/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120808.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, August 8, 2012, Vol. 15, No. 157 Headlines A U S T R A L I A AUSTASIA MILLING: Administrators Put Business on the Market BROADLANDS FINANCE: S&P Affirms 'CCC/C' Issuer Credit Ratings PETS PARADISE: Franchisees Face Trouble as Business up Sale PINK POMEGRANATE: In Administration, Cuts More Than 1,600 Jobs H O N G K O N G CENTRAL BILLION: Court to Hear Wind-Up Petition on Aug. 22 DAO WO: Court to Hear Wind-Up Petition on Sept. 19 FIRST REGENT: Court to Hear Wind-Up Petition on Aug. 8 FULL BENEFIT: Court to Hear Wind-Up Petition on Aug. 22 GRAND TEXTILE: Court to Hear Wind-Up Petition on Aug. 22 H.K. FULLSON: Creditors' Proofs of Debt Due Aug. 17 LLS CREATION: Court to Hear Wind-Up Petition on Sept. 12 M.F. PRINTING: Stephen Liu Yiu Keung Steps Down as Liquidators NAM HWA: Court to Hear Wind-Up Petition on Aug. 22 PURIDET (ASIA): Court to Hear Wind-Up Petition on Sept. 19 SHINWA MAX: Creditors Get 4.5928% Recovery on Claims SUNRIVER TECHNOLOGY: Court to Hear Wind-Up Petition on Sept. 12 VAN YU: Court to Hear Wind-Up Petition on Aug. 8 WAL SHION: Court to Hear Wind-Up Petition on Aug. 29 WELLJOY INC: Court to Hear Wind-Up Petition on Aug. 22 I N D I A AIR INDIA: Cabinet Approves Delivery of 27 Boeing 787 Dreamliner AIR INDIA: To Resume International Operations by Month-End ANDRA PRADESH: Inadequate Info Cues Fitch to Migrate Ratings CROWN CORP: Fitch Assigns 'BB-' National LongTerm Rating CROWN REALTECH: Delay in Loan Payment Cues CRISIL Junk Ratings DYNATRON SERVICES: Fitch Assigns 'BB-' National Longterm Rating GINNI GLOBAL: CRISIL Cuts Rating on INR220MM Loans to 'D' HARYANA FOILS: ICRA Suspends 'B+' Rating on INR17.75cr Loan K BHUPAL: Fitch Assigns Nat'l Long-Term Rating at 'BB-' KINGFISHER AIRLINES: AAI Denies Lessor Bid to Take Back Aircraft K.P. GARMENTS: CRISIL Assigns 'B+' Rating to INR400MM Loans MANJEERA HOTELS: Inadequate Info Cues Fitch to Migrate Ratings MIDFIELD INDUSTRIES: Inadequate Info Cues Fitch to Migrate Rating OM SAI: CRISIL Assigns 'CRISIL B+' Rating to INR74MM Loans P. K. & Co: ICRA Reaffirms '[ICRA] B+' Rating on INR35cr Loans PLAMA DEVELOPERS: CRISIL Assigns 'B' Rating on INR300MM Loans PLASTOLENE POLYMERS: Fitch Assigns 'D' Rating on Two Bank Loans SANCO INDUSTRIES: ICRA Cuts Rating on INR8cr Loans to '[ICRA]B+' SANMAAN AGRO: CRISIL Assigns 'B' Rating to INR100MM Loans SRI PARAMESWARI: Delays in Loan Payment Cues ICRA Junk Ratings J A P A N HUMMINGBIRD SERIES 2: S&P Puts 'CCC' Rating on Class #2 on Watch JAPAN AIRLINES: Seeks $8.5 Billion IPO in Turnaround N E W Z E A L A N D B'ON FINANCIAL: Jury Trial Begins; Bradley Faces 75 Charges X X X X X X X X * Moody's Says Asian Liquidity Stress Index Up in July 2012 * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= AUSTASIA MILLING: Administrators Put Business on the Market ----------------------------------------------------------- SmartCompany reports that flour mill and stock feed business Aust Asia Milling is on the market after entering administration last month with AUD9 million in debt. According to the report, John Vouris -- jvouris@lawlerpartners.com.au -- and Bradley Tonks -- btonks@lawlerpartners.com.au -- of Lawler Partners were appointed as administrators on July 27 and the business was yesterday advertised for sale "as a going concern." Mr. Vouris told SmartCompany Aust Asia Milling had a turnover of AUD16.6 million last year but had been experiencing financial difficulties and so was nearing insolvency. "There's a whole raft of causes including droughts, floods which affect the wheat prices and the availability of wheat," the report quotes Mr. Vouris as saying. "But also the company has been hit by a few court cases which are either pending or unsuccessful . . . the main one is in relation to a contaminated feed lot, which is in the process of getting to court now and involves millions of dollars." According to the report, Mr. Vouris said the bank is owed nearly AUD4 million, which includes AUD3 million on the property and AUD1 million to debtors. Debtors are factored through the National Australia Bank. Aust Asia Milling's debts also include around AUD5 million in unsecured creditors, which includes the growers and trade creditors. "There were 35 full-time staff but we have reduced staff levels because one of our customers has pulled the pin claiming 'uncertainty of the administration process'. But we are buoyed by the rest of customers supporting the company," Mr. Vouris told SmartCompany. SmartCompany notes that Aust Asia Milling is now down to 30 staff and Lawler Partners is proceeding to trade on with a view to a deed of company arrangement or sale of the business as a going concern. A creditors' meeting will be held today, Aug. 8, in the county town of Young in New South Wales and Mr. Vouris said the administrator has already received expressions of interest, SmartCompany adds. Established in 1888, AustAsia Milling Pty Ltd -- http://www.austasiamilling.com/-- is a supplier in the flour milling, stockfeed and grain industries. The 124-year-old business also trades as Young Stock Feeds. BROADLANDS FINANCE: S&P Affirms 'CCC/C' Issuer Credit Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services said its 'CCC/Negative/C' issuer credit rating on New Zealand-based Broadlands Finance Ltd. has been affirmed, and then withdrawn at the request of the issuer. PETS PARADISE: Franchisees Face Trouble as Business up Sale -------------------------------------------------------------- SmartCompany reports that the appointment of receivers to Pets Paradise last week did not include stores operated by franchisees, but franchising experts warn there are still difficult times ahead for franchisees. SmartCompany says the Pets Paradise and Billy Baxter's businesses, which include the franchise networks, were both advertised for sale by the receivers Deloitte on Aug. 2 as Deloitte moved to ease franchisees' concerns. "Everything is being done to assure the franchisees are protected as far as what is happening to the company," a spokesperson for Deloitte told SmartCompany. According to the report, Deloitte partner Tim Norman on Aug. 3 held a conference call with franchisees, who were said to be "appreciative" of the update and of a number of initiatives and offers to support them. "These include discounts on stock ordered from head office and, during the receivership, discounts on royalty payments," the spokesperson told SmartCompany. SmartCompany relates that Deloitte has received "strong interest" from "a large number of parties" since the demise of the Pets Paradise and Billy Baxter's businesses, which include the franchise networks, have been advertised from sale. However, Jason Gehrke, director of the Franchise Advisory Centre, warned the receivership could result in problems for franchisees and the value proposition of the Pets Paradise brand, the report relays. As reported in the Troubled Company Reporter-Asia Pacific on Aug. 2, 2012, SmartCompany said Pets Paradise has been placed into receivership after the Bank of Melbourne seized control of the ailing chain of 62 pet stores controlled by Gary Diamond. The Bank of Melbourne, which is owed AUD11 million, on July 31 appointed Deloitte as receivers to Pets Paradise, part of Diamond's Paradise Retail Holdings group. Deloitte Restructuring Services partners Tim Norman, Sal Algeri and John Greig have been appointed as receivers and managers of a number of companies in the Pets Paradise and Billy Baxter's restaurants group of companies. Mr. Norman said stores operated by franchisees are not in receivership. Based in Melbourne, Australia, The Paradise Retail Holdings group runs 62 stores under the Pets Paradise, Pet Goods Direct and Pets R Fun brands. It has 170 