/raid1/www/Hosts/bankrupt/TCRAP_Public/101217.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Friday, December 17, 2010, Vol. 13, No. 249
Headlines
A U S T R A L I A
FMG RESOURCES: Moody's Assigns 'B1' Rating to Senior Debt
FORTESCUE METALS: Fitch Assigns 'BB+' Rating to Senior Notes
GRIFFIN COAL: Lanco Infratech Purchase of Firm Will Save 400 Jobs
KEITH SEEDS: Second Meeting of Creditors Set for Dec. 22
RELIANCE RAIL: Moody's Downgrades Senior Debt Ratings to 'B3'
C H I N A
DE CORO: Court Denies IRS' Bid to Alter Service of Notice
SEARCHMEDIA HOLDINGS: CSV Principals Resign from Board
* Fitch Affirms Ratings on China's Nine Mid-Tier Banks
H O N G K O N G
CITIC BANK: Fitch Affirms Support Rating Floor at 'BB'
NATIXIS COMMODITY: Members' Final Meeting Set for January 14
SINO STATES: Creditors Get 1.97195% Recovery on Claims
SPRING WIRELESS: Members' Final Meeting Set for January 14
STOMP HK: Creditors' Proofs of Debt Due December 31
YINMAIN METAL: Placed Under Voluntary Wind-Up Proceedings
I N D I A
ANAND EDUCATION: ICRA Assigns 'LB-' Rating to INR8cr Term Loan
ARKAY GLENROCK: ICRA Places 'LB+' Rating to INR6.3cr Term Loan
ASIAN TEA: CRISIL Reaffirms 'BB+' Rating on INR15MM Cash Credit
ENG'G PROFESSIONAL: CRISIL Reaffirms 'BB-' Rating on INR130MM Debt
GEETA ISPAT: CRISIL Assigns 'B+' Rating to INR40MM Cash Credit
JANALAKSHMI FINANCIAL: CRISIL Rates INR250MM Debentures as 'BB+'
JET AIRWAYS: Plans to Resume India-China Flights Next Year
KAYNES HOTELS: CRISIL Downgrades Rating on INR200MM Loan to 'B-'
KONARK STRUCTURAL: CRISIL Assigns 'BB+' Rating to INR52.5MM Loan
NAVDURGA ISPAT: CRISIL Upgrades Rating on Cash Credit to 'BB-'
OMJYOTI APPARELS: ICRA Assigns 'LBB' Rating to INR6.5cr Bank Debt
P L RAJU: CRISIL Reaffirms 'BB+' Rating on INR80MM Debt to 'BB+'
PANDESARA INFRASTRUCTURE: CRISIL Lifts Rating on Term Loan to 'B-'
PRAGATI ENTERPRISES: CRISIL Places 'BB+' Rating on INR40MM Debt
QVC EXPORTS: CRISIL Assigns 'BB-' Ratings to INR10MM Cash Credit
RIVAA EXPORTS: CRISIL Reaffirms 'BB-' Rating on INR87.8M Term Loan
SRUTI FILATEX: CRISIL Assigns 'BB-' Rating to INR49.5MM Term Loan
TRISTAR RETAIL: CRISIL Assigns 'B-' Rating to INR181.4MM Term Loan
I N D O N E S I A
BANK NEGARA: Fitch Affirms Issuer Default Rating at 'BB+'
J A P A N
PROMISE CO: Moody's Reviews 'Ba1' Long-Term Issuer Debt Ratings
M A L A Y S I A
LINEAR CORP: Receives Writ of Summons From Hong Leong Bank
NAM FATT: Creditors Confirms Appointment of Ferrier Hodgson
NAM FATT: Court of Appeal Grants Interim Stay Order
NAM FATT: Sells Land to Cengal Saujana For MYR21.1 Million
N E W Z E A L A N D
CAPITAL + MERCHANT: Directors Remanded For Court Hearing Next Year
GENEVA FINANCE: First Half Loss Narrows to NZ$950,000
PIKE RIVER: Receivers May Not Get Full NZ$100-Mln Insurance Payout
PIKE RIVER: NZ$1.5-Million Relief Fund Safe, Trustee Says
T A I W A N
CATHAY DUN: Fitch Maintains Negative Watch on All Certs.
V I E T N A M
VIETNAM SHIPBUILDING: Can't Make US$60M Debt Payment Due Next Week
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
- - - - -
=================
A U S T R A L I A
=================
FMG RESOURCES: Moody's Assigns 'B1' Rating to Senior Debt
---------------------------------------------------------
Moody's Investors Service has assigned a definitive B1 senior
unsecured debt rating for the US$1.5 billion guaranteed senior
notes issued by FMG Resources (Aug 2006) Pty Ltd, an indirect
wholly-owned subsidiary of Fortescue Metals Group Ltd.
Rating Rationale
The definitive rating on these debt obligations confirms the
provisional rating assigned on December 08, 2010. The outlook on
the rating is stable.
FMG Resources is issuing US$600 million of 6.375% guaranteed
senior unsecured notes due 2016 and US$900 million of 6.875%
guaranteed senior unsecured notes due 2018.
The bonds are guaranteed by Fortescue and each of its existing and
future direct and indirect restricted subsidiaries and will rank
pari passu with all other unsecured indebtedness of the note
guarantors.
Proceeds from the issue will be used to fund the company's
expansion program aiming to increase production capacity to
155mtpa.
The last rating action was on December 8, 2010 when Moody's
assigned a (P)B1 to the proposed senior unsecured notes of FMG
Resources (Aug 2006) Pty Ltd. The outlook on all ratings was
stable.
Fortescue Metals Group, based in Perth, is an iron ore producer
engaged in the exploration and mining of iron ore for export,
mainly to China.
FORTESCUE METALS: Fitch Assigns 'BB+' Rating to Senior Notes
------------------------------------------------------------
Fitch Ratings has assigned Fortescue Metals Group Limited's
US$600 million issuance of senior unsecured notes due
February 2016, as well as US$900 million senior unsecured notes
due February 2018 issued through FMG Resources (August 2006) Pty
Ltd, a final rating of 'BB+'. The final rating has been assigned
following receipt of final documentation conforming to information
already received.
The final rating matches Fitch's expected rating, which was
assigned on December 7, 2010, for US$800 million senior unsecured
notes due December 2017.
The increase in the final issue size has been assessed and has not
changed Fitch's rating.
On October 10, 2010, Fitch assigned Fortescue a Long-term foreign
currency Issuer Default Rating and senior unsecured rating of
'BB+'. The Outlook is Stable.
GRIFFIN COAL: Lanco Infratech Purchase of Firm Will Save 400 Jobs
-----------------------------------------------------------------
ABC Rural reports that an Indian infrastructure group Lanco
Infratech is going to acquire the assets of Griffin Coal.
Administrators Korda Mentha signed an agreement with Lanco
Infratech to sell the coal operations for an undisclosed amount,
according to ABC Rural. The report relates that the sale includes
Griffin's Collie coal mines in the south-west of the state, but
not the company's Bluewaters power stations.
ABC Rural notes that Korda Mentha's Brian McMaster said Lanco
Infratech is looking to expand Griffin's coal operations and will
retain all 400 employees. It's understood the deal is worth up to
AU$850 million, the report adds.
About Griffin Coal
Based in Australia, The Griffin Coal Mining Company Pty Ltd --
http://www.griffincoal.com.au/-- is engaged in coal mining and
processing. Griffin Coal operates major mines in the Collie area,
approximately 220 kilometers south east of Perth. The Company is
producing more than three million tons of coal per year. Griffin
Coal has operations at Ewington Mine, Muja Mine and Buckingham
Mine.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
January 4, 2010, Griffin Coal Mining Co. appointed Kordamentha as
Administrator. The coal supplier defaulted on an interest payment
in December 2009 to bondholders owed US$475 million and also
missed a payment to Australia's tax authority.
KEITH SEEDS: Second Meeting of Creditors Set for Dec. 22
--------------------------------------------------------
The second meeting of creditors of ACN 007 664 771 Pty Ltd,
formerly known as Keith Seeds Pty Ltd., will be held on December
22, 2010, at Keith Institute, Keith, South Australia.
John Hart and David Kidman of Ferrier Hodgson on November 22,
2010, were appointed as voluntary administrators of Keith Seeds.
The majority of the assets of the Company's business were sold to
PGG Wrightson Seeds (Australia) Pty Ltd prior to the voluntary
administrators' appointment. This included the name Keith Seeds.
Growers and Suppliers should contact the purchaser regarding
future arrangements.
A first meeting of creditors was held at the Keith Institute,
Keith, South Australia, on December 2, 2010, and no Committee of
Creditors was formed.
Keith Seeds Pty, Ltd. breeds, produces, processes, and markets
pasture and oil seeds, and specialized puse and legume products.
It also involves with contract production of various pasture seeds
and legumes for international clients. The company offers
birdseeds, French white millets, safflowers, cereals, wheat,
barley, oats, linseeds, canola, lucerne, medics, clovers, grasses,
pulse/legumes, beans, broad beans, chick peas, dun peas, faba
beans, lupins, vetch, lentils, spices, fenugreek, coriander, split
products, split faba beans, yellow split peas, red split lentils,
split broad beans, and channa dhall.
RELIANCE RAIL: Moody's Downgrades Senior Debt Ratings to 'B3'
-------------------------------------------------------------
Moody's Investors Service has downgraded Reliance Rail Finance Pty
Ltd's senior debt ratings to B3 from Ba3 and its subordinate debt
ratings to Caa2 from B2. The rating outlook is negative.
Ratings Rationale
"The downgrade reflects Moody's continued concerns surrounding the
potential for a funding gap from February 2012", says Paul
Ovnerud-Potter, a Moody's Vice President and Senior Credit
Officer, adding, "The rating downgrade also considers the risk
that the bank facility and potentially other debt would likely be
re-priced at a level that will substantially pressure RRF's
financial profile."
"RRF remains exposed to the financial profile of its two monoline
insurers, both of which continue to exhibit a weak credit
profile", Ovnerud-Potter says.
Based on Reliance Rail's legal advice, if both Syncora Guarantee
Inc. (rated Ca, developing outlook) and FGIC UK Limited (unrated)
were to become insolvent, then the banks may have the right to
cancel their funding commitments, if a majority of the banks
decided to take that action.
"We see a degree of credit linkage between Reliance Rail and its
monoline insurers", Ovnerud-Potter said, adding, "The downgrade
and continued negative outlook reflects Moody's view that the
uncertainty over Reliance Rail's credit profile, in the absence of
a committed solution to this potential issue, will likely become
much more heightened as the project draws closer to February 2012,
when the company is scheduled to draw on its bank facility".
"In Moody's view, a reservation of rights letter from the banks in
June this year suggests that Reliance Rail's banks may be
considering the circumstances in which they could cancel the bank
facility."
Moody's notes that Reliance Rail maintains that the banks'
reservation of rights letter itself does not assert an actual
default or represent a step towards the exercise of enforcement or
termination rights. Reliance Rail has also stated, based on
advice it has taken, that it believes that the banks have no
current rights to cancel the facility, particularly since Syncora
has re-commenced paying claims following the lifting of the 1310
Order.
Despite Syncora recently completing a remediation plan and re-
commencing claims payments, the financial profiles of both Syncora
and FGIC remain very weak.
"Reliance Rail's high financial leverage and its reliance on the
bank facility to complete the delivery phase of the project mean
that it has limited flexibility to overcome these potential
liquidity challenges. These problems are compounded by a complex
contractual structure, an exposure to future refinancing risk from
2015 onwards, and further delays in the delivery schedule."
Delivery phase progress has been further delayed and Reliance Rail
now expects to provide the first train set to Railcorp for
acceptance in January 2011. The prior guidance from the company
was for a December 2010 delivery. The revision means practical
completion - determined by Railcorp -- for the first train set
will be at least 9 months late.
Practical completion has been achieved for the Auburn maintenance
facility and the two required training simulators. In addition,
Moody's understands that successful testing of a pre-production
test vehicle has occurred and the commencement of track-testing of
two trains is underway. Progress continues to be made on
subsequent train sets. Moody's will look for evidence of delivery
of completed train sets on the already revised delivery schedule.
The ratings will likely be downgraded in the event of wrapper
insolvency or if the banks provide a more explicit indication that
they will likely cancel the A$357 million facility. Furthermore,
the ratings may also be downgraded if there is evidence of further
substantive delays in the delivery phase.
The ratings will likely be upgraded if the potential funding
challenges are resolved.
Reliance Rail Finance Pty Ltd is the funding vehicle for the
Reliance Rail Group. Reliance Rail Group was the successful
consortium appointed by Railcorp in 2006 to deliver the NSW
Rolling Stock public private partnership project. Reliance Rail
is in the process of manufacturing 78 eight-car "Waratah" trains
for the Sydney suburban rail network and has completed an
associated maintenance facility. Reliance Rail will also maintain
the trains and the maintenance facility from completion until
2043.
=========
C H I N A
=========
DE CORO: Court Denies IRS' Bid to Alter Service of Notice
---------------------------------------------------------
Judge William L. Stocks denied a request by the Internal Revenue
Service to alter or amend a court order approving the form and
manner of service of notice of Foreign Claims Procedure. The
Motion to Amend seeks entry of an amended Claims Procedure Order,
in the form of a clarification of the Claims Procedure Order so
that it is apparent that it does not apply to assets of De Coro
Limited that are located within the United States. The Motion to
Amend further states that the United States "is concerned that if
this Court's [Claims Procedure Order] pertained to [De Coro
Limited] assets within the United States, the United States could
be compelled to defend its federal tax claim in a foreign court
with respect to assets that are located within the United States."
On February 18, 2009, James Wardell and Chan Wai Dune were
appointed as the Provisional Liquidators to oversee the
administration and liquidation of De Coro Limited in insolvency
proceedings pending before the High Court of the Hong Kong Special
Administrative Region Court of First Instance, Companies (Winding-
Up) No. 93 of 2009, pursuant to the Hong Kong Companies Ordinance,
Chapter 32 of the Laws of Hong Kong.
De Coro Limited is a Hong Kong limited liability company formed on
December 11, 1996, and is the parent company and shareholder of
DeCoro USA, Ltd. DeCoro USA filed for Chapter 11 bankruptcy
(Bankr. M.D. N.C. Case No. 09-10846) on May 12, 2009.
