/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/110602.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, June 2, 2011, Vol. 14, No. 108 Headlines A U S T R A L I A INTERPACIFIC RESORTS: Appoints Ferrier Hodgson as Liquidators CENTRO PROPERTIES: Smartec to Inspect U.S. Asset Sale Docs REDGROUP RETAIL: A&R Franchisees Should Consider Launching Own Bid C H I N A CHINA CGAME: Posts US$4.7 Million Net Loss in First Quarter CHINA IVY: Posts US$924,300 Net Loss in First Quarter CHINA RENEWABLE: Posts US$94,700 First Quarter Net Loss CHINA TEL GROUP: Enters Into Amended Purchase Pact with Isaac CHINESEWORLDNET.COM INC: Recurring Losses Cue Going Concern Doubt SHANGHAI ZENDAI: Moody's Cuts Rating on Unsecured Debt to 'Caa1' SOLAR ENERTECH: Posts US$3.1 Million First Quarter Net Loss H O N G K O N G LUCKY COSMOS: Keung and Wai Step Down as Liquidators LUCKY GROUP: Keung and Wai Step Down as Liquidators NB HANTCHY: Creditors' Proofs of Debt Due July 5 RIBO INDUSTRIAL: Kwok Siu Man Appointed as Liquidator SINOWAY KINGDOM: Creditors' Proofs of Debt Due June 30 SKYNET LIMITED: Creditors' Proofs of Debt Due June 17 SOCOMEC SICON: Placed Under Voluntary Wind-Up Proceedings STAR EAST: Keung and Wai Step Down as Liquidators STAR EAST ON-LINE: Keung and Wai Step Down as Liquidators TYRONE ELECTRIC: Members' Final Meeting Set for July 5 UNIVERSE LINK: Keung and Wai Step Down as Liquidators WELL FORTUNE: Yu and Choi Step Down as Liquidators WIDE TREASURE: Keung and Wai Step Down as Liquidators YORK RISE: Creditors' Proofs of Debt Due June 30 I N D I A C. A. V. COTTON: CARE Assigns 'CARE C' Rating to INR14.25cr Loan HANS ISPAT: CARE Assigns 'CARE BB+' Rating to INR71.29cr LT Loan GAURAVH WINES: ICRA Assigns 'LB' Rating to INR5cr Bank Limits JOYSHREE POWEROL: ICRA Assigns 'LBB-' Rating to INR3cr Term Loan MALUK EDUCATIONAL: ICRA Assigns 'LBB-' Rating to INR33.62cr Loan RANA SPONGE: ICRA Suspends 'LB+' Rating on INR82.32cr Bank Limits RANA UDYOG: ICRA Suspends 'LBB-' Rating on INR40cr Bank Limits RATAN PLANET: ICRA Assigns 'LBB-' Rating to INR15cr Term Loans RIDHAM SYNTHETICS: CARE Rates INR15.79cr LT Loan at 'CARE BB' SHREE KRISHNA: ICRA Assigns 'LC' Rating to INR4cr Bank Loan SYNERGY PUNCHING: ICRA Places 'LBB-' Rating on INR3.25cr Term Loan UNITECH POWER: CARE Assigns 'CARE B+' Rating to INR30cr Bank Loans VINAYAK STEELS: ICRA Cuts Rating on INR5.3cr Term Loans to 'LBB+' VIVEKANANDA FORGING: CARE Assigns 'CARE BB' Rating to INR24cr Loan I N D O N E S I A BANK MEGA: Fitch Ratings Affirms Individual Rating at 'D' J A P A N TOKYO ELECTRIC: Begins Compensation Payments to Affected Farmers K O R E A HYNIX SEMICONDUCTOR: Fitch Ratings Affirms IDRs at 'BB-' N E W Z E A L A N D REAL GROOVY: Closes Shop; 12 Staff Lost Jobs YARROWS BAKERS: Goes Into Receivership, BDO to Take Over P H I L I P P I N E S BANCO FILIPINO: Court of Appeal Denies Bank's Bid to Reopen - - - - - ================= A U S T R A L I A ================= INTERPACIFIC RESORTS: Appoints Ferrier Hodgson as Liquidators ------------------------------------------------------------- ninemsn reports that Ferrier Hodgson partners Will Colwell and Tim Michael have been appointed members' voluntary liquidators over the four companies that own and control the real estate and rights to the Couran Cove Island Resort. The resort, at South Stradbroke Island in Queensland, was placed in care and maintenance on Tuesday, ninemsn says. According to ninemsn, the four companies are subsidiaries of the US-based InterPacific Group Inc. They are InterPacific Resorts (Australia) Pty Ltd; InterPacific Group (Australia) Pty Ltd; Couran Cove Management Pty Ltd; and Couran Cove Services Pty Ltd. ninemsn relates that InterPacific said the resort had been operating at "a significant trading loss" for a number of years. InterPacific said that following the effect of the global financial crisis, damaging weather and a weakening tourism market, it had formed the view that the resort was no longer financially sustainable, according to ninemsn. InterPacific said it had decided to seek a buyer for its real estate assets and rights on the resort and that the sale would be facilitated through the members' voluntary liquidation process, ninemsn relates. According to the report, Mr. Colwell said the real estate assets and rights for the resort would be immediately marketed for sale through Trevor Weinert of Colliers International. Although the resort will no longer be trading as an operating resort, while on care and maintenance, unit-owners will still be able to access and use their units, have ongoing access to certain resort facilities and be able to privately let their units, ninemsn adds. Interpacific Resorts (Aust) Pty Ltd is the developer of the Couran Cove Island Resort located on South Stradbroke Island, in Australia. CENTRO PROPERTIES: Smartec to Inspect U.S. Asset Sale Docs ---------------------------------------------------------- Bridget Carter at The Australian reports that SMARTEC Capital has claimed a partial victory through the New South Wales Supreme Court in its attempt to inspect documents linked to Centro Properties Group's proposed sale of its US portfolio for US$9.4 billion (AU$8.8 billion). A court judgment said Monday that Smartec had "no proper purpose" seeking access to five out of six categories of documents linked to the proposed Centro Properties sale to private equity giant Blackstone, the Australian relates. However, the court ruled that Smartec was able to inspect correspondences between the Australian Securities Exchange and Centro Properties. The Australian relates that Centro maintained that the correspondences had been available to Smartec from the start. According to the report, Smartec spokeswoman Rebecca Li said the ASX documents were those the group had wanted to inspect and had not been offered by the company before. "We wanted to see whether they actually told the ASX that it (the transaction) would not require shareholder's approval," The Australian quotes Ms. Li as saying. The final order would be released within a week and further action would depend on whether that order had any confidentiality conditions attached to it, Ms. Li said. Smartec, which owns almost 5% of Centro Properties Group, launched the court claim in March, saying they believed the sale of the US assets to Blackstone should have been put to a shareholders' vote, The Australian notes. Centro Properties decided in November 2010 to put all its assets on the block after having received approval to refinance the next round of debt. The sale of the assets comes almost three years to the day that Centro's former chief executive, Andrew Scott, and the board revealed the group did not have the funds needed to pay the AU$4 billion of debt that was due in December 2007. That resulted in the shares of the company dropping in value by as much as 90%, according to the Sydney Morning Herald. About Centro Properties Centro Properties Group (ASX:CNP)-- http://www.centro.com.au/-- is a retail investment organization specializing in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management of US$24.9 billion. REDGROUP RETAIL: A&R Franchisees Should Consider Launching Own Bid ------------------------------------------------------------------ SmartCompany reports that franchise experts said franchisees of the stricken Angus & Robertson chain should consider launching their own bid for the brand, as administrators for the business hunt desperately for a buyer before they are forced to close it down. According to SmartCompany, rival book chains Collins and Dymocks have both expressed interest in buying some stores from the debt- laden REDGroup Retail, which owns company-owned Borders and Angus & Robertson stores plus the A&R franchise network. The group of 25 breakaway A&R franchisees are yet to comment, although franchise experts said this is a prime opportunity to launch a buyout bid if they want to continue to operate under the A&R brand and grab control of the chain's future, SmartCompany says. "Here's an opportunity to band together and make an offer for the A&R trademarks," SmartCompany quotes Norton Rose partner Stephen Giles as saying. Buying the entire company might be too difficult for one buyer to digest, he pointed out. Franchise Advisory Centre director Jason Gehrke agrees with Mr. Giles' observation, SmartCompany says. "It would be a logical next step for the franchisees to consider a buyout. Let's face it, they have the most to lose and consequently the most to gain," Mr. Gehrke told SmartCompany. 