MIRA INFORM REPORT

 

 

Report Date :

22.06.2012

 

IDENTIFICATION DETAILS

 

Name :

WESTERN STONE & METAL CORP.

 

 

Formerly Known As :

SHANE CO

 

 

Registered Office :

8085 S Chester Street Suite 300 Centennial CO 80112

 

 

Country :

United States of America

 

 

Date of Incorporation :

01.07.1971

 

 

Com. Reg. No.:

19871270356

 

 

Legal Form :

Corporation

 

 

Line of Business :

Retails Jewelry mainly Precious Jewelry

 

 

No. of Employees :

700

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

 

Status :

Moderate

Payment Behaviour :

Unknown

Litigation :

Clear

 


NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

United States

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company Name & Contact Details

 

 

Verified

 

Company Name:

Western Stone & Metal Corp.

Address:

8085 S Chester Street Suite 300

City:

Centennial

State/province:

CO

Zip/postal code:

80112

Country:

United States of America

Telephone:

+1 (303) 792 - 3500

Remarks:

Company Name was Changed from Shane Co.

Shane Co has Filed for Voluntary Bankruptcy Chapter 11 in January 12 2009 at US Bankruptcy Court, Denver, CO. File No is 09-10367.  Restructuring Plan was comfirmed in November 2010.

 

Credit & Observation

 

Current Credit Observation:  Secured Terms

Analysis

·         Established

·         Restructuring Plan in Effect after Bankruptcy was filed.

·         Debtor to Multiple Secured Creditors

 

Company History

 

 

Capital Stock:

100% by Officers

Business Structure:

Corporation

Business Started:

1971

Management Control:

1971

Line of Business:

Retails Jewelry mainly Precious Jewelry

          Branches: 

Multiple in USA

 

Company Registration & Status

Date registered:

July 1 1971

Legal form:

Corporation

Registration no:

19871270356

Jurisdiction

Colorado

Registry status:

Active and Good Standing

Comments:

Name was Changed from Shane Co. to Western Stone & Metal Corp.

 

 

 

Company Management/Officers

 

No of Employees:

700

Name & Title:

Thomas Shane, President

 

Legal Findings

 

Suits:

None

Court Judgements:

None

NSF Reported:

None

 Liens / Collection:

One in 2007

Security Filings:

51 UCC Filings exist for leased equipment and assets.  These secured creditors would take precedence in the unlikely event of asset liquidation.

 

Trade Payment Experience

 

Date Reported June 2012

High Credit : 50,000

Now Owing : 500

Terms :  Net 30 Days

Past Due 1-30 days – Zero

Past Due 31-60 days – Zero

Past Due 61-90 days – Zero

Payments Made: As Agreed

 

Date Reported May 2012

High Credit : 40,000

Now Owing : 40,000

Terms :  Net 30 Days

Past Due 1-30 days – Zero

Past Due 31-60 days – Zero

Past Due 61-90 days – Zero

Payments Made: As Agreed

 

Date Reported May 2012

High Credit : 30,000

Now Owing : 30,000

Terms :  Net 30 Days

Past Due 1-30 days – Zero

Past Due 31-60 days – Zero

Past Due 61-90 days – Zero

Payments Made: As Agreed

 

 

 

Payment Behaviour:

Business Demonstrates Positive Payment Trend

 DIAMOND INDUSTRY – INDIA

 

-          From time immemorial, India is well known in the world as the birthplace for diamonds.  It is difficult to trace the origin of diamonds but history says that in the remote past, diamonds were mined only in India. Diamond production in India can be traced back to almost 8th Century B.C.  India, in fact, remained undisputed leader till 18th Century when Brazilian fields were discovered in 1725 followed by emergence of S. Africa, Russia and Australia.

-          The achievement of the Indian diamond industry was possible only due to combination of the manufacturing skills of the Indian workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.

-          The area of study of family owned diamond businesses derives its importance from the huge conglomerate of family run organizations which operate in the diamond industry since many generations.

-          Some of the basic traits of family run business enterprises include spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble and quick to react, information as a source of advantage and philanthropy.

-          Family owned diamond businesses need to improve on many fronts including higher standard of corporate governance, long-term performance – focused strategies, modern management and technology.

-          The diamond jewellery industry in India today may be more than Rs 60000 mil and is rated amongst the fastest growing  in the world. Indi ranks third in the world in domestic diamond consumption.

-          Utmost caution is to be exercised while dealing with some medium and large diamond traders which are usually engaged in fictitious import – export, inter-company transactions, financially assisted by banks. In the process, several public sector banks lost several hundred million rupees. They mostly diverted borrowed money for diamond business into real estate and capital markets.

-          Excerpts from Times of India dated 30th October 2010 is as under –

 

DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT

This could be the biggest credibility crisis the Indian diamond industry has ever faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two months ago, they had not repaid  these dues. Bankers believe many diamantaires borrowed money during the economic downturn two years ago and diverted funds to businesses like real estate and capital markets. Many of themselves made money from these businesses but their diamond companies have gone sick and declared insolvency.

-          Most of the money borrowed from the banks in the name of their diamond business has been diverted in real estate and the share market. The banks are not in a position to seize their properties because in many cases, these were purchased in the name of their relatives and friends.

 


Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

Publication date: 05-Aug-2011 20:13:14 EST


 

·        We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.

·         We have also removed both the short- and long-term ratings from CreditWatch negative.

·         The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

·         More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

·         Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

·         The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

 

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

 

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

debt service--remains 'AAA'.