On February 24, 2009, the Hong Kong Court entered an amended order
appointing the Provisional Liquidators and enumerating the powers
and duties of the Provisional Liquidators vis-a-vis the winding
down of the De Coro Group. The Appointment Order vests the
Provisional Liquidators with sole authority to administer the
winding down of Ltd. and its subsidiaries, including, without
limitation, Ltd. and USA.
The Provisional Liquidators filed a voluntary petition under
Chapter 15 of the Bankruptcy Code (Bankr. M.D. N.C. Case No.
09-10369) on March 5, 2009, seeking, inter alia, recognition of
the Hong Kong Proceeding as a "foreign main proceeding" as such
term is used in Chapter 15 of the Bankruptcy Code.
On March 11, 2009, the Bankruptcy Court entered an order granting
the provisional relief sought by the Provisional Liquidators. On
April 2, 2009, the Bankruptcy Court entered an order granting the
Chapter 15 Petition, recognizing the Hong Kong Proceeding as a
foreign main proceeding, and extending certain relief to the De
Coro Group.
The IRS filed Claim Number. 4-1 in the Chapter 15 Case, asserting
a total claim of $99,764,687 against Ltd., comprised of
$84,379,425 as an unsecured priority tax claim, and an additional
$15,385,262 as a general unsecured claim.
The IRS filed Claim Number 5-1 in the Chapter 15 Case, amending
the Original Claim, and asserting a total claim of $133,990,621
against Ltd., comprised of $118,605,359 as an unsecured priority
tax claim, and an additional $15,385,262 as a general unsecured
claim.
A copy of the Court's December 13 Opinion and Order is available
at http://is.gd/iMvSJfrom Leagle.com.
De Coro Limited engages principally in the production of leather
upholstered furniture in China for export to international
markets. De Coro makes its products at its facility in the
Longgang District of Shenzhen, China.
SEARCHMEDIA HOLDINGS: CSV Principals Resign from Board
------------------------------------------------------
On December 9, 2010, each of Earl Yen and Jianzhong Qu provided
notice to the SearchMedia Holdings Limited Board of Directors that
they were resigning as Board members effective immediately.
Mr. Yen, the founder and managing director of CSV Capital
Partners, and Mr. Qu, a principal of CSV Capital Partners, were
appointed by the representatives of the former stockholders of
SearchMedia International Limited, pursuant to a Voting Agreement
between SearchMedia Holdings Limited and certain stockholders.
About SearchMedia Holdings
Based in Shanghai, China, SearchMedia Holdings Limited (NYSE Amex:
IDI, IDI.WS) is a multi-platform media company operating primarily
in the out-of-home advertising industry and one of the largest
operators of integrated outdoor billboard and in-elevator
advertising networks in China. SearchMedia operates a network of
over 1,500 high-impact billboards with over 500,000 square feet of
surface display area and one of China's largest networks of in-
elevator advertisement panels consisting of approximately 125,000
frames in 50 cities throughout China. Additionally, SearchMedia
operates a network of large-format light boxes in concourses of
eleven major subway lines in Shanghai. SearchMedia's core outdoor
billboard and in-elevator platforms are complemented by its subway
advertising platform, which together enable it to provide a multi-
platform, "one-stop shop" services for its local, national and
international advertising clients.
The Company's balance sheet at December 31, 2009, showed
$99.8 million in total assets, $51.4 million in total liabilities,
and stockholders equity of $48.4 million.
SearchMedia reported a net loss of $22.6 million on $37.7 million
of revenue for the fiscal year ended December 31, 2009, compared
to a net loss of $35.1 million on $41.7 million of revenue for
fiscal 2008. The Company disclosed that its inability to generate
cash flows to meet its obligations due to the uncertainty of
achieving operating profitability on an annual basis and raising
required proceeds on reasonable terms, among other factors, raises
substantial doubt as to the Company's ability to continue as a
going concern.
* Fitch Affirms Ratings on China's Nine Mid-Tier Banks
------------------------------------------------------
Fitch Ratings affirmed the Individual and Support ratings of nine
of China's mid-tier banks, noting that although it has concerns
about the longer-term implications of the acceleration in credit
growth since 2008, these issues are already reflected in the
Individual Ratings, which currently range from 'D' to 'D/E' on a
scale of 'A' (high) to 'E' (low) for performing entities. A full
list of ratings can be found at the end of this rating action
commentary.
At end-June 2010, China's mid-tier banks ranged in size from US$90
billion to US$340 billion. These institutions tend to be more
aggressive than China's larger state banks, possess a higher level
of credit risk (71% of total assets versus 54% for the Big 5 state
banks), and attract less retail deposit funding (19% of total
customer deposits versus 47% for the Big 5). Like all banks in
China, mid-tier entities have a mismatch of assets and liabilities
from large holdings of demand deposits, which accounted for 47% of
total customer deposits in H110.
Although accelerating loan growth since 2008 has pressured the
capitalization of these banks, recent capital raising -- close to
CNY190bn in aggregate from the nine banks in 2009 and 2010 -- has
alleviated these strains for now. However, given their fast
growth relative to earnings, capital erosion remains a longer term
issue for these entities.
Capitalization could also come under pressure in the event of a
material deterioration in asset quality, although thus far,
headline asset quality indicators for these institutions have
continued to hold up, with NPLs falling to an average 0.9% of
total loans in H110 (2008: 1.4%). Nevertheless, the rapid pace of
credit growth relative to GDP, combined with a rising corporate
sector debt burden, raises questions about the medium-term outlook
for asset quality across the sector.
In recent months, the agency has highlighted concerns about the
growing amount of loans Chinese banks have been offloading through
sales of discounted bills and informal securitization. China's
mid-tier banks have been among the more active entities engaged in
these transactions, which not only contributes to the
understatement of credit growth and credit exposure at these
institutions, but can also lead to distortions in other financial
ratios. Concerns about the robustness of Chinese banks' data is
another key reason the Individual Ratings of these banks remain at
the lower end of the scale, despite being stronger than their
global peers on some metrics.
The three banks in this group with 'D/E' Individual Ratings,
namely Guangdong Development Bank, Hua Xia Bank and Shenzhen
Development Bank, historically have had thinner capitalization and
earnings, larger off-balance-sheet contingent liabilities, and
higher exposure to credit risk in their interbank portfolios than
their peers; these weaknesses are particularly evident at HXB and
SZDB. Recent capital raisings and asset quality improvements at
the three entities have been positive, but as yet do not in
themselves justify an upgrade to 'D'.
The Support Ratings of '2' for China Merchants Bank and China
CITIC Bank reflect the entities' ownership by large, fully state-
owned corporate conglomerates. Fitch believes these closer links
to the central government suggest a higher likelihood of support
from the state in the event of stress compared to other mid-tier
banks.
The current ratings of China's mid-tier banks are:
China Merchants Bank:
-- Individual rating affirmed at 'D'; and
-- Support rating affirmed at '2'.
China CITIC Bank:
-- Individual rating affirmed at 'D'; and
-- Support rating affirmed at '2'.
Shanghai Pudong Development Bank:
-- Individual rating affirmed at 'D', and
-- Support rating affirmed at '3'.
China Minsheng Banking Corporation:
-- Individual rating affirmed at 'D'; and
-- Support rating affirmed at '3'.
Industrial Bank:
-- Individual rating affirmed at 'D', and
-- Support rating affirmed at '3'.
Bank of Beijing:
-- Individual rating affirmed at 'D', and
-- Support rating affirmed at '3'.
Hua Xia Bank:
-- Individual rating affirmed at 'D/E'; and
-- Support rating affirmed at '3'.
Guangdong Development Bank:
-- Individual rating affirmed at 'D/E'; and
-- Support rating affirmed at '3'.
Shenzhen Development Bank:
-- Individual rating affirmed at 'D/E'; and
-- Support rating affirmed at '3'.
================
H O N G K O N G
================
CITIC BANK: Fitch Affirms Support Rating Floor at 'BB'
------------------------------------------------------
Fitch Ratings has affirmed the ratings of CITIC Bank International
Limited and the ratings of its outstanding debts. A detailed list
of the rating actions follows at the end of this commentary.
The affirmation of CBI's ratings primarily reflects its sound
balance sheet strength, adequate profitability and liquidity, as
well as its expanding franchise. Even though the bank's pace of
loan growth, particularly in mainland China, could give rise to
greater concerns if such a pace was to be sustained, Fitch does
not anticipate any material change in its financial profile over
the near-term. As such, the agency has maintained the Stable
Outlook on the bank's Long-term Issuer Default Rating.
CBI is a Hong Kong-based regional institution serving local,
mainland Chinese and other regional corporates in facilitating
trade and investment flows into and out of China. It has been one
of the most active Hong Kong-based banks to take advantage of the
territory's favourable geographical location to grow cross-border
business between China and the rest of the world. CBI
strengthened its collaboration with China CITIC Bank (Individual
rating 'D') following CNCB's acquisition of CITIC International
Financial Holdings Limited's (CBI's immediate holding company) 70%
stake from the CITIC Group in October 2009. Backed by the
deepened collaboration with CNCB, a booming property sector and
increased business activities in Hong Kong, CBI resumed its loan
growth of 17.9% in H110 after a slowdown in 2009. It also
continues to expand its network in Hong Kong with three new
branches set up so far in 2010 and seeks to expand its regional
presence in Asia, starting from Q410.
The bank's China expansion strategy has led to relatively
meaningful mainland China-related exposures (about 16% of its loan
portfolio versus less than 10% of most local peers), rendering its
credit profile potentially more vulnerable to any slowdown in the
Chinese economy. That said, CBI's sound capitalization (Tier-1
ratio: 10.3% at end-H110) provides adequate cushion to withstand
asset quality deterioration. These potential concerns are further
mitigated by the bank's enhanced risk management and likely
support from its parents, CNCB and Spain's Banco Bilbao Vizcaya
Argentaria (IDR 'AA-'/Stable) which owns a 30% stake of CBI.
However, Fitch has not explicitly factored in potential parental
support in its ratings; the bank's Support rating of '3' and
Support Rating Floor of 'BB' reflect the moderate possibility of
government support considering its relative systemic importance
within Hong Kong's banking system.
CBI's profitability recovered to an adequate level with operating
return on average assets of 1.0% and 0.9% in H110 and 2009
respectively (2008: 0.1%), as the write-downs on its structured
investment vehicles subsided. Meanwhile, the bank reported a
widening in its net interest margins in the period, benefiting
from better loan re-pricing and reduced funding costs. The strong
loan growth and decreased loan loss impairment charges against the
backdrop of the benign economy also contributed to the improvement
in profitability in H110.
CBI has managed to contain its impaired loans ratio at a
reasonably low level of 1.62% at end-H110, although the ratio
remains high compared with local peers. Its liquidity remains
adequate with a loan/deposit ratio of 77% at end-H110.
Fitch expects CBI to maintain a steady credit profile through 2011
amid the generally benign economy. Nonetheless, Fitch remains
concerned that any notable increase in mainland China exposures
and/or increased concentration in property-related lending in
China could negatively impact its credit profile and might prompt
a revision of its Outlook to Negative. That said, the agency does
not expect that to be the case in the near term. A rating
downgrade would be considered should the bank incur sustained
deterioration in its capitalization, asset quality and/or
liquidity strength, while significant improvements in business
franchise, profitability and credit quality controls are key
factors for CBI to attain higher ratings.
The ratings on CBI's debt instruments are consistent with the
agency's criteria and approach to rating such instruments which
are performing. The perpetual subordinated notes are rated two
notches below the bank's Long-term IDR, reflecting its status
within the capital structure and the bank's option to defer coupon
payments.
Established in 1922, CBI is a medium-sized bank with 30 branches
in Hong Kong. It also has a presence in Macau, China and the
United States.
Full list of rating actions for CBI:
-- Long-term Issuer Default Rating affirmed at 'BBB+'; Outlook
Stable;
-- Short-term Issuer Default Rating affirmed at 'F2';
-- Individual Rating affirmed at 'C';
-- Support Rating affirmed at '3';
-- Support Rating Floor affirmed at 'BB';
-- Senior unsecured debts affirmed at BBB+';
-- Subordinated debts affirmed at 'BBB';
-- Lower tier 2 subordinated debts affirmed at 'BBB'; and
-- Perpetual subordinated debts affirmed at 'BBB-'.
NATIXIS COMMODITY: Members' Final Meeting Set for January 14
------------------------------------------------------------
Members of Natixis Commodity Markets (Asia) Limited will hold
their final meeting on January 14, 2011, at 2:00 p.m., at 6th
Floor, Sunning Plaza, 10 Hysan Avenue, Causeway Bay, in Hong Kong.
At the meeting, Alan Chung Wah Tang and Wong Kwok Man, the
company's liquidator, will give a report on the company's wind-up
proceedings and property disposal.
SINO STATES: Creditors Get 1.97195% Recovery on Claims
------------------------------------------------------
Sino States Development Limited, which is in liquidation, will
declare the final dividend to its creditors on December 23, 2010.
The company will pay 1.97195% for ordinary claims.
The company's liquidators are:
Andrew George Hung
Yau sun Yu Sonia
Room 1501-2, 15/F., Podium Plaza
No. 5 Hanoi Road
Tsimshatsui, Kowloon
Hong Kong
SPRING WIRELESS: Members' Final Meeting Set for January 14
----------------------------------------------------------
Members of Spring Wireless Asia Pacific Limited will hold their
final meeting on January 14, 2011, at 10:00 a.m., at Room 403,
4/F, Wing On House, 71 Des Voeux Road Central, in Hong Kong.
At the meeting, Tam Chun Wan, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
STOMP HK: Creditors' Proofs of Debt Due December 31
---------------------------------------------------
Creditors of Stomp HK Limited, which is in creditors' voluntary
liquidation, are required to file their proofs of debt by
December 31, 2010, to be included in the company's dividend
distribution.
The company's liquidator is:
Wong Teck Meng
602 The Chinese Bank Building
61-65 Des Voeux Road
Central, Hong Kong
YINMAIN METAL: Placed Under Voluntary Wind-Up Proceedings
---------------------------------------------------------
At an extraordinary general meeting held on December 3, 2010,
creditors of Yinmain Metal Limited resolved to voluntarily wind up
the company's operations.
