/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120223.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, February 23, 2012, Vol. 15, No. 39 Headlines A U S T R A L I A CROSS CITY TUNNEL: In the Brink of Receivership for Second Time DIRECT FACTORY: Justice Allows Texxcon to Sue DFO Former Owners * AUSTRALIA: Small Business Collapses Rise 48% in 2011 C H I N A COASTAL GREENLAND: S&P Lowers Corporate Credit Rating to 'CCC+' H O N G K O N G CHUNG-PAO RESIN: Creditors' Meeting Set for Feb. 27 EAST YIELD: Members' Final Meeting Set for March 20 EDEN TECHNOLOGY: Commences Wind-Up Proceedings GOLDEN LUCK: Members' Final Meeting Set for March 19 GOLDWAY INTERNATIONAL: Mak Kwok Fai Appointed as Liquidator GRAND MARINE: Members' and Creditors Meetings Set for March 1 JADE SIGNET: Creditors' Proofs of Debt Due March 5 MAINSTAR ELECTRICAL: Annual Meetings Set for March 22 N.F.K. CATERING: Commences Wind-Up Proceedings ROLLING DEVELOPMENT: Members' Final Meeting Set for March 20 STRATEGIC EUROPEAN: Members' Final Meeting Set for March 19 SUNGLORY GARDEN: Members' Final Meeting Set for March 23 I N D I A ANNAI J.K.K.: Delay in Debt Repayment Cues CRISIL Junk Ratings APEX EXPORTS: CRISIL Upgrades LT Rating on INR318MM Loan to 'B+' ATLAS ALLOY: CRISIL Assigns 'B' LT Rating to INR124.7MM Loan BSCC INFRASTRUCTURE: CRISIL Assigns B- LT Rating on INR120MM Loan CTS INDUSTRIES: Delay in Debt Repayment Cues CRISIL Junk Ratings G.K. SALES: CRISIL Rates INR70MM Long-Term Loan at 'CRISIL B+' G S M INDUSTRIES: CRISIL Assigns 'BB' LT Rating on INR100MM Loan JOREHAUT TEA: CRISIL Raises Rating on INR150MM Loan to 'BB' KINGFISHER AIRLINES: Lenders Yet to Agree on Extending Loans LANCO ANPARA: CRISIL Cuts LT Rating on INR54,968MM Loan to 'BB+' MEGAFLEX PLASTICS: CRISIL Reaffirms 'BB-' LT Rating on INR120MM PASARI MULTIPROJECTS: CRISIL Rates INR320MM Loan at 'CRISIL B' SALORAA FABS: CRISIL Assigns 'CRISIL B' Long-Term Rating SHREE GAJANAN: Delay in Debt Payment Cues CRISIL Junk Ratings TRUPTI AUTOMOTIVES: CRISIL Rates INR86MM Loan at 'CRISIL BB-' I N D O N E S I A MANDALA AIRLINES: To Resume Operations in April J A P A N MAZDA MOTOR: To Raise Up to JPY100 Billion in Share Issue, Loans TOKYO ELECTRIC: S&P Keeps 'B+/B' Corp. Credit Ratings on Watch N E W Z E A L A N D BRIDGECORP LTD: Petricevic Claims No Knowledge of Missed Payments CRAFAR FARMS: Fay-Led Bidder Files Court of Appeal Action P H I L I P P I N E S EASTMAN KODAK: Business as Usual for Asian Units - - - - - ================= A U S T R A L I A ================= CROSS CITY TUNNEL: In the Brink of Receivership for Second Time --------------------------------------------------------------- m.smh.com.au reports that Sydney's Cross City Tunnel could soon enter receivership for the second time, due to a dispute between its owners and the state government about stamp duty. The Office of State Revenue has given the owners of the motorway until the end of the month to pay a reported AU$60 million bill, according to m.smh.com.au. The report notes that the bill relates to the AU$700 million price the owners of the motorway -- Royal Bank of Scotland, Eiser Infrastructure Partners and Leighton Holdings -- paid when they bought the roadway out of receivership in 2007. The dispute, and the possible repeat failure of the tunnel, underlines the state's chequered history with public private partnerships, the report notes. m.smh.com.au discloses that the government said it would offer a AU$175 million lifeline to the Reliance Rail PPP to ensure the delivery of 78 Waratah trains for CityRail. The Cross City Tunnel's outstanding stamp duty bill is worth AU$60 million, The Australian Financial Review reported. Rather than pay the bill, putting the asset into receivership would help protect its owners, m.smh.com.au relays, according to the report. They would be paid before the Office of State Revenue, which would be listed as an unsecured creditor, m.smh.com.au adds. DIRECT FACTORY: Justice Allows Texxcon to Sue DFO Former Owners --------------------------------------------------------------- SmartCompany reports that the controversy over troubled shopping centre group DFO (Direct Factory Outlet) continues, after a Victorian Supreme Court justice on Tuesday decided business partners of the company's two former owners David Goldberger and David Wieland could launch a legal case against them. SmartCompany relates that the decision comes after months of complicated legal battles and financial tussles over the business, which has resulted in a number of court cases and has even involved the former chairman of the Australian Competition and Consumer Commission, Graeme Samuel. According to the report, Supreme Court Justice Jennifer Davies ruled that the business partners of David Wieland and David Goldberger could launch a legal case against the two millionaires. The case revolves around a AUD14 million emergency line of credit used by DFO developer Austexx to construct the company's South Wharf facility, the report relays. The two Davids were former directors of Austexx, the report notes. The case is brought against them by Texxcon, a subsidiary of Melbourne-based construction and engineering firm Contexx. Texxcon said Austexx borrowed AUD14 million from a joint venture company called Nominexx. That funding was to be used after a separate funding line had been dried up, the report notes. However, Texxcon claims this loan was not repaid, and that Austexx has engaged in misleading and deceptive conduct, says SmartCompany. While both Davids and DFO manager Geoff Porz were able to stop Nominexx from suing the company -- due to their presence on the board -- Justice Davies has given Texxcon representatives permission to sue, according to SmartCompany. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 20, 2010, the Business Spectator said Direct Factory Outlet was granted a bank bailout after its owner, Austexx Pty Ltd, struck an agreement with lenders, which is likely to see the firm avoid being placed in receivership. Business Spectator related that a banking syndicate including Suncorp-Metway Ltd., National Australia Bank Ltd., St George Bank and Royal Bank of Scotland owed AUD450 million have agreed to extend a line of credit to DFO to ensure it can complete the construction of its unfinished South Wharf retail development. In September 2010, the company struck a deal to sell four DFO outlets and a 50% stake in the South Wharf project to CFS Retail for AUD498 million. Founded in 1996, Direct Factory Outlets has eight factory outlet- style centres operating on the Eastern Seaboard. It was founded in 1996 by rich list members David Golberger and David Wieland, and is owned by holding company Austexx Pty Ltd. * AUSTRALIA: Small Business Collapses Rise 48% in 2011 ------------------------------------------------------ SmartCompany reports that credit agency Dun & Bradstreet said that the number of small business collapses soared through 2011 and this year could be another tough one as poor sentiment outside of the mining sector and tightened credit conditions take their toll. D&B's analysis of business start-ups and failures -- based on their own numbers and those of the corporate regulator -- found that the number of small businesses going under lifted by 48% in 2011, although conditions picked up in the December quarter, according to SmartCompany. D&B said this compares with a 42% increase in insolvencies nationwide across the year, SmartCompany relays. SmartCompany relates that D&B said for the three months to Dec. 31, 2011, there were 2,736 failures, down from 3,049 the previous quarter. This compares with 1,925 business failures in the December 2010 quarter, D&B said. The report follows figures from the Australian Securities and Investments Commission showing that 2011 had been the worst year ever for insolvency appointments, with corporate insolvencies up 9.2% to 10,481, SmartCompany adds. ========= C H I N A ========= COASTAL GREENLAND: S&P Lowers Corporate Credit Rating to 'CCC+' --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on China-based property developer Coastal Greenland Ltd. to 'CCC+' from 'B-'. The outlook is negative. "We also lowered the Greater China credit scale rating on the company to 'cnCCC+' from 'cnB-'. At the same time, we lowered the ratings on the company's $150 million senior unsecured notes to 'CCC' from 'CCC+' and the Greater China credit scale rating on the notes to 'cnCCC' from 'cnCCC+'," S&P said. "We downgraded Coastal Greenland to reflect our view that refinancing risks for the company have increased since we lowered the corporate credit rating in August 2011," said Standard & Poor's credit analyst Frank Lu. "Coastal Greenland's property sales are likely to remain weak in 2012, in our view, and the company appears to have limited options to refinance its debt maturing in the next six to 12 months." "In our view, visibility is low over the prospects for the company's asset sales, and the timing of proceeds is uncertain. Further, the equity and offshore debt markets are effectively shut for financially weak speculative-grade-rated issuers, such as Coastal Greenland. Trust companies have become increasingly selective in rolling over trust loans; they also charge steep costs and have restrictive terms for extending loans. Coastal Greenland's progress regarding the rollover of a $50 million investment in its senior unsecured notes by its second-largest shareholder, Shenzhen Investment Ltd., is still uncertain," S&P said. "About 82% of Coastal Greenland's total debt of Chinese renminbi (RMB) 5.20 billion is due in 2012. This includes US$132 million (about RMB0.83 billion) in senior unsecured notes due in November, four onshore trust loans totaling RMB1.64 billion that mature between May 2011 and December 2012, and RMB1.80 billion in bank borrowings," S&P said. "We expect Coastal Greenland's property sales to remain weak in 2012 due to the deepening correction in China's real estate market. The company has a limited number of projects, and most of these are affected by the government's purchase-restriction policy. Its total contract sales between April 2011 and December 2011 fell about 70% to HK$2.1 billion from the same period a year earlier. We believe the likelihood is slim that Coastal Greenland can achieve its HK$3 billion budget for property sales for the fiscal year ending March 31, 2012. The company's property sales target for the fiscal year is sharply lower than the HK$4.6 billion sales it achieved in fiscal 2011," S&P said. "The negative outlook reflects our view that Coastal Greenland may have difficulties in refinancing its maturating debts that will come due in the next six to 12 months. This is reflected in our assessment that the company's liquidity is weak for the next 12 months and the visibility of asset sales is limited in a depressed market," said Mr. Lu. "We could lower the ratings if Coastal Greenland does not have a concrete financing plan in the next three months to meet its debt maturities, or if its liquidity deteriorates further. Conversely, we could revise the outlook to stable or upgrade Coastal Greenland if the company secures major refinancing, or its liquidity materially improves due to asset or property sales," S&P said. ================ H O N G K O N G ================ CHUNG-PAO RESIN: Creditors' Meeting Set for Feb. 27 --------------------------------------------------- Creditors of Chung-Pao Resin Chemical Co Limited will hold their meeting on Feb. 27, 2012, at 11:00 a.m., for the purposes provided for in Sections 241, 242, 243, 244, 251 and 255A of the Companies Ordinance. The meeting will be held at Unit 102, 1st Floor, Hong Kong Trade Centre, at 161-167 Des Voeux Road Central, in Hong Kong. EAST YIELD: Members' Final Meeting Set for March 20 --------------------------------------------------- Members of East Yield International Limited will hold their final general meeting on March 20, 2012, at 10:00 a.m., at Baimao Industrial Development Zone in Changshu City, Jiangsu, in China. At the meeting, Ying Zhiyao, Tang Mingliang and Ying Li, the company's liquidators, will give a report on the company's wind- up proceedings and property disposal. EDEN TECHNOLOGY: Commences Wind-Up Proceedings ---------------------------------------------- Members of Eden Technology (H.K.) Limited, on Feb. 10, 2012, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Ho Mei Wah May Room 2303, 23/F The Centre Mark 287-299 Queen's Road Central, Hong Kong GOLDEN LUCK: Members' Final Meeting Set for March 19 ---------------------------------------------------- Members of Golden Luck Pacific Limited will hold their final general meeting on March 19, 2012, at 11:00 a.m., at Room 1205, 12/F, Manulife Provident Funds Place, No. 345 Nathan Road, in Kowloon. At the meeting, Mak Kwok Fai, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GOLDWAY INTERNATIONAL: Mak Kwok Fai Appointed as Liquidator ----------------------------------------------------------- Mak Kwok Fai on Feb. 17, 2012, was appointed as liquidator of Goldway International Limited. The liquidator may be reached at: Mak Kwok Fai Room 1205, 12/F Manulife Provident Funds Place No. 345 Nathan Road Kowloon, Hong Kong GRAND MARINE: Members' and Creditors Meetings Set for March 1 ------------------------------------------------------------- Members and creditors of Grand Marine Holdings Limited will hold Separate meetings on March 1, 2012, at 2:30 p.m., and 2:45 p.m., respectively at Room 32B1, 32nd Floor, One Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, Dermot Agnew, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. JADE SIGNET: Creditors' Proofs of Debt Due March 5 -------------------------------------------------- Creditors of Jade Signet International Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 5, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 9, 2012. The company's liquidator is: Ngan Lin Chun Esther 1902 MassMutual Tower 38 Gloucester Road Wanchai, Hong Kong MAINSTAR ELECTRICAL: Annual Meetings Set for March 22 ----------------------------------------------------- Creditors and members of Mainstar Electrical Company Limited will hold their annual meetings on March 22, 2012, at 11:00 a.m., and 11:30 a.m., respectively at Room 203 of Duke of Windsor Social Service Building located at 15 Hennessy Road, Wanchai, in Hong Kong. At the meeting, Yuen Tsz Chun Frank, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. N.F.K. CATERING: Commences Wind-Up Proceedings ---------------------------------------------- Members of N.F.K. Catering Limited, on Feb. 9, 2012, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Ng Oi Che Room 206, 2nd Floor Alliance Building 130-136 Connaught Road Central, Hong Kong ROLLING DEVELOPMENT: Members' Final Meeting Set for March 20 ------------------------------------------------------------ Sole Member of Rolling Development Limited will hold their final general meeting on March 20, 2012, at 10:00 a.m., at Flat D, 6/F., Beverly Court, at 2C Shiu Fai Terrace, Wanchai, in Hong Kong. At the meeting, Lui Ngok Che, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. STRATEGIC EUROPEAN: Members' Final Meeting Set for March 19 ----------------------------------------------------------- Members of Strategic European Center for Investment and Industrial Development Limited will hold their final general meeting on March 19, 2012, at 11:00 a.m., at Unit 1301, 13/F, Chung Nam Building, at 1 Lockhart Road, Wanchai, in Hong Kong. At the meeting, Andrew George Hung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SUNGLORY GARDEN: Members' Final Meeting Set for March 23 --------------------------------------------------------- Members of Sunglory Garden Limited will hold their final meeting on March 23, 2012, at 10:00 a.m., at Unit 501, 5/F, Mirror Tower, a 61 Mody Road, Tsimshatsui East, Kowloon, in Hong Kong. At the meeting, Tong Lap Hong, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= ANNAI J.K.K.: Delay in Debt Repayment Cues CRISIL Junk Ratings -------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities of Annai J.K.K. Sampoorani Ammal Charitable Trust. Facilities Ratings ---------- ------- Long-Term Rating CRISIL D (Assigned) Short-Term Rating CRISIL D (Assigned) Total Bank Loan Facilities Rated: INR171.4 Million The ratings reflect instances of delay by ACT in servicing its debt; the delays have been caused by the trust's weak liquidity. ACT also had weak enrolments in its engineering courses during 2011-12 (refers to academic year, July 1 to June 30) on account of intensifying competition from increasing number of engineering