/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100510.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 Monday, May 10, 2010, Vol. 13, No. 090 Headlines C H I N A AGILE PROPERTY: To Buy Back US$400 Million 9% Senior Notes COUNTRY GARDEN: Contracted Sales Surge 180% to RMB3-Bil. in April H O N G K O N G AUTRON MAURITIUS: Court Enters Wind-Up Order CSS WORLDWIDE: Court Enters Wind-Up Order DICKSON CONSTRUCTION: Robert Armor Morris Steps Down as Liquidator ETERNITY DESIGN: Court Enters Wind-Up Order FORMAX INDUSTRIAL: Lau and Yuen Appointed as Liquidators FORTIS INVESTMENT: Commences Wind-Up Proceedings FORTUNE MIND: Lau and Yuen Appointed as Liquidators GOOD SUCCESS: Creditors' Proofs of Debt Due May 24 HIGH CARGO: Court to Hear Wind-Up Petition on June 23 HK JIN: Wong and Tsui Step Down as Liquidators HIP SHING: Nedderman and Yan Appointed as Liquidators IMAGE PRODUCTION: Creditors and Contributories to Meet on May 27 KEEP CLEAN: Court to Hear Wind-Up Petition on June 2 KING WING: Li and Tsang Appointed as Liquidators LEADSON GARMENT: Li and Tsang Appointed as Liquidators MAN WAH: Court Enters Wind-Up Order MOKKERHATIN ENGINEERING: Court to Hear Wind-Up Petition on June 9 ROSEJAY COMPANY: Members' Meeting Set for June 7 TITWORTH COMPANY: Members' Meeting Set for June 7 TRADE VENTURE: Court to Hear Wind-Up Petition on May 19 UNIVERSAL SHEEN: Creditors Get 100% Recovery on Claims YIP WO: Court to Hear Wind-Up Petition on June 9 I N D I A AIR INDIA: AI Express Cabin Crews Threaten Indefinite Strike AIR INDIA: Taps Simat Helliesen as Foreign Consultant AKC STEEL: CRISIL Reaffirms 'BB+' Rating on INR100MM Bank Debts AKRUTI JAY: CARE Assigns 'CARE BB' Rating on INR50cr LT Loan BEEKAY STEEL: CRISIL Reaffirms 'BB+' Ratings on INR210M Term Loan EASTERN ALLOYS: CRISIL Reaffirms 'D' Ratings on Various Bank Debts GOA ISPAT: CRISIL Assigns 'BB-' Rating on INR21.40MM Term Loan MRG PROMOTERS: CRISIL Rates INR350MM Proposed LT Loan at 'BB' PACIFICA CHENNAI: CRISIL Reaffirms 'B+' Rating On INR790MM Loan RENFRO INDIA: Accumulated Losses Cue CRISIL 'B+' Ratings SHARMANJI YARNS: Fitch Assigns 'BB' National Long-Term Rating SARJU IMPEX: Fitch Assigns National Long-Term Rating at 'B' VARUN INDUSTRIES: CARE Assigns 'CARE BB+' Rating on INR415cr Loan I N D O N E S I A ARPENI PRATAMA: S&P Downgrades Corporate Credit Rating to 'SD' J A P A N KANAGAWA CLINIC: Files For Bankruptcy in Tokyo District Court TOSHIBA CORP: Posts JPY19.7-Bil. Net Loss in FY2009 N E W Z E A L A N D CRAFAR FARMS: OIO Investigates Four Crafar Farms Purchases CRAFAR FARMS: Owner in Talks With Overseas Buyer SOUTH CANTERBURY: S&P Retains CreditWatch Negative on Ratings STRATEGIC FINANCE: Receivers to Run Sale Process on Loan Book STRATEGIC FINANCE: Regulator Appoints Corporate Forensic Examiner T A I W A N ASUSTEK COMPUTER: Sees Q2 Shipments of Notebook PC Rise by 10% AU OPTRONICS: Reports April 2010 Consolidated Revenue - - - - - ========= C H I N A ========= AGILE PROPERTY: To Buy Back US$400 Million 9% Senior Notes ---------------------------------------------------------- Lorraine Luk at Dow Jones Newswires reports that Agile Property Holdings Ltd. will buy back the entire US$400 million worth of outstanding 9% senior notes due 2013 on June 7. According to Dow Jones, the company said it will buy back the notes at a price equal to 100% of the principal amount of the notes plus the applicable premium and the accrued and unpaid interest. Agile said it will finance the buyback with proceeds from the issuance of 8.875% senior notes due 2017 and internal resources. About Agile Property Agile Property Holdings Limited is one of the major property developers in China, targeting the mid-to-high end segment. It has a land bank with around 28.4 million sqm of gross floor area. * * * As reported in the Troubled Company Reporter-Asia Pacific on Oct. 29, 2009, Moody's Investors Service assigned a "Ba3" rating to Agile Property Holdings Limited's proposed US$ senior unsecured notes. At the same time, Moody's has affirmed Agile's Ba3 corporate family rating. The ratings outlook is positive. COUNTRY GARDEN: Contracted Sales Surge 180% to RMB3-Bil. in April ----------------------------------------------------------------- Country Garden Holdings Co Ltd said its contracted sales surged 180% year-on-year to RMB3 billion in April, according to China Knowledge. The report relates the developer said in a statement filed with the Hong Kong Stock Exchange that the April contracted sales were 20% more than the RMB2.5 billion it recorded in March. China Knowledge says Country Garden sold 550,000 square meters of properties in April this year, 129% more than in the same month of 2009. Country Garden Holdings Company Limited (HKG:2007) is an integrated property developer in the People's Republic of China. The Company's business comprises construction, fitting, project development, property management, as well as hotel development and management. Country Garden offers various products include large- scale residential projects, such as townhouses, apartment buildings, as well as car-parks and retail shops. The Company also develops and manages hotels. It also develops hotels, which are independent of property developments. As of December 31, 2008, Country Garden had operations in selected locations beyond Guangdong Province, including Hunan Province, Jiangsu Province, Hubei Province, Liaoning Province, Anhui Province, Heilongjiang Province, Inner Mongolia Autonomous Region and Chongqing Municipality. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 12, 2010, Standard & Poor's Ratings Services said that it had affirmed its 'BB' long-term corporate credit rating on China- based property developer Country Garden Holdings Co. Ltd. The outlook was revised to negative from stable. At the same time, Standard & Poor's assigned an issue credit rating of 'BB-' to the proposed seven-year fixed-rate senior unsecured notes issued by Country Garden that will be used to conduct the repurchasing. The final rating on the notes is subject to finalization of documentation. ================ H O N G K O N G ================ AUTRON MAURITIUS: Court Enters Wind-Up Order -------------------------------------------- The High Court of Hong Kong entered an order on April 21, 2010, to wind up the operations of Autron Mauritius Corporation. The Official Receiver is E T O'Connell. CSS WORLDWIDE: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on April 21, 2010, to wind up the operations of CSS Worldwide Limited. The Official Receiver is E T O'Connell. DICKSON CONSTRUCTION: Robert Armor Morris Steps Down as Liquidator ------------------------------------------------------------------ Robert Armor Morris stepped down as liquidator of Dickson Construction (Maintenance) Limited on April 19, 2010. ETERNITY DESIGN: Court Enters Wind-Up Order ------------------------------------------- The High Court of Hong Kong entered an order on April 21, 2010, to wind up the operations of Eternity Design & Decoration Co Limited. The Official Receiver is E T O'Connell. FORMAX INDUSTRIAL: Lau and Yuen Appointed as Liquidators -------------------------------------------------------- Lau Wu Kwai King Lauren and Yuen Tsz Chun Frank of Messrs. KLC Kennic Lui & Co. on March 26, 2010, were appointed as liquidators of Formax Industrial (Hong Kong) Limited. The liquidators may be reached at: Lau Wu Kwai King Lauren Yuen Tsz Chun Frank 5th Floor, Ho Lee Commercial Building 38-44 D'Aquilar Street Central, Hong Kong FORTIS INVESTMENT: Commences Wind-Up Proceedings ------------------------------------------------ Members of Fortis Investment Management Limited, on April 26, 2010, passed a resolution to voluntarily wind-up the company's operations. The company's liquidator is: Ng Kit Ying Zelinda Michel Bots 31/F., The Center 99 Queen's Road Central, Hong Kong FORTUNE MIND: Lau and Yuen Appointed as Liquidators --------------------------------------------------- Mrs. Lau Wu Kwai King Lauren and Mr Yuen Tsz said in notice dated April 30, 2010, they have been appointed by the High Court of Hong Kong as liquidators of Fortune Mind Transportation Co. Limited. The liquidators may be reached at: Mrs Lau Wu Kwai King Lauren Mr Yuen Tsz 5/F, Ho Lee Commercial Bldg 38-44 D'Aguilar Street Central, Hong Kong GOOD SUCCESS: Creditors' Proofs of Debt Due May 24 -------------------------------------------------- Creditors of Good Success Catering Group Limited, which is in compulsory liquidation, are required to file their proofs of debt by May 24, 2010, to be included in the company's dividend distribution. The company's liquidators are: Stephen Briscoe Nicholas Timothy Cornforth Hill 602 The Chinese Bank Building 61-65 Des Voeux Road Central, Hong Kong HIGH CARGO: Court to Hear Wind-Up Petition on June 23 ----------------------------------------------------- A petition to wind up the operations of High Cargo Logistics Warehouse Limited will be heard before the High Court of Hong Kong on June 23, 2010, at 9:30 a.m. Ma Yu Hou filed the petition against the company on April 19, 2010. HK JIN: Wong and Tsui Step Down as Liquidators ---------------------------------------------- Wong Sun Keung and Tsui Mei Yuk Janice stepped down as liquidators of Hong Kong Jin Sheng Industrial Group Limited on March 23, 2010. HIP SHING: Nedderman and Yan Appointed as Liquidators ----------------------------------------------------- Anthony Nedderman and Yan Miu Ping said in notice dated April 30, 2010, they have been appointed by the High Court of Hong Kong as liquidators of Hip Shing Materials Limited. The High Court entered an order on November 16, 2005, to wind up the operations of Hip Shing Material Limited. The liquidators may be reached at: Anthony Nedderman Yan Miu Ping c/o Messrs. Tony Nedderman & Co. Ltd 11/F., China Hong Kong Tower 8 Hennessy Road Hong Kong IMAGE PRODUCTION: Creditors and Contributories to Meet on May 27 ---------------------------------------------------------------- Creditors and contributories of Image Production Limited will hold their first meetings on May 27, 2010, at 3:00 p.m., and 3:30 p.m., respectively at 60th Floor, One Island East, 18 Westlands Road, Island East, in Hong Kong. At the meeting, David Yen Ching Wai, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KEEP CLEAN: Court to Hear Wind-Up Petition on June 2 ---------------------------------------------------- A petition to wind up the operations of Keep Clean Washing Limited will be heard before the High Court of Hong Kong on June 2, 2010, at 9:30 a.m. Siu Yin Tung filed the petition against the company on March 31, 2010. KING WING: Li and Tsang Appointed as Liquidators ------------------------------------------------ Li Man Wai and Tsang Lai Fun said in notice dated April 30, 2010, they have been appointed by the High Court of Hong Kong as liquidators of King Wing (Hong Kong) Investment Limited. The High Court entered an order on December 30, 2008, to wind up the operations of King Wing (Hong Kong) Investment Limited. The liquidators may be reached at: Li Man Wai Tsang Lai Fun Room 1001, 10th Floor Tai Yau Building 181 Johnston Road Wanchai, Hong Kong LEADSON GARMENT: Li and Tsang Appointed as Liquidators ------------------------------------------------------ Li Man Wai and Tsang Lai Fun of Raymond Li & Co CPA on April 16, 2010, were appointed as liquidators of Leadson Garment Factory Limited. The liquidators may be reached at: Li Man Wai Tsang Lai Fun c/o Raymond Li & Co., CPA Room 1001, 10th Floor Tai Yau Building 181 Johnston Road Wanchai, Hong Kong MAN WAH: Court Enters Wind-Up Order ----------------------------------- The High Court of Hong Kong entered an order on April 21, 2010, to wind up the operations of Man Wah (Hong Kong-China) Transport Limited. The Official Receiver is E T O'Connell. MOKKERHATIN ENGINEERING: Court to Hear Wind-Up Petition on June 9 ----------------------------------------------------------------- A petition to wind up the operations of Mokkerhatin Engineering Limited will be heard before the High Court of Hong Kong on June 9, 2010, at 9:30 a.m. Chan Fat Kai filed the petition against the company on April 14, 2010. ROSEJAY COMPANY: Members' Meeting Set for June 7 ------------------------------------------------ Members of Rosejay Company Limited will hold their meeting on June 7, 2010, at 10:00 a.m., at the 27/F Alexandra House, 18 Chater Road, Central, in Hong Kong. At the meeting, Patrick Cowley, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. TITWORTH COMPANY: Members' Meeting Set for June 7 ------------------------------------------------- Members of Titworth Company Limited will hold their meeting on June 7, 2010, at 10:30 a.m., at the 27/F Alexandra House, 18 Chater Road, Central, in Hong Kong. At the meeting, Patrick Cowley, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. TRADE VENTURE: Court to Hear Wind-Up Petition on May 19 ------------------------------------------------------- A petition to wind up the operations of Trade Venture International Limited will be heard before the High Court of Hong Kong on May 19, 2010, at 9:30 a.m. Popular Limited filed the petition against the company on March 12, 2010. The Petitioner's solicitors are: Messrs. Chan, Wong & Lam Suites 3009-12, 30th Floor Shui On Centre 6-8 Harbour Road Hong Kong SAR UNIVERSAL SHEEN: Creditors Get 100% Recovery on Claims ------------------------------------------------------ Universal Sheen Group Limited, which is in compulsory liquidation, paid the full and final dividend to its creditors on or after April 30, 2010. The company paid 100% for ordinary claims. The company's liquidators are: Lau Siu Hung Liang Yang Keng Room 2009-10, 20/F Nan Fung Tower 173 Des Voeux Road Central, Hong Kong YIP WO: Court to Hear Wind-Up Petition on June 9 ------------------------------------------------ A petition to wind up the operations of Yip Wo Transportation Limited will be heard before the High Court of Hong Kong on June 9, 2010, at 9:30 a.m. UPS Parcel Delivery Service Limited filed the petition against the company on April 1, 2010. The Petitioner's solicitors are: Wilkinson & Grist 6th Floor, Prince's Building Chater Road Central, Hong Kong ========= I N D I A ========= AIR INDIA: AI Express Cabin Crews Threaten Indefinite Strike ------------------------------------------------------------ About 400 cabin crew members of Air India's low cost subsidiary Air India Express have threatened to go on an indefinite strike from May 10 due to the company's decision not to renew their contracts, Hindustan Times reported on Friday. The Aviation Industry Employees Guild (AIEG), the union representing the crew, said the airline plans to outsource cabin crew services to a private agency. Air India passengers bound to South East Asia and the Gulf could be grounded if Air India Express crew goes on strike, the report notes. As reported in the Troubled Company Reporter-Asia Pacific on June 10, 2009, the National Aviation Co. of India Ltd was seeking INR14,000 crore in equity infusion, soft loans and grants to cope up with mounting losses. NACIL is the holding company formed after the merger of erstwhile Indian Airlines and Air India in 2007. The TCR-AP, citing the Hindustan Times, reported on June 19, 2009, that Air India has been bleeding cash due to excess capacity, lower yield, a drop in passenger numbers, an increase in fuel prices and the effects of the global slowdown. The carrier incurred net losses of INR2,226.16 crore in 2007-08 and INR5,548 crore in 2008-09. In December, the Air India board decided to initiate a series of major steps to cut costs and enhance savings. The carrier is focusing on cutting costs by INR1,500 crore and increasing revenues by INR1,200 crore as per its turnaround plan, according to the Business Standard. The airline's turnaround plan has been broadly divided into 0-9 months, 9-18 months and 18-36 months, and has been segregated under operational efficiency, product improvement, organization building and financial restructuring, the Business Standard said. About Air India Air India -- http://www.airindia.com/-- transports passengers throughout India and to more than 40 destinations throughout the world. Affiliate Air India Express operates as a low-fare carrier, mainly between India and destinations in the Middle East, and Air India Cargo provides freight transportation. The government of India has merged Air India with another state- controlled carrier, Indian Airlines, which has focused on domestic routes. The combined airline, part of a new holding company called National Aviation Company of India, uses the Air India brand. The new Air India and its affiliates have a fleet of more than 110 aircraft altogether. AIR INDIA: Taps Simat Helliesen as Foreign Consultant ----------------------------------------------------- Press Trust of India reports that Air India has appointed a foreign consultant to help plot its flight network. "National Aviation Company of India Limited has appointed Simat Helliesen and Eichner Inc. as Airline Management Solution Provider at a contract of $549,000 through a tender selection process," the news agency cited Civil Aviation Minister Praful Patel's written reply. Mr. Patel said SH&E, a U.S.