/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/121112.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, November 12, 2012, Vol. 15, No. 225 Headlines A U S T R A L I A ATLAS IRON: S&P Gives 'B+' Corp. Credit Rating; Outlook Stable CLASSIC INT'L: Taps Lawler Partners as Voluntary Administrators DLSHS PTY: Goes Into Liquidation * AUSTRALIA: Corporate Insolvencies Up 10% in Q1 of 2012-13 C H I N A CHINA AOYUAN: Fitch Assigns 'B+' Issuer Default Rating CHINA AOYUAN: Moody's Assigns 'B2' CFR; Outlook Stable CHINA SHEN: Receives Non-Compliance Notice from NYSE MKT COASTAL GREENLAND: S&P Raises CCR to 'B-' on Notes Redemption H O N G K O N G AFEX INTERNATIONAL: Final Meetings Set for Dec. 11 AFEX PROCUREMENT: Final Meetings Set for Dec. 11 BE SIGN: Ying and Chan Step Down as Liquidators CAMUS INVESTMENT: Commences Wind-Up Proceedings CHEWA METAL: Members' Final Meeting Set for Dec. 7 CMC MARKETS: Commences Wind-Up Proceedings FIRST CHINA: Creditors' Proofs of Debt Due Dec. 3 GRAND FORTUNE: Members' Final Meeting Set for Dec. 3 GOLD FINDING: Creditors' Proofs of Debt Due Dec. 10 JOS J.D.: Ying and Chan Step Down as Liquidators JOS M.C.L.: Ying and Chan Step Down as Liquidators HK BUDDHISM: Placed Under Voluntary Wind-Up Proceedings HK CYBERGAMES: Creditors' Proofs of Debt Due Nov. 26 HK GENERAL: Commences Wind-Up Proceedings HK TERRITORIAL: Members' Final Meeting Set for Dec. 4 KUDOS APPAREL: Chan Yui Hang Appointed as Liquidator LYNNCROFT ENTERPRISES: Members' Final Meeting Set for Dec. 3 MISHU LIMITED: Sole Member' Final Meeting Set for Dec. 3 NEC NAGANO: Shareholders' Final Meeting Set for Dec. 3 SUN VIEW: Creditors' Meeting Set for Nov. 12 I N D I A ARIHANT COAL: ICRA Rates INR60cr Fund Based Limits at '[ICRA]BB+' BHOOMI TEXTILES: ICRA Puts '[ICRA]BB' Rating on INR9.46cr Loans BRADY & MORRIS: ICRA Puts '[ICRA]B+' Rating on INR12cr Loans G.R. GUPTA: ICRA Rates INR13.25cr Loans at '[ICRA]BB' INCKAH INFRA: ICRA Assigns '[ICRA]B' Rating to INR7cr Loans KINGFISHER AIRLINES: Needs to Raise Capital by Nov. 30 LARS ENVIRO: ICRA Assigns '[ICRA]BB-' Rating to INR2cr LT Loan SATIA INDUSTRIES: ICRA Ups Rating on INR93.78cr Loan to 'B+' VINAYAK AUTO: ICRA Cuts Rating on INR7cr Loan to '[ICRA]BB' VISHAL MALLEABLES: Strained Liquidity Cues ICRA Junk Ratings ZEALTOP GRANITO: ICRA Puts '[ICRA]BB' Rating on INR43.5cr Loans J A P A N ELPIDA MEMORY: Mosaid Seeks to Sue Over DRAM Patents * JAPAN: Economy Minister Says No Bailout for Electronics Firms N E W Z E A L A N D CAPITAL + MERCHANT: Directors' Breach Not Intended, Lawyer Says * NEW ZEALAND: New Liquidators Appointed to Norris Cases RIS GROUP: Late Annual Report Prompts NZX to Suspend Firm P H I L I P P I N E S * PHILIPPINES: Fitch Rates Proposed Global Bond 2012 at 'BB+' * PHILIPPINES: Moody's Rates Peso Global Bond Issuance '(P)Ba1' * PHILIPPINES: S&P Rates Peso-Denominated Global Bond at 'BB+' - - - - - ================= A U S T R A L I A ================= ATLAS IRON: S&P Gives 'B+' Corp. Credit Rating; Outlook Stable -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term corporate credit rating to Australia-based iron ore producer Atlas Iron Ltd. The outlook is stable. "The rating on Atlas Iron reflects the company's high mineral concentration, substantial capital spending requirements, ramp-up risks, and small size and reserve life," said Standard & Poor's credit analyst Xavier Jean. "Atlas Iron's good cost position, adequate liquidity, and moderate leverage partly offset these weaknesses." The company has a "weak" business risk profile and an "aggressive" financial risk profile. "Atlas Iron's high mineral concentration to iron ore and high operating leverage make its financial performance highly sensitive to volatile iron ore prices and fluctuations in the Australian dollar foreign exchange rate. Nevertheless, the company's good cost position in the 60th percentile of the cost curve partly mitigates its mineral concentration," S&P said. "Atlas Iron's target of increasing sales to about 13.8 million tons by fiscal 2015 from about 5.6 million tons in fiscal 2012 is moderately aggressive, in our opinion. We expect Atlas Iron's scale in the global seaborne market to remain limited over the next three years even if the company reaches its growth target. High single mine concentration and contractor underperformance create potential operational risk and could result in ramp-up delays, in our view. Nevertheless, Atlas Iron's financial risk profile is only moderately sensitive to shortfalls in sales growth," S&P said. "Atlas Iron's high capital spending requirements will keep its free operating cash flows negative until fiscal 2015, in our base-case scenario. We expect the company to lower or defer capital spending to maintain its liquidity position, if iron ore prices remain weak. But this will likely affect the pace of production growth and could ultimately reduce cash flows," S&P said. "The stable outlook reflects our expectation that Atlas Iron will steadily increase its sales volumes over the next 24 months," said Mr. Jean. "We also expect the management to adopt a prudent approach to capital spending and maintain adequate liquidity if iron ore prices weaken for a prolonged period," S&P said. "We could lower the rating if delays in production or sales volumes ramp-up push Atlas Iron's debt-to-EBITDA ratio above 5x for more than 12 months. This could happen if sales volumes are less than 5.5 million tons in fiscal 2013 and less than 4 million tons over the first two quarters of fiscal 2014. We could also lower the rating if a fall in iron ore prices pushes gross profit per ton (before depreciation and amortization) below A$15 for more than 12 months or the company's capital spending is higher than we expect," S&P said. "The possibility of an upgrade is remote in the short-term given Atlas Iron's high mineral and single-mine concentration and the high sensitivity of the company's financial performance to volatile iron ore prices. Atlas Iron's low proven and probable reserve life at its producing assets is an added constraint. We could, however, raise the rating if Atlas Iron establishes a longer record of operations and production growth and substantially increases the proven and probable reserves at its producing assets," S&P said. CLASSIC INT'L: Taps Lawler Partners as Voluntary Administrators --------------------------------------------------------------- Classic International Cruises has been placed into voluntary administration. Brad Tonks and John Vouris of the Business Recovery & Insolvency team at Lawler Partners were appointed Voluntary Administrators of Classic International Cruises Pty Ltd, on Oct. 31, 2012, following a resolution passed by the company. "The Administrators understand that CIC Australia's management have been working with the owners of the cruise ship "Athena" to confirm its availability for the 2012-2013 voyages after recent reports that Athena was arrested at port and that it is currently unable to depart," the company said in a statement. "The management of CIC Australia have been in negotiations to source an alternate vessel to backup Athena in the event that it remains unavailable. A backup was found, however, CIC Australia was notified on Oct. 30, 2012, that a final agreement may not be reached because of delays prior to the scheduled departure of the cruise from Marseille, France on Nov. 12, 2012. "Upon receiving this news the management of CIC Australia sought immediate advice in relation to CIC Australia's financial affairs and placed the company into Administration. "Whilst future bookings have now been placed on hold, the Administrators intend to continue the task of sourcing a suitable vessel for the 2012-2013 cruises. "The Administrators will be providing travel agents with regular updates as further information becomes available and we encourage customers to contact their travel agents in relation to their future travel arrangements." The administrators may be reached at: Brad Tonks John Vouris Lawler Partners GPO Box 5446 Sydney NSW 2001, Australia E-mail: btonks@lawlerpartners.com.au jvouris@lawlerpartners.com.au About CIC Sydney-based Classic International Cruises is a shipping company. It operates five luxury cruise ships, most notably their flagship, the rebuilt ocean liner MS Athena. DLSHS PTY: Goes Into Liquidation -------------------------------- Mumbrella reports that Sydney-based content and social media agency DLSHS Pty has gone into liquidation owing creditors an estimated AUD5,000. Mumbrella says DLSHS has called in liquidator Murray Godfrey from RMG Partners. The company's shareholders voted on September 27 to voluntarily wind up the company. It appears to have changed its name to Forward Digital Media Agency Pacific Pty in recent days. DLSHS (pronounced Delicious) won best social media campaign at last year's AIMIA awards for its work on promoting independent film The