/raid1/www/Hosts/bankrupt/TCRAP_Public/100826.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, August 26, 2010, Vol. 13, No. 168
Headlines
A U S T R A L I A
CITY PACIFIC: Morgan Stanley Fund Offers to Buy Pacific Mortgage
IC GROUP: ASIC Obtains Wind Up Order; Vincents Chartered Appointed
ONE.TEL LTD: Liquidator Sues Packer and Murdoch Over Collapse
PRIME INFRASTRUCTURE: Moody's Gives Developing Outlook on Rating
REDLANDS GENERAL: Shuts Doors As Administrator Look for Buyers
WRIGHT GLOBAL: Placed in Voluntary Administration
C H I N A
CHINA DU: Posts US$135,200 Net Loss in Q2 Ended June 30
CHINA IVY: Reports Net Income of US$78,050 in Q2 Ended June 30
H O N G K O N G
ASIA COLD: Members' Final Meeting Set for September 24
B.M. OPTICAL: Creditors and Members' Meetings Set for August 27
EVERGREEN RESTAURANT: Annual General Meetings Set for September 1
DAVOR POWER: Creditors' Proofs of Debt Due September 20
DUNHUANG (CHINA): Annual General Meetings Set for September 1
KPN WHOLESALE: Creditors' Proofs of Debt Due September 10
KP CHEMICAL: Members' Final Meeting Set for September 21
M.D. CREATION: Creditors and Members' Meetings Set for August 27
MOULIN GLOBAL: Creditors and Members' Meetings Set for August 27
MOULIN (H.K.): Creditors and Members' Meetings Set for August 27
OKINAWA LIMITED: Members' Final Meeting Set for September 22
PROTRIONIC HK: Creditors' Proofs of Debt Due September 20
S.G.S. PRODUCTS: Members' Final Meeting Set for September 28
SHATIN TREASURE: Annual General Meetings Set for September 1
SUPERSHINE LIMITED: Creditors' Proofs of Debt Due September 3
TAI PO: Annual General Meetings Set for September 1
TEAM GLORY: Members' and Creditors Meetings Set for September 3
TIANLI INVESTMENT: Members' Final Meeting Set for September 20
TREASURE FLOATING: Annual General Meetings Set for September 1
TREASURE FOOD: Annual General Meetings Set for September 1
TREASURE MANAGEMENT: Annual General Meetings Set for September 1
TREASURE RESTAURANT: Annual General Meetings Set for September 1
TREASURE SEAFOOD: Annual General Meetings Set for September 1
ZHONGTAI CONSTRUCTION: Creditors' Proofs of Debt Due September 17
I N D I A
CASCADE COMMERCE: CRISIL Rates INR70 Million Cash Credit at 'B+'
EASTMAN IMPEX: CRISIL Assigns 'BB-' Rating to INR57.5MM Term Loan
EXPLICIT LEATHERS: CRISIL Puts 'BB+' Rating on INR35.5MM Loan
FIVEBROS FORGINGS: CRISIL Assigns 'BB' Rating to INR2.5MM Loan
GMB TEXTILES: CRISIL Assigns 'BB-' Rating to INR17.7MM Term Loan
LIVON CERAMIC: ICRA Places 'LBB-' Rating on INR4.24cr Term Loans
MANIPAL ACUNOVA: CRISIL Lifts Rating on INR117M Term Loan to 'BB-'
MICRO INSTRUMENTS: CRISIL Reaffirms 'BB+' Rating on Cash Credit
PANORAMA EXPORTS: CRISIL Lifts Ratings on Various Debts to 'P4+'
RELIABLE INDUSTRIES: CRISIL Reaffirms 'BB' Ratings on Bank Debts
SALASAR RETAIL: CRISIL Assigns 'D' Rating to INR33.7MM Term Loan
SATGURU FOUNDATIONS: CRISIL Assigns 'D' Ratings to Various Debts
SHRI MALAPRABHA: ICRA Reaffirms 'LBB' Rating on Various Debts
SHREE GITA: ICRA Assigns 'LBB' Rating to INR12cr Cash Credit
SRI SAI: CRISIL Assigns 'D' Ratings to INR395.4MM Long Term Loan
STELLENCE PHARMSCIENCE: CRISIL Reaffirms 'B-' Ratings on Debts
VICHI AGRO: CRISIL Assigns 'B' Rating to INR75 Mil. Cash Credit
K O R E A
DAEWOO SHIPBUILDING: Expects KRW9 Tril. in Sales From Wind Power
N E W Z E A L A N D
AORANGI SECURITIES: Investors Want Statutory Management to End
AVANTI FINANCE: S&P Gives Stable Outlook; Affirms 'BB-/B' Rating
CRAFAR FARMS: Receivers Want Printer Forensically Examined
T A I W A N
AMERICAN INTERNATIONAL: Nan Shan Sale Still Under Review, FSC Says
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A U S T R A L I A
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CITY PACIFIC: Morgan Stanley Fund Offers to Buy Pacific Mortgage
----------------------------------------------------------------
Project Junior Pte Ltd, a company owned by Morgan Stanley Real
Estate Special Situations Fund III, has made a 26c cash offer to
unitholders in the frozen Pacific First Mortgage Fund once
controlled by failed City Pacific, goldcoast.com.au reports.
The report says that the 26c-a-unit offer for up to 49% of the
frozen mortgage fund is seen as an opportunistic raid on assets
that have more upside potential than down, and well below the most
recent valuation of 47c a unit.
According to the report, the fund's current manager, Balmain
Trilogy (BT), has neither recommended nor rejected the offer,
emphasizing it was well under current asset valuations.
BT joint chief executive Rodger Bacon was disappointed a higher
offer was not on the table, but he said Morgan Stanley was the
only institution BT had approached that was willing to make any
offer at all, goldcoast.com.au relates.
Morgan Stanley Real Estate director Anthony Kingsley said this was
the first institutional offer ever made to a frozen Australian
fund, but he said it was not a takeover.
The report notes that the Morgan Stanley bid is subject to a
minimum of 10% acceptance and the passing of a resolution for a
new strategy to be put to unitholders by BT at a special meeting
in Brisbane on September 1.
According to goldcoast.com.au, those who accept the Morgan Stanley
offer also will give up their rights to any legal recoveries by BT
from parties involved in the collapse of City Pacific, which some
have suggested could be as high as 10c a unit.
About City Pacific
City Pacific Limited (ASX:CIY) -- http://www.citypac.com.au/
-- is engaged in funds management, including acting as responsible
entity and manager of four registered managed investment schemes
(City Pacific First Mortgage Fund (formerly City Pacific Mortgage
Trust), City Pacific Income Fund, City Pacific Managed Fund and
City Pacific Private Fund), property, financial services,
investment/trading activities and operations. The Company
conducts business in five primary segments, being funds
management, property, financial services, investment/trading and
operating. On July 2, 2007, the Company acquired Australian
Beneficial Finance Pty Ltd., which is a mortgage manager
specializing in residential mortgage origination and management,
and commercial and development funding.
* * *
The Troubled Company Reporter-Asia Pacific reported on Aug. 4,
2009, that receivers and managers have been appointed to City
Pacific Ltd following the loss of its AU$630 million mortgage fund
to Balmain Trilogy. City Pacific's banker, the Commonwealth Bank,
called in Ian Carson and Daniel Bryant from PPB to act as
receivers and managers because the company is unable to pay debts
of more than AU$100 million. PPB partner Ian Carson said City
Pacific's loss of the fund had had a "significant impact upon
(its) ability to service its debts and remain viable".
The TCR-AP reported on Aug. 31, 2009, that City Pacific Ltd has
been put into liquidation after a federal court judge ordered
liquidator Andrew Wily and David Hurst of Sydney insolvency firm
Armstrong Wily to wind up the company. The application to have
Armstrong Wily appointed was made by creditor Hlbc Commercial on a
debt of AU$3,060.
IC GROUP: ASIC Obtains Wind Up Order; Vincents Chartered Appointed
------------------------------------------------------------------
The Australian Securities and Investments Commission has obtained
court orders winding up four companies, which operated as part of
the fundraising arm of Gold Coast based property development
group, known as the IC Group.
The Supreme Court of Queensland on August 24 ordered Messrs. Peter
Dinoris and Nick Combis of Vincents Chartered Accountants in
Brisbane to be appointed as liquidators to wind up Supersafe
Australia Pty Ltd, Supersafe Qld Pty Ltd, Northcoast (Qld)
Australia Pty Ltd and Supersafe N.S.W. Pty Ltd. A further related
IC Group investment company, Bricks and Mortar Ltd, was
deregistered by ASIC in May 2010.
The investment companies within the IC Group were set up and
operated to raise funds from investors to assist in financing
various property development projects, being undertaken by IC
Group related companies. The IC Group operated from Bundall on
the Gold Coast under the management and control of Susanne Rae
Percival, who was declared bankrupt on November 24, 2009.
The companies before the court on Tuesday raised funds from retail
investors who were offered 15 to 20 per cent per annum in interest
payments through unsecured loan contracts. Bricks and Mortar Ltd
had raised funds from investors through the offer of redeemable
preference shares offering similar returns.
ASIC's investigation is continuing.
Background
Between May 2002 and September 2008 the IC Group investment
companies raised over $20 million from at least 500 investors. In
each case investors were encouraged to invest funds into the
companies on the basis that their funds were to be on-lent to
particular related property development companies at a higher
interest rate. Returns to investors relied upon the related
property development companies generating sufficient returns and
profits to meet their loan commitments to the investment
companies.
From about 2008, many of the property development companies
experienced financial difficulties, resulting in the appointment
of receivers and the forced sale of their development properties
to satisfy debts to their principal financier, the National
Australia Bank. Once the development companies were unable to
meet their commitments to the investment companies, the investment
companies were unable to meet their commitments to investors and
the companies became insolvent.
