/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120920.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, September 20, 2012, Vol. 15, No. 188 Headlines A U S T R A L I A FORTESCUE METALS: Secures $4.5 Billion Lifeline FORTESCUE METALS: Fitch Says New $4.5BB Facility Removes Pressure FORTESCUE METALS: Moody's Reviews 'Ba3' CFR for Downgrade NINE ENTERTAINMENT: Insiders Claims Receivership Talk Just Bluff ON PRODUCT: Enters Into Administration; Seeks Debt Restructuring PAPERLINX LIMITED: Chairman, Two Directors Step Down WESTGEM: Owner Suffers Set Back in Receivership Case * AUSTRALIA: Moody's Says Banks Can Withstand Unexpected Downturn B A N G L A D E S H * BANGLADESH: Moody's Says 'Ba3' Rating Outlook Stable C H I N A CHINA TEL GROUP: Issues Shares to Ironridge, Isaac and AO H O N G K O N G 832 LIMITED: Court Enters Wind-Up Order 3D-GOLD JEWELLERY: Court Enters Wind-Up Order ACE STYLE: Court Enters Wind-Up Order CSA ABSOLUTE: Blaauw and Lam Step Down as Liquidators GOLDEN GENERAL: Court Enters Wind-Up Order HIGH LINK: Court Enters Wind-Up Order JIAN MAO: Court Enters Wind-Up Order LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases LUCKY FIRST: Court Enters Wind-Up Order MUSE INTERIOR: Court Enters Wind-Up Order PS EXIM: Court to Hear Wind-Up Petition on Oct. 3 SINO DYNASTY: Court Enters Wind-Up Order SUPER ENERGY: Court Enters Wind-Up Order VILLAWOOD DEVELOPMENTS: Lai and Yeung Appointed as Liquidators YILI PLASTIC: Court to Hear Wind-Up Petition on Oct. 17 YING YUE: Court Enters Wind-Up Order I N D I A ANAND DIAGNOSTIC: CARE Rates INR7.58cr LT Loan at 'CARE BB+' BALAR SYNTHETICS: CARE Assigns 'CARE BB' Rating to INR20.9cr Loan BEJ CERAMIC: CARE Rates INR7.17cr LT Loan at 'CARE B+' BHAGYODAY AGRO: CARE Assigns 'CARE B' Rating to INR8.40cr Loan BHARAT PET: CARE Assigns 'CARE B+' Rating on INR8.13cr LT Loan BHARAT PRODUCTS: CARE Rates INR12.5cr LT Loan at 'CARE B+' CHANDRESH CABLES: CARE Rates INR18cr LT Loan at 'CARE BB' CRP TECHNOLOGIES: CARE Rates INR19.05cr Loan at 'CARE BB+' M.P.K. ISPAT: CARE Rates INR15cr LT Loan at 'CARE B+' PANCHDEEP COTTON: CARE Reaffirms 'CARE B' Rating on INR13cr Loan PANCHDEEP COTTON INDUSTRIES: CARE Reaffirms 'B' LT Rating SYSCHEM INDIA: CARE Assigns 'CARE BB-' Rating to INR15.75cr Loan J A P A N ELPIDA MEMORY: US Court Bars Firm From Selling U.S. Assets K O R E A LIG GROUP: Prosecutors Raid Offices Over Fraud Charges M O N G O L I A * MONGOLIA: Moody's Says Spending Demands Weigh on Outlook N E W Z E A L A N D CREDIT UNION: S&P Puts 'BB' Issuer Credit Rating on Watch Neg. S I N G A P O R E ITAI TECHNOLOGIES: Court Enters Wind-Up Order JFT INVESTMENT: Creditors' Proofs of Debt Due Oct. 15 JSE INVESTMENT: Creditors' Proofs of Debt Due Oct. 15 KUTAI ETAM: Court Enters Wind-Up Order MYCUBE.COM PTE.: Creditors' Meetings Set for Oct. 2 MYCUBE.COM PTE: Creditors' Proofs of Debt Due Oct. 2 - - - - - ================= A U S T R A L I A ================= FORTESCUE METALS: Secures $4.5 Billion Lifeline ----------------------------------------------- Robb M. Stewart at The Wall Street Journal reports that Fortescue Metals Group Ltd. bought more time to ride out slumping iron-ore prices, securing up to US$4.5 billion to refinance its existing debt and free the company from any immediate need to sell assets to raise funds. According to the Journal, the company said its new credit facility has delayed the company's first debt repayment until November 2015. The Journal says the lending came without banking covenants, which can set operating restrictions. According to the report, the sharp decline in iron-ore prices over the last couple of months, had sparked fears among investors that Fortescue might breach come of its loan covenants. "We have acted decisively and comprehensively," the report quotes Chief Executive Neville Power as saying in a conference call with reporters. The new facility means Fortescue can refinance all its existing bank facilities and boost its liquidity. "It is a sledgehammer to crush an ant," Mr. Power, as cited by the Journal, said. The Journal notes that concerns over Fortescue's debt have heightened as prices fell for industrial commodities including iron ore, which is used in producing steel, amid Europe's debt crisis and waning demand from China. The Journal says Fortescue this month sold a power station that supplies electricity to one of its mines in Western Australia state for US$300 million. According to the Journal, Mr. Power said the sale of other assets is being considered and that the company could bring in partners on operations or to invest in assets such as infrastructure but that there is no immediate need to raise cash. Credit Suisse and J.P. Morgan underwrote the facility, which has been secured against Fortescue's assets, the Journal discloses. Stephen Pearce, chief financial officer of the Perth-based company, declined to disclose the fees but said the overall cost will be less than the roughly 7% at which Fortescue's unsecured bonds trade, the Journal adds. About Fortescue Metals Headquartered in West Perth, Western Australia, Fortescue Metals Group Limited (ASX: FM) -- http://fmgl.com.au/-- is involved in the exploration of iron ore through a project to mine iron ore in the Chichester Ranges, in the Pilbara region of Western Australia and exporting it from Port Hedland. * * * As reported in the Troubled Company Reporter-Asia Pacific on Sept. 14, 2012, Standard & Poor's Ratings Services placed its 'BB-' corporate credit and issue ratings on Australia-based mining company Fortescue Metals Group Ltd. on CreditWatch with negative implications. The recovery rating is affirmed at '4'. FORTESCUE METALS: Fitch Says New $4.5BB Facility Removes Pressure ----------------------------------------------------------------- Fitch Ratings says that Fortescue Metals Group Limited's ('BB+'/Negative) new USD4.5 billion debt facility has removed immediate pressures on its credit profile. However, the rating remains on Negative Outlook until there is greater clarity on the speed at which the company will be able to de-leverage once it completes the capex to expand its production capacity to 155 million tonnes per annum. The USD4.5bn five-year senior secured facility, which is fully underwritten, will be used to refinance all of Fortescue's existing bank facilities totalling USD3.6bn. The refinancing removes earnings-based maintenance covenants pertaining to existing bank debt. In addition, the facility improves Fortescue's debt maturity profile and provides the company with additional liquidity. At June 30, 2012, Fortescue had USD2.3bn cash and undrawn debt capacity of USD1.9bn; it secured a further USD1.5bn capacity in August 2012. The new facility provides Fortescue with USD4.3bn of funding headroom (compared with USD3.4bn prior to the new facility) and its next major refinancing is not due until November 2015. The recent sale of the Solomon power station for USD325m provides additional liquidity. Nonetheless, the current downturn in iron ore prices and hence lower operating cash flow means Fortescue will have to take on additional debt to fund its capacity expansion. Thus, the pace of de-leveraging post capex completion will be slower than Fitch had expected earlier this year and is reflected in the Negative Outlook. The Outlook may be revised to Stable once the refinancing is completed and there is greater clarity that leverage will revert to below 2.75x after the financial year ending June 2014. Rating factors include the impact of a previously announced capex delay, the effectiveness of planned cost reductions and the possible non-core asset or minority interest sales. The new facility introduces material secured debt into Fortescue's capital structure. However, Fortescue's senior unsecured rating of 'BB+' is unaffected as secured debt to consolidated operating EBITDA is below 2.0x, and thus does not materially prejudice recoveries for lower classes of debt. FORTESCUE METALS: Moody's Reviews 'Ba3' CFR for Downgrade --------------------------------------------------------- Moody's Investors Service has announced that it is continuing its review for possible downgrade of the Ba3 corporate family rating of Fortescue Metals Group Limited and the Ba3 senior unsecured rating of FMG Resources (August 2006) Pty Ltd. Fortescue's ratings were placed on review for downgrade Aug. 30, 2012. Moody's decision to keep the ratings on review for possible downgrade follows the announcement by Fortescue that it has secured an underwritten commitment for a US$4.5 billion Senior Secured Credit Facility. Proceeds from the facility will be used to refinance all of the company's existing bank facilities of around $3.5 