Tunnel. * AUSTRALIA: Corporate Insolvencies Up 10% in Q1 of 2012-13 ----------------------------------------------------------- Australian Securities & Investment Commission on Nov. 9, 2012, released its insolvency statistics for the first quarter of 2012-13. The data indicates an increase in insolvency appointments, up 10% on the previous quarter, with the overall number of external administrations (EXADs) appointments remaining relatively high (2,807). Mr. Adrian Brown, ASIC Senior Executive Leader of the Insolvency Practitioners team, said that all states and territories, except for the Australian Capital Territory, experienced a rise in insolvency appointments compared to the previous quarter, although the national September quarter total was marginally below the September quarter in 2011 (2,961), the highest quarterly result according to ASIC's published data. Appointment type All EXAD appointment types increased from the previous quarter; director-initiated creditor voluntary liquidations (up 7.9%), Court liquidations (up 9.2%), receiverships (up 13%) and voluntary administrations (up 17.2%). Receivership appointments were driven by increases in the two largest states, New South Wales (up 25.4%) and Victoria (up 14.7%) while appointments in Queensland fell slightly (down 3%). Voluntary administration appointments were up in Victoria (up 19.0%) and Queensland (up 37.0%), with more moderate rises in New South Wales (up 7.8%). Regional results Most of the states and territories experienced an increase in EXAD appointments in the September 2012 quarter relative to the June 2012 quarter, with only the ACT recording a decrease (down 13.2%). New South Wales was up 11.1%, Victoria was up 2.3% , Queensland was up 9.8%, South Australia was up 28.4%, Western Australia was up 21.3%, Tasmania was up 105.3% and Northern Territory was up 57.1%. ========= C H I N A ========= CHINA AOYUAN: Fitch Assigns 'B+' Issuer Default Rating ------------------------------------------------------ Fitch Ratings has assigned China Aoyuan Property Group Limited a Long-Term Issuer Default Rating of 'B+'. The Outlook is Stable. Fitch has also assigned Aoyuan a senior unsecured debt rating of 'B+' and its proposed USD senior unsecured bonds an expected rating of 'B+(EXP)'. The notes are rated at the same level as Aoyuan's rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company. The final rating of the proposed notes is contingent upon the receipt of documents conforming to information already received. Aoyuan's ratings reflect its small size and limited geographical diversification relative to companies in the 'BB' rating category as well as its high asset turnover and low financial leverage. Over 50% of contracted sales in the first eight months of 2012 were from the Guangdong province where competition remains intense. The scale of the company's projects is also small relative to other large scale developers, affecting its flexibility to phase out sales. These limitations partly explain the company's lower margins at around 18% relative to peers. Despite the weak property market in China since mid-2011, Aoyuan achieved LTM contracted sales/gross debt of 1.07x at end-H112. Fitch believes the fast turnover, together with its focus on first-time home buyers, speeds up cash collection and helps the company ride out the difficult environment in the Chinese residential property market. In addition, the company has also relied on commercial development to boost sales during the downturn in residential property, with the former accounting for around half of contracted sales in H112. Aoyuan's leverage, as measured by net debt/adjusted inventory, was low at 6% at end-H112, and Fitch expects the ratio will remain healthy at around 30%, even after increasing debt to launch new projects. This is the main driver of the Stable Outlook. What Could Trigger A Rating Action? Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- A significant decrease in 2013 contracted sales compared with 2012 contracted sales of CNY5bn or in contracted sales/total debt below 1.0x on a sustainable basis. -- EBITDA margin in 2013 falling to below 15% -- Net debt/adjusted net inventory trending to 40% in a sustainable basis. -- Deviating from the current strategy of fast churn-out and high cash flow turnover business model Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- Successful execution of expansion strategy for the next two to three years, where business scale increases substantially, such that contracted sales increase to over CNY15bn per annum with improving profitability where EBITDA margin increases to over 25% on a sustained basis CHINA AOYUAN: Moody's Assigns 'B2' CFR; Outlook Stable ------------------------------------------------------ Moody's Investors Service has assigned a first-time B2 corporate family rating to China Aoyuan Property Group Limited. A the same time, Moody's has assigned a (P)B3 rating to its proposed senior unsecured bonds. The ratings outlook is stable. The proposed bonds will be used to primarily fund Aoyuan's land acquisitions and project development, and to refinance the company's existing indebtedness and for general corporate purposes. The provisional status of the bond rating will be removed after Aoyuan has successfully issued the bonds with satisfactory terms and conditions. Ratings Rationale "Aoyuan's B2 corporate family rating reflects its track record in property development in economically strong Guangdong province," says Kaven Tsang, a Moody's Vice President and Senior Analyst, adding, "This track record has further helped the company secure new projects in prime locations in and outside Guangdong". "Aoyuan's expansion beyond Guangdong to some extent could alleviate the risk of geographic concentration but such expansion would add execution and funding risks in the next 1-2 years. While Aoyuan has reported satisfactory sales in Shenyang this year, it has yet to establish its reputation outside Guangdong," says Tsang. "The B2 rating also considers the strength of the company's management, which has guided Aoyuan through the last two down- cycles with some access to offshore bank debt funding," says Tsang. Aoyuan's main products are mass-market residential properties which exhibit some sales resilience despite the current purchase restrictions imposed by the government. Moody's expects Aoyuan to generate annual contract sales of about RMB5 billion this year, a level which is comparable to that of mid-single-B developers. "On the other hand, the B2 corporate family rating is constrained by Aoyuan's small scale and a track record of high volatility in sales and profitability," says Tsang. Moody's expects its EBITDA margin to stay around 25% in the next 2 years as sales stabilize. EBITDA interest coverage will also stay around 2x-2.5x as its raises new debt to fund its expansion. These metrics match its B2 corporate family rating. "Aoyuan also has an adequate liquidity position as the completion of the disposal of its interest in the Chang'an Ave project in Beijing will provide additional funding of around RMB2.6 billion. This amount together with the proposed bond issuance will provide funding for the company's current expansion plan" says Tsang. Aoyuan's bond rating is notched down to B3, reflecting structural and legal subordination. The ratio of secured and subsidiary debt to total assets was around 20% as of June 2012. This ratio will likely stay above 15% in the coming 1-2 years as the company will continue to draw on onshore and/or secured bank loans to fund construction and expansion. The stable outlook reflects Moody's expectation that the company will maintain adequate liquidity in the absence of aggressive debt-funded acquisitions. Downward rating pressure could emerge if (1) Aoyuan's liquidity and operating cash flow generation is weaker than anticipated, due in turn to declining sales, or the emergence of more regulatory controls on China's property sector; (2) there is a decline in prices and profit margins which negatively affect interest coverage and financial flexibility; or (3) it engages in material debt-funded acquisitions. In such a situation, the company's balance sheet cash (including restricted and unrestricted cash) could fall below 50% of short- term debt, and/or its credit metrics could deteriorate, showing an EBITDA margin below 15%; EBITDA/interest below 1.5x; or adjusted debt/capitalization above 55% on a sustained basis. Upward rating pressure could emerge over the medium term if Aoyuan establishes a track record in: (1) achieving planned sales over the next 1-2 years; (2) maintaining a reasonable cash balance above RMB2.5-3.0 billion; and (3) demonstrating strong financial discipline, such that its EBITDA margins exceed 30%, EBITDA/interest exceeds 3x-3.5x, and adjusted debt capitalization falls below 40-45% on a sustained basis. The principal methodology used in rating