/raid1/www/Hosts/bankrupt/TCRAP_Public/111111.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
Friday, November 11, 2011, Vol. 14, No. 224
Headlines
A U S T R A L I A
GENWORTH FINANCIAL: Moody's Affirms Rating After IPO Announcement
PERPETUAL TRUSTEE: Moody's Assigns (P)Ba2 Rating to Class E Notes
* AUSTRALIA: Corporate Insolvency Figures Continue to Rise
C H I N A
CDC CORP: Taps Finley Colmer as Chief Restructuring Officer
CDC CORP: Seeks to Employ Lamberth Cifelli as Counsel
SHENGDATECH INC: U.S. Trustee Adds 4 Members to Creditor's Panel
H O N G K O N G
ACTIVE-7 OPTICAL: Court Enters Wind-Up Order
AGP (ASIA): Court to Hear Wind-Up Petition on Dec. 21
H.K. CASHMERE: Court Enters Wind-Up Order
LAND INTERNATIONAL: Court Enters Wind-Up Order
NEW COLOR: Yiu and Lai Appointed as Liquidators
SEC LIMITED: Court to Hear Wind-Up Petition on Nov. 23
SUN RISING: Court Enters Wind-Up Order
TOP FANCY: Court Enters Wind-Up Order
WING HUNG: Court Enters Wind-Up Order
ZTEE ELECTRONICS: Court Enters Wind-Up Order
I N D I A
BUDGE BUDGE: Inadequate Info Cues Fitch to Migrate Low-B Rating
DELTA CONSTRUCTION: Liquidity Status Cues Fitch to Lower Ratings
FORACE POLYMERS: CARE Places 'CARE B+' Rating on INR11.06cr Loan
GREEN FIELD: CARE Assigns 'CARE BB' Rating to INR6.01cr Loan
INDIA REFINERY: ICRA Assigns '[ICRA]BB' Rating to INR1.2cr Loan
KUMAR ARCH: CARE Assigns 'CARE BB-' Rating to INR10cr LT Loan
MARIS HOTEL: ICRA Reaffirms '[ICRA]BB+' Rating to INR4.4cr Loan
MARIS SPINNERS: ICRA Cuts Rating on INR12.49cr Loan to [ICRA]BB-
MATHIYAN CONSTRUCTION: CARE Rates INR4cr Loan at 'CARE BB-'
NEEPAZ V FORGE: Inadequate Info Cues Fitch's Low-B Ratings
RAJARAJAN & SONS: CARE Rates INR20.26cr at 'CARE BB'
SANSKAR AGRO: Fitch Puts Rating on Nat'l Long-Term at 'B+(ind)'
SPRING MERCHANDISERS: ICRA Puts '[ICRA]B' Rating on INR4cr Loan
SAURASHTRA FERROUS: ICRA Cuts Rating on INR7cr Loan to '[ICRA]C'
SAURASHTRA FUELS: ICRA Reaffirms '[ICRA]B' Long-Term Rating
SYNTHETIC PACKERS: ICRA Reaffirms [ICRA]BB Rating to INR10cr Loan
UMALAXMI ORGANICS: CARE Puts 'CARE BB-' Rating on INR7.95cr Loan
J A P A N
CAFES 3'S: Fitch Junks Rating on Two Note Classes
L-JAC FIVE: S&P Lowers Ratings on Class J-1 Certificates to 'CC'
OLYMPUS CORP: Tokyo Police Starts Probe on Concealing Losses
OLYMPUS CORP: Shareholder Calls for Ex-President's Return
M O N G O L I A
GOLOMT BANK: S&P Gives 'BB-/B' Counterparty Credit Ratings
N E W Z E A L A N D
BRIDGECORP LTD: Ex-Director Pleads Guilty; Out on Bail
DATASOUTH GROUP: Former Director Charged with NZ$103MM Fraud
PIKE RIVER: Labor Department Lays Charges Over Mine Disaster
T H A I L A N D
* THAILAND: Bangkok Floods Cause Liquidity Problems in SMEs
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
- - - - -
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A U S T R A L I A
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GENWORTH FINANCIAL: Moody's Affirms Rating After IPO Announcement
-----------------------------------------------------------------
Moody's Investors Service has affirmed the ratings of Genworth
Financial Mortgage Insurance Pty Limited (Genworth Australia,
insurance financial strength rating of A1) and its subsidiary
Genworth Financial Mortgage Indemnity Limited (Genworth
Indemnity, insurance financial strength rating of A2). The rating
outlooks remain negative for Genworth Australian and stable for
Genworth Indemnity.
Ratings Rationale
The affirmation follows the announcement on Nov. 3, 2011, by the
ultimate parent of the two entities, Genworth Financial Inc.
('GNW', senior unsecured rating of Baa3, negative outlook), that
it intends to sell a minority position in its Australian mortgage
insurance operations, comprised of Genworth Australia and
Genworth Indemnity. GNW expects to sell up to 40% of its
Australian holdings, with a targeted completion in Q2 2012. The
transaction remains subject to market conditions and regulatory
approvals. The IPO follows a similar sale of a minority stake in
GNW's Canadian mortgage insurance operations in July 2009.
"On balance, a successful IPO would be a moderate credit positive
for Genworth Australia," Moody's Senior Credit Officer Ilya Serov
commented. "Genworth Australia's current rating profile is
constrained by uncertainties and challenges within GNW's US
mortgage insurance operations, which are pressured by the US
housing downturn. The planned IPO would improve financial
flexibility at the Australian entity by providing direct access
to equity capital markets", Mr. Serov explained.
At the same time, Moody's notes that, in the short-run, the IPO
raises some uncertainty in respect of Genworth Australia's
ultimate credit profile. In its analysis Moody's will
particularly focus on:
- The governance structure and risk appetite of the Australian
entity post-IPO. The composition of the Board of Directors,
the company's strategy and its risk appetite may change
following the IPO, and will be a key component of Moody's
analysis of Genworth Australia going forward.
- The possible restructuring of the Australian entity's
reinsurance coverage. Genworth Australia maintains reinsurance
agreements with its US affiliate Genworth Mortgage Insurance
Corporation (IFSR Ba1, negative outlook), which continues to
provide the majority of its reinsurance support. Genworth
Australia has previously indicated an intention to reduce
dependence on the US entity for reinsurance to about 6% of its
regulatory capital sources by 2013. Moody's would view
reinsurance sourced from a stronger provider to be credit-
positive for Genworth Australia.
Moody's has also commented that, by the nature of its operations,
Genworth Australia's credit profile remains dependent on
continued stability in the Australian housing market.While
Moody's views the probability of a severe housing crisis to be
low, a greater degree of caution with regards to the future
performance of Australian mortgage portfolios may be warranted,
as the rating agency noted in its July 26, 2011 special comment
titled "Australian RMBS: A Post-Crisis Reassessment". In
particular, a number of risk factors have been either increasing
in intensity over the recent past, or remain elevated:
- Australia's economic growth has been increasingly driven by
commodity sector investment and favorable terms of trade.
However, the continuing structural transformation of the
economy, in favor of commodity sector, implies the creation of
both winners and losers, with certain industries and
geographic regions potentially coming under significant
pressure. As a result, default and delinquency rates in the
mortgage market are likely to be both variable and, on
average, higher over the coming decade than in the recent
past.
- The data with regard to the sustainability of Australian house
prices are ambiguous, with the run-up in prices over the past
decade only partially explained by fundamentals. Moody's
considers the possibility of major regional house price drops
to be a material risk for the Australian market.
- Elevated mortgage debt levels point to vulnerability within
the Australian financial system. The mortgage market's
robustness to an adverse economic shock has not been tested at
current levels of indebtedness, with the recent experience of
other countries positing some questions in this regard.
Taken together, these factors expose Genworth Australia to
adverse shocks in the Australian housing market and act as
somewhat of a constraint on its overall rating profile.
The outlook for the rating of Genworth Australia remains
negative.
Genworth Indemnity ceased writing new business in 2003, and is
running off its existing book of business. The company is
characterized by the seasoned nature of its portfolio and strong
regulatory capital levels. The outlook for Genworth Indemnity's
rating is stable.
Moody's ratings of Genworth's US businesses are not part of this
rating action.
The principal methodology used in this rating was "Moody's Global
Rating Methodology for the Mortgage Insurance Industry",
published in February 2007.
PERPETUAL TRUSTEE: 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 2011-4US Trust.
Issuer: SMART Series 2011-4US Trust
-- US$100.0 million Class A-1 Notes, Assigned (P)P-1 (sf);
-- US$158.0 million Class A-2 Notes, Assigned (P)Aaa (sf);
-- US$161.0 million Class A-3 Notes, Assigned (P)Aaa (sf);
-- US$81.0 million Class A-4 Notes, Assigned (P)Aaa (sf);
-- AUD11.35 million Class B Notes, Assigned (P)Aa3 (sf);
-- AUD15.61 million Class C Notes, Assigned (P)A2 (sf);
-- AUD14.19 million Class D Notes, Assigned (P)Baa2 (sf);
-- AUD12.77 million Class E Notes, Assigned (P)Ba2 (sf).
The AUD 8.51 million Seller Notes are not rated by Moody's.
The Class A-1 Notes will be fixed rate notes. The Class A-2,
Class A-3 and Class A-4 Notes may be offered as either fixed or
floating rate notes. Where the Class A-2, Class A-3 and Class A-4
fixed and floating rate notes are offered, the notes will be
issued as Class A-2a, Class A-2b, Class A-3a, Class A-3b, Class
A-4a and Class A-4b respectively.
The transaction is a securitization of a portfolio of Australian
novated leases, commercial hire purchase agreements, chattel
mortgages and finance leases secured by motor vehicles,
originated by Macquarie Leasing Pty Limited ("Macquarie").
"This is the fourth ABS transaction issued by Macquarie so far in
2011 and is their third ABS transaction targeted at the US market
this year," says Treasa Boyle, Moody's lead analyst for the
transaction.
Ratings Rationale
In broad terms, SMART Series 2011-4US Trust replicates structures
seen in previous SMART transactions sponsored by Macquarie, and
closely follows the structure seen in SMART Series 2011-2US
Trust. However, in the SMART 2011-4US transaction the Class B
Notes, Class C Notes and Class D Notes have extra subordination
of 0.25% and the Class E Notes have extra subordination of 0.5%
compared to the same Class of Notes in SMART 2011-2US. Notable
features of the transaction include the conservative composition
of the receivables pool backing the transaction, the US$-
denominated senior notes and the pro-rata principal repayment
profile.
The pool includes a relatively high percentage of novated leases
(61%). 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. At the same time, the deal is exclusively backed
by motor vehicles, predominantly cars. Past non-US SMART
transactions and other Australian ABS transactions typically
include 10-15% of other equipment types. 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 2011-4US Trust pool as more conservatively structured than
peer portfolios.
In order to fund the purchase price of the portfolio, the Trust
will issue up to twelve classes of notes. The notes will be
repaid on a sequential basis in the initial stages (until the
subordination percentage increases from the initial 11.0% to
18.9%, and from 12.0% to 19.9% including the liquidity reserve)
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 a minimum of four (and up to seven in the
event both fixed and floating rate notes are issued) senior, US$-
denominated tranches. The Class A-1 Notes are fast-pay money-
market notes, rated P-1. The Class A Notes will be repaid
sequentially within the Class A Note allocation. The ratings are
based on the credit enhancement provided by the subordinated
notes and the liquidity reserve, in total equal to 12% for the
Class A Notes.
An unusual feature of this and previous US$-denominated SMART
transactions is that the maturity dates of the Class A Notes were
set not with reference to the maturity of the longest dated
receivable but rather with reference to the scheduled principal
amortization 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 notes in
its assessment of the likelihood of their repayment and believes
scheduled principal amortization to be sufficient to repay the
Class A Notes by the maturity dates in full.
Moody's base case assumptions are a default rate of 1.80% and a
recovery rate of 40%. These imply a expected (net) loss of 1.08%.
Both the default rate and the recovery rate have been stressed
relative to observed historical levels of 1.31% and 55.09%
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. Also,
in terms of alignment of interest, Moody's assigns a low rather
the sector average of low/medium as Macquarie retains a
significant proportion of the transaction, better aligning
incentives. This allows Moody's to have a material degree of
comfort with regard to assumptions made in rating the SMART
Series 2011-4US 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 2011-4US Trust, the Class A Notes
remain strongly investment grade and typically Aa when the
default rate rises to 3.60% (double of Moody's assumption of
1.80%). Similarly, Aaa ratings are maintained when the base
recovery rate is stressed from the assumed 40% to 20% (holding
other factors, including the assumed default rate of 1.80%
constant). Where the default rate assumption doubles and the
recovery rate assumption halves, the rating drops to A1.