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 Steve Sherman, John Melluish and John Lindholm of Ferrier Hodgson as voluntary administrators. The board appointed Steve Sherman, John Melluish and Ryan Eagle as voluntary administrators of the group's New Zealand business on the same day. According to Bloomberg News, 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. 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 ========= C H I N A ========= CHINA CGAME: Posts US$4.7 Million Net Loss in First Quarter ----------------------------------------------------------- China CGame, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of US$4.7 million on contract revenues earned of US$8.8 million for the three months ended March 31, 2011, compared with a net loss of US$3.5 million on contract revenue earned of US$11.5 million for the same period last year. The Company's balance sheet at March 31, 2011, showed US$139.9 million in total assets, US$106.4 million in total liabilities, and stockholders' equity of US$33.5 million. As reported in the TCR on April 26, 2011, Samuel H. Wong & Co., LLP, in San Mateo, California, expressed substantial doubt about China CGame's ability to continue as a going concern, following the release of the Company's 2010 results. The independent auditors noted that the Company incurred a net loss of US$23.2 million in 2010. "As of Dec. 31, 2010, the Company has an accumulated deficit of US$11.2 million due to the fact that the Company continued to incur losses over the past few years. The Company also has difficulty to maintain sufficient working capital for operation activities." A copy of the Form 10-Q is available at http://is.gd/wzjsKE Changzhou, China-based China CGame, Inc. (Nasdaq: CCGM) is a self- developer of online games and provider of high-end building envelope architectural systems. CHINA IVY: Posts US$924,300 Net Loss in First Quarter --------------------------------------------------- China Ivy School, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of US$924,313 on US$1.69 million of revenues for the three months ended March 31, 2011, compared with a net loss of US$352,811 on US$1.66 million of revenues for the same period last year. The Company's balance sheet at March 31, 2011, showed US$18.08 million in total assets, US$17.73 million in total liabilities, all current, and stockholders' equity of US$348,562. As reported in the TCR on April 8, 2011, Michael T. Studer CPA P.C., in Freeport, New York, expressed substantial doubt about China Ivy School's ability to continue as a going concern, following the release of the Company's 2010 results. Mr. Studer noted that as of Dec. 31, 2010, and 2009, the Company had a working capital deficit of US$12,255,303 and US$11,038,871, respectively. The Company also had an accumulated deficit of US$5,949,928 as of Dec. 31, 2010, he stated. A copy of the Form 10-Q is available at http://is.gd/1DHNgQ Based in Jiangsu Province, China, China Ivy School, Inc., operates an educational facility under the name "Blue Tassel School" which provides a comprehensive curriculum required by the government of the People's Republic of China, supplemented by a broad range of elective courses which may be chosen from by the school's students. CHINA RENEWABLE: Posts US$94,700 First Quarter Net Loss ----------------------------------------------------- China Renewable Energy Holdings, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of US$94,708 on US$843,224 of revenue for the three months ended March 31, 2011, compared with a net loss of US$75,121 on US$271,250 of revenue for the same period of 2010. The Company's balance sheet as of March 31, 2011, showed US$1.0 million in total assets, US$1.4 million in total liabilities, all current, and a stockholders' deficit of US$411,524. De Leon & Company, P.A., in Pembroke Pines, Fla., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses from operations, net capital deficiencies, and negative cash flows from operations. A copy of the Form 10-Q is available at http://is.gd/RbQRqN Based in Wanchai, Hong Kong, China Renewable Energy Holdings, Inc., was incorporated under the laws of the State of Florida on Dec. 17, 1999. The Company was originally organized to provide business services and financing to emerging growth entities, and later redirected its business focus to market and to distribute energy-efficient products in China. CHINA TEL GROUP: Enters Into Amended Purchase Pact with Isaac ------------------------------------------------------------- China Tel Group, Inc., and Isaac Organization, Inc., entered into a second amended and restated stock purchase agreement on May 9, 2011. The original SPA was entered into by the parties on Feb. 9, 2010, as subsequently amended on March 5, 2010. The 2nd Amended SPA supersedes the terms of the prior operative SPA in its entirety. The stock, which is the subject of all of the parties' SPAs, consists of shares of China Tel's Series A common stock, together with warrants granting the holder the right to acquire Shares. The material changes reflected in the 2nd Amended SPA are: 1. Isaac's price per Share is reduced both prospectively and retroactively. Under the SPA, the nominal price per Share was $1.50. However, Isaac was entitled to issuance of additional shares without additional payment pursuant to a fully diluted calculation performed quarterly. Pursuant to the terms of the Original SPA and prior to the effective date of the 2nd Amended SPA, Isaac has paid $25,109,659; has been issued 29,166,110 Shares; and is entitled to issuance of 4,465,782 Shares that have not been issued. Isaac's total weighted average price per Share under the Original SPA is therefore $0.7466. Under the terms of the 2nd Amended SPA, for all Shares Isaac purchased between Feb. 8, 2010, through Nov. 30, 2010, the price per Share is adjusted to $0.2637, which is equal to the volume-weighted average of the closing price of Shares for the time period June 1, 2010, through Nov. 30, 2010. For all Shares Isaac purchased between Dec. 1 through 31, 2010, the price per Share is adjusted to $0.1707, which is equal to the volume-weighted average of the closing price of Shares during that time period. For all Shares Isaac purchased between Jan. 1, 2011, through the Effective Date of the 2nd Amended SPA, as well as for all Shares Isaac purchases after the Effective Date of the 2nd Amended SPA, the price per Share is the volume-weighted average of the closing price of Shares for the ten-day trading period immediately preceding the date the Company received or in the future receives any Installment. In no event will the price per Share be less than $0.18 for any Installment received after the Effective Date. The total aggregate number of Shares to which Isaac is entitled based on retroactive adjustments to the Purchase Price is 71,519,975 Shares. China Tel has received $6,017,000 from Isaac between Jan. 1, 2011, and the Effective Date. 2. The number of Warrants Isaac is entitled to receive is increased and the Warrant exercise price is reduced, both prospectively and retroactively. Under the Original SPA, Isaac was entitled to receive one Warrant for each dollar paid toward the Purchase Price. Pursuant to the terms of the Original SPA and prior to the Effective Date of the Original SPA, Isaac is entitled to issuance of 25,109,659 Warrants, none of which have been issued. Pursuant to the 2nd Amended SPA, China Tel will instead issue one Adjusted Warrant for each Share Isaac has been issued pursuant to the SPA, one Warrant for each Additional Share, and one Warrant for each Share Isaac purchases in the future. Under the SPA, each Warrant had an exercise price of $1.00. The total aggregate number of Adjusted Warrants to which Isaac is entitled is 105,151,867, inclusive of 25,109,659 Warrants earned by Isaac pursuant to the SPA that have not been issued. Under the 2nd Amended SPA, the exercise price is adjusted as: (i) for Adjusted Warrants earned based on Installments received between February 8 and Nov. 30, 2010, the exercise price will be $0.211, which is equal to 80% of the volume weighted average of the closing price of Shares for the time period June 1, 2010 through Nov. 30, 2010; (ii) for Adjusted Warrants earned based on Installments received between Dec. 1 to 31, 2010, the exercise price will be $0.137, which is equal to 80% of the volume weighted average of the closing price of Shares during that time period; and (iii) for Adjusted Warrants earned based on Installments received between Jan. 1, 2011, and May 2, 2011, as well as for Warrants earned based on receipt of future Installments, the exercise price will be the volume-weighted average of the closing price of Shares for the ten-day trading period immediately preceding the date the Company received or in the future receives the Installment giving rise to the right to issuance of the Warrant or Adjusted Warrant. The exercise price of Warrants and Adjusted Warrants is not subject to a cashless exercise, unless both parties agree in writing. 