/raid1/www/Hosts/bankrupt/TCRAP_Public/101124.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
Wednesday, November 24, 2010, Vol. 13, No. 232
Headlines
A U S T R A L I A
FOREST ENTERPRISES: Creditors Give More Time to Save Firm
PAINAWAY AUSTRALIA: PBB Places Firm Up For Sale
QUICK RESPONSE: In Administration; Business Up For Sale
C H I N A
CHINA RENEWABLE: Earns US$39,435 in September 30 Quarter
MASTER SILICON: Earns US$481,000 in September 30 Quarter
SHANGHAI ZENDAI: S&P Affirms 'B' LT Corporate Credit Rating
H O N G K O N G
BAOSHINN CORPORATION: Earns US$17,173 in September 30 Quarter
DOTEX COMPANY: Court Enters Wind-Up Order
DRANSFIELD HOLDINGS: First Meetings Slated for November 30
EMPIRE ONE: Court Enters Wind-Up Order
FAVOUR CENTURY: Court to Hear Wind-Up Petition on December 29
GOBOWAY INVESTMENT: Court Enters Wind-Up Order
GOLD ACT: Court Enters Wind-Up Order
GRAND PASTURES: Court Enters Wind-Up Order
GREAT & RICH: Court Enters Wind-Up Order
INCLINE BEAUTY: Court Enters Wind-Up Order
INCORPORATED OWNERS: Court to Hear Wind-Up Petition on December 22
INTERSMART INTERNATIONAL: Court Enters Wind-Up Order
JET WIN: Court Enters Wind-Up Order
KONG LAI: Court Enters Wind-Up Order
LABOUR BUILDINGS: Court Enters Wind-Up Order
LI FUNG: Court Enters Wind-Up Order
LUEN TAT: Keung and Wai Appointed as Liquidators
MAN FOOK: Court Enters Wind-Up Order
MAN WAH: Court Enters Wind-Up Order
MARCHPOLE GROUP: Court Enters Wind-Up Order
MOKKERHATIN ENGINEERING: Court Enters Wind-Up Order
I N D I A
AMIYA STEEL: CRISIL Reaffirms 'B' Rating on INR80.73MM Term Loan
ARUNODAY CONSTRUCTION: CRISIL Reaffirms 'D' Rating on Term Loan
BORIAVI PEOPLE'S: RBI Cancels License Due to Insolvency
GOYAL ENERGY: Fitch Assigns 'B+' Ratings to Two Classes of Loans
GROVER VINEYARDS: CRISIL Reaffirms 'D' Rating on INR55MM LT Loan
INDO SHELL: ICRA to Withdraw "LBB" Rating on INR6cr Bank Loans
MEDI PHARMA: CRISIL Reaffirms 'BB+' Rating on INR150MM Cash Credit
MOHIT DIAMONDS: CRISIL Reaffirms 'P4+' Ratings on Various Loans
PREET MACHINES: ICRA Assigns 'LBB' Rating to INR18cr Bank Debt
QRS RETAIL: CRISIL Assigns 'BB' Rating to INR70 Million LT Loan
RAIN CII: Fitch Puts 'B' Rating on Rating Watch Negative
RAHUL AGRO: ICRA Assigns 'LBB-' Rating to INR7cr Long Term Loan
RATNACHINTAMANI METALLOYS: CRISIL Puts 'B' Rating on INR59MM Loan
SAMOSARAN YARNS: CRISIL Assigns 'BB' Rating to INR137.5MM LT Loan
STERLING TECHNOTEX: CRISIL Assigns 'D' Rating to INR89.2MM Loan
SUPREME COATED: CRISIL Assigns 'BB' Rating to INR114.5MM LT Loan
VENUS LIFESTYLES: ICRA Assigns 'LBB+' Rating to INR30cr Bank Debt
I N D O N E S I A
MNC SKY: Moody's Assigns 'B2' Rating to US$165 Million Notes
VALLAR PLC: Moody's Comments on Berau Coal and Bumi Rating Impact
J A P A N
CHELSEA TRUST: Moody's Downgrades Rating on Various Certificates
JAPAN AIRLINES: Creditors Back Rehabilitation Plan
TITAN JAPAN: Fitch Downgrades Ratings on Four Classes of Notes
* S&P Raises Ratings on Five Tranches From Five Japanese CDOs
K O R E A
HYUNDAI ENGINEERING: Hyundai Group's Funding Plan Not Under Review
M A L A Y S I A
GENERAL CORPORATION: Appoints Ernst & Young as Liquidator
HOVID BERHAD: 30th Annual General Meeting Set for December 15
TRANSMILE GROUP: CCM Strikes Off Thailand Unit From Register
N E W Z E A L A N D
CAFE CUBA: Faces Liquidation Over NZ$300,000 Unpaid GST
P H I L I P P I N E S
PHILIPPINE AIRLINES: Reports US$28.2 Mil. Net Income in Sept. Qtr.
S I N G A P O R E
TRANSFIELD ER: Seeks Protection From Suits in the U.S.
T A I W A N
AMERICAN INT'L: Rules Out Listing Nan Shan in Taiwan Bourse
T H A I A N D
KRUNG THAI: Fitch Affirms Individual Rating at 'C/D'
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A U S T R A L I A
=================
FOREST ENTERPRISES: Creditors Give More Time to Save Firm
---------------------------------------------------------
The creditors of Forest Enterprises Australia's plantation arm
have given administrators more time to save the company, ABC News
reports.
As reported in the Troubled Company Reporter-Asia Pacific on
April 15, 2010, Forest Enterprises has been placed into voluntary
administration. "FEA's financiers, namely the Commonwealth Bank
of Australia Ltd and the Australia and New Zealand Banking Group
Ltd have provided a formal notice, via their Security Trustee, to
FEA and relevant FEA guarantor companies," the FEA said in a
statement to the Australian Securities Exchange. "The Banks have
elected to take action, relying on the event of default previously
advised to the market and as a result, each of the charges granted
to the Security Trustee are enforceable and the previous floating
charges over all of FEA's assets have converted into fixed
charges. "As a result, the Company is now required to deposit the
proceeds of realization of any charged assets into a separate bank
account for the sole benefit of the Banks.
According to ABC News, Administrator Brian Silvia has told
plantation creditors there is a good prospect of restructuring the
schemes to make them viable. ABC News relates that creditors
voted for a "holding" arrangement, where administrators are given
more time to work on the restructure plans.
FEA's parent company is being managed by bank-appointed receivers,
which sold the company's Bell Bay sawmill to Gunns last month, ABC
News adds.
About FEA
Forest Enterprises Australia Limited (ASX:FEA) --
http://www.fealtd.com/-- is a vertically integrated forestry and
forest products company. It is engaged in the sale of woodlot
investments through forestry investments; preparation,
establishment and maintenance of plantations; timber harvesting;
provision of finance to approved growers; sawmilling and wood
chipping of forest produce, and direct exporting of forest produce
to Asian markets. FEA operates in two divisions: forest products,
which includes forest management services and the processing of
forest products, including whole logs, woodchips and sawn timber,
and forestry investment, which includes establishment and
financing of managed woodlots and provision of related forestry
services, including the lease of investment land. Its wholly
owned subsidiaries include FEA Plantations Limited, FEA Carbon Pty
Ltd, Tasmanian Plantation Pty Ltd, Tasmanian Plantation Unit Trust
and FEA Timberlands Fund.
Deloitte partners Tim Norman and Sal Algeri have been appointed as
Receivers and Managers of Forest Enterprises Australia Limited and
wholly owned subsidiary FEA Carbon Pty Ltd (FEAC). Messrs. Norman
and Algeri have also been appointed as 'agents for the mortagee in
possession' of Tasmanian Plantations Pty Ltd, another wholly owned
property holding subsidiary of FEA.
PAINAWAY AUSTRALIA: PBB Places Firm Up For Sale
-----------------------------------------------
Insolvency firm PPB has placed Painaway Australia Pty Ltd up for
sale, after it was placed into liquidation on November 11, 2010,
James Thomson at SmartCompany reports.
Painaway Australia Pty Ltd -- http://www.painaway.com.au/--
manufactures health products, including variety of creams and
sprays for the relief of arthritis pain.
QUICK RESPONSE: In Administration; Business Up For Sale
-------------------------------------------------------
James Thomson at Smart Company reports that insolvency firm
Ferrier Hodgson announced Tuesday the sale of Quick Response
Fabrics Pty Ltd, which was placed into the hands of administrators
on November 18.
Quick Response Fabrics Pty Ltd -- http://www.qrf.com.au/-- is a
privately owned Australian company located in Melbourne. The
company has annual revenue of AU$4 million and is one of the
suppliers of fabrics to garment manufacturers, fashion houses and
major retailers in Australia, Europe and Asia Pacific.
=========
C H I N A
=========
CHINA RENEWABLE: Earns US$39,435 in September 30 Quarter
--------------------------------------------------------
China Renewable Energy Holdings, Inc., filed its quarterly
report on Form 10-Q, reporting net income of $39,435 on
$1.30 million of revenue for the three months ended September 30,
2010, compared with a net loss of $83,794 on $89,197 of revenue
for the same period of 2009.
The Company's balance sheet as of September 30, 2010, showed
$1.36 million in total assets, $1.54 million in total liabilities,
and a stockholders' deficit of $182,454.
De Leon & Company, P.A., in Pembroke Pines, Fla., expressed
substantial doubt about the Company's ability to continue as a
going concern, following the Company's 2009 results. The
independent auditors noted that the Company has suffered recurring
losses from operations, net capital deficiencies, and negative
cash flows from operations.
A full-text copy of the Form 10-Q is available for free at
http://researcharchives.com/t/s?6f5a
China Renewable Energy Holdings, Inc., was incorporated under the
laws of the State of Florida on December 17, 1999. The Company
was originally organized to provide business services and
financing to emerging growth entities, and later redirected its
business focus to market and to distribute energy-efficient
products in China. In view of the growing concerns regarding
bisphenol A ("BPA") leaching by the PC materials, the Company
visions a market for PC and clear ABS (CABS) substitutes emerging
for industries such as toys and food packaging. Starting in early
2009, the Company invested in formulating new resin products for
the replacement of the more traditional CABS and PC materials.
BPA is an organic compound with two phenol functional groups used
to make polycarbonate plastic and epoxy resins, along with other
applications.
MASTER SILICON: Earns US$481,000 in September 30 Quarter
--------------------------------------------------------
Master Silicon Carbide Industries, Inc., filed its quarterly
report on Form 10-Q, reporting net income of $480,971 on
$3.70 million of revenue for the three months ended September 30,
2010, compared with a net loss of $361,769 on $377,897 of revenue
for the same period of 2009.
The Company had an accumulated deficit of $6.48 million as of
September 30, 2010.
The Company's balance sheet as of September 30, 2010, showed
$26.78 million in total assets, $8.62 million in total
liabilities, $9.86 million in Redeemable Preferred Stock-A, $10.00
million in Redeemable Preferred Stock-B, and a stockholders'
deficit of $1.70 million.
Child, Van Wagoner & Bradshaw, PLLC, in Salt Lake City, expressed
substantial doubt about the Company's ability to continue as a
going concern, following the Company's 2009 results. The
independent auditors noted that the Company has cash flow
constraints, an accumulated deficit, and has suffered recurring
losses from operations.
