/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100622.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, June 22, 2010, Vol. 13, No. 121 Headlines A U S T R A L I A SIGMA PHARMA: Shareholders May Opt to Settle Looming Class Suit TRIO CAPITAL: Creditors Expected to Place Firm in Liquidation C H I N A AGRICULTURAL BANK: Qatar to Invest US$2.8 Billion in IPO H O N G K O N G FUJITRANS (HK): Lai Kar Yan and Haughey Step Down as Liquidators GASUN SHOES: Creditors' Proofs of Debt Due July 20 GEMSTAR ASIA: Lam Po Wan Ivy Steps Down as Liquidator GENERAL TRADING: Chen and Koo Appointed as Liquidators GLOBAL SUCCESS: Wardell and Ip Appointed as Liquidators GOLDEN CHOICE: Wardell and Ip Appointed as Liquidators GOOD HARVEST: Members' and Creditors Meetings Set for June 30 GOOD HARVEST: Creditors' Proofs of Debt Due July 2 GRANDWAY GARMENT: Members' Final General Meeting Set for July 19 I N D I A ANIL STEEL: CRISIL Rates INR120.0 Mil. Cash Credit Limit at 'B+' BHUMI YARN: ICRA Assigns 'LBB+' Rating on INR226.1MM LT Bank Debts BUTIBORI CETP: CRISIL Puts 'B-' Rating on INR50MM Rupee Term Loan CANTON BUILDWELL: CARE Assigns 'CARE BB+' Rating on INR450cr Loan CALSEA FOOTWEAR: CRISIL Places 'P4+' Ratings on Various Bank Debts DEE DEVELOPMENT: CARE Assigns 'CARE C' Ratings on INR111.62cr Loan EASTMAN CAST: CRISIL Assigns 'BB-' Rating on INR66MM Cash Credit FAIRDEAL SUPPLIES: CARE Assigns 'CARE BB' Rating on INR52.99 Debt GLOBAL INSTITUTE: CRISIL Rates INR130.1 Million Term Loan at 'B+' HANS INDUSTRIES: ICRA Rates INR200 Million Bank Limits at 'LBB' KALINGA INSTITUTE: ICRA Places 'LB' Rating on INR1.07BB Term Loans MANGALAM VENTURES: ICRA Assigns 'LBB+' Rating on INR57.1MM LT Loan PRINCE INDUSTRIES: ICRA Assigns 'LBB+' Rating on Various Debts ROYAL BANK: In Talks to Sell Indian Unit to HSBC Holdings SKIL INFRASTRUCTURE: CARE Puts 'CARE BB+' Rating on INR150cr Loan VIMAL EXPORT: CARE Assigns 'CARE BB-' Rating on INR13cr LT Loans J A P A N JAPAN AIRLINES: May Seek JPY100 Bil. in Additional Financial Aid KENEDIX REALTY: Moody's Withdraws 'Ba1' Issuer Rating MLOX 4: Moody's Reviews Ratings on Five Classes of Certificates SEA CDO: Moody's Takes Rating Actions on Two Series of Notes N E W Z E A L A N D CEDENCO FOODS: Unsecured Creditors May Get Nothing LIVINGSPACE PROPERTIES: In Receivership; Grant Thornton Appointed P H I L I P P I N E S SELEGNA HOLDINGS: Supreme Court Denies Rehabilitation Plan X X X X X X X X DUBAI WORLD: Buyers Drop ISS Bid After DOJ Probe Unveiled * BOND PRICING: For the Week June 14 to June 18, 2010 - - - - - ================= A U S T R A L I A ================= SIGMA PHARMA: Shareholders May Opt to Settle Looming Class Suit --------------------------------------------------------------- Rebecca Urban at The Australian reports that lawyers representing disgruntled Sigma Pharmaceuticals shareholders aim to meet the new management early next month to negotiate a settlement. Slater & Gordon principal partner James Higgins confirmed that shareholders with claims of about AU$40 million had so far come forward, but rising interest was likely to push the figure to AU$100 million. Slater & Gordon flagged the potential class action on March 31 -- the same day that Sigma unveiled a historic AU$389 million loss that stemmed from significant asset write-downs, The Australian recalls. "We've had very significant institutional shareholder support for the action," Mr. Higgins told The Australian. "We would expect that in early July we'll be approaching the new management of Sigma to try to enter a process of negotiations." According to The Australian, Mr. Higgins said his firm would seek to settle the matter, but would not hesitate taking it to court if required. He suggested that a clearing out of the ranks might act as a catalyst for a settlement. Sigma Pharmaceuticals Chairman John Stocker retired on Monday and will be replaced by Brian Jamieson, while managing director Elmo De Alwis will be replaced by Mark Hooper in September, the report notes. The Troubled Company Reporter-Asia Pacific reported on April 23, 2010, that Sigma Pharmaceuticals Ltd. may face a damages claim of more than $200 million from shareholders over its annual loss and alleged breach of continuous disclosure obligations. Tom Tarasewicz, vice-president of the US litigation funder Comprehensive Legal Funding, said his firm had been approached by Australian institutional shareholders in Sigma, who were concerned about the company's long trading halt and the end- of-year adjustments it was about to make to its 2010 accounts. Mr. Tarasewicz said law firm Slater & Gordon was still several weeks from finalizing its investigation into Sigma's financial woes, which included nearly $500 million in goodwill write-downs, but said that at this stage the shareholder case looked strong. A damages bill above $200 million would be nearly half of Sigma's market capitalization of $572 million or almost three times its 2009 full-year profit, according to the Sydney Morning Herald. About Sigma Pharmaceuticals Based in Australia, Sigma Pharmaceuticals Limited (ASX:SIP) -- http://www.sigmaco.com-- is engaged in the manufacture, marketing and wholesale distribution of pharmaceutical products through the pharmacy and grocery channels and the provision of services to retail pharmacists. Its Pharmaceuticals segment includes the manufacture or contract manufacture for Australian and overseas customers. The Company's Healthcare segment represents its traditional pharmacy wholesale business. Its subsidiaries include Chemist Club Pty Limited, Sigma Company Limited, Amcal Pty. Limited, Commonwealth Drug Company Pty. Ltd., Fawns & McAllan Proprietary Limited, Guardian Pharmacies Australia Pty. Ltd and Sigma Finance Pty. Ltd. On October 2, 2009, the Company acquired some parts of the Australian business operations of Bristol Myers Squibb Australia (BMSA) and associated assets (BMS Australian Business). The BMS Australian Business consists of the pharmaceutical and technical operations division, which operates out of BMS Australia's Noble Park facility. TRIO CAPITAL: Creditors Expected to Place Firm in Liquidation ------------------------------------------------------------- The Sydney Morning Herald reports that Trio Capital Ltd. is expected to be placed in liquidation today, June 22, at a creditors meeting in Sydney. Public examinations into the disappearance of AU$180 million worth of investor funds will also commence next month, the report says. The Herald relates Brett Manwaring, of insolvency firm PPB, said the winding up of Trio became inevitable after an attempted deed of company arrangement with unnamed parties fell through. Trio collapsed late last year after the Australian Securities and Investments Commission stripped the company of its financial services license over growing questions about what had happened to AU$118 million invested by one of its funds, the Astarra Strategic Fund, via a number of overseas tax havens. According to SMH, investor losses are now expected to exceed AU$180 million with a NSW Supreme Court judge saying investors had almost certainly been the victim of a "fraudulent scam." A public examination into what happened to the funds will begin on July 13 with two of the principal players in the Trio fiasco, Shawn Richard and Eugene Liu, facing the examination, the report notes. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 22, 2009, the Australian Prudential Regulation Authority (APRA) suspended Trio Capital Limited (formerly Astarra Capital Limited) as the trustee of its four superannuation funds and one pooled superannuation trust, and appointed an Acting Trustee to manage these five entities. APRA suspended Trio and appointed an Acting Trustee as a result of numerous breaches of Trio Capital Limited's license conditions and Trio not being able to satisfy APRA's concerns regarding the valuation of superannuation assets. The Acting Trustee of the superannuation entities is ACT Super Management Pty Ltd, a subsidiary of McGrathNicol. The four main superannuation funds -- Astarra Superannuation Plan, Astarra Personal Pension Plan, My Retirement Plan, and the Employers Federation of NSW Superannuation Plan -- have approximately 10,000 members and their last reported assets as at end September 2009 totaled AU$300 million. Total assets under management in the various Trio Capital Limited superannuation entities and registered managed investment schemes, for which Trio is the Responsible Entity, are approximately AU$426 million. The total number of non superannuation investors is 732. The superannuation entities have significant investments in the Astarra Strategic Fund (ASF), one of the Trio Capital Limited managed investment schemes. The ASF financial statements