/raid1/www/Hosts/bankrupt/TCRAP_Public/110530.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
Monday, May 30, 2011, Vol. 14, No. 105
Headlines
A U S T R A L I A
DENMAC FORD: Closes Business; 120 Workers Lost Jobs
C H I N A
KAISA GROUP: S&P Lowers CCR to 'B+' on Refinancing Risks
H O N G K O N G
ALNERY NO. 131: Lam and Boswell Step Down as Liquidators
ALNERY NO. 132: Lam and Boswell Step Down as Liquidators
ASIAINFO H.K.: Creditors' Proofs of Debt Due June 28
BETTER WEALTH: Placed Under Voluntary Wind-Up Proceedings
BRAVURA ENTERPRISES: Lam and Boswell Step Down as Liquidators
FORMAX INDUSTRIAL: Creditors' Proofs of Debt Due June 15
KENSLAND REALTY: Briscoe and Hill Step Down as Liquidators
LEADKEEN INDUSTRIAL: Members and Creditors to Meet on June 10
METZLER INTERNATIONAL: Members and Creditors to Meet on June 10
MOULIN GLOBAL: Members and Creditors to Meet on June 10
MOULIN GLOBAL EYECARE: Members and Creditors to Meet on June 10
MOULIN GLOBAL EYECARE TRADING: Meeting Slated for June 10
N.G.A. OPTICAL: Members and Creditors to Meet on June 10
SUZUYA INTERNATIONAL: Court to Hear Wind-Up Petition on June 29
WALITOYS & GARMENT: Court to Hear Wind-Up Petition on June 8
I N D I A
A.N.E. INDUSTRIES: CRISIL Assigns 'B-' to INR125MM Cash Credit
ABDOS LABTECH: CRISIL Cuts Rating on INR87MM Term Loan to 'B'
CROSSLAY REMEDIES: CRISIL Reaffirms 'D' Rating on INR40MM Loan
ECP INDUSTRIES: CRISIL Reaffirms 'C' Rating on INR56MM Cash Credit
GOVAN INDUSTRIES: CRISIL Assigns 'B' Rating to INR63.5MM LT Loan
IMS MERCANTILES: CRISIL Assigns 'BB-' Rating to INR30MM LT Loan
JAI DURGA: CRISIL Assigns 'BB' Rating to INR120MM Cash Credit
JEWEL OVERSEAS: CRISIL Assigns 'BB-' Rating to INR100 Cash Credit
KISAN AGRO: CRISIL Assigns 'B' Rating to INR85 Mil. Cash Credit
KISAN PROTEINS: CRISIL Rates INR95 Million Cash Credit at 'B'
LOTUS CORPORATION: CRISIL Rates INR350MM Rupee Term Loan at 'BB+'
MARY MATHA: CRISIL Rates INR138.30 Million Long-Term Loan at 'D'
MATA SHEELA: CRISIL Rates INR211.40 Million Long-Term Loan at 'D'
NUCON INDUSTRIES: CRISIL Assigns 'B' Rating to INR9.2MM Loan
R.R. THULASI: CRISIL Assigns 'BB-' Rating to INR20MM Cash Credit
SOMA ISOLUX SURAT: CRISIL Reaffirms 'BB' Rating on INR1.81MM Loan
SOMA ISOLUX: CRISIL Reaffirms 'BB+' Rating on INR9.78BB Term Loan
I N D O N E S I A
ALUCO (P.T.): Moody's Assigns 'B3' Corporate Family Rating
J A P A N
JLOC XXXIII: Moody's Changes Ratings for Class B Through D Certs.
JMAC4 TRUST: Moody's Downgrades Rating of Class C Trust Certs.
L-JAC 7: S&P Lowers Ratings on 4 Classes of Certificates to 'D'
N E W Z E A L A N D
AMI INSURANCE: Tower Ltd Mulls AMI Purchase
BRIDGECORP LTD: Ex-Director to Stand Trial in 2012 on Tax Charges
REDGROUP RETAIL: To Close Three Whitcoulls Stores in Christchurch
S R I L A N K A
MULTI FINANCE CO: Fitch Assigns 'B+(lka)' National LT Rating
- - - - -
=================
A U S T R A L I A
=================
DENMAC FORD: Closes Business; 120 Workers Lost Jobs
---------------------------------------------------
The Receivers and Managers of Denmac Ford Pty Ltd and Bremer Ford
Pty Ltd announced Friday the immediate closure of both businesses.
Deloitte partners Richard Hughes and John Greig were appointed as
joint and several Receivers and Managers of both businesses on
May 11, 2011.
Mr. Hughes confirmed that a thorough investigation of both
businesses' financial performance had been carried out to
determine if the operation could continue while a buyer was
sought.
Mr. Hughes said: "Unfortunately, there was not sufficient cash
flow to sustain the business, even in the short term. Despite our
best efforts, we couldn't find a way to keep the business trading
while we carried out a sale process, which could have taken some
time to complete."
"The harsh reality is that given the ongoing financial losses
incurred we would have struggled to justify the ongoing trading
for the benefit of creditors and we were left with no alternative
but to close the doors and dismiss most of the 120 members of
staff."
"Whilst we are preparing to sell business assets, for a short
period, the business assets are still available for sale in one
line, however, interested parties will need to conclude
negotiations rapidly if this is to be a possibility. However, the
business will not be sold as a going concern."
"The Receivers and Managers are working to minimize the impact of
the closures on employees and other stakeholders, including
investigating options to ensure employee entitlements are payable
in full and as soon as practicable," Deloitte said.
Ford Motor Company has confirmed that customers that purchased new
Ford vehicles from the business, both before and after the
appointment of receivers will remain covered by the Ford warranty.
Denmac Ford had been an established Ford dealer in Brisbane for
over 30 years, servicing Brisbane's south western suburbs with
sales and service locations at Darra and a used car sales location
at Moorooka.
Operating over three sites with its head office, sales, service
and parts located at 2580 Ipswich Road, Darra. The other two
showrooms are in Indooroopilly (34 Coonan Street) and Moorooka
(1029 Ipswich Road). Bremer Ford Pty Ltd offers sales, service
and parts from its 36 Brisbane Road, Ebbw Vale location.
=========
C H I N A
=========
KAISA GROUP: S&P Lowers CCR to 'B+' on Refinancing Risks
--------------------------------------------------------
Standard & Poor's Ratings Services lowered the long-term corporate
credit rating on China-based real estate developer Kaisa Group
Holdings Ltd. to 'B+' from 'BB-'. The outlook is stable. "At the
same time, we lowered the issue rating on the company's
outstanding senior unsecured notes to 'B' from 'B+'. We also
affirmed the 'cnBB' and 'cnBB-' Greater China credit scale ratings
on Kaisa and its outstanding notes," S&P related.
"We lowered the ratings on Kaisa to reflect our view that the
company's aggressive debt issuance in the past six months has
heightened its credit risks," said Standard & Poor's credit
analyst Frank Lu. "In our base-case scenario, Kaisa's adjusted
debt-to-EBITDA ratio will increase to more than 4.0x by the end of
2011, compared with 3.1x at the end of 2010."
Kaisa's increased leverage and higher interest expenses related to
the funding costs of its bonds will likely pressure cash flows if
property sales slip. The downturn in the property market has
increased this risk. Since December 2010, the company has raised
Chinese renminbi (RMB) 5.45 billion in convertible bonds and notes
denominated in renminbi and U.S. dollars. In addition, it
issued US$350 million notes in April 2010.
"We believe that Kaisa's target of RMB18.55 billion in property
sales for 2011 is aggressive and unlikely to be attainable. Our
view factors in the weakening of the property market and the
company's reliance on property launches in new markets to achieve
its budget. In addition, we note that the company has a limited
execution track record outside its home market of Guangdong. In
the first four months of 2011, Kaisa's property sales performance
was mixed, meeting 12.4% of its full-year target," S&P noted.
Kaisa's debt issuance has increased its refinancing risks because
nearly RMB7.80 billion of its total debt will come due in 2014 and
2015. This high concentration of debt maturities could make the
company vulnerable to any unfavorable credit market conditions.
Kaisa's debt issues have added some buffer to its liquidity.
However, the company has large land premiums due and construction
expenses that are substantially higher in 2011 than last year.
Onshore construction funding remains tight.
These weaknesses are somewhat tempered by Kaisa's large and low-
cost land bank and its established market position in Shenzhen.
The company has made some progress in securing urban redevelopment
projects in Shenzhen and Guangdong.
"The stable outlook reflects our expectation that Kaisa will
maintain adequate liquidity while pursuing high growth. We expect
the company to achieve a reasonable level of contract sales both
from Guangdong province and new markets," said Mr. Lu.
"We may lower the rating if Kaisa's property sales or margins are
materially lower than our projections and debt-funded expansion
continues to be more aggressive than we expect, such that its
EBITDA interest coverage is less than 2.5x and its debt-to-EBITDA
ratio is more than 5x," S&P related.
