/raid1/www/Hosts/bankrupt/TCRAP_Public/110518.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, May 18, 2011, Vol. 14, No. 97
Headlines
A U S T R A L I A
FAIRFAX MEDIA: Puts All Radio Assets Up for Sale
PONSONBY MALL: Receivers Put Soho Square Back on Market
* AUSTRALIA: Greg Lewis Joins Middletons as Special Counsel
C H I N A
CITIC RESOURCES: Moody's Changes Outlook to Stable From Negative
FOSUN INTERNATIONAL: Moody's Assigns Definitive 'Ba2' Bond Rating
LONKING HOLDINGS: Moody's Gives First-Time (P)Ba3 Corp. Rating
LONKING HOLDINGS: S&P Assigns 'BB' Corporate Credit Rating
H O N G K O N G
EVERSTEP LIMITED: Members' Final Meeting Set for June 16
FAR EAST REFRIGERATION: Creditors' Proofs of Debt Due June 13
G-CHANNELS LIMITED: Creditors' Proofs of Debt Due June 14
GAMEONE ONLINE: Creditors' Proofs of Debt Due June 14
GC STRUCTURED: Middleton and Chan Appointed as Liquidators
HOTUNG ENERPRISES: Briscoe and Wong Step Down as Liquidators
INNOVAGE HK: Corkhill and Bruce Appointed as Liquidators
INTEGRATED DEVICE: Seng and Lo Step Down as Liquidators
K-POWER EDUCATION: Members' Final General Meeting Set for June 14
NUMBER ONE: Seng and Lo Step Down as Liquidators
ORIGINAL MARK: Placed Under Voluntary Wind-Up Proceedings
I N D I A
A G AEROVISION: ICRA Cuts Rating on INR45.46cr Bank Loan to 'LB'
ADINATH RE-ROLLING: ICRA Suspends 'LBB+' Rating on INR30cr Loan
BALAJI FIBER: CRISIL Assigns 'BB' Rating to INR37.7MM Term Loan
DURGA CONSTRUCTION: ICRA Assigns 'LBB' Rating to INR7cr LT Limits
HARIHAR ROCKS: ICRA Assigns 'LC' Rating to INR8cr Term Loan
HOME LAND: ICRA Suspends 'LB' Rating on INR14cr Bank Facilities
INTERNATIONAL CYLINDERS: CRISIL Rates INR60MM Cash Credit at 'BB+'
J.J. GOLD: CRISIL Cuts Rating on INR100MM Bank Guarantee to 'P4+'
KARNATAKA HANDLOOM: ICRA Reaffirms 'LBB+' Rating on INR27cr Loan
KMB TRADING: CRISIL Assigns 'B' Rating to INR162.1MM LT Loan
MARCK BIOSCIENCES: CRISIL Reaffirms 'D' Rating on INR598.2MM Loan
PANCHAVATI POLYFIBRES: ICRA Assigns 'LBB' Rating to INR15.3cr Loan
RELIABLE AUTOTECH: CRISIL Upgrades Rating on INR410MM Loan to 'B'
SAM APPARELS: ICRA Cuts Rating on INR14.25cr Term Loan to 'LC'
SIRICON PROJECTS: CRISIL Places 'B-' Rating on INR70MM Cash Credit
SRI LANGTA BABA: CRISIL Assigns 'D' Rating to INR93MM LT Loan
TIRUPATI CYLINDERS: CRISIL Puts 'BB+' Rating on INR80M Cash Credit
TM TYRES: CRISIL Cuts Rating on INR20MM Corp. Term Loan to 'BB'
UNISTAR DISTRIBUTORS: ICRA Rates INR2.6cr Bank Limits at 'LBB-'
VERMONT PROJECTS: CRISIL Reaffirms INR200MM Cash Credit at 'B'
I N D O N E S I A
GARUDA INDONESIA: Swings to IDR183.56 Billion Net Loss in Q1
J A P A N
SHINSEI BANK: Swings to JPY42.65 Billion Profit in FY2010
TOKYO ELECTRIC: Said to Book More Than JPY800BB Net Loss in FY2010
TOKYO ELECTRIC: Government Urges Lenders to Share Burden
N E W Z E A L A N D
PIKE RIVER: Former Managers Hire Defense Lawyers
REDGROUP RETAIL: Sale of Whitcoulls & Borders Stores Close
P H I L I P P I N E S
BANCO FILIPINO: PDCI to Start Paying Depositors Next Month
T A I W A N
KGI SECURITIES CO: Fitch Withdraws Individual 'C' Rating
T H A I L A N D
CIMB THAI BANK: Fitch Affirms Individual Rating at 'D'
V I E T N A M
HOANG ANH: Fitch Assigns Final LT 'B' Rating to US$90MM Sr. Notes
X X X X X X X X
* S&P's Global Corporate Defaults List Has 15 So Far
* Upcoming Meetings, Conferences and Seminars
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A U S T R A L I A
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FAIRFAX MEDIA: Puts All Radio Assets Up for Sale
------------------------------------------------
Herald Sun reports that Fairfax Media has put all its radio
stations, including 3AW and 2UE, up for sale to recoup what some
analysts have estimated could be up to AU$250 million.
According to Herald Sun, chief executive Greg Hywood said the
group had received strong expressions of interest for the assets
and had appointed financial advisers KPMG to help with the sale.
"The decision to consider the divestment of Fairfax Radio . . . is
part of our ongoing review of opportunities to maximize
shareholder value and the mix of assets we own," Herald Sun quotes
Mr. Hywood said. "We are positioning Fairfax Media for long-term
growth and continuing with the implementation of Fairfax Media's
strategic plan."
Herald Sun relates that Mr. Hywood said the company would continue
executing its plan throughout next year in a bid to reshape its
portfolio and pay down debt.
NZ Job Cuts
NZ Herald Online, citing a report in The Australian newspaper,
says Fairfax is preparing to shed about 100 jobs from its New
Zealand operation.
NZ Herald Online relates that the news comes just days after
Fairfax said its second half revenue was down by 4.5% and that it
did not expect market conditions to improve enough to recover the
decline before the end of the financial year.
The company earlier this month announced the outsourcing of key
Australian sub-editing operations, with the loss of an unspecified
number of staff, NZ Herald Online reports.
The "streamlined production processes" in the company's Australian
and New Zealand publishing, printing and distribution businesses
were aimed at reducing costs and "allowing reinvestment in quality
journalism", the company said at the time.
The Australian said 350 jobs will be cut from the company
including 250 printing and production jobs.
About 100 of the planned redundancies would be in Fairfax's New
Zealand operations, indicating a further 160 or so jobs would be
lost in Australia, including from its regional pre-press centres
and national printing, distribution and advertising operations,
The Australian said.
About Fairfax Media
Headquartered in Sydney, Australia, Fairfax Media Limited
(ASX:FXJ) -- http://www.fxj.com.au/-- is engaged in publishing of
news, information and entertainment; advertising sales in
newspaper, magazine and online formats; radio broadcasting, and
film and television production and distribution. In Australia,
the company's mastheads include The Sydney Morning Herald, The
Age, BRW, The Sun-Herald and The Land. Its New Zealand mastheads
include The Dominion Post, The Press and Cuisine. Fairfax Media
online businesses include Fairfax Digital in Australia (including
the news sites, smh.com.au and theage.com.au, and classified and
transaction Websites), and Trade Me and stuff.co.nz in
New Zealand. On November 9, 2007, it acquired the former Southern
Cross Broadcasting's radio business, (including metropolitan
stations 2UE in Sydney, 3AW and Magic 1278 in Melbourne, 4BC and
4BH in Brisbane, and 6PR and 96FM in Perth), the Southern Star
television production and distribution business, Satellite Music
Australia and associated businesses from Macquarie Media Group.
* * *
The Troubled Company Reporter-Asia Pacific reported on May 6,
2011, Standard & Poor's Ratings Services affirmed its 'BB+' long-
term corporate credit and related debt ratings on Australian-based
media company Fairfax Media Ltd. "At the same time, we revised
the outlook on the long-term rating to stable from positive," S&P
said.
"The outlook revision reflects our growing concerns regarding the
volatility of the group's earnings, and the rate of structural
revenue erosion present in the group's businesses, particularly
from its metropolitan newspaper businesses," said credit analyst
Paul Draffin.
PONSONBY MALL: Receivers Put Soho Square Back on Market
-------------------------------------------------------
Susie Nordqvist and Anne Gibson at The New Zealand Herald report
that the Soho Square development site in Ponsonby, Auckland, is
back on the market.
The Herald relates that receiver Grant Thornton said the landmark
Ponsonby site would be offered to the market in a campaign headed
by Ray White's Bruce Whillans.
Soho Square developer Layne Kells' company Ponsonby Mall Trust
went into receivership at the end of 2009, owing the funders
Fortress Credit Corp. NZ$24 million and Strategic Finance
NZ$50 million, the Herald discloses.
According to the report, Grant Thorton's Tim Downes said that the
receivers' focus on the property since appointment had been on
adding value via improving the permissible development on the
site. This was achieved in March this year when resource consent
was granted for a mixed use development of 45,348sqm on the site,
versus the previous consent of 32,286sqm when the site was offered
to the market in early 2010.
Mr. Downes, as cited by the Herald, said this had created a
significant building envelope which could now be fine-tuned by the
ultimate developer of the site.
Renewed interest in the site from a number of developers had
encouraged the receivers to launch another marketing campaign,
with a specifically selected list of potential purchasers,
Mr. said. "Letters seeking offers from these particular parties
have been sent out in the last day or so."
* AUSTRALIA: Greg Lewis Joins Middletons as Special Counsel
-----------------------------------------------------------
The Australian reports that Middletons has poached insolvency
specialist Greg Lewis from Mallesons Stephen Jaques and appointed
him special counsel.
According to The Australian, Mr. Lewis has more than two decades
experience in commercial disputes and Middletons national managing
partner Nick Nichola said the firm was delighted he had decided to
join.
The Australian relates that Mr. Lewis will work in the insolvency
practice, offering clients expertise in commercial litigation,
insolvency and banking litigation.
Middletons commercial litigation practice head Tim Webster said
Mr. Lewis had a reputation. "Greg is one of the country's pre-
eminent insolvency and restructuring lawyers and is a welcome
addition to our growing practice," he said.
Some of Lewis's previous work includes heading a team that worked
on distressed commercial loans for National Australia Bank and
acting on the appointment of a receiver to Equiticorp Financial
Services, The Australian reports.
Middletons is an Australian full service commercial law firm.
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C H I N A
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CITIC RESOURCES: Moody's Changes Outlook to Stable From Negative
----------------------------------------------------------------
Moody's Investors Service has changed to stable from negative its
outlook for CITIC Resources Holdings Limited's Ba3 corporate
family rating and its Ba3 rating on the USD1 billion 7-year senior
notes issued by CITIC Resources Finance (2007) Limited and
guaranteed by CITIC Resources.
The outlook change follows CITIC Resources' recent announcement of
a rights issue to raise around HKD2.5 billion new equity.
The company's major shareholders, CITIC Group (Baa2/stable, 54.01%
of total shares) and Temasek Holdings (Aaa/stable, 11.47%), have
irrevocably undertaken to subscribe for their respective
entitlements of rights shares. All the remaining rights shares
will be fully underwritten by CITIC Group through its wholly owned
subsidiary, Keentech Group Limited.
"In Moody's view, the rights issue will strengthen the company's
financial flexibility and liquidity profile, and alleviate Moody's
concern on any potential breach of an interest coverage covenant
in its syndicated loan facility in 2011 which had USD210 million
outstanding at the end of 2010, " says Kai Hu, a Moody's Vice
President and Senior Analyst.
