/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/101208.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, December 8, 2010, Vol. 13, No. 242 Headlines A U S T R A L I A PACIFIC FIRST: May Face More Than AU$100 Million Legal Claims SIGMA PHARMACEUTICALS: Revenue to Fall 15% on Pfizer Move SOUVLAKI HUT: Franchised Food Company Attacks Sale Process THORNE BUILDERS: BSA to Help Homeowners as Firm Collapses H O N G K O N G MANDOLIN HK: Middleton and Power Appointed as Liquidators MAX TECH: Court Enters Wind-Up Order MINIGRAND LIMITED: Court Enters Wind-Up Order NEWCON INDUSTRIAL: Court Enters Wind-Up Order NGAN'S INVESTMENT: Court Enters Wind-Up Order PO LOK: Court Enters Wind-Up Order POWER MAX: Court to Hear Wind-Up Petition on January 12 RISE GROUP: Holds First Meetings on December 3 SHIU HUNG: Court to Hear Wind-Up Petition on January 5 SIM HA: Court to Hear Wind-Up Petition on January 19 SERENA ELECTRICAL: Court to Hear Wind-Up Petition on December 29 SUPERIOR PRECESION: Yeung Mui Kwan David Appointed as Liquidator SUPREME ART: Court Enters Wind-Up Order TEN PLUS: Lui and Yuen Appointed as Liquidators TONIC APPLIANCES: Court to Hear Wind-Up Petition on December 15 UNIVERSAL SHEEN: Creditors Get 100% Recovery on Claims WELLICO DEVELOPMENT: Court Enters Wind-Up Order WIDEST SKY: Court Enters Wind-Up Order I N D I A ABHAY ISPAT: ICRA Assigns 'LBB+' Rating to INR34.50cr Bank Debt BHUVANESWARI COTSPIN: ICRA Assigns 'LBB' Rating to INR15.3cr Loan CARONA INDUSTRIES: CRISIL Reaffirms 'B' Rating on INR189.1MM Loan DURAIRAJ MILLS: ICRA Reaffirms "LBB" Rating on INR38cr Term Loan FRONTIER KNITTERS: CRISIL Reaffirms 'C' Rating on INR100MM Debt ING VYSYA: Fitch Affirms Individual Rating at 'D' MYSORE PAPER: CRISIL Cuts Rating on INR450MM Cash Credit to 'C' NAVBHARAT EXPLOSIVES: CRISIL Reaffirms 'B+' Rating on INR50MM Debt NAVBHARAT FUSE: CRISIL Reaffirms 'D' Rating on INR122MM Term Loan RAVIAN ENGINEERS: CRISIL Places 'B' Rating to INR41.7MM Term Loan RUKMANI INFRA: CRISIL Assigns 'D' Rating to INR20 Million Loan SAI COMPUTERS: CRISIL Assigns 'BB+' Rating to INR110MM Cash Credit SURYAUDAY SPINNING: CRISIL Cuts Rating on INR206.4MM Loan to 'D' TORQUE AUTOMOTIVE: ICRA Assigns 'LBB+' Rating to INR28cr Bank Debt I N D O N E S I A ARPENI PRATAMA: Bondholders Reject Request For Standstill Deal BANK DANAMON: Fitch Affirms 'BB+' Issuer Default Rating BANK OCBC: Fitch Affirms Issuer Default Ratings at 'BB+' J A P A N JLOC 41: Moody's Downgrades Rating on Class D1 Notes to 'C' JLOC XXX: Fitch Places Bond Ratings on Negative Watch JLOC XXX: Fitch Puts Ratings on Notes on Negative Watch M A L A Y S I A GULA PERAK: Reports MYR33.07 Mil. Net Loss For September 30 Qtr JERNEH ASIA: Classified as Affected Listed Issuer Under PN17 TRACOMA HOLDINGS: Posts MYR11.09MM Net Loss in Qtr Ended Sept. 30 VTI VINTAGE: Posts MYR1.35 Million Net Loss in Qtr Ended Sept. 30 N E W Z E A L A N D CRAFAR FARMS: Allan Crafar Loses Bid to Fend Off Eviction T H A I L A N D TMB BANK: Fitch Affirms 'BBB-' Long-Term Issuer Default Rating X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= PACIFIC FIRST: May Face More Than AU$100 Million Legal Claims ------------------------------------------------------------- The Sydney Morning Herald reports that a public examination into the "gross mismanagement" of First Mortgage Fund's former manager, the failed Gold Coast property financier City Pacific, could yield legal actions worth more than AU$100 million. The Herald relates that in a series of briefings last month to unitholders who have lost more than half of their initial AU$900 million investment, First Mortgage Fund's current manager, Balmain Trilogy said a public examination to be conducted next year could pave the way for legal claims against "professional advisers, service providers, executives and financiers." "We found circumstances under which unit holders had been deceived and defrauded and we now face the greatest possible challenge to recover value for unit holders," Balmain Trilogy said in an investor briefing document obtained by the Herald. According to the Herald, Balmain Trilogy said the Australian Securities and Investments Commission has taken the unusual step of allowing it -- as responsible entity for the fund -- to conduct a public examination. "This now enables us to examine the records and behaviour of people and companies involved in the history of your fund," the manager said. "Subject to the results of the examinations, we believe that the claims could exceed $100 million." The Herald says the public examination and any subsequent legal action will be financed by the litigation funder IMF, which will take 26% of proceeds from any successful action on a no-win, no- fee basis. Balmain Trilogy continued to offer investors a scathing assessment of City Pacific's actions as the original manager of the fund, saying "it was never managed for the benefit of investors but rather as the preferred lender to City Pacific itself and its various joint ventures," the Herald reports. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 29, 2010, Pacific First Mortgage Fund avoided an asset fire sale after Commonwealth Bank of Australia extended an AU$82 million loan facility for the beleaguered fund. The new loan facility expired on June 30, 2010, but will be renewable every year if CBA remains comfortable with the fund's performance. Balmain Trilogy's joint chief executive Andrew Griffin said the bank's decision enhanced the fund's ability to improve recoveries from its assets and prevented a fire sale of some assets. About PFMF Pacific First Mortgage Fund, formerly known as City Pacific First Mortgage Fund, is an unlisted registered managed investment scheme. Historically, the responsible entity of the Fund has been the ASX listed company City Pacific Limited (City Pacific). Unit holders in the Fund requisitioned a meeting under s.252B of the Corporations Act 2001, to consider the removal of City Pacific and the appointment of Trilogy Funds Management Limited as responsible entity for the Fund. The meeting was held on June 25, 2009. SIGMA PHARMACEUTICALS: Revenue to Fall 15% on Pfizer Move --------------------------------------------------------- Sigma Pharmaceuticals said Monday that it expects its annual wholesaling revenues to decrease by approximately 10-15% from February 2011 after one of its major suppliers, Pfizer Australia, said it will be expanding its current "Pfizer Direct" model so that all prescription products will be delivered by Pfizer direct to pharmacies. This program will by-pass the national full line wholesaling system. "However, the full impact on future earnings is being assessed," Sigma said in a statement. Pfizer also said it would not be seeking to participate in the Community Service Obligation (CSO) funding pool. Sigma will continue to distribute Pfizer's OTC & Consumer Products. "Given the significance of this change, combined with the impact of the recent PBS reform legislation, this will accelerate the need for Sigma to further reduce its customer trading terms," Sigma said. About Sigma Pharmaceuticals Based in Australia, Sigma Pharmaceuticals Limited (ASX:SIP) -- http://www.sigmaco.com.au/-- manufactures, markets and distributes pharmaceutical products through the pharmacy and grocery channels and the provision of services to retail pharmacists. Its Pharmaceuticals segment includes the manufacture or contract manufacture for Australian and overseas customers. The Company's Healthcare segment represents its traditional pharmacy wholesale business. Its subsidiaries include Chemist Club Pty Limited, Sigma Company Limited, Amcal Pty. Limited, Commonwealth Drug Company Pty. Ltd., Fawns & McAllan Proprietary Limited, Guardian Pharmacies Australia Pty. Ltd and Sigma Finance Pty. Ltd. On October 2, 2009, the Company acquired some parts of the Australian business operations of Bristol Myers Squibb Australia (BMSA) and associated assets (BMS Australian Business). The BMS Australian Business consists of the pharmaceutical and technical operations division, which operates out of BMS Australia's Noble Park facility. * * * The Troubled Company Reporter-Asia Pacific reported on April 23, 2010, that Sigma Pharmaceuticals Ltd. may face a damages claim of more than $200 million from shareholders over its annual loss and alleged breach of continuous disclosure obligations. Tom Tarasewicz, the vice-president of the US litigation funder Comprehensive Legal Funding, said his firm had been approached by Australian institutional shareholders in Sigma, who were concerned about the company's long trading halt and the end- of-year adjustments it was about to make to its 2010 accounts. A damages bill above $200 million would be nearly half of Sigma's market capitalization of $572 million or almost three times its 2009 full-year profit, The Sydney Morning Herald had noted. Sigma reported a net loss of AU$389 million for the year ended Jan. 31, 2010. The Wall Street Journal reported that Sigma said competition in the generic drug sector was keener than it had anticipated and slashed the book value of key assets. The Journal noted Sigma also revealed that the company had breached debt covenants and that creditors were insisting on assets sales to pay them AU$90 million by Nov. 30, 2010. SOUVLAKI HUT: Franchised Food Company Attacks Sale Process ---------------------------------------------------------- Smart Company reports that Franchised Food Company Chief Executive Stan Gordon has attacked the administrator of Souvlaki Hut, claiming the sale of the chain to a group of investors led by former Video Ezy Chief Daryl McCormack should have been more transparent. But BDO administrator Laurie Fitzgerald said Mr. Gordon is simply upset his company did not offer the winning bid, says Smart Company. According to Smart Company, Mr. Gordon said that the administrators should have conducted a more open process when deciding to sell the company. "There was no tender process, nothing was put out. They put it into administration and sold it three minutes later. It is a disgrace," Smart Company quoted Mr. Gordon as saying. Smart Company discloses that Souvlaki Hut was placed into administration last week after former owners, John and Bill Fotiadis, experienced financial difficulties and threats of litigation from disgruntled franchisees. But