-based aviation consultant, has been contracted to develop network strategy, schedules and aircraft rotation for NACIL, including the low cost carriers, PTI relates. Mr. Patel also said that NACIL is in the process of operationalizing three separate subsidiaries covering engineering, ground handling and cargo. As reported in the Troubled Company Reporter-Asia Pacific on June 10, 2009, the National Aviation Co. of India Ltd was seeking INR14,000 crore in equity infusion, soft loans and grants to cope up with mounting losses. NACIL is the holding company formed after the merger of erstwhile Indian Airlines and Air India in 2007. The TCR-AP, citing the Hindustan Times, reported on June 19, 2009, that Air India has been bleeding cash due to excess capacity, lower yield, a drop in passenger numbers, an increase in fuel prices and the effects of the global slowdown. The carrier incurred net losses of INR2,226.16 crore in 2007-08 and INR5,548 crore in 2008-09. In December, the Air India board decided to initiate a series of major steps to cut costs and enhance savings. The carrier is focusing on cutting costs by INR1,500 crore and increasing revenues by INR1,200 crore as per its turnaround plan, according to the Business Standard. The airline's turnaround plan has been broadly divided into 0-9 months, 9-18 months and 18-36 months, and has been segregated under operational efficiency, product improvement, organization building and financial restructuring, the Business Standard said. About Air India Air India -- http://www.airindia.com/-- transports passengers throughout India and to more than 40 destinations throughout the world. Affiliate Air India Express operates as a low-fare carrier, mainly between India and destinations in the Middle East, and Air India Cargo provides freight transportation. The government of India has merged Air India with another state- controlled carrier, Indian Airlines, which has focused on domestic routes. The combined airline, part of a new holding company called National Aviation Company of India, uses the Air India brand. The new Air India and its affiliates have a fleet of more than 110 aircraft altogether. AKC STEEL: CRISIL Reaffirms 'BB+' Rating on INR100MM Bank Debts --------------------------------------------------------------- CRISIL's ratings on the bank facilities of AKC Steel Industries Ltd, a part of the Beekay group, continue to reflect the Beekay group's exposure to risks associated with large capital expenditure (capex) plans, cyclicality in the steel business, and working capital-intensive operations. These weaknesses are partially offset by the Beekay group's moderate business and financial risk profiles, marked by moderate net worth, moderate debt protection metrics but constrained by high gearing. Facilities Ratings ---------- ------- INR100 Million Cash Credit Limits BB+/Stable (Reaffirmed) INR50 Million Proposed Short-Term P4+ (Reaffirmed) Bank Loan Facility For arriving at its ratings, CRISIL has combined the business and financial risk profiles of AKC and Beekay Steel Industries Ltd, as both entities, together referred to as the Beekay group, share a common management, have strong operational linkages and inter- company transactions, and sell products under the same brand, Beekay. Outlook: Stable CRISIL believes that the Beekay group will maintain its credit risk profile over the medium term on the back of healthy cash accruals and its moderate market position. The outlook may be revised to 'Positive' if there is a sustained improvement in the group's financial risk profile driven by improvement in its gearing and debt protection metrics. Conversely, the outlook may be revised to 'Negative' in case the Beekay group's net cash accruals deteriorate or it undertakes a larger-than-expected debt- funded capex programme, or increases its exposure to other group companies. About the Group BSIL is the flagship company of the Beekay group. It was promoted by Mr. B L Bansal in 1957 as a partnership firm and later in 1984, it was reconstituted as a public limited company. BSIL, which has its facilities at Visakhapatnam (Andhra Pradesh) and Jamshedpur (West Bengal), manufactures made-to-order, high-quality steel bars to meet demands of the automobile, engineering, railways, and infrastructure industries. The company is one of the largest secondary steel manufacturers in eastern India. In 2005-06 (refers to financial year, April 1 to March 31), two group companies, Radice Ispat (India) Ltd and Venkatesh Steel & Alloys Pvt Ltd, with manufacturing facilities at Visakhapatnam (Andhra Pradesh), were amalgamated with BSIL. AKC, incorporated in 1957, was taken over by the Beekay group in 1998. The company specializes in manufacturing all types of long products of mild steel and other value-added steel products which are used in the automobile and other engineering industries. It has its manufacturing facilities at Visakhapatnam (Andhra Pradesh), For 2008-09, the Beekay group reported a profit after tax (PAT) of INR38 million on net sales of INR3.11 billion, against a PAT of INR60 million on net sales of INR3.16 billion for the previous year. AKRUTI JAY: CARE Assigns 'CARE BB' Rating on INR50cr LT Loan ------------------------------------------------------------ CARE has assigned a 'CARE BB' rating to the Long-term Bank Facilities of Akruti Jay Developers aggregating INR50.00 crore. This rating is applicable to facilities having tenure of more than one year. Facilities with this rating are considered to offer inadequate safety for timely servicing of debt obligations. Such facilities carry high credit risk. CARE assigns '+' or '-' signs to be shown after the assigned rating (wherever necessary) to indicate the relative position within the band covered by the rating symbol. The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo a change in case of withdrawal of capital or of the unsecured loans brought in by the partners in addition to changes in the financial performance and other relevant factors. Rating Rationale The rating is constrained by the constitution of an entity as a partnership firm, considerable project execution risk on account of nascent stage of the project, withdrawal of capital by erstwhile partners, bunching of repayments in the medium term and relatively interior location of the project. However, the ratings takes cognisance of long experience of AJD's main partners viz Ackruti City Limited in real estate business with good project execution capability, its status as a well- entrenched player in Mumbai, good marketing structure, satisfactory project marketability as evident from the present booking status despite nascent stage of the project and the recent downturn in the sector. The rating also draws comfort from it being a residential project at attractive price points and tie-up of the entire debt for phase I of the project. Timely execution of the project and ability to market the balance portion of the project at the envisaged sales realisation remain the key rating sensitivities. Akruti Jay Developers is a partnership firm initially incorporated as Jairaj Associates (JA) in July 2005, by Mr. Jayant Shah and Mr. Malav Jayant Shah. The firm had acquired development rights in respect of 60 acres of land with potential of developable area of 3.3 million square feet (msf) at Kondhwa, (Pune). As on September 2009, ACL, Hazel Erectors Private Limited and Mr. Vyomesh Shah (Managing Director, ACL) are the partners in AJD. ACL has 67% profit sharing in AJD and balance is with HEPL and Mr. Vyomesh shah. At present, AJD is engaged in developing a residential real estate project at Kondhwa, which is estimated to cost INR170.60 crore, to be financed with a debt to equity ratio of 1.48x (excluding advances from customers, which form 51% of the total project cost). AJD had received bookings for 358 out of 500 residential