The IC Group investment companies have since remained inactive,
allegedly insolvent with no active directors, registered office or
place of business. ASIC intervened to ensure the companies were
wound up in an orderly fashion, so the interests of investors and
creditors could be properly attended to.
ONE.TEL LTD: Liquidator Sues Packer and Murdoch Over Collapse
-------------------------------------------------------------
Joe Schneider at Bloomberg News reports that James Packer,
Australia's richest man, and Lachlan Murdoch, son of News Corp.
Chairman Rupert Murdoch, face a revived lawsuit over the collapse
of One.Tel Ltd.
Bloomberg relates One.Tel special purpose liquidator Paul Weston
of Pitcher Partners said that legal papers were formally served on
Messrs. Murdoch and Packer as he seeks to recover AU$132 million
for the creditors of the bankrupt telecommunications company.
Also served with the lawsuit were Publishing and Broadcasting
Ltd., now known as Consolidated Media Holdings Ltd., and News
Ltd., a unit of News Corp, Bloomberg adds.
"I consider the case against the defendants to be strong and the
prosecution of the claim to be in the best interest of creditors,"
Bloomberg quoted Mr. Weston as saying. "The length of this final
phase will largely depend on the actions of the defendants."
The Troubled Company Reporter-Asia Pacific, citing the Herald Sun,
reported on November 24, 2009, that the fight arises out of
One.Tel's aborted AU$132 million rights issue in 2001, which was
to be backed by Packer's Publishing and Broadcasting Limited and
Murdoch's News Ltd. PBL and News, which lost a combined AU$1
billion when One.Tel collapsed, withdrew their underwriting on the
grounds that it was not enough to cover the telco's debts.
Bloomberg News relates Mr. Weston sued in May 2007, although the
claim wasn't served on the defendants until on Monday as he sought
to raise money to finance the litigation. Mr. Weston said in an
Aug. 5 report he secured funding for the lawsuit. The agreement
was approved by a judge and terms were sealed, the report related.
About One.Tel
One.Tel Limited is an Australian based telecommunications company,
belonging to One.Tel Group. One.Tel Ltd. was established in 1995
soon after the deregulation of the Australian telecommunications
industry, most of which are currently under external
administration by court appointed liquidators.
One.Tel is currently in liquidation due to financial problems.
Ferrier Hodgson was appointed as voluntary administrator on
May 29, 2001. The administrator's report stated that the company
was insolvent as of March 2001. Accordingly, the administrator
terminated approximately 3,000 employees in June that same year.
Steve Sherman and Peter Walker of Ferrier Hodgson were then
named liquidators on July 24, 2001.
PRIME INFRASTRUCTURE: Moody's Gives Developing Outlook on Rating
----------------------------------------------------------------
Moody's Investors Service has changed the outlook on the Ba2
corporate family rating of Prime Infrastructure Group (formerly
known as Babcock and Brown Infrastructure) to developing from
stable. Moody's also changed the outlook on the Ba3 senior
secured ratings of Prime Infrastructure Finance Pty Ltd and Prime
Infrastructure Networks (New Zealand) Limited to developing from
stable.
The change in outlook follows the announcement by Prime and
Brookfield Infrastructure Finance L.P. (BIP; unrated) that both
entities have entered into a merger agreement via a Scheme of
Arrangement (Scheme). It was also announced that BIP will also
make a concurrent takeover bid for Prime, in the event the Scheme
does not proceed. The merger proposal will be implemented via BIP
issuing 0.24 BIP units in exchange for each Prime security held,
subject to receipt of all applicable approvals and consents.
"The change in outlook to developing reflects a degree of
uncertainty over the resulting credit profile of Prime and the
combined entity, should the transaction proceed", said Terry
Fanous, a Moody's Senior Vice President. "Having said that,
Moody's do not consider at this point that the proposed
transaction would materially alter Prime's overall credit
profile", Fanous added.
Over time, Prime's credit profile could be influenced by BIP's own
financial position and its strategy with respect to the companies'
growth plans and asset mix. Accordingly, positive rating trend
could evolve over time as Moody's see more clarity surrounding
these issues. BIP forms an integral part of the investment
holdings of Brookfield Asset Management, which is rated Baa2
(stable) by Moody's.
The outlook could revert to stable if the transaction does not
proceed or if there is no material change in Prime's business and
financial profile under its new ownership structure.
The last rating action with respect to Prime was taken on Nov. 26,
2009, when Moody's upgraded Prime's CFR to Ba2 and Prime
Infrastructure Finance's senior secured rating to Ba3 following
the successful completion of Prime's recapitalization.
Prime's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
Prime's i) business risk and competitive position versus other
companies within the industry; ii) capital structure and financial
risk; iii) projected performance over the near to intermediate
term; and iv) management's track record and tolerance for risk.
These attributes were compared with other issuers both within and
outside Prime's core industry.
Prime, based in Sydney, is an infrastructure fund which owns a
series of infrastructure assets in Australia, New Zealand, UK,
Europe and the US.
BIP owns and operates long-term assets in the utilities, fee for
service and timber sectors in North and South America, Australasia
and Europe. It is a publicly-traded partnership which is also 40%
owned and managed by BAM.
REDLANDS GENERAL: Shuts Doors As Administrator Look for Buyers
--------------------------------------------------------------
The Brisbane Times reports that the Redlands General Practice, in
Brisbane's bayside, and Medeco Medical Centre at Beenleigh
suddenly closed their doors on August 9, leaving hundreds of
patients and more than 20 staff in the lurch.
The report relates administrator Brent Kijurina said the centres
went into voluntary administration after he was unable to find
someone to take on a licence agreement.
But while many of the patients have moved on to other medical
practices, none of the doctors appear to have done the same.
According to the Brisbane Times, the South East Alliance of
General Practice, which represents GPs in Brisbane's bayside, has
been unable to contact any of the 13 Redlands' GPs since the
closure and the SouthEast Primary HealthCare Network has not
spoken to three doctors or seven other health staff at the
Beenleigh practice. General Practice Queensland, which represents
all Queensland GPs, has not also heard from any of them.
The Brisbane Times reports Mr. Kijurina said Redlands General
Practice was one of five medical centres run under The Doctor
Company, which looked after the financial side of the businesses
to allow the doctor owners to concentrate on their medical
services. Three other practices -- in Inala, Corinda and
Toowoomba -- had remained open after staff signed a licence
agreement, the report adds.
Mr. Kijurina, according to Brisbane Times, said he was working to
get a licence agreement in order for the Redlands and Beenleigh
surgeries to reopen and then be sold.
Expressions of interest to buy the businesses close on August 26.
"I'm hopeful that I'll be able to get the two closed ones open and
I'll be able to find a buyer for them," the report quoted Mr.
Kijurina as saying.
In the meantime, the report says, the loss of 13 GPs is expected
to create a shortfall of medical experts in an area already
declared by the federal government to be suffering a shortage of
doctors.
The Redlands General Practice is a 24-hour medical center based in
South Brisbane, Australia.
WRIGHT GLOBAL: Placed in Voluntary Administration
-------------------------------------------------
Kate Kachor at InvestorDaily reports that Wright Global
Investments has been placed in voluntary administration. WGI
director Graham Kinder appointed Ngan and Co as administrators
late last week.
"The best possible way for the company to secure its assets was
through the resources of voluntary administration rather than
pursue the matter myself. So I appointed an administrator late
last week," InvestorDaily quoted Mr. Kinder as saying.
InvestorDaily relates Mr. Kinder said that commission payments to
WGI advisers are up to date, with the administrators responsible
for payment of the next commission run.
Mr. Kinder said at the time of the administrator's appointment,
WGI had traded solvently as a company. However, the report says,
concerns surrounding missing assets proved too costly for the
company to recover and he said it would more than likely become
insolvent.
Wright Global Investments is dealer group linked to Trio Capital's
controversial collapse. It has a license from the Australian
Securities and Investments Commission to act as a financial
planner. The business licenses about 60 planners as authorized
representatives in cities including Sydney, Melbourne and Perth.
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C H I N A
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CHINA DU: Posts US$135,200 Net Loss in Q2 Ended June 30
-------------------------------------------------------
China Du Kang Co., Ltd., filed its quarterly report on Form 10-Q,
reporting a net loss (attributable to China Du Kang) of US$135,185
on US$440,975 of revenue for the three months ended June 30, 2010,
compared with a net loss (attributable to China Du Kang) of
US$141,496 on US$373,958 revenue for the same period in 2009.
The Company had an accumulated deficit of US$17.2 million and a
working capital deficiency of US$12.3 million at June 30, 2010.
The Company's balance sheet as of June 30, 2010, showed
US$11.7 million in total assets, US$18.6 million in total
liabilities, and stockholders' deficit of US$6.9 million.
Keith Z. Zhen, CPA, in Brooklyn, N.Y., expressed substantial doubt
about the Company's ability to continue as a going concern,
following its 2009 results. The independent auditor noted that
the Company has incurred operating losses in 2009 and 2008 and has
a working capital deficiency and shareholders' deficiency as of
December 31, 2009.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?69d6
Headquartered in Shaanxi, PRC, China Du Kang Co., Ltd. (OTC: CDKG)
was incorporated as U.S. Power Systems, Inc. in the State of
Nevada on January 16, 1987. The Company manufactures, sells,
licenses and distributes a proprietary line of white wines that
are generally known in China under the heading Du Kang. Du Kang
is a generic description, like "vodka" or "merlot" and is one of
the most famous Chinese white wine brands.
CHINA IVY: Reports Net Income of US$78,050 in Q2 Ended June 30
------------------------------------------------------------
China Ivy School, Inc., filed its quarterly report on Form 10-Q,
reporting net income of US$78,050 on US$1.5 million of revenue for
the three months ended June 30, 2010, compared with net income of
US$96,175 on US$1.4 million of revenue for the same period of
2009.
