/raid1/www/Hosts/bankrupt/TCRAP_Public/110706.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, July 6, 2011, Vol. 14, No. 132
Headlines
A U S T R A L I A
DENMAC FORD: BJC Investments Buys Denmac Ford Business
REDGROUP RETAIL: Administrators Sell Two A&R Stores in Queensland
REDGROUP RETAIL: Sells Online Business to Pearson Australia Group
RELIANCE RAIL: Moody's 'B3' Rating Unaffected by Train Acceptance
SENSASLIM: Goes Into Administration After ACCC Spat
SUNENERGY GROUP: ASIC Seeks to Wind Up Two SunEnergy Firms
TFS CORP: Moody's Assigns Definitive 'B3' Corp. Family Rating
TRIO CAPITAL: Former CEO Banned as Director For 15 Years
* AUSTRALIA: Number of Insolvencies Up 10% in April 2011
H O N G K O N G
C & Y ACCOUNTING: Creditors' Proofs of Debt Due July 15
DAILOY DEVELOPMENT: Tom and Lo Appointed as Liquidator
ENPRESS CORPORATION: Final Meetings Set for August 10
EXTENSION INVESTMENT: Creditors' Proofs of Debt Due August 5
GOLDEN UNIT: Members' Final Meeting Set for July 22
HOTEL AMENITIES: Creditors' Meeting Set for July 18
HSIN CHONG: Members' Final Meeting Set for August 1
JET BILLION: Lo Wing Hung Steps Down as Liquidator
KWAN TSEUNG: Wong Ho Ming Kenneth Steps Down as Liquidator
METRO-ADS INTERNATIONAL: Creditors' Proofs of Debt Due August 1
MONELINK DEVELOPMENT: Creditors' Proofs of Debt Due August 5
NGAI LIK: Final Meetings Set for August 10
PNEUMOCONIOSIS MUTUAL: Members' Final Meeting Set for August 20
RISEGATE LIMITED: Gao Luxington Steps Down as Liquidator
SKYNET LIMITED: Members' Final Meeting Set for August 2
I N D I A
AJAY GUPTAS: CRISIL Rates INR198 Million Cash Credit at 'B'
ALOM EXTRUSIONS: CRISIL Assigns 'BB+' Rating on INR23.6MM Loan
BENTEX CONTROL: CRISIL Assigns 'BB' Rating to INR50MM Cash Credit
CORPORATE POWER: Fitch Assigns 'BB+' Rating on INR1.45B Bank Loans
DEVDOOT COTTON: CRISIL Assigns 'B+' Rating to INR60MM Cash Credit
EVERSHINE TOWER: Fitch Affirms 'B-(ind)' National LT Rating
EXOTICA INT'L: Fitch Affirms 'B-(ind)' Rating on INR125MM Loan
JAGANNATH ALLOYS: CRISIL Assigns 'BB' Rating to INR50MM Term Loan
KOTHARI WASPAP: CRISIL Reaffirms 'B+' Rating on INR90MM Cash Debt
METECNO INDIA: Fitch Affirms National LT Rating at 'BB-(ind)'
OB INFRASTRUCTURE: CRISIL Reaffirms 'D' Rating on INR4.38BB Loan
PARSEWAR SEEDS: CRISIL Places 'B' Rating on INR70MM Pledge Loan
R.S. VANIJYA: Fitch Affirms 'B-(ind)' Rating on INR80MM Loan
RANGER COTTON: CRISIL Assigns 'B' Rating to INR20MM Demand Loan
RESTORE MACHINE: Fitch Rates INR40MM Cash Credit at 'B-(ind)'
S R ENTERPRISE: Fitch Affirms 'B-(ind)' Rating on INR160MM Limits
SARASWATI ENTERPRISE: CRISIL Rates INR170 Million LOC at 'P4'
SHREEJI JEWELLERY: CRISIL Assigns 'D' Rating to INR30MM LT Loan
SMS SHIVNATH: CRISIL Reaffirms 'B-' Rating on INR2-Bil. LT Loan
SRI JAGANNATHA: CRISIL Assigns 'BB' Rating to INR67.8MM LT Loan
SUKHSAGAR INFOTECH: Fitch Affirms 'B-(ind)' INR150MM Limits Rating
SYNERGY UNITED: CRISIL Reaffirms 'P4+' Rating on INR40MM LOC
VM COAL: CRISIL Assigns 'BB' Rating to INR45MM Letter of Credit
J A P A N
SOFTBANK CORP.: Moody's Reviews 'Ba2' Issuer Rating for Upgrade
K O R E A
* SOUTH KOREA: To Examine Finances of 85 Savings Banks
M A L A Y S I A
EON BANK: Moody's Withdraws Deposit & Financial Strength Ratings
N E W Z E A L A N D
ALLIED FARMERS: To Divest Rural Merchandising Business
AMI INSURANCE: Gets NZ$1.3-Bil. Re-insurance For Catastrophe Cover
AORANGI SECURITIES: Statutory Managers Won't Pay Legal Bills
HAMILTON AMATEUR: In Liquidation; Hamilton City Council Takes Over
SOUTH CANTERBURY: Southbury Reports Show NZ$187 Million Hole
S I N G A P O R E
DOVECHEM HOLDINGS: Court to Hear Wind-Up Petition July 15
IP INTERACTIVE: Creditors' Proofs of Debt Due July 21
PEGU INTERNATIONAL: Creditors' Proofs of Debt Due Aug. 1
PROCTER & GAMBLE: Creditors' Proofs of Debt Due July 29
RATHGIBSON PTE: Creditors' Proofs of Debt Due August 2
VITC ASIA: Court to Hear Wind-Up Petition July 15
T A I W A N
AMERICAN INT'L: Ruen Chen Submits Docs For Nan Shan Bid Approval
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A U S T R A L I A
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DENMAC FORD: BJC Investments Buys Denmac Ford Business
------------------------------------------------------
The Queensland Business Review reports that BJC Investments has
vowed to restore the Denmac Ford brand after purchasing the
business and assets of the failed Brisbane dealership.
According to the report, BJC Investments General Manager Glenn
Ross said the business will continue to trade under the Denmac
Ford brand and will re-hire a number of former staff in addition
to the remaining 23 members.
"We've retained a great team of people and they all have a strong
vision for the long term future of the company," QBR quotes
Mr. Ross as saying. "Everyone involved is excited to now have the
opportunity to continue building their solid reputation in the
community for professional and honest service," he says.
Deloitte Partner John Greig, says QBR, has thanked those involved
in the successful transaction, which is expected to breathe new
life into the business.
The purchase of Denmac Ford by BJC Investments went through on
June 23 and follows the buy-out of Bremer Ford by Q Ford, QBR
discloses.
About Denmac Ford
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.
Brisbane's Denmac Ford has been an established Ford dealer
servicing the city's south western suburbs for more than 30 years.
Deloitte partners Richard Hughes and John Greig were appointed as
joint and several Receivers and Managers of both Denmac Ford Pty
Ltd and Bremer Ford Pty Ltd on May 11, 2011.
REDGROUP RETAIL: Administrators Sell Two A&R Stores in Queensland
-----------------------------------------------------------------
The administrators of REDgroup Retail Pty Ltd announced Tuesday
the sale of two REDgroup-owned Angus & Robertson (A&R) bookstores.
The stores are Harbourtown and Carindale, both in Queensland.
These stores will continue to operate under different owners and
different names. Negotiations continue over the future of a third
Queensland store.
The remaining 16 REDgroup-owned A&R stores will close before the
end of July. The closures will impact on 174 jobs. An additional
eight staff have been made redundant from REDgroup headquarters
over the past week.
The closures will not affect the 47 A&R franchise stores, which
will continue to operate independently, although it is likely
these will undergo various name changes in coming weeks.
The development comes three weeks after the announcement of the
closure of 42 A&R stores and one day after the announcement of the
successful sale of the REDgroup online business to Pearson
Australia Group Pty Ltd.
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
REDGROUP RETAIL: Sells Online Business to Pearson Australia Group
------------------------------------------------------------------
REDgroup Retail Pty Ltd administrator Ferrier Hodgson announced on
July 4 that it had sold the REDgroup online business to Pearson
Australia Group Pty Ltd.
The REDgroup online business includes the Borders and Angus &
Robertson Web sites, which employ five people, and a customer
service and distribution centre employing 11.
Administrator Ferrier Hodgson Partner Steve Sherman said the sale
would preserve all 16 jobs.
"I am pleased we have been able to save these jobs and preserve
the online business which has a significant profile within
Australian book retailing," Mr. Sherman said.
Pearson has also made an agreement with eBook retailer Kobo to
assure continued access to eBooks purchased through the Australian
REDgroup online sites.
Pearson Australia Group Pty Ltd is part of the international media
company, Pearson plc. Its Australian businesses include Penguin
Group (Australia), Pearson Australia, The Learning Ladder and
United Book Distributors.
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
RELIANCE RAIL: Moody's 'B3' Rating Unaffected by Train Acceptance
-----------------------------------------------------------------
Moody's Investors Service notes the announcement that the first
Waratah train set manufactured by Reliance Rail Pty Ltd under the
NSW Rolling Stock public private partnership (PPP) project passed
practical completion. Reliance Rail Finance Pty Limited (the
financing vehicle of the Reliance Rail Group) has a senior rating
of B3 and a subordinated rating of Caa2. Both ratings are on
negative outlook. Moody's has said that the ratings of Reliance
Rail Finance are unaffected by the announcement.
"Acceptance of the first set is a key operating milestone,
notwithstanding the significant delays experienced by the
project", says Nicola O'Brien, a Moody's Vice President/Senior
Analyst.
Acceptance of the train set eases concerns over further delivery
delays says O'Brien, adding "however, the lack of a concrete
resolution to the potential funding gap in February 2012 continues
to drive the B3 rating and its negative outlook."
Moody's will look for tangible developments to be made in
overcoming the potential funding gap, and the absence of a clear
resolution in the near future will put further downward pressure
on the rating as February 2012 approaches and the window of
opportunity to remedy narrows.
Reliance Rail's ratings and negative outlook are primarily driven
by Moody's concerns surrounding the potential for a funding gap
from February 2012 due to its reliance on a wrapped bank facility
(to complete the delivery phase of the project) that includes outs
to funding should the bank facilities' financial guarantors be
insolvent.
Based on Reliance Rail's legal advice, if both of the bank
facilities' financial guarantors -- Syncora Guarantee Inc. (rated
Ca, developing outlook) and FGIC UK Limited (unrated) -- were to
become insolvent, then the banks may have the right to cancel
their funding commitments. In June 2010, Reliance received a
letter from its banks that they are reserving their rights in
respect of the bank facility required to complete the delivery
phase of the Waratah project. Notwithstanding Syncora recently
completing a remediation plan and re-commencing claims payments,
the financial profiles of both Syncora and FGIC remain very weak.
Moody's notes that Reliance Rail maintains that the banks'
reservation of rights letter itself does not assert an actual
default or represent a step towards the exercise of enforcement or
termination rights. Reliance Rail has also stated, based on advice
it has taken, that it believes that the banks have no current
rights to cancel the facility.
The B3/negative rating also considers the risk that the bank
facility, and potentially other debt, could be re-priced at a
level that will substantially pressure Reliance Rail's financial
profile.
The rating will likely be downgraded in the event of wrapper
insolvency or if there is no satisfactory resolution in relation
to availability of the AU$357 million facility. Furthermore, the
ratings may also be downgraded if there is evidence of further
delays in the delivery phase.
On the other hand, the ratings could be upgraded if the potential
funding challenges are resolved.
The last rating action was on December 14, 2010, when Moody's
downgraded RRF's underlying rating to B3 with a negative outlook
from Ba3 on review for downgrade.
The principal methodologies used in this rating were Construction
Risk in Privately-Financed Public Infrastructure (PFI/PPP/P3)
Projects published in December 2007, and Operating Risk in
Privately-Financed Public Infrastructure (PFI/PPP/P3) Projects
published in December 2007.