units launched by it with the booking advance of INR5.40 crore as on September 30, 2009. BEEKAY STEEL: CRISIL Reaffirms 'BB+' Ratings on INR210M Term Loan ----------------------------------------------------------------- CRISIL has reclassified its rating on the short-term bank facilities of Beekay Steel Industries Ltd, a part of Beekay group, as 'P4+' from the earlier 'P4', and reaffirmed its rating on the company's long-term bank facilities at 'BB+/Stable'. Facilities Ratings ---------- ------- INR840 Million Cash Credit Limits@ BB+/Stable (Reaffirmed) INR210 Million Term Loan BB+/Stable (Reaffirmed) INR40 Million Letter of Credit P4+ (Reclassified from backed by Bills Discounting 'P4') INR30 Million Bank Guarantee P4+ (Reclassified from 'P4') INR80 Million Letter of Credit P4+ (Reclassified from 'P4') INR65 Million Proposed Short-Term P4+ (Reclassified from Bank Loan Facility 'P4') @Includes proposed limit of INR185 Million. The ratings continue to reflect the Beekay group's exposure to risks associated with large capital expenditure (capex) plans, cyclicality in the steel business, and working-capital-intensive operations. These weaknesses are partially offset by the Beekay group's moderate business and financial risk profiles, marked by moderate net worth, moderate debt protection metrics but constrained by high gearing. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of BSIL and AKC Steel Industries Ltd (AKC), as both entities, together referred to as the Beekay group, share a common management, have strong operational linkages and inter-company transactions, and sell products under the same brand, Beekay. Outlook: Stable CRISIL believes that the Beekay group will maintain its credit risk profile over the medium term on the back of healthy cash accruals and its moderate market position. The outlook may be revised to 'Positive' if there is a sustained improvement in the group's financial risk profile driven by improvement in its gearing and debt protection metrics. Conversely, the outlook may be revised to 'Negative' in case the Beekay group's net cash accruals deteriorate or it undertakes a larger-than-expected debt- funded capex programme, or increases its exposure to other group companies. About the Group BSIL is the flagship company of the Beekay group. It was promoted by Mr. B L Bansal in 1957 as a partnership firm and later in 1984, it was reconstituted as a public limited company. BSIL, which has its facilities at Visakhapatnam (Andhra Pradesh) and Jamshedpur (West Bengal), manufactures made-to-order, high-quality steel bars to meet demands of the automobile, engineering, railways, and infrastructure industries. The company is one of the largest secondary steel manufacturers in eastern India. In 2005-06 (refers to financial year, April 1 to March 31), two group companies, Radice Ispat (India) Ltd and Venkatesh Steel & Alloys Pvt Ltd, with manufacturing facilities at Visakhapatnam (Andhra Pradesh), were amalgamated with BSIL. AKC, incorporated in 1957, was taken over by the Beekay group in 1998. The company specializes in manufacturing all types of long products of mild steel and other value-added steel products which are used in the automobile and other engineering industries. It has its manufacturing facilities at Visakhapatnam (Andhra Pradesh), For 2008-09, the Beekay group reported a profit after tax (PAT) of INR38 million on net sales of INR3.11 billion, against a PAT of INR60 million on net sales of INR3.16 billion for the previous year. EASTERN ALLOYS: CRISIL Reaffirms 'D' Ratings on Various Bank Debts ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Eastern Alloys Pvt Ltd continue to reflect Eastern Alloys' delay in servicing its term loan obligations; the delay has been caused by weak liquidity. Facilities Ratings ---------- ------- INR16.00 Million Term Loan D (Reaffirmed) INR70.00 Million Cash Credit D (Reaffirmed) INR2.00 Million Proposed Cash Credit D (Reaffirmed) INR10.00 Million Standby Line of Credit D (Reaffirmed) INR0.40 Million Bank Guarantee P5 (Reaffirmed) INR1.60 Million Letter of Credit P5 (Reaffirmed) Promoted by Mr. M L Agarwal, who has been in the castings business since 1983, Eastern Alloys manufactures casted products, especially railway inserts (used to position cement sleepers between railway lines) and metal insulator caps (used in power grid insulators). Its customers include Bharat Heavy Electricals Ltd and Aditya Birla Insulators Ltd. Eastern Alloys has a melting capacity of around 17,000 tonnes per annum. For 2008-09 (refers to financial year, April 1 to March 31), Eastern Alloys reported a net loss of INR2 million on net sales of INR320 million, against a profit after tax (PAT) of INR17.5 million on net sales of INR319.4 million for the previous year. GOA ISPAT: CRISIL Assigns 'BB-' Rating on INR21.40MM Term Loan -------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable/P4+' ratings to Goa Ispat Ltd's bank facilities. Facilities Ratings ---------- ------- INR75.00 Million Cash Credit BB-/Stable (Assigned) INR21.40 Million Term Loan BB-/Stable (Assigned) INR50.00 Million Letter of Credit P4+ (Assigned) INR30.00 Million Bank Guarantee P4+ (Assigned) The ratings reflect GIL's very low profitability, as a result of the intense competition it faces in the thermo-mechanically treated (TMT) steel bar industry, and its vulnerability to downturns in the end-user industry and to volatility in steel prices. These rating weaknesses are partially offset by GIL's healthy financial risk profile, marked by low gearing and comfortable debt protection metrics, and the benefits that the company derives from the extensive experience of its promoters in the steel industry and its semi-integrated operations. Outlook: Stable CRISIL believes that GIL will maintain its healthy financial risk profile and continue to benefit from its semi-integrated operations, over the medium term. The outlook may be revised to 'Positive' in case GIL's liquidity improves, most likely because of improvement in profitability and cash accruals. Conversely, the outlook may be revised to 'Negative' if GIL's financial risk profile deteriorates, most likely because of large debt-funded capital expenditure, or reduced cash accruals as a result of pressure on margins driven by volatility in steel prices. About Goa Ispat GIL manufactures TMT steel bars, mild steel (MS) ingots, and structural steel products such as angles and channels. The company's manufacturing units at Goa have the capacity to manufacture 30,000 tonnes per annum (tpa) of ingots and 60,000 tpa of TMT bars and structural steel products. GIL manufactures TMT bars of diameters ranging from 8 millimetres (mm) to 32 mm for sale under its Amba Shakti brand. The company is a part of the Amba group, which includes other steel-manufacturing entities such as Amba Shakti Ispat Ltd (rated 'BB-/Negative/P4' by CRISIL), Amba Metal ('BB-/Negative/P4'), and Amba Steel. GIL reported a profit after tax (PAT) of INR13.2 million on net sales of INR1731.2 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR9.8 million on net sales of INR1232.8 million for 2008-09. MRG PROMOTERS: CRISIL Rates INR350MM Proposed LT Loan at 'BB' ------------------------------------------------------------- CRISIL has assigned its 'BB/Stable' rating to MRG Promoters Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR350.0 Million Proposed BB/Stable (Assigned) Long-Term Bank Loan Facility The rating reflects MPPL's exposure to risks related to uncertainty in demand for its Park Inn project in Kundli (Haryana), the start-up nature of its operations, high dependence on customer advances to fund real estate projects, and the cyclicality and intense competition in the hotel industry. These rating weaknesses are partially offset by the benefits that MPPL derives from the advanced stage of completion of its construction activities for its project, and the expected cash flows from shops already sold. Outlook: Stable CRISIL expects MPPL's financial risk profile to remain constrained over the medium term because of the start-up nature of its operations, and high dependence on customer advances for completion of under-construction projects. The outlook may be revised to 'Positive' if MPPL reports higher-than-expected cash accruals on the back of a fast ramp up in operating income and profitability. Conversely, the