The company's liquidator is:
Chiu Wai Hon
Unit 201, 2/F
Malaysia Building
50 Gloucester Road
Wanchai, Hong Kong
=========
I N D I A
=========
ANAND EDUCATION: ICRA Assigns 'LB-' Rating to INR8cr Term Loan
--------------------------------------------------------------
ICRA has assigned a long term rating of 'LB-' to the INR8 Crore
term loan of Anand Education & Research Trust.
ICRA's rating takes into account the limited track record of the
promoters in field of education field and the intensely
competitive and highly regulated nature of the industry. The
rating is further constrained by weak debt protection metrics that
are likely to continue till the scale of operations of the trust
increase. Going forward, given the limited scale of operations
coupled with the trust's plans of incurring additional capex,
would result in increased external funding requirements. However,
the rating takes comfort from the favorable location, positive
demand outlook for the industry, the satisfactory occupancy levels
of the college in the first year of operations and significant
financial support demonstrated by the promoters in setting up the
college. Ability to attract students and competent faculty and
thereby ensure continued healthy occupancy over an enhanced
capacity will remain key rating driver.
Anand Education & Research Trustis a registered education trust
incorporated on 3rd July, 2007. The trust was promoted by Mr.
Manoj Mittal, who is running two publication houses in Jaipur
namely "Sanjeev Prakashan," well known for its "Sanjeev
Passbooks" and "Adarsh Prakashan." The Trust is presently
running "Anand International College of Engineering" affiliated
through AICTE. The college is spread over trust owned 12 acres of
land at Agra road around 14 km from Jaipur. The college started
its first session in July, 2010, with 60 seats each in five
engineering disciplines. Presently out of 300 seats, the first
batch occupies 236 seats.
ARKAY GLENROCK: ICRA Places 'LB+' Rating to INR6.3cr Term Loan
--------------------------------------------------------------
ICRA has assigned "LB+" rating to the INR 6.3 crore term loan
facilities and INR4.5 crore fund based facilities of Arkay
Glenrock Private Limited. ICRA has also assigned short term
rating of "A4" to the INR1.2 crore non-fund based facilities
and INR3.0 crore fund based facilities of AGPL.
The assigned rating factors in the limited scale of operations
restricting economies of scale, weak financial profile
characterized by low net worth, stretched working capital
intensity and negative free cash flows. The exit of its erstwhile
JV partner, Pisani Plc., which provided AGPL a ready customer
base in the past, has increased the off-take risk for its
products. The ratings also factor in the experienced management in
the granite industry.
AGPL is a small scale granite exporter (100% EOU) located in
Madurai (Tamil Nadu), involved in the processing of monuments and
slabs. AGPL has a total installed capacity of 20,000 square
metres per annum and 1,20,000 square meters per annum for
monuments and slabs respectively. The Company also has a
subsidiary Glenrock Enterprises, which is engaged in the trading
of granite slabs
Recent Results
For the half year ended September 2010, AGPL posted a profit after
tax (PAT) of INR0.7 crore on an operating income of INR9.9 crore.
ASIAN TEA: CRISIL Reaffirms 'BB+' Rating on INR15MM Cash Credit
---------------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Asian Tea &
Exports Ltd, which is part of the ATEL group, continue to reflect
the ATEL group's below-average debt protection metrics, customer
concentration in its revenue profile, and exposure to risks
associated with fragmentation in the tea industry. These rating
weaknesses are partially offset by the group's moderate business
risk profile, marked by established relationships with its
customers and a healthy capital structure.
Facilities Ratings
---------- -------
INR15.0 Million Cash Credit BB+/Stable (Reaffirmed)
(Reduced from INR20.00 Million)
INR120.0 Million Packing Credit P4+
(Enhanced from INR80.00 Million)
INR215.0 Million Bills Discounting P4+
(Enhanced from INR165.00 Million)
INR50.0 Million Standby Line of Credit P4+
(Enhanced from INR35.00 Million)
INR60.0 Million Letter of Credit P4+ (Reaffirmed)
(Reduced from 100.00 Million)
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of ATEL, and its wholly owned subsidiaries
Greenol Laboratories Pvt Ltd and Sarita Nupur Vyapaar Ltd,
together referred to as the ATEL group.
Outlook: Stable
CRISIL believes that the ATEL group will continue to benefit over
the medium term from its established relationships with customers
in the tea industry, and its adequate risk mitigation policies.
The outlook may be revised to 'Positive' if the group improves its
profitability, thereby improving its debt protection metrics, and
diversifies its customer base. Conversely, the outlook may be
revised to 'Negative' if the group undertakes a large, debt-funded
capital expenditure programme, or experiences a prolonged stretch
in its receivables.
Update
The ATEL group's sales and profitability for 2010-11 (refers to
financial year, April 1 to March 31) are expected to be in line
with CRISIL's estimates. The group is expected to report revenues
of around INR1.4 billion for the year, at an operating
profitability of around 3 to 4 per cent. Moreover, its gross
current assets are estimated to be around 100 days as on March 31,
2011, in line with CRISIL's expectations. Outstanding debtors
have reduced from INR280 million as on March 31, 2010 to INR170
million as on November 30, 2010. There are no significant issues
with receivables collection with less than 1 per cent of
receivables being greater than 6 months with no instances of bad
debts. 95 per cent of exports are backed by the export credit
guarantee scheme. However, the group continues to have high
customer concentration in its revenue profile, with most of its
sales to a single customer. Moreover, the group also has exposure
to unrelated ventures in real estate.
For 2009-10, the ATEL group reported a profit after tax (PAT) of
INR14 million on net sales of INR1.3 billion, against a PAT of
INR5 million on net sales of INR1.00 billion for the previous
year.
About the Group
Incorporated in 1994 as a public limited company for trading in
tea, ATEL is managed by Mr. Hariram Garg and his son, Mr. Sunil
Garg. Export sales constituted around 95 per cent of ATEL's
revenues in 2009-10. The group also trades in products such as
iron and steel bars, timber logs, and garments, though on a small
scale. Both GLPL and SNVL have investments in land and buildings
in West Bengal.
ENG'G PROFESSIONAL: CRISIL Reaffirms 'BB-' Rating on INR130MM Debt
------------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of
Engineering Professional Co Pvt Ltd at 'BB-/Stable/P4+'. The
ratings continue to reflect EPCPL's weak financial risk profile,
and customer and geographical concentration in its revenue
profile. These rating weaknesses are mitigated by the company's
strong turnover growth, backed by improving project execution
capabilities.
Facilities Ratings
---------- -------
INR130.0 Million Cash Credit Limit BB-/Stable (Reaffirmed)
INR20.0 Million Letter of Credit P4+ (Reaffirmed)
INR70.0 Million Bank Guarantee P4+ (Reaffirmed)
Outlook: Stable
CRISIL believes that EPCPL will maintain its established track
record in the execution of water distribution projects over the
medium term, backed by its healthy order book position. The
outlook may be revised to 'Positive' if EPCPL's financial risk
profile improves, on account of improvement in capital structure
and profitability. Conversely, the outlook may be revised to
'Negative' if EPCPL's financial risk profile deteriorates, either
because of large borrowings for capital expenditure or increase in
working capital requirements.
Update
EPCPL's revenues for 2009-10 (refers to financial year, April 1 to
March 31) have been higher than expected due to the execution of
new orders during the second half of the year. The company's
operating margin, though higher than expected, remains low, on
account of the absence of in-house manufacturing facility. EPCPL
has a total order book of around INR1400 million as on
December 1, 2010, which is expected to be executed over the next
12 months.
The company's financial risk profile remains weak, with high
gearing and small net worth. Over 2009-10, the promoters infused
additional equity of INR18 million, primarily for the purchase of
land worth INR10 million to set up its own manufacturing facility;
although, this project is expected to be undertaken only after a
few years. EPCPL's liquidity, marked by high bank limit
utilization and small cash accruals, is constrained by its large
working capital requirements. However, the absence of long-term
debt provides comfort.
EPCPL reported, on a provisional basis, a profit after tax (PAT)
of INR10.7 million on net sales of INR920.1 million for 2009-10
(refers to financial year, April 1 to March 31), against a PAT of
INR5.3 million on net sales of INR748.5 million for 2008-09.
About Engineering Professional
Set up in 1999, EPCPL is a project contracting company that
undertakes turnkey projects awarded by Gujarat Water Supply and
Sewerage Board for setting up water distribution systems. The
company is also into project management, and testing and
commissioning of pipelines in Gujarat. The company also
commissions gas pipelines for Oil and Natural Gas Corporation Ltd.
GEETA ISPAT: CRISIL Assigns 'B+' Rating to INR40MM Cash Credit
--------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank
facilities of Geeta Ispat.
Facilities Ratings
---------- -------
INR40.0 Million Cash Credit B+/Stable (Assigned)
INR30.0 Million Proposed LT B+/Stable (Assigned)
Bank Loan Facility
INR20.0 Million Letter of Credit P4 (Assigned)
The ratings reflect Geeta's modest financial risk profile, marked
by small net worth and weak debt protection metrics, low value-
addition and intensely competitive nature of the steel trading
business. These weaknesses are partially offset by the
longstanding industry experience of Geeta's promoters.
Outlook: Stable
CRISIL believes that Geeta will benefit over the medium term from
the extensive experience of its promoters in the steel trading
business. The outlook may be revised to 'Positive' if the firm is
able to generate better-than-expected operating revenues and
margins, and improves its capital structure, most likely through
equity infusion, leading to improvement in the debt protection
measures. Conversely, the outlook may be revised to 'Negative' if
the company's financial risk profile deteriorates due adverse
changes in working capital requirements or depressed profitability
due to high volatility in steel prices, or more-than-expected
withdrawal of capital from the firm.
About Geeta Ispat
Established in 2006 as a partnership firm by Mr. Kamal Poddar and
his son Mr. Vishal Poddar, Geeta trades in various steel products
such as Cold Rolled Close Annealed (CRCA), Color coated products,
and TMT bars. It is one of the few Mumbai-based authorised
dealers of JSW Steel Ltd and Uttam Galva Steel Ltd. The company
has its stock point at Taloja (Maharashtra) from where it caters
to customers, mainly in Maharashtra. Mr. Kamal Poddar, through his
association with other entities involved in steel trading
business, has more than three decades of experience in steel
trading business.
Geeta reported a profit after tax (PAT) of INR2.3 million on net
sales of INR1196 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR8.1 million on net sales
of INR634 million for 2008-09.
JANALAKSHMI FINANCIAL: CRISIL Rates INR250MM Debentures as 'BB+'
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Rating Watch with Negative
Implications' rating to the non-convertible debenture issue of
Janalakshmi Financial Services Pvt Ltd. CRISIL believes that
after resolution from watch, the rating is unlikely to fall below
'BB-'.
Facilities Ratings
---------- -------
INR250 Million Non-Convertible BB+/Rating Watch with
Debentures Negative Implications
The rating reflects JFSPL's small scale of operations, average
asset quality, weak earnings profile, and high regional
concentration. These rating weaknesses are partially offset by the
company's sound operational process and control systems, adequate
capitalisation, and experienced board and top management.
The 'Rating Watch with Negative Implications' reflects the
uncertainties associated with the microfinance sector after the
promulgation of the Andhra Pradesh (AP) ordinance (refer to
CRISIL's releases dated November 22, 2010, and October 25, 2010).
CRISIL believes that the implementation of the ordinance has
triggered a chain of events that can permanently damage the
business models of microfinance institutions (MFIs), by affecting
their growth plans and impairing their asset quality,
profitability, and capital-raising ability. The ordinance has
been unfavorable for the microfinance industry, resulting in a
precipitous drop in the collection efficiencies, especially those
operating in AP. Furthermore, access to funding for the sector
from the banking system has been severely constrained.
Consequently, liquidity and growth prospects of many MFIs,
including those operating outside AP have been adversely affected.
JFSPL does not have any operations in AP; hence, the company's
current collection rates have not been affected. However, like
many other MFIs, JFSPL relies on banks and financial institutions
for funding growth in business operations. Around 71 per cent of
its borrowings were from banks as on September 30, 2010. After the
implementation of the ordinance, JFSPL has received very modest
incremental funding from banks and is not facing any major
liquidity issues; CRISIL, however, believes that there will be a
significant slowdown in JFSPL's loan disbursements from earlier
expectations. Considering these factors, CRISIL believes that the
rating is unlikely to fall below 'BB-' after resolution from
watch.
JFSPL's scale of operations is modest compared to other small MFIs
in the non-banking financial company (NBFC) category. The company
had an outstanding loan portfolio of INR1072 million as on
September 30, 2010 (INR342 million as on September 30, 2009) and
disbursements of INR1070 million for the half year ended
September 30, 2010 (INR288 million for the half year ended
September 30, 2009). JFSPL operates in Karnataka, Tamil Nadu,
Rajasthan, Haryana, and Delhi, with Karnataka and Tamil Nadu
together accounting for around 91 per cent of its total loans
outstanding. CRISIL believes that the significant regional
concentration of operations makes JFSPL susceptible to adverse
credit-related events in the two aforementioned states, including
any changes in state level legislation. The company has plans to
increase its geographical diversification over the next three
years; the extent of diversification will remain a rating
sensitivity factor.
JFSPL had a portfolio at risk (PAR) greater than 90 days of 3.2
per cent as on March 31, 2010, which was significantly higher than
the industry average. This was mainly because of asset quality
issues faced by the company with respect to its self-help-group
(SHG)-based portfolio prior to July 2008. Since then, JFPSL has
discontinued with the SHG model and has been lending under the
mutual guarantee group (MGG) model. For portfolio originated after
July 2008, the PAR greater than 90 days was 1.0 per cent as on
March 31, 2010 and 0.13 per cent as on September 30, 2010.
Although JFSPL's delinquency levels have fallen for its more
recently disbursed loans and the company made several changes in
its systems and control processes, its asset quality remains below
average compared to other CRISIL-rated MFIs and NBFCs of similar
scale of operations. Any slowdown in business levels due to the
impact of the ordinance could increase delinquency for JFSPL,
since microfinance business is cyclical and reduction in
collection levels will adversely affect asset quality.