The rating has limited upside at the moment. "We may raise the
rating if Kaisa demonstrates disciplined and consistent business
strategy and financial risk management, maintains its financial
strength while undergoing aggressive expansion, and significantly
improves its geographical diversification," S&P added.
================
H O N G K O N G
================
ALNERY NO. 131: Lam and Boswell Step Down as Liquidators
--------------------------------------------------------
Rainier Hok Chung Lam and Anthony David Kenneth Boswell stepped
down as liquidators of Alnery No. 131 Limited on May 23, 2011.
ALNERY NO. 132: Lam and Boswell Step Down as Liquidators
--------------------------------------------------------
Rainier Hok Chung Lam and Anthony David Kenneth Boswell stepped
down as liquidators of Alnery No. 132 Limited on May 23, 2011.
ASIAINFO H.K.: Creditors' Proofs of Debt Due June 28
----------------------------------------------------
Creditors of Asiainfo H.K. Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by June 28,
2011, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on May 18, 2011.
The company's liquidators are:
Natalia Seng Sze Ka Mee
Cheng Pik Yuk
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
BETTER WEALTH: Placed Under Voluntary Wind-Up Proceedings
---------------------------------------------------------
At an extraordinary general meeting held on May 19, 2011,
creditors of Better Wealth Development Limited resolved to
voluntarily wind up the company's operations.
The company's liquidators are:
Philip Brendan Gilligan
7th Floor, Alexandra House
18 Chater Road
Central, Hong Kong
BRAVURA ENTERPRISES: Lam and Boswell Step Down as Liquidators
-------------------------------------------------------------
Rainier Hok Chung Lam and Anthony David Kenneth Boswell stepped
down as liquidators of Bravura Enterprises Limited on May 23,
2011.
FORMAX INDUSTRIAL: Creditors' Proofs of Debt Due June 15
--------------------------------------------------------
Creditors of Formax Industrial (Hong Kong) Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by June 15, 2011, to be included in the company's dividend
distribution.
The company's liquidators are:
Lau Wu Kwai King, Lauren
Yuen Tsz Chun, Frank
c/o Messrs. KLC Kennic Lui & Co.
5th Floor, Ho Lee Commercial Building
38-44 D'Aguilar Street
Central, Hong Kong
KENSLAND REALTY: Briscoe and Hill Step Down as Liquidators
----------------------------------------------------------
Stephen Briscoe and Nicholas Timothy Cornforth Hill stepped down
as liquidators of Kensland Realty Limited on Aug. 26, 2010.
The liquidators can be reached at:
Stephen Briscoe
Nicholas Timothy Cornforth Hill
602 The Chinese Bank
Building, 61-65 Des Voeux Road
Central, Hong Kong
LEADKEEN INDUSTRIAL: Members and Creditors to Meet on June 10
-------------------------------------------------------------
Members and creditors of Leadkeen Industrial Limited will hold a
meeting on June 10, 2011, at 9:30 a.m., at the office of FTI
Consulting (Hong Kong) Limited, 14th Floor, The Hong Kong Club
Building, 3A Chater Road, Central in Hong Kong.
At the meeting, the members and creditors will be asked to
consider the resignation of Desmond Chung Seng Chiong as
liquidator and the appointment of John Howard Batchelor as one of
the joint and several liquidators of the company.
METZLER INTERNATIONAL: Members and Creditors to Meet on June 10
---------------------------------------------------------------
Members and creditors of Metzler International (Asia) Limited will
hold a meeting on June 10, 2011, at 2:30 p.m., at the office of
FTI Consulting (Hong Kong) Limited, 14th Floor, The Hong Kong Club
Building, 3A Chater Road, Central in Hong Kong.
At the meeting, the members and creditors will be asked to
consider the resignation of Desmond Chung Seng Chiong as
liquidator and the appointment of John Howard Batchelor as one of
the joint and several liquidators of the company.
MOULIN GLOBAL: Members and Creditors to Meet on June 10
-------------------------------------------------------
Members and creditors of Moulin Global Eyecare Holdings Limited
will hold a meeting on June 10, 2011, at 10:00 a.m., at the office
of FTI Consulting (Hong Kong) Limited, 14th Floor, The Hong Kong
Club Building, 3A Chater Road, Central in Hong Kong.
At the meeting, the members and creditors will be asked to
consider the resignation of Desmond Chung Seng Chiong as
liquidator and the appointment of John Howard Batchelor as one of
the joint and several liquidators of the company.
MOULIN GLOBAL EYECARE: Members and Creditors to Meet on June 10
---------------------------------------------------------------
Members and creditors of Moulin Global Eyecare Manufacturing
Limited will hold a meeting on June 10, 2011, at 3:30 p.m., at the
office of FTI Consulting (Hong Kong) Limited, 14th Floor, The Hong
Kong Club Building, 3A Chater Road, Central in Hong Kong.
At the meeting, the members and creditors will be asked to
consider the resignation of Desmond Chung Seng Chiong as
liquidator and the appointment of John Howard Batchelor as one of
the joint and several liquidators of the company.
MOULIN GLOBAL EYECARE TRADING: Meeting Slated for June 10
---------------------------------------------------------
Members and creditors of Moulin Global Eyecare Trading Limited
will hold a meeting on June 10, 2011, at 11:00 a.m., at the office
of FTI Consulting (Hong Kong) Limited, 14th Floor, The Hong Kong
Club Building, 3A Chater Road, Central in Hong Kong.
At the meeting, the members and creditors will be asked to
consider the resignation of Desmond Chung Seng Chiong as
liquidator and the appointment of John Howard Batchelor as one of
the joint and several liquidators of the company.
N.G.A. OPTICAL: Members and Creditors to Meet on June 10
--------------------------------------------------------
Members and creditors of N.G.A. Optical Manufatory Co. Limited
will hold a meeting on June 10, 2011, at 4:30 p.m., at the office
of FTI Consulting (Hong Kong) Limited, 14th Floor, The Hong Kong
Club Building, 3A Chater Road, Central in Hong Kong.
At the meeting, the members and creditors will be asked to
consider the resignation of Desmond Chung Seng Chiong as
liquidator and the appointment of John Howard Batchelor as one of
the joint and several liquidators of the company.
SUZUYA INTERNATIONAL: Court to Hear Wind-Up Petition on June 29
---------------------------------------------------------------
A petition to wind up the operations of Suzuya International
(H.K.) Company Limited will be heard before the High Court of Hong
Kong on June 29, 2011, at 9:30 a.m.
The Petitioner's solicitors are:
Wong, Hui & Co
5th Floor, Wai Fung Plaza
664 Nathan Road, Mongkok
Kowloon, Hong Kong
WALITOYS & GARMENT: Court to Hear Wind-Up Petition on June 8
------------------------------------------------------------
A petition to wind up the operations of Walitoys & Garment Limited
will be heard before the High Court of Hong Kong on June 8, 2011,
at 9:30 a.m.
Kader Industrial Company Limited filed the petition against the
company on March 3, 2011.
The Petitioner's solicitors are:
Szeto Virginia & Co
Unit 903-4, 9/F, Yip Fung Building
2-18 D'Aguilar Street
Central, Hong Kong
=========
I N D I A
=========
A.N.E. INDUSTRIES: CRISIL Assigns 'B-' to INR125MM Cash Credit
--------------------------------------------------------------
CRISIL has assigned its 'B-/Negative/P4' ratings to the bank
facilities of A.N.E. Industries Pvt Ltd.
Facilities Ratings
---------- -------
INR125.0 Million Cash Credit Limit B-/Negative (Assigned)
INR200.0 Million Bank Guarantee P4 (Assigned)
The ratings reflect ANEIPL's weak liquidity and customer and
geographic concentration in its revenue profile. These rating
weaknesses are partially offset by ANE's moderate financial risk
profile, marked by moderate net worth, low gearing, and healthy
debt protection metrics, and its promoters' extensive experience
in the mineral excavation business.
Outlook: Negative
CRISIL believes that ANEIPL will continue to face liquidity
pressures over the medium term because its cash accruals are
expected to be tightly matched with its large debt obligations and
also because of its large working capital requirements. Also, the
company will remain dependent on the sanction of the proposed
enhancement in its working capital limits. The ratings may be
downgraded if ANEIPL's liquidity weakens further, because of
delays in increasing its revenues and cash accruals. Conversely,
the outlook may be revised to 'Stable' if ANEIPL generates more-
than-expected cash accruals or in case of fresh equity infusion,
thereby improving its liquidity.
About A.N.E. Industries
ANEIPL was set up in 2003 by Mr. Soham Singh of Punjab. The
company executes open cast mining contracts involving removal of
over burden and mineral excavation. Prior to ANEIPL, he had
promoted a firm called National Mining Company, based in Assam. It
was engaged in similar activities. The firm was sold in 2001-02
(refers to financial year, April 1 to March 31).
The company owns around 134 heavy earth moving machinery
equipment, including over 100 dumpers, 4 front-end loaders, 13
excavators, and 7 bulldozers. ANEIPL mainly undertakes projects
floated by Coal India Ltd and its various subsidiaries.
ANE reported a profit after tax (PAT) of INR55 million on net
sales of INR546 million for 2009-10, as against a PAT of INR72
million on net sales of INR606 million for 2008-09.
