/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120730.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, July 30, 2012, Vol. 15, No. 150 Headlines A U S T R A L I A ARAFURA PEARLS: Sells All Assets to Managed Investment Scheme AURORA USA: S&P Keeps 'CCC+' Rating on $300MM Sr. Unsecured Notes AURORA USA: Moody's Rates $100MM Senior Unsecured Notes 'Caa1' DUNES PORT: Goes Into Receivership; Owes More Than AUD13 Million GOLD COAST BLAZE: Placed In Liquidation After Owners Breach DOCA H O N G K O N G BIOENVIROLINK TECH: Court to Hear Wind-Up Petition on Aug. 8 BONUS EARN: Court to Hear Wind-Up Petition on Aug. 15 CHEONG FAI: Lau and Yuen Appointed as Liquidators FORTUNE MATE: Court to Hear Wind-Up Petition on Aug. 29 LUCKY FIRST: Court to Hear Wind-Up Petition on Sept. 5 NICE THEME: Creditors Get 0.9% Recovery on Claims PETS CENTRAL: Court to Hear Wind-Up Petition on Sept. 26 PET PARENTS: Court to Hear Wind-Up Petition on Sept. 26 PHOENIX GARMENT: Hok and Yat Step Down as Liquidators SHUNFENG PHOTOVOLTAIC: Court to Hear Wind-Up Petition on Aug. 8 TAK MING: Creditors' Proofs of Debt Due Aug. 17 VAN SHIPPING: Court to Hear Wind-Up Petition on Sept. 19 WINDING UP: Court to Hear Wind-Up Petition on Sept. 12 WING FUNG: Court to Hear Wind-Up Petition on Aug. 29 WISDOMASIA MARKETING: Court to Hear Wind-Up Petition on Aug. 8 I N D I A BHAGABATI BUILD: CRISIL Rates INR55MM Cash Credit at 'CRISIL B+' BEEHIVE EDUCATIONAL: CRISIL Places 'D' Ratings on INR110MM Loans CALICA RESOURCES: CRISIL Puts 'B+' Rating on INR12MM Loans COLOSSUS TRADE: CRISIL Puts 'B+' Rating on INR92.9MM Loans GOURANGA COLD: Delay in Loan Payment Cues CRISIL Junk Ratings J.R.D. INT'L: CRISIL Assigns 'B-' Rating to INR70MM Loan KRISHNA INDUSTRIAL: Delays in Loan Payment Cues CRISIL D Rating LEELOTTAM INDUSTRIES: CRISIL Puts 'B' Rating on INR250MM Loan PITAMBARA AGRI: CRISIL Rates INR57.5MM Term Loan at 'CRISIL B-' R.R. DWELLINGS: CRISIL Assigns 'B+' Rating to INR180MM Loan TRANSTECH GREEN: Fitch Cuts Rating on INR406MM Term Debt to 'D' TATA STEEL: S&P Affirms 'BB' Corp Credit Rating; Outlook Negative TEAMEC CHLORATES: CRISIL Puts 'B' Rating on INR453MM Loans I N D O N E S I A KAWASAN INDUSTRI: Fitch Puts Final 'B' Rating on 5Yr Senior Notes J A P A N PEGASUS FUNDING: S&P Lowers Ratings on 3 ABL Classes to 'CC' K O R E A SK HYNIX: Fitch Says Profitability to Continue N E W Z E A L A N D AORANGI SECURITIES: Charity Misses Out on Hubbard's Will BRIDGECORP LTD: Investors to Get Second Interim Dividend - - - - - ================= A U S T R A L I A ================= ARAFURA PEARLS: Sells All Assets to Managed Investment Scheme ------------------------------------------------------------- Alison Bevege at NT News reports that Arafura Pearls has had all its assets sold into a managed investment scheme. NT News relates that the gutted shell of the company, Arafura Pearls, is still listed on the Australian Securities Exchange. Administrators KordaMentha will hold a creditors meeting today, July 30, 2012, to discuss what should be done with the empty husk which is subject to a deed of company arrangement, according to NT News. As reported in the Troubled Company Reporter-Asia Pacific on April 25, 2011, Arafura Pearls Holdings Ltd appointed Stephen Duncan and Chris Powell of Korda Mentha as administrators of the company as it was unable to reach a standstill agreement with its lenders. PerthNow reported in March 2011 that trading in the shares of Arafura Pearls had been suspended as the company's board investigates problems with its half year report released in late February. Arafura said that "certain matters have come to the board's attention, which require further investigation concerning the accuracy of those accounts." Based in Australia, Arafura Pearls Holdings Limited -- http://www.arafurapearls.com.au-- was engaged in the development and operation of a pearl oyster hatchery and farming operation. AURORA USA: S&P Keeps 'CCC+' Rating on $300MM Sr. Unsecured Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services said its 'CCC+' issue rating on Aurora USA Oil & Gas Inc.'s 9.875% senior unsecured notes due 2017 is unchanged following Aurora Oil & Gas Ltd.'s announcement that it will seek to add US$100 million to its US$200 million notes outstanding. This would bring the total issue amount to US$300 million. The notes are guaranteed by Aurora and its subsidiaries. "The recovery rating on the notes is '6', indicating our expectation of negligible (0% to 10%) recovery in the event of a payment default," S&P said. "The 'B' corporate credit rating and stable outlook on Australia- based Aurora are also unaffected. The exploration and production company intends to use the proceeds to fund ongoing development of Aurora's acreage as well as for future acquisitions, and for general corporate purposes," S&P said. "In our view, the recent acquisitions of an additional 12.25% working interest in the Sugarloaf Area of Mutual Interest (AMI), which is located in Texas' Eagle Ford Shale basin, provide some benefit to the company's small asset base and low production levels. However, we continue to consider the company's business risk profile as 'vulnerable', reflecting its limited operating track record and diversity, with all of its operations concentrated in the Eagle Ford Shale basin," S&P said. "Pro forma for the proposed transaction, we expect credit measures to remain somewhat better than our rating expectations. Although the add-on amount is material compared to Aurora's existing debt, production levels are expected to increase by around 20% following the acquisitions. We expect Aurora's debt- to-EBITDA to rise to above 2x in 2012 based on our current oil price assumption of US$85 per barrel of West Texas Intermediate (WTI) crude oil. We also expect the company's liquidity to remain 'adequate', as defined in our criteria, taking into account the add-on to its outstanding notes and the recent equity raising," S&P said. "The ratings on Aurora reflect the company's small asset base and low production levels, lack of geographical diversification, and limited operating track record. In addition, the company will have a deficit in its free operating cash flow mainly because of its capital expenditure in 2012 and 2013, which will be mostly debt-funded. Offsetting these negatives is the company's favorable cost structure and high-quality reserve base, which has a significant exposure to crude oil prices," S&P said. RATINGS LIST Aurora USA Oil & Gas Ltd. Corporate credit rating B/Stable/-- Aurora USA Oil & Gas Inc. US$300 mil 9.875% sr unsecd nts due 2017 CCC+ Recovery rating 6 AURORA USA: Moody's Rates $100MM Senior Unsecured Notes 'Caa1' -------------------------------------------------------------- Moody's Investors Service assigned a Caa1 rating to the Aurora USA Oil & Gas, Inc. offering of $100 million senior unsecured notes due 2017. These notes are a tack-on issuance to the existing $200 million unsecured senior notes due 2017. Aurora intends to use the net proceeds from the proposed offering to prefund a portion of its development requirements for the Sugarkane field in the Eagle Ford operated by Marathon Oil (MRO). The rating outlook is stable. Ratings Rationale "Aurora is small, highly levered for its production and proved developed reserves and a non-operator of its assets. The rating focuses on its capacity to rapidly expand production and cash flows to better match the large and uncertain timing cash calls for development funds from MRO, the operator. Maintaining liquidity to pay development costs when and as called is imperative; going non-consent cripples Aurora's economics," said Harry Schroeder, Moody's Vice President. The rating is predicated on Marathon Oil's (MRO) reputation and capability as the operator of Aurora's properties, MRO's economic interest and financial ability to rapidly develop this field, its intent to hold drilling locations by production thus accelerating drilling costs, the robust unleveraged cash margins available in the Eagle Ford and full-cycle metrics. Moody's sees the full- cycle metrics for Aurora eroding despite production being almost entirely liquids. Economic entry point of acreage acquisition purchase is critical to ultimate performance as Aurora's management, in reality, has neither control, nor adds significant value to the actual development of the properties. Since March 2012, it has spent about $200 million on increasing its acreage/working interests in Sugarkane (about $65,000 per net acre). Making acceptable economic returns with this embedded cost basis and about $7.5 million per net well is difficult. While equity funded a substantial portion, the need for this issuance is to freshen-up the liquidity initially earmarked for development of existing properties and lowering leverage metrics in the short-term. The rating assumes that Marathon continues as operator, Aurora will maintain adequate liquidity to fund its share of Marathon's drilling program when and as called, that production in the Sugarkane Field grows apace of Moody's expectations and further acquisitions of non-immediate cash generating assets is very limited. The rating is restrained by concentration in a single field, early stage operations, and Aurora's non-operator status. The Caa1 rating on the proposed $100 million senior notes reflects both the Corporate Family Rating (CFR) and Probability of Default Rating (PDR) both of which are B3. The Loss Given Default is LGD 4 (50%). At 6/30/2012, Aurora has a senior secured revolving credit with an $85 million borrowing base that is fully available. This precipitates the notching of the notes to a Caa1 rating. With a proforma post issue cash balance estimated to be about $150 million, proforma 12 months Retained Cash Flow of $150 million and Revolver availability of $85 million approximately $385 million is available to meet cash calls from the operator. This should be sufficient to meet all but the most extraordinary of cash calls. Moody's assigns a Speculative Grade Rating of SGL-2 for liquidity. The principal methodology used in rating Aurora USA Oil & Gas, Inc was the Independent Exploration and Production (E&P) Industry Rating Methodology published in December 2011. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada, and EMEA published in June 2009. Aurora is based in Perth, Australia. DUNES PORT: Goes Into Receivership; Owes More Than AUD13 Million ---------------------------------------------------------------- ABC News reports that The Dunes, Port Hughes, a high-profile resort and housing development, has gone into receivership, with debts of more than AUD13 million. The Dunes development at Port Hughes on Yorke Peninsula in South Australia includes a golf course designed by Greg Norman, ABC News discloses. According to the report, the golf course will still operate and the receivers are looking to sell remaining housing allotments. About 200 had been established as part of a long-term plan for more than 2,000 homes. The Dunes, Port Hughes is a residential and resort development on the South Australian coast. GOLD COAST BLAZE: Placed In Liquidation After Owners Breach DOCA ---------------------------------------------------------------- Daniel Meers at goldcoast.com.au reports that the Gold Coast Blaze will be placed into liquidation after the Tomlinson family defaulted on the deed of company arrangement, leaving players, staff and creditors facing the prospect of not receiving a cent of what they are owed. goldcoast.com.au says the shock came late Friday, when co-owner Owen Tomlinson confirmed he did not have the funds to pay the AUD300,000, which would have allowed Blaze employees to receive 73c in the dollar and unsecured creditors 7c. The report notes that creditors voted through the deed after they were given the impression the club was in a position to provide the funds. According to the report, Mr. Tomlinson signed the agreement, which allowed the club to be placed out of administration and able to attempt to be reinstated into the NBL. It was not made clear at the time that the Tomlinson family either did not have the funds, or did not wish to put personal funds towards the deed, the report relays. Mr. Tomlinson confirmed the club would be placed into liquidation, goldcoast.com.au adds. Gold Coast Blaze Pty Ltd moved into voluntary administration after it failed to meet its financial commitments. It owes more than AUD12 million, with the bulk of the funding injected by the company's founders, the Tomlinsons. The Gold Coast Blaze is an Australian men's professional basketball team which competes in the National Basketball League (NBL). ================ H O N G K O N G ================ BIOENVIROLINK TECH: Court to Hear Wind-Up Petition on Aug. 8 ------------------------------------------------------------ A petition to wind up the operations of Bioenvirolink Technologies Limited will be heard before the High Court of Hong Kong on Aug. 8, 2012, at 9:30 a.m. Environmental Pioneers & Solutions Limited filed the petition against the company on June 4, 2012. The Petitioner's solicitors are: CWL Partners 28/F, Tesbury Centre 28 Queen's Road East, Wanchai Hong Kong BONUS EARN: Court to Hear Wind-Up Petition on Aug. 15 ----------------------------------------------------- A petition to wind up the operations of Bonus Earn Investments Limited will be heard before the High Court of Hong Kong on Aug. 15, 2012, at 9:30 a.m. Broad Mark Limited filed the petition against the company on May 21, 2012. The Petitioner's solicitors are: Hart Giles 1401 China Insurance Group Building 141 Des Voeux Road Central, Hong Kong CHEONG FAI: Lau and Yuen Appointed as Liquidators ------------------------------------------------- Lau Wu Kwai King Lauren and Yuen Tsz Chun Frank on June 28, 2012, were appointed as liquidators of Cheong Fai Hardware (H.K.) Limited. The liquidators may be reached at: Lau Wu Kwai King Lauren Yuen Tsz Chun Frank 5th Floor, Ho Lee Commercial Building 38-44 D'Aguilar Street Central, Hong Kong FORTUNE MATE: Court to Hear Wind-Up Petition on Aug. 29 ------------------------------------------------------- A petition to wind up the operations of Fortune Mate (Group) Holding Limited will be heard before the High Court of Hong Kong on Aug. 29, 2012, at 9:30 a.m. Fook Lee Holdings Limited filed the petition against the company on June 22, 2012. The Petitioner's solicitors are: Sit, Fung, Kwong & Shum 18th Floor, Gloucester