/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120925.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 25, 2012, Vol. 15, No. 191 Headlines A U S T R A L I A LEHMAN BROTHERS: Aussie Unit Liable For CDO Losses, Judge Rules LIBERTY FUNDING: Moody's Assigns '(P)Ba2' Rating to Cl. D Notes NUFARM AUSTRALIA: S&P Gives 'BB-' Rating on $300-Mil. Notes STORM FINANCIAL: Banks "Motivated by Profits," ASIC Argues C H I N A CHINA HONGGIAO: Fitch Puts Rating on Sr. Unsecured Notes at 'BB' CHINA SOUTH CITY: S&P Gives 'B' Rating on USD-Denominated Notes CHINA TEL GROUP: To Issue 12.2-Mil. Common Shares to Contractors CHINA TEL GROUP: Issues 6.29MM Shares to James Shaw, et al. H O N G K O N G AHL DESIGN: Court Enters Wind-Up Order CHEONG LUNG: Court Enters Wind-Up Order ESSENTIAL ENGINEERING: Court Enters Wind-Up Order FOUR SEA: Court Enters Wind-Up Order JIAO MAO: Court Enters Wind-Up Order LLS CREATION: Court Enters Wind-Up Order OI WAH: Court Enters Wind-Up Order RMJM HK: Court to Hear Wind-Up Petition on Oct. 10 SUNRIVER TECHNOLOGY: Court Enters Wind-Up Order TAI LEE: Creditors' Proofs of Debt Due Oct. 5 I N D I A ALAPATT JEWELLERY: ICRA Rates INR5cr Loan at '[ICRA]BB-' ASSOCIATED HOTELS: ICRA Cuts Rating on INR15.76cr Loans to 'D' BINJRAJKA STEEL: ICRA Rates INR10cr LT Loan '[ICRA]B+' FAMOUS VITRIFIED: ICRA Puts '[ICRA]B' Rating on INR20cr Loans GOEL EXIM: ICRA Reaffirms '[ICRA]BB-' Rating on INR50cr Loan KANCHANA AUTO: ICRA Reaffirms 'BB' Rating on INR10.17cr Loan MADHAVI OILS: ICRA Assigns '[ICRA]B+' Rating to INR7cr Loan NAVASAKTHI TOWNSHIPS: ICRA Puts 'B+' Rating to INR15cr Loan ONE POINT: ICRA Rates INR19.13cr Loan at '[ICRA]BB' OSCAR CERAMICS: ICRA Puts '[ICRA]B+' Rating on INR4.85cr Loan PEEKAY AGENCIES: ICRA Rates INR3cr Loan at '[ICRA]BB-' PRIYANKA GEMS: ICRA Reaffirms 'B+' Rating on INR54.41cr Loan RUCHI GLOBAL: ICRA Assigns '[ICRA]BB' Rating to INR9cr Loan SHREE AMBE: ICRA Assigns 'BB+' Rating to INR7.15cr Loans I N D O N E S I A TELKOM: Unit's Bankruptcy Stirs Fears of Legal Abuses J A P A N GK MLOX3: Fitch Affirms Junk Rating on JPY1.78-Bil. Class D Notes RENESAS ELECTRONICS: Japan Fund May Counter KKR Offer * JAPAN: Moody's Sees Weak Prospects for Real Estate Sector * JAPAN: Moody's Says China Dispute Has Negative Impact on Cos. M A L A Y S I A RHB BANK: Moody's Assigns 'D' BFSR; Outlook Stable N E W Z E A L A N D BROADLANDS FINANCE: S&P Gives 'CCC/C' Issuer Credit Ratings LDC FINANCE: High Court Appoints Interim Liquidators S I N G A P O R E AGV LTD: Court to Hear Wind-Up Petition Oct. 5 CLARITY SYSTEMS: Creditors' Proofs of Debt Due Oct. 19 CLOUD 9: Creditors Get 100% Recovery on Claims ENCENTUATE PTE: Creditors' Proofs of Debt Due Oct. 19 EZIHOME PTE: Court to Hear Wind-Up Petition Oct. 5 S R I L A N K A PEOPLE'S LEASING: Fitch Assigns Issuer Default Rating at Low-B X X X X X X X X * BOND PRICING: For the Week Sept. 17 to Sept. 21, 2012 - - - - - ================= A U S T R A L I A ================= LEHMAN BROTHERS: Aussie Unit Liable For CDO Losses, Judge Rules --------------------------------------------------------------- Madeleine Coorey at AFP reports that three Australian councils on Friday won their case against a Lehman Brothers subsidiary over losses they incurred on complex investment products that crashed during the global financial crisis. According to AFP, the legal firm representing the councils said the decision is seen as a test case as it follows the first full trial into the conduct of an investment bank in relation to the manufacture and distribution of the synthetic derivative investments known as collateralized debt obligations (CDOs). AFP says the class action for 72 councils, charities and churches accused Lehman Brothers Australia, formerly Grange Securities, of alleged misleading conduct, breach of fiduciary duty and negligence in its marketing of CDOs. In his decision, AFP relates, Federal Court Justice Steven Rares said the products were essentially a "sophisticated bet" and had high risks despite being portrayed as prudent and readily redeemable for cash. Justice Rares said the councils were told that if they were held to maturity they would get their money back and that their high credit ratings put them in the same "universe" as debts of the AAA-rated Australian government. "Grange also represented to the councils that the investments, including synthetic CDOs that it recommended or made on their behalves, were suitable for a conservative investment strategy," he said. According to the news agency, Justice Rares said while each of the three councils that led the case had different complaints, in relation to two councils "Grange was negligent in recommending to and advising" they made those investments. Grange engaged in misleading and deceptive conduct when it promoted CDOs to the councils as suitable investments and also breached its fiduciary duties as a financial advisor to two councils, Justice Rares, as cited by AFP, said. "For these reasons, Grange is liable to compensate the councils for their losses incurred as a result of their investments," the report quotes Justice Rares as saying. Justice Rares did not fix a figure on the compensation, saying the parties would need to come together to discuss damages and he will hear submissions on the matter in November, AFP adds. The three councils -- Wingecarribee, Parkes and Swan City -- had sought damages of up to AUD200 million (US$209 million) -- the amount that all the claimants claimed to have lost on the risky investments purchased before 2007, AFP discloses. Most of the CDOs on which the councils lost money were bought from Grange Securities before it was acquired by Lehman Brothers Australia in 2007, the news agency adds. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. LIBERTY FUNDING: Moody's Assigns '(P)Ba2' Rating to Cl. D Notes --------------------------------------------------------------- Moody's Investors Service has assigned provisional ratings to notes issued by Liberty Funding Pty Ltd in respect of Liberty Series 2012-1 Auto. Issuer: Liberty Series 2012-1 Auto AUD108.75 million Class A Notes, Assigned (P)Aaa (sf); AUD22.50 million Class B Notes, Assigned (P)A1 (sf); AUD6.75 million Class C Notes, Assigned (P)Baa1 (sf); AUD8.25 million Class D Notes, Assigned (P)Ba2 (sf); The AUD3.75 million Class E Notes are not rated by Moody's. The subject transaction is an Australian ABS. It is a cash securitization of auto loans extended to prime and non-conforming consumer obligors located in Australia and secured by motor vehicles. This is Liberty Financial's sixth auto ABS transaction. Ratings Rationale In broad terms Liberty Series 2012-1 Auto replicates structures seen in previous transactions sponsored by Liberty Financial. Notable features of the transaction include the presence of a prefunding period, a credit reserve funded initially at 3% of the outstanding note balance and the use of a two-tiered funding structure. The transaction includes a prefunding period, whereby Liberty Funding will issue notes up to AUD150 million, based on the initial pool of AUD113.85 million. During the three month prefunding period Liberty will originate loans up to the prefunding amount of AUD33.14 million, which will be sold into the trust. The reserve account is initially funded at AUD4.5 million or 3% of the aggregate initial note balance. The account traps excess spread until it reaches 10% of the current outstanding note balance. Once it reaches 10% it will amortize to remain at 10% of the current outstanding balance of notes until it reaches a floor of AUD2.25 million. The reserve account will be available to meet losses on the loans and charge-offs against the notes. In addition, it can also be used to cover any liquidity shortfalls that remain uncovered after drawing on the liquidity reserve and principal Liberty has utilized a two-tier structure whereby the notes issued by Secure Funding as trustee of the trust are initially subscribed to by Liberty Funding, another Special Purpose Vehicle. Liberty Funding will then issue notes (contemplated above), identical to the notes they have subscribed to. Secure funding will pass through all income in accordance with the income and principal waterfalls it is governed by, with Liberty Funding distributing funds to noteholders. The pool includes a 19.88% exposure to non-conforming obligors, albeit lower than in previous Liberty sponsored transactions. This is change is reflective of Liberty's move towards originating higher volumes to prime obligors. Moody's considers non-conforming obligors to have a higher level of risk than prime obligors and this is a negative feature of the transaction. At the same time, the deal is exclusively backed 100% by cars, predominantly passenger vehicles. Motor vehicles exhibit less pro-cyclical default patterns and, on average, higher recovery rates. In order to fund the purchase price of the portfolio, the Trust will issue 5 classes of notes. The notes will be repaid on a sequential basis in the initial stages until the subordination percentage increases from the initial 27.5% to 55% (excluding credit reserve) and during the tail end of the transaction. The structure will follow a pro rata repayment profile, subject to satisfaction of step down criteria. The Class E notes do not step down. The ratings are based on the credit enhancement provided by the subordinated notes and the credit reserve, in total equal to 30.5% for the Class A Notes. Moody's base case assumptions are a default rate of 8.50% and a recovery rate of 35%. These imply an expected (net) loss of 5.53%. Both the default rate and the recovery rate have been stressed relative to observed historical levels of 7.63% and 47% respectively. The ratings address the expected loss posed to investors by the legal final maturity. The structure allows for timely payment of interest and ultimate payment of principal by the legal final maturity. VOLATILITY ASSUMPTION SCORES AND PARAMETER SENSITIVITIES The V Score for this transaction is Medium/High, which is higher than the score assigned for the Australian auto ABS sector - this transaction has been benchmarked to the prime auto ABS sector, given the majority of obligors have no current adverse credit history, however the expected loss assumption is significantly higher than the peer group. With regard to performance variability Medium/High; while Moody's has been provided with detailed vintage and individual default data for the 2000 to 2012 period, Liberty's historical origination patterns differ significantly compared to the pool composition -- the majority of loss vintages