/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/101230.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 Thursday, December 30, 2010, Vol. 13, No. 257 Headlines A U S T R A L I A CEDENCO JV: Seeks U.S. Recognition of Liquidation Proceedings CEDENCO JV: Chapter 15 Case Summary CENTRO PROPERTIES: Blackstone Submits Bid For Centro Assets H O N G K O N G HIDDEN DRAGON: Members' and Creditors Meetings Set for January 24 KATAHDIN LIMITED: Members' Final Meeting Set for January 26 SWIRE AVIATION: Placed Under Voluntary Wind-Up Proceedings THUNDERBIRD ELECTRONICS: Creditors' Proofs of Debt Due January 25 TOPS FOOD: Creditors' Proofs of Debt Due January 25 VIGO HOLDINGS: Creditors' Proofs of Debt Due January 25 WELLON SHIPPING: Creditors' Meeting Set for January 25 I N D I A AIR INDIA: Seeks INR2,000cr Equity Infusion in 2011-12 Budget ARVIND KUMAR: CRISIL Places 'BB-' Rating on INR13-Mil. Term Loan GANGAR OPTICIANS: ICRA Upgrades Rating on INR14.7cr Debt to 'LBB-' GUNTUR SPINNING: ICRA Reaffirms 'LBB' Rating on INR15.91cr Loan KANADE ANAND: CARE Assigns 'CARE BB+' Rating to INR42.72cr LT Loan KANWARJI CONSTRUCTION: ICRA Assigns 'LBB+' Rating to INR26cr Loan NOVOPAN INDUSTRIES: CRISIL Reaffirms 'D' Rating on INR160MM Loan ORIENTAL ENGINEERING: CRISIL Assigns 'BB+' Rating to INR20MM Loan P.K. OVERSEAS: CRISIL Reaffirms 'B+' Rating on INR15MM Rupee Loan RAMA PHOSPHATES: CRISIL Assigns 'BB-' Rating to INR65.7MM LT Loan RAJ KUMAR: CRISIL Assigns 'BB+' Rating to INR76.3MM LT Bank Loan SANGRUR AUTOS: CRISIL Reaffirms 'BB' Rating on INR90MM Cash Credit SATYAM COMPUTER: Tax Department Orders Audit of Satyam Accounts STRAWBERRY STUDIO: CRISIL Reaffirms 'BB+' Rating on INR13.5MM Loan TIPS INDUSTRIES: CRISIL Assigns 'BB' Rating to INR60MM Cash Credit VISHAL FABRICS: CARE Assigns 'CARE BB+' Rating to INR29.24cr Loan WINDSOR GARDENS: CRISIL Assigns 'BB+' Rating to INR95-Mil. LT Loan J A P A N JAPAN AIRLINES: To Terminate 170 Pilots and Flight Crews SILVER SEIKO: Defaults on JPY1 Billion Promissory Notes K O R E A DAEWOO EN'G: KDB Acquires 89.9 Million New Shares in Daewoo P H I L I P P I N E S BANCO FILIPINO: Court Orders Implementation of Business Plan T H A I L A N D TT&T PCL: Thai Bankruptcy Court Approves Rehabilitation Plan V I E T N A M VIETNAM SHIPBUILDING: Gets Government Loans to Pay Salaries - - - - - ================= A U S T R A L I A ================= CEDENCO JV: Seeks U.S. Recognition of Liquidation Proceedings ------------------------------------------------------------- The liquidators of Cedenco JV Australia PTY Ltd., also known as Cedenco Australia, filed a Chapter 15 petition in San Francisco California for the company (Bankr. N.D. Calif. Case No. 10-35002) and two affiliates on Dec. 23, 2010. Cedenco was a food ingredient manager and food processor, and had its operations in and around Echuca, Victoria, Australia. SK Foods Australia Pty Ltd., which also sought Chapter 15 relief (Bankr. N.D. Calif. Case No. 10-35004), owns all 4,700,000 shares of Cedenco. The liquidators also filed a Chapter 15 petition for another affiliate, SS Farms Australia Pty Ltd. (Case No. 10- 35003). The Chapter 15 petitions were filed by Ian Russell Lock and John Sheahan, liquidators and foreign representatives of the Debtor. Bankruptcy Filings On December 17, 2002, the Australian and New Zealand Banking Group Ltd ("ANZ Bank") registered a fixed and floating charge (or lien) over the assets of the Debtor. The loans made to the Debtor by ANZ Bank were part of a larger lending relationship between ANZ Bank and all entities in the Cedenco group of companies in Australia and New Zealand, including the Debtor, SK Foods Australia, SS Farms Australia Pty Ltd., and two New Zealand companies, Cedenco Foods Ltd. and Cedenco Ohakune Ltd. On November 9, 2009, Cedenco Foods and Cedenco Ohakune were placed into receivership by ANZ Bank under New Zealand law. The Debtor, SK Foods Australia, and SS Farms Australia were also placed into receivership under Australian law. According to Mr. Sheahan, in the United States, there have been difficulties involving the Cedenco Group's U.S. affiliates. SK Foods LP, a U.S. affiliate of the Cedenco Group, is the subject of Chapter 11 proceeding, and that there are criminal proceedings against one of the principals of SK Foods LP, Scott Salyer, pending, respectively, in United States Bankruptcy and District Courts of the Eastern District of California. On June 23, 2010, Kagome Co Ltd (a Japanese entity) acquired the assets and operations of the Debtor, as well as Debtors SK Foods Australia and SS Farms Australia, for a combined price of approximately AU $91M, substantially greater than the amount owed to ANZ Bank by the Australian members of the Cedenco Group. Under Australian law, the sales proceeds are collected by the receivers for ANZ Bank, and are to be released to the Liquidators after discharging the debt due ANZ Bank. The full sum of the proceeds have not yet been released. Assets Dispute Messrs. Lock and Sheahan, both of Sheahan Lock Partners, were appointed on August 11, 2010, as joint and several liquidators of the Debtor pursuant to section 439C(c) and 446A of the Corporations Act (Cth) 2001, an Act of the Federal Parliament of Australia. The DMAW Lawyers serves as the liquidators' Australian solicitors. The liquidators are to distribute the Debtor's remaining funds to its owners. However, according to Mr. Sheahan, this distribution will not take place until all matters relating to the liquidation have been dealt with, including pursuing claims against third parties, and a determination of the conflicting claims to ownership of the companies in the Cedenco Group. "Specifically relating to the latter issue, the corporate parent of the Debtor, SK Foods Australia, allegedly has 101 issued shares which, according to ASIC's records, are held by Frederick Scott Salyer (1 shares), Scott Salyer (45 shares), and SK PM Corporation, a U.S.-based company (55 shares). Further information provided to us suggests, however, that these shares are held by the Scott Salyer Revocable Trust (45.55%) and SK PM Corporation (54.45%). There is also the allegation that the shares of SK Foods Australia are owned by an offshore trust, on behalf of other members of the Salyer family. Finally, the Chapter 11 Trustee of SK Foods LP also claims to have a legal or equitable entitlement to substantially all of the shares in SK Foods Australia. This matter will have to be resolved through negotiation or through appropriate proceedings." Australian Court as Main Proceeding The liquidators ask the U.S. Bankruptcy Court to recognize the Debtor's Australian liquidation proceeding as a "foreign main proceeding" as that term is defined pursuant to Section 1502(4) of the Bankruptcy Code. "Here, relief under chapter 15 of the Bankruptcy Code is necessary to obtain documents and information in the United States from individuals and entities in the San Francisco area and otherwise in this judicial district to carry out our responsibilities as Liquidators, and to also ensure, among other things, that no creditor or other party takes any action in the United States to obtain an unlawful advantage or otherwise in a manner detrimental to the policies of Australian law that inform the Liquidation, including permitting the Australian procedure for dealing with proofs of debt and affirmative claims to follow its intended course, which includes rights to appeal to the Australian Courts," Mr. Sheanan said. The foreign representatives are represented in the Chapter 15 case by: Louis J. Cisz, III, Esq. Nixon Peabody LLP One Embarcadero Center, 18th Fl San Francisco, CA 94111-3600 Tel: (415) 984-8320 Fax: (866) 246-2754 E-mail: lcisz@nixonpeabody.com CEDENCO JV: Chapter 15 Case Summary ----------------------------------- Chapter 15 Petitioner: Ian Russell Lock and John Sheahan, liquidators and foreign representatives. Chapter 15 Debtor: Cedenco JV Australia PTY LTD (in Liquidation) aka Cedenco Australia Chapter 15 Case No.: 10-35002 Debtor-affiliates subject to Chapter 15 petitions: Entity Case No. ------ -------- SK Foods Australia Pty Ltd. 10-35004 SS Farms Australia Pty Ltd. 10-35003 Type of Business: Cedenco JV is a food company that supplies a various range of agricultural food products to domestic and international customers. SS Farms is a company based in Echuca, Australia, that produces and supplies tomatoes. Chapter 15 Petition Date: December 23, 2010 Court: U.S. Bankruptcy Court Northern District of California (San Francisco) Judge: Dennis Montali Foreign Representatives' Counsel: Louis J. Cisz, III, Esq. NIXON PEABODY LLP One Embarcadero Center, 18th Floor San Francisco, CA 94111-3600 Tel: (415)984-8320 Fax: (866)246-2754 E-mail: lcisz@nixonpeabody.com CENTRO PROPERTIES: Blackstone Submits Bid For Centro Assets ----------------------------------------------------------- Blackstone Group LP has made a preliminary offer for Centro Properties Group, The Wall Street Journal reports, citing people familiar with the matter. The Journal says Blackstone made an "indicative bid" by the December 17 deadline set by Centro, although the size of the bid could not be determined. The Journal notes that its sources also said the buyout firm primarily is interested in Centro's 600 U.S. properties. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 22, 2010, the Sydney Morning Herald said indicative bids for Centro Properties' AU$13.5 billion worth of assets were lodged on Dec. 17, 2010, and the list of bidders includes the large Australian retail landlords. Offers for the U.S. assets are said to be coming mainly from private investors and hedge funds, which pay lower costs due to the low interest rates in the U.S. but are happy to take on some of the Centro debt. Another interested party is said to be the Israel-based Gazit Globe. Among the interested buyers for some or all of the malls are Westfield, Lend Lease's Australian Prime Property Fund, CFS Retail Trust, Queensland Investment Corp, and the Singapore Government Investment Corp. According to SMH, Centro decided last month to put all its assets on the block after having received approval to refinance the next round of debt, which is due by this week. The sale of the assets comes almost three years to the day that Centro's former chief executive, Andrew Scott, and the board revealed the group did not have the funds needed to pay the AU$4 billion of debt that was due in December 2007. That resulted in the shares of the company dropping in value by as much as 90%. About Centro Properties Centro Properties Group (ASX:CNP)-- http://www.centro.com.au/-- is a retail investment organization specializing in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management of US$24.9 billion. * * * Centro Properties Group owes its creditors as much as AU$18.4 billion and its deadline to repay these debts has been extended four times since December 2007, when the company's market value plunged. The Troubled Company Reporter-Asia Pacific reported on July 30, 2010, CNP secured a one-year extension from December 31, 2010, to December 31, 2011, for US$2.3 billion of debt within Super LLC (a joint venture of CNP, Centro Retail Trust and Centro MCS 40). The extension includes Super LLC's US$1.7 billion bridge term loan (US$1.2 billion CNP, US$0.5 billion CER) and US$580.0 million of additional debt. ================ H O N G K O N G ================ HIDDEN DRAGON: Members' and Creditors Meetings Set for January 24 ----------------------------------------------------------------- Members and creditors of Hidden Dragon Gifts Limited will hold their final meetings on January 24, 2011, at 11:00 a.m., and 11:30 a.m., respectively at 15/F, Empire Land Commercial Centre, 81-85 Lockhart Road, Wanchai, in Hong Kong. At the meeting, Yu Tak Yee Beryl, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KATAHDIN LIMITED: Members' Final Meeting Set for January 26 ----------------------------------------------------------- Members of Katahdin Limited will hold their final general meeting on January 26, 2011, at 11:00 a.m., at 19 New Bridge Road, Singapore 0105, Republic of Singapore. At the meeting, Tam Yat Hung John, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SWIRE AVIATION: Placed Under Voluntary Wind-Up Proceedings ---------------------------------------------------------- At an extraordinary general meeting held on December 17, 2010, shareholders of Swire Aviation Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Peter Alan Kilgour Vernon Francis Moore 33rd Floor, One Pacific Place 88 Queensway, Hong Kong THUNDERBIRD ELECTRONICS: Creditors' Proofs of Debt Due January 25 ----------------------------------------------------------------- Creditors of Thunderbird Electronics Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by January 25, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 17, 2010. The company's liquidator is: Mr. Lee Kwok On Alexander Rooms 1901-2, Park-In Commercial Centre 56 Dundas Street Kowloon TOPS FOOD: Creditors' Proofs of Debt Due January 25 --------------------------------------------------- Creditors of The Tops Food Company Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by January 25, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 17, 2010. The company's liquidator is: Mr. Lee Kwok On Alexander Rooms 1901-2, Park-In Commercial Centre 56 Dundas Street Kowloon VIGO HOLDINGS: Creditors' Proofs of Debt Due January 25 ------------------------------------------------------- Creditors of Vigo Holdings Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Jan. 25, 2011, to be included in the company's dividend distribution. The company's liquidator is: Leung Che Wing Unit B, 17/F Capital Commercial Building 446-448 Shanghai Street Mongkok, Kowloon Hong Kong WELLON SHIPPING: Creditors' Meeting Set for January 25 ------------------------------------------------------ Creditors of Wellon Shipping Limited will hold their meeting on January 25, 2011, at 3:00 p.m., for the purposes provided for in Sections 241, 242, 243, 244, 251, 255A and 283 of the Companies Ordinance. The meeting will be held at 8/F., Richmond Commercial Building, 109 Argyle Street, Mongkok, Kowloon, in Hong Kong. ========= I N D I A ========= AIR INDIA: Seeks INR2,000cr Equity Infusion in 2011-12 Budget ------------------------------------------------------------- The Hindu Business Line reports that Civil Aviation Minister Praful Patel said Air India had sought an additional INR2,000 crore as equity infusion in Budget 2011-12. "The airlines earlier proposal for providing INR1,200 crore as equity is likely to go before the Cabinet soon. In addition, the airline has sought an additional INR2,000 crore in Budget 2011- 12," the Business Line quoted Patel as saying. The Business Line says the government earlier this year provided INR800 crore to Air India. Official sources told Business Line that the state-owned carrier could get as much as INR3,000 crore during the financial year 2011-12. According to Business Line, the infusion of additional equity as also the recently announced guidelines of the Reserve Bank of India on debt restructuring for the domestic airline industry will help Air India stay afloat. "The acceptance of the debt restructuring plan of Air India (which should be cleared in about a month) will see the airline debt come down to around INR25,000 crore from the current INR40,000 crore. With the government pumping in INR5,000 crore as equity into the airline, it will enjoy a debt equity ratio of 1:5. This is an accepted level and banks should have no problems lending funds to the airline," sources told Business Line. Business Line discloses that Air India reported a 22.6% increase in network revenue at INR7,250 crore in April-November 2010 as compared with INR5,911 crore in the year-ago period. The airline's equity currently stands at INR145 crore, Business Line 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. ARVIND KUMAR: CRISIL Places 'BB-' Rating on INR13-Mil. Term Loan ---------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank facilities of Arvind Kumar Nand Kumar Ltd, which is part of the Arvind Kumar group. Facilities Ratings ---------- ------- INR37.0 Million Cash Credit BB-/Stable (Assigned) INR13.0 Million Term Loan BB-/Stable (Assigned) INR4.0 Million Working Capital P4+ (Assigned) Demand Loan INR7.0 Million Letter of Credit P4+ (Assigned) INR3.5 Million Bank Guarantee P4+ (Assigned) The ratings reflect AKG's modest scale of operations, and exposure to risks related to adverse regulatory changes, and volatility in the raw material prices. These rating weaknesses are partially offset by AKG's promoters' extensive experience in the rice and prestressed cement concrete pole industry. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of ANL, and Bheroodan Jethmall (P) Ltd (BJL), together referred to as the Arvind Kumar group; this is because both the entities are under a common management, and in similar lines of business; also ANL has extended guarantees to BJL's bank facilities. Outlook: Stable CRISIL believes that AKG will continue to benefit from extensive experience of the promoters' in the rice and pre-stressed cement concrete pole industry. The outlook may be revised to 'Positive' if AKG's operating revenues and margins increase significantly along with improvement in gearing and networth while maintaining its debt protection metrics. Conversely, the outlook may be revised to 'Negative' if the group's profitability declines significantly or debt protection metrics deteriorate significantly due to large debt-funded capital expenditure. About the Group ANL, incorporated in 1974 by Mr. P D Bhatter, and his brother Mr. Hardayal Bhatter, is engaged in milling and processing of rice and manufacturing of pre-stressed cement concrete poles. Rice division and poles division constituted about 60% and about 40% of the gross sales respectively in 2010. Majority of the rice is sold to food corporation of India and majority of the pre-stressed cement concrete poles are primarily sold to the state electricity board. The rice unit is located in West Bengal & the poles unit is located at Jaipur, Rajasthan with an installed capacity of 80 tonnes per day and 40,000 poles per year respectively. BJL is engaged in manufacturing of pre-stressed cement concrete poles with an installed capacity of about 15,000 poles per year. ANL reported a profit after tax (PAT) of INR3.39 million on net sales of INR120.0 million for 2009-10 (refers to financial year, April 1 to March 31) against a PAT of INR0.87 million on net sales of INR307.1 million for 2008-09. GANGAR OPTICIANS: ICRA Upgrades Rating on INR14.7cr Debt to 'LBB-' ------------------------------------------------------------------ ICRA has upgraded the ratings of INR 14.70 Crore fund-based bank facilities of Gangar Opticians Pvt Ltd from 'LB+' to 'LBB-' with a stable outlook. The rating upgrade takes into account, the improvement in financial profile of the firm, characterized by improvement in profitability indicators, reduction in debt levels and improvement in the company's inventory cycle. Higher revenues generated from the new retail outlets resulted in improvement in the company's financials. The rating also factors in the established track record of the promoters in the eye care business and the reasonable brand equity of the company in Mumbai and neighboring regions. However, the rating continues to remain constrained by GOPL's modest scale of operations, weak profitability indicators and stretched capital structure characterized by weak coverage indicators and negative net worth. The aggressive addition of 14 new retail outlets in FY2009 had resulted in high debt levels and stretched inventory cycle in the last couple of years. Although there was an improvement in margins and working capital cycle in FY10 on account of addition of relatively lesser number of outlets and faster stock turnover in the existing outlets, the company's ability to sustain this trend remains to be seen given the company's plans for further expansion of its retail outlets over the near to medium term. ICRA also takes note of the high competitive intensity inherent in the business with the presence of large number of organized and unorganized players on account of low entry barriers in the business which limit margin expansion. About Gangar Opticians GOPL, a family run business, was incorporated in the year 1977 as a partnership firm by Mr. Jayantilal B. Gangar and was converted into a private limited company in 2000. The company is engaged in assembling and retailing of eye care and eyewear products. GOPL being a closely held company is run by various members of the Gangar family who constitute the board of directors of the company. GOPL is operating under the brand name of Gangar EyeNation. The company has its assembling unit at Prabhadevi, Mumbai and 21 retail outlets in Mumbai and its suburbs. The company is also in the process to open five to six outlets in FY 11 of which three new outlets one in Mumbai and two in Pune are in finalization stage. Recent Results: GOPL recorded a net profit of INR0.58 Crores on an operating income of INR36.09 Crores for the year ended March 31, 2010 and net profit of INR2.46 Crore on an operating income of INR 20.24 for the half year ended September 30, 2010. GUNTUR SPINNING: ICRA Reaffirms 'LBB' Rating on INR15.91cr Loan --------------------------------------------------------------- ICRA has reaffirmed an 'LBB' rating to the INR 15.91 crore term loans and INR 5.50 crore cash credit facilities of Guntur Spinning Mills Private Limited. The long term rating has been assigned a stable outlook. ICRA has also reaffirmed an "A4" rating to the INR 0.54 crore short term non-fund based facilities of GSMPL. The ratings continue to draw comfort from substantial experience of the promoters in cotton yarn manufacturing and the locational advantages arising on account of the availability of cotton (the primary raw material) in the adjacent area and support rendered by the promoters in the form of interest free unsecured loan. The assigned rating are however constrained by GSMPL's small scale of operations, stretched financial profile, strained cash flows and limited ability of yarn manufacturers to pass on hike in input costs. About Guntur Spinning Guntur Spinning Mills Private Limited, incorporated on August 25, 2005, is primarily engaged in production of cotton yarn. GSMPL has spinning facilities located in Guntur District with an aggregate installed capacity of 14,400 spindles. The company produces cotton yarn in counts ranging from 36s to 64s. The company commenced commercial production from April, 2007 after its manufacturing facilities at Guntur became operational, and at full capacity of 14,400 spindles from November 07 onwards. The project was set up with support from Technology Upgradation Fund Scheme under the Central Government. KANADE ANAND: CARE Assigns 'CARE BB+' Rating to INR42.72cr LT Loan ------------------------------------------------------------------ CARE assigns 'CARE BB+' and 'PR4+' ratings to the bank facilities of Kanade Anand Udyog Pvt Ltd. Amount Facilities (INR cr) Ratings ---------- -------- ------- Long-term Bank Facilities 42.72 'CARE BB+' Assigned Short-term Bank Facilities 12.00 'PR4+' Assigned Rating Rationale The ratings are constrained by high leverage position, customer concentration risk, elongated working capital cycle and increased competition from the organised and unorganised players in the Industry. The ratings however, derive strength from the experience of the promoters in the business, increasing sales volumes and captive galvanising plant approved by NTPC and PGCIL. Diversifying its customer base, improving its collection period and the ability of KAUPL to pass on the increase in raw material prices to its customers are the key rating sensitivities. Kanade Anand Udyog Private Limited was incorporated on July 12, 2005. The company manufactures electroforged floor gratings, cable trays and transmission line towers and structures. In December 2009, the company received an ISO 9001:2008 certification from Orion Registrar, Inc., USA. On a total operating income of INR112.34 crore, KAUPL earned a PAT of INR1.67 crore in FY09. As per the provisional results for the year ended March 31, 2010, KAUPL earned a PAT of INR2.13 crore on a total operating income of INR116.63 crore. KANWARJI CONSTRUCTION: ICRA Assigns 'LBB+' Rating to INR26cr Loan ----------------------------------------------------------------- ICRA has assigned 'LBB+' and 'A4+' ratings