Tower The Landmark, 11 Pedder Street Central, Hong Kong LUCKY FIRST: Court to Hear Wind-Up Petition on Sept. 5 ------------------------------------------------------ A petition to wind up the operations of Lucky First Industries Limited will be heard before the High Court of Hong Kong on Sept. 5, 2012, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on July 3, 2012. The Petitioner's solicitors are: Tsang, Chan & Wong 16th Floor, Wing On House No. 71 Des Voeux Road Central, Hong Kong NICE THEME: Creditors Get 0.9% Recovery on Claims ------------------------------------------------- Nice Theme Limited, which is in liquidation, will declare the second ordinary dividend to its creditors on Aug. 9, 2012. The company will pay 0.9% for ordinary claims. The company's liquidators are: James Wardell Chan Wai Dune Charles Suite 1704, 17th Floor 625 King's Road North Point, Hong Kong PETS CENTRAL: Court to Hear Wind-Up Petition on Sept. 26 -------------------------------------------------------- A petition to wind up the operations of Pets Central North Point (HK) Limited will be heard before the High Court of Hong Kong on Sept. 26, 2012, at 9:30 a.m. ADP Pentagon Pets Limited filed the petition against the company on July 23, 2012. The Petitioner's solicitors are: F. Zimmern & Co Suites 1501-1503, 15/F Gloucester Tower The Landmark, 15 Queen's Road Central, Hong Kong PET PARENTS: Court to Hear Wind-Up Petition on Sept. 26 ------------------------------------------------------- A petition to wind up the operations of Pet Parents Club (HK) Limited will be heard before the High Court of Hong Kong on Sept. 26, 2012, at 9:30 a.m. ADP Pentagon Pets Limited filed the petition against the company on July 23, 2012. The Petitioner's solicitors are: F. Zimmern & Co Suites 1501-1503, 15/F Gloucester Tower The Landmark, 15 Queen's Road Central, Hong Kong PHOENIX GARMENT: Hok and Yat Step Down as Liquidators ----------------------------------------------------- Rainier Hok Chung Lam and Yat Kit Jong stepped down as liquidators of Phoenix Garment Enterprises Limited on July 4, 2012. SHUNFENG PHOTOVOLTAIC: Court to Hear Wind-Up Petition on Aug. 8 --------------------------------------------------------------- A petition to wind up the operations of Shunfeng Photovoltaic International Limited will be heard before the High Court of Hong Kong on Aug. 8, 2012, at 9:30 a.m. Allen & Overy filed the petition against the company on June 5, 2012. The Petitioner's solicitors are: Allen & Overy 9th Floor, Three Exchange Square Central, Hong Kong TAK MING: Creditors' Proofs of Debt Due Aug. 17 ----------------------------------------------- Creditors of Tak Ming Packing Product Company Limited, which is in liquidation, are required to file their proofs of debt by Aug. 17, 2012, to be included in the company's dividend distribution. The company's liquidators are: Lau Wu Kwai King Lauren Yuen Tsz Chun Frank 5th Floor, Ho Lee Commercial Building 38-44 D'Aguilar Street Central, Hong Kong VAN SHIPPING: Court to Hear Wind-Up Petition on Sept. 19 -------------------------------------------------------- A petition to wind up the operations of Van Shipping Company Limited will be heard before the High Court of Hong Kong on Sept. 19, 2012, at 9:30 a.m. Jiuzhou Development Company Limited filed the petition against the company on July 18, 2012. The Petitioner's solicitors are: Wilkinson & Grist 6th Floor, Prince's Building 10 Chater Road Central, Hong Kong WINDING UP: Court to Hear Wind-Up Petition on Sept. 12 ------------------------------------------------------ A petition to wind up the operations of The Winding Up of AHL Design Workshop Limited will be heard before the High Court of Hong Kong on Sept. 12, 2012, at 9:30 a.m. Unison Projects Company Limited filed the petition against the company on July 18, 2012. The Petitioner's solicitors are: J. Chan, Yip, So & Partners Suite 2001, 20th Floor St. George's Building 2 Ice House Street Central, Hong Kong WING FUNG: Court to Hear Wind-Up Petition on Aug. 29 ---------------------------------------------------- A petition to wind up the operations of The Incorporated Owners of Wing Fung Building, Wing Fung Street will be heard before the High Court of Hong Kong on Aug. 29, 2012, at 9:30 a.m. Sino Flagship Investments Limited filed the petition against the company on June 26, 2012. The Petitioner's solicitors are: Mayer Brown JSM 18th Floor, Prince's Building 10 Chater Road Central, Hong Kong WISDOMASIA MARKETING: Court to Hear Wind-Up Petition on Aug. 8 -------------------------------------------------------------- A petition to wind up the operations of Wisdomasia Marketing & Research Consulting Co. Limited will be heard before the High Court of Hong Kong on Aug. 8, 2012, at 9:30 a.m. Wisdomasia Marketing & Research Consulting Pte. Limited filed the petition against the company on June 5, 2012. ========= I N D I A ========= BHAGABATI BUILD: CRISIL Rates INR55MM Cash Credit at 'CRISIL B+' ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Bhagabati Build & Constructions Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Bank Guarantee 30 CRISIL A4 Cash Credit 55 CRISIL B+/Stable The ratings reflect BBCPL's small scale of operations in a fragmented civil construction industry, geographical concentration, and large working capital requirements. The ratings also factor in the company's below-average financial risk profile, marked by a small net worth and moderately high gearing. These rating weaknesses are partially offset by the benefits that BBCPL derives from its promoters' extensive experience in the civil construction industry in Orissa, established relations with government entities, and its present moderate order book that renders near-term revenue visibility. Outlook: Stable CRISIL believes that BBCPL will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case the company scales up its operations significantly while maintaining its profitability, leading to better-than-expected cash accruals and improvement in its liquidity. Conversely, the outlook may be revised to 'Negative' in case BBCPL reports weakening in its financial risk profile, particularly its liquidity, most likely due to larger- than-expected working capital requirements, or if there are delays in project execution and realization of receivables, or if it undertakes a large, debt-funded, capital expenditure programme. BBCPL was promoted in 2010 by Mr. Bibhuti Bhusan Routray and Mr. Bichitrananda Routray to take over the assets and liabilities of their partnership firm, Bhagabati Constructions. BBCPL took over the business of the partnership firm with effect from September 30, 2010. BBCPL undertakes civil construction contracts for roads and bridges mainly from government departments, such as Rural Works Department and Bhubaneswar Development Authority in Orissa. BEEHIVE EDUCATIONAL: CRISIL Places 'D' Ratings on INR110MM Loans ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the long-term bank facilities of Beehive Educational Society. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Overdraft Facility 12 CRISIL D Term Loan 98 CRISIL D The rating reflects the instances of delay by BES in servicing its debt; the delays have been caused by the society's cash flow mismatch. BES is also susceptible to intense industry competition and to a high degree of regulation by government agencies; moreover, the society also has a below average financial risk profile marked by a high gearing, a modest net worth and moderate debt protection metrics. BES, however, benefits from its good reputation, supported by its long track record, in Dehradun (Uttarakhand) BES, set up in April 2002, offers education in the fields of engineering, management, science, commerce, and physiotherapy. It currently runs three institutes, namely, Beehive College of Advance Studies, Beehive College of Management & Technology, and Beehive College of Engineering & Technology. All three institutes are located on a single campus in Dehradun. BES offers hostel accommodation for around 260 students. BES, on a provisional basis, reported a net surplus of INR7.4 million on fee income of INR68.2 million for 2011-12 (refers to financial year, April 1 to March 31), against a net surplus of INR6.3 million on fee income of INR66.0 million for 2010-11. CALICA RESOURCES: CRISIL Puts 'B+' Rating on INR12MM Loans ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Calica Resources Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Export Packing Credit 10.0 CRISIL B+/Stable Export Packing Credit 90.0 CRISIL A4 Proposed Long-Term 2.0 CRISIL B+/Stable Bank Loan Facility The ratings reflect CRPL's small scale of operations in a highly fragmented agri-commodity industry and start-up nature of operations. The ratings also factor in the susceptibility of the company's profitability to volatility in guar gum prices and foreign exchange rates. These rating weaknesses are partially offset by CRPL's above-average financial risk profile, marked by low gearing and strong debt protection metrics, and the extensive industry experience of its promoters in the agri-commodity industry. Outlook: Stable CRISIL believes that CRPL will benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company registers higher-than- expected offtake and operating margin, leading to healthy accruals or efficient working capital management. Conversely, the outlook may be revised to 'Negative' in case of increase in working capital requirements or climatic changes affecting supply of inputs or development of new substitutes or lower-than- expected accruals. About Calica Resources Incorporated in 2011, CRPL is promoted by Ahmedabad (Gujarat)- based Mr. Ankit Patel and Mr. Sandeep Patel. CRPL is a part of the Calica Export group, which manufactures and trades in textile grade, food grade, and industrial grade powder made from guar seeds, tamarind, and maize starch. CRPL manufactures and exports guar gum. The company has a processing capacity of about 4500 tonnes per annum of guar gum at its plant in Ahmedabad. CRPL started operations in April 2012. COLOSSUS TRADE: CRISIL Puts 'B+' Rating on INR92.9MM Loans ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Colossus Trade Links Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Proposed Long-Term 2.9 CRISIL B+/Stable Bank Loan Facility Bank Guarantee 10 CRISIL A4 Cash Credit 90 CRISIL B+/Stable The ratings reflect CTL's below average financial risk profile, marked by small net worth, high gearing, low profitability and weak debt protection metrics, and modest scale of operations. These rating weaknesses are partially offset by the benefits that CTL derives from its promoters' extensive industry experience, their funding support, and established relationships with its major customers and suppliers. Outlook: Stable CRISIL believes that CTL will continue to benefit from its promoters' industry experience and funding support. The outlook may be revised to 'Positive' if there is significant improvement in CTL's financial risk profile, driven most likely by larger- than-expected cash accruals or equity infusion, along with efficient working capital management. Conversely, the outlook may be revised to 'Negative' if there is increased pressure on the company's liquidity, caused most likely by less-than-expected cash accruals, or larger-than-expected working capital requirements or debt-funded capital expenditure. About Colossus Trade Colossus Trade Links Ltd primarily trades in scrap metal procured from the domestic automobile sector. It derives over 70 per cent of its revenues from supplying scrap metal to foundries and steel plants and the remainder from sale to traders, electronic original equipment manufacturers (OEMs) and other users of its product portfolio. CTL is headquartered in Delhi and has seven warehouses (three owned and four rented) across northern India, with a combined area of over 15,000 square yards and a combined storage capacity of over 8000 tonnes. CTL was incorporated in 2004 by Mr. Namit Gulati and his family. Before promoting CTL, the promoters were in the same line of business for over 10 years under different group entities that are currently non- operational. GOURANGA COLD: Delay in Loan Payment Cues CRISIL Junk Ratings ------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities of Gouranga Cold Storage Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Term Loan 21.5 CRISIL D Bank Guarantee 3.0 CRISIL D Cash Credit 82 CRISIL D The ratings reflect the instances of delay by GCSPL in servicing its term debt along with non-repayment of its cash credit limit within the due date; the delays have been caused by the company's weak liquidity. GCSPL is also exposed to the highly regulated and intensely competitive cold storage industry in West Bengal; moreover, the company has a weak financial risk profile, marked by a small net worth, a high gearing, and weak debt protection metrics. GCSPL, however, benefits from its promoters' extensive experience in the cold storage business. GCSPL, incorporated in 1987, provides cold-storage facility to potato farmers and traders. The company is owned by the West Bengal-based Dolui family, who has experience of two and a half decades in the same line of business. GCSPL's cold storage, with capacity of about 42,960 tonnes divided into five chambers, is located in Paschim Medinipur (West Bengal). The average utilisation of the company's storage capacity during 2011-12 (refers to financial year, April 1 to March 31) was over 95 per cent. J.R.D. INT'L: CRISIL Assigns 'B-' Rating to INR70MM Loan -------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to the bank facilities of J.R.D. International Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Cash Credit 70 CRISIL B-/Stable Export Packing Credit 15 CRISIL A4 The ratings reflect JRD's weak financial risk profile marked by a high total outside liabilities to tangible net worth (TOL/TNW) ratio, weak debt protection metrics, and a small net worth, large working capital requirements, low operating margin due to exposure to intense competition in a fragmented rice industry, susceptibility to government regulations, dependence on uneven rainfall, and vulnerability to volatility in rice prices. These rating weaknesses are partially offset by the extensive experience of JRD's promoters in the rice industry and their established relations with customers. Outlook: Stable CRISIL believes