for the year ended June 30, 2009, show total assets of around AU$118 million. The Australian Securities and Investments Commission has also suspended the Australian Financial Services Licence held by Trio Capital Limited, under which it acts as responsible entity of 24 registered managed investment schemes, including the Astarra Strategic Fund. Trio Capital Limited has been placed into external administration. Trio, under the control of its administrators, Stephen James Parbery, Neil Singleton and Nicholas Martin of PPB, will continue to act as responsible entity of the registered schemes until a replacement responsible entity is found or the schemes are wound up. ========= C H I N A ========= AGRICULTURAL BANK: Qatar to Invest US$2.8 Billion in IPO -------------------------------------------------------- Bloomberg News reports that the Qatar Investment Authority agreed to invest US$2.8 billion in Agricultural Bank of China Ltd.'s initial public offering to tap growth in the world's third-biggest economy. The $58 billion fund signed an agreement with Agricultural Bank on June 17, Bloomberg News relates citing two people with knowledge of the matter. The people said the bank has allocated more than US$5 billion for corporate investors such as QIA in the Hong Kong part of its IPO, Bloomberg News adds. Giyas Gokkent, chief economist at the National Bank of Abu Dhabi PJSC, told Bloomberg News that investing in China is part of QIA's "diversification strategy." Bloomberg News relates Mr. Gokkent said Qatar, holder of the world's third- largest natural gas reserves, will likely generate a trade surplus of $22 billion this year helped by oil and gas sales and some of that surplus will flow to the QIA. Meanwhile, Bloomberg News reports that a person with knowledge of the matter said Standard Chartered Plc, the London-based bank that gets most of its profit from Asia, will invest about $500 million in the IPO. AgBank Picks Top Banks to Lead IPO Reuters, citing sources involved with the process, reports that the Agricultural Bank of China has chosen the banks to lead its more than US$23 billion initial public offering. AgBank's selection of its top banks came as key investors swooped in on the offering while its underwriters market the dual listing to institutional investors, Reuters says. According to Reuters, AgBank has selected its internal securities unit, as well as CICC, Goldman Sachs and Morgan Stanley as joint global coordinators for the offering, granting these banks top status for the IPO's handling among the 11 banks picked to underwrite the Shanghai-Hong Kong deal. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 16, 2008, Agricultural Bank of China plans to seek a dual listing at both Shanghai Stock Exchange and Hong Kong Exchanges this year. The bank is expected to raise US$25 billion to US$35 billion from the IPO, with 60% of shares sold at the Shanghai bourse and 40% at the Hong Kong bourse. But the proportion could also be changed, depending on market situation and the scale of the IPO. Agricultural Bank was the last of China's large banks to be recapitalized by the state in preparation for restructuring and an eventual IPO and it is generally viewed in China as the worst- performing and worst-managed of all banks, according to The Financial Times. About ABC Agricultural Bank of China -- http://www.abchina.com/-- one of China's largest state-owned commercial banks, specializes in financing and providing services to agricultural, industrial, commercial, and transportation enterprises in rural areas. The bank also offers personal banking, credit cards, and foreign exchange services. Founded in 1951, ABC operates approximately 31,000 branches and banking offices, as well as more than 30 provincial-level offices, serving every county in China. Overseas it operates branches in Hong Kong and Singapore, and representative offices in London, New York, and Tokyo. * * * Agricultural Bank of China continues to carry Moody's 'E+' bank financial strength rating and Fitch's "E" Individual Rating. ================ H O N G K O N G ================ FUJITRANS (HK): Lai Kar Yan and Haughey Step Down as Liquidators ---------------------------------------------------------------- Lai Kar Yan, (Derek) and Darach E. Haughey stepped down as liquidators of Fujitrans (HK) Limited on June 8, 2010. GASUN SHOES: Creditors' Proofs of Debt Due July 20 -------------------------------------------------- Creditors of Gasun Shoes Company Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by July 20, 2010, to be included in the company's dividend distribution. The company's liquidator is: Lai Ying Sum Room 1608, 16/F Nan Fung Tower 173 Des Voeux Road Central, Hong Kong GEMSTAR ASIA: Lam Po Wan Ivy Steps Down as Liquidator ----------------------------------------------------- Lam Po Wan Ivy stepped down as liquidator of Gemstar Asia Limited on June 8, 2010. GENERAL TRADING: Chen and Koo Appointed as Liquidators ------------------------------------------------------ Chen Wa Tek and Koo Chee Kong Kenneth on June 4, 2010, were appointed as liquidators of General Trading and Investment Company Limited. The liquidators may be reached at: Chen Wa Tek Koo Chee Kong Kenneth Room 4411, 44th Floor, Cosco Tower 183 Queen's Road Central, Hong Kong GLOBAL SUCCESS: Wardell and Ip Appointed as Liquidators ------------------------------------------------------- James Wardell and Mr. Jackson Ip on June 10, 2010, were appointed as liquidators of Global Success Asia Group Limited. The liquidators may be reached at: James Wardell Mr. Jackson Ip Room 1601-1602, 16/F One Hysan Avenue Causeway Bay, Hong Kong GOLDEN CHOICE: Wardell and Ip Appointed as Liquidators ------------------------------------------------------ James Wardell and Mr. Jackson Ip on June 10, 2010, were appointed as liquidators of Golden Choice Investment (Group) Limited. The liquidators may be reached at: James Wardell Mr. Jackson Ip Room 1601-1602, 16/F One Hysan Avenue Causeway Bay, Hong Kong GOOD HARVEST: Members' and Creditors Meetings Set for June 30 ------------------------------------------------------------- Members and creditors of Good Harvest Textiles Limited will hold their annual meetings on June 30, 2010, at 2:30 p.m., and 3:00 p.m., respectively at 29/F, Caroline Centre, Lee Gardens Two, 28 Yun Ping Road, in Hong Kong. At the meeting, Chen Yung Ngai Kenneth, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GOOD HARVEST: Creditors' Proofs of Debt Due July 2 -------------------------------------------------- Creditors of Good Harvest Textiles Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by July 2, 2010, to be included in the company's dividend distribution. The company's liquidator is: Chen Yung Ngai Kenneth 29/F, Caroline Centre Lee Gardens Two 28 Yun Ping Road Hong Kong GRANDWAY GARMENT: Members' Final General Meeting Set for July 19 ---------------------------------------------------------------- Members of Grandway Garment Limited will hold their final general meeting on July 19, 2010, at 10:00 a.m., at 21/F., Fee Tak Commercial Centre, No. 613 Nathan Road, Kowloon, in Hong Kong. At the meeting, Wong Kam Chiu, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= ANIL STEEL: CRISIL Rates INR120.0 Mil. Cash Credit Limit at 'B+' ---------------------------------------------------------------- CRISIL has assigned its 'B+/Stable' rating to Anil Steel Works cash credit facility. Facilities Ratings ---------- ------- INR120.0 Million Cash Credit Limit B+/Stable (Assigned) The rating reflects ASW's exposure to risks related to customer and geographical concentration in its revenue profile and substantial withdrawals by promoters leading to partial erosion in its net worth and low financial flexibility. These rating weaknesses are partially offset by the benefits that ASW derives from its promoters' experience in the manufacture of hydraulic gates and mild steel pipe business. Outlook: Stable CRISIL believes that ASW will continue to benefit from its promoters extensive experience in the hydraulic gates and mild steel pipe manufacturing and installation business, and the firm's healthy order book improving its revenue visibility over the medium term. The outlook may be revised to 'Positive' if there is a significant reduction in the level of capital withdrawn by ASW's promoters, leading to improvement in the firm's net worth and capital structure, or if the firm diversifies its revenues while sustaining profitability and cash accruals. Conversely, the outlook may be revised to 'Negative' if the firm's financial flexibility weakens further because of decline in cash accruals or continued substantial capital withdrawals by the promoters. ASW was set up in 1984 with Mr. Punyapal Surana, Mr. Anil