colleges in Tamil Nadu. The trust is also susceptible to any adverse regulatory changes in the educational sector. However, ACT benefits from the extensive industry experience its promoters and the healthy demand prospects for the education industry. Established in 1972, ACT operates various educational institutes across diverse disciplines, such as pharmacy, engineering, teachers training, higher and secondary schooling. Currently, the trust operates a total of about 13 institutions, including a hospital. ACT was established by Dr. K K Muniraja and his wife, Ms. Vasanta Kumari. Of the trust's institutes, four (College of Nursing, Pharmacy College, College of Technology and Polytechnic College) collectively contribute more than 85 per cent of the trust's total revenues. ACT reported a surplus of INR34.6 million on an operating income of INR185.8 million for 2010-11 (refers to financial year, April 1 to March 31), against a surplus of INR41.3 million on an operating income of INR163.8 million for 2009-10. APEX EXPORTS: CRISIL Upgrades LT Rating on INR318MM Loan to 'B+' ---------------------------------------------------------------- CRISIL has upgraded its rating on Apex Exports' long-term bank facilities to 'CRISIL B+/Stable' from 'CRISIL B/Stable' and reaffirmed its rating on Apex's short-term facilities at 'CRISIL A4'. Facilities Ratings ---------- ------- Long-Term Rating CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Short-Term Rating CRISIL A4 (Reaffirmed) Total Bank Loan Facilities Rated: INR318 Million The rating upgrade reflects expected improvement in Apex's financial risk profile because of a significant expected improvement in its gearing. Its gearing is expected to improve to around 6 times as on March 31, 2012 from over 20 times a year ago, driven by increase in cash accruals in 2011-12. The firm incurred substantial foreign exchange (forex)-related losses of around INR14.5 million and INR79.7 million in 2009-10 (refers to financial year April 1, to March 31) and 2008-09 respectively, from derivative transactions, which had eroded its net worth almost entirely, thereby leading to the deterioration in its gearing. The firm's cash accruals improved in 2011-12 because of healthy growth in revenues due to strong demand for Indian shrimp in US and Europe markets. The upgrade also factors in expected 30 per cent year-on-year increase in the firm's revenues to more than INR2.1 billion in 2011-12. CRISIL believes that Apex will sustain its revenue growth, leading to increase in cash accruals and consequent further improvement in its gearing, over the medium term. The ratings reflect Apex's below-average financial risk profile marked by high gearing and small net worth, and susceptibility of its margins to volatility in raw material prices and forex rates. These rating weaknesses are partially offset by the benefits that Apex derives from its promoters' extensive experience in the seafood industry and its established customer relationships. Outlook: Stable CRISIL believes that Apex will continue to benefit from its promoters' industry experience and the healthy demand for Indian shrimps in the export markets. The outlook may be revised to 'Positive' if Apex demonstrates a more-than-expected increase in its revenues, while improving its profitability, thereby improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the firm's sales or margins decline sharply because of adverse changes in export demand, if it undertakes larger-than-expected debt-funded capital expenditure programme, or if it changes its hedging policy leading to further forex-related loses, resulting in less-than-expected improvement in its financial risk profile. About Apex Exports Apex was set up as a partnership firm in 1996 at Kakinada (Andhra Pradesh) by Mr. K Satyanarayana Murthy and his wife. The firm processes and exports cultured shrimps to the US and Europe. It has a processing capacity of 40 tonnes per day (tpd). The firm is planning to increase the capacity by 40 tpd at an estimated cost of INR150 million, to be funded at a debt-equity ratio of 2:1. Apex reported a profit after tax (PAT) of INR52 million on net sales of INR1.5 billion for 2010-11, against a PAT of INR31 million on net sales of INR0.8 billion for 2009-10. The firm reported, on provisional basis, revenues of INR1.4 billion for the seven months ended Oct. 31, 2011. ATLAS ALLOY: CRISIL Assigns 'B' LT Rating to INR124.7MM Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Atlas Alloy (India) Pvt Ltd. Facilities Ratings ---------- ------- Long-Term Rating CRISIL B/Stable (Assigned) Short-Term Rating CRISIL A4 (Assigned) Total Bank Loan Facilities Rated: INR124.7 Million The ratings reflect AAIPL's weak financial risk profile marked by small net worth, high gearing and weak debt protection metrics, and constrained business risk profile because of its modest scale of operations and customer concentration. These rating weaknesses are partially offset by AAIPL's promoters' extensive experience in the batteries industry, leading to good relations with its key clients. Outlook: Stable CRISIL believes that AAIPL will benefit from its promoter's extensive industry experience over the medium term and good relationships with key clients. The outlook may be revised to 'Positive' in case AAIPL increases diversification of its customer profile or achieves healthy growth in revenues. Conversely, the outlook may be revised to 'Negative' if AAIPL's liquidity gets adversely affected, most likely because of a significant decline in its revenues or operating margin, or because of larger-than-expected capital expenditure. About Atlas Alloy AAIPL was incorporated in 1990. It manufactures storage batteries which are used in vehicles, uninterrupted power supply (UPS) systems and inverters. The company also trades in batteries - it procures batteries from local markets and sells those under its own brand after quality testing. Trading accounted for about 10.00 per cent of its net sales in 2010-11 (refers to financial year, April 1 to March 31). For 2010-11, AAIPL reported a profit after tax (PAT) of INR0.78 million on net sales of INR157.4 million, against a PAT of INR0.73 million on net sales of INR75.9 million for 2009-10. BSCC INFRASTRUCTURE: CRISIL Assigns B- LT Rating on INR120MM Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to the bank facilities of BSCC Infrastructure Pvt Ltd. Facilities Ratings ---------- ------- Long-Term Rating CRISIL B-/Stable (Assigned) Short-Term Rating CRISIL A4 (Assigned) Total Bank Loan Facilities Rated: INR120 Million The ratings reflect BSCC's recent delays in servicing term loan and its limited track record in executing civil infrastructure projects. These rating weaknesses are partially offset by BSCC's established relationships with customers. Outlook: Stable CRISIL believes that BSCC will maintain credit risk profile on the back of its established customer relationships. The outlook may be revised to 'Positive' if the company significantly increases the scale of its civil construction business, while efficiently managing its working capital cycle and without material deterioration of its financial risk profile. Conversely, the outlook may be revised to 'Negative' if there are drastic increases in the company's working capital requirements or significantly lower-than-expected cash accruals, resulting in weakening in its liquidity. About BSCC Infrastructure Based in Mehsana (Gujarat), BSCC was promoted by Mr. Bharat S Chaudhary; the company is a contractor, primarily for the Dudhsagar Dairy in Gujarat and Gujarat State Road Transport Corporation. BSCC recently completed a INR1000-million project for construction of cattle feed plant for Dudhsagar Dairy in Jagudan (Gujarat). The company is also a distributor for Bharat Sanchar Nigam Ltd recharge coupons and SIM cards in the Mehsana and Palanpur districts of Gujarat. BSCC reported a profit after tax (PAT) of INR15 million on net sales of about INR839 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR3 million on net sales of INR102 million for 2009-10. CTS INDUSTRIES: Delay in Debt Repayment Cues CRISIL Junk Ratings ---------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of CTS Industries Ltd to 'CRISIL D/CRISIL D' from 'CRISIL B+/Stable/CRISIL A4'. Facilities Ratings ---------- ------- Long-Term Rating CRISIL D (Downgraded from CRISIL B+/Stable) Short-Term Rating CRISIL D (Downgraded from CRISIL A4) Total Bank Loan Facilities Rated: INR 300 Million The downgrade reflects instances of delay by CTS in servicing its term debt; the delays have been caused by weakened liquidity. CTS's liquidity weakened because of its large debt-funded capital expenditure (capex) and large working capital requirements arising out of its increased business volumes. CTS undertook a capex programme of about INR180 million in 2010-11 (refers to financial year, April 1 to March 31) towards setting up a crusher plant in Chittragaria- Jharkhand and towards maintenance activities. Furthermore, as CTS's topline grew at about 40 per cent year-on-year in 2010-11, its working capital requirements increased by about INR210 million. This led to the company's increased borrowings and a consequent increase in interest payments and decline in net cash accruals. CTS's weak liquidity is expected to remain weak because of its working-capital-intensive operations and its large debt obligations over the medium term. The company also has modest scale of operations. However, CTS benefits from its promoters' extensive industry experience. About CTS Industries CTS was initially engaged only in trading in petrochemical products such as parafin wax, slack wax and pesidue wax. It was amalgamated with its group company, Annapurna Global Ltd, in April 2006. The wax production facilities, which were with Annapurna Global Ltd, were transferred to the amalgamated entity. The company now operates in three segments, including wax trading, pre-stressed concrete (PSC) pole manufacturing and supplying crushed stone/aggregates to the construction segment. Currently, 80 per cent of the company's revenues come from supplying crushed stone/aggregates to the construction segment, wax division contributes about 11 per cent, and the rest comes from PSC pole manufacturing. CTS is a licensed distributor for various petrochemical products of Indian Oil Company. The available capacity for PSC poles is 360 pieces per day at its Begusarai (Bihar) plant. In the stone- crushing segment, CTS has six plants for aggregates, dust and boulders - at Chitragadia (Jharkhand; 220 tonnes per hour [tph]), Chaibasa (Jharkhand; 220 tph), Chandiasthan (Bihar; 220 tph), Bokaro (Jharkhand; 1000 tonnes per day [tpd]), Manpur, Gaya (Bihar; 1000 tpd), and Koderma (Jharkhand; 1000 tpd). For 2010-11, CTS reported a net profit of INR15 million on an operating income of INR1.6 billion, against a net profit of INR20 million on an operating income of INR1.2 billion for the preceding year. G.K. SALES: CRISIL Rates INR70MM Long-Term Loan at 'CRISIL B+' -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' ratings to the bank facilities of G. K. Sales Corporation. Facilities Ratings ---------- ------- Long-Term Rating CRISIL B+/Stable (Assigned) Total Bank Loan Facilities Rated: INR70 Million The rating reflects the firm's weak financial risk profile, with modest networth, high gearing and weak debt protection metrics coupled with the firm's limited bargaining power with its supplier and its modest scale of operation. These rating weaknesses are partially offset by its long standing experience of its promoters in the auto spare part distributorship business. Outlook: Stable CRISIL believes that GKSC will maintain a stable business risk profile on the back of its established market presence & long standing experience of the promoters. The outlook may be revised to 'Positive' in case of significant increase in revenues coupled with improvement in net cash accruals and debt protection metrics. Conversely, the outlook may be revised to 'Negative' in case of deterioration in operating margins or debt protection metrics or further elongation in working capital cycle. About G. K. Sales GKSC, a partnership firm, established in 1986, by the Raipur, Chhattisgarh based Parwani family, is engaged in trading of various automotive spare parts. The firm is the sole authorized distributor for many established companies like Mahindra and Mahindra Ltd., Anand Automotives Ltd. and ASPA Auto Lamps Pvt. Ltd. The overall operations of the firm are managed by Mr. Purshottam Parwani, along with his brothers Mr. Amar Parwani and Mr. Hemant Parwani. The firm has its showroom and head office located at Raipur, Chhattisgarh. GKSC reported a profit after tax (PAT) of INR1.8 million on net sales of INR193.2 million for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR1.5 million on net sales of INR199.7 million for 2009-10. G S M INDUSTRIES: CRISIL Assigns 'BB' LT Rating on INR100MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to the bank facilities of G S M Industries Pvt Ltd. Facilities Ratings ---------- ------- Long-Term Rating CRISIL BB/Stable (Assigned) Short-Term Rating CRISIL A4+ (Assigned) Total Bank Loan Facilities Rated: INR100 Million The ratings reflect the extensive experience of GSM's promoters in the timber business, and the company's moderate financial risk profile marked by comfortable capital structure and moderate debt protection metrics. These rating strengths are partially offset by GSM's susceptibility to intense competition in the timber industry and to volatility in input prices, and working-capital- intensive operations. Outlook: Stable CRISIL believes that GSM will continue to benefit from its promoters' extensive industry experience and will maintain its comfortable capital structure over the medium term. The outlook may be revised to 'Positive' in case GSM substantially increases its scale of operations and improves its profitability, without bringing about any significant weakening in its capital structure. Conversely, the outlook may be revised to 'Negative' in case the company's liquidity comes under pressure, most likely because of less-than-expected cash accruals or larger-than- expected working capital requirements. About G S M Industries GSM is based in Gandhidham (Gujarat). The company was taken over in 2006 by its current promoter, Mr. Ramesh Chinaria. The company manufactures marine plywood (contributes the majority of its revenues), commercial plywood, block-boards and flush-doors under 'GSM' brand. It uses about 30 per cent of its manufactured veneer to make plywood and the rest it markets to plywood manufacturers. The company's manufacturing unit is in Gandhidham; the unit has capacity of processing 16 tonnes of plywood and veneer per day. GSM reported a profit after tax (PAT) of INR1.7 million on net sales of INR141.8 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR0.5 million on net sales of INR141.3 million for 2009-10. JOREHAUT TEA: CRISIL Raises Rating on INR150MM Loan to 'BB' ----------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facility of The Jorehaut Tea Ltd to 'CRISIL BB/Stable' from 'CRISIL BB- /Stable'. Facilities Ratings ---------- ------- Long-Term Rating CRISIL BB/Stable (Upgraded from 'CRISIL BB-/Stable') Total Bank Loan Facilities Rated: INR150 Million The upgrade reflects improvement in the Jorehaut group's financial risk profile backed by healthy accruals, leading to an improvement in its net worth and capital structure. Also, the group's business risk profile is healthy with higher operating margins and moderate net cash accruals. CRISIL has changed its analytical approach, wherein it has treated INR220 million of unsecured loans, extended by the group's promoter, as neither debt nor equity, since it is interest-free in nature and subordinated to bank debt. For arriving at the rating, CRISIL has combined the business and financial risk profiles of TJTL and The Jorehaut Group Ltd (TJGL), together referred to as the Jorehaut group. The consolidated approach is because the two companies share the same management and TJTL has taken on lease all four gardens and manufacturing facilities owned by TJGL; TJTL does not own any tea garden or manufacturing facility. Moreover, TJGL has provided corporate guarantee for the INR150-million term loan availed of by TJTL. TJGL had also extended unsecured loan of INR273.5 million to TJTL as on March 31, 2009, to enable the latter to acquire 49.93 per cent equity stake in TJGL. The rating also reflects the extensive industry experience of the Jorehaut group's promoter. This