Rating Methodology
The principal methodology used in this rating was "Moody's
Approach to Rating Australian Asset-Backed Securities", published
in July 2009.
* AUSTRALIA: Corporate Insolvency Figures Continue to Rise
----------------------------------------------------------
Patrick Stafford at SmartCompany reports that the number of
companies entering insolvency or external administration has
continued to rise, in one of the worst years for corporate
collapses in decades as the ATO continues to crack down on its
debtors.
According to SmartCompany, the data comes just days after the ATO
itself released its annual report in which it revealed the number
of ATO-initiated wind-up notices has also continued to rise.
SmartCompany relates that the data shows for the three months to
September 30, there were 2,961 externally appointed
administrations, up by 11.5% from the previous quarter, and up by
a massive 18.3% from the same point in 2010.
There has now been two consecutive quarters where appointments
have been over 2,600, according to the report. The only other
time this has happened was in the quarter ending December 2008,
and for the calendar year, the number of companies entering
external administration was up 9.6% from last year, SmartCompany
notes.
SmartCompany discloses that creditor-initiated court liquidations
were up 33.7%, with receivership appoints up 12.7% -- the
Australian Securities and Investments Commission said this gels
with evidence from practitioners that the ATO is continuing to
strike down on its debt recovery plans.
=========
C H I N A
=========
CDC CORP: Taps Finley Colmer as Chief Restructuring Officer
-----------------------------------------------------------
CDC Corp. asks the U.S. Bankruptcy Court for the Northern
District of Georgia for authority to employ Finley Colmer and
Company and its designated consultant, Marcus A. Watson as chief
restructuring officer.
On Oct. 24, 2011, the Debtor entered into an agreement with
Finley Colmer whereby Finley Colmer agreed to provide to Debtor
consulting and advisory services and assist Debtor in its Chapter
11 bankruptcy case. The Agreement provides that Mr. Watson, as
Chief Restructuring Officer, will oversee the operation and
management of Debtor's bankruptcy case.
Finley Colmer did not receive a retainer for any post-petition
work.
During the pendency of the bankruptcy case, Finley Colmer, and
Mr. Watson in particular, will provide managerial services and
oversight as outlined in the Agreement, thereby assisting the
Debtor's efforts at maximizing value for the benefit of the
Debtor's estate.
The Debtor proposed to pay Finley Colmer $11,000 per week for the
services. With the exception of out-of-pocket travel related
costs, Finley Colmer does not charge for copying, long distance
telephone, and other overhead related fees. Finley Colmer does
not charge for travel time.
Neither Finley Colmer nor Mr. Watson (a) has any present
connection with Debtors, Debtors' creditors, or other parties-in-
interest or (b) holds or represents any interest adverse to the
estate. Finley Colmer and Mr. Watson thus are disinterested
within the meaning of 11 U.S.C. Sec 101(14) of the Bankruptcy
Code.
About CDC Corp
Based in Atlanta, CDC Corp. (Nasdaq: CHINA) --
http://www.cdccorporation.net/-- is the parent company of CDC
Software (Nasdaq: CDCS). CDC Software is based dually in
Shanghai, China, and Atlanta and produces enterprise software
applications, IT consulting services, outsourced applications
development and IT staffing. The company's owners include Asia
Pacific Online Ltd., Xinhua News Agency and Evolution Capital
Management.
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 as of the
Chapter 11 filing.
CDC CORP: Seeks to Employ Lamberth Cifelli as Counsel
-----------------------------------------------------
CDC Corp. asks the U.S. Bankruptcy Court for the Northern
District of Georgia for authority to employ Lamberth, Cifelli,
Stokes, Ellis & Nason, P.A., as counsel.
As the Debtor's counsel, Lamberth Cifelli will, among other
things:
(a) advise, assist, and represent the Debtor with respect to
the Debtor's rights, powers, duties, and obligations in
the administration of this case, and the collection,
preservation, and administration of assets of the Debtor's
estate;
(b) advise, assist, and represent the Debtor with regard to
any claims and causes of action which the estate may have
against various parties including, without limitation,
claims for preferences, fraudulent conveyances, improper
disposal of assets, and other claims or rights to recovery
granted to the estate; to institute appropriate
adversary proceedings or other litigation and to represent
the Debtor therein with regard to such claims and causes
of action; and to advise and represent the Debtor with
regard to the review and analysis of any legal issues
incident to any of the foregoing;
(c) advise, assist, and represent the Debtor with regard to
investigation of the desirability and feasibility of the
rejection or assumption and potential assignment of any
executory contracts or unexpired leases, and to advise,
assist, and represent the Debtor with regard to liens and
encumbrances asserted against property of the estate and
potential avoidance actions for the benefit of the estate,
within the Debtor's rights and powers under the Bankruptcy
Code, and the initiation and prosecution of appropriate
proceedings in connection therewith;
(d) advise, assist, and represent the Debtor in connection
with all applications, motions, or complaints concerning
reclamation, sequestration, relief from stays, disposition
or other use of assets of the estate, and all other
similar matters; and
(e) advise, assist, and represent the Debtor with regard to
the preparation, drafting, and negotiation of a plan of
reorganization or liquidation and accompanying disclosure
statement, or negotiation with other parties presenting
a plan of reorganization or liquidation and accompanying
disclosure statement; and/or to advise, assist, and
represent the Debtor in connection with the sale or other
disposition of any assets of the estate, including without
limitation the investigation and analysis of the
alternative methods of effecting same; employment of
auctioneers, appraisers, or other persons to assist with
regard thereto; negotiations with prospective purchasers
and the evaluation of any offers received; the drafting of
appropriate contracts, instruments of conveyance, and
other documents with regard thereto; the preparation,
filing, and service as required of appropriate motions,
notices, and other pleadings as may be necessary to comply
with the Bankruptcy Code with regard to all of the
foregoing; and representation of the Debtor in connection
with the consummation and closing of any such
transactions.
On Oct. 3, 2011, LCSEN received $76,014.00 prior to the filing to
hold as a retainer as set forth in the Bankruptcy Rule 2014
Verification. The source of the funds was a loan from a trust
established for the benefit of Peter Yip's spouse and his
children to Chinadotcom Finance Corporation Limited which
transferred the funds to LCSEN. Debtor owns 100% of CDC
Strategic Corporation, which is registered in the Caymans and
owns 100% of Chinadotcom Finance Corporation Limited, which is
registered in Hong Kong. Mr. Yip is the Debtor's Chief Executive
Officer, currently in administrative leave from that position,
and is a member of the Debtor's board of directors.
About CDC Corp
Based in Atlanta, CDC Corp. (Nasdaq: CHINA) --
http://www.cdccorporation.net/-- is the parent company of CDC
Software (Nasdaq: CDCS). CDC Software is based dually in
Shanghai, China, and Atlanta and produces enterprise software
applications, IT consulting services, outsourced applications
development and IT staffing. The company's owners include Asia
Pacific Online Ltd., Xinhua News Agency and Evolution Capital
Management.
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 as of the
Chapter 11 filing.
SHENGDATECH INC: U.S. Trustee Adds 4 Members to Creditor's Panel
----------------------------------------------------------------
August B. Landis, United States Trustee for Region 17, under 11
U.S.C. Sec. 1102(a) and (b), added four new members -- Donald D.
Yaw, Advent Capital Management, LLC, Daiwa America Strategic
Advisors Corporation, CQS Asia Master Fund Limited -- to serve on
the Official Committee of Unsecured Creditors of ShengdaTech,
Inc.
The Creditors Committee now consists of:
1. AG OFCON, LLC
Represented by: Timothy A. Hutfilz
245 Park Avenue, 26th Floor
New York, NY 10167
Tel: (212) 692-2016
Fax: (212) 867-6395
E-mail: thutfilz@angelogordon.com
2. THE BANK OF NEW YORK MELLON
as Indenture Trustee
One Canada Square
London E145A
United Kingdom
Represented by: Mark Jeanes
BNY Mellon
6525 West Campus Oval
New Albany, OH 43054
Tel: (207) 964-4468
Fax: (207) 964-2536
E-mail: mark.jeanes@bnymellon.com
3. ZAZOVE ASSOCIATES, LLC
Represented by: Mario Valente
1001 Tahoe Blvd.
Incline Village, NV 89451
Tel: (775) 886-1500
Fax: (775) 886-1599
E-mail: mvalente@zazove.com
4. DONALD D. YAW
336834 E. 950 Road
Wellston, OK 74881
Tel: (405) 356-0219
Fax: (405) 488-7415
E-mail: donyaw@hotmail.com
Represented by: Mario Alba, Jr.
Robbins, Geller, Rudman & Dowd, LLP
58 South Service Road, Ste. 200
Melville, NY 11714
Tel: (631) 367-7100
E-mail: malba@rgrdlaw.com
5. ADVENT CAPITAL MANAGEMENT, LLC
Robert Schwartz
1271 6th Ave., 45th Floor
New York, NY 10020
Tel: (212) 482-7390
Fax: (212) 480-9644 fax
6. DAIWA AMERICA STRATEGIC ADVISORS CORPORATION
32 Old Slip
New York, NV 10005
Tel: (212) 612-6272
Fax: (212) 612-8433
Represented by: Joshua Goodman, Esq.
Tel: (212) 612-6272
E-mail: Joshua.Goodman@us.daiwacm.com
7. CQS ASIA MASTER FUND LIMITED
P.O. Box 309
135 South Church Street
Grand Cayman KY1-1104
Cayman Islands
Represented by: Anna Tham
CQS (Hong Kong) Limited
15-08 Two Exchange Square
Central Hong Kong (SAR), China
Tel: (852)3920-8608
E-mail: anna.tham@CQS.com.hk
About ShengdaTech, Inc
Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano
precipitated calcium carbonate for the tire industry.
ShengdaTech converts limestone into nano-precipitated calcium
carbonate (NPCC) using its proprietary and patent-protected
technology. NPCC products are increasingly used in tires, paper,
paints, building materials, and other chemical products. In
addition to its broad customer base in China, the Company
currently exports to Singapore, Thailand, South Korea, Malaysia,
India, Latvia and Italy.
ShengdaTech sought Chapter 11 bankruptcy protection from
creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in
Reno, Nevada, in the United States.
The Shanghai-China based company said in its bankruptcy filing it
would fire all of its officers and restructure to try to recover
from an accounting scandal.
The Company disclosed US$295.4 million in assets and US$180.9
million in debt as of Sept. 30, 2011.
The Company's legal representative in its Chapter 11 case is
Greenberg Traurig, LLP. On Aug. 23, 2011, the Court entered an
interim order confirming the Board of Directors Special
Committee's appointment of Michael Kang as the Debtor's chief
restructuring officer.
Alvarez & Marsal North America, LLC, is the Company's chief
restructuring officer.
As reported in the TCR on Sept. 7, 2011, the United States
Trustee appointed AG Ofcon, LLC, The Bank of New York, Mellon (in
its role as indenture trustee for bondholders), and Zazove
Associates, LLC, to serve on the Official Committee of Unsecured
Creditors of ShengdaTech, Inc.
================
H O N G K O N G
================
ACTIVE-7 OPTICAL: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on Oct. 26, 2011, to
wind up the operations of Active-7 Optical & Electrical Holdings
(HK) Factory Limited.
The official receiver is Teresa S W Wong.
AGP (ASIA): Court to Hear Wind-Up Petition on Dec. 21
-----------------------------------------------------
A petition to wind up the operations of AGP (Asia) Limited will
be heard before the High Court of Hong Kong on Dec. 21, 2011, at
9:30 a.m.
Lui Yat Long filed the petition against the company on Oct. 18,
2011.
The Petitioner's solicitors are:
Yip, Tse & Tang
Units C-E, 20th Floor
China Overseas Building
No. 139 Hennessy Road
Wanchai, Hong Kong
H.K. CASHMERE: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on Oct. 26, 2011, to
wind up the operations of H.K. Cashmere Knitting Factory Limited.
The official receiver is Teresa S W Wong.
LAND INTERNATIONAL: Court Enters Wind-Up Order
----------------------------------------------
The High Court of Hong Kong entered an order on Oct. 26, 2011, to
wind up the operations of Land International Trading Limited.
The official receiver is Teresa S W Wong.
NEW COLOR: Yiu and Lai Appointed as Liquidators
-----------------------------------------------
Yiu Cho Yan and Lai Jacqueline on Oct. 10, 2011, were appointed
as liquidators of New Color International Limited.
