/raid1/www/Hosts/bankrupt/TCRAP_Public/110817.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, August 17, 2011, Vol. 14, No. 162
Headlines
A U S T R A L I A
ALLOY TECHNOLOGIES: Goes Into Receivership, Owes AU$4 Million
BURRUP FERTILISERS: Justices Question Oswal Call to Stay in Dubai
REDGROUP RETAIL: Collins Booksellers Buys 20 A&R Stores
* AUSTRALIA: More SMEs Failures Expected in Next Six Months
H O N G K O N G
HOKOGAMA LIMITED: Court to Hear Wind-Up Petition on Sept. 14
INCORPORATED OWNERS: Court Enters Wind-Up Order
KARBO DEVELOPMENT: Court Enters Wind-Up Order
KINGSKEY INTERNATIONAL: Lo and Leung Appointed as Liquidators
LAI LEE: Tam and Chi Appointed as Liquidators
NARITA ELECTRONIC: Court Enters Wind-Up Order
PHYSICAL PROPERTY: Incurs HK$119,000 Net Loss in Second Quarter
RIGHT TOP: Court Enters Wind-Up Order
SHENG HSI: Sutton and Fok Appointed as Liquidators
SHUI WING: Lo and Leung Appointed as Liquidators
SKY VISION: Court to Hear Wind-Up Petition on Aug. 24
STRATEGIC FINANCIAL: Court to Hear Wind-Up Petition on Sept. 21
SUNNY TECH: Creditors' Proofs of Debt Due Aug. 30
TAK CHEONG: Court to Hear Wind-Up Petition on Sept. 14
TOPLY HOLDINGS: Court Enters Wind-Up Order
VEE PEE: Court to Hear Wind-Up Petition on Oct. 12
VEGAS KNITTERS: Creditors' Proofs of Debt Due Aug. 30
VICTORY FIELD: Court Enters Wind-Up Order
WEALTH FAITH: Lo and Leung Appointed as Liquidators
WORLD ASSET: Court to Hear Wind-Up Petition on Oct. 12
I N D I A
AIR INDIA: Union Government Rules Out Privatization Move
BRAMHACORP HOTELS: Fitch Rates INR1.45BB Loan at 'Fitch B+(ind)'
CHOWDARY ENTERPRISES: CRISIL Rates INR68.4MM Loan at 'CRISIL BB'
ETCO DENIM: CRISIL Rates INR2.4 Billion Term Loan at 'CRISIL B+'
INTER CARAT: CRISIL Assigns 'CRISIL BB+' Rating to INR74.9MM Loan
KAMDAR & ASSOC: CRISIL Raises INR40MM Loan Rating to CRISIL BB-
KESRI STEELS: CRISIL Rates INR150MM Cash Credit at 'CRISIL B+'
N K TOWER: CRISIL Rates INR180MM Cash Credit at 'CRISIL BB'
OM VISHWAKARMA: CRISIL Assigns 'CRISIL BB' Rating to INR15MM Loan
R M KNITTERS: CRISIL Reaffirms CRISIL BB Rating on INR116MM Loan
ROHINI TEXTILE: CRISIL Assigns CRISIL BB- Rating to INR1.2BB Loan
S. R. COTTON: CRISIL Rates INR60-Mil. Cash Credit at 'CRISIL B'
S.R INDUSTRIES: CRISIL Cuts Rating on INR225MM Loan to 'CRISIL D'
SAGAR LAXMI: CRISIL Upgrades Rating on INR40MM Loan to CRISIL BB-
SHIVALIK POWER: CRISIL Ups Rating on INR86.7MM Loan to CRISIL B+
SURYAAMBA SPINNING: CRISIL Cuts Rating on INR100MM Loan to 'BB-'
SUSHRUTA VISHRANTHI: CRISIL Cuts Cash Credit Rating to CRISIL B-
T & T PROJECTS: CRISIL Reaffirms 'CRISIL BB+' Cash Credit Rating
TRANSSTROY (INDIA): CRISIL Cuts Rating on INR1.24BB Loan to 'BB+'
TWENTY FIRST: CRISIL Assigns 'CRISIL BB' Rating on INR110MM Loan
UNIMAX CHEMICALS: CRISIL Rates INR45MM Proposed Loan at CRISIL B+
J A P A N
AGURA BOKUJO: Total Debts Reach JPY433.08 Billion
INCUBATOR BANK: Aeon Bank May Win Bid to Acquire Bank
JLOC XXXIII: S&P Lowers Rating on Class D Trust Certs. to CC(sf)
TRUST FONTANA: Moody's Assigns '(P)Ba2' to Class D Certificates
N E W Z E A L A N D
PGG WRIGHTSON: Bondholders Back Sale Deal With Heartland
SOUTH CANTERBURY: Nomura Buys NZ$123 Million Loan Book
S I N G A P O R E
GRIFFIN CAPITAL: Creditors' Proofs of Debt Due Sept. 12
HUAT SOON: Creditors' Proofs of Debt Due Sept. 12
KOMATSU FORKLIFT: Creditors' Proofs of Debt Due Sept. 12
LEGACY VENTURES: Creditors' Proofs of Debt Due Sept. 12
SINO-ENVIRONMENT TECHNOLOGY: Creditors' Meeting Set for Aug. 26
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A U S T R A L I A
=================
ALLOY TECHNOLOGIES: Goes Into Receivership, Owes AU$4 Million
-------------------------------------------------------------
ABC News reports that Alloy Technologies International has gone
into receivership with total debts of about AU$4 million.
Martin Lewis from receivers Ferrier Hodgson says 21, mostly
casual, workers have been laid off, according to ABC News.
The report notes that Mr. Lewis hopes a buyer may be found and
says several interested parties have made inquiries, but admits
it is a difficult time to sell.
"It really depends on the specifics of the business but this
particular business, a business of a foundry and cast alloy
parts, predominantly for use in the automotive industry, is quite
tough," ABC News quoted Mr. Lewis as saying. We are attempting
to obtain urgent expressions of interest with a view to
resurrecting the business and recovering the workforce if
possible but that will be subject to negotiations with interested
parties."
Wingfield-based Alloy Technologies International supplies parts
to the automotive industry.
BURRUP FERTILISERS: Justices Question Oswal Call to Stay in Dubai
-----------------------------------------------------------------
Elisabeth Sexton at The Sydney Morning Herald reports that Pankaj
Oswal's decision to stay overseas while he takes legal action
against the receivers of Burrup Fertilisers prompted repeated
comments from judges hearing an appeal in the full Federal Court.
Mr. Oswal, who has been living in Dubai since the ANZ bank
appointed three partners of PPB Advisory as receivers in
December, is trying to gain access to documents about the
proposed sale of Burrup's main asset, according to The Sydney
Morning Herald. The report relates that Mr. Oswal is applying
for the documents in his capacity as a director of Burrup
Fertilisers.
Justice John Dowsett, according to the report, said that this
approach had the potential "to change the way receiverships are
conducted."
Justice John Nicholas asked Mr. Oswal's barrister, Peter
Collinson, SC, about the risk of even inadvertent disclosure of
"highly sensitive" information if material was sent to Mr. Oswal
in Dubai, The Sydney Morning Herald discloses.
Justice Lindsay Foster, the report relays, asked why the
confidentiality of the negotiations should be put at risk "unless
there's some real basis for a concern that the proper
administration of the receivership is not being undertaken."
The Sydney Morning Herald relays that Mr. Collinson said that
legal precedents showed the court should focus instead on whether
access was likely to harm the receivership.
Headquartered in Karratha in Western Australia, Burrup
Fertilisers
Pty Ltd -- http://www.bfpl.com.au/-- is Australia's largest
ammonium producer. The company has a production capacity of 850-
tonnes of liquid ammonia a year.
* * *
As reported in the Troubled Company Reporter on Dec. 20, 2010,
The Australian related that Burrup Fertilisers Pty Ltd has been
placed into receivership with debts of about AU$800 million. ANZ
Bank appointed PPB Advisory as receivers to Burrup Fertilisers.
ANZ has also appointed the same receivers, PPB Advisory, over
shares held by members of the Oswal Group in related company
Burrup Holdings. The bank is alleging "evidence of financial
irregularities" as well as the usual default triggers relating to
debt facilities established between 2002 and 2007, The Australian
said.
REDGROUP RETAIL: Collins Booksellers Buys 20 A&R Stores
-------------------------------------------------------
SmartCompany reports that franchisee-owned Collins Booksellers
has bought 20 stores from the REDgroup Retail Pty Ltd, and is in
discussions with other former Angus & Robertson franchisees who
are now trading as independents.
Daniel Jordon, Collins Booksellers chief executive officer, said
the addition of 20 A&R stores -- 18 franchisees and two ex-
company stores -- sums the Company's holdings to 72 stores
nationwide, SmartCompany says.
SmartCompany relates Mr. Jordon said the new stores, which are
expected to start trading as Collins over the next month to six
weeks, represent an "even spread across the country",
particularly regional New South Wales, South-East Queensland, and
Western Australia.
A price has not been disclosed for the assets, SmartCompany
notes.
About REDgroup Retail
REDgroup Retail Pty, with 260 stores and brands including Angus &
Robertson and Whitcoulls, is the largest book retailer in
Australia and New Zealand. It acquired Borders stores in
Australia, New Zealand, and Singapore in 2008.
* * *
REDgroup Retail Pty Ltd. on Feb. 17, 2011, named 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
* AUSTRALIA: More SMEs Failures Expected in Next Six Months
-----------------------------------------------------------
The Sydney Morning Herald's MySmallBusiness reports that small
enterprises in Australia should brace for even weaker trading
conditions this quarter as the global sharemarket rout batters
consumer confidence, hampers credit availability, and threatens
cash flow.
MySmallBusiness said it asked credit collection, insolvency and
small business experts for their assessment of the rout's effect
on small and medium-size enterprises (SMEs), and for early
warnings signs about likely business conditions.
MySmallBusiness said the views were grim. "We expect more
business failures in the next three to six months,"
MySmallBusiness quotes Dun & Bradstreet's director of credit
information services, Damian Karmelich, as saying.
"We have downgraded the credit score of more firms during the
past six months than we did during the peak of the global
financial crisis in 2008. More local SMEs are at risk now than
during the worst crisis in 70 years, according to our credit
assessments."
According to the report, small businesses not exposed to the
mining sector face intense pressure on several fronts, with the
sharemarket correction likely to damage already weak consumer
confidence and retail sales as investors and superannuants feel
less wealthy.
Mr. Karmelich, as cited by MySmallBusiness, said the latest D&B
Consumer Credit Expectations survey showed a significant year-on-
year decline in consumers who anticipate applying for new credit
products, and more consumers struggling to meet repay debts.
"This is not a good sign for small enterprises exposed to
discretionary consumer spending."
================
H O N G K O N G
================
HOKOGAMA LIMITED: Court to Hear Wind-Up Petition on Sept. 14
------------------------------------------------------------
A petition to wind up the operations of Hokogama Limited will be
heard before the High Court of Hong Kong on Sept. 14, 2011, at
9:30 a.m.