ABDOS LABTECH: CRISIL Cuts Rating on INR87MM Term Loan to 'B'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Abdos Labtech Pvt Ltd to 'B/Stable' from 'BB-/Stable'.
Facilities Ratings
---------- -------
INR16.0 Million Cash Credit Limit B/Stable (Downgraded from
'BB-/Stable')
INR87.0 Million Term Loan B/Stable (Downgraded from
'BB-/Stable')
The rating downgrade reflects CRISIL's belief that ALPL's credit
risk profile will remain below-average over the medium term, as a
result of pressure on its profitability and cash accruals. ALPL's
operating profitability has been low in first two years of
operations on account of delay in stabilization of operations at
its new unit and less-than-expected offtake. For 2010-11 (refers
to financial year, April 1 to March 31), ALPL has incurred a net
loss, estimated at INR20.8 million; the company incurred a net
loss of INR12.1 million in 2009-10 as well. This has led to a
significant deterioration in its net worth despite an equity
infusion of INR25 million by the promoters in 2010-11. ALPL's net
worth is estimated at INR12.41 million as on March 31, 2011.
Moreover, ALPL's liquidity has weakened because of an increase in
its working capital requirements as a result of delayed
realizations from customers and accumulation of inventory. This
made the company contract bank loans, in addition to unsecured
loans from promoters, to service its maturing debt of INR11.6
million in 2010-11. The downgrade also reflects CRISIL's belief
that ALPL's liquidity will remain weak over the medium term, as
its cash accrual is expected to be barely sufficient to meet its
maturing term debt obligations.
The ratings continue to reflect ALPL's limited track record in the
plastic labware industry, small scale of operations, and exposure
to competition from established players. These rating weaknesses
are partially offset by the benefits that ALPL derives from the
diversified industry experience of its promoter, the Abdos group,
and the managerial support it gets from its group entities.
Outlook: Stable
CRISIL believes that ALPL will benefit over the medium term from
the stabilization of operations at its recently set up unit and
its new marketing initiatives. The outlook may be revised to
'Positive' if ALPL achieves significantly more-than-expected
increase in revenues and profitability, resulting in an
improvement in its business and financial risk profiles.
Conversely, the outlook may be revised to 'Negative' if lower-
than-expected revenues and profitability, or a larger-than-
expected debt- funded capital expenditure programme further
constrains ALPL's debt servicing ability.
About Abdos Labtech
ALPL was incorporated in 2008 and promoted by the Kolkata (West
Bengal)-based Abdos group. ALPL manufactures plastic labware and
trades in medical equipment. ALPL's manufacturing facility is
located in the excise and income-tax exempt region of Roorkee
(Uttarakhand). ALPL commenced commercial production in
September 2009 by installing three moulds imported from Europe.
The Abdos group has multiple business interests including
distributorship of chemicals, specialty packaging, manufacturing
of fast-moving consumer goods products, and logistics services for
electronic durable manufacturers.
ALPL's net loss and net sales are estimated at INR20.9 million and
INR37 million respectively for 2010-11; it reported a net loss of
INR12.2 million on net sales of INR34.1 million for 2009-10.
CROSSLAY REMEDIES: CRISIL Reaffirms 'D' Rating on INR40MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Crosslay Remedies Ltd's
continue to reflect instances of delay by Crosslay in servicing
its debt. The company has been delaying repayment of its term
loan by 75-80 days over the 12 months through March 2011 because
of weak liquidity.
Facilities Ratings
---------- -------
INR40.0 Million Working Capital D (Reaffirmed)
Demand Loan
INR960.0 Million Term Loan D (Reaffirmed)
INR50.0 Million Bank Guarantee P5 (Reaffirmed)
Crosslay's financial risk profile is marked by high gearing and
weak debt protection metrics. The company, however, benefits from
the vast experience of its promoters and the modern infrastructure
of its hospital.
Update
Crosslay's operating revenues are estimated to have more than
doubled in 2010-11(refers to financial year, April 1 to March 31)
over that of 2009-10. The company reported, on provisional basis,
operating revenues of INR560 million in 2010-11 as against INR242
million in 2009-10. Crosslay has recently been added on the panel
of Employees' State Insurance scheme and Central Government Health
Scheme, which are expected to improve the occupancy rate of the
hospital. In order to support this, there has been an increase in
operational beds to 300 as on March 31, 2011, from 100 in 2009-10.
The extent of improvement in Crosslay's liquidity, owing to an
increase in the occupancy rate over the medium term, will be a key
rating sensitivity factor.
For 2009-10, Crosslay reported a net loss of INR239 million on net
sales of INR242 million as against a net loss of INR85.4 million
on net sales of INR31.3 million for 2008-09.
About Crosslay Remedies
Crosslay, incorporated in 2002, is part of Pushpanjali Healthcare
group. Dr. Vinay Aggarwal, chairman and managing director, heads
the company. The company has set up a 400-bed (300 beds
operational currently) multi-specialty tertiary care hospital by
the name of Pushpanjali Crosslay Hospital in Ghaziabad (Uttar
Pradesh). The hospital commenced operations in June 2008. It
specialises in neurology, orthopaedic surgery, gynaecology,
oncology, and cardiology. Crosslay also runs Pushpanjali Family
Clinic, a family clinic in Ghaziabad that provides primary care
services.
ECP INDUSTRIES: CRISIL Reaffirms 'C' Rating on INR56MM Cash Credit
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of ECP Industries Ltd
continue to reflect past delays by ECP in servicing its term loan,
on account of weak liquidity. The ratings also reflect ECP's
limited scale of operations, and weak financial risk profile,
marked by weak debt protection metrics. These rating weaknesses
are partially offset by the benefits that ECP derives from its
promoters' experience.
Facilities Ratings
---------- -------
INR56 Million Cash Credit C (Reaffirmed)
INR15 Million Bank Guarantee P4 (Reaffirmed)
INR12 Million Letter of Credit P4 (Reaffirmed)
Incorporated in 1983, ECP (formerly, Eastern Cylinders Pvt Ltd)
manufactures domestic liquefied petroleum gas (LPG) cylinders,
with capacity to produce 450,000 cylinders per annum. The company
was renamed in 1998. ECP received ISO 9002 certification in 1986.
Its product profile includes LPG cylinders, LPG pressure
regulators, and industrial valves. The company manufactures LPG
cylinders of various capacities, ranging from small domestic
cylinders to large commercial containers, conforming to various
specifications such as BS 5045, DOT 4BA, ISO 4706, and IS 3196.
ECP reported a profit after tax (PAT) of INR2.87 million on net
sales of INR264 million for 2009-10 (refers to financial year,
April 1 to March 31) against a PAT of INR 0.57 million on net
sales of INR 182 million for 2008-09.
GOVAN INDUSTRIES: CRISIL Assigns 'B' Rating to INR63.5MM LT Loan
----------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of Govan Industries (India) Pvt Ltd.
Facilities Ratings
---------- -------
INR63.50 Million Long-Term Loan B/Stable (Assigned)
INR3.00 Million Cash Credit B/Stable (Assigned)
INR36.10 Million Proposed LT Bank B/Stable (Assigned)
Loan Facility
INR24.50 Million Export Packing Credit P4 (Assigned)
INR22.50 Million Foreign Bill Purchase P4 (Assigned)
INR17.50 Million Letter of Credit/Bank P4 (Assigned)
Guarantee
The ratings reflect Govan's below-average financial risk profile,
marked by small net worth, aggressive gearing, and below-average
debt protection metrics, its large working capital requirements,
and its small scale of operations. These rating weaknesses are
partially offset by Govan's established position in the niche
explosion-protection electrical equipment industry.
Outlook: Stable
CRISIL believes that Govan will continue to benefit from its niche
product portfolio and established customer relationships, over the
medium term. The outlook may be revised to 'Positive' in case
Govan's financial risk profile improves because of substantial
improvement in the company's gearing as a result of equity
infusion, or increase in its operating margin and realizations.
Conversely, the outlook may be revised to 'Negative' in case of
significant delays in realization of receivables or larger-than-
expected debt.
About Govan Industries
Based in Oragadam (Chennai), Govan manufactures electrical and
instrumentation equipment such as junction boxes, light fittings,
welding receptacles, control stations, and panels that are used in
hazardous and non-hazardous areas. These products have
applications in diverse industries such as oil and gas,
pharmaceuticals, marine, petrochemicals, and chemical fertilizers.
The niche strength of Govan lies in its capabilities to
manufacture explosion protection electrical equipment for
installation in hazardous areas. The forte of the company is in
manufacturing a full range of Flame proof (Exd), increased safety
(Exe), Dust excluding ignition proof (DIP) and pressurized (Exp)
electrical equipments. The products are certified by AS/NZS
9001:2000 and BIS. During the year 2000, the current promoters of
the company Mr. Zafaruddin Abdus Salam and Mr. Nabeel Zafar Salam
took over the global operations of Govan from the erstwhile
promoters.