A full-text copy of the Form 10-Q is available for free at
http://researcharchives.com/t/s?6f59
Lakeville, Conn.-based Master Silicon Carbide Industries, Inc.,
through its indirectly wholly-owned operating subsidiary Yili
China, produces and sells in China high quality "green" silicon
carbide and lower-quality "black" silicon carbide (together,
hereinafter referred to as "SiC"). SiC is a non-metallic
compound that has special chemical properties and a level of
hardness that is similar to diamonds, is produced by smelting
quartz sand and refinery coke at temperatures ranging from
approximately 1,600 to 2,500 degrees centigrade in a graphite
electric resistance furnace.
SHANGHAI ZENDAI: S&P Affirms 'B' LT Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit rating on Shanghai Zendai Property Ltd. The
outlook on the rating is negative. At the same time, S&P lowered
the issue rating on the company's senior notes to 'B-' from 'B'.
All ratings have been removed from CreditWatch, where they had
been placed with negative implications on Feb. 3, 2010.
S&P affirmed the rating on Shanghai Zendai following the company's
recent full settlement of the outstanding land premium for a
project on Shanghai Bund. The payment has removed the uncertainty
over the company's liquidity and financial positions.
Nevertheless, S&P believes the rating will continue to be under
pressure because S&P anticipate that the company's credit ratios
will remain weak due to increased borrowings, the possibility of
additional capital contributions to the Shanghai Bund project, and
large refinancing needs in 18 months.
S&P lowered the issue rating on the company's senior notes to
reflect structural subordination risks. The company's priority
borrowings over its total assets as at June 30, 2010, exceeded
S&P's notching threshold of 15% for speculative-grade debts. S&P
expects this ratio to remain above the threshold in 2011.
"S&P believes Shanghai Zendai's credit ratios for 2010 and 2011
will likely be weak for the rating. S&P estimate that the
company's total borrowings will have increased substantially by
the end of 2010 from the previous year, even if the loans from an
associate company to fund the majority of the Shanghai Bund land
premium were excluded," said Standard & Poor's credit analyst
Christopher Lee. "S&P does not expect the project to produce
meaningful cash flows for the company during its development
period over the next few years."
"The rating on Shanghai Zendai reflects the company's aggressive
risk appetite, its small scale and limited number of projects, and
increasing exposure to the capital-intensive and long pay-back
commercial leasing properties," said Mr. Lee. "The company's
small, albeit recurring, property leasing income, and an
established track record in Shanghai temper these weaknesses."
The negative outlook reflects S&P's expectations that Shanghai
Zendai's credit ratios will remain weak for the rating due to
increased borrowings to fund the Shanghai Bund project and the
possibility that the project will require capital injections if
there is a shortfall in funding. Further, S&P considers the
company's liquidity to be less than adequate and believe liquidity
is sensitive to any material property market downturn.
================
H O N G K O N G
================
BAOSHINN CORPORATION: Earns US$17,173 in September 30 Quarter
-------------------------------------------------------------
Baoshinn Corporation filed its quarterly report on Form 10-Q,
reporting net income of $17,173 on $8.56 million of revenue for
the three months ended September 30, 2010, compared with net
income of $20,880 on $6.65 million of revenue for the same period
of 2009.
The Company has an accumulated deficit of $1.15 million as of
September 30, 2010.
The Company's balance sheet as of September 30, 2010, showed
$2.51 million in total assets, $1.62 million in total liabilities,
and stockholders' equity of $891,217.
As reported in the Troubled Company Reporter on April 8, 2010,
Dominic K.F. Chan & Co., in Hong Kong, expressed substantial doubt
about the Company's ability to continue as a going concern. The
independent auditors noted of the Company's accumulated losses.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6f3f
About Baoshinn Corporation
Based in Kowloon, Hong Kong, Baoshinn Corporation, through its
Hong Kong subsidiary, is a ticket consolidator of major
international airlines. The Company provides travel services such
as ticketing, hotel and accommodation arrangements, tour packages,
incentive tours and group sightseeing.
DOTEX COMPANY: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on October 14, 2010,
to wind up the operations of Dotex Company Limited.
The company's liquidators are Ho Man Kit Horace and Kong Sze Man
Simone.
DRANSFIELD HOLDINGS: First Meetings Slated for November 30
----------------------------------------------------------
Contributories and creditors of Dransfield Holdings Limited will
hold a meetings on November 30, 2010, at 10:00 a.m., and
11:00 a.m., respectively at 6/F., 88 Lockhart Road, Wanchai, in
Hong Kong.
At the meeting, Kenny King Ching Tam, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
EMPIRE ONE: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on November 5, 2010,
to wind up the operations of Empire One Trading Limited.
The company's liquidator is:
Mat Ng
c/o John Lees Associates
20/F Henley Building
5 Queen's Road
Central, Hong Kong
FAVOUR CENTURY: Court to Hear Wind-Up Petition on December 29
-------------------------------------------------------------
A petition to wind up the operations of Favour Century Limited
will be heard before the High Court of Hong Kong on December 29,
2010, at 9:30 a.m.
Good Joy Consultants Limited filed the petition against the
company.
The Petitioner's Solicitors are:
Fung, Wong, Ng & Lam
Room 48, 4/F, New Henry House
10 Ice House Street
Central, Hong Kong
GOBOWAY INVESTMENT: Court Enters Wind-Up Order
----------------------------------------------
The High Court of Hong Kong entered an order on October 29, 2010,
to wind up the operations of Goboway Investment Limited.
The company's liquidator is Bruno Arboit.
GOLD ACT: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on November 5, 2010,
to wind up the operations of Gold Act Investment Limited.
The company's liquidator is:
Mat Ng
c/o John Lees Associates
20/F Henley Building
5 Queen's Road
Central, Hong Kong
GRAND PASTURES: Court Enters Wind-Up Order
------------------------------------------
The High Court of Hong Kong entered an order on October 29, 2010,
to wind up the operations of Grand Pastures Limited.
The company's liquidators are Ho Man Kit Horace and Kong Sau Wai.
GREAT & RICH: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order on January 26, 2010,
to wind up the operations of Great & Rich Investment Limited.
The company's liquidator is Bruno Arboit.
INCLINE BEAUTY: Court Enters Wind-Up Order
------------------------------------------
The High Court of Hong Kong entered an order on October 21, 2010,
to wind up the operations of Incline Beauty Global Limited.
The company's liquidator is Yuen Tsz Chun Frank.
INCORPORATED OWNERS: Court to Hear Wind-Up Petition on December 22
------------------------------------------------------------------
A petition to wind up the operations of The Incorporated Owners of
Kin Yu Mansion will be heard before the High Court of Hong Kong on
December 22, 2010, at 9:30 a.m.
Universal Sight Limited filed the petition against the company.
The Petitioner's Solicitors are:
Mayer Brown JSM
18th Floor, Price's Building
10 Chater Road
Central, Hong Kong
INTERSMART INTERNATIONAL: Court Enters Wind-Up Order
----------------------------------------------------
The High Court of Hong Kong entered an order on November 10, 2010,
to wind up the operations of Intersmart International Limited.
The official receiver is E T O'connell.
JET WIN: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on February 18, 2010,
to wind up the operations of Jet Win Logistices Limited.
The company's liquidator is Bruno Arboit.
KONG LAI: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on November 10, 2010,
to wind up the operations of Kong Lai Restaurant Limited.
The official receiver is E T O'Connell.
LABOUR BUILDINGS: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on October 14, 2010,
to wind up the operations of Labour Buildings Limited.
The company's liquidators are Ho Man Kit Horace and Kong Sau Wai.
LI FUNG: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on October 29, 2010,
to wind up the operations of Li Fung Housewares Co., Limited (now
known as Airnet Co., Limited).
The company's liquidator is:
Mat Ng
c/o John Lees Associates
20/F Henley Building
5 Queen's Road
Central, Hong Kong
LUEN TAT: Keung and Wai Appointed as Liquidators
------------------------------------------------
Mr. Stephen Liu Yiu Keung and Mr. David Yen Ching Wai on
October 13, 2010, were appointed as liquidators of Luen Tat Watch
Band Manufacturer Limited.
The liquidators may be reached at:
Mr. Stephen Liu Yiu Keung
Mr. David Yen Ching Wai
62/F One Island East
18 Westlands Road
Island East, Hong Kong
MAN FOOK: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on October 15, 2010,
to wind up the operations of Man Fook Leather Company Limited.
The company's liquidators are Ho Man Kit Horace and Kong Sze Man
Simone.
MAN WAH: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on October 13, 2010,
to wind up the operations of Man Wah (Hong Kong China) Limited.
The company's liquidator is Bruno Arboit.
MARCHPOLE GROUP: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on November 2, 2010,
to wind up the operations of Marchpole Group Limited.
The company's liquidator is Yuen Tsz Chun Frank.
MOKKERHATIN ENGINEERING: Court Enters Wind-Up Order
---------------------------------------------------
The High Court of Hong Kong entered an order on September 30,
2010, to wind up the operations of Mokkerhatin Engineering
Limited.
The company's liquidator is Yuen Tsz Chun Frank.
=========
I N D I A
=========
AMIYA STEEL: CRISIL Reaffirms 'B' Rating on INR80.73MM Term Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Amiya Steel Pvt Ltd
continue to reflect ASPL's weak financial risk profile, marked by
small net worth, high gearing, and weak debt protection metrics,
marginal market share in the sponge iron business, and its
exposure to economic downturns in the steel industry. These
weaknesses are partially offset by ASPL's moderate operating
efficiency, on account of its proximity to customers.
Facilities Ratings
---------- -------
INR127 Million Cash Credit Limits B/Stable (Reaffirmed)
INR80.73 Million Term Loan B/Stable (Reaffirmed)
INR8.4 Million Bank Guarantee P4 (Reaffirmed)
Outlook: Stable
CRISIL believes that ASPL's financial risk profile will remain
constrained by its small scale of operations and low cash
accruals. The outlook may be revised to 'Positive' if ASPL's
profitability and net worth improve substantially. Conversely,
the outlook may be revised to 'Negative' if ASPL's operating
margin declines because of low capacity utilization, or if the
company undertakes any additional, large, debt-funded capital
expenditure programme.
About Amiya Steel
Set up in 2002, by Mr. Amiya Kumar Mondal and family, ASPL
manufactures sponge iron. The company's manufacturing facility at
Bankura (West Bengal) has a capacity to produce 60,000 tonnes of
sponge iron per annum.
ASPL reported a profit after tax (PAT) of INR8 million on net
sales of INR338 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR10 million on net sales
of INR352 million for 2008-09.
ARUNODAY CONSTRUCTION: CRISIL Reaffirms 'D' Rating on Term Loan
---------------------------------------------------------------
CRISIL's ratings on Arunoday Construction Company Pvt Ltd's bank
facilities continue to reflect the delay by ACCPL in servicing its
term loan obligations; the delay has been caused by ACCPL's weak
liquidity.