Mr. Fitzgerald said Souvlaki Hut has been up for sale since May, and that Franchised Food Company was one of a few organizations interested in buying the company, Smart Company adds. Mr. Fitzgerald explained that when he took over as administrator, he had to make "the best decision" about how to keep the company afloat, according to Smart Company. According to the report, Mr. Fitzgerald said Mr. Gordon is simply upset that he missed an opportunity, and points out that the deal will still need to be approved by creditors. An initial creditors meeting will be held on December 13, with another meeting to be held on January 14. Founded in 2005, Souvlaki Hut is a fast food franchise based in Australia. THORNE BUILDERS: BSA to Help Homeowners as Firm Collapses --------------------------------------------------------- Daily Mercury reports that the Building Services Authority was trying to contact the owners of 25 homes being constructed by Thorne Builders, after the company was put into liquidation. According to Daily Mercury, BSA spokesman Ian Jennings said the authority would work with affected consumers to help them get their homes completed as quickly as possible. Daily Mercury relates that Mr. Jennings said extra staff would be sent to Mackay to meet owners and assess their entitlements under the BSA's statutory Home Warranty Insurance Scheme. Mr. Jennings said it was unknown how much money tradespeople and suppliers would be able to recoup, notes Daily Mercury. "A lot of suppliers and trade contractors will be owed money. (The liquidators) SV Partners will determine how much during the next few weeks," Mr. Jennings said, according to Daily Mercury. Mr. Jennings said he believed the global financial crisis had contributed to the demise of Thorne Builders, which was owned by Peter Thorne, Daily Mercury reports. About Thorne Builders Established by Ivan Thorne in 1963, Thorne Builders -- http://www.thornebuilders.com.au/--are building contractors based in Mackay, Queensland. ================ H O N G K O N G ================ MANDOLIN HK: Middleton and Power Appointed as Liquidators --------------------------------------------------------- Messrs. Edward Simon Middleton and Fergal Thomas Power on Nov. 10, 2010, were appointed as liquidators of Mandolin Hong Kong Limited. The liquidators may be reached at: Messrs. Edward Simon Middleton Fergal Thomas Power 27/F Alexandra House 16-20 Chater Road Central, Hong Kong MAX TECH: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on November 17, 2010, to wind up the operations of Max Tech Trading Limited. The official receiver is E T O'Connell. MINIGRAND LIMITED: Court Enters Wind-Up Order --------------------------------------------- The High Court of Hong Kong entered an order on November 17, 2010, to wind up the operations of Minigrand Limited. The official receiver is E T O'Connell. NEWCON INDUSTRIAL: Court Enters Wind-Up Order --------------------------------------------- The High Court of Hong Kong entered an order on November 17, 2010, to wind up the operations of Newcon Industrial Limited. The official receiver is E T O'Connell. NGAN'S INVESTMENT: Court Enters Wind-Up Order --------------------------------------------- The High Court of Hong Kong entered an order on October 5, 2010, to wind up the operations of Ngan's Investment Company Limited. The official receiver is E T O'Connell. PO LOK: Court Enters Wind-Up Order ---------------------------------- The High Court of Hong Kong entered an order on November 17, 2010, to wind up the operations of Po Lok Metal Company Limited. The official receiver is E T O'Connell. POWER MAX: Court to Hear Wind-Up Petition on January 12 -------------------------------------------------------- A petition to wind up the operations of Power Max Design Limited will be heard before the High Court of Hong Kong on January 12, 2011, at 9:30 a.m. Mak Ching Shan Limited filed the petition against the company. The Petitioner's Solicitors are: Szwina Pang, Edard Li & Co Suite 1408, 14th Floor Prince's Building 10 Chater Road Central, Hong Kong RISE GROUP: Holds First Meetings on December 3 ----------------------------------------------- Creditors and contributories of Rise Group Technology Limited held their first meetings last December 3, 2010, at 4:00 p.m., and 4:30 p.m., respectively at 10th Floor, Dah Sing Life Building, 99-105 Des Voeux Road Central, in Hong Kong. At the meeting, Chiu Koon Shou, the company's liquidator, gave a report on the company's wind-up proceedings and property disposal. SHIU HUNG: Court to Hear Wind-Up Petition on January 5 ------------------------------------------------------ A petition to wind up the operations of Shiu Hung Industrial Limited will be heard before the High Court of Hong Kong on January 5, 2011, at 9:30 a.m. Fu Wah Trading (HK) Limited filed the petition against the company. The Petitioner's Solicitors are: Benny Kong & Yeung Unit 2901, 29th Floor Far East Finance Centre 16 Harcourt Road Hong Kong SIM HA: Court to Hear Wind-Up Petition on January 19 ---------------------------------------------------- A petition to wind up the operations of Sim Ha International Limited will be heard before the High Court of Hong Kong on January 19, 2011, at 9:30 a.m. First Rex Enterprises Limited filed the petition against the company. The Petitioner's Solicitors are: Ford, Kwan & Company Suite 3304, 33rd Floor Tower 2, Nina Tower No. 8 Yeung Uk Road Tsuen Wan, New Territories SERENA ELECTRICAL: Court to Hear Wind-Up Petition on December 29 ---------------------------------------------------------------- A petition to wind up the operations of Serena Electrical Mfg (China) Company Limited will be heard before the High Court of Hong Kong on December 29, 2010, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company. The Petitioner's Solicitors are: King & Wood 9th Floor, Hutchison House Central, Hong Kong SUPERIOR PRECESION: Yeung Mui Kwan David Appointed as Liquidator ---------------------------------------------------------------- Mr. Yeung Mui Kwan David on September 9, 2010, was appointed as liquidator of Superior Precesion Engineering Company Limited. The liquidator may be reached at: Mr. Yeung Mui Kwan David 14/F San Toi Building 137-139 Connaught Road Central, Hong Kong SUPREME ART: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on November 15, 2010, to wind up the operations of Supreme Art Limited. The official receiver is E T O'Connell. TEN PLUS: Lui and Yuen Appointed as Liquidators ----------------------------------------------- Messrs. Kennic Lai Hang Lui and Yuen Tsz Chun on July 27, 2010, were appointed as liquidators of Ten Plus Limited. The liquidators may be reached at: Messrs. Kennic Lai Hang Lui Yuen Tsz Chun 5th Floor Ho Lee Commercial Building 38-44 D'Aguilar Street Central, Hong Kong TONIC APPLIANCES: Court to Hear Wind-Up Petition on December 15 --------------------------------------------------------------- A petition to wind up the operations of Tonic Appliances Limited will be heard before the High Court of Hong Kong on December 15, 2010, at 9:30 a.m. Applica Consumer Products, Inc. filed the petition against the company. The Petitioner's Solicitors are: Barlow Lyde & Gilbert 19th Floor, Cheung Kong Center 2 Queen's Road Central, Hong Kong UNIVERSAL SHEEN: Creditors Get 100% Recovery on Claims ------------------------------------------------------ Universal Sheen Group Limited, which is in compulsory liquidation, will pay full and final dividend to its creditors on December 10, 2010. The company will pay 100% for ordinary claims. The company's liquidator is: Lau Siu Hung Room 1909-10, 19/F Nan Fung Tower 173 Des Voeux Road Central, Hong Kong WELLICO DEVELOPMENT: Court Enters Wind-Up Order ----------------------------------------------- The High Court of Hong Kong entered an order on November 17, 2010, to wind up the operations of Wellico Development Limited Trading As Tung Cheuk Association Limited. The official receiver is E T O'Connell. WIDEST SKY: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on October 8, 2010, to wind up the operations of Widest Sky Group Hong Kong Limited. The company's liquidator is Pui Chiu Wing. ========= I N D I A ========= ABHAY ISPAT: ICRA Assigns 'LBB+' Rating to INR34.50cr Bank Debt --------------------------------------------------------------- ICRA has assigned an "LBB+" rating to the INR34.50 crore fund-based bank facilities of Abhay Ispat (India) Pvt. Ltd. The outlook on the long-term rating is 'stable'. ICRA has also assigned an "A4+" rating to the INR7.00 crore short-term loan of AIPL. The fund-based and non-fund based bank facilities of AIPL are completely inter-changeable. The assigned ratings take into account the limited value addition in the business of AIPL and the highly fragmented nature of the industry, leading to intense competition, both of which result in thin operating and net profitability; the risks associated with the cyclicality inherent in steel prices, which are further heightened by the company?s moderate inventory levels required to sustain operations. Nevertheless, the ratings factor in favorably the extensive experience of the promoters in the flat steel trading business; positive demand outlook for the flat steel products; the company?s long standing relationship with large domestic suppliers, ensuring regular supply of raw material; its diverse customer base, which reduces sales concentration risk and the company?s comfortable coverage indicators and return of capital employed. Incorporated in 2002, AIPL is engaged in trading of a wide variety of flat steel products like hot rolled (HR) coils, cold rolled (CR) coils, galvanized sheets and colour coated sheets. AIPL has established relationships with leading domestic steel suppliers in the flat steel products segment. The company also imports material from China and Russia. Its warehousing facilities are located at Taloja in the Raigad district of Maharashtra. Recent Results In 2008-09, AIPL made a net profit of INR 1.04 crore on the back of net sales of INR 193.58 crore. As per the provisional results for 2009-10, AIPL recorded a profit before tax of INR 7.67 crore on the back of net sales of INR 362.49 crore. BHUVANESWARI COTSPIN: ICRA Assigns 'LBB' Rating to INR15.3cr Loan ----------------------------------------------------------------- ICRA has assigned "LBB" rating to the INR15.3 crore term loan facilities and the INR11.5 crore fund based facilities of Bhuvaneswari Cotspin India Private Limited. The outlook on the LBB rating is stable. ICRA has also assigned "A4" rating to the INR1.0 crore fund based sub-limit facilities and the INR2.0 crore non-fund based sub-limit facilities of the Company. The ratings consider the experience of promoters in the textile industry, integrated nature of the operations of the companies in the group and the Company's proximity to the textile hub of Tirupur, which saves on logistics cost. The ratings also consider the small scale of Company's operations, which restrict scale economics and financial flexibility, intense competition in the highly fragmented industry structure which lowers pricing power of spinners and the vulnerability of the textile industry to competition from low-cost countries/from countries with relatively lower foreign exchange fluctuations. BCIPL is established by Mr. N. Loganathan, who has an experience of over three decades in textile industry. BCIPL is primarily engaged in the production of cotton yarn (of the hosiery variety). Incorporated in 2003, the Company has an installed capacity of 19,200 spindles. Its manufacturing facility is located in Kangeyam near Tirupur (Tamil Nadu). The promoters and their relatives hold 100 per cent stake in the Company. CARONA INDUSTRIES: CRISIL Reaffirms 'B' Rating on INR189.1MM Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Carona Industries Pvt Ltd continue to reflect CIPL's weak financial risk profile marked by high gearing and weak debt protection indicators, small scale of operations, limited track record, and exposure to volatility in raw material prices. These weaknesses are partially offset by the company's average operating efficiency, and its promoters' experience in the textile industry. Facilities Ratings ---------- ------- INR189.10 Million Long-Term Loan B/Stable (Reaffirmed) INR50.00 Million Cash Credit B/Stable (Reaffirmed) INR10.00 Million Packing Credit P4 (Reaffirmed) INR25.00 Million Letter of Credit P4 (Reaffirmed) INR5.40 Million Bank Guarantee P4 (Reaffirmed) Outlook: Stable CRISIL believes that CIPL will maintain its stable business risk profile over the medium term on the back of its promoters' industry experience. The outlook may be revised to 'Positive' if the company's capital structure improves, and its revenues and accruals increase substantially. Conversely, the outlook may be revised to 'Negative' if CIPL contracts large debt to fund its capital expenditure, or if its revenue and margins decline steeply, affecting its cash flows. Update CIPL's revenues in 2009-10 (refers to financial year, April 1 to March 31) have been higher than CRISIL?s expectations due to higher capacity utilization. Furthermore, the company has booked revenues of INR221 million in the first half of 2010-11, and expects to report revenues of INR550 million for the year. Moreover, its operating margin in the current year is expected to be higher as the increase in its scale of operations will lead to lower fixed costs. However, CIPL's liquidity continues to be constrained by high utilization of bank limits. CIPL posted a provisional profit after tax (PAT) of INR0.3 million on net sales of INR301 million for 2009-10, as against a PAT of INR0.7 million on net sales of INR215 million for 2008-09. About Carona Industries Set up in 2006 by Mr. K Saminathan, CIPL began commercial production of cotton yarn in 2008. The company?s unit at Tirupur (Tamil Nadu) has a capacity of 14,400 spindles. DURAIRAJ MILLS: ICRA Reaffirms "LBB" Rating on INR38cr Term Loan ---------------------------------------------------------------- ICRA has reaffirmed the "LBB" rating outstanding on the INR38.0 crore (enhanced from INR22.4 crore) term loan facilities, the INR15.0 crore (enhanced from INR9.5 crore) fund based facilities of Durairaj Mills Limited. The outlook on the long term rating is Stable. ICRA has also reaffirmed the "A4" rating outstanding on the INR5.0 crore (enhanced from INR4.0 crore) non-fund based facilities and INR7.2 crore fund based facilities of DML. The rating reaffirmation takes into account the company's financial risk profile characterized by high gearing and stretched debt coverage indicators; and vulnerability to intense competition in a fragmented industry given the commoditized nature of the grey cotton yarn, which limits the pricing power. Also, the company's plan for debt-funded capex towards addition of spindles is likely to stretch the gearing levels further. The ratings also factor in the company's relatively small scale of operations, high vulnerability to cotton price movements, which have been highly volatile owing to demand/supply factors and intense competition prevailing in the highly fragmented industry. However, the ratings also consider experience of the promoter in spinning business and the limited churn rate of customers aided by long standing relationship. Revival in demand scenario for cotton yarn and improved outlook for the spinning industry are expected to result in better realisations for yarn manufacturers. About Durairaj Mills Durairaj Mills Limited was incorporated in 1983 and is primarily engaged in production of Hosiery and Warp yarn. Initially, the group business of cotton trading and ginning was started in 1950s by Mr. N. Duraiswamy Naidu, later his sons (Mr. P.D. Damodaran, Mr. D. Kanagaraj, Mr. D. Jayachandran and Mr. D. Ramaswamy) promoted the Company. Apart from spinning business, the directors also derive income from agricultural activities. The Company's manufacturing unit is ISO-9002 certified and is located in Annur, Coimbatore with an installed capacity of 34,704 spindles. The Company produces combed, carded and slub yarns of count ranging from 8s to 60s. FRONTIER KNITTERS: CRISIL Reaffirms 'C' Rating on INR100MM Debt --------------------------------------------------------------- CRISIL's ratings on the bank facilities of Frontier Knitters, a Frontier group entity, continue to reflect delay by Frontier in meeting its term loan obligations; the delay has been caused by Frontier's weak liquidity. Facilities Ratings ---------- ------- INR100.00 Million Cash Credit C (Reaffirmed) INR80.00 Million Foreign Bills C (Reaffirmed) Discounting INR37.00 Million Standby Limit C (Reaffirmed) INR159.60 Million Long-Term Loan D (Reaffirmed) INR5.00 Million Bank Guarantee P4 (Reaffirmed) The ratings also factor in the Frontier group's below-average financial risk profile, marked by a low net worth, high gearing, and weak debt protection measures; and customer concentration in its revenue profile. However, the group benefits from its established presence in the knitted garments industry. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Frontier and Inditex Processor Pvt Ltd (Inditex). This is because Frontier and Inditex, together referred to as the Frontier group, are part of the textile value chain, and have a common management, and operational and financial linkages. Update The Frontier group's net sales have increased by 22 per cent in 2009-10 (refers to financial year, April 1 to March 31) over the previous year, primarily backed by the increase in its customer base. The group's net profit margin marginally increased to 1.4 per cent in 2009-10 as compared with 1 per cent in 2008-09. Its liquidity remains weak on account of high working capital requirements and cash flow mismatches, which resulted in delay in repayment of its term loan. The Frontier group reported a profit after tax (PAT) of INR17.3 million on net sales of INR1.25 billion for 2009-10, as against a PAT of INR10.4 million on net sales of INR1.03 billion for 2008-09. About the Group Set up in 1988 at Tirupur (Tamil Nadu), the Frontier group is promoted by Mr. Mohammed Thajutheen. Frontier, the group's flagship entity, manufactures and exports a wide range of knitted garments. Inditex, set up in 2006, dyes fabric and yarn and derives 50 per cent of its revenues from Frontier. The group has an installed capacity to manufacture 4 million pieces of garments per annum. ING VYSYA: Fitch Affirms Individual Rating at 'D' ------------------------------------------------- Fitch Ratings has downgraded India's ING Vysya Bank Limited's National Long-term rating to 'AA-(ind)' from 'AA(ind)' and the rating on its INR3.9 billion subordinated debt to 'AA-(ind)' from 'AA(ind)'. The agency has also affirmed ING Vysya's Individual rating at 'D' and Support rating at '3'. The Outlook on the National LT rating is Stable. The downgrades reflect Fitch's view that ING Vysya's National LT rating is now driven by its stand-alone financial performance rather than institutional support as was the case in the past. While Fitch continues to factor in a moderate probability of support from the parent - ING Bank (foreign currency Long-term Issuer Default Rating: 'A+', Outlook: Stable, Individual Rating 'C'), the agency also recognizes that the parent has been reviewing its business portfolio to limit the number of its markets and simplifying the group structure and operations. The National LT rating is now solely based on ING Vysya's stand-alone credit profile, reflected in its Individual Rating of 'D', and which takes into account its domestic franchise and sound capitalization. The Stable Outlook reflects ING Vysya's improving financials and growing competitiveness compared to other banks with 'D' Individual ratings. ING Vysya's profitability ratios have improved steadily over the years, reflecting the successful implementation of the bank's strategies for controlling costs and growing low-cost retail deposit base. The bank's return on asset improved to 0.84% (annualized) at end-September 2010 (H111, FY10: 0.74%), however, its profitability remained below that of larger private banks, mainly due to a lower net interest margin and higher operating costs (cost-to-income ratio of 56.9% at end-September 2010). The bank aims to leverage its existing infrastructure to expand its business over the next few quarters; this should help to raise ING Vysya's operating profitability and reduce the cost-to-income ratio to more competitive levels. ING Vysya's gross non-performing loan ratio declined to 2.91% at end-H111 (FY10: 2.96%) due to better overall credit risk management and winding down of the