Govan reported net losses of INR11 million on net sales of
INR77 million for 2009-10 (refers to financial year, April 1 to
March 31) as against a net losses of INR10 million on net sales of
INR69 million for 2008-09.
IMS MERCANTILES: CRISIL Assigns 'BB-' Rating to INR30MM LT Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of IMS Mercantiles Pvt Ltd.
Facilities Ratings
---------- -------
INR40.0 Million Cash Credit Limit BB-/Stable (Assigned)
INR30.0 Million Proposed Long-Term BB-/Stable (Assigned)
Bank Loan Facility
INR70.0 Million Letter of Credit P4+ (Assigned)
The ratings reflect IMS's susceptibility to risks related to the
commodity nature of its business and average financial risk
profile, marked by average capital structure, debt protection
metrics and small networth, and large working capital
requirements. These rating weaknesses are partially offset by
IMS's established market position in trading electronic
accessories.
Outlook: Stable
CRISIL believes that IMS will continue to maintain its established
market position in trading electronic accessories, over the medium
term. Its financial risk profile is, however, expected to be
constrained by its average debt protection metrics. The outlook
may be revised to 'Positive' if IMS's operating margin improves,
resulting in an improvement in its debt protection metrics, and it
significantly scales up its operations. Conversely, the outlook
may be revised to 'Negative' if the company's financial risk
profile deteriorates because of an increase in working capital
requirements or larger-than-expected debt-funded capital
expenditure.
About IMS Mercantiles
IMS was incorporated in 2003 by Mr. Amit Kumar Saraf and his
family, and is based in New Delhi. Initially, it traded dry cell
batteries. In 2004-05 (refers to financial year, April 1 to
March 31), the company also commenced trading rechargeable
batteries and chargers. Till 2009-10, IMS was the authorized
distributor for Uniross in India for various types of rechargeable
batteries and chargers. In 2010-11, IMS commenced marketing and
distribution of rechargeable batteries, chargers, and other
electronic accessories under its own brands, Digitek and Unimax.
IMS reported a profit after tax (PAT) of INR3.1 million on net
sales of INR201.8 million for 2009-10, as against a PAT of INR2.0
million on net sales of INR142.9 million for 2008-09.
JAI DURGA: CRISIL Assigns 'BB' Rating to INR120MM Cash Credit
-------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Jai Durga Paper Mills Pvt Ltd.
Facilities Ratings
---------- -------
INR120.00 Million Cash Credit BB/Stable (Assigned)
INR973.10 Million Term Loan BB/Stable (Assigned)
INR50.00 Million Letter of Credit P4+ (Assigned)
The ratings reflect expected deterioration in JDP's financial risk
profile because of proposed debt-funded capital expenditure
(capex), exposure to high project implementation risk, and large
working capital requirements. These rating weaknesses are
partially offset by JDP's moderate operating efficiencies because
of its semi-integrated plant, and the benefits that the company
derives from its promoters' experience in the paper industry and
its established distribution network.
Outlook: Stable
CRISIL believes that JDP's financial risk profile will remain
constrained over the medium term because of the company's large
debt-funded capex, and the risks related to project
implementation. The outlook may be revised to 'Positive' in case
of timely completion of the project within the budgeted cost and
ramp-up in sales and profitability from the same. Conversely, the
outlook may be revised to 'Negative' in case of any significant
delays in project completion or cost overrun.
About Jai Durga Paper
JDP, incorporated in 1996 by Satendra Gupta, was acquired by
Mr. Dinesh Soin and his family members in 2004. The company
manufactures packaging paper (kraft paper) at its Ludhiana
(Punjab)-based unit, which has capacity of 70 tonnes per day
(tpd). The company is undertaking a large debt-funded capex to
increase its kraft paper capacity to 125 tpd. The capacity
increase is also for manufacturing value-added kraft paper, such
as absorbent paper, and carry bags. In addition, the company is
setting up a corrugated box manufacturing plant with capacity of
110 tpd. The capex is proposed to be funded in a debt-to-equity
ratio of 2.3 times. JDP is part of Saber Group of Companies,
promoters by the Soin Family, which is mainly engaged in the paper
industry including the manufacture of writing and printing paper,
kraft paper, and corrugated boxes.
JDP reported an estimated profit after tax (PAT) of INR17 million
on net sales of INR670 million for 2010-11 (refers to financial
year, April 1 to March 31), against a PAT of INR16 million on net
sales of INR553 million for 2009-10.
JEWEL OVERSEAS: CRISIL Assigns 'BB-' Rating to INR100 Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Jewel Overseas Pvt Ltd.
Facilities Ratings
---------- -------
INR100.00 Million Cash Credit BB-/Stable (Assigned)
INR300.00 Million Letter of Credit P4+ (Assigned)
The ratings reflect JOPL's weak financial risk profile, marked by
small net worth, weak debt protection metrics, and low
profitability, large working capital requirements, and its
susceptibility to volatility in raw material prices. These
weaknesses are partially offset by the experience of JOPL's
promoters in the polymer trading business and its established
customer relationships.
For arriving at the ratings, CRISIL has consolidated the business
and financial risk profiles of JOPL and Jewel Polymers (JP). This
is because, in June 2010, the promoter Mr. Rajiv Hasija set up
JOPL and gradually transferred the entire business of JP to JOPL.
In May 2011, the entire business, including the assets and
liabilities, was transferred to JOPL.
Outlook: Stable
CRISIL believes that JOPL's financial risk profile will remain
constrained by small cash accruals and large working capital
requirements. The outlook may be revised to 'Positive' if JOPL's
scale of operations and profitability improve substantially.
Conversely, the outlook may be revised to 'Negative' if the
company's operating margin declines or if its liquidity
deteriorates significantly, due to an increase in debtor levels.
About Jewel Overseas
Delhi-based JOPL is into polymer trading. It was incorporated in
June 2010, promoted by Mr. Rajiv Hasija. Mr. Hasija has been
engaged in the polymer trading business since 1986, under JP, a
proprietorship firm. The operations of JP have been wound up and
its business has been fully transferred to JOPL.
The group reported a profit after tax (PAT) of INR9.8 million on
net sales of INR1274.3 million for 2009-10 (refers to financial
year, April 1 to March 31), as against a PAT of INR2.8 million on
net sales of INR424.5 million for 2009-10.
KISAN AGRO: CRISIL Assigns 'B' Rating to INR85 Mil. Cash Credit
---------------------------------------------------------------
CRISIL has assigned 'B/Stable' rating to the long-term bank
facilities of Kisan Agro Product Industries.
Facilities Ratings
---------- -------
INR11.5 Million Standby Line of Credit B/Stable (Assigned)
INR85 Million Cash Credit B/Stable (Assigned)
The rating reflects the Kisan group's weak financial risk profile
marked by small net worth, high gearing, and weak debt protection
metrics, weak operating efficiency, and susceptibility to
volatility in prices of castor seed and foreign exchange rates.
These rating weaknesses are partially offset by the extensive
industry experience of the group's promoters and its diverse
revenue profile.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of KAPI and Kisan Proteins Pvt Ltd (KPPL),
collectively referred to as the Kisan group. This is because both
entities have a common management, operational synergies, and
fungible cash flows.
Outlook: Stable
CRISIL believes that the Kisan group will continue to register
healthy sales growth backed by their long standing experience and
revenue diversity; resulting in stable cash flows. The outlook may
be revised to 'Positive' if the group improves its operating
margins and consequently improve its debt protection measures.
Conversely, the outlook may be revised to 'Negative' if the group
undertakes any larger-than-expected debt-funded capital
expenditure programme, or in case of higher-than-expected funding
support to group entities.
About the Group
KAPI was set up as a partnership firm in 1995 by Raman Bhai Patel,
Manu Bhai Patel, Hemaben Patel, and Shankar Bhai Patel. It was set
up to manufacture and market various grades of castor oil and
castor seed extracts. The firm primarily caters to the overseas
market, with 20% sales in the domestic market. It has an expeller
capacity of 60 tonnes per day (tpd) and solvent capacity of 100
tpd located at Palanpur (Gujarat).
KPPL was set up in 2005 to produce rapeseed extraction meal, and
has a solvent capacity of 250 tpd. KPPL also manufactures castor
oil, which is sold to KAPI and this accounts for around 20% of
KPPL's total revenues. Around 75% of the rapeseed extraction meal
produced is exported and the rest is sold in the domestic market
located at Palanpur (Gujarat).
The Kisan group reported a profit after tax (PAT) of INR0.8
million on net sales of INR1,177 million for 2009-10 (refers to
financial year, April 1 to March 31), as against a PAT of
INR0.2 million on net sales of INR902 million for 2008-09.
KISAN PROTEINS: CRISIL Rates INR95 Million Cash Credit at 'B'
-------------------------------------------------------------
CRISIL has assigned 'B/Stable' rating to the cash credit facility
of Kisan Proteins Pvt Ltd.
Facilities Ratings
---------- -------
INR95 Million Cash Credit B/Stable (Assigned)
The rating reflects the Kisan group's weak financial risk profile
marked by small net worth, high gearing, and weak debt protection
metrics, weak operating efficiency, and susceptibility to
volatility in prices of castor seed and foreign exchange rates.
