text: TCRAP_Public/101124.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 Wednesday, November 24, 2010, Vol. 13, No. 232 HeadlinesA U S T R A L I AFOREST ENTERPRISES: Creditors Give More Time to Save FirmPAINAWAY AUSTRALIA: PBB Places Firm Up For SaleQUICK RESPONSE: In Administration; Business Up For SaleC H I N ACHINA RENEWABLE: Earns US$39,435 in September 30 QuarterMASTER SILICON: Earns US$481,000 in September 30 QuarterSHANGHAI ZENDAI: S&P Affirms 'B' LT Corporate Credit RatingH O N G K O N GBAOSHINN CORPORATION: Earns US$17,173 in September 30 QuarterDOTEX COMPANY: Court Enters Wind-Up OrderDRANSFIELD HOLDINGS: First Meetings Slated for November 30EMPIRE ONE: Court Enters Wind-Up OrderFAVOUR CENTURY: Court to Hear Wind-Up Petition on December 29GOBOWAY INVESTMENT: Court Enters Wind-Up OrderGOLD ACT: Court Enters Wind-Up OrderGRAND PASTURES: Court Enters Wind-Up OrderGREAT & RICH: Court Enters Wind-Up OrderINCLINE BEAUTY: Court Enters Wind-Up OrderINCORPORATED OWNERS: Court to Hear Wind-Up Petition on December 22INTERSMART INTERNATIONAL: Court Enters Wind-Up OrderJET WIN: Court Enters Wind-Up OrderKONG LAI: Court Enters Wind-Up OrderLABOUR BUILDINGS: Court Enters Wind-Up OrderLI FUNG: Court Enters Wind-Up OrderLUEN TAT: Keung and Wai Appointed as LiquidatorsMAN FOOK: Court Enters Wind-Up OrderMAN WAH: Court Enters Wind-Up OrderMARCHPOLE GROUP: Court Enters Wind-Up OrderMOKKERHATIN ENGINEERING: Court Enters Wind-Up OrderI N D I AAMIYA STEEL: CRISIL Reaffirms 'B' Rating on INR80.73MM Term LoanARUNODAY CONSTRUCTION: CRISIL Reaffirms 'D' Rating on Term LoanBORIAVI PEOPLE'S: RBI Cancels License Due to InsolvencyGOYAL ENERGY: Fitch Assigns 'B+' Ratings to Two Classes of LoansGROVER VINEYARDS: CRISIL Reaffirms 'D' Rating on INR55MM LT LoanINDO SHELL: ICRA to Withdraw "LBB" Rating on INR6cr Bank LoansMEDI PHARMA: CRISIL Reaffirms 'BB+' Rating on INR150MM Cash CreditMOHIT DIAMONDS: CRISIL Reaffirms 'P4+' Ratings on Various LoansPREET MACHINES: ICRA Assigns 'LBB' Rating to INR18cr Bank DebtQRS RETAIL: CRISIL Assigns 'BB' Rating to INR70 Million LT LoanRAIN CII: Fitch Puts 'B' Rating on Rating Watch NegativeRAHUL AGRO: ICRA Assigns 'LBB-' Rating to INR7cr Long Term LoanRATNACHINTAMANI METALLOYS: CRISIL Puts 'B' Rating on INR59MM LoanSAMOSARAN YARNS: CRISIL Assigns 'BB' Rating to INR137.5MM LT LoanSTERLING TECHNOTEX: CRISIL Assigns 'D' Rating to INR89.2MM LoanSUPREME COATED: CRISIL Assigns 'BB' Rating to INR114.5MM LT LoanVENUS LIFESTYLES: ICRA Assigns 'LBB+' Rating to INR30cr Bank DebtI N D O N E S I AMNC SKY: Moody's Assigns 'B2' Rating to US$165 Million NotesVALLAR PLC: Moody's Comments on Berau Coal and Bumi Rating ImpactJ A P A NCHELSEA TRUST: Moody's Downgrades Rating on Various CertificatesJAPAN AIRLINES: Creditors Back Rehabilitation PlanTITAN JAPAN: Fitch Downgrades Ratings on Four Classes of Notes* S&P Raises Ratings on Five Tranches From Five Japanese CDOsK O R E AHYUNDAI ENGINEERING: Hyundai Group's Funding Plan Not Under ReviewM A L A Y S I AGENERAL CORPORATION: Appoints Ernst & Young as LiquidatorHOVID BERHAD: 30th Annual General Meeting Set for December 15TRANSMILE GROUP: CCM Strikes Off Thailand Unit From RegisterN E W Z E A L A N DCAFE CUBA: Faces Liquidation Over NZ$300,000 Unpaid GSTP H I L I P P I N E SPHILIPPINE AIRLINES: Reports US$28.2 Mil. Net Income in Sept. Qtr.S I N G A P O R ETRANSFIELD ER: Seeks Protection From Suits in the U.S.T A I W A NAMERICAN INT'L: Rules Out Listing Nan Shan in Taiwan BourseT H A I A N DKRUNG THAI: Fitch Affirms Individual Rating at 'C/D'X X X X X X X X* Upcoming Meetings, Conferences and Seminars - - - - -=================A U S T R A L I A=================FOREST ENTERPRISES: Creditors Give More Time to Save Firm---------------------------------------------------------The creditors of Forest Enterprises Australia's plantation armhave given administrators more time to save the company, ABC Newsreports.As reported in the Troubled Company Reporter-Asia Pacific onApril 15, 2010, Forest Enterprises has been placed into voluntaryadministration. "FEA's financiers, namely the Commonwealth Bankof Australia Ltd and the Australia and New Zealand Banking GroupLtd have provided a formal notice, via their Security Trustee, toFEA and relevant FEA guarantor companies," the FEA said in astatement to the Australian Securities Exchange. "The Banks haveelected to take action, relying on the event of default previouslyadvised to the market and as a result, each of the charges grantedto the Security Trustee are enforceable and the previous floatingcharges over all of FEA's assets have converted into fixedcharges. "As a result, the Company is now required to deposit theproceeds of realization of any charged assets into a separate bankaccount for the sole benefit of the Banks.According to ABC News, Administrator Brian Silvia has toldplantation creditors there is a good prospect of restructuring theschemes to make them viable. ABC News relates that creditorsvoted for a "holding" arrangement, where administrators are givenmore time to work on the restructure plans.FEA's parent company is being managed by bank-appointed receivers,which sold the company's Bell Bay sawmill to Gunns last month, ABCNews adds. About FEAForest Enterprises Australia Limited (ASX:FEA) --http://www.fealtd.com/-- is a vertically integrated forestry and forest products company. It is engaged in the sale of woodlotinvestments through forestry investments; preparation,establishment and maintenance of plantations; timber harvesting;provision of finance to approved growers; sawmilling and woodchipping of forest produce, and direct exporting of forest produceto Asian markets. FEA operates in two divisions: forest products,which includes forest management services and the processing offorest products, including whole logs, woodchips and sawn timber,and forestry investment, which includes establishment andfinancing of managed woodlots and provision of related forestryservices, including the lease of investment land. Its whollyowned subsidiaries include FEA Plantations Limited, FEA Carbon PtyLtd, Tasmanian Plantation Pty Ltd, Tasmanian Plantation Unit Trustand FEA Timberlands Fund.Deloitte partners Tim Norman and Sal Algeri have been appointed asReceivers and Managers of Forest Enterprises Australia Limited andwholly owned subsidiary FEA Carbon Pty Ltd (FEAC). Messrs. Normanand Algeri have also been appointed as 'agents for the mortagee inpossession' of Tasmanian Plantations Pty Ltd, another wholly ownedproperty holding subsidiary of FEA.PAINAWAY AUSTRALIA: PBB Places Firm Up For Sale-----------------------------------------------Insolvency firm PPB has placed Painaway Australia Pty Ltd up forsale, after it was placed into liquidation on November 11, 2010,James Thomson at SmartCompany reports.Painaway Australia Pty Ltd -- http://www.painaway.com.au/-- manufactures health products, including variety of creams andsprays for the relief of arthritis pain.QUICK RESPONSE: In Administration; Business Up For Sale-------------------------------------------------------James Thomson at Smart Company reports that insolvency firmFerrier Hodgson announced Tuesday the sale of Quick ResponseFabrics Pty Ltd, which was placed into the hands of administratorson November 18.Quick Response Fabrics Pty Ltd -- http://www.qrf.com.au/-- is a privately owned Australian company located in Melbourne. Thecompany has annual revenue of AU$4 million and is one of thesuppliers of fabrics to garment manufacturers, fashion houses andmajor retailers in Australia, Europe and Asia Pacific.=========C H I N A=========CHINA RENEWABLE: Earns US$39,435 in September 30 Quarter--------------------------------------------------------China Renewable Energy Holdings, Inc., filed its quarterlyreport on Form 10-Q, reporting net income of $39,435 on$1.30 million of revenue for the three months ended September 30,2010, compared with a net loss of $83,794 on $89,197 of revenuefor the same period of 2009.The Company's balance sheet as of September 30, 2010, showed$1.36 million in total assets, $1.54 million in total liabilities,and a stockholders' deficit of $182,454.De Leon & Company, P.A., in Pembroke Pines, Fla., expressedsubstantial doubt about the Company's ability to continue as agoing concern, following the Company's 2009 results. Theindependent auditors noted that the Company has suffered recurringlosses from operations, net capital deficiencies, and negativecash flows from operations.A full-text copy of the Form 10-Q is available for free at http://researcharchives.com/t/s?6f5aChina Renewable Energy Holdings, Inc., was incorporated under thelaws of the State of Florida on December 17, 1999. The Companywas originally organized to provide business services andfinancing to emerging growth entities, and later redirected itsbusiness focus to market and to distribute energy-efficientproducts in China. In view of the growing concerns regardingbisphenol A ("BPA") leaching by the PC materials, the Companyvisions a market for PC and clear ABS (CABS) substitutes emergingfor industries such as toys and food packaging. Starting in early2009, the Company invested in formulating new resin products forthe replacement of the more traditional CABS and PC materials.BPA is an organic compound with two phenol functional groups usedto make polycarbonate plastic and epoxy resins, along with otherapplications.MASTER SILICON: Earns US$481,000 in September 30 Quarter--------------------------------------------------------Master Silicon Carbide Industries, Inc., filed its quarterlyreport on Form 10-Q, reporting net income of $480,971 on$3.70 million of revenue for the three months ended September 30,2010, compared with a net loss of $361,769 on $377,897 of revenuefor the same period of 2009.The Company had an accumulated deficit of $6.48 million as ofSeptember 30, 2010.The Company's balance sheet as of September 30, 2010, showed$26.78 million in total assets, $8.62 million in totalliabilities, $9.86 million in Redeemable Preferred Stock-A, $10.00million in Redeemable Preferred Stock-B, and a stockholders'deficit of $1.70 million.Child, Van Wagoner & Bradshaw, PLLC, in Salt Lake City, expressedsubstantial doubt about the Company's ability to continue as agoing concern, following the Company's 2009 results. Theindependent auditors noted that the Company has cash flowconstraints, an accumulated deficit, and has suffered recurringlosses from operations.A full-text copy of the Form 10-Q is available for free at http://researcharchives.com/t/s?6f59Lakeville, Conn.-based Master Silicon Carbide Industries, Inc.,through its indirectly wholly-owned operating subsidiary YiliChina, produces and sells in China high quality "green" siliconcarbide and lower-quality "black" silicon carbide (together,hereinafter referred to as "SiC"). SiC is a non-metalliccompound that has special chemical properties and a level ofhardness that is similar to diamonds, is produced by smeltingquartz sand and refinery coke at temperatures ranging fromapproximately 1,600 to 2,500 degrees centigrade in a graphiteelectric resistance furnace.SHANGHAI ZENDAI: S&P Affirms 'B' LT Corporate Credit Rating-----------------------------------------------------------Standard & Poor's Ratings Services affirmed its 'B' long-termcorporate credit rating on Shanghai Zendai Property Ltd. Theoutlook on the rating is negative. At the same time, S&P loweredthe issue rating on the company's senior notes to 'B-' from 'B'.All ratings have been removed from CreditWatch, where they hadbeen placed with negative implications on Feb. 3, 2010.S&P affirmed the rating on Shanghai Zendai following the company'srecent full settlement of the outstanding land premium for aproject on Shanghai Bund. The payment has removed the uncertaintyover the company's liquidity and financial positions.Nevertheless, S&P believes the rating will continue to be underpressure because S&P anticipate that the company's credit ratioswill remain weak due to increased borrowings, the possibility ofadditional capital contributions to the Shanghai Bund project, andlarge refinancing needs in 18 months.S&P lowered the issue rating on the company's senior notes toreflect structural subordination risks. The company's priorityborrowings over its total assets as at June 30, 2010, exceededS&P's notching threshold of 15% for speculative-grade debts. S&Pexpects this ratio to remain above the threshold in 2011."S&P believes Shanghai Zendai's credit ratios for 2010 and 2011will likely be weak for the rating. S&P estimate that thecompany's total borrowings will have increased substantially bythe end of 2010 from the previous year, even if the loans from anassociate company to fund the majority of the Shanghai Bund landpremium were excluded," said Standard & Poor's credit analystChristopher Lee. "S&P does not expect the project to producemeaningful cash flows for the company during its developmentperiod over the next few years.""The rating on Shanghai Zendai reflects the company's aggressiverisk appetite, its small scale and limited number of projects, andincreasing exposure to the capital-intensive and long pay-backcommercial leasing properties," said Mr. Lee. "The company'ssmall, albeit recurring, property leasing income, and anestablished track record in Shanghai temper these weaknesses."The negative outlook reflects S&P's expectations that ShanghaiZendai's credit ratios will remain weak for the rating due toincreased borrowings to fund the Shanghai Bund project and thepossibility that the project will require capital injections ifthere is a shortfall in funding. Further, S&P considers thecompany's liquidity to be less than adequate and believe liquidityis sensitive to any material property market downturn.