/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/121025.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 Thursday, October 25, 2012, Vol. 15, No. 213 Headlines A U S T R A L I A CONQUEST AGRI: Three Subsidiaries Placed in Administration ZETTA FLORENCE: ATO Files Wind Up Petition Over Unpaid Tax * AUSTRALIA: ATO Sends Sunshine Coast Businesses to the Wall H O N G K O N G CHINA SCI-TECH PROPERTIES: Commences Wind-Up Proceedings CHINA-SOUTH SEA: Members' Final Meeting Set for Nov. 23 CHUNG CHIAT: Members' Final Meeting Set for Nov. 23 CONCORD CAMERA: Ira Lampert Steps Down as Liquidator CVIC CONTAINER: Commences Wind-Up Proceedings FIRST SHANGHAI: Commences Wind-Up Proceedings GRANDSBERG GINSENG: Members' Final Meeting Set for Nov. 19 HK JOCKEY: Creditors' Proofs of Debt Due Nov. 6 JUSTICE DEVELOPMENT: Members' Final Meeting Set for Nov. 23 MIGHTYMOUNT INVESTMENT: Commences Wind-Up Proceedings I N D I A ANUP INSULATION: CARE Places 'B-' Rating on INR0.52cr LT Loan AROMA AGROTECH: CARE Assigns 'BB-' Rating to INR58cr LT Loan CLAYRIS CERAMICS: CARE Gives 'CARE B' Rating to INR37cr LT Loan DOLPHIN OFFSHORE: CARE Cuts Rating on INR5.8cr Loan to 'BB+(SO)' HOTEL BABYLON: CARE Rates INR5.5cr LT Loan at 'CARE BB' KINGFISHER LTD: 17-Bank Consortium to Meet Soon KINGFISHER LTD: Employees Reject Salary Offer, Want Upfront Pay MODERN INSECTICIDES: CARE Assigns 'BB' Rating to INR17.70cr Loan M.S. DISTRIBUTORS: CARE Rates INR10.67cr LT Loan at 'CARE BB' N.S. ENGINEERING: CARE Assigns 'BB' Rating to INR24.4cr LT Loan NV INTERNATIONAL: CARE Rates INR170cr LT Loan at 'CARE BB-' RADHAMOHAN BUILDERS: CARE Ups Rating on INR13.96cr Loan to 'B-' RASOYA PROTEINS: CARE Puts 'BB+' Rating on INR254.13cr LT Loan SHAKAMBHARI ISPAT: CARE Lifts Rating on INR101.7cr Loan to 'BB-' SHREE NAKODA: CARE Assigns 'B' Rating to INR20cr LT Loan J A P A N * JAPAN: SME Failures More Than Doubled in First Half of 2012 N E W Z E A L A N D PEGASUS TOWN: Receivers Rule Out "Fire Sale" of Sections S I N G A P O R E INGRATE PTE: Creditors' Proofs of Debt Due Nov. 2 JACKLIE CONSTRUCTION: Creditors Get 1.61266% Recovery on Claims MATRIXONE ASIA: Creditors' Meetings Set for Nov. 5 R. S. HOTEL: Court to Hear Wind-Up Petition on Nov. 2 SENTAT TRADING: Court Enters Wind-Up Order V I E T N A M HOANG ANH: Fitch Withdraws 'B' Rating on Issuer Default Ratings * Fitch Says Major Banks Reflect Difficult Operating Conditions - - - - - ================= A U S T R A L I A ================= CONQUEST AGRI: Three Subsidiaries Placed in Administration ---------------------------------------------------------- SmartCompany reports that three subsidiaries of listed agricultural services provider Conquest Agri have been placed in administration, following a tumultuous year for the retail- focused agricultural company as it undergoes a major restructure. According to the report, the business, which supplies agricultural products to retail outlets and started trading on the ASX just last year, delivered a loss of AUD4 million last year and hoped to pursue growth through these subsidiaries -- particularly its pet project Conquest Crop Production. Conquest Crop Protection, Farmworks Merchandise Services, and Farmworks Australia Livestock have all been placed in administration, with Andrew Saker -- andrew.saker@fh.com.au -- and Martin Jones -- martin.jones@fh.com.au -- of Ferrier Hodgson appointed to the company, SmartCompany discloses. Conquest Agri is a specialist provider of rural products, wholesaling to retail outlets across the country. Its main business venture is its Conquest Crop Production line. ZETTA FLORENCE: ATO Files Wind Up Petition Over Unpaid Tax ---------------------------------------------------------- The Sydney Morning Herald's BusinessDay reports that Melbourne stationers Zetta Florence are at risk of going into liquidation after the tax office applied to wind up the company over unpaid debts of AUD190,127. The application was filed in the Federal Court in Melbourne on October 22 and will be heard on November 30, the report says. The Deputy Commissioner of Taxation is seeking orders that Zetta Florence be wound up and liquidators appointed. Owner of the Zetta Florence chain, Philip Knightley, declined to comment when contacted by BusinessDay. According to BusinessDay, the State Revenue Office made a similar winding up application of Zetta Florence in the Victorian Supreme Court in July this year. But the application was withdrawn the following month. BusinessDay, citing documents filed with the corporate regulator, discloses that Zetta Florence took out a facility worth up to AUD2 million with short-term financier Cash Resources Australia in April 2011. Zetta Florence has three stores in Melbourne in Fitzroy, Armadale and Chadstone. It sells high-end stationery supplies such as cards, writing paper, binders and photo albums, and archiving supplies. * AUSTRALIA: ATO Sends Sunshine Coast Businesses to the Wall ------------------------------------------------------------ Bill Hoffmann at Sunshine Coast Daily reports that the Australian Tax Office was the primary driver of insolvency on the Sunshine Coast, often ahead of the banks in its push to see businesses wound up and assets sold to satisfy debt. The report relates that Worrells Sunshine Coast partner Paul Noguera said that when the ATO agreed to repayment terms, the conditions were onerous. In those circumstances, a substantial upfront payment was often required with repayment of the balance over only a short term. "A lot can't manage that," the report quotes Mr. Noguera as saying. According to the report, the Federal Government this week signalled changes to its tax collection regime with businesses turning over AUD1 billion annually required to pay tax on a monthly basis. While the requirement will have little or no impact on the Sunshine Coast, a stiffening of its Directors Penalty Notices provisions may cause concern for many, the report notes. Accountant Ian Buscombe, the principal of bdk Buscombe certified practising accountants in Maroochydore, said directors of companies would be held personally liable if superannuation and group tax were not paid on time and were more than three months late, Sunshine Coast Daily reports. Mr. Buscombe said if the requirements for monthly tax payments were universal, that may actually help sharpen the businesses of smaller operators with poor cash flow management strategies, the report adds. ================ H O N G K O N G ================ CHINA SCI-TECH PROPERTIES: Commences Wind-Up Proceedings -------------------------------------------------------- Members of China Sci-Tech Properties Company Limited on Oct. 9, 