staff across its operations. PINK POMEGRANATE: In Administration, Cuts More Than 1,600 Jobs -------------------------------------------------------------- SmartCompany reports that Pink Pomegranate has gone into administration closing 650 stores while cutting and more than 1,600 jobs. Pink Pomegranate, which is trading as Treehouse Childrens Decor Co. was placed in administration on July 16, with BRI Ferrier appointed, according to SmartCompany. The report notes that BRI Ferrier is attempting to sell the business, claiming it has a large database, along with an established online sales channel and a warehouse/outlet store in Marrickville, NSW. SmartCompany notes that the sale of the business comes as the retail market continues to struggle. Pink Pomegranate is a children's retail business with three stores specializing in furniture, home wares and accessories has entered administration, after trading for more than 12 years. ================ H O N G K O N G ================ CENTRAL BILLION: Court to Hear Wind-Up Petition on Aug. 22 ---------------------------------------------------------- A petition to wind up the operations of Central Billion Inc. will be heard before the High Court of Hong Kong on Aug. 22, 2012, at 9:30 a.m. Vinbless Inc. filed the petition against the company on Nov. 14, 2011. The Petitioner's solicitors are: Pang & Associates Unit 1406, Cosco Tower 183 Queen's Road Central, Hong Kong DAO WO: Court to Hear Wind-Up Petition on Sept. 19 -------------------------------------------------- A petition to wind up the operations of Dao Wo Enterprises Limited will be heard before the High Court of Hong Kong on Sept. 19, 2012, at 9:30 a.m. New Ray Plastic & Metal Limited filed the petition against the company on July 16, 2011. The Petitioner's solicitors are: Yuen & Partners 10th Floor, Chiyu Bank Building 78 Des Voeux Road Central, Hong Kong FIRST REGENT: Court to Hear Wind-Up Petition on Aug. 8 ------------------------------------------------------ A petition to wind up the operations of First Regent Limited will be heard before the High Court of Hong Kong on Aug. 8, 2012, at 9:30 a.m. Mark William Corrado filed the petition against the company on June 1, 2012. The Petitioner's solicitors are: Hastings & Co 5/F, Gloucester Tower The Landmark 11 Pedder Street Central, Hong Kong FULL BENEFIT: Court to Hear Wind-Up Petition on Aug. 22 ------------------------------------------------------- A petition to wind up the operations of Full Benefit Property Corp. will be heard before the High Court of Hong Kong on Aug. 22, 2012, at 9:30 a.m. Fancymind Inc. filed the petition against the company on Nov. 14, 2011. The Petitioner's solicitors are: Pang & Associates Unit 1406, Cosco Tower 183 Queen's Road Central, Hong Kong GRAND TEXTILE: Court to Hear Wind-Up Petition on Aug. 22 -------------------------------------------------------- A petition to wind up the operations of Grand Textile Company Limited will be heard before the High Court of Hong Kong on Aug. 22, 2012, at 9:30 a.m. Winbless Inc. filed the petition against the company on Nov. 14, 2011. The Petitioner's solicitors are: Pang & Associates Unit 1406, Cosco Tower 183 Queen's Road Central, Hong Kong H.K. FULLSON: Creditors' Proofs of Debt Due Aug. 17 --------------------------------------------------- Creditors of H.K. Fullson Company Limited, which is in members' voluntary 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: Lai Kar Yan (Derek) Darach E. Haughey 35th Floor, One Pacific Place 88 Queensway, Hong Kong LLS CREATION: Court to Hear Wind-Up Petition on Sept. 12 -------------------------------------------------------- A petition to wind up the operations of LLS Creation Limited formerly known as Kingston International Creation Limited will be heard before the High Court of Hong Kong on Sept. 12, 2012, at 9:30 a.m. Shafiq Mohammad filed the petition against the company on July 10, 2012. The Petitioner's solicitors are: Massie & Clement 8th Floor, On Hing Building No. 1 On Hing Terrace Central, Hong Kong M.F. PRINTING: Stephen Liu Yiu Keung Steps Down as Liquidators -------------------------------------------------------------- Lam Hok Chung Rainier stepped down as liquidators of M.F. Printing Company Limited on June 25, 2012. NAM HWA: Court to Hear Wind-Up Petition on Aug. 22 -------------------------------------------------- A petition to wind up the operations of Nam Hwa Textiles Limited will be heard before the High Court of Hong Kong on Aug. 22, 2012, at 9:30 a.m. Fancymind Inc. filed the petition against the company on Nov. 14, 2011. The Petitioner's solicitors are: Pang & Associates Unit 1406, Cosco Tower 183 Queen's Road Central, Hong Kong PURIDET (ASIA): Court to Hear Wind-Up Petition on Sept. 19 ---------------------------------------------------------- A petition to wind up the operations of Puridet (Asia) Limited will be heard before the High Court of Hong Kong on Sept. 19, 2012, at 9:30 a.m. Tsao Kwan Chak filed the petition against the company on June 16, 2012. SHINWA MAX: Creditors Get 4.5928% Recovery on Claims ---------------------------------------------------- Shinwa Max Limited will declare the first and final dividend to its creditors on Aug. 13, 2012. The company will pay 4.5928% for ordinary claims. The company's liquidators are: Ho Man Kit Horace Kong Sze Man Simone Room 511, 5/F Tower 1, Silvercord 30 Canton Road Tsim Sha Tsui Kowloon, Hong Kong SUNRIVER TECHNOLOGY: Court to Hear Wind-Up Petition on Sept. 12 --------------------------------------------------------------- A petition to wind up the operations of Sunriver Technology Company Limited will be heard before the High Court of Hong Kong on Sept. 12, 2012, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on July 11, 2012. The Petitioner's solicitors are: K. W. Ng & Co 11/F, Wings Building 110 Queen's Road Central, Hong Kong VAN YU: Court to Hear Wind-Up Petition on Aug. 8 ------------------------------------------------ A petition to wind up the operations of Van Yu Trading Company Limited will be heard before the High Court of Hong Kong on Aug. 8, 2012, at 9:30 a.m. Mark Willian Corrado filed the petition against the company on June 1, 2011. The Petitioner's solicitors are: Hasting & Co 5/F, Gloucester Tower The Landmark, 11 Pedder Street Central, Hong Kong WAL SHION: Court to Hear Wind-Up Petition on Aug. 29 ---------------------------------------------------- A petition to wind up the operations of Wal Shion and Company Limited will be heard before the High Court of Hong Kong on Aug. 29, 2012, at 9:30 a.m. The Petitioner's solicitors are: Y.S. Lau & Partners 7th Floor, Hing Yip Commercial Centre 272-284 Des Voeux Road Central, Hong Kong WELLJOY INC: Court to Hear Wind-Up Petition on Aug. 22 ------------------------------------------------------ A petition to wind up the operations of Welljoy Inc. will be heard before the High Court of Hong Kong on Aug. 22, 2012, at 9:30 a.m. The Petitioner's solicitors are: Pang & Associates Unit 1406, Cosco Tower 183 Queen's Road Central, Hong Kong ========= I N D I A ========= AIR INDIA: Cabinet Approves Delivery of 27 Boeing 787 Dreamliner ---------------------------------------------------------------- Business Today reports that the Cabinet Committee on Economic Affairs (CCEA) has approved a Ministry of Civil Aviation proposal allowing Air India to take delivery of 27 Boeing 787 Dreamliner aircraft after signing the Delay Compensation Settlement Agreement. Air India would benefit from the induction of the latest state- of-art technology Boeing aircraft, which are more fuel efficient than its competitors, the report says. According to Business Today, the decision delinks the issue relating to compensation for failure to meet performance guarantees from the Delay Compensation Settlement Agreement, which will be