================H O N G K O N G================BAOSHINN CORPORATION: Earns US$17,173 in September 30 Quarter-------------------------------------------------------------Baoshinn Corporation filed its quarterly report on Form 10-Q,reporting net income of $17,173 on $8.56 million of revenue forthe three months ended September 30, 2010, compared with netincome of $20,880 on $6.65 million of revenue for the same periodof 2009.The Company has an accumulated deficit of $1.15 million as ofSeptember 30, 2010.The Company's balance sheet as of September 30, 2010, showed$2.51 million in total assets, $1.62 million in total liabilities,and stockholders' equity of $891,217.As reported in the Troubled Company Reporter on April 8, 2010,Dominic K.F. Chan & Co., in Hong Kong, expressed substantial doubtabout the Company's ability to continue as a going concern. Theindependent auditors noted of the Company's accumulated losses.A full-text copy of the Form 10-Q is available for free at: http://researcharchives.com/t/s?6f3f About Baoshinn CorporationBased in Kowloon, Hong Kong, Baoshinn Corporation, through itsHong Kong subsidiary, is a ticket consolidator of majorinternational airlines. The Company provides travel services suchas ticketing, hotel and accommodation arrangements, tour packages,incentive tours and group sightseeing.DOTEX COMPANY: Court Enters Wind-Up Order-----------------------------------------The High Court of Hong Kong entered an order on October 14, 2010,to wind up the operations of Dotex Company Limited.The company's liquidators are Ho Man Kit Horace and Kong Sze ManSimone.DRANSFIELD HOLDINGS: First Meetings Slated for November 30----------------------------------------------------------Contributories and creditors of Dransfield Holdings Limited willhold a meetings on November 30, 2010, at 10:00 a.m., and11:00 a.m., respectively at 6/F., 88 Lockhart Road, Wanchai, inHong Kong.At the meeting, Kenny King Ching Tam, the company's liquidator,will give a report on the company's wind-up proceedings andproperty disposal.EMPIRE ONE: Court Enters Wind-Up Order--------------------------------------The High Court of Hong Kong entered an order on November 5, 2010,to wind up the operations of Empire One Trading Limited.The company's liquidator is: Mat Ng c/o John Lees Associates 20/F Henley Building 5 Queen's Road Central, Hong KongFAVOUR CENTURY: Court to Hear Wind-Up Petition on December 29-------------------------------------------------------------A petition to wind up the operations of Favour Century Limitedwill be heard before the High Court of Hong Kong on December 29,2010, at 9:30 a.m.Good Joy Consultants Limited filed the petition against thecompany.The Petitioner's Solicitors are: Fung, Wong, Ng & Lam Room 48, 4/F, New Henry House 10 Ice House Street Central, Hong KongGOBOWAY INVESTMENT: Court Enters Wind-Up Order----------------------------------------------The High Court of Hong Kong entered an order on October 29, 2010,to wind up the operations of Goboway Investment Limited.The company's liquidator is Bruno Arboit.GOLD ACT: Court Enters Wind-Up Order------------------------------------The High Court of Hong Kong entered an order on November 5, 2010,to wind up the operations of Gold Act Investment Limited.The company's liquidator is: Mat Ng c/o John Lees Associates 20/F Henley Building 5 Queen's Road Central, Hong KongGRAND PASTURES: Court Enters Wind-Up Order------------------------------------------The High Court of Hong Kong entered an order on October 29, 2010,to wind up the operations of Grand Pastures Limited.The company's liquidators are Ho Man Kit Horace and Kong Sau Wai.GREAT & RICH: Court Enters Wind-Up Order----------------------------------------The High Court of Hong Kong entered an order on January 26, 2010,to wind up the operations of Great & Rich Investment Limited.The company's liquidator is Bruno Arboit.INCLINE BEAUTY: Court Enters Wind-Up Order------------------------------------------The High Court of Hong Kong entered an order on October 21, 2010,to wind up the operations of Incline Beauty Global Limited.The company's liquidator is Yuen Tsz Chun Frank.INCORPORATED OWNERS: Court to Hear Wind-Up Petition on December 22------------------------------------------------------------------A petition to wind up the operations of The Incorporated Owners ofKin Yu Mansion will be heard before the High Court of Hong Kong onDecember 22, 2010, at 9:30 a.m.Universal Sight Limited filed the petition against the company.The Petitioner's Solicitors are: Mayer Brown JSM 18th Floor, Price's Building 10 Chater Road Central, Hong KongINTERSMART INTERNATIONAL: Court Enters Wind-Up Order----------------------------------------------------The High Court of Hong Kong entered an order on November 10, 2010,to wind up the operations of Intersmart International Limited.The official receiver is E T O'connell.JET WIN: Court Enters Wind-Up Order-----------------------------------The High Court of Hong Kong entered an order on February 18, 2010,to wind up the operations of Jet Win Logistices Limited.The company's liquidator is Bruno Arboit.KONG LAI: Court Enters Wind-Up Order------------------------------------The High Court of Hong Kong entered an order on November 10, 2010,to wind up the operations of Kong Lai Restaurant Limited.The official receiver is E T O'Connell.LABOUR BUILDINGS: Court Enters Wind-Up Order--------------------------------------------The High Court of Hong Kong entered an order on October 14, 2010,to wind up the operations of Labour Buildings Limited.The company's liquidators are Ho Man Kit Horace and Kong Sau Wai.LI FUNG: Court Enters Wind-Up Order-----------------------------------The High Court of Hong Kong entered an order on October 29, 2010,to wind up the operations of Li Fung Housewares Co., Limited (nowknown as Airnet Co., Limited).The company's liquidator is: Mat Ng c/o John Lees Associates 20/F Henley Building 5 Queen's Road Central, Hong KongLUEN TAT: Keung and Wai Appointed as Liquidators------------------------------------------------Mr. Stephen Liu Yiu Keung and Mr. David Yen Ching Wai onOctober 13, 2010, were appointed as liquidators of Luen Tat WatchBand Manufacturer Limited.The liquidators may be reached at: Mr. Stephen Liu Yiu Keung Mr. David Yen Ching Wai 62/F One Island East 18 Westlands Road Island East, Hong KongMAN FOOK: Court Enters Wind-Up Order------------------------------------The High Court of Hong Kong entered an order on October 15, 2010,to wind up the operations of Man Fook Leather Company Limited.The company's liquidators are Ho Man Kit Horace and Kong Sze ManSimone.MAN WAH: Court Enters Wind-Up Order-----------------------------------The High Court of Hong Kong entered an order on October 13, 2010,to wind up the operations of Man Wah (Hong Kong China) Limited.The company's liquidator is Bruno Arboit.MARCHPOLE GROUP: Court Enters Wind-Up Order-------------------------------------------The High Court of Hong Kong entered an order on November 2, 2010,to wind up the operations of Marchpole Group Limited.The company's liquidator is Yuen Tsz Chun Frank.MOKKERHATIN ENGINEERING: Court Enters Wind-Up Order---------------------------------------------------The High Court of Hong Kong entered an order on September 30,2010, to wind up the operations of Mokkerhatin EngineeringLimited.The company's liquidator is Yuen Tsz Chun Frank.=========I N D I A=========AMIYA STEEL: CRISIL Reaffirms 'B' Rating on INR80.73MM Term Loan-----------------------------------------------------------------CRISIL's ratings on the bank facilities of Amiya Steel Pvt Ltdcontinue to reflect ASPL's weak financial risk profile, marked bysmall net worth, high gearing, and weak debt protection metrics,marginal market share in the sponge iron business, and itsexposure to economic downturns in the steel industry. Theseweaknesses are partially offset by ASPL's moderate operatingefficiency, on account of its proximity to customers. Facilities Ratings ---------- ------- INR127 Million Cash Credit Limits B/Stable (Reaffirmed) INR80.73 Million Term Loan B/Stable (Reaffirmed) INR8.4 Million Bank Guarantee P4 (Reaffirmed)Outlook: StableCRISIL believes that ASPL's financial risk profile will remainconstrained by its small scale of operations and low cashaccruals. The outlook may be revised to 'Positive' if ASPL'sprofitability and net worth improve substantially. Conversely,the outlook may be revised to 'Negative' if ASPL's operatingmargin declines because of low capacity utilization, or if thecompany undertakes any additional, large, debt-funded capitalexpenditure programme. About Amiya SteelSet up in 2002, by Mr. Amiya Kumar Mondal and family, ASPLmanufactures sponge iron. The company's manufacturing facility atBankura (West Bengal) has a capacity to produce 60,000 tonnes ofsponge iron per annum.ASPL reported a profit after tax (PAT) of INR8 million on netsales of INR338 million for 2009-10 (refers to financial year,April 1 to March 31), against a PAT of INR10 million on net salesof INR352 million for 2008-09.ARUNODAY CONSTRUCTION: CRISIL Reaffirms 'D' Rating on Term Loan---------------------------------------------------------------CRISIL's ratings on Arunoday Construction Company Pvt Ltd's bankfacilities continue to reflect the delay by ACCPL in servicing itsterm loan obligations; the delay has been caused by ACCPL's weakliquidity. Facilities Ratings ---------- ------- INR75 Million Cash Credit Limits D (Reaffirmed) INR13.5 Million Corporate Term Loan D (Reaffirmed) INR0.3 Million Proposed LT Bank D (Reaffirmed) Loan Facility INR5 Million Standby Line of Credit P5 (Reaffirmed) INR80 Million Bank Guarantee P5 (Reaffirmed)The rating continues to reflect the small scale of operations ofACCPL and its low net-worth. ACCPL, however, continues to benefitfrom the longstanding presence of its promoters in theconstruction industry.UpdateACCPL's net sales have increased by 58 per cent in 2009-10 (refersto financial year, April 1 to March 31) over the previous year,backed primarily by increase in tenders won by the company andgood offtake of railways sleepers during the year. The company'soperating and profit after tax (PAT) margins in 2009-10 haveremained at 2008-09 levels. ACCPL's liquidity remains weak, withaverage month ending bank limit utilization of around 81 per centduring the period between September 2009 and October 2010. Thecompany, at instances, has delayed on servicing of its term loanobligations in the past 12 months through October 2010 primarilyon account of delays in receipt of payment from its customers.For 2009-10, ACCPL, on a provisional basis, reported a profitafter tax (PAT) of INR11.6 million on net sales of INR558.2million, as against a PAT INR6.83 million on net sales of INR354.3million for the preceding year. About Arunoday ConstructionSet up by Mr. Om Prakash Lahoty in 1980, ACCPL has beenmanufacturing concrete sleepers, used in railway tracks, since1984. The key raw materials involved in the process are cement,High Temperature Superconductor (HTS) wires, inserts, and chips.The company's manufacturing facility at Jagiroad (Assam) has acapacity to produce around 60,000 sleepers per annum. ACCPL isalso involved in building construction activities in Assam.BORIAVI PEOPLE'S: RBI Cancels License Due to Insolvency-------------------------------------------------------The Reserve Bank of India has cancelled the license of the BoriaviPeople's Co-operative Bank Ltd. as the bank had ceased to besolvent and all efforts to revive had failed."The order of cancellation of the license was given after theclose of business on November 19, 2010," RBI said in a statement.The Reserve Bank has also requested the Registrar of Co-operativeSocieties, Gujarat