/raid1/www/Hosts/bankrupt/TCRAP_Public/121108.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, November 8, 2012, Vol. 15, No. 223
Headlines
A U S T R A L I A
ABALONE INVESTMENT: Ferrier Hodgson Appointed as Receivers
DECO 7 - PAN EUROPE: S&P Lowers Rating on Class F Notes to 'D'
PERSEUS 22: S&P Retains 'D' Ratings on 2 Note Classes
RELIANCE RAIL: S&P Affirms 'CCC+' Rating on A$2.06-Bil. Sr. Debt
* Lloyd's Aussie Unit Sells Bad Loans to KKR, Allegro Funds
C H I N A
CHINA LUMENA: Moody's Revises 'B2' Rating Outlook to Positive
GEMDALE CORP: S&P Gives 'BB-' Rating on USD-Denominated Sr. Notes
STUDIO CITY: S&P Gives 'B+' Corp. Credit Rating; Outlook Stable
H O N G K O N G
BEAUTY LABORATORY: Court to Hear Wind-Up Petition on Dec. 12
DESIGN NETWORK: Court to Hear Wind-Up Petition on Nov. 14
DINKIND KNITTING: Court to Hear Wind-Up Petition on Jan. 9
ESSENTIAL INDUSTRIES: Creditors Get 100% Recovery on Claims
HIN FAI: Creditors to Get 67.729% Recovery on Claims
HOLD TIMING: Court to Hear Wind-Up Petition on Jan. 9
HUA WEI: Creditors to Get 100% Recovery on Claims
MARSHEL EXPORTS: Court Enters Wind-Up Order
PS EXIM: Court Enters Wind-Up Order
SUPER SPEED: Court Enters Wind-Up Order
TAIYON RESOURCES: Court to Hear Wind-Up Petition on Dec. 12
TAK MING: Creditors to Get 0.21% Recovery on Claims
WAI TAK: Court to Hear Wind-Up Petition on Jan. 9
WINFORD DEVELOPMENT: Court to Hear Wind-Up Petition on Dec. 19
WONG INVESTMENT: Court to Hear Wind-Up Petition on Nov. 21
I N D I A
ABHAY COTEX: CARE Assigns 'BB-' Rating to INR52.28cr LT Loan
ALA FOODSTUFF: CARE Assigns 'BB-' Rating to INR18.93cr LT Loan
ALANG SHIP: CARE Assigns 'CARE BB' Rating to INR3cr LT Loan
BALRAM COTTON: CARE Rates INR6.25cr LT Loan at 'CARE B'
GANGOTRI PAPER: CARE Assigns 'CARE BB' Rating to INR50cr Loan
HDPL INFRASTRUCTURE: CARE Places 'BB+' Rating on INR50cr Loan
KINGFISHER AIRLINES: Needs Fresh Capital to Keep Flying
MALAXMI HIGHWAY: CARE Rates INR248.41cr LT Loan at 'CARE C'
PANCHVATI SHIP: CARE Rates INR9cr LT Loan at 'CARE BB'
PARSVNATH ESTATE: CARE Rates INR90cr LT Loan at 'CARE BB+'
P. PATEL: CARE Assigns 'CARE BB' Rating to INR6cr LT Loan
SUZLON ENERGY: Lenders Seek to Acquire German Unit $967MM Loan
S.V. ALUEXT: CARE Assigns 'CARE B' Rating to INR9.24cr LT Loan
VEDBHUMI BUILDERS: CARE Rates INR26.95cr LT Loan at 'CARE BB-'
N E W Z E A L A N D
AORANGI SECURITIES: HMF Managers Reject Claims by Investor Group
AORANGI SECURITIES: Statutory Managers Clarify Actions
BRIDGECORP LTD: NZ$500,000 Reparation Waits to be Distributed
BRIDGECORP LTD: Insolvent 18 Mos. Before Collapse, Receiver Says
ROSS ASSET: High Court Appoints PwC as Receivers
S I N G A P O R E
MARINE ACCOMM: Court Enters Wind-Up Order
NIL-BURNS SYSTEM: Creditors Get 0.97039% Recovery on Claims
OREGON INVESTMENT: Court to Hear Wind-Up Application on Nov. 16
PIONEER ONE: Creditors' Proofs of Debt Due Dec. 2
POLY-ALLIED KNITWEAR: Creditors' Proofs of Debt Due Nov. 16
V I E T N A M
VINGROUP JSC: Fitch Assigns 'BB' Issuer Default Rating
VINGROUP JSC: S&P Gives 'B' Corp. Credit Rating; Outlook Stable
- - - - -
=================
A U S T R A L I A
=================
ABALONE INVESTMENT: Ferrier Hodgson Appointed as Receivers
----------------------------------------------------------
John Hart and Tim Mableson were appointed receivers and managers
of Abalone Investment Ltd (In Liquidation) and its subsidiaries,
Australian Bight Abalone Ltd, Australian Bight Abalone
Infrastructure Pty Ltd and Australian Bight Abalone Management
Pty, pursuant to the powers contained in a registered charge in
favor of the appointor.
The Group operates a unique Abalone mariculture operation located
in Anxious Bay, near Elliston, on the Eyre Peninsula in South
Australia. The sea farm operation uses specifically developed
technology for the maturation of the Greenlip Abalone and has the
capacity to produce up to 500 tonnes per annum of Greenlip
Abalone once fully utilised.
"The Receivers and Managers now control the Group's assets and
operations which will continue 'business as usual' during the
sale campaign whilst urgent expressions of interest for an
immediate sale of the Group's business and assets are sought,"
Ferrier Hodgson said.
"A further update regarding the status of the receivership will
be provided as soon as practicable."
The receivers may be reached at:
John Hart
Tim Mableson
Ferrier Hodgson
Level 6
81 Flinders Street
Adelaide SA 5000
E-mail: tim.mableson@fh.com.au
john.hart@fh.com.au
DECO 7 - PAN EUROPE: S&P Lowers Rating on Class F Notes to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
the class A2 to F notes issued by DECO 7 - Pan Europe 2 PLC. "At
the same time, we have affirmed our ratings on the class G and H
notes," S&P said.
DECO 7 - Pan Europe 2 closed in March 2006. It is backed by five
loans secured over properties in Germany and the Netherlands. The
loans were originated and are serviced by Deutsche Bank AG
(London branch).
"We last reported on this loan in December 2011, when we lowered
the ratings on most classes of notes following interest
shortfalls on the October 2011 interest payment date," S&P said.
INTEREST SHORTFALLS
"The 2011 valuation of the Karstadt Kompakt assets triggered an
appraisal reduction mechanism in the loan. This reduced the
amount that can be drawn under the liquidity facility at each
interest payment date to 56% of the required quarterly amount,"
S&P said.
"Three loans, Procom, Schmeing, and Lyran failed to repay at
maturity in October 2012; and have been transferred into special
servicing. These increased costs cannot be covered by the
liquidity facility and are therefore likely to disrupt cash flows
further. Furthermore, the class X notes are not obliged to cover
interest shortfalls in the transaction. Although the termination
of the interest rate swap at loan maturity will make excess cash
available to pay interest on the notes, in our opinion this will
not be enough to prevent continued shortfalls on the lower
classes of notes. We do, however, anticipate that further asset
sales from the Karstadt Kompakt loan will have the potential to
repay accrued and current interest payments on the loan," S&P
said.
"We anticipate that these factors may lead to recurring interest
shortfalls, especially when combined with further deferred
interest. We also expect possible loan prepayments to increase
the mismatch in the loan-to-note margins. We have lowered our
ratings on the class C to F notes to the speculative-grade
category to reflect this increased risk of cash flow disruptions
and potential interest shortfalls. In addition, we have lowered
our ratings on the class A2 and B notes because of their
heightened exposure
to potential interest shortfalls. Additionally, we have affirmed
our 'D (sf)' ratings on the class G and G notes due to continued
interest shortfalls," S&P said.
POTENTIAL EFFECTS OF PROPOSED CRITERIA CHANGES
"We have taken the rating actions based on our criteria for
rating European CMBS. However, these criteria are under review,"
S&P said.
"As highlighted in our Nov. 8, 2011, advance notice of proposed
criteria change, our review may result in changes to the
methodology and assumptions that we use when rating European
CMBS. Consequently, it may affect both new and outstanding
ratings in European CMBS transactions," S&P said.
"On Sept. 5, 2012, we published our updated criteria for CMBS
property evaluation. These criteria do not significantly change
our longstanding approach to deriving property net cash flows and
values in European CMBS transactions. We do not expect any rating
action in Europe as a result of adopting these criteria," S&P
said.
"However, because of its global scope, our criteria for global
CMBS property evaluation does not include certain market-specific
adjustments. We will therefore publish an application of these
criteria to European CMBS transactions along with our updated
criteria for rating European CMBS," S&P said.
"Until such time that we adopt updated criteria for rating
European CMBS, we will continue to rate and monitor these
transactions using our existing criteria," S&P said.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com
RATINGS LIST
DECO 7 - Pan Europe 2 PLC
EUR1.556 Billion Commercial Mortgage-Backed Variable- And
Floating-Rate Notes
Class Rating
To From
Ratings Lowered
A2 BBB+ (sf) A+ (sf)
B BBB- (sf) A+ (sf)
C BB (sf) A (sf)
D B (sf) BB+ (sf)
E CCC- (sf) BB (sf)
F D (sf) B- (sf)
Ratings Affirmed
G D (sf)
H D (sf)
PERSEUS 22: S&P Retains 'D' Ratings on 2 Note Classes
-----------------------------------------------------
Standard & Poor's Ratings Services withdrew its credit ratings on
Perseus (European Loan Conduit No.22) PLC's class A2 and A3
notes. "Our ratings on the class B, C, and D notes remain
unaffected by the rating actions," S&P said.
"The withdrawals follow the cash manager's confirmation that the
class A2 and A3 notes (scheduled to mature in July 2014) prepaid
in full on the October 2012 interest payment date," S&P said.
Perseus (European Loan Conduit No. 22) is a commercial mortgage-
backed securities (CMBS) transaction that closed in December
2005. The transaction is secured by a portfolio of U.K.
commercial real estate loans.
POTENTIAL EFFECTS OF PROPOSED CRITERIA CHANGES
"We have taken the rating actions based on our criteria for
rating European CMBS. However, these criteria are under review,"
S&P said.
