/raid1/www/Hosts/bankrupt/TCRAP_Public/110127.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, January 27, 2011, Vol. 14, No. 19
Headlines
A U S T R A L I A
CIRA INTERNATIONAL: City Plan Said to Buy Site for AU$27 Million
FRIGRITE LIMITED: 100 Ex-Workers Not Privy to Entitlements
INDOPHIL RESOURCES: SMC May Seek Another Due Diligence Extension
C H I N A
FUQI INT'L: NASDAQ Grants Firm's Request for Continued Listing
ZHONG AN: Moody's Assigns '(P)B2' Rating on Proposed Senior Bond
H O N G K O N G
DONGSHENG STONE: Court Enters Wind-Up Order
FOOK SING: Placed Under Voluntary Wind-Up Proceedings
GAINVIEW HOLDINGS: Members' Final Meeting Set for February 24
GAINWAY CLEANING: Court Enters Wind-Up Order
GERMANY MEDICAL: Court to Hear Wind-Up Petition on February 9
HARMONY DESIGNS: Court to Hear Wind-Up Petition on March 9
HINGFAT INDUSTRIES: Court Enters Wind-Up Order
HK FAR WORLD: Members' Final Meeting Set for February 21
INT'L ORTHODONTIC: Members' Final Meeting Set for February 22
KAM TAI: Court Enters Wind-Up Order
KOOLL INTERNATIONAL: Creditors Get 100% Recovery on Claims
KWONG YUEN: Creditors Get 100% & 1.086& Recovery on Claims
LOYAL PROFIT: Court to Hear Wind-Up Petition on March 23
L P CONTRACTORS: Wong and Lo Step Down as Liquidators
LOYAL TOP: Court to Hear Wind-Up Petition on March 23
I N D I A
ABHAY COTEX: CRISIL Assigns 'C' Rating to INR138.4MM LT Loan
AUM REGENCY: CARE Rates INR15cr LT Bank Facilities at 'CARE BB+'
ASHAPURA INFRASTRUCTURE: CRISIL Rates INR35MM Cash Credit at 'B+'
BALAJI COKE: CARE Places 'CARE BB' Rating on INR33cr LT Bank Loan
BALASORE ALLOYS: Fitch Upgrades Rating on Two Loans to 'BB-(ind)'
B N JEWELLERS: CRISIL Rates INR100 Million Cash Credit at 'BB'
CHEMICO SYNTHETICS: CRISIL Puts 'BB+' Rating on INR80M Cash Credit
CHITRA UTSAV: CRISIL Rates INR162.0 Million Term Loan at 'B-'
G-ONE AGRO: CRISIL Reaffirms 'B+' Rating on INR59.6MM Term Loan
INDIA TODAY: ICRA Puts 'LBB' Rating on INR.4cr Bank Facilities
INDUSTRIAL METAL: CARE Assigns 'CARE BB' Rating to INR2cr LT Loan
JALANDHAR AMRITSAR: Fitch Lowers Rating on Bank Loan to 'BB+(ind)'
MB LAMINATORS: CRISIL Assigns 'BB-' Rating to INR11MM Term Loan
PALTECH COOLING: ICRA Reaffirms 'LBB+' Rating on INR2cr Term Loan
RAM LAL: CRISIL Assigns 'BB' Rating to INR110MM Cash Credit
RAMA KRISHNA: CARE Assigns 'CARE BB+' Rating to INR4.8cr LT Loan
SRINIVASA FASHIONS: CRISIL Assigns 'BB-' Rating to INR34MM Loan
SURESH ANGADI: Fitch Raises Rating on INR100MM Loans to 'B+(ind)'
THERMO CABLES: CRISIL Cuts Rating on INR134.2MM Term Loan to 'BB'
TRAVANCORE GOLD: CRISIL Rates INR90 Million Cash Credit at 'BB'
I N D O N E S I A
BAKRIE TELECOM: Fitch Assigns 'B' Rating to US$130 Mil. Notes
PT FAJAR: Fitch Upgrades Rating on US$100 Mil. Sr. Notes to 'B+'
K O R E A
KOREA LINE: STX Offshore Sees Little Impact From Receivership
KOREA LINE: Excel Maritime Says it Has No Exposure to Firm
M A L A Y S I A
SOUTHERN CEMENT: Placed in Members' Voluntary Liquidation
N E W Z E A L A N D
SOUTH CANTERBURY: Helicopter NZ Assets Get Strong Interest
YELLOW PAGES: Bankers Write Off NZ$1.05 Billion of Debt
* NZ Businesses' Cashflow Remains Under Pressure, D&B Says
T A I W A N
TAISHIN BILLS: Fitch Upgrades Individual Rating to 'C'
V I E T N A M
SAIGON THUONG: Fitch Downgrades Individual Rating to 'D/E'
VIETNAM BANK: Fitch Affirms Individual Rating at 'D/E'
- - - - -
=================
A U S T R A L I A
=================
CIRA INTERNATIONAL: City Plan Said to Buy Site for AU$27 Million
-----------------------------------------------------------------
Goldcoast.com.au reports that Korean developer Carl Lee has scored
a victory over Cira International receivers after renegotiating a
AU$33 million deal for a prime development site in central Surfers
Paradise.
The report relates that the receiver is understood to have
accepted a new AU$27 million offer for the 1.14ha site just north
of the Gold Coast International hotel, now known as the QT Gold
Coast hotel.
According to golcoast.com.au, the agreement comes just three
months after receiver, John Greig of Deloitte, put the property
back on the market in an extraordinary move that sparked rumors
that Mr. Lee's company City Plan Partners could not settle on the
original 2009 deal.
Although Mr. Lee has declined to comment on the negotiations in
the past, a spokesman had said he was still pursuing settlement,
which is now running 13 months over schedule, goldcoast.com.au
relates.
Goldcoast.com.au notes that the exact nature of the new deal is
being kept under wraps.
City Plan, says goldcoast.com.au, has teamed up with another
international buyer to bring its proposed AU$700 million twin-
tower plan for the site to fruition.
According to the report, Mr. Greig is selling the property on
behalf of Cira International, a Raptis Group and CP1 joint venture
that earmarked the site as part of a four-tower redevelopment of
the GCI precinct.
City Plan, which is undertaking the Victoria Tower over-50s
development in Southport, was expected to settle on the original
AU$33 million deal in December 2009, goldcoast.com.au adds.
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 26, 2008, Raptis Group Limited disclosed that on November 21,
2008, Lend Lease Limited appointed John Greig and Nicholas Harwood
of Deloitte as joint and several receivers in respect of a parcel
of land owned by Cira International Pty Ltd, an equity accounted
associate company of Raptis, comprising a joint venture with CP1
Limited. Raptis said this parcel of land is the site immediately
to the north of the Gold Coast International Hotel.
FRIGRITE LIMITED: 100 Ex-Workers Not Privy to Entitlements
---------------------------------------------------------
Jessica Bennett at Moorabbin Leader reports that Frigrite
Limited's 100 retrenched workers have been left in the dark about
their entitlements after the company went into administration.
As reported in the Troubled Company Reporter-Asia Pacific on
January 20, 2011, Frigrite Refrigeration Pty Limited and Frigrite
Refrigeration (QLD) Pty Limited, both subsidiaries of ASX-listed
Frigrite Limited, have been placed into voluntary administration.
Mr. Craig Shepard and Mr. John Park were on January 18, 2010,
appointed as voluntary administrators.
According to the report, Australian Manufacturing Workers Union
acting assistant Victorian secretary Leigh Diehm said that the
company had limited funding and was unlikely to pay employees
their entitlements.
Moorabbin Leader notes Mark Malloy, who had worked at the Grange
Rd factory for 18 years, said that the workers had been given no
guarantee they would receive their entitlements and were still
waiting on payment for their last seven days' work.
Administrator Craig Shepard said the company's ability to operate
its subsidiaries had been hit by a loss of service and maintenance
work with Coles, and the loss of a major contract with Woolworths,
the report discloses. Mr. Shepard, Moorabbin Leader relates, said
operations had been suspended while they assessed the future, and
expressions of interests in the recapitalization or sale were
being sought.
About Frigrite Limited
Frigrite Limited (ASX:FRR) -- http://www.frigrite.com.au/-- is
an Australia-based company, which operates within the food and
beverage industry. The Company focuses on refrigeration in the
supermarket sector and air conditioning in various sectors. It
employs about 369 people.
INDOPHIL RESOURCES: SMC May Seek Another Due Diligence Extension
----------------------------------------------------------------
BusinessWorld Online reports that San Miguel Corp. might seek
another extension before deciding on whether or not to acquire
control of Indophil Resources NL.
According to BusinessWorld, Ramon S. Ang, president and chief
operating officer of San Miguel, said the "exclusivity period,"
which was already extended by a month, will end in February but
due diligence has yet to be completed.
"The due diligence is ongoing," BusinessWorld quoted Mr. Ang as
saying. "I am not sure if we will be able to complete [the due
diligence]."
"If we will not complete it, we might ask for another extension
but if they do not want to, we can do nothing," Mr. Ang added,
according to BusinessWorld.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 10, 2011, The Australian said Indophil Resources NL has
agreed to extend by a month the due diligence that San Miguel
Corp. is conducting on the Australian mining company.
San Miguel completed in October last year its acquisition of a
10.1% stake in Indophil for US$41.29 million.
The share placement agreement also gave San Miguel an exclusive
right to conduct due diligence and decide whether it should
initiate a tender offer to acquire additional shares in Indophil,
The Australian added.
Indophil Resources has a 37.5% stake in the Tampakan copper-gold
project while Xstrata Copper, the world's fourth largest copper
producer, holds the remaining 62.5%.
The Tampakan mine is considered Southeast Asia's largest
undeveloped copper-gold prospect. It is estimated to contain 13.5
million tons of copper and 15.8 million ounces of gold, at a grade
of 0.6% copper and 0.2 grams per ton of gold.
About Indophil Resources
Headquartered in Melbourne, Australia, Indophil Resources NL
-- http://www.indophil.com/-- conducts exploration and
development of gold and copper-gold opportunities in South East
Asia. The Company is a joint venture partner in the Tampakan
Copper-Gold Project in the Southern Philippines. The two segments
of the Company are Australia and the Philippines. The Company has
other exploration interests in the Philippines apart from the
Tampakan project.
* * *
Indophil Resources NL reported three consecutive net losses of
$10.58 million, $14.84 million and $985,107 for the years ended
Dec. 31, 2009, 2008 and 2007, respectively.