bank's unsecured retail asset book. Fitch believes that with the management's increased focus on secured assets, its asset quality should improve over the near- term. The bank's current account-savings account ratio continues to improve steadily (35.9% in H111 vs 32.6% at FY10) on the back of its efforts to build up its retail liabilities portfolio. At end- September 2010, ING Vysya's total capital adequacy ratio was 13.5% and the Tier 1 capital ratio was 9.4%. Its capitalization is likely to remain adequate over the medium-term on the back of support from ING, and the expectation of moderate capital requirement. ING Vysya's Individual and thereby its National LT ratings could be upgraded in the event of a significant and sustained improvement in its profitability, capitalization and other credit matrices consistent with a 'C/D'-rated bank. The National LT rating could face downward pressure in the event of a marked deterioration in risk management or funding profile. ING Vysya's lower tier 2 subordinated bonds have been rated at the same level as its National LT rating based on Fitch's "Criteria for Indian National Ratings of Bank Hybrids and Subordinated Debt", dated January 18, 2010. ING Vysya was established as The Vysya Bank Limited in 1930. It was rechristened in 2002 after ING acquired a 44% stake. Traditionally a lender to small and medium enterprises, the bank has, since then, scaled up its corporate and consumer banking franchise. ING Vysya uses the "ING" brand, logo, and colours. Its network of 490 branches is concentrated in South India. MYSORE PAPER: CRISIL Cuts Rating on INR450MM Cash Credit to 'C' --------------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of The Mysore Paper Mills Ltd to 'C/P4' from 'B/Negative/P4+'. Facilities Ratings ---------- ------- Rs.450 Million Cash Credit Limit C (Downgraded from 'BB/Negative') Rs.550 Million Letter of Credit P4 (Downgraded from 'P4+') Rs.10 Million Bank Guarantee P4 (Downgraded from 'P4+') The downgrade reflects the decline in MPM's revenues and significant deterioration in its profitability. The company reported negative operating margins for both its paper and sugar divisions for the six months ended September 30, 2010; this is in continuation to losses incurred in 2009-10 (refers to financial year, April 1 to March 31). This has resulted in a significant weakening in MPM's financial risk profile and steep erosion in its net worth, resulting in the company having to make a reference to the Board for Industrial and Financial Reconstruction. CRISIL believes that MPM will continue to incur losses over the medium term because of less-than-adequate realizations and poor operating efficiency, resulting in further deterioration in MPM's financial risk profile. The ratings reflect MPM's very weak financial risk profile, its presence in extremely competitive and commoditised segments of paper industry, and poor operating efficiency. These rating weaknesses are partially offset by the benefits that MPM is likely to reap from the steady demand prospects for the domestic writing and printing paper (WPP) segment over the medium term, MPM's access to low-cost captive wood plantations for manufacture of WPP and newsprint (NP), and the financial support the company receives from the Government of Karnataka (GoK). About Mysore Paper MPM was founded in May 1936 by the Maharaja of the erstwhile State of Mysore. In November 1977, GoK acquired a controlling interest in the company. As on March 31, 2010, GoK owned 64.7 per cent of MPM's equity shares; the remainder was held by financial institutions and the general public. MPM is an ISO-14001-certified company, producing NP, WPP, and sugar at its plant at Bhadravati in the Shimoga District of Karnataka. The company has an installed capacity to produce 75,000 tonnes per annum (tpa) of NP and 30,000 tpa of WPP; it has sugarcane crushing capacity of 2500 tonnes per day. MPM is the only company in India to have a sugar factory as an integrated part of a paper mill, wherein bagasse, a sugar by-product, is used as raw material for manufacturing WPP. The company also has a captive power plant. MPM has announced plans to increase its sugar producing capacity and upgrade its paper and power units. For 2009-10, MPM reported a net loss of INR772 million on total income of INR3.08 billion, against a net profit of INR163 million on total income of INR4.33 billion for 2008-09. For the six months ended September 30, 2010, MPM has reported, on provisional basis, a net loss of INR399 million on total income of INR1.47 billion, against a net loss of INR293 million on total income of INR1.65 billion for the corresponding period of the previous year. NAVBHARAT EXPLOSIVES: CRISIL Reaffirms 'B+' Rating on INR50MM Debt ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Navbharat Explosives Company Ltd continue to reflect NECL's weak liquidity, below- average financial risk profile marked by small net worth and low interest coverage ratio, working-capital-intensive operations, and customer concentration in revenue profile. These weaknesses are partially offset by NECL's promoters' experience in the explosives business. Facilities Ratings ---------- ------- INR50.00 Million Cash Credit B+/Stable (Reaffirmed) INR15.00 Million Letter of Credit P4 (Reaffirmed) INR60.00 Million Bank Guarantee P4 (Reaffirmed) Outlook: Stable CRISIL believes that NECL's liquidity will remain weak over the medium term. The outlook may be revised to 'Positive' if NECL increases its scale of operations significantly, while improving its profitability, thereby increasing its cash accruals, or improves its liquidity by way of equity infusion by promoters. Conversely, the outlook may be revised to 'Negative' if NECL's operating margin declines, or the company undertakes a large, debt-funded capital expenditure programme, further weakening its liquidity. About Navbharat Explosives Set up in 1983 by Mr. Vijay Kumar Singh, NECL manufactures bulk and cartridge explosives. The company is managed by Mr. Vishal Kumar Singh, son of Mr. Vijay Kumar Singh. NECL has a manufacturing unit in Abhanpur (Chhattisgarh), and two support plants: one each in Dhanpuri (Madhya Pradesh) and Korba (Chhattisgarh). The company has capacity to manufacture 12,500 tonnes of cartridge explosives and 20,000 tonnes of bulk explosives per annum. NECL reported a profit after tax (PAT) of INR3.8 million on an operating income of INR189.0 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR3.0 million on an operating income of INR146.0 million for 2008-09. NAVBHARAT FUSE: CRISIL Reaffirms 'D' Rating on INR122MM Term Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Navbharat Fuse Company Ltd continue to reflect delays by NFCL in servicing its term debt. The delays have been caused by NFCL's weak liquidity. Facilities Ratings ---------- ------- INR212.50 Million Cash Credit D (Reaffirmed) INR122.0 Million Proposed Term Loan D (Reaffirmed) INR80.00 Million Letter of Credit P5 (Reaffirmed) INR125.00 Million Bank Guarantee P5 (Reaffirmed) NFCL has a weak financial risk profile marked by high gearing and weak debt protection metrics, and working-capital-intensive operations. However, the company continues to benefit from its promoters' experience in the explosives business. NFCL, set up in 1999, manufactures explosives and accessories. It has capacity to manufacture 24,000 tonnes per annum (tpa) of cartridge explosives and 36,000 tpa of bulk explosives. In 2003-04 (refers to financial year, April 1 to March 31), the company diversified into manufacturing steel by setting up a sponge iron plant with a capacity of 6000 tpa. NFCL reported a profit after tax (PAT) of INR10.8 million on an operating income of INR888.6 million for 2009-10, against a PAT of INR52.1 million on an operating income of INR963.6 million for 2008-09. RAVIAN ENGINEERS: CRISIL Places 'B' Rating to INR41.7MM Term Loan ----------------------------------------------------------------- CRISIL has assigned its 'B/Stable' rating to the bank facilities of Ravian Engineers (India) Pvt Ltd. Facilities Ratings ---------- ------- INR20.00 Million Cash Credit B/Stable (Assigned) INR41.70 Million Term Loan B/Stable (Assigned) INR3.00 Million Standby Line of Credit B/Stable (Assigned) The rating reflects REIPL's weak financial risk profile marked by small net worth, high gearing, and weak debt protection metrics, small scale of operations, and exposure to customer concentration risks. These rating weaknesses are partially offset by the extensive experience of REIPL's promoters in the tube-bending industry and the company's diverse business risk profile, catering to automotive components and steel furniture industries. Outlook: Stable CRISIL believes that REIPL's financial risk profile will remain weak over the medium term because of its depressed cash accruals and small scale of operations. The outlook may be revised to 'Positive' if there is a significant increase in REIPL's scale of operations or the company generates more-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile deteriorates, most likely because of a delay in increasing sales from its furniture unit, which is currently operating at less than 50 per cent of its capacity. About Ravian Engineers REIPL was promoted in 1981 as a partnership firm, Ravian Industries, by the Karmarkar, Dixit, and Desai families in Pune. The firm was reconstituted as a private limited company in 1992; the business from the partnership firm was transferred to REIPL in 2006-07 (refers to financial year, April 1 to March 31). Mr. Ravindra Karmarkar, Mr. Vishwas Dixit and Mrs. Sushma Desai are the directors of the company. REIPL manufactures steel furniture parts and automobile components using tube-bending technology. REIPL has two manufacturing units: one each in Bhosari and Pirangut in Pune (Maharashtra). The plant in Pirangut, which started commercial operations in 2008-09, is manufactures steel furniture such as beds, bunk beds, dining tables, chairs, and sofas. The plant at Bhosari manufactures automobile components such as exhaust pipes, and air-intake system pipes. In the furniture segment, REIPL?s key customer is Godrej and Boyce Manufacturing Company Ltd. In the automobile segment, REIPL is a supplier to players such as Fleetguard Filters Pvt Ltd, Mahle Filter Systems (I) Pvt Ltd, and Laxmi