/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100924.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 Friday, September 24, 2010, Vol. 13, No. 189 Headlines A U S T R A L I A CORAL COAST: Magistrate Says Creditors Won't Recover Money GOANNA PRINT: Goes Into Administration TASCOT TEMPLETON: In Administration; 150 Jobs Hang in Balance H O N G K O N G AMERICAN INT'L: Has HK Bourse's OK for AIA IPO AUTUMN LIMITED: Court Enters Wind-Up Order BIG INCOME: Court Enters Wind-Up Order CHAN'S MACHINE: Court Enters Wind-Up Order CHINA SOONG: Court Enters Wind-Up Order CHINA WHEEL: Court Enters Wind-Up Order CONCEPT BRIGHT: Court to Hear Wind-Up Petition on October 20 DANZEN TRADING: Court Enters Wind-Up Order DECOR ONE: Court Enters Wind-Up Order DREAM LINK: Court Enters Wind-Up Order E S I COURIER: Court Enters Wind-Up Order FITNESS CENTRE: Creditors' Proofs of Debt Due October 8 GAIN PROFIT: Court to Hear Wind-Up Petition on November 10 GLITTER POWER: Court Enters Wind-Up Order H.K. SIEMENTS: Court Enters Wind-Up Order HOUSE OF CHRISTIANIA: Court Enters Wind-Up Order INTER-AUTO ENGINEERING: Court Enters Wind-Up Order LEHMAN BROTHERS: HKMA Reports on Progress of Minibond Cases LUCKY TECH: Court Enters Wind-Up Order LUNG HING: Court Enters Wind-Up Order MILLENNIUM BANK: Court to Hear Wind-Up Petition on October 13 SEALINK SHIPPING: Court to Hear Wind-Up Petition on September 29 SHISEI (PNG): Court Enters Wind-Up Order UNIVERSAL SHEEN: Creditors' Proofs of Debt Due October 6 ZACC LIMITED: Court Enters Wind-Up Order I N D I A AMIT METALIKS: CARE Assigns 'CARE C' Rating to LT Bank Facilities AMORPHOS CHEMICALS: Fitch Assigns 'B+' National Long-Term Rating M&M CHOCOLATES: CARE Rates INR13.6cr LT Bank Loans at 'CARE BB+' NAGPUR ESTATES: CRISIL Rates INR55MM Term Loan at 'BB' PROCTOR MARKETING: CARE Puts 'CARE BB+' Rating on INR10cr LT Loans RAJLAXMI CONSTRUCTIONS: CRISIL Reaffirms 'C' Rating on Cash Credit S L OBERAI: CRISIL Reaffirms 'B' Rating on INR18MM Long-Term Loan SAN MEDIA: CRISIL Cuts Rating on INR45 Million Term Loan to 'B+' SANJAY STEELS: CRISIL Rates INR120 Million Cash Credit at 'B+' SUDHIR FORGINGS: CRISIL Puts 'BB' Rating on INR19.3MM Cash Credit TIKONA DIGITAL: CRISIL Rates INR6 Billion Term Loan at 'BB' TUFTS INTERNATIONAL: CARE Rates INR8.2cr Short-Term Loan at 'PR4' I N D O N E S I A GARUDA INDONESIA: Delays Planned IPO to February Next Year J A P A N AMERICAN INT'L: Has Deal to Sell 2 Japanese Units to Prudential N E W Z E A L A N D AORANGI SECURITIES: HC Partners Directors Caught Up in Hubbard Web LIGHTER QUAY: Owners Want to Cancel Leases of 19 More Rooms PROPERTY FOOD: Receivers Move on NZ$1 Million Waimarama Mansion SOUTH CANTERBURY: Trustee Repays NZ$350 Million to Bondholders * NEW ZEALAND: Number of Firms Going Insolvent Rises S R I L A N K A * Moody's Assigns 'B1' Issuer Rating on Sri Lanka Government T A I W A N AMERICAN INT'L: Aborts Deal With Consortium Over Nan Shan Sale V I E T N A M MILITARY COMMERCIAL: Moody's Assigns First Time Low-B Ratings X X X X X X X X * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= CORAL COAST: Magistrate Says Creditors Won't Recover Money ---------------------------------------------------------- Dea Clark at ABC News reports that Brisbane Magistrate Alan Taylor said there is no prospect creditors of Coral Coast Homes Pty Ltd and Steelsmart Homes Pty Ltd will ever see their money. ABC News says company director John Biles pleaded guilty to nine charges that he took AU$150,000 from would-be home owners when he should have known his companies were insolvent. According to ABC News, Magistrate Taylor fined Mr. Biles AU$80,000 for the breaches, with an additional fine of AU$5,000 for misleading consumers into believing Steelsmart had a building licence. The court heard Mr. Biles had owned building companies twice before, and both times the businesses collapsed, ABC News notes. ABC News relates the magistrate said either Mr. Biles does not understand business finances or is guilty of something far worse. The company directors' finances are such that there is nothing left to repay creditors, the magistrate added. Coral Coast Homes Pty Ltd is a Bundaberg, Queensland-based building company. GOANNA PRINT: Goes Into Administration -------------------------------------- Daniel Fitzgerald at ProPrint reports that Goanna Print has gone into administration, with Managing Director Phil Abbott saying the company had struggled to remain competitive because "we didn't want to drop quality". The report relates that the company entered into voluntary administration with Frank Lo Pilato from RSM Bird Cameron Partners appointed as administrator on September 20, 2010. Mr. Pilato told ProPrint he had identified "cashflow problems" at the company. The report relates the company is continuing to trade, and Mr. Abbott told ProPrint he was "quietly confident" the administrators would be able to sell the business as a going concern. Mr. Abbott told ProPrint that no redundancies had been made among the 18-strong staff. As a supplier of "non-standard niche work", the company had struggled to adjust to a marketplace that is increasingly driven by price, he added, the report relates. Headquartered in Canberra-based Goanna Print was established in 1983, and grew rapidly into one of Canberra's foremost printers. TASCOT TEMPLETON: In Administration; 150 Jobs Hang in Balance ------------------------------------------------------------- Tascot Templeton Carpets has gone into administration after orders dried up, ABC News reports According to the report, the event is another economic blow for Tasmania's north-west, as 150 jobs with the a carpet weaving company is now at risk. The region has lost hundred of jobs this year in forestry, papermaking and vegetable processing. The administrators are now meeting workers at Tascot Templeton. ABC News relates that the Company was offered State government financial assistance last year when it reported demand for high- end carpet had stalled. Based in East Devonport, Australia, Tascot Templeton Carpets -- http://www.tascot.com.au/-- designs, manufactures and distributes carpets for both residential and commercial applications. The Company was established in 1961. ================ H O N G K O N G ================ AMERICAN INT'L: Has HK Bourse's OK for AIA IPO ---------------------------------------------- The Wall Street Journal's Nisha Gopalan reports that American International Group Inc. received approval Tuesday in Hong Kong for a US$10 billion to US$15 billion initial public offering of its pan-Asian life insurer AIA Group Ltd., a person familiar with the matter said, paving the way for what could be the world's second-biggest IPO this year. According to the Journal, with the approval in place, AIA is slated to list in Hong Kong on Oct. 29, the people said Monday, adding that pre-marketing of the IPO will start Sept. 27, and the roadshow will begin Oct. 6. According to the Journal, one person familiar with the deal said Tuesday that AIG was considering selling as much as 50% of AIA, but no decision had been made. The deal will be priced Oct. 21, one of the people said. AIA's IPO has 11 bookrunners, people familiar with the matter have said, according to the Journal. That is a record, according to Dealogic, and indicates AIG is determined to raise as much money as possible. Agricultural Bank of China had 10 bookrunners for its offering. According to the Journal, the bookrunners on AIA's IPO are: Barclays Capital, the investment-banking arm of Barclays PLC; J.P. Morgan Chase & Co.; Malaysian financial-services firm CIMB Group Holdings Bhd.; Citigroup Inc.; Goldman Sachs Group Inc.; Morgan Stanley; Deutsche Bank AG; Bank of America Corp.'s Bank of America Merrill Lynch; Credit Suisse Group; UBS AG; and the investment- banking arm of ICBC, ICBC International Holdings Ltd. Bookrunners help banks in charge of the sale, known as global coordinators, to sell the shares to investors. Citigroup, Goldman, Morgan Stanley and Deutsche Bank are the global coordinators, people familiar with the matter previously said, according to the Journal. 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. AUTUMN LIMITED: Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on September 8, 2010, to wind up the operations of Autumn Limited. The official receiver is E T O'Connell. BIG INCOME: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on July 16, 2010, to wind up the operations of Big Income Investments Limited. The company's liquidators are: Lui Tin Nang Chung Cheuk Ming Rooms 1214-1215, 12/F, Tower A New Mandarin Plaza, 14 Science Museum Road Tsimshatsui East, Kowloon, Hong Kong CHAN'S MACHINE: Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on January 11, 2010, to wind up the operations of Chan's Machine Engineering Company Limited. The company's liquidators are: Lui Tin Nang Chung Cheuk Ming Rooms 1214-1215, 12/F, Tower A New Mandarin Plaza, 14 Science Museum Road Tsimshatsui East, Kowloon, Hong Kong CHINA SOONG: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order to wind up the operations of China Soong Ching Ling Children's Foundation Limited. The company's liquidator is: John Lees Associates 20/F Henley Building 5 Queen's Road Central, Hong Kong CHINA WHEEL: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on September 8, 2010, to wind up the operations of China Wheel (HK) Company Limited. The official receiver is E T O'Connell. CONCEPT BRIGHT: Court to Hear Wind-Up Petition on October 20 ------------------------------------------------------------ A petition to wind up the operations of Concept Bright Investment Limited will be heard before the High Court of Hong Kong on October 20, 2010, at 9:30 a.m. The high court of The Hong Kong Special Administrative Region, Court of First Instance filed the petition against the company on August 9, 2010. The Petitioner's solicitors are: Edward C. T. Wong & Co. 4/F, Club Lusitano, 16 Ice House Street Central, Hong Kong DANZEN TRADING: Court Enters Wind-Up Order ------------------------------------------- The High Court of Hong Kong entered an order on July 16, 2010, to wind up the operations of Danzen Trading Hong Kong Limited. The company's liquidators are: Lui Tin Nang Chung Cheuk Ming Rooms 1214-1215, 12/F, Tower A