Reliance Rail Finance Pty Ltd is the funding vehicle for the
Reliance Rail Group. Reliance Rail Group was the successful
consortium appointed by Railcorp in 2006 to deliver the NSW
Rolling Stock public private (PPP) project. Reliance Rail is in
the process of manufacturing 78 eight-car "Waratah" trains for the
Sydney suburban rail network and has completed an associated
maintenance facility.
SENSASLIM: Goes Into Administration After ACCC Spat
---------------------------------------------------
SmartCompany reports that SensaSlim has been placed into
administration and has appointed John Kukulovski of Jirsch
Sutherland as administrator. A meeting of creditors will be held
on Monday, July 11.
SmartCompany, citing The Age, relates that Mr. Kukulovski is
expected to recommend to creditors that SensaSlim be liquidated,
posing big questions about whether franchisees will get a return
on money invested to sell the herbal product, which was promoted
as being backed by medical research.
The Age reported that an unnamed company spokesman blamed the
collapse on the freezing of its bank accounts a couple of weeks
ago, according to SmartCompany.
The Federal Court in Sydney last month upheld a freeze on
SensaSlim's assets after allegations from the Australian and
Competition and Consumer Commission that the company had misled
and deceived consumers, SmartCompany notes. SensaSlim said at the
time it had little money other than the frozen bank accounts and
Justice Jacobsen said the court would quickly consider evidence on
how much money the company needed to continue operating,
SmartCompany relates.
SmartCompany disclosed that listed law firm Slater & Gordon has
flagged a multi-million dollar law suit against the company,
saying it had been approached by around 70 franchisees, who had
paid around AU$60,000 each for rights to sell the company's diet
spray product. SmartCompany relates that the franchisees' lawyer,
Van Moulis of Slater & Gordon, previously said the law firm was
waiting for the ACCC decision before deciding whether it would
file compensation claims on behalf of investors.
SensaSlim products, promoted as clinically proven and 100% safe on
its Web site, are still being sold in Australia.
SensaSlim is an operator of diet spray.
SUNENERGY GROUP: ASIC Seeks to Wind Up Two SunEnergy Firms
----------------------------------------------------------
The Australian Securities & Investments Commission has applied to
the Federal Court of Australia to wind up two companies related to
the SunEnergy group of companies.
ASIC has applied to wind up CAN 124 647 909 Limited, formerly
SunEnergy Limited, and SunEnergy Asia Pacific Pty Limited on just
and equitable grounds.
In particular, ASIC alleges that the companies:
-- have been involved in multiple contraventions of
corporations legislation and are not complying with
their obligations under that legislation; and
-- are not being properly managed and investors' funds
may be at risk.
ASIC has applied for Martin Lewis, of Ferrier Hodgson, Adelaide,
to be appointed liquidator of the companies.
The matter will be heard before a Registrar of the Federal Court
in Adelaide on July 20, 2011.
On March 12, 2011, ASIC obtained summary judgment against ACN 124
647 909 Limited in the Victorian Magistrates' Court for failure to
provide financial reports for the financial years of 2008, 2009
and 2010.
Both companies were also the subject of a Federal Court Action,
finalized on March 24, 2011, in which ASIC obtained orders and
declarations that the companies and one of the directors of the
companies, John Ernest Price, had engaged in conduct that was
misleading or deceptive, or likely to mislead or deceive, as part
of a fundraising undertaken by the SunEnergy companies and
Mr. Price between May 2007 and October 2010.
TFS CORP: Moody's Assigns Definitive 'B3' Corp. Family Rating
-------------------------------------------------------------
Moody's Investors Service has assigned a definitive B3 corporate
family rating to TFS Corporation Ltd (TFS) and a definitive B3
senior secured debt rating to the US$150 million guaranteed senior
secured notes issue due 2018.
Ratings Rationale
The definitive rating on these debt obligations confirms the
provisional rating assigned on May 2, 2011. The outlook on the
rating is stable.
TFS issued US$150 million of 11% guaranteed senior secured notes
due 2018. The net proceeds from the offering will be used for
potential land acquisitions and for general corporate purposes,
including other Indian Sandalwood acquisition opportunities and
potential corporate acquisitions.
TFS' B3 rating reflects the company's reliance on potentially
volatile revenue and cash flow generated from the sale of its
investment products to retail and wholesale investors, uncertainty
around the company's ability to continue to execute its strategy
of increasing sales of its wholesale investment products, the
potential for regulatory challenges significantly reducing or
eliminate demand for the company's MIS investment products and
exposure to event and execution risk in relation to the company's
Indian Sandalwood plantations and initial harvest expected in
FY13.
Balancing these concerns is the company's large plantation
holdings expected to begin maturing from FY13 onwards, strong and
growing demand for authentic and legally harvested Indian
Sandalwood oil and heartwood, the high value of the company's
Indian Sandalwood plantation assets and expected production as
well as the company's vertically integrated operations.
The notes will be issued by TFS and will be guaranteed by 10 of
its subsidiaries, which together currently represent over 99% of
total assets and 95% of operating profit for the group.
Investors in the notes will also receive 370 warrants for each
US$1,000 principal amount of the notes purchased, resulting in a
total of 55.5 million warrants to be issued. The warrants will
expire on 15 July 2018.
The issuance of the warrants is subject to TFS shareholder
approval at a general meeting that is expected to be held in early
August 2011. In the event that shareholder approval for the issue
of the warrants is not obtained by July 15, 2012, then special
interest on the notes would commence accruing until the options
are issued.
Specifically, if by July 2012, TFS does not receive shareholder
approval and is unable to satisfy the issuance of the 55.5 million
warrants through its 15% maximum annual placement capacity, then
the notes will begin to accrue an additional 2% in special
interest. If TFS chooses not to issue up to its maximum annual
placement capacity then this special interest would increase to 5%
and allow the note holders the right to put the notes to TFS.
At the closing of the offering, 50% of the net proceeds (US$75m)
will be deposited into an escrow account that restricts use of the
cash in the account. One-third of the restricted cash will become
available for use upon TFS receiving shareholder approval for the
issue of the warrants. The remaining two-thirds of the restricted
cash will become available once specific sales targets have been
met for Beyond Carbon institutional sales.
The principal methodology used in rating TFS Corporation Limited
was the Global Paper and Forest Products Industry Methodology,
published September 2009.
TFS Corporation Limited is a vertically integrated manager and
grower of Indian Sandalwood plantations, with 3,788 hectares under
plantation as of Dec. 31, 2010, in the East Kimberley region of
Western Australia. TFS' business primarily comprises the
cultivation, growth and processing of Indian Sandalwood
plantations through the sale of two investment products to
wholesale and retail investors. TFS generated revenue of AUD108.1
million and EBITDA of AUD62 million in FY2010.
TRIO CAPITAL: Former CEO Banned as Director For 15 Years
--------------------------------------------------------
The Australian Securities & Investments Commission said Monday
that it has entered into enforceable undertakings (EUs) with
former directors of Trio Capital Limited, Rex Phillpott and
Natasha Beck.
Mr. Phillpott was the chief executive officer, director and
secretary of Trio Capital from October 2005. He was also on the
Risk and Compliance Committee. Mr. Phillpott has agreed not to
act as a director of any corporation or in any role within the
financial services industry for 15 years.
Ms. Beck was a non-executive director of Trio Capital from June
2008 and was a member of the investment committee of Trio Capital
from September 2009. Ms. Beck has agreed not to act in any role
within the financial services industry for two years. She has
also agreed not to act as a director of any corporations for two
years with the exception of Rumi Holdings Pty Ltd, a company of
which she is a director and the sole shareholder.
ASIC Chairman, Greg Medcraft, said: "The responsibilities of
directors and officers of responsible entities are not diminished
through outsourcing to investment managers. ASIC will hold these
gatekeepers to account.
"ASIC is concerned that both Mr. Phillpott and Ms. Beck failed in
their duties as officers of the responsible entity of the Astarra
Strategic Fund. ASIC believes it's appropriate that they not be
involved in the financial services industry or act as directors."
The EUs follow the guilty plea of Mr. Shawn Richard to two charges
of dishonest conduct in relation to his role as a director of the
investment manager of the Astarra Strategic Fund. Mr. Richard is
currently on bail awaiting sentence.
It also follows the EU from financial planner, Kilara Financial
Solutions Pty Ltd, who recommended retail investors switch their
superannuation holding into a fund of which Trio was the
responsible entity.
Trio Capital was formerly the trustee of five superannuation
entities and the responsible entity for 25 managed investment
schemes, including the Astarra Strategic Fund. The Astarra
Strategic Fund was a fund of hedge funds which in December 2009
had reported assets of AUD125 million. Investors in the Astarra
Strategic Fund included several superannuation trusts managed by
Trio Capital as well as self-managed superannuation funds and
direct investors.
The Astarra Strategic Fund invested in several questionable
overseas hedge funds, mostly based in the Caribbean. ASIC
commenced an investigation into Trio Capital in October 2009 over
concerns about the legitimacy of its investments. Trio Capital
was placed into administration on Dec. 16, 2009. On April 16,
2010, the NSW Supreme Court ordered that the Astarra Strategic
Fund be wound up. Since this time, the liquidator of Trio Capital
has been unable to recover the vast majority of the investments
made by the Astarra Strategic Fund.
Soon after ASIC commenced its investigation into Trio Capital, the
Australian Prudential Regulation Authority commenced a concurrent
investigation. Both agencies have been cooperating with each
other with respect to their investigations. Investigations by
both agencies are continuing.
* AUSTRALIA: Number of Insolvencies Up 10% in April 2011
--------------------------------------------------------
CFO World, citing the June 2011 Business Stress Report published
by liquidation firm Dissolve, reports that the number of
Australian businesses declaring insolvency climbed 10% year-on-
year in April.
CFO World relates that the Business Stress Report showed that 812
companies entered some form of insolvency administration in April.
This is the highest April number since Dissolve started taking
records in 1999, and is 23% higher than the average over the
previous five years, according to CFO World.
According to CFO World, Dissolve said its previous research
indicates that the number of insolvencies has been trending back
up since the recovery following the crisis. And insolvency levels
should remain high for the rest of 2011 due to the backlog of
pending recovery actions at the Australian Tax Office.
CFO World discloses that for the 12 months ending in April, the
number of insolvencies grew 6% on the prior year -- and 16% on the
five-year trend -- to 9,747.
The estimated percentage of companies which successfully
restructured to emerge from administration - calculated from the
portion that execute a deed of company arrangement - was just 5.1%
for the year to April, CFO World discloses. The proportion has
been trending down since 1999, when it was recorded at 14.2%.
================
H O N G K O N G
================
C & Y ACCOUNTING: Creditors' Proofs of Debt Due July 15
-------------------------------------------------------
Creditors of C & Y Accounting Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by July 15, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on June 20, 2011.
The company's liquidator is:
Wong Tat Chi
22K, Goklfield Industrial Building
144-150 Tai Lin Pai Road
Kwai Chung
New Territories
Hong Kong
DAILOY DEVELOPMENT: Tom and Lo Appointed as Liquidator
------------------------------------------------------
Tom Cheuk Kuen and Lo Shui San Zue on June 10, 2011, were
appointed as liquidators of Dailoy Development Limited.
The liquidator may be reached at:
Tom Cheuk Kuen
Flat A, 15/F
Ka Wing Building
No. 27-27A Granville Road
Tsim Sha Tsui, Kowloon
Hong Kong
Lo Shui San Zue
7/F, Pearl Oriental Tower
225 Nathan Road
Kowloon, Hong Kong
ENPRESS CORPORATION: Final Meetings Set for August 10
-----------------------------------------------------
Creditors and contributories of Enpress Corporation Limited will
hold their final meetings on Aug. 10, 2011, at 2:30 p.m., and
3:00 p.m., respectively at Unit 511, Tower 1, Silvercord, 30
Canton Road, Tsimshatsui, Kowloon, in Hong Kong.
At the meeting, Ho Man Kit Horace and Kong Sze Man Simone, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
EXTENSION INVESTMENT: Creditors' Proofs of Debt Due August 5
------------------------------------------------------------
Creditors of Extension Investment (Hong Kong) Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Aug. 5, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on June 30, 2011.
