/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100531.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 31, 2010, Vol. 13, No. 105 Headlines A U S T R A L I A BURRANGONG MEAT: Fraud Allegation Won't Affect Sale, Receiver Says PERPETUAL TRUSTEE: S&P Assigns Ratings on Various Notes C H I N A CHINA LOGISTICS: Posts US$28,278 Net Loss in Q1 2010 H O N G K O N G CORIOLANUS LIMITED: Moody's Takes Rating Actions on Notes LA COSTE: Members' Final Meeting Set for June 21 LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibonds MANDOLIN HK: Court Enters Wind-Up Order MASDA INTERNATIONAL: Court Enters Wind-Up Order MIB INTERIORS: Court Enters Wind-Up Order NORTH SPRING: Members' Final General Meeting Set for June 30 PACIFIC WINES: Members and Creditors' Meetings Set for June 21 PAK SHING: Members' Final Meeting Set for June 25 PAN WILL: Court Enters Wind-Up Order PEREGRINE STRATEGIC: Creditors' Proofs of Debt Due June 10 PROSON DEVELOPMENT: Court Enters Wind-Up Order RICH CHANNEL: Court Enters Wind-Up Order SOLSAMMEN (HK): Court Enters Wind-Up Order SUN HONEST: Court Enters Wind-Up Order TAKEISHI OIL: Court Enters Wind-Up Order TRANSASIA ENGINEERING: Creditors' Proofs of Debt Due June 3 I N D I A AIR INDIA: De-recognizes Two Major Unions; Sacks 41 Employees ATRIA BRINDAVAN: CRISIL Cuts Rating on INR808MM LT Loan to 'C' CHHABI ELECTRICALS: ICRA Places 'LBB' Rating on INR8.9MM Term Loan ETC AGRO: CRISIL Assigns 'BB' Rating on INR200 Million LT Loan GOWTHAMI SOLVENT: ICRA Reaffirms 'LBB' Rating on INR312.2MM Loan LAQSHYA MEDIA: Default in Loan Repayment Cues CARE 'C' Ratings LAQSHYA HYDERABAD: CARE Rates INR30cr Long Term Loan at 'D' NKCM SPINNERS: CRISIL Assigns 'B+' Ratings on INR30MM LT Loan RATAN MOTORS: CRISIL Rates INR120.0 Million Cash Credit at 'BB-' SENTINI BIOPRODUCTS: ICRA Reaffirms 'LBB+' Rating on INR400MM Loan SHIVA TEXFABS: ICRA Cuts Rating on INR730 Million LT Loans to 'LB' SMS STEELS: CRISIL Assigns 'B' Ratings on Various Bank Facilities SUGUNA RAMAIAH: CRISIL Places 'BB' Ratings on INR103MM LT Loan TUBEKNIT FASHIONS: ICRA Downgrades LT Rating on Loans to 'LB' VEDIKA CREDIT: Low Net Worth Cues CRISIL's 'B+' Ratings on Loans J A P A N CAFES 3: Moody's Reviews Ratings on Various Classes of Notes GODO KAISHA: S&P Downgrades Ratings on Floating-Rate Notes JAPAN AIRLINES: South Korea Fines 19 Airlines for Price Fixing J-CORE 14: Moody's Reviews Ratings on Nine Classes of Notes J-CREM 2: Moody's Reviews Ratings on Seven Classes of Notes L-JAC 4: Moody's Reviews Ratings on Various Classes of Bonds N E W Z E A L A N D CANTERBURY MORTGAGE: To Repay Investors Another 5 Cents in July SOUTH CANTERBURY: Allan Hubbard Appointed as President for Life SOUTH CANTERBURY: Ratings Downgrade Won't Affect Crown Guarantee ST LAURENCE: Direct Property Investments No. 6 Faces Receivership * NEW ZEALAND: Finance Firm Investors Entitled to Refunds S I N G A P O R E ACCUVAL SINGAPORE: Creditors' Proofs of Debt Due June 28 C.F.H. INSURANCE: Creditors' Proofs of Debt Due June 27 LIFESTYLE & LEISURE: Creditors' Proofs of Debt Due June 31 L&M INFRATECH: Court Enters Wind-Up Order L&M EQUIPMENT: Court Enters Wind-Up Order L&M PETROMA: Court Enters Wind-Up Order RADAR MAX: Court Enters Wind-Up Order SEO FRAGRANCE: Court Enters Wind-Up Order TW OILS: Court Enters Wind-Up Order T H A I L A N D * THAILAND: Gov't. to Draw Up Aid Package to Affected SMEs - - - - - ================= A U S T R A L I A ================= BURRANGONG MEAT: Fraud Allegation Won't Affect Sale, Receiver Says ------------------------------------------------------------------ ABC Rural reports that the receiver of Burrangong Meat Processors doesn't believe its sale will be delayed by revelations about its former owners. Documents tabled at a Senate inquiry 10 years ago revealed that the Commonwealth Bank had investigated former owners Grant Edmonds and Kim Noble over fraud allegations, the report says. ABC relates the bank's investigators found that the former owners initially bought the abattoir using some funds channeled through dodgy bank accounts. Mr. Edmonds denies any wrongdoing. The abattoir's receiver Alan Hayes said he won't comment on the past investigation, but says a sale is close. About Burrangong Meat Burrangong Meat Processors Pty Ltd -- http://www.bmpmeat.com.au/ -- is owned and operated by The Edmonds Group, an Australian meat processing and distribution company established in 1984. As reported in the Troubled Company Reporter-Asia Pacific on February 3, 2010, more than 300 abattoir workers at Burrangong Meat Processors in the southwest New South Wales town of Young have lost their jobs after the town's biggest employer closed its doors. The company went into receivership with debts of more than $20 million. PERPETUAL TRUSTEE: S&P Assigns Ratings on Various Notes ------------------------------------------------------- Standard & Poor's Ratings Services assigned its ratings to the notes issued by Perpetual Trustee Co. Ltd. as trustee of IMPALA Trust No. 1 - Sub Series 2010-1. The transaction is the first public securitization undertaken by Investec Experien Pty Ltd. The ratings reflect S&P's view of: * The creation of a new special-purpose sub-series, coupled with the transaction's legal structure. The entity, IMPALA Trust No. 1 ? Sub Series 2010-1, reflects Standard & Poor's special- purpose entity criteria. * The credit support for each class of notes provided in the form of subordination: 8.1% provided at 'AAA', 6.4% provided at 'AA', 4.9% provided at 'A', 3.2% provided at 'BBB', and 2.8% provided at 'BB'. Liquidity support equal to AU$2.6 million, which is 1.09% of the receivables. Subject to a floor amount of AU$1.3 million, liquidity is funded from note issuance at closing, and is held in the liquidity account. Principal collections may be used to meet short-term liquidity demands. All contract payments, including the residual or balloon payments, are an obligation of the borrower. As a result, in S&P's view, the issuer is not exposed to market value risk associated with the sale of the autos and equipment (on performing loans), which is a risk that may be associated with other products such as operating leases. The benefit of a fixed-to-floating interest rate swap provided by Australia and New Zealand Banking Group Ltd. (AA/Stable/A-1+), to hedge the mismatch between the fixed-rate interest and rental payments on the receivables, and the floating-rate coupon payable on the notes. Ratings Assigned IMPALA Trust No. 1 ? Sub Series 2010-1 Class Rating Amount (mils. A$) ----- ------ ----------------- A AAA 221.22 B AA 4.10 C A 3.60 D BBB 4.10 E BB 1.02 Seller Not rated 6.66 ========= C H I N A ========= CHINA LOGISTICS: Posts US$28,278 Net Loss in Q1 2010 ---------------------------------------------------- China Logistics, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of US$28,278 on US$5,424,157 of revenue for the three months ended March 31, 2010, compared with net income of US$2,977,168 on US$3,198,572 of revenue for the same period of 2009. The Company's balance sheet as of March 31, 2010, showed US$6,098,160 in assets and US$8,450,373 of liabilities, for a shareholders' deficit of US$2,352,213. "Our ability to continue as a going concern is dependent upon our ability to maintain profitable operations in the future and to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they become due and pay disgorgement to the SEC if it prevails in its case against us. The SEC is seeking disgorgement from us of US$1,078,490 and this amount has not been accrued as of March 31, 2010 or December 31, 2009. "These matters, among others, raise substantial doubt about our ability to continue as a going concern. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern." A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?636e Based in Guangzou, P.R. China, China Logistics, Inc., specializes in logistical services for car manufacturers, car components, food assortments, chemicals, paper, and machinery in China. The services cover various aspects of transportation management, including logistical planning, import and export management, electronic customs declaration systems, supply chain planning, transporting products from ports to warehouses or vice versa, organization of transportation, and storage and distribution of products. * * * As reported in the Troubled Company Reporter on April 21, 2010, Lake & Associates CPA's LLC expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for the year ended December 31, 2009. The independent auditors noted that of the Company's recurring losses and accumulated deficit. ================ H O N G K O N G ================ CORIOLANUS LIMITED: Moody's Takes Rating Actions on Notes --------------------------------------------------------- Moody's Investors Service announced these rating actions on notes issued by Coriolanus Limited, a collateralized debt obligation transaction referencing a managed portfolio of corporate entities domiciled in Asia. Issuer: Coriolanus Limited (Series 73-76) -- Series 74 US$ 50,000,000 Portfolio Credit Linked Floating Rate Secured Notes due 2019, Upgraded to A1; previously on Aug 12, 2009 Downgraded to A2 -- Series 75 US$ 50,000,000 Portfolio Credit Linked Floating Rate Secured Notes due 2019, Upgraded to Baa1; previously on Aug 12, 2009 Downgraded to Baa3 -- Series 76 US$ 50,000,000 Portfolio Credit Linked Floating Rate Secured Notes due 2019, Upgraded to Ba1; previously on Aug 12, 2009 Downgraded to Ba3 The rating actions taken are the result of the determination of recovery for three credit events that affect 11% of initial portfolio notional amount. The recovery was significantly higher than Moody's average recovery assumption of 45%, leading to an increase in the effective credit enhancement to the rated notes compared to previous assumptions. The final price on a senior unsecured obligation of a building & construction company was determined at 98%, and on a senior secured obligation of a real estate developer, 100%. Both entities are domiciled in India. Their combined exposures account for 9% of the initial portfolio notional amount. The final