Surana (brother of Mr. Punyapal Surana) and Mrs. Anita Surana (wife of Mr. Anil Surana) as partners. In August 2005, Mr. Anil Surana and Mrs. Anita Surana retired, and Mr. Arpit Surana (son of Mr. Punyapal Surana) and Mrs. Hansa Surana (wife of Mr. Punyapal Surana) were inducted into the partnership firm. ASW is engaged in the manufacture, designing, engineering, supplying, installation and commissioning of different types of hydraulic gates used in dams; this constitutes around 60 per cent of ASW's total sales. ASW also manufactures mild steel aqueduct (pipelines) used to transport water through the canals; this accounts for around 40 per cent of total sales. ASW participates in and executes the tenders floated by Water Resources Department, Madhya Pradesh. ASW reported a profit after tax (PAT) of INR46 million on net sales of INR627 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR14.3 million on net sales of INR343 million for 2007-08. BHUMI YARN: ICRA Assigns 'LBB+' Rating on INR226.1MM LT Bank Debts ------------------------------------------------------------------ ICRA has assigned an LBB+ rating to the INR226.1 million long term fund-based limits & A4+ rating to the INR8.0 million short term non fund based limits of Bhumi Yarn Private Limited. The outlook assigned to the long term rating is Stable. The rating factors in the company's weak profitability and its moderately leveraged capital structure arising from debt funded capacity expansion, small scale of operations and commoditized nature of yarn business which limits its pricing flexibility. The rating also takes into account the competitive pressures due to the fragmented nature of man-made fibre yarn industry coupled with over capacity in the industry. The rating, however, favorably factors in the experience of BYPL's promoters in the textile business and its efficient working capital management. Bhumi Yarn Pvt. Ltd was incorporated in 2004 and is engaged in manufacturing of Polyester Filament Yarn (PFY) & Twisted Yarn (used in sleep wear, T-Shirts & Sportswear). It has two manufacturing units at Dadra & Nagar Haveli (UT) and its registered office is in Mumbai. The company earned a net profit of INR7.8 million on an operating income of INR1,034.6 million for the year ending March 31, 2009. BUTIBORI CETP: CRISIL Puts 'B-' Rating on INR50MM Rupee Term Loan ----------------------------------------------------------------- CRISIL has assigned its 'B-/Stable' rating to Butibori CETP Pvt Ltd bank facilities. Facilities Ratings ---------- ------- INR50.0 Million Rupee Term Loan B-/Stable (Assigned) INR50.0 Million Proposed LT B-/Stable (Assigned) Bank Loan Facility The rating reflects BCPL's weak financial risk profile, marked by small net worth and high gearing. These rating weaknesses are partially offset by BCPL's stable business risk profile, marked by exclusive liquid waste management arrangement with Maharashtra Industrial Development Corporations and Butibori Manufacturers' Association. Outlook: Stable CRISIL believes that BCPL's business risk profile will remain stable, backed by its exclusive liquid waste management arrangement with MIDC and BMA, over the medium term. The outlook may be revised to 'Positive' if BCPL's promoters infuse additional equity, thereby improving the company's capital structure. Conversely, the outlook may be revised to 'Negative' in case the company undertakes any larger-than-expected debt-funded capital expenditure programme. About Butibori CETP Incorporated in 2005, BCPL treats waste water collected from the small-scale industries located at MIDC, Butibori (Maharashtra). The company receives contaminated water from the 250 member entities through pipelines of MIDC, which is then treated and sent back to MIDC who uses it for irrigation of plants and trees. The member entities are primarily engaged in textile, chemical and engineering industries. BCPL reported a net loss of INR0.3 million on net sales of INR19.3 million for 2008-09 (refers to financial year, April 1 to March 31), against a profit after tax of INR0.2 million on net sales of INR19.5 million for 2007-08. CANTON BUILDWELL: CARE Assigns 'CARE BB+' Rating on INR450cr Loan ----------------------------------------------------------------- CARE assigns 'CARE BB+' rating to the bank facilities of Canton Buildwell Pvt Ltd. Amount Bank Facilities (INR crore) Rating --------------- ---------- ------ Fund-based Long-term 450.00 'CARE BB+' Bank Facilities Non-fund Based Long-term 3.60 'CARE BB+' Bank Facilities Rating Rationale The rating is constrained by risk associated with the residual project implementation, pending equity tie-ups, reliance on internal accruals for project funding, weak demand scenario in commercial segment of the real estate industry and regulatory risks associated with SEZs and the real estate sector. The rating takes comfort from the promoter's experience, demonstrated relationship with existing customers, lease agreement with Tata Consultancy Services (TCS) for around 3.5 lac sq ft of space under development and tie-up of debt component for the project. Going forward, timely and effective execution of project within the estimated cost and timely achievement of the envisaged leases of commercial and residential space at envisaged rates shall be the key rating sensitivities. Canton Buildwell Private Limited is a Special Purpose Vehicle (SPV) promoted by ASF Buildtech Private Limited for the development of an IT/ITeS sector specific SEZ in Gurgaon. ASF hold 73% stake in the SPV and the balance 27% is held by JP Morgan India Property Company II (JP Morgan) as a private equity investor. ASF, a part of ASF group, was incorporated in 2007 and is mainly engaged in the development and leasing of commercial properties, mainly catering to IT/ITeS sector. It has experience of developing around 6.9 lac sq. ft. of built-up space. Canton plans to develop an IT/ITeS sector specific SEZ over 70 acres of land in the village Gwal Pahari in Gurgaon on the Gurgaon-Faridabad road in two phases. In the first phase, it is developing an area of around 23.5 lac sq ft on 25.11 acres of land. The first phase is planned to be completed by December 2012. Project cost is projected at INR782 crore which is planned to be financed through promoters' contribution of INR225 crore, term loan of INR450 crore and internal accruals of INR107 crore. As on December 31, 2009, the promoters have brought in INR121 crore as equity and INR30 crore have been availed as term loan. CALSEA FOOTWEAR: CRISIL Places 'P4+' Ratings on Various Bank Debts ------------------------------------------------------------------ CRISIL has assigned its 'P4+' rating to the bank facilities of Calsea Footwear Pvt Ltd. Facilities Ratings ---------- ------- INR50.0 Million Packing Credit P4+ (Assigned) INR30.0 Million Letter of Credit P4+ (Assigned) INR3.5 Million Bank Guarantee P4+ (Assigned) The rating reflects Calsea's small scale of operations, and exposure to risks associated with reorganization of Investvar (parent company). These weaknesses are partially offset by Calsea's above-average financial risk profile constrained by low networth and healthy operating capabilities. Calsea was established in 2006 and is wholly owned by Calsea Calcado LDA, associate company of the Portugal-based firm Investvar. Investvar is one of the biggest footwear companies in Portugal, accounting for about 5 per cent of the country's total; footwear exports. Calsea is based in Chennai and has manufacturing capacity of 1.0 million pairs of shoes per annum. In 2009-10 (refers to financial year, April 1 to March 31), the company enhanced its capacity by 0.35 million pairs of shoes per annum. Calsea reported a profit after tax (PAT) of INR22.3 million on net sales of INR353.4 million for 2008-09, against a PAT of INR17.3 million on net sales of INR272.2 million for 2007-08. DEE DEVELOPMENT: CARE Assigns 'CARE C' Ratings on INR111.62cr Loan ------------------------------------------------------------------ CARE assigns 'CARE C' and 'PR4' ratings to the bank facilities of Dee Development Engineers Pvt Ltd. Amount Bank Facilities (INR crore) Rating --------------- ---------- ------ Long-term Bank Facilities 111.62 'CARE C' Short-term Bank Facilities 11.00 'PR4' Long-term/ Short-term Bank 15.50 'CARE C'/ 'PR4' Facilities Rating Rationale The ratings take into account instances of delays in debt servicing in the past, highly leverage capital structure, the ongoing debt-funded expansion expected to result in further deterioration of leverage position, working capital intensive operations and elongated working capital cycle during FY09. The ratings however draw comfort from experienced promoters, long track record of operations and reputed clientele providing