The company's liquidator is:
Mak Kin Hung
1404, Two Grand Tower
625 Nathan Road
Kowloon
GOLDEN UNIT: Members' Final Meeting Set for July 22
---------------------------------------------------
Members of Golden Unit Limited will hold their final general
meeting on July 22, 2011, at registered office.
At the meeting, Chim Fun Lung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
HOTEL AMENITIES: Creditors' Meeting Set for July 18
---------------------------------------------------
Creditors of Hotel Amenities International Limited will hold their
meeting on July 18, 2011, at 4:00 p.m., for the purposes provided
for in Sections 241, 242, 243, 244 255A and 283 of the Companies
Ordinance.
The meeting will be held at Room 203, Duke of Windsor Social
Service Building, 15 Hennessy Road, Wanchai, in Hong Kong.
HSIN CHONG: Members' Final Meeting Set for August 1
---------------------------------------------------
Members of Hsin Chong (Project Management) Limited will hold their
final general meeting on Aug. 1, 2011, at 10:15 a.m., 5/F, Dah
Sing Life Building, 99- 105 Des Voeux Road Central, in Hong Kong.
At the meeting, Yan Tat Wah, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
JET BILLION: Lo Wing Hung Steps Down as Liquidator
-------------------------------------------------
Lo Wing Hung stepped down as liquidator of Jet Billion Limited on
June 24, 2011.
KWAN TSEUNG: Wong Ho Ming Kenneth Steps Down as Liquidator
----------------------------------------------------------
Wong Ho Ming Kenneth stepped down as liquidator of Kwan Tseung
Company Limited on June 13, 2011.
METRO-ADS INTERNATIONAL: Creditors' Proofs of Debt Due August 1
---------------------------------------------------------------
Creditors of Metro-Ads International Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Aug. 1, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Philip Brendan Gilligan
7th Floor, Alexandra House
18 Chater Road
Central, Hong Kong
MONELINK DEVELOPMENT: Creditors' Proofs of Debt Due August 5
------------------------------------------------------------
Creditors of Monelink Development Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Aug. 5, 2011, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on June 30, 2011.
The company's liquidator is:
Mak Kin Hung
1404, Two Grand Tower
625 Nathan Road
Kowloon
NGAI LIK: Final Meetings Set for August 10
------------------------------------------
Creditors and contributories of Ngai Lik Logistic Company Limited
will hold their final meetings on Aug. 10, 2011, at 3:30 p.m., and
4:00 p.m., respectively at Unit 511, Tower 1, Silvercord, 30
Canton Road, Tsimshatsui, Kowloon, in Hong Kong.
At the meeting, Ho Man Kit Horace and Kong Sze Man Simone, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
PNEUMOCONIOSIS MUTUAL: Members' Final Meeting Set for August 20
---------------------------------------------------------------
Members of Pneumoconiosis Mutual Aid Association Limited will hold
their final meeting on Aug. 20, 2011, at 2:30 p.m., at Unit 1-4,
G/F, Cheong On House, Nam Cheong Estate, Shamshuipo, Kowloon, in
Hong Kong.
At the meeting, Kong Sing Yin, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
RISEGATE LIMITED: Gao Luxington Steps Down as Liquidator
--------------------------------------------------------
Gao Luxington stepped down as liquidator of Risegate Limited on
June 21, 2011.
SKYNET LIMITED: Members' Final Meeting Set for August 2
-------------------------------------------------------
Members and creditors of Skynet Limited will hold their final
meetings on Aug. 2, 2011, at 10:00 a.m., and 10:30 a.m.,
respectively at Room 1903, 19/F, World-Wide House, 19 Des Voeux
Road Central, in Hong Kong.
At the meeting, Ho Wai IP, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
=========
I N D I A
=========
AJAY GUPTAS: CRISIL Rates INR198 Million Cash Credit at 'B'
-----------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the cash credit
facility of Ajay Guptas Shree Nath Jewellers Pvt Ltd.
Facilities Ratings
---------- -------
INR198 Million Cash Credit B/Stable (Assigned)
The rating reflects AGSN's weak financial risk profile, driven by
large working capital requirements, limited track record and scale
of operations with geographic concentration, and susceptibility to
volatility in gold prices. These rating weaknesses are partially
offset by AGSN's comfortable regional position, significant
revenue growth, and promoters' extensive industry experience.
Outlook: Stable
CRISIL believes that AGSN will continue to maintain its
comfortable market position in New Delhi, over the medium term.
The outlook may be revised to 'Positive' in case of significant
improvement in AGSN's capital structure, most likely because of
equity infusion by promoters and more-than-expected cash accruals.
Conversely, the outlook may be revised to 'Negative' if AGSN's
financial risk profile deteriorates further on account of large,
debt-funded working capital requirements or lower-than-expected
profitability.
About Ajay Guptas
AGSN manufactures and trades (wholesale and retail) in diamond
jewellery (contributes 50% of total revenues), gold jewellery
(20%), and gold bars (30%) at its flagship showroom in New Delhi.
The wholesale segment of the business contributes around 40% of
total sales. The company has an in-house manufacturing facility
for both gold and diamond jewellery.
AGSN was set up in 1993 by Mr. Daya Chand Gupta with a gold
jewellery showroom in New Delhi. In 1997, the promoter sold this
showroom and in 2002, opened a bigger showroom. AGSN is a closely
held company with family members as stakeholders. The founder's
son Mr. Ajay Gupta handles AGSN's operations.
For 2010-11 (refers to financial year, April 1 to March 31),
AGSN's profit after tax (PAT) is estimated at INR9 million on net
sales of INR1300 million as against a PAT of INR 8 million on net
sales of INR646 million for 2009-10.
ALOM EXTRUSIONS: CRISIL Assigns 'BB+' Rating on INR23.6MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Alom Extrusions Ltd.
Facilities Ratings
---------- -------
INR20.0 Million Cash Credit Limit BB+/Stable (Assigned)
INR90.0 Million Cash Credit/Packing BB+/Stable (Assigned)
Credit
INR23.6 Million Term Loan BB+/Stable (Assigned)
INR155.0 Million Letter of Credit/ BB+/Stable (Assigned)
Bank Guarantee
INR20.0 Mil. Bill Purchase P4+ (Assigned)
Discounting Facility
The ratings reflect susceptibility of AEL's operating margin to
volatility in raw material prices and to intense market
competition, and expected pressure on the company's liquidity, as
the company extends funds to its promoters' other group companies.
These rating weaknesses are partially offset by AEL's above-
average financial risk profile marked by low gearing and moderate
debt protection metrics, moderately diversified end-user industry
profile, and established relationships with suppliers.
Outlook: Stable
CRISIL believes that AEL will maintain its business risk profile
over the medium term, supported by healthy growth prospects for
its end-user industries and its promoters' industry experience.
The outlook may be revised to 'Positive' if AEL generates more-
than-expected revenues, driven by increased capacity utilization,
while sustaining improvement in operating margin. Conversely, the
outlook may be revised to 'Negative' if AEL's profitability comes
under considerable pressure, or its capital structure deteriorates
as a result of larger-than-expected debt-funded capital
expenditure or large working capital borrowings.
About Alom Extrusions
AEL was incorporated in 1980 and promoted by Mr. Sawal Ram
Jhunjhunwala. The company manufactures aluminium-extruded
products, which are used in buildings and other architectural
structures, electronic and electrical transmission lines, consumer
durables, solar panels, and automotive appliances. The company has
two operating units, one each in Howrah (West Bengal) and in
Balasore (Odisha), with a combined capacity of 20,800 tonnes per
annum (tpa). The promoter of the company has recently set up a new
company, Alom Poly Extrusion Ltd, which is engaged in
manufacturing double-wall corrugated high-density polyethylene
pipes. The total project cost was around INR339 million, funded by
term loan of INR207 million and balance from equity capital from
promoters and AEL. The project was commissioned in April 2011.
For 2010-11 (refer to financial year ended, April 1 to March 31),
AEL has reported, on provisional basis, a profit after tax (PAT)
of INR50 million on net sales of INR1585 million; it reported a
PAT of INR118 million on net sales of INR1508 million for 2009-10.
BENTEX CONTROL: CRISIL Assigns 'BB' Rating to INR50MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Bentex Control & Switchgear Company.
Facilities Ratings
---------- -------
INR50 Million Cash Credit BB/Stable (Assigned)
INR3 Million Letter of Credit P4+ (Assigned)
INR10 Million Bank Guarantee P4+ (Assigned)
The ratings reflect BCSC's small scale of operations,
susceptibility to volatility in raw material prices, large working
capital requirements, and below-average financial risk profile
marked by a small net worth, large investments in group companies,
and average debt protection metrics. These rating weaknesses are
partially offset by the extensive experience of BCSC's promoters
in the electrical products industry, and the firm's established
dealer network.
Outlook: Stable
CRISIL believes that BCSC will continue to benefit from its
established dealer network and its promoters' extensive industry
experience, over the medium term. The outlook may be revised to
'Positive' if BCSC significantly scales up its operations and
improves its profitability, leading to more-than-expected cash
accruals. Conversely, the outlook may be revised to 'Negative' if
the firm generates less-than-expected cash accruals, reports
larger-than-expected working capital requirements or withdrawal of
capital or unsecured loans, or contracts a large quantum of debt
to fund its capital expenditure.
About Bentex Control
Set up in 1984, BCSC is a partnership firm that manufactures
household and industrial electrical products such as electric
meters, motor starters, miniature circuit breakers, and switches.
The firm is part of the SKN Bentex group, which was set up in 1964
by Mr. K L Chopra. The group is also engaged in other lines of
business which includes compressed and piped natural gas
distribution business under Haryana City Gas Distribution Pvt Ltd,
and manufacturing of liquified petroleum gas cylinders and
regulators and other kitchen appliances under group entities SKN
Industries Ltd and SKN Associates Pvt Ltd. It also undertakes real
estate and commercial projects in the group entities Natasha
Housing Urban Development Ltd and Net Biz Technologies Ltd.
BCSC's profit before tax (PBT) is estimated at INR8.6 million on
an operating income of INR200.7 million for 2010-11 (refers to
financial year, April 1 to March 31), against a PBT of INR7.2
million on an operating income of INR223.3 million for 2009-10.
CORPORATE POWER: Fitch Assigns 'BB+' Rating on INR1.45B Bank Loans
------------------------------------------------------------------
Fitch Ratings has assigned Corporate Power Limited's Phase-II,
INR23,870 million senior project bank loans an expected National
Long-term rating of 'BBB-(ind)(exp)'. Fitch has also assigned
CPL's Phase-I, INR20,300 million senior project bank loans a final
rating of 'BBB-(ind)' and its Phase-I, INR1,450 million
subordinate project bank loans a final National Long-term rating
of 'BB+(ind)'. The Outlook is Stable.
The final ratings assigned to the Phase-I bank loans follow the
receipt of transaction documents conforming to information already
received, including executed financing agreements and the fixed-
price EPC contract. The final ratings are the same as the expected
ratings assigned in May 2010. The final rating for the Phase-II
senior long-term loans is contingent upon the receipt of
transaction documents conforming to information already received,
including executed financing and power purchase agreements.
CPL is implementing a thermal power project in two phases of 540WM
each. Fitch has consolidated the projected cash flows of both
phases to arrive at its rating case. Although they are expected to
have separate escrow accounts/common loan agreements, lenders will
share security on a pari passu basis.
In assigning final ratings to the Phase-1 debt, Fitch notes that
physical and financial progress with respect to construction of
Phase-I is broadly in line with its May 2010 expectations.
However, the agency recognizes that residual completion risk
remains with possible delays or difficulties in completing the
acquisition of balance land for the power plant as well as the
coal mining block (owned by a sponsor group company, Corporate
Ispat Alloys Limited-CIAL).
Phase-II is in the nascent stages of construction (7%) and
progressing on schedule. The project cost of INR31.82 billion is
funded by INR23.87 billion of debt and INR7.95 billion of equity.
