/raid1/www/Hosts/bankrupt/TCRAP_Public/120911.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
Tuesday, September 11, 2012, Vol. 15, No. 181
Headlines
A U S T R A L I A
AUSTASIA MILLING: Wins 30-Day Reprieve From Liquidation
ST HILLIERS: Offers 25% Payment to Prison Subcontractors
STORM FINANCIAL: Trial Over Collapse to Start Next Week
* S&P Puts Ratings on 38 Hybrid Capital Instruments on Watch Pos
C H I N A
CHINA EVERBRIGHT: Moody's Affirms 'D-' BFSR; Outlook Stable
H O N G K O N G
BEACON ENTERTAINMENT: Court to Hear Wind-Up Petition on Oct. 10
CAPITAL NO. 1: Court to Hear Wind-Up Petition on Oct. 17
CELLCAST (ASIA): Creditors and Contributories to Meet on Sept. 21
CRAZY CREATIONS: Court to Hear Wind-Up Petition on Oct. 10
CULINARIA KALEIDOSCOPE: Court to Hear Wind-Up Petition on Oct. 3
EURO SWISS: Tsz and Lai Appointed as Liquidators
FOREFRONT INT'L: Maund and Gaspar Step Down as Liquidators
HILHWA LIMITED: Court to Hear Wind-Up Petition on Oct. 10
HK SZYY: Court to Hear Wind-Up Petition on Oct. 17
HONG KEUNG: Court to Hear Wind-Up Petition on Oct. 10
I N D I A
AAHELI HEALTHCARE: CRISIL Rates INR107.5MM Loan at 'CRISIL B-'
ARVIND REMEDIES: CRISIL Upgrades Rating on INR1.78BB Loans
AS STEEL: Inadequate Info Cues Fitch to Migrate Ratings
NRP PROJECTS: Fitch Assigns 'BB+' National Long-Term Rating
P K THAKUR: CRISIL Assigns 'D' Ratings to INR89.7MM Loans
RAMA SACKS: CRISIL Assigns 'B' Rating to INR75MM Loans
REDDY AGRO: CRISIL Assigns 'B+' Rating to INR81.9MM Loans
RUDRA TECHNO: Inadequate Info Cues Fitch to Migrate Ratings
SABER PAPER: Delay in Loan Payment Cues CRISIL Junk Ratings
SRINIVASA CONSTRUCTION: CRISIL Ups Rating on INR300MM Loan to 'B'
SVARN INFRATEL: Delay in Loan Payment Cues CRISIL Junk Ratings
SVARN TELECOM: CRISIL Cuts Rating on INR137.5MM Loans to 'B'
SVARN TEX: Delay in Loan Payment Cues CRISIL Junk Ratings
VIKASH METAL: aFitch Withdraws 'C(ind)' National Longterm Rating
I N D O N E S I A
GOLDEN AGRI-RESOURCES: Moody's Lifts CFR to Ba2; Outlook Stable
J A P A N
ELPIDA MEMORY: Bondholders Want to Keep Right for Involuntary
M O N G O L I A
TRADE AND DEVELOPMENT: Moody's Rates Sr. Unsecured Notes 'B1'
N E W Z E A L A N D
CAIRNS GROUP: Units in Receivership, To Sell Businesses
RYANNA FARMING: Placed Into Voluntary Liquidation
X X X X X X X X
* BOND PRICING: For the Week Sept. 3 to Sept. 7, 2012
- - - - -
=================
A U S T R A L I A
=================
AUSTASIA MILLING: Wins 30-Day Reprieve From Liquidation
-------------------------------------------------------
Cowra Community News reports that creditors of AustAsia Milling
Pty Ltd, formerly the Young Flour Mill, have granted a reprieve
to the landmark plant, holding off liquidation for at least 30
days.
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 8, 2012, SmartCompany said AustAsia Milling is on the market
after entering administration with AUD9 million in debt. John
Vouris and Bradley Tonks of Lawler Partners were appointed as
administrators on July 27, 2012, and the business was advertised
for sale "as a going concern."
According to Cowra Community News, hopes are now held that the
company can be sold or a deed of company arrangement agreed upon.
A spokesman for administrators Sydney-based Lawler Partners said
only one insufficient offer had been made to buy the company in
the month before last Friday's meeting of creditors in Young, the
report says.
About Young Stock Feeds
Established in 1888, AustAsia Milling Pty Ltd --
http://www.austasiamilling.com/-- is a supplier in the flour
milling, stockfeed and grain industries. The 124-year-old
business also trades as Young Stock Feeds.
ST HILLIERS: Offers 25% Payment to Prison Subcontractors
--------------------------------------------------------
ABC News reports that subcontractors on the collapsed Ararat
Prison redevelopment said the receiver has offered to pay only a
quarter of what they are owed.
The project has been in limbo since the lead builder, St Hilliers
Ararat, went into liquidation in May owing about AUD25 million to
businesses working on site, ABC News says.
ABC News relates that the receiver, KordaMentha, has now offered
14 subcontractors a deal that will see them paid about 25% of the
money they are owed.
According to the report, the spokesman for the subcontractors,
Grant Wright, said the Government promised they would be paid in
full. "The money that is being offered is no where near enough
to rebound the companies that have been effected," the report
quotes Mr. Wright as saying.
Mr. Wright is warning that unless the payment is increased,
subcontractors will be forced into liquidation, ABC News adds.
As reported in the Troubled Company Reporter-Asia Pacific on
May 17, 2012, St Hilliers Construction Pty Ltd said it had
appointed Trent Hancock and Michael Hird of Moore Stephens Sydney
Corporate Recovery Group as voluntary administrators. An
associated company, St Hilliers Ararat Pty Ltd is part of a
consortium contracted to undertake the AUD350 million expansion
of the Ararat Prison in central Victoria. St Hilliers Ararat Pty
Ltd has at the same time been placed into liquidation. The
administration of St Hilliers Construction Pty Ltd is due to
exposure under guarantees for debts of St Hilliers Ararat Pty Ltd
relating to the Ararat Prison project in Victoria.
St Hilliers Group is an Australian property group providing
services in property development, contracting and funds
management.
St Hilliers Construction Pty Ltd is the construction arm of the
St Hilliers Group.
STORM FINANCIAL: Trial Over Collapse to Start Next Week
-------------------------------------------------------
The Australian Associated Press reports that a trial over the
collapse of Storm Financial has been set back a week but should
be over by Christmas.
AAP relates that the trial, which was expected to blow out to
five months, was due to begin in the Federal Court in Brisbane
Monday. However, it has been adjourned for a week so preliminary
matters can be dealt with, the report says.
According to the news agency, the court heard Monday that lawyers
for the Australian Securities and Investments Commission, the
Commonwealth Bank of Australia, Macquarie Bank and the Bank of
Queensland will agree on a schedule before next week to help make
proceedings run more quickly.
AAP says many of the 98 witnesses listed will now only need to
take the stand if their evidence is required to resolve a factual
dispute at the trial, which relates to the collapse of Storm
Financial in 2008.
The report relates that Justice John Reeves told the court he
wanted the trial to run "as efficiently as possible".
According to AAP, Justice Reeves said initially "millions" of
pages of documents would form part of the evidence at the trial,
but that would hopefully be reduced to "hundreds".
AAP notes that ASIC is pursuing action against the banks, seeking
compensation and orders for them to improve their standards.
Many Storm clients are also involved in a class action against
the banks which will run in conjunction with the ASIC matter, and
the CBA has lodged a counter-claim against at least one investor,
the report relays.
AAP adds that ASIC alleges the three banks committed numerous
breaches through their involvement with the operation, including
unconscionable conduct and operation of an unregistered managed
investment scheme. The banks deny the allegations.
About Storm Financial
Storm Financial Limited -- http://www.stormfinancial.com.au/--
operated in the Australian wealth management industry. The
company managed over one trillion dollars in investment fund
assets for over nine million investors, distributed through
investment administration providers and financial adviser. The
funds were invested through different investment products and
structures, including superannuation, non-superannuation managed
funds and life insurance products. Non-superannuation managed
funds, which form the majority of Storm's products, total
approximately 26.5% of total investment fund assets in Australia,
as of June 30, 2007.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 14, 2009, Storm Financial Ltd. appointed Worrells Solvency &
Forensic Accountants as voluntary administrators after the
Commonwealth Bank of Australia demanded debt repayment of around
AUD20 million.
Storm later closed its business and fired all of its 115 staff.
The closure, the company's administrators said, was due to the
significant reduction in Storm's income resulting in trading
losses being incurred "at a rate which the company could no
longer absorb."
The TCR-AP reported on Jan. 22, 2009, that the CBA, Storm's
largest creditor, lodged a AUD27.09 million debt claim at a first
meeting of the company's creditors on Jan. 20, 2010. The group's
remaining creditors are owed AUD51 million, plus a provision for
dividends of AUD10 million.