New Mandarin Plaza, 14 Science Museum Road Tsimshatsui East, Kowloon, Hong Kong DECOR ONE: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on September 8, 2010, to wind up the operations of Decor One Design & Engineering Limited. The official receiver is E T O'Connell. DREAM LINK: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on August 19, 2010, to wind up the operations of Dream Link Limited. The company's liquidator is: John Lees Associates 20/F Henley Building 5 Queen's Road Central, Hong Kong E S I COURIER: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on May 29, 2010, to wind up the operations of E S I Courier (HK) Limited. The company's liquidators are: Lui Tin Nang Chung Cheuk Ming Rooms 1214-1215, 12/F, Tower A New Mandarin Plaza, 14 Science Museum Road Tsimshatsui East, Kowloon, Hong Kong FITNESS CENTRE: Creditors' Proofs of Debt Due October 8 ------------------------------------------------------- Creditors of The Fitness Centre Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by October 8, 2010, to be included in the company's dividend distribution. The company's liquidator is: William Nicholas Giles Room A, 19/F Harbour Commercial Building Nos. 122-124 Connaught Road Central, Hong Kong GAIN PROFIT: Court to Hear Wind-Up Petition on November 10 ---------------------------------------------------------- A petition to wind up the operations of Gain Profit International Holdings Limited will be heard before the High Court of Hong Kong on November 10, 2010, at 9:30 a.m. Dah Sing Bank Limited filed the petition against the company on September 3, 2010. The Petitioner's solicitors are: Anthony Chiang & Partners 3903 Tower 2, Lipp Centre 89 Queensway Central Hong Kong GLITTER POWER: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on May 26, 2010, to wind up the operations of Glitter Power Limited. The company's liquidators are: Lui Tin Nang Chung Cheuk Ming Rooms 1214-1215, 12/F, Tower A New Mandarin Plaza, 14 Science Museum Road Tsimshatsui East, Kowloon, Hong Kong H.K. SIEMENTS: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on August 12, 2010, to wind up the operations of H.K. Siements Electric Appliance Limited. The company's liquidators are: Lui Tin Nang Chung Cheuk Ming Rooms 1214-1215, 12/F, Tower A New Mandarin Plaza, 14 Science Museum Road Tsimshatsui East, Kowloon, Hong Kong HOUSE OF CHRISTIANIA: Court Enters Wind-Up Order ------------------------------------------------ The High Court of Hong Kong entered an order on August 30, 2010, to wind up the operations of The House of Christiania Asia Limited. The company's liquidator is: John Lees Associates 20/F Henley Building 5 Queen's Road Central, Hong Kong INTER-AUTO ENGINEERING: Court Enters Wind-Up Order -------------------------------------------------- The High Court of Hong Kong entered an order on September 8, 2010, to wind up the operations of Inter-Auto Engineering Limited. The official receiver is E T O'Connell. LEHMAN BROTHERS: HKMA Reports on Progress of Minibond Cases ----------------------------------------------------------- The Hong Kong Monetary Authority (HKMA) announced that investigation of over 99% of a total of 21,711 Lehman-Brothers- related complaint cases received has been completed. These include: * 14,307 cases which have been resolved by a settlement agreement reached under section 201 of the Securities and Futures Ordinance; * 2,503 cases which have been resolved through the enhanced complaint handling procedures required by the settlement agreement; * 2,600 cases which were closed because insufficient prima facie evidence of misconduct was found after assessment or no sufficient grounds and evidence were found after investigation; * 1,600 cases (including minibond cases) which are under disciplinary consideration after detailed investigation by the HKMA, of which proposed disciplinary notices are being prepared in respect of 829 such cases and proposed disciplinary notices or decision notices have been issued in respect of the other 771 cases; and * 525 cases in respect of which investigation work has been completed and are going through the decision process to decide whether there are sufficient grounds for disciplinary actions or whether the cases should be closed because of insufficient evidence or lack of disciplinary grounds. Investigation work is underway for the remaining 174 cases. A table summarizing the progress of the disciplinary and complaint-resolution work in respect of Lehman-Brothers-related complaints is available at http://ResearchArchives.com/t/s?6b43 About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition listed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LUCKY TECH: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on June 15, 2010, to wind up the operations of Lucky Tech International Limited. The company's liquidators are: Lui Tin Nang Chung Cheuk Ming Rooms 1214-1215, 12/F, Tower A New Mandarin Plaza, 14 Science Museum Road Tsimshatsui East, Kowloon, Hong Kong LUNG HING: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on August 31, 2010, to wind up the operations of Lung Hing Transportation Limited. The company's liquidator is: John Lees Associates 20/F Henley Building 5 Queen's Road Central, Hong Kong MILLENNIUM BANK: Court to Hear Wind-Up Petition on October 13 ------------------------------------------------------------- A petition to wind up the operations of Millennium Bank Inc. will be heard before the High Court of Hong Kong on October 13, 2010, at 9:30 a.m. The Petitioner's solicitors are: Tanner De Witt 1806, Tower Two, Lippo Centre 89 Queensway Central Hong Kong SEALINK SHIPPING: Court to Hear Wind-Up Petition on September 29 ---------------------------------------------------------------- A petition to wind up the operations of Sealink Shipping Company Limited will be heard before the High Court of Hong Kong on September 29, 2010, at 9:30 a.m. The high court of The Hong Kong Special Administrative Region, Court of First Instance filed the petition against the company on June 3, 2010. The Petitioner's solicitors are: Richard Butler In Association with Reed Smith LLp 20th Floor, Alexandra House 60-20 Chater Road Central, Hong Kong SHISEI (PNG): Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on August 12, 2010, to wind up the operations of Shisei (PNG) Enterprises Company Limited. The company's liquidators are: Lui Tin Nang Chung Cheuk Ming Rooms 1214-1215, 12/F, Tower A New Mandarin Plaza, 14 Science Museum Road Tsimshatsui East, Kowloon, Hong Kong UNIVERSAL SHEEN: Creditors' Proofs of Debt Due October 6 -------------------------------------------------------- Creditors of Universal Sheen Group Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by October 6, 2010, to be included in the company's dividend distribution. The company's liquidator is: Lau Siu Hung Room 1909-10 Nan Fung Tower 173 Des Voeux Road Central, Hong Kong ZACC LIMITED: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on May 28, 2010, to wind up the operations of Zacc Limited. The company's liquidators are: Lui Tin Nang Chung Cheuk Ming Rooms 1214-1215, 12/F, Tower A New Mandarin Plaza, 14 Science Museum Road ========= I N D I A ========= AMIT METALIKS: CARE Assigns 'CARE C' Rating to LT Bank Facilities ----------------------------------------------------------------- CARE assigns 'CARE C' and 'PR4' ratings to bank facilities of Amit Metaliks Ltd. Amount Facilities (INR crore) Facilities ---------- ----------- ---------- Long-term Bank Facilities 58.25 'CARE C' Assigned Short-term Bank Facilities 1.20 'PR4' Assigned Rating Rationale The ratings are constrained by the short track record of the company in manufacturing operation, volatility in the prices of raw material and finished goods, uncertainties associated with the recent major accident in the plant, instances of delay in servicing of term loans in the last six months, presence in lower end of the product value chain resulting in lower profitability, high overall gearing and low debt coverage indicators, risk associated with the ongoing & proposed projects vis-a-vis delay in implementation of the ongoing project and cyclicality of the steel industry alongwith high degree of competition. The ratings also factor in the experience of promoters, strategic location of the plant and backward integration for key raw material through an associate company. Timely servicing of debt, ability of the company to improve its profitability & leverage ratios and successful completion of the ongoing and proposed projects are the key rating sensitivities. About Amit Metaliks Amit Metaliks Limited was incorporated in Sept. 2004 and taken over by Shri Amit Kumar Singh and his two brothers, the current promoters, in Sep. 2007. Thereafter, the company set up a billet manufacturing plant with an installed capacity of 57,600 MT per annum (mtpa) at Durgapur, West Bengal. The plant commenced commercial production in June 2008. On a total income of INR62.2 crore, AML earned a PAT of INR0.6 crore in FY09. The provisional FY10 result witnessed an increase in net sales, PBILDT & PAT level and GCA. While the leverage ratios remained on the higher side, the liquidity ratios were moderate. AMORPHOS CHEMICALS: Fitch Assigns 'B+' National Long-Term Rating ---------------------------------------------------------------- Fitch Ratings has assigned India's Amorphos Chemicals Private Limited a National Long-term rating of 'B+(ind)'. The Outlook is Stable. The agency has also assigned ratings to ACPL's bank loans: -- INR63.1 million fund-based working capital limits: 'B+(ind)'/'F4(ind)'; and -- INR18 million non-fund based working capital limits: 'B+(ind)'/'F4(ind)'. ACPL's ratings are based on its track record of growth -- the company's sales have grown at the rate of 102% over the last five years -- and the consistent improvement in its EBITDA margins (FY10: 3.6%, FY06: 2.2%). Other positive factors include extensive experience of the management in chemical trading since 1993 and the stable relationship the company shares with its customers. The company has gradually increased its geographical footprint in India and diluted its customer concentration risk to moderate levels. The ratings are constrained by ACPL's small scale of operations and low margins due to