So far, equity of INR2.5 billion has been injected and debt of
INR4.45bn has been drawn down. The project has a fixed time,
fixed- price turnkey EPC contract with sponsor group company,
Abhijeet Project Ltd (APRL) and a back-to-back equipment supply
contract with Bharat Heavy Electricals Ltd
(BHEL,'AAA(ind)'/Stable). While term debt required for the
project is underwritten by State Bank of India (SBI,
'AAA(ind)'/Stable), a formal financing agreement has been executed
only for INR11.3 billion. However, it is envisaged that several
features incorporated in the Phase-I documentation will also be
built into the proposed agreement for Phase-II, including creation
of a debt service reserve account (funded out of project cash
flows) equivalent to six months' debt service and a cash sweep
mechanism where 50% of the residual surplus in the cash flow
'waterfall' is applied towards prepayment of loans.
Off-take risk is partially mitigated as Phase-II proposes to sell
270MW to Government of Jharkhand on a regulatory tariff basis (25-
years level tariff assumption in the base case is INR2.89 per
kWh). While the proposed sale of the remaining 270MW on a merchant
basis exposes the project to the vagaries of the merchant power
market and hence, is subject to long-term revenue risks, given the
protracted power deficit that the country faces, Fitch believes
that this will not have a major negative impact on CPL in the
short to medium term, particularly since the tariff assumptions
have been conservatively taken at INR3.5/unit till FY15 and
INR3/unit thereafter.
The Phase-II is exposed to fuel supply and price risk as a lower-
than-expected increase in domestic coal production could result in
a coal supply shortfall when the project becomes operational.
However, the Ministry of Coal, Govt. of India, has awarded coal
linkage for the Phase-II, with likely supplies from Central
Coalfields Limited mines. Further, if approval for mining an
additional 3.45MTPA is granted to CIAL, any remaining coal, after
feeding Phase-I could be used for Phase-II, providing marginal
price/supply insulation.
Key risks to the rating will be negative developments during the
crucial project completion phase (including time and cost
overruns, difficulties in land acquisition, delayed equipment
supply and inadequate equity infusion) and pertaining to the
ability to source coal from the sponsor company and/or secure
supplies from government linkages as planned.
DEVDOOT COTTON: CRISIL Assigns 'B+' Rating to INR60MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the cash credit
facility of Devdoot Cotton Industries.
Facilities Ratings
---------- -------
INR60 Million Cash Credit B+/Stable (Assigned)
The rating reflects DCI's small scale of operations in a highly
fragmented cotton industry, vulnerability of operations to adverse
changes in government policies, and weak financial risk profile,
marked by high gearing, weak debt protection metrics, and small
net worth. These rating weaknesses are partially offset by the
extensive experience of DCI's partners in the cotton ginning
industry.
Outlook: Stable
CRISIL believes that DCI will continue to benefit over the medium
term from the extensive experience of its partners in the cotton
ginning industry. The outlook may be revised to 'Positive' if the
firm's scale of operations improves significantly along with its
financial risk profile, backed by equity infusion by the partners.
Conversely, the outlook may be revised to 'Negative' if DCI's
profitability declines, or capital withdrawals or debt-funded
capital expenditure weakens its financial risk profile.
About Devdoot Cotton
Established in 1996, DCI is a partnership firm engaged in cotton
ginning. It has capacity of 300 bales per day. The firm, based in
Morbi (Gujarat), was set up by Mr. Vasantlal Patel along with his
brothers, Mr. Dilipkumar Patel, Mr. Rameshbhai Patel, Mr.
Pareshbhai Patel, and other family members. About 85% of DCI's
sales are derived from ginned cotton and the remaining from cotton
seeds.
DCI is estimated to report a book profit of INR2.60 million on net
sales of INR224.68 million for 2010-11 (refers to financial year,
April 1 to March 31), as against reported book profit of INR0.15
million on net sales of INR214.44 million for 2009-10.
EVERSHINE TOWER: Fitch Affirms 'B-(ind)' National LT Rating
-----------------------------------------------------------
Fitch Ratings has affirmed India-based Evershine Towers Pvt.
Ltd.'s National Long-Term Rating at 'B-(ind)' with a Stable
Outlook. The agency has also affirmed ETPL's bank loans:
-- INR110 million fund-based limits: 'B-(ind)'; and
-- INR35 million non-fund based limits: 'F4(ind)'.
The affirmations continue to reflect the trading nature of ETPL's
business and its weak financial metrics, which is reflected in its
low EBITDA margins (financial year ended March 31, 2010 (FY10):
0.8%), high net adjusted leverage (net adjusted debt/EBITDA for
FY10: 31.2x) and low EBITDA interest coverage (FY10: 0.8x).
However, the provisional results for FY11 indicate some
improvement in ETPL's financial performance with EBITDA margins of
1.75%, net financial leverage of around 12x, and EBITDA interest
coverage of around 1.2x.
The ratings draw some benefit from the support extended by group
companies and the past experience of its promoters in the trading
of plastic, textiles and jewellery items. The management is
planning to consolidate the Sonthalia Group as per companies
operating under similar business verticals. This will improve the
consolidated entity's operational efficiency and enhance its
financial performance.
Positive rating guidelines include a substantial improvement in
ETPL's EBIDTA margins, along with a reduction in its net financial
leverage to below 6x and an interest cover of above 2x on a
sustained basis. Negative rating guidelines include a net leverage
of above 15x and an interest cover of below 1x.
ETPL is a part of the Kolkata-based Sonthalia group and is engaged
in the trading of jewellery, fabric and plastic products. In FY11,
it had net revenue of INR990.8 million (FY10: INR837.2 million).
EXOTICA INT'L: Fitch Affirms 'B-(ind)' Rating on INR125MM Loan
--------------------------------------------------------------
Fitch Ratings has affirmed India-based Exotica International's
National Long-Term rating at 'B-(ind)' with a Stable Outlook. The
agency has also affirmed Exotica's bank loans:
-- INR125 million cash credit limits: 'B-(ind)';
-- INR20 million fund based limits: 'F4(ind)'; and
-- INR25 million non-fund based limits: 'F4(ind)'.
The affirmation reflects the proprietorship nature of Exotica's
business and the fact that 88% of its income in FY10 (financial
year ended March 31, 2010) was derived from trading activities.
The ratings are also constrained by the fragmented nature of the
plastic industry, along with increasing competition from other
low-cost international manufacturers which is reflected in its low
EBITDA margins of 1.19% in FY10 (FY09: 0.99%) that remain
vulnerable to fluctuations in raw material costs, determined by
crude oil prices.
Fitch notes Exotica's lack of any formal long-term agreements for
sales and purchases of its products. The agency further notes that
the company is heavily reliant on working capital requirements to
increase its volumes, even though there had been an improvement in
its working capital cycle to 91 days in FY10 from 140 days in
FY09. The ratings remain constrained by the fact that Exotica has
been funding its long-term requirements mainly through inter-group
funds, injected in the form of unsecured interest free loans. The
cash flows of the company indicate poor fund management.
Positive rating guidelines include Exotica's net financial
leverage (net debt/ EBIDTA) of below 10x, with sustained EBITDA
margins of 2%. Negative rating guidelines include a decline in its
interest coverage to below 1x.
In FY10, Exotica reported net sales of INR 2,071 million (FY09:
INR1,522.8 million) and a total adjusted debt outstanding of
INR467 million (FY09: INR355.9 million). The latter comprises
INR129.7 million of cash credit, INR200 million of unsecured loans
from group companies, INR6.7 million of term loans and INR330.6
million of other fund-based limits. Exotica reported negative free
cash flow of INR149.4 million in FY10; Fitch expects it to stay
negative over the short-to-medium-term, given its high working
capital requirements
M/s Exotica International is a proprietorship concern engaged in
the manufacturing and trading of plastic products and textiles.
JAGANNATH ALLOYS: CRISIL Assigns 'BB' Rating to INR50MM Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the long-term bank
facilities of Jagannath Alloys Ltd.
Facilities Ratings
---------- -------
INR50 Million Term Loan BB/Stable (Assigned)
INR124 Million Cash Credit BB/Stable (Assigned)
The rating reflects JAL's average financial risk profile, marked
by small net worth, moderate gearing and debt protection metrics,
small scale of its operations, the susceptibility of its margins
to raw material price volatility, and low operating efficiency,
marked by low capacity utilization and moderate working capital
requirements. These weaknesses are partially offset by the
experience of JAL's promoters in the steel rolled products
industry.
Outlook: Stable
CRISIL believes that JAL's scale of operations will remain small
and that its financial risk profile will remain constrained by its
small net worth, over the medium term. The outlook may be revised
to 'Positive' in case of considerable improvement in the company's
scale of operations and profitability, leading to better-than-
expected cash accruals. Conversely, the outlook may be revised to
'Negative' in case any large, debt-funded capital expenditure by
JAL exerts further pressure on its financial risk profile.
About Jagannath Alloys
JAL was set up as a private limited company in 2003. The company
manufactures various re-rolled products such as rounds, hex and
squares of various grades and sizes ranging from 16 millimetre
(mm) to 80 mm. JAL became a listed company on the Ludhiana Stock
Exchange (LSE) by virtue of takeover of a listed company called
Titan Comfine Ltd. JAL has three re-rolling mill machines, with a
total capacity of 150 tonnes per day (tpd). The company has also
undertaken a backward integration initiative, by setting up its
own furnace with a capacity of 100 tpd to manufacture ingots.
JAL is expected to report a profit after tax (PAT) of INR14.6
million on net sales of INR1190 million for 2010-11 (refers to
financial year, April 1 to March 31), as against a PAT of INR5.1
million on net sales of INR669.5 million for 2009-10.
KOTHARI WASPAP: CRISIL Reaffirms 'B+' Rating on INR90MM Cash Debt
-----------------------------------------------------------------
CRISIL's ratings on the Kothari Waspap Pvt Ltd continue to reflect
Kothari's weak financial risk profile, marked by a weak liquidity,
low profitability and weak debt protection metrics, high working
capital intensity, and customer concentrated revenue profile.
These rating weaknesses are partially offset by Kothari's moderate
market position in the regional market supported by its
established sourcing network.
Facilities Ratings
---------- -------
INR90.0 Million Cash Credit B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Kothari will continue to benefit over the
medium term from its wide operating network and its promoters'
industry experience. The outlook may be revised to 'Positive' if
Kothari generates substantial cash accruals, leading to more-than-
expected improvement in its financial risk profile. Conversely,
the outlook may be revised to 'Negative' if deterioration in
Kothari's debtor profile results in weakened liquidity, or if the
company undertakes a large, debt-funded capital expenditure
programme, thereby weakening its capital structure.
About Kothari Waspap
Kothari trades in waste paper and scrap products. It procures
waste paper and metal scrap in the form of old newspapers, annual
reports, notebooks, and textbooks, and other plastic, wooden, and
metal scrap, from various retailers and semi wholesalers, and
sells the same to paper manufacturing and recycling mills. The
company also procures newsprint from paper mills, and sells the
same to regional newspaper companies in Gujarat.
Kothari reported a profit after tax (PAT) of INR5.0 million on net
sales of around INR395.5 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR3.2 million on net
sales of INR361.0 million for 2008-09. For 2011-12, the company
has reported provisional net sales of INR407.8 million.
METECNO INDIA: Fitch Affirms National LT Rating at 'BB-(ind)'
-------------------------------------------------------------
Fitch Ratings has affirmed Metecno (India) Private Limited's
National Long-Term rating at 'BB-(ind)'. The Outlook is Stable.
The agency has also affirmed the ratings on MIPL's bank
facilities:
-- INR122 million term loans: 'BB-(ind)';
-- INR130 million fund-based working capital limits:
'BB-(ind)'; and
-- INR200 million non-fund based working capital limits:
'F4(ind)'.
Fitch notes that MIPL's performance improved significantly in 2010
in line with Fitch's expectations, with increased capacity
utilizations. In 2010, the company's net turnover improved to
INR818.3 million (2009: INR644.6 million) and operating EBITDA to
INR55.7 million (2009: INR39.6 million). Consequently, it reported
financial leverage (adjusted debt/EBITDA) of 4.3x (2009: 5.1x) and
EBITDA interest cover of 1.7x (2009: 1.3x) in 2010. Also, in 2010
MIPL diversified its product portfolio with the introduction of
mineral wool sandwich panels and acquired reputed new clients in
both public and private sectors.