billion and for general corporate purposes. Fortescue stated that the new facilities have a 5-year maturity and do not contain any maintenance covenants. Ratings Rationale The Ba3 corporate family rating could be confirmed at the conclusion of the review, assuming 1) the US$4.5 billion facility is finalized on the announced terms, 2) Fortescue will maintain an adequate liquidity coverage to withstand further weakness in iron ore prices as exhibited in recent weeks, and 3) there is further clarity around plans for resuming the Kings Deposit development, which was recently suspended. The rating confirmation would also take into account Fortescue's ability to achieve the recently-announced operating cost savings. "The new credit facilities, combined with the absence of any financial maintenance covenants, will substantially address the liquidity challenges that have been facing Fortescue and that had contributed to the placement of its ratings on review for downgrade" says Matthew Moore, a Moody's AVP -- Analyst. "In addition to removing concerns around covenant pressure, the new facilities will provide around US$1.0 billion of additional liquidity and extend out debt maturities" Moore says, adding "With these new facilities, Fortescue's first debt maturity will not be until November 2015". On the other hand, the addition of significant secured debt as a result of the announced transaction could result in a lower senior unsecured rating, reflecting legal subordination. As such, the $7.0 billion of outstanding senior unsecured Notes could be lowered. Moody's recognizes that Fortescue's financial profile should improve upon successful commissioning of the expansion project, with production capacity expected to grow from 55 million tons per annum (mtpa) to 115 mtpa by mid next year. The successful completion of this expansion will support a stronger credit profile over the medium to long term. The ongoing credit profile will also be supported by further clarity around medium to long term growth initiatives. The principal methodology used in rating Fortescue Metals Group Ltd. and FMG Resources (August 2006) Pty Ltd was the Global Mining Industry Methodology published in May 2009. Fortescue Metals Group, based in Perth, is an iron ore producer engaged in the exploration and mining of iron ore for export, mainly to China. NINE ENTERTAINMENT: Insiders Claims Receivership Talk Just Bluff ---------------------------------------------------------------- Business Spectator reports the Herald Sun said that Nine Entertainment Co is unlikely to be placed in receivership as a result of the continuing argument between the owners of the television network, Goldman Sachs and hedge funds Apollo and Oaktree. Sources have told the newspaper that "common sense" will likely prevail in the debate between the lenders and Nine owner CVC Asia Pacific, according to Business Spectator. Business Spectator relates that with hopes of finding a buyer for the network all but gone, CVC has been left with only two realistic outcomes: an agreement between Goldman Sachs and the hedge funds, or receivership if Nine's management decides it is not confident enough to sign off on the group's annual accounts at the end of October or early November. Business Spectator notes that CVC, Goldman and Nine management are scrambling to restructure $2.8 billion worth debt, which must be repaid or refinanced by February. The report discloses that a source close to the situation told the Herald Sun that talks between the groups were continuing. ON PRODUCT: Enters Into Administration; Seeks Debt Restructuring ---------------------------------------------------------------- SmartCompany reports that On Product Publishing Group has entered into administration, with the administrator blaming the high costs of complying with worldwide legal and regulatory regimes. On Product entered into administration earlier this month with Kenneth Stout of Boutique Corporate Advisory appointed as administrator, according to SmartCompany. Mr. Stout told SmartCompany that On Product was seeking a deed of company arrangement which will effectively postpone its obligations when they are due and payable. On Product Publishing Group is a marketing services business which owns and developed the intellectual property rights to a concept that combines publishing with consumer packaged goods by enabling mini-magazines to be placed on bottles and packages. The company uses Labelzine - a customised product label containing a removable magazine - to attach the magazines. It counts Coca-Cola and Tetra Pak amongst its big name clients. PAPERLINX LIMITED: Chairman, Two Directors Step Down ---------------------------------------------------- smh.com.au reports that the chairman of embattled paper, sign and display supplier PaperlinX Limited has quit the board, along with two other directors. The departure of the chairman and two directors from the loss- making company follows that of PaperlinX chief executive Toby Marchant in July, the report says. PaperlinX said Chairman Harry Boon and non-executive directors Lyndsey Cattermole and Anthony Clark had resigned from the board, effective from September 28, according to smh.com.au. "The company expects to make further announcements about additional appointments to the board prior to the effective date of the above resignations," PaperlinX said in a statement. smh.com.au discloses that PaperlinX booked an annual loss of AUD266.7 million for the year to June 30 after writing off the value of its European operations. PaperlinX reported an annual loss of AUD108 million in the 2011 financial year, a loss of AUD225 million in 2010, and a loss of AUD798 million in 2009. Based in Australia, PaperlinX Limited (ASX:PPX) -- http://www.paperlinx.com.au/-- is a fine paper merchant and manufacturer of communication and packaging paper. PaperlinX employs over 9,600 people in 28 countries. WESTGEM: Owner Suffers Set Back in Receivership Case ---------------------------------------------------- Chris Zappone at smh.com.au reports that property developer Luke Saraceni has suffered a legal setback today, with the Supreme Court of Western Australia ruling that receivers had been lawfully appointed to his Westgem Investments holding company in January 2011. Receivers KordaMentha welcomed the ruling in the long-running case involving the $500 million Perth commercial property, Raine Square, according to Smh.com.au. "I hope today's decision will bring to an end Mr. Saraceni's strategy of seeking to undermine the receivers," the report quoted Mark Mentha, of corporate turnaround and restructure advisory KordaMentha, as saying. Mr. Saraceni, the sole director of Westgem, is seeking compensation for what he claimed was an unjustified receivership call on his group, the report notes. Smh.co.au recalls that Westgem, a special purpose vehicle which owns Raine Square, was placed into receivership by financiers Bankwest and Bank of Scotland, after the company failed to make a $50 million repayment in December 2010. The report discloses that the West Australian reported that Mr. Saraceni planned to continue to pursue legal action against the receivers. Mr. Saraceni holds 51% of Westgem's shares along with commercial property investor Hossean Pourzand, the report relays. Bankwest, whose headquarters are located in Raine Square, welcomed the outcome, saying it was "keen to put the distraction of these particular legal proceedings behind them so they can focus on the completion and sale of the projects," the report adds. * AUSTRALIA: Moody's Says Banks Can Withstand Unexpected Downturn ----------------------------------------------------------------- Moody's Investors Service says Australia's major banks are well positioned to withstand significant loan losses from any unanticipated economic downturn, save one which caused losses unparalleled in the Australian context. "Strong profitability and capital levels, together with solid asset quality, have positioned the major banks well for an unexpected economic downturn, including one where losses would be equivalent in size to those experienced during Australia's last recession from 1991 to 1993," says Ilya Serov, a Moody's Vice President and Senior Credit Officer. Serov is the author of a new report titled, "Assessing the Vulnerability of Australian Banks to a Downturn in the Housing Sector". "In our view, the banks would only be materially impacted - and therefore would need to raise significant amounts of capital - in a highly adverse scenario, wherein losses incurred are of a size unprecedented in the Australian context," says Serov. "Such a scenario would be characterised by housing losses