to issue an order for winding up the bank andappoint a liquidator.Consequent to the cancellation of its licence, The BoriaviPeople's Co-operative Bank Ltd. is prohibited from carrying on'banking business' as defined in Section 5(b) of the BankingRegulation Act, 1949 (AACS) including acceptance and repayment ofdeposits.With the cancellation of license and commencement of liquidationproceedings, the process of paying the depositors of The BoriaviPeople's Co-operative Bank Ltd. will be set in motion subject tothe terms and conditions of the Deposit Insurance Scheme. Onliquidation, every depositor is entitled to repayment of his/herdeposits up to a monetary ceiling of 1,00,000/- (Rupees One lakhonly) from the Deposit Insurance and Credit Guarantee Corporation(DICGC) under usual terms and conditions.For any clarifications, depositors may approach Shri C N Modi,Assistant General Manager, Urban Banks Department, Reserve Bank ofIndia, Ahmedabad.Modi may be reached at: Urban Banks Department Reserve Bank of India Ahmedabad Regional Office La Gajjar Chambers Ashram Road, Ahmedabad-380009 Tel: (079) 26589338 Fax: (079) 26584853BackgroundThe Reserve Bank had given a license to The Boriavi People's Co-operative Bank Ltd., Boriavi, Gujarat in December 1986. Thestatutory inspection of the bank with reference to its financialposition as on March 31, 2008, assessed the Capital to RiskWeighted Assets Ratio (CRAR) at (-) 17.9%, negative networth at(-) 67.40 lakh, erosion in deposits to the extent of 8.1%. Thebank's financial position deteriorated sharply as on March 31,2009, wiping out its owned funds. Its deposits were also eroded tothe extent of 22.2%.Due to its precarious financial position, the bank was placedunder directions under Section 35 A of the Banking Regulation Act,1949 (As Applicable to Cooperative Societies) on September 17,2009. The subsequent inspection of the bank with reference to itsfinancial position as on March 31, 2010, revealed that thefinancial position of the bank was not sound. The bank also didnot comply with the provisions of Section 11(1), 22(3) (a) and (b)of the Banking Regulation Act, 1949 (As Applicable to CooperativeSocieties).In the absence of any concrete/viable revival plan/ mergerproposal for turnaround and means to achieve the requiredregulatory prescriptions, the possibility of revival of the bankwas remote. Therefore, the Reserve Bank of India took the extrememeasure of cancelling licence of the bank in the interest ofbank's depositors.GOYAL ENERGY: Fitch Assigns 'B+' Ratings to Two Classes of Loans----------------------------------------------------------------Fitch Ratings has assigned India's Goyal Energy & Steel Pvt. Ltd.a 'B+(ind)' National Long-term rating with a Stable Outlook. Theagency has also assigned ratings to GESPL's bank loans: -- INR51 million long-term loans: 'B+(ind)'; -- INR245 million fund-based loans: 'B+(ind)'.The ratings are constrained by GESPL's relatively small scale ofoperations in the domestic steel industry, its weak credit metrics(FY10 net leverage: 9.4x) and price volatility of raw materials.The ratings are also constrained by low operating margins, and bylack of adequate fund-based limits required for the operations ofa recently completed ingot manufacturing facility.GESPL's ratings benefit from its 'approved-unit' status from PowerGrid Corporation India Limited; it makes more than 50% of itssales to PGCIL's suppliers, which has helped it maintainconsistently high capacity plant utilization (FY10: 90%).Positive rating triggers include high capacity utilization of therolling mill/ingot plants and sustained improvement in operatingmargins along with net leverage below 8x. Negative ratingtriggers include a further deterioration in net leverage andoperating margins.GESPL's revenues rose to INR1,160.4 million in FY10 (FY09:INR947.5 million), although EBITDAR margins fell to 2.44% (FY09:2.83%) due to raw material price volatility. The company's totaldebt increased to INR296.9 million at FYE10 (FYE09: INR227.1million) from additional loans taken for the recently completedingot project. The company reported a negative free cash flow ofINR127.5 million in FY10. Fitch expects FCF to stay negative overthe short-to-medium term due to higher working capitalrequirements which will lead to negative cash flows fromoperations.GESPL commenced its manufacturing activities at end-2005 bysetting up a rolling mill plant. It currently has an installedcapacity of 61,000 metric tonne per annum of rolling mill inRaipur (Chattisgarh), and has recently installed a 30,000 MTPA ofingot manufacturing facility at this site.GROVER VINEYARDS: CRISIL Reaffirms 'D' Rating on INR55MM LT Loan----------------------------------------------------------------CRISIL's ratings on the bank facilities of Grover Vineyards Ltdcontinue to reflect delays by GVL in servicing its term loans.The delays have been caused by GVL's weak liquidity. Facilities Ratings ---------- ------- INR55.00 Million Long-Term Loan D (Reaffirmed) INR90.00 Million Open Cash Credit D (Reaffirmed) INR20.00 Million Short-Term Loan P5 (Reaffirmed) INR15.00 Million Foreign Bill P5 (Reaffirmed) Discounting/Foreign Bill Exchange P5 (Reaffirmed) INR10.00 Million Foreign Letter of Credit P5 (Reaffirmed) INR50.00 Million Bank Guarantee P5 (Reaffirmed)GVL has a weak financial risk profile marked by high gearing and asmall net worth and its business risk profile is constrained bysusceptibility to adverse climatic conditions and adverseregulatory changes. However, the company benefits from itspromoter's experience in India's wine industry and its well-established brand Grover. About Grover VineyardsGVL (formerly, Grover Vineyards Pvt Ltd) was established in 1988by Mr. Kanwal Grover and his son, Mr. Kapil Grover, inDoddaballapur (outskirts of Bengaluru). The company's vineyardsare spread over 400 acres. Its winery has annual productioncapacity of 1.195 million bottles of 750 milliliters each. GVLsells its products under the Grover brandGVL reported a net loss of INR145 million on net sales of INR196million for 2009-10 (refers to financial year, April 1 to March31), against a net loss of INR127 million on net sales of INR136million for 2008-09.GVL reported a net loss of INR145 million onnet sales of INR196 million for 2009-10 (refers to financial year,April 1 to March 31), against a net loss of INR127 million on netsales of INR136 million for 2008-09.INDO SHELL: ICRA to Withdraw "LBB" Rating on INR6cr Bank Loans--------------------------------------------------------------ICRA has placed the "LBB" rating assigned to the INR6.0 crore fundbased bank facilities of Indo Shell Auto Agency Private Limited onnotice for withdrawal at the request of the company. As perICRA's policy, the rating will be withdrawn one year after thedate the withdrawal notice is given.MEDI PHARMA: CRISIL Reaffirms 'BB+' Rating on INR150MM Cash Credit------------------------------------------------------------------CRISIL's ratings on the bank facilities of Medi Pharma Drug Housecontinues to reflect Medi Pharma's below-average financial riskprofile marked by high gearing and weak debt protection metrics,exposure to risks relating to fluctuations in the prices of drugsand in the value of the Indian rupee, and the concentration in itssupplies from China. These weaknesses are partially offset by thebenefits that Medi Pharma derives from its established marketposition, and its promoters' experience in the bulk drugs tradingbusiness and track record of equity infusion. Facilities Ratings ---------- ------- INR150.00 Million Cash Credit BB+/Stable (Reaffirmed) INR450.00 Million Letter of Credit P4+ (Reaffirmed)Outlook: StableCRISIL believes that Medi Pharma will continue to benefit from itsestablished market position in the bulk drugs trading business,and longstanding relationships with its vendors; however, thefirm's financial risk profile is likely to remain below averagebecause of its large working capital requirements. The outlookmay be revised to 'Positive' if the firm's financial risk profileimproves significantly, aided by higher cash accruals andaccretion to reserves, or significant fresh equity infusion.Conversely, the outlook may be revised to 'Negative' if MediPharma's capital structure deteriorates due to large incrementalworking capital requirements or decline in its operating margin.UpdateDuring 2009-10 (refers to financial year, April 1 to March 31),Medi Pharma's net sales declined by 13 per cent year-on-year toINR1.29 billion, after growing by more than 30 per cent year-on-year in 2008-09 to INR1.49 billion. The exceptionally high salesachieved by the firm in 2008-09 were driven by the increasedstocking of drugs by Indian traders and a hike in prices duringthe year after the Chinese government closed drug-making units inthe run-up to the Olympics due to environmental concerns. MediPharma's profitability remained in line with past years, with itsprofit after tax (PAT) margin at less than 1 per cent in 2009-10.The firm's gearing reduced to 1.8 times as on March 31, 2010, from2.1 times as on March 31, 2009, due to lower utilization of bankfacilities, as the scale of operations declined. Its debtprotection metrics remained weak, with the ratio of net cashaccruals to total debt at 0.03 times and interest coverage ratioat 1.3 times.Medi Pharma reported a PAT of INR12.1 million on net sales ofINR1.29 billion for 2009-10, as against a PAT of INR9.6 million onnet sales of INR1.49 billion for 2008-09. About Medi PharmaMedi Pharma, promoted by Mr. Manharlal V Sanghavi, is a Mumbai-based trader of bulk drugs. The firm sources most of the drugsfrom China, and sells them to pharmaceutical companies in India.MOHIT DIAMONDS: CRISIL Reaffirms 'P4+' Ratings on Various Loans---------------------------------------------------------------CRISIL's rating on the short-term bank facilities of MohitDiamonds Pvt Ltd (Mohit Diamonds) continues to reflect MohitDiamonds' jewellery division's limited track record of servicingdebt in a timely manner, and the company's working-capital-intensive operations and weak debt protection metrics. Theserating weaknesses are partially offset by Mohit Diamonds' highoperational efficiency, backed by assured supply of rough diamondsfrom Diamond Trading Company because of its sightholder status,and by its promoter's extensive experience in the diamondsbusiness. Facilities Ratings ---------- ------- INR419.6 Million Packing Credit P4+ (Enhanced from INR419.2 Million) INR477.9 Million Post-shipment Facility P4+ (Enhanced from INR460.8 Million) INR174.0 Million Ad hoc Post-shipment P4+ (Reaffirmed) and Packing Credit (Reduced from INR175.7 Million)Established in 1991, Mohit Diamonds is the flagship company of theMohit group. The company has been a DTC sightholder sinceinception; the sightholder status is due for renewal in 2011. Thecompany, headed by Mr. Anoop Mehta, manufactures and exportspolished diamonds, primarily small diamonds. The promoter familyhas been in this business since 1916. The company has a presenceacross leading diamond consuming markets, such as the US, Japan,the Middle East, and other countries in Asia. Group company,Mohit Jewellery, merged with Mohit Diamonds in 2008-09, becameMohit Diamonds' jewellery division, manufacturing and exportingdiamond-studded jewellery. Its 26,000-square-foot manufacturingunit is in Andheri, Mumbai.PREET MACHINES: ICRA Assigns 'LBB' Rating to INR18cr Bank Debt--------------------------------------------------------------ICRA has assigned a long term rating of 'LBB' to the INR18.00crore fund based and non fund based facilities of Preet MachinesLimited. The outlook on the rating is stable.The rating takes into account significantly high customerconcentration risk as evidenced by a single customer accountingfor almost 50~80% of PML's revenue and top 5 customersconsistently accounting for almost 80% of revenue over past fewyears. The rating is also constrained on account of its exposureto cyclicality inherent in the end-user industries for itsproducts, i.e. steel rolling; which is reflected in decline inturnover during FY 2009-10 following the slowdown in order inflowsdue to weak economic conditions. As a result of decline inrevenues, the company's liquidity has remained stretched asreflected in consistently high utilization of its fund basedworking capital limits. With the improvement in economicconditions, the company's order book position has again revivedand provides visibility of revenues in near term, however almost80% of its current order book is accounted by a single customer,which will continue to pose high customer concentrations risk innear term. The rating also factors in relatively weak profitmargins of the