In March 2009, the Australian Securities and Investments
Commission won its bid to liquidate Storm Financial after the
Federal Court ruled that the Company be wound up. Federal court
Justice John Logan appointed Ivor Worrell and Raj Khatri of
Worrells Solvency and Forensic Accountants as liquidators for the
Company.
* S&P Puts Ratings on 38 Hybrid Capital Instruments on Watch Pos
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on 38
hybrid capital instruments issued by eight Australian banking
groups and their subsidiary companies on CreditWatch with
positive implications. This follows a statement by the Australian
Prudential Regulation Authority (APRA), on Sept. 4, 2012,
concerning Basel III capital requirements.
"The ratings affected by this announcement include those on
preference shares, junior subordinated debt, and other hybrid
instruments issued by Australian financial institutions. Our
counterparty credit ratings on these institutions are unaffected,
because our view of their overall risk profiles, excluding
affected hybrid capital instruments, is unchanged," S&P said.
"APRA intends to remove the requirement for its approval of
payments by Australian-incorporated authorized deposit-taking
institutions (ADIs) in relation to Additional Tier 1 and Tier 2
instruments, for future and current outstanding issues. The
announcement by APRA is likely to increase Standard & Poor's
confidence concerning the repayment capacity of Australian banks
on their hybrid capital obligations," S&P said.
Standard & Poor's will evaluate further the impact of APRA's
announcement as details become available, noting that APRA has
announced that it will provide more information by Sept. 30,
2012. Standard & Poor's expects to resolve the CreditWatch within
90 days, pending further clarity regarding APRA's intentions
concerning the announcement and other Basel III implementation
matters in the Australian banking sector.
"We note that the potential raising of the affected hybrid
capital instrument ratings as implied by our CreditWatch positive
placement is likely to be limited to one notch. In addition, a
CreditWatch listing does not mean a rating change is inevitable,"
S&P said.
RATINGS LIST
Ratings On CreditWatch with Positive Implications
Issuer: To From
Australia and New Zealand Banking Group Ltd.
Preferred Stock (3 issues) BBB/WatchPos BBB
Junior Subordinated (1 issue) BBB/WatchPos BBB
ANZ National Bank Ltd.
Junior Subordinated (1 issue) BBB/WatchPos BBB
Commonwealth Bank of Australia
Preferred Stock (2 issues) BBB/WatchPos BBB
Other Preferred Stock (1 issue) BBB-/WatchPos BBB-
Junior Subordinated (1 issue) BBB/WatchPos BBB
CBA Capital Trust
Junior Subordinated (1 issue) BBB/WatchPos BBB
CBA Capital Trust II
Junior Subordinated (1 issue) BBB/WatchPos BBB
ASB Capital Ltd.
Junior Subordinated (1 issue) BBB/WatchPos BBB
ASB Capital No.2 Ltd.
Junior Subordinated (1 issue) BBB/WatchPos BBB
Bank of Western Australia Ltd.
Junior Subordinated (1 issue) BBB/WatchPos BBB
Preferred Capital Ltd.
Preferred Stock (1 issue) BBB-/WatchPos BBB-
National Australia Bank Ltd.
Preferred Stock (2 issues) BBB/WatchPos BBB
Junior Subordinated (3 issues) BBB/WatchPos BBB
National Capital Instruments [Euro] LLC 2
Junior Subordinated (1 issue) BBB/WatchPos BBB
National Capital Trust III
Junior Subordinated (1 issue) BBB/WatchPos BBB
BNZ Income Securities Ltd.
Preferred Stock (1 issue) BBB/WatchPos BBB
BNZ Income Securities 2 Ltd.
Preferred Stock (1 issue) BBB/WatchPos BBB
Westpac Banking Corp.
Preferred Stock (2 issues) BBB/WatchPos BBB
Junior Subordinated (3 issues) BBB/WatchPos BBB
Macquarie Bank Ltd.
Preferred Stock (1 issue) BB+/WatchPosB BB+
Macquarie Capital Loans Management Ltd.
Preferred Stock (1 issue) BB/WatchPos BB
Macquarie PMI LLC
Preferred Stock (1 issue) BB/WatchPos BB
Macquarie Finance Ltd.
Junior Subordinated Debt (1 issue) BB+/WatchPos BB+
Suncorp-Metway Ltd.
Preferred Stock (2 issues) BBB+/WatchPos BBB+
Bendigo and Adelaide Bank Ltd.
Preferred Stock (2 issues) BBB-/WatchPos BBB-
Bank of Queensland Ltd.
Preferred Stock (1 issue) BB+/WatchPos BB+
=========
C H I N A
=========
CHINA EVERBRIGHT: Moody's Affirms 'D-' BFSR; Outlook Stable
-----------------------------------------------------------
Moody's Investors Service has affirmed China Everbright Bank's
(CEB) Baa3 long-term foreign currency deposit rating and Prime-3
short-term foreign currency rating.
The rating outlook is stable.
Moody's has also affirmed CEB's standalone bank financial
strength (BFSR) of D-, which maps to a baseline credit assessment
(BCA) of ba3 on the long-term scale. However, Moody's has revised
the outlook on the BFSR to stable from positive.
Ratings Rationale
The revision to a stable outlook for the BFSR follows CEB's
announcement on August 27, 2012 that it was suspending its plan
to raise capital via an IPO on the Hong Kong Stock Exchange,
given weak capital market conditions.
CEB will now have to rely mainly on internally generated capital
to replenish its capital base. Given the expected downward
pressure on profitability and asset quality -- due to declining
interest rates and the gradual deregulation of interest rates,
combined with the slowdown in the Chinese economy -- Moody's
anticipates that the bank's earnings growth and capital
generation will moderate. As a result, the probability of CEB's
BFSR/BCA being upgraded has diminished.
CEB's BFSR/BCA of D-/ba3 reflects the fact that its capital
position remains the weakest among Moody's rated Chinese
commercial banks, even though its profitability and quality of
reporting have both improved, and are catching up with those of
its peers. It also reflects Moody's expectation over the
potential for a deterioration in its asset quality and its short
track record since its listing on the Shanghai Stock Exchange in
2010.
The bank's non-performing loan ratio was low at 0.64% at end-June
2012. However, early signs of asset deterioration have appeared,
as reflected in a sharp rise in 1H 2012 in special mention loans,
and delinquent loans.
In 1H 2012, non-performing loans increased by 9.20% to RMB6.25
billion from RMB5.73 billion at end-2011. Special mention loans
and delinquent loans increased by 63% and 62% from end-2011. The
rise in non-performing loans was mainly in those loans for the
wholesale and retail, transportation, and manufacturing sectors.
In addition, the bank is adjusting its loan portfolio to focus
more on loans with higher returns to improve its profitability,
such as loans to small- and medium-sized enterprises, which are
more sensitive to economic cycles. Moody's expects slowing
economic growth to have a negative impact on loan quality in
these sectors, adding more downward pressure on the bank's credit
costs, earnings and ability to replenish capital.
CEB's long-term foreign currency deposit rating is Baa3 with a
stable outlook, and is three-notches above its ba3 BCA. The
bank's deposit rating incorporates Moody's assessment of a high
level of systemic support from the Chinese government, given
CEB's status as a bank that is owned and controlled by the
government.
The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.
CEB is headquartered in Beijing, China. As of June 30, 2012, it
reported total assets of RMB2.1 trillion (approximately USD330
billion).
================
H O N G K O N G
================
BEACON ENTERTAINMENT: Court to Hear Wind-Up Petition on Oct. 10
---------------------------------------------------------------
A petition to wind up the operations of Beacon Entertainment
Group Limited will be heard before the High Court of Hong Kong on
Oct. 10, 2012, at 9:30 a.m.
Chan Tsz Ho filed the petition against the company on Aug. 8,
2012.
CAPITAL NO. 1: Court to Hear Wind-Up Petition on Oct. 17
--------------------------------------------------------
A petition to wind up the operations of Capital No. 1 & Choice &
Best Choice Hong Kong Limited will be heard before the High Court
of Hong Kong on Oct. 17, 2012, at 9:30 a.m.
Wu Jianping filed the petition against the company on Aug. 13,
2012.
CELLCAST (ASIA): Creditors and Contributories to Meet on Sept. 21
-----------------------------------------------------------------
Creditors and contributories of Cellcast (Asia) Limited will hold
their first meetings on Sept. 21, 2012, at 3:00 p.m., and
3:30 p.m., respectively at the Official Receiver's Office, 10th
Floor, Queensway Government Offices, 66 Queensway, in Hong Kong.
At the meeting, Teresa S W Wong, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
CRAZY CREATIONS: Court to Hear Wind-Up Petition on Oct. 10
----------------------------------------------------------
A petition to wind up the operations of Crazy Creations Holdings
Limited will be heard before the High Court of Hong Kong on
Oct. 10, 2012, at 9:30 a.m.