price on a senior unsecured obligation of a beverage company in China, accounting for 2% of the initial portfolio's notional amount, was determined at 30%. Moody's notes that, following prepayment or amortization of some of the reference obligations, only 57.9% of the initial portfolio amount is now exposed to corporate reference obligations. The protection buyer can replenish the portfolio if relevant criteria, which include Reference Portfolio Guidelines and Moody's CDOROM(TM) Model Test, are met. LA COSTE: Members' Final Meeting Set for June 21 ------------------------------------------------ Members of La Coste Company Limited will hold their final meeting on June 21, 2010, at 11:00 a.m., at Unit 402, 4/F., Malaysia Building, No. 50, Gloucester Road, Wanchai, in Hong Kong. At the meeting, Li Fat Chung and Chan Chi Bor, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibonds ------------------------------------------------------------ The Hong Kong Monetary Authority (HKMA) announced May 20 that investigation of over 99% of a total of 21,613 Lehman-Brothers- related complaint cases received has been completed. These include: * 13,077 cases which have been resolved by a settlement agreement reached under section 201 of the Securities and Futures Ordinance; * 2,327 cases which have been resolved through the enhanced complaint handling procedures required by the settlement agreement; * 2,558 cases which were closed because insufficient prima facie evidence of misconduct was found after assessment or no sufficient grounds and evidence were found after investigation; * 2,790 cases (including minibond cases) which are under disciplinary consideration after detailed investigation by the HKMA, of which proposed disciplinary notices are being prepared in respect of 1,835 such cases and proposed disciplinary notices or decision notices have been issued in respect of the other 955 cases; and * 672 cases in respect of which investigation work has been completed and are going through the decision process to decide whether there are sufficient grounds for disciplinary actions or whether the cases should be closed because of insufficient evidence or lack of disciplinary grounds. Investigation work is underway for the remaining 187 cases. A table summarizing the progress of the disciplinary and complaint-resolution work with respect to Lehman-Brothers-related complaints is available at http://ResearchArchives.com/t/s?62c8 About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MANDOLIN HK: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on May 12, 2010, to wind up the operations of Mandolin Hong Kong Limited. The official receiver is E T O'Connell. MASDA INTERNATIONAL: Court Enters Wind-Up Order ----------------------------------------------- The High Court of Hong Kong entered an order on May 12, 2010, to wind up the operations of Masda International Company Limited. The official receiver is E T O'Connell. MIB INTERIORS: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on May 12, 2010, to wind up the operations of MIB Interiors Design Limited. The official receiver is E T O'Connell. NORTH SPRING: Members' Final General Meeting Set for June 30 ------------------------------------------------------------ Members of North Spring Limited will hold their final general meeting on June 30, 2010, at 10:30 a.m., at Unit 201, 2/F., Malaysia Building, 50 Gloucester Road, Wanchai, in Hong Kong. At the meeting, Chiu Wai Hon, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PACIFIC WINES: Members and Creditors' Meetings Set for June 21 -------------------------------------------------------------- Members and creditors of Pacific Wines and Spirits Limited will hold their annual meetings on June 21, 2010, at 11:00 a.m., and 11:30 a.m., respectively at Rm. 803, Hang Seng Wanchai Bldg., 200 Hennessy Rd., Wanchai, in Hong Kong. At the meeting, Lo Shing Chi, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PAK SHING: Members' Final Meeting Set for June 25 ------------------------------------------------- Members of Pak Shing Commodities Company Limited will hold their final meeting on June 25, 2010, at 10:00 a.m., at Suite 1807, The Gateway, Tower II, 25 Canton Road, Tsimshatsui, Kowloon, in Hong Kong. At the meeting, Lam Chung Wah David, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PAN WILL: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on May 12, 2010, to wind up the operations of Pan Will Limited. The official receiver is E T O'Connell. PEREGRINE STRATEGIC: Creditors' Proofs of Debt Due June 10 ---------------------------------------------------------- Peregrine Strategic Investments Limited, which is in creditors' voluntary liquidation, requires its creditors to file their proofs of debt by June 10, 2010, to be included in the company's dividend distribution. The company's liquidator is: Joanne Oswin c/o PricewaterhouseCoopers 22/F., Prince's Building 10 Chater Road Central, Hong Kong PROSON DEVELOPMENT: Court Enters Wind-Up Order ---------------------------------------------- The High Court of Hong Kong entered an order on May 12, 2010, to wind up the operations of Proson Development Limited. The official receiver is E T O'Connell. RICH CHANNEL: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on May 12, 2010, to wind up the operations of Rich Channel Development Limited. The official receiver is E T O'Connell. SOLSAMMEN (HK): Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on May 12, 2010, to wind up the operations of Solsammen (HK) Limited. The official receiver is E T O'Connell. SUN HONEST: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on May 12, 2010, to wind up the operations of Sun Honest Asia Limited. The official receiver is E T O'Connell. TAKEISHI OIL: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on May 12, 2010, to wind up the operations of Takeishi Oil & Chemical Company Limited. The official receiver is E T O'Connell. TRANSASIA ENGINEERING: Creditors' Proofs of Debt Due June 3 ----------------------------------------------------------- Creditors of Transasia Engineering Co Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by June 3, 2010, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 13, 2010. The company's liquidator is: Chan Kam Man Unit 803, 8/F Shanghai Industrial Investment Building 48-62 Hennessy Road Wanchai, Hong Kong ========= I N D I A ========= AIR INDIA: De-recognizes Two Major Unions; Sacks 41 Employees ------------------------------------------------------------- The Economic Times reports that Air India has de-recognised its two major trade unions, sealed their offices and sacked another 41 employees in an unprecedented crackdown triggering a call by defiant union leaders for a fresh strike from June 12. Sources told ET that the Air Corporation Employees Union (ACEU) and All India Aircraft Engineers' Association (AIAEA) have been de-recognized by the management of National Aviation Company of India Ltd and their offices have been sealed. According to the report, ACEU general secretary J B Kadiyan said another notice for strike from June 12 has been served by the union. AIAEA general secretary Y V Raju also said his union intends to go on strike from June 12 or thereafter and a strike notice will be given, the report adds. A section of employees of Air India, including engineers, on May 25 went on a flash strike to protest delay in payment of salaries and problems relating to the working conditions of cabin crew. The employees also protested against Air India's gag order advising unions not to air their grievances to the media. The Troubled Company Reporter-Asia Pacific, citing The Wall Street Journal, reported on May 27, 2010, that the nationwide strike by some crew members and maintenance engineers of Air India ended May 26 after the Delhi High Court stopped them from continuing. "The court has imposed a stay on the ongoing strike and also on the one they had proposed to undertake from May 31," the Journal quoted Arvind Jadhav, chairman of Air India's parent, National Aviation Company of India Ltd, as saying. The Journal said the high court order means the workers can be sacked if they don't resume work. According to the report, Mr. Jadhav said the stay will be in place until July 13. 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 2009, 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. ATRIA BRINDAVAN: CRISIL Cuts Rating on INR808MM LT Loan to 'C' -------------------------------------------------------------- CRISIL has downgraded its rating on Atria Brindavan Power Ltd's term loan facility to 'C' from 'BB/Stable'. Facilities Ratings ---------- -------- INR808.00 Million Long-Term Loan C (Downgraded from BB/Stable) The downgrade reflects delays by the company in servicing its term loan because of weak liquidity, which was a result of delayed realisation of receivables from its main customer Chamundeshwari Electricity Supply Corporation. The rating reflects ABPL's below-average financial risk profile, marked by high gearing and weak debt protection metrics, vulnerability to scarcity of water, and to any further delay in realisation of receivables from CESC. These weaknesses are partially offset by ABPL's stable revenues backed by its power purchase agreement (PPA) with CESC. Set up in 2003, ABPL is a hydro-electric power generating company with a 16-megawatt (MW) plant, located on the banks of Cauvery River in Karnataka. The company's 12-MW plant, which was scheduled to commence operations in August 2006, was commissioned in February 2008, because of damage caused to the dam by heavy flooding. ABPL has a take-or-pay power purchase agreement with CESC, with an annual escalation clause for 10 years. The 4-MW tail-race power plant commenced operations in November 2009. For 2008-09 (refers to financial year, April 1 to March 31), ABPL reported a net loss of INR26 million on a turnover of INR139 million, against a net loss of INR99 million on a turnover of INR0.9 million for the previous year. CHHABI ELECTRICALS: ICRA Places 'LBB' Rating on INR8.9MM Term Loan ------------------------------------------------------------------ ICRA has assigned 'LBB' rating to the INR8.9 million term loan facilities and INR55 million cash credit facilities of Chhabi Electricals Private Limited. The outlook on the long term rating is stable. ICRA has also assigned the 'A4' rating to the INR 45 million non-fund based facilities of CEPL. The ratings are supported by the long standing experience of the promoters and CEPL's order book position which provides some revenue visibility for the current fiscal. Moreover the ratings also factor in CEPL's established track record and its strong relationship with its client base confirmed by the high percentage of repeat clients (~72%) in its current order book. The ratings are however constrained by CEPL's small scale of operations and the stretched financial profile as reflected in its poor liquidity position and weak capital structure. The ratings also take into consideration the significant competitive pressures that the company faces in the DC power system's business as evidenced by its declining bid-success ratio over the last three fiscals. Further CEPL's profitability and return indicators continue to remain sensitive to unfavorable fluctuations in the prices of steel and copper given the fixed price nature of most of the contracts executed by it. ICRA also notes that projects executed by CEPL are generally a small portion of larger EPC contracts wherein document approvals, delivery and site trials are generally contingent upon the progress of the larger contracts. As a result any delays in the execution of the main projects have a direct impact on the progress of orders executed by CEPL often necessitating increased investments in working capital owing to sticky debtors and high inventory levels. Set up in 1965 by Mr. Madhusudan Rane, Chhabi Electricals Private Limited is a manufacturer of AC (alternating current)/DC (direct current) power supply components and systems. The company is headquartered in Mumbai with its manufacturing facility located in Jalgaon, Maharashtra . As per the unaudited results for the financial year ending March 31, 2010, the company recorded profit after tax of INR3.3 million over an operating income of INR205.7 million. ETC AGRO: CRISIL Assigns 'BB' Rating on INR200 Million LT Loan -------------------------------------------------------------- CRISIL has assigned its 'BB/Stable' rating to ETC Agro Processing (India) Pvt Ltd's bank facilities. Facilities Ratings ---------- -------- INR200.0 Million Long Term Loan BB/Stable (Assigned) INR100.0 Million Proposed Long BB/Stable (Assigned) Term Bank Loan Facility The rating reflects ETC Agro's below-average financial risk profile, constrained by low net worth, high gearing, and average debt protection indicators, and exposure to risks related to successful stabilisation of capacity and to concentration of revenues in Parle Products Pvt Ltd. These rating weaknesses are partially offset by the benefits that ETC Agro derives from its promoter's strong association and fixed annual offtake agreement with Parle, and from integrated operations. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of ETC Agro and its wholly owned subsidiary Greenfield Impex Pvt Ltd, on account of significant financial, management, and operational linkages between the two companies. Outlook: Stable CRISIL believes that ETC Agro will continue to have healthy revenue growth backed by the stabilization of production and growing demand from Parle for sourcing its biscuits and other wheat-based products. The outlook may be revised to 'Positive' if ETC Agro's newly set up manufacturing capacities are successfully stabilized, resulting in higher than expected cash accruals, and subsequent improvement in the capital structure and overall financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company's revenues or realizations decline sharply, or if it faces delays in stabilization of operations, resulting in difficulty in timely repayment of term debt obligations over the medium term. About ETC Agro ETC Agro incorporated in 2007-08 (refers to financial year, April 1 to March 31) is jointly promoted by Mr. Vijay Doshi, ETC group (ETC Export Trading Co and Ltd; Africa), and Kiewe Services (a subsidiary of Glencore International based in Rotterdam, Netherlands). The company set up an integrated biscuit manufacturing plant in Memadabad (Gujarat). The plant commenced operations in Oct 09. It produces wheat flour, glucose biscuits, and cream biscuits for Parle. ETC Agro reported a consolidated profit after tax (PAT) of INR19.4 million on net sales of INR514 million for 2008-09 against a PAT of INR12.3 million on net sales of INR331 million for 2007-08. GOWTHAMI SOLVENT: ICRA Reaffirms 'LBB' Rating on INR312.2MM Loan ---------------------------------------------------------------- ICRA has reaffirmed the 'LBB' rating to the INR 312.2 million term loans and the INR 210.0 million cash credit facilities of The Gowthami Solvent Oils Private Limited. The outlook on the rating is stable. ICRA has also reaffirmed the 'A4' rating to the INR21.0 million short term non-fund based facility of TGSOPL. The ratings reflect the company's relatively small scale of operations in the rice bran solvent extraction and spinning operations, fragmented nature of the domestic edible oil industry with availability of several grades of edible oils, intense competition from larger and well-established players in the branded segment, threat from cheaper substitutes (particularly palm oil), current limited market presence restricted to Orissa and Andhra Pradesh and exposure to cyclicality of feedstock leading to constraints in passing on cost variations to its customers resulting in volatility in profit margins. The ratings also factor in the weak profitability in the oil processing business, stretched financial profile characterized by high gearing, low coverage indicators and moderate liquidity position. Nevertheless, the prospects of rice bran oil (RBO) is favorable owing to its significant health benefits, competitive pricing as compared to other edible oils such as soya bean and sunflower. The ratings also factor in the company's presence in finer count yarns, aiding better realizations. About Gowthami Solvent The Gowthami Solvent Oils Private Limited was incorporated in 1974 by the Gowthami Group of Companies as a solvent extractor of sunflower and rice bran oil (RBO) with a capacity of 400 tons per day (tpd). The company also has a crude oil refinery for further value addition with a refining capacity of 60 tpd. The company also has a 2.75 MW co-generation biomass power plant and a 28,800 spindle cotton spinning facility. The facilities of TGSOPL are located in Tanuku (Andhra Pradesh). The company has recorded a net profit of INR46.1 million on an operating income of INR1412.8 million for the year ending March 31, 2009. Recent Results (Unaudited) For the first nine months of financial year 2009-10, the company has reported a net profit of INR 39.3 million on an operating income of INR869.4 million. LAQSHYA MEDIA: Default in Loan Repayment Cues CARE 'C' Ratings -------------------------------------------------------------- CARE revises ratings assigned to Bank Facilities of Laqshya Media Private Ltd. Amount Facilities (INR crore) Rating ---------- ----------- ------ Long-term Bank Facilities 72.47 'CARE C' Revised from CARE BB+ Short-term Bank Facilities 17.00 'PR4 Reaffirmed Rating Rationale The ratings reflect delay by LMPL in servicing its term debt obligation in past which was subsequently regularized. The delays were caused by weak liquidity, resulting from delay in realization of receivables stemming from slowdown. Further the rating also considers the default on repayment obligations of term loan in subsidiary, Laqshya Hyderabad Airport Media Pvt Ltd. The ratings however consider experience of the promoters and private equity infusions used for expansions in the business in the past. Ability of LMPL to restructure its existing term loans, ensure regularization of delays and restructuring of the term loan of its subsidiary LHAMPL, manage liquidity, arrange for equity infusions in near future, successfully implement existing projects without time and cost overrun and ensure self-sustainability of LHAMPL are the key rating sensitivities. Incorporated in 1997, Laqshya Media Pvt Ltd is engaged in Out of Home (OOH) media advertisement business which includes ads that can be viewed outdoors or indoors in retail, commercial and transit environments. Late realizations from its debtors coupled with lack of further equity infusions from Private Equity (PE) players as anticipated resulted in liquidity issues for the company which in turn led to delay in repayment of term debt obligations in the past which were subsequently regularized. However, till the company gets fresh equity funds and turns profitable, it likely to face liquidity issues in future as well. Net sales for FY09 were at INR91.98 crore with loss of INR103.02 crore at PAT level. During the nine months period ended December 31, 2009, LMPL posted sales of INR61.2 crore and Loss before tax of INR7.49 crore. LAQSHYA HYDERABAD: CARE Rates INR30cr Long Term Loan at 'D' ----------------------------------------------------------- CARE revises rating to Bank Facilities of Laqshya Hyderabad Airport Media Private Ltd Amount Facilities (INR crore) Rating ---------- ----------- ------ Long-term Bank Facilities 30 CARE D Revised From BB+(SO) Rating Rationale The revision in ratings reflects the ongoing delays in servicing the term loan obligations due to liquidity constraints. Laqshya Hyderabad Airport Media Private Ltd, a 99% subsidiary of Laqshya Media Pvt. Ltd. was floated solely for the purpose of managing outdoor advertising at Hyderabad Airport as mandated by the contract with GHIAL. LHAMPL shall build, operate and maintain the media assets at Hyderabad Airport for tenure of seven years. LHAMPL continued to post operating losses due to insufficient advertisement revenues, low occupancy coupled with higher fixed Minimum Annual Guarantee (MAG) payable irrespective of quantum of revenue. Further, delayed