Moody's expects that there is a high likelihood that CITIC
Resources will get a waiver from the syndicated loan bank group,
led by Mizuho Corporate Bank and China Development Bank, in view
of CITIC Resources' better than expected earnings in 2010, its
strengthened capital base after the rights issue, and the waiver
it obtained from the bank group in 2009.
CITIC Resources' Ba3 rating incorporates: 1) a standalone rating
of B2, which reflects its small scale, sizable capital spending
and high exposure to volatile commodity prices; 2) a two-notch
uplift based on the expectation of support from its major
shareholder, CITIC Group.
In Moody's opinion, the association with CITIC Group also
strengthens the company's access to the banking and debt markets.
Moody's expects that CITIC Resources will maintain adjusted
debt/EBITDA at 3-4x, RCF/adjusted debt at 10%-15%, and adjusted
debt/capital ratio at 45%-50% over the next 12-18 months, assuming
steady oil production volume from the Karazhanbas oilfield, the
gradual rampup of the Yuedong oilfield, and stable commodities
prices.
CITIC Resources also has sufficient liquidity resources to fund
its capex and debt repayments in 2011.
The rating may be upgraded if CITIC Resources 1) shows consistent
progress in its recovery enhancement program and reserve
replacements; 2) materially improves its oil production through a
successful ramp up of Yuedong oilfield; and 3) de-leverages,
through continued commercialization of its proved reserves.
The financial metrics that Moody's would consider include a
sustained RCF/adjusted debt of over 20%.
The rating would be downgraded if the company's underlying credit
strength weakened -- for example, if 1) the company failed to ramp
up its production; 2) the commodity market fundamentals weakened;
or 3) the company made aggressive acquisitions.
Indicators that Moody's would consider for a downgrade include
RCF/adjusted debt consistently below 10% and debt/capitalization
above 55%. An erosion of liquidity at the holding company level
would also be negative for the rating.
Any weakening in the relationship with CITIC Group -- thereby
lowering the support level -- will be negative for the rating.
Should there be a downgrade to CITIC Group's rating, the company's
support level, and hence the rating uplift for CITIC Resources,
would also be revisited.
The principal methodology used in this rating was Moody's "Global
Independent Exploration and Production (E&P) Industry published in
December 2008.
CITIC Resources is a energy and natural resources investment
holding company, with interests in aluminum smelting, coal, ,
import and export of commodities and the exploration, development
and production of oil. The company serves as the principal natural
resources and energy arm of its parent, CITIC Group.
FOSUN INTERNATIONAL: Moody's Assigns Definitive 'Ba2' Bond Rating
-----------------------------------------------------------------
Moody's Investors Service has assigned definitive Ba2 senior
unsecured bond rating to the US$300 million 7.5% notes due 2016
issued by Fosun International Limited.
Ratings Rationale
Moody's definitive rating on this debt obligation confirms the
provisional rating assigned on April 26, 2011. Moody's rating
rationale was set out in a press release and explored more fully
in a Credit Opinion published on the same day.
The bond proceeds will be used for debt refinancing and other
general corporate purposes.
Fosun's ratings were assigned by evaluating factors that Moody's
considers relevant to the credit profile of the issuer, such as
the company's (i) business risk and competitive position compared
with others within the industry; (ii) capital structure and
financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside Fosun's core industry and
believes Fosun's ratings are comparable to those of other issuers
with similar credit risk.
Fosun's history dates back to 1992, as a market survey company
founded by four young entrepreneurial university graduates. It is
now engaged in steel, property, pharmaceutical, mining and retail
in China. It also has significant investments in China and
overseas.
Fosun International Ltd became the holding company of the group in
2005. Headquartered in Shanghai, it was listed on the Hong Kong
Stock Exchange in 2007. The group is ultimately 58%-owned by Mr.
Guangchang Guo, Chairman. He and three other founders own 78% of
the company.
LONKING HOLDINGS: Moody's Gives First-Time (P)Ba3 Corp. Rating
--------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba3
corporate family rating to Lonking Holdings Limited. Moody's has
also assigned a provisional (P)Ba3 rating to Lonking's proposed
senior unsecured USD bonds. The outlook for both ratings is
stable.
This is the first time that Moody's has assigned ratings to
Lonking.
Moody's will remove the provisional status of the corporate family
rating and bond rating once Lonking completes its bond issuance on
satisfactory terms and conditions.
Lonking will use the bond proceeds for refinancing debt, capital
investments, and general corporate purposes.
Ratings Rationale
"The Ba3 rating reflects Lonking's well-established market
position in the heavy manufacturing industry in China," says
Jiming Zou, a Moody's analyst.
"In the foreseeable future, the company could maintain this
leading market share in the wheel loader niche market -- a major
product accounting for 69% of its revenue in 2010," he adds.
The rating also considers the robust demand for construction
machinery in China due to sizable infrastructure projects in both
the public and private sectors, and which will support Lonking's
business growth.
"In addition, the company's well-established sales network
throughout China -- which comprises over 1,000 sales locations --
provides good access to customers and better post-sales repair and
maintenance services compared to the competition," says Zou.
The rating also recognizes Lonking's moderate credit metrics --
adjusted Debt/EBITDA at 2.5-3.0x and EBITDA margin at around 20%
over the next two to three years -- which position the company in
the Ba category.
Counterbalancing these credit strengths are a number of credit
challenges:
The heavy manufacturing industry is highly exposed to industry
cyclicality from the construction and mining activities. However,
expected strong economic growth and infrastructure investment in
China could partly mitigate this concern.
Lonking's current revenue is concentrated in one single product --
wheel loaders, accounting for around 69% of its revenue in 2010.
Low entry barriers to production of wheel loaders expose the
company to a potential squeeze in profit margins.
Lonking has entered into a new product -- excavators, which could
present execution risk especially as it has set a high sales
target for the next 2 years.
Furthermore, Lonking has higher working capital requirements for
taking lease receivable arising from sales under finance leasing.
Even when such sales are transferred to third-party financial
institutions, the company is liable for such receivables risk
through the provision of its guarantees.
With the issue of the proposed USD notes, Moody's expects the
company's liquidity will improve and become less reliant on
onshore bank borrowings.
The outlook for the ratings is stable, reflecting Moody's
expectation that Lonking is able to increase sales in excavators
and reduce lease receivable on its book, while maintaining its
wheel loader niche market position.
Rating upgrade pressure could emerge, if the Lonking (1) reduces
its reliance on the sale of wheel loaders through success in its
sales on excavators; (2) maintains an EBITDA margin close to 20%;
(2) maintains good financial leverage with a Debt/EBITDA level
below 2.0x, (3) maintains a substantial level of cash as a cushion
against industry cyclicality, while limiting cash needs for
finance leases and control over customer credit risks.
On the other hand, downward rating pressure could be triggered by
(1) a material loss in Lonking's market share in its core wheel
loader market, (2) a decline in the company's sales and/or
profitability due to an adverse change in the local operating
environment, (3) aggressive expansion, driven by debt-funded
capital expenditure, or working capital consumption, or (4) a
deterioration in its liquidity position.
Indicators for a rating downgrade are a deterioration in EBITDA
margin below 15%, a Debt/EBITDA ratio above 3.5x, or an annual
operating cash flow -- after working capital -- of less than RMB1
billion.
The principal methodology used in rating Lonking was the "Global
Heavy Manufacturing Industry" published in Nov 2009.
Lonking Holdings Limited is one of the leading manufacturers of
construction machinery in China focusing mainly on the production
of wheel loaders, excavators, road rollers and forklifts. The
revenue from wheel loaders accounted for 69% of its total revenue
in 2010. Lonking is also one of the top four suppliers of wheel
loaders in China. Listed on the Hong Kong Stock Exchange in 2005,
Lonking is 55.08% controlled by founder and chairman, Li Xin Yan,
and his wife.
LONKING HOLDINGS: S&P Assigns 'BB' Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' long-term
corporate credit rating to Lonking Holdings Ltd. The outlook is
stable.
At the same time, Standard & Poor's assigned its 'BB' issue rating
to the company's proposed issue of up to US$400 million in senior
unsecured notes due 2016. Standard & Poor's also assigned its
Greater China regional scale ratings of 'cnBBB-' to the company
and the proposed senior notes. The rating on the notes is subject
to Standard & Poor's review of the final issuance documentation.
Lonking will use the proceeds from the proposed bond primarily
for refinancing and for production facility expansion and
enhancement.
"The rating on Lonking reflects the company's small revenue base
as compared with its global peers, its limited geographic and
product diversity, a potential decline in margins, and additional
risks from the potential changes in government policies," said
Standard & Poor's credit analyst Daniel Hsiao. "Lonking's
established market position in wheel loaders, its extensive sales
and distribution network across China, and moderately leveraged
financial position partly offset these risks."
"Lonking's business risk profile is fair, in our view. The
company's revenue base is significantly smaller than its global
peers'. We believe Lonking's geographic coverage and product
diversity will likely remain limited over the next few years," Mr.
Hsiao said.
"Lonking's financial risk profile is significant. We expect the
company's cash flow generation to remain satisfactory in the next
few years. In our opinion, Lonking's management has been
disciplined toward funding expansion. It has a good record of
controlling leverage while expanding capacity," according to S&P.
S&P continued, "The stable outlook reflects our expectation that
Lonking's established market position and continued favorable
industry prospects will help the company improve its revenue base
while maintaining good profitability. We also expect the company
to have sufficient liquidity and cash flow to cope with its
planned capacity expansion."
"We may lower the rating if the company's profitability and cash
flow declines such that its adjusted ratio of total debt to EBITDA
increases to 2x-4x or its ratio of debt to total capital exceeds
50%. This may result if intense competition or changes in
government policy significantly weaken Lonking's market position
and profitability, or if aggressive acquisitions and debt-funded
capital expansion cause the company's debt to rise beyond our
expectation," S&P related.
The lack of diversity in Lonking's business limits the rating
upside in the next few years. "Nevertheless, we may raise the
rating if Lonking significantly increases its revenue base by
providing a wider range of product and service offerings to more
customers and to more markets domestically and internationally,
while maintaining its current profitability and leverage," S&P
added.
================
H O N G K O N G
================
EVERSTEP LIMITED: Members' Final Meeting Set for June 16
--------------------------------------------------------
Members of Everstep Limited will hold their final meeting on
June 16, 2011, at 10:00 a.m., at 8/F., A T Tower, 180 Electric
Road, North Point, in Hong Kong.
At the meeting, Fong Man Lung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
FAR EAST REFRIGERATION: Creditors' Proofs of Debt Due June 13
-------------------------------------------------------------
Far East Refrigeration (Hong Kong) Limited, which is in members'
voluntary liquidation, requires its creditors to file their proofs
of debt by June 13, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on April 21, 2011.
The company's liquidator is:
Loh Pui Lai
Block A, Flat 2
20/F., Flora Garden
50 Cloudview Road
Hong Kong
G-CHANNELS LIMITED: Creditors' Proofs of Debt Due June 14
---------------------------------------------------------
G-Channels Limited, which is in members' voluntary liquidation,
requires its creditors to file their proofs of debt by June 14,
2011, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on May 4, 2011.
The company's liquidator is:
Kong Chi How Johnson
25th Floor, Wing On Centre
111 Connaught Road
Central, Hong Kong
GAMEONE ONLINE: Creditors' Proofs of Debt Due June 14
-----------------------------------------------------
Gameone Online Entertainment Group Limited, which is in members'
voluntary liquidation, requires its creditors to file their proofs
of debt by June 14, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on May 4, 2011.