that JRD's credit risk profile will remain constrained by its small cash accruals and large working capital requirements. The outlook may be revised to 'Positive' in case of improvement in the company's liquidity or scale of operations or a significant improvement in its gearing, most likely through more-than-expected cash accruals, or large, fresh equity infusion by the promoters. Conversely, the outlook may be revised to 'Negative' in case of weakening in JRD's profitability and pressure on revenues, or further weakening in liquidity due to larger-than-expected working capital requirements. About J.R.D. International JRD was promoted in February 2010 by Mr. Raman Aggarwal and his two sons, Mr. Raghav Aggarwal and Mr. Gaurav Aggarwal. The company trades in rice. It procures rice mainly from JR Agro Tech Pvt Ltd (JRA; rated 'CRISIL D/CRISIL D') and sells it under its own brands to distributors across India. Around 70 per cent of JRD's revenues come from sale of branded rice, while the remainder is from trading in rice. Prior to starting JRD, the promoters have had experience of over 30 years through JRA, which was established by Mr. Raman Aggarwal's father in 1957. JRD's profit after tax (PAT) and net sales are estimated at INR3 million and INR609 million respectively for 2011-12 (refers to financial year, April 1 to March 31); it reported a PAT of INR2 million on net sales of INR389 million for 2010-11. KRISHNA INDUSTRIAL: Delays in Loan Payment Cues CRISIL D Rating --------------------------------------------------------------- CRISIL has assigned its 'CRISIL C/CRISIL A4' ratings to the bank facilities of Krishna Industrial Corporation Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Cash Credit 40 CRISIL C Letter of Credit 110 CRISIL A4 The ratings reflect the delays by KICL in servicing its debt (not rated by CRISIL). The delays have been caused by the company's weak liquidity resulting from stretched subsidy receivables. The ratings also factor in KICL's average financial risk profile marked by a high gearing and weak debt protection metrics. The company, however, benefits from the experience of its promoter in the fertiliser industry. Krishna Industrial Corporation Ltd was established as a public limited company in 1947 by Mr. Velagapudi Ramakrishna. It commenced operations via its carbon di-oxide (soda gas) plant at Vuyyuru (Andhra Pradesh). In the 1960s, the company diversified into the business of manufacturing single superphosphate and sulphuric acid. In 1987, it diversified into the business of providing computer software packages to clients in Europe under the Kassoft brand. KICL is currently managed by Mr. S R K Prasad (grandson of Mr. Velagapudi Ramakrishna), who is also involved in its day-to-day operations. The company operates in three divisions: fertiliser and chemical, industrial gas, and computer software packages. KICL derives close to 90 per cent of its revenues from its fertiliser and chemical division. KICL reported a profit after tax (PAT) of INR3.7 million on net sales of INR470.9 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR6 million on net sales of INR387.9 million for 2010-11. LEELOTTAM INDUSTRIES: CRISIL Puts 'B' Rating on INR250MM Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facility of Leelottam Industries Private Limited (LIPL). Amount Facilities (INR Mln) Ratings ---------- --------- ------ Proposed Long-Term 250 CRISIL B/Stable Bank Loan Facility The rating reflects LIPL's exposure to execution and funding risks in respect of its ongoing oil mill project. These rating weaknesses are partially offset by the extensive experience of the promoters in the oil extraction industry and their established contacts with oil refining units in and around Khamgaon. Outlook: Stable CRISIL expects LIPL to maintain its business risk profile on the back of extensive experience of promoters and their established relationships with the oil refining units in Khamgaon. The outlook may be revised to 'Positive' if the company successfully implements the project without any time or cost overruns and is able to generate revenues and cash accruals commensurate with its debt servicing commitments. Conversely, the outlook may be revised to 'Negative' if there are delays in implementation or it faces challenges in attaining the optimal level of capacity utilization, thereby impairing its debt servicing ability. About Leelottam Industries Leelottam Industries Private Limited was incorporated by Mr. Uttamchand Goenka, and his two sons Mr. Rohit Goenka and Mr. Amit Goenka in 2009. The company is executing a project of installing an oil mill unit for processing and manufacturing of seed oil, cake and black seed. The primary oil seed to be used is cotton seed. The capacity of the proposed factory is estimated at 288 tons per day. The project is estimated to cost INR155 million funded by bank debt of INR 75 million. LIPL aims to complete the construction of the factory by November 2012 and commence operations from December 2012. The factory is located at Khamgaon, Maharashtra which is a major cotton growing region, and is a favorable location for many oil refineries. The promoters have been involved in the business of oil extraction since 18 years through group companies. PITAMBARA AGRI: CRISIL Rates INR57.5MM Term Loan at 'CRISIL B-' --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' rating to the term loan facility of Pitambara Agri Sciences Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Term Loan 57.5 CRISIL B-/Stable The rating reflects PAPL's susceptibility to risks associated with implementation of its ongoing project, its expected weak financial risk profile, marked by small net worth, high gearing, and below-average debt protection metrics, and its expected small scale of operations in a highly competitive dairy industry. These rating weaknesses are partially offset by the benefits that PAPL derives from the assured offtake for its proposed output and the operational efficiencies resulting from its own production of fodder and fully automated facilities. Outlook: Stable CRISIL believes that PAPL will benefit over the medium term from the assured offtake for its proposed output. The outlook may be revised to 'Positive' in case of timely completion of project along with better-than-expected cash accruals during the initial phase of operations. Conversely, the outlook may be revised to 'Negative' in case of time or cost overruns in implementation of project or lower-than-expected cash accruals during the initial phase of operations or further debt-funded capital expenditure (capex), resulting in pressure on PAPL's liquidity. Incorporated in 2011, PAPL is currently setting up a fully automated dairy farm in Mau district (Uttar Pradesh), which will comprise about 500 Holstein-Friesian cows and a combined capacity to produce about 6000 litres of milk per day. Civil work and installation of machinery on the farm is expected to be completed around December 2012. The commercial production is expected to commence with the purchase of the first batch of cows in January 2013 and the remaining procurements will be completed in batches by June 2013. The project involves a total outlay of about