collection from debtors led to liquidity issues which resulted in strain in its liquidity position leading to delay on its repayments obligations. Also, the promoter LMPL failed to provide funding to LHAMPL for meeting its debt repayment obligations. During FY09 (five months of operations), on a total income of INR15.08 crore, LHAMPL incurred a net loss of INR7.36 crore. NKCM SPINNERS: CRISIL Assigns 'B+' Ratings on INR30MM LT Loan ------------------------------------------------------------- CRISIL has assigned its 'B+/Stable/P4' ratings to NKCM Spinners Pvt Ltd's bank facilities. Facilities Ratings ---------- -------- INR30.00 Million Long Term Loan B+/Stable (Assigned) INR150.00 Million Cash Credit B+/Stable (Assigned) INR10.00 Million Letter of Credit P4 (Assigned) The ratings reflect NKCM's below-average financial risk profile, and exposure to risks related to intense competition in the yarn segment, large working capital requirements, and modest scale of operations. These rating weaknesses are partially offset by the benefits that NKCM derives from its promoters' experience in the yarn trading and manufacturing business. Outlook: Stable CRISIL believes that NKCM will continue to benefit from its promoters' industry experience. The outlook may be revised to 'Positive', if NKCM's financial risk profile improves, backed by a sustained improvement in profitability and capital structure. Conversely, the outlook may be revised to 'Negative', if the company's volumes or margins decline because of power shortage, it fails to stabilize its operations post modernization of its newly acquired manufacturing unit, or if it undertakes large, debt- funded capital expenditure program. About NKCM Spinners NKCM, incorporated in 2008, manufactures and trades in cotton, polyester, viscose and blended yarn. The company operates 58000 spindles, out of which 51000 spindles are leased. All the spinning units are located in and around Erode, Tamil Nadu. The company was formed after the merger of three partnership firms - Narendra Kumar Cotton mills, NKCM Textiles and NKCM Spinners - each jointly owned by the Nakhat and Mittal families of Erode, Tamil Nadu. In 2009, NKCM acquired KAS Spinning mills, which has about 7000 spindles, for about INR40 million. NKCM is likely to modernise the acquired unit; the project cost is estimated to be about INR150 million. NKCM reported a profit after tax (PAT) of INR2.6 million on net sales of INR915 million for 2008-09 (refers to financial year, April 1 to March 31). RATAN MOTORS: CRISIL Rates INR120.0 Million Cash Credit at 'BB-' ---------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable' rating to Ratan Motors' bank facilities. Facilities Ratings ---------- -------- INR120.0 Million Cash Credit BB-/Stable (Assigned) INR30.0 Million Proposed Long BB-/Stable (Assigned) Term Bank Loan Facility The rating reflects Ratan Motors' weak financial risk profile marked by a small net worth and large working capital requirements, and susceptibility to intense competition in the automotive dealership market. These weaknesses are partially offset by the firm's established market position in the automobile dealership market in Mumbai and Pune (Maharashtra), and its promoters' experience in the automobile dealership business. Outlook: Stable CRISIL believes that Ratan Motors will continue to generate sufficient cash accruals over the medium term. The outlook may be revised to 'Positive' if Ratan Motors improves its profitability, most likely driven by increased revenues from services and spares in addition to increased offtake of vehicles. Conversely, the outlook may be revised to 'Negative' if the firm's financial risk profile deteriorates because of a weakening of liquidity, larger- than-expected debt-funded capital expenditure, or less-than- expected offtake for its products and services. About Ratan Motors Ratan Motors is an authorized dealer of passenger cars of Maruti Suzuki India Ltd (MSIL, rated 'AAA/Stable/P1+' by CRISIL), and heavy commercial vehicles (trucks) of Eicher Motors Ltd. Ratan Motors derives 60 per cent of its revenues from MSIL and the rest from Eicher. Ratan Motors has been an authorized dealer of Eicher since 1991, and of MSIL since 1997. Ratan Motors is estimated to have generated a profit after tax (PAT) of INR25 million on net sales of INR876 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR3.8 million on net sales of INR1,210 million for 2007-08. SENTINI BIOPRODUCTS: ICRA Reaffirms 'LBB+' Rating on INR400MM Loan ------------------------------------------------------------------ ICRA has reaffirmed the 'LBB+' rating to INR400 million term loans and INR450 million fund based limits of Sentini Bioproducts Pvt Ltd. ICRA has also assigned a Stable outlook on the long term ratings. ICRA has also reaffirmed the A4+ rating, to INR30 million non- fund based limits of SBPL. The ratings are constrained by the regulated nature of the alcohol industry, the company's limited track record of operations, vulnerability of profitability to agricultural commodity price cycles and expected increase in business risk profile due to aggressive expansion plans in Indian Made Foreign Liquor (IMFL) business and the proposed debt funded branding initiatives, whose payoffs could be over an extended period of time. However, ICRA has taken due note of the favorable prospects for the usage of grain alcohol over the long term due to better quality and high growth anticipated in the premium liquor, location advantage being one of the few South based grain distilleries and comfortable financial position of promoter group companies. About Sentini Bioproducts Sentini Bioproducts (Pvt) Ltd was set up by the Sentini Group of companies in 2006 tomanufacture grain based Potable Alcohol (Extra Neutral Alcohol. The group's two primary business activities are ceramic tiles (through flagship company Sentini Cermica), IT/IT enabled services (through Sentini Technologies) apart from automobile body building and spare parts. SBPL commissioned a 45000 KL per annum (120000 litres per day) ENA plant in Vijaywada (AP) in 2008-09. SBPL manufactures ENA from Yellow corn/ Maize and sells the same to Indian Made Foreign Liquor manufacturers located across Southern and East/North Eastern states. In FY2009-10, SBPL reported a net profit of INR30.7 million on an operating income of INR1.44 billion. SHIVA TEXFABS: ICRA Cuts Rating on INR730 Million LT Loans to 'LB' ------------------------------------------------------------------ ICRA has revised the long term rating assigned earlier to INR730 million long term fund-based limits and INR2,170 million long-term loan of Shiva Texfabs Limited from 'LBB+' to 'LB'. ICRA has also revised the short term rating from 'A4+' to 'A5' assigned earlier to the INR300 million short term non-fund based limits of STL. The revision in ratings reflects irregularity in debt repayment and aggressive capital structure. The rating continues to be constrained limited by pricing power, commoditized nature of product and high competitive intensity. On account of 104% growth in operating income during 2008-09 and high working capital intensity, the company generated negative funds from operations. Continued project capex has kept the gearing high despite equity infusion of INR445 million. The debt coverage indicators have deteriorated. The ratings however derive support from the promoter's long experience in this business. ICRA has positively factored in the commencement of polyester fiber manufacturing plant that is expected to improve operating profitability. Going forward ICRA shall positively factor in timely debt repayments, improvement in operating profitability and lower gearing. About Shiva Fabricators Incorporated in 1993 as Shiva Fabricators Private Limited, Shiva Texfabs Limited was promoted by (Late) Mr. B. K. Malhotra with his son Mr. Akhil Malhotra. STL is in the business of manufacturing and selling cotton yarn, blended synthetic yarn and acrylic yarn. The company also has presence in manufacturing of ready-made garment in a small way. The company started commercial production in the year 1996 with an initial installed capacity of 1,600 spindles for manufacturing of acrylic and acro-polyester yarn and undertook expansion programme from time to time. Currently STL has installed capacity of about 86,000 spindles, which are being used for manmade-fiber-based and cotton-based products. STL commences commercial production of polyester fiber in 2009-10 using waste PET bottles as raw material. A significant chunk of STL's revenue comes from knitted cloth that the company gets knitted from third parties. SMS STEELS: CRISIL Assigns 'B' Ratings on Various Bank Facilities ----------------------------------------------------------------- CRISIL has assigned its 'B/Stable' rating to SMS Steels Pvt Ltd's bank facilities. Facilities Ratings ---------- -------- INR40.00 Million Cash Credit B/Stable (Assigned) INR125.00 Million Term Loan B/Stable (Assigned) The rating reflects SSPL's weak financial risk profile marked by small net worth, high gearing, and weak liquidity, and exposure to risks related to implementation and commercialization of its pig iron plant, and to large maturing debt obligations in the near term. These rating weaknesses are partially offset by the benefits that SSPL derives from its promoters' experience in the steel industry. Outlook: Stable CRISIL believes that SSPL will continue commercial operations at its new plant as scheduled without any further time or cost overruns. The outlook may be revised to 'Positive' if SSPL generates sizeable revenues and profits, post stabilization of its operations. Conversely, the outlook may be revised to 'Negative' if the company faces delays in commissioning its project, funding support from promoters reduces, or if quantum of debt contracted to fund capital expenditure is more than expected. About SMS Steels SSPL was set up in 2004. Currently the promoters are setting up 49,000 tonnes per annum (tpa) pig iron plant under this company in Khudavandpur (Andhra Pradesh). The total cost of the project is around INR190 