/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120113.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, January 13, 2012, Vol. 15, No. 10 Headlines C H I N A SINO-FOREST: In Talks With Note Holders on Waiver from Defaults H O N G K O N G SMASHBOX HK: Creditors' Proofs of Debt Due Feb. 6 TOTAL ENERGY: Creditors' Proofs of Debt Due Feb. 6 VINS DE FRANCE: Court to Hear Wind-Up Petition on Feb. 1 VISUAL DHARMA: Placed Under Voluntary Wind-Up Proceedings WINOX MANUFACTURING: Placed Under Voluntary Wind-Up Proceedings I N D I A CHRISTY FRIEDGRAM: ICRA Reaffirms '[ICRA]BB' Long Term Rating CS COMPONENTS: ICRA Assigns '[ICRA]B' Rating to INR11cr Loan DEE-TECH PROJECTS: ICRA Puts '[ICRA]BB' Rating on INR12cr Loan JAYADEVI MILLS: ICRA Assigns '[ICRA]B+' Rating to INR15cr Loan MAHINDRA SATYAM: Sues Former Execs, PriceWaterhouseCoopers MALHAR FASHIONS: ICRA Assigns '[ICRA]B' Rating to INR7.55cr Loan OMAXE LIMITED: Inadequate Info Cues Fitch to Withdraw 'B-' Rating POWER SPINNING: Fitch Migrates Rating on 3 Loan Classes to Low-B RAKHECHA SECURITIES: ICRA Reaffirms '[ICRA]BB' Loan Rating RADHESHYAM FIBERS: ICRA Reaffirms '[ICRA]BB-' Long-Term Rating RAIGARH IRON: ICRA Suspends '[ICRA]BB' INR8.4cr Bank Lines Rating REMI EDELSTAHL: ICRA Reaffirms '[ICRA]BB+' Long-Term Rating SHYAM INDUSTRIES: ICRA Reaffirms '[ICRA]BB+' Long Term Rating TURBO TECH: ICRA Assigns '[ICRA]B-' Rating to INR4cr Based Limits K O R E A * SOUTH KOREA: Businesses Face Dire Financial Situation in Q1 N E W Z E A L A N D CRAFAR FARMS: Landcorp in Talks to Run Farms for Chinese Buyer VIRGIN AUSTRALIA: Pacific Blue Incurs NZ$7.35-Mil. Annual Loss N E P A L UNITED DEVELOPMENT: Central Bank to Start Liquidation Process P H I L I P P I N E S DEVELOPMENT BANK: Moody's Revises BFSR to 'D-' From 'D' T A I W A N JIH SUN: Fitch Affirms Shortterm Foreign Currency IDR at 'B' WAN HAI: Moody's Changes 'Ba3' CFR Outlook to Negative X X X X X X X X * Large Companies with Insolvent Balance Sheets - - - - - ========= C H I N A ========= SINO-FOREST: In Talks With Note Holders on Waiver from Defaults --------------------------------------------------------------- Sino-Forest Corporation provided an update concerning the status of its efforts to obtain waivers of its default from its note holders in respect of its Senior Notes due 2014 and its Senior Notes due 2017, and commented on the status of its historic financial statements. As disclosed in the Company's December 18, 2011 press release, Sino-Forest received written notices of default dated Dec. 16, 2011 in respect of its Senior Notes due 2014 and its Senior Notes due 2017. An "Event of Default" under the Senior Note Indentures will have occurred if Sino-Forest fails to cure or otherwise fails to address the breach of indenture giving rise to the notices of default within 30 days following receipt of the notices. The Company will not be able to file the 2011 third quarter financial results and cure the default within the 30-day cure period. The Company's breach of the Senior Note Indentures relating to the Q3 Results can be waived for a series of Senior Notes by the holders of at least a majority in principal amount of that series. The Company has been in discussions with an ad hoc committee of note holders that hold a substantial portion of the Company's four series of senior and convertible notes. The Company and the ad hoc committee have negotiated the terms under which the defaults under the Senior Notes will be waived. While there is no assurance that waivers will be obtained, the Company is optimistic that holders of a majority in principal amount of its Senior Notes due 2014 and its Senior Notes due 2017 will agree to waive the breach within the 30-day cure period. On Nov. 15, 2011, Sino-Forest announced, among other things, that it was deferring the release of the Q3 Results until certain issues could be resolved to the satisfaction of the Board of Directors. The issues included (a) determining the nature and scope of the relationships between Sino-Forest and certain of its authorized intermediaries and suppliers and among certain authorized intermediaries and suppliers, as discussed in the Second Interim Report of the Independent Committee of the Board of Directors publicly released on November 15, 2011, and (b) the satisfactory explanation and resolution of issues raised by certain documents identified by the advisors to the Independent Committee, by counsel to the Company, by the Company's auditor Ernst & Young and by staff of the Ontario Securities Commission. The Company has worked diligently since November 15, 2011 and believes it has made progress in resolving outstanding issues. As disclosed in the Company's December 12, 2011 press release, there is no assurance that the Company will be able to release the Q3 Results or, if able, as to when such release will occur. For the same reasons, there is also no assurance that the Company will be able to release audited financial statements for its 2011 fiscal year. As was indicated in the Company's December 12, 2011 press release, the circumstances that could cause the Company to be unable to release the Q3 Results could impact the Company's historic financial statements. For this reason, the Company cautions that the Company's historic financial statements and related audit reports should not be relied upon. The Company continues its efforts to resolve the outstanding issues described above. The Company believes that if it is successful in releasing its Q3 Results and in obtaining an audit opinion for its 2011 fiscal year, those efforts will resolve any issues associated with the reliability of the Company's historic financial statements. About Sino-Forest Sino-Forest Corporation is a commercial forest plantation operator in China. Its principal businesses include the ownership and management of tree plantations, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products. Sino- Forest also holds a majority interest in Greenheart Group Limited, a Hong-Kong listed investment holding company with assets in Suriname (South America) and New Zealand and involved in sustainable harvesting, processing and sales of its logs and lumber to China and other markets around the world. Sino-Forest's common shares have been listed on the Toronto Stock Exchange under the symbol TRE since 1995. Learn more at http://www.sinoforest.com/ ================ H O N G K O N G ================ SMASHBOX HK: Creditors' Proofs of Debt Due Feb. 6 ------------------------------------------------- Creditors of Smashbox Hong Kong Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Feb. 6, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 28, 2011. The company's liquidators are: Wong Poh Weng Wong Tak Man Stephen 29/F, Caroline Centre Lee Gardens Two 28 Yun Ping Road Hong Kong TOTAL ENERGY: Creditors' Proofs of Debt Due Feb. 6 -------------------------------------------------- Creditors of Total Energy Resources (Hong Kong) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Feb. 6, 2012, to be included in the company's dividend distribution. The company's liquidators are: Thomas Andrew Corkhill Iain Ferguson Bruce 8th Floor, Gloucester Tower The Landmark 15 Queen's Road Central, Hong Kong VINS DE FRANCE: Court to Hear Wind-Up Petition on Feb. 1 -------------------------------------------------------- A petition to wind up the operations of Vins De France Corporation Limited will be heard before the High Court of Hong Kong on Feb. 1, 2012, at 9:30 a.m. Vina Ventisquero Limitada filed the petition against the company on Nov. 30, 2011. The Petitioner's solicitors are: T.K. Tsui & Co Unit A, 12th Floor Neich Tower 128 Gloucester Road Hong Kong VISUAL DHARMA: Placed Under Voluntary Wind-Up Proceedings --------------------------------------------------------- At an extraordinary general meeting held on Dec. 30, 2011, creditors of Visual Dharma Publications Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Chan Chung Wah Clement 5/F, Heng Shan Centre 145 Queen's Road East Wanchai, Hong Kong WINOX MANUFACTURING: Placed Under Voluntary Wind-Up Proceedings --------------------------------------------------------------- At an extraordinary general meeting held on Jan. 6, 2012, creditors of Winox