/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/090323.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 Monday, March 23, 2009, Vol. 12, No. 57 Headlines A U S T R A L I A BABCOCK & BROWN: Trust Company to Attend Creditors' Meeting SKYAIRWORLD: Fed Gov't Blamed for Not Conducting Due Diligence H O N G K O N G ADJECTIVE LIMITED: Appoints Briscoe and Meng as Liquidators COME LONG: Court to Hear Wind-Up Petition on April 8 FORTUNE MIND: Court to Hear Wind-Up Petition on April 15 GARWIN INTERNATIONAL: Court to Hear Wind-Up Petition on April 15 GOLDEN JOINT: Court to Hear Wind-Up Petition on May 6 HIP LEE: Court to Hear Wind-Up Petition on April 8 I-STAR CHINA: Creditors' Proofs of Debt Due on March 30 KAM FUNG: Court to Hear Wind-Up Petition on March 25 LLOYDS ARCHITECTURAL ET AL: Court Enters Wind-Up Order PHAROS INTERNATIONAL: Court to Hear Wind-Up Petition on April 8 SANAMA INTERNATIONAL ET AL: Court Enters Wind-Up Order SKY SONIC: Appoints Wai and Fun as Liquidators TAI LIN: Contributories and Creditors to Meet on March 27 THE NEW CHINA ET AL: Members and Creditors to Meet on April 8 WANG KWONG: Court to Hear Wind-Up Petition on May 13 I N D I A AJIT SOLAR: CRISIL Assigns 'BB-' Rating on Rs.285 Mln. Term Loan DADIJI STEELS: CRISIL Rates Rs.35.1 Million Term Loan at 'BB' EASTERN FOODS: CRISIL Puts 'B+' Ratings on Various Bank Facilities HI-TECH PIPES: CRISIL Rates Rs.260.0 Million Cash Credit at 'BB' MAHESH AGRO: Fitch Assigns 'B-' National Long-Term Rating MULTIMETALS LTD: Low Net Worth Cues CRISIL 'BB+' Ratings NAGARJUNA FERTILIZERS: CARE Puts'CARE BB' Rating on LT Bank Loans NEELKAMAL STEELS: CRISIL Places 'B+' Rating on Rs.42.5MM Term Loan RAYANA PAPER: CRISIL Assigns 'B-' Rating on Rs.170.00MM Term Loan I N D O N E S I A PT INDOSAT: Creditor's Consent Won't Affect Moody's 'Ba1' Ratings J A P A N HARVEST TRUST: Moody's Changes Ratings on Various Classes JLOC37 LLC: Fitch Downgrades Ratings on Two Classes of Notes JMAC4 TRUST: Fitch Downgrades Ratings on Two Classes of Notes MAZDA MOTOR: S&P Changes Outlook on 'BB' Rating to Negative K O R E A SAMSUN LOGIX: Voluntary Chapter 15 Case Summary M A L A Y S I A WWE HOLDINGS: High Court to Hear Application for Stay on April 29 N E W Z E A L A N D BAR & BISTRO: Liquidator Wants Company's True Value Paid BLUE CHIP: Parent Firm Ordered to Pay NZ$1,125 for Carpark Rent FIVE MILE: Unsecured Creditors May Not Get Anything NUPLEX INDUSTRIES: Regulators See Possible Disclosure Breach NUPLEX INDUSTRIES: To Raise NZ$132.8 Million Through Rights Issue S O U T H A F R I C A SUPER GROUP: Fitch Changes Watch on 'Bb' Rating to Evolving - - - - - ================= A U S T R A L I A ================= BABCOCK & BROWN: Trust Company to Attend Creditors' Meeting ----------------------------------------------------------- Fiona Robertson at The National Business Review reports the trustee for Babcock & Brown Ltd subordinated noteholders will act on their behalf at the company's first creditors' meeting, despite having been previously unwilling to provide guidance for investors. According to the report, Trust Company Fiduciary Services (formerly known as Permanent Trustee Company), has told Babcock administrators Deloitte Touche Tohmatsu that it now acts as creditor, on behalf of noteholders themselves. Deloitte has confirmed the trust deed gives Trust Company a legal obligation to act on behalf of creditors, the report says. The first meeting for creditors, which are primarily noteholders, has been set down for March 25, according to The Australian. As reported in the Troubled Company Reporter-Asia Pacific on March 13, 2009, Babcock & Brown appointed voluntary administrators after investors in the company's subordinated notes listed in New Zealand voted on March 13 against the special resolution to restructure the terms of the notes. Under the special resolution, the company's equity and subordinated note holders won't receive any return. Babcock & Brown appointed David Lombe and Simon Cathro of Deloitte Touche Tohmatsu as Voluntary Administrators. About Babcock & Brown Headquartered in Sydney, Australia, Babcock & Brown Limited (ASX:BNB) -- http://www.babcockbrown.com/-- creates, syndicates and manages investment products for itself, as a principal, and its investor clients; management of specialised listed and unlisted funds, and advising and arranging leasing, project financing and structured finance transactions. It has five segments: real estate, which engages in principal investment and investment management activities in the real estate sector; infrastructure, which engages in financial advisory, principal finance and funds management activities in the infrastructure and project finance sector; corporate and structured finance, which is engaged in the origination, structuring and participation in and management of equity and debt investments, and operating leasing, which is engaged in asset acquisition and syndication, and ongoing management of portfolios of aircraft, railcars and semi-conductor equipment. In October 2007, it acquired Bluewater. In November 2007, it acquired Coinmach Service Corp. * * * As reported by the Troubled Company Reporter-Asia Pacific on November 25, 2008, Standard & Poor's Ratings Services lowered its long-term issuer credit rating on Australia-based Babcock & Brown International Pty Ltd. to 'CC' from 'CCC+', following disclosure of a dispute relating to the release of a deposit with a bank. The short-term rating remains on 'C', and the long-term and the short-term ratings remain on CreditWatch with negative implications, where they were initially placed on Nov. 10, 2008. The CreditWatch negative reflects that the rating on BBIPL is expected to be lowered to 'D' if the worsening liquidity problems lead to a default. The rating is also likely to be lowered to 'D' if BBIPL fails to meet its AU$3.1 billion corporate facilities' financial covenants and the banks accelerate payments under the facilities, or if a facility is restructured in such a way that is deemed by Standard & Poor's as a distressed exchange. For example, a restructure could result in lenders not receiving appropriate compensation. S&P notes that Babcock & Brown intends to negotiate with its lenders for amendments in the corporate bank facilities. Babcock & Brown International Pty Ltd. is the holding company of Babcock & Brown Limited. SKYAIRWORLD: Fed Gov't Blamed for Not Conducting Due Diligence -------------------------------------------------------------- Steve Creedy at The Australian reports anger is mounting over the federal Government's handling of the SkyAirWorld contract to service the Christmas and Cocos islands. According to the report, the Nationals have raised questions about the due diligence carried out by the Attorney-General's Department when it awarded the contract to the Brisbane-based carrier. The report says government officials reassured the public earlier this month that SkyAirWorld's contract would go ahead despite the fact that the airline at that stage had stopped flying after losing three of its five jets and announcing it would axe 40 jobs. Nationals deputy leader and Northern Territory senator Nigel Scullion, as cited by the report, said the whole situation had been abysmally managed by the federal Government noting it was obvious that the bureaucrats who negotiated the contract had not done sufficient due diligence and looked at the financial probity of SkyAirWorld. Citing The Australian in an earlier report, the Troubled Company Reporter-Asia Pacific on Mar. 19, 2009, said Queensland carrier SkyAirWorld collapsed, owing creditors more than AU$40 million and left 140 staff with little chance of getting their full entitlements. According to a report posted in Watoday.com.au, the carrier called in a voluntary administrator, Peter Lucas, just days after GE Capital's aircraft leasing arm, GECAS, repossessed the carrier's five Embraer aircraft. In February, Watoday.com.au said, SkyAirWorld sacked 40 staff from its 140 workforce and grounded three of its five aircraft. The carrier, Watoday.com.au said, will almost certainly not fly again as its only remaining assets include tools, spare parts and an air operator's certificate. Mr. Lucas, as cited by the Australian, said a party was interested in the company's remaining assets. Backed by Australian, New Zealand and British businessmen, Watoday.com.au said SkyAirWorld began flying three years ago with the aim of tapping the mining industry's demand for charter flights to the outback. It later began commercial flights within Queensland