The liquidators may be reached at:
Yiu Cho Yan
Lai Jacqueline
Room 1702, Asian House
1 Hennessy Road
Wanchai, Hong Kong
SEC LIMITED: Court to Hear Wind-Up Petition on Nov. 23
------------------------------------------------------
A petition to wind up the operations of SEC Limited will be heard
before the High Court of Hong Kong on Nov. 23, 2011, at 9:30 a.m.
Kelvin Cheung & Co filed the petition against the company on
Sept. 16, 2011.
The Petitioner's solicitors are:
Kelvin Cheung & Co
Unit 101, 1st Floor
Hong Kong Trade Centre
161-167 Des Voeux Road
Central, Hong Kong
SUN RISING: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on Oct. 26, 2011, to
wind up the operations of Sun Rising Development (Agriculture)
Limited.
The official receiver is Teresa S W Wong.
TOP FANCY: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on Oct. 26, 2011, to
wind up the operations of Top Fancy Enterprise Limited.
The official receiver is Teresa S W Wong.
WING HUNG: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on Oct. 26, 2011, to
wind up the operations of Wing Hung Kniwear Garment Factory
Limited.
The official receiver is Teresa S W Wong.
ZTEE ELECTRONICS: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on Oct. 26, 2011, to
wind up the operations of Ztee Electronics (International) Co.,
Limited.
The official receiver is Teresa S W Wong.
=========
I N D I A
=========
BUDGE BUDGE: Inadequate Info Cues Fitch to Migrate Low-B Rating
---------------------------------------------------------------
Fitch Ratings has migrated India-based Budge Budge Refineries
Limited's 'Fitch BB-(ind)' National Long-Term rating to the "Non-
Monitored" category. This rating will now appear as 'Fitch BB-
(ind)nm' on the agency's website.
The ratings have been migrated to the "Non-Monitored" category
due to lack of adequate information, and Fitch will no longer
provide ratings or analytical coverage of BBRL. The ratings will
remain in the "Non-Monitored" category for a period of six months
and be withdrawn at the end of that period. However, in the
event the issuer starts furnishing information during this six-
month period, the ratings could be re-activated and will be
communicated through a "Rating Action Commentary".
Fitch has simultaneously classified BBRL's following ratings as
"Non-Monitored":
-- INR91.2 million long-term loans: migrated to 'Fitch BB-
(ind)nm' from 'Fitch BB-(ind)'
-- INR50 million fund-based limits: migrated to 'Fitch BB-
(ind)nm' from 'Fitch BB-(ind)'
-- INR803 million non-fund based limits: migrated to 'Fitch
A4+(ind)nm' from 'Fitch A4+(ind)'
DELTA CONSTRUCTION: Liquidity Status Cues Fitch to Lower Ratings
----------------------------------------------------------------
Fitch Ratings has downgraded India-based Delta Construction
Systems Limited's National Long-Term rating to 'Fitch BB-(ind)'
from 'Fitch BB(ind)' with a Stable Outlook. A list of additional
rating actions is provided at the end of this commentary.
The downgrade reflects Delta's tight liquidity situation and the
significant increase in its receivables, as reflected in full
utilization of working capital limits in the recent past and a
letter of credit devolvement in August 2011. The company had
cash and cash equivalents of INR8.9 million in the financial
ended March 2011 (FY10: INR5.3 million) and its receivables days
increased to 115 days in FY11 from 48 days in FY09 due to delays
in payments from its customers.
The ratings, however, draw strength from Delta's technical
expertise in the infrastructure sector, improving EBIDTA margins
and satisfactory credit metrics. The company had a moderate
order book of INR768 million (1.3x of FY11 revenue) at end-August
2011.
Negative rating action may result if the liquidity situation
worsens or if debt/EBITDA exceeds 3.0x on a sustained basis.
Conversely, positive rating action may result if the liquidity
situation improves and there is a sustained fall in its
debt/EBITDA to below 2.0x.
Delta provides engineering services for underground construction,
irrigation, mining and other infrastructure projects. Its
present order book primarily comprises sub-contracts (70%) and
direct orders (30%, including mining-related works). In FY11,
Delta had a turnover of INR585 million (FY10: INR596 million), an
EBITDA of INR84.3 million (INR79.4 million), an EBIDTA margin of
14.4% (13.3%) and debt/ EBITDA of 1.77x (1.52x). In H1FY12, the
company reported revenue of INR180 million (H1FY11: INR240
million).
Rating actions on Delta's bank facilities are as follows:
-- INR40 million fund-based working capital limits: downgraded
to 'Fitch BB-(ind)' from 'Fitch BB(ind)'
-- INR225 million non-fund based working capital limits:
affirmed 'Fitch A4+(ind)'
FORACE POLYMERS: CARE Places 'CARE B+' Rating on INR11.06cr Loan
----------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' the ratings to the bank
facilities of Forace Polymers Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 11.06 CARE B+ Assigned
Short-term Bank Facilities 7.50 CARE A4 Assigned
Long/Short-term Bank 50.50 CARE B+/CARE A4
Facilities Assigned
Rating Rationale
The ratings are constrained by weak financial risk profile,
working-capital intensive operations, intense competition from
the domestic and international players, foreign exchange
fluctuation risk and project implementation risk. However, the
ratings constraints are partially mitigated by relevant
experience of the promoters in the industry, diversified customer
base and better demand outlook for phenolic resins on the back of
growth in its usage in India.
Going forward, ability of Forace Polymers Pvt Ltd (FPPL) to
scale-up its operations with improvement in profitability
margins, effective management of working capital and timely
completion of the ongoing project would be the key rating
sensitivities.
About Forace Polymers
Forace Polymers Pvt Ltd was established in 1980 by the late
Mr. S.K. Garg. The company is engaged in the production of
phenolic resins, catalysts and hardeners having applications in
Foundry, Refractory, Abrasives, Friction and Rubber Industry.
FPPL is now being managed by Mr. Vikas Garg, son of the late
Mr. S.K.Garg.
FPPL's installed capacity of phenolic resins and
hardeners/catalyst was 20,240 Metric Tonne Per Annum (MTPA) as on
June 30, 2011. It has undertaken an expansion project to increase
the capacity to 35,000 MTPA. The total estimated project cost of
INR11 crore is proposed to be funded through a debt equity mix of
3:1. The debt has already tied up. The expected COD of the
project is February 2012 and as of August31, 2011, FPPL had
achieved around 25% completion.
GREEN FIELD: CARE Assigns 'CARE BB' Rating to INR6.01cr Loan
------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Green Field Material Handling Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 6.01 CARE BB Assigned
Short-term Bank Facilities 0.60 CARE A4 Assigned
Rating Rationale
The ratings of Green Field Material Handling Pvt. Ltd. are
constrained by its financial profile characterized by relatively
small scale of operations, moderate and fluctuating
profitability, high leverage and stretched liquidity position
with very high working-capital utilization. The ratings are
further constrained by project execution risk, absence of long-
term selling as well as sourcing arrangements and forex risk.
These constraints far outweigh the benefits derived from
reasonable level of experience of its promoters in the field of
material handling along-with their financial support in the past
and growth in operations.
GFMHPL's ability to increase its scale of operations along with
improvement in the overall financial risk profile and successful
completion as well as operationalisation of the solar project are
the key rating sensitivities.
Background
Green Field Material Handling Pvt. Ltd., an ISO 9001-2000
certified company, was promoted by Mr. Uttam Chaudhari. During
FY08, GFMHPL came into existence with the merger of three
entities viz. M/s Green Field Industries and Akash Wire Drawing
Dies and Green Field Agro Equipments. Currently, GFMHPL is
engaged in the business of material handling and lifting products
(polyester slings) and also offers various agro-equipment (mainly
assembled diesel engines). During FY11 (refers to April 1 to
March 31), revenue from polyester slings contributed 54% of the
total sales while balance was from diesel engines. The company
generates its revenue almost entirely from the domestic market
and its plant is located at Ambernath, Maharashtra. GFMHPL is
currently implementing a project to manufacture solar panel and
solar water heating equipments.
During FY11 (refers to April 1 to March 31), GFMHPL reported a
total operating income of INR26.03 crore and a PAT of INR1.33
crore as against the total operating income of INR16.33 crore and
net profit of INR0.83 crore in FY10.
INDIA REFINERY: ICRA Assigns '[ICRA]BB' Rating to INR1.2cr Loan
---------------------------------------------------------------
ICRA has assigned '[ICRA]BB' rating to the INR1.20 crore term
loan facilities, INR0.30 crore proposed limits and the INR10.00
crore fund based facilities of Nakoda India Refinery Private
Limited. The outlook on the long term rating is stable. ICRA has
also assigned '[ICRA]A4+' rating to the INR3.50 crore non-fund
based facilities and the INR50.00 crore proposed non fund based
facilities of NIRPL.
The assigned ratings take into account the long standing presence
of the promoters in the industry, the Company's established
relationship with its customers and positive demand outlook for
gold and silver (both as jewellery and investment options)
supporting revenue growth. ICRA notes that NIRPL's order based
procurement mechanism aids low inventory holding levels thereby
mitigating price risk to an extent. The ratings also take into
account thin margins of the Company by virtue of trading nature
of operations and NIRPL's financial risk profile characterized by
moderate gearing, modest debt coverage metrics and stretched cash
flow position. However, the Company's planned foray into
manufacturing of gold jewellery and silver articles are expected
to support margin expansion going forward. Moderately high
customer concentration, with top five customers accounting for
over 80 per cent of NIRPL's revenues, exposes the Company to
significant risks of order volatility.
About India Refinery
Incorporated in 2006, Nakoda India Refinery Private Limited is
primarily engaged in trading and manufacturing of gold and silver
bars and coins. Promoted by Mr. Sanghvi D Moolchand in 1989,
"Nakoda & Co" was initially engaged in the trading of gold and
silver jewellery till 2002 post which the firm ventured into
bullion trading. In 2010-11 the Company set up its own
manufacturing facility and has commenced manufacturing of gold
and silver bars and coins from January 2011. Currently the
product profile of NIRPL comprises of silver bars of weight 500
gms and 1 kg and gold bars of 100gms, 250gms and 500 gms. The
Company also manufactures gold coins with weights of 1 gm, 5 gms,
8 gms, 12 gms and 20 gms and silver coins 5 gms, 10 gms, 20 gms
to 1 kg.
Recent Results:
During 2010-11, the Company has reported a profit after tax of
INR2.6 crore on operating income of INR1512.6 crore, against,
profit after tax of INR1.3 crore on operating income of INR1390.1
crore during 2009-10.
KUMAR ARCH: CARE Assigns 'CARE BB-' Rating to INR10cr LT Loan
-------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank
facilities of Kumar Arch Tech Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 10.00 CARE BB- Assigned
Short-term Bank Facilities 6.00 CARE A4 Assigned
Long-term/Short-term Bank 8.00 CARE BB-/CARE A4
Facilities Assigned
Rating Rationale
The ratings are constrained on account of the weak financial risk
profile of Kumar Arch Tech Private Limited marked by very thin
profitability margins and stressed liquidity position.
Susceptibility to raw material price fluctuation, high degree of
supplier concentration risk, presence in the fragmented PVC sheet
industry with linkages to the cyclical real estate industry as
well as project risk associated with its ongoing expansion
project wherein there have already been cost as well as time
overruns further constrain the ratings.
The ratings, however, favorably factor in the vast experience of
the promoters in the PVC sheets business as well as the company's
fairly comfortable capital structure.
KATPL's ability to complete the ongoing expansion project without
any further time and cost overrun along-with quick stabilization
of operations and improvement in the profitability margins
would be the key rating sensitivities.
Udaipur based KATPL, incorporated in February, 1998, is promoted
by Mr. Vijay Lal Agarwal and Ms Kanta Agarwal. KATPL is engaged
in the business of manufacturing of Poly-vinyl Chloride (PVC)
sheets and doors and has three operational units located at the
Gudli Industrial Area of Udaipur. KATPL has a total installed
capacity for producing 5,100 MTPA PVC sheets as on March 31,
2011. It sells PVC sheets in the domestic market as well as
exports it to the overseas markets particularly to USA, UK, Italy
and Turkey. Exports comprised about 14% of the company's total
operating income in FY11 (refers to April 1 to March 31).
MARIS HOTEL: ICRA Reaffirms '[ICRA]BB+' Rating to INR4.4cr Loan
---------------------------------------------------------------
ICRA has reaffirmed the long-term rating outstanding on the
INR4.40 crore term loan of Maris Hotel & Theatres Private Limited
at [ICRA]BB+. The outlook on the long-term rating is stable.