INCORPORATED OWNERS: Court Enters Wind-Up Order
-----------------------------------------------
The High Court of Hong Kong entered an order on Aug. 3, 2011, to
wind up the operations of The Incorporated Owners of Nos. 211-
215C.
The Official Receiver is Teresa S W Wong.
KARBO DEVELOPMENT: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Hong Kong entered an order on Aug. 3, 2011, to
wind up the operations of Karbo Development Limited.
The Official Receiver is Teresa S W Wong.
KINGSKEY INTERNATIONAL: Lo and Leung Appointed as Liquidators
-------------------------------------------------------------
Lo Ka Ying and Leung Ka Lok on Aug. 12, 2011, were appointed as
liquidators of Kingskey International Limited.
The liquidators may be reached at:
Lo Ka Ying
Leung Ka Lok
Room 1307, Tower 1
Lippo Centre
89 Queensway
Admiralty, Hong Kong
LAI LEE: Tam and Chi Appointed as Liquidators
---------------------------------------------
Kenny King Ching Tam and Shum Lap Chi on July 26, 2011, were
appointed as liquidators of Lai Lee Button Manufacturing Limited.
The liquidators may be reached at:
Kenny King Ching Tam
Shum Lap Chi
Room 908 9/F
Nan Fung Tower
173 Des Voeux
Road Central
Hong Kong
NARITA ELECTRONIC: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Hong Kong entered an order on Aug. 3, 2011, to
wind up the operations of Narita Electronic Company Limited.
The Official Receiver is Teresa S W Wong.
PHYSICAL PROPERTY: Incurs HK$119,000 Net Loss in Second Quarter
---------------------------------------------------------------
Physical Property Holdings Inc. filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q,
reporting a net loss and total comprehensive loss of HK$119,000
on HK$208,000 of total operating revenues for the three months
ended June 30, 2011, compared with a net loss and total
comprehensive loss of HK$138,000 on HK$164,000 of total operating
revenues for the same period during the prior year.
The Company also reported a net loss and total comprehensive loss
of HK$271,000 on HK$401,000 of total operating revenues for the
six months ended June 30, 2011, compared with a net loss and
total comprehensive loss of HK$279,000 on HK$348,000 of total
operating revenues for the same period a year ago.
The Company's balance sheet at June 30, 2011, showed HK$10.51
million in total assets, $HK11.27 million in total liabilities,
all current, and a HK$764,000 total stockholders' deficit.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/DtmKDR
About Physical Property
Physical Property Holdings Inc. (formerly known as Physical Spa &
Fitness Inc.), through its wholly owned subsidiary Good Partner
Limited, owns five residential apartments located in Hong Kong.
The Company was incorporated on Sept. 21, 1988, under the laws
of the United States of America.
The Company reported a net loss and total comprehensive loss of
HK$640,000 on HK$765,000 of rental income for the year ended
Dec. 31, 2010, compared with a net loss and total comprehensive
loss of HK$899,000 on HK$602,000 of rental income during the
prior year.
As reported by the TCR on April 7, 2011, Mazars CPA Limited, in
Hongkong, expressed substantial doubt about the Company's ability
to continue as a going concern, following the Company's 2010
financial results. The independent auditors noted that the
Company had a negative working capital as of Dec. 31, 2010 and
incurred loss for the year then ended.
RIGHT TOP: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on Aug. 3, 2011, to
wind up the operations of Right Top Manufacturing Limited.
The Official Receiver is Teresa S W Wong.
SHENG HSI: Sutton and Fok Appointed as Liquidators
--------------------------------------------------
Roderick John Sutton and Fok Hei Yu on May 5, 2011, were
appointed as liquidators of Sheng Hsi Foo Company Limited.
The liquidators may be reached at:
Roderick John Sutton
Fok Hei Yu
c/o Ferrier Hodgson Limited
The Hong Kong Club Building, 14/F
3A Chater Road
Central, Hong Kong
SHUI WING: Lo and Leung Appointed as Liquidators
------------------------------------------------
Lo Ka Ying and Leung Ka Lok on Aug. 12, 2011, were appointed as
liquidators of Shui Wing Construction Engineering Limited.
The liquidators may be reached at:
Lo Ka Ying
Leung Ka Lok
Room 1307, Tower 1
Lippo Centre
89 Queensway
Admiralty, Hong Kong
SKY VISION: Court to Hear Wind-Up Petition on Aug. 24
-----------------------------------------------------
A petition to wind up the operations of Sky Vision Asia
Investment Limited will be heard before the High Court of Hong
Kong on Aug. 24, 2011, at 9:30 a.m.
The Petitioner's solicitors are:
Chong & Partners
8/F, BOC Group Life Assurance Tower
136 Des Vouex Road
Central, Hong Kong
STRATEGIC FINANCIAL: Court to Hear Wind-Up Petition on Sept. 21
---------------------------------------------------------------
A petition to wind up the operations of Strategic Financial
Services (HK) Limited will be heard before the High Court of
Hong Kong on Sept. 21, 2011, at 9:30 a.m.
The Petitioner's solicitors are:
Solomon C. Chong & Co.
19th Floor, Kwong Fat Hong Building
1 Rumsey Street
Central, Hong Kong
SUNNY TECH: Creditors' Proofs of Debt Due Aug. 30
------------------------------------------------
Creditors of Sunny Tech (Far East) Industrial Limited, which is
in members' voluntary liquidation, are required to file their
proofs of debt by Aug. 30, 2011, to be included in the company's
dividend distribution.
The company's liquidator is:
Lau Sui Hung
Rooms 1909-10, Nan Fung Tower
173 Des Voeux Road
Central, Hong Kong
TAK CHEONG: Court to Hear Wind-Up Petition on Sept. 14
------------------------------------------------------
A petition to wind up the operations of Tak Cheong Engineering
Development Limited will be heard before the High Court of
Hong Kong on Sept. 14, 2011, at 9:30 a.m.
Chevalier (Construction) Co Ltd filed the petition against the
company on Aug. 7, 2011.
The Petitioner's solicitors are:
Robertson
57th Floor, The Center
99 Queen's Road
Central, Hong Kong
TOPLY HOLDINGS: Court Enters Wind-Up Order
------------------------------------------
The High Court of Hong Kong entered an order on Aug. 3, 2011, to
wind up the operations of Toply Holdings Limited.
The Official Receiver is Teresa S W Wong.
VEE PEE: Court to Hear Wind-Up Petition on Oct. 12
--------------------------------------------------
A petition to wind up the operations of Vee Pee Global Limited
will be heard before the High Court of Hong Kong on Oct. 12,
2011, at 9:30 a.m.
Bank of Baroda filed the petition against the company on July 29,
2011.
The Petitioner's solicitors are:
Wilkinson & Grist
6th Floor, Prince's Building
Chater Road, Central
Hong Kong
VEGAS KNITTERS: Creditors' Proofs of Debt Due Aug. 30
-----------------------------------------------------
Creditors of Vegas Knitters Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Aug. 30, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Lau Sui Hung
Rooms 1909-10, Nan Fung Tower
173 Des Voeux Road
Central, Hong Kong
VICTORY FIELD: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on Aug. 3, 2011, to
wind up the operations of Victory Field Limited.
The Official Receiver is Teresa S W Wong.
WEALTH FAITH: Lo and Leung Appointed as Liquidators
---------------------------------------------------
Lo Ka Ying and Leung Ka Lok on Aug. 12, 2011, were appointed as
liquidators of Wealth Faith Asia Limited.
The liquidators may be reached at:
Lo Ka Ying
Leung Ka Lok
Room 1307, Tower 1
Lippo Centre
89 Queensway
Admiralty, Hong Kong
WORLD ASSET: Court to Hear Wind-Up Petition on Oct. 12
------------------------------------------------------
A petition to wind up the operations of World Asset International
Limited will be heard before the High Court of Hong Kong on
Oct. 12, 2011, at 9:30 a.m.
Hong Kong Property Services (Agency) Limited filed the petition
against the company on Aug. 3, 2011.
The Petitioner's solicitors are:
Tony Kan & Co.
Suite 1808, World-Wide House
No. 19 Des Voeux Road
Central, Hong Kong
=========
I N D I A
=========
AIR INDIA: Union Government Rules Out Privatization Move
--------------------------------------------------------
The Hindu reports that the Union government on Friday ruled out
any move to privatize Air India following sharp criticism from
the Opposition over the poor financial health of the state
carrier.
The government said all possible steps were being taken to put
Air India back on track to make it a viable and competitive
entity within a foreseeable future, The Hindu reports.
Responding to members' concern expressed during a calling
attention motion in the Lok Sabha, The Hindu relates, Minister of
State for Parliamentary Affairs V. Narayanasamy said the
government would provide "all possible support" to strengthen the
state carrier.
According to the news agency, Gurudas Dasgupta of the Communist
Party of India accused the government of deliberately leading Air
India to bankruptcy to privatize it. The Hindu relates that the
Bharatiya Janata Party members said the government was doing
nothing to help the bleeding "Maharaja," which used to be a
symbol of prestige, and was now on death bed.
Targeting Air India's chairman and managing director for the mess
and attacking the Prime Minister's Office for his appointment,
The Hindu notes, the Opposition demanded an overhaul of the
entire management followed by full financial infusion. It
contended that the recent INR1,200 crore package was not enough,
The Hindu states.
The Hindu says Mr. Narayanasamy, replying on behalf of Civil
Aviation Minister Vayalar Ravi, said several steps were being
taken to turn around the airline that included a complete
"rationalisation" of manpower. "If any officer is found
responsible for the losses, government will take action."
Dissatisfied with the reply, The Hindu relates, the Opposition
members staged a walkout.
Mr. Narayanasamy, as cited by The Hindu, said a turnaround plan
with financial support would be unveiled soon. The entire
exercise of finalizing the Financial Restructuring Plan and
restructuring of loans would take about three months.
About Air India
Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world. Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle
East, and Air India Cargo provides freight transportation. The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on
domestic routes. The combined airline, part of a new holding
company called National Aviation Company of India, uses the Air
India brand. The new Air India and its affiliates have a fleet
of more than 110 aircraft altogether.
* * *
The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been
bleeding cash due to excess capacity, lower yield, a drop in
passenger numbers, an increase in fuel prices and the effects of
the global slowdown. The carrier incurred net losses of
INR2,226.16 crore in 2007-08 and INR5,548 crore in 2008-09. Air
India is estimated to have lost INR54 billion in the fiscal year
ended March 31, 2010, according to The Wall Street Journal.
The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000
crore of accumulated losses and INR18,000 crore of debt on its
balance sheet by 2014-15. The plan includes raising the
company's fleet strength to as many as 275 planes from 148 in
five years. Air India Chairman and Managing Director Arvind
Jadhav said the new 100-page turnaround plan for 2010-14, which
ruled out any job cuts or wage reductions, was approved by the
board and would be adopted after incorporating suggestions by
representatives of the airline's 33,500 employees.