many times greater than those ever historically experienced. In addition, such a scenario would require loan losses from corporate and other lending books similar in magnitude to those experienced by US banks from 2008 to 2011," continues Serov. "Such a scenario would represent in all likelihood an extremely severe economic recession." This scenario contrasts with Moody's base case macroeconomic forecast, which assumes GDP growth in the 2.5-3.5% range in 2012 and 3-4% in 2013, with unemployment in the 5-6% range, thereby highlighting the low level of risk -- in Moody's view -- that the highly stressed scenario would eventuate. "However, the banks' continued exposure to offshore wholesale funding -- though much improved -- remains a key risk with the potential for even a mild downturn to lead to funding stress. In such a situation, a loss of investor confidence is the key vulnerability for the banks' creditworthiness," says Serov. Moody's also notes in the report that the impact on the regional banks would be more pronounced under all stress scenarios. Compared to the major banks, the portfolios of regional banks have a higher percentage of low documentation loans and are less geographically diversified, leading to higher credit losses in the event of an economic downturn. The major rated Australian banks are: Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank, and Westpac Banking Corporation. The rated regional banks are Bank of Queensland, Bendigo and Adelaide Bank, and Suncorp-Metway Limited. =================== B A N G L A D E S H =================== * BANGLADESH: Moody's Says 'Ba3' Rating Outlook Stable ------------------------------------------------------ Moody's Investors Service says that the outlook for the Government of Bangladesh's Ba3 foreign and local currency bond ratings is stable. Moody's sovereign ratings for Bangladesh's are based on low levels of economic and institutional strength, as well as low-to- moderate government financial strength, balanced against a low susceptibility to event risk. According to a new report titled, "Credit Analysis: Bangladesh, Government of", while Bangladesh has achieved a track record for macroeconomic stability over the past decade, GDP per capita remains the lowest amongst all rated countries. Moreover, a reliance on private consumption--supported by worker remittances- -and a poorly diversified export sector leave the country vulnerable to a further slowdown in global growth. Since 2011, overheating pressures manifested themselves in rising prices and a deterioration in the balance of payments. While these have been contained recently, fundamental factors behind the shock--such as infrastructure constraints in the power sector--still need to be resolved in order to assure a sustainable growth trajectory of around 7% per annum. Bangladesh's rating is constrained by institutional weaknesses. Notably, poor governance have constrained capacity improvements and could be a risk to funding. However, conditionalities built in to the IMF program that commenced in April 2012 bolsters the outlook for reform. The government's low to moderate financial strength reflects a weak revenue base and structural pressures from subsidies, but are offset by trend improvement in the debt trajectory, relatively low debt service requirements, and ongoing efforts to reform revenues. While deficits have remained manageable at 4-5% of GDP, funding-related stresses in the past year contributed to a greater dependence on domestic bank financing, which in turn has fanned inflationary pressures and a mild crowding out of private sector credit. However, continued access to low-cost, long-term external financing limits exchange rate and sovereign debt rollover risks. While the contentious political landscape has dented investor confidence, event risks are remote. This assessment reflects a largely stable banking system, as well as the low likelihood that future political developments would result in a sudden shift in the policy framework. Moody's report is an annual update to the markets and does not constitute a rating action. ========= C H I N A ========= CHINA TEL GROUP: Issues Shares to Ironridge, Isaac and AO --------------------------------------------------------- Since its most recent report filed on any of Forms 8-K, 10-K or 10-Q, VelaTel Global Communications, Inc., formerly known as formerly known as China Tel Group Inc., has made sales of unregistered securities, namely shares of the Company's Series A common stock. The Company filed a Form 8-K because the aggregate number of Shares sold exceeds 5% of the total number of Shares issued and outstanding as of the Company's latest filed Report, on Form 10-Q filed on Aug. 20, 2012. On Sept. 13, 2012, the Company issued 2,250,000 Shares to Ironridge Global IV, Ltd. The Second Issuance was pursuant to an Order for Approval of Stipulation for Settlement of Claims between the Company and Ironridge, in settlement of $1,367,693 of accounts payable of the Company which Ironridge had purchased from certain creditors of the Company, in an amount equal to the Assigned Accounts, plus fees and costs. Ironridge demonstrated to the Company's satisfaction that it was entitled to an Additional Issuance, and that following the Second Issuance Ironridge will own less than 9.99% of the total shares then outstanding. On Sept. 13, 2012, the Company issued 1,153,961 Shares and 1,153,961 warrants to Isaac Organization, Inc., in partial payment of a promissory note in the amount of $500,000 due June 30, 2012. Each warrant has an exercise price of $0.0276 and an exercise term of three years. This sale of Shares resulted in a principal reduction of $5,000 in notes payable of the Company, and payment of accrued interest of $26,849. On Sept. 13, 2012, the Company issued 928,309 Shares and 928,309 warrants to America Orient, LLC, in partial payment of a promissory note in the amount of $500,000 due May 31, 2012, in favor of Isaac and assigned to America Orient. Each warrant has an exercise price of $ 0.0299 and an exercise term of three years. This sale of Shares resulted in a principal reduction of $25,000 in notes payable of the Company, and payment of accrued interest of $2,756. In addition, the Company issued 8,354,081 registered Shares pursuant to a Form S-8 Registration Statement filed on Aug. 30, 2012. As of Sept. 13, 2012, the Company has 24,954,563 shares of its Series A common stock outstanding, with a par value of $0.001, and 199,999,999 shares of its Series B common stock outstanding, with a par value of $0.001. About China Tel Based in San Diego, California, and Shenzhen, China, China Tel Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/-- provides high speed wireless broadband and telecommunications infrastructure engineering and construction services. Through its controlled subsidiaries, the Company provides fixed telephony, conventional long distance, high-speed wireless broadband and telecommunications infrastructure engineering and construction services. ChinaTel is presently building, operating and deploying networks in Asia and South America: a 3.5GHz wireless broadband system in 29 cities across the People's Republic of China with and for CECT-Chinacomm Communications Co., Ltd., a PRC company that holds a license to build the high speed wireless broadband system; and a 2.5GHz wireless broadband system in cities across Peru with and for Perusat, S.A., a Peruvian company that holds a license to build high speed wireless broadband systems. After auditing the 2011 results, Kabani & Company, Inc., in Los Angeles, California, expressed substantial doubt as to the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred a net loss for the year ended Dec. 31, 2011, cumulative losses of $254 million since inception, a negative working capital of $16.4 million and a stockholders' deficiency of $9.93 million. The Company reported a net loss of $21.79 million in 2011, compared with a net loss of $66.62 million in 2010. The Company's balance sheet at June 30, 2012, showed $15.91 million in total assets, $20.01 million in total liabilities and a $4.09 million total stockholders' deficiency. ================ H O N G K O N G ================ 832 LIMITED: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on Sept. 5, 2012, to wind up the operations of 832 Limited. The official receiver is Teresa S W Wong. 3D-GOLD JEWELLERY: Court Enters Wind-Up Order --------------------------------------------- The High Court of Hong Kong entered an order on Sept. 3, 2012, to wind up the operations of 3D-Gold Jewellery Holdings Limited. The official receiver is Teresa S W Wong. ACE STYLE: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on