These rating weaknesses are partially offset by the extensive
industry experience of the group's promoters and its diverse
revenue profile.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of KPPL and Kisan Agro Product Limited
(KAPI) and, collectively referred to as the Kisan group. This is
because both entities have a common management, operational
synergies, and fungible cash flows.
Outlook: Stable
CRISIL believes that the Kisan group will continue to register
healthy sales growth backed by their long standing experience and
revenue diversity; resulting in stable cash flows. The outlook may
be revised to 'Positive' if the group improves its operating
margins and consequently improve its debt protection measures.
Conversely, the outlook may be revised to 'Negative' if the group
undertakes any larger-than-expected debt-funded capital
expenditure programme, or in case of higher-than-expected funding
support to group entities.
About the Group
KPPL was set up in 2005 to produce rapeseed extraction meal, and
has a solvent capacity of 250 tpd. KPPL also manufactures castor
oil, which is sold to KAPI and this accounts for around 20% of
KPPL's total revenues. Around 75% of the rapeseed extraction meal
produced is exported and the rest is sold in the domestic market
located at Palanpur (Gujarat).
KAPI was set up as a partnership firm in 1995 by Raman Bhai Patel,
Manu Bhai Patel, Hemaben Patel, and Shankar Bhai Patel. It was set
up to manufacture and market various grades of castor oil and
castor seed extracts. The firm primarily caters to the overseas
market, with 20% sales in the domestic market. It has an expeller
capacity of 60 tonnes per day (tpd) and solvent capacity of 100
tpd located at Palanpur (Gujarat).
The Kisan group reported a profit after tax (PAT) of INR0.8
million on net sales of INR1,177 million for 2009-10 (refers to
financial year, April 1 to March 31), as against a PAT of
INR0.2million on net sales of INR902 million for 2008-09.
LOTUS CORPORATION: CRISIL Rates INR350MM Rupee Term Loan at 'BB+'
-----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to the rupee term loan
facility of Lotus Corporation Pvt Ltd.
Facilities Ratings
---------- -------
INR350 Million Rupee Term Loan BB+/Stable(Assigned)
The rating reflects LCPL's exposure to volatility in demand for
office space resulting in high off-take risk for its ongoing
project and exposure to cyclicality in the real estate sector.
These rating weaknesses are partially offset by LCPL's low-to-
moderate exposure to risks related to project funding and
implementation.
Outlook: Stable
CRISIL believes that LCPL will continue to benefit from its
prudent funding and completion of a significant portion of its
ongoing project, over the medium term. The outlook may be revised
to 'Positive' in case of more-than-expected cash flows from the
ongoing project, most likely from pre-launch sales of the office-
space. Conversely, the outlook may be revised to 'Negative' in
case of material, time, or cost overrun in project completion, or
if the company undertakes a larger-than-expected debt-funded
project.
About Lotus Corporation
LCPL, part of the Lotus Group, was incorporated in 2007 to develop
Lotus Grandeur, a commercial office space, in Mumbai
(Maharashtra). The building is a 20-storey structure with a built-
up area of 280,000 square feet (sq ft) with a saleable area of
154,000 sq ft. Construction commenced in September 2010 and till
April 30, 2011, 18 of the total 20 slabs were constructed. The
total construction cost (including cost of land) is expected to be
around INR787 million, to be funded by INR5.1 million equity,
INR431.9 million unsecured loan and INRRs.350 million of bank
debt. The company has completed capex amounting to about INR470
million has been spent till April 30, 2011; this includes INR5.1
million in equity, INR408 million from an unsecured loan, and
INR60 million in the form of a bank loan.
MARY MATHA: CRISIL Rates INR138.30 Million Long-Term Loan at 'D'
----------------------------------------------------------------
CRISIL has assigned its 'D' rating to Mary Matha Education
Society's long-term loan facility. The rating reflects delay by
MMES in servicing its term loan; the delay has been caused by
MMES's weak liquidity.
Facilities Ratings
---------- -------
INR138.30 Million Long-Term Loan D (Assigned)
The society remains susceptible to adverse regulatory changes in
the education sector and changing demand for courses. However,
MMES has a moderate regional market position, supported by its
promoters' experience in the education sector.
Set up in 2003, MMES was taken over in 2008 by the PRS group
headed by Mr. R Murugan. MMES runs one institute namely Mary Matha
College of Engineering and Technology in Trivandrum. The
institute is approved by the All India Council for Technical
Education, New Delhi, and affiliated to the University of Kerala
and approved by the Government of Kerala. The institute has around
1200 students.
MMES reported a surplus of INR12 million on net revenues of INR57
million for 2008-09 (refers to financial year, April 1 to
March 31) against a deficit of INR10 million on net revenues of
INR23 million for 2007-08.
MATA SHEELA: CRISIL Rates INR211.40 Million Long-Term Loan at 'D'
-----------------------------------------------------------------
CRISIL has assigned its 'D' rating to the long-term loan facility
of Mata Sheela Devi Des Raj Luthra Educational Society.
Facilities Ratings
---------- -------
INR211.40 Million Long-Term Loan D (Assigned)
The rating reflects instances of delays by MSD in servicing its
debt; the delays have been caused by MSD's weak liquidity.
MSD also has a weak financial risk profile, marked by small net
worth, high gearing, and weak debt protection metrics, large debt-
funded capital expenditure, limited track record, and
susceptibility to adverse regulatory changes. These rating
weaknesses are partially offset by MSD's healthy growth in
revenues, increased scale of operations, and healthy demand
prospects in the education industry.
MSD was set up in 2007 by members of the Luthra family of Jagadhri
(Haryana). MSD operates two institutes in Jagadhri: National
College of Polytechnic (NCP) and Maharishi Ved Vyas Engineering
College (MVV). NCP, located on a 5.5-acre campus, commenced
operations in academic year 2008-09, and MVV, with an 11 Acres
campus, in academic year 2009-10. In 2010-11, MSD set up a hostel,
having 330 rooms and capacity to accommodate 990 students.
MSD reported excess of income over expenditure of INR0.06 million
on revenue receipts of INR29.8 million for 2009-10 (refers to
financial year, April 1 to March 31)
NUCON INDUSTRIES: CRISIL Assigns 'B' Rating to INR9.2MM Loan
------------------------------------------------------------
CRISIL's ratings on the bank loan facilities Nucon Industries Pvt
Ltd continue to reflect Nucon's below-average financial risk
profile, marked by a weak capital structure and liquidity, its
exposure to risks related to tender-based businesses. These
weaknesses are partially offset by Nucon's established regional
presence in pneumatic solutions, and its longstanding customer
relationships.
Facilities Ratings
---------- -------
INR170.00 Million Cash Credit B/Stable
(Enhanced from INR160.00 Million)
INR9.20 Million Term Loan B/Stable (Assigned)
INR25.00 Million Letter of Credit P4 (Assigned)
INR55.00 Million Bank Guarantee P4 (Assigned)
Outlook: Stable
CRISIL believes that Nucon will continue to benefit from its
established relations with customers and the longstanding
experience of its promoters. A substantial improvement in the
company's gearing, as a result of equity infusion, or increase in
its operating margin and realizations, leading to improvement in
its financial risk profile, may result in a revision in the
outlook to 'Positive'. Conversely, significant delays in
realizations of receivables or larger-than-expected debt may drive
a revision in the outlook to 'Negative'.
About Nucon Industries
Nucon manufactures compressed air treatment and pneumatic
solutions. Based in Hyderabad, the company is managed by promoter
director Mr. Hemant Jalan, who has experience of around two
decades in the business. Nucon also has capability to manufacture
cylinders in sizes of more than 20 inches (heavy duty cylinders).
Nucon's manufacturing unit in Hyderabad has installed capacity of
around 2000 cylinders per month.
Nucon reported a profit after tax (PAT) of INR1 million on net
sales of INR179 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR2 million on net sales
of INR196 million for 2008-09.
R.R. THULASI: CRISIL Assigns 'BB-' Rating to INR20MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to R.R. Thulasi
Builders (India) Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR20 Million Cash Credit BB-/Stable (Assigned)
INR47.7 Million Long-Term Loan BB-/Stable (Assigned)
INR55 Million Bank Guarantee P4+ (Assigned)
The ratings reflect RR Thulasi's significant segmental and
geographical concentration, exposure to risks related to intense
competition in the construction industry, and large working
capital requirements. These rating weaknesses are partially offset
by healthy increase in RR Thulasi's revenues, its healthy order
book, and moderate financial risk profile, marked by healthy
gearing and strong debt protection metrics.
Outlook: Stable
CRISIL believes that RR Thulasi will continue to benefit from its
promoters' experience in the construction industry and its healthy
order book, over the near term. The outlook may be revised to
'Positive' if RR Thulasi sustains growth in its revenues and
improves its profitability by adding new clients and projects.
Conversely, the outlook may be revised to 'Negative' if RR Thulasi
faces time or cost overrun in the implementation of its ongoing
projects, or if large borrowings for capital expenditure weaken
its financial risk profile, particularly liquidity.