"As highlighted in our Nov. 8, 2011 Advance Notice Of Proposed
Criteria Change, our review may result in changes to the
methodology and assumptions that we use when rating European
CMBS. Consequently, it may affect both new and outstanding
ratings in European CMBS transactions," S&P said.
"On Sept. 5, 2012, we published our updated criteria for CMBS
property evaluation. These criteria do not significantly change
our longstanding approach to deriving property net cash flows and
values in European CMBS transactions. We do not expect any rating
action in Europe as a result of adopting these criteria," S&P
said.
"However, because of its global scope, our criteria for global
CMBS property evaluation do not include certain market-specific
adjustments. We will therefore publish an application of these
criteria to European CMBS transactions along with our updated
criteria for rating European CMBS," S&P said.
"Until such time that we adopt updated criteria for rating
European CMBS, we will continue to rate and monitor these
transactions using our existing criteria," S&P said.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com
RATINGS LIST
Class Rating
To From
Perseus (European Loan Conduit No. 22) PLC
EUR514.538 Million Commercial Mortgage-Backed Floating-Rate Notes
Ratings Withdrawn
A2 NR A (sf)
A3 NR A (sf)
Ratings Unaffected
B BBB (sf)
C D (sf)
D D (sf)
NR - Not rated.
RELIANCE RAIL: S&P Affirms 'CCC+' Rating on A$2.06-Bil. Sr. Debt
----------------------------------------------------------------
Standard & Poor's Ratings Services revised the outlook of its
ratings on both the senior-secured and junior debt issued by
Australian project finance entity Reliance Rail Finance Pty. Ltd.
to positive from stable. "At the same time, we affirmed the
'CCC+' issue rating on RRF's senior-secured debt and our 'CCC-'
rating on the junior-secured debt," S&P said.
"The rating outlook revision on the A$2.06 billion senior-secured
debt and A$100 million junior-secured debt issued by Reliance
Rail Finance Pty. Ltd. reflects our view that the risk of non-
availability of the residual bank debt has reduced. About A$128.5
million of outstanding funding is required to complete the train
sets," Standard & Poor's credit analyst Philip Grundy said.
"Moreover, we expect continued improvements in the manufacture
and operational performance of the trains and Through Life
Support Contractor, a special purpose subsidiary of Downer EDI
Rail (not rated)."
"Our concerns as to the certainty and availability of funding
have been ameliorated somewhat with the sizable drawdown to date.
As at Oct. 30, 2012, RRF's A$357 million bank debt facilities
were drawn to A$228.5 million, or 64% of the total commitment,"
S&P said.
If the project continues on its current path, S&P sees the
ratings being raised by at least one notch within the next 12
months once:
-- The bank debt is fully funded;
-- Trains are delivered per current forecast, and the operating
standards are improved or maintained on a larger scale; and
-- There are no concerns with regard to continued reliance on
pass-through and retention mechanisms under the rolling stock
manufacture contract to maintain sufficient funding to
complete the project.
"The reliance on the pass-through mechanisms to maintain funding
during the manufacturing phase, and our concerns over ongoing
refinancing risk and the resultant lower financial metrics are
likely to limit the level of upward transition over the medium to
longer term. The positive outlook assumes that there is no
impediment to bank debt drawdowns and that all financiers and
swap counterparties continue to work cooperatively toward the
long-term success of the project," S&P said.
Mr. Grundy added: "The outlook could return to stable, or there
could be downward pressure on the rating if we believed there
were any impediment to future bank debt drawdowns; if we believed
that there was a risk of termination of undrawn bank debt
facilities, or hedge arrangements; or if the operational
performance of the trains were to deteriorate."
Other factors that could cause the outlook to return to stable,
or even result in negative rating pressure, would include, S&P
said:
-- Delays to the delivery schedule, acceptance process, or
inability to meet reliability requirements under the project
agreement;
-- If Reliance Rail were unable to continue to mitigate the
cash flow impact of delays in a timely manner;
-- If S&P believed that the project could be exposed to
consumer price inflation (CPI) and/or interest rate risk
beyond the 2018 initial debt refinance.
"Although all of the factors are relevant to both the senior- and
junior-secured debt, it is by no means certain that the ratings
of the two would move in lock-step with each other," S&P said.
* Lloyd's Aussie Unit Sells Bad Loans to KKR, Allegro Funds
-----------------------------------------------------------
Gillian Tan at Deal Journal Australia reports that a consortium
comprising KKR & Co.'s Special Situations Group and Sydney-based
Allegro Funds has bought a portfolio of distressed corporate
loans from Lloyds Banking Group PLC's BOS International unit,
people familiar with the matter said Thursday, Nov. 8.
According to the Deal Journal, one of the people said the
portfolio had a face value of 350 million Australian dollars
(US$364 million) but was sold at an undisclosed discount.
Over the past year, the report notes, BOS International has sold
distressed property loans worth AUD3.5 billion to consortia
including Blackstone and Morgan Stanley MS -8.58%, and Goldman
Sachs and Brookfield Asset Management.
The Deal Journal relates that the KKR-Allegro sale is expected to
be the last portfolio of non-core loans sold by the bank, a
second person familiar with the matter said. Following the sale,
BOS International's Australian impaired exposure will sit at
around AUD500 million in property loans, and less than AUD650
million in corporate loans.
In Australia, BOS International is involved in corporate lending,
project finance, risk management, and treasury finance, the Deal
Journal discloses.
=========
C H I N A
=========
CHINA LUMENA: Moody's Revises 'B2' Rating Outlook to Positive
-------------------------------------------------------------
Moody's Investors Service has changed to positive from negative
the outlook for China Lumena New Materials Corp.'s B2 issuer and
senior unsecured bond ratings.
Moody's has also affirmed the company's B2 corporate family
rating.
Ratings Rationale
"The change in outlook reflects the improved funding stability
and debt maturity profile, as China Lumena will now redeem in
advance the USD250 million senior unsecured notes, with a 6-year
term bank loan facility from China Development Bank," says Alan
Gao, a Moody's Vice President and Senior Analyst.
On October 28, China Lumena said it would redeem the whole amount
of USD250 million senior unsecured notes due October 2014 at a
redemption price of 106, with a 6-year bank loan from China
Development Bank. Moody's expects the bond redemption to be
completed by 30 November 2012. The company plans to use the bank
loan to repay some short-term offshore commercial bank loans.
"The low cost bank loan from China Development Bank will lower
the company's total annual interest cost by approximately 30%,
which in turn will be positive for its credit metrics," adds
Mr. Gao.
The China Development Bank loan facility has substantially lower
interest rates at Libor plus 5% compared with the 12% coupon rate
of the senior secured bond. As a result, Moody's expects China
Lumena's interest coverage to remain above 5x in the next 1 -2
years.
China Lumena's B2 ratings reflect its leading market positions in
two products -- thenardite and polyphenylene sulphide (PPS) -- in
China. Another factor supporting its rating is its high EBITDA
margin of around over 50% for both thenardite and PPS and which
provides a buffer against fluctuations in prices and demand.
On the other hand, the company's rating is constrained by its
short track record, historically aggressive expansion plan, and
persistent negative free cash flows. It also reflects the
potential financial impact from the private business of its major
shareholder. The acquisition of Sino Polymer is an example of an
asset acquired from its major shareholder, but which has not
provided many synergies.
Upward rating pressure could emerge if: (1) the business
integration of Sino Polymer is smoothly executed and without any
adverse impact on the company's liquidity and credit metrics,
such that debt/EBITDA remains below 2.0x or EBITDA/interest
expense is above 5x--6x; (2) the company shows prudence in
managing its cash flow; (3) its long-term corporate strategy
shows improvement in terms of transparency and consistency; and
(4) China Lumena establishes a track record of discipline in its
acquisitions.
Downward rating pressure could emerge if: (1) there is a material
decline in China Lumena's profitability and ability to generate
cash flow; (2) it carries out material debt-funded investments
and capex; (3) evidence emerges of cash leakage to its major
shareholder or related parties; or (4) its liquidity profile
weakens and its cash balance declines substantially.
The credit metrics that Moody's would consider for a rating
downgrade include debt/EBITDA exceeding 4x-5x or EBITDA interest
coverage falling below 3x -4x.
The principal methodology used in rating Lumena was the Global
Chemical Industry Methodology published in December 2009.
China Lumena New Materials Corp has two business segments: (1)
the mining, processing and manufacturing of thenardite, and (2)
the production of polyphenylene sulphide (PPS). The PPS business
was acquired in January 2011 from Sino Polymer, previously owned
by China Lumena's major shareholder.
PPS is a high-performance thermoplastic characterized by its
chemical-resistant properties and thermal stability. It is used
in various industries, including environmental protection,
automotive, electric and electronics, and aerospace. China Lumena
was listed on the Hong Kong Stock Exchange in June 2009. Its
founder and major shareholder, Mr. Suolang Duoji, owned 33.5% as
of June 30, 2012.
GEMDALE CORP: S&P Gives 'BB-' Rating on USD-Denominated Sr. Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' issue
rating and 'cnBBB-' Greater China regional scale issue rating to
the proposed issue of U.S. dollar-denominated benchmark sized
senior unsecured notes by Gemdale International Investment Ltd.
(not rated). Famous Commercial Ltd. (not rated) and five other
offshore subsidiaries of Gemdale Corp. (Gemdale: BB+/Stable/--;
cnBBB+/--) unconditionally and irrevocably guarantee the notes.
The ratings are subject to S&P's review of the final issuance
documentation.
Gemdale owns 100% of Famous, its Hong Kong-based offshore holding
company and financial platform. Gemdale International Investment
is a special-purpose vehicle that Famous fully owns. S&P applies
a top-down approach while assessing the parent-subsidiary link
between Gemdale and Famous because the stand-alone credit profile
of Famous is not meaningful, in S&P's view, given the group
structure and transaction arrangement.
The issue rating is two notches below the long-term corporate
credit rating on Gemdale because, S&P said:
-- S&P views Famous as a 'highly strategic' subsidiary, but not
a 'core' subsidiary, of Gemdale. Famous and Gemdale are
strategically, financially, and operationally integrated.
But Famous has a limited operating history, having been
founded in 2005. Famous also has a small scale, with total
assets accounting for only 10% of Gemdale's total assets.
-- The timeliness of the financial support from Gemdale to
Famous is uncertain due to China's controls over foreign
exchange and capital, and uncertainty relating to regulatory
approvals.