The company's liquidator is:
Kong Chi How Johnson
25th Floor, Wing On Centre
111 Connaught Road
Central, Hong Kong
GC STRUCTURED: Middleton and Chan Appointed as Liquidators
----------------------------------------------------------
Edward Simon Middleton and Chan Mei Lan on May 5, 2011, were
appointed as liquidators of GC Structured Products Limited.
The liquidators may be reached at:
Edward Simon Middleton
Chan Mei Lan
8th Floor, Prince's Building
10 Chater Road
Central, Hong Kong
HOTUNG ENERPRISES: Briscoe and Wong Step Down as Liquidators
------------------------------------------------------------
Stephen Briscoe and Wong Teck Meng stepped down as liquidators of
Hotung Enerprises Limited on May 6, 2011.
INNOVAGE HK: Corkhill and Bruce Appointed as Liquidators
--------------------------------------------------------
Thomas Andrew Corkhill and Iain Ferguson Bruce on April 30, 2011,
were appointed as liquidators of Innovage HK Limited.
The liquidators may be reached at:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Floor, Gloucester Tower
The Landmark, 15 Queen's Road
Central, Hong Kong
INTEGRATED DEVICE: Seng and Lo Step Down as Liquidators
-------------------------------------------------------
Natalia K M Seng and Susan Y H Lo stepped down as liquidators of
Integrated Device Technology Asia Limited on May 6, 2011.
K-POWER EDUCATION: Members' Final General Meeting Set for June 14
-----------------------------------------------------------------
Members of K-Power Education and Training Consulting Limited will
hold their final general meeting on June 14, 2011, at 11:00 a.m.,
at its registered office.
At the meeting, Chan Fu Tung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
NUMBER ONE: Seng and Lo Step Down as Liquidators
------------------------------------------------
Natalia K M Seng and Susan Y H Lo stepped down as liquidators of
Number One Fashion Limited on May 6, 2011.
ORIGINAL MARK: Placed Under Voluntary Wind-Up Proceedings
---------------------------------------------------------
At an extraordinary general meeting held on May 3, 2011, creditors
of Original Mark Limited resolved to voluntarily wind up the
company's operations.
The company's liquidator is:
Chan Sek Kwan Rays
Unit F, 12/F
Seabright Plaza
9-23 Shell Street
North Point, Hong Kong
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I N D I A
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A G AEROVISION: ICRA Cuts Rating on INR45.46cr Bank Loan to 'LB'
----------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR45.46
crore bank facilities of A G Aerovision Electronics Private
Limited from 'LBB' to 'LB'. ICRA has reaffirmed the 'A4' rating
earlier assigned to the INR9.10 crore bank facilities of AGA.
The rating downgrade factors in AGA's stretched liquidity position
as evidenced by delays in servicing of debt obligations by the
company. In FY2010 and 2011, AGA had embarked on a significant
debt funded capital expenditure and diversification plan which led
to stressed debt protection metrics. Moreover, AGA's increased
scale of operations along with foray into own manufacturing as
against assembly operations carried out until FY 2010, has led to
higher working capital requirements. ICRA notes that the company
has started witnessing improvement in operating margins after the
recent commissioning of new manufacturing capacities. However, the
full benefits of the expansion are expected to accrue from FY 2012
onwards as company receives peak sales in the summer season
(primarily Q1 and Q2).
The ratings however continue to favorably factor AGA's long
standing experience with Samsung Electronics and the promoters'
experience in this business. The company's recently commissioned
plant based in Sriperambadur (Chennai), is located in proximity to
Samsung's manufacturing complex, will cater to contract
manufacturing orders across product segments for Samsung. It will
also act as an Original equipment manufacturer (OEM) for Voltas in
the southern India region. The rating continues to factor the
healthy revenue visibility on account of setting up of the new
plant and order inflows from the aforementioned principals. The
company's ability to stabilize its recently acquired large scale
of operations, manage its working capital requirements and timely
service its debt obligations would be key rating sensitivities
going forward.
About A G Aerovision
A G Aerovision Electronics Private Limited is engaged in the
assembly of air conditioners (AC) as an Original Equipment
Manufacturer (OEM) for consumer goods industry. AGA also
manufactures plastic components for consumer electronic appliances
like refrigerators, television sets, ACs and EPS moulding
corrugated boxes for their packaging. The company has it
facilities at Kala Amb in Himachal Pradesh and a recently
commissioned facility at Sriperambadur (near Chennai) in
Kanchipuram, Tamil Nadu. Till 2009, the company was catering to
Samsung's AC business. However, with setting up a new facility in
Sriperambadur, the company has started catering to Voltas and
automobile ancillaries like Borg Warner etc. The company is in the
process of expanding its capacity in its Sriperambadur unit. AGA
is part of the Intec group of companies promoted by first
generation entrepreneur Amarjit Singh.
For the financial year ending March 31, 2011, the company reported
an operating income of INR215.7 crore, operating profit of INR13.1
crore and net profit of INR3.6 crore, as compared to an operating
income of INR145.3 crore operating profit of INR5.7 crore and net
profit of INR2.5 crore in the preceding year. April
ADINATH RE-ROLLING: ICRA Suspends 'LBB+' Rating on INR30cr Loan
---------------------------------------------------------------
ICRA has suspended LBB+ rating assigned to the INR30 crore, long
term loans & working capital facilities of Adinath Re-rolling
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company. According to its suspension policy,
ICRA may suspend any rating outstanding if in its opinion there is
insufficient information to assess such rating during the
surveillance exercise. ICRA will withdraw the rating in case it
remains under suspension for a period of three years.
BALAJI FIBER: CRISIL Assigns 'BB' Rating to INR37.7MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Balaji Fiber Reinforce Pvt Ltd.
Facilities Ratings
---------- -------
INR100 Million Cash Credit BB/Stable (Assigned)
INR10 Million Standby Line of BB/Stable (Assigned)
of Credit
INR37.7 Million Rupee Term Loan BB/Stable (Assigned)
INR26.5 Million Proposed Long-Term BB/Stable (Assigned)
Bank Loan Facility
INR100 Million Letter of Credit P4+ (Assigned)
INR60 Million Bank Guarantee P4+ (Assigned)
The ratings reflect BFRPL's large working capital requirements
resulting in stretched liquidity and exposure to risks related to
tender-based nature of its business. These weaknesses are
partially offset by its established track record, experienced
management, and healthy debt protection metrics.
Outlook: Stable
CRISIL believes that BFRPL will benefit over the medium term from
its established market position and the healthy growth potential
for fibre-reinforced plastic (FRP)- and glass-reinforced plastic
(GRP)-based products. The outlook may be revised to 'Positive' if
the company is able to increase its scale of operations by
entering into new product segments and successfully bid for
government contracts, while maintaining profitability. Conversely,
the outlook may be revised to 'Negative' in case the company
undertakes a large, debt-funded capital expenditure programme,
leading to deterioration in its capital structure, or in case of
further stretch on working capital cycle adversely impacting its
cash flows.
About Balaji Fiber
BFRPL was established as Reinchem Industries, a proprietorship
firm, in 1965, by Mr. Shantilal Patel. In 2002, Mr. Shantilal
Patel's son, Mr. Nilesh Patel, joined the firm, and later in the
year, it was reconstituted as a private limited company. It began
as a manufacturer of FRP-based electrical components for Crompton
& Greaves Limited and Jyoti Limited (rated 'BBB-/Positive/P3' by
CRISIL). Over the years, the company has diversified into the
manufacture of fabricated pipes, fittings, tanks, and other
equipment from GRP, high-density polyethylene, polypropylene,
polyvinyl chloride, and other polymers and resins.
BFRPL reported a profit after tax (PAT) of INR37 million on net
sales of INR592 million for 2009-10 (refers to financial year,
April 1 to March 31) as against a PAT of INR38 million on net
sales of INR606 million for 2008-09.
DURGA CONSTRUCTION: ICRA Assigns 'LBB' Rating to INR7cr LT Limits
-----------------------------------------------------------------
ICRA has assigned an 'LBB' rating with stable outlook to INR7.00
crore long term fund-based limits (enhanced from INR5.00 crore)
and term loan of INR8.02 crore (earlier nil) of Durga Construction
Company. ICRA has also assigned 'A4' rating to INR20.00 crore
(enhanced from INR16.02 crore) non-fund based limits of DCC.
The ratings are constrained by the limited scale of operations
with single mineral concentration in lignite mining in the states
of Rajasthan, Maharashtra and Gujarat and high gearing levels on
account of significant capital expenditure in the recent years for
purchasing equipment for new contracts. The ratings also take into
account the vulnerability of profitability to diesel price
variation in case of diesel usage being higher than the allowed
levels, regulatory risks associated with mining operations and
presence of liquidated damage clauses in all contracts making it
critical to achieve the monthly mining quantities. The ratings are
further constrained by the partnership nature of the firm whereby
any substantial capital withdrawals from the capital account can
adversely affect the capital structure.
While ICRA expects DCC to maintain its operating profit margin at
the present level and decline in gearing going forward, however
higher than planned capex funded through debt or fall in operating
profitability would be the key rating sensitivity going forward.
About Durga Construction
Durga Construction Company was established in the year 1994 and is
engaged in overburden removal and lignite excavation contract
works. The firm was established by three partners namely Mr.
Shamji Ladha Dholu (father), Mr. Shantilal Shamji Dholu (son), Mr.
Navin Shamji Dholu (son). DCC is an 'AA' class government
registered contractor and has been working as supplier of contract
mining services to its clients in infrastructure sector in India.
Earlier the firm operated as a sub contractor for bigger
companies, but over the years through experience, improvement in
financial position, strong technical capabilities and quality of
work, the firm in a position to bid for major contracts.
HARIHAR ROCKS: ICRA Assigns 'LC' Rating to INR8cr Term Loan
-----------------------------------------------------------
ICRA has assigned a rating of 'LC' to the INR8.00 crore Term Loan
Facilities and INR3.50 crore of Long Term Fund based bank
facilities of the firm. ICRA has also assigned a rating of 'A5'
to the INR0.59 crore Short-term Non Fund based bank facilities of
Harihar Rocks. The ratings take into account the small scale of
operations of the firm, delays in servicing its debt obligations
pertaining to bank loans, and the financial profile of the firm
characterized by high gearing and stretched cash flows. The
ratings also consider the stretched working capital situation on
account of high inventories inherent to the industry, arising due
to the necessity of stocking raw granite blocks. The promoters
have experience in the granite industry and there is an
improvement in the export demand for Indian granite slabs, which
suffered a major downturn an year back.
Harihar Rocks, a partnership firm, is a 100% Export Oriented Unit
(EOU) located in Madurai - Sivagangai National Highway, Tamil
Nadu. Incorporated in 2007, the firm is involved in the cutting
and polishing business of gang-saw size granite slabs. The major
varieties are 2 cm and 3 cm slabs. The raw granites are sourced
both locally and from outside India. The firm undertakes both
direct exports and deemed exports to SEZs and EOUs.
Recent Results
The firm reported a net profit of INR1.6 crore on an operating
income of INR7.7 crore for the year ended on March 31, 2010, which
included a one-time discount from suppliers to the extent of
INR2.2 crore translating into a negative PAT of INR0.6 crore.
Compared to this, for the nine month period ended Dec. 31, 2010,
the firm made a net profit of INR0.2 crore on an operating income
of INR6.3 crore. The firm's profit levels have been stable over
the last one year.