BRAMHACORP HOTELS: Fitch Rates INR1.45BB Loan at 'Fitch B+(ind)'
----------------------------------------------------------------
Fitch Ratings has assigned India's Bramhacorp Hotels & Resorts
Limited a National Long-Term rating of 'Fitch B+(ind)'. The
Outlook is Stable. The agency has also assigned ratings to
BCHRL's bank loans as follows:
-- INR1,450 million long-term loans: 'Fitch B+(ind)'; and
-- INR450 million fund-based limits: 'Fitch B+(ind)'.
BCHRL's ratings reflect its long operational track record in the
hospitality sector, as well as the technical and marketing
support provided by the Bramha group on the back of a common
management. The ratings further reflect the strength the company
derives from the brand name (Le-Meridien) for its hotel in Pune,
for which it has a management contract with 'Starwood Hotels &
Resorts Worldwide Inc.' ('BB+'/Positive). Le-Meridien (Pune)
caters mostly (over 95%) to the corporate clients, and has a
strong brand value and acceptance.
The ratings are constrained by the inherent volatility of the
hospitality sector. BCHRL's revenue was impacted majorly in the
financial year ended March 31, 2010 (FY10) and marginally in FY09
and FY11, due to a fall in occupancy and average room rates
(ARR). Fitch notes that the oversupply situation in the five-
star categories in Pune may adversely impact occupancy levels and
ARR.
The ratings are also constrained by the company's ongoing capex
of INR1,400 million at Le Meridien (Mahableshwar), scheduled to
be completed by December 2012. Fitch expects BCHRL's financial
leverage (net debt/operating EBITDA) and interest coverage to
deteriorate over the next two years due to an increase in
borrowings for the capex
Positive ratings guidelines include a sustained increase in
BCHRL's interest cover to above 2.5x. Negative rating guidelines
include a sustained decrease in BCHRL's interest cover to below
1.5x.
Incorporated in 1987, BCHRL has been operating Le Meridian (Pune)
since 1999. For FY11, the company's revenue was INR573.7 million
(FY10: INR587.9 million) and EBIDTA was INR178.6 million (FY10:
INR216.7 million).
CHOWDARY ENTERPRISES: CRISIL Rates INR68.4MM Loan at 'CRISIL BB'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the term
loan facility of Chowdary Enterprises.
Facilities Ratings
---------- -------
INR68.4 Million Term Loan CRISIL BB/Stable (Assigned)
The rating reflects CE's healthy financial risk profile, marked
by healthy debt protection metrics, and a moderate net worth, and
the extensive experience of its promoters in the poultry
equipment industry. These rating strengths are partially offset
by CE's small scale of operations and its susceptibility to the
end user demand.
Outlook: Stable
CRISIL believes that CE will continue to benefit from its
established customer relationships and promoters' extensive
industry experience, over the medium term. The outlook may be
revised to 'Positive' if CE scales up its operations and
maintains its profitability. Conversely, the outlook may be
revised to 'Negative' if CE's revenues and profitability come
under pressure because of a slowdown in demand or the company
undertakes a large, debt-funded capital expenditure programme,
adversely affecting its capital structure.
About Chowdary Enterprises
CE, based in Hyderabad (Andhra Pradesh), was incorporated in
1983. CE is a proprietorship concern of Mrs. Potluri Vani, wife
of Mr. Chakradhar Rao, who has around 30 years of experience in
similar lines of business. CE is a part of the Chakra Group,
which is the largest domestic player in poultry equipment
manufacturing. The Chakra group is constituted by four group
companies namely Weld Fuse Pvt. Ltd. (rated 'CRISIL BBB-/Stable'
by CRISIL), CE, Chakradhar Farm Equipments Pvt Ltd (CFEPL) and
Ramesh Wire Mesh Industries (RWML). CE manufactures iron
structures and feeding systems primarily for the poultry
industry. The firm derives 100% of its revenues from the poultry
industry.
CE's profit after tax (PAT) and net sales for 2010-11 (refers to
financial year, April 1 to March 31) are estimated at INR1
million and INR361 million respectively. CE reported a PAT of
INR16 million on net sales of INR250 million for 2009-10, as
against a PAT of INR7 million on net sales of INR185 million for
2008-09.
ETCO DENIM: CRISIL Rates INR2.4 Billion Term Loan at 'CRISIL B+'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the term
loan facility of Etco Denim Pvt Ltd.
Facilities Ratings
---------- -------
INR2.4 Billion Term Loan CRISIL B+/Stable (Assigned)
The rating reflects EDPL's exposure to project execution and
offtake risks. This rating weakness is partially offset by the
extensive experience of EDPL's promoters in the textile industry.
Outlook: Stable
CRISIL believes that EDPL will benefit over the medium term from
the extensive experience of its promoters and established
relationships with its customers. The outlook may be revised to
'Positive' in case the company commissions the project on time
and demonstrates higher-than-expected capacity utilization,
leading to a significant improvement in its debt-servicing
metrics. Conversely, the outlook may be revised to 'Negative' in
case of significant time and cost overruns, resulting in weakened
capacity to service debt.
About Etco Denim
Promoted by Mr. Ramesh D Shah, EDPL is setting up a completely
integrated denim manufacturing unit. Mr. Shah has been in the
textile industry through another company, Etco Spinners Pvt Ltd
(ESPL), which has been manufacturing cotton yarn for more than
five years. ESPL has yarn spinning capacity of around 5000 tonnes
per annum. EDPL's project, located in Bijapur (Karnataka), will
have capacity to manufacture 40 million meters per annum. The
total project cost is estimated at around INR3.6 billion and is
expected to be funded through a debt-equity ratio of 2:1. Mr.
Shah is supported by Mr. S N Kucchal, who has more than three
decades of experience in the textile industry.
INTER CARAT: CRISIL Assigns 'CRISIL BB+' Rating to INR74.9MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to
the bank facilities of Inter Carat Jewelry Pvt Ltd.
Facilities Ratings
---------- -------
INR10.0 Million Cash Credit CRISIL BB+/Stable (Assigned)
INR74.9 Million Proposed LT CRISIL BB+/Stable (Assigned)
Bank Loan Facility
INR75.0 Million Packing Credit CRISIL A4+ (Assigned)
INR190.0 Million Post-Shipment CRISIL A4+ (Assigned)
Credit
The ratings reflects ICJPL's geographically diversified
clientele, adequate risk management policies, and funding support
from promoters. These rating strengths are partially offset by
ICJPL's moderate financial risk profile, working-capital-
intensive operations, and low operating margin in a highly
competitive jewellery industry.
Outlook: Stable
CRISIL believes ICJPL will continue to benefit over the medium
term from its geographically diversified clientele. The outlook
may be revised to 'Positive' in case the company significantly
improves its scale of operations and profitability. Conversely,
the outlook may be revised to 'Negative' in case its
profitability declines from the current level or if ICJPL's
working capital requirements increase significantly, thereby
weakening its financial risk profile.
About Inter Carat
Incorporated in 2003, IJPL manufactures gold and diamond-studded
jewellery. The company is promoted by Ms. Priti Mehta and her
husband, Mr. Majid Algouneh. Ms. Mehta's father, Mr. Harshad
Mehta, who is the non-executive chairman of the company, has
significant expertise in the jewellery and diamond business. IJPL
exports to markets such as Europe, the Middle East, the USA, and
Canada. The company also caters to the domestic market.
KAMDAR & ASSOC: CRISIL Raises INR40MM Loan Rating to CRISIL BB-
---------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Kamdar
& Associates to 'CRISIL BB-/Stable /CRISIL A4+' from 'CRISIL
B+/Stable/CRISIL A4'.
Facilities Ratings
---------- -------
INR40.0 Million Cash Credit Limit CRISIL BB-/Stable
(Upgraded from 'CRISIL
B+/Stable')
INR260.0 Million Letter of Credit CRISIL A4+ (Upgraded
from 'CRISIL A4')
The upgrade follows the improvement in Kamdar's business risk
profile, marked by significant top-line growth and better than
expected accruals in 2010-11 (refers to financial year, April 1
to March 31), backed by the revival in the ship-breaking industry
and increased financial support from partners. The top-line grew
to over INR560 million in 2010-11 from INR430 million in 2009-10.
Fresh infusion of funds to the tune of about INR30 million by the
partners during the year ensured lower reliance on external debt,
hence lower interest outgo, thereby positively impacting the net
cash accruals. Amid expectation of better availability of ships
and an improved outlook for the ship breaking industry, the top-
line is expected to be sustained while partners' commitment to
retain the profits generated in the business would continue to
support the business risk profile over the medium term.
The ratings reflect the benefits that Kamdar derives from its
promoters experience in the ship-breaking industry and the
healthy growth prospects for the industry. These rating strengths
are partially offset by Kamdar's exposure to risks related to
cyclicality in the shipping industry, to adverse regulatory
changes, and to volatility in steel scrap prices.
Outlook: Stable
CRISIL believes that Kamdar's business risk profile will continue
to benefit from the extensive experience of its partners,
supported by healthy growth prospects in the ship-breaking
industry, over the medium term. The outlook may be revised to
'Positive' if the firm is able to scale up operations without
deterioration in its capital structure. Conversely, the outlook
may be revised to 'Negative' if Kamdar reports a sharp decline in
margins, most likely because of a decline in scrap prices, or
does not recover the cost of ships purchased.
About Kamdar & Associates
Set up in 1984 as a partnership firm by Mr. Harshadkumar Shivlal
Padia, Mr. Rajubhai Nandial, and Mr. Mishrilal Hagamilal Shah,
Kamdar undertakes ship-breaking activities in Alang (Gujarat),
the leading centre of the ship-breaking and recycling industry in
Asia. The firm has a plot of 80 square metres in Alang. It
purchases ships as old as 20 years and breaks them into steel
plates, which it supplies to rolling mills in Gujarat.
For 2010-11, Kamdar's net profit is estimated at INR24.8 million
on net sales of INR560 million, against a reported net profit of
INR39.0 million on net sales of INR434 million for 2009-10.
KESRI STEELS: CRISIL Rates INR150MM Cash Credit at 'CRISIL B+'
--------------------------------------------------------------
CRISIL has assigned 'CRISIL B+/Stable' rating to the cash credit
facility of Kesri Steels Ltd.
Facilities Ratings
---------- -------
INR150 Million Cash Credit CRISIL B+/Stable (Assigned)
The rating reflects KSL's weak financial risk profile, marked by
a high gearing and weak debt protection metrics, small scale of
operations in the intensely competitive steel industry, and
vulnerability to volatility in raw material prices. These rating
weaknesses are partially offset by the benefits that KSL derives
from its promoters' extensive experience in the steel industry
and its diversified product portfolio catering to various
segments of the steel market, along with its flexibility to
change the product mix as per the market requirements.
Outlook: Stable
CRISIL believes that KSL will maintain its business risk profile
over the medium term, backed by its promoters' experience in the
steel industry. However, KSL's financial risk profile is expected
to remain weak during this period marked by a high gearing and
weak debt protection metrics. The outlook may be revised to
'Positive' if KSL's topline growth and profitability exceed
current expectations, leading to significant improvement in the
company's financial risk profile. Conversely, the outlook may be
revised to 'Negative' if KSL's financial risk profile weakens
because of lower-than-expected cash accruals, or if the company
undertakes a larger-than-expected, debt-funded capital
expenditure programme.