The rating reaffirmation takes into consideration the long
standing presence in the hotel business, established client base
and favorable location in Chennai supporting high occupancy
levels and a healthy financial profile characterized by moderate
gearing and comfortable liquidity position. However, the rating
remains constrained by the small scale of operations with limited
growth potential on the back of lack of any major growth plans,
high geographical concentration on a single property and the
financial support extended to group companies which is expected
to increase
going forward.
About Maris Hotels
Maris Hotels and Theatres Private Limited was started by Mr. M
Rengaswamy who is the current Managing Director of the company.
His son Mr. Anand Kumar is the Joint Managing Director of the
company. Mr. T Raghuam, a cousin of Mr. Anand Kumar is the third
director in the company. The promoters of the company come from a
tea plantation family. Besides MHTPL, the promoters also have
interests in textile and tea business through other group
companies.
MHTPL owns a single hotel -- Hotel Maris located at Cathedral
Road in Chennai. Started in 1975, the hotel is located in an area
of around 12,400 square feet with 9 floors and an inventory of 70
rooms. The hotel currently does not have a Department of Tourism
(DOT) rating, and has recently applied to DOT for a three-star
rating. With ARRs of around INR1,844 (for 2010-11) the hotel
mainly caters to businessmen, tourists and politicians. The
company also owns one wind-mill each at Tirunelveli, Tamil Nadu,
with a capacity of 2,750 KW and Udumalpet, Tamil Nadu, with a
capacity of 1,650 KW.
Recent Results:
MHTPL reported net profit of INR0.3 crore on operating income of
INR7.8 crore during 2010-11, against net profit of INR2.2 crore
on operating income of INR7.0 crore during 2009-10.
MARIS SPINNERS: ICRA Cuts Rating on INR12.49cr Loan to [ICRA]BB-
----------------------------------------------------------------
ICRA has revised the long-term rating outstanding on the INR12.49
crore term loan facilities and the INR19.50 crore fund based
facilities of Maris Spinners Limited from '[ICRA]BB' to
'[ICRA]BB-'. ICRA has reaffirmed the short-term rating at
[ICRA]A4 on the INR4.50 crore fund based facilities and the
INR5.50 crore non-fund based facilities of MSL. The outlook on
the long-term rating is stable.
The rating revision takes into consideration the stretched
financial profile of the company characterized by high gearing,
inadequate coverage indicators and strained liquidity position.
The financial position is expected to deteriorate further in the
current fiscal on account of the weak operating environment
prevailing in the cotton yarn industry which has resulted in
lower volumes and sharp fall in realizations. The same coupled
with the use of high cost inventory procured during the end of
last fiscal year for the production of yarn has resulted in
losses in the current fiscal. The ratings also consider the high
working capital intensity in the business, intense competition
and the product profile skewed towards highly commoditized low to
medium counts limiting pricing flexibility.
The rating also considers the experience of the promoters, the
long standing relationship with the customers which is likely to
support the volumes of the company to an extent and the financial
support extended by group companies, especially Maris Hotels and
Theatres Private Limited (rated [ICRA]BB+/Stable). Further, the
existences of value-added facilities like yarn twisting, and the
recent addition of capacity to manufacture higher counts are
expected to support margins over the medium term.
About Maris Spinners
Maris Spinners Limited was originally incorporated as a private
limited company on 18th September, 1979. However, from July 1994,
the company became a deemed Public Limited Company under the
Companies Act, 1956. The company was started by Mr. M Rengaswamy
who belongs to a family with interest in tea plantation. His son
Mr. Anand Rengaswamy is the current Managing Director of the
company. The Company commenced commercial production in 1981 with
an installed capacity of 11,856 spindles. Located in the Mysore
district of Karnataka and Tiruchirapalli district of Tamilnadu,
MSL's spinning units currently have a combined installed capacity
of 44,832 spindles manufacturing 100% cotton combed yarn of
counts 30s, 40s, 60s and 80s. The company mainly caters to the
domestic market. MSL also operates two windmills with a combined
capacity of 2.85 mega-watts located in the Kanyakumari district
in Tamil Nadu and Devangere district in Karnataka. Besides MSL,
the promoters of the company are also involved in tea
manufacturing through Havukal Tea & Produce Company Private
Limited and hotel business through Maris Hotels and Theatres
Private Limited, which owns the Maris Hotel, located in Chennai.
MATHIYAN CONSTRUCTION: CARE Rates INR4cr Loan at 'CARE BB-'
-----------------------------------------------------------
CARE assigns 'CARE BB-/A4' ratings to the bank facilities of
Mathiyan Construction Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 4.00 CARE BB- Assigned
Short-term Bank Facilities 16.00 CARE A4 Assigned
Rating Rationale
The ratings are constrained by small-scale of operations,
geographical and client concentration risks, high overall gearing
and high working-capital intensity of operations. However, the
ratings draw comfort from the experienced promoters and revenue
growth achieved in the past. Going forward, the company's ability
to get new contracts and timely execution of the same while
managing capital requirements efficiently, shall be the key
rating sensitivities.
Mathiyan Construction Pvt. Ltd., incorporated in 2007, is a
regional player executing road construction and maintenance
projects awarded by PWD, UP. The area of operation is
concentrated in select districts of UP like Muzaffarnagar,
Bijnor, Rampur. MCPL is registered with PWD U.P. as Class 'A'
contractor and as Class 'AA' contractor with Irrigation
Department, Meerut Circle.
For FY11 (refers to April 1 to March 31), MCPL achieved a total
operating income of INR68.0 cr with the PBILDT and PAT margins of
8.31% and 3.55% respectively.
NEEPAZ V FORGE: Inadequate Info Cues Fitch's Low-B Ratings
----------------------------------------------------------
Fitch Ratings has migrated India-based Neepaz V Forge (India)
Limited's 'Fitch B(ind)' National Long-Term rating to the "Non-
Monitored" category. This rating will now appear as 'Fitch
B(ind)nm' on the agency's website.
The ratings have been migrated to the "Non-Monitored" category
due to lack of adequate information, and Fitch will no longer
provide ratings or analytical coverage of NVFL. The ratings will
remain in the "Non-Monitored" category for a period of six months
and be withdrawn at the end of that period. However, in the
event the issuer starts furnishing information during this six-
month period, the ratings could be re-activated and will be
communicated through a "Rating Action Commentary".
Fitch has also migrated NVFL's bank loans to the non-monitored
category as follows:
-- INR1.1 billion long term loans: migrated to 'Fitch B(ind)nm'
from 'Fitch B(ind)'
-- INR240 million fund based limits: migrated to 'Fitch
B(ind)nm' from 'Fitch B(ind)'
-- INR173.6 million non-fund based limits: migrated to 'Fitch
A4(ind)nm' from 'Fitch A4(ind)'
RAJARAJAN & SONS: CARE Rates INR20.26cr at 'CARE BB'
----------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Rajarajan & Sons.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 20.26 CARE BB Assigned
Short-term Bank Facilities 3.50 CARE A4 Assigned
Rating Rationale
The ratings of Rajarajan & Sons are primarily constrained by its
below-average financial risk profile as indicated by the low
margins, high leverage and small scale of operation. The ratings
are also constrained by the constitution being partnership in
nature, limited products offering, supplier concentration risk
and high utilization of working capital borrowings. The ratings,
however, derives strength from the considerable experience of the
promoter, long track record of operation and established
position. Ability of R & Sons to scale up its level of operation,
improve profitability margins and demand prospects for vehicles
shall be the key rating sensitivities.
About Rajarajan & Sons
Rajarajan & Sons was established as a partnership firm in
November 2006 by Mr. K. Rajarajan and Mrs. T. Comady (wife of
Mr. K. Rajarajan). The firm is an authorized dealer of Mahindra &
Mahindra Limited (MML) for car, jeep, pick-up vans, three
wheelers and heavy vehicles for the district of Cuddalore in
Tamil Nadu and Union Territory of Pondicherry. It has sales
outlets including service station at each of the locations. It
also offers spare parts and after sales services (repair and
refurbishment) for MML vehicles. The dealership agreement is
renewable every two years and it has been renewed regularly in
the past. The firm is managed by Mr. K. Rajarajan, who is
associated with this business for the last five years. He has
about 25 years of experience in
dealership business and provides overall guidance to the firm.
SANSKAR AGRO: Fitch Puts Rating on Nat'l Long-Term at 'B+(ind)'
---------------------------------------------------------------
Fitch Ratings has assigned India's Sanskar Agro Processors (Pvt)
Ltd a National Long-Term rating of 'Fitch B+(ind)' with Stable
Outlook. The agency has also assigned Sanskar's INR157.1 million
term loan and INR102.5 million cash credit a 'Fitch B+(ind)'
rating.
The ratings reflect Sanskar's small scale of operations in the
highly fragmented textile yarn industry, inherent risk of
operating in a commodity market characterized by volatile cotton
prices and competitive pressures on pricing. The ratings also
reflect the company's high working capital requirements due to
largely seasonal raw material procurements, which resulted in
almost full utilization of working capital limits in the fourth
quarter of the financial year ended March 2011 (Q4FY11) and
Q1FY12. Sanskar's high debt levels (FY11: INR401.5 million,
FY10: INR330.2 million) are partly on account of the debt-led
capacity expansion in 2008.
Sanskar's net leverage (net debt/ operating EBITDA) increased to
6.18x in FY11 from 5.5x in FY10, driven by a decline in EBITDA
margins to 9% from 13% as the share of low-margin trading revenue
increased to 15% from 10%.
Positively, the ratings are supported by the two-decade-long
experience of Sanskar's founders, the company's modern
manufacturing facilities, manageable labor and electricity costs.
The company plans to improve margins over the medium term by
focusing on higher quality yarn mainly for export. The company
also benefits from its proximity to cotton-producing areas with
its plant located at Wardha in Maharashtra.
Negative rating guidelines would be net leverage exceeding 7x on
a sustained basis. Conversely, an improvement in revenue and
profitability resulting in net leverage falling below 5x on a
sustained basis may be positive for the ratings.
Sanskar was incorporated in 2003 and has a spinning mill with
14,400 spindles along with a ginning and oil extraction unit.
For FY11, Sanskar reported revenue of INR661.48 million (FY10:
INR428.81 million), an EBITDA of INR59.8 million (INR56.4
million) and interest cover of 2.41x (2.57x).
SPRING MERCHANDISERS: ICRA Puts '[ICRA]B' Rating on INR4cr Loan
---------------------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to the INR4.00 crore cash
credit facility of Spring Merchandisers Private Limited. ICRA
has also assigned an '[ICRA]A4') rating to the INR5.50 crore non-
fund based bank limits of SMPL. The total utilization of fund
based and non fund based limits should not exceed INR6.75 crore
at any point of usage.
The ratings consider SMPL's weak financial profile as reflected
in stretched liquidity position and low profitability and cash
accruals arising from the limited value addition in the business.
The ratings also take into account the risk of fluctuation in raw
material prices and foreign exchange rates as SMPL imports
majority of its raw material requirement. The ratings, however,
consider the experience of the promoters in the non ferrous metal
industry, diversified application of the end products and the
location advantage of being present in Daman (Union Territory)
wherein it accrues the benefit of Central Sales Tax exemption.
About Spring Merchandisers
Incorporated in 1995, SMPL is a private limited company and is
engaged in trading and manufacturing of non ferrous metals
(copper alloys ingots, copper ingots, brass alloys ingots, brass
ingots, aluminum alloys ingots and zinc ingots). The company has
a plant in Daman (Union Territory) with an installed capacity of
12,840 metric ton per annum (MTPA).
Recent Results:
SMPL recorded a net profit of INR0.84 crore on an operating
income of INR68.24 crore as per financials for the year ending
March 31, 2011.
SAURASHTRA FERROUS: ICRA Cuts Rating on INR7cr Loan to '[ICRA]C'
----------------------------------------------------------------
ICRA has downgraded the long-term rating assigned to the INR7.00
crore fund-based bank facilities, INR10.46 crore term loans and
INR4.52 crore working capital term loan facilities of Saurashtra
Ferrous Private Limited to '[ICRA]C' from 'LB'. ICRA has
reaffirmed the short-term rating assigned of the INR2.88 crore
non-fund based bank facilities of SFePL at '[ICRA]A4'.
The rating downgrade takes into account the tight liquidity
profile of SFePL on account of the closure of the company's plant
since April 2011 in the wake of iron ore unavailability and the
continuing uncertainty over restarting of plant operations, given
the ongoing mining restrictions imposed in the state of
Karnataka. The rating downgrade also takes into account the
current negative net worth of the company on account of continued
loss making operations in the last three years; leading to the
company's highly adverse capital structure and weak coverage
indicators, indicating an adverse financial risk profile. The
ratings are also constrained by the cyclicality inherent in the
pig iron prices making cash flows volatile; and the high customer
concentrations risks with the top 10 customers accounting for
over 84% of the total operating income in 2010-11. The ratings
however, favourably factor in the long experience of the
promoters in the iron and steel industry and the liquidity
support extended by the parent company Saurashtra Fuels Pvt Ltd
(rated [ICRA]B/[ICRA]A4).
