/raid1/www/Hosts/bankrupt/TCRAP_Public/101221.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
Tuesday, December 21, 2010, Vol. 13, No. 251
Headlines
A U S T R A L I A
BELLA TRUST: Fitch Corrects Press Release; Puts Ratings on Notes
BELLA TRUST: Fitch Assigns Ratings on Various 2010-2 Auto Loans
LEHMAN BROTHERS: Aussie Liquidators Want Revised PTCL Deal
C H I N A
CHINA TEL: Enters into GBNC Pact to Deploy 4G Network in China
NEW ORIENTAL: NASDAQ Grants Request to Remain Listed
SEARCHMEDIA HOLDINGS: Incurs $8MM Loss in Q1; Now NYSE Compliant
SINOBIOMED INC: Acquires All Data Center Assets of Keychain Ltd.
H O N G K O N G
ARLO IX: S&P Downgrades Ratings on Two Series of CDO Notes
EAST ORIENT: Sung Mi Yin Steps Down as Liquidator
EAST WELL: Sung Mi Yin Steps Down as Liquidator
EASTERN ROYAL: Sung Mi Yin Steps Down as Liquidator
FINDISNET LIMITED: Creditors' Proofs of Debt Due January 7
FINE DRAGON: Court Enters Wind-Up Order
FLYOVER INVESTMENT: Seng and Wong Appointed as Liquidators
GOOD HARVEST: Creditors Get 100% & 1.28% Recovery on Claims
GREAT WALL: Court to Hear Wind-Up Petition on January 19
HANG FUNG: Creditors Get 0.21% Recovery on Claims
HIGHYIELD ENTERPRISES: Court Enters Wind-Up Order
HIP LIK: Court Enters Wind-Up Order
HK FOUNDRY: Wong and Chen Step Down as Liquidators
ISHIYAMA SALT: Members' Final Meeting Set for January 18
ITACS (HK): Poh Weng and Tak Man Step Down as Liquidators
LA'POCHE COMPANY: Creditors Get 88% Recovery on Ordinary Claims
MORGAN STANLEY ACES: S&P Withdraws 'D' Rating on 2007-23 Notes
* Hong Kong Bankruptcy Petitions Rise to 681 in November
I N D I A
AIR INDIA: Likely to Get Another Government Aid
AMBICA AGRICO: CRISIL Reaffirms 'BB-' Rating on INR90MM Term Loan
FIBCOM INDIA: CRISIL Assigns 'BB+' Rating to INR300MM Term Loan
B.G.M.CONSORTIUM: CRISIL Rates INR260MM Cash Credit at 'BB+'
MAHAKAUSHAL SUGAR: CARE Assigns 'CARE C' Rating to INR9MM LT Debt
NALAWADE SUGAR: CARE Assigns 'CARE BB' Rating to INR175cr LT Debt
PIONEER ELABS: CRISIL Downgrades Ratings on Various Debts to 'BB'
SANTLAL INDUSTRIES: CRISIL Assigns 'B-' Rating to INR165MM Loan
SHIRAGUPPI SUGAR: CARE Puts 'CARE BB' Rating on INR252.74cr Loan
SHREE BALAJI: CRISIL Assigns 'B+' Rating to INR22.8MM Term Loan
SWAWS CREDIT: CARE Rates INR250cr Bank Loan at 'CARE BB'
SWASTIK COPPER: CRISIL Places 'BB-' Rating on INR50MM Cash Credit
TATA CHEMICALS: Moody's Downgrades Corp. Family Rating to 'Ba2'
TRISONS IMPEX: CARE Rates INR15cr LT Bank Loans at 'CARE BB+'
I N D O N E S I A
FAJAR SURYA: S&P Raises Corporate Credit Rating to 'B+'
XL AXIATA: S&P Raises Corporate Credit Rating to 'BB'
N E W Z E A L A N D
DOUBLE R: Owner Places Firm In Voluntary Liquidation
HANOVER FINANCE: Sues Allied Farmers Over Cancelled NZ$5MM Payment
NEW ZEALAND ASSOCIATION: S&P Keeps 'BB/B' Issuer Credit Rating
OTUWHERO ESTATES: In Receivership; Reports NZ$30MM In Liabilities
PLUM DUFF: Wool Services for Sale Following Administration
S I N G A P O R E
888 GROUP: Court to Hear Wind-Up Petition on December 31
AMARU INC: Restates 2009 10K; Posts $33.7MM in Restated Net Loss
ARMF II: Creditors' Proofs of Debt Due January 17
HSBC FUND: Creditors' Proofs of Debt Due January 17
HSBC SECURITIES: Creditors' Proofs of Debt Due January 17
MULTI-OIL ASIA: Court Enters Wind-Up Order
NACO CONCEPT: Members' Final Meeting Set for December 27
ONE GEORGE: Fitch Upgrades Ratings on Two Senior Classes
PACIFIC HOLDINGS: Creditors' Proofs of Debt Due January 15
STEGLITZ PTE: Creditors' Proofs of Debt Due January 17
SUM KEONG: Creditors' Proofs of Debt Due January 18
SURROUNDING ENTERPRISES: Court to Hear Wind-Up Petition on Dec. 31
WYNTON GROUP: Creditors' Proofs of Debt Due January 17
X X X X X X X X
* S&P Puts Ratings on Nine Asia-Pacific CDOs on Positive Watch
* BOND PRICING: For the Week December 13 to December 17, 2010
- - - - -
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A U S T R A L I A
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BELLA TRUST: Fitch Corrects Press Release; Puts Ratings on Notes
----------------------------------------------------------------
This is a correction of the commentary issued on December 16,
2010, entitled "Fitch Assigns Ratings to Bella Trust Series
2010-2". It corrects the balance amount of each tranche. The
corrected version is:
Fitch Ratings has assigned final ratings to the Bella Trust Series
2010-2 automotive loan receivables-backed securitization, due
December 2011 (Class A1) and June 2017. Ratings, Outlooks and
Loss Severity Ratings are assigned:
-- AUD87.0m Class A1 notes: 'F1+sf';
-- AUD321.0m Class A2 notes: 'AAAsf'; Outlook Stable; Loss
Severity Rating assigned at 'LS1';
-- AUD58.5m Class B notes: 'Asf'; Outlook Stable; Loss Severity
Rating assigned at 'LS2';
-- AUD11.0m Class C notes: 'BBBsf'; Outlook Stable; Loss
Severity Rating assigned at 'LS4';
-- AUD4.0m Class D notes: 'BBsf'; Outlook Stable; Loss Severity
Rating assigned at 'LS5';
-- AUD7.0m Class E notes: 'Bsf'; Outlook Stable; Loss Severity
Rating assigned at 'LS4'; and
-- AUD11.5m Seller notes: 'NRsf'.
The notes were issued by BNY Trust Company of Australia Limited in
its capacity as trustee of Bella Trust Series 2010-2. The Bella
Trust Series 2010-2 is a legally distinct trust established
pursuant to a master trust and security trust deed.
At the cut-off date, the total collateral pool consisted of 22,729
automotive loan receivables totaling approximately AUD495.0m, with
an average size of AUD21,778. The pool is comprised of loan
receivables originated by Capital Finance Australia Limited whose
ultimate parent is the Lloyds Banking Group plc ('AA-'/Outlook
Stable/'F1+'). The pool is comprised of amortizing principal and
interest loans for both new (65.3%) and used (34.7%) vehicles,
with varying balloon amounts payable at maturity. The weighted
average balloon payment for the portfolio is 31.0%.
The expected ratings assigned to the Class A1 and A2 notes are
based on the quality of the collateral; the 18.40% credit
enhancement provided by the subordinate notes; the liquidity
reserve account of 1.0% of outstanding notes, funded by issuance
proceeds; an interest rate swap provided by Lloyds TSB Bank Plc,
Australia branch; and CFAL's auto receivable underwriting and
servicing capabilities.
The expected ratings on the Class B, C, D and E notes are based on
all the strengths supporting the Class A notes, excluding their
credit enhancement levels.
Final ratings are contingent upon receipt of final documentation
conforming to information already received.
BELLA TRUST: Fitch Assigns Ratings on Various 2010-2 Auto Loans
---------------------------------------------------------------
Fitch Ratings has assigned final ratings to the Bella Trust Series
2010-2 automotive loan receivables-backed securitizations, due
December 2011 (Class A1) and June 2017. Ratings, Outlooks and
Loss Severity Ratings are assigned:
-- AUD64.0m Class A1 notes: 'F1+sf';
-- AUD236.0m Class A2 notes: 'AAAsf'; Outlook Stable; Loss
Severity Rating assigned at 'LS1';
-- AUD43.0m Class B notes: 'Asf'; Outlook Stable; Loss Severity
Rating assigned at 'LS2';
-- AUD8.0m Class C notes: 'BBBsf'; Outlook Stable; Loss Severity
Rating assigned at 'LS4';
-- AUD3.0m Class D notes: 'BBsf'; Outlook Stable; Loss Severity
Rating assigned at 'LS5';
-- AUD5.0m Class E notes: 'Bsf'; Outlook Stable; Loss Severity
Rating assigned at 'LS4'; and
-- AUD8.5m Seller notes: 'NRsf'.
The notes were issued by BNY Trust Company of Australia Limited in
its capacity as trustee of Bella Trust Series 2010-2. The Bella
Trust Series 2010-2 is a legally distinct trust established
pursuant to a master trust and security trust deed.
At the cut-off date, the total collateral pool consisted of 22,729
automotive loan receivables totaling approximately AUD495.0m, with
an average size of AUD21,778. The pool is comprised of loan
receivables originated by Capital Finance Australia Limited whose
ultimate parent is the Lloyds Banking Group plc ('AA-'/Outlook
Stable/'F1+'). The pool is comprised of amortizing principal and
interest loans for both new (65.3%) and used (34.7%) vehicles,
with varying balloon amounts payable at maturity. The weighted
average balloon payment for the portfolio is 31.0%.
The ratings assigned to the Class A1 and A2 notes are based on:
the quality of the collateral; the 18.40% credit enhancement
provided by the subordinate notes; the liquidity reserve account
of 1.0% of outstanding notes, funded by issuance proceeds; an
interest rate swap provided by Lloyds TSB Bank Plc, Australia
branch; and CFAL's auto receivable underwriting and servicing
capabilities.
The ratings assigned to the Class B, C, D and E notes are based on
all the strengths supporting the Class A notes, excluding their
credit enhancement levels.
LEHMAN BROTHERS: Aussie Liquidators Want Revised PTCL Deal
----------------------------------------------------------
The liquidators of Lehman Brothers Australia Limited are pushing
for the revision of a settlement agreement between Lehman
Brothers Special Financing Inc. and Perpetual Trustee Company
Limited.
Earlier, LBSF filed a motion for approval of the agreement it
entered into to settle its dispute with Perpetual Trustee in
connection with a series of notes issued under the so-called Dante
program.
LB Australia is a holder of notes issued under the Dante program
that are not within the Mahogany Notes Series I or Mahogany Notes
Series II held by Perpetual Trustee.
Stephen Parbery and Neil Singleton, LB Australia's liquidators,
want the terms of the deal revised to clarify that noteholders
other than the holders of the Mahogany notes held by Perpetual
Trustee won't be affected by the deal.
"The liquidators only object to the motion to the extent that it
could be interpreted to bind the liquidators or preclude them
from bringing an action against the Debtors in connection with
the liquidators' holdings in certain notes issued under the Dante
program," said LB Australia's lawyer, James Sprayregen, Esq., at
Kirkland & Ellis LLP, in New York.
The motion also drew flak from Belmont Park Investments Pty Ltd.
and other noteholders. They expressed concern that approval of
the settlement would preclude them from litigating the issues in
the lawsuit that LBSF filed against BNY Corporate Trustee
Services Limited.
To recall, the terms of the settlement agreement call for the
dismissal of the lawsuit, and an appeal by BNY to reconsider the
Court's order issued on July 19, 2010, in favor of LBSF. The
case filed by Perpetual in London to seek payment from BNY
Corporate as well as the appeal filed by LBSF in connection with
the case will also be dismissed, according to the agreement.
"While the Belmont noteholders believe that BNY is acting in
different representative capacities and no preclusive effect on
them should attach, there remains the risk that BNY's support for
the settlement and dismissal of the pending appeal potentially
will subject the Belmont noteholders to the preclusive effect of
res judicata and collateral estoppel," Mr. Sprayregen said.
BNY said in a court filing that it does not oppose the proposed
settlement, pointing out that its approval won't affect the
rights or claims of the holders of any other notes issued under
the Dante program.
Robert Hershan, managing director of Alvarez and Marsal North
America LLC, said the settlement will allow LBSF to recover the
value of the transactions for its estate while avoiding the costs
and uncertainty associated with continuation of the pending
lawsuits.