Manufacturing Company Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Yiu Hon Ming Room 1205, 12/F Manulife Provident Funds Place No. 345 Nathan Road Kowloon ========= I N D I A ========= CHRISTY FRIEDGRAM: ICRA Reaffirms '[ICRA]BB' Long Term Rating ------------------------------------------------------------- ICRA has reaffirmed '[ICRA]BB' rating to the INR18 crores fund based limits of Christy Friedgram Industry. The outlook on the long term rating is stable. ICRA has also reaffirmed an '[ICRA]A4' rating to the INR2 crores non-fund based limits of CFI. The inadequate credit quality ratings continues to take into account the vulnerability of the profitability of CFI's core business of manufacturing of health food to variations in the prices of its key raw materials (mainly grains) given the fixed price nature of the selling price of its final product. The rating also continues to factor in the risks inherent in partnership firms like limited ability to raise capital and the risk of dissolution and client concentration risks and credit risks arising out of its exposure to a single client, namely the GoUP. However ICRA continues to derive comfort from the support of the Chadha group (to which the firm belongs) and its long track record of supplying food products to UP govt. ICRA also draws comfort from the professional management which is experienced in similar fields and directly involved in operations of the company. Going forward the key success factor for the firm would be to supply the orders at the requisite quality, getting qualified for orders in future and maintain the adequate margins given the fact that commodity prices are volatile and contracts are of fixed price nature. About Christy Friedgram Christy Friedgram Industry is a partnership firm started in December 2003 to supply the health nutrition foods to the GoUP. It is engaged in the manufacturing of Amylase Rich Energy Food, a health food which is largely supplied only to government for their nutrition programmes. The finished product of the firm is a multivitamin health food comprising of wheat, soyabean, sugar, ragi malted flour, vitamins and minerals premix. The production capacity of the unit is 1.24 lakh MT per annum. Recent Results: For FY 2011, the CFI has achieved an operating income of INR148.89 crore and a net profit of INR11.21 crore as against an operating income of INR111.92 crore and a net profit of INR8.01 crore in FY10. CS COMPONENTS: ICRA Assigns '[ICRA]B' Rating to INR11cr Loan ------------------------------------------------------------ ICRA has assigned '[ICRA]B' rating to the INR11 crore term debt programme and INR5 crore cash credit facilities of CS Components Private Limited. ICRA has also assigned an 'A4' rating to the INR2.5 crore non-fund-based bank facilities of CSCPL. For the purpose of arriving at the rating, ICRA has taken a consolidated view of CSCPL and its group company Santo Engineering Company Private Limited because of operational, financial and managerial synergies between them. The ratings are constrained by the relatively small size of operations, stretched liquidity position and limited financial flexibility on consolidated basis. The ratings are also constrained by the vulnerability of the company's operations to increasing competitive pressures in the business environment with limited entry barriers in which CSCPL's operates and as well as significantly high customer concentration risks. ICRA also notes that CSCPL has limited bargaining power with its customers, given the large scale of their operations and ease of shifting business to other vendors because of low complexity in manufacturing operations. The ratings, nevertheless, favorably factor in CSCPL's long track record of the promoters in the fabrication industry and reputed customer profile While the promoter group is currently implementing largely debt-funded capital expenditure both in the company and its group concern namely SECPL, the company's ability to execute the same without any time & cost overrun as well as diversify customer profile so as to ensure optimum capacity utilisation level remain crucial from credit perspective. About CS Components Founded in June 2001, CS Components Private Limited was promoted by Mr Sridhar Gupta and family in association with the promoters of Central Machinery and Plastic Product Limited. The company's plant is located at Umbergaon district, Valsad (Gujarat) and wherein it produces wide range of fabricated components such as tube sheets, fabricated panels for various air-conditioning models, stainless steel boxes used in WT's, stator ring & rotor cattier for 850 KW WT etc. Recent Results: During the six month period ended September 2011, the company has reported a net profit of INR1.6 crore on a turnover of INR22.5 crore. DEE-TECH PROJECTS: ICRA Puts '[ICRA]BB' Rating on INR12cr Loan -------------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]BB' to the INR12.0 crore cash credit limits and INR17.0 crore proposed long term facilities of Dee-Tech Projects Private Limited; the outlook on the rating is stable. ICRA has also assigned '[ICRA]A4' rating to the INR28.0 crore non fund based facilities of DPPL. The ratings are constrained by the highly competitive nature of the EPC contracting business; high working capital intensity of DPPL resulting from high debtor days and stretched cash conversion cycle; the vulnerability of DPPL's profit margins to volatility in raw material and labour costs; and the weak financial risk profile marked by moderate profitability, high gearing levels, stretched liquidity and significant off-balance sheet exposure in the form of performance bank guarantees. The ratings, however, favorably factor the growth opportunities for EPC contractors provided by the government's increased thrust on urban development as well as private sector investments in various industries such as power, mining, steel, etc; the demonstrated growth in revenues over the years; and the comfortable order book position of INR124 crore as on September 2011, with diversified presence across industries and customer profile. About Dee-Tech Projects Dee-Tech Projects Private Limited was started in 1995 as a proprietorship concern by Mr. S Sivaraman. Subsequently, in 2004, DPPL was established to take over the business of the proprietorship concern. The company is an engineering, procurement and construction (EPC) contractor for water engineering projects undertaken by various government and private sector agencies. Previously, the majority of its revenues were derived from water supply and sanitation (WSS), underground sewerage system (UGSS) and sewerage treatment plant (STP) projects of municipal bodies. Subsequently, the company has been able to diversify to a significant extent into hydraulic engineering contracts for various industries such as power, mining, steel, etc. JAYADEVI MILLS: ICRA Assigns '[ICRA]B+' Rating to INR15cr Loan -------------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]B+' to the INR15.0 crore term loans and INR9.0 crore fund based facilities of Jayadevi Mills Private Limited. ICRA has also assigned short term rating of '[ICRA]A4' to the INR4.0 crore fund based facilities (sub limits) and INR1.0 crore non fund based facilities (sub limits) of JMPL. The ratings consider the long term experience of the promoters in the spinning industry and benefits of being part of the larger "Sri Jayavilas Group" in terms of regular access to raw materials. The ratings also take note of Company's production of coarse count yarn through power efficient open end process and presence in only domestic market where demand is relatively robust. The ratings are however constrained by Company's weak financial profile with low profit margin, high gearing and stretched coverage indicators. Due to Company's debt funded capital expenditure in near to medium term the capital structure may deteriorate further. ICRA also takes note of moderate customer concentration risk with the top ten customers accounting for ~60% of sales, limited pricing flexibility due to competition from highly fragmented industry and susceptibility of margins to volatility in raw material prices and Gov't policy changes. About Jayadevi