and between Brisbane and Honiara, capital of the Solomon Islands, according to Watoday.com.au. ================ H O N G K O N G ================ ADJECTIVE LIMITED: Appoints Briscoe and Meng as Liquidators ----------------------------------------------------------- On November 10, 2008, Stephen Briscoe and Wong Teck Meng of Briscoe & Wong Limited were appointed as liquidators of Adjective Limited. The Liquidators can be reached at: Stephen Briscoe Wong Teck Meng Briscoe & Wong Limited Wing on House 1801, 18th Floor 71 Des Voeux Road Central Hong Kong COME LONG: Court to Hear Wind-Up Petition on April 8 ---------------------------------------------------- A petition to have Come Long Fashion Knits Limited's operations wound up will be heard before the High Court of Hong Kong on April 8, 2009, at 9:30 a.m. Chan Wai Nga filed the petition against the company on Feb. 4, 2009. FORTUNE MIND: Court to Hear Wind-Up Petition on April 15 -------------------------------------------------------- A petition to have Fortune Mind Transportation Co. Limited's operations wound up will be heard before the High Court of Hong Kong on April 15, 2009, at 9:30 a.m. Law Yeung Chan filed the petition against the company on Feb. 11, 2009. GARWIN INTERNATIONAL: Court to Hear Wind-Up Petition on April 15 ---------------------------------------------------------------- A petition to have Garwin International Limited's operations wound up will be heard before the High Court of Hong Kong on April 15, 2009, at 9:30 a.m. Sham Tseng Chan Kee Roasted Goose Company Limited filed the petition against the company on Feb. 3, 2009. The Petitioner's solicitors are: Li, Wong, Lam & W.I. Cheung One Pacific Place Suites 908-910, 9th Floor 88 Queensway Hong Kong GOLDEN JOINT: Court to Hear Wind-Up Petition on May 6 ----------------------------------------------------- A petition to have Golden Joint Steel Company Limited's operations wound up will be heard before the High Court of Hong Kong on May 6, 2009, at 9:30 a.m. Contrive Company (H.K.) Limited filed the petition against the company on Feb. 27, 2009. The Petitioner's solicitors are: Fong Yin Cheung & Co. Prince's Building Suite 1432, 14th Floor 10 Chater Road, Central Hong Kong HIP LEE: Court to Hear Wind-Up Petition on April 8 -------------------------------------------------- A petition to have Hip Lee Company Limited's operations wound up will be heard before the High Court of Hong Kong on April 8, 2009, at 9:30 a.m. Lau Wing Ching filed the petition against the company on Feb. 4, 2009. I-STAR CHINA: Creditors' Proofs of Debt Due on March 30 ------------------------------------------------------- The creditors of I-Star China Limited are required to file their proofs of debt by March 30, 2009, to be included in the company's dividend distribution. The company's liquidators are: Cosimo Borrelli Kelvin Edward Flynn Admiralty Centre 1401, Level 14, Tower 1 18 Harcourt Road Hong Kong KAM FUNG: Court to Hear Wind-Up Petition on March 25 ---------------------------------------------------- A petition to have Kam Fung Furniture International Limited's operations wound up will be heard before the High Court of Hong Kong on March 25, 2009, at 9:30 a.m. Burwill Steel Pipes Limited filed the petition against the company on Jan. 15, 2009. Burwill Steel's solicitors are: Hampton, Winter and Glynn Printing House, 20th Floor No. 6 Duddell Street, Central Hong Kong LLOYDS ARCHITECTURAL ET AL: Court Enters Wind-Up Order ------------------------------------------------------ The High Court of Hong Kong entered an order to wind up the operations of: -- Lloyds Architectural & Engineering Consultants Limited on March 2, 2009; -- Watery Ocean Restaurant Company Limited on Feb. 25, 2009. Stephen Briscoe and Wong Teck Meng were appointed as the companies' liquidators. PHAROS INTERNATIONAL: Court to Hear Wind-Up Petition on April 8 --------------------------------------------------------------- A petition to have Pharos International Limited's operations wound up will be heard before the High Court of Hong Kong on April 8, 2009, at 9:30 a.m. Ma Ka Hay Chloe filed the petition against the company on Feb. 2, 2009. SANAMA INTERNATIONAL ET AL: Court Enters Wind-Up Order ------------------------------------------------------ The High Court of Hong Kong entered an order to wind up the operations of: -- Sanama International Limited on March 4, 2008; -- Kwan Lik Engineering (Asia) Limited on March 4, 2008; -- Cheung Wo Industrial Limited on September 4, 2008; -- Richmond Engineering Limited on July 15, 2008; -- Semax International Limited on September 4, 2008; -- Wing Hang Mechanic Company Limited on Sept. 4, 2008; -- Hanbo Engineering Limited on March 4, 2008; -- Q10 Asia Limited on June 11, 2008; -- Blessearn Limited on July 15, 2008; -- Ever Success (H.K.) Limited on June 19, 2008; -- Link Printing Eqipment Company Limited on June 11, 2008; -- Oriental Crystal Finance Company Limited on Sept. 4, 2008; -- A & G Promotions (HK) Limited on May 22, 2008; and -- Topasia Management Limited on May 19, 2008. Chan King Hang Danvil and Chan Man Yiu are the companies' liquidators. SKY SONIC: Appoints Wai and Fun as Liquidators ---------------------------------------------- On February 23, 2009, Li Man Wai and Tsang Lai Fun were appointed as liquidators of Sky Sonic Development Limited. The Liquidators can be reached at: Li Man Wai Tsang Lai Fun Raymond Li & Co., CPA Tai Yau Building, Room 1001, 10th Floor Wanchai, Hong Kong Telephone: (852) 2889 8833 Facsimile: (852) 2889 8433 TAI LIN: Contributories and Creditors to Meet on March 27 --------------------------------------------------------- The contributories and creditors of Tai Lin Radio Service Limited will hold their meetings on March 27, 2009, at 3:00 p.m. and 3:30 p.m., respectively, at the Auditorium in Duke of Windsor Social Service Building, 15 Hennessy Road, in Wanchai, Hong Kong. THE NEW CHINA ET AL: Members and Creditors to Meet on April 8 ------------------------------------------------------------- On April 8, 2009, an annual meetings will be held at Room 203 of Duke of Windsor Social Service Building, No. 15 Hennessy Road, in Wanchai, Hong Kong, for the members and creditors: -- The New China Hong Kong Capital Limited; -- The New China Hong Kong Finance Limited; and -- The New China Hong Kong Group Limited. WANG KWONG: Court to Hear Wind-Up Petition on May 13 ---------------------------------------------------- A petition to have Wang Kwong Group Limited's operations wound up will be heard before the High Court of Hong Kong on May 13, 2009, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on Feb. 26, 2009. The Petitioner's solicitors are: ONC Lawyers The Bank of East Asia Building, 15th Floor 10 Des Voeux Road Central Hong Kong ========= I N D I A ========= AJIT SOLAR: CRISIL Assigns 'BB-' Rating on Rs.285 Mln. Term Loan ---------------------------------------------------------------- CRISIL has assigned its ratings of 'BB-/Stable/P4' to Ajit Solar Pvt Ltd's (Ajit Solar's) bank facilities. Rs.29.5 Million Cash Credit BB-/Stable (Assigned) Rs.285 Million Term Loan BB-/Stable (Assigned) Rs.70.5 Million Packing Credit P4 (Assigned) Rs.45 Million Letter of Credit P4 (Assigned) Rs.11.3 Million Bank Guarantee P4 (Assigned) The ratings reflect the price volatility and intense competition in the photo-voltaic (PV) industry, and the promoters' lack of experience in high-technology manufacturing business. These weaknesses are mitigated by the company's choice of a proven production process, procured from a reputed supplier. Outlook: Stable CRISIL believes that Ajit Solar is presently in the process of completing the installation of the production line sourced from Schmid Technology Systems GmbH, Germany, the world leader in PV manufacturing machinery. The outlook may be revised to 'Positive' if the project is commissioned on schedule, and if the company bags long-term contracts, leading to good revenues at stable operating margins. Conversely, the outlook may be revised to 'Negative' in case of cost overruns or delays in project implementation, or lower-than-expected profitability. About Ajit Solar Ajit Solar was incorporated in 2007 by Mr. Ajit Singh Gehlot, who runs many automobile dealerships in the Alwar region of Rajasthan. The company is setting up a 20-megawatts (MW) PV production line, entailing an investment of about Rs.400 million. The manufacturing unit will produce solar panels and modules using PV cells as the primary raw material. The company has acquired land near Jaipur and has also