million, and will be funded with debt of INR125 million, equity of INR60 million, and unsecured loans of INR5 million. The plant is expected to commence commercial operations in May 2010. The company plans to set up sinter plant which will be used to process fine grain raw material into coarse grained iron ore sinter for charging the blast furnace. The total cost of the project is expected to be around INR200 million and the same will be funded in a debt-to-equity ratio of 2:1. The company plans to commence implementation of this project in three months. SUGUNA RAMAIAH: CRISIL Places 'BB' Ratings on INR103MM LT Loan -------------------------------------------------------------- CRISIL has assigned its rating of 'BB/Stable' to the bank facilities of Suguna Ramaiah Hospitals Pvt Ltd. Facilities Ratings ---------- -------- INR103.00 Million Long Term Loan BB/Stable (Assigned) INR9.00 Million Cash Credit BB/Stable (Assigned) The rating reflects SRHL's below-average financial risk profile, and exposure to risks relating to small scale of operations and limited track record in the health-care industry, and to geographic concentration in revenue profile. These weaknesses are, however, partially offset by the benefits that the company derives from its promoters' experience in the healthcare industry, and from its improving operating efficiencies. Outlook: Stable CRISIL believes that SRHL will maintain a stable credit risk profile supported by improving occupancy levels. The outlook may be revised to 'Positive' if the company's revenues and profitability increase considerably. Conversely, the outlook may be revised to 'Negative' if SRHL's occupancy levels or operating margins decline sharply, or if the company undertakes large, debt- funded capital expenditure. About Suguna Ramaiah Set up in February 2004 by Dr. R Ravindra (an orthopaedic surgeon), and wife Dr. Sujatha (a gynaecologist), SRHL commenced commercial operations in September 2006. The hospital has around 75 consultant doctors, in addition to around 20 resident doctors. A tertiary care hospital with a capacity of 117 beds, SRHL offers multi-specialty treatment across disciplines such as medicine and surgery. SRHL reported a net loss of INR2.3 million on net sales of INR152.6 million for 2008-09 (refers to financial year, April 1 to March 31), as against a net loss of INR4.9 million on net sales of INR110.9 million for 2007-08. TUBEKNIT FASHIONS: ICRA Downgrades LT Rating on Loans to 'LB' ------------------------------------------------------------- ICRA has revised the long term rating assigned to INR71.5 million term loans and INR425.0 million fund-based bank facilities of Tubeknit Fashions Limited to 'LB' from 'LBB-'. ICRA has also revised TKFL's short-term rating for the INR62.5 million non-fund based limits from A4 to A5. The revision in the ratings takes into account delays in debt servicing by the company, driven by the downturn in the Indian textile industry and company specific liquidity issues. TKFL's high concentration in the European markets and moderate revenue concentration from relatively fewer customers continues to be key rating constraints. However, the ratings take comfort from the experience of TKFL's promoters in the manufacture and export of garments and the company's presence in relatively higher margin "high style" garments. About Tubeknit Fashions Promoted in 1985, as a partnership firm, by first generation entrepreneurs, Mr. P. Parthasarathy and Mr. Palaniswamy under the name Tubetex Exports, TKFL was mainly undertaking dyeing of yarns and grey fabric on a conversion basis for other garment units in Tirupur. The firm diversified into the manufacture and export of knitted garments in 1990. Following the exit of Mr. Palaniswamy, one of the partners in 1995, the firm was fully owned and managed by Mr. Parthasarathy and his wife Ms. Maheswari. Tubetex Exports was converted to a private limited company in 1996 and later to a public limited company in 1999. Currently TKFL has four factories located in and around Tirupur and has capacities along the entire textile value chain except for spinning. TKFL has positioned itself as a high style garments manufacturer operating in low volume and relatively high margin segment. VEDIKA CREDIT: Low Net Worth Cues CRISIL's 'B+' Ratings on Loans ---------------------------------------------------------------- CRISIL has assigned its 'B+/Stable' rating to the bank facilities of Vedika Credit Capital Ltd. Facilities Ratings ---------- -------- INR230 Million Long Term Bank B+/Stable (Assigned) Loan Facility INR35 Million Cash Credit Facility B+/Stable (Assigned) INR35 Million Proposed Long Term B+/Stable (Assigned) Bank Loan Facility The rating reflects Vedika's promoters' limited experience and the company's small presence in the microfinance business, with regional concentration of operations, its modest financial risk profile marked by low net worth and high operating expenses, and its exposure to risks inherent in the microfinance industry. These rating weaknesses are partially offset by the company's sound asset quality marked by low delinquency levels. Outlook: Stable CRISIL believes that Vedika will benefit from the growth opportunities in the microfinance sector. However, given the promoters' limited experience in the sector, their ability to grow the business, and accordingly scale up systems and processes to manage asset quality and operating expenses, needs to be demonstrated. The outlook could be revised to 'Positive' if Vedika exhibits sustained profitable growth without compromising on its asset quality. Conversely, the outlook could be revised to 'Negative' if Vedika is unable to raise adequate resources to fund its planned growth, or is not able to maintain asset quality as it expands its operations. About Vedika Credit Incorporated in 1995, Vedika is a non-deposit-taking non-banking financial company registered with the Reserve Bank of India. Vedika lends to joint-liability groups, and provides top-up loans to clients, in and around Ranchi (Jharkhand). It entered into the microfinance business in 2007, before which, it was involved in two-wheeler financing. As on March 31, 2010, Vedika had a borrower base of 17,886 members across 14 branches in 8 districts of Jharkhand. For 2008-09 (refers to financial year, April 1 to March 31), Vedika reported a profit after tax (PAT) of INR3.3 million on a total income of INR57.4 million, against a PAT of INR2.1 million on a total income of INR45.7 million for the previous year. For the nine months ended December 31, 2009, Vedika's PAT was INR3.4 million on a total income of INR41 million. ========= J A P A N ========= CAFES 3: Moody's Reviews Ratings on Various Classes of Notes ------------------------------------------------------------ Moody's Investors Service has placed on review for possible downgrade the ratings for the Class A through F and X trust certificates issued by Cafes 3. The final maturity of the trust certificates will take place in August 2014. The individual rating actions are listed below. -- Class A, Review for Possible Downgrade; previously, Confirmed at Aaa on June 12, 2009 -- Class B, Review for Possible Downgrade; previously, Downgraded to Aa3 from Aa2 on June 12, 2009 -- Class C, Review for Possible Downgrade; previously, Downgraded to A3 from A2 on June 12, 2009 -- Class D, Review for Possible Downgrade; previously, Downgraded to Ba1 from Baa2 on June 12, 2009 -- Class E, Review for Possible Downgrade; previously, Downgraded to B2 from Baa3 on June 12, 2009 -- Class F, Review for Possible Downgrade; previously, Downgraded to B2 from Ba2 on June 12, 2009 -- Class X, Review for Possible Downgrade; previously, Confirmed at Aaa on June 12, 2009 Cafes 3, effected in November 2007, represents the securitization of six non-recourse loans and four specified bonds. One of the non-recourse loans has been repaid in full, and the transaction is currently secured by six Loans and three loans that have been under special servicing thus far. The loan that defaulted in October 2009 is backed by two office buildings in large cities, including Tokyo. The other two loans that defaulted in April 2010 are backed by three office buildings and five retail buildings in Tokyo. The review has been prompted by Moody's growing concerns about the need to apply 1) higher stress on the recovery assumptions for the three loans under special servicing, in view of current disposal prices, and 2) further stress on the performance of the collateral backing the other loans in light of the deteriorating occupancy rates for some of the properties. In its review, Moody's will examine the latest appraisal reports, as well as additional data, including PM reports, on the properties' leasing status and performances. Moody's will also continue to monitor the special servicer's servicing strategies and the prospects for recovery of the loans under special servicing. 