Aug. 29, 2012, to wind up the operations of Ace Style Intimate Apparel Limited. The company's liquidator is Lau Siu Hung. CSA ABSOLUTE: Blaauw and Lam Step Down as Liquidators ----------------------------------------------------- Jan G W Blaauw and Lam Hok Chung Rainier stepped down as liquidators of CSA Absolute Return Fund Limited on Aug. 8, 2012. GOLDEN GENERAL: Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on July 6, 2012, to wind up the operations of Golden General Corporation Limited. The company's liquidator is Lau Siu Hung. HIGH LINK: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on June 4, 2012, to wind up the operations of High Link Technology Limited. The company's liquidator is Lau Siu Hung. JIAN MAO: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on Aug. 29, 2012, to wind up the operations of Jian Mao Shipping & Trading Co. Limited. The company's liquidator is Lau Siu Hung. LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases ----------------------------------------------------------------- The Hong Kong Monetary Authority (HKMA) announced Sept. 7 that investigation of over 99% of a total of 21,867 Lehman-Brothers- related complaint cases received has been completed. These include: * 15,769 cases which have been resolved by a settlement agreement reached under section 201 of the Securities and Futures Ordinance; * 3,474 cases which have been resolved through the enhanced complaint handling procedures required by the settlement agreement; * 2,533 cases which were closed because insufficient prima facie evidence of misconduct was found after assessment or no sufficient grounds and evidence were found after investigation; * 25 cases which are under disciplinary consideration after detailed investigation by the HKMA, of which proposed disciplinary notices are being prepared; and * 29 cases in respect of which investigation work has been completed and are going through the decision process to decide whether there are sufficient grounds for disciplinary actions or whether the cases should be closed because of insufficient evidence or lack of disciplinary grounds. Investigation work is underway for the remaining 35 cases. A table summarizing the progress of the disciplinary and complaint-resolution work in respect of Lehman-Brothers-related complaints is available at http://is.gd/wHK40v About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. LUCKY FIRST: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on Sept. 5, 2012, to wind up the operations of Lucky First Industries Limited. The official receiver is Teresa S W Wong. MUSE INTERIOR: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on Sept. 3, 2012, to wind up the operations of Muse Interior Design Gallery Limited. The company's liquidator is Lau Siu Hung. PS EXIM: Court to Hear Wind-Up Petition on Oct. 3 ------------------------------------------------- A petition to wind up the operations of PS Exim (HK) Limited will be heard before the High Court of Hong Kong on Oct. 3, 2012, at 9:30 a.m. Pointer Investment (Hong Kong) Limited filed the petition against the company on July 30, 2012. The Petitioner's solicitors are: Reed Smith Richards Butler 20th Floor, Alexandra House 18 Chater Road Central, Hong Kong SINO DYNASTY: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on Aug. 1, 2012, to wind up the operations of Sino Dynasty Development Limited. The company's liquidator is Lau Siu Hung. SUPER ENERGY: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on July 26, 2012, to wind up the operations of Super Energy International Limited. The company's liquidator is Lau Siu Hung. VILLAWOOD DEVELOPMENTS: Lai and Yeung Appointed as Liquidators -------------------------------------------------------------- Lai Kar Yan Derek and Yeung Lui Ming Edmund on Aug. 6, 2012, were appointed as liquidators of Villawood Developments Limited. The liquidators may be reached at: Lai Kar Yan Derek Yeung Lui Ming Edmund 35/F, One Pacific Place 88 Queensway, Hong Kong YILI PLASTIC: Court to Hear Wind-Up Petition on Oct. 17 ------------------------------------------------------- A petition to wind up the operations of Yili Plastic (Hong Kong) Company Limited will be heard before the High Court of Hong Kong on Oct. 17, 2012, at 9:30 a.m. Tse Wing Kwong Wallace filed the petition against the company on Aug. 15, 2012. YING YUE: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on July 26, 2012, to wind up the operations of Ying Yue Construction Engineering Co. Limited. The company's liquidator is Lau Siu Hung. ========= I N D I A ========= ANAND DIAGNOSTIC: CARE Rates INR7.58cr LT Loan at 'CARE BB+' ------------------------------------------------------------ CARE assigns 'CARE BB+' to the bank facilities of Anand Diagnostic Laboratory. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 7.58 CARE BB+ Assigned The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or infusion of fund in the form of unsecured loans brought in by the partners in addition to the financial performance and other business-related factors. Rating Rationale The rating is primarily constrained on account of the small scale of operations of Anand Diagnostic Laboratory (ADL) along with its constitution as a partnership firm, geographical concentration of its operations and intense competition in the medical diagnostics service industry with high level of fragmentation and presence of unorganized players. The rating, however, draws strength from established track record and experience of the partners, growing turnover with healthy profit margins, favorable capital structure, satisfactory debt coverage indicators and favorable demand prospects. Increase in the scale of operations amidst intense competition in the industry and sustaining healthy profit margins and capital structure is the key rating sensitivity. Anand Diagnostic Laboratory was incorporated in 1974 as a proprietorship concern by Dr. Ramaprasad and was converted to a partnership firm in 1993. It is engaged in providing medical diagnostic services viz. blood test, urine test, lipid profile test, Ultrasound, X-ray, TMT, etc. Besides, it also provides certain other services viz. home collection services, preventive care services and medical research services. ADL operates in South India only and has branches located at several places in Bangalore and one in Mangalore. The partners, Dr. Ramaprasad, Dr Jayaram and Dr Sujayprasad are qualified medical practitioners associated with the industry for the last 30-40 years. During FY11 (refers to the period April 1 to March 31), ADL reported a total operating income of INR17.09 crore (FY10 INR 13.72 crore) and a PAT of INR2.23 crore (FY10, INR1.88 crore). Based on the provisional results for FY12, ADL reported a total operating income of INR20.96 crore and a PAT of INR2.33 crore. BALAR SYNTHETICS: CARE Assigns 'CARE BB' Rating to INR20.9cr Loan ----------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Balar Synthetics Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-Term Bank Facilities 20.90 CARE BB Assigned Long-Term / Short-Term 0.10 CARE BB/CARE A4 Bank Facilities Assigned Rating Rationale The ratings are primarily constrained by the presence of Balar Synthetics Private Limited in the highly fragmented & competitive synthetic fabric manufacturing industry with limited value addition and working capital intensive nature of operations. The ratings are further constrained by BSPL's financial risk profile marked by low profitability and leveraged capital structure. The ratings, however, draw strength from the wide experience of the promoters in the synthetic fabric manufacturing industry, locational advantage by the way of proximity to raw material as well as customers and Government support through Technology Upgradation Fund Scheme. BSPL's ability to increase its scale of operations and profitability with improvement in capital structure and efficient management of working capital are the key rating sensitivities. BSPL is promoted by Mr. Suresh Kumar Jain & Mr. Rajesh Jain in 1996 at the Textile City of India, Bhilwara. The company is engaged in weaving of synthetic fabrics from polyester viscous (PV) yarn which are primarily used for the manufacturing of suitings. Initially the company had started its weaving operations with 36 looms which over the period of time has grown to 140 sulzer looms (Automatic Weaving Machines). BSPL has its sole manufacturing facilities located at Bhilwara with an installed capacity of 1.40 crore meter per annum (MPA) to produce grey and finished synthetic fabrics as on March 31, 2012. The company sells most of the manufactured grey fabric in the local market of Bhilwara through nine agents. Further, BSPL markets finished fabric through network of 26 agents in the local market as well as in the Southern part of India. During FY12 (as per audited results; refers to the period April 1 to March 31), BSPL reported a total operating income of INR89.54 crore (FY11: INR77.91 crore) and Profit After Tax (PAT) of INR0.72 crore (FY11: INR0.60crore). As per provisional results for Q1FY13, BSPL achieved total operating income of INR25crore. BEJ CERAMIC: CARE Rates INR7.17cr LT Loan at 'CARE B+' ------------------------------------------------------ CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of BEJ ceramic. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 7.17 CARE B+ Assigned Short-term Bank Facilities 1.00 CARE A4 Assigned The ratings assigned by CARE are based on the capital deployed by the partners and the financial strength of the firm at present. The ratings may undergo change in case of the withdrawal of the capital or the unsecured loans brought in by the partners' in addition to the financial performance and other relevant factors. Rating Rationale The ratings assigned to the bank facilities of Bej Ceramic (BEJ) are primarily constrained on account of the delay in the completion of project, leveraged capital structure and its presence in highly fragmented ceramic tiles industry. The ratings are further constrained due to the susceptibility of operating margins to raw material price fluctuations and demand linkages with the real estate sector. These constraints far outweigh the benefits derived from the partners' experience in the ceramic tiles industry coupled with the presence in ceramic tile hub with easy access to raw materials. BEJ's ability to achieve envisaged level of sales and profit margins in the highly competitive ceramic tiles industry are the key rating sensitivities. Established in April 2011 as a partnership firm, BEJ, based in Morbi (Gujarat), is owned and managed by seven active partners. In February 2012, BEJ completed a green-field project to manufacture glazed ceramic floor tiles with an installed capacity of 30,000 metric tonnes per annum (MTPA). The total cost of the project was INR9.27 crore, which was financed with a debt equity ratio of 1.72 times. BEJ has set up a project based on the latest single firing new roller kiln technology in which both wall and floor tiles can be manufactured. BHAGYODAY AGRO: CARE Assigns 'CARE B' Rating to INR8.40cr Loan -------------------------------------------------------------- CARE assigns 'CARE B' rating to the bank facilities of Bhagyoday Agro Industries. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 8.40 CARE B Assigned The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm as on March 31, 2012. The ratings may undergo change in case of the withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The rating is constrained by the relatively small scale of operations of Bhagyoday Agro Industries in the competitive and fragmented cotton ginning industry, strained financial risk profile indicated by thin profit margins along with leveraged capital structure, fluctuations and seasonality associated with cotton availability and impact of government policies related to cotton. The rating, however, derives strength from the experienced management and the strategic location of the unit in the cotton growing areas of Maharashtra. The ability of the firm to increase the scale of operations, improve its profitability margins and manage working capital cycle is the key rating sensitivity. BAI was setup in January 2009, by Mr. Shantilal Pahade and his wife Mrs. Anita Pahade as a partnership firm in the profit sharing ratio of 70:30. BAI is engaged in the business of cotton ginning and pressing. The processing unit of BAI is located in Vaijapur, Aurangabad, with an installed capacity of 126 metric tonnes per annum (MTPA) for cotton seeds and 7,650 MTPA for cotton bales as on March 31, 2012. The firm utilizes approximately 75% of its annual installed capacity and operates for 180 days (October to May) during the year which is the raw material season. During FY11 (refers to the period April 1 to March 31) BAI earned a PAT of INR0.20 crore on a total income of INR35.95 crore as against a PAT of INR0.10 crore on a total income of INR8.61 crore in FY10. As per the provisional results, BAI registered a PAT of INR0.43 crore on a total income of INR 34.34 crore. BHARAT PET: CARE Assigns 'CARE B+' Rating on INR8.13cr LT Loan -------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Bharat Pet Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 8.13 CARE B+ Assigned Short-term Bank Facilities 0.50 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Bharat PET Ltd. are primarily constrained by its small scale of operations coupled with declining total operating income, working capital intensive nature of operations, highly fragmented PET (Polyethylene Terephthalate) containers industry, volatility in raw material prices and fortunes linked to the pesticides industry. The ratings however, do get support from the long- standing industry experience of the promoters, reputed and large client base, direct selling to established clients and moderate overall gearing. Going forward, the company's ability to increase its scale of operations along with the improvement in the profitability margins and effective working capital management are the key sensitivities. BPET was incorporated as a public limited company in 1998 by Mr. Subhash Chandra Gupta, Mrs. Meena Gupta and Mr. Deepak Gupta, and all of them have been with the company since its inception. The company is engaged in the manufacturing and supplying of plastic bottles specifically used for storing agro-based chemicals like pesticides, insecticides, etc. It manufactures PET bottles in different sizes, ranging from 100 ml size to 10 litres. BPET has its manufacturing facility setup in Peera Garhi (New Delhi), with an installed capacity to produce 5 crore pieces per annum. The promoters have also promoted Bharat Product Limited engaged in the manufacturing of tin containers for storing agro-based chemicals. For FY11 (refers to the period April 1 to March 31), BPET achieved total operating income of INR24.73 crore with a PAT of INR0.10 crore. As per the provisional results of FY12, BPL has achieved a total operating income of INR20.72 crore. BHARAT PRODUCTS: CARE Rates INR12.5cr LT Loan at 'CARE B+' ---------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Bharat Products Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 12.50 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Bharat Products Ltd. is constrained by its small scale of operations with modest profitability margins, working capital intensive nature of the operations resulting in a long operating cycle, intense competition in the packaging industry due to low entry barriers and fortunes linked to the pesticides industries. The rating, however, is supported by the long-standing industry experience of the promoters, reputed and large client base and moderate leverage. Going forward, the company's ability to increase its scale of operations along with the improvement in profitability margins and effective working capital management are the key sensitivities. BPL (formerly known as Bharat Product Private Limited), was incorporated by Mr. S. N. Gupta and Mr. Subash Chandra Gupta in March 1993 as a private limited company. It was subsequently converted into a public limited company in October 1993. BPL is a manufacturer and supplier of tin containers, used specifically for storing agro-based chemicals like pesticides, insecticides, crop saving material, etc. The company manufactures tin containers in different sizes, ranging from 100 ml to 10 litres. The company sells directly to its corporate customers and does not sell through any intermediaries. BPL has its manufacturing facilities setup in Nangloi (New Delhi) with an installed capacity to produce 3 crore pieces of tin containers per annum. The promoters have also promoted Bharat Pet Limited, which is engaged in the manufacturing of plastic containers for storing agro-based chemicals. For FY11 (refers to the period April 1 to March 31), BPL achieved a total operating income of INR28.19 crore with a PAT of INR0.52 crore. CHANDRESH CABLES: CARE Rates INR18cr LT Loan at 'CARE BB' --------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Chandresh Cables Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 18.00 CARE BB Assigned Long-term/Short-term Bank 2.00 CARE BB/CARE A4 Facilities Assigned Short-term Bank Facilities 2.00 CARE A4 Assigned Rating Rationale The ratings are primarily