HOME LAND: ICRA Suspends 'LB' Rating on INR14cr Bank Facilities
---------------------------------------------------------------
ICRA has suspended the LB rating assigned to the INR14 crore fund
based facilities of Home Land City Mall. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company. According to its
suspension policy, ICRA may suspend any rating outstanding if in
its opinion there is insufficient information to assess such
rating during the surveillance exercise. ICRA will withdraw the
rating in case it remains under suspension for a period of three
years
INTERNATIONAL CYLINDERS: CRISIL Rates INR60MM Cash Credit at 'BB+'
------------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of International Cylinders Pvt Ltd (ICL, part of the
Tirupati group).
Facilities Ratings
---------- -------
INR60.0 Million Cash Credit Limit BB+/Stable (Assigned)
INR5.0 Million Standby Line of Credit P4+ (Assigned)
INR150.0 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the Tirupati group's significant fungibility
of cash flows between group companies and its susceptibility to
customer and geographic concentration along with exposure to
tender based business. These rating weaknesses are partially
offset by the group's above-average financial risk profile, marked
by low gearing and established presence of the company in the
industry.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of ICL, Tirupati LPG Industries Ltd and
Tirupati Cylinders Ltd, collectively referred to as the Tirupati
group. This is because all three companies are managed by the same
promoters, are in the same line of business, have operational
linkages with regards to procurement of goods, and have also
extended financial support to each other in exigencies. Besides,
there is cross holding between the three companies.
Outlook: Stable
CRISIL believes that the Tirupati group will maintain its credit
risk profile on the back of its above average financial risk
profile marked by low gearing. The outlook may be revised to
'Positive' if the Tirupati group sustain its operating margins
along with less than expected exposure to group companies leading
to improved liquidity profile. Conversely, the outlook may be
revised to 'Negative' in case of large debt-funded capital
expenditure or its operating margin declines more than expected or
larger-than-expected exposure to group companies, leading to
further stress on liquidity.
About the Group
Tirupati Group was started in 1987 with the incorporation of ICL
in 1987 to start cylinder manufacturing at Paonta Sahib (Himachal
Pradesh). It expanded its presence in the industry by taking over
a sick unit in Muzaffarnagar (Uttar Pradesh) in 1989 under TCL.
Later on, in 1994, TLPG was set up and took over a cylinder
manufacturing unit from Uttar Pradesh Financial Corporation
(UPFC), based in Selaqui, Dehradun (Uttarakhand, then part of
Uttar Pradesh).
Tirupati group manufactures LPG cylinders for Indian oil marketing
companies, i.e. Indian Oil Corporation Ltd (rated AAA/Negative/P1+
by CRISIL), Bharat Petroleum Corporation Ltd (rated
AAA/FAAA/Negative/P1+ by CRISIL), and Hindustan Petroleum
Corporation Ltd (rated AAA/FAAA/Negative/P1+ by CRISIL). It has a
combined manufacturing capacity of over 2 million LPG cylinders on
a single shift basis. It manufactures LPG cylinders of various
sizes as per the customers' requirement; however, over 90 per cent
of its revenues are from the 14.2-kg cylinder. It is the one of
the large LPG cylinder manufacturers in India.
ICL reported a profit after tax (PAT) of INR60.2 million on net
sales of INR892 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR29.0 million on net
sales of INR534.2 million for 2008-09.
J.J. GOLD: CRISIL Cuts Rating on INR100MM Bank Guarantee to 'P4+'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the short-term bank facility
of J.J. Gold House to 'P4+' from 'P3'. The downgrade reflects
significant withdrawals of capital funds by JJGH's proprietor,
which has resulted into negative networth as on March 31, 2010.
Facilities Ratings
---------- -------
INR100 Million Bank Guarantee P4+ (Downgraded from 'P3')
The rating reflects JJGH's exposure to risks related to intense
competition in the bullion trading industry and its low operating
margin. These rating weaknesses are partially offset by JJGH's
strong track record in the gold business and the benefits that it
derives from its promoters' experience in the bullion market.
JJGH was set up as a proprietorship firm in 1997 by Mr. Harshad
Ajmera. JJGH trades in gold and silver bullion, and provides
hallmarking services for gold and gold jewellery. It is based in
Kolkata (West Bengal). The proprietorship firm is in the process
of being reconstituted as a corporate entity, wherein JJGH will be
taken over by J J House Pvt Ltd (a sister concern of the
promoter).
JJGH reported a profit after tax (PAT) of INR4.0 million on net
sales of INR14.4 billion for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR5.4 million on net sales
of INR9.5 billion for 2008-09.
KARNATAKA HANDLOOM: ICRA Reaffirms 'LBB+' Rating on INR27cr Loan
----------------------------------------------------------------
ICRA has reaffirmed the 'LBB+' rating assigned to the INR27.00
crore fund-based bank limits of The Karnataka Handloom Development
Corporation Ltd. The outlook on the long-term rating is 'stable'.
The rating takes into account KHDC's strategic importance to both
the Government of Karnataka (GoK) and the Government of India
(GoI) for meeting their social obligations to the weavers in the
State of Karnataka, leading to regular financial support being
received by the company from them, and the adequate credit quality
of GoK. While assigning the rating, ICRA has assumed the
continuity of such support going forward. The rating is, however,
constraint by the high working capital intensity of KHDC's
operations because of delayed payments from the Education
Department, GoK, resulting in high borrowings and consequently a
high interest burden that exerts pressures on profits; the
company's high dependence on GoK and GoI for subsidies, high sales
concentration risks since the Education Department, GoK, alone
accounts for a majority its total sales and an aggressive capital
structure. ICRA also takes note of the term loans that KHDC
availed from GoK, which has not been serviced in the past.
KHDC procures raw material, primarily yarn, and supplies the same
to weavers, who process it into fabric against conversion charges
received from the company. KHDC has been associated with around
eleven thousand weavers, who are located across various production
units, primarily in North Karnataka. Of the total net sales during
2009-10, around 50% was accounted for by the Education Department,
GoK under various Government schemes including the Vidya Vikas
Scheme (VVS) and Subsidised Saree Dhoti Scheme. Additionally,
around 35% of sales was accounted for by bulk supply orders from
the various departments/agencies of the GoK, which effectively
increases the company's dependence on the State Government for its
financial performance. KHDC also sells its products through a
network of 50 retail outlets under the name Priyadarshini
Handlooms. To support KHDC's operations, GoK provides regular
financial support through budgetary provisions.
KHDC posted a growth in operating income to INR98.19 crore in
2009-10 from INR88.10 crore in 2008-09 on account a of significant
increase in sales from the bulk orders from the Health Department,
GoK. However, on account of a significant increase in employee
cost, KHDC reported operating and net losses of INR6.78 crore and
INR11.04 crore respectively during 2009-10. KHDC's operating
income however increased significantly during the first nine
months of 2010-11, driven by higher scheme specific sales made
towards a number of Departments of GoK. Higher sales helped in
better absorption of fixed costs, leading to profits both at the
operating and net levels during the first nine months of 2010-11.
KHDC had received loans from GoK to fund a Voluntary Retirement
Scheme (VRS) in 2005-06 to improve its profitability in business.
ICRA notes that KHDC has not been servicing such loans taken from
GoK. The capital structure of the company remained aggressive,
with a gearing of 3.81 time as on March 31, 2010 on account of
significant losses suffered during 2009-10, and borrowings to fund
its working capital requirement. Such requirement in KHDC's
business is high because of delayed payments received from the
Education Department, GoK. Nevertheless, despite the weak
financial profile, ICRA believes that the credit quality of KHDC
would continue to be supported by its strategic importance to both
the central as well as the state Government in the long term.
About The Karnataka Handloom
KHDC was incorporated in 1975 under the 20 Point Programme of the
GoI and the GoK to promote the handloom industry and to provide
economic and social welfare to weavers in the State of Karnataka.
KHDC provides raw material to weavers and procure fabric from them
against payment of conversion charges. KHDC is also the nodal
agency for implementation of various welfare schemes of the GoK
and the GoI for the weavers in the state such as living cum
workshed, health and life insurance and group saving schemes.
Recent Results
In 2009-10, KHDC reported an operating income of INR98.19 crore
and a net loss of INR11.04 crore. During the first nine months in
2010-11, according to the provisional financial statements, KHDC
reported an operating income of INR137.29 crore and a net profit
of INR1.82 crore.
KMB TRADING: CRISIL Assigns 'B' Rating to INR162.1MM LT Loan
------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of KMB Trading Corporation Pvt Ltd.
Facilities Ratings
---------- -------
INR90 Million Cash Credit B/Stable (Assigned)
INR162.1 Million Long-Term Loan B/Stable (Assigned)
INR12.9 Million Bank Guarantee P4 (Assigned)
The ratings reflect KMB's weak financial risk profile, marked by a
high gearing and weak debt protection metrics, large working
capital requirements, and relatively small scale of operations.
These rating weaknesses are partially offset by the extensive
experience of KMB's management in the granite industry.
Outlook: Stable
CRISIL believes that KMB will commence operations at its new
facility without any further cost or time overrun. The outlook may
be revised to 'Positive' in case of a significant, sustainable
increase in KMB's revenues and profitability following
stabilization of operations at its proposed facility, and if the
company improves its capital structure considerably from the
current levels. Conversely, the outlook may be revised to
'Negative' if KMB faces any cost or time overrun in the ongoing
project or reports lower-than-expected margins or if the company
undertakes an additional debt-funded capital expenditure (capex)
programme.
About KMB Trading
Set up in 1999 as a partnership firm by Mr. K Shoukath Ali and his
brother, Mr. Yusuff Basha, KMB was reconstituted as a private
limited company in 2010. Headquartered in Salem (Tamil Nadu), KMB
is in the business of quarrying and selling rough granite blocks.
In 2010-11 (refers to financial year, April 1 to March 31), KMB
embarked upon a plan to forward integrate into the processing of
granite involving a capex of INR280 million. The facility, which
is expected to commence operations by July 2011, will have a
processing capability of 1.2 million square feet (sq ft) of
granite per annum. KMB and its group companies, engaged in the
same line of business, own 23 quarries across Tamil Nadu,
Karnataka, and Andhra Pradesh. These quarries have a combined
capacity to mine 84 million sq ft per annum.
KMB reported a profit after tax (PAT) of INR0.70 million on net
sales of INR75.7 million for 2009-10, against a PAT of INR0.70
million on net sales of INR76.8 million for 2008-09.
MARCK BIOSCIENCES: CRISIL Reaffirms 'D' Rating on INR598.2MM Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Marck Biosciences
Ltd continue to reflect instances of delay by Marck in servicing
its term loans; the delays have been caused by the company's weak
liquidity on account of high receivables.
Facilities Ratings
---------- -------
INR598.20 Million Long-Term Loan D (Reaffirmed)
INR187.50 Million Cash Credit D (Reaffirmed)
INR50.00 Million Letter of Credit P5 (Reaffirmed)
This rating weakness is partially offset by Mark Biosciences's
diversified geographic and customer profile.
Marck, which began operations as a parenteral manufacturer in
1995, is a closely held, unlisted company. In India, the company
sells fluid therapy products, injectables, formulations, and
diluents to hospitals. It also manufactures nasal drops, wound
care products, respiratory and ophthalmic solutions, and diluents.
In the contract manufacturing segment, Marck manufactures
injectables, formulations, ophthalmic and respiratory solutions,
nebulae, and diluents, for Indian pharmaceutical companies. The
company will soon start its lens cleaning solution division. Marck
also sells fluid therapy products in more than 60 countries. The
company manufactures large- and small-volume parenterals at its
unit in Kheda (Gujarat).