In a related development, LBSF filed with the Court a copy of an
amendment to the Termination and Settlement Agreement entered
into on December 8, 2010, that makes minor modifications to the
agreement. The document is available without charge at:
http://bankrupt.com/misc/LBHI_AmAgreementPerpetual.pdf
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
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C H I N A
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CHINA TEL: Enters into GBNC Pact to Deploy 4G Network in China
--------------------------------------------------------------
On December 13, 2010, China Tel Group Inc. entered into a
Subscription and Shareholder Agreement with Golden Bridge Network
Communications Co., Ltd., a limited liability company organized
under the laws of the People's Republic of China. Pursuant to the
Agreement, ChinaTel and GBNC will each contribute certain
resources in order to deploy and operate a 4G telecommunications
network in the PRC.
The material terms of the Agreement are:
* GBNC will contribute to the joint venture its right, title
and interest in certain assets and entitlements it holds in
the PRC, which include existing wireless broadband access
licenses and concessions in two PRC cites; internet service
provider licenses in 26 PRC cities; GBNC's rights to apply
for additional WBA and ISP licenses in additional cities and
regions throughout the PRC; and other contracts and
relationships. ChinaTel will contribute to the joint venture
its technical expertise and the investment capital to finance
the capital expenditures, operating expenses, and other
negative cash flow of the joint venture.
* The joint venture between GBNC and ChinaTel is represented by
a series of new entities to be created, with interlocking
ownership, each referred to in the Agreement by a fictitious
name, with the actual name of each entity to be agreed based
on legal and marketing considerations. The Entities are "New
Co," a parent company to be created in the Cayman Islands;
"HK Co," a wholly owned subsidiary of New Co to be created in
Hong Kong; and "WFOE," a wholly owned subsidiary of HK Co to
be created in the PRC in a manner so as to qualify as a
"wholly owned foreign enterprise" under PRC law. GBNC will
subscribe to 51% and ChinaTel 49% of the stock of New Co.
* The Board of Directors of each of the Entities will be
comprised of five Directors, three of whom will be appointed
by ChinaTel and two by GBNC. The Bylaws of each of the
Entities will contain various provisions for the protection
of majority and minority stockholders, requiring a 75% super-
majority vote of shareholders on certain corporate action,
and including joint signature on bank accounts, and custody
of the corporate seal or "chop" of each of the Entities to be
held in escrow by a neutral third party.
* In addition to the Entities, a management company will be
created in Hong Kong or other jurisdiction to be agreed
between GBNC and ChinaTel. The management company will be
controlled by ChinaTel and will enter into a management
contract with WFOE to provide marketing, sales, additional
spectrum acquisition, and other services to WFOE.
* ChinaTel, or a company controlled by ChinaTel, will purchase
and then lease to WFOE at market rates such equipment and
other CAPEX assets as are required for deployment of the
joint venture's WBA networks. The lease may include an
option for WFOE to purchase the equipment for a nominal sum
when the total amount of lease payments received equals
repayment of all amounts ChinaTel has paid, including
financing costs to others, to purchase the equipment.
* The following events will each occur within 10 days after
WFOE is registered to do business:
i) ChinaTel will issue to the management company 50
million shares of its Series A common stock, of which 5
million shares will be issued to GBNC's CEO, Fu Jian-
Hui,
ii) ChinaTel will pay in $5 million as the initial
registered capital of WFOE, and
iii) GBNC will transfer to WFOE relevant rights of the
assets and entitlements held by GBNC and identified in
the Agreement. As to any asset or right that is
incapable of transfer of ownership, GBNC will cooperate
to contract with, lease, or otherwise convey to WFOE
all or so much of the beneficial rights in such asset
or right to the maximum extent authorized under PRC
law.
If ChinaTel fails to deposit the initial registered
capital and shares within the time required, GBNC has
the right to terminate the Agreement.
* The $5 million initial registered capital of WFOE will be
used to meet part of the cash requirements for CAPEX and OPEX
related to deployment and operation of WBA networks in the
first two cities to be deployed, Fuzhou and Xiamen. ChinaTel
will also pay or arrange financing for up to $20 million
towards other CAPEX and OPEX for deployment and operation of
WBA networks in those two cities. Prior to the registration
of WFOE to do business, ChinaTel will advance funds necessary
to commence immediately engineering work required for
deployment of WBA networks in Fuzhou and Xiamen.
* When GBNC obtains WBA licenses for seven additional cities --
Quanzhou, Zhang Zhou, Longyan, Putian, Sanming, Nanping and
Ningde -- ChinaTel will pay to increase the registered
capital of WFOE from $5 million to $20 million and will pay
or arrange financing for up to $80 million towards other
CAPEX and OPEX for deployment and operation of WBA networks
in those seven additional cities.
* When GBNC obtains WBA licenses for cities in addition to the
first nine cities specifically identified, ChinaTel will pay
or arrange financing for CAPEX and OPEX required for
deployment and operation of WBA networks in those additional
cities, based on budgets to be agreed and formulas similar to
actual expenses for the first nine cities.
* WFOE will be entitled to all revenue that is capable of being
realized by the joint venture, including: (i) fees charged to
WBA and ISP subscribers; (ii) lease, transport or co-location
fees charged to third-party carrier users of any
infrastructure equipment; (iii) lease or sale of hardware or
devices marketed by WFOE; and (iv) value added services and
applications.
* The financial goals of the joint venture include: (i)
permitting ChinaTel to fully report the financial results of
WFOE as part of ChinaTel's consolidated financial statements;
(ii) permitting New Co and HK Co to control the PRC-based
assets of the joint venture, and the revenue to be generated
from those assets; (iii) when PRC law allows, transforming
WFOE into a foreign-invested telecommunications enterprise,
so that ChinaTel's interests in the Entities can be converted
to a direct 49% ownership in the FITE; and (iv) eventual
public listing of WFOE's operations on a stock exchange, such
as HKSE, NYSE, NASDAQ or London AIM in order to expand the
base of equity capital available for deployment and expansion
of the joint venture's WBA networks, and to recapture some or
all of the respective investments of GBNC and ChinaTel.
* From the proceeds of any public listing of WFOE's operations
on a stock exchange, ChinaTel will be entitled to repayment
of the shortfall between lease payments and amounts ChinaTel
has paid, including financing costs to others but without
interest to ChinaTel, and repayment of all other amounts
ChinaTel has invested in CAPEX or OPEX.
* Except as to the proceeds generated by a public listing of
WFOE's operations on a stock exchange, Golden Bridge and
ChinaTel contemplate that substantially all excess free cash
flow and net operating income generated by the joint venture
will be re-invested in the form of deploying additional
cities and expanding geographic coverage and capacity in
previously deployed cities for a period of ten years.
* All profits in excess of amounts required to deploy
additional cities, expand coverage and capacity in previously
deployed cities, and other reserves for taxes, working
capital, loan repayment, and other contingencies, will be
distributed in full in the form of dividends.
The source of funds for the acquisition of assets is the Isaac
Organization Inc., a Canadian corporation, pursuant to the Amended
and Restated Stock Purchase Agreement between ChinaTel and Isaac
dated May 9, 2010. It is anticipated that ZTE Corporation, a PRC
company, will offer ChinaTel a favorable financing proposal for
CAPEX and OPEX, and facilitate ChinaTel's application for debt
financing by banks with which ZTE has relationships.
About China Tel
Based in San Diego, California, and Shenzhen, China, China Tel
Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/--
provides high speed wireless broadband and telecommunications
infrastructure engineering and construction services. Through its
controlled subsidiaries, the Company provides fixed telephony,
conventional long distance, high-speed wireless broadband and
telecommunications infrastructure engineering and construction
services. ChinaTel is presently building, operating and deploying
networks in Asia and South America: a 3.5GHz wireless broadband
system in 29 cities across the People's Republic of China with and
for CECT-Chinacomm Communications Co., Ltd., a PRC company that
holds a license to build the high speed wireless broadband system;
and a 2.5GHz wireless broadband system in cities across Peru with
and for Perusat, S.A., a Peruvian company that holds a license to
build high speed wireless broadband systems.
The Company's balance sheet at June 30, 2010, showed $8.9 million
in total assets, $26.2 million in total liabilities, and a
stockholders' deficit of $17.3 million.
Mendoza Berger & Company, LLP, in Irvine, Calif., expressed
substantial doubt about the Company's ability to continue as a
going concern, following the Company's 2009 results. The
independent auditors noted that the Company has incurred a net
loss of $56.0 million for 2009, cumulative losses of
$165.4 million since inception, a negative working capital of
$68.8 million and a stockholders' deficit of $63.2 million, and
that the Company's viability is dependent upon its ability to
obtain future financing and the success of its future operations.
NEW ORIENTAL: NASDAQ Grants Request to Remain Listed
----------------------------------------------------
New Oriental Energy & Chemical Corp. has received a letter of
determination from The NASDAQ Stock Market granting the Company's
request to remain listed on NASDAQ, subject to monitoring by the
Hearings Panel until December 15, 2011 to ensure the Company
remains in continued compliance with the shareholders' equity rule
and all other listing requirements. Additional details on the
determination are available in the 8-K being filed Thursday by the
Company with the Securities and Exchange Commission.
Mr. Chen Si Qiang, President and CEO of the Company, stated, "We
are extremely pleased with this decision. Be assured we will make
every effort to remain in compliance, so our shareholders continue
to have the benefits associated with shares that are listed on The
NASDAQ Stock Market."
As previously disclosed on July 9, 2010, the Company received
notification from NASDAQ that the Company's stockholders' equity
of $1,225,480, as reported in the Company's Annual Report on Form
10-K for the fiscal year ended March 31, 2010, did not comply with
the minimum stockholders' equity requirement of $2,500,000 for
continued listing on The NASDAQ Capital Market pursuant to NASDAQ
Listing Rule 5550(b)(1). On August 27, 2010, as provided in the
NASDAQ Listing Rules, the Company submitted to NASDAQ a plan and
timeline to achieve and sustain compliance.
As previously disclosed on September 16, 2010, the Company
received a determination letter stating that NASDAQ had denied the
Company's request for continued listing on The NASDAQ Capital
Market. The determination letter stated that the Company could
appeal the delisting determination by requesting a hearing and
presenting its plan of compliance at such hearing.
The Company appealed the delisting determination and subsequently
presented its plan of compliance at a hearing with NASDAQ.
Following the hearing, the Company provided additional information
at the request of NASDAQ in support of its plan of compliance.
On December 14, 2010, the Company received a determination letter
stating that NASDAQ has granted the Company's request to remain
listed on The NASDAQ Capital Market. NASDAQ also invoked its
authority under Listing Rule 5815(d)(4)(A) to impose a Hearings
Panel Monitor to monitor the Company's continued compliance with
the stockholders' equity rule through December 15, 2011.
About New Oriental
New Oriental Energy & Chemical Corp. (NASDAQ: NOEC)
-- http://www.neworientalenergy.com/-- was incorporated in the
State of Delaware on November 15, 2004. The Company is an
emerging coal-based alternative fuels and specialty chemical
manufacturer based in Henan Province, in the Peoples'
Republic of China. The Company's core products are urea and other
coal-based chemicals primarily utilized as fertilizers. All of
the Company's sales are made through a network of distribution
partners in the Peoples' Republic of China.
As reported in the Troubled Company Reporter on July 2, 2010,
Weinberg & Company, P.A., in Boca Raton, Florida, expressed
substantial doubt about the Company's ability to continue as a
going concern, following its results for the fiscal year ended
March 31, 2010. The independent auditors noted that the Company
incurred a net loss of $12.8 million and has negative cash flows
from operations of $7.5 million for the year ended March 31, 2010,
and has a working capital deficit of $44.1 million at March 31,
2010.
SEARCHMEDIA HOLDINGS: Incurs $8MM Loss in Q1; Now NYSE Compliant
----------------------------------------------------------------
SearchMedia Holdings Limited delivered a Form 10-Q with the U.S.
Securities and Exchange Commission, reporting a net loss of $3.35
million on $8.47 million of advertising service revenues for the
three months ended March 31, 2010, compared to a net loss of
$14.35 million on $10.89 million of advertising service revenues
for the same period a year ago.
The Company's balance sheet at March 31, 2010, showed
$93.30 million in total assets, $51.32 million in total
liabilities, and a stockholders' equity of $41.98 million.
The Company believes it is compliant and up-to-date with NYSE Amex
listing requirements.
Wilfred Chow, Chief Financial Officer of SearchMedia, commented,
"[Thurs]day's filing marks the completion of the outstanding items
necessary to meet our NYSE Amex listing requirements and we move
forward with even more focus on driving SearchMedia's growth
through operational enhancements and business development
efforts."
The results reflect the shifting of certain revenue to the second
quarter of 2010 from the first quarter of 2010, due to a delay in
several billboard campaigns. Results also reflect certain non-
recurring charges, such as a loss on impairment of goodwill of
$1.7 million and an abandonment loss of $1.3 million.
Wilfred Chow continues, "Our first quarter 2010 results differ
from the preliminary results announced on May 24, 2010. This is
in part due to a shift in the timing of revenue from the 2010
first quarter to the 2010 second quarter. This shift partially
drove quarter over quarter growth in the second and third
quarters. We also expect this growth momentum to continue in the
upcoming quarters, driven by the management team reorganization
and significant operational enhancements implemented throughout
this year. Additionally, year over year results for the first
quarter of 2010 reflect the fact that the first quarter of 2009
was particularly strong due to uniquely active campaign execution
that quarter."