About Kesri Steels
KSL was incorporated in 1987 as DC Foods Ltd (DCFL) by the
Kothari family to manufacture food products. The company was then
sold to the Kirpal family, which started iron and steel business
under DCFL. In 1993-94 (refers to financial year, April 1 to
March 31), the Kirpal family sold its stake to the Gupta family
and the company's name was changed to KSL. In 2002-03 (refers to
financial year, April 1 to March 31), the Gupta family sold the
company to members of the Jain family, who are the current
owners. KSL's day-to-day operations are looked after by Mr. Rishi
Prakash Jain and his two sons, Mr. Jugal Kishore Jain and Mr.
Amit Jain.
KSL manufactures stainless steel ingots, castings, bars, round,
flat, stainless steel sheets, and other allied products related
to ferrous metals. It has an installed production capacity of
15,000 tonnes per annum (tpa) of stainless steel and alloy
ingots, 1500 tpa of castings, and 1500 tpa of stainless steel
sheets. The capacity utilisation is around 75%. KSL's facility is
at Bhiwadi (Rajasthan). The company sells its products under the
brand, KSL.
KSL's profit after tax (PAT) is estimated at INR1.8 million on
net sales of INR547.6 million for 2010-11, against a PAT of
INR0.3 million on net sales of INR381.9 million for 2009-10.
N K TOWER: CRISIL Rates INR180MM Cash Credit at 'CRISIL BB'
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the cash
credit facility of N K Tower Pvt Ltd.
Facilities Ratings
---------- -------
INR180 Million Cash Credit CRISIL BB/Stable (Assigned)
The rating reflects NKTPL's promoters' extensive experience in
the real estate business and moderate funding and implementation
risk. These rating strengths are partially offset by NKTPL's
susceptibility to high off-take risks and vulnerability to
cyclicality in the real estate sector.
Outlook: Stable
CRISIL believes that NKTPL will benefit over the medium term from
the extensive industry experience of its promoters. The outlook
may be revised to 'Positive' if NKTPL demonstrates higher-than-
expected offtake for the project, resulting in robust cash
inflows and liquidity. Conversely, the outlook may be revised to
'Negative' if NKTPL is unable to attract sufficient clients for
its remaining mall space or its long-term leases with its
existing customers get cancelled.
About N K Tower
Incorporated in 2003, NKTPL is a wholly owned subsidiary of the
Shrijan group, which was founded around 15 years ago by Mr. Shyam
Sundar Agarwal and his brothers, Mr. Pawan Agarwal, Mr. Ram
Naresh, and Mr. Vinod Agarwal. NKTPL is developing a commercial
property, Wood Square, with a saleable area of 120,800 square
feet in collaboration with seven other companies which include
RolCon Finvest Pvt. Ltd, K.C. Manufacturers (India) Pvt. Ltd,
Cosmic Asiana Pvt. Ltd, Kedha Mercantile Pvt. Ltd, Trammel
Commercial Pvt. Ltd, Kelvindeck Properties Pvt. Ltd and Dhumaboti
Griha Nirman Pvt. Ltd. The project is expected to be completed
by March 2012 and is located at the outskirts of Kolkata at
Narendarpur, P.S. Sonarpur, on N.S.C. Bose Road.
OM VISHWAKARMA: CRISIL Assigns 'CRISIL BB' Rating to INR15MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of Om Vishwakarma Furniture Pvt Ltd.
Facilities Ratings
---------- -------
INR15 Million Rupee Term Loan CRISIL BB/Stable (Assigned)
INR20 Million Cash Credit CRISIL BB/Stable (Assigned)
INR25 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect OVFPL's healthy financial risk profile,
marked by a low gearing and strong debt protection metrics, and
the company's established presence in the modular furniture
business supported by good customer relationships and its
promoters' experience. These rating strengths are, however,
partially offset by OVFPL's large working capital requirements
and small scale of operations in a fragmented and unorganized
industry.
Outlook: Stable
CRISIL believes that OVFPL will continue to benefit over the
medium term from its promoters' extensive experience and its
established relationships with its suppliers and customers. The
outlook may be revised to 'Positive' if the company scales up its
operations while it maintains its operating margin. Conversely,
the outlook may be revised to 'Negative' if larger-than-expected
working capital requirements, adversely affects the liquidity
profile of the company.
About Om Vishwakarma
OVFPL, incorporated in 1997 by Mr. Rajendra Vishwakarma, is in
the business of manufacturing and supplying furniture for
commercial offices and hotels. OVFPL's clientele includes Larsen
and Toubro group and Cipla Ltd. OVFPL is also the preferred
supplier for modular furniture for various schools and hotels.
The company currently plans to establish a showroom at its
manufacturing facility located at Umergaon for display of
standardized modular furniture. The total cost of the capex is
estimated to be around INR15.0 million; around 80% of the capex
will be funded through debt.
OVFPL reported a profit after tax (PAT) of INR11 million on net
sales of INR132 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR10.6 million on net
sales of Rs 112.3 million for 2009-10.
R M KNITTERS: CRISIL Reaffirms CRISIL BB Rating on INR116MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL A4+' rating to R M Knitters Pvt
Ltd's INR1.0-million letter of guarantee, while reaffirming its
ratings on the company's existing bank facilities at 'CRISIL
BB/Stable'.
Facilities Ratings
---------- -------
INR1.0 Million Letter of Guarantee CRISIL A4+ (Assigned)
INR82.5 Million Cash Credit CRISIL BB/Stable
(Enhanced from INR45.0 Million)
INR116.5 Million Term Loan CRISIL BB/Stable
(Enhanced from INR48.5 Million)
The rating reflects RMK's healthy operating efficiencies owing to
better capacity utilisation and cost reduction initiatives. This
rating strength is partially offset by RMK's weak financial risk
profile, marked by a high gearing, small net worth, and weak debt
protection metrics, and working-capital-intensive operations
resulting in weak liquidity.
Outlook: Stable
CRISIL believes that R M Knitters Pvt Ltd (RMK) will maintain its
moderate business risk profile and diversity in its products,
resulting in stable revenue growth over the medium term. The
outlook may be revised to 'Positive' in case of improvement in
the company's gearing along with improvement in its working
capital management. Conversely, the outlook may be revised to
'Negative' if RMK's operating profitability remains under
pressure, or if the company takes on large debt to fund capex,
adversely affecting its financial risk profile.
About R M Knitters
Set up in 2002 by Mr. Narendra Jiwarajka and Mr. Surendra
Jiwarajka, RMK manufactures basic, technical, and fancy fabric.
The company has an integrated facility in Silvassa (Maharashtra)
comprising 134 knitting machines, four texturising machines, and
one jari machine. Currently, the company has capacity to
manufacture about 400 tonnes of fabric per month.
RMK reported a profit after tax (PAT) of INR5.4 million on net
sales of INR362.2 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR4.4 million on net
sales of INR259.5 million for 2009-10.
ROHINI TEXTILE: CRISIL Assigns CRISIL BB- Rating to INR1.2BB Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Rohini Textile Industry Pvt Ltd.
Facilities Ratings
---------- -------
INR1.2109 Billion Term Loan CRISIL BB-/Stable (Assigned)
INR470 Million Cash Credit CRISIL BB-/Stable (Assigned)
INR216.3 Million Proposed LT CRISIL BB-/Stable (Assigned)
Bank Loan Facility
INR120 Million Letter of Credit CRISIL A4+ (Assigned)
The ratings reflect benefits that RTI derives from its moderately
integrated operations and its promoters' experience in the
textiles industry. These rating strengths are partially offset by
the RTI's below-average financial risk profile, marked by a high
gearing and moderate debt protection metrics, large working
capital requirements, and susceptibility to intense competition
in the textile industry.
Outlook: Stable
CRISIL believes that RTI will continue to benefit over the medium
term from its promoters' industry experience and its moderately
integrated operations. The outlook may be revised to 'Positive'
if RTI generates more-than-expected cash accruals as a result of
sustained improvement in its revenues and profitability, leading
to improved capital structure. Conversely, the outlook may be
revised to 'Negative' if RTI's financial risk profile weakens,
most likely because of any further debt-funded capital
expenditure, or drop in revenues and profitability.
About Rohini Textile
RTI (formerly, Rohini Knitting Company [RKC], a partnership firm)
was set up in 1974 by Mr. R. Semaliappan to manufacture
innerwear. RKC backward integrated into spinning, dyeing, and
processing through Rohini Mills; and Rohini Garments, a
proprietorship concern, to cater to export of ready-made
garments.
In 2008, the promoter restructured RKC and Rohini Mills to form
RTI for performing activities such as spinning, dyeing,
processing, and printing; the embroidering, manufacturing of
garments, and packaging activities were grouped under Rohini
Garments. Currently, RTI has an installed capacity of 32,000
spindles and 20 tonnes per day (tpd) of yarn dyeing and 50 tpd of
fabric dyeing across its two units located at Tirupur and
Perundurai (both in Tamil Nadu). The company also operates
windmills with a total capacity of 4.2 megawatts at Tamil Nadu.
RTI reported a profit after tax (PAT) of INR154 million on net
sales of INR1.13 billion for 2010-11 (refers to financial year,
April 1 to March 31), against a net loss of INR79 million on net
sales of INR1.0 billion for 2009-10.
S. R. COTTON: CRISIL Rates INR60-Mil. Cash Credit at 'CRISIL B'
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the cash
credit facility of S.R. Cotton.
Facilities Ratings
---------- -------
INR60 Million Cash Credit CRISIL B/Stable (Assigned)
The rating reflects SRC's weak financial risk profile, marked by
a small net worth, a high gearing and weak debt protection
metrics, small scale of operations with exposure to regulatory
risk, and vulnerability to volatility in cotton input prices.
These rating weaknesses are partially offset by the extensive
experience of SRC's promoters.
Outlook: Stable
CRISIL believes that SRC will continue to benefit over the medium
term from its promoters' extensive experience in the cotton
ginning industry. The outlook may be revised to 'Positive' in
case SRC's financial risk profile improves, driven by better-
than-expected cash accruals or improved working capital
requirements. Conversely, the outlook may be revised to
'Negative' in case of pressure on the firm's liquidity, resulting
from larger-than-expected working capital requirements or
withdrawal of unsecured loan from the promoters and their
acquaintances.
About S.R. Cotton
Set up in 2005-06 (refers to financial year, April 1 to
March 31), SRC is a proprietorship firm, engaged in ginning and
pressing of raw cotton. Between 2006 and 2008, the firm operated
from a leased facility and completed its own manufacturing
facility in 2008. This facility, located at Beed (Maharashtra),
has an installed capacity of 450 bales per day. During 2009-10,
SRC set up a unit at Sendhwa (Madhya Pradesh) to trade in raw
cotton.
SRC's profit after tax (PAT) is estimated at INR4.2 million on
net sales of INR489.8 million for 2010-11, against a PAT of
INR3.5 million on net sales of INR1256.0 million for 2009-10.