Marck reported a provisional profit after tax (PAT) of INR106.2
million on net sales of INR1028.5 million for 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR25.9
million on net sales of INR919.5 million for 2009-10.
PANCHAVATI POLYFIBRES: ICRA Assigns 'LBB' Rating to INR15.3cr Loan
------------------------------------------------------------------
ICRA has assigned 'LBB' rating to INR15.30 crore fund based and
INR5.35 crore bank guarantee facilities of Panchavati Polyfibres
Limited. ICRA has also assigned an 'A4' rating to INR2.50 crore
letter of credit facilities of PPL. The outlook on the long-term
rating is Stable.
The assigned ratings are constrained by the weak financial profile
of PPL characterized by high gearing of 3.04 times as on March 31,
2010, and moderate coverage indicators with OPBITDA/Interest of
2.1 times and Total Debt/OPBIDTA of 4.79 times in FY 10. Being a
low margin business, the margins at operating and net level are
6.6% and 1.7% respectively during FY10.
ICRA notes that the company's profitability is exposed to
cyclicality and movements in polymer prices. However, the monthly
revision of prices by the cement manufacturers mitigates the risk
to some extent. The Indian poly woven sacks industry is
characterized by high fragmentation and competitive intensity,
resulting from low capital intensity. Since the cement
manufacturers are large players in terms of their size and
operations, PPL exhibits weak bargaining power with them, leaving
its profitability vulnerable particularly in a scenario of
increasing competitive pressures.
The ratings however draw comfort from the assured off take. PPL is
considered to be backward integration for Sagar Cements Limited,
PPL caters to 70-80% of the sack requirements of its promoter,
SCL. The demand prospects for cement sector are favorable, thereby
pushing up the potential for poly woven sacks. The steady growth
in cement production due to capacity additions is expected to be
favorable. PPL's aggressive growth plans may result in high net
funding requirements to sustain the targeted growth. Moreover
excessive reliance on debt to fund the proposed growth plans could
have adverse impact on coverage and leverage indicators.
About Panchavati Polyfibres
Panchavati Polyfibres Ltd. was incorporated in the year 1984 and
is in the production of Poly Woven Sacks. It was promoted by Mr.
S. Veera Reddy and Mr. Narasimha Reddy. The manufacturing facility
is located in I.D.A. Bolarum, Hyderabad. The installed capacity of
PPL as on Sept. 30, 2010, is 5.85 crore sacks or 5300 MT per
annum.
RELIABLE AUTOTECH: CRISIL Upgrades Rating on INR410MM Loan to 'B'
-----------------------------------------------------------------
CRISIL has upgraded its rating on the INR410 million long-term
loan and INR200 million cash credit facilities of Reliable
Autotech Pvt Ltd to 'B/Stable' from 'B-/Stable'. The 'B/Stable'
rating has been assigned to the company's proposed long-term bank
facility, while the rating on the short-term facilities has been
reaffirmed at 'P4'.
Facilities Ratings
---------- -------
INR410.0 Million Long-Term Loan B/Stable (Upgraded from
'B-/Stable')
INR200.0 Million Cash Credit B/Stable (Upgraded from
'B-/Stable')
INR70.0 Million Proposed LT Bank B/Stable (Assigned)
Loan Facility
INR150.0 Million Letter of Credit P4 (Reaffirmed)
INR50.0 Million Bank Guarantee P4 (Reaffirmed)
The upgrade reflects a compound annual growth rate (CAGR) of over
32 per cent in Reliable Autotech's topline to about INR1.8
billion, and the company's stable operating margin at about 11 per
cent, in the past two years through 2010-11 (refers to financial
year, April 1 to March 31). The increase in topline has been
driven by improved demand from the export markets and addition of
new customers. The company's export revenues have increased to
about INR280 million in 2010-11 from INR175 million in 2009-10. In
2010-11, Reliable Autotech added new clients, including Volkswagen
AG, Skoda Auto India Pvt Ltd, and Bentler International AG, which
augurs well for the company in terms of offtake from its recently
enhanced capacities. CRISIL believes that Reliable Autotech's
current capacity will be sufficient to cater to incremental demand
over the medium term, and that the company will not have to
contract fresh debt to fund its capital expenditure (capex).
The ratings reflect Reliable Autotech's below-average financial
profile marked by high gearing and weak debt protection metrics,
and susceptibility to volatility in raw material prices and
pricing pressures from automobile original equipment manufacturers
(OEMs). These rating weaknesses are partially offset by the
company's established relationships with reputed OEMs.
Outlook: Stable
CRISIL believes that Reliable Autotech will maintain its business
risk profile over the medium term, supported by its established
customer relationships and extensive experience of its promoters.
The outlook may be revised to 'Positive' in case of a significant
improvement in Reliable Autotech's capital structure, most likely
because of fresh equity infusion. Conversely, the outlook may be
revised to 'Negative' if the company undertakes larger-than-
expected debt-funded capex programme, or if its profitability
declines, thereby adversely affecting its financial risk profile.
About Reliable Autotech
Reliable Autotech, the flagship company of the Reliable group, was
set up in 1996 by Mr. Rajendra Bagwe, Mr. Devendra Bapat, and Mr.
Amol Chitnis. The company manufactures heavy pressed parts and
components, and tools and dies for the automotive sector; it also
assembles components such as front and rear doors, brake parts,
brackets, and chassis parts. The company supplies to large
automotive companies such as Mahindra & Mahindra Ltd, John Deere
India Pvt. Ltd. and Volkswagen AG. Reliable currently has three
manufacturing facilities -- two in Nashik (Maharashtra) and one in
Pune (Maharashtra).
For 2009-10, Reliable Autotech reported a profit after tax of
INR18 million on an operating income of INR1268 million, against a
net loss of INR126.8 million on an operating income of INR1014
million for 2008-09.
SAM APPARELS: ICRA Cuts Rating on INR14.25cr Term Loan to 'LC'
--------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR14.25
crore term loans of Sam Apparels Private Limited from 'LBB+' to
'LC'. ICRA has also revised the short term rating assigned to the
INR26.0 crore fund based facilities of Sam from 'A4+' to 'A5'.
The downgrade factors in SAM's stretched liquidity position as
evidenced in delays in debt servicing. In FY 2010 SAM made
significant capital expenditure through investment in additional
garment manufacturing capacities, setting up of new office
building and showroom; and giving advances for acquisition of yarn
processing facility. The capital expenditure along with increase
in working capital intensity has led to increase in leverage and
stretched liquidity position. Further, the ratings continue to be
constrained by limited pricing power with clients on account of
presence in low value added segment and competitive nature of
business. The ratings however favorably factor the diversification
in client base owing to acquisition of new clients in new
geographies and strong revenue visibility on the back of a healthy
order book. Access to dedicated fabric processing facilities is
expected to lead to operational efficiencies
In FY 2011, SAM Overseas has been converted into a private limited
entity SAM Apparels Private Limited. The promoters plan to carry
out group's entire garments manufacturing operations in this newly
incorporated entity. As per this plan, SAPL has taken over entire
assets and liabilities of SAM Overseas partnership. Further, SAPL
shall take the facilities of SAM Overseas proprietorship on lease.
Going forward, SAPL's ability to increase business volumes,
maintain profitability, manage working capital requirements and
timely service its debt obligations would be key rating
sensitivities.
Incorporated in 2006, SAM Overseas was a 75:25 partnership between
Mr. Mukesh Sharma and Mr. Ved Prakash Sachdev engaged in the
manufacturing of ladies and kids readymade garments for export
markets like Europe, United Kingdom and South America. Another
group entity SAM Overseas (Proprietorship) was also in the same
line of business. In FY 2011, with a view to consolidate the
entire garment manufacturing operations, SAM Apparels Private
Limited (SAPL) was incorporated which took over entire assets and
liabilities of SAM Overseas Partnership. The manufacturing
facilities of the proprietorship firm would be leased to SAPL. The
consolidated garment manufacturing capacity of SAPL would be
around 70,000 pieces per day as compared to 44,000 pieces in the
erstwhile partnership entity. Apart from garment manufacturing,
the group also has interest in yarn processing which is housed in
Samtex Desinz which is a proprietorship firm of Mr. Sharma. All
the facilities are based in NOIDA, Uttar Pradesh.
Recent results
As per the provisional financials for the period April 1, 2010, to
Feb. 15, 2011, SAM reported revenues of INR48.9 crores and OPBDIT
of INR7 crore as against revenues and OPBDIT of INR47.4 crore and
INR3.3 crore respectively in full year FY 2010. The growth in
revenues was mainly on account of increased capacities and thus
high volume orders from existing clients; as well as orders from
newly acquired clients.
SIRICON PROJECTS: CRISIL Places 'B-' Rating on INR70MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'B-/Stable/P4' ratings to the bank
facilities of Siricon Projects Pvt Ltd.
Facilities Ratings
---------- -------
INR70.00 Million Cash Credit B-/Stable (Assigned)
INR29.90 Million Bank Guarantee P4 (Assigned)
The ratings reflect SPPL's small scale of operations, its
susceptibility to segmental concentration in revenues and its weak
financial risk profile, marked by small net worth, and large
working capital requirements. These rating weaknesses are
partially offset by SPPL's established business risk profile,
backed by its promoters' extensive experience in the construction
industry and strong relationships with key principals.
Outlook: Stable
CRISIL believes that SPPL will continue to benefit over the medium
term from its promoters' long and established experience. The
outlook may be revised to 'Positive' if the company scales up its
operations and profitability, diversifies its revenue profile, and
simultaneously improves its capital structure. Conversely, the
outlook may be revised to 'Negative' if SPPL's financial risk
profile deteriorates because of a larger-than-expected, debt-
funded capital expenditure (capex) programme, or the company's
liquidity deteriorates further because of delays in realising its
receivables.
About Siricon Projects
Set up as a partnership firm, Siri Constructions, in 2004, SPPL
was reconstituted as a private limited company and got its present
name in 2007. The promoter-directors Mr. I V Raghu kumar and Mr. B
Ramesh Naidu have 30 years of experience in the same line of
business. SPPL undertakes civil construction projects and has
expertise in cross-country piping, large format earth works, and
constructing industrial plants and commercial buildings. As the
company's small size prohibits it from participating in large-
value projects, SPPL undertakes projects on a sub-contract basis
from larger companies.
SPPL reported a profit after tax (PAT) of INR4 million on net
sales of INR85 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR6 million on net
sales of INR136 million for 2008-09.
SRI LANGTA BABA: CRISIL Assigns 'D' Rating to INR93MM LT Loan
-------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of Sri
Langta Baba Steels Pvt Ltd. The ratings reflect instances of
delay by SLBSPL in servicing its debt and frequent overutilisation
of its cash credit limit.
Facilities Ratings
---------- -------
INR66 Million Cash Credit-Stock D (Assigned)
INR24 Million Cash Credit - Book D (Assigned)
Debt
INR93 Million Long-Term Loan D (Assigned)
INR10 Million Proposed Long-Term D (Assigned)
Bank Loan Facility
SLBSPL has a weak financial profile, marked by high gearing, weak
debt protection metrics, and small net worth, and marginal market
share and negligible bargaining power in the fragmented and
intensely competitive steel industry. These rating weaknesses are
partially offset by SLBSPL's moderate business risk profile,
backed by its recent backward integration into ingot
manufacturing.
Incorporated in March 2005, SLBSPL commenced commercial operations
at its thermo-mechanically-treated bar manufacturing unit in
August 2008. The unit has a capacity 8 tonnes per hour (tph).