JFSPL has been in operations for two years, and has not yet
reported profits. For the half year ended of 2010-11 (refers to
financial; year, April 1 to March 31), the company has reported a
pre-tax loss of INR3.7 million. CRISIL believes that JFSPL will
generate marginal profits in 2010-11, considering its growth plans
and high operating expenses. A part of the operating expense in
the past two years has been on scaling up operations and
increasing the diversity of product offerings. CRISIL believes
that JFSPL will reap benefits from these investments over the long
term, provided it is able to scale up as planned; this depends on
the extent of external funding (both equity and debt) the company
is able to source. JFSPL's cash accruals are expected to remain
modest over the medium term.
JFSPL's adequate capitalization and comfortable gearing are
sufficient to fund its growth plans for 2010-11. The company will,
however, need capital regularly to achieve its aggressive growth
plans for the medium term as its cash accruals are expected to
remain modest. The company had a gearing of 1.3 times as on
March 31, 2010.
JFSPL has sound operational processes and control systems. The
company assigns a unique identification number and a biometric
smartcard to each of its customers. The smartcard technology
enhances transparency in collection processes, and ensures timely
flow of information for carrying out effective follow-up.
Furthermore, a sophisticated Oracle-based core banking solution
software and adequate back-office and management information
services systems help it to track key operational parameters with
a quick response time. The company has a dedicated internal audit
team, which conducts frequent audits of all its branches.
JFSPL's senior management team has experienced and recognised
professionals from the financial services sector. Mr. Ramesh
Ramanathan, the co-founder and the chairman of the company, has
extensive experience in banking and finance and is also on the
board of Sanghamithra Rural Financial Services' (SRFS's) rural
programme. The other senior management personnel are experienced
professionals from the banking and NBFC sectors (a few of them
have over two decades of industry experience each).
About Janalakshmi Financial
JFSPL is based in Bengaluru and commenced microfinance operations
in April 2008 by taking over the portfolio of Janalakshmi Social
Services (JSS, a not-for-profit company promoted by Mr. Ramesh
Ramanathan). JSS had earlier acquired the urban microfinance
programme of SRFS and had commenced its own microfinance programme
in July 2006. JFSPL provides microfinance services to the urban
poor. The company's main product is the MGG loan, with tenure of
12-15 months and monthly repayments. As on September 30, 2010,
JFSPL had a network of 46 branches, with outstanding loans of
INR1072 million.
JET AIRWAYS: Plans to Resume India-China Flights Next Year
----------------------------------------------------------
Wing-Gar Cheng and Susan Li at Bloomberg News report that Jet
Airways (India) Ltd. plans to resume direct flights between India
and China next year to meet rising demand for travel between the
two countries.
Bharath Mahadevan, manager for the northeast Asian region, told
Bloomberg that Jet Airways will offer Mumbai-Shanghai service and
plans to add flights to cities including Tokyo, Seoul, Taipei and
Paris in the year starting April 1, 2011. The new routes will
probably boost annual revenue at least 15%, Mahadevan said.
According to Bloomberg, the airline will begin once-daily service
between Mumbai and Shanghai by the end of next year as rising
incomes in China and India, Asia's two fastest growing major
economies, prompt more people to travel by air. The gains,
Bloomberg notes, are fueling a rebound in demand after Jet Air
last year halted daily flights from Mumbai to San Francisco via
Shanghai to cut costs as a global recession damped travel
appetite.
"China is very, very important for us," Mahadevan said on
Bloomberg Television. "North Asia has seen very good growth."
About Jet Airways
Jet Airways (India) Ltd (BOM:532617) -- http://www.jetairways.com/
-- provides air transportation. The geographic segments of the
company are domestic and international. The company has a
frequent flyer program named Jet Privilege wherein the passengers
who uses the services of the airline become services of the
airline become members of Jet Privilege and accumulates miles to
their credit. The company's subsidiaries include Jet Lite (India)
Limited, Jetair Private Limited, Jet Airways LLC, Trans
Continental e Services Private Limited, Jet Enterprises Private
Limited, Jet Airways of India Inc., India Jetairways Pty Limited
and Jet Airways Europe Services N.V. On April 20, 2007, the
company acquired Sahara Airlines Limited.
* * *
Jet Airways posted a consolidated net loss of INR9.6 billion for
the year ended March 31, 2009, compared with consolidated net
loss of INR6.5 billion for the year ended March 31, 2008.
Consolidated total sales increased from INR109.9 billion for the
year ended March 31, 2008 to INR134.4 billion for the year ended
March 31, 2009.
KAYNES HOTELS: CRISIL Downgrades Rating on INR200MM Loan to 'B-'
----------------------------------------------------------------
CRISIL has downgraded its ratings to 'B-/Negative' from 'B/Stable'
on the term loan of Kaynes Hotels Pvt Ltd.
Facilities Ratings
---------- -------
INR200.00 Million Term Loan B-/Negative (Downgraded from
'B/Stable')
The downgrade reflects more-than-expected debt funding for the
hotel project and delay in commencement of operations. The time
overruns in the project have severely constrained the liquidity of
the company. Moreover, the promoters have also withdrawn the
unsecured loans, which had previously been infused to fund the
project, and replaced it with term debt from banks. The downgrade
also reflects CRISIL's belief that the company's liquidity will
continue to remain constrained due to inadequate cash flows to
service the term debt obligations and high dependence on
promoters' funds to ensure timely debt servicing.
The rating reflects KHPL's below-average financial risk profile,
marked by a negative net worth and weak debt protection
indicators, and exposure to risks related to intense competition
and downturns in the hotel industry. The impact of these
weaknesses is mitigated by the promoters' entrepreneurial
experience and funding support to the company.
Outlook: Negative
CRISIL believes that KHPL's liquidity will remain constrained over
the medium term by significant term loan obligations vis-…-vis
internal accruals generated by the hotel. The company will have
to rely on promoter funding to support the operations and ensure
timely debt servicing. The outlook may be revised to 'Stable' in
case of a significant and sustainable increase in the company's
revenues, and improvement in its financial risk profile.
Conversely, the rating maybe downgraded if there are delays in
repayment of term debt, most likely due to inadequate internal
accruals or delayed receipt of promoter funds.
About Kaynes Hotels
KHPL was set up in 1989 by industrialist Mr. Raghunath; the
company operated a three-star hotel off the Mysore-Krishnaraja
Sagar Dam Road in Mysore (Karnataka). In January 2004, the hotel
was acquired by Mr. Jagannath Shenoi. The hotel was renovated in
two phases; Phase I became operational in March 2009 and Phase II
was completed by February 2010; currently, the hotel operates with
54 rooms.
KHPL reported a net loss of INR48 million on net sales of
INR32.5 million for 2009-10 (refers to financial year, April 1 to
March 31.
KONARK STRUCTURAL: CRISIL Assigns 'BB+' Rating to INR52.5MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Konark Structural Engineers Pvt Ltd, part of the
Konark group.
Facilities Ratings
---------- -------
INR27.50 Million Cash Credit BB+/Stable (Assigned)
INR52.50 Million Proposed Long BB+/Stable (Assigned)
Term Bank Loan Facilities
INR20.00 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the Konark group's modest, albeit increasing,
scale of operations in the intensely competitive civil
construction segment. These weaknesses are partially offset by
Konark Group's established presence in the civil construction
business and its healthy order book position which lends good
revenue visibility.
Analytical Approach
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of KSPL with those of Pragati Enterprises
and K R Construction, together referred to as Konark group. This
is because of the high degree of financial and business alignment
within the three entities.
Outlook: Stable
CRISIL believes that the Konark group will benefit over the medium
term from the promoters' longstanding experience in the civil
construction segment and its healthy order book position. The
outlook may be revised to 'Positive' if the group exhibits
significant and sustainable revenue growth while improving its
profitability and debt protection indicators. Conversely, the
outlook may be revised to 'Negative' in case its financial risk
profile deteriorates, owing to an increase in the gearing or
deterioration in the debt protection indicators, or due to larger-
than-expected debt-funded capital expenditure, or any significant
deterioration in the working capital cycle.
About Konark Structural
KSPL, incorporated in 1998 by Mr. Rajendra Shah, is into
construction, repair and earthwork for entities such as the
Brihanmumbai Municipal Corporation. The company is part of the
Konark group, which also includes KRC and Pragati. All three
entities are in the same line of business. KSPL and KRC are
managed by Mr. Rajendra Shah and Pragati is managed by Mr. Vinod
Shah and his brother-in-law Mr. Milan Shah - friends and business
associates of Mr. Rajendra Shah.
KSPL reported on provisional basis a profit before tax (PBT) of
INR11.5 million on net sales of INR 243.8 million for 2009-10
(refers to financial year, April 1 to March 31), against a profit
after tax (PAT) of INR9.16 million on net sales of INR207.2
million for 2008-09.
NAVDURGA ISPAT: CRISIL Upgrades Rating on Cash Credit to 'BB-'
--------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Navdurga
Ispat Pvt Ltd to 'BB-/Stable' from 'B+/Stable'.
Facilities Ratings
---------- -------
INR75.00 Million Cash Credit BB-/Stable (Upgraded from
'B+/Stable')
INR10.00 Million Letter of Credit BB-/Stable (Upgraded from
'B+/Stable')
The upgrade reflects improvement in NDIPL's operating margin in
2009-10 (refers to financial year, April 1 to March 31) following
commencement of operations at its partially backward-integrated
facility; the operating rate of the facility is healthy. The new
capacities have been meeting a significant proportion of the
company's ingot requirement. The improvement in NDIPL's operating
margin and revival in demand for its products is expected to
increase the company's cash accruals over the medium term.
The ratings reflect NDIPL's small scale of operations, moderate
financial risk profile marked by small net worth and weak debt
protection metrics, and susceptibility to downturns in its end-
user industry (steel). These rating weaknesses are partially
offset by NDIPL's moderate business risk profile, supported by
good relationships with suppliers and customers.
Outlook: Stable
CRISIL believes that NDIPL will continue to benefit from its good
relationships with customers. The outlook may be revised to
'Positive' if NDIPL significantly improves its revenues and
profitability, or further integrates its operations, while
improving its capital structure and debt protection metrics.
Conversely, the outlook may be revised to 'Negative' if the
company's financial risk profile deteriorates because of
significant decline in operating revenues and margin, or decline
in capital structure because of larger-than-expected debt-funded
capital expenditure.
About Navdurga Ispat
NDIPL was formed in 2004 when its current promoters, Mr. Mukesh
Pandey, Mr. Dayanand Goel, and Mr. Mahesh Goel, took over Rank
Vinyl Pvt Ltd. NDIPL produces a wide range of steel-rolled
structures, including beams, joists, channels, angles, round bars,
and flats. It has capacity to produce 30,000 tonnes per annum
(tpa) of structural steel items. The company has also commissioned
an induction furnace of 30,000 tpa capacity in December 2009.
NDIPL reported a profit after tax (PAT) of INR5.6 million on net
sales of INR752.4 million for 2009-10, against a PAT of INR3.1
million on net sales of INR621.3 million for 2008-09.
OMJYOTI APPARELS: ICRA Assigns 'LBB' Rating to INR6.5cr Bank Debt
-----------------------------------------------------------------
ICRA has assigned an "LBB" rating to INR6.50 crore fund-based
facilities, INR0.40 crore non-fund based facilities and
INR0.10 crore proposed facilities of M/s Omjyoti Apparels.
The rating takes into account the partners' significant experience
in the garment manufacturing and export business; and the firm's
established relationship with the buying houses/buyers resulting
in repeat orders. The rating is however constrained by the high
competitive intensity of the garment export industry characterized
by the low entry barriers and threat of substitution to other low
cost exporting countries like China, Vietnam etc. The rating is
further constrained on account of Omjyoti's high customer
concentration, vulnerability of its margins to foreign exchange
risk and its modest scale of operations. The rating also factors
in Omjyoti's adverse financial profile characterized by weak
profitability, low cash accruals, and weak debt coverage
indicators. While assigning the ratings ICRA has also noted the
risks that are inherent in partnership firms.
About Omjyoyi Apparels
Established in 2005 by Mr. Kishore Magu, M/s. Omjyoyi Apparels is
engaged in the manufacturing and export of garments mainly ladies
& children Hi-Fashions Garments. Based in Okhla Industrial Area
(Delhi), the firm is a 100 per cent export-oriented unit with an
installed current capacity to manufacture 10.50 Lac pieces per
annum.
Mr. Kishore Magu has the experience of more than three decades in
textile business. After demerger of family business in 2005, Mr.
Maghu started his own business of exporting and manufacturing of
garments in the name of Jyoti Apparels. Later in 2008, Jyoti
Apparels converted into a partnership firm. Omjyoti recorded a
net profit of INR0.28 crore on an operating income of INR 30.68
crore for the year ending on March 31, 2010.
P L RAJU: CRISIL Reaffirms 'BB+' Rating on INR80MM Debt to 'BB+'
----------------------------------------------------------------
CRISIL's ratings on P L Raju Constructions Ltd's bank facilities
continue to reflect PLRC's exposure to risks related to sectoral
concentration in its revenue profile, and its large working
capital requirements. These rating weaknesses are partially
offset by PLRC's healthy order book, and the benefits that the
company derives from its promoters' extensive experience in the
civil construction industry.
Facilities Ratings
---------- -------
INR80 Million Overdraft BB+/Stable (Reaffirmed)
INR240 Million Bank Guarantee P4+ (Reaffirmed)
Outlook: Stable
CRISIL believes that PLRC will maintain a moderate business risk
profile over the medium term backed by its promoters' experience
in the construction industry, and supported by a healthy order
book. The outlook may be revised to 'Positive' if PLRC posts
higher-than-expected revenue growth with sustained profitability,
which could be primarily driven by a diversified revenue and
client base. Conversely, the outlook may be revised to 'Negative'
if PLRC makes large investments in any unrelated business, or
undertakes new working-capital-intensive projects, leading to
significant deterioration in its financial risk profile, or if
there are larger-than-expected dividend payouts.
About P L Raju
Set up as a partnership firm in 1973 by Mr. PL Raju, PLRC was
reconstituted as a private limited company in 1997, and
subsequently as a closely held public limited company in 1998.
Based in Hyderabad, PLRC undertakes civil construction for the
Indian Army and Navy. The company has executed site development,
civil and structural construction, electrification, air-
conditioning, and water and sewage system projects. Currently,
the company is being managed by Mr. Raju's sons.
PLRC reported a profit after tax (PAT) of INR14.36 million on net
sales of INR253.34 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR21.47 million on ne t
sales of INR481.83 million for 2008-09.