S.R INDUSTRIES: CRISIL Cuts Rating on INR225MM Loan to 'CRISIL D'
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
S.R Industries Ltd to 'CRISIL D' from 'CRISIL BB-/Stable/CRISIL
A4+'.
Facilities Ratings
---------- -------
INR12.0 Mil. Bill Discounting CRISIL D (Assigned)
INR81.0 Million Cash Credit CRISIL D (Downgraded from
'CRISIL BB-
/Stable')
INR225.0 Mil. Rupee Term Loan CRISIL D (Downgraded from
'CRISIL BB-
/Stable')
INR52.0 Million Export Packing CRISIL D (Downgraded from
Credit 'CRISIL A4+')
INR4.5 Million Letter of Credit CRISIL D (Downgraded from
& Bank Guarantee 'CRISIL A4+')
The downgrade reflects instances of delay by SRIL in servicing
its debt and its consistently overdrawn cash credit facility for
more than 30 days, on account of its weak liquidity. The
company's liquidity is weak on account of losses in 2010-11
(refers to financial year, April 1 to March 31) and incremental
working capital requirements.
SRIL has a weak financial risk profile, marked by high gearing,
on account of the large, debt-funded capital expenditure (capex)
for its footwear project. It also operates on a small scale, and
has a limited track record, in the footwear segment. The company,
however, benefits from its promoters' experience in the terry
towel manufacturing and exports business, and tie-up with PUMA AG
(PUMA) for the supply of footwear.
About S.R Industries
Set up by Mr. R C Mahajan and Mr. Yash Mahajan in 1989, SRIL
manufactures and exports terry towels and other home textiles,
primarily to Europe, the US, and Australia. The company's product
range includes plain dyed towels, beach towels, bath mats, and
bath robes. The company's facility at Derabassi (Punjab) has
capacity to produce 2200 tonnes of textile products per annum. In
the second half of 2009-10, SRIL set up a footwear manufacturing
unit in Baddi (Himachal Pradesh) after entering into a contract
manufacturing arrangement with PUMA.
SRIL reported on provisional basis a net loss of INR122 million
on net sales of INR385 million for 2010-11, as against a net loss
of INR9.8 million on net sales of INR229 million for 2009-10.
SAGAR LAXMI: CRISIL Upgrades Rating on INR40MM Loan to CRISIL BB-
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Sagar
Laxmi Ship Breakers to 'CRISIL BB-/Stable/CRISIL A4+' from
'CRISIL B+/Stable/CRISIL A4'.
Facilities Ratings
---------- -------
INR40.0 Million Cash Credit Limit CRISIL BB-/Stable
(Upgraded from 'CRISIL
B+/Stable')
INR260.0 Million Letter of Credit CRISIL A4+ (Upgraded
from 'CRISIL A4')
The rating upgrade reflects the improvement in SLSB's business
risk profile, marked by significant topline growth and sharp
increase in profitability in 2010-11 (refers to financial year,
April 1 to March 31), backed by the revival in the ship-breaking
industry. The firm's operating income increased to over INR400
million in 2010-11 from INR249 million in 2008-09; its operating
profitability has improved to over 12% in 2010-11 from an
operating loss in 2008-09. CRISIL believes that SLSB will sustain
its financial risk profile, backed by its partners' commitment to
retaining profits generated in the business, and its conservative
financial policy, as reflected in gearing of 0.22 times as on
March 31, 2011.
The ratings reflect the extensive industry experience of SLSB's
promoters and the healthy prospects for the ship-breaking
industry. These strengths are partially offset by SLSB's
susceptibility to cyclicality in the shipping industry, to
adverse regulatory changes, and to volatility in steel scrap
prices.
Outlook: Stable
CRISIL believes that SLSB will continue to benefit over the
medium term from the vast experience of its partners, supported
by healthy growth prospects for the ship-breaking industry. The
outlook may be revised to 'Positive' if the firm is able to scale
up its operations without deterioration in capital structure.
Conversely, the outlook may be revised to 'Negative' if SLSB
reports sharp decline in operating margin, most likely because of
a decline in scrap prices, or if it does not recover the cost of
ships purchased.
About Sagar Laxmi
Set up in 2002, SLSB is a partnership firm that undertakes ship-
breaking activities in Alang (Gujarat), the leading centre of
ship-breaking and recycling in Asia. It purchases ships as old as
20 years, breaks them into steel plates, and supplies the same to
rolling mills in Gujarat. It scrapped around 12,000 tonnes in
2010-11. Including the carry forward from last year, it scrapped
around 6000 tonnes in the first quarter of 2011-12. It has also
procured a vessel of around 9600 tonnes, the scrapping of which
started in July. It is expected to sustain the same level of
operations over the medium term.
SLSB, on a provisional basis, reported a profit after tax (PAT)
of INR45.2 million on net sales of INR400.9 million for 2010-11,
against a reported profit of INR45.5 million on net sales of
INR367.6 million for 2009-10.
SHIVALIK POWER: CRISIL Ups Rating on INR86.7MM Loan to CRISIL B+
-----------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Shivalik
Power and Steel Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL D'.
Facilities Ratings
---------- -------
INR92.5 Million Cash Credit CRISIL B+/Stable (Upgraded
from 'CRISIL D')
INR86.7 Million Long-Term Loan CRISIL B+/Stable (Upgraded
from 'CRISIL D')
INR197.5 Million Proposed LT CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL D')
The rating upgrade reflects CRISIL's belief that Shivalik will
sustain the improvement in its liquidity, driven by the disposal
of the inoperative 9-megawatt rice husk power plant. The assets
and liabilities pertaining to the aforesaid power plant have been
sold to Hira Ferro Alloys Ltd (Hira Ferro) of Raipur
(Chhattisgarh) for a net consideration of INR1 million. The
project sale resulted in the closure of all the debt contracted
for the power plant project; the company had been delaying the
servicing of the power-plant-project-related debt. The power
plant was rendered inoperative by the breakdown of the turbine in
March 2009. The restoration of operations, including replacement
of the turbine, took around 14 months, but could not be
stabilised.
Shivalik's foundry business, on the other hand, has registered a
compound annual growth rate of 7.5% over the four years ended
2010-11 (refers to financial year, April 1 to March 31), with the
operating margin stable at around 8%. Though the topline growth
of the division is expected to be muted over the medium term,
with weakening demand from the automobile segment (contributes
60% to Shivalik's revenues), this is expected to be mitigated by
an increase in demand from the railways segment, which accounts
for 40% of Shivalik's revenues. CRISIL believes that stable cash
flows from Shivalik's foundry division shall ensure continued
timely debt servicing.
CRISIL's rating reflects customer concentration in Shivalik's
revenue profile and its modest scale of operations in a highly
fragmented industry. These rating weaknesses are partially offset
by improvement in its financial risk profile after sale of the
loss-making power plant, and the promoter's extensive industry
experience.
Outlook: Stable
CRISIL believes that Shivalik will maintain its business risk
profile over the medium term, backed by its promoters' industry
experience and established relationships with customers and
suppliers. The outlook may be revised to 'Positive' if the
company is able to increase its scale of operations while
maintaining its profitability. Conversely, the outlook may be
revised to 'Negative' if it undertakes any large, debt-funded
capital expenditure programme or in case of an unprecedented
stretch in its working capital cycle.
About Shivalik Power
Shivalik was set up in 2004 in Raipur by Mr. Giriraj Singhania
and Mr. Raghwendra Singhania. It currently operates a foundry
with a capacity of 13,200 tonnes per annum, which was set up in
2007. Its main customers are Tata Motors Ltd (rated 'CRISIL AA-
/Stable/CRISIL A1+'), Eicher Motors Ltd, Addison & Co Ltd, and
Indian Railways. The company had set up a rice husk power plant
in 2004. As the project was unviable, the assets and liabilities
pertaining to the same were sold to Hira Ferro for a net
consideration of INR1 million.
For 2010-11 (refers to financial year, April 1 to March 31),
Shivalik incurred a loss of an estimated INR17.5 million on net
sales of INR645.7 million, as against a profit after tax of
INR5.1 million on net sales of INR646.0 million for the previous
year.
SURYAAMBA SPINNING: CRISIL Cuts Rating on INR100MM Loan to 'BB-'
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Suryaamba Spinning Mills Ltd to 'CRISIL BB-/Negative/CRISIL A4'
from 'CRISIL BB/Stable/CRISIL A4+'.
Facilities Ratings
---------- -------
INR100 Million Cash Credit CRISIL BB-/Negative
(Downgraded from 'CRISIL
BB/Stable')
INR193.2 Mil. Long Term Loan CRISIL BB-/Negative
(Enhanced from INR83.2 Million) (Downgraded from 'CRISIL
BB/Stable')
INR2.5 Million Bank Guarantee CRISIL A4
(Downgraded from
'CRISIL A4+')
INR5 Million Letter of Credit CRISIL A4
(Downgraded from
'CRISIL A4+')
The rating downgrade reflects the weakening of Suryaamba's
liquidity, as a result of increasing working capital requirements
and the stalled capital expenditure (capex) programme.
Suryaamba's liquidity has weakened because of aggressive
utilization of short-term borrowings for funding capex and
increasing raw material prices, leading to frequently overdrawn
bank limits over the past six months. Moreover, the company has
stalled its project in April 2011, so that it can avail the
undisbursed part of the term loans under the technology
upgradation funds scheme (TUFS), resulting in a delay in
implementation of its project. The company has already incurred
INR246 million of the proposed INR350 million for the project,
and has drawn down INR143.5 million of term loans.
The ratings reflect the experience of Suryaamba's promoters in
the yarn manufacturing business. These rating strengths are
partially offset by the expected deterioration in Suryaamba's
financial risk profile because of debt-funded capex and the
company's limited ability to pass on increase in raw material
prices.
Outlook: Negative
CRISIL believes that Suryaamba's liquidity will remain weak over
the medium term because of increasing working capital
requirements and delay in implementation of its debt-funded capex
programme. The ratings maybe downgraded if Suryaamba's liquidity
weakens further because of increasing working capital
requirements, and/or in case of delays in implementation of its
project. The outlook may be revised to 'Stable' in case of
improvement in the company's business performance, resulting from
higher-than-expected accruals generated from the new capacities.
About Suryaamba Spinning
Suryaamba was formed by the demerger of Suryalata Spinning Mills
Ltd's (Suryalata's) unit in Nayakund (Maharashtra) from Suryalata
in June 2007. Suryaamba manufactures polyester yarn and
polyester/viscose blended yarn in the count range of 20s to 45s.
Its products are used in manufacturing garments and apparels. The
company's managing director, Mr. Virender Kumar Agarwal, has been
associated with the textile industry for nearly 25 years. The
company's manufacturing unit at Nayakund has 28,080 spindles, and
is ISO 9001:2000 certified. Suryaamba has recently undertaken a
project involving an investment of INR350 million to increase its
number of spindles to 40,176. Since April 2011, the company has
also begun operating 3000 of the additional 12,000 spindles.
