/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/100927.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, September 27, 2010, Vol. 13, No. 190 Headlines A U S T R A L I A DIRECT FACTORY: CFS Retail to Buy DFO Malls for AU$498 Million * AUSTRALIA: Had $54 Billion Budget Deficit in 2009-10 H O N G K O N G 668 HK: Court Enters Wind-Up Order AMP HOLDINGS: Court Enters Wind-Up Order APT SOLUTION: Court Enters Wind-Up Order BALYUN LIMITED: Court Enters Wind-Up Order BEST FOOD: Court to Hear Wind-Up Petition on October 27 BRILLIANT EMPIRE: Court to Hear Wind-Up Petition on November 3 CENTRIC TECHNOLOGY: Court Enters Wind-Up Order CHINA TOP: Court Enters Wind-Up Order CON CENTRIC: Court Enters Wind-Up Order ENKA TECHNOLOGY: Court Enters Wind-Up Order DONGSHENG STONE: Court to Hear Wind-Up Petition on October 6 FIRST INK: Court Enters Wind-Up Order GOLDEN PATH: Court Enters Wind-Up Order GREENWOOD DESIGN: Court Enters Wind-Up Order HOW MING: Court Enters Wind-Up Order I N D I A ATMASTCO PRIVATE: CRISIL Assigns 'BB+' Rating to INR23.2MM Loan BALA MURUGAN: CRISIL Places 'BB' Rating on INR410 Million LT Loan CHIKITSABRATI UDYOG: CRISIL Assigns 'D' Rating to INR554.3MM Loan CLIMAX SYNTHETICS: CRISIL Puts 'B' Rating on INR70MM Bank Debts COPPRROD INDUSTRIES: CRISIL Reaffirms 'BB' Ratings on Bank Debts DEVELOPMENT CREDIT: Fitch Gives Stable Outlook; Keeps 'D/E' Rating JAGADAMBHA COTTON: CRISIL Assigns 'BB-' Rating to INR150MM Debts JB ALUMINIUM: CRISIL Assigns 'B+' Rating to INR42 Million LT Loan KARNAL MILK: CRISIL Assigns 'BB' Rating to INR135MM Cash Credit KILBURN OFFICE: CRISIL Assigns 'C' Rating to INR120MM Cash Credit MERCURY TRAVELS: CRISIL Puts 'BB' Rating on INR125MM Cash Credit PRINCE FOUNDATIONS: CRISIL Reaffirms 'C' Rating on Term Loans SCOT INNOVATION: CRISIL Assigns 'B-' Ratings to Various Bank Debts S R LOG: CRISIL Assigns 'BB+' Rating to INR10 Million Cash Credit SAINSONS PAPER: CRISIL Reaffirms 'BB+' Rating on INR197M Term Loan SHRI MUTHURAM: CRISIL Puts 'B+' Rating on INR82.7MM Long-Term Loan SPANDANA COPPER: CRISIL Places 'B' Rating on INR5.60MM LT Loan WINNER NIPPON: Fitch Assigns National Long-Term Rating at 'B' K O R E A HYUNDAI ENGINEERING: Creditors Set November 12 Bid Deadline M A L A Y S I A LCL CORPORATION: Clasquin (Malaysia) Serves Writ of Summons LCL CORPORATION: Sells 40% Stake in Sunway Interiors for MYR4,000 KENMARK INDUSTRIAL: Gets Summons From FedEx for MYR35,329 Claim SATANG HOLDINGS: Unit Receives Summons From Daya Padu Enterprise N E W Z E A L A N D SOUTH CANTERBURY: Trustee to Repay 30,000 Depositors This Week S I N G A P O R E ACE FAMILY: Creditors' Proofs of Debt Due October 8 AGIO COUNTERTRADE: Creditors Get 0.04433% Recovery on Claims BEAUTY SAINT: Court Enters Wind-Up Order CALL CENTRE: Creditors' Proofs of Debt Due October 4 CITILINK HOLDINGS: Court to Hear Wind-Up Petition on October 1 EASTLINK SHIPBROKING: Court to Hear Wind-Up Petition on October 1 PRITSONS (S): Creditors Get 0.09038% Recovery on Claims S R I L A N K A SRI LANKA TELECOM: Fitch Affirms Issuer Default Rating at 'B+' - - - - - ================= A U S T R A L I A ================= DIRECT FACTORY: CFS Retail to Buy DFO Malls for AU$498 Million -------------------------------------------------------------- Nichola Saminather at Bloomberg News reports that CFS Retail Property Trust will pay AU$498 million (US$473 million) to acquire four shopping malls owned by Direct Factory Outlet in Australia. CFS Retail said in a statement to the Australian stock exchange on Friday that it had completed a deal to buy one mall in Sydney and three in Melbourne from the outlet chain, according to Bloomberg News. Bloomberg relates the trust will fund the purchase through a AU$540 million institutional equity raising. Austexx Pty Ltd., DFO's Melbourne-based parent, has put its AU$1.5 billion of shopping outlets up for sale to pay off debt accumulated before the global financial crisis, Bloomberg notes. "This is a unique opportunity to enter an increasingly important, yet immature retail format and sub-sector in Australia," Michael Gorman, fund manager at CFS Retail, said in the statement. According to Bloomberg, CFS Retail, managed by Colonial First State Property Retail Pty Ltd., will buy DFO shopping malls in Homebush in Sydney, South Wharf in the Docklands in Melbourne, and at domestic airports in the Melbourne suburbs of Moorabinn and Essendon. Bloomberg relates that the South Wharf purchase is contingent on CFS Retail's joint venture partner The Plenary Group's ability to get financing to double its interest to 50 percent. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 20, 2010, the Business Spectator said Direct Factory Outlet was granted a bank bailout after its owner, Austexx Pty Ltd, struck an agreement with lenders, which is likely to see the firm avoid being placed in receivership. Business Spectator related that a banking syndicate including Suncorp-Metway Ltd., National Australia Bank Ltd., St George Bank and Royal Bank of Scotland owed AU$450 million have agreed to extend a line of credit to DFO to ensure it can complete the construction of its unfinished South Wharf retail development. Founded in 1996, Direct Factory Outlets has eight factory outlet- style centres operating on the Eastern Seaboard. It was founded in 1996 by rich list members David Golberger and David Wieland, and is owned by holding company Austexx Pty Ltd. * AUSTRALIA: Had $54 Billion Budget Deficit in 2009-10 ------------------------------------------------------ Marion Rae at Bloomberg News reports that Australia's government budget deficit totaled AU$54.8 billion in the year to June 30, compared with the forecast AU$57.1 billion in the budget released in May, Treasurer Wayne Swan said Friday. "The government remains committed to its strict spending limits and fiscal strategy, which will see us return the budget to surplus in 2012-13, comfortably ahead of any major advanced economy," Mr. Swan said, according to Bloomberg. Citing an economic and fiscal outlook released before the Aug. 21 election, Bloomberg discloses that the government estimated a deficit of AU$40.7 billion this year, narrowing to a AU$10.4 billion deficit in 2011-12, and a surplus of AU$3.5 billion in 2012-13. ================ H O N G K O N G ================ 668 HK: Court Enters Wind-Up Order ---------------------------------- The High Court of Hong Kong entered an order on April 9, 2010, to wind up the operations of 668 Hong Kong Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. AMP HOLDINGS: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on February 18, 2010, to wind up the operations of AMP Holdings Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. APT SOLUTION: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on July 15, 2010, to wind up the operations of APT Solution Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. BALYUN LIMITED: Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on July 20, 2010, to wind up the operations of Balyun Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. BEST FOOD: Court to Hear Wind-Up Petition on October 27 ------------------------------------------------------- A petition to wind up the operations of Best Food Management Limited will be heard before the High Court of Hong Kong on October 27, 2010, at 9:30 a.m. Ho Kam Pui filed the petition against the company. BRILLIANT EMPIRE: Court to Hear Wind-Up Petition on November 3 -------------------------------------------------------------- A petition to wind up the operations of Brilliant Empire Limited will be heard before the High Court of Hong Kong on November 3, 2010, at 9:30 a.m. Maylok Toys Industries filed the petition against the company. The Petitioner's Solicitors are: Anthony Chiang & Partners 3903 Tower 2, Lippo Centre 89 Queensway Central, Hong Kong CENTRIC TECHNOLOGY: Court Enters Wind-Up Order ---------------------------------------------- The High Court of Hong Kong entered an order on April 9, 2010, to wind up the operations of Centric Technology (Hong Kong) Company Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. CHINA TOP: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on March 12, 2010, to wind up the operations of China Top Industries Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. CON CENTRIC: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on April 9, 2010, to wind up the operations of Con Centric Circuits