to INR26.00 crores Fund and Non-Fund Based bank limits of Kanwarji Construction Co. The long term rating carries a stable outlook. ICRA's ratings take into account KCC's reputed client base, its healthy current order book; and the positive outlook for the civil construction industry. Further, the rating takes comfort from KCC's low working capital intensity (measured by NWC/OI at 5% as on March 31, 2010) and its moderate gearing level of 0.91 times as on March 31, 2010. The ratings are however constrained by the highly competitive nature of the construction industry, relatively small scale of operations which results in low economies of scale and may also restrict it from bidding for large sized projects. The company is also exposed to client concentration risk and high sectoral concentration in segments such as structural works & site development. The contracts executed by the company are of low complexity which has resulted in relatively moderate margins and this situation is unlikely to change in the medium term. Kanwarji Construction Co. was incorporated in the year 1979 as a registered partnership company under the patronage of Sh. Kanwar Kishore for undertaking civil engineering projects. Later the construction activity was taken over by Sh. Suresh Kumar Gola and the constitution of the company was changed to a proprietorship concern. The firm has been engaged in the construction and maintenance work mainly for Government Organizations like Public Works Department, Army Welfare Housing Organisation, Jamia Hamdard University, Indian Railways Welfare Organisation, Air Force Naval Housing Board etc. It has executed diversified projects which include multistoried buildings, residential housing complexes, schools, industrial complexes, institutional buildings, hospitals etc. NOVOPAN INDUSTRIES: CRISIL Reaffirms 'D' Rating on INR160MM Loan ---------------------------------------------------------------- CRISIL's ratings on the bank loan facilities of Novopan Industries Ltd continue to reflect the delays by the company in servicing its term loans because of weak liquidity. The liquidity has been weak mainly because of cash losses incurred by the company in 2009-10 (refers to financial year, April 1 to March 31), and in the current year till date. Facilities Ratings ---------- ------- INR160 Million Working Capital Demand Loan D (Reaffirmed) INR280 Million Term Loan D (Reaffirmed) INR10 Million Bank Guarantee P5 (Reaffirmed) INR180 Million Letter of Credit P5 (Reaffirmed) NPIL also has a weak financial risk profile, marked by a high gearing and weak debt protection metrics, and is exposed to risks related to intense industry competition. These weaknesses are partially offset by NPIL's healthy market position in the wood panel industry. Update For 2009-10, NPIL posted an operating income of INR650 million, which was lower by 15 per from that in the previous year. The operating margin for the same period was about 1.1 per cent, against the operating loss in the previous year. The company has posted sales of INR340 million for the current year till September 30, 2010. During the same period, it posted an operating loss of INR0.3 million, with a cash loss of INR21.5 million. Apart from the cash loss, NPIL also had a constrained financial risk profile because of the company's high gearing (2.51 times as on March 31, 2010) and weak debt protection metrics. The company had a high bank limit utilization, averaging at above 95 per cent, over the 12 months through August 2010. The company does not have any significant capital expenditure plans for the medium term. NPIL reported a net loss of INR69.2 million on net sales of INR651.8 million for 2009-10 (refers to financial year, April 1 to March 31), against a net loss of INR109.7 million on net sales of INR725.0 million for 2008-09. About Novopan Industries Set up in 1974, NPIL is a part of the GVK group. The company manufactures and sells pre-laminated and plain particle boards under the Novopan brand. The company also manufactures modular furniture. ORIENTAL ENGINEERING: CRISIL Assigns 'BB+' Rating to INR20MM Loan ----------------------------------------------------------------- CRISIL has assigned its 'BB+/Stable/P4+' rating to Oriental Engineering Works Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR12.0 Million Cash Credit BB+/Stable (Assigned) INR20.0 Million Term Loan BB+/Stable (Assigned) INR5.5 Million Stand By Limit BB+/Stable (Assigned) INR11.0 Million Proposed LT BB+/Stable (Assigned) Bank Loan Facility INR18.0 Million Bill Discounting P4+ (Assigned) INR6.0 Million Bank Guarantee P4+ (Assigned) The rating reflects OEWL's exposure to risks related to small scale of operations, and intense competition in the hydraulic equipments and dewatering pumps the industry, and to cyclicality in capacity addition in end-user industry. These rating weaknesses are partially offset by OEWL's moderate financial risk profile, marked by moderate gearing and average debt protection metrics and long track record in the engineering and capital goods industry. Outlook: Stable CRISIL believes that OEWL will maintain its business risk profile over the medium term, on the back of its longstanding presence in the engineering and capital goods industry. The company's financial risk profile is expected to remain moderate, marked by moderate gearing and average debt protection metrics. The outlook may be revised to 'Positive' if OWEL scales up its operations substantially, while maintaining its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company registers declining sales, or it contracts large debt to fund its capital expenditure, weakening its financial risk profile. About Oriental Engineering OEWL was incorporated in 1937. The company, promoted by the Saluja family of Haryana manufactures hydraulic equipments (cylinders, pumps, system components, presses tools pullers) and dewatering pumps. The company also manufactures sheet metal components such as metal trunks, blasting cabinets, file boxes and first aid boxes. These components are generally sold with hydraulic equipments. The company's facilities at Lahore (Pakistan) were shifted to Yamuna Nagar, Haryana (India) in 1947. The company is currently managed by Mr. Raman Saluja, third generation of promoter. OEWL has tied up with three German and a Belgium-based companies for selling their products in India on commission basis. OEWL reported a profit after tax (PAT) of INR6.7 million on net sales of INR210.4 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR8.8million on net sales of INR237.3 million for 2008-09. P.K. OVERSEAS: CRISIL Reaffirms 'B+' Rating on INR15MM Rupee Loan ----------------------------------------------------------------- CRISIL's rating on the bank facilities of P.K. Overseas Pvt Ltd continue to reflect PK Overseas' constrained financial risk profile marked by low net worth, and small scale of operations in the rice exports industry. These rating weaknesses are partially offset by PK Overseas' established relationships with suppliers and customers, and the benefits the company reaps from the healthy growth prospects for rice exporters. Facilities Ratings ---------- ------- INR20.0 Million Cash Credit Limit B+/Stable (Reaffirmed) INR15.0 Million Rupee Term Loan B+/Stable (Reaffirmed) INR50.0 Million Packing Credit P4 (Reaffirmed) INR15.0 Million Letter of Credit/ P4 (Reaffirmed) Bank Guarantee Outlook: Stable CRISIL believes that PK Overseas will continue to benefit over the medium term from its established relationships with suppliers and clients. The company's financial risk profile is, however, expected to remain constrained over the medium term, because of low margins, weak debt protection metrics and expected debt funding of its capacity addition programme over the medium term. The outlook may be revised to 'Positive' if PK Overseas' net worth and profitability improve significantly. Conversely, the outlook may be revised to 'Negative' if the company's gearing increases and debt protection metrics weaken because of larger-than-expected debt-funded capital expenditure (capex). Update In 2009-10 (refers to financial year, April 1 to March 31), operating profitability of