China Aoyuan Property Group Limited was the Global Homebuilding Industry Methodology published in March 2009. Founded in 1997 and listed in October 2007, China Aoyuan Property Group Limited is a property developer operating in China with 28 projects in Guangdong, Guangxi, Jiangxi, Liaoning Jiangsu, Hunan, and Chongqing. Its total land bank amounts to 8.8 million sqm (including partly owned projects, but excluding land without title documents) of gross floor area as of June 2012. CHINA SHEN: Receives Non-Compliance Notice from NYSE MKT -------------------------------------------------------- China Shen Zhou Mining & Resources, Inc. received a letter from the NYSE MKT LLC advising that the Company currently is below certain of the Exchange's continued listing standards. The Exchange indicated that its review of the Company's Form 10-Q for the quarter ended June 30, 2012, indicates that the Company is not in compliance with Section 1003(a)(iv), which applies if a listed company has sustained losses that are substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether the company will be able to continue operations and/or meet its obligations as they mature. The Company is afforded the opportunity to submit a plan of compliance to the Exchange by Nov. 30, 2012 that demonstrates the Company's ability to regain compliance with Section 1003(a)(iv) of the Company Guide by April 24, 2013. If the Company does not submit a plan of compliance, or if the plan is not accepted by the Exchange, the Company will be subject to delisting procedures as set forth in Section 1010 and Part 12 of the Company Guide. The Company believes it can provide the Exchange with a satisfactory plan by November 30, 2012, to show that it will be able to return to compliance with Section 1003(a)(iv) of the Company Guide. About China Shen Zhou China Shen Zhou Mining & Resources, Inc., -- http://www.chinaszmg.com/-- through its subsidiaries, is engaged in the exploration, development, mining, and processing of fluorite. COASTAL GREENLAND: S&P Raises CCR to 'B-' on Notes Redemption ------------------------------------------------------------- Standard & Poor's Ratings Services raised the long-term corporate credit rating on China-based real estate developer Coastal Greenland Ltd. to 'B-' from 'CCC+'. The outlook is negative. "We also raised the long-term Greater China regional scale rating on the company to 'cnB-' from 'cnCCC+'. At the same time, we withdrew the 'CCC' issue rating and 'cnCCC' Greater China regional scale rating on Coastal Greenland's senior unsecured notes after the company fully redeemed them on Nov. 8, 2012," S&P said. "We raised the ratings to reflect our view that Coastal Greenland no longer faces immediate and significant repayment risk on its offshore bond and its large trust loans due by the end of 2012," said Standard & Poor's credit analyst Frank Lu. "The company has raised funds from asset sales, private investors, and trust lenders to meet the repayment of these debt obligations. The company's refinancing needs appear to have passed the peak. We have revised our assessment of Coastal Greenland's liquidity to 'less than adequate' from 'weak,' as our criteria define those terms. The revision reflects our view that the company has just sufficient liquidity to meet its obligations. We continue to view Coastal Greenland's business risk profile as 'vulnerable' and its financial risk profile as 'highly leveraged,'" S&P said. "Coastal Greenland's refinancing capacity has increased due to improving credit conditions. The company repaid US$129 million in senior unsecured notes on their maturity using proceeds from a US$60 million offshore loan from a private investor and new onshore trust financing. We also expect the company to repay a RMB500 million trust loan maturing at the end of November 2012 by using proceeds from asset sales or new trust loans. The company's new financing has higher costs, which could put further pressure on its cash flows," S&P said. "We estimate that Coastal Greenland's liquidity sources have widened to cover liquidity uses by about 1.0x over the next year, compared with about 0.8x three months ago. The company's liquidity position is dependent on asset sales as property sales remain weak. Recent asset sales include that of an equity interest in an associate company for RMB452.4 million and an asset swap with its second-largest shareholder, Shenzhen Investment Ltd. (not rated) with net proceeds of RMB335 million. We expect the company to sell several other projects, as and when needed, to support liquidity. We expect approval from shareholders for the asset swap this month," S&P said. "Coastal Greenland's property sales are likely to remain weak in the next six to 12 months even though property market conditions are stabilizing in China. This is because the company has a limited number of projects, a shrinking portfolio due to asset sales, and high concentration in cities with purchase restrictions. In our base-case scenario, we estimate contracted property sales at about Hong Kong dollar (HK$) 4.0 billion for fiscal 2013 (ending March 2013). From April-October 2012, Coastal Greenland generated sales of about HK$2.0 billion. Due to its shrinking portfolio of projects, we are unclear if the company can sustain this level of property sales after 2013," S&P said. "We anticipate that Coastal Greenland's leverage will remain high and its cash flow will be weak over the next year, mainly because poor property sales and high financing costs more than offset modestly lower total borrowings by the end of fiscal 2013," S&P said. "To refinance its debt maturities, Coastal Greenland has secured trust loans and offshore loans at higher interest rates than those for its existing loans, highlighting its weak credit profile and limited financial flexibility. In our base case, we estimate the company's adjusted debt to EBITDA ratio at about 8.0x (2012: 3.2x ) and EBITDA interest coverage at about 1.0x (2012: 3.5x) for fiscal 2013. The deterioration is mainly attributable to a large amount of back-loaded recognition in fiscal 2012 of properties sold over a year ago," S&P said. "The negative outlook reflects our view that the company's cash flows will likely remain weak and its liquidity depends on the timely completion of asset sales. The outlook also reflects our uncertainty about the company's ability to maintain its market position as it shrinks its portfolio of projects," said Mr. Lu. "We could lower the rating if the company's property sales and cash holdings are materially weaker than we expected. This could happen if property sales are less than HK$3.0 billion in fiscal 2013 and EBITDA interest coverage is less than 1.0x. We could also downgrade the company if we believe that its ability to refinance its borrowings is curtailed or generally its liquidity is not sufficient to meet short-term obligations," S&P said. "We could revise the outlook to stable if the company improves and sustains its property sales, and reduces its borrowings," S&P said. ================ H O N G K O N G ================ AFEX INTERNATIONAL: Final Meetings Set for Dec. 11 -------------------------------------------------- Members and creditors of AFEX International (HK) Limited will hold their final meetings on Dec. 11, 2012, at 2:30 p.m., and 2:45 p.m., respectively at Unit A, 14/F, JCG Building, 16 Mongkok Road, Mongkok, Kowloon, in Hong Kong. At the meeting, Ng Kwok Wai and Lui Chi Kit, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. AFEX PROCUREMENT: Final Meetings Set for Dec. 11 ------------------------------------------------ Members and creditors of AFEX Procurement Company Limited will hold their final meetings on Dec. 11, 2012, at 3:15 p.m., and 3:30 p.m., respectively at Unit A, 14/F, JCG Building, 16 Mongkok Road, Mongkok, Kowloon, in Hong Kong. At the meeting, Ng Kwok Wai and Lui Chi Kit, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. BE SIGN: Ying and Chan Step Down as Liquidators ----------------------------------------------- Ying Hing Chiu and Chan Mi Har stepped down as liquidators of Be Sign Media Limited on Oct. 24, 2012. CAMUS INVESTMENT: Commences Wind-Up Proceedings ----------------------------------------------- Members of Camus Investment Limited, on Oct. 31, 2012, passed a resolution to voluntarily wind-up the company's operations. The company's liquidator is: Lee King Yue 72-76/F, Two International Finance Centre 8 Finance Street Central, Hong Kong CHEWA METAL: Members' Final Meeting Set for Dec. 7 -------------------------------------------------- Members of Chewa Metal Works Limited will hold their final meeting on Dec. 7, 2012, at 9:00 a.m., at Unit 201, 2/F, Malaysia Building, at 50 Gloucester Road, Wanchai, in Hong Kong. At the meeting, Chiu Wai Hon, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CMC MARKETS: Commences Wind-Up Proceedings ------------------------------------------ Members of CMC Markets Asia Limited, on Oct. 26, 2012, passed a resolution to voluntarily wind-up the company's operations. The company's liquidators are: John Chi Wai Wong Lay Hong Tan 21/F, Edinburgh Tower The Landmark 15 Queen's Road Central, Hong Kong FIRST CHINA: Creditors' Proofs of Debt Due Dec. 3 ------------------------------------------------- Creditors of First China Property Group Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Dec. 3, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 19, 2012. The company's liquidator is: Sy Mei Ling 36/F, Tower Two Times Square, 1 Matheson Street Causeway Bay, Hong Kong GRAND FORTUNE: Members' Final Meeting Set for Dec. 3 ---------------------------------------------------- Members of Grand Fortune House Limited will hold their final general meeting on Dec. 3, 2012, at 10:30 a.m., at 230 Victoria Street, #12-08 Bugis Junction Towers, in Singapore 188024. At the meeting, Chan Wai Hei, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GOLD FINDING: Creditors' Proofs of Debt Due Dec. 10 --------------------------------------------------- Creditors of Gold Finding Investment Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Dec. 10, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 25, 2012. The company's liquidator is: Zhuo Shuijia Room 803, Tung Hip Commercial Building 248 Des Voeux Road Central, Hong Kong JOS J.D.: Ying and Chan Step Down as Liquidators ------------------------------------------------ Ying Hing Chiu and Chan Mi Har stepped down as liquidators of Jos J.D. Edwards (HK) Limited on Oct. 24, 2012. JOS M.C.L.: Ying and Chan Step Down as Liquidators -------------------------------------------------- Ying Hing Chiu and Chan Mi Har stepped down as liquidators of Jos M.C.L. Engineering Limited on Oct. 24, 2012. HK BUDDHISM: Placed Under Voluntary Wind-Up Proceedings ------------------------------------------------------- At an extraordinary general meeting held on Oct. 25, 2012, creditors of Hong Kong Buddhism Study and Research Association Limited resolved to voluntarily wind up the company's operations. The company's liquidator is Luk Wing Yee. HK CYBERGAMES: Creditors' Proofs of Debt Due Nov. 26 ---------------------------------------------------- Creditors of Hong Kong Cybergames Organization Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Nov. 26, 2012, to be included in the company's dividend distribution. The company's liquidator is: Lau Wai Yung Alice Room 2402, 24/F 101 King's Road Fortress Hill, Hong Kong HK GENERAL: Commences Wind-Up Proceedings ----------------------------------------- Members of Hong Kong General Association of Construction Machinery Limited, on Oct. 26, 2012, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Yang Tse Yung Chan Tsi Chuen Room 905-906, 9/F Houston Centre, 63 Mody Road Tsim Sha Tsui, Kowloon Hong Kong HK TERRITORIAL: Members' Final Meeting Set for Dec. 4 ----------------------------------------------------- Members of Hong Kong Territorial Trades Limited will hold their final meeting on Dec. 4, 2012, at 10:00 a.m., at Room C, 2nd Floor, Wing Tat Commercial Building, at 121-125 Wing Lok Street, Central, in Hong Kong. At the meeting, Choi Wai Lung Edward, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KUDOS APPAREL: Chan Yui Hang Appointed as Liquidator ---------------------------------------------------- Chan Yui Hang on Oct. 17, 2012, was appointed as liquidator of Kudos Apparel Limited. The liquidator may be reached at: Chan Yui Hang Room 512, 5/F New Mandarin Plaza Tower B 14 Science Museum Road Tsimshatsui East Kowloon, Hong Kong LYNNCROFT ENTERPRISES: Members' Final Meeting Set for Dec. 3 ------------------------------------------------------------ Members of Lynncroft Enterprises Company Limited will hold their final meeting on Dec. 3, 2012, at 10:00 a.m., at Unit 402, 4/F, Malaysia Building, at No. 50, Gloucester Road, Wanchai, in Hong Kong. At the meeting, Chan Chi Bor and Li Fat Chung, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. MISHU LIMITED: Sole Member' Final Meeting Set for Dec. 3 -------------------------------------------------------- Sole Member of Mishu Limited will hold their final meeting on Dec. 3, 2012, at 10:00 a.m., at 8th Floor, Gloucester Tower, The Landmark, at 15 Queen's Road Central, in Hong Kong. At the meeting, Thomas Andrew Corkhill, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEC NAGANO: Shareholders' Final Meeting Set for Dec. 3 ------------------------------------------------------ Shareholders of NEC Nagano Karrie Electronics Limited will hold their final meeting on Dec. 3, 2012, at 2:30 p.m., at the office, 25/F, Tower One, Tern Centre, at 237-251 Queen's Road Central, in Hong Kong. At the meeting, Li Wai See, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SUN VIEW: Creditors' Meeting Set for Nov. 12 -------------------------------------------- Creditors of Sun View Far East Limited will hold a meeting on Nov. 12, 2012, at 12:00 p.m., at Unit 1702-1703, 17/F, H.K. Worsted Mills Ind. Building, 31-39 Wo Tong Tsui Street, Kwai Chung, New Territories, in Hong Kong. At the meeting, Suen Man Fai, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= ARIHANT COAL: ICRA Rates INR60cr Fund Based Limits at '[ICRA]BB+' ----------------------------------------------------------------- ICRA has assigned a rating of '[ICRA]BB+' to the INR60.0 crore fund based facilities of Arihant Coal Sales (India) Private Limited. ICRA has also assigned a short term rating of '[ICRA]A4+' to the INR90.0 crore non fund based facilities of ACPL. The outlook on the long term rating is 'Stable' Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund Based limits 60.0 [ICRA]BB+ assigned Non Fund Based limits 90.00 [ICRA]A4+ assigned The rating is constrained by ACPL's vulnerability to risks inherent in commodity trading business which includes inter-alia price variation risks (as purchases and sales are to a great extent not on a back to back basis), foreign exchange fluctuation risks (as only a small part of the foreign currency exposure is hedged) and counterparty credit risks arising out of its exposure to a large number of relatively small customers with modest credit strengths. The ratings also factor in ACPL's modest financial risk profile as reflected by relatively high dependence on outside funds (Total outside Liabilities net of cash/TNW stands at 7.35 times as on March 2012) and modest debt coverage indicators. Further, high turnover growth coupled with relatively high working capital intensity has also resulted in negative cash generation from operations. Nevertheless, the ratings derive comfort from ACPL's established market position as a coal supplier in the domestic market arising from its long-standing presence in coal trading operations and favorable demand prospects for coal trading given the increasing coal demand- supply gap in the domestic market. Going forward, ACSPL's ability to report satisfactory coal trading volumes by optimally utilising its working capital limits and its ability to maintain adequate margins by managing risk factors which are inherent in the trading business will be the key rating sensitivities. About Arihant Coal Arihant Coal Sales (I) Private Limited was promoted by Mr. Anil Kumar Jain in October 2003. The company is engaged in coal trading business and procures coal from the domestic market through e-auctions conducted by Metal Junction Service Limited and Metal & Scrap Trading Corporation Limited, auction agents of Coal India Limited (CIL), as well as imports from Indonesia. At present, the company has stockyards facilities at Bhopal and Katni (Madhya Pradesh), Bilaspur (Chhattisgarh), Nagpur and Vani (Maharashtra) and Kota (Rajasthan). Recent results ACPL reported a profit after tax (PAT) of INR3.42 crores on an operating income of INR241.30 crores in FY 2011-12 as against PAT of INR2.8 crores on an operating income of INR119.45 crores in FY 2010-11. BHOOMI TEXTILES: ICRA Puts '[ICRA]BB' Rating on INR9.46cr Loans --------------------------------------------------------------- A rating of '[ICRA]BB' has been assigned to the INR9.46 crore long-term, fund based facilities of Bhoomi Textiles. A rating of '[ICRA]A4' has also been assigned to the INR1.00 crore short term non fund based facility of Bhoomi. The outlook on the long term rating is Stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loans 4.46 [ICRA]BB(Stable) assigned Cash Credit 5.00 [ICRA]BB(Stable) assigned Non Fund Based-Letter 1.00 [ICRA]A4 assigned of credit The assigned rating is constrained by Bhoomi's small scale of operations; fragmented nature of fabric processing industry resulting in intense competition from small unorganised as well as large organised players; leveraged capital structure and vulnerability of profitability to adverse fluctuations in prices of key raw materials. Further, Bhoomi is