Company Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. ENKA TECHNOLOGY: Court Enters Wind-Up Order ------------------------------------------- The High Court of Hong Kong entered an order on May 18, 2009, to wind up the operations of Enka Technology Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. DONGSHENG STONE: Court to Hear Wind-Up Petition on October 6 ------------------------------------------------------------ A petition to wind up the operations of Dongsheng Stone Industrial (HK) Company Limited will be heard before the High Court of Hong Kong on October 6, 2010, at 9:30 a.m. Great Harvest Construction Engineering Limited filed the petition against the company on August 3, 2010. The Petitioner's solicitors are: To, Lam & Co Units 1503B-1504 15th Floor, Wing On House 71 Des Voeux Road Central, Hong Kong FIRST INK: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on January 18, 2010, to wind up the operations of First INK International Holding Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. GOLDEN PATH: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on July 20, 2010, to wind up the operations of Golden Path Investment Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. GREENWOOD DESIGN: Court Enters Wind-Up Order -------------------------------------------- The High Court of Hong Kong entered an order on July 28, 2010, to wind up the operations of Greenwood Design & Decoration Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. HOW MING: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on April 22, 2010, to wind up the operations of How Ming Garment Factory Limited. The company's liquidators are Yu Tak Yee Beryl and Choi Tze Kit Sammy. ========= I N D I A ========= ATMASTCO PRIVATE: CRISIL Assigns 'BB+' Rating to INR23.2MM Loan --------------------------------------------------------------- CRISIL has assigned its 'BB+/Stable/P4+' ratings to Atmastco Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR48.0 Million Cash Credit Limit BB+/Stable (Assigned) INR23.2 Million Term Loan BB+/Stable (Assigned) INR10.0 Million Bank Guarantee P4+ (Assigned) The ratings reflect APL's small scale of operations, large working capital requirements, and susceptibility to intense competition in the industrial products trading industry. These rating weaknesses are partially offset by APL's moderate financial risk profile, marked by moderate gearing and debt protection metrics, and improving market position in the fabrication segment. Outlook: Stable CRISIL believes that APL's scale of operations will remain small, with no major growth in its trading division, over the medium term. The company's financial risk profile will also remain moderate, with low gearing and the absence of major debt-funded capital expenditure (capex) plans, over the medium term. The outlook may be revised to 'Positive' if APL successfully achieves substantial growth in revenues, backed by its new fabrication business, resulting in an increase in its scale of operations and a significant improvement in profitability. Conversely, the outlook may be revised to 'Negative' if the company faces pressure on its operating margin, or undertakes a large, debt-funded capex programme over the medium term. About Atmastco Pvt APL was set up in 1987 as a partnership firm by Mr. Swaminathan and Mr. Venkateshwara, and was reconstituted as a private limited company in the late 1990s. APL commenced operations by trading in industrial products including dumper parts, electrodes (welding rods), and miscellaneous spare parts. In 1993, the promoters started undertaking engineering onsite jobs for fabrication of new plants. The company entered into specialized steel trading in 1997. It discontinued the industrial products trading business in early 2000s, and in 2003 stopped undertaking onsite jobs and set up a separate fabrication division for the fabrication of heavy steel columns and assemblies. Currently, APL has two divisions: the trading division (contributes around 75 per cent of total sales), in which the company trades in specialized steel plates and structures such as angles and columns; and the fabrication division (around 25 per cent of total sales) for fabricating heavy steel columns and assemblies for power plants, and supplying to power plant equipment manufacturing companies such as Bharat Heavy Electricals Ltd (rated 'AAA/Stable/P1+' by CRISIL) and Larsen & Toubro Ltd ('AAA/FAAA/Stable/P1+'). APL is estimated to report a profit after tax (PAT) of INR22 million on operating income of INR988 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR14 million on operating income of INR858 million for 2008-09. BALA MURUGAN: CRISIL Places 'BB' Rating on INR410 Million LT Loan ----------------------------------------------------------------- CRISIL has assigned its 'BB/Stable' rating to Bala Murugan Chemicals Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR410.00 Million Long Term Loan BB/Stable (Assigned) INR100.00 Million Cash Credit BB/Stable (Assigned) The rating reflect BALCHEM's exposure to risks related to implementation and stabilization of operations at its upcoming titanium dioxide pigment manufacturing plant and the supplier concentration risks the company faces with respect to its proposed sourcing of ilmenite and sulphuric acid. These rating weaknesses are partially offset by the financial support that BALCHEM gets from its parent, Beach Minerals Company Pvt Ltd. BALCHEM also benefits from operational synergies with BMC, resulting from vertically integrated operations and proximity to raw material sources. Outlook: Stable CRISIL believes that BALCHEM will maintain a stable credit risk profile backed by support from BMC over the medium term. The outlook may be revised to 'Positive' if BALCHEM stabilises operations at its upcoming titanium dioxide manufacturing plant and generates more-than-expected revenues and operating margin, thereby improving its financial risk profile significantly. Conversely, the outlook may be revised to 'Negative' if BALCHEM delays stabilization of operations at the upcoming plant and faces cost overruns in the project, resulting in poor margins, or undertakes larger-than-expected debt-funded capital expenditure programme, resulting in deterioration in its financial risk profile. About Bala Murugan BMC owns 99.7 per cent of BALCHEM's equity. BALCHEM proposes to manufacture titanium dioxide pigment (anatase form) from ilmenite ore from BMC's Kuttam mines (near Turicorin in Tamil Nadu). The upcoming plant is expected to have capacity of 15,000 tonnes per annum (tpa); the plant is expected to commence operations in September 2010. The BMC group, of which BMC is the flagship entity, is promoted by Mr. S. Sukumar and his wife Mrs. Kalaiyarasi; the group comprises 13 companies. BMC is into mining, processing, and exporting of beach minerals. The other group entities are into diverse businesses, such as mining of beach minerals, transportation, shipping, construction aggregates, and kitchen cutlery. CHIKITSABRATI UDYOG: CRISIL Assigns 'D' Rating to INR554.3MM Loan ----------------------------------------------------------------- CRISIL has assigned its 'D/P5' ratings to Chikitsabrati Udyog's bank facilities. The ratings reflect delay by Chikitsabrati in servicing its term loan; the delay has been caused by Chikitsabrati's weak liquidity. Facilities Ratings ---------- ------- INR554.3 Million Term Loan D (Assigned) INR20 Million Proposed Term Loan D (Assigned) INR24.7 Million Proposed Long-Term D (Assigned) Bank Loan Facility INR1 Million Bank Guarantee P5 (Assigned) Chikitsabrati is exposed to risks related to implementation of and funding for its 300-bed Sanjiban Hospital and Research Centre project. The society, however, benefits from its qualified founder-members and its presence in the growing healthcare segment. Chikitsabrati was set up in 2006 as a society, registered under the West Bengal Societies Registration Act. The society is setting up a multi-disciplinary 300-bed hospital named Sanjiban Hospital and Research Centre at Phuleshwar, Howrah (West Bengal). The society also plans to set up a biomass-gasification-based power plant of 1.44 megawatt capacity at Phuleshwar. According to the management, the projects would become operational by December 2010. CLIMAX SYNTHETICS: CRISIL Puts 'B' Rating on INR70MM Bank Debts --------------------------------------------------------------- CRISIL has assigned its 'B/Stable/P4' ratings to the bank