2012, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Shom Chun Po Room 801, 8/F Wing Kwok Centre 182 Woosung Street Jordan, Hong Kong CHINA-SOUTH SEA: Members' Final Meeting Set for Nov. 23 ------------------------------------------------------- Members of The China-South Sea (Nominees) Services Limited will hold their final general meeting on Nov. 23, 2012, at 9:45 a.m., at 5th Floor, Jardine House, at 1 Connaught Place, Central, in Hong Kong. At the meeting, Tsui Kei Pang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CHUNG CHIAT: Members' Final Meeting Set for Nov. 23 --------------------------------------------------- Members of Chung Chiat Company Limited will hold their final general meeting on Nov. 23, 2012, at 9:30 a.m., at 5th Floor, Jardine House, at 1 Connaught Place, Central, in Hong Kong. At the meeting, Tsui Kei Pang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CONCORD CAMERA: Ira Lampert Steps Down as Liquidator ---------------------------------------------------- Ira Lampert stepped down as liquidator of Concord Camera HK Limited on Oct. 10, 2012. CVIC CONTAINER: Commences Wind-Up Proceedings --------------------------------------------- Members of CVIC Container Transportation (Dalian) Limited on Oct. 15, 2012, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Lau Cheuk Man Timothy Unit 9, 17/F Citicorp Centre 18 Whitfield Road Causeway Bay Hong Kong FIRST SHANGHAI: Commences Wind-Up Proceedings --------------------------------------------- Members of First Shanghai CVIC (HK) Food Industrial Limited on Oct. 15, 2012, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Lau Cheuk Man Timothy Unit 9, 17/F Citicorp Centre 18 Whitfield Road Causeway Bay Hong Kong GRANDSBERG GINSENG: Members' Final Meeting Set for Nov. 19 ---------------------------------------------------------- Members of Grandsberg Ginseng (H.K.) Limited will hold their final general meeting on Nov. 19, 2012, at 10:00 a.m., at 6/F, Greenwich Centre, 260 King's Road, North Point, in Hong Kong. At the meeting, Ng Kin Yung Tony, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HK JOCKEY: Creditors' Proofs of Debt Due Nov. 6 ----------------------------------------------- Creditors of Hong Kong Jockey Club Institute of Chinese Medicine Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Nov. 6, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 9, 2012. The company's liquidators are: Stephen Liu Yiu Keung Koo Chi Sum 62/F, One Island East 18 Westlands Road Island East, Hong Kong JUSTICE DEVELOPMENT: Members' Final Meeting Set for Nov. 23 ----------------------------------------------------------- Members of Justice Development Company Limited will hold their final meeting on Nov. 23, 2012, at 10:15 a.m., at 76/F, Two International Finance Centre, at 8 Finance Street, Central, in Hong Kong. At the meeting, Fung Kit Yee, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MIGHTYMOUNT INVESTMENT: Commences Wind-Up Proceedings ----------------------------------------------------- Members of Mightymount Investment Limited, on Oct. 19, 2012, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Lee King Yue 72-76/F, Two International Finance Centre 8 Finance Street Central, Hong Kong ========= I N D I A ========= ANUP INSULATION: CARE Places 'B-' Rating on INR0.52cr LT Loan ------------------------------------------------------------- CARE assigns 'CARE B-' and 'CARE A4' ratings to the bank facilities of Anup Insulation Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 0.52 CARE B- Assigned Long-/Short-term Bank 2.50 CARE B-/CARE A4 Facilities Assigned Short-term Bank Facilities 5.27 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Anup Insulation Private Limited are mainly constrained on account of its modest scale of operations and its weak financial risk profile marked by thin profit margins, stretched liquidity position and weak solvency position. The ratings are further constrained by AIPL's presence in a fragmented industry and elongated collection period. The above-mentioned constraints far offset the strength derived from the vast experience of the promoters in copper and aluminum wire manufacturing business. The ability of AIPL to increase its scale of operations with rationalization of debt levels, efficient working capital management and improvement in profitability margins are the key rating sensitivities. AIPL, based in Jaipur (Rajasthan), was originally constituted as a partnership firm in 1996 in the name of 'Anup Industries'. Subsequently, the firm got converted to a private limited company and the name was changed to 'Anup Insulation Private Limited' w.e.f. February 2007. AIPL is engaged in the manufacturing of bare and enameled copper and aluminum wires as well as copper and aluminum strips from its sole manufacturing unit located in Jaipur with an installed capacity of 750 Metric Tonne per Annum (MTPA) of copper wires and strips and 250 MTPA of Aluminum wires and strips as on March 31, 2012. The final products manufactured by AIPL finds its application in power transformer manufacturing industry. As per the audited results for FY11 (refers to the period April 1 to March 31), AIPL reported PAT of INR0.03 crore on a total operating income of INR8.48 crore as compared with PAT of INR0.05 crore on a total operating income of INR5.64 crore in FY10. As per the provisional result for FY12, AIPL has reported the total operating income of INR7.69 crore. AROMA AGROTECH: CARE Assigns 'BB-' Rating to INR58cr LT Loan ------------------------------------------------------------ CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank facilities of Aroma Agrotech Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 58 CARE BB- Assigned Short-term Bank Facilities 42 CARE A4 Assigned Rating Rationale The ratings assigned to the company are constrained by the weak financial risk profile characterized by high overall gearing and weak solvency ratios. The ratings also take into account its small scale and working capital intensive operations along with the inherent risks associated with the rice industry like fragmented nature, fluctuations in raw material prices and high degree of government control. The ratings, however, draw comfort from the experienced promoters and presence of the company in major paddy procurement area resulting in comfortable procurements. Going forward, the company's ability to improve its capital structure and increase its scale of operations with improvement in profitability margins amidst stiff competition. Mr. Anil Kumar Garg along with his three brothers and mother formed a partnership concern, Aroma Agrotech in FY04 for milling and processing