-- A keepwell agreement (i.e., a commitment to avoid the risk
of insolvency) and an undertaking for an equity interest
purchase between Gemdale and Famous demonstrate the parent's
strong support to the subsidiary. Nevertheless, S&P don't
view these agreements as a guarantee that would equalize the
issue rating with the rating on Gemdale.
"Gemdale intends to use the bond proceeds to refinance some
existing debt obligations, extending the company's maturity
profile. Gemdale will not incur significantly more debt than
anticipated in our base case. Nevertheless, we see limited
headroom for additional borrowings at the current rating level
after factoring in the proposed bond issue," S&P said.
"The rating on Gemdale reflects the company's low asset turnover
and large exposure to the high-end residential property segment,
which is vulnerable to unfavorable regulations. Gemdale's lower
profitability and weaker credit ratios than peers with a similar
market position also constrain the rating. Nevertheless, the
company's established market position and geographically diverse
operations, its long record of steady growth through market
cycles, and its consistent financial management with good
financial flexibility support the rating," S&P said.
"The stable outlook reflects our view that Gemdale can generate
satisfactory property sales in a challenging market and maintain
adequate liquidity to meet its financial obligations. We expect
the company to continue to have a large unrestricted cash balance
and good access to bank credit to support its operations," S&P
said.
STUDIO CITY: S&P Gives 'B+' Corp. Credit Rating; Outlook Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Macau-based gaming company Studio City
Co. Ltd. The outlook is stable. "At the same time, Standard &
Poor's assigned its 'B-' issue rating to a proposed issue of
senior notes by Studio City Finance Ltd., which wholly owns
Studio City. We also assigned our long-term 'cnBB' Greater China
regional scale rating to Studio City and our 'cnB+' Greater China
credit scale rating to the proposed issue. Studio City Finance's
existing and future restricted subsidiaries will guarantee the
notes. The issue rating is subject to our review of the final
issuance documentation," S&P said.
"The rating on Studio City reflects the company's highly
leveraged capital structure and significant construction and
execution risks associated with its integrated gaming resort,
called Studio City Project, in Cotai, Macau. In addition, Studio
City is exposed to single-property risk in Macau. The good growth
prospects of Macau's gaming market and our expectation of ongoing
support from the project sponsor, Melco Crown Entertainment Ltd.
(MCE; not rated), temper these weaknesses," S&P said.
Studio City's 'b' stand-alone credit profile (SACP) reflects the
company's "weak" business risk profile and "highly leveraged"
financial risk profile. "The long-term rating on Studio City is
one notch higher than the SACP to reflect our expectation of some
support from MCE, which has a 60% stake in the company. MCE
wholly owns Melco Crown Gaming (Macau) Ltd. (BB/Stable/--;
cnBBB-/--). The proposed casino at Studio City will be operated
by Melco Crown Gaming under its sub-concession," S&P said.
"In our view, Studio City has significant construction and
execution risks associated with the development of Studio City
Project. The company's engagement of a main construction
contractor in October 2012 and entry into a fixed-price contract
for the majority of hard construction costs tempers this risk. In
addition, we expect the proposed resort to face intense
competition in Cotai, which is becoming the heartland of gaming
in Macau. Macau is also exposed to the economic volatility and
policy risks in China, given its reliance on the Chinese market
for the bulk of its customers. The limited transportation and
labor resources in Macau pose additional risks. Nevertheless, we
believe Studio City's business fundamentals are favorable,
reflecting the robust growth in the Macau gaming market," S&P
said.
"In our base-case projection, we expect annual growth in gross
gaming revenue to moderate to about 5% by 2015 and 2016, when the
resort is scheduled to open in mid-2015. We estimate the total
project development costs at about US$2.95 billion (including
land premiums) in 2012-2015. We also anticipate that free cash
flow will be negative until the opening of the resort," S&P said.
"We expect the ramp-up of Studio City to benefit from MCE's
experience in managing new resort developments in Macau and the
sharing of customers with MCE. We anticipate that Studio City's
financial risk profile will strengthen significantly in 2016 when
the resort is fully operational," S&P said.
"We rate the proposed senior notes two notches lower than the
corporate credit rating on Studio City due to structural
subordination risk in the event of a default. The bond issue will
rank behind senior secured bank facilities of about US$1.4
billion equivalent (comprising a US$1.3 billion term loan and a
US$100 million revolving credit line) in a recovery scenario,"
S&P said.
"The stable outlook on Studio City reflects our view that the
timing and costs of Studio City Project will be in line with our
expectation. Our rating outlook also factors in strong ongoing
managerial and financial support from MCE," S&P said.
"We could lower the rating on Studio City if: (1) project
construction costs significantly increase without any offsetting
additional equity contributions; (2) the opening of Studio City
Project is materially delayed beyond 2015; or (3) the company's
liquidity position materially deteriorates. In addition, we could
downgrade Studio City if the company's strategic importance to
MCE materially diminishes or MCE's credit profile weakens," S&P
said.
"Rating upside is limited in the next few years, given Studio
City's heavy capital requirements and execution risk ahead of the
resort's scheduled opening in 2015," S&P said.
================
H O N G K O N G
================
BEAUTY LABORATORY: Court to Hear Wind-Up Petition on Dec. 12
------------------------------------------------------------
A petition to wind up the operations of Beauty Laboratory Limited
will be heard before the High Court of Hong Kong on Dec. 12,
2012, at 9:30 a.m.
Chan Ming Hung filed the petition against the company on Oct. 4,
2012.
The Petitioner's solicitors are:
Reed Smith Richards Butler
20th Floor, Alexandra House
16-20 Chater Road
Central, Hong Kong
DESIGN NETWORK: Court to Hear Wind-Up Petition on Nov. 14
---------------------------------------------------------
A petition to wind up the operations of Design Network Action
Limited formerly known as DNA Solutions (HK) Limited will be
heard before the High Court of Hong Kong on Nov. 14, 2012, at
9:30 a.m.
Fong Chun Tung filed the petition against the company on June 5,
2012.
The Petitioner's solicitors are:
Chan, Lau & Wai
8th Floor, Asia Standard Tower
Nos. 59-65 Queen's Road
Central, Hong Kong
DINKIND KNITTING: Court to Hear Wind-Up Petition on Jan. 9
----------------------------------------------------------
A petition to wind up the operations of Dinkind Knitting (China)
Factory Limited will be heard before the High Court of Hong Kong
on Jan. 9, 2013, at 9:30 a.m.
DBS Bank (Hong Kong) Limited filed the petition against the
company on Oct. 18, 2012.
The Petitioner's solicitors are:
Siao, Wen and Leung
16th Floor, Unicorn Trade Centre
127-131 Des Voeux Road
Central, Hong Kong
ESSENTIAL INDUSTRIES: Creditors Get 100% Recovery on Claims
-----------------------------------------------------------
Essential Industries Limited, which is in creditors' voluntary
liquidation, declared the first and final dividend to its
creditors on Nov. 2, 2012.
The company paid 100% for preferential and 18% for ordinary
claims.
The company's liquidators are:
Cosimo Borrelli
G Jacqueline Fangonil Walsh
Level 17, Tower 1
Admiralty Centre
18 Harcourt Road
Hong Kong
HIN FAI: Creditors to Get 67.729% Recovery on Claims
----------------------------------------------------
Hin Fai Limited, which is in liquidation, will declare dividend
to its creditors on or after Nov. 30, 2012.
The company will pay 67.729% for preferential claims.
The company's liquidators are:
Wong Man Chung Francis
Wong Wai Man Cliff
19 Floor, No. 3 Lockhart Road
Wanchai, Hong Kong
HOLD TIMING: Court to Hear Wind-Up Petition on Jan. 9
-----------------------------------------------------
A petition to wind up the operations of Hold Timing Development
Limited will be heard before the High Court of Hong Kong on
Jan. 9, 2013, at 9:30 a.m.
Midland Realty (Comm. & Ind.) Limited filed the petition against
the company on Oct. 19, 2012.
The Petitioner's solicitors are:
Tony Kan & Co
Suite 1808, World-Wide House
No. 19 Des Voeux Road
Central, Hong Kong
HUA WEI: Creditors to Get 100% Recovery on Claims
-------------------------------------------------
Hua Wei Pharmaceutical and Chemical Company Limited, which is in
liquidation, will declare dividend to its creditors on or after
Nov. 30, 2012.
The company will pay 100% for preferential and 16.650% for
deferred preferential claims.
The company's liquidators are:
Wong Man Chung Francis
Wong Wai Man Cliff
19 Floor, No. 3 Lockhart Road
Wanchai, Hong Kong
MARSHEL EXPORTS: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on Oct. 24, 2012, to
wind up the operations of Marshel Exports Limited.
The official receiver is Teresa S W Wong.
PS EXIM: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on Oct. 22, 2012, to
wind up the operations of PS Exim (HK) Limited.
The official receiver is Teresa S W Wong.
SUPER SPEED: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on Oct. 24, 2012, to
wind up the operations of Super Speed Limited.
The official receiver is Teresa S W Wong.
TAIYON RESOURCES: Court to Hear Wind-Up Petition on Dec. 12
-----------------------------------------------------------
A petition to wind up the operations of Taiyon Resources Limited
will be heard before the High Court of Hong Kong on Dec. 12,
2012, at 9:30 a.m.
Chan Mun Ting filed the petition against the company on Oct. 4,
2012.
The Petitioner's solicitors are:
K. C. Ho & Fong
18th Floor, Henley Building
No. 5 Queen's Road
Central, Hong Kong
TAK MING: Creditors to Get 0.21% Recovery on Claims
---------------------------------------------------
Tak Ming Packing Product Company Limited, which is in
liquidation, will declare the first and final dividend to its
creditors on or after Nov. 23, 2012.
The company will pay 0.21% for ordinary claims.
The company's liquidator is:
Yuen Tsz Chun Frank
5th Floor, Ho Lee Commercial Building
38-44 D'Aguilar Street
Central, Hong Kong
WAI TAK: Court to Hear Wind-Up Petition on Jan. 9
-------------------------------------------------
A petition to wind up the operations of Wai Tak Printing Company
Limited will be heard before the High Court of Hong Kong on
Jan. 9, 2013, at 9:30 a.m.
DBS Bank (Hong Kong) Limited filed the petition against the
company on Oct. 18, 2012.