Paul Conway, the Company's Chief Executive Officer, stated, "Since
the filing of our Form 10-K last month, our concession and
acquisition pipeline opportunities have improved. We believe the
completion of our NYSE Amex listing requirements, and the removal
of that uncertainty, will further enhance our growing pipeline.
Moving forward, we believe we have laid a strong foundation from
which to build SearchMedia into one of China's leading media
companies."
Board of Directors Changes
On December 13, 2010, the Company filed a Form 6-K to report the
resignation of Earl Yen and Jianzhong Qu from its Board of
Directors. Mr. Yen, the founder and managing director of CSV
Capital Partners, and Mr. Qu, a principal of CSV Capital Partners,
were appointed to the Board by the representatives of the
former stockholders of SearchMedia International Limited.
Indemnification Claim Update
The Company continues to pursue all remedies available to it,
including legal remedies and potential cancellation of some of
the shares issued in the Share Exchange Agreement. There were
approximately 22 million fully diluted shares outstanding as of
December 15, 2010, of which approximately 9 million were
issued to the former stockholders of SearchMedia International
Limited.
A full-text copy of the quarterly report on Form 10-Q is available
for free at http://ResearchArchives.com/t/s?7120
A full-text copy of the earnings release is available for free
at http://ResearchArchives.com/t/s?7121
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.
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.
SINOBIOMED INC: Acquires All Data Center Assets of Keychain Ltd.
----------------------------------------------------------------
The Board of Directors of Sinobiomed Inc. announced the
acquisition of all data center assets from Keychain, Ltd., a
Hong Kong limited company, specializing in international
telecommunications consulting, management and hosting services on
behalf of clients with strategic connectivity and network
infrastructure requirements in major world cities.
"We believe that the acquisition of the Keychain data center
assets will enable Sinobiomed to utilize Keychain's extensive
telecommunications infrastructure and expertise, and pursue
further growth initiatives," said Mr. George Yu, Sinobiomed's
Chief Executive Officer.
About Sinobiomed
Sinobiomed Inc. formerly CDoor Corp. (OTC BB: SOBM)
-- http://www.sinobiomed.com/-- was incorporated in the State of
Delaware. The Company is a Chinese developer of genetically
engineered recombinant protein drugs and vaccines. Based in
Shanghai, Sinobiomed currently has 10 products approved or in
development: three on the market, four in clinical trials and
three in research and development. The Company's products respond
to a wide range of diseases and conditions, including: malaria,
hepatitis, surgical bleeding, cancer, rheumatoid arthritis,
diabetic ulcers and burns, and blood cell regeneration.
Going Concern Doubt
Schumacher & Associates Inc., in Denver, expressed substantial
doubt about Sinobiomed Inc.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the year ended December 31, 2007. The auditing
firm reported that the Company has experienced losses since
commencement of operations and has negative working capital and a
stockholders' deficit.
The Company is in the process of researching, developing, testing
and evaluating proposed new pharmaceutical products and has not
yet determined whether these products are technically or
economically feasible. Management's plan is to actively search
for new sources of capital, including government and non-
government grants toward research projects and new equity
investment.
================
H O N G K O N G
================
ARLO IX: S&P Downgrades Ratings on Two Series of CDO Notes
----------------------------------------------------------
Standard & Poor's Ratings Services lowered the ratings on two
series of ARLO IX Ltd. collateralized debt obligation notes,
following a downgrade on the authorized investments supporting the
transaction. At the same time, S&P removed the ratings from
CreditWatch with negative implications, where they were placed on
Nov. 8, 2010.
The ratings on ARLO IX Ltd. Series 2008 RRF9 and RRF10 are linked
to the ratings on bonds issued by Reliance Rail Pty. Ltd., an
Australia-based company that was downgraded on Dec. 16, 2010.
Ratings Lowered
Rating To Rating From
--------- -----------
ARLO IX Ltd. Series 2008 (RRF9) B BBB-/Watch Neg
ARLO IX Ltd. Series 2008 (RRF10) B BBB-/Watch Neg
EAST ORIENT: Sung Mi Yin Steps Down as Liquidator
-------------------------------------------------
Sung Mi Yin stepped down as liquidator of East Orient (HK) Limited
on December 17, 2010.
EAST WELL: Sung Mi Yin Steps Down as Liquidator
-----------------------------------------------
Sung Mi Yin stepped down as liquidator of East Well Development
Limited on December 17, 2010.
EASTERN ROYAL: Sung Mi Yin Steps Down as Liquidator
---------------------------------------------------
Sung Mi Yin stepped down as liquidator of Eastern Royal Limited on
December 17, 2010.
FINDISNET LIMITED: Creditors' Proofs of Debt Due January 7
----------------------------------------------------------
Creditors of Findisnet Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
January 7, 2011, to be included in the company's dividend
distribution.
The company's liquidators are:
John Robert Lees
Mat Ng
20/F, Henley Building
5 Queen's Road
Central, Hong Kong
FINE DRAGON: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on December 8, 2010,
to wind up the operations of Fine Dragon Trading Limited.
The acting official receiver is Lee Mei Yee May.
FLYOVER INVESTMENT: Seng and Wong Appointed as Liquidators
----------------------------------------------------------
Natalia Seng Sze Ka Mee and Cynthia Wong Tak Yee on December 7,
2010, were appointed as liquidators of Flyover Investment Limited.
The liquidators may be reached at:
Natalia Seng Sze Ka Mee
Cynthia Wong Tak Yee
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
GOOD HARVEST: Creditors Get 100% & 1.28% Recovery on Claims
-----------------------------------------------------------
Good Harvest Textiles Limited, which is in creditors' liquidation,
will declare dividend to its creditors on December 31, 2010.
The company will pay 100% for first and final preferential
dividend and 1.25% for ordinary claims.
The company's liquidator is:
Osman Arab
29/F, Caroline Centre
Lee Gardens Two
28 Yun Ping Road
Hong Kong
GREAT WALL: Court to Hear Wind-Up Petition on January 19
--------------------------------------------------------
A petition to wind up the operations of Great Wall Security
consultants Limited will be heard before the High Court of Hong
Kong on January 19, 2011, at 9:30 a.m.
Chiu Tak cheung filed the petition against the company.
HANG FUNG: Creditors Get 0.21% Recovery on Claims
-------------------------------------------------
Hang Fung Jewellery Company Limited, which is in liquidation, will
declare dividend to its creditors on December 28, 2010.
The company will pay 0.21% for ordinary claims.
The company's liquidators are:
Darach E. Haughey
Edmond Wah Bon Ching
Yeung Lui Ming (Edmund)
32nd Floor, One Pacific Place
88 Queensway
Hong Kong
HIGHYIELD ENTERPRISES: Court Enters Wind-Up Order
-------------------------------------------------
The High Court of Hong Kong entered an order on December 8, 2010,
to wind up the operations of Highyield Enterprises Limited.
The acting official receiver is Lee Mei Yee May.
HIP LIK: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on December 8, 2010,
to wind up the operations of Hip Lik (Hong Kong) Limited.
The acting official receiver is Lee Mei Yee May.
HK FOUNDRY: Wong and Chen Step Down as Liquidators
--------------------------------------------------
Wong Tak Man Stephen and Chen Yung Ngai Kenneth stepped down as
liquidators of Hong Kong Foundry Association Limited on
December 7, 2010.
ISHIYAMA SALT: Members' Final Meeting Set for January 18
--------------------------------------------------------
Members of Ishiyama Salt Limited will hold their final meeting on
January 18, 2011, at 10:00 a.m., at the 7th Floor, Alexandra
House, at 18 Chater Road, Central, in Hong Kong.
At the meeting, Philip Brendan Gilligan, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
ITACS (HK): Poh Weng and Tak Man Step Down as Liquidators
---------------------------------------------------------
Wong Poh Weng and Wong Tak Man Stephen stepped down as liquidators
of Itacs (HK) Limited on December 10, 2010.
LA'POCHE COMPANY: Creditors Get 88% Recovery on Ordinary Claims
---------------------------------------------------------------
La'Poche Company Limited, which is in liquidation, will declare
dividend to its creditors on December 31, 2010.
The company will pay 100% for first and final preferential
dividend and 88% for ordinary claims.
The company's liquidator is:
Chan Ho Yin Graham
Unit 1, 15/F
Centre, 99 Queen's Road
Central, Hong Kong
MORGAN STANLEY ACES: S&P Withdraws 'D' Rating on 2007-23 Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its rating on Morgan
Stanley ACES SPC Series 2007-23 following a reduction of the
principal amount of the notes to zero and the consequent unwind of
the notes.
The rating action on the affected transaction is:
Morgan Stanley ACES SPC
Name Rating To Rating From
---- --------- -----------
Series 2007-23 N.R. D (sf)
N.R. - Not rated
* Hong Kong Bankruptcy Petitions Rise to 681 in November
--------------------------------------------------------
Bloomberg News, citing Hong Kong's Official Receiver's Office,
reports that the number of bankruptcy petitions in Hong Kong rose
to 681 in November from 584 in October while the number of
compulsory winding-up petitions declined to 37 from 43.
=========
I N D I A
=========
AIR INDIA: Likely to Get Another Government Aid
-----------------------------------------------
The Hindu reports that India's Prime Minister Manmohan Singh on
Wednesday said the government is actively considering helping
national carrier Air India amid the demand from Civil Aviation
Ministry for the induction of INR1,200 crore as fresh equity.
Along with the Air India, state-owned telecom firm BSNL is also
likely to get the government support, the Hindu says.
"Enterprises which are facing difficulties, such as Air India and
BSNL, are receiving the due attention of the government,"
Dr. Singh said, according to the Hindu.
According to the Hindu, Air India is seeking induction of fresh
equity to improve its balance sheet after reporting loss of
INR5,551 crore in 2009-10.
The Hindu notes that Civil Aviation Minister Praful Patel met Plan
Panel Deputy Chairman Montek Singh Ahluwalia last week in this
regard.
A Cabinet note on equity infusion proposal, the Hindu relates, has
already been circulated among the key economic ministries
including Finance.
If the proposal is approved, it would be the second tranche of
equity infusion since 2008-09 when INR800 crore was released to
the beleaguered carrier, the Hindu adds.
About Air India
Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world. Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation. The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes. The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand. The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.
* * *
The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown. The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09. Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.
The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15. The plan includes raising its fleet strength to
as many as 275 planes in five years from 148 now. Air India
Chairman and Managing Director Arvind Jadhav said the new 100-page
turnaround plan for 2010-14, which ruled out any job cuts or wage
reductions and, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.
AMBICA AGRICO: CRISIL Reaffirms 'BB-' Rating on INR90MM Term Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Ambica Agrico Exports
Pvt Ltd continue to reflect Ambica Agrico's weak financial risk
profile, marked by high gearing, small net worth and weak debt
protection measures, and exposure to risks related to a small
scale of operations in the rice industry, unfavorable changes in
government policies, volatility in raw material prices, and
vagaries of the monsoon. These weaknesses are, however, partially
offset by the benefits that Ambica Agrico derives from its
promoter's experience in, and the healthy growth prospects for,
the rice industry.
Facilities Ratings
---------- -------
INR40 Million Cash Credit Facility BB-/Stable (Reaffirmed)
INR90 Million Term Loan BB-/Stable (Reaffirmed)
INR70 Million Export Packing Credit P4+ (Reaffirmed)
INR50 Million Foreign Bill Purchase P4+ (Reaffirmed)
Outlook: Stable
CRISIL believes that Ambica Agrico's overall credit profile will
remain constrained, over the medium term, by its small scale of
operations and large working capital requirements. The outlook may
be revised to 'Positive' if the company scales up its operations,
while improving its profitability and capital structure.
Conversely, the outlook may be revised to 'Negative' if Ambica
Agrico's working capital management deteriorates, resulting in
pressure on liquidity, or if the company's capital structure
worsens further from the present levels.
About Ambica Agrico
Set up in 1983 as a proprietorship firm, by Mr. Ishwar Chand Goel,
Ambica Agrico was reconstituted as a private limited company in
November 2006. The company mills, processes, and sells basmati
rice. Its plant at Taraori at Karnal (Haryana) currently has
milling capacity of 12 tonnes per hour (tph), and grading and
sorting capacity of 12 tph. The company also purchases semi-
processed rice from smaller mills in the area, and sorts it before
exporting the same. Exports accounted for about 50 per cent of its
total revenues in 2009-10 (refers to financial year, April 1 to
March 31).
Ambica Agrico reported a profit after tax (PAT) of INR7.1 million
on net sales of INR1123 million for 2009-10, against a PAT of
INR7.7 million on net sales of INR693 million for 2008-09.
FIBCOM INDIA: CRISIL Assigns 'BB+' Rating to INR300MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Fibcom India Ltd.