of basmati rice in Gharaunda, Karnal. In FY09, they incorporated Aroma Agrotech Pvt Limited (Aroma) which acquired the business of Aroma Agrotech in April 2010. The company has a milling capacity of 9 tonnes per hour (TPH) and derives majority of its sales from exports to Middle East countries which are done in bulk packaging under private labels. During FY12 (refers to the period April 1 to March 31), the total income of Aroma stood at INR156.7 crore with a net profit of INR2.9 crore as against total income of INR130.8 crore and net profit of INR0.6 crore during FY11. CLAYRIS CERAMICS: CARE Gives 'CARE B' Rating to INR37cr LT Loan --------------------------------------------------------------- CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities of Clayris Ceramics Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 37.00 CARE B Assigned Short-term Bank Facilities 2.50 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Clayris Ceramics Private Limited are mainly constrained on account of the predominantly debt-funded project undertaken for manufacturing double-charged vitrified tiles and its presence in the highly fragmented and competitive ceramic tiles industry. The ratings are further constrained by its weak financial risk profile marked by leveraged capital structure and stressed liquidity position and susceptibility of its profitability to volatile raw material and natural gas prices. The ratings, however, favorably take into account the vast experience of the promoters in the ceramic tiles industry and presence of its manufacturing unit in the Morbi ceramic cluster. Improvement in the overall financial risk profile and successful implementation of the proposed project would be the key rating sensitivity. Incorporated in 2008, CCPL is engaged in the manufacturing of glazed ceramic tiles. CCPL was promoted by four promoters, namely, Mr. Divyesh Vilpara, Mr. Shreyas Patel, Mr. Bharat Vilpara and Mr Vinesh Patel who overlook the entire operations of the company. CCPL had an installed capacity of 36,000 Metric Tonnes Per Annum (MTPA) as on March 31, 2012 at its sole manufacturing facility located in the Morbi Ceramic cluster near Rajkot (Gujarat) and sells its products under the brand names 'Clayris' and 'Marbella'. CCPL undertakes job-work for H&R Johnson, a division of Prism Cement Limited and derived almost 40% of the revenue from it during FY10 (refers to the period April 1 to March 31) to FY12. The company is currently establishing a brown-field plant to manufacture vitrified tiles (double charged with Nano Technology). The total cost of the project is estimated to be INR61.50 crore, which will be funded through term loan of INR35 (already sanctioned by bank), equity infusion of INR19.50 crore and balance through unsecured loan from the promoters and relatives. During FY12, CCPL reported PAT of INR0.41 crore on total income of INR21.06 crore as compared with PAT of INR0.38 crore on total operating of INR11.87 crore during FY11. DOLPHIN OFFSHORE: CARE Cuts Rating on INR5.8cr Loan to 'BB+(SO)' ---------------------------------------------------------------- CARE revises ratings to the bank facilities of Dolphin Offshore Shipping Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 5.80 CARE BB+(SO) Revised from CARE BBB(SO) Bank Facilities 5.00 CARE BB+(SO)/ CARE A4+(SO) Revised from CARE BBB(SO)/ CARE A3 (SO) Rating Rationale The revision in the ratings takes into account the credit enhancement in the form of an unconditional, irrevocable corporate guarantee issued by the holding company, Dolphin Offshore Enterprises (India) Ltd., for the entire bank facilities of Dolphin Offshore Shipping Ltd. On invocation of the guarantee, the guarantor, DOEIL, has undertaken to pay on demand and not later than five business days from the date of notice, the full amount due by DOSL to the lenders. CARE has revised the rating assigned to the DOEIL's long-term and short-term bank facilities to 'CARE BB+' and 'CARE A4+', respectively. The revision in the ratings takes into account the continuous deterioration of DOEIL's financial performance in FY12 (refers to the period April 1 to March 31), high level of old receivables leading to a stretched operating cycle and expected financial support required by the subsidiaries. The ratings, however, also factor in the increase in order book position leading to revenue visibility for FY13. The ratings continue to be constrained by the reduced profitability, concentration of the business with a single entity and absence of fabrication facilities large enough to enable DOEIL to bid for major contracts. The ratings, however, continue to derive strength from DOEIL's experienced management team, long track record in the offshore service industry and its diverse range of services in the offshore segment. DOEIL's ability to procure sufficient orders amidst stiff competition from the international entities and to recover the funds blocked in the form of old debtors remains the key rating sensitivity. Dolphin Offshore Shipping Ltd. (formerly known as Procyon Offshore Services Ltd.), was incorporated in September 1990 and is presently engaged in acquiring and operating offshore vessels/tugs and caters to the requirements of port operations as well as offshore services. It owns three offshore vessels and four tugs. DOSL is a wholly-owned subsidiary of DOEIL. The company derives major revenues from its parent company DOEIL & group company DOEMPL (Dolphin Offshore Enterprises (Mauritius) Pvt. ltd.) (Approximately 55% of its revenue is contributed by the parent/group company). DOEIL is in the business of providing a complete range of offshore support services to the oil and gas industry. During FY11, the order book of DOEIL declined substantially due to stiff competition from international players. This consequently led to lower revenues for DOSL. In Q1FY13, DOSL had total revenue of INR9.77 crore with a PAT of INR3.19 crore as compared with the total revenue of INR25.45 crore and a PAT of INR 2.14 crore in FY12. HOTEL BABYLON: CARE Rates INR5.5cr LT Loan at 'CARE BB' ------------------------------------------------------- CARE assigns 'CARE BB' rating to the bank facility of Hotel Babylon Inn Pvt. Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term bank facility 5.50 'CARE BB' Assigned Rating Rationale The rating assigned to the bank facility of Hotel Babylon Inn Pvt. Ltd. is primarily constrained by the revenue concentration risk arising out of a single property, its short track record of operations, leveraged capital structure, stiff competition from established and upcoming branded hotels and inherent cyclicality associated with the hotel industry. The aforesaid rating is however, underpinned by longstanding experience of the promoters in hospitality business, locational advantage on account of the proximity to Raipur's business centre & industrial estate and well recognised brand name of 'Babylon' in Raipur city. Ability of HBIPL to improve its Average Room Rents (ARRs) and occupancy rate amid stiff competition would be the key rating sensitivities. HBIPL was incorporated in July, 2004 by Khanuja family of Raipur with an objective of starting, operating and maintaining hotel. The company initially incorporated as Hotel Hybrids Pvt. Ltd. which was subsequently in Nov, 2004 was rechristened to its present name. HBIPL at the end of the calendar year 2005, started setting up a mid segment hotel at Raipur, Chhattisgarh at an aggregate cost of INR30 crore, which was funded with a debt equity mix of 0.88:1. The hotel became operational in January, 2009. In FY11 (refers to the period from April 2010 to March 2011), HBIPL reported a PBILDT of INR4.5 crore and a PAT of INR0.3 crore on a total operating income of INR12.0 crore. Further, as per provisional results for FY12, the firm has achieved a total operating income of INR13.6 crore. KINGFISHER LTD: 17-Bank Consortium to Meet Soon ----------------------------------------------- The Hindu Business Line reports that the 17-bank consortium, which has an aggregate exposure of about INR7,000 crore to Kingfisher Airlines Ltd, will soon meet to decide the future course of action, a top banker has said. The Directorate General of Civil Aviation (DGCA), the report relates, earlier suspended the license of ailing Kingfisher Airlines. "Now that DGCA action is before us, we (bankers) will meet and take a call," the report quotes K.R. Kamath, Chairman and Managing Director of Punjab National Bank, as saying on the sidelines of an event in India Tuesday. "All the bankers will sit together and take a decision. The State Bank of India, which is the consortium leader, has to convene the meeting," Mr. Kamath, as cited by Hindu Business Line, said. After SBI, the report cites, Punjab National Bank has the next highest exposure to Kingfisher Airlines in the consortium. Hindu Business Line says bankers are quite hopeful that the employee issues will soon get resolved. They want to take up recovery proceedings as the last resort. About Kingfisher Airlines Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/-- formerly known as Deccan Aviation Ltd., serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. * * * As reported in the Troubled Company Reporter-Asia Pacific on Sept. 5, 2012, The Times of India said Kingfisher Airlines has now been given a reality check by its auditors in the company's annual report 2011-12. The company had current liabilities, including borrowings and trade payables of INR8,436 crore, against current assets of INR1,618.8 crore at the end of March 2012. According to TOI, the Vijay Mallya-promoted company has defaulted in repayment of loans to banks and financial institutions, for which several lenders have had to take a hit by setting aside more funds, with overdues estimated at nearly INR800 crore at the end of March 2012. Kingfisher, which has been unprofitable since it was created in 2005, accumulated losses of $1.9 billion between May 2005 and June 30 of this year, The Wall Street Journal reports citing Sydney-based consultant CAPA-Centre for Aviation. The airline also owes about $2.5 billion to lenders, suppliers, leasing companies and investors, the Journal adds. KINGFISHER LTD: Employees Reject Salary Offer, Want Upfront Pay -------------------------------------------------------------- IANS reports that striking employees of Kingfisher Airlines Ltd rejected the management's compensation offer yet again on Tuesday and said they may move court and seek intervention of Civil Aviation minister Ajit Singh. "At meetings held in Mumbai and New Delhi, the employees reached a broad agreement to reject the management offer. We will write a letter to them on the same," a senior flight engineer told IANS. "We have also taken legal advice on the issue, but we are awaiting more clarity on the matter before taking any further step." IANS notes the employees' meetings took place a day after talks failed in Mumbai to end the deadlock which started October 1 with the grounding of the airline and suspension of the carrier's flying license by the aviation regulator. According to the report, the engineer said the latest offer by the management did not meet the bare minimum of demands. "We are seeking payment of four months' salary from March onwards by October 26," the engineer told IANS. IANS recalls that the airline's Chief Executive, Sanjay Aggarwal, had sent a letter to the staff offering the March salary by Oct. 26 followed by April's pay by October 31 and May's compensation before Diwali. However, the employees have demanded an upfront payment of salaries, citing a lack of trust with the management, the report says. About Kingfisher Airlines Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/-- formerly known as Deccan Aviation Ltd., serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. * * * As reported in the Troubled Company Reporter-Asia Pacific on Sept. 5, 2012, The Times of India said Kingfisher Airlines has now been given a reality check by its auditors in the company's annual report 2011-12. The company had current liabilities, including borrowings and trade payables of INR8,436 crore, against current assets of INR1,618.8 crore at the end of March 2012. According to TOI, the Vijay Mallya-promoted company has defaulted in repayment of loans to banks and financial institutions, for which several lenders have had to take a hit by setting aside more funds, with overdues estimated at nearly INR800 crore at the end of March 2012. Kingfisher, which has been unprofitable since it was created in 2005, accumulated losses of $1.9 billion between May 2005 and June 30 of this year, The Wall Street Journal reports citing Sydney-based consultant CAPA-Centre for Aviation. The airline also owes about $2.5 billion to lenders, suppliers, leasing companies and investors, the Journal adds. MODERN INSECTICIDES: CARE Assigns 'BB' Rating to INR17.70cr Loan ---------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Modern Insecticides Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long/Short-term Bank 17.70 CARE BB/CARE A4 Facilities Assigned Rating Rationale The rating of Modern Insecticides Limited is constrained by weak financial risk profile characterized by low profitability margins and high gearing ratio, stressed liquidity position as indicated