outlook may be revised to 'Negative' if the project faces time and cost overruns, or there is a delay in ramp up of sales and profitability, thereby adversely affecting MPPL's liquidity. About MRG Promoters MRG Promoters Pvt Ltd was acquired in May 2007 from its erstwhile promoters, Mr. Bharat Anand and Mr. Rakesh Ahuja, by AMR Infrastructures Ltd in order to develop a shopping mall cum three- star service apartments project named Park Inn at Kundli. MPPL was allocated 7034 square metres of land at Kundli in May 2006 by Haryana State Industrial and Infrastructure Development Corporation for a total consideration of INR280 million. The construction work was started in May 2007. The project is expected to have a soft launch by October 2010 in order to coincide with the Commonwealth Games being held in Delhi, and full-fledged commercial launch in January 2011. MPPL is a 100% subsidiary of AMR, which is owned by four business families: the Soni family (Mr. Ram Chander Soni and his brother Mr. Arun Kumar Soni), and the families of Mr. Brij Mohan Gupta, Mr. Ankit Gupta, and Mr. Krishan Kumar. PACIFICA CHENNAI: CRISIL Reaffirms 'B+' Rating On INR790MM Loan --------------------------------------------------------------- CRISIL's rating on the long-term loan of Pacifica (Chennai - Old Mahabalipuram Road project) Infrastructure Company Pvt Ltd continues to reflect Pacifica Chennai's weak financial risk profile marked by weak liquidity and debt protection metrics; and continued low occupancy levels because of sluggish demand and excess commercial real estate supply in the Chennai market. These rating weaknesses are partially offset by the financial support extended to the company by its promoters. Facilities Ratings ---------- ------- INR790.0 Million Term Loan B+/Negative (Reaffirmed) Outlook: Negative CRISIL believes that Pacifica Chennai's ability to service its debt will continue to depend on timely infusion of funds by its promoters. While CRISIL expects some improvement in the occupancy levels in 2010-11 (refers to financial year, April 1 to March 31), the increase in Pacifica Chennai's cash accruals will be gradual, given the over-supply situation in the Chennai commercial real estate segment and slowdown in demand from information technology (IT) and IT-related companies. The rating could be downgraded if there is any adverse impact on the saleability of Pacifica Chennai's project, if the company aggressively undertakes new projects, which may deteriorate its overall capital structure and debt protection indicators, or if the company delays servicing its term loan. Conversely, the outlook could be revised to 'Stable' in case of better-than-expected demand for Pacifica Chennai's commercial space, resulting in easing the company's liquidity problem. About Pacifica Chennai Pacifica Chennai is part of the US-based Pacifica group's Indian operations. The company has built an IT park in Chennai, on the Old Mahabalipuram road, at a project cost of INR1.45 billion. The project is spread over 6.98 acres, with a saleable area of 814,926 square feet. Besides this project, the Pacifica group is undertaking residential projects and a hotel project in Ahmedabad. The Pacifica group was founded by Mr. Ashok Israni in 1978, and is headquartered in San Diego, California, USA. RENFRO INDIA: Accumulated Losses Cue CRISIL 'B+' Ratings -------------------------------------------------------- CRISIL has assigned its 'B+/Stable/P4' ratings to Renfro India Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR74.50 Million Term Loan B+/Stable (Assigned) INR300.00 Million Proposed LT B+/Stable (Assigned) Bank Loan Facility INR53.50 Million Export Packing Credit P4 (Assigned) INR43.50 Million Letter of Credit P4 (Assigned) INR7.50 Million Bank Guarantee P4 (Assigned) The ratings reflect RIPL's weak financial risk profile, driven by low profitability and accumulated losses, average scale of operations, product concentration in revenue profile, and susceptibility to volatility in the value of the Indian rupee. These rating weaknesses are partially offset by the benefits that RIPL derives from its promoters' experience in the socks manufacturing business, and from its association with Renfro Corporation (USA). CRISIL has treated RIPL's redeemable preference share capital of INR122.9 million outstanding as on March 31, 2010, as neither debt nor equity, as the redemption, including interest payment, is expected only after five years. However, CRISIL has treated the compulsorily convertible preference share capital of INR90 million outstanding as on March 31, 2010, as equity and part of the company's net worth, as it is expected to be converted into equity in the medium term. Outlook: Stable CRISIL believes that RIPL's financial risk profile will remain weak because of its low profitability and weak operating efficiency. However, RIPL will continue to benefit from the support from its overseas joint venture partner, Renfro Corporation. The outlook may be revised to 'Positive' if RIPL increases its scale of operations and improves its profitability significantly, leading to an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of deterioration in RIPL's financial risk profile, most likely because of depressed profitability or large debt-funded capital expenditure. About Renfro India Renfro India Pvt Ltd was originally set up as Karnik Hurtwits Intersocks Pvt Ltd in 1995 as an equal joint venture between Mr. C Y Pal and Hurtwits Intersocks SRL (an Italian socks manufacturer). Subsequently, in 2002-03 (refers to financial year, April 1 to March 31), the stake owned by the Hurtwits group was sold to Renfro Corporation, and RIPL acquired its current name. The company manufactures and exports socks. RIPL has two socks manufacturing units in Nashik and Pune (Maharashtra), with a combined manufacturing capacity of 31.9 million pairs per annum. It manufactures socks for various large US-based players such as Wal-Mart Stores Inc, and European players such as Marks & Spencer Plc, UK, Hema BV, Netherlands, and markets its products through Renfro Corporation. RIPL is expected to report a net loss of INR8 million on net sales of INR540 million for 2009-10, against a net loss of INR49.5 million on net sales of INR368 million for 2008-09. SHARMANJI YARNS: Fitch Assigns 'BB' National Long-Term Rating ------------------------------------------------------------- Fitch Ratings has assigned India's Sharmanji Yarns Private Limited (SYPL) a National Long-term rating of 'BB(ind)'. The Outlook is Stable. At the same time, Fitch has assigned National ratings to SYPL's bank loans: -- Long-term bank loans of INR525 million: 'BB(ind)'; -- Fund-based working capital limits of INR200 million: 'BB(ind)'/'F4(ind)'; and -- Non-fund based working capital limits of INR15 million: 'BB(ind)'/'F4(ind)'. The ratings are constrained by SYPL's small scale of operations and commoditized nature of the cotton yarns business, coupled with intense competition in domestic textile sector. The company has a limited track record in manufacturing yarns, having only commenced commercial operations in April 2008; however, Fitch draws comfort that SYPL's promoter has a longstanding experience in yarn trading. The ratings are also supported by the successful implementation of the first and second phases of the initial capacity expansion, which led to a total capacity of 27,600 spindles at end-March 2010. Favorable rating factors include locational advantage - its manufacturing facility is based at textile hub Ludhiana, Punjab - as well as technologically-advanced machinery and its efficient sourcing of raw material. These factors have translated into healthy operating EBITDA margins of 17.6% in FY09. Fitch notes that more than 90% of the revenues are driven by the domestic market which is exhibiting healthy growth trends despite the global slowdown. SYPL has a committed capex of INR73.7 million for FY10-FY11- to add 2,400 spindles and a 66KVA substation for captive power consumption needs at its existing manufacturing facility; the additional capacity is expected to commence operations by June 2010. The company also has a medium-term capex programme of adding another 36,000 spindles in two phases by April 2012, which would be 70% debt-funded. Leverage and gearing are therefore expected to remain high over the medium term. The coverage