negotiated separately by an empowered group of officers after actual evaluation of the performance of the B-787 aircraft inducted into Air India. Business Today says Air India is planning to induct 27 B-787 aircraft in its fleet as part of the contracted deliveries of the aircraft from Boeing. These aircraft were scheduled to be delivered from September 2008 to October 2011. However, due to certain design and production issues, these aircraft were delayed and are now scheduled to be delivered between June 2012 and March 2016, Business Today notes. About Air India Air India Ltd -- http://www.airindia.com/-- transports passengers throughout India and to more than 40 destinations throughout the world. Affiliate Air India Express operates as a low-fare carrier, mainly between India and destinations in the Middle East, and Air India Cargo provides freight transportation. The government of India has merged Air India with another state- controlled carrier, Indian Airlines, which has focused on domestic routes. The combined airline, part of a new holding company called National Aviation Company of India, uses the Air India brand. The new Air India and its affiliates have a fleet of more than 110 aircraft altogether. * * * The Troubled Company Reporter-Asia Pacific, citing the Hindustan Times, reported on June 19, 2009, that Air India has been bleeding cash due to excess capacity, lower yield, a drop in passenger numbers, an increase in fuel prices and the effects of the global slowdown. Air India had debt of INR42,570 crore and accumulated losses of INR22,000 crore as of March 31, 2011, according to livemint.com. In April 2012, the Union Cabinet approved an operational turnaround plan through an equity infusion of INR30,000 crore (US$5.8 billion) over the next eight years. "The Cabinet Committee on Economic Affairs (CCEA) has approved the turnaround plan (TAP) and financial restructuring plan (FRP) of Air India, under which the government will infuse INR30,000 crore into the airline by 2020-21, subject to certain milestones that AI will have to meet," civil aviation minister Ajit Singh said. AIR INDIA: To Resume International Operations by Month-End ---------------------------------------------------------- Press Trust of India reports that state-owned Air India will resume most of its international operations by the end of the month. The airline was forced to scale down its international operations massively following the recent two-month strike by a section of pilots, the report says. "We will be ready to restart our full international operations by the end of August. We will restore New York, Chicago and Paris flights by then . . . Also resume flights to Hong Kong and Shanghai," an airline official was quoted by PTI as saying. Air India will also add more services to the busy Southeast Asian regions by mid-August, the news agency relates. PTI recalls that around 400 pilots, members of the now de- recognised Indian Pilots Guild (IPG), had gone on a 58-day strike from May 7 to protest the decision to allow the erstwhile Indian Airlines pilots to train on the Boeing Dreamliners. The strike, according to PTI, forced Air India to cancel several profit-making as well as loss-making sectors, which caused a loss of around INR600 crore in unrealised sales to the already cash- strapped airline, which is sitting on a debt of INR67,000 crore. About Air India Air India Ltd -- http://www.airindia.com/-- transports passengers throughout India and to more than 40 destinations throughout the world. Affiliate Air India Express operates as a low-fare carrier, mainly between India and destinations in the Middle East, and Air India Cargo provides freight transportation. The government of India has merged Air India with another state- controlled carrier, Indian Airlines, which has focused on domestic routes. The combined airline, part of a new holding company called National Aviation Company of India, uses the Air India brand. The new Air India and its affiliates have a fleet of more than 110 aircraft altogether. * * * The Troubled Company Reporter-Asia Pacific, citing the Hindustan Times, reported on June 19, 2009, that Air India has been bleeding cash due to excess capacity, lower yield, a drop in passenger numbers, an increase in fuel prices and the effects of the global slowdown. Air India had debt of INR42,570 crore and accumulated losses of INR22,000 crore as of March 31, 2011, according to livemint.com. In April 2012, the Union Cabinet approved an operational turnaround plan through an equity infusion of INR30,000 crore (US$5.8 billion) over the next eight years. "The Cabinet Committee on Economic Affairs (CCEA) has approved the turnaround plan (TAP) and financial restructuring plan (FRP) of Air India, under which the government will infuse INR30,000 crore into the airline by 2020-21, subject to certain milestones that AI will have to meet," civil aviation minister Ajit Singh said. ANDRA PRADESH: Inadequate Info Cues Fitch to Migrate Ratings ------------------------------------------------------------ Fitch Ratings has migrated India-based jute fabric manufacturer Andhra Pradesh Fibres Limited's 'Fitch BB-(ind)' National Long- Term rating with a Stable Outlook to the non-monitored category. The ratings have been migrated to the non-monitored category due to lack of adequate information, and Fitch will no longer provide ratings or analytical coverage of AP Fibres. The ratings will remain in the non-monitored category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six- month period, the ratings could be reinstated and will be communicated through a rating action commentary. Fitch has also migrated AP Fibres' bank loan ratings to the non- monitored category as follows: -- INR70m fund-based working capital limits: migrated to National Long-term 'Fitch BB-(ind)nm' from 'Fitch BB-(ind)' and National Short-Term 'Fitch A4+(ind)nm' from 'Fitch A4+ (ind)' -- INR5m non-fund-based working capital limits: migrated to National Short-Term 'Fitch A4+(ind)nm' from 'Fitch A4+(ind)' -- INR39.6m term loan: migrated to National Long-Term 'Fitch BB-(ind)nm' from 'Fitch BB-(ind)' CROWN CORP: Fitch Assigns 'BB-' National LongTerm Rating -------------------------------------------------------- Fitch Ratings has assigned India's defense products exporter Crown Corporation Private Limited a National Long-Term rating of 'Fitch BB-(ind)' with Stable Outlook. The rating is constrained by the irregular nature of CCPL's revenue and significantly high customer concentration, as 100% of revenue is derived from a single customer. The company is currently engaged in the export of submarine batteries to the Ministry of Defence, Algeria. The rating is also constrained by CCPL's dependence on a single supplier, the limited number of alternative Indian suppliers, and forex risks on exports. The rating is, however, supported by CCPL's 20 years of experience in the export of defence equipment, as well as a long- standing relationship with its clients. The rating also derives comfort from the nature of CCPL's current trading business which has resulted in positive operational cash flow with low working capital requirements. Fitch notes that the company does not require any long-term or fund-based banking facilities for its trading operations and currently has only unsecured loans form its founders as debt. In addition, minimal operational costs result in the company able to report profit, through rental and other income, even in the absence of revenue from defence orders. The ratings also derive comfort from the limited technical risk borne by CCPL on equipment supplied, due to the pass through of such risk to contract manufacturers and/or suppliers. What Could Trigger A Rating Action? Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- gross interest coverage below 1.5x on a sustained basis due to an unexpected increase in debt levels or deterioration of operating profitability Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- an increase in the size and stability of revenue and cash flow along with credit metrics remaining at same level Established in 1978, CCPL is engaged in the export of defence products. The company reported nil revenue from defence orders in FY10-FY11. It subcontracts its order to a domestic vendor. FY12 provisional results indicate revenue of INR454m (FY11: INR44m), net income of INR53m (FY11: INR2m), and interest coverage of above 2x. The company has two subsidiaries -- Dynatron Services Private Limited ('Fitch BB-(ind)'/Stable) and Crown Infracon Private Limited. CROWN REALTECH: Delay in Loan Payment Cues CRISIL Junk Ratings -------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/ CRISIL D' ratings to the bank facilities of Crown Realtech Pvt Ltd. The ratings reflect instances of delay by CRPL in servicing its debt; the delays have been caused by the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 18 CRISIL D (Assigned) Term Loan 445 CRISIL D (Assigned) CRPL is also exposed to project risk. This rating weakness is partially offset by the CRPL's promoters' extensive industry experience. About Crown Realtech CRPL, formerly Bhagat Steel & Forgings Pvt Ltd, is a part of the Crown group, which is promoted by Mr. R S Gandhi and develops moderate-sized commercial and residential real estate projects in and around Delhi and the National Capital Region. BSFPL was set up in 1983 and had an industrial land in Faridabad (Haryana), which was acquired by the Crown group in 2005-06 (refers to financial year, April 1 to March 31), followed by acquisition of an adjoining industrial land, which was under the name of a partnership firm, M/s Khosla Foundaries. In 2009, the name of the company was changed to CRPL. CRPL is developing an information technology park, Abacus Technopark, in Faridabad, which will cover an area of 0.628 million square feet (sq ft); the total project cost was expected to be around INR1260 million. However, due to time overrun and increase in the scope of the project to 0.693 million sq ft, the project cost is expected to escalate to around INR1500 million. Construction of the project commenced in 2009 and is now expected to complete by March 2013. The project is being funded in a debt- equity ratio of 1.34 times (excluding customer advances). DYNATRON SERVICES: Fitch Assigns 'BB-' National Longterm Rating --------------------------------------------------------------- Fitch Ratings has assigned India's Dynatron Services Private Limited a National Long-Term rating of 'Fitch BB-(ind)'. The Outlook is Stable. Dynatron's main business is to provide after- sales-support for diesel engines, gear transmissions, electronic control and monitoring systems to the Indian Navy and Indian Coast Guard. The rating is constrained by Dynatron's small scale of operations, falling profitability and high customer concentration risk. Provisional unaudited financials for FY12 (year end March) indicate revenue of INR139m (FY11: INR143m) and EBITDA margin of 16.7% (FY11: 22.9%). The company generates about 90% of its revenue by supplying spare parts and providing after-sales- support services to the Indian Navy and Indian Coast Guard. However, Fitch draws some comfort from Dynatron's long-standing ties with the Indian Navy and Indian Coast Guard. The company has been serving these defense departments for over 25 years and signs multi-year contracts with the Indian Coast Guard to service the diesel engines on their vessels. The existing three-year contract will expire in March 2015. The rating factors in Dynatron's agreements with several international defense vendors to provide after-sales-support for their products being used by Indian defense departments. The rating is further supported by the company's strong credit metrics and comfortable liquidity as demonstrated by its net cash position of INR22m at end-FY12. However, credit metrics are expected to worsen in the short to medium term as the company plans to raise debt to fund its upcoming ship repair facility in Karwar, Karnataka, for the Indian Navy and Indian Coast Guard vessels located around the region. The facility will provide a new growth opportunity to the company and also help in diversification of its revenue base. What Could Trigger A Rating Action? Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- a significant decline in revenue due to early termination of contract from the Indian Coast Guard -- financial leverage (adjusted net debt/EBITDA) above 4.0x on a sustained basis -- a downgrade of its parent company's - Crown Corporation Private Limited (CCPL) - rating to below 'Fitch BB-(ind)' Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- a significant increase in the scale of operations -- financial leverage below 2.5x on a sustained basis along with upgrade of its parent's (CCPL) rating. Dynatron was established in 1975 and was formerly known as Dynatron Exports Private Limited. Dynatron is majorly owned by CCPL ('Fitch BB-(ind)'/Stable), which is engaged in the export of defence products. GINNI GLOBAL: CRISIL Cuts Rating on INR220MM Loans to 'D' --------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Ginni Global Pvt Ltd to 'CRISIL D' from 'CRISIL B-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL D (Downgraded from 'CRISIL B-/Stable') Term Loan 215 CRISIL D (Downgraded from 'CRISIL B-/Stable') The downgrade reflects instances of delay by GGPL in servicing its debt; the delays have been caused by weakening in the company's liquidity. The company's project implementation schedule for its two hydroelectric (hydel) projects was disrupted due to landslides in the region; while the Balsio project has commenced operations, the Taraila project is expected to commence operations from August, 2012. These delays have led to a lower than expected build-up of liquidity for servicing debt obligations. The company's interest payments for June 2012 have not been paid. The ratings continue to reflect GGPL's weak financial risk profile, marked by weak liquidity, and susceptibility to risks inherent in hydel projects, such as hydrology- and natural- calamity-related risks. These rating weaknesses are partially offset by GGPL's exposure to low offtake-related risks, as it has a long-term power purchase agreement (PPA) with Himachal Pradesh State Electricity Board (HPSEB) - there is no price related risk associated with the main raw material, water. About Ginni Global Ginni Global Pvt Ltd was established in 1989 by Ginni International Ltd as an investment company. Later, GGPL operated as a trading arm for GIL's textile products. GIL is a textile company established by Mr. Sharad Jaipuria in 1984 in Neemrana (Rajasthan). In 1999-2000 (refers to financial year, April 1 to March 31), GIL obtained licenses for setting up hydel projects in Taraila and Balsio from the Government of HP (GoHP) under the Small Hydro Projects Self Identified Scheme (SHPSIS). GIL transferred these licenses to GGPL in 2002. The hydel projects are of 5.0-megawatt capacity each and are located in the Chamba district of HP. Both the projects are run- of-the-river projects, with the Taraila project across the Taraila Nallah and the Balsio project across the Balsio Nallah, both of which are tributaries of the Ravi River. Both the projects are part of SHPSIS, under which GGPL will receive incentives announced by GoHP and the Ministry of Non-conventional Energy Sources (MNES) for small hydroelectric power projects. GGPL has signed a 40-year PPA with HPSEB, at INR2.50 per unit (no escalation clause). The Balsio Project began operations in June 2012 and the Taraila project is likely to be completed by August 2012. HARYANA