repeat business. Going forward, Dee's ability to sustain order book position, improve profitability margins and thus generate adequate cash accruals shall be the key rating sensitivities. Originally incorporated on March 21, 1988, Dee Development Engineers Pvt. Ltd. (Dee) is engaged in engineering and manufacturing for pre-fabricated pipe spools, pipe fittings and boiler components at its plant located in Village Tatarpur, Faridabad (Haryana). The promoters Mr. K.L. Bansal and Mr. L. Rai, have vast experience in the area of operations of Dee. Dee achieved net sales of INR152.12 crore, PBILDT of INR21.66 crore and PAT of INR7.56 crore during FY09. On net sales of INR141.06 crore during 9MFY10, the company earned PBILDT of INR24.66 crore and PBT of INR11.82 crore. EASTMAN CAST: CRISIL Assigns 'BB-' Rating on INR66MM Cash Credit ---------------------------------------------------------------- CRISIL has assigned its ratings of 'BB-/Stable/P4+' to the bank facilities of Eastman Cast & Forge Ltd. Facilities Ratings ---------- ------- INR66 Million Cash Credit Facility BB-/Stable (Assigned) INR28 Million Standby Line of Credit BB-/Stable (Assigned) INR45.5 Million Term Loan BB-/Stable (Assigned) INR80 Million Letter of Credit P4+ (Assigned) INR84 Million Export Packing Credit* P4+ (Assigned) *Fully interchangeable with packing credit in foreign currency The ratings reflect ECF's weak financial risk profile marked by high gearing and weak debt protection measures, and its small scale of operations. These rating strengths are partially offset by the benefits the company derives from the industry experience of its promoters. Outlook: Stable CRISIL expects Eastman Cast & Forge Limited to maintain its business risk profile on the back of its established market position and diversity in channel distribution for product sales. The outlook may be revised to 'Positive' if ECF improves its cash accruals in order to meet its maturing debt obligations over the medium term. Conversely, the outlook may be revised to 'Negative' if the company undertakes a fresh large, debt-funded capital expenditure programme, or faces significant pressure on its profitability, leading to deterioration in its capital structure and ability to service debt in a timely manner. About Eastman Cast ECF was incorporated in 1989 by Mr. J R Sighal in Ludhiana, Punjab. The company manufactures hand tools, power tools, and tractor-linkage parts. ECF also trades in hand tools and power tools. The company has a production capacity of 2000 tonnes per annum. ECF also has a press forging machine of 600 tonnes capacity with induction heater. The company exports its products to Latin America, Western Europe, Russia, and the Middle East. It supplies to original equipment manufacturers, such as John Deere Equipment Private Limited, New Holland Fiat (India) Pvt. Ltd, Tractors and Farm Equipment Limited, and Tata Motors Ltd, among others. For 2008-09 (refers to financial year, April 1 to March 31), ECF reported a profit after tax (PAT) of INR12 million on net revenue of INR637 million, against a PAT of INR19 million on net revenue of INR639 million for the previous year. FAIRDEAL SUPPLIES: CARE Assigns 'CARE BB' Rating on INR52.99 Debt ----------------------------------------------------------------- CARE assigns 'CARE BB' and 'PR4' ratings to the bank facilities of Fairdeal Supplies Ltd. Amount Bank Facilities (INR crore) Rating --------------- ---------- ------ Long-term Bank Facilities 52.99 'CARE BB' Short-term Bank Facilities 117.50 'PR4' Long/ST Bank Facilities 305.00 Rating Rationale The rating factors in FSL's weak financial profile as characterized by operating loss incurred in FY09 and lower income and profits in 9MFY10, high overall gearing, weak debt servicing parameters, stressed liquidity scenario and vulnerability of its margins to movement in exchange rate & commodity prices especially due to predominantly trading nature of operations. These weaknesses are, however, partially offset by the vast experience of promoters and long established track record of operations. The ability to improve financial risk profile and debt servicing in light of weak debt servicing parameters remain the key rating sensitivities. Incorporated in 1987, FSL is the flagship company of Frontline Group and has a long track record of operations dealing in various types of coals and metallurgical coke. FSL has two plants located near Pipavav and Kandla Ports in Gujarat having total installed capacity of 1,25,000 MTPA of met coke. The major business activity is trading of coking coal, metallurgical (met) coke, pig iron & iron ore; trading sales accounted for around 87% of total sales in FY09. During FY09, total operating income declined to INR752 crore against INR896 crore in FY08. PAT margin also declined to 0.19% in FY09 against 2.77% in FY08. During 9MFY10 (provisional), operating income declined to INR334 crore and the company earned a PBT of INR3.57 crore. GLOBAL INSTITUTE: CRISIL Rates INR130.1 Million Term Loan at 'B+' ----------------------------------------------------------------- CRISIL has assigned its 'B+/Stable' rating to Global Institute of Technology Society's term loan facility. Facilities Ratings ---------- ------- INR130.10 Million Term Loan B+/Stable (Assigned) The rating reflects GITS's weak financial risk profile, marked by a small net worth, high gearing and average debt protection metrics, and exposure to risks related to concentration of revenues on the engineering courses its institute offers, its low operating efficiency, and susceptibility to adverse regulatory changes. These rating weaknesses are partially offset by GITS's comfortable position in the engineering education segment in Rajasthan and from the funding support it gets from its governing members. Outlook: Stable CRISIL believes that GITS's financial risk profile will remain weak and its business risk profile, constrained, over the medium term, because of its limited revenue diversification. The outlook may be revised to 'Positive' if GITS increases its scale of operations without deteriorating its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the society's financial risk profile deteriorates, most likely because of large, debt-funded capital expenditure or decline in profitability. About the Society GITS was set up in 2000 by Mr. Anand Singhal and Mr. Narendra Kumar Kandoi. In 2002, GITS's institute, Global Institute of Technology (GIT), began providing engineering courses. GIT is affiliated to Rajasthan Technical University (RTU) and approved by the All India Council for Technical Education (AICTE). GIT also has an intake capacity of 60 students for management course. The institute run by the society are located in Sitapura, Jaipur (Rajasthan). The society plans to offer courses under two shifts in GIT and is awaiting approval from AICTE for the same. GITS also plans to set up a new engineering institute at GIT's existing campus. Currently, the society has intake capacity of 420 and 60 students for its engineering and management courses respectively. GITS reported an excess of income over expenditure of INR5.6 million on net income of INR104.6 million for 2008-09, against an excess of income over expenditure of INR2.3 million on net income of INR94.0 million for 2007-08. HANS INDUSTRIES: ICRA Rates INR200 Million Bank Limits at 'LBB' --------------------------------------------------------------- ICRA has assigned an 'LBB' rating to the INR200 million fund based bank limits of Hans Industries Private Limited. The outlook on the long-term rating is stable. ICRA has also assigned an A4 rating to the INR50 million non-fund based bank limits of HIPL. The non-fund based limit of INR50 million is a sub-limit of INR200 million fund based Cash Credit (CC) limit. The ratings are constrained by the weak financial profile of HIPL characterized by low profitability; highly depressed return on capital employed; and pressure on coverage indicators; the company's exposure to exchange rate fluctuations, relatively small scale of operations; weak financial profile of group companies and the cyclicality inherent in the steel business, which makes margins and cash flows of players volatile. The ratings are, however, supported by the improvement witnessed in demand conditions for the steel industry, vertically integrated nature of operations of HIPL, involving production of mild steel (MS) ingot, which is internally used for steel re-rolling; and the group's presence in the ship breaking business, which ensures ready availability of scrap. Hans Industries Private Ltd. was acquired as a steel rolling mill company in 2006-07 by the Bhavnagar-based Aggarwal Group. The company was earlier engaged in the production of M. S. Ingots, beams, channels