constructed the factory building. The production line has been sourced from Schmid. The line is under installation and is expected to be commissioned by end of February 2009. DADIJI STEELS: CRISIL Rates Rs.35.1 Million Term Loan at 'BB' ------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to the various bank facilities of Dadiji Steels Ltd (Dadiji). Rs.57.4 Million Cash Credit * BB/Stable (Assigned) Rs.35.1 Million Term Loan BB/Stable (Assigned) Rs.7.5 Million Standby Line P4 (Assigned) of Credit * Includes proposed limit of Rs.7.4 Millions. The ratings reflect Dadiji's marginal market share in the steel industry, limited backward integration initiatives, and exposure to risks relating to cyclicality in the steel industry. These weaknesses are, however, partially offset by the benefits that Dadiji derives from the experience of its promoters, and its average business risk profile. Outlook: Stable CRISIL believes that Dadiji will maintain a stable business risk profile. The outlook may be revised to 'Positive' if the company reports strong growth in revenues or undertakes initiatives relating to integration of operations. Conversely, the outlook may be revised to 'Negative' if inability to fully utilise capacity results in deterioration in operating margins. About Dadiji Steels Dadiji, incorporated in 1996 by Mr. R C Gupta and Mr. Binay Kumar Singh, manufactures mild-steel rods, thermo-mechanically treated (TMT) bars, channels and other structural items. The company currently has an induction furnace capacity of 44,000 tonnes per annum (tpa) for ingots. The TMT bar manufacturing facility has a capacity of 37,200 tpa. For 2007-08 (refers to financial year, April 1 to March 31), Dadiji reported a profit after tax (PAT) of Rs.24 million on net sales of Rs.1003 million, as against a PAT of Rs.18 million on net sales of Rs.850 million for 2006-07. EASTERN FOODS: CRISIL Puts 'B+' Ratings on Various Bank Facilities ------------------------------------------------------------------ CRISIL has assigned its ratings of 'B+/Stable' to the various bank facilities of Eastern Foods Pvt Ltd (EFPL), which is part of the Eastern group. Rs.93.3 Million Cash Credit Limits B+/Stable (Assigned) Rs.26.7 Million Term Loan B+/Stable (Assigned) The ratings reflect EFPL's weak financial risk profile, and exposure to risks relating to the highly fragmented nature of the food products industry, small scale of operations, and dependence on agriculture produce for raw materials. However, these weaknesses are partially offset by EFPL's moderate business risk profile. As part of this rating exercise, CRISIL has combined the business and financial risk profiles of EFPL and Eastern Roller Flour Mills Pvt Ltd (ERFM), together referred to as the Eastern group. This is because both companies have a common management, and similar product profiles and brand; moreover, the management proposes to merge the two entities over the medium term. Outlook: Stable CRISIL believes that the Eastern group will continue to benefit from its average business risk profile. The outlook may be revised to 'Positive' if there is significant improvement in the group's operating margins or net worth. Conversely, deterioration in the group's financial risk profile may prompt a revision in outlook to 'Negative'. About Eastern Foods EFPL, set up as a partnership firm in 1999, became a private limited company in 2006. The company undertakes production of white flour, whole wheat atta, suji (semolina) and bran in its wheat division and raw and parboiled rice in the rice division. It has an installed capacity of 120 tonnes per day (tpd) in the wheat division and 200 tpd in the rice division. ERFM, established in 1988, has wheat milling capacities of 150 tpd. For 2007-08, (refers to financial year, April 1 to March 31) Eastern Group reported a profit after tax (PAT) of Rs.6 million on net sales of Rs.1062 million, as against a PAT of Rs.3 million on net sales of Rs.876 million for 2006-07. HI-TECH PIPES: CRISIL Rates Rs.260.0 Million Cash Credit at 'BB' ---------------------------------------------------------------- CRISIL has assigned its ratings of 'BB/Stable/P4' to the various bank facilities of Hi-Tech Pipes Ltd (Hi-Tech). Rs.260.0 Million Cash Credit BB/Stable (Assigned) Rs.40.0 Million Term Loan BB/Stable (Assigned) Rs.30.0 Million Stand by Line BB/Stable (Assigned) of Credit Rs.150.0 Million Letter of Credit P4 (Assigned) Rs.30.0 Million Bank Guarantee P4 (Assigned) Rs.10.0 Million Foreign Bill P4 (Assigned) Purchase The ratings reflect Hi-Tech's weak financial risk profile, and exposure to risks relating to its small scale of operations in a highly competitive industry, and to regional concentration. These weaknesses are, however, partially offset by the company's diversified revenue profile, and extensive track record in the pipes segment. Outlook: Stable CRISIL expects Hi-Tech Pipes Ltd (Hi-Tech) to maintain its moderate business and financial risk profiles. The company is expected to operate with moderate capital structure. The outlook may be revised to 'Positive' if the company consolidates its presence in electronic resistance and welded (ERW) pipes by entering new markets, leading to substantial improvement in realisations and profitability. Conversely, the outlook may be revised to 'Negative' if the company takes on large debt, thereby straining its capital structure. About Hi-Tech Pipes Set up in 1986 by Mr. H L Bansal, Hi-Tech is an ISO-9001 certified company, manufacturing ERW pipes. It has capacity to manufacture 50,000 tonnes of ERW pipes, 77,000 tonnes of cold-rolled and galvanised coils, and 30,000 tonnes of mild steel flats at its facilities in Secunderabad. For 2007-08, (refers to financial year, April 1 to March 31), Hi-Tech reported a profit after tax (PAT) of Rs.23 million on net sales of Rs. 2720 million, as against a PAT of Rs. 20 million on net sales of Rs. 2507 million for 2006-07. MAHESH AGRO: Fitch Assigns 'B-' National Long-Term Rating --------------------------------------------------------- Fitch Ratings has assigned India's Mahesh Agro Private Limited a National Long-term rating of 'B-(ind)' (B minus(ind)). Simultaneously, the agency has assigned ratings of 'B-(ind)' (B minus(ind))/F4(ind)' to MAPL's fund based working capital limits amounting to INR450m, and 'F4(ind)' to its non-fund based working capital limits amounting to INR300m. The Outlook is Stable. The assigned ratings reflect MAPL's diversified presence in unrelated sectors exposing it to volatility in revenues and profitability. The company's revenues have oscillated during FY04-FY08, ranging between a low of INR1188 million in FY07 to a high of INR2231 million in FY04. Concerns also emanate from MAPL's low profitability, irregular working capital cycle, high leverage levels and low coverage ratios. The Op. EBITDA margins have remained below 2% during FY04-FY08, and the net margins were range bound between 0.19%-0.25%. The ratings are also undermined by the company's exposure to forex related risk and regulations relating to exports and imports. During FY04-FY08, forex fluctuation contributions ranged between negative INR19.525 million in FY05 to INR7.376 million in FY04. The ratings find support in MAPL's flexibility to adapt to market conditions, as shown in the past, by changing the mix of commodities traded, the experience of the promoters in this trade and the low exit barriers involved in the nature of its business. A significant improvement in profitability and financial leverage, and sustained stability in revenues could be positive ratings triggers. Any further deterioration in profitability margins, leverage levels or coverage ratios, and adverse government's regulations impacting MAPL's trade could act as negative ratings triggers. For the year ending March 2008, MAPL earned INR1924.64 million in revenues with its EBITDA and Net Income at INR36.08 million and INR4.05 million, respectively. The company's profitability as measured by Operating EBITDA and net income margins stood at 1.87% and 0.2%, respectively. It had a total debt of INR256.83 million in FY08, and its financial leverage computed as Total Adjusted Debt Net of Cash/Op. EBITDAR equaled 7.1x. The coverage ratio as computed as Op. EBITDAR/Net Interest measured 1.2x. MAPL is a privately-held company involved primarily in the trade of agricultural commodities, kerosene oil, fuel oil and other chemicals. The customers primarily include retail traders, exporters and manufacturers of food grains and edible oil. MULTIMETALS LTD: Low Net Worth