INR76.7 million, of which about INR6.5 million of capex has been completed till date. R.R. DWELLINGS: CRISIL Assigns 'B+' Rating to INR180MM Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the term loan bank facility of R.R. Dwellings Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Term Loan 180 CRISIL B+/Stable The rating reflects RRDPL's weak financial risk profile, and exposure to demand and implementation risks, geographically concentrated revenue profile, and exposure to risks and cyclicality inherent in the Indian real estate industry. These rating weaknesses are partially offset by the benefits that the company derives from its promoters' extensive experience in the real estate industry and its established regional presence. Outlook: Stable CRISIL believes that RRDPL will continue to benefit over the medium term from its established regional presence and its promoters' experience in the real estate business. The outlook may be revised to 'Positive' if the company reports significant improvement in its business and financial risk profiles, supported by more-than-expected customer advances and timely implementation of its on-going project leading to healthy cash accruals. The outlook shall be revised to 'Negative' if RRDPL reports a time and cost overrun in its on-going project or significant pressure on its liquidity in case of delays in receiving customer advances, leading to pressure on its revenues and profitability. About R.R. Dwellings R.R. Dwellings Pvt Ltd, incorporated in 2008, is a part of the Lucknow (Uttar Pradesh)-based RR group of companies. The RR group is a joint venture between two entities, namely Tirath Housing (TH) and PeeKay Builders Pvt Ltd. Both TH and PBPL have completed various residential and commercial projects under the joint venture, as well as in their individual capacities in the past, in Lucknow. RRDPL is currently executing a residential project named Celebrity Gardens at Sushant Golf City at Sultanpur Road in Lucknow (Uttar Pradesh). Sushant Golf City is a township of 2000 acres, with a golf course surrounding the residential and commercial areas. The construction of Celebrity Gardens commenced in January 2011, after the group's promoters purchased residential FSI of around 540,000 square feet (sq ft) from Ansal API for building around 280 flats. The project is divided into two parts; first being blocks A, B, C, D, E (comprising around 300,000 sq ft of residential space) and the second being blocks L, M, Q, R (comprising around 240,000 sq ft of residential space). The project is expected to be completed by 2014-15 (refers to financial year, April 1 to March 31). TRANSTECH GREEN: Fitch Cuts Rating on INR406MM Term Debt to 'D' --------------------------------------------------------------- Fitch Ratings has downgraded India-based Transtech Green Power Ltd.'s INR406 million senior bank term debt to National Long-Term 'Fitch D(ind)' from 'Fitch BB-(ind)'. The Outlook was previously Negative. The downgrade reflects many instances of delays by TGPL in meeting principal and interest obligations in the six months ended June 2012. The company's biomass-based thermal power project operated below expectations during June 2011-June 2012, as illustrated by an average plant load factor (PLF) of 37.6% against a Fitch base case breakeven PLF of 68%. This is largely due to technical glitches with boiler and a significant rise in fuel cost that is not reflected in the project's power tariff. Fitch notes that sponsor group companies have injected additional equity of INR259.5m and unsecured loans of INR150m into the project to support its cash flows. To address structural cash flow problems, one of the two lenders has sanctioned a loan restructuring proposal that envisages, among other things, a two-year moratorium and a higher interest rate. Fitch views the restructuring as coercive in terms of its distressed debt exchange criteria since absent this restructuring, the project's cash flows would not have been adequate to meet scheduled debt service commitments. Fitch understands that the other bank in the syndicate is also considering a restructuring proposal. The agency will assess the post-default credit profile of the project and take an appropriate rating action as and when a sanction is received and modified loan documents are executed with both banks to reflect the restructuring. TGPL operates a 12MW biomass-based power plant in the Jalore district of Rajasthan. Commercial operations date was achieved on Oct. 31, 2010, but the plant has been operating at sub-optimal PLF levels. According to the terms of the 20-year power purchase agreement, the state-owned off-taker utility revised tariffs for biomass plants to INR5.33/unit in December 2011, benchmarking to the fuel cost of INR1,830/tonne. This would improve the economic viability of the project. The project is sponsored by Teltech Finsec group, having interests in telecom and fertilisers. TATA STEEL: S&P Affirms 'BB' Corp Credit Rating; Outlook Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services revised the outlooks on India- based Tata Steel Ltd. and its U.K-based subsidiary Tata Steel UK Holdings Ltd. to negative from stable. Standard & Poor's also affirmed its 'BB' long-term corporate credit rating on Tata Steel and its 'BB' issue rating on the company's senior unsecured notes. "At the same time, we affirmed the 'B+' long-term and 'B' short-term corporate credit ratings on TSUKH. We also lowered the recovery rating on TSUKH's GBP3.53 billion bank loan to '2' from '1' and the issue rating to 'BB-' from 'BB'," S&P said. "We revised the outlooks to reflect the poor performance of Tata Steel's wholly owned European subsidiary, TSUKH," said Standard & Poor's credit analyst Suzanne Smith. "We assess Tata Steel on a consolidated basis, including TSUKH, which represents about half of the company's total consolidated assets. We expect the company's consolidated profit margin to continue to be weak, resulting in its debt-to-EBITDA ratio staying above 4.0x, until the company's India operations receive the full benefit of a recently commissioned 3 million tons annual capacity. These benefits are expected to accrue only in the fiscal year ending March 31, 2014," S&P said. "We may lower the rating on Tata Steel if the company's consolidated operating performance does not recover in line with our expectations. This is likely to be due to further slowing in the European operations. A double dip in the European economy or worsening steel industry conditions in India would result in EBITDA per ton of about US$300 or lower, further hurting Tata Steel's financial ratios," S&P said. "We may revise the outlook to stable when we expect the company to improve its operating performance in line with our earlier expectations, resulting in a ratio of adjusted debt to EBITDA of about 4x and funds from operations to adjusted debt of more than 15%," S&P said. "In our view, the European steel industry will continue to face soft demand and excess steelmaking capacity for the next one to two years. We therefore expect TSUKH to continue to have a very low margin of 2.3% in the fiscal year ending March 31, 2013," S&P said. "Although we expect Tata Steel's EBITDA to increase in fiscal 2013, it will still be below our earlier expectations,' said Ms. Smith. 