The ratings continue to be constrained by MIPL's vulnerability to
economic slowdown and/or volatility in its products' end-use
industries. Further, the company is contemplating significant
debt-funded capex plans to set up a new facility, which could lead
to higher financial leverage for at least two years following the
investment.
For the four months ended April 31, 2011, MIPL indicated un-
audited figures of INR318.9 million turnover and INR26.9 million
operating EBITDA at an EBITDA margin of 8.4%. Fitch estimates that
with the company's existing operations if the improvement in its
financial performance is sustained and no new large capital
expenditure is undertaken, the adjusted debt/ EBITDA may decrease
below 4.0x.
A positive rating guideline would be a sustained fall in MIPL's
adjusted debt/ EBITDA to below 4.0x. A negative rating guideline
would be a sustained increase in its adjusted debt/ EBITDA to
above 6.0x.
MIPL manufactures insulated sandwich panels, single skin sheets
and steel structures used in roofing/ walling/doors, constructing
industrial and commercial buildings, cold storage and telecom
shelters in various sectors. MIPL started commercial production in
March 2007. Its order book as of end-May 2011 was INR270.2 million
at 0.33x of 2010 turnover.
OB INFRASTRUCTURE: CRISIL Reaffirms 'D' Rating on INR4.38BB Loan
----------------------------------------------------------------
CRISIL's rating on the bank loan facility of OB Infrastructure Ltd
continues to reflect instances of delay by OB Infra in servicing
its debt. The company is yet to service the term loan installment
of INR153.5 million that was due on May 27, 2011. The company
serviced the installment of INR153.5 million due on November 27,
2010 in January 2011; this installment was funded by its
promoters.
Facilities Ratings
---------- -------
INR4.3862 Billion Rupee Term Loan D (Reaffirmed)
INR13.8 Million Proposed Long-Term D (Reaffirmed)
Bank Loan Facility
OB Infra has not received the road project completion certificate
from the independent consultant. The company will receive annuity
payments from National Highway Authority of India (NHAI) only
after submitting the completion certificate. Due to insufficient
accruals, the company has not repaid the term loan installments to
the banks.
About OB Infrastructure
OBIL is a special-purpose vehicle (SPV) promoted by NCC Ltd (NCC;
rated 'AA-/Stable/P1+' by CRISIL) and KMC Constructions, which
hold stakes of 64% and 36%, respectively, in the SPV. OBIL was
incorporated in 2006 to undertake a road project on the Orai-
Bhognipur stretch of National Highway (NH)-25, and the Bhognipur-
Barah stretch of NH-2.
The project involves strengthening and widening 62.8 kilometre of
the existing two-lane carriageway into a four-lane dual-
carriageway facility, for a total cost of INR5.85 billion. This
stretch forms a part of the NHAI's east-west corridor project, and
is located between the major cities of Kanpur and Jhansi (both in
Uttar Pradesh). OBIL signed a concession agreement with NHAI in
April 2006 for a period of 17.5 years, undertaking the
construction, operation, and maintenance of the project on an
annuity basis. While NHAI has agreed to pay OB Infra a semi-annual
annuity amount over a period of 15 years, the same has not been
paid by NHAI pending submission of project completion certificate
by OB Infra.
PARSEWAR SEEDS: CRISIL Places 'B' Rating on INR70MM Pledge Loan
---------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to Parsewar Seeds &
Fertilizers' bank facilities.
Facilities Ratings
---------- -------
Rs.28.5 Million Cash Credit B/Stable (Assigned)
Rs.70.0 Million Pledge Loan B/Stable (Assigned)
Rs.4.0 Million Bank Guarantee P4 (Assigned)
The ratings reflect Parsewar's weak financial risk profile, marked
by high gearing and average debt protection metrics, and modest
scale of operations. These rating weaknesses are partially offset
by Parsewar's established relationship with principals, and the
firm's wide customer network.
Outlook: Stable
CRISIL believes that Parsewar will continue to benefit from its
stable relationships with suppliers over the medium term. The
outlook may be revised to 'Positive' if the firm registers
significant revenue growth, while improving profitability, and if
its financial risk profile improves significantly, led by capital
infusion. Conversely, the outlook may be revised to 'Negative' if
Parsewar's operating profitability declines materially, or if it
contracts larger-than-expected debt to fund its working capital
requirements, thereby adversely affecting its financial risk
profile.
About Parsewar Seeds
Parsewar, a partnership firm set up by Mr. Shashikant Puramwar in
1992, trades in fertilisers, seeds and pesticides. The firm also
undertakes handling and storage of fertilisers as it warehouses
and transports the materials. The firm has the dealership of nine
well-known entities such as Rashtriya Chemicals and Fertilizers
Ltd, Indian Potash Ltd, Hindalco Industries Ltd, and Coromandel
Fertilizers Ltd. Moreover, the firm has the dealership of seeds
from Pioneer Hi-Bred International Inc and Monsanto India Ltd in
Sangli (Maharashtra).
Parsewar reported a profit after tax (PAT) of INR2 million on net
sales of INR567 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR2 million on net sales
of INR638 million for 2008-09.
R.S. VANIJYA: Fitch Affirms 'B-(ind)' Rating on INR80MM Loan
------------------------------------------------------------
Fitch Ratings has affirmed India-based R.S. Vanijya Private
Limited's National Long-Term Rating at 'B-(ind)' with a Stable
Outlook. The agency has also affirmed RSVPL's bank loans:
-- INR80 million cash credit limits: 'B-(ind)';
-- INR120 million fund-based limits: 'F4(ind)'; and
-- INR60 million non-fund based limits: 'F4(ind)'.
The affirmations continue to reflect RSVPL's weak financial
profile, characterised by its low EBITDA margins (financial year
ended March 31, 2010 (FY10): 0.9%, FY11 (provisional): 1.1%) and
high net adjusted leverage (net adjusted debt/EBITDA for FY10:
26.5x, FY11 (provisional):12.5x). The ratings are further
constrained by RSVPL's relatively small scale of business in
India's fragmented plastic industry, resulting in intense
competition and limited bargaining power.
The ratings however draw some benefit from the support extended by
group companies and the past experience of RSVPL's promoters in
the trading and manufacturing of plastic, textiles and jewellery
items. The management is planning to consolidate the Group as per
companies operating under similar business verticals. This will
improve the consolidated entity's operational efficiency and
enhance its financial performance.
Positive ratings guidelines include RSVPL's net financial leverage
of below 10x, with sustained EBITDA margins of 2% and higher
revenues. Negative rating guidelines include a deterioration in
its EBITDA interest coverage to below 1x.
Located in Kolkata, RSVPL is owned by Mr. Aman Saraogi. It is
engaged in the manufacture of plastic granules, sheets and films
and trading of jewellery, fabric and plastic products. As per its
provisional figures for FY11, it had net sales of INR3,473.7
million (FY10: INR2,653.7 million), of which around 40% were
derived from trading activities over FY10-FY11.
RANGER COTTON: CRISIL Assigns 'B' Rating to INR20MM Demand Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Ranger Cotton Mills
(India) Pvt Ltd continue to reflect Ranger Cotton's below-average
financial risk profile, marked by a high gearing and a small net
worth, susceptibility to volatility in cotton prices, exposure to
intense competition in the textiles industry, limited track
record, and small scale of operations. These rating weaknesses
are partially offset by the experience of Ranger Cotton's
promoters in the textile business.
Facilities Ratings
---------- -------
INR20 Million Working Capital B/Stable (Assigned)
Demand Loan
INR135 Million Cash Credit B/Stable (Reaffirmed)
INR15.5 Million Proposed Cash B/Stable (Assigned)
Credit Limit
INR194.8 Million Long-Term Loan B/Stable (Reaffirmed)
INR10 Million Letter of Credit P4 (Reaffirmed)
INR28 Million Bank Guarantee P4 (Reaffirmed)
Outlook: Stable
CRISIL believes that Ranger Cotton's credit risk profile will
remain stable over the medium term, backed by its improved
revenues and its increased capacity utilization. The outlook may
be revised to 'Positive' if Ranger Cotton generates higher-than-
expected profitability combined with improvement in its capital
structure. Conversely, the outlook may be revised to 'Negative' if
Ranger Cotton underutilizes its capacities, thereby reducing its
cash accruals or undertakes a large, debt-funded capex programme.
Update
For 2010-11 (refers to financial year, April 1 to March 31),
Ranger Cotton reported an 80% growth in operating income over
2009-10, largely because of improved realizations. It also
reported an operating margin of 15.8%, which was broadly in line
with CRISIL's expectations. During 2010-11, Ranger Cotton expended
a capital (largely debt-funded) of around 173.3 million towards
addition of 7200 spindles. The company's gearing was high at
around 2.40 times as on March 31, 2011 and is expected to improve
gradually with no capital expenditure (capex) plans for the medium
term. Ranger Cotton's liquidity remains weak with its bank limits
utilized at an average of 94%.
Ranger Cotton reported a provisional profit after tax (PAT) of
INR19.4 million on net sales of INR640.5 million for 2010-11,
against a PAT of INR5.9 million on net sales of INR355.2 million
for 2009-10.
About Ranger Cotton
Set up in 2004 by Mr. K Arumugam, Ranger Cotton manufactures
cotton yarn in counts ranging from 20s to 40s. Its facilities at
Gobichettipalayam (Tamil Nadu) have a total of 21,600 spindles and
30 knitting machines as on 2010-11. Around 82% of its sales in
2010-11 were derived from sale of cotton yarn and the rest from
sale of grey knitted fabric.
RESTORE MACHINE: Fitch Rates INR40MM Cash Credit at 'B-(ind)'
-------------------------------------------------------------
Fitch Ratings has assigned India-based Restore Machines India
Private Limited a National Long-Term Rating of 'B-(ind)' with a
Stable Outlook. The agency has also assigned these ratings to
RMIPL's bank loans:
-- INR40 million cash credit limits: 'B-(ind)';
-- INR50 million PC/FUBD limits: 'F4(ind)'; and
-- INR10 million non-fund based limits: 'F4(ind)'.
The ratings reflect the trading nature of RMIPL's business and its
weak financial metrics, which is reflected in its low EBITDA
margins (financial year ended March 31, 2010 (FY10): 1.1%) and
high net adjusted leverage (net adjusted debt/EBITDA for FY10:
35.2x). As per the provisional results for FY11, the company's
performance is, however, expected to improve mainly due to
increased proportion of jewellery exports which accounted for
around 15% of its total sales (FY10: 5%).
The ratings draw some strength from the support extended by group
companies and the past experience of RMIPL's promoters in the
trading of plastic, textiles and jewellery items. The management
is planning to consolidate the Sonthalia Group as per companies
operating under similar business verticals. This will improve the
operational efficiency of the consolidated entity and enhance its
financial performance.
Positive rating guidelines include an improvement in RMIPL's net
adjusted leverage to below 10x along with EBITDA margins at above
3%. Negative rating guidelines include deterioration in the
company's EBITDA interest coverage to below 1x.
RMIPL is a part of the Kolkata-based Sonthalia group and is
engaged in the trading of jewellery, fabric and plastic products.
It reported net revenue of INR761.7m in FY10, which increased to
INR788.4m according to the provisional results for FY11.
S R ENTERPRISE: Fitch Affirms 'B-(ind)' Rating on INR160MM Limits
-----------------------------------------------------------------
Fitch Ratings has affirmed India-based S R Enterprise's National
Long-Term Rating at 'B-(ind)' with a Stable Outlook. The agency
has also affirmed SRE's bank loans:
-- INR160 million* fund-based limits (reduced from INR165m):
'B-(ind)'/'F4(ind)'; and
-- INR30 million* non-fund based limits: 'F4(ind)'.
* Total limits to not exceed INR160 million.
The affirmations continue to reflect SRE's weak financial profile
as reflected in its low EBITDA margins (FY10 (financial year ended
March 31, 2010): 2%, FY11 (provisional): 1.8%) and high net
adjusted leverage (FY10: 27.4x, FY11(provisional): 19.9x). The
ratings are also constrained by the proprietorship nature of SRE's
business and the fact that its revenue is completely derived from
trading activities. Fitch notes that the company's capex plan for
setting up manufacturing facilities for plastic granules, garbage
bag and lay flat tubes, which was scheduled to commence in FY11,
has been delayed and the commercial production is expected to
start by September 2011.