by high working capital utilization and MIL's low bargaining power with suppliers and customers. The rating, further, takes into account the vulnerability of MIL's sales & profitability to agro-climatic conditions and highly fragmented nature of industry leading to pricing pressure. However, the rating derives comfort from experienced promoters and long track record of the company, diverse product portfolio & customer base and product registrations obtained by MIL in 20 countries. Going forward, the ability of MIL to scale up its operations while maintaining profitability and managing its working capital requirements would be the key rating sensitivity. Incorporated in 1990 as a private limited company, Modern Insecticides Limited was later converted into public limited company on November 30, 1992. The company is engaged in the manufacturing of various kinds of pesticides formulations and crop saving material. MIL is promoted by Mr. Avtar Singh, Mr. Surinder Singh and Mr. Charanjit Singh, all having vast experience in the field of pesticides formulation. Furthermore, MIL has obtained registrations of its products in 20 countries as on March 31, 2012. MIL operates three manufacturing facilities, two located at Ludhiana (Punjab) and one located at Udhampur (J&K), with a combined capacity of 5000 Tonnes Per Annum (TPA). During FY11 (refers to the period from April 01 to March 31), MIL registered a total operating income of INR69.36 crore with a net profit of INR0.59 crore. As per the provisional FY12 results, MIL registered a total operating income of INR94.03 crore with a net profit of 0.76 crore. M.S. DISTRIBUTORS: CARE Rates INR10.67cr LT Loan at 'CARE BB' ------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of M.S. Distributors. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 10.67 CARE BB Assigned Short-term Bank Facilities 1.00 CARE A4 Assigned The ratings assigned by CARE are based on the capital deployed by the sole proprietor and the financial strength of the firm at present. The ratings may undergo change in case of withdrawal of capital or the unsecured loans brought in by the sole proprietor in addition to the financial performance and other relevant factors. Rating Rationale The ratings assigned to the bank facilities of M.S. Distributors are mainly constrained by its relatively small scale of operations, working-capital intensive nature of operations and moderately weak financial risk profile characterized by low profitability & cash accruals and high overall gearing. The ratings, however, derive strength from the experience of the proprietor in the field of pharmaceutical distribution, exclusive distributorship for reputed drug manufacturers for the Tamil Nadu region and the firm's established distribution network spread across the region. Going forward, the ability of the firm to grow its size of operations while prudently managing its working-capital requirements and improving its capital structure will be the key rating sensitivities. Additionally, any major capital expenditure in the future and its funding mix will also be a key rating sensitivity. MSD is a Chennai-based Sole Proprietorship firm engaged in the distribution of pharmaceutical products. It was promoted by Mr. Ashok Dugar, a Chennai-based entrepreneur. MSD was initially established as partnership firm in the year 2004 by Mr. Ajay Dugar (son of Mr. Ashok Dugar) and Mr. Surendar Srisrimal with profit sharing ratio of 60:40, respectively. Subsequently, during 2005, the firm got converted into a sole proprietorship with Mr. Ajay Dugar acquiring the entire stake in the business. During FY12 (refers to the period April 1 to March 31), MSD has registered a PAT of INR0.59 crore on a total income of INR37.65 crore. N.S. ENGINEERING: CARE Assigns 'BB' Rating to INR24.4cr LT Loan --------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of N.S. Engineering Projects Pvt. Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term bank facilities 24.40 'CARE BB' Assigned Short-term bank facilities 3.86 'CARE A4' Assigned Rating Rationale The ratings assigned to the bank facilities of N.S. Engineering Projects Pvt. Ltd. Are primarily constrained by its nascent stage of operations, project implementation risk involved with the setting up of galvanizing unit and inherent cyclicality of the steel industry. The ratings are further constrained due to its presence in a highly fragmented and competitive industry putting pressure on its profitability which is also susceptible to fluctuation in the raw material prices. The aforesaid constraints are partially offset by the longstanding experience of the promoters in the fabrication industry, its proximity to raw material sources enabling logistics advantage, diversified user segments and moderate order book position. Ability of the company to achieve envisaged scale of operations and profitability along with successful completion the ongoing project without any cost & time overrun would be the key rating sensitivities. N.S. Engineering Projects Pvt. Ltd. was incorporated in February, 2007 by Shri Manoj Kumar Kedia & Shri Anil Kumar Goel belonging to Kolkata for the purpose of setting up a fabrication & galvanizing plant. In August, 2012, the company started fabrication division and commenced manufacturing of steel engineering products for various industries like Railways, Telecom, Automotive ancillaries, Power plant, Chemical plant, etc. Its range of products include auxiliary reservoir, break beam, flap door, pipe for air brake system, round shaft chisels, head stock, slack adjusters, components used in manufacturing of wagons and coaches, etc. The manufacturing facility of the company is located at Domjur, Howrah with an installed capacity of 36,000 metric tonnes per annum (MTPA). The fabrication division was setup at a cost of INR31.98 crore at a debt equity mix of 0.52:1. The facility has quality systems certifications of ISO: 9001:2008. Currently, NSEPPL is in the process of setting up a galvanising unit within the existing premises at Domjur, Howrah. NV INTERNATIONAL: CARE Rates INR170cr LT Loan at 'CARE BB-' ----------------------------------------------------------- CARE assigns 'CARE BB-' rating to the bank facilities of NV International Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 170 CARE BB- Assigned Rating Rationale The rating of NV International Pvt Ltd is constrained by the project execution risk, the project being in the nascent stage, exposure to changes in the state policies regarding pricing and sales of country liquor, volatility in raw material prices and working capital intensive nature of operations. The above-mentioned