Facilities Ratings
---------- -------
INR75 Million Cash Credit Limits D (Reaffirmed)
INR13.5 Million Corporate Term Loan D (Reaffirmed)
INR0.3 Million Proposed LT Bank D (Reaffirmed)
Loan Facility
INR5 Million Standby Line of Credit P5 (Reaffirmed)
INR80 Million Bank Guarantee P5 (Reaffirmed)
The rating continues to reflect the small scale of operations of
ACCPL and its low net-worth. ACCPL, however, continues to benefit
from the longstanding presence of its promoters in the
construction industry.
Update
ACCPL's net sales have increased by 58 per cent in 2009-10 (refers
to financial year, April 1 to March 31) over the previous year,
backed primarily by increase in tenders won by the company and
good offtake of railways sleepers during the year. The company's
operating and profit after tax (PAT) margins in 2009-10 have
remained at 2008-09 levels. ACCPL's liquidity remains weak, with
average month ending bank limit utilization of around 81 per cent
during the period between September 2009 and October 2010. The
company, at instances, has delayed on servicing of its term loan
obligations in the past 12 months through October 2010 primarily
on account of delays in receipt of payment from its customers.
For 2009-10, ACCPL, on a provisional basis, reported a profit
after tax (PAT) of INR11.6 million on net sales of INR558.2
million, as against a PAT INR6.83 million on net sales of INR354.3
million for the preceding year.
About Arunoday Construction
Set up by Mr. Om Prakash Lahoty in 1980, ACCPL has been
manufacturing concrete sleepers, used in railway tracks, since
1984. The key raw materials involved in the process are cement,
High Temperature Superconductor (HTS) wires, inserts, and chips.
The company's manufacturing facility at Jagiroad (Assam) has a
capacity to produce around 60,000 sleepers per annum. ACCPL is
also involved in building construction activities in Assam.
BORIAVI PEOPLE'S: RBI Cancels License Due to Insolvency
-------------------------------------------------------
The Reserve Bank of India has cancelled the license of the Boriavi
People's Co-operative Bank Ltd. as the bank had ceased to be
solvent and all efforts to revive had failed.
"The order of cancellation of the license was given after the
close of business on November 19, 2010," RBI said in a statement.
The Reserve Bank has also requested the Registrar of Co-operative
Societies, Gujarat to issue an order for winding up the bank and
appoint a liquidator.
Consequent to the cancellation of its licence, The Boriavi
People's Co-operative Bank Ltd. is prohibited from carrying on
'banking business' as defined in Section 5(b) of the Banking
Regulation Act, 1949 (AACS) including acceptance and repayment of
deposits.
With the cancellation of license and commencement of liquidation
proceedings, the process of paying the depositors of The Boriavi
People's Co-operative Bank Ltd. will be set in motion subject to
the terms and conditions of the Deposit Insurance Scheme. On
liquidation, every depositor is entitled to repayment of his/her
deposits up to a monetary ceiling of 1,00,000/- (Rupees One lakh
only) from the Deposit Insurance and Credit Guarantee Corporation
(DICGC) under usual terms and conditions.
For any clarifications, depositors may approach Shri C N Modi,
Assistant General Manager, Urban Banks Department, Reserve Bank of
India, Ahmedabad.
Modi may be reached at:
Urban Banks Department
Reserve Bank of India
Ahmedabad Regional Office
La Gajjar Chambers
Ashram Road, Ahmedabad-380009
Tel: (079) 26589338
Fax: (079) 26584853
Background
The Reserve Bank had given a license to The Boriavi People's Co-
operative Bank Ltd., Boriavi, Gujarat in December 1986. The
statutory inspection of the bank with reference to its financial
position as on March 31, 2008, assessed the Capital to Risk
Weighted Assets Ratio (CRAR) at (-) 17.9%, negative networth at
(-) 67.40 lakh, erosion in deposits to the extent of 8.1%. The
bank's financial position deteriorated sharply as on March 31,
2009, wiping out its owned funds. Its deposits were also eroded to
the extent of 22.2%.
Due to its precarious financial position, the bank was placed
under directions under Section 35 A of the Banking Regulation Act,
1949 (As Applicable to Cooperative Societies) on September 17,
2009. The subsequent inspection of the bank with reference to its
financial position as on March 31, 2010, revealed that the
financial position of the bank was not sound. The bank also did
not comply with the provisions of Section 11(1), 22(3) (a) and (b)
of the Banking Regulation Act, 1949 (As Applicable to Cooperative
Societies).
In the absence of any concrete/viable revival plan/ merger
proposal for turnaround and means to achieve the required
regulatory prescriptions, the possibility of revival of the bank
was remote. Therefore, the Reserve Bank of India took the extreme
measure of cancelling licence of the bank in the interest of
bank's depositors.
GOYAL ENERGY: Fitch Assigns 'B+' Ratings to Two Classes of Loans
----------------------------------------------------------------
Fitch Ratings has assigned India's Goyal Energy & Steel Pvt. Ltd.
a 'B+(ind)' National Long-term rating with a Stable Outlook. The
agency has also assigned ratings to GESPL's bank loans:
-- INR51 million long-term loans: 'B+(ind)';
-- INR245 million fund-based loans: 'B+(ind)'.
The ratings are constrained by GESPL's relatively small scale of
operations in the domestic steel industry, its weak credit metrics
(FY10 net leverage: 9.4x) and price volatility of raw materials.
The ratings are also constrained by low operating margins, and by
lack of adequate fund-based limits required for the operations of
a recently completed ingot manufacturing facility.
GESPL's ratings benefit from its 'approved-unit' status from Power
Grid Corporation India Limited; it makes more than 50% of its
sales to PGCIL's suppliers, which has helped it maintain
consistently high capacity plant utilization (FY10: 90%).
Positive rating triggers include high capacity utilization of the
rolling mill/ingot plants and sustained improvement in operating
margins along with net leverage below 8x. Negative rating
triggers include a further deterioration in net leverage and
operating margins.
GESPL's revenues rose to INR1,160.4 million in FY10 (FY09:
INR947.5 million), although EBITDAR margins fell to 2.44% (FY09:
2.83%) due to raw material price volatility. The company's total
debt increased to INR296.9 million at FYE10 (FYE09: INR227.1
million) from additional loans taken for the recently completed
ingot project. The company reported a negative free cash flow of
INR127.5 million in FY10. Fitch expects FCF to stay negative over
the short-to-medium term due to higher working capital
requirements which will lead to negative cash flows from
operations.
GESPL commenced its manufacturing activities at end-2005 by
setting up a rolling mill plant. It currently has an installed
capacity of 61,000 metric tonne per annum of rolling mill in
Raipur (Chattisgarh), and has recently installed a 30,000 MTPA of
ingot manufacturing facility at this site.
GROVER VINEYARDS: CRISIL Reaffirms 'D' Rating on INR55MM LT Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Grover Vineyards Ltd
continue to reflect delays by GVL in servicing its term loans.
The delays have been caused by GVL's weak liquidity.
Facilities Ratings
---------- -------
INR55.00 Million Long-Term Loan D (Reaffirmed)
INR90.00 Million Open Cash Credit D (Reaffirmed)
INR20.00 Million Short-Term Loan P5 (Reaffirmed)
INR15.00 Million Foreign Bill P5 (Reaffirmed)
Discounting/Foreign Bill Exchange P5 (Reaffirmed)
INR10.00 Million Foreign Letter
of Credit P5 (Reaffirmed)
INR50.00 Million Bank Guarantee P5 (Reaffirmed)
GVL has a weak financial risk profile marked by high gearing and a
small net worth and its business risk profile is constrained by
susceptibility to adverse climatic conditions and adverse
regulatory changes. However, the company benefits from its
promoter's experience in India's wine industry and its well-
established brand Grover.
About Grover Vineyards
GVL (formerly, Grover Vineyards Pvt Ltd) was established in 1988
by Mr. Kanwal Grover and his son, Mr. Kapil Grover, in
Doddaballapur (outskirts of Bengaluru). The company's vineyards
are spread over 400 acres. Its winery has annual production
capacity of 1.195 million bottles of 750 milliliters each. GVL
sells its products under the Grover brand
GVL reported a net loss of INR145 million on net sales of INR196
million for 2009-10 (refers to financial year, April 1 to March
31), against a net loss of INR127 million on net sales of INR136
million for 2008-09.GVL reported a net loss of INR145 million on
net sales of INR196 million for 2009-10 (refers to financial year,
April 1 to March 31), against a net loss of INR127 million on net
sales of INR136 million for 2008-09.
INDO SHELL: ICRA to Withdraw "LBB" Rating on INR6cr Bank Loans
--------------------------------------------------------------
ICRA has placed the "LBB" rating assigned to the INR6.0 crore fund
based bank facilities of Indo Shell Auto Agency Private Limited on
notice for withdrawal at the request of the company. As per
ICRA's policy, the rating will be withdrawn one year after the
date the withdrawal notice is given.
MEDI PHARMA: CRISIL Reaffirms 'BB+' Rating on INR150MM Cash Credit
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of Medi Pharma Drug House
continues to reflect Medi Pharma's below-average financial risk
profile marked by high gearing and weak debt protection metrics,
exposure to risks relating to fluctuations in the prices of drugs
and in the value of the Indian rupee, and the concentration in its
supplies from China. These weaknesses are partially offset by the
benefits that Medi Pharma derives from its established market
position, and its promoters' experience in the bulk drugs trading
business and track record of equity infusion.
Facilities Ratings
---------- -------
INR150.00 Million Cash Credit BB+/Stable (Reaffirmed)
INR450.00 Million Letter of Credit P4+ (Reaffirmed)
Outlook: Stable
CRISIL believes that Medi Pharma will continue to benefit from its
established market position in the bulk drugs trading business,
and longstanding relationships with its vendors; however, the
firm's financial risk profile is likely to remain below average
because of its large working capital requirements. The outlook
may be revised to 'Positive' if the firm's financial risk profile
improves significantly, aided by higher cash accruals and
accretion to reserves, or significant fresh equity infusion.
Conversely, the outlook may be revised to 'Negative' if Medi
Pharma's capital structure deteriorates due to large incremental
working capital requirements or decline in its operating margin.
Update
During 2009-10 (refers to financial year, April 1 to March 31),
Medi Pharma's net sales declined by 13 per cent year-on-year to
INR1.29 billion, after growing by more than 30 per cent year-on-
year in 2008-09 to INR1.49 billion. The exceptionally high sales
achieved by the firm in 2008-09 were driven by the increased
stocking of drugs by Indian traders and a hike in prices during
the year after the Chinese government closed drug-making units in
the run-up to the Olympics due to environmental concerns. Medi
Pharma's profitability remained in line with past years, with its
profit after tax (PAT) margin at less than 1 per cent in 2009-10.
The firm's gearing reduced to 1.8 times as on March 31, 2010, from
2.1 times as on March 31, 2009, due to lower utilization of bank
facilities, as the scale of operations declined. Its debt
protection metrics remained weak, with the ratio of net cash
accruals to total debt at 0.03 times and interest coverage ratio
at 1.3 times.
Medi Pharma reported a PAT of INR12.1 million on net sales of
INR1.29 billion for 2009-10, as against a PAT of INR9.6 million on
net sales of INR1.49 billion for 2008-09.