Suryaamba posted a provisional profit after tax (PAT) of INR54.7
million on net sales of INR1.17 billion for 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR3.3
million on net sales of INR826 million for 2009-10.
SUSHRUTA VISHRANTHI: CRISIL Cuts Cash Credit Rating to CRISIL B-
----------------------------------------------------------------
CRISIL has downgraded its rating on Sushruta Vishranthi Dhama
Ltd's bank facilities to 'CRISIL B-/Negative' from 'CRISIL
B/Negative'.
Facilities Ratings
---------- -------
INR150 Million Cash Credit CRISIL B-/Negative
(Downgraded from
'CRISIL B/Negative')
The downgrade reflects weakening of Suvidha's liquidity, caused
by less-than-expected booking of cottages at its upcoming
lifestyle retirement village in the past one year. The downgrade
also factors in time overruns and high demand risk in Suvidha's
ongoing project. The company has made minimal progress in sale of
its cottages - as on June 30, 2011, just 145 cottages had been
sold, against 127 cottages sold as on March 31, 2010. Suvidha's
outstanding cash credit limit was around INR140 million as on
June 30, 2011, which is repayable on demand in February 2012. The
downgrade also reflects CRISIL's belief that Suvidha's ability to
repay the cash credit facility will be severely constrained in
case cottage bookings do not increase significantly.
The rating reflects Suvidha's susceptibility to project
implementation risks, and its stringent shareholder criteria,
resulting in lower offtake of cottages. These weaknesses are
partly offset by the advantageous location of the company's
project and its good infrastructure.
Outlook: Negative
CRISIL believes that Suvidha's ability to repay its outstanding
cash credit in February 2012 will be severely constrained because
of the lower-than-expected booking levels for its cottages. The
rating may be downgraded if the company is not able to sell the
desired number of cottages, thereby further weakening its debt
servicing ability and constraining its liquidity. Conversely, the
outlook may be revised to 'Stable' if Suvidha's liquidity
improves on account of higher-than-expected cottage bookings.
About Sushruta Vishranthi
Suvidha was incorporated in November 2004 and promoted by the
promoters of Sushruta Medical Aid and Research Hospital Ltd
(rated 'CRISIL BBB/Stable/ CRISIL A3+'). Suvidha is building a
lifestyle retirement village on the outskirts of Bengaluru
(Karnataka). Originally incorporated to cater to the post-
retirement needs of promoter-doctors, Suvidha's management later
decided to involve the general public in the project. The
interested parties have to subscribe to the shares of the
company. The shareholders do not own any portion of the land or
building directly, but derive a right to live in the village by
virtue of the shareholder's agreement they enter into at the time
of purchasing the shares. One shareholder can own a maximum of
two cottages. The project originally consisted of 200 cottages;
this has been marginally scaled down and now the total stands at
197 cottages. As the company does not sell the cottages, minimal
revenues would be booked.
T & T PROJECTS: CRISIL Reaffirms 'CRISIL BB+' Cash Credit Rating
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of T & T Projects Ltd
continue to reflect T&T's moderate financial risk profile, marked
by a low gearing and moderate debt protection metrics, and
promoters' experience in executing turnkey projects. These rating
strengths are partially offset T&T's modest scale of operations,
geographical concentration in revenue profile, and large working
capital requirements.
Facilities Ratings
---------- -------
INR100 Million Cash Credit CRISIL BB+/Stable
(Reaffirmed)
INR460 Million Bank Guarantee CRISIL A4+
(Enhanced from INR358 Million)
Outlook: Stable
CRISIL believes that T&T will maintain its business risk profile,
supported by its strong unexecuted order book, over the medium
term. The outlook may be revised to 'Positive' if T&T continues
to increase its revenues and profitability, while it maintains
its debt protection metrics. Conversely, the outlook may be
revised to 'Negative' if T&T faces significant pressure on its
revenues, its liquidity weakens significantly because of large
working capital requirements, or it undertakes a large, debt-
funded capex.
About T & T Projects
Set up in 1980 by the Jalan family of Guwahati (Assam), T&T
(formerly, Trade & Technology) executes turnkey projects (work
pertaining to substations and laying of high- and low-tension
transmission lines) for state electricity boards, refineries,
airports, and railways, and civil work contracts involving
construction of buildings. The company undertakes only those
projects that are funded by state or central governments. T&T's
operations are concentrated in North East India.
T&T reported a provisional profit after tax (PAT) of INR23.5
million on net sales of INR847 million for 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR17.9
million on net sales of INR822 million for 2009-10.
TRANSSTROY (INDIA): CRISIL Cuts Rating on INR1.24BB Loan to 'BB+'
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Transstroy (India) Ltd to 'CRISIL BB+/Negative/CRISIL A4+' from
'CRISIL BBB/Stable/CRISIL A3+'.
Facilities Ratings
---------- -------
INR1239.3 Million Long-Term Loan CRISIL BB+/Negative
(Downgraded from
'CRISIL BBB/Stable')
INR1880.0 Million Cash Credit CRISIL BB+/Negative
(Downgraded from
'CRISIL BBB/Stable')
INR600.0 Million Short-Term Loan CRISIL A4+
(Downgraded from
'CRISIL A3+')
INR1018.0 Million Letter of Credit CRISIL A4+
(Downgraded from
'CRISIL A3+')
INR8172.0 Million Bank Guarantee CRISIL A4+
(Downgraded from
'CRISIL A3+')
The downgrade reflects CRISIL's belief that TIL's financial risk
profile will be under pressure because of TIL's significant
funding commitment towards its special-purpose vehicles (SPVs)
that are undertaking its road projects on build-operate-transfer
(BOT) basis, and its incremental working capital requirements.
The total funding commitment towards the six BOT road projects is
estimated at INR6.24 billion (being TIL's 74% share) and CRISIL
believes that TIL will have to raise equity capital in a timely
manner for meeting its funding commitment. In the interim, TIL is
expected to depend on bank borrowings with shorter maturities;
hence, it will remain vulnerable to risk of cash flow mismatches.
The ratings continue to reflect TIL's sizeable order book, which
gives it high revenue visibility, sound execution capabilities,
and healthy operating margin. These rating strengths are
partially offset by TIL's exposure to risks associated with its
increasing exposure to BOT projects and its working-capital-
intensive operations.
For arriving at the ratings, CRISIL has moderately combined the
financial risk profile of TIL with TIL's SPVs. In line with this
approach, CRISIL has factored in only the equity and cost overrun
support from TIL to the SPVs.
Outlook: Negative
CRISIL believes that TIL's financial risk profile will remain
under pressure because of significant funding commitment towards
BOT projects and incremental working capital requirements over
the medium term. The ratings may be downgraded in case TIL
generates less-than-expected operating cash flows or delays in
infusion of equity capital, leading to further pressure on its
liquidity. Conversely, the outlook may be revised to 'Stable' in
case of timely infusion of equity capital and prudent funding of
working capital.
About Transstroy (India)
TIL was established in 2001 by Mrs. Leela Kumari. The day-to-day
activities of the company are managed by Mr. Sridhar Cherukuri,
its managing director. The company undertakes engineering-
procurement-construction (EPC) works for roads, irrigation, power
plants, and civil construction segments. TIL principally operates
in two business segments, construction (undertaken by TIL) and
developer business segment (through SPVs). TIL has bagged six BOT
road projects in joint venture (JV) with OJSC Corporation
Transtroy, Russia (74:26 JV), at a combined project cost of
INR31.8 billion, and one gas-based power project of INR15
billion. As on June 30, 2011, TIL had an unexecuted order book of
INR56.7 billion, including INR28 billion of its own BOT projects.
TIL, on a provisional basis, reported a profit after tax (PAT) of
INR1.14 billion on net sales of INR15.28 billion for 2010-11,
against a PAT of INR875 million on revenues of INR10.16 billion
for the previous year.
TWENTY FIRST: CRISIL Assigns 'CRISIL BB' Rating on INR110MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of Twenty First Century Pharmaceuticals Pvt
Ltd.
Facilities Ratings
---------- -------
INR110 Million Term Loan CRISIL BB/Stable (Assigned)
INR90 Million Cash Credit CRISIL BB/Stable (Assigned)
INR15 Million Letter of Credit CRISIL A4+ (Assigned)
INR11.9 Million Short-Term Loan CRISIL A4+ (Assigned)
The ratings reflect the extensive experience of TFCP's promoters
in the pharmaceutical industry and their established customer
relationships. This rating strength is partially offset by TFCP's
small scale of operations, and below-average financial risk
profile, driven by large working capital requirements and debt-
funded capital expenditure (capex) programme.
Outlook: Stable
CRISIL believes that TFCP will benefit from its established
customer relationships and the extensive experience of its
promoters in the pharmaceutical industry. The outlook may be
revised to 'Positive' in case of significant improvement in the
company's financial risk profile on the back of better-than-
expected cash accruals and efficient working capital management.
Conversely, the outlook may be revised to 'Negative' if the
company undertakes any larger-than-expected, debt-funded capex
programme or reports a low operating margin, thereby causing its
financial risk profile to deteriorate.
About Twenty First
TFCP, set up in 1986 by Mr. V S Raghunathan, undertakes contract
manufacturing for major pharmaceutical companies such as Glenmark
Pharmaceuticals Ltd, Torrent Pharmaceuticals Ltd, and Blue Cross
Laboratories Ltd etc. The amoxicillin and cephalosporin
formulations manufactured by the company are used as antibiotics
against different viral and bacterial infections. The company has
two GMP certified formulation manufacturing units - one at
Chennai and another newly set up unit at Roorkee (Uttarakhand).
The company has also leased a unit at Chennai which is used for
manufacturing neutraceuticals. The company derives around 85% of
its revenues from formulations business, while the remaining is
derived from neutraceuticals.
TFCP is expected to report a profit after tax (PAT) of INR10.6
million on net sales of INR367.3 million for 2010-11 (refers to
financial year, April 1 to March 31), as against a PAT of INR19.7
million on net sales of INR292.7 million for 2009-10.
UNIMAX CHEMICALS: CRISIL Rates INR45MM Proposed Loan at CRISIL B+
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Unimax Chemicals Pvt Ltd.
Facilities Ratings
---------- -------
INR15 Million Cash Credit CRISIL B+/Stable (Assigned)
INR45 Million Proposed LT CRISIL B+/Stable (Assigned)
Bank Loan Facility
INR35 Million Packing Credit CRISIL B+/Stable (Assigned)
INR75 Million Letter of Credit CRISIL A4 (Assigned)
The ratings reflect UCPL's weak financial risk profile, marked by
high gearing and weak debt protection metrics, exposure to risk
related to product concentration. These rating weaknesses are
partially offset by the extensive experience of UCPL's promoter
in manufacturing bulk drugs and its established customer
relationships.
Outlook: Stable
CRISIL believes that UCPL will benefit over the medium term from
its promoter's extensive industry experience. The outlook may be
revised to 'Positive' if UCPL demonstrates significant and
sustained improvement in its operating revenues and accruals,
while improving its capital structure, working capital
management, and debt protection metrics. Conversely, the outlook
may be revised to 'Negative' in case of reduction in offtake from
its customers, or if the company's financial risk profile
deteriorates due to any large debt-funded capital expenditure
programme.