rating strength is partially offset by the seasonality in the Jorehaut group's production, high operating leverage restricting financial risk profile, and its small scale of operations. Outlook: Stable CRISIL believes that the Jorehaut group will benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if there is a substantial improvement in the group's financial risk profile, marked by improvement in capital structure or better-than- expected profitability. Conversely, the outlook may be revised to 'Negative' if the profitability is below expectations, or if the group undertakes larger-than-expected debt-funded capex programme, thereby adversely affecting its financial risk profile. About the Group TJTL, promoted by Mr. I P Poddar in 1999, produces black crush, tear, and curl tea with annual production capacities of 4 million kilograms. The Poddar family has been engaged in tea production since 1983, when they purchased TJGL from a Europe-based company. TJGL owns four gardens spread across 1979 hectares in Assam. Each garden is accompanied by a tea manufacturing facility. From 2005, the Poddar family started producing tea in TJTL by taking over all four gardens and manufacturing facilities of TJGL on lease. Currently, TJGL does not have any commercial operations. In 2008-09 (refers to financial year, April 1 to March 31), TJTL bought 49.93 per cent stake in TJGL for a purchase consideration of INR277.5 million. The purchase was funded through term loan of INR150 million, and the remaining through interest-free unsecured loan. CRISIL has not factored in the inter-group investment during consolidation, which has resulted in negative net worth for the Jorehaut group, as TJGL had net worth of less than INR20 million, excluding revaluation reserve, at the time of purchase of equity stake by TJTL. The Jorehaut group reported a profit after tax (PAT) of INR39 million on net sales of Rs72 million for 2010-11, as against a PAT of INR34 million on net sales of INR65 million for 2009-10. KINGFISHER AIRLINES: Lenders Yet to Agree on Extending Loans ------------------------------------------------------------ The Economic Times reports that three banking sources said a consortium of lenders to Kingfisher Airlines has not yet agreed to extend further loans to the beleaguered carrier, which urgently needs funds to save it from collapse. Senior executives of Punjab National Bank, IDBI Bank and Bank of Baroda, which between them have lent about INR20 billion (US$406 million) to Kingfisher, have not yet reached any deal to lend more to the carrier, the report says. The executives did not want to be identified as they are not allowed to speak about individual clients, according to ET. Earlier, the Economic Times related that State Bank of India, the biggest lender to Kingfisher, had decided to lend INR16.5 billion to the ailing carrier. According to the report, Vijay Mallya, the flamboyant liquor baron who owns a majority stake in Kingfisher, is seeking working capital loans from lenders to keep the carrier flying. The Economic Times relates that the airline has cancelled more than a hundred flights since Saturday and lost dozens of pilots in the past two months as its cashflow dried after tax authorities froze its bank accounts. Of the 64 planes in its fleet, Kingfisher is now using just 28, disrupting the travel plans of thousands of passengers across India, the report notes. The Economic Times says Kingfisher has mandated SBI Capital Markets, the investment banking arm of State Bank of India, for restructuring its US$1.3 billion debt. SBI Caps had submitted a proposal to Kingfisher's consortium of 16 lenders last Friday, the report notes. "We have to study the proposal, seek clarifications and then take a call individually," the report quots the source at IDBI Bank as saying. "It is a complicated issue and it will take time," said another source. About Kingfisher Airlines Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/-- formerly known as Deccan Aviation Ltd., serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known for its United Breweries unit, and the carrier shares the Kingfisher brand with a popular Indian beer. UB Holdings also owns a stake in another domestic carrier, Air Deccan, whose operations it combined with Kingfisher Airlines in mid-2008. Kingfisher Airlines began flying in 2005. * * * Kingfisher Airlines lost money six years in a row, accumulating net debt of INR77.2 billion (US$1.74 billion) as of March 2010, according to data compiled by Bloomberg. LANCO ANPARA: CRISIL Cuts LT Rating on INR54,968MM Loan to 'BB+' ---------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Lanco Anpara Power Ltd to 'CRISIL BB+/Negative/CRISIL A4+' from 'CRISIL BBB-/Stable/CRISIL A3'. Facilities Ratings ---------- ------- Long-Term Rating CRISIL BB+/Negative (Downgraded from CRISIL BBB-/Stable) Short-Term Rating CRISIL A4+ (Downgraded from CRISIL A3) Total Bank Loan Facilities Rated: INR54968 Million The downgrade reflects deterioration in LAPL's credit risk profile because of delays in commissioning of the company's upcoming plant and weakening in the credit risk profile of its parent, Lanco Infratech Ltd (Lanco Infratech, rated 'CRISIL BBB- /Negative/CRISIL A3'). The two units at LAPL's upcoming plant, which were to begin commercial operations in July 2011 and November 2011 respectively, have declared commercial operations in December 2011 and January 2012 respectively, because of delays in project execution. There has been a cost overrun of INR5 billion in the project because of adverse foreign exchange rates and increased interest cost during construction of the plant. Furthermore, because of fuel availability issues, LAPL will have to buy coal from the e-auction market. The aforementioned risks are partially offset by the likelihood of stable revenues for LAPL on the back of its power purchase agreements with four power distribution companies (wholly owned by Uttar Pradesh Power Corporation Ltd) as well as full pass- through of coal costs. Outlook: Negative CRISIL believes that LAPL's financial risk profile will remain under pressure over the medium term because of time and the cost overruns in commissioning its plant. The ratings may be downgraded if LAPL is not able to build up liquidity for meeting its INR510-million debt obligations falling due on July 15, 2012 because of issues related to stabilization of plant and collection of receivables. Conversely, the outlook may be revised to 'Stable' if LAPL stabilizes operations at the plants sooner than expected and generates steady cash accruals. About Lanco Anpara LAPL has been promoted by Lanco Infratech (a part of the Lanco group). LAPL was incorporated in June 2006 for setting up a 1200 megawatt-(MW) coal-based thermal power plant at Anpara (Uttar Pradesh, India). The project got delayed because the air pre- heater at the plant was damaged at the time of stabilisation. The original commercial operations dates for the two units of the plant were July 2011 and November 2011. The units have commenced commercial operations in December 2011 and January 2012 respectively. MEGAFLEX PLASTICS: CRISIL Reaffirms 'BB-' LT Rating on INR120MM --------------------------------------------------------------- CRISIL's ratings to the bank facilities of Megaflex Plastics Ltd continues to reflect MPL's moderate business risk profile backed by promoter's extensive industry experience and expected improvement in financial risk profile, marked by moderate debt protection metrics. Facilities Ratings ---------- ------- Long-Term Rating CRISIL BB-/Stable (Reaffirmed) Short-Term Rating CRISIL A4+ (Reaffirmed) Total Bank Loan Facilities Rated: INR120 Million These rating strengths are partially offset by MPL's working- capital-intensive operations, exposure to intense competition in the polypropylene (PP) bags segment, and small scale of operations. Outlook: Stable CRISIL believes that MPL will benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' in case of substantial increase in its revenues and profitability. Conversely, the outlook may be revised to 'Negative' if MPL's financial risk profile deteriorates on account of large debt-funded capital expenditure plan. About Megaflex Plastics Set up in 2007 by Mr. Rakesh Sethia, MPL manufactures PP bags, which are used for