About Medi Pharma
Medi Pharma, promoted by Mr. Manharlal V Sanghavi, is a Mumbai-
based trader of bulk drugs. The firm sources most of the drugs
from China, and sells them to pharmaceutical companies in India.
MOHIT DIAMONDS: CRISIL Reaffirms 'P4+' Ratings on Various Loans
---------------------------------------------------------------
CRISIL's rating on the short-term bank facilities of Mohit
Diamonds Pvt Ltd (Mohit Diamonds) continues to reflect Mohit
Diamonds' jewellery division's limited track record of servicing
debt in a timely manner, and the company's working-capital-
intensive operations and weak debt protection metrics. These
rating weaknesses are partially offset by Mohit Diamonds' high
operational efficiency, backed by assured supply of rough diamonds
from Diamond Trading Company because of its sightholder status,
and by its promoter's extensive experience in the diamonds
business.
Facilities Ratings
---------- -------
INR419.6 Million Packing Credit P4+
(Enhanced from INR419.2 Million)
INR477.9 Million Post-shipment Facility P4+
(Enhanced from INR460.8 Million)
INR174.0 Million Ad hoc Post-shipment P4+ (Reaffirmed)
and Packing Credit (Reduced from
INR175.7 Million)
Established in 1991, Mohit Diamonds is the flagship company of the
Mohit group. The company has been a DTC sightholder since
inception; the sightholder status is due for renewal in 2011. The
company, headed by Mr. Anoop Mehta, manufactures and exports
polished diamonds, primarily small diamonds. The promoter family
has been in this business since 1916. The company has a presence
across leading diamond consuming markets, such as the US, Japan,
the Middle East, and other countries in Asia. Group company,
Mohit Jewellery, merged with Mohit Diamonds in 2008-09, became
Mohit Diamonds' jewellery division, manufacturing and exporting
diamond-studded jewellery. Its 26,000-square-foot manufacturing
unit is in Andheri, Mumbai.
PREET MACHINES: ICRA Assigns 'LBB' Rating to INR18cr Bank Debt
--------------------------------------------------------------
ICRA has assigned a long term rating of 'LBB' to the INR18.00
crore fund based and non fund based facilities of Preet Machines
Limited. The outlook on the rating is stable.
The rating takes into account significantly high customer
concentration risk as evidenced by a single customer accounting
for almost 50~80% of PML's revenue and top 5 customers
consistently accounting for almost 80% of revenue over past few
years. The rating is also constrained on account of its exposure
to cyclicality inherent in the end-user industries for its
products, i.e. steel rolling; which is reflected in decline in
turnover during FY 2009-10 following the slowdown in order inflows
due to weak economic conditions. As a result of decline in
revenues, the company's liquidity has remained stretched as
reflected in consistently high utilization of its fund based
working capital limits. With the improvement in economic
conditions, the company's order book position has again revived
and provides visibility of revenues in near term, however almost
80% of its current order book is accounted by a single customer,
which will continue to pose high customer concentrations risk in
near term. The rating also factors in relatively weak profit
margins of the company, which coupled with low utilization of its
capacities has resulted in below average return indicators.
Notwithstanding the weak profitability and return indicators, the
company's debt coverage indicators have remained satisfactory due
to its limited reliance on term loans for funding of its plant and
machinery, which coupled with steady equity infusion, has also
resulted in comfortable capital structure with a gearing of less
than 1 time over past few years. The rating also derives comfort
from the established manufacturing facilities of the company and
its demonstrated track record of growth and profitable operations.
Going forward, the company's ability to diversify its customer
base and achieve higher revenue growth while improving its profit
margins will be key rating sensitivities.
About Preet Machines
Preet Machines Limited is the flagship company of the Preet Group,
and is mainly into the business of manufacturing rolling mills for
steel plants. The company has its manufacturing facilities located
in the industrial area of Tronica City, Ghaziabad. During FY 2010,
the company reported net sales of INR62.82 crore and net profit of
INR0.33 crore as against net sales of INR133.12 crore and net
profit of INR0.74 crore during FY 2009.
QRS RETAIL: CRISIL Assigns 'BB' Rating to INR70 Million LT Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the bank facilities
of QRS Retail Ltd.
Facilities Ratings
---------- -------
INR70.00 Million Long-Term Loan BB/Stable (Assigned)
INR288.00 Million Cash Credit BB/Stable (Assigned)
The rating reflects QRSRL's below-average financial risk profile,
marked by a high gearing and weak debt protection metrics,
working-capital-intensive operations, and geographically
concentrated revenue profile. These rating weaknesses are
partially offset by QRSRL's established brand image in Kerala and
its longstanding relationships with its suppliers.
Outlook: Stable
CRISIL believes that QRSRL will maintain its position in the
consumer durables market in Kerala over the medium term, backed by
its established brand image. The outlook may be revised to
'Positive' if QRSRL diversifies its revenue profile or if its
capital structure improves significantly. Conversely, the outlook
may be revised to 'Negative' if the company contracts more-than-
expected debt or if the margins decline, or if it extends funding
support to its group entities, leading to deterioration in its
financial risk profile.
About QRS Retail
Incorporated in 2006, QRSRL is part of the QRS group. QRSRL
retails consumer durables, and has 21 retail outlets in Kerala.
The company is jointly managed by Mr. S Gauthaman and his brother,
Mr. S Muralidharan.
The QRS group has been in the business of retailing for more than
five decades. Besides retailing of consumer durables, the group is
also into retailing of mobile phones and textiles through various
other group entities. QRSRL operates most of its showrooms on the
properties of Quilon Radio Service, a group entity which is into
real estate development.
QRSRL reported a profit after tax (PAT) of INR8.60 million on net
sales of INR1.67 billion for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR6.20 million on net
sales of INR1.29 billion for 2008-09.
RAIN CII: Fitch Puts 'B' Rating on Rating Watch Negative
--------------------------------------------------------
Fitch Ratings has placed Rain CII Carbon (India) Ltd's ratings on
Rating Watch Negative on its ongoing corporate restructuring:
-- 'B' Long-term foreign currency issuer default rating;
-- 'B+/RR3' foreign currency senior secured term loans Tranche D
(US$120.7m, of which US$89.2m is outstanding as at 30
September 2010);
-- 'A-(ind)' National Long-term rating; and
-- Senior secured revolver Tranche E1 (US$15m) and Tranche E2
(US$39.3m) at 'B+/RR3' and 'A-(ind)/F2+(ind)' on the
National rating scale.
RCCIL is undergoing a corporate restructuring exercise, whereby
the US-based Rain CII Carbon LLC (RCC US) will no longer be a
subsidiary. Following the restructuring, both RCC US and RCCIL
will be held by a common US-based holding company, have limited
legal linkages, and limited cash flow fungibility. With the
weakening of linkages between the two entities, Fitch's rating
approach will move to that of a standalone analysis, in line with
its criteria on rating entities within a corporate group
structure.
The company plans to renegotiate some of the terms of its existing
loans such that the tight covenants and legal linkages with RCC US
are likely to be weaker. Fitch believes that RCCIL's ratings
could be lower than the consolidated entity's on a standalone
basis, although its debt metrics are comparable with the
consolidated entity's, given its smaller size and limited access
to RCC US's cash flows following the restructuring. The India
business was also affected by substantial exchange rate and raw
material price volatility in 2009.
The extent of downward pressure on the foreign currency IDR would
most likely be restricted to one notch, given its comfortable
leverage (FY09 adjusted net debt/EBITDA (excluding guarantees):
3x) and positive free cash flows. The ratings would also be
supported by the company's fundamental business strengths,
including proximity to a port which gives it a freight cost
advantage, and underlying growing demand for anode grade calcined
petroleum coke driven by the large aluminum capacity additions in
India and the Middle East.
The RWN will be resolved once Fitch receives information on the
company's future plans and has clarity on the impact of the
restructuring on the company's operating business, especially with
regards to raw material sourcing and freight cost savings. The
restructuring is expected to come into effect by December 2010.
The agency plans to resolve the RWN by January 2011.
For the financial year ended 31 December 2009, RCCIL reported
revenues of US$183.9m, with EBITDA margins of 17.8% and net income
margins of 13%. The company continued to report positive free
cash flows. In H110, although revenues were lower due to a
decline in prices of CPC, the company was able to maintain EBITDA
margins. Net debt levels were at US$73m as at 30 September 2010,
resulting in an annualized net debt/EBITDA of around 2.8x.
RAHUL AGRO: ICRA Assigns 'LBB-' Rating to INR7cr Long Term Loan
----------------------------------------------------------------
ICRA has assigned an "LBB-" rating to the INR7 crore long term
fund based limits Rahul Agro Industries. The outlook on the
rating is stable. The rating is constrained by the high
fragmentation and competitive intensity in the sesame seed market
resulting in low profitability margins, vulnerability of
profitability to price fluctuations which is a function of global
crop position of sesame seed as well as domestic agro climatic
conditions; and weak financial profile as reflected in high
gearing level and weak debt protection metrics. The ratings,
however, factor in the moderately long experience of the promoters
of RAI in the sesame seed processing and trade and improving
demand prospects for sesame seeds globally.
Rahul Agro Industries is a proprietorship concern of Mr Rahul
Pancholi established in 2006 for processing and sale of hulled
sesame (Til) seeds. The firm has a processing plant located in
Ajmer, Rajasthan. The promoters have been engaged in the business
of sesame trading for exports over the last one decade under
separate firms. Based on provisional accounts, RAI had a net
profit of INR0.17 crore on a turnover of INR31.62 crore in
2009-10.
RATNACHINTAMANI METALLOYS: CRISIL Puts 'B' Rating on INR59MM Loan
-----------------------------------------------------------------
CRISIL has assigned its rating of 'B/Stable' to the bank
facilities of Ratnachintamani Metalloys Pvt Ltd.
Facilities Ratings
---------- -------
INR60 Million Cash Credit B/Stable (Assigned)
INR59 Million Term Loan B/Stable (Assigned)
INR1 Million Proposed LT Bank B/Stable (Assigned)
facility
The rating reflects the company's exposure to stabilisation
related risks, and its weak financial risk profile marked by small
net worth and aggressive gearing. These weaknesses are mitigated
by the benefits that the company derives from its promoters'
extensive industry experience and their financial support.
Outlook: Stable
CRISIL believes that RMPL's business and financial risk profiles
will remain constrained over the near to medium term since it is a
new entrant in the industry and may take time to stabilize its
operations. The outlook may be revised to 'Positive' if the
company ramps up its operations and generates profits as
envisaged, within expected timeframe. Conversely, the outlook
could be revised to 'Negative' if RMPL fails to scale up its
revenues and improve its accruals, which would constrain its debt
repayment ability, or it undertakes any large debt-funded capital
expenditure that may further constrain its financial risk profile.
About Ratnachintamani Metalloys
RMPL was incorporated in July, 2008 by Mr. Dinesh Shah and Mr.
Amit Shah to manufacture copper and copper alloy products, such as
tubes, rods, pipes, flanges, and flats. These products find usage
in various end user industries such as panel manufacturing,
automobile and electrical equipment industries and fertilizer and
dairy plants. The company commenced operations in April 2010 at
its unit in Umbergaon, Gujarat. The unit has an annual capacity
for manufacturing 2400 tpa of copper and copper alloy products.