the trading nature of its business. The ratings are also constrained by the company's high financial leverage (FY10: 5.5x) due to its working capital requirements and low EBITDA levels. The company had utilized its unsecured loans at a higher cost to finance its working capital requirements in the past, which resulted in a reduction in its gross fixed charges coverage ratio to 1.41x in FY10 from 1.56X in FY07. The ratings are further limited by the forex risk on imports which constitutes around 25% of the company's total purchases, as it does not have any hedging mechanism in place. Negative rating triggers include a decline in ACPL's EBITDA margin and an increase in its financial cost, which would lead to a deterioration of its coverage metrics and increase in its financial leverage due to inefficient working capital management. Positive rating triggers include an increase in ACPL's volumes and revenues, improvement in its profit margins and coverage metrics along with a decline in its financial leverage. ACPL is a trading firm engaged in the marketing of chemicals which are used as raw materials in the manufacturing of specialty construction chemicals. In FY10, it reported revenues of INR381m, an EBITDA of INR13.6m and a profit after tax of INR2.3m. M&M CHOCOLATES: CARE Rates INR13.6cr LT Bank Loans at 'CARE BB+' ---------------------------------------------------------------- CARE assigns 'CARE BB+' rating to bank facilities of M&M Chocolates. Amount Facilities (INR crore) Facilities ---------- ----------- ---------- Long-term Bank Facilities 13.60 'CARE BB+' Assigned Rating Rationale The rating is constrained by the small size of operations, high gearing ratio, fluctuating raw material prices, lack of operational track record and absence of firm agreement for sale. The rating is underpinned by the experience of the partners in the business, recently completed capacity expansion, backward integration through associate concern, plant location which reaps tax benefits and stable industry prospects. Ability of M&M to penetrate the market without impact on its profitability, pass on the impact of change in raw material prices and stabilization of operations are the key rating sensitivities. M&M was originally started as a proprietary concern in 2009 by Mr. D. Durga Prasad(Present Managing Partner) and was converted into a partnership firm with Mr. D.Durga Prasad and Mrs. D. Krishna Kumari (wife of Mr.D.Durga Prasad) as its partners in November 2009. The firm is presently engaged in manufacturing of bulk chocolates and confectionary. The firm undertook capacity expansion in FY09. M&M has set up a 6,000 tonnes per annum (TPA) chocolate/confectionery manufacturing plant in Baddi, HP. The said location also entails the firm to tax benefits provided by the state of HP. The commercial production from enhanced capacity commenced in February 20, 2010 and FY11 will be the first full year of operations. In FY10, only a small unit with an annual capacity of 900 Tones was operational for nine months. On a total income of INR1.46 cr, the firm reported a net loss of INR0.35 cr in FY10 (Prov.). NAGPUR ESTATES: CRISIL Rates INR55MM Term Loan at 'BB' ------------------------------------------------------ CRISIL has assigned its 'BB/Stable' rating to the rupee term loan facility of Nagpur Estates Pvt Ltd, which is part of the Mother's Pet group. Facilities Ratings ---------- ------- INR 55.0 Million Rupee Term Loan BB/Stable (Assigned) The rating reflects NEPL's relatively small scale of operations and risks associated with the company's ongoing capacity expansion project. These rating weaknesses are partially offset by the healthy financial risk profile, marked by low gearing and strong debt protection metrics, and stable revenue visibility, backed by monthly lease rentals from group entities. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of NEPL and Mother's Pet Kindergarten (MPKG), together referred to as the Mother's Pet group. This is because the entities are under a common management and have fungible cash flows. Moreover, NEPL, which is the in-house construction company of the Mother's Pet group, constructs and modifies buildings used by MPKG and Centre Point Schools (CPS). Outlook: Stable CRISIL believes that NEPL will continue to benefit from stable inflow of lease rental income from group entities that own and operate MPKG and CPS in Nagpur (Maharashtra). The outlook may be revised to 'Positive' if there is a substantial increase in lease rentals paid by MPKG and Mother's Pet Education Society (MPES), thereby improving NEPL's revenues and profitability. Conversely, the outlook may be revised to 'Negative' if NEPL's capacity expansion project faces time or cost overruns, adversely affecting its cash flows, or there are delays in payment of monthly lease rentals by group entities, adversely impacting NEPL's ability to service debt. About Nagpur Estates NEPL is a private limited company promoted by Upadhyay family of Nagpur. NEPL is the in-house construction company that undertakes construction of school buildings for MPKG and CPS. NEPL currently owns three buildings that it has leased to MPKG and MPES and earns lease rentals on these buildings. NEPL does not undertake any construction work outside of MPKG and CPS. MPKG is a proprietorship concern founded by Mrs. Aruna Upadhyay in 1979. MPKG offers pre-school education to children between two and five years of age, in four classes - pre-nursery, nursery, lower kindergarten (KG-I) and upper kindergarten (KG-II). NEPL reported a provisional profit after tax (PAT) of INR17 million on provisional net sales of INR36 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR17 million on net sales of INR24 million for 2008-09. PROCTOR MARKETING: CARE Puts 'CARE BB+' Rating on INR10cr LT Loans ------------------------------------------------------------------ CARE assigns 'CARE BB+' and 'PR4+' ratings to bank facilities of Proctor Marketing Pvt Ltd. Amount Facilities (INR crore) Facilities ---------- ----------- ---------- Long-term Bank Facilities 10.00 'CARE BB+' Assigned Short-term Bank Facilities 10.00 'PR4+' Assigned Rating Rationale: The ratings are constrained by PMPL's relatively small size of operations, low profitability margins, moderate operating cash flows, relatively high gearing ratios, concentration of sales in and around Mumbai and high dependence on Essar Steel Ltd for sourcing steel. The ratings factor in experience of the promoters of PMPL in steel trading and distribution business, protection available on the inventory held from ESL against price volatility and financial support from group companies through unsecured loans. PMPL's ability to achieve the envisaged sales and profitability are the key rating sensitivities. About Proctor Marketing Established in 1994, as non banking finance corporation (NBFC), PMPL commenced its steel trading activities in the year 2006. PMPL is engaged in trading of steel and iron products like hot rolled coils/plates sheets. PMPL sources these products from various manufacturers including Essar Steel Limited. The company was appointed as the consignment agent of ESL for Maharashtra region in July 2007. However, since ESL changed the marketing and distribution strategy and opened steel retailing stores (Hypermarts) at major steel-consuming centres to help consumers meet their requirements, the consignment agency ended in September 2008. During FY10 PMPL got the Expressmart dealership of ESL in Mumbai and presently operates one store under the same. PMPL registered profit after tax of INR0.06 crore on total operating income of INR208.10 crore in FY09. RAJLAXMI CONSTRUCTIONS: CRISIL Reaffirms 'C' Rating on Cash Credit ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Rajlaxmi Constructions Ltd continue to reflect delay in equipment loan servicing due to weak liquidity; these loans have not been rated by CRISIL. Facilities Ratings ---------- ------- INR110.0 Million Cash Credit C (Reaffirmed) INR30.0 Million Corporate Loan C (Reaffirmed) INR16.5 Million Standby Line of C (Reaffirmed) Credit INR220.0 Million Bank Guarantee P4 (Reaffirmed) The ratings also reflect Rajlaxmi's small scale of operations, geographic and customer concentration in its revenue profile, and its working-capital-intensive operations. These rating weaknesses are partially offset by Rajlaxmi's well-established market position in the construction business, sizeable order book, low gearing, and strong debt protection metrics. Update Rajlaxmi's revenues of INR1.07 billion in 2009-10 (refers to financial year, April 1 to March 31), were in line with CRISIL's expectations. Its operating profitability was also in line with CRISIL's expectations, at 10.9 per cent in 2009-10 and 2008-09. Rajlaxmi has orders aggregating INR2.70 billion to be delivered in the next 18 months. The company's operations are highly working capital intensive, driven by moderately large receivables from its government-sector clients, large quantum of retention money, and deposits made for contracts and advance payments to suppliers, in line with earlier expectations. The large working capital requirement is evident from the fact that the company's bank limits, despite increasing by INR70.00 million in December 2009, were almost fully utilised throughout 2009-10. This reflects Rajlaxmi's weak liquidity, which resulted in delayed servicing of equipment loans. About Rajlaxmi Constructions Established in 1982 by Mr. S N Sahoo, Rajlaxmi undertakes road, bridge, irrigation, and other civil and infrastructure construction projects. The company's operations are limited to Orissa. Rajlaxmi reported a profit after tax (PAT) of INR45.80 million on net sales of INR1.07 billion for 2009-10, against a PAT of INR46.50 million on net sales of INR917.00 million for 2008-09. S L OBERAI: CRISIL Reaffirms 'B' Rating on INR18MM Long-Term Loan ----------------------------------------------------------------- CRISIL's rating on the bank facilities of S L Oberai Minerals Pvt Ltd continues to reflect SL Oberai's weak financial risk profile, marked by small net worth, high total outside liabilities to tangible net worth (TOL/TNW) ratio, and weak debt protection metrics. The ratings also reflect the company's limited bargaining power with its principals, Tata Motors Ltd and Fiat India Automobiles Ltd. These rating weaknesses are partially offset by SL Oberai's established market position in the automobile dealership segment. Facilities Ratings ---------- ------- INR18.0 Million Long-Term Loan B/Stable (Reaffirmed) INR77.0 Million Cash Credit B/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SL Oberai's financial risk profile will remain weak over the medium term because of increase in working capital requirements and decline in margins. The outlook may be revised to 'Positive' if SL Oberai's financial risk profile improves significantly, driven most likely by equity infusion or sustained improvement in operating margin. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile deteriorates further, most likely because of large, debt- funded capital expenditure (capex), or decline in margins as a result of decrease in revenues. Summary Update SL Oberai's revenues increased by 1.5 per cent over previous year's level and operating margins remained stable at 3.9 per cent in 2009-10 (refers to financial year, April 1 to March 31). As a result, its net profit remained low at INR1.2 million, limiting growth in its net worth, which remained low at around INR22 million as on March 31, 2010 resulting in a high TOL/TNW of 6.8 times. CRISIL expects SL Oberai's revenues to increase by 5 to 8 per cent over medium term because of revival in demand for passenger vehicles and SL Oberai bagging dealership of FIAL in 2009-10. Although SL Oberai does not have any major capex plan for the medium term, its TOL/TNW ratio is expected to remain high over the medium term because of its small net worth and debt-funding of incremental working capital requirement. About SL Oberai SL Oberai was incorporated in 1991 by Mr. Rakesh Oberai. The company is the dealer for passenger cars of TML and FIAL; it is the sole dealer for TML's and FIAL's passenger cars in Dehradun and the Garhwal region. Oberai has five booking offices, one each in Dehradun, Kotdwara, Maletha, Tehri, and Gopeshwar; its main showroom in Dehradun has floor area of 8000 square feet. SL Oberai reported, on provisional basis, a profit after tax (PAT) of INR1.2 million on net sales of INR575.9 million for 2009-10; it reported a PAT of INR1.3 million on net sales of INR567.4 million for 2008-09. SAN MEDIA: CRISIL Cuts Rating on INR45 Million Term Loan to 'B+' ---------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of San Media Ltd to 'B+/Negative/P4' from BB/Negative/P4+. Facilities Ratings ---------- ------- INR20 Million Cash credit B+/Negative (Downgraded from BB/Negative) INR45 Million Term Loan B+/Negative (Downgraded from BB/Negative) INR45 Million Bank Guarantee P4 (Downgraded from P4+) The downgrade reflects the stretched liquidity situation of the company and delays in the execution of its e governance project. The ratings continue to reflect SML's exposure to risks relating to the e-governance services business, such as low revenue visibility and low margins, and the expected deterioration in its financial risk profile due to aggressive debt funding of proposed future projects. These weaknesses are partly mitigated by the company's stable revenue stream from television content and IT solutions businesses. Outlook: Negative CRISIL expects that SML's liquidity will remain under pressure over the medium term due to delays in the execution of its e governance project and the upcoming debt repayments.The rating may be downgraded if SML's revenues or operating margins decline more than expected resulting in lower accruals and further stretching its liquidity, or it takes on further debt funding, thus affecting its capital structure. Conversely, significant improvement in liquidity, backed by healthy growth in revenues and profitability, and sustenance of capital structure may drive a revision in outlook to 'Stable'. About San Media Set up in 1996, SML is a closely held public limited company engaged in the production of television content, providing software solutions and offering e-governance services for government projects in education, utility and Public distribution system. Its office in Chennai is equipped with a studio for post- production activities. The company plans to enter the Solar power generation business. It has applied for production license of 5MW through Photo Voltaic technology under the Jawaharlal Nehru National Solar Mission scheme offered by Government of India. SML posted a provisional profit after tax (PAT) of INR 4.6 million on net sales of INR 104.8 million for 2009-10 (refers to financial year, April 1 to March 31), against a reported PAT of INR 5 million on net sales of INR 60 million for 2008-09. SANJAY STEELS: CRISIL Rates INR120 Million Cash Credit at 'B+' -------------------------------------------------------------- CRISIL has assigned its 'B+/Stable' rating to Sanjay Steels' cash credit facility. Facilities Ratings ---------- ------- INR120.00 Million Cash Credit B+/Stable (Assigned) The rating reflects Sanjay Steels' weak financial risk profile, marked by high gearing and below-average debt protection metrics, and its low profitability margins, which remain susceptible to volatility in steel prices. These rating weaknesses are partially offset by the experience of Sanjay Steels' promoter in the steel trading business. Outlook: Stable CRISIL believes that Sanjay Steels will continue to benefit from its promoter's experience in the steel trading business, over the medium term. The outlook may be revised to 'Positive' if Sanjay Steels' capital structure improves, and its revenues and profitability increase significantly, thereby improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' if Sanjay Steels' profitability declines, most likely because of continued volatility in steel prices and sharp decline in sales, or if the promoter withdraws a substantial quantum of capital from the firm. About Sanjay Steels Set up in July 2007, Sanjay Steels is a sole-proprietorship concern promoted by Mr. Sanjay Gupta. Mr. Gupta has about 15 years of experience in trading of cold-rolled (CR) sheets in Hyderabad (Andhra Pradesh). Sanjay Steels trades in CR sheets, angles, channels, and flats. Sanjay Steels reported a profit after tax (PAT) of INR7 million on net sales of INR1.5 billion for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR2 million on net sales of INR0.9 billion for 2008-09. SUDHIR FORGINGS: CRISIL Puts 'BB' Rating on INR19.3MM Cash Credit ----------------------------------------------------------------- CRISIL has assigned its 'BB/Stable' rating to Sudhir Forgings Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR19.30 Million Cash Credit BB/Stable (Assigned) INR20.10 Million Export Packing BB/Stable (Assigned) Credit INR35.00 Million Rupee Term Loan BB/Stable (Assigned) The rating reflects Sudhir's small scale of operations, exposure to risks related to fluctuations in raw materials prices and foreign exchange rates, and to intense competition in forgings segment, limited financial flexibility because of small net worth and moderately high gearing. These rating weaknesses are partially offset by the benefits that the company derives from its promoter's extensive industry experience, its diversified customer base and adequate debt protection metrics. Outlook: Stable CRISIL believes that Sudhir's scale of operations will remain small and its financial flexibility will remain constrained by its small net worth over the medium term. The outlook may be revised to 'Positive' in case of higher-than-expected increase in the company's revenues and improvement in its financial risk profile, mainly driven by fresh equity infusion leading to increase in net worth. Conversely, the outlook may be revised to 'Negative' in case of significant pressure on the company's revenues, leading to lower-than-expected cash accruals, or if the company undertakes a larger-than-expected debt-funded capex programme, weakening its capital structure. About Sudhir Forgings Set up in 1989 and promoted by the Garg family, Sudhir manufactures forged components that find application mainly in oil and gas transportation and automobile (auto) components. The company has presence in the domestic and export markets. In the export segment, it mainly sells flanges, and exports mainly to the US, besides Germany, Argentina, and Canada. In the domestic market, Sudhir sells mainly to Tier I suppliers of auto original equipment manufacturers (OEMs). Sudhir reported a profit after tax (PAT) of INR11.6 million on net sales of INR237 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR4.9 million on net sales of INR125 million for 2007-08. TIKONA DIGITAL: CRISIL Rates INR6 Billion Term Loan at 'BB' ----------------------------------------------------------- CRISIL has assigned its 'BB/Stable' rating to Tikona Digital Networks Pvt Ltd's term loan. Facilities Ratings ---------- ------ INR6.0 Billion Term Loan BB/Stable (Assigned) The rating reflects the risks that TDN is currently facing as its operations are in the start-up phase. The ratings also reflect TDN's exposure to intense market competition and susceptibility to rapid technological changes. These rating weaknesses are partially offset by extensive industry experience of TDN's promoters, and upfront capital infusion made by promoters and private equity players to fund network rollout as well as for obtaining the licenses for establishment of its broadband wireless access (BWA) services. Outlook: Stable CRISIL believes that TDN's business risk profile will continue to benefit from increase in its subscriber base through introduction of services in new cities; TDN is also likely to break even over the medium term. The company's financial risk profile is expected to remain weak despite equity contribution, because of negative cash accruals until it achieves break even. The outlook may be revised to 'Positive' if TDN increases its subscriber base more than expected and achieves break-even earlier than expected. Conversely, the outlook may be revised to 'Negative' if the pace of increase in subscriber base is slow, resulting in a delay in achieving break-even, leading in turn to lower-than-expected profitability, or if the company contracts more-than-expected debt