Facilities Ratings
---------- -------
INR475.0 Million Cash Credit Limit BB+/Stable (Assigned)
INR300.0 Million Term Loan BB+/Stable (Assigned)
INR450.00 Million Bank Guarantee/ P4+(Assigned)
Letter of Credit
The ratings reflect Fibcom's limited ability to cater to the
requirements of the technology-intensive telecommunications
(telecom) industry, on account of low investment in research and
development (R&D) in the past, leading to a limited product
portfolio. The ratings also factor in the company's small scale
of operations with a low operating margin, and its large working
capital requirements. These weaknesses are partially offset by
Fibcom's comfortable capital structure, improving operating
efficiencies, driven by increased R&D focus to enhance its product
portfolio, and the continuous funding support it receives from its
promoters.
Outlook: Stable
CRISIL believes that Fibcom's business risk profile will remain
constrained over the medium term by its limited ability to cater
to the requirements of telecom operators, resulting in a small
scale of operations and a low operating margin. Its financial
risk profile is, however, expected to remain moderate, driven by
its comfortable capital structure and continuous funding support
from its promoters. The outlook may be revised to 'Positive' if
Fibcom's launch of new-generation products leads to an increase in
orders for the same, resulting in more-than-expected growth in
revenues and cash accruals. Conversely, the outlook may be
revised to 'Negative' in case of a delay in the launch of these
products, leading to lower-than-expected increase in sales, and
consequently pressure on cash accruals.
About Fibcom India
Fibcom is part of the Lalit Suri group (promoters of Subros Ltd
and Bharat Hotels Ltd). It manufactures telecom networking
equipment, especially transmission equipment such as synchronous
digital hierarchy (SDH) and dense wavelength division multiplexing
(DWDM). Fibcom was incorporated in 1994 as a joint venture between
ITI Ltd (Government of India undertaking) and Tellabs India Pvt
Ltd (Tellelabs; subsidiary of Tellabs Denmark AS) to manufacture
SDH and DWDM. The low focus on R&D under the previous management
resulted in limited product offerings, leading to a smaller share
of business. This resulted in a continuous reduction in the
company's topline till 2004-05 (refers to financial year, April 1
to March 31). In October 2005, when the Lalit Suri group acquired
the company, it started concentrating on R&D.
Fibcom reported a net loss of INR54 million on an operating income
of INR794 million for 2009-10, against a net loss of INR51 million
on an operating income of INR806 million for 2008-09.
B.G.M.CONSORTIUM: CRISIL Rates INR260MM Cash Credit at 'BB+'
------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of B.G.M. Consortium Ltd.
Facilities Ratings
---------- -------
INR260 Million Cash Credit BB+/Stable (Assigned)
INR20 Million Standby Line of Credit P4+ (Assigned)
INR450 Million Bank Guarantee P4+ (Assigned)
The ratings reflect BGM's geographically and client concentrated
revenue profile, large working capital requirements and exposure
to risks related to the tender-based business and to intense
competition in the construction industry. These rating weaknesses
are partially offset by stable revenue profile on account of
healthy order book position and its promoters' extensive
experience in the construction industry.
Outlook: Stable
CRISIL believes that BGM will benefit over the medium term from
the healthy growth prospects of the civil construction industry.
The outlook may be revised to 'Positive' if BGM strengthens its
business risk profile by enhancing segmental and geographical
diversity in its revenue base, and increases cash accruals.
Conversely, the outlook may be revised to 'Negative' in case of
any large, debt-funded capital expenditure (capex) programme or
acquisition, or a decline in operating profitability, leading to
deterioration in the company's financial risk profile.
About B.G.M. Consortium
BGM was set up in April 2000 by Mr. Rathin Mukherjee to undertake
civil and construction development contracts. The company
gradually increased its focus on projects for public sector units
(PSUs). In 2007, Mr. Anil Bhutoria and his family bought a
controlling stake in the company. BGM was converted into a public
limited company in August 2008 and is currently managed by both
the promoters.
BGM has been undertaking civil projects for PSUs such as National
Building Construction Corporation Ltd, Hindustan Petroleum
Corporation Ltd, Bharat Petroleum Corporation Ltd, and Kolkata
Environmental Improvement Project. These projects are mostly
tender-based and fixed-price contracts.
BGM reported a profit after tax (PAT) of INR26 million on net
sales of INR758 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR21 million on net sales
of INR726 million for 2008-09.
MAHAKAUSHAL SUGAR: CARE Assigns 'CARE C' Rating to INR9MM LT Debt
-----------------------------------------------------------------
CARE assigns 'CARE C' rating to the long-term bank facilities of
Mahakaushal Sugar And Power Industries Ltd.
Amount
Facilities (INR cr) Ratings
---------- -------- -------
Long-term Loan 14.72 'CARE C' Assigned
Long-term Bank Facilities 9.00 'CARE C' Assigned
Rating Rationale
The rating is primarily constrained on account of restructuring of
debt in the past due to significant deterioration in the
financials and instances of delays in servicing of interest
obligation to the lenders. MSPL's operations in the highly
regulated sugar industry, small size of operations and weak
financial profile further constrain the rating.
MSPL is promoted by the Raza family who has over 15 years of
experience in the business of manufacturing of gud, khandsari and
sugar. The company has an installed capacity of 2,500 TCD
(tonnes crushed per day) for sugar manufacturing at its facility
located in the Narsinghpur district of Madhya Pradesh.
On a total income of INR5.04 crore, MSPL incurred a net loss of
INR4.06 crore for the financial year ended FY09 (Sep.2009).
NALAWADE SUGAR: CARE Assigns 'CARE BB' Rating to INR175cr LT Debt
-----------------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of Nalawade
Sugar Mills Ltd.
Amount
Facilities (INR cr) Ratings
---------- -------- -------
Long-term Bank Facilities 175.00 'CARE BB' Assigned
Rating Rationale
The rating is constrained by Nalawade Sugar Mills Limited (NSML)
being a non-integrated player with small size and short track
record of operations, short-term relationship with farmers (though
the company is taking necessary steps through extension efforts to
build relationship with farmers), weak capital structure as well
as presence of NSML in a cyclical and highly regulated industry.
However, the rating draws strength from NSML's experienced
management and proximity of NSML's plant to high recovery
sugarcane fields. Going forward, ability of NSML to improve
sugarcane crushing volumes and completion of its ongoing project
(co-generation unit and expansion of the existing sugar mill
capacity) within the envisaged time and cost estimates will be the
key rating sensitivities.
NSML is a Public Limited Company incorporated in June 1999 by
Mr. Sangramsinh Nalawade. NSML commenced operations during
December 2007. NSML operates a sugar mill in the Kolhapur
District, Maharashtra with sugar cane crushing capacity of 2,500
TCD as on March 31, 2010. NSML is expanding the installed
capacity of the sugar mill to 3,500 TCD and is setting up a co-
generation unit of 20 MW, with a total capital outlay of INR123.4
cr (D:E of 3.4:1). NSML proposes to commence operations of these
by November 2011. NSML achieved PAT of INR2.9 cr against net
sales of INR47.2 cr in FY10 (provisional). The overall gearing
ratio was high at 5.84x as on March 31, 2010.
PIONEER ELABS: CRISIL Downgrades Ratings on Various Debts to 'BB'
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank loan facilities of
Pioneer eLabs Ltd to 'BB/Negative/P4+' from 'BBB+/Stable/P3+'.
Facilities Ratings
---------- -------
INR311.4 Million Term Loan BB/Negative (Downgraded from
BBB+/ Stable)
INR100.0 Million Cash Credit BB/Negative (Downgraded from
BBB+/ Stable)
INR61.6 Million Proposed LT Bank BB/Negative (Downgraded from
Loan Facility BBB+/ Stable)
INR20.0 Million Letter of Credit P4+ (Downgraded from P3+)
Limit
INR100.0 Million Bank Guarantee P4+ (Downgraded from P3+)
Limit
The downgrade reflects Pioneer eLabs' continued weak liquidity
position, following significant build up in its debtor levels.
The company's debtor days increased to 227 days as on March 31,
2010 from 114 days as on March 31, 2008, on account of delays in
lease rental receipts from the corporate tenants as well as
realisations from its other customers. Furthermore, the debtors
exceeding six months were high, at 27 per cent of outstanding
receivables, as on March 31, 2010. The company's receivables have
also increased marginally, as on September 30, 2010. As a result,
Pioneer eLabs has been utilizing its bank limits of INR100 million
completely over the 12 months ended September, 2010.
The revised rating reflects Pioneer eLabs' increased working
capital requirements, exposure to risks related to competition
from, and dependence on, large players in information technology
(IT) and broadband services, and its small net worth and limited
scale of operations. These weaknesses are partially offset by
Pioneer's diverse revenue profile.
Outlook: Negative
CRISIL believes that Pioneer eLabs' liquidity will remain
constrained over the medium term on account of significant build
up in receivables. The rating may be downgraded in case of
continued pressure on the liquidity. Conversely, the outlook may
be revised to 'Stable' if significant improvement in Pioneer
eLabs' working capital management eases current liquidity
pressure.
About Pioneer eLabs
Established in 1988, Pioneer eLabs was one of the first internet
service providers in Andhra Pradesh. The company caters only to
domestic clients, and has, over the years, diversified into
service lines, including software development and maintenance,
hardware installation and networking, enterprise IT consulting, IT
education, voice-over-internet protocol, e-Governance, facility
management, and turnkey projects. Pioneer eLabs owns a commercial
property of 1,60,000 square feet at Hi-tech City, Hyderabad, which
it has leased out to various IT companies. The company earns
rental income from the leased property.
Pioneer eLabs' provisional profit after tax (PAT) is INR20.1
million on estimated net sales of INR466.6 million for 2009-10
(refers to financial year, April 1 to March 31), against a PAT of
INR18.4 million on net sales of INR440.6 million for 2008-09.
SANTLAL INDUSTRIES: CRISIL Assigns 'B-' Rating to INR165MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'B-/Negative' rating to Santlal Industries
Ltd's bank facilities.
Facilities Ratings
---------- -------
INR155.0 Million Cash Credit Limit B-/Negative (Assigned)
INR165.0 Million Term Loan B-/Negative (Assigned)
The rating reflects Santlal's weak financial risk profile, marked
by small net worth, high gearing, and weak debt protection
metrics, because of large debt-funded capital expenditure (capex)
and large working capital requirements. The rating also reflects
susceptibility of Santlal's margins to volatility in raw material
prices, shortage in raw materials because of uneven rainfall, and
adverse regulatory changes in the rice industry. These rating
weaknesses are partially offset by Santlal's promoters' industry
experience of, and the financial support that the company receives
from the promoters.
Outlook: Negative
CRISIL believes that Santlal will continue to face liquidity
pressures over the medium term as its cash accruals are expected
to be inadequate vis-…-vis its large debt repayment obligations
and as its working capital requirements are expected to remain
large. The ratings may be downgraded if there is a significant
weakening in Santlal's liquidity because of delays in increasing
its revenues and profitability. Conversely, the outlook may be
revised to 'Stable' if Santlal generates more-than-expected cash
accruals or makes fresh infusion of equity, thereby improving its
liquidity.
About Santlal Industries
Santlal was established by the Agarwal family of Uttar Pradesh in
2000. Since inception, the company has been engaged in milling and
sorting of non-basmati rice. In 2008-09 (refers to financial
year, April 1 to March 31), the company also started processing
basmati rice. It sells the Pusa 1121 variety of basmati rice and
P4 and Kranti varieties of non-basmati rice. The company has four
rice milling and sorting facilities in Mainpuri (Uttar Pradesh),
with a combined capacity of 24 tonnes per hour. The company has
recently installed a power plant with capacity of 3 megavolts.
Santlal reported a profit after tax (PAT) of INR3.9 million on net
sales of INR521.3 million for 2009-10, against a PAT of INR1.8
million on net sales of INR139.9 million for 2008-09.
SHIRAGUPPI SUGAR: CARE Puts 'CARE BB' Rating on INR252.74cr Loan
----------------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of Shiraguppi
Sugar Works Ltd.
Amount
Facilities (INR cr) Ratings
---------- -------- -------
Long-term Bank Facilities 252.74 'CARE BB' Assigned
Rating Rationale
The rating is constrained by the nascent stage of project
implementation of Shiraguppi Sugar Works Ltd as well as industry
risks pertaining to the sugar industry, which is cyclical (though
comfort is drawn due to proposed integrated nature of the plant)
and highly regulated. However, the rating draws strength from
experienced management and proximity of SSWL's plant to high
recovery sugarcane fields. Going forward, ability of SSWL to
commence operations of both the phases of the project as scheduled
within the envisaged cost and to enter into sugarcane supply
arrangements with farmers on time will be the key rating
sensitivities.