Chan Tsz Ho filed the petition against the company on Aug. 8,
2012.
CULINARIA KALEIDOSCOPE: Court to Hear Wind-Up Petition on Oct. 3
----------------------------------------------------------------
A petition to wind up the operations of Culinaria Kaleidoscope
Limited will be heard before the High Court of Hong Kong on
Oct. 3, 2012, at 9:30 a.m.
Hong Kong Cyberport Management Company filed the petition against
the company on July 26, 2012.
The Petitioner's solicitors are:
Allen & Overy
9th Floor, Three Exchange Square
Central, Hong Kong
EURO SWISS: Tsz and Lai Appointed as Liquidators
------------------------------------------------
Frank Tsz Chun Yuen and Kennic Lai Hang Lui on May 25, 2012, were
appointed as liquidators of Euro Swiss International Limited.
The liquidators may be reached at:
Frank Tsz Chun Yuen
Kennic Lai Hang Lui
5/F, Ho Lee Commercial Building
38-44 D'Aguilar Street
Central, Hong Kong
FOREFRONT INT'L: Maund and Gaspar Step Down as Liquidators
----------------------------------------------------------
David Giles Maund and Fernando L. Gaspar stepped down as
liquidators of Forefront International Limited on Aug. 28, 2012.
HILHWA LIMITED: Court to Hear Wind-Up Petition on Oct. 10
---------------------------------------------------------
A petition to wind up the operations of Hilhwa Limited will be
heard before the High Court of Hong Kong on Oct. 10, 2012, at
9:30 a.m.
Timberwolf Manufacturing Inc filed the petition against the
company on Aug. 6, 2012.
HK SZYY: Court to Hear Wind-Up Petition on Oct. 17
--------------------------------------------------
A petition to wind up the operations of HK SZYY Pharmaceutical
Holdings Limited will be heard before the High Court of Hong Kong
on Oct. 17, 2012, at 9:30 a.m.
Ng Yuet Wa filed the petition against the company on Aug. 15,
2012.
HONG KEUNG: Court to Hear Wind-Up Petition on Oct. 10
-----------------------------------------------------
A petition to wind up the operations of Hong Keung Industrial
(Hong Kong) Limited will be heard before the High Court of Hong
Kong on Oct. 10, 2012, at 9:30 a.m.
Bank of China (Hong Kong) Limited filed the petition against the
company on Aug. 3, 2012.
The Petitioner's solicitors are:
Anthony Chiang & Partners
3903 Tower 2, Lippo Centre
89 Queensway
Central, Hong Kong
=========
I N D I A
=========
AAHELI HEALTHCARE: CRISIL Rates INR107.5MM Loan at 'CRISIL B-'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the term
loan facility of Aaheli Healthcare Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 107.5 CRISIL B-/Stable (Assigned)
The rating reflects AHPL's exposure to high project risk, weak
financial risk profile marked by low networth, high gearing and
weak debt protection metrics, and working-capital-intensive
operations. These rating weaknesses are partially offset by the
extensive experience of AHPL's management in the pharmaceutical
formulations industry.
Outlook: Stable
CRISIL believes that AHPL's business risk profile will be
supported by its experienced management; however, its financial
risk profile will be constrained by its high project
implementation risk. The outlook may be revised to 'Positive' in
case of stabilization of operations and better-than-expected
offtake, leading to revenue growth and profitability and
improvement in cash accruals and, consequently, the financial
risk profile. Conversely, the outlook may be revised to
'Negative' if AHPL faces delays in beginning commercial
operations or if its capacity utilization is lower-than-expected,
leading to weakening in its financial risk profile.
About Aaheli Healthcare
AHPL was incorporated in 2010 by Mr. Razak Pathan. The company
was established to manufacture generic pharmaceutical
formulations in Tasawade MIDC, Karad (Maharashtra). The company
has already acquired the land and construction process has
started. The said facility is expected to commence its operations
from January 2013, and will manufacture drugs in the form of
capsules, tablets, and injections.
ARVIND REMEDIES: CRISIL Upgrades Rating on INR1.78BB Loans
----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Arvind Remedies Ltd to 'CRISIL BB+/Stable' from 'CRISIL
BB/Stable' and has reaffirmed its rating on ARL's short-term bank
facilities at 'CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 1060 CRISIL BB+/Stable (Upgraded
from CRISIL BB/Stable)
Letter of credit & 450 CRISIL A4+ (Reaffirmed)
Bank Guarantee
Long-Term Loan 722 CRISIL BB+/Stable(Upgraded
from CRISIL BB/Stable)
The rating upgrade reflects significant scaling up of ARL's
operations coupled with a favorable change in the company's
revenue mix. The company has commenced undertaking increasing
exposure in ethical and contract manufacturing segments in lieu
of the highly competitive institutional sales segment during
2012-13 (refers to financial year, April 1 to March 31). CRISIL
expects the share of ethical sales and contract manufacturing to
improve to around 25 to 30 per cent in 2012-13 in relation to 20
per cent in 2010-11. This is likely to result in healthy increase
in operating profitability by around 300 to 500 basis points in
2012-13, in relation to previous year. CRISIL also expects the
change in revenue-mix to result in improved working capital
cycle, particularly receivable period, for ARL. Consequently,
ARL's gross current asset (GCA) level is likely to improve to
around 160 to 175 days of sales from 2012-13 in relation to 200
to 220 days of sales in the past three years. CRISIL believes the
improvement in operating profitability and working capital cycle
to remain sustainable over the medium term.
ARL plans to undertake a capital expenditure (capex) programme of
INR1.90 billion towards setting up an additional manufacturing
unit to manufacture beta-lactum antibiotics; this unit is likely
to be operational by June' 2013. The project cost is to be funded
by through term loans of INR1.40 billion and preferential
allotment of INR 0.50 billion. CRISIL believes that the proposed
unit will result in a healthy increase in ARL's scale of
operations, while continuing to favorably impact the company's
revenue- mix. Because of increase in cash accruals as a result of
increased scale of operations and improved profitability, ARL's
capital structure is likely to remain in the range of 1.6 to 1.8
times over the medium term despite its large, debt-funded capex
plans. ARL's liquidity remains adequate for the rating category,
marked by adequate accruals in relation to retiring debt
obligations.
The ratings continue to reflect ARL's established track record in
the pharmaceutical formulations segment and its moderate
financial risk profile, marked by comfortable debt protection
metrics and moderate capital structure. These rating strengths
are partially offset by the company's large working requirements
and its moderate scale of operations in an intensely competitive
industry.
Outlook: Stable
CRISIL believes that ARL will continue to benefit over the medium
term from its established track record in the formulations
segment. The outlook may be revised to 'Positive' if ARL achieves
earlier-than-expected stabilization of operations at its new
unit, thereby considerably increasing its revenues and
maintaining its improved profitability over the medium term.
Conversely, the outlook may be revised to 'Negative' if ARL's
financial risk profile deteriorates, caused most likely by delay
in stabilization of operations after capacity expansion, or
larger-than-expected, debt-funded capex further weakening its
capital structure.
About Arvind Remedies
ARL promoted by Mr. Arvind Shah is engaged in manufacture of
pharmaceutical formulations, primarily therapeutic drugs.
ARL reported, on provisional basis, a profit after tax (PAT) of
INR267 million on net sales of INR4.36 billion for 2011-12, as
against a PAT of INR169 million on net sales of INR3.62 billion
for 2010-11.
AS STEEL: Inadequate Info Cues Fitch to Migrate Ratings
-------------------------------------------------------
Fitch Ratings has migrated India-based A.S. Steel Traders Private
Limited's 'Fitch BB-(ind)' National Long-Term rating with Stable
Outlook to the non-monitored category. This rating will now
appear as 'Fitch BB-(ind)nm' on the agency's website. Fitch has
also migrated A.S. Steel's INR300m fund-based working capital
limits to National Long-Term 'Fitch BB-(ind)nm' from 'Fitch BB-
(ind)'.
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 A.S. Steel. 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 reinstated and will be
communicated through a rating action commentary.
NRP PROJECTS: Fitch Assigns 'BB+' National Long-Term Rating
-----------------------------------------------------------
Fitch Ratings has assigned India's NRP Projects Private Limited a
National Long-Term rating of 'Fitch BB+(ind)'. The Outlook is
Stable.
The ratings are constrained by NRP's stretched working capital
cycle (9MFY12 (financial year ending March): 167 days; FY11: 189
days) due to delays in milestone payments from its customers and
operational delays in its ongoing projects due to land-related
issues. This has resulted in a tight liquidity position for the
company, as illustrated by its near-full working capital
utilisation from September 2011 to February 2012. However,
likely revenue collections from its customers in H1FY13 may lower
down utilisation levels.
The ratings are also constrained by NRP's moderate scale of
operations (revenue: INR789m in FY11) and high revenue
concentration, with only two customers accounting for 90% of its
order book outstanding as on December 2011 (INR862m).