and angles. Currently HIPL has an induction furnace (commissioned in 2008-09) and a steel rolling mill (re- commissioned in 2007-08) with annual capacities of 40,000 metric tonne (MT) and 30,000 MT, respectively. The operations of the company are carried out at its plant located at Ghanghali in the Bhavnagar district of Gujarat. Besides HIPL, the Aggarwal group has a number of other companies having business interests in ship breaking, steel rolling and coke manufacturing. In 2008-09, HIPL reported an operating income of INR538.35 million and net loss of INR25.13 million. During the first ten months of 2009-10, the company posted a net profit of INR47.79 million on net sales of INR674.49 million. KALINGA INSTITUTE: ICRA Places 'LB' Rating on INR1.07BB Term Loans ------------------------------------------------------------------ ICRA has assigned an 'LB' rating to the INR1070.4 million term loans, INR311.8 million overdraft facility and INR50 million cash credit facility of Kalinga Institute of Industrial Technology. The rating takes into account the stretched liquidity position of KIIT leading to continuing delays in principal repayments and interest payment, an adverse financial risk profile reflected by an aggressive capital structure resulting from significant debt funded capital expenditure over the past four years and weak coverage indicators. The ratings also take into consideration the poor placement record for KIIT's technical courses, which could potentially impact admission of fresh students going forward. ICRA notes that KIIT is the society which manages different schools imparting education; hence a consolidated view has been taken to ascertain the overall financial risk profile of the entity. The rating also factors in the array of courses offered to students and the deemed university status granted to KIIT University, which provides it with operational flexibility to an extent. ICRA also takes notes of the improved student intake across courses during FY09, coupled with a higher fee structure resulting in improved profitability for KIIT. KIIT was established in 1992 as a society in Bhubaneswar, Orissa and manages KIIT University which has been granted the status of deemed university. The university offers education ranging from elementary school level to post graduation across various subjects. The flagship school of the entity offers engineering courses. The society also manages a 460 bed hospital. The society reported a net surplus of INR166.8 million in FY09 on an OI of INR1.24 billion as compared to INR44.6 million and INR0.89 billion during FY08 respectively. MANGALAM VENTURES: ICRA Assigns 'LBB+' Rating on INR57.1MM LT Loan ------------------------------------------------------------------ ICRA has assigned an LBB+ rating with stable outlook to INR57.10 million fund based long term bank facilities and an A4+ rating to INR12.5 million non fund based short term bank facilities of Mangalam Ventures Limited. The rating reflects MVL's small scale of operations, presence in a highly competitive industry and weak operating profitability. The rating also factors in MVL's highly concentrated customer base and its exposure to forex risks. The rating however, favorably factors in the experience of the promoters in the garments export business and comfortable liquidity position and capital structure at present. Mangalam Ventures Limited, a public limited company, established in the year 1993, is involved in the manufacture and sale of knitted readymade garments. The company is listed on BSE. MVL primarily manufactures Men's and Women's T-Shirts for exports. MVL is being managed by its director Mr. Sharat Jain along with the other non executive and independent directors. MVL has its factory located in Faridabad, NCR with an administrative and sales office in Mumbai. MVL recorded a net profit of INR5.8 million on an operating income of INR291.3 million for the year ended March 31, 2009 and a net profit of INR7.5 million on an operating income of INR350.3 million for the year ended March 31, 2010. PRINCE INDUSTRIES: ICRA Assigns 'LBB+' Rating on Various Debts -------------------------------------------------------------- ICRA has assigned an LBB+ rating to the Term Loans and Fund Based (Cash Credit) facilities of Prince Industries aggregating to INR103.3 million and INR165.0 million, respectively. The rating carries a stable outlook. ICRA has also assigned an A4+ rating to the Fund Based (Supplier's Credit) and Non-Fund Based limits of PI aggregating to INR15.0 million and INR80.0 million respectively. The ratings are constrained by the intense competition present in the PVC pipe segment due to low barriers to entry, moderate coverage indicators with gearing at 1.64 times as on March 31, 2010, high working capital intensity characterized by high debtor and inventory days and expected decline in revenue size of the firm in FY 2011 due to sale of one of the manufacturing facilities to a group company. Further, PI is a partnership concern and any significant withdrawals from the capital account would affect its capital structure. ICRA also notes that the ability of the firm to pass-on fluctuations in raw material prices (mainly PVC resin prices) in a highly competitive market through revisions in pricing list would remain critical to its profitability, going forward. The ratings however take support from the long track record of the promoter group in the PVC pipe manufacturing business, the strong distribution network of the firm across the country with moderate customer concentration risk, healthy demand outlook for PVC pipes and fittings and healthy profitability margins of the firm in the past due to healthy plant utilization levels as well as tax benefits enjoyed by its manufacturing plants. The Prince Group was incorporated in the year 1970 and started with the manufacturing of household plastic products using Poly Propylene (PPE) and High Density Poly Ethylene (HDPE). Prince Industries (PI) was incorporated in the year 2002 while commercial production commenced in the year 2003. PI is a partnership firm owned by Mr. Piyush Chheda and his family members. The firm is mainly involved in manufacturing of PVC (Polyvinyl Chloride) pipes and fittings for drainage purposes. The firm has also entered into manufacturing of agricultural pipes and fittings in the past two years. The products of PI are ISI certified and are mainly sold under the brand name of Prince. The firm is ISO 9001:2000 certified. ROYAL BANK: In Talks to Sell Indian Unit to HSBC Holdings --------------------------------------------------------- Royal Bank of Scotland Group Plc is in talks to sell its Indian commercial and retail unit to HSBC Holdings Plc, Bloomberg News reports citing two people with knowledge of the situation. The deal could be reached as early as next month, one of the sources told Bloomberg News. HSBC was previously in talks to acquire RBS assets in India, China and Malaysia but the discussions broke down last year following objections from Indian regulators, Bloomberg relates citing one of the people familiar with the situation. RBS is still looking to sell the Chinese unit and may close the Malaysian business, the second source said. According to Bloomberg News, one of the people said RBS is also in discussions to sell its investment banking operations in Chile and Uzbekistan. The units each employ about 80 people. About RBS The Royal Bank of Scotland Group plc (NYSE:RBS) -- http://www.rbs.com/-- is a holding company of The Royal Bank of Scotland plc (Royal Bank) and National Westminster Bank Plc (NatWest), which are United Kingdom-based clearing banks. The company's activities are organized in six business divisions: Corporate Markets (comprising Global Banking and Markets and United Kingdom Corporate Banking), Retail Markets (comprising Retail and Wealth Management), Ulster Bank, Citizens, RBS Insurance and Manufacturing. On October 17, 2007, RFS Holdings B.V. (RFS Holdings), a company jointly owned by RBS, Fortis N.V., Fortis SA/NV and Banco Santander S.A. (the Consortium Banks) and controlled by RBS, completed the acquisition of ABN AMRO Holding N.V. (ABN AMRO). In July 2008, the company disposed of its entire interest in Global Voice Group Ltd. * * * As reported by the Troubled Company Reporter-Europe on March 29, 2010, Standard & Poor's Ratings Services said that it lowered its ratings on "may pay" Tier 1 securities issued or guaranteed by The Royal Bank of Scotland Group PLC (A/Stable/A-1) to 'C' from 'CC'. At the same time, the rating on the RBSG-related security issued by Argon Capital PLC was similarly lowered to 'C' from 'CC'. The counterparty credit ratings and stand-alone credit profiles of RBSG and subsidiaries, and