company, which coupled with low utilization of itscapacities has resulted in below average return indicators.Notwithstanding the weak profitability and return indicators, thecompany's debt coverage indicators have remained satisfactory dueto its limited reliance on term loans for funding of its plant andmachinery, which coupled with steady equity infusion, has alsoresulted in comfortable capital structure with a gearing of lessthan 1 time over past few years. The rating also derives comfortfrom the established manufacturing facilities of the company andits demonstrated track record of growth and profitable operations.Going forward, the company's ability to diversify its customerbase and achieve higher revenue growth while improving its profitmargins will be key rating sensitivities. About Preet MachinesPreet Machines Limited is the flagship company of the Preet Group,and is mainly into the business of manufacturing rolling mills forsteel plants. The company has its manufacturing facilities locatedin the industrial area of Tronica City, Ghaziabad. During FY 2010,the company reported net sales of INR62.82 crore and net profit ofINR0.33 crore as against net sales of INR133.12 crore and netprofit of INR0.74 crore during FY 2009.QRS RETAIL: CRISIL Assigns 'BB' Rating to INR70 Million LT Loan---------------------------------------------------------------CRISIL has assigned its 'BB/Stable' rating to the bank facilitiesof QRS Retail Ltd. Facilities Ratings ---------- ------- INR70.00 Million Long-Term Loan BB/Stable (Assigned) INR288.00 Million Cash Credit BB/Stable (Assigned)The rating reflects QRSRL's below-average financial risk profile,marked by a high gearing and weak debt protection metrics,working-capital-intensive operations, and geographicallyconcentrated revenue profile. These rating weaknesses arepartially offset by QRSRL's established brand image in Kerala andits longstanding relationships with its suppliers.Outlook: StableCRISIL believes that QRSRL will maintain its position in theconsumer durables market in Kerala over the medium term, backed byits established brand image. The outlook may be revised to'Positive' if QRSRL diversifies its revenue profile or if itscapital structure improves significantly. Conversely, the outlookmay be revised to 'Negative' if the company contracts more-than-expected debt or if the margins decline, or if it extends fundingsupport to its group entities, leading to deterioration in itsfinancial risk profile. About QRS RetailIncorporated in 2006, QRSRL is part of the QRS group. QRSRLretails consumer durables, and has 21 retail outlets in Kerala.The company is jointly managed by Mr. S Gauthaman and his brother,Mr. S Muralidharan.The QRS group has been in the business of retailing for more thanfive decades. Besides retailing of consumer durables, the group isalso into retailing of mobile phones and textiles through variousother group entities. QRSRL operates most of its showrooms on theproperties of Quilon Radio Service, a group entity which is intoreal estate development.QRSRL reported a profit after tax (PAT) of INR8.60 million on netsales of INR1.67 billion for 2009-10 (refers to financial year,April 1 to March 31), against a PAT of INR6.20 million on netsales of INR1.29 billion for 2008-09.RAIN CII: Fitch Puts 'B' Rating on Rating Watch Negative--------------------------------------------------------Fitch Ratings has placed Rain CII Carbon (India) Ltd's ratings onRating Watch Negative on its ongoing corporate restructuring: -- 'B' Long-term foreign currency issuer default rating; -- 'B+/RR3' foreign currency senior secured term loans Tranche D (US$120.7m, of which US$89.2m is outstanding as at 30 September 2010); -- 'A-(ind)' National Long-term rating; and -- Senior secured revolver Tranche E1 (US$15m) and Tranche E2 (US$39.3m) at 'B+/RR3' and 'A-(ind)/F2+(ind)' on the National rating scale.RCCIL is undergoing a corporate restructuring exercise, wherebythe US-based Rain CII Carbon LLC (RCC US) will no longer be asubsidiary. Following the restructuring, both RCC US and RCCILwill be held by a common US-based holding company, have limitedlegal linkages, and limited cash flow fungibility. With theweakening of linkages between the two entities, Fitch's ratingapproach will move to that of a standalone analysis, in line withits criteria on rating entities within a corporate groupstructure.The company plans to renegotiate some of the terms of its existingloans such that the tight covenants and legal linkages with RCC USare likely to be weaker. Fitch believes that RCCIL's ratingscould be lower than the consolidated entity's on a standalonebasis, although its debt metrics are comparable with theconsolidated entity's, given its smaller size and limited accessto RCC US's cash flows following the restructuring. The Indiabusiness was also affected by substantial exchange rate and rawmaterial price volatility in 2009.The extent of downward pressure on the foreign currency IDR wouldmost likely be restricted to one notch, given its comfortableleverage (FY09 adjusted net debt/EBITDA (excluding guarantees):3x) and positive free cash flows. The ratings would also besupported by the company's fundamental business strengths,including proximity to a port which gives it a freight costadvantage, and underlying growing demand for anode grade calcinedpetroleum coke driven by the large aluminum capacity additions inIndia and the Middle East.The RWN will be resolved once Fitch receives information on thecompany's future plans and has clarity on the impact of therestructuring on the company's operating business, especially withregards to raw material sourcing and freight cost savings. Therestructuring is expected to come into effect by December 2010.The agency plans to resolve the RWN by January 2011.For the financial year ended 31 December 2009, RCCIL reportedrevenues of US$183.9m, with EBITDA margins of 17.8% and net incomemargins of 13%. The company continued to report positive freecash flows. In H110, although revenues were lower due to adecline in prices of CPC, the company was able to maintain EBITDAmargins. Net debt levels were at US$73m as at 30 September 2010,resulting in an annualized net debt/EBITDA of around 2.8x.RAHUL AGRO: ICRA Assigns 'LBB-' Rating to INR7cr Long Term Loan----------------------------------------------------------------ICRA has assigned an "LBB-" rating to the INR7 crore long termfund based limits Rahul Agro Industries. The outlook on therating is stable. The rating is constrained by the highfragmentation and competitive intensity in the sesame seed marketresulting in low profitability margins, vulnerability ofprofitability to price fluctuations which is a function of globalcrop position of sesame seed as well as domestic agro climaticconditions; and weak financial profile as reflected in highgearing level and weak debt protection metrics. The ratings,however, factor in the moderately long experience of the promotersof RAI in the sesame seed processing and trade and improvingdemand prospects for sesame seeds globally.Rahul Agro Industries is a proprietorship concern of Mr RahulPancholi established in 2006 for processing and sale of hulledsesame (Til) seeds. The firm has a processing plant located inAjmer, Rajasthan. The promoters have been engaged in the businessof sesame trading for exports over the last one decade underseparate firms. Based on provisional accounts, RAI had a netprofit of INR0.17 crore on a turnover of INR31.62 crore in2009-10.RATNACHINTAMANI METALLOYS: CRISIL Puts 'B' Rating on INR59MM Loan-----------------------------------------------------------------CRISIL has assigned its rating of 'B/Stable' to the bankfacilities of Ratnachintamani Metalloys Pvt Ltd. Facilities Ratings ---------- ------- INR60 Million Cash Credit B/Stable (Assigned) INR59 Million Term Loan B/Stable (Assigned) INR1 Million Proposed LT Bank B/Stable (Assigned) facilityThe rating reflects the company's exposure to stabilisationrelated risks, and its weak financial risk profile marked by smallnet worth and aggressive gearing. These weaknesses are mitigatedby the benefits that the company derives from its promoters'extensive industry experience and their financial support.Outlook: StableCRISIL believes that RMPL's business and financial risk profileswill remain constrained over the near to medium term since it is anew entrant in the industry and may take time to stabilize itsoperations. The outlook may be revised to 'Positive' if thecompany ramps up its operations and generates profits asenvisaged, within expected timeframe. Conversely, the outlookcould be revised to 'Negative' if RMPL fails to scale up itsrevenues and improve its accruals, which would constrain its debtrepayment ability, or it undertakes any large debt-funded capitalexpenditure that may further constrain its financial risk profile. About Ratnachintamani MetalloysRMPL was incorporated in July, 2008 by Mr. Dinesh Shah and Mr.Amit Shah to manufacture copper and copper alloy products, such astubes, rods, pipes, flanges, and flats. These products find usagein various end user industries such as panel manufacturing,automobile and electrical equipment industries and fertilizer anddairy plants. The company commenced operations in April 2010 atits unit in Umbergaon, Gujarat. The unit has an annual capacityfor manufacturing 2400 tpa of copper and copper alloy products.The plant involved a capital outlay of about INR110 million, whichhas been funded through a term loan of INR59.0 million, equityinfusion of INR27.5 million, and the remainder through unsecuredloans.SAMOSARAN YARNS: CRISIL Assigns 'BB' Rating to INR137.5MM LT Loan-----------------------------------------------------------------CRISIL has assigned its 'BB/Stable/P4+' ratings to the bankfacilities of Samosaran Yarns Pvt Ltd, which is part of the SYPL-SSPL combine. Facilities Ratings ---------- ------- INR90.0 Million Cash Credit BB/Stable (Assigned) INR137.5 Million Long-Term Loan BB/Stable (Assigned) INR57.5 Million Proposed LT Bank BB/Stable (Assigned) Loan Facility INR15.0 Million Bank Guarantee P4+ (Assigned)The ratings reflect the SYPL-SSPL combine's modest scale ofoperations and limited pricing flexibility because of thecommodity-like market it operates in. These rating weaknesses arepartially offset by the combine's promoters' experience in thesynthetic yarn industry.For arriving at its ratings, CRISIL has combined the business andfinancial risk profiles of SYPL and Samosaran Syntex Pvt Ltd(SSPL; a yarn-trading company). This is because the twocompanies, together referred to as the SYPL-SSPL combine, havecommon promoters and derive significant business synergies fromeach other. SYPL has extended corporate guarantee to SSPL's bankfacilities.Outlook: StableCRISIL believes that the SYPL-SSPL combine will maintain itsmarket position over the medium term and continue to benefit fromthe industry experience of its promoters. The outlook may berevised to 'Positive' if the combine sustains a significantincrease in its scale of operations, thereby increasing its cashaccruals, and improving its operating margin and debt protectionmetrics. Conversely, the outlook may be revised to 'Negative' ifthe combine undertakes a large, debt-funded capital expenditureprogramme, thereby adversely affecting its capital structure, orits operating margin or debt protection metrics decline. About Samosaran YarnsSYPL manufactures and trades in synthetic yarn. The company ispart of the Pukhraj Virchand group of companies, run by the Jainfamily, which has been in the yarn trading business since 1948.Mr. Jindas Jain and his brothers set up SYPL in 2006 tomanufacture yarn; its plant is in Bhiwandi (Maharashtra). Theplant processes yarn with counts ranging between 30 and 80; itsyarn is used primarily in shirting and dress materials. The planthas doubling and twisting facilities. The Bhiwandi plant has18,000 spindles. In 2008, SYPL began setting up a spinning plantat Silvassa (Gujarat) and commissioned it in September 2009; thisplant processes coarser yarn, and suiting and shirting fabric.The SYPL-SSPL combine reported a profit after tax (PAT) of INR14.9million on net sales of INR1698.7 million for 2009-10 (refers tofinancial year, April 1 to March 31), against a PAT of INR9.3million on net sales of INR987.9 million for 2008-09.STERLING TECHNOTEX: CRISIL Assigns 'D' Rating to INR89.2MM Loan---------------------------------------------------------------CRISIL has assigned its 'D/P5' ratings to Sterling Technotex PvtLtd's bank facilities. Facilities Ratings ---------- ------- INR40.00 Million Cash Credit D (Assigned) INR3.00 Million Standby Line D (Assigned) of Credit INR89.20 Million Term Loan D (Assigned) INR10.00 