The Petitioner's solicitors are:
Siao, Wen and Leung
16th Floor, Unicorn Trade Centre
127-131 Des Voeux Road
Central, Hong Kong
WINFORD DEVELOPMENT: Court to Hear Wind-Up Petition on Dec. 19
--------------------------------------------------------------
A petition to wind up the operations of Winford Development
Limited will be heard before the High Court of Hong Kong on
Dec. 19, 2012, at 9:30 a.m.
Fung Wai Lun filed the petition against the company on Oct. 15,
2012.
WONG INVESTMENT: Court to Hear Wind-Up Petition on Nov. 21
----------------------------------------------------------
A petition to wind up the operations of Wong Investment
Development Holdings Group Limited will be heard before the High
Court of Hong Kong on Nov. 21, 2012, at 9:30 a.m.
BOCOM International Holdings Company Limited filed the petition
against the company on Sept. 13, 2012.
The Petitioner's solicitors are:
Reed Smith Richards Butler
20th Floor, Alexandra House
16-20 Chater Road
Central, Hong Kong
=========
I N D I A
=========
ABHAY COTEX: CARE Assigns 'BB-' Rating to INR52.28cr LT Loan
------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' to the bank facilities of
Abhay Cotex Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 52.28 CARE BB- Assigned
Short-term Bank Facilities 1.8 CARE A4 Assigned
Rating Rationale
The ratings of Abhay Cotex Pvt. Ltd. are constrained by the short
track record of operations, vulnerability of operating margins to
raw material price fluctuation, working capital intensive
nature of operations, exposure to foreign exchange fluctuation
risk and presence in the fragmented & competitive industry. The
ratings are further constrained by ACPL's inherent project
execution risk.
The above-mentioned constraints far offset the strength derived
from the experience of the promoters, continuous financial
support in the past, government-recognized & patented technology
and moderate financial risk profile. The ability of the ACPL to
increase its scale of operations with maintaining the
profitability margins as envisaged and timely start of commercial
operations of the Dhulia plant are the key rating sensitivities.
Abhay Cotex Private Limited was incorporated in 2008 by Mr.
Ashish Mantri and it commenced operation in January 2010. The
company is into cotton seed solvent extraction, cotton seed de-
oiled cakes and cotton seed oil. Cotton oil and de-oiled cakes
contribute approximately 40% of the total income and remaining is
contributed by hulls and lints. Currently, ACPL has two plants
(at Jalna & Dhulia), each with a capacity of 180,000 MT per
annum. The Dhulia plant is yet to start the commercial operation
& the Jalna plant had commenced operations in January 2010.
In FY11 (first full year of operations; refers to the period
April 01 to March 31), ACPL posted total income of INR92.30 crore
and PAT of INR4.45 crore. Furthermore, as per the 11MFY12
provisional results, ACPL has reported revenue of INR108.54 crore
with a PAT of INR1.38 crore.
ALA FOODSTUFF: CARE Assigns 'BB-' Rating to INR18.93cr LT Loan
--------------------------------------------------------------
CARE assigns 'CARE BB-' rating to the bank facilities of Ala
Foodstuff (P) Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 18.93 CARE BB- Assigned
Rating Rationale
The rating assigned to the bank facilities of Ala Foodstuff (P)
Ltd. is primarily constrained by its highly leveraged capital
structure coupled with low profitability margins, short track
record of operations, exposure to foreign currency fluctuations
and its presence in a highly fragmented and competitive industry.
The rating is further constrained due to AFSL's exposure to
volatility in the raw material prices and high degree of
government regulation limiting the bargaining power of rice
millers.
The above constraints are partially offset by the strengths
derived from the experienced promoters of AFSL, healthy growth in
operations during short span of time and proximity to raw
material sources.
Going forward, the company's ability to increase its scale of
operations along with the improvement in the profitability
margins and solvency position will remain the key rating
sensitivities.
AFSL was incorporated in 2007 as a private limited company by
Mr. Rajesh Mehra and Mr. Naveen Arora. Subsequently, in 2009,
Mr. Rajeev Arora, younger brother of Mr. Naveen Arora, joined the
company as a director and at the same time Mr. Rajesh Mehra
parted ways. The commercial operations of the company started
from FY11 (refers to the period April 1 to March 31).
AFSL is engaged in milling, processing and selling of various
varieties of rice, especially basmati rice. The company has a
rice mill located at Amritsar, Punjab, with an installed capacity
of 4 tonnes per hour. AFSL's product mix comprises different
varieties of rice, namely, sella 1121 basmati, brown rice,
sarbati rice, steamed rice and raw basmati rice. The company
procures paddy and semiprocessed rice from local grain market.
The processed basmati rice is sold under the brand name 'ALA' in
Delhi, Maharashtra and Punjab through dealers. The company also
exports mainly to
Middle Eastern countries. However, Basmati rice is exported under
the private labels as required by the overseas distributor.
In FY12 (refers to the period April 1 to March 31), AFSL has
achieved a total operating income of INR74.97 crore with a PAT of
INR1.41 crore.
ALANG SHIP: CARE Assigns 'CARE BB' Rating to INR3cr LT Loan
-----------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4+' ratings to the bank
facilities of Alang Ship Breaking Corporation.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 3 CARE BB Assigned
Short-term Bank Facilities 26 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 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 ratings of Alang Ship Breaking Corporation are constrained
due to its presence in the ship-breaking industry characterized
by cyclical nature, high volatility in the steel prices and
foreign exchange rates and high regulatory and environmental
hazards risk. The ratings are also constrained due to its thin
profitability, high overall gearing and constitution as a
partnership firm.
The ratings, however, draw strength from the experienced partners
and favorable prospects for Indian ship-breaking industry in the
medium term.
The ability of the firm to increase the scale of operations,
improve profitability and manage fluctuations in the steel prices
as well as forex rates are the key rating sensitivities.
Incorporated in 1992 as a partnership firm, ASBC is engaged in
the ship-breaking activity in the Alang-Sosiya belt of Bhavnagar
region in Gujarat. The plot no. 93, admeasuring 1,350 square
meters, is leased by Gujarat Maritime Board (GMB) for a period of
one year and on completion of the tenure of agreement, it is
generally renewed. The another group concern P. Patel Ship
Breaking Co, a partnership firm, is also engaged in the ship-
breaking activity in the same region. The partners of both the
firms are from a common family and have experience of more than
two decades in the ship-breaking industry. Both the firms
together have dismantled more than 60 ships till September 30,
2012.
During FY12 (refers to the period April 1 to March 31), ASBC
reported total operating income of INR54.06 crore (INR31.86 crore
in FY11) and profit after tax of INR0.63 crore (INR0.62 crore in
FY11).
BALRAM COTTON: CARE Rates INR6.25cr LT Loan at 'CARE B'
-------------------------------------------------------
CARE assigns 'CARE B' ratings to the bank facilities of Balram
Cotton Industries.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 6.25 CARE B Assigned
The rating assigned by CARE is based on the capital deployed by
the proprietor and the financial strength of the firm at present.
The rating may undergo change in case of withdrawal of capital or
the unsecured loans brought by the proprietor in addition to the
financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Balram Cotton
Industries is mainly constrained on account of its weak financial
risk profile characterized by highly leveraged capital structure,
thin profitability margin and stressed liquidity position. The
rating is further constrained on account of its presence in the
highly competitive and fragmented cotton-ginning business with
limited value addition, volatile raw material (cotton) prices,
impact of regulatory changes on cotton and BCI's constitution as
a proprietorship firm.
The rating, however, favorably takes into account the experience
of the proprietor in cotton-ginning business and proximity to the
cotton-producing regions of Gujarat.
The ability of BCI to increase its scale of operations in light
of competitive nature of the industry along with improvement in
the financial risk profile remains the key rating sensitivity.
BCI was constituted in 2004 as a proprietorship firm by
Mr. Nitesh Thakker based out of Dholka, Ahmedabad (Gujarat). BCI
is engaged in the cotton ginning and pressing activities with an
installed capacity of 4,590 Metric Tonnes Per Annum (MTPA) for
cotton bales, 7,838 MTPA for cotton seeds and 1,088 MTPA for wash
oil as on March 31, 2012, at its manufacturing facility located
at Dholka in Ahmedabad (Gujarat).
During FY12 (refers to the period April 1 to March 31), BCI
reported total income of INR34.75 crore with a PAT of INR0.12
crore as against the total income of INR28.14 crore and PAT of
INR0.43 crore during FY11.
GANGOTRI PAPER: CARE Assigns 'CARE BB' Rating to INR50cr Loan
-------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Gangotri Paper Mills Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 50 CARE BB Assigned
Short-term Bank Facilities 3 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Gangotri Paper
Mills Pvt Limited are constrained by its financial risk profile
characterized by high overall gearing, low profitability
margins, susceptibility of margins to volatility in raw material
price and short track record of operations. The ratings, however,
derive strength from the experience of the promoters in the paper
industry, their established marketing network and the
stabilization of the plant leading to increased capacity
utilization in FY12 (refers to the period April 1 to March 31).
Going forward, the ability of GPMPL to improve its profitability
margins, effectively utilise its capacities and to maintain its
capital structure would remain the key rating sensitivities.
Incorporated in 2007, Gangotri Paper Mills Pvt Limited is
promoted by Mr. Vinod Mittal, Mr. Sanjay Kumar Mittal and Mr.
Pranay Mittal.
The promoters of GPMPL established a kraft paper manufacturing
facility in January 2011 at a total project cost of INR56 crore
funded through debt of INR33.5 crore and remaining through equity
contribution and unsecured loans from the promoters. GPMPL
commenced commercial production from January 2011 and FY12 was
the first full year of operations. GPMPL has its manufacturing
facilities located at Haridwar (Uttrakhand) with an installed
capacity of 50,000 tonne per annum.
GPMPL recorded total operating income of INR101 crore and net
profit of INR0.8 crore during FY12.
HDPL INFRASTRUCTURE: CARE Places 'BB+' Rating on INR50cr Loan
-------------------------------------------------------------
CARE assigns 'CARE BB+' and 'CARE A4+' ratings to the bank
facilities of HDPL Infrastructure Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 50 CARE BB+ Assigned
Long/Short-term Bank 200 CARE A4+ Assigned
Facilities
Rating Rationale
The ratings of HDPL are constrained by relatively moderate scale
of operations, geographical concentration of revenue, modest
order book position as on June 30, 2012, high dependence on
government-funded infrastructure projects, exposure to raw
material price risk and fragmented industry with many players
competing for infrastructure development projects.