As of June 30, 2010, and December 31, 2009, the Company had cash
of US$214,215 and US$46,187, respectively, and a working capital
deficit of US$11.7 million and US$11.0 million, respectively. The
Company also had an accumulated deficit of US$5.4 million as of
June 30, 2010.
The Company's balance sheet as of June 30, 2010, showed
US$14.9 million in total assets, US$13.1 million in total
liabilities, and stockholders' equity of US$1.8 million.
Michael T. Studer CPA P.C., in Freeport, N.Y., expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statements
for the years 2008 and 2009. The independent auditors noted that
as of Dec, 31, 2009, and 2008, the Company had cash of US$46,187
and US$58,984, respectively, and working capital deficits of
US$11.0 million and US$13.3 million, respectively. In addition,
the Company had an accumulated deficit of US$5.1 million and
US$4.3 million as of Dec. 31, 2009, and 2008, respectively.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?69cb
Based in Jiangsu Province, P.R. China, China Ivy School, Inc. was
incorporated in the State of Nevada. The Company operates an
educational facility under the name "Blue Tassel School" which
provides a comprehensive curriculum required by the government of
the People's Republic of China, supplemented by a broad range of
elective courses which may be chosen from by the school's
students. To the present date, the Company has only operated
within the People's Republic of China.
================
H O N G K O N G
================
ASIA COLD: Members' Final Meeting Set for September 24
------------------------------------------------------
Members of The Asia Cold Storage Company Limited will hold their
final meeting on September 24, 2010, at 3:30 p.m., at 2/F., 44-52
Ta Chuen Ping Street, Kwai Chung, in N.T.
At the meeting, Man King Chi Eddie, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
B.M. OPTICAL: Creditors and Members' Meetings Set for August 27
---------------------------------------------------------------
Creditors and members of B.M. Optical International Company
Limited will hold their annual meetings on August 27, 2010, at
2:00 p.m. at the office of FS Asia Advisory Limited, 14th Floor,
The Hong Kong Club Building, 3A Chater Road, Central, in
Hong Kong.
At the meeting, Roderick John Sutton, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
EVERGREEN RESTAURANT: Annual General Meetings Set for September 1
-----------------------------------------------------------------
Creditors and Contributories of Evergreen Restaurant Limited will
hold their annual meetings on September 1, 2010, at 12:20 p.m.,
and 11:40 a.m., respectively at 25th Floor, Wing On Centre, No.
111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidators,
will give a report on the company's wind-up proceedings and
property disposal.
DAVOR POWER: Creditors' Proofs of Debt Due September 20
-------------------------------------------------------
Davor Power Trade Hong Kong Limited, which is in members'
voluntary liquidation, requires its creditors to file their proofs
of debt by September 20, 2010, to be included in the company's
dividend distribution.
The company's liquidators are:
Dr. Terence Ho Yuen Wan
Mr.Henry Fung
Rooms 1001-1003, 10/F
Manulife Provident Funds Place
345 Nathan Road, Kowloon
Hong Kong
DUNHUANG (CHINA): Annual General Meetings Set for September 1
-------------------------------------------------------------
Creditors and Contributories of Dunhuang (China) Company Limited
will hold their annual meetings on September 1, 2010, at 12:00
p.m., and 11:20 a.m., respectively at 25th Floor, Wing On Centre,
No. 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidators,
will give a report on the company's wind-up proceedings and
property disposal.
KPN WHOLESALE: Creditors' Proofs of Debt Due September 10
---------------------------------------------------------
Creditors of KPN Wholesale Voice Services Hong Kong Limited, which
is in members' voluntary liquidation, are required to file their
proofs of debt by September 10, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on August 10, 2010.
The company's liquidators are:
Ying Hing Chiu
Chan Mi Har
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
KP CHEMICAL: Members' Final Meeting Set for September 21
--------------------------------------------------------
Members of KP Chemical (H.K.) Limited will hold their final
meeting on September 21, 2010, at 10:00 a.m., at Rooms 1905-8,
19/F, Kai Tak Commercial Building, 161 Connaught Road Central, in
Hong Kong.
At the meeting, Lau Dick Pau, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
M.D. CREATION: Creditors and Members' Meetings Set for August 27
---------------------------------------------------------------
Creditors and members of M.D. Creation Limited will hold their
annual meetings on August 27, 2010, at 2:15 p.m. at the office of
FS Asia Advisory Limited, 14th Floor, The Hong Kong Club Building,
3A Chater Road, Central, in Hong Kong.
At the meeting, Roderick John Sutton, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
MOULIN GLOBAL: Creditors and Members' Meetings Set for August 27
---------------------------------------------------------------
Creditors and members of Moulin Global Eyecare Services Limited
will hold their annual meetings on August 27, 2010, at 2:30 p.m.
at the office of FS Asia Advisory Limited, 14th Floor, The Hong
Kong Club Building, 3A Chater Road, Central, in Hong Kong.
At the meeting, Roderick John Sutton, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
MOULIN (H.K.): Creditors and Members' Meetings Set for August 27
---------------------------------------------------------------
Creditors and members of Moulin (H.K.) Logistics Company Limited
will hold their annual meetings on August 27, 2010, at 3:00 p.m.
at the office of FS Asia Advisory Limited, 14th Floor, The Hong
Kong Club Building, 3A Chater Road, Central, in Hong Kong.
At the meeting, Roderick John Sutton, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
OKINAWA LIMITED: Members' Final Meeting Set for September 22
------------------------------------------------------------
Members of Okinawa Limited will hold their final general meeting
on September 22, 2010, at 10:00 a.m., at 2503 Bank of America
Tower, 12 Harcourt Road, Central, in Hong Kong.
At the meeting, Susanna Bik-Chu Lung, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
PROTRIONIC HK: Creditors' Proofs of Debt Due September 20
---------------------------------------------------------
Creditors of Protrionic HK Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
September 20, 2010, to be included in the company's dividend
distribution.
The company's liquidator is:
Ng Wai Cheong
Protronic HK Limited
Unit 4407, 44/F, Hopewell Centre
183 Queen's Road East
Wanchai, Hong Kong
S.G.S. PRODUCTS: Members' Final Meeting Set for September 28
------------------------------------------------------------
Members of S.G.S. Products Limited will hold their final meeting
on September 28, 2010, at 11:30 a.m., at 21/F, Edinburgh Tower,
The Landmark, 15 Queen's Road Central, in Hong Kong.
At the meeting, Isabelle Angeline Young, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
SHATIN TREASURE: Annual General Meetings Set for September 1
------------------------------------------------------------
Creditors and Contributories of Shatin Treasure Restaurant Company
Limited will hold their annual meetings on September 1, 2010, at
11:20 a.m., and 10:40 a.m., respectively at 25th Floor, Wing On
Centre, No. 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidators,
will give a report on the company's wind-up proceedings and
property disposal.
SUPERSHINE LIMITED: Creditors' Proofs of Debt Due September 3
-------------------------------------------------------------
Creditors of Supershine Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
September 3, 2010, to be included in the company's dividend
distribution.
The company's liquidator is:
Chan Kin Hang Danvil
Room 2301, 23/F
Ginza Square, 565-567
Nathan Road, Kowloon
TAI PO: Annual General Meetings Set for September 1
---------------------------------------------------
Creditors and Contributories of Tai Po Treasure Restaurant Company
Limited will hold their annual meetings on September 1, 2010, at
11:40 a.m., and 11:00 a.m., respectively at 25th Floor, Wing On
Centre, No. 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidators,
will give a report on the company's wind-up proceedings and
property disposal.
TEAM GLORY: Members' and Creditors Meetings Set for September 3
---------------------------------------------------------------
Members and creditors of Team Glory Trading Limited will hold
their annual meetings on September 3, 2010, at 10:00 a.m., and
10:30 a.m., respectively at Room 1402, On Hong Commercial Bldg.,
145 Hennesy Rd., Wanchai, in Hong Kong.
At the meeting, Lo Shing Chi and Tsang Kwok Keung William, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
TIANLI INVESTMENT: Members' Final Meeting Set for September 20
--------------------------------------------------------------
Members of Tianli Investment Limited will hold their final general
meeting on September 20, 2010, at 11:00 a.m., at Room 1601, China
Merchant Bank Building, Qing Nian Road, Construction Avenue, Wu
Han City, in China.
At the meeting, He Jun, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
TREASURE FLOATING: Annual General Meetings Set for September 1
--------------------------------------------------------------
Creditors and Contributories of Treasure Floating Restaurant
Limited will hold their annual meetings on September 1, 2010, at
9:00 a.m., and 9:00 a.m., respectively at 25th Floor, Wing On
Centre, No. 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidators,
will give a report on the company's wind-up proceedings and
property disposal.
TREASURE FOOD: Annual General Meetings Set for September 1
----------------------------------------------------------
Creditors and Contributories of Treasure Food Limited will hold
their annual meetings on September 1, 2010, at 11:00 a.m., and
10:20 a.m., respectively at 25th Floor, Wing On Centre, No. 111
Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidators,
will give a report on the company's wind-up proceedings and
property disposal.
TREASURE MANAGEMENT: Annual General Meetings Set for September 1
----------------------------------------------------------------
Creditors and Contributories of Treasure Management Company
Limited will hold their annual meetings on September 1, 2010, at
10:20 a.m., and 10:00 a.m., respectively at 25th Floor, Wing On
Centre, No. 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidators,
will give a report on the company's wind-up proceedings and
property disposal.