facilities of Climax Synthetics Pvt Ltd. Facilities Ratings ---------- ------- INR70.0 Million Cash Credit Facility B/Stable (Assigned) INR15.0 Million Bill Discounting P4 (Assigned) INR42.5 Million Letter of Credit P4 (Assigned) INR38.0 Million Bank Guarantee P4 (Assigned) The ratings reflect CSPL's weak financial risk profile, marked by high gearing, small net worth, and weak debt protection metrics, and exposure to equity-investments-related market risks. These rating weaknesses are partially offset by the benefits that CSPL derives from its promoters' industry experience. Outlook: Stable CRISIL believes that CSPL will continue to benefit over the medium term from its diversified revenue profile and promoters' industry experience. However, the company's financial risk profile is expected to remain constrained by weak debt protection metrics. The outlook may be revised to 'Positive' if CSPL reports higher- than-expected revenue growth, with improved profitability. Conversely, the outlook may be revised to 'Negative' if the company incurs losses on its investments in equity shares, or its financial risk profile deteriorates further because of larger- than-expected debt-funded capital expenditure. About Climax Synthetics Incorporated in 1974 by Mr. K R Mundhra and his brother, CSPL manufactures high-density and low-density polyethylene sheets, geomembranes, pipes, and fittings. The company's manufacturing facility at Vadodara (Gujarat), with capacity to manufacture 14,000 tonnes of plastic sheets per annum, is presently operating at about 40 per cent utilisation level. The company is also a stockist for GAIL (India) Ltd, which has been dealing in plastic granules, since 1996-97 (refers to financial year, April 1 to March 31). CSPL also trades in plastic products; it derived about 30 per cent of its total revenues from this business in 2009-10. CSPL reported a profit after tax (PAT) of INR6.6 million on net sales of INR528.4 million for 2009-10, against a PAT of INR6.7 million on net sales of INR568.8 million for 2008-09. COPPRROD INDUSTRIES: CRISIL Reaffirms 'BB' Ratings on Bank Debts ---------------------------------------------------------------- CRISIL's rating on the bank facilities of Copprrod Industries Pvt Ltd, part of the Copprrod group, continues to reflect the Copprrod group's working-capital-intensive operations, and its exposure to risks relating to customer and supplier concentration, and moderate scale of operations in the intensely competitive copper- product industry. These weaknesses are partially offset by the group's improved financial risk profile, and the benefits that it derives from its promoters' experience in the copper-products business and its established client relationships. Facilities Ratings ---------- ------- INR40.00 Million Long-Term Loan BB/Stable (Reaffirmed) INR25.00 Million Cash Credit Limit BB/Stable (Reaffirmed) INR55.00 Million Proposed Long Term BB/Stable (Reaffirmed) Bank Loan Facility For arriving at the rating, CRISIL has combined the business and financial risk profiles of Copprrod, SCR Wire Products (SCR Wire), and Classic Wire Installations. This is because the three entities, together referred to as the Copprrod group, are in the same line of business, and have common promoters and fungible funds. Outlook: Stable CRISIL believes that the Copprrod group will continue to benefit from its healthy relationships with its customers, over the medium term. The outlook may be revised to 'Positive' in case of an improvement in the group's scale of operations, resulting in more- than-expected cash flows, and/or an improvement in its capital structure, most likely because of equity infusions. Conversely, the outlook may be revised to 'Negative' if inefficient raw material procurement affects the group's margins and cash flows, its net worth declines because of withdrawals by promoters, or if it undertakes a large, debt-funded capital expenditure programme, leading to deterioration in its debt protection measures. Update The Copprrod Group's revenues in 2009-10 (refers to financial year, April 1 to March 31) were higher than CRISIL's expectations because of stabilisation of operations at Copprrod and improvement in the group's customer profile. The group's operating margin, however, at 8.1 per cent was lower than CRISIL's expectations due to volatility in raw material prices. The group's gearing at 1.7 times as on March 31, 2010, was in line with CRISIL's projections, and is expected to improve marginally over the medium term. The group has adequate liquidity with unencumbered cash and bank balance of INR16 million and cash accruals of about INR50 million as on March 31, 2010, partially offset by full utilization of working capital limits over the past 12 months ended July 2010. The Copprrod group's financial risk profile remains comfortable for the rating category. The Copprrod group, on a provisional basis, reported a profit after tax (PAT) of INR40.6 million on net sales of INR954 million for 2009-10, against a PAT of INR7.3 million on net sales of INR346 million for 2008-09. About Copprrod group Set up in 2007 by Mr. H G Chandrasekar, Copprrod manufactures copper rods, silver-plated copper wires, bus bars, flats, and strips. Based at Tumkur (Karnataka), the company commenced operations in August 2008 and operates with a manufacturing capacity of 5000 tonnes per annum. The company procures copper cathodes from Sterlite Industries Ltd. It sells 30 per cent of its output to group companies, and the balance to customers such as ABB Ltd (rated 'AAA/Stable/P1+' by CRISIL), Alstom Ltd, The Kirloskar Electric Company Ltd, and Sahney Commutators Pvt Ltd. Set up in 1993 as a proprietary firm by Mr. Chandrasekar, SCR Wire manufactures magnet winding wire used in power and distribution transformers, motors, and automotive electrical products. Classic Wire, set up as a proprietary firm in 1997 by Mr. Chandrasekar's wife, Mrs. Shasikala Chandrasekar, manufactures enamelled copper wires. DEVELOPMENT CREDIT: Fitch Gives Stable Outlook; Keeps 'D/E' Rating ------------------------------------------------------------------ Fitch Ratings has revised India's Development Credit Bank Limited's Outlook to Stable from Negative. The agency has simultaneously affirmed DCB's National Long-term rating at 'BBB(ind)', Individual Rating at 'D/E' and Support Rating at '5'. The agency has also affirmed DCB's INR1 billion lower Tier 2 subordinated debt programme at 'BBB(ind)'. The Outlook revision reflects the gradual improvement in DCB's financial profile since early 2010 and the muted expectation of any significant increase in loan loss in the present buoyant operating environment. The bank's distressed unsecured consumer loan portfolio is in a run-off mode, and it has been expanding in the secured retail (including residential mortgage), small- and mid-corporate, Agri finance and MFI financing segments. For this, the funding has mostly been from current & saving accounts deposits and retail term deposits, which the management is committed to maintain. DCB's Individual and National Long-term ratings also reflect its weak performance, including the high operating cost structure and small balance sheet size. DCB's gross NPLs grew marginally to INR3.19 billion (gross NPL ratio 8.7%) in FY10 from INR3.06 billion in FY09 (FY09 gross NPL ratio 8.9%) as the net increase was mitigated by up-gradation, recovery and write-offs. Fitch expects the bank's asset quality to stabilize as delinquencies have peaked in the unsecured consumer loan portfolio and incremental delinquencies are expected to be limited. The bank has also provided adequate coverage for its existing NPLs. Nevertheless, the bank has some concentrated exposures to few mid-corporates clients - the segment vulnerable to business cyclicality. If these exposures turn bad or there is any deterioration in the economic environment, the bank's recovery could be potentially derailed. DCB's capital improved marginally in FY10 (CAR 14.9%, Tier1: - 11.9%) over FY09 (CAR: 13.4%, Tier1: -11.6%). The bank raised INR0.81 billion of common equity from the market in FY10 and is planning to raise additional capital from the market in FY11. This should boost its capital further and provide additional cushion for any incremental losses. Negative rating triggers include DCB's inability to demonstrate sustained improvement in its performance and asset quality, which could potentially erode its