SSWL is a public limited company incorporated on May 29, 1995 by
Mr Kallappa Parisa Magennavar. In March 2006, Doddanavar Brothers
joined the company as directors, by acquiring 95% shareholding of
the company. SSWL is setting up a sugar unit of 7,500 Tonnes Cane
per Day (TCD), a distillery unit of 120 KLPD and a co-generation
unit of 40 MW in two phases. The total project cost is estimated
at INR401.41 cr with a D:E of 1.7:1. The entire debt has already
been tied up. Cost towards land development and civil works
incurred till August 31, 2010, was INR66.33 cr, which was funded
by term debt of INR23.00 cr and remaining from promoters'
equity/unsecured loan. SSWL proposes to commence operations of
Phase I by November 2011 and Phase II by October 2012.
SHREE BALAJI: CRISIL Assigns 'B+' Rating to INR22.8MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank
facilities of Shree Balaji Iron & Steel Co Pvt Ltd, which is part
of the BIRM group.
Facilities Ratings
---------- -------
INR50.0 Million Cash Credit Facility B+/Stable (Assigned)
INR22.8 Million Term Loan B+/Stable (Assigned)
INR17.5 Million Letter of Credit P4 (Assigned)
The ratings reflect BIRM group's small scale of operations,
moderate financial risk profile, marked by average debt protection
metrics, and expected deterioration in the gearing levels as a
result of large ongoing capital expenditure, and intense
competition the company faces in the iron and steel industry.
These rating weaknesses are partially offset by Shree Balaji's
promoters' experience in the iron and steel industry.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Shree Balaji Iron and its group
entities, British India Rolling Mills (BIRM) and Shree BD Ispat &
Alloys Pvt Ltd (Shree BD). This is because the three entities,
collectively referred to as the BIRM group, are in the same line
of business, have operational synergies, and have a common
management team.
Outlook: Stable
CRISIL believes that the BIRM group will continue to benefit from
its promoters experience in the steel industry. The outlook may
be revised to 'Positive' if the group increases its scale of
operations significantly, backed by stabilization of enhanced
capacities, while maintaining its operating margin. Conversely
the outlook may be revised to 'Negative' if the group faces time
and cost overruns in its ongoing capex, or if it's financial risk
profile deteriorates because of larger-than-expected debt-funded
capex.
About Shree Balaji
Shree Balaji Iron was incorporated in 2003 by five brothers of the
Agarwal family in Howrah (West Bengal). The company began
operations with capacity to manufacture plastic granules, but
started manufacturing steel products, such as ingots, later.
Shree Balaji Iron derives about 85 per cent of its revenues from
the steel segment and the remainder from the sale of plastic
granules. The company operates at about 50 per cent of its
capacity for steel products, and at about 100 per cent for its
plastic division.
BIRM, the flagship company of the BIRM group, was incorporated in
1978 in West Bengal as a partnership firm of all the five Agarwal
brothers to manufacture thermo-mechanically treated (TMT) bars
through an oil-fired furnace. Presently, four of the Agarwal
brothers and group company BRIM Finance Pvt Ltd hold equal stake
in BIRM; the company has capacity to manufacture 15000 tonnes per
annum of TMT bars. BIRM purchases about 95 per cent of its raw
material requirement, primarily ingots, from Shree Balaji Iron.
Shree BD was incorporated in 2008 and is setting up units to
manufacture ingots and TMT bars, with capacity of about 30,000 tpa
and 36,000 tpa respectively; the units are expected to commence
commercial production in 2011-12.
Shree Balaji Iron reported a profit after tax (PAT) of INR1.6
million on net sales of INR287.3 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR1.8
million on net sales of INR289.5 million for 2008-09.
SWAWS CREDIT: CARE Rates INR250cr Bank Loan at 'CARE BB'
--------------------------------------------------------
CARE revises rating to the bank loan facilities of Swaws Credit
Corporation India Pvt Ltd.
Amount
Facilities (INR cr) Ratings
---------- -------- -------
Bank Loan Facilities 250 CARE BB(Credit Watch)
Rating revised from
'CARE BBB-'
Rating Rationale
CARE has revised the rating assigned to bank loan facilities of
INR250 crore of SWAWS Credit Corporation India Pvt Ltd from 'CARE
BBB-' to 'CARE BB'. CARE also continues to maintain Credit Watch
on the rating. The revision in rating factors in the severe
impact of the Andhra Pradesh (AP) Ordinance2 on the collection and
recovery setup of SCCI, that in the near term resulted in a
substantial fall in its collection efficiency and over the long
term may adversely affect the asset quality. The revision also
actors in the negative impact on growth and resource raising
ability of MFIs operating in AP due to the heightened regulatory
uncertainty after the promulgation of the AP Ordinance.
CARE continues to keep the rating under credit watch and is
closely monitoring the events. As the fall in collection
efficiency may be attributed to the restructuring of operational
setup of the company, it remains to be seen how the asset quality
will evolve over a long period of time. However, on a short term
basis liquidity risk remains high and continued low collection
efficiency may warrant further rating action.
On October 30, 2010 CARE had placed the rating assigned to SCCI on
Credit Watch following implementation of AP Microfinance
Institutions (Regulation of Money Lending) Ordinance 2010 (AP
ordinance) by the AP State Government. The ordinance has changed
the operating environment for MFIs in the State and details
specific requirements relating to interest rates, collection
process, collection frequency, multiple-lending and several other
aspects that required significant changes in the operational setup
of MFIs. During this transition phase SCCI is in the process of
aligning its operations to the changing regulatory set up.
However during this transition its overall collection efficiency
during November 2010 has reduced to 27% due to the high
concentration of its portfolio in AP (79% of assets under
management as on March 31, 2010 where the collection efficiency
has reduced to 1%).
About SWAWS Credit
SWAWS Credit Corporation India Private Ltd is an NBFC registered
with RBI as a non-deposit accepting loan company. It provides
microfinance loans based on the joint liability group (JLG) model
and individual lending. Its mainly operates in urban and semi
urban areas and has specialized as an urban microfinance
institution. SCCI provides loans to individual members in the
group (JLG) with each group consisting of five members. SCCI is
currently operating in 2586 towns covering 21 districts spread
across 4 states of India including Andhra Pradesh, Orissa, Tamil
Nadu and Maharashtra. As on September, 2010, it had total
outstanding portfolio of INR95.03 crore & net worth of INR27.42
crore. The company reported total income of INR13.71 crore and net
profit of INR1.61 crore during H1FY11. Reported CAR stood at
27.58% as on September 30, 2010.
SWASTIK COPPER: CRISIL Places 'BB-' Rating on INR50MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Swastik Copper Pvt Ltd.
Facilities Ratings
---------- -------
INR50.0 Million Cash Credit BB-/Stable (Assigned)
INR19.3 Million Rupee Term Loan B-/Stable (Assigned)
INR50.0 Million Bank Guarantee P4+ (Assigned)
INR0.5 Million Letter of Credit P4+ (Assigned)
The ratings reflect SCPL's average financial risk profile and
small scale of operations in the transformers industry. The
impact of these weaknesses is mitigated by SCPL promoters'
extensive experience in the industry.
Outlook: Stable
CRISIL believes that SCPL will maintain its financial risk
profile, supported by no major debt-funded capital expenditure
(capex) plan for the near term. The outlook may be revised to
'Positive' if SCPL increases its scale of operations or improves
its profitability on a sustained basis, resulting in a better-
than-expected financial risk profile. Conversely, the outlook may
be revised to 'Negative' if the company faces delays in receipt of
payment from debtors, leading to significant weakening in
liquidity, or undertakes larger-than-expected debt-funded capex
programme, thereby weakening its capital structure.
About Swastik Copper
Set up by Mr. Sandeep Jain in 1995, SCPL manufactures distribution
and power transformers, with capacities ranging from 5 kilo
voltampere (kVA) to 10,000 kVA. The company supplies transformers
to power distribution companies in Rajasthan, Chhatisgarh,
Uttaranchal, and Haryana.
SCPL reported a profit after tax (PAT) of INR7.0 million on net
sales of INR756.0 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR5.1 million on net sales
of INR592.0 million for 2008-09.
TATA CHEMICALS: Moody's Downgrades Corp. Family Rating to 'Ba2'
---------------------------------------------------------------
Moody's Investors Service downgraded to Ba2 from Ba1 the corporate
family rating of Tata Chemicals Ltd. The outlook on the rating is
stable.
Ratings Rationale
"The performance of the group as the global economy recovers from
the 2008/09 downturn has been at the lower end of Moody's
expectations and given rising input prices, Moody's expects
financial performance to remain constrained in the medium term",
says Alan Greene, a Moody's VP/Senior Credit Officer.
Prior to the rating action, the outlook on TCL's previous Ba1
rating was negative, reflecting these challenges.
TCL is increasing capex in order to replace existing plants and to
invest in smaller fertilizer and salt plants. The company is also
contemplating an US$800 million expansion of the Babrala urea
plant, with the investment decision hinging on the availability of
cheap gas.
"TCL's capex plan will likely lead to negative free cash flow
generation over the next 2 years", Greene says, adding "the
company is reliant on continued upward momentum in the operating
environment to maintain or improve its credit metrics".
"The Ba2 rating should accommodate TCL's growth and funding
strategies, and provide sufficient flexibility to manage the
inevitable volatility in the operating environment", Greene adds.
TCL's credit profile continues to reflect strong positions in its
domestic and international markets for soda ash, competitive cost
structure, and solid operating record. It also holds a leading
position in India's regulated fertilizer sector, where moves
towards market-based pricing have reduced the predictability of
profits in the near-term.
Upward pressure on the rating is unlikely over the next 12-18
months. However, the rating could be upgraded if consistent
improvement in performance is observed across its businesses,
including consistent discipline in global soda ash markets and
continued support for the Indian fertilizer operations from the
regulatory framework. Financial metrics that Moody's would
consider for an upgrade include Adjusted Debt/EBITDA ratio of 2.5-
3.0x and Adjusted EBITDA/Interest of 4.5-5.0x on a consistent
basis.
On the other hand, the ratings could be downgraded if the outlook
for the key soda ash and fertilizer activities deteriorates such
that TCL's profitability declines. Credit measures that Moody's
would consider for a downgrade include Adjusted Debt/EBITDA
exceeding 4.0x-4.5x and EBITDA/interest coverage falling and then
remaining below 3.0-3.5x. Downward pressure on the rating could
also develop if the company experiences stress in its financial
covenants.
The last rating action with regard to TCL was taken on April 7,
2009, when Moody's lowered the rating to Ba1/ Negative from Baa3/
Negative.
Tata Chemicals Ltd, based in Mumbai, India, is the flagship
chemical company of the Tata Group. It is currently the world's
second largest producer of soda ash and a domestic leader for
branded salt, fertilizer and urea products.
TRISONS IMPEX: CARE Rates INR15cr LT Bank Loans at 'CARE BB+'
-------------------------------------------------------------
CARE assigns 'CARE BB+' and 'PR4+' ratings to the bank facilities
of Trisons Impex.
Amount
Facilities (INR cr) Ratings
---------- -------- -------
Long-term/Short-term Bank 15.00 'CARE BB+'/'PR4+'
Facilities Assigned
The rating assigned by CARE is based on the capital deployed by
the proprietor and the financial strength of Trisons as on
March 31, 2010. The rating may undergo a change in case of
withdrawal of capital or unsecured loans brought in by the
proprietor in addition to the financial performance and other
relevant factors.
Rating Rationale
The ratings derive strength from the reasonable experience of the
proprietor in the metal trading business, absence of long-term
debt, its comfortable interest coverage ratio, moderate overall
gearing level, financial support from the proprietor in the form
of regular capital infusion and its diverse customer base.
The ratings are, however, constrained by the relatively small size
of operations, the proprietorship constitution of the entity, its
low profitability margins due to the trading nature of the
business, exposure to volatility in nickel prices, working capital
intensive nature of the operations, low entry barriers in trading
business and susceptibility of the stainless steel prices to
cyclical trends in the steel industry. Trisons' ability to
achieve the envisaged growth in sales and improvement in
profitability as well as to improve its working capital management
are the key rating sensitivities.
About Trisons Impex
Formed in 2001, Trisons Impex is a proprietorship concern engaged
in trading of stainless steel sheets, plates and coil, HR/CR coil,
nickel, high nickel scrap, and other ferrous and non-ferrous
metals. Mr. Kamlesh M. Kanungo - the proprietor, manages the
overall operations of the entity and he has more than a decade of
experience in the field of metal trading.
During FY10, Trisons registered a net profit of INR1.72 crore on a
total operating income of INR126.07 crore.
=================
I N D O N E S I A
=================
FAJAR SURYA: S&P Raises Corporate Credit Rating to 'B+'
-------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term corporate credit rating on Indonesia-based pulp and
paper company PT Fajar Surya Wisesa Tbk. to 'B+' from 'B'. The
outlook is stable. At the same time, S&P raised the rating on the
senior secured notes issued by Fajar Paper Finance B.V. and
guaranteed by Fajar to 'B+' from 'B'.
"S&P raised the rating on Fajar to reflect its expectation that
the company can continue its strong operating performance over the
past year. In addition, Fajar's existing capacity will
significantly increase after a new paper machine is operational.