Recently, the company set up two induction furnaces of 8 tonnes
each. The furnaces commenced commercial operations in February
2011. The manufacturing facilities of SLBSPL are in Giridih
(Jharkhand). The company has customers in Jharkhand and Bihar. Its
day-to-day operations are looked after by its promoter directors,
Mr. Mohan Prasad Saw and Mr. Raj Kumar.
SLBSPL reported a profit after tax (PAT) of INR2.4 million on net
sales of INR173.2 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR2.6 million on net
sales of INR107.4 million for 2008-09.
TIRUPATI CYLINDERS: CRISIL Puts 'BB+' Rating on INR80M Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Tirupati Cylinders Limited.
Facilities Ratings
---------- -------
INR80.0 Million Cash Credit Facility BB+/Stable (Assigned)
INR100.0 Million Bank Guarantee P4+ (Assigned)
The ratings reflect the Tirupati group's significant fungibility
of cash flows between group companies and its susceptibility to
customer and geographic concentration along with exposure to
tender based business. These rating weaknesses are partially
offset by the group's above-average financial risk profile, marked
by low gearing and established presence of the company in the
industry.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of TCL, Tirupati LPG Industries Ltd and
International Cylinders Private Limited, collectively referred to
as the Tirupati group. This is because all three companies are
managed by the same promoters, are in the same line of business,
have operational linkages with regards to procurement of goods,
and have also extended financial support to each other in
exigencies. Besides, there is cross holding between the three
companies.
Outlook: Stable
CRISIL believes that the Tirupati group will maintain its credit
risk profile on the back of its above average financial risk
profile marked by low gearing. The outlook may be revised to
'Positive' if the Tirupati group sustain its operating margins
along with less than expected exposure to group companies leading
to improved liquidity profile. Conversely, the outlook may be
revised to 'Negative' in case of large debt-funded capital
expenditure or its operating margin declines more than expected or
larger-than-expected exposure to group companies, leading to
further stress on liquidity.
About the Group
Tirupati Group was started in 1987 with the incorporation of ICL
in 1987 to start cylinder manufacturing at Paonta Sahib (Himachal
Pradesh). It expanded its presence in the industry by taking over
a sick unit in Muzaffarnagar (Uttar Pradesh) in 1989 under TCL.
Later on, in 1994, TLPG was set up and took over a cylinder
manufacturing unit from Uttar Pradesh Financial Corporation
(UPFC), based in Selaqui, Dehradun (Uttarakhand, then part of
Uttar Pradesh).
Tirupati group manufactures LPG cylinders for Indian oil marketing
companies, i.e. Indian Oil Corporation Ltd (rated AAA/Negative/P1+
by CRISIL), Bharat Petroleum Corporation Ltd (rated
AAA/FAAA/Negative/P1+ by CRISIL), and Hindustan Petroleum
Corporation Ltd (rated AAA/FAAA/Negative/P1+ by CRISIL). It has a
combined manufacturing capacity of over 2 million LPG cylinders on
a single shift basis. It manufactures LPG cylinders of various
sizes as per the customers' requirement; however, over 90 per cent
of its revenues are from the 14.2-kg cylinder. It is the one of
the large LPG cylinder manufacturers in India.
TCL reported a profit after tax (PAT) of INR8.1 million on net
sales of INR377.8 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR4.4 million on net
sales of INR196.0 million for 2008-09.
TM TYRES: CRISIL Cuts Rating on INR20MM Corp. Term Loan to 'BB'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of TM Tyres Ltd to 'BB/Stable' from 'BB+/Stable', while
reaffirming the rating on the short-term facilities at 'P4+'.
Facilities Ratings
---------- -------
INR125 Million Cash Credit BB/Stable (Downgraded from
'BB+/Stable')
INR20 Mil. Corporate Term Loan BB/Stable (Downgraded from
'BB+/Stable')
INR21.10 Million Term Loan BB/Stable (Downgraded from
'BB+/Stable')
INR100 Mil. Letter of Credit P4+ (Reaffirmed)
and Bank Guarantee
The downgrade reflects expected pressure on TMTL's financial risk
profile over the medium term because of the company's large, debt-
funded capital expenditure (capex) programme involving the setting
up of a new tyre manufacturing facility. The downgrade also
reflects TMTL's exposure to project implementation and
stabilisation risks and the company's weak liquidity, caused by
increase in working capital requirements to support TMTL's revenue
growth. For 2010-11, TMTL is estimated to post around INR980
million of net sales, an increase of around 73 per cent from the
2009-10 levels. The revenues are expected to increase further
because of the capacity expansions planned over the medium term.
The ratings reflect TMTL's average financial risk profile, which
is expected to deteriorate because of large debt-funded capex, and
the company's susceptibility to volatility in raw material prices,
and exposure to project implementation and stabilisation risks.
These rating weaknesses are partially offset by TMTL's established
market position in the butyl tubes business.
Outlook: Stable
CRISIL believes that TMTL will maintain its business risk profile
over the medium term, backed by its established market position in
the butyl tubes segment and expansion of its existing capacity.
The outlook may be revised to 'Positive' in case of a significant
increase in TMTL's profitability and cash accruals, or if there is
higher-than-expected equity funding for the capex programmes,
resulting in an improvement in the company's financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
TMTL's cash accruals are lower than expected, thereby adversely
impacting the company's liquidity, or if there are cost and time
overruns in TMTL's ongoing and proposed capex programmes.
About TM Tyres
TMTL (formerly, TM Tyres Pvt Ltd) was incorporated in, and
promoted by Mr. Ashok Kumar Agarwal, as a private limited company
in 1996, and was reconstituted as a closely held public company in
2005. TMTL mainly manufactures inner rubber tubes (butyl tubes) of
weights ranging from 350 grams to 18 kilograms for vehicle tyres;
its products are used in two wheelers, passenger vehicles, light
commercial vehicles, heavy vehicles, earthmovers, and advanced arm
carriers. TMTL sells its tubes under the TM, Zing, and Sakshi
brands. TMTL's other products include butyl curing bags,
envelopes, flaps and rubber compounds. TMTL currently has a
manufacturing capacity of 20 tonnes per day (tpd); it plans to
increase it to 35 tpd in the near term. The company is based in
Hyderabad (Andhra Pradesh) and is managed by its promoter-
director, Mr. Ashok Kumar Agarwal.
TMTL reported, on provisional basis, a profit after tax (PAT) of
INR20.6 million on net sales of INR982.5 million for 2010-11,
against a PAT of INR9.24 million on net sales of INR526.83 million
for 2009-10.
UNISTAR DISTRIBUTORS: ICRA Rates INR2.6cr Bank Limits at 'LBB-'
---------------------------------------------------------------
ICRA has assigned a rating of 'LBB-' rating to the INR2.60 crore
fund-based limits of Unistar Distributors Private Limited. The
outlook on the long term rating is stable. ICRA has also assigned
a rating of 'A4' to the INR2.40 crore fund based limits and
INR2.10 non fund-based limits of UDPL.
The ratings factor in long experience of UDPL's promoters in
manufacturing and trading of bicycles and bicycle products,
company's long operational history and diversified product range.
However, the ratings are constrained by UDPL's small scale of
operations, highly competitive and fragmented industry with large
competition from medium and large players, UDPL's presence in low
end of the value chain with majority of revenues from trading of
bicycle parts. The ratings also take into account the weak
profitability (as indicated by operating margins of 2.58% and net
margins of 0.57%) and coverage indicators (as indicated by
interest coverage of 1.51%)
Unistar Distributors Private Limited was established in 1995 by
V.K Arora. The promoter V.K Arora has more than three decades of
experience in bicycle manufacturing and trading. The company's
primary objective was to export bicycles to West Africa with
Nigeria being their key export market. The company has a paid up
share capital if INR0.99 crore at the end of March 2010. It is a
closely held company with 100% shareholding with promoters and
family. The company sells the bicycles under the brand name
'Unistar'. The business has also shifted from manufacturing of
bicycles to trading of bicycles parts and natural rubber. UDPL
exports bicycles and imports bicycles accessories from China and
natural rubber from Thailand and Vietnam. For FY 2011, the company
reported operating income of INR38.47 crore and PAT of INR0.22
crore on a provisional basis.
VERMONT PROJECTS: CRISIL Reaffirms INR200MM Cash Credit at 'B'
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Vermont Projects
continue to reflect VP's weak liquidity, susceptibility to risks
related to project implementation, and geographic and revenue
concentration in a single project. These rating weaknesses are
partially offset by the extensive industry experience of VP's
promoters in the real estate sector and proven project
implementation abilities.
Facilities Ratings
---------- -------
INR200 Million Cash Credit B/Negative (Reaffirmed)
Outlook: Negative
CRISIL believes that VP's liquidity and business risk profile will
remain constrained by the uncertainty regarding the completion and
saleability of its ongoing realty project in Hyderabad (Andhra
Pradesh), and its impact on cash flows in the wake of slow flat
bookings. The rating may be downgraded in case VP's financial risk
profile, particularly liquidity, weakens, because of less-than-
expected customer advances, or time and cost overruns in its
ongoing project. Conversely, the outlook may be revised to
'Stable' if the flat bookings are better-than-expected, resulting
in healthy cash inflows and timely availability and infusion of
funds for timely completion of its project.
Set up in 2007 as a partnership firm by Vinod Agarwal and
Chandulal Patel, VP is developing a residential project, Welkin
Park, in Hyderabad. The Welkin Park project comprises five high-
rise towers, aggregating 243 residential flats. VP has entered a
real estate development agreement with the land owners and is,
hence, entitled to 55 per cent of the total flat inventory of the
project. As on April 30, 2011, it had sold 33 flats. VP is
estimated to report revenues of about INR85 million for 2010-11
(refers to financial year, April 1 to March 31).
=================
I N D O N E S I A
=================
GARUDA INDONESIA: Swings to IDR183.56 Billion Net Loss in Q1
------------------------------------------------------------
The Wall Street Journal reports that PT Garuda Indonesia said
Thursday it booked a IDR183.56 billion (about $21.5 million)
first-quarter net loss compared with an IDR18 billion net profit a
year earlier as higher oil prices hit its bottom line.
The Journal discloses revenue rose 48% to IDR5.2 trillion from
IDR3.5 trillion due to an increase in the number of passengers.
Garuda said the number of passengers increased by 44% in the first
quarter to 2.6 million from 1.8 million a year earlier.
The increase in revenue, however, was erased by higher operating
costs, which rose 42% to IDR5.4 trillion from IDR3.8 trillion, The
Journal says.
According to The Journal, Garuda Finance Director Elisa
Lumbantoruan said rising fuel prices led to a IDR258.7 billion
operating loss for the period as the government bans local
airlines from imposing fuel surcharges.
"Fuel cost contributed 36% to the company's total cost," The
Journal cited Garuda in a statement. The average cost of fuel
rose 34% to $0.832 per liter in the quarter from $0.62 per liter a
year earlier, it said.
The Journal notes that the company also attributed the drop in
income to the absence of a gain from debt restructuring, which
boosted the year-earlier result. The gain in the first quarter of
2010 was worth IDR147.3 billion.
Assets as of March 31, 2011, were IDR16.4 trillion, compared with
IDR13.67 trillion a year earlier.
Garuda, which received IDR1 trillion from the government in 2006
to help it keep flying, has been in debt restructuring talks since
2005. The Troubled Company Reporter-Asia Pacific reported on
Aug. 11, 2010, that the carrier completed the restructuring of
US$76 million of debts to state oil and gas company PT Pertamina.