The ratings are, however, supported by NRP's expertise and track
record of over three decades in successfully executing complex
projects in the oil and gas infrastructure sector, including
cross country pipeline laying, horizontal directional drilling
and related civil works across various countries. The ratings
are also supported by NRP's reasonable order book (1.1x of FY11
revenue) providing revenue visibility for the near term and
positive industry outlook driven by expected large capex for
pipeline network in oil and gas companies. The ratings also
reflect NRP's strong EBITDA margin (FY11: 16%) and the financial
support from its founders through unsecured loans (FY11:
INR66.6m).
Negative rating action may result from execution delays in NRP's
projects and an extension of working capital cycle or weakening
of EBITDA margins leading to debt/EBITDA exceeding 4x or EBTIDA
interest cover falling below 1.5x on a sustained basis.
Conversely, improved working capital cycle or increased EBITDA
margins leading to debt/EBITDA of below 2.5x and interest cover
above 2.0x may result in positive rating action. Additionally,
improved liquidity position as reflected in lower working capital
utilization and better diversification of customers would be
required for a ratings upgrade.
NRP is a Chennai-based engineering construction company,
providing services for integrated design, detailed engineering,
procurement, and construction and project management for oil and
gas industry. In FY11, EBITDA margin was 16%, debt/EBITDA of
3.7x, and EBITDA interest cover was 1.8x. According to NRP's
provisional financials for FY12, revenue was INR797m, EBITDA
margin was 19% and interest cover was 2.1x.
Rating actions on NRP Projects:
-- National Long-Term rating assigned at 'Fitch BB+(ind)';
Outlook Stable
-- INR350m fund based limits: assigned at 'Fitch BB+
(ind)'/'Fitch A4+(ind)'
-- INR500m non-fund-based working capital limits: assigned at
'Fitch A4+(ind)'
P K THAKUR: CRISIL Assigns 'D' Ratings to INR89.7MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' rating to the bank
facilities of P K Thakur & Co. P. Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long-Term Loan 4.7 CRISIL D (Assigned)
Letter of Credit 15 CRISIL D (Assigned)
Bank Guarantee 40 CRISIL D (Assigned)
Cash Credit 30 CRISIL D (Assigned)
The rating reflects instances of delay by PKTL in servicing its
debt; the delays have been caused by the company's weak liquidity
resulting from large working capital requirements.
PKTL also has modest scale of operations, average financial risk
profile, marked by small net worth, and constrained financial
flexibility because of large working capital requirements.
However, the company benefits from the extensive industry
experience of its promoters in the construction business.
PKTL, incorporated in 1989(erstwhile partnership firm, P.K.
Thakur, established in 1976) is located in Burnpur district,
Asansol, West Bengal. The company is engaged in executing civil,
electrical and mechanical projects, including water supply,
sewerage treatment, and housing complex, mainly for IISCO Steel
Plant (ISP), Burnpur, West Bengal. The company is managed by Mr.
Pradip Thakur.
PKTL reported a provisional profit after tax (PAT) of INR6.7
million on provisional net sales of INR121.4 million for 2011-12
(refers to financial year, April 1 to March 31) against a PAT of
INR7.9 million on net sales of INR146.7 million for 2010-11.
RAMA SACKS: CRISIL Assigns 'B' Rating to INR75MM Loans
------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Rama Sacks N Bags Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 32.5 CRISIL B/Stable (Assigned)
Term Loan 42.5 CRISIL B/Stable (Assigned)
The rating reflects RSBPL's limited track record, exposure to
intense competition in the packaging industry, and vulnerability
to volatility in raw material prices. The rating also reflects
RSBPL's constrained financial risk profile, because of the
company's on-going capital expenditure (capex) programme. These
rating weaknesses are partially offset by the benefits that RSBPL
derives from its promoters' extensive experience in the woven
sacks business.
Outlook: Stable
CRISIL believes that RSBPL will continue to benefit over the
medium term from its promoters' extensive experience in the woven
sacks business. The outlook may be revised to 'Positive' if the
company achieves higher-than-expected increase in its scale of
operations and report improvement in its operating margin.
Conversely, the outlook may be revised to 'Negative' if RSBPL's
financial risk profile deteriorates because of increased working
capital borrowings, or if the company undertakes any large, debt-
funded capital expenditure programme or generates lower-than-
expected cash accruals.
About Rama Sacks
RSBPL was set up in October 1987 as Friends Spinners Pvt Ltd. Its
name was changed to RSBPL in August 2009. The company is managed
by Mr. Radheshyam Jindal and his family. RSBPL currently trades
in high density polyethylene (HDPE) and polypropylene (PP) bags
on a small scale. RSBPL is in the process of setting up a
manufacturing unit at its existing facility in Panipat (Haryana),
in order to manufacture HDPE/PP woven fabric.
RSBPL reported a profit after tax (PAT) of INR15 million on net
sales of INR0.58 million for 2011-12 (refers to financial year,
April 1 to March 31), against a PAT of INR0.07million on net
sales of INR4.1 million for 2010-11.
REDDY AGRO: CRISIL Assigns 'B+' Rating to INR81.9MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Reddy Agro Products Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable (Assigned)
Long-Term Loan 1.9 CRISIL B+/Stable (Assigned)
The rating reflects RAPPL's below-average financial risk profile
marked by high gearing and exposure to risks related to
volatility in raw material prices and to high dependence on
monsoon. The rating also factors in RAPPL's working capital
Intensive operations. These rating weaknesses are partially
offset by the benefits that RAPPL derives from its promoters'
extensive experience in the rice processing industry.
Outlook: Stable
CRISIL believes that RAPPL will continue to benefit from its
promoters' extensive experience in the rice processing industry.
The outlook may be revised to 'Positive' in case RAPPL's revenues
and profitability increase more than expected or if the company
benefits from equity infusion by its promoter. Conversely, the
outlook may be revised to 'Negative' if RAPPL's capacity is
utilised at lower-than-expected levels, thereby possibly
deteriorating its operating margin, or in case the company
undertakes any large, debt-funded capital expenditure programme.
About Reddy Agro
RAPPL was set up as a private limited company on October 12,
2009; it commenced commercial operations in 2010-11 (refers to
financial year, April 1 to March 31). The company processes rice
and rice products. RAPPL is promoted by Mr. S K Eswara Reddy and
his brother, Mr. S Venkata Reddy.
RUDRA TECHNO: Inadequate Info Cues Fitch to Migrate Ratings
-----------------------------------------------------------
Fitch Ratings has migrated India-based Rudra Techno Feeds' 'Fitch
B(ind)' National Long-Term rating with Stable Outlook to the non-
monitored category. This rating will now appear as 'Fitch
B(ind)nm' on the agency's Web site.
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 Rudra. 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 reinstated and will be communicated
through a rating action commentary.
Fitch has also migrated Rudra's bank loan ratings to the non-
monitored category as follows:
-- INR35m fund-based working capital limits: migrated to
National Long-Term 'Fitch B(ind)nm' from 'Fitch B(ind)' and
National Short-Term 'Fitch A4(ind)nm' from 'Fitch A4(ind)'
-- INR100m term loans: migrated to National Long-Term 'Fitch
B(ind)nm' from 'Fitch B(ind)'
SABER PAPER: Delay in Loan Payment Cues CRISIL Junk Ratings
-----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Saber
Paper Ltd to 'CRISIL D/CRIISL D' from 'CRISIL BB/Stable/CRISIL
A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 461.3 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Term loan 1178.7 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Letter of Credit & 420.0 CRISIL D (Downgraded from
Bank Guarantee 'CRISIL A4+')
The rating downgrade reflects instances of delay by SPL in
servicing its debt. The delays are due to its weak liquidity. The
company's liquidity is weak because of its large capital
expenditure programme and large working capital requirements,
coupled with low capacity utilisation at its production
facilities, resulting in small cash accruals. CRISIL believes
that SPL's liquidity will remain weak, over the medium term.
SPL has large working capital requirements and exposure to risks
related to implementation and stabilisation of the ongoing
project for setting up the unit to manufacture kraft paper. The
company, however, does benefit from its moderate business risk
profile.
SPL was established in October 2007 by Mr. Dinesh Soin and
family. The company has set up a 225 tonnes per day-(tpd) semi-
integrated writing & printing paper plant at Haroli in Una
(Himachal Pradesh). SPL manufactures cream wove, maplitho, and
copier papers, with maplitho being the largest contributor to
sales.
SPL reported a profit after tax (PAT) of INR147 million on net
sales of INR2.55 billion for 2010-11, against a net loss of
INR9.2 million on net sales of INR374.8 million for 2009-10.