relate to periods where origination was skewed towards non-conforming obligors. Moody's observes that Australian auto ABS, and specifically past Liberty transactions, have to date been performing stably. With regards to legal and regulatory uncertainty, Moody's assigns a medium due to the recent introduction of the Personal Property Securities Act (PPSA) which may lead to operational issues in the short term. Overall, the V score of Medium/High indicates there is a higher possibility of deviation in performance, relative to peer portfolios. V Scores are a relative assessment of the quality of available credit information and of the degree of uncertainty around various assumptions used in determining the rating. High variability in key assumptions could expose a rating to more likelihood of rating changes. The V Score has been assigned accordingly to the report "V Scores and Parameter Sensitivities in the Asia/Pacific RMBS Sector", published in March 2009. Parameter Sensitivities are designed to provide a quantitative calculation of how the initial rating might change if key input parameters used in the initial rating process - here, the expected loss and the Aaa credit enhancement - differed. The analysis assumes that the deal has not aged. Parameter Sensitivities only reflect the ratings impact of each scenario from a quantitative/model-indicated standpoint. In the case of Liberty Series 2012-1 Auto, the model indicated rating for the Class A Notes remains investment grade (6 notch downgrade to A3) when the default rate rises to 12.75% and the recovery rate is halved to 17.50%. The model indicated rating for the Class B Notes drops 7 notches to Ba2 in the above scenario. Rating Methodology The principal methodology used in this rating was "Moody's Approach to Rating Australian Asset-Backed Securities" published in July 2009. NUFARM AUSTRALIA: S&P Gives 'BB-' Rating on $300-Mil. Notes ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' long-term rating to Nufarm Australia Ltd.'s proposed US$300 million notes issue. The rating is subject to the terms and conditions of the final documents. "At the same time, we have assigned a recovery rating of '5' on the proposed notes. This indicates our expectations for modest recovery (10%-30%) should a default event occur," S&P said. "The proposed senior unsecured notes are to be guaranteed by Nufarm Ltd. (BB/Stable/--) and will rank at least pari passu with all other unsecured and unsubordinated debt. The net proceeds of the bond issue are to be used to repay existing secured bank debt facilities," S&P said. "The 'BB' rating on Australia-based Nufarm Ltd., one of the world's top-10 makers of crop-protection products (such as herbicides, insecticides, and fungicides), reflects the company's exposure to cyclical agribusiness sectors, with a strong earnings bias to the second-half of the year. These weaknesses are partially offset by our view of the company's solid position in select global crop-protection markets, geographically-diverse operations, and strategic alliances with key global players," S&P said. STORM FINANCIAL: Banks "Motivated by Profits," ASIC Argues ---------------------------------------------------------- The Australian Securities and Investments Commission told a court that banks were "motivated by profits" when they involved themselves in an unregistered financial scheme that cost investors billions of dollars, Australian Associated Press reports. The ASIC is pursuing two banks -- Macquarie Bank and the Bank of Queensland -- over the collapse of Storm Financial, AAP says. The news agency notes that Storm's clients, many of them retirees and small investors, lost about AUD3.6 billion when the Townsville-based financial services company folded in early 2009. According to the news agency, ASIC lawyer Allan Myers QC opened the case against the banks in the Federal Court in Brisbane on Monday. AAP relates that Mr. Myers gave details of how the financial company grew by providing standardised advice that founder Emmanuel Cassimatis described as a "T-model Ford production line." AAP adds that Mr. Myers said Storm arranged for first-time investors, most of them retirees, to borrow against their assets. Storm would then effectively double-mortgage these assets by investing the money in indexed funds and margin loans. According to the report, Mr. Myers described the scheme as a "well-oiled machine" which was "based on optimism about ever- increasing values of listed shares". "Once you were in the Storm system all you had to do was sit back and relax and wait until you got richer," the report quotes Mr. Myers said. "What's the end? We all know the end. It's tears, because having leveraged yourself, you expose yourself to market volatility." Mr. Myers, as cited by AAP, said ASIC wanted the court to declare that the banks "were knowingly concerned in the operation of the unregistered scheme" and were aware investors would lose their money if the market crashed, as it did during the global financial crisis. 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. ========= C H I N A ========= CHINA HONGGIAO: Fitch Puts Rating on Sr. Unsecured Notes at 'BB' ---------------------------------------------------------------- Fitch Ratings has assigned primary aluminium manufacturer China Hongqiao Group Limited's (Hongqiao; 'BB'/Positive) proposed senior unsecured notes an expected 'BB(EXP)' rating. The final rating of the proposed notes is contingent upon the receipt of documents conforming to information already received. Net proceeds from the issue will mainly be used for the expansion of production capacity, refinancing existing debt and general corporate purposes. Hongqiao's ratings are supported by its stable profitability and cash generation, a result of its power and alumina cost advantages over Chinese peers, and by its low financial leverage. The company generated EBITDA of CNY5,246 per ton during H112, compared with CNY5,560 for the whole of 2011. Financial leverage, as measured by adjusted net debt /operating EBITDAR over the last 12 months, remained below 1.0x at end-H112. The ratings are constrained by Hongqiao's operation concentration in Shandong province. The Positive Outlook reflects Fitch's expectation that Hongqiao's cost advantages should improve further once the company has secured long-term bauxite supply and reaches 70% electricity self- sufficiency in 2013, up from less than 50% in 2011. WHAT COULD TRIGGER A RATING ACTION? Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- resolution of long term alumina supply issues in the wake of the Indonesian bauxite export ban announced in May 2012 -- 70% electricity self-sufficiency rate -- financial leverage below 1.0x on a sustained basis Negative: The current Rating Outlook is Positive. As a result, Fitch's sensitivities do not currently anticipate developments with a material likelihood, individually or collectively, of leading to a rating downgrade. CHINA SOUTH CITY: S&P Gives 'B' Rating on USD-Denominated Notes --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' issue rating to the proposed issue of U.S.-dollar-denominated senior unsecured notes by China South City Holdings Ltd. (CSC; B+/Stable/--; cnBB/- -). "At the same time, we assigned our 'cnBB-' Greater China regional scale rating to the proposed notes. The ratings are subject to our review of the final issuance documentation. CSC intends to use some of the bond proceeds for refinancing," S&P said. "The issue rating is one notch lower than the corporate credit rating to reflect our opinion that offshore noteholders would be materially disadvantaged, compared with onshore creditors, in the event of default. In our view, CSC's ratio of priority borrowings to total assets is likely to remain above our notching threshold of 15% for speculative-grade debt," S&P said. "The rating on CSC reflects ongoing execution risk from the company's aggressive expansion into new markets and its large capital expenditure on new investments and project developments. The rating also factors in potential financial volatility due to project concentration risk and its exposure to the cyclical and highly competitive real estate sector in China. Tempering these weaknesses are CSC's established track record as a large-scale trade center developer, its low-cost and expanded land bank, an improving track record outside Shenzhen, and government support for project development. CSC's small but growing rental income provides additional support to the rating. We view the company's business risk profile as 'weak' and its financial risk profile as 'aggressive,' as our criteria define those terms," S&P said. "The stable outlook on the corporate credit rating reflects our expectation that CSC's sales performance will continue to improve in fiscal 2013 (ending March 31, 2013). An improvement would provide a buffer for incremental borrowings. We expect CSC to increase its recurring income from rental properties steadily over the next 12 months--although at a slower pace than sales growth. We anticipate that CSC can maintain 'adequate' liquidity while pursuing aggressive growth over the next two years. We also expect its credit ratios in fiscal 2013 to remain fairly stable," S&P said. CHINA TEL GROUP: To Issue 12.2-Mil. Common Shares to Contractors ---------------------------------------------------------------- VelaTel Global Communications, Inc., formerly known as China Tel Group Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 relating to the registration of 12,233,719 shares of common stock issuable to independent contractors. The proposed maximum aggregate offering price is $486,901. A copy of the Form S-8 is available at http://is.gd/e5G8lY About China Tel Based in San Diego, California, and Shenzhen, China, China Tel Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/-- provides high speed wireless broadband and telecommunications infrastructure engineering and construction services. Through its controlled subsidiaries, the Company provides fixed telephony, conventional long distance, high-speed wireless broadband and telecommunications infrastructure engineering and construction services. ChinaTel is presently building, operating and deploying networks in Asia and South America: a 3.5GHz wireless broadband system in 29 cities across the People's Republic of China with and for CECT-Chinacomm Communications Co., Ltd., a PRC company that holds a license to build the high speed wireless broadband system; and a 2.5GHz wireless broadband system in cities across Peru with and for Perusat, S.A., a Peruvian company