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. GODO KAISHA: S&P Downgrades Ratings on Floating-Rate Notes ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the floating-rate notes, classes D to F, issued by Godo Kaisha ORSO Funding CMBS 6 in March 2007. At the same time, S&P placed on CreditWatch with negative implications its ratings on classes A to F. S&P also affirmed its ratings on class X issued under the same transaction. The transaction was initially backed by four TMK bonds and two loans issued by/extended to six obligors. As the two loans (representing a combined 36.9% or so of the total issuance amount of the notes) have been repaid, only four TMK bonds remain. For three of the four remaining TMK bonds, S&P take the view that there appears to be uncertainty over the recovery prospects of the related collateral properties considering the performance of the related properties, based on the possibility that the TMK bonds may not be redeemed and the properties may need to be liquidated. Although S&P has yet to finalize its assessment of the recovery prospects of the properties, S&P downgraded classes D to F and placed its ratings on classes A to F on CreditWatch with negative implications because it is its view that a certain level of decline in the likely recovery amount from the properties appears inevitable. The transaction's remaining TMK bonds that S&P reviewed consist of: * A TMK bond maturing in January 2011 (representing about 17.1% of the total initial issuance amount of the notes), which is backed by two hotels; * A TMK bond maturing in October 2011 (representing about 9.1% of the total initial issuance amount of the notes), which is backed by a rental condominium building on the outskirts of Tokyo; and * A TMK bond maturing in October 2011 (representing about 30.1% of the total initial issuance of the notes), which is backed by a office/rental condominium building located in Tokyo; S&P intends to review its ratings on the six classes that S&P placed on CreditWatch with negative implications after completing its assessment of the recovery prospects of the properties backing the aforementioned three TMK bonds. Godo Kaisha ORSO Funding CMBS 6 Trust is a multi-borrower CMBS transaction. The floating-rate notes were initially secured by four TMK bonds and two loans issued by/extended to six obligors. The TMK bonds were originally backed by 32 real estate properties. The transaction was arranged by Bear Stearns (Japan) Ltd., Tokyo Branch. Premier Asset Management Co. 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 in November 2013 for the class A notes, the full payment of interest and ultimate repayment of principal by the legal final maturity date for the class B to F notes, and the timely payment of available distribution until the earlier of the legal final maturity date or the termination of the TK agreement for the interest-only class X TK Distribution. Ratings Lowered, Placed On Creditwatch Negative Godo Kaisha ORSO Funding CMBS 6 JPY29.9 billion floating-rate notes due November 2013 Class To From Initial Issue Amount ----- -- ---- -------------------- D BB/Watch Neg BBB JPY3.6 bil. E B/Watch Neg BB JPY3.0 bil. F B/Watch Neg BB- JPY0.2 bil. Ratings Placed On Creditwatch Negative Godo Kaisha ORSO Funding CMBS 6 Class To From Initial Issue Amount ----- -- ---- -------------------- A AAA/Watch Neg AAA JPY16.0 bil. B AA/Watch Neg AA JPY3.5 bil. C A/Watch Neg A JPY3.6 bil. Rating Affirmed Class Rating ----- ------ X (TK distribution) AAA The issue date was March 19, 2007. JAPAN AIRLINES: South Korea Fines 19 Airlines for Price Fixing -------------------------------------------------------------- Bloomberg News reports that the Fair Trade Commission of South Korea has fined Japan Airlines Corp., Korean Air Lines Co. and 17 other airlines for fixing cargo shipment rates. Bloomberg News, citing the South Korean antitrust agency in an e-mailed statement, relates that the carriers will be fined KRW120 billion (US$97 million). Scandinavian Airlines and Air India were given warnings, it said. The Wall Street Journal relates the FTC said unfair practices resulted in about KRW6.7 trillion worth of sales losses in the South Korean airline market. According to the Journal, the FTC said Korean Air Lines has been slapped with a KRW48.7 billion fine and Asiana Airlines Inc. has been fined KRW20.7 billion. Other airlines facing fines include Japan Airlines International Co., a unit of Japan Airlines Corp.; Lufthansa AG; Cathay Pacific Airways Ltd.; Singapore Airlines Ltd.; and Air France, part of Air France-KLM. The Journal notes that the FTC said the airlines first tried to introduce fuel surcharges through the International Air Transport Association in the late 1990s for all carriers, but were not allowed to do so. The airlines then resorted to unfair trade practices to introduce and raise surcharges. About Japan Airlines 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) J-CORE 14: Moody's Reviews Ratings on Nine Classes of Notes ----------------------------------------------------------- Moody's Investors Service has placed nine classes of J-CORE 14 Trust Certificates and asset-backed loans under review for possible downgrade. The final maturity will take place in November 2014. The individual rating actions are listed below. -- Class A Trust Certificate, Aaa Placed Under Review for Possible Downgrade; previously on April 30, 2008 Definitive Rating Assigned Aaa -- Class A Loan, Aaa Placed Under Review for Possible Downgrade; previously on April 30, 2008 Definitive Rating Assigned Aaa -- Class B Trust Certificate, Aa2 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Confirmed at Aa2 -- Class C Trust Certificate, A3 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Downgraded to A3 -- Class C Loan, A3 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Downgraded to A3 -- Class D Trust Certificate, Baa3 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Downgraded to Baa3 -- Class E Trust Certificate, Ba2 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Downgraded to Ba2 -- Class F Loan, B1 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Downgraded to B1 -- Class X Trust Certificate, Aaa Placed Under Review for Possible Downgrade; previously on April 30, 2008 Definitive Rating Assigned Aaa J-CORE14 is a single-asset/single-borrower CMBS deal effected in April 2008. The collateral is a full service hotel in Tokyo. Dividend distributions and interest on the rated Trust Certificates and Loans will be paid out of the rental income from the asset. If an event of default occurs, the property will be sold and the proceeds will be used to pay down the principal. Moody's considers it highly likely that the property's profitability will fall below Moody's assumptions, given the decline in performance since the last rating action on July 13, 2009. Thus, in its review, Moody's will re-assess its estimates for net cash flow and property value. Moody's also plans to interview the asset manager on its operating and refinancing strategies, as well as its disposal efforts, in light of the specified bond's expected maturity in 2012. 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. J-CREM 2: Moody's Reviews Ratings on Seven Classes of Notes ----------------------------------------------------------- Moody's Investors Service has placed seven classes of J-CREM 2 Trust Certificates on review for possible downgrade. The final maturity of the Trust Certificates will take place in March 2014. The individual rating actions are listed below. -- Class A, Aaa Placed Under Review for Possible Downgrade; previously on August 31, 2007 Definitive Rating Assigned Aaa -- Class B, Aa2 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Confirmed at Aa2 -- Class C, A3 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Downgraded to A3 from A2 -- Class D, Baa3 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Downgraded to Baa3 from Baa2 -- Class E, B1 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Downgraded to B1 from Ba2 -- Class F, B2 Placed Under Review for Possible Downgrade; previously on July 13, 2009 Downgraded to B2 from Ba3 -- Class X, Aaa Placed Under Review for Possible Downgrade; previously on August 31, 2007 Definitive Rating Assigned Aaa J-CREM 2 Trust is a single-asset/single-borrower CMBS deal effected in August 2007. The underlying property of the transaction is a full service hotel located outside of Tokyo. According to the servicer reports, the DSCR tests of the specified bond conducted -- based on the hotel operating cash flows -- has remained lower than the level defined in the conditions of the specified bond for four consecutive quarters. Moody's considers it highly likely that the property's profitability will fall -- and remain -- below its Moody's assumptions due to the declining performance; thus, Moody's will re-assess its estimates for net cash flow and property value. As part of its review, Moody's will additionally receive updated data regarding the hotel operations from the servicer and monetary trustee, and will conduct interviews with the asset manager regarding past hotel operations, future operation strategies, refinancing strategies, and disposal activities, in light of the specified bond's maturity in March 2012. 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. L-JAC 4: Moody's Reviews Ratings on Various Classes of Bonds ------------------------------------------------------------ Moody's Investors Service has placed on review for possible downgrade the ratings for the Class A-2 through G-3 Bonds issued by L-JAC 4 Funding and Class X-1/X-2 Trust Certificates. The final maturity of the bonds and trust certificates is due in May 2015. The individual rating actions are listed below. -- Class A-2, Aa2 placed under review for possible downgrade; previously downgraded to Aa2 from Aaa on July 7, 2009 -- Class B-2, A1 placed under review for possible downgrade; previously downgraded to A1 from Aa2 on July 7, 2009 -- Class C-2, A3 placed under review for possible downgrade; previously downgraded to A3 from A2 on July 7, 2009 -- Class D-3A, Ba1 placed under review for possible downgrade; previously downgraded to Ba1 from Baa2 on July 7, 2009 -- Class D-3B, Ba1 placed under review for possible downgrade; previously downgraded to Ba1 from Baa2 on July 7, 2009 -- Class E-3, Ba2 placed under review for possible downgrade; previously downgraded to Ba2 from Baa3 on July 7, 2009 -- Class F-3, Ba3 placed under review for possible downgrade; previously downgraded to Ba3 from Ba1 on July 7, 2009 -- Class G-3, B1 placed under review for possible downgrade; previously downgraded to B1 from Ba2 on July 7, 2009 -- Class X-1, Aa2 placed under review for possible downgrade; previously downgraded to Aa2 from Aaa on July 7, 2009 -- Class X-2, Aa2 under review for possible downgrade; previously downgraded to Aa2 from Aaa on July 7, 2009 L-JAC4, effected in May 2007, represents the securitization of non-recourse loans to five borrowers. The transaction is currently backed by a loan. The underlying property of the loan is a full service hotel located outside of Tokyo. Moody's has received servicer reports which indicate that the debt service coverage ratio on the remaining loan has remained lower than the standard level as defined under the loan agreement for the last three quarters. Moody's considers it highly likely that the property's profitability will fall -- and remain -- below its Moody's assumptions due to the declining performance; thus, Moody's will reassess its estimates for net cash flow and property value. Moody's will additionally receive updated data regarding hotel operations from the servicer. It will review the value of the underlying property and re-estimate the property net cash flow backed by the profitability of the hotel operation. Moody's will also monitor the strategies and profit prospects for the new operator which was first engaged in May 2010. 