The plant involved a capital outlay of about INR110 million, which
has been funded through a term loan of INR59.0 million, equity
infusion of INR27.5 million, and the remainder through unsecured
loans.
SAMOSARAN YARNS: CRISIL Assigns 'BB' Rating to INR137.5MM LT Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Samosaran Yarns Pvt Ltd, which is part of the SYPL-
SSPL combine.
Facilities Ratings
---------- -------
INR90.0 Million Cash Credit BB/Stable (Assigned)
INR137.5 Million Long-Term Loan BB/Stable (Assigned)
INR57.5 Million Proposed LT Bank BB/Stable (Assigned)
Loan Facility
INR15.0 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the SYPL-SSPL combine's modest scale of
operations and limited pricing flexibility because of the
commodity-like market it operates in. These rating weaknesses are
partially offset by the combine's promoters' experience in the
synthetic yarn industry.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SYPL and Samosaran Syntex Pvt Ltd
(SSPL; a yarn-trading company). This is because the two
companies, together referred to as the SYPL-SSPL combine, have
common promoters and derive significant business synergies from
each other. SYPL has extended corporate guarantee to SSPL's bank
facilities.
Outlook: Stable
CRISIL believes that the SYPL-SSPL combine will maintain its
market position over the medium term and continue to benefit from
the industry experience of its promoters. The outlook may be
revised to 'Positive' if the combine sustains a significant
increase in its scale of operations, thereby increasing its cash
accruals, and improving its operating margin and debt protection
metrics. Conversely, the outlook may be revised to 'Negative' if
the combine undertakes a large, debt-funded capital expenditure
programme, thereby adversely affecting its capital structure, or
its operating margin or debt protection metrics decline.
About Samosaran Yarns
SYPL manufactures and trades in synthetic yarn. The company is
part of the Pukhraj Virchand group of companies, run by the Jain
family, which has been in the yarn trading business since 1948.
Mr. Jindas Jain and his brothers set up SYPL in 2006 to
manufacture yarn; its plant is in Bhiwandi (Maharashtra). The
plant processes yarn with counts ranging between 30 and 80; its
yarn is used primarily in shirting and dress materials. The plant
has doubling and twisting facilities. The Bhiwandi plant has
18,000 spindles. In 2008, SYPL began setting up a spinning plant
at Silvassa (Gujarat) and commissioned it in September 2009; this
plant processes coarser yarn, and suiting and shirting fabric.
The SYPL-SSPL combine reported a profit after tax (PAT) of INR14.9
million on net sales of INR1698.7 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR9.3
million on net sales of INR987.9 million for 2008-09.
STERLING TECHNOTEX: CRISIL Assigns 'D' Rating to INR89.2MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to Sterling Technotex Pvt
Ltd's bank facilities.
Facilities Ratings
---------- -------
INR40.00 Million Cash Credit D (Assigned)
INR3.00 Million Standby Line D (Assigned)
of Credit
INR89.20 Million Term Loan D (Assigned)
INR10.00 Million Letter of Credit P5 (Assigned)
INR3.80 Million Bank Guarantee P5 (Assigned)
The ratings reflect delay by STPL in servicing its term loan; the
delay has been caused by STPL's weak liquidity.
STPL's weak financial risk profile is marked by below-average debt
protection metrics, and high gearing. The company is also exposed
to risks related to small scale of operations and customer
concentration in revenue profile. STPL, however, benefits from
its promoters' industry experience.
Incorporated in 2000, STPL produces polyester yarn. Initially,
the company was into manufacturing blended yarn of polyester,
viscose and cotton yarn. As on March 31, 2010, the company had a
capacity 13,248 spindles in Rajapalayam (Tamil Nadu). It produces
polyester texturised and high-twisted yarn of counts
30's/42's/45's/50's. The company is promoted and managed by Mr.
Subramaniya Raja and his family members.
STPL reported a net loss (on a provisional basis) of INR2 million
on net sales of INR169 million for 2009-10 (refers to financial
year, April 1 to March 31), against a loss of INR3 million on net
sales of INR174 million for 2008-09.
SUPREME COATED: CRISIL Assigns 'BB' Rating to INR114.5MM LT Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to Supreme Coated Board
Mills Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR114.50 Million Long-Term Loan BB/Stable (Assigned)
INR15.30 Million Working Capital BB/Stable (Assigned)
Demand Loan
INR130.00 Million Cash Credit BB/Stable (Assigned)
The rating reflects SCBM's small scale of operations, large
working capital requirements, and average financial risk profile,
marked by a weak capital structure. These rating weaknesses are
partially offset by SCBM's established relationships with its
customers, and benefits that it derives from healthy growth
prospects for the duplex board industry.
Outlook: Stable
CRISIL believes that SCBM will continue to benefit from its
promoters' industry experience over the medium term. The outlook
may be revised to 'Positive' in case of significant improvement in
SCBM's scale of operations, sustainable profitability, and
improvement in its capital structure. Conversely, the outlook may
be revised to 'Negative' if SCBM undertakes any large debt-funded
capital expenditure programme, or its profitability declines
significantly, thereby deteriorating its financial risk profile.
About Supreme Coated
Set up in 2003, SCBM (formerly, Supreme Duplex Board Mills Pvt
Ltd) commenced commercial operations in 2005. SCBM manufactures
white-coated boards, which are used in the matchstick, firework,
notebook, and packaging industries, among others. SCBM is the
pioneer in duplex board manufacturing in and around Sivakasi
(Tamil Nadu). SCBM has a production capacity of 150 tonnes per
day.
SCBM reported a profit after tax (PAT) of INR20 million on net
sales of INR610 million for 2009-10 (refers to financial year,
April 1 to March 31), against a net losses of INR0.40 million on
net sales of INR520 million for 2008-09.
VENUS LIFESTYLES: ICRA Assigns 'LBB+' Rating to INR30cr Bank Debt
-----------------------------------------------------------------
ICRA has assigned long term rating of "LBB+" to the INR30.00 crore
Fund Based facilities and INR12.74 crore Term Loans of Venus
Lifestyles Limited. The outlook on long term rating is stable.
ICRA has also assigned short term rating of A4+ to the INR10.70
crore Non Fund based bank facilities of Venus Lifestyles Limited.
The ratings assigned take into account the long track record of
promoters in textiles industry, established brand 'ICO', foray
into embroidery work segment which is expected to boost the
margins of the company, backward integration through the group
company International Thread Company Private Limited for
manufacture of viscose hank yarn, robust growth in operating
income over the past years translating into strong return
indicators. However the ratings are constrained by weak cash
flows and higher gearing of the company resulting in modest debt
protection indicators. Further the competitive nature of the
industry is expected to put pressure on the margins of the company
though entry into embroidery work segment should provide some
support. A change in Anti Dumping Duty structure can impact the
import cost of the company and can pose a risk to its operations.
However, the company's ability to partially pass the raw material
price volatility to its customers coupled with a fast conversion
process (viscose hank yarn to viscose embroidery thread) mitigates
the price risk to some extent.
About Venus Lifestyles
Venus Lifestyles Limited earlier known as Venus Fibres Limited was
incorporated in 2004 and is a manufacturer of Embroidery Thread.
The manufacturing facilities are located in Surat (Gujarat). The
company sells the Embroidery Thread under the brand 'ICO'. The
company also traded Embroidery Machines till FY 2008. In FY 2010,
the company had installed machinery for Embroidery work on
sarees. The current capacity for manufacture of Embroidery thread
is 2700 MT per annum.
Recent Results
Venus Lifestyles Limited reported a profit after tax (PAT) of
INR3.93 Crore in FY 2009-10 on an operating income of INR121.15
Crore registering a jump of 99% in operating income YoY. This was
led by an increase in traded goods sales which included sales of
'Jari' and 'Fancy Grey' apart from an increase in sale of
manufactured 'Embroidery Thread'.
=================
I N D O N E S I A
=================
MNC SKY: Moody's Assigns 'B2' Rating to US$165 Million Notes
------------------------------------------------------------
Moody's Investor Service has assigned definitive B2 rating on the
US$165 million 12.75% notes due 2015 guaranteed by PT MNC Sky
Vision.
Ratings Rationale
Moody's definitive rating on this debt obligation confirms the
provisional rating assigned on October 28, 2010. Moody's rating
rationale was set out in a press release issued on that date, and
explored more fully in a Credit Opinion issued on October 29,
2010.
The proceeds from this issuance will contribute to the acquisition
of S-Band satellite transponders from SES S.A. for $95 million and
the refinancing of existing indebtedness.
Sky Vision's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk. These
attributes were compared against other issuers both within and
outside of Sky Vision's core industry and Sky Vision's ratings are
believed to be comparable to those of other issuers of similar
credit risk.
Headquartered in Jakarta Indonesia, Sky Vision is a provider of
direct to home pay-TV services. It is 75% owned by PT Global
Mediacom Tbk, a diversified media company, which is in turn 51%
owned by PT Bhakti Investama Tbk. PT Bhakti Investama Tbk holds
an additional 20% direct stake in Sky Vision.
VALLAR PLC: Moody's Comments on Berau Coal and Bumi Rating Impact
-----------------------------------------------------------------
Moody's Investors Service notes the series of transactions
announced by the recently formed Vallar Plc, a UK-listed mining
investment vehicle, with respect to its investment in the
Indonesian coal mining sector, and sees no immediate impact on the
B2/Stable rating of PT Berau Coal and the Ba3/Negative rating of
PT Bumi Resources Tbk.
These transactions include the sale to Vallar Plc by PT Bakrie and
Brothers (unrated) of a 25% holding in Bumi Resources and the sale
by Recapital Advisors of a 75% holding in PT Berau Coal Energy,
the immediate parent of Berau Coal.
On completion of the transactions, expected in Q2 2011, Recapital
will hold 25% and Bakrie 43% of Vallar Plc. Vallar Plc will
eventually be renamed Bumi Plc.
The consideration involves the issue of new Vallar shares and
additionally, in respect of BCE, a cash consideration of US$739
million.
The cash has now been received by Recapital for its BCE shares and
the economic rights given to Vallar, although the shares will
remain in the name of Bukit Mutiara until April 2011, when the
change of ownership will be registered.
Under the terms of the US$450 million notes issued by Berau
Capital Resources Pte. Ltd, a change of control event will occur
once Vallar Plc owns the BCE shares. The issuer would then need
to make a tender offer for the bonds, within 30 days, at a price
of 101% of face value. The early repayment would also trigger a
cross-default in a US$400 million credit facility. However, on
its own, the loan will require only the consent of lenders if the
obligor changes.
The bonds are currently trading at a premium to the price that
would be offered under the change of control clause. Moody's is
unaware of any alternative liquidity facility that could support
the repayment of all the bonds and the loan were an event of
default called by creditors.
However, the likelihood of such an event is remote in the near
term and Moody's expects the change of control tender, and the
process of obtaining consents from lenders, to be carefully
managed between now and the completion of the deal in April. The
cost burden in terms of fees and purchases of tendered bonds is
likely to be manageable and Moody's understands that it is not
BCE's intention to cancel any bonds so acquired. At September 30,
2010, BCE reported cash and short-term investments of
approximately US$482 million, including US$156 million in
restricted cash holdings.
