AUO to
gain business opportunities in high-end notebook and smart phone
market.
"AUO has devoted to developing LTPS technologies for a long time,"
AUO's CEO and President, Dr. L. J. Chen said, "With AFPD's fab,
capacity, talents and technologies, AUO's competence in high-end
display market is further strengthened. In addition, the
acquisition could help to place AUO in a special strategic
position in slim notebook and smart phone for the high-end markets
and new application markets such as tablet PC. We expect AUO to
soon provide value-added LTPS technologies to our customers and to
the end consumers."
Having demonstrated numerous achievements in LTPS technologies,
Toshiba Mobile Display has long held a leading position in the
high end notebook display sector. Currently, the world's latest
generation fab capable of producing LTPS is G4.5. The G4.5 fab of
AFPD has a capacity of approximately 45,000 sheets per month.
The acquisition of AFPD in Singapore will allow AUO to establish a
new operating manufacturing base in Asia in addition to Taiwan and
China. With its outstanding geographic location and logistics for
resources, the new site will hopefully be able to serve the high-
end display markets in South Asia, the Middle East, Australia and
New Zealand. In meeting the future trend for smart phones
equipped with LTPS technologies, AUO will not only be a step
faster but also be ready for better visibility and competitiveness
in the high-end cell phone market.
The proposed transaction is subject to the signing of definitive
agreements between AUO and TMD, as well as to any necessary
approvals.
About Toshiba Mobile Display
Toshiba Mobile Display Co., Ltd. -- http://www.tmdisplay.com/--
is positioned as one of the world leaders in thin film transistor
liquid crystal display panels (TFT-LCD) based on its advanced
technology. TMD has based its strategy on furthering the
development of leading-edge technology, such as precision mounting
and high- resolution, as well as employing the design and
production expertise. TMD offers TFT-LCD panels with high added-
value, especially in the field of small and medium sized displays.
TMD has strong positions for displays for mobile telephones, PDF,
car navigation systems, notebook PCs, and other displays. TMD
provides the most advanced display that has vivid, high-
resolution, thin and energy-saving features based on the low
temperature polysilicon technology. TMD generated JPY256 billion
in sales revenue in 2008 and houses a staff of 2,700 employees in
2009.
About AU Optronics
Based in Taiwan, AU Optronics Corp. -- http://www.auo.com/--
designs, develops, manufactures, assembles and markets flat panel
displays. The Company's principal products are thin-film
transistor-liquid crystal display (TFT-LCD) panels. Its panels
are used in computer products, such as notebook computers and
desktop monitors; consumer electronics products, such as mobile
phones, digital photo frames, digital still cameras, portable
navigation display, portable digital video disc players, LCD
televisions, and industrial displays. The Company sells its
panels primarily to original equipment manufacturing service
providers or brand customers. The Company groups its business
into three marketing channels: Information Technology Displays,
Consumer Products Displays and Television Displays. In March 2008
and June 2008, the Company acquired 45% and 26% of equity
interests in Verticil Electronic Corp. and Dazzo Technology
Corporation, respectively.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 14, 2009, Fitch Ratings upgraded AU Optronics Corporation's
Long-term foreign and local currency Issuer Default Ratings to
'BB-' from 'B+', and its National Long-term rating to 'BBB(twn)'
from 'BBB-(twn)'. The Outlook is revised to Stable from Negative.
CHINA BILLS: Fitch Affirms Support Rating Floor at 'B+'
-------------------------------------------------------
Fitch Ratings has affirmed Taiwan-based China Bills Finance
Corporation's Long-term foreign currency Issuer Default Rating at
'BBB' and Short-term foreign currency IDR at 'F3'. The agency has
also affirmed CBF's National Long-term rating at 'A+(twn)',
National Short-term rating at 'F1(twn)', Individual at 'C',
Support at '4', and Support Rating Floor at 'B+'. The Outlook on
the ratings remains Stable.
The ratings primarily reflect CBF's leading position in the
Taiwanese money markets, its good asset quality, adequate
capitalization, and liquidity. Major factors constraining CBF's
ratings include its limited business scope and associated funding
disadvantages. The company has undergone strategic changes since
2007 to improve its capital efficiency and rein in its overall
exposure to credit, market and liquidity risks. Its reduced
guarantee book has been migrating up the credit spectrum, while
its market risks have been lowered through a reduction in bond
holdings and the associated duration. In January 2010, CBF
recapitalized TWD3.36bn (15.5% of its net worth at end-2009)
corresponding to its lower risk profile. The reduction in its
balance sheet renders CBF less likely to be subject to a funding
squeeze in the unlikely event of system-wide liquidity stress
conditions.
CBF's underlying profitability improved in 2009, helped by
favorable gapping spreads on the back of the central bank's low
interest rate policy, higher risk premiums through fees, and a
strong stock market rally. The agency expects money-market
spreads to remain reasonable, and well-managed credit costs to
support CBF's net profit in 2010. Meanwhile, the quality of CBF's
guarantees remained sound, with no new problem accounts over 2003-
2009. Total problem exposures dropped substantially in 2009 (to
0.6% of guarantees at end-2009; 2.5% at end-2008) - a result of
further aggressive write-offs of legacy problem credits. CBF's
fixed-income investments were also of reasonable credit quality as
93% of fixed-income paper was investment-grade rated at end-2009.
Fitch notes the company has an adequate liquidity profile despite
its reliance on short-term wholesale funding. The bills and bond
repurchase agreements are backed by generally diversified and
good-quality fixed-income securities. The distribution of repo
counterparties is also reasonably diversified. CBF's core capital
ratio held steady at 13.67% at end-January 2010 after
recapitalization compared with a three-year (2007-2009) average of
13%. Management intends to keep its capital adequacy ratio (CAR)
above 13%, higher than the regulatory minimum requirement of 8%.