Cues CRISIL 'BB+' Ratings -------------------------------------------------------- CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank facilities of Multimetals Ltd (MML). Rs.160 Million Cash Credit Limit BB+/Stable (Assigned) Rs.22 Million Working Capital BB+/Stable (Assigned) Demand Loan Rs.220 Million Letter of Credit P4 (Assigned) The ratings reflect the company's constrained financial risk profile on account of its low net worth and high gearing, and susceptibility of its margins to fluctuations in prices of copper. The increasing use of aluminium and other alloys in place of copper also poses a substitution threat to the copper tube industry especially at the time of high copper prices. These weaknesses are partially mitigated by the company's enhanced end- user diversity on account of improving presence in the export market. Outlook: Stable CRISIL believes that MML will maintain its existing business risk profile, backed by its improving presence in export markets. The outlook may be revised to 'Positive' if the company's net-worth improves because of any equity infusions by the promoters, or if there is a substantial increase in its revenues and profitability. Conversely, the outlook may be revised to 'Negative' in case of a decline in MML's margins or cash flows, or if the company's capital structure deteriorates, due to any large debt-funded capital expenditure. About Multimetals Ltd MML's current promoters, Mr. Vasudev Agrawal and Mr. Rajendra Agrawal, acquired the company in 2004-05 (refers to financial year, April 1 to March 31) from Mr. P R Damani and Mr. N R Damani (Damani group). MML has a 3000 tonnes per annum (tpa) capacity for production of copper and copper alloy tubes from copper billets/ingots in Kota, Rajasthan. For 2007-08, MML reported a profit after tax (PAT) of Rs.46 million on net sales of Rs.1.16 billion, as against a PAT of Rs.30.8 million on net sales of Rs.1.11 billion for the previous year. NAGARJUNA FERTILIZERS: CARE Puts'CARE BB' Rating on LT Bank Loans ----------------------------------------------------------------- CARE has assigned a 'CARE BB' (Double B) rating to the long-term bank facilities and 'PR4' (PR four) rating to the short term bank facilities of Nagarjuna Fertilizers & Chemicals Ltd. (NFCL) aggregating Rs.1,182.54 cr. CARE has also assigned a 'CARE BB-' (Double B Minus) rating to the outstanding (Rs.24.39 cr) redeemable preference shares of the company. The ratings factor in NFCL's track record of operations in the Urea business and satisfactory operating performance in the last few years. However, the ratings are constrained by the company's large investments in long gestation projects, which have been much delayed. NFCL's investments in these projects have been a strain on its financial position and still account for a substantial portion of its tangible networth. The ratings also factor in the regulatory environment surrounding the fertilizer sector. NFCL, promoted by Late Shri. K.V.K. Raju, operates two urea plants (1,500 T/day each) at Kakinada, Andhra Pradesh. It also trades in Urea (Government pool urea), other fertilisers and agri-inputs. NFCL consistently registered over 100% capacity utilizations for the last three financial years, upto FY08. During FY08, the company's plants produced 13.54 lakh ton of urea as against 13.24 lakh ton for FY07 (marginal growth of 2%). This represents a capacity utilization of 113%(based on reassessed capacity). Urea sales account for largest portion of NFCL's income. Urea sales increased from Rs.1,346 cr in FY06 to Rs.1,495 cr in FY08. The increase in sales was primarily because of the increase in the subsidy payout on account of the rising feedstock prices. PBIDT margins have remained in the 19-21% range in the last three financial years. NFCL reported a PAT of Rs.22 cr in FY08. NFCL's higher interest costs and discount/mark to market provision on fertilizer bonds during FY08 had an impact on the overall profits. Overall gearing as on March 31 2008 was high at 1.70x. However, adjusting for NFCL's exposure to non-operational subsidiaries gearing will be substantially higher. Interest coverage for FY08 was 1.12x. During the nine-month period ended Dec.31, 2008. NFCL reported a Total operating income of Rs.1,497 cr and a PAT of Rs.20 cr. Going forward, while the demand for fertilisers is likely to go up with the increased thrust on agricultural growth in the country, the fortunes of the individual units in the sector will continue to depend largely on the polices of the Government for the sector. NFCL, in line with the Government policy of utilizing gas as a feedstock for the fertilizer units, plans to utilize the additional gas, likely to be made available from the Krishna Godavari basin. To help utilize the gas that is likely to be available, NFCL is implementing a project for installation of 450 ton per day CO2 recovery plant. This together with the implementation of debottlenecking and energy saving devices is expected to enhance the capacity by over 2 lakh Mts per annum. Ability of the company to implement these projects in a timely manner will ensure effective utilization of the gas and the additional production will also be entitled to incentives linked to the import parity price. Moreover, NFCL's ability to exit from JESCO (Jaiprakash Engineering & Steel Company) as planned and timely implementation of the NOCL project with no additional outflow from NFCL would be key to its long term sustainability. NEELKAMAL STEELS: CRISIL Places 'B+' Rating on Rs.42.5MM Term Loan ------------------------------------------------------------------ CRISIL has assigned its ratings of 'B+/Stable' to the various bank facilities of Neelkamal Steels Pvt Ltd (Neelkamal). Rs.37.5 Million Cash Credit B+/Stable (Assigned) Rs.42.5 Million Term Loan B+/Stable (Assigned) The ratings reflect Neelkamal's marginal market share in the steel industry, small scale of operations, low net worth, and exposure to risks relating to cyclicality in the steel industry. These weaknesses are, however, partially offset by Neelkamal's moderate business risk profile. Outlook: Stable CRISIL believes that Neelkamal will maintain a stable business risk profile. The outlook may be revised to 'Positive' if the company reports improved revenues and profitability, or launches initiatives to enhance the level of integration in its operations. Conversely, the outlook may be revised to 'Negative' if the company undertakes large debt-funded capital expenditure (capex). About Neelkamal Steels Neelkamal, incorporated in 2005, began commercial production of thermo-mechanically treated (TMT) bars in August 2006. The company has launched a capex programme to double its capacity to 60,000 tonnes per annum. Its sells TMT bars under the Neelkamal brand in Bihar and Uttar Pradesh. For 2007-08 (refers to financial year, April 1 to March 31), Neelkamal reported a profit after tax (PAT) of Rs.12.1 million on net sales of Rs.288.7 million, as against a PAT of Rs.2 million on net sales of Rs.119.2 million for 2006-07. RAYANA PAPER: CRISIL Assigns 'B-' Rating on Rs.170.00MM Term Loan ----------------------------------------------------------------- CRISIL has assigned its ratings of 'B-/Negative' to the various bank facilities of Rayana Paper Board Industries Ltd (Rayana). Rs.100.00 Million Cash Credit Limit B-/Negative (Assigned) Rs.170.00 Million Term Loan B-/Negative (Assigned) The ratings reflect Rayana's small scale of operations and weak financial risk profile. These weaknesses are, however, partially offset by the established track record of Rayana's promoter in the paper manufacturing business. Outlook: Negative CRISIL believes that Rayana's financial risk profile will continue to remain stretched because of insufficient cash accruals to service the maturing term debt obligations. The rating can be downgraded in case of more than expected deterioration in operating profitability leading to less than expected cash accrual. The outlook may be revised to 'Stable' if Rayana's operating margins improve following commissioning of its new captive power plant and W&P Paper division, backed by the strong sales growth. About Rayana Incorporated in 1986, Rayana began production in 1989. It manufactures industry paper (kraft paper and duplex boards) and Writing & Printing Paper (WPP) at its two units at Gorakhpur (Uttar Pradesh); Unit I manufactures industry paper from agro waste, while the recently-installed Unit II manufactures WPP. The company also has a 3 mega watt (MW) captive power plant. For 2007-08, (refers