Fajar has also secured bank facilities in order to refinance its
existing senior secured notes due October 2011," said Standard &
Poor's credit analyst Weekhim Loy.
Fajar's operating performance started to improve in the second
half of fiscal ended December 2009, helped by a recovery in the
demand and price of paper products, which has strengthened the
company's cash flows. S&P expects price and demand for packing
paper to remain robust, reflecting healthy growth prospects for
Indonesia (Foreign currency BB/Positive/B; local currency
BB+/Positive/B; ASEAN scale axBBB+/axA-2). S&P also anticipate
that Fajar's proportion of domestic sales, which have higher
margins than exports, will remain at more than 95% of total sales.
Fajar's fifth paper machine will come on stream in the first
quarter of fiscal 2011. This will increase its capacity by about
50%. The company also plans to modify two of its existing
machines at a moderate capital expenditure, further adding to
capacity. In line with continued improvement in demand, S&P
expects the company's capacity utilization to be close to 100% in
the next few quarters.
"S&P believes Fajar has demonstrated prudence by securing US$120
million in a syndicated credit facility to refinance its existing
senior secured notes due October 2011. This substantially
mitigates refinancing risk. The credit facility has lower
interest rates than existing notes and it amortizes over five
years. Fajar should also be able to secure sufficient funds for
the modification and debottlenecking of two paper machines (PM2
and PM7) over the next two years. S&P expects Fajar to service
its debt-service obligations without difficulty," said Ms. Loy.
Fajar's financial risk profile has improved over past year. While
S&P expects the proposed capital expenditure for the PM2 and PM7
modifications to increase Fajar's debt, S&P don't believe this
will significantly weaken the company's debt-to-EBITDA ratio,
which should benefit from an improving operating environment and
better margins. In S&P's opinion, Fajar's debt-to-EBITDA ratio,
which was 2.7x at September 2010, will weaken only moderately to
about 3.0x in fiscal 2011 and reduce thereafter as its bank loan
amortizes.
S&P believes Fajar's liquidity is adequate. It can use US$100
million of its US$120 million syndicated credit facility to
refinance its senior secured notes maturing in October 2011 and
the remainder for general corporate purposes. The company also
has a credit facility of about US$40 million for general corporate
purposes.
In S&P's view, Fajar's debt maturity profile will be manageable
following the refinancing of the notes. S&P expects the company
to generate funds from operations of more than US$40 million and
that it will comply with the covenants without difficulty.
XL AXIATA: S&P Raises Corporate Credit Rating to 'BB'
-----------------------------------------------------
Standard & Poor's Ratings Services said that it had raised the
long-term corporate credit rating on Indonesian cellular service
provider PT XL Axiata Tbk. to 'BB' from 'BB-'. The outlook is
stable.
S&P raised the rating on XL to reflect the strengthening of the
company's financial metrics stemming from strong earnings,
improved profitability, and continued reduction of debt. S&P
estimate XL's gross debt-to-EBITDA ratio at 1.3x and its funds
from operations to debt at 73.6% for the 12 months ended Sept. 30,
2010. This is a marked improvement from the gross debt-to-EBITDA
ratio of 2.2x and FFO to debt of 47.1% that the company achieved
for the 12 months ended Dec. 31, 2009.
"S&P attributes the significant improvement in XL's EBITDA this
year to a strategy the company implemented in 2009 to clean up its
telecommunication network distribution and improve the quality of
its subscribers," said Standard & Poor's credit analyst Allan
Redimerio. "As a result of this strategy, XL's earnings have been
improving since the second half of 2009. The company was able to
maintain the positive momentum in 2010 by introducing bundled
service packages, where subscribers could avail free voice
minutes, SMS, or data on achieving certain voice usage."
S&P expects XL to focus its capital spending on increasing
capacity and improving network efficiency. And although S&P
expects capital spending over the next couple of years to remain
significant, it is likely to be lower than that in 2007 and 2008.
For the nine months ended Sept. 30, 2010, XL's total capital
expenditure was Indonesian rupiah 3.5 trillion. The company
forecasts capital expenditure in the range of IDR4.5 trillion-IDR5
trillion for full-year 2010. The company has been generating
positive free cash flow since the second quarter of 2009 because
of declining capital expenditure. Free positive cash flow should
enable XL to further reduce debt going forward, in S&P's opinion.
The stable outlook reflects S&P's opinion that, for the next 12
months, price competition in the Indonesian wireless market will
not intensify to the extent that it did in 2007 and 2008. This
should enable XL to maintain its current operating performance.
====================
N E W Z E A L A N D
====================
DOUBLE R: Owner Places Firm In Voluntary Liquidation
----------------------------------------------------
Nicola Boyes at Waikato Times reports that Roger Giles, a
high-profile Hamilton property developer, has put Double R
Developments into voluntary liquidation, owing unsecured creditors
NZ$4.5 million.
The Waikato Times relates that the liquidation comes after a
dispute over a NZ$140,000 debt owed to The Chef Ready Meat Company
directors Cheryl Luckie and John Brien.
Prior to Double R's voluntary liquidation, the report says, Chef
Ready Meats applied to put Double R into liquidation over a
NZ$140,000 debt linked to a faulty floor which Double R built for
them.
According to the Waikato Times, the laminate had lifted on the
floor and Ready Meats had taken Double R to mediation, and finally
arbitration, where an arbitrator found in Chef's favour and
ordered Double R to pay the debt in full.
Mr. Giles said he disputed the debt and had two options, either to
appeal the arbitrator's decision or put the company into
liquidation.
The Waikato Times relates that Chef Ready Meats general manager
Tony Fox said they had applied to have a new liquidator appointed
to Double R.
A hearing to decide on whether a new liquidator will be appointed
will be heard in the High Court at Hamilton on February 4.
Based in Hamilton, New Zealand, Double R Developments --
http://www.doublerproperties.co.nz/-- is a real estate company.
HANOVER FINANCE: Sues Allied Farmers Over Cancelled NZ$5MM Payment
------------------------------------------------------------------
The National Business Review reports that Hanover Finance Ltd had
served legal proceedings on Allied Farmers to pursue more than
NZ$5 million still outstanding as part of last December's debt for
equity swap.
The Business Review says Allied Farmers confirmed the legal action
while reiterating its position that no further payment was due.
Allied Farmers in July this year accused Hanover of breaching
the terms of their debt-for-equity swap, and refused to pay the
last NZ$5 million or any future obligations relating to the deal.
According the Business Review, the agreement was entered into on
November 17, 2009, about one month before Hanover investors
approved the transaction. The NZ$5 million related to Hanover's
costs of exiting the business includes tax and contingent
liabilities arising from pending litigation, the Business Review
notes.
The Business Review says that Allied Farmers claimed that Hanover
breached its obligations under the agreement, which included not
disposing any finance assets without prior consent of Allied
Farmers.
"These claims relate to a number of transactions where we have
been unable to ascertain any sufficient commercial rationale or
benefit to Hanover, including the release of personal guarantees
and the sale of assets at what Allied considers to be less than
market value," Allied managing director Rob Alloway said in June,
according to the Business Review.
Mr. Alloway, as cited by the Business Review, said it appeared
Hanover entered into transactions in order to generate cash
required to meet its repayment obligations to investors under the
moratorium agreement.
The Business Review notes that Hanover is expected to argue it
acted in accordance with the terms of the agreement and the
personal guarantees were worthless.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 19, 2009, Hanover Finance confirmed that Allied Farmers had
forwarded a proposal to acquire the finance assets of Hanover
Finance Limited and United Finance Limited. Chairman David Henry
said the Allied Farmers' proposal would exchange investors Hanover
Finance's secured deposits and subordinated notes, United
Finance's secured deposits, and Hanover Capital bonds for listed
shares in Allied Farmers issued at market value.
Hanover Finance said in November 2009 that it is no longer likely
to fully repay investors under a debt restructuring plan due to a
deterioration in the commercial property development market.
Hanover directors estimated the return to secured depositors is
likely to be about 70 cents on the dollar for Hanover Finance
investors while investors in subsidiary United Finance can expect
estimated returns of around 90c, according to the New Zealand
Herald.
In December 2009, Hanover investors voted in favor of the Allied
Farmers proposal.
About Hanover Finance Limited
Hanover Finance Limited -- http://www.hanover.co.nz/-- is
New Zealand's third-largest privately-owned finance company with
total assets of NZ$796 million at December 31, 2007. The company
was established in 1984 to provide finance to the rural sector
and began lending to property developers and investors in 1995.
The loan portfolio has been gradually downsized since 2006 as a
result of a more cautious approach to lending in the face of
retail funding constraints.
NEW ZEALAND ASSOCIATION: S&P Keeps 'BB/B' Issuer Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB/B' issuer
credit rating on New Zealand Association of Credit Unions and
revised the outlook on the ratings to stable from negative. At
the same time, S&P affirmed the 'BB-' rating on Pioneer Insurance
Co. Ltd, and revised the outlook on the rating to stable from
negative.
"The outlook revision reflects a moderation of S&P's concerns
about credit-union-member support for NZACU, and an improvement in
its capital adequacy position and earnings," Standard & Poor's
credit analyst Peter Sikora said.
NZACU's strategic refocus has broadly improved member support as
NZACU has adopted a more consultative approach to servicing
members. Additionally, the improvement in NZACU's capital
adequacy position has been faster than S&P expected. Furthermore,
although S&P expects earnings will remain modest, given NZACU's
member service and value focus, earnings stability is expected to
improve now that NZACU does not participate in higher risk
activities. The stable outlook also factors in S&P's expectation
that NZACU will maintain its relevant market position; S&P
anticipates this will be supported by new product development, a
banking system upgrade, and a potential moderation of some
competitive and regulatory pressures currently affecting its
central banking function for member credit unions.
NZACU's rating could be raised in the medium-to-long term if it
can maintain or strengthen its support and relevance to the credit
union sector and its members while maintaining a low credit risk
profile, stable earnings, and a capital position supportive of a
higher rating. An upgrade would also need to reflect ongoing
member support and a track record of new management's success and
no material divergence from NZACU's renewed focus of servicing the
traditional needs of its members such that its risk profile
increased.
Conversely, S&P may lower the ratings if NZACU's capital adequacy
position were to deteriorate without being remedied by member
credit unions or if its business position were marginalized by a
loss of member support stemming from management's inability to
meet the needs and expectations of members, or from any strategic
shift that increased its overall risk profile.
OTUWHERO ESTATES: In Receivership; Reports NZ$30MM In Liabilities
-----------------------------------------------------------------
Michael Berry at The Marlborough Express reports that Otuwhero
Estates Group is in receivership and has been managed by Deloitte
partners Grant Jarrold and Shari Carter, both of Christchurch,
since September 17.
The Express relates that the company went under with more than
NZ$8 million of intercompany advances spread between the four
companies and another NZ$393,000 advance paid to shareholders.
According to the Express, the company owes NZ$19.92 million to BNZ
and the loans are personally guaranteed by three directors. The
total liabilities for the group is NZ$29.93 million. The
company's assets are valued at just more than NZ$40 million.
Citing receivers' report, the Express says the group failed after
rapid expansion between 2003 and 2010 co-incided with the
oversupply of grapes, the rise in value of the New Zealand dollar,
rising costs, and excise tax increases.
The Express relates that a lower than expected 2010 harvest and
the capital needed to continue developing the estate tipped the
group over and, after reviewing the cash flow of the business, the
directors and shareholders put the group into receivership in
September.
The report said it was difficult to know how much money would be
available for creditors and it would depend how much came from the
sale of the land and wine, the Express adds.
Otuwhero Estates Group is a Marlborough-based wine company. The
group owns five blocks of land in the Awatere Valley totaling
260 hectares.
PLUM DUFF: Wool Services for Sale Following Administration
----------------------------------------------------------
Business Day reports that Wool Services International is on the
market after its main shareholder, Allan Hubbard's company Plum
Duff, was placed in receivership.
As reported in the Troubled Company Reporter-Asia Pacific on
December 20, 2010, Maurice Noone and Malcolm Hollis of
PricewaterhouseCoopers were appointed joint receivers to Plum Duff
Limited and Woolpak Holdings Limited by the receivers of South
Canterbury Finance Limited. The companies' principal assets
comprise of 63.8% interest shares in NZ Wool Services
International Limited. Maurice Noone said, "WSI is not affected
by the appointment of receivers to the companies."
According to Business Day, Mr. Noone said that the receivers would
likely seek expressions of interest to buy the shareholding from
the receivers early in the New Year.
Wool Services, Business Day notes, said it had approaches from
about six parties interested in Mr. Hubbard's stake.
Wool Services International is Australia's largest wool exporter.
=================
S I N G A P O R E
=================
888 GROUP: Court to Hear Wind-Up Petition on December 31
--------------------------------------------------------
A petition to wind up the operations of 888 Group Holding Private
Limited will be heard before the High Court of Singapore on
December 31, 2010, at 10:00 a.m.
G.B. Kuari SDN BHD filed the petition against the company on
December 9, 2010.