FOILS: ICRA Suspends 'B+' Rating on INR17.75cr Loan ----------------------------------------------------------- ICRA has suspended [ICRA]B+ rating assigned to the INR17.75 crore fund based facilities & [ICRA]A4 rating assigned to the INR2 crore, short term, non-fund based letter of credit and bank guarantee facilities of Haryana Foils Limited. The suspension follows ICRA's inability to carry out a rating surveillance in the absence of the requisite information from the company. According to its suspension policy, ICRA may suspend any rating outstanding if in its opinion there is insufficient information to assess such rating during the surveillance exercise. ICRA will withdraw the rating in case it remains under suspension for a period of three years. K BHUPAL: Fitch Assigns Nat'l Long-Term Rating at 'BB-' ------------------------------------------------------- Fitch Ratings has assigned India's K Bhupal Contractors a National Long-Term rating of 'Fitch BB-(ind)'. The Outlook is Stable. The ratings are constrained by KBC's low profit margins due to low value addition in the business -- the firm bids for small size civil contracts. The ratings also reflect the vulnerability of the profit margins to volatility of input prices. Provisional results for FY12 (year end March) indicate EBITDA margin declining to 4.8%, due to an increase in input prices, after being in the range of 7.5%-8.5% during FY08-FY11. The ratings are supported by KBC's over 18 years of experience in the civil construction business and its deteriorated though comfortable credit metrics in FY12. Interest cover (EBITDA / interest) declined to 4.60x in FY12 (FY11: 7.52x) as higher interest payments of INR4m (INR1.8m) more than offset an increase in EBITDA to INR18m (INR13m). This along with a decline in debt levels to INR34m in FY12 from INR38m in FY11 resulted in financial leverage (debt/EBITDA) improving slightly to 1.86x from 2.84x. What Could Trigger A Rating Action? Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- interest cover below 2.0x or debt/EBITDA beyond 3.0x Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- a sustained improvement in EBITDA margin above 8.5% while maintaining interest cover and leverage at the current levels K Bhupal Contractors was established in 1993 as a sole proprietorship. The company undertakes contracts for laying pipelines for drinking water and sewerage, mainly under the National Rural Drinking Water Programme, in the states of Andhra Pradesh and Karnataka. In FY12, revenue was INR385m (FY11: INR167m). Fitch has also assigned ratings to KBC's bank loans as follows: -- INR30m fund-based working capital limits: National Long-Term 'Fitch BB-(ind)' -- INR60m non-fund-based working capital limits: National Short-Term 'Fitch A4+(ind)' KINGFISHER AIRLINES: AAI Denies Lessor Bid to Take Back Aircraft ---------------------------------------------------------------- The Times of India reports that the Airport Authority of India (AAI) has refused to allow the lessors to take back about half a dozen aircraft rented out to Kingfisher Airline, sources said. The report relates that the lessors want the aircraft back as Kingfisher Airlines has defaulted on rentals. "AAI has said no . . . to Kingfisher lessors to allow them to take back six aircraft parked at Chennai airport," sources, as cited by TOI, said. According to the report, one of the lessors has sent a legal notice to AAI for not passing the releasing order. TOI relates that AAI's contention is that it cannot let the aircraft go, as it too has to recover dues of about INR300 crore on account of landing and parking fees from the near-bankrupt KFA. An AAI spokesperson confirmed the development, and added that the authority is exploring several options to recover its long- pending dues, the report relays. TOI notes that the airline, which has not paid salaries to its employees for the past five months (some have not been paid for six months), has been defaulting on payments to AAI, oil companies, aircraft leasing companies and the government tax authorities. 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. Kingfisher lost INR4.44 billion (US$90.1 million) in the fiscal third quarter that ended in December 2011, 74.8% more than a loss of INR2.54 billion a year earlier, The Economic Times disclosed. The company has lost INR11.8 billion (US$240 million) in the first nine months of the current fiscal year that ends in March, a 35% rise from a year earlier. K.P. GARMENTS: CRISIL Assigns 'B+' Rating to INR400MM Loans ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facilities of K.P. Garments Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 240.00 CRISIL B+/Stable (Assigned) Proposed Long-Term 160.00 CRISIL B+/Stable (Assigned) Bank Loan Facility The rating reflects KPGPL's weak financial risk profile, marked by weak capital structure and debt protection metrics, and working-capital-intensive operations. These rating weaknesses are partially offset by the benefits that KPGPL derives from its promoters' extensive experience in the textiles industry. For arriving at the ratings, CRISIL has treated KPGPL's interest- free unsecured loans of INR37.5 million, extended by the company's promoters and their friends and family, as neither debt nor equity. This is based on a specific undertaking from KPGPL's management that it will maintain these loans in the business over the next five years. Outlook: Stable CRISIL believes that KPGPL will continue to benefit over the medium term from its promoters' experience in the textile industry. The outlook may be revised to 'Positive' if the company improves its financial risk profile by improving its capital structure or profitability, and reports better working capital management. Conversely, the outlook may be revised to 'Negative' if KPGPL reports a significant decline in its revenues and margins, deterioration in its working capital management, or undertakes a larger-than-expected debt-funded capital expenditure programme. About K.P. Garments K.P. Garments Pvt Ltd was set up in 1999 as a proprietary concern by Mr. Hiren Panchal; it was reconstituted as a private limited company in 2005. The company manufactures ready-made garments and trades in silk, linen, and cotton and denim yarn. KPGPL has its manufacturing facility in Kolkata (West Bengal). MANJEERA HOTELS: Inadequate Info Cues Fitch to Migrate Ratings -------------------------------------------------------------- Fitch Ratings has migrated India-based Manjeera Hotels and Resorts Limited's 'Fitch B-(ind)' National Long-Term rating with a Stable Outlook to the non-monitored category. This rating will now appear as 'Fitch B-(ind)nm' on the agency's website. The ratings have been migrated to the non-monitored category due to lack of adequate information, and Fitch will no longer provide ratings or analytical coverage of MHRL. The ratings will remain in the non-monitored category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six-month period, the ratings could be reinstated and will be communicated through a rating action commentary. Fitch has also migrated MHRL bank loan ratings to the non- monitored category as follows: -- INR15m fund-based working capital limits: migrated to National Long-Term 'Fitch B-(ind)nm' from 'Fitch B-(ind)' and National Short-Term 'Fitch A4(ind)nm' from 'Fitch A4(ind)' -- INR305m non-fund-based working capital limits: migrated to National Short-Term 'Fitch A4(ind)nm' from 'Fitch A4(ind)' -- INR845.4m term loans: migrated to National Long-Term 'Fitch B-(ind)nm' from 'Fitch B-(ind)' MIDFIELD INDUSTRIES: Inadequate Info Cues Fitch to Migrate Rating ----------------------------------------------------------------- Fitch Ratings has migrated India-based steel straps manufacturer Midfield Industries Limited's 'Fitch C(ind)' National