/raid1/www/Hosts/bankrupt/TCRAP_Public/111010.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, October 10, 2011, Vol. 14, No. 200
Headlines
A U S T R A L I A
BOB CROSBY: No Bank Debt Amid Liquidation, Director Says
CENTRO PROPERTIES: Lawyers to Get AUD107.2MM if Merger Approved
COOROY MOUNTAIN: May Have Traded Insolvent Before Collapse
EVANS PUBLISHING: Names Scott Williams as New CEO
SMART SERIES: Fitch Puts Rating on AUD8.75-Mil. Notes at 'BB'
SMART SERIES: Moody's Assigns '(P)Ba2' Rating to Class E Notes
* AUSTRALIA: One in Five SMEs Face Insolvency Amid Tight Cashflow
C H I N A
GITI TIRE: S&P Lowers Corp. Credit Rating to B-; Outlook Negative
* CHINA: Premier Urges Financial Support For Small Businesses
H O N G K O N G
AVIVA PORTFOLIO: Members' Final General Meeting Set for Nov. 7
CDC CORP: Legal Judgment Prompts Chapter 11
COSFA HK: Commences Wind-Up Proceedings
DUNAVANT ASIA: Members' Final General Meeting Set for Nov. 11
EMERGING SOVEREIGN: Commences Wind-Up Proceedings
FAIR RACE: Commences Wind-Up Proceedings
GOOD SMART: Creditors' Proofs of Debt Due Nov. 30
GOSPEL PREACHING: Suen Siu Ying Steps Down as Liquidator
HELLENIC TRADE: Placed Under Voluntary Wind-Up Proceedings
HK LOGISTICS: Creditors' Proofs of Debt Due Nov. 8
HK SUPPLY: Creditors' Proofs of Debt Due Nov. 8
POLYSOURCE WORLDWIDE: Court to Hear Wind-Up Petition on Nov. 16
QQ CLUB: Court Enters Wind-Up Order
RISING PROFIT: Court to Hear Wind-Up Petition on Nov. 9
SHINWA MAX: Creditors' Proofs of Debt Due Oct. 17
SHUN QUN: Lo and Leung Appointed as Liquidators
SOLARITE ENTERPRISES: Court Enters Wind-Up Order
STRATEGIC FINANCIAL: Court Enters Wind-Up Order
TE FA: Court Enters Wind-Up Order
TSIEN WUI: Contributories and Creditors to Meet on Oct. 21
WELL GAIN: Lo and Leung Appointed as Liquidators
W.H. MANDOLYN: Court Enters Wind-Up Order
I N D I A
AMBA METALS: CRISIL Upgrades Rating on INR20MM Loan to 'CRISIL B'
ANIL KUMAR: CRISIL Places 'CRISIL BB+' Rating on INR40MM Loan
ANIL SPECIAL: ICRA Reaffirms [ICRA]BB+ Rating on INR55cr Facility
A P ENTERPRISES: CRISIL Rates INR100MM Cash Credit at CRISIL BB-
AXIS BANK: Fitch Affirms FC Upper Tier II Bonds Ratings at 'BB-'
BALLAL DEVELOPERS: ICRA Assigns [ICRA]B+ Rating to INR12cr Loan
BELGAUM WIND: ICRA Cuts Rating on INR90cr Loan to '[ICRA] BB'
CHEM EDGE: ICRA Assigns '[ICRA]BB' Rating to INR30cr LT Rating
INTELL EDUCATIONAL: ICRA Places '[ICRA]BB' Rating to INR9cr Loan
KONARK FOUNDATIONS: ICRA Rates INR7.5cr LT Loan at '[ICRA]BB-'
KOX MED: ICRA Reaffirms '[ICRA]BB+' Rating to INR6cr Bank Loan
LAXMI CONSTRUCTION: ICRA Places [ICRA]BB Rating on INR2.5cr Loan
MADHU JEWELLERS: CRISIL Rates INR70MM Cash Credit at 'CRISIL BB-'
PRIYANKA CONSTRUCTIONS: ICRA Rates INR6cr Loan at '[ICRA]BB-'
SABOO ENGINEERS: ICRA Puts [ICRA]BB+ Rating on INR2cr Cash Credit
SAMRAT PLYWOOD: ICRA Reaffirms [ICRA]BB- Rating on INR19.9cr Loan
SOKTAS INDIA: ICRA Reaffirms '[ICRA]BB+' INR20cr Loan LT Rating
SPADS TEXTILES: ICRA Cuts Rating on INR17.46cr Loan to '[ICRA]B+'
SRAVANTHI ENERGY: ICRA Puts [ICRA]BB- Rating to INR633.75cr Loan
VENUS REMEDIES: CRISIL Raises Rating on INR277.3MM Loan to 'BB+'
J A P A N
CAFES 2: S&P Affirms B-(sf) Rating on Class E Trust Certificates
J-CORE 16: Moody's Reviews Certs.' Rating for Possible Downgrade
KAWASAKI KISEN: S&P Puts 'BB+' Corporate Credit Rating on Watch
N E W Z E A L A N D
BRIDGECORP LTD: Ex-Director Queries Rent Payment
CRAFAR FARMS: OIO Decision on Chinese Bid Drags On
WINDFLOW TECHNOLOGY: Gets NZ$150,000 Loan From Director
T A I W A N
PROMOS TECHNOLOGIES: Creditors Fail to Agree on Interest Rate Cut
- - - - -
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A U S T R A L I A
=================
BOB CROSBY: No Bank Debt Amid Liquidation, Director Says
--------------------------------------------------------
Howard Jones at The Border Mail reports that Bob Crosby and Co
Director David Crosby said the company's liquidation last month
was due to several factors and long-established firm didn't have
any debt with the National Australia Bank.
"The debt with the NAB was cleared three or four years ago when
we sold our High Street premises," the report quotes Mr. Crosby
as saying. "We had no bank debt when we went into liquidation,
although money is owed to creditors, some past employees and the
Taxation Office. The liquidator is still finalizing those
amounts."
A file on the Australian Securities and Investments Commission
Web site mentioned the NAB charge but did not show it was no
longer relevant, according to The Border Mail.
"Several factors contributed to the company's demise and I take
full responsibility for the management decisions we made,"
Mr. Crosby said.
"The drought and bushfires started to have serious effect four
years ago, but there was also the downturn in agriculture which
has been going on for 10 years.
"We lost a major franchise, then another one and, recently, the
availability of machinery on the internet affected us."
Mr. Crosby, as cited by The Border Mail, said the firm, which
once employed 18 full-time and part-time staff, had reduced to
two employees and three family members this year.
A creditor petitioned for the firm to be placed into liquidation,
the report discloses. Sydney accountancy practice PPB Pty Ltd is
handling the liquidation.
Bob Crosby and Co. is a machinery retailer based in Wodonga,
New South Wales, Australia.
CENTRO PROPERTIES: Lawyers to Get AUD107.2MM if Merger Approved
---------------------------------------------------------------
Sarah Danckert at The Australian reports that lawyers and
financial advisers involved in the merger of Centro Retail and
Centro Properties will reap at least AUD107.2 million from the
transaction if shareholders approve the proposed restructure --
more than the total being offered to noteholders, bondholders,
and shareholders.
The Australian says the figure was revealed in the independent
expert's report, which endorsed the merger.
According to The Australian, the report also revealed details of
the plan to aggregate Centro's two listed property trusts with
satellite funds to create the AUD3 billion Centro Retail
Australia, and stop Centro Properties being forced into
administration because of debt.
The Australian notes that contingent creditor
PricewaterhouseCoopers and Centro hybrid noteholder JPMorgan
raised concerns in the NSW Supreme Court last week about the
AUD100 million set aside for junior stakeholders. On October 4,
the court found those concerns should not stop shareholders
voting on the deal in mid-November.
Grant Samuel said that if shareholders refused to back the deal
or it was not approved by the courts, those costs would fall to
AUD21.5 million, according to The Australian.
According to The Australian, Grant Samuel said Centro Retail
would incur financial and legal costs regardless of whether the
deal went through. "These costs may be more or less than those
incurred as part of aggregation," he added.
Global investment banker Moelis acted as chief financial adviser
for Centro Properties while UBS acted for Centro Retail, The
Australian notes.
Eight law firms have also been involved in the restructure, The
Australian discloses.
The Australian says the report also revealed that current Centro
Retail chairman Peter Day, and non-executive director Fraser
MacKenzie have been appointed to the board of Centro Retail
Australia, which will be chaired by Bob Edgar and include eight
members.
Current Centro chief executive Robert Tsenin will act as managing
director until a new chief executive can be found, The Australian
notes.
The Australian says that shareholders in both groups cheered the
court's decision and the independent expert's report.
The latter included a full-year 2012 earnings forecast of 15.3c
per new stapled security and distribution outlook of 6.4c per new
stapled security for the new trust, according to The Australian.
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 10, 2011, that Centro Properties said it entered into an
agreement with its senior lenders to implement its restructure
transaction together with the proposed aggregation of the
Australian assets and interests held by CNP, Centro Retail
Trust (CER) and certain Centro managed funds.
The TCR-AP, citing The Australian, reported on Aug. 30, 2011,
Centro Properties warned shareholders when handing down its full-
year results that the debt-bloated company still faces
liquidation
if does not merge with the less indebted Centro Retail Group.
Unitholders are due to vote next month on a merger of Centro
Properties Group and listed satellite Centro Retail Group to
create a listed trust owning a $4.4 billion portfolio of
Australian shopping centres, The Australian discloses.
About Centro Properties
Based in Australia, Centro Properties Group (ASX:CNP)--
http://www.centro.com.au/-- is a retail investment organization
specializing in the ownership, management and development of
retail shopping centres. Centro manages both listed and unlisted
retail property and has an extensive portfolio of shopping
centres across Australia, New Zealand and the United States.
Centro has funds under management of US$24.9 billion
COOROY MOUNTAIN: May Have Traded Insolvent Before Collapse
----------------------------------------------------------
Mark Bode at Sunshine Coast Daily reports that the group behind
Cooroy Mountain Spring Water and a host of other companies may
have traded insolvent for several months before being placed in
administration, it has emerged.
Sunshine Coast Daily relates that administrator Robert Hutson of
KordaMentha said in his report to Cooroy Mountain Group creditors
that it appeared that the group had traded insolvent since about
April.
At a second creditors meeting at Maroochydore on Oct. 6, 2011,
the report says, creditors voted unanimously to allow Mr. Hutson
more time to assess a deed-of-company/trade-on arrangement
proposed by the group's director, Greg Dinsey.
According to the report, Mr. Hutson said he would not pursue the
possibility that the group traded insolvent if creditors accepted
Mr. Dinsey's proposal.
If accepted, the trade-on arrangement would guarantee creditors a
slice of future profits, although Mr. Hutson said its exact
details were yet to be confirmed, Sunshine Coast Daily relays.
"I think the (creditors) report is more along the lines that
there's, I guess, a potential claim for insolvent trading, rather
than anything conclusive," the report quotes Mr. Hutson as
saying.
"Normally I wouldn't conclude that position unless the company
went into liquidation."
Mr. Hutson, as cited by Sunshine Coast Daily, said it was
possible the Australian Securities and Investments Commission
would initiate a legal action against Mr. Dinsey if it determined
there was enough evidence the group traded insolvent, but that
was unlikely. Such an action would follow the launch of
liquidation proceedings, he said.
The report notes that the administrator revealed there had been a
number of offers for all or some of the group's assets, but that
those had to be confirmed.
Mr. Hutson said he could not reveal the total amount owed to
creditors at this stage because some claims were still emerging,
the report adds.
Cooroy Mountain Group and four of its companies, including Cooroy
Mountain Spring Water, were placed in administration early in
September 2011.
Cooroy Mountain Group employed between 70 and 100 staff, and has
operated from Cooroy Mountain since 1991, which also includes
Wimmers Soft Drink and Cooroy Mountain Transport.
EVANS PUBLISHING: Names Scott Williams as New CEO
-------------------------------------------------
ABC New England North West reports that Scott Williams, the co-
founder of a clearing house for international flower orders, has
been named the new chief executive officer of newspaper group
Evans Publishing.