for funding its capital expenditure. About Tikona Digital TDN was incorporated in May 2008. The company provides broadband internet service to retail and corporate customers. TDN holds a category 'A' internet service provider (ISP) license from the Department of Telecommunications (DoT) and is currently offering services in more than 20 cities across India. It commenced commercial operations in May 2009; it currently has around 154,000 retail and 6900 small-and-medium enterprise customers. TDN plans to expand its operations to 100 cities in India in the next two years. TDN will start offering its BWA services from 2012-13 onwards in five telecommunication circles; it bid for the spectrum at a recent auction by DoT. For 2009-10 (refers to financial year, April 1 to March 31), TDN reported, on provisional basis, a net loss of INR854.0 million on net sales of INR96.8 million; it reported a net loss of INR69.1 million on net sales of INR25.7 billion for the preceding year. TUFTS INTERNATIONAL: CARE Rates INR8.2cr Short-Term Loan at 'PR4' ----------------------------------------------------------------- CARE assigns 'PR4' ratings to the bank facilities of Anu Tufts International. Amount Facilities (INR crore) Facilities ---------- ----------- ---------- Short-term Bank Facilities 8.20 'PR4' Assigned The ratings assigned by CARE are based on the capital deployed by the partners and the financial strength of ATI at present. The rating may undergo a change in case of withdrawal of capital or of the unsecured loans brought in by the partners in addition to changes in the financial performance and other relevant factors. Rating Rationale The rating is constrained by the relatively small scale of operations, declining revenue trend in FY09-10 and extremely high operating cycle. The rating also factors in the geographical and client concentration of revenues to the US and the ensuing foreign exchange risks. The rating takes into account the management's experience in the carpet business, established presence in the international market and absence of long-term debt. Going forward, the ability of ATI to profitably scale-up the operations coupled with the improvement in the operating cycle shall be the key rating sensitivities. About Tufts International ATI is a registered partnership firm founded in 1999 and is engaged in the manufacturing and export of various types of hand- tufted woollen carpets from Bhadohi (Uttar Pradesh). The firm has nine partners with varied share in profit/loss. ATI has been accorded the status of 'One Star Export House' by the Ministry of Commerce and Industry, Government of India. On a total operating income of INR19.26 cr during FY09, ATI earned PBILDT and PAT of INR2.13 cr and INR0.57 cr respectively. As per the provisional results for FY10, the firm has achieved a total operating income of around INR8.53 cr with PBILDT and PAT of INR0.96 cr and INR0.16 cr respectively. ================= I N D O N E S I A ================= GARUDA INDONESIA: Delays Planned IPO to February Next Year ---------------------------------------------------------- The Jakarta Globe reports that Garuda Indonesia has delayed its plan to go public to next year because the company is still consolidating its financial report. According to the Jakarta Globe, the government-owned carrier had planned an IPO in November. Garuda, which saw its profit fall by 80 percent in the first half of 2010, had initially hoped to generate around US$400 million by floating 30 percent of its shares, the report notes. Mahmudin Yasin, the State Enterprises Ministry's deputy for privatization and restructuring, said the process would push the debut back to February as the government weighs details of the offering and the company's finances, the Jakarta Globe relates. "An accurate and detailed financial report is needed before Garuda can go ahead with its IPO because Garuda never issued any bonds before," the report quoted Mr. Yasin as saying. The financial report, Mr. Yasin added, "might take some time because Garuda has a lot of branches and subsidiaries." The Jakarta Globe notes Elisa Lumbantoruan, Garuda?s acting finance director, confirmed that the IPO was going to be carried out in early February. The Troubled Company Reporter-Asia Pacific reported on Aug. 11, 2010, that Garuda Indonesia had completed the restructuring of US$76 million of debts to state oil and gas company PT Pertamina, in the airline's latest move to help ease its debt burden. Garuda has also completed a debt restructuring negotiation with its biggest creditor, the state lender Bank Mandiri. Garuda received IDR1 trillion from the government in 2006 to help it keep flying and has been negotiating with bondholders since 2007 over notes that weren't redeemed, according to Bloomberg News. About Garuda Indonesia Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently has a fleet of about 77 aircraft offering service to some 27 domestic and 33 international destinations. Under its Citilink brand, it serves 10 other domestic routes. Garuda also ships about 200,000 tons of cargo a month and operates a computerized tracking system. ========= J A P A N ========= AMERICAN INT'L: Has Deal to Sell 2 Japanese Units to Prudential --------------------------------------------------------------- The Wall Street Journal's Leslie Scism and Anupreeta Das report that Prudential Financial Inc. is nearing a deal to buy two Japanese life-insurance companies -- AIG Star Life Insurance Co. and AIG Edison Life Insurance Co. -- from American International Group Inc., for a combined $4 billion to $5 billion, according to people familiar with the matter. The Journal says Newark, N.J.-based Prudential -- not related to the U.K.'s Prudential PLC -- has significant operations in Japan, and it has publicly stated its interest in expanding there. A pact is believed to be a few days away from completion, the people told the Journal. They added that discussions are fluid and last-minute snags could derail any deal. 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. ==================== N E W Z E A L A N D ==================== AORANGI SECURITIES: HC Partners Directors Caught Up in Hubbard Web ------------------------------------------------------------------ The statutory managers of Aorangi Securities Ltd. and 11 entities associated with Allan Hubbard said their appointment to a company owned and managed by Timaru accountants HC Partners is not a reflection on the firm's trustee management, Tamsyn Parker writes for the New Zealand Herald. The NZ Herald says Hubbard Churcher Trust Management and Forresters Nominees Company were added to the list of businesses under management by Trevor Thorton, Richard Simpson and Graeme McGlinn on Monday. Hubbard Churcher Trust Management is owned and managed by the partners of HC Partners and used to be known as Hubbard Churcher, the report discloses. According to the report, Allan Hubbard resigned as a director of the accountancy firm on June 29 -- nine days after the statutory managers were appointed to manage his and wife Jean's assets as well as Aorangi Securities and seven trusts. The report relates Mr. McGlinn said the directors of HC Partners had been "caught up" in the complex ownership arrangement that was part of Hubbard Management Funds. Both Hubbard Churcher Trust Management and Forresters Nominee Company hold assets associated with Hubbard Management Funds, the report adds. "I would like to make it clear that the statutory management is in no way a reflection on the directors' management of their clients' trusts," the report quoted Mr. McGlinn as saying. "It merely provides us with the control we need in protecting and managing the investments in Allan Hubbard's Hubbard Management Funds business," he added. A spokesman for the statutory managers said they would release their third report on the Hubbard entities next week, the NZ Herald relates. 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. 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. The Temple Bar Family Trust and Barns Charitable Trust were also put into statutory management earlier this month on recommendation from the Securities Commission. Aorangi Securities Ltd was incorporated in 1974 and is solely controlled by the Hubbards. LIGHTER QUAY: Owners Want to Cancel Leases of 19 More Rooms ----------------------------------------------------------- The Westin Hotel unit owners are seeking to cancel the leases of a further 19 rooms at the five-star hotel in the next two weeks, Susie Nordqvist at The New Zealand Herald reports. The NZ Herald says receiver KordaMentha has confirmed it will not be contesting the application. According to the report, the owners' representative Graeme Wilkinson said the leases of another 19 units at the hotel are due to be terminated in the next two weeks, raising the possibility that more jobs at the hotel could go. The NZ Herald relates KordaMentha said it did not "at this stage" anticipate further redundancies as a result of the latest court application. Mr. Wilkinson said the owners were also due in court next month where they would be contesting the validity of certain body corporate rules affecting the owners, according to the report. The NZ Herald quoted Mr. Wilkinson as saying: "Currently the body corporate has rules which give unequal voting power to the receiver and as a result the owners are unable to access their rooms. The receiver has told us he's cutting the power off, cutting the phone off and cutting the television off." "We will be contesting the validity of those rules and asking that the court see certain body corporate rules as ultra vires, or unenforceable," he said, the report notes. The report relates Michael Stiassny of KordaMentha said nobody had been denied access to their property. About Lighter Quay Lighter Quay Hotel Management manages Auckland's five-star, NZ$130 million, 172-room Westin Hotel. As reported in the Troubled Company Reporter-Asia Pacific on July 2, 2010, Michael Stiassny and Brendon Gibson of KordaMentha have been appointed as receivers to Lighter Quay Hotel Management by major creditor Bank of Scotland International, which has security from a loan agreement made in September 2007. Lighter Quay Hotel Management is owned by property