About R.R. Thulasi
Set up in 1972 as a partnership firm, R Rangaswamy and Company, RR
Thulasi was reconstituted as a private limited company in February
2006. The company is owned by Mr. V S Selvaraaj and family. RR
Thulasi undertakes civil construction activities in Tamil Nadu.
The company undertakes construction of buildings for engineering
and medical colleges, industries, and for the public works
department.
RR Thulasi reported a profit after tax (PAT) of INR28 million on
an operating income of INR836 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR23
million on an operating income of INR532 million for 2008-09.
SOMA ISOLUX SURAT: CRISIL Reaffirms 'BB' Rating on INR1.81MM Loan
-----------------------------------------------------------------
CRISIL's ratings on Soma Isolux Surat Hazira Tollway Pvt Ltd's
term loan facility continues to reflect SISH's exposure to risks
related to the initial phase of construction of four lane Surat-
Hazira highway; land acquisition for the project and approvals
from various authorities are pending.
Facilities Ratings
---------- -------
INR18140.0 Million Term Loan BB/Stable (Reaffirmed)
The project itself has high number of en route structures and is
also exposed to other implementation risks. The rating also
factors in CRISIL's belief that SISH's debt protection metrics
will be weak in the initial years of the project. These rating
weaknesses are partially offset by the benefits that SISH derives
from the high economic viability of its project, due to the
presence of an industrial belt along the highway, and the
achievement of financial closure on project funding.
Outlook: Stable
CRISIL believes that SISH will maintain a stable credit risk
profile, given the adequate time to overcome delays in progress
till commercial operation date (COD) and the low funding risks for
the project. The project, however, remains in the initial stages
of construction and faces significant risks related to structural
complexity in the form of various railway over bridges, bridges,
and underpasses. The outlook may be revised to 'Positive' if
progress on the project is better than CRISIL's expectation,
leading to timely completion of the project. Conversely, the
outlook may be revised to 'Negative' if there are time overruns on
the project owing to issues related to land acquisition or delays
because of the structural complexity of the road.
About Soma Isolux Surat
SISH is a special-purpose vehicle (SPV) formed by the Isolux
Corsan group and Soma Enterprises Ltd in 2009. SISH has entered
into a concession agreement with the National Highways Authority
of India (NHAI; rated 'AAA/Stable' by CRISIL) for execution of the
road project on a design, build, finance, operate, and transfer
(DBFOT) basis.
SISH is constructing four lanes of the Gujarat and Maharashtra
border Surat--Hazira port section of National Highway 6, State
Highway (SH) 168, and SH 187 (length of around 132.9 kilometres)
in Gujarat, under the National Highways Development Project Phase
III, through public-private partnership on a DBFOT basis. The
concession period is of 19 years, including construction period of
2.5 years, which commences from its appointment date.
The project cost is expected to be around INR24.19 billion, which
is to be funded by a mix of debt, equity, and capital grant from
NHAI in the ratio of 75:12.5:12.5.
The progress of the project is running behind the schedule; the
physical progress achieved till March 2011 stood at 16.32 percent
as against targeted 30.77 percent (slippage of 14.45 percent). The
delay in execution is attributable to lag in land allocation by
NHAI and slow progress in utility shifting. With the company's
focus to revise and review the execution scheduled, the commercial
operation is expected to be achieved by September 25, 2012.
SOMA ISOLUX: CRISIL Reaffirms 'BB+' Rating on INR9.78BB Term Loan
-----------------------------------------------------------------
CRISIL's rating on Soma Isolux Kishangarh Beawar Tollway Pvt Ltd's
term loan facility continues to reflect SIKB's road-construction
project risks and CRISIL's belief that SIKB's debt protection
metrics will remain weak in the initial few years. These rating
weaknesses are partially offset by the benefits that SIKB derives
from high economic viability of its project because of the
presence of industrial and tourist destinations on the highway
stretch, achievement of financial closure on the project funding,
and small likelihood of cost overruns because of the fixed-cost
structure of the company's engineering, procurement, and
construction contracts.
Facilities Ratings
---------- -------
INR9780.0 Million Term Loan BB+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SIKB will maintain its credit risk profile
over the medium term, given the absence of funding-related risks,
and low technical complexity, of its road project. The outlook may
be revised to 'Positive' if SIKB's project progresses at a faster
pace than expected, leading to early completion of the project.
Conversely, the outlook may be revised to 'Negative' if there are
significant time overruns in the project.
About Soma Isolux
SIKB is a special-purpose vehicle, jointly promoted by Isolux
Corsan group and Soma Enterprises Ltd. SIKB has entered into a
concession agreement with the National Highway Authority of India
(rated 'AAA/Stable' by CRISIL) for execution of the road project
on a design, build, finance, operate, and transfer basis.
The project involves designing, building, financing, operating,
and transferring six lanes of the Kishangarh-Ajmer-Beawar section
of National Highway 8, from kilometre (km) 364.125 to 58.245
(total length of 93.56 km), in Rajasthan. The concession period is
of 18 years, including construction period of 2.5 years; the
construction period commenced from its appointment date, Nov. 14,
2009. The project execution is slightly better than the schedule;
the company completed 42.91% of physical work by March 31, 2011,
as against the target of 42.45%.
The project cost is expected to be around INR13.05 billion, to be
funded in a debt-to-equity mix of 75:25.
=================
I N D O N E S I A
=================
ALUCO (P.T.): Moody's Assigns 'B3' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has assigned a B3 corporate family
rating to PT ALUCO. The rating outlook is stable. This is the
first time Moody's has assigned a rating to ALUCO.
Ratings Rationale
ALUCO's B3 rating reflects its position as the leading cable
manufacturer in Indonesia, through its 79.5% subsidiary PT Tranka
Kabel, despite its relatively small scale.
"The company's long-term relationship with Indonesia's state-owned
power utility, PT Perusahaan Listrik Negara's ("PLN"; Ba1/stable)
and its vertically integrated operations -- which results in
operating efficiency and an ability to manufacture a diverse range
of low to high voltage over- and underground cables -- enable the
company to capture expected growth in demand for transmission and
distribution cables arising from higher domestic electricity
demand," says Alvin Tan, a Moody's Analyst.
ALUCO's ability to pass on price fluctuations to customers
minimizes its exposure to commodity price risk. Accordingly, it
has achieved a consistent track record of profitability, with
EBITDA margins ranging from 7% to 15% over the past three years.
ALUCO's key challenge includes its sizeable working capital
requirements, which constrain its capacity utilization and organic
growth potential.
"The increase in aluminum and copper prices over the years has led
to significant working capital needs, which in turn resulted in
low capacity utilization of its cable facilities of between 49%
and 59.3% over the past five years," adds Tan, who is also Moody's
Lead Analyst for ALUCO.
The company has consistently generated positive Fund from
Operations (FFO) over the past five years. However, Operating Cash
Flows, after working capital changes, have been negative until
2010, due mainly to increasing metal prices, production expansion,
and delays in customer payments during the recent global financial
crisis.
As such, the company relies on working capital lines to fund its
ongoing operations.
Moody's expects working capital requirements to remain high over
the next two years, as the company continues to expand production,
leading to negative operating cash flows.
ALUCO's operations are also characterized by high customer
concentration, with PLN and related contractors accounting for
around 47% of the company's FY2010 revenue. During the recent
global financial crisis in 2008-2009, PLN delayed payments to its
contractors and suppliers as a result of delays in its projects,
which negatively impacted ALUCO's working capital. Its private
ownership status also leads to concerns over limitations to both
corporate governance and transparency. However, Moody's takes
comfort from the recent track record, whereby shareholders have
never paid a dividend and injected funds into the business in
support of long term growth.
The stable outlook incorporates Moody's expectation that ALUCO
will be able to manage aluminum and copper price volatility within
their working capital constraints and will also be able to
increase capacity utilization and expand production as planned.
Upward rating pressure could develop if (a) ALUCO expands its
capacity utilization and customer base, and establishes a longer
track record in managing its working capital needs; (b)
demonstrates good corporate governance, while adhering to strict
internal operational guidelines; (c) ALUCO's liquidity profile is
maintained, while financial flexibility improves with sufficient
headroom under its financial covenants; and (d) ALUCO maintains
committed banking facilities as standby.
Credit metrics that will support an upgrade include EBITA/Interest
above 3x, Debt/EBITDA below 3-4x, and FFO/Debt above 20-25% on a
sustained basis.
Downward pressure could develop if ALUCO's industry fundamentals
deteriorated, resulting in protracted weakness in operating cash
flows generation that could in turn impact its debt servicing
abilities; or if the company increased its debt leverage,
potentially to fund acquisitions, substantial capex and/or
shareholder returns. Such pressure may be evidenced by
EBITA/Interest below 1-2x, Debt/EBITDA above 5x, and FFO/Debt
below 10%.
The principal methodologies used in this rating was Global
Manufacturing Industry published in December 2010.