equity. The Outlook could be revised to Positive if there is a sustained improvement in DCB's performance. DCB is a small private sector bank. It is 23% owned by the Aga Khan Fund for Economic Development, which has to be reduced to 10% by 2014 as per RBI's directions. DCB's lower Tier 2 subordinated bonds have been rated at the same level as its National Long-term rating based on Fitch's "Criteria for Indian National Ratings of Bank Hybrids and Subordinated Debt", dated 18 January 2010. JAGADAMBHA COTTON: CRISIL Assigns 'BB-' Rating to INR150MM Debts ---------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable' rating to Jagadambha Cotton Industries Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR150.0 Million Cash Credit BB-/Stable (Assigned) INR26.2 Million Rupee Term Loan BB-/Stable (Assigned) The rating reflects JCIPL's moderate financial risk profile, marked by high gearing, average debt protection metrics, and small net worth; the rating also factors in JCIPL's modest scale of operations and exposure to risks related to adverse regulatory changes. These rating weaknesses are partially offset by the benefits that JCIPL derives from its established relationships with large customers. Outlook: Stable CRISIL believes that JCIPL will maintain its moderate business risk profile over the medium term, supported by established relationships with customers. The company's financial risk profile will, however, remain average over the medium term, marked by high gearing. The outlook may be revised to 'Positive' if JCIPL reports substantial growth in revenues and profitability, while improving its capital structure. Conversely, the outlook may be revised to 'Negative' if large, debt-funded capital expenditure materially weakens the company's debt protection metrics or capital structure. About Jagadambha Cotton JCIPL, set up in 2006, gins and presses raw cotton, and makes cotton bales. It also sells cotton seeds. Around 80 per cent of the company's revenue is derived from selling cotton bales, and the remainder from sale of cotton seeds. The company is owned and managed by Mr. G Srinivasa Rao and Mr. Vinod Kumar Agarwal. The company's ginning unit at Khammam (Andhra Pradesh), has capacity to manufacture 450 cotton bales per day. JCIPL reported a profit after tax (PAT) of INR10.9 million on net sales of INR780.0 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR2.6 million on net sales of INR239.5 million for 2008-09. JB ALUMINIUM: CRISIL Assigns 'B+' Rating to INR42 Million LT Loan ----------------------------------------------------------------- CRISIL has assigned its 'B+/Stable/P4' ratings to JB Aluminium Extrusion's bank facilities. Facilities Ratings ---------- ------- INR42.00 Million Long-Term Loan B+/Stable (Assigned) INR45.00 Million Cash Credit B+/Stable (Assigned) INR15.00 Million Letter of Credit P4 (Assigned) The ratings reflect JB's limited track record in the aluminium extrusions manufacturing sector, small scale of operations, and below-average financial risk profile, marked by its low net cash accruals, and weak capital structure and debt protection metrics. These rating weaknesses are partially offset by the benefits that JB derives from its promoters' experience in the aluminium sheet trading business, and healthy demand for aluminium extrusions. Outlook: Stable CRISIL believes that JB will continue to benefit from the healthy growth prospects for aluminium extrusion products, and promoters' extensive experience in the trading of aluminium extruded products, over the medium term. The outlook may be revised to 'Positive' if JB scales up its operations successfully, while improving its capital structure and debt protection metrics. Conversely, the outlook may be revised to 'Negative' if JB fails to utilize its enhanced capacities at optimal levels, or undertakes a large, debt-funded capital expenditure programme, leading to deterioration in its financial risk profile. About JB Aluminium Set up in 2009 as a proprietorship firm, JB commenced commercial operations in February 2010. The firm manufactures aluminum sheets and profiles. The product portfolio comprises aluminum doors, windows frames, panels, channels, and verticals which find their application in construction of residential property, and other sectors such as, transport, power, and consumer goods. The firm has capacity of 2400 tonnes per annum and. JB reported a provisional profit after tax (PAT) of INR0.42 million on net sales of INR11million for 2009-10 (refers to financial year, April 1 to March 31). KARNAL MILK: CRISIL Assigns 'BB' Rating to INR135MM Cash Credit --------------------------------------------------------------- CRISIL has assigned its 'BB/Stable/P4+' ratings to Karnal Milk Foods Ltd's bank facilities. Facilities Ratings ---------- ------- INR135.0 Million Cash Credit BB/Stable (Assigned) INR26.5 Million Rupee Term Loan BB/Stable (Assigned) INR71.1 Million Proposed Long BB/Stable (Assigned) Term Bank Loan Facility INR70.0 Million Letter of Credit P4+ (Assigned) & Bank Guarantee The ratings reflect Karnal's average financial risk profile, marked by low net worth and weak debt protection measures, and modest scale of operations. These rating weaknesses are partially offset by the benefits that Karnal derives from its established customer base, and diversified revenue profile. Outlook: Stable CRISIL believes that Karnal will maintain its business risk profile on the back of established customer base and diversified revenue profile. The outlook may be revised to 'Positive' if the company's operating margins and net cash accruals improve substantially, thereby positively affecting the company's debt protection measures. Conversely, the outlook may be revised to 'Negative' if Karnal's operating profitability declines materially, or if the company takes on larger-than-expected debt funded capital expenditure programmes, adversely affecting its financial risk profile. About Karnal Milk Karnal, incorporated in 1991 by Mr. Gian Prakash Gupta and his family members, processes butter, ghee, milk powder, whitener, and other milk products. The company has established a strong customer base, including Britannia Industries Ltd (rated 'AAA/Stable/P1+' by CRISIL), Nestle India Ltd (rated 'AAA/Stable/P1+' by CRISIL), and ITC Ltd (rated 'AAA/Stable/P1+' by CRISIL), apart from selling its products through large network dealers. The company also trades in butter oil and lactose. Karnal reported a profit after tax (PAT) of INR6 million on net sales of INR1011 million for 2009-10 (refers to financial year, April 1 to March 31) against a PAT of INR6 million on net sales of INR931 million for 2008-09. KILBURN OFFICE: CRISIL Assigns 'C' Rating to INR120MM Cash Credit ----------------------------------------------------------------- CRISIL has assigned its 'C/P4' ratings to Kilburn Office Automation Ltd's bank facilities. Facilities Ratings ---------- ------- INR120 Million Cash Credit C (Assigned) INR70 Million Letter of Credit P4 (Assigned) INR15 Million Bank guarantee P4 (Assigned) The ratings reflect several past instances of devolvement of letter of credit (LC) and overutilisation of cash credit limit by KOAL, the company's below-average financial risk profile, marked by small net worth, high gearing, weak debt protection metrics, and stretched liquidity, and large working capital requirements. These rating weaknesses are partially offset by expected improvement in KOAL's business profile, driven by diversification of its product profile. KOAL trades in office equipment, mainly copiers, and banking and mailing products. The product profile of the company comprises various plain-paper copiers, note-counting machines, coin-operated vending machines, shrink-wrap machines, document binders, and ammonia printing machines. The company also trades in finished components of these products. KOAL has long-term tie-ups with Pitney Bowes India Pvt Ltd, Kyocera Mita India Pvt Ltd, and Kusters Engineering India Ltd for purchase of the above products. In addition to trading in these products, KOAL manufactures shrink-wrap machines, fake-note detecting machines, note-counting machines, and printing machines. Revenue from sale of its own manufactured products is, however, very low at around 3 per cent in 2009-10 (refers to financial year, April 1 to March 31). KOAL also provides maintenance services for the products sold by it. The day-to-day operations of the company are