The ratings however draw some benefit from the support extended by
group companies and promoters the past experience of SRE's
promoters in the trading of plastic, textiles and jewellery items.
The management is planning to consolidate the Group as per
companies operating under similar business verticals. This will
improve the consolidated entity's operational efficiency and
enhance its financial performance.
Positive ratings guidelines include an improvement in SRE's net
financial leverage to below 10x, along with EBIDTA interest cover
of above 3.5x. Negative rating guidelines include the company's
net debt/EBIDTA exceeding 25x, along with EBIDTA interest cover of
below 1x.
Located in Kolkata, SRE is owned by Mr. Aman Saraogi, and is
engaged in the trading of jewellery, fabric and plastic products.
In FY11, it had net revenue of INR1,882.8 million (FY10: INR1458.4
million).
SARASWATI ENTERPRISE: CRISIL Rates INR170 Million LOC at 'P4'
-------------------------------------------------------------
CRISIL has assigned its 'P4' rating to the letter of credit
facility of Saraswati Enterprise.
Facilities Ratings
---------- -------
INR170 Million Letter of Credit P4 (Assigned)
The rating reflects SE's weak financial risk profile, marked by
small net worth and weak debt protection metrics, and
susceptibility to adverse regulatory changes, and volatility in
steel scrap prices. These rating weaknesses are partially offset
by the healthy growth prospects for the ship-breaking industry,
revenue visibility in the ongoing year, and promoters' established
position in the steel rolling sector.
Set up as a partnership firm in 2009 by partners Mr. Rameshbhai
Gulwani and his younger brother, Mr. Maheshbhai Gulwani, SE
undertakes ship-dismantling projects. It owns an 80 x 180 meter
ship-breaking yard in Jamnagar (Gujarat). SE leased this yard from
Gujarat Maritime Board in 2009-10 (refers to financial year,
April 1 to March 31) for an annual fee of INR240,000.
SE reported a profit after tax (PAT) of INR2 million on net sales
of INR131 million for 2009-10, its first year of operations.
SHREEJI JEWELLERY: CRISIL Assigns 'D' Rating to INR30MM LT Loan
---------------------------------------------------------------
CRISIL has re-assigned its 'D' rating on the packing credit and
post shipment credit facilities of Shreeji Jewellery Ltd; these
facilities were earlier rated 'P5' in the short-term scale by
CRISIL. CRISIL has reaffirming the ratings on the letter of credit
and bank guarantee facilities at 'P5'.
Facilities Ratings
---------- -------
INR30.0 Million Proposed Long-Term D (Assigned)
Bank Loan Facility
INR130.0 Million Packing Credit D (Reassigned)
INR90.0 Million Post Shipment Credit D (Reassigned)
The ratings continue to reflect SJL's weak financial risk profile
marked by delays in payment of term loan installments, high
gearing and weak debt protection metrics. The rating also factors
in SJL's high geographic and customer concentration in revenues
and working-capital intensive nature of its operations. The group,
nevertheless, benefits from its established market position in the
studded jewellery business.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of Shreeji Jewellery Design Limited and
Shreeji Jewellery Ltd, together referred to as the Shreeji group,
for the periods prior to 2009-10 (refers to financial year,
April 1 to March 31). This is because both the companies were
under a common management and promoters, and shared significant
operational and business linkages. SJDL has merged with SJL
effective April 1, 2009.
About the Group
The Shreeji group, promoted by Mr. Pravin Shah, manufactures and
exports diamond-studded gold, silver, and platinum jewellery. SJL,
incorporated in 1996, is a 100% export-oriented unit, with
manufacturing facilities in SEEPZ, Mumbai. SJDL was formed in the
year 2002 as an export oriented unit. SJDL has merged with SJL
w.e.f April 1, 2009.
For 2010-11, SJL reported a provisional net profit of
INR0.7 million on net sales of INR1.48 billion, as against a net
loss of INR225 million on net sales of INR1.7 billion in 2009-
10(refers to financial year, April 1 to June 30).
SMS SHIVNATH: CRISIL Reaffirms 'B-' Rating on INR2-Bil. LT Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'B-/Stable' rating on the bank facility
of SMS Shivnath Infrastructure Ltd.
Facilities Ratings
---------- -------
INR2 Billion Long-Term Loan B-/Stable (Reaffirmed)
The rating factors in SMSSIL's weak financial risk profile, driven
by support extended to group companies and large ongoing debt-
funded capital expenditure (capex) to add two lanes to the
existing two-lane Durg Bypass road (Chhattisgarh). These rating
weaknesses are partially offset by the benefits that SMSSIL
derives from stable toll revenues, and from its proven track
record in traffic management.
Outlook: Stable
CRISIL believes that SMSSIL will maintain stable revenues over the
medium term, given the steady and increasing traffic on the Durg
Bypass road. The outlook may be revised to 'Positive' if there is
significant increase in traffic volumes or if the increase in
gearing is lower than CRISIL's expectation. Conversely, the
outlook may be revised to 'Negative' if a substantial decline in
SMSSIL's net cash accruals impacts its debt servicing ability, or
if its financial risk profile deteriorates considerably.
Update
SMSSIL's revenue profile continues to be supported by healthy
traffic on the toll road as it is part of the National Highway 6
(NH 6), which is connected on the western end with the Gujarat
port and on the eastern end with Kolkata port. The company's
operating income of INR268 million and operating margin of over
90% in 2010-11 (refers to financial year, April 1 to March 31)
were in line with CRISIL's projections. SMSSIL's financial risk
profile is, however, constrained on account of high debt levels.
The company fully availed a term loan of INR1.4 billion and, in
line with expectations, utilized it for one-time dividend payment
and loans and advances to group companies. Furthermore, the
company is in the process of widening the toll road to four lanes,
from two; this project will be largely debt funded. Therefore,
CRISIL believes that SMSSIL's financial risk profile will remain
constrained on account of substantial payout to shareholders and
the large, debt-funded project it is undertaking.
SMSSIL's dispute on payment from National Highways Authority of
India (NHAI) continues to be unresolved and the company has not
started the repayment of the unsecured loan from NHAI or made any
provision for the interest cost.
SMSSIL is expected to report a profit after tax (PAT) of
INR75 million on net revenues of INR268 million for 2010-11,
against a PAT of INR137 million on net revenues of INR252 million
for 2009-10.
About SMS Shivnath
SMSSIL was set up as a special-purpose vehicle in 1997 to complete
the build-operate-transfer road project, Durg Bypass, with SMS
Infrastructure Ltd (SMS Infra) as project sponsor. Initially,
SMSSIL was wholly owned by SMS Infra, which is, in turn, owned by
the Sancheti family; however, in September 2007, Infrastructure
Development Finance Company Ltd acquired a 48.4% stake in SMSSIL
for an equity consideration of INR1.21 billion. In 2010, SMS Infra
sold 25% of its shares in SMSSIL to group company SMS Tolls and
Developers Ltd.
The Durg Bypass, an 18.4-kilometre-long, two-lane bypass around
Durg town, is on NH 6 connecting Surat (Gujarat) to Kolkata.
SMSSIL has been awarded a concession period of 32.5 years
(inclusive of a construction period of 2.5 years) beginning
September 1998.
SRI JAGANNATHA: CRISIL Assigns 'BB' Rating to INR67.8MM LT Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Sri Jagannatha Spinners.
Facilities Ratings
---------- -------
INR67.8 Million Long-Term Loan BB/Stable (Assigned)
INR60 Million Cash Credit BB/Stable (Assigned)
INR0.7 Million Proposed Term Loan BB/Stable (Assigned)
INR50 Million Letter of Credit P4+ (Assigned)
INR2 Million Bank Guarantee P4+ (Assigned)
The ratings reflect SJS' small scale of operations and exposure to
intense competition in textile industry, and its working-capital-
intensive operations. These weaknesses are partially offset by
SJS' above-average financial risk profile, marked by healthy debt
protection metrics and the extensive industry experience of its
promoters.
Outlook: Stable
CRISIL believes that Sri Jagannatha Spinners will continue to
benefit over the medium term from its promoter's healthy track
record in the cotton grey fabric and yarn business. The outlook
may be revised to 'Positive' if the firm's scale of operations and
capital structure improve considerably. Conversely, the outlook
may be revised to 'Negative' if the firm's financial risk profile
deteriorates because of less-than-expected operating margin and
revenues or large, debt-funded capital expenditure (capex)
programme.
About Sri Jagannatha
Incorporated in 1985 as a partnership firm and based in Coimbatore
(Tamil Nadu), SJS sells grey cotton fabric and cotton yarn,
primarily in the domestic market. Based in Tirupur, the firm has
an installed capacity of 17472 spindles. Its day-to-day affairs
are managed by its managing partners, Mr. J. Vijay Kumar, Mr. J.
Ashok Kumar and Mr. J. Chandrashekhar, all of whom have around
twenty years' experience in the textile industry. The firm derives
70 to 75% of its revenues from the sale of grey fabric and 20 to
25% of its revenues from the sale of cotton yarn. The firm has
wind mills power generation capacity of around 1.8 megawatts as on
March 31, 2011.
SJS's profit after tax (PAT) and net sales for 2010-11 (refers to
financial year, April 1 to March 31) are estimated at INR19
million and INR269 million respectively. SJS reported a PAT of
INR17 million on net sales of INR180 million for 2009-10, as
against a PAT of INR8 million on net sales of INR142 million for
2008-09.
SUKHSAGAR INFOTECH: Fitch Affirms 'B-(ind)' INR150MM Limits Rating
------------------------------------------------------------------
Fitch Ratings has affirmed India-based Sukhsagar Infotech Pvt.
Ltd.'s National Long-Term Rating at 'B-(ind)' with a Stable
Outlook. The agency has also affirmed SIPL's bank loans:
-- INR150 million fund-based limits: 'B-(ind)'; and
-- INR26.5 million non-fund based limits: 'F4(ind)'.
The affirmations continue to reflect the trading nature of SIPL's
business and its weak financial metrics, which is reflected in its
low EBITDA margins (financial year ended March 31, 2010 (FY10):
2.1%), high net adjusted leverage (net adjusted debt/ EBITDA for
FY10: 11.4x) and low EBITDA interest coverage (FY10: 1x). However,
its provisional results for FY11 indicate some improvement in
SIPL's financial performance with EBITDA margins of 2.2% and net
adjusted leverage of around 7.4x, though the EBITDA interest
coverage remains at around 1x.
The ratings draw some benefit from the support extended by group
companies and the past experience of its promoters in the trading
of plastic, textiles and jewellery items. The management is
planning to consolidate the Sonthalia Group as per companies
operating under similar business verticals. This will improve the
consolidated entity's operational efficiency and enhance its
financial performance.
Positive ratings guidelines include a substantial improvement in
SIPL's EBIDTA margins, along with a reduction in its net financial
leverage to below 6x and interest cover of above 2x on a sustained
basis. Negative rating guidelines include a deterioration in the
company's net financial leverage to above 10x and interest cover
to below 1x.
SIPL is a part of the Kolkata-based Sonthalia group and is engaged
in the trading of jewellery, fabric and plastic products. In FY11,
it had net revenue of INR1,480 million based on provisional
results (FY10: INR902.6 million).
SYNERGY UNITED: CRISIL Reaffirms 'P4+' Rating on INR40MM LOC
------------------------------------------------------------
CRISIL has assigned its 'P4+' rating to the proposed short-term
bank facility of Synergy United Pharmachem Pvt Ltd, while
reaffirming the rating on the other short-term facilities at
'P4+'.
Facilities Ratings
---------- -------
INR40.0 Million Letter of Credit P4+ (Reaffirmed)
INR35.0 Million Packing Credit P4+ (Reaffirmed)
INR15.0 Million Proposed Short- P4+ (Assigned)
Term Bank Loan Facility
The rating reflects Synergy's small net worth, small scale of
operations in the competitive pharmaceutical intermediates
manufacturing industry, large working capital requirements, and
susceptibility to volatility in foreign exchange rates. These
rating weaknesses are partially offset by Synergy's above-average
financial risk profile, marked by moderate debt protection
metrics, and promoters' experience in the pharmaceutical industry.