3. The time period during which Isaac has the right to exercise a Warrant is reduced prospectively and in part retroactively. Under the Original SPA, each Warrant had a five-year exercise period, as measured from the date each Warrant became subject to issuance. Under the 2nd Amended SPA, each of the Adjusted Warrants earned based on an Installment received on or before Dec. 31, 2010, will have the same five-year exercise period as the original Warrant it is intended to replace, which exercise period relates back to the date Isaac earned each Adjusted Warrant. Each of the Warrants or Adjusted Warrants earned based on an Installment received after Dec. 31, 2010, will have an exercise period of three years, which exercise period will either relate back or will begin to run from the date Isaac earned or earns each Warrant or Adjusted Warrant. 4. China Tel's obligations to periodically issue Isaac additional Shares pursuant to a fully diluted calculation whenever China Tel issues shares, options or warrants to others is eliminated. 5. Isaac's right to purchase a minimum of $205,000,000 worth of Shares, which would constitute 27.9% of the total equity of China Tel, is eliminated. 6. Isaac's maximum investment is reduced from $360,000,000 to $75,109,659. 7. The time period during which China Tel is entitled to make Funding Requests to receive Installments is extended from Dec. 31, 2011, to June 30, 2012. 8. China Tel's obligation to use the proceeds of the Purchase Price solely towards deployment of broadband telecommunications networks or sales, general and administrative expense is eliminated. Other material terms of the 2nd Amended SPA that are similar or identical to the Original SPA are: 9. The Parties intend to enter into a separate Registration Agreement, under which Shares and Warrants issued to Isaac may enjoy "piggyback" rights if China Tel registers any of its Shares in the future. 10. China Tel has the right to terminate Isaac's rights under the 2nd Amended SPA if Isaac fails to pay any Installment after a Funding Request and before expiration of the Grace Period. In such instance, China Tel may issue a Notice of Termination for Monetary Default, in which event China Tel is entitled to cancel 10% of the Shares, Warrants and Warrant Shares previously issued to Isaac. A full-text copy of the 2nd Amended Stock Purchase Agreement is available for free at http://is.gd/gqlUeM About China Tel Based in San Diego, California, and Shenzhen, China, China Tel Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/-- provides high speed wireless broadband and telecommunications infrastructure engineering and construction services. Through its controlled subsidiaries, the Company provides fixed telephony, conventional long distance, high-speed wireless broadband and telecommunications infrastructure engineering and construction services. ChinaTel is presently building, operating and deploying networks in Asia and South America: a 3.5GHz wireless broadband system in 29 cities across the People's Republic of China with and for CECT-Chinacomm Communications Co., Ltd., a PRC company that holds a license to build the high speed wireless broadband system; and a 2.5GHz wireless broadband system in cities across Peru with and for Perusat, S.A., a Peruvian company that holds a license to build high speed wireless broadband systems. The Company reported a net loss of $66,623,130 on $955,311 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $56,065,029 on $657,876 of revenue during the prior year. The Company's balance sheet at Dec. 31, 2010 showed $3,888,292 in total assets, $28,11,423 in total current liabilities, all current, $35,483 in mandatory redeemable Series B common stock, and a $24,260,614 total stockholders' deficit. As reported by the TCR on April 21, 2011, Mendoza Berger & Company, LLP, in Irvine, California, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has incurred a net loss of $56,041,182 for the year ended Dec. 31, 2009, cumulative losses of $165,361,145 since inception, a negative working capital of $68,760,057, and a stockholders' deficit of $63,213,793. CHINESEWORLDNET.COM INC: Recurring Losses Cue Going Concern Doubt ----------------------------------------------------------------- Chineseworldnet.com Inc. filed on May 13, 2011, its annual report on Form 20-F for the fiscal year ended Dec. 31, 2010. Chang Lee LLP, in Vancouver, Canada, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring losses from inception and requires additional financing for its intended business operations. The Company reported net income of US$296,604 on US$1.7 million of revenue for 2010, compared with a net loss of US$402,209 on US$906,455 of revenue for 2009. The Company's balance sheet at Dec. 31, 2010, showed US$2.2 million in total assets, US$384,673 in total liabilities, all current, and stockholders' equity of US$1.8 million. A complete text of the Form 20-F is available for free at: http://is.gd/R6zgvM Vancouver, Canada-based Chineseworldnet.com Inc. was incorporated under the laws of Cayman Islands on Jan. 12, 2000. The Company's business is to provide online internet services through its Chinese world-wide-web site. The online internet services comprise banner advertisements, web page hosting and maintenance, online promotion for customers, translation services, investment seminars, investment handbooks, website contest events, and subscription fees. SHANGHAI ZENDAI: Moody's Cuts Rating on Unsecured Debt to 'Caa1' ---------------------------------------------------------------- Moody's Investors Service has downgraded Shanghai Zendai Property Limited's senior unsecured debt rating from B3 to Caa1. At the same time, Moody's has put Zendai's B3 corporate family rating and Caa1 senior unsecured debt rating on review for possible downgrade. Ratings Rationale "Moody's expects that Zendai's onshore debt to total assets will likely remain above 15% in the next 12 -- 18 months, which will, in turn, result in a higher level of subordination risk. Such a development warrants notching the offshore senior unsecured debt to Caa1" says Jiming Zou, a Moody's Analyst. "The rating review reflects Zendai's increased refinancing risk as it has a material amount of trust finance and USD notes of around RMB 2 billion coming due in the next 12 -- 18 months and against the backdrop of tightening credit conditions in China," says Mr. Zou. "Zendai's property sales in January-April were well below Moody's expectation, a development which has further aggravated its liquidity position," adds Mr. Zou. In its review, Moody's will focus on Zendai's ability to improve its property contract sales, improve liquidity through disposing of its interests in property projects and/or raising new equity, refinance its trust loans and USD notes. The principal methodology used in rating Shanghai Zendai Property Limited was the Global Homebuilding Industry Methodology, published March 2009. Shanghai Zendai Property Ltd is a mainland China property developer focusing on the development, investment, and management of residential and commercial properties in China. The group currently has property projects under development in 12 cities in three regions, including northern China, Shanghai and adjacent areas, and Hainan Province. SOLAR ENERTECH: Posts US$3.1 Million First Quarter Net Loss --------------------------------------------------------- Solar Enertech Corp. filed its quarterly report on Form 10-Q, reporting a net loss of US$3.1 million on US$10.7 million of sales for the three months ended March 31, 2011, compared with a net loss of US$19.2 million on US$17.8 million of sales for the three months ended March 31, 2010. During the three months ended March 31, 2010, the Company recorded a cumulative loss on debt extinguishment of approximately US$18.5 million as a result of the Conversion Agreement and the Exchange Agreement. The Company's balance sheet at March 31, 2011, showed US$23.5 million in total assets, US$12.6 million in total liabilities, all current, and stockholders' equity of US$10.9 million. As reported in the Troubled Company Reporter on Dec. 22, 2010, Ernst & Young Hua Ming, in Shanghai, the Peoples Republic of China, expressed substantial doubt about Solar Enertech's ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted of the Company's recurring losses from operations. A full-text copy of the Form 10-Q is available for free at: http://is.gd/gpnREj About Solar EnerTech Mountain View, Calif.