packing bulk quantities of fruits, vegetables, and food grains. MPL has capacity to manufacture around 43 million pieces per annum, and currently has 53 leno looms for making fabric. MPL sells its products mostly through dealers and distributors in West Bengal to various potato traders, farmers, cold chains, and bag traders. MPL reported a profit after tax (PAT) of INR5.9 million on net sales of INR199.36 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR4.7 million on net sales of INR189.72 million for 2009-10. PASARI MULTIPROJECTS: CRISIL Rates INR320MM Loan at 'CRISIL B' -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the cash credit facility of Pasari Multiprojects Pvt Ltd. Facilities Ratings ---------- ------- Long-Term Rating CRISIL B/Stable (Assigned) Total Bank Loan Facilities Rated: INR320 Million The rating reflects Pasari's weak business risk profile, constrained by its promoter's limited experience in the commercial real estate space leading to project implementation risks, saleability risks for commercial space, and funding risks in terms of dependence on customer advances. These rating weaknesses are partially offset by expected financial support, in terms of regular equity infusion, to Pasari from its promoters. Outlook: Stable CRISIL believes that Pasari will complete its ongoing project without any significant time or cost overrun. The outlook may be revised to 'Positive' in case Pasari reports better-than-expected sales of commercial space, resulting in stable cash flows and timeliness in debt servicing, over the medium term. Conversely, the outlook may be revised to 'Negative' if Pasari's financial risk profile deteriorates, most likely because of time or cost overrun in the project, or lack of timely and adequate financial support from the promoters. About Pasari Multiprojects Pasari, incorporated in 1993, is a special-purpose vehicle (SPV) formed by the Pasari group to undertake construction of a commercial complex and a four-star hotel, together called Corporate Empire, in Anandapur, East Calcutta Township (along Eastern Metropolitan Bypass), Kolkata (West Bengal). The estimated cost of the project is INR940 million. The hotel and commercial space are expected to be operational by June 2014. The Pasari group has been engaged in development of residential properties for more than 30 years now, with a project portfolio of over 1 million square feet in the last three years. The group has over 32 subsidiaries and all of its projects are in and around Kolkata. SALORAA FABS: CRISIL Assigns 'CRISIL B' Long-Term Rating -------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Saloraa Fabs. Facilities Ratings ---------- ------- Long-Term Rating CRISIL B/Stable (Assigned) Short-Term Rating CRISIL A4 (Assigned) Total Bank Loan Facilities Rated: INR67.3 Million The ratings reflect the firm's small scale of operations and customer concentration risks in SF's revenue profile. The ratings also reflect the firm's weak financial risk profile marked by low net worth and moderate debt protection metrics. These weaknesses are partially offset by the industry experience of SF's promoters in the readymade garment (RMG) segment. Outlook: Stable CRISIL believes that SF will continue to benefit over the medium term from its established track record in the textile segment. The outlook may be revised to 'Positive' if the group considerably improves its scale of operations and profitability, resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if there is considerable decline in revenues or profitability or in case of deterioration in working capital management, resulting in stretched liquidity, or if the firm undertakes a large debt- funded capital expenditure programme, resulting in weakening in its financial risk profile, or in case of greater-than-expected capital withdrawals by its proprietor. About Saloraa Fabs SF set up as a proprietorship firm in 2003 is engaged in manufacture of readymade (RMG) garments mainly for men. The firm exports to the European market and derives its entire revenues from supplies to Industria de Dise�o Textil, S.A. (referred to as the Inditex group) one of the world's largest fashion distributors. The day to day operations are managed by Mr. S. Ramesh who has more than ten years of experience in the RMG segment. SF reported a profit after tax (PAT) of INR 2.7 million on net sales of INR 103.35 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR 1.9 million on net sales of INR 81.92 million for 2009-10. SHREE GAJANAN: Delay in Debt Payment Cues CRISIL Junk Ratings ------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Shree Gajanan Prasad Workshop to 'CRISIL D/CRISIL D' from 'CRISIL B+/ Stable/ CRISIL A4'. Facilities Ratings ---------- ------- Long-Term Rating CRISIL D (Downgraded from CRISIL B+/Stable) Short-Term Rating CRISIL D (Downgraded from CRISIL A4) Total Bank Loan Facilities Rated: INR90 Million The downgrade reflects instances of delay by SGPW in servicing its term debt; the delays have been caused by the firm's weak liquidity. Along with significant delays in debt repayment for four months till December 2011, part of the repayment obligation due on January 31, 2012, remained overdue on Feb. 2, 2012. SGPW's liquidity has weakened over the past six months because of delays in realization of payment from some of the firm's customers. With significant orders to be executed over the next six months, CRISIL believes that SGPW's working capital requirements will remain large and liquidity will remain weak. SGPW also has a weak financial risk profile marked by a small net worth, high gearing, and weak debt protection metrics. However, the firm continues to benefit from its stable revenue stream, its satisfactory order book and its promoter's extensive business experience. About Shree Gajanan Shree Gajanan Prasad Workshop, a proprietorship firm, was set up by Mr. Chandrakant Patil in 1979. It manufactures propeller units used in boats and large vessels. The propeller unit comprises a propeller engine, shaft, gear box, steering gear, a rudder, and others. About 40 per cent of the products manufactured by SGPW are exported to foreign countries, while the rest are sold in the domestic market. The firm has two manufacturing units, one each in Karanja and Dronagiri (both in Maharashtra). SGPW's profit before tax (PBT) is at INR 10.6 million on net sales of INR101.2 million for 2010-11 (refers to financial year, April 1 to March 31), against a PBT of INR8.7 million on net sales of INR102.0 million for 2009-10. TRUPTI AUTOMOTIVES: CRISIL Rates INR86MM Loan at 'CRISIL BB-' ------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long- term bank facilities of Trupti Automotives. Facilities Ratings ---------- ------- Long-Term Rating CRISIL BB-/Stable (Assigned) Total Bank Loan Facilities Rated: INR 86.0 Million The rating reflects TA's moderate financial risk profile, marked by high gearing, small net worth, and weak debt protection metrics, and modest scale of operations. These rating weaknesses are partially offset by TA's stable business risk profile, backed by established relationship with Tata Motors Ltd (TML; rated 'CRISIL AA-/Stable/CRISIL A1+'). Outlook: Stable CRISIL believes that TA will benefit over the medium term from its long-term stable relationship with its principal, TML. The outlook may be revised to 'Positive' if there is sustained improvement in its operating profitability and significant capital infusion by the partners, resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if TA undertakes large debt-funded capital expenditure programme, thereby materially impacting its debt protection metrics, or if the firm's profitability declines due to increase in overheads. About Trupti Automotives In 2004, TA, a partnership firm, became the authorised dealer for commercial vehicles of TML in Orissa, having its integrated 3-S (Service, Spares and Sales) facility in Manguli, Angul, and Sathipur. The firm deals in all the model variants for commercial vehicles of TML. TA is managed by two brothers, Mr. B Mohanty and Mr. S Mohanty. TA reported a profit after tax (PAT) of INR3.43 million on net sales of INR1052.38 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR2.46 million on net sales of INR872.2 million for 2009-10. ================= I N D O N