Mills Jayadevi Mills Private Limited was established in 1997 and is part of Shri Govindaraja Group of Companies. The Company is engaged in manufacturing of cotton yarn in the count range of 10- 40 through open end spinning process (OE process) and has an installed capacity of 3,690 rotors. The Company has manufacturing facilities in Aruppukottai (near Madurai in Tamil Nadu) along with that of other group companies. The Company mainly uses waste cotton from other spinning mills (both group companies and others) as raw materials and is catering to clients in the domestic market. Shri Govindaraja Group of companies is part of the larger Sri Jayavilas Group (founded by Late Mr. Sathu T. Ramasamy Naicker), based in Aruppukottai, which has a presence across spinning sector in addition to other industries like passenger and commercial transport, food processing, blue metal mining and cement industry etc. Sri Jayavilas group has a turnover of ~Rs. 2000 crore and employs around 30,000 workers. Recent Results: As per provisional financials for H1 2011-12, JMPL earned profit before tax INR1.7 crore on an operating income of INR23.4 crore as against net profit of INR2.5 crore on an operating income of INR44.2 crore in fiscal 2010-11 MAHINDRA SATYAM: Sues Former Execs, PriceWaterhouseCoopers ---------------------------------------------------------- The Times of India reports that three years after the multi-crore Satyam scam first came to light, Mahindra Satyam has dragged Satyam's disgraced founder B Ramalinga Raju, along with the company's erstwhile board of directors, some former Satyam employees as well as auditing firm Price Waterhouse (PW), an arm of audit and consulting firm PriceWaterhouseCoopers (PwC), and its affiliates and partners to court. According to the report, Mahindra Satyam, as Satyam is known after being taken over by the Mahindras in April 2009, informed the bourses on Monday that it had filed a suit in the city civil court of Hyderabad against the former Satyam board, some employees and PW and affiliates for perpetrating fraud, breach of fiduciary responsibility, obligations and negligence in performance of duties. The company also said that it was seeking undisclosed damages from them, The Times of India says. Sources told TOI that the company has sued nearly 123 PW and PwC partners across US and India offices in Bangalore, Hyderabad, Kolkata and Mumbai along with its various affiliates including Lovelock & Lewes. The former Satyam employees to be sued include its then chief financial officer Vadlamani Srinivas, and former internal auditor Prabhakar Gupta, who were also jailed, as well as former Satyam finance vice-president G Ramakrishna and other finance department employees like D Venkatapati Raju and Ch Srisailam, according to the report. While the company did not peg any specific number to the damages it was seeking, Mahindra Satyam chairman Vineet Nayyar told TOI that the figure would definitely be in excess of the $210 million that the company had to cough up to settle its legal liabilities. These include the $125 million US class action suit settlement, $70 million Upaid lawsuit settlement and the $10 million settlement with the US markets watchdog SEC, the report notes. Satyam reported a INR1.25 billion loss for the 12 months ended March 31, 2010, and an INR81.8 billion loss for 2009. The company reported INR1.47 billion net loss in 2011, its third annual loss. About Mahindra Satyam Headquartered in Secunderabad, India, Mahindra Satyam (PINK:SAYCY) -- http://www.mahindrasatyam.net/-- formerly known as Satyam Computer Services Limited, is information, communications and technology (ICT) Company providing business consulting, information technology and communication services. The Company is powered by a pool of information technology (IT) and consulting professionals across enterprise solutions, client relationship management, business intelligence, business process quality, operations management, engineering solutions, digital convergence, product lifecycle management, and infrastructure management services. The Company is a part of the Mahindra Group, a global industrial conglomerate in India. The Mahindra Group's interests span financial services, automotive products, trade, retail and logistics, information technology and infrastructure development. Subsequent to July 10, 2009, Venturbay Consultants Private Limited (Venturbay) held 42.67% of the Company. MALHAR FASHIONS: ICRA Assigns '[ICRA]B' Rating to INR7.55cr Loan ---------------------------------------------------------------- A rating of '[ICRA]B' has been assigned to the INR7.55 crore long-term fund-based facilities and the INR1.95 crore term loans of Malhar Fashions (India) Private Limited. A rating of '[ICRA]A4' has also been assigned to the INR0.50 crore short-term non-fund based facilities of Malhar. The ratings factor in the experience of the promoters in readymade garments exports business, experience of supplying to niche brands in Europe with fairly long business relations and support from the Government in the form of incentives through focus market and duty drawback schemes. The ratings, are, however, constrained by weak financial profile characterized by weak capital structure, profitability and debt metrics and small scale of operations restricting bargaining power and benefits from scale economies. ICRA also notes the long manufacturing cycle along with lengthening receivables period leading to tight working capital position. The weak global economic scenario is expected to maintain pressure on profitability, receivables position and hence the debt metrics. About Malhar Fashions Malhar Fashions (India) Private Limited was initially floated as a proprietorship firm by Mr. Nirad Jhaveri in 1990. The firm was later converted into a private limited company and renamed Malhar Fashions (India) Private Limited. The company is into export of readymade garments mainly ladies wear with focus on production of tops. The company does not have its own production facility and production is outsourced to a dedicated job worker which has annual production capacity of 480,000 pieces per annum. Around 70% of the garments are woven with balance being knitted however the proportion varies from season to season. The company's exports are primarily to Europe to niche clientele with Simint Spa (which licenses Armani products) and Sixty Spa (an international fashion company which owns denim brand such as Energie, Miss Sixty) being the prominent ones. Recent results: FY 2011, as per audited results, the company reported an operating income of INR17.7 crore and profit after tax of INR0.4 crore. For H1, FY 2012 as per unaudited results, the company reported net sales of INR8.5 crore and an OPBIDTA of INR1.1 crore. OMAXE LIMITED: Inadequate Info Cues Fitch to Withdraw 'B-' Rating ----------------------------------------------------------------- Fitch Ratings has withdrawn the 'Fitch B-(ind)nm' National Long- Term rating on India's Omaxe Limited and its INR2,300 million long-term bank loans. The ratings have been withdrawn due to lack of adequate information. Fitch will no longer provide ratings or analytical coverage of Omaxe. POWER SPINNING: Fitch Migrates Rating on 3 Loan Classes to Low-B ---------------------------------------------------------------- Fitch Ratings has migrated India-based Power Spinning Mills' 'Fitch B+(ind)' National Long-Term rating with a Stable Outlook 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 PSM. 