the ratings on other debt securities issued by these entities, are unaffected. SKIL INFRASTRUCTURE: CARE Puts 'CARE BB+' Rating on INR150cr Loan ------------------------------------------------------------------ CARE has assigned the 'CARE BB+' rating to the Long-term Bank Facilities aggregating to Rs.150 crore of SKIL Infrastructure Ltd. This rating is applicable to facilities having a tenure of more than one year. Facilities with this rating are considered to offer inadequate safety for timely servicing of debt obligations. Such facilities carry high credit risk. CARE assigns '+' or '-' signs to be shown after the assigned rating (wherever necessary) to indicate the relative position within the band covered by the rating symbol. Amount Bank Facilities (INR crore) Rating --------------- ---------- ------ Long-term Bank Facilities 150.00 'CARE BB+' Rating Rationale The rating is constrained by SKIL's investments in project- SPV's group companies with considerable gestation period, its limited operational track record in the projects conceived and developed by it and considerable corporate guarantees provided. Besides, timely divestment of its equity holding at appropriate valuations is dependent on the market dynamics. However, the rating derives strength from the company's prior experience in the development of various infrastructure projects, its low gearing levels, sound technical collaboration and strategic tie-ups with known global players for most of its projects. The timely completion of ongoing projects, company's ability to raise equity at appropriate valuations and to achieve the projected revenue and profitability, going forward, are the key rating sensitivities. SKIL Infrastructure Ltd. is engaged in development of various infrastructure facilities, through various Special Purpose Vehicles (SPVs). Currently SKIL is developing various infrastructure facilities which includes a shipyard, logistics and warehousing projects, an educational institution and a port project. The total cost of these projects is about INR5,539 crore. In FY09, SKIL registered a total income of INR4.90 crore mainly in the form of project development fees. Its net worth increased from INR479 crore as on March 31, 2008 to INR695 crore as on March 31, 2009 mainly on account of conversion of optionally convertible bonds to equity and issuance of compulsorily convertible preference shares aggregating INR200 crore. VIMAL EXPORT: CARE Assigns 'CARE BB-' Rating on INR13cr LT Loans ---------------------------------------------------------------- CARE assigns the rating of 'CARE BB?' to the bank facilities of Vimal Export. Amount Bank Facilities (INR crore) Rating --------------- ---------- ------ Long-term Bank Facilities 13.00 'CARE BB-' Rating Rationale The rating is constrained by the partnership nature of VME and small scale of operations coupled with withdrawal of capital by the partners in the past. The rating is further constrained by decline in revenue over the past two years (FY08 & FY09), low profitability margins, declining interest coverage, increasing working capital cycle leading to high overall gearing, increasing term debt to gross cash accruals ratio, increasing debtors to sales ratio coupled with uninsured debtors, strong competition from a large number of players in organized and unorganized sectors and high correlation of fortunes of Gems & Jewellery sector to economic cycles. The rating considers the experience of partners, long track record of the firm in diamond business and established clientele. The rating also factors in the Government support to the industry. Ability of VME to increase its scale of operations, improve its profitability margins, improve its working capital cycle and sustained recovery of GJ sector are the key rating sensitivities. M/s Vimal Export, incorporated in 1989, is a closely-held partnership firm. The firm is engaged in processing of small- sized diamonds of less than one carat fancy-cut diamonds such as Princess, Marquises' and Pears at its manufacturing facility in Surat, Gujarat. The firm is not a DTC sight holder. Net sales of VME declined by 53.20% in FY09 to INNR23.02 crore vis-a-vis INR59.73 crore in FY08. Further, PAT of the firm declined by 44.04% to Rs.0.51 crore in FY09 from INR0.91 crore in FY08. In 9MFY10, VME reported a decline in sales of 18.80% y-o-y to INR15.86 crore. The firm reported PBT of INR0.31 crore in 9MFY10 vis-a-vis loss of INR0.69 crore at Pre-tax levels in 9MFY09. ========= J A P A N ========= JAPAN AIRLINES: May Seek JPY100 Bil. in Additional Financial Aid ---------------------------------------------------------------- Japan Airlines Corp. is planning to ask banks and a government- backed corporate rehabilitation body to extend JPY100 billion in additional financial assistance, The Mainichi Daily News reports citing company sources. The Mainichi Daily says JAL's debts are expected to surpass its assets by approximately JPY950 billion, about JPY90 billion more than initially expected. According to the report, the airline will likely ask banks to increase the amount of debt they will waive by at least JPY50 billion from the original JPY358.5 billion. The report says JAL is also planning to ask the ETIC to increase its capital investment by tens of billions of yen from the initial JPY300 billion, hoping to reassure the banks into agreeing to the additional debt waiver. JAL said they intend to ask the banks for the debt waiver early next week, but the banks will not likely be keen to the request, the Mainichi Daily adds. 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) KENEDIX REALTY: Moody's Withdraws 'Ba1' Issuer Rating ----------------------------------------------------- Moody's Investors Service has withdrawn its issuer rating of Ba1 for Kenedix Realty Investment Corporation for business reasons. This action does not reflect a change in the company's creditworthiness. Moody's previous rating action on KRI took place on April 21, 2009, when it downgraded its issuer and unsecured long-term rating to Ba1 from Baa2, with a negative outlook. Kenedix Realty Investment Corporation is a listed J-REIT that invests in and manages mainly mid-level office properties. Its revenues totaled approximately JPY 8.1 billion for the fiscal half-year ended April 2010. MLOX 4: Moody's Reviews Ratings on Five Classes of Certificates --------------------------------------------------------------- Moody's Investors Service has placed five classes of MLOX 4 Trust Certificates on review for possible downgrade. The final maturity of the Trust Certificates will take place in May 2014. The individual rating actions are listed below. -- Class A, Aa2 Placed Under Review for Possible Downgrade; previously on July 8, 2009 Downgraded to Aa2 from Aaa -- Class B, A2 Placed Under Review for Possible Downgrade; previously on July 8, 2009 Downgraded to A2 from Aa2 -- Class C, Baa3 Placed Under Review for Possible Downgrade; previously on July 8, 2009 Downgraded to Baa3 from A2 -- Class D, B3 Placed Under Review for Possible Downgrade; previously on July 8, 2009 Downgraded to B3 from Baa2 -- Class X, Aa2 Placed Under Review for Possible Downgrade; previously on July 8, 2009 Downgraded to Aa2 from Aaa MLOX4, effected in December 2007, represents the securitization of four non-recourse loans. The transaction is currently backed by 22 properties (office, residential, hotel and retail properties) outside Tokyo, located in smaller cities throughout the country. The current review has been prompted by Moody's growing concerns about the need to apply higher stress on its previous (July 2009) recovery assumptions because the fundamental profitability -- in terms of rents and occupancy rates -- of the properties is likely to be lower than assumed and will be for some time. The master lessee of some of the properties backing two of the loans is in the process of negotiations to lower the rent. Moody's will examine additional performance data including PM reports and rent rolls to confirm the properties' occupancy rates and cash flow and will reconsider its assumptions on recovery stress. 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. SEA CDO: Moody's Takes Rating Actions on Two Series of Notes ------------------------------------------------------------ Moody's Investors Service has announced these rating actions: Issuer: SEA CDO Limited -- Series 2005-10 JPY 1,300,000,000 Non-Callable Fixed Rate Notes due 2010, downgraded to C; previously on April 16, 2009 downgraded to Caa3 -- Series 2005-12 US$ 15,000,000 Floating Rate Notes due 2010, downgraded to C; previously on October 28, 2009 downgraded to Ca Transaction: Versailles (CDO Credit-Linked Loan) -- Series 2006-2185 JPY2,000,000,000 5 Year Credit Linked Notes, downgraded to C; previously on April 16, 2009 downgraded to Caa3 The Series 2005-10 and 2005-12 notes are Corporate Synthetic Obligations that reference static portfolios of 12 and 13 global corporate entities, respectively. Versailles is a credit-linked loan extended to Credit Agricole CIB, Tokyo Branch (formerly, Calyon Tokyo Branch), the collateral of which comprises credit-linked notes referencing a static portfolio of 13 global corporate entities. There is no subordination in these transactions. The rating actions reflect full write down of each Tranche following Ambac Assurance Corporation credit event. 