TREASURE RESTAURANT: Annual General Meetings Set for September 1
----------------------------------------------------------------
Creditors and Contributories of Treasure Restaurant Company
Limited will hold their annual meetings on September 1, 2010, at
9:20 a.m., and 9:20 a.m., respectively at 25th Floor, Wing On
Centre, No. 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidators,
will give a report on the company's wind-up proceedings and
property disposal.
TREASURE SEAFOOD: Annual General Meetings Set for September 1
-------------------------------------------------------------
Creditors and Contributories of Treasure Seafood Restaurant
Limited will hold their annual meetings on September 1, 2010, at
10:00 a.m., and 9:40 a.m., respectively at 25th Floor, Wing On
Centre, No. 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidators,
will give a report on the company's wind-up proceedings and
property disposal.
ZHONGTAI CONSTRUCTION: Creditors' Proofs of Debt Due September 17
-----------------------------------------------------------------
Creditors of Zhongtai Construction Group Shares (Hong Kong)
Limited, which is in members' voluntary liquidation, are required
to file their proofs of debt by September 17, 2010, to be included
in the company's dividend distribution.
The company's liquidator is:
Fung Ka Ka
Rooms 1606-07, 16/F
Nan Fung Tower
173 Des Voeux Road
=========
I N D I A
=========
CASCADE COMMERCE: CRISIL Rates INR70 Million Cash Credit at 'B+'
----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the cash credit
facility of Cascade Commerce Pvt Ltd, which is part of the Finex
group.
Facilities Ratings
---------- -------
INR70.00 Million Cash Credit B+/Stable (Assigned)
The rating reflects the Finex group's below-average financial risk
profile, marked by a small net worth, high gearing, low cash
accruals and weak debt protection metrics, and exposure to risks
related to intense competition in the automobile dealership
industry. These rating weaknesses are partially offset by the
benefits that the Finex group derives from its healthy debtor and
inventory risk management.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of CCPL and Finex Merchant Pvt Ltd. This
is because the two companies, together referred to as the Finex
group, are under a common management, and operate in similar line
of business.
Outlook: Stable
CRISIL believes that the Finex group will maintain its revenue
growth, backed by its moderate position in the automobile
dealership market in Kolkata, over the medium term. The outlook
may be revised to 'Positive' if the Finex group receives
significant capital infusion, or if its profitability increases
significantly. Conversely, the outlook may be revised to
'Negative' if the group's financial risk profile deteriorates
because of large debt contracted for capital expenditure.
About the Group
FMPL was set up in August 2006, and is dealer for Hyundai Motor
India Ltd (Hyundai) in Kolkata. FMPL has its showroom named Saini
Hyundai at New Alipore, Kolkata with a space of 15000 square feet
(sq ft). The company also has a workshop with capacity of 65 cars
per day. Saini is categorised as elite dealer by Hyundai on the
basis of Customer Satisfaction Index (CSI) and Sales Satisfaction
Index (SSI). Saini is second in CSI all over India and 13th in SSI
all over India.
CCPL was set up in November 2007 and is also dealer for Hyundai.
The company has showroom named Spring Hyundai at Halden Avenue,
Kolkata, having floor area of 13000 sq ft. The company has a
workshop with capacity of 25 cars per day.
The Finex group reported a profit after tax (PAT) of INR12 million
on operating income of INR1845 million for 2009-10 (refers to
financial year, April 1 to March 31), against a net loss of INR3
million on operating income of INR1114 million for 2008-09.
EASTMAN IMPEX: CRISIL Assigns 'BB-' Rating to INR57.5MM Term Loan
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Eastman
Impex to 'BB-/Stable/P4+' from 'B+/Stable/P4'.
Facilities Ratings
---------- -------
INR57.5 Million Term Loan BB-/Stable (Upgraded from
'B+/Stable')
INR126.0 Million Export Packing P4+ (Upgraded from 'P4')
Credit
INR50.0 Million Line of Credit P4+ (Upgraded from 'P4')
INR226.0 Million Letter of Credit/ P4+ (Upgraded from 'P4')
Bank Guarantee
The rating upgrade reflects the better-than-expected sales and
profitability reported by Eastman in 2009-10 (refers to financial
year, April 1 to March 31), which has kept its debt protection
indicators at better than previously expected weak levels. The
firm has mitigated the impact of downturn in exports markets on
its sales by diversifying its product profile. The upgrade also
reflects CRISIL's belief that Eastman will be able to report
healthy growth in sales in the medium term with improving export
demand and widening of its products profile.
The ratings continue to reflect Eastman's weak financial risk
profile marked by a small net worth, and its exposure to risks
related to its high reliance on debt, and volatility in the price
of steel and the value of the Indian rupee. These weaknesses are
partially offset by Eastman's moderate market share in the steel
products exports industry and established brand image.
Outlook: Stable
CRISIL believes that Eastman will maintain its business risk
profile over the medium term on the back of its established market
position in the steel products industry, supported by healthy
relationships with suppliers. The outlook may be revised to
'Positive' if Eastman's financial risk profile improves
significantly, most likely because of capital infusion by
promoters. Conversely, the outlook may be revised to 'Negative'
if the firm undertakes larger-than-expected debt-funded capital
expenditure programme.
About Eastman Impex
Set up as a partnership firm in 1996 by Mr. Dharam Pal Gupta, Mr.
Jagdeep Singhal, Mr. Vinay Singhal, and Mr. Rajeev Singhal,
Eastman trades in steel products such as construction items,
scaffoldings, and hand tools. The firm is based in Ludhiana
(Punjab).
Eastman reported a profit after tax (PAT) of INR52.00 million on
net sales of INR1.39 billion for 2008-09, against a PAT of
INR24.00 million on net sales of INR1.07 billion for 2007-08. On a
provisional basis, Eastman reported PAT of INR18.00 million on net
sales of INR1.25 billion for 2009-10.
EXPLICIT LEATHERS: CRISIL Puts 'BB+' Rating on INR35.5MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Explicit Leather, which is a part of the Explicit
group.
Facilities Ratings
---------- -------
INR35.5 Million Term Loan BB+/Stable (Assigned)
INR20.0 Million Packing Credit P4+ (Assigned)
INR15.0 Million Bill Discounting P4+ (Assigned)
The ratings reflect the Explicit group's exposure to risks related
to customer concentration in revenue profile, intense competition
in the leather garments and accessories market, and small net
worth. These weaknesses are partially offset by Explicit's
moderate financial risk profile, marked by low gearing, and
comfortable debt protection metrics, and its promoters' experience
in the leather goods business.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Explicit Leathers and its group company
Exquisite Enterprises Pvt Ltd. This is because the two entities,
collectively referred to as the Explicit group, have operational
and financial linkages.
Outlook: Stable
CRISIL believes that the Explicit group will continue to benefit
from its established customer base and promoters' experience in
the leather products industry. The outlook may be revised to
'Positive' if the Explicit group diversifies its customer base and
sustains its operating margin. Conversely, the outlook may be
revised to 'Negative' if economic slowdown or intense competition
in the leather goods industry significantly impacts the group's
expected cash accruals and operating margin.
About Explicit Leather
Set up in 1991 by Mr. Harveen Singh Bali, Explicit Leathers is a
proprietorship firm manufacturing and exporting leather garments
and accessories since 1999. There were no operations in the firm
during 1991 to 1999. About 95 per cent of the firm's revenue is
contributed by leather garments. The firm has one garment
manufacturing plant in Faridabad (Haryana) having a capacity of
25,000 to 30,000 garments per month. It has recently enhanced the
capacity of its Okhla (New Delhi) plant to 10,000 garments per
month from 8,000. The new plant was set up at a capital
expenditure of INR65 million, which was funded in a debt-to-equity
ratio of 1.2:1.
Mr. Harveen Sigh Bali's father Mr. Gurdeet Singh Bali incorporated
EEPL in 1986 for tanning of leather. Since then, EEPL is involved
in the same line of business with current tanning capacity of
around 100,000 skins per month. Mr. Gurdeet Singh Bali retired
from the business in 1999, and currently Mr. Harveen Singh Bali
and his wife are managing EEPL. Around 80 to 90 per cent of the
leather production of EEPL is consumed by Explicit as raw material
for manufacturing of garments. During 2008-09 (refers to financial
year, April 1 to March 31), Mr. Bali acquired another tannery -
GNG Enterprises ? for INR35 million, funded from his own sources.
It was a sick unit and is currently non-operational.
The Explicit group reported a provisional profit before tax (PBT)
of INR32.1 million on provisional net sales of INR401.4 million
for 2009-10 against a profit after tax (PAT) of INR8.8 million on
net sales of INR304.1 million for 2008-09.
FIVEBROS FORGINGS: CRISIL Assigns 'BB' Rating to INR2.5MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to Fivebros
Forgings Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR10.0 Million Cash Credit BB/Stable (Assigned)
INR 2.5 Million Term Loan BB/Stable (Assigned)
INR25.0 Million EPC/Bill Discounting P4+ (Assigned)
INR30.0 Million Letter of Credit P4+ (Assigned)
INR5.0 Million Bank Guarantee P4+ (Assigned)
The ratings reflect FFPL's small scale of operations, small net
worth, and susceptibility to volatility in the value of the Indian
rupee and cyclicality in the oil and gas industries. These rating
weaknesses are partially offset by FFPL's moderate financial risk
profile, marked by comfortable gearing and debt protection
metrics, and promoters' experience in the oil and gas industries.
Outlook: Stable
CRISIL believes that FFPL's financial risk profile will remain
moderate, and its scale of operations, small, over the medium
term. The outlook may be revised to 'Positive' if FFPL's scale of
operations increases significantly, or if its financial
flexibility improves, driven by increase in net worth, most likely
through fresh equity infusion. Conversely, the outlook may be
revised to 'Negative' in case of significant pressure on the
company's revenues and operating margin, or pressure on capital
structure because of larger-than-expected debt-funded capital
expenditure.