Update
Synergy's revenues are estimated to have declined by around 20%
(year-on-year) to around INR190 million in 2010-11 (refers to
financial year, April 1 to March 31); revenues suffered because of
decline in revenues from the company's operations in Iran
(contributed 35 to 40% of total sales in 2009-10) as a result of
sanctions against Iran. Operating margin is estimated to have
marginally increased to around 9.2% in 2010-11 from 8.0% in 2009-
10, with the company getting better pricing from its suppliers,
supported by its longstanding relationships with them. The company
continues to manage its working capital cycle effectively, which
is reflected in its low bank limit utilization of around 60% on
average during 2010-11 and gross current asset (GCA) level of less
than 65 days as on March 31, 2011. The company had no term loan as
on March 31, 2011. However, the small net worth, estimated at
around INR30 million as on March 31, 2011, continues to constrain
the company's financial flexibility.
Synergy reported, on provisional basis, a profit after tax (PAT)
of INR7 million on net sales of INR190 million for 2010-11; it
reported a PAT of INR9 million on net sales of INR228 million for
2009-10.
About Synergy United
Synergy was incorporated in 2007 and promoted by Mr. Satish
Prabhakar Nachane, Mr. Ramesh Ekanath Jadhav, Mr. Sabu Daniel,
Mr. Mehul S Nachane (son of Mr. Satish Nachane), and Mrs. Sadhana
Nachane (wife of Mr. Satish Nachane). Synergy is in the business
of merchant exporting of, and trading in, pharmaceutical
intermediates manufactured in India. The company is also in the
indenting business, wherein it markets the products of Chinese
pharmaceutical manufacturers in India.
VM COAL: CRISIL Assigns 'BB' Rating to INR45MM Letter of Credit
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of VM Coal Logix Pvt Ltd.
Facilities Ratings
---------- -------
INR45 Million Cash Credit BB/Stable (Assigned)
INR37 Million Letter of Credit P4+ (Assigned)
The ratings reflect VM Coal's moderate financial risk profile,
marked by small net worth and high total outside liabilities to
total net worth ratio, and its limited track record and small
scale of operations. These weaknesses are partially offset by VM
Coal's diversified customer base, fixed supply agreements, and the
healthy demand prospects for the imported coal trading business.
Outlook: Stable
CRISIL believes that VM Coal will register moderate sales turnover
over the medium term, on the back on strong demand for imported
coal in India. The outlook may be revised to 'Positive' in case
the company achieves strong growth in revenues, through the
addition of new customers, along with stable profitability,
resulting in more-than-expected cash flows. Conversely, the
outlook may be revised to 'Negative' if the company achieves less-
than-expected revenues and margins or undertakes a large, debt-
funded capital expenditure programme, resulting in deterioration
in its financial risk profile.
About VM Coal
VM Coal commenced commercial operations in September 2009; it
trades in imported steam coal. The company is promoted by Mr.
Vidyasagar K V R and his brother, Mr. K Mohan Kumar, who have
experience in the family business. VM Coal primarily deals in
Indonesian and South African steaming coal, which it procures from
Adani Enterprises Ltd and Bhatia International.
VM Coal, posted, on a provisional basis, a profit after tax (PAT)
of INR14.0 million on net sales of INR659.0 million for 2010-11
(refers to financial year, April 1 to March 31) as against PAT of
INR5.0 million on net sales of INR293.6 million for 2009-10.
=========
J A P A N
=========
SOFTBANK CORP.: Moody's Reviews 'Ba2' Issuer Rating for Upgrade
---------------------------------------------------------------
Moody's Japan K.K. has placed its Ba2 issuer rating on SOFTBANK
CORP under review for possible upgrade. This rating action was
triggered by its announcement that it had reached agreement with
its banks to obtain JPY550 billion in funds needed to refinance
the whole business securitization (WBS) related loan of its 100%
subsidiary, SoftBank Mobile Corp.
Moody's also considers that SOFTBANK CORP's operating performance
and earnings have improved and continue to improve.
The refinancing, once completed, would be a positive credit event
for SOFTBANK CORP's credit rating.
Under the conditions of the WBS scheme, SBM's cash flow could only
be used for the repayment of its debt and its mobile business
could not be deployed for the group overall.
But, after the new refinancing agreement is fully implemented,
this restriction would disappear, allowing SOFTBANK CORP to access
the cash flow from its mobile business and to use it for the whole
group. SBM accounted for 64% of the group's consolidated operating
profits in FYE 3/2011.
In addition, the borrower of the new loan for the refinancing will
be SOFTBANK CORP, not SBM. Moody's assumes that this situation
will lessen concerns over structural subordination, and which has
to be considered with any assessments of SOFTBANK CORP's new
loans.
In 2006, SOFTBANK CORP had raised long-term funds of about JPY1.37
trillion in the WBS-related loan to refinance a bridge loan of
around JPY1.17 trillion. The latter was used to purchase Vodafone
K.K. which is now SBM. The outstanding of portion of this long-
term debt was about JPY 626.9 billion as of end-April 2011.
Since SOFTBANK CORP purchased SBM, its operating performance and
earnings have improved significantly with rapid rises in
subscribers and data revenue.
As a base case scenario, after the refinancing, Moody's expects
SOFTBANK CORP's fundamentals will improve at a moderate speed,
although the high level of capital expenditure required to
strengthen is network will constrain free cash flow. And the
latter's pace of improvement -- as seen in the last few years --
will slow.
Assuming that SOFTBANK CORP maintains its current fundamental
strength, its credit profile will keep improving.
Moody's review will focus on structural and legal subordination
issues for Soft bank. Moody's will also consider how the company
improves its credit profile over the next few years.
The review will be concluded by November 2011, when the
refinancing is completed, according to the company's plan.
Please see ratings tab on the issuer/entity page on the Moody's
website for the last rating action and the rating history.
The principal methodology used in this rating this issuer was
""Global Telecom Industry", published on February 15, 2011, and
available on www.moodys.co.jp.
SOFTBANK CORP, headquartered in Tokyo, is a holding company that
owns leading global providers of various services, including
broadband, fixed-line and mobile telecommunications, software
distribution, networking and publishing.
=========
K O R E A
=========
* SOUTH KOREA: To Examine Finances of 85 Savings Banks
------------------------------------------------------
Agence France-Presse reports that South Korea's financial
regulator said on Monday it would start assessing the finances of
savings banks to see whether they are healthy enough for
government support or should be suspended.
AFP relates that the Financial Services Commission (FSC) said the
investigation into 85 out of the 93 savings banks would start this
month and run through August.
Authorities have suspended eight savings banks this year for
inadequate liquidity after soured real estate project financing
swelled the sector's bad debt, AFP reports.
The debt, according to AFP, is too small to threaten the overall
banking and financial sector.
But the suspensions have fuelled anger among small depositors
before parliamentary and presidential elections next year,
especially after claims that wealthy depositors were tipped off in
advance about the action.
The FSC said its probe would focus on capital adequacy ratios
stipulated by the Bank for International Settlements standards,
AFP adds.
===============
M A L A Y S I A
===============
EON BANK: Moody's Withdraws Deposit & Financial Strength Ratings
----------------------------------------------------------------
Moody's Investors Service has withdrawn the A3/Prime-1/C- bank
deposit and bank financial strength ratings of Eon Bank Berhad.
This follows the completion of the legal transfer of assets and
liabilities of EBB to Hong Leong Bank (HLB; A3/P-1 stable).
Ratings Rationale
The assets and liabilities of EBB were transferred to HLB on 1
July 2011. EBB is now a dormant company.
These ratings were withdrawn:
EBB:
Bank financial strength rating: C-
Long-term bank deposit rating: A3
Short-term bank deposit rating: Prime-1
Headquartered in Kuala Lumpur, EBB reported consolidated assets
MYR53.3 billion (approximately US$17.3 billion) as at Dec. 31,
2010.
====================
N E W Z E A L A N D
====================
ALLIED FARMERS: To Divest Rural Merchandising Business
------------------------------------------------------
Allied Farmers Ltd said that it has completed a review of the
potential future options for its Rural Merchandising business.
"After taking into consideration both recent and forecast poor
performance of Rural Merchandising, along with the challenge of
achieving an acceptable return on investment in the current highly
competitive farm merchandising environment, the decision has been
made to divest the rural retail stores by either closure or sale,"
Allied Farmers in a statement to the NZX.
Allied Farmers said the divestment of the Merchandise division
will increase overall profitability and enable the company to
focus on and invest in growing the profitable Rural Livestock
business.
Mr. Steve Morrison, ALF's Rural CEO said "I am mindful that the
Livestock business focus brings Allied Farmers back to its very
earliest roots, and customers can be assured that the company will
continue to bring the very real commitment to serving clients, and
to ensuring the competitive offering of these services, that was
at the core of why Allied Farmers, as its predecessor Farmers Co-
op, was originally formed. I am confident that by focusing our
attention and resources on the profitable Livestock business, our
prospects will be much stronger and this will benefit both our
customers and shareholders."
Mr. Morrison said that "the decision to divest Rural Merchandising
has been made after consultation with staff and we have started
negotiations with potential buyers. He thanked the loyalty of
staff and customers over the past months of difficult trading
times for our merchandise stores."
The divestment of the Merchandise business will enable the Group
to accelerate its debt retirement programme. For the year to
June 30, 2011, the Group has achieved a reduction of total group
debt of over $50 million.
Allied Farmers operate 14 rural supplies stores trading as
Taranaki Farmers and King Country Farmers.
About Allied Farmers
Based in New Zealand, Allied Farmers Limited (NZE:ALF) --
http://www.alliedfarmers.co.nz/-- is engaged in livestock, real
estate, finance, wool brokering and manufacturing (meat and
timber). Rural Services comprise livestock, merchandise and real
estate operations. The Company's Rural Services activities are
carried out in Taranaki, Waikato, King Country and Manawatu. Its
Financial Services activities are carried out by Allied Nationwide
Finance Limited in Auckland, Wellington and Christchurch. Timber
processing comprises the Company's discontinued sawmilling
operations. On June 29, 2007, Allied Nationwide Finance Limited,
Nationwide Finance Limited and Allied Prime Finance Limited were
amalgamated, with Nationwide Finance Limited being the continuing
entity. Nationwide Finance Limited subsequently changed its name
to Allied Nationwide Finance Limited.
As reported in the Troubled Company Reporter-Asia Pacific on
June 13, 2011, BusinessDesk said Allied Farmers Limited has gained
a nine-month reprieve on repaying a NZ$7.5 million loan to the
receivers of its failed Allied Nationwide Finance unit that was
due on July 1. Allied Farmers entered into two loan agreements
with Allied Nationwide last year, converting its existing debt
factoring, credit enhancement and related party loan arrangements.
All of Allied Farmers' assets are secured by a general deed
covering the loans.
AMI INSURANCE: Gets NZ$1.3-Bil. Re-insurance For Catastrophe Cover
------------------------------------------------------------------
Sam Thompson at Newstalk ZB reports that AMI Insurance said it has
managed to more than double the company's re-insurance for
catastrophe cover, including earthquakes.
Newstalk ZB relates that Chief Executive John Balmforth said the
re-insurance package was negotiated with a consortium of
international re-insurance companies. He said they will have
cover for NZ$1.3 billion starting July 1.
"It's for one event and that's reinstated automatically for a
second event so we could cover two catastrophes, which we clearly
hope doesn't happen to the people of New Zealand, up to $1.3
billion each," Mr. Balmforth told Newstalk ZB.
Mr. Balmforth said insurance premiums will go up.
"House insurance would increase effective from 1 July by
approximately 20% on average across the country and that reflects
the fact that we have incurred additional cost in re-insurance and
regrettably it needs to be passed on to our customers,"
Mr. Balmforth told Newstalk ZB.
Mr. Balmforth said it is now more difficult and more expensive for
New Zealand companies to purchase re-insurance, Newstalk ZB adds.
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.
AMI has since been seeking alternative sources of capital to
replace the government backing, BusinessDay.co.nz says.