In August, the company was placed in voluntary administration,
with debts of more than AUD3 million.
Under a deed of company arrangement approved by creditors last
month, the company was allowed to continue trading but only if a
new company chief was appointed.
According to the report, Mr. Williams said he wants to expand the
business to give more local communities exposure to the balanced
voice of an independent newspaper.
The company's former CEO, Brad Evans, stays on the payroll,
becoming the group's sales and marketing manager, the report
relays.
Evans Publishing Pty Ltd is an Australian-based independent
publishing company. The company publishes the Armidale
Independent, Port Macquarie Independent, Tamworth City News,
Southern Free Times and Tweed Coast Weekly.
SMART SERIES: Fitch Puts Rating on AUD8.75-Mil. Notes at 'BB'
-------------------------------------------------------------
Fitch Ratings has assigned SMART Series 2011-3 Trust notes
expected ratings. The transaction is an asset-backed
securitization backed by automotive and equipment lease
receivables originated by Macquarie Leasing Pty Limited.
-- AUD56.00MM Class A-1 notes: 'F1+(EXP)sf
-- AUD252.00MM equivalent Class A-2 (A & G) AUD & GBP notes:
'AAA(EXP)sf'; Outlook Stable
-- AUD7.875MM Class B notes: 'AA(EXP)sf'; Outlook Stable
-- AUD9.625MM Class C notes: 'A(EXP)sf'; Outlook Stable
-- AUD8.750MM Class D notes: 'BBB(EXP)sf'; Outlook Stable
-- AUD8.750MM Class E notes: 'BB(EXP)sf'; Outlook Stable
-- AUD7.000MM seller notes: not rated
The notes will be issued by Perpetual Trustee Company Limited as
trustee for SMART Series 2011-3 Trust. SMART Series 2011-3 Trust
is a legally distinct trust established pursuant to a master
trust and security trust deed.
"SMART Series 2011-3 Trust marks Macquarie Leasing's first
transaction to be issued in the UK market." said Ben Newey,
Director in Fitch's Structured Finance team. "Lease receivables
originated by Macquarie Leasing have continued to perform
strongly with the 30+days arrears, tracking well below 1.0%."
At the cut-off date, the Macquarie Leasing's representative
collateral portfolio consisted of 9,529 automotive and equipment
lease receivables totaling approximately AUD346.5 million, with
an average size of AUD36,363 and a weighted average seasoning of
5.8 months. The pool consists of motor vehicles and equipment
lease receivables originated by Macquarie Leasing to Australian
residents across the country. The pool comprises amortizing
principal and interest leases with varying balloon amounts
payable at maturity. The weighted average balloon payment for
the portfolio is 24.7% (as a percentage of original balance).
The majority of leases consist of novated contracts (52.8%),
where the lease is novated to the employer in salary package
arrangements.
Historical gross loss rates by quarterly vintage on passenger
vehicle leases originated by Macquarie Leasing were found to have
ranged between 0.6% and 1.5%, from 0.5% to 5% for light
commercial and from 1% to 4.8% for equipment.
The expected Short-Term 'F1+(EXP)sf' rating assigned to the Class
A-1 notes and the expected Long-Term 'AAA(EXP)sf' rating with
Stable Outlook assigned to the Class A-2A, and A-2G notes, are
based on: the quality of the collateral; the 12% credit
enhancement provided by the subordinate Class B, C, D and E notes
and the unrated seller notes and excess spread; the liquidity
reserve account sized at 1% of the aggregate invested amount of
the notes at closing; the interest rate swap arrangements the
trustee has entered into with Macquarie Bank Ltd
('A+'/Stable/'F1'); the currency swap provided by Australia and
New Zealand Banking Group Limited ('AA-'/Positive/'F1+'); and
Macquarie Leasing Pty Ltd's lease underwriting and servicing
capabilities.
The expected ratings assigned to the other classes of notes are
based on all the strengths supporting the Class A notes,
excluding their credit enhancement levels, but including the
credit enhancement provided by each class of notes' respective
subordinate notes.
The final ratings are contingent on receipt of final documents
conforming to information already received.
SMART SERIES: Moody's Assigns '(P)Ba2' Rating to Class E Notes
--------------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
notes issued by Perpetual Trustee Company Limited in its capacity
as trustee of the SMART Series 2011-3 Trust.
Issuer: SMART Series 2011-3 Trust
-- AUD56.000 million Class A-1 Notes, Assigned (P)P-1 (sf);
-- AUD[ ]* million Class A-2A Notes, Assigned (P)Aaa (sf);
-- GBP[ ]* million Class A-2G Notes, Assigned (P)Aaa (sf);
-- AUD7.875 million Class B Notes, Assigned (P)Aa3 (sf);
-- AUD9.625 million Class C Notes, Assigned (P)A3 (sf);
-- AUD8.750 million Class D Notes, Assigned (P)Baa3 (sf);
-- AUD8.750 million Class E Notes, Assigned (P)Ba2 (sf).
The AUD 7.000 million Seller Notes are not rated by Moody's.
* The Class A-2A and Class A-2G Notes will equal
AUD252 Million equivalent aggregate.
The transaction is a securitisation of a portfolio of Australian
novated leases, commercial hire purchase agreements, chattel
mortgages and finance leases secured by motor vehicles and
commercial equipment, originated by Macquarie Leasing Pty
Limited.
"This is the third ABS transaction for Macquarie Leasing so far
this year. After three previous successful visits to the US
market in 2010 and 2011, they are again targeting offshore
markets but this time by issuing GBP denominated Class A-2G
Notes", says Treasa Boyle, Moody's lead analyst for the
transaction.
Ratings Rationale
SMART Series 2011-3 Trust is broadly similar to structures seen
in previous domestic SMART transactions sponsored by Macquarie,
and closely follows the structure seen in SMART Series 2010-2
Trust. However, it differs in that this transaction is not solely
AUD denominated as it will issue GBP denominated Class A2-G
Notes. Notable features of the transaction include the
conservative composition of the receivables pool backing the
transaction and the pro-rata principal repayment profile.
The pool includes a relatively high percentage of novated leases
(52.75%). Moody's considers novated leases to have a lower level
of risk than other contract types and this is a positive feature
of the transaction. Similar to past domestic SMART and other
Australian ABS transactions, the deal includes a small percentage
of non-motor-vehicle equipment types (9.45%). In Moody's opinion,
motor vehicles exhibit less pro-cyclical default patterns and, on
average, higher recovery rates. As a result, Moody's views the
SMART 2011-3 Trust pool as conservatively structured.
In order to fund the purchase price of the portfolio, the Trust
will issue up to eight classes of notes. The notes will be repaid
on a sequential basis in the initial stages (until the
subordination percentage increases from the initial 12.0% to
19.9%) and during the tail end of the transaction. At all other
times, the structure will follow a pro rata repayment profile.
This principal paydown structure is comparable to other
structures in the Australian ABS market in recent years.
The deal will include two senior tranches. The Class A-1 Notes
are fast-pay money-market notes, rated P-1. The Class A-2 notes
will be split between AUD denominated Class A-2A Notes and GBP
denominated Class A2-G Notes. The Class A Notes will be repaid
sequentially within the Class A Note allocation, however within
the Class A-2 Notes, Class A-2A Notes and Class A-2G Notes will
be paid on a pari passu basis. The ratings are based on the
credit enhancement provided by the subordinated notes equal to
12% for the Class A Notes.
An unusual feature of the transaction is that the maturity dates
of the Class A-1 Notes were set not with reference to the
maturity of the longest dated receivable but rather with
reference to the scheduled principal amortisation profile (with a
certain buffer to allow for defaults and delinquencies). Moody's
has accounted for the possibility of losses and delinquencies
during the term of the Class A-1 Notes in its assessment of the
likelihood of their repayment and believes scheduled principal
amortisation to be sufficient to repay the Class A-1 Notes by the
maturity dates in full.
Moody's base case assumptions are a default rate of 2.00% and a
recovery rate of 38.00%. These imply a expected (net) loss of
1.24%. Both the default rate and the recovery rate have been
stressed relative to observed historical levels of 1.48% and 50-
55% respectively.
The ratings address the expected loss posed to investors by the
legal final maturity. The structure allows for timely payment of
interest and ultimate payment of principal by the legal final
maturity.
Volatility Assumption Scores and Parameter Sensitivities
The V Score for this transaction is Low/Medium, which is in line
with the score assigned for the Australian ABS sector. Among
other factors, Moody's notes the availability of a substantial
amount of historical performance data in the Australian ABS
market as well as on an issuer-by-issuer basis. Here, for
instance, Moody's has been provided with detailed vintage and
individual default data for the 1998-2011 period. In addition,
Moody's observes that Australian auto ABS, and specifically past
SMART transactions, have to date been performing stably. This
allows Moody's to have a material degree of comfort with regard
to assumptions made in rating the SMART Series 2011-3 Trust.
V Scores are a relative assessment of the quality of available
credit information and of the degree of uncertainty around
various assumptions used in determining the rating. High
variability in key assumptions could expose a rating to more
likelihood of rating changes. The V Score has been assigned
accordingly to the report "V Scores and Parameter Sensitivities
in the Asia/Pacific RMBS Sector", published in March 2009.
Parameter Sensitivities are designed to provide a quantitative
calculation of how the initial rating might change if key input
parameters used in the initial rating process - here, the
expected loss and the Aaa credit enhancement - differed. The
analysis assumes that the deal has not aged. Parameter
Sensitivities only reflect the ratings impact of each scenario
from a quantitative/model-indicated standpoint.
In the case of SMART Series 2011-3 Trust, the Class A Notes
remain strongly investment grade i.e. A3 under the most severe
stress assumptions under which the default rate rises to 3.50%
(from Moody's assumption of 2.00%) and the recovery rate
decreases to 20% (from Moody's assumption of 38.0%). Similarly,
high investment grade ratings are maintained when the base
recovery rate is stressed from the assumed 38% to 20% (holding
other factors, including the assumed default rate of 2.00%
constant).
Rating Methodology
The principal methodology used in this rating was "Moody's
Approach to Rating Australian Asset-Backed Securities", published
in July 2009.
* AUSTRALIA: One in Five SMEs Face Insolvency Amid Tight Cashflow
-----------------------------------------------------------------
Claire Heaney at Herald Sun reports that a survey conducted by
Bibby Financial Services revealed that one in five small
businesses said they would become insolvent if they lost as few
as two of their major clients.
These businesses also said having to pay cash on delivery to
suppliers would make it harder for them to carry on, the Herald
Sun relates. According to the report, 43% polled by Bibby
Financial Services said they would be forced to downsize if they
lost clients or their payment terms altered.
It is the latest in the gloomy picture for small businesses,
particularly those in retail.
Other research out last week forecast dismal Christmas shopping,
saying there would be little festive season recruitment, the
Herald Sun relays.
According to Herald Sun, Bibby Financial Services managing
director Greg Charlwood said the findings, which coincided with
the Federal Government's Tax Forum, pointed to a need for tax
breaks for the sector.
Mr. Charlwood, as cited by Herald Sun, said small businesses were
under greater pressure than a year ago.
"Our Bibby barometer survey of small business proprietors showed
they are under higher stress and have a more uncertain cash flow
than a year ago," the report quotes Mr. Charlwood as saying.
"They face longer delays being paid and are coping with more
difficult market conditions, staffing issues and access to
finance."
Mr. Charlwood said only a quarter of businesses were confident
that they could manage with tightening cashflow, the report adds.
=========
C H I N A
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GITI TIRE: S&P Lowers Corp. Credit Rating to B-; Outlook Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on China-based tire manufacturer GITI Tire Pte. Ltd. to
'B-' from 'B'. The outlook is negative. "We also lowered the
Greater China scale credit rating on the company to 'cnB-' from
'cnBB-'. We removed all the ratings from CreditWatch, where they
were
placed with negative implications on June 9, 2011," S&P stated.
"We lowered the ratings on GITI because we expect the company's
liquidity to remain strained over the next 12 months. We also
believe that the covenant headroom is thin under a club loan that
GITI took out to refinance its $200 million senior secured
notes," said Standard & Poor's credit analyst Xavier Jean.