About Saurashtra Ferrous
Incorporated in 2005 and promoted by SFPL, SFePL is a modest
sized pig iron manufacturer. The company has pig iron and cast
iron manufacturing capacities of 100,000 MTPA and 45,000 MTPA
respectively, which are located adjacent to the coke
manufacturing facilities of SFPL in Mundhra, Gujarat. The
company's pig iron sale is largely concentrated in the major
foundry hubs in the state of Gujarat. On account of
unavailability of iron ore, the manufacturing facility of SFePL
has been non-operational since April 2011.
Recent Results:
As per the audited results of 2010-11, SFePL reported a loss of
INR5.34 crore on an operating income of INR62.32 crore as
compared to a loss of INR2.65 crore on an operating income of
INR113.11 crore during 2009-10. As per the provisional results
for the first quarter of 2011-12, SFePL reported a loss of
INR1.88 crore on an operating income of INR15.15 crore.
SAURASHTRA FUELS: ICRA Reaffirms '[ICRA]B' Long-Term Rating
-----------------------------------------------------------
ICRA has reaffirmed the long-term rating assigned to the INR57.50
crore (earlier INR10.28 crore) fund-based bank facilities, the
INR49.21 crore term loans (earlier INR59.95) and the INR125.00
crore working capital term loan facilities of Saurashtra Fuels
Private Limited at '[ICRA]B'. ICRA has also reaffirmed the
short-term rating assigned to the INR70.14 crore (earlier
INR37.50 crore) non-fund based bank facilities of SFPL at
[ICRA]A4.
While reaffirming the ratings, ICRA took into consideration of
the weak business risk profile of one of its subsidiary,
Saurashtra Ferrous Pvt Ltd (rated [ICRA]C/[ICRA]A4), which
necessitates financial support from SFPL and in turn adversely
impacts its financial risk profile. The ratings also reflect the
status of the company being under a CDR expand package which
limits the company's operational flexibility.
The ratings also take into consideration SFPL's stretched capital
structure on account of the erosion of its net worth due to loss
making operations in 2008-09 and 2009-10; compulsory prepayment
of CDR loan in a scenario of high contribution levels achieved,
which would continue to exert pressure on SFPL's liquidity; and
expected pressure on SFPL's profitability in the near term, given
the current scenario of firm coking coal prices and declining
coke prices because of the weakness in the steel industry.
ICRA further notes that SFPL remains exposed to foreign currency
fluctuations risks as most of the raw material is procured
through imports, notwithstanding the natural hedge arising out of
increasing level of exports, and also to the cyclicality inherent
in the commodity prices, which is likely to make its cash flows
volatile. The ratings, however, favorably factor in SFPL's
significant improvement in operating performance in 2010-11 as
its production volumes improved significantly, leading to the
company turning profitable after suffering losses for two
consecutive years in the immediate past; and the high
contribution of exports (about 58% ) towards total sales in 2010-
11 which led to better realizations. ICRA also notes the large
scale of operations of SFPL which provides benefits of economies
of scale.
The ratings also take into account the long experience of SFPL's
promoters in the manufacturing and marketing of coke; significant
liquidation of the high cost inventory, purchased through fixed
price contracts entered in 2008-09, which is expected to support
profitability in the current financial year; and current
procurement of coking coal through quarterly contracts or on spot
basis, as against long term fixed price contracts entered into in
the past, which Is likely to impart higher flexibility to the
company to align its raw material and output prices.
About Saurashtra Fuels
Founded in December 1993, Saurashtra Fuels Private Limited is in
the business of manufacturing LAM coke used in the production of
pig iron. SFPL is promoted by Mr. Dipak Agarwalla and Mr. S K
Sinha. Operating out of two manufacturing locations at Mundra and
Porbandar in Gujarat, SFPL has a total capacity of about 1
million tonne per annum. The plant is based on the non-recovery
method of coke production.
Recent Results:
As per the audited results of 2010-11, SFPL reported a profit
after tax (PAT) of INR37.39 crore on an operating income of
INR1537 crore as compared to a loss of INR27.39 crore on an
operating income of INR543.69 crore during 2009-10. In the first
quarter of 2010-11 (April to June 2011), SFPL reported a profit
before tax of INR29.13 crore on an operating income of INR350.04
crore (provisional).
SYNTHETIC PACKERS: ICRA Reaffirms [ICRA]BB Rating to INR10cr Loan
-----------------------------------------------------------------
ICRA has reaffirmed long term rating of '[ICRA]BB' to the
INR10.40 crore fund based limits( enhanced from INR8.73 crore) of
Synthetic Packers Private Limited. ICRA has also reaffirmed the
short term rating of '[ICRA]A4' to the INR10.60 crore non fund
based limits ( enhanced from INR4.60 crore) of SPPL. The outlook
on the long term rating is stable.
The ratings continue to draw comfort from SPPL's long track
record in the polyfilm industry with an established presence of
close to three decades, its reputed and diversified client base
and its long term association with its customers translating into
repeat orders. The ratings also draw comfort from the healthy
revenue growth (-35%) witnessed by the company in FY 11. The
ratings are however constrained by SPPL's moderate scale of
operations as compared to the other players in the intensely
competitive packaging industry and its exposure to raw material
price fluctuation and foreign currency fluctuation risks. The
ratings are further constrained by company's modest profitability
as evidenced by the operating margins which have largely remained
between 7% and 8% in the past three years and the relatively high
gearing (1.72 x as on March 31, 2011) and modest coverage
indicators.
About Synthetic Packers
Synthetic Packers Private Limited was established in the year
1981 and is mainly into the manufacturing of poly film products
including packaging films, lamination films, shrink films, zip
lock bags and wide width films. SPPL has a current installed
capacity of 12000 MTPA which was enhanced from 9000 MTPA in
2009-10. The company has a reputed client base which includes
many reputed Indian and MNC companies with more than 50% of the
customers, the company has a long standing relationship of more
than 15 years.
Recent Results:
SPPL recorded an operating income of INR70.90 crore with a profit
after tax (PAT) of INR1.97 Cr in FY 11.
UMALAXMI ORGANICS: CARE Puts 'CARE BB-' Rating on INR7.95cr Loan
----------------------------------------------------------------
CARE assigns 'CARE BB-' and 'care a4' ratings to the bank
facilities of Umalaxmi Organics Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 7.95 CARE BB- Assigned
Short-term Bank Facilities 1.50 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Umalaxmi Organics
Pvt Ltd are constrained by its short track record and modest
scale of operations limiting its bargaining power and nascent
stage of the nutraceuticals industry in India. The ratings are
further constrained on account of volatility associated with raw
material prices and its availability impacting profitability
margin, highly leveraged capital structure due to large working-
capital requirements leading to stressed liquidity and foreign
currency fluctuation risk due to large export sales.
The ratings, however, draw strength from the various quality and
process related certifications received by UOPL from leading
agencies providing marketing support and its diversified
geographical base of the customers.
UOPL's ability to achieve scale of operations while managing raw
material sourcing and its pricing leading to better cash accruals
and rationalization of gearing levels through equity infusion
leading to improvement in liquidity position are the key rating
sensitivities.
About Umalaxmi Organics
Umalaxmi Organics Pvt Ltd was incorporated during 2005 by
Mr. Jeetesh Dave and Mr. Rakesh Dave at Jodhpur, Rajasthan. UOPL
is primarily into processing, trading and exporting of
nutraceutical products/herbal extracts. The trading segment has
accounted for 20-25% of the total turnover during the last three
years. UOPL has two plants in Rajasthan located at Jodhpur and
Sojat city.
UOPL has incurred a capex for a new capsulation plant with a
capacity of 90,000 capsules per hour. The commercial production
would commence in the second half of FY12.
=========
J A P A N
=========
CAFES 3'S: Fitch Junks Rating on Two Note Classes
-------------------------------------------------
Fitch Ratings has downgraded Cafes 3's class D and E trust
beneficiary interests (TBIs) due August 2014 and affirmed the
rest. The transaction is a Japanese multi-borrower type CMBS
securitisation. The rating actions are as follows:
-- JPY8.32 billion* Class A TBIs affirmed at 'Asf';
Outlook Stable
-- JPY2.79 billion* Class B TBIs affirmed at 'Asf';
Outlook Stable
-- JPY2.22 billion* Class C TBIs affirmed at 'BBBsf';
Outlook revised to Stable from Negative
-- JPY1.76 billion* Class D TBIs downgraded to 'CCCsf'
from 'Bsf'; assigned a Recovery Rating of 'RR2'
-- JPY0.52 billion* Class E TBIs downgraded to 'CCsf'
from 'CCCsf';
-- Recovery Rating revised to 'RR6' from 'RR4'
-- JPY0.15 billion
* Class F TBIs affirmed at 'CCsf'; Recovery Rating
of 'RR6'
*as of Nov. 7, 2011
The downgrade reflects Fitch's downward revision of the value of
six out of nine underlying properties. Of the nine, Fitch has
revised down its cash flow estimates for three properties, taking
into account their weak net cash flow performance so far in 2011.
The agency also adopted higher capitalization rates for all
properties, as two underlying loans are in default and the
remaining four loans are approaching their maturity, in turn
negatively affecting the property valuations. One property
backing an underlying loan which defaulted in October 2009 was
sold in August 2011. The servicer is conducting the sale of the
one remaining property backing this defaulted loan in accordance
with its workout plan, which allows for the property to be sold
at a price lower than the current loan balance.
The affirmation of the class A to C TBIs reflects repayment of
TBIs principal on a sequential basis, which has offset the
negative impact of the property revaluation by reducing the loan-
to-value ratios, especially on the class A and B TBIs, and
Fitch's view on the timing of full repayment of TBIs principal.
The rating on the class F TBIs reflects Fitch's view that
principal loss remains probable.
A deferral of dividend (interest) payment on all TBIs occurred in
November 2010. Fitch believes that securities that have deferred
interest payments or are expected to defer such payments are not
commensurate with ratings of above the 'Asf' category. The
dividend payment deferral on the class A TBIs constitutes a
'waterfall modification event'. Since the payment date in
February 2011, the payment waterfall structure has been modified
so that any cash collected from the underlying loans is applied
first to the dividend payment to the class A TBIs and then to the
repayment of class A TBI principal until payment in full.
This transaction was originally a securitisation of seven non-
recourse loans extended to six borrowers and four TMK (Tokutei
Mokuteki Kaisha) specified bonds (underlying loans), which were
originally ultimately backed by 20 properties. The transaction
is currently secured by six underlying loans backed by nine
properties.
L-JAC FIVE: S&P Lowers Ratings on Class J-1 Certificates to 'CC'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on classes
B to J-1 issued under the L-JAC Five Trust Beneficial Interest
transaction, and affirmed its ratings on classes A, D-2, and D-3.
"On Sept. 20, 2011, we lowered to 'D (sf)' from 'CC (sf)' our
ratings on classes E-2 to G-2. We withdrew our rating on the
interest-only (IO) class X trust certificates in August 2010, in
accordance with our criteria for rating IO securities," S&P said.
"The underlying loans of this transaction are grouped into three
loan pools, with each pool backing specific classes of trust
certificates. In addition, classes A to C are composed of
subclasses, each of which is backed by one of the three loan
pools. Interest and principal payments on the trust certificates
are made in accordance with the redemption method stipulated in
the transaction agreement," S&P related.
The downgrades of classes B to I-1 are based on these factors:
"We have lowered our assumption with regard to the likely
collection amount from the property backing one of the
transaction's underlying loans, which has defaulted (the
loan, which is backed by an office building in Chuo-ward,
Tokyo, originally represented about 5% of the initial
issuance amount of the trust certificates) after considering
a number of factors, including the progress of the collateral
liquidation that the servicer is undertaking, as well as the
performance of the property in question. We currently assume
the likely recovery amount of the property to be about 38% of
our initial underwriting value, whereas we estimated the
likely recovery amount of the property that we revised this
time to be about 62% of our initial underwriting value when
we last reviewed ur assessment of the property value in April
2011," S&P said.
"We have revised downward our assumption with regard to the
likely collection amount from the property backing one other
underlying loan, which has defaulted (the loan, which is
backed by a retail property in Nagasaki, originally
represented about 1% of the initial issuance amount of the
trust certificates) after considering a number of factors,
including the progress of the collateral sale that the
servicer is undertaking, as well as the performance of the
property in question. We currently assume the likely recovery
amount of the property to be about 24% of our initial
underwriting value, whereas we estimated the likely recovery
amount of the property that we revised this time to be about
30% of our initial underwriting value when we reviewed our
assessment of the likely recovery amount in May 2010," S&P
related.