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 PSM's bank loans to the non-monitored category as follows: -- INR49.16m long-term loans: migrated to 'Fitch B+(ind)nm' from 'Fitch B+(ind)' -- INR30m fund-based working capital limits: migrated to 'Fitch B+(ind)nm'/'Fitch A4(ind)nm' from 'Fitch B+(ind)'/'Fitch A4(ind)' -- INR20m non-fund based working capital limits: migrated to 'Fitch B+(ind)nm'/'Fitch A4(ind)nm' from 'Fitch B+ (ind)'/'Fitch A4(ind)' RAKHECHA SECURITIES: ICRA Reaffirms '[ICRA]BB' Loan Rating ---------------------------------------------------------- ICRA has reaffirmed the '[ICRA]BB' rating with stable outlook to INR1 crore of Overdraft facility of Rakhecha Securities Limited. ICRA has also reaffirmed the '[ICRA]A4' rating to INR15 crore Short term Non-Fund based bank lines of RSL. The ratings are constrained by the inherent volatility in the equity broking business with limited presence & declining market share, low diversification of revenues and inability to maintain profitable operations in light of volatility in the capital markets. However, the ratings also takes into account the company's long presence in the equity broking and arbitrage trading business, and adequate risk management systems deployed by the company for the current scale of operations. The ratings also factors in the weak to moderate outlook for the Indian broking industry over the short term given pressures on profitability driven by increasing competition and decreasing brokerage yields without commensurate decline in operating costs. The ratings at the current level also reflect RSL's relative positioning with other ICRA rated brokerage houses. RSL, incorporated in 1994, is primarily engaged in proprietary broking activities with a small presence in the retail broking segment. In terms of proprietary trading activities, RSL carries out arbitrage trading and jobbing activities. The company has deployed close to INR12.00 crore of funds for such trading activities and earns a net return of 10-12% on the same. Over the past two financial years, RSL has considerably reduced its proprietary investment book to ~Rs.0.03 crore during FY11 from ~Rs.1.00 crore in FY09 (in the form of long term investments and stock in trade) wherein it takes a long/short term call on such investments based on the fundamentals of the company. While the company has a positive marked to market on the said investments as on date, ICRA believes that such proprietary positions not only exposes the company to the market risk associated with such investments but the profitability of the company could be impacted in case of any large mark to market losses on such investments. In terms of retail broking, RSL has a relatively small presence in retail equity broking and has a network of 5 company-owned branches servicing a client base of ~250 clients as on March 31, 2011. RSL is not active in the institutional broking business. As per the management, RSL's retail presence remains small due to intense competition from larger players in the broking industry. Going forward, the company has been setting up the required infrastructure for scaling its retail presence through a franchisee model as well as opening a few company owned branches. With limited retail participation, lesser arbitrage opportunities available in the market and also due to competition from other larger players in the market, RSL's client broking market share (including proprietary trading volume) has declined to 0.025% in FY11 from 0.043% in FY10 and 0.051% in FY09. Although the company has taken membership with MCDX for commodity trading, the commodity brokerage subsidiary does not execute client trades, and is instead used to execute proprietary trades only. RSL's revenue profile remains largely concentrated on trading and investment income on its proprietary investments. On account of deteriorating capital market conditions, RSL's broking income (net) fell sharply from INR0.67 crores in FY10 to INR0.26 crores in FY11. Additionally the trading income also reduced from INR2.52 crores in FY10 to INR1.97 crores in FY11. The company reported total revenues of INR2.83 crores in FY11, a decrease of 26% as compared to previous year. However, RSL's operating expenses contracted by 15% to INR1.88 crores in FY11 mainly due to lower outgo for Securities Transaction Tax (STT) at INR0.87 crore (Rs.1.27 crore in FY10) on account of lower trading volumes in FY11. Consequently, RSL reported a net profit to INR0.35 crore in FY11 as compared to INR0.75 crore in FY10. For the half year ended September 30, 2011, RSL registered Net Broking income of INR0.10 crores, and Trading income of INR1.58 crores. This allowed the company to post a net profit of INR0.48 crores. RSL has taken adequate steps to mitigate the credit risks and market risks associated with the retail broking and arbitrage trading business. In terms of arbitrage trading, the company has put in place dealer wise limits, scrip wise limits and constant monitoring of dealer's position ensuring that the dealers don't keep any open positions. However, the company may be exposed to the market risk in its jobbing and long term investment positions. Asset Liability profile of the company is moderate with a networth of INR15.15 crore as on March 31, 2011, negligible debt levels, adequate bank lines available with the company and liquid nature of the proprietary trading book where the company has the flexibility to place such shares with the banks to avail banking limits or square-up such positions to meet any increased margin requirement at the exchange houses. RSL gearing level also remains moderate at 0.48 times as on March 31, 2011 (0.33 times as on March 31, 2010). About Rakhecha Securities Rakhecha Securities Limited, incorporated in 1994, is primarily engaged in proprietary trading activities including arbitrage, jobbing and long investments. The company also has a small presence in retail broking activities with 5 company owned branches as on March 31, 2011. On a standalone basis, the company has reported a net profit of INR0.35 crore on a networth of INR15.15 crore in March 31, 2011 as compared to a net profit of INR0.75 crore on a networth of INR14.70 crore for the year ending March 31, 2010. For the Half year ended September 30, 2011, RSL posted a Net Profit of INR0.48 crores on a total income of INR1.73 crores. RADHESHYAM FIBERS: ICRA Reaffirms '[ICRA]BB-' Long-Term Rating -------------------------------------------------------------- ICRA has reaffirmed the long-term rating of Radheshyam Fibers Pvt. Ltd. at '[ICRA]BB-' for INR16 crore fund based facilities. The outlook on the long term rating is Stable. The rating reaffirmation continues to factor in the company's highly leveraged capital structure, low coverage indicators; and the fragmented nature of the industry resulting in high competitive intensity. Further, the company is exposed to adverse movement in raw material prices which coupled with low value addition nature of the work, keeps the profitability metrics and cash accruals at modest levels. The rating however, favorably factors in the long standing experience of promoters in the industry and company's proximity to the raw material sources which ensure easy availability of cotton. Going forward the company's ability to maintain the sales volume growth and maintain adequate margins with improving the capital structure will be key factors About Radheshyam Fibers RFPL was set up in 2004 by Mr. Ramnik Bhai Bhalara and his brothers to manufacture cotton bales. . The Company has ginning and pressing facility for processing raw cotton into bales. The company also sells cotton seeds, a byproduct obtained after removing the lint from raw cotton. The manufacturing facility of the company is located in the cotton belt of Gondal district in Rajkot, Gujarat. The installed capacity of the firm is 450 bales per day( 24 hours operation). The company has another group company Radheshyam Fiber (Gujarat) Private Limited which is also a ginning unit having manufacturing located in Maharashtra. Recent results RFPL reported a profit after tax (PAT) of INR0.25 crores on an operating income of INR127.74 crores in 2010-11, against a PAT of INR0.12 crores on an operating income of INR79.66 crores in 2009-10. RAIGARH IRON: ICRA Suspends '[ICRA]BB' INR8.4cr Bank Lines Rating ----------------------------------------------------------------- ICRA has suspended '[ICRA]BB' rating assigned to the INR8.40 crore bank lines of Raigarh Iron Industries Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. ICRA will withdraw the rating in case it remains under suspension for a period of three years. Raigarh iron Industries Limited, a fully promoter owned company, is presently engaged in the production of sponge iron, with an installed capacity of 24,000MT per annum. The unit has two kilns of 50TPD (tons per day) capacity, making it a small-scale producer of sponge iron. Production is achieved