PANDESARA INFRASTRUCTURE: CRISIL Lifts Rating on Term Loan to 'B-'
------------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of
Pandesara Infrastructure Ltd to 'B-/Stable/P4' from 'D/P5'.
Facilities Ratings
---------- -------
INR215.4 Million Term Loan B-/Stable (Upgraded from 'D')
INR10.0 Million Bank Guarantee P4 (Upgraded from 'P5')
The rating upgrade reflects the regularization of term loans, with
timely payments of interest obligations, by PIL for the six months
ended October 2010. The upgrade also reflects CRISIL's belief
that PIL's ongoing project will generate sufficient cash accruals
over the medium term to meet its term loan obligations in a timely
manner; any repayment gap is expected to be bridged by infusion of
funds by PIL's promoters.
The ratings reflect PIL's short track record of timely servicing
of debt, weak financial risk profile, and exposure to risks
related to concentration of revenues in the textile industry.
These weaknesses are partially offset by the PIL's good revenue
visibility for its upcoming common effluent treatment plant (CETP)
in view of the favorable environmental regulation scenario.
Outlook: Stable
CRISIL believes that PIL will generate adequate cash accruals to
service its debt over the medium term, supported by stabilisation
of operations at its upcoming CETP in the textile park from its
members. The outlook may be revised to 'Positive' if PIL's
financial performance is stronger than expected, backed by growth
in revenues and conversion of unsecured loans from members to
equity capital. Conversely, the outlook may be revised to
'Negative' if the company delays in stabilizing operations at the
CETP, thereby adversely impacting its debt servicing ability.
About Pandesara Infrastructure
Incorporated in June 2007, PIL is a special-purpose vehicle
promoted by Pandesara Green Environment and Water Welfare Co-
operative Society (PAGREW) to set up a CETP near Vadod (Gujarat).
The CETP will process effluent discharge from Gujarat Industrial
Development Corporation (GIDC) at Pandesara (Gujarat). The total
estimated capacity of the upcoming CETP is 100 million litres per
day and the operations are expected to begin by the end of
November 2010. The total cost of the project is estimated to be
INR 827 million, funded by a term debt of INR215 million, equity
capital of INR150 million, and grants from government to PAGREW of
INR462 million. PAGREW is a cooperative society comprising
members of GIDC Pandesara, which houses more than 600
manufacturing units, including 122 textile and chemical units.
Currently, all the chambers are booked by the members of PAGREW.
PRAGATI ENTERPRISES: CRISIL Places 'BB+' Rating on INR40MM Debt
---------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Pragati Enterprises, part of the Konark group.
Facilities Ratings
---------- -------
INR40.00 Million Cash Credit BB+/Stable (Assigned)
INR55.00 Million Proposed LT BB+/Stable (Assigned)
Bank Loan Facilities
INR5.00 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the Konark group's modest, albeit increasing,
scale of operations in the intensely competitive civil
construction segment. These weaknesses are partially offset by
Konark Group's established presence in the civil construction
business and its healthy order book position which lends good
revenue visibility.
Analytical Approach
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Pragati with those of Konark Structural
Engineers Pvt Ltd and K R Construction, together referred to as
Konark group. This is because of the high degree of financial and
business alignment within the three entities.
Outlook: Stable
CRISIL believes that the Konark group will benefit over the medium
term from the promoters' longstanding experience in the civil
construction segment and its healthy order book position. The
outlook may be revised to 'Positive' if the group exhibits
significant and sustainable revenue growth while improving its
profitability and debt protection indicators. Conversely, the
outlook may be revised to 'Negative' in case its financial risk
profile deteriorates, owing to an increase in the gearing or
deterioration in the debt protection indicators, or due to larger-
than-expected debt-funded capital expenditure, or any significant
deterioration in the working capital cycle.
About Pragati Enterprises
Pragati, incorporated in 2000 as a partnership concern of
Mr. Vinod Shah and his brother-in-law Mr. Milan Shah, is into
construction, repair and earthwork for entities such as the
Brihanmumbai Municipal Corporation. The company is part of the
Konark group, which also includes KRC and KSPL. All three entities
are in the same line of business. KSPL and KRC are managed by Mr.
Rajendra Shah and Pragati is managed by Mr. Vinod Shah and Mr.
Milan Shah- friends and business associates of Mr. Rajendra Shah.
Pragati reported on provisional basis a profit before tax (PBT) of
INR10.5 million on net sales of INR224.9 million for 2009-10
(refers to financial year, April 1 to March 31), against a profit
after tax (PAT) of INR5.7 million on net sales of INR138.0 million
for 2008-09.
QVC EXPORTS: CRISIL Assigns 'BB-' Ratings to INR10MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to QVC Exports
Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR10.00 Million Cash Credit BB-/Stable (Assigned)
INR65.00 Million Bill Discounting P4+ (Assigned)
INR5.00 Million Standby Line of Credit P4+ (Assigned)
INR10.00 Million Bank Guarantee P4+ (Assigned)
INR67.50 Million Letter of Credit P4+ (Assigned)
INR5.00 Million Proposed Short-Term P4+ (Assigned)
Bank Loan Facility
The ratings reflect QVC's average scale of operations, low
profitability margins, and exposure to risks related to volatility
in commodity prices and foreign exchange rates. These rating
weaknesses are partially offset by extensive experience of QVC's
promoter in the metals and minerals trading industry.
Outlook: Stable
CRISIL believes that QVC will benefit from the stable demand for
ferroalloy products and base metals, over the medium term. The
outlook may be revised to 'Positive' if the company generates
better-than-expected operating revenues and profitability margins
while maintaining its debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if QVC's financial risk
profile materially deteriorates due to the higher-than-expected
increase in working capital requirements, or if the company's
profitability declines due to volatility in commodity prices or
forex rates, or if it extends more-than-expected support to its
group companies.
About QVC Exports
QVC, set up in 2005 by Mr. Nilesh Sharma, trades in a variety of
metals and minerals such as iron, steel, ferroalloys, copper,
nickel, aluminium, manganese ore, coal, and coke. QVC's major
customers include Sova Ispat Alloys Ltd (rated 'BB/Stable/P4+' by
CRISIL), Firestar, Euromet SA, SC Impex, and Alfa Laminati.
QVC reported a profit after tax (PAT) of INR5 million on net sales
of INR681.4 million for 2009-10 (refers to financial year, April 1
to March 31), against a PAT of INR2.1 million on net sales of
INR489.1 million for 2008-09.
RIVAA EXPORTS: CRISIL Reaffirms 'BB-' Rating on INR87.8M Term Loan
------------------------------------------------------------------
CRISIL has upgraded its rating on Rivaa Exports Ltd's short-term
bank facilities to 'P4+' from 'P4', and has reaffirmed its rating
on the company's long-term facilities at 'BB-/Stable'. The rating
upgrade reflects Rivaa Exports' improved liquidity on the back of
infusion of unsecured loans from promoters to fund working capital
requirements.
Facilities Ratings
---------- -------
INR60.0 Million Cash Credit Limit BB-/Stable (Reaffirmed)
INR87.8 Million Term Loan BB-/Stable (Reaffirmed)
INR30.0 Million Packing Credit P4+ (Upgraded from 'P4')
INR45.0 Million Foreign Bill Purchase P4+ (Upgraded from 'P4')
INR10.0 Million Letter of Credit P4+ (Upgraded from 'P4')
The ratings continue to reflect the expected weakening in Rivaa
Exports' financial risk profile because of its continuing
debt-funded capital expenditure (capex), and its small scale of
operations in the intensely competitive textile industry. These
rating weaknesses are partially offset by the benefits that the
company derives from the industry experience of its promoters.
Outlook: Stable
CRISIL believes that Rivaa Exports will maintain its business risk
profile over the medium term, supported by additional revenues
from its expanded capacity and marginal improvement in its
operating margin. The company's financial risk profile will,
however, face pressures because of its highly leveraged capital
structure. The outlook may be revised to 'Positive' if Rivaa
Exports increases its cash accruals substantially, leading to
improvement in its financial risk profile. Conversely, the
outlook may be revised to 'Negative' if the company undertakes a
larger-than-expected debt-funded capex programme, thereby
weakening its capital structure further.
About Rivaa Exports
Established in 2004 by the Surat-based Virmani family, Rivaa
Exports manufactures blended fabrics for the salwar, kameez, and
dupatta (SKD) segment in the textile industry.
Rivaa Exports' profit after tax (PAT) and net sales are estimated
at INR16.0 million and INR666.7 million for 2009-10 (refers to
financial year, April 1 to March 31); it reported a PAT of
INR28.6 million on net sales of INR645.7 million for 2008-09.
SRUTI FILATEX: CRISIL Assigns 'BB-' Rating to INR49.5MM Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable' rating to the bank facilities
of Sruti Filatex Pvt Ltd.
Facilities Ratings
---------- -------
INR60.0 Million Cash Credit BB-/Stable (Assigned)
INR49.5 Million Rupee Term Loan BB-/Stable (Assigned)
The ratings reflect the company's small net worth, average scale
of operations, modest profitability, and leveraged capital
structure. These weaknesses are partially offset by SFPL's above-
average debt protection measures and established track record in
the partially oriented yarn (POY) texturising industry.
Outlook: Stable
CRISIL believes that SFPL will maintain its business risk profile,
supported by its established track record, and above-average debt
protection measures backed by satisfactory cash accruals, over the
medium term. The outlook may be revised to 'Positive' if the
company increases its revenues and registers better-than-expected
profitability, while improving its existing capital structure.
Conversely, the outlook may be revised to 'Negative' if SFPL's
debt protection measures and capital structure deteriorate because
of any larger-than-expected debt-funded capital expenditure
programme.
About Sruti Filatex
Incorporated by Mr. Niranjan Agarwal in 2003, SFPL texturises POY.
The company's manufacturing facility, located in Surat (Gujarat),
has texturisation capacity of 26 tonnes per day. SFPL procures POY
primarily from Garden Silk Mills Ltd and Rajashree Polyfil and
sells the texturised yarn in and around Surat. The company also
has captive windmills in Bhachau (Gujarat), with capacity of 5
million units per annum.
SFPL reported a profit after tax (PAT) of INR3.3 million on net
sales of INR730.2 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR2.6 million on net sales
of INR657.9 million for 2008-09.
TRISTAR RETAIL: CRISIL Assigns 'B-' Rating to INR181.4MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'B-/Stable/P4' ratings to the bank
facilities of Tristar Retail Pvt Ltd, part of the Tristar group.
Facilities Ratings
---------- -------
INR170.0 Million Cash Credit B-/Stable (Assigned)
INR143.6 Million Proposed LT B-/Stable (Assigned)
Bank Loan Facility
INR181.4 Million Term Loan B-/Stable (Assigned)
INR5.0 Million Bank Guarantee P4 (Assigned)
The ratings reflect the Tristar group's below average financial
risk profile, marked by high bank limit utilization and gearing,
and average debt protection metrics. This rating weakness is
partially offset by the group's satisfactory business risk
profile, supported by its established relationships with its
principals.
To arrive at its ratings, CRISIL has combined the financial and
business risk profiles of TRPL and Tristar Tradelinks Pvt Ltd
(TTPL), together referred to as the Tristar group. This is because
both the entities have common management, have cross-holdings, and
undertake substantial intra-group business transactions.
Outlook: Stable
CRISIL believes that the Tristar group's credit risk profile will
be constrained by its large, debt-funded capital expenditure
(capex) plan to set up new stores, and incremental working capital
requirements. The outlook may be revised to 'Positive' if of the
group's capital structure and liquidity improves because of
sizeable long-term funds from promoters to support the capex.
Conversely, the outlook may be revised to 'Negative' if the group
delays in sourcing adequate funding for the capex, if its new
stores take longer than expected to achieve break-even, leading to
additional pressures on liquidity, or if the group delays in
servicing its debt.
About the Group
The Tristar group started operations with the incorporation of
TTPL in 1999. TTPL is a distributor of various accessories and
apparel brands such as Reebok, Levi's Signature, Titan, and John
Players. TRPL, also incorporated in 1999, operates exclusive
stores for brands such as Levi's Signature, Titan Eye+, World of
Titan, and John Players, for which TTPL is a distributor. TRPL
currently operates more than 100 stores spread across 43 cities in
Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh and
Goa. The Tristar group also owns eight additional companies
engaged in retail and real estate activities. The group, based in
Nagpur, is promoted by Mr. Kamal Kothari and his family.
TRPL reported a profit after tax (PAT) of INR24.3 million on an
operating income of INR892.2 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR21.9
million on an operating income of INR773.9 million for 2008-09.
=================
I N D O N E S I A
=================
BANK NEGARA: Fitch Affirms Issuer Default Rating at 'BB+'
---------------------------------------------------------
Fitch Ratings has affirmed PT Bank Negara Indonesia Tbk's Long-
term foreign and local currency Issuer Default Rating at 'BB+',
National Long-term rating at 'AA(idn)', Individual rating at
'C/D', Support at '3', Support Rating Floor at 'BB' and Short-term
foreign currency IDR at 'B'. The Outlook is Stable.
"The affirmations of BNI's ratings are underpinned by its
gradually improving levels of profitability, asset quality and
capital after the impending rights issue, and concerted efforts to
enhance its risk and corporate governance framework," says Iwan
Wisaksana, Director with the agency's Financial Institutions
group. Its National rating is currently lower than that of other
large banks in Indonesia, and an upgrade will be dependent on a
sustained record of improved financial performance which, in
Fitch's opinion, is more likely over the longer term.
Although the government's stake in BNI is estimated to fall to
60.0% (Q310: 73.3%) following the IDR10.5 trillion rights issue at
end-2010, Fitch expects government support to remain forthcoming
in times of need, given its systemic importance as Indonesia's
fourth-largest bank. These considerations underpin the Support
rating at '3' and Support Rating Floor of 'BB', which are similar
to other systemically important banks in Indonesia.
With the IDR10.5 trillion rights issue, Fitch estimates that BNI's
Tier 1 capital adequacy ratio and total CAR would be 16% and 18%,
respectively, by end-2010 (Q310 Tier 1 CAR: 10.2%; Q310 total
CAR: 12.0%).