a partnership concern and any significant withdrawals from the capital account would impact the net worth and thereby the capital structure. The rating, however, favorably factors in the extensive experience of partners and long track record of the firm in textile industry; favorable location of the firm's processing unit in Ahmedabad in proximity to raw material suppliers; forward linkages with associate concern which ensures steady order flow for the firm. The rating also positively factors in the healthy operating profitability and satisfactory coverage and return indicators. Incorporated in the year 1986, Bhoomi Textiles is engaged in the processing of knitted fabrics on job work basis. The processing unit of the firm is located in Ahmedabad with a processing capacity of 115 MT per month of knitted fabric. The firm holds certification from Global Organic Textile Standard for processing fabrics made from Organic Cotton. Bhoomi is a family owned partnership firm and is managed by three partners - Mr. Yugesh Shah, Mr. Shirish Shah and Mr. Niraj Shah. The firm has one associate concern namely Raj Exports, which is an exporter of knitted garments and is also managed by the same partners. Recent Results For the year ended March 31, 2012 the firm reported an operating income of INR22.89 crore and profit after tax of INR0.69 crore as against an operating income of INR20.35 crore and profit after tax of INR0.29 crore for the financial year 2010-11. BRADY & MORRIS: ICRA Puts '[ICRA]B+' Rating on INR12cr Loans ------------------------------------------------------------ ICRA has assigned an '[ICRA]B+' rating to the INR6.00 crore long- term fund-based bank facilities of Brady & Morris Engineering Company Limited. ICRA has also assigned an '[ICRA]A4' rating to the INR8.00 crore short-term non-fund-based bank facilities of BMECL In addition, ICRA has also assigned an [ICRA]B+/[ICRA]A4 rating to INR6.00 crore unallocated bank limits of BMECL. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Long-term fund-based limits 6.00 [ICRA]B+ assigned Short-term non-fund based limits 8.00 [ICRA]A4 assigned Unallocated limits 6.00 [ICRA]B+/ICRA]A4 Assigned For the purpose of arriving at the rating, ICRA has factored in the business risk profiles of the Brady group of companies, comprising W.H. Brady & Company Limited (rated [ICRA]B+) and Brady & Morris Engineering Company Limited in view of significant cross holdings and operational linkages among the two group companies. The ratings take into account long experience of promoter in manufacture and sale of material handling equipment (MHE); the established market presence of the group and significant lease rental income, at group level, which provides liquidity support. However, the ratings are constrained by loss making operation of the company during last 2 years, adverse financial risk profile, with a high gearing, weak coverage indicators and high working capital intensity of operations due to high receivable and inventory levels; highly competitive nature of material handling equipment industry, which leads to thin margins; fixed price nature of contracts, which exposes the company to margin risks due to cost escalations; small scale of operations and limited bargaining capacity of the company against large customers. W.H. Brady and Company Limited established Brady & Morris Engineering Company Limited in 1946 for manufacture and sale of material handling equipment like chain pulley blocks and various types of cranes and electric hoist block. Originally started in 1895 by two individuals of British origin, and later incorporated in 1913, WHBCL is involved in sales of material handling equipment and sales and servicing of various products related to aviation industry. WHBCL also own Brady House located at Fort, Mumbai, from where it receives significant rental income. The group is controlled by Mumbai based Morarka family since 1960s. BMECL has manufacturing facility at Vatva and Bareja, both located in Gujarat. Recent Results In 2011-12, BMECL reported a net loss of INR2.84 crore on an operating income of INR34.45 crore as compared to a net loss of INR3.02 crore on an operating income of INR27.44 crore in 2010- 11. G.R. GUPTA: ICRA Rates INR13.25cr Loans at '[ICRA]BB' ----------------------------------------------------- ICRA has reaffirmed '[ICRA]BB' rating assigned to the INR13.25 crores fund-based bank facilities of G.R. Gupta & Brothers. The outlook on the long term rating is Stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund Based limits 13.25 [ICRA]BB (Stable) The rating reaffirmation takes into account intensely competitive and fragmented nature of the industry which exerts pressure on GRGB's margins and firm's susceptibility to adverse movements in raw material prices although this risk is partly mitigated by booking back to back orders by the firm. Further, the rating also factors in the weak financial profile of the firm as characterized by moderate scale of operations and low profitability which coupled with high gearing has resulted in weak debt protection indicators. Nevertheless, the rating continues to derive comfort from the long track record of promoters in steel industry, authorized distributorship of Tata Steel which provides visibility to its operations and support from Tata Steel in terms of marketing initiatives and rebates and diversified customer profile of the firm. G.R. Gupta & Bros., set up in 1970 as a partnership firm, is mainly into distribution of CR coils and sheets which constitutes 90% of total sales. The firm also trades in a small portion of other iron and steel products like structurals, flats. As the firm is an authorized distributor of "Tata Steelium" product under Tata Steel Limited, most of the raw materials are supplied by Tata Steel's Jamshedpur plant. The authorized distributorship with Tata Steel Ltd. provides visibility to its operations as is reflected in the healthy customer base of the firm in Delhi NCR and marketing support provided by Tata Steel. . However, notwithstanding this strength, the firm has to maintain minimum inventory levels as per the distributorship agreement which exposes the firm to price fluctuation risk given the cyclicality inherent in the steel business. The firm caters to a number of industries mainly being automobile, electronics, and re-rolling mills and has a diversified base of customers in Delhi, Haryana and Western U.P. region with top ten customers contributing to around 25% of overall sales of the firm. The operating income of the company has shown a declining trend as the total quantity sold for CR coils has remained the same however over the years the company has reduced its focus of trading of other steel products which had led to reduction in total sales volumes. As the nature of business is distribution, operating margins are in the range of 2.5-3% and PAT margins less than 1%. However, return indicators are healthy on account of significantly low fixed capital intensity of business. About G.R. Gupta G.R. Gupta & Bros. was incorporated in 1970 as a partnership firm by Mr. G.R. Gupta and Brothers and the firm started with business of iron and steel trading mainly in Delhi NCR region. The partners of GRGB include Mr. Rakesh Gupta (33.3% shareholding), Mr. Sanjay Gupta (33.3% shareholding) and the mother of Mr. Rakesh and Sanjay Gupta, Mrs. Mohindru Gupta (33.3% shareholding). The firm is an authorized distributor of "Tata Steelium" CR sheets and coils of Tata Steel Limited. Another group company G.R. Steels Pvt Limited has been incorporated recently to provide warehousing and steel processing facilities to iron and steel traders in Delhi NCR. In FY 2012, the company reported PAT of INR1.02 crores on an operating income of INR149.72 crores as compared to PAT of INR1.14 crores and operating income of INR131.92 crores in FY 2011. INCKAH INFRA: ICRA Assigns '[ICRA]B' Rating to INR7cr Loans ----------------------------------------------------------- ICRA has assigned the long-term rating of '[ICRA]B' to the INR0.5 crore1 term loans, INR3.0 crore fund based limits, and INR3.5 crore non-fund based limits of Inckah Infrastructure Technologies (P) Ltd. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loans 0.5 [ICRA]B; Assigned Fund Based Limits 3.0 [ICRA]B; Assigned Non-fund based Limits 3.5 [ICRA]B; Assigned The ratings of IITPL factor in its modest scale of operations, leveraged capital structure, and high competitive intensity in the road construction which renders modest profitability. The ratings also take into account limited revenue visibility due to its relatively short duration contracts, and exposure of profitability to adverse movement in raw-material prices. The ratings, however, take comfort from experience and track record of the company in the road construction business particularly resurfacing of roads, its reputed client profile, and significant opportunities in the road construction space. The rating also positively factors in the relatively lower execution risk due to shorter project execution cycle and low complexity of the work involved. Going forward, the funding requirements of the company are expected to increase to support its growth. The company's ability to execute projects in a timely manner, improve its profitability and capital structure will be the key rating sensitivity factors. Incorporated in 2004, IITPL is promoted by Shri D. P. Vashist and is engaged in road construction business particularly resurfacing of roads and road maintenance. Recent Results In FY2012, IITPL had operating income of INR16.75 crore on which it earned a net profit after tax (PAT) of INR0.4 crore compared to operating income of INR11.89 crore and PAT of INR0.25 crore in FY2011. KINGFISHER AIRLINES: Needs to Raise Capital by Nov. 30 ------------------------------------------------------ Anirban Chowdhury at Dow Jones' DBR Small Cap reports that Banks for Kingfisher Airlines Ltd. have asked the cash-strapped Indian carrier to raise capital by Nov. 30, its biggest lender said. 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 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. LARS ENVIRO: ICRA Assigns '[ICRA]BB-' Rating to INR2cr LT Loan -------------------------------------------------------------- ICRA has assigned a long-term rating of '[ICRA]BB-' to the INR2.00 crore1 fund-based working capital facilities of Lars Enviro Private Limited. ICRA has also assigned a short-term rating of '[ICRA]A4' to the INR5.50 crore short-term, non-fund based limits of the company. The long term rating carries a stable outlook. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Long-term, fund-based 2.00 [ICRA]BB-(Stable) working capital facilities assigned Short-term, non-fund based 5.50 [ICRA]A4 assigned working capital facilities The ratings take into account the experience of the promoters in waste water treatment and engineering business and strong return indicators given healthy value addition in business and low capital intensive nature of operations. The ratings, however, are constrained by LEPL's small scale of operations, stretched working capital position on account of an elongated receivable cycle, primarily arising from long execution cycle, along with low bargaining power with customers and exposure to seasonal/ cyclical trends of user industries. The rating also factors in the vulnerability of margins to movements in foreign exchange rates. Lars Enviro Private Limited is engaged in the designing, engineering, fabrication, erection and commissioning of effluent treatment plants. The company was incorporated in 1997 by Mr. B.L.Vaswani who has over 28 years of experience in this field. Situated in Nagpur, the company specializes in the treatment of industrial waste water through biological methods and caters to a diverse set of industries. The company has employee strength of 70 personnel, consisting primarily of environmental, chemical, mechanical and civil engineers. Recent Results LEPL reported a profit after tax (PAT) of INR0.95 crore on an operating income of INR29.74 crore in FY2012, as against a net profit of INR0.83 crore on an operating income of INR24.04 crore in FY2011. SATIA INDUSTRIES: ICRA Ups Rating on INR93.78cr Loan to 'B+' ------------------------------------------------------------ ICRA has upgraded the long term rating from '[ICRA]B-' to '[ICRA]B+' and reaffirmed the short term rating at '[ICRA]A4' for the INR120.0 Crore (reduced from INR160.0 Crore) bank limits of Satia Industries Limited. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loan 52.78 Revised to [ICRA]B+ Fund Based Working 41.00 Revised to [ICRA]B+ Capital Limits Non Fund Based Working 17.50 Reaffirmed at Capital Limits [ICRA]A4 Unallocated Limits 8.72 Revised to [ICRA]B+/ Reaffirmed at [ICRA]A4 The rating upgrade reflects the improvement in financial risk profile and debt servicing track record of the company. The ratings, however, continue to be constrained by fragmentation and high competitive intensity in the paper industry with the presence of a large number of manufacturers; vulnerability of profitability to cyclicality inherent in the industry; moderately weak debt coverage indicators as a result of low profitability and debt funded capacity expansion and tight liquidity position which has resulted in high working capital limits utilization levels. Nevertheless, while assigning the ratings, ICRA has favorably factored in the long track record of the promoters in printing and writing paper business; consistently healthy plant capacity utilization levels; favorable location of the manufacturing facility in the agricultural belt of Punjab, which ensures easy access to raw materials; operational competitiveness of the company due to captive power generation and chemical recovery facilities which aid in reducing the power and chemical cost respectively and favorable demand outlook from the education sector. Satia Industries Ltd., SIL (formerly, Satia Paper Mills Ltd) was incorporated in 1980. SIL manufactures printing and writing paper and has a capacity of 40,000 MTPA. The company has a fully integrated paper mill, with a pulping facility based on agricultural residue and a chemical recovery plant. The company also has captive power plants with generation capacity of 10MW and scheduled to commission multi fuel based power plant from November 2012. Recent Results SIL reported net sales of INR239.25 Crore and a net profit of INR3.99 Crore during financial year 2011-12. The company had reported net sales of INR320.40 Crore and a net profit of INR5.44 Crore during 2010-11. VINAYAK AUTO: ICRA Cuts Rating on INR7cr Loan to '[ICRA]BB' ----------------------------------------------------------- ICRA has revised the INR7.0 Crore long term bank facilities of Vinayak Auto link Private Limited from '[ICRA]BB+' to '[ICRA]BB'. The long term rating has been assigned a 'Stable' outlook. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Cash Credit 7.0 Ratings revised to [ICRA]BB(Stable) from [ICRA]BB+ (Stable) The rating downgrade takes into account sharp decline in scale of operations which coupled with thin profit margin and high debt levels has resulted in deterioration of coverage indicators. The rating continues to factor in the company's position as the only dealership of Ford India Limited in Indore and the support from promoters for expanding equity base. The ability of VAPL to register growth in its operating revenues amid the increasing competitive intensity in its area of operation given weak demand outlook for passenger cars in the short term as well as manage its working capital intensity and liquidity would remain key rating sensitivities going forward. Vinayak Autolink Private Limited was incorporated in 2008 and has been operating as an authorized dealer for vehicles of Ford India Limited in Indore, Madhya Pradesh since its inception. The company deals in sale of new cars, repair and servicing of cars, buying-refurbishing and sale of old cars. The day to day management of the company is taken care by Sh. Santosh Korde with support from the promoters. VAPL is the only authorized dealer of Ford India Limited in Indore and one of the five dealers in Madhya Pradesh. Currently, the company owns one sale showroom and two service workshop in Indore.in addition to this, VAPL had recently opened up a new showroom in Sagar. Recent Results In 2011-12, VAPL recorded an operating income of INR77.5 Crore. The company's operating profit before depreciation, interest and tax stood at INR3.7 Crore. The company recorded a profit of INR1.1 Crore at net profit level. VISHAL MALLEABLES: Strained Liquidity Cues ICRA Junk Ratings ------------------------------------------------------------ ICRA has revised the long term rating assigned to the INR21.49 crore long term fund based facilities of Vishal Malleables Limited to '[ICRA]D' from '[ICRA]B'. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund Based-Cash Credit 9.25 Revised to [ICRA]D from [ICRA]B Fund Based-Term Loan 12.24 Revised to [ICRA]D from [ICRA]B The rating action takes into account the strained liquidity position of the company as exhibited by delays in meeting its principal repayment and interest payment obligations to the bank. The same is attributable to significant delay of around 6-7 months in completing the automation of the manufacturing facility and to slowdown in demand resulting in stress on operational and financial performance. Vishal Malleables Limited, incorporated in 1974, is involved in manufacturing of ductile iron (S.G. iron) castings and auto components with its plant located at Ankleshwar, Gujarat. Currently the plant has an installed capacity of 12000 MTPA. The company also owns a windmill with installed capacity of 2.0 MW. The company is listed at Bombay Stock Exchange and Vadodara Stock Exchange. Recent Results The company reported operating income of INR66.63 crore and net loss of INR1.48 crore in FY 2012 as against operating income of INR71.22 crore and net profit of INR0.31 core in FY 2011. ZEALTOP GRANITO: ICRA Puts '[ICRA]BB' Rating on INR43.5cr Loans --------------------------------------------------------------- A rating of '[ICRA]BB' has been assigned to INR27.50 crore term loan and INR16.00 crore cash credit facility of Zealtop Granito Private Limited. A rating of '[ICRA]A4' has also been assigned to INR6.37 crore non-fund based facilities of ZGPL. The outlook on the long term rating is stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Cash Credit 16.00 [ICRA]BB (Stable) assigned Term Loan 27.50 [ICRA]BB(Stable) assigned Bank Guarantee 6.15 [ICRA]A4 assigned CEL 0.22 [ICRA]A4 assigned The ratings are constrained by moderate financial risk profile of the company as reflected in the highly leveraged capital structure, low profitability and moderate coverage indicators. The ratings also takes into account the high competitive intensity in ceramic tiles industry with a presence of large established organized as well as a number of unorganized players; vulnerability of ZGPL's profitability to increasing gas and power costs; and the cyclicality associated with the real estate industry. The ratings however favorably consider the extensive experience of the promoters in the ceramic industry and the healthy growth in revenues supported by supply contracts with larger ceramic industry players. The ratings also factor in ZGPL's product portfolio consisting of high end vitrified tiles segments enabling higher realizations and stable demand for vitrified tiles in the domestic market. Zealtop Granito Private Limited was incorporated in January 2008 to manufacture vitrified tiles. The company has its production facilities at Morbi, Gujarat with a total manufacturing capacity of 378000 boxes per month. ZGPL currently manufactures vitrified tiles of size 600 mm X 600 mm, 800 mm X 800 mm. The company manufactures various types of tiles viz.Soluble Salt, Nano Finishing, Multi Charge, Glazed Vitrified Tiles etc. The tiles are marketed under its own brand name 'Zealtop'. Recent Results During 6MFY 2012, ZGPL reported an operating income of INR60.08 crore and profit after tax of INR2.02 crore (provisional unaudited financials) as against operating income of INR108.16 crore and profit after tax of INR2.86 crore during FY 2011. ========= J A P A N ========= ELPIDA MEMORY: Mosaid Seeks to Sue Over DRAM Patents ---------------------------------------------------- Jamie Santo at Bankruptcy Law360 reports that Mosaid Technologies Inc. asked a Delaware bankruptcy judge Wednesday for leave to bring a patent suit against Elpida Memory Inc., saying that Chapter 15 protection does not shield the bankrupt company from alleged infringements that occurred after its foreign filing. Bankruptcy Law360 relates that a leading producer of dynamic random access memory chips, Elpida initiated bankruptcy proceedings in Tokyo court back in February and followed in March with a Chapter 15 petition in Delaware seeking relief from U.S. creditors, particularly with regard to U.S. patent suits. About Elpida Memory Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a Japan-based company principally engaged in the development, design, manufacture and sale of semiconductor products, with a focus on dynamic random access memory (DRAM) silicon chips. The main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile RAM and XDR DRAM, among others. The Company distributes its products to both domestic and overseas markets, including the United States, Europe, Singapore, Taiwan, Hong Kong and others. The company has eight subsidiaries and two associated companies. After semiconductor prices plunged, Japan's largest maker of DRAM chips filed for bankruptcy in February with liabilities of 448 billion yen ($5.6 billion) after losing money for five quarters. Elpida Memory and its subsidiary, Akita Elpida Memory, Inc., filed for corporate reorganization proceedings in Tokyo District Court on Feb. 27, 2012. The Tokyo District Court immediately rendered a temporary restraining order to restrain creditors from demanding repayment of debt or exercising their rights with respect to the company's assets absent prior court order. Atsushi Toki, Attorney-at-Law, has been appointed by the Tokyo Court as Supervisor and Examiner in the case. Elpida Memory Inc. sought the U.S. bankruptcy court's recognition of its reorganization proceedings currently pending in Tokyo District Court, Eight Civil Division. Yuko Sakamoto, as foreign representative, filed a Chapter 15 petition (Bankr. D. Del. Case No. 12-10947) for Elpida on March 19, 2012. * JAPAN: Economy Minister Says No Bailout for Electronics Firms --------------------------------------------------------------- AFP reports that a senior Japanese politician hinted on Friday that a government bailout was not on the cards for the nation's struggling electronics giants, after embattled Sharp cast doubt on its own survival. According to the news agency, economy minister Seiji Maehara said the likes of Panasonic and Sharp, on track to book combined annual losses of more than $15.0 billion, should not expect the kind of taxpayer-funded rescue handed to once-bankrupt Japan Airlines or TEPCO, operator of the crippled Fukushima Daiichi nuclear plant. "In this society of capitalism, I believe companies in general should rebuild themselves through their own efforts," AFP quotes Mr. Maehara as saying at a press briefing in Tokyo. AFP notes that US President Barack Obama came under fire in some quarters over his administration's bailout of the US auto industry but the issue is a sensitive one in Japan, where there is a general reluctance to let failing companies go under. AFP says Japan's electronics industry has suffered from a long list of problems, including a high yen, slowing demand in key export markets, fierce overseas competition and strategic mistakes which have left its finances in ruins. AFP relates that neither Sharp nor key rivals Panasonic and Sony have sought bankruptcy protection as they undergo massive corporate restructurings. But Sharp, which makes Aquos-brand electronics, recently warned of a $5.6 billion annual loss, its credit rating has been reduced to junk, and the firm itself has raised questions over its viability, AFP notes. ==================== N E W Z E A L A N D ==================== CAPITAL + MERCHANT: Directors' Breach Not Intended, Lawyer Says --------------------------------------------------------------- Hamish Rutherford at stuff.co.nz reports that lawyers for the three jailed directors of Capital + Merchant said the actions of their clients were "not good enough" but this did not mean they had breached the Crimes Act. stuff.co.nz relates that appearing before the Court of Appeal in Wellington Nov. 7, Bruce Gray, QC, said Justice Edwin Wylie had asked the wrong question when he convicted Neal Nicholls and Wayne Douglas of a series of charges of theft by a person in a special relationship. Capital + Merchant went into receivership in November 2007 owing 7,000 investors NZ$167 million. Messrs. Nicholls and Douglas were later jailed for 7 years each under charges brought by the Serious Fraud Office, and former chief executive Owen Tallentire was jailed for five years. Mr. Tallentire has separate legal representation but his lawyer, Nathan Gedye, simply reaffirmed Mr. Gray's argument against the conviction. According to the report, Mr. Gray told the court that to prove his clients were guilty of the charges brought against them, Justice Wylie would have to have been satisfied beyond reasonable doubt that they had intended to breach Capital + Merchant's trust deed. However, his sentencing notes suggested he simply inferred it from the "not attractive" facts of the transactions to which the charges related. "I'm not going to tell you these transactions were terrific, or even good enough. I understand that they're not. . . I'm not here to tell you good processes were followed, because they weren't," the report quotes Mr. Gray as saying. "But I am here to say that His Honour failed to consider explicitly the question he posed for himself: 'Was there an intention to breach the trust deed?'" Mr. Gray, as cited by stuff.co.nz, argued that the evidence showed there was a misguided view among the directors that the transactions could be completed without breaching the trust deed. Doubt and scepticism about the intentions of directors was not enough. "What is required is proof," Mr. Gray told the Court, stuff.co.nz, relays. During sentencing in the High Court in August, Justice Wylie said the directors had been driven by self-interest and greed, with one transaction "devoid of any semblance of morality". About Capital + Merchant Capital + Merchant