to financial year, April 1 to March 31) Rayana reported a net loss of Rs.32.5 million on net sales of Rs.215.6 million, as against a profit after tax (PAT) of Rs.5.4 million on net sales of Rs.199.8 million for 2006-07. ================= I N D O N E S I A ================= PT INDOSAT: Creditor's Consent Won't Affect Moody's 'Ba1' Ratings ----------------------------------------------------------------- Moody's Investors Service has said that PT Indosat Tbk's announcement that it intends to solicit consent from creditors to loosen the Debt/Equity covenant and liken the financial definitions of the covenants across the company's different debt instruments, will have no immediate impact on Indosat's Ba1 local currency corporate family and Ba2 senior unsecured ratings. Moody's notes that no consent will be solicited on the US$234.7 million 7.75% bonds due 2010 issued by Indosat Finance Company B.V. (rated Ba2), or on the US$109.4 million 7.125% bonds due 2012 issued by Indosat International Finance Company B.V. (rated Ba2). Under the proposed covenant amendment, the Debt/Equity covenant will be increased from the current level of 1.75x to 2.50x. Moody's notes that the amendment will provide the company with flexibility against non-cash losses resulting from potential rapid and volatile changes in the Rupiah/US$ exchange rate. Although currently less than half of the company's debt is US$ denominated and 52% of this amount is hedged, the covenant calculation excludes the impact of the offsetting hedge position. The company could therefore be exposed to reduced headroom under the covenant in the event of a rapid and sudden depreciation of the Rupiah against the US$. "Although the covenant amendment would effectively allow Indosat to incur greater leverage, Moody's expects the company to remain committed to its existing financial policies, and maintain Total Debt/Equity within 1.5x (assuming minimal volatility in the foreign exchange rate)," says Ivan Palacios, a Moody's AVP/Analyst. "In addition, Moody's derives comfort from the fact that the more restrictive maintenance covenants -- such as Debt/EBITDA below 3.5x and EBITDA interest coverage above 3.0x -- will remain in place and will not be amended," adds Palacios. Therefore, it is Moody's expectation that the company will continue to operate under a conservative financial framework, as reflected in its financial ratios for the year ended December 2008, of Adjusted debt/EBITDA of 2.4x and Adjusted EBITDA interest coverage of 5.2x. The last rating action with respect to Indosat was taken on October 6, 2008, when the company's ratings were confirmed with a stable outlook. Indosat is a fully-integrated telecommunications network and services provider in Indonesia. The company is the second largest cellular operator in the country, as well as its leading provider of international call services. It also provides multi-media, data communications, and internet services. ========= J A P A N ========= HARVEST TRUST: Moody's Changes Ratings on Various Classes --------------------------------------------------------- Moody's Investors Service has changed the ratings of the Class D through G trust certificates of Harvest Trust. The final maturity of the certificates will take place in October 2012. The rating actions follow: -- Class D: Placed Under Review for Possible Downgrade; previously on September 28, 2007 Assigned Baa2 -- Class E: Placed Under Review for Possible Downgrade; previously on September 28, 2007 Assigned Baa3 -- Class F: Downgraded to B2 from Ba2 and placed under review for possible downgrade; previously, Ba2 had been placed under review for possible downgrade on December 26, 2008 -- Class G: Downgraded to Caa3 from B3; previously, Ba3 downgraded to B3 and placed under review for possible downgrade on December 26, 2008 Harvest Trust, effected in September 2007, represents the securitization of eight non-recourse loans and three specified bonds. Two of the non-recourse loans and one of the specified bonds have been paid in full, and one non-recourse loan was partially paid on the maturity date. The transaction is currently secured by six non-recourse loans (one non-recourse loan has been placed under special servicing) and two specified bonds backed by 15 properties. The rating actions on December 26, 2008 reflected the need to reconsider initial assumptions about collateral recovery, as one non-recourse loan had been placed under special servicing. Moody's has now downgraded the ratings of the Class F through G trust certificates, and continues its review of the rating of the Class F trust certificate for possible downgrade. Moody's has placed the ratings of the Class D through E trust certificates under review for possible downgrade as well. Currently, the Trustee and the Servicer are managing the disposition of the collateral for the specially serviced loan under instructions from the senior trust beneficiaries; however, the recovery from the collateral is likely to be lower than the remaining principal balance. These actions reflect Moody's growing concerns about the collateral recovery of the specially serviced loan. Moody's will closely monitor the collecting process of the specially serviced loan, as well as the payments at maturity and the collateral recovery of the remaining non-recourse loans and specified bonds, to decide whether to confirm or downgrade the ratings. Moody's Investors Service is a publisher of rating opinions and research. It is not involved in the offering or sale of any securities, nor is it acting on behalf of the offering party. This release is not a solicitation or a recommendation to buy, hold, or sell securities. JLOC37 LLC: Fitch Downgrades Ratings on Two Classes of Notes ------------------------------------------------------------ Fitch Ratings has downgraded two classes of JLOC37, LLC notes due January 2015 and maintained Rating Watch Negative on both. Two other classes have also been placed on RWN. The remaining classes of notes have been affirmed and the outlooks on these are Stable. The full list of rating actions is: -- JPY34,706,380,000*, Class A1 Notes affirmed at 'AAA'; Outlook Stable; -- EUR7,805,478*, Class A2 Notes affirmed at 'AAA'; Outlook Stable; -- JPY5,320,650,000*, Class B1 Notes affirmed at 'AA'; Outlook Stable; -- EUR 3,266,476*, Class B2 Notes affirmed at 'AA'; Outlook Stable -- JPY 4,714,500,000*, Class C1 Notes 'A'; placed on RWN; -- EUR 5,691,077*, Class C2 Notes 'A'; placed on RWN ; -- JPY 5,388,000,000*, Class D1 Notes downgraded to 'B-' (B minus) from 'BBB'; remains on RWN; -- EUR1,313,325*, Class D2 Notes downgraded to 'B-' (B minus) from 'BBB'; remains on RWN; -- Interest-only classes X Notes affirmed at 'AAA'; Outlook Stable. As of March 18, 2009 The rating actions follow updated information received by Fitch from the servicer on March 13, 2009, regarding the collateral disposition activity related to the accelerated loan, controlled by junior note holders. Additionally, Fitch believes that another of the underlying loans, due March 2009, is likely to default because of the current availability of refinancing. The downgrade of the class D1 and D2 notes is due to the agency's view that the expected recoverable amount of these two loans has been revised downward and there remains a probability of additional downward revision, considering the current real estate market and the quality of the property portfolio. Fitch will review the RWN status after it carefully reviews additional information, including the latest collection status on the loans, the probability of recovery stemming from sale of properties, and disposition strategy from the servicer. The agency also has concerns regarding two liquidation type loans whose pace of collateral sales has been below Fitch's assumption. Otherwise, cash flow from these properties is performing in line with expectations. There is no significant concern regarding the cash flow performance of the other underlying asset, and credit enhancement levels are expected to improve as principal collections from the defaulted assets progress; therefore, the ratings of the senior notes and Class X notes have been affirmed. For further information, please see 'Fitch Places 2 JLOC 37 Notes on RWN, Affirms 7; Outlooks Assigned' published 9 October 2008, and available at www.fitchratings.com At closing, the notes were ultimately secured by 10 loans collateralized by 61 real estate and property trust beneficial interest in respective trusts. Three loans have been fully repaid and the transaction is