developer Nigel McKenna, whose company Melview Developments built the hotel and surrounding Lighter Quay development at Auckland's Viaduct Harbour. The company also owes money to more than 100 investors, many of them Asian, who bought rooms in the hotel and leased them to the management company. PROPERTY FOOD: Receivers Move on NZ$1 Million Waimarama Mansion --------------------------------------------------------------- Property Food and Technology's NZ$1.25 million beachfront property at Waimarama is up for auction by receivers appointed by South Canterbury Finance, Hawke's Bay Today reports. The property is a two-storey, three-bedroom house. The report relates that Property Food and Technology went into receivership on August 3. The company's sole director and shareholder is Feilding businessman Kenneth Thurston. According to the report, three of Mr. Thurston's companies were placed in receivership in relation to a NZ$14 million loan owed to South Canterbury Finance. The report notes that a fourth company owned and directed by Mr. Thurston, Advanced Logistics, is also in the hands of receivers, appointed by Farmers Mutual Finance. Nick Thompson from PKF Goldsmith Fox, receiver for Property Food and Technology, said the South Canterbury loan was spread across several of Mr. Thurston's companies under a cross-guarantee, the report discloses. Property Food and Technology appeared to be used as a property holding company, the report says. "Unfortunately it's linked to other companies which are in receivership and because of a number of cross-guarantees, this company has been dragged into the receivership," the report quoted Mr. Thompson as saying. The report says that two other properties owned by the company were also likely to be sold. Property Food and Technology is a property holding company based in New Zealand. SOUTH CANTERBURY: Trustee Repays NZ$350 Million to Bondholders -------------------------------------------------------------- Marta Steeman at BusinessDay.co.nz reports that investors holding NZ$350 million of bonds in South Canterbury Finance were repaid on Thursday. An announcement on the repayment of SCF debenture holders and depositors is likely next week, the report says. According to the report, Trustee Executors, acting on behalf of the investors, said the bond holders investments were guaranteed under the Retail Deposit Guarantee Scheme. The guarantee was triggered after SCF asked the trustee to appoint receivers on August 31. BusinessDay.co.nz discloses that bond holders represent about NZ$350 million of the NZ$1.6 billion owed to SCF secured investors in debt securities. The trustee, as cited by BusinessDay.co.nz, said the repayment to bondholders was full and final payment. About South Canterbury Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA) -- http://www.scf.co.nz/-- is engaged in the provision of financial services. The Company's principal activities are borrowing funds from public and institutional investors and on- lending those funds to the business, plant and equipment, property, rural and consumer sectors. It typically advances funds by means of hire purchase, floor plans, leasing of plant, vehicles and equipment, personal loans, business term loans and revolving credit facilities, mortgages against property, and other financial instruments, including consumer loan insurance. Southbury Group Limited holds a controlling interest in the Company. Its subsidiaries include Ashburtin Finance Ltd, Auckland Finance Ltd, Canterbury Finance Ltd, Coversure Guarantee Ltd, Face Finance Ltd, Helicopter Nominees Ltd, Hotnchurch Ltd, Otage Finance Ltd, Palmerston North Finance Ltd, Rental cars Ltd, ZSCFG Systems Ltd, Walkato Finance Ltd and Wellington Finance Ltd. On August 31, 2010, Trustees Executors Limited, as trustee for South Canterbury Finance charging group, appointed Kerryn Downey and William Black of McGrathNicol as receivers of the charging group's secured assets. "As Trustee, we have had South Canterbury Finance under heightened surveillance since 2008. As part of that, SCF was granted a Trustee waiver in February 2010 to allow it time to recapitalise. Unfortunately, the Company's Directors have advised us that they have not been successful with respect to a recapitalization and requested us to appoint a receiver. At this point we, as Trustee, agree that it is the best interests of debenture, deposit and bond holders to do that," said Yogesh Mody, Southern Regional Manager for Trustees Executors Limited. The New Zealand government said it would repay South Canterbury's 35,000 depositors and stockholders NZ$1.6 billion under the crown retail deposit guarantee scheme. * NEW ZEALAND: Number of Firms Going Insolvent Rises ---------------------------------------------------- Increasing numbers of New Zealand companies are likely to become insolvent as the economy moves slowly out of recession, The New Zealand Herald reports citing Mike Whale, a consultant with law firm Lowndes Associates, who chaired an Auckland insolvency conference this week. The NZ Herald relates Mr. Whale said the number of non-finance- sector collapses had so far failed to reach the levels expected when the recession began. But he said a slow recovery was likely to see insolvencies increasing as businesses lacking cashflow and credit became unable to keep up with the pace of growth in the economy. Mr. Whale's comments were echoed in a recent Massey University study that indicated this year was likely to be the toughest since the downturn began for many small-to-medium companies, the NZ Herald says. The NZ Herald reports that Peter Sherwin, a partner and chairman of Grant Thornton's Wellington office, said the high number of receiverships and insolvencies he had expected at the recession's outset had failed to materialize. This was partly a result of banks taking a less aggressive, more collaborative approach to companies facing difficulties, he said. Like Mr. Whale, however, Mr. Sherwin said the number of insolvencies was likely to increase in the near future, the NZ Herald adds. Insolvency occurs when a business no longer has the ability to pay its debts and can result in proceedings such as receivership and liquidation. ================ S R I L A N K A ================ * Moody's Assigns 'B1' Issuer Rating on Sri Lanka Government ------------------------------------------------------------ Moody's Investors Service has assigned a B1 foreign currency issuer rating to the government of Sri Lanka. The outlook is stable. Ratings Rationale The end of Sri Lanka's civil conflict and a structural improvement in its economic prospects were important considerations for the ratings decision. The stable outlook balances ongoing policy efforts to improve fiscal and balance of payments fundamentals and maintain low inflation, against a large, albeit improving, government debt overhang. Sri Lanka's ratings are based on four key methodological factors: 1. Low economic strength: derived from a small, relatively open and lower-middle income economy, which has grown appreciably despite the long civil war and several external shocks. A sustained track record of rapid economic growth with reasonable external balance and restrained inflation which, coupled with further diversification of the economic base, could support an improved assessment of the country's economic strength. 2. Medium institutional strength: supported chiefly by reasonably strong monetary management through the long civil war, strategic policy reforms and initiatives undertaken during the conflict, and a strong relationship with official creditors and key bilateral partners. This sets the stage for a sustained rebound in the economy. Moody's assessment also incorporates the World Bank's moderate rankings for Sri Lanka for rule of law and government effectiveness. The development of contractual savings institutions and fairly broad domestic financial markets have helped to accommodate the sovereign's large fiscal financing needs. 3. Low government financial strength: reflects the government's large debt and debt service burden, and lingering external vulnerabilities, which Moody's recognizes as being largely due to wartime circumstances. However, these risks are being offset by growing foreign investor interest and improvement in domestic competitiveness, which should support the balance of payments position. There are also proposed fiscal reforms which are expected to lower future budget deficits. Moreover, the country's improving growth prospects and a downshift in local interest rates will also support the government's debt dynamics. 4. Medium susceptibility to event risk: reflects the resilience of Sri Lanka's constitutional democracy, which has withstood a prolonged civil conflict that has left its core policy institutions and resident confidence un-damaged. However, financial and contingent liability risks, relative to the sovereign's strained balance sheet and lingering external financing risks, are still considered as constraints, although these may ease over time. Rating outlook: "The stable outlook on the B1 foreign currency sovereign rating encapsulates Moody's expectation that the re-integration of the northern and eastern regions into Sri Lanka's economy will sustain a higher growth rate with single-digit inflation without destabilizing the external current account position. The outlook also reflects considerable scope for fiscal reforms and high likelihood of foreign investment inflows against lingering risks posed by a large government debt overhang and remaining, though, diminishing, external financing risks," says Mr. Aninda Mitra, a Moody's Vice President and lead sovereign analyst for Sri Lanka. "The stable outlook also considers Sri Lanka's small size, partial dollarization, and relatively modest gross domestic savings. Moody's therefore place more forward-looking credit emphasis on an improvement in fiscal management, which is an area where reforms are planned, but a track record is awaited," adds Mitra. What Could Change the Rating -- Up: An improvement in the government's fiscal and debt positions; lower and less volatile inflation; and, sustainable improvements in foreign currency reserve adequacy, supported in particular by larger foreign direct investment inflows. What Could Change the Rating -- Down: Failure to progress on fiscal consolidation, or a loss of inflation control, and a substantial worsening of the country's external balance and foreign currency liquidity position. A reversal of recently achieved political stability, which could adversely impact resident and foreign investor confidence. Regulatory Disclosures Information sources used to prepare the credit rating are these: parties involved in the ratings, public information. Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of assigning a credit rating. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process. =========== T A I W A N =========== AMERICAN INT'L: Aborts Deal With Consortium Over Nan Shan Sale -------------------------------------------------------------- Early this month, a regulator in Taiwan rejected a $2.15 billion sale of American International Group's Taiwanese life-insurance business to a group of Hong Kong investors, forcing AIG to reassess its options for the unit. The Wall Street Journal's Leslie Scism and Anupreeta Das report that this week, the investors and AIG said they agreed to abort the consortium's attempt to purchase the unit. As reported by the Troubled Company Reporter on September 2, 2010, Ting-I Tsai and Aries Poon, writing for The Wall Street Journal, said Taiwan's Financial Supervisory Commission decided to reject the deal because it had doubts about China Strategic Holdings Ltd.'s financial strength and commitment to AIG's Nan Shan Life Insurance Co., which controls more than a 30% share of Taiwan's life-insurance market. The Journal had reported that the consortium set up by China Strategic and Primus Financial Holdings Ltd. can file an appeal within 30 days. The report also said Taiwan's insurance regulator said it hoped AIG could continue to operate the insurance unit in Taiwan. But if not, the regulator hoped AIG could find a buyer that "fits everybody's interests," said Thomas Huang, director of the FSC's Insurance Bureau. The TCR, citing Dow Jones Newswires, reported August 26, 2010, that AIG said it is committed to selling its stake in Nan Shan to the China Strategic consortium, and it won't entertain any other offers. According to Dow Jones, AIG explicitly said for the first time that it "has no intention of selling its stake to any other party, and for example, will not entertain an offer from Chinatrust." Dow Jones said China Strategic has denied links to China, and AIG has said it received "legally binding representations" from the consortium that no Chinese money is being used to fund the deal. The consortium and AIG recently extended the deal's deadline to Oct. 12. 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. ============= V I E T N A M ============= MILITARY COMMERCIAL: Moody's Assigns First Time Low-B Ratings ------------------------------------------------------------- Moody's Investors Service has for the first time assigned ratings to Military Commercial Joint Stock Bank: ? B1/Not-Prime long and short-term foreign currency deposits ? Ba3/Not-Prime long and short-term local currency deposits ? Ba3/Not-Prime long and short-term foreign currency Issuer Ratings ? Ba3/Not-Prime long and short-term local currency Issuer Ratings ? Bank Financial Strength Rating of D- The outlook for all the ratings is stable, except for the foreign currency deposit rating, which carries a negative outlook in line with the negative outlook on Vietnam's foreign currency debt and deposit ceilings. Ratings Rationale "The BFSR of D-, which translates into a Baseline Credit Assessment of Ba3, reflects the bank's modest franchise in Vietnam, in a highly competitive environment. The bank has fairly healthy financial metrics, comparable to higher-rated regional peers, with consistently good profitability in recent years," says Karolyn Seet, a Moody's AVP. "The rating is also supported by the bank's comfortable liquidity, its solid capitalization ratios and its good reported asset quality." "Constraining factors include the bank's limited franchise, its narrow product diversification, and the inherent challenges of the Vietnamese operating environment," adds Seet. "In addition, the company's corporate governance, risk management, and control systems are still evolving." In Moody's view, other constraining factors are rapid credit growth, the lack of international diversification, and modest loan loss-reserve coverage. A significant proportion of the bank's off-balance sheet commitments -- almost the size of its loan portfolio and consisting largely of letters of credit -- is also a concern. Should these off-balance sheet items need to be funded, the bank's capital and liquidity ratios would be negatively affected if appropriate actions are not taken to cushion any shortfalls. The bank may not be able to sustain its good financial metrics over the medium term, due primarily to concerns about the operating environment. The Vietnamese economy has registered high growth rates, but remains fragile and vulnerable to volatility. Based on audited reports at the end of 2009, MB is the eighth- largest bank in Vietnam. Its main business -- which comprises some 48% of its loan portfolio -- involves lending to small and medium-sized enterprises. It controls 3.1% of system deposits and 2.3% of system loans, and its lending is weighted towards the commercial and SME segments. MB plans to raise capital in the near term to provide a larger cushion to absorb losses. The bank's capitalization is adequate at this point, although additional capital may be needed to support the 50%-100% loan growth expected over the medium term. In this context, in accordance with Basel I calculations, the bank's current Tier 1 ratio was 12.4% at December 31, 2009, higher than the regional D- peer median of 7.4%. MB plans to increase its chartered capital to VND7.3 trillion from VND6.2 trillion by end-2010. The capital will be replenished by the issuance of new shares. The BFSR of D- is based on Moody's view that MB's plans to raise capital plans are well under way. It is also based on Moody's expectation that the bank will maintain strong capital ratios even as it pursues its high growth strategy. However, even though its non-performing loan ratio is low, due in part to its high loan growth, its rapid credit growth (88% in 2009) raises the risk of increased asset quality problems. In Moody's opinion, this risk is compounded by (1) an ineffective legal system, which limits the recovery rates on bad loans; (2) poor credit data on smaller customers, a group that underpins MB's franchise; and (3) a modest level of loan loss reserve coverage. Because of the fiercely competitive environment in its core commercial and SME segments, the bank will find it challenging to enhance its retail franchise and fee-based income, while protecting its interest margins. In Moody's view, a ratings upgrade is unlikely in the near term, given the numerous challenges the bank is facing, among them: (1) the potential pressure stemming from problems loans because of its rapid growth plans; (2) a decline in its net interest margins, reflecting price competition in customer deposits -- the core of the bank's funding structure -- and an intensification of competition in customer lending; (3) the need to further enhance its technological infrastructure as well as its risk management and corporate governance; and (4) its exposure to the country's undiversified and challenging operating environment, characterized by high inflation and a tightening monetary policy, which makes access to funding a major concern. A downgrade in the near term is not anticipated, although a ratings downgrade could be triggered by (1) a reduction in the bank's Tier 1 ratio to less than 10%; (2) severe deterioration in asset quality, such that the ratio of NPLs to capital and loan- loss reserves rise above 40%; and (3) more aggressive lending practices in the face of harsh competition, weakening profitability, and deteriorating asset quality. In a medium-support country like Vietnam, MB's long-term global local currency deposit rating of Ba3 is based on Moody's assessment of some degree of systemic support. However, the degree in this case is not sufficient to lift the bank's GLC deposit rating. The GLC deposit rating therefore does not benefit from any uplift from the Ba3 BCA. The bank's long-term foreign and local currency issuer ratings are also positioned at Ba3. Both local- and foreign-currency short-term deposit and issuer ratings are Not- Prime. Established in 1994, MB is headquartered in Hanoi. The bank reported total assets of VND69,142 billion (approximately USD3.7 billion) at December 31, 2009. Regulatory Disclosures Information sources used to prepare the credit rating are these: parties involved in the ratings, public information, confidential and proprietary Moody's Investors Service's information. Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of assigning a credit rating. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process. =============== X X X X X X X X =============== * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ ------ ------------ AUSTRALIA ADVANCE HEAL-NEW AHGN 16.93 -8.23 ARASOR INTERNATI ARR 19.21 -26.51 AUSTAR UNITED AUN 502.05 -284.60 AUSTRAILIAN Z-PP AZCCA 77.74 -2.57 AUSTRALIAN ZIRC AZC 77.74 -2.57 AUTRON CORP LTD AAT 32.39 -13.42 BCD RESOURCES OP BCO 22.09 -61.19 BCD RESOURCES-PP BCOCC 22.09 -61.19 BIRON APPAREL LT BIC 19.71 -2.22 CENTRO PROPERTIE CNP 14,253.26 -825.84 CHALLENGER INF-A CIF 2,161.41 -339.11 CHEMEQ LTD CMQ 25.19 -24.25 ELLECT HOLDINGS EHG 18.25 -15.49 HEALTH CORP LTD HEA 13.85 -0.97 HYRO LTD HYO 11.81 -5.15 IVANHOE AUST LTD IVA 49.44 -6.51 JAMES HARDIE-CDI JHX 2,132.00 -26.70 JAMES HARDIE NV JHXCC 2,132.00 -26.70 MAC COMM INFR-CD MCGCD 8,104.42 -103.34 NATURAL FUEL LTD NFL 19.38 -121.51 ORION GOLD NL ORN 12.37 -24.99 POWERLAN LTD PWR 30.84 -5.94 SCIGEN LTD-CUFS SIE 69.94 -29.79 SHELL VILLAGES A SVC 13.47 -1.66 TAKORADI LTD TKG 13.99 -0.41 VERTICON GROUP VGP 10.08 -29.12 CHINA BAOCHENG INVESTM 600892 22.47 -3.17 CHANGAN INFO-A 600706 20.37 -7.96 CHENGDE DALU -B 200160 26.84 -6.15 CHENGDU UNION-A 693 39.91 -14.85 CHINA KEJIAN-A 35 85.26 -186.04 DATONG CEMENT-A 673 20.42 -2.75 DONGGUAN FANGD-A 600656 22.37 -60.70 DONGXIN ELECTR-A 600691 13.31 -20.95 GUANGDONG ORIE-A 600988 11.79 -7.36 GUANGMING GRP -A 587 46.84 -39.50 GUANGXIA YINCH-A 557 30.00 -31.75 HEBEI BAOSHUO -A 600155 114.87 -390.50 HEBEI JINNIU C-A 600722 231.07 -236.93 HUASU HOLDINGS-A 509 81.80 -4.82 HUNAN ANPLAS CO 156 39.16 -65.29 JIANGSU CHINES-A 805 12.46 -12.21 JINCHENG PAPER-A 820 255.17 -31.31 JINHUA GROUP-A 818 334.60 -45.66 LIAOYUAN DEHENG 600699 120.45 -31.43 MUDAN AUTOMOBI-H 8188 36.26 -0.61 NINGBO YIDONG-H 8249 43.21 -33.74 QINGHAI SUNSHI-A 600381 108.89 -24.71 SHAANXI QINLIN-A 600217 233.75 -37.00 SHANG BROAD-A 600608 69.72 -20.98 SHANG HONGSHENG 600817 15.37 -460.74 SHANGHAI WORLDBE 600757 154.83 -257.96 SHENZ CHINA BI-A 17 24.86 -272.59 SHENZ CHINA BI-B 200017 24.86 -272.59 SHENZHEN DAWNC-A 863 26.90 -151.27 SHENZHEN KONDA-A 48 116.05 -0.97 SHENZHEN SHENX-A 34 21.92 -118.85 SHENZHEN ZERO-A 7 51.44 -6.96 SHIJIAZHUANG D-A 958 216.46 -76.14 SICHUAN DIRECT-A 757 103.56 -138.84 SICHUAN GOLDEN 600678 233.64 -37.42 TAIYUAN TIANLO-A 600234 52.47 -27.08 TIANJIN MARINE 600751 78.09 -63.86 TIANJIN MARINE-B 900938 78.09 -63.86 TIBET SUMMIT I-A 600338 83.10 -1.66 TOPSUN SCIENCE-A 600771 155.93 -158.88 WINOWNER GROUP C 600681 11.13 -72.07 WUHAN BOILER-B 200770 269.09 -143.61 WUHAN GUOYAO-A 600421 11.02 -24.12 XIAMEN OVERSEA-A 600870 338.03 -139.08 XINHUA FINANCE 9399 35.80 -1.17 YANBIAN SHIXIA-A 600462 208.72 -14.53 YIBIN PAPER IN-A 600793 111.63 -0.13 YUEYANG HENGLI-A 622 36.02 -16.09 YUNNAN MALONG-A 600792 122.13 -50.67 ZHANGJIAJIE TO-A 430 45.95 -4.59 ZHONGCHANG MAR-A 600242 20.42 -1.12 HONG KONG ASIA TELEMEDIA L 376 16.62 -5.37 ASIAN CAPITAL RE 8025 21.97 -0.68 BUILDMORE INTL 108 13.08 -43.45 CHINA HEALTHCARE 673 37.98 -2.81 CMMB VISION HOLD 471 41.31 -5.11 COSMO INTL 1000 2930 83.67 -25.33 COSMO INTL 1000 120 83.67 -25.33 CROSBY CAPITAL 8088 13.84 -14.46 EGANAGOLDPFEIL 48 557.89 -132.86 FULBOND HLDGS 1041 54.53 -24.07 HAO WEN HOLDINGS 8019 22.57 -0.46 IMAGI INTERNATIO 585 11.29 -21.23 JIAN EPAYMENT 8165 14.66 -1.12 MELCOLOT LTD 8198 63.25 -34.53 MITSUMARU EAST K 2358 21.23 -9.04 NEW CITY CHINA 456 112.20 -14.59 NGAI LIK INDL 332 21.16 -3.64 PAC PLYWOOD 767 68.66 -12.31 PALADIN LTD 495 155.31 -10.91 PCCW LTD 8 5,350.25 -416.24 PROVIEW INTL HLD 334 314.87 -294.85 SINO RESOURCES G 223 25.07 -39.10 TACK HSIN HLDG 611 27.01 -62.70 TLT LOTTOTAINMEN 8022 25.21 -8.78 TONIC IND HLDGS 978 56.17 -54.52 INDONESIA ASIA PACIFIC POLY 485.05 -844.50 ERATEX DJAJA ERTX 11.30 -18.23 JAKARTA KYOEI ST JKSW 28.61 -45.23 MITRA INTERNATIO MIRA 990.92 -217.75 MITRA RAJASA-RTS MIRA-R2 990.92 -217.75 MULIA INDUSTRIND MLIA 360.87 -368.54 PANASIA FILAMENT PAFI 45.10 -8.20 PANCA WIRATAMA PWSI 30.32 -37.84 PRIMARINDO ASIA BIMA 12.22 -21.89 STEADY SAFE TBK SAFE 11.85 -5.88 SURABAYA AGUNG SAIP 265.80 -83.61 UNITEX TBK UNTX 16.09 -16.28 INDIA ALCOBEX METALS AML 16.59 -21.47 ARTSON ENGR ART 15.63 -1.61 ASHIMA LTD ASHM 63.65 -55.81 ATV PROJECTS ATV 60.46 -55.04 BALAJI DISTILLER BLD 66.32 -25.40 BELLARY STEELS BSAL 451.68 -108.50 BHAGHEERATHA ENG BGEL 22.65 -28.20 CAMBRIDGE SOLUTI CAMB 156.75 -46.79 CFL CAPITAL FIN CEATF 15.35 -46.89 COMPUTERSKILL CPS 14.90 -7.56 CORE HEALTHCARE CPAR 185.36 -241.91 DCM FINANCIAL SE DCMFS 16.06 -9.47 DIGJAM LTD DGJM 98.77 -14.62 DISH TV INDIA DITV 422.08 -127.61 DUNCANS INDUS DAI 133.65 -205.38 GANESH BENZOPLST GBP 43.99 -24.57 GEM SPINNERS LTD GEMS 15.23 -0.11 GLOBAL BOARDS GLB 14.98 -7.51 GSL INDIA LTD GSL 37.04 -42.34 GSL NOVA PETROCH GSLN 44.39 -0.93 GUJARAT SIDHEE GSCL 59.44 -0.66 HARYANA STEEL HYSA 10.83 -5.91 HENKEL INDIA LTD HNKL 102.05 -10.24 HFCL INFOTEL LTD HFCL 173.52 -101.57 HIMACHAL FUTURIS HMFC 406.63 -210.98 HINDUSTAN PHOTO HPHT 68.94 -1,147.18 HINDUSTAN SYNTEX HSYN 14.15 -3.66 HMT LTD HMT 142.67 -386.80 ICDS ICDS 13.30 -6.17 INDIA FOILS LTD IF 54.77 -2.70 INTEGRAT FINANCE IFC 45.56 -43.27 ITI LTD ITI 1,116.21 -0.80 JCT ELECTRONICS JCTE 122.54 -50.00 JD ORGOCHEM LTD JDO 10.46 -1.60 JENSON & NIC LTD JN 17.91 -84.78 JIK INDUS LTD KFS 20.63 -5.62 JK SYNTHETICS JKS 13.51 -3.03 JOG ENGINEERING VMJ 50.08 -10.08 KALYANPUR CEMENT KCEM 37.45 -45.90 KERALA AYURVEDA KRAP 13.99 -1.18 KINGFISHER AIR KAIR 1,781.30 -861.06 LLOYDS FINANCE LYDF 23.77 -10.87 LLOYDS STEEL IND LYDS 415.66 -63.93 MAHA RASHTRA APE MHAC 24.13 -14.27 MILLENNIUM BEER MLB 36.39 -3.20 MILTON PLASTICS MILT 18.31 -40.44 NICCO UCO ALLIAN NICU 32.23 -71.91 NK INDUS LTD NKI 49.04 -4.95 ORIENT PRESS LTD OP 16.70 -0.09 PANCHMAHAL STEEL PMS 51.02 -0.33 PARASRAMPUR SYN PPS 111.97 -317.11 PAREKH PLATINUM PKPL 61.08 -88.85 PEACOCK INDS LTD PCOK 11.40 -14.40 PIRAMAL LIFE SC PLSL 45.82 -32.69 POLAR INDS LTD PLI 11.61 -22.28 RAMA PHOSPHATES RMPH 34.07 -1.19 RATHI ISPAT LTD RTIS 44.56 -3.93 RELIGARE TECHNOV RTCL 44.13 -1.46 REMI METALS GUJA RMM 102.64 -5.29 RENOWNED AUTO PR RAP 14.12 -1.25 ROLLATAINERS LTD RLT 22.97 -22.24 ROYAL CUSHION RCVP 20.62 -20.95 SCOOTERS INDIA SCTR 13.29 -0.58 SHALIMAR WIRES SWRI 24.49 -49.90 SHAMKEN COTSYN SHC 23.13 -6.17 SHAMKEN MULTIFAB SHM 60.55 -13.26 SHAMKEN SPINNERS SSP 42.18 -16.76 SHREE GANESH FOR SGFO 44.50 -2.89 SHREE RAMA MULTI SRMT 63.73 -52.93 SIDDHARTHA TUBES SDT 70.93 -12.09 SIL BUSINESS ENT SILB 12.46 -19.96 SOUTHERN PETROCH SPET 1,584.27 -4.80 SPICEJET LTD SJET 220.03 -76.12 STERLING HOL RES SLHR 52.91 -0.63 STI INDIA LTD STIB 28.05 -8.04 TAMILNADU TELE TNT 12.82 -5.15 TATA TELESERVICE TTLS 1,069.83 -154.99 TRIUMPH INTL OXIF 58.46 -14.18 TRIVENI GLASS TRSG 24.39 -8.90 TUTICORIN ALKALI TACF 14.15 -11.20 UNIFLEX CABLES UFC 45.05 -0.90 UNIFLEX CABLES UFCZ 45.05 -0.90 UNIWORTH LTD WW 145.71 -114.87 USHA INDIA LTD USHA 12.06 -54.51 VENTURA TEXTILES VRTL 14.25 -0.33 WINDSOR MACHINES WML 14.50 -28.14 WIRE AND WIRELES WNW 115.34 -34.49 JAPAN DAIWASYSTEM CO 8939 607.68 -259.76 DPG HOLDINGS INC 3781 11.77 -3.99 HARAKOSAN CO 8894 225.69 -62.68 JIPANGU HOLDINGS 2684 15.05 -8.38 KNT 9726 1,058.18 -13.37 L CREATE CO LTD 3247 42.34 -9.15 LCA HOLDINGS COR 4798 51.30 -2.57 NIHON INTER ELEC 6974 218.08 -50.73 PROPERST CO LTD 3236 305.90 -330.20 RAYTEX CORP 6672 41.66 -28.52 SAIKAYA CO LTD 8254 375.83 -72.59 SHINWA OX CORP 2654 41.06 -24.43 SHIOMI HOLDINGS 2414 190.97 -22.81 SUMITOMO MITSUI 1821 2,382.17 -98.97 TERRANETZ CO LTD 2140 11.63 -4.29 KOREA AJU MEDIA SOL-PF 44775 13.82 -1.25 DAHUI CO LTD 55250 186.00 -1.50 DAISHIN INFO 20180 740.50 -158.45 KEYSTONE GLOBAL 12170 10.61 -0.74 KUKDONG CORP 5320 51.19 -1.39 KUMHO INDUS-PFD 2995 5,837.32 -967.28 KUMHO INDUSTRIAL 2990 5,837.32 -967.28 ORICOM INC 10470 82.65 -40.04 SAMT CO LTD 31330 200.83 -152.09 SEOUL MUTL SAVIN 16560 874.79 -34.13 TAESAN LCD CO 36210 296.83 -91.03 TONG YANG MAGIC 23020 355.15 -25.77 YOUILENSYS CORP 38720 166.70 -12.34 MALAYSIA AXIS INCORPORATI AXIS 39.22 -86.70 GULA PERAK BHD GUP 91.03 -38.57 HO HUP CONSTR CO HO 68.68 -7.10 LCL CORP BHD LCL 45.27 -111.27 LIMAHSOON BHD LIMA 26.52 -1.56 LUSTER INDUSTRIE LSTI 22.97 -1.72 MEMS TECHNOLOGY MEMS 10.41 -20.77 NGIU KEE CO-BHD NKC 22.98 -0.16 OILCORP BHD OILC 91.94 -63.88 TRACOMA HOLDINGS TRAH 72.64 -6.19 NEW ZEALAND DORCHESTER PAC DPC 77.28 -2.01 PHILIPPINES APEX MINING 'B' APXB 45.84 -20.95 APEX MINING-A APX 45.84 -20.95 BENGUET CORP 'B' BCB 80.66 -37.36 BENGUET CORP-A BC 80.66 -37.36 CYBER BAY CORP CYBR 13.30 -83.83 EAST ASIA POWER PWR 42.01 -159.00 FIL ESTATE CORP FC 38.38 -13.37 FILSYN CORP A FYN 22.72 -10.89 FILSYN CORP. B FYNB 22.72 -10.89 GOTESCO LAND-A GO 18.68 -10.86 GOTESCO LAND-B GOB 18.68 -10.86 MRC ALLIED INC MRC 13.26 -5.43 PICOP RESOURCES PCP 105.66 -23.33 PRIME ORION PHIL POPI 90.35 -5.12 STENIEL MFG STN 22.11 -13.42 UNIVERSAL RIGHTF UP 45.12 -13.48 UNIWIDE HOLDINGS UW 52.80 -56.18 VICTORIAS MILL VMC 164.26 -18.20 SINGAPORE ADV SYSTEMS AUTO ASA SP Equit 14.49 -12.12 ADVANCE SCT LTD ASCT SP Equi 16.05 -43.84 HL GLOBAL ENTERP HLGE SP Equi 93.41 -11.84 JURONG TECH IND JTL SP Equit 98.76 -227.28 LINDETEVES-JACOB LJ SP Equity 135.79 -90.16 SUNMOON FOOD COM SMOON SP Equ 14.19 -14.22 TT INTERNATIONAL TTI SP Equit 256.51 -50.62 THAILAND ABICO HLDGS-F ABICO/F 15.28 -4.40 ABICO HOLDINGS ABICO 15.28 -4.40 ABICO HOLD-NVDR ABICO-R 15.28 -4.40 ASCON CONSTR-NVD ASCON-R 59.78 -3.37 ASCON CONSTRUCT ASCON 59.78 -3.37 ASCON CONSTRU-FO ASCON/F 59.78 -3.37 BANGKOK RUBBER BRC 95.77 -72.05 BANGKOK RUBBER-F BRC/F 95.77 -72.05 BANGKOK RUB-NVDR BRC-R 95.77 -72.05 CIRCUIT ELEC PCL CIRKIT 16.79 -96.30 CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30 CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30 DATAMAT PCL DTM 12.69 -6.13 DATAMAT PCL-NVDR DTM-R 12.69 -6.13 DATAMAT PLC-F DTM/F 12.69 -6.13 GRANDE ASSE-NVDR GRAND-R 206.18 -3.80 GRANDE ASSET H-F GRAND/F 206.18 -3.80 GRANDE ASSET HOT GRAND 206.18 -3.80 ITV PCL ITV 34.83 -100.25 ITV PCL-FOREIGN ITV/F 34.83 -100.25 ITV PCL-NVDR ITV-R 34.83 -100.25 K-TECH CONSTRUCT KTECH/F 39.74 -33.07 K-TECH CONSTRUCT KTECH 39.74 -33.07 K-TECH CONTRU-R KTECH-R 39.74 -33.07 KUANG PEI SAN POMPUI 17.70 -12.74 KUANG PEI SAN-F POMPUI/F 17.70 -12.74 KUANG PEI-NVDR POMPUI-R 17.70 -12.74 PATKOL PCL PATKL 52.89 -30.64 PATKOL PCL-FORGN PATKL/F 52.89 -30.64 PATKOL PCL-NVDR PATKL-R 52.89 -30.64 PICNIC CORPORATI PICNI 162.04 -79.86 PICNIC CORPORATI PICNI-R 162.04 -79.86 PICNIC CORPORATI PICNI/F 162.04 -79.86 PONGSAAP PCL PSAAP/F 23.00 -9.14 PONGSAAP PCL PSAAP 23.00 -9.14 PONGSAAP PCL-NVD PSAAP-R 23.00 -9.14 SAHAMITR PRESS-F SMPC/F 21.99 -4.01 SAHAMITR PRESSUR SMPC 21.99 -4.01 SAHAMITR PR-NVDR SMPC-R 21.99 -4.01 SUNWOOD INDS PCL SUN 19.86 -13.03 SUNWOOD INDS-F SUN/F 19.86 -13.03 SUNWOOD INDS-NVD SUN-R 19.86 -13.03 THAI-DENMARK PCL DMARK 15.72 -10.10 THAI-DENMARK-F DMARK/F 15.72 -10.10 THAI-DENMARK-NVD DMARK-R 15.72 -10.10 THAI-GERMAN PR-F TGPRO/F 53.47 -4.49 THAI-GERMAN PRO TGPRO 53.47 -4.49 THAI-GERMAN-NVDR TGPRO-R 53.47 -4.49 TRANG SEAFOOD TRS 13.34 -4.01 TRANG SEAFOOD-F TRS/F 13.34 -4.01 TRANG SFD-NVDR TRS-R 13.34 -4.01 UNIVERSAL S-NVDR USC-R 114.26 -20.53 UNIVERSAL STARCH USC 114.26 -20.53 UNIVERSAL STAR-F USC/F 114.26 -20.53 TAIWAN CHIEN TAI CEMENT 1107 202.42 -33.40 HELIX TECH-EC 2479T 23.39 -24.12 HELIX TECH-EC IS 2479U 23.39 -24.12 HELIX TECHNOL-EC 2479S 23.39 -24.12 PRODISC TECH 2396 253.76 -36.04 TAIWAN KOL-E CRT 1606U 507.21 -147.14 TAIWAN KOLIN-EN 1606V 507.21 -147.14 TAIWAN KOLIN-ENT 1606W 507.21 -147.14 VERTEX PREC-ENTL 5318T 42.86 -0.71 VERTEX PRECISION 5318 42.86 -0.71 ********* 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 ***