that holds a license to build high speed wireless broadband systems. After auditing the 2011 results, Kabani & Company, Inc., in Los Angeles, California, expressed substantial doubt as to the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred a net loss for the year ended Dec. 31, 2011, cumulative losses of $254 million since inception, a negative working capital of $16.4 million and a stockholders' deficiency of $9.93 million. The Company reported a net loss of $21.79 million in 2011, compared with a net loss of $66.62 million in 2010. The Company's balance sheet at June 30, 2012, showed $15.91 million in total assets, $20.01 million in total liabilities and a $4.09 million total stockholders' deficiency. CHINA TEL GROUP: Issues 6.29MM Shares to James Shaw, et al. ----------------------------------------------------------- Since its most recent report filed on any of Forms 8-K, 10-K or 10-Q, VelaTel Global Communications, Inc., formerly known as China Tel Group Inc., has made sales of unregistered securities, namely shares of the Company's Series A common stock and shares of the Company's Series B common stock. The aggregate number of Series A Shares and Series B Shares sold exceeds 5% of the total number of Series A Shares and Series B Shares issued and outstanding as of the Company's latest filed Report, on Form 8-K filed on Sept. 14, 2012. On Sept. 20, 2012, the Company issued 2,097,848 Series A Shares and 2,097,848 warrants to each of James Shaw, Steven O. Smith and Ann Stowell, for a total of 6,293,544 Shares and 6,293,544 warrants in partial payment of a line of credit promissory note of up to $1,052,631 in favor of Weal Group, Inc., and partially assigned to James Shaw, Steven O. Smith and Ann Stowell. Each warrant gives the holder the right to purchase one Series A Shares at an exercise price of $0.0251 and with an exercise term of three years. This sale of Series A Shares resulted in a principal reduction of $144,731 in notes payable of the Company, and payment of accrued interest of $13,236. On Sept. 20, 2012, the Company issued 8,000,000 Series B Shares to Colin Tay, the Company's President. Each Series B Share has the right to cast ten votes for each action on which the Company's shareholders have a right to vote, whereas each Series A Share has the right to cast one vote. The Company believes it is in its best interests to maintain management voting control of the Company, including avoidance of the expense of soliciting proxies for corporate actions requiring shareholder approval. Prior to this issuance, there were 2,000,000 Series B Shares issued and outstanding, all of which are beneficially owned or their voting rights controlled via proxies held by various members of the Company's management team. The Company issued 8,000,000 additional Series B Shares to Colin Tay in order to maintain such management voting control, taking into account the number of Series A Shares currently issued and outstanding, as well as additional Series A Shares the Company may issue in the future. There was no financial consideration for the issuances of Series B Shares to Colin Tay. The Series B Shares do not participate in any declared dividends. The Series B Shares are redeemable on May 23, 2023 at par value of $0.001 per share. The consent of 80% of the holders of issued and outstanding Series B Shares is required in order to sell, assign or transfer any of the Series B Shares. In addition to the aforementioned sales of unregistered Shares, the Company issued 12,233,719 registered Shares pursuant to a Form S-8 Registration Statement filed on Sept. 19, 2012. As of Sept. 20, 2012, and immediately following the issuances, the Company has 43,481,826 shares of its Series A common stock outstanding, with a par value of $0.001, and 6,000,000 shares of its Series B common stock outstanding, with a par value of $0.001. About China Tel Based in San Diego, California, and Shenzhen, China, China Tel Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/-- provides high speed wireless broadband and telecommunications infrastructure engineering and construction services. Through its controlled subsidiaries, the Company provides fixed telephony, conventional long distance, high-speed wireless broadband and telecommunications infrastructure engineering and construction services. ChinaTel is presently building, operating and deploying networks in Asia and South America: a 3.5GHz wireless broadband system in 29 cities across the People's Republic of China with and for CECT-Chinacomm Communications Co., Ltd., a PRC company that holds a license to build the high speed wireless broadband system; and a 2.5GHz wireless broadband system in cities across Peru with and for Perusat, S.A., a Peruvian company that holds a license to build high speed wireless broadband systems. After auditing the 2011 results, Kabani & Company, Inc., in Los Angeles, California, expressed substantial doubt as to the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred a net loss for the year ended Dec. 31, 2011, cumulative losses of $254 million since inception, a negative working capital of $16.4 million and a stockholders' deficiency of $9.93 million. The Company reported a net loss of $21.79 million in 2011, compared with a net loss of $66.62 million in 2010. The Company's balance sheet at June 30, 2012, showed $15.91 million in total assets, $20.01 million in total liabilities and a $4.09 million total stockholders' deficiency. ================ H O N G K O N G ================ AHL DESIGN: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on Sept. 12, 2012, to wind up the operations of AHL Design Workshop Limited. The official receiver is Teresa S W Wong. CHEONG LUNG: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on July 3, 2012, to wind up the operations of Cheong Lung Restaurant Design Limited. The company's liquidators are Wong Sun Keung and Tsui Mei Yuk Janice. ESSENTIAL ENGINEERING: Court Enters Wind-Up Order ------------------------------------------------- The High Court of Hong Kong entered an order on Sept. 12, 2012, to wind up the operations of Essential Engineering Limited. The official receiver is Teresa S W Wong. FOUR SEA: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order to wind up the operations of Four Sea Culture Group Limited. The company's liquidators are Wong Sun Keung and Tsui Mei Yuk Janice. JIAO MAO: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on Sept. 3, 2012, to wind up the operations of Jiao Mao International Shipping Co., Limited. The company's liquidators are Wong Sun Keung and Tsui Mei Yuk Janice. LLS CREATION: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on Sept. 12, 2012, to wind up the operations of LLS Creation Limited. The official receiver is Teresa S W Wong. OI WAH: Court Enters Wind-Up Order ---------------------------------- The High Court of Hong Kong entered an order on Sept. 12, 2012, to wind up the operations of Oi Wah Decoration Engineering Company Limited. The official receiver is Teresa S W Wong. RMJM HK: Court to Hear Wind-Up Petition on Oct. 10 -------------------------------------------------- A petition to wind up the operations of RMJM Hong Kong Limited will be heard before the High Court of Hong Kong on Oct. 10, 2012, at 9:30 a.m. Michael Triebswetter Landschaftsarchitekten Gbr filed the petition against the company on July 30, 2012. The Petitioner's solicitors are: Boase Cohen & Collins 2303-7 Dominion Centre 43-59 Queen's Road East, Hong Kong SUNRIVER TECHNOLOGY: Court Enters Wind-Up Order ----------------------------------------------- The High Court of Hong Kong entered an order on Sept. 12, 2012, to wind up the operations of Sunriver Technology Company Limited. The official receiver is Teresa S W Wong. TAI LEE: Creditors' Proofs of Debt Due Oct. 5 --------------------------------------------- Creditors of Tai Lee Button Manufacturing Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 5, 2012, to be included in the company's dividend distribution. The company's liquidators are: Kenny King Ching Tam Shum Lap Chi Room 908, 9/F Nan Fung Tower 173 Des Voeux Road Central, Hong Kong ========= I N D I A ========= ALAPATT JEWELLERY: ICRA Rates INR5cr Loan at '[ICRA]BB-' -------------------------------------------------------- ICRA has assigned long-term rating of '[ICRA]BB-' to the INR5.50 crore fund based facilities of Alapatt Jewellery. The outlook on the long-term rating is stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund based facilities 5.50 [ICRA]BB- (Stable) (long-term) assigned The assigned rating factors in the experience of the promoters in the jewellery retailing business spanning over two decades, the established market presence in a prominent location in Cochin and the healthy profit margins generated on account of a substantial portion of sales derived from value added and diamond jewellery. The rating is, however, constrained by the Firm's relatively small scale of operations which restricts financial flexibility, the intense competitive pressures prevalent in the highly fragmented jewellery retail industry and the inherent susceptibility of the industry's profitability to gold price fluctuations and foreign exchange rates. The rating also factors in the presence of many family owned entities under the name Alapatt which leads to brand ambiguity and the significant geographical concentration risk with a single showroom presence in Cochin (Kerala). The Firm's working capital intensity is very high, characterized by large inventory requirements (higher than industry average), which is reflected in the high utilization levels of its cash credit facilities. The rating also takes note of the recent decline in domestic gold jewellery volumes on the back of unabated rise in gold prices. However, the Firm is expected to benefit from the healthy long term demand prospects for the jewellery retail industry in India. Alapatt Jewellery is a partnership firm set up by Mr. Jose Alapatt in Cochin (Kerala) in 1994. The Firm is currently engaged in the business of gold and diamond jewellery retailing and operates with single retail showroom (-15,000 square feet area) located in Cochin. The Firm mainly procures bullion from Bank of Nova Scotia and outsources jewellery manufacturing to local goldsmiths. Recent Results According to unaudited results, AJY reported net profit of INR3.4 crore on operating income of INR23.3 crore during 2011-12 as against net profit of INR2.3 crore on operating income of INR19.0 crore during 2010-11. ASSOCIATED HOTELS: ICRA Cuts Rating on INR15.76cr Loans to 'D' -------------------------------------------------------------- ICRA has revised downwards the long-term rating to '[ICRA]D' from '[ICRA]B' for the INR13.76 crore term loans and INR1.00 crore fund based bank facilities of Associated Hotels Private Limited. ICRA has also revised downwards the short-term rating to '[ICRA]D' from '[ICRA]A4' for the INR1.00 crore non-fund based bank facilities of AHPL. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loans 13.76 [ICRA]D downgraded Fund Based Limits 1.00 [ICRA]D downgraded Non-Fund Based Limits 1.00 [ICRA]D downgraded The rating downgrade reflects delays in debt servicing by the company, due to strained liquidity conditions. The company has a moderate scale of operations with high concentration of revenues towards the Ahmedabad hospitality market. The financial profile of the company is weak characterized by large corporate guarantees extended on behalf of its associate company and large cross holdings/inter-linkages between the group companies. The hotel is expected to face competitive pressure with the incremental supply coming up in Ahmedabad especially with the entry of international players with stronger brand and deeper resources. Associated Hotels Private Limited, incorporated on May 31, 1988, is a subsidiary of DB Hospitality Private Limited, the hospitality arm of Dynamix Balwa Group. The company has multiple presence in the hospitality space in Ahmedabad with it owning the 63 room 'Le Meridien' in the city, and running Bica Lounge, Conwood Snacks Counter and Conwood in-flight at Ahmedabad airport. While the Airport business was started in 2007, the hotel was built in 1992- 93. It was started as Hotel Royal Balwas and was subsequently run as Holiday Inn from 1996-2003 under a management contract with InterContinental Hotels Group. AHPL then, in 2003, entered into a management contract with Starwood Hotels & Resorts Worldwide Inc. to operate the hotel under their European brand Le Meridien for a ten year period ending 2013. Recent Results AHPL reported a net profit of INR0.9 crore in 2010-11 on an operating income of INR14.5 crore. The same for 2011-12 (provisional) stood at a profit of INR0.2 crore on an operating income of INR13.1 crore. BINJRAJKA STEEL: ICRA Rates INR10cr LT Loan '[ICRA]B+' ------------------------------------------------------ ICRA has assigned an '[ICRA]B+' rating to the INR10.00 crore fund based facilities of Binjrajka Steel Tubes Limited. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Long Term Fund Based 10.00 [ICRA]B+ assigned Limits The assigned rating is constrained by BSTL's moderate financial profile primarily characterized by moderate operating profitability and moderate gearing levels, cyclical nature of the steel industry, competitive threats from other players in the industry and substitution risk from other pipe segments. Given the expected growth in operations, the capital structure of the company could deteriorate further on account of high working capital debt as the operating profits, which have remained low historically, could be insufficient to fund the increasing working capital requirements. This could further lead to stretched cash flows if adequate funds are not made available to support the stated growth plans. The rating also factors in the high geographic concentration in BSTL's operations. The rating however, favorably factors in the long experience of BSTL's promoters in the steel tubes manufacturing business, steady growth in operating income in last 4 years and well established relationships with suppliers and customers within the traders and wholesaler community which ensures smooth supply of tubes and pipes. ICRA also notes that limited raw material inventory keeps the company isolated from the price risk resulting from adverse movement in steel prices. Binjrajka Steel Tubes Limited is a Hyderabad based company which was initially incorporated as a SSI (small scale industry) in 1981. BSTL, which was converted into a public limited company in 1986, is involved into the manufacturing of pre galvanized mild steel pipes and tubes, MS black pipes, square pipes, round pipes and rectangular pipes within the ERW pipe segment. Since the time of inception, the company has been promoted by the members of Binjrajka family which includes Late Mr Govind Prasad Binjrajka and his 4 sons. FAMOUS VITRIFIED: ICRA Puts '[ICRA]B' Rating on INR20cr Loans ------------------------------------------------------------- The rating of '[ICRA]B' has been assigned to INR6.00 crore fund- based cash credit facility and INR14.00 crore term loan facility of Famous Vitrified Private Limited. The rating of '[ICRA]A4' has also been assigned to the INR1.83 crore short-term non-fund based facilities of FVPL. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Cash Credit 6.00 [ICRA]B assigned Term Loan 14.00 [ICRA]B assigned Bank Guarantee 1.75 [ICRA]A4 assigned CEL 0.08 [ICRA]A4 assigned The assigned ratings take into account FVPL's limited track record of operations and weak financial indicators as reflected by net losses, stretched capital structure, modest debt coverage indicators and high working capital intensity. The ratings also take note of the dependence of operations and cash flows of the company on the performance of the real estate industry which is the main consumer sector and exposure of profitability to availability and increasing prices of natural gas with gas being the major fuel. Further the ratings are constrained by highly competitive business environment on account of presence of large number of organized as well as unorganized players in the region as well as import of ceramic tiles from China. However, the ratings favorably factor in the long experience of the key promoters in the ceramic industry and the location advantage enjoyed by FVPL giving it easy access to raw material sources. Famous Vitrified Private Limited was incorporated in 2010 and is promoted by Mr. Savji Sanaria, Mr. Ashwin Godhasara, Mr. Hiren Kanani and Mr. Rajesh Patel. The company manufactures vitrified tiles of size 605x605 mm with its current set of machineries. The plant is located in Morbi, Gujarat and operates with an installed capacity to manufacture 46,500 MTPA of tiles. The promoters are associated with other concerns viz. Famous Ceramic Industries., M/s Uttam Ceramics Private Limited which are present in similar line of business. Recent Results During FY 2012, FVPL reported net losses of INR0.28 crore on an operating income of INR11.25 crore. GOEL EXIM: ICRA Reaffirms '[ICRA]BB-' Rating on INR50cr Loan ------------------------------------------------------------ ICRA has reaffirmed the rating of '[ICRA]BB-' assigned to INR50.0 Crore1 bank limits of Goel Exim India Private Limited. The Outlook on the long-term rating is Stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund-Based limits 50.0 [ICRA]BB- (Stable) Reaffirmed The reaffirmation of ratings factors in the established presence of the promoters of the company in trading and distribution of gold and gold jewellery and favorable demand growth prospects in India in medium to long term. The ratings are, however, constrained by highly competitive nature of the gold jewellery industry characterized by many organized and unorganized players resulting in low profitability margins; high geographical and customer concentration risk; susceptibility of profitability to adverse movement in gold prices; moderately high financial risk profile characterized by moderate return indicators, high gearing level and low coverage indicators; and tight liquidity position as reflected in high utilization of working capital limits. Significant increase in working capital intensity resulting in deterioration of profitability and debt coverage metrics would be a key rating sensitivity. Goel Exim India Private Limited is a manufacturer, wholesaler and trader of gold, diamonds and silver ornaments/jewellery. GEIPL has a presence largely in gold jewellery, which contributes to more than 90% of revenues. The company was incorporated in the year 2004. The company procures gold under the Metal Loan Scheme from Bank of Nova Scotia. GEIPL's customers are primarily wholesalers and retailers based in New Delhi. GEIPL has acquired two partnership firms, namely, Shree Ganpati Impex and Bhavya Gold with effect from 15 March 2010. The previous directors of the company, Mr. Ashok Goel and Mr. Pravin Gupta, continued to be the directors of Goel Exim (India) Private Ltd. The partners of both the firms are shareholders of the company. Recent Results Goel Exim India Private Limited reported a turnover of INR481.53 Crore and a net profit of INR3.06 Crore during financial year 2011-12. The company had reported a turnover of INR450.55 Crore and a net profit of INR3.40 Crore during 2010-11. KANCHANA AUTO: ICRA Reaffirms 'BB' Rating on INR10.17cr Loan ------------------------------------------------------------ ICRA has reaffirmed the long term rating at '[ICRA]BB' to the INR8.30 crore fund based facilities and INR1.87 crore Term Loan of Kanchana Automobiles Private Limited. The outlook on the long- term rating is 'Stable'. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund Based Limits 8.30 Reaffirmed at [ICRA]BB (Stable) Term Loan 1.87 Reaffirmed at [ICRA]BB (Stable) The rating reaffirmation takes into account KAPL's healthy revenue growth in FY2012, its continued leading market position as an authorised dealer of HMIL in the coastal Karnataka region (from Karwar to Mangalore) and HMIL's second largest position in the Indian passenger car segment. The rating is, however, constrained by KAPL's stretched credit profile characterized by thin margin, which is inherent in the automotive dealership business; high gearing level and below moderate debt coverage indicators. Further, the rating factors in KAPL's moderate scale of operation and the increasing competitive intensity in its area of operation, compounded with the entry of a new HMIL authorized dealer in FY2011. The ability of KAPL to protect and grow its market share amid the high competitive intensity as well as to manage its working capital intensity would remain the key rating sensitivities. KAPL is the authorized dealer for HMI) for coastal Karnataka region since 2006. It has sales and service outlets at Udupi, Mangalore, Karwar, Puttur and Sirsi for Hyundai Passenger cars. The promoters, Mr. Prasad Raj Kanchan, Chairman and Managing Director, and Mrs. Sukanya Kanchan, are present in the automobile sector in Mangalore for over 10 years through its dealership of TVS Motors Co. Ltd. Detail of the company's outlets is provided in the table below: Recent Results ITHPL has reported Profit After Tax (PAT) of INR0.2 crore on an operating income of INR57.2 crore in FY2012 (provisional numbers) as compared to PAT of INR0.2 crore on an OI of INR47.5 crore in FY2011. MADHAVI OILS: ICRA Assigns '[ICRA]B+' Rating to INR7cr Loan ----------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]B+' for INR7.00 crore1 fund based limits of Madhavi Oils & Fats. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund based limits 7.00 [ICRA]B+ Assigned The assigned rating is constrained by the intensely competitive and fragmented nature of the edible-oil industry marked by presence of numerous unorganized players, which, along with the regulatory restrictions on pricing and absence of any retail brand for the company; exert pressures on its pricing and profitability. Further, the rating also takes into consideration the trend of decline in operating income of the company, and its susceptibility to policy risks affecting the availability of crude- which in turn is exposed to climatic risks and international policies on cultivation of palm. The aforementioned concerns are partially offset by the long- standing experience of the promoters in the industry and the attractive demand prospects for the edible oil industry in India. Further, the company has plans of vertical integration into manufacturing of crude palm oil, which should improve the raw material availability and the plant utilization levels. Madhavi Oils & Fats was established in the year 2009 and is involved in the Manufacturing & Marketing of edible oils like Rice Bran Oil, Palm Oil, and Vanaspathi. Recent Results The company reported a net profit of INR0.41 crore during the FY 2012 and an operating income of INR31.08 crore as against a net loss and operating income of INR0.16 crore and INR35.23 crore respectively during FY 2011. NAVASAKTHI TOWNSHIPS: ICRA Puts 'B+' Rating to INR15cr Loan ----------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]B+' to the INR15.0 crore term loans of Navasakthi Townships Developers Private Limited. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loans 15.00 [ICRA]B+ assigned The rating assigned considers the high competitive intensity in the real estate segment, the cyclicality in the industry which exposes the company to demand risks, and the high dependence on customer advances for funding the ongoing and planned projects. ICRA notes that any downturns in sales bookings for the current projects can adversely impact the cashflows and debt servicing ability of the company. The rating also factors in the vulnerability of profit margins to fluctuations in raw material and labor costs, the moderate financial risk profile characterized by fluctuating profitability and high gearing levels, and the high working capital intensity on account of land purchases for ongoing and planned projects. The rating, however, favorably considers the longstanding experience and track record of the promoters in the civil construction industry, the favorable response to the company's first township project with over 490 villas, which has been completed and handed over, and the significant progress achieved on the ongoing projects, which have favorable demand prospects. Navasakthi Townships Developers Private Limited, incorporated in 2007, is engaged in the business of developing real estate projects, mainly integrated township projects. The company is promoted by Dr. K I Manirathinem and Ms M Usha. The promoters have over two decades of experience in the construction field. The first project undertaken by the company was the Anugraha Satellite Township project at Cuddalore on the East Coast Road (ECR), which consists of over 490 individual villas over 83 acres of land. All the units in this township have been sold out and handed over; in addition, the company is currently undertaking a second phase of development with 120 more villas. NTDPL is also promoting a second project (La France Villa) on the ECR in Pondicherry, which consists of 473 villas spread over 60 acres of land. This project is currently in the execution stage. In addition to these ongoing projects, the company also has plans to develop townships in the suburbs of Chennai city. ONE POINT: ICRA Rates INR19.13cr Loan at '[ICRA]BB' --------------------------------------------------- ICRA has assigned the long term rating of '[ICRA]BB' to the INR19.13 crore non-fund based limits of One Point Realty Private Limited. The rating carries a Stable outlook. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Non-Fund Based Limits 19.13 [ICRA]BB (Stable) Assigned The rating favorably factors in the adequate booking levels as well as healthy customer advances for its project - One City Rohtak, experience of the promoters in real estate sector and low approval risks. The rating, however, is constrained by the moderate market risk for the unsold area and ORPL's modest scale of operations. Further, the rating also takes into account the exposure to execution risk as part of the project cost is proposed to be funded through customer advances, which are contingent on the ability to maintain healthy sales as well as collection efficiency. Going forward, ability to execute the project in timely manner and maintain sales as well as collection efficiency will be amongst the key rating sensitivities. Established in June 2005 by Mr. Sunil Kumar Jain, One Point Realty Private Limited (ORPL) is part of One Group. The company is currently developing its maiden plotted development project One City, Rohtak spread on a land parcel of 73.09 acre at Sector 37, Rohtak, Haryana. The total project cost is envisaged at INR115 crore (approx). The company as on March 31, 2012 had spent around 38% of the total cost and been able to book around 42% of the saleable plots. Recent Results For the period ending FY11-12 (April 2011-March 2012), the company reported a profit of INR0.64 crore on an operating income of INR16.85 crore as compared to INR0.11 crore on an operating income of INR4.12 crore a year ago. OSCAR CERAMICS: ICRA Puts '[ICRA]B+' Rating on INR4.85cr Loan ------------------------------------------------------------- A rating of '[ICRA]B+' has been assigned to INR2.00 crore1 fund based cash credit facility and INR2.85 crore term loan facility of Oscar Ceramics. A rating of '[ICRA]A4' has also been assigned to INR0.45 crore short-term non-fund based facilities of OC. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Cash Credit Limit 2.00 [ICRA]B+ assigned Term Loans 2.85 [ICRA]B+ assigned Bank Guarantee 0.45 [ICRA]A4 assigned Letter of Credit (2.05) [ICRA]A4 assigned The ratings assigned take into account OC's small scale of operation and weak financial profile as reflected by stagnant operating income, high working capital intensity and stretched liquidity. The ratings also take into consideration the disadvantage arising from the single product portfolio as well as intense competition with presence of large established organized tile manufacturers and unorganized players. ICRA also notes the dependence of operations and cash flows of the firm on the performance of the real estate industry which is the main consumer sector, and vulnerability of profitability to increasing prices of gas and power. The ratings however have favorably considered the experience of the key promoters in the ceramic industry, location advantage enjoyed by OC giving it easy access to raw material. Oscar Ceramics is a wall tiles manufacturer with its plant situated at Morbi, Gujarat. The firm was established in 1999. OC is managed by Mr. Dharmesh Patel and other partners. The plant has an installed capacity to manufacture 11,250 MT of wall tiles p.a. OC currently manufactures wall tiles of size 12" X 18", and 12" X 24". The firm has installed digital printing tiles manufacturing machine imported from Spain in August, 2012 commercial production from which is expected to start from end of September, 2012. Recent Results For the year ended March 31, 2012, OC reported an operating income of INR6.41 crore and profit after tax of INR0.30 crore as against an operating income of INR6.22 crore and a profit after tax of INR0.47 crore during FY 2011. PEEKAY AGENCIES: ICRA Rates INR3cr Loan at '[ICRA]BB-' ------------------------------------------------------ ICRA has assigned an '[ICRA]BB-' rating to the INR3.00 crore fund based bank facilities of Peekay Agencies Private Limited. The outlook on the long term rating is stable. ICRA has also assigned an '[ICRA]A4' rating to the INR2.50 crore fund based and INR3.00 crore non-fund based bank facilities of PAPL. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund Based Limit-Cash 3.00 [ICRA]BB-(Stable) assigned Credit Fund Based Limit-Bills Discounting 2.50 [ICRA]A4 assigned Non-Fund Based Limit- 3.00 [ICRA]A4 assigned Letter of Credit The ratings take into account the experience of the promoters in trading of chemicals, wide customer base and diversified product portfolio which partially mitigates off-take risks and its established relationship with suppliers which ensures regular supply of traded chemicals. ICRA takes note of the stable revenue derived by the company on account of being the sole distributor of some of the reputed chemical manufacturers. The ratings, however, also take into account the intense competition from organized and unorganized players in the industry, PAPL's moderate scale of current operations with low turnover and profits, notwithstanding an increase in the last two years and its weak financial profile characterized by high gearing and weak coverage indicators. Susceptibility of PAPL's margins to fluctuations in exchange rates and volatility in prices of chemicals have also been considered while assigning the ratings. Incorporated in 1989, PAPL is primarily engaged in the trading of various chemicals. PAPL purchases chemicals from the domestic market and also imports from various countries including Sweden, Germany, Malaysia, China, Singapore, France and Belgium. The company has three warehouses in Howrah, West Bengal. Recent Results The company reported a net profit of INR0.69 crore (provisional) in 2011-12 on an operating income of INR62.14 crore (provisional), as compared to a net profit of INR0.51 crore on an operating income of INR52.05 crore during 2010-11. PRIYANKA GEMS: ICRA Reaffirms 'B+' Rating on INR54.41cr Loan ------------------------------------------------------------ ICRA has reaffirmed the long term rating of '[ICRA]B+' to the INR54.41 crore fund based limits of Priyanka Gems. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund Based Limits 54.41 [ICRA]B+ reaffirmed The rating reaffirmation takes into account the stretched financial position of the firm as characterized by decline in sales, low profitability levels and high working capital intensity due to high debtor and inventory days. Along with raw material price fluctuation risk, the margins of the firm are also exposed to volatility in foreign exchange rates on account of export dominated sales profile; however the risk is partially mitigated through natural hedge provided by import of roughs as well as forward covers taken by the firm. Further, fragmented nature of the industry and intense competitive pressures from organized and unorganized players limits the bargaining power of the firm. ICRA however takes into account the long experience of the promoters in the cut and polished diamond business along with the comfortable capital structure of the firm. Being a partnership concern, the capital structure of the firm would however remain exposed to the quantum of capital additions and withdrawals by the partners. Formed in 1978, Priyanka Gems is a partnership firm engaged in the import of rough diamonds and export of Cut and Polished Diamonds (CPDs). PG has a processing unit at Surat & sales office in Opera House, Mumbai. Recent Results PG recorded a net profit of INR0.80 crore on an operating income of INR142.49 crore for the year ending March 31, 2012 (provisional). RUCHI GLOBAL: ICRA Assigns '[ICRA]BB' Rating to INR9cr Loan ----------------------------------------------------------- ICRA has reaffirmed the rating assigned for INR9.0 crore fund- based limits of Ruchi Global Limited at '[ICRA]BB'. The rating carries a stable outlook. ICRA has also reaffirmed the rating assigned to INR334.44 crore fund based and non-fund-based limits (enhanced from INR270.4 crore) of RGL at '[ICRA]A4'. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund Based Limits 9 [ICRA]BB(Stable) (Reaffirmed) Fund and Non-Fund 334.44 [ICRA]A4 (Reaffirmed) Based Limits The ratings reaffirmation take into account the long track record of promoters in the steel and agricultural commodities' trading business, the company's diversified client base and product portfolio and its association with a strong promoter group. The ratings also factor in the improvement in RGL's capital structure with the reduction in overall debt levels with the liquidation of large portion of its inventory. The ratings are however constrained by decline in RGL's profitability in FY12 on account of rupee depreciation as the company imports majority of the steel products and also due to lower income from its investment portfolio.. ICRA's ratings continue to factor in RGL's low profitability, intensely competitive nature of the business and vulnerability of the company's cash flows to fluctuations in commodity prices, and exchange rates. Going forward, the ability of the company to improve its profitability and maintain it's the debt protection indicators will be the key rating sensitive factors Established in 1996, Ruchi Global Limited is engaged in the business of trading in steel items and agricultural commodities. RGL is a trading arm of Ruchi Group and is a closely held company promoted by Mr. Kailash Shahra and his family members. RGL is primarily involved in the trading of steel, edible oil, soya products, soyabean, wheat, pulses, chemicals and other agro and non-agro commodities. Ruchi Group is a reputed industrial conglomerate in India with interests in businesses ranging from steel to food products. The Group is actively involved in soya processing, edible oils, dairy products, cold rolled sheets and coils, galvanized sheets and coils and a host of other activities. Recent Results As per the provisional financial statements of 2011-12, Ruchi Global Limited reported operating income of INR1055.02 crore and net profit of INR0.85 crore. SHREE AMBE: ICRA Assigns 'BB+' Rating to INR7.15cr Loans -------------------------------------------------------- ICRA has assigned '[ICRA]BB+' rating to the INR7.00 crore existing long term fund based facilities and INR0.15 crore proposed long term fund based facilities of Shree Ambe Food Products Private Limited. ICRA has also assigned '[ICRA]A4+' rating to the INR1.00 crore non fund based facilities of the Company. The outlook on the long term rating is stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Long Term Fund Based 7.00 [ICRA]BB+ (Stable) Limits assigned Long Term Fund Based 0.15 [ICRA]BB+ (Stable) Limits (proposed) assigned Short Term Non Fund 1.00 [ICRA]A4+ assigned Based Limits The assigned ratings take into account the promoters' long standing experience in the wheat milling and processing industry, diversified client base and established relationship with institutional buyers and stable demand outlook with wheat based products being an important part of the staple Indian diet. The ratings also take into account SAFPPL's relatively moderate capital structure (aided by equity infusion of INR1.0 crore by the promoters into the business over the last two years) and funding support from the much larger Group entity Ambe Agro Industries Limited, engaged in similar business. The ratings are, however, constrained by the Company's moderate scale of operations restricting the operational and financial flexibility, low value addition and highly fragmented structure of industry resulting in thin operating margins, susceptibility to adverse government regulations in terms of Minimum Support Price for purchasing raw material (wheat) and vulnerability of raw material availability to the agro-climatic conditions. In addition, the Company's cash accruals also remain low resulting in weak debt protection metrics. Incorporated in 2005, Shree Ambe Food Products Private Limited is engaged in the manufacturing of flour milling products - whole wheat atta, maida, resultant atta, suji and bran from wheat. The Company's milling unit, located at Hoskote (Bangalore) has a grinding capacity of 33,000 tonnes per annum. The company has been promoted by Mr. Bimal Kant Gupta and Mr. Nneeraj Agrawal. Besides SAFPPL, the promoters also own another company named Ambe Agro Industries Limited, which has two flour milling units in the state of Bihar with a total grinding capacity of 350 tonnes per day. Ambe Agro Industries Limited, which was incorporated in 1995, reported an operating income of INR74.0 crore with a net profit of INR0.4 crore for 2010-11. Recent Results As per the provisional results, the Company reported a profit before tax and depreciation of INR0.6 crore on operating income of INR47.6 crore during 2011-12 as against net profit (profit after tax) of INR0.2 crore on operating income of INR43.3 crore during 2010-2011. Also, as per the provisional results, the Company reported profit before tax and depreciation of INR0.6 crore on operating income of INR14.2 crore during the first quarter of 2012-13. ================= I N D O N E S I A ================= TELKOM: Unit's Bankruptcy Stirs Fears of Legal Abuses ----------------------------------------------------- Reuters reports that a court ruling that Indonesia's biggest mobile phone operator, PT Telekomunikasi Indonesia, is bankrupt, after not paying a disputed debt of just half a million dollars, has revived concerns over flawed laws that invite abuse and can trip up even highly profitable companies in Southeast Asia's largest economy. Reuters says analysts and shareholders have brushed the decision aside as one of the quirks of the country's legal system, saying it is almost inevitable that it will be overturned when Telkomsel appeals to the country's supreme court. According to the report, the case has fuelled concerns among lawyers, however, that the bankruptcy law is open to abuses -- such as forcing settlements to disputes that should be dealt with elsewhere in the legal system -- and poses unnecessary risks for enterprises. "It's not a prudent and fair judgment. Every company has a loan or debt that will sometimes be disputed," Reuters quotes Harjon Sinaga, a partner at Lubis Ganie Surowidjojo law firm in Jakarta, as saying. Reuters reports that Telkomsel, a subsidiary of PT Telekomunikasi Indonesia (Telkom), was taken to court by a prepay phone voucher distributor, PT Prima Jaya, which alleged in a petition for a bankruptcy declaration that the telecom giant still owed it IDR5.3 billion (US$555,700). Reuters relates that Jakarta Commercial Court accepted the petition and declared Telkomsel bankrupt on Sept. 14, despite the company posting a first-half profit this year of US$770 million. Under Indonesian law, Reuters notes, a company can be declared bankrupt if it can be shown to have at least two creditors and the debt owed to one of them is due and payable. The strength of the balance sheet is irrelevant. Many investors were sanguine about the ruling, viewing a brief dip in parent company Telkom's share price after the declaration as a good chance to buy into the stock, Reuters adds. The Jakarta Globe said that Telkomsel and Prima Jaya established a partnership on June 1, 2011, for a period through June 2013, in which Telkomsel agreed to provide vouchers and SIM cards with a special sports theme to Prima Jaya. But in June of this year, a dispute arose when Telkomsel terminated the contract because it claimed Prima Jaya had failed to meet agreed-upon conditions. Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk -- http://www.telkom-indonesia.com/-- provides local and long distance telephone service in Indonesia. Known as Telkom, the company also offers fixed wireless service, leased lines, and data transport through affiliates. ========= J A P A N ========= GK MLOX3: Fitch Affirms Junk Rating on JPY1.78-Bil. Class D Notes ----------------------------------------------------------------- Fitch Ratings has upgraded GK MLOX3 class B notes due June 2015 and affirmed the rest. The transaction is a Japanese multi- borrower type CMBS securitisation. The rating actions are as follows: -- JPY1.4bn* Class B notes upgraded to 'Asf'' from 'BBB-sf''; Outlook Stable -- JPY2.6bn* Class C notes affirmed at 'Bsf''; Outlook Stable -- JPY1.78bn* Class D notes affirmed at 'CCsf''; Recovery Estimate revised to 35% from 45% *as of Sept. 20, 2012 The upgrade of the class B notes reflects improved credit enhancement following the substantial principal repayment of the underlying loans. Since the previous rating action in September 2011, two out of the then three remaining underlying loans were repaid or recovered in full, and four of the 13 properties backing the remaining defaulted loan have been sold. All of these contributed to a substantial repayment of the transaction, with the class A fully redeemed in August 2012. Fitch has revised downwards its net cash flow estimates for four out of nine remaining collateral properties, reflecting the collateral properties' recent weaker-than-expected performance. However, this has been more than offset by the progress of the repayment so far. The class C notes also benefited moderately from the repayment of the underlying loans, leading to today's affirmation of this class. Fitch assigned ratings to this transaction in September 2007. The transaction was initially a securitisation of five loans backed by 25 property trust beneficiary interests. It is currently backed by one defaulted loan, which in turn is backed by nine properties. RENESAS ELECTRONICS: Japan Fund May Counter KKR Offer ----------------------------------------------------- Bloomberg News reports that Japanese state-backed fund may join two of the nation's largest manufacturers in a bid for the unprofitable chipmaker, Renesas Electronics Corp., countering an offer from KKR & Co. Japanese companies including Toyota Motor Corp. and Panasonic Corp. may join with Innovation Network Corp. of Japan to invest more than JPY100 billion ($1.3 billion) for a majority stake in Renesas, a government official told Bloomberg. The plan for the Apple Inc. supplier was reported by the Nikkei newspaper Sept. 22, Bloomberg says. Bloomberg relates that an executive of the investment fund said Sept. 22 that Innovation Network may offer financial support to Renesas. Renesas stock has declined 29% this year, Bloomberg notes. KKR, a New York-based private-equity firm, offered about JPY100 billion to banks and the three main shareholders NEC Corp. (6701), Hitachi Ltd. (6501) and Mitsubishi Electric Corp. (6503) for control of Renesas, a person with knowledge of the matter said last month, Bloomberg adds. Based in Tokyo, Japan, Renesas Electronics Corp. -- http://am.renesas.com/-- manufactures semiconductor systems for mobile phones and automotive applications. Renesas, which has been unprofitable since it was established in 2010, last month announced a restructuring plan which included a reduction of about 5,000 workers, or 12% of its workforce, in a bid to turn around its bottom line. For the fiscal year that ended March 31, 2012, the chip maker reported a net loss of JPY62.60 billion and revenue of JPY883.11 billion. In the previous fiscal year when the company was created, it reported a net loss of JPY115.02 billion, The Wall Street Journal reported. * JAPAN: Moody's Sees Weak Prospects for Real Estate Sector ----------------------------------------------------------- Moody's Japan K.K. says the credit worthiness of Japanese real estate operating companies and real estate investment trusts (J- REITs), as well as of CMBS deals, will remain weak in the medium term, because cash flows from office buildings, which make up the majority of their portfolios, will continue to decline. In a new report titled, "Fundamentals of Japan's Real Estate Sector," Moody's says the demand for office buildings in Tokyo will remain lukewarm, owing to anemic economic growth, exacerbated by oversupply. The latter will result from a build-up in inventory in 2012. In the non-Tokyo office market, vacancy rates have been persistently high as a result of job cuts in manufacturing industries. Therefore, rents are under pressure. Still, Moody's expects the supply of new space to be stable in Sapporo, Nagoya and Fukuoka. Given the recent stability in cap rates, and the rise in occupancy rates after a large drop in 2009-2010, the unrealized losses of J- REITs have gradually decreased to around zero. However, Moody's is concerned that appraisal values can exceed actually sales prices, leading to mark-down risk for balance sheets. * JAPAN: Moody's Says China Dispute Has Negative Impact on Cos. --------------------------------------------------------------- Moody's Japan K.K. says that anti-Japanese demonstrations in China -- triggered by a dispute between the two countries over ownership of a group of islands in the East China Sea -- are likely to have a short-term negative impact on selected Japanese companies operating on the Mainland, but the longer-term effect is harder to predict and likely to be of varying degrees. The greatest impact to date has been -- as the media has widely reported -- a sharp decline in sales of Japanese autos and consumer electronics in China. In addition, Japanese companies have also closed many of their factories in China for a few days at the suggestion of the Chinese authorities, but Moody's considers the lost production will be limited and recoverable. Of the two sectors most directly effected, the auto sector is better positioned to sustain short-term declines in sales because with the exception of Europe, auto sales have seen strong global performance. Among Japanese auto companies, Nissan Motor Co Ltd (A3, stable) has the highest exposure to China, commanding a market share of about 7% or 1.24 million units sold in 2011. Toyota Motor Corp (Aa3, Negative) has a slightly lower share with sales of 801,000 units. The Japanese consumer electronics industry, currently undergoing a restructuring, is less well positioned to absorb declines in sales. The three majors -- Panasonic Corporation (Baa1, stable), Sony Corporation (Baa1, review for downgrade) and Sharp Corporation (Not Prime) -- are more exposed to sales declines in China. Based on the percentages of their sales in China in FYE3/2012, Sharp is the most exposed (19.7% of consolidated sales), then Panasonic (13.3%), and finally Sony (7.6%). Generally, Moody's believes that insured and uninsured losses because of the protests are expected to be limited. Most normal insurance contracts exclude coverage of damage due to rioting, but ultimately treatment will be based on what customers and insurers had previously agreed. Broadly, Moody's believes the short-term impact of the current unrest will be limited. However, over the longer term, the effect of rising anti-Japanese sentiment on the Mainland on Japanese businesses is difficult to determine. The possible implications -- in an extreme and unanticipated scenario -- could include the loss of access to a significant and growing market for Japanese manufactured goods, or a reduction in the ability of Japanese manufacturers to locate facilities in China. The disputed islands are known in Japan as the Senkaku Islands and as the Diaoyu Islands in China. =============== M A L A Y S I A =============== RHB BANK: Moody's Assigns 'D' BFSR; Outlook Stable -------------------------------------------------- Moody's Investors Service has assigned an A3 rating to RHB Bank Berhad's five-year USD-denominated senior unsecured fixed-rate notes. The rating outlook is stable. The other ratings of RHB Bank Berhad are: -- D on its bank financial strength rating (BFSR), translates to a standalone credit assessment of ba2 -- A3/P-1 on its long-term/short-term foreign-currency deposits -- (P)A3/(P)P-1 on its foreign-currency senior unsecured Medium term Note (MTN) programme The outlook on RHB Bank Berhad's BFSR is positive. All its other ratings are on a stable outlook. Ratings Rationale The USD-denominated notes will be issued pursuant to RHB Bank Berhad's USD500 million Euro MTN programme for issuance of senior debt instruments. This issuance will be a drawdown subsequent to the issuance of USD300 million senior notes on 11 May 2012 from the Euro MTN programme. The notes represent direct, senior, unsubordinated and unsecured obligations of RHB Bank Berhad. As such, they will rank pari passu with the bank's unsecured and unsubordinated obligations. The rating was assigned on the condition that no material changes are made to the draft terms and conditions of the notes reviewed prior to the launch of the issuance. The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology published in June 2012. RHB Bank Berhad is headquartered in Kuala Lumpur, and reported total assets of MYR151 billion (approximately USD49 billion) at end-June 2012. ==================== N E W Z E A L A N D ==================== BROADLANDS FINANCE: S&P Gives 'CCC/C' Issuer Credit Ratings ----------------------------------------------------------- Standard & Poor's Rating Services assigned its 'CCC/C' issuer credit ratings to New Zealand finance company Broadlands Finance Ltd. The rating outlook on BFL is negative. "The rating reflects our view that BFL's funding and liquidity position is vulnerable, and that its loan portfolio is high-risk in nature. Withdrawing from the debenture market in October 2011 after a period of weakened investor investment and reinvestment experience, the company has recently embarked on progressive efforts to re-enter the debenture funding market in the next few months, via the issuance of a new debenture prospectus. This decision was underpinned by BFL's expectation that investors will have an increased appetite for debenture securities at a time when the yields on other retail deposit products are low, and after the asset-quality and liquidity fall-out in the finance company sector has abated," S&P said. "Additionally, BFL has decided against actively seeking new funding from a bank or the private investor market, as BFL has found the availability of this funding to be limited and high- cost. On this basis, we consider that although there is some prospect that BFL may be successful in re-establishing a debenture funding capability, there remains significant uncertainty around the timing, level, and stability of funding that might be secured," S&P said. "The negative rating outlook reflects our view that BFL's liquidity profile is vulnerable over the next six-to-12 months," said credit analyst Harry Hu. "Currently BFL is reliant on cash receipts from existing loans to meet maturing debenture obligations. This reliance will be most notable over the next six months as BFL seeks to pursue higher loan growth, which itself is reliant on BFL's ability to mobilise new funding. A delay or lack of success in securing new external funding by the end of calendar 2012 would escalate downward rating pressure and raise the prospect that the business could be wound down by the current shareholder. The rating could also be lowered if BFL were to experience deterioration in its asset-quality experience to the extent that it weakens its ability to meet its liquidity needs beyond a six-month horizon." "Stabilisation of the rating or upward rating prospects are not expected until after BFL has