Rickshaw Body Pvt Ltd, who in turn supply to original equipment manufacturers such as Bajaj Auto Ltd, Ashok Leyland Ltd, and Tata Motors Ltd. REIPL reported a net loss of INR1.8 million on net sales of INR110.7 million for 2009-10, against a net loss of INR5.5 million on net sales of INR105.5 million for 2008-09. RUKMANI INFRA: CRISIL Assigns 'D' Rating to INR20 Million Loan -------------------------------------------------------------- CRISIL has assigned its 'D/P5' rating to Rukmani Infra Projects Pvt Ltd's bank facilities. The rating reflects delay by RIPPL in servicing its term loan; the delay has been caused by RIPPL's weak liquidity. Facilities Ratings ---------- ------- INR50.00 Million Cash Credit D (Assigned) INR20.00 Million Term Loan D (Assigned) INR230.00 Million Bank Guarantee P5 (Assigned) RIPPL has small scale of operations and is exposed to intense competition in the infrastructure industry; the company's financial profile is expected to deteriorate further due to on going debt funded capex, and high revenue exposure to core economic activity and the cyclical capital goods sector. RIPPL, however, benefits from its promoters' experience in the infrastructure business and established relationships with customers. Set up in 2003 as a sole proprietorship firm, RIPPL (formerly, Rukmani Engineering Works) was reconstituted as a partnership firm in 2005, and as a private limited company in 2008. The company, set up by Mr. Udaynath Sahoo, his wife Mrs. Mausami Sahoo, and his brother Mr. R K Sahoo, undertakes jobwork for fabrication and installation of heavy structures for thermal, steel, and power plants; it also is into erection of boilers. The company also undertakes maintenance contracts for heavy structures and boliers. It has recently started a fabrication unit in Angul (Orissa). RIPPL reported a profit after tax (PAT) of INR21 million on net sales of INR502 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR9 million on net sales of INR203 million for 2008-09. SAI COMPUTERS: CRISIL Assigns 'BB+' Rating to INR110MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its 'BB+/Stable/P4+' ratings to Sai Computers Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR110.0 Million Cash Credit Limit BB+/Stable (Assigned) INR15.0 Million Standby Line of Credit BB+/Stable (Assigned) INR90.0 Million Letter of Credit/ Bank Guarantee P4+ (Assigned) The ratings reflect SCPL's small scale of operations, exposure to intense competition in the transformers industry, working-capital- intensive operations, and limited financial flexibility because of small net worth and moderately high gearing. These rating weaknesses are partially offset by SCPL's promoter's industry experience, the company's diversified customer base, and adequate debt protection metrics, supported by comfortable operating margin. Outlook: Stable CRISIL believes that SCPL's scale of operations will remain small and its financial flexibility will remain restricted because of its small net worth and moderately high gearing over the medium term. The outlook may be revised to 'Positive' if SCPL increases its scale of operations and improves its capital structure. Conversely, the outlook may be revised to 'Negative' if the company undertakes larger-than-expected debt-funded capital expenditure programme, thereby weakening its capital structure, or there is pressure on its cash accruals. About Sai Computers Set up in 1983 by the father of Mr. Girish Kumar, SCPL was into data processing for electricity bills. Subsequently, Mr. Girish Kumar joined the business, and in 1990, the company diversified into manufacturing power and distributing transformers, while continuing its data processing activities. SCPL has two manufacturing units in Meerut (Uttar Pradesh). It manufactures transformers in the range of 5 kilovolt amperes (kVA) to 10 megavolt amperes (MVA). The company caters to diverse industries, and to engineering, procurement, and construction (EPC) contractors in the transformers segment; it also provides billing services to public sector power distribution companies. SCPL reported a profit after tax (PAT) of INR9.4 million on net sales of INR284.0 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR10.9 million on net sales of INR271.0 million for 2008-09. SURYAUDAY SPINNING: CRISIL Cuts Rating on INR206.4MM Loan to 'D' ---------------------------------------------------------------- CRISIL has downgraded its ratings on Suryauday Spinning Mills Pvt Ltd?s bank facilities to 'D/P5' from 'B/Negative/P4'. The downgrade reflects SSMPL's current delay in servicing its term loan obligations; the delay has been caused by SSMPL's weak liquidity. Facilities Ratings ---------- ------- INR206.40 Million Long-Term Loan D (Downgraded from 'B/Negative') INR72.00 Million Cash Credit Limit D (Downgraded from 'B/Negative') INR10.00 Million Foreign Bills P5 (Downgraded from 'P4') Discounting Limit SSMPL has a weak financial risk profile marked by low Networth and high gearing levels, and is exposure to risks relating to volatility in raw material prices, intense competition in the polyester staple yarn industry, and supplier concentration. However, SSMPL derives benefits from the industry experience of its promoters. Established in August 2005 by Mr. Brij Gopal Asawa, SSMPL manufactures polyester staple yarn. The company is located at Lingojiguda (Andhra Pradesh) and has a capacity of 14,300 spindles. SSMPL manufactures yarn of counts ranging from 3.5s to 35s. It procures raw material (polyester fibre) from its associate, Srinath Trading Agencies, which is a commission agent for Reliance Industries Ltd's (rated 'AAA/Stable/P1+' by CRISIL) polyester fibre products in Andhra Pradesh. SSMPL sells its products through commission agents to textile players and conveyor-belt manufacturers. SSMPL posted a provisional profit after tax (PAT) of INR4.1 million on net sales of INR424.3 million for 2009-10 (refers to financial year, April 1 to March 31), as against a PAT of INR4.4 million on net sales of INR394.7 million for 2008-09. TORQUE AUTOMOTIVE: ICRA Assigns 'LBB+' Rating to INR28cr Bank Debt ------------------------------------------------------------------ ICRA has assigned a rating of "LBB+" to the INR28.0 crore fund- based limits and INR7.0 crores term loans of Torque Automotive Private Limited. The outlook on the rating is 'stable'. ICRA has also assigned a rating of "A4+" to the INR 9.0 crores non fund based bank facilities of TAPL. The ratings factor in the established track record of TAPL's promoters in the automobile industry, its established position in Gujarat, being the sole authorized dealer of Skoda Auto India Limited (Skoda Auto) in the State and the largest dealer of Skoda Auto in India (in terms of total car sales in 2009-2010). The ratings are however constrained by stable but low profitability indicators for TAPL as margins on vehicles, spares, service and accessories are controlled by Skoda Auto, susceptibility of revenues to lower growth/slowdown in the passenger car market And limited financial flexibility as is evident from high gearing, moderate debt protection indicators and stretched cash flow position. Moreover the company has a limited operational track record of only three years and entry of new dealerships can lead to pressure on margins. Torque Automotive Private Limited was promoted by Mr. Kurin Amin and Mr. Zankar Solanki in 2007. TAPL is the authorized dealer of Skoda Auto India Limited in the state of Gujarat and is engaged in the sale of new cars, servicing of vehicles and sale of spare parts. Till FY 2008-09, the promoters of TAPL operated 3 auto dealerships across Gujarat through TAPL in Ahmedabad, Blitz Auto Private Limited in Surat and Autogem Private Limited in Baroda. These three companies were the only authorized dealerships of Skoda in state of Gujarat. However in FY 2008-09 the promoters decided to withdraw the Skoda dealership from the other two companies. Presently TAPL is the only authorised dealership of Skoda for the entire state of Gujarat. The company has ten showrooms/workshops located across Gujarat in Baroda, Surat, Mehsana, Vapi, Rajkot, Ahmedabad, Bhavnagar, Anand and Gandhidham About Torque Automotive Torque Automotive Private Limited was established in 2007. TAPL is the authorized dealer of Skoda Auto India Limited in the state of Gujarat engaged in the sale of new cars, servicing of vehicles and sale of spare parts. Presently TAPL is the only authorized dealership of Skoda for the entire state of Gujarat. The company has ten showrooms/workshops located across the state of Gujarat. Recent Results The company achieved a turnover of INR149.5 crores during FY2009-10. The operating margins of the company stood at 3.8% whereas net profit margins were at 1.0%. ================= I N D O N E S I A ================= ARPENI PRATAMA: Bondholders Reject Request For Standstill Deal -------------------------------------------------------------- Bloomberg News reports that investors in dollar bonds of PT Arpeni Pratama Ocean Line, the Indonesian shipping company downgraded in September after missing a coupon payment, declined the company's request for a so-called standstill agreement. According to the report, the company said in a statement to the Singapore stock exchange on December 6 that it hasn't received agreements from enough holders of its 8.75% notes due 2013, and so is considering its options while holding talks with a potential "strategic investor." Bloomberg, citing Director Ronald Nangoi's e-mailed response to questions, says the company hopes "in due course" to gain sufficient support from a "sounding board" committee of bondholders to enable it to make further attempts to gain consent. According to Bloomberg, a person with direct knowledge of the matter said on Dec. 2 that Arpeni Pratama asked investors to give it until the end of February to reorganize and pay a US$6.2 million coupon originally due Nov. 3 without taking legal action or trading the notes. Bloomberg says the company was cut to RD from C by Fitch Ratings on Sept. 21, indicating a missed payment. Arpeni Pratama has the equivalent of US$566 million in bonds and loans maturing through 2049, according to data compiled by Bloomberg. Bloomberg discloses that the company said in an Indonesian stock exchange announcement on Oct. 8 the company