constrained on account of the financial risk profile of Chandresh Cables Ltd. marked by thin profit margins, leveraged capital structure and weak debt protection indicators. The ratings are further constrained by susceptibility of profit margins to raw material price fluctuations, working capital intensive nature of business operations and stiff competition from organized players. These constraints outweigh the benefits derived from the promoters' experience in the cable industry, long track record of operations and reputed and diversified customer base. CCL's ability to increase its scale of operations with diversification of product portfolio and improvement in the profitability and capital structure are the key rating sensitivities. CCL, promoted by Mr. Khimraj Balar, was originally incorporated in December 1981 as Baakra Cables Ltd., and subsequently, the name of the company was changed to CCL in October 1989. CCL is engaged in the manufacturing of industrial and housing power cables and wires. CCL manufactures Low Tension (LT) polyvinyl chloride (PVC) aluminium cables, copper cables, flexible cables, flat cables, cross linked polyethylene (XLPE) cables and housing wires under its registered brand name of 'AVOCAB'. Cables and wires manufactured by CCL are mainly used in heavy industries such as power, oil and gas, mining and engineering and indoor applications for wiring in houses, which are in compliance with standards as specified by Bureau of Indian Standards (BIS) and ISO 9001:2008. CCL operates from its sole manufacturing facility located in Kalol (Gujarat), which has an installed capacity to manufacture 15,000 kms of power cables and wires and caters to Gujarat, Maharashtra, Karnataka and Rajasthan. CCL is a part of the 'Chandresh Group', which includes group companies such as Anik Synthetics Pvt. Ltd. (manufacturer of synthetic cloths), Chandresh Finance Ltd. (engaged in providing long term finance to industries and marketing organizations), M/s. Sunder Overseas (export and import of various chemicals) and Chandresh Marketing Pvt. Ltd. (engaged in the marketing of communication products such as mobile instruments). As against a net profit of INR0.59 crore on a total operating income of INR62.88 crore in FY10 (refers to the period April 1 to March 31), CCL reported a net profit of INR0.45 crore on a total operating income of INR72.23 crore during FY11. CRP TECHNOLOGIES: CARE Rates INR19.05cr Loan at 'CARE BB+' ---------------------------------------------------------- CARE assigns 'CARE BB+' rating to the bank facilities of CRP Technologies (India) Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 19.05 'CARE BB+' Assigned Rating Rationale The rating assigned to the bank facilities of CRP Technologies (India) Limited is primarily constrained by its modest, albeit growing, scale of operations, working capital intensive nature of business, leveraged capital structure and its presence in a fragmented and competitive industry. The aforesaid constraints are partially offset by strength derived from experienced and qualified management, growth in operations in past, moderately healthy profitability margin, wide services offerings & diversified user base and established relationship with reputed corporate clients. Improvement in the capital structure, achieving envisaged sales & maintaining the profitability margins along with its ability to successfully establish new services are the key rating sensitivities. Incorporated in 2000 as a private limited company, CRP Technologies (India) Limited in the initial years of its operation (2000-2005) was involved only in the business of providing credit verification service to the insurance companies. Over the years, CRP diversified into various other services viz. HR services (background checks, exit interviews and others), insurance services (claim investigation & settlement, fraud verification) and database services (employee database & captive education database). Later towards the end of FY11, the company started a new service of providing Contactibility to the insurance companies in its insurance services vertical. In the year 2012, the company started another service called 'Managed Branches'. In this service CRP facilitates the clients to open up branches by providing infrastructure, manpower and support activities. The company's total operating income grew by 123% in FY12 vis-�- vis FY11 and the PAT decreased to 7.37% during FY12 from 10.21% during FY11. M.P.K. ISPAT: CARE Rates INR15cr LT Loan at 'CARE B+' ----------------------------------------------------- CARE assigns 'CARE B+' ratings to the bank facilities of M.P.K. ISPAT (I) PVT LTD. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 15 CARE B+ Assigned Rating Rationale The rating is primarily constrained on account of the implementation and stabilization risk associated with the on- going debt-funded Greenfield project of MPK Ispat (I) Pvt. Ltd. (MPKL). The rating is further constrained by the susceptibility of operating margins to volatile raw material prices and foreign currency fluctuations and high degree of competition in the fragmented and cyclical domestic steel industry. The aforesaid constraints are partially offset by strengths derived from the promoters' experience in steel manufacturing business, backward integration for group and favorable industry prospects. The company's ability to successfully implement and stabilize its ongoing project without any time and cost overrun is the key rating sensitivity. MPK Ispat (India) Private Limited, a part of the MPK group, was incorporated in 2010. As a backward integration initiative, the MPK group (engaged in the manufacturing of structural steel & iron products, since 1996 through three group companies), through MPKL, is setting up a mild steel (MS) billet manufacturing plant with a capacity of 29,700 metric tonnes per annum (MTPA) at RIICO, Bagru (Rajasthan). The total cost of the project is envisaged at INR23.08 crore, being funded by sanctioned term loan of INR15 crore, equity of INR7.70 crore and remaining through unsecured loans from the promoters. As on August 14, 2012, the company has already spent INR18.48 crore funded towards the project, funded through term loan of INR10.56 crore, creditors for capital goods of INR1.50 crore, vehicle loan of INR0.06 crore and balance through the promoter's contribution. PANCHDEEP COTTON: CARE Reaffirms 'CARE B' Rating on INR13cr Loan ---------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Panchdeep Cotton Industries. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 13 CARE B Reaffirmed The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of the capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The rating assigned to the bank facilities of Panchdeep Cotton Industries (PCI) continue to remain constrained by its below average financial risk profile marked by low and fluctuating profitability margins, leveraged capital structure and weak debt protection indicators. The rating is further constrained on account of its constitution as a partnership firm, its presence in highly competitive and fragmented cotton ginning industry with limited value addition, volatility associated with raw material (Cotton) prices and exposure to the change in government policy for cotton. The above-mentioned constraints far offset the benefits derived from the wide experience of partners in the cotton ginning business and proximity to the cotton producing region of Gujarat. PCI's ability to improve its profitability margins with rationalization of debt levels will remain the key rating sensitivities. PCI is a partnership firm constituted in 1997. The firm is engaged in cotton ginning & pressing and cotton seed crushing. The firm has an installed capacity of 23,000 Metric Tonnes per Annum (MTPA) of cotton bales and 2,500 MTPA of cotton wash oil as on March 31, 2012. As against a PAT of INR1.32 crore on a total operating income of INR88.73 crore in FY11 (refers to the period April 1 to March 31), PCI earned a PAT of INR0.31 crore on a total operating income of INR122.75 crore in FY12. PANCHDEEP COTTON INDUSTRIES: CARE Reaffirms 'B' LT Rating --------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Panchdeep Cotton Industries Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 11.31 CARE B Reaffirmed Rating Rationale The rating assigned to the bank facilities of Panchdeep Cotton Industries Private Limited continues to remain constrained by its weak financial risk profile marked by the losses during FY12, leveraged capital structure and weak debt coverage indicators. The rating is further constrained on account of its small scale of operation, its