SRINIVASA CONSTRUCTION: CRISIL Ups Rating on INR300MM Loan to 'B'
-----------------------------------------------------------------
CRISIL has upgraded its ratings on long term bank facilities of
Srinivasa Construction Corporation Private Ltd to 'CRISIL
B+/Stable' from 'CRISIL B/Stable' while reaffirming the short
term ratings at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 300.0 CRISIL B+/Stable (Upgraded from
CRISIL B/Stable)
Bank Guarantee 200.0 CRISIL A4 (Reaffirmed)
The rating upgrade reflects improvement in SCCPL's business risk
profile, driven by substantial and sustained increase in the
company's scale of operations, while it maintained its healthy
profitability margins. The upgrade also factors in a substantial
increase in SCCPL's net worth and CRISIL's belief that SCCPL will
maintain its average financial risk profile, supported by the
absence of any large, debt-funded, capital expenditure (capex),
over the medium term.
SCCPL's revenues increased at a compound annual growth rate of
around 40 per cent over the last two years ended 2011-12 (refers
to financial year, April 1 to March 31). The revenues of the
company are expected to continue to register a healthy growth
over the medium term on the back of its sizeable order portfolio
of INR11.0 billion (4.8 times it revenues in 2011-12). Also, the
company's operating profit margin, which increased sequentially
to 19.3 per cent in 2011-12 from 11.1 per cent in 2009-10, is
expected to remain stable at around 13 per cent to 14 per cent
over the medium term.
SCCPL's healthy performance over the past two years has resulted
in an increase in SCCPL's net worth to around INR248 million as
on March 31, 2012 from INR53 million as on March 31, 2010. As a
result of the increase in net worth, its gearing reduced
substantially to 3.0 times as on March 31, 2012 from 9.9 times as
on March 31, 2010. With the absence of any large, debt-funded,
capex plan, SCCPL's gearing is expected to be moderate at around
2.0 times over the medium term.
The ratings reflect SCCPL's modest scale of operations, its large
working capital requirements, and its average financial risk
profile marked by its modest net-worth, high gearing and moderate
debt protection metrics. These rating weaknesses are partially
offset by the extensive experience of SCCPL's promoters in
executing irrigation projects and its healthy order book
position.
Outlook: Stable
CRISIL believes that SCCPL will continue benefit over the medium
term from its promoters' extensive industry experience and its
sizeable order book position. The outlook may be revised to
'Positive' if there is a substantial and sustained improvement in
the company's revenues and profitability margins from the current
levels or there is an improvement in its working capital
management. Conversely, the outlook may be revised to 'Negative'
if there is a steep decline in the company's profitability
margins from the current levels or there is a significant
deterioration in its capital structure on account of larger-than-
expected working capital requirements.
About Srinivasa Construction
SCCPL, earlier known as Srinivasa Construction Company was
established in 1994 as a partnership firm by Mr. B V Rama Rao and
his family members and was reconstituted as a private limited
company in May 2012. SCCPL executes irrigation projects mainly
for government and semi-government organisations. The company's
operations are predominantly in Maharashtra, though it also
undertakes projects in Andhra Pradesh and Madhya Pradesh.
SCCPL reported, on provisional basis, a profit after tax (PAT) of
INR169.7 million on net sales of INR2.28 billion for 2011-12. The
company reported a PAT of INR68.2 million on net sales of INR1.40
billion for 2010-11.
SVARN INFRATEL: Delay in Loan Payment Cues CRISIL Junk Ratings
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Svarn
Infratel Pvt Ltd (SIPL; part of the Svarn group) to 'CRISIL
D/CRISIL D' from 'CRISIL BB/Negative/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 15 CRISIL D (Downgraded from
'CRISIL A4+')
Cash Credit 57 CRISIL D (Downgraded from
'CRISIL BB/Negative')
Letter of Credit 30 CRISIL D (Downgraded from
'CRISIL A4+')
Rupee Term Loan 112.5 CRISIL D (Downgraded from
'CRISIL BB/Negative')
The rating downgrade reflects the instances of delay by SIPL in
servicing its term loan; the delays have been caused by the
group's weak liquidity. The Svarn group operates mainly in the
passive telecom infrastructure and equipment industry along with
operating a fabric processing house. It has weak liquidity mainly
because of its lower-than-expected accruals on account of its
suppressed revenues. Limited network expansion by
telecommunication (telecom) operators because of the slowdown and
on-going consolidation in the telecom sector has resulted in
decline in demand for telecom towers and other passive telecom
infrastructure. As a result, the Svarn group's revenues and
profitability have deteriorated, thereby adversely affecting the
business risk profile and debt servicing ability of the group.
Furthermore, the Svarn group has weak liquidity because of
incremental working capital requirements on account of delayed
payments by its customers.
The Svarn group also has a weak financial risk profile, marked by
weak debt protection measures, and a small scale of operations.
Moreover, its margins are susceptible to intense industry
competition. However, the Svarn group benefits from its
promoters' extensive experience in the telecom and textiles
business.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SIPL, Svarn Telecom Ltd (STL), Svarn
Telecom (ST), and Svarn Tex Prints Pvt Ltd (STPPL). This is
because the four entities, collectively referred to as the Svarn
group, share the same management team, and have intra-group
operational linkages and fungible cash flows. The group's
procurement and marketing functions are carried out at its
central corporate office. Three of the group entities are in the
same line of business and use a common brand name. Furthermore,
there are fungible cash flows among the group companies, where
surplus funds available with one group entity could be utilised
for working capital and capital expenditure requirements of the
other group entities.
About the Group
The Svarn group has been established by the Gupta and Singhal
family. SIPL started its operations in July 2010, and is engaged
in manufacturing of power cables used in telecom equipments and
other power equipments. The Svarn group manufactures passive
telecom infrastructure and equipment, and operates a fabric
processing house. The group manufactures passive telecom
equipment through ST and STL, and power cables through SIPL; it
operates a fabric processing house under STPPL. The Svarn group
supplies its products to telecom entities such as Ericsson India
Pvt Ltd, Nokia India Private Limited, Siemens Ltd (rated 'CRISIL
AAA/Stable/CRISIL A1+'), Bharti Airtel Ltd (CRISIL
AAA/Negative/CRISIL A1+), and Idea Cellular Ltd (CRISIL A1+).
SVARN TELECOM: CRISIL Cuts Rating on INR137.5MM Loans to 'B'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Svarn
Telecom Ltd (part of the Svarn group) to 'CRISIL B/Stable/CRISIL
A4' from 'CRISIL BB/Negative/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 80 CRISIL B/Stable (Downgraded
from 'CRISIL BB/Negative')
Rupee Term Loan 57.5 CRISIL B/Stable (Downgraded
from 'CRISIL BB/Negative')
The rating downgrade reflects CRISIL's belief that the Svarn
group's financial risk profile, particularly its liquidity and
debt protection metrics, will be weaker than previously expected
over the medium term. The Svarn group operates mainly in the
passive telecom infrastructure and equipment industry along with
operating a fabric processing house. It has weak liquidity mainly
because of its lower-than-expected accruals on account of its
suppressed revenues. Limited network expansion by
telecommunication (telecom) operators because of the slowdown and
on-going consolidation in the telecom sector has resulted in
decline in demand for telecom towers and other passive telecom
infrastructure. As a result, the Svarn group's revenues and
profitability have deteriorated, thereby adversely affecting the
business risk profile and debt servicing ability of the group.
Furthermore, the Svarn group has weak liquidity because of
incremental working capital requirements on account of delayed
payments by its customers.
The Svarn group also has a weak financial risk profile, marked by
weak debt protection measures, and a small scale of operations.
Moreover, its margins are susceptible to intense industry
competition. However, the Svarn group benefits from its
promoters' extensive experience in the telecom and textiles
business.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of STL, Svarn Telecom, Svarn Tex Prints
Pvt Ltd, and Svarn Infratel Ltd. This is because the four
entities, collectively referred to as the Svarn group, share the
same management team, and have intra-group operational linkages
and fungible cash flows. The group's procurement and marketing
functions are carried out at its central corporate office. Three
of the group entities are in the same line of business and use a
common brand name. Furthermore, there are fungible cash flows
among the group companies, where surplus funds available with one
group entity could be utilised for working capital and capital
expenditure requirements of the other group entities.
Outlook: Stable
CRISIL believes that the Svarn group's business risk profile will
be constrained over the near term because of suppressed revenue
growth. The outlook may be revised to 'Positive' if the sales of
the group's newly launched products stabilize, and if its
profitability increases improving the liquidity, despite ongoing
consolidation and slowdown in the telecom sector. Conversely, the
outlook could be revised to 'Negative' if the group undertakes a
large, debt-funded capex programme or if its profitability and
revenues decline substantially, impacting its debt-servicing
ability.
About the Group
The Svarn group has been established by the Gupta and Singhal
family. STL, part of the Svarn group, was set up in 2008 in
Faridabad (Haryana). It manufactures passive telecom
infrastructure, such as base transceiver station installation
kits, racks, and shelters, for telecom cell sites The Svarn group
manufactures passive telecom infrastructure and equipment, and
operates a fabric processing house. The group manufactures
passive telecom equipment through ST and STL, and power cables
through SIL; it operates a fabric processing house under STPPL.