by employing the traditional coal-based process, but the company does not have its captive mines or a power generation plant. However, the unit is located at Punjipatara village, about 21km away from Raigarh, which is located close to the iron and coal rich areas of Jharkhand, Orissa and Chhattisgarh. REMI EDELSTAHL: ICRA Reaffirms '[ICRA]BB+' Long-Term Rating ----------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]BB+' to the INR13.0 crore (enhanced from INR6.28 crore) term loan and the INR35.00 crore (enhanced from INR30.0 crore) fund-based bank facilities of Remi Edelstahl Tubulars Limited. The long-term rating has been assigned a 'stable' outlook. ICRA has also reaffirmed the short-term rating of '[ICRA]A4+' to the INR55.0 crore (enhanced from INR45.0 crore) non-fund based bank facilities of RETL. The rating reaffirmations take into account the extensive experience of the promoters of RETL in the manufacture of stainless steel (SS) pipes and tubes; established brand image developed among its reputed customer base through its ability to maintain quality and consistency across products; an improvement in its operating performance in 2010-11, which has continued in the current financial year and a healthy order book position of INR103 crore as on Oct. 31, 2011. The ratings are, however, constrained by low, yet improving profitability in 2010-11 and in the current financial year due to low capacity utilization and high raw material costs; weak business return indicators; increased gearing levels due to higher working capital borrowings; exposure to volatility in raw material prices and exchange rate fluctuations, given its dependence on imports and its depressed debt protection metrics in 2010-11 and in the first half of the current financial year due to low profitability and increased debt levels. ICRA notes that RETL is in the process of setting up three additional pilger machines and one ultra-sonic testing machine by the end of the current financial year at an estimated cost of INR13.5 crore, to be funded through a mix of a term loan and internal accruals with a project gearing of 2.0 time. While the proposed debt-funded capital expenditure is expected to enhance the capacity and augment the product portfolio of RETL, it is also likely to strain its capital structure in the short-to-medium term. About Remi Edelstahl Incorporated in 1970, Remi Edelstahl Tubulars Limited is promoted by Mr. Chiranjilal Saraf & Mr. Vishwambharlal Saraf. RETL, part of the REMI group, is engaged in the manufacture of SS pipes and tubes with a capacity of 10,445 metric tonnes per annum (MTPA). The company manufactures SS welded and seamless pipes and tubes, which are used in petrochemical plants, refineries, power plants, paper, pharmaceutical and chemical industries. The company has also installed two wind mills at Dhule, Maharashtra, with a total capacity of 2.25 MW. In 2010-11, RETL reported a profit after tax (PAT) of INR0.9 crore on the back of net sales of INR127.7 crore. As per the half yearly results for 2011-12 (unaudited), RETL reported a PAT of INR0.6 crore on the back of net sales of INR74.4 crore. SHYAM INDUSTRIES: ICRA Reaffirms '[ICRA]BB+' Long Term Rating ------------------------------------------------------------- ICRA has reaffirmed the '[ICRA]BB+' rating assigned to the INR0.36 crore (reduced from INR0.38 crore) long term fund based limits of Shyam Industries. ICRA has also reaffirmed the '[ICRA]A4+' rating assigned to the INR10.00 crore (enhanced from INR6.00 crore) short term fund-based limits of Shyam Industries. The outlook on the long term rating continues to remain Stable. The rating reaffirmation takes into account the comfortable financial profile of the firm with low gearing and healthy debt coverage indicators with no significant term liabilities, the significant experience and established track record of the promoters in the processing and export of sesame seeds and the established relationship with the customers who have given repeat orders in the past. The ratings also takes into account the favorable demand prospects for sesame seeds exports from India over the long term with India being one of the largest producer and exporter in the global markets, though the demand is expected to remain subdued in the near term due to demand slowdown in Europe and U.S.A. The ratings are constrained by the partnership nature of the firm which coupled with modest scale of operations limits the financial flexibility and economies of scale, regular withdrawal of the profits by the partners from the firm, the firm's vulnerability to intense competition in a fragmented industry which results in low profitability and high dependence on exports which results in susceptibility to foreign exchange fluctuations, demand fluctuations and regulatory changes in the export markets. ICRA notes that the firm's profitability is dependent on the prices of sesame seeds which are influenced by global prices and the procurement prices which are in turn dependent on the domestic agro climatic conditions. Any divergence in the international and domestic factors can lead to pressure on the margins. Moreover, continuation of the export incentives which contributed to ~82% of the total operating profits of the firm in 2010-11, would be critical in sustaining the profitability and competitiveness of the firm in the export markets. While the firm's profitability is expected to remain modest given the fragmented nature of the industry, change in the constitution of the firm from a partnership and an increase in the scale of operations which shall improve the financial flexibility and result in economies of scale would be key rating sensitivities going forward. About Shyam Industries Shyam Industries is a partnership firm engaged in the processing and export of hulled and natural sesame seeds for more than two decades. The company has an installed capacity of processing 35 tonnes per day (tpd) of sesame seeds in Ahmedabad, Gujarat. The company is ISO 22000:2005 certified and also has HACCP certification from SGS, Switzerland. TURBO TECH: ICRA Assigns '[ICRA]B-' Rating to INR4cr Based Limits ----------------------------------------------------------------- ICRA has assigned the ratings of '[ICRA]B-' to INR4.00 Crore fund based limits and '[ICRA]A4' to the INR3.50 Crore non fund based limits of Turbo Tech Precision Engineering Private Limited. Rating Rationale ICRA's rating action is constrained by the modest turnover of the company and hence low bargaining power with the customers, which in turn has resulted high levels of debtors and inventory levels. TPEPL has suffered losses for past three consecutive years, owing to cancelled export orders and high fixed cost base of the company. The ratings are also constrained by modest financial risk profile of the company as reflected by modest debt coverage indicators. However, the ratings favorably factor in experienced management and improvement in the order book size and diversification. Further, recent infusion of funds by the shareholders has led to a favorable capital structure. About Turbo Tech Turbo Tech Precision Engineering Private Limited was incorporated in 1989 and manufacturers steam turbines in the range of 50 kW to 3 MW. These steam turbines are supplied to cogeneration projects in distillery, paper, pharma and textile companies as well as in concentrated solar power (CSP) projects. TPEPL also supplies oil coolers for turbo engines and up-lock systems used in aircraft landing gears and also operate as an energy leasing company, where it installs and operates mini power plants. In FY2011, it reported an Operating income of INR6.95 Cr and Operating loss before depreciation and interest of INR2.21 Cr and net loss of INR3.35 Cr. ========= K O R E A ========= * SOUTH KOREA: Businesses Face Dire Financial Situation in Q1 ------------------------------------------------------------- Yonhap News Agency reports that South Korea's businesses are bracing for unfavorable financial conditions in the first quarter of this year, mainly due to sluggish economic growth and falling sales and profits, a poll showed Wednesday. The survey of 500 companies by the Korea Chamber of Commerce and Industry (KCCI) showed the business survey index on corporate finance (FBSI) dropping to 79 for the January-March period from 92 three months earlier, the new agency reports. ==================== N E W Z E A L A N D ==================== CRAFAR FARMS: Landcorp in Talks to Run Farms for Chinese Buyer -------------------------------------------------------------- BusinessDesk reports that state-owned Landcorp Farming is in talks to operate the Crafar Farms should Shanghai Pengxin Group's application to the Overseas Investment Office succeed but it has denied a report it would pay NZ$18 million a year in rent. "The reports are quite untrue -- there is no figure yet," Chris Kelly, Landcorp chief executive, told BusinessDesk. "We are discussing the possibility of running the farms -- we had all hoped to have it sorted by now." BusinessDesk says the Chinese company has been waiting almost nine months for an answer to its application to buy the farms, in a deal that is reportedly worth at least NZ$200 million. That would top a rival proposal by a farmer group led by businessman Michael Fay by NZ$30 million, the report notes. Hardie Peni, chairman of the Tiroa E and Te Hape B Trusts which are part of the Fay group, said the NZ$18 million figure was based on a standard share-milking agreement and Landcorp's own production forecasts, according to the report. "From what we're hearing, Landcorp have negotiated a deal that is the standard 50-50 share-milking deal familiar to the wider dairy industry," the report quotes Mr. Peni in a statement. The Landcorp plan would result in a state-owned company paying rent to "Chinese sitting in Shanghai" as "tenants on what was our own New Zealand farm land." According to BusinessDesk, the investment banker and a syndicate of local iwi and farmers lodged a NZ$171.5 million bid for the Crafar family farms in September, as a back-up to a rival offer from Shanghai Pengxin being turned down by the OIO. The purchase of large blocks of farmland by foreigners has been in the government's sights after the Natural Dairy deal for the Crafar farms emerged in 2010, prompting the government to review foreign investment rules and ultimately impose stricter controls, the report discloses. About Crafar Farms Crafar Farms, New Zealand's largest family owned dairy business, runs about 20,000 milking cows, and carries about 10,000 of other stock. The company employed 200 staff. Crafar Farms was placed in receivership in October 2009, by its lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson Finance. The banks, owed around NZ$200 million, put KordaMentha partners Michael Stiassny -- mstiassny@kordamentha.com -- and Brendon Gibson -- bgibson@kordamentha.com -- in as receivers after Crafar Farms breached covenants on its loans. The latest report on the four Crafar companies in receivership -- Plateau Farms, Ferry View Farms, Hillside and Taharua -- said their bank debt in October was NZ$256 million, according to BusinessDay.co.nz. As reported in the Troubled Company Reporter-Asia Pacific on April 27, 2010, The New Zealand Herald said 16 farms in the Crafar Farms group have been placed onto the open market for sale by Crafar's receivers through Bayleys Real Estate. Bayley's said the receivership sale is the single largest receivership sale of farms in New Zealand history. The 16 farms employ nearly 200 staff and managers and cover 8,000 hectares. They are located in the Waikato, near Benneydale in the King Country, Reporoa, Atiamuri, Waverley, Hawera and Bulls. VIRGIN AUSTRALIA: Pacific Blue Incurs NZ$7.35-Mil. Annual Loss -------------------------------------------------------------- Fairfax NZ News reports that Virgin Australia's New Zealand operation has reduced its losses after ditching domestic services more than a year ago but is still struggling to make money on the trans-Tasman route. In the face of stiff competition from Emirates, Qantas and Jetstar, Pacific Blue posted a loss of NZ$7.35 million for the year to June 30, compared with a NZ$19.8 million loss a year earlier, according to accounts just released. The period includes three months of flying domestic routes in New Zealand, which it dumped in October 2010 because of heavy losses, according to Fairfax NZ. Pacific Blue Airlines operates low-fare air services between New Zealand and Australia, and Australia to South Asia. The company is New Zealand subsidiary of Virgin Blue. ========= N E P A L ========= UNITED DEVELOPMENT: Central Bank to Start Liquidation Process ------------------------------------------------------------- myrepublica.com reports that Nepal Rastra Bank (NRB) on Monday decided to initiate the process of liquidating troubled United Development Bank (UDB) after the bank failed to improve its financial health within the timeframe allotted by the central bank. The NRB will now ask the bank to submit written explanation on "why it should not be liquidated" within 15 days, myrepublica.com says. According to the report, NRB officials call this step only a formality, which has to be conducted before starting the liquidation process of any financial institution, as "in most of the cases the troubled institution cannot justify why the central bank should not terminate its operation permanently". "Once the bank's application is rejected by the central bank, the case will move to the court, which will appoint a liquidator to shut down operation of the bank and settle all the accounts," an official of the NRB told myrepublica.com. myrepublica.com recalls that UDB was declared a troubled institution last March after the NRB found its financial health had suffered heavily after its executive chairman, Rabindra Bahadur Singh, siphoned off INR65 million of the paid-up capital for personal use. At that time, NRB inspections had found that Mr. Singh had created fake loans in an attempt to hoodwink the regulator and make it believe the money he embezzled was borrowed by customers, the report relays. United Development Bank is a district level development bank in Bara established with a paid up capital of INR85 million. ===================== P H I L I P P I N E S ===================== DEVELOPMENT BANK: Moody's Revises BFSR to 'D-' From 'D' ------------------------------------------------------- Moody's Investors Service has affirmed these ratings of the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LBP): Ba1/ NP local currency deposit rating; and Ba2/ NP foreign currency deposit rating. At the same time, Moody's has revised DBP's bank financial strength rating (BFSR) to D- from D. The D- maps to a Baseline Credit Assessment (BCA) of Ba3. LBP's BFSR/BCA remain unchanged at D-/Ba3. All of DBP's and LBP's ratings carry a stable outlook. Ratings Rationale The affirmation of DBP's and LBP's deposit ratings reflects the modest credit fundamentals of both banks, and which are, in turn, underpinned by their satisfactory capital and liquidity profiles, relative to similar Ba-rated peer banks. At the same time, it takes into consideration Moody's view of the banks' weaker risk positioning relative to other rated-Philippine banks, in terms of financial reporting transparency and corporate governance. DBP's and LBP's local currency long-term deposit ratings of Ba1 are supported by (1) the banks' Ba3 BCA and (2) Moody's assessment of a very high probability of systemic support, when required. This assessment is predicated on the banks' policy lending roles and sizable market positions, and which underpin Moody's view of their systemic significance to the Philippine banking sector, as well as the 100% ownership that the Philippine government has in both institutions. DBP's and LBP's foreign currency long-term deposit ratings of Ba2 are constrained at the sovereign ceiling for the Philippines. When compared with Moody's global Ba-rated bank average metrics, both DBP and LBP consistently maintained higher Tier 1 and Total capital ratios over the past three years; their liquidity profiles are also stronger, as reflected in their lower loans-to- deposits ratios and higher proportions of liquid assets in their asset bases. However, in contrast to the privately-owned Philippine banks, their audited financials for fiscal 2010 were reported with substantial delay, as in