"In our view, the monthly amortization of the club loan will
require substantial cash outflows over the next six to 12 months.
The loan matures in December 2012 but can be extended to December
2014 if GITI fulfills some conditions in the facility agreement.
We also anticipate that the company's working capital
requirements will remain high over the next six to 12 months. The
company's liquidity risk is therefore likely to be high in 2012.
Further
details on the terms and conditions of the club loan are not
public," S&P stated.
"Under our base-case financial projections for 2011 and 2012, the
company has limited headroom under the leverage maintenance
covenant required under the club loan. The loan also incorporates
a maintenance covenant on interest coverage. The limited headroom
increases the sensitivity of GITI's liquidity to weakness in the
operating environment in China over the next few quarters. Raw
material prices are still higher than in 2010, despite their
recent dip, and competitive pressures are high in the Chinese
market," S&P related.
"We expect GITI's financial risk profile to stay highly leveraged
over the next 12 months. We estimate the company's cash flow
protection and leverage measures will remain largely unchanged
following the refinancing of the notes. In our base-case scenario
for 2012, we forecast an EBITDA interest coverage of about 2x and
a ratio of total debt to EBITDA (excluding profits from
associated company PT Gajah Tunggal Tbk. (B/Stable/--)) of 5.5x-
6x," S&P said.
"We expect GITI's financial performance to remain weak for the
rest of 2011 because raw material prices are likely to stay high
and growth in China's automobile production is likely to remain
soft. We also expect raw material prices to remain high in 2012,
limiting material margin improvements. In our base-case scenario,
we anticipate an EBITDA margin of 8%-9% for 2011 and 2012," S&P
said.
The rating on GITI reflects the company's highly leveraged
financial risk profile, weak liquidity, limited financial
flexibility, and high industry risk. GITI's strong market
position in China, geographic diversity, and an established
distribution capability partly offset these weaknesses.
"The negative outlook reflects our expectation that GITI's
liquidity risk will be high and the covenant headroom will remain
thin over the next 12 months. We also expect the operating
environment in China to remain difficult. We believe the tough
operating environment will likely limit upside potential in
GITI's
cash flow," said Mr. Jean.
S&P may lower the rating if:
GITI's operational performance declines materially and the
likelihood of the company breaching its club loan covenants
increases. "We estimate this could materialize if (1) GITI's
EBITDA is more than 10% lower than we expected; or (2) the
company undertakes large-scale expansion, aggressive
shareholders' capital return initiatives, or other related-
party transactions that increase debt," S&P said.
GITI's liquidity deteriorates materially, which will
substantially weaken the company's ability to service debt.
This could materialize if: (1) the company is unable to
extend
the maturity of its club loan beyond 2012; (2) its working
capital requirements are materially higher than S&P
forecasted; or
The company's linkage with PT Gajah Tunggal triggers any
material contingent liability.
"A rating upgrade is unlikely in the next 12 months because we
expect the company's financial structure to remain highly
leveraged. We also anticipate only a limited improvement in
margins due to still high raw material prices. Nevertheless, we
may revise the outlook to stable if GITI's operating performance
and cash flows increase substantially such that the liquidity
risk
is reduced. In our view, this would require a significant and
lasting decline in raw material prices or further substantial
increases in prices without jeopardizing the company's market
position. We could also revise the outlook to stable if the
maturity on the company's club loan is extended to 2014," S&P
added.
* CHINA: Premier Urges Financial Support For Small Businesses
-------------------------------------------------------------
Xinhua News Agency reports that Chinese Premier Wen Jiabao has
urged stronger financial support for China's small businesses,
as the county is currently walking a fine line between fighting
inflation and maintaining growth.
The premier said during visits to east China's economic hub of
Zhejang province last week that small enterprises should be a
priority of bank credit support and enjoy more tax preferences
from the government.
According to the news agency, the premier said banks should
increase their tolerance of the non-performing loan (NPL) ratio
of small enterprises, set targets for the proportion and growth
of loans to small companies, and reduce the small businesses'
cost of securing credit.
Xinhua notes that Mr. Wen's remarks came in light of tightening
monetary policies that have bitten into China's small businesses.
These companies create 80% of the country jobs, but have
difficulty securing bank loans, as Chinese banks prefer to lend
to larger companies, the report states.
Xiao Yuanqi, an official from the China Banking Regulatory
Commission, said late last month that outstanding loans to small
firms grew 26.6% year-on-year to hit CNY9.85 trillion (US$1.55
trillion) at the end of July, rising faster than the total
outstanding loans of Chinese banks, Xinhua reports.
But the situation remains grim, as some cash-strapped companies
have shut down and others have resorted to the private lending
market, which operates outside of the banking industry and
typically features higher interest rates, according to Xinhua.
In Zhejiang's city of Wenzhou, one-fifth of the city's 360,000
small and mid-sized businesses have stopped operating due to cash
shortages, Xinhua added citing the city's council for small and
mid-sized enterprises.
================
H O N G K O N G
================
AVIVA PORTFOLIO: Members' Final General Meeting Set for Nov. 7
--------------------------------------------------------------
Members of Aviva Portfolio Investment Services Limited will hold
their final general meeting on Nov. 7, 2011, at 10:00 a.m., at
20/F, Prince's Building, Central, in Hong Kong.
At the meeting, Rainier Hok Chung Lam, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
CDC CORP: Legal Judgment Prompts Chapter 11
-------------------------------------------
Dow Jones' DBR Small Cap reports that CDC Corp. filed for
Chapter 11 bankruptcy protection after a hedge fund investor won
a
US$65.4 million judgment against it.
Headquartered in Hong Kong, CDC Corp is a technology firm. CDC s
a global provider of enterprise software, online games, and
Internet and media services.
CDC Corporation, doing business as Chinadotcom, filed a Chapter
11 petition (Bankr. N.D. Ga. Case No. 11-79079) on Oct. 4, 2011.
James C. Cifelli, Esq., at Lamberth, Cifelli, Stokes & Stout, PA,
in Atlanta, Georgia, serves as counsel. The Debtor estimated
assets and debts at $100 million to $500 million.
COSFA HK: Commences Wind-Up Proceedings
---------------------------------------
Members of Cosfa Hong Kong Limited, on Sept. 28, 2011, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidators are:
Rainier Hok Chung Lam
Anthony David Kenneth Boswell
22nd Floor, Price's Building
Central, Hong Kong
DUNAVANT ASIA: Members' Final General Meeting Set for Nov. 11
-------------------------------------------------------------
Members of Dunavant Asia Limited will hold their final general
meeting on Nov. 11, 2011, at 10:31 a.m., at Level 28, Three
Pacific Place, 1 Queen's Road East, in Hong Kong.
At the meeting, Chan Mun Yee, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
EMERGING SOVEREIGN: Commences Wind-Up Proceedings
-------------------------------------------------
Members of Emerging Sovereign Group Hong Kong Limited, on
Sept. 27, 2011, passed a resolution to voluntarily wind up the
company's operations.
The company's liquidator is:
Philip Brendan Gilligan
7th Floor, Alexandra House
18 Chater Road
Central, Hong Kong
FAIR RACE: Commences Wind-Up Proceedings
----------------------------------------
Members of Fair Race Investment Limited, on Sept. 30, 2011,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Miao Liyan
66/F., Plaza 66
No. 1266 Nanjing Road West
Shanghai 200040
China
GOOD SMART: Creditors' Proofs of Debt Due Nov. 30
-------------------------------------------------
Creditors of Good Smart International Trading Limited, which is
in members' voluntary liquidation, are required to file their
proofs of debt by Nov. 30, 2011, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Sept. 28, 2011.
The company's liquidator is:
Wong Kit Sang
8th Floor, Tower 1
Tern Centre, 237 Queen's Road
Central, Hong Kong
GOSPEL PREACHING: Suen Siu Ying Steps Down as Liquidator
--------------------------------------------------------
Suen Siu Ying stepped down as liquidator of Gospel Preaching
Group of Oversea Chinese Christians Limited on Oct. 7, 2011.
HELLENIC TRADE: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on Sept. 23, 2011,
creditors of Hellenic Trade Services Limited resolved to
voluntarily wind up the company's operations.
The company's liquidators are:
Natalia K M Seng
Susan Y H Lo
Three Pacific Place, Level 28
1 Queen's Road East
Hong Kong
HK LOGISTICS: Creditors' Proofs of Debt Due Nov. 8
--------------------------------------------------
Creditors of Hong Kong Logistics and Supply Chain Management
Association Limited, which is in members' voluntary liquidation,
are required to file their proofs of debt by Nov. 8, 2011, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Sept. 26, 2011.
The company's liquidator is:
Yu Kwong Man
21/F., Tai Yau Building
181 Johnston Road
Wanchai, Hong Kong
HK SUPPLY: Creditors' Proofs of Debt Due Nov. 8
-----------------------------------------------
Creditors of Hong Kong Supply Chain Management Association
Limited, which is in members' voluntary liquidation, are required
to file their proofs of debt by Nov. 8, 2011, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Sept. 26, 2011.
The company's liquidator is:
Yu Kwong Man
21/F., Tai Yau Building
181 Johnston Road
Wanchai, Hong Kong
POLYSOURCE WORLDWIDE: Court to Hear Wind-Up Petition on Nov. 16
--------------------------------------------------------------
A petition to wind up the operations of Polysource Worldwide
Limited will be heard before the High Court of Hong Kong on
Nov. 16, 2011, at 9:30 a.m.
Wui Loong Scaffolding Works Company Limited filed the petition
against the company on Sept. 8, 2011.
The Petitioner's solicitors are:
Johnnie Yam, Jacky Lee & Co
5th Floor, San Toi Building
137-9 Connaught Road
Central, Hong Kong
QQ CLUB: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on Sept. 21, 2011,
to wind up the operations of QQ Club Limited.
The company's liquidator is Teresa S W Wong.
RISING PROFIT: Court to Hear Wind-Up Petition on Nov. 9
-------------------------------------------------------
A petition to wind up the operations of Rising Profit Corporation
Limited will be heard before the High Court of Hong Kong on
Nov. 9, 2011, at 9:30 a.m.
Cheong Kee Provision (HK) Company Limited filed the petition
against the company on Sept. 7, 2011.
The Petitioner's solicitors are:
Li, Wong, Lam & W. I. Cheung
22nd Floor, Infinitus Plaza
No. 199 Des Voeux Road
Central, Hong Kong
SHINWA MAX: Creditors' Proofs of Debt Due Oct. 17
-------------------------------------------------
Creditors of Shinwa Max Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Oct.
17, 2011, to be included in the company's dividend distribution.
The company's liquidators are:
Ho Man Kit Horace
Kong Sze Man Simone
Unit 511, 5/F, Tower 1
Silvercord, 30 Canton Road
Tsim Sha Tsui, Kowloon
Hong Kong
SHUN QUN: Lo and Leung Appointed as Liquidators
-----------------------------------------------
Lo Ka Ying and Leung Ka Lok said in notice dated Sept. 30, 2011,
they have been appointed by the High Court of Hong Kong as
liquidators of Shun Qun Industrial Company Limited on Aug. 3,
2009.
The liquidators may be reached at:
Lo Ka Ying
Leung Ka Lok
Room 1307, Tower 1
Lippo Centre, 89 Queensway
Admiralty, Hong Kong
SOLARITE ENTERPRISES: Court Enters Wind-Up Order
------------------------------------------------
The High Court of Hong Kong entered an order on July 13, 2011, to
wind up the operations of Solarite Enterprises Limited.
The company's liquidator is Pui Chiu Wing.
STRATEGIC FINANCIAL: Court Enters Wind-Up Order
-----------------------------------------------
The High Court of Hong Kong entered an order on Sept. 21, 2011,
to wind up the operations of Strategic Financial Services (HK)
Limited.
The company's liquidator is Teresa S W Wong.
TE FA: Court Enters Wind-Up Order
---------------------------------
The High Court of Hong Kong entered an order on Sept. 21, 2011,
to wind up the operations of Te Fa Company Limited.