About Fivebros Forgings
FFPL was incorporated in 1999. FFPL's current promoters,
Mr. Yogesh Vadhar and Mr. K K Sayal, acquired the company in 1999,
when it was a sick unit. The company manufactures flanges and
forgings, which it exports primarily to oil and gas, and
petrochemical manufacturers in Europe and Canada. However, because
of to the slowdown in export markets, FFPL's proportion of sales
in India increased in 2009-10 to about 50 per cent of total sales
from more than 60 per cent in previous years. FFPL has production
capacity of 5000 tonnes per annum (tpa) for forging and 2000 tpa
for machining at its plant in Ankleshwar (Gujarat).
FFPL reported a profit after tax (PAT) of INR10.1 million on net
sales of INR204.9 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR12.2 million on net
sales of INR205.1 million for 2007-08.
GMB TEXTILES: CRISIL Assigns 'BB-' Rating to INR17.7MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to GMB Textiles
Mills India Limited's bank facilities.
Facilities Ratings
---------- -------
INR17.70 Million Term Loan BB-/Stable (Assigned)
INR37.50 Million Cash Credit BB-/Stable (Assigned)
INR27.70 Million Proposed Term Loan BB-/Stable (Assigned)
INR17.00 Million Bank Guarantee P4+ (Assigned)
The ratings reflect GMB's below-average financial risk profile,
marked by high gearing. The ratings also factor in GMB's small
scale of operations, and the susceptibility of its profitability
to volatile raw material prices. These rating weaknesses are
partially offset by the experience of GMB's promoters in the
textile industry.
Outlook: Stable
CRISIL believes that GMB will continue to benefit over the medium
term from its promoters' experience in the cotton spinning
industry, and the steady demand for its products. The outlook may
be revised to 'Positive' if GMB's capital structure and
profitability improve, and the company scales up its operations
significantly. Conversely, the outlook may be revised to
'Negative' if GMB undertakes a larger-than-expected debt-funded
capital expenditure programme, faces significant delay in
implementation of its capacity expansion project, or if its
profitability and revenues decline significantly, thereby
weakening its financial risk profile.
About GMB Textiles
GMB, incorporated in 2005, manufactures woven yarn. It has a
capacity of 12,096 spindles and manufactures yarn in counts of 30s
and 40s. The company is promoted and currently managed by Mr. V K
Ashokan and others. Its manufacturing facility is in Padipparai
(Tamil Nadu), while its administrative office is in Erode (Tamil
Nadu).
GMB reported a provisional profit after tax (PAT) of INR5 million
on net sales of INR219 million for 2009-10 (refers to financial
year, April 1 to March 31), against a net loss of INR7 million on
net sales of INR153 million for 2008-09.
LIVON CERAMIC: ICRA Places 'LBB-' Rating on INR4.24cr Term Loans
----------------------------------------------------------------
ICRA has assigned 'LBB-' rating to the INR 4.24 crore term loans
and INR 3.00 crore cash credit facilities of Livon Ceramic. The
outlook on the long term rating is stable. ICRA has also assigned
A4 rating on short term scale to the INR 0.67 crore non-fund based
limits of Livon Ceramic.
The ratings are constrained by Livon Ceramic's weak financial
profile characterized by moderately high gearing and small size of
operations in relation to other large organized ceramic tile
manufacturers; limited track record of commercial operations;
highly competitive nature of the ceramic tile industry and
relatively lower visibility of its brand compared to other large
organized players. The ratings also take into account the
vulnerability of Livon Ceramic's profitability to the cyclicality
associated with the real estate industry. Further, Livon Ceramics
is a partnership concern and any significant withdrawals
from the capital account would affect its capital structure.
However, the ratings favorably consider the steady ramp-up of
operations by Livon Ceramic; prior experience of the promoters in
ceramic industry, stable demand prospects in the near term for
wall tiles in the domestic market and Livon Ceramic's presence in
the larger sized wall tile segment which yields higher realization
compared to standard sized wall tiles.
About Livon Ceramic
Livon Ceramic was incorporated in July 2008 to manufacture wall
tiles. The firm started commercial production from January 2009.
The firm has its production facilities at Morbi, Gujarat with a
total manufacturing capacity of 27000 MTPA and it produces around
2, 30,000 boxes per month.
Recent Results
For the year ended March 31, 2010, the firm reported an operating
income of INR 26.12 crore and profit before tax of INR 0.95 crore.
MANIPAL ACUNOVA: CRISIL Lifts Rating on INR117M Term Loan to 'BB-'
------------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Manipal
AcuNova Ltd to 'BB-/Stable/P4+' from 'B+/Negative/P4'.
Facilities Ratings
---------- -------
INR117.0 Million Long-Term Loan BB-/Stable (Upgraded from
'B+/Negative')
INR50.0 Million Cash Credit Limit BB-/Stable (Upgraded from
'B+/Negative')
INR25.0 Million Letter of Credit P4+ (Upgraded from 'P4')
Limit
INR308.0 Million Letter of Comfort P4+ (Upgraded from 'P4')
Limit
The upgrade reflects the improvement in MAL's liquidity on
repayment of optionally convertible cumulative preference shares
(OCCPS), the growth in MAL's revenues and margins, and the
improvement in its capital structure, as the company's operations
have stabilised since its inception in 2005.
The OCCPS with a face value of INR32.16 million were repaid out of
the INR300 million received against the 75,000 compulsorily
convertible preference shares issued to Orbimed healthcare fund
management (Orbimed, the world's largest healthcare-dedicated
investment firm). MAL's turnover increased to an estimated INR948
million in 2009-10 (refers to financial year, April 1 to
March 31), from INR819 million in 2008-09, while its operating
margin increased to an estimated 11 per cent from 7 per cent over
the same period. CRISIL believes that MAL's operating margin will
remain at a similar level, while its turnover will register a
modest growth of around 20 per cent over the medium term on the
back of sustained demand for clinical trials and clinical data
management services. MAL's gearing improved to an estimated 1.2
times as on March 31, 2010, from 1.53 times a year earlier,
because of debt repayment and increased net worth aided by higher
accruals. The company's gearing is likely to improve over the
medium term on account of low incremental debt-funded capital
expenditure (capex) and steady accruals.
However, the rating also reflects MAL's small scale of operations
and exposure to risks related to intense competition in the
contract research industry and adverse regulatory changes, and to
sponsor risks. These rating weaknesses are partially offset by
MAL's promoters' extensive experience in the contract research
industry, high-quality research facilities, and moderate financial
risk profile, marked by healthy debt protection metrics.
Outlook: Stable
CRISIL believes that MAL will continue to benefit from its
established track record in the contract research segment and its
high-quality research facilities. The outlook may be revised to
'Positive' if MAL's revenues and profits continue to grow
significantly, and the company improves its market position in the
clinical research industry, or strengthens its financial risk
profile through equity infusion. Conversely, the outlook may be
revised to 'Negative' if MAL's financial risk profile weakens on
account of a significant decline in its cash accruals or because
of debt-funded capex.
About Manipal AcuNova
Set up in 2005 by MEMG International India Pvt Ltd and Acunova
Life Sciences Pvt Ltd, MAL is a contract research organisation
providing services such as clinical trials, bio-availability/bio-
equivalent studies, clinical data management, site management, and
central reference lab facility. It has research facilities in
Bengaluru, Mangalore, and Manipal (all in Karnataka), and overseas
operations in Europe and the US, through wholly owned
subsidiaries. Orbimed has invested INR300 million in MAL in 2009-
10.
MAL reported an estimated profit after tax (PAT) of INR30 million
on net sales of INR938 million for 2009-10, against a net loss of
INR14 million on net sales of INR807 million for 2008-09.
MICRO INSTRUMENTS: CRISIL Reaffirms 'BB+' Rating on Cash Credit
---------------------------------------------------------------
CRISIL's rating on the cash credit facility of Micro Instruments
Company continues to reflect Micro's small scale of operations in
the highly fragmented electrical motor and electromechanical
components manufacturing industry, and exposure to customer
concentration risk. These weaknesses are partially offset by the
firm's moderate financial risk profile.
Facilities Ratings
---------- -------
INR68 Million Cash Credit BB+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Micro will sustain its financial risk profile
over the medium term, because of its low gearing and absence of
fixed repayment obligations. The outlook may be revised to
'Positive' in case the firm achieves higher-than-expected revenue
growth and profitability, resulting in higher cash accruals,
and/or its working capital management improves. Conversely, the
outlook may be revised to 'Negative' if Micro makes any large,
debt-funded capital investment, impacting its capital structure,
and/or its profitability declines due to competitive pressures.
Update
Micro has registered a year-on-year revenue growth of around 26
per cent in 2009-10 (refers to financial year, April 1 to
March 31), mainly on account of the increased offtake from
existing customers. One of the firm's large customer, has
increased its offtake by more than 30 per cent. Micro's
profitability levels continue to remain in line with CRISIL's
expectation.
Micro's capital expenditure (capex) plans are in line with
CRISIL's expectations. The firm is currently executing a capex
programme of INR15 million to INR20 million. The capex is for
setting up a new factory to cater to the increased domestic and
export demand. Till date, the firm has spent between INR6 million
and INR7 million on this programme. It has not taken any loans for
this capex. Micro's management has indicated that it does not have
any further capex plans for the near term as it would like to
first stabilise operations in the new factory being set up. The
firm's gearing is estimated to be in the range of 0.5 to 0.6 times
as on March 31, 2010.
About Micro Instruments
Set up in 1989, Micro is an Ambala (Haryana)-based partnership
firm started by Mr. Sharat Chander Gupta, Mr. Rajni Kant, and Mrs.
Asha Kant. Micro manufactures motors, fans, pumps, and valves,
which are used in electronic devices such as air conditioners,
refrigerators, washing machines, and computers. The firm has two
manufacturing facilities, both in the Ambala Cantonment. Its main
clients are Whirlpool, Blue Star Ltd, and Subros Ltd.