The above rating weaknesses are partially offset by experienced
promoters and established track record of operations, moderate
financial risk profile and self-owned asset base for execution of
majority of its contracts.
Going forward, ability of the company to consistently increase
its order book and scale up operations would be the key rating
sensitivities.
HDPL Infrastructures Ltd., (formerly known as Hitech Drillers
Private Ltd.) is a Lucknow-based construction company which was
incorporated in 1992 as a private limited company and converted
to a public limited company in 2007. The company is promoted by
Mr. Anuj Kumar Aggarwal and Mr. Kapil Aggarwal along with family
members. The promoters have more than three decades of
experience in executing civil contracts for Government entities
through their partnership firm R.K. Aggarwal & Sons.
The company operates in segments such as construction and
maintenance of roads, civil construction, fabrication work and
commissioning of water and sewage treatment plants. HDPL is
providing its services to various Public Sector Undertakings, and
Central Public Works Department.
The contract revenue is highly skewed towards the Public sector.
The major clients for HDPL are NHAI, U.P.P.W.D, and Lucknow
Development Authority.
During FY11 (refers to the period April 01 to March 31), HDPL
earned a PAT of INR 0.61 cr on a total operating income of
INR62.04 cr (refers to the period April 01 to March 31). During
FY12, HDPL has achieved a total operating income of INR129.32 cr
with a PAT of INR3.47 cr.
KINGFISHER AIRLINES: Needs Fresh Capital to Keep Flying
-------------------------------------------------------
The Times of India reports that the State Bank of India, the lead
bank to Kingfisher Airlines Limited, on Tuesday cautioned the
carrier that it "will not fly" if it fails to bring in fresh
capital by November 30.
"The banks' consortium has done everything possible to make the
company (Kingfisher) work. Only the company is not working . . .
The management has to get capital. We have given time till
November 30 that they should get capital, otherwise the company
will not fly . . .," the report quotes SBI chairman Pratip
Chaudhuri as saying. He further said the airline would not be
able to get investors if it is not flying.
According to the report, Mr. Chaudhuri said the consortium of 17
banks have been meeting regularly to help the cash-strapped
airline. SBI has over INR1,500 crore of debt exposure to
Kingfisher. The bank chairman said the consortium, led by SBI,
has made available to Kingfisher INR7,000 crore in all to keep it
flying, the report relays.
The Directorate General of Civil Aviation (DGCA), however,
recently suspended the flying license of Kingfisher following the
airline's failure to come up with a viable plan for financial and
operational revival, TOI says.
Meanwhile, TOI reports that Kingfisher said it is working on a
comprehensive revival plan that will be given to aviation
regulator DGCA in the next few weeks. "We are working on a
comprehensive plan which will address the interests of all
stakeholders and this will be submitted to DGCA," an airline
spokesperson said when asked about their plans to get the
suspension of its scheduled operator's permit - valid till this
year-end -- revoked, TOI adds.
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.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 5, 2012, The Times of India said Kingfisher Airlines has
now been given a reality check by its auditors in the company's
annual report 2011-12. The company had current liabilities,
including borrowings and trade payables of INR8,436 crore,
against current assets of INR1,618.8 crore at the end of
March 2012. According to TOI, the Vijay Mallya-promoted company
has defaulted in repayment of loans to banks and financial
institutions, for which several lenders have had to take a hit by
setting aside more funds, with overdues estimated at nearly
INR800 crore at the end of March 2012.
Kingfisher, which has been unprofitable since it was created in
2005, accumulated losses of $1.9 billion between May 2005 and
June 30 of this year, The Wall Street Journal reported citing
Sydney-based consultant CAPA-Centre for Aviation. The airline
also owes about $2.5 billion to lenders, suppliers, leasing
companies and investors, the Journal added.
MALAXMI HIGHWAY: CARE Rates INR248.41cr LT Loan at 'CARE C'
-----------------------------------------------------------
CARE assigns 'CARE C' rating to the bank facilities of Malaxmi
Highway Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 248.41 CARE C Assigned
Rating Rationale
The rating is constrained by the recent delays in servicing debt
obligations by MHPL, past delays in the annuity receipt and
project execution risk with respect to the balance portion of the
unexecuted stretch. The rating also considers the moderate
strength of the promoters, low revenue risk and fixed price
Operation & Maintenance (O&M) arrangement with its sponsor. The
ability of the company to improve its cash flows, the timely
receipt of annuity income and the ability to complete the balance
project within the expected cost are the key rating
sensitivities.
Malaxmi Highway Pvt. Ltd. is a Special Purpose Vehicle promoted
by Meenakshi Infrastructures Pvt. Ltd. (49%), Nava Bharat
Ventures Ltd. (1%) and its associate - Kinnera Power Co. Ltd
(50%) to undertake widening of the existing two lane to four lane
portion from Km 547/400 to Km 596/750, covering 49.35 Km on NH-7
in Madhya Pradesh on Built, Operate & Transfer (BOT) Annuity
basis.
The Concession Agreement (CA) was executed between MHPL and
National Highways Authority of India (NHAI) on September 29,
2006, for a concession period of 20 years. The project was
implemented and completed on schedule as per the terms of the
concession agreement and declared COD (for the completed stretch)
on September 29, 2009.
For FY12 (refers to the period April 01 to March 31), MHPL
recorded annuity income of INR44.84 crore with PAT of
INR1.16 crore.
PANCHVATI SHIP: CARE Rates INR9cr LT Loan at 'CARE BB'
------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4+' ratings to the bank
facilities of Panchvati Ship Breakers.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 9 CARE BB Assigned
Short-term Bank Facilities 71 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 withdrawal of capital
or
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 Panchvati Ship
Breakers are constrained mainly by inherently high operating risk
in cyclical, highly competitive and labour-intensive shipbreaking
business. The ratings further take into account the financial
risk profile marked by fluctuating profitability margin and high
overall gearing ratio, risk from adverse movement in steel
prices on uncut ship inventory, foreign exchange exposure, and
exposure to regulatory and environmental hazards risk.
The above constraints are partially offset by the benefits
derived from the vast experience of the promoters in the ship-
breaking industry and Panchvati's presence in the Alang-Sosiya
belt.
The ability of Panchvati to increase the scale of operations
while effectively managing fluctuation in steel as well as
foreign exchange rates and timely renewal of leased plot from the
Gujarat Maritime Board (GMB) are the key rating sensitivities.
Incorporated in 2000, Panchvati is promoted by Mr. Ramesh Kumar
S. Padia and Mr. Birjubhai B. Padia. Panchvati is engaged in
ship-breaking activity at a plot having frontage of 71 meter in
the Alang-Sosiya belt of Bhavnagar region. The plot is leased by
GMB for a period of one year and on completion of the tenure of
agreement, the lease is renewed at prevailing lease rental rates.
Panchvati purchases old ships, breaks them into steel plates, and
supplies the same to steel rolling mills in Gujarat.
PARSVNATH ESTATE: CARE Rates INR90cr LT Loan at 'CARE BB+'
----------------------------------------------------------
CARE assigns 'CARE BB+' rating to the bank facilities of
Parsvnath Estate Development Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 90 CARE BB+ Assigned
Rating Rationale
The rating factors in the relatively high business risk
associated with Parsvnath Estate Development Private Limited
arising out of absence of lease tie-ups, residual construction
risk and susceptibility of the commercial real estate to economic
cycles. However, the rating derives strength from the experienced
promoters, strategic location of the commercial property,
presence of reputed contractor and degree of project
preparedness.
Going forward, the ability of the company to enter into lease
tie-ups with reputed clients and achieve envisaged
occupancy/lease rates and any change in the regulatory
environment would be the key rating sensitivities.
Parsvnath Estate Developers Pvt. Ltd. was incorporated on
July 24, 2007, under the name Farhat Developers Private Limited.
The name of the company was changed to its present name in
November 2010. PEDPL operates as a Joint Venture (JV) between
Delhi-based developer Parsvnath Developers Limited (PDL: holding
75.5% equity stake) and RFC (holding 24.5% equity stake), a
private equity real estate firm focused on India.
PEDPL is developing a single commercial project, Red Fort
Parsvnath Tower (RFP Tower), near Connaught Place, New Delhi,
under a concession agreement between PDL, the promoter company
of PEDPL, and Delhi Metro Rail Corporation. The total leasable
area to be developed is approximately 2.84 lakh square feet
(lsf). The construction of the building is expected to be
completed in Q3FY13 at an estimated cost of approximately INR265
crore. The project is to be funded by term debt of INR90 crore
and the promoter funds of INR175 crore (in the form of equity and
unsecured debt).
The company has incurred INR209 crore till March 2012, funded by
bank loans of INR33 crore and promoter funds of INR176 crore.
P. PATEL: CARE Assigns 'CARE BB' Rating to INR6cr LT Loan
---------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4+' ratings to the bank
facilities of P. Patel Ship Breaking Co.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 6 CARE BB Assigned
Short-term Bank Facilities 58 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 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 ratings of P. Patel Ship Breaking Co. are constrained due to
its presence in the shipbreaking industry characterized by
cyclical nature, high volatility in the steel prices and foreign
exchange rates and high regulatory and environmental hazards
risk. The ratings are also constrained due to its thin
profitability, high overall gearing and constitution as a
partnership firm.
The ratings, however, draw strength from the experienced partners
and favorable prospects for Indian ship-breaking industry in the
medium term.
The ability of the firm to increase the scale of operations,
improve profitability and manage fluctuations in the steel prices
as well as forex rates are the key rating sensitivities.
Incorporated in 1992 as a partnership firm, PPSBC is engaged in
the ship-breaking activity in the Alang-Sosiya belt of Bhavnagar
region in Gujarat. The plot no. 46, admeasuring 2475 square
meters, is leased by Gujarat Maritime Board (GMB) for a period of
one year and on completion of the tenure of agreement, it is
generally renewed. The another group concern Alang Ship Breaking
Corporation, a partnership firm, is also engaged in the ship-
breaking activity in the same region. The partners of both the
firms are from a common family and have experience of more than
two decades in the ship breaking industry. Both the firms
together have dismantled more than 60 ships till September 30,
2012.
During FY12 (refers to the period April 1 to March 31), PPSBC
reported total operating income of INR87.22 crore (INR32.09 crore
in FY11) and profit after tax of INR1.20 crore (INR0.69 crore in
FY11).