About Unimax Chemicals
Incorporated in 1990 by Mr. Suresh Shah, UCPL manufactures bulk
drugs; since its inception, the major proportion of the company's
revenues is derived from manufacturing erythromycin. UCPL's
manufacturing unit is located in Boisar (Maharashtra) with an
installed capacity of 12 tonnes per month. The company currently
sells its products in both the domestic and export markets. Its
major customers in the export market include Ercros
International, Spain, and Teva India Ltd, India. In the domestic
market, UCPL supplies drugs to Cipla Ltd, Lupin Ltd, and Indoco
Remedies Ltd.
UCPL reported a profit after tax (PAT) of INR7.2 million on net
sales of INR335.0 million for 2010-11 on provisional basis
(refers to financial year, April 1 to March 31), as against a PAT
of INR4.2 million on net sales of INR220.0 million for 2009-10.
=========
J A P A N
=========
AGURA BOKUJO: Total Debts Reach JPY433.08 Billion
-------------------------------------------------
Kyodo News, citing a research institute statement on Monday,
reports that the debts of Agura Bokujo, operator of a cattle
ranch north of Tokyo that filed for bankruptcy protection last
week, amount to JPY433.08 billion, making its failure the biggest
bankruptcy case filed this year in Japan.
According to the news agency, Agura has partially blamed the
nuclear crisis at Tokyo Electric Power Co.'s power plant in
Fukushima Prefecture, triggered by the March 11 earthquake and
tsunami, for its financial plight, which it said worsened due to
falling beef prices after radioactive cesium was found in cows
raised at farms close to the plant.
Kyodo relates that Agura's debt total topped that of
biotechnology company Hayashibara Co., which filed for bankruptcy
protection on Feb. 2 with debts of JPY132.2 billion, according to
Tokyo Shoko Research Co. which said it obtained Agura's court
protection application submitted to the Tokyo District Court.
The total shows an upsurge from the debts of JPY61.99 billion
which Agura said it had when it closed its books for fiscal year
2010 through March 31, Kyodo states.
The research institute said that of the total, Agura owes a
combined JPY420.76 billion to 73,356 individual investors,
according to Kyodo.
The company plans to hold explanatory meetings for creditors in
Kobe today, Aug. 17, and in Tokyo on Friday, Aug. 19.
Established in 1979, Agura Bokujo runs about 370 farms in Japan
mostly through franchising, where some 145,000 cattle are being
raised.
INCUBATOR BANK: Aeon Bank May Win Bid to Acquire Bank
-----------------------------------------------------
According to Bloomberg News, the Asahi newspaper reported that
Aeon Bank may win a bid to buy Incubator Bank of Japan, beating a
group led by investment fund GCM.
Bloomberg relates that Asahi said Deposit Insurance Corp., which
is overseeing the sale, plans to select a buyer in September.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 13, 2010, the Incubator Bank of Japan Ltd. filed for
bankruptcy proceedings with the Financial Services Agency under
the Deposit Insurance Law. The FSA is expected to invoke the
deposit protection scheme for the first time since it was
instituted in 1971. The protection covers up to JPY10 million
in deposits and interest. The bank had about JPY592.7 billion in
deposits as of March 31, 2010, of which JPY68.6 billion had been
deposited in excess of the JPY10 million threshold by some 4,800
depositors.
Incubator Bank of Japan Ltd. is a Tokyo-based small business
lender.
JLOC XXXIII: S&P Lowers Rating on Class D Trust Certs. to CC(sf)
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CC (sf)' from 'CCC
(sf)' its rating on the class D trust certificates issued under
the JLOC XXXIII Trust Certificate transaction, and has affirmed
its ratings on the class B, C, and X trust certificates issued
under the same transaction. The class A trust certificates were
fully redeemed on the trust distribution date in October 2010.
Of the five nonrecourse loans and five specified bonds that
initially backed the trust certificates, three specified bonds
and one loan remain. Collection for one of the remaining
specified bonds (the specified bond originally represented 14.2%
of the total initial issuance amount of the trust certificates)
has been completed. However, because the collected amount was
less than the principal on the specified bond, the principal on
the specified bond was impaired. "We lowered our rating on class
D because we have confirmed that class D has incurred an
effective loss," S&P said.
"By September 2010, we had lowered our assumptions with respect
to the likely collection amount from the properties backing two
other remaining specified bonds (two specified bonds other than
the one mentioned above) and the remaining loan (the two
specified bonds and the loan originally represented about 5.7%,
about 6.5%, and about 14.5% of the total initial issuance amount
of the trust certificates). At that time, we estimated the values
of the properties backing each of the two specified bonds and the
loan to be about 70%, about 75%, and about 69% of our initial
underwriting values. This time, we have again lowered our
assumptions with regard to the values of the properties backing
the two specified bonds (the two specified bonds originally
represented about 5.7%, and about 6.5% of the total initial
issuance amount of the trust certificates) to about 60% and about
53% of our respective initial underwriting values after
considering the liquidation plan as well as the progress of sales
activities with respect to the related collateral properties.
Nevertheless, because the liquidation of the transaction's
underlying properties has progressed overall and the collected
proceeds are used to redeem the trust certificates in sequential
order (starting from the upper-level tranches), credit support
provided by the lower-level tranches to the upper-level tranches
has increased. Accordingly, we affirmed our ratings on classes B
and C," S&P related.
"In addition, we did not raise our rating on class B today
because, although the loan-to-value ratio has declined, we see a
risk that collection for the two other remaining specified bonds
and the remaining loan might not be completed by the
transaction's legal final maturity date, which is less than two
years away. Indeed, the completion of collection will depend on
the progress of the liquidation of the related collateral
properties," S&P said.
"We continue to see the liquidation plan of the properties
backing the transaction's remaining specified bonds and loan, and
the progress of such liquidation, as key factors in the
transaction's credit quality," S&P related.
JLOC XXXIII is a multiborrower commercial mortgage-backed
securities (CMBS) transaction. The trust certificates were
originally secured by five nonrecourse loans and five specified
bonds. The loans and specified bonds were initially backed by a
total of 110 real estate properties and real estate beneficial
interests owned by nine obligors. The transaction was arranged by
Morgan Stanley Japan Securities Co. Ltd., and ORIX Asset
Management & Loan Services Corp. acts as the servicer for this
transaction.
"The ratings reflect our opinion on the likelihood of the full
payment of interest and ultimate repayment of principal by the
transaction's legal final maturity date in July 2013 for the
class B to D certificates, and the timely payment of available
interest for the interest-only class X certificates," S&P added.
Rating Lowered
JLOC XXXIII
JPY67.8 billion trust certificates due July 2013
issued on Nov. 16, 2006
Class To From Initial issue amount
D CC (sf) CCC (sf) JPY7.5 bil.
Ratings Affirmed
Class Rating Initial issue amount
B AA (sf) JPY8.6 bil.
C B- (sf) JPY8.0 bil.
X AAA (sf) JPY67.8 bil.*
*Initial notional principal
Class A has been fully redeemed.
TRUST FONTANA: Moody's Assigns '(P)Ba2' to Class D Certificates
---------------------------------------------------------------
Moody's Japan K.K. has assigned provisional ratings to Trust
Fontana, totaling JPY58.32 billion, backed by residential
mortgage loans.
The ratings address the expected loss posed to investors by the
legal final maturity date. The structure allows for timely
payments of dividend (in scheduled amounts, on scheduled payment
dates) and ultimate repayment of principal by the legal final
maturity date for the Class A1 and A2 Trust Certificates. It also
allows for the full payment of dividend and ultimate repayment of
principal by the legal final maturity date for the Class B
through D Trust Certificates.
Moody's issues provisional ratings in advance of the final sale
of the securities. These ratings, however, only represent Moody's
preliminary credit opinions. Upon a conclusive review of the
transaction and associated documentation, Moody's will endeavor
to assign definitive ratings to the Trust Certificates.
Definitive ratings may differ from provisional ratings. The
provisional ratings are based on the information received as of
August 11, 2011.
The complete rating actions are:
Transaction Name: Trust Fontana
Class, Scheduled Issue Amount, Scheduled Dividend Rate, Payment
Frequency, Rating
Class A1 Trust Certificates, JPY 31.2 billion, Fixed, Monthly,
(P)Aaa (sf)
Class A2 Trust Certificates, JPY 24.0 billion, Fixed, Monthly,
(P)Aaa (sf)
Class B Trust Certificates, JPY 1.92 billion, Fixed, Monthly,
(P)Aa2 (sf)
Class C Trust Certificates, JPY 0.48 billion, Fixed, Monthly,
(P)A2 (sf)
Class D Trust Certificates, JPY 0.72 billion, Fixed, Monthly,
(P)Ba2 (sf)
Credit Enhancement: The senior/subordinated structure and excess
spreads available.
Subordination:
Class A1: Approx. 48.0%
Class A2: Approx. 8.0%
Class B: Approx. 4.8%
Class C: Approx. 4.0%
Class D: Approx. 2.8%
* The formula used to calculate the Subordination in place for
this transaction is:
Subordination = A/B, where A equals the total principal amount
of the Trust Certificates subordinated to the subject Trust
Certificates and B equals the initial outstanding balance of
the residential mortgage loan pool.
Scheduled Entrustment Date: September 12, 2011
Scheduled Trust Amendment Date: September 20, 2011
Scheduled Closing Date: September 20, 2011
Final Maturity Date: March 31, 2048
Underlying Asset: Residential mortgage loans
Special Servicer: MU Frontier Servicer Co., Ltd ("MU Frontier
Servicer")
Back-up Servicer: MU Frontier Servicer
Asset Trustee: The Sumitomo Trust and Banking Co. Ltd. ("Sumitomo
Trust Bank")
Arranger: Sumitomo Trust Bank
Rating Rationale
The obligors consist mainly of salaried workers and civil
servants, both with fairly high income. The weighted average
loan-to-value and debt-to-income ratio are relatively low.
Having analyzed both the obligors' attributes and the
originator's historical performance, Moody's estimates a
cumulative gross loss rate of 2.2% in the pool. Given the
transaction structure, Moody's believes that the credit
enhancement for each of the Class A1 Trust Certificates through
the Class D Trust Certificates is sufficient to assign the
individual ratings for each transaction.
The Seller (Originator/Servicer) will entrust a pool of its
residential mortgage loans, all related rights and cash to the
Asset Trustee for the purpose of the sale of its residential
mortgage loans and all related rights. In turn, the Seller will
receive the Residential Mortgage-Backed Trust Certificates and
the Reserve Trust Certificates.
The Seller will sell the Residential Mortgage-Backed Trust
Certificates to the initial investor and retain the Reserve Trust
Certificates.
On the initial investor's requests, the Residential Mortgage-
Backed Trust Certificates held by the initial investor will be
changed to Class A1 and A2 Trust Certificates ("the Senior Trust
Certificates"), Class B through D Trust Certificates ("the
Mezzanine Trust Certificates") and the Subordinated Trust
Certificates based on the trust amendment agreement entered into
between the Seller and the Asset Trustee on the Trust Amendment
Date.