Million Letter of Credit P5 (Assigned) INR3.80 Million Bank Guarantee P5 (Assigned)The ratings reflect delay by STPL in servicing its term loan; thedelay has been caused by STPL's weak liquidity.STPL's weak financial risk profile is marked by below-average debtprotection metrics, and high gearing. The company is also exposedto risks related to small scale of operations and customerconcentration in revenue profile. STPL, however, benefits fromits promoters' industry experience.Incorporated in 2000, STPL produces polyester yarn. Initially,the company was into manufacturing blended yarn of polyester,viscose and cotton yarn. As on March 31, 2010, the company had acapacity 13,248 spindles in Rajapalayam (Tamil Nadu). It producespolyester texturised and high-twisted yarn of counts30's/42's/45's/50's. The company is promoted and managed by Mr.Subramaniya Raja and his family members.STPL reported a net loss (on a provisional basis) of INR2 millionon net sales of INR169 million for 2009-10 (refers to financialyear, April 1 to March 31), against a loss of INR3 million on netsales of INR174 million for 2008-09.SUPREME COATED: CRISIL Assigns 'BB' Rating to INR114.5MM LT Loan----------------------------------------------------------------CRISIL has assigned its 'BB/Stable' rating to Supreme Coated BoardMills Pvt Ltd's bank facilities. Facilities Ratings ---------- ------- INR114.50 Million Long-Term Loan BB/Stable (Assigned) INR15.30 Million Working Capital BB/Stable (Assigned) Demand Loan INR130.00 Million Cash Credit BB/Stable (Assigned)The rating reflects SCBM's small scale of operations, largeworking capital requirements, and average financial risk profile,marked by a weak capital structure. These rating weaknesses arepartially offset by SCBM's established relationships with itscustomers, and benefits that it derives from healthy growthprospects for the duplex board industry.Outlook: StableCRISIL believes that SCBM will continue to benefit from itspromoters' industry experience over the medium term. The outlookmay be revised to 'Positive' in case of significant improvement inSCBM's scale of operations, sustainable profitability, andimprovement in its capital structure. Conversely, the outlook maybe revised to 'Negative' if SCBM undertakes any large debt-fundedcapital expenditure programme, or its profitability declinessignificantly, thereby deteriorating its financial risk profile. About Supreme CoatedSet up in 2003, SCBM (formerly, Supreme Duplex Board Mills PvtLtd) commenced commercial operations in 2005. SCBM manufactureswhite-coated boards, which are used in the matchstick, firework,notebook, and packaging industries, among others. SCBM is thepioneer in duplex board manufacturing in and around Sivakasi(Tamil Nadu). SCBM has a production capacity of 150 tonnes perday.SCBM reported a profit after tax (PAT) of INR20 million on netsales of INR610 million for 2009-10 (refers to financial year,April 1 to March 31), against a net losses of INR0.40 million onnet sales of INR520 million for 2008-09.VENUS LIFESTYLES: ICRA Assigns 'LBB+' Rating to INR30cr Bank Debt-----------------------------------------------------------------ICRA has assigned long term rating of "LBB+" to the INR30.00 croreFund Based facilities and INR12.74 crore Term Loans of VenusLifestyles Limited. The outlook on long term rating is stable.ICRA has also assigned short term rating of A4+ to the INR10.70crore Non Fund based bank facilities of Venus Lifestyles Limited.The ratings assigned take into account the long track record ofpromoters in textiles industry, established brand 'ICO', forayinto embroidery work segment which is expected to boost themargins of the company, backward integration through the groupcompany International Thread Company Private Limited formanufacture of viscose hank yarn, robust growth in operatingincome over the past years translating into strong returnindicators. However the ratings are constrained by weak cashflows and higher gearing of the company resulting in modest debtprotection indicators. Further the competitive nature of theindustry is expected to put pressure on the margins of the companythough entry into embroidery work segment should provide somesupport. A change in Anti Dumping Duty structure can impact theimport cost of the company and can pose a risk to its operations.However, the company's ability to partially pass the raw materialprice volatility to its customers coupled with a fast conversionprocess (viscose hank yarn to viscose embroidery thread) mitigatesthe price risk to some extent. About Venus LifestylesVenus Lifestyles Limited earlier known as Venus Fibres Limited wasincorporated in 2004 and is a manufacturer of Embroidery Thread.The manufacturing facilities are located in Surat (Gujarat). Thecompany sells the Embroidery Thread under the brand 'ICO'. Thecompany also traded Embroidery Machines till FY 2008. In FY 2010,the company had installed machinery for Embroidery work onsarees. The current capacity for manufacture of Embroidery threadis 2700 MT per annum.Recent ResultsVenus Lifestyles Limited reported a profit after tax (PAT) ofINR3.93 Crore in FY 2009-10 on an operating income of INR121.15Crore registering a jump of 99% in operating income YoY. This wasled by an increase in traded goods sales which included sales of'Jari' and 'Fancy Grey' apart from an increase in sale ofmanufactured 'Embroidery Thread'.=================I N D O N E S I A=================MNC SKY: Moody's Assigns 'B2' Rating to US$165 Million Notes------------------------------------------------------------Moody's Investor Service has assigned definitive B2 rating on theUS$165 million 12.75% notes due 2015 guaranteed by PT MNC SkyVision. Ratings RationaleMoody's definitive rating on this debt obligation confirms theprovisional rating assigned on October 28, 2010. Moody's ratingrationale was set out in a press release issued on that date, andexplored more fully in a Credit Opinion issued on October 29,2010.The proceeds from this issuance will contribute to the acquisitionof S-Band satellite transponders from SES S.A. for $95 million andthe refinancing of existing indebtedness.Sky Vision's ratings were assigned by evaluating factors Moody'sbelieve are relevant to the credit profile of the issuer, such asi) the business risk and competitive position of the companyversus others within its industry, ii) the capital structure andfinancial risk of the company, iii) the projected performance ofthe company over the near to intermediate term, and iv)management's track record and tolerance for risk. Theseattributes were compared against other issuers both within andoutside of Sky Vision's core industry and Sky Vision's ratings arebelieved to be comparable to those of other issuers of similarcredit risk.Headquartered in Jakarta Indonesia, Sky Vision is a provider ofdirect to home pay-TV services. It is 75% owned by PT GlobalMediacom Tbk, a diversified media company, which is in turn 51%owned by PT Bhakti Investama Tbk. PT Bhakti Investama Tbk holdsan additional 20% direct stake in Sky Vision.VALLAR PLC: Moody's Comments on Berau Coal and Bumi Rating Impact-----------------------------------------------------------------Moody's Investors Service notes the series of transactionsannounced by the recently formed Vallar Plc, a UK-listed mininginvestment vehicle, with respect to its investment in theIndonesian coal mining sector, and sees no immediate impact on theB2/Stable rating of PT Berau Coal and the Ba3/Negative rating ofPT Bumi Resources Tbk.These transactions include the sale to Vallar Plc by PT Bakrie andBrothers (unrated) of a 25% holding in Bumi Resources and the saleby Recapital Advisors of a 75% holding in PT Berau Coal Energy,the immediate parent of Berau Coal.On completion of the transactions, expected in Q2 2011, Recapitalwill hold 25% and Bakrie 43% of Vallar Plc. Vallar Plc willeventually be renamed Bumi Plc.The consideration involves the issue of new Vallar shares andadditionally, in respect of BCE, a cash consideration of US$739million.The cash has now been received by Recapital for its BCE shares andthe economic rights given to Vallar, although the shares willremain in the name of Bukit Mutiara until April 2011, when thechange of ownership will be registered.Under the terms of the US$450 million notes issued by BerauCapital Resources Pte. Ltd, a change of control event will occuronce Vallar Plc owns the BCE shares. The issuer would then needto make a tender offer for the bonds, within 30 days, at a priceof 101% of face value. The early repayment would also trigger across-default in a US$400 million credit facility. However, onits own, the loan will require only the consent of lenders if theobligor changes.The bonds are currently trading at a premium to the price thatwould be offered under the change of control clause. Moody's isunaware of any alternative liquidity facility that could supportthe repayment of all the bonds and the loan were an event ofdefault called by creditors.However, the likelihood of such an event is remote in the nearterm and Moody's expects the change of control tender, and theprocess of obtaining consents from lenders, to be carefullymanaged between now and the completion of the deal in April. Thecost burden in terms of fees and purchases of tendered bonds islikely to be manageable and Moody's understands that it is notBCE's intention to cancel any bonds so acquired. At September 30,2010, BCE reported cash and short-term investments ofapproximately US$482 million, including US$156 million inrestricted cash holdings.Moody's notes that the broad wording of the change of controllanguage in Bumi Resources's bond documents seems to preclude achange of control event from arising on this occasion, as BakrieGroup affiliates will retain control of Bumi Resources by way oftheir interest in Vallar. Moody's therefore expects no impact onBumi Resources arising from these transactions.The minimal downside risk of a large event of default at BCE ismitigated by some positive developments. In particular, the cashnow received by Recapital has been applied to pay down its ownindebtedness, which is held by its subsidiary Bukit Mutiara, theimmediate vehicle holding its BCE shares. This debt representsthe recently refinanced vendor notes (some US$500 million) owed tothe last owners of BCE, as well as an outstanding US$150 millionowed to Bumi Resources.Moody's will continue to monitor developments at BCE and alsoconsider the credit standing of Vallar Plc as the new holdingcompany for BCE. As at September 30, 2010, Vallar Plc held someUS$1 billion in cash and no debt on its balance sheet. SomeUS$740 million of the liquid funds have since been disbursed asthe cash element of the BCE acquisition.Recapital's debt has been a factor weighing on Berau's rating,given that any default by Bukit Mutiara would cross-default intoBCE. Meanwhile, Berau Coal's operating performance is currentlymeeting expectations.Given the performance of BCE and the removal of the debt overhangat Recapital, Moody's may consider a positive rating action,subject to the removal of the residual threats arising from boththe bond's change of control clause and from facility lendersdenying consent to the change of obligor.=========J A P A N=========CHELSEA TRUST: Moody's Downgrades Rating on Various Certificates----------------------------------------------------------------Moody's Japan K.K has downgraded its rating on the Chelsea TrustClass C through G trust certificates and asset specified loan.The complete rating actions are: -- Class C, downgraded to A3 (sf) from A2 (sf); previously on November 5, 2010 A2 (sf) placed under review for possible downgrade -- Class F, downgraded to B3 (sf) from Ba3 (sf); previously on November 5, 2010 Ba3 (sf) placed under review for possible \ downgrade -- Class G, downgraded to B3 (sf) from Ba3 (sf); previously on November 5, 2010 Ba3 (sf) placed under review for possible downgrade -- Asset Specified Loan, downgraded to Caa3 (sf) from B3 (sf); previously on November 5, 2010 B3 (sf) placed under review for possible downgrade* Deal Name: Chelsea Trust Certificates and Chelsea Asset Specified Loan* Class: Class A1 through G trust certificates and Asset Specified Loan* Issue Amount (initial): JPY 20.0 billion* Dividend: Floating* Issue Date (initial): November 6, 2006* Final Maturity Date: August, 2013* Underlying Asset (initial): A specified bond backed by a commercial real estate certificate (the Chelsea Trust Certificates) and a specified loan (Chelsea Asset Specified Loan)* Originator: Mizuho Securities Co., Ltd.* Arranger: Mizuho Securities Co., Ltd.