currently secured by seven loans backed by a total of 42 real estate and others. Rating Outlooks have been published for all newly issued Asia Pacific Structured Finance tranches since June 2008, and concurrently with rating actions for tranches issued prior to June 2008. Unlike a Rating Watch which notifies investors that there is a reasonable probability of a rating change in the short term as a result of a specific event, rating Outlooks indicate the likely direction of any rating change over a one- to two-year period. JMAC4 TRUST: Fitch Downgrades Ratings on Two Classes of Notes ------------------------------------------------------------- Fitch Ratings has downgraded two classes of JMAC4 Trust's trust beneficiary interests due February 2013, and maintained Rating Watch Negative on class D and E TBIs. Fitch has also assigned a Recovery Rating to class E TBIs, placed class C TBIs on RWN, and affirmed the remaining classes: -- JPY3.46 billion*, Class A TBIs affirmed at 'AAA'; Outlook Stable; -- JPY1.0 billion*, Class B TBIs affirmed at 'AAA'; Outlook Stable; -- JPY0.9 billion*, Class C TBIs rated 'A+'; placed on RWN; -- JPY0.8 billion*, Class D TBIs downgraded to 'B' from 'BBB'; remains on RWN; -- JPY0.5 billion*, Class E TBIs downgraded to 'C' from 'BB'; remains on RWN; 'RR5'; and -- Class X1 TBIs (interest-only) affirmed at 'AAA'; Outlook Stable. * as of March 18, 2009 Fitch recently received a business plan from the trustee with regards to the loan which defaulted in December 2008. The rating action reflects the agency's concerns about the principal repayment of class C through E TBIs following property sales based on the business plan, in light of the current real estate market and the characteristics of the property portfolio. Based on the business plan and current market conditions, Fitch is of the view that losses will inevitably impact on the class E TBIs, and so has downgraded this class to 'C'. The agency has also maintained RWN on this class as it anticipates that default will occur in time. The agency has placed and maintained the RWN on these classes, reflecting its further concerns about the probability of recovery from the defaulted loan depending on the updated information of sales activities to be provided by the servicer. Fitch will resolve the RWN status after it carefully reviews further information from the latest loan collection status. As the other underlying loans are performing in line with expectations and credit enhancement has improved following loan prepayments, the agency has affirmed the ratings of classes A, B and class X1 TBIs, where the Outlooks remain Stable. Currently, the transaction is secured by five loans backed by 12 properties as well as prepaid principals currently held at the trust account. Rating Outlooks have been published for all newly issued Asia Pacific Structured Finance tranches since June 2008, and concurrently with rating actions for tranches issued prior to June 2008. Unlike a Rating Watch which notifies investors that there is a reasonable probability of a rating change in the short term as a result of a specific event, rating outlooks indicate the likely direction of any rating change over a one- to two-year period. MAZDA MOTOR: S&P Changes Outlook on 'BB' Rating to Negative ----------------------------------------------------------- Standard & Poor's Ratings Services revised to negative from stable the outlook on its 'BB' long-term corporate credit rating on Mazda Motor Corp., reflecting increased pressure on the company's profitability and cash flow amid ongoing turbulence in global auto markets. At the same time, Standard & Poor's affirmed its long-term corporate credit and 'BB+' senior unsecured debt ratings on Mazda. Due to a rapid decline in sales and the negative effects of a strengthened yen, Mazda now forecasts an operating loss of JPY25 billion for fiscal 2008 (ending March 31, 2009). In fiscal 2007, the company achieved record earnings with an operating profit of JPY162.1 billion. For the nine months through to Dec. 31, 2008, cash flow was adversely affected by weakened profitability and an increased working capital burden, with free cash flow standing at a negative JPY197 billion. Although inventory reductions through sharp production cuts could somewhat improve cash flow in the final quarter of fiscal 2008 (Jan. 1 to March 31, 2009), S&P expects free cash flow to be negative to a significant degree for the full fiscal year. Standard & Poor's expects profitability at Mazda to remain under considerable pressure in fiscal 2009 (ending March 31, 2010), as global economies and auto markets are unlikely to recover soon. As a result, S&P expects the company's financial profile, after improving in the past few years, to deteriorate going into fiscal 2009. S&P expects the ratio of funds from operations to total debt to drop below 15% in fiscal 2008 from the 20%-30% range seen in the past few years. In addition, S&P believes the ratio of total debt to capital will likely rise to about 60% at the end of March 2009 from about 50% as of March 31, 2008. Mazda's debt leverage remains higher than many of its Japanese peers. S&P believes Mazda's liquidity is supported by its strong relationship with its main creditor banks and limited refinancing risk. As of Dec. 31, 2008, Mazda had cash and marketable securities of JPY144 billion, complemented by unused committed credit facilities of JPY200 billion. The ratings on Mazda may come under downward pressure if the company is unable to improve free cash flow and this trend leads to further deterioration in the company's financial profile in fiscal 2009. Conversely, the outlook may be revised back to stable if S&P perceive that positive free cash flow is likely to consistently improve the company's financial profile. S&P feel that the latter scenario is unlikely at the moment, however, given the expected tougher market conditions for fiscal 2009. The long-term senior unsecured debt rating continues to be one notch higher than the long-term corporate credit rating, reflecting the lower default risk of the company's debt than its bank loans. This is based on Standard & Poor's expectation of debt forgiveness by creditor banks in case of a default, given the company's relatively high exposure to bank borrowings and close relationship with its main creditor banks. Ratings List Ratings Affirmed; Outlook Action Mazda Motor Corp. (Unsolicited Ratings) To From -- ---- Corporate Credit Rating BB/Negative/-- BB/Stable/-- Ratings Affirmed Senior Unsecured BB+ ========= K O R E A ========= SAMSUN LOGIX: Voluntary Chapter 15 Case Summary ----------------------------------------------- Chapter 15 Petitioner: Hyun-Chul Hur as receiver of Samsun Logix Corporation Chapter 15 Debtor: Samsun Logix Corporation 5-6F, Lee Ma Blg 146-1 Soosong-Dong Jongno-Gu Seoul Korea Chapter 15 Case No.: 09-11109 Type of Business: The Debtor is one of South Korea's largest bulker operators. It owns 15 bulkers and has another four new buildings on order. The company's fleet comprises capesize, panamax and handysize vessels built in the 1980s and 1990s. The oldest vessel is the 1982-built, 21,289 dwt Ataraxia, while the youngest is the 1999-built, 69,406 dwt Clio. See: http://www.samsunlogix.com/ Chapter 15 Petition Date: March 11, 2009 Court: Southern District of New York (Manhattan) Chapter 15 Petitioner's Counsel: Martin G. Bunin, Esq. marty.bunin@alston.com Alston & Bird LLP 90 Park Avenue New York, NY 10016 Tel: (212) 210-9492 Fax: (212) 922-3892 Estimated Assets: More than US$1 billion Estimated Debts: More than US$1 billion =============== M A L A Y S I A =============== WWE HOLDINGS: High Court to Hear Application for Stay on April 29 ----------------------------------------------------------------- As reported by the Troubled Company Reporter-Asia Pacific on June 18, 2008, WWE Holdings Bhd had been served with a Writ of Summons and Summons in Chambers by its sub-contractor -- Tebing Aur Sdn Bhd (TASB). Tebing Aur was appointed by the company as a sub-contractor for the Jelutong Sewage Project and is claiming the final claim for the sum of MYR118,810,023.97 in addition to the injunction relating to the payment from the Government of Malaysia of up to MYR10 million. The High Court had on Sept. 16, 2008 granted the injunction. The decision of the High Court was subsequently affirmed by the Court of Appeal on December 3, 2008. In an update, the company said it had applied for a Stay of Proceedings pursuant to Section 10 of the Arbitration Act, 2005 wherein the company applied