presence in a highly competitive and fragmented cotton ginning industry with limited value addition, volatility associated with raw material (Cotton) prices and exposure to change in the government policy for cotton. The above-mentioned constraints far offset the benefits derived from the wide experience of the promoters in the cotton ginning business and proximity to the cotton producing region of Gujarat. PCIPL's ability to improve its profitability margins in light of volatile cotton prices along with the rationalization of debt levels will remain the key rating sensitivities. Incorporated in 2008, PCIPL is a private limited company promoted by the family members of Mr. Zina Patel. PCIPL is engaged in cotton ginning and pressing activity with an installed capacity of manufacturing 20,160 Metric Tonnes per Annum (MTPA) of cotton bales and 38,475 MTPA of cotton seeds as on March 31, 2012 at its sole manufacturing unit located in Gadhada, (District Bhavnagar, Gujarat). As against a PAT of INR0.74 crore on a total operating income of INR42.76 crore in FY11 (refers to the period April 1 to March 31), MVPL earned a PAT of INR0.67 crore on a total operating income of INR45.23 crore in FY12. SYSCHEM INDIA: CARE Assigns 'CARE BB-' Rating to INR15.75cr Loan ---------------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4' rating to the bank facilities of Syschem India Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 15.75 CARE BB- Assigned Short-term Bank Facilities 3.00 CARE A4 Assigned Rating Rationale The rating assigned to the bank facilities of Syschem India Limited are primarily constrained by its small scale of operations, working capital intensive nature of its business, high fragmentation and high level of competition in each product line. The ratings, however, does draw comfort from the experienced promoters, moderate capital structure, long term contracts and revenue visibility and multiple product lines. Going forward, the ability of the company to increase its scale of operation while improving its profitability margin, stabilization of new product lines and effective working capital management would be the key rating sensitivities. Syschem India Limited was originally incorporated as a public limited company under the name of Anil Pesticides Limited in December, 1993. The name of the company was subsequently changed to Syschem India Limited in December, 2001. There was delay in the repayment of term loans and working capital loans by previous management of the company before FY10. Previous management repaid all the loans under One Time Settlement in FY10 and FY11. Subsequently, SIL was taken over by Allychem Laboratories Private Limited, Allychem Securities Private Limited and their promoters through an open offer. The takeover was initiated on April 22, 2011, and was successfully completed on August 31, 2011. Currently the company is managed by Mr. Kushal Pal Singh, Mr. Ranjan Jain, Mr. Jahmohan Arora and Mr. Rajesh Gupta, and is engaged in the business of manufacturing of Active Pharmaceutical Ingredient Intermediates, thinners, wood and paint finishes and distillation of solvents. For FY12 (A) (refers to the period April 1 to March 31), SIL achieved total operating income of INR10.63 crore with PBILDT and PAT of INR1.54 crore and INR0.34 crore, respectively. As per provisional Q1FY13 results, SIL achieved total operating income of INR2.49 crore with PBILDT and PAT of INR0.43 crore and INR0.07 crore, respectively. ========= J A P A N ========= ELPIDA MEMORY: US Court Bars Firm From Selling U.S. Assets ---------------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that a Delaware bankruptcy judge on Tuesday agreed to exert more control over Elpida Memory Inc.'s U.S. assets through the Japanese chipmaker's Chapter 15 case, a victory for bondholders who claim the company is selling too cheap in its $2.5 billion deal with Micron Inc. At the request of U.S. bondholders owed nearly $300 million, Elpida is now barred from selling or transferring any of the company's U.S. assets without first giving the bondholders 21 days' notice or obtaining approval from the bankruptcy court, according to Bankruptcy Law360. Meanwhile, Reuters reports that a Japanese court has delayed its ruling on two competing plans to restructure Elpida Memory, a source with direct knowledge of the matter said. As reported in the Troubled Company Reporter-Asia Pacific on July 3, 2012, Micron Technology, Inc., and the trustees for Elpida Memory have signed a definitive sponsor agreement for Micron to acquire and support Elpida. The agreement has been entered into in connection with Elpida's corporate reorganization proceedings conducted under the jurisdiction of the Tokyo District Court. Under the agreement, JPY200 billion -- approximately US$2.5 billion assuming JPY80/US$ -- total consideration, less certain reorganization proceeding expenses, will be used to satisfy the reorganization claims of Elpida's secured and unsecured creditors. Micron will acquire 100% of the equity of Elpida for JPY60 billion -- approximately US$750 million -- to be paid in cash at closing. In addition, JPY140 billion -- approximately US$1.75 billion -- in future annual installment payments through 2019 will be paid from cash flow generated from Micron's payment for foundry services provided by Elpida, as a Micron subsidiary. Reuters relates that a group of Elpida bondholders last month submitted a restructuring plan to the Tokyo District Court after disagreeing with a proposal drawn up by Elpida's court-appointed administrator which endorses the deal with Micron. A committee set up by the court to examine the two plans is expected to make a recommendation by Sept. 28, Reuters' source said, declining to be identified because the person is not authorised to speak to the media. The court will make a final decision based on the recommendation. Reuters says the court may endorse one of the plans or both. All of Elpida's creditors would get to vote in October, adds Reuters. About Elpida Memory Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a Japan-based company principally engaged in the development, design, manufacture and sale of semiconductor products, with a focus on dynamic random access memory (DRAM) silicon chips. The main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile RAM and XDR DRAM, among others. The Company distributes its products to both domestic and overseas markets, including the United States, Europe, Singapore, Taiwan, Hong Kong and others. The company has eight subsidiaries and two associated companies. After semiconductor prices plunged, Japan's largest maker of DRAM chips filed for bankruptcy in February with liabilities of 448 billion yen ($5.6 billion) after losing money for five quarters. Elpida Memory and its subsidiary, Akita Elpida Memory, Inc., filed for corporate reorganization proceedings in Tokyo District Court on Feb. 27, 2012. The Tokyo District Court immediately rendered a temporary restraining order to restrain creditors from demanding repayment of debt or exercising their rights with respect to the company's assets absent prior court order. Atsushi Toki, Attorney-at-Law, has been appointed by the Tokyo Court as Supervisor and Examiner in the case. Elpida Memory Inc. sought the U.S. bankruptcy court's recognition of its reorganization proceedings currently pending in Tokyo District Court, Eight Civil Division. Yuko Sakamoto, as foreign representative, filed a Chapter 15 petition (Bankr. D. Del. Case No. 12-10947) for Elpida on March 19, 2012. The Court entered an order recognizing foreign representatives and foreign main proceeding on April 24, 2012. ========= K O R E A ========= LIG GROUP: Prosecutors Raid Offices Over Fraud Charges ------------------------------------------------------ Yonhap News Agency reports that prosecutors raided the offices of LIG Group and its affiliate firms early Wednesday as part of an investigation into allegations that the group chief and his family members illegally issued multi-billion won of commercial papers last year. According to the news agency, scores of prosecutors and investigators searched several offices of LIG Group, LIG Insurance Co. and LIG Engineering & Construction Co., as well as the residences of group chief Koo Cha-won and his family members engaged in running the affiliates located in Seoul earlier in the day to confiscate accounting books, computer hard disks and other relevant materials that would support the allegations. In August last year, Yonhap recalls, the Seoul Central District Prosecutors' Office launched an investigation into suspicions that LIG Group Chairman Koo and his first son Bon-sang, among