* Trustee: Mizuho Trust & Banking Co., Ltd.The Chelsea trust certificates and specified loan, effected inNovember 2006, represent the securitization of a high-rise officebuilding in Chuo-ku, Osaka.Chelsea Asset TMK issued a specified bond and took out a specifiedloan, both of which were backed by the property trust certificate.The originator entrusted the specified bond to the trusteepursuant to the trust agreement and received the Class A1 throughG Trust Certificates, which it then sold to investors. The trustcertificates and specified loan are rated by Moody's.Tenant concentration is high; approximately 65% of the totalrentable area was occupied by a single tenant. In October 2010,the tenant issued a press release (on its website) stating that itplanned to vacate the building in 2013. Rating RationaleThe current rating action and review reflect these factors:(1) Moody's is of the view that the fundamental profitability of the property is likely to be lower than was assumed when the rating was first assigned, and will be for some time. Moody's has therefore changed its stabilized rent estimates, although operating costs remain roughly the same as previously. As a result, Moody's stabilized net cash flow estimate has declined by 26%, and stabilized value by 32%, from its initial assumptions.(2) This rating action is based mainly Moody's concerns about the likelihood of collateral recovery in light of the re-assessed value. However, it also takes intoMoody's did not receive or take into account a third party duediligence report on the underlying assets or financial instrumentsrelated to the monitoring of this transaction in the past sixmonths.JAPAN AIRLINES: Creditors Back Rehabilitation Plan--------------------------------------------------Japan Airlines Corp. won approval for its groupwide rehabilitationplan Monday after one of its labor unions decided not to call astrike, Kyodo News reports citing the state-backed EnterpriseTurnaround Initiative Corp.Kyodo News relates that most of JAL's creditors approved the planto revamp JAL, JAL International and JAL Capital, reaching a basicagreement to provide new loans. This should allow the plan to winapproval from the Tokyo District Court by the end of this month,Kyodo News says.Kyodo News discloses that under the rehabilitation plan submittedto the court in August, JAL aims to post JPY117.5 billion inoperating profit in the fiscal 2013 by cutting its group workforce by about 16,000, scrapping money-losing flights, andconducting other cost-cutting measures.The carrier's state-backed bankruptcy administrator said JAL wasunder pressure to win over its creditors by its deadline of lastFriday, and more than 96 percent of its creditors approved theplan by mail, according to Kyodo News.The Mainichi Daily News reports that the 1,750-member JAL FlightCrew Union (JFU) of JAL has called off voting on the right tostrike in protest at the company's plans for downsizing as part ofits restructuring strategy.ETIC had said that it would freeze some JPY350 billion infinancing for the struggling carrier if its labor unions decidethey have the right to strike over major job cuts, the daily says."We canceled the vote for now because of rising tension amongworkers over the ETIC's warning that it would withhold financing,"the Mainichi Daily quoted an official at JFU as saying. "We'vedecided to concentrate on other ways to prevent the company fromlaying off workers." About Japan AirlinesJapan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-based company mainly engaged in the provision of airtransport services. The Company is active in five businesssegments through its 203 subsidiaries and 83 associated companies.JAL International Co. Ltd. is a wholly owned operating subsidiaryof Japan Airlines Corporation.Japan Airlines Corporation, Japan Airlines International Co.,Ltd., and JAL Capital Co., Ltd., on January 19, 2010, filed thepetitions to commenced corporate reorganization proceedings withthe Tokyo District Court. The Court appointed the EnterpriseTurnaround Initiative Corporation of Japan and Eiji Katayama,Esq., as reorganization trustees.Japan Airlines Corp. filed for reorganization January 19, 2010, inthe Tokyo District Court and filed a Chapter 15 petition in NewYork (Bankr. S.D.N.Y. Case No. 10-10198). The Company estimateddebts at $28 billion.TITAN JAPAN: Fitch Downgrades Ratings on Four Classes of Notes--------------------------------------------------------------Fitch Ratings has downgraded four classes of notes from TitanJapan, Series 1 GK due November 2012, and simultaneously withdrawnthe rating on the interest-only Class X notes. The transaction isa Japanese multi-borrower type CMBS securitization. The ratingactions are as listed below. -- JPY60.89bn* Class A notes downgraded to 'BBBsf' from 'AA-sf'; Outlook revised to Negative from Stable; -- JPY12.1bn* Class B notes downgraded to 'Bsf' from 'BBBsf'; Outlook Negative; -- JPY11.8bn* Class C notes downgraded to 'CCCsf' from 'BBsf'; assigned a Recovery Rating of 'RR5'; and -- JPY11.7bn* Class D notes downgraded to 'CCsf' from 'Bsf'; assigned a Recovery Rating of 'RR6'. * as of 18 November 2010The rating on the Class X notes (interest-only) of 'AAAsf' withStable Outlook has been withdrawn.Classes A to D have been downgraded following further downwardsrevisions of the values of the collateral properties backing thisCMBS in Fitch's analysis. Most of the collateral propertiesbacking this CMBS are general merchandise stores. Fitch isconcerned that the possible slowdown in sales from such stores maynegatively affect the appetite of potential buyers of theseproperties.Fitch has revised downwards the net cash flows for 23 of the 34collateral properties, taking into account current retail andoffice lease market conditions, and the actual cash flowperformances of the properties to date. Each property's cap ratewas revised depending on the particular sector of the commercialreal estate market in which it operates. The cap rates of retailproperties located in local cities have generally been revisedupwards to reflect the current stressed condition of that market.Cap rates of office properties located in central Tokyo were leftlargely unchanged.As a result, Fitch has adopted values for the underlyingproperties, for the purpose of this review, which are on average25% lower than those adopted in the previous review in November2009; these values are on average 50% lower than the agency'sinitial analysis in December 2007. The large decline at this timeis mainly due to the revision of retail properties' value whichaccount for 76% of the collateral portfolio.The impact of these revisions outweighs the positive effect of therepayment of one underlying loan. This loan, having accounted for14.9% of the total portfolio as of August 2010, was paid in fullin September 2010 and resulted in slightly improved creditenhancement levels for classes A to C.The agency has revised the Outlook on class A to Negative, whilethe Outlook on class B remains Negative, amid concerns about theliquidity of the retail properties located in regional cities.The rating on the interest-only class X notes, which addressesonly the likelihood of receiving interest payments while principalthereon remains outstanding has been withdrawn. For additionalinformation, please refer to the rating action commentary,entitled "Fitch Revises Practice for Rating IO & Pre-PaymentRelated Structured Finance Securities", dated 23 June 2010.At closing, the notes were backed by six loans ultimately securedby 43 real estate properties in Japan. To date, two loans havebeen fully repaid, bringing the total number of loans backing thetransaction to four, secured by a total of 34 properties. Allfour loans are in default.* S&P Raises Ratings on Five Tranches From Five Japanese CDOs-------------------------------------------------------------Standard & Poor's Ratings Services raised its ratings on fivetranches relating to five Japanese synthetic CDO transactions, andremoved the ratings from CreditWatch with positive implications.The rating actions are part of S&P's regular monthly review ofsynthetic CDOs whose ratings have been placed on CreditWatch withpositive or negative implications. These actions incorporate,among other things, the effect of rating migration withinreference portfolios. Ratings List Signum Vanguard Ltd. Class A secured floating-rate credit-linked notes series 2005-06 To From Issue Amount -- ---- ------------ CCC+pNRi (sf) CCCpNRi (sf)/Watch Pos JPY3.0 bil. Silk Road Plus PLCSeries 13 limited recourse secured fixed rate credit-linked notes To From Issue Amount -- ---- ------------ BBB- (sf) BB+ (sf)/Watch Pos S$8.064 mil.Series 14 limited recourse secured fixed rate credit-linked notes To From Issue Amount -- ---- ------------ BBB- (sf) BB+ (sf)/Watch Pos S$8.5 mil.Series 15 limited recourse secured fixed-rate credit-linked notes To From Issue Amount -- ---- ------------ BBB- (sf) BB+ (sf)/Watch Pos S$8.0 mil.Series 16 limited recourse secured fixed-rate credit-linked notes To From Issue Amount -- ---- ------------ BBB- (sf) BB+ (sf)/Watch Pos S$9.0 mil.=========K O R E A=========HYUNDAI ENGINEERING: Hyundai Group's Funding Plan Not Under Review------------------------------------------------------------------Bloomberg News reports Korea Exchange Bank said Friday thatcreditors aren't reviewing Hyundai Group's funding plans for theacquisition of Hyundai Engineering & Construction Co.Bloomberg, citing Yonhap News, reported earlier Friday thatcreditors and South Korea's financial regulator will reviewHyundai Group's plan for funding the purchase of a stake inHyundai Engineering.As reported in the Troubled Company Reporter-Asia Pacific onNov. 17, 2010, Yonhap News Agency said Hyundai Engineering &Construction Co.'s creditors selected Hyundai Group as thepreferred bidder for a major stake in the company. Korea ExchangeBank, state-run Korea Finance Corp., Woori Bank and other creditorbanks have been pushing to find a buyer for the 34.88% stake inthe builder, estimated to fetch up to KRW4 trillion. Creditorbanks plan to sign a preliminary deal with Hyundai Group by theend of this month and seal a final contract by year-end. About Hyundai EngineeringHeadquartered in Seoul, South Korea, Hyundai Engineering &Construction Company Limited -- http://www.hdec.co.kr/-- is involved in civil engineering, housing development projects andother contracted construction works in South Korea andinternationally. Its operations fall into these key areas:building, civil works, plant and power works. Within thebuilding and housing section, HDEC is involved in constructionand architecture, and has been involved in residential, commercialand institutional building projects.Hyundai Engineering has been under creditors' control. InAugust 2001, Hyundai Group was split into three -- Hyundai Motor,Hyundai Heavy Industries and one which retained the name, HyundaiGroup -- while the remaining businesses were taken over bycreditors.