for the case to be referred to arbitration. The hearing of the application has been fixed at the High Court on April 29, 2009. About WWE Holdings WWE Holdings Bhd is engaged in investment holding and is a contractor for the provision of engineering services related to design, fabrication, installation and commissioning of water, wastewater treatment, environmental facilities and construction activities. The company's subsidiaries include WWE Construction Sdn. Bhd., a contractor for the provision of engineering services related to design, fabrication, installation and commissioning of water, wastewater treatment, environmental facilities and construction activities; WWE Industries Sdn. Bhd., which provides installation of mechanical and electrical works connected with water, wastewater treatment and environmental engineering, and Quality Water Technology Sdn. Bhd., which undertakes research and development activities to develop new technologies related to water and wastewater. On March 23, 2006, WWE acquired the remaining 30% equity interest in Quality Water. * * As reported by the Troubled Company Reporter-Asia Pacific on March 7, 2008, the company was classified as an Affected Listed Issuer under PN 17 of Bursa Malaysia Securities Berhad's Listing Requirements because the company's auditors were unable to ascertain the recoverability of the amounts and the outcome of the legal suit brought against the company. Thus, the auditors are unable to form an opinion on the financial statements of the Group for the financial year ended September 30, 2007. ==================== N E W Z E A L A N D ==================== BAR & BISTRO: Liquidator Wants Company's True Value Paid -------------------------------------------------------- Grant Reynolds, the appointed liquidator for Bar and Bistro Limited, has filed a claim seeking true value of the company after it was bought by Lochiel Corporation for NZ$3, Lucy Craymer at The National Business Review reports. According to the report, Mr. Reynolds described the sale of the restaurant "as a blatant disregard for the creditors� noting many of the creditors were involved in either the fit-out of the bar or for goods or services provided to the bar and they were owed around NZ$200,000. The report discloses the company, which was owned by siblings Alexander and Aleksandra Blagojevic, no longer ran the restaurant and it had been sold for NZ$3 in March 2008 to the former owners' father Michael Blagojevic, who also runs Le Grand Hotel. BLUE CHIP: Parent Firm Ordered to Pay NZ$1,125 for Carpark Rent --------------------------------------------------------------- Lucy Craymer at The National Business Review reports Judge David Gendall ordered Blue Chip parent company Northern Crest Investments to pay, within five days, Robt. Jones Holdings the sum of NZ$1,125.56 for overdue carpark rent. According to the report, Robt. Jones had demanded that Northern Crest pay NZ$48,030 in overdue rent for their carpark and office space at Qantas House in Auckland. However, the report says Northern Crest, of which Mark Bryers is sole director, had argued that it was not debt because the lease had been terminated by Robt. Jones in August 2008. Northern Crest, the report relates, said the owed money instead relates to rental for two months following the termination, to which Judge Gendall agreed. Northern Crest Investment Limited (ASX:NOC), formerly Blue Chip Financial Solutions Limited, is a financial planning specialist, providing wealth creation opportunities for clients in Australasia using residential property solutions. The company operated in two divisions: financial services and leasing services. The financial services division is engaged in the provision of financial structuring services and investment product to a variety of clients. The leasing activities division is engaged in rental of residential property. The company sources its clients through a network of licensees and advisers in New Zealand and Australia. During the year ended December 31, 2006, the company disposed TIBL, Blue Chip Finance Limited and Enform Limited. In April 2008, the company placed its New Zealand arm into voluntary liquidation. About Blue Chip NZ Blue Chip New Zealand Ltd. is a financial services company with offices throughout New Zealand. It is a subsidiary of Blue Chip Financial Solutions Limited, now known as Northern Crest Investments. Northern Crest operates in two divisions: financial services and leasing services. The financial services division is engaged in the provision of financial structuring services and investment product to a variety of clients. The leasing activities division is engaged in rental of residential property. * * * As reported by the Troubled Company Reporter-Asia Pacific on April 15, 2008, Blue Chip New Zealand Ltd. is in voluntary liquidation, joining 20 other Blue Chip companies that are now being wound up. Blue Chip New Zealand is a subsidiary of the company of Northern Crest Investment Limited, formerly known as Blue Chip Financial Solutions Limited. FIVE MILE: Unsecured Creditors May Not Get Anything --------------------------------------------------- Jazial Crossley at The National Business Review reports Five Mile Holdings's unsecured creditors are unlikely to get any funds after receivers of the failed Queenstown property development placed the company's outstanding debt at NZ$93 million. Citing Deloitte's six monthly report, the news agency says receiver Rod Pardington recorded that Five Mile owed NZ$81.14 million to Hanover Finance as at December 2008, and in January 2009 debt to other secured creditors was NZ$11.87 million. Deloitte's initial report from September 2008 declared Five Mile owed NZ$79.6 million to creditors, the news agency recalls. The news agency relates 31.2 hectares of Five Mile land with development potential is currently available by mortgagee sale through Bayleys. Tenders close Friday, March 27. NUPLEX INDUSTRIES: Regulators See Possible Disclosure Breach ------------------------------------------------------------ Sarah McDonald at The National Business Review reports Nuplex Industries Limited is being investigated by the Securities Commission and NZX over whether it breached continuous disclosure rules in relation to its breach of banking covenants. According to the report, in early February, analysts were warning that the company was in danger of breaching banking covenants after it cut its earnings forecast, however, the company did not confirm it was in breach until two weeks later, when it admitted its problems in response to a stock exchange share price enquiry. The report relates Nuplex said it has been advised by NZX that "an investigation is being conducted with regard to Nuplex's compliance with continuous disclosure obligations in relation to its failure to comply with the senior debt cover ratio covenant in its bank facilities as at December 31 2008.� As reported in the Troubled Company Reporter-Asia Pacific, under the group's multi-currency cash advance facility agreements with banks, Nuplex is required to comply at all times with a senior debt cover ratio to EBITDA of 3.00 times, however, as at December 31, 2008, the company said it did not comply with this covenant. Nuplex said it has been in discussion with its banks to seek an amendment to the covenant ratio to enable the company to comply. The facility agreements require that all banks agree to conditions for an amendment. The company said it is reviewing the group's funding arrangements and the board is considering the merits of issuing ordinary equity. Mr. John Hirst, group managing director, said "This has been the most difficult period in the company's history, with a drop in global demand at a rate and to an extent we have never seen before. "Against this backdrop, the result, although disappointing, demonstrates that Nuplex remains a sound and profitable Company, even in such adverse times. While our operations have been restructured in line with current trading the benefits of this will not be realised until future periods. However, as global confidence returns, as it will inevitably do, a leaner and focused Nuplex will be well positioned to profit from increased demand." Nuplex said it suspended payment of 2009 interim dividend to strengthen balance sheet and repay debt. About Nuplex Nuplex Industries Limited -- http://www.nuplex.co.nz/-- was founded in 1956 and is incorporated in New Zealand. The company is listed on both the New Zealand (NZX) and Australian (ASX) Stock Exchange. Nuplex produces and