-based Solar EnerTech Corp. (OTC QB: SOEN) -- http://www.solarE-power.com/-- is a photovoltaic solar energy cell manufacturing enterprise. The Company has established a sophisticated 67,107-square-foot manufacturing facility at Jinqiao Modern Technology Park in Shanghai, China. The Company currently has two 25 MW solar cell production lines and a 50 MW solar module production facility. Solar EnerTech has also established a Joint R&D Lab at Shanghai University to develop higher efficiency cells and to put the results of that research to use in its manufacturing processes. ================ H O N G K O N G ================ LUCKY COSMOS: Keung and Wai Step Down as Liquidators ---------------------------------------------------- Stephen Liu Yiu Keung and David Yen Ching Wai stepped down as liquidators of Lucky Cosmos Limited on May 16, 2011. LUCKY GROUP: Keung and Wai Step Down as Liquidators --------------------------------------------------- Stephen Liu Yiu Keung and David Yen Ching Wai stepped down as liquidators of Lucky Group Investments Limited on May 16, 2011. NB HANTCHY: Creditors' Proofs of Debt Due July 5 ------------------------------------------------ Creditors of NB Hantchy International Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by July 5, 2011, to be included in the company's dividend distribution. The company's liquidator is: Liu, Wing Ting, Stephen 17th Floor, Shun Kwong Commercial Building No. 8 Des Voeux Road West Sheung Wan, Hong Kong RIBO INDUSTRIAL: Kwok Siu Man Appointed as Liquidator ----------------------------------------------------- Kwok Siu Man on May 20, 2011, was appointed as liquidator of Ribo Industrial Limited. The liquidator may be reached at: Kwok Siu Man 11/F, Lai Sun Commercial Centre 680 Cheung Sha Wan Road Kowloon, Hong Kong SINOWAY KINGDOM: Creditors' Proofs of Debt Due June 30 ------------------------------------------------------ Creditors of Sinoway Kingdom Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by June 30, 2011, to be included in the company's dividend distribution. The company's liquidator is: Lau Shiu Wah Room 609, Yu To Sang Building 37, Queen's Road Central, Hong Kong SKYNET LIMITED: Creditors' Proofs of Debt Due June 17 ----------------------------------------------------- Creditors of Skynet Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by June 17, 2011, to be included in the company's dividend distribution. The company's liquidator is: Ho Wai Ip Room 1903, World-Wide House 19 Des Voeux Road Central, Hong Kong SOCOMEC SICON: Placed Under Voluntary Wind-Up Proceedings --------------------------------------------------------- At an extraordinary general meeting held on May 13, 2011, creditors of Socomec Sicon Hong Kong Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Kan Ping Kee Units A & B, 15/F Neich Tower 128 Gloucester Road Wanchai, Hong Kong STAR EAST: Keung and Wai Step Down as Liquidators ------------------------------------------------- Stephen Liu Yiu Keung and David Yen Ching Wai stepped down as liquidators of Star East Culture Development Limited on May 16, 2011. STAR EAST ON-LINE: Keung and Wai Step Down as Liquidators --------------------------------------------------------- Stephen Liu Yiu Keung and David Yen Ching Wai stepped down as liquidators of Star East On-line Limited on May 16, 2011. TYRONE ELECTRIC: Members' Final Meeting Set for July 5 ------------------------------------------------------ Members of Tyrone Electric Motor Limited, which is in members' voluntary liquidation, will hold their final meeting on July 5, 2011, at 9:00 a.m., at 12 Science Park East Avenue, 6/F., Hong Kong Science Park, Shatin, New Territories, in Hong Kong. At the meeting, Yip Chee Lan and Regina Tam Lai Ha, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. UNIVERSE LINK: Keung and Wai Step Down as Liquidators ----------------------------------------------------- Stephen Liu Yiu Keung and David Yen Ching Wai stepped down as liquidators of Universe Link Industries Limited on May 16, 2011. WELL FORTUNE: Yu and Choi Step Down as Liquidators -------------------------------------------------- Yu Tak Yee Beryl and Choi Tze Kit Sammy stepped down as liquidators of Well Fortune Limited on May 23, 2011. WIDE TREASURE: Keung and Wai Step Down as Liquidators ----------------------------------------------------- Stephen Liu Yiu Keung and David Yen Ching Wai stepped down as liquidators of Wide Treasure Limited on May 16, 2011. YORK RISE: Creditors' Proofs of Debt Due June 30 ------------------------------------------------ Creditors of York Rise Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by June 30, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 18, 2011. The company's liquidator is: Chan Sek Kwan Rays Unit F, 12/F Seabright Plaza 9-23 Shell Street North Point, Hong Kong ========= I N D I A ========= C. A. V. COTTON: CARE Assigns 'CARE C' Rating to INR14.25cr Loan ---------------------------------------------------------------- CARE assigns 'CARE C' and 'PR4' Ratings to the bank facilities of C. A. V. Cotton Mills Ltd. Amount Facilities (INR cr) Ratings ---------- -------- ------- Long-term Bank Facilities 14.25 'CARE C' Assigned Short-term Bank Facilities 4.00 'PR 4' Assigned Long / Short-term Bank Facilities 14.00 'CARE C'/'PR 4' Assigned Rating Rationale The ratings are mainly constrained on account of highly stressed liquidity position of CAV Cotton Mills Ltd. and the other Sangeeth Group companies resulting in irregularity in debt servicing in the past. The ratings are also constrained by the group's high dependence on borrowed funds for its working capital requirement and recent volatility in raw-material prices. The ratings, however, favorably take into account experience and track record of the promoters of the Sangeeth group in textile business and installation of wind mills meeting majority of the group's power requirements. Improvement in its short-term liquidity situation along with overall improvement in the financial risk profile remains key rating sensitivity. About C.A.V. Cotton C.A.V. Cotton Mills Limited was incorporated in 1987 by the promoters of the Coimbatorebased Sangeeth Group. CCML is into manufacturing of combed knitting and weaving yarn from raw cotton. CCML operates from a single manufacturing facility located in Vellabommanpatty village in Dindigul district of Tamil Nadu having an installed capacity of 33,888 spindles which enables the company to manufacture 12 tons of combed and compact cotton yarn per day. The Sangeeth Group consists of four group companies Sangeeth Textiles Ltd, Sri Vasudeva Textiles Limited, Shri Mookambiga Spinning Mills Limited and C.A.V. Cotton Mills Limited. All the group companies of the Sangeeth Group are in the same line of business. HANS ISPAT: CARE Assigns 'CARE BB+' Rating to INR71.29cr LT Loan ---------------------------------------------------------------- CARE assigns 'CARE BB+' and 'PR4' ratings to bank facilities of Hans Ispat Limited. Amount Facilities (INR cr) Ratings ---------- -------- ------- Long-term Bank Facilities 71.29 'CARE BB+' Assigned Short-term Facilities 20.00 'PR4' Assigned Rating Rationale The ratings take into account relatively weak financial risk profile of Hans Ispat Ltd.; marked by low profitability, stressed liquidity and low networth base, risk associated with inherent cyclicality in steel sector and its exposure to fluctuation in raw material prices. The ratings however factor in the wide experience of promoters of the parent company, Electrotherm (India) Ltd. (ETIL), in the field of engineering, steel and electric vehicles