Garuda had also completed a debt restructuring negotiation with
its biggest creditor, the state lender Bank Mandiri. In
January 2010, Bloomberg News said, the airline won bondholder
permission to restructure US$122 million of floating-rate notes.
The TCR-AP, citing The Financial Times, reported on Dec. 20, 2010,
that Garuda signed a deal with dozens of lenders to restructure
nearly US$500 million in debt. The FT said that the agreement,
inked in December 2010, in London after five years of tortuous
negotiations with the European Credit Agency and more than 20
commercial creditors, covers debts dating back 15 years.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
=========
J A P A N
=========
SHINSEI BANK: Swings to JPY42.65 Billion Profit in FY2010
---------------------------------------------------------
Kyodo News reports that Shinsei Bank Ltd said it returned to the
black in fiscal 2010 as its financial market and investment
banking operations performed well while bad loan losses in its
consumer finance business shrank.
According to Kyodo, the bank posted a group net profit of
JPY42.65 billion in the year ended March 31, 2011, a sharp
improvement from a year-earlier loss of JPY140.15 billion largely
resulting from losses at consumer finance subsidiaries.
Shinsei's group revenue declined 17.7% to JPY465.82 billion, Kyodo
discloses.
Kyodo says Shinsei returned to profitability after aggressively
increasing provisions for the repayment of overcharged interest on
past consumer lending and more careful extension of loans secured
by real estate collateral.
The financial market recovery also helped to boost the bank's
profits from proprietary trading operations, Kyodo notes.
As reported in the Troubled Company Reporter-Asia Pacific on
July 2, 2010, Kyodo News said the Financial Services Agency had
ordered Shinsei Bank to improve its operations for the second
consecutive year due to the lender's failure to achieve its profit
target for fiscal 2009. Shinsei was required to put forward a
business improvement plan that included a review of its wage
system by July 30, 2010, as the recipient of public funds failed
to meet its profit target agreed with the government for the year
that ended in March 2010. The FSA issued the order as Shinsei
remained in the red in fiscal 2009, with its earnings figures
falling 30% or more below the targets in its rehabilitation plan.
About Shinsei Bank
Shinsei Bank Ltd (TYO:8303) -- http://www.shinseibank.com/-- is a
Japan-based financial institution. The Bank operates mainly in
three business segments. The Banking segment provides savings
accounts services, foreign currency products and loan services,
merger and acquisition services, investment, domestic and foreign
exchange services, corporate revival services, debt guarantee
services and securities trading services, among others. The
Securities segment is involved in activities that include
securitization and debt underwriting and sale through its domestic
consolidated subsidiaries. The Fiduciary segment provides
products that encompass monetary claim trusts, securities trusts
and fund trusts through its domestic consolidated subsidiary such
as Shinsei Trust & Banking Co., Ltd. In addition, Shinsei Bank
provides investment trust management and consultation services,
credit collection services and others.
TOKYO ELECTRIC: Said to Book More Than JPY800BB Net Loss in FY2010
------------------------------------------------------------------
Kyodo News reports that Tokyo Electric Power Co plans to book a
group net loss of more than JPY800 billion for fiscal 2010 as it
gears up for dismantling its crisis-hit nuclear power plant,
sources close to the matter said Monday.
Kyodo relates that sources said TEPCO will include the cost of
decommissioning four reactors at the Fukushima Daiichi plant as an
extraordinary loss in its financial statement for the year ended
in March to be released Friday.
The company also plans to book some of the compensation costs for
the year as it has started making provisional damages payments to
residents and others affected by the nuclear accident, Kyodo
reports citing sources.
According to Kyodo, sources said the net loss could increase
further, depending on the amount of the compensation costs to be
included in the upcoming statement.
Meanwhile, Bloomberg News reports that credit-default swaps on
Tepco are trading at a three-week high after the government's
chief spokesman said public pressure may force lenders to write
off loans to the troubled utility.
According to Bloomberg, contracts protecting Tepco debt from
default jumped 145.4 basis points to 357.8 basis points on May 13,
the biggest increase since March 15 and the highest since
April 19, CMA prices show. Swaps on U.S. utilities average 145.7
basis points, according to data provider CMA, which is owned by
CME Group Inc. and compiles prices quoted by dealers in the
privately negotiated market, Bloomberg reports.
About TEPCO
Tokyo Electric Power Company (TEPCO) is the largest electric
power company in Japan and the largest privately owned electric
utility in the world. TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.
Bloomberg News said the utility known as Tepco is battling
radiation leaks at the Fukushima Dai-Ichi power plant north of
Tokyo after a March 11 earthquake and tsunami knocked out its
cooling systems, causing the biggest atomic accident in 25 years.
More than 50,000 households were forced to evacuate and Bank of
America Corp.'s Merrill Lynch estimates Tepco may face
compensation claims of as much as JPY11 trillion ($135 billion).
The company has JPY5 trillion in debt, making it the fourth-
biggest borrower among members of the Nikkei 225 stock average,
according to data compiled by Bloomberg.
TOKYO ELECTRIC: Government Urges Lenders to Share Burden
--------------------------------------------------------
Shigeru Sato and Toru Fujioka at Bloomberg News report that
Japan's government urged Tokyo Electric Power Co.'s creditors to
help support the utility, which is revising a plan to stabilize
its nuclear plant amid evidence the damage is worse than
previously considered.
"Our basic stance is to get cooperation from every stakeholder as
we try to minimize the burden for the Japanese public," Finance
Minister Yoshihiko Noda said at a news conference in Tokyo on
Tuesday, according to Bloomberg. "Tepco and financial
institutions should discuss this with these principles in mind."
Bloomberg relates that Mr. Noda spoke a day after the head of
Mitsubishi UFJ Financial Group Inc., Japan's biggest publicly
traded bank, criticized a top government official for suggesting
that lenders forgive loans made to Tokyo Electric before the
crisis. Writing off debt would prevent banks from providing the
company with new loans because of increased default risk, analyst
Yoshinobu Yamada told Bloomberg.
"Megabanks wouldn't be able to give fresh loans to Tepco without
full-fledged government guarantees" as they would have to
downgrade the quality of the utility's outstanding borrowings,
Mr. Yamada, a banking analyst at Deutsche Bank AG in Tokyo, told
Bloomberg.
Bloomberg notes that a group of Japanese lenders including
Mitsubishi UFJ, Sumitomo Mitsui Financial Group Inc. and Mizuho
Financial Group Inc. provided about JPY2 trillion ($25 billion) in
loans to Tepco, as the utility is known, after the record quake.
The government on May 13 unveiled a plan to provide aid to the
company to shield it from bankruptcy, says Bloomberg. Chief
Cabinet Secretary Yukio Edano said on the same day that lenders
may have to write off loans made to the company before the
disaster.
"We would like to continue asking our main lenders to provide us
with loans with lower interest," Bloomberg quotes Naoyuki
Matsumoto, a spokesman for Tepco, as saying. "We're preparing to
offer compensation to victims fairly and quickly, and government
aid is vital for doing so."
According to Bloomberg, Trade Minister Banri Kaieda said financial
institutions are likely to cooperate with Tepco's plans to
recompense victims of the disaster, which has sent radiation into
the air and sea and forced the evacuation of about 50,000
families. Mr. Kaieda added that it's "a matter between private
companies, and we're not in the position at this stage to tell
them directly what to do."
Financial Services Minister Shozaburo Jimi also said decisions on
whether to forgive loans made to Tepco should be left to the
utility and its creditors, Bloomberg adds.
About TEPCO
Tokyo Electric Power Company (TEPCO) is the largest electric
power company in Japan and the largest privately owned electric
utility in the world. TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.
Bloomberg News said the utility known as Tepco is battling
radiation leaks at the Fukushima Dai-Ichi power plant north of
Tokyo after a March 11 earthquake and tsunami knocked out its
cooling systems, causing the biggest atomic accident in 25 years.
More than 50,000 households were forced to evacuate and Bank of
America Corp.'s Merrill Lynch estimates Tepco may face
compensation claims of as much as JPY11 trillion ($135 billion).
The company has JPY5 trillion in debt, making it the fourth-
biggest borrower among members of the Nikkei 225 stock average,
according to data compiled by Bloomberg.
=====================
N E W Z E A L A N D
=====================
PIKE RIVER: Former Managers Hire Defense Lawyers
------------------------------------------------
Hayden Donnell at The New Zealand Herald reports that former Pike
River Coal managers have hired top defense lawyers to protect them
against accusations they caused the mine disaster that killed 29
of their colleagues.
The Herald says police and the Department of Labour have launched
investigations into what caused the explosion that ripped through
the Pike River mine on Nov. 19, 2011. A Royal Commission of
Inquiry into the disaster is set to begin again in July.
George Colligan, who trained staff at the mine for almost a year,
told Radio New Zealand he had hired top defence lawyer Greg King
to represent him and four colleagues because he was worried Pike
River Coal would blame them for the disaster, according to The
Herald.
"I've done nothing wrong. But when you're a one man operator
against a big company -- what do you do? Wait until you're
already in the corner. It's too late then," Mr. Colligan told
Radio New Zealand. "We can make them answer the questions now."
Neville Rockhouse, the mine's safety and training manager and
father of dead miner Ben Rockhouse, has also hired a criminal
defence lawyer, Radio New Zealand reported, the Herald says.
About Pike River
Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is
a New Zealand-based coal mining company. The Company, along with
its subsidiaries, is primarily engaged in the exploration,
evaluation, development and production of coal. It operates a
coal mine that lies under the Paparoa Ranges.
Pike River Coal Ltd, the company that operates the coal mine where
29 miners died in a series of explosions in November 2010, was
placed into receivership in December 2010. New Zealand Oil & Gas,
the company's largest shareholder, appointed accountants
PricewaterhouseCoopers as receivers. The company owed NZ$80
million to secured creditors BNZ and NZ Oil & Gas. Pike River
also owed another estimated NZ$10 million to NZ$15 million to
contractors, including some of the men who lost their lives in the
disaster.
REDGROUP RETAIL: Sale of Whitcoulls & Borders Stores Close
----------------------------------------------------------
Karyn Scherer at The New Zealand Herald reports that hundreds of
staff employed by Whitcoulls and Borders in New Zealand may soon
find out how much longer they are likely to have jobs.
The Herald says the administrators of the bookstores, owned by
REDgroup Retail Pty Ltd, are believed to be close to announcing a
new buyer that will return the company to New Zealand ownership.
According to the Herald, landlords have been told an announcement
about the New Zealand business is imminent, and it is believed all
the stores have conducted stocktakes over the past week.
The Herald notes that the publishing industry is rife with rumours
about who the new owner might be, with much of the speculation
centred on whether the chains' main rival, PaperPlus, has been
successful in bidding for the troubled group. Other suggestions
include The Warehouse, and former Whitcoulls' owner Graeme Hart.
While most staff are expected to retain their jobs, many
publishers believe the deal is likely to mean the closure of
Borders in New Zealand, the Herald says.
A spokeswoman for the Australian firm handling the administration,
Ferrier Hodgson, said Monday an announcement was possible within
the next 10 days, the Herald reports.
About REDgroup Retail
REDgroup Retail Pty, with 260 stores and brands including Angus &
Robertson and Whitcoulls, is the largest book retailer in
Australia and New Zealand. It acquired Borders stores in
Australia, New Zealand, and Singapore in 2008.
* * *
REDgroup Retail Pty Ltd. on Feb. 17, 2011, named Ferrier Hodgson
as voluntary administrator. The appointment comes less than a
day after Borders Group Inc. filed for bankruptcy in the U.S. and
began taking bids for 200 stores, according to Bloomberg News.