PK Overseas has improved backed by increased proportion of revenues from milling and sorting business (which yields higher margins than its trading business). Gearing of the company has increased to 2.3 times (as on 31st March, 2010) from 1.2 times (as on March 31, 2009), driven by more-than- expected short-term debt contracted by the company to fund its increasing scale of operations. The promoters of PK Overseas have infused equity of INR5.6 million (including share application money of INR2.6 million) in 2010-11 in order to partly fund the company's working capital requirements. PK Overseas is witnessing a stretched receivable cycle as it is trying to tap large customers in export markets and is establishing its brands in India. The stretch in receivables has led to moderately high utilization of its cash credit limit at an average of 81 per cent for the past 12 months ended August 31, 2010. The stretch in the receivables and high bank limit utilization is expected to continue over the medium term. PK Overseas reported a profit after tax (PAT) of INR2.0 million on net sales of INR594.6 million for 2009-10, against a PAT of INR2.0 million on net sales of INR461.7 million for 2008-09. About P.K. Overseas PK Overseas was set up in 1994 by Mr. Prem Manchanda. The Company is engaged in milling, processing and selling of basmati rice in the export market under its own brands such as Trimurti, India Salaam, Mansa and Raj Shahi. The company's plant is situated at Delhi with a total installed capacity of 8tph. The company derives majority of its revenue from export market and sells mainly in Middle East, Far East and Europe. RAMA PHOSPHATES: CRISIL Assigns 'BB-' Rating to INR65.7MM LT Loan ----------------------------------------------------------------- CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank facilities of Rama Phosphates Ltd. Facilities Ratings ---------- ------- INR362.7 Million Cash Credit Facility BB-/Stable (Assigned) INR65.7 Million Proposed LT Bank Loan BB-/Stable (Assigned) Facility INR101.6 Million Letter of Credit P4+ (Assigned) The ratings reflect RPL's susceptibility to adverse changes in government regulations and its limited track record of profitable operations. These weaknesses are partially offset by the benefits arising from government's nutrient-based subsidy for single super phosphate (SSP) manufacturers. Outlook: Stable CRISIL believes that RPL will significantly improve its credit risk profile and net worth, backed by robust growth in revenues and profitability. This may help the company move out of Board for Industrial and Financial Reconstruction's (BIFR's) purview. The outlook may be revised to 'Positive' if the company achieves more- than-expected profitability and net cash accruals, manages its working capital efficiently, and moves out of BIFR's purview. Conversely, the outlook may be revised to 'Negative' if the company's revenues, operating margin and operating cycle weaken, significantly exerting pressure on its profitability and liquidity profile. About Rama Phosphates RPL, incorporated in 1984, was promoted by the Ramsinghani family. The company manufactures SSP, sulphuric acid and soya oil. It has three manufacturing facilities based in Pune, Indore and Udaipur, with a combined installed capacity of 4,62,000 tonnes per annum (tpa) for SSP, 1,83,600 tpa for sulphuric acid, 1,20,000 tpa for soya crushing and 30,000 tpa for refining. Presently, it is owned and managed by Mr. Daulat Jaisingh Ramsinghani and his son Mr. Haresh Daulat Ramsinghani. RPL reported a profit after tax (PAT) of INR 36.9 million on net sales of INR 1009 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR 41.7 million on net sales of INR 2563.8 million for 2008-09. RAJ KUMAR: CRISIL Assigns 'BB+' Rating to INR76.3MM LT Bank Loan ---------------------------------------------------------------- CRISIL has assigned its 'BB+/Stable' rating to the bank facilities of Raj Kumar Goel Educational Foundation. The rating reflects RKGEF's small scale of operations, moderate financial risk profile constrained by exposure to other group trusts and susceptibility to adverse regulatory changes and intense competition in the education sector. These weaknesses are partially offset by wide portfolio of educational courses offered by RKGEF. Facilities Ratings ---------- ------- INR85.0 Million Cash Credit BB+/Stable (Assigned) INR76.3 Million Proposed LT BB+/Stable (Assigned) Bank Loan Facility Outlook: Stable CRISIL believes that RKGEF will generate healthy cash accruals over the medium term on account of the wide range of courses it offers. The outlook may be revised to 'Positive' if RKGEF increases its operating income by increasing its intake capacity, and consequently, its scale of operations and profitability. Conversely, the outlook may be revised to 'Negative' if RKGEF undertakes a larger-than-expected debt-funded capital expenditure programme, if demand for its courses declines, or in case of any unfavorable regulatory changes. RKGEF, established in 1999, is a trust started by the late Mr. Raj Kumar Goel. The trust established the Raj Kumar Goel Institute of Technology in Ghaziabad (Uttar Pradesh) in September 2000. RKGIT is recognised by All India Council for Technical Education, Ministry of Human Resource Development, Government of India, and is affiliated to Uttar Pradesh Technical University, Lucknow. RKGIT offers the Bachelor of Technology, Bachelor in Pharmaceuticals Science, Master of Computer Application, Master of Business Administration and Masters in Pharmaceuticals Science. The trust established Lala Mangat Ram Maha Vidyalaya in 2003. LMRM offers one course: Bachelor of Education. This course by LMRM is approved by the National Council for Teacher Education and is affiliated to CCS University, Meerut (Uttar Pradesh). RKGEF reported a profit after tax (PAT) of INR15.4 million on net sales of Rs150.0 million for 2008-09 (refers to financial year, April 1 to March 31), against a PAT of INR1.8 million on net sales of INR125.3 million for 2007-08. SANGRUR AUTOS: CRISIL Reaffirms 'BB' Rating on INR90MM Cash Credit ------------------------------------------------------------------ CRISIL's rating on the bank facilities of Sangrur Autos Pvt Ltd continues to reflect SAPL's weak financial risk profile, marked by high gearing and a small net worth. This rating weakness is partially offset by the company's healthy market share and well- established distribution network in southern Punjab, and the benefits that it derives from its promoters' experience in the automobile dealership business. Facilities Ratings ---------- ------- INR90.0 Million Cash Credit Limit BB/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SAPL will maintain its market share in southern Punjab over the medium term. The outlook may be revised to 'Positive' if SAPL improves its capital structure or operating margin. Conversely, the outlook may be revised to 'Negative' in case SAPL's cash accruals decline significantly, most likely because of increased competition in the southern Punjab's motorcycle dealership market, or if the company undertakes a debt- funded capital expenditure programme, leading to a further weakening of its capital structure. About Sangrur Autos Incorporated in 1988 by Mr. Amit Goyal, SAPL is a dealer of Bajaj Auto Ltd's (rated 'AAA/FAAA/Stable/P1+' by CRISIL) motorbikes in southern Punjab. The company has dealerships at Sangrur, Barnala, Malerkotla, and Sunam (all in southern Punjab). SAPL derives about 94 per cent of its total revenues from the sale of new vehicles, and the rest through sale of spares and servicing of two-wheelers at its workshops. SAPL reported a profit after tax (PAT) of INR2.0 million on net sales of INR590 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR2.0 million on net sales of INR546 million for 2008-09. SATYAM COMPUTER: Tax Department Orders Audit of Satyam Accounts --------------------------------------------------------------- The Wall Street Journal reports that Satyam Computer Services Ltd., rebranded as Mahindra Satyam, said Tuesday it has received a letter from India's tax department requesting it to get its accounts audited for the tax