The company's liquidator is Teresa S W Wong.
TSIEN WUI: Contributories and Creditors to Meet on Oct. 21
----------------------------------------------------------
Creditors and contributories of Tsien Wui Stone Co., Ltd, will
hold their first meetings on Oct. 21, 2011, at 3:30 p.m., and
4:00 p.m., respectively at Room 203, Duke of Windsor Social
Service Building, at No. 15 Hennessy Road, Wanchai, in Hong Kong.
At the meeting, Pui Chiu Wing, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
WELL GAIN: Lo and Leung Appointed as Liquidators
------------------------------------------------
Lo Ka Ying and Leung Ka Lok said in notice dated Sept. 30, 2011,
they have been appointed by the High Court of Hong Kong as
liquidators of Well Gain Construction Engineering Limited on
Aug. 3, 2009.
The liquidators may be reached at:
Lo Ka Ying
Leung Ka Lok
Room 1307, Tower 1
Lippo Centre, 89 Queensway
Admiralty, Hong Kong
W.H. MANDOLYN: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on Sept. 1, 2011, to
wind up the operations of W.H. Mandolyn International Limited.
The company's liquidators are Ho Man Kit Horace and Kong Sau Wai.
=========
I N D I A
=========
AMBA METALS: CRISIL Upgrades Rating on INR20MM Loan to 'CRISIL B'
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Amba Metals, part of the Amba group, to 'CRISIL B/Stable' from
'CRISIL B-/Negative', while reaffirming the rating on AMM's
short-term facilities at 'CRISIL A4'.
Facilities Ratings
---------- -------
INR20 Million Term Loan CRISIL B/Stable (Upgraded from
'CRISIL B-/Negative')
INR13.4 Mil. Proposed Cash CRISIL B/Stable (Upgraded from
Credit Limit 'CRISIL B-/Negative')
INR97.5 Million Cash Credit CRISIL B/Stable (Upgraded from
'CRISIL B-
/Negative')
INR70 Mil. Letter of Credit CRISIL A4 (Reaffirmed)
INR12.5 Million Bank Guarantee CRISIL A4 (Reaffirmed)
The rating upgrade reflects consistent timely servicing of debt
by the Amba group over the past 12 months through August 2011.
The upgrade also reflects CRISIL belief that the Amba group's
liquidity will improve over the medium term, aided by recent
enhancement in bank lines for group company Amba Shakti Ispat Ltd
(ASIL) and expected enhancement in AMM's bank lines in the near
term. CRISIL believes that the Amba group's topline will increase
moderately and maintain its profitability and capital structure
will remain stable at current levels over the medium term. The
group's capital structure will be further supported by the
absence of any major debt-funded capital expenditure (capex)
programme for the medium term.
The ratings continue to reflect the Amba group's small scale of
operations in the highly competitive steel industry, and the
group's susceptibility to volatility in raw material prices.
These rating weaknesses are partially offset by the group's
established market position in Himachal Pradesh.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of AMM and ASIL. This is because the two
entities, together referred to as the Amba group, have strong
operational linkages (AMM supplies steel billets to ASIL), and
are under a common management. Also, the management intends to
merge AMM and ASIL once the tax holiday period expires in 2013-14
(refers to financial year, April 1 to March 31).
Outlook: Stable
CRISIL expects the Amba group's scale of operations to remain
small over the medium term. The group's financial risk profile is
expected to remain stable, supported by low gearing and
substantial cash accruals, over the medium term. The outlook may
be revised to 'Positive' if the group's financial risk profile
improves significantly, most likely driven by more-than-expected
cash accruals. Conversely, the outlook may be revised to
'Negative' if the group undertakes larger-than-expected debt-
funded capex programme, thereby weakening its capital structure,
or reports lower-than-expected growth in operating income and
margin.
About the Group
ASIL was incorporated in 2004 as a private limited company,
promoted by Mr. S K Goel and his sons, Mr. Kamal Goel and
Mr. Pankaj Goel. The company is in the business of manufacturing
thermo-mechanically-treated (TMT) bars, angles, and channels. Its
plant in Kala Amb (Himachal Pradesh) has capacity of 96,000
tonnes per annum (tpa). The unit enjoyed 100% income tax
exemption for the first five years of operations till 2008-09,
and will enjoy a 30% tax rebate till 2013-14. It also enjoys 100%
central excise exemption for 10 years till 2013-14.
AMM was set up in 2004 as a partnership firm by the promoters of
ASIL. The firm is in the business of manufacturing mild-steel
ingots and billets. Its plant in Kala Amb has capacity of 48,000
tpa. The firm was set up to support the raw material
requirements of ASIL. AMM enjoys the same tax and central excise
benefits as ASIL.
For 2010-11, the Amba group reported a profit after tax (PAT) of
INR10.23 million on net sales of INR1.64 billion, against a PAT
of INR42.5 million on net sales of INR1.85 billion for the
previous year.
ANIL KUMAR: CRISIL Places 'CRISIL BB+' Rating on INR40MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to
the bank facilities of Anil Kumar and Company.
Facilities Ratings
---------- -------
INR40.0 Mil. Overdraft Facility CRISIL BB+/Stable
(Assigned)
INR160.0 Million Bank Guarantee CRISIL A4+ (Assigned)
The ratings reflect the benefits that AKC derives from its
efficient working capital management, and its partners' extensive
experience in undertaking electrical and civil contracts. These
rating strengths are partially offset by AKC's modest scale of
operations, geographical concentration, average financial risk
profile marked by a small net worth and aggressive gearing, and
susceptibility to volatility in raw material prices and to
intense competition.
Outlook: Stable
CRISIL believes that AKC will show a moderate revenue growth and
maintain its profitability on the back of its healthy order book.
The outlook may be revised to 'Positive' if AKC posts higher-
than-expected profitability leading to an improvement in its
financial risk profile. Conversely, the outlook may be revised to
'Negative' in case the firm's liquidity weakens significantly
because of a stretched working capital cycle.
About Anil Kumar
AKC was set up as a partnership firm in 1986 by Mr. Anil Kumar
Gupta and Mr. Gyan Prakash Goel. The firm undertakes electrical
and civil contracts for government entities including various
development authorities. The electrical projects include erecting
substations and laying of overhead and underground lines, whereas
the civil projects include constructing roads, buildings, water &
sewerage treatment facilities, and water supply, drainage, and
sewerage lines.
AKC reported a provisional profit after tax (PAT) of INR57.5
million on gross sales of INR1.54 billion for 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR24
million on gross sales of INR1.11 billion for 2009-10.
ANIL SPECIAL: ICRA Reaffirms [ICRA]BB+ Rating on INR55cr Facility
-----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]BB+'
outstanding on INR55.65 crore fund based facilities of Anil
Special Steels Industries Limited. The outlook for the long term
rating is stable. ICRA has also reaffirmed the short-term rating
of '[ICRA]A4+' for INR29.35 crore non-fund based facilities of
ASSIL.
The rating action takes into account the long experience of the
promoters in the steel industry; ASSIL's long standing
relationship with its clients; and the company's moderate gearing
level. The ratings also factor in ASSIL's presence in the export
market and its planned venture in manufacturing of thermo
mechanically treated (TMT) bars, which is likely to help in
diversification of the company's revenue stream.
The ratings however continue to remain constrained by the highly
competitive and fragmented nature of the industry; high working
capital intensity of the business; and vulnerability of ASSIL's
profitability to raw material price volatility and adverse
movements in foreign exchange rate. ICRA has also taken note of
the time and cost overrun risks related to the sizeable debt
funded capex (for setting up a billet and TMT bars manufacturing
facility) being presently undertaken by ASSIL; which can have an
adverse impact on the debt protection indicators of the company
in the medium term.
Anil Special Steel Industries Limited is a public listed company
engaged in the manufacturing and sale of cold rolled closed
annealed coils (CRCAC) and hardened and tempered (H&T) steel
strips. In addition to this, ASSIL also sells circular saw discs
which are manufactured by its group company. The company was
promoted by Mr. Satya Narain Khaitan in 1968 and currently the
business is being managed by his son, Mr. Sudhir Khaitan. The
manufacturing facility of the company is located in Jaipur
(Rajasthan) and has an installed annual capacity of 40000 MT.
ASSIL is presently also in the process of setting up a billet and
TMT bars manufacturing facility in Jaipur with an have a capacity
of around 80000 MT per annum.
Recent Results
For FY 2011, the company has achieved an operating income of
INR132.76 crore and a Profit After Tax of INR3.05 crore.
A P ENTERPRISES: CRISIL Rates INR100MM Cash Credit at CRISIL BB-
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the cash
credit facility of A P Enterprises Pvt Ltd.
Facilities Ratings
---------- -------
INR100 Million Cash Credit CRISIL BB-/Stable (Assigned)
The rating reflects APEPL's established market position and its
promoters' extensive experience in the paper trading industry and
its geographically diversified revenue profile. These rating
strengths are partially offset by APEPL's weak financial risk
profile, marked by its highly leveraged capital structure and
weak debt protection metrics, and working-capital-intensive
operations.
Outlook: Stable
CRISIL believes that APEPL will benefit over the medium term
backed by its promoters' established track record in the paper
trading industry. The outlook may be revised to 'Positive' if the
company's financial risk profile improves through equity infusion
by the promoters or improvement in its working capital
management. Conversely, the outlook may be revised to 'Negative'
in case APEPL reports lower-than-expected profitability or
contracts higher-than-expected debt for incremental working
capital requirements, thereby adversely impacting its debt
protection metrics.
About A P Enterprises
Incorporated in 1993 and based in Chandigarh, APEPL trades in
kraft paper and paper boards. The company is promoted by Mr.
Narinder Garg and his family members. About 95% of the company's
sales are through trading kraft paper while the remaining is
through paper boards and others. APEPL sells to about 100
corrugators based in Uttar Pradesh, Punjab, and Himachal Pradesh.
APEPL reported a profit after tax (PAT) of INR4.5 million on net
sales of INR857 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR2.7 million on net
sales of INR674 million for 2009-10.
AXIS BANK: Fitch Affirms FC Upper Tier II Bonds Ratings at 'BB-'
----------------------------------------------------------------
Fitch Ratings has affirmed India-based Axis Bank Ltd's (ABL)
Long-Term (LT) Foreign Currency (FC) Issuer Default Rating (IDR)
at 'BBB-' with Stable Outlook.
The ratings reflect the bank's strong franchise and its sound
profitability and asset quality. The bank's reputation,
established track record and capable management have enabled it
to carve leading position in certain niches (e.g. debt
syndication and underwriting) while ensuring growth over the last
five (FY07-FY11) years. However, rapid growth (FY11: 36.5%) has
resulted in a fairly volatile funding profile and stretched
capital levels. The Stable Outlook reflects Fitch's expectation
that growth will slow and capitalization will be bolstered in the
near-term. Continued rapid growth and/or deterioration in asset
quality that is not matched by higher levels of capital may lead
to negative rating action.
In FY11, the bank's Tier 1 capital adequacy ratio (CAR) and total
CAR deteriorated to 9.4% (FY10: 11.2%) and 12.7% (15.8%)
respectively, due to rapid loan growth and despite equity issue
of INR38.1bn in September 2009. Tier 1 CAR is close to
management's minimum desired range of 8-9% and could well-drop
below 9%; significantly weaker than large private banks. While
management indicates planned equity injection in FY13, low
capital buffer on a sustained basis will be viewed negative by
Fitch. However, some comfort can be taken from ABL's low levels
of hybrids, a strong solvency buffer (net NPL to equity: 2.2%)
and a Fitch core capital ratio (FY: 9.3%) which is close to the
Tier 1 CAR.
In Fitch's view, stable funding is important as rapid growth in
the last five years (+40%) has resulted in volatile funding
patterns and thereby, a sharply fluctuating low-cost deposit
ratio (FY11: 42.4%; FY10: 47.6%) and continued dependence on bulk
deposits. However, management has indicated its strong
commitment towards a stable funding base and has already shifted
to a liability-focused growth strategy. Fitch believes the
current environment of high interest rates and thereby slowing
credit should provide the bank with enough opportunities to re-
calibrate its funding mix by leveraging new branches. This would
in turn translate to lower funding costs and higher net interest
margins (NIM) over the medium term. Nevertheless, funding costs
will likely remain high for FY12 as high-cost deposits built up
in FY11 will take some time to wind down.