business; its sales and distribution synergy with ETIL and improvement in operational efficiency post its acquisition by ETIL. The improvement in profitability & overall capital structure and any future capex and its funding profile are the key rating sensitivities. About Hans Ispat Hans Ispat Ltd. was incorporated in 1991 and was promoted by Mr. Hans Raj Kumar and Late Mr. Vijay Kant Kumar. In June 2010, HIL was acquired by Electrotherm (India) Ltd. (ETIL; rated: CARE BBB/PR3+) and with this, HIL became 100% subsidiary of ETIL. HIL has its manufacturing facilities for Billets (capacity 80,000 MTPA), TMT Bars (110,000 MTPA) and SS Bars (127,000 MTPA) at Anjar in the Kutch district of Gujarat. During past three years ending with FY10, the capacity utilization remained low. However, post- acquisition, capacity utilization improved in 9MFY11 and remained at 85-90%, as HIL is now benefited through wide sales and distribution network of ETIL. HIL sells its products in Gujarat and Rajasthan through dealers' network. During FY10, TMT bars constituted 88% of total sales, followed by SS/MS flats (11%) and SS/MS Billets (1%). During FY10 (Audited), HIL reported a total operating income of INR184.57 crore (FY09: INR172.15 crore) and a net loss of INR0.34 crore (FY09: profit INR0.28 crore). GAURAVH WINES: ICRA Assigns 'LB' Rating to INR5cr Bank Limits ------------------------------------------------------------- ICRA has assigned a 'LB' rating to the INR5.0 crore fund-based limits of Gauravh Wines Private Limited. The ratings factor in the long standing track record of promoters in the liquor, healthy return indicators given the trading nature of the business with little investments in gross block and benefits from synergies arising out of presence of group companies in liquor industry. However the ratings are constrained by high business risk inherent in the liquor industry owing to high taxes and stringent government controls and risk of the government not renewing the wholesale license annually. Presence in the lower end of the value chain with operations confined to trading activity leads to low profitability margins (as indicated by operating margins of 1.8% and net margins of 0.40%) and coverage indicators (as indicated by interest coverage of 1.5). Moreover the financial profile of the company is weak with a gearing as on 31st March 2010 at 3.28 times. Gauravh Wines Private Limited was started as a partnership firm by Mr. Gaurav Malhotra and Mr. Jaspal Singh. The firm was converted to a private limited company during FY 2008. The company has wholesale liquor licences for 3 districts in Punjab (Gurdaspur, Hoshiarpur and Ludhiana). The promoter's family has been associated with the liquor industry since the 1950's. Oasis Group of companies has diversified business operations in the fields of exports, hotels and liquor. The group has set up hotels and resorts at Mussoorie, Ludhiana and New Delhi. The group has set up Oasis distillery in Indore and Malbros International in Punjab. The group has also launched various brands of country liquor blends like Royal Arms Real Whisky, Every Day Gold Prestige Whisky, Old Fox XXX Matured Rum. For FY 2011, the company reported operating income of INR56.70 crore and PAT of INR0.23 crore on a provisional basis. JOYSHREE POWEROL: ICRA Assigns 'LBB-' Rating to INR3cr Term Loan ---------------------------------------------------------------- ICRA has assigned a 'LBB-' rating to the INR3.00 crore term loan and INR3.00 crore cash credit facilities of Joyshree Powerol. The outlook on the long term rating is stable. The rating takes into account the fiscal benefits available for JP, which are likely to favorably impact the profitability and cash flows of the firm going forward, the access to a ready customer base of a group company, which is in a similar line of business, the favorable demand outlook for diesel generator (DG) sets and the comfortable capital structure of the firm at present. The rating is however constrained by the limited track record of the firm, although mitigated to an extent by the experience of the promoters in running another company in the same industry, the dependence on the association with Mahindra & Mahindra Ltd for long term stability of the business, geographical concentration risks with most of the existing customers located in the state of Assam and increasing competition from other reputed DG set brands in India. While assigning the rating, ICRA has also factored in the legal status of JP as a partnership firm, including the risks of withdrawal of capital by the partners. Joyshree Powerol was incorporated in August 2009 as a partnership firm. The firm started assembling and selling of DG sets under the brand name of Mahindra Powerol from February 2011. The existing assembling facility of JP is located at Chang Sari in Assam, with an annual assembling capacity of around 1,800 DG sets. As per provisional numbers, during the two months of operations in 2010-11, JP posted a net loss of INR0.42 crore on an operating income of INR1.17 crore. MALUK EDUCATIONAL: ICRA Assigns 'LBB-' Rating to INR33.62cr Loan ---------------------------------------------------------------- ICRA has assigned a 'LBB-' rating to the INR33.62 crore term loan facilities and INR3.70 crore fund based facilities of Maluk Educational Health and Charitable Trust. The outlook on the long- term rating is stable. The rating considers the trust's healthy margins and the favorable demographics which are likely to drive demand for the education sector. The rating also considers the trust's highly-geared capital structure (due to significant debt funded capital expenditure), which is expected to remain stretched over the medium term. While lower occupancy levels in some of the institutions are likely to impact the profitability, the high competition is expected to impact growth in revenues and margins. MEHCT was founded in October 1993 as Muslim minority institution by Mr. Haji M. Abdul Majedu with the main objective of promoting education. The trust manages eight educational institutions, comprising four engineering colleges, a business school, a polytechnic college, a teacher training college and a school. All the institutions share the campus at Tiruchirapalli, Tamil Nadu. MEHCT's trustees comprise close family members of Mr. Haji M. Abdul Majedu. In October 2010, 4,793 students were enrolled in these institutions. For the year ended 2009-10, the trust reported net profit of INR2.0 crore on operating income of INR20.9 crore. According to unaudited results for the eight months ended November 2010, the trust reported operating profit of INR6.0 crore on operating income of INR17.7 crore. RANA SPONGE: ICRA Suspends 'LB+' Rating on INR82.32cr Bank Limits ----------------------------------------------------------------- ICRA has suspended the 'LB+' rating assigned to the INR82.32 crore fund based limits & 'A4' rating to the INR6 crore short term non fund based bank facilities of Rana Sponge 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 surveillance. ICRA will withdraw the rating in case it remains under suspension for a period of three years. RANA UDYOG: ICRA Suspends 'LBB-' Rating on INR40cr Bank Limits -------------------------------------------------------------- ICRA has suspended the rating of 'LBB-' with stable outlook assigned to the INR40 crores bank limits of Rana Udyog. The suspension follows ICRA's inability to carry out a rating surveillance in absence of the relevant information. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during surveillance. ICRA will withdraw the rating in case it remains under suspension for a period of three years. RATAN PLANET: ICRA Assigns 'LBB-' Rating to INR15cr Term Loans -------------------------------------------------------------- ICRA has assigned a long-term rating of 'LBB-' to the INR15.00 crore term loans of Ratan Planet. The long term ratings carry a Stable outlook. The rating is constrained on account of nascent stage of the Ratan Planet project and moderate bookings achieved (currently -25% of the project is sold) in the project which exposes it to market risk. This is also important as apart from equity and debt, a part of the cost is envisaged to be funded through customer advances which accentuate the funding risks for the project. The rating, however, favorably factors in the low approval risks for its project 'Ratan Planet' and the experience of the developers associated with its project. Going forward, ability to achieve sales and maintain collection efficiency will be amongst the key rating sensitivity factors. About Ratan Planet Ratan Planet is an Association of Persons (AOP) formed to carry out the development of its single project called Ratan Planet located at Naramau Banger, Kanpur (Uttar Pradesh). The AOP was formed in July 2009 and the parties involved are Nimmi Buildtech Private Limited (earlier known as Poonam Developers & Infrastructure (I) Private Limited), Ratan Housing Development Limited, Ratan Colonisers Private Limited and Ratan Apartments (India) Private Limited. RIDHAM SYNTHETICS: CARE Rates INR15.79cr LT Loan at 'CARE BB' ------------------------------------------------------------- CARE assigns 'CARE BB' rating to the bank facilities of Ridham Synthetics Pvt Ltd. Amount Facilities (INR cr) Ratings ---------- -------- ------- Long-term Bank Facilities 15.79 'CARE BB' Assigned Rating Rationale The rating is constrained by relatively small size of operations of the company and weak financial profile marked by low profitability margins, high gearing levels and stretched liquidity position. Further, project execution risk, fragmented and highly competitive nature of the industry also acts as constraining factor. The rating favorably factors in experience of the promoters and diversified customer profile of the company. The ability of the company to successfully shift and integrate its manufacturing facility and improve its profitability margins in the scenario of stiff competition are the key rating sensitivities. About Ridham Synthetics Incorporated in the year 1991, Ridham Synthetics Pvt Ltd is a fabric processing house with facility located at Mahalaxmi, Mumbai. The company mainly does job work and around 80% of its revenue is contributed by job work income. In FY10 RSPL earned profit of INR0.14 crore on total operating income of INR21.32 crore. During 9MFY11, RSPL posted PAT of INR0.36 crore on total operating income of INR16.52 crore. SHREE KRISHNA: ICRA Assigns 'LC' Rating to INR4cr Bank Loan ----------------------------------------------------------- ICRA has assigned a long term rating of "LC" to the INR4.00 crore (enhanced from INR62 crore) fund based facilities of Shree Krishna Paper Mills & Industries Limited. SKPMIL also has a long term rating of "LC" assigned to its INR5.00 crore Cumulative Redeemable Preference Shares and a short term rating of "A5" rating to the INR14.00 crore non fund based short term bank facilities. The ratings continue to remain constrained on account of weak financial performance of the company as is reflected in continued net losses of INR6.18 crore during the 9 month period ending December 2010 as against a net loss of INR8.46 crore in FY 2010. The losses till the end of FY 2010 already resulted in an erosion of net worth, which coupled with losses in current year has further deteriorated the financial profile. While the operational performance of the company in terms of capacity utilization levels has improved during the FY 2011, whereby its capacity utilization levels increased to 68% as against 28% in previous year, however growth in turnover coupled with weak profitability has resulted in stretched liquidity position for the company. The profitability of the company continues to remain weak in the backdrop of its inability to pass on the increase in raw material prices. Stretched liquidity profile has also resulted in delays in repayment of the loans due in April 2011, which have already been restructured twice during past four years, latest being in August 2009, whereby the company underwent a Corporate Debt Restructuring (CDR) exercise. Going forward, the ability of the company to improve its operational performance by achieving high capacity utilization of its plant on consistent basis, improving the profitability margins and reduce its debt levels will remain key rating sensitivities. About Shree Krishna Shree Krishna Paper Mills & Industries was incorporated in September 1972 by Pasari Group. The company has a coated paper manufacturing unit at Bahadurgarh, Haryana, which was acquired from Bansal Paper Mills in 1974. During 2005-06, the company also commissioned a Greenfield paper plant of 30000 MTPA to manufacture Printing and Writing Paper (PWP) at Kotputli Rajasthan. During FY 2010, the company reported net sales of INR65.36 crore and net loss of INR8.46 crore as against net sales of INR127.18 crore and net loss of INR1.16 crore during FY 2009. During the 9 month period ended December 2010, the company reported net sales of INR74.81 crore and net loss of INR6.18 crore. SYNERGY PUNCHING: ICRA Places 'LBB-' Rating on INR3.25cr Term Loan ------------------------------------------------------------------ ICRA has assigned a long-term rating of 'LBB-' to the INR3.25 crore term loan and INR4 crore fund based limits of Synergy Punching Private Limited. ICRA has also assigned an 'A4' rating to the INR0.50 crore fund-bases facilities and INR3 crore non-fund based facilities of the company. The long-term rating carries a stable outlook. The ratings take into account SPPL's moderate scale of operations resulting in limited economies of scale; vulnerability of its margins to fluctuations in raw material prices; high customer concentration risk; and high competitive pressures due to the fragmented nature of the industry. The ratings are also constrained by the moderate financial profile of the company as reflected by low operating margins, high working capital intensity of operations, moderately high gearing (1.31 times as on March 31, 2010). Further, the planned capex of the company is expected to further stretch the financial risk profile of the company over the short to medium term. The ratings however positively factor in the company's long track record of operations, its experienced management and expected increase in order inflow due to improved demand scenario. Going forward, the company's ability to increase its margins and keep its working capital requirements in check would remain key rating sensitivities. About Synergy Punching Synergy Punching Pvt Ltd was incorporated on Feb 2001 with Mr. H. M. Reddy, Mr. S.Nagaraju, Mr. Kenchaiah, and Mr. Chand Basha as the directors in the company. Since inception, SPPL is engaged in manufacturing of control panel structures which are used as base structures for assembly of control panels for various electronic systems. These products find their application in industries such as telecommunications, construction engineering and electrical components. The process of manufacturing involves procurement of raw materials, quality assessment, fabrication and heat treatment, preparation of structures, powder coating, packing and dispatch. The products are designed as per the specifications and requirements provided by the customers. The company has an installed capacity of manufacturing around 300 tones per month, which is currently utilized up to 95.00 percent. Recent Results SPPL reported an operating income of INR30.68 crore and a profit after tax of INR1 crore for 2009-10 as compared to an operating income of INR29.98 crore and a profit after tax of INR1.34 crore for 2008-09. UNITECH POWER: CARE Assigns 'CARE B+' Rating to INR30cr Bank Loans ------------------------------------------------------------------ CARE assigns 'CARE B+' and 'PR4' rating to the bank facilities of Unitech Power Transmission Ltd. Amount Facilities (INR cr) Ratings ---------- -------- ------- Fund-based Working Capital Limits 30.00 CARE B+ Assigned Non Fund-based Working Capital 145.00 PR4 Assigned Limits Rating Rationale The ratings are constrained due to under utilization of installed capacity by UPTL, subdued financial health of the company, irregularities observed in debt servicing by UPTL in the past and working capital intensive nature of operations. The rating draws strength from the reputed clientele of UPTL with a strong order book position, favorable demand for power distribution infrastructure and support from the promoter group company. Going forward, ability of UPTL to revamp growth in production and profitability in future and effective and efficient working capital management shall be the key rating sensitivities. About Unitech Power Unitech Power Transmission Ltd. was incorporated on Sept. 14, 1995, as a 60:40 joint venture between Unitech