"We have lowered our assumption with regard to the likely
collection amount from the property backing one other
underlying loan, which has defaulted (the loan, which is
backed by a hotel in Hokkaido, originally represented about
12% of the initial issuance amount of the trust certificates)
after considering the progress of the collateral sale that
the servicer is undertaking. We currently assume the likely
recovery amount of the property that we revised this time to
be about 30% of our initial underwriting value, whereas we
estimated the likely recovery amount of the property to be
about 39% of our initial underwriting value when we last
reviewed our assessment of the likely recovery amount in
April 2011," S&P said.
"The sale of property backing one other underlying loan (the
loan, which is backed by a retail property in Ehime
Prefecture, originally represented about 8% of the initial
issuance amount of the trust certificates) has been
completed. It is our view that a loss will be incurred,
although the actual loss amount has yet to be calculated
because final calculation at the borrower SPC level is still
underway. Indeed, we believe that the collection amount from
the property is now more likely to be lower than the loan
outstanding balance," S&P said.
"Meanwhile, we lowered our rating on class J-1 because: the sale
of the collateral property backing one of the transaction's
underlying loans (the loan originally represented about 1% of the
initial issuance amount of the trust certificates), which has
defaulted, has been completed. We have confirmed that a loss has
been incurred at the loan level because the amount collected
through the sale of the property was lower than the loan
outstanding balance," S&P related.
S&P affirmed its ratings on classes A, D-2, and D-3:
-- Class A: as payments to the class A trust certificates were
made using proceeds from the relevant underlying loans, the
credit enhancement levels for that class have improved;
-- Class D-2: S&P has already lowered its rating on class D-2 to
'CC (sf)' in July 2011.
-- Class D-3: S&P has maintained the assumption with respect to
the likely collection amount from the relevant underlying
loan that it made when it reviewed its assessment of the
related collateral properties in July 2011.
Of the effectively 13 loans that initially backed the trust
certificates, effectively six loans remain (the six loans, five
of which have defaulted, originally represented a combined 32% or
so of the initial issuance amount of the trust certificates). In
addition, apart from the transaction's six remaining loans, there
are two loans (the loans originally represented a combined 24% or
so of the initial issuance amount of the trust certificates)
for which the sales of the related collateral properties have
been completed but final calculations at the loan level have yet
to be completed.
L-JAC Five is a multiborrower commercial mortgage-backed
securities (CMBS) transaction. The trust certificates were
originally secured by 13 loans, and the loans were originally
backed by 81 real estate properties and real estate beneficial
interests. Premier Asset Management Co. acts as the servicer for
this transaction.
"The ratings reflect our opinion on the likelihood of the full
payment of interest and the ultimate payment of principal on the
class A to J-1 trust certificates by the transaction's legal
final maturity date in August 2015," S&P said.
Ratings Lowered
L-JAC Five Trust Beneficial Interest
JPY63.63 billion Floating-rate trust certificates due August 2015
Class To From Initial issue amount Coupon type
B CCC (sf) B- (sf) JPY7.2 bil. Floating rate
C CCC- (sf) CCC (sf) JPY6.1 bil. Floating rate
D-1 CCC- (sf) CCC (sf) JPY1.7 bil. Floating rate
E-1 CCC- (sf) CCC (sf) JPY0.5 bil. Floating rate
F-1 CCC- (sf) CCC (sf) JPY0.5 bil. Floating rate
G-1 CCC- (sf) CCC (sf) JPY0.5 bil. Floating rate
H-1 CCC- (sf) CCC (sf) JPY0.53 bil. Floating rate
I-1 CCC- (sf) CCC (sf) JPY0.56 bil. Floating rate
J-1 CC (sf) CCC (sf) JPY0.37 bil. Floating rate
Ratings Affirmed
L-JAC Five Trust Beneficial Interest
Class Rating Initial issue amount Coupon type
A BBB (sf) JPY41.5 bil. Floating rate
D-2 CC (sf) JPY1.75 bil. Floating rate
D-3 B- (sf) JPY0.64 bil. Floating rate
OLYMPUS CORP: Tokyo Police Starts Probe on Concealing Losses
------------------------------------------------------------
The Wall Street Journal reports that a person familiar with the
matter said Thursday that the Tokyo Metropolitan Police have
started an investigation into Olympus Corp.'s attempt, admitted
by the company Tuesday, to conceal investment losses that stem
back to the 1990s.
The company then tried to clean up its books with four
acquisitions made between 2006 and 2008, The Journal relates.
According to the news agency, spokespeople said neither the Tokyo
police nor Olympus could confirm if an investigation had started.
FSA Probe to Include Auditors
MarketWatch reports that a government official familiar with the
matter said Thursday that Japan's Financial Services Agency has
launched a probe of Olympus Corp. that includes a hearing with
the auditors who signed off on the company's books.
MarketWatch says the official did not specify which auditors will
face the hearing. KPMG AZSA LLC was Olympus's auditor until June
2009, during the time when many of the questionable transactions
took place and Ernst & Young ShinNihon LLC took over after, the
report notes.
According to MarketWatch, an Ernst & Young ShinNihon spokeswoman
said she can't comment on whether the firm is being questioned by
the FSA, but said it will respond to requests for cooperation
from authorities. KPMG AZSA wasn't immediately available for
comment, says MarketWatch.
Losses May Have Exceeded US$1 Billion
According to Reuters, the Nikkei Shimbun said losses on
securities investments at the core of a scandal rocking Olympus
may have once exceeded US$1 billion as the firm's share price
plunged again on doubts about its future.
"If other Japanese companies are also viewed with suspicion due
to the Olympus affair, they could have trouble raising funds,"
the Nikkei editorial, as cited by Reuters, said.
The paper said Japan's financial watchdogs and prosecutors should
stay on top of the case and cooperate with overseas authorities
who are also probing it, adds Reuters.
Securities Investment Scandal
The Troubled Company Reporter-Asia Pacific reported Wednesday
that Block & Leviton LLP, a Boston-based law firm representing
investors seeking to recover money lost due to investment fraud,
said it is investigating possible securities fraud claims
involving Olympus Corp.
On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008. At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition. The fees were approximately one-third of the $2.0
billion acquisition price, which is almost 30 times higher than
normal.
On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990. Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."
The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40). The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72. Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.
Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed. In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.
About Olympus Corp.
Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products. As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.
OLYMPUS CORP: Shareholder Calls for Ex-President's Return
---------------------------------------------------------
Tomoko Yamazaki at Bloomberg News reports that Baillie Gifford &
Co., a U.K. asset manager, called for Olympus Corp. to reinstate
former president Michael C. Woodford after the company admitted
to hiding losses by overpaying advisers.
Bloomberg relates that the Edinburgh-based investment management
group said in a statement on its website dated Nov. 9. that the
group invests in shares of Olympus, the world's biggest maker of
endoscopes, on behalf of some of its clients with more than 4% of
the company's outstanding shares as of Oct. 31.
According to the report, Baillie Gifford joins other shareholders
of Olympus, whose scandal surfaced as it ousted Mr. Woodford, who
went public with accusations of fraud in mid-October. Investors
including Southeastern Asset Management Inc. and Harris
Associates LP have also voiced concerns as Olympus lost more than
JPY500 billion (US$6.4 billion) of market value since
Mr. Woodford was ousted, says Bloomberg.
"What Olympus needs now is a thorough clean-up and we believe
Michael Woodford is the best man for the job," Bloomberg quotes
Elaine Morrison, partner and head of developed Asia equities, as
stated in a statement. "The current management of Olympus has
been discredited by its original response to Mr. Woodford's
allegations and its poor communications with shareholders; we
expect all directors or employees linked to this wrongdoing to be
dismissed and have their ties to the company severed."
Securities Investment Scandal
The Troubled Company Reporter-Asia Pacific reported Wednesday
that Block & Leviton LLP, a Boston-based law firm representing
investors seeking to recover money lost due to investment fraud,
said it is investigating possible securities fraud claims
involving Olympus Corp.
On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008. At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition. The fees were approximately one-third of the $2.0
billion acquisition price, which is almost 30 times higher than
normal.
On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990. Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."
The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40). The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72. Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.
Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed. In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.
About Olympus Corp.
Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products. As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.
===============
M O N G O L I A
===============
GOLOMT BANK: S&P Gives 'BB-/B' Counterparty Credit Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
and 'B' short-term counterparty credit ratings to Golomt Bank of
Mongolia. The outlook on the long-term rating is stable.
The ratings on Golomt Bank reflect the bank's marginal
capitalization due to its strong business growth rate, somewhat
narrow business scope, and moderate asset quality. These
strengths are partly offset by the bank's satisfactory business
position in its home market despite its small scale. The ratings
also reflect the implicit support of the Mongolian government
(Mongolia; BB-/Stable/B) due to the bank's importance to the
country's banking system.
"We view Golomt Bank's capitalization to be marginal due to the
bank's strong rate of growth," said Standard & Poor's credit
analyst Ryan Tsang. "Nonetheless, the bank has a very prudent
dividend policy to retain all earnings and proactive capital
management to secure new capital funding its business growth."
Golomt Bank's risk-adjusted capital ratio was 5.6% in the six
months ended June 30, 2011, based on Standard & Poor's Risk-
Adjusted Capital Framework. The ratio is marginal by global
standards, reflecting the likelihood that the bank's loan growth
will be strong over the next one to two years. Over the same
period, the bank's regulatory tier 1 ratio was 11.9% and total
regulatory capital adequacy ratio was 16.1%.
Golomt Bank's operations focus on various Mongolian business
sectors. The bank has a certain degree of concentration on some
riskier industries, such as mining and real estate. The bank has
a more diversified business mix than its local peers because of
its higher individual share of the credit card and foreign
exchange and trade business. However, Golomt Bank is more focused
on traditional banking business than its international peers.
"Golomt Bank's asset quality is moderate, in our view, but among
the best in Mongolia's banking industry. We believe the bank's
rapid loan growth since 2010 could weaken its asset quality, but
this risk is partly offset by Mongolia's strong economic
prospects and the bank's more prudent underwriting standard than
its local peers'. Golomt Bank's nonperforming loan (NPL) ratio
was 2% in 2010, but the bank's potential impaired assets would be
twice this level if its restructured loans were included. The
majority of these restructured loans are the extension of normal
working capital lines. However, the NPL ratio can be a poor
indicator of asset quality during periods of rapid growth, such
as the current period for Golomt Bank," S&P related.
"In our opinion, the greatest risk to Golomt Bank's profitability
is its provisioning costs, which will likely increase in 2011 as
the current credit cycle unfolds," said Mr. Tsang. "The bank's
net interest margin has narrowed over the past few years due to
fierce industry competition, particularly from foreign
competitors with larger business scale. This could slightly
improve following Golomt Bank's adjustments to its loan mix by
increasing more small and mid-size loans and mortgages, in our
view."
The bank's ratio of core earnings to adjusted assets was 1.27% in
2010, which is modest for a nascent banking system such as
Mongolia's, and could be further moderated by the potential
credit costs associated with strong loan growth.
"In our view, Golomt Bank has a good market position in
Mongolia's banking industry, where it commands about a quarter of
the sector's total assets. The bank also has good positions in
card services, international trade finance, and treasury
services. Golomt Bank's satisfactory franchise enables the bank
to secure stable funding sources and more diversified revenue mix
compared to local peers'. However, the bank's scale disadvantage
still constrains its overall market position compared to its
international peers'," S&P related.
"Golomt Bank's funding and liquidity profile is adequate, in our
opinion. The bank's loan-to-deposit ratio was about 60% at the
end of 2010, and we expect the bank to maintain the ratio below
75% over the next one to two years," S&P said.
"The stable outlook on Golomt Bank reflects our expectation that
the bank is likely to maintain its financial risk profile at a
similar level while pursuing its high-growth strategy. Golomt
Bank's capitalization may come under pressure if the bank cannot
secure new capital to fund its strong business growth on a timely
basis. We may raise the rating if Golomt Bank is able to
substantially improve its capitalization under the expectation of
strong asset growth. Conversely, we may lower the rating if the
bank adopts a more aggressive expansion that weakens its already
marginal capitalization or asset quality," S&P stated.
====================
N E W Z E A L A N D
====================
BRIDGECORP LTD: Ex-Director Pleads Guilty; Out on Bail
------------------------------------------------------
Edward Gay at nzherald.co.nz reports that a former director of
Bridgecorp Ltd and colleague of Rod Petricevic has pleaded guilty
to 10 charges of making untrue statements in documents and, in an
unusual move, has been bailed to a home in Australia.