Finance Ltd, operating in property finance, was one of the bigger finance companies in New Zealand. Capital + Merchant Finance, along with subsidiary Capital + Merchant Investments Ltd., went into receivership on Nov. 23, 2007, due to breaches in respect of general security agreements issued by the companies in favor of creditor Fortress Credit Corporation (Australia) 11 Pty Ltd. Fortress appointed Tim Downes and Richard Simpson of Grant Thornton, chartered accountants, while trustee Perpetual Trust have called in KordaMentha. Capital + Merchant owes about NZ$190 million to 7,000 investors. Fortress reportedly has a prior charge over assets and was owed around NZ$70 million in total. * NEW ZEALAND: New Liquidators Appointed to Norris Cases -------------------------------------------------------- Sally Kidson at stuff.co.nz reports that the official assignee has appointed new liquidators to handle Nelson liquidator Pat Norris' four unfinished cases, following his fraud conviction. stuff.co.nz recalls that search orders were served last month at Mr. Norris' Mount St home and Haven Rd offices, and the new liquidators took away files and documents relating to the four liquidations. According to the report, insolvency practitioner Rhys Cain and chartered accountant Bruce Gemmell, of Ernst and Young of Christchurch, were appointed by the official assignee to take over the cases following Mr. Norris' conviction for fraud this month. The outstanding cases Mr. Norris had were Trafalgar Tops, Murchison Buses, Frost Steel Compactors and Astra Enterprises, the report discloses. stuff.co.nz relates that Mr. Cain said that under the legislation, the official assignee had to appoint an experienced liquidator to take over the liquidations. He was not aware of a similar incident having happened in New Zealand before, the report relays. stuff.co.nz notes that following a judge-only trial this month, Judge Michael Behrens found that Norris had stolen NZ$80,900 from the liquidation of Auckland company Astra Enterprises. He has yet to be sentenced on that charge. The fraud conviction disqualified him from acting as a liquidator or a company director. RIS GROUP: Late Annual Report Prompts NZX to Suspend Firm --------------------------------------------------------- stuff.co.nz reports that RIS Group has been suspended from the NZX, after the Sydney-based company failed to file its annual report. stuff.co.nz relates that the market operator said Nov. 8 that trading in RIS Group's shares has been suspended following the company's failure to provide its annual report for the year to June 30. The report was due to be delivered by October 31, stuff.co.nz relays. On November 5, the report recalls, NZAX-listed RIS Group applied for a waiver on the rule requiring it to file its annual report, saying the sale of its main operating subsidiary Retail Information Systems Pty to a company listed on the Bombay Stock Exchange had been delayed. According to stuff.co.nz, RIS said it now expected settlement of the sale in mid-November. It had limited resources to complete both the sale and the audit of its 2012 financial statement, and believed completing the sale took priority, RIS told the NZX. Based in Auckland, New Zealand, RIS Group Limited engages in the development, marketing, and licensing of retail scan data and EFTPOS terminal software. ===================== P H I L I P P I N E S ===================== * PHILIPPINES: Fitch Rates Proposed Global Bond 2012 at 'BB+' ------------------------------------------------------------- Fitch Ratings has assigned the Republic of the Philippines' proposed PHP-denominated global bonds due 2022 an expected rating of 'BB+ (EXP)'. The proceeds will be used to fund the cash tender offer for the repurchase of outstanding bonds as part of the Republic's broader liabilities management programme. The final rating is contingent upon receipt of final documents conforming to information already received. As the currency of settlement is specified as USD, the rating is in line with the Philippines' Long-Term Foreign Currency Issuer Default Rating (IDR). Philippines' Long-Term Local Currency IDR is 'BBB-'. The rating Outlooks are Stable. * PHILIPPINES: Moody's Rates Peso Global Bond Issuance '(P)Ba1' --------------------------------------------------------------- Moody's Investors Service has assigned a provisional rating of (P)Ba1 to the Philippine government's forthcoming global Philippine peso-denominated bond issuance. Ratings Rationale Moody's upgraded the Philippines' foreign currency and local currency sovereign ratings to Ba1 from Ba2 on October 29, 2012. The key drivers for the decision were: 1) the country's improved economic performance and continued fiscal revenue buoyancy in the face of deteriorating global demand; 2) its enhanced prospects for growth over the medium-term; and 3) the stable financial system that poses limited contingent risks and provides a stable source of financing for the government. Despite headwinds stemming from softening external demand, the Philippines has demonstrated exceptional economic and fiscal resilience over the past year. In 2012, in contrast to rating peers, the country is projected to record a combination of faster growth, lower inflation, exchange rate appreciation, and foreign exchange reserve accumulation, while maintaining trend debt consolidation. Moody's expects a primary surplus to be maintained this year. Revenue performance has improved despite the absence of legislative reforms, while spending disbursements, especially on infrastructure, have picked up significantly. Furthermore, active debt management, coupled with the central bank's increasingly solid track record of inflation management, has allowed for an improvement in the country's debt structure, including lower average borrowing costs and foreign currency exposure, as well as longer average maturities. The rating is supported by sound macroeconomic policy management, as reflected in the health of the balance of payments and financial system stability. The sovereign's external payments position continues to be bolstered by healthy remittance inflows, as well as increasingly large receipts from the business process outsourcing (BPO) sector. Coupled with sizeable capital inflows, the robust current account surplus has led to the accumulation of international reserves to $82.1billion as of end-October 2012, an ample cushion relative to residual maturity short-term debt and to cope with the risk of a sudden stop in external credit. However, revenue mobilization continues to lag those of similarly rated countries despite the gains in tax administration over the past two years. A structural change in revenue generation will thus likely require significant fiscal reform. The government also carries a large public-sector debt overhang relative to its peers, but this is mitigated to a certain extent by the presence of a bond sinking fund that guards against near-term liquidity pressures. The principal methodology used in this rating was Sovereign Bond Ratings published in September 2008. * PHILIPPINES: S&P Rates Peso-Denominated Global Bond at 'BB+' -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' debt rating to a peso-denominated senior unsecured global bond by the Republic of the Philippines (BB+/Stable/B; axBBB+/axA-2). The bond matures in 2022. Standard & Poor's has also assigned its 'axBBB+' ASEAN regional scale rating to the bond. "We have equalized the rating on the bond with our foreign currency sovereign rating on the Philippines. The bond represents direct unconditional obligations of the sovereign, and ranks pari passu with the government's other external commercial debt obligations," S&P said. "All principal and interest payments will be made in U.S. dollars, with the dollar amount payable calculated according to the average representative market exchange rate for five business days immediately prior to the time the payments are due. Therefore, bondholders bear the exchange rate risk and, as such, the global peso bond contributes to the government's objective of further reducing exchange rate risk to the sovereign's debt profile. The government will use the proceeds to repurchase selected U.S.- dollar and euro-denominated debt with the aim of further reducing the Philippines' foreign currency-denominated debt, which is currently about 38% of the total debt," S&P said. "The sovereign credit ratings on the Philippines encompass the country's relatively low income level, weak fiscal profile, and high, albeit improving, public debt and interest burden. These constraints are balanced by a robust external profile highlighted by a net external creditor position and strong liquidity ratios, as well as a track record of moderately strong growth with low variability," 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. 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