'Limited pricing flexibility, slower-than-expected growth in sales at the India operations following brownfield capacity expansion, and lower volumes in Europe will keep EBITDA margin at about 12% in fiscal 2013." "We also expect Tata Steel to generate negative free operating cash flow of Indian rupees 60 billion in fiscal 2013, resulting in only a gradual recovery in the company's financial metrics. We expect the ratio of debt to EBITDA to recover to 4.5x in fiscal 2013 and 3.5x in fiscal 2014. In our view, the improvement will be mostly driven by growth at the India operations," S&P said. "We assess Tata Steel's liquidity as 'adequate,' as defined in our criteria. We expect that Tata Steel has adequate resources and willingness to ensure that liquidity at TSUKH is also adequate," S&P said. "We lowered the recovery rating based upon a lower stressed EBITDA that we use to value TSUKH at our hypothetical point of default in fiscal 2016. This reflects the weak economic and challenging steel industry conditions in Europe," S&P said. TEAMEC CHLORATES: CRISIL Puts 'B' Rating on INR453MM Loans ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Teamec Chlorates Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------ Long-Term Loan 423 CRISIL B/Stable Bank Guarantee 50 CRISIL A4 Cash Credit 30 CRISIL B/Stable The ratings reflect TCL's below-average financial risk profile, marked by a highly leveraged capital structure and weak debt protection metrics. The ratings also factor in the company's start up nature of operations, and exposure to risks related to shortage of power leading to lower operating rates. These rating weaknesses are partially offset by the benefits that TCL derives from the healthy demand prospects for sodium chlorate in the domestic market and its promoter's extensive experience in the industrial chemical products segment. Outlook: Stable CRISIL believes that TCL will continue to benefit over the medium term from its promoter's extensive experience in the chemicals industry. The outlook may be revised to 'Positive' if the company significantly ramps up its scale of operations and improves its operating profitability, resulting in an improvement in cash accruals and capital structure. Conversely, the outlook may be revised to 'Negative' if TCL reports weakening of its liquidity, most likely because of lower-than-expected production of sodium chlorate, or if the company undertakes a large, debt-funded, capital expenditure programme, thereby deteriorating its financial risk profile. About Teamec Chlorates TCL, established in 2009, commenced commercial production in November 2011. It manufactures sodium chlorate, which is used as a bleaching agent in paper manufacturing. The company has a fully automated plant in Ongol (Andhra Pradesh), with capacity of 32 tonnes per day. TCL is a 49 per cent subsidiary of Dr. Rao Holding Investments Pvt Ltd, Singapore; the remaining stake in TCL is held by its promoter. Other entities associated with TCL include Titanium Equipment and Anode Manufacturing Company Ltd and Chemfab Alkalis Ltd, which manufacture titanium fabrication equipment and industrial chemical products respectively; these entities are managed independently. Currently, TCL's daily operations are managed by Mr. Suresh Krishnamoorthy Rao. TCL, on a provisional basis, posted a net loss of INR15.5 million on net sales of INR41.7 million for 2011-12 (refers to financial year, April 1 to March 31). ================= I N D O N E S I A ================= KAWASAN INDUSTRI: Fitch Puts Final 'B' Rating on 5Yr Senior Notes ----------------------------------------------------------------- Fitch Ratings has assigned PT Kawasan Industri Jababeka Tbk's (Jababeka, 'B'/Stable) proposed five-year senior unsecured notes a final 'B' rating. The amendments to the key terms and conditions of the senior unsecured notes, mainly the inclusion of a repayment schedule, additional financial covenant and changes in permitted indebtedness, did not materially impact projected cash flows to service the senior unsecured notes. The final rating is in line with the expected rating assigned on 10 July 2012. Jababeka's 'B' Issuer Default Rating reflects the high quality of its development with the provision of ancillary facilities, and its landbank that is adequate for five years of development at the current pace of sales. The proposed bond issue will significantly improve Jababeka's debt maturity profile. These positives are counterbalanced by Jababeka's small size, concentration risk arising from its Cikarang estate contributing to bulk of its sales and the inherent cyclicality of property development. Fitch also notes that while the company does not face liquidity constraints at the moment, it does not maintain significant excess cash balances that higher-rated property developers do as a liquidity buffer. The Stable Outlook reflects Fitch's expectation that Jababeka will be able to maintain the marketing sales momentum of its industrial estate business in the short-to-medium-term, due to favorable economic conditions and robust foreign direct investments. ========= J A P A N ========= PEGASUS FUNDING: S&P Lowers Ratings on 3 ABL Classes to 'CC' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered to 'CC (sf)' its ratings on the class A1, A2, and class B asset-backed loans (ABLs) extended in September 2006 under the Pegasus Funding transaction. "The ABLs extended under this securitization transaction are backed by real estate-backed loan receivables that were issued primarily to small and midsize real estate companies. All the loan receivables that remain at this point have defaulted. The servicer is proceeding with liquidation and collection activities for the related collateral properties, in line with the business plan that the transaction parties approved," S&P said. S&P lowered its ratings on all the ABLs extended under this transaction because, in its view, the ABLs are now even more likely to default. S&P bases this view on these factors: * The liquidation of the collateral properties has progressed. However, the combined outstanding principal on the class A1 and A2 ABLs exceeds the combined outstanding principal on the underlying loan receivables for which the related collateral properties remain unsold. Moreover, S&P expects any future amount recovered through the liquidation of the remaining properties to be considerably lower than the combined outstanding principal on these loans. * The amount of collection proceeds from the collateral properties for which sales have been completed is extremely low. In addition, S&P believes that any amount likely to be recovered in the future will be very small. "The ratings reflect our opinion on the likelihood of the full and timely payment of interest and the ultimate full repayment of principal on the ABLs by the transaction's legal final maturity date in December 2014," S&P said. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS LOWERED Pegasus Funding JPY120 billion ABLs (total initial extendable amount) due December 2014 Class To From Initial extendable amount Class A1 CC (sf) CCC+ (sf) JPY40.0 bil. A2 CC (sf) CCC+ (sf) JPY51.9 bil. Class B CC (sf) CCC- (sf) JPY28.1 bil. The issue date of the transaction was Sept. 29, 2006. ========= K O R E A ========= SK HYNIX: Fitch Says Profitability to Continue ---------------------------------------------- Fitch Ratings says it expects SK Hynix Inc.'s (Hynix, 'BB'/Stable) profitability to continue following a successful EBIT turnaround in Q212. However, Fitch believes that margin recovery in H212 will be limited as the operating environment remains tough. "After three consecutive quarters of operating losses, Hynix has finally returned to profitability mainly due to cost reduction and dynamic random access memory price increases since February 2012 following Elpida Inc.'s filing for bankruptcy protection," said Alvin Lim, Associate Director in Fitch's Asia Pacific Telecom, Media, and Technology team. "However, Fitch does not foresee any significant improvement in the industry cycle due to a weak economic environment and prevalent over-supply in both the DRAM and NAND markets," added Mr. Lim. The commodity DRAM market is unlikely to show a meaningful recovery in the short term due to weak growth in personal computer sales. In addition, the price of DRAM fell again in July 2012 despite chip makers' conservative capacity expansion and industry consolidation. Prices of higher-margin mobile DRAM also continue to fall as suppliers have aggressively increased output. Hynix's NAND business, which accounted for 22% of total revenue in Q212, also suffered; prices fell 19% in Q212 due to substantial over-supply in the market. Fitch notes Toshiba Corporation's ('BBB-'/Stable) plan to reduce output by 30% will help improve the supply/demand balance in H212. However, this also indicates that the NAND business is likely to remain suppressed in the short term amid the subdued global economy. Fitch forecasts Hynix's financial profile will remain commensurate with the current rating despite the unfavorable industry conditions. This is because the company's cost structure will continue to improve due to manufacturing process improvements, helping to mitigate weak demand. In addition, its high cash balance of KRW3trn at end-Q212 and forecast cash flow from operations (CFO) of over KRW3trn should comfortably cover its annual capex plan of KRW4.2trn in 2012. Therefore, the company's funds flow from operations (FFO) adjusted leverage should remain below 2x over the next 12-18 months. Fitch will consider a negative rating action if FFO adjusted leverage increases above 3x (2011: 1.7x) or if EBIT margin (2011: 3.1%) weakens on a sustained basis. In addition, any indication of weakening ties between parent SK Telecom (SKT, 'A-'/Stable) and Hynix may also result in a negative rating action, as Hynix's ratings currently factor in a notch of implied support from SKT. Conversely, Fitch will consider a positive rating action if Hynix's FFO-adjusted leverage remains below 2x, and/or if EBIT margin rises above 6% with positive free cash flow generation on a sustained basis. Hynix recorded 10% revenue growth q-o-q to KRW2.63trn in Q212. The company's EBIT improved to KRW23bn (0.9% margin) from a loss of KRW260bn (-11% margin) during the same period. ==================== N E W Z E A L A N D ==================== AORANGI SECURITIES: Charity Misses Out on Hubbard's Will -------------------------------------------------------- Emma Bailey at The Timaru Herald reports that charitable causes have missed out on any bequests from the late Allan Hubbard's will. The Timaru Herald relates that while earlier wills allowed for any money left over in his estate to go to charity, his last will -- written five months after statutory managers moved in -- names his wife Jean as the sole beneficiary, and writes off some loans. The Timaru Herald has obtained a copy of his will, signed on November 10, 2010, from the Timaru District Court. According to The Timaru Herald, the two-page will directs the remainder of his estate is to go to Mrs. Hubbard but this was subject to any "memorandum of wishes I may leave as to the disposal of any part of my residual estate". The report relates that Timaru lawyer Edgar Bradley, who prepared the will, said that at the time of Mr. Hubbard's death there was no memorandum of wishes. "There was no memorandum in the end. He had made one with a previous will but this was no longer in place," the report quotes Mr. Bradley as saying. According to the report, Mr. Bradley said it would be a long time before the value of Mr. Hubbard's estate was known, with a number of entities said to be contesting it. About Aorangi Securities Aorangi Securities Ltd was incorporated in 1974 and is solely controlled by the Hubbards. On June 20, 2010, Aorangi Securities and seven charitable trusts were placed into statutory management, and Allan and Jean Hubbard were also placed into statutory management as "associated persons" of those entities. The seven charitable trusts included in the statutory management are Te Tua, Otipua, Oxford, Regent, Morgan, Benmore and Wai-iti. Trevor Thornton and Richard Simpson of Grant Thornton were appointed as statutory managers. The Temple Bar Family Trust and Barns Charitable Trust were also put into statutory management in September 2010 on recommendation from the Securities Commission. Hubbard Churcher Trust Management and Forresters Nominees Company were also added to the list of businesses under management by Trevor Thorton, Richard Simpson and Graeme McGlinn, of Grant Thornton, on September 20, 2010. On June 20, 2011, the Serious Fraud Office laid 50 charges under Crimes Act against Allan Hubbard in relation to its investigation into the affairs of Aorangi Securities Ltd; Hubbard Management Funds; and ASL directors Allan and Margaret (Jean) Hubbard. The SFO dropped the fraud charges against Allan Hubbard following Mr. Hubbard's death on Sept. 2, 2011. Mrs. Hubbard was also removed from statutory management, effective on Nov. 13, 2011. Aorangi's statutory managers said 400 investors in the mortgage lender owed NZ$96 million were likely to face a substantial shortfall as many loans were in default. So far, statutory managers have paid just 12 cents in the dollar, The Timaru Herald reports. BRIDGECORP LTD: Investors to Get Second Interim Dividend -------------------------------------------------------- The Receivers of Bridgecorp Limited on Friday announced a second interim dividend to Bridgecorp's secured investors of NZ$20.6 million (4.5 cents in the dollar). "Payment will be made in the week starting August 20, 2012. This will bring the total distributions to date to eight (8) cents in the dollar," Bridgecorp Receiver PwC Partner Colin McCloy says. The receivers acknowledge further distributions remain dependent upon the outcome of legal proceedings in respect of the actions of directors and other parties prior to the receivership. Mr. McCloy adds, "With the Financial Market Authority's criminal proceedings against the directors having now concluded, the receivers' civil claim, which was filed in January 2012, is now proceeding through the Court." 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). ********* 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 ***