Moody's notes that the broad wording of the change of control
language in Bumi Resources's bond documents seems to preclude a
change of control event from arising on this occasion, as Bakrie
Group affiliates will retain control of Bumi Resources by way of
their interest in Vallar. Moody's therefore expects no impact on
Bumi Resources arising from these transactions.
The minimal downside risk of a large event of default at BCE is
mitigated by some positive developments. In particular, the cash
now received by Recapital has been applied to pay down its own
indebtedness, which is held by its subsidiary Bukit Mutiara, the
immediate vehicle holding its BCE shares. This debt represents
the recently refinanced vendor notes (some US$500 million) owed to
the last owners of BCE, as well as an outstanding US$150 million
owed to Bumi Resources.
Moody's will continue to monitor developments at BCE and also
consider the credit standing of Vallar Plc as the new holding
company for BCE. As at September 30, 2010, Vallar Plc held some
US$1 billion in cash and no debt on its balance sheet. Some
US$740 million of the liquid funds have since been disbursed as
the cash element of the BCE acquisition.
Recapital's debt has been a factor weighing on Berau's rating,
given that any default by Bukit Mutiara would cross-default into
BCE. Meanwhile, Berau Coal's operating performance is currently
meeting expectations.
Given the performance of BCE and the removal of the debt overhang
at Recapital, Moody's may consider a positive rating action,
subject to the removal of the residual threats arising from both
the bond's change of control clause and from facility lenders
denying consent to the change of obligor.
=========
J A P A N
=========
CHELSEA TRUST: Moody's Downgrades Rating on Various Certificates
----------------------------------------------------------------
Moody's Japan K.K has downgraded its rating on the Chelsea Trust
Class C through G trust certificates and asset specified loan.
The complete rating actions are:
-- Class C, downgraded to A3 (sf) from A2 (sf); previously on
November 5, 2010 A2 (sf) placed under review for possible
downgrade
-- Class F, downgraded to B3 (sf) from Ba3 (sf); previously on
November 5, 2010 Ba3 (sf) placed under review for possible \
downgrade
-- Class G, downgraded to B3 (sf) from Ba3 (sf); previously on
November 5, 2010 Ba3 (sf) placed under review for possible
downgrade
-- Asset Specified Loan, downgraded to Caa3 (sf) from B3 (sf);
previously on November 5, 2010 B3 (sf) placed under review
for possible downgrade
* Deal Name: Chelsea Trust Certificates and Chelsea Asset
Specified Loan
* Class: Class A1 through G trust certificates and Asset Specified
Loan
* Issue Amount (initial): JPY 20.0 billion
* Dividend: Floating
* Issue Date (initial): November 6, 2006
* Final Maturity Date: August, 2013
* Underlying Asset (initial): A specified bond backed by a
commercial real estate certificate (the Chelsea Trust
Certificates) and a specified loan (Chelsea Asset Specified
Loan)
* Originator: Mizuho Securities Co., Ltd.
* Arranger: Mizuho Securities Co., Ltd.
* Trustee: Mizuho Trust & Banking Co., Ltd.
The Chelsea trust certificates and specified loan, effected in
November 2006, represent the securitization of a high-rise office
building in Chuo-ku, Osaka.
Chelsea Asset TMK issued a specified bond and took out a specified
loan, both of which were backed by the property trust certificate.
The originator entrusted the specified bond to the trustee
pursuant to the trust agreement and received the Class A1 through
G Trust Certificates, which it then sold to investors. The trust
certificates and specified loan are rated by Moody's.
Tenant concentration is high; approximately 65% of the total
rentable area was occupied by a single tenant. In October 2010,
the tenant issued a press release (on its website) stating that it
planned to vacate the building in 2013.
Rating Rationale
The current rating action and review reflect these factors:
(1) Moody's is of the view that the fundamental profitability of
the property is likely to be lower than was assumed when the
rating was first assigned, and will be for some time. Moody's
has therefore changed its stabilized rent estimates, although
operating costs remain roughly the same as previously. As a
result, Moody's stabilized net cash flow estimate has declined
by 26%, and stabilized value by 32%, from its initial
assumptions.
(2) This rating action is based mainly Moody's concerns about the
likelihood of collateral recovery in light of the re-assessed
value. However, it also takes into
Moody's did not receive or take into account a third party due
diligence report on the underlying assets or financial instruments
related to the monitoring of this transaction in the past six
months.
JAPAN AIRLINES: Creditors Back Rehabilitation Plan
--------------------------------------------------
Japan Airlines Corp. won approval for its groupwide rehabilitation
plan Monday after one of its labor unions decided not to call a
strike, Kyodo News reports citing the state-backed Enterprise
Turnaround Initiative Corp.
Kyodo News relates that most of JAL's creditors approved the plan
to revamp JAL, JAL International and JAL Capital, reaching a basic
agreement to provide new loans. This should allow the plan to win
approval from the Tokyo District Court by the end of this month,
Kyodo News says.
Kyodo News discloses that under the rehabilitation plan submitted
to the court in August, JAL aims to post JPY117.5 billion in
operating profit in the fiscal 2013 by cutting its group work
force by about 16,000, scrapping money-losing flights, and
conducting other cost-cutting measures.
The carrier's state-backed bankruptcy administrator said JAL was
under pressure to win over its creditors by its deadline of last
Friday, and more than 96 percent of its creditors approved the
plan by mail, according to Kyodo News.
The Mainichi Daily News reports that the 1,750-member JAL Flight
Crew Union (JFU) of JAL has called off voting on the right to
strike in protest at the company's plans for downsizing as part of
its restructuring strategy.
ETIC had said that it would freeze some JPY350 billion in
financing for the struggling carrier if its labor unions decide
they have the right to strike over major job cuts, the daily says.
"We canceled the vote for now because of rising tension among
workers over the ETIC's warning that it would withhold financing,"
the Mainichi Daily quoted an official at JFU as saying. "We've
decided to concentrate on other ways to prevent the company from
laying off workers."
About Japan Airlines
Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services. The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.
Japan Airlines Corporation, Japan Airlines International Co.,
Ltd., and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court. The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.
Japan Airlines Corp. filed for reorganization January 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in New
York (Bankr. S.D.N.Y. Case No. 10-10198). The Company estimated
debts at $28 billion.
TITAN JAPAN: Fitch Downgrades Ratings on Four Classes of Notes
--------------------------------------------------------------
Fitch Ratings has downgraded four classes of notes from Titan
Japan, Series 1 GK due November 2012, and simultaneously withdrawn
the rating on the interest-only Class X notes. The transaction is
a Japanese multi-borrower type CMBS securitization. The rating
actions are as listed below.
-- JPY60.89bn* Class A notes downgraded to 'BBBsf' from 'AA-sf';
Outlook revised to Negative from Stable;
-- JPY12.1bn* Class B notes downgraded to 'Bsf' from 'BBBsf';
Outlook Negative;
-- JPY11.8bn* Class C notes downgraded to 'CCCsf' from 'BBsf';
assigned a Recovery Rating of 'RR5'; and
-- JPY11.7bn* Class D notes downgraded to 'CCsf' from 'Bsf';
assigned a Recovery Rating of 'RR6'.
* as of 18 November 2010
The rating on the Class X notes (interest-only) of 'AAAsf' with
Stable Outlook has been withdrawn.
Classes A to D have been downgraded following further downwards
revisions of the values of the collateral properties backing this
CMBS in Fitch's analysis. Most of the collateral properties
backing this CMBS are general merchandise stores. Fitch is
concerned that the possible slowdown in sales from such stores may
negatively affect the appetite of potential buyers of these
properties.
Fitch has revised downwards the net cash flows for 23 of the 34
collateral properties, taking into account current retail and
office lease market conditions, and the actual cash flow
performances of the properties to date. Each property's cap rate
was revised depending on the particular sector of the commercial
real estate market in which it operates. The cap rates of retail
properties located in local cities have generally been revised
upwards to reflect the current stressed condition of that market.
Cap rates of office properties located in central Tokyo were left
largely unchanged.
As a result, Fitch has adopted values for the underlying
properties, for the purpose of this review, which are on average
25% lower than those adopted in the previous review in November
2009; these values are on average 50% lower than the agency's
initial analysis in December 2007. The large decline at this time
is mainly due to the revision of retail properties' value which
account for 76% of the collateral portfolio.
The impact of these revisions outweighs the positive effect of the
repayment of one underlying loan. This loan, having accounted for
14.9% of the total portfolio as of August 2010, was paid in full
in September 2010 and resulted in slightly improved credit
enhancement levels for classes A to C.
The agency has revised the Outlook on class A to Negative, while
the Outlook on class B remains Negative, amid concerns about the
liquidity of the retail properties located in regional cities.
The rating on the interest-only class X notes, which addresses
only the likelihood of receiving interest payments while principal
thereon remains outstanding has been withdrawn. For additional
information, please refer to the rating action commentary,
entitled "Fitch Revises Practice for Rating IO & Pre-Payment
Related Structured Finance Securities", dated 23 June 2010.
At closing, the notes were backed by six loans ultimately secured
by 43 real estate properties in Japan. To date, two loans have
been fully repaid, bringing the total number of loans backing the
transaction to four, secured by a total of 34 properties. All
four loans are in default.
* S&P Raises Ratings on Five Tranches From Five Japanese CDOs
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on five
tranches relating to five Japanese synthetic CDO transactions, and
removed the ratings from CreditWatch with positive implications.
The rating actions are part of S&P's regular monthly review of
synthetic CDOs whose ratings have been placed on CreditWatch with
positive or negative implications. These actions incorporate,
among other things, the effect of rating migration within
reference portfolios.
Ratings List
Signum Vanguard Ltd.
Class A secured floating-rate credit-linked notes series 2005-06
To From Issue Amount
-- ---- ------------
CCC+pNRi (sf) CCCpNRi (sf)/Watch Pos JPY3.0 bil.
Silk Road Plus PLC
Series 13 limited recourse secured fixed rate credit-linked notes
To From Issue Amount
-- ---- ------------
BBB- (sf) BB+ (sf)/Watch Pos S$8.064 mil.
Series 14 limited recourse secured fixed rate credit-linked notes
To From Issue Amount
-- ---- ------------
BBB- (sf) BB+ (sf)/Watch Pos S$8.5 mil.
Series 15 limited recourse secured fixed-rate credit-linked notes
To From Issue Amount
-- ---- ------------
BBB- (sf) BB+ (sf)/Watch Pos S$8.0 mil.
Series 16 limited recourse secured fixed-rate credit-linked notes
To From Issue Amount
-- ---- ------------
BBB- (sf) BB+ (sf)/Watch Pos S$9.0 mil.
=========
K O R E A
=========
HYUNDAI ENGINEERING: Hyundai Group's Funding Plan Not Under Review
------------------------------------------------------------------
Bloomberg News reports Korea Exchange Bank said Friday that
creditors aren't reviewing Hyundai Group's funding plans for the
acquisition of Hyundai Engineering & Construction Co.