Established in 2003, PT ALUCO, a private company, is a leading
manufacturer of cable in Indonesia, with an installed capacity of
110,000 metric tones per annum. The company specializes in high
voltage transmission cables, medium voltage transmission and
distribution cables, as well as special conductors. For 2010, the
company reported revenues of approximately US$366 million.
=========
J A P A N
=========
JLOC XXXIII: Moody's Changes Ratings for Class B Through D Certs.
-----------------------------------------------------------------
Moody's Japan K.K has changed the ratings for the Class B through
D Trust Certificates issued by JLOC XXXIII Trust. The final
maturity of the Trust Certificates will take place in July 2013.
Deal Name: JLOC XXXIII Trust
Class B, Upgraded to Aaa (sf); previously on November 16, 2006
Definitive rating assigned Aa2 (sf)
Class C, Downgraded to B2 (sf); previously on April 22, 2011 Ba2
(sf) Placed Under Review for Possible Downgrade
Class D, Downgraded to C (sf); previously on April 22, 2011 Caa3
(sf) Placed Under Review for Possible Downgrade
Class: Class A through D and Class X Trust Certificates
Issue Amount (initial): Approximately JPY 67.8 billion
Dividend: Floating/fixed
Transfer Date of Trust Certificates: November 16, 2006
Final Maturity Date: July 2013
Underlying Asset (initial): A portfolio of 10 assets comprising
specified bonds and non-recourse loans, as well as a trust
certificate that is backed by loan receivables
Entrustor: Morgan Stanley Japan Limited (as of issue date)
Trustee: Nochu Trust & Banking Co., Ltd.
Arranger: Morgan Stanley Japan Limited (as of issue date)
JLOC XXXIII, issued in November 2006, represents the
securitization of five specified bonds, four non-recourse loans,
and one senior trust certificate backed by one non-recourse loan
(all referred to as "the loans"), which were originally backed by
110 properties.
The Entrustor entrusted the loans to the Trustee (originally
backed by 110 properties) and received the Class A through D and
Class X Trust Certificates in return, which were then sold to
investors. The Trust Certificates are rated by Moody's.
In this transaction, interest and principal payments from any
defaulting underlying loans will be used to make sequential
payments on the most senior class. The losses will be allocated in
reverse sequential order, starting with the most subordinate class
of the trust certificates.
Six of the loans have been paid down in full, and the Class A
Trust Certificates were redeemed in full. The transaction is
currently secured by four loans backed by 18 properties, which are
under special servicing.
Rating Rationale
The current rating action reflects these factors:
(1) Given that the recovery from and the performance of the
properties for the specially serviced loans remain lower than
Moody's previous assumptions, the new estimate for disposal
prices is approximately 25% lower than Moody's initial value.
(2) In addition, losses on the remaining loan are highly likely
and could negatively affect the Class C and D Trust
Certificates.
(3) The credit support for the Class B Trust Certificates has
increased as a result of the special servicer's collection
activities.
Moody's did not receive or take into account a third party due
diligence report on the underlying assets or financial instruments
related to the monitoring of this transaction in the past six
JMAC4 TRUST: Moody's Downgrades Rating of Class C Trust Certs.
--------------------------------------------------------------
Moody's Japan K.K has downgraded its rating on the Class C Trust
Certificates issued by JMAC4 Trust.
Deal Name: JMAC4 Trust
Class C, Downgraded to Caa1 (sf); previously on Mar 4, 2010
Downgraded to B3 (sf) from Ba2 (sf)
Class: Class A through E and X1 Trust Certificates
Issue Amount (initial): Approximately JPY 11.2 billion
Dividend: Floating
Transfer Date of Trust Certificates: March 28, 2006
Final Maturity Date: February 2013
Underlying Asset (initial): A portfolio of 16 non-recourse loans
Originator: GMAC Commercial Mortgage Japan, K.K., GMACCM-Japan
("Seller", As of issued date)
Arranger: Daiwa Securities Capital Markets Co. Ltd.
Asset Trustee: The Sumitomo Trust and Banking Co., Ltd.
JMAC4 Trust, effected in March 2006, represents the securitization
of 16 non-recourse loans backed by real estate.
The Seller entrusted the loans to the Asset Trustee, and received
the Class A through E and X1 Trust Certificates, which it then
sold to investors. The trust certificates are rated by Moody's.
In this transaction, principal and dividend payments will be made
on a sequential basis.
Fifteen of the loans have been paid down or recovered.
The sole remaining loan, which is backed by a residential property
in central Tokyo, has been under special servicing since November
2010.
Rating Rationale
The current rating action reflects these factors:
(1) Moody's is concerned about the recovery level from the
properties when they are sold for the remaining outstanding
loan, and has therefore re-assessed its recovery stress
assumptions, lowering them approximately 53% from initial
assumptions.
(2) In light of Moody's re-assessment, losses on the Class C Trust
Certificates are highly likely.
Moody's did not receive or take into account a third party due
diligence report on the underlying assets or financial instruments
related to the monitoring of this transaction in the past six
months.
L-JAC 7: S&P Lowers Ratings on 4 Classes of Certificates to 'D'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class A to C, D-1, E-1, and F-1 trust certificates and a trust
loan issued in March 2008 under the L-JAC 7 Trust Beneficial
Interest and Trust Loan (L-JAC 7) transaction. "We kept the
ratings on classes A to C and the trust loan on CreditWatch with
negative implications, and removed the ratings on classes D-1,
E-1, and F-1 from CreditWatch with negative implications. We
placed the ratings on these six classes and the trust loan on
CreditWatch negative on April 27, 2011. The rating on the
interest-only (IO) class X trust certificates was withdrawn in
accordance with the rating methodology for IO securities.
Meanwhile, we affirmed the ratings on the transaction's other 14
classes. We had lowered the ratings on the class H-1, I-1, J-1,
and K-1 trust certificates to 'D (sf)' on July 26, 2010," S&P
stated.
This transaction was initially backed by four loans and four
specified bonds. Currently, six loans are outstanding.
"The downgrades reflect a downward revision of our recovery
prospects for two of the three defaulted loans (the two loans
represent about 25% of the initial issue amount), in light of the
progress in the sale of the collateral properties backing the
loans based on the servicer's business plan. The total amount of
expected recovery from the two loans after the downward revision
accounts for about 54% of Standard & Poor's initial underwriting
value," S&P noted.
The class A to C trust certificates and the trust loan remain on
CreditWatch with negative implications, reflecting these factors:
* An assessment of the prospects for recovery from three loans
(one of the three defaulted loans and two loans due on and
after September 2011), which was part of the reason for the
CreditWatch placement on April 27, 2011, has not been
completed yet.
* One of the two loans for which the recovery prospects were
lowered (the loan represents about 15% of the initial issue
amount) is backed by hotels. The ratings may come under
further downward pressure, depending on the progress of the
sale of the hotels by the servicer.
Standard & Poor's intends to review its ratings on the relevant
classes after examining the two factors.
Meanwhile, Standard & Poor's withdrew its rating on the IO class X
trust certificates. The withdrawal is based on the updated rating
methodology for IO securities, which was published on April 15,
2010 (see "Global Methodology For Rating Interest-Only
Securities," published April 15, 2010, on RatingsDirect
on the Global Credit Portal).
L-JAC 7 is a multiborrower commercial mortgage-backed securities
(CMBS) transaction initially secured by four specified bonds and
four nonrecourse loans that were originally extended to eight
obligors. The specified bonds and nonrecourse loans were
originally backed by 16 real estate properties and real estate
beneficial interests. The transaction was arranged by Lehman
Brothers Japan Inc., and Premier Asset Management Co. is the
servicer for the transaction.
The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's legal
final maturity date in 2014 for the class A trust certificates and
the trust loan, and the full payment of interest and ultimate
repayment of principal by the legal final maturity date for the
class B to J-2 certificates.
Ratings Lowered and Kept on CreditWatch Negative
L-JAC 7 Trust Beneficial Interest and Trust Loan
JPY38.96 billion Trust certificates due October 2014
Class To From Issue amount
Coupon
A A+ (sf)/Watch Neg AA (sf)/Watch Neg JPY11.75 bil.
Floating
Trust Loan A+ (sf)/Watch Neg AA (sf)/Watch Neg JPY8.50 bil.
Floating
B BB+ (sf)/Watch Neg BBB+ (sf)/Watch Neg JPY3.15 bil.
Floating
C B- (sf)/Watch Neg B+ (sf)/Watch Neg JPY3.14 bil.