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 ==================== CEDENCO FOODS: Unsecured Creditors May Get Nothing -------------------------------------------------- Cedenco Foods' liquidator says it is unclear if unsecured creditors owed $3.4 million by the failed company will get any money, James Weir at BusinessDay.co.nz reports. According to the report, Cedenco liquidators Sheahan Lock Partners said in their first report that the receivers would take all steps to sell assets to the benefit of the secured creditor, the ANZ Bank. "It is presently unclear whether any surplus will exist after the secured creditor has been paid or whether any realizable assets will remain after the receivership terminates," the report quoted Sheahan Lock as saying. There are about 300 unsecured Cedenco creditors along with about 100 employees also listed, the report says. As reported in the Troubled Company Reporter-Asia Pacific reported on Nov. 10, 2009, ANZ Banking Group placed Cedenco Foods Australia in receivership. Craig Shepard and Mark Korda of KordaMentha have been appointed receivers and managers of Cedenco Australia and its related trading entities. The move came after ANZ Banking Group NZ subsidiary, ANZ National Bank, called in receivers into Cedenco Foods. The receivers said Cedenco's processing facility in Echuca, on the Murray River in Victoria, will continue to trade as usual and would be offered for sale as a going concern. About Cedenco Foods Cedenco Foods -- http://www.cedenco.co.nz/-- is a leading New Zealand and Australian based food ingredient processing and marketing company. It produces and exports vegetable and fruit powders, aseptic paste, purees and dice, frozen purees, and UHT vegetable purees individually Quick Frozen (IQF) products to customers globally. LIVINGSPACE PROPERTIES: In Receivership; Grant Thornton Appointed ----------------------------------------------------------------- Livingspace Properties Ltd. and four more companies associated with Christchurch property developer Dave Henderson have been placed in receivership, Radio New Zealand reports. According to the report, a spokesperson for the receivers, Grant Thornton Ltd., said it will take some time to get to grips with the financial position of the companies. The receivers will continue to operate the Livingspace businesses and honor bookings in the meantime, the report says. The Troubled Company Reporter-Asia Pacific, citing The Press, reported on June 18, 2010, three associated companies including Christchurch's budget-style Hotel So were placed into receivership on June 17, 2010, after defaulting on their debt repayments. South Canterbury Finance appointed receivers to Cashel Ventures Ltd., Hotel So Operations and Hotel So Corporation. Mr. Henderson is the sole director of all three companies, with his flagship company, Property Ventures, owning two and Henderson indirectly owning the third. SCF is owed about NZ$20 million by the companies, which were granted a loan on the Hotel So property. The Press relates that the NZ$20 million is part of NZ$27.4 million already allegedly owed to SCF by Property Ventures, which was placed into receivership by another lender, Allied Farmers, in March 2010. Livingspace Properties Ltd operates apartments in Christchurch, Dunedin and Invercargill. ===================== P H I L I P P I N E S ===================== SELEGNA HOLDINGS: Supreme Court Denies Rehabilitation Plan ---------------------------------------------------------- Selegna Holdings Corp. has lost its bid to suspend payments to over PHP800 million in debts, after the Supreme Court denied with finality its proposed rehabilitation plan, BusinessWorld Online reports. Selegna Holdings Corp. is a sister company of Asian Construction Development Corp., who built the mothballed Expo Pilipino theme park. The report says Selegna Holdings was denied a reversion of a high court ruling dated July 6, 2009, which did not grant the petition for corporate rehabilitation of the company. The ruling also upheld earlier decisions by the appellate courts, including that of the Court of Appeals, which said in its ruling last October 2008 that Selegna Holdings' plan was a ?mere ploy,? and a ?last- ditch effort? to evade creditors now running after its assets, the report relates. According to BusinessWorld, the high court said in its final ruling dated March 22 that Selegna Holdings raised no ?substantial argument to warrant a modification of this court's [earlier] resolution.? The report, citing court records, discloses that Selegna Holdings, owned by Edgardo H. Angeles and his family, has liabilities of PHP842.15 million. Under Selegna Holdings' rehabilitation plan, BusinessWorld notes, revenues from the car park building it operates at the University of Santo Tomas would be funneled to a creditor, Metropolitan Bank & Trust Co., to pay for a loan worth around PHP250 million. According to the report, other creditors were offered dacion en pago or payment in kind, and the option to restructure the loans over 15 years with floating interest rate. But this would depend on availability of free cash flow from the car park. The trial court, however, shot down the proposal on May 31, 2007, saying this favored Metrobank over other creditors, BusinessWorld recalls. The report notes that the Court of Appeals likewise rejected Selegna Holdings petition, describing it as a ?mere ploy,? and an effort to avoid foreclosure. BusinessWorld relates that the appeals court said the company also failed to prove that stockholders had advanced PHP351 million, and questioned why it lent PHP80.98 million to AsiaKonstrukt for the building of Expo Pilipino amid financial difficulties. =============== X X X X X X X X =============== DUBAI WORLD: Buyers Drop ISS Bid After DOJ Probe Unveiled --------------------------------------------------------- The Financial Times' Martin Arnold in London and Simeon Kerr in Dubai report that Dubai World's sale of Inchcape Shipping Services has been dealt a blow after prospective bidders learnt of an investigation they believe the U.S. Department of Justice is conducting into the business. The FT reports that several private equity groups dropped out of the bidding after discovering during due diligence what they believe is an investigation by the DoJ over its contract to service the U.S. Navy's Fifth Fleet in the Middle East. According to The FT, people familiar with the matter said U.S. private equity groups General Atlantic and Carlyle and Canadian pension fund Omers all decided not to submit second-round bids. The FT notes Cinven and CVC Capital Partners, the UK-based private equity groups, submitted non-binding bids late last month. But the bids were conditional on receiving more information about what they believe is a U.S. probe and the two groups have stopped work on a deal. The FT, citing two people familiar with the shipping unit, says the private equity groups believe the DoJ is investigating the government services division of ISS along with some of its rivals. One of the people said the private equity groups had learnt that an investigation had been going on for several months and was triggered by information from one of ISS's competitors about alleged corruption. The FT relates ISS is one of the few successful investments in Dubai World's Istithmar investment portfolio, which includes the QE2 ocean liner and performance company Cirque du Soleil. Istithmar bought ISS for $285 million at the start of its buying spree between 2006 and 2008. It has put the company up for sale for $800 million. According to the FT, ISS said, "These claims by third parties are an apparent attempt to undermine the value of a world class asset. It goes without saying that there would be no appetite to sell this business on the cheap. Istithmar has a number of years in which to realize the correct value of any assets it wishes to divest." Restructuring Deal According to the Troubled Company Reporter on June 2, 2010, The Wall Street Journal said Dubai World reached a broad agreement to pay off its creditors and reduce its $23.5 billion of debt. Aidan Birkett, chief restructuring