Bloomberg, citing Yonhap News, reported earlier Friday that
creditors and South Korea's financial regulator will review
Hyundai Group's plan for funding the purchase of a stake in
Hyundai Engineering.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 17, 2010, Yonhap News Agency said Hyundai Engineering &
Construction Co.'s creditors selected Hyundai Group as the
preferred bidder for a major stake in the company. Korea Exchange
Bank, state-run Korea Finance Corp., Woori Bank and other creditor
banks have been pushing to find a buyer for the 34.88% stake in
the builder, estimated to fetch up to KRW4 trillion. Creditor
banks plan to sign a preliminary deal with Hyundai Group by the
end of this month and seal a final contract by year-end.
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 these 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
===============
GENERAL CORPORATION: Appoints Ernst & Young as Liquidator
---------------------------------------------------------
RHB Investment Bank Berhad, on behalf of General Corporation
Berhad, disclosed that at the extra ordinary general meeting of
the Company held on November 19, 2010, the company's shareholders
approved these resolutions:
(i) appointment of Messrs. Mazars as auditors of the Company;
(ii) members' voluntary winding-up of GCB; and
(iii) appointment Encik Adam Primus Abdullah and Mr. Duar Tuan
Kiat of Messrs. Ernst & Young as liquidators of the
Company.
In accordance with Section 258(2) of the Companies Act, 1965, all
the powers of the directors of the Company have on even date
ceased following the appointment of the Liquidators.
About General Corporation
General Corporation Berhad is engaged in investment holding and
quarry operations. The Company's five business segments are
property development and investment and investment holding,
construction of residential and commercial properties, rubber
products trading, hotel operations, and investment in associates
and joint ventures. Its property development and investment and
investment holding segment covers the development of and
investment in residential and commercial properties and
investment in quoted and unquoted securities. Its subsidiaries
include Bina Meganmas Sdn. Bhd., Fung Keong Rubber Manufactory
(Malaya) Sdn. Bhd., GCB Trading Sdn. Bhd. and Trans-Crete Sdn.
Bhd. The Company operates in Malaysia, Singapore, Australia and
Vietnam.
General Corporation Berhad has been considered a PN17 Company
based on the criteria set by the Bursa Malaysia Securities Bhd.
The Company triggered Paragraph 2.1(g) and 2.1 (h) of the Listing
Requirements as it had ceased all of its business and entire
operations due the completion of the proposed disposal of its
entire business and undertaking, including all of its assets and
liabilities, to Consistent Record Sdn Bhd.
On May 19, 2010, GCB entered into a conditional master sale and
purchase agreement with CRSB for the proposed disposal of its
entire business for MYR505.04 million.
HOVID BERHAD: 30th Annual General Meeting Set for December 15
-------------------------------------------------------------
Hovid Berhad will hold its 30th annual general meeting on Dec. 15,
2010, at 10:30 a.m. at Heritage Ballroom, Heritage Hotel Ipoh,
Jalan Raja DiHilir, 30350 Ipoh, in Perak Darul Ridzuan.
At the meeting, the shareholders will be asked to:
-- receive and adopt the Audited Financial Statements for
the financial year ended June 30, 2010, together with
the Reports of the Directors and Independent Auditors;
-- approve the payment of Directors' fees of MYR174,000
for the financial year ended June 30, 2010, to be
divided among the Directors in such manner as the
Directors may determine;
-- re-elect Mr. Ho Sue San at David Ho Sue San who is
retiring by rotation pursuant to Article 83 of the
Company's Articles of Association;
-- re-elect Mr. Leong Kwok Yee who is retiring by rotation
pursuant to Article 83 of the Company's Articles of
Association;
-- re-appoint Messrs. KPMG as Auditors of the Company for
the ensuing year and authorize the Directors to fix
their remuneration; and
-- pass these ordinary resolutions:
* Authority to Allot and Issue Shares Pursuant to
Section 132D of The Companies Act, 1965.
* Proposed renewal of shareholders' mandate for recurrent
related party transactions of a revenue or trading nature
with Carotech Berhad.
* Proposed renewal of shareholders' mandate for recurrent
related party transactions of a revenue or trading nature
with Future Express Sdn. Bhd.
* Proposed renewal of shareholders' mandate for the
purchase by Hovid of its own ordinary shares on Bursa
Securities of not more than ten percent (10%) of the
issued and paid-up share capital of Hovid.
-- pass special resolution:
* Proposed amendment to the Articles of Association of the
Company.
About Hovid Berhad
Hovid Berhad (KUL:HOVID) -- http://www.hovid.com/-- is a Malaysia
based company. The Company is engaged in the business of
manufacturing pharmaceutical and herbal products. The Company
operates in two segments: pharmaceutical, which is engaged in
manufacturing and selling of pharmaceutical products, and
phytonutrient, which includes extraction and processing of
nutrients from palm oil for the purpose of manufacturing and
producing of pharmaceutical, phytonutrient and
oleochemicals/biodiesel products. The Company's geographical
segments include Asia, Africa, Europe, Pacific Island, and North
and South America.
Hovid Berhad has been considered a Practice Note 17 company based
on the criteria set by the Bursa Malaysia Securities pursuant to
Paragraph 2.1(d) of PN17.
Hovid disclosed that that a subsidiary, Carotech Berhad, has
defaulted on the repayment of certain borrowings which were due
for payment during the financial year ended June 30, 2010, which
was announced on July 1, 2010, pursuant to the Guidance Note 5 of
the Bursa Securities ACE Market Listing Requirements. Carotech
has also sought the assistance of Corporate Debt Restructuring
Committee to mediate between Carotech and its lenders on its
Proposed Debt Restructuring scheme. The CDRC has agreed to
mediate and allowed a period of six months from July 1, 2010, to
complete the proposed scheme. The Company said that the lenders
of Carotech are currently reviewing and considering the proposed
scheme but no decision has been made as at the date the financial
statements for the financial year ended June 30, 2010, were
approved by the Board.
TRANSMILE GROUP: CCM Strikes Off Thailand Unit From Register
------------------------------------------------------------
Transmile Group Berhad said it received notification from the
Companies Commission of Malaysia that Transmile (Thailand) Sdn.
Bhd., a wholly-owned subsidiary of the Company, has been struck
off from the register of the CCM.
TTSB was incorporated in Malaysia on December 15, 1997, and its
present issued and paid-up capital is MYR1,200,002. Its principal
activity was investment holding and currently it is dormant.
The Striking-Off has no material effect on the earnings and net
assets per share of the Company for the financial year ending
December 31, 2010. Upon completion of the Striking-Off, TTSB will
cease to be a wholly-owned subsidiary of TGB.
About Transmile Group
Transmile Group Berhad is an investment holding company. The
Company is engaged in provision of air transportation and related
services. The Company's subsidiaries include Transmile Air
Services Sdn. Bhd., which provides air transportation and related
services and deals in aircraft, aircraft parts and equipment;
Transmile Thailand Sdn. Bhd., which is engaged in investment
holdings; Transmile Management Sdn. Bhd., which provides
management services; Viunique Corporation Sdn. Bhd., which leases
aircraft; and CEN Worldwide Sdn. Bhd., which is engaged in express
distribution and logistics management services.
* * *
Transmile Group Berhad has been considered as an Amended Practice
No. 17 company based on the criteria set by the Bursa Malaysia
Securities Bhd.
According to a disclosure statement with the bourse, the PN17
criteria was triggered resulting from Transmile's latest unaudited
quarterly announcement for the full financial year ended Dec. 31,
2009, wherein the shareholders' equity of the Company on a
consolidated basis is less than 25% of the Company's issued and
paid-up capital (excluding treasury shares) and such shareholders'
equity is less than MYR40 million.
====================
N E W Z E A L A N D
====================
CAFE CUBA: Faces Liquidation Over NZ$300,000 Unpaid GST
-------------------------------------------------------
Jimmy Ellingham at Manawatu Standard reports that Cafe Cuba
Trustee Ltd is facing a court challenge that could shut its doors,
as the Inland Revenue Department tries to recoup more than
NZ$300,000 in unpaid GST.
Manawatu Standard relates that an application to put Cafe Cuba
Trustee Ltd, directed by former All Blacks manager Mike Banks,
into liquidation will be heard at the High Court in Palmerston
North on Thursday next week. The IRD is seeking NZ$324,213.78 in
unpaid GST, plus penalties and interest, the report notes.
According to Manawatu Standard, Mr. Banks took over Cafe Cuba, on
the corner of George and Cuba streets, in 2007 when original owner
Phil Monk sold the business. Mr. Monk had set it up in August
1996 on a site previously home to restaurants such as Valentino's
and Chicken Tandoori.
Cafe Cuba is a Palmerston North-based restaurant.
=====================
P H I L I P P I N E S
=====================
PHILIPPINE AIRLINES: Reports US$28.2 Mil. Net Income in Sept. Qtr.
------------------------------------------------------------------
The Philippine Daily Inquirer reports that flag carrier
Philippine Airlines reported a net income of US$28.2 million for
the quarter ended September 30, 2010. PAL reported revenues of
US$399.5 million for the second quarter of fiscal year 2010-11, up
by 33% from US$299.7 million in 2009.
PAL said the carrier's "modest" gains came amid uncertainties
spawned by a looming fuel price hike and a new case of bird flu in
Hong Kong, the Inquirer says.
PAL also reported increases in both passenger (26 percent) and
cargo (57 percent) revenues from its international operations,
with an improvement as well in yields generated from passenger
seat offerings, the report adds.
The Inquirer relates PAL president and chief operating officer
Jaime Bautista said the company remained "cautiously optimistic"
of the airline's prospects.
"The global airline industry remains vulnerable to volatile market
conditions. Take fuel, for example. If the upward trend
continues, it could wipe out all our recent gains," the Inquirer
quoted Mr. Bautista saying.
Mr. Bautista said the recent negative travel advisories on the
Philippines might also lead to a dip in demand, the Inquirer adds.
About Philippine Airlines
Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline. It was the first airline in
Asia and the oldest of those currently in operation. With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights. First taking off in
1941, the carrier has grown into a fleet of about 40 aircraft
(including five Boeing 747-400s) flying to more than 20 domestic
points and about 30 foreign destinations.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
April 21, 2010, the Manila Bulletin said that the Philippine
Airlines is to spin off its three non-core units as a last resort
to avoid bankruptcy. PAL will spin off its three non-core units:
inflight catering services; airport services, including ground
handling, cargo handling and ramp handling; and call center
reservations, the Manila Bulletin said. The PAL Employees Union
estimated that 2,000 to 4,000 employees assigned to those
departments could be retired. PAL said competition from overseas
carriers, slower global economic growth, and higher oil prices had
prompted the airline to slash its non-core businesses. The
carrier had approached several investors but failed to secure
financial help, and equity had dropped to a worrisome US$1.1
million as of February 2010, according to the Manila Standard.
The TCR-AP, citing BusinessWorld Online, reported on July 28,
2010, that Philippine Airlines announced a narrower loss for its
fiscal year that ended March 2010 to $14.3 million, from the
previous year's $297.8 million, but warned of still weak demand
for international flights.
=================
S I N G A P O R E
=================
TRANSFIELD ER: Seeks Protection From Suits in the U.S.
------------------------------------------------------
Transfield ER Cape Ltd., an operator of bulk cargo ships
liquidating in British Virgin Islands courts, sought protection
from claims and lawsuits in the United States by filing a Chapter
15 petition in Manhattan (Bankr. S.D.N.Y. Case No. 10-16270).