SUZLON ENERGY: Lenders Seek to Acquire German Unit $967MM Loan
--------------------------------------------------------------
George Smith Alexander and Anto Antony at SmartCompany report
that three people with knowledge of the matter said lenders led
by State Bank of India are seeking to acquire loans made to
Suzlon Energy Ltd.'s German unit, a move that would enable
India's largest wind-turbine maker to access cash at the
business.
Bloomberg relates two of the people said the terms of a EUR750
million (US$967 million) loan, made to Repower Systems SE this
year, prohibit Suzlon from tapping the Hamburg-based unit's cash
or drawing on credit available to the business. The SBI-led group
plans to change those terms after acquiring the loan, the people
told Bloomberg.
Access to Repower's cash would help the Pune-based company
address debt that has reached INR140 billion (UR$2.6 billion) as
of March 31, data compiled by Bloomberg show. According to the
report, Suzlon, which has lost money for three years, failed to
repay $209 million of debt on Oct. 11 after bondholders rejected
its request for a four-month extension. The default was the
biggest on convertible bonds by an Indian company, the report
notes.
Antoine Bourgault, a London-based analyst at ISM Capital LLP,
citing data provided by Suzlon, discloses that Repower's cash
balance was about $163 million, Bloomberg reports. The German
unit also has $163 million of debt, "which may or may not have to
be redeemed," Mr. Bourgault said.
Bloomberg relates that Verena Puth, a spokeswoman at Repower,
said the terms of the loan that prevent Suzlon from tapping the
funds haven't changed and declined to provide the unit's
standalone cash balance or total debt.
"We are looking at ways to resolve the issue and need time to
sort this out," SBI Deputy Managing Director Santosh Nayar said
on Oct. 11.
The EUR750 million loan to Repower was made by a group led by
BayernLB Holdings AG, Commerzbank AG and Deutsche Bank AG, the
company said in March. Thirteen banks and credit insurance
companies took part in the loan which comprised a EUR725 million
letter of guarantee and a EUR25 million credit facility,
according to a March 1 statement.
About Suzlon Energy
Headquartered in Pune, India, Suzlon Energy Ltd (BOM:532667) --
http://www.suzlon.com/-- is engaged in the business of design,
development, manufacturing and supply of wind turbine generators
(WTGs) of a range of capacities and its components. Its
operations relate sale of WTGs and allied activities, including
sale/sub-lease of land, infrastructure development income; sale
of gear boxes, and sale of foundry and forging components.
Others primarily include power generation operations.
Suzlon Energy posted net losses of INR983 crore and INR1,324
crore in the year ended March 31, 2010 and 2011, respectively.
S.V. ALUEXT: CARE Assigns 'CARE B' Rating to INR9.24cr LT Loan
--------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank
facilities of S.V. Aluext Profile Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 9.24 CARE B Assigned
Short-term Bank Facilities 1.80 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of S.V. Aluext
Profile Private Ltd are constrained by the relatively small scale
of its operations with limited track record in the aluminium
extrusion industry, supplier concentration risk, low
profitability margins, high gearing and working capital intensive
nature of the operations in a competitive aluminum industry. The
ratings, however, derive strength from considerable experience of
the promoters in the automobile components manufacturing,
diversified customer base and product profile of the entity.
The ability of the company to grow its operations along with
improvement in its profitability and liquidity is the key rating
sensitivity.
Incorporated in August 2009, SVAP is promoted by Mr. Shivaji
Akhade along with his wife Mrs. Sheela Akhade. SVAP is engaged in
the manufacturing of aluminium extrusions of different alloys
which are required for various industrial applications. The
manufacturing facility of SVAP is located in Chakan industrial
area, Pune. The facility was setup in 2010 with an installed
capacity of 4,800 Metric Tonne per Annum (MTPA), which was
subsequently increased to 6,000 MTPA during FY12 (refers to the
period April 1 to March 31).
SVAP has reported PAT of INR0.31 crore on total operating income
of INR18.41 crore in FY12 as against loss of INR 0.15 crore on
total operating income of INR 3.11 crore in FY11
VEDBHUMI BUILDERS: CARE Rates INR26.95cr LT Loan at 'CARE BB-'
--------------------------------------------------------------
CARE assigns 'CARE BB-' rating to the bank facilities of Vedbhumi
Builders & Developers Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 26.95 CARE BB- Assigned
Rating Rationale
The rating assigned to the bank facilities of Vedbhumi Builders &
Developmers Pvt. Ltd. is constrained by the funding risk
associated with its ongoing real estate project, whereby the
proposed debt component is yet to be tied up and significant
proportion of customer advances yet to be received (nearly 58% of
the project is yet to be sold as on August 31, 2012). The project
execution risk along with lower booking status further constrains
the rating. Dependence on a single project coupled with
cyclicality associated with the real estate industry also act as
constraining factors for the rating.
The rating, however, does drive strength from the promoters'
experience in the real estate industry, moderate financial risk
profile of the company and low break even cost of the project.
Timely mobilization of the funds, progress in project execution
and sale of the project space as per the envisaged prices are the
key rating sensitivities.
VBD was incorporated in 2005 by Mr. Yogesh Chawda & Mr. Vijay
Pawar. VBD has primarily been involved in the residential
projects in and around the city of Nagpur. The company has
executed only one project (Bhumi Arcade), which was completed
recently in June 2012. However, the promoters have past
experience in the real estate development and have completed
residential projects, area & land development projects with a
saleable area of 1.33 lakh sq. ft. & 17.34 lakh sq. ft.,
respectively. VBD is currently undertaking a residential project
"Vatsalya Bhoomi" at Wathoda, Nagpur. The project has been
divided into two phases; Phase I (involves construction of 224
flats & 24 bungalows, commenced in Q3FY12 (refers to the period
April 01 to March 31) and to be completed by Q3FY14) with a total
saleable area of 3.88 lakh sq. ft. & Phase II (involves
construction of around 200 bungalows). The company has commenced
the construction for Phase I & details for Phase II are yet to be
finalised.
During FY12, VB reported total operating income of INR11.94
crores (vis-a-vis INR9.27 crore in FY11) and PAT of INR4.54
crores (vis-a-vis INR6.70 crore in FY11).
====================
N E W Z E A L A N D
====================
AORANGI SECURITIES: HMF Managers Reject Claims by Investor Group
----------------------------------------------------------------
Hubbard Management Funds Statutory Managers said that the
unofficial Investor Liaison Group for Hubbard Management Funds
(HMF) is misrepresenting the facts of the situation.
Grant Thornton said: "The claim that the statutory managers are
responsible for a loss of value of NZ$40 million is simply
incorrect and the real position has been made clear in our
Reports to investors.
"Despite several meetings with the Investor Liaison Group to
answer their questions and confirmation from them that they
understood what we were talking about when we met, they clearly
do not understand the situation otherwise they would not be
making these unfounded claims that will upset other investors
whom they do not represent.
"The facts are that, as at March 2010, the fair value of the
identified assets of HMF was NZ$60m not the NZ$83m reflected on
Mr. Hubbard's statements to investors. He had over stated the
value of the Fund by NZ$23m. This value is after recognition of a
loss of over NZ$4m on an investment in Southbury Group, a company
controlled by Mr Hubbard.
"Since that date a further cash shortage of NZ$6.5 million has
been identified after another related party transaction was
investigated. Additionally, a further NZ$7 million of assets are
being claimed by financiers and the Hubbard family.
"These factors total over NZ$36m and were totally outside of our
control.
"The remaining NZ$4 million (taking the total to NZ$40m)
represents a variety of market movements and costs over the
period.
"The distribution of the Funds to investors is not
straightforward. Whichever distribution option was adopted, one
group of HMF investors was going to be disadvantaged over others.
"Where the right method is not clear, the process is for the
Statutory Managers to file an application in the Courts
suggesting one of the possible methods be applied in order that
other Counsel can argue before a Judge, the merits of another
method. The Court makes the decision.
"We made submissions to the High Court for a determination on the
Personal Investment Plan (PIP) while we ensured other lawyers
submitted alternative methods that advantaged the investors they
represented. Ultimately, the PIP method was not favoured by the
Court and an alternative method is now being worked through under
the guidance of the High Court.
"For those investors who would be disadvantaged under the
methodology adopted by the court, we advised that should they
wish to appeal the ruling, they may want to seek independent
legal advice. We then provided details of several lawyers
independent of the other legal teams, one of whom was familiar
with the PIP methodology, having previously worked for the law
firm representing the Statutory Managers. Investors chose which
lawyer if any, they wanted representing them. This was a
responsible approach given we could not be part of any appeal.
"The figures on likely returns to investors referred to by the
Investor Liaison Group in their complaint to the Minister were in
fact requested by them late last year. With these figures
investors could be informed and understand the impacts of the PIP
and pooling approaches to the distribution of the funds in
advance of the court hearing last May.
"We made it clear these figures were provisional, and came with a
number of caveats noting that they were, at best indicative as
there were a number of claims by others, and the investments were
subject to market movements. To this extent only are they
inaccurate as they depend on future uncertain events.
"It is only when all investments are realised that final figures
will be made available. This may take considerable time as the
nature of some investments is long term. Our intention was to
provide the best available information to investors in an attempt
to provide transparency as to the possible impacts of a court
hearing.
The Investor Liaison Group complained about the fees for the work
on HMF. The fees for unwinding HMF are updated and provided in
each Statutory Managers' report to investors. For the sake of
transparency we requested that they are reviewed by an
independent reviewer appointed by the Ministry and include legal
and associated fees as well as our own fees. We note that Mr
Hubbard also charged fees.
"As the Statutory Managers we understand that the time to unwind
the Fund and return capital to investors is causing difficulties
for some. However, as Statutory Managers, we operate with
integrity and have a duty to act in the best interests of all HMF
investors. We are committed to returning as much of their capital
back to them as we can, as soon as we can and we will," concluded
the Statutory Managers.
About Aorangi Securities
Aorangi Securities Ltd was incorporated in 1974 and is solely
controlled by the Hubbards.
On June 20, 2010, Aorangi Securities and seven charitable trusts
were placed into statutory management, and Allan and Jean Hubbard
were also placed into statutory management as "associated
persons" of those entities. The seven charitable trusts included
in the statutory management are Te Tua, Otipua, Oxford, Regent,
Morgan, Benmore and Wai-iti. Trevor Thornton and Richard Simpson
of Grant Thornton were appointed as statutory managers.