PANORAMA EXPORTS: CRISIL Lifts Ratings on Various Debts to 'P4+'
----------------------------------------------------------------
CRISIL has upgraded its rating on the short-term bank facilities
of Panorama Exports Pvt Ltd to 'P4+' from 'P4'.
Facilities Ratings
---------- -------
INR100.0 Million Export Packing Credit P4+ (Upgraded from 'P4')
INR40.0 Million Bills Discounting P4+ (Upgraded from 'P4')
INR2.5 Million Letter of Credit P4+ (Upgraded from 'P4')
INR1.0 Million Bank Guarantee P4+ (Upgraded from 'P4')
The rating upgrade has been driven by PEPL's more-than-expected
growth in topline, increased diversification of customer base, and
improvement in working capital management. PEPL's topline
increased at a compound annual growth rate (CAGR) of 50 per cent
between 2008-09 and 2009-10; its topline was INR622 million in
2009-10; the topline growth was driven primarily by increasing
demand for the company's product and increased diversification of
its customer base. PEPL's dependence on its top customer has
reduced to below 50 per cent in 2009-10 from more than 70 per cent
previously. PEPL's working capital management has also improved;
its gross current asset level reduced to 145 days in 2009-10 from
180 to 200 days in the previous three years. The upgrade also
reflects CRISIL's belief that PEPL's topline will continue to
increase in near term, supported by a larger order book.
The rating reflects PEPL's small scale of operations, small net
worth, and exposure to competitive pressures in export markets,
and high geographic and client concentration in revenue profile.
These rating weaknesses are partially offset by PEPL's strong
track record and healthy clientele in the garment exports
industry, and its moderate financial risk profile, marked by
average gearing and comfortable debt protection measures.
About Panorama Exports
Incorporated in 1974, PEPL manufactures and exports garments for
women and kids. Women's wear contributes around 70 per cent of the
company's revenues, and kids' wear contributes the rest. PEPL
exports its entire product range to customers in Europe. The
company's plant, located at Faridabad, Haryana, has capacity to
manufacture around 300,000 pieces of basic garments per month.
PEPL reported a profit before tax (PBT) of INR30.4 million on net
sales of INR576.0 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PBT of INR22.1 million on net
sales of INR410.1 million for 2008-09.
RELIABLE INDUSTRIES: CRISIL Reaffirms 'BB' Ratings on Bank Debts
----------------------------------------------------------------
CRISIL's rating on Reliable Industries' bank loan facilities
continues to reflect Reliable's weak financial risk profile,
marked by small net worth and weak debt protection measures, and
its exposure to risks related to low bargaining power with
automobile manufacturers and to intense competition in the
automobile dealership market. These rating weaknesses are
partially offset by Reliable's moderate business risk profile,
backed by its strong relationships with its principals.
Facilities Ratings
---------- -------
INR145.0 Million Cash Credit BB/Stable (Reaffirmed)
INR15.0 Million Term Loan BB/Stable (Reaffirmed)
INR20.0 Million Standby Line BB/Stable (Reaffirmed)
of Credit
Outlook: Stable
CRISIL believes that Reliable will maintain its moderate business
risk profile over the medium term, backed by its established
relationships with its principals. Significant improvement in
Reliable's operating margin may drive a revision in the outlook to
'Positive'; conversely, large, debt-funded capital expenditure and
diversification into unrelated businesses may result in the
outlook being revised to 'Negative'.
Update
Reliable is estimated to report 20 per cent increase in operating
income in 2009-10 (refers to financial year, April 1 to March 31)
backed by strong growth in automobiles and industrial goods demand
in Dhanbad and other major cities of Jharkhand. The firm's
operating margin is estimated to be stable at around 3.2 per cent
for 2009-10. Its liquidity is stretched because of high bank
limit utilization, averaging around 97 per cent, over the 12
months through March 2010. Reliable plans to set up a new Maruti
outlet in Dhanbad at an estimated cost of INR30 million over the
near term, to be funded at an estimated gearing of 2:1.
Reliable reported a profit after tax (PAT) of INR8 million on net
sales of INR1.09 billion for 2008-09, as against a PAT of INR4
million on net sales of INR898 million for 2007-08. Reliable is
estimated to report a profit before tax of INR6.8 million on an
operating income of INR1.30 billion for 2009-10.
About Reliable Industries
Set up in 1984 as a partnership firm by Mr. Rajiv Sabhlok and his
mother, Mrs. Janak Sabhlok, Reliable is an authorised dealer for
Hero Honda Ltd in Dhanbad. It has been a dealer to Atlas Copco
India Ltd from 1987 and to Maruti Suzuki India Ltd from 2001. It
has showrooms and service stations at Dhanbad, Deogarh, Giridih,
and Saraidhela (all in Jharkhand).
SALASAR RETAIL: CRISIL Assigns 'D' Rating to INR33.7MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'D' rating to Salasar Retail Ltd's bank
facilities.
Facilities Ratings
---------- -------
INR65.0 Million Cash Credit D (Assigned)
INR33.7 Million Term Loan D (Assigned)
The rating reflects delay by Salasar in servicing its term loan;
the delay has been caused by Salasar's weak liquidity. Salasar
has a small scale of operations and negative net worth (estimated)
as on March 31, 2010.
Set up in 2002, Salasar is a chain of retail outlets primarily
dealing in apparel and branded jewellery. The company presently
operates nine outlets, with two retail outlets in New Delhi (Karol
Bagh and Rajouri Garden) and one each in Agra, Allahabad (Uttar
Pradesh), Gwalior, Indore (Madhya Pradesh), Cuttack (Orissa),
Raipur (Chhattisgarh), and Guwahati (Assam). Salasar is now a
subsidiary of Gitanjali Lifestyle Ltd (a subsidiary of Gitanjali
Gems Ltd), which held a 76-per-cent equity stake in Salasar as on
March 31, 2010. Previous owners of Salasar, Mr. Ashok Tibrewal,
Mr. Sumit Sonthalia and Mr. Pradeep Kumar Saraogi sold 76 per cent
stake in the company to Gitanjali Lifestyle Ltd for a
consideration of INR87 million in 2009-10. 'Salasar' retail stores
are in the process of being revamped and rechristened as 'Maya by
Gitanjali Lifestyle' stores and this process is expected to be
completed by December, 2010.
Salasar reported a net loss of INR74 million on net sales of
INR422 million for 2008-09 (refers to financial year, April 1 to
March 31), against a net profit of INR0.01 million on net sales of
INR642 million for 2007-08.
SATGURU FOUNDATIONS: CRISIL Assigns 'D' Ratings to Various Debts
----------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to Satguru Foundations
(Regd.)'s bank facilities.
Facilities Ratings
---------- -------
INR10.0 Million Cash Credit Limit D (Assigned)
INR56.4 Million Term Loan D (Assigned)
INR18.3 Million Proposed Long-Term D (Assigned)
Bank Loan Facility
INR14.0 Million Bank Guarantee P5 (Assigned)
The ratings reflect delay by SF in servicing its term loan; the
delay has been caused by short-term mismatch of funds.
SF has weak financial risk profile, marked by high gearing and
below-average debt protection metrics. SF, however, benefits from
healthy demand prospects for hospitals and medical colleges in
India
SF, set up in 1995, is a society formed by Dr. Zora Singh. It
started a dental-college-cum-hospital, under the names Desh Bhagat
Dental College and Hospital at Muktsar (Punjab) in 2000. The
dental college has 100 seats in the Bachelor of Dental Surgery
course, and is affiliated to the Baba Farid University of Health
Sciences, Faridkot (Punjab), and is recognised by the Dental
Council of India and Ministry of Health and Family Welfare,
Government of India. The multi-speciality hospital has 20 beds in
the general ward and 200 dental chairs in the dentistry ward.
SF's surplus and net fees received are estimated to be INR2.4
million and INR67 million, respectively, for 2009-10 (refers to
financial year, April 1 to March 31), against a reported surplus
of INR2.1 million on net fees received of INR34 million for
2008-09.
SHRI MALAPRABHA: ICRA Reaffirms 'LBB' Rating on Various Debts
-------------------------------------------------------------
ICRA has reaffirmed the long term rating of 'LBB' assigned to the
basal dose loan, term loans and pledge loan facility of Shri
Malaprabha Sahakari Sakkare Karkhane Niyamitha aggregating to
INR8.0 crore, INR7.2 crore and INR40.0 crore respectively. ICRA
has assigned a stable outlook on the rating.
The rating continues to be constrained by the small size of
operations of the company with low cash generation, high working
capital intensity on account of government control on inventory,
exposure of the company's operations to agro-climatic risks and
cyclical trends in sugar business and vulnerability to changes in
regulatory policies. Despite the improvement in operating
profitability (OPBDITA/OI) in FY 2010, the company's net
profitability remains low (~2%) on account of high interest burden
and also the fact that the company routes the profits to the
farmers in the form of incentives such as subsidized sugar,
compost, sugarcane seeds etc. The rating is however supported by
the forward integration of the company's sugar operations into
distillery operations, high recovery rates present in Northern
Karnataka region and significant increase in sugar prices during
SY (Sugar Year) 2009 and SY 2010 leading to healthy contribution
margins in sugar business, though correction has been witnessed in
the same since February 2010. ICRA notes that on account of the
high cost of inventory that the company is currently carrying, any
significant decline in sugar realizations would deteriorate the
financial profile of the company further.