Ltd. and Hyundai Engg Construction Co. Ltd. by the name of Hyundai Unitech Electrical Transmission Ltd. During 2005, its name was changed to Unitech Power Transmission Ltd. Presently UPTL is a wholly owned subsidiary of Unitech Ltd. involved in manufacturing, fabricating, galvanizing, selling and marketing of steel lattice towers and all attachments, components and fixtures for electrical transmission lines in India. UPTL also executes turnkey projects from designing to laying of the transmission structure networks. The basic services offered by UPTL are powerline services along-with some telecommunication services. VINAYAK STEELS: ICRA Cuts Rating on INR5.3cr Term Loans to 'LBB+' ----------------------------------------------------------------- ICRA has downgraded the long term rating of the INR5.30 crore term loans and INR22.50 crore fund based facilities of Vinayak Steels Limited from 'LBBB-' to 'LBB+'. The outlook on the rating is Stable. ICRA has also downgraded the short term rating of the INR0.25 crore fund based facilities and INR0.50 crore non fund based facilities of VSL from 'A3' to 'A4+'. ICRA has assigned an A4+ rating to the INR5.00 crore fund based sub-limits of VSL. The revision in ratings reflects the significantly lower profitability of the company in 2010-11, deterioration in capital structure as well as debt coverage indicators and increase in working capital intensity of operations. These factors are however offset, to an extent, by the partially integrated nature of operations, increasing level of value addition in the business in recent years, favorable association of the company with Andhra Pradesh Gas Power Corporation Limited, which favorably impacts the cost of production to some extent and the favorable demand outlook for the steel industry driven by the infrastructure sector. While revising the ratings, ICRA has derived some comfort from the demonstrated ability of the promoters to bring in funds by way of equity and unsecured loans. The ratings also reflect the inherent cyclicality and the increasing competition in the highly fragmented steel rolled products industry and the exposure of the company to highly volatile raw material prices which has affected its operating margins during 2010-11. About Vinayak Steels VSL was incorporated in 1985 and subsequently taken over by the current management in 1995-96. Mr. Vinod Kumar Kedia is the Chairman cum Managing Director of the company. The company commenced operations with two 4 MT induction furnaces, which were refurbished and upgraded in 2002-03. The company acquired 0.63 million shares of APGPCL following which the company is entitled to 2.34 MW of APGPCL's power generated at favorable rates. VSL commissioned its 30,000 MT sponge iron unit in 2004-05 and a 54,000 MT rolling mill in 2007-08. The company increased its melting capacity by 30,000 MT in 2008-09. VSL sells TMT bars under the brand "Vinayak TMT" largely to the regional customers. VIVEKANANDA FORGING: CARE Assigns 'CARE BB' Rating to INR24cr Loan ------------------------------------------------------------------ CARE assigns 'CARE BB' and 'PR4' ratings to the bank facilities of Vivekananda Forging (India) Ltd. Amount Facilities (INR cr) Ratings ---------- -------- ------- Long-term Bank Facilities 24.0 'CARE BB' Assigned Short-term Bank Facilities 7.0 'PR4' Assigned Rating Rationale The ratings are constrained by the company's declining profitability, low profit levels & margin, volatile raw material & finished goods prices, high overall gearing ratio, stiff competition from organized and unorganized sector, high average collection period, dependence on the fortunes of steel industry and risks associated with VFL embarking on a relatively large capex programme. The ratings also factor in considerable experience of the promoter in steel industry, majority of the clients being government enterprises and improving outlook of the steel industry. Ability of the company to increase scale of operations and profitability in the wake of rising raw material prices and future performance of the steel industry would remain the key rating sensitivities. About Vivekananda Forging Vivekananda Forging (India) Ltd. was incorporated in 1988 by Shri Subrata Mondal of Kolkata. In 1992, the company commenced operation by setting up forged steel manufacturing unit (15,000 MTPA) at Uluberia, West Bengal. The company is mainly engaged in manufacturing of railway items and its major customers are government enterprises (viz. railways & defense) and steel companies. VFL earned PBILDT of INR5.6 crore (INR6.2 crore in FY09) and PAT (after defd. tax provision) of INR0.7 crore (Rs.1.4 crore in FY09) on net sales of INR51.7 crore in FY10 (INR61.6 crore in FY09). GCA and interest coverage in FY10 were moderate. Long-term debt equity ratio was almost nil as on March 31, 2010. However, overall gearing ratio was high as on March 31, 2010. VFL has plans to set up a new manufacturing facility at an estimated project cost of around INR100 crore. However, the project location, application for debt and the implementation modalities are in the drawing board stage. ================= I N D O N E S I A ================= BANK MEGA: Fitch Ratings Affirms Individual Rating at 'D' --------------------------------------------------------- Fitch Ratings has placed Bank Mega's National Long Term 'A+(idn)' Rating and subordinated debt 'A(idn)' rating on Rating Watch Negative. At the same time, Fitch has affirmed the bank's Individual rating at 'D' and Support rating at '4'. This follows Bank Indonesia's announcement that it has imposed sanctions on Bank Mega as a result of weak internal control. The Rating Watch Negative reflects the potential negative impact that the sanctions would have on Bank Mega's business profile and funding. Under the sanctions, the bank is prohibited from opening new branches, from renewing or opening new deposit on call and from offering negotiable certificates of deposits in one year. Fitch believes the sanctions would limit the bank's rapid growth in the medium term. The sanctions would also adversely affect the bank's short and medium-terms liquidity profile given its reliance on time deposits and the less steady nature of this type of funding. Despite the possibility that the bank's funding may contract, liquidity at present remains reasonably robust given Bank Mega's low loans-to-deposits ratio (55% at end-March 2011). This, together with its adequate capital buffer, has resulted in the Individual rating being affirmed. Fitch expects to resolve the Rating Watch Negative once there is evidence of improvement of Bank Mega's internal controls and of the impact on the bank's credit profile from the sanctions. Fitch also notes that the bank must set up an escrow account to cover potential losses of up to IDR191bn stemming from the ongoing dispute between the bank and its depositors, namely PT Elnusa Tbk and Batu Bara district administration. However, Fitch believes that the potential losses can be absorbed by the bank's net profit (Q111: IDR 259bn; FY 10: IDR 952bn). Bank Mega's ratings are currently based on satisfactory capital position, liquid assets and modest profitability. The ratings also consider its concentrated loan book and small franchise relative to peers. Its total capital adequacy ratio and Tier 1 ratio was 16.3% and 13.9%, respectively at end-2010 (2009: 18% and 15.1%) which are adequate for supporting further loan growth. Bank Mega was established in 1969 and, at end-2010, was among the 15 largest banks in Indonesia by assets. It was acquired by the privately-owned Para Group in 1996. After a public listing in 2000 and subsequent rights issues, Para Group's stake was diluted to 57.82% at end-2010. ========= J A P A N ========= TOKYO ELECTRIC: Begins Compensation Payments to Affected Farmers ---------------------------------------------------------------- Mitsuru Obe at Dow Jones Newswires reports that Tokyo Electric Power Co. began to pay initial compensation Tuesday to farmers for their lost income due to contamination of their crops from radioactive fallouts from the stricken Fukushima Daiichi nuclear complex. In the first compensation payments to businesses hit by the March 11 disaster, Dow Jones relates, Tepco paid out JPY500 million (US$6 million) to farmers who suffered losses because they were unable to sell their produce due to concerns over radiation. Separately, Dow Jones reports, Tepco paid JPY47 billion in living expenses to about 50,000 households who evacuated the area around the plant. According to Dow Jones, farmers who were requested to stop shipments of their produce by the government or the local authorities are eligible for the payment program. Dow Jones notes that Tepco said it is reimbursing half of the losses suffered by the farmers, pending final settlement at a later date. Agricultural cooperatives in four prefectures around the plant have been asking for JPY13.4 billion in compensation, the report says. In addition, Dow Jones says, a new compensation guideline adopted Tuesday by a government panel decided that Tepco should be liable for damages farmers suffered due to the rumors of radiation contamination that had affected sales from the region. Tepco also said it will start to accept requests for compensation from small business owners who have been forced to abandon their operations due to the government's evacuation order, according to Dow Jones. 