rating weaknesses are partially offset by the experience of the promoters, management & group companies in related business, major approvals received from requisite authorities for setting up the distillery, strategic location with a large nearby market & abundant availability of grain and protective environment for existing players due to restrictive licensing acting as a high entry barrier. Going forward, timely execution of the project as per the planned schedule would be the key rating sensitivity. NVIPL, incorporated in June 1994, is setting up a grain-based distillery near Ambala (Haryana), with an installed capacity of 60 KL of Extra-Neutral alcohol (ENA) per day and 8,000 cases of country liquor per day. The company has plans to distribute country liquor in Haryana & Delhi and to sell ENA to other companies (which will use it as a base for the manufacturing of IMFL and country liquor). The company is a part of the NV group and is promoted by Mr. Ashok Jain and Mr. Sameer Goyal who have substantial relevant experience of around two decades in the industry. The project cost of INR257.79 crore is being financed at a debt equity mix of 1.94:1 (term debt of INR170 crore and the promoter's contribution of INR87.79 crore comprising equity & interest free unsecured loan). Till June 19, 2012, NVIPL has incurred INR23.10 crore, completely funded by the promoter's contribution (equity capital of INR23.01 crore and unsecured loans of INR0.09 crore). RADHAMOHAN BUILDERS: CARE Ups Rating on INR13.96cr Loan to 'B-' --------------------------------------------------------------- CARE revises/reaffirms the rating assigned to the bank facilities of Radhamohan Builders Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 13.96 CARE B- Revised from CARE C Short-term Bank Facilities 1.31 CARE A4 Reaffirmed Rating Rationale The revision in the long-term rating takes into account further improvement in the debt servicing track record of Radhamohan Builders Private Limited supported by regular infusion of unsecured loans from the promoters. The ratings, however, continued to remain constrained on account of RBPL's stressed liquidity position due to cash losses, highly leveraged capital structure and revenue dependence on its single hotel property in a highly competitive market of Jaipur. These constraints continue to offset the benefit derived from the vast experience of the promoters in diversified businesses and operations of RBPL managed by a reputed hotel chain, Golden Tulip. The ability of RBPL to increase the scale of operations through achievement of better occupancy levels and high average room rates resulting in improved cash accruals and consequent improvement in liquidity position is the key rating sensitivity. RBPL was incorporated in December 2004 by Mr. Surja Ram Meel to carry out hotel business at Jaipur, Rajasthan. RBPL started its commercial operations in November 2007. Mr. Surja Ram Meel, Chairman, holds 51% of the equity share capital in RBPL in his own name as well as through associate concerns and rest (49%) is held by Ager Hotels India Private Limited (AHIPL). RBPL operates a four-star hotel having 108 rooms, two restaurants and four banquet halls under the brand "Golden Tulip Jaipur" at Jaipur. It has franchise arrangement with the leading hotel chain "Golden Tulip", Netherlands for operations and marketing. It was the first hotel property developed in India by "Golden Tulip". At present there are 14 hotel properties of Golden Tulip hotels in India. During FY12 (refers to the period April 1 to March 31), RBPL reported a total income of INR11.07 crore (FY11: INR11.73 crore) with a net loss of INR2.56 crore (FY11: -1.96 crore). RASOYA PROTEINS: CARE Puts 'BB+' Rating on INR254.13cr LT Loan -------------------------------------------------------------- CARE assigns 'CARE BB+' and 'CAREA4' rating to the bank facilities of Rasoya Proteins Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank 254.13 CARE BB+ Assigned Facilities Short-term Bank 3.00 CARE A4 Assigned Facilities Rating Rationale The ratings are constrained by the susceptibility of Rasoya Proteins Limited to the raw material prices, seasonal availability of raw material leading to higher working capital intensity, limited geographical presence and exposure to the overseas subsidiary engaged in the trading activity. The ratings further take into account the risk associated with the implementation of the project and expected deterioration in the capital structure due to proposed capacity expansion. The ratings derive strength from the long track record of RPL in the soya industry, experienced promoters, strategic location of the manufacturing units and moderate financial risk profile characterized by growing sales, satisfactory capital structure and moderate debt coverage indicators. The ratings further underpinned by improving capacity utilization along with the venture into value-added products, which is expected to result in better contribution to the profitability. Going forward, the ability of RPL to sustain revenue growth and profitability in light of increasing competition, fluctuating raw materials prices and government policies would be the key rating sensitivities. Rasoya Proteins Limited, incorporated in 1992, is engaged in the business of soya solvent extraction and refining of soya oil. RPL operates two integrated solvent plants with one located at Wani District, Yavatmal (Maharashtra), and other one located at Malkapur District Buldhana (Maharashtra). The Wani plant has a 900 tonnes per day (TPD) of seed crushing capacity, 150 TPD of oil refining capacity and 7 TPD of liquid lecithin manufacturing capacity, while the Malkapur plant has a 1,000 TPD extraction facility, 150 TPD oil refining capacity and 7 TPD of liquid lecithin manufacturing capacity. RPL's product portfolio includes soya de-oiled cake (DOC), soya hi-pro DOC, soya crude oil, soya refined oil, lecithin, and wheat flour (wheat-flour accounts for 1% of revenue). The soy-based products are sold under the brand name "Rasoya", while wheat- based products are sold under the brand name "Mejwani". The company has a 10-megawatt (MW) captive thermal power plant at its Wani plant. The company has a power purchase agreement with Maharashtra State Electricity Distribution Co. Ltd. to sell the excess power. RPL International Trade FZE was incorporated in June 2011 in Sharjah, UAE as a wholly-owned subsidiary of RPL. SHAKAMBHARI ISPAT: CARE Lifts Rating on INR101.7cr Loan to 'BB-' ---------------------------------------------------------------- CARE revises the ratings assigned to bank facilities of Shakambhari Ispat & Power Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank 101.7 CARE BB- Revised from Facilities CARE B Short-term Bank 7.0 CARE A4 Facilities Reaffirmed Rating Rationale The revision in the long-term rating of Shakambhari Ispat & Power Ltd. takes into account the substantial improvement in the financial position reflected by significant improvement in net sales and profitability and solvency level and the successful completion of the ongoing capex project. The ratings, however, continued to be constrained by volatility in raw material and finished goods prices with lack of backward integration and intense competition coupled with cyclicality of the steel industry. The above constraints more than offset the benefits derived from the experience of the current promoters in steel industry and continuous infusion of funds by them, the presence of captive power plant and the improvement in operation of the company post take over by the new management. Effective management of the working capital, the ability to raise resources to manage the growth in the scale of operation and improve profitability in the wake of rising input prices and higher interest costs are the key rating sensitivities. Shakambhari Ispat & Power Ltd, formerly, Maa Chhinnamastika Steel & Power Pvt. Ltd., was incorporated in 2001 by Mr. Pradeep Bharadwaj of Durgapur. The company currently has sponge iron capacity of 90,000 MT, billets capacity of 97,500 MT and captive power plant of 12 MW. The plant was shut down in August 2010 due to financial problems and market volatility. In December 2010, the company was taken over by Mr. Deepak Agarwal, and subsequently, the name was changed to SIPL. The new management has undertaken an expansion project for increasing the capacity of billet plant by 25,000 MT and refurbishing of the plant which was completed in October 2011. In FY12 (refers to the period April 2011 to March 2012), SIPL earned PAT (after deferred tax) of INR5.5 crore on total income of INR302.4 crore. The company earned PBT of INR2 crore on net sales of INR66.2 crore in Q1FY13. SHREE NAKODA: CARE Assigns 'B' Rating to INR20cr LT Loan -------------------------------------------------------- CARE assigns 'CARE B' rating to the bank facilities of Shree Nakoda Industries Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term bank facilities 20.0 CARE B Assigned Rating Rationale SNIL's rating is mainly constrained by short track record of the company in trading of steel products, customer concentration risk, trading nature of business leading to low profitability margins, volatility in trading material prices, inadequate operating income to support interest payment, high gearing ratios and dependence on fortunes of steel industry. The ratings, however, draw support from experienced promoters and access to quality trading materials. Ability of the company to increase the scale of operations and profitability margins along with efficiently management of working capital requirement shall remain the key rating sensitivities. Shree Nakoda Industries Ltd., incorporated in December 1991, belongs to Raipur based Nakoda group, promoted by three brothers Shri Virendra Goel (52 years), Shri Ramesh Chandra Goel (60 years) and Shri Sanjay Goel (43 years). SNIL was initially incorporated as Goel Vanaspati Products Ltd. to carry out chemical business. In 2005, it discontinued chemical business, in view of low profitability, and ventured into trading of steel products (MS Bar rounds), iron ore and coal. Nakoda group comprises companies having major interest in manufacturing & trading of steel products, chemical, food grain, polymers and coal. As per the audited results of FY11 (refers to the period from Apr.1, 2010 to Mar. 31, 2011) SNIL reported a PBILDT and PAT of INR0.1 crore (INR0.1 crore in FY10) and INR0.2 crore (INR0.1 crore in FY10) respectively on a total income of INR112.7 crore (INR29.7 crore in FY10). Further, as per the provisional results of FY12 SNIL has achieved a PBILDT and PAT of INR2.9 crore and INR0.3 crore respectively on a total income of INR210.8 crore. ========= J A P A N ========= * JAPAN: SME Failures More Than Doubled in First Half of 2012 ------------------------------------------------------------- Kyodo News reports that private research firm Teikoku Databank Ltd said the number of small and midsize businesses that failed after receiving loan moratoriums under legislation in late 2009 more than doubled in the first half of fiscal 2012. Kyodo News notes regional banks and credit cooperatives provide such support to small cash-strapped firms, and if bad loans continue to rise after the legislation expires next March, it could hurt regional economies. Teikoku Databank discloses that a total of 184 companies that received loan moratoriums failed in the April-September period, up from 90 in the same period last year, Kyodo relays. The legislation, aimed at supporting smaller businesses squeezed by the credit crunch, has led financial institutions to grant moratoriums on loans worth around JPY80 trillion to 300,000 to 400,000 companies to date, Kyodo notes. ==================== N E W Z E A L A N D ==================== PEGASUS TOWN: Receivers Rule Out "Fire Sale" of Sections -------------------------------------------------------- Liz McDonald at stuff.co.nz reports that the receivers in control of the Pegasus Town development in North Canterbury are ramping up their marketing but have ruled out a "fire sale" of sections in the partly built town. "There is now some urgency in getting more sections to the market as quickly as possible," the report quotes Paul Armstrong, the company's development manager, as saying. He said the company had a new marketing plan and was concentrating on finishing sections so it would have enough to meet demand, stuff.co.nz relates. According to the report, receivers Grant Thornton said in their first report last week that they were continuing "land development activities, related subdivision work and sale of sections", as well as running the golf club. stuff.co.nz notes the receivers are not revealing the company's cashflow, the value of remaining unsold land at Pegasus or how much they hope to sell sections for, citing commercial sensitivity. The report says the receivers are handing the proceeds of section sales to lenders NZ Property Finance Partners, a consortium of Australian property giant Brookfield and investment banker Goldman Sachs. Others owed money include businesses that have provided goods and services, and Inland Revenue. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 21, 2012, Fairfax NZ News said Pegasus Town Ltd was placed in receivership. Simon Thorne has been appointed as receiver. Owner Bob Robertson said that difficulty refinancing a loan was behind the Pegasus trouble but there was no "contagion effect" for other projects, according to Fairfax NZ News. The receivership action was taken by New Zealand Property Finance Partners, an investment consortium owned by Australia's Brookfield group and investment banker Goldman Sachs. The consortium bought a loan over Pegasus Town from the Bank of Scotland last year, Fairfax NZ News related. Pegasus agreed to buy back the loan from Brookfield and Goldman Sachs, but could not get the finance, Fairfax NZ News disclosed. Pegasus Town has been designed for 7,000 residents in 2,500 homes. ================= S I N G A P O R E ================= INGRATE PTE: Creditors' Proofs of Debt Due Nov. 2 ------------------------------------------------- Creditors of Ingrate Pte Ltd are required to file their proofs of debt by Nov. 2, 2012, to be included in the company's dividend distribution. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 JACKLIE CONSTRUCTION: Creditors Get 1.61266% Recovery on Claims --------------------------------------------------------------- Jacklie Construction Pte Ltd declared the first and final preferential dividend on Oct. 11, 2012. The company paid 1.61266% to the received claims. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 MATRIXONE ASIA: Creditors' Meetings Set for Nov. 5 -------------------------------------------------- Matrixone Asia Pte Ltd, which is in provisional liquidation, will hold a meeting for its creditors on Nov. 5, 2012, at 10:00 a.m., at Ernst & Young Solutions LLP, One Raffles Quay, #18-00, in Singapore 048583. Agenda of the meeting include: a. to receive a statement of the position of the Company's affairs together with a list of creditors of the Company and the estimated amount of their claims prepared by the provisional liquidators appointed by the Board of Directors of the Company; b. to nominate and confirm Messrs Low Sok Lee Mona and Teo Chai Choo, both of 4 Shenton Way #04-01 SGX Centre 2, Singapore 068807 to be liquidators for the purpose of winding-up the affairs and distributing the assets of the abovenamed Company pursuant to the Companies Act; c. to appoint members of the committee of inspection of not more than 5 members, if thought fit; d. That pursuant to Section 320(3)(c) of the Companies Act, Cap. 50, the books and papers of the Company and of the liquidators that are relevant to the affairs of the Company at or subsequent to the commencement of the winding up of the Company be destroyed three (3) months after the dissolution of the Company; and e. discuss other business. R. S. HOTEL: Court to Hear Wind-Up Petition on Nov. 2 ----------------------------------------------------- A petition to wind up the operations of R. S. Hotel Services Pte Ltd will be heard before the High Court of Singapore on Nov. 2, 2012, at 10:00 a.m. Urvashi Sood filed the petition against the company on Sept. 28, 2012. The Petitioner's solicitors are: Khattarwong LLP 80 Raffles Place #25-01 UOB Plaza 1 Singapore 048624 SENTAT TRADING: Court Enters Wind-Up Order ------------------------------------------ The High Court of Singapore entered an order on Oct. 12, 2012, to wind up Sentat Trading (S) Pte Ltd's operations. Standard Chartered Bank filed the petition against the company. The company's liquidators are: Chia Soo Hien Leow Quek Shiong care of BDO LLP 21 Merchant Road, #05-01 Royal Merukh, S.E.A. Building Singapore 058267 ============= V I E T N A M ============= HOANG ANH: Fitch Withdraws 'B' Rating on Issuer Default Ratings --------------------------------------------------------------- Fitch Ratings has withdrawn Vietnam-based homebuilding company Hoang Anh Gia Lai JSC's Long-Term Foreign and Local Currency Issuer Default Ratings of 'B' respectively. The 'B-' rating on its USD75m notes due 2016 has also been withdrawn. The ratings remained on Rating Watch Negative (RWN), where they were placed on 31 May 2012, at withdrawal. Fitch has withdrawn the ratings due to insufficient information. Fitch will no longer provide ratings or analytical coverage of this issuer. * Fitch Says Major Banks Reflect Difficult Operating Conditions --------------------------------------------------------------- Fitch Ratings says in a new report that the major Vietnamese banks' ratings largely reflect difficult domestic operating conditions and other structural issues typically found in low- income emerging markets. The Outlook is Stable, reflecting that the banks' ratings in the single 'B' category are already among the lowest in Asia as well as the Vietnamese sovereign's Stable Outlook. Downside rating risks could arise if the operating environment becomes even more challenging than Fitch's current expectations and significantly threatens banks' solvency, and/or due to negative rating action on the sovereign. Fitch forecasts Vietnam's GDP growth at around 5% for 2012 and around 5.8% for 2013, lower than the 7% average over 2004-2011. Regulatory efforts at cutting interest rates and capping lending rates have done little to support investor sentiment, with credit growth of only 2% in January to September 2012. This together with governance issues, persistent global uncertainties and high levels of corporate leverage -- evident in the country's credit/GDP of 113% at end-2011 -- continues to weigh on the domestic economy. The banking system is vulnerable to macroeconomic shocks, with pressures already mounting on asset quality, earnings and capital of the major Vietnamese banks. Fitch continues to believe that reported non-performing loans (NPLs) are understated which, together with poor transparency, mean that banks' capitalisation would be much weaker than reported. Around half of banks' capital could be at risk, based on the central bank's public admission that the system-wide NPL ratio could be as high as 10%. Fitch believes the actual figure is higher and could weaken given the downside risks from a materially weaker economic environment. Structural issues, including deposit competition and fragile confidence, may keep loan/deposit ratios over or close to 100% for most major Vietnamese banks. There has been little perceptible progress on Vietnam's banking system reforms, such as banking sector consolidation and the establishment of an asset management company to acquire bad debt from banks. Local authorities have also mentioned concurrent reforms surrounding state-owned entities and investments in Vietnam, but meaningful progress here has proved elusive. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 240/629-3300. *** End of Transmission ***