ratios are comfortable, and the liquidity is supported by well-spread debt maturities under TUFS (Technology Upgradation Fund Scheme). Positive rating triggers include an enhancement in the scale of operations and an ability to sustain high margins. Conversely, any adverse movement in sales realizations, which would result in deterioration in margins, coverage and leverage, as well as debt- funded capex beyond envisaged, which would affect leverage and gearing, would be negative ratings drivers. SYPL manufactures cotton yarns and polyester-cotton yarns. SARJU IMPEX: Fitch Assigns National Long-Term Rating at 'B' ----------------------------------------------------------- Fitch Ratings has assigned India's Sarju Impex Limited a National Long-term rating of 'B(ind)'. The Outlook is Stable. Simultaneously, Fitch has assigned 'B(ind)' ratings to the company's INR235 million term loan and INR300 million cash credit limits, as well as a 'F4(ind)' rating to its INR209.6 million non- fund based bank limits. The National Long-term rating reflects the sponsors track record and diversified presence across businesses like diamond processing, jewellery manufacturing and agri commodities. The rating also reflects the unconditional and irrevocable guarantee provided by its sponsors, which covers the full and timely payment of all accrued interest, as well as the strong global demand outlook for high-pressure cylinders. Sarju Impex is setting up a manufacturing facility, which will manufacture CNG and Industrial Gas cylinders. The total cost of the project is INR352.9 million and is partly funded by the INR237.5 million term loan, with the balance in the form of equity from the promoters. The rating is constrained by the delay in the project commissioning given the delay in getting necessary approvals. The manufacturing facility commenced production only in April 2010 (it had previously been scheduled for completion by June 2009). Also, Fitch notes that Sarju Impex does not have an operational track record and has a relatively small size of operation, relative to peers. The agency expects the business to be working-capital intensive, with raw material (which constitutes around 60% of the total cost) having to be imported from China, which indicates raw material price and forex volatility risks. Positive rating triggers include a stability in revenues and raw material linkages, which would lead to margins improvement and an improved liquidity position. Conversely, any significant delay in the startup of the project as well as negative changes in working capital, which would raise leverage levels and affect margins, could have a negative rating impact. Sarju Impex is 65% held by promoters of Dharmanandan group, a diamond processing and jewellery manufacturing company. The project funding was in the ratio of 2:1 (debt: equity). However sponsors have brought in the equity of INR150m till date. Fitch expects the capacity utilization to reach 60% by FY11E whereas DSCR to be below 1.4x. VARUN INDUSTRIES: CARE Assigns 'CARE BB+' Rating on INR415cr Loan ----------------------------------------------------------------- CARE has assigned a 'CARE BB+' rating to the Long-term Bank Facilities aggregating INR415 crore of Varun Industries Limited. This rating is applicable to facilities having tenure of over one year. Facilities with this rating are considered to offer inadequate safety for timely servicing of debt obligations. Such facilities carry high credit risk. CARE assigns '+' or '-' signs to be shown after the assigned rating (wherever necessary) to indicate the relative position within the band covered by the rating symbol. These ratings are assigned to the long-term bank facilities aggregating INR415 crore. Rating Rationale The ratings are constrained by VIL's high leverage, the significant refinancing risk associated with its short-term liabilities, substantial corporate guarantees extended by the company to subsidiaries/group companies, consistently high utilization of fund-based limits, its future commitment towards various capital-intensive projects to be undertaken in its subsidiaries and overall absence of a coherent business strategy on the part of its management. The rating is further constrained by the company's recent foray into the onshore rig business, a completely new field for the company as well as its promoters. The ratings derive strength from the promoters' experience in export of stainless steel utensils and trading of diamonds and professionally qualified management. VIL's ability to achieve the envisaged sales and profitability levels in each of its business areas, including its recent onshore rig venture is the key rating sensitivity. Varun Industries Limited is engaged in exports of stainless steel houseware, cookware and kitchenware, other utility items and trading of polished diamonds. The company also trades in general merchandise based on demand from export markets. Further, VIL has a manufacturing facility for stainless steel utensil at Vasai and a stainless steel re-rolling plant in Jodhpur, Rajasthan of 10,000 mtpa. VIL also has recently acquired an onshore rig providing rig drilling on charter basis and has set up wind turbine generators in Jaisalmer, Rajasthan. On a total income of INR1,200.43 crore, VIL posted a PAT of INR13.01 crore in FY09. VIL reported net sales of INR1,017.09 crore and a PAT of INR21.05 crore in 9MFY10. ================= I N D O N E S I A ================= ARPENI PRATAMA: S&P Downgrades Corporate Credit Rating to 'SD' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Indonesia-based PT Arpeni Pratama Ocean Line Tbk. to 'SD' (selective default) from 'CC'. At the same time, the issue rating on the outstanding US$140.85 million senior secured notes issued by Arpeni Pratama Ocean Line Investment B.V. and guaranteed by Arpeni, due May 3, 2013, was affirmed at 'C' following the missed payment of its coupon on May 3, 2010. It has a 30-day grace period to pay the coupon. "S&P lowered the ratings on Arpeni to 'SD' from 'CC' after the company deferred principal payments of some loans," said Standard & Poor's credit analyst Manuel Guerena. "Although the company has said it plans to keep on making interest payments, the deferral is part of Arpeni's steps in trying to manage its cash, liquidity, and working capital positions." However, this deferral exposes Arpeni to possible repayment acceleration of its debts if cross-default provisions are triggered -- a situation compounded by the efforts to unwind some derivative transactions, Mr. Guerena said. In S&P's view, Arpeni's liquidity was increasingly stressed throughout 2009. Despite its high debt, the company funded its growing working capital requirements during the year with short- term loans. This situation was compounded by a weaker operating margin. Arpeni dominates the local dry bulk industry, transporting about one-fifth of the overall coal shipments within Indonesia, where demand from the power sector is favorable. S&P expects the company to benefit from the thorough implementation of cabotage regulations by the Indonesian government starting this year; the regulations are aimed at reducing dependence on foreign-flagged vessels for transportation within Indonesian waters. ========= J A P A N ========= KANAGAWA CLINIC: Files For Bankruptcy in Tokyo District Court ------------------------------------------------------------- Kyodo News International reports that the operator of major eye clinic chain Kanagawa Clinic Ophthalmology Department has filed for bankruptcy with debts of around JPY6.8 billion. The news agency says the operator went bust after: -- dozens of clients complained of infections following laser surgery at a clinic; and -- a warning from the government over misleading pricing. The operator, the Hakubikai foundation based in Tokyo, said Friday that the Tokyo District Court had approved bankruptcy proceedings on Thursday, the report notes. According to the report, the foundation said Kanagawa Clinic branches in Tokyo, Nagoya, Osaka and Fukuoka will be passed on to another healthcare group. TOSHIBA CORP: Posts JPY19.7-Bil. Net Loss in FY2009 --------------------------------------------------- Toshiba Corp. announced its consolidated financial results for fiscal year ended March 31, 2010. The Company reported a net loss of JPY19.7 billion on JPY6.38 trillion of net sales for the year ended March 31, 2010, compared with a net loss of JPY343.5 billion on JPY6.65 trillion of net sales for the year ended March 31, 2009. As of March 31, 2010, the Company had total assets of JPY5.45 trillion against total liabilities of JPY4.32 trillion, resulting in stockholders' equity of JPY1.12 trillion. A full-text copy of the company's Consolidated Financial Statements is available for free at: http://ResearchArchives.com/t/s?61a5 A full-text copy of the company's Consolidated Balance Sheet is available for free at: http://ResearchArchives.com/t/s?61a6 About Toshiba Corp. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is a Japan-based manufacturer involved in five business segments. The Digital Products segment offers cellular phones, hard disc devices, optical disc devices, liquid crystal televisions, camera systems, digital versatile disc (DVD) players and recorders, personal computers (PCs) and business phones, among others. The Electronic Device segment provides general logic integrated circuits (ICs), optical semiconductors, power devices, large-scale integrated (LSI) circuits for image information systems and liquid crystal displays (LCDs), among others. The Social Infrastructure segment offers various generators, power distribution systems, water and sewer systems, transportation systems and station automation systems, among others. The Home Appliance segment offers refrigerators, drying machines, washing machines, cooking utensils, cleaners and lighting equipment. The Others segment leases and sells real estate. * * * As of April 26, 2010, Toshiba Corporation continues to carry Fitch Ratings 'BB' Long-term FC and LC Issuer Default Ratings, 'B' Short-term FC and LC Issuer Default Ratings and 'BB' Senior unsecured notes ratings. ==================== N E W Z E A L A N D ==================== CRAFAR FARMS: OIO Investigates Four Crafar Farms Purchases ---------------------------------------------------------- The Overseas Investment Office is investigating the purchase of four farms in the Crafar group by UBNZ Funds Management, a Hong Kong investment group, a report posted at stuff.co.nz says. UBNZ Funds has proposed spending as much as NZ$1.5 billion on New Zealand dairy assets. According to the report, the OIO probe is on whether the transactions breached the Overseas Investment Act by not obtaining the required consents. In February, stuff.co.nz relates, UBNZ Funds Management bought four Crafarms that were immediately transferred to an associate company, UBNZ Assets Holdings. "It is an offence for an overseas person or an associate of an overseas person to buy sensitive land without consent and significant penalties apply," the report quoted Annelies McClure, manager of the OIO, as saying in a statement. The report notes the OIO said the investigation is expected to take several months "due to the complexity of the transactions and the need to source and thoroughly analyze the information." About Crafar Farms Crafar Farms, New Zealand's largest family owned dairy business, runs about 20,000 milking cows, and carries about 10,000 of other stock. The company employs 200 staff. Crafar Farms was placed in receivership by its lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson Finance in October 2009. The banks are owed around NZ$200 million and put KordaMentha partners Michael Stiassny and Brendon Gibson in as receivers after Crafar Farms breached covenants on its loans. The New Zealand Herald said CraFarms' banks have been working with the Ministry of Agriculture and Forestry, Federated Farmers and Fonterra to ease the Crafars out of their business. This follows multiple convictions for environmental lapses and animal neglect in recent years and the revelation on September 28, 2009, from interest.co.nz of animal neglect on one of its large farms in the King Country near Benneydale. CRAFAR FARMS: Owner in Talks With Overseas Buyer ------------------------------------------------ Crafar Farms owner Allan Crafar said he is still trying to raise the money to take the farms out of receivership, according to Radio New Zealand. Radio New Zealand says receivers KordaMentha are selling 13 dairy and three dry stock farms in the central and lower North Island that were operated by companies owned by Allan, Beth and Frank Crafar. According to the report, the farms are expected to be advertised next week, in New Zealand and overseas, and tenders will be open to June 23. The report relates real estate firm organizing the sales, Bayleys, said there has already been a high level of interest from potential buyers. But Allan Crafar said he is negotiating with overseas interests to provide the funding to clear the debts before the farms are sold. Meanwhile, Radion New Zealand reports that the receivers said they are still in the process of taking court action to enforce the trespass notices they have served on the Crafars. The report notes that the receivers are trying to remove them from three family homes on two of the farms in the Reporoa area. About Crafar Farms Crafar Farms, New Zealand's largest family owned dairy business, runs about 20,000 milking cows, and carries about 10,000 of other stock. The company employs 200 staff. Crafar Farms was placed in receivership by its lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson Finance in October 2009. The banks are owed around NZ$200 million and put KordaMentha partners Michael Stiassny and Brendon Gibson in as receivers after Crafar Farms breached covenants on its loans. The New Zealand Herald said CraFarms' banks have been working with the Ministry of Agriculture and Forestry, Federated Farmers and Fonterra to ease the Crafars out of their business. This follows multiple convictions for environmental lapses and animal neglect in recent years and the revelation on September 28, 2009, from interest.co.nz of animal neglect on one of its large farms in the King Country near Benneydale. SOUTH CANTERBURY: S&P Retains CreditWatch Negative on Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services updated its CreditWatch Negative on New Zealand-based finance company, South Canterbury Finance Ltd. S&P initially placed the ratings on SCF on CreditWatch Negative on March 2, 2010, and the ratings remain on CreditWatch with negative implications. "The rating remains on CreditWatch Negative because SCF is still exposed to material debenture-refinancing pressures leading into October 2010, a month in which a significant level of debentures is set to mature," Standard & Poor's credit analyst Derryl D'silva said. "S&P expects SCF's ability to deal with this liquidity and refinancing risk to become clearer by the end of May 2010. At this time, we'll be able to observe and assess the company's success in further building balance sheet liquidity and reducing its refinancing requirements leading into October 2010. S&P also believe SCF will continue to pursue other options such as asset sales, and recapitalization to improve its overall financial strength." Although SCF's financial profile remains weak for its 'BB' rating, the company has made some progress in improving its credit profile from when it was initially placed on CreditWatch Negative on March 2, 2010. "Importantly, SCF has improved its balance sheet liquidity position and overall prospects of managing its refinancing requirements by retaining support from its debenture investors and attracting new debenture inflows," Mr. D'silva said. These prospects have benefited from the company securing approval to stay in the extended Retail Government Guarantee Scheme, and management's efforts to strengthen broker and investor support. Specifically, SCF has increased its cash on balance sheet to about NZ$100 million on the back of an average reinvestment rate of 43% over the last five months, new debenture inflows, and loan repayments. Additionally, short-term liquidity will benefit from a capital injection of NZ$37.5 million as of end-May 2010. The ratings could be taken off CreditWatch Negative and affirmed with a negative outlook within a month, provided liquidity concerns moderate such that: SCF's cash balance builds to about NZ$150 million at the end of May 2010 and S&P feel that this will likely improve to about NZ$200 million in the near term, while meeting ongoing liquidity needs. There is evidence of sustainable improvement