E S I A ================= MANDALA AIRLINES: To Resume Operations in April ----------------------------------------------- The Jakarta Post reports that Tiger Airways Holdings Ltd announced on Tuesday that Mandala Airlines will resume operations in April. Tiger Airways, which concluded its purchase of a 33% stake in Mandala earlier this month, said in a statement that Mandala's Air Operators Certificate (AOC) had been reinstated by the Transportation Ministry, The Jakarta Post relates. Mandala's operating license was frozen in January 2011 following the suspension of Mandala's operations, the report says. "Information about the number of planes and routes will be announced soon," the company was quoted as saying by kontan.co.id, The Jakarta Post reports. Mandala has undergone financial restructuring in accordance with Indonesian law. The largest shareholder in the restructured Mandala is the Saratoga Group, which owns 51.3% of the airline. The remaining 15.7% is owned by previous shareholders and creditors of Mandala. Based in Jakarta, Indonesia, PT Mandala Airlines is a low-cost airline. The carrier operates scheduled services to 3 international and 17 domestic destinations, using a fleet of narrow body Airbuses. ========= J A P A N ========= MAZDA MOTOR: To Raise Up to JPY100 Billion in Share Issue, Loans ---------------------------------------------------------------- The Japan Times reports that sources said Mazda Motor Corp. is planning to increase its capital by as much as JPY100 billion by issuing new shares as it seeks to bolster its flagging financial standing, having been battered by the strong yen. The automaker, expecting to log a group net loss of JPY100 billion in the business year ending in March, also plans to raise JPY70 billion in subordinate loans from financial institutions, including the Development Bank of Japan and Sumitomo Mitsui Banking Corp, the report says. The Japan Times states that Mazda is particularly vulnerable to the yen's strength among major Japanese automakers because it produces most of its vehicles at plants in Japan and thus has a higher export ratio than its competitors. The company has also been hit by sluggish sales amid the European debt crisis and reduced output due to supply chain disruptions triggered by the massive flooding in Thailand last year, the report notes. With the funds to be raised, it is expected to expand its overseas output by building new plants in emerging economies, including Mexico and Russia, according to The Japan Times. For the nine-month period through December, Mazda reported a net loss of JPY112.84 billion and saw its capital adequacy ratio fall to 19.2%. The company logged an operating loss of JPY54.28 billion, compared with a profit of JPY13.23 billion a year earlier, on sales of JPY1.42 trillion, down 17.4% from the previous year, The Japan Times discloses. Mazda incurred a consolidated net loss of JPY60.04 billion in fiscal 2010, compared with a JPY6.48 billion in group net loss logged in fiscal 2009. Mazda Motor posted a group net loss of JPY71.49 billion in fiscal 2008. About Mazda Motor Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor Corporation -- http://www.mazda.co.jp/-- together with its subsidiaries and associates, is primarily involved in the manufacture and distribution of automobiles. The company manufactures passenger cars and commercial vehicles. Mazda Motor distributes its products in both domestic and overseas markets. The company has 58 subsidiaries. It has overseas operations in the United States, Canada, Mexico, Germany, Belgium, France, the United Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand, Indonesia and China. TOKYO ELECTRIC: S&P Keeps 'B+/B' Corp. Credit Ratings on Watch -------------------------------------------------------------- Standard & Poor's Ratings Services kept Tokyo Electric Power Co. Inc. on CreditWatch but revised its implications to negative from developing. "We maintained the 'B+' long-term corporate credit, 'B' short-term corporate credit, and 'BB+' long-term debt ratings on the company. The stand-alone credit profile on TEPCO remains at 'ccc+', and the likelihood that the company will receive extraordinary support from the government of Japan (AA- /Negative/A-1+) in the event of financial distress remains 'high.' We placed the ratings on CreditWatch developing on May 13, 2011, and kept them on that status after lowering the ratings on the company on May 30, and again on Aug. 4 and Nov. 9," S&P said. "We revised the CreditWatch implications to negative from developing because we believe prospects for an upgrade have diminished. While we expect TEPCO to receive further financial support from the government, including an injection of equity capital, the extent of TEPCO's operating and net losses--in terms of quantity and period of time--has increased, in our view. Based on our forecast, TEPCO will post a larger operating and net loss for fiscal 2012 (ending March 31, 2013) than we expected and take longer to recover--due to a lower increase in electricity tariffs than we expected, higher fuel costs, a delay in restarting its Kashiwazaki-Kariwa nuclear power reactors, and our expectation that decommissioning and cleanup costs will be higher than TEPCO estimates," S&P said. "We have revised our key assumptions of the average value of electricity tariff hikes that TEPCO will make to between 8% and 10%, compared with 10% in our last review in November 2011. We also think a restart of the Kashiwazaki-Kariwa reactors will be delayed for at least a year, with none to be reactivated in fiscal 2012. Negative public sentiment in response to TEPCO's announcement earlier this year of its intention to hike nonregulated electricity rates from April, and strong opposition to nuclear power generation, contributed to our views. In addition, the longer the delay in restarting the reactors, the higher the costs the company will incur for alternative fuels. Moreover, we believe TEPCO will incur higher decommissioning and cleanup costs than the company estimates, given the scale of the work involved," S&P said. "The government-backed Nuclear Damage Compensation Facilitation Corporation to assist TEPCO and the company's restructuring plan remain unclear, and we expect the government to announce the final form of its support package by March 31, 2012. TEPCO's financial profile remains highly vulnerable without successful and timely implementation of further government financial support following approval of a restructuring plan. Although TEPCO continues to have a positive net worth, ongoing operating and net losses due to significantly higher fuel costs to replace nuclear power generation continue to burden the company's ongoing financial position," S&P said. "In our view, TEPCO has not fully eliminated risk of selective default (SD), a scenario we view as more likely than general default," S&P said. "We plan to resolve TEPCO's CreditWatch status once the government has approved TEPCO's restructuring plan. The CreditWatch negative status reflects a more than 50% possibility that a downgrade will occur within 90 days," S&P said. In S&P's opinion, S&P could lower the ratings on TEPCO if: * Government approval of a restructuring plan is significantly delayed beyond the due date of March 31, 2012; * An overall increase in TEPCO's electricity rates is significantly lower than our revised assumption of between 8% and 10%; * Further delays occur in restarting TEPCO's Kashiwazaki-Kariwa nuclear reactors; * TEPCO's lender banks do not agree to its request for a further JPY1 trillion in new loans in addition to refinancing maturing debt, thus causing the company liquidity problems; * Some form of debt restructuring becomes increasingly likely; or * A government infusion of �1 trillion in equity capital becomes unlikely and government commitment to TEPCO is much weaker than S&P expects. On the other hand, S&P could maintain the ratings if: * The government approves TEPCO's request for a JPY1 trillion infusion of government capital, mostly in the form of equity capital; * S&P sees a government commitment to avoid TEPCO experiencing negative net worth and a liquidity shortage over the long term; * Approved hikes in overall electricity rates are higher than or around S&P's revised 8%-to-10% assumption; * TEPCO's