BNI's profitability continued to improve in Q310. Its Return on
Assets and Return on Equity (ROE) were 2.6% (2009: 1.7%) and 25.1%
(2009: 16.3%), respectively, as net income rose 59% on the back of
a generally healthy domestic economy.
BNI's NPL ratio eased to 4.4% in Q310 (2009: 4.7%) due to recovery
efforts, as well as more favorable economic conditions, but
remained higher than the industry average of 3.4%. NPL coverage
was a reasonable 120% in Q210 (2009: 120%), although below the
peer average (2009: 141%). In Fitch's view, further strengthening
of its NPL coverage is crucial for its credit fundamentals, given
its improving, but still modest asset quality.
BNI, incorporated in 1946, is one of four state-owned banks and
the fourth-largest bank in Indonesia by total assets.
=========
J A P A N
=========
PROMISE CO: Moody's Reviews 'Ba1' Long-Term Issuer Debt Ratings
---------------------------------------------------------------
Moody's Japan K.K. had placed its Ba1 long-term issuer and senior
unsecured debt ratings on Promise Co., Ltd. on review for possible
downgrade.
Rating Rationale
This action reflects Moody's concern that Promise's franchise and
operating stability may deteriorate due to the persistently severe
operating environment.
Promise's financial fundamentals have worsened further due to
ongoing, high overpaid interest claims.
Moreover, Takefuji's bankruptcy may lead to even higher losses for
Promise due to overpaid interest claims.
The impact could be considerable depending on how large a portion
of Promise's outstanding exposures overlaps with Takefuji's --
e.g., lender exchange numbers higher than three.
Unlike Credia, which operated in Shizuoka and went bankrupt in
2007, Takefuji had a nationwide presence and brand, and the
potential number of claims could be quite high.
Moody's review of Promise will focus on the negative impact of (1)
overpaid-interest claims in light of the Takefuji bankruptcy and
(2) the introduction of loan amount caps.
Promise's ratings incorporate the company's stand-alone financial
strength as well as the likelihood of support from Sumitomo Mitsui
Banking Corporation -- the core bank of the Sumitomo Mitsui
Financial Group -- in the event of stress.
Thus, in its review, Moody's will re-assess Promise's stand-alone
financial fundamentals as well as the strength of the potential
support were the company's financial strength to deteriorate
significantly.
Moody's last rating action with respect to the Promise was taken
on May 28, 2010, when the long-term issuer and unsecured debt
ratings were downgraded to Ba1 from Baa2 and a negative ratings
outlook was assigned.
Promise Co. Ltd., headquartered in Tokyo, is a major Japanese
consumer finance company, with consolidated assets of around
JPY1.2 trillion as of September 30, 2010.
===============
M A L A Y S I A
===============
LINEAR CORP: Receives Writ of Summons From Hong Leong Bank
----------------------------------------------------------
Linear Corporation Berhad disclosed that it has been served a Writ
of Summons and Statement of Claim filed by Hong Leong Bank Berhad.
The Writ of Summons dated November 30, 2010, and Statement of
Claim dated November 29, 2010, were received by the Company on
December 14, 2010, by way of a Registered Post from YH Teh & Quek,
Advocates & Solicitors for Hong Leong Bank. The Company has 12
days from the date of receipt of the Writ of Summons to serve the
appearance.
Hong Leong Bank is claiming payment for:
* MYR425,762.51 as at October 19, 2010;
* additional interest rate of 8% per annum of MYR424,047.58
with effect from October 20, 2010, until the date of full
settlement;
* costs;
* legal expenses; and
* other expenses.
The filing of the Writ of Summons is due to the Company's failure
to pay the monthly hire purchase installment for BP 1414.
The Company said it will take immediate steps to resolve the
matter amicably by negotiating a deferred plan.
About Linear Corp.
Linear Corporation Berhad -- http://www.linear.com.my/-- engages
in investment holding and providing management services. The
Company operates in five business segments: investment holding,
manufacturing of cooling towers, engineering, which includes
designing and building district cooling system plants; trading of
cooling towers and solar panel, and others, which includes
providing water treatment services, trading of water tank,
composites and other compounds.
In June 2010, Linear Corp. was listed as a Practice Note 17
company based on the criteria set by the Bursa Malaysia Securities
Bhd as it had triggered Paragraph 2.1 (f) of the PN17 and was
unable to provide a solvency declaration to Bursa Securities.
NAM FATT: Creditors Confirms Appointment of Ferrier Hodgson
-----------------------------------------------------------
The creditors of Nam Fatt Marketing Sdn. Berhad, a subsidiary of
Nam Fatt Corporation Berhad, resolved on December 15, 2010, that
Mr. Michael Joseph Monteiro and Mr. Heng Ji Keng of Ferrier
Hodgson MH be confirmed as joint and several liquidators for the
purpose of winding up the affairs and distribution of the assets
of NFM.
NFM has declared that it cannot, by reason of its liabilities,
continue its business. NFM reported a net loss of MYR20,194,503
for the year ended December 31, 2009.
About Nam Fatt
Nam Fatt Corporation Berhad is a Malaysia-based company. The
principal activities of the Company consist of investment holding
and construction of bridges, heavy concrete foundations, roads,
factory complexes and other similar construction activities. The
Company operates in four business segments: engineering and
construction, property, leisure, and manufacturing. The Company's
subsidiaries include Nam Fatt Fabricators Sdn. Bhd., which is
engaged in the construction of bridges, heavy concrete
foundations, roads, factory complexes and similar construction
activities; Agenda Istimewa Sdn Bhd, which is engaged in property
development; P & N Construction Sdn. Bhd. which is engaged in the
business of general contractors; Nam Fatt Marketing Sdn. Bhd.,
which is a sales distributor and marketing agent, and Maddusalat
Berhad, which is the owner and developer of golf resort and its
recreational amenities, property developer, and property manager.
* * *
Nam Fatt Corporation 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 Paragraph 2.1(f) of the Practice Note 17
of the Main Market Listing Requirement of Bursa Malaysia following
failure to meet its principal and interest payment of
MYR13,225,037.39 due and payable on March 15, 2010, in respect of
the Asset Sale Agreement dated December 4, 2007, between Bank
Kerjasama Rakyat Malaysia Berhad and Nam Fatt.
NAM FATT: Court of Appeal Grants Interim Stay Order
---------------------------------------------------
Nam Fatt Corporation Berhad said that the Court of Appeal on
December 10, 2010, granted an interim order pursuant to Section 44
of the Courts of Judicature Act 1964, pending disposal of the
Scheme Companies' appeal proper in the Court of Appeal against a
High Court decision.
In November, Nam Fatt Corp. and its subsidiaries Nam Fatt
Construction Sdn Bhd, NF Energy Sdn Bhd and Maddusalat Berhad
filed an appeal against High Court decision not to grant an order
for the Group to convene a meeting with its recognized creditors.
The Court of Appeal ordered that, among others:
a) all actions or proceedings against the Scheme Companies
in any Court including but not limited to winding-up,
enforcement, execution and arbitration proceedings be
restrained from all further proceedings in any way
except by leave of the Court; and
b) any creditors who holds any of the security documents,
signed with or given to such creditors, against the
Scheme Companies and/or any third party who have given
security for and on behalf of the Scheme Companies or
otherwise, be restrained whether by themselves, their
servants and/or agents and/or otherwise from appointment
of receivers and managers and/or taking any action or
proceeding whatsoever under such securities.
About Nam Fatt
Nam Fatt Corporation Berhad is a Malaysia-based company. The
principal activities of the Company consist of investment holding
and construction of bridges, heavy concrete foundations, roads,
factory complexes and other similar construction activities. The
Company operates in four business segments: engineering and
construction, property, leisure, and manufacturing. The Company's
subsidiaries include Nam Fatt Fabricators Sdn. Bhd., which is
engaged in the construction of bridges, heavy concrete
foundations, roads, factory complexes and similar construction
activities; Agenda Istimewa Sdn Bhd, which is engaged in property
development; P & N Construction Sdn. Bhd. which is engaged in the
business of general contractors; Nam Fatt Marketing Sdn. Bhd.,
which is a sales distributor and marketing agent, and Maddusalat
Berhad, which is the owner and developer of golf resort and its
recreational amenities, property developer, and property manager.
* * *
Nam Fatt Corporation 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 Paragraph 2.1(f) of the Practice Note 17
of the Main Market Listing Requirement of Bursa Malaysia following
failure to meet its principal and interest payment of
MYR13,225,037.39 due and payable on March 15, 2010, in respect of
the Asset Sale Agreement dated December 4, 2007, between Bank
Kerjasama Rakyat Malaysia Berhad and Nam Fatt.
NAM FATT: Sells Land to Cengal Saujana For MYR21.1 Million
----------------------------------------------------------
Nam Fatt Corporation Berhad has entered into a Sale and Purchase
Agreement with Cengal Saujana Sdn. Bhd. for the disposal of a
parcel of land for MYR21.10 million.
A full-text copy of the Details of the disposal is available for
free at http://ResearchArchives.com/t/s?70fd
About Nam Fatt
Nam Fatt Corporation Berhad is a Malaysia-based company. The
principal activities of the Company consist of investment holding
and construction of bridges, heavy concrete foundations, roads,
factory complexes and other similar construction activities. The
Company operates in four business segments: engineering and
construction, property, leisure, and manufacturing. The Company's
subsidiaries include Nam Fatt Fabricators Sdn. Bhd., which is
engaged in the construction of bridges, heavy concrete
foundations, roads, factory complexes and similar construction
activities; Agenda Istimewa Sdn Bhd, which is engaged in property
development; P & N Construction Sdn. Bhd. which is engaged in the
business of general contractors; Nam Fatt Marketing Sdn. Bhd.,
which is a sales distributor and marketing agent, and Maddusalat
Berhad, which is the owner and developer of golf resort and its
recreational amenities, property developer, and property manager.
* * *
Nam Fatt Corporation 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 Paragraph 2.1(f) of the Practice Note 17
of the Main Market Listing Requirement of Bursa Malaysia following
failure to meet its principal and interest payment of
MYR13,225,037.39 due and payable on March 15, 2010, in respect of
the Asset Sale Agreement dated December 4, 2007, between Bank
Kerjasama Rakyat Malaysia Berhad and Nam Fatt.
====================
N E W Z E A L A N D
====================
CAPITAL + MERCHANT: Directors Remanded For Court Hearing Next Year
------------------------------------------------------------------
The New Zealand Herald reports that the Serious Fraud Office case
against one former and one current director of Capital + Merchant
has been adjourned to the new year.
As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 10, 2010, the Serious Fraud Office arrested and laid six
charges under the Crimes Act against Capital + Merchant Finance
executives Neal Medhurst Nicholls and Wayne Leslie Douglas. The
charges involve nearly NZ$14.5 million of related party lending
dating back to 2002. The SFO alleged that as directors of CMF,
Mr. Nicholls and Mr. Douglas held investors' funds subject to a
special relationship with investors and that they used their
position to apply those funds in a manner inconsistent with that
relationship. The SFO also alleged the directors falsely stated
the true extent of related party lending in annual CMF
prospectuses and associated financial statements in July 2003 and
September 2004.
NZ Herald says the pair was remanded on bail in the Auckland
District Court Thursday for a post committal conference on
February 25, 2011, when a trial date could be set.
About Capital + Merchant
Capital + Merchant Finance Ltd, operating in property finance, was
one of the bigger finance companies in New Zealand. Capital +
Merchant Finance, along with subsidiary Capital + Merchant
Investments Ltd., went into receivership on November 23, 2007, due
to breaches in respect of general security agreements issued by
the companies in favor of creditor Fortress Credit Corporation
(Australia) 11 Pty Ltd. Fortress appointed Tim Downes and Richard
Simpson of Grant Thornton, chartered accountants, while trustee
Perpetual Trust have called in KordaMentha.
Capital + Merchant owes about NZ$190 million to 7,000 investors.
Fortress reportedly has a prior charge over assets and was owed
around NZ$70 million in total.
GENEVA FINANCE: First Half Loss Narrows to NZ$950,000
-----------------------------------------------------
Geneva Finance disclosed its financial results for the six months
ended September 30, 2010.
The company posted a net loss of NZ$950,000, 64% improvement from
NZ$2.6 million net loss reported a year earlier.
Operating revenue declined to NZ$5.26 million from NZ$9.28 million
in the same period last year.
As of September 30, 2010, the company's balance sheet showed
NZ$72.83 million in total assets, NZ$59.05 million in total
liabilities and NZ$13.78 million in shareholders' equity.
Geneva Finance was the first finance company to freeze payments in
November 2007, owing NZ$142 million to 3,000 investors. The
company had paid about NZ$100 million in principal and interest to
investors by the end of September.
About Geneva Finance
Geneva Finance Limited -- http://www.genevafinance.co.nz/--
provides finance and financial services to the consumer credit
and small to medium business markets. The company provides hire
purchase finance and personal loans secured by registered
security interests over personal assets such as motor vehicles,
household goods and residential property. Geneva Finance's
loans are originated through three distribution channels
(Direct, Retail and Dealer), processed by the central sales desk
and mobile sign-up managers then administered through a national
operations centre located at Mt Wellington, Auckland.
* * *
As reported in Troubled Company Reporter-Asia Pacific on April 1,
2010, Standard & Poor's Ratings Services said that it had raised
its long-term rating on Geneva Finance Ltd. to 'CCC' from 'SD'.
At the same time, the insurer financial strength rating on
Geneva's captive insurer, Quest Insurance Group Ltd., was raised
to 'CCC' from 'CC', and removed from CreditWatch Negative. The
outlook on both ratings is negative.
The upgrade on Geneva follows the company's success in securing
debenture investors' approval and banker support. The 'CCC'
rating reflects S&P's view that the finance company has a marginal
liquidity position, which is expected to help it meet its
immediate principal and interest repayment in full and on time
under its new arrangement. However, there is significant
uncertainty about Geneva's future liquidity position as the
company's liquidity still depends on favorable business,
financial, and economic conditions. Moreover, Geneva needs to
remain prudent in its management of operating cash flows. While
management has carefully overseen operations, cash flows, and
banker relationships since initially being placed into moratorium-
-and has compared favorably with other finance company peers that
were also placed in moratorium--a return to profitability is yet
to be proven.