ABL's asset quality improved in FY11, with a declining gross NPL
ratio (FY11: 1.11%; FY10: 1.23%) and higher specific loan loss
provision cover (FY11: 74%; FY10: 68.2%). In the near-term,
while some pressure on asset quality could be expected due to the
challenging credit environment, any large-scale disruption seems
unlikely as the loan mix remains predominantly tilted towards
highly-rated corporates. The bank's significant infrastructure
loan book (FY11: 11% of total loans) is a medium-term risk as a
dominant portion is still under project execution stage. In the
future, gradual increase in interest-sensitive and higher-
yielding retail and SME loans, would also contribute to
increasing risk profile of the bank.
Some moderation in NIM (FY11: 3.4%; Q1FY12: 3.3%) can be expected
as high funding costs are likely to bear down on Axis's already
low asset yields stemming from a significant share of corporate
lending. This will also be influenced by slower growth
expectations and limited ability to pass on further interest rate
increases. Continued high inflation could spark another round of
rate hikes by the central bank which, in Fitch's view, would be
incrementally difficult to pass on as current interest rates are
already close to high pre-crisis levels. Steady fees and stable
costs may mitigate some pressure though asset quality will be a
key influence at the net profit level (ROAA: 1.6% FY11).
ABL is India's third-largest private sector bank with over 1,400
branches in Q1 FY12.
The following ratings of ABL have been affirmed:
-- LT FC IDR: 'BBB-'; Outlook Stable
-- Short-Term FC IDR: 'F3'
-- FC senior debt: 'BBB-'
-- FC subordinated lower tier II: 'BB+'
-- FC upper tier II bonds: 'BB-'
-- FC perpetual tier 1 bonds: 'BB-'
-- Support Rating Floor: 'BB+'
-- National Long-term rating: 'Fitch AAA(ind)'; Outlook Stable
-- INR57bn subordinated lower tier 2 debt programme: 'Fitch
AAA(ind)'
-- INR6.53bn subordinated upper tier 2 debt programme: 'Fitch
AA+(ind)'
-- INR2.14bn perpetual tier 1 debt programme: 'Fitch AA+(ind)'
-- Viability rating: 'bbb-'
-- Individual rating: 'C'
-- Support rating: '3'
BALLAL DEVELOPERS: ICRA Assigns [ICRA]B+ Rating to INR12cr Loan
---------------------------------------------------------------
ICRA has assigned the long term rating of '[ICRA] B+' to INR12.00
crore Term Loan programme of Ballal Developers Private Limited.
The rating reflects strong reputation and long track record of
the promoters with close to three decades experience in the civil
construction industry. The company aims to capitalize its
reputation in the Udupi region to branch out into the residential
cum commercial real estate market. The rating also factors in the
competitiveness of the project Janardana Heights on account of
its location and pricing points.
The rating is however constrained by the company's modest scale
of operations and single project risk. The company is yet to
launch its other residential projects hence revenue visibility on
account of the same is low. However, the projects are expected to
be launched in prime locations of Udupi. The rating also reflects
weak credit metrics as reflected by high gearing of 1.83 times as
on March 31, 2011. Moreover, new term loan of INR12 crore with
short tenure is likely to put strain on the debt servicing
capacity; 85% of the repayment is due in FY2014 and debt
servicing is dependent on the expected cash flows from the new
projects that are yet to be launched. However, ICRA draws some
comfort from the financial support demonstrated by the promoters
through infusion of interest free unsecured loans into the
company.
Ballal Developers Private Limited earlier known as Ballal
Construction Company Private Limited was founded in the year 1991
by Shri N Nagaraj Ballal. The company along with its sister
concerns N Nagaraj Ballal and Harinath Builders & Developers has
executed several projects in civil construction for private
sector and government and semi government entities. In 2008, the
company executed a commercial cum residential complex Janardana
Towers in Udupi for INR12.50 crore for its sister concern
Harinath Builders. In October 2010 it launched its first
commercial cum residential project Janardana Heights as a
developer at a total project cost of INR24 crore.
BELGAUM WIND: ICRA Cuts Rating on INR90cr Loan to '[ICRA] BB'
-------------------------------------------------------------
ICRA has revised the rating assigned to the term loan facilities,
aggregating to INR90 crore of Belgaum Wind Farms Private Limited
to '[ICRA] BB' from 'LBBB-'. The long term rating carries
'Stable' outlook.
The rating revision takes into account the deterioration in the
overall financial risk profile of the company due to lower than
expected levels of plant load factor adversely affecting cash
flows and liquidity position. With lower PLF levels in last two
years of operations, the company has drawn on funds from DSRA for
debt servicing, and as a result, DSRA remains to be topped up to
maintain minimum balance for two quarters of debt servicing. The
rating is further constrained by higher break-even PLF
requirements than the current actuals and also, sensitivity of
any adverse variation in wind speed affecting PLF levels and
consequently, cash flows for debt servicing. The company also
remains exposed to the counter-party credit risks associated with
sale of electricity to BESCOM.
The rating, however, favorably factors in long term fixed price
power purchase agreement with BESCOM, which mitigates off-take
and price risk, expected benefits from sale of CERs and
outsourcing of operation and maintenance to Enercon India Ltd.
ICRA also views positively, back ended debt repayment schedule,
DSRA and the recently sanctioned cash credit limit for meeting
cash flow mismatches in case of any delay in receipt of funds
from the state utility board.
About Belgaum Wind
BWFPL was promoted by technocrats and financial investors who
initially set up India Energy Limited in Guernsey on 16th March
2007, which set up a wholly owned subsidiary for establishing
wind farm projects. BWFPL operates 24.8 megawatt wind power
project, located in Gadag plains near Belgaum in the state of
Karnataka. The project was set up at a total cost of INR1.43
billion, funded in the debt equity ratio of 1.68:1. In July
2011, IEL board agreed that Infrastructure India PLC (IIP) would
acquire the entire share capital of IEL and thus BWFPL would
become a subsidiary of IIP.
During the period ended 2010-11, the company reported net loss of
INR5.9 crore on a turnover of INR13.5 crore.
CHEM EDGE: ICRA Assigns '[ICRA]BB' Rating to INR30cr LT Rating
--------------------------------------------------------------
ICRA has assigned an '[ICRA]BB' rating to the INR30.00 cr long
term fund based bank facilities and '[ICRA]A4' rating to the
INR33.76 Cr. short term non fund based bank facilities of Chem
Edge Global Pvt. Ltd. The outlook on the long term rating is
'Stable'.
The assigned ratings are constrained by the relatively low profit
margins on account of trading nature of business; stiff
competition resulting from a broad supplier base as well as
exposure to commodity price risk and foreign exchange
fluctuation. The ratings are further constrained by the limited
experience of group in the petrochemicals segment; though the
experience of recently joined promoters of group company
mitigates the risk to large extent.
The ratings however favorably factor in the long experience of
the promoters of CEGPL in trading of detergent chemicals by way
of group concerns; established relationship with international
and domestic suppliers along with all required systems in place
in addition to the clientele base present across varied sectors.
The ratings also favorably take into account the wide range and
application of product mix insulating the company from downturn
in any particular industry.
About Chem Edge
Incorporated in March 2011, Chem Edge Global Pvt. Ltd. is
promoted by Mr. Bharatbhai R. Shah and Mr. Fenil B Shah. The
company has been floated to take over the trading division for
detergent raw materials previously handled by Infinium Det-Chem
Pvt. Ltd. In addition to this, the company will also trade some
of the petrochemical products. On the other hand, Infinium Det
Chem Pvt Ltd will act as indenting agent of IOCL. CEGPL is a part
of Ardor group with other companies' viz. Ardor International
Pvt. Ltd., Chem Edge International Pvt. Ltd., Infinium Det Chem
Pvt. Ltd., Jayco Synthetics and Matrix International present
under the group. Apart from Matrix International, which acts as a
finance company for the group concerns, all other companies are
involved in trading of detergent chemicals and petrochemicals.
Recent Results
During FY11, CEGPL reported an operating income of INR25.62 Cr.
and profit after tax of INR0.18 Cr.
INTELL EDUCATIONAL: ICRA Places '[ICRA]BB' Rating to INR9cr Loan
----------------------------------------------------------------
ICRA has assigned '[ICRA]BB' rating to INR9.00 crore fund based
facilities of Intell Educational Society. The outlook on the
long term rating is stable.
The assigned rating is constrained by moderate gearing on account
of debt funded expansion, possible delays in fee reimbursement by
AP government which could strain the liquidity position, and
limited growth potential due to government regulations in the
form of fee fixation by A.P. Government coupled with approvals
from AICTE for seat additions. The fee for various UG courses is
fixed by the State Fee Committee of AP. Also for introduction of
new courses and increase in intake of existing courses, IEC has
to take approval from AICTE. These regulations limit growth
potential of the institute.
However, the rating draws comfort from established presence of
the society backed by experienced promoter Mr. A. V. Prathap
Reddy, founder of several engineering institutes in Andhra
Pradesh and Haryana. Further the rating also factors in the wide
spectrum of courses including diploma, under graduate and post
graduate programmes in various disciplines of engineering, NBA
accreditation for IEC's 4 out of 5 undergraduate engineering
courses and the high profitability of the society.
Intell Educational Society was set up in Anantapur, Andhra
Pradesh. It has 3 institutes under its ambit namely Intell
Engineering College (IEC), Intel Institute of Sciences and Intel
Institute of Teacher Training all located in Anantapur. Mr. A.
V. Prathap Reddy is the President of society. Mr. Reddy is also
Vice President of Ya Ali Moula Educational Society, Anantapur and
Director of Sri Krishnadevaraya Educational Society, Gooty
(A.P.). It offers wide spectrum of courses with various diploma,
UG and PG programmes in various discipline of engineering, MCA
and B.Ed through its different institutes. IEC is affiliated to
Jawaharlal Nehru Technological University -- Anantapur.
KONARK FOUNDATIONS: ICRA Rates INR7.5cr LT Loan at '[ICRA]BB-'
--------------------------------------------------------------
ICRA has assigned '[ICRA]BB-' rating to the INR7.50 crores long
term fund based and INR5.00 crores long term non-fund based
facilities of Konark Foundations Private Limited. The outlook on
the long term rating is stable.
The rating reflects the long experience of the promoters in
construction business and technical capabilities of the company
in construction activities especially in marine works such as
shipping berths and Jetties and adequate order book, which
provides growth visibility for current financial year.
The rating is however constrained by small scale of operations of
the company, resulting in modest economies of scale and modest
bargaining power vis-a-vis customers and suppliers of key inputs.
The rating is also constrained by high customer concentration
risks arising out of the fact that the top two customers account
for over 68% of the revenues in FY2010-11 and execution risks
arising out of delays in completion of some of the projects. High
working capital intensive nature of the operations as reflected
by NWC/OI of 34.23% as on March 31, 2011, coupled with high
turnover growth has resulted in cash flow from operations
(adjusted for working capital changes) remaining consistently
negative. This has resulted in increased funding requirements,
which are largely being met through borrowings, giving rise to
relatively high gearing and modest coverage indicators for the
company. Going forward, the company's ability to orderly and
timely execute the order book and manage working capital
requirements to remain as key rating sensitivities.
Konark Foundations Private Limited, formerly known as Konark
Foundations and Constructions was incorporated in 2007 as a
partnership firm and subsequently converted into Private Limited
Company in 2009. The company is involved in construction of
buildings, bridges, marine works such as Shipping berths and
Jetties for customers such as Military Engineering Service (MES)
and Visakhapatnam Port trust.
Recent Results
During the financial year ending March 2011, the company recorded
net profit of INR1.15 crores on a turnover of INR29.26 crores
(provisional, unaudited financial numbers) as against net profit
of INR0.10 crores on a turnover of INR3.97 crores during
FY2009-10.