lender banks agree to its request for JPY1 trillion in new loans in addition to refinancing maturing debt; and * The likelihood of a restructuring of TEPCO's debt remains consistent with S&P's current expectations. ==================== N E W Z E A L A N D ==================== BRIDGECORP LTD: Petricevic Claims No Knowledge of Missed Payments ----------------------------------------------------------------- Fairfax NZ News reports that Rod Petricevic, the former managing director of failed finance company Bridgecorp Ltd, claims he was unaware of any missed interest payments just a month before the company went into receivership. The news agency relates that Mr. Petricevic, who on Feb. 20 took the stand at the High Court at Auckland to defend 10 Securities Act charges in which he is alleged to have misled investors, also said as far as he was aware no maturity payments to investors had ever not been paid. According to the report, Mr. Petricevic said he had not been advised of any missed payments either until just before the company went under, contrary to some of the Crown evidence. The trial of Mr. Petricevic and former directors Rob Roest and Peter Steigrad on 10 charges under the Securities Act of misleading investors began on October 25, after numerous delays, Fairfax NZ notes. Two other directors have already admitted the charges. Gary Urwin was to have been sentenced in December. That was adjourned to allow for a three-day disputed facts hearing beginning on April 2. In November, the former Bridgecorp chairman Bruce Davidson was sentenced to nine months home detention, 200 hours of community service and ordered to pay $500,000 in reparation to investors after pleading guilty to the 10 Securities Act charges. The trial is expected to end next month, the report adds. About Bridgecorp Ltd Based in New Zealand, Bridgecorp Ltd. is a property development and finance company. Bridgecorp was placed in receivership on July 2, 2007, after failing to pay principal due to debenture holders. John Waller and Colin McCloy, partners at PricewaterhouseCoopers, were appointed as receivers. Bridgecorp owes around 14,500 investors, which liquidators estimate to approximate NZ$500 million. Bridgecorp's nine Australian companies were also placed into voluntary administration, owing about 100 investors about AUD24 million (NZ$27 million). CRAFAR FARMS: Fay-Led Bidder Files Court of Appeal Action --------------------------------------------------------- APNZ reports that the Sir Michael Fay-led consortium looking to wrest the Crafar dairy farms away from rival bidder Shanghai Pengxin have initiated Court of Appeal action challenging the Chinese company's relevant experience and ability to operate the farms. High Court Justice Forrest Miller last week found in favor of the Fay group when it sought a review of the Overseas Investment Office (OIO) and ministerial approval granted to Shanghai Pengxin to buy the farms, APNZ recalls. Justice Miller upheld the challenge on the grounds the OIO and ministers did not assess the bid's economic benefits correctly. However he dismissed the Fay group's contention that Shanghai Pengxin lacked the necessary business experience and acumen to run the farms, according to the report. APNZ says the Fay group's lawyer David Cooper of Bell Gully yesterday confirmed he had initiated the Court of Appeal proceedings. According to the report, Mr. Cooper said the group wanted to challenge Justice Miller's decision on the relevant experience and acumen issue as a second avenue of legal challenge against Shanghai Pengxin's application. That was in case the OIO and ministers gave the bid the green light when reconsidering it against the economic benefits test stipulated by Justice Miller. However Shanghai Pengxin spokesman Cedric Allan said the Fay group's criticism of the Chinese company's farming credentials were part of "a self serving campaign of allegations and half- truths," the report relays. "Pengxin is not only a major developer and builder of retail, residential, hotel and infrastructure projects. The company has won awards for its work throughout China and has successfully managed offshore investments including copper mining in the Republic of Congo, and a controlling interest in a profitable cropping farm in Bolivia, half as big again as all the Crafar farms," the report quotes Mr. Allan as saying. "The company has been involved in cropping and sheep farming in China for years, with a target of having three million sheep within five years." ===================== P H I L I P P I N E S ===================== EASTMAN KODAK: Business as Usual for Asian Units ------------------------------------------------ Eastman Kodak's business affiliates in the Asia-Pacific continues to operate in the normal course despite the U.S. parent's bankruptcy filing, according to Lois Lebegue, Kodak's Asia- Pacific managing director for consumer digital and graphic communications groups. The director said Kodak in Asia is not part of the filing for bankruptcy by the U.S. office and its subsidiaries, Alma Buelva of The Philippine Star wrote. He explained that "the filing is for restructuring and reorganization to take care of the legacy pensions and other matters. We are not affected by it here in Asia, which is the most solid region for the company." Mr. Lebegue, however, said Kodak in Asia will naturally go along the company's global restructuring that should see it focusing on its most valuable business lines. He said the plan is to exert three-fourths of the company's resources for business-to-business and one-fourth for consumer offerings, the PhilStar reported. Kodak employs more than 4,000 core people in Asia where it has six manufacturing plants, 14 subsidiaries and three R&D centers, the PhilStar related. As a whole, Asia represents a $1.5-billion business for Kodak, Mr. Lebegue said. Armin A. Amio of The BusinessMirror pointed out that Kodak, in Asia, has been partnering with other solutions providers to grow its enterprise business. In the Philippines, it linked up with Unisys for the National Statistics Office's documentation program, the report said. Other major clients include Maybank, HSBC Corp., the Hong Kong government, Japan's national assembly, to name a few, the report added. The PhilStar noted that in the Philippines, the brand name has become a local term -- kodakan -- which means to take pictures. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, voluntarily filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. are not included in the filing and will continue to operate as usual. The Company, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Having invested significantly in research and development for over a century, Kodak has a vast portfolio of patents. In 1975, Kodak scientists invented the first digital camera. Kodak then went on to develop a vast collection of patented technologies to enhance digital image capture and processing, technologies that are used in virtually every modern digital camera, smartphone and tablet, as well as numerous other devices. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Kodak says it has "significant" legacy liabilities, which include $1.2 billion in non-U.S. pension liabilities, $1.3 billion of Other Post-Employment Benefit ("OPEB") liabilities and roughly $100 million in environmental liabilities. Kodak has outstanding funded debt in an aggregate amount of roughly $1.6 billion, consisting primarily of roughly: (a) $100 million outstanding under the first lien revolving credit facility plus an additional $96 million in face amount of outstanding letters of credit; (b) $750 million in principal amount of second lien secured notes; (c) $400 million in principal amount of convertible notes; and (d) $283 million in principal amount of other senior unsecured debt. Kodak also has roughly $425 million in outstanding trade debt. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtor. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. A group of second lien lenders are represented by Akin Gump Strauss Hauer & Feld LLP. Bankruptcy Creditors' Service, Inc., publishes EASTMAN KODAK BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Eastman Kodak and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 240/629-3300. *** End of Transmission ***