The Temple Bar Family Trust and Barns Charitable Trust were also
put into statutory management in September 2010 on recommendation
from the Securities Commission. Hubbard Churcher Trust
Management and Forresters Nominees Company were also added to the
list of businesses under management by Trevor Thorton, Richard
Simpson and Graeme McGlinn, of Grant Thornton, on September 20,
2010.
On June 20, 2011, the Serious Fraud Office laid 50 charges under
Crimes Act against Allan Hubbard in relation to its investigation
into the affairs of Aorangi Securities Ltd; Hubbard Management
Funds; and ASL directors Allan and Margaret (Jean) Hubbard.
The SFO dropped the fraud charges against Allan Hubbard following
Mr. Hubbard's death on Sept. 2, 2011. Mrs. Hubbard was also
removed from statutory management, effective on Nov. 13, 2011.
Aorangi's statutory managers said 400 investors in the mortgage
lender owed NZ$96 million were likely to face a substantial
shortfall as many loans were in default. So far, statutory
managers have paid just 12 cents in the dollar, The Timaru Herald
reports.
AORANGI SECURITIES: Statutory Managers Clarify Actions
------------------------------------------------------
The unofficial Investor Liaison Group has failed to understand
the situation with Aorangi Securities, despite many meetings with
them to answer their questions, said the Statutory Managers for
Aorangi Securities on November 6.
Grant Thornton said: "The main misunderstanding is over the
status of the NZ$60 million of Aorangi assets which Mrs. Hubbard
is now seeking to claim as her own. If Mrs Hubbard is successful
in Court next year it will deprive Aorangi investors of most of
the value of their investments.
"Mr. Hubbard first transferred these assets to Aorangi Securities
over a 12-month period in 2009 and 2010 but he failed to complete
the change of ownership from Mr. and Mrs. Hubbard's names. It's
like selling your car, but not completing the change of ownership
papers properly. Someone else now owns your car, even though it
is still registered in your name. As a result, it is the view of
the statutory managers that Aorangi Securities has beneficial
ownership of the NZ$60 million, even though the assets are in the
names of the Hubbards.
"Subsequently, Mr. Hubbard attempted to transfer those same
assets to several Trusts. The statutory managers purposefully
reversed the second transfers because in their view this
transaction was not legally valid. The assets were not the
Hubbard's to transfer to another legal entity as they were now
owned by Aorangi Securities. Mr. Hubbard's second transaction had
no legal validity. This reversal in itself does not resolve
beyond doubt the ownership of the assets worth NZ$60 million.
A court ruling around the ownership of these assets is essential
to protect investors against future claims of ownership by
others.
"The fundamental issue is that the assets owned by Aorangi
Securities are still in the names of Mr. and Mrs. Hubbard, as
they were when Mr. Hubbard made both sets of transfers.
Mr. Hubbard publicly stated that the assets belonged to Aorangi
and he had told several investors that they would receive what
they were owed before Mr. and Mrs. Hubbard and their family did.
A number of investors have provided us with correspondence from
Mr Hubbard confirming this very point.
"Since the Statutory Managers commenced proceedings to confirm
the ownership, Mrs. Hubbard has changed her mind and is now
personally contesting Aorangi's ownership of the NZ$60 million of
assets. She wants to keep the assets worth NZ$60 million. It is
this action that is causing the significant delay, including
having to find every relevant document on record.
"We accept that the realisation that some 70 boxes in storage
that contained documents of extreme importance to the case has
caused further delays, and how disappointing this is for
investors. However, this additional information is now essential
given Mrs. Hubbard is contesting the ownership of Aorangi assets.
Our assessment of the documents is that they significantly
improve Aorangi's case and the likelihood of success. We have
also identified additional assets that we now believe belong to
Aorangi Securities.
"For investor returns to be maximised, including the ownership of
the assets worth NZ$60 million, the statutory managers must win
this case. The High Court hearing is now set down for May next
year.
"The statutory managers operate with integrity and have a duty to
act in the best interests of all Aorangi investors. We are
committed to returning as much of their capital back to them as
we can. The fees for unwinding Aorangi are updated and provided
in each Statutory Managers report for investors. For the sake of
transparency we requested that they are reviewed by an
independent reviewer appointed by the government and include
legal and associated fees as well as our own fees.
"We too are frustrated that this process of unwinding Aorangi
Securities and returning monies to investors is so drawn out. We
look forward to having Mr. Hubbards stated intentions carried out
and closure for investors," concluded the statutory managers.
About Aorangi Securities
Aorangi Securities Ltd was incorporated in 1974 and is solely
controlled by the Hubbards.
On June 20, 2010, Aorangi Securities and seven charitable trusts
were placed into statutory management, and Allan and Jean Hubbard
were also placed into statutory management as "associated
persons" of those entities. The seven charitable trusts included
in the statutory management are Te Tua, Otipua, Oxford, Regent,
Morgan, Benmore and Wai-iti. Trevor Thornton and Richard Simpson
of Grant Thornton were appointed as statutory managers.
The Temple Bar Family Trust and Barns Charitable Trust were also
put into statutory management in September 2010 on recommendation
from the Securities Commission. Hubbard Churcher Trust
Management and Forresters Nominees Company were also added to the
list of businesses under management by Trevor Thorton, Richard
Simpson and Graeme McGlinn, of Grant Thornton, on September 20,
2010.
On June 20, 2011, the Serious Fraud Office laid 50 charges under
Crimes Act against Allan Hubbard in relation to its investigation
into the affairs of Aorangi Securities Ltd; Hubbard Management
Funds; and ASL directors Allan and Margaret (Jean) Hubbard.
The SFO dropped the fraud charges against Allan Hubbard following
Mr. Hubbard's death on Sept. 2, 2011. Mrs. Hubbard was also
removed from statutory management, effective on Nov. 13, 2011.
Aorangi's statutory managers said 400 investors in the mortgage
lender owed NZ$96 million were likely to face a substantial
shortfall as many loans were in default. So far, statutory
managers have paid just 12 cents in the dollar, The Timaru Herald
reports.
BRIDGECORP LTD: NZ$500,000 Reparation Waits to be Distributed
-------------------------------------------------------------
Hamish Fletcher at The New Zealand Herald reports that former
Bridgecorp Ltd chairman Bruce Davidson's NZ$500,000 reparation
payment has not been distributed by the High Court despite being
collected more than a year ago.
The report says Mr. Davidson pleaded guilty in October last year
to misleading investors and was sentenced to 9 months' home
detention, 200 hours' community work and ordered to pay
NZ$500,000 reparation.
The Herald relates that the failed finance company's chairman,
who is in his 70s, handed a cheque for that sum to the court on
the afternoon of his sentencing in Auckland. But this money --
with $350,000 paid in by fellow guilty Bridgecorp director Peter
Steigrad -- is still to be distributed.
According to the report, the Financial Markets Authority, which
brought the case against the directors, said on Friday it hoped
the issue would be "resolved shortly".
Although there is NZ$850,000 being held, it is not clear if the
money will be treated in the same way as the reparations paid by
guilty Nathans Finance directors, the Herald relays.
The Herald states that in the Nathans case, Justice Paul Heath
ordered that nearly $900,000 of reparations from three former
directors should go to the failed finance company's receivers,
PricewaterhouseCoopers.
Before the judge reached this decision, questions arose over
whether the reparations should go to those who put money into
Nathans after the company released a misleading prospectus or to
the receivers for the benefit of all investors.
While PwC made a push for the money in the Nathans case, the
Crown said the court registrar should be responsible to
distribute payments to investors.
Mr. Steigrad's lawyer, Brian Keene QC, told the Herald last week
he was not aware of any dispute over how the Bridgecorp money
should be distributed and said the principles applied in the
Nathans case appeared to be the right ones.
"If the principle's right in one case, I have some difficulty
seeing why it wouldn't be right in another," the report quotes
Mr. Keene as saying.
About Bridgecorp Ltd
Based in New Zealand, Bridgecorp Ltd. was a property development
and finance company.
Bridgecorp was placed in receivership on July 2, 2007, after
failing to pay principal due to debenture holders. John Waller
and Colin McCloy, partners at PricewaterhouseCoopers, were
appointed as receivers. Bridgecorp owes around 14,500 investors,
which liquidators estimate to approximate NZ$500 million.
Bridgecorp's nine Australian companies were also placed into
voluntary administration, owing about 100 investors about
AUD24 million (NZ$27 million).
BRIDGECORP LTD: Insolvent 18 Mos. Before Collapse, Receiver Says
----------------------------------------------------------------
The New Zealand Herald reports that Bridgecorp Ltd was insolvent
from at least February 2006 -- a year and a half before it
collapsed -- its receiver alleges in civil action against three
former directors.
According to the report, PricewaterhouseCoopers, the failed
finance firm's receiver, has filed a NZ$442 million claim against
former Bridgecorp directors Bruce Davidson, Gary Urwin and Peter
Steigrad.
The legal action is believed to be one of the biggest civil cases
in New Zealand's history, the Herald notes.
The Herald relates that PwC's statement of claim against the
directors alleges that from at least February 2006, the
liabilities of the Bridgecorp companies would have exceeded their
assets if properly recorded in financial statements.
The report notes that PwC claims the three directors breached
their duties to Bridgecorp by allowing it to carry on business
past this date.
"If the Bridgecorp companies had ceased trading from at least
February 1, 2006, they would have avoided losses to investors of
up to $442 million," the Herald quotes PwC as saying.
According to the Herald, PwC's statement of claim filed with the
High Court at Auckland alleges eight "causes of action" against
the defendants for aspects of the Bridgecorp group's operations
in New Zealand and Australia.
About Bridgecorp Ltd
Based in New Zealand, Bridgecorp Ltd. was a property development
and finance company.
Bridgecorp was placed in receivership on July 2, 2007, after
failing to pay principal due to debenture holders. John Waller
and Colin McCloy, partners at PricewaterhouseCoopers, were
appointed as receivers. Bridgecorp owes around 14,500 investors,
which liquidators estimate to approximate NZ$500 million.
Bridgecorp's nine Australian companies were also placed into
voluntary administration, owing about 100 investors about
AUD24 million (NZ$27 million).
ROSS ASSET: High Court Appoints PwC as Receivers
------------------------------------------------
The High Court has appointed PricewaterhouseCoopers partners John
Fisk and David Bridgman as Receivers and Managers to Ross Asset
Management Limited and nine other associated entities following
application by the Financial Markets Authority on November 6,
2012.