Long-Term rating to the non-monitored category. The ratings have been migrated to the non-monitored category due to lack of adequate information, and Fitch will no longer provide ratings or analytical coverage of Midfield. The ratings will remain in the non-monitored category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six- month period, the ratings could be reinstated and will be communicated through a rating action commentary. Fitch has also migrated Midfield's bank loan ratings to the non- monitored category as follows: -- INR320m fund-based working capital limits: migrated to National Long-term 'Fitch C(ind)nm' from 'Fitch C(ind)' and National Short-Term 'Fitch A4(ind)nm' from 'Fitch A4(ind)' -- INR92.5m non-fund-based working capital limits: migrated to National Short-Term 'Fitch A4(ind)nm' from 'Fitch A4(ind)' -- INR106.7m term loans outstanding: migrated to National Long- Term 'Fitch C(ind)nm' from 'Fitch C(ind)' OM SAI: CRISIL Assigns 'CRISIL B+' Rating to INR74MM Loans ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long term bank facilities of Om Sai Cotton Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B+/Stable (Assigned) Term Loan 24 CRISIL B+/Stable The rating reflects OSCI's modest scale of operations in a fragmented industry, subdued financial risk profile, marked by a low net worth base and high gearing and susceptibility of operating margins to fluctuations in cotton prices and regulatory changes. These weaknesses are partially offset by the extensive experience of OSCI's promoters in the cotton industry. Outlook: Stable CRISIL believes that OSCI will continue to benefit over the medium term from the experience of its promoters in the cotton industry. The outlook may be revised to 'Positive' if the company reports higher-than-expected revenues while maintaining its profitability and improving its capital structure. Conversely, the outlook may be revised to 'Negative' in case of a decline in OSCI's revenues or profitability, or if the company undertakes a large, debt-funded capital expenditure programme, resulting in deterioration in the company's financial risk profile. About Om Sai OSCI was setup in 2010 as a partnership firm by Mr. B. Parameswar, Mr. H.J. Reddy, Mr. H.V. Reddy, Mrs. C. Aruna and Mrs. G. Swathi. The firm is engaged in cotton ginning and pressing activity. Previously, Mr. B. Parameswar had been actively engaged in cotton trading activity. The company processes raw cotton (kappas) in to cotton bales and cotton seeds and caters to domestic markets of Kerala, Andhra Pradesh and Maharashtra. The company has a ginning and pressing unit based in Warangal Dist. (Andhra Pradesh) having an installed capacity of producing 240 bales per day. P. K. & Co: ICRA Reaffirms '[ICRA] B+' Rating on INR35cr Loans -------------------------------------------------------------- ICRA has reaffirmed the long term rating of '[ICRA]B+' to the INR5.00 crore1 fund based bank facilities and INR30.00 crore non fund based bank facilities of P. K. & Co. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund Based Limit- 5.00 [ICRA]B+ reaffirmed Cash Credit Non Fund Based Limit- 30.00 [ICRA]B+ reaffirmed Bank Guarantee The rating reaffirmation takes into account the modest size of PKC's operation, highly competitive nature of the construction industry wherein business is procured on an L1 based contract awarding system which results in low profitability, high client and geographical concentration risks and the risk associated with the entity's status as a partnership firm including the risk of capital withdrawals by the partners. Moreover, the rating is further affected by the significant increase in working capital intensity of its operations in 2011-12, primarily due to decrease in advances from customers and high level of debtors and inventory, which has affected the liquidity of the firm. The rating, however, continues to derive comfort from the long track record of the partners in the construction business, PKC's moderate gearing and its established position in the North East. P. K. & Co, incorporated in 1992 as a partnership firm, is promoted by the Agarwala family based out of Guwahati. PKC is a government registered road and bridge contractors and has executed various small and medium scale construction projects in the north eastern part of India. Recent Results The firm reported a net profit of INR2.15 crore in FY12 on an operating income of INR31.07 crore (provisional), as compared to a net profit of INR2.23 crore on an operating income of INR32.23 crore during FY11. PLAMA DEVELOPERS: CRISIL Assigns 'B' Rating on INR300MM Loans ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Plama Developers Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 260 CRISIL B/Stable (Assigned) Bank Loan Facility Term Loan 40 CRISIL B/Stable (Assigned) The rating reflects PDL's exposure to risk related to completion and funding of its ongoing projects, accentuated by the fact that substantial construction cost is yet to be expended for the majority of its ongoing projects although the company has received moderate bookings for these projects. The ratings also factor in PDL's susceptibility to inherent risks, including cyclicality, in the real estate industry in India. These rating weaknesses are partially offset by the moderate track record of PDL's promoters in the real estate industry and the company's moderate financial risk profile marked by low gearing. Outlook: Stable CRISIL believes that PDL will remain sensitive to any delay in inflow of customer advances for the majority of its ongoing projects. The outlook may be revised to 'Positive' if there is more-than-expected booking of units and receipt of customer advances, leading to larger-than-expected cash inflows for PDL. Conversely, the outlook may be revised to 'Negative' if PDL's liquidity deteriorates, caused most likely by delays in receipt of customer advances or time or cost overruns in its existing projects, or by other large projects undertaken by the company simultaneously. About Plama Developers Plama Developers Ltd, promoted by Mr. P M A Razak in 2006, is engaged in real estate development. The company was promoted to acquire the business of its promoter's proprietorship concern, PLAMA City Homes. Till date, PDL has executed seven real estate projects, all in Mangalore (Karnataka). Currently, the company is implementing eight ongoing projects in cities such as Mangalore, Bengaluru (Karnataka), and Calicut and Thrissur (both in Kerala). For five out of its eight ongoing projects, PDL has received booking for more than 50 per cent of total units available for sales. PDL reported a profit after tax (PAT) of INR53.2 million on net sales of INR395.7 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR40.7 million on net sales of INR352.5 million for 2010-11. PLASTOLENE POLYMERS: Fitch Assigns 'D' Rating on Two Bank Loans --------------------------------------------------------------- Fitch Ratings has assigned ratings to India-based Plastolene Polymers Pvt. Ltd.'s (PPPL) additional bank loans as follows: -- INR81m fund-based limits: National Long-Term 'Fitch D(ind)' -- INR15m non-fund-based limits: National Short-Term 'Fitch D(ind)' PPPL's outstanding ratings (including the above) are as follows: -- National Long-Term Rating: 'Fitch D(ind)' -- INR493m fund-based limits: National Long-Term 'Fitch D(ind)' -- INR40m non-fund based limits: National Short-Term 'Fitch D(ind)' SANCO INDUSTRIES: ICRA Cuts Rating on INR8cr Loans to '[ICRA]B+' ---------------------------------------------------------------- ICRA has revised the long-term rating of Sanco Industries Limited from '[ICRA]BB+' to '[ICRA]B+' for INR8.0 crore1 bank lines. ICRA has also revised the short-term rating from '[ICRA]A4+' to '[ICRA]A4' for INR7.0 crore non fund based facilities of SIL. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Working Capital Limits 6.75 [ICRA]B+ revised Unallocated 1.25 [ICRA]B+ revised Non Fund Based 7.00 [ICRA]A4 revised The rating action factors in the stretched liquidity profile of SIL, increase in its debt levels, and deterioration in debt coverage indicators in FY2012. The working capital intensity of the company increased (NWC/OI increased from 42% in FY2011 to 57% in FY2012) largely due to build-up of receivables, which resulted in consistently high utilization of the working capital limits and reliance on ad-hoc limits. Further, the investments made by the company in FY2012 also led to the increase in funding requirements and thus the debt levels. The ratings also take into consideration SIL's sizeable debt repayment obligations in FY2013, which coupled with its modest level of internal accruals expose the company to refinancing risk. Further, the ratings continue to remain constrained by the intensely competitive nature of the industry which limits the pricing flexibility of the industry participants; SIL's moderate scale of operations; and the vulnerability of the company's profitability to raw material price volatility and foreign exchange fluctuation risk, given that a significant part of the raw material requirement is met through imports. However the ratings draw comfort from the long experience of the promoters in the PVC industry; SIL's diverse product portfolio; and its healthy profitability supported by income tax and excise duty exemptions at its manufacturing facility in Himachal Pradesh. Going forward, ability of the company to meet its repayment liabilities during FY2013; and reduce the working capital intensity of the business through improved working capital management would remain the key rating sensitivities. Sanco Industries Limited is a public limited company promoted by Mr. Sanjay Gupta in 1989. The entire shareholding of the company is held by Mr. Sanjay Gupta and his family members. SIL is engaged in manufacturing of PVC (Polyvinyl Chloride) pipes, profiles, PVC Insulated wires and cables. The manufacturing unit of the company is located at Paonta Sahib, Himachal Pradesh. The present installed capacity is 3000 tonnes per annum (TPA) of PVC pipes and 18000 Km per annum (KMPA) of PVC Wires & Cables. Recent Results For FY2012, SIL has achieved an operating income of INR40.1 crore and a net profit of INR2.3 crore. SANMAAN AGRO: CRISIL Assigns 'B' Rating to INR100MM Loans --------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of Sanmaan Agro Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B/Stable (Assigned) Warehouse Receipts 30 CRISIL B/Stable (Assigned) The rating reflects SAI's weak financial risk profile, marked by high gearing and weak debt protection metrics, small scale of operations in the intensely competitive rice processing industry, and susceptibility to volatility in raw material prices, adverse monsoon conditions, and to adverse regulatory changes in the rice sector. These rating weaknesses are partially offset by the benefits that the firm derives from its promoters' extensive experience and healthy growth prospects of the rice industry. Outlook: Stable CRISIL believes that SAI will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if SAI improves its financial risk profile, driven most likely by more-than-expected net cash accruals and infusion of funds by the partners at the firm. Conversely, the outlook may be revised to 'Negative' if SAI reports significant deterioration in its liquidity or capital structure, or pressure on its profitability. About Sanmaan Agro Industries SAI was established as a partnership firm in 2000 by Mr. Zora Singh and Mr. Himmat Singh in Jalalabad (Punjab). The firm is mainly engaged in milling and marketing higher grade varieties of rice, such as basmati and non-basmati varieties, such as Parmal. The firm has milling capacity of 4 tonnes per hour. Its current capacity utilisation is about 75 per cent. The firm derives more than 70 per cent of its revenues from sale of basmati rice and the rest from sale of the non-basmati variants. SAI sells its produce to exporters in the domestic open market. Thus, around 80 per cent of SAI's production is thus indirectly exported; the company sells the rest of its produce directly in domestic clients. SAI reported a net profit of Rs 0.6 million on net sales of INR375 million for 2011-12 (refers to financial year, April 1 to March 31), against net profit of INR0.3 million on net sales of INR227 million for 2010-11. SRI PARAMESWARI: Delays in Loan Payment Cues ICRA Junk Ratings -------------------------------------------------------------- ICRA has revised the rating outstanding on the INR40.00 crore term loan facilities and INR20.00 crore1 of long term fund based facilities of Sri Parameswari Spinning Mills Private Limited from '[ICRA]B+' to '[ICRA]D'. ICRA has also revised the rating outstanding on the INR10.72 crore of short term non-fund based facilities of the Company from '[ICRA]A4' to '[ICRA]D'. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loans 40.00 Revised to [ICRA]D from [ICRA]B+ Long term fund 20.00 Revised to [ICRA]D from based facilities [ICRA]B+ Short term non-fund 10.72 Revised to [ICRA]D from based facilities [ICRA]A4 The revision in ratings reflects the delays in debt servicing by the Company, owing to the deterioration in financial profile. The Company's accruals and liquidity profile were impacted, following the slowdown witnessed in the spinning industry during 2011-12. Fall in yarn realization on account of weak demand and inventory losses incurred during H1, 2011-12 has impacted operational and financial performance of the Company. Considering the intense competition in a fragmented spinning industry within which the Company operates the Company's earnings and margins are exposed to pricing inflexibility and volatility in yarn prices. The ratings factor in the management's experience in spinning industry. Sri Parameswari Spinning Mills Private Limited, was formed in July 1980 by Mr. Veluchamy through the takeover a sick unit - Kamaraj Spinning Mills Private Limited. The Company's name was changed to Sinnamani Spinning Mills Limited in 1983 and to the present one in 1995. The Company operates a cotton spinning unit in Pandalgudi, Tamil Nadu. The Company has been adding spindles over years and currently has an installed capacity of 90,984 spindles. ========= J A P A N ========= HUMMINGBIRD SERIES 2: S&P Puts 'CCC' Rating on Class #2 on Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed on CreditWatch with positive implications its rating on Hummingbird Securitisation Ltd.'s series 2 loan synthetic collateralized debt obligation (CDO) transaction. "As part of our surveillance of synthetic CDO transactions, we conduct a formal review every month to determine whether upgrades or downgrades are appropriate. Typically, an initial credit committee at the beginning of each month reviews synthetic CDO tranches for potential CreditWatch placements. As a result of the initial committee's review in early August, we placed the rating on the series 2 loan on CreditWatch positive. The rating action reflects the tranche's synthetic rated overcollateralization (SROC) level, which exceeded 100% and meets our minimum required cushion at a higher rating than the current rating as of July 31, 2012," S&P said. "We intend to review the tranche listed below with the rating that we placed on CreditWatch positive, along with any other tranches with ratings that are presently on CreditWatch negative or positive, at our second credit committee review by the end of this month," 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 RATING PLACED ON CREDITWATCH POSITIVE Hummingbird Securitisation Ltd. Series 2 loan