The REDgroup companies in Administration include:
* REDgroup Retail Pty Ltd
* Spine Holdco Pty Ltd
* A&R Australia Holdings Pty Ltd
* REDgroup Retail Administrative Services Pty Ltd
* Whitcoulls Group Holdings Pty Ltd
* Spine Newco Pty Ltd
* Angus & Robertson Pty Ltd
* Angus & Robertson Bookworld
* Calendar Club Pty Ltd
* WGL Retail Holdings Ltd
* Whitcoulls Group Ltd
* Calendar Club New Zealand Ltd
* Borders New Zealand Ltd
* REDgroup Online Ltd
=====================
P H I L I P P I N E S
=====================
BANCO FILIPINO: PDCI to Start Paying Depositors Next Month
----------------------------------------------------------
Sunstar reports that the Philippine Deposit Insurance Corp. will
start paying depositors of the insolvent Banco Filipino Savings
and Mortgage Bank whose bank deposits amount to PHP10,000 and
above by June, the government-owned insurer disclosed during
Tuesday's hearing of the House Committee on Banks and Financial
Intermediaries.
"We have already paid 60,000 small depositors and have received
claims of other depositors. We will start paying those with 10,000
and up balance by June," Sunstar quotes PDIC Executive Director
Cristina Orbeta as saying.
During the hearing, Sunstar relates, the Bangko Sentral ng
Pilipinas (BSP) asserted that the closure of BF was needed "to
save the banking system".
Sunstar says the bank, for its part, reiterated that its financial
troubles would have been prevented had the BSP and the Monetary
Board, the BSP's policy-making body, addressed its situation when
it asked for assistance way back in 2002.
In connection with the thrift bank's closure, BF and BSP, who
earlier traded criminal charges, are set to appear before the
Department of Justice on May 20, 2011, where both parties are
expected to submit their counter-affidavits.
The central bank closed the bank after its liabilities overwhelmed
its assets by PHP8.4 billion, and then filed charges against its
directors and officials. It also placed Banco Filipino under the
receivership of the state-run Philippine Deposit Insurance Corp.
to provide immediate relief to the bank's 177,652 depositors.
About Banco Filipino
Banco Filipino Savings & Mortgage Bank --
http://www.bancofilipino.com/-- was organized in 1964, offers
full domestic banking services, which are five main types,
namely: cash services; commercial services; loans; money market
services; and trust services. It started operations on July 9,
1964.
===========
T A I W A N
===========
KGI SECURITIES CO: Fitch Withdraws Individual 'C' Rating
--------------------------------------------------------
Fitch Ratings has affirmed KGI Securities Co. Ltd.'s Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'BBB', with Stable
Outlook.
At the same time, the agency has affirmed and withdrawn KGI's
Individual Rating, Support Rating and Support Rating Floor, as
these ratings are no longer considered by Fitch to be relevant to
the agency's coverage.
The ratings reflect KGI's strong position in Taiwan's securities
industry, its well-managed liquidity, adequate capitalization
(albeit lower than similarly rated peers) and management's track
record of earnings generations and execution ability. However, the
ratings also take into account KGI's small franchise in Asia among
regional investment banks, as well as the volatility inherent in
its risk profile due to often unpredictable capital markets.
A sustained improvement in earnings quality aided by the benefits
of its enlarged franchise would be considered a positive factor
for its Long-Term ratings. Conversely, any material weakening of
its capitalization as a result of increased risk-taking would be
negative from a credit perspective. However, Fitch believes the
latter prospect is remote given the company's conservative trading
strategy.
KGI reported a return-on-equity of 6.8% in 2010, driven mainly by
enhanced brokerage income as a result of its merger with Taiwan
Securities Co., Ltd. (TSC) in December 2009. Fitch expects KGI to
deliver reasonable earnings in 2011, underpinned by enhanced scale
advantages and its prudent trading strategy. KGI manages its
credit risk and market risk prudently, and incurred minimal credit
losses during the recent market downturn. Liquidity profile is
well-managed, as illustrated in its current ratio of 121% at end-
2010. KGI has maintained adequate capitalization since its merger
with TSC, although the level of capital adequacy ratios reported
are lower than the industry average. Fitch expects internal
capital generations to gradually lift KGI's capitalization ratios.
KGI was established in 1988, and is one of Taiwan's largest and
most diversified securities companies (both in terms of geography
and product mix). KGI's 8% brokerage market share in 2010 ranked
second only to Yuanta Securities' 11.3%.
KGI's ratings:
-- Long-Term Foreign Currency IDR affirmed at 'BBB', Outlook
Stable
-- Short-term foreign currency IDR affirmed at 'F3'
-- National Long-term Rating affirmed at 'A+(twn)'; Outlook
Stable
-- National Short-term Rating affirmed at 'F1(twn)'
-- Individual Rating affirmed at C'; rating withdrawn
-- Support Rating affirmed at '5'; rating withdrawn
-- Support Rating Floor affirmed at 'No Floor'; rating
withdrawn
===============
T H A I L A N D
===============
CIMB THAI BANK: Fitch Affirms Individual Rating at 'D'
------------------------------------------------------
Fitch Ratings has upgraded CIMB Thai Bank Public Company Limited's
Long-Term Foreign Currency Issuer Default Rating (IDR) to 'BBB'
from 'BBB-'. The Outlook is Stable.
The upgrade primarily reflects CIMBT's stronger strategic and
operational integration with CIMB Bank Berhad (CIMB;
'BBB+'/Stable) of Malaysia, and, to a lesser extent, the
improvement in the bank's credit profile over the past 12-18
months under more benign operating conditions, allowing for a
narrower notching differential between the two banks. The parent's
expansion strategy, which is focused on improving its regional
presence and franchise, includes growing the contribution from and
increasing the business diversity of its Thai subsidiary. This has
reinforced Fitch's view on support from the parent for CIMBT.
However, such expansion consumes capital and resources at the
parent level and will take longer time to reap the benefits, which
was reflected in the Outlook revision to Stable from Positive on
May 9, 2011.
CIMB has also played a key role in CIMBT's transformation
programme, balance sheet clean- up and the bank's capital
injection in late 2010 which should support CIMBT's growth in the
medium term amid an improving economic environment, and provide a
stronger buffer against market volatility.
CIMBT's key performance metrics continued to improve from their
trough in 2007-8 when the bank suffered from large one-time losses
from CDO investments, with the returns on assets and equity
increasing to 0.8% and 9.8% respectively at end-March 2011 (end-
2008: 0% and 0.1%). CIMBT's asset quality also improved as a
result of the deconsolidation of non-performing loans (NPL)
following the sale of its asset management company to CIMB Group
in late 2010. The NPL and loan loss coverage (LLR) ratios improved
to 2.6% and 100.5% at end-March 2011 (end-2009: 14.5% and 63.8%).
The bank's financial position was also strengthened by the THB3bn
rights issue in late-2010, with the Tier 1 and total capital
ratios improving to about 8.45% and 14%, respectively, at end-
March 2011 (end-2009: 6% and 12%). Fitch expects CIMBT's
profitability measures to improve further in 2011-12, boosted by
continued loan growth and higher fee-based income.
The Support Rating of '2' reflects CIMB's near full ownership
(93.15%) and management control of CIMBT as well as its close name
association. Given CIMB's reputation and resources, Fitch believes
there is a high probability that support would be forthcoming, if
needed, from its parent. Changes in CIMB's shareholding or support
would affect CIMBT's Support Rating and notching differential.
CIMBT's Individual 'D' Rating may be upgraded on account of
sustainable improvements in profitability, asset quality and
capital.
CIMBT's hybrid upper tier 2 debt rating is notched two levels
below the bank's Long-Term IDR and National rating to reflect
commitment of support from CIMB. Despite loss absorption
mechanisms, if the bank fails on the profit test, triggering
optional deferral, CIMB has strongly indicated that it would
support coupon payment, if necessary. In the event that the bank's
capital adequacy ratio falls below 0%, or if Thailand's central
bank intervenes, this would result in mandatory deferral in which
case there will be no coupon payment under any circumstances.
However, Fitch currently considers the risk of this as low.
CIMBT, formerly known as Bank Thai (BT), was formed in 1998 as a
result of a government-initiated merger of several defunct
financial institutions. The Financial Institutions Development
Fund (FIDF) acquired a majority stake in BT in 2000, which was
later reduced to 48.98%. In November 2008, CIMB acquired the
FIDF's stake and subsequently made a tender offer for the
remaining shares.
CIMBT's ratings:
-- Long-Term Foreign Currency IDR upgraded to 'BBB' from
'BBB-'; Outlook Stable
-- Short-Term Foreign Currency IDR affirmed at 'F3'
-- Individual Rating affirmed at 'D'
-- Support Rating affirmed at '2'
-- National Long-term rating upgraded to 'AA-(tha)' from
'A+(tha)'; Outlook Stable
-- National Short-term rating upgraded to 'F1+(tha)' from
'F1(tha)'
-- Upper tier 2 debt upgraded to 'A(tha)' from 'A-(tha)'
=============
V I E T N A M
=============
HOANG ANH: Fitch Assigns Final LT 'B' Rating to US$90MM Sr. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Hoang Anh Gia Lai Joint Stock Company's
USD90m senior notes a final Long-term 'B' rating and a Recovery
Rating of 'RR4'.
This follows the receipt of documents conforming to information
already received. The final rating is in line with the expected
rating assigned on May 3, 2011.
===============
X X X X X X X X
===============
* S&P's Global Corporate Defaults List Has 15 So Far
----------------------------------------------------
Puerto Rico-based yellow pages publisher Caribe Media Inc. filed
for bankruptcy protection, raising the 2011 global corporate
default tally to 15, said an article published May 13 by Standard
& Poor's Global Fixed Income Research. Ten of this year's
defaults were based in the U.S., two were based in New
Zealand, and one each was based in Canada, the Czech Republic, and
Russia, according to the article, titled "Global Corporate Default
Update (May 6 - 12, 2011) (Premium)."
By comparison, 35 global corporate issuers had defaulted by this
time in 2010. Of these defaulters, 24 were based in the U.S., two
in Europe, three in the emerging markets, and six in the other
developed region (Australia, Canada, Japan, and New Zealand).
Six of this year's defaults were due to distressed exchanges and
five were due to missed interest or principal payments--both among
the top reasons for default in 2010. Of the remaining four, two
issuers defaulted after they filed for bankruptcy, another had its
banking license revoked by its country's central bank, and the
fourth was forced into liquidation as a result of regulatory
action.
Of the defaults in 2010, 28 defaults resulted from missed interest
or principal payments, 25 resulted from Chapter 11 and foreign
bankruptcy filings, 23 from distressed exchanges, three from
receiverships, one from regulatory directives, and one from
administration.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
June 6, 2011
AMERICAN BANKRUPTCY INSTITUTE
Canadian-American Cross-Border Insolvency Symposium
Fairmont Royal York, Toronto, Ont.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Mich.
Contact: http://www.abiworld.org/
July 21-24, 2011
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 27-30, 2011
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Sanctuary at Kiawah Island, Kiawah Island, S.C.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 4-6, 2011
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Tampa Convention Center, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. __, 2011
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
Dublin, Ireland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 3-5, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Grand Hyatt Atlanta, Atlanta, Ga.
Contact: http://www.turnaround.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
November 1-3, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Westin Copley Place, Boston, Mass.
Contact: http://www.turnaround.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott Chicago, Chicago, Ill.
Contact: http://www.turnaround.org/
October 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Valerie 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
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TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***