in the monthly debenture reinvestment rate. There is evidence of good and sustainable new debenture inflows. The NZ$350 million debenture maturity in October 2010 was reduced each month to get closer to SCF's average refinancing requirement of about NZ$100 million. Execution of other options such as asset sales, recapitalization, and impaired loan recoveries continue along with efforts to improve liquidity so as to restore SCF's overall financial strength to a level that compares with the 'BB' rating and peers. No new credit concerns emerge. Conversely, the rating will be lowered?potentially by more than one notch?and will remain on CreditWatch Negative if: * Some or all of the above do not eventuate. * It was forced to rely on asset sales to meet any ongoing liquidity shortfalls. In S&P's view, a company rated 'BB' cannot rely on asset sales to meet short-term liquidity needs. STRATEGIC FINANCE: Receivers to Run Sale Process on Loan Book ------------------------------------------------------------- The receivers of Strategic Finance said they have received several expression of interest regarding the purchase of the company's loan book, either in whole or in part. Receivers PricewaterhouseCoopers said in a letter to investors that they have also contacted the wider PricewaterhouseCoopers network in Australia and Asia to identify other potential interested parties. "We will be running a formal sale process with indicative offers for the loan book, due by mid June 2010. This will enable the receivers to assess the level of interest in the loan book and any indicative offers against the expected realisations in the receivership." "Given the sale process currently being undertaken, we do not intend announcing what the potential recovery range may be for secured debenture investors as this could be commercially prejudicial negotiations with interested parties." "Any potential recovery range will not be announced until after the sales process has been completed," the receivers said. A full-text copy of the PricewaterhouseCoopers's Letter to Investors is available at no charge at: http://ResearchArchives.com/t/s?61a0 About Strategic Finance Headquartered in Wellington, New Zealand, Strategic Finance Limited (NZE:SFLHA) -- http://www.strategicfinance.co.nz/-- operates as a specialist finance company offering financial services, primarily to the property sector. The Company also provides specialist financial and advisory services to the property and corporate sectors. The Company operates in New Zealand, Australia and Pacific Islands. The Company's operating subsidiaries include Strategic Advisory Limited, Strategic Nominees Limited, Strategic Mortgages Limited and Strategic Nominees Australia Limited. The Company's non-operating subsidiary is Strategic Properties No.1 Limited. In May 2009, the Company incorporated a subsidiary, Gulf Property Holdings Limited. Strategic Finance Limited's parent company, Strategic Investment Group, is wholly owned by Australian-based finance company Allco HIT Limited. PricewaterhouseCoopers partners John Fisk and Colin McCloy have been appointed receivers of Strategic Finance Limited and related companies Strategic Advisory Limited, Strategic Mortgages Limited, Strategic Nominees Limited, and Strategic Nominees Australia Limited. This ends the moratorium arrangement that has been in place since December 2008. The companies' trustee, Perpetual Trust Limited, appointed receivers after SFL failed to generate sufficient loan recoveries for its milestone payment on January 7, 2010. The company owed NZ$417 million to 13,000 investors. STRATEGIC FINANCE: Regulator Appoints Corporate Forensic Examiner ----------------------------------------------------------------- Anne Gibson at The New Zealand Herald reports that the Securities Commission has appointed an inspector to probe the collapse of Strategic Finance According to the report, corporate forensic examinations have started at Strategic Finance, the company run for years by former All Black captain and top rugby administrator Jock Hobbs. The New Zealand Herald relates Mr. Hobbs -- who has stepped aside as NZ Rugby Union and Rugby New Zealand 2011 chairman to have six months of therapy for leukemia -- was chief executive and remains a director of the company. The report says possible breaches of the Securities Act are being investigated. The New Zealand Herald reports that at least one meeting has taken place between receivers in charge of Strategic and the newly appointed inspector. About Strategic Finance Headquartered in Wellington, New Zealand, Strategic Finance Limited (NZE:SFLHA) -- http://www.strategicfinance.co.nz/-- operates as a specialist finance company offering financial services, primarily to the property sector. The Company also provides specialist financial and advisory services to the property and corporate sectors. The Company operates in New Zealand, Australia and Pacific Islands. The Company's operating subsidiaries include Strategic Advisory Limited, Strategic Nominees Limited, Strategic Mortgages Limited and Strategic Nominees Australia Limited. The Company's non-operating subsidiary is Strategic Properties No.1 Limited. In May 2009, the Company incorporated a subsidiary, Gulf Property Holdings Limited. Strategic Finance Limited's parent company, Strategic Investment Group, is wholly owned by Australian-based finance company Allco HIT Limited. PricewaterhouseCoopers partners John Fisk and Colin McCloy have been appointed receivers of Strategic Finance Limited and related companies Strategic Advisory Limited, Strategic Mortgages Limited, Strategic Nominees Limited, and Strategic Nominees Australia Limited. This ends the moratorium arrangement that has been in place since December 2008. The companies' trustee, Perpetual Trust Limited, appointed receivers after SFL failed to generate sufficient loan recoveries for its milestone payment on January 7, 2010. The company owed NZ$417 million to 13,000 investors. =========== T A I W A N =========== ASUSTEK COMPUTER: Sees Q2 Shipments of Notebook PC Rise by 10% -------------------------------------------------------------- China Knowledge, citing Dow Jones Newswires, reports that Asustek Computer Inc. expects its second-quarter shipments of notebook personal computers to rise by at most 10% from the first quarter, and its netbook shipments to rise up to 5%. ASUSTeK Computer Inc. -- http://www.asus.com.tw/-- is principally engaged in the provision of computers, communications and consumer electronics solutions. The Company offers desktop motherboards, server motherboards, three-dimension graphics display cards, audio cards, laptops, servers, smart personal digital assistant mobile phones, liquid crystal displays, LCD televisions, broadband communication products, compact disc read-only memory drives, digital versatile disc drives, disc carving machines and Eee personal computers, among others. The Company distributes its products in domestic market and to overseas markets, including the United States, Canada, Asia Pacific, Europe and Africa. * * * Asustek Computer continues to carry Fitch Ratings 'BB+' long-term foreign currency issuer default ratings. AU OPTRONICS: Reports April 2010 Consolidated Revenue ----------------------------------------------------- AU Optronics Corp. disclosed preliminary consolidated April 2010 revenue of NT$41,154 million, up by 1.2% from March and 68.9% year-over-year. Large-sized panel (a) shipments for April 2010, with applications on desktop monitor, notebook PC, LCD TV and other applications amounted to approximately 9.66 million units, decreasing by a mere 1.1% from the previous month. As for small-and-medium-sized panels, the shipments reached 21.1 million units, down by 1.3% month-over-month. (a) Large size refers to panels that are 10 inches and above in diagonal measurement while small and medium size refers to those below 10 inches. Sales Report :(Unit: NT$ million) Net Sales Consolidated Unconsolidated --------- ------------ -------------- April 2010 41,154 39,012 March 2010 40,673 38,801 M-o-M Growth 1.2% 0.5% April 2009 24,359 24,073 Y-o-Y Growth 68.9% 62.1% Jan to April 2010 152,718 145,254 Jan to April 2009 75,100 74,542 Y-o-Y Growth 103.4% 94.9% 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. ********* 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 ***