The Petitioner's solicitors are:
Khattarwong
No. 80 Raffles Place
#25-01 UOB Plaza 1
Singapore 048624
AMARU INC: Restates 2009 10K; Posts $33.7MM in Restated Net Loss
----------------------------------------------------------------
Amaru, Inc., filed on December 15, 2010, Amendment No. 3 to its
Form 10-K for the fiscal year ended December 31, 2009.
On May 28, 2010, the Company announced that its previously issued
financial statements for the year ended December 31, 2009,
included in the Company's Form 10-K, which was filed on March 31,
2010, should no longer be relied upon.
Management began a review of its reporting policies with respect
to its film library and concluded that its film library should
have been impaired at December 31, 2009, based upon a lack of
historical revenue from which to calculate a fair value in
accordance with ASC 926, "Entertainment - Films." This Amendment
on Form 10-K/A includes the changes and restatement of the
December 31, 2009 year ended financial statements.
As a result, the Company's film library was written down an
additional $8,547,662 and recorded on the income statement as an
impairment loss on film library. This resulted in an increase in
net loss and accumulated deficit for the period ended December 31,
2009, in the amount of $8,547,662.
The Company reported a restated loss of $33.7 million on $22,016
of revenue for 2009, compared with a net loss of $17.2 million on
$203,066 for 2008.
The Company's restated balance sheet at December 31, 2010, listed
$4.23 million in assets, $3.40 million in liabilities, and
stockholders' equity of $835,348.
Mendoza Berger & Company, LLP, in Irvine, California, expressed
substantial doubt about Amaru, Inc.'s ability to continue as a
going concern, following the Company's 2009 results. The
independent auditors noted of the Company's accumulated losses
from operations at December 31, 2009, and lack of significant
revenue.
A full-text copy of the Form 10-K/A is available for free at:
http://researcharchives.com/t/s?7117
About Amaru Inc.
Singapore-based Amaru Inc. provides entertainment-on-demand and e-
commerce channels on Broadband, and 3G devices. The Company
delivers both wire and wireless solutions, streaming via
computers, TV sets, PDAs and 3G hand phones. The Company launches
e-commerce channels (portals) that provide on-line shopping but
with a difference, merging two leisure activities of shopping and
entertainment.
ARMF II: Creditors' Proofs of Debt Due January 17
-------------------------------------------------
Creditors of ARMF II Kashiwa Holding (S) Pte Ltd, which is in
members' voluntary liquidation, are required to file their proofs
of debt by January 17, 2011, to be included in the company's
dividend distribution.
The company's liquidator is:
Lau Chin Huat
c/o 6 Shenton Way #32-00
DBS Building Tower Two
Singapore 068809
HSBC FUND: Creditors' Proofs of Debt Due January 17
---------------------------------------------------
Creditors of HSBC Fund Services (Singapore) Ltd, which is in
members' voluntary liquidation, are required to file their proofs
of debt by January 17, 2011, to be included in the company's
dividend distribution.
The company's liquidators are:
Andrew Grimmett
Lim Loo Khoon
6 Shenton Way #32-00
DBS Building Tower Two
Singapore 068809
HSBC SECURITIES: Creditors' Proofs of Debt Due January 17
---------------------------------------------------------
Creditors of HSBC Securities Services (Transfer Agency) Pte Ltd,
which is in members' voluntary liquidation, are required to file
their proofs of debt by January 17, 2011, to be included in the
company's dividend distribution.
The company's liquidators are:
Andrew Grimmett
Lim Loo Khoon
6 Shenton Way #32-00
DBS Building Tower Two
Singapore 068809
MULTI-OIL ASIA: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on December 10, 2010,
to wind up the operations of Multi-Oil Asia Trading Pte Ltd
formerly known as CLK Asia Shipping Company Pte Ltd.
Cs-Eurasia Leasing (Sea) Pte Ltd filed the petition against the
company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road, #05-11/#06-11
Singapore 069118
NACO CONCEPT: Members' Final Meeting Set for December 27
--------------------------------------------------------
Creditors of Naco Concept Pte Ltd will hold their annual meeting
on December 27, 2010, at 2:00 p.m., at 400 Orchard Road #08-02
Orchard Towers, in Singapore 238875.
At the meeting, Goh Boon Kok, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
ONE GEORGE: Fitch Upgrades Ratings on Two Senior Classes
--------------------------------------------------------
Fitch Ratings has upgraded two senior classes of One George CDO
Pte. Ltd. and affirmed the remaining four rated classes. The
Outlooks on classes A-2A and A-2B have been revised to Positive
from Stable. The Outlooks on classes A-3 and B remain Stable,
while the Outlooks on classes C and D are Negative. This
transaction is a cash securitization of primarily investment grade
bonds issued by companies mainly in Singapore.
The rating actions are:
-- SGD117m class A-2A senior secured fixed rate notes upgraded
to 'A+sf' from 'Asf'; Outlook revised to Positive from
Stable; Loss Severity (LS) Rating 'LS1',
-- SGD17.5m class A-2B senior secured floating rate notes
upgraded to 'A+sf' from 'Asf'; Outlook revised to Positive
from Stable; LS Rating 'LS1',
-- SGD5m class A-3 senior secured floating rate notes affirmed
at 'A-sf'; Outlook Stable; LS Rating revised to 'LS1' from
'LS3',
-- SGD5m class B senior secured deferrable floating-rate notes
affirmed at 'A-sf'; Outlook Stable; LS Rating revised to
'LS1' from 'LS3',
-- SGD10m class C senior secured deferrable floating-rate notes
affirmed at 'BBBsf'; Outlook Negative; LS Rating revised to
'LS1' from 'LS3', and
-- SGD5m class D senior secured deferrable floating-rate notes
affirmed at 'BBsf'; Outlook Negative; LS Rating revised to
'LS1' from 'LS3'.
The upgrades of classes A-2A and A-2B reflect the continued
deleveraging of the transaction which has notably increased credit
enhancement levels following the paying-off of classes A-1A and
A-1B in May 2010. The Positive Outlooks on these classes reflect
the adequate credit enhancement surpluses at the current rating
level, as well as the expectation that the transaction is likely
to further deleverage (at least in the near term), as advised by
the transaction's portfolio manager due to the lack of suitable
investment opportunities in the market.
The rating affirmations of classes A-3, B, C and D follow the
stable performance of the transaction. The Stable Outlooks on
classes A-3 and B reflect their ability to withstand an adequate
number of obligors default at their respective stress scenario and
the generally good quality of the portfolio, with a weighted
average rating at 'BBB+/BBB' in November 2010.
The Outlooks of classes C and D remain Negative since both classes
are vulnerable to the defaults of two large obligors. The
transaction presents high obligor concentration risk as the
portfolio balance amortized to 36% of the balance at closing in
December 2007, and the number of obligors fell to 17 as of
November 2010. The top three obligors represented 32% of the
portfolio balance in November 2010.
The bond portfolio balance has further amortized to SGD179.3m in
November 2010 (November 2009: SGD306.5m) as the underlying bonds
matured, or were sold. Proceeds from these bonds were used to
amortize the classes on a sequential basis. As of November 2010,
classes A-1A and A-1B were paid in full while classes A-2A and A-
2B balances were at 58% of their respective balances at closing.
Until November 2014, the transaction will still be in the
replenishment period. However, the portfolio manager, Lion Global
Investors Limited, expects the transaction to continue to
deleverage due to the lack of suitable investment opportunities.
Class D's par value ratio has further improved to 169% in November
2010 from 112% in November 2009 due to the deleveraging of the
transaction.
The agency notes that as the transaction deleverages and classes
A-2A and A-2B continue to amortize, the remaining liabilities,
which are paying floating-rates, are likely to be supported by a
majority of fixed-rate paying assets in the portfolio. Fitch has
factored in this interest rate mismatch in its analysis.
The portfolio continues to show geographical concentration in
Singapore (66%), with the three largest industries in the
portfolio being Transportation (36%), Real Estate (27%) and
Banking & Finance (20%) at November 2010.
PACIFIC HOLDINGS: Creditors' Proofs of Debt Due January 15
----------------------------------------------------------
Creditors of Pacific Holdings Ltd, which is in members' voluntary
liquidation, are required to file their proofs of debt by Jan. 15,
2011, to be included in the company's dividend distribution.
The company's liquidators are:
Mohamed Ali Bin Kadir
Nancy Julia Zehnder
c/o IP Consultants Pte Ltd
60 Robinson Road
#11-01 Bank of East Asia Building
Singapore 068892
STEGLITZ PTE: Creditors' Proofs of Debt Due January 17
------------------------------------------------------
Creditors of Steglitz Pte Ltd, which is in members' voluntary
liquidation, are required to file their proofs of debt by Jan. 17,
2011, to be included in the company's dividend distribution.
The company's liquidator is:
Chee Yoh Chuang
Abuthahir Abdul Gafoor
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
SUM KEONG: Creditors' Proofs of Debt Due January 18
---------------------------------------------------
Creditors of Sum Keong Realty Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by January 18, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Yiong Kok Kong
c/o 19 Keppel Road
#02-01 Jit Poh Building
Singapore 089058
SURROUNDING ENTERPRISES: Court to Hear Wind-Up Petition on Dec. 31
------------------------------------------------------------------
A petition to wind up the operations of Surrounding Enterprises
Pte Ltd will be heard before the High Court of Singapore on
December 31, 2010, at 10:00 a.m.
Yong Yoke Keong (Malaysia) filed the petition against the company
on December 6, 2010.
The Petitioner's solicitors are:
Dominion LLC
171 Chin Swee Road
#09-08 San Centre
Singapore 169877
WYNTON GROUP: Creditors' Proofs of Debt Due January 17
------------------------------------------------------
Creditors of The Wynton Group (MGMT) Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by January 17, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
The Kwang Hwee
c/o 1 Commonwealth Lane
#07-32 One Commonwealth
Singapore 149544
===============
X X X X X X X X
===============
* S&P Puts Ratings on Nine Asia-Pacific CDOs on Positive Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services placed the ratings on nine Asia
Pacific (excluding Japan) collateralized debt obligation tranches
on CreditWatch with positive implications. Additionally, S&P
affirmed the ratings on 26 tranches of CDO or collateralized loan
obligation tranches.
To assess the creditworthiness of each class, S&P reviewed the
credit quality of the securitized assets using synthetic rated
overcollateralization scores and results from supplemental tests.
These results measure the degree by which the credit enhancement
of a tranche exceeds the stressed loss rate assumed for a given
rating scenario.
Tranches placed on CreditWatch positive had SROC scores that are
greater than 100% at the current rating level and at a higher
rating level with sufficient cushion (based on the maximum
scenario loss rate, largest obligor test, and largest industry
test). SROC scores rising above 100% reflect an improvement in
the credit quality of the underlying portfolio.
The affirmations reflect that the tranches have SROC scores that
were at or above 100% at the current rating levels, with
insufficient cushion in SROC to warrant an upgrade to the next
higher rating level. Script Securitisation (Southern Cross)
Series 2006-1 Class B (a) and B (b) notes were affirmed,
reflecting S&P's view of the various recovery scenarios on the
defaulted name in the portfolio. As more information becomes
available on actual recoveries, S&P will access the credit quality
of the portfolio and take necessary actions.
Ratings On Creditwatch
Rating To Rating From
--------- -----------
Athenee CDO PLC Series 2007-2 BB- (sf)/Watch Pos BB- (sf)
Athenee CDO PLC Series 2007-3 B+ (sf)/Watch Pos B+ (sf)
Athenee CDO PLC Series 2007-5 B (sf)/Watch Pos B (sf)
Athenee CDO PLC Series 2007-9 BB- (sf)/Watch Pos BB- (sf)
Athenee CDO PLC Series 2007-8 B+ (sf)/Watch Pos B+ (sf)
Athenee CDO PLC Series 2007-10 BB+ (sf)/Watch Pos BB+ (sf)
Athenee CDO PLC Series 2007-12 B (sf)/Watch Pos B (sf)
Athenee CDO PLC Series 2007-15 BB- (sf)/Watch Pos BB- (sf)
ARLO IX Ltd. Pascal Series 2007 B (sf)/Watch Pos B (sf)
Ratings Affirmed
Issuer Rating To
------ ---------
Alpha Financial Products Ltd. Series 1 CCCp (sf) NRi
ARLO Ltd. Series 11 BB+p (sf) NRi
Athenee CDO PLC Series 2007-4 B+ (sf)
Athenee CDO PLC Series 2007-6 B+ (sf)
Athenee CDO PLC Series 2007-14 B+ (sf)
Beech Trust Series 1 A+ (sf)
Beech Trust Series 2 A- (sf)
Castle Finance I Ltd. Series 1 BB- (sf)
Castle Finance I Ltd. Series 2 CCC+ (sf)
Corsair (Jersey) No. 2 Ltd. Series 68 CCC- (sf)
Echo Funding Pty Ltd. Series 18 CCC- (sf)
Echo Funding Pty Ltd. Series 21 CCC- (sf)
Morgan Stanley ACES SPC Series 2007-9 B-p (sf)
Morgan Stanley ACES SPC Series 2007-38 CCC- (sf)
Morgan Stanley ACES SPC Series 2008-5 A+ (sf)
Obelisk Trust 2007-1-Sonoma Valley
Class A AA (sf)
Obelisk Trust 2007-1-Sonoma Valley
Class B BBB (sf)
Script Securitisation Pty Ltd.