supplies technical materials used as inputs to a broad range of manufacturing processes. It also provides specialist building products. Nuplex has operations in Australia, China, Malaysia, Brazil, United Kingdom, Netherlands, the U.S., among others and reports in four business segments. According to Reuters, Nuplex is New Zealand and Australia's largest maker and distributor of resins and polymers for the paint, paper, and textile industries. It also bought a coating resins business in Holland. NUPLEX INDUSTRIES: To Raise NZ$132.8 Million Through Rights Issue ----------------------------------------------------------------- Nuplex Industries Limited said on Friday it is considering raising NZ$132.8 million of new equity capital by undertaking a pro-rata renounceable rights issue of new ordinary shares to existing Nuplex shareholders. The Rights Issue will be fully underwritten by First NZ Capital Securities Limited and has received sub-underwriting support from a broad range of institutional and habitual investors, the company said in a statement. Nuplex said it decided not to proceed with the proposed placement that had been initially contemplated, and instead decided to proceed with the Rights Issue. Accordingly, the special shareholder meeting proposed for Friday, April 3 will no longer be required. The key terms of the proposed Rights Issue are: -- Entitlement Ratio: 7 new shares for every 1 existing share -- Issue Price: NZ$0.23 per new share -- Total New shares: 577,643,738 million new shares to be issued -- Gross Proceeds: NZ$132.8 million to be raised (fully underwritten) Key dates expected for the Rights Issue are: -- Existing Shares Trade Ex-Rights: ASX: Thursday, March 26 -- Record Date: Wednesday, April 1, 2009 -- Offer document sent to eligible shareholders and Rights Issue opens : Thursday, April 2, 2009 -- Rights Trading: NZX: Thursday, April 2 to Wednesday, April 15, 2009 ASX: Thursday, March 26 to Thursday, April 9, 2009 -- Offer closes: Monday, April 20, 2009 -- Allotment of Rights Issue shares: Thu., April 23, 2009 Top-Up Placement As part of the underwriting arrangements for the Rights Issue, subjec to Nuplex obtaining NZX approval and certain relief from ASX, the company also intends to enter into a call option arrangement with First NZ Capital Securities Limited in respect of new Nuplex shares that may be issued upon completion of the Rights Issue. For the period of five days following the allotment of shares under the Rights Issue, First NZ Capital Securities Limited may call for Nuplex to issue to habitual and institutional investors who provided sub-underwriting commitments up to 15% of the shares then on issue for a price of NZ$0.23 per new shares (Top-up Placement). Provided that NZX and ASX grant the requested relief, this issue will not require shareholders approval if the option is called. Use of Funds The net proceeds from the planned capital raising shall be applied in reduction of amounts outstanding under Nuplex's senior debt facilities. Conditions The Rights Issue is conditional upon Overseas Investment Office approval being obtained prior to the allotment date. A condition of the Underwriting Agreement is that Nuplex's banks agree, to a level satisfactory to the Underwriter, acting reasonably, either to make a pro-forma adjustment to the rolling 12-month interest cost until March 31, 2010, for the purpose of calculating the interest cover levels, or to amend the level of the interest cover convenant in the bank facilities, to reflect the capital contributed by the Rights Issue. The Underwriting Agreement is also conditional upon receipt by Nuplex of ASX relief to permit the Top-up Placement to proceed without shareholder approval. As reported in the Troubled Company Reporter-Asia Pacific, under the group's multi-currency cash advance facility agreements with banks, Nuplex is required to comply at all times with a senior debt cover ratio to EBITDA of 3.00 times, however, as at December 31, 2008, the company said it did not comply with this covenant. Nuplex said it has been in discussion with its banks to seek an amendment to the covenant ratio to enable the company to comply. The facility agreements require that all banks agree to conditions for an amendment. The company said it is reviewing the group's funding arrangements and the board is considering the merits of issuing ordinary equity. Mr. John Hirst, group managing director, said "This has been the most difficult period in the company's history, with a drop in global demand at a rate and to an extent we have never seen before. "Against this backdrop, the result, although disappointing, demonstrates that Nuplex remains a sound and profitable Company, even in such adverse times. While our operations have been restructured in line with current trading the benefits of this will not be realised until future periods. However, as global confidence returns, as it will inevitably do, a leaner and focused Nuplex will be well positioned to profit from increased demand." Nuplex said it suspended payment of 2009 interim dividend to strengthen balance sheet and repay debt. About Nuplex Nuplex Industries Limited -- http://www.nuplex.co.nz/-- was founded in 1956 and is incorporated in New Zealand. The company is listed on both the New Zealand (NZX) and Australian (ASX) Stock Exchange. Nuplex produces and supplies technical materials used as inputs to a broad range of manufacturing processes. It also provides specialist building products. Nuplex has operations in Australia, China, Malaysia, Brazil, United Kingdom, Netherlands, the U.S., among others and reports in four business segments. According to Reuters, Nuplex is New Zealand and Australia's largest maker and distributor of resins and polymers for the paint, paper, and textile industries. It also bought a coating resins business in Holland. ====================== S O U T H A F R I C A ====================== SUPER GROUP: Fitch Changes Watch on 'Bb' Rating to Evolving ----------------------------------------------------------- Fitch Ratings has revised the Rating Watch on Super Group Ltd's National Long-term 'BB(zaf)' rating to Rating Watch Evolving from Rating Watch Negative. The National Short-term 'B(zaf)' rating remains on Rating Watch Negative . These rating actions follow the company's announcement of discussions with their bankers and shareholders for a ZAR1 billion fully underwritten rights offer and debt restructuring, expected by FEY09. The rights offer is expected to be fully underwritten by Super Group's bankers and a major shareholder, Allan Gray. If successful, this would result in a material reduction in short- term and total debt levels. Fitch notes that a ZAR1 billion inflow of new capital will positively impact Super Group's liquidity position and is also expected to improve net leverage. The change in Rating Watch to Evolving incorporates Fitch's expectation that a successful completion of the proposed rights issue and debt restructuring will contribute towards a strengthening of Super Group's credit profile and may have a positive impact on Super Group's long-term rating, although a stabilization of the ratings currently looks probable. However, in the event that Super Group is unable to complete the proposed funding arrangements, the group would still face material refinance risks. The RWN on the short-term rating reflects Fitch's expectation that an upgrade to 'F3(zaf)' seems unlikely at this time. Fitch remains concerned about the impact of the economic downturn in the retail and automotive sectors in the regions in which Super Group operates. Fitch is of the opinion that the group's business profile remains susceptible to reduced consumer spending from worsening macroeconomic conditions, particularly in the automotive and retail sectors. Fitch expects that, in the current environment, pressure on earnings and margins will continue for at least the next 12 to 24 months, and believes that the challenging operating environment may deteriorate further. Super Group benefits from its stable full maintenance lease business, long term growth prospects for Fleet Africa and the contractual nature of income in the Supply Chain business. Super Group is a South Africa-based company involved in supply- chain management, fleet logistics and vehicle retail distributorships. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Pius Xerxes V. Tovilla, Valerie C. Udtuhan, Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante, Marie Therese V. Profetana, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***