looked after by its current managing director, Mr. Vardarajan Vanchi. KOAL reported a profit after tax (PAT) of INR12.1 million on net sales of INR393.6 million for 2009-10, against a PAT of INR14.6 million on net sales of INR353.4 million for 2008-09. MERCURY TRAVELS: CRISIL Puts 'BB' Rating on INR125MM Cash Credit ---------------------------------------------------------------- CRISIL has assigned its 'BB/Stable/P4+' ratings to Mercury Travels Ltd's bank facilities. Facilities Ratings ---------- ------- INR125.0 Million Cash Credit BB/Stable (Assigned) INR30.0 Million Bank Guarantee P4+ (Assigned) The ratings reflect MTL's average financial risk profile constrained by weak debt protection measures and exposure to risks relating to adverse external events and increasing competition constraining revenue growth and profitability. These rating weaknesses are partially offset by MTL's established market position, and its promoters' experience, in the tour and travel management industry. Outlook: Stable CRISIL believes that Mercury Travels Ltd will maintain its market position, and benefit from its promoters' experience in the tour and travel management industry over the medium term. The outlook may be revised to 'Positive' if the company scales up its operations, with significant and sustained improvement in its profitability. Conversely, the outlook may be revised to 'Negative' if large debt contracted to fund capex leads to material deterioration in MTL's financial risk profile. About Mercury Travels MTL is a travel solutions company offering corporate travel management, inbound travel and outbound leisure travel planning, foreign exchange, and cargo services. Incorporated in 1948, MTL was a wholly owned subsidiary of EIH Ltd, which owns/operates the Oberoi group of hotels. In 2006, Mr. Ashwini Kakkar and his associates acquired a 74.9 per cent stake in MTL and the balance stake is held by EIH Ltd. MTL is estimated to report a net loss of INR20.5 million on net sales of INR194.2 million for 2009-10 (refers to financial year, April 1 to March 31), against a net loss of INR30.1 million on net sales of INR227.2 million for 2008-09. PRINCE FOUNDATIONS: CRISIL Reaffirms 'C' Rating on Term Loans ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Prince Foundations Ltd continue to reflect the delays by PFL in servicing its term loan between July 2009 and May 2010; the loan was fully repaid in June 2010. The company has been paying the interest obligations on its other term loans on time since then. Facilities Ratings ---------- ------- INR418.8 Million Cash Credit (Enhanced from INR250.0 Million) C INR90.0 Million Bank Guarantee P4 (Enhanced from INR50.0 Million) INR400.0 Million Rupee Term Loans C (Reaffirmed) Reduced from INR1000.0 Million) INR391.2 Million Proposed Long-Term C (Reaffirmed) Bank Loan Facility This rating weakness is partially offset by PFL's promoters' experience in the construction sector and the favourable locations of its projects. PFL was incorporated in 2004 and is based in Chennai; it was promoted by Mr. Ashwin Kamdar. The company was reconstituted as a public limited company in March 2007. PFL develops real estate projects, such as integrated information technology parks, and residential and service apartments. So far, the company has completed and sold four projects, covering approximately 1 million square feet of saleable area, in Chennai and its suburbs. PFL reported, on provisional basis, a profit after tax (PAT) of INR24.23 million on net sales of INR1035.40 million for 2009-10; it reported a PAT of INR17.07 million on net sales of INR245.87 million for 2008-09. SCOT INNOVATION: CRISIL Assigns 'B-' Ratings to Various Bank Debts ------------------------------------------------------------------ CRISIL has assigned its 'B-/Stable/P4' ratings to Scot Innovation Wires and Cables Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR70.00 Million Cash Credit B-/Stable (Assigned) INR149.50 Million Proposed LT B-/Stable (Assigned) Bank Loan Facility INR20.00 Million Term Loan B-/Stable (Assigned) INR10.50 Million Standby Line B-/Stable (Assigned) of Credit INR7.50 Million Letter of Credit P4 (Assigned) INR12.50 Million Bank Guarantee P4 (Assigned) INR30.00 Million Proposed Short- Term Bank Loan Facility P4 (Assigned) The ratings reflect SIWC's weak liquidity because of large working capital requirements, small scale of operations, and susceptibility to volatility in raw material prices. These rating weaknesses are partially offset by SIWC's promoters' experience in the wires and cables industry, and the company's moderate gearing and debt protection metrics. Outlook: Stable CRISIL believes that SIWC's scale of operations will remain small and its liquidity weak because of large working capital requirements, over the medium term. The outlook may be revised to 'Positive' if SIWC improves its liquidity significantly through fresh equity infusion and increases its scale of operations. Conversely, the outlook may be revised to 'Negative' if the company's liquidity weakens further and its capital structure deteriorates due to larger-than-expected working capital borrowings or debt-funded capital expenditure. About Scot Innovation SIWC was set up in April 2005 under the proprietorship of Mrs. Neha Gupta. It was reconstituted as a private limited company in August 2006 under the name Scot Cables Pvt Ltd. Its name was changed to the current one later in 2006. SIWC manufactures different types of electric wires and cables, including power and control cables, low-tension cross-linked polythene cables, polyvinyl chloride cables, lighting cables, insulated electric cables, copper and aluminium welding cables, and industrial cables, all under the brand Ekta. SIWC's products are used in industrial, real estate, and power sectors. The company's manufacturing unit is in Baddi (Himachal Pradesh). SIWC's profit after tax (PAT) and net sales are estimated to be INR19.3 million and INR385.1 million respectively for 2009-10 (refers to financial year, April 1 to March 31); it reported a PAT of INR15.1 million on net sales of INR207.0 million for 2008-09. S R LOG: CRISIL Assigns 'BB+' Rating to INR10 Million Cash Credit ----------------------------------------------------------------- CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank facilities S R Log Products Pvt Ltd, which is part of the SR group. Facilities Ratings ---------- ------- INR10.00 Million Cash Credit BB+/Stable (Assigned) INR110.00 Million Letter of Credit P4+ (Assigned) The ratings reflect the SR group's exposure to risks related to intense competition in the timber industry to high dependence on Malaysia for timber supplies. These rating weaknesses are partially offset by expertise of the SR group's promoter's in procurement of timber and moderate financial risk profile, marked by moderate net worth, moderate cash accruals and low total outside liabilities to its total net worth (TOL/TNW) ratio. For arriving at the ratings, CRISIL has combined the business and the financial risk profiles of SR Log, SR Timber Products Pvt Ltd, and SR Worth Ayat Niryat Pvt Ltd, collectively referred to as the SR group. This is because all these companies are under a common management, and are in similar line of business. Further, SR Timber and SR Worth have given cross guarantees to each others debt. Outlook: Stable CRISIL believes that the SR group will maintain a stable credit risk profile over the medium term, backed by its moderate business risk profile. The outlook may be revised to 'Positive' if the group's profitability and working capital management improve, leading to high cash flows from operations. Conversely, the outlook may be revised to 'Negative' if the group undertakes a fresh, large, debt-funded capex programme, or acquisition, leading to deterioration in its financial risk profile. About SR Group The SR group trades and manufactures timber. SR Timber, set up in 2001 by Mr. Akhilesh Singh and Mr. Sashi Bhushan Singh is a trader of timber. In 2004, Mr. Akhilesh Singh along with his sister Mrs. Chittra Singh floated SR Worth for manufacturing value-added wooden products. Later, in 2005, the promoters incorporated another company SR Log, for trading of timber. The SR group reported a profit after tax (PAT) of INR17.4 million on net sales of INR2,293 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR10.6 million on net sales of INR1,719 million for 2008-09. SAINSONS