Casey McDonald, Bob Yap Cheng Ghee and Patrick Cowley, as foreign
representatives, filed the Chapter 15 petition. James H. Power,
Esq., at Holland & Knight, LLP, in New York, serves as counsel to
the foreign representatives.
The Debtor has assets of $273.1 million and liabilities of
$432 million, according to its financial statements.
TERC has pending liquidation proceedings in a British Virgin
Islands court. In September, TMT Bulk Corporation, trading as TMT
Bulk Co. Ltd., applied to the BVI Court for a winding-up order
against TERC and the appointment of a liquidator. Later in the
month, the BVI Court issued an order directing that (i) TERC be
wound up by the BVI Court in accordance with the provisions of the
2003 Act and (ii) appointing Casey McDonald, Bob Yap Cheng Ghee
and Patrick Cowley, as Joint Liquidators of TERC.
The Joint Liquidators requested recognition of the BVI Liquidation
as a foreign main proceeding primarily to obtain the U.S.
Bankruptcy Court's assistance in enforcing the automatic stay of
proceedings that came into effect, under BVI law (the 2003 Act),
when the BVI Liquidation was ordered by the BVI Court. Despite
the BVI stay, five of TERC's creditors have continued with pending
suits against TERC in the United States in the Supreme Court, New
York County, and in the District Court for the Southern District
of New York.
"Recognition of the BVI Liquidation as a foreign main proceeding
would confer" upon TERC the protection of sections 362 and 1520 of
the Bankruptcy Code, thereby preventing one creditor from gaining
an advantage over similarly situated creditors and preventing one
creditor from otherwise interfering with the BVI Liquidation of
the TERC estate," Mr. McDonald said in a court filing.
TERC's main bankruptcy in the British Virgin Islands is already
recognized by the English High Court of Justice, Chancery
Division. In addition, TERC has received a winding up order from
a Singapore court, which also appointed Messrs. McDonald, Cowley,
and Yap as liquidators.
TERC blamed its woes on the dramatic collapse for transportation
of bulk cargo in 2008 as a result of the global economic downturn.
At that time, the Baltic Dry Index, which measures average global
freight prices for the transportation of bulk goods, collapsed,
and the price of carrying bulk goods and the demand for carriage
of bulk goods dropped significantly. As a result, TERC's
profitability deteriorated from late-2008 onwards.
===========
T A I W A N
===========
AMERICAN INT'L: Rules Out Listing Nan Shan in Taiwan Bourse
-----------------------------------------------------------
Crystal Hsu at Taipei Times reports that Financial Supervisory
Commission Chairman Chen Yuh-chang confirmed that American
International Group is not interested in listing its Taiwan
subsidiary, Nan Shan Life Insurance Co, to ease its financial
woes.
Mr. Chen made the remarks in response to lawmakers' questions on
whether the regulator would consider allowing Nan Shan Life to
trade shares on the local bourse to help the US firm pay down its
debts without selling the insurer, Taipei Times says.
"The commission made several contacts with AIG and conveyed
related options, including listing Nan Shan," Mr. Chen told the
legislature's Finance Committee, according to Taipei Times.
AIG, according to Mr. Chen, has yet to make a positive response,
indicating it is not interested, Taipei Times notes. Mr. Chen
said there is little the commission can do to prevent the sale of
Nan Shan as long as AIG complies with five principles when finding
a purchaser.
Taiwan's Financial Supervisory Commission on Aug. 31, 2010,
rejected an application to buy AIG's Nan Shan Life by a group
including Primus and China Strategic Holdings Ltd., citing
concerns over its financial capability and long-term commitment to
operate the business. Bloomberg News said AIG had been trying for
more than a year to complete what's expected to be its second-
biggest disposal since the September 2008 U.S. government bailout.
AIG expects to complete the sale of Nan Shan within a year,
Bloomberg added.
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.
=============
T H A I A N D
=============
KRUNG THAI: Fitch Affirms Individual Rating at 'C/D'
----------------------------------------------------
Fitch Ratings has affirmed Krung Thai Bank Public Company
Limited's Long-term foreign currency Issuer Default Rating at
'BBB' with a Stable Outlook and Individual Rating at 'C/D'. A
complete list of other ratings, all of which have also been
affirmed, is included at the end of this release.
KTB's ratings are primarily based on government ownership and
support. KTB is Thailand's second-largest bank with an 18.5%
market share. Its major shareholder is the Bank of Thailand's
Financial Institutions Development Fund, with a 55% stake. Fitch
believes there is a high probability KTB would receive state
support if needed, due to its size and importance to the financial
system and economy, as well as its majority state-ownership and
control. The bank's Individual Rating factors in its significant
domestic franchise as well as the bank's stand-alone financial
position; KTB has maintained strong core capital levels, while
profitability and asset quality trends have been improving,
although asset quality and reserve coverage is still weaker than
peers.
KTB reported stronger performance in 9M10 compared with 9M09, with
a 21% increase in net profit to THB11.4bn and return on assets of
0.9%, driven mainly by stronger revenues due to loans growth (up
11% yoy) and higher fee income. However, KTB's net interest
margin declined to 3% in 9M10 (2009: 3.2%) due to higher lower
yielding assets such as loans to government and interbank and
money market lending. KTB's overall performance for 2010 is
likely to remain in line with its 9M10 performance, with potential
for further improvement in 2011 given the improving domestic
economic outlook.
Despite the weak economic conditions in the past three years,
asset quality trends have continued to gradually improve. The
bank's NPLs have fallen to THB81.8bn or 7% of total loans at end-
September 2010 (end-2009: THB85.5bn or 8% of total loans),
although NPLs remains higher than peers. Also, KTB's special-
mention loans appeared to have stabilized at THB19.8bn at end-
September 2010 or 1.7% of total loans (end-2009: THB19.1bn or 1.8%
of total loans), and remained lower than peers. KTB's loan loss
reserves have been increasing over the past few years to THB45.6bn
at end-September 2010, although its coverage ratio (at 56%) is low
compared with the industry average of over 80%, indicating
additional provisioning risks. While specific provisioning is
more in line with peers, the bank has a low level of general
reserves due in part to higher exposure to government-related
loans (17% of total loans) which usually requires little
provisioning.
KTB's funding and liquidity remain stable as it has one of
Thailand's strongest local deposit franchises as most state
enterprises and government employees deposit their savings with
the bank. The bank's loan to deposit ratio stood at 96.8% at end-
September 2010, although the ratio would improve to a more
moderate level of about 88%, if bills of exchange, which are
generally classified as an alternative instrument for depositors,
are included. KTB's capital appears strong with Tier 1 capital
and total capital ratio of 9.5% and 15.2%, respectively at end-
September 2010.
The change in the Sovereign's ratings could affect KTB's Long- and
Short-term ratings, which are underpinned by government support.
The Individual Rating could be upgraded by a sustained improvement
in the bank's profitability and asset quality as well as the
maintenance of strong capital. The Individual Rating could be
downgraded by a significant deterioration in these measures.
KTB's debt and hybrid security ratings are consistent with
relevant criteria, and Fitch notes that these instruments are
performing. The hybrid Tier 1 security ratings are rated two
notches below the bank's implied unsupported IDR and unsupported
National Long-term rating based on the bank's stand-alone
financial strength, particularly its strong capital and large
retained earnings (THB54.8bn at end-September 2010); these are key
considerations for BOT to approve coupon payments, even if the
bank reports a loss (which is a potential trigger for coupon
deferral). The notching difference could therefore widen, should
these factors significantly weaken, especially if the BOT were to
indicate it may not approve such coupon payments in the event the
bank reports a loss.
KTB's ratings have been affirmed:
-- Long-term foreign currency Issuer Default Rating at 'BBB'
with Stable Outlook;
-- Short-term foreign currency IDR at 'F3';
-- Individual at 'C/D';
-- Support at '2';
-- Foreign currency subordinated debt rating at 'BBB-';
-- Support Rating Floor at 'BBB';
-- Foreign currency offshore hybrid Tier 1 securities at 'BB';
-- National Long-term rating at 'AA+(tha)' with Stable Outlook;
-- National Short-term rating at 'F1+(tha)';
-- National subordinated debt rating at 'AA(tha)';
-- National rating on domestic hybrid Tier 1 securities at
'A(tha)';
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Nov. 29, 2010
RENAISSANCE AMERICAN MANAGEMENT, INC. & BEARD GROUP, INC.
17th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York City
Contact: 1-903-595-3800;
http://www.renaissanceamerican.com/
Dec. 9-11, 2010
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Camelback Inn, a JW Marriott Resort & Spa,
Scottsdale, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
January 26-28, 2011
TURNAROUND MANAGEMENT ASSOCIATION
TMA Distressed Investing Conference
Aria Las Vegas
Contact: http://www.turnaround.org/
Jan. 27-28, 2011
AMERICAN BANKRUPTCY INSTITUTE
Rocky Mountain Bankruptcy Conference
Westin Tabor Center, Denver, Colo.
Contact: 1-703-739-0800; http://www.abiworld.org/
Feb. 3-5, 2011
AMERICAN BANKRUPTCY INSTITUTE
Caribbean Insolvency Symposium
Westin Casuarina Resort & Spa, Grand Cayman Island
Contact: 1-703-739-0800; http://www.abiworld.org/
Feb. 24-25, 2011
AMERICAN BANKRUPTCY INSTITUTE
Valcon
Four Seasons Las Vegas, Las Vegas, Nev.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 4, 2011
AMERICAN BANKRUPTCY INSTITUTE
Bankruptcy Battleground West
Hyatt Regency Century Plaza, Los Angeles, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 7-9, 2011
AMERICAN BANKRUPTCY INSTITUTE
Conrad Duberstein Moot Court Competition
Duberstein U.S. Courthouse, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 10, 2011
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts - Florida
Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 10-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
SUCL/ Alexander L. Paskay Seminar on
Bankruptcy Law and Practice
Marriott Tampa Waterside, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 17-19, 2011
AMERICAN BANKRUPTCY INSTITUTE
Byrne Judicial Clerkship Institute
Pepperdine University School of Law, Malibu, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 27-29, 2011
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott, Chicago, IL
Contact: http://www.turnaround.org/
May 5, 2011
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts - New York City
Association of the Bar of the City of New York,
New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
May 6, 2011
AMERICAN BANKRUPTCY INSTITUTE
New York City Bankruptcy Conference
Hilton New York, New York, N.Y.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 6, 2011
AMERICAN BANKRUPTCY INSTITUTE
Canadian-American Cross-Border Insolvency Symposium
Fairmont Royal York, Toronto, Ont.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Mich.
Contact: http://www.abiworld.org/
July 21-24, 2011
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 27-30, 2011
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Sanctuary at Kiawah Island, Kiawah Island, S.C.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 4-6, 2011
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Tampa Convention Center, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. __, 2011
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
Dublin, Ireland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 3-5, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Grand Hyatt Atlanta, Atlanta, Ga.
Contact: http://www.turnaround.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
November 1-3, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Westin Copley Place, Boston, Mass.
Contact: http://www.turnaround.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott Chicago, Chicago, Ill.
Contact: http://www.turnaround.org/
October 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
*********
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
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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 ***