About Shri Malaprabha
Shri Malaprabha Sahakari Sakkare Karkhane Niyamitha (SMSSK) is
registered under Cooperative Societies Act of Karnataka. The unit
is located on the Bangalore Pune National Highway at Mugutha
Khan Hubli, around 30 km from Belgaum town. The area of operation
of the factory consists of villages coming under Belgaum,
Ballhongal, Khanapur Talukas and some villages of Dharwad,
Soundatti and Haliyal Talukas. The sugar factory was conceived in
the year 1961 and was commissioned in 1971 with an initial
capacity of 1250 TCD, which was increased to 2500 TCD by 1978 and
then to 3500 TCD in 1982. A 30 KLPD distillery unit to the factory
was added in the year 1992. SMSSK is largely held by sugarcane
growing farmers of the area. The remaining stake is held by non-
cane growing farmers and co-operative societies of the region.
During FY 2010, the company reported operating income of INR 57.67
crore and Profit After Tax (PAT) of INR 1.14 crore.
SHREE GITA: ICRA Assigns 'LBB' Rating to INR12cr Cash Credit
------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR12.00 crore cash
credit facility of Shree Gita Ginning & Oil Industries. The
outlook for the rating is stable. ICRA has also assigned an A4
rating to the INR10.00 crore, short-term, line of credit facility
of SGGOI.
The ratings are constrained by low margins in the business; highly
competitive nature of the edible oil industry; the vulnerability
of the company's profitability to the customs duty differential
between crude and refined oil, raw material price fluctuations and
the climatic risks associated with procurement of the raw
materials. The ratings also take into account single product
portfolio which exposes the firm to the price trends and market
conditions for raw cotton; the threat of substitution reflected by
the increasing consumption of other cheaper substitutes
particularly palm oil and the limited presence of the brand
"Shree Gita", mainly concentrated in the Saurashtra region. ICRA
also notes that SGGOI is a partnership firm and any significant
withdrawals from the capital account would affect its capital
structure.
The ratings however positively consider the strong track record of
the promoters with more than three decades of experience,
advantage by virtue of being located in the cotton producing belt
of India as well as in the highest cottonseed oil consuming state
of India; integrated operations of the firm which reduces its
dependence on the crude oil, moderate regional presence of its
brand giving it higher visibility over other unorganized players
and a positive demand outlook for edible oil with the traditional
deficit in edible oil production in India.
About Shree Gita
Shree Gita Ginning & Oil Industries is a partnership firm
established in 1976 by Mr. Naginkumar V. Bhojani and 4 other
partners. However, currently, the business is completely owned
and managed by Mr. Naginkumar V. Bhojani and his family members.
SGGOI is engaged in ginning of raw cotton to produce cotton bales,
pressing of cotton seeds, sale of oil cakes and refining of edible
oil. The firm has its production facility located at Morbi,
Gujarat. SGGOI has a capacity to process 60000 MT of raw cotton,
42000 MT of cotton seed and 18000 MT of crude oil annually. The
firm sells oil cakes and edible oil under its own registered brand
name Shree Gita.
Recent Results
During FY 2010, the firm reported an operating income of INR135.09
Cr. and profit after tax of INR0.02 Cr.
SRI SAI: CRISIL Assigns 'D' Ratings to INR395.4MM Long Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'D' rating to Sri Sai Sindhu Industries
Ltd's bank facilities. The rating reflects delay by SSSIL in
servicing its term loan; the delay has been caused by SSSIL's weak
liquidity.
Facilities Ratings
---------- -------
INR395.40 Million Long-Term Loan D (Assigned)
INR100.00 Million Cash Credit D (Assigned)
SSSIL's financial risk profile is weak, marked by high gearing and
weak debt protection metrics. The company is also susceptible to
volatility in raw material prices and to economic slowdown. SSSIL,
however, benefits from its promoters' experience in the sponge
iron business and established relationships with its customers.
Set up in 2003, SSSIL, based in Tadipatri (Andhra Pradesh),
manufactures sponge iron. The company has a sponge iron
manufacturing capacity of 175 million tonnes per day. SSSIL is
setting up an 8-megawatt (MW) co-generation power plant, of which
4 MW will be waste-heat based and 4 MW will be
coal/dolochar/biomass-based. The company is in talks with Tata
Power Company Ltd and Global Energy Ltd for power purchase
agreements.
SSSIL reported a profit after tax (PAT) of INR16.7 million on net
sales of INR 262.5 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR11.3 million on net
sales of INR218.2 million for 2008-09.
STELLENCE PHARMSCIENCE: CRISIL Reaffirms 'B-' Ratings on Debts
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Stellence Pharmscience
Ltd continue to reflect SPL's below-average financial risk profile
marked by weak debt protection measures, weak operating
efficiencies, and exposure to risks relating to intense
competition from domestic pharmaceutical players and pricing
pressures in the global generics market. These rating weaknesses
are partially offset by the benefits that SPL derives from the
experience of its promoters in the pharmaceutical industry.
Facilities Ratings
---------- -------
INR140 Million Long-Term Loan B-/Negative (Reaffirmed)
INR5 Million Cash Credit Facilities B-/Negative (Reaffirmed)
INR25 Million Packing Credit P4 (Reaffirmed)
INR20 Million Letter of Credit and P4 (Reaffirmed)
Bank Guarantee
For arriving at the ratings, CRISIL has treated the unsecured
loans of INR140 million out of the total loans of INR194.45
million from Avigna Chemitech Pvt Ltd as equity, as Avigna has
provided an undertaking to the bank stating that this amount is
earmarked for conversion into equity funds.
Outlook: Negative
CRISIL believes that SPL's credit risk profile will continue to be
under pressure over the medium term given the company's large debt
contracted for capital expenditure (capex). The company's ability
to meet its term debt obligations from its operating cash flows
will be constrained over the medium term. The rating could be
downgraded if the company is unable to meet its term debt
obligations on the pre-agreed date. Conversely, the outlook may be
revised to 'Stable' in case SPL's expected long-term contracts in
the domestic as well as global markets result in higher-than-
expected sales and profitability, thereby improving its financial
risk profile, along with a significant diversification in its
revenue stream.
About Stellence Pharmscience
SPL was originally incorporated on January 1, 1992, as Karnataka
Chemsyn Ltd for setting up a project in the joint sector with
Karnataka State Industrial Investment and Development Corporation
Ltd to manufacture life-saving bulk drugs ? active pharmaceutical
ingredients (APIs). The name of the company was changed with
effect from April 1, 2010. SPL develops APIs such as iopamidol,
propyphenazone, L- Selemonethionine, and others for leading
generic drug manufacturers. Avigna, a strategic investor, has
infused around INR230 million as unsecured loans between 2005 and
2009 to revive SPL. A part of the funds infused were utilised to
repay the amounts due to financial institutions and secured
creditors, and the balance to fund capex. As on March 31, 2010,
SPL had unsecured loans of INR194.45 million, and INR62 million as
redeemable preference shares, from Avigna. Of the total unsecured
loans, INR140 million is proposed to be converted to equity in due
course. The company was recently discharged from the purview of
the Board for Industrial and Financial Reconstruction following
the infusion of preference share capital by Avigna, which had
resulted in the net worth turning positive.
SPL reported a provisional net loss of INR10 million on net sales
of INR68.5 million in 2009-10 (refers to financial year, April 1
to March 31), as against a net loss of INR20 million on net sales
of INR19.8 million in 2008-09.
VICHI AGRO: CRISIL Assigns 'B' Rating to INR75 Mil. Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the bank facilities
of Vichi Agro Products Pvt Ltd.
Facilities Ratings
---------- -------
INR75.0 Million Cash Credit B/Stable (Assigned)
INR24.3 Million Rupee Term Loan B/Stable (Assigned)
INR20.7 Million Proposed Long-Term B /Stable (Assigned)
Bank Loan Facility
The rating reflects Vichi's weak financial risk profile marked by
a small net worth and high gearing, and its exposure to debtor and
inventory risks. These rating weaknesses are partially offset by
the benefits that Vichi derives from its established relationships
with customers.
Outlook: Stable
CRISIL believes that Vichi will maintain its moderate revenue
growth, driven by its enhanced processing capacity, over the
medium term. The outlook may be revised to 'Positive' if Vichi
increases its net worth significantly by infusing equity or
generates higher-than-expected revenue growth, while improving its
profitability. Conversely, the outlook may be revised to
'Negative' if the company's debt protection metrics are adversely
affected because of larger-than-expected, debt-funded capital
expenditure, or if the company's cash accruals decline because of
competitive pressures in the industry.
About Vichi Agro
Vichi processes agro products such as rice, wheat, and dal. The
company has a rice plant and a packing unit in Mhape
(Maharashtra). It cleans, grades, sorts, and packs agro products
and sells them to various modern organised retailers such as Big
Bazaar, Apna Baazar, D-Mart, and Sahakari Bhandar. Recently the
company set up a rice processing mill in Gujarat, with capacity of
100 tonnes per day. Vichi has also entered into an agreement to
have around 22 stores under its 6TEN retail brand in Mumbai
(Maharashtra).
Vichi reported a profit after tax (PAT) of INR1.1 million on net
sales of INR 394 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.3 million on net sales
of INR375.2 million for 2008-09.
=========
K O R E A
=========
DAEWOO SHIPBUILDING: Expects KRW9 Tril. in Sales From Wind Power
----------------------------------------------------------------
Daewoo Shipbuilding & Marine Engineering Co. aims to generate
30% of sales from wind power by 2020 as pollution concerns spur
demand for alternative energy, Bloomberg News reports.
Chief Strategy Officer Koh Young Youl told that the company
expects as much as KRW9 trillion ($7.5 billion) of wind-power
sales in 2020, from about $25 million this year. The company
earned 99% of revenue from building ships and offshore equipment
last year, Bloomberg notes.
Bloomberg says Daewoo, which already makes turbines, may also run
wind farms, build vessels for installing offshore units and open a
generator factory in China as Korean shipbuilders seek new
businesses to offset rising competition from Chinese yards.