other family members, were involved in issuing some KRW24.2 billion (US$21.6 million) of commercial papers between late February and early March in 2011 under the name of LIG E&C, which was on the verge of coming under court receivership. Yonhap notes that the construction firm filed for receivership on March 21, 2011, after suffering financial difficulties caused by the recession in local construction business and growing project financing loans. =============== M O N G O L I A =============== * MONGOLIA: Moody's Says Spending Demands Weigh on Outlook ---------------------------------------------------------- Moody's Investors Service says that Mongolia's near-term fiscal outlook is clouded by spending pressures which contribute to macroeconomic volatility, although its long-term economic prospects are bright. Mongolia's B1 rating and stable outlook reflect Moody's assessment of four factors: its "low" economic and institutional strengths, "moderate" government financial strength, and "high" susceptibility to risks from financial, economic, and political events. According to a new report titled, "Credit Analysis: Mongolia", the rating is constrained by the country's susceptibility to destabilizing boom-bust cycles stemming from: (1) an undiversified economy based on mining and agriculture and which is subject to the volatility in mineral prices and the occasional extremely severe winters; and (2) pro-cyclical fiscal policies. Mongolia's balance of payments remains vulnerable to swings in commodity prices. Although the adoption of a flexible exchange- rate policy will help contain macroeconomic imbalances from emerging again, a loose fiscal policy in 2011 has added inflationary pressures. While real GDP grew 17.3% in 2011, surpassing the highs of 10.6% in 2004 and 10.2% in 2007 during the country's previous boom periods, economic momentum peaked in the first quarter of 2012. Growth will likely moderate further this year because of the downturn in key commodity prices and a tighter monetary policy. On the other hand, the development of the massive copper deposits in Oyu Tolgoi and the equally large coking coal deposits in Tavan Tolgoi and elsewhere will be transformational for the Mongolian economy. The development of Oyu Tolgoi will depend on the establishment of an interim electrical power transmission line from China, until supply can be permanently put in place with a local power plant. For the Tavan Tolgoi coking coal deposit to be utilized to its complete potential, the construction of a rail line to the Chinese border and another to be linked into the rail line through Russia will be essential. These deficiencies in transportation and power-supply infrastructure constrain investment and, unless addressed, will dampen economic growth prospects. The resource-driven windfall also poses policy and political challenges. Adherence to key provisions of the newly adopted Fiscal Stability Law, key provisions of which will come into force in 2013, will test the government's ability to anchor finances against the tides of the global commodity cycle. Moody's report is an annual update to the markets and does not constitute a rating action. ==================== N E W Z E A L A N D ==================== CREDIT UNION: S&P Puts 'BB' Issuer Credit Rating on Watch Neg. -------------------------------------------------------------- Standard & Poor's Rating Services has placed its 'BB' long-term issuer credit rating on New Zealand-based Credit Union North on CreditWatch with negative implications. "At the same time, we have affirmed the short-term rating at 'B'," S&P said. "The CreditWatch placement on CUN's 'BB' rating reflects heightened concern around the stability and future direction of the credit union's business position," said credit analyst Andrew Mayes. "Specifically, CUN's lending volumes--most notably its personal lending--continue to contract, and we believe the credit union will struggle to stabilise its business position in a timely manner, particularly in-light of its relatively weaker operating efficiency. CUN's higher operating cost structure has, in part, contributed to the credit union's higher reliance on fee income compared to its peers, thus limiting its ability to better-compete. Progression of business initiatives has also being slowed by board and management changes over the past year." "In Standard & Poor's opinion, CUN's lending base remains under pressure amid broader operating environment challenges and a diluted member proposition. Although we note the decline in aggregate lending volumes has slowed in fiscal 2012, with the credit union experiencing a further increase in mortgage lending to record levels, its higher-returning personal lending portfolio--considered by the credit union as integral to its relevance with its member base--continues to contract at an unhealthy pace (down a further 22% in 2012, from 34% in 2011)," S&P said. "We also believe CUN's still-high operating cost structure -- at around 90% as measured by non-interest expense to operating revenues -- limits the credit union's ability to implement pricing strategies that could support new personal lending volumes, without placing renewed pressure on its underlying earnings. Having recently returned to profit on the back of lower write-offs and a reduction in new provisioning, we believe CUN's earnings experience will remain modest and volatile while it operates under its current cost structure," S&P said. "A CreditWatch negative listing by Standard & Poor's implies a one-in-two likelihood that the rating may be lowered within the next three months. The CreditWatch is expected to be resolved after further discussions with CUN's current management around plans and strategies to strengthen its longer-term business prospects. The long-term issuer credit rating of 'BB' may be lowered by one notch or more if we believe the credit union will be unable to implement an effective approach to improve both its competitiveness and business position," S&P said. ================= S I N G A P O R E ================= ITAI TECHNOLOGIES: Court Enters Wind-Up Order --------------------------------------------- The High Court of Singapore entered an order on Sept. 7, 2012, to wind up ITAI Technologies Pte Ltd's operations. Standard Chartered Bank filed the petition against the company. The company's liquidator is: The Official Receiver Insolvency & Public Trustee's Office The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 JFT INVESTMENT: Creditors' Proofs of Debt Due Oct. 15 ----------------------------------------------------- Creditors of JFT Investment Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 15, 2012, to be included in the company's dividend distribution. The company's liquidators are: Low Sok Lee Mona Teo Chai Choo c/o Low, Yap & Associates 4 Shenton Way #04-01 SGX Centre 2 Singapore 068807 JSE INVESTMENT: Creditors' Proofs of Debt Due Oct. 15 ----------------------------------------------------- Creditors of JSE Investment Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 15, 2012, to be included in the company's dividend distribution. The company's liquidators are: Low Sok Lee Mona Teo Chai Choo c/o Low, Yap & Associates 4 Shenton Way #04-01 SGX Centre 2 Singapore 068807 KUTAI ETAM: Court Enters Wind-Up Order -------------------------------------- The High Court of Singapore entered an order on Aug. 31, 2012, to wind up Kutai Etam Petroleum Pte Ltd's operations. The company's liquidator is: Shee Ping Fatt 65A Neil Road Singapore 088897 MYCUBE.COM PTE.: Creditors' Meetings Set for Oct. 2 --------------------------------------------------- MyCube.com Pte. Limited, which is in creditors' voluntary liquidation, will hold a meeting for its creditors on Oct. 2, 2012, at 3:00 p.m., at FTI Consulting (Singapore) Pte Ltd, 8 Shenton Way, #17-02A, AXA Tower, in Singapore 068811. Agenda of the meeting includes: a. to pass a resolution for the formation of the committee of inspection to act with the Liquidator; and b. to nominate a maximum of five members by person or by proxy to form a committee. The company's liquidator is: Yit Chee Wah c/o FTI Consulting (Singapore) Pte Ltd #17-02A, 8 Shenton Way Singapore 068811 MYCUBE.COM PTE: Creditors' Proofs of Debt Due Oct. 2 ---------------------------------------------------- Creditors of MyCube.com Pte Limited, which is in liquidation, are required to file their proofs of debt by Oct. 2, 2012, to be included in the company's dividend distribution. The company's liquidator is: Yit Chee Wah c/o FTI Consulting (Singapore) Pte Ltd #17-02A, 8 Shenton Way Singapore 068811 ********* 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 ***