KOX MED: ICRA Reaffirms '[ICRA]BB+' Rating to INR6cr Bank Loan
--------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB+' rating assigned to the
INR6.0 crore fund based and non fund based facilities of Kox Med
& Lab Private Limited. The outlook on the rating is stable. ICRA
has also reaffirmed the '[ICRA]A4+' rating to the INR0.5 crore
letter of credit limits of KMPL.
The ratings factor in KMPL's long associations with global
medical equipment players, the promoter's established and healthy
relationships with the cardiologists of the leading cardiac
hospitals largely in the National Capital Region (NCR). KMPL has
a long track record with principals like Abbott Vascular and St.
Jude and has been able to add Boston Scientific as one of its
principals recently.
The ratings, however, remain constrained by KMPL's weak financial
risk profile categorized by decline in operating margins in 2010-
11, stretched liquidity position and high concentration on single
principal (Abbott Vascular). KMPL's operating margins in 2010-11
were impacted by a substantial increase in employee overheads and
liquidity was impacted with strong growth in revenues and
resultant high working capital requirements. KMPL's ability to
sustain a healthy balance of principals as well as hospital
coverage while maintaining profitability and credit metrics will
remain the key rating sensitivity.
KMPL is engaged in the distribution of non surgical cardiology
products in the NCR region. The products distributed include
stents, pace makers and angiography products besides other
devices for several medical equipment manufacturers including
Abbott Vascular, Boston Scientific, St. Jude and Surgi Pharma.
The company was set up in 2001 as a partnership concern and was
later converted into a Private Limited Company in 2004.
Recent Results:
In 2010-11, KMPL recorded an operating income of INR54.7 crore.
The company's operating profit before depreciation, interest and
tax stood at INR2.6 crore. The company recorded a profit after
tax of INR1.0 crore.
LAXMI CONSTRUCTION: ICRA Places [ICRA]BB Rating on INR2.5cr Loan
----------------------------------------------------------------
ICRA has assigned an '[ICRA]BB' to INR2.501 crore cash credit
fund based bank limits and an '[ICRA]A4' to INR2.50 crore bank
guarantee non-fund based bank limits of M/s Laxmi Construction
Company. The outlook on the long term rating is stable.
The assigned ratings are constrained by the company's small scale
of operations, its reliance primarily on Government tenders and
risks arising from high sectoral and regional concentration. A
majority of the projects executed in the past and orders in hand
pertain to road construction and are offered by PWD in the
Vidarbha region of Maharashtra. The ratings are also constrained
by the weak capital structure and stretched liquidity profile as
evidenced by high utilization of working capital limits. ICRA
also takes into account, the fact that the net-worth of the firm,
given its partnership status, will remain contingent to any
significant capital dealings by partners.
The ratings however, favorably factor in the established track
record of the management in the construction business and
established client base primarily comprising of government
entities like Maharashtra Public Works Department (PWD) and
Western Coalfields Limited. While there could be delays in
realization of bills, incidences of bad debts have been minimal.
About Laxmi Construction
M/s Laxmi Construction Company is a partnership firm registered
in 2001. LCC is mainly engaged in the business of civil
construction works in the nature of road and bridge construction
and other allied activities. It also engages in running of hot
mix plant which is done only for captive requirements. The main
source of revenue is from civil works undertaken for the Public
Works Department (PWD). At present, the firm has kept its
operations confined to the Vidarbha region of Maharashtra. The
firm has Class 1(A) registration with Public Works Department,
Government of Maharashtra. LCC has setup 5 Hot Mix Concrete
plants of which two are in Gadchiroli, one in Chandrapur and the
rest two at the worksite. LCC has its administrative office in
Chandrapur, Maharashtra.
Recent results:
LCC recorded a net profit of INR0.93 Crore on an operating income
of INR14.88 Crore as per the provisional figures for the year
ending March 31, 2011 and net profit of INR1.48 Crore on an
operating income of INR25.55 Crore as per the audited figures for
the year ending March 31, 2010.
MADHU JEWELLERS: CRISIL Rates INR70MM Cash Credit at 'CRISIL BB-'
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the cash
credit facility of Madhu Jewellers Pvt Ltd.
Facilities Ratings
---------- -------
INR70 Million Cash Credit CRISIL BB-/Stable (Assigned)
The rating reflects MJPL's low inventory and moderate debtor risk
and the extensive industry experience of its promoters and
company's established customer relationships. These rating
strengths are partially offset by MJPL's weak debt protection
metrics and low profitability, due to the low value addition
nature of MJPL's operations, and the modest scale of its
operations in the gold jewellery industry.
Outlook: Stable
CRISIL believes that MJPL will continue to benefit from its
promoters' extensive experience in the jewellery business and
company's established customer relationships over the medium
term. The outlook may be revised to 'Positive' in case of
substantial increase in MJPL's scale of operations and
profitability, leading to better-than-expected cash accruals.
Conversely, the outlook may be revised to 'Negative' if MJPL
faces any pressures on liquidity because of larger-than-expected
working capital requirements, or if its capital structure
deteriorates because of an aggressively debt-funded capital
expenditure (capex) programme.
About Madhu Jewellers
Established in 2006 by Mr. Mukeshkumar Muthaliya in Mumbai, MJPL
is engaged in the manufacturing (on a job-work basis) of gold
jewellery. The company mainly deals in bangles in addition to
necklaces, rings, chains. MJPL mainly sells to branded retail
showrooms with major revenues coming from Southern India.
MJPL reported a profit after tax (PAT) of INR1.2 million on net
sales of INR303.6 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.7 million on net
sales of INR93.6 million for 2009-10.
PRIYANKA CONSTRUCTIONS: ICRA Rates INR6cr Loan at '[ICRA]BB-'
-------------------------------------------------------------
ICRA has assigned an '[ICRA]BB-' rating to the INR6.00 crore cash
credit facility of Priyanka Constructions (Baroda) Private
Limited. The outlook for the long term rating is stable.
ICRA has also assigned an '[ICRA]A4' rating to INR10.00 crore
non-fund based bank facility of PCPL. The assigned ratings are
constrained by the company's modest scale of operations; low
profit margins, leveraged capital structure and weak coverage
indicators.
The company's revenue growth has been muted as it is linked to
capex activities of larger clients; further the company's
operations are concentrated in the vicinity of Vadodara. The
assigned ratings however favorably consider the extensive
experience of the promoters and the established & reputed client
profile of the company. The ratings also positively factor the
moderate order book position which provides visibility to the
company's revenue going forward.
Priyanka Constructions (Baroda) Private Limited was established
in 1998 as a partnership firm, and later converted into a private
limited company in 2002. The company is engaged in Engineering &
civil construction in industrial, institutional, as well as mass
housing projects. The company is based out of Vadodara, Gujarat.
Recent Results
In FY 2010, the company reported a profit after tax of INR0.58 Cr
on operating income of INR25.41 Crore, and profit after tax of
INR0.20 Cr on an operating income of INR24.62 Cr. in FY 2011
(Unaudited)
SABOO ENGINEERS: ICRA Puts [ICRA]BB+ Rating on INR2cr Cash Credit
-----------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]BB+' to the
INR2.00 crore cash credit facilities of Saboo Engineers Private
Limited. The outlook on the long term rating is stable. ICRA has
also assigned a short-term rating of '[ICRA]A4+' to the INR6.50
crore fund based facilities of SEPL.
The assigned ratings takes into account long track record of the
promoters as EPC contractor for cement plants and group support
derived out of other companies which are in the similar business.
The ratings also takes into account healthy operating margins in
the business and adequate liquidity as evidenced by strong cash
balance as on March 31, 2011.
The ratings are however constrained by the raw material price
risk since majority of its contracts are of fixed price nature
with long execution period. The rating is also constrained by
high concentration risk as majority of SEPL's contracts are of
export oriented nature which also results in foreign exchange
risk on export receivables. Going forward the company's ability
to execute the projects in a timely manner and maintain its
profitability will be key the rating drivers.
Saboo Engineers Pvt. Ltd. was established in the year 1990 by
Mr. S.G. Saboo to act as an turnkey contractor for installing
cement plant The company's manufacturing facility for cement
plants, Lime hydration and calcinations plant, bauxite
calcinations and allied mineral processing machinery is located
in the Jodhpur Industrial area. The group consists of similar
business through a group company, Saboo Cemtech Engineers Private
Limited.
Recent Results
As per results for FY 2011, the company has achieved an operating
income of INR46.10 crore and a Profit after Tax of INR2.80 crore
as against the PAT of INR2.7 crores on operating income of
INR21.2 crores in FY10
SAMRAT PLYWOOD: ICRA Reaffirms [ICRA]BB- Rating on INR19.9cr Loan
-----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]BB-' for an
enhanced amount of INR19.90 crore fund based facilities of Samrat
Plywood Limited. The outlook for the long term rating is stable.
ICRA has also reaffirmed the short term rating of '[ICRA]A4' for
an enhanced amount of INR8.10 crore non-fund based facilities of
SPL.
The rating action factors in SPL's high gearing levels on account
of high working capital intensity of the business; which further
coupled with low net profitability has resulted in average debt
protection metrics for the company. The ratings continue to
remain constrained by the high competitive intensity of the
plywood and laminates industry and increasing competition from
substitutes like particle/ medium density fibre (MDF) board,
which limits the pricing flexibility of the players in the
industry.
The ratings however derive comfort from the long experience of
the promoters in the industry; SPL's extensive distribution
network and its relatively well established brand 'Samrat' which
has enabled the company to achieve steady top line growth in the
past few years.
Samrat Plywood Limited is a closely held public limited company
engaged in the manufacturing of plywood and laminates. The
business was originally carried out through a partnership firm
(promoted by Mr. Suresh Singhal, Mr. Sushil Singhal and
Mr. Sitaram Jhawar), which was dissolved in the year 1987 and SPL
was incorporated. The management of the company is currently
vested with Mr. Suresh Singhal and his three sons (Mr. Rajiv
Singhal, Mr. Anand Singhal and Mr. Puneet Singhal). The company
produces plywood at its Derabassi (Punjab) unit with an installed
annual capacity of 1200000 square metres and laminates at its
Nalagarh (Himachal Pradesh) unit, with an installed annual
capacity of 991500 units.
Recent Results
For FY 2011, the company has achieved an operating income of
INR47.66 crore and a Profit After Tax of INR0.67 crore (as per
provisional financial results).
SOKTAS INDIA: ICRA Reaffirms '[ICRA]BB+' INR20cr Loan LT Rating
---------------------------------------------------------------
ICRA has reaffirmed the long term rating '[ICRA] BB+' with stable
outlook to the INR20.0 crore Cash Credit facilities and INR83.5
crore Term Loan facilities of Soktas India Private Limited. ICRA
has also reaffirmed the rating '[ICRA]A4+' to the INR10.0 crore
short term fund based facilities and INR17.0 crore short term non
fund based facilities of SIPL.
The ratings continue to reflect the strong operational and
technological support that SIPL derives from its parent and the
internationally established brand name in the fabrics market
which has enabled SIPL to achieve high levels of capacity
utilization in the initial years of operations. The company is
able to build a healthy client base in domestic market supported
by established brand name. The ratings are however constrained by
lower than anticipated margins of the Company which were
primarily impacted by high raw material prices. The company
operates in fragmented and competitive market restraining its
pricing power which however is offset to an extent by a premium
product profile. Going forward, scaling up of operations and
expansion of margins would remain key challenges for the company.
About Soktas India
SIPL is a subsidiary of Soktas, Turkey. It was incorporated on
February 15, 2007 and has set up a fabric manufacturing unit with
a capacity to manufacture 7 million meters of fabric per annum at
Kolhapur. The facility manufactures high quality yarn-processed
fabric to be used for shirting purposes, domestically as well as
for export. The parent company has contributed to 88.2% of the
capital and the rest has been contributed by International
Finance Corporation. The overall cost of the project is expected
to be INR250 Crore including all phases. The plant started
commercial production in April, 2009.
Recent Results
SIPL has reported an operating profit before depreciation,
interest, amortization and tax (OPBDITA) of INR18.1 crore in FY
10-11 on an operating income of INR113.4 crore. The company
reported net losses of INR7.7 crore during the same period.