Floating
Ratings Lowered and Removed From CreditWatch Negative
Class To From Initial issue amount Coupon
type
D-1 CCC (sf) BB- (sf)/Watch Neg JPY1.88 bil. Floating
rate
E-1 CCC (sf) B+ (sf)/Watch Neg JPY0.61 bil. Floating
rate
F-1 CCC (sf) B (sf)/Watch Neg JPY0.80 bil. Floating
rate
Ratings Affirmed
Class Rating Initial issue amount Coupon type
D-2 CCC (sf) JPY1.10 bil. Floating rate
D-3 CCC (sf) JPY0.60 bil. Floating rate
E-2 CCC (sf) JPY0.56 bil. Floating rate
E-3 CCC (sf) JPY0.27 bil. Floating rate
F-2 CCC (sf) JPY0.49 bil. Floating rate
F-3 CCC (sf) JPY0.26 bil. Floating rate
G-1 CCC (sf) JPY0.71 bil. Floating rate
G-2 CCC (sf) JPY0.48 bil. Floating rate
G-3 CCC (sf) JPY0.26 bil. Floating rate
H-2 CCC (sf) JPY0.64 bil. Floating rate
H-3 CCC (sf) JPY0.30 bil. Floating rate
I-2 CCC (sf) JPY0.62 bil. Floating rate
I-3 CCC (sf) JPY0.33 bil. Floating rate
J-2 CCC (sf) JPY0.53 bil. Floating rate
Rating Withdrawn
Class Rating Initial issue amount
X AAA (sf) JPY38.96 bil.*
*Initial notional principal
====================
N E W Z E A L A N D
====================
AMI INSURANCE: Tower Ltd Mulls AMI Purchase
-------------------------------------------
The Dominion Post reports that Tower Ltd said it is looking to
enhance its strength through acquisition and continues to work on
a possible purchase of troubled AMI Insurance.
As reported in the Troubled Company Reporter-Asia Pacific on
April 8, 2011, The New Zealand Herald said New Zealand's
government had announced a support package for AMI Insurance that
Finance Minister Bill English acknowledges could top NZ$1 billion
and leave the Crown liable for up to NZ$200 million a year in
ongoing claims. Interest.co.nz said the government stepped in to
guarantee AMI policy holders if the insurance company had
exhausted its own reserves due to the financial hit caused by the
two Christchurch earthquakes on Sept. 4, 2010, and Feb. 22, 2011.
The Dominion Post relates that Tower group managing director Rob
Flannagan said the big issue with AMI was obtaining information,
which he expected would take a while, with AMI not having called
on government backup yet.
If it did happen it would trigger other events, as the Government
gained more control, The Dominion Post says. According to The
Dominion Post, the outcome would depend on what the Government,
which in effect was acting as a reinsurer, wanted to do. Tower
would like the Government to continue being the reinsurer,
Mr. Flannagan said.
Tower would also like to know the extent of AMI's exposure, and
had done quite a bit of modeling, The Dominion Post reports.
AMI Insurance -- http://www.ami.co.nz/-- is the largest general
insurer in Christchurch, New Zealand.
BRIDGECORP LTD: Ex-Director to Stand Trial in 2012 on Tax Charges
-----------------------------------------------------------------
Fiona Rotherham at BusinessDay.co.nz reports that former
Bridgecorp executive director Rob Roest will stand trial in May
next year on six charges filed by the Inland Revenue Department
over Bridgecorp's unpaid tax.
BusinessDay.co.nz says the bankrupt and suspended accountant faces
six charges under the Taxation Administration Act relating to
aiding and abetting Bridgecorp Management Services in not paying
NZ$354,550 of PAYE.
The charges carry a maximum penalty of up to five years in prison
and a $50,000 fine, the report says.
According to BusinessDay.co.nz, Mr. Roest's lawyer Todd Simmonds
said his client entered a not guilty plea to the charges some time
ago but appeared for a callover hearing on the charges in the
Manukau District Court.
The charges will be defended at a trial on May 7 next year, the
report discloses.
BusinessDay.co.nz relates that the tax case is the third
prosecution Mr. Roest is facing currently. He and four other
Bridgecorp directors are facing charges laid by the Financial
Markets Authority that he made untrue statements in Bridgecorp's
prospectuses.
The directors have pleaded not guilty and that trial is due to
begin in the Auckland High Court on August 8, 2011, the report
adds.
About Bridgecorp Ltd
Based in New Zealand, Bridgecorp Ltd. is a property development
and finance company. Bridgecorp was placed in receivership on
July 2, 2007, after failing to pay principal due to debenture
holders. John Waller and Colin McCloy, partners at
PricewaterhouseCoopers, were appointed as receivers. Bridgecorp
owes around 1,800 debenture holders, which liquidators estimate to
approximate NZ$500 million.
Bridgecorp's nine Australian companies were also placed into
voluntary administration, owing about 100 investors about AU$24
million (NZ$27 million).
REDGROUP RETAIL: To Close Three Whitcoulls Stores in Christchurch
-----------------------------------------------------------------
The Press reports that three earthquake-damaged Whitcoulls stores
in Christchurch are set to close.
The Press relates that the James Pascoe Group which owns Farmers,
Pascoes and Prouds, has bought 62 Whitcoulls and Borders
bookshops, after the previous owners, REDgroup Retail, collapsed
from debts.
However, The Press says, it was revealed by Radio New Zealand on
Friday that the new owner will not buy three damaged stores in
Christchurch, nor three other stores in Upper Hutt, Papamoa near
Tauranga and the Albany mall.
The iconic City Mall Whitcoulls store was severely damaged in the
February earthquake and the new store nearby in Colombo Street,
north of Cathedral Square, has been closed since then, The Press
notes.
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
================
S R I L A N K A
================
MULTI FINANCE CO: Fitch Assigns 'B+(lka)' National LT Rating
------------------------------------------------------------
Fitch Ratings Lanka has assigned the Multi Finance Company Limited
(MFCL) a National Long-Term rating of 'B+(lka)'. The Outlook is
Stable.
MFCL's rating reflects its small size, weak franchise, modest
capitalisation and low profitability in its core business. The
rating factors in the company's rapid loan growth since its
takeover by Entrust Limited in March 2008, and the resulting
improved product diversity.
The rating may face downward pressure if there is a significant
structural change in MFCL's balance sheet, which could impede
future profitability. Such a change in its balance sheet could
arise from, among other things, its potential merger with the
finance company -- The Standard Credit Lanka Ltd. A significant
and sustained weakening of its capitalization or liquidity could
also have a negative rating impact. Conversely, an increase in
MFCL's scale of operations without a significant compromise on
asset quality, as well as a sustained improvement in its core
profitability could result in a ratings upgrade.
In March 2011, MFCL's parent -- Entrust Limited -- was appointed
as managing agent of SCLL (a failed company of the Ceylinco
Group). SCLL is being restructured; Entrust's management intends
to merge SCLL with MFCL post-restructuring. Fitch notes that such
a merger could significantly alter MFCL's balance sheet, with a
higher proportion of real estate and other slow or non-yielding
assets on its books. As such, Fitch will closely monitor changes
that could arise to MFCL's balance sheet post merger and assess
its asset composition and quality commensurate with its rating as
more information becomes available.
Aided by equity injections in the financial year ended March 2008
(FY08) and FY09, MFCL was able to meet the regulatory minimum
capital requirement of LKR200 million for registered finance
companies (RFCs) and increased its asset base to LKR681m by end-
H1FY11 (FYE07: LKR150 million). MFCL's lending portfolio is its
main asset, comprising mainly vehicle financing through leases and
hire purchase (FYE10: 89% of advances) for commercial vehicles.
MFCL's loan quality is high, with gross non-performing advances
(NPAs; advances in arrears in excess of three months) accounting
for just 4.2% of advances at end-H1FY11 (1% at the regulatory six-
month level), which is considerably lower than peers'. However,
Fitch notes that this portfolio is still new and as such NPAs
could increase as the loan book seasons.
MFCL's profitability is constrained by its high cost structures,
although its net interest margins (NIMs) benefit from a high
proportion of equity-funded assets. The company's operating costs,
which accounted for 11.2% of average assets in H1FY11 (FY10: 13%),
are considerably higher than other RFCs' rated by Fitch (FY10:
5.8%). This is partly driven by the fact that MFCL is still in
early stages of growth and yet to benefit from expenses incurred
on branch expansion and systems improvements. However, Fitch notes
that as MFCL expands and the proportion of equity-funded assets
decreases, its NIMs will continue to narrow and therefore cost
structures would need to improve so as to maintain core
profitability.
As MFCL is still in the early stages of growth, the proportion of
equity, although decreasing, is a major component of its funding
base (37% of assets at end-H1FY11 from 71% at FYE09). Deposits
funded just 23% of assets (over 60% for peers), with parent
company borrowings funding 30% at end-H1FY11. Fitch observes that
MFCL is exposed to some degree of refinancing risk on this
borrowing. Although deposit growth of 28% in H1FY11 (FY10: 118%)
was higher than the sector, this growth was on a very small base
and did not match loan growth of 69% in H1FY11 (FY10: 65%) --
partly owing to its limited deposit franchise. However, branch
expansion undertaken and current marketing efforts should support
higher deposit growth in FY12.
MFCL was established as an RFC in 1974. It was a closely held
company before it was acquired and restructured by Entrust Limited
-- an investment holding company. Entrust is in turn held by
Pacific Trust (Pvt) Limited, a holding company owned by a
consortium of investors.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante,
Rousel Elaine T. Fernandez, Psyche A. Castillon, Julie Anne G.
Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A.
Chapman, Editors.
Copyright 2011. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Christopher Beard at 240/629-3300.
*** End of Transmission ***