previous years. As of the date of this press release, both banks have yet to publish their annual reports for 2010. Moody's views the poor timeliness of their financial reporting as a credit negative. In addition to their policy lending roles, both DBP and LBP had in the past been utilized to undertake other government-linked transactions. This reflects the close links between the banks and the government. In Moody's opinion, this also reflects the high risk that the banks would continue to be involved in government- directed transactions that may weaken their financial strength. The stable outlook on the banks' ratings reflects expectations that they will maintain buffers in their liquidity positions and capital adequate for their current rating levels to withstand systemic stresses over the next 12-18 months. Moody's stress tests for LBP and DBP, which incorporate additional credit losses on their loan and foreclosed asset portfolios and the impact of these losses on their capital strength, show that their shock absorption capacity remains adequate at the D- BFSR level. Revision of DBP's BFSR The revision of DBP's BFSR to D- from D takes into account the bank's moderating asset quality and profitability over the last 12 months. Based on the bank's limited public disclosure of its recent financial performance, Moody's notes that DBP's non-performing loan (NPL) ratio had somewhat stabilized well above historical trend levels. At end-June 2011, its NPL ratio was 3.74%, higher than the 3.70% reported at end-December 2010 and 0.99% at end- December 2009. The increase was mainly caused by the default of certain lumpy credit exposures in 2010. DBP reported that its net income for 1H2011 fell 39% year-on-year to Pesos 1.74 billion. Moody's notes its weaker profitability was due mainly to thinner loan margins from higher funding costs. While DBP maintains capital adequacy and cost efficiency at levels surpassing industry averages, its overall credit profile now compares better with similar D- rated peer banks. Rating Triggers The following factors could result in upward pressure on DBP's and LBP's BFSR and BCA: (1) significant diversification of their funding sources that reduces their reliance on government-related funding and exposure to policy risks; and/or (2) improvement in the timeliness and transparency of financial reporting; and/or (3) significant reductions in credit risk concentrations in individual borrower and industry groups. As the banks' foreign currency deposit ratings are currently capped at the sovereign ceiling of Ba2, an upgrade of the sovereign ceiling could result in an upgrade of these ratings. Conversely, the following factors could result in downward pressure on DBP's and LBP's BFSR and BCA: (1) significant weakening in their operating environments or poorer underwriting practices, resulting in NPL ratios deteriorating from current levels, and/or (2) Tier 1 capital ratios falling below 12%, and/or (3) funding profiles showing signs of weakening from an increasing loans-to-deposits ratio for prolonged periods of beyond two quarters. The banks' foreign currency ratings may be pressured downwards if: (1) the sovereign ceiling is downgraded below Ba2; and/or (2) the banks' BFSR and BCA are downgraded; and/or (3) the systemic support for the banks is assessed to have fallen. Principal Methodologies The methodologies used in this rating were Bank Financial Strength Ratings: Global Methodology published in February 2007, and Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007. Headquartered in Manila, Philippines, the Development Bank of the Philippines reported total assets of PHP306.2 billion (USD7.0 billion) as at June 30, 2011. Headquartered in Manila, Philippines, Land Bank of the Philippines reported total assets of PHP590.6 billion (USD13.5 billion) as at September 30, 2011. =========== T A I W A N =========== JIH SUN: Fitch Affirms Shortterm Foreign Currency IDR at 'B' ------------------------------------------------------------ Fitch Ratings has affirmed Jih Sun Financial Holding Co., Ltd and its wholly-owned subsidiaries, Jih Sun International Bank and Jih Sun Securities Corp., Ltd, including their Issuer Default Ratings. The Outlooks are Stable. At the same time, Fitch has affirmed the entities' Individual and Support Ratings and withdrawn them as these ratings are no longer considered by Fitch to be relevant to the agency's coverage. JSH's IDRs are mainly driven by the financial strength of its principal operating subsidiary, JSS, but also take into account JSH's acceptable liquidity and double leverage. JSS's IDRs reflect its consistent profitability, modest risk exposures, satisfactory capitalisation and liquidity, which have been well- tested through numerous economic cycles. JSIB's IDRs reflect the obligatory support from its holding parent, which would most likely be sourced from JSS. Its IDRs also take into account continued improvement in its risk profile following several important reforms in 2005-2009, including a clean-up of the asset portfolio and an overhaul of its credit risk management framework. However, JSIB's standalone financial profile is weak -- as manifested in its' bb-' Viability rating -- and reflects its small franchise and weak operating performance. The Stable Outlook reflects Fitch's belief that JSIB would maintain reasonably sound asset quality and therefore stay profitable in the foreseeable future without reverting to the volatile performance in earnings and asset quality seen in 2005- 2009. Any weakening of credit standards and asset quality in JSIB that materially erode JSH's and JSS's earnings or core capital would lead to negative rating actions for JSH and its subsidiaries. JSH posted a modest profit in 2010 and 9M11 (return on average equity: 9.5%), after losses in 2008-2009. This reflected JSS's resilient earnings performance and JSIB's much improved asset quality. The group is likely to remain profitable in 2012 on expected control of credit cost in JSIB, although JSS's business flows and trading performance are susceptible to growing market uncertainty. JSH and its subsidiaries are adequately capitalized. JSH's sum- of-parts capital adequacy ratio was 159% at end-Q311, indicating excess capital of TWD8.3bn above the minimum regulatory requirement of 100%. JSIB's Tier 1 capital ratio remained sound at 10.9% at end-Q311, while JSS's capital adequacy ratio of 626% was comfortably above the 150% regulatory minimum. The liquidity profiles of JSH, JSS and JSIB remain adequate. Risks from JSH's reliance on short-term borrowing to finance its equity investments are partly mitigated by its sufficient interest cover, presently available bank facilities, and access to the capital market. JSS has a liquid balance sheet. JSIB's liquidity is actively managed by restrictive self-imposed loan- to-deposit and liquidity reserve ratios. JSIB and JSS are JSH's two main operating subsidiaries, and the group's major shareholders are US-based private-equity firm, Capital Target and Japan's Shinsei Bank, with equity interests of 24% and 35.8%, respectively. JSS is one of the larger and longest established securities companies in Taiwan, with a stock brokerage market share of 4% in 2010-9M11. Meanwhile, JSIB is a small bank in Taiwan with a deposit market share of 0.7% at end- Q311. The rating actions are as follows: JSH -- Long-Term Foreign Currency IDR affirmed at 'BB+'; Outlook Stable -- Short-Term Foreign Currency IDR affirmed at 'B' -- National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable -- National Short-Term Rating affirmed at 'F2(twn)' -- Individual Rating affirmed at 'C/D', withdrawn -- Support Rating affirmed at '5'; withdrawn -- Support Rating Floor affirmed at 'No Floor'; withdrawn -- Subordinated bond rating 'BBB(twn)' remains on Rating Watch Negative JSS -- Long-Term Foreign Currency IDR affirmed at 'BBB-'; Outlook Stable -- Short-Term Foreign Currency IDR affirmed at 'F3' -- National Long-Term Rating affirmed at 'A(twn)'; Outlook Stable -- National Short-Term Rating affirmed at 'F1(twn)' -- Individual Rating affirmed at 'C'; withdrawn -- Support Rating affirmed at '5'; withdrawn -- Support Rating Floor affirmed at 'No Floor'; withdrawn JSIB -- Long-Term