The Svarn group supplies its products to telecom entities such as
Ericsson India Pvt Ltd, Nokia India Private Limited, Siemens Ltd
(rated 'CRISIL AAA/Stable/CRISIL A1+'), Bharti Airtel Ltd (CRISIL
AAA/Negative/CRISIL A1+), and Idea Cellular Ltd (CRISIL A1+).
SVARN TEX: Delay in Loan Payment Cues CRISIL Junk Ratings
---------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Svarn
Tex Prints Pvt Ltd (STPPL; part of the Svarn group) to 'CRISIL
D/CRISIL D' from 'CRISIL BB/Negative/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 15 CRISIL D (Downgraded from
CRISIL A4+)
Cash Credit 45 CRISIL D (Downgraded from
CRISIL BB/Negative)
Rupee Term Loan 144.1 CRISIL D (Downgraded from
CRISIL BB/Negative)
The rating downgrade reflects the instances of delay by STTPL in
servicing its term loan; the delays have been caused by the
group's weak liquidity. The Svarn group operates mainly in the
passive telecom infrastructure and equipment industry along with
operating a fabric processing house. It has weak liquidity mainly
because of its lower-than-expected accruals on account of its
suppressed revenues. Limited network expansion by
telecommunication (telecom) operators because of the slowdown and
on-going consolidation in the telecom sector has resulted in
decline in demand for telecom towers and other passive telecom
infrastructure. As a result, the Svarn group's revenues and
profitability have deteriorated, thereby adversely affecting the
business risk profile and debt servicing ability of the group.
Furthermore, the Svarn group has weak liquidity because of
incremental working capital requirements on account of delayed
payments by its customers.
The Svarn group also has a weak financial risk profile, marked by
weak debt protection measures, and a small scale of operations.
Moreover, its margins are susceptible to intense industry
competition. However, the Svarn group benefits from its
promoters' extensive experience in the telecom and textiles
business.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of STPPL, Svarn Telecom Ltd, Svarn
Telecom, and Svarn Infratel Ltd. This is because the four
entities, collectively referred to as the Svarn group, share the
same management team, and have intra-group operational linkages
and fungible cash flows. The group's procurement and marketing
functions are carried out at its central corporate office. Three
of the group entities are in the same line of business and use a
common brand name. Furthermore, there are fungible cash flows
among the group companies, where surplus funds available with one
group entity could be utilized for working capital and capital
expenditure requirements of the other group entities.
About the Group
The Svarn group has been established by the Gupta and Singhal
family. STPPL, part of the Svarn group, was set up in 2008 in
Faridabad (Haryana). It operates a processing house for fabric
dyeing, printing, and processing. The Svarn group manufactures
passive telecom infrastructure and equipment, and operates a
fabric processing house. The group manufactures passive telecom
equipment through ST and STL, and power cables through SIL; it
operates a fabric processing house under STPPL. The Svarn group
supplies its products to telecom entities such as Ericsson India
Pvt Ltd, Nokia India Private Limited, Siemens Ltd (rated 'CRISIL
AAA/Stable/CRISIL A1+'), Bharti Airtel Ltd (CRISIL
AAA/Negative/CRISIL A1+), and Idea Cellular Ltd (CRISIL A1+).
VIKASH METAL: aFitch Withdraws 'C(ind)' National Longterm Rating
----------------------------------------------------------------
Fitch Ratings has withdrawn India-based Vikash Metal & Power
Ltd's National Long-Term 'Fitch C(ind)nm' rating.
The ratings have been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of VMPL.
Fitch migrated VMPL to the non-monitored category on 10 February
2012.
Fitch has also withdrawn VMPL's bank loan ratings as follows:
-- INR651.84m long-term debt programme: National Long-Term
'Fitch C(ind)nm'; rating withdrawn
-- INR657.5m fund-based limits: National Long-Term 'Fitch
C(ind)nm'; rating withdrawn
-- INR1,050m non-fund-based limits: National Short-Term 'Fitch
D(ind)nm'; rating withdrawn
=================
I N D O N E S I A
=================
GOLDEN AGRI-RESOURCES: Moody's Lifts CFR to Ba2; Outlook Stable
---------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family
rating on Golden Agri-Resources Ltd. to Ba2 from Ba3.
The outlook for the rating remains stable.
Ratings Rationale
"The upgrade is supported by the continued strength of Golden
Agri's operations and resultant credit profile, and its
resilience through the global financial crisis. While commodity
price volatility is always a concern, we draw comfort from palm
oil's competitiveness as a vegetable oil and the growing global
demand for vegetable oils and their derived consumer products,
chemicals and fuels," says Alan Greene, a Moody's Vice President
and Senior Credit Officer.
Palm oil plantations are confined to tropical areas and Indonesia
and Malaysia produce approximately 90% of the world's supply of
crude palm oil (CPO). As the largest CPO producer in Indonesia
and the third largest in the world, Golden Agri is very well
placed to benefit from the industry's fundamentals. In addition
to its existing planted area of 457,000 ha as at 1H 2012 and a
favorable plantations maturity profile, the company also boasts a
land bank of approximately 100,000 ha, which is sufficient for 3
to 4 years of organic expansion.
Golden Agri has consistently maintained credit metrics that are
stronger than similarly rated companies. Debt/EBITDA and EBITDA
interest coverage has remained at 1.0-2.0x and 8.0x-16.0x,
respectively, since FY2007. This is despite its the low profits
from its oilseed crushing and edible oil operations in China. At
the same time, its capital structure has been overly reliant on
short-term, secured debt.
The proposed five year convertible bond (with a three year
put/call) launched yesterday together with the IDR3 trillion bond
programme announced by its subsidiary, PT SMART Tbk, in June,
should put the debt maturity profile on to a sounder footing.
Coupled with the recent exercise of equity warrants, which raised
SGD377 million, the company has significant funds on hand.
Moody's expects the funds to be spent on enlarging the group's
downstream operations and improving its logistics capability to
capture more contribution from along the CPO business chain. At
the same time it will support on-going planting programmes,
including in Africa, where it holds an interest in a 220,000ha
plantation development in Liberia.
Within the rating, the weighting attributable to Golden Agri's
association with the default of Asia Pulp & Paper group ("APP"),
an affiliate held by Golden Agri's main shareholder, and by its
own debt rescheduling, has diminished. At the same time, Golden
Agri has worked at improving its environmental credentials with
respect to rainforest conservation and palm oil sustainability.
However, overall Indonesian institutional risk remains. Golden
Agri is part of the Sinar Mas group, the name of the Widjaja
family's business empire.
"Moody's will continue to monitor Golden Agri's CSR performance
including transactions with related parties. The corporate
governance concerns also translate into more stringent
expectations towards the company's credit profile," adds Greene,
also Moody's Lead Analyst for Golden Agri.
The stable outlook is based on Moody's expectation that Golden
Agri maintains its strong market position in CPO through
continued effective plantation management, and that CPO prices
remain supportive and within the range of their 5-year average of
around $850. It also anticipates successful implementation of its
accelerated growth plans and no re-emergence of CSR issues. Some
dilution of margin and an increase in working capital levels is
expected from the increased investment into processing and
logistics facilities.
The rating may experience upward pressure if management can
maintain the quality of its corporate governance and keep its
strong financial and liquidity profile through its next phase of
expansion. Further reduction of its reliance on short-term and
secured debt financing would also be credit positive. Other
positive rating triggers would include: (1) an overall EBITDA
margin of 18-20%, (2) EBITDA/gross interest holds or exceeds the
7x - 10x range, (3) RCF/Net Debt holds or exceeds 20% and (4)
Adjusted Debt/EBITDA remains below 2.0-2.5x, all on a sustained
basis.
The rating may experience downward pressure if (1) evidence
emerges of cash leaking from Golden Agri to fund affiliated
companies - for example, through inter-company loans, aggressive
cash dividends, or investments in affiliates; (2) unexpected
costs associated with the expansion of plantations and processing
facilities arise; or (3) CPO prices decline consistently beyond
Moody's expectations and 4) access to trade finance is impaired.
Financial metrics indicative of significant deterioration would
include 1) EBITDA margins fall below 13-15%, 2) EBITDA/Interest
falls below 4.0-4.5x or 3) RCF/Net Debt declines below 13% to 15%
and 4) Adjusted Debt/EBITDA surpasses 4.0-4.5x.
Golden Agri's ratings were assigned by evaluating factors that
Moody's considers relevant to the credit profile of the issuer,
such as the company's (i) business risk and competitive position
compared with others within the industry; (ii) capital structure
and financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside Golden Agri's core industry
and believes Golden Agri's ratings are comparable to those of
other issuers with similar credit risk.