===============M A L A Y S I A===============GENERAL CORPORATION: Appoints Ernst & Young as Liquidator---------------------------------------------------------RHB Investment Bank Berhad, on behalf of General CorporationBerhad, disclosed that at the extra ordinary general meeting ofthe Company held on November 19, 2010, the company's shareholdersapproved these resolutions: (i) appointment of Messrs. Mazars as auditors of the Company; (ii) members' voluntary winding-up of GCB; and (iii) appointment Encik Adam Primus Abdullah and Mr. Duar Tuan Kiat of Messrs. Ernst & Young as liquidators of the Company.In accordance with Section 258(2) of the Companies Act, 1965, allthe powers of the directors of the Company have on even dateceased following the appointment of the Liquidators. About General CorporationGeneral Corporation Berhad is engaged in investment holding andquarry operations. The Company's five business segments areproperty development and investment and investment holding,construction of residential and commercial properties, rubberproducts trading, hotel operations, and investment in associatesand joint ventures. Its property development and investment andinvestment holding segment covers the development of andinvestment in residential and commercial properties andinvestment in quoted and unquoted securities. Its subsidiariesinclude Bina Meganmas Sdn. Bhd., Fung Keong Rubber Manufactory(Malaya) Sdn. Bhd., GCB Trading Sdn. Bhd. and Trans-Crete Sdn.Bhd. The Company operates in Malaysia, Singapore, Australia andVietnam.General Corporation Berhad has been considered a PN17 Companybased on the criteria set by the Bursa Malaysia Securities Bhd.The Company triggered Paragraph 2.1(g) and 2.1 (h) of the ListingRequirements as it had ceased all of its business and entireoperations due the completion of the proposed disposal of itsentire business and undertaking, including all of its assets andliabilities, to Consistent Record Sdn Bhd.On May 19, 2010, GCB entered into a conditional master sale andpurchase agreement with CRSB for the proposed disposal of itsentire business for MYR505.04 million.HOVID BERHAD: 30th Annual General Meeting Set for December 15-------------------------------------------------------------Hovid Berhad will hold its 30th annual general meeting on Dec. 15,2010, at 10:30 a.m. at Heritage Ballroom, Heritage Hotel Ipoh,Jalan Raja DiHilir, 30350 Ipoh, in Perak Darul Ridzuan.At the meeting, the shareholders will be asked to: -- receive and adopt the Audited Financial Statements for the financial year ended June 30, 2010, together with the Reports of the Directors and Independent Auditors; -- approve the payment of Directors' fees of MYR174,000 for the financial year ended June 30, 2010, to be divided among the Directors in such manner as the Directors may determine; -- re-elect Mr. Ho Sue San at David Ho Sue San who is retiring by rotation pursuant to Article 83 of the Company's Articles of Association; -- re-elect Mr. Leong Kwok Yee who is retiring by rotation pursuant to Article 83 of the Company's Articles of Association; -- re-appoint Messrs. KPMG as Auditors of the Company for the ensuing year and authorize the Directors to fix their remuneration; and -- pass these ordinary resolutions: * Authority to Allot and Issue Shares Pursuant to Section 132D of The Companies Act, 1965. * Proposed renewal of shareholders' mandate for recurrent related party transactions of a revenue or trading nature with Carotech Berhad. * Proposed renewal of shareholders' mandate for recurrent related party transactions of a revenue or trading nature with Future Express Sdn. Bhd. * Proposed renewal of shareholders' mandate for the purchase by Hovid of its own ordinary shares on Bursa Securities of not more than ten percent (10%) of the issued and paid-up share capital of Hovid. -- pass special resolution: * Proposed amendment to the Articles of Association of the Company. About Hovid BerhadHovid Berhad (KUL:HOVID) -- http://www.hovid.com/-- is a Malaysia based company. The Company is engaged in the business ofmanufacturing pharmaceutical and herbal products. The Companyoperates in two segments: pharmaceutical, which is engaged inmanufacturing and selling of pharmaceutical products, andphytonutrient, which includes extraction and processing ofnutrients from palm oil for the purpose of manufacturing andproducing of pharmaceutical, phytonutrient andoleochemicals/biodiesel products. The Company's geographicalsegments include Asia, Africa, Europe, Pacific Island, and Northand South America.Hovid Berhad has been considered a Practice Note 17 company basedon the criteria set by the Bursa Malaysia Securities pursuant toParagraph 2.1(d) of PN17.Hovid disclosed that that a subsidiary, Carotech Berhad, hasdefaulted on the repayment of certain borrowings which were duefor payment during the financial year ended June 30, 2010, whichwas announced on July 1, 2010, pursuant to the Guidance Note 5 ofthe Bursa Securities ACE Market Listing Requirements. Carotechhas also sought the assistance of Corporate Debt RestructuringCommittee to mediate between Carotech and its lenders on itsProposed Debt Restructuring scheme. The CDRC has agreed tomediate and allowed a period of six months from July 1, 2010, tocomplete the proposed scheme. The Company said that the lendersof Carotech are currently reviewing and considering the proposedscheme but no decision has been made as at the date the financialstatements for the financial year ended June 30, 2010, wereapproved by the Board.TRANSMILE GROUP: CCM Strikes Off Thailand Unit From Register------------------------------------------------------------Transmile Group Berhad said it received notification from theCompanies Commission of Malaysia that Transmile (Thailand) Sdn.Bhd., a wholly-owned subsidiary of the Company, has been struckoff from the register of the CCM.TTSB was incorporated in Malaysia on December 15, 1997, and itspresent issued and paid-up capital is MYR1,200,002. Its principalactivity was investment holding and currently it is dormant.The Striking-Off has no material effect on the earnings and netassets per share of the Company for the financial year endingDecember 31, 2010. Upon completion of the Striking-Off, TTSB willcease to be a wholly-owned subsidiary of TGB. About Transmile GroupTransmile Group Berhad is an investment holding company. TheCompany is engaged in provision of air transportation and relatedservices. The Company's subsidiaries include Transmile AirServices Sdn. Bhd., which provides air transportation and relatedservices and deals in aircraft, aircraft parts and equipment;Transmile Thailand Sdn. Bhd., which is engaged in investmentholdings; Transmile Management Sdn. Bhd., which providesmanagement services; Viunique Corporation Sdn. Bhd., which leasesaircraft; and CEN Worldwide Sdn. Bhd., which is engaged in expressdistribution and logistics management services. * * *Transmile Group Berhad has been considered as an Amended PracticeNo. 17 company based on the criteria set by the Bursa MalaysiaSecurities Bhd.According to a disclosure statement with the bourse, the PN17criteria was triggered resulting from Transmile's latest unauditedquarterly announcement for the full financial year ended Dec. 31,2009, wherein the shareholders' equity of the Company on aconsolidated basis is less than 25% of the Company's issued andpaid-up capital (excluding treasury shares) and such shareholders'equity is less than MYR40 million.====================N E W Z E A L A N D====================CAFE CUBA: Faces Liquidation Over NZ$300,000 Unpaid GST-------------------------------------------------------Jimmy Ellingham at Manawatu Standard reports that Cafe CubaTrustee Ltd is facing a court challenge that could shut its doors,as the Inland Revenue Department tries to recoup more thanNZ$300,000 in unpaid GST.Manawatu Standard relates that an application to put Cafe CubaTrustee Ltd, directed by former All Blacks manager Mike Banks,into liquidation will be heard at the High Court in PalmerstonNorth on Thursday next week. The IRD is seeking NZ$324,213.78 inunpaid GST, plus penalties and interest, the report notes.According to Manawatu Standard, Mr. Banks took over Cafe Cuba, onthe corner of George and Cuba streets, in 2007 when original ownerPhil Monk sold the business. Mr. Monk had set it up in August1996 on a site previously home to restaurants such as Valentino'sand Chicken Tandoori.Cafe Cuba is a Palmerston North-based restaurant.=====================P H I L I P P I N E S=====================PHILIPPINE AIRLINES: Reports US$28.2 Mil. Net Income in Sept. Qtr.------------------------------------------------------------------The Philippine Daily Inquirer reports that flag carrierPhilippine Airlines reported a net income of US$28.2 million forthe quarter ended September 30, 2010. PAL reported revenues ofUS$399.5 million for the second quarter of fiscal year 2010-11, upby 33% from US$299.7 million in 2009.PAL said the carrier's "modest" gains came amid uncertaintiesspawned by a looming fuel price hike and a new case of bird flu inHong Kong, the Inquirer says.PAL also reported increases in both passenger (26 percent) andcargo (57 percent) revenues from its international operations,with an improvement as well in yields generated from passengerseat offerings, the report adds.The Inquirer relates PAL president and chief operating officerJaime Bautista said the company remained "cautiously optimistic"of the airline's prospects."The global airline industry remains vulnerable to volatile marketconditions. Take fuel, for example. If the upward trendcontinues, it could wipe out all our recent gains," the Inquirerquoted Mr. Bautista saying.Mr. Bautista said the recent negative travel advisories on thePhilippines might also lead to a dip in demand, the Inquirer adds. About Philippine AirlinesPhilippine Airlines -- http://www.philippineairlines.com/-- is the Philippines' national airline. It was the first airline inAsia and the oldest of those currently in operation. With itscorporate headquarters in Makati City, Philippine Airlines fliesboth domestic and international flights. First taking off in1941, the carrier has grown into a fleet of about 40 aircraft(including five Boeing 747-400s) flying to more than 20 domesticpoints and about 30 foreign destinations. * * *As reported in the Troubled Company Reporter-Asia Pacific onApril 21, 2010, the Manila Bulletin said that the PhilippineAirlines is to spin off its three non-core units as a last resortto avoid bankruptcy. PAL will spin off its three non-core units:inflight catering services; airport services, including groundhandling, cargo handling and ramp handling; and call centerreservations, the Manila Bulletin said. The PAL Employees Unionestimated that 2,000 to 4,000 employees assigned to thosedepartments could be retired. PAL said competition from overseascarriers, slower global economic growth, and higher oil prices hadprompted the airline to slash its non-core businesses. Thecarrier had approached several investors but failed to securefinancial help, and equity had dropped to a worrisome US$1.1million as of February 2010, according to the Manila Standard.The TCR-AP, citing BusinessWorld Online, reported on July 28,2010, that Philippine Airlines announced a narrower loss for itsfiscal year that ended March 2010 to $14.3 million, from theprevious year's $297.8 million, but warned of still weak demandfor international flights.=================S I N G A P O R E=================TRANSFIELD ER: Seeks Protection From Suits in the U.S.------------------------------------------------------Transfield ER Cape Ltd., an operator of bulk cargo shipsliquidating in British Virgin Islands courts, sought protectionfrom claims and lawsuits in the United States by filing a Chapter15 petition in Manhattan (Bankr. S.D.N.Y. Case No. 10-16270).Casey McDonald, Bob Yap Cheng Ghee and Patrick Cowley, as foreignrepresentatives, filed the Chapter 15 petition. James H. Power,Esq., at Holland & Knight, LLP, in New York, serves as counsel tothe foreign representatives.The Debtor has assets of $273.1 million and liabilities of$432 million, according to its financial statements.TERC has pending liquidation proceedings in a British VirginIslands court. In September, TMT Bulk Corporation, trading as TMTBulk Co. Ltd., applied to the BVI Court for a winding-up orderagainst TERC and the appointment of a liquidator. Later in themonth, the BVI Court issued an order directing that (i) TERC bewound up by the BVI Court in accordance with the provisions of the2003 Act and (ii) appointing Casey McDonald, Bob Yap Cheng Gheeand Patrick Cowley, as Joint Liquidators of TERC.The Joint Liquidators requested recognition of the BVI Liquidationas a foreign main proceeding primarily to obtain the U.S.Bankruptcy Court's assistance in enforcing the automatic stay ofproceedings that came into effect, under BVI law (the 2003 Act),when the BVI Liquidation was ordered by the BVI Court. Despitethe BVI stay, five of TERC's creditors have continued with pendingsuits against TERC in the United States in the Supreme Court, NewYork County, and in the District Court for the Southern Districtof New York."Recognition of the BVI Liquidation as a foreign main proceedingwould confer" upon TERC the protection of sections 362 and 1520 ofthe Bankruptcy Code, thereby preventing one creditor from gainingan advantage over similarly situated creditors and preventing onecreditor from otherwise interfering with the BVI Liquidation ofthe TERC estate," Mr. McDonald said in a court filing.TERC's main bankruptcy in the British Virgin Islands is alreadyrecognized by the English High Court of Justice, ChanceryDivision. In addition, TERC has received a winding up order froma Singapore court, which also appointed Messrs. McDonald, Cowley,and Yap as liquidators.TERC blamed its woes on the dramatic collapse for transportationof bulk cargo in 2008 as a result of the global economic downturn.At that time, the Baltic Dry Index, which measures average globalfreight prices for the transportation of bulk goods, collapsed,and the price of carrying bulk goods and the demand for carriageof bulk goods dropped significantly. As a result, TERC'sprofitability deteriorated from late-2008 onwards.