PAPER: CRISIL Reaffirms 'BB+' Rating on INR197M Term Loan ------------------------------------------------------------------ CRISIL's rating on Sainsons Paper Industries Ltd's bank facilities continues to reflect SPIL's exposure to intense competition in the kraft paper market and susceptibility to volatility in kraft paper prices. Facilities Ratings ---------- ------- INR100 Million Cash Credit Limit BB+/Stable (Reaffirmed) INR197 Million Term Loan BB+/Stable (Reaffirmed) The ratings also factor in the company's weak financial risk profile, marked by small net worth and high gearing. These rating weaknesses are partially offset by SPIL's moderate business risk profile and promoters' experience in the kraft paper industry. Outlook: Stable CRISIL believes that SPIL will maintain its business risk profile over the medium term, supported by its stable operations. The company's financial risk profile is expected to improve in the medium term on the back of repayment of term debt and the absence of any major capital expenditure (capex). The outlook may be revised to 'Positive', if SPIL maintains its operating margin and improves its capital structure. Conversely, the outlook may be revised to 'Negative' SPIL undertakes a larger-than-expected debt- funded capex. About Sainsons Paper SPIL was incorporated in 1989 and manufactures kraft paper. The company's production facility at Kurukshetra (Haryana) currently has capacity of 36,000 tonnes per annum (tpa), which it intends to increase to about 54,000 tpa. It uses agriculture-residues as its primary raw material. In 2009-10 (refers to financial year, April 1 to March 31), SPIL reported, on provisional basis, a profit after tax (PAT) of INR16.5 million on net sales of INR519.3 million, against a PAT of INR10.8 million on net sales of INR460.8 million for the previous year. SHRI MUTHURAM: CRISIL Puts 'B+' Rating on INR82.7MM Long-Term Loan ------------------------------------------------------------------ CRISIL has assigned its 'B+/Stable' rating to Shri Muthuram Export Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR82.70 Million Long Term loan B+/Stable (Assigned) INR50.00 Million Cash Credit B+/Stable (Assigned) The rating reflects SMEPL's weak financial risk profile, marked by high gearing and below-average debt protection metrics; the rating also factors in the company's exposure to risks relating to small scale of operations and intense competition in the cotton grey fabric industry, and to volatility in raw material prices. These rating weaknesses are partially offset by the benefits that SMEPL derives from its promoters' experience in the cotton grey fabric market. Outlook: Stable CRISIL believes that SMEPL will continue to benefit from its promoters' strong track record in the cotton grey fabric business over the medium term. The outlook may be revised to 'Positive' if SMEPL's capital structure and liquidity improve significantly supported by substantial increase in cash accruals or equity infusion by the promoters. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile deteriorates because of sharp decline in its operating margin and revenues, or if SMEPL undertakes larger-than-expected, debt-funded capital expenditure programmes. About Shri Muthuram Set up in 1984, SMEPL manufactures 100 per cent grey cotton fabric and cotton yarn. The managing director of the company Mr. Muthusamy has around 26 years of experience in similar lines of business. The company's day-to-day operations are managed by its promoter directors Mr. M Theivasigamani, Mr. M Ganeshan, and Mr. M Srinivasan SMEPL reported a provisional profit after tax (PAT) of INR1 million on net sales of INR220 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR1 million on net sales of INR235 million for 2008-09. SPANDANA COPPER: CRISIL Places 'B' Rating on INR5.60MM LT Loan -------------------------------------------------------------- CRISIL has assigned its 'B/Stable/P4' ratings to Spandana Copper Conductors' bank facilities. Facilities Ratings ---------- ------- INR5.60 Million Long-Term Loan B/Stable (Assigned) INR35.00 Million Cash Credit B/Stable (Assigned) INR9.00 Million Letter of Credit P4 (Assigned) The ratings reflect SCC's large working capital requirements, small scale of operations, and susceptibility to volatility in raw material prices and forex rates. These rating weaknesses are partially offset by SCC's promoters experience in the aluminium and copper conductor business. Outlook: Stable CRISIL believes that SCC will maintain its market position in the aluminium and copper conductor business over the medium term, backed by promoter's experience. The outlook may be revised to 'Positive' if SCC significantly increases its revenues, improves profitability, and increases cash accruals, thereby strengthening its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the firm's revenues or margins decline significantly, or if it undertakes a large, debt-funded capital expenditure programme, resulting in deterioration of its financial risk profile. About Spandana Copper Set up in year 2006 by Mr. Prashant Yadav as a sole proprietorship concern, SCC manufactures aluminium and copper conductors. The firm specialises in manufacturing bare and insulated flat/rectangular/strip aluminium and copper conductors. These products are used in overhead electrical transmission and distribution systems, electrical motors, power generators, and alternators. SCC's reported (provisional) a profit after tax (PAT) of about INR1 million on net sales of INR99 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR2 million on net sales of INR126 million for 2008-09. WINNER NIPPON: Fitch Assigns National Long-Term Rating at 'B' ------------------------------------------------------------- Fitch Ratings has assigned India's Winner Nippon Electronics Ltd. a National Long-term rating of 'B(ind)'. The Outlook is Stable. The agency has also assigned ratings to WNEL's instruments: - Outstanding INR72.1 million long-term bank loans: 'B(ind)'; - INR60 million fund-based working capital limits: 'B(ind)'/'F4(ind)'; and - INR37.5 million non-fund based limits: 'F4(ind)'. The ratings reflect WNEL's small size of operations, limited track record of its promoters in domestic synthetic textile business and low capacity utilization in both its business segments - polypropylene spun bond non-woven cloth (48%) and polyurethane/polyvinyl chloride synthetic leather (4.9%) in FY10. The company's financial leverage (total adjusted net debt/operating EBITDAR) remained high at 9.22x in FY10 (FY09: 11.03x), essentially due to high unsecured debt of INR167.8 million from its parent - Raglan Infrastructure Ltd., a real estate company. This was partly mitigated by WNEL's moderate interest coverage of 2.36x in FY10 (FY09:1.43x) on account of debt from Raglan being interest free. Fitch believes WNEL's financial leverage will remain high over the short-term as its working capital debt is expected to increase with the increase in its scale of operations. The ratings are further constrained by WNEL's dependence on PP, which is highly commoditized, vulnerability to the input price fluctuations and low entry barriers for the industry. The ratings draw comfort from WNEL's diversified clientele as well as from its comfortable operating EBITDA margins of 12.54% (FY09: 15.33%) and net profit margins of 4.3% in FY10. This is attributable to the company's low tax outflow due to fiscal benefits it receives owing to its presence in Baddi, Himachal Pradesh. These fiscal benefits are expected to continue till FY16. Negative rating triggers include a decline in WNEL's operating profitability and/ or any unanticipated debt-led capex and/ or further stretching of its working capital cycle, which would result in a deterioration of the company's financial leverage. Positive rating triggers include a substantial increase in WNEL's revenue growth along with a sustained improvement in its profitability and financial leverage. WNEL is a 100% subsidiary of Raglan, which has extended a corporate guarantee of INR262.8m and given unsecured loans of INR167.8m to it. WNEL started its commercial operations in FY07 to manufacture PP and PU/PVC synthetic leather. Total production capacity is 4,590 MT/annum of PP and 6 million metres/annum of PU/PVC synthetic leather. In FY10, WNEL reported revenues of INR248m (FY09: 182.2m) and an EBITDA margin of 12.54% (FY09: 15.33%). ========= K O R E A ========= HYUNDAI ENGINEERING: Creditors Set November 12 Bid Deadline ----------------------------------------------------------- Sookyung Seo at Bloomberg News reports that Hyundai Engineering & Construction Co. creditors set a Nov. 12 deadline for the submission of main bids in buying a stake worth US$2.3 billion in South Korea's biggest builder. In a public notice in newspapers on Friday, Bloomberg relates, sale arrangers Bank of America Corp.'s Merrill Lynch & Co., Woori Investment & Securities Co. and Korea Development Bank said the creditors will accept preliminary bids for their 35 percent stake by Oct. 1, 2010. Bloomberg notes that Hyundai Group has said it plans to bid for a stake in the builder which was its predecessor's flagship before falling into the hands of creditors in 2001. Bloomberg, citing The Wall Street Journal, further notes that Hyundai Motor Group, also previously part of the old Hyundai Group, may make a rival offer. As reported in the Troubled Company Reporter-Asia Pacific on July 1, 2010, Bloomberg News said Hyundai Engineering's creditors plan to choose a preferred bidder for a KRW2.17 trillion controlling stake in the builder by the end of this year. The debt holders plan to complete the sale, open to both domestic and overseas buyers, by early 2011. About Hyundai Engineering Headquartered in Seoul, South Korea, Hyundai Engineering & Construction Company Limited -- http://www.hdec.co.kr/-- is involved in civil engineering, housing development projects and other contracted construction works in South Korea and internationally. Its operations fall into the following key areas: building, civil works, plant and power works. Within the building and housing section, HDEC is involved in construction and architecture, and has been involved in residential, commercial and institutional building projects. Hyundai Engineering has been under creditors' control. In August 2001, Hyundai Group was split into three -- Hyundai Motor, Hyundai Heavy Industries and one which retained the name, Hyundai Group -- while the remaining businesses were taken over by creditors. =============== M A L A Y S I A =============== LCL CORPORATION: Clasquin (Malaysia) Serves Writ of Summons ----------------------------------------------------------- LCL Trading Sdn Bhd has been served a Writ of Summons and Statement of Claim by Clasquin (Malaysia) Sdn Bhd as a result of default in payments for services and goods rendered and delivered. The Writ of Summons and Statement of Claim was served on LCL Trading on September 20, 2010. Clasquin (Malaysia) claims MYR407,442.31 is due and owing as at April 28, 2010, at an interest rate of 8% (from May 13, 2010). LCL will not take any steps in respect of the Writ of Summons. About LCL Corp Based in Malaysia, LCL Corporation Berhad (KUL:LCL) -- http://www.lclgroup.com.my/-- is an investment holding company engaged in the provision of management services to the subsidiaries. It operates in five segments: interior fit-out services, which provides interior fit-out works and services, including project management, design and consultancy, procurement, construction and installation; manufacturing of furniture, which is engaged in the manufacture of customized furniture and fixtures, generic furniture; supply and installation of materials and fittings, which is engaged in the supply and installation of ceiling materials, metal fittings and fixtures and stone materials; trading of furniture and building materials, including interior fit-out materials, and others, which comprises investment holding and/or property development activities of the Company and certain subsidiaries. LCL Corp Bhd. has been classified as an Affected Listed Issuer under Practice Note 17 of Bursa Malaysia Securities Berhad as the Company is unable to provide a solvency declaration to Bursa Securities following a default in its loan payments pursuant to Practice Note 1/2001. LCL CORPORATION: Sells 40% Stake in Sunway Interiors for MYR4,000 ----------------------------------------------------------------- LCL Corporation Berhad on September 21, 2010, disposed 4,000 ordinary shares of MYR1.00 each, representing 40% equity interest in Sunway Interiors Sdn Bhd (formerly known as Sunway-LCL Interiors Sdn Bhd) to Sunway Construction Sdn Bhd, a wholly-owned subsidiary of Sunway Holdings Berhad for a total cash consideration of MYR4,000. About LCL Corp Based in Malaysia, LCL Corporation Berhad (KUL:LCL) -- http://www.lclgroup.com.my/-- is an investment holding company engaged in the provision of management services to the subsidiaries. It operates in five segments: interior fit-out services, which provides interior fit-out works and services, including project management, design and consultancy, procurement, construction and installation; manufacturing of furniture, which is engaged in the manufacture of customized furniture and fixtures, generic furniture; supply and installation of materials and fittings, which is engaged in the supply and installation of ceiling materials, metal fittings and fixtures and stone materials; trading of furniture and building materials, including interior fit-out materials, and others, which comprises investment holding and/or property development activities of the Company and certain subsidiaries. LCL Corp Bhd. has been classified as an Affected Listed Issuer under Practice Note 17 of Bursa Malaysia Securities Berhad as the Company is unable to provide a solvency declaration to Bursa Securities following a default in its loan payments pursuant to Practice Note 1/2001. KENMARK INDUSTRIAL: Gets Summons From FedEx for MYR35,329 Claim --------------------------------------------------------------- Kenmark Industrial Co. (M) Berhad on September 21, 2010, has been served with a Summons and Statement of Claim by Federal Express Services (M) Sdn Bhd for the total outstanding invoices of MYR35,329.16 for the services rendered to the Company. Pursuant to Section 226(3) of the Companies Act 1965, Kenmark said Federal Express can only proceed by leave of the Court and in accordance with terms the Court imposes. About Kenmark Industrial Kenmark Industrial Co. (M) Berhad is a Malaysia-based company. The Company is engaged in the manufacturing of computer workstations, cabinets, furniture; printing of packaging materials; the distribution of consumer products, and investment holding. The Company is also engaged in plastic injection for furniture parts, and assembly and distribution of liquid crystal display (LCD). It exports its products to the United States, Europe, Japan and Australia. The Company's wholly owned subsidiaries include Kenmark Paper Sdn. Bhd., which is engaged in manufacturing plastic parts for wooden furniture and cabinets, and investment holding; Kenmark (Labuan) Limited, which is engaged in international trading, commission agent and investment holding; Phoenix International Group Limited, which is engaged in trading in electronic devices, and Billion Dynamic Sdn. Bhd., which is engaged in the assembling and trading of electronic devices. * * * Kenmark Industrial Co. (M) Berhad has been classified a Practice Note 17 company based on the criteria set by the Bursa Malaysia Securities Bhd after it triggered Paragraph 2.1(f) of the Listing Requirements. The Company's major subsidiaries have defaulted on some of their banking facilities. The Company is also unable to provide a solvency declaration. SATANG HOLDINGS: Unit Receives Summons From Daya Padu Enterprise ---------------------------------------------------------------- Satang Jaya Sdn Bhd, a wholly-owned subsidiary of Satang Holdings Berhad, has been served with a Writ of Summons and Statement of claim both dated August 25, 2010, by Daya Padu Enterprise. The Writ of Summons and Statements of Claim was received by the Company on Sept. 20, 2010, by way of registered mail from Messrs. Mura Raju & Co., the solicitor of the Plaintiff. Daya Padu Enterprise is claiming for MYR1.676 million in respect of goods and services provided to SJSB from the years 2006 to 2009 with the interest of 8% p.a. charged from May 6, 2010. The filing of the Writ of Summons is a result of the alleged default in payment of goods and services provided to SJSB. Satang told the bourse that the Writ of Summons will not have any additional financial and operational impact on the Group for the financial year ending Sept. 30, 2010. Satang said it will seek the necessary legal advice from its