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. ==================== N E W Z E A L A N D ==================== CANTERBURY MORTGAGE: To Repay Investors Another 5 Cents in July --------------------------------------------------------------- The Canterbury Mortgage Trust is expecting to pay investors another 5 cents on the dollar at the end of July, taking the repayment to 74c, Marta Steeman at BusinessDay.co.nz reports. It is not making interest repayments. According to the report, Don McBeath, chairman of the trust fund's manager, Fund Managers Canterbury Ltd, said Fund Managers was working on recovering the more difficult loans now and a number of mortgages were falling due in the next few months. "Hopefully they will get repaid, if they don't we will work on those as well. Unfortunately, people are still having great difficulty, and almost finding it impossible to refinance," the report quoted Mr. McBeath as saying. "In the latest accounts, the expected recovery based on all the provisions we have made and a careful assessment at the time was around 90c, I think. We certainly are going to endeavour to recover more than that but I really can't comment on the likelihood of that happening at this stage," Mr. McBeath said. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 24, 2009, Canterbury Mortgage Trust decided to wind up its frozen mortgage fund with the aim of returning NZ$251 million owed to 4,500 investors. The trust warned investors in its annual report last year that it had made a worst-case scenario provision of $46.7m for bad loans. That meant investors might get only 88 cents in the dollar back. About Canterbury Mortgage Formed in 1999 and with NZ$266 million of funds under management, Canterbury Mortgage Trust offers an alternative fixed interest investment. The Trust provides managed mortgage investments and mortgage finance throughout New Zealand. In recent times, the Trust has experienced some contraction due to a number of finance company collapses, and a softening property market. SOUTH CANTERBURY: Allan Hubbard Appointed as President for Life --------------------------------------------------------------- Allan Hubbard, the chairman and controlling shareholder of South Canterbury Finance Limited, has decided to become President for Life and step aside as a director of the Company. The position has been created to reflect his special role and contribution to the Company over several decades, and which continues to endure. Mr. Hubbard indicated at last year's Annual Meeting of the Company that he intended to step aside as Chairman of the board sometime this year. Moving into his new position as President for Life will enable a greater focus on finding a new equity partner for the Company and assist the drive to improve liquidity. Commenting on his decision, Mr. Hubbard says: "Significant achievements have been made by the board and new management team in the last six months to put the business on a sound footing. I am confident the decisions being taken will restore South Canterbury Finance as a leading provider of finance for business development beyond the traditional banking sector" "There are two important tasks ahead: to work with the board and management to overcome the short-term liquidity issues that have arisen as an unintended consequence of the initial Crown retail deposit guarantee and secondly to find an equity partner for South Canterbury Finance to achieve an orderly succession and underpin the long term future of the business." Mr. Hubbard says South Canterbury Finance has impacted the lives of many people over the years by providing resources at crucial times to support their endeavors. "It is essential to the New Zealand economy that firms such as South Canterbury Finance are able to continue in this role." In the years he has chaired South Canterbury Finance, Mr. Hubbard has transformed the business from a small local finance company into one of the country's leading players in the non-banking finance sector. "The South Canterbury Finance story is remarkable, and a tribute to the dedication of Allan, his wife and co-owner Jean and the people who have worked with him over the years," Chief Executive Officer Sandy Maier says. "He has made an enormous contribution by his far-sighted decisions to support the growth of New Zealand's backbone industries. An acknowledgement of that was the recent presentation of the Ron Cocks Memorial Award for his contribution to the irrigation schemes that are now the basis of much of Canterbury's wealth. But critically, Allan has used the resources of South Canterbury Finance to help people and to help them achieve their ambitions. He has worked tirelessly for a very long time and he continues to do so despite being in his eighties. This is a change in his role and not a retirement." As President for Life, Mr. Hubbard will continue to attend South Canterbury Finance board meetings. The directors will convene in the near future to appoint a new Chairman of South Canterbury Finance. In a separate development, Mr. Edward Sullivan said he will retire as a director of South Canterbury Finance with effect from May 31, 2010. About South Canterbury Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA) -- http://www.scf.co.nz/-- is engaged in the provision of financial services. The Company's principal activities are borrowing funds from public and institutional investors and on- lending those funds to the business, plant and equipment, property, rural and consumer sectors. It typically advances funds by means of hire purchase, floor plans, leasing of plant, vehicles and equipment, personal loans, business term loans and revolving credit facilities, mortgages against property, and other financial instruments, including consumer loan insurance. Southbury Group Limited holds a controlling interest in the Company. Its subsidiaries include Ashburtin Finance Ltd, Auckland Finance Ltd, Canterbury Finance Ltd, Coversure Guarantee Ltd, Face Finance Ltd, Helicopter Nominees Ltd, Hotnchurch Ltd, Otage Finance Ltd, Palmerston North Finance Ltd, Rental cars Ltd, ZSCFG Systems Ltd, Walkato Finance Ltd and Wellington Finance Ltd. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 31, 2010, Standard & Poor's affirmed its short term credit rating of B, removed the Creditwatch Negative outlook and adjusted the long term rating to B+. The outlook for both ratings has been set at Creditwatch Developing. SOUTH CANTERBURY: Ratings Downgrade Won't Affect Crown Guarantee ---------------------------------------------------------------- South Canterbury Finance Limited confirmed Friday that the ratings agency Standard & Poor's has affirmed its short term credit rating of B, removed the Creditwatch Negative outlook and adjusted the long term rating to B+. The outlook for both ratings has been set at Creditwatch Developing. Commenting on the ratings action, Chief Executive Officer Sandy Maier said Standard & Poor's goes some way towards acknowledging the progress South Canterbury Finance has achieved but in the Company's view does not give full credit for the real progress made, particularly the recent momentum in building liquidity. "The Company started its turnaround months ago and is achieving significant results. Our cash balance has increased substantially, the investor retention rate is improving and the programme to reduce the debenture maturity profile between now and October is proving highly popular with investors and is making excellent progress." The programme to manage the maturity profile is being done in two tranches. The first has been very successful with two out of three investors who have responded to date, with debenture investments totaling more than $110 million maturing between now and July, accepting longer dated maturities in advance of maturity. "In essence Standard & Poor's are now saying we are not going fast enough. With all due respect to Standard & Poor's, we believe this misses the point of the turnaround we are pursuing. All along our aim has been to restructure the business in an orderly way to underpin its long term sustainability. Doing so will protect the interests of all investors and stakeholders more effectively than striving to meet the short term goals and expectations of the ratings agency." Mr. Maier said the ratings downgrade does not affect South Canterbury Finance's Crown guarantee under the retail deposit guarantee scheme which expires on December 31, 2011, nor does the downgrade constitute a breach of any covenants under South Canterbury Finance's trust deed or other financial arrangements. "South Canterbury Finance will continue to focus on the milestones it needs to achieve as it makes further progress towards its traditional role of supporting business growth. We acknowledge this will take time and the Company looks forward to regaining a higher credit rating as our milestones are met." About South Canterbury Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA) -- http://www.scf.co.nz/-- is engaged in the provision of financial services. The Company's principal activities are borrowing funds from public and institutional investors and on- lending those funds to the business, plant and equipment, property, rural and consumer sectors. It typically advances funds by means of hire purchase, floor plans, leasing of plant, vehicles and equipment, personal loans, business term loans and revolving credit facilities, mortgages against property, and