signed a term sheet with a strategic investor on Oct. 4 that would help it recapitalize. The strategic investor may invest as much as US$60 million via a convertible bond while another US$70 million would come from a share issue, notes Bloomberg. Agreement on a standstill couldn't be reached after one group of bondholders asked to be paid a fee for acceptance, the person familiar with the matter said Monday, according to Bloomberg. Based in Jakarta, Indonesia, PT Arpeni Pratama Ocean Line Tbk -- http://www.apol.co.id/-- is a marine shipping company. The company's activities include bulk and liquid transportation services. Arpeni operates a fleet of general-purpose specialist, such as their tweendecker MV Alas, which is designed to transport dry cargoes such as plywood and agricultural products. BANK DANAMON: Fitch Affirms 'BB+' Issuer Default Rating ------------------------------------------------------- Fitch Ratings has affirmed PT Bank Danamon Indonesia Tbk's National Long-term rating at 'AA+(idn)', Long-term foreign currency Issuer Default Rating at 'BB+', Short-term foreign currency IDR at 'B', Individual Rating at 'C/D', and Support Rating at '3'. The Outlook is Stable. "Danamon's ratings reflect the bank's relatively healthy financial profile underpinned by strong underlying profitability, strong capitalization, satisfactory asset quality, and access to resources from its majority shareholder," says Iwan Wisaksana, Director in Fitch's Financial Institutions Group. Temasek Holdings, the investment arm of the Singapore government ('AAA'/Stable), maintains majority interest in the bank through fully-owned Asia Financial (Indonesia). In Fitch's opinion, Temasek's majority ownership and management control of Danamon suggest there is a moderate propensity to support the bank if required. Additionally, as the sixth-largest bank in Indonesia (about 4% of system assets), state support is also possible albeit within the government's fiscal constraints. Fitch also notes that intense competition which is pressuring profitability remains a risk, especially if risk adjusted returns are compromised. Indeed, a weakening of profitability and asset quality, in conjunction with a lower Tier 1 capital buffer would be negative for the bank's ratings. Danamon's Tier 1 and total Capital Adequacy Ratios remained strong at 15.4% and 16.4% respectively in 3Q10. The ratios were lower than 2009 levels due to strong loan growth and the implementation of Basel II. Fitch believes the current level of Tier 1 capital helps serve as reasonably healthy protection against potential knock-on effects should there be a renewed global slowdown. Net interest margin is likely to remain one of the highest in the industry because of its focus on high yield micro loans, although it has declined due to intense competition. NIM in 3Q10 was 10.6% (2009: 11.1%) based on Fitch's calculation. Profitability remains strong as return on assets and return on equity in 3Q10 stood at 3.0% and 19.7%, respectively. Despite the bank's sizeable exposure to the low income segment, Fitch notes that the bank has managed growth well as asset quality remains reasonably sound. Non-performing loans declined to 3.1% of gross loans at end-3Q10 (3Q2009: 4.0%), and remained below the industry average due to proactive recovery efforts supported by healthy economic conditions. Loan loss reserves covered 101% of NPLs at end-3Q10, which were a satisfactory level, but notably below the average of its peers (2009: 141%). In Fitch's view, maintaining these levels of reserves is important for the bank's credit fundamentals, given its customer profile and strong loan growth. Danamon's loan-deposit ratio rose to 104% in 3Q10 (2009: 89%), the highest among its peers, as loans grew faster than deposits. Despite the above average LDR, management believes the bank's excess liquidity of about IDR4.5trn mitigates funding/liquidity risk. The bank is also focused on collecting deposits, particularly low cost deposits (CASA). As a percentage of total deposits, CASA rose to 39% in 3Q10 from 31% in 3Q09. Established in 1956 and listed in 1989, Danamon was nationalized by the Indonesian government in 1999 following the Asian financial crisis and sold to Asia Financial (Indonesia) in 2003. Asia Financial (Indonesia) owned 67.42% of Danamon at end-September 2010 and is in turn fully-owned by Fullerton Financial Holdings, a financial holding company of Temasek Holdings. BANK OCBC: Fitch Affirms Issuer Default Ratings at 'BB+' -------------------------------------------------------- Fitch Ratings has affirmed PT Bank OCBC NISP Tbk's Long-term foreign and local currency Issuer Default Ratings at 'BB+', Short- term foreign currency IDR at 'B', National Long-term rating at 'AAA(idn)', Individual Rating at 'C/D', and Support Rating at '3'. The Outlooks on the Long-term rating are Stable. The rating on OCBC NISP's seven-year rupiah subordinated bond III 2010 has been affirmed at 'AA(idn)'; which is two notches below the bank's National Long-term rating to reflect the issue's cumulative coupon deferral features. The affirmations of OCBC NISP's National, International and Support ratings reflect continuing strong commitment and alignment with its financially strong parent bank, OCBC Bank (OCBC, 'AA- /Stable'), including name sharing and operational alignment in key areas. OCBC is Singapore's second-largest bank by assets and largest bank by market capitalization in November 2010. Fitch expects the bank to benefit from OCBC's financial support, such as liquidity and funding if the need arises. Any change in OCBC's ownership and commitment to support OCBC NISP, would have a negative impact on the latter's National and International ratings. As these developments are unlikely to happen in the near-term, the Outlook is Stable. The affirmation of the bank's Individual Rating is underpinned by its relatively stable asset quality, satisfactory profitability with enhanced market share of lower cost deposits and satisfactory capital position -- factors important for its credit profile given the increasingly competitive environment and still uncertain global economy. A weakening of OCBC NISP's asset quality along with a significant weakening in its tier 1 capital buffer, particularly if there is a renewed economic slowdown, would be negative for its Individual Rating. The merger between OCBC NISP and Bank OCBC Indonesia (one of OCBC's subsidiaries) will be effective in January 2011. Fitch expects that this will provide synergistic gains, given the complementary strengths of OCBC NISP's SME and retail lending portfolio, and OCBC Indonesia's corporate banking capabilities. Following this merger, OCBC's stakes will increase to 85.1% (based on financial statement performance as of October 15, 2010) without any management changes. The bank's reported non-performing loan ratio declined to 3.0% of gross loans at end-September 2010 after reaching a peak of 3.9% at end-September 2009. The lower NPL ratio was due to relatively stable reported corporate and commercial/SME NPLs as well as a larger loan base. Due to its focus on secured loans, provision cover (81.6% of NPLs at end-9M10) tends to be lower at OCBC NISP compared with several of the larger peers' average. The bank's capital position remained good with tier-1 capital adequacy ratio of 13.0% at end-9M10 (total CAR: 17.0%), although lower than in year end 2009 of 15.4% (total CAR: 18.0%), due to strong loan expansion and the gradual phasing in of Basel II requirements (10% operational risk in 9M10). The management advised that CAR will improve to 18.1% after the merger. Fitch expects the bank to benefit from OCBC's financial support, such as liquidity and funding if the need arises. OCBC NISP's profitability improved in 9M10 as net interest margins benefited from a better deposit mix and robust loan growth, while provision charges fell following more favorable economic conditions this year. Customer deposits, which were 6.1% higher than that in end-2009, funded approximately 79.7% of total assets. As at 9M10, low cost funds accounted for 60.2% of total deposits, up from 56.1% in 2009 and 44.3 % in 2008, reflecting its improving deposit mix, improving deposit profile and growing deposit franchise. Nevertheless, its Loan Deposit Ratio increased to 78.5% at end- 9M10 (end-2009: 72.4%), due to the strong loan growth of 15.1% in the first nine months of 2010. Established in 1941, OCBC NISP was previously owned and prudently managed by the Surjaudaja family, and weathered the 1997-1998 Asian crisis without a state bailout. OCBC, which acquired 22.5% of OCBC NISP in mid-2004, now owns 81.9% of the latter. ========= J A P A N ========= JLOC 41: Moody's Downgrades Rating on Class D1 Notes to 'C' ----------------------------------------------------------- Moody's Japan K.K has downgraded its rating on the Class D1 Note issued by JLOC 41. The complete rating actions follow. -- Class D1, downgraded to C (sf) from Ca (sf); previously on September 28, 2010 downgraded to Ca (sf) from Caa3 (sf) -- Deal Name: JLOC 41, LLC -- Class: Class A through D3 Notes -- Issue Amount (initial): JPY 23.36 billion -- Dividend: Floating -- Issue Date (initial): June 12, 2008 -- Final Maturity Date: February, 2015 -- Underlying Asset (initial): Three non-recourse loans backed by property trust certificates -- Originator: Morgan Stanley Japan Securities Co., Ltd. (as of the issue date) -- Arranger: Morgan Stanley Group (as of the issue date) JLOC41, effected in June 2008, represents the securitization of three liquidating loans. The Originator transferred the loans to the issuer SPE, which issued the Class A through D3 Notes and then sold them to investors. The Notes are rated by Moody's. In this transaction, any loss on the loans will be allocated in the reverse order of sequential pay, starting with the Class D of the Notes. When a loan incurs a loss, the subordinated portion of the loan will decrease, accordingly decreasing its corresponding class of the Junior Note (Class C and D); if a loss exceeds the Junior Note, the excess will be allocated to Class B (or Class A if Class B has been reduced to zero). Each class of the Junior Notes can incur losses only from its corresponding loans. All three loans have defaulted and have been under special servicing, one since March 2009, the other two, since October 2009. One loan (comprising 36.4% of the initial balance) was recovered through the sale of its underlying properties and the exercise of a purchase option by a related party. Losses were realized in August 2010. Another loan (comprising 41.4% of the initial balance) was recovered through the sale of all of its underlying properties. The Servicer is currently calculating the final recovery and loss amounts. The remaining loan (comprising 22.2% of the initial balance) has been under special servicing, in accordance with the asset disposition plan of July 2010. Rating Rationale The current rating action reflects the result of a write-down on the Class D1 Note due to losses on the remaining balance of the loan (comprising 41.4% of the initial balance). 