According to the news agency, Gary Kenneth Urwin pleaded guilty
on Wednesday in the High Court at Auckland to the charges, which
related to offer documents of Bridgecorp and Bridgecorp
Investments.
nzherald.co.nz relates that Mr. Urwin has been remanded on bail
to his son's North Sydney property to await sentencing next
month, and could face a prison term.
The breaches of the Securities Act carry a maximum penalty of
five years' imprisonment or a fine of up to NZ$300,000, the
report notes.
Mr. Urwin's lawyer, David Reece, asked during Wednesday's brief
appearance for a home detention report to be prepared, but
prosecutor Brian Dickey said the Crown would oppose home
detention.
"We will be seeking a term of imprisonment," the report quotes
Mr. Dickey as saying.
nzherald.co.nz states that Mr. Urwin had been on trial with the
three other Bridgecorp directors, Petricevic, Rob Roest, and
Peter Steigrad. All four denied the charges, but Mr. Urwin on
Wednesday changed his plea to guilty.
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).
DATASOUTH GROUP: Former Director Charged with NZ$103MM Fraud
------------------------------------------------------------
The Serious Fraud Office on Thursday laid charges against former
Datasouth Group Director Gavin Clifford Bennett, alleging that he
orchestrated a NZ$103 million fraud involving a Ponzi-style
scheme and false accounting.
Mr. Bennett is facing six representative charges under the Crimes
Act relating to approximately 900 separate incidents of alleged
misuse of a document, and a further two charges of false
accounting.
The Datasouth Group offered IT services, including consultancy
and the lease of IT equipment, to business customers in
Christchurch. The group was made up of a number of companies,
including Datasouth Finance Limited, on which the SFO
investigation focused.
The SFO alleges that between April 2005 and March 2011,
Mr. Bennett created false documents relating to the lease of IT
equipment to fraudulently obtain funds from South Canterbury
Finance totalling approximately NZ$65 million.
He is also accused of falsifying entries in Datasouth Finance
financial statements by an estimated NZ$38 million in order to
retain the ongoing finance facility.
The SFO alleges that Mr. Bennett used the dishonestly obtained
funds to repay earlier false lease agreements in a manner similar
to a Ponzi scheme and to meet business expenses. He also
allegedly used a significant amount of money for his own personal
benefit. Ultimately, the resulting financial loss to South
Canterbury Finance was an estimated NZ$26 million.
As a direct result of the alleged offending, the Datasouth Group
went into liquidation in March 2011, leaving all 42 staff without
employment.
SFO Chief Executive Adam Feeley said, "The findings of our
investigation allege a very sustained and large-scale fraud that
not only had a very significant financial impact on South
Canterbury Finance, but also, ultimately, on the staff of
Datasouth."
The SFO opened its investigation into Datasouth Finance Limited
on March 21, 2011.
The SFO investigation into Datasouth is entirely independent from
its investigation into South Canterbury Finance, which is
ongoing.
PIKE RIVER: Labor Department Lays Charges Over Mine Disaster
------------------------------------------------------------
Colin Williscroft at the National Business Review reports that
the Department of Labour has laid 25 charges against three
parties involved in the Pike River disaster.
The charges related to alleged health and safety failures at the
Pike River Coal mine, following the tragic deaths of 29 miners
nearly a year ago, NBR says.
The charges, according to NBR, were laid on Wednesday at the
Greymouth District Court and each carried a maximum penalty of
NZ$250,000.
NBR relates that a statement on the department's website said it
was unable to name those charged at this point, as they either
had existing name suppression orders in their favor, or had the
right to apply for name suppression.
The department said that identifying the specific charges could
also lead to identification of the three parties charged, so the
department was unable to specify any detail of the charges, NBR
relays.
"The department recognizes there is high public interest in who
has been charged and is taking urgent steps to ensure that where
possible, names of the parties charged can be published."
Now that charges have been laid, a formal legal process is under
way, so the department was unable to provide further information,
the department, as cited by NBR, said.
About Pike River Coal
Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is
a New Zealand-based coal mining company. The Company, along with
its subsidiaries, is primarily engaged in the exploration,
evaluation, development and production of coal. It operates a
coal mine that lies under the Paparoa Ranges.
Pike River Coal Ltd, the company that operates the coal mine
where 29 miners died in a series of explosions in November 2010,
was placed into receivership in December 2010. New Zealand Oil &
Gas, the company's largest shareholder, appointed accountants
PricewaterhouseCoopers as receivers. The company owed NZ$80
million to secured creditors BNZ and NZ Oil & Gas. Pike River
Coal also owed another estimated NZ$10 million to NZ$15 million
to contractors, including some of the men who lost their lives in
the disaster.
===============
T H A I L A N D
===============
* THAILAND: Bangkok Floods Cause Liquidity Problems in SMEs
-----------------------------------------------------------
Bangkok Post reports that the flood crisis is causing liquidity
problems for small and medium-sized publishers, forcing them to
turn to direct sales to stay afloat until the situation settles
down.
According to Bangkok Post, Worapan Lokitsataporn, president of
the Publishers and Booksellers Association of Thailand (Pubat),
said the massive flooding will result in at least THB1.5 billion
worth of opportunity losses for publishers from October-November.
Up to 400 bookstores in Greater Bangkok, where more than 40% of
the country's bookstores are located, have been forced to close
due to the deluge that is now ravaging the capital, the report
says.
"Some 1,200 new books planned for the fourth quarter have been
postponed," Bangkok Post quotes Mr. Worapan as saying, adding
that the crisis has caused cash-flow problems for many smaller
publishers.
Mr. Worapan, as cited by Bangkok Post, said 80-90% of these
publishers depend on consignment sales through agents or in
bookstores, meaning they receive their money within a couple of
months after a book is sold.
To assist Pubat's 500 members, direct sales will be pushed by
searching for locations where publishers can sell directly to
customers, the report notes.
One suggestion is a travelling book fair in flood-free provinces
between next month February to cash in on the gift-giving season.
Bangkok Post adds that Pubat will also join hands with state
agencies and private companies to buy books for schools and
community libraries to replace inundated volumes.
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
ADAMUS RESOURCES ADU 200.07 -1.29
APN EUROPEAN PRO AEZ 563.10 -79.26
AUSTAR UNITED AUN 734.96 -173.09
AUSTRALIAN ZI-PP AZCCA 77.74 -2.57
AUSTRALIAN ZIRC AZC 77.74 -2.57
AUTRON CORP LTD AAT 32.50 -13.46
BIRON APPAREL LT BIC 19.71 -2.22
CENTRO PROPERTIE CNP 15,483.44 -349.73
MACQUARIE ATLAS MQA 1,894.75 -230.50
MISSION NEWENER MBT 20.38 -44.05
NATIONAL LEISURE NLG 154.59 -34.49
NATURAL FUEL LTD NFL 19.38 -121.51
ORION GOLD NL ORN 11.35 -4.05
POWERLAN LTD PWR 30.18 -12.07
REDBANK ENERGY L AEJ 377.31 -22.16
RENISON CONSOLID RSN 10.20 -22.16
RENISON CONSO-PP RSNCK 10.20 -22.16
RIVERCITY MOTORW RCY 386.88 -809.14
SCIGEN LTD-CUFS SIE 68.70 -42.35
STERLING BIOFUEL SBI 20.58 -1.88
SVC GROUP LTD SVC 13.47 -1.66
CHINA
BAOCHENG INVESTM 600892 43.73 -3.94
CHENGDE DALU -B 200160 33.15 -5.30
CHENGDU UNION-A 693 32.68 -15.13
CHINA FASHION CFH 10.11 -0.76
CHINA KEJIAN-A 35 103.72 -192.59
DONGXIN ELECTR-A 600691 14.82 -23.94
GUANGDONG ORIE-A 600988 15.24 -3.98
GUANGDONG SUNR-A 30 111.22 0.00
GUANGDONG SUNR-B 200030 111.22 0.00
GUANGXIA YINCH-A 557 19.49 -44.84
HEBEI BAOSHUO -A 600155 141.30 -414.58
HEBEI JINNIU C-A 600722 249.41 -53.61
HUASU HOLDINGS-A 509 87.92 -9.52
HUNAN ANPLAS CO 156 45.35 -32.70
JILIN PHARMACE-A 545 32.35 -8.44
JINCHENG PAPER-A 820 198.46 -130.71
MUDAN AUTOMOBI-H 8188 24.73 -3.40
NINGBO YIDONG-H 8249 18.29 -53.42
QINGDAO YELLOW 600579 218.06 -21.01
SHANGHAI WORLDBE 600757 14.33 -0.07
SHANXI LEAD IN-A 673 19.29 -1.82
SHENZ CHINA BI-A 17 20.97 -266.50
SHENZ CHINA BI-B 200017 20.97 -266.50
SHENZ INTL ENT-A 56 233.81 -22.28
SHENZ INTL ENT-B 200056 233.81 -22.28
SHENZHEN DAWNC-A 863 26.10 -161.49
SHENZHEN KONDA-A 48 122.96 -7.23
SHIJIAZHUANG D-A 958 217.74 -95.97
SICHUAN DIRECT-A 757 96.63 -170.70
SICHUAN GOLDEN 600678 207.17 -92.10
TAIYUAN TIANLO-A 600234 65.74 -21.06
TIANJIN MARINE 600751 114.38 -61.31