assessment years of 2002-2003 and 2007-2008. The move, the Journal relates, is likely to be a precursor to a demand for the fraud-hit company to pay up taxes. The Journal notes that Satyam said in November the department was seeking tax amounting to INR5.03 billion (US$111.5 million) for the five-year period between the financial year 2003 and 2008. At that time, the Journal relates, Satyam said it had filed a petition with the Central Board of Direct Taxes asking it to stay the tax collection. As reported in the Troubled Company Reporter-Asia Pacific, former Satyam Chairman Ramalinga Raju resigned in January 2009 after admitting he manipulated the company's accounts, including inflating cash and bank balances, understating liabilities and overstating debtors position. Mr. Raju's confession prompted investigations into the company by different entities including Andhra Pradesh state police, the U.S. Securities and Exchange Commission and the Securities and Exchange Board of India. A three-member board was subsequently created by the government, which appointed KPMG and Deloitte Touche Tohmatsu to reevaluate the software company's books. Several groups considered filing class action suits against the company. Mr. Raju was later found to have invented more than one quarter of Satyam's workforce and used fictitious names to siphon INR200 million (US$4.1 million) a month out of the company. Tech Mahindra Ltd. acquired control of the company in April 2009. Satyam reported a INR1.25 billion (US$28 million) loss for the 12 months ended March 31, 2010, and an INR81.8 billion loss for 2009. About Satyam Computer Headquartered in Secunderabad, India, Satyam Computer Services Limited (BOM:500376) -- http://www.mahindrasatyam.net/-- is a global information technology (IT) services provider, offering a range of services, including systems design, software development, system integration and application maintenance. Satyam offers a range of IT services to its customers, including application development and maintenance, consulting and enterprise business solutions, extended engineering solutions and infrastructure management services. The Company provides services to customers from various industries, including insurance, banking and financial services, manufacturing, telecommunications, transportation and engineering services. Satyam BPO Limited (Satyam BPO), a majority-owned subsidiary of the Company is engaged in providing business process outsourcing (BPO) services. Satyam operates in two segments: IT services and BPO services. As of July 6, 2009, Tech Mahindra Limited had acquired roughly 31.04% of the Company's outstanding shares of common stock. STRAWBERRY STUDIO: CRISIL Reaffirms 'BB+' Rating on INR13.5MM Loan ------------------------------------------------------------------ CRISIL's ratings on the bank facilities of Strawberry Studio Exports Pvt Ltd continue to reflect SEPPL's average financial risk profile, marked by a small net worth, small scale of operations, and exposure to risks related to customer concentration in the company's revenue profile. These rating weaknesses are partially offset by the extensive experience of SSEPL's promoters in the garment manufacturing business. Facilities Ratings ---------- ------- INR13.5 Million Rupee Term Loan BB+/Stable (Reaffirmed) INR80.0 Million Export Packing Credit P4+ (Reaffirmed) INR5.0 Million Letter of Credit P4+ (Reaffirmed) INR1.5 Million Bank Guarantee P4+ (Reaffirmed) Outlook: Stable CRISIL believes that SSEPL's financial risk profile will remain constrained by a small net worth over the medium term. The outlook may be revised to 'Positive' if the company significantly scales up its operations, while maintaining its profitability. Conversely, the outlook may be revised to 'Negative' if SSEPL's financial risk profile deteriorates materially, because of additional debt taken to fund capital expenditure or large incremental working capital requirements. Update SSEPL's sales increased by 25.6% to INR297 million in 2009-10 (refers to financial year, April 1 to March 31) because of higher business volumes and realizations because of the addition of new customers. However, the company's operating profit margin declined by 377 basis points (bps; 100 bps equals 1 percentage point) to 9.3% in 2009-10 because of increase in raw material prices and appreciation of the Indian rupee against the euro during the reviewed period, as reflected in the company's sales of INR83.2 million for the first half of 2010-11. CRISIL believes that SSEPL's sales and operating margin will remain under pressure over the medium term because of lower order flow and adverse currency movements. SSEPL is expected to maintain its financial risk profile over the medium term in the absence of any debt-funded capex plans and term debt obligations. On account of the absence of term debt obligations, the cash flow from operations will be available to meet the incremental working capital requirements. Also, the company has no plan of dividend payout in the near term. About Strawberry Studio Set up by Mr. Hemant Ruparelia in 1996, SSEPL manufactures and exports ready-made woven garments, primarily for women and children. The company has 21 different production lines, each dedicated to manufacturing a particular variety of garments. Its manufacturing facility at Noida (Uttar Pradesh) has capacity to produce around 135,000 garments per month. SSEPL reported a profit after tax (PAT) of INR7.0 million on net sales of INR297.0 million for 2009-10, against a PAT of INR10.0 million on net sales of INR236.0 million for 2008-09. TIPS INDUSTRIES: CRISIL Assigns 'BB' Rating to INR60MM Cash Credit ------------------------------------------------------------------ CRISIL has assigned its 'BB/Stable/P4+' ratings to Tips Industries Ltd's bank facilities. Facilities Ratings ---------- ------- INR60.00 Million Cash Credit BB/Stable (Assigned) INR10.00 Million Bank Guarantee P4+ (Assigned) The ratings reflect Tips's exposure to inherent risks in the film industry and the company's large working capital requirements. These rating weaknesses are partially offset by the experience of Tips' promoters in the entertainment industry, and the company's moderate financial risk profile, marked by an adequate net worth, healthy debt protection metrics, and low gearing, which, however, is susceptible to unpredictable performance of films. Outlook: Stable CRISIL believes that Tips will maintain its business risk profile over the medium term, on the back of its established market presence and the extensive experience of its promoters, despite its exposure to risks relating to the performance of its planned films. The outlook may be revised to 'Positive' if substantial growth in music royalty revenues reduces its dependence on the performance of new films. Conversely, the outlook may be revised to 'Negative' if Tips's financial risk profile weakens significantly, most likely due to significant losses on new films. About Tips Industries Tips is one of the premier film production/distribution and music companies in India. The company is promoted by Mr. Kumar Taurani and his brother Mr. Ramesh Taurani. Tips was established as a partnership firm in 1988 as Tips Cassettes & Record Company. The firm was reconstituted as a private limited company in 1996. It was again reconstituted as a public limited company with the current name, with an issue of shares to the public in 2000; the company is listed on the Bombay Stock Exchange and the National Stock Exchange. Tips has produced 28 films and has a music library of more than 25,000 songs. Recently, Tips produced the movies Prince, Toh Baat Pakki, Ajab Prem Ki Gajab Kahani, and Race. As part of its share buyback plan, Tips, during June to August 2010, bought back 1.35 million shares for a consideration of INR63.9 million at an average price of INR47.50 per share. All the shares bought back have been extinguished and requisite returns have been filed with the Securities and Exchange Board of India, stock exchanges, and the registrar of companies. Mr. Ramesh Taurani is under prosecution for the murder of Mr. Gulshan Kumar (of T-series) in 1997. Another person charged for the murder is Mr. Nadeem Saifee (part of the Nadeem-Shravan music director team). Mr. Taurani was acquitted of the murder charges by a sessions court in 2002, as the prosecution could not prove charges. However, an appeal against the acquittal has been filed in the Bombay High Court. Any adverse ruling by the High Court can have a major impact on Tips, and therefore, constitutes a key rating sensitivity factor. Tips reported a profit after tax (PAT) of INR84.8 million on an operating income of INR844.3 million for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR114.5 million on an operating income of INR651.8 million for 2008-09. VISHAL FABRICS: CARE Assigns 'CARE BB+' Rating to INR29.24cr Loan ----------------------------------------------------------------- CARE assigns 'CARE BB+' & 'PR4' ratings to bank facilities of Vishal Fabrics Pvt Ltd. Amount Facilities (INR cr) Ratings ---------- -------- ------- Long-term Bank Facilities 29.24 'CARE BB+' Assigned LT/Short-term Facilities 28.00 'CARE BB+'/'PR4' Assigned Rating Rationale The ratings are mainly constrained due to the recent re-phasement of its term loans, relatively high gearing level, working capital intensive nature of the business, intense competition because of the fragmented nature of the industry and environmental risk due to the proximity of its processing units to the city. The ratings are however take into account the VFPL's long-standing track record & established position in the textile processing industry, experienced promoters and modest profitability. The improvement in financial risk profile through controlling the debt level and improving the profitability and successful completion of its ongoing capex are the key rating sensitivities. Vishal Fabrics Private Limited, was promoted by Mr. Jyotiprasad Chiripal (promoter of the Chiripal group based out of Ahmedabad) and his family members in October 1985, and was a dormant company till 1999-2000. Subsequently, VFPL became a subsidiary of Chiripal Industries Limited (Rated: CARE BB/PR4), which currently holds 92.30% stake in VFPL. It started off with the trading of fabrics in the domestic and international markets. During 1999-2000, it took over the two fabric processing units on lease and started processing of own grey fabric as well as processing the fabric on job-work basis. Over the years, the company has expanded its processing capacities and put up its own processing plants as well. The present installed processing capacity of VFPL, including leased capacities; is estimated at 1,100 lakh meters per annum. WINDSOR GARDENS: CRISIL Assigns 'BB+' Rating to INR95-Mil. LT Loan ------------------------------------------------------------------ CRISIL has assigned its 'BB+/Stable' rating to the long-term loan facility of Windsor Gardens Pvt Ltd. Facilities Ratings ---------- ------- INR95.00 Million Long-Term Loan BB+/Stable (Assigned) The ratings reflect WGPL's exposure to demand risks associated with its ongoing project, concentrated revenue profile, and below- average financial risk profile. The rating weaknesses are partially offset by the experience of WGPL's promoters in real estate development, and its proven project execution capabilities. Outlook: Stable CRISIL believes that WGPL will benefit over the medium term from the experience of its promoters in the residential real estate development segment. The outlook may be revised to 'Positive' if the company generates larger-than-expected cash flows, most likely on account of earlier-than-expected completion of its ongoing project, or in case of more-than-expected sales realizations. Conversely, the outlook may be revised to 'Negative' if there are any delays in project completion or receipt of booking advances from customers, or in case of a significant fall in realizations or if the company undertakes a large, debt-funded capital expenditure project. About Windsor Gardens WGPL was established in 1995 by Mr. M Srinivasa Rao. The company constructs residential properties, primarily in Bangalore. WGPL has completed 5 residential real estate projects aggregating over 260 apartments till date. The company is currently developing the Phase II of its Windsor Four Seasons project on Bannerghatta Road, Bangalore, which comprises of 84 apartments, scheduled to be completed by November 2011. The total cost of construction of the project is INR157 million, is being funded with term loans of INR 95 million, unsecured loans from the promoter's of INR 40 million and the remaining through advances from customers. The company has completed around 50% of the construction and has received customer advances for 14 apartments totalling INR 63 million. WGPL reported a profit after tax (PAT) of INR59.2 million on net sales of INR366.8 million for 2009-10 (refers to financial year, April 1 to March 31), against a net loss of INR13.2 million on net sales of INR44.7 million for 2008-09. ========= J A P A N ========= JAPAN AIRLINES: To Terminate 170 Pilots and Flight Crews -------------------------------------------------------- Kyodo News reports that Japan Airlines Corp. said Tuesday it will ax about 170 pilots and flight attendants on December 31 after its voluntary retirement program failed to meet the job reduction target. Kyodo relates that the carrier said those facing dismissal include about 80 pilots, 60 flight attendants and 30 employees who are on leave. "I feel very sorry for those who are subject to the dismissal and their families," Kyodo quoted JAL President Masaru Onishi as saying at a news conference. "We'll aim to stand on the starting line for reconstruction and revive the company as early as possible (to keep the airline alive)." The Tokyo District Court earlier in this month approved JAL's rehabilitation plan, which aims to cut the company's payroll to 32,600 employees by the end of March, shedding roughly 16,000 jobs, or around 30% of its group workforce of 48,714 as of March 31, the end of the last business year. As part of the reduction efforts, Kyodo notes, JAL announced Nov. 15 that it will terminate the employment contracts of up to 250 pilots and flight attendants. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-based company mainly engaged in the provision of air transport services. The Company is active in five business segments through its 203 subsidiaries and 83 associated companies. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. Japan Airlines Corporation, Japan Airlines International Co., Ltd., and JAL Capital Co., Ltd., on January 19, 2010, filed the petitions to commenced corporate reorganization proceedings with the Tokyo District Court. The Court appointed the Enterprise Turnaround Initiative Corporation of Japan and Eiji Katayama, Esq., as reorganization trustees. Japan Airlines Corp. filed for reorganization January 19, 2010, in the Tokyo District Court and filed a Chapter 15 petition in New York (Bankr. S.D.N.Y. Case No. 10-10198). The Company estimated debts at $28 billion. SILVER SEIKO: Defaults on JPY1 Billion Promissory Notes ------------------------------------------------------- Bloomberg News reports that Silver Seiko Ltd.'s banks halted transactions with the company after it defaulted on JPY1 billion (US$12 million) of promissory notes. Bloomberg, citing a statement to the bourse on December 28, says the company may be delisted from the Tokyo Stock Exchange. Based in Japan, Silver Seiko Ltd. manufactures home use machines and appliances, including knitting machines, sewing machines, vacuum cleaners, air cleaners and dish dryers. The Group is also engaged in the manufacture of environmental equipment such as air cleaner, and information equipment such as printers and shredders. ========= K O R E A ========= DAEWOO EN'G: KDB Acquires 89.9 Million New Shares in Daewoo ----------------------------------------------------------- Yonhap News reports that the Korea Development Bank has taken part in a KRW1 trillion (US$871 million) rights issue of Daewoo Engineering & Construction Co. in a bid to help normalize the builder's parent group, Kumho Asiana Group. The lender said that some 89.9 million new shares in Daewoo Engineering were acquired via a private equity fund headed by KDB, according to Yonhap. As reported in the Troubled Company Reporter-Asia Pacific on July 1, 2009, Kumho Asiana Group decided to put Daewoo Engineering and Construction up for sale. Kumho Asiana, which bought Daewoo Engineering for US$5 billion in 2006, said it has not yet determined the exact size of stake to be sold, the Financial Times said. The size of the sale would be designed to "minimize the group's losses and to reduce a buyer's burden." The announcement, according to the FT, follows pressure on Kumho to raise money by finding fresh investors in Daewoo by the end of July to ease a liquidity crunch. Kumho has a 33% stake in Daewoo with management control while financial investors hold a further 39%. About Daewoo Engineering Headquartered in Seoul, South Korea, Daewoo Engineering & Construction Co. -- http://www.daewooenc.com/-- has become a world leader in civil engineering, housing construction, power and industrial plant development, architectural services, and construction of liquid natural gas facilities. In addition to large-scale domestic projects, Daewoo has more recently built gas plants in Nigeria, a hospital in Libya, and the Trump World Tower in New York, to name a few. ===================== P H I L I P P I N E S ===================== BANCO FILIPINO: Court Orders Implementation of Business Plan ------------------------------------------------------------ The Manila Standard Today reports that the Makati City Regional Trial Court has ordered the Bangko Sentral ng Pilipinas and the Monetary Board to carry out the business plan of Banco Filipino and grant it without delay financial assistance and a package of regulatory relief. The Manila Standard says Judge Joselito C. Villarosa of RTC branch 66 issued last November 19, 2010, a writ of preventive injunction that restrained the monetary officers and representatives from committing acts prejudicial to Banco Filipino's operation. According to the Manila Standard, the business plan for the once- biggest savings bank in the country with almost four million depositors before its illegal closure in 1985 during the time of the late Central Bank Gov. Jose Fernandez, was approved by the Monetary Board through Resolution No. 1668 and subsequent amendments. The Manila Standard, citing Banco Filipino sources, relates the court-approved business plan entails PHP25 billion in new financial assistance from the Bangko Sentral. Banco Filipino, on orders of the trial court, posted a PHP50- million bond for the enforcement of the writ and the immediate implementation of the bank's Business Plan, the Manila Standard notes. In the same writ, the Manila Standard adds, the lower court stopped both MB and Bangko Sentral "from enforcing other regulatory measures and abuses calculated to coerce petitioner (Banco Filipino) into agreeing to drop and/or withdraw its suits and damage claims against respondents (MB and BSP) and to waive future claims against respondents or their officers, employees, representatives and all persons acting in their behalf." The Manila Standard states that the high court earlier allowed Banco Filipino to pursue its PHP18.8-billion damage suit against the Bangko Sentral before the Makati City court in connection with the bank's illegal closure in 1985. In allowing the suits to proceed, says the Manila Standard, the high tribunal upheld a Court of Appeals' ruling that aid the Bangko Sentral is a "successor-in-interest" of the Central Bank, which padlocked and liquidated the savings bank controlled by the Aguirre family. About Banco Filipino Banco Filipino Savings & Mortgage Bank -- http://www.bancofilipino.com/-- was organized in 1964, principally to engage in the general business of savings and mortgage banking and of a trust company and to perform such acts as may be incidental thereto. It started operations on July 9, 1964. Banco Filipino offers to the public full domestic banking services, which are five main types, namely: cash services; commercial services; loans; money market services; and trust services. The Troubled Company Reporter - Asia Pacific reported on May 17, 2006, that the Bangko Sentral ng Pilipinas approved an emergency loan of PHP190 million to Banco Filipino in order for it to remain liquid, after certain branches experienced heavy withdrawals. The state central bank had ordered Banco Filipino's closure in 1985 due to insolvency. However, the Supreme Court overturned Bangko Sentral's decision and ordered the bank to reopen in 1994 and resume business as a full service savings bank with trust operations. =============== T H A I L A N D =============== TT&T PCL: Thai Bankruptcy Court Approves Rehabilitation Plan ------------------------------------------------------------ Reuters reports that Thailand's Central Bankruptcy Court on December 28, 2010, approved a rehabilitation plan for TT&T Pcl involving the restructuring of THB26 billion in debt. According to Reuters, TT&T Chief Executive Suwan Assadanukul said the plan includes debt reduction, a debt-to-equity conversion and repayment. Creditors had been seeking repayment of THB61 billion in debt, Reuters says. Reuters relates that Suwan, who is in charge of the five-year rehabilitation plan, said TT&T, which has cash in bank deposits of THB2.4 billion, was due to repay 5% of debt to creditors within 15 days. State-run telecoms firm TOT Pcl and Thailand's top lender, Bangkok Bank, are among the creditors, Reuters notes. Reuters discloses that T&T received court approval in 2008 to start a business rehabilitation plan. TT&T, which has suffered five consecutive years of losses, has not given details about the restructuring. About TT& T Pcl TT&T Public Company Limited (BAK:TT&T) is a Thailand-based company engaged in the provision of fixed-line telecommunication services. The Company operates a joint undertaking of and investments in the expansion project of telephone services with TOT Public Company Limited. As of December 31, 2009, the Company had two subsidiaries: TT&T Subscriber Services Co., Ltd., which is engaged in the provision of Internet services, and Triple T Global Net Co., Ltd., which is engaged in the provision of data communication services. ============= V I E T N A M ============= VIETNAM SHIPBUILDING: Gets Government Loans to Pay Salaries ----------------------------------------------------------- The International Business Times reports that the government of Vietnam said it will provide interest-free loans Vietnam Shipbuilding Industry Group (Vinashin) to pay wages, after the company was unable to make the first repayment on a US$600-million loan to Credit Suisse. IBTimes says the loans, provided by the state-owned Development Bank of Vietnam and Vietnam Bank for Social Policies, will also pay for unemployment compensation and social, health and unemployment insurance. The government also provided the company significant tax concessions, IBTimes adds. Vietnam Shipbuilding Industry Group "was facing the risk of bankruptcy" in June 2010, according to an Aug. 4 government statement obtained by Bloomberg News. Vinashin doesn't have enough funds for some projects after its customers and lenders were hit by the global recession that started in 2008. The company also overdiversified its business activities and hasn't managed its cash flow and debt. The Troubled Company Reporter-Asia Pacific, citing Bloomberg News, reported on Sept. 7, 2010, that Vietnamese police arrested four former officials of Vietnam Shipbuilding Industry Group as the government extended its investigation into financial difficulties at the state-owned company. The Ministry of Public Security said the people arrested on Sept. 3 include two former board members, Tran Quang Vu and Tran Van Liem, and ex-general directors of two of Vinashin's subsidiaries, Nguyen Van Tuyen and Nguyen Tuan Duong. Pham Thanh Binh, the company's former chairman and chief executive officer, was arrested in August. Vietnam Shipbuilding Industry Group is a state-owned shipbuilding company. ********* 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 U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Psyche A. Castillon, Julie Anne G. Lopez, 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 ***