"It is our plan to eventually be able to provide a full chain of
services for wind energy -- from making turbines to operating
mills," Mr. Koh told Bloomberg. The Seoul-based shipyard is
developing its first offshore wind turbine, he said.
According to Bloomberg, Mr. Koh said the company plans to pick a
site for a factory in China, the biggest market for wind energy,
by year-end. "We expect demand for wind turbines to grow as there
are still a lot of places in China that need power," Mr. Koh said.
The company will use locally made parts at the plant and it may
also help its suppliers set up factories, he said.
The company is considering plans to set up its own wind farms in
Europe and North America, Mr. Koh added, Bloomberg relates.
About Daewoo Shipbuilding
Headquartered in Seoul, South Korea, Daewoo Shipbuilding &
Marine Engineering Co. -- http://www.dsme.co.kr/-- is engaged in
building ships and offshore structures. Its product portfolio
includes commercial ships, such as liquefied natural gas (LNG)
carriers, oil tankers, containerships, liquefied petroleum gas
(LPG) carriers, pure car carriers; offshore structures, such as
FPSO vessels, drilling rigs, drillships and fixed platforms, and
naval vessels, including submarines, destroyers, rescue ships and
patrol boats.
* * *
Daewoo Shipbuilding & Marine Engineering Co. has been under a
creditors-led corporate restructuring program since 1999 along
with some other affiliates after its parent, Daewoo Group,
collapsed under heavy debt exposure. Daewoo Shipbuilding is up
for sale and the Korea Development Bank and Korea Asset Management
Corporation started the sale process of their remaining stakes in
the second half of 2006.
====================
N E W Z E A L A N D
====================
AORANGI SECURITIES: Investors Want Statutory Management to End
--------------------------------------------------------------
A group of 71 investors have written to Commerce Minister Simon
Power asking him to terminate the statutory management of Aorangi
Securities Ltd. and other entities associated with Timaru
businessman Allan Hubbard and his wife Jean, The National Business
Review reports.
NBR says the letter, copied to all cabinet ministers, was sent by
supporter Tony Brazier on behalf of the investors. It was
circulated by law firm Chen Palmer.
As reported in the Troubled Company Reporter-Asia Pacific on
June 23, 2010, Bloomberg News said New Zealand appointed statutory
managers for Aorangi Securities Ltd. and seven trusts, which are
associated with Allan Hubbard, to protect investors and prevent
fraud. Citing Commerce Minister Simon Power's e-mailed statement,
Bloomberg related that Mr. Hubbard and his wife are also subject
to statutory management because they are so closely connected with
the businesses. The seven charitable trusts included in the
statutory management are Te Tua, Otipua, Oxford, Regent, Morgan,
Benmore and Wai-iti. Trevor Thornton and Richard Simpson of Grant
Thornton were appointed as statutory managers. More than 400
investors in Aorangi Securities owed NZ$96 million have been told
by the statutory managers they will not receive any return of
capital or interest in the short term, stuff.co.nz said.
According to NBR, the letter said that it is unfair to prolong Mr.
and Mrs. Hubbard's humiliation and distress. The statutory
management process has, to date, provided no evidence of
substantial wrong doing by Mr. Hubbard, the report adds.
Aorangi Securities was incorporated in 1974 and is solely
controlled by the Hubbards.
AVANTI FINANCE: S&P Gives Stable Outlook; Affirms 'BB-/B' Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services announced that it has revised
its outlook on Avanti Finance Ltd.'s rating to stable, from
negative. At the same time S&P affirmed its 'BB-/B' long-term and
short-term counterparty credit ratings on Avanti.
"The outlook revision reflects S&P's view that Avanti will
continue to successfully manage its asset quality and credit
costs. This will underpin its ability to generate strong interest
income and pay above-market returns to debenture investors, which
will support its ability to manage its funding and liquidity,"
Standard & Poor's credit analyst Peter Sikora said. "In S&P's
opinion, this in turn will ensure its debenture investors and
group bankers remain confident and supportive."
Avanti is a midsize New Zealand-based finance company engaged in
personal lending, motor vehicle dealer loans, and short-term
property loans. Avanti's ratings reflect its focus on higher-risk
lending segments, which have higher loan arrears and are more
susceptible to credit losses when operating conditions deteriorate
or if arrears management is relaxed. That said, Avanti's credit
loss experience benefits from good loan security and the proactive
management of loan arrears.
"S&P would consider lowering the ratings if Avanti were to lose
debenture investor or banker support, either through financial
pressures emerging at Avanti or stemming from broader market
pressures such as a loss of confidence in the finance company
sector as a result of additional company failures," Mr. Sikora
said. "That said, support has been strong with some 99% of
debentures now maturing after the Oct. 12, 2010 expiry of the
initial government retail deposit guarantee."
On the other hand, there are limited prospects for the rating to
be raised in the short-to-medium term. This reflects Standard &
Poor's view of limitations around Avanti's credit profile,
particularly the high-risk nature of its lending activities, its
small size, and key-person risk.
CRAFAR FARMS: Receivers Want Printer Forensically Examined
----------------------------------------------------------
The Dominion Post reports that the Crafar family will go back to
"living on the edge" after a High Court judge adjourned for a
month their legal challenge to receivers trying to evict them from
their Reporoa farmhouses.
According to the report, Allan Crafar said after a hearing in the
High Court at Rotorua that receiver KordaMentha wants a printer
which processed tenancy agreements between family members and the
Crafar company forensically examined.
The Post relates Mr. Crafar said three separate tenancy agreements
had been drawn up in 2006 when he and his wife moved into a new
house on their Reporoa farm, and the couple's son moved into the
old one. The farm is one of 16 in receivership and under a
conditional sale agreement.
The report notes that since the Crafars used the agreements to
challenge the eviction orders, the papers had been forensically
examined by Wellington police for the receivers, and the Crafars
had sought opinion from an independent forensic consultant.
As reported in the Troubled Company Reporter-Asia Pacific on
June 3, 2010, The New Zealand Herald said receivers KordaMentha
are trying to get a court order to remove Allan Crafar from his
Reporoa property, after he rejected an offer for six months' free
rent if he left the farm on April 9. KordaMentha said Mr. Crafar,
as the director of Plateau Farms Limited (in receivership), no
longer controlled the properties and therefore had no legal right
to be living there. Mr. Crafar has always maintained he would
defend any court action brought against him by receivers.
About Crafar Farms
Crafar Farms, New Zealand's largest family owned dairy business,
runs about 20,000 milking cows, and carries about 10,000 of other
stock. The company employs 200 staff.
Crafar Farms was placed in receivership by its lenders Westpac
Banking Corp., Rabobank Groep and PGG Wrightson Finance. The
banks are owed around NZ$200 million and put KordaMentha partners
Michael Stiassny and Brendon Gibson in as receivers after Crafar
Farms breached covenants on its loans.
The New Zealand Herald said CraFarms' banks have been working with
the Ministry of Agriculture and Forestry, Federated Farmers and
Fonterra to ease the Crafars out of their business. This follows
multiple convictions for environmental lapses and animal neglect
in recent years and the revelation on September 28, 2009, from
interest.co.nz of animal neglect on one of its large farms in the
King Country near Benneydale.
===========
T A I W A N
===========
AMERICAN INTERNATIONAL: Nan Shan Sale Still Under Review, FSC Says
------------------------------------------------------------------
Crystal Hsu at The Taipei Times reports that Taiwan's Financial
Supervisory Commission said Tuesday that the planned sale by
American International Group Inc. of its stake in Nan Shan Life
Insurance Co. remains under review, after reports that AIG plans
to lay off Nan Shan employees if the deal fails.
"There is no new development, as far as I understand," FSC Vice
Chairman Wu Tang-chieh told a routine news conference, according
to Taipei Times. "The commission doesn't have an exclusive say on
the matter."
According to the Taipei Times, Mr. Wu made the brief statements
following media reports on Monday that AIG plans to cut Nan Shan's
staff by 60 percent if regulators reject the purchase by a
Hong Kong consortium.
The Taipei Times notes that the consortium, comprising China
Strategic Holdings Ltd. and Primus Financial Holdings Ltd.,
announced in October last year that it planned to acquire Nan Shan
from the debt-ridden AIG for US$2.15 billion.
AIG said Tuesday it was committed to closing the Nan Shan sale and
was confident it would obtain Taiwanese regulatory approval, the
Taipei Times says. AIG also said it "has no intention of selling
its stake to any other party, and for example, will not entertain
an offer from Chinatrust."
Taiwanese regulators, the FSC and the Investment Commission under
the Ministry of Economic Affairs are due to hand down a decision
in October, which is the deadline AIG set for the consortium, the
report related.
About AIG
American International Group, Inc. -- http://www.aig.com/-- is an
international insurance organization with operations in more than
130 countries and jurisdictions. AIG companies serve commercial,
institutional and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In
addition, AIG companies are leading providers of life insurance
and retirement services around the world. AIG common stock is
listed on the New York Stock Exchange, as well as the stock
exchanges in Ireland and Tokyo.
In September 2008, AIG experienced a liquidity crunch when its
credit ratings were downgraded below "AA" levels by Standard &
Poor's, Moody's Investors Service and Fitch Ratings. AIG almost
collapsed under the weight of bad bets it made insuring mortgage-
backed securities. The Company, however, was bailed out by the
Federal Reserve, but even after an initial infusion of
$85 billion, losses continued to grow. The later rescue packages
brought the total to $182 billion, making it the biggest federal
bailout in U.S. history.
AIG has been working to protect and enhance the value of its key
businesses, execute an orderly asset disposition plan, and
position itself for the future. AIG has sold a number of its
subsidiaries and other assets to pay down loans received from the
U.S. government, and continues to seek buyers of its assets.
*********
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 ***