Class To From Issue amount #2 Loan CCC (sf)/Watch Pos CCC (sf) JPY3.0 bil. JAPAN AIRLINES: Seeks $8.5 Billion IPO in Turnaround ---------------------------------------------------- Chris Cooper and Kiyotaka Matsuda at Bloomberg News report that Japan Airlines Co. will seek JPY663 billion (US$8.5 billion) in the second biggest initial public offering this year, completing a two-year turnaround from bankruptcy into the world's most profitable carrier. According to the report, the airline will list on the Tokyo Stock Exchange on Sept.19, it said in an Aug. 3 Ministry of Finance filing. Its government-backed owner will sell 175 million shares at a tentative price of 3,790 yen apiece. That values the carrier at about five times projected profit, less than half All Nippon Airways Co.'s about 12-times valuation. The report relates the biggest initial public offering since Facebook Inc.'s marks JAL's return after former Chairman Kazuo Inamori slashed jobs, cut debt and retired older, less fuel- efficient aircraft to revive profit. The proceeds will be used to return 350 billion yen to the state-backed turnaround body that invested in the airline, while the government will get the remainder, a windfall of as much as 313 billion yen at the tentative price. "The turnaround has been done extremely well," said Peter Harbison, executive chairman at the Sydney-based Centre for Asia Pacific Aviation. "They've done a lot of sensible things in reducing routes and corporate complexity that dragged it down." according to the report The report notes that JAL, which will get no money from the sale, reiterated its profit forecast of 130 billion yen for the year ending March 31, compared with 40 billion yen at larger Tokyo- based rival ANA. The global average valuation for airlines worth at least $5 billion is 10 times estimated earnings, according to data compiled by Bloomberg. The report relays JAL will displace ANA as the world's fourth- largest airline by market value after the offering, according to current values and the tentative share-sale price. Latam Airlines Group SA is the largest at $11.3 billion, followed by Air China Ltd. At $10.9 billion and Singapore Airlines Ltd. at $10.1 billion. According to the report, the airline, which exited bankruptcy court administration in March 2011, slashed dozens of flights during restructuring, including services to Milan, Rome and Amsterdam, as it retired its fleet of Boeing Co. 747 planes and other aircraft. It cut 28 international routes and 41 domestic ones over the three years to the end of March 2011. The bankrupt carrier cut about a third of its workforce, about 16,000 people, under the leadership of Inamori, who is now chairman emeritus, more than double the number suggested by the previous president Haruka Nishimatsu. About Japan Airlines Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-based company mainly engaged in the provision of air transport services. The Company is active in five business segments through its 203 subsidiaries and 83 associated companies. JAL International Co. Ltd. is a wholly owned operating subsidiary of Japan Airlines Corporation. Japan Airlines Corporation, Japan Airlines International Co., Ltd. and JAL Capital Co., Ltd., on Jan. 19, 2010, filed the petitions to commenced corporate reorganization proceedings with the Tokyo District Court. The Court appointed the Enterprise Turnaround Initiative Corporation of Japan and Eiji Katayama, Esq., as reorganization trustees. Japan Airlines Corp. filed for reorganization Jan. 19, 2010, in the Tokyo District Court and filed a Chapter 15 petition in New York (Bankr. S.D.N.Y. Case No. 10-10198). The Company estimated debts at $28 billion. In November 2010, Japan Airlines reached a basic agreement with its major creditor banks on new loans of JPY284.9 billion. The airline's rehabilitation plan was approved by the Tokyo District Court at the end of the month. ==================== N E W Z E A L A N D ==================== B'ON FINANCIAL: Jury Trial Begins; Bradley Faces 75 Charges ----------------------------------------------------------- Hamish Fletcher at nzherald.co.nz reports that the trial of Jacqui Bradley, an Auckland woman accused of fleecing investors of about $15 million, started Tuesday. Ms. Bradley, who ran a financial advisory business with her now- dead husband, faces 75 Crimes Act charges in a case brought by the Serious Fraud Office. The pair's company, B'On Financial Services Ltd, collapsed in 2009. According to the report, the SFO alleges the Bradleys operated a Ponzi-type scheme and took investors' money to repay earlier investors and to fund their lifestyle. Although the SFO believed this involved tens of millions of dollars from more than 80 people, the charges relate to NZ$15 million from 28 investors, the report notes. nzherald.co.nz says Ms. Bradley on Tuesday pleaded not guilty in the Auckland District Court to the charges, including 58 of theft by person in a special relationship. Mike Bradley was to face charges with his wife but he died last year, weeks before the trial was originally due to start. The Companies Office began investigating the Bradleys in 2009 after four firms jointly run by the pair went into receivership. Although receivers sold the couple's Remuera home for more than NZ$4 million in 2010, investors have been told they are unlikely to recover much, nzherald.co.nz reports. =============== X X X X X X X X =============== * Moody's Says Asian Liquidity Stress Index Up in July 2012 ----------------------------------------------------------- Moody's Investors Service says that its Asian Liquidity Stress Index (LSI) inched up in July with 16.8% of its speculative-grade portfolio demonstrating weak liquidity compared with 16.2% in June. "The July level was the Asian LSI's fifth consecutive month at the 15%-17% level, suggesting that the deterioration in liquidity -- which commenced in the fourth quarter of last year -- may have reached a plateau," says Laura Acres, a Moody's Senior Vice President. "The index, which increases when speculative-grade liquidity appears to decrease, is at its highest level since September 2010, but is also well below the high of 37% posted during the fourth quarter of 2008 amid the financial crisis," adds Acres. Acres was speaking on the release of Moody's latest report on the index, entitled "Asian Liquidity Stress Index." "Specifically, the uptick in July reflects the addition of one company to the SGL-4 roster -- Moody's lowest speculative-grade liquidity score -- and the assignment of two corporate family ratings, which increased the denominator," says Ms. Acres. The report further notes that there was little rating activity in July, with just one corporate family rating downgrade and no upgrades. During Q2 2012, the ratio of corporate family rating downgrades to upgrades was 4:1. It was the fourth consecutive quarter where downgrades outpaced upgrades, and Q2 also showed the highest ratio of downgrades to upgrades since Q2 2009. The percentage of speculative-grade companies with a negative rating outlook or on review for downgrade remained near 35% in July. In July, the net amount of high-yield debt rated by Moody's in Asia rose to $40.7 billion from $40.5 billion in June. July also saw the first bond deal completed since April. But, for the rest of the year, debt issuance will likely remain slow as long as uncertainty in the euro area continues. If the sovereign-debt problems hurt economic growth in Asia or cause lenders to tighten their lending standards further, this will impact lending rates to speculative-grade companies and may result in deteriorating liquidity for some. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* Tuesday's edition of the TCR-AP delivers a list of 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 ***