Golden Agri-Resources Ltd, registered in Mauritius, is the
largest listed oil palm plantation company in Indonesia. Listed
on the Singapore Stock Exchange in 1999, it operates in Indonesia
and China and is 49.95% owned by the Widjaja family.
=========
J A P A N
=========
ELPIDA MEMORY: Bondholders Want to Keep Right for Involuntary
-------------------------------------------------------------
Certain members of the steering committee of the Ad Hoc Group of
Bondholders of Elpida Memory, Inc., ask the U.S. Bankruptcy Court
for the District of Delaware to modify the order dated April 24,
2012, recognizing foreign representatives and foreign main
proceeding to:
(i) condition the relief granted in the recognition order by
requiring certain protections with respect to all property
of Elpida's estate within the territorial jurisdiction of
the United States; and
(ii) clarify that the automatic stay imposed by the recognition
order does not prevent the bondholders from commencing, if
necessary and appropriate, an involuntary bankruptcy case
against Elpida.
On April 24, 2012, the Court entered the recognition order, which
recognized Elpida's ongoing Japanese restructuring proceeding as
a foreign main proceeding under Chapter 15. That order also
extended the protections of Sections 361 and 362 of the
Bankruptcy Code to property of Elpida within the territorial
jurisdiction of the United States.
The steering committee relates that after the entry of the
recognition order, it is concerned whether Elpida is attempting
to maximize the value of its estate and recoveries to its
prepetition creditors (who the bondholders understand hold in
excess of $5.4 billion in allowed claims against Elpida).
Specifically, on July 2, 2012, Elpida entered into a sponsorship
agreement pursuant to which it will sell its stock to Micron
Technology, Inc. That stock sale will be made free and clear of
all of Elpida's prepetition liabilities, and prepetition
creditors will receive cash and new paper issued by the
reorganized entity, which the bondholders anticipate will be
worth less than $1.8 billion.
The steering committee notes that the Debtor made no disclosures
regarding, among other things, the fair market value of Elpida
and its subsidiaries, the terms of the proposed sale, or the
range of post-sale recoveries to Elpida creditors.
The steering committee says that the unwillingness of Elpida, its
court-appointed trustees and Micron to discuss material aspects
of their proposed arrangement creates significant concern for any
Elpida creditor. These concerns include, among other things:
-- Elpida's two court-appointed trustees, one of whom will
apparently be employed by Micron post-emergence, precluded
themselves by the terms of the sponsorship agreement from
discussing any alternate transactions or disclosing
material information without Micron's consent.
-- No other creditor representative with any meaningful power
and with fiduciary duties owed to creditors participated
in, or signed off on, Elpida's sale decision.
-- No transparent or stalking-horse bid process has taken, or
is scheduled to take, place, and the trustees have
repeatedly rebuffed the bondholders' attempts to discuss
creditor-led initiatives to provide substantially more
value to Elpida's creditors and estate.
A copy of the motion is available for free at:
http://bankrupt.com/misc/ELPIDAMEMORY_modify_foreign_proceeding.pdf
About Elpida Memory
Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is
a Japan-based company principally engaged in the development,
design, manufacture and sale of semiconductor products, with a
focus on dynamic random access memory (DRAM) silicon chips. The
main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM,
Mobile RAM and XDR DRAM, among others. The Company distributes
its products to both domestic and overseas markets, including the
United States, Europe, Singapore, Taiwan, Hong Kong and others.
The company has eight subsidiaries and two associated companies.
After semiconductor prices plunged, Japan's largest maker of DRAM
chips filed for bankruptcy in February with liabilities of 448
billion yen ($5.6 billion) after losing money for five quarters.
Elpida Memory and its subsidiary, Akita Elpida Memory, Inc.,
filed for corporate reorganization proceedings in Tokyo District
Court on Feb. 27, 2012. The Tokyo District Court immediately
rendered a temporary restraining order to restrain creditors from
demanding repayment of debt or exercising their rights with
respect to the company's assets absent prior court order.
Atsushi Toki, Attorney-at-Law, has been appointed by the Tokyo
Court as Supervisor and Examiner in the case.
Elpida Memory Inc. sought the U.S. bankruptcy court's recognition
of its reorganization proceedings currently pending in Tokyo
District Court, Eight Civil Division. Yuko Sakamoto, as foreign
representative, filed a Chapter 15 petition (Bankr. D. Del. Case
No. 12-10947) for Elpida on March 19, 2012.
The Court entered an order recognizing foreign representatives
and foreign main proceeding on April 24, 2012.
===============
M O N G O L I A
===============
TRADE AND DEVELOPMENT: Moody's Rates Sr. Unsecured Notes 'B1'
-------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to Trade and
Development Bank of Mongolia (TDB)'s proposed fixed rate US
dollar senior unsecured notes, which will be drawn from its
US$700 million Euro Medium-Term Note Programme.
Ratings Rationale
The rating assigned to the notes is subject to the receipt of
final documentation, the terms and conditions of which are not
expected to change in any material way from the draft documents
reviewed by Moody's.
"The rating is underpinned by TDB's good franchise value as one
of the largest banks with expertise in corporate banking in
Mongolia where it held 22% and 23% of total deposits and loans
respectively at end-June 2012, improved asset quality, and good
operating efficiency.," says Hyun Hee Park, a Moody's Analyst.
"The rating is supported by the bank's Non-performing Loan (NPL)
ratio -- defined as the ratio of loans sub-standard and below --
of 1.3% as of June 2012, which was substantially recovered from
4.1% as of December 2010. However, the rating also considers the
bank's concentrated loan portfolio, given that it is one of the
biggest lenders to the country's industrial sectors," She adds.
As a result of the high loan growth of 142% in 2011, TDB's Tier 1
and total capital adequacy ratios (CAR) declined to 8.2% and
12.7% at end-2011 from 10.2% and 16.3% at end-2010, respectively.
Despite significant loan growth during 1H 2012, its Tier 1 and
total CAR improved to 9.1% and 14.5%, respectively, as of June
2012 helped by a capital injection from Goldman Sachs in February
2012. Moody's expects that the bank will continue to need to
raise additional Tier 1 core capital over the next few years
given the rapid growth of the Mongolian economy and the
accompanying expansion of credit.
"The rating also takes into account the strong geographical
concentration of the bank's operations in Mongolia. Given the
resource-based nature of the economy and the rapid growth of the
mining sector, there is the risk of boom-bust cycles, resulting
in a volatile operating environment. In this context, TDB's high
volume of unseasoned loans creates some vulnerability to any
economic dislocations," Park says.
Given the bank's traditional portfolio in corporate lending, loan
concentration risk is relatively high. Moody's notes that TDB's
exposure to its top 20 borrowers was over 888% of pre-provision
profit, and over 349% of Tier 1 capital in 2011.
Moody's considers that upside pressure on the rating is unlikely
in the foreseeable future given the recent downgrade in May 2012
following Moody's updated assessment on the linkage between the
credit profiles of sovereigns and other institutions domiciled
within the sovereign, which is discussed in the rating
implementation guidance "How Sovereign Credit Quality May Affect
Other Ratings" published on 13 February 2012, and further
detailed in the special comment "Banks and Sovereigns: Risk
Correlations Constrain Standalone Bank Credit Assessments"
published on 30 April 2012. TDB's ratings were lowered to B1 from
Ba3 to be positioned in line with the B1 rating of Mongolian
government, to capture the appropriate credit risks of the bank
given relatively low level of cross-border diversification in its
operations.
However, an upgrade of the sovereign rating could be positive for
the banks ratings, especially if it can maintain its currently
healthy asset quality, capital, and profitability metrics
throughout the economic cycle.
Additional factors that could exert negative pressure on the
rating include (1) asset quality deteriorating significantly,
possibly due to aggressive expansion, (2) NPLs surpassing 4.5%,
(3) the new NPL formation rate of gross loans exceeding 8%, (4)
its regulatory Tier 1 ratio falling below 9%, (5) profitability
deteriorating significantly, with net income less than 1.4% of
average RWA, or, (6) signs of strains in the bank's liquidity
position, a decline in the Mongolian economy, or a system-wide
confidence crisis, which could threaten the bank's franchise.
The bank's other ratings are:
- Bank financial strength of E+; local currency bank deposits
rating of B1; foreign currency bank deposits rating of B2;
issuer rating of B1; foreign currency long-term senior
unsecured debt / subordinate debt of B1/B2; and foreign
currency long-term senior unsecured MTN/subordinate MTN of
(P)B1/(P)B2
- Local currency/ foreign currency short-term deposit rating of
NP; local currency/ foreign currency short-term issuer rating
of NP; and other short-term rating of (P)NP.
The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.
Trade and Development Bank of Mongolia LLC is based in
Ulaanbaatar, Mongolia. It is one of the largest Mongolia banks
with consolidated assets of MNT2.4 trillion (US$1.7 billion) as
of June 30, 2012.