===========T A I W A N===========AMERICAN INT'L: Rules Out Listing Nan Shan in Taiwan Bourse-----------------------------------------------------------Crystal Hsu at Taipei Times reports that Financial SupervisoryCommission Chairman Chen Yuh-chang confirmed that AmericanInternational Group is not interested in listing its Taiwansubsidiary, Nan Shan Life Insurance Co, to ease its financialwoes.Mr. Chen made the remarks in response to lawmakers' questions onwhether the regulator would consider allowing Nan Shan Life totrade shares on the local bourse to help the US firm pay down itsdebts without selling the insurer, Taipei Times says."The commission made several contacts with AIG and conveyedrelated options, including listing Nan Shan," Mr. Chen told thelegislature's Finance Committee, according to Taipei Times.AIG, according to Mr. Chen, has yet to make a positive response,indicating it is not interested, Taipei Times notes. Mr. Chensaid there is little the commission can do to prevent the sale ofNan Shan as long as AIG complies with five principles when findinga purchaser.Taiwan's Financial Supervisory Commission on Aug. 31, 2010,rejected an application to buy AIG's Nan Shan Life by a groupincluding Primus and China Strategic Holdings Ltd., citingconcerns over its financial capability and long-term commitment tooperate the business. Bloomberg News said AIG had been trying formore than a year to complete what's expected to be its second-biggest disposal since the September 2008 U.S. government bailout.AIG expects to complete the sale of Nan Shan within a year,Bloomberg added. About AIGAmerican International Group, Inc. -- http://www.aig.com/-- is an international insurance organization with operations in more than130 countries and jurisdictions. AIG companies serve commercial,institutional and individual customers through one of the mostextensive worldwide property-casualty networks of any insurer. Inaddition, AIG companies are leading providers of life insuranceand retirement services around the world. AIG common stock islisted on the New York Stock Exchange, as well as the stockexchanges in Ireland and Tokyo.In September 2008, AIG experienced a liquidity crunch when itscredit ratings were downgraded below "AA" levels by Standard &Poor's, Moody's Investors Service and Fitch Ratings. AIG almostcollapsed under the weight of bad bets it made insuring mortgage-backed securities. The Company, however, was bailed out by theFederal Reserve, but even after an initial infusion of$85 billion, losses continued to grow. The later rescue packagesbrought the total to $182 billion, making it the biggest federalbailout in U.S. history.AIG has been working to protect and enhance the value of its keybusinesses, execute an orderly asset disposition plan, andposition itself for the future. AIG has sold a number of itssubsidiaries and other assets to pay down loans received from theU.S. government, and continues to seek buyers of its assets.=============T H A I A N D=============KRUNG THAI: Fitch Affirms Individual Rating at 'C/D'----------------------------------------------------Fitch Ratings has affirmed Krung Thai Bank Public CompanyLimited's Long-term foreign currency Issuer Default Rating at'BBB' with a Stable Outlook and Individual Rating at 'C/D'. Acomplete list of other ratings, all of which have also beenaffirmed, is included at the end of this release.KTB's ratings are primarily based on government ownership andsupport. KTB is Thailand's second-largest bank with an 18.5%market share. Its major shareholder is the Bank of Thailand'sFinancial Institutions Development Fund, with a 55% stake. Fitchbelieves there is a high probability KTB would receive statesupport if needed, due to its size and importance to the financialsystem and economy, as well as its majority state-ownership andcontrol. The bank's Individual Rating factors in its significantdomestic franchise as well as the bank's stand-alone financialposition; KTB has maintained strong core capital levels, whileprofitability and asset quality trends have been improving,although asset quality and reserve coverage is still weaker thanpeers.KTB reported stronger performance in 9M10 compared with 9M09, witha 21% increase in net profit to THB11.4bn and return on assets of0.9%, driven mainly by stronger revenues due to loans growth (up11% yoy) and higher fee income. However, KTB's net interestmargin declined to 3% in 9M10 (2009: 3.2%) due to higher loweryielding assets such as loans to government and interbank andmoney market lending. KTB's overall performance for 2010 islikely to remain in line with its 9M10 performance, with potentialfor further improvement in 2011 given the improving domesticeconomic outlook.Despite the weak economic conditions in the past three years,asset quality trends have continued to gradually improve. Thebank's NPLs have fallen to THB81.8bn or 7% of total loans at end-September 2010 (end-2009: THB85.5bn or 8% of total loans),although NPLs remains higher than peers. Also, KTB's special-mention loans appeared to have stabilized at THB19.8bn at end-September 2010 or 1.7% of total loans (end-2009: THB19.1bn or 1.8%of total loans), and remained lower than peers. KTB's loan lossreserves have been increasing over the past few years to THB45.6bnat end-September 2010, although its coverage ratio (at 56%) is lowcompared with the industry average of over 80%, indicatingadditional provisioning risks. While specific provisioning ismore in line with peers, the bank has a low level of generalreserves due in part to higher exposure to government-relatedloans (17% of total loans) which usually requires littleprovisioning.KTB's funding and liquidity remain stable as it has one ofThailand's strongest local deposit franchises as most stateenterprises and government employees deposit their savings withthe bank. The bank's loan to deposit ratio stood at 96.8% at end-September 2010, although the ratio would improve to a moremoderate level of about 88%, if bills of exchange, which aregenerally classified as an alternative instrument for depositors,are included. KTB's capital appears strong with Tier 1 capitaland total capital ratio of 9.5% and 15.2%, respectively at end-September 2010.The change in the Sovereign's ratings could affect KTB's Long- andShort-term ratings, which are underpinned by government support.The Individual Rating could be upgraded by a sustained improvementin the bank's profitability and asset quality as well as themaintenance of strong capital. The Individual Rating could bedowngraded by a significant deterioration in these measures.KTB's debt and hybrid security ratings are consistent withrelevant criteria, and Fitch notes that these instruments areperforming. The hybrid Tier 1 security ratings are rated twonotches below the bank's implied unsupported IDR and unsupportedNational Long-term rating based on the bank's stand-alonefinancial strength, particularly its strong capital and largeretained earnings (THB54.8bn at end-September 2010); these are keyconsiderations for BOT to approve coupon payments, even if thebank reports a loss (which is a potential trigger for coupondeferral). The notching difference could therefore widen, shouldthese factors significantly weaken, especially if the BOT were toindicate it may not approve such coupon payments in the event thebank reports a loss.KTB's ratings have been affirmed: -- Long-term foreign currency Issuer Default Rating at 'BBB' with Stable Outlook; -- Short-term foreign currency IDR at 'F3'; -- Individual at 'C/D'; -- Support at '2'; -- Foreign currency subordinated debt rating at 'BBB-'; -- Support Rating Floor at 'BBB'; -- Foreign currency offshore hybrid Tier 1 securities at 'BB'; -- National Long-term rating at 'AA+(tha)' with Stable Outlook; -- National Short-term rating at 'F1+(tha)'; -- National subordinated debt rating at 'AA(tha)'; -- National rating on domestic hybrid Tier 1 securities at 'A(tha)';===============X X X X X X X X===============* Upcoming Meetings, Conferences and Seminars---------------------------------------------Nov. 29, 2010 RENAISSANCE AMERICAN MANAGEMENT, INC. & BEARD GROUP, INC. 17th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York City Contact: 1-903-595-3800; http://www.renaissanceamerican.com/Dec. 9-11, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, a JW Marriott Resort & Spa, Scottsdale, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE 22nd Annual Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/January 26-28, 2011 TURNAROUND MANAGEMENT ASSOCIATION TMA Distressed Investing Conference Aria Las Vegas Contact: http://www.turnaround.org/Jan. 27-28, 2011 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colo. Contact: 1-703-739-0800; http://www.abiworld.org/Feb. 3-5, 2011 AMERICAN BANKRUPTCY INSTITUTE Caribbean Insolvency Symposium Westin Casuarina Resort & Spa, Grand Cayman Island Contact: 1-703-739-0800; http://www.abiworld.org/Feb. 24-25, 2011 AMERICAN BANKRUPTCY INSTITUTE Valcon Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/Mar. 4, 2011 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Hyatt Regency Century Plaza, Los Angeles, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/Mar. 7-9, 2011 AMERICAN BANKRUPTCY INSTITUTE Conrad Duberstein Moot Court Competition Duberstein U.S. Courthouse, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/Mar. 10, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - Florida Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/Mar. 10-12, 2011 AMERICAN BANKRUPTCY INSTITUTE SUCL/ Alexander L. Paskay Seminar on Bankruptcy Law and Practice Marriott Tampa Waterside, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/Mar. 17-19, 2011 AMERICAN BANKRUPTCY INSTITUTE Byrne Judicial Clerkship Institute Pepperdine University School of Law, Malibu, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/Mar. 31-Apr. 3, 2011 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/April 27-29, 2011 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott, Chicago, IL Contact: http://www.turnaround.org/May 5, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - New York City Association of the Bar of the City of New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/May 6, 2011 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference Hilton New York, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/June 6, 2011 AMERICAN BANKRUPTCY INSTITUTE Canadian-American Cross-Border Insolvency Symposium Fairmont Royal York, Toronto, Ont. Contact: 1-703-739-0800; http://www.abiworld.org/June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ *********Tuesday's edition of the TCR-AP delivers a list of indicativeprices for bond issues that reportedly trade well below par.Prices are obtained by TCR-AP editors from a variety of outsidesources during the prior week we think are reliable. Thosesources may not, however, be complete or accurate. The TuesdayBond Pricing table is compiled on the Friday prior topublication. Prices reported are not intended to reflect actualtrades. Prices for actual trades are probably different. Ourobjective is to share information, not make markets in publiclytraded securities. Nothing in the TCR-AP constitutes an offeror solicitation to buy or sell any security of any kind. It islikely that some entity affiliated with a TCR-AP editor holdssome position in the issuers' public debt and equity securitiesabout which we report.A list of Meetings, Conferences and Seminars appears in eachWednesday's edition of the TCR-AP. Submissions about insolvency-related conferences are encouraged. Send announcements firstname.lastname@example.com's edition of the TCR-AP features a list of companies withinsolvent balance sheets obtained by our editors based on thelatest balance sheets publicly available a day prior topublication. At first glance, this list may look like thedefinitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historicalcost net of depreciation may understate the true value of afirm's assets. A company may establish reserves on its balancesheet for liabilities that may never materialize. The prices atwhich equity securities trade in public market are determined bymore 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 NTroubled 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 C. Udtuhan, Marites O. Claro, Rousel Elaine T.Fernandez, Joy A. Agravante, Frauline S. Abangan, and Peter A.Chapman, Editors.Copyright 2010. All rights reserved. ISSN: 1520-9482.This material is copyrighted and any commercial use, resale orpublication in any form (including e-mail forwarding,electronic re-mailing and photocopying) is strictly prohibitedwithout prior written permission of the publishers.Information contained herein is obtained from sources believedto 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 samefirm for the term of the initial subscription or balancethereof are US$25 each. For subscription information, contactChristopher Beard at 240/629-3300. *** End of Transmission ***