Southern Cross 2006-1 Class A-1 AA+ (sf)
Script Securitisation Pty Ltd.
Southern Cross 2006-1 Class A2-a A+ (sf)
Script Securitisation Pty Ltd.
Southern Cross 2006-1 Class B-a A- (sf)
Script Securitisation Pty Ltd.
Southern Cross 2006-1 Class C BB+ (sf)
Script Securitisation Pty Ltd.
Southern Cross 2006-1 Class D BB+ (sf)
Script Securitisation Pty Ltd.
Southern Cross 2006-1 Class A2-b A+ (sf)
Script Securitisation Pty Ltd.
Southern Cross 2006-1 Class B-b A- (sf)
Xelo PLC Series 2006 Tranche A CCC- (sf)
Zenesis SPC Series 2006-1 A+ (sf)
Notes:
1. Where the final price on defaulted reference names in CDO
portfolios is not known, S&P's analysis takes into
consideration the auction results for these names from the
International Swaps and Derivatives Association, Inc.
2. In accordance with the criteria for rating CDO transactions,
certain factors such as credit stability and rating
sensitivity to modeling parameters may be considered in
assigning ratings to CDO tranches, in addition to the
supplemental tests, the Monte Carlo default simulation
results, and the associated cash flow modeling. Such risks in
transactions may be assessed on a case-by-case basis and the
ratings may be qualitatively adjusted to a rating level
different than that indicated by the various quantitative
results. The tranches' final ratings reflect the result of
any such qualitative adjustments.
The Global SROC Report with the SROC analysis as at end-November
2010 will be published shortly. In the week following the
publication of the report, a full review of the affected tranches
of Asia-Pacific synthetic CDOs will be performed and appropriate
rating actions, if any, will be taken. The Global SROC Report
provides SROC and other performance metrics on more than 3,000
individual CDO tranches.
* BOND PRICING: For the Week December 13 to December 17, 2010
-------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
ADVANCED ENERGY 9.50 01/04/2015 AUD 1.07
AINSWORTH GAME 8.00 12/31/2011 AUD 1.11
AMITY OIL LTD 10.00 10/31/2013 AUD 1.90
AMP GROUP FINANC 9.80 04/01/2019 NZD 0.98
AUST & NZ BANK 2.00 04/15/2018 AUD 73.87
BECTON PROP GR 9.50 06/30/2010 AUD 0.28
CBD ENERGY LTD 12.50 01/29/2011 AUD 0.10
ENVESTRA LTD 3.04 08/20/2025 AUD 74.67
EXPORT FIN & INS 0.50 12/16/2019 AUD 58.35
EXPORT FIN & INS 0.50 06/15/2020 AUD 56.29
EXPORT FIN & INS 0.50 06/15/2020 AUD 58.00
FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.45
HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.79
MINERALS CORP 10.50 09/30/2011 AUD 0.25
NEW S WALES TREA 1.00 09/02/2019 AUD 63.46
NEW S WALES TREA 0.50 09/14/2022 AUD 51.51
NEW S WALES TREA 0.50 10/07/2022 AUD 51.31
NEW S WALES TREA 0.50 10/28/2022 AUD 50.57
NEW S WALES TREA 0.50 11/18/2022 AUD 50.42
NEW S WALES TREA 0.50 12/16/2022 AUD 50.68
NEXUS AUSTRALIA 3.60 08/31/2017 AUD 70.52
NEXUS AUSTRALIA 3.60 08/31/2019 AUD 64.41
RESOLUTE MINING 12.00 12/31/2012 AUD 1.22
SUN RESOURCES NL 12.00 06/30/2011 AUD 0.45
TREAS CORP VICT 0.50 08/25/2022 AUD 52.15
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 61.65
CHINA THREE GORG 3.45 04/08/2014 CNY 70.02
SHANG CHENGTOU 8.00 07/27/2020 CNY 60.00
HONG KONG
---------
RESPARCS FUNDING 8.00 12/29/2049 USD 33.87
INDIA
-----
L&T FINANCE LTD 8.40 03/08/2013 INR 8.15
PUNJAB INFRA DB 0.40 10/15/2024 INR 25.75
PUNJAB INFRA DB 0.40 10/15/2025 INR 23.21
PUNJAB INFRA DB 0.40 10/15/2026 INR 21.17
PUNJAB INFRA DB 0.40 10/15/2027 INR 19.38
PUNJAB INFRA DB 0.40 10/15/2028 INR 17.76
PUNJAB INFRA DB 0.40 10/15/2029 INR 16.31
PUNJAB INFRA DB 0.40 10/15/2030 INR 15.01
PUNJAB INFRA DB 0.40 10/15/2031 INR 13.84
PUNJAB INFRA DB 0.40 10/15/2032 INR 12.79
PUNJAB INFRA DB 0.40 10/15/2033 INR 11.85
PYRAMID SAIMIRA 1.75 07/04/2012 INR 12.37
JAPAN
-----
AIFUL CORP 6.00 12/12/2011 USD 69.95
AIFUL CORP 1.20 01/26/2012 JPY 74.91
AIFUL CORP 1.99 03/23/2012 JPY 71.91
AIFUL CORP 1.22 04/20/2012 JPY 68.90
AIFUL CORP 1.63 11/22/2012 JPY 57.91
AIFUL CORP 1.74 05/28/2013 JPY 51.91
AIFUL CORP 1.99 10/19/2015 JPY 41.92
CSK CORPORATION 0.25 09/30/2013 JPY 71.57
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 59.37
JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 58.18
SHINSEI BANK 5.62 12/29/2049 GBP 73.13
TAKEFUJI CORP 9.20 04/15/2011 USD 10.00
MALAYSIA
--------
ADVANCED SYNERY 2.00 01/26/2018 MYR 0.09
ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.30
CRESENDO CORP B 3.75 01/11/2016 MYR 1.11
DUTALAND BHD 6.00 04/11/2013 MYR 0.35
DUTALAND BHD 6.00 04/11/2013 MYR 0.75
EASTERN & ORIENT 8.00 07/25/2011 MYR 1.14
EASTERN & ORIENT 8.00 11/16/2019 MYR 1.18
KUMPULAN JETSON 5.00 11/27/2012 MYR 0.82
LION DIVERSIFIED 4.00 12/17/2013 MYR 1.63
MITHRIL BHD 3.00 04/05/2012 MYR 0.61
NAM FATT CORP 2.00 06/24/2011 MYR 0.05
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.52
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.25
OLYMPIA INDUSTRI 2.80 04/11/2013 MYR 0.24
PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.54
REDTONE INTL 2.75 03/04/2020 MYR 0.07
RUBBEREX CORP 4.00 08/14/2012 MYR 0.95
SCOMI ENGINEERING 4.00 03/19/2013 MYR 0.98
SCOMI GROUP 4.00 12/14/2012 MYR 0.08
TATT GIAP 2.00 06/06/2015 MYR 0.70
TRADEWINDS CORP 2.00 02/08/2012 MYR 0.91
TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.10
TRC SYNERGY 5.00 01/20/2012 MYR 1.63
WAH SEONG CORP 3.00 05/21/2012 MYR 3.00
WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.27
YTL CEMENT BHD 5.00 11/10/2015 MYR 2.25
NEW ZEALAND
-----------
ALLIED FARMERS 9.60 11/15/2011 NZD 42.20
ALLIED NATIONWIDE 11.52 12/29/2049 NZD 28.00
CONTACT ENERGY 8.00 05/15/2014 NZD 1.05
DORCHESTER PACIF 5.00 06/30/2013 NZD 63.33
FLETCHER BUI 8.50 03/15/2015 NZD 7.75
FLETCHER BUI 7.55 03/15/2011 NZD 7.60
GMT BOND ISSUER 7.75 06/19/2015 NZD 0.06
INFRATIL LTD 8.50 09/15/2013 NZD 9.00
INFRATIL LTD 8.50 11/15/2015 NZD 9.20
INFRATIL LTD 10.18 12/29/2049 NZD 61.00
KIWI INCOME PROP 8.95 12/20/2014 NZD 1.30
MARAC FINANCE 10.50 07/15/2013 NZD 1.02
SKY NETWORK TV 4.01 10/16/2016 NZD 5.89
SOUTH CANTERBURY 10.50 06/15/2011 NZD 1.00
SOUTH CANTERBURY 10.43 12/15/2012 NZD 0.74
ST LAURENCE PROP 9.25 07/15/2010 NZD 47.54
TOWER CAPITAL 8.50 04/15/2014 NZD 1.02
TRUSTPOWER LTD 8.50 09/15/2012 NZD 7.00
TRUSTPOWER LTD 8.50 03/15/2014 NZD 7.20
TRUSTPOWER LTD 7.60 12/15/2014 NZD 1.04
TRUSTPOWER LTD 8.60 12/15/2016 NZD 1.05
UNI OF CANTERBUR 7.25 12/15/2019 NZD 1.00
VECTOR LTD 8.00 06/15/2012 NZD 7.25
VECTOR LTD 8.00 10/15/2014 NZD 6.50
SINGAPORE
---------
DAVOMAS INTL 5.50 12/08/2014 USD 68.00
EQUINOX OFFSHORE 20.00 10/13/2011 USD 71.09
NEXUS 1 PTE LTD 10.50 03/07/2012 USD 0.94
SENGKANG MALL 4.88 11/20/2012 SGD 0.04
UNITED ENG LTD 1.00 03/03/2014 SGD 1.90
WBL CORPORATION 2.50 06/10/2014 SGD 1.90
SOUTH KOREA
-----------
COSMOS PLC CO 3.00 05/30/2011 KRW 13.43
DAEWOO MTR SALES 6.55 03/17/2011 KRW 64.30
HOPE KOD 1ST 8.50 06/30/2012 KRW 30.64
HOPE KOD 2ND 15.00 08/21/2012 KRW 34.81
HOPE KOD 3RD 15.00 09/30/2012 KRW 33.37
HOPE KOD 4TH 15.00 12/29/2012 KRW 33.50
HOPE KOD 6TH 15.00 03/10/2013 KRW 34.86
IBK 16TH ABS 25.00 09/24/2012 KRW 65.94
IBK 17TH ABS 25.00 12/29/2012 KRW 58.87
KB 10TH SEC SPC 23.00 01/03/2011 KRW 64.97
KB 10TH SEC SPC 23.00 01/03/2011 KRW 70.68
KB 11TH SEC SPC 20.00 07/03/2011 KRW 64.02
KB 11TH SEC SPC 20.00 07/03/2011 KRW 68.80
KB 12TH ABS 25.00 01/21/2012 KRW 64.46
KB 13TH ABS 25.00 07/02/2012 KRW 52.79
KB 14TH ABS 23.00 01/04/2013 KRW 58.67
KDB 6TH ABS 20.00 12/02/2019 KRW 68.09
KEB 17TH ABS 20.00 12/28/2011 KRW 59.29
NACF-14 ABS SPS 25.00 01/15/2011 KRW 67.43
NACF-15 ABS SPS 25.00 03/18/2011 KRW 64.01
NACF-16 ABS SPS 15.00 01/03/2011 KRW 42.90
NACF-16 ABS SPS 25.00 02/03/2011 KRW 37.39
ONE KDB 1ST ABS 7.60 06/13/2011 KRW 35.64
OSAN MYTOWN 1ST 5.64 04/16/2012 KRW 69.79
OSAN MYTOWN 2ND 5.64 04/16/2012 KRW 69.58
SAM HO INTL 6.32 03/28/2011 KRW 72.49
SHINSHAN 2ND SEC 25.00 06/11/2011 KRW 29.79
SINBO 1ST ABS 15.00 07/22/2013 KRW 31.02
SINBO 2ND ABS 15.00 08/26/2013 KRW 33.55
SINBO 3RD ABS 15.00 09/30/2013 KRW 31.80
SINBO 4TH ABS 15.00 12/16/2013 KRW 29.98
SINBO 5TH ABS 15.00 02/23/2014 KRW 28.97
SINBO CO 1ST ABS 15.00 03/15/2014 KRW 30.28
SINGOK ABS 7.50 06/18/2011 KRW 72.70
SINGOK NS ABS 7.50 06/27/2011 KRW 52.69
YOUNGNAM SAVINGS 8.50 12/18/2014 KRW 49.00
THAILAND
--------
THAILAND GOVT 0.75 01/04/2022 THB 70.75
VIETNAM
--------
VIETNAM MACHINE 9.20 06/06/2017 VND 74.61
VIETNAM SHIPBUIL 9.00 04/13/2017 VND 61.66
VIETNAM-PAR 4.00 03/12/2028 USD 74.00
*********
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, Ivy B. Magdadaro, 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 ***