====================
N E W Z E A L A N D
====================
CAIRNS GROUP: Units in Receivership, To Sell Businesses
--------------------------------------------------------
Jono Galuszka at Manawatu Standard reports that receivers are set
to sell a major Palmerston North rubbish and recycling business
in an effort to pay its debts.
Cairns Transport and Manawatu Transfer Station, both part of
Cairns Group, were placed into receivership at the end of June.
Both companies are directed by Ash Cairns.
At the time, receivers PricewaterhouseCoopers said the company
owed about $4 million, according to Manawatu Standard.
The report relates that the first receivers' report, released
Sept.06, shows the companies collectively owe ANZ Bank $3.26
million.
However, that figure could increase once fees and interest are
factored in, the report notes.
The report discloses that employees are owed about $163,000 --
including $76,000 in holiday pay -- but it is not known how much
is owed to unsecured creditors or Inland Revenue.
The report says assets of the company will be sold to pay the
debts.
However, "other entities associated with the company's director"
could also be sold, the report relays.
The report discloses that John Fisk from PricewaterhouseCoopers
said the other entities related to businesses in the Cairns Group
that were not in receivership.
Mr. Cairns had given his permission for that to take place, Mr.
Fisk said, the report notes.
The report adds that the businesses and assets are being
advertised nationwide for sale.
RYANNA FARMING: Placed Into Voluntary Liquidation
-------------------------------------------------
The Southland Times reports that Ryanna Farming Company Ltd has
been put into voluntary liquidation by its shareholders.
Insolvency Management principal Iain Nellies said they had been
appointed liquidators of the company.
"It's early days. We are just gathering information," the report
quotes Mr. Nellies as saying.
According to the report, the company had no assets because the
farm had been sold but after the sale there were issues with a
bridge and a milking shed on the farm but he was waiting on the
legal files, he said.
The Southland Times relates that Mr. Nellies said the purchaser
of the farm was the only external creditor but the shareholders
were also creditors.
Ryanna Farming Company Ltd owned a Southland dairy farm.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Sept. 3 to Sept. 7, 2012
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
COM BK AUSTRALIA 1.5 04/19/22 AUD 70.54
EXPORT FIN & INS 0.5 06/15/20 NZD 74.44
MIDWEST VANADIUM 11.5 02/15/18 USD 63.18
MIDWEST VANADIUM 11.5 02/15/18 USD 59.50
MIRABELA NICKEL 8.75 04/15/18 USD 72.88
MIRABELA NICKEL 8.75 04/15/18 USD 76.00
NEW S WALES TREA 0.5 09/14/22 AUD 69.02
NEW S WALES TREA 0.5 10/07/22 AUD 68.82
NEW S WALES TREA 0.5 10/28/22 AUD 68.65
NEW S WALES TREA 0.5 11/18/22 AUD 69.65
NEW S WALES TREA 0.5 12/16/22 AUD 69.44
NEW S WALES TREA 0.5 02/02/23 AUD 69.08
NEW S WALES TREA 0.5 03/30/23 AUD 68.67
TREAS CORP VICT 0.5 08/25/22 AUD 69.35
TREAS CORP VICT 0.5 03/03/23 AUD 69.60
TREAS CORP VICT 0.5 11/12/30 AUD 51.95
CHINA
-----
CHINA GOVT BOND 4.86 08/10/14 CNY 103.66
CHINA GOVT BOND 1.64 12/15/33 CNY 68.81
INDIA
-----
AKSH OPTIFIBRE 1 02/05/13 USD 62.09
JCT LTD 2.5 04/08/11 USD 20.00
JSL STAINLESS LT 0.5 12/24/19 USD 67.15
MASCON GLOBAL LT 2 12/28/12 USD 10.00
PRAKASH IND LTD 5.625 10/17/14 USD 68.72
PRAKASH IND LTD 5.25 04/30/15 USD 61.71
PYRAMID SAIMIRA 1.75 07/04/12 USD 1.00
REI AGRO 5.5 11/13/14 USD 68.67
REI AGRO 5.5 11/13/14 USD 68.67
SHIV-VANI OIL 5 08/17/15 USD 49.98
SUZLON ENERGY LT 5 04/13/16 USD 48.50
JAPAN
-----
COVALENT MATERIA 2.87 02/18/13 JPY 68.19
EBARA CORP 1.3 09/30/13 JPY 100.13
ELPIDA MEMORY 2.03 03/22/12 JPY 14.63
ELPIDA MEMORY 2.1 11/29/12 JPY 14.63
ELPIDA MEMORY 2.29 12/07/12 JPY 14.63
ELPIDA MEMORY 0.5 10/26/15 JPY 14.13
ELPIDA MEMORY 0.7 08/01/16 JPY 15.00
JPN EXP HLD/DEBT 0.5 09/17/38 JPY 64.33
JPN EXP HLD/DEBT 0.5 03/18/39 JPY 63.50
KADOKAWA HLDGS 1 12/18/14 JPY 105.07
SOFTBANK CORP 1.5 03/31/13 JPY 145.44
TOKYO ELEC POWER 1.155 09/08/20 JPY 74.25
TOKYO ELEC POWER 2.347 09/29/28 JPY 67.00
TOKYO ELEC POWER 2.401 11/28/28 JPY 69.13
TOKYO ELEC POWER 2.205 02/27/29 JPY 67.50
TOKYO ELEC POWER 2.114 12/10/29 JPY 68.78
TOKYO ELEC POWER 1.958 07/29/30 JPY 64.63
TOKYO ELEC POWER 2.366 05/28/40 JPY 61.15
MALAYSIA
--------
DUTALAND BHD 7 04/11/13 MYR 0.65
GENCO SHIPPING 5 08/15/15 USD 43.95
PHILIPPINES
-----------
BAYAN TELECOMMUN 13.5 07/15/49 USD 20.50
BAYAN TELECOMMUN 13.5 07/15/49 USD 20.50
SINGAPORE
---------
BAKRIE TELECOM 11.5 05/07/15 USD 57.00
BAKRIE TELECOM 11.5 05/07/15 USD 55.03
BLD INVESTMENT 8.625 03/23/15 USD 60.74
BLUE OCEAN 11 06/28/12 USD 37.38
BLUE OCEAN 11 06/28/12 USD 37.75
CAPITAMALLS ASIA 2.15 01/21/14 SGD 99.65
CAPITAMALLS ASIA 3.8 01/12/22 SGD 100.82
DAVOMAS INTL FIN 11 12/08/14 USD 29.13
DAVOMAS INTL FIN 11 12/08/14 USD 29.02
F&N TREASURY PTE 2.48 03/28/16 SGD 100.48
SOUTH KOREA
-----------
CN 1ST ABS 8 02/27/15 KRW 33.07
CN 1ST ABS 8.3 11/27/15 KRW 34.40
EXP-IMP BK KOREA 0.5 08/10/16 BRL 72.30
EXP-IMP BK KOREA 0.5 09/28/16 BRL 72.06
EXP-IMP BK KOREA 0.5 10/27/16 BRL 71.57
EXP-IMP BK KOREA 0.5 11/28/16 BRL 71.04
EXP-IMP BK KOREA 0.5 12/22/16 BRL 70.57
EXP-IMP BK KOREA 0.5 01/25/17 TRY 74.79
EXP-IMP BK KOREA 0.5 10/23/17 TRY 70.89
EXP-IMP BK KOREA 0.5 11/21/17 BRL 65.30
EXP-IMP BK KOREA 0.5 12/22/17 TRY 70.01
EXP-IMP BK KOREA 0.5 12/22/17 BRL 64.94
GREAT KO 3RD ABS 10 12/29/14 KRW 30.60
HYUNDAI SWISS BK 8.5 10/02/13 KRW 93.29
HYUNDAI SWISS BK 8.5 07/15/14 KRW 87.31
KIBO GRE 1ST ABS 10 01/25/15 KRW 30.48
KIBO GRE 2ND ABS 10 03/20/15 KRW 30.32
SINBO 4TH ABS 8 08/18/14 KRW 30.08
SINBO 7TH ABS 8 09/22/14 KRW 29.84
SINBO CO 3RD ABS 10 09/29/14 KRW 30.60
SRI LANKA
---------
SRI LANKA GOVT 5.8 01/15/17 LKR 72.06
SRI LANKA GOVT 5.8 07/15/17 LKR 70.78
SRI LANKA GOVT 7.5 08/15/18 LKR 73.10
SRI LANKA GOVT 8.5 05/01/19 LKR 75.20
SRI LANKA GOVT 6.2 08/01/20 LKR 61.67
SRI LANKA GOVT 7 10/01/23 LKR 59.24
SRI LANKA GOVT 5.35 03/01/26 LKR 45.29
SRI LANKA GOVT 8 01/01/32 LKR 56.15
THAILAND
--------
BANGKOK LAND 4.5 10/13/03 USD 5.50
*********
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 ***