The initial investor will sell the Senior Trust Certificates to
the investors and retain the Mezzanine Trust and Subordinated
Trust Certificates.
Entrustment of the residential mortgage loans will be perfected
against third parties via registration pursuant to the Perfection
Law. Notification of entrustment to the obligors of the
receivables will not be made unless certain events occur.
The Seller has established first security interests (mortgages)
on the collateral properties. The Asset Trustee will hold the
security interests in accordance with the entrustment of the
loans. Transfer of the ownership of the security interests will
be perfected by registration only when certain events occur.
The transfer of the Residential Mortgage-Backed Trust
Certificates and the Senior Trust Certificates will be perfected
against relevant obligors and third parties under Article 94 of
Japan's Trust Law.
The Seller will act as Servicer, under the Servicing Agreement
with the Asset Trustee. MU Frontier Servicer will be appointed as
the Special Servicer as well as the Back-up Servicer which can
take over actual servicing operations.
Principal redemption will be made in a sequential manner from
Class A1 Trust Certificates through Class D Trust Certificates.
Interest collections (after paying expenses and dividends) will
be transferred to the Principal Account up to the aggregate
amount of the outstanding balance of defaulted loans and modified
loans (under the Act concerning Temporary Measures to Facilitate
Financing for SMEs, etc.) -- excluding the aggregate amount of
these loans which are repurchased by the Seller (defaulted
trapping mechanism).
If any dividend suspension events occur, the dividends waterfall
to the appropriate Mezzanine and Subordinated Trust Certificates
will be suspended until the Trust Certificates senior to the
subjected Trust Certificates are fully redeemed. Key dividend
suspension events include the accumulated default amount
exceeding the trigger threshold with respect to each of the
Mezzanine and Subordinated Trust Certificates.
If any early amortization events occur, the dividends waterfall
to the Subordinated Trust Certificates will be suspended and the
excess spread will be used to redeem the Senior Trust
Certificates and the Mezzanine Trust Certificates. Key early
amortization events include a servicer replacement event.
In preparation for servicer replacement, liquidity will be
provided in the front of a cash reserve at closing. This reserve
will cover the dividend payments of the Senior Trust Certificates
and the Mezzanine Trust Certificates as well as trust fees,
servicing fees, and so forth. Set-up fees for a Back-up Servicer
and cash reserves for set-off and commingling risk will also be
funded at the closing.
Moody's conducted an on-site review of the Seller
(Originator/Servicer), focusing on its business franchise as
Originator and its underwriting criteria. Moody's also reviewed
the Seller's operations as servicer and considers it sufficiently
capable of servicing the pool.
Moody's conducted an on-site review with MU Frontier Servicer
(Special Servicer/Back-up Servicer), focusing on its servicing of
healthy loans as well as defaulted loans. Moody's believes MU
Frontier Servicer also has sufficient capabilities to be the
Special Servicer and the Back-up Servicer.
The principal methodology used in this rating was "Updated:
Moody's Approach to Rating RMBS Transactions in Japan" published
on September 30, 2010, and available on www.moodys.co.jp.
Moody's did not receive or take into account a third-party due
diligence report on the underlying assets or financial
instruments in this transaction.
The V Score for this transaction indicates "Low/Medium"
uncertainty about critical assumptions, in line with the
Low/Medium score for the Japanese RMBS (Conforming) sector.
The V Score reflects: The quality of historical data, disclosure
of information for analysis and the characteristics of the
transaction.
Compared to the typical RMBS, the transaction features a short
data history. However, Moody's may supplement Moody's analysis by
referring to the performance of the historical data as well as by
monitoring the data on existing securitization transactions
backed by residential mortgage receivables in the Japanese RMBS
(Conforming) sector. The detailed, loan level characteristic data
is provided.
Though the Originator don't retain the Subordinated Trust
Certificates, the initial investor, which belong to the same
industrial group as the Originator, retain it.
Moody's V Scores provide a relative assessment of the quality of
available credit information and the potential variability around
the various inputs to a rating determination.
The V Score ranks transactions by the potential for significant
rating changes owing to uncertainty around the assumptions due to
data quality, historical performance, the level of disclosure,
transaction complexity, the modeling and the transaction
governance that underlie the ratings. V Scores apply to the
entire transaction, not to individual tranches.
Moody's also ran sensitivity analyses for key parameters for this
transaction. For instance, if the cumulative gross loss rate of
2.2% used in determining the initial rating was changed to 3.3%
or 4.4%, the model output for the Class A1 would not change.
But the model output for the Class A2 would change from Aaa to
Aaa or to Aa1, the model output for the Class B would change from
Aa2 to Aa3 or to A1, the model output for the Class C would
change from A2 to Baa2 or to Ba1, the model output for the Class
D would change from Ba2 to B2 or to Caa2 (the "parameter
sensitivities").
Parameter Sensitivities are not intended to measure how the
rating of the security might migrate over time; rather they are
designed to provide a quantitative calculation of how the initial
rating might change if key input parameters used in the initial
rating process differed.
The analysis assumes that the deal has not aged, and does not
factor structural features such as sequential payment effect.
Parameter Sensitivities reflect only the ratings impact of each
scenario from a quantitative/model-indicated standpoint.
Qualitative factors are also taken into consideration in the
ratings process, so the actual ratings that would be assigned in
each case could vary from the information presented in the
Parameter Sensitivity analysis.
====================
N E W Z E A L A N D
====================
PGG WRIGHTSON: Bondholders Back Sale Deal With Heartland
--------------------------------------------------------
PGG Wrightson Finance has confirmed that the transaction for the
sale of its business to New Zealand Ltd was approved by PWF
investors at three investor group special meetings held on
Monday, Aug. 15, 2011.
This is part of the overall approval process which now requires
the completion of Heartland's capital raising and approval by
New Zealand Treasury for the Crown, to be finalized. The
expected date for completion for all approvals remains Aug. 31,
2011.
The voting received mostly via proxy required a 75% vote to pass
and received overwhelming 95.83% support by Bondholders, 99.03%
support by Secured Depositors, and 88.52% support by Unsecured
Depositors for the resolutions.
CEO for PWF Mark Darrow said the strong investor support is very
pleasing and mirrors that received earlier from the PGG Wrightson
shareholders.
"Based on the deal being confirmed in two weeks, the PGG
Wrightson and Heartland relationship takes on two new dimensions;
both with the signing of a Distribution agreement whereby
Heartland will provide finance to PGG Wrightson clients and PGG
Wrightson taking a NZ$10 million shareholding in Heartland.
"Heartland is passionate about the agriculture sector and we will
see a continuation and expansion of the services currently
offered by the rural finance provider under Heartland ownership,
but with greater impetus, particularly in their ability to
provide lending to more PGG Wrightson clients."
About PGG Wrightson Finance
PGG Wrightson Finance is a moderate-sized New Zealand-based
finance company specializing in rural finance. The company is a
wholly owned subsidiary of PGG Wrightson, a rural services
company based in New Zealand.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
June 20, 2011, Standard & Poor's Ratings Services placed its
'BB/B' issuer credit ratings on New Zealand nonbank financing
company PGG Wrightson Finance Ltd. on CreditWatch with positive
implications, following Heartland New Zealand Ltd's announcement
of a conditional acquisition of PWF. The CreditWatch action
reflects the potential equalization of PWF's ratings with those
on Heartland Building Society Ltd. (HBS, formerly Combined
Building Society; BBB- /Stable/A-3), should the proposed
acquisition of PWF by HBS, a key operating subsidiary of HNZ,
succeed (on or about Aug. 31, 2011).
In Standard & Poor's opinion, HBS' overall business diversity
will benefit from this acquisition, and the business and
distribution arrangement with PGG Wrightson Ltd. PGG would
provide an established platform for the Heartland New Zealand
group to grow its rural sector business. This could be
supportive to the group's business-risk profile if PWF is
effectively integrated.
SOUTH CANTERBURY: Nomura Buys NZ$123 Million Loan Book
------------------------------------------------------
BusinessDay.co.nz reports that receivers for South Canterbury
Finance have sold the failed finance firm's portfolio of
consumer, business, and rural loans to Japanese investment bank
Nomura.
The loans have a book value of NZ$123 million, but the sale price
was not disclosed, BusinessDay.co.nz says.
According to BusinessDay.co.nz, receiver William Black of
McGrathNicol said the deal was an excellent outcome and "another
important step in maximizing the return for the Crown when
combined with the other sale processes completed to date and loan
recoveries made during the receivership."
BusinessDay.co.nz notes that the portfolio represented the
balance of the "good bank" in South Canterbury's loan book after
the sale of Face Finance in May.
Jai Rajpal, Nomura's Head of Fixed Income, Asia ex-Japan, said
the loans would continue to be managed from Christchurch,
according to BusinessDay.co.nz.
"This acquisition provides Nomura with a platform from which to
lend and invest in additional opportunities in New Zealand, which
has a robust, well-managed economy," BusinessDay.co.nz quotes Mr.
Rajpal as saying.
The receivers were advised by Deutsche Bank New Zealand.
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
=================
GRIFFIN CAPITAL: Creditors' Proofs of Debt Due Sept. 12
-------------------------------------------------------
Creditors of Griffin Capital Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 12, 2011, to be included in the company's dividend
distribution.
The company's liquidators are:
Kelvin Thio
Terence Ng
c/o 146 Robinson Road #12-01
Singapore 068909
HUAT SOON: Creditors' Proofs of Debt Due Sept. 12
-------------------------------------------------
Creditors of Huat Soon Services Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 12, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Chian Yeow Hang
c/o Abacus Advisory Services Pte Ltd
6001 Beach Road
#09-09 Golden Mile Tower
Singapore 199589
KOMATSU FORKLIFT: Creditors' Proofs of Debt Due Sept. 12
--------------------------------------------------------
Creditors of Komatsu Forklift Asia Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 12, 2011, to be included in the company's dividend
distribution.
The company's liquidator is:
Choy Kin Wah
c/o 1 Gul Avenue
Singapore 629648
LEGACY VENTURES: Creditors' Proofs of Debt Due Sept. 12
-------------------------------------------------------
Creditors of Legacy Ventures Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 12, 2011, to be included in the company's dividend
distribution.
The company's liquidators are:
Chee Yoh Chuang
Abuthahir Abdul Gafoor
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
SINO-ENVIRONMENT TECHNOLOGY: Creditors' Meeting Set for Aug. 26
---------------------------------------------------------------
Sino-Environment Technology Group Limited, which is under
judicial management, will hold a meeting for its creditors on
Aug. 26, 2011, at 9:00 a.m., at Training Room 903, NTUC Centre,
at One Marina Boulevard, in Singapore 018989.
At the meeting, the creditors will be asked to consider and, if
thought fit, approve (with or without modification) the Scheme of
Compromise and Arrangement.
The company's solicitors are:
Stamford Law Corporation
10 Collyer Quay #27-00
Ocean Financial Centre
Singapore 049315
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
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 ***