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. JLOC XXX: Fitch Places Bond Ratings on Negative Watch ----------------------------------------------------- Fitch Ratings has placed four classes of trust beneficiary interests from JLOC XXX Trust due April 2014 on Rating Watch Negative, and simultaneously withdrawn the rating on the Class X TBIs. The transaction is a Japanese multi-borrower type CMBS securitization. The details of the rating actions are: -- JPY35.72bn* Class A TBIs 'AAsf'; placed on RWN; -- JPY17.8bn* Class B TBIs 'Asf'; placed on RWN; -- JPY19.9bn* Class C TBIs 'BBsf'; placed on RWN; and -- JPY20bn* Class D TBIs 'CCCsf'/Recovery Rating 'RR4'; placed on RWN. * as of December 2, 2010 -- Class X TBIs (dividend-only), rating of 'AAAsf' with a Stable Outlook has been withdrawn. The Class A to D TBIs have been placed on RWN due to concerns related to the property disposition proceedings on a liquidation- type underlying asset, together with concerns on the deterioration in operations and cash flow performance of another underlying asset, which is effectively backed by a hotel portfolio. Some property dispositions to date have been at prices lower than assumed by the agency, and recovery prospects for the remaining portfolio could fall short of underlying asset balance. Fitch will conduct further analysis of the portfolio over the coming weeks, and expects to complete the review with the aim to resolve the RWN status on both classes within two months. The rating on the dividend-only Class X TBIs, which addresses only the likelihood of receiving dividends while principal on the related TBIs remains outstanding, has been withdrawn. This transaction was originally a securitization of five TMK (Tokutei Mokuteki Kaisha specified bonds and a senior portion TBI of a satellite trust, backed by a specified bond, and ultimately backed by a total of 125 commercial properties located throughout Japan. To date, four specified bonds have been fully redeemed, with several properties within the remaining specified bonds being, or in the process of being sold in recent months. The transaction is currently backed by 30 properties. JLOC XXX: Fitch Puts Ratings on Notes on Negative Watch ------------------------------------------------------- Fitch Ratings has placed both classes of JLOC XXX Satellite Trust's mezzanine trust beneficiary interests due April 2014 on Rating Watch Negative. The transaction is a Japanese single- borrower type CMBS securitization. The details of the rating actions are: -- JPY8.3bn* Class 1 Mezzanine TBIs 'CCCsf'/Recovery Rating of 'RR6'; placed on RWN; and -- JPY1bn* Class 2 Mezzanine TBIs 'CCCsf'/Recovery Rating of 'RR6'; placed on RWN. * as of December 2, 2010 Both classes have been placed on RWN due to concerns of deterioration in operations and cash flow performance of the underlying asset, effectively backed by a hotel portfolio. Fitch will conduct further analysis of the portfolio over the coming weeks, and expects to complete the review with the aim to resolve the RWN status on both classes within two months. Both TBIs, which are pari passu in payment priority, are effectively backed by the junior portion TBI of a satellite trust, which is secured by a TMK specified bond whose collateral consists of 23 commercial properties. =============== M A L A Y S I A =============== GULA PERAK: Reports MYR33.07 Mil. Net Loss For September 30 Qtr --------------------------------------------------------------- Gula Perak Berhad disclosed with the Bursa Malaysia Securities its unaudited financial results for the quarter ended September 30, 2010. The Company reported MYR33.07 million net loss on MYR7.76 million of revenues in the quarter ended September 30, 2010, compared to MYR2.79 million net loss on MYR7.53 million of revenues in the same quarter of 2009. At September 30, 2010, the Company's consolidated balance sheet showed MYR289.90 million in total assets and MYR504.60 million in total liabilities, resulting in a stockholders' deficit of MYR217.20 million. The Company's consolidated balance sheets at September 30, 2010, also showed strained liquidity with MYR49.58 million in total current assets available to pay MYR447.36 million in total current liabilities. About Gula Perak Gula Perak Berhad is a Malaysia-based company. The Company is engaged in construction works, trading in construction materials and property development. The principal activities of the subsidiary companies consist of hotel operations and management, service apartment operations and management and property development. The Company operates in two segments: Hotel operations, which the Company owns and operates the Dynasty Hotel, Kuala Lumpur and Empress Hotel, Sepang, Selangor, and Construction and property development, which the Company is engaged in construction and development of industrial properties. Its subsidiaries include Dynawell Corporation (M) Sdn. Bhd., KSB Requirements & Rest Sdn. Bhd., Gula Perak Land Sdn. Bhd. and Dyna Enterprise International Ltd. Gula Perak Berhad has been listed as an Amended Practice Note 17 company as the Company was not able to provide a solvency declaration to Bursa Malaysia. JERNEH ASIA: Classified as Affected Listed Issuer Under PN17 ------------------------------------------------------------ Jerneh Asia Berhad has been considered as a Practice Note No. 17 company pursuant to PN17 of the Main Market Listing Requirements of Bursa Securities as the company suspended or ceased its major business or operations resulting from the disposal of its major business. On December 1, 2010, Jerneh Asia completed its proposed disposal of its 80% equity interest in Jerneh Insurance Berhad to Ace Ina International Holdings, Ltd (formerly known as Cigna International Holdings, Ltd) for MYR523.2 million. As a PN17 Company, JAB is required to: (i) within 12 months from the date of First Announcement: submit a regularization plan to the Securities Commission if the plan will result in a significant change in the business direction or policy of the Company; or submit a regularization plan to Bursa Malaysia Securities Berhad if the plan will not result in a significant change in the business direction or policy of the Company, and to obtain Bursa Securities' approval to implement the plan; (ii) implement the plan within the timeframe stipulated by the SC or Bursa Securities, as the case may be; (iii) announce within 3 months from the First Announcement, on whether the regularization plan will result in a significant change in the business direction or policy of JAB; (iv) announce the status of its regularization plan and the number of months to the end of the relevant timeframes on a monthly basis until further notice from Bursa Securities; (v) announce its compliance or non-compliance with a particular obligation imposed pursuant to PN17 of the Listing Requirements on an immediate basis; (vi) announce the details of the regularization plan which announcement must fulfill the requirements as set out in Paragraph 4.2 of PN17 of the Listing Requirements; and (vii) where JAB fails to regularize its condition, announce the dates of suspension and de-listing of its listed securities immediately upon notification of suspension and de-listing by Bursa Securities. Consequences of Non-Compliance If JAB fails to comply with the obligations to regularize its condition, Bursa Securities will: (i) suspend the trading of JAB's listed securities on the next market day after 5 market days from the date of notification of suspension by Bursa Securities; and (ii) de-list JAB subject to its right to appeal against the de-listing, which must be submitted to Bursa Securities within 5 market days from the date of notification of de-listing by Bursa Securities. The board is taking the necessary actions to formulate a plan to regularize the financial condition of the Company. About Jerneh Asia Jerneh Asia Berhad (KUL:JERNEH) is a Malaysia-based investment holding company. JAB operates in six segments: underwriting general insurance business; insurance brokerage; credit and leasing; trading in marketable securities; administration and management services, and investment holding. The general insurance division offers risk management services and has about 1,357 agents and 19 branches located in cities and towns in Peninsular Malaysia, Sabah and Sarawak. The insurance brokerage division provides insurance solutions for its corporate clients in Hong Kong, China and the Philippines. As of December 31, 2009, JAB's subsidiaries were Jerneh Insurance Berhad, Jerneh Credit Leasing Sdn Bhd, Jerneh Healthcare Services Sdn Bhd, Minsec Management Services Sdn Bhd, Jerneh Asia Reinsurance Limited, Jerneh Investment (HK) Limited, Taishan Insurance Brokers Limited, Taishan Insurance Brokers Philippines, Inc. and KRM Reinsurance Brokers Phils., Inc. TRACOMA HOLDINGS: Posts MYR11.09MM Net Loss in Qtr Ended Sept. 30 ----------------------------------------------------------------- Tracoma Holdings Berhad reported a net loss of MYR11.09 million on revenues of MYR39.29 million for the three months ended September 30, 2010, compared with a net loss of MYR2.31 million on revenues of MYR31.51 million for the same period ended September 30, 2009. At September 30, 2010, the Company's consolidated balance sheet showed MYR228.555 million in total assets, MYR259.60 million in total liabilities and MYR6.69 in government grant, resulting in a stockholders' deficit of MYR37.74 million. The company's consolidated balance sheet at September 30, 2010, also showed strained liquidity with