SPADS TEXTILES: ICRA Cuts Rating on INR17.46cr Loan to '[ICRA]B+'
-----------------------------------------------------------------
ICRA has revised the long term rating outstanding on the INR17.46
crore term loan facilities and INR9.00 crore long term fund based
facilities (revised from INR4.50 crore) of Spads Textiles Limited
from 'LB' to '[ICRA]B+'. ICRA has also reaffirmed the short term
rating, '[ICRA]A4' assigned to INR2.00 crore of non fund based
bank facilities of the company.
The upward revision in the long term rating takes comfort from
the improvement in financial profile of the company, with healthy
margins, higher accruals and consequent improvement in the
capital structure. Also, the company's capital investment plan
towards spindle addition is expected to aid revenue growth in the
long run. However, the ratings continue to be constrained by the
company's limited scale of operations restricting their economies
of scale and intense competition in a fragmented industry which
limits pricing power. While the margins and capital structure
have improved, Spad's financial profile is tempered by stretched
working capital and negative cash flows. With sharp fluctuation
in the polyester cotton and yarn prices in the recent periods,
the company's margins are expected to be compressed in the near
term. Further, the ratings factor in the current demand outlook
for textiles which is likely to add pressure on margins.
About Spads Textiles
Spads Textiles Limited was incorporated as a Public Limited
Company in November 2005 in Jaggayyapet, Krishna District, Andhra
Pradesh. The Company is engaged in the production of polyester
yarn with an installed capacity of 14,112 spindles. STL has plans
to add another 2,016 spindles in financial year 2011-12 thereby
increasing its total capacity to 16,128 spindles.
Recent Results
For the year ended March 31, 2011, STL's net profits stood at
INR1.5 crore on operating income of INR32.6 crore as against a
net profit of INR0.7 crore on operating income of INR25.6 crore
during 2009-10.
SRAVANTHI ENERGY: ICRA Puts [ICRA]BB- Rating to INR633.75cr Loan
----------------------------------------------------------------
ICRA has assigned an '[ICRA]BB-' rating to the INR633.75 crores
term loans and INR50.0 crores non-fund based limits of Sravanthi
Energy Private Limited. The outlook on the long-term rating is
stable.
The rating is constrained by the project execution risks that are
typical of green-field power projects and relatively large size
of the project vis-a-vis the group's other existing capacities.
While assigning the rating, ICRA has also taken into
consideration the prevailing shortage in supply of gas in the
country against an increasing demand for gas from existing and
under construction gas based capacities which may expose SEPL to
either supply shortages or increase in fuel cost. This risk is
further aggravated by the fact that the company is yet to enter
into a firm fuel supply agreement; although the project is in the
priority list for gas allocation from RIL's field in Krishna
Godavari basin. Further, the ability to adhere to normative level
of costs and operating parameters would be critical for SEPL
particularly since a significant portion of the power generated
is proposed to be sold on the basis of merchant tariffs, where
cost increases may not be pass-through.
The rating is also affected by the absence of a long term Power
Purchase Agreement (PPA) which increases the offtake risk for the
company, though this risk is partly mitigated by power deficit
scenario in Northern India. Moreover, the absence of a guaranteed
price or minimum guaranteed quantity in its existing short-term
PPA with NTPC Vidyut Vyapar Nigam Limited exposes SEPL to demand
risk and change in power sale realization. Further, the rating
also factors in the group risks arising out of being a part of a
group that has sizeable capital expenditure plans in relation to
their limited current experience.
About Sravanthi Energy
Sravanthi Energy Private Limited is a part of Sravanthi group
which has been promoted by Mr. D V Rao, ex-Joint Managing
Director of Lanco Infratech Ltd. The group's core team has wide
experience in implementing power projects across India. Sravanthi
is an emerging player in power sector which has diversified
interests in the fields of power generation, EPC business,
project consultancy, agri business and trading. The group is
currently implementing a 5MW hydro power project (in SPV- Door
Sanchar Hydro Power Private Limited) and 450 MW gas based plant
(in SEPL) and wind farm of 100 MW capacity and 480 MW gas based
project in Andhra Pradesh. However most of these plans are at a
nascent stage. The group is also involved in EPC business through
Sravanthi Infratech Private Limited. SEPL is developing a 2*225
MW gas based power project in at Udham Singh Nagar district In
Uttarakhand state. Land has been fully acquired and all
clearances are in place. The total project cost is INR1743 crores
(Rs. 3.87/MW) which is to be funded in a debt equity ratio of
3:1. The combined cycle for Phase 1 of the project is expected to
be operational in December 2011 and Phase 2 in March 2012.
VENUS REMEDIES: CRISIL Raises Rating on INR277.3MM Loan to 'BB+'
----------------------------------------------------------------
CRISIL has upgraded its ratings on the INR780.0-million cash
credit limit and INR779.9-million term loan facilities of Venus
Remedies Ltd to 'CRISIL BB+/Stable' from 'CRISIL BB-/Stable',
reaffirmed its ratings on VRL's letter of credit and bank
guarantee facilities at 'CRISIL A4+', and assigned its 'CRISIL
BB+/Stable/ CRISIL A4+' ratings to VRL's other aforementioned
bank facilities.
Facilities Ratings
---------- -------
INR780.0 Mil. Cash Credit Limit CRISIL BB+/Stable (Upgraded
(Enhanced from INR550 Million) from 'CRISIL BB-/Stable')
INR779.9 Mil. Rupee Term Loan CRISIL BB+/Stable (Upgraded
(Reduced from INR875.10 Million) from 'CRISIL BB-/Stable')
INR277.3 Million Term Loan CRISIL BB+/Stable
(Assigned)
INR289.6 Million Corporate Loan CRISIL BB+/Stable
(Assigned)
INR8.2 Mil. Proposed Long-Term CRISIL BB+/Stable
Bank Loan Facility (Assigned)
INR5.0 Million Letter of Credit CRISIL A4+ (Reaffirmed)
(Reduced from INR125.0 Million)
INR225.0 Inland/Import Letter CRISIL A4+ (Assigned)
of Credit
INR25.0 Million Bank Guarantee CRISIL A4+ (Reaffirmed)
The rating upgrade reflects VRL's track record of timely
servicing of debt since April 2010. VRL had defaulted on the
repayment of its foreign currency convertible bonds (FCCBs) in
May 2009, and signed a settlement agreement with the FCCB
investors in April 2010. VRL subsequently repaid FCCB investors
partially in April-June 2010. VRL now has outstanding FCCB
repayment of USD 5 million falling due in February 2015. Further,
the company's business risk profile is expected to strengthen
over the medium term with increase in the number of patents
granted to the company for many of its research-based products.
VRL has received patents for many of its products, including
Sulbactomax, Vancoplus, Potentox, from both regulated and semi-
regulated markets, and is now looking for out-licensing partners
for these drugs.
In its rating analysis, CRISIL has amortized VRL's intangible
assets aggregating INR1.35 billion as on March 31, 2011, and the
proposed addition of INR500 million per annum (representing the
investment in research and development [R&D] initiatives of the
company and product registration expenses) over a period of five
years.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of VRL and VRL's wholly owned subsidiary,
Venus Pharma GmbH (VP; based in Germany). VP provides out-
licensing services of common technical documents and warehousing
and logistical support for VRL. The two entities have together
been referred to herein as VRL.
VRL enjoys a healthy financial risk profile, marked by moderate
gearing, adequate cash accruals and debt protection metrics, and
healthy net worth size. These rating strengths are partially
offset by past instances of delay by VRL in meeting repayment
obligations on FCCBs, and its small scale of operations in the
pharmaceutical industry.
Outlook: Stable
CRISIL believes that VRL will continue to benefit over the medium
term from its expanding patented products portfolio and
established market position in the high-margin critical care
segment, supported by its focus on R&D activities. VRL's
financial risk profile is expected to remain healthy over the
medium term, supported by healthy cash accruals in relation to
its debt repayments. The outlook may be revised to 'Positive' if
VRL's revenues and profitability increase more than expected,
mainly driven by increasing out-licensing agreements signed by
the company. Conversely, the outlook may be revised to 'Negative'
if VRL makes more-than-expected investments in its R&D
activities, draining itself of any excess liquidity and thereby
increasing its debt level, or if its market position weakens
because of any adverse regulatory changes in the domestic and
foreign markets.
About Venus Remedies
Established in 1991 by Mr. Pawan Chaudhary, VRL has a presence in
both the branded and generic products segments of the
pharmaceutical industry, especially in the critical-care segment.
The company with its manufacturing units in Panchkula (Haryana)
and Baddi (Himachal Pradesh) manufactures large- and small-volume
parenterals, mainly in the antibiotics and oncology segments. The
company accesses the European market through its wholly owned
subsidiary, VP, based in Germany.
VRL reported, on provisional basis, a profit after tax (PAT) of
INR281.41 million on net sales of INR3.63 billion for 2010-11
(refers to financial year, April 1 to March 31); the company
reported a PAT of INR274.21 million on net sales of INR3.14
billion for 2009-10.
After deducting INR271.3 Million and INR167.3 Million on account
of amortization of intangible assets for 2010-11 and 2009-10,
respectively. Notwithstanding this amortization, the company
reported a PAT of INR462.2 Million and INR395.6 Million for
2010-11 and 2009-10, respectively.
=========
J A P A N
=========
CAFES 2: S&P Affirms B-(sf) Rating on Class E Trust Certificates
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B- (sf)' rating
on the class E floating-rate trust certificates issued under the
Cafes 2 transaction, and removed the rating from CreditWatch with
negative implications.
"On July 11, 2011, we had lowered to 'B- (sf)' from 'BB (sf)' our
rating on class E and placed the rating on CreditWatch negative.
At that time, of the nine loans that originally backed the
transaction, a single loan backed by an office building in Chuo-
Ward, Tokyo, remained. The rating actions were based on our view
that the principal on the lowest-level class E could be partly
impaired if the loan in question were to default due to the
borrower's failure to secure refinancing by the maturity date,
and the special servicer were to complete collection activities
shortly after a loan default," S&P related. Specifically, S&P
then considered these factors:
Under this transaction, if the remaining loan defaulted,
default interest and the reserve established under the trust
account to pay transaction fees were set to be used to pay
special servicer fees, and the loan principal was set to be
used to cover any shortfall that could arise between the
amount of special servicer fees and the sum of the default
interest amount and reserve amount.
A shortfall could arise if the special servicer completed
collection activities within about two months after a loan
default because the shorter the duration between the default
and the loan recovery, the lower the default interest amount.
Hence, if the amount of special servicer fees payable
exceeded the sum of the default interest amount and reserve
amount, class E could incur a principal loss even if the loan
principal was fully recovered.
"Prior to the rating actions, we confirmed that the principal on
the transaction's remaining loan, which defaulted, was fully
recovered because the borrower of the loan was able to secure
refinancing within two months after the loan default. In
addition, an appropriate estimate of overall transaction fees,
which is lower than the sum of the default interest and reserve
amount, has been provided upon agreement among the relevant
parties. We affirmed our rating on class E and removed it from
CreditWatch negative because we take the view that principal and
interest on class E are now more likely to be fully repaid. In
addition, the outstanding principal balances of the class C and D
trust certificates are set to be fully redeemed on the next trust
distribution date in November 2011," S&P related.
Cafes 2 is a multiborrower commercial mortgage-backed securities
(CMBS) transaction originally backed by nine nonrecourse loans
secured by 29 real estate properties. The transaction was
arranged by Credit Agricole Securities Asia B.V., Tokyo Branch
(formerly Calyon Capital Markets Asia B.V., Tokyo Branch), and
ORIX Asset Management & Loan Services Corp. acts as the servicer
for this transaction.
"The rating reflects our opinion on the likelihood of the full
payment of interest and ultimate payment of principal by the
transaction's legal final maturity date in August 2013 for the
class E trust certificates," S&P said.