demonstrated an ability to secure new, stable, funding to support its ability to grow its business base to a level whereby it becomes profitable and supportive to the prospects of ongoing strong support from its shareholders into the long term," S&P said. LDC FINANCE: High Court Appoints Interim Liquidators ---------------------------------------------------- Blair Cunningham at NBR Online reports that LDC Finance has been placed into liquidation. NBR relates that creditor Janet Wilson applied last month to have the company liquidated. The company has been in receivership since 2007, when PwC receivers Malcolm Hollis and John Fisk were appointed, the report notes. In Wellington High Court on Monday, NBR discloses, Associate Judge John Matthews placed LDC Finance into liquidation and appointed Iain Shephard and Heath Gair from Shephard Dunphy as liquidators. According to the report, the liquidators were appointed interim liquidators under court-ordered urgency after Messrs. Hollis and Fisk announced late in July they would be stepping down as receivers, citing conflict of interest issues. On July 26, they sent a note to investors advising of the change arising from court action between LDC Finance and associated company Finance and Investments (F&I), NBR recounts. NBR relates that the court action related to a series of dealings between the two companies in 2006-07 which saw good F&I loans swapped for worthless LDC shares. In May, the report says Justice John Fogarty ruled the swaps should not have been given approval and ordered more than NZ$9 million be returned to those investors. PwC was holding the money at the time, NBR relays. F&I investors used the judgment to launch a legal claim against PwC over advice given to LDC directors, the report notes. About LDC Finance LDC Finance Ltd, a New Zealand finance company, was established in 2004 to take over LDC Investments, which breached securities law after it raised money without a registered prospectus and without a trustee. As reported by the Troubled Company Reporter-Asia Pacific on Sept. 4, 2007, LDC Finance went into receivership for not being able to get new funds and maintain existing investments. Perpetual Trust Limited, trustee for the secured debenture stock and deposits issued by LDC Finance appointed PricewaterhouseCoopers partners Malcolm Hollis and John Fisk as Receivers. In July 2012, PricewaterhouseCoopers stood down as the company's receivers. Richard Simpson and David Ruscoe of Grant Thornton took over receivership of LDC, stuff.co.nz disclosed citing PwC's letter to investors. ================= S I N G A P O R E ================= AGV LTD: Court to Hear Wind-Up Petition Oct. 5 ---------------------------------------------- A petition to wind up the operations of AGV Ltd will be heard before the High Court of Singapore on Oct. 5, 2012, at 10:00 a.m. Tan Kian Guan and Lim Kiam Kiam filed the petition against the company on Sept. 13, 2012. The Petitioner's solicitors are: Messrs Lee & Lee 50 Raffles Place, #06-00 Singapore Land Tower Singapore 048623 CLARITY SYSTEMS: Creditors' Proofs of Debt Due Oct. 19 ------------------------------------------------------ Creditors of Clarity Systems (Asia Pacific) Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Oct. 19, 2012, to be included in the company's dividend distribution. The company's liquidators are: Andrew Grimmett Lim Loo Khoon 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 CLOUD 9: Creditors Get 100% Recovery on Claims ---------------------------------------------- Cloud 9 Lifestyle Pte Ltd will declare first and final dividend today, Sept. 25, 2012. The company will pay 100% for preferential and 4.1104 for ordinary claims. The company's liquidators are: Chia Soo Hien Leow Quek Shiong c/o BDO LLP 21 Merchant Road #05-01 Royal Merukh S.E.A. Building Singapore 058267 ENCENTUATE PTE: Creditors' Proofs of Debt Due Oct. 19 ----------------------------------------------------- Creditors of Encentuate Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Oct. 19, 2012, to be included in the company's dividend distribution. The company's liquidators are: Andrew Grimmett Lim Loo Khoon 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 EZIHOME PTE: Court to Hear Wind-Up Petition Oct. 5 -------------------------------------------------- A petition to wind up the operations of Ezihome Pte Ltd will be heard before the High Court of Singapore on Oct. 5, 2012, at 10:00 a.m. Malayan Banking Berhad filed the petition against the company on Sept. 13, 2012. The Petitioner's solicitors are: Rajah & Tann LLP No. 9 Battery Road #25-01 Straits Trading Building Singapore 049910 ================ S R I L A N K A ================ PEOPLE'S LEASING: Fitch Assigns Issuer Default Rating at Low-B -------------------------------------------------------------- Fitch Ratings Lanka has assigned People's Leasing Company PLC's (PLC, 'AA-(lka)'/Stable) proposed commercial paper issue of up to LKR500m a National Short-Term 'F1+(lka)' rating. The proposed notes will have a tenor of one year, and will be used to finance the company's working capital requirements. The rating reflects the potential extraordinary support from the government ('BB-'/Stable) through PLC's state-owned parent, People's Bank (PB; 'AA+(lka)'/Stable), in times of distress. PB owns 75% of PLC. This is based on the strong linkages between PLC and PB, the subsidiary's strategic importance to PB, as well as the consequent reputation risk to the government if PLC were to default on its financial obligations. PB's capacity to support PLC is derived from the financial capacity and propensity of the government of Sri Lanka, given the bank's increasing role in Sri Lanka's post-war economic development and its high systemic importance (18% of system assets and deposits in 2011). PLC is the largest non-bank financial institution in Sri Lanka by advances, with a 21% share of the market at end-2011. At end-June 2012, its total assets and post-tax profits stood at LKR96bn and LKR720m respectively. PLC's ratings: -- Long-Term Foreign Currency Issuer Default Rating: 'B+'; Outlook Stable -- Long-Term Local Currency Issuer Default Rating: 'B+'; Outlook Stable -- National Long-term Rating: 'AA-(lka)'; Outlook Stable -- LKR1.48bn outstanding senior unsecured redeemable debentures: 'AA-(lka)' -- LKR1.5bn outstanding rated commercial paper: 'F1+(lka)' -- Proposed commercial paper of up to LKR500m: 'F1+(lka)' =============== X X X X X X X X =============== * BOND PRICING: For the Week Sept. 17 to Sept. 21, 2012 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- COM BK AUSTRALIA 1.50 04/19/22 AUD 70.32 EXPORT FIN & INS 0.50 06/15/20 NZD 73.29 MIDWEST VANADIUM 11.50 02/15/18 USD 58.91 MIDWEST VANADIUM 11.50 02/15/18 USD 59.00 MIRABELA NICKEL 8.75 04/15/18 USD 75.00 MIRABELA NICKEL 8.75 04/15/18 USD 72.38 NEW S WALES TREA 0.50 09/14/22 AUD 68.47 NEW S WALES TREA 0.50 10/07/22 AUD 68.28 NEW S WALES TREA 0.50 10/28/22 AUD 68.11 NEW S WALES TREA 0.50 11/18/22 AUD 68.78 NEW S WALES TREA 0.50 12/16/22 AUD 68.57 NEW S WALES TREA 0.50 02/02/23 AUD 68.21 NEW S WALES TREA 0.50 03/30/23 AUD 67.80 TREAS CORP VICT 0.50 08/25/22 AUD 68.86 TREAS CORP VICT 0.50 03/03/23 AUD 68.58 TREAS CORP VICT 0.50 11/12/30 AUD 50.59 CHINA ----- CHINA GOVT BOND 4.86 08/10/14 CNY 104.19 CHINA GOVT BOND 1.64 12/15/33 CNY 68.45 AKSH OPTIFIBRE 1.00 02/05/13 USD 67.56 JCT LTD 2.50 04/08/11 USD 20.00 JSL STAINLESS LT 0.50 12/24/19 USD 66.63 MASCON GLOBAL LT 2.00 12/28/12 USD 10.00 PRAKASH IND LTD 5.63 10/17/14 USD 68.51 PRAKASH IND LTD 5.25 04/30/15 USD 66.51 PYRAMID SAIMIRA 1.75 07/04/12 USD 1.00 REI AGRO 5.50 11/13/14 USD 68.33 REI AGRO 5.50 11/13/14 USD 68.33 SHIV-VANI OIL 5.00 08/17/15 USD 50.04 SUZLON ENERGY LT 5.00 04/13/16 USD 42.43 JAPAN ----- EBARA CORP 1.30 09/30/13 JPY 100.09 ELPIDA MEMORY 2.03 03/22/12 JPY 14.50 ELPIDA MEMORY 2.10 11/29/12 JPY 14.50 ELPIDA MEMORY 2.29 12/07/12 JPY 14.50 ELPIDA MEMORY 0.50 10/26/15 JPY 14.00 ELPIDA MEMORY 0.70 08/01/16 JPY 15.13 JPN EXP HLD/DEBT 0.50 09/17/38 JPY 63.19 JPN EXP HLD/DEBT 0.50 03/18/39 JPY 63.05 KADOKAWA HLDGS 1.00 12/18/14 JPY 105.64 SHARP CORP 1.42 03/19/14 JPY 54.13 SHARP CORP 0.85 09/16/14 JPY 51.63 SHARP CORP 1.14 09/16/16 JPY 44.25 SHARP CORP 2.07 03/19/19 JPY 41.25 SHARP CORP 1.60 09/13/19 JPY 41.13 SOFTBANK CORP 1.50 03/31/13 JPY 150.34 TOKYO ELEC POWER 2.35 09/29/28 JPY 67.88 TOKYO ELEC POWER 2.40 11/28/28 JPY 69.13 TOKYO ELEC POWER 2.21 02/27/29 JPY 67.88 TOKYO ELEC POWER 2.11 12/10/29 JPY 66.25 TOKYO ELEC POWER 1.96 07/29/30 JPY 64.63 TOKYO ELEC POWER 2.37 05/28/40 JPY 62.00 MALAYSIA -------- DUTALAND BHD 7.00 04/11/13 MYR 0.69 PHILIPPINES ----------- BAYAN TELECOMMUN 13.50 07/15/49 USD 20.50 BAYAN TELECOMMUN 13.50 07/15/49 USD 20.50 SINGAPORE --------- BAKRIE TELECOM 11.50 05/07/15 USD 58.00 BAKRIE TELECOM 11.50 05/07/15 USD 57.90 BLD INVESTMENT 8.63 03/23/15 USD 60.77 BLUE OCEAN 11.00 06/28/12 USD 37.75 BLUE OCEAN 11.00 06/28/12 USD 39.16 CAPITAMALLS ASIA 2.15 01/21/14 SGD 99.62 CAPITAMALLS ASIA 3.80 01/12/22 SGD 100.42 DAVOMAS INTL FIN 11.00 12/08/14 USD 28.63 DAVOMAS INTL FIN 11.00 12/08/14 USD 28.63 F&N TREASURY PTE 2.48 03/28/16 SGD 100.22 KOREA ----- CN 1ST ABS 8.00 02/27/15 KRW 33.15 CN 1ST ABS 8.30 11/27/15 KRW 34.48 EXP-IMP BK KOREA 0.50 08/10/16 BRL 71.94 EXP-IMP BK KOREA 0.50 09/28/16 BRL 71.41 EXP-IMP BK KOREA 0.50 10/27/16 BRL 70.90 EXP-IMP BK KOREA 0.50 11/28/16 BRL 70.34 EXP-IMP BK KOREA 0.50 12/22/16 BRL 70.17 EXP-IMP BK KOREA 0.50 10/23/17 TRY 71.54 EXP-IMP BK KOREA 0.50 11/21/17 BRL 64.77 EXP-IMP BK KOREA 0.50 12/22/17 BRL 64.04 EXP-IMP BK KOREA 0.50 12/22/17 TRY 70.78 GREAT KO 3RD ABS 10.00 12/29/14 KRW 30.66 GYEONGGI MUTUAL 8.50 08/29/14 KRW 86.23 HYUNDAI SWISS BK 8.50 10/02/13 KRW 93.69 HYUNDAI SWISS BK 8.50 07/15/14 KRW 87.81 HYUNDAI SWISS BK 7.90 07/23/15 KRW 77.37 KIBO GRE 1ST ABS 10.00 01/25/15 KRW 30.54 SINBO 4TH ABS 8.00 08/18/14 KRW 30.14 SINBO 7TH ABS 8.00 09/22/14 KRW 29.90 SINBO CO 3RD ABS 10.00 09/29/14 KRW 30.66 SRI LANKA --------- SRI LANKA GOVT 5.80 01/15/17 LKR 71.73 SRI LANKA GOVT 5.80 07/15/17 LKR 71.08 SRI LANKA GOVT 7.50 08/15/18 LKR 73.21 SRI LANKA GOVT 5.65 01/15/19 LKR 64.14 SRI LANKA GOVT 8.50 05/01/19 LKR 75.29 SRI LANKA GOVT 8.00 11/01/19 LKR 71.88 SRI LANKA GOVT 8.00 06/01/20 LKR 69.83 SRI LANKA GOVT 6.20 08/01/20 LKR 61.47 SRI LANKA GOVT 8.00 01/01/22 LKR 66.23 SRI LANKA GOVT 7.00 10/01/23 LKR 59.31 SRI LANKA GOVT 5.35 03/01/26 LKR 45.33 SRI LANKA GOVT 8.00 01/01/32 LKR 56.75 THAILAND -------- BANGKOK LAND 4.50 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, Psyche A. Castillon, 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 ***