TIANJIN MARINE-B 900938 114.38 -61.31
TIBET SUMMIT I-A 600338 85.56 -3.87
TOPSUN SCIENCE-A 600771 137.37 -85.06
WINOWNER GROUP C 600681 21.76 -55.00
WUHAN BOILER-B 200770 304.50 -154.96
WUHAN GUOYAO-A 600421 11.22 -28.07
WUHAN LINUO SOLA 600885 106.01 -9.03
XIAMEN OVERSEA-A 600870 243.85 -138.59
XIAN HONGSHENG-A 600817 15.98 -296.67
YANBIAN SHIXIA-A 600462 204.56 -22.61
YANTAI YUANCHE-A 600766 63.90 -6.36
YUEYANG HENGLI-A 622 37.67 -21.61
HONG KONG
ASIA TELEMEDIA L 376 15.67 -14.24
ASIAN CAPITAL RE 8025 10.89 -11.02
BEP INTL HLDGS L 2326 10.32 -1.83
BUILDMORE INTL 108 16.57 -57.57
CHINA E-LEARNING 8055 19.66 -1.27
CHINA HEALTHCARE 673 37.18 -12.58
CHINA NEW ENERGY 1041 110.74 -80.18
CHINA OCEAN SHIP 651 485.84 -2.95
CHINA PACKAGING 572 19.73 -16.87
CMMB VISION HOLD 471 30.68 -17.93
CROSBY CAPITAL 8088 24.41 -15.53
EGANAGOLDPFEIL 48 557.89 -132.86
FIRST NTUL FOODS 1076 14.94 -56.59
FU JI FOOD & CAT 1175 73.43 -389.20
LUNG CHEONG INTL 348 62.04 -0.37
MELCOLOT LTD 8198 51.52 -55.33
MITSUMARU EAST K 2358 30.04 -15.37
PALADIN LTD 495 158.18 -11.60
PCCW LTD 8 6,248.35 -31.61
PROVIEW INTL HLD 334 314.87 -294.85
SINO RESOURCES G 223 15.55 -33.59
SMART UNION GP 2700 41.81 -38.85
SUNLINK INTL HLD 2336 17.79 -36.13
SURFACE MOUNT SMT 95.95 -2.48
TACK HSIN HLDG 611 53.95 -88.74
INDONESIA
ARPENI PRATAMA APOL 613.56 -124.15
ASIA PACIFIC POLY 471.38 -869.26
ERATEX DJAJA ERTX 13.48 -24.83
HANSON INTERNATI MYRX 35.46 -9.01
HANSON INT-PREF MYRXP 35.46 -9.01
JAKARTA KYOEI ST JKSW 33.33 -45.06
MITRA INTERNATIO MIRA 1,070.80 -443.66
MITRA RAJASA-RTS MIRA-R2 1,070.80 -443.66
MULIA INDUSTRIND MLIA 524.73 -39.06
PANASIA FILAMENT PAFI 34.26 -18.96
PANCA WIRATAMA PWSI 30.18 -37.45
PRIMARINDO ASIA BIMA 10.37 -21.92
SURABAYA AGUNG SAIP 248.21 -94.27
TOKO GUNUNG AGUN TKGA 13.76 -0.87
UNITEX TBK UNTX 19.45 -17.76
INDIA
ALPS INDUS LTD ALPI 288.11 -7.01
AMIT SPINNING AMSP 20.43 -1.96
ARTSON ENGR ART 23.87 -0.60
ASHAPURA MINECHE ASMN 191.87 -68.03
ASHIMA LTD ASHM 63.23 -48.94
ATV PROJECTS ATV 60.17 -54.25
BELLARY STEELS BSAL 451.68 -108.50
BHAGHEERATHA ENG BGEL 22.65 -28.20
BLUE BIRD INDIA BIRD 122.02 -59.13
CAMBRIDGE SOLUTI CAMB 149.58 -56.66
CELEBRITY FASHIO CFLI 36.61 -6.76
CFL CAPITAL FIN CEATF 12.36 -49.56
COMPUTERSKILL CPS 14.90 -7.56
CORE HEALTHCARE CPAR 185.36 -241.91
DCM FINANCIAL SE DCMFS 17.10 -9.46
DFL INFRASTRUCTU DLFI 42.74 -6.49
DIGJAM LTD DGJM 99.41 -22.59
DUNCANS INDUS DAI 133.65 -205.38
FIBERWEB INDIA FWB 12.23 -16.21
GANESH BENZOPLST GBP 48.95 -22.44
GEM SPINNERS LTD GEMS 14.58 -1.16
GSL INDIA LTD GSL 29.86 -42.42
HARYANA STEEL HYSA 10.83 -5.91
HENKEL INDIA LTD HNKL 88.83 -36.09
HIMACHAL FUTURIS HMFC 406.63 -210.98
HINDUSTAN PHOTO HPHT 74.44 -1,519.11
HINDUSTAN SYNTEX HSYN 15.20 -3.81
HMT LTD HMT 133.66 -500.46
ICDS ICDS 13.30 -6.17
INTEGRAT FINANCE IFC 49.83 -51.32
JAGSON AIRLINES JGA 12.31 -0.25
JCT ELECTRONICS JCTE 104.55 -68.49
JD ORGOCHEM LTD JDO 10.46 -1.60
JENSON & NIC LTD JN 18.05 -86.40
JIK INDUS LTD KFS 20.63 -5.62
JOG ENGINEERING VMJ 50.08 -10.08
KALYANPUR CEMENT KCEM 33.31 -30.53
KDL BIOTECH LTD KOPD 14.66 -9.41
KERALA AYURVEDA KRAP 13.97 -1.69
KIDUJA INDIA KDJ 17.15 -2.28
KINGFISHER AIR KAIR 1,935.94 -661.89
KINGFISHER A-SLB KAIR/S 1,935.94 -661.89
KITPLY INDS LTD KIT 37.68 -45.35
LLOYDS FINANCE LYDF 21.65 -11.39
LLOYDS STEEL IND LYDS 510.00 -48.98
LML LTD LML 65.26 -56.77
MADRAS FERTILIZE MDF 143.14 -99.28
MAHA RASHTRA APE MHAC 24.13 -14.27
MARKSANS PHARMA MRKS 110.32 -14.04
METROGLOBAL LTD MGLB 14.98 -7.51
MILLENNIUM BEER MLB 52.23 -5.22
MILTON PLASTICS MILT 18.65 -52.29
MODERN DAIRIES MRD 38.41 -0.45
MTZ POLYFILMS LT TBE 31.94 -2.57
MYSORE PAPER MSPM 97.02 -15.69
NATH PULP & PAP NPPM 14.50 -0.63
NICCO CORP LTD NICC 75.56 -6.49
NICCO UCO ALLIAN NICU 32.23 -71.91
NK INDUS LTD NKI 141.35 -7.71
NUCHEM LTD NUC 24.72 -1.60
PANCHMAHAL STEEL PMS 51.02 -0.33
PARASRAMPUR SYN PPS 99.06 -307.14
PAREKH PLATINUM PKPL 61.08 -88.85
PIRAMAL LIFE SC PLSL 51.20 -64.85
QUADRANT TELEVEN QDTV 188.57 -116.81
QUINTEGRA SOLUTI QSL 24.62 -11.51
RAJ AGRO MILLS RAM 10.21 -0.61
RATHI ISPAT LTD RTIS 44.56 -3.93
REMI METALS GUJA RMM 101.32 -17.12
RENOWNED AUTO PR RAP 14.12 -1.25
ROLLATAINERS LTD RLT 22.97 -22.24
ROYAL CUSHION RCVP 18.88 -81.42
SADHANA NITRO SNC 18.21 -0.73
SAURASHTRA CEMEN SRC 106.01 -2.81
SCOOTERS INDIA SCTR 19.43 -10.78
SEN PET INDIA LT SPEN 11.58 -26.67
SHAH ALLOYS LTD SA 213.69 -39.95
SHALIMAR WIRES SWRI 25.78 -38.78
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE GANESH FOR SGFO 44.50 -2.89
SHREE RAMA MULTI SRMT 62.15 -42.08
SIDDHARTHA TUBES SDT 76.98 -12.45
SOUTHERN PETROCH SPET 1,584.27 -4.80
SQL STAR INTL SQL 11.69 -1.14
STERLING HOL RES SLHR 66.77 -2.85
STI INDIA LTD STIB 35.39 -0.54
SUPER FORGINGS SFS 17.83 -6.37
TATA TELESERVICE TTLS 1,311.30 -138.25
TATA TELE-SLB TTLS/S 1,311.30 -138.25
TODAYS WRITING TWPL 44.08 -5.32
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 24.55 -8.57
TUTICORIN ALKALI TACF 19.13 -16.31
UNIFLEX CABLES UFC 47.46 -7.49
UNIFLEX CABLES UFCZ 47.46 -7.49
UNIMERS INDIA LT HDU 18.08 -5.86
UNITED BREWERIES UB 3,067.32 -137.09
UNIWORTH LTD WW 168.36 -155.74
UNIWORTH TEXTILE FBW 20.57 -37.60
USHA INDIA LTD USHA 12.06 -54.51
VANASTHALI TEXT VTI 25.92 -0.15
VENTURA TEXTILES VRTL 14.33 -1.91
VENUS SUGAR LTD VS 11.06 -1.08
JAPAN
ARRK CORP 7873 1,221.45 -37.80
CROWD GATE CO 2140 11.63 -4.29
DDS INC 3782 18.69 -0.08
ISHII HYOKI CO 6336 201.38 -12.95
KANMONKAI CO LTD 3372 68.26 -2.44
KFE JAPAN CO LTD 3061 17.86 -2.27
L CREATE CO LTD 3247 42.34 -9.15
MEIHO ENTERPRISE 8927 76.16 -18.35
NEXT JAPAN HOLDI 2409 177.68 -5.08
NIS GROUP CO LTD 8571 477.70 -75.44
PROPERST CO LTD 3236 305.90 -330.20
TOYO KNIFE CO 5964 74.73 -5.55
KOREA
DAISHIN INFO 20180 740.50 -158.45
HANIL CONSTRUCT 6440 880.70 -22.42
HYUNDAI BNG STEE 4565 476.66 -70.65
HYUNDAI BNG STEE 4560 476.66 -70.65
KUKDONG CORP 5320 53.07 -1.85
ORICOM INC 10470 82.65 -40.04
PLA CO LTD 82390 14.95 -21.43
SUNGJEE CONSTRUC 5980 114.91 -83.19
YOUILENSYS CORP 38720 166.70 -12.34
MALAYSIA
BANENG HOLDINGS BANE 38.70 -17.29
HAISAN RESOURCES HRB 69.11 -4.68
HO HUP CONSTR CO HO 65.87 -11.56
LUSTER INDUSTRIE LSTI 19.28 -7.15
MITHRIL BHD MITH 23.78 -5.70
NGIU KEE CO-BHD NKC 14.19 -12.76
TRACOMA HOLDINGS TRAH 60.31 -26.28
VTI VINTAGE BHD VTI 20.92 -3.48
PHILIPPINES
CYBER BAY CORP CYBR 14.14 -94.36
FIL ESTATE CORP FC 40.90 -15.77
FILSYN CORP A FYN 23.81 -11.69
FILSYN CORP. B FYNB 23.81 -11.69
GOTESCO LAND-A GO 21.76 -19.21
GOTESCO LAND-B GOB 21.76 -19.21
PICOP RESOURCES PCP 105.66 -23.33
STENIEL MFG STN 17.61 -11.14
UNIWIDE HOLDINGS UW 50.36 -57.19
VICTORIAS MILL VMC 164.26 -18.20
SINGAPORE
ADV SYSTEMS AUTO ASA 20.62 -11.82
ADVANCE SCT LTD ASCT 25.29 -10.05
HL GLOBAL ENTERP HLGE 93.40 -15.38
LINDETEVES-JACOB LJ 22.43 -6.01
NEW LAKESIDE NLH 19.34 -5.25
SUNMOON FOOD COM SMOON 17.93 -15.74
TT INTERNATIONAL TTI 246.68 -79.69
THAILAND
ABICO HLDGS-F ABICO/F 15.28 -4.40
ABICO HOLDINGS ABICO 15.28 -4.40
ABICO HOLD-NVDR ABICO-R 15.28 -4.40
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
BANGKOK RUBBER BRC 91.32 -113.78
BANGKOK RUBBER-F BRC/F 91.32 -113.78
BANGKOK RUB-NVDR BRC-R 91.32 -113.78
CALIFORNIA W-NVD CAWOW-R 33.30 -10.09
CALIFORNIA WO-FO CAWOW/F 33.30 -10.09
CALIFORNIA WOW X CAWOW 33.30 -10.09
CIRCUIT ELEC PCL CIRKIT 16.79 -96.30
CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30
CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30
DATAMAT PCL DTM 12.69 -6.13
DATAMAT PCL-NVDR DTM-R 12.69 -6.13
DATAMAT PLC-F DTM/F 12.69 -6.13
ITV PCL ITV 37.10 -118.46
ITV PCL-FOREIGN ITV/F 37.10 -118.46
ITV PCL-NVDR ITV-R 37.10 -118.46
K-TECH CONSTRUCT KTECH 38.87 -46.47
K-TECH CONSTRUCT KTECH/F 38.87 -46.47
K-TECH CONTRU-R KTECH-R 38.87 -46.47
KUANG PEI SAN POMPUI 17.70 -12.74
KUANG PEI SAN-F POMPUI/F 17.70 -12.74
KUANG PEI-NVDR POMPUI-R 17.70 -12.74
PATKOL PCL PATKL 52.89 -30.64
PATKOL PCL-FORGN PATKL/F 52.89 -30.64
PATKOL PCL-NVDR PATKL-R 52.89 -30.64
PICNIC CORP-NVDR PICNI-R 101.18 -175.61
PICNIC CORPORATI PICNI/F 101.18 -175.61
PICNIC CORPORATI PICNI 101.18 -175.61
PONGSAAP PCL PSAAP/F 13.02 -1.77
PONGSAAP PCL PSAAP 13.02 -1.77
PONGSAAP PCL-NVD PSAAP-R 13.02 -1.77
SAHAMITR PRESS-F SMPC/F 27.92 -1.48
SAHAMITR PRESSUR SMPC 27.92 -1.48
SAHAMITR PR-NVDR SMPC-R 27.92 -1.48
SUNWOOD INDS PCL SUN 19.86 -13.03
SUNWOOD INDS-F SUN/F 19.86 -13.03
SUNWOOD INDS-NVD SUN-R 19.86 -13.03
THAI-DENMARK PCL DMARK 15.72 -10.10
THAI-DENMARK-F DMARK/F 15.72 -10.10
THAI-DENMARK-NVD DMARK-R 15.72 -10.10
TRANG SEAFOOD TRS 13.90 -3.59
TRANG SEAFOOD-F TRS/F 13.90 -3.59
TRANG SFD-NVDR TRS-R 13.90 -3.59
TT&T PCL TTNT 615.73 -210.36
TT&T PCL-NVDR TTNT-R 615.73 -210.36
TT&T PUBLIC CO-F TTNT/F 615.73 -210.36
TAIWAN
BEHAVIOR TECH CO 2341S 41.94 -1.02
BEHAVIOR TECH-EC 2341O 41.94 -1.02
CHIEN TAI CEMENT 1107 214.12 -49.02
HELIX TECH-EC 2479T 23.39 -24.12
HELIX TECH-EC IS 2479U 23.39 -24.12
HELIX TECHNOL-EC 2479S 23.39 -24.12
TAIWAN KOL-E CRT 1606U 507.21 -147.14
TAIWAN KOLIN-EN 1606V 507.21 -147.14
TAIWAN KOLIN-ENT 1606W 507.21 -147.14
VERTEX PREC-ENTL 5318T 42.24 -5.08
*********
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 ***