AMI Insurance -- http://www.ami.co.nz/-- is the largest general
insurer in Christchurch, New Zealand.
AORANGI SECURITIES: Statutory Managers Won't Pay Legal Bills
------------------------------------------------------------
The National Business Review reports that statutory managers of
Aorangi Securities Ltd and Hubbard Management Funds said they are
following legal directions from the courts in refusing to pay the
legal costs of Timaru financier Allan Hubbard, and his wife, Jean.
"There has been some confusion over the payment of Mr. and Mrs.
Hubbard's legal fees," managers Richard Simpson, Trevor Thornton
and Graeme McGlinn of Grant Thornton New Zealand said in a
statement Monday, according to NBR.
"We approached the courts for guidance on whether it was
appropriate for us to pay the legal costs, and if so, what money
should be used. The courts came back saying that costs should be
paid, but it was neither the liability of the statutory managers
or the Government, and that it should come from Mr. and Mrs.
Hubbard's personal assets. We are following the court's
direction," the managers said.
The statutory managers said in their seventh report to investors
that they continued to finalize issues and stabilize the complex
farming interests associated with the Hubbards and that they had
restructured and significantly improved the financial reporting
and governance of a number of associated farming interests,
according to NBR.
NBR notes that Allan Hubbard's first court appearance on 50 fraud
charges has been adjourned until August 26 for initial disclosure
and witness statements.
NBR, citing The Timaru Herald, says documents revealing details
about the case were released July 1, including information that he
allegedly deceived investors into thinking they had seven-figure
sums invested in his company Aorangi Securities.
One of the charges, according to NBR, said a statement showing an
investment of NZ$5,821,44 was given to an investor "when in fact
no such investment existed." Another similar charge related to an
investment of NZ$1.45 million which the Serious Fraud Office also
said did not exist, NBR says.
About Aorangi Securities
Aorangi Securities Ltd was incorporated in 1974 and is solely
controlled by the Hubbards.
On June 20, 2010, Aorangi Securities and seven charitable trusts
were placed into statutory management, and Allan and Jean Hubbard
were also placed into statutory management as "associated persons"
of those entities. The seven charitable trusts included in the
statutory management are Te Tua, Otipua, Oxford, Regent, Morgan,
Benmore and Wai-iti. Trevor Thornton and Richard Simpson of Grant
Thornton were appointed as statutory managers.
The Temple Bar Family Trust and Barns Charitable Trust were also
put into statutory management in September 2010 on recommendation
from the Securities Commission. Hubbard Churcher Trust Management
and Forresters Nominees Company were also added to the list of
businesses under management by Trevor Thorton, Richard Simpson and
Graeme McGlinn on September 20, 2010.
The Troubled Company Reporter-Asia Pacific reported on May 12,
2011, that the Hubbards filed judicial review proceedings at the
Timaru High Court challenging the decision to place them into
statutory management and seeking orders that they be removed from
statutory management.
On June 20, 2011, the Serious Fraud Office laid 50 charges under
Crimes Act against Allan Hubbard in relation to its investigation
into the affairs of Aorangi Securities Ltd; Hubbard Management
Funds; and ASL directors Allan and Margaret (Jean) Hubbard.
HAMILTON AMATEUR: In Liquidation; Hamilton City Council Takes Over
------------------------------------------------------------------
Voxy.co.nz reports that Hamilton City Council will assume
operational responsibilities for the Hamilton Municipal Pools,
following the voluntary liquidation of Hamilton Amateur Swimming
Club.
The Council-owned pools on Victoria Street have been operated by
the club for more than a decade, under a Service Level Agreement.
Voxy.co.nz relates that council's Leisure Facilities Manager
Jason Rogers said Council staff had been working closely with club
officials for several months in an effort to give the club every
opportunity to continue using the facility. However, with a
dwindling membership and internal issues affecting its finances,
the club has opted for voluntary liquidation, as of July 3, 2011.
According to the report, Mr. Rogers said that with the liquidation
of the club, Council staff's focus had shifted to keeping the
facility open to the public for continued use.
SOUTH CANTERBURY: Southbury Reports Show NZ$187 Million Hole
------------------------------------------------------------
The National Business Review reports that receivers' reports for
Allan Hubbard's Southbury Group and Southbury Corporation indicate
taxpayers are staring at a near-total writedown of the NZ$187
million advanced by South Canterbury Finance to the companies.
Southbury Corporation is an investment vehicle holding 100% of the
shares in South Canterbury Finance. Southbury Group is in turn
the 100% owner of Southbury Corporation.
The National Business Review notes that Kerryn Downey and William
Black were appointed to the two entities on November 3 following
defaults by the two companies on repayment of substantial loans
from South Canterbury: Southbury Group owed NZ$84.7 million and
Southbury Corporation NZ$103.9 million.
Southbury Corporation's major assets are a loan to its parent, and
its 100% shareholding of South Canterbury, The National Business
Review says.
The report recalls that South Canterbury collapsed in August,
triggering a NZ$1.8 billion taxpayer payout under the terms of the
Crown Retail Deposits Guarantee Scheme.
Receivers note an unaudited schedule of Southbury Group was
provided by Mr. Hubbard.
The schedule lists substantial advances to two associated
companies in receivership: NZ$160.6 million worth of shares in
Southbury Corporation, and NZ$20.9 million in capital
contributions to South Canterbury, according to The National
Business Review.
The report discloses that the sole other assets listed are a
NZ$5.5 million stake in Biogene Holdings, and NZ$5.1 million of
"sundry shares".
Biogene Holdings is part of the Biocorp Group, itself in
receivership woes.
The book value of these assets, of NZ$198.2 million, faces near-
total wipeout, The National Business Review relays.
Total liabilities for Southbury Group, including the loan from
South Canterbury and a large loan from shareholders, total NZ$191
million.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance.
On Aug. 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under heightened
surveillance since 2008. As part of that, SCF was granted a
Trustee waiver in February 2010 to allow it time to recapitalize.
Unfortunately, the Company's Directors have advised us that they
have not been successful with respect to a recapitalization and
requested us to appoint a receiver. At this point, we, as
Trustee, agree that it is the best interests of debenture, deposit
and bond holders to do that," said Yogesh Mody, Southern Regional
Manager for Trustees Executors Limited.
The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.
=================
S I N G A P O R E
=================
DOVECHEM HOLDINGS: Court to Hear Wind-Up Petition July 15
---------------------------------------------------------
A petition to wind up the operations of Dovechem Holdings Pte Ltd.
will be heard before the High Court of Singapore on July 15, 2011,
at 10:00 a.m.
Ng Joo Soon @ Nga Ju Soon filed the petition against the company
on June 21, 2011.
The Petitioner's solicitors are:
Drew & Napier LLC
10 Collyer Quay
#10-01 Ocean Financial Centre
Singapore 049315
IP INTERACTIVE: Creditors' Proofs of Debt Due July 21
-----------------------------------------------------
Creditors of IP Interactive Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by July 21, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Ong Woon Pheng
C/o CAS Associates Pte. Ltd.
3 Shenton Way,
#03-05A Shenton House,
Singapore 068805
PEGU INTERNATIONAL: Creditors' Proofs of Debt Due Aug. 1
--------------------------------------------------------
Creditors of Pegu International Pte Ltd, which is in liquidation,
are required to file their proofs of debt by Aug. 1, 2011, to be
included in the company's dividend distribution.
The company's liquidators are:
Sim Guan Seng
Victor Goh
C/o Baker Tilly TFW LLP
15 Beach Road
#03-10 Beach Centre
Singapore 189677
PROCTER & GAMBLE: Creditors' Proofs of Debt Due July 29
-------------------------------------------------------
Creditors of Procter & Gamble Singapore Investment Pte Ltd, which
is in members' voluntary liquidation, are required to file their
proofs of debt by July 29, 2011, to be included in the company's
dividend distribution.
The company's liquidator is:
Aaron Loh Cheng Lee
Ernst & Young Solutions LLP
One Raffles Quay North Tower 18th Floor
Singapore 048583
RATHGIBSON PTE: Creditors' Proofs of Debt Due August 2
------------------------------------------------------
Creditors of Rathgibson Pte Ltd, which is in liquidation, are
required to file their proofs of debt by Aug. 2, 2011, to be
included in the company's dividend distribution.
The company's liquidator is:
Jacqueline Chan Li Shan
171 Chin Swee Road
#08-01 San Centre
Singapore 169877
VITC ASIA: Court to Hear Wind-Up Petition July 15
--------------------------------------------------
A petition to wind up the operations of VITC Asia Pte Ltd. will be
heard before the High Court of Singapore on July 15, 2011, at
10:00 a.m.
FMG Corporate Services Pte Ltd filed the petition against the
company on June 17, 2011.
The Petitioner's solicitors are:
Messrs Lim & Lim
8 Wilkie Road
#04-09 Wilkie Edge
Singapore 228095
===========
T A I W A N
===========
AMERICAN INT'L: Ruen Chen Submits Docs For Nan Shan Bid Approval
----------------------------------------------------------------
Crystal Hsu at Taipei Times reports that Taiwan's Financial
Supervisory Commission said Ruen Chen Investment Holding Co, the
winning bidder for American International Group Inc's Taiwanese
unit, Nan Shan Life Insurance Co, has filed the documents required
for regulatory approval.
The regulator, Taipei Times recalls, gave its approval last month
for the acquisition plan on condition that Ruen Chen put an extra
NTD6 billion (US$209.1 million) in a custodial account in 60 days
to meet future capital needs, among other requirements. Taipei
Times relates that the FSC said it was reviewing the new
documents.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 14, 2011, American International Group, Inc. unveiled an
agreement to sell its 97.57% interest in Nan Shan Life Insurance
Company, Ltd., for $2.16 billion in cash to Ruen Chen Investment
Holding Co., Ltd. The purchase agreement includes a number of
commitments that offer important protections for employees and
agents, including an agreement to maintain the existing
compensation and benefits package for employees and the existing
agency organizational and commission structure following the
closing of the transaction. Ruen Chen has also expressed its
intention to retain the current Nan Shan management team, as well
as its long-term commitment to maintain both its majority
ownership in Nan Shan and the Nan Shan brand. Debevoise &
Plimpton LLP and Lee & Li, Attorneys-At-Law served as legal
advisors to AIG on this transaction. The transaction is subject
to the receipt of regulatory approval.
About AIG
American International Group, Inc. -- http://www.aig.com/-- is an
international insurance organization with operations in more than
130 countries and jurisdictions. AIG companies serve commercial,
institutional and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In
addition, AIG companies are leading providers of life insurance
and retirement services around the world. AIG common stock is
listed on the New York Stock Exchange, as well as the stock
exchanges in Ireland and Tokyo.
In September 2008, AIG experienced a liquidity crunch when its
credit ratings were downgraded below "AA" levels by Standard &
Poor's, Moody's Investors Service and Fitch Ratings. AIG almost
collapsed under the weight of bad bets it made insuring mortgage-
backed securities. The Company, however, was bailed out by the
Federal Reserve, but even after an initial infusion of
$85 billion, losses continued to grow. The later rescue packages
brought the total to $182 billion, making it the biggest federal
bailout in U.S. history.
AIG has been working to protect and enhance the value of its key
businesses, execute an orderly asset disposition plan, and
position itself for the future. AIG has sold a number of its
subsidiaries and other assets to pay down loans received from the
U.S. government, and continues to seek buyers of its assets.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
July 21-24, 2011
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 27-30, 2011
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Sanctuary at Kiawah Island, Kiawah Island, S.C.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 4-6, 2011
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Tampa Convention Center, Tampa, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. __, 2011
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
Dublin, Ireland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
Hilton San Diego Bayfront, San Diego, CA
Contact: http://www.turnaround.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 3-5, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Grand Hyatt Atlanta, Atlanta, Ga.
Contact: http://www.turnaround.org/
Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
November 1-3, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Westin Copley Place, Boston, Mass.
Contact: http://www.turnaround.org/
Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact: 1-703-739-0800; http://www.abiworld.org/
April 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott Chicago, Chicago, Ill.
Contact: http://www.turnaround.org/
October 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante,
Rousel Elaine T. Fernandez, Psyche A. Castillon, 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 ***