Established in 1978, CBF is Taiwan's third-largest bills finance
company by assets- TWD223bn including TWD68bn guarantee with a 21%
market share.
FAR EASTERN: Fitch Affirms Individual Rating at 'C/D'
-----------------------------------------------------
Fitch Ratings has affirmed Taiwan's Far Eastern International
Bank's Long-term foreign currency Issuer Default Rating at 'BBB-',
Short-term foreign currency IDR at 'F3', National Long-term rating
at 'A(twn)', National Short-term rating at 'F1(twn)', Individual
rating at 'C/D', Support rating at '4', Support Rating Floor at
'B+', and Subordinated debt rating at 'A-(twn)'. The Outlook
remains Negative.
The Negative Outlook reflects Fitch's concerns on the
sustainability of FEIB's profit level, despite a turnaround in
profit in 2009 (unaudited ROE of 6.2%) and Q110 (unaudited
annualised ROE of 12.2%) after three consecutive years of losses.
FEIB's short-to-medium term internal capital generation may be
tempered by the integration costs associated with its acquisition
of the 'good bank' portion of the failed Chinfon Commercial Bank,
as well as potentially higher provisioning for some of the bank's
restructured loans to meet a more stringent loan-loss reserve
requirement. Fitch may revise the Outlook to Stable if FEIB
demonstrates sustained improvement in profitability and asset
quality.
Nonetheless, the agency has witnessed marked improvement in the
bank's asset quality and risk management over the past three years
(2007-2009). Its NPLs declined to 1.1% (of gross loans) at end-
February 2010 (end-2008: 2.5%) while loan loss reserves-to-NPL
rose to 91.2% at end-February 2010 from 58.1% at end-2008.
In addition, the bank has remained reasonably well-capitalised,
and has maintained a good liquidity profile through the global
financial crisis. FEIB's Tier 1 and total capital adequacy ratios
stood at 8.5% and 11.7%, respectively, at end-2009. The bank has
a low loan-to-deposit ratio at 67.3%, and rather high liquidity
reserve ratio at 34% at end-2009, highlighting the bank's sound
liquidity standing.
Founded in 1992, FEIB is a medium-sized private bank in Taiwan
with a deposits market share of 1.1% at end-2009. It is a member
of Far Eastern Group, one of the largest conglomerates in Taiwan.
FEG owns several leading industrial and service companies in
various sectors. FEG is the bank's controlling shareholder with a
stake of about 60% and dominates the bank's board of directors
with seven of the nine seats.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Apr. 20-22, 2010
TURNAROUND MANAGEMENT ASSOCIATION
Sheraton New York Hotel and Towers, New York City
Contact: http://www.turnaround.org/
Apr. 29, 2010
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts - East
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 29-May 2, 2010
THE COMMERICAL LAW LEAGUE OF AMERICA
Midwestern Meeting & National Convention
Westin Michigan Avenue, Chicago, Ill.
Contact: 1-312-781-2000 or http://www.clla.org/
May 21, 2010
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts - NYC
Alexander Hamilton Custom House, SDNY, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
May 24, 2010
AMERICAN BANKRUPTCY INSTITUTE
New York City Bankruptcy Conference
New York Marriott Marquis, New York, NY
Contact: 1-703-739-0800; http://www.abiworld.org/
May 11-14, 2010
AMERICAN BANKRUPTCY INSTITUTE
Litigation Skills Symposium
Tulane University, New Orleans, La.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Mich.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Ritz-Carlton Amelia Island, Amelia, Fla.
Contact: http://www.abiworld.org/
Aug. 3, 2010
AMERICAN BANKRUPTCY INSTITUTE
Atlanta Consumer Bankruptcy Skills Training
Georgia State Bar Building, Atlanta, Ga.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 11-14, 2010
AMERICAN BANKRUPTCY INSTITUTE
Hawai.i Bankruptcy Workshop
The Fairmont Orchid, Big Island, Hawaii
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 14, 2010
AMERICAN BANKRUPTCY INSTITUTE
ABI/NYIC Golf and Tennis Fundraiser
Maplewood Golf Club, Maplewood, N.J.
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 20, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
Complex Financial Restructuring Program
Fordham Law School, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
Sept. 23-25, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Four Seasons Las Vegas, Las Vegas, Nev.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 1, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
ABI/UMKC Midwestern Bankruptcy Institute
Kansas City Marriott Downtown, Kansas City, Kan.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 6-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Oct. 11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Chicago Consumer Bankruptcy Conference
Standard Club, Chicago, Ill.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 15, 2010
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Hilton New Orleans Riverside, New Orleans, La.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 29, 2010 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
The Savoy, London, England
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. __, 2010
AMERICAN BANKRUPTCY INSTITUTE
Delaware Views from the Bench and Bankruptcy Bar
Hotel du Pont, Wilmington, Del.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Detroit Consumer Bankruptcy Conference
Hyatt Regency Dearborn, Dearborn, Mich.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 9-11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Camelback Inn, a JW Marriott Resort & Spa,
Scottsdale, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
Jan. 20-21, 2011
AMERICAN BANKRUPTCY INSTITUTE
Rocky Mountain Bankruptcy Conference
Westin Tabor Center, Denver, Colo.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Mich.
Contact: http://www.abiworld.org/
July 21-24, 2011
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 4-6, 2011 (tentative)
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Tampa Convention Center, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Valerie C. Udtuhan, Marites O. Claro,
Rousel Elaine 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.
*** End of Transmission ***