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. The Troubled Company Reporter-Asia Pacific, citing Dow Jones Newswires, reported on May 17, 2011, that Japan's government unveiled a comprehensive plan to protect Tepco from bankruptcy and fund compensation claims stemming from the country's worst-ever nuclear energy disaster that are expected to total more than JPY2.5 trillion. Dow Jones said the rollout of the plan, along with comments from government officials, raised fresh concerns, however, about Tepco's future and whether shareholders and bondholders will be expected to share in the pain. ========= K O R E A ========= HYNIX SEMICONDUCTOR: Fitch Ratings Affirms IDRs at 'BB-' -------------------------------------------------------- Fitch Ratings has revised South Korea-based Hynix Semiconductor Inc.'s Outlook to Positive from Stable. Its Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs) have been affirmed at 'BB-'. Its senior unsecured rating has also been affirmed at 'BB- '. The Outlook revision reflects Hynix's robust operating results and the notable improvement in its financial profile during FY10. It also reflects Fitch's view that the company's financial profile will remain in line with that of FY10 over the next 12-18 months, given the stable industry outlook and its market position as the second-largest dynamic random access memory (DRAM) maker globally. Fitch believes that maintenance of a strong financial profile and management's ongoing commitment to deleveraging will remain key for any positive rating action over the next 12-18 months. Specifically, the ratings may be upgraded if the company maintains its EBIT margin above 6% and FFO adjusted leverage below 2x with sustained positive FCF generation. Despite a sharp erosion in memory prices since H210, Hynix's FY10 revenues grew 53% to KRW12.1trn and its EBITDA margin rose to 50.2% from 36.7%. More importantly, Fitch acknowledges the deleveraging progress the company has made over the past two years with positive free cash flow (FCF) generation in FY09 and FY10. Accordingly, Hynix's funds from operation (FFO) adjusted leverage decreased to 1.1x at FYE10 from 6.2x at FYE08 with adjusted net debt falling to KRW4.4trn from KRW8.3trn Fitch expects the stable operating environment to continue throughout FY11 despite likely continued price declines for both DRAM and NAND. Although weak demand and sustained over-supply will continue to put pressure on DRAM prices, price erosion is unlikely to accelerate given DRAM manufacturers' conservative capex allocation for commodity DRAM. Fitch further notes that the proliferation of smart devices, such as smartphones and tablet PCs, has enabled Hynix to mitigate the negative impact from weak PC demand, and the company's average selling prices have been supported by an increasing share of specialty DRAMs used in smart devices and servers. In addition, Fitch expects that the rapid penetration of such smart devices will continue to provide strong growth momentum for NAND. Under this environment, Hynix will likely improve its revenue mix by increasing the NAND revenue share close to 25% in FY11 from 17% in FY10. Fitch expects Hynix to maintain its deleveraging effort. Although cash generation from operations will weaken from FY10 given the downtrend in memory prices, the company should still be able to generate positive FCF after capex and reduce total debt. ==================== N E W Z E A L A N D ==================== REAL GROOVY: Closes Shop; 12 Staff Lost Jobs -------------------------------------------- The Dominion Post reports Real Groovy, the largest independent music store in the Upper Cuba St., Wellington area, is shutting its doors for the last time. Chances of the store reopening are remote, the report notes. According to the Dominion Post, owner Mark Thomas announced in April that Real Groovy would be shutting down, with 12 staff losing their jobs. Mr. Thomas attributed the store closure to a decline in business caused by the economic recession, rising fuel prices, big-chain retailers able to sell at reduced prices, file-sharing, and competition from online retailers and auction sites, The Dominion Post relays. The Dominion Post notes that despite selling most of his stock, it was unclear whether Mr. Thomas would be able to cover his debts with the shop's closure. YARROWS BAKERS: Goes Into Receivership, BDO to Take Over -------------------------------------------------------- Radio New Zealand News reports that Yarrows Bakers has been placed in receivership. The report relates that accountants BDO have been brought in to take over the company. Radio New Zealand notes that the company has been on the market for some time and sale talks are continuing. The report says that receiver Brian Mayo Smith of BDO said the company will continue to operate until a buyer is found. Mayo Smith told Checkpoint Yarrows' directors requested that the company be placed into receivership due to a number of problems which could not be resolved, according to Radio New Zealand. The report notes that Mr. Smith said the only business in receivership at this stage is the factory in Manaia. Other operations in Rotorua and Australia are not affected. Yarrows Bakers began exporting in the late 1970s and in 1996, won the contract for the Subway sandwich chain throughout Australasia. It produces 30,000 frozen dough rolls a week for Subway in New Zealand, Australia, and parts of Asia. It also supplies frozen dough to Foodstuffs supermarkets in New Zealand and Coles in Australia, as well as to North America, the Pacific, United Arab Emirates and Japan. ===================== P H I L I P P I N E S ===================== BANCO FILIPINO: Court of Appeal Denies Bank's Bid to Reopen ----------------------------------------------------------- Michelle V. Remo at INQUIRER.net reports that the Court of Appeals has denied the petition of Banco Filipino Savings & Mortgage Bank to be reopened after being ordered closed by the Bangko Sentral ng Pilipinas earlier this year. The appellate court denied the petition filed by BF's stockholders to stop the implementation of the Central Bank's order to place it under receivership, INQUIRER.net says. According to INQUIRER.net, the appellate court said in a resolution report obtained by the media on Tuesday that it found no merit to the request of the closed thrift bank. "After having considered and deliberated on the petition and the comments of the respondents, as well as the respective discussions and argumentations stated therein, we do not find sufficient cause to grant it," the appellate court said in the resolution penned by Associate Justice Agnes Reyes-Carpio, INQUIRER.net reports. INQUIRER.net relates that the appellate court said the Bangko Sentral ng Pilipinas was right to have placed BF under receivership, noting that it is the role of the regulator to protect the public against problem banks. It added that the regulatory action against a bank suffering from financial woes is necessary to maintain public confidence on the banking system. The Bangko Sentral ng Pilipinas closed Banco Filipino after the bank's liabilities overwhelmed its assets by PHP8.4 billion, and then filed charges against the bank's directors and officials. BSF also placed the bank 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. ********* 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 ***