officer of Dubai World, told Zawya Dow Jones that Dubai World will now seek a final deal with all of its creditors by the end of June. Under the deal, creditors will be repaid in full but the payment period will be extended, while the government of Dubai would convert debt into equity and help fund the restructuring. According to The Journal, the first portion, or tranche, of $4.4 billion will be paid in five years, with 1% annual interest in cash but no shortfall government guarantee. The second tranche of $10 billion will be paid over eight years, with 1% interest plus varying payment-in-kind interest and shortfall guarantees. Lenders will have to choose between three options, depending on their exposure and on their priorities in regard to the shortfall guarantee and payment in kind. The government of Dubai will convert $8.9 billion of debt and claims into equity in Nakheel, the real-estate arm of Dubai World, and commit to fund as much as $500 million of Nakheel's expenses and an interest facility of as much as $1 billion while maintaining 100% ownership of the Company. As part of the deal, Nakheel's trade creditors were offered repayment through a mix of 40% cash and 60% in a sukuk-a bond structured to comply with Islamic law-with a 10% annual return. Nakheel paid a $980 million Islamic bond. The Journal said the agreement with the creditors' coordinating committee accounts for about 60% of Dubai World's bank lenders. The remaining creditors holding 40% of the group's debt have yet to accept the deal. 6-Month Standstill In November 2009, the Troubled Company Reporter ran a story about Dubai World seeking a six-month standstill on its debt obligations. The government of Dubai said it would restructure Dubai World and has appointed Deloitte LLP to lead the restructuring effort, naming an executive at the consultancy as the group's "chief restructuring officer." Bloomberg News' Arif Sharif and Laura Cochrane said Dubai World has US$59 billion in liabilities. Bloomberg said Dubai accumulated US$80 billion of debt by expanding in banking, real estate and transportation before credit markets seized up last year. The Wall Street Journal said Standard & Poor's in an October report estimated Dubai World could be responsible for as much as 50% of Dubai's total government and corporate debt load of some US$80 billion to US$90 billion. About Dubai World Dubai World -- http://www.dubaiworld.ae/-- is Dubai's flag bearer in global investments. As a holding company it operates a highly diversified spectrum of industrial segments and plays a major role in the emirate's rapid economic growth. Dubai World's investment spans four strategic growth areas of 21st Century commerce namely, Transport & Logistics, Drydocks & Maritime, Urban Development and Investment & Financial Services. Dubai World's portfolio includes DP World, one of the largest marine terminal operators in the world; Drydocks World & Dubai Maritime City designed to turn Dubai into a major ship-building and maritime hub; Economic Zones World which operates several free zones around the world including Jafza and TechnoPark in Dubai; Nakheel the property developer behind iconic projects such as The Palm Islands and The World among others; Limitless the international real estate master planner with current development projects in various parts of the world; Leisurecorp a global sports and leisure investment group, reshaping the industry by unlocking value across investment, development and brand opportunities; Dubai World Africa which oversees the regional development and portfolio of investments in the African continent; and Istithmar World, the group's investment arm that has a global footprint in finance, capital, leisure, aviation and various other business ventures. * BOND PRICING: For the Week June 14 to June 18, 2010 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- ADVANCED ENERGY 9.50 01/04/2015 AUD 1.07 AINSWORTH GAME 8.00 12/31/2011 AUD 0.87 AMP GROUP FINANC 9.80 04/01/2019 NZD 0.99 ANTARES ENERGY 10.00 10/31/2013 AUD 1.86 AUROX RESOURCES 7.00 06/30/2010 AUD 0.95 BECTON PROP GR 9.50 06/30/2010 AUD 0.36 CBD ENERGY LTD 12.50 01/29/2011 AUD 0.12 CHINA CENTURY 12.00 09/30/2010 AUD 0.91 EXPORT FIN & INS 0.50 12/16/2019 AUD 58.69 EXPORT FIN & INS 0.50 06/15/2020 AUD 58.53 EXPORT FIN & INS 0.50 06/15/2020 AUD 56.82 FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.45 GRIFFIN COAL MIN 9.50 12/01/2016 USD 59.75 GRIFFIN COAL MIN 9.50 12/01/2016 USD 58.65 HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.43 JPM AU ENF NOM 1 3.50 06/30/2010 USD 5.75 MINERALS CORP 10.50 09/30/2011 AUD 0.25 NEW S WALES TREA 1.00 09/02/2019 AUD 65.18 PRAECO P/L 7.13 07/28/2020 AUD 71.65 RESOLUTE MINING 12.00 12/31/2012 AUD 1.02 SUN RESOURCES NL 12.00 06/30/2011 AUD 0.30 SUNCORP METWAY I 6.75 10/06/2026 AUD 72.59 CHINA ----- CHINA GOV'T BOND 1.64 12/15/2033 CNY 61.73 CHINA STATE GRID 4.05 05/29/2016 CNY 69.62 HONG KONG --------- RESPARCS FUNDING 8.00 12/29/2049 USD 33.00 INDIA ----- AFTEK INFOSYS 1.00 06/25/2010 USD 70.00 GEMINI COMMUNICATION 6.00 07/18/2012 EUR 66.75 KALINDEE RAIL NI 0.50 03/07/2012 USD 71.50 MASCON GLOBAL LT 2.00 12/28/2012 USD 36.25 JAPAN ----- AIFUL CORP 1.50 10/20/2011 JPY 71.89 AIFUL CORP 6.00 12/12/2011 JPY 74.37 AIFUL CORP 1.20 01/26/2012 JPY 71.71 AIFUL CORP 1.99 03/23/2012 JPY 70.38 AIFUL CORP 1.22 04/20/2012 JPY 67.86 AIFUL CORP 1.63 11/22/2012 JPY 57.99 AIFUL CORP 1.74 05/28/2013 JPY 51.84 AIFUL CORP 1.99 10/19/2015 JPY 43.87 COVALENT MATERIALS 2.87 02/18/2013 JPY 67.09 CSK CORPORATION 0.25 09/30/2013 JPY 74.23 JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 60.25 JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 59.67 KIRAYAKA HOLDING 2.59 03/22/2016 JPY 65.53 SHINSEI BANK 5.62 12/29/2049 GBP 70.00 TAKEFUJI CORP 9.20 04/15/2011 USD 60.00 TAKEFUJI CORP 9.20 04/15/2011 USD 60.00 TAKEFUJI CORP 4.00 06/05/2022 JPY 53.37 MALAYSIA -------- ADVANCED SYNERY 2.00 01/26/2018 MYR 0.07 ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.13 CAGAMAS BERHAD 2.47 08/25/2010 MYR 2.70 CRESENDO CORP B 3.75 01/11/2016 MYR 0.80 DUTALAND BHD 6.00 04/11/2013 MYR 0.31 DUTALAND BHD 6.00 04/11/2013 MYR 0.73 EASTERN & ORIENT 8.00 07/25/2011 MYR 0.94 EASTERN & ORIENT 8.00 11/16/2019 MYR 0.93 KRETAM HOLDINGS 1.00 08/10/2010 MYR 1.27 KUMPULAN JETSON 5.00 11/27/2012 MYR 1.63 LION DIVERSIFIED 4.00 12/17/2013 MYR 1.66 MITHRIL BHD 3.00 04/05/2012 MYR 0.64 NAM FATT CORP 2.00 06/24/2011 MYR 0.09 OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.51 OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.22 OLYMPIA INDUSTRI 2.80 04/11/2013 MYR 0.19 PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.63 REDTONE INTL 2.75 03/04/2020 MYR 0.07 RUBBEREX CORP 4.00 08/14/2012 MYR 1.12 SCOMI ENGINEERING 4.00 03/19/2013 MYR 1.08 SCOMI GROUP 4.00 03/19/2013 MYR 0.09 TRADEWINDS CORP 2.00 02/08/2012 MYR 0.60 TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.10 TRC SYNERGY 5.00 01/20/2012 MYR 0.91 WAH SEONG CORP 3.00 05/21/2012 MYR 2.24 WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.31 YTL CEMENT BHD 5.00 11/10/2015 MYR 1.88 NEW ZEALAND ----------- ALLIED FARMERS 9.60 11/15/2011 NZD 71.09 ALLIED NATIONWIDE 11.52 12/29/2049 NZD 33.00 CONTACT ENERGY 8.00 05/15/2014 NZD 1.03 FLETCHER BUI 8.50 03/15/2015 NZD 8.00 FLETCHER BUI 7.55 03/15/2011 NZD 7.00 GMT BOND ISSUER 7.75 06/19/2015 NZD 0.10 INFRATIL LTD 8.50 11/15/2015 NZD 8.60 INFRATIL LTD 8.50 11/15/2015 NZD 8.65 INFRATIL LTD 10.18 12/29/2049 NZD 64.00 KIWI INCOME PROP 8.95 12/20/2014 NZD 1.34 MANUKAU CITY 6.15 09/15/2013 NZD 1.01 MANUKAU CITY 6.90 09/15/2015 NZD 1.03 MARAC FINANCE 10.50 07/15/2013 NZD 1.00 NZ FINANCE HLDGS 9.75 03/15/2011 NZD 67.71 SKY NETWORK TV 4.01 10/16/2016 NZD 54.26 SOUTH CANTERBURY 10.50 06/15/2011 NZD 1.01 SOUTH CANTERBURY 10.43 12/15/2012 NZD 0.56 ST LAURENCE PROP 9.25 07/15/2010 NZD 40.82 TOWER CAPITAL 8.50 04/15/2014 NZD 1.02 TRUSTPOWER LTD 8.50 09/15/2012 NZD 7.00 TRUSTPOWER LTD 8.50 03/15/2014 NZD 7.15 TRUSTPOWER LTD 7.60 12/15/2014 NZD 1.02 TRUSTPOWER LTD 8.60 12/15/2016 NZD 1.02 UNI OF CANTERBUR 7.25 12/15/2019 NZD 1.01 VECTOR LTD 7.80 10/15/2014 NZD 1.00 VECTOR LTD 8.00 12/29/2049 NZD 7.25 SINGAPORE --------- SENGKANG MALL 8.00 11/20/2012 SGD 0.10 SENGKANG MALL 4.88 11/20/2012 SGD 0.10 UNITED ENG LTD 1.00 03/03/2014 SGD 1.51 WBL CORPORATION 2.50 06/10/2014 SGD 1.98 SOUTH KOREA ----------- DAEWOO MTR SALES 6.55 03/17/2011 KRW 71.83 DAEWOO MTR SALES 5.88 06/21/2012 KRW 74.08 SRI LANKA --------- SRI LANKA GOVT 7.00 10/01/2023 LKR 73.83 THAILAND -------- THAILAND GOVT 0.75 01/04/2022 THB 72.39 VIETNAM -------- VIETNAM MACHINE 9.20 06/06/2017 VND 66.53 VIETNAM SHIPBUIL 9.00 04/13/2017 VND 60.77 VIETNAM-PAR 4.00 03/12/2028 USD 75.00 ********* 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 ***