MYR88.15 million in total current assets available to pay MYR144.16 million in total current liabilities. A full-text copy of the Company's quarterly report is available for free at: http://ResearchArchives.com/t/s?708c http://ResearchArchives.com/t/s?708d About Tracoma Holdings Tracoma Holdings Berhad is a Malaysia-based investment holding that is engaged in the provision of management services. The Company is a manufacturer and supplier of automotive parts and components. Some of its wholly owned subsidiary companies include Tracoma Sdn. Bhd., which is engaged in manufacturing of automotive components; Malaysian Die-Makers Sdn. Bhd., which is engaged in die making and servicing; Trends Mecha Sdn. Bhd., which is engaged in parts and car design, and Malaysian Farm Machinery Sdn. Bhd., which is engaged in assembling and distributing agricultural tractors. * * * Tracoma Holdings Berhad has been classified as an Affected Listed Issuer under Practice Note 17 of the Listing Requirements of Bursa Malaysia Securities Berhad. The company has triggered PN17's Paragraph 8.04 and Paragraph 2.1(a) as the consolidated shareholders' equity for the full financial year ended December 31, 2009, is less than 25% of the Company's issued and paid-up capital and such shareholders' equity is less than MYR12 million. VTI VINTAGE: Posts MYR1.35 Million Net Loss in Qtr Ended Sept. 30 ----------------------------------------------------------------- VTI Vintage Berhad posted a net loss of MYR1.35 million on revenue of MYR2.72 million for the quarter ended September 30, 2010, compared with a net loss of MYR2.94 million on revenue of MYR1.14 million in the same period last year. At September 30, 2010, the Company's consolidated balance sheet showed MYR53.75 million in total assets, MYR52.26 million in total liabilities and total stockholders' equity of MYR1.49 million. The company's consolidated balance sheet at September 30, 2010, showed strained liquidity with MYR9.57 million in total current assets available to pay MYR37.74 million in total current liabilities. A full-text copy of the Company's quarterly report is available for free at http://ResearchArchives.com/t/s?708e About VTI Vintage VTI Vintage Berhad is an investment holding company. It also provides management services to its subsidiaries. The Company, through its subsidiaries is principally engaged in the manufacturing and trading of roof tiles, investment holding and trading of roof tiles and roof related products, supply and laying of roof tiles and installation of roofing on a consignment basis and manufacture, supply and installation of steel related building materials. On February 25, 2010, VTI Vintage Berhad was classified as an Amended Practice Note 17 issuer based on the criteria set by the Bursa Malaysia Securities Bhd as it has triggered Paragraph 2.1 (a) of the PN17. ==================== N E W Z E A L A N D ==================== CRAFAR FARMS: Allan Crafar Loses Bid to Fend Off Eviction --------------------------------------------------------- The NZ Herald Online reports that financially-troubled dairy farmer Allan Crafar has failed in his bid to have a notice to evict him from one his home farm thrown out. Mr. Crafar headed his family's network of farms, known as Crafar Farms. According to the report, the receivers, KordaMentha, went to the High Court at Rotorua to have the family removed from their property, where Mr. Crafar claimed the family had signed a "lifetime" lease agreement with their company Plateau Farms in 2006. Yesterday, December 7, 2010, Mr. Crafar unsuccessfully sought to have the application from KordaMentha struck out in court in Rotorua, NZ Herald Online relates. NZ Herald Online notes that the lawyer acting for the receivers, Mark Sandelin, said: "Mr. Crafar's application to strike out the receivers' proceedings was dismissed, and the receivers have been told they are entitled to proceed with their case." Associate Judge Anthony Christiansen indicated the Crafar application lacked merit, Mr. Sandelin added. Mr. Sandelin, the report discloses, said that timeframes had not been set for hearing other aspects of the case involving seeking orders for the filing of further documents, discovery and inspections. However, a telephone conference has been set down for April 23, 2010, the report says. NZ Herald Online relates that Mr. Crafar, before the hearing, said the receivers had argued that the "lifetime" lease should not have been signed because it was to the detriment of the lender using the property as security. Mr. Crafar said he was negotiating with an American backer to trade his way out of debt, but it was not a quick process, the report adds. About Crafar Farms Crafar Farms, New Zealand's largest family owned dairy business, runs about 20,000 milking cows, and carries about 10,000 of other stock. The company employs 200 staff. Crafar Farms was placed in receivership by its lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson Finance. The banks are owed around NZ$200 million and put KordaMentha partners Michael Stiassny and Brendon Gibson in as receivers after Crafar Farms breached covenants on its loans. The New Zealand Herald said CraFarms' banks have been working with the Ministry of Agriculture and Forestry, Federated Farmers and Fonterra to ease the Crafars out of their business. This follows multiple convictions for environmental lapses and animal neglect in recent years and the revelation on September 28, 2009, from interest.co.nz of animal neglect on one of its large farms in the King Country near Benneydale. =============== T H A I L A N D =============== TMB BANK: Fitch Affirms 'BBB-' Long-Term Issuer Default Rating -------------------------------------------------------------- Fitch Ratings has affirmed TMB Bank Public Company Limited's Long- term foreign currency Issuer Default Rating at 'BBB-' and revised the Outlook to Stable from Negative. A complete list of rating actions is included at the end of this release. The affirmations of TMB's Individual and other ratings take into account its sizeable domestic franchise and solid capital, while the Stable Outlook on the Long-term foreign-currency IDR is based on the bank's improving profitability and asset quality. Although these aspects still remain weaker than peers, Fitch expects the bank to continue its momentum due to recent restructuring efforts in risk management and the improving economy. TMB's reported strong net profit growth of 73% yoy to THB2.4bn (return on assets of 0.6%) in 9M10, due mainly to lower provisions as the loan book has been contracting; although this appears to have stabilized with the bank reporting a modest qoq loan growth at end-September 2010, and expectations are that growth will rise in 2011. Asset quality, while improving, remains a key weakness. TMB's impaired loans declined to THB41.3bn or 11.6% of total loans at end-September 2010 (end-2009: THB54.4bn or 12.6% of total loans) due mainly to the THB9.3bn NPL sale in April 2010. The NPL ratio still remains high due in part to large loan book contraction of over 25% since 2007. Special mention loans , while also declining, still remained high at THB27bn or 7.6% of total loans at end-September 2010 (end-2009: 47.7bn or 12.9% of total loans). Additionally, TMB's loan loss reserves of THB21.8bn (52.8% of impaired loans) at end-September 2010 appear weak, indicating further provisioning risks, particularly given the high SML ratio, although migration rates from NPL to SML remain modest. Given the improving economic environment, asset quality is expected to continue to improve in 2011, further boosting earnings. TMB's funding and liquidity are stable. At end-September 2010, its loans/deposits ratio remained below 90%, while liquid assets/deposits and short-term funding remained high at about 30%. TMB's Tier 1 and total capital ratios were strong at 12.3% and 17.8%, respectively, at end-September 2010, providing a strong buffer to absorb losses, if needed. TMB's debt and hybrid security ratings are consistent with relevant criteria, and Fitch notes that these instruments are performing. Its hybrid Tier 1 security is rated five notches below its Long-term foreign currency IDR. While this is much wider than most other similar hybrids rated by Fitch in Thailand, the notching differential reflects its loss absorption trigger and its likelihood of being activated due to its modest profitability and risk of an increase in provisioning. According to the Bank of Thailand's regulations, if a bank reports a loss, the coupons can only be paid if the payment is approved by the BoT on a case-by- case basis, taking into account a commercial bank's financial strength, such as capital, profitability and retained earnings. A continued improvement in profitability and retained earnings, as well as the maintenance of strong capital levels, could therefore narrow the notching of the hybrid Tier 1 security, but this would most likely be dependent upon Fitch upgrading TMB's Individual rating. A significant improvement in performance and asset quality could positively affect the ratings. TMB is the seventh-largest commercial bank in Thailand with assets of THB565bn at end-September 2010. ING Bank NV ('A+'/'F1+'/Stable) is the largest shareholder with a 30% stake, followed by the Ministry of Finance at 26% and Singapore's DBS Bank at 7%. Fitch considers the probability of external support from the Thai government, if needed, to be moderate. The rating actions on TMB are: -- Long-term foreign currency IDR affirmed at 'BBB-'; Outlook revised to Stable from Negative; -- Short-term foreign currency IDR affirmed at 'F3'; -- Individual affirmed at 'C/D'; -- Support Rating affirmed at '3'; -- Support Rating Floor affirmed at 'BB+'; -- Foreign currency subordinated debt rating affirmed at 'BB+'; -- Foreign currency offshore hybrid Tier 1 security affirmed at 'B'; -- National Long-term rating affirmed at 'A+(tha)' with a Stable Outlook; -- National Short-term rating affirmed at 'F1(tha)'; -- National Short-term debt rating affirmed at 'F1(tha)'; and -- National subordinated debt rating affirmed at 'A(tha)'. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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/ Jan. 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 to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***