Foreign Currency IDR affirmed at 'BB+'; Outlook Stable -- Short-Term Foreign Currency IDR affirmed at 'B' -- National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable -- National Short-Term Rating affirmed at 'F2(twn)' -- Viability Rating affirmed at 'bb-' -- Individual Rating affirmed at 'D'; withdrawn -- Support Rating affirmed at '3'; withdrawn WAN HAI: Moody's Changes 'Ba3' CFR Outlook to Negative ------------------------------------------------------ Moody's Investors Service has changed to negative from stable the outlook of Wan Hai Lines Limited's Ba3 corporate family rating and B1 senior unsecured bond rating. Ratings Rationale "The negative outlook reflects Moody's concerns that depressed freight rates and high bunker costs will continue to weigh on Wan Hai's profitability and operating cash flow in 2012," says Jonathan Lee, a Moody's Vice President and Senior Analyst. Moody's estimates that adjusted EBITDA margin in calendar 2012 will decline to around 10% from 26.5% in 2010. And operating cash flow is estimated to decline to NTD5.4 billion (USD180 million) from NTD10 billion (USD330 million) in 2010. "Moreover, the delivery of 12 new vessels in the next 18 months is adding new debt to Wan Hai and will increase adjusted debt to NTD68.9 billion (USD2.3 billion)," says Mr. Lee, adding, "This increase, combined with the decline in EBITDA, will result in a net adjusted debt leverage of 6.2x, which would be very high for the Ba3 rating". Nevertheless, the company has the flexibility to further scale down charter vessels and leased containers, which will release some operating lease obligations and reduce adjusted debt. Against a more challenging operating environment, Wan Hai will reduce part of the increased costs through rationalizing its charter fleet and cost structure, such as by slot swapping with its alliance partners and by maintaining a high level of liquidity. Wan Hai's Ba3 rating remains supported by its leading position in the intra-Asia liner market, its track record of operating through industry cycles, its good access to domestic capital and banking markets, its proactive operational and financial management, and its sound liquidity position. The size of its liquidity reserve -- cash of NTD27.3 billion (USD910 million) and liquid local marketable securities investments of NTD2.8 billion (USD93 million) as of 30 September 2011 -- provides a good buffer against challenges in this down market. Wan Hai's senior unsecured bond rating of B1 reflects the risk of legal subordination as its total amount of secured debt accounted for approximately 21% of total assets at end-September 2011, and is likely to stay above 20% of total assets. As the intra-Asia liner market will remain challenging, Moody's will continue to review the quarterly performances of Wan Hai. In case its performance is much weaker than expected, the ratings could come under downgrade pressure. Moody's would downgrade the rating if EBITDA margin further weakens; or operating cash flow turns negative for an extended period; and/or its liquidity reserve depletes materially. Under such scenarios, adjusted EBITDA/interest coverage could fall below 2.5-3.0x, adjusted Net Debt/ EBITDA could rise above 5.0x, and cash balances decrease to less than 15% of total assets on a sustained basis. A rating upgrade in the near term is unlikely, given the negative outlook. However, the outlook could return to stable if Wan Hai recovers its operating profitability and its credit metrics improve, with adjusted EBITDA/interest above 4.0x; and adjusted Net Debt/EBITDA of 4.0-4.5x. The principal methodology used in rating Wan Hai Lines Limited was the Global Shipping Industry Methodology published in December 2009. Established in Taiwan in February 1965 as a lumber-transport company, Wan Hai currently operates a fleet of 78 container vessels (61 self-owned and 17 chartered) with a service network which spans Asia, including major ports in Taiwan, Japan, China, Korea and ASEAN countries. Wan Hai's shares were listed on the Taiwan Stock Exchange in May 1996. =============== 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 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 39.20 -31.86 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 CONTEL CORP LTD CTEL 59.32 -45.72 DONGXIN ELECTR-A 600691 14.82 -23.94 GUANGDONG ORIE-A 600988 15.71 -3.91 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 240.40 -64.41 HUASU HOLDINGS-A 509 94.81 -12.27 HUNAN ANPLAS CO 156 45.35 -32.70 JILIN PHARMACE-A 545 34.73 -7.31 JINCHENG PAPER-A 820 198.46 -130.71 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 56 256.62 -28.92 SHENZ INTL ENT-B 200056 256.62 -28.92 SHENZHEN DAWNC-A 863 26.83 -165.43 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 201.92 -115.27 TAIYUAN TIANLO-A 600234 67.43 -22.23 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 WUHAN BOILER-B 200770 317.76 -162.36 WUHAN GUOYAO-A 600421 11.22 -28.07 WUHAN LINUO SOLA 600885 106.01 -9.03 XIAMEN OVERSEA-A 600870 257.06 -137.85 XIAN HONGSHENG-A 600817 15.98 -296.67 YANBIAN SHIXIA-A 600462 204.56 -22.61 YANTAI YUANCHE-A 600766 63.90 -6.36 YIBIN PAPER IN-A 600793 144.18 -2.37 YUEYANG HENGLI-A 622 37.67 -21.61 HONG KONG 0.00 0.00 BEP INTL HLDGS L 2326 10.32 -1.83 BUILDMORE INTL 108 16.57 -57.57 CHINA COMMUNICAT 8206 11.52 -27.35 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 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 24.87 -16.51 PALADIN LTD 495 158.18 -11.60 PCCW LTD 8 6,248.35 -31.61 PROVIEW INTL HLD 334 314.87 -294.85 REORIENT GROUP 376 15.67 -14.24 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 68.05 -67.58 INDONESIA ARPENI PRATAMA APOL 613.56 -124.15 ASIA PACIFIC POLY 429.86 -844.66 ERATEX DJAJA ERTX 11.52 -21.74 HANSON INTERNATI MYRX 33.41 -7.32 HANSON INT-PREF MYRXP 33.41 -7.32 JAKARTA KYOEI ST JKSW 30.64 -43.02 MITRA INTERNATIO MIRA 1,070.80 -443.66 MITRA RAJASA-RTS MIRA-R2 1,070.80 -443.66 MULIA INDUSTRIND MLIA 493.52 -46.89 PANASIA FILAMENT PAFI 34.26 -18.96 PANCA WIRATAMA PWSI 30.18 -37.45 TOKO GUNUNG AGUN TKGA 13.76 -0.87 UNITEX TBK UNTX 17.85 -17.89 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 11.31 -0.41 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 22.23 -15.85 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 78.28 -4.14 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 PREMIER SYNTHET PRS 12.55 -8.26 QUADRANT TELEVEN QDTV 188.57 -116.81 QUINTEGRA SOLUTI QSL 24.66 -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 KRISHNA SHKP 19.89 -0.71 SHREE RAMA MULTI SRMT 62.15 -42.08 SIDDHARTHA TUBES SDT 76.98 -12.45 SOUTHERN PETROCH SPET 407.16 -200.86 SQL STAR INTL SQL 10.58 -3.28 STERLING HOL RES SLHR 66.77 -2.85 STI INDIA LTD STIB 35.39 -0.54 STORE ONE RETAIL SORI 15.48 -59.09 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 24.23 -12.34 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 CROWD GATE CO 2140 11.63 -4.29 DDS INC 3782 18.69 -0.08 FUJITSU COMP LTD 6719 398.22 -2.90 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 MISONOZA THEATRI 9664 71.18 -4.66 NEXT JAPAN HOLDI 2409 177.68 -5.08 NIS GROUP CO LTD NISZ 477.70 -75.44 NIS GROUP CO LTD 8571 477.70 -75.44 PROMISE CO LTD 8574 11,162.39 -661.54 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 ENGINEERIN 6440 880.70 -22.42 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 VTI VINTAGE BHD VTI 20.92 -3.48 PHILIPPINES CYBER BAY CORP CYBR 13.99 -95.62 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 SYNERGY GRID & D SGP 236.14 -17.93 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 91.74 -10.10 LINDETEVES-JACOB LJ 22.43 -6.01 NEW LAKESIDE NLH 19.34 -5.25 SUNMOON FOOD COM SMOON 19.85 -13.04 TT INTERNATIONAL TTI 233.01 -78.01 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/F 38.87 -46.47 K-TECH CONSTRUCT KTECH 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 CO 2341 41.94 -1.02 BEHAVIOR TECH-EC 2341O 41.94 -1.02 CHIEN TAI CEMENT 1107 195.99 -57.35 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 VERTEX PRECISION 5318 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, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. 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 Peter Chapman at 240/629-3300. *** End of Transmission ***