other financial instruments, including consumer loan insurance. Southbury Group Limited holds a controlling interest in the Company. Its subsidiaries include Ashburtin Finance Ltd, Auckland Finance Ltd, Canterbury Finance Ltd, Coversure Guarantee Ltd, Face Finance Ltd, Helicopter Nominees Ltd, Hotnchurch Ltd, Otage Finance Ltd, Palmerston North Finance Ltd, Rental cars Ltd, ZSCFG Systems Ltd, Walkato Finance Ltd and Wellington Finance Ltd. * * * As reported in the Troubled Company Reporter-Asia Pacific on May 31, 2010, Standard & Poor's affirmed its short term credit rating of B, removed the Creditwatch Negative outlook and adjusted the long term rating to B+. The outlook for both ratings has been set at Creditwatch Developing. ST LAURENCE: Direct Property Investments No. 6 Faces Receivership ----------------------------------------------------------------- Direct Property Investments No. 6, a company associated with St Laurence Ltd, may be facing the prospect of receivership after failing to repay bond investors NZ$9.5 million in February, Sophia Rodrigues writes for the Banking Day. Ms. Rodrigues said the company is currently putting together a proposal to extend terms of the bonds, which will be put to the bondholders for consideration only if the Trustee, Perpetual, believes there is merit. Direct Property Investments No 6 is owned by Direct Property Investments and was not put under receivership when companies belonging to the St Laurence group were, as it is not part of the borrowing group. However, Direct Property Investments is already under receivership. Citing Direct Property's annual statements, the report discloses that the company had flagged the uncertainty it faced relating to its ability to refinance this NZ$9.5 million debt, and indicated it will be forced to sell its investment property if it is unable to refinance. The company also said that given the time required for such a sale, there was a possibility the Trustee might take action, the report adds. About St Laurence Ltd Headquartered in Wellington, New Zealand, St Laurence Limited -- http://www.stlaurence.co.nz/st_laurence.php-- is a property- based funds management and finance company with over NZ$1.2 billion in assets under management. Since 1995 it has been developing and promoting investments, lending to property borrowers, and managing its property assets and investments for its investors. * * * St. Laurence Limited has been placed into receivership, owing 9,000 investors NZ$245 million. The company's trustee, Perpetual Trust, on April 29, 2010, appointed Barry Jordan and David Vance of Deloitte as receivers of St. Laurence and some of its subsidiaries. The receivership does not include the companies which are the managers of The National Property Trust, Irongate Property Limited and its proportionate ownership schemes and syndicates. * NEW ZEALAND: Finance Firm Investors Entitled to Refunds --------------------------------------------------------- The Securities Commission said its investigations into finance companies show that many investors are entitled to refunds on their investments. "Where individuals and companies had broken the law by offering securities to the public without a registered prospectus, investors were entitled to a refund of their principal plus interest," the commission said in a statement Friday. "Investors who did not receive an investment statement before investing may also be able to seek a refund. The commission said investors could take action against both the issuers and the directors personally for recovery of their investment. The amount available may exceed the amounts returned on receivership or liquidation. "The viability of any such action will of course depend upon the financial ability of the issuer or the directors to meet that liability." However, the Commission said investors must take action themselves. "The Commission is not able to take action for them. The Commission strongly recommends that investors seek legal advice as to their entitlements, and the prospects of enforcing those entitlements." The Securities Act requires an issuer to have registered a prospectus before securities are allotted to a member of the public in New Zealand. The issuer must also make sure that the investor has received the related investment statement before that investor subscribes to the offer. If the issuer is offering debt securities, such as debenture stock, the Securities Act also requires there to be a trustee for the investors. There are, however some instances in which the issuer may be excused from the requirements. Following investigation by the Commission a referral to the National Enforcement Unit resulted in a successful prosecution of Ms. Sharon Day and QED Limited in relation to investment offers to the public by QED without a registered prospectus or investment statement. The National Enforcement Unit has also filed similar charges against the directors of Five Star Debenture Nominees Limited. Investigations are continuing into other issuers that may have breached the Act in this way. ================= S I N G A P O R E ================= ACCUVAL SINGAPORE: Creditors' Proofs of Debt Due June 28 -------------------------------------------------------- Accuval Singapore Pte Ltd, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by June 28, 2010, to be included in the company's dividend distribution. The company's liquidators are: Kelvin Thio Terence Ng c/o Ardent Business Advisory Pte Ltd 146 Robinson Road #12-01 Singapore 068909 C.F.H. INSURANCE: Creditors' Proofs of Debt Due June 27 ------------------------------------------------------- C.F.H. Insurance Pte Ltd, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by June 27, 2010, to be included in the company's dividend distribution. The company's liquidators are: Andrew Grimmett Lim Loo Khoon 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 LIFESTYLE & LEISURE: Creditors' Proofs of Debt Due June 31 ---------------------------------------------------------- Lifestyle & Leisure Investments Pte Ltd, which is in members' voluntary liquidation, requires its creditors to file their proofs of debt by June 31, 2010, to be included in the company's dividend distribution. The company's liquidators are: Andrew Grimmett Lim Loo Khoon 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 L&M INFRATECH: Court Enters Wind-Up Order ----------------------------------------- The High Court of Singapore entered an order on May 21, 2010, to wind up the operations of L&M Infratech Pte Ltd. L&M.com Pte Ltd (formerly known as L&M Holdings Pte Ltd) filed the petition against the company. The company's liquidator is: Ms Jessica Toh Wan Quan Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 L&M EQUIPMENT: Court Enters Wind-Up Order ----------------------------------------- The High Court of Singapore entered an order on May 21, 2010, to wind up the operations of L&M Equipment Pte Ltd. L&M.com Pte Ltd (formerly known as L&M Holdings Pte Ltd) filed the petition against the company. The company's liquidator is: Ms Sharizah Shariff Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 L&M PETROMA: Court Enters Wind-Up Order --------------------------------------- The High Court of Singapore entered an order on May 21, 2010, to wind up the operations of L&M Petromas Pte Ltd. L&M.com Pte Ltd (formerly known as L&M Holdings Pte Ltd) filed the petition against the company. The company's liquidator is: Ms Kelly Lian Yafen Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 RADAR MAX: Court Enters Wind-Up Order ------------------------------------- The High Court of Singapore entered an order on May 21, 2010, to wind up the operations of Radar Max Pte Ltd. Singapore Telecommunications Limited filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee?s office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 SEO FRAGRANCE: Court Enters Wind-Up Order ----------------------------------------- The High Court of Singapore entered an order on May 14, 2010, to wind up the operations of Seo Fragrance & Flavours Pte Ltd. National Starch Pte Ltd filed the petition against the company. The company's liquidator is: Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 TW OILS: Court Enters Wind-Up Order ----------------------------------- The High Court of Singapore entered an order on May 21, 2010, to wind up the operations of TW Oils & Fats (Singapore) Pte Ltd. Carotino Sdn Bhd filed the petition against the company. The company's liquidator is: Mr Chan Yee Hong Nexia Ts Risk Advisory Pte. Ltd. 5 Shenton Way #16-00 UIC Building Singapore 068808 =============== T H A I L A N D =============== * THAILAND: Gov't. to Draw Up Aid Package to Affected SMEs ---------------------------------------------------------- The Office of Small and Medium Enterprises Promotion is drawing up an assistance package to support operators affected by the recent political unrest in Bangkok, The Bangkok Post reports citing director-general Yuthasak Supasorn. According to the report, Osmep is discussing how the assistance to revive trade should be structured with small and medium-size operators from areas that were directly and indirectly affected by the recent unrest. "We are trying to help small and medium entrepreneurs who still haven't got any help from the government," Mr. Yuthasak told Bangkok Post. The report relates Mr. Yuthasak said the state would help as many SMEs as possible, not just those in areas directly affected by the protests, but also others in the Pratunam area, Mahanak market and Suan Lum Night Bazaar. According to the report, Osmep officials suggested measures including: -- seeking short-term free retail space for wholesalers; -- asking the SME Bank to provide more soft loans to support entrepreneurs' cashflow; -- negotiating the proposed scheme with the bank as soon as possible and ask commercial banks to reschedule loan payments for affected operators; -- asking landlords to reduce rental fee; and -- providing free marketing channels including a website and printed materials. ********* 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 ***