Rating Affirmed, Off Creditwatch Negative
Cafes 2
JPY16.4 billion floating-rate trust
certificates due August 2013
Class To From Initial issue amount
E B- (sf) B- (sf)/Watch Neg JPY0.16 bil.
J-CORE 16: Moody's Reviews Certs.' Rating for Possible Downgrade
----------------------------------------------------------------
Moody's Japan K.K has placed under review for possible downgrade
the ratings for the Class A through D Trust Certificates issued
by J-CORE 16.
The final maturity of the trust certificates will take place in
May 2015.
Deal Name: J-CORE 16 Trust
Class A, Aaa (sf) Placed Under Review for Possible Downgrade;
previously on September 29, 2008 Assigned at Aaa (sf)
Class B, A3 (sf) Placed Under Review for Possible Downgrade;
previously on July 15, 2010 Downgraded to A3 (sf) from Aa2 (sf)
Class C, Ba1 (sf) Placed Under Review for Possible Downgrade;
previously on July 15, 2010 Downgraded to Ba1 (sf) from A2 (sf)
Class D, Ba2 (sf) Placed Under Review for Possible Downgrade;
previously on July 15, 2010 Downgraded to Ba2 (sf) from A3 (sf)
J-CORE 16, which is backed by a bond and was effected in
September 2008, represents the liquidating securitization of 18
office buildings, most of which are in Tokyo. Nine of the
properties have already been sold.
The excess cash flow to equity holder has been stopped since
January, 2010, as the bond issuer of J-CORE16 could not clear the
early redemption target amount. Instead, a part of the bond's
principal has been redeemed by using its excess cash.
Also, if the bond issuer cannot keep the bond balance below the
Compulsory Redemption Target Amount settled in October, 2011, it
meets the definition of an acceleration event of default on the
Bond.
The current review reflects:
The performance of some backing properties has declined since the
previous rating action date in July 2010 and the profitability of
the properties is likely to be lower than assumed and will be for
some time.
Moody's needs to confirm the performance of the underlying
properties for the remaining bonds and will re-assess its
recovery assumptions for the properties.
The principal methodology used in this rating was "Updated:
Moody's Approach to Rating CMBS Transactions in Japan" (June
2010) published on September 30, 2010.
KAWASAKI KISEN: S&P Puts 'BB+' Corporate Credit Rating on Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB+' long-term
corporate credit and senior unsecured debt ratings on Kawasaki
Kisen Kaisha Ltd. on CreditWatch with negative implications.
"This rating action is based on our view that the likelihood has
increased that Kawasaki Kisen will take longer than we originally
assumed to restore its financial soundness, given its
deteriorating business performance in fiscal 2011 (ending
March 31, 2012) and strong uncertainty over the operating
environment in fiscal 2012 and beyond," S&P related.
On Oct. 3, 2011, Kawasaki Kisen revised downward its earnings
forecast for fiscal 2011, raising its expected operating losses
to JPY32 billion from JPY5 billion, and revising its bottom-line
estimate to a loss of JPY30 billion from a profit of JPY2
billion. The company expects to continue to incur operating
losses in the second half of fiscal 2011 due to the strong yen
and a prolonged downturn in container freight rates. "In our
opinion, the performance of Kawasaki Kisen's car carrier business
is likely to improve in tandem with a full-fledged recovery in
output by domestic automakers. Nevertheless, the yen remains
historically high, and the U.S. and European economies are
slowing. Accordingly, Standard & Poor's believes there is
increased uncertainty over Kawasaki Kisen's business performance
and the prospects for its cash flow in fiscal 2012 and beyond,"
S&P related.
"Standard & Poor's will remove the rating from CreditWatch after
we review the prospects for recovery in Kawasaki Kisen's core
businesses -- including its containership operations -- by
meeting with company management and examining the measures the
company will take to restore its financial soundness. We may
lower the rating if we believe Kawasaki Kisen is unlikely to
restore its financial soundness to a level consistent with the
current rating in terms of its ratio of funds from operations
(FFO, before adjusting for changes in working capital) to total
debt and its total debt to total capital ratio, against a
backdrop of an expected downturn in business in fiscal 2012
andbeyond. A downgrade would be highly likely to be limited to
one notch," S&P stated.
====================
N E W Z E A L A N D
====================
BRIDGECORP LTD: Ex-Director Queries Rent Payment
------------------------------------------------
Jared Savage at The New Zealand Herald reports that a Bridgecorp
director facing Serious Fraud Office charges has questioned the
relationship between the receiver of the failed finance company
and the team who rebuilt Eden Park.
Rob Roest, who will stand trial with Rod Petricevic next year,
e-mailed the Herald after it was revealed that SFO chief Adam
Feeley celebrated the charges against the pair by sharing with
staff a NZ$70 bottle of Gosset champagne from the Bridgecorp
offices.
According to the report, Mr. Roest asked whether the Eden Park
Redevelopment Board -- of which Mr. Feeley was chief executive
before the SFO -- paid rent while based in the Bridgecorp
premises when the company was in receivership.
The chairman of the Eden Park project, John Waller, was also the
PricewaterhouseCoopers partner in charge of the receivership
effort at the time, the Herald notes.
"Did the Eden Park Trust Board pay rent to the receivers for the
use [of the offices]?" Mr. Roest wrote.
Mr. Roest also questioned why the champagne left behind was
consumed by Mr. Feeley and others, the report says.
"Every Bridgecorp item was in the hands of the receivers for the
supposed benefit of the investors, not for personal enjoyment,
and certainly not for the enjoyment of a sub-tenant. Well, that
is if they paid rent?," Mr. Roest wrote.
Mr. Feeley faces an employment investigation after Serious Fraud
Office Minister Judith Collins referred the matter to the State
Services Commissioner.
About Bridgecorp Ltd
Based in New Zealand, Bridgecorp Ltd. is a property development
and finance company.
Bridgecorp was placed in receivership on July 2, 2007, after
failing to pay principal due to debenture holders. John Waller
and Colin McCloy, partners at PricewaterhouseCoopers, were
appointed as receivers. Bridgecorp owes around 14,500 investors,
which liquidators estimate to approximate NZ$500 million.
Bridgecorp's nine Australian companies were also placed into
voluntary administration, owing about 100 investors about
AUD24 million (NZ$27 million).
The New Zealand Herald said PricewaterhouseCoopers recently
announced that secured debenture investors would be paid an
interim dividend of 3.5c in the dollar. Total recoveries would be
less than 10c in the dollar, the Herald discloses.
CRAFAR FARMS: OIO Decision on Chinese Bid Drags On
--------------------------------------------------
BusinessDay.co.nz reports that the Overseas Investment Office's
processing of the latest Chinese bid for the Crafar dairy farming
estate drags into its seventh month, with the Government agency
confirming it has received the extra information it was awaiting.
But OIO manager Annelies McClure is still unable to suggest when
a decision might be made on the application by Shanghai Pengxin
subsidiary Milk New Zealand Holdings to buy the 16 in-
receivership farms, according to BusinessDay.co.nz.
BusinessDay.co.nz relates that Mr. McClure said the office was
evaluating the new information "in order to continue with its
assessment" of the application. Due to the application's
"complexity" it was a category 3 application, where the OIO aims
to provide decisions within 70 days of the date of registration
of the application, she said.
This timeframe was only a target. It excluded the time for the
Government to make a decision on the OIO's recommendation. No
recommendation had yet been made to the Government.
Meanwhile, BusinessDay.co.nz reports that the OIO's separate
investigation into why defeated Chinese Crafar farms bidders UBNZ
Assets and Natural Dairy bought four dairy farms in February last
year also drags on.
According to the report, the office said it had now received
submissions from the two parties on why they believed consent was
not required and was evaluating them.
The UBNZ-Natural Dairy application to buy the main portfolio of
Crafar farms was declined late last year by the Government on the
grounds it failed the "good character" test.
About Crafar Farms
Crafar Farms, New Zealand's largest family owned dairy business,
runs about 20,000 milking cows, and carries about 10,000 of other
stock. The company employed 200 staff.
Crafar Farms was placed in receivership in October 2009, by its
lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson
Finance. The banks, owed around NZ$200 million, put KordaMentha
partners Michael Stiassny and Brendon Gibson in as receivers
after Crafar Farms breached covenants on its loans.
As reported in the Troubled Company Reporter-Asia Pacific on
April 27, 2010, The New Zealand Herald said 16 farms in the
Crafar Farms group have been placed onto the open market for sale
by Crafar's receivers through Bayleys Real Estate. Bayley's said
the receivership sale is the single largest receivership sale of
farms in New Zealand history. The 16 farms employ nearly 200
staff and managers and cover 8,000 hectares. They are located in
the Waikato, near Benneydale in the King Country, Reporoa,
Atiamuri, Waverley, Hawera and Bulls.
WINDFLOW TECHNOLOGY: Gets NZ$150,000 Loan From Director
-------------------------------------------------------
Marta Steeman at BusinessDay.co.nz reports that Windflow
Technology has almost run out of cash with founding director
Geoff Henderson providing the company with a loan of NZ$150,000
to get it through until the end of October.
According to the report, the loan is secured against six of the
additional 18 Windflow 500 blades which the company's wholly-
owned subsidiary Wind Blades made in anticipation of Mighty River
Power's proposed Long Gully wind farm before it became clear that
Mighty River Power was not proceeding with that project.
BusinessDay.co.nz relates that Mr. Henderson said he was taking
this step in order to signal to shareholders his strongly held
belief that the intellectual property (IP) which the shareholders
have funded is worth preserving for the long-term benefit of the
shareholders if at all possible.
The company is extending it capital raising date until October 20
in the hope of gaining the NZ$2 million it requires to remain
solvent, the report states.
BusinessDay.co.nz notes that Windflow said earlier it needed
NZ$2.4 million but the company has reduced that to NZ$2 million
if it undertakes more restructuring.
The company will hold a special meeting of shareholders shortly
after October 20 to decide if they want to continue to support
the company but if it raises enough capital the special meeting
may not be needed, according to BusinessDay.co.nz.
About Windflow Technology
Christchurch, New Zealand-based Windflow Technology Limited --
http://www.windflow.co.nz/-- is engaged in the development and
manufacture of wind turbines. The Company's wholly owned
subsidiaries include, Wind Blades Ltd, Pacific Windfarms Ltd and
Windflow Hawaii Ltd. The Company has one customer, NZ Windfarms
Ltd. Wind Gears Ltd is owned 50% by Windflow Technology Limited.
Wind Gears Ltd is engaged in the development and construction of
gear boxes for the wind turbines. Windpower Otago Ltd is owned
20% by the Company.
* * *
Windflow Technology incurred a net loss of NZ$7 million in the
year ended June 30, 2011, compared with the NZ7.95 million loss
booked in the prior financial year. The company posted a net
loss of NZ$1.23 million for the year ended June 30, 2009.
===========
T A I W A N
===========
PROMOS TECHNOLOGIES: Creditors Fail to Agree on Interest Rate Cut
-----------------------------------------------------------------
According to Bloomberg News, the Taipei-based Liberty Times
reported that ProMOS Technologies Inc.'s creditor banks failed to
agree on interest rate cuts for the chipmaker.
The Troubled Company Reporter-Asia Pacific, citing the China
Economic News Service, reported on July 28, 2011, that
representatives from over 30 creditor banks have agreed in
principle to accept the deal of swapping half of the NT$57
billion that ProMOS owes them for equity as part of their bailout
terms for the financially struggling DRAM maker. The agreement
makes ProMOS Taiwan's first DRAM maker bailed out on the debt-
for-equity term, CENS said.
ProMOS continued operating in the red for the 16th consecutive
quarter, posting net loss of NT$4.26 billion in the first quarter
of 2011, DIGITIMES reported.
ProMOS Technologies Inc. -- http://www.promos.com.tw-- is a
semiconductor memory solution provider in Taiwan. The Company is
principally engaged in the research, design, development,
manufacture and sale of synchronous dynamic random access
memories (SDRAMs), as well as the related import and export
businesses. The Company provides 64 megabytes (Mb), 128 Mb and
256Mb SDRAMs, 128Mb, 256Mb and 512Mb double data rate (DDR)
SDRAMs and others.
*********
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 ***