solicitors with regards to the claim and will instruct its solicitors to defend the claim. About Satang Holdings Satang Holdings Berhad, formerly Satang Jaya Holdings Berhad, is engaged in the maintenance, repair and overhaul of aviation and safety equipment and operations and principally in Malaysia. Through its subsidiaries, the company is also engaged in the supply and distribution of environmental products, providing training and seminar in respect of environmental management system and other related services; providing consultancy and solution services and implementing of high-technology and surveillance security systems and its related services; supplying and servicing of pipe cleaning products and equipment, and supplying and maintenance of marine safety and survival equipment and accessories. Its subsidiaries include Satang Environmental Sdn. Bhd., Satang Cylinder Services Sdn. Bhd., SAR Services (M) Sdn. Bhd., Satang Hi-Tech Security Sdn. Bhd., Satsang-ICS global Sdn Bhd. and Port Marine Safety Services Sdn. Bhd. * * * As reported by the Troubled Company Reporter-Asia Pacific on May 13, 2008, the company triggered Paragraph 2.1 of the Amended Practice Note 17/2005 as its independent auditor, Anuarul Azizan Chew & Co., has concluded in its Audit Investigative Reports that out of the MYR39.27 million alleged overstated revenue of the company, MYR35.43 million represents invalid sales which should not be recorded in the books for the financial year ended September 30, 2007. ==================== N E W Z E A L A N D ==================== SOUTH CANTERBURY: Trustee to Repay 30,000 Depositors This Week -------------------------------------------------------------- About 30,000 debenture holders and depositors in South Canterbury Finance might be repaid this week, after several thousand SCF bondholders were repaid $350 million on September 23, Marta Steeman at BusinessDay.co.nz reports. According to the report, Trustee Executors, acting on behalf of the investors, said the bondholders' 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 relates Yogesh Mody, the regional manager for Trustee Executors, said that when SCF was placed in receivership the trustee had said it would work towards full repayment in four to six weeks. BusinessDay.co.nz says the trustee had been working on the migration of the debenture and deposit registry from SCF to Computershare Investor Services, as paying agent for the Crown, as well as auditing the registers. Mr. Mody said it was working through the last stages of those audits. "We expect to make an announcement on repayment for both debenture and deposit holders next week." 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. ================= S I N G A P O R E ================= ACE FAMILY: Creditors' Proofs of Debt Due October 8 --------------------------------------------------- Creditors of Ace Family Lifestyle (S) Pte Ltd, 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: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road, #06-11 Singapore 069118 AGIO COUNTERTRADE: Creditors Get 0.04433% Recovery on Claims ------------------------------------------------------------ Agio Countertrade Pte Ltd declared the first and final dividend on September 16, 2010. The company paid 0.04433% to the received claims. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road, #06-11 Singapore 069118 BEAUTY SAINT: Court Enters Wind-Up Order ---------------------------------------- The High Court of Singapore entered an order on September 17, 2010, to wind up the operations of Beauty Saint Pte Ltd. HSBC Institutional Trust Services (Singapore) Limited as trustee of Suntec Real Estate Investment Trust, filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road, #06-11 Singapore 069118 CALL CENTRE: Creditors' Proofs of Debt Due October 4 ---------------------------------------------------- Creditors of Call Centre One Pte Ltd, which is in liquidation, are required to file their proofs of debt by October 4, 2010, to be included in the company's dividend distribution. The company's liquidator is: Mr. Don M Ho Certified Public Accountants Corporate Advisory & Recoveries Equity Plaza 20 Cecil Street #12-02 Singapore 049705 CITILINK HOLDINGS: Court to Hear Wind-Up Petition on October 1 -------------------------------------------------------------- A petition to wind up the operations of Citilink Holdings Pte Ltd will be heard before the High Court of Singapore on October 1, 2010, at 10:00 a.m. HSBC Institutional Trust Services (Singapore) Limited as trustee of Suntec Real Estate Investment Trust, filed the petition against the company on September 9, 2010. The Petitioner's solicitors are: Bernard & Rada Law Corporation 143 Cecil Street #18-00 GB Building Singapore 069542 EASTLINK SHIPBROKING: Court to Hear Wind-Up Petition on October 1 ----------------------------------------------------------------- A petition to wind up the operations of Eastlink Shipbroking Pte Ltd will be heard before the High Court of Singapore on October 1, 2010, at 10:00 a.m. Patrick Khoo Eng Hock filed the petition against the company on September 8, 2010. The Petitioner's solicitors are: Rajah & Tann Llp 9 Battery Road #25-01 Straits Trading Building Singapore 049910 PRITSONS (S): Creditors Get 0.09038% Recovery on Claims ------------------------------------------------------- Pritsons (S) Pte Ltd declared the first and final dividend on September 20, 2010. The company paid 0.09038% to the received claims. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road, #06-11 Singapore 069118 ================ S R I L A N K A ================ SRI LANKA TELECOM: Fitch Affirms Issuer Default Rating at 'B+' -------------------------------------------------------------- Fitch Ratings has affirmed Sri Lanka Telecom Plc's foreign currency issuer default rating at 'B+' and revised its Outlook to Positive from Stable. The agency has simultaneously affirmed SLT's local currency IDR at 'BB-' and revised its Outlook to Stable from Negative. SLT's National Long-term rating has been affirmed at 'AAA(lka)' with a Stable Outlook. The revision of the Outlook on SLT's 'B+' foreign currency IDR reflects a similar change to the Outlook of Sri Lanka's foreign currency IDR on September 21, 2010, as SLT's stand-alone credit profile is constrained by the sovereign. The revision of the Outlook on SLT's LC IDR to Stable from Negative is based on improvements observed in Sri Lanka's macroeconomic conditions following the end of the civil war, and from a moderation of the heavy price-based competition among telecom operators after regulatory intervention on tariffs. These are expected to stem the fall in SLT's operating margins. SLT's ratings continue to reflect its established position as an integrated telecom operator with strong market shares in major operating segments backed by strong infrastructure. Although profitability has suffered since 2007 - EBITDA to sales has fallen to around 30% at present from 45% in 2007 - SLT continues to generate a significant amount of cash from operations. Its financial leverage and coverage ratios (adjusted debt net of cash to operating EBITDAR of 0.2x and fund flow from operations to interest of 11.0x at June 2010, respectively) remain extremely strong for its ratings, although Fitch expects SLT to generate weak to negative free cash flows until 2011, mainly due to ongoing high capex associated with the transition to a next-generation network and mobile operations. Despite the weak to negative free cash generation in the next 18 to 24 months, Fitch expects SLT to maintain its financial leverage below 1.0x and strong interest coverage with significant rating- headroom under its current ratings. SLT is yet to fully secure external funding for its capex programme; however, given its strong access to the bank loan market, Fitch does not expect capex funding or liquidity to be an issue. Positive or negative rating actions will be taken on SLT's FC IDR, or on its Outlook, based on similar rating actions on Sri Lanka's foreign currency rating. A positive rating action on SLT's LC IDR is not expected in the next 12 to 18 months. A negative rating action can be taken on the FC IDR and LC IDR if SLT's leverage is sustained above 2.5x and 1.5x, respectively. Sustained negative free cash generation beyond 2011 can also negatively affect its ratings, particularly the LC IDR. ********* 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 ***