=========
C H I N A
=========
FUQI INT'L: NASDAQ Grants Firm's Request for Continued Listing
--------------------------------------------------------------
FUQI International, Inc. disclosed that a NASDAQ Listing
Qualifications Panel has granted the Company's request for an
extension of time, as permitted under NASDAQ's Listing Rules, to
comply with the annual shareholder meeting and proxy solicitation
requirements set forth in NASDAQ Listing Rules 5620(a) and
5620(b), respectively. In accordance with the Panel's decision,
the Company must solicit proxies and hold its annual meeting on or
before May 9, 2011.
As previously reported, on September 29, 2010, FUQI received a
NASDAQ notice of noncompliance due to the delay in certain filings
with the Securities and Exchange Commission and that the Company's
securities were subject to delisting unless it requested a
hearing. The Company timely requested a hearing and appeared
before the Panel on November 11, 2010. On December 9, 2010, the
Panel rendered its determination to continue the Company's listing
subject to an extension through March 28, 2011, by which date the
Company must file with the SEC all delayed reports and any
required restatements.
About FUQI International
Based in Shenzhen, China, FUQI International, Inc. is a leading
designer, producer and seller of high quality precious metal
jewelry in China. FUQI develops, promotes, manufactures and sells
a broad range of products consisting of unique styles and designs
made from gold and other precious metals such as platinum and
Karat gold.
ZHONG AN: Moody's Assigns '(P)B2' Rating on Proposed Senior Bond
----------------------------------------------------------------
Moody's Investors Service assigned a first-time 'B1' corporate
family rating to Zhong An Real Estate Ltd.
Moody's has also assigned a provisional '(P)B2' rating to the
company's proposed RMB-denominated USD senior unsecured bond
issue.
The ratings outlook is stable.
The proceeds from the bond issue will be used to fund Zhong An's
land acquisitions and working capital requirements.
The bond's provisional rating status will be removed after Zhong
An has completed the issuance of the bonds, and all satisfactory
terms and conditions have been met.
"Zhong An's B1 corporate family rating reflects the company's
small-scale operations and material geographic and cash flow
concentrations in comparison to other rated Chinese developers,"
says Kaven Tsang, a Moody's AVP/Analyst.
"Moody's expects that Zhong An's sales will be more volatile due
to the company's heavy reliance on a few key projects, mainly
Landscape Bay, the International Office Center, and the Yuyao
project," adds Tsang, who is also Moody's lead analyst for Zhong
An.
"In addition, its expansion plan will entail high execution risk
given its lack of a track record for such a rapid expansion, as
well as a more challenging Chinese property market in 2011," says
Tsang.
The development of commercial properties such as the International
Office Center will partly mitigate the performance volatility
stemming from the negative impact of regulatory measures on the
residential sector. However, the sustainable demand for large-
scale commercial projects in Qianjiang Century City, Hangzhou
remains untested.
Still, Zhong An's established brand in Hangzhou and its niche
business model, which focuses on the affluent Yangtze River Delta
region, will benefit from the demand for high-end properties and
the fast growing economies in the region over the medium to long
term.
In addition, the company's projects and land bank in Hangzhou are
in good locations, and the land costs for some of the projects
have been low. These factors support the company's moderate
profit margin and allow for some flexibility for price adjustments
in a down market.
Zhong An's bond rating is notched down to B2 due to structural and
legal subordinations. The ratio of secured and subsidiary debt to
total assets stood at 21.3% as of June 2010. Moody's expects that
this ratio will stay around 20-25% for the next year or two.
The stable outlook reflects Moody's expectation that Zhong An will
maintain its niche business model with its focus on Yangtze River
Delta, as well as obtaining funding from onshore banks.
The rating could be under pressure for a downgrade if (1) Zhong
An's sales or operating cash flow are weaker than anticipated; or
(2) its balance sheet cash is lower than expected; or (3) it
materially accelerates development and makes aggressive land
acquisition funded by debt.
Moody's would regard the following financial metrics as signals
for downward rating pressure: (1) adjusted debt/capitalization
consistently above 55%; or (2) EBITDA interest coverage below 2-
2.5x.
The prospects for upward rating pressure are limited over the near
term.
Over the medium term, however, positive rating pressure could
emerge if Zhong An (1) achieves its planned sales growth with
stable profit margins; (2) decreases its geographic concentration
risk; (3) achieves a stable financial profile with adjusted
debt/capitalization of 45-50% and EBITDA interest coverage above
4-5x; or (4) strengthens its liquidity by broadening its banking
relationships and expanding its free cash flow, which will support
its growing scale of operations.
The principal methodology used in this rating was Moody's Global
Homebuilding Industry published in March 2009.
Zhong An Real Estate Ltd. develops residential and commercial
properties in the Yangtze River Delta Area. It has a land bank of
around 6.2 million sqm in gross floor area distributed mainly in
Hangzhou and Zhejiang Province, as well as Huaibei and Hefei in
Anhui Province. Zhong An also has a small investment portfolio,
with a hotel and a retail mall in Hangzhou.
================
H O N G K O N G
================
DONGSHENG STONE: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on December 14, 2010,
to wind up the operations of Dongsheng Stone Industrial (HK)
Company Limited.
The company's liquidator is Pui Chiu Wing.
FOOK SING: Placed Under Voluntary Wind-Up Proceedings
-----------------------------------------------------
At an extraordinary general meeting held on January 3, 2011,
creditors of Fook Sing Factory Building Owners' and Tenants'
Association Limited resolved to voluntarily wind up the company's
operations.
The company's liquidator is:
Cheng Mi Kuen
22nd Floor, Shum Tower
268 Des Voeux Road
Central, Hong Kong
GAINVIEW HOLDINGS: Members' Final Meeting Set for February 24
-------------------------------------------------------------
Members of Gainview Holdings Limited will hold their final general
meeting on February 24, 2011, at 10:30 a.m., at Unit B, 17/F.,
Capital Commercial building, 446-448 Shanghai Street, Mongkok,
Kowloon, in Hong Kong.
At the meeting, Leung Che wing, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
GAINWAY CLEANING: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on January 3, 2011,
to wind up the operations of Gainway Cleaning Limited.
The company's liquidator is:
Mat Ng
John Lees Associates
20/F Henley Building
5 Queen?s Road
Central, Hong Kong
GERMANY MEDICAL: Court to Hear Wind-Up Petition on February 9
-------------------------------------------------------------
A petition to wind up the operations of Germany Medical X-Ray
Centre Limited will be heard before the High Court of Hong Kong on
February 9, 2011, at 9:30 a.m.
Wong Kee Ching filed the petition against the company on Dec. 30,
2010.
The Petitioner's solicitors are:
Messrs. Chan, Lau & Wai
8th Floor, Asia Standard Tower
Nos. 56-65 Queen?s Road
Central, Hong Kong
HARMONY DESIGNS: Court to Hear Wind-Up Petition on March 9
-----------------------------------------------------------
A petition to wind up the operations of Harmony Designs Limited
will be heard before the High Court of Hong Kong on March 9, 2011,
at 9:30 a.m.
DBS Bank (Hong Kong) Limited filed the petition against the
company on January 5, 2011.
The Petitioner's solicitors are:
Wilkinson & Grist
6th Floor, Prince?s Building
10 Chater Road
Central, Hong Kong
HINGFAT INDUSTRIES: Court Enters Wind-Up Order
-----------------------------------------------
The High Court of Hong Kong entered an order on January 12, 2011,
to wind up the operations of Hingfat Industries (Far East) Co.
Limited.
The official receiver is E T O'Connell.
HK FAR WORLD: Members' Final Meeting Set for February 21
--------------------------------------------------------
Members of Hong Kong Far World Technology Limited will hold their
final meeting on February 21, 2011, at 2:30 p.m., at Rooms 1901-2,
Park-In Commercial Centre, 56 Dundas Street, in Kowloon.
At the meeting, Lee Kwok On Alexander, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
INT'L ORTHODONTIC: Members' Final Meeting Set for February 22
-------------------------------------------------------------
Members of International Orthodontic Symposiums Limited will hold
their final general meeting on February 22, 2011, at 10:00 a.m.,
at its registered office.
At the meeting, Ha Chun, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
KAM TAI: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on December 14, 2010,
to wind up the operations of Kam Tai Fai China-HK Logistics
Limited.
The company's liquidator is Pui Chiu Wing.
KOOLL INTERNATIONAL: Creditors Get 100% Recovery on Claims
----------------------------------------------------------
Kooll International Consolidated Services Limited, which is in
compulsory liquidation, declared the final preferential and
ordinary dividends to its creditors on January 25, 2011.
The company paid 100% for preferential and 100% for ordinary
claims.
The company's liquidators are:
Kong Chi How Johnson
Lo Siu Ki
25th Floor Wing On Centre
111 Connaught Road
Central, Hong Kong
KWONG YUEN: Creditors Get 100% & 1.086& Recovery on Claims
-----------------------------------------------------------
Kwong Yuen Construction Company Limited, which is in compulsory
liquidation, declared the first and final preferential and
ordinary dividends to its creditors on January 24, 2011.
The company paid 100% for preferential and 1.086% for ordinary
claims.
The company's liquidator is:
Stephen Briscoe
602 The Chinese Bank Building
61-65 Des Voeux Road
Central, Hong Kong
LOYAL PROFIT: Court to Hear Wind-Up Petition on March 23
--------------------------------------------------------
A petition to wind up the operations of Loyal Profit Enterprise
Limited will be heard before the High Court of Hong Kong on
March 23, 2011, at 9:30 a.m.
Sprite Mass Enterprises Limited filed the petition against the
company on January 6, 2011.
The Petitioner's solicitors are:
Barlow Lyde & Gilbert
19th Floor, Cheung Kong Center
2 Queen?s Road
Central, Hong Kong
L P CONTRACTORS: Wong and Lo Step Down as Liquidators
-----------------------------------------------------
Wong Kam Wah and Lo Wing Hung stepped down as liquidators of L.P.
Contractors & Construction Co. (Hong Kong) Limited on January 18,
2011.
LOYAL TOP: Court to Hear Wind-Up Petition on March 23
------------------------------------------------------
A petition to wind up the operations of Loyal Top International
Limited will be heard before the High Court of Hong Kong on
March 23, 2011, at 9:30 a.m.
Sprite Mass Enterprises Limited filed the petition against the
company on January 6, 2011.