The nine other associated entities are:
* Bevis Marks Corporation Limited
* Dagger Nominees Limited
* McIntosh Asset Management Limited
* Mercury Asset Management Limited
* Ross Investment Management Limited
* Ross Unit Trusts Management Limited
* United Asset Management Limited
* Chapman Ross Trust
* Woburn Ross Trust
The Receivers and Managers have also been appointed to Mr. David
Robert Gilmore Ross personally.
Mr. Fisk says, "Our first priority will be to establish the
financial position of the Ross Group. In this regard, we will be
writing to all known investors within the next 48 hours. In
addition, the Receivers and Managers will be reporting back to
the Court in five days on initial progress and proposed further
actions.
"The Receivers and Managers have been appointed to take control
of the Group's assets and will also be responsible for preserving
client investments in conjunction with share broker First NZ
Capital.
"In the meantime, should investors or other stakeholders have any
queries, please contact us via our website, facsimile, or postal
address, or dedicated telephone message," adds Mr. Fisk.
900 Investors, NZ$439 Million in Asset Freeze
BusinessDesk reports that around 900 individual investors and an
unknown number of financial intermediaries are caught up in the
court-ordered freeze on assets managed by Wellington investment
adviser David Ross, the Wellington High Court heard Tuesday.
Appearing for the FMA, which sought the freeze in an urgent
hearing November 2, Hugh Rennie QC told the court the balance of
the accounts held by the various entities through which Ross
managed investors' funds totalled some NZ$439 million.
BusinessDesk relates that Mr. Rennie said that sum was distinct
from the value of the funds invested with Ross's boutique
investment firm, which has operated since 1989.
The report notes that Justice Jill Mallon allowed basic detail
relating tom the claims against Ross, who has recently been
recovering from surgery and uncontactable by investors or media,
but continued to ban public searches of the court file or
disclosure of any confidential information relating to the
affidavits that led to last Friday's freezing order.
According to the report, the FMA sought the initial order after
complaints from three of up to 27 investors who say their
instructions for repayment of investments had not been acted on.
Mr. Rennie said all staff working for Ross-related entities had
resigned, and that Ross was "unable to provide instructions".
Urgent work over last weekend started to determine the scale of
the issues involved, the report says.
BusinessDesk adds that the weekend inquiries had also found that
tax returns for the Ross entities involved in the freezing orders
were two years in arrears.
=================
S I N G A P O R E
=================
MARINE ACCOMM: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Singapore entered an order on Oct. 12, 2012, to
wind up Marine Accomm Pte Ltd's operations.
DBS Bank Ltd filed the petition against the company.
The company's liquidators are:
Messrs Chee Yoh Chuang
Abuthahir Abdul Gafoor
c/o Stone Forest Corporate Advisory Pte Ltd
8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
NIL-BURNS SYSTEM: Creditors Get 0.97039% Recovery on Claims
-----------------------------------------------------------
Nil-Burns System Pte Ltd declared the first and final dividend on
Oct. 15, 2012.
The company paid 0.97039% to the received claims.
The company's liquidator is:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
OREGON INVESTMENT: Court to Hear Wind-Up Application on Nov. 16
---------------------------------------------------------------
An application of Oregon Investment Pte Ltd will be heard before
the High Court of Singapore on Nov. 16, 2012, at 10:00 a.m.
Asiaciti Management Pte Ltd filed the petition against the
company on Oct. 22, 2012.
The Applicant's solicitor is:
Siva Sothi
TJ Cheng Law Corporation
23A Neil Road
Singapore 088815
PIONEER ONE: Creditors' Proofs of Debt Due Dec. 2
-------------------------------------------------
Creditors of Pioneer One Phillip Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Dec. 2, 2012, to be included in the company's dividend
distribution.
The company's liquidators are:
Bob Yap Cheng Ghee
Tay Puay Cheng
Wong Pheng Cheong Martin
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
POLY-ALLIED KNITWEAR: Creditors' Proofs of Debt Due Nov. 16
-----------------------------------------------------------
Creditors of Poly-Allied Knitwear (Pte) Limited are required to
file their proofs of debt by Nov. 16, 2012, to be included in the
company's dividend distribution.
The company's liquidator is:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
=============
V I E T N A M
=============
VINGROUP JSC: Fitch Assigns 'BB' Issuer Default Rating
------------------------------------------------------
Fitch Ratings has assigned Vietnam-based property developer
Vingroup JSC Long-Term Foreign and Local Currency Issuer Default
Ratings of 'B+' with Stable Outlook.
At the same time, the agency has assigned Vingroup a senior
unsecured rating of 'B+' and Vingroup's proposed senior unsecured
notes due in 2017 an expected 'B+(EXP)' rating, with a Recovery
Rating of 'RR4'. The proposed notes are to be issued by Vingroup
and guaranteed by most wholly-owned subsidiaries and Royal City,
which is a 98.36% subsidiary. The final rating is contingent
upon receipt of documents conforming to information already
received.
The ratings reflect Vingroup's leading market position and
established brand in the Vietnamese high-end property market
balanced by its susceptibility to volatile property development
income. The rating also reflects Vingroup's adequate liquidity
and a demonstrated track record in accessing various funding
sources, as well as its limited diversification and small scale.
Vingroup is reliant on volatile property development for much of
its cash generation but the company has established recurring
income properties mostly from retail and office spaces. The
recurring revenue base is expected to become a significant
contributor from mid-2013 with the Royal City and Times City
projects coming on line in 2013. Recurring revenue is projected
to grow to almost 30% of Vingroup's revenue by end-2014, up from
22% currently. This, together with presales commitments and
Vincom Village project sales, underpins Fitch's expectation that
Vingroup will be able to maintain sufficient liquidity in the
next 12 to 18 months, as reflected in the Stable Outlook.
Vingroup's current development project focuses on Royal City,
Times City, and Vincom Village projects. While additional pre-
sales for Royal City and Times City have been slow during 2012
the company has the capacity to defer developments and conserve
cash, and partially monetise Vincom Village project to other sub-
developers to improve its liquidity. Up to September 2012
management reported an additional 227 units sales were booked at
Vincom Village, indicating relatively active sales despite the
unfavourable property market. Demand for apartments in Hanoi and
Ho Chi Minh cities has been impacted by Vietnam's high
inflationary environment, where domestic interest rates are 12%
to 15% and credit from banks is constrained. Strong competition
to attract buyers is being reflected in lower selling prices.
Vingroup has around USD120m debt maturing in 2013 and sufficient
cash balances to meet the same. Liquidity will come under
pressure if the company fails to achieve its development sales
target in the next 24 months, particularly as its USD300m
convertible bonds put option comes due in 2014. Nevertheless,
Fitch draws considerable comfort from the company's track record
in accessing various funding sources, and its ability to
refinance.
What Could Trigger a Rating Action?
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- Material increase in external borrowings to maintain current
liquidity position
-- Downgrade of Vietnam's Country Ceiling of 'B+'
Positive rating action is not expected in the medium-term
primarily owing to Vingroup's inherent exposure to cyclical
property development and its small scale.
VINGROUP JSC: S&P Gives 'B' Corp. Credit Rating; Outlook Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to Vietnam-based real estate developer
Vingroup Joint Stock Co. The outlook is stable. "We also assigned
our 'axBB-' ASEAN regional scale rating to the company. At the
same time, we assigned our 'B' issue rating to the proposed issue
of senior unsecured notes guaranteed by most of Vingroup's wholly
owned subsidiaries and 98.36%-owned subsidiary Royal City Real
Estate Development and Investment Joint Stock Company. The rating
on the notes is subject to our review of the final issue
documents," S&P said.
"The rating reflects the weak outlook for Vingroup's property
sales and the collection risks on its outstanding receivables,"
said Standard & Poor's credit analyst Kah Ling Chan. "The rating
also reflects the company's significant debt appetite, heightened
risk tolerance on significant foreign exchange exposure, and
credit support for some of its property buyers. Vingroup's large
operating scale with a low-cost land bank, established brand name
in Vietnam, and modest, albeit growing, recurring income from
retail malls, offices, hospital, hotels, and recreational
services temper these weaknesses."
"We view the company's business risk profile as 'weak' and its
financial risk profile as 'highly leveraged,'" S&P said.
"In our opinion, the weak sales outlook reflects the challenging
conditions in the residential property market in Vietnam. The
visibility for a recovery is limited because of a relatively
subdued economic outlook and interest rates that remain high
despite being recently lowered. In addition, the industry risk
for Vietnam's real estate market is high due to volatile property
cycles and limited liquidity. Vingroup's property sales were
sluggish in the first nine months of 2012. The cancellation of
some contracted sales offset new sales. We believe some of the
US$795 million outstanding receivables will still be exposed to
default risk as Vingroup progressively completes its projects and
delivers the apartments to buyers," S&P said.
"Vingroup's financial risk profile reflects its large capital
expenditure that requires debt funding. The company has increased
its debt aggressively in 2012 to fund the construction of new
projects. In the first half of 2012, it raised US$300 million in
convertible bonds. The proposed notes will further increase
Vingroup's total borrowings, resulting in its ratio of debt to
debt plus equity rising to about 60% by the end of 2012, from 39%
at the end of 2011. The company will use the bulk of the new debt
for the development of its existing and new projects with the
balance for working capital and general corporate purposes," S&P
said.
"Vingroup's large low-cost land bank in the two major commercial
cities in Vietnam supports the rating, and should underpin the
company's good profitability over the next three to five years,
in our view. Vingroup's sizable portfolio of leasing properties
and hotels and resorts further supports the rating. On the whole,
the portfolio has several properties (including hotels) that
generate stable recurring income," S&P said.
"The stable outlook reflects our expectation that Vingroup will
have adequate liquidity and some financial flexibility to weather
a challenging property market," said Ms. Chan. "We expect the
company to receive the majority of its outstanding receivables
and believe that it will cut capital expenditure to maintain a
sufficient liquidity buffer."
"Potential upside to the rating is limited for the next 12
months. We may raise the rating if property sales improve and the
property market outlook stabilizes. This could happen if Vingroup
improves its property sales significantly in 2013 and maintains
its market position and profitability while increasing the
diversity in its leasing portfolio," S&P said.
"We could lower the rating if Vingroup's collection of
receivables is significantly lower than we expected, the property
market deteriorates, and the company's debt-funded expansion is
more aggressive than we expect," S&P said.
*********
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 ***