PIKE RIVER: Receivers May Not Get Full NZ$100-Mln Insurance Payout
------------------------------------------------------------------
The New Zealand Herald reports that Pike River Coal Ltd receivers
said they may not be able to claim a full NZ$100 million insurance
payout to reimburse creditors of the company.
PricewaterhouseCoopers receiver John Fisk told Radio New Zealand
on Thursday that it may not be possible to claim the total amount
of two "business interruption" policies held by the company,
according to the NZ Herald.
Mr. Fisk said that could affect the amount of money available to
give to creditors still owed millions by the company.
"The maximum amount of their policy is $100m but the actual amount
that could be claimable could be considerably less than that."
Mr. Fisk said receivers were still waiting for calculations to
show the exact amount of the insurance claim for Pike River Coal.
It remains to be seen whether there will be enough money to pay
back those unsecured creditors, said Mr. Fisk.
They will remain behind the company's redundant workers and
secured creditors in the hierarchy of payments, he said.
As reported in the Troubled Company Reporter-Asia Pacific on
December 14, 2010, Bloomberg News said that Pike River Coal Ltd,
the New Zealand company that operates the coal mine where 29
miners died in a series of explosions last month, has been placed
into receivership. Bloomberg related that Pike River Chairman
John Dow said that its largest shareholder, NZ Oil & Gas,
appointed accountants PricewaterhouseCoopers as receivers.
The company owed NZ$80 million to secured creditors BNZ and
New Zealand Oil and Gas. Pike River also owed another estimated
NZ$10 million to NZ$15 million to contractors, including some of
the men who lost their lives in the disaster.
About Pike River
Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is
a New Zealand-based coal mining company. The Company, along with
its subsidiaries, is primarily engaged in the exploration,
evaluation, development and production of coal. It operates a
coal mine that lies under the Paparoa Ranges.
PIKE RIVER: NZ$1.5-Million Relief Fund Safe, Trustee Says
---------------------------------------------------------
The New Zealand Press Association reports that the trustee of the
Pike River Coal Ltd miners' relief fund dismissed Thursday fears
the NZ$1.5 million put aside for those who lost loved ones in the
coal mine disaster would end up in the hands of the receivers.
NZPA relates that Paul Foley said the money, made up of NZ$500,000
from Pike River Coal, NZ$500,000 from NZ Oil and Gas and about
NZ$500,000 from donations nationwide, was safe and the "receivers
cannot get their hands on it".
According to NZPA, Grey District mayor Tony Kokshoorn said he
feared the money would not get to the families after Pike River
Coal was handed over to receivers.
Mr. Foley told Radio New Zealand that money donated by Pike River
Coal sat in an entirely separate account which the receivers could
not touch, NZPA reports.
NZPA says the fund was set up to merge with a separate fund set up
by the Grey District Council which had about NZ$4.5 million in it.
A separate fund set up by the Engineering, Printing and
Manufacturing Union has about NZ$220,000 in it, NZPA notes.
It is yet to be decided how the money will be distributed to the
families.
Meanwhile, NZPA reports that Pike River Coal receiver John Fisk
said the operation to recover the bodies of the 29 men trapped in
the mine had so far cost between NZ$4 million and NZ$5 million and
estimated it would cost NZ$10 million by Christmas.
Mr. Fisk, as cited by NZPA, said that the GAG machine being used
to reduce the risk of fire in the mine alone cost something like
NZ$10,000 an hour.
"And that's running constantly at the moment so Pike River Coal is
not in the position to meet those sort of costs," Mr. Fisk told
Radio New Zealand, according to NZPA.
"But obviously we're keen to explore getting access to the mine if
that's possible and we're working with those government
departments to see if a plan can be put together to achieve that,"
he said.
As reported in the Troubled Company Reporter-Asia Pacific on
December 14, 2010, Bloomberg News said that Pike River Coal Ltd,
the New Zealand company that operates the coal mine where 29
miners died in a series of explosions last month, has been placed
into receivership. Bloomberg related that Pike River Chairman
John Dow said that its largest shareholder, NZ Oil & Gas,
appointed accountants PricewaterhouseCoopers as receivers.
The company owed NZ$80 million to secured creditors BNZ and
New Zealand Oil and Gas. Pike River also owed another estimated
NZ$10 million to NZ$15 million to contractors, including some of
the men who lost their lives in the disaster.
About Pike River
Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is
a New Zealand-based coal mining company. The Company, along with
its subsidiaries, is primarily engaged in the exploration,
evaluation, development and production of coal. It operates a
coal mine that lies under the Paparoa Ranges.
===========
T A I W A N
===========
CATHAY DUN: Fitch Maintains Negative Watch on All Certs.
--------------------------------------------------------
Fitch Ratings has maintained the Rating Watch Negative status on
all beneficiary certificates issued by Taiwan's Cathay Dun Nan
Commercial Building Real Estate Asset Trust. The current ratings
of the beneficiary certificates are:
-- TWD1,167.5m Class A Beneficiary Certificates 'AAAsf(twn)';
remains on RWN;
-- TWD285m Class B Beneficiary Certificates 'Asf(twn)'; remains
on RWN; and
-- TWD310m Class C Beneficiary Certificates 'BBsf(twn)'; remains
on RWN.
Fitch placed all classes on RWN on 16 November 2010 in view of the
uncertainties and the increased risk profile of the transaction
caused by the confirmation that two major tenants (accounting for
about 18.6% of gross monthly rental income) would be terminating
their leases earlier than scheduled in March 2011. Over the past
month, the property manager has been negotiating with potential
tenants. The agency notes that the uncertainties of the
transaction's debt servicing capabilities may be eliminated if new
tenants are able to fill-in the gap of rental income that will be
caused by the early departure of these two tenants. Fitch
continues to view the RWN as appropriate at this point for all
classes as no new leases have been finalised as of mid-December
2010.
Fitch will continue to monitor the performance of the transaction
closely and will review the RWN status within two months.
=============
V I E T N A M
=============
VIETNAM SHIPBUILDING: Can't Make US$60M Debt Payment Due Next Week
------------------------------------------------------------------
The Associated Press reports that Nguyen Ngoc Su, chair of the
Vietnam Shipbuilding Industry Group, said the state-run
shipbuilding company does not have enough money to make a
US$60 million loan payment next week, and has asked foreign
creditors for more time to pay.
Su is quoted in the online newspaper VietnamNet as saying that he
informed creditors on Dec. 10 that it will be impossible for the
company to make the first repayment of principal due Dec. 20 on a
$600 million loan from a group of creditors led by Credit Suisse,
the AP says.
"If Vinashin is cornered to default or go bankrupt, creditors of
the $600 million will not collect a penny," Su said. "Both sides
will lose. That's reality, there's no alternative. Generally
speaking, we are of the view that the banks should not use tough
measures on Vinashin during this very difficult situation."
The AP notes that the government has said the company, known as
Vinashin, is responsible for paying its own debts.
According to the AP, ratings agency Standard & Poor's said Monday
that Vinashin's problems would likely undermine the credit quality
of the country's banks.
"Vinashin's woes highlight the lack of transparency, weak
accountability and poor corporate governance in Vietnam, which is
still in the early stages of transitioning from a centrally
planned to a market-based economy," the AP quotes S&P credit
analyst Ivan Tan said as saying in a statement.
The AP relates that Mr. Tan said Vietnam's state-owned companies
make up about 40% of the country's gross domestic product, and
that Vinashin has cast a cloud of uncertainly over the likelihood
of a government bailout.
Vietnam Shipbuilding Industry Group "was facing the risk of
bankruptcy" in June 2010, according to an Aug. 4 government
statement obtained by Bloomberg News.
Vinashin doesn't have enough funds for some projects after its
customers and lenders were hit by the global recession that
started in 2008. The company also over-diversified its business
activities and hasn't managed its cash flow and debt.
The Troubled Company Reporter-Asia Pacific, citing Bloomberg News,
reported on Sept. 7, 2010, that Vietnamese police arrested four
former officials of Vietnam Shipbuilding Industry Group as the
government extended its investigation into financial difficulties
at the state-owned company. The Ministry of Public Security said
the people arrested on Sept. 3 include two former board members,
Tran Quang Vu and Tran Van Liem, and ex-general directors of two
of Vinashin's subsidiaries, Nguyen Van Tuyen and Nguyen Tuan
Duong. Pham Thanh Binh, the company's former chairman and chief
executive officer, was arrested in August.
Vietnam Shipbuilding Industry Group is a state-owned shipbuilding
company.
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
ADVANCE HEAL-NEW AHGN 16.93 -8.23
ARASOR INTERNATI ARR 19.21 -26.51
ASTON RESOURCES AZT 469.54 -7.49
AUSTAR UNITED AUN 502.05 -284.60
AUSTRALIAN ZI-PP AZCCA 77.74 -2.57
AUSTRALIAN ZIRC AZC 77.74 -2.57
AUTRON CORP LTD AAT 32.39 -13.42
AUTRON CORP LTD AAT 32.39 -13.42
BCD RESOURCES OP BCO 22.09 -61.19
BCD RESOURCES-PP BCOCC 22.09 -61.19
BIRON APPAREL LT BIC 19.71 -2.22
CENTRO PROPERTIE CNP 14253.26 -825.84
CHALLENGER INF-A CIF 2161.41 -339.11
CHEMEQ LTD CMQ 25.19 -24.25
COMPASS HOTEL GR CXH 88.33 -1.08
ELLECT HOLDINGS EHG 18.25 -15.49
HEALTH CORP LTD HEA 11.97 -2.66
HYRO LTD HYO 11.81 -5.15
IVANHOE AUST LTD IVA 49.44 -6.51
JAMES HARDIE NV JHXCC 1980.80 -432.00
JAMES HARDIE-CDI JHX 1980.80 -432.00
MAC COMM INFR-CD MCGCD 8104.42 -103.34
MAVERICK DRILLIN MAD 24.66 -1.30
MISSION NEWENER MBT 32.23 -21.48
NATURAL FUEL LTD NFL 19.38 -121.51
NEXTDC LTD NXT 17.46 -0.14
ORION GOLD NL ORN 11.06 -4.86
RIVERCITY MOTORW RCY 386.88 -809.14
SCIGEN LTD-CUFS SIE 69.94 -29.79
SHELL VILLAGES A SVC 13.47 -1.66
TAKORADI LTD TKG 13.99 -0.41
THOMAS BRYSON TBI 44.32 -54.68
VERTICON GROUP VGP 10.08 -29.12
CHINA
BAOCHENG INVESTM 600892 23.14 -3.54
CHANGAN INFO-A 600706 20.86 -8.49
CHENGDE DALU -B 200160 27.04 -6.64
CHENGDU UNION-A 693 39.10 -17.39
CHINA KEJIAN-A 35 88.96 -189.48
DATONG CEMENT-A 673 20.41 -3.25
DONGGUAN FANGD-A 600656 27.97 -57.39
DONGXIN ELECTR-A 600691 13.60 -21.94
FANGDA JINHUA-A 818 389.84 -46.28
GAOXIN ZHANGTO-A 2075 153.10 -6.31
GUANGDONG ORIE-A 600988 12.25 -5.34
GUANGMING GRP -A 587 49.10 -40.40
GUANGXIA YINCH-A 557 30.39 -32.88
HEBEI BAOSHUO -A 600155 127.82 -394.70
HEBEI JINNIU C-A 600722 238.23 -243.80
HUASU HOLDINGS-A 509 86.70 -4.20
HUNAN ANPLAS CO 156 38.70 -65.44
JIANGSU CHINES-A 805 12.70 -12.83
JINCHENG PAPER-A 820 258.98 -37.74
QINGHAI SUNSHI-A 600381 110.68 -17.35
SHAANXI QINLIN-A 600217 234.36 -36.75
SHANG BROAD-A 600608 69.46 -17.67
SHANG HONGSHENG 600817 15.69 -443.71
SHANGHAI WORLDBE 600757 143.11 -291.80
SHENZ CHINA BI-A 17 24.86 -272.59
SHENZ CHINA BI-B 200017 24.86 -272.59
SHENZHEN DAWNC-A 863 24.38 -155.20
SHENZHEN KONDA-A 48 117.23 -0.23
SHENZHEN ZERO-A 7 44.00 -7.96
SHIJIAZHUANG D-A 958 224.19 -70.54
SICHUAN DIRECT-A 757 108.57 -146.61
SICHUAN GOLDEN 600678 232.67 -48.05
TAIYUAN TIANLO-A 600234 51.64 -28.38
TIANJIN MARINE 600751 78.09 -63.86
TIANJIN MARINE-B 900938 78.09 -63.86
TIBET SUMMIT I-A 600338 91.86 -3.73
TOPSUN SCIENCE-A 600771 162.47 -163.30
WINOWNER GROUP C 600681 11.30 -70.39
WUHAN BOILER-B 200770 275.89 -142.53
WUHAN GUOYAO-A 600421 11.01 -24.78
XIAMEN OVERSEA-A 600870 319.68 -138.16
YANBIAN SHIXIA-A 600462 197.99 -16.19
YIBIN PAPER IN-A 600793 110.12 -0.47
YUEYANG HENGLI-A 622 36.49 -16.37
YUNNAN MALONG-A 600792 145.58 -51.15
ZHANGJIAJIE TO-A 430 37.34 -1.16
HONG KONG
ASIA TELEMEDIA L 376 16.62 -5.37
BUILDMORE INTL 108 13.48 -69.17
CHINA COMMUNICAT 8206 36.62 -6.93
CHINA HEALTHCARE 673 37.98 -2.81
CMMB VISION HOLD 471 41.31 -5.11
COSMO INTL 1000 120 83.67 -25.33
EGANAGOLDPFEIL 48 557.89 -132.86
FULBOND HLDGS 1041 54.53 -24.07
IMAGI INTERNATIO 585 11.29 -21.23
MELCOLOT LTD 8198 63.10 -34.44
MITSUMARU EAST K 2358 18.15 -11.83
NEW CITY CHINA 456 112.20 -14.59
NGAI LIK INDL 332 22.70 -9.69
PAC PLYWOOD 767 72.60 -12.31
PALADIN LTD 495 146.73 -8.91
PCCW LTD 8 5350.25 -416.24
PROVIEW INTL HLD 334 314.87 -294.85
SINO RESOURCES G 223 25.07 -39.10
SMART UNION GP 2700 13.70 -43.29
TACK HSIN HLDG 611 27.70 -53.62
TONIC IND HLDGS 2959 67.67 -37.85
INDONESIA
ASIA PACIFIC POLY 475.69 -841.22
ERATEX DJAJA ERTX 11.30 -18.23
HANSON INTERNATI MYRX 10.84 -14.73
HANSON INT-PREF MYRXP 10.84 -14.73
JAKARTA KYOEI ST JKSW 31.92 -43.20
MITRA INTERNATIO MIRA 970.13 -256.04
MITRA RAJASA-RTS MIRA-R2 970.13 -256.04
MOBILE-8 TELECOM FREN 520.80 -6.99
MULIA INDUSTRIND MLIA 347.35 -351.40
PANASIA FILAMENT PAFI 42.43 -11.04
PANCA WIRATAMA PWSI 30.79 -38.79
PRIMARINDO ASIA BIMA 11.14 -21.39
STEADY SAFE TBK SAFE 11.46 -6.01
SURABAYA AGUNG SAIP 267.24 -83.34
UNITEX TBK UNTX 17.29 -17.14
INDIA
ALCOBEX METALS AML 16.59 -21.47
AMIT SPINNING AMSP 22.70 -1.90
ARTSON ENGR ART 15.63 -1.61
ASHIMA LTD ASHM 63.65 -55.81
ATV PROJECTS ATV 60.46 -55.04
BALAJI DISTILLER BLD 66.32 -25.40
BELLARY STEELS BSAL 451.68 -108.50
BHAGHEERATHA ENG BGEL 22.65 -28.20
CAMBRIDGE SOLUTI CAMB 156.75 -46.79
CFL CAPITAL FIN CEATF 15.35 -46.89
COMPUTERSKILL CPS 14.90 -7.56
CORE HEALTHCARE CPAR 185.36 -241.91
DCM FINANCIAL SE DCMFS 16.06 -9.47
DIGJAM LTD DGJM 98.77 -14.62
DUNCANS INDUS DAI 133.65 -205.38
FIBERWEB INDIA FWB 13.25 -8.17
GANESH BENZOPLST GBP 43.99 -24.57
GEM SPINNERS LTD GEMS 16.44 -1.53
GLOBAL BOARDS GLB 14.98 -7.51
GSL INDIA LTD GSL 37.04 -42.34
GSL NOVA PETROCH GSLN 44.39 -0.93
GUJARAT SIDHEE GSCL 59.44 -0.66
HARYANA STEEL HYSA 10.83 -5.91
HENKEL INDIA LTD HNKL 102.05 -10.24
HIMACHAL FUTURIS HMFC 406.63 -210.98
HINDUSTAN PHOTO HPHT 68.94 -1147.18
HINDUSTAN SYNTEX HSYN 14.15 -3.66
HMT LTD HMT 142.67 -386.80
ICDS ICDS 13.30 -6.17
INDIA FOILS LTD IF 54.77 -2.70
INTEGRAT FINANCE IFC 49.83 -51.32
JCT ELECTRONICS JCTE 122.54 -50.00
JD ORGOCHEM LTD JDO 10.46 -1.60
JENSON & NIC LTD JN 17.91 -84.78
JIK INDUS LTD KFS 20.63 -5.62
JK SYNTHETICS JKS 13.51 -3.03
JOG ENGINEERING VMJ 50.08 -10.08
KALYANPUR CEMENT KCEM 37.45 -45.90
KERALA AYURVEDA KRAP 13.99 -1.18
KINGFISHER AIR KAIR 1781.30 -861.06
KITPLY INDS LTD KIT 48.42 -24.51
LLOYDS FINANCE LYDF 23.77 -10.87
LLOYDS STEEL IND LYDS 415.66 -63.93
LML LTD LML 65.26 -56.77
MILLENNIUM BEER MLB 52.23 -5.22
MILTON PLASTICS MILT 18.31 -40.44
MTZ POLYFILMS LT TBE 31.94 -2.57
NICCO CORP LTD NICC 82.41 -2.85
NICCO UCO ALLIAN NICU 32.23 -71.91
NK INDUS LTD NKI 49.04 -4.95
NRC LTD NTRY 92.88 -36.76
ORIENT PRESS LTD OP 16.70 -0.09
PANCHMAHAL STEEL PMS 51.02 -0.33
PARASRAMPUR SYN PPS 111.97 -317.11
PAREKH PLATINUM PKPL 61.08 -88.85
PEACOCK INDS LTD PCOK 11.40 -14.40
PIRAMAL LIFE SC PLSL 45.82 -32.69
QUADRANT TELEVEN QDTV 173.52 -101.57
RAJ AGRO MILLS RAM 10.21 -0.61
RAMA PHOSPHATES RMPH 34.07 -1.19
RATHI ISPAT LTD RTIS 44.56 -3.93
RELIGARE TECHNOV RTCL 44.13 -1.46
REMI METALS GUJA RMM 102.64 -5.29
RENOWNED AUTO PR RAP 14.12 -1.25
ROLLATAINERS LTD RLT 22.97 -22.24
ROYAL CUSHION RCVP 20.62 -75.53
SCOOTERS INDIA SCTR 18.63 -6.88
SEN PET INDIA LT SPEN 12.99 -25.24
SHAH ALLOYS LTD SA 212.81 -9.74
SHALIMAR WIRES SWRI 24.87 -51.77
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE GANESH FOR SGFO 44.50 -2.89
SHREE RAMA MULTI SRMT 62.72 -45.92
SIDDHARTHA TUBES SDT 76.98 -12.45
SIL BUSINESS ENT SILB 12.46 -19.96
SOUTHERN PETROCH SPET 1584.27 -4.80
SQL STAR INTL SQL 11.69 -1.14
STI INDIA LTD STIB 28.05 -8.04
TAMILNADU TELE TNT 12.82 -5.15
TATA TELESERVICE TTLS 1069.83 -154.99
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 24.55 -8.57
TUTICORIN ALKALI TACF 14.15 -11.20
UNIFLEX CABLES UFC 45.05 -0.90
UNIFLEX CABLES UFCZ 45.05 -0.90
UNIMERS INDIA LT HDU 19.23 -3.23
UNITED BREWERIES UB 2652.00 -242.53
UNIWORTH LTD WW 145.71 -114.87
USHA INDIA LTD USHA 12.06 -54.51
VENTURA TEXTILES VRTL 14.25 -0.33
VENUS SUGAR LTD VS 11.06 -1.08
WINDSOR MACHINES WML 15.52 -24.34
WIRE AND WIRELES WNW 115.34 -34.49
JAPAN
CREDIT ORG S&M 8489 97.07 -9.98
DPG HOLDINGS INC 3781 11.77 -3.99
FIDEC 8423 182.86 -11.14
FUJI TECHNICA 6476 175.22 -18.71
HARAKOSAN CO 8894 190.27 -19.80
KNT 9726 1058.18 -13.37
L CREATE CO LTD 3247 42.34 -9.15
LAND 8918 293.88 -53.39
LCA HOLDINGS COR 4798 51.30 -2.57
PROPERST CO LTD 3236 305.90 -330.20
RAYTEX CORP 6672 41.66 -28.52
SHIN-NIHON TATEM 8893 124.85 -39.12
SHINWA OX CORP 2654 43.91 -30.19
SHIOMI HOLDINGS 2414 201.19 -33.62
TAIYO BUSSAN KAI 9941 171.45 -3.35
TERRANETZ CO LTD 2140 11.63 -4.29
KOREA
AJU MEDIA SOL-PF 44775 13.82 -1.25
DAISHIN INFO 20180 740.50 -158.45
KEYSTONE GLOBAL 12170 10.61 -0.74
KUKDONG CORP 5320 51.19 -1.39
KUMHO INDUS-PFD 2995 5837.32 -967.28
KUMHO INDUSTRIAL 2990 5837.32 -967.28
ORICOM INC 10470 82.65 -40.04
SAMT CO LTD 31330 200.83 -152.09
SEOUL MUTL SAVIN 16560 874.79 -34.13
TAESAN LCD CO 36210 296.83 -91.03
TONG YANG MAGIC 23020 355.15 -25.77
YOUILENSYS CORP 38720 166.70 -12.34
MALAYSIA
AXIS INCORPORATI AXIS 39.22 -86.70
GULA PERAK BHD GUP 91.03 -38.57
HO HUP CONSTR CO HO 65.19 -7.21
LCL CORP BHD LCL 35.64 -130.16
LIMAHSOON BHD LIMA 26.52 -1.56
LUSTER INDUSTRIE LSTI 22.97 -1.72
NGIU KEE CO-BHD NKC 22.98 -0.16
OILCORP BHD OILC 91.94 -63.88
TRACOMA HOLDINGS TRAH 72.64 -6.19
TRANSMILE GROUP TGB 157.66 -35.52
NEW ZEALAND
DORCHESTER PAC DPC 77.28 -2.01
PHILIPPINES
APEX MINING 'B' APXB 45.84 -20.95
APEX MINING-A APX 45.84 -20.95
BENGUET CORP 'B' BCB 84.71 -38.98
BENGUET CORP-A BC 84.71 -38.98
CYBER BAY CORP CYBR 13.30 -83.83
EAST ASIA POWER PWR 42.01 -159.00
FIL ESTATE CORP FC 38.38 -13.37
FILSYN CORP A FYN 22.72 -10.89
FILSYN CORP. B FYNB 22.72 -10.89
GOTESCO LAND-A GO 18.68 -10.86
GOTESCO LAND-B GOB 18.68 -10.86
MRC ALLIED INC MRC 13.26 -5.43
PICOP RESOURCES PCP 105.66 -23.33
STENIEL MFG STN 22.11 -13.42
UNIVERSAL RIGHTF UP 45.12 -13.48
UNIWIDE HOLDINGS UW 52.80 -56.18
VICTORIAS MILL VMC 164.26 -18.20
SINGAPORE
ADV SYSTEMS AUTO ASA 18.08 -11.82
ADVANCE SCT LTD ASCT 16.05 -43.84
HL GLOBAL ENTERP HLGE 97.30 -11.43
JAPAN LAND LTD JAL 191.62 -10.91
LINDETEVES-JACOB LJ 16.86 -6.64
NEW LAKESIDE NLH 19.34 -5.25
SUNMOON FOOD COM SMOON 14.19 -14.22
TT INTERNATIONAL TTI 272.51 -57.42
THAILAND
ABICO HLDGS-F ABICO/F 15.28 -4.40
ABICO HOLDINGS ABICO 15.28 -4.40
ABICO HOLD-NVDR ABICO-R 15.28 -4.40
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
BANGKOK RUBBER BRC 95.77 -72.05
BANGKOK RUBBER-F BRC/F 95.77 -72.05
BANGKOK RUB-NVDR BRC-R 95.77 -72.05
CIRCUIT ELEC PCL CIRKIT 16.79 -96.30
CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30
CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30
DATAMAT PCL DTM 12.69 -6.13
DATAMAT PCL-NVDR DTM-R 12.69 -6.13
DATAMAT PLC-F DTM/F 12.69 -6.13
GRANDE ASSE-NVDR GRAND-R 217.95 -9.04
GRANDE ASSET H-F GRAND/F 217.95 -9.04
GRANDE ASSET HOT GRAND 217.95 -9.04
ITV PCL ITV 34.83 -100.25
ITV PCL-FOREIGN ITV/F 34.83 -100.25
ITV PCL-NVDR ITV-R 34.83 -100.25
K-TECH CONSTRUCT KTECH/F 39.74 -33.07
K-TECH CONSTRUCT KTECH 39.74 -33.07
K-TECH CONTRU-R KTECH-R 39.74 -33.07
KUANG PEI SAN POMPUI 17.70 -12.74
KUANG PEI SAN-F POMPUI/F 17.70 -12.74
KUANG PEI-NVDR POMPUI-R 17.70 -12.74
PATKOL PCL PATKL 52.89 -30.64
PATKOL PCL-FORGN PATKL/F 52.89 -30.64
PATKOL PCL-NVDR PATKL-R 52.89 -30.64
PICNIC CORP-NVDR PICNI-R 110.91 -149.25
PICNIC CORPORATI PICNI 110.91 -149.25
PICNIC CORPORATI PICNI/F 110.91 -149.25
PONGSAAP PCL PSAAP/F 23.00 -9.14
PONGSAAP PCL PSAAP 23.00 -9.14
PONGSAAP PCL-NVD PSAAP-R 23.00 -9.14
SAHAMITR PRESS-F SMPC/F 21.99 -4.01
SAHAMITR PRESSUR SMPC 21.99 -4.01
SAHAMITR PR-NVDR SMPC-R 21.99 -4.01
SUNWOOD INDS PCL SUN 19.86 -13.03
SUNWOOD INDS-F SUN/F 19.86 -13.03
SUNWOOD INDS-NVD SUN-R 19.86 -13.03
THAI-DENMARK PCL DMARK 15.72 -10.10
THAI-DENMARK-F DMARK/F 15.72 -10.10
THAI-DENMARK-NVD DMARK-R 15.72 -10.10
THAI-GERMAN PR-F TGPRO/F 55.31 -8.54
THAI-GERMAN PRO TGPRO 55.31 -8.54
THAI-GERMAN-NVDR TGPRO-R 55.31 -8.54
TRANG SEAFOOD TRS 13.34 -4.01
TRANG SEAFOOD-F TRS/F 13.34 -4.01
TRANG SFD-NVDR TRS-R 13.34 -4.01
UNIVERSAL S-NVDR USC-R 114.26 -20.53
UNIVERSAL STARCH USC 114.26 -20.53
UNIVERSAL STAR-F USC/F 114.26 -20.53
TAIWAN
CHIEN TAI CEMENT 1107 202.42 -33.40
HELIX TECH-EC 2479T 23.39 -24.12
HELIX TECH-EC IS 2479U 23.39 -24.12
HELIX TECHNOL-EC 2479S 23.39 -24.12
PRODISC TECH 2396 253.76 -36.04
TAIWAN KOL-E CRT 1606U 507.21 -147.14
TAIWAN KOLIN-EN 1606V 507.21 -147.14
TAIWAN KOLIN-ENT 1606W 507.21 -147.14
VERTEX PREC-ENTL 5318T 42.86 -0.71
VERTEX PRECISION 5318 42.86 -0.71
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine T.
Fernandez, Joy A. Agravante, Psyche A. Castillon, 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 ***