The Petitioner's solicitors are:
Barlow Lyde & Gilbert
19th Floor, Cheung Kong Center
2 Queen?s Road
Central, Hong Kong
=========
I N D I A
=========
ABHAY COTEX: CRISIL Assigns 'C' Rating to INR138.4MM LT Loan
------------------------------------------------------------
CRISIL has assigned its 'C/P4' ratings to the bank facilities of
Abhay Cotex Pvt Ltd.
Facilities Ratings
---------- -------
INR138.40 Million Long-Term Loan C (Assigned)
INR60.00 Million Cash Credit C (Assigned)
INR15.00 Million Bank Guarantee P4 (Assigned)
The ratings reflect ACPL's weak liquidity (as the company's
operations are in the start-up phase), which had resulted in the
company delaying in servicing its debt in the past. The company's
financial risk profile is also constrained by its high gearing and
weak debt protection metrics. The ratings also factor in ACPL's
susceptibility to volatility in raw material prices. These rating
weaknesses are partially offset by the experience of ACPL's
promoter's in the edible oils industry.
Incorporated in 2007 by Mr. Ashish Mantri, ACPL commenced
commercial production in January 2010 at its manufacturing
facility in Jalna (Maharashtra). The company is into cotton seed
solvent extraction, cotton seed de-oiled cakes, and crude cotton
seed oil, with technology imported from Germany. ACPL's capacity
of 180,000 tonnes per annum and has a current utilization of 53%.
ACPL reported a net loss of INR1.7 million on net sales of
INR220.5 million for 2009-10 (refers to financial year, April 1 to
March 31).
AUM REGENCY: CARE Rates INR15cr LT Bank Facilities at 'CARE BB+'
----------------------------------------------------------------
CARE assigns 'CARE BB+' to the bank facilities of AUM Regency
Housing.
Amount
Facilities (INR. crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 15.00 'CARE BB+' Assigned
Rating Rationale
The rating is constrained by constitution of the entity as an
Association of Person (AoP), high dependence on customer advances
to fund the project cost and the cyclical nature of the real
estate industry. The rating, however, derives strength from past
experience of the members of AoP and significant progress achieved
in construction of the project. Besides, the rating takes
cognisance of the tax exemption under Section 80IB (10) extended
to the AoP for the project. The ability of the AoP to achieve the
envisaged sales and mobilise sufficient advances to fund the
project remain the key rating sensitivities.
M/S Aum Regency Housing, a joint venture between M/s. Aum Housing
and Regency Housing Corporation (RHC), was formed to execute a
residential project at Baner, Pune with equal share in the profit
and loss arising out of the project. While AH has contributed the
development rights of the land, the RHC is responsible for
development & marketing of the project.
ASHAPURA INFRASTRUCTURE: CRISIL Rates INR35MM Cash Credit at 'B+'
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank
facilities of Ashapura Infrastructure Company.
Facilities Ratings
---------- -------
INR35.0 Million Cash Credit Limit B+/Stable(Assigned)
INR30.0 Million Bank Guarantee P4(Assigned)
The ratings reflect AIC's modest financial risk profile, marked by
small net worth and modest debt protection metrics, and its
exposure to risks related to small scale of operations, and
geographical, project, and segmental concentration in its revenue
profile. These rating weaknesses are partially offset by AIC's
longstanding presence in the construction business.
Outlook: Stable
CRISIL believes that AIC will benefit from its promoters'
extensive experience in the construction industry over the medium
term. Its financial risk profile is expected to remain modest,
backed by modest debt protection measures. The outlook may be
revised to 'Positive' in case of equity infusion by promoters,
leading to improvement in AIC's financial risk profile, or if the
firm significantly increases its scale of operations. Conversely,
the outlook may be revised to 'Negative' if AIC's order book or
operating margin declines, or if its financial risk profile
weakens, because of a large, debt-funded capital expenditure
programme.
About Ashapura Infrastructure
Set up in 2007, AIC is a partnership firm that constructs and
repairs roads in Gujarat. AIC is registered as a class AA
contractor by the Roads and Buildings Department of the Government
of Gujarat. AIC was set up by Mr. Danuba J Jadeja, who has thirty
years' experience in construction-related industries. The
promoters' plan to reconstitute the firm as a private limited
company in 2011-12 (refers to financial year, April 1 to
March 31).
AIC reported book profits of INR2.2 million on net sales of
INR184 million for 2009-10, as against book profits of
INR2.4 million on net sales of INR126 million for 2008-09.
BALAJI COKE: CARE Places 'CARE BB' Rating on INR33cr LT Bank Loan
-----------------------------------------------------------------
CARE assigns 'CARE BB' & 'PR4' ratings to the bank facilities of
Balaji Coke Industry Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term bank facilities 33.0 'CARE BB' Assigned
Short-term bank facilities 108.0 'PR 4' Assigned
The above ratings factor in loss at the PBILDT level in FY10,
large exposure in group companies, volatility in respect of prices
of traded goods, foreign exchange fluctuation risk and dependence
on the steel industry which is cyclical in nature. The ratings
also factor in the experience of the promoters, long track record
in the coke/coal business and comfortable gearing ratios.
Successful integration of the manufacturing division of Antai
Balaji Ltd with BCIPL which is proposed to be merged and future
performance of the steel industry would remain the key rating
sensitivities.
BCIPL was incorporated in 1991 and promoted by one Shri Naresh
Sharma of Kolkata. It is, currently, engaged in the trading of
mining products [coking coal and Low Ash Metallurgical coke
(LAMC)] and iron & steel products. With a view to expand its
business, BCIPL has decided to take over the manufacturing
division of ABL, a group company, engaged in the manufacturing of
LAMC, screening of coke & coal and consultancy services.
BALASORE ALLOYS: Fitch Upgrades Rating on Two Loans to 'BB-(ind)'
-----------------------------------------------------------------
Fitch Ratings upgraded India's Balasore Alloys Limited's National
Long-term rating to 'BB-(ind)' from 'B+(ind)'. The Outlook is
Stable. The agency has also taken the following rating actions on
BAL's bank loans:
-- Outstanding INR932.8 million long-term loans (reduced from
INR1,137.9 million): upgraded to 'BB-(ind)' from 'B+(ind)';
-- Sanctioned INR490.4 million fund-based limits: upgraded to
'BB-(ind)' from 'B+(ind)'; and
-- Sanctioned INR352.5 million non-fund based limits: affirmed
at 'F4(ind)'.
The upgrades reflect BAL's improved performance in H1FY11 and its
adherence to the corporate debt restructuring package, which was
approved in June 2009. In H1FY11, the company reported revenues
of INR2,998.91 million, EBITDA of INR508 million, and EBITDA
margin of 17%.
The ratings benefit to an extent from BAL's immunity to raw
material price volatility, given its access to captive chrome ore
fines mines at the Sukinda Valley. The company has also been
allocated a quartz mine close to its manufacturing plant at
Balasore, and manganese ore mines at Madhya Pradesh and Orissa.
The ratings also factor in BAL's diversified customer base in both
domestic and international markets, which accounted for its
capacity utilisation levels of 85%-90% over the last four years.
The ratings are constrained by the fact that the company is
undergoing the CDR programme as well as by the delays in
operationalisation of chrome ore mine for extraction of lump ore
and use of short-term debt for the purpose of financing long-term
assets. Furthermore in FY10, BAL's revenues dropped to INR4,151.9
million and EBITDA margins declined to 11.4% mainly due to the
fall in realisations.
Positive rating guidelines include BAL's ability to maintain
EBIDTA margin at current levels and net financial leverage at
below 2.5x. Conversely, a decline in its EBIDTA margins or any
debt-led capital plan, bringing net financial leverage to above
4.5x on a sustained basis, would be negative for the ratings.
BAL's total debt increased to INR2,331.3 million in FY10 due to
the conversion of irregular portions of working capital finance to
long-term loans and increased unsecured loans. Its total debt
includes a term loan of INR1,057.3 million, a working capital loan
from banks of INR500.5 million, and unsecured loans of INR773.5
million. The company's net leverage increased to 4.8x in FY10.
B N JEWELLERS: CRISIL Rates INR100 Million Cash Credit at 'BB'
--------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the cash credit
facility of B. N. Jewellers.
Facilities Ratings
---------- -------
INR100.0 Million Cash Credit BB/Stable (Assigned)
The rating reflects BNJ's modest financial risk profile marked by
moderate net worth. This weakness is partially offset by the
extensive experience of promoters in the jewellery industry.
CRISIL has combined the business and financial risk profiles of B
N Jewellers and M/s KBN Jewels. This is because these entities
collectively referred to herein as the BNJ Group, have a common
management and have significant business and financial
fungibility.
Outlook: Stable
CRISIL believes that BNJ will continue to benefit over the medium
term from its promoters' extensive experience in the jewellery
business and established relationships with customers. The outlook
may be revised to 'Positive' if BNJ reports significantly higher
than-expected growth in revenues and margins, and while
maintaining its debt protection metrics. Conversely, the outlook
may be revised to 'Negative' if the company's debt protection
metrics deteriorate or a significant deterioration in its working
capital cycle or a sharp decline in margins
About B. N. Jewellers
Established in 1989 as a proprietorship concern, by Mr. Babulal
Rawal, B. N. Jewellers was reconstituted as a partnership firm in
2004. Currently, Mr. Babulal Rawal and Mr. Nirmal Rawal (s/o
Mr. Babulal Rawal), handle the firm's day-to-day operations.
BNJ caters to the requirement of retail jewellers and manufactures
plain gold, platinum, and diamond-studded jewellery. The
company's showroom is located at Kalbadevi, Mumbai. BNJ has two
workshops at Andheri, Mumbai. M/s KBN Jewels is a sole
proprietorship of Mr. Kalpesh Rawal (s/o of Mr. Babulal Rawal).
It is engaged in manufacture of diamond studded jewellery.
BNJ Group reported a profit after tax (PAT) of INR18.5 million on
net sales of INR783.2 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR11.8 million on
net sales of INR507.6 million for 2008-09.
CHEMICO SYNTHETICS: CRISIL Puts 'BB+' Rating on INR80M Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Chemico Synthetics Ltd.
Facilities Ratings
---------- -------
INR80.0 Million Cash Credit Limit BB+/Stable (Assigned)
INR120.0 Million Letter of Credit P4+ (Assigned)
The ratings reflect CSL's limited track record of operations in
the manufacture of antimony metal, intense competition from China
and its small scale of operations. These weaknesses are partially
offset by CSL's average financial risk profile, marked by moderate
gearing and comfortable debt protection metrics, its diversified
end-user industry base, and the experience of its promoters in the
antimony industry.
Outlook: Stable
CRISIL believes that CSL will continue to benefit from the
experience of its promoters in the antimony industry. Its
financial flexibility will, however, remain constrained on account
of highly working-capital-intensive operations. The outlook may
be revised to 'Positive' if the company manages its working
capital requirements effectively, leading to improvement in its
financial risk profile, particularly its liquidity. Conversely,
the outlook may be revised to 'Negative' if the company's
profitability or topline is less than expected
About Chemico Synthetics
Incorporated in 1997, CSL started as a job worker for KTC Korea
Company Ltd. In 2008, it discontinued the same and started
producing ferro moly molybdenum, a ferro alloy used in the steel
industry as an anti-rusting and hardening agent. In 2009-10
(refers to financial year, April 1 to March 31), CSL diversified
into manufacturing antimony metal, which is used to make antimony
trioxide and its derivatives. The product finds application in
various industries. Antimony metal, which comprised 30% of the
company's revenues in 2009-10, is expected to contribute to around
90% of its revenues in 2010-11.
CSL's plant in Patparganj (New Delhi) has a capacity to
manufacture 180 to 200 tonnes per month (tpm) of antimony metal.
The plant's capacity for antimony pentaoxide, which the company
started manufacturing recently, is 120 tpm.
CSL reported a profit after tax (PAT) of INR14.4 million on net
sales of INR296 million for 2009-10, against a net loss of INR0.2
million on net sales of INR195 million for 2008-09.
CHITRA UTSAV: CRISIL Rates INR162.0 Million Term Loan at 'B-'
-------------------------------------------------------------
CRISIL has assigned its 'B-/Stable' rating to the term loan
facility of Chitra Utsav Video Pvt Ltd.
Facilities Ratings
---------- -------
INR162.0 Million Term Loan B-/Stable(Assigned)
The rating reflects CUPL's exposure to risks related to project
implementation, constrained financial flexibility due to expected
low surpluses in the initial years of operations of education
institute, and cyclicality in the Indian real estate sector.
These weaknesses are partially offset by the low funding risks
associated with CUPL's project, and its advantageous location in
Gurgaon (Haryana).
Outlook: Stable
CRISIL's believes that CUPL's credit risk profile will remain
sensitive to timely infusion of funds by promoters to service
interest obligations (starting from April 2011) on account of
likely delays in completion and consequently, generation of cash
flows from the project. The outlook may be revised to 'Positive'
in case of timely completion and stabilization of the project,
leading to more-than-expected cash accruals. Conversely, the
outlook may be revised to 'Negative' in case of delays in project
execution and smaller-than-expected cash accruals, leading to weak
liquidity.
About Chitra Utsav
CUPL was initially promoted by Mr. Akhil Bakshi, Mr. Anil Khanna
and Mr. Raghav Behl in 1989. Until 2008-09 (refers to financial
year, April 1 to March 31), it was involved in the development and
marketing of documentaries. It developed around 2000 hours of
documentaries for government agencies, and non-governmental
organizations. In 2009-10, Mr. Anil Khanna, through his company
RLF Ltd, purchased the share of the other promoters for INR60
million.
The company is developing a six-storey building in Sector 32,
Gurgaon. It plans to set up an educational institute dedicated to
mass communication studies, and lease out the remainder. The
total cost of the project is expected to be INR198 million, which
will be funded through term loans of INR162 million and balance
equity from promoters. The management expects project to be
completed by June 2011.
G-ONE AGRO: CRISIL Reaffirms 'B+' Rating on INR59.6MM Term Loan
---------------------------------------------------------------
CRISIL's rating on the bank loan facilities of G-One Agro Products
Ltd, which is part of the G-One group, continues to reflect the G-
One group's weak financial risk profile, marked by low net worth
and upcoming debt funded capex in the group company Naturefresh
Industries Ltd (NFIL; formerly, Naturefresh Agro Foods Ltd),
working-capital-intensive operations, and exposure to intense
competition in the edible oil industry. These rating weaknesses
are partially offset by the G-One group's successful entry into
the palm oil business and the extensive experience of the group's
promoters in the edible oil industry.
Facilities Ratings
---------- -------
INR240.0 Million Cash Credit Limit B+/Stable (Reaffirmed)
INR59.6 Million Term Loan B+/Stable (Reaffirmed)
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of GAPL and the recently set up
Naturefresh Industries Ltd (NFIL; formerly, Naturefresh Agro Foods
Ltd). This is because GAPL and NFIL, together referred to as the
G-One group, will be in a similar line of business, and are
expected to have strong business linkages. Furthermore, NFIL will
procure most of its raw material requirement from GAPL. Also, the
companies are expected to support each other in case of financial
exigencies.
Outlook: Stable
CRISIL believes that the G-One group will benefit over the medium
term from its established position in the edible oil market in
Gujarat and its successful entry into the palm oil business. The
outlook may be revised to 'Positive' in case of successful project
implementation in NFIL, or an improvement in the group's
profitability and capital structure. Conversely, the outlook may
be revised to 'Negative' in case of deterioration in the group's
capital structure, because of debt-funded capital expenditure
(capex) or large working capital requirements.
Update
GAPL's operational performance for 2009-10 (refers to financial
year, April 1 to March 31) has been in line with CRISIL's
expectation, with sales of INR1990 million. The company's
operating margin in 2009-10 improved slightly to around
1.9% from 1.7% in 2008-09. CRISIL believes that GAPL will post
healthy sales growth of over 25% in 2010-11 because of higher
contribution from palm oil plant which is operational since
January 2010. However, the company's operating margin is expected
to decline to around 1.5% in the near future because of higher
contribution from the low-margin palm oil segment.
GAPL has implemented a capex of INR10 million, funded through a
term loan of INR7.5 million, in 2009-10. GAPL has no plan of any
incremental debt-funded capex over the medium term. However, the
scale of investment has increase in NFIL to INR80 million from
earlier estimated at INR45 million because of increase in scope of
the project. NFIL is setting up a manufacturing unit, with
capacities to manufacture 100 tonnes per day (tpd) of vanaspati,
20 tpd of bakery shortening, and 10 tpd of margarine. The project
is expected to be funded in a debt-to-equity ratio of 2:1. The
promoters are expected to infuse INR10 million of equity and INR10
million of interest free unsecured loans to fund NFIL's capex.
NFIL has yet to receive the sanction for the term loan.
CRISIL believes that GAPL's financial risk profile will remain
weak over the medium term, marked by a high gearing and increase
in working capital requirements. However, the G-One group is
expected to generate sufficient cash accruals of INR18 million in
2010-11 against its debt obligation of INR12 million. Over the
medium term, the successful implementation and stabilization of
operations in NFIL will remain a key sensitivity factor.
GAPL reported a profit after tax (PAT) of INR6 million on net
sales of INR1990 million for 2009-10, against a PAT of INR5
million on net sales of INR1442 million for 2008-09.
About the Group
GAPL was set up in 1989 as a partnership firm named Welcome
Industries. Welcome Industries was renamed as G-One Group Agro
Industries in April 2001. In November 2003, the firm was
reconstituted as a private limited company and renamed GAPL. The
company manufactures refined edible oils and palm oil; it also
trades in mustard seeds.
NFIL plans to set up manufacturing units of vanaspati, bakery
shortening, and margarine, with capacities of 100 tpd, 20 tpd, and
10 tpd respectively, at a total cost of INR80 million, of which
INR60 million will be funded through debt.
INDIA TODAY: ICRA Puts 'LBB' Rating on INR.4cr Bank Facilities
--------------------------------------------------------------
ICRA has assigned 'LBB' rating to the INR0.4 crore fund based
facilities of India Today Fashions. ICRA has assigned Stable
outlook to the long-term rating. ICRA has also assigned 'A4'
rating to the INR6.0 crore fund based facilities of ITF.
The ratings are constrained by ITF's modest scale of operations,
stagnant sales, dependence on few clients for generating majority
of the revenues leading to client concentration risk, and exposure
to currency fluctuation risk. The ratings also taken into account
the high working capital intensity and the high competitive
intensity of the business. However, the ratings favourably factor
in the proprietor's experience in the industry and relationships
built by him with garment brands thereby exporting directly to
them.
About India Today
India Today Fashions (ITF) is a proprietorship concern engaged in
the manufacture and export of ladies and kids garments. Set up by
first generation entrepreneur Mr Rajendra Bhatia, the firm has
been in this business since 1992. The manufacturing facility is
based in Jaipur, Rajasthan. The facility spread over a 1206 sq
metre plot has around 350 stitching machines capable of doing 3500
pieces per day. The firm employs 400 staff which includes 50
technical and skilled persons. In 2010, a sister concern
Innovations has been set up, which is proprietorship concern of
Mr. Bhatia's brother, Mr. Deepak Bhatia. This firm will also
operate in the same segment.
INDUSTRIAL METAL: CARE Assigns 'CARE BB' Rating to INR2cr LT Loan
-----------------------------------------------------------------
CARE assigns 'CARE BB' and 'PR4' ratings to the bank facilities of
Industrial Metal Corporation.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 2.00 'CARE BB' Assigned
Short-term Bank Facilities 8.00 'PR4' Assigned
Rating Rationale
The ratings are constrained by IMC's relatively small size of
operations, low profit margins due to trading nature of the
business, its moderate liquidity position with an extended working
capital cycle, exposure to risk of fluctuations in steel prices
for the inventory held, high overall gearing, dependence on
capital expansion as well as replacement demand from the cyclical
end-user industries (oil & petroleum and engineering) and
inherent risk associated to the partnership constitution of the
entity. The ratings derive strength from the experience of IMC's
partners in the steel trading business, authorized dealership
agreements with leading domestic plate and pipe manufacturers for
distribution of alloy steel pipes, tubes and plates, and a
comfortable interest coverage ratio. IMC's ability to improve its
working capital management as well as liquidity position and
achieve the envisaged revenue and profitability are the key rating
sensitivities.
Established in 1972, by Mr. S. M. Sanghvi and Mr. G. M. Sanghvi as
a partnership firm, IMC is engaged in trading of carbon/alloy
steel pipes, tubes and plates, seamless pipes/tubes, fittings, and
mild steel (MS) channels, angles and beams. Currently,
Mr. Sanjay Sanghvi, Mr. Mukesh Sanghvi and Mr. Dinesh Sanghvi,
sons of Mr. S. M. Sanghvi, manage the day-to-day operations of the
firm.
JALANDHAR AMRITSAR: Fitch Lowers Rating on Bank Loan to 'BB+(ind)'
------------------------------------------------------------------
Fitch Ratings downgraded the ratings on Jalandhar Amritsar
Tollways Limited's long-term project bank loans to 'BB+(ind)' from
'BBB-(ind)' and placed the ratings on Ratings Watch Negative.
JATL is an SPV sponsored by IVRCL Assets and Holdings Limited,
which in turn is a c.80% subsidiary of IVRCL Infrastructure and
Projects Limited (IVRCL; 'A+(ind)'/Stable). It was set up for the
improvement, operation and maintenance of the existing two-lane
road to a four-lane dual carriageway, for a stretch of 49km on the
Jalandhar-Amritsar section of the National Highway 1 in Punjab.
JATL won a 20-year concession in November 2005 from the government
of India-owned National Highways Authority of India (NHAI,
'AAA(ind)'/ Stable) to build, operate and transfer the project as
part of the National Highways Development Programme.
In July 2009, Fitch downgraded the project bank loan ratings to
'BBB-(ind)' and placed them on Rating Watch Negative (RWN).
Following a review in January 2010, the ratings were affirmed and
the RWN maintained. The RWN has now been resolved following the
achievement of provisional commercial operations date (COD) in
April 2010 and commencement of tolling.
The downgrade reflects the project's worsened financial position
compared to that in mentioned in the previous review, following
eight months of revenue underperformance. On the basis of current
monthly toll revenue trends, including an inflation-linked 10%
rate hike effected in September 2010, Fitch expects revenue for
FY11 to fall significantly short of the initial projection for the
first post-COD year by about 20%-30%. In combination with
additional debt of c.800m - availed to part fund reported changes
in scope of the project, the cash flows are stretched, leading to
deterioration in credit quality.
A steeper negative rating action has hitherto been avoided
primarily due to the substantial sponsor support that has helped
the project meet cost overruns and helped the project in making
scheduled quarterly principal and interest payments on the loans
that started to amortize in December 2009.
Absent a dramatic ramp-up in toll revenues in the short-term,
Fitch believes that the project will continue to have to depend on
equity injections from the sponsor to meet debt service
obligations, failing which a loan restructuring could become
inevitable. The agency will closely monitor for developments on
these three fronts and a less-than-satisfactory outcome could
result in further negative rating actions, which could even be
multi notch.
Fitch will maintain the RWN until confirmation is received on the
debt restructuring or infusion of additional sponsor equity or
both.
Fitch notes that project economics, although diluted by events of
the last two years, continue to remain strong enough to fully
retire debt over the life of the concession. An eight-year tail
allows considerable headroom for manoeuvrability; conservative
revenue forecasts based on actual operating data -- albeit for a
very limited period --- demonstrate the project's ability to pay
off all its debt before the expiry of the concession.
Should NHAI compensate the project for the delays and cost
overruns that resulted from the change in scope, it could trigger
an upward rating movement though the form, extent and timing of
the compensation are all uncertain at this juncture.
MB LAMINATORS: CRISIL Assigns 'BB-' Rating to INR11MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of M.B. Laminators.
Facilities Ratings
---------- -------
INR55.0 Million Cash Credit BB-/Stable (Assigned)
INR11.0 Million Term Loan BB-/Stable (Assigned)
INR21.0 Proposed Long-Term Bank BB-/Stable (Assigned)
Loan Facility
INR7.5 Million Letter of Credit P4+ (Assigned)
INR0.5 Million Bank Guarantee P4+ (Assigned)
The ratings reflect MB Laminators' small scale of operations in a
highly fragmented and competitive industry, its stagnant operating
income in the recent past (because of procurement-related issues),
and highly working-capital-intensive operations. These rating
weaknesses are partly offset by MB Laminators' moderate financial
risk profile marked by a low gearing.
Outlook: Stable
CRISIL expects MB Laminators' revenue growth to remain under
pressure because of intense competition; but the firm's financial
risk profile is expected to remain moderate in the medium term.
The outlook may be revised to 'Positive' if MB Laminators
generates more-than-expected growth in sales and maintains its
profitability. Conversely, the outlook may be revised to
'Negative' if the firm's financial risk profile deteriorates
because of large, debt-funded capital expenditure or decline in
its margins.
About MB Laminators
MB Laminators was established in 2003 as partnership firm by
Mr. Sandeep Morwal and Mr. Shrikant Morwal. The firm manufactures
various types of high-density polyethylene bags, and polypropylene
bags, used for packing cement, textiles, grains, fertilizers, and
textiles. The total capacity of the firm's manufacturing units in
Daman is 3000 tonnes per annum.
MB Laminators reported a profit after tax (PAT) of INR1.6 million
on net sales of INR159.4 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR12.0 million on
net sales of INR178.7 million for 2008-09.
PALTECH COOLING: ICRA Reaffirms 'LBB+' Rating on INR2cr Term Loan
-----------------------------------------------------------------
ICRA has reaffirmed the 'LBB+' rating to INR2.0 Crore of term
loan, and INR7.0 Crore of fund based limits of Paltech Cooling
Towers and Equipments Limited. ICRA has reaffirmed the 'A4+'
rating to INR5.0 Crore of non-fund based limits of the company.
The long term rating carries a stable outlook.
ICRA's ratings take into account the risks arising out of the
highly competitive and fragmented nature of the company's core
business of cooling towers, modest scale of operations of the
company with respect to industry majors and susceptibility of its
margins to raw material price fluctuations. The ratings are
however supported by the long experience and established track
record of the promoter in cooling tower and chilling plant
industry, low gearing levels and the positive demand outlook for
the businesses that it is operating in.
About Paltech Cooling
Paltech Cooling Towers & Equipments Limited started its commercial
production in the year 1986 in the field of Cooling Towers and
Chilling Plants for various industrial applications from concept
to commissioning. Besides this the company is also engaged into
supply of all types of components of cooling towers like Gear
reducers, PVC Fills, Flow controlled valve, FRP Fan cylinders,
Wooden components, Nozzles etc. The company also undertakes the
redesigning and up gradation of cooling towers. The company has an
integrated production unit in Sohna (Gurgaon District) spread over
an area of more than 1 Lakh Sq. Ft. with warehousing capacity. The
company has technical collaboration with IIT Mumbai in designing
power saving FRP fans and gear reducers. The company has the
membership of the reputed organizations like CTI (USA), CII,
FICCI, and ASSOCHAM. The Company supplies its products majorly in
domestic market only with a marginal part of total production
being exported to Nepal, Bhutan, and Dubai, Sri Lanka besides
African, Far East and Middle East Countries.
In FY2010 the Company achieved an operating income of INR 24.2
Crore and a PAT of INR 0.88 Crore. The gearing level of the
company as on 31st March, 2010 was at 0.67 times.
RAM LAL: CRISIL Assigns 'BB' Rating to INR110MM Cash Credit
-----------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Ram Lal Kamal Raj Jewellers.
Facilities Ratings
---------- -------
INR110.0 Million Cash Credit BB/Stable (Assigned)
INR30.0 Million Letter of Credit P4+(Assigned)
The ratings reflect RLKRJ's small scale of operations in the
intensely competitive and highly fragmented jewellery retail
industry, and its low operating margin, leading to weak debt
protection metrics. These rating weaknesses are partially offset
by RLKRJ's low gearing and its promoters' extensive experience in
the jewellery industry.
Outlook: Stable
CRISIL believes that RLKRJ will benefit over the medium term from
its promoter's industry experience and moderate capital structure.
Its financial risk profile is, however, expected to be constrained
by low profitability and weak debt protection metrics. The
outlook may be revised to 'Positive' in case of substantial
improvement in the firm's profitability, leading to an increase in
cash accruals. Conversely, the outlook may be revised to
'Negative' if the firm suffers losses at the operating level, due
to adverse movements in gold or diamond prices, or if a large,
debt-funded capital expenditure programme impacts its capital
structure.
About Ram Lal Kamal Raj Jewellers
Established as Shree Siddhartha Exports by Mr. Rajesh Saigal in
2000, the firm's name was changed to RLKRJ in June 2010. RLKRJ is
into wholesaling and retailing of designer gold and diamond
jewellery, and operates from its showroom in Khan Market (Delhi).
Retail sales are made under the brand name Kosmiema.
RLKRJ reported a profit after tax of INR4.0 million on net sales
of INR440.7 million for 2009-10 (refers to financial year, April 1
to March 31), against INR2.1 million and INR284.9 million,
respectively, for 2008-09.
RAMA KRISHNA: CARE Assigns 'CARE BB+' Rating to INR4.8cr LT Loan
----------------------------------------------------------------
CARE assigns 'CARE BB+' and 'PR4+' rating to bank facilities Rama
Krishna Knitters Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term Bank Facilities 4.8 'CARE BB+' Assigned
Short-term Bank Facilities 39.0 'PR4+' Assigned
Rating Rationale
The ratings are constrained by the elevated financial risk due to
low profitability margins, high overall gearing and working
capital intensive nature of operations. The ratings of RKKL also
take into consideration risk associated with high customer
concentration, volatility in raw material prices and highly
competitive nature of the industry. These constraints are however
partially offset by management's experience in the field of the
textile industry, proximity of the plant to raw material sources
and current improved outlook for the textile industry.
The ability to improve profitability and effectively manage its
working capital requirement would be the key rating sensitivities.
Rama Krishna Knitters Pvt. Limited incorporated in 2007, was
promoted by Mr Naresh Kumar and his family members. RKKL took
over the businesses of the promoters-owned partnership firms M/s
Shri Ram Knitters and M/s Shri Ram International during FY09.
Both the firms were engaged in the business of manufacturing and
export of readymade garments since 1997 and the same is continued
by RKKL. RKKL is engaged in manufacturing knitted cloth and
knitted readymade garments like t-shirts, shirts and lowers etc.
RKKL's manufacturing facilities are located at Ludhiana (Punjab).
During FY10, RKKL had recorded total operating income of INR108 cr
and PAT of INR2 cr.
SRINIVASA FASHIONS: CRISIL Assigns 'BB-' Rating to INR34MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Srinivasa Fashions Pvt Ltd.
Facilities Ratings
---------- -------
INR34.00 Million Long Term Loan BB-/Stable (Assigned)
INR135.00 Million Packing Credit P4+ (Assigned)
INR135.00 Million Bills Discounting P4+ (Assigned)
INR80.00 Million Letter of Credit P4+ (Assigned)
INR5.00 Million Bank Guarantee P4+ (Assigned)
The ratings reflect SFPL's below-average financial risk profile,
marked by high gearing and large working capital requirements, and
geographical and customer concentration in its revenue profile.
These rating weaknesses are partially offset by SFPL's moderate
operating efficiency and promoters' extensive experience in the
textile industry.
Outlook: Stable
CRISIL believes that SFPL will continue to benefit from its
promoters' industry experience and its established customer
relationships. The outlook may be revised to 'Positive' if SFPL
increases its scale of operations, and improves its capital
structure by improving profitability and working capital
management. Conversely, the outlook may be revised to 'Negative'
if SFPL contracts more-than-expected debt to fund its capital
expenditure programme or working capital requirements, or if its
relationship with its key customer deteriorates, leading to drop
in sales or profitability.
About Srinivasa Fashions
Incorporated in 2005 and promoted by Mr. C V Ravindran and his
wife, Mrs. Vijay Lakshmi Ravindran, SFPL is a Chennai-based
textile company that manufactures readymade garments. The company
has three manufacturing facilities, two in Ambattur (Chennai),
which are in the domestic tariff area, and one in Mahindra City
(Chennai), which is a special economic zone. The company derives
its entire revenues from exports, mainly to France and the US.
SFPL reported a profit after tax (PAT) of INR17.3 million on net
sales of INR608.7 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR20.0 million on net
sales of INR485.3 million for 2008-09.
SURESH ANGADI: Fitch Raises Rating on INR100MM Loans to 'B+(ind)'
-----------------------------------------------------------------
Fitch Ratings upgraded the ratings on India's Suresh Angadi
Education Foundation's INR100 million term loans to 'B+(ind)' from
'B(ind)'. The agency has also assigned SAEF a National Long-term
rating of 'B+(ind)'. The Outlook is Stable.
The upgrade reflects the improvement in admission levels and fee
collections of the Angadi Institute of Technology and Management
(AITM) - the educational institute sponsored by SAEF. The
admission-to-seat ratio for the engineering stream improved to 96%
in 2010-2011 (2009-2010: 84%). The capex plan for setting up
the institute's infrastructure has progressed as per the
implementation schedule with completion expected by March 2011.
The institute started an additional course of Masters in Computer
Applications during 2010-2011 with 100% admissions. The
incremental investment has been minimal, as the existing
infrastructure can be utilized for the course, providing
additional operating inflows. The trust has also been able to
augment operational inflows through an increase in fee levels
and fees for additional services such as special courses,
transportation and lodging.
The ratings continue to be constrained by the short operational
track record of the institute and its stretched leverage levels
during initial years of operation. The completion of the
remaining capex, with maximum levels of admissions and fee income,
will likely improve SAEF's credit metrics from FY12 onwards.
The ratings continue to draw comfort from the demand for
engineering and management education in Belgaum, Karnataka and
nearby locations such as Hubli and Dharwad. AITM is the sixth
engineering and management institute in the Belgaum district.
Achievement of projected levels of fee income and operating
surplus could be positive for SAEF's ratings, whereas delays in
completion of the project, resulting in lesser than the projected
level of fee income and operating surplus, would be considered
negative for its ratings. In addition, a sustained decline in the
company's interest cover to below 2.0x would also pressure its
ratings.
SAEF's is a not for profit trust established in December 2008.
The trust established AITM in Belgaum, Karnataka in 2009 for
running engineering and management courses. The institute has
been operational since August 2009. The institute is affiliated
to the Karnataka Government-sponsored Visvesvaraya Technological
University, and is subject to fee and intake mix regulations,
including reservations applicable to technical colleges in the
state. During FY10, the trust reported fee income collections of
INR14 million, operating surplus of INR2.8 million and deficit
from operations of INR0.5 million.
THERMO CABLES: CRISIL Cuts Rating on INR134.2MM Term Loan to 'BB'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Thermo Cables Ltd to 'BB/Negative' from 'BB+/Stable'; the
rating on the short-term bank facility has been reaffirmed at
'P4+'.
Facilities Ratings
---------- -------
INR200 Million Cash Credit Limits BB/Negative (Downgraded
from BB+/Stable)
INR134.2 Million Term Loan BB/Negative (Downgraded
from BB+/Stable)
INR120 Million Bank Guarantee P4+ (Reaffirmed)
The downgrade reflects significant deterioration in TCL's
liquidity, following losses in 2009-10 (refers to financial year,
April 1 to March 31) and the first half of 2010-11, leading to
negative cash accruals. The losses are a result of low-margin
projects undertaken by the TCL during the slowdown in 2008-09,
high operational expenses, and delay in commencement of operations
of the new plant, because of civic disruptions. Furthermore, TCL
has debt repayment obligations of around INR20 million in 2010-11;
the repayments are being met by infusion from promoters. CRISIL
believes that the TCL's promoters will continue to infuse funds to
ensure timely repayment of its debt obligations.
For arriving at its ratings, CRISIL has combined the financial
risk profiles of TCL, and its associate company, Thermopolymers
Pvt Ltd, together referred to as the Thermo group. This is
because the two entities have significant business and operational
linkages; TPPL derives almost all its revenues from TCL. CRISIL
has not consolidated the other group companies, such as Thermopads
Pvt Ltd and Thermosystems Pvt Ltd (rated BBB-/Stable/P3 by
CRISIL), as there are no significant business or financial
linkages between these companies and the TCL.
Outlook: Negative
CRISIL believes that the TCL's credit risk profile will remain
constrained by its stretched liquidity, on account of losses and
large working capital requirements. The ratings may be downgraded
in case TCL continues to report less-than-expected cash accruals
or if the promoters do not infuse funds to service its debt in a
timely manner. Conversely, the outlook may be revised to 'Stable'
in case TCL's profitability improves significantly, leading to
easing of liquidity pressures and improvement in its debt
protection metrics.
About Thermo Cables
Set up in 1990 by Mr. Nand Kishore Ghurka, TCL began commercial
operations in August 2005. It manufactures a variety of cables,
including instrument signal cables, power and control cables,
flame retardant low smoke cables, and special cables, for
application in high temperatures. The company has manufacturing
facilities in Jeedimetla (Andhra Pradesh). TCL has also set up a
facility in Jadcherla (Andhra Pradesh) at a total capital
expenditure of around INR220 million to manufacture signal cables,
control cables, and power cables. Commercial production at this
facility began in January 2110.
TPPL was set up as a backward integration unit for TCL. It
manufactures polyvinyl chloride compounds, which are key raw
materials for TCL.
TCL posted a net loss of INR19.9 million on net sales of
INR1.06 billion for 2009-10 (refers to financial year, April 1 to
March 31), as against a profit after tax (PAT) of INR44.9 million
on net sales of INR929 million for 2008-09.
TRAVANCORE GOLD: CRISIL Rates INR90 Million Cash Credit at 'BB'
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the cash credit
facility of Travancore Gold India Pvt Ltd, a Malabar group entity.
Facilities Ratings
---------- -------
INR90.00 Million Cash Credit BB/Stable (Assigned)
The rating reflects TGIPL's below-average financial risk profile,
marked by a small net worth and high gearing, and exposure to
risks related to geographic concentration in revenues, volatility
in gold prices, and intense competition in the gold jewellery
segment. These rating weaknesses are partially offset by the
benefits that TGIPL derives as a part of the Malabar group, which
has an established presence in the Kerala gold jewellery market
and an experienced management.
For arriving at its rating, CRISIL has combined the business risk
profiles of TGIPL and the other entities in the Malabar group.
This is because the group entities enjoy business synergies such
as common management, marketing, administration, designing,
procurement, and centralized control. The financials, however, are
independently managed and hence, CRISIL has not combined TGIPL's
financial risk profile with those of the other group companies.
Outlook: Stable
CRISIL believes that TGIPL will benefit over the medium term from
group's established market position. The outlook may be revised to
'Positive' if the company's financial risk profile improves,
supported by growth in revenues and profitability. Conversely, the
outlook may be revised to 'Negative' if TGIPL undertakes a large,
debt-funded capital expenditure programme, thereby deteriorating
its financial risk profile.
About the Group
TGIPL, incorporated in 2009, operates a jewellery showroom in
Trivandrum (Kerala). It is a part of the Kerala-based Malabar
group promoted by Mr. M P Ahammed. The group currently has 45
jewellery showrooms, of which, 33 are in India, and 12 are in the
Middle East. The group consists of around 80 companies, of which,
around 45 are in the jewellery business, and the rest are in the
hospitality, real estate, and media industries.
TGIPL reported a net loss of INR30 million on net sales of
INR25 million in 2009-10 (refers to financial year, April 1 to
March 31), its first year of operations.
=================
I N D O N E S I A
=================
BAKRIE TELECOM: Fitch Assigns 'B' Rating to US$130 Mil. Notes
-------------------------------------------------------------
Fitch assigned an expected 'B' rating and an expected 'RR4'
recovery rating to Bakrie Telecom Pte. Ltd's proposed
US$130 million notes due May 2015. BTPL is a wholly-owned
subsidiary of PT Bakrie Telecom Tbk (BTEL, 'B'/Stable), and the
notes are guaranteed by the latter. The final ratings are
contingent upon receipt of documents conforming to information
already received.
The 2015 Notes are part of BTPL's US$250 million guaranteed senior
notes program, to which the agency assigned a final 'B' rating and
a final 'RR4' Recovery Rating on May 10, 2010. BTEL plans to use
US$130 million from this issue to re-finance US$30 million in bank
loans, US$50 million to repay trade payables, and the remaining
amount to fund capital expenditure as well as for general
corporate purposes.
BTEL is the fifth-largest cellular telecom operator in Indonesia,
with a 5.4% and 31% market share of overall and CDMA subscribers
respectively at end-September 2010. BTEL's ratings are supported
by its ability to generate robust operating cash flows, as well as
by Fitch's expectations of an improvement in EBITDA margins as the
areas outside of Greater Jakarta, West Java and Banten provinces
are forecast to break-even at the EBITDA level in 2012.
During the nine-month period to end-September 2010 (9M10), BTEL
reported flat revenue growth, while EBITDA margins improved to 59%
based on net revenues (9M09: 45%). While BTEL recorded subscriber
growth of 23% yoy, this was offset by a decline in blended average
revenue per minutes (ARPUs) to IDR26,000 at end-September 2010 on
higher competition and lower minutes of usage. The company's
EBITDA margins improved on lower operating losses in non-JBJB
areas and cost efficiencies. BTEL spent IDR1.5 trillion on
capital expenditure during 9M10, slightly lower than the agency's
expectations, and this contributed to a marginal improvement in
net leverage ratio to 3.3x at end-September 2010. During 9M10,
BTEL also launched its Broadband wireless access services under
the 'AHA' brand, which can deliver broadband at a speed of up to
3.1mbps to Indonesian subscribers.
Notably, BTEL recently applied for, and is expected to be awarded
a full mobility license in H111. Fitch anticipates that the
ability to offer nationwide mobility will significantly enhance
BTEL's competitive position. At present, reception of its service
is limited to a subscriber's designated city area.
Fitch has a positive outlook on the Indonesian telecom sector and
believes that actual wireless penetration is considerably lower --
at around 70% -- against headline penetration of 99% at end-
September 2010. This should drive moderate industry subscriber
growth, which coupled with expectations of a benign competitive
environment would prevent any significant decline in average
revenue per minutes and result in mid-to-high single digit
industry revenue growth.
BTEL's ratings are constrained by its position as a sub-scale
operator in a fragmented market, its current inability to generate
sustainable free cash flow, and its moderate-to-high net leverage
of 3.3x. Fitch also notes that BTEL's ratings reflect a one-notch
downgrade on its standalone ratings, based on concerns over the
weak financial and liquidity position of PT Bakrie & Brother Tbk,
which has a 45.58% direct and indirect interest in BTEL.
The agency also notes that the potential merger of PT
Telekomunikasi Indonesia Tbk's (Long-term Issuer Default Rating
(IDR): 'BB+'/Stable) CDMA "Flexi" business and BTEL would be
positive for the latter's ratings, depending on the final terms
and conditions. Following this transaction, the resulting entity
would be almost double its size in terms of subscribers and
revenues, and will command almost 94% of the CDMA subscriber
market and 12.5% of the overall wireless market.
PT FAJAR: Fitch Upgrades Rating on US$100 Mil. Sr. Notes to 'B+'
----------------------------------------------------------------
Fitch Ratings upgraded Indonesia-based PT Fajar Surya Wisesa Tbk's
Long-term foreign currency and local currency Issuer Default
Ratings to 'B+' from 'B'. At the same time, Fitch has upgraded
Fajar's National Long-term rating to 'A(idn)' from 'A-(idn)'. The
Outlooks on these Ratings are Stable. The senior unsecured rating
of Fajar's US$100 million senior notes due in 2011 has also been
upgraded to 'B+' from 'B'; the recovery rating remains at 'RR4'.
The upgrade reflects Fitch's expectation of a continued
improvement in Fajar's credit metrics from FY11 onwards, following
the on schedule completion of its paper machine 5 expansion
supported by healthy domestic demand for containerboard and
boxboard. PM-5 increased Fajar's production capacity by 40% to 1m
metric tonnes per annum in December 2010. However, given the
robust demand for Fajar's products, plant utilisation levels are
not expected to weaken much over the short- to medium-term; the
company has been operating at full capacity in the past few years.
The company's ratings are also supported by its position as one of
the largest non-integrated producers of industrial paper in
Indonesia, its long standing relationships with its main customers
and its low cost production base.
The recovery in domestic demand and international paper prices
since mid 2009 has allowed Fajar to increase its average selling
prices by about 20% compared to FY09. This has consequently
enabled it to increase its EBITDA to IDR520bn in the nine months
to September 2010, an annualized improvement of 22%. Fajar's
financial leverage as measured by net adjusted net debt to EBITDAR
increased to 2.6x at September 2010, due to the IDR564bn of capex
that was mostly spent on the PM-5 expansion in this period.
However, Fitch expects Fajar's leverage to decline starting FY11,
with higher EBITDA generation supported by the new capacity and as
its capital expenditure requirements fall over the medium-term.
Fajar's liquidity remains adequate. It had undrawn credit
facilities of about IDR1,800 billion which is sufficient to cover
its short term debt maturities of IDR260 billion up to September
2011 and the USD notes due in October 2011. In addition, it had
cash reserves of IDR89 billion at September 2010.
The Stable Outlook reflect Fitch's expectation that Fajar's net
adjusted debt to EBITDAR would remain below 2.5x and EBITDA to
gross interest expense would remain above 3.0x from FY11 onwards.
However, a sustained increase in Fajar's leverage above 3.5x or
EBITDA to interest weakening below 3.0x can result in a negative
rating action. A positive rating action on its National Long-term
rating can be taken if the company maintains its leverage below
2.0x, along with positive free cash flow generation. Further
positive rating actions on Fajar's IDRs are not anticipated in the
short- to medium-term, given its limited scale and its position as
a price taker for both end products and raw materials.
=========
K O R E A
=========
KOREA LINE: STX Offshore Sees Little Impact From Receivership
-------------------------------------------------------------
Seonjin Cha at Bloomberg News repots that STX Offshore &
Shipbuilding Co. said it didn't expect any impact from Korea Line
Co.'s application for receivership.
Bloomberg, citing STX's e-mailed statement, relates that while STX
had orders to build two vessels for Korea Line, construction had
not begun.
STX Offshore & Shipbuilding is a South Korean shipbuilding
company.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 26, 2011, Bloomberg News said Korea Line Corp. filed for
receivership after rates tumbled to the lowest in almost
two years because of a global oversupply of vessels. The filing
was made at the Seoul Central District Court on Jan. 25, 2011.
Bloomberg noted that the shipping line, unprofitable in six of the
past seven quarters, halted its shares as it works to restructure
debt. Bloomberg related that dry-bulk rates have plunged 58% in
the past year amid an expanding global fleet and slowing demand
for commodities in China because of government efforts to cool
economic growth.
The company had total debts of KRW2.23 trillion (US$2 billion) at
the end of September, according to its third-quarter financial
statement, Bloomberg said. The shipping line made a KRW104.2
billion loss in the quarter, the statement added.
Headquartered in South Korea, Korea Line Corp. is an operator of
dry-bulk ships. Korea Line operated 51 vessels at the end of
September. It ships iron ore, coal and liquefied-natural gas for
customers including Posco, Korea Electric Power Corp. and Korea
Gas Corp., according to its Web site.
KOREA LINE: Excel Maritime Says it Has No Exposure to Firm
----------------------------------------------------------
Excel Maritime Carriers Ltd. said that it does not have any
business relations or financial exposure to Korea Line Corp.
As reported in the Troubled Company Reporter-Asia Pacific on
January 26, 2011, Bloomberg News said that Korea Line Corp. filed
for receivership after rates tumbled to the lowest in almost two
years because of a global oversupply of vessels. The filing was
made at the Seoul Central District Court on January 25, 2011, the
company said in a regulatory statement obtained by the news
agency.
About Excel Maritime
Excel is an owner and operator of dry bulk carriers and a provider
of worldwide seaborne transportation services for dry bulk
cargoes, such as iron ore, coal and grains, as well as bauxite,
fertilizers and steel products.
About Korea Line
Headquartered in South Korea, Korea Line Corp. is an operator of
dry-bulk ships. Korea Line operated 51 vessels at the end of
September. It ships iron ore, coal and liquefied-natural gas for
customers including Posco, Korea Electric Power Corp. and Korea
Gas Corp., according to its Web site.
===============
M A L A Y S I A
===============
SOUTHERN CEMENT: Placed in Members' Voluntary Liquidation
---------------------------------------------------------
Lafarge Malayan Cement Berhad said that Southern Cement Industries
Sdn Bhd, a wholly owned subsidiary of the Company, had at their
extraordinary general meeting held on January 24, 2011, obtained
the approval of its shareholders for a member's voluntary
liquidation. Mr. Ling Sie Kiong was appointed as the Liquidator
of Southern Cement Industries Sdn Bhd.
====================
N E W Z E A L A N D
====================
SOUTH CANTERBURY: Helicopter NZ Assets Get Strong Interest
----------------------------------------------------------
Andrea Fox at The Dominion Post reports that strong bidding
interest from overseas and New Zealand for South Canterbury
Finance asset Helicopters NZ has receiver Kerryn Downey optimistic
of a NZ$90 million-plus sale within three months.
The Post notes that indicative bids for the Nelson company, up for
sale as part of SCF's receivership process, closed last week.
According to the Post, Mr. Downey of McGrathNicol said several
bids had come in from local and overseas parties, including
New Zealand and international helicopter operators, and he was
expecting a report from Goldman Sachs, which is helping with the
sale, early this week.
Helicopters NZ was ascribed a face value of NZ$90.3 million last
year when it was transferred to SCF from the Allan Hubbard-
controlled Southbury Corporation, the Post discloses.
"I am reasonably certain that number, if not higher, will be the
sale price," the Post quoted Mr. Downey as saying. "I am very
upbeat about Helicopters. Its operating performance is ahead of
budget which is extremely encouraging."
Mr. Downey hoped to conclude the sale by March or April, the Post
adds.
Meanwhile, the Dominion Post reports that indicative bids for
SCF's 80% shareholding in another valuable asset, Scales
Corporation, closed on January 28.
The Post notes that the company, which has cold store, petfood,
property, bulk storage and shipping operations, and is the
country's biggest apple grower, is itself not for sale -- only the
80% shareholding.
The Post says Mr. Downey is also expecting a hotly contested sale
for this stake in the business.
"It is a very highly performing business with rock solid
profitability. There is significant interest. The competitiveness
of the process and the level of interest suggest high values
there," Mr. Downey said, according to the Post.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance.
On August 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under heightened
surveillance since 2008. As part of that, SCF was granted a
Trustee waiver in February 2010 to allow it time to recapitalize.
Unfortunately, the Company's Directors have advised us that they
have not been successful with respect to a recapitalization and
requested us to appoint a receiver. At this point we, as Trustee,
agree that it is the best interests of debenture, deposit and bond
holders to do that," said Yogesh Mody, Southern Regional Manager
for Trustees Executors Limited.
The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.
YELLOW PAGES: Bankers Write Off NZ$1.05 Billion of Debt
-------------------------------------------------------
The New Zealand Press Association reports that Yellow Pages Group
said its bankers have written off NZ$1.05 billion of debt as part
of a restructuring.
According to NZPA, the group's senior lenders have now taken
ownership of the company to carry out a restructuring. The
trading businesses will be sold into a new corporate framework
with new debt facilities, NZPA notes.
NZPA relates that a total of NZ$1.05 billion of debt has been
written off, allowing the new entity to operate on a sound
commercial basis. After the restructure, the company has a
capital value of NZ$750 million, NZPA adds.
"The new capital structure means we can move forward with optimism
and focus on enhancing the value of our brands through further
investment and operational efficiencies," NZPA quoted Andrew Day,
who takes up the role of chairman, as saying. Mr. Day is a former
chief executive of Telstra's yellow and white pages division,
Sensis.
NZPA discloses that a new board will consist of former MediaWorks
boss, Brent Impey, and Liz Coutts and Scott Pomeroy from Colorado,
and Paul Wilson of Sydney.
Yellow Pages last year breached its banking covenants and the
restructuring on Wednesday has been a source of media speculation,
NZPA adds.
NZPA says the directories company was sold by Telecom to a private
equity consortium for NZ$2.2 billion in 2007. The private equity
consortium that purchased the business in 2007 comprised CCMP
Capital and Teachers' Private Capital, the private investment arm
of the Ontario Teachers' Pension Plan.
About Yellow Pages
Yellow Pages Group -- http://www.yellowpagesgroup.co.nz/-- was
formed in 1988 and publishes the print, online and mobile
directories for Yellow, as well as the White pages(R) and the
Local directoryTM. Yellow Pages owns the 018(R) directory
assistance service, a majority stake in 50s-plus website
grownups.co.nz, and publishes the Retirement guideTM and New
Zealand tourism guideTM, an award-winning online tourism
directory.
* NZ Businesses' Cashflow Remains Under Pressure, D&B Says
----------------------------------------------------------
NZ Herald Online reports that credit bureau Dun & Bradstreet said
the cashflow of New Zealand businesses is expected to remain under
pressure during 2011, as an increasing number of firms fail to pay
their bills.
The Herald Online says the research from Dun & Bradstreet revealed
that businesses took longer to pay each other during the December
quarter, while the number of firms with outstanding debts also
increased.
An additional 4% of New Zealand firms failed to pay their trade
credit accounts during the December quarter 2010 when compared to
the previous year, the Herald Online relates.
According to the Herald Online, the findings coincide with figures
which reveal the time businesses are taking to pay each other has
also risen -- New Zealand firms took 43.9 days to settle their
trade accounts during the December quarter, a figure which remains
two weeks above the standard 30 day payment term.
The Herald Online relates Dun & Bradstreet's New Zealand general
manager John Scott said the trend by businesses to delay bill
payments had the potential to inflict cashflow difficulties on a
large number of firms.
"This is worrying as it can draw more and more businesses into the
late payment cycle, making it increasingly difficult for firms to
escape the pressures associated with slow paying customers," the
Herald Online quoted Mr. Scott as saying.
"In addition, the time businesses are taking to pay each other has
also increased, which means firms are being denied access to their
cash for longer. "For small firms in particular, this type of
delay in receiving payment for products or services could push a
business into severe financial stress," Mr. Scott said.
===========
T A I W A N
===========
TAISHIN BILLS: Fitch Upgrades Individual Rating to 'C'
------------------------------------------------------
Fitch Ratings upgraded most of Taiwan-based Taishin Bills Finance
Corporation's ratings. Also, the agency has removed the Rating
Watch status placed on the ratings on October 20, 2010, and
December 15, 2010, and simultaneously withdrawn all the ratings.
These rating actions follow the completion on January 22, 2011, of
Taishin Financial Holdings Company's in-group merger of TBF into
Taishin International Bank; the withdrawal of TBF's ratings is a
result of the group's reorganisation. Fitch will no longer
provide ratings or analytical coverage of the company.
Here is a detailed list of the rating actions.
Taishin Bills Finance Corporation (TBF):
-- Long-term foreign currency Issuer Default Rating (IDR)
upgraded to 'BBB+' from 'BBB-'; off Rating Watch Positive
(RWP); assigned Stable Outlook; rating withdrawn;
-- Short-term foreign currency IDR upgraded to 'F2' from 'F3';
off RWP; rating withdrawn;
-- National Long-term rating upgraded to 'AA-(twn)' from
'A(twn)'; off RWP; assigned Stable Outlook; rating withdrawn;
-- National Short-term rating upgraded to 'F1+(twn)' from
'F1(twn)'; off RWP; rating withdrawn;
-- Individual rating upgraded to 'C' from 'C/D'; off RWP; rating
withdrawn; and
-- Support rating downgraded to '3' from '2'; off Rating Watch
Negative; rating withdrawn.
=============
V I E T N A M
=============
SAIGON THUONG: Fitch Downgrades Individual Rating to 'D/E'
----------------------------------------------------------
Fitch Ratings downgraded Vietnam's Saigon Thuong Tin Commercial
Joint Stock Bank's Individual Rating to 'D/E' from 'D', and
removed it from Rating Watch Negative. Fitch has also affirmed
Sacombank's Support Rating at '5'.
The downgrade of the Individual Rating reflects the weakening of
Sacombank's liquidity and underlying loan quality arising from the
bank's excessive loan growth to gain market share. Also, Fitch
expects Sacombank, along with other Vietnamese banks, to face a
more challenging domestic operating environment, particularly
given the increasing inflationary pressure in Vietnam and the
Vietnamese government's weak ability and inconsistent policies to
manage/control volatile economic/market conditions. The agency
notes that the bank's balance sheet strength is moderate by
international standards, despite recapitalization in Q310.
The affirmation of Sacombank's Support Rating takes into
consideration Fitch's continued belief that Sovereign support for
the bank cannot be relied on, given its status as a private bank
and the sovereign's own modest fiscal position.
Sacombank's liquidity has weakened, as a result of continued
excessive loan growth of 32% yoy in 2010, and 70% in 2009. As
such, the bank's loan-to-customer deposit ratio deteriorated to
90% at end-H110, although the bank was in compliance with the
regulatory loan-to-deposit ratio of 74%. Also, Fitch is of the
view that increasing inflationary pressure would lead to the
bank's liquidity further tightening, with borrowers subsequently
facing difficulty financing at a reasonable cost, which in turn
could incur high credit costs.
Fitch notes that Sacombank's underlying loan quality has weakened,
due to continued excessive loan growth and more challenging
operating environment, although it would compare favourably with
local peers. While the bank's reported NPL ratio was low at 0.69%
at mid-2010, Fitch believes the bank's loan quality would be much
weaker if classified under international standards.
Fitch believes that Sacombank's current capital, together with a
reasonably good margin of around 3% would be neither sufficient to
adequately cushion against substantial credit costs nor support
further excessive loan growth, even after earnings retention.
This is despite the bank's capital adequacy ratio, under more
lenient VAS, having improved to 12% at end-September 2010 from
9.4% at mid-2010 following the issuance of new shares, and
earnings retention.
Also, it remains to be seen whether the bank will be able to raise
additional capital on a pre-emptive basis to withstand a subdued
operating environment. Fitch expects Sacombank's profitability to
remain under pressure given the competition for deposits which
would limit the bank to pass higher funding costs on to borrowers,
despite the removal of lending rate caps in H110, and with the
threat of potentially high credit costs.
Downgrade triggers include substantial deterioration in
capitalisation, arising from excessive loan growth and high credit
costs, and a notable weakening of liquidity. Upside potential for
the Individual Rating, although Fitch notes this as unlikely in
the near future, includes a substantial and sustainable
improvement in Sacombank's underlying quality, and/or overall
liquidity profile, as well as more stability in the operating
environment.
Sacombank is a major private bank in Vietnam with an approximately
3% share of system-wide assets at end-2009. The bank is 29%-held
by foreigners.
VIETNAM BANK: Fitch Affirms Individual Rating at 'D/E'
------------------------------------------------------
Fitch Ratings affirmed Vietnam Joint-Stock Commercial Bank for
Industry and Trade's Individual Rating at 'D/E'. Also, the agency
has affirmed Vietinbank's Support rating at '4'.
The affirmation reflects Fitch's concerns about Vietinbank's weak
underlying loan quality and liquidity arising from excessively
strong loan growth, and the bank's still weak capitalisation.
Also, Fitch expects Vietinbank, along with other Vietnamese banks,
to face a more challenging operating environment, particularly
given the increasing inflationary pressure in Vietnam and the
Vietnamese government's ('B+'/Stable) The affirmation of the
support rating factors in the agency's view that external support
is limited as the government may not have sufficient resources to
offer aid when required.
Vietinbank's underlying loan quality remains weak, given the
bank's excessive loan growth and more difficult operating
environment. Based on International Financial Reporting Standards,
non-performing loans and special mention loans were 6.2% and 11.2%
of total loans at end-2009 respectively; although the bank
reported a low NPL ratio of 1.1% and a SML ratio of 2.0% at mid-
2010 under the generous overdue-based Vietnamese Accounting
Standards. Fitch sees an increasing possibility of the bank's
SMLs migrating to NPLs over the next 1-2 years, given borrowers'
weakening ability to finance, due to the tightening liquidity in
the local market, and the bank's modest exposure to the troubled
Vietnam Shipbuilding Industry Group.
Fitch considers the bank's capital weak, despite some
recapitalization through the issuance of new shares to its
existing shareholders in H210, and sale of new shares to the
International Finance Cooperation, which are reportedly to be
completed in January 2011. While Fitch estimates Vietinbank's
capital adequacy ratio to increase to around 10% under VAS by end-
January 2011 from 8.86% at end-October 2010, it believes the
bank's capital would be neither sufficient to adequately cushion
against higher credit costs nor support further excessive loan
growth even after earnings retention. Furthermore, Fitch believes
Vietinbank's core capital under VAS is largely overstated compared
with that under IFRS, given the bank's insufficient provisions
under IFRS. Meanwhile, Fitch expects the bank's profit to remain
under pressure in 2011, although the agency estimates the bank to
post a return on average assets of around 1.2% in 2010 under VAS.
The bank's liquidity is weak, evidenced by a high loan-to-customer
deposit ratio of 120% at mid-2010. Fitch is concerned in
particular about the bank's exceptionally high growth in foreign
currency loans, given the vulnerability of the bank's liquidity to
the increasing inflationary pressure in Vietnam and weakening
market confidence in the Vietnamese dong. This is in spite of the
fact that the bank is better positioned to attract deposits
compared to smaller banks, given its strong franchise as one of
the four major state-owned banks.
Fitch would consider downgrading Vietinbank's Individual Rating in
the event of substantial deterioration in capitalization arising
from further excessive loan growth and high credit costs, and
notable weakening of liquidity. On the other hand, the bank's
rating could be upgraded should there be a substantial and
sustainable improvement to its capitalization, underlying loan
quality, and liquidity position, although such improvements would
be unlikely over the near to medium term.
Established in 1988 after being separated from the State Bank of
Vietnam